KTPP Rules 2000, With Circulars

ORDERS/ NOTIFICATIONS/ CIRCULARS REFRADING KARNATAKATRANSPARENCY IN PUBLIC PROCUREMENTS ACT 1999 AND RULES 2000 AND PROCUREMENT REFORMS Sl. No. Order/Notification/Circular No. and date Subject 1. Notification No.PWD/154/FC-III/2000 K.T.P.P. Rules, 2000 (Kannada (P3) dt. 24.10.2000 version) 2. Notification No.PWD/154/FC-III/2000 K.T.P.P. Rules, 2000 (English (P3) dt. 24.10.2000 version) 3. Notification No. Samvyashae 20 K.T.P.P. Rules, 2000 (Kannada Shasana 2000 dt: 13.12.2000 version) 4. Notification No.PWD/154/FC-III/2000 Corrigendum of Rule 17(b) of (Part-I) dt. 17.1.2001 K.T.P.P. Rules 5. Notification No. Samvyashae 29/ K.T.P.P. Act, 1999 (English version) Shasana 1999 dt. 16.02.2001. 6. Notification No. PWD 22 FC 3/2001 KTPP (Amendment) Rules 2001dt: 1.3.2001 Amendment of Rule 27. 7. Circular No. PWD 33 FC-III 2001 dt. 21.3.2001 8. Notification No. PWD 154 FC3 2001 KTPP (Amendment) Rules 2001(Part-I) dt: 2.4.2001 Amendment of Rule 26 and 29 9. Notification No. Samvyashae 33 K.T.P.P. (Amendment) Act 2001Shasana 2001 dt. 25.8.2001. Amendment of Section 4(e). (Kannada) 10. Notification No. Samvyashe Shasana 2001 dt: 6.9.2001 33 K.T.P.P. (Third Amendment) Rules, 2001 – Amendment of Rule 25. 11. Notification No. Samvyashe Shasana 2001 dt: 6.9.2001. 33 K.T.P.P (Amendment) Act 2001 – Amendment of Section 4(e) (English) 12. Circular No. PWD 513 FC-III/ 2001 Clarification regarding K.T.P.P. dt: 29.10.2001 (Amendment) Act 2001 13. Notification No. PWD 513 FC-III/ Clarification regarding K.T.P.P. 2001 dt: 19.11.2001 (Amendment) Act 2001 14. Circular No. PWD 33 FC-III/2001 Clarification regarding Publication of dt: 10.12.2001 Tender bulletin. 15. Circular No.PWD 1359 SO/FC/2001 Creation of a Procurement Cell in the dt: 15.12.2001 Finance Department 16. Circlar No. PWD 389 FC-III/2001 Clarification regarding provision of (Part) dt: 30.1.2002 price preference to SSI units in the K.T.P.P. Rules 2000. Clarifications regarding various provisions of K.T.P.P. Act 1999 and K.T.P.P. Rules 2000. 2 Sl. No. 17. Order/Notification/Circular No. and date Circular No. PWD 84 FC-III/2001 dt. 25.2.2002. Subject 18. G.O.No. PWD 1359 SO/FC 2001 dt: 5.8.2002 Constitution of Standing Committee for implementation of Procurement Reforms Action Plan 19. G.O. No. PWD 1359 SO/FC 2001 dt: 14.8.2002 Constitution of Working Group for implementation of procurement Reforms Action Plan. 20. Circular No. PWD 1359 SO/FC 2001 Guidelines regarding awarding of (P-2) dt: 25.10.2002 contract to the lowest evaluated technically and commercially responsive tenderer who meets the prescribed qualification criteria including tender capacity and past performance. 21. Circular No. PWD 1359 SO/FC 2001 Procurement planning, packaging and (P-2) dt: 25.10.2002 scheduling and making available funds to match with the requirement as per approved procurement plan. 22. Circular No. PWD 1359 SO/FC 2001 Guidelines for conducting (P-2) dt. 3.12.2002 negotiations before the award of contract. 23. Circular No. PWD 1359 SO/FC 2001 Verification of qualification criteria and (P-2) dt: 3.12.2002 available tender capacity before the award of contracts. 24. Notification No.PWD/33/FC-3 2003 KTPP (Amendment) Rules 2003 Two dt: 5.3.2002 Stage Tender System. 25. Notification No. Samvyashae 05 KTPP (Amendment) Act 2003 Shasana 2003 dt: 27.3.2003 Amendment to Section 4(d). 26. Circular No. PWD 122 SO/FC 2003 Constitution of a Sub-committee to dt: 8.5.2003 look into certain issues of Procurement Reforms Action Plan 27. Ltr. No. PWD 409/FC-3/2003 dt: 19.5.2003 Eliciting comments for review of KTPP Act 1999 and Rules 2000–reg. 27A G.O.No. DPAR 26 EGV 2003 dt: 03.06.2003 Constitution of a Steering Committee for setting up e-Procurement Platform. 28. Circular No. PWD 1359 SO/FC 2001 (P-2) dt: 3.12.2002 Two-cover tender System – safeguards to be adopted. 29. Circular No. 39 SaSiVi 2002 dt: 16.7.2003 Creation of Procurement Cell in Finance Department. Regarding publication of tender bulletins through the Web Site. 3 Sl. No. 30. 31. 32. 33. 34. Order/Notification/Circular No. and date Corrigendum No. DPAR 26 EGV 2003 dt: 26.7.2003 Circular No. PWD 141 SO/FC 2003 dt: 29.8.2003 Circular PWD 140 SO/FC 2003 dt: 1.9.2003 Notification No.PWD 121 SO/FC 2003 dt: 26.9.2003 Addendum No. DPAR 26 EGV 2003 dt: 27.10.2003 35. Circular No. FD 737 FC-III/2003 dt: 27.11.2003 36. Circular No. PWD 145 SO/FC/2003 dt: 22.12.2003 37. Circular No. PWD 321 FC-3/2003 dt: 27.12.2003 38. Circular No. FD 9 Pro. Cell/2004 dt: 25.2.2004 39. G.O.No. DPAR 26 EGV 2003 dt: 15.5.2004 Circular No.FD 50 Pro. Cell/04 dt: 30.6.2004 G.O.No. FD 59 Pro. Cell 2004 Dt: 23.12.2004 G.O.No. PWD 22 RDF 2004, Dt: 23.12.2004 G.O.No. PWD 146 SO/FC 2003, Dt: 27.12.2004 40. 41. 42. 43. 44. G.O.No. FD 56 Pro. Cell 2004, Dt: 18.1.2005 45. Circular No. FD 57 Pro. Cell 2004, Dt: 20.1.2005 46. G.O.No. FD 55 Pro. Cell 2004, Dt: 17.2.2005 Subject Steering Committee to finalise details of e-procurement Plattorm Draft Standard Documents relating to procurement of Goods/Services Procedure for sale of tender documents. KTPP (Amendment) Rules 2003 Consultancy services. Co-opting of members on Steering Committee for e-procurement platform. Avoidance of nomination of Officers of The Finance Dept. to Committees for procurement of goods And services – Instructions regarding. Procurement Reforms – Constitution of Standing Committee for implementation Co-opting of members. Regarding making of pre-audit arrangement – Departments in relation to procurement of goods and services. Procurement Reforms – Standard Tender and Contract Documents – Preparation and Publication of – reg., Government Orders regarding the setting up of e-Procurement Platform. KTPP Act, 1999-Disallowing of request for exemption under the Act. Re-constitution of Committee for revision of P.W.D. Codes Re-constitution of Committee for revision of P.W.D. Codes Revision of Karnataka Financial Code and Manual of Contingent Expenditure Reg. Procurement Reforms – Measurement of Works and Supplies – Use of Measurement Books. Procurement Reforms types of Contracts and Guidelines for their choice. Third Party Inspection of Works, Goods And Equipment. amendments issued upto 2004. 2000 and Circular Instructions issued upto December. A Standing Committee has been constituted to look into various aspects of the implementation of the Transparency Act. . Rules there under and the Circular Instructions issued from time to time at one place. Bangalore Date: 22. The State Government. 1999 has come into effect from 4th October. This Act is intended to streamline procedures in Public Procurement and also ensure accountability in public procurement. Act. Karnataka Transparency in Public Procurements Rules. 2000. The Standing Committee has made a number of suggestions and the State Govt. This Committee is overseeing procurement reforms in the State and also suggesting measures to further strengthen the existing provisions/modifications required to ensure proper complaiance of the procurement law. This compendium contains the Karnataka Transparency in Public Procurements Act. has also initiated a series of procurement reforms. Finance Department.2004 Sd/(Sudhakar Rao) Principal Secretary to the Government. while making it mandatory for all the procurement agencies under the government to follow the tendering process in public procurement. 2004 and is being brought out With a view to enabling the Departments to have easy access to the provisions of the Karnataka Transparency in Public Procurements.12. 1999.4 FORE WORD The Karnataka Transparency in Public Procurements Act. issued instructions through Circulars to ensure that the transparent and efficient methods of procurement are effectively practised. 5 Éâª. dâ}ÖËrdâ ÉâdÖËpâÀâó o Àâ°³·dâ. 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Àâ°yâ°K ²Ú ÅÖgâgâÔâ Àêkâ+gâÔâ}â°Q Éâ³äÉâ°Àâó{â° ÉÖ|âXÆpâ°ÀêvêgâÔâ¶[ Àâ°yâ°K ~âîgâ¹Éâ±Ýâ°{Ö{â dâvêgâÔâ¶[ ¾¬ËÍâD~âÚÉâyâdâ"{â°M: 26. o Àâ°°ª¬}âÀâógâÔâ A|Öpâ{â Àê°©Èê Âêªvâpâ°{Öpâpâ ~âòÀÖËÝâËyêgâùgÖÐ I~ⱪ|â dâ¶RÉâyâdâ"{â°M: î©»: (U) E{ê© î©»Ìâ° dâpÖpâ°gâÔâ}â°Q dÖÌâ°Ëgâyâgê³ùÉâ°Àâ¶[ Epâ°Àâ %}â°ÅâÀâ Àâ°yâ°K þª¬}â ¾ÀâËÝâÇêÌâ° (²) û±Tª¬. (4) (3)}ê© I~â ¾Ìâ°Àâ°{â Àê°©pêgê ¾¬ËÍâD~âÚû{â %ÀâºÌê³Ôâgê %gâyâXÆpâ°Àâ a~âRª{âÀâ}â°Q ±pê{â°dê³vâ·° Ìâ°µâû] Âêªvâpâ°{Öpâ}â° ÆÁâ·}Ö{â Éâª{âÅâË{â¶[ }âªyâpâ Àâ°°ªgâvâ Ýâx{â tê©Àâ¹Ìâ°}â°Q Àâ°°r°Dg곩·° ÝÖÑdê³Ôâ\yâdâ"{â°M Àâ°yâ°K %Àâ}â Âêªvâpâ}â°Q ~âZ»ÑZÌê°ÏÖpâ{â Âêªvâpâ° Uª{â° ¾xËΰÉâyâdâ"{â°M. Âêªvâpâ° %ªÐ©dÖpâÀÖÐpâ°Àâ Âêªvâpâ°{Öpâ}â° ¾¬ËÍâD ~âÚû{â }âÀâ°³}êÌâ°¶[ dâpÖpâ° a~âRª{âÀâ}â°Q ±pê{â°dê³vâ°Àâªyê %gâyâX~âÚÉâÈÖgâ°Àâó{â°. (3) Âêªvâpâ° {âÉÖKÀê©m°gâÔâ¶[ Éâ³äÉâÈÖÐpâ°Àâ %ªzâ Éâ³dâK ÉâÀâ°Ìâ°{â aÔâgê.gâÔâ ÀâÃñ·XÀâ}â°Q Æ°©î{â Âêªvâpâ°gâÔâ Éâª{âÅâË{â¶[ ÂêªvâpÒ AÝÖ]¾Éâ°Àâ ~ÖZºdÖpâÀâó Upâvâ° ·d곩Âê ÂêªvâpÒ ~â{âP»Ìâ°}â°Q %}â°ÉâîÉâyâdâ"{â°M. (Ú) Éâ°ÉâªgâyâÀêª{â° ~âîgâ¹Éâ°Àâ ÌâÃÖÀâó{ê© Eyâpâ ÀâÃÖþ» . ApÒ. (5) A yâpâ°ÀÖÌâ° (4)}ê© I~â ¾Ìâ°Àâ°{â Àê°©pêgê %ÝâË Âêªvâpâ°{Öpâpêª{â° dâªvâ°±ª¬pâ°ÀâÀâpâ° Éâ³äûpâ°Àâ ÏêÈêÌâ°}â°Q aÔâg곪Úpâ°Àâ Upâvâ}ê© ·d곩ÂêÌâ°}â°Q ÀâÃÖyâZ ÂêªvâpÒ AÝÖ]¾Éâ°Àâ ~ÖZºdÖîÌâ°° yêpêÌâ°yâdâ"{â°M. %Ä©·°:¥ 15}ê© ~âZdâpâx{â Àê°©pêÐ}â aª{â° %Ä©·}â°Q:¥ (U) EÈÖfÖ Àâ°°ÙXÉâLîgê %º©}âpÖ{â ÂêªvâpÒ %ªÐ©dâîÉâ°Àâ ~ÖZºdÖîÌâ°° A{ꩵâgâÔâ}â°Q Ýê³pâÚû{âMpê É⪱ª|â~ârD EÈÖfÖ Àâ°°ÙXÉâLîgê (²) A{ꩵâÀâ}â°Q EÈÖfÖ Àâ°°ÙXÉâLpâ° %zâÀÖ ÉâLù©Ìâ° ~ÖZºdÖpâ %zâÀÖ pÖmX ÉâdÖËpâ{â I{âXÀâ° %zâÀÖ ÉâdÖËpâ{â avêyâ}â %zâÀÖ %{âpâ ¾Ìâ°ªyâZx{â¶[pâ°Àâ aª{â° Àâ°ªvâù ¾dÖÌâ° ¾gâÀâ° %zâÀÖ ÌâÃÖÀâó{ê© Eyâpê ~ÖZºdÖpâ ÂêªvâpÒ %ªÐ©dâîÉâ°Àâ ~ÖZºdÖpâÀâó AÐ Ýê³pâÚû{âMpê ÉâdÖËpâdê". (6) ÂêªvâpÒ AÝÖ]¾Éâ°Àâ ~ÖZºdÖpâÀâó 25 Àâ°yâ°K 26}ê© ¾Ìâ°Àâ°{â¶[pâ°Àâ Æ|Ö}âÀâ}â°Q %}â°ÉâîÉâyâdâ"{â°M. ±Úgê©pÒ ÉâdÖËpâ{â %º©}â dÖÌâ°Ë{âúË. %|ÖXÌâ° ¥ VII %Ä©·°gâÔâ° 29. ¥Éâ¶[Éâyâdâ"{â°M dâ}ÖËrdâ pÖmX~Ö·pâ A{ꩵÖ}â°ÉÖpâ Àâ°yâ°K %Àâpâ ÝêÉâî}â¶[ dê. È곩d곩~âÌ곩Р(A¼Ëdâ d곩µâ) .13 (3) Upâvâ}ê© ·d곩ÂêÌâ°° Âêªvâpâ°{Öpâ}â° Éâ³äûpâ°Àâ ÏêÈêgâÔâ}â°Q aÔâg곪Úpâyâdâ"{â°M. (4) Âêªvâpâ° AÝÖ]¾Éâ°Àâ ~ÖZºdÖîÌâ°° Àê³{â· ·d곩ÂêÌâ°}â°Q Àê³{â·° yêpêÌâ°°Àâªyê ÀâÃÖvâyâdâ"{â°M Àâ°yâ°K Âêªvâpâ° {âÉÖKÀê©Ê}â¶[ ¾¬ËÍâD~âÚûpâ°Àâ ÀâÃÖ}â{âªvâ{â A|Öpâ{â Àê°©Èê Âêªvâpâ°{Öpâpâ ÉÖÀâ°zâXËÀâ}â°Q ÀâÃñ·XÀâÃÖ~â}â ÀâÃÖvâyâdâ"{â°M Àâ°yâ°K %{âpâ A|Öpâ{â Àê°©Èê %ÝâË Âêªvâpâ°{Öpâpâ ~âsDÌ곪{â}â°Q yâÌâÃÖîÉâyâdâ"{â°M. CHAPTER . namely:(i) Construction. PWD/154/FC-III/2000 Dated: 24th October 2000 NOTIFICATION CHAPTER . one containing the Earnest Money Deposit and the details of their capability to undertake the tender which will be opened first and the second cover containing the price quotation which will be opened only if the tenderer is found to be qualified to execute the tender.14 THE KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS RULES. (2) The State Tender Bulletin shall be published by the State Tender Buttein Officer at least once in every week. Definitions: In these rules. Categories of procurement:.I PRELIMINARY In exercise of the powers conferred by Sub Section (1) of Section 23 of the Karnataka Transparency in Public Procurement Ordinance 2000. unless the context otherwise requires (a) "earnest money deposit" means the amount required to be deposited by a tenderer along with his tender indicating his willingness to implement the contract. CHAPTER .(1) For the purposes of the application of these rules.III PUBLICITY 4. Publication of tender bulletin:. 2000 No. (b) "Pre-qualification" means the process by which the tenderers are first screened for their capability and resources to implement the contract before they are permitted to offer their tenders. procurment is categorized as follows. (b) They shall come into force on the date of Publication in the Gazette 2. .(1) The District Tender Bulletin shall be published by the District Bulletin Officer at least once in every week.(a)These rules may be called be called the Karnataka Transparency in Public Procurements Rules. 2000. Short title and commencement:.II GENERAL 3. (c) "two-cover system" means a procedure under which the tenderers are required simultanously submit two separate sealed covers. and (ii) Supply of goods and services. the Government of Karnataka hereby makes the following Rules namely:1. apex Cooperative Institution.(1) The Tender bulletin Officer shall make the tender bulletin available in the concerned office of the Government department. Statutory board.- . (2) Intimation of acceptance of tender shall not in itself create a legal right.The Notice inviting Tenders shall contain the Following details. notices inviting tenders and decisions on tenders shall be published in the district Tender Bulletion of the district where the headquarters of the Tender Inviting Authority is located. namely. 8. (b) The value of the procurement is rupees one crore and above. half-yearly or quarterly.15 (3) The Tender Bulletin Officer shall cause to be published all notices inviting tenders and intimations of acceptance of tenders received upto forty eight hours prior to the actual publication of the bulletin. 9. public sector undertaking. or a head of a government department.(1) The tender bulletin shall contain only information of the notice inviting tenders. Information to be published in the district tender bulletin:. 6. University or State Level Society Formed by the Government. or the Chief Executive of a Public Sector Undertaking. as the case may be. Provided that where a value of procurement is rupees one crore and above. then the Secretary to Government of the concerned administrative department in the case of the State Tender Bulletin or the Deputy Commissioner in the case of the District Tender Bulletin may for the reasons to be recorded in writing. Tender Bulletin to contain information only:. (3) A notice inviting tender will not be invalidated merely on the grounds that the notice has not been published in the News papers. (3) Any person or institution can be enrolled as a regular subseriber to the tender bulletin on payment of a fixed fee annually. Information to be published in the state tender builetin:. Details to be mentioned in notice inviting tenders:. local authority statutory board. it shall also be published in the State Bulletin. 5. 7. (4) In case notice inviting tender or information relating to acceptance of the tender needs to be published urgently. Distribution of tender Bulletins:. university or cooperative institution. direct the respective tender bulletin officers to publish an extraordinary issue of the tender bulletin. (2) The Tender Bulletin Officer shall make available adequate copies of the tender Bulletin at the office of the Tender Inviting Authority whose notice inviting tenders and intimation of tender acceptance finds place in the bulletin.The notice inviting tenders and decisions on tenders shall be published in the State Tender Bulletin in cases where.Subject to the provisions of rule 10. (a) The Tender Inviting Authority is a secretary to Government. time and place for opening of tenders received. CHAPTER . 10.16 (a) The name and address of the procuring entity and the designation and address of the Tender Inviting authority.(1) The technical specifications contained in the tender documents shall include a detailed description of what is proposed to be procured. project or programme for which the procurement is to be effected. (c) The date upto which and places from where the tender documents can be obtained. and (g) any other information which the Tender Inviting authority considers relevant. The Director of Information and Publicity shall publish the Notice Inviting Tenders as per instructions of the tendering department.IV NOTICE INVITING TENDERS AND TENDER DOCUMENTS 11. (4) The notice inviting tender shall be given due publicity in Newspapers and also by a fixing on notice boards in the District Offices. (e) The last date and time for receipt of tenders. along with the brand name the expression "or equivalent" shall be added. . Publication of notice inviting tenders in newspapers:. Technical specifications contained in the tender documents:. (3) In cases where publication of Tender Notices is to be done only in newspapers with circulation within the District. the Information and Publicity Officer of the District shall be the competent authority to release the advertisement shall be the Director of Information and Publicity Bangalore. (2) The number. (f) The date. (2) Unbiased technical specifications shall be prepared by observing observing the following safeguards. (b) Name of the scheme.(1) The Tender Inviting Authority shall have the notice inviting tenders published in the Indian Trade Journal in all cases where the value of procurement exceeds rupees ten crores. (d) The amount of earnest money deposit payable. (b) Wherever possible the appropriate Indian Standards with the number shall be incorporated. editions and language of the newspapers in which the notices inviting tenders shall be published will be based on the value of procurement as per departmental rules. namely:- by (a) use of brand names and catalogue numbers shall be avoided and where it becomes unavoidable. Clarification to tender documents:. Supply of tender documents:. Provided that any category of tenders specifically exempted by the Government from the payment of earnest money deposit will not be required to make such a deposit. (5) The tender documents shall indicate the quantity proposed to be procured in the tender. (2) The Tender Inviting Authority shall ensure that the tender documents are made available to any person who is willing to remit the cost of the documents. (2) The tender documents shall specify the period for which the tenderer should hold the prices offered in the tender valid. Provided that in the cases where the procuring entity has a system of registration of contractors. 12. the tender documents will be supplied only to registered contractors in the appropriate class.At any time after the issue of the tender documents and before the opening of the tender. the tender Inviting authority may make any changes.(1) The tender documents shall require all tenderers to pay an earnest money deposit at the rates as per the departmental rules by means of a demand draft. bankers.17 (c) In the case of construction tenders. a security deposit be taken from the successful tenderer as per departmental rules. cheque. (4) The tender documents and the contract shall include a clause for payment of liquidated damages and penalty payable by the tenderer in the event of nonfulfillment of any of the terms or whole of the contract. detailed estiates shall be prepared by the competent technical authorities based on the schedule or rates and standard data as revised from time to time. (3) The Tender Inviting Authority shall be registered post or couricr the tender documents to any prospecitive tenderer whop makes a request for the documents on payment of cost along with postal charges at the risk and responsibility of the prospective tenderer. 13. irrevocable bank guarantee in a specified form of the department. specified small savings instruments or where the procuring entity deems fit. modifications or amendments to the tender documents and shall send intimation of such change to all those who have purchased the original tender documents. Commercial conditions:.(1) the Tender Inviting Authority shall make available the tender documents from the date indicated in the notice inviting tender. 14. The quantity finally ordered only to the extent of twenty five percent either way of the requirement indicated in the tender documents. and the Tender Accepting authority shall be ordinarily permitted to vary. The tender documents shall clearly state that any tender submitted without the earnest money deposit be summarily rejected. Provided that the initial period of validity shall not be less than ninety days. (3) The tender documents shall require that as a guarantee of the tenderer's performance of the contract. . Place and time for receipt of tenders:. 16. This minimum period shall be as follows:(a) For tender upto rupees two crores in value. thirty days. (c) Any other reasonable grounds exist.V RECEIPT OF TENDERS AND TENDER OPENING 15.(1) all the tenders received by the tender Accepting Authority shall be opened at the time specified in the Notice Inviting Tenders and in cases where an extension of time for the submission of tenders has been given subsequent to the original Notice Inviting Tenders in in accordance with sub-rule (3) of rule 15 at the time so specified subsequently.The tenderer shall be responsible for properly superscribing and sealing the cover in which the tender is submitted and the Tender Inviting Authority shall not be responsible for accidental opening of the covers that are not properly superscribed and sealed as required in the tender documents before the time appointed for tender opening. . Opening of tenders:.(1) Tender Inviting Authority shall ensure that adequate time is provided for the submission of tenders and minimum time is allowed between date of publication of the Notice Inviting Tenders in the relevant tender Bulletin the last date for sumission of tenders. (2) The Tender Inviting Authority shall permit the submission of tenders by post or courier. Marking of covers in which the tender is submitted:. (2) The tenders will be opened in the presence of the tenderers or one of the representatives of the tenderer who chooses to be present. in the tender documents to the prospective tenderers under rule 14 took time. Minimum time for submission of tenders:. (3) The Tender Inviting Authority may extend the last date and time for receiving tenders after giving adequate notice to all intending tenderers in cases where:(a) The publication of the tender notice has been delayed. 17. 18. (b) The communbication of changes. and (b) For tenders in excess of rupees two crores in value thirty days (2) Any reduction in the time stipulated under sub-rule (1) has to be specifically authorized by an authority superior to the Tender Inviting Authority for reasons to be recorded in writing. for such extension which shall be recorded in writing by the Tender Inviting Authority. Provided that the Tender Inviting Authority shall not be responsible for any delay in trans it in such cases.(1) The Tender Inviting authority shall ensure that adequate arrangements are made for the proper receipt and safe custody of the tenders at the place indicated for the receipt of tenders.18 CHAPTER . (d) The name of the tenderers and the quoted prices should be read out. (2) The Tender accepting authority shall constitute the Tender Scrutiny Committee. 23. CHAPTER . The signatures of the tenderers present shall be obtained unless any of the tenderers or his representative refuses to sign the minutes. 22. (b) All the tenders received in time shall be opened. (3) In case the evaluation of tenders and award of contract is not completed within extended period. (e) The fact whether earnest money deposit has been made and other documents required have been produced may be indicated. (2) The Tender Accepting Authority shall seek extension of the validity of tenders from the tenderers for the completion of evaluation. irrigation department and minor irrigation department and one crore in respect of all the other departments.The Tender Accepting Atuhority shall cause the evaluation of tenders to be carried out strictly in accordance with evaluation criteria indicated in tender documents. Tender scrutiny committee:.VI TENDER EVALUATION 21. (c) A record of the corrections noticed at the time of the bid opening shall be maintained. all the tenders shall be deemed to have become invalid and fresh tenders may be called for. (f) Minutes of the tender opening shall be recorded.19 19. within the period for which the tenders are held valid. but this shall be merely an examination of the documents and not an evaluation.(1) Tender Accepting Authority may constitute a Tender Serutiny Committee consisting of such officers as it deems fit to scrutinize the tender documents. Tender evaluation to be in accordance with evaluation Criteria:. supervise opening of tenders carry out the preliminary examination and detailed evaluation of the tenders received and to prepare an evaluation report for the consideration of the Tender Accepting Authority. 20. as for as possible.(1) The Tender Inviting Authority shall ensure the . Process of tender evaluation to be confidential until the award of the contract is notified:. Time taken for evaluation and extension of tender validity:.(1) The evaluaction of tenders and award of contract shall be completed. Procedure to be followed at tender opening:. where the value of tender exceeds rupees five crores in respect of public works.the following procedure shall be followed at the tender opening:(a) All the envelopes received containing tenders shall be counted. if it is not completed within the validity period of tender. shall be detrmined. (2) In determining the lowest considered. (d) Whether the tender is substantially responsive to the technical specifications set out in the bidding documents including the testing of samples where required. (2) Tenders shall not make attempts to establish unsolicited and unauthorised contact with the Tender Accepting authority. (b) In case of discrepancy between the prices quoted in words and in figures. (c) Whether the requisite earnest money deposit has been furnished. 24. and minor . the Tender Inviting authority or the Tender Accepting authority or the Tender Scrutiny Committee may seek bonafide clarifcations from tenderers relating to the tenders submitted by them during the evaluation of tenders.(1) Out of the tenders found to be substantially responsive after the initial examination the tenderer who has bid the lowest evaluated price in accordance with the evaluation criteria or tenderer scoring the highest on the evaluation criteria specified as the case may be.20 confidentiality of the process of tender evaluation until orders on the tenders are passed. namely:(a) Whether the tenderer meets the eligibility criteria laid down in the tender documents. Initial examination to determine substantial responsiveness:. namely:- evaluated price. Determination of the lowest evaluated price:. (b) Whether the crucial documents have been duly signed. (2) During the initial examination the following factors shall be considered. lower of the two shall be considered. Tender Inviting Atuhority or Tender Scrutiny Committee after the opening of the Tender and prior to the notification of the Award and if any attempt by the tenderer to bring to bear extraneous pressures on the Tender Accepting authority shall be sufficient reason to disqualify the tenderer. 25. the following factors shall be (a) the quoted price shall be corrected for arithmetical errors. (3) Notwithstanding anything contained in sub-rule (2). (c) adjustments to the price quoted shall be made for deviations in the commercial conditions such as the delivery schedules.(1) The Tender Inviting Authority shall cause an initial examination of the tenders submitted to be carried out in order to determine their substantial responsiveness. (3) Tenders which on initial examination are found not to be substantially responsive under any of the clauses under sub-rule (2) may be rejected by the Tender Accepting Authority. with a comparative statement of tenders received and decision thereon for publication in the Tender Bulletin. Pre-qualification Procedure:. 50 lakhs in value where the prequalification procedure or Turn Key Tender System are not being followed the tender inviting authority shall follow the two -cover tender system. The Tender Accepting Authority shall also send to the Tender Bulletin Officer a statement of evaluation of the tenders. the tenderer whose tender has been accepted will be required to execute the contract agreement in the specified format (4) In case the successful tenderer fails to execute necessary agreement under sub rule (3) within the period specified. tenders exceeding Rs. (c) Financial status and capacity. (2) As soon as the tenderer qualified to perform the contract is indentified.(1) In the case of construction or supply and installation of equipment. (2) The first cover shall contain the following information about the tenderer namely: (a) Experience and past performance in the execution of similar contracts. 26.(1) The tender inviting authority shall for reasons to be recorded in writing provide for pre-qualification of tenderers on the basis of: (a) experience and past performance in the execution of similar contracts. (3) Within such reasonable time as may be indicated in the tender documents. where practicable and considered. (b) Capabilities of the tenderer with respect to personnel. Two Cover Tenders:. in accordance with section 12 the Tender Accepting Authority shall pass orders acceting the tender and communicate the order of acceptance to the successful tenderer.(1) Tender Scrutiny Committee or the officer inviting the tender shall prepare detailed evaluation report which shall be considered by the Tender Accepting Authority before taking a final decision on the tender. 27. equipment and construction or manufacturing facilities.21 variations in the payment terms which are quantifiable but deemed to be non-material in the context of the particular tender. (2) Only the tenders of pre-qualified tenderers shall be considered for evaluation. the operation and maintenance and spare part costs for appropriate periods as may be specified in bid documents may be quantified. 28. then Earnest Money Deposit shall be forfeited and his tender held as non-responsive. Preparation of evaluation report and award of tenders:. (d) The evaluation shall include all central duties such as customs duty and central excise duty inclusive of local levies as a part of the price. (e) In the case of purchase of equipment. . prepare a list of qualified tenderers. (5) Thereafter. (3) The second cover shall contain the prices quoted by the tenderer. the Second cover containing the price quotations of only those tenderers found qualified under sub-rule (4) Shall be opened by the tender inviting authority. Body Corporation or any other authority owned or controlled by the Government.VII APPEALS 29.22 (b) Capabilities with respect to personnel. BADIGER Under Secretary to Government PWD (Finance Cell) . equipment and construction or manufacturing facilities (c) Financial status and capacity (d) any other information considered relevant.An appeal under section 15 shall lie: (a) to the Head of the Department concerned if the order is passed by the Tender accepting authority subordinate to the Head of the Department: (b) To the Government if the order is passed by a tender accepting authority which is Head of the Department. By Order and in the name Governor of Karnataka K. CHAPTER .R. (6) The tender inviting authority shall follow the procedure outline in rule 25 and 26. (4) The tender inviting authority shall cause the first cover to be opened first and evaluate the tenderer's capacity on the basis of criteria specialied in the tender document and on this basis. 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I~âƺgâÔâ°. dêôÄÚgâÔâ°. a~âRª{â aª{â° }ÖXÌâÃÖ·Ìâ°{â %zâÀÖ }ÖXÌâÃÖºdâpâx{â %zâÀÖ Eyâpâ ~ÖZºdÖpâ{â ÚÑZ %zâÀÖ A{ꩵâ{â¶[ %{âdê" %ÉâªgâyâÀÖÐ O}ê© aÔâgê³<ªÚ{âMpâ³ ~âîÇÖÀâ°dÖîÌâÃÖgâyâdâ"{â°M. %ºÉâ³kâ}ê Àâ°³·dâ o %º¾Ìâ°Àâ°{â I{êM©µâgâÔâ}â°Q }êpâÀê©îÉâ·°. ƾÌâ°Àâ°gâÔâ°. 25. 22. o %º¾Ìâ°Àâ°{â ~ÖZpâªÅâ ¬}Öªd⬪{â Upâvâ° ÀâÍâËgâÔâ %ÀâºÌâ° yâpâ°ÀÖÌâ° %ªzâ ÌâÃÖÀâó{ê© A{ꩵâÀâ}â°Q ÀâÃÖvâyâdâ"{âM·[. UÈÖ[ ¾Ìâ°Àâ°gâÔâ°. 24. EÈÖfÖ ÉâªþyêgâÔâ°. %ºÉâ³kâ}êgâÔâ°. 2000Àâ}â°Q (2000{â dâ}ÖËrdâ %{ÖX{ꩵâ ÉâªfêX 8) o Àâ°³·dâ ¾pâÉâ}âgê³ùÉâÈÖÐ{ê. ÝÖÐ{âMpâ³ %ªzâ ÌâÃÖÀâó{ê© ÀâÃÖ~ÖËr° %zâÀÖ pâ¬MÌâÃÖ»Ìâ°° A ¾Ìâ°Àâ°{â %zâÀÖ %ºÉâ³kâ}ê %zâÀÖ A{ꩵâ{â %ÚÌâ°¶[ þª{ê ÀâÃÖÚ{â ÌâÃÖÀâó{ê© dâ½yâX{â ûª|â°yâ]dê" ~âZ»dâ³·ÀÖÐyâdâ"{âM·[. 23. (2) o %º¾Ìâ°Àâ°{â %ÚÌâ°¶[ pâ×û{â ~âZ»Ì곪{â° ¾Ìâ°Àâ°Àâ}â°Q %zâÀÖ Ýê³pâÚû{â %ºÉâ³kâ}êÌâ°}â°Q %zâÀÖ A{ꩵâÀâ}â°Q %{â}â°Q pâ×û{â %zâÀÖ Ýê³pâÚû{â yâpâ°ÀÖÌâ° A{âÍâ°D Ïê©gâ}ê pÖmX Æ|Ö}âÀâ°ªvâ·{â ~âZ»Ì곪{â° Éâ{â}â{â Àâ°°ª{ê. A{ꩵâgâÔâ°. o %º¾Ìâ°Àâ°{â I~ⱪ|âgâùgê %ÉâªgâyâpâÀÖÐpâ{â %ªzâ I~ⱪ|âgâÔâ}â°Q pâ×Éâ±Ýâ°{â°: ~âpâªyâ°. yâyÖ"·{â¶[ uÖîÌâ°¶[pâ°Àâ Eyâpâ ÌâÃÖÀâó{ê© dÖ}â³}â° %zâÀÖ ÌâÃÖÀâó{ê© pâ³Û %zâÀÖ AkâpâÇê. 27. %º¾Ìâ°Àâ°Àâó Eyâpâ dÖ}â³}â°gâÔâ Àê°©Èê %|ÖXp곩þ ~âZÅÖÀâ Ý곪¬pâ°Àâó{â° :¥ o %º¾Ìâ°Àâ°{â I~ⱪ|âgâÔâ°. ÉâdÖËpâÀâó pÖmX ~âyâZ{â¶[ ~âZdâsÉâÈÖ{â A{ꩵâ{â Àâ°³·dâ y곪{âpêÌâ°}â°Q ¾ÀÖîÉâ·° %gâyâXÀêª{â° %zâÀÖ Ìâ°°dâKÀêª{â° dâªvâ°±pâ°Àâ. %Àâó o %º¾Ìâ°Àâ°{â I~ⱪ|âgâùgê %ÉâªgâyâÀÖgâ¬pâ°ÀâÍâDpâÀâ°sDgê Àâ°yâ°K o %º¾Ìâ°Àâ°{â %ÚÌâ°¶[ ÀâÃÖvâÈÖ{â ÌâÃÖÀâó{ê© dÖÌâ°Ë %zâÀÖ dêôgê³Ôâ\ÈÖ{â ÌâÃÖÀâó{ê© dâZÀâ° %zâÀÖ pâ×ÉâÈÖ|â ÌâÃÖÀâó{ê© ¾Ìâ°Àâ°. Àâ°³pâ° ÀâÍâËgâÔâÀâpêgê ÆÉâKîÉâ±Ýâ°{Ö{â aª{â° %ÀâºÌâ° dÖpÖÀÖÉ⬪{â Àâ°yâ°K Y{â° ÉÖÆpâ pâ³~ÖΰgâÔâÀâpêgê ÆÉâKîÉâ±Ýâ°{Ö{â m°ÈÖW}êΰª{â {âªÚyâ}Ögâyâdâ"{â°M. A yâpâ°ÀÖÌâ° A ¾Ìâ°Àâ°{â %zâÀÖ %ºÉâ³kâ}ê %zâÀÖ A{ꩵâÀâó Éâª{âÅÖË}â°ÉÖpâ %ªzâ ÀâÃÖ~ÖËÂÖ{â pâ³~â{â¶[ ÀâÃÖyâZ ~âîÇÖÀâ°dÖîÌâÃÖgâyâdâ"{â°M %zâÀÖ ~âîÇÖÀâ°dÖîÌâÃÖgâyâdâ"{âM·[. %ºÉâ³kâ}ê %zâÀÖ A{ꩵâ{â Àâ°³·dâ pâ{â°Mgê³ùÉâÈÖÐ{âM Ýê³pâyâ° o %º¾Ìâ°Àâ°{â ÉâªÀÖ¬ I~ⱪ|âgâÔâ %ÚÌâ°¶[ ÀâÃÖvâÈÖÐ{âMpê Ýê©g곩 ÝÖgê uÖîÌâ°¶[pâ°Àâó{â° Àâ°°ª{â°ÀâîÌâ°yâdâ"{â°M Àâ°yâ°K ~âîÇÖÀâ°dÖîÌâÃÖÐpâyâdâ"{â°M. Éâ°yê³K©ÈêgâÔâ° %zâÀÖ Eyâpê ÌâÃÖÀâóÀê© A{ꩵâgâÔâ°. . ¾Ìâ°Àâ° pâkâ}ÖºdÖpâ :¥ (1) ÉâdÖËpâÀâó. %ºdâ½yâ uÖC~â}âgâÔâ°. %ÀâµâXdâÀÖ{â %ªzâ ¾Ìâ°Àâ°gâÔâ}â°Q pâ×Éâ±Ýâ°{â°. ¾pâÉâ}â Àâ°yâ°K IùÉâ°ÆdêgâÔâ° :¥ (1) dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %|ÖX{ꩵâ. ÌâÃÖÀâó{ê© }ÖXÌâÃÖ·Ìâ°Àâó ¾±Ëª|âdÖuêCÌâ°}â°Q Ýê³pâÚÉâyâdâ"{âM·[. 31 (2) ÝÖgê ¾pâÉâ}âg곪Ú{ÖMgâ³X. Éâ{âî %|ÖX{ꩵâ{â %ÚÌâ°¶[ ÀâÃÖÚ{â ÌâÃÖÀâó{ê© dÖÌâ°Ë %zâÀÖ dêôg곪vâ ÌâÃÖÀâó{ê© dâZÀâ°Àâ}â°Q o %º¾Ìâ°Àâ°{â %ÚÌâ°¶[ ÀâÃÖvâÈÖÐ{ê %zâÀÖ dêôgê³Ôâ\ÈÖÐ{ê Uª{â° ÅÖÆÉâyâdâ"{â°M. ÉâªÉ⬩Ìâ° ÀâXÀâÝÖpâgâÔâ° Àâ°yâ°K µÖÉâ}â pâkâ}ê EÈÖfê. dâ}ÖËrdâ pÖmX~Ö·pâ A{ꩵÖ}â°ÉÖpâ Àâ°yâ°K %Àâpâ ÝêÉâî}â¶[ Ê. {âÑ_ÇÖÀâ°³»Ë ÉâdÖËpâ{â dÖÌâ°Ë{âúË (~âZ). . Reference: Notification No: PWD 154 FC-III/2000 Dt: 24. No.R.2000 Published in the Karnataka Gazette extraordinary Date: 24-10-2000 In the Notification No. BADIGER Under Secretary to Government .10. PWD 154 FC-3/2000 (Part-I) Bangalore. 2000 the following corrections shall be read namely:Sl. PWD 154 FC-III 2000 dated 24th October 2000 Published in party IV-A of the Karnataka Gazette Extra-Ordinary dated 24th October. Line For Read 1 7 19 Thirty days Sixty days By Order and in the name Governor of Karnataka K. 2000. Page No. Dated 17th January 2001 Subject : Karnataka Transparency in Public Procurement Rules.32 Public Works Department CORRIGENDUM No. Bangalore. 2000. WHEREAS it is expedient in public interest to render the process of procurement of goods and services by Procurement Entities transparent by streamlining the procedure in inviting. roads. unless the context otherwise requires. 2001 Ordered that the translation of the dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. 1999 in the English language. 2000) (Amended by Act 21 of 2001) An Act to provide for ensuring transparency in public procurement of goods and services by streamlining the procedure in inviting. (Received the assent of the Governor on the tenth day of December.(a) ‘Construction Works’ means putting up. ASMVYASHAE 29 SHASANA 1999. 1999. be published as authorised by the Governor of Karnataka under cluase (3) of the Article 348 of the Constitution of India in the Karnataka Gazette for general information. 2000) THE KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT. bridges or other structures including fabrication of steel structures and all other civil works. 1999. and for matters related thereto. be published in the Official Gazette under the authority of the Governor of Karnataka under cluase (3) of the Article 348 of the Constitution of India. processing and acceptance of tenders. KARNATAKA ACT NO. 29 OF 2000 (First Published in the Karnataka Gazette Extraordinary on the thirteenth day of December. 2..In this Act.33 Parliamentary Affairs and Legislation Secretariat' Notification No. (2) It shall be deemed to have come into force with effect from the fourth day of October. 1999 in the English language.(1) This Act may be called the Karnataka Transparency in Public Procurements Act. BE it enacted by the Karnataka State Legislature in the fiftieth year of the Republic of India as follows:CHAPTER I 1. Short title and commencement. The following translation of the dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. processing and acceptance of tenders by Procurement Entities. repairs or renovation of buildings. Definitions.. . Dated 16th February. demolishing. under section 9. (h) ‘Tender’ means the formal offer made for supply of goods or services in response to an invitation for tender published in a Tender Bulletin. (j) ‘Tender Bulletin’ means a bulletin published for the State as a whole or for any district or districts within the State containing the details of invitation. procurement criteria and such other particulars. obtaining of services or undertaking of construction works by the procurement entities. use or distribution by a Procurement Entity in discharge of its public duties.The provisions of Chapter II shall not apply to Procurement of goods and services. Body or Corporation established by or under any law and owned or controlled by the Government. shall not apply to procurement of goods or services for such project. processing and acceptance of Tenders.The provisions of this Act in so far as they are inconsistent with the procedure specified in respect of the Projects funded by International Financial Agencies or Projects covered under International Agreements. food grains. Local Authority or Board. (d) ‘Procurement Entity’ means any Government Department. Furniture. oil and oil seeds or other commodity required for consumption. helping or benefiting a Procurement Entity in the course of discharging its public duties and includes construction works. (i) ‘Tender Accepting Authority’ means an officer or a Committee appointed to accept tenders and a ‘Tender Inviting Authority’ means an officer or a Committee appointed to invite tenders. scientific instruments. (c) ‘Government’ means the State Government. drugs. Articles of Stationary. and any other body or authority owned or controlled by the Government and as may be specified by it. as may be prescribed for evaluation and comparison of tenders. 3. 4. (k) ‘Tender Bulletin Officer’ means a State Tender Bulletin Officer or a Tender Bulletin Officer referred to in section 7. a State Government Undertaking.(a) During the period of natural calamity or emergency declared by the Government . technical specifications. Equipment. Motor Vehicles. attending upon.. Provisions not to apply to certain Projects. (g) ‘Specified goods or Services’ means the goods or services as the case may be specified in a tender and identified in the contract resulting from acceptance of a tender on account of a procurement entity. (f) ‘Services’ means the action of serving.34 (b) ‘Goods’ means Machinery. (l) ‘Tender Document” means the set of papers detailing the schedule of works. chemicals. requirement of goods and services. (e) ‘Public Procurement’ or ‘procurement’ means purchase of goods.. calendar of events. . textiles raw materials. Exceptions to applicability. 1987. purchase of oil seeds by the Karnataka Agro-Industries Corporation or the Karnataka Co-operative Oil Seeds Grower's Federation. and (g) in respect of specific procurements as may be notified by the Government from time to time. 1993. (h) in respect of spot purchase of cotton by Spinning Mills.35 (b) Where the goods or services are available from a single source or where a particular supplier or contractor has exclusive rights in respect of the goods or services or construction work and no reasonable alternatives or substitutes exist: Provided that for the purpose of this clause there shall be a committee of three experts consisting of one technical representative of the procuring entity one technical representative of the Government organisation dealing with similar procurement and one representative from a reputed Academic or Research Institution or Non-Commercial Institution having expertise in such line to examine and declare that the goods or services are available from a single source. purchase of sugarcane by Sugar Mills. Municipal Councils and Town Panchayats constituted under the Karnataka Municipalities Act. constituted under the Karnataka Panchayats and Zilla Panchayats. (f) Where the goods or services are procured under rate contracts from the Director General of Supplies and Disposals or from the Stores Purchase Department of the State. 1976. public sector undertakings. 1993. 1991 and the Bayaluseeme Development Board constituted under the Bayaluseeme Development Board Act. (i) by the Government Departments does not exceed rupees five lakh. 1964. Explanation:. Taluk. Panchayats and Zilla Panchayats. (c) Where the procuring entity having procured goods. constituted under the Karnataka Panchayat Raj act. or (ii) by a local authority for the purpose of implementing mini-water supply scheme or construction of school rooms does not exceed rupees two lakhs and for other purpose. Malnad Area Development Board constituted under the Malnad Area Development Board Act. Municipal Corporations Constituted under the Karnataka Municipal Corporations Act.For the purpose of this clause local authority includes Grama Panchayats. does not exceed rupees one lakh. 1994. (e) Where the value of the goods or services to be procured. Urban Development Authorities constituted under the Karnataka Urban Development Authorities Act. (d) Where the goods or services are procured from certain Departments of Government. services or technology from a supplier or contractor determines that additional supplies must be procured from the same supplier or contractor for reasons of standardization and compatibility with the existing goods. for a period not exceeding two years from the date of commencement of this Act. Hyderabad Karnataka Area Development Boardconstituted under the Hyderabad Karnataka Area Development Board Act. service or technology. statutory boards and such other institutions specified by the Government and such goods are manufactured or services are provided by them. direct purchase . Procurement other than by Tender Prohibited. 8. the State Tender Bulletin or as the case may be District Tender Bulletin.. Tender Inviting Authority and Tender Accepting Authority.. processed or accepted by a Procurement Entity after the commencement of this Act except in accordance with the procedure laid down in this Act or the rules made thereunder. (2) Deputy Commissioner of the District shall be the District Bulletin Officer.(1) The Government may by notification appoint an officer not below the rank of a Deputy Secretary to Government of the concerned department to be the State Tender Bulletin Officer for the State in respect of that Department where the procurement of that department covers more than one district. purchase of cloth by the Karnataka Handloom Development Corporation.. specified procurement or specified class of goods or services. purchase of cloth by the Government Departments and public sector undertaking from the Karnataka Handloom Development Corporation and purchase by such other organizations or purchase of any other material as may be notified by the Government from time to time. 9. appoint. purchase of milk by the Karnataka Milk Producers Co-operative Federation. CHAPTER II REGULATION OF PROCUREMENT 5. 6.. by order. publish within the prescribed time.(1) The State Tender Bulletin Officer. Publication of Tender Bulletin.36 of paddy by the Agricultural Produce Market Committees and the Karnataka Food and Civil Supplies Corporation. (2) The Tender Bulletin shall be made available for sale in the office of the Tender Bulletin Officer and in such other places as the Tender Bulletin Officer deems fit to make available. 7. purchase of silk by the Karnataka Silk Industries Corporation. Tender Bulletin Officers. purchase of palm oil by the Karnataka Food and Civil Supplies Corporation and the Karnataka Co-operative Oil Seeds Grower's Federation.On and from the date of commencement of this Act no Procurement Entity shall procure goods or services except by inviting Tenders for supply. or as the case may be. (i) one or more of officers or a Committee of Officers to be the Tender Inviting Authority for any specified area.(1) The Procurement Entity may. and . Procurement Entities to follow Procedure. the District Tender Bulletin Officer shall on receipt of intimation relating to notice of invitation of tender from tender inviting authority or information relating to details of acceptance of tender under section 13 or rejection of tender under section 14 from the tender Accepting Authority.No tender shall be invited.. (2) The Authority. in each case.. draw up a list of tenderers in the prescribed manner and unless it is also the Tender Accepting Authority.. Acceptance of Tender. Tender Scrutiny Committee.The Tender Accepting Authority shall. within the time stipulated and unless it is itself authorised to open the tender shall compile and forward all the tenders received to the Authority or Officer authorised to open the tenders. after following such procedure as may be prescribed pass order accepting the tender and .(a) to take out notice inviting tenders at the behest of the Procurement Entity in the prescribed manner. 13.. or as the case may be the officer referred to in sub-section (1) shall open the tender.(1) The Procurement entity may authorise either the Tender Inviting Authority or the Tender Accepting Authority or any other Officer to open the Tenders and draw up a list of Tenderers responding to the notice inviting tender. (c) to cause publication of notice inviting tenders in the prescribed manner.(1) It shall be the duty of every Tender Inviting Authority. by such mode and at such time and interval as may be prescribed and different manner and mode of publication may be prescribed for different procurements depending on the value of the procurement.37 (ii) one or more of officers or a Committee of Officers to be the Tender Accepting Authority for any specified area or Specified Procurement. Opening of Tenders. Irrigation and Minor Irrigation Departments of the Government and above rupees one crore in other cases. 10. in such manner. (2) The Tender Inviting Authority shall take out notices. Duties of Tender Inviting Authority. and (d) to supply the Schedule of Rates and Tender Documents to every intending tenderer who has applied to get such documents. forward the tenders along with the list of tenderers. (3) The Tender Inviting Authority shall collect all the details received in response to the notice inviting tender. such Committee shall be deemed to be a Tender Accepting Authority appointed under this Act. 12.. (b) to communicate the notice inviting tenders by marking a copy thereof to the Tender bulletin Officer concerned immediately after issue of the notice. to the Tender Accepting Authority. specified class of goods and services: Provided that where a multi-member Committee is already appointed for any Procurement Entity for discharging the function of accepting tenders. 11. communications and publications required to be taken out under this section in such form.The Tender Accepting Authority may constitute a Tender Scrutiny Committee consisting of such persons as it deems fit to scrutinise tenders above five crores in the case of the Public Works. - . with a view to ensuring transparency in the procurement process call upon any authority under this Act. from any Authority under this Act. Power to call for records. 15.(1) Any tenderer aggrieved by an order passed by the Tender Accepting Authority other than the Government under section 13 may appeal to the prescribed authority within thirty days from the date of receipt of the order: Provided that the prescribed authority may.. in its discretion allow further time not exceeding thirty days for preferring any such appeal. Appeal.The Government may at any time.. and it shall be duty of the Procurement Entity or such authority to comply with the directions. calamities or any other ground as may be prescribed which would render the procurement unnecessary or impossible and report the same to the Procurement Entity.(1) The Tender Accepting Authority may at any time before passing an order of acceptance under section 13 reject all the tenders on the ground of changes in the scope of procurement. (3) The prescribed authority shall as far as possible dispose of the appeal within thirty days from the date of filing thereof.. General rejection of tenders. (2) The prescribed authority may after giving opportunity of being heard to both the parties pass such order thereon as it deems fit and such order shall be final. the Government may with a view to ensuring transparency call for and obtain. (2) The Procurement Entity shall thereafter communicate the fact of the rejection under this section to all the Tenderers and also cause the same to be published in the Tender Bulletin.Notwithstanding anything contained in this Act or in any other law for the time being in force. Power to give directions. he shall not act to accept the tender without obtaining prior approval of the Procurement Entity: Provided further that subject to such general or special order as may be issued by the Government from time to time.. from the date fixed for the acceptance for tender.38 shall communicate the information relating to acceptance of tender together with a comparative analysis and reasons for accepting of tender to the procurement entity and the Tender Bulletin Officer: Provided that where the Tender Accepting Authority consists of single officer who is due to retire within the next six months. 17. the Tender Accepting Authority may before passing order accepting a tender negotiate with lowest tenderer. 16. if it is satisfied that the appellant had sufficient cause for not preferring the appeal in time. accidents.It shall be competent for the Government to give appropriate directions to the Procurement Entity or the Authorities under this Act in order to secure and maintain transparency at any stage of the process of procurement. 18. Power to obtain information. any information relating to any matter in the process of procurement. 14.. failure of anticipated financial resource. 24. the Government may..Every Officer acting under or in pursuance of the provisions of this Act or under a rule. CHAPTER III MISCELLANEOUS 19. 20. by or under this Act. Bar of Jurisdiction of Courts.39 (i) to produce records relating to invitation. Power to remove difficulties. 25. decree or order of a Court or a Tribunal or other Authority.Save as otherwise provided in this Act no order passed or proceedings taken by any officer or authority under this Act shall be called in question in any court. order or notification made thereunder. Penalty. shall be deemed to be a public servant within this meaning of section 21 of the Indian Penal Code. be placed before each House of the State Legislature while it is in session for a total period of thirty days. which may be comprised in one session or in two or more successive sessions and if before the expiry of the session in which it is laid or the sessions immediately following both Houses agree in making any modifications in the rule. Act to override other laws.. processing and acceptance of tenders .(1) The Government. Power to make rules.. 1860 (Central Act XLV of 1860).The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any custom or usage. may by notification. by order published in the Gazette make such provisions not inconsistent with the provisions of the Act as appear to them to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after this expiry of a period of two years from the date of commencement of the Act.. agreement.. (2) Every rule made or notification or order issued under this Act shall as soon as possible. 21.No suit or other legal proceeding shall lie against the Government or any officer or authority empowered to exercise powers or perform the functions under the Act in respect of anything which is in good faith done or intended to be done under this Act.Whoever contravenes the provisions of this Act or the rules made thereunder shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to five thousand rupees.. estimates/statements/accounts or statistics relating to such tenders. (ii) to furnish the tender document. make such rules as are necessary for carrying out the purposes of this Act. after it is made or issued. and (iii) to furnish report on any specific point incidental to the procurement. and no injunction shall be granted by any court in respect of any action taken or to be taken by such officer or authority in exercise of powers conferred on him or it. 22. notification or order or both . Officers deemed to be Public Servants.. Immunity for action taken in good faith. 23.If any difficulty arises in giving effect to the provisions of this Act. notifications departmental codes. orders. 2000 (Karnataka Ordinance No. manuals.All rules. DPAL 29 Shasana 1999 dated 16. RAMADEVI Governor of Karnataka By Order and in the name of the Governor of Karnataka M.2.) V. Repeal and savings. the rule or notification or order shall thereafter have effect only in such modified form or be of no effect. (2) Notwithstanding such repeal anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under this Act. official Memoranda. Savings.40 Houses agree that the rule.S. however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification or order. 8 of 2000) is hereby repealed.. as the case may be.2. circular or any other order made or issued before the commencement of this Act and in force on the date of such commencement providing for or relating to any of the above matters for the furtherance of which this Act is enacted shall continue to be in force and effective as if they are made under the corresponding provisions of this Act. is made under this Act.2001 as No. notification or order shall not be made. (The above translation of the dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. regulations.. so.(1) The Karnataka Transparency in Public Procurements Ordinance. 27.R. 26. to the extent they are not inconsistent with the provisions of this Act and unless and until superceded by anything done or any action taken or any rule. Hegde Secretary to Government Department of Parliamentary Affairs and Legislation . notification or order. 352 (Note: No.2001) under clause (3) of Article 348 of the Constitution of India. 1999 (2000pâ dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 29) be published in the Official Gazette (Extraordinary) dated 16. bye-laws. These rules may be called the Karnataka Transparency in public Procurements (Amendment) Rules.. PWD/22/FC-3/2001 Bangalore: 1-3-2001 NOTIFICATION In exercise of the powers conferred by section 25 of the Karnataka Transparency in Public Procurements Act.R. so far as may be in accordance with these rules. BADIGER Under Secretary to Government PWD (Finance Cell) . (2) they shall come into force on the date of their publication in the official Gazette.. the following provision shall be inserted namely:Provided that notwithstanding anything contrary contained in these rules the tender inviting Authority may adopt the list of prequalified tenderers empanelled by the Directorate of Information Technology. Short title and commencement.41 NO. 1999 (Karnataka Act 29 of 2000) the Government of Karnataka hereby makes the following rules to amend the Karnataka Transparency in Procurements Rules. peripherals and related services And call for price bids from all such prequalified tenderers and the price bids received from the prequalified tenderers shall be considered for evaluation by the tender accepting authority.In rule 27 of the Karnataka Transparency in Public Procurements Rules. Amendment of rule 27." By Order and in the name of the Governor of Karnataka K. 2001. 2000 namely:1. 2. Government of Karnataka in respect of computers. 2000. after sub-rule (2). .1 lakh for other works by the local bodies. then a 'Nil' report be published and circulated. In public The departments are already aware of KTPP Act. 3) Content of the Tender bulletin. Tender bulletin shall be published at least once in every week. It shall be printed by the tender bulletin officer other through Govt. 2) Publication of tender bulletin. under Sec. Accordingly following clarifications are brought to notice of all the concerned. 14 of the Act shall be publish in the bulletin. It shall be printed like a booklet covering the information as mentioned in Rule 7 & 8 and it should be distributed as per Rule 5. l lakh for other works incase of local bodies shall be followed as per existing applicable Rules/Proceudres/Codes of the Dept. the Tender Bulletin Officer after receipt of notice of Acceptance of tender under Sec. 1999 and Rules.5 lakhs in case of govt.1. 5) Procedures to be followed for purchases below Rs. and below Rs. govt. Dept. will make separate provision for tender bulletin expenditure Cost of the bulletin should be fixed at Rs. So part-A of the bulletin shall contain tender inviting notices. 8 of the Act. part-B should contain order relating to tender acceptance and Part-C shall contain orders relating to general rejection of tender.5 lakhs by Govt. Any procuremen of goods and services below Rs.2 lakhs in case of water supply and school buildings and below Rs. The tender notice as per Rule 9 published by each tender inviting authority shall be printed in the bulletin as it is. 4) Budget provision for printing of Tender Bulletin and fixing cost of it. How ever following tender procedure is not banned for procurement below the above monitory limit. 1) Regarding printing of Tender Bulletin. Printing Press or in Private Press after following procedures/rules as applicable.42 NO. 8 of the Act As per Sec. Depts. 13 of the Act or Rejection of tender. as followed earlier to the Act as mentioned in Sec.2 lakhs for water supply and school buildings and below Rs. Some of the Deputy Commissioners and Departments have sought clarification on some issues. It need not be printed either in the Gazette or in News paper. Further tender bulletin shall also contain information as given by the Tender Inviting/Accepting authority as it is as per Rule 8 and Sec.26 of the Act. If in a particular week there is no information to publish in the tender bulletin. and below Rs. In case of urgency an extraordinary bulletin shall be published after following procedures as per sub rule (4) of Rule 4. 1999 and Rules. 2000-reg. PWD/33/FC-III/2001 Bangalore: Dated: 21st March 2001 CIRCULAR Sub: Clarifications regarding Karnataka Transparency Procurement Act. 2000 issued in this behalf.00 per page and total cost per copy depends upon the total page of the bulletin. Corporations For any procurement through Public sector Undertaking. 7) Procurement of goods from DGSD firms and rate contract fixed by SPD. for any work taken up beyond the monitary limit of Rs. 9) Application of KTPP Act/Rules in case of other Centrally Sponsored Schemes. It should be ensured that such Undertaking manufactures the particular goods or render the service without subletting to any other private agency. and Departmental heads are once again requested to direct the procurement entitles under their control to follow the KTPP Act. 5 lakhs in case of Govt. Under Sub-rule (4) of Rule 4 it is indicated that the D. Public Sector Undertakings.. Under Sec. For example KSIMC is not a manufacturing unit. Rules. 1999 and KTPP. In case of State tender bulletin. the existing Procedures/Rules of the State have to be followed. like Swarna Jayanthi Scheme. 2000 scruplously. Boards. Udyoga Bharavase Yojana etc. GOPALA REDDY Principal Secretary Finance Department . 2 lakhs in case of water supply and school buildings by ZPs/Local bodies. Dept. 4(d) of the Act. Public Sector Undertakings include not only state but also Central Public Sector Undertakings.43 6) Procurement of goods and services from Govt. Therefore. this Act and Rules are applicable untill any change in system. 4(f) exemption is available if procurement is through DGSD firms and rate contract fixed by SPD. 8) Application of KTPP Act/Rules incase of MPLAD Scheme. and Rs. Under the guidelines of MPLAD. the above exemption clause doest not apply to it. Shahari rojagar Yojana. himself may record in writing the reasons for such extra ordinary bulletin and issue the same. If in the guildelines of the scheme itself entrustment of work to contractors is banned then the KTPP Act/Rules does not apply. Anybody violating the provisions of the Act and Rules is liable for penalty as per sec 23 of the Act. C.1 lakh in case of other works and Rs. Depts.. 10) Publication of Extraordinary Tender Bulletin in case of emergency. approval of the concerned Secretary to Govt. All the Secretaries to Govt. is required.C. exemption for 2 years from the date of publication of this Act is applicable as per Sec. Otherwise it has to be followed. Therefore. .In rule 26 of the Karnataka Transparency in Public Procurements Rules.. (here in after referred to as the said rules) in sub-rule (2). PWD 154 FC-3/2001(Part-1) Bangalore: Dated: 2nd April 2001 In exercise of powers conferred by section 25 of Karnataka Transparency in Public Procurements Act. 2.R. 2001. Title and commencement.In rule 29 of the said rules. Amendment of rule 26. (2) they shall come into force on the date of their publication in the official Gazette. 2000 namely:1. for the word and figures "Section 15" the word and figures "Section 16" shall be substituted. 2000. By Order in the name of the Governor of Karnataka K.These rules may be called the Karnataka Transparency in public Procurements (Amendment) rules. Amendment of rule 29.. 1999 (Karnataka Act 29 of 2000) the Government of Karnataka hereby makes the following rules further to amend the Karnataka Transparency in Public Procurements Rules. 3. for the word and figures "Section 12" the word figures "Section" shall be substituted.44 Public works Secretariat Notification No. BADIGER Under Secretary to Government PWD (Finance Cell) . -¥ ``(E) ÉâdÖËpâ{â EÈÖfêgâùª{â. 1993pâ %ÚÌâ°¶[ pâ×yâÀÖ{â Ýêô{âpÖÏÖ{Ò ~âZ{ꩵ֫À⽬P Àâ°ªvâ¶. E{â° ÅÖpâyâ gâxpÖmX{â YÀâyêKpâvâ}ê© ÀâÍâË{â¶[ dâ}ÖËrdâ pÖmX Æ|Ö}â Àâ°ªvâ·¬ª{â o Àâ°°ª¬}âªyê %º¾Ìâ°Æ°yâÀÖgâ¶. ÉâªÑ_~âK ÝêÉâpâ° Àâ°yâ°K ~ÖZpâªÅâ: (1) o %º¾Ìâ°Àâ°Àâ}â°Q dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. 2001pâ dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 21 2001pâ AgâÉÒD E~âRyêè{â}ê© ¬}Öªdâ{âª{â° dâ}ÖËrdâ pÖmX~âyâZ{â Ƶê©Íâ Éâª×dêÌâ°¶[ Àê³{â·° ~âZdârÀÖÐ{ê) dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ° 2001.45 ÉâªÉ⬩Ìâ° ÀâXÀâÝÖpâgâÔâ° Àâ°yâ°K µÖÉâ}â pâkâ}ê Éâ×ÀÖ·Ìâ° %ºÉâ³kâ}ê ÉâªfêX ÉâªÀâXµÖE 33 µÖÉâ}â 2001. 1999}â°Q »{â°M~âÚ ÀâÃÖvâ·° aª{â° %º¾Ìâ°Àâ°. E{âpâ¶[ E}â°Q Àâ°°ª{ê dâªvâ° ±pâ°Àâ I{êM©µâgâùgÖÐ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. (2) E{â° o dâ³vâÈê© uÖîgê ±pâyâdâ"{â°M 2. (ii) ÌâÃÖÀâóÀâógâÔâ ÀâÃñ·XÀâó aª{â° ·dâ_ pâ³~ÖΰgâÔâ}â°Q Æ°©îpâ°Àâó¬·[Àêò© A ¾ÀâÃÖËx dÖÀâ°gÖîgâÔâ}â°Q Ýê³pâyâ°~âÚû Éâª{âÅâË{â¶[. ÏêªgâÔâ³pâ°. Uª{âpê:1. Uª{âpê. %zâÀÖ Àâ°ÈÖQvâ° A«À⽬P Àâ°ªvⶠ%º¾Ìâ°Àâ°. 1991pâ %ÚÌâ°¶[ pâ×yâÀÖ{â Àâ°ÈÖQvâ° %«À⽬P Àâ°ªvⶠ%zâÀÖ ±Ìâ°·° û©Àê° %«À⽬P Àâ°ªvâ¶Ìâ° %º¾Ìâ°Àâ°.¥ . 2001 dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. pÖmXÉâdÖËpâ{â I{âXÀâ°gâùª{â %zâÀÖ ÌâÃÖÀâó{ê© dÖ}â³¾}â Àâ°³·dâ %zâÀÖ %{âpâ %ÚÌâ°¶[ ÉÖLÄyâÀÖ{â Àâ°yâ°K ÉâdÖËpâ{â avêyâ}â %zâÀÖ ¾Ìâ°ªyâZx{â¶[pâ°Àâ ÌâÃÖÀâó{ê© Àâ°ªvâ¶. ¬}Öªdâ 25}ê© AgâÉÒD. 1976pâ %ÚÌâ°¶[ pâ×yâÀÖ{â ~ñpâ¾gâÀâ°gâÔâ° %zâÀÖ dâ}ÖËrdâ ~ñpâÉâÅêgâÔâ %º¾Ìâ°Àâ°. (2001pâ AgâÉÒD E~âRyâK}Ö·"}ê© ¬}Öªdâ{âª{â° pÖmX~Ö·pâ %}â°Àâ°»Ìâ°}â°Q ~âvêÌâ°ÈÖÐ{ê) dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. 1993pâ %ÚÌâ°¶[ pâ×yâÀÖ{â ÊÈÖ[ ~âªkÖÌâ°yÒgâÔâ° %zâÀÖ ~ñpâ¾gâÀâ°gâÔâ %º¾Ìâ°Àâ°. 2001 Uª{â° dâpêÌâ°yâdâ"{â°M. 1999}â°Q (2000{â dâ}ÖËrdâ %º¾Ìâ°Àâ° 29) »{â°M~âÚÀâÃÖvâ°Àâó{â° Ìâ°°dâKÀÖÐpâ°Àâó{âîª{â.-¥ (i) ÌâÃÖÀâóÀâógâÔâ ÀâÃñ·XÀâó Y{â° ·dâ_ pâ³~ÖΰgâÔâ}â°Q Æ°©îpâ°Àâó¬·[Àêò© A UÈÖ[ ±gêÌâ° ¾ÀâÃÖËx dÖÀâ°gÖîgâÔâ Éâª{âÅâË{â¶[. ¾dÖÌâ° %zâÀÖ ¾gâÀâ°¬ª{â %zâÀÖ dâ}ÖËrdâ ~âªkÖÌâ°yÒ pÖuÒ %º¾Ìâ°Àâ°. 2001dê" 2001pâ AgâÉÒD 24}ê© ¬}Öªdâ{âª{â° pÖmX~Ö·pâ aÄRgê {ê³pê»{â°M. ÉÖÀâÃÖ}âX »Ôâ°ÀâùdêgÖÐ E{â}â°Q 2001pâ dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 21 Uª±°{ÖÐ dâ}ÖËrdâ pÖmX~âyâZ{â¶[ ~âZdâsÉâÏê©dêª{â° A{ê©úÉâÈÖÐ{ê. 1964pâ %ÚÌâ°¶[ pâ×yâÀÖ{â Àâ°°¾b~âÈÒ dñ¾bÈÒgâÔâ° %zâÀÖ Ýêô{âpÖÏÖ{Ò dâ}ÖËrdâ ~âZ{ꩵ֫À⽬P Àâ°ªvⶠ%º¾Ìâ°Àâ°. 1994pâ %ÚÌâ°¶[ pâ×yâÀÖ{â ±Ìâ°·° û©Àê° %«À⽬P Àâ°ªvâ¶Î°ª{â. 1999pâ (2000{â dâ}ÖËrdâ %º¾Ìâ°Àâ° 29) 4}ê© ~âZdâpâx{â¶[ (E) Ùªvâdê" o Àâ°°ª¬}â{â}â°Q ~âZ»Ì곩ÊÉâyâdâ"{â°M. 4}ê© ~âZdâpâx{â »{â°M~âÚ : dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. pÖ. 1987pâ %ÚÌâ°¶[ pâ×yâÀÖ{â }âgâpÖ«À⽬P ~ÖZºdÖpâgâùª{â. Ýêgâvê ÉâdÖËpâ{â dÖÌâ°Ë{âúË.'' dâ}ÖËrdâ pÖmX~Ö·pâ AuÖC}â°ÉÖpâ Àâ°yâ°K %Àâpâ ÝêÉâî}â¶[ Àâ°. dâ}ÖËrdâ ~ñpâ ÉâÅêgâÔâ %º¾Ìâ°Àâ°.46 -¥ ÉâªgâZÝâÇê ÀâÃÖvâÈÖÐ{âM¶[ (EE) Éâpâdâ°gâÔâ}â°Q %zâÀÖ Éê©ÀêgâÔâ}â°Q. 1964pâ %ÚÌâ°¶[ pâ×yâÀÖ{â ~ârDx ~âópâÉâÅêgâÔâ° %zâÀÖ ~ârDx ~âªkÖÌâ°»gâÔâ° %zâÀÖ dâ}ÖËrdâ }âgâpÖ«À⽬P ~ÖZºdÖpâ %º¾Ìâ°Àâ°. 1993pâ %ÚÌâ°¶[ pâ×yâÀÖ{â gÖZÀâ°~âªkÖÌâ°»gâÔâ° Àâ°yâ°K yÖ·³[dâ° ~âªkÖÌâ°»gâÔâ°. ÉâªÉ⬩Ìâ° ÀâXÀâÝÖpâgâÔâ° Àâ°yâ°K µÖÉâ}â pâkâ}ê EÈÖfê. dâ}ÖËrdâ ~âªkÖÌâ°yÒ pÖuÒ %º¾Ìâ°Àâ°. .i) ÌâÃÖÀâóÀâógâÔâ ÉâªgâZÝâÇêÌâ° ÀâÃñ·XÀâó Upâvâ° ·dâ_ pâ³~ÖΰgâÔâ}â°Q Æ°©îpâ°Àâó¬·[Àêò© A Ñpâ° ¾©pâ° Éâpâ±pÖm° Ì곩m}êÌâ° %}â°ÍÖF}â{â %zâÀÖ µÖÈÖdê³tâÚgâÔâ ¾ÀâÃÖËx{â I{êM©µâdÖ"Ð Àâ°yâ°K (ii) ÌâÃÖÀâóÀâógâÔâ ÉâªgâZÝâÇêÌâ° ÀâÃñ·XÀâó aª{â° ·dâ_ pâ³~ÖΰgâÔâ}â°Q Æ°©îpâ°Àâó¬·[Àêò© %ªzâ Eyâpê I{êM©µâgâùgÖÐ.-¥ ¥ ÉâªgâZÝâÇê ÀâÃÖvâÈÖÐ{âM¶[. . 1999 (Karnataka Act 29 of 2000) the Government of Karnataka here by makes the following rules further to amend the Karnataka Transparency in Public Procurements Rules. 2001. Dated: 30 August 2001 In exercise of powers conferred by section 25 of the Karnataka Transparency in Public Procurements Act. PWD 389 FC-3/2001 Bangalore. 2000. CI 167 SPI 2001. By Order in the name of the Governor of Karnataka K. in sub-rule (2).In rule 25 of the Karnataka Transparency in Public Procurements rules. Title and commencement. Amendment of Rule 25. BADIGER Under Secretary to Government PWD (Finance Cell) . the following shall be inserted at the end. namely:Provided that for a period of five years from the first day of April 2001.(1) These Rules may be called the Karnataka Transparency in public Procurements (Third Amendment) Rules. 2.47 Notification No. Explanation : For the purpose of this proviso small scale industry means an industiral undertaking in which investment in fixed assets in plant and machinery whether held on ownership terms or on lease or by hire purchase does not exceed rupees one hundred lakhs. small scale industrial Policy 2001-2006 issued by the Government in Order No.. (2) they shall come into force form the date of their publication in the official Gazette. dated 30th June 2001 While determining the lowest evaluated price. 2000 namely:1.R. or any Board. Whereas it is expedient to amend the Karnataka Transparency in Public Procurements Act. 2001 In the English language. 1964 or the Hyderabad Karnataka Areas Development Board constituted under the Hyderabad . (2) It shall come into force at once.This Act may be called the Karnataka Transparency in Public Procurements (Amendment) Act. the following shall be substituted.48 K. 2001 THE KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS (AMENDMENT) ACT. Samvyashae 33 Shasana 2001 Bangalore. 2. 2001) An Act to amend the Karnataka Transparency in Public Procurements Act. Body or Corporation established by or under any law and owned or controlled by the Government or Zilla Panchayats constituted under the Karnataka Panchayat Raj Act. Short title and commencement. Amendment of section 4. The following translation of the dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. 1993 or City Municipal Corporations established under the Municipal Corporations Act.In section 4 of the Karnataka Transparency in Public Procurements Act.P. be published as authorized by the Governor of Karnataka under clause (3) of Article 348 of the constitution of India in the Karnataka Gazette for general information. 2001 in the English language is published in the Official Gazette under the authority of the governor of Karnataka under clause (3) of Article 348 of the Constitution of India. 1999 (Karnataka Act 29 of 2000) for the purposes hereinafter appearing. namely:"(e) where the procurement is by the Government Departments.P. Be it enacted by the Karnataka State Legislature in the Fifty-second year of the Republic of India as follows:1.. 2001 Orderd that the translation of the dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. State Government Undertakings. ACT 1999 Parliamentary Afairs and Legislation Secretariat Notification No.. 2001 (Received the assent of the Governor on the Twenty Fourth day of August.T. 1976 or City Municipal Councils established under the Karnataka Municipalities Act. 1999. 1999 (Karnataka Act 29 of 2000) for clause (e). KARNATAKA ACT 21 OF 2001 (First published in the Karnataka Gazette Extra-ordinary on the Twenty Fifth day of August. 2001. Dated: 6th September. 1993 or Malnad Area Development Board constituted under the Madnad Area Development Board Act. V. 2001 (2001pâ dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 21) be published in the official Gazette under clause (3) of Article 348 of the Constitution of India. Town Municipal Councils or Town Panchayats constituted under the Karnataka Municipalities Act. 1991 or the Bayaluseeme Development Board constituted under the Bayaluseeme Development Board Act. (ee) where the procurement of goods or services is by the Grama Panchayats and Taluk Panchayats constituted under the Karnataka Panchayat Raj Act. 1987. 1993. 1964 or Urban Development Authorities constituted under the Karnataka Urban Development Authorities Act. Ramadevi Governor of Karnataka By Order and in the name of the Governor of Karnataka M. (ii) in case of goods or services other than construction works the value of which doest not exceed rupees one lakh. 1994.(I) in case of construction works of all types the value of which does not exceed rupees five lakhs. and (ii) for other purposes and the value of such procurement does not exceed rupees one lakh" The above translation of dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°.49 Karnataka Area Development Board Act.(i) for the purpose of implementing mini water supply scheme or construction of school rooms and the value of such procurement does not exceed rupees two lakhs.R.S. Hegde Secretary to Government Department of Parliamentary Affairs and Legislation . 2001. or any Board. PWD 33 FC-III/2001.2001 2. i) In case of construction works of all types the value of which does not exceed Rupees five lakhs.50 Notification No. 2001 vide Notification No ÉâªÀâXµÖE 33 µÖÉâ}â 2001 dated: 25.3. The Karnataka Transparency in Public Procurement rules. (i) Whether piece work can be taken up within the limit mentioned in Amended Act? . 4... Body or Corporation established by or under any law and owned or controlled by the Government or Zilla Panchayats City Municipal Corporations or city Municipal Councils or the Hyderabad Karnataka Areas Development Board or Madnad Area Development Board or the Bayaluseeme Development Board. 1999 called KTPP (Amendment) Act. dt: 21.10. State Government Undertakings.2000. Where the procurement is made by the Government Departments. PWD 33 FC-III/2001: dt: 21. other than the construction works. the value of Which does not exceed Rupees one lakh. ii) In case of the goods and services. The new clause (e) of Section 4 provides that. By the said amendment Act earlier clause (e) of Section 4 is substituted by new clauses (e) and (ee) 3. 1999 which came into effect from 4th October 2000.3.2001 The Government Departments the Public Sector Undertakings. The Finance Department has issued certain clarifications vide Circular No. Ref: Circular No. Further new clause (ee) of Section 4 Provides that the KTPP Act doest not apply Where the procurement of goods or services in by the Grama Panchayats and Taluk Panchayats Town Municipal Conucils or Town Panchayats or Urban Development Authorities (i) For the purpose of implementing mini water supply scheme or construction of school rooms and the value of such procurement doest not exceed Rupees two lakhs and (ii) For Other purposes and the value of such procurement does not exceed Rupees one lakh.8.2001 Published in Extraordinary Gazette dated: 25. and Autonomous institutions are aware of the Karnataka Transparency in Public Procurement Act. PWD/513/FC-III/2001 Bangalore: Dated: 29th October 2001 Sub: KTPP Act. 1999 and KTPP Rules 2000 Clarifications regarding new amendment of the Act. After the Amendment of the Act as stated above. 2000 have been published in the Karnataka Gazette (Part-IV-A) dated: 24.8. several Departments/Agencies have sought the Finance Department's clarifications of the following. Local Authorities. The procurement entities are aware of recent Amendment made to KTPP Act. the Act does not apply. 5. or Rs. has banned to take up works departmentally. 1 lakh (For Government Departments.e. 2001 is enclosed. Rupees Two lakhs as the case may be. The above points have been examined and following clarifications are issued. 5 lakhs (For Departments. order manuals bye laws official Memoranda. No. Local Authorities and also other institutions mentioned at para 3&4 above) As per this. (ii) Construction of work up to Rs. iii) The Amended Act allows exemption only from following provision of KTPP Act and Rules for following cases. while taking up construction work up to Rs. Hence. dt: 15. to the extent they are not inconsistent with the provisions of the Act and unless and until superceded by anything done or any action taken or any rule.51 (ii) Whether departmental work can be taken up within the limit mentioned in the Amended Act? (iii) Whether tender procedures to be followed for procurement within the above limit and whether exemption is allowed only for publication of tender bulletin and other procedures as per KTPP Act? (iv) The procedures to be followed for the procurement within the limit given in the Amendment i. . Local Authority and if there is no ban order. 5 lakhs. Government Department and other institutions mentioned can purchase materials only up to Rs. For Ex: Water Resources Dept. PWD 1 FCR 93. Circulars or any other order made or issued before the commencement of this Act and in force on the date or such commencement providing for or relating to any of the above matters for the furtherance of which this Act is enacted shall continue to be in force and effective as if they are made under the corresponding provisions of this Act. is made under this act.e. before the commencement of this Act shall continue to be followed.O. i) Sec 26 of the KTPP Act. (1) Construction of works upto Rs. However for taking up construction works below Rs. 5 lakhs or Rs. (3) For procurement of goods and services up to Rs. A comparative chart showing provision existed under Section 4(e) of KTPP Act.12. 5 lakhs. 1 lakh normal tender procedure needs to be followed. 6.2 lakhs as the case may be. the procedure followed earlier i. Local Authorities and other Agencies mentioned at para 3 above). Psus. 1999 provides as follows: "All rules regulations orders. 1 lakh as specified in PWD code and G. Psus. 2 lakhs as the case may be taken up if it is allowed in Departments.1994 and not beyond it." Therefore wherever the KTPP Act does not apply the provisions of already practiced procedure in force before coming in to force of the Act shall continue to be followed. Rupees Five lakhs. Piece work is allowed only up to limit of Rs. 1 lakh without following procedures of KTPP Act/Rules. (2) For implementing mini water supply scheme or construction of school rooms up to Rs. notifications departmental codes. 2 lakhs as the case my be and for procurement of goods and services below Rs. Psus. Rs. notification or order. 1999 and provision existing under Section 4(e) and 4(ee) of KTPP (Amndt) Act. 2 lakhs (For Local Authorities mentioned at para 4 above). 2 and 3 of (iii)] only the provision of KTPP Act/Rules doest not apply. codal provision and normal tender procedure which were followed prior to commencement of KTPP Act/Rules have to be followed. but normal departmental rules. PSUs.52 In the above cases Government Departments. . Local Authorities and other organisations as mentioned above shall follow all required normal tender/purchase procedures which were followed prior to commencement of the KTPP Act. Gopal Reddy ACS & Principal Secretary to Government Finance Department. but only the exemption is given from following the provisions of KTPP Act/Rules. regulations. C. (iii) In all the cases referred to above [1. 00 lakh Upto Rs.00 lakh Upto Rs. 1. 15.00 Upto Rs.00 lakhs (for Mini Water supply scheme & school buildings) Upto Rs.00 lakhs Upto Rs. 1999 and provision as existing under Section 4(e) and 4(ee) of KTPP (Amendment) Act.00 lakhs (for Mini water Supply Schemes & School buildings) upto Rs.00 lakhs Upto Rs.2. 5.00 lakh (for other works) Upto Rs.00 lakhs (for Mini Water supply scheme & school buildings) Upto Rs.1.00 lakh upto Rs.1.00 lakhs Nil Upto Rs.53 Comparative chart regarding provisions that was existed under Section 4(e) of KTPP Act.00 Provisions existed under Section 4(2) of KTPP Act 1999 Civil Construction works Up to Rs. 2. 1. Boards Corporation Zilla Panchayats City Municipal Corporations City Municipal Councils.00 lakhs Upto Rs.00 lakh (for other works) Procurement of goods Upto Rs. Town Panchayats and Urban Development Authorities Provision existing under Section 4(e) and 4(ee) of KTPP (Amendment) Act.1.00 lakhs Nil Procurement of goods . 1. Town Municipal Councils. 1. 2001.5. 5.00 lakh (for other works) Upto Rs. 2000 Civil Construction works Upto Rs.2. Procurement entities Govt. 5. HKDB MADB.1.1. BSDB Grama Panchayats Taluk Panchayats. Departments State PSUS.00 lakhs Upto Rs. ¬}Öªdâ 21. ÉâªÉêLgâÔâ° ÀâXdâK~âÚûpâ°Àâ/d곩îpâ°Àâ %«~ÖZÌâ°gâÔâ dâ°îyâªyê ~âîú©¶û dêÔâdÖ¹û{â ÉâR¸D©dâpâxgâÔâ}â°Q ¾©vâÈÖÐ{ê.10.2001}â°Q dâ}ÖËrdâ Ƶê©Íâ pÖmX ~âyâZ ¬}Öªdâ: 25. 2. o É⪱ª|â A¼Ëdâ EÈÖfêΰª{â Éâ°yê³K©Èê ÉâªfêX: È곩E 33 Ad곩¥3/2001. ¬}Öªdâ 21. dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê ¾Ìâ°Àâ°gâÔâ°. pÖmX ÉâdÖËpâ{â I¬MÀê°gâùª{â %zâÀÖ dÖ}â³¾}â Àâ°³·dâ %zâÀÖ %{âpâÚÌâ°¶[ ÉÖLÄyâÀÖ{â ÉâdÖËpâ{â avêyâ}â %zâÀÖ ¾Ìâ°ªyâZx{â¶[pâ°Àâ ÌâÃÖÀâó{ê© Àâ°ªvâù %zâÀÖ ¾gâÀâ°¬ª{â ÊÈÖ[~âªkÖÌâ°yÒgâÔâ° }âgâpâ Àâ°°¾û~âÈÒ dÖ~êòËpê©Íâ}ÒgâÔâ° %zâÀÖ }âgâpâ Àâ°°¾û~âÈÒ dñ¾bÈÒgâÔâ° %zâÀÖ Ýêô{âpÖÏÖ{Ò dâ}ÖËrdâ %«À⽬P Àâ°ªvâù. gÖZÀâ° ~âªkÖΰ»gâÔâ° Àâ°yâ°K yÖ·³[dâ° ~âªkÖΰ»gâÔâ°. ¬}Öªdâ 25. 2000 gâÔâ}â°Q ÉâÝÖ ¬}Öªdâ 24.3.2001pâ¶[ dê·Àâó ÉâR¸D©dâpâxgâÔâ}â°Q ÉâÝÖ ¾©vâÈÖÐ{ê. ÉâdÖËpâ{â EÈÖfêgâùª{â. ÉÖÀâËm¾dâ I¬MÀê°gâùgê. 5. IÈê[©Ù: Éâ°yê³K©Èê ÉâªfêX: È곩E 33 Ad곩-3/2001.3. (ii) Eyâpê ÌâÃÖÀâó{ê© I{êM©µâdÖ"Ð Éâpâdâ° Ù ÉâªgâZÝâÇÖ ÀâÉâ°K %zâÀÖ Éê©ÀêÌâ° ÀâÃñ·X aª{â° ·dâ_ pâ³~Öΰgâùgê Æ°©pâ{⪻{âMpê. -%{ê© î©» dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) dÖÌê°MÌâ° Ýê³Éâ I~ⱪ|â{â dâ·ª 4(EE) ~âZdÖpâ dÖÌê°MÌâ°° ÉâdÖËî EÈÖfêgâÔâ°/ÉâªÉêLgâÔâ° dêÔâgê dÖ¹û{â Éâª{âÅâËgâÔâ¶[ dÖÌê°M %}â]ΰÉâ°Àâó¬·[ Uª{â° »ùÉâÈÖÐ{ê.8. .2001 1. Ýê³Éâ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê dÖÌê°M.11. UÈÖ[ Éâpâdâ° Ù ÉâªÉêLgâÔâ° %ºÉâ³kâ}ê ÉâªfêX: È곩E 33 Ad곩¥3/2001. 4. dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê dÖÌê°M 1999}â°Q Adê³D©±pÒ 4.2001pâ¶[ ~âZdâr~âÚûpâ°Àâó{â}â°Q ÉâÝÖ gâÀâ°¾ûpâ±Ýâ°{â°. 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ÉâLù©Ìâ° ÉâªÉêLgâÔâ gâÀâ°}âdê" ogÖgâÈê© ±ª¬{ê. 2000 îª{â uÖîgê ±ª¬pâ°Àâó{â° UÈÖ[ ÉâdÖËî EÈÖfêgâùgê. 3. ~ârDx ~âópâÉâÅêgâÔâ° %zâÀÖ ~ârDx ~âªkÖÌâ°»gâÔâ° %zâÀÖ }âgâpÖ«À⽬P ~ÖZºdÖpâgâÔâ° dêôgê³Ôâ°\Àâ (i) ÌâÃÖÀâó{ê© Ñpâ° ¾©pâ° Éâpâ±pÖm° Ì곩m}êÌâ° %}â°ÍÖD}â %zâÀÖ µÖÈÖdê³tâÚgâÔâ ¾ÀâÃÖËx{â dÖÀâ°gÖîÌâ° Àêkâ+ Upâvâ° ·dâ_ pâ³~Öΰgâùgâ³ Æ°©pâ{⪻{âMpê.54 Éâª: È곩E:513:Ad곩 3:2001 ¬}Öªdâ 19. o É⪱ª|â Àê°©ÈÖ"¹û{â dÖÌê°Mgê »{â°M~âÚ ÀâÃÖÚ{â }âªyâpâ Ýâ·ÀÖpâ° EÈÖfêgâÔâ°. EÈÖfÖ Éâªþyê.12. A{â°{âîª{â Y{â° ·dâ_ pâ³~Öΰ %zâÀÖ Upâvâ° ·dâ_ pâ³~ÖΰgâÔâ ÀâpêÐ}â dÖÀâ°gÖîgâÔâ}â°Q dêôgê³Ôâ°\ÀÖgâ ÝÖgâ³ aª{â° ·dâ_ pâ³~ÖΰgâÔâ Àâpêgê Éâpâdâ° Ù %zâÀÖ Éê©ÀêgâÔâ}â°Q ~âvêÌâ°°ÀÖgâ ÂêªvâpÒ ¾Ìâ°Àâ°gâÔâ}â°Q ~Ö¶ÉâÏê©dâ°.'' (×pâªÊ©Æ ûªgÒ) ÉâdÖËpâ{â ~âZ|Ö}â dÖÌâ°Ë{âúË. ÉâdÖËî A{ꩵâgâÔâªyê dâZÀâ° mpâ°ÐÉâÏê©dâ° Uª{â° ÉâRÍâD~âÚÉâÈÖÐ{ê. Y{â° ·dâ_ pâ³~ÖΰgâÔâ %zâÀÖ Upâvâ° ·dâ_gâÔâ Àâpêgê dêôgê³Ôâ°\Àâ dÖÀâ°gÖîgâÔâ ±gê$ ÝÖgâ³ aª{â° ·dâ_ pâ³~ÖΰgâÔâ ÀâÃñ·X{â Àâpêgê ÙÉâ°Àâ/dêôgê³Ôâ°\Àâ dÖÀâ°gÖîgâÔâ ±gê$ ÝÖgâ³ aª{â° ·dâ_ pâ³~ÖΰgâÔâ ÀâÃñ·X{â Àâpêgê ÙÉâ°Àâ/~âvêÌâ°°Àâ Éâpâdâ°/Éê©ÀêgâÔâ Éâª{âÅâË{â¶[ ogÖgâÈê© uÖîÌâ°¶[pâ°Àâ ¾Ìâ°Àâ°gâÔâ}â°Q EÈÖfÖ ÉâªþyêgâÔâ° ÉâdÖËî A{ꩵâ/Éâ³kâ}êgâÔâªyê dâZÀâ° dêôgê³Ôâ\Ïê©dâ°. 1999pâ dâ·ª 26pâ¶[ »ùû{âªyê Éâ{âî dÖÌê°M %}â]ΰÉâ¬pâ°Àâ Éâª{âÅâËgâÔâ¶[ o dÖÌê°M uÖîgê ±pâ°Àâ Àâ°°}âQ EÈÖfêÌâ°¶[ ~Ö¶Éâ°»K{âM ¾Ìâ°Àâ°gâÔâ°. »{â°M~âÚ dÖÌê°MÌâ°¶[ »ùûpâ°Àâ ~âZdâpâxgâÔâ É⪱ªºû{âªyê dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêÌâ°¶[ ~Öpâ{âµâËdâyê dÖÌê°M. ¾gâÀâ°. ¾Ìâ°Àâ°gâÔâ°. .1994pâ ~âZdÖpâ aª{â° ·dâ_ pâ³~ÖΰgâÔâ Àâpêgê ÀâÃÖyâZ È곩d곩~âÌ곩РEÈÖfêÌâ°¶[ yâ°ªvâ°gâ°»Kgê ¾©vâ·° %ÀâdÖµâ Epâ°yâK{ê. 2000 I~ⱪ|âgâÔâ}â°Q ÀâÃÖyâZ ~Ö¶ÉâÏêdÖз[. A¼Ëdâ EÈÖfê. A{ꩵâ EyÖX¬gâÔâ° ~Ö¶ÉâÏê©dÖgâ°yâK{ê Uª{â° »ùÉâÈÖÐ{ê. 1999 ÝÖgâ³ ¾Ìâ°Àâ°gâÔâ°. o ±gê$ dÖÌê°MÌâ°¶[ o Àâ°°ªkê E{âM %ÀâdÖµâ ÝÖgâ³ »{â°M~âÚ }âªyâpâ ÀâÃÖvâÈÖ{â %ÀâdÖµâ{â ÆÀâpâgâÔâ}â°Q ·gâ»Kû{â ~âsDÌâ°¶[ dÖ¹û{ê. A ~âZdÖpâ Àê°©Èê »ùû{â dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêÌâ°¶[ ~Öpâ{âµâËdâyê dÖÌê°M %}â]ΰÉâ{ê Epâ°Àâ Éâª{âÅâËgâÔâ¶[ dâ·ª 26 pâ ~âZdÖpâ dâZÀâ° mpâ°ÐÉâÏê©dâ°. ¬}Öªdâ: 15. ÉâdÖËî A{ꩵâ Éâª:Ävâ±³[ XÚ 1 UÁÒûApÒ 93.55 ``dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêÌâ°¶[ ~Öpâ{âµâËdâyê dÖÌê°M. ÝÖgêÌê°© Y{â° ·dâ_ pâ³~ÖΰgâÔâ° %zâÀÖ Upâvâ° ·dâ_ pâ³~ÖΰgâÔâ ÀâpêÐ}â dÖÀâ°gÖîgâÔâ}â°Q EÈÖfÖ Àâ»Î°ª{â ¾ÀâËþÉâ·° É⪱ªºû{â EÈÖfêgâÔâ¶[ ÉÖ]Ìâ°yÒ ÉâªÉêL. Àâ°ªvâùgâÔâ¶[ %ÀâdÖµâ E{âMpê dâZÀâ° yêgê{â°dê³Ôâ\±Ýâ°{ÖÐ{ê. Eªzâ Éâª{âÅâËgâÔâ¶[ ÂêªvâpÒ ~âZÑZÌê°Ìâ°ªyêÌê° dâZÀâ° dêôgê³Ôâ\Ïê©dâ° ÝÖgâ³ dÖÌê°MÌâ° dâ·ª 26 pâ¶[ dÖ¹ûpâ°Àâ EÈÖfÖ Éâªþyê. Éâª.00 ·dâ_ pâ³.00 ·dâ_ pâ³.Éâª.gâÔâ Àâpêgê Àâ°ªvâù. ÉâªgâZÝâÇÖ ÉâªÉêLgâÔâ° dâ.~Ö.00 ·dâ_ pâ³.gâÔâ Àâpêgê Eyâpê dÖÀâ°gÖîgâÔâ ±gê$) 1.gâÔâ Àâpêgê 2 ·dâ_ pâ³. %ÀâdÖµâ ÀâÃÖÚp⶷[ %ÀâdÖµâ ÀâÃÖÚp⶷[ 5.00 ·dâ_ pâ³.gâÔâ Àâpêgê 1. 1999 dâ·ª 4(E) %ÚÌâ°¶[ o Àâ°°ªkê E{âM %ÀâdÖµâgâÔâ° ÝÖgâ³ }âªyâpâ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê dÖÌê°M (»{â°M~âÚ) dÖÌê°M.ÉÖ.00 ·dâ_ pâ³.00 ·dâ_ pâ³. }âgâpâ Àâ°°¾û~âÈÒ dÖ~êòË©pê©Íâ}ÒgâÔâ°.gâÔâÀâpêgê (Ñpâ°¾©pâ° Éâpâ±pÖm° Àâ°yâ°K µÖÈÖ dârDvâgâÔâ dÖÀâ°gÖîgâÔâ ±gê$) 1 ·dâ_ pâ³. ~ârDx ~âªkÖΰKgâÔâ° Àâ°yâ°K }âgâpÖ«À⽬P ~ÖZºdÖîgâÔâ° 2 ·dâ_ pâ³.gâÔâ Àâpêgê 5.00 ·dâ_ pâ³. ¾gâÀâ°gâÔâ° ÊÈÖ[ ~âªkÖÌâ°yÒgâÔâ°.gâÔâ Àâpêgê 5. Àâ°Èê}Övâ° %«À⽬P Àâ°ªvâù Ïêô·° û©Àê° %«À⽬P Àâ°ªvâù gÖZÀâ° ~âªkÖΰKgâÔâ°.ÉâÖ. dÖÌê°M 2001pâ dâ·ª 4(E) Àâ°yâ°K 4(EE) pâ¶[ Epâ°Àâ %ÀâdÖµâgâÔâ° ¾ÀâÃÖËx dÖÀâ°gÖîgâÔâ° ¾ÀâÃÖËx dÖÀâ°gÖîgâÔâ° Éâpâdâ°gâÔâ Ù Éâpâdâ°gâÔâ Ù ÉâdÖËî EÈÖfêgâÔâ° 5. 2001pâ¶[ dâ·ª 4(E) Àâ°yâ°K (EE) pâ¶[ ÀâÃÖvâÈÖ{â %ÀâdÖµâgâÔâ ±gê$ Ý곩¶dê ~âsD.gâÔâ Àâpêgê 5.gâÔâ Àâpêgê 1.00 ·dâ_ pâ³.gâÔâÀâpêgê (Ñpâ°¾©pâ° Éâpâ±pÖm° Àâ°yâ°K µÖÈÖ dârDvâgâÔâ dÖÀâ°gÖîgâÔâ ±gê$) 1 ·dâ_ pâ³. ûs Àâ°°¾û~âÈÒ dñ¾bÈÒgâÔâ°.gâÔâ Àâpêgê 1.gâÔâ Àâpêgê 1.00 ·dâ_ pâ³.56 dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê dÖÌê°M.00 ·dâ_ pâ³.00 ·dâ_ pâ³.gâÔâ Àâpêgê 2 ·dâ_ pâ³.gâÔâ Àâpêgê (Ñpâ°¾©pâ° Éâpâ±pÖm° Àâ°yâ°K µÖÈÖ dârDvâgâÔâ dÖÀâ°gÖîgâÔâ ±gê$) 1 ·dâ_ pâ³.gâÔâ Àâpêgê .gâÔâ Àâpêgê 5.gâÔâ Àâpêgê Eyâpê dÖÀâ°gÖîgâÔâ ±gê$) 1.dÖÌê°M 1999pâ dâ·ª 4(E) pâ¶[ E{âM %ÀâdÖµâgâÔâ° dâ. ~ârDx Àâ°°¾û~âÈÒ dñ¾bÈÒgâÔâ°.gâÔâ Àâpêgê Eyâpê dÖÀâ°gÖîgâÔâ ±gê$) 1.00 ·dâ_ pâ³. Ýêô{ÖZÏÖ{Ò dâ}ÖËrdâ %«À⽬P Àâ°ªvâù.gâÔâ Àâpêgê 1. yÖ·³[dâ° ~âªkÖΰKgâÔâ°.00 ·dâ_ pâ³.00 ·dâ_ pâ³gâÔâ Àâpêgê pÖmX ÉÖÀâËm¾dâ I¬MÀê°gâÔâ°. dt: 21.reg. 21. .6 & 7 of KTPP rules. 2000 for publishing Nil report of tender bulletin. then a 'Nil' report be published and circulated.2001 at para 2 it was asked that if a particular week there is no information to publish in tender bulletin. 1999 and Rules. Ref: Circular No. Now the Dept. PWD 33 FC-III/2001.57 Notification No. "If in a particular week there is no information to publish in the tender bulletin. All the Tender Bulletin Officers are hereby informed that they should not publish and circulate Nil report of tender bulletin if there is no information in a particular week. PWD 33 FC-III/2001 Dt. CHIRANJEEVI SINGH Principal Secretary Finance Department. Printing of 'Nil' Bulletin. It is therefore considered to delete the following from para 2 of the circular. 10th December 2001 CIRCULAR Sub: Clarifications regarding Karnataka Transparancy in Public Procurement Act. PWD 33 FC-III/2001 Bangalore. of PA&L has opined that there is no provision under Rule 4. 2000 . Dated.03.3.2001 In circular No. then a "Nil'' report be published and circulated". The unit may be placed directly under the Principal Secretary in the Finance Department. Special Officer & Ex-officio Deputy Secretary PWD (Finance Cell) 6. Finance Department. 1. it was agreed to have a Central Unit for framing policies. DATED 15th DECEMBER 2001. PWD 1359 SO.58 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA No. Principal Secretary Finance Department Chairman 2. The unit shall monitor the implementation of the KTPP Act and Rules interpret their provisions.9. Standard Tender Documents and other policy directives.FC/2001. Representative of Public works Department member 3. Accordingly a Procurement Cell has to be created in the Finance Department. it was recommended that a central unit may be set up to be solely responsible for framing policy and rules and for oversight of public procurement. Rules and Supervisions of procurement. In the meeting held on 29. issue clarifications and generally provide guidance in their implementation and receive feedback and periodic reports on the progress of implementation. Representative of Department of Parliamentary Affaris & Legislation 5. Rules. The Unit shall also be responsible to prepare and issue the set of Standard Tender Documents. Secretary (Expenditure). In the circumstances explained in the preamble. Dated. PWD 33 FC-III/2001 Bangalore. GOVERNMENT ORDER NO. BANGALORE. Representative of Law Department member 4. Finance Department member Member Secretary . Government are pleased to create The Procurement Cell in the Finance Department. 10th December 2001 Sub: Creation of a Procurement Cell in the Finance Department. as here under. After one year the ACS agreed to have a statutory authority creation with technically qualified people from different departments and it can be monitored electronically WEB pages through internet etc. Preamble : In the Country Procurement Assessment Report (CPAR). The Unit should have a web page in which it will publish the Act. Hence this order.2001 under the Chairmanship of the then ACS & Principal Secretary. To start with a committee consisting of an engineer member. Finance member and a Law representative may be formed as a procurement cell in the Finance Department for one year. By Order in the name of the Governor of Karnataka M.N.59 The above procurement cell will have a tenure of One year from the date of issue of this Order. Seshappa Special Officer & Ex-officio Deputy Secretary to Government PWD (Finance Cell). . 2001-2006 issued by the GO No. Ref: 1) Notification No. 2) The lowest bids by the SSI unit within the 15% price preference range shall be deemed to be the lowest evaluated price and shall be given preference for awarding the tender. PWD 389 FC-3: 2001 dated 30. 2. CI 167 SPI 2001 dt.8.1. Therefore following clarifications are issued in respect of the above notification relating to 15% price preference to be considered while determining the lowest evaluated price in respect of small scale industries for finalizing the tender. Note No. 2) U. In the said notification it was indicated that for a period of 5 years from 1. 2000clarification reg.PWD/389/FC-3/2001 Dated 30-08-2001.2001 was issued. PWD 389 FC-3/2001(part) Karnataka Government Secretariat.2002 CIRCULAR Sub: Price preference to SSI units-Amendment to KTPP Rules. The C&I Dept. of Parlimentary Affairs and Legislation and the Notification No. CI 167 SPI 2001 dated 30th June 2001 while determining the lowest evaluated price. It appears that many procurement entitles have been interpreting differently. the above notification and this has affected the finalisation of the tenders. Accordingly the matter was examined in consultation with the Dept.D to modify the notification dated 30-8-2001 relating to 15% price preference to the Small Scale Industries as it is affecting a large number of SSI units while quoting for tenders along with Large & Medium Industries from within and outside the state. has requested to amend the KTPP Act. . the 15% price preference should be calculated on the basis of the lowest quoted rate if it is quoted by a large or a medium industry/SSI of another State. Vidhana Soudha.60 GOVERNMENT OF KARNATAKA No.01. Bangalore. 1) Upto 15% price preference for evaluation should be allowed to SSIs of the state who have quoted in the same tender application. The C&I Dept. In rule 25 of KTPP Rules.O. 1999 to consider the tenders of the small scale industries of the state by giving 15% price preference as announced in the new industrial policy.4.2001 small scale industries of the state shall be given 15% price preference in accordance with the New Industrial policy. has requested the F. As per the said rule the lowest quoted tender only should be accepted.02. 2000 it is mentioned about the procedures to be followed for determination of the lowest evaluated price. dated 30. Accordingly all the procurement entitles are hereby asked to follow the above procedure. Rs. Finance Department .115 Range of price preference is upto Rs.108 Rs.100 Rs.61 3)The following Illustration is given to make it clear: L1 L2 L3 L4 L&MI/SSI. ie.112 Rs. of SSI.115.108 as it is the lowest evaluated price. Tender is to be awarded to L2 at Rs.100+15% of Rs.100. of SSI of SSI of another state the state the state the state Rs. The SSI units L2. Chiranjiv Singh Principal Secretary to Govt. L3 and L4 are eligible to be considered. while determining the lowest evaluated price of SSI units of state. . o î©» ¾©Ú{â ÀâÃÖþ»gâÔâ}â°Q ÀêkÒÉêôÂÒ}â¶[ ~âZdâsÉâ·° dâZÀâ° mpâ°ÐÉâÈÖgâ°Àâó{â°. A{â°{âîª{â E}â°Q Àâ°°ª{ê UÈÖ[ ÊÈÖ[ Âêªvâpâ° ±°Èês}Ò:pÖmX Âêªvâpâ° ±°Èês}Ò %ºdÖîgâÔâ° É⪱ª|â~ârD ÊÈÖ[:pÖmX Âêªvâpâ° ±°Èês}Ògê É⪱ªºû{â ~âòxË ÀâÃÖþ»gâÔâ}â°Q ~Ö[ÄÌâ°¶[ ÀÖyÖË Àâ°yâ°K ~âZkÖpâ EÈÖfê ¾{êË©µâdâîgê dâÔâ°þÉâ°Àâªyê Éâ³×ÉâÈÖÐ{ê.2001 dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ° 4(1) Àâ°yâ°K 4(2) pâ ~âZdÖpâ ~âZ» EÈÖfêgê ÝÖgâ³ ÊÈê[gê É⪱ªºû{âªyê Àâ°yâ°K Éê©ÀêgâÔâ ~âòpêôdêgÖÐ ÊÈÖ[ Âêªvâpâ° ±°Èês}Ò : pÖmX Âêªvâpâ° E{âMpê ÀâÃÖyâZ) dê³}êÌâ° ~âdâ_ aª{â° ÏÖî ~âZdâsÉâÏê©dÖÐpâ°yâK{ê.62 Éâª: È곩E:84:Ad곩 3:2001 ÏêªgâÔâ³pâ° ¬}Öªdâ 25. ¬}Öªdâ 21. o Éâ³kâ}êgâÔâ}â°Q dâr°D ¾ÂÖDÐ ~Ö¶Éâ·° d곩î{ê.03. ¾Ìâ°Àâ°gâÔâ° 2000{â ¾Ìâ°Àâ° ¾ÀâÃÖËx Àâ°yâ°K Éâpâdâ°gâÔâ Éâpâ±pÖm° ±°Èês}Ò}â°Q ~âZ» ÀÖpâ{â¶[ (ÀâÃÖþ» ~âZdÖpâ dâZÀâ° mpâ°ÐÉâ·° ogÖgâÈê© ogâ ÊÈÖ[ Âêªvâpâ° ±°Èês}Ò Àâ°yâ°K pÖmX ÂêªvâpÒ ±°Èês}ÒgâÔâ}â°Q ÀêkÒÉêôÂÒ}â¶[ ÉâÝâ ~âZdâsÉâ·° »©ÀâÃÖ˾ÉâÈÖÐ{ê.û. A IÈê[©Øyâ Éâ°yê³K©ÈêÌâ°¶[ Éâ³×ÉâÈÖÐyâ°K.3:2001.02.Ú. A¼Ëdâ EÈÖfê. A{â°{âîª{â ÉâdÖËpâ{â ~âZ|Ö}â dÖÌâ°Ë{âúËgâÔâ°. 3-3 UÁÒ.vâ±³[ X. dÖÌâ°Ë{âúËgâÔâ° yâÀâ°W EÈÖfêÌâ° ÂêªvâpÒ ±°Èês}Ò %ºdÖîgâùgê Éâ³kâ}ê ¾©vâ·° d곩î{ê. (×pâªÊ©Æ ûªgÒ) ÉâdÖËpâ{â ~âZ|Ö}â dÖÌâ°Ë{âúË.2002 Éâ°yê³K©Èê ÆÍâÌâ°: dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê dÖÌê°M 1999 Àâ°yâ°K ¾Ìâ°Àâ°gâÔâ° 2000pâ ~âZdÖpâ ÀêÏÒ ÉêôÂÒ}â¶[ Âêªvâpâ° ±°Èês}ÒgâÔâ}â°Q ~âZdâsÉâ·° ~Ö[Ä Àâ°°fÖªyâpâ ÀâÃÖþ» Éâ¶[Éâ°Àâ ±gê$ IÈê[©Ù: Éâ°yê³K©Èê ÉâªfêX: Ä. 1999. ÊÈÖ[ ÂêªvâpÒ ±°Èês}Ò %ºdÖîgâÔÖ{â ÊÈÖ[ºdÖîgâÔâ° dâZÀâ° mpâ°ÐÉâ·° ÉâÝâ Éâ³×ÉâÈÖÐ{ê. 8. Venkararaman. Seshappa Special Officer & Ex-officio Deputy Secretary. K. Dr. Government is pleased to constitute a Standing Committee of the following Officers for implementation of the Procurement Reforms Action Plan on the recommendations of CPAR Karnataka. Secretary (Expenditure) Chairman Finance Department 2. Sri. IAS. P. Manoli.N. it was decided to constitute a Working Group Committee for implementation of the Procurement Reforms Action Plan on the recommendations of the Country. By Order and in the name Governor of the Karnataka M. Karnataka. Sri M.W. Joint Secretary. PWD 3. GOVERNMENT ORDER NO. Chief information Officer.N. DATED: 5th AUGUST 2002 In the circumstances explained in the Preamble. Convenor. The Committee shall start work immediately. PWD . Krishna Murthy. Kamala. Smt. Hence this Order. Sri A.N. Sri Tapan Senapathi I/c Director.N. Seshappa Special Officer & Ex-officio Deputy Secretary to Government PWD (Finance Cell). Finance Dept. The Committee shall make recommendations to the State Procurement Cell and for review and issue of orders/directives. (Finance Cell). Sri M. The Committee shall meet frequently and informally. Ashok Kumar C... H. Stores Purchase. BANGALORE. Read: Minutes of Preliminary meeding held on 15th May 2002 to start with the procurement reform process. 1. Special Officer. Shanta Raju. 7. Depending on the nature of the issues involved the committee shall cooperate other members/experts as and when needed. 6. Srinivasa. Computer Cell. Procurement Consultant World Bank. .C.D. Department 5. Law Department (Opinion) 4.63 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Procurement Reforms – Constitution of Standing Committee for implementation. Procurement Assessment Report (CPAR). PWD 1359 SO/FC 2001. discuss and examine all the aspect of the implementation of the Action Plan.S. Deputy Secretary. Preamble: In pursuance of the Standing Committee meeting held on May 15th 2002. PWD 3. . Chief Engineer. Joint Secretary. Sri.N.. Chief Information Officer. Controller. DATED: 14th AUGUST 2002 In the circumstances explained in the Preamble.W. Krishna Bhagya Jala Nigam Limited 6. Venkararaman. P. The Committee shall meet regularly and informally. BANGALORE. PWD . Consultant-1. I.M. Finance Dept. guidelines to be framed.S.D 4. Deputy Secretary. Sri. G. Sri Nagaraja Rao. and discuss all the draft tender documents. 7.64 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Procurement Reforms – Working Group for implementation Read: Standing Committee Meeting held on 14th August 2002 under the Chairmanship of Secretary (Expenditure). Shantharajanna.S. H. Rules Codal Provisions relating to Procurement of goods. Executive Director of Finance. Smt. Hence this Order. Karnataka. Shirol. Srinivasa.T. Law Department (Opinion) 5. Seshappa Special Officer & Ex-officio Deputy Secretary. Sources & Purchase. Procurement Assessment Report (CPAR). Sri. H. 8. Government is pleased to constitute a Standing Committee of the following Officers for implementation of the Procurement Reforms Action Plan on the recommendations of CPAR Karnataka. Kesari. Pashupathi. World Bank Chairman 2. GOVERNMENT ORDER NO. Material Management & Purchase. 9. Dr. Karnataka State Road Transport Corporation. Kamala. PWD 1359 SO/FC 2001. Sri Y. relevant Acts. Executive Engineer. (Finance Cell). 1. Cell. R.N. Karnataka. it was decided to constitute a Working Group Committee for implementation of the Procurement Reforms Action Plan on the recommendations of the Country.R. Convenor. Govindaraju. K. Sri C. Preamble: In pursuance of the Standing Committee meeting held on August 14th 2002. Sri M. Karnataka Neeravari Nigam Limited. Sri A. Controller State Accounts Department 10.N. Karnataka Power Transmission Corporation Limited. services & works so as to enable the Government for implementation of the Action Plan as per Country Procurement Assessment Report (CPAR).S. .N.65 The Committee shall make recommendations to the Standing Committee. Seshappa Special Officer & Ex-officio Deputy Secretary to Government PWD (Finance Cell). The Committee shall start work immediately. By Order and in the name of the Governor of the Karnataka M. 66 GOVERNMENT OF KARNATAKA NO. PWD 1359 SO/FC 2001(P-2) Karnataka Government Secretariat, Vidhana, Soudha, Bangalore, dated 25th October 2002 CIRCULAR Subject: Awarding of contracts to the lowest evaluated technically and Commercially responsive tenderer meeting the prescribed Qualification criteria including tender capacity and past Performance. It has come to the notice of the Government that some Procurement Entitles are adopting the practice of splitting the contract (particularly in Goods contracts) among all or some tenderers by offering the price of the lowest tenderer to others and dividing the quantity of Supply evenly or in other proportion. Such practices undermine the rationale of competitive bidding promote collusion and go against the provision of the KTPP Act and Rules. The provisions of the KTPP Act and Rules provide for only the acceptance of the lowest tender. The lowest evaluated responsive tenderer deserves the full award, if he has satisfied the stipulated qualifying criteria. The following Provisions in the KTPP Act and Rules are brought to the notice of all Procurement Entities: (1) Section 13 of the Karnataka Transparency in Public Procurement (KTPP) Act 1999 lays down that "The Tender Accepting Authority shall, after following such procedure as may be prescribed pass order accepting the tender and shall communicate the information relating to acceptance of tender together with a comparative analysis and reasons for accepting of tender to the procurement entity and Tender Bulletin Officer". (2) Rule 21, Chapter, VI of the KTPP Rules 2000 stipulates that "The Tender Accepting Activity shall cause the evaluation of tenders to be carried out strictly in accordance with evaluation criteria indicated in the tender documents" (3) Rule 24, details the procedure for the initial examination of tenders to determine substantial responsiveness. (4) Rules 25, explains the procedure of determination of the lowest evaluated price. (5) Rule 26(1) stipulates that "The tender Scrutiny Committee or the officer inviting the tender shall prepare detailed evaluation report which shall be considered by the Tender Accepting Authority before taking a final decision on the tender." (6) Rule 26(2) states that "As soon as the tenderer qualified to perform the contract is identified in accordance with Section 13 of KTPP Act, the Tender Accepting Authority shall pass order accepting the tender and communicate the order of acceptance to the successful tenderer...." 67 From the above provisions in the KTPP Act and Rules, it is clear that the Contract should be awarded only to the lowest evaluated technically and commercially responsive tenderer, who meets the prescribed qualification criteria including bid capacity and past performance. In view of the foregoing, the Government reiterates that when tenders are invited for a specified quantity of Goods, the contract should be awarded only to the lowest technically and commercially responsive tenderer who meets the prescribed qualification criteria including bid capacity and past performance. The above instructions shall apply to all Government Departments, Boards Corporations, Societies, Government Autonomous organizations, Universities, Panchayat Raj institutions, Municipal Corporations, Local bodies etc for which KTPP Act and Rules are applicable. All Procurement Entities shall ensure that the above instructions are followed strictly in respect of all contracts irrespective of the funding agency. It may be noted that any violation of the KTPP Act, 1999 and Rules, 2000 attracts the penal provision under Section 23 of the Act. The above instructions do not apply to tenders for fixing Rate Contracts, for which instructions would be issued separately. (Chiranjiv Singh) Principal Secretary to Government, Finance Department. 68 GOVERNMENT OF KARNATAKA NO. PWD 1359 SO/FC 2001(P-2) Karnataka Government Secretariat, Vidhana, Soudha, Bangalore, dated 25th October 2002 CIRCULAR Subject : Procurement Planning, Packaging and Scheduling and making Available funds to match with the requirement as per approved Procurement Plan. It is noticed that adequate attention is not given to Procurement Planning, which is an integral phase of Procurement process. Planning of packages is an important activity, which needs to be finalized before taking up a project for implementation. In most of the cases, planning of packages is not driven by the needs of the project (to ensure quality and timely completion to achieve the project objectives), but rather by the sanctioning powers, readiness of the designs, drawings and estimates at particular point of time, availability of contracts and their specialization, fund availability etc. The pros and cons of centralized and decentralized procurement, bulking of procurement (in respect of Goods), small versus big packages for works, packaging and slices do not seem to have been examined thoroughly in most of the projects. There are no approved Packaging Plans and Procurement Schedules (which determines the timing of the various procurement activities such as invitation of tender, sale of tender documents, receipt of tenders, preparation of evaluation report, award decision, signing of contract, period of achievement of milestones/delivery schedule, time of completion of works/supplies) for most of the projects. Usually the field officers decide on the packaging as the implementation of the project proceeds and invite tenders on that basis. All these lead to haphazard completion of works and commitment of scarce financial resources without realizing the project objectives. No specific codal provisions on this aspect exist. However, Para 192(b) of the KPWD Code volume I refers to the splitting of contracts. It reads as follows: "It is permissible to give out different contracts to a number of contractors relating to one work, even though such work may be estimated to cost more than the amount up to which the officers are empowered to accept the tenders. This splitting of the work should be resorted to only in exception cases, in the interest of the speedy execution of works or when the nature of the work is such that if any difficulty for a single agency to execute its various aspects, subject to obtaining prior approval of the authority who is competent to accept the tender for the work as a whole. In case more than one contract is awarded to the same contractor at the same time or one after the other the sanction of the authority who is competent to accept the total of such tenders and not the authority who can accept each tender with reference to value of each contract is to be obtained." The principle behind packaging appears to be the technical requirement, need for speedy execution, preparedness to invite tenders and the expected competition. In view of the above the following instructions are issued: to match the invitation of tenders. The above instructions shall apply to all Government Departments. and (7) The Procurement Plan and Schedule Should form the basis for working out requirement of funds and its release to the implementing Agency. II & III year shall be provided. the appropriate Method of Procurement and Procurement Schedule (Showing the timing of the various procurement activities) should be framed depending on the value of the packages. Government Corporations. (5) The Procurement Plan should be used to help all participants to the procurement process to understand the sequence and timing of the procurement action (stages). Finance Department. If the work is contemplated to be completed within a year full provision. Societies. (Chiranjiv Singh) Principal Secretary to Government. Semi Government Autonomous Organizations. Local Bodies. (4) The Procurement Plan should be used as a template for monitoring thus helping with timely recognition of problems and also in taking timely corrective action. their contributions and responsibilities at each stage and who is responsible at the next stage. (2) After the packages are decided and approved. . keeping in view the implementation Plan of the project. for which KTPP Act and Rules are applicable. bulking of procurement (for Goods) and small versus big packages for works. etc. No tender should be awarded without having grant as indicated. if within 2 years 40% and 60% for I & II year and if it is 3 years 30%. Authorities should ensure that these instructions are followed strictly in respect of all projects irrespective of the funding agency. (6) The Procurement Plan should be used to record the progress of planned action thus supporting monitoring of performance of the responsible unit and the staff. Universities. packaging and slices are to be thoroughly examined. (3) This Procurement Schedule should form the basis of the preparation of designs and specifications. Panchayat Raj Institutions. Municipal Corporations.69 (1) The pros and cons of centralized versus decentralized procurement. 40% and 30% for 1. in respect of Works Contracts.. 3. It is observed that the Tender Accepting Authorities of Government Departments. (a) Contracts where price Updated Estimated cost of the Work Rs. 1. single bid. After careful consideration of the practices being followed in the various organizations the following Guidelines are issued for conducting negotiations. before passing order accepting the tender in terms of Sub Para 3 under Section 13 of the KTPP Act.. It has to be recognized that: • Negotiations even with the lowest tenderer defeats the very ethics of competitive tendering and should not be resorted solely for the purpose of reduction of rates.... Upto Rs. dated 3rd December2002 CIRCULAR Subject: Guidelines of conducting negotiations before award of the contract. State Government Undertakings.. Autonomous bodies and Corporations established by or under law and owned and controlled by the Government.. Vidhana soudha. sometimes negotiate with the lowest tenderer. there is every possibility that the tenderer would have jacked up the prices considerably and would reduce the prices marginally to satisfy the Employer/Purchaser with the result that the Employer/Purchaser may in most cases ends up paying more than real cost of the work/goods.. Period of contract Update Estimated . 3.70 GOVERNMENT OF KARNATAKA NO. • When negotiations are conducted in a routine manner.PWD 1359 SO/FC 2001(P-2) Karnataka Government Secretariat. Work Price Adjustment . 20 lakhs.. • Negotiations very often leads to delay in award of the contracts. In such cases also.2 A substantially high tender is defined as under. Bangalore. suspected collusion... and • Negotiations opens up opportunities for corruptive practices.. such as lack of competition (less than three). 3. or where the lowest evaluated responsive bid is substantially above the estimated cost. the first choice is for rejection of all tenders and reinvnting fresh tenders. 2.. 50 lakhs and above 10% above the 10% above the 10% above the update estimate or updated* estimate updated* estimate .1 Negotiations solely for the purpose of obtaining lower prices would be appropriate only in exceptional circumstances. and provision of cost of the . if needed be.. Local Authorities... 2 and 3..2 above the Tender Scrutiny Committee or the Evaluating Officer as the case may be. if any. 3. 1 lakh .4 In respect of exceptional cases. specifications.1.2 above). updated* estimate 5% above the updated estimate or Rs. provisions in the Special Conditions of Contract or packaging.1 . 3.00. the Tender Scrutiny Committee or the Evaluating Officer as the case may be. If the Tender Scrutiny Committee or the Evaluating Officer is satisfied with the explanation by the tenderer it shall make its recommendation for the acceptance of the tender. specifications and conditions of contract and clarify any reservations if any to the prospective tenderers.5. who shall propose the changes.7 In respect of tenders which are determined high in terms of Para 3. 3.3 In all cases where the tenders amount is not substantially high (refer definition of substantially high given in Para 3. steel and other key materials. * Estimate based on the current rates of labour and materials such as cement. In case the proposal is for rejection and reinvitation.. The reservations if any pointed out by the prospective tenderers shall be made in the bidding documents. as listed in para 3.1 above (other then those that are considered substantially high).. (ii) get the break up of rates (s) from the lowest evaluated responsive tenderer and make a through examination of the reasonableness. where price adjustment is provided from the date of tenders Does not . to be made in the estimated cost.8 In case where the Tender Scrutiny Committee or the Evaluating Officer decides in favour of negotiation (in all exceptional cases listed in para 3. depending on the value of contract may choose to propose to the Tender Acceptance Authority to reject all tenders and reignite fresh renders or negotiate. 3. shall (i) identify the item (s) for which the rates are considered high and are contributing to the increase. before reinviting the tenders. shall be examined by the Tender Scrutiny Committee or the Evaluating Officer. 3. 3. Pre-tender conference shall be held to explain the qualification criteria.6 After reentering the tenders shall be processed as per 3.. depending on the value of the contract. the causes leading to the rejection.71 adjustment is not provided Rs. the Tender Accepting Authority shall pass orders accepting the lowest evaluated responsive and qualified tender only. whichever is more (b) Contracts Does not arise .000 which ever is more.3 above..5 The Tender Accepting Authority shall pass orders for reinviting tenders with changes if any on the tender document. 3. after analyzing the causes leading to the rejection of thenders. The Tender Accepting Authority shall after careful examination of the proposals approve the points (including the change in scope. for which separate instructions would follow. he shall seek the permission of the Tender Acceptance Authority. If the negotiations are successful and the Tender Accepting Authority accepts the recommendation of the Negotiating Committee. 3. specifications of the material input. If the tendered rate is considered unreasonable (one of the method of determining the reasonableness being the comparison with the market rate for the same brand and specification of equipment.1 The above instructions are applicable only to Works/Goods tenders received against notice inviting competitive tenders and not for Consultancy Proposals. a representative of the Tender Scrutiny Committee or the Evaluation Officer and Tender Accepting Authority.) negotiations shall be conducted with the lowest tenderer. Here also the first choice would be to reject and reinvite the tenders. 5. The procedure as outlined in Para 3.72 above). which may include adoption of revised procurement strategy (to include repackaging. since there are no Schedule of Rates and rates for equipment/goods satisfying the minimum functional requirements vary widely. specifications. The Committee shall submit the proceedings to the Tender Accepting Authority for taking decision.3 The above Guidelines shall not be applicable to tenders invited for Projects funded by International Financial Agencies or Projects covered under International Agreements for which the rules of funding agencies shall apply (Refer Section 3 of KTPP Act) . The Committee shall conduct negotiations on the approved points and make a record of the proceedings of the negotiations. the tender is accepted at the negotiated rates/terms and conditions and contract is concluded.) 4. It is also not applicable for tenders invited to fix rate contracts.8 above should be adopted scrupulously. 5. In respect of Procurement of Goods. award should generally be made to the tenderer who is technically and commercially responsive and meets the stipulated qualification criteria and who is determined to perform the contract satisfactorily.2 The above instruction shall apply to all Procurement Entities as defined in Section 2(d) Chapter I of the KTPP Act. packaging etc. depending upto the quality.7 and 3.) on which negotiations are to held. 5. the Tender Accepting Authority shall issue orders on the future course of action to be taken by the Tender Inviting Authority.0 5. execution by departmental forces/facilities etc. detailing the reasons and the points on which negotiations are proposed to be conducted. appoint a Negotiating Committee consisting of Tender Inviting Authority.9 If the negotiations fail. 73 6. It may be noted that any violation of the KTPP Act !999 and Rules 2000 attracts the penal provision under Section 23 of the Act.Procurement Entities shall ensure that the above Guidelines are followed strictly. . (Approved by Principal Secretary Finance Department) M.N. Seshappa Special Officer & Ex-officio Deputy Secretary to Government PWD (Finance Cell). 74 GOVERNMENT OF KARNATAKA NO. 1. turn over. licensed manufacturing capacity. PWD 1359 SO/FC 2001(P-2) Karnataka Government Secretariat. Vidhana soudha. which may render him incapable of satisfactorily completing the works/supplies on stipulated schedule. Except in the case of tenders of projects funded by International Financing Agencies. • There are no criteria to check the financial resources required. Though the tenderer might satisfy the specified criteria for a particular work/supply. dated 3rd December2002 CIRCULAR Subject: Verification of Qualification Criteria1 and Available Tender Capacity2 before award of contracts . the procurement entities are framing PQ documents with wide variation in the specified criteria. A study of some pre-qualification/Two-cover system documents and tender documents in respect of projects not funded by International Financing Agencies have reveled the following: • In the absence of a standard pre-qualification document and model qualification criteria. post qualification criteria is not specified.50 lakhs for which neither pre-qualification nor two-cover system are being adopted. possible value of works that could be executed/licensed Manufacturing capacity for supplies. equipment. contract awards are determined on the basis of Registration only. The 1 Minimum Qualification Criteria (turnover. financial status) • There is no provision for the check of 'Tender Capacity' of the tenderer by taking into account the maximum Value of the works/supplies completed in a year. . because of lack of resources and capability. value of work completed. the value of the balance commitment of works/supplies. equipment. tenderer might be awarded a number of contracts based on the requirements of registration in a particular Class and he may not be capable to execute them satisfactorily within stipulated time schedule. personnel. Bangalore. • There is no provision in the PQ document or tender document to check whether a tenderer who is pre-qualified/qualified for more than one work/supply tender satisfies the aggregate of the qualifying requirements (value of work completed. • In respect of works or supplies of value less than Rs. personnel and financial resources) to be satisfied for award of a contract and aggregate qualification Criteria to be satisfied if the tenderer is lowest in more than one contract 2 Available Tender Capacity of the tenderer is computed taking into account the maximum value of works executed/supplies made in a year. value of the existing works/supply commitments etc. he might have other work/supply commitments. 75 . The available tener capacity will be calculated as under...* price level) taking into account the completed as well as works in progress: N= Number of years prescribed for completion of the works for which tenders are invited B=Value at.. but below Rs.* price level... year (period of completion of the works for which the tenders are invited)" For Goods: "Tenderers who meet the minimum qualification criteria will be qualified only if their available Tender capacity is more than the total tender value.... the tenderer must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for the individual contracts... when the tenderer is lowest for more than one contract and also check the Available Tender Capacity5 of the 3 See Attachment I 4...50 lakhs should have post-qualification criteria...." 5.. (iii) The tender documents for works/supply estimated to cost more then Rs. Assessed Available Tender Capacity (A*N*I. The model clause that should be incorporated in the tender document could be as follows: "To qualify for a package of contracts made up of this and other contracts for which tenders are invited in this ITT (invitation for tenders).The model clause that should be incorporated in the tender document of works could be as follows: "Tenders who meet the minimum qualification criteria will be qualified only if their available Tender capacity is more than the total tender value. of existing commitments and on-going works to be completed during that next. The available tender capacity will be calculated as under: lowest evaluated responsive tenderer who satisfies the aggregate qualifying criteria.In view of the foregoing the following instructions are issued: (i) The qualification criteria to check the requisite resources required for the satisfactory performance of the contract should be appropriately incorporated in the pre-qualification and tender documents for works and goods3 (ii) The pre-qualification documents and the tender documents following Twocover system should have stipulations to check the aggregate of the qualifying criteria of the individual contracts. which have to be satisfied by the lowest evaluated responsive tenderer both for the aggregate qualification criteria as well as Available Tender Capacity before taking decision on the award of the contract. The tendere would be prequalified/award the contract only if he satisfies the aggregate qualification criteria and has the available tender capacity more than the value of the tender under consideration. .76 2.5-B) Where A=Maximum value of civil engineering works executed in any one year during the last five years (updated to.20 lakhs. 3. Attachment: Attachment I (Approved by Principal Secretary Finance Department) M..2 Authorities should ensure that these instructions are followed strictly in respect of all projects irrespective of the funding Agency. 4. Registration in appropriate class should be sufficient.N. years (period of completion of the supplies for which the tenders are invited)" . Procurement Entities shall ensure that the above Guidelines are followed strictly. 3. Assessed Available Tender Capacity = (A*N-B) Where A= Licensed capacity for the item of supply.1 The above instructions shall apply to all Procurement Entities as defined in Section 2(d) Chapter I of the KTPP Act..77 (iv) It is not necessary to separate incorporate qualification criteria in tender documents for works/supply whose estimate cost is less than Rs. Seshappa Special Officer & Ex-officio Deputy Secretary to Government PWD (Finance Cell).20 lakhs. N= Number of years prescribed for completion of the supplies for which tenders are invited B=Number of existing commitments to be supplied during the next. It may be noted that any violation of the KTPP Act 1999 and Rules 2000 attracts the penal provision under Section 23 of the Act.. (ii) Satisfactorily completed (not less than 90% of contract value)...................e... in at least two financial years................................. and (c) liquid assets and/or availability of credit facilities of no less than Rs............. Financial turnover and cost of completed works of previous years shall be given weight age of 10% per year based on the rupee Value of bring them to ............... as a prime contractor..........78 Attachment ........... The tenderer or his identified sub-contractor should have executed............ (usually 80% of the expected peak rate of construction for 3 or 4 critical items which account for more than 60% of the total cost of the work)............* price level * the financial year in which tenders are received..................... ....@ (usually not less than 50% of the estimated value of the contract)...... the following minimum quantities of work.................... a minimum annual financial turnover (in all classes of civil engineering construction works only) of Rs......................................................... (a) availability (either owned cr................. ... tested and supplied the equipment similar to the type..@ (usually not less than two times the estimated annual payments under the contract).................. (usually the equivalent of the estimated cash flow for 3 months in peak construction period) The model Clause for Goods contract could be as follows: (a) The tenderer should be a manufacturer who must have manufactured... ........ price level................ ** repeat for other items of works for which subcontracting would be allowed The tenderer should ... size and complexity .......................... or by procurement against mobilization advances) of the following key and critical equipment for this work: .... works** totaling to Rs......... (iii) Executed in any one year............ each tenderer in its name should have in the last five years i........ at least one similar work (Define) of value not less then Rs........... (b) availability for this work of a Project manager with no less than five years' experience in construction of similar civil engineering works and other key personnel with adequate experience as required...........@ in any one year @ at ......................... (i) Achieved..... lakhs (Credit lines/letter of credit/certificated from Banks for meting the funds requirements etc....I MODEL QUALIFICATION CRITERIA FOR WORKS AND GOODS The model Clause for Works contract shall be as follows: "To qualify for award of the contract... ..... ... can also be considered provided..%(indicate the percentage as considered as appropriate usually net les then 80% of the requirement) of the quantity required in any one of the last three years. installed and commissioned satisfactorily at least . of tender opening... us on the . us authorized representative/agent of a manufacturer meeting with the above requirements in full... (c) tenders of tenderers ..... and (ii) the tenderer as authorized representative.. . size and complexity specified in the Schedule of requirements in any one of the last three years and which must be in satisfactory operation for at least... M... Months on the date of tender opening..79 as specified in the Schedule of requirements up to at least. (b) The equipment offered for supply must be the most recent series models incorporating the latest improvement in design and must have been in satisfactory operation for a period not less then.. (i) the manufacturer furnishes authorization in the prescribed assuring full guarantee and warranty obligations as per GCC and SCC..%(indicate the percentage as considered appropriate usually not less than 30% of the requirement) of the quantity similar to the type.. has supplied........ 2000 (hereinafter referred to as the said rules). Title and commencement. scwerage.. (2) They shall come into force on the date of their publication in the Official Gazette. PWD/33/FC-3/2003. always provided that such deviation or alternate solution do not change the basic objective of the contract and that they meet the conceptual design or performance or functional specifications contained in the tender documents. the first stage unpriced tender being a technical tender only on the basis of conceptual design or performance specifications subject to technical as well as commercial clarifications and adjustments to be followed by amended tender documents and the submission of final technical proposals and priced tenders in the second stage". pumping stations. installation. namely:1. Amendment of rule 2. 2) First stage tender will consist of a technical tender only.80 Finance Secretariat Notification No..(1) In the case of 'turn-key' contracts involving supply. the following rule shall be inserted. the Government of Karnataka hereby makes the following rules further to amend the Karnataka Transparency in Public Procurement Rules. water. two-stage tender system may be adopted.. after clause (c). Insertion of new rule 28A. where it is undesirable or impractical to prepare a complete technical specifications in advance. process and trcatment plants and the like for power. Dated: 5th March 2003 In exercise of the powers conferred by section 25 of the Karnataka Transparency in Public Procurement Act. namely:"(d) "Two-stage Tender System" means a procedure under which tenders for turn-key contractors are invited in two stages. testing and comissioning of specially engineered plant and equipment such as turbines. 1999 (Karnataka Act 29 of 2000). boilers. the following shall be inserted. 2003. namely:"28A. 3. telecommunications. 3) The Tender Inviting Authority shall cause the first stage tender to be opened and evaluate whether the tenderer meets the required minimum acceptable qualification criteria.After rule 28 of the said rules. Two stage tender system.(1) These rules may be called the Karnataka Transparency in Public Procurements (Amendment) Rules. telecommunication and similar projects or procurement of equipment subject to rapid technological advances such as computer and communication systems. 2.In rule 2 of the Karnataka Transparency in Public Procurements Rules. switchyard. Bangalore.. 2000. whether the tenderer has submitted a technically responsive first stage tender and prepare a list of qualified and responsive tenderers. without reference to the rates and prices for completing the facilities and a list of deviations to the technical and commercial conditions set forth in the tender documents or any alternate technical solution as a tenderer wishes to offer and a justification therefore. . generators. 6) Only those tenderers who have submitted a technically responsive and acceptable first stage tender shall be invited to submit Second Stage Tender.R. . PWD (Finance Cell). and (b) the commercial tender. 7) The second stage tender shall consist of. 8) All second stage tenders must be accompanised by specified tender security. 10) The two stage tender shall be evaluated and awarded following the procedure specified in rules 25 and 26. By Order and in the name of the Governor of Karnataka K. BADIGER Under Secretary to Government. additions. 9) All second stage tenders (both technical and price) will be opened in the presence of tenderers or their authorised representatives. deletions and other adjustments.81 4) The Tender Inviting Authority shall convene a clarification meeting of all first stage qualified tenderers and review the tender's tender and prepare a memorandum of all required amendments. 5) The Tender Inviting Authority shall revise the tender documents and specifications to permit new technologies and introduce the right evaluation critcria.(a) an updated technical tender incorporating all the changes required by the tender Inviting Authority as recorded in the memorandum prepared in sub-rule (4) or as necessary to reflect any amendments to the tender documents issued subsequent to submission of the first stage tender. 82 ÉâªÉ⬩Ìâ° ÀâXÀâÝÖpâgâÔâ° Àâ°yâ°K µÖÉâ}â pâkâ}ê ÉâäÀÖ·Ìâ° %ºÉâ³kâ}ê ÉâªfêX ÉâªÀâXµÖE 05 µÖÉâ}â 2003. 2. 4 }ê© ~âZdâpâx{â »{â°M~âÚ :¥ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. 2003 dê" 2003 pâ ÀâÃÖkÒË 27 }ê© ¬}Öªdâ{âª{â° pÖmX~Ö·pâ aÄRgê {ê³pê»{â°M. 2003 pâ dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 4 (2003 pâ ÀâÃÖkÒË E~âRyêK©Ôâ}ê© ¬}Öªdâ{âª{â° dâ}ÖËrdâ pÖmX~âyâZ{â Ƶê©Íâ ÉâªädêÌâ°¶[ Àê³{â·° ~âZdârÀÖÐ{ê) dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. ÉâªÑ_~âK ÝêÉâpâ° Àâ°yâ°K ~ÖZpâªÅâ :¥ (1) o %º¾Ìâ°Àâ°Àâ}â°Q dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. 1999 }â°Q Àâ°yâKÍâ°D »{â°M~âÚ ÀâÃÖvâ·° aª{â° %º¾Ìâ°Àâ°. 1999 pâ (2000 {â dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 29) 4 }ê© ~âZdâpâx{â (Ú) Ùªvâ{â¶[ ``Upâvâ° ÀâÍâËgâùgê'' Uª± ~â{âgâùgê ``Àâ°³pâ° ÀâÍâËgâùgê'' Uª± ~â{âgâÔâ}â°Q ÌâÃÖÀÖgâ·³ ~âZ»Ì곩ÊÉâÈÖÐ{êÌê°ª{â° ÅÖÆÉâyâdâ"{â°M. 2003 (2003 pâ ÀâÃÖkÒË E~âRyêK©Ôâ}ê© ¬}Öªdâ{âª{â° dâ}ÖËrdâ pÖmX~Ö·îª{â %}â°Àâ°»Ìâ°}â°Q ~âvêÌâ°ÈÖÐ{ê) dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. Àâ°. ÅÖpâyâ gâxpÖmX{â YÀâyÖQ·"}ê© ÀâÍâË{â¶[ dâ}ÖËrdâ pÖmX Æ|Ö}âÀâ°ªvâ·¬ª{â o Àâ°°ª¬}âªyê %º¾Ìâ°Æ°yâÀÖgⶠ:¥ 1. 2003 dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê (»{â°M~âÚ) %º¾Ìâ°Àâ°. . dâ}ÖËrdâ pÖmX~Ö·pâ A{ꩵÖ}â°ÉÖpâ Àâ°yâ°K %Àâpâ ÝêÉâî}â¶[. ¬}Öªdâ 27 }ê© ÀâÃÖkÒË. ÏêªgâÔâ³pâ°. ÉâªÉ⬩Ìâ° ÀâXÀâÝÖpâgâÔâ° Àâ°yâ°K µÖÉâ}â pâkâ}ê EÈÖfê. 1999 }â°Q (2000 {â dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 29) Àâ°yâKÍâ°D »{â°M~âÚ ÀâÃÖvâ°Àâó{â° Ìâ°°dâKÀÖÐpâ°Àâó{âîª{â.pÖ. Ýêgâvê ÉâdÖËpâ{â dÖÌâ°Ë{âúË. 2003 Uª{â° dâpêÌâ°yâdâ"{â°M. (2) E{â° dâ³vâÈê© uÖîgê ±pâyâdâ"{â°M. ÉÖÀâÃÖ}âX »Ôâ°ÀâùdêgÖÐ E{â}â°Q 2003 pâ dâ}ÖËrdâ %º¾Ìâ°Àâ° ÉâªfêX 4 Uª±°{ÖÐ dâ}ÖËrdâ pÖmX~âyâZ{â¶[ ~âZdâsÉâÏê©dêª{â° A{ê©úÉâÈÖÐ{ê. E¶[ E}â°Q Àâ°°ª{ê dâªvâ° ±pâ°Àâ I{êM©µâgâùgÖÐ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°. C & B (South) .N. Material Management & Purchases.Member (7) Sri K. KPTCL (5) Controller. services & works and suggest suitable action on each issue as to enable the Government for implementation of the Action Plan as per Country Procurement Assessment Report (CPAR). PWD 122 SO/FC 2003. Venkataraman.Member (4) Chief Engineer. BWSSB (Material Procurement) . .Member (6) Chief Engineer.Member Convenor. Consultant-1 (Procurement).Member . (vi) Works Documents Hence this Order. (i) Measurement Book (ii) Registration of Contractors (iii) Price adjustment (iv) Procedure for submission of Tender Documents (v) Introduce Lumpsum. KSRTC . World Bank (8) Joint Secretary. and discuss all the above 5 issues relating to Procurement of goods. PWD Chairman of the Sub-Committee (2) Chief Engineer.83 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Procurement Reforms – Constitution of Sub-Committee Read: Standing Committee/Working Group Meetings Preamble : In pursuance of the Standing Committee/Working Group meetings. (1) Secretary. PWD . Design and Build and Management contract. it was decided to constitute a Sub-Committee to look into the following issues of the Procurement Reforms Action Plan on the recommendations of the Country Procurement Assessment Report (CPAR). Karnataka. GOVERNMENT ORDER NO. Stores & Purchases. Karnataka. The Committee shall meet regularly and informally.Member (3) Chief Engineer Irrigation (South) Mysore . DATED: 8TH MAY 2003 In the circumstances Government is pleased to constitute a Sub-Committee of the following Officers to examine and recommend on the issues mentioned in the preamble. BANGALORE. V. . PWD (Finance Cell). By Order and in the name of the Governor of Karnataka B.84 The Sub-committee shall start the work immediately and submit its recommendations to the Standing Committee. Shrikant Special Officer & Ex-officio Deputy Secretary to Government. a provision was made to remove difficulties arising in giving effect to the provisions of the act. The act has been invoked for more than two years now and it is desirable to review the act and rules so as to remove any difficulties. PSU's and other organizations have expressed difficulties in implementation. (ii) Difficulties if any in implementing the act and suggestions to over come them. Government have enacted the KTPP Act to ensure transparency in Public Procurement of Goods and services by streamlining the procedure in inviting. and related KTPP Rules have been also issued thereafter.03 Sub: Review of KTPP Act 1999 and Rules 2000 regarding.05. Your Sincerely (B. In the Act. (iii) Any amendments considered necessary with detailed justification and draft proposals. DAS) .K. processing and acceptance of tenders by Procurement Entitles. Finance Department has issued necessary clarifications and opinions on the KTPP Act as and when the departments. The KTPP Act came into force from 4th October 2000. Finance Department has also considered exemptions whenever it was found necessary and amendments were made keeping in view of the necessity of the departments so as to ease to practical difficulties faced by the departments/PSU's etc. The above details may be furnished to Finance Department within fortnight so that we could examine all the proposals/suggestions/amendments/ any changes to be effected on a comprehensive basis consistent the basic principles of Transparency. and matters related to it. I shall be grateful for an early reply With regards. (iv) Suggestions if any to strengthen the Transparency Act and any other related matter. I therefore request you to provide feed back to Finance Department on (i) Effectiveness of transparency act.85 NO: PWD/409/FC-III/03 DATED: 19. This initiative would introduce best practices in procurements across Government Departments.do – X.do - v. Director. This would be possible through the creation of an e-Procurement platform that would enable procurement of goods and services as well as works contracts.do - vi.do - vii. Finance Department '' . The process would create end to a procurement management linking the suppliers with the departments and other end users. the much required transparency in the procurement process and the cost saving due to increased competition through reverse auction. Secretary (Expenditure). The adoption of e-Procurement processes would help in demand aggregation.do – XII. GOVERNMENT ORDER NO. Government is pleased to constitute a Steering Committee with the following members: I. Finance Department '' . Banagalore '' . Principal Secretary.do - IX. reduced inventory costs.do - iv. it is decided to constitute a Steering Committee. Water Resources Department '' . Secretary (e-Governance) Convenor and Member '' . Principal Secretary. IIIT. Deputy Secretary (PWD cell). Public Works Department '' Chairman '' '' Member III. Secretary.do – The Steering Committee would be responsible for . DATED 3RD JUNE 2003 In the circumstance explained in the preamble. In order to finalise the details of e-Procurement platform and then to coordinate and implement the project. DPAR 26 EGV 2003 BANGALORE. Principal Secretary. Bangalore.do - viii.do – XI. Representative of CII. Public Works Department '' . DPAR (Administrative Reforms) '' . Secretary. Hence the following order. consistent procurement procedures across the departments. '' . (Budget). (Commerce & Industries Department . Finance Department '' . it has been decided to explore the possibility of using the e-Procurement platform for enabling departments to procure their requirements. Preamble: As part of its e-Governance initiative.86 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Core initiative in e-Governance-e-Procurement. Water Resources Department '' . reduction in cost of procurement.Constitution of a Steering Committee – reg. Secretary. II. Additional Chief Secretary & Principal Secretary. 87 • To finalise detailed requirements of the State Government for the e-tendering process finally culminating into a request for proposal (RFP) • Evaluation of various service providers available in the market • Evaluation of offers from bidders and entrusting of work to successful bidder • Co-ordinating amongst respective Departments and participating agency • Handling issues. The Committee may co-opt experts as consultants or special invitees to assist the committee in its work as and when required The financial requirements of the steering committee if any shall be met out of eGovernance head of account 3451-00-090-2-04-e-Governance Project under the control of Secretary (e-Governance). DPAR (AR) By Order and in the name of the Governor of Karnataka Rajeev Chawla Secretary (e-Governance) DPAR (Administrative Reforms) . which may arise in actual implementation of e-tendering process • suggesting to Government amendment to Karnataka Transparency in Public Procurements Act required for facilitating e-tendering process • Any other issues related to successful implementation of e-tendering process • The Project implementation Committee shall meet once a month or as and when required. 88 GOVERNMENT OF KARNATAKA NO. Bangalore. CIRCULAR Subject: Two Cover Tenders System – Safeguards to be adopted. (B. (ii) The evaluation of the technical aspects contained in the first cover should be completed within a reasonable period. If it exceeds 60 days the tenders shall be reinvited]. 2000 explained the circumstances where Two-cover tenders system is to be adopted and the procedure to be followed in such cases. Rule 28 of the Karnataka Transparency in Public Procurement Rules. In order to ensure transparency in the procurement process and build public confidence in the system. The above instructions shall apply to all Procurement Entitles as defined in Section 2(d) of Chapter I of the Karnataka Transparency in Public Procurement Act. Vidhana soudha. which has failed to most the tender requirement but has offered an attractive price will be climinated. (i) At the time of opening of the First covers. This large cover containing the second covers containing the price quotations shall be opened on a predetermined time and data. Finance Department . The rationale of the two-cover tenders system is that the tender requirement will be strictly enforced and the possibility to consider a tender. dated 30th June 2003. This will instill confidence in the mind of the contracting community. whenever twocover tenders system is adopted. who are present and also get the same signed by all those tenderers or their representatives. the following safe guards shall be adopted. without any irrelevant details. PWD 1359 SO/FC 2001(P-2) Karnataka Government Secretariat. the second covers containing the price quotations shall be placed in a large cover and securely sealed in the presence of the tenderers or their representatives. (iii) The qualification criteria and the technical requirement should not be restrictive/discriminatory and the specifications particularly of equipment should be broad based and functional. Procurement Entitles shall ensure that the above Guidelines are strictly followed. in any case not more than 45 days [In exceptional cases.K. DAS) Principal Secretary to Government. and the time gap between the opening of the first and the second cover should be the minimum and. It may be noted that any violation of the Karnataka Transparency in Public Procurement Act 1999 and Rules 2000 attracts the penal provision under Section 23 of the Act. The second cover containing the price quotations of only those tenderers found qualified as per tender requirements shall be opened by the tender inviting authority. approval of the Secretary to the Government of the concerned Department /Managing Director of the Corporation shall be obtained where the period is more than 45 days but less than 60 days. 1.7. ÑîÌâ° ÉâÝÖÌâ°dâ 1 Ýâ°{êM o ~âZÉÖKÀâ}êÌâ°}â°Q dâ³·ªdâÍâÀÖÐ ~âîú©¶û{â°M o dêÔâdâªvâªyê A{ê©úÉâÈÖÐ{ê.8.2003. ÉâdÖËpâ{â %}âºdâ½yâ s~âR¹ ÉâªfêX: È곩E 1359 UÉÒa-.8. ú©hâZ¶ÄgÖpâ 1 Ýâ°{êM 3.Ä.2002. ¬}Öªdâ: 16. dâ}ÖËrdâ pÖmX~Ö·pâ A{ꩵÖ}â°ÉÖpâ Àâ°yâ°K %Àâpâ ÝêÉâî}â¶[. ÑîÌâ° ÉâÝÖÌâ°dâ 1 Ýâ°{êM %}ÖÀâµâXdâ Ýâ°{êMgâÔâ}â°Q Àâ°°ª{â°ÀâîÉâÏÖpâ{ꪱ þ}êQÈêÌâ°¶[ %¼Ëdâ EÈÖfêÌâ°¶[ ¬©hâËdÖ·¬ª{â fÖ¶ Epâ°Àâ aª{â° É⪵곩|â}ÖºdÖî Ýâ°{êMÌâ°}â°Q yâdâ_x¬ª{â uÖîgê ±pâ°Àâªyê pâ{â°Mgê³ùÉâÈÖÐ{ê. ÉâdÖËpâ{â A{ꩵâ ÉâªfêX: ûAÉâ°E 39 ÉâûÆ 2002. I~â dÖÌâ°Ë{âúË 1 Ýâ°{êM 2.2002pâ %}âºdâ½yâ s~âR¹Ìâ°¶[ %¼Ëdâ EÈÖfêÌâ° È곩d곩~âÌ곩Р%¼Ëdâ d곩µâ{â¶[ aª{â° ÉâªgâZÝâÇÖ d곩µâÀâ}â°Q o dêÔâdâªvâ û±Tª¬ Ýâ°{êMgâÔ곪¬gê Éâ½ÊÉâ°Àâªyê ~âZÉÖKÀâ}ê dâÔâ°þûpâ°yÖKpê. Ìâ°°. %¼Ëdâ EÈÖfê (Àêkâ+) EÀâpâ° dâZÀâ° ÉâªfêX (1)pâ¶[ e{âÈÖ{â ¬}Öªdâ: 17.89 dâ}ÖËrdâ ÉâdÖËpâ }âvâÀâùgâÔâ° ÆÍâÌâ° : dâ}ÖËrdâ ÉâdÖËpâ Éâ×ÀÖ·Ìâ°{â¶[}â %¼Ëdâ EÈÖfêÌâ° È곩d곩~âÌ곩Р%¼Ëdâ d곩µâ{â¶[ aª{â° ÉâªgâZÝâÇÖ d곩µâÀâ}â°Q Éâ½ÊÉâ°Àâ ±gê$. ú©hâZ¶ÄgÖpâ 1 Ýâ°{êM 3. ~âZÅâ° ÉâdÖËpâ{â %º©}â dÖÌâ°Ë{âúË. þîÌâ° ÉâÝÖÌâ°dâ:ÉâÝÖÌâ°dâ 1 Ýâ°{êM 4. ÏêªgâÔâ³pâ°. I~â dÖÌâ°Ë{âúË 1 Ýâ°{êM 2. ~âZÉÖKÀâ}ê : ÉâdÖËpâ{â dÖÌâ°Ë{âúË. 1. ÉâªgâZÝâÇÖ ~âZÑZÌê°Ìâ°¶[ Éâ°|ÖpâÇê dêôgê³Ôâ°\Àâ Éâ·°ÀÖÐ %¼Ëdâ EÈÖfêÌâ° È곩d곩~âÌ곩РA¼Ëdâ d곩µâ{â¶[ aª{â° ÉâªgâZÝâÇÖ d곩µâÀâ}â°Q o dêÔâdâªvâ û±Tª¬ Ýâ°{êMgâÔ곪¬gê yâdâ_x¬ª{â uÖîgê ±pâ°Àâªyê aª{â° ÀâÍâË{âÀâpêgê %zâÀÖ Àâ°°ª¬}â A{ꩵâ{âÀâpêgê EÀâógâÔâ¶[ ÌâÃÖÀâó{â° Àê³{âÈ곩 %¶[Ìâ°Àâpêgê Éâ½ÊÉâ·° Àâ°ªm³pÖ» ¾©vâÈÖÐ{ê. e{âÈÖÐ{ê :1.UÁÒû 200 ¬}Öªdâ: 17. ûAÉâ°E (Éê©ÀêgâÔâ°¥-2) . IT Panel. Education Department '' Member viii. Principal Secretary. CORRIGENDUM. Building. The members in para 1 of the above Order may be read as follows: I.Secretary (e-Governance) – Convenor and Member By Order and in the name of the Governor of Karnataka RAJEEV CHAWLA Secretary (e-Governance) DPAR (Administrative Reforms) . Representative of CII. Convenor. Finance Department '' Member IX. Public Works Department '' Member III. Finance Deparment '' Member XIII. M. Pawan Kumar. Additional Chief Secretary '' Chairman II. DPAR 26 EGV 2003 Karnataka Government Secretariat. Principal Secretary. In Government Order No. Director. Principal Secretary. Moksha Technologies XVI. IIIT. Secretary. Bangalore '' Member XV. Karnataka '' Special inivitee Department Department & Chairman. DPAR 26 EGV 2003 dated 3rd June 2003. Bangalore '' Member XIV. Secretary (Expenditure). DPAR (Administrative Reforms) '' Member iv. Public Works Department '' Member XI. Secretary.S. Bangalore. Water Resources Department '' Member XII. Principal Secretary. Secretary (Primary Education). V. Finance Department '' Member X.90 GOVERNMENT OF KARNATAKA NO. Principal Secretary. Water Resources Department '' Member vi. CII. Mr. a Steering Committee had been constituted to finalise details of e-Procurement Platform and then to co-ordinate and implement the project. dated 26th July 2003. Secretary (Budget). Deputy Secretary (PWD cell). Commerce and Industries '' Member vii. Health & Family Welfare '' Member v. 29 of 2000 was issued vide No. to elicit constructive comments. Dated 16th February 2001. suggestions for improvement. Vidhana soudha. Amendments to the Rules and Circulars on various aspects of Public Procurement have been issued from time to time and these have also been posted on the web site of Finance Department of Government of Karnataka. 249-C Vidhana Soudha. However before finalizing.. the comments and suggestions may please be sent on or before 15th October 2003. Standard Tender Documents have been prepared and reviewed by various Committees constituted by the Government for the purpose. it is proposed to post the draft documents in the web site of Finance Department. DAS) ACS & Principal Secretary to Government. Government of Karnataka. Works and Consultancies. or by post addresed to: Special Officer & Ex-Officio Deputy Secretary to the Government PWD (Finance Cell) Room No. Finance Department . Bangalore 560001 The comments and fincc@mail. SAMVYASHAE 29 SHASANA 1999.K. In order to ensure transparency in public procurement and bring and uniformity across all the procurement entities of the State. Suppliers and General Public. Bangalore. Bangalore. Government of Karnataka has embarked on a program of Reforms in Public Procurement. CIRCULAR Sub : Draft Documents relating to Procurement of Goods/services. dated 29th August 2003.in suggestions can also be sent by e-mail to Since the finalization.kar.91 GOVERNMENT OF KARNATAKA NO. Government of Karnataka. mandating its use by all the procurement entities of the State. These are available on the web site of Finance Department. Contractors (individual or Association). Karnataka Transparency in Public Procurement Rules 2000 was issued vide No. issuing. from various procurement entities of the State (Individual or Organization). Sd/(B. it is proposed to mandate the use of Standard Tender Documents for procurement of Goods. PWD 141 SO/FC 2003 Karnataka Government Secretariat. issuing and mandating of the Standard documents is a time bound program. The Karnataka Transparency in Public Procurement Act 1999 (Karnataka Act No.nic. point out any discrepancies etc. The Comments And Suggestions may please be sent by hand delivery. PWD/154/FC-III/2000 Dated 24th October 2000. 92 GOVERNMENT OF KARNATAKA NO. 4. Finance Department . DAS) ACS and Principal Secretary to Government. The tender documents should be made available for entire period provided for the submission of tenders as per KTPP Rule 17. 3. Vidhana Soudha Bangalore 1st September 2003. Sd/(B. 5. 1. It may be noted that any violation of the KTPP Act 1999 and KTPP Rules 2000 attracts the penal provision under Section 23 of the said Act. The proceudre in vogue is against the spirit of the Karnataka Transparency in Public Procurements (KTPP) Rules 2000 – Rule 17 and should be discontinued. The above procedure is being adopted to enable The TIAs to know the number of copies of the Tender document to be prepared and provide adequate time for the preparation of the requisite number of documents. (iii) the time and date up to which the tenders would be received as well as the time and date on which the tenders would be opened (usally 7 to 8 days after the sale of tender documents).K. Procurement Entities shall ensure that the above instructions are followed scrupulously. 2. (ii) the time and date (usually one to three days) when the tender documents would be sold to those who have submitted the applications earlier. For this purpose the TIAs shall prepare adequate number of copies of tender documents before the publication of NIT and sell the document as per instructions contained in KTPP Rule 13 from the date of publication of theNIT up to the pre-declared time on the working day previous to the day fixed for submission of tenders (either original of extended). The Above Instructions shall apply to all Procurement Entities as defined in Section 2 (d) Chapter I of the KTPP Act (1999). The Notice Inviting Tenders (NITs) issued by the Tender Inviting Authorities (TIAs) specify: (i) the time and date (period being usually two to seven days) up to which the applications for request of tender Documents will be received. CIRCULAR Sub : Procedure for sale of tender documents. PWD 140 SO/FC 2003 Karnataka Government Secretariat. as the case may be and "Parties" means both of them. preparation and implementation of projects to complement Government of Karnataka capabilities.In rule 2 of the Karnataka Transparency in Public Procurements Rules. namely:"(i) Construction. Engineering Services. 2003. Vidhanasoudha.In rule 3 of the said rules.The following methods of selection of Consultants shall be adopted as found appropriate for the assignment. (a) Quality and Cost Based Selection (QCBS). in sub-rule (1) for clause (i) and (ii). Investment and Merchant Banking Services. 2000 (hereinafter referred to as the said rules) after cluase (d). (f) "Consultants" means Individuals. (h) "Party" includes that Client or the Consultant. the Government of Karnataka hereby makes the following rules further to amend the Karnatka Transparency in Public Procurements Rules. NOTIFICATION In exercise of the powers conferred by Sub Section (1) of Section 25 of the Karnataka Transparency in Public Procurement Act. Social and Environmental Studies. Firms or Organisations engaged for providing Consultancy Services in accordance with Chapter VI A. 1999 (Karnataka Act 29 of 2000). Institutional reforms. Selection Methods :. Insertion of new chapter VIIA and rules 28B to 28K:. Financial Services. Title and commencement:. Bangalore. Amendment of rule 3 :.(1) Theses rules may be called the KArnataka Transparency in Public Procurements (Amendment) Rules.After Chapter VII of the said rules. the following chapter and rules shall be inserted. (ii) Supply of goods and services. Management. the following shall be substituted. (c) Single Source Selection (SSS). 2000. the following shall be inserted." 3. Construction Supervision. . and (iii) Consultancy Services. dated 26th September 2003. (2) They shall come into force from the date of their publication in the Official Gazette. namely:''(e)'' Consultancy Services'' includes activities such as Policy Advices. Identification. (g) "Client" means the Procurement Entity engaging the Consultants." 4. (b) Least Cost Selection (LCS). Amendment of rule 2 :. namely:"CHAPTER VIIA CONSULTANCY SERVICES 28B.93 GOVERNMENT OF KARNATAKA NO: PWD 121 SO/FC 2003 Karnataka Government Secretariat. namely:1. 2. In this method.000 for consulting firms or organisations and less than Rs. less than rupees 5. in emergency operations such as natural disasters and financial crisis. 28E. a combined evaluation of the technical and financial proposals shall be carried out by weighing and adding the quality and the cost scroes.00.(i) the assignment represents a natural or direct continuation of a previous one awarded competitively (the estimated cost of the continuation assignment is not more than 50% of the previous competitively awarded assignment).The Least Cost Selection method is more appropriate to selection of consultants for asssignments of a standard or routine nature (audits. The Consultant with the lowest evaluated price shall be selected. Quality and Cost Based Selection (QCBS) :. the Client selectes a specific consultant and requests him to prepare technical and financial proposals. The proposals shall then be evaluated. or (iv) only one Consultant has the qualifications or has experience of exceptional worth to carry out the assignment.94 28C. and the financial envelopes of the rest shall be opened in public.Under Single Source Selection.The quality and cost based selection is based both on the quality of the proposals and the cost of the services to be provided. 28D. The technical proposals shall be opened first (unopened financial proposals are kept under security) and the evaluation report of the technical proposals shall be prepared and the approval of Tender Accepting Autority shall be obtained. 28F. Under this method a minimum qualifying score for quality is established and indicated whie inviting proposals. Since there is no competition.e. which are then negotiated.000 for individual Consultants). and the Consultant obtaining the highest combined score shall be invited for negotiations. Short-listed consultants shall submit their proposals in two envelopes. The technical proposals shall be opened first and evaluated. and the performance of the incumbent consultant has been satisfactory. because. Proposals scoring less than the minimum technical qualifying score shall be rejected.. Once the financial proposals are evaluated. Since price is a factor of selection. 1. Single Source Selection (SSS) :. engineering design of non-complex works and so-forth) where well established practices and standards exist. or (ii) a quick selection of the consultant is essential e. staff rates and other unit rates shall not be negotiated.. . The financial envelopes of those consultants who submitted responsive technical proposals meeting the minimum qualifying scores shall be opened in the presence of the consultants or their representatives.00. Steps in the Selection Process :.g.Depending on the selection method adopted. Least Cost Selection(LCS) :. the technical and financial proposals shall be received in separate sealed envelope. the selection process carried out by the Client generally shall include the following steps: (i) Preparation of the Terms of Reference (TOR) for the assignment. or (iii) the contract is very small in value (i. this method is acceptable only in exceptional cases and made on the basis of strong and convincing justifications where it offers clear advantages over the competition. (v) Preparation and issuance of the Request for Proposals (REP). the nature and degree of the definition of the assignment. agreed unit rates for Consultant Staff multiplied by the actual time spent by this staff in executing the assignment and reimbursable expenses using actual experses and agreed unit prices. the distribution of risks between the Client and Consultant and the level of contract supervision the client will be able to provide. In these contracts payments are linked to clearly specified outputs. and Consultants remuneration is based on. (IV) Indefinite Delivery Contracts (Price Agreement or Standing Offers):These refer to contracts in which a Consultant is hired for a specified period to undertake tasks as and when the need arises. if any signing of contract between the Client and Consultant. Standard Requests for Proposals (RFP) and Contract Formats:Standard RFP (Requests for Proposals) and Contract Formats as may be issued by the Government of Karnataka from time to time shall be used. 28I. and (x) Negotiations.Two main considerations determine the type of contract to be used for the various consultant assignments. He shall make arrangements to monitor the progress of work. 28H. (iii) Advertising to invite the expressions of interest from Consultants (mandatory in respect of assignments estimated to cost more than rupees 20 lakhs). Contracts :. The following are the various types of contracts that can be adopted for appropriate assignments. Formats for submission of Proposlas (unless specified otherwise) as well as the General Conditions of Contract (GCC) shall not be changed.95 (ii) Preparation of the cost estimate to derermine the budget of the assignment. (ix) Final combined quality and cost evaluation to select the winning proposal (QCBS). (vii) Evaluation of the technical proposals i. qualified for the assignment. the timely completion of deliverables.. namely:(I) Lump Sum (Firm Fixed Price) contracts :.It is one where consultants are paid an agreed percentage of the actual project cost.e. (viii) Evaluation of financial proposals. 28G. However the Data Sheet and Special Conditions of Contract enable the Procurement Entities to amend or supplement Instructions to consultants (ITC) and General Conditions of Contract (GCC) to reflect local conditions and characteristics of assignment. (vi) Preparation and submission of proposals by the consultants. The Instructions to Consultants (ITC). quality evaluation. (III) Percentage Contracts :.Under this type of contract. (II) Time-Based contracts :.The Client is responsible for supervising the assignment.These are used mainly for assignments in which the content and length of services and the required output of the Consultant are clearly defined and for these reasons the Consultant can generally contorl the scope of work and duration of services. (iv) Short-listing to identify consultants. the Consultant provides services on a time basis according to quality specifications. Supervision of the Consultancy Contracts:. the staff months and money expended . if three or more individuals are needed for an assignment. University Professors or Scientists from Autonomous Research Institutes may be contracted individually.. officials of Government Undertaking.(a) the experience and qualifications of the individual must be dominant. Corporation etc. since there could be a conflict of interest. whereas individuals can be considered for advisory services assignments or technical opinions on specific matters in which specialist individual knowledge is the key issue. are employed in position of influence. and (c) team work or multidisciplinary approach is not necessary. 28k. within the contract. PWD (Finance Cell). changes in the scope of work might be appropriate. a Committee shall be constituted to review Consultant's work. Individual Consultants versus Consulting Firms :.(1) Individual Consultants may be employed to assist the Client in various areas of the project preparation and implementation. where the relatives of the Individual Consultant. For large assignments. when dealing with project preparation services of a complex nature. so that the firm will be responsible for identifying the best individuals. Government officials and officials employed in Government Undertakings or Corporations shall not be engaged under consulting services. ensuring cohesiveness and technical solvency. Individual Consultants shall not be hired by Agencies. provided they are permitted by their service conditions to undertake assignments for a specified period in a year. it is often better to hire a Consulting firm. Hiring of Government Officials. This applies regardless of their being on leave or on deputation. By Order and in the name of Governor of Karnataka ASHOK S.96 (for time-based contracts) and determine where. The TOR of the assignment provides the basis for decision. . As a practical rule. As a general rule. Individuals may be engaged on assignments for which. (b) no support from an organization is needed for the individual. it is necessary to hire a Consulting Firm. JIVARAGI Under Secretary to Government. The Client shall ensure providing comments on these reports in a timely manner. as well as backup and transparent administration. it is advisable to hire a firm. When integrated technical work and joint responsibility for the Consultants' output are important. 28J. The Contract usually requires that the Consultant shll submit regular progress reports and other periodical reporsts. DPAR 26 EGV 2003 Karnataka Government Secretariat. DPAR 26 EGV 2003 dated 26th July 2003 The following members are co-opted to the e-procurement Steering Committee constituted vide Government Order No. DPAR 26 EGV 2003 dated 3rd June 2003 and corrigendum dated 26th July with immediate effect. Ex-Secretary to Government. ADDENDUM Sub: Core initiative in e-Governance-e-Procurement-Constitution of a Steering Committee –reg. dated 27th October 2003. Ref: 1. Procurement Consultant. Tallur. Sri G. PWD 2. World Bank By Order and in the name of the Governor of Karnataka (Rajeev Chawla) Secretary (e-Governance) DPAR (Administrative Reforms) . Government Order No. Sri Venkataratnam. 1.97 GOVERNMENT OF KARNATAKA NO. M. Building.C. DPAR 26 EGV 2003 dated 3rd June 2003 2. Corrigendum No.S. Bangalore. shortlisting of agencies. Statutory Boards and Corporations are required to follow the provisions under the Act.FD 737 FC III/2003 Karnataka Government Secretariat. Bangalore. have prescribed the procedure to be followed in procurement of goods and services by the Government Departments. The Karnataka Transparency is Public Procurement Act 1999 and the rules thereunder. Vidhana soudha. Involvement of officers of Finance Department in these committees is not required since at times the finalized procurements are sent to Finance Department. (B. The services of these officials should be utilized for effective appraisal of the proposals for decision-making and inclusion of representatives of the Finance Department in different Committees of the departments relating to procurements should be avoided. In that case. pre-audit and adherence to provitions of KTPP Act.No. dated 27th November 2003. Staturoty Boards and Corporations are equipped with the necessary technical and financial personnel to aid and assist them in effective appraisal of the proposals. which is not contemplated in the Act. The departments. Finance Department . State Public Sector Undertakings. Urban Local Bodies under the government. CIRCULAR Subject: Nomination of officers of the Finance Department to committees relating to procurement of goods and services to be avoided Reg – Instructions regarding. which may go through the process of scrutiny.2003. and the Statutory Boards and Corporations constituted by the government. The Tender Scrutiny Committee and Tender Acceptance Committee.1. constituted to go into processes of procurement like prequalification of vendors scrutiny of tenders.K. are meant to ensure scrupulous adherence to the provisions of the KTPP Act and rules thereunder. DAS) ACS and Principal Secretary to Government. Tender acceptance etc. Panchayat Raj Institutions. the rules and the guidelines issued from time to time in their procurements. which is required to scrutinize and evaluate the tenders and recommend to the Tender Accepting Authority to consider the recommendation regarding acceptance of the tender.98 GOVERNMENT OF KARNATAKA NO. Principal Secretaries and Secretaries to Government have been empowered to accept the tender presuming the concurrence of the Finance Department vide GO. Statutory Boards and Corporations are including the representative of the Finance Department as a member of the Tender Scrutiny Committee. the representative of Finance Department who has participated in scrutiny/Evaluation/acceptance of tenders as the case may be. FD1 TFP 2002 Dated: 20. It is observed that departments.. Accordingly the tenders have to be accepted by the authorities/officers by duly following the procedures prescribed in the KTPP Act. The Departments. will be reviewing the earlier decisions. R.O.99 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Subject: Procurement Reforms – Constitution of Standing Committee for implementation – issue of further instructions. Sri Rajeev Chawla. Secretary to Government. . for implementation of the Procurement Reforms Action Plan on the recommendations of Country Procurement Assessment Review Report given by the World Bank Team (CPAR. PWD (Finance Cell). IAS. the Government is pleased to co-opt the following officer as member of the Standing Committee on implementation of the Procurement Reforms Action Plan on the recommendations of CPAR. In the D.R). GOVERNMENT ORDER NO:PWD 145 SO/FC 2003. addressed to the ACS & Principal Secretary to Govt.. the Government has constituted a Standing Committee under the Chairmanship of the Secretary to Government (Expenditure). SHRIKANT Special Officer & Ex-officio Deputy Secretary to Government. & A.R) has stated that a steering committee has been constituted by Government under the chairmanship of Additional Chief Secretary & Principal Secretary to Government.. he has requested that Secretary..O letter dt: 30-10-2003 read at (ii) above. Letter No. Secretary to Government.V. This request has been considered.No. DPAR 26 EGV 2003.O. e-Governance. DP & AR (A. Preamble: In Government Order read at (i) above. Commerce & Industries Department to bring in an e-procurement platform and that Secretary (e-governance) is the Member Secretary of this committee.P. By Order and in the name of the Governor of Karnataka B. Karnataka:1. by the Secretary to Govt. dated: 5th August 2002 (ii) D. Read: (i) G.. D. (Administrative Reforms). In this context.e-Governance. Karnataka). DPAR (A. PWD 1359 SO/FC 2001. e-Governance. Finance Department. BANGALORE DATED:22ND DECEMBER 2003 In the circumstances explained in the Preamble. eGovernance. dated: 30-10-2003. This order shall come into force with immediate effect. Finance Dept. may also be co-opted as member of Standing Committee on Procurement Reforms. o ÉâÆ°»Î°ª{â ÂêªvâpÒ ~âîú©·}êÌâ° }âªyâpâ %{âpâ úÁÖpâûb}곪¬gê %ÀâµâXdâyê dâªvâ°±ª{â¶[ ~âòÀâË Èêdâ" ~âîµê³©|â}êgÖÐ ~âZÉÖKÀâ}êÌâ°}â°Q A¼Ëdâ EÈÖfêgê dâÔâ°þÉâ°Àâó{â°.100 dâ}ÖËrdâ ÉâdÖËpâ ÉâªfêX:È곩E:621:Ad곩¥3/2003 Éâ°yê³K©Èê dâ}ÖËrdâ ÉâdÖËpâ Éâ×ÀÖ·Ìâ°. ¬}Öªdâ: 27. ¾©pÖÀâî Àâ°yâ°K ÉâxJ ¾©pÖÀâî EÈÖfêgê É⪱ªºû{âªyê pâ³. A{âpê EÈÖfÖ Àâ°°ÙXÉâLpâ° Àâ°yâ°K EÈÖfÖ dÖÌâ°Ë{âúËgâÔâ° ~âòÀâËÈêdâ" ~âîµê³©|â}ê %gâyâXÀêª{â° »ùûpâ°Àâ ~âZÌâ°°dâK IÈê[©Øyâ ~âyâZ{â¶[ »ùûpâ°Àâ ÆÍâÌâ°Àâ}â°Q gâÀâ°}â{â¶[îûd곪vâ° ~âòÀâËÈêdâ" ~âîµê³©|â}ê (pre-audit) ±gê$ o dêÔâdâªvâªyê dâZÀâ° dêôgê³Ôâ\·° Éâ³kâ}êgâÔâ}â°Q ¾©vâÈÖÐ{ê. yâyâbª±ª|âÀÖ{â ÂêªvâpÒ ~âZÑZÌê°Ìâ°¶[ ÂêªvâpÒ ¾Ìâ°Àâ°gâÔâ}â°Q dâr°D¾ÂÖDÐ ~Ö¶û{êÌê°©? ÂêªvâpÒ ²vâ°GgâÔâ}â°Q ÉâîÌâÃÖÐ aÄRdê³Ôâ\ÈÖÐ{êÌê°© %zâÀÖ »pâÉâ"îÉâÈÖÐ{êÌê°©. ÝÖgâ³ Ù ¾Ìâ°Àâ°gâÔâ¶[ È곩~â{곩Íâ IªÂÖgâ{âªyê. o ÆÍâÌâ°Àâ}â°Q Àâ°yê³KÀê°W ~âîú©¶ÉâÈÖÐ{ê. Àê°©·"ªvâ ÆÍâÌâ° Àâ°yâ°K IÈê[©Ùdê" É⪱ªºû{âªyê UÈÖ[ EÈÖfêgâÔâ¶[ ~âZ» ÀâÍâË dâlê©î ÉÖ|â}â ÉÖÀâ°ÐZgâÔâ°.00 d곩sgâùЪyâ Æ°©î{âM¶[ dâ.dê {ÖÉÒ %~âpâ Àâ°°ÙX dÖÌâ°Ë{âúË ÝÖgâ³ ÉâdÖËpâ{â ~âZ|Ö}â dÖÌâ°Ë{âúË A¼Ëdâ EÈÖfê. Æ|Ö}âÉñ|â ÏêªgâÔâ³pâ°. Ìâ°ªyê³Z©~âdâpâxgâÔâ°. ². ~âòÀâËÈêdâ" ~âîµê³©|â}ê (pre-audit) dÖÌâ°ËÀâ}â°Q UÈÖ[ EÈÖfêgâÔâ¶[ dêôgê³Ôâ\·° ÉÖ|âXÆ·[Àêª{â° A¼Ëdâ EÈÖfê Àâ°}âgâªÚ{ê.2003.Éâª.¾Ìâ°Àâ°{â ¾Ìâ°Àâ° ÉâªfêX 20pâ}â]Ìâ° ÂêªvâpÒ ~âîú©·}Ö ÉâÆ°»Ìâ°}â°Q pâ×Éâyâdâ"{êª{â° Éâ³×ÉâÈÖÐ{ê.Éâª.~Ö. IÈê[©Ù: A¼Ëdâ EÈÖfêÌâ° ~âyâZ ÉâªfêX: AE.11. ·ÅâX û©Æ°yâ û±Tª¬Î°pâ°Àâ dÖpâx.²ÄU. o ±gê$ A¼Ëdâ EÈÖfêΰª{â Éâ³dâK A{ꩵ⠾©vâÈÖgâ°Àâó{â° Uª{â° »ùÉâÈÖÐ{ê.ÉÖ.ÉÖ.12.5. . EyÖX¬ %ªµâgâÔâ ±gê$ dâ³·ªdâ°ÍâÀÖÐ ~âîú©¶Éâ·°. ¾Ìâ°Àâ°gâÔâ° 2000 î©yâX Ù ~âZÑZÌâÃÖ dêôgê³Ôâ\Ïê©Ñ{â°M.2002 ¬}Öªdâ 27. ¾©pÖÀâî Àâ°yâ°K ÉâxJ ¾©pÖÀâî EÈÖfê Ýê³pâyâ°~âÚû) ÌâÃÖÀâó{ê© Éâpâdâ° ÉâªgâZÝâ}êÌâ° dÖÀâ°gÖîÌâ° ÀâÃñ·XÀâó pâ³. ~âZÉÖKÀâ}êÌâ° ~âîú©·}êÌâ° }âªyâpâ ~âòÀâËÈêdâ" ~âîµê³©|â}ê (pre-audit) %ÀâµâXdâyê Uª<{â° dâªvâ°±ª{â¶[. Èêdâ"~âyâZ EÈÖfêÌâ° Àâ°°fÖªyâpâ ~âòÀâËÈêdâ" ~âîµê³©|â}ê (preaudit) ÀâXÀâÉêL uÖîgê³ùÉâ°Àâªyê UÈÖ[ EÈÖfêgâùgê »ùÉâÈÖÐyâ°K. iÍâºgâÔâ° EyÖX¬gâÔâ}â°Q ÙÉâ°ÀÖgâ dâ.00 d곩sЪyâ Æ°©î{âM¶[ ÝÖgâ³ È곩d곩~âÌ곩Ð.2002.~Ö.%º¾Ìâ°Àâ° 1999 ÝÖgâ³. o É⪱ª|â pÖmX Èêdâ"~âyâZ EÈÖfêÌâ°°. ÆÍâÌâ° : ÉâdÖËpâ{â UÈÖ[ EÈÖfêgâÔâ¶[ ~âòÀâËÈêdâ" ~âîµê³©|â}ê (Preaudit) ÀâXÀâÉêL ÀâÃÖvâ°Àâ ±gê$.1. EÈÖfêgâÔâ¶[ (È곩d곩~âÌ곩Ð. o Éâ³kâ}êgâÔâ}â°Q yâÀâ°W %º©}â{â¶[ UÈÖ[ EÈÖfêgâùgê ¾©vâÏê©dêª{â° ÉâÝâ d곩pâÈÖÐ{ê.19. dated: 29-08-2003. a copy of which is herewith enclosed. suppliers and general public in Circular letter issued in No. . it is once again requested to expedite the comments and communicate the same by hand or by e-mail as stated in the aforesaid Circular. The standard documents are required to be finalized soon. (D. CIRCULAR Subject : Procurement Reforms – Standard Tender and Contract Documents – Preparation & Publication ofRef : Govt. pointing out of deficiencies have been invited from various procurement entities of the State (Individual or Organisation).Cell/2004 Karnataka Government Secretariat. Comments/suggestions for improvement. Circular No. In accordance with this.FD 9/Proc. before the 15th March 2004 for enabling this Department to take further action in the matter . Hence. dated 25th February 2004.nic. PWD 141 SO/FC 2003 dated: 29-8-2003. it has been proposed to develop standard tender and contract documents for procurement of goods. so far comments from the concerned have not yet been received. (Individual or association). Secretary to Government. In order to ensure transparency in public procurement of goods.N. Vidhana soudha.in/linance/ transparency". the draft standard documents have been prepared and put on the website of the Finance Department at ''kar. NARASIMHARAJU). As per the Circular. comments and suggestions were requested to be sent by 15th October 2003. PWD 141 SO/FC 2003. services and consultancy services and to bring in uniformity in the procedures followed by procurement entities in the State. contractors. services and consultancy services and to mandate their usage.101 GOVERNMENT OF KARNATAKA NO. Bangalore. Finance Department (Expenditure). However. dâpâvâ° ÉÖDªvâvÒË {âÉÖKÀê©m°gâÔâ}â°Q yâÌâÃÖîÉâÈÖÐ{ê Àâ°yâ°K A¼Ëdâ EÈÖfêÌâ° ÀêÏÒÉêôÂÒ ''Kar.8. Àê°©·"ªvâ Éâ°yê³K©ÈêÌâ°¶[ »ùû{âªyê ~âZ»ÑZÌê°gâÔâ}â°Q yâ]îyâgê³ùû %ÀâógâÔâ}â°Q ÝÖXªvÒ vê¶Àâî %zâÀÖ E¥Àê°©ÈÒ Àâ°³·dâ o EÈÖfêgê o ÆÍâÌâ°{â¶[ Àâ°°ª¬}â dâZÀâ° yêgê{â°dê³Ôâ°\Àâ Éâ·°ÀÖÐ ÀâÃÖkÒË.ÉÖD<ªvâvÒË ÂêªvâpÒ ÝÖgâ³ dÖªÂÖZdÒD {âÉÖKÀê©m°gâÔâ° . ¬}Öªdâ: 29-. %{âpâ ~âZ»Ìâ°}â°Q E{âp곪¬gê ·gâ»Kû{ê.nic.U}Ò. Éâ°yê³K©Èê ÆÍâÌâ° : ÉâªgâZÝâx ÆÍâÌâ°{â dâ°îyâ° Éâ°|ÖpâÇêgâÔâ° . }âpâû<ªÝâpÖm° ÉâdÖËpâ{â dÖÌâ°Ë{âúË. IÈê[©Ù: ÉâdÖËpâ{â Éâ°yê³K©Èê Éâª:Ävâ±³XÚ 141 UÉÒa/UÁÒû 2003.8. Ú.2003 pâ¶[ Ýê³pâÚÉâÈÖÐ{âM Éâ°yê³K©Èê ~âyâZ{â¶[ pÖmX{â Ýâ·ÀÖpâ° ÉâªgâZÝâÇÖ ÉâªÉêLgâÔâ° (ÀêôÌâ°ÑKdâ %zâÀÖ ÉâªÉêL). gâ°»Kgê{Öpâpâ° (ÀêôÌâ°ÑKdâ %zâÀÖ Éâªhâ). Éâ°|ÖpâÇê Éâ·ÝêgâÔâ°. o Éâ°yê³K©ÈêÌâ° ~âZdÖpâ ~âZ»ÑZÌê°gâÔâ° Àâ°yâ°K Éâ·ÝêgâÔâ° ¬}Öªdâ: 15}ê© %dê³D©±pÒ 2003pâ aÔâgÖÐ dâÔâ°þÉâ·° d곩pâÈÖÐyâ°K. ÆyâpâÇê{Öpâpâ° Àâ°yâ°K m}âÉÖÀâÃÖ}âXpâ° EÀâpâ°gâùª{â pâkâ}ÖyâWdâ ~âZ»ÑZÌê°gâÔâ°. A{â°{âîª{â. Éâ{âî ÉÖDªvâvÒË {âÉÖKÀê©m°gâÔâ}â°Q Ïê©gâ}ê %ª»Àâ°gê³ùÉâÏê©dÖÐ{ê.2003. ¬: 29-. ¬}Öªdâ: 25}ê© Áê±ZÀâî 2004. pÖmX{â ÉâªgâZÝâx ÉâªÉêLgâÔâ°. }â³X}âyêgâÔâ° y곩îÉâ°Àâ ±gê$ »ùÉâ·° AÝÖ]¾ÉâÈÖÐ{ê. Æ|Ö}âÉñ|â ÏêªgâÔâ³pâ°. E{âpâªyê. Éê©ÀêgâÔâ° Àâ°yâ°K dâ}âbÈêD¾b Éê©ÀêgâÔâ° ÉâªgâZÝâÇêgÖÐ ÉÖDªvâvÒË ÂêªvâpÒ Àâ°yâ°K dÖªÂÖZdÒD {âÉÖKÀê©m°gâÔâ}â°Q yâÌâÃÖîÉâ°Àâó{â° Àâ°yâ°K %ÀâógâÔâ dâvÖGÌâ° I~âÌ곩gâÀâ}â°Q ÀâÃÖvâ°Àâó{â}â°Q ~âZÉÖKÄÉâÈÖÐ{ê.in/finance/transparency" }â¶[ ·ÅâX ÀâÃÖvâÈÖÐ{ê Àâ°yâ°K ÉâªfêX:Ävâ±³[ XÚ 141 UÉÒa/UÁÒû 2003. Éê©ÀêgâÔâ° Àâ°yâ°K dâ}âbÈêD¾b Éê©ÀêgâÔâ° EÀâógâÔâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇê ÀâÃÖvâ°Àâ¶[ ~Öpâ{âµâËdâyê yâpâ°Àâ {⽸Dΰª{â Àâ°yâ°K I~âÌ곩ÐÉâ°»Kpâ°Àâ Æ|Ö}âgâÔâ¶[ Odâpâ³~âyê yâpâ°Àâ Éâ·°ÀÖÐ Éâpâdâ°gâÔâ°. 2004pâ aÔâgÖÐ dâÔâ°þÉâÏê©dÖÐ Àâ°yê³KÀê°W Æ}⪻ÉâÈÖÐ{ê. 15.102 dâ}ÖËrdâ ÉâdÖËpâ ÉâªfêX:UÁÒÚ 9 Éâªd곩 2004 dâ}ÖËrdâ ÉâdÖËpâ Éâ×ÀÖ·Ìâ°. A¼Ëdâ EÈÖfê (Àêkâ+) .yâÌâÃÖîdê Àâ°yâ°K ~âZdârÇê ±gê$. A{âpâ³ E{â°Àâpêgê É⪱ª|â~ârDÀâîª{â ~âZ»ÑZÌê°gâÔâ° ±ª¬pâ°Àâó¬·[. Éâpâdâ°gâÔâ°. Raita Mitra And Krishi Marata Vahini. Rural Digital Service is a counterpart of Bangalore One under which citizens in rural areas would be able to get all their taluk and district based services like issue of caste certificate. Some of the examples are computerization of Department of Treasury and Computerisation of Commercial Taxes Department etc. Realising the importance of setting up of e-procurement platform. . The objective of this initiative is to introduce best practives in procurement across Government departments and PSUs. Read: Government Order No. Karnataka is the only State to have introduced a comprehensive Act on the issues related to procurement. Human Resource Management System is another major e-Governance initiatives under which the details of all 8 lakh State Government employees would be computerized and made available.103 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Setting up of e-Procurement platform – reg. It is also working with World Bank for further reforms in the area of procurement. State Government has also undertaken some major initiatives to computerize its back offices. The examples include Bhoomi. Cauvery. DPAR 26 EGV 2003 dt. The results are encouraging although not optimized because of uncoordinated approach and because of non optimal solutions. 3-6-2003. Processes like reverse auction may even leas to major savings to Government because of competition. This initiative is in line with the major reforms undertaken by State Government in the areas of procurements. BMTC etc. The Government has also embarked on some other core areas of eGovernnce. WRDO. They include Bangalore One under which citizens is Bangalore would be able to get their utilities based service from citizen integrated centres. the State Government has constituted a steering committee under the chairmanship of Additional Chief Secretary. Similar initiatives on smaller scale have been tried in various PSUs like KPTCL. They include setting up of Wide Area Network. Another major e-Governance initiative which is programmed is 'eprocurement'. reduced inventory cost. Preamble : The State Government has taken up various major e-Governance initiatives for comuputerizing citizen centric services for delivering hassle free service to citizens in the most efficient manner. Sarige. income certificate from the village level telecentres itself. There is a need to now expedite the setting up of a unified e-Procurement platform to be used by all the departments and the public sector undertaking. KSRTC. consistent procurement procedures across the department and of course the transparency in the end to end process of procurement. the following order. The benefits of e-procurement help in demand aggregation. a State Data Centre for ensuring disaster recovery of various e-Governance projects and for making data centrally available to departments and citizens. Some new citizen centric services have also been planned. Hence. 4. By Order and in the name of the Governor of Karnataka (Rajeev Chawla) Secretary (e-Governance) DPAR (Administrative Reforms) . approve a setting up of a single unified platform to be used by all the Government departments and public sector undertakings. modify KTPP Act to bring in the concept of e-procurement. 3. DPAR 26 EGV 2003 BANGALORE. appoint a Consultancy agency through competitive process which would help in advising the Government on selection of vendors and setting up of the platform. authorise the Steering Committee on e-procurement chaired by the Additional Chief Secretary to introduce the e-Governance paltform immediately in various departments in phased manner. 5. 2. stop all manual tendering processes in such department as and when eprocurement platform is introduced. DATED 15th MAY 2004 The Government are pleased to: 1.104 GOVERNMENT ORDER NO. ~Öªvê ÉâdÖËpâ{â %~âpâ Àâ°°ÙX dÖÌâ°Ë{âúËgâÔâ° ÝÖgâ³ ~âZ|Ö}â dÖÌâ°Ë{âúËgâÔâ°. A¼Ëdâ EÈÖfê. dê. Éâ°yê³K©Èê ÆÍâÌâ° : dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ° 1999-¥ dâ·ª 4(Ê) pâÚ Æ}ÖΰK ±gê$ ¥ Æ}ÖΰK ¾©vâ°Àâ¶[ yâvêþÚÌâ°·° dâZÀâ°. %º¾Ìâ°Àâ°{â 4}êÌâ° dâ·Æ°}âÚ ÆúÍâD Éâª{âÅâËgâÔâ¶[ %º¾Ìâ°Àâ°{â I~â ±ª|âgâÔâ}â°Q %}â]ΰÉâ°Àâó{âdê" Æ}ÖΰK ¾©vâÈÖÐ{ê. .105 dâ}ÖËrdâ ÉâdÖËpâ ÉâªfêX:AE 50 Éâªd곩µâ 2004 dâ}ÖËrdâ ÉâdÖËpâ Éâ×ÀÖ·Ìâ°. o þ}êQÈêÌâ°¶[ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°¬ª{â Æ}Öΰ» d곩î ÌâÃÖÀâó{ê© ~âZÉÖKÀâ}êÌâ°}â°Q dâÔâ°þÉâÏÖpâ{êª{â° %·[{ê yâÀâ°W %º©}â{â¶[Ìâ° EÈÖfêgâÔâ°/ÉâdÖËî ÉÖ]Àâ°X{â ÉâªÉêLgâÔâ° U·[ ÉâªgâZÝâÇêgâÔâ¶[ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°{â I~â ±ª|âgâÔâ}â°Q ~Ö¶Éâ°Àâªyê Ù×yâ~âÚÉâ°ÀâªyêÌâ°³ d곩pâÈÖÐ{ê. Éê©ÀêgâÔâ}â°Q ~âvêÌâ°yâdâ"{âM·[. ÉâªgâZÝâÇêÌâ°¶[ ~ÖZµâÉ⦠ÝÖgâ³ Æ}Öΰ»gâÔâ° dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyêÌâ° %º¾Ìâ°Àâ°{â I{êM©µâÀâ}â°Q ÆÁâ·gê³ùÉâ°yâKÀê Uª±°{â}â°Q ~âó}âpâ°kâ+îÉâ°Àâ %gâyâXÆpâ°Àâó¬·[. dÖÀâ°gÖî.Ä. Ƶâ]ÏÖXªdÒ ÉâÝÖ ÉÖÀâËm¾dâ ÉâªgâZÝâÇê ~âZÑZÌê°Ìâ°¶[Ìâ° Éâ°|ÖpâÇêgâÔâ}â°Q gâÀâ°¾Éâ°»K{ê. ÉâdÖËî ÉÖ]Àâ°X{â ÉâªÉêLgâÔâ° ÝÖgâ³ ÉâLù©Ìâ° ÉâªÉêLgâÔâ ÉâªgâZÝâÇê ~ÖZºdÖpâgâÔâ¶[ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêÌâ°¶[ ~Öpâ{âµâËdâyêÌâ°}â°Q Ù×yâ~âÚûdê³Ôâ°\Àâ I{êM©µâ¬ª{â dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ° 1999 }â°Q ÉâdÖËpâÀâó uÖîÌâ°¶[ y⪬pâ°yâK{ê. dÖpâx. o î©» Æ}Öΰ»gâÔâ}â°Q Àâ°°ª{â°ÀâpêÉâ·° ÉÖ|âXÀÖgâ°Àâó¬·[Àâ·[{ê© %ÀâógâÔâ}â°Q Ýâªyâ ÝâªyâÀÖÐ Àâ°°dÖKÌâ°gê³ùÉâ°Àâ %ÀâµâXdâyê E{ê. dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°{â 4(Ê) dâ·Æ°}â}â]Ìâ° Æ}Öΰ» ¾©vâ·° EÈÖfêgâÔâ° A¼Ëdâ EÈÖfêgê ~âZÉÖKÀâ}êgâÔâ}â°Q ÉâÝâmÀÖÐ dâÔâ°þÉâ°»Kpâ°Àâó{â}â°Q gâÀâ°¾ûÈÖÐ{ê. ¬}Öªdâ: 30}ê© m³}Ò 2004. ÉâdÖËpâ{â EÈÖfêgâÔâ°. Æ|Ö}âÉñ|â ÏêªgâÔâ³pâ°. dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ°¬ª{â Æ}Öΰ» d곩pâ°Àâ ÌâÃÖÀâó{ê© ~âZÉÖKÀâ}êÌâ°}â°Q ~âîgâ¹Éâdâ³vâ{êª{â° ¾|âËîÉâÈÖÐ{ê. o %º¾Ìâ°Àâ°{â}â]Ìâ° ÌâÃÖÀâó{ê© ÉâªgâZÝâÇÖ ÉâªÉêLÌâ°° Âêªvâpâ° ~âZÑZÌê°Î°·[{ê ÉÖÀâ°ÐZ. ÉÖÀâ°ÐZ ÝÖgâ³ Éê©ÀêgâÔâ ÉâªgâZÝâÇêÌâ°¶[ ÉâªgâZÝâÇÖ ÉâªÉêLgâÔâ° dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ° 1999 ÝÖgâ³ dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâÇêgâÔâ¶[ ~Öpâ{âµâËdâyê ¾Ìâ°Àâ°gâÔâ° 2000 pâ¶[ ¾gâ¬~âÚÉâÈÖ{â Æ|Ö}âÀâ}â°Q ~Ö¶ÉâÏê©dÖÐ{ê. with the specific approval of the concerned Head of the Department of Managing Director of the Public Undertaking/Board. The above instructions shall apply to all Procurement Entities as defined in Section 2(d) Chapter I of the Karnataka Transparency in Public Procurements Act. in respect of Price Adjustment clause in tender documents. the World Bank has made a set of recommendations for Procurement Reforms.20 lakhs and a completion period of more than 18 months and it should be made applicable from the date of opening tenders. (a) A Price Adjustment clause shall be included in all Works contracts whose estimated cost put to tender is Rs. 3. (b) In works contracts where. the following instructions are issued for compliance. motors.100 lakhs or more and the period of completion is 12 months or more. After considering all aspects in the matter. . CELL 2004. The Price Adjustment clause and the formulae for adjustment shall be as per Annexure-I. that have raw material component subject to price fluctuations.106 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Subject: Procurement Reforms – Provision of Price Adjustment clause in the tender documents. Price Adjustment Cluase is provided. One such recommendation is that Price Adjustment should be mandated in respect of all contracts of value more than Rs. the Government issues following orders. FD 59 PRO. appropriate Price Adjustment clauses may be incorporated by the Tender Inviting Authority in the tender documents. (c)Price Adjustment Clause shall not be included in Goods and Equipment tender documents. ORDER NO. the Price Adjustment shall be admissible from the date of opening of tenders (Original or extended). generators. Preamble : In the Country Procurement Assessment Report prepared for the State of Karnataka. BANGALORE DATED 26TH NOVEMBER 2004 1. Transformers. The State Government has examined the Recommendation. The above instructions will only be applicable prospectively and shall not be applicable for contracts concluded in the past or being concluded presently or for tenders already invited. In super-session of all Standing Rules and Instructions. 1999. 2. However in respect of tender documents for procurement of Electric cables. Finance Department.107 4. The above instructions should be appropriately incorporated in the Standard Tender Documents under Preparation. Pandey) Additional Chief Secretary and Principal Secretary to Government.P. . By Order and in the name of Governor of Karnataka (K. . less the amount of the secured advance recovered during the quarter. Government of India..nic. It should be changed if need to be suit the nature of the work. 2 The Index numbers are available in the web site http:/labourbureau. . It will exclude value for works executed under variations for which price adjustment (if any) will be worked out separately based on the terms mutually agreed..108 Annexure I PRICE ADJUSTMENT CLAUSE FOR WORKS CONTRACTS Price Adjustment: Contract price shall be adjusted for increase or decrease in rates and prices of labour materials. The centers for which the indices presently available for Karnataka State are Bangalore.85 x PL/100 xRx(Li-Lo) /Lo Where..in/indtab... Mercara. Hubli/Dharwad. Ministry of Labour. PL = Percentage of labour component of the work Adjustment for Cement Component : 1 The Formula has some normal components. (d) To the extent that full compensation for any rise or fall in costs to the contractor is not covered by the provisions of this or other Cluases in the Contract... up to the end of original period of completion or extensions granted by the Employer and shall not apply to work carried out beyond the stipulated period of completion for reasons attributable to the Contractor. fuels and lubricants in accordance with the following principles and procedures and as per formula given hereunder. Choose the centre nearest to the work for which tenders are invited.. It would include the amount of Secured advance for materials paid for (if any) during the quarter. Belgaum.3 Centre for the quarter preceding the date of opening of tenders as published by the Labour Bureau. (a) The price Adjustment shall apply for the work done from the date of commencement.. (b) The price adjustment shall be determined during each quarter from the formula given hereunder (c) Following expressions and meanings are assigned to the work done during the quarter.. VL = Increase or decrease in the cost of work during the quarter under consideration due to changes in rates for local labour. VL = 0. LO = The average consumer price index2 for industrial workers for ..him/ 3 Insert the name of center. Li = The average consumer price index for industrial workers for . Centre for the quarter under consideration as published by Labour Bureau... Ministry of Labour... Government of India. R = Total Value of work done during the quarter. the unit rates included in the contract shall be deemed to include amounts to cover the contingency of such other rise or fall in costs.. Price Adjustment Formula1 : Adjustment for labour component: (i) Price adjustment for increase or decrease in the cost due to labour shall be paid in accordance with the following formula.. Vs = Increase or decrease in the cost of work during the quarter under consideration due to changes in the rates for steel. Vc = 0. New Delhi Ps = Percentage of steel component of the work Note : For the application of this clause. Bars and Rods6 has been chosen to represent steel group. Ministry of Commerce and Industry. Vc = Increase or decrease in the cost of the work during the quarter under consideration due to changes in the rates for cement. Government of India. Ci = The all India average whole sale price index for cement (Ordinary Portland Cement) for the quarter under consideration as published by the Office of Economic Advisor. Vs = 0. Government of India.S.109 (ii) Price adjustment for increase or decrease in the cost of cement component procured by the contractor shall be paid in accordance with the following formula. New Delhi. Bars and Rods) for the quarter under consideration as published by the Office of Economic Advisor. Ministry of Commerce and Industry.85 XPB/100XRX (Bi-Bo)/Bo. index of Ordinary Portland Cement5 has been chosen to represent Cement group.85 X PC/100XRX (Ci – Co)/Co. Ministry of Commerce and Industry. So = The all India average wholesale price index for steel (M. (iv) Price adjustment for increase or decrease in the cost of bitumen shall be paid in accordance with the following formula: VB = 0.in 5 This may be changed depending on the major type of Cement used depending on the nature of work 6 This may be changed depending on the major material used depending on the nature of work . index of M. Where. New Delhi Pc = Percentage of cement component of the work Note: For the application of this clause.nic.S. Government of India. Co = The all India average wholesale price index 4for cement (Ordinay Portland cement) for the quarter preceding the date of opening of the tenders as published by the Office of Economic Advisor.S. Ministry of Commerce and Industry. Adjustment for steel component: (iii) Price adjustment for increase or decrease in the cost of steel procured by the contractor shall be paid in accordance with the following formula.85 X PS/100 XRX (Si-So)/So where. Bars and rods) for the quarter preceding the date of opening of Bids as published by the Office of Economic Advisor. New Delhi Si = The all India average wholesale price index for steel (M. Where 4 The index number are available in the web site http://eaindustry. ....85 X PB/100 XRX (Bi-Bo)/Bo... Bi = The official retail price of bitumen at the IOC/HPCL/BPL or other depot at .for the 15th day of the middle calendar month of the quarter under consideration. VF = Increase or decrease in the cost of work during the quarter under consideration due to changes in the rates for Fuel and Lubricants. Note: For the application of this Clause the price of HSD9 has been chosen to represent Fuel and Lubricant Group. 10 This could be appropriately changed to any other item depending on the nature of the work.. Adjustment for Plant and Machinery Spares Component: (vi) Price adjustment for increase or decrease in the cost of plant and machinery spares procured by the contractor shall be paid in accordance with the following formula: Vp = 0....... PF = Percentage of Fuel and Lubricant component of the work..for the 15th day of the middle calendar month of the quarter under consideration... 8 on the Day 30 days prior to the date of opening of Bids.85XPp/100XRX(Pi-Po)/Po.110 Adjustment for steel component: (iv) Price adjustment for increase or decrease in the cost of bitumen shall be paid in accordance with the following formula... 8 .... Ministry of Commerce and Industry. Government of India.. Adjustment of Fuel and Lubricant component : (v) Price adjustment for increase or decrease in cost of Fuel and Lubricants shall be paid in accordance with the following formula: VF = 0. VB = Increase or decrease in the cost of work during the quarter under consideration due to changes in the rate for bitumen. New Delhi. Where VP = Increase or decrease in the cost of work during the quarter under consideration due to changes in the rates for plant and machinery spares.. Pi = The all India average wholesale price index for Heavy machinery and parts for the quarter under consideration as published by the Office of the Economic Advisor.. 7 Insert the nearest location of POL Depot Insert the location of the nearest POL Consumer pump 9 This could be appropriately changed to any other item depending on the nature of work.. Bo = The official retail price of bitumen at the IOC/HPCL/BPL or other depot at . Ministry of Commerce and Industry..85XPF/100XRX(Fi-Fo)/Fo. New Delhi PB = Percentage of Plant and Machinery Spares component of the work. Where.7 on the day 30 days prior to the date of opening of Bids.... Fi = The official retail price of HSD t the IOC/HPCL/BPL or other consumer pump at. FO = The official retail price of High Speed Diesel (HSD) at the IOC/HPCL/BPL or other consumer pump at.. Where. Note: For the application of this Clause index of Heavy Machinery and Parts10 has been chosen to represent the Plant and Machinery Spares Group. Government of India.... PB = Percentage of bitumen component of the work.. VB = 0.. P0 = The all India average wholesale price index for Heavy machinery and parts for the quarter preceding the date of opening of bids as published by the Office of the Economic Advisor.. bitumen and Fuel and Lubricants... Mo = The all India average wholesale price index for all commodities for the quarter preceding the date of opening of bids... .... Steel – Ps ... bitumen and Fuel and Lubricants11............ Bitumen – PB .... % 6.. % 4........ The following percentages 12 will govern the price adjustment for the entire contract:13 1... % TOTAL 100%16 11 12 13 14 15 16 Add...... Where VM = Increase or decrease in the cost of work during the quarter under consideration due to changes in the rates for local materials other than cement..... % 3...... Government of India.. % . Fuel and Lubricants – PF .....111 Adjustment for Other materials: (vii) Price adjustment for increase or decrease in the cost of other materials other than cement.85 X PM/100 X RX (Mi – Mo)/Mo...... % 2. as published by the Office of the Economic Advisor.. Ministry of Commerce and Industry... It shall not be changed even if there is change of scope of work during execution.. Other materials – PM ...... steel. Plant and Machinery Spares – Pp15 7. Ministry of Commerce and Industry.. procured by the contractor shall be paid in accordance with the following formula: VM = 0... Government of India. % 14 5... This could very from 5% for normal works and 10% for highly mechanized operations in the work This could vary from 15% for normal works to 30% for highly mechanized operations in the work The total of the percentages for the various components of the works should be 100.......... steel bitumen and Fuel and Lubrivants) of the work. The components could be added or deleted or changed depending on the nature of the work.. New Delhi Mi = The all India average wholesale price index for all commodities for the quarter under consideration as published by the Office of the Economic Advisor... New Delhi PM = Percentage of other material component (Other than cement...... The percentages have to be approximately worked out on the estimates of cost and incorporated in the tender document before issue... Cement – Pc .. Labour – PL .. delete or change depending on the nature of work...... steel. 1998pâ A{ꩵâ{âªyê Epâ°yâK{ê. pÖmX ÉâdÖËpâÀâó uÖîgê³ùûpâ°Àâ ``dâ}ÖËrdâ ÉÖÀâËm¾dâ ÉâªgâZÝâgâÔâ¶[ ~Öpâ{âµâËdâyê %º¾Ìâ°Àâ° 1999'' þ}êQÈêÌâ°¶[ È곩d곩~âÌ곩РEÈÖfêÌâ° ÉâªþyêgâÔâ}â}â° Àâ°yâ°K ÉÖÀâ°ÐZ dêôÄÚÌâ°}â°Q ~âîÍâ"îÉâ°Àâ dÖÌâ°ËÀâ}â°Q Àê°©Èê e{âÈÖ{â A{ꩵâ{â¶[ pâ×ÉâÈÖÐ{âM ÉâÆ°»gê ÀâþÉâ°Àâªyê ¾xËÌâ° dâêôgê³Ôâ\ÈÖÐ{ê. Àâ°ªm°Ôâ ÉâdÖËpâ{â %º©}â dÖÌâ°Ë{âúË. .. dê. E{âpâªyê Éâ{âî ÉâÆ°»Ìâ°}â°Q ~âó}âpÒ pâ×Éâ·° o A{ꩵâ .. 1...112 dâ}ÖËrdâ ÉâdÖËpâ ÆÍâÌâ° : È곩d곩~âÌ곩РEÈÖfêÌâ° ÉâªþyêgâÔâ}â°Q ~âîÍâ"îÉâ°Àâ ±gê$ Éâ½ÊÉâÈÖÐ{ê ÉâÆ°»Ìâ° ~âó}âpÒpâkâ}ê e{âÈÖÐ{ê: ÉâdÖËpâ{â A{ꩵâ ÉâªfêX È곩E 315 ûApÒUª 96 .2002pâ¶[ ¾©vâÈÖÐ{ê. ApÒ. ¾Àâ½yâK %º©dâ_dâ EªÊ¾Ìâ°pÒ -¥ Éâ{âÉâXpâ° ¥ Éâ{âÉâXpâ° 3...12.. pÖ|Ödâ½ÍâJ. o ÉâÆ°»gê dÖÌâÃÖËkâpâÇêgê %ÀâµâXÀÖgâ±Ýâ°{Ö{â Àêkâ+Àâ}â°Q È곩d곩~âÌ곩РEÈÖfê Èêdâ" ú©¸Ëdê ``2059 (Ì곩m}ê©yâpâ) ''Materials & Supplies" %Ú ÅâîÉâ±Ýâ°{ÖÐ{ê. úZ©dÖªyÒ. o ÉâÆ°»gê I~â Àâ°°ÙX EªÊ¾Ìâ°pÒ pâÉêKgâÔâ° Éâª~âdâË Àâ°yâ°K dârDvâ.. A¼Ëdâ EÈÖfê o ÉâÆ°»Ìâ° dÖÌâ°ËÀÖXÄKÌâ°° ¬}Öªdâ 20-.. ÝÖgâ³ Àâ°°ÙX EªÊ¾Ìâ°pÒ Éâª~âdâË Àâ°yâ°K dârDvâgâÔâ° ({âÑ_x) EÀâpâ° Éâ{âî ÉâÆ°»Ìâ° dÖÌâÃÖËkâpâÇêgê %gâyâXÀÖ{â ÉâLÔÖÀâdÖµâ ÀÖÝâ}â ÉñdâÌâ°Ë û±Tª¬ ÝÖgâ³ %ÀâµâXÆpâ°Àâ Èê©Ù}â ÉÖÀâ°ÐZ EyÖX¬gâÔâ}â°Q a{âÐÉâ·° Éâ³dâK dâZÀâ° dêôgê³Ôâ\·° A{ê©úû{ê. ÉâÆ°»Ìâ°° ~âîÍâ−yê dâpâvâ° ÉâªþyêgâÔâ}â°Q 3 »ªgâÔâ¶[ ÉâdÖËpâdê" Éâ¶[Éâ°Àâó{â°.. {âÑ_x Àâ·Ìâ° EÀâpâ° ÉâÀâ°}â]Ìâ° %ºdÖîÌâÃÖÐpâ°yÖKpê... È곩d곩~âÌ곩РEÈÖfê (}âÏÖvÒË) ...-1998 kÖ¶KÌâ°¶[pâ°Àâ EÈÖfê ÉâªþyêgâÔâ}â°Q Àâ°yâ°K dârDvâ. Éâ{âî ÉâÆ°»Ìâ°° yâ}âQ Àâpâ¬Ìâ°}â°Q ÉâdÖËpâdê" 199pâ¶[ ¾©Úpâ°yâK{ê.. ÉâdÖËpâ{â e{âÈÖ{â A{ꩵ⠬}Öªdâ 20-.. úZ© s. ÏêªgâÔâ³pâ° ¬}Öª .. ÉâdÖËpâ{â A{ꩵâ ÉâªfêX Ävâ±°[Ú 22 ApÒÚUÁÒ 2004 ÏêªgâÔâ³pâ° ¬}Öªdâ: 23.. }ÖpÖÌâ°x}Ò.Æ...09.... Ƶê©ÍÖºdÖî....08...........08.... È곩E A¼Ëdâ d곩µâ. Ƶâ]ÏÖXªdÒ yâªvâÀâó ¾©Úpâ°Àâ "Country Procurement Assessment Report for Karnataka State (CPAR)}â¶[ úÁÖpâÉâ°b ÀâÃÖÚpâ°Àâªyê ÉÖÀâËm¾dâ ÉâªgâZÝâÇêÌâ°¶[ Éâ°|ÖpâÇê dêôgê³Ôâ\·° pÖmX Àâ°rD{â¶[ Éâ½ÊÉâÈÖÐpâ°Àâ "Standing Committee for implementation of CPAR" ÉâÅêÌâ°¶[ dâpâvâ° ÀâÃÖ~âËÚyâ EÈÖfÖ ÉâªþyêgâÔâ}â°Q uÖîgê yâpâ°Àâ ±gê$ kâ×ËÉâÈÖÐ{â°M. ¾Àâ½yâK Àâ°°ÙX EªÊ¾Ìâ°pÒ ¥ %|âXdâ_pâ° 2. o ~êôÑ dârDvâ Àâ°yâ°K pâÉêKgâÔâ ÉêRû¸dê©Íâ}ÒgâÔâ}â°Q EÈÖfêÌâ° dÖÀâ°gÖîgâÔâ¶[ ¬}Öªdâ 1-11-2002îÀâ°{â uÖîgê ±pâ°Àâªyê %ÔâÀâÚûdê³Ôâ\·° ogÖgâÈê© ÉâdÖËp⬪{â Éâ°yê³K©ÈêÌâ°}â°Q ¬}Öªdâ 18.. pâÉêKgâÔâ ÉêRûÕdê©Íâ}ÒgâÔâ}â°Q ~âîÍâ"îÉâ·° ÉâÆ°»Ìâ°}â°Q pâ×ÉâÈÖÐyâ°K. úZ© ².2004 ~âZÉÖKÀâ}êÌâ°¶[ ÆÀâîûpâ°Àâªyê È곩d곩~âÌ곩РEÈÖfêÌâ° ÉâªþyêgâÔâ}â°Q Àâ°yâ°K ÉÖÀâ°ÐZ dêôÄÚÌâ°}â°Q ~âîÍâ"îÉâ°Àâ Éâ·°ÀÖÐ o þª{ê pâ×ÉâÈÖÐ{âM ÉâÆ°»Ìâ°}â°Q dêÔâdâªvâªyê ~âó}âpÒ pâ×û A{ꩵâ Ýê³pâÚÉâÈÖÐ{ê.Ê... . Economist. .G. The Deputy Secretary-III.04. Finance Department by M/s SG Associates.. notified that provisions of the Karnataka Transperency in Public Procurements Act shall not apply for engaging consultancy services in connection will Review of KFC by the FD. ORDER NO. 2. it has been recommended that the old codes and manuals – such as the Karnataka Financial Code (KFC). the Govt.10. The Consultants shall take into consideration all the necessary and appropriate actions for the said revision as per the Terms of Reference (TOR) attached to this Order and the guidance from the Working Group from time to time. The consultants shall complete the work in 6 months from the date of this Order. Suggestion was also made for including the revision of the Manual of Contingent Expenditure (MCE) along with KFC. Gopalswami and Associates).2004 addressed to Secretary. (ii) above. Bangalore. (S. Expenditure. 3. Bangalore-85 as Consultants for a period of six months with immediate effect for taking up the revision of Karnataka Financial Code (KFC) VolumesI & II and the Manual of Contingent Expenditure (MCE). Read: E-Mail dated 17 November 2003 from Ms Paramita Dasgupta. may be revised. Finance Department shall be the Member-Secretary of the Group. MCE etc. 4. PWD 146 SO/FC 2003. for procurement reforms. New Delhi to Secretary. as this firm has persons with adequate expertise and experience for taking up the task. FD 71 FC-3 2004 dated 13 February 2004. M/s. Banashankari III stage.113 PROCEEDINGS OF GOVERNMENT OF KARNATAKA Sub: Revision of Karnataka Financial Code and Manual of Contingent Expenditure – regarding. Expenditure. In Finance Department there shall be a Working Group to review the completed revised draft chapters of the Codes and Manuals and suggest improvements/changes. In the Notification read at no. Associates (S. Associates conveyed their confirmation for the same in their letter read at no. Gopalswami and Associates). Finance Department. the Manual of Contingent Expenditure (MCE) etc. Government in its letter read at no. following orders are issued. World Bank Office. Preamble : In its Country Procurement Assessment Report (CPAR) given to the State Government by the World Bank. S.2003 to M/s SG Associates. ii) Govt Notification No. S. (iv) above. Bangalore. Standing Committee appointed by Government for looking into the implementation aspects of CPAR has decided that Working Groups may be constituted for Review of KFC. PWD 146 SO/FC 2003 dated 30. (iii) above. Bangalore to consider taking up the work on consultncy basis. iii) Govt letter No. Bangalore DATED 27th December 2004 Government is pleased to appoint M/s. iv) Letter dated 21. if any.G. requested M/s SG Associates. After examining all aspects in the matter. approved for printing. 20% advance shall be given to the consultants after the agreement is furnished. The Working Group shall furnish their comments on the draft chapters within 10 days time. . The Consultants shall submit to the Government the finally approved chapters of the KFC Volumes-I & II and the MCE in book from in six hard copies and a soft copy (CD). ii) 30% after all the chapter of KFC Volume –I are revised. The consultants shall arrange to furnish the chapters keeping in view the overall time limit of 6 monts. Draft agreement Shall be got approved from the Finance Department. Finance Department. v) 10% final payment after submission of the final copies.6. 9. approval for printing. Research Cell and Other charges-051-General Expenses" under Non Plan. By Order and in the name of the Governor of Karnataka (Ashok S. This order issues under the powers delegated to the Secretary to Government. 7. approval for printing. The consultant shall undertake to enter into an agreement to take up the review of KFC & MCE as per the TOR (in Annexure) on a stamp paper of Rs.100/-.07. iv) 20% after completion of review of MCE.1996 and FD 1 TFP 2003 dated 12. PWD FC. 8. Six lakhs and sixty thousand only) as consultation fee to be paid in installments as per the following arrangement: i) 20% as advance for commencing the work. Expenditure on account of this matter may be debited to the provision "2052-00-0900-07-FD – Library. The consultants shall submit eight copies of the draft chapters as and when they are ready for review by the Working Group.2003. The Consultants shall be paid a total sum of Rs. 6. Finance Department under FD 1 TFP 96 dated 10. iii) 20% after completion of review of Volume-II of KFC.60 lakhs (Rs.114 5.06. Jivaragi) Under Secretary to Government. Withdrawal and disbursement of funds. After the issue of the compilation several changes have taken place in the State's financial and accounting set-up. Similarly the manual of Contingent Expenditure also needs revision. iii) Government shall take steps to provide requisite material to the consultants to enable them to update the Code and the Manual with reference to all the correction slips and other Government ordrs. Many of these changes have been effected as response to the emerging requirements in dealing with the finances of the State which have arisen both by expansion of Governmental activities and by increasing complexity in transactions. etc. Government proposes to entrust the task of revising the Code and the Manual and suggesting modifications to these to a team of consultants who are well versed with the financial rules and procedures of Government. ii) In addition. the nominated officer may invite representatives from the concerned departments to attend meetings of the group/committee. Obligations of Government: i) The Government shall nominate and officer to coordinate and monitor the work of Consultants.115 Annexure Terms of Reference for Revision of Karnataka Financial Code and Manual of Contingent Expenditure The Karnataka Financial Code was compiled and issued shortly after the present State of Karnataka was formed in 1956 on the re-organization of States. issued subsequent to the last revision made to the Code and the Manual. . accounting thereof. all assistance to them in their work. The nominated officer shall be responsible for liasing with the consultants and providing from the Government end. as they exist now. the role of audit and the relations of departments with audit. The revised Code and the Manual should not only capture and present changes effected over the years but also be oriented to meet the future requirements. the duties and responsibilities of Government servants etc. Although corrections to the Code consequent to these changes have been issued from time to time. Depending on the topics that are slated for discussion. notifications. the Government shall constitute a small working group or consultative committee of a few selected senior officers to consider and give decisions on discussion papers. Scope of the work: The scope of the work shall include Revision of Volume-I of the Karnataka Financial Code containing the main provisions as well as Volume-II containing forms and appendices and the Manual of Contingent Expenditure. It is therefore felt necessary to review the Code in its entirety and to modify it suitably in a manner that would ensure thaat it serves the purpose fully in the present day context. The changes relate to areas such as the arrangements for receipt and custody of Government revenues.. there is a need to review the provisions of the Code to make it cater adequately to the needs. The nominated officer mentioned above shall be the Member-Secretary of the group/committee. which may be presented by the consultants. 116 Obligations of the Consultants: The approach to the task and the plan of action to be followed for revising the Code and the Manual would be broadly as under.. . procedures. iii) The consultants shall suggest deletion of. (v) Representatives of the relevant departments shall be associated in the discussions concerning changes applicable to particular departments. footnotes and provisos. etc. minimized. vi) The Consultants may suggest rearrangement of subject matter including rearrangement of forms and appendices wherever required. notifications. xi) The entire work shall be completed within a time frame of six months commencing from the date of entrustment of the assignment to the consultants.. changes and innovations that are likely to come through in the near future may also be considered. transfer of responsibilities to local Government and autonomous institutions. the contents thereof shall be discussed and cleared by the working group. the paragraphs may be made self-contained and the number of notes. or modifications to. initially and from time to time thereafter. which have become redundant or have outlived their purpose or utility. In this exercise.. etc. ECS payments.. provide a set of six copies of the Revised Code and the Manual to Governemtn for further action at Government level. This activity may be taken up and completed independently without allowing it to be influenced by the pace at which the other activities progress. ii) The consultants shall make a thorough review of the existing system of rules and procedures relevant to the task assigned to them. it is not enough if the changes or innovations introduced already are considered. computerization of accounts at the treasury level. viii) As and when each Chapter is given a final shape. after Government clears the changes and deletions. iv) The consultants shall propose suitable changes in the rules. etc. The procedures as laid down in the State rules as well as the Central rules will have to be Studied. all rules or provisions. taken an overall look at the existing compilation with a view to identifying the areas that require substantial changes. etc. Some of the developments to be taken into account in this exercise may include receipt of moneys through collection kiosks or credit cards. The consultants shall. A holistic approach to the task is required. vii) The Consultants shall prepare a broad structure for the Code and the Manual before going to the chapters and the structure shall be discussed and cleared by the Working Group. x) The consultants shall. in the light of new innovations and changes. ix) As far as possible. netwok linking of departments. A conscious attempt may be made to frame the provisions in simple and straightforward terms. issued subsequent to the last revision made to the Code and the Manual. i) The consultants shall update the Code and the Manual with reference to all the correction slips and other Government orders. requirement stipulated by the Central Government and external financing agencies. etc. To the extent that they an be anticipated. say once every three years. .117 xii) The consultants shall suggest the procedure and modalities of updating of the Karnataka Financial Code and the Manual of Contingent Expenditure also regulary. Form PWG-27 in accordance with the rules in paragraph 209. (viii) No erasures of any kind should be permitted. as the measurement book may have to be produced as evidence in a court of lawl. the description of the item as per tender has to be written in the hand of the AE. are made on the basis of measurements recorded in measurement books.10 to 15 lakhs and at least one Diploma Holder on every work or group of works together costing more than Rs. He will also work out and enter in the measurement book the figures for the contents or area column: (vi) Measurements for all works and repairs should in the first instance be taken by subordinates in charge and checked by Sub-Divisional Officers and Divisional Officers [Assistnt Executive Engineer (AEE) is to check 75% in Case of works costing Rs. EE should check 25% of the total value of work done if the works cost more than Rs. it is incumbent upon the person taking the measurement to record the measurements clearly and accurately. 2.000 and more if it is A contract work. 25.000. (ii) The measurement should be considered as a very important initial account record since it is the basis of all accounts of quantities of work done whether by daily labour or by piece work or by contract and of materials received which have to be counted or measured: (iii) All measurements should be neatly taken down in the measurement book issued for the purpose and nowhere else. Paragraphs 208 & 209 of the Karnataka Public Works (KPW) Accounts Code Volume I.118 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Sub: Procurement Reforms – Measurement of Works and Supplies – Use of Measurement Books Preamble : 1. mistakes should be corrected by drawing the pen through the incorrect entry. Executive Engineer (EE) is to chekc 25% of items: (vii) All final measurements irrespective of value to be recorded by Assistant Engineer (AE) and AEE should check-measure 100% for all works estimated to cost Rs. recording of measurements and storage of measurement books. (iv) The entries should be recorded in the measurement book at the work spot indelibly in ink so as to render it difficult to tamper with or to make unauthorized additions or alterations in entries once made: (v) As all payments for works or supplies are based on the quantities recorded in the measurement book.15 lakhs and above and Class III Contractor should engage one Engineering Graduate for every work costing Rs. and inserting the correct figures or words between the lines. . The salient instructions are: (i) Payments for all work done otherwise than by daily labour and for all supplies. At least 50% of the works are to be checked. 5000 and more if it is a departmental work and Rs.2 lakhs but less than Rs. (ix) Apart from measurements. Paragraph 5 of Appendix IV-A of the KPWD Code Volume II Rules for Registration of Contractors in PWD lay down that Class I and II Contractors should engage at least one Engineering Graduate of every work costing Rs. 5000 or more and 50% in case of other works and repairs. Paragraphs 300 & 301 of the Karnataka Public Works Departmental (KPWD) Code Volume I and Appendix VII of the KPWD Code Volume II detail the instructions regarding issue of measurement books.10 lakhs. A reliable record is the object to be aimed at. 25. Societies and Local bodies are using the measurement books for recording the measurements as per provisions of KPWD Code. 1. (b) The current provisions of the KPW Accounts and Departmental Codes shall continue to be applicable for all Works Contracts of value Rs. This order shall supersede the current instructions contained in the Codes and Manuals. examined the recommendations of the Sub Committee in detail. (iii) If the Contractor does not submit the bills within the prescribed time.119 3. Public Works Department by Government in GO No PWD 122 SO/FC 2003 dated 8. The Standing Committee constituted in GO No.2003 to look into certain technical issues like measurement books. The Sub-Committee constituted under the Chairmanship of Secretary. Public Sector Undertakings. and Local bodies for recording the receipt of goods and equipment and payments of invoices are being made on the basis of verification of receipt of materials. The Working Group constituted in GO No. Bangalore.25 lakhs And less. a sub-ordinate to measure up the said work. FD 56 Pro. 4. the Department may prepare the bill. It is observed that the measurement books are not being used in most of the Government Departments. Boards. PWD 1359 SO/FC 2001 dated 5. Based on the recommendations of the Standing Committee this order is issued for recording of measurement of Works and Supplies. time and effort consuming. PWD 1359 SO/FC 2001 dated 14. (c) In respect of Works Contracts of value more than Rs25 lakhs.5. state: (i) A bill shall be submitted by the Contractor on or before the 15th of each month of all items of work executed in the previous month. do not use the currently available information Technology and has made recommendations for improvement of the system. from the Procurement Reforms Action Plan on the recommendations of the Country Procurement Assessment Report (CPAR) and make recommendations to the Standing Committee has examined the issue. the approved tender document for works. Cell 2004. The countersignature of the Contractor shall be obtained in the measurement book concerned with reference to which. which shall be binding on the Contractor in all respects. felt that the present provisions in the Codes and manuals regarding measurement of works and supplies are archaic. 18th January 2005.8. Clauses 7(a) and 7(b) of PWG-65 Form. The countersignature of The Contractor or the said agent in the measurement book shall be sufficient proof to the correctness of the measurements. Government Order No. However most of the Government Departments. 5.8.2002 for implementation of the said Action Plan reviewed and endorsed the recommendations of Sub-Committee. the EE may depute within seven days of the prescribed date. Public Sector Undertakings. Also there are no consistent practices followed by various procurement entities of the State. the Contractors shall be made responsible for submitting bills duly supported by hard copy of detailed measurements of work using electronic spreadsheets and making . However the compliance to the provisions of the Manual is resulting in lot of clercial work by the technical officers whose primary duty is supervision of work in the field.2002 for implementation of the said Action Plan on the recommendations of CPAR. (a) A uniform procedure for recording of measurements for works and supplies should be enforced in all the Organizations coming under the purview of the Karnataka Transparency in Public Procurements Act 1999. (ii) The details furnished by the Contractor in the bill should be measured by the subordinate in the presence of the Contractor or his duly authorized agent. Societies. Boards. In any case the responsibility for the correctness of the measurements shall be entirely of the AssistantEngineer. 2. which shall be considered as the measurement books. which shall be binding on the Contractor in all respects. the invoices detailing the items supplied with specifications. The Contractor shall submit diskette/CD ROM in addition to the hard copy. (f) The countersignature of the Contractor or his authorized Agent shall be obtained on each page in the hard copy of the detailed measurement spreadsheets prepared by the Assistant Engineer. 4. (d) The Assistant Engineer in direct charge of the work shall take independent measurements of the work and enter the same in the electronic spreadsheet and make computations thereof. Similarly the diskettes/CD ROMs shall be indexed and stored. which shall show the details of the bills. as prescribed in the Codes and Manuals. This order shall apply to all Procurement Entities as defined in Section 2(D) Chapter 1 of the Karnataka Transparency inPublic Procurements Act. rate and amount would be sufficient. 3. 1999. This order shall be appropriately incorporated in the Conditions of Contract of Tender documents. By Order and in the name of the Governor of Karnataka (Sudhakar Rao) Principal Secretary to Government Finance Department. The contents of this order shall be appropriately incorporated in the Karnataka Public Works Accounts and Departmental Codes and other Manuals. This order will apply prospectively and shall not be applicable for contracts concluded in the past. and computations would be made accordingly'. quantitiy. as referred to in the Manuals and Codes. numbered and stored. (e) The measurements would be checked by the officers from the hard copy of the spreadsheet as per present stipulations. (h) In repsect of supplies – goods and equipment. Entry in measurement books need not be insisted upon. The Assistant Engineer can make use of the detailed measurements as given by the Contractor in the diskette/CD ROM. reference to measurement books and vouchers. (g) The hard copies of the detailed measurement spreadsheets shall be bound. This shall be checked and inspected by the receiving authority and accounted as per normal accounting procedure prescribed by Government/ Corporation/ Board/ Society Local body from time to time. .120 computations thereof. 5. An index shall be prepared for each Contract/Work. The type of contract chosen will affect the subsequent stages of procurement. This circular details the various forms/types of contracts and gives guidance for their choice. • The status of design (preliminary or final). Paragraph 168 of the Karnataka Public Works Departmental Code Volume I discusses in brief only two types of contracts viz.g. industrial plant etc. therefore. implementing agencies have a choice of procurement method and or the types of works contract to be used. which the Employer can exert during contract implementation. Lump-sum and Schedule (Item rate) 2. Primary Health center. It is important.g. building. Major Hospital. Feeder road. Types of contracts and their choice: In the preliminary planning stages of procurement. and to some extent the degree of influence. 3. depending on prevailing circumstances..121 GOVERNMENT OF KARNATAKA No: FD 57 Pro-Cell 2004 Karnataka Government Secretariat. Expressway.2005 CIRCULAR Subject: Procurement Reforms – Types of Contracts and Guidelines for their choice ***** 1. Primary School. Bangalore. design and supervisory resources of the Employer. or Urban Water Supply etc).). at an early stage in the planning process to consider carefully the types of contract that might be suitable for use and the factors affecting the choice of type of contract. which may affect/influence the choice of contract type by an Employer or implementing Agency are: • Nature and complexity of the works (e. • The degree of the definition of the works and th element of risk/uncertainty. Development projects of the Government Departments/Undertakins and local bodies are some times complex and necessitate the use of other alternative forms types of contracts. highway. dated 20. Pump House./or budget constraints. • The technical capability. Vidhana Soudha. • The previous experience of the Employer in a particular type of contract. .01. • The financial resources available and. Some of the general factors. • The size and duration of the contract (e. the content of the tender document. 2. specifications are completely written up and the site conditions fully explained so that disputes shall not arise. the advantages and disadvantages and the circumstances/situations in which they can be best used. Normally used for small. and 3. are relatively minor). Relatively easy to administer for payment purposes (no or little measurement of work performed). Not suitable where potential future risks and changes are difficult to forcecase (Tenderers may inflate their prices to cover expected costs which do not materialize). bus shelters.122 The following is a list of common types/kinds of works contracts. Designs for smaller works must normally be complete and drawings prepared in detail by he Employer. The payment schedule is normally a proportion of the contract price related to progressive stages of completion commonly termed as "Schedule of Activities" 5. . 2. Lump-sum Contract or all inclusive contrcts. small bridges. Inflexible to design changes (major variation are difficult to price) 2. but major quantities are some times indicated for the convenience of tenderers on large works 4. as a basis for tendering Circumstances/Ar eas in which to be used. standard housing involving type designs etc. Type Kind No of contract . Sl. Detailed works and building or other form of construction. Two modifications of the Lump-sum contract may be introduced to cope with uncretaities Advantages: 1. short duration (less than a year) well defined. primary schools. where the works Are unlikely to change in quantitiy and specifications and where encountering difficulties or unforeseen site conditions (for example hidden foundation problem) is unlikely. (LS) Features Advantages/Disadvant ages 1. 3. pipe laying. Quantities are not normally given for small works. 1. drawings and specifications within the stipulated time. if any. Requires less documentation (normally no detailed Bill of Quantities) Disadvantages: 1. It is essential that the work must be defined accurately. their features. health clinics. transmission towers. 3. Advance knowledge of the fixed contract amount for budget forcecasting (variations due to quantities and price adjustment. Examples of typical Lumpsum contracts are culverts. The tenderer is required to quote a fixed sum for execution of the work. complete in all respects in accordance with the designs. Reasonably accurate cost estimates can be made for planning purposes and under normal circumstances. 5. Type Kind of contract Item Rate Contract/ Unit Rate/ Ad measurem ent (UR) Features during implementation one relating to Quantity variations and other to Price Adjustment. 2. 4. No . against the same quantities of work and completed designs. materials. Advantage: 1. Irrigation. Detailed measurements of all items of work executed by him are recorded and Advantages/Disadvant ages Circumstances/Ar eas in which to be used. 2. 4. The tender price comprises the summation of estimated quantities multiplied by the respective unit rates for all items of work. The unit rates are inclusive of all related inputs (labour. The comparison and evaluation of tenders is normally straight forward and objective: 3. Water Supply and Sewerage etc. LS tenders may also be called for larger works of larger duration such as Industrial Process Plants. It provides flexibility for the contracting parties in handling variations and extra items of work. normally following a TwoStage Tendering procedure with designs prepared by the successful tenderer and with provision for price adjustment (Refer Turnkey contracts) 1. Most common type of contract in general use internationally in the public sector works under conditions of moderate perceivable risk in sectors such as Transportation. . Power. 6. equipment usage and a proportion of overheads and profit) 3. Tenders Are competing on the most equitable basis. 2. Regular progress payments for work completed help the contractor's cash flow.123 Sl. The tenderers are invited to quote unit rates for carrying out the Employer's estimated quantities of different items of work to be executed. the 3. Employer can expect only minor discrepancies between the estimate of cost and the lowest bid and between contract price and the final basic cost. Type Kind of contract percenage Tender or percentage Rate Contract Features Advantages/Disadvant ages payments are made to the contractor as per his quoted rates. Possibility of unbalanced tender submission is eliminated Circumstances/Ar eas in which to be used. Higher supervisory cost than Lump-sum. Tenders containing unabalanced unit rates and front-end loading create problems in comparison and evaluation. such as Earthwork. 4. . Advantages: 1. 3. Disadvantages: 1. The Contractors are required to submit their offers to carry out the work as per the estimated rates (which is usually on the current Schedule of Rates) or at some percentge above or below the Schedule of Rates. The unit rates may be fixed for short duration (less than one year) contracts or adjustable for variations in the indexed price of inputs over longer duration contracts. or by increase in quantities of work for which higher rates have been quoted. Higher cost for documentation than Lump-sum is preparing the detailed Bill of Quantities. Amenable for manipulation either by change of design. when the items of work are few and belong to the same category or classification. No . 5. Decision on the lowest tender is immediate.124 Sl. or concrete or masonry etc. Appropriate for small value contracts. or decrease in quantities of work for which lower rates have been quoted. 2. due mainly to the measurement of work performed. 3.Simple to comprehend for the contractor and submit his tenders. 3. 2. The circumstnces overheads. Early mobilization of reimbursab provides For the construction resources le plus fee periodic is possible in commonly reimbursement of emergency situations termed as the contractor's and no works that are "Cost Plus" actual costs for CP measurable imputs to poorly defined. to cover his Associated Disadvantages: 1. such as unknown ground conditions (tunneling). bridges. (incentive) fee. Type Kind of contract Features Advantages/Disadvant ages Disadvantages: 1. materials. Two or more contractors may quote the same rate in order to get part of the work at the higher rate. dams. The contractor is equipment. 1. No . which required in private or (iii) a variable sector.125 Sl. 2. Division of work among those contractors who have quoted the same rates may be difficult. 3. involve high rist or high the works. independent with a selected of The total contractor than to measured costs. 4. such as returns. 2. Quoting the same percentage above or below for different categories of items of work is irrational 4. The "Fee" may contracting are more be either (i) a fixed conducive to sole source negotiations fee i. Amenable for manipulations to get the items changed to get advantage of higher rates. Circumstances/Ar eas in which to be used.e. expenditure and together with a Fee" assures little or no risk. or large unforeseeable . Cost Plus contracts are appropriate in open-ended emergency situation such as structural collapse of or damage to buildings. Cost This type of contract Advantages: 1. fuel etc. favouring cost plus management and profit.. spare reimbursed all parts. or competitive tendering (ii) a percentage of is normally the measured costs. or breach of canals and in circumstances where works are exposed to conditions of great uncertainty or unquantifiable risks. labour. when an early start is required on projects which are not completely defined or designed but are expected to be highly remunerative. switch yards. 2. No . . the contractor has little incentive to produce quality or timely work: 3. Management is simple. Disadvantages: 1. boilers.126 Sl.) including relatively minor works involved in their erction or installation and commissioning at a site or sites. Water Pumping Plants. usually on a negotiated basis with a selected contractor. generators. Water Treatment and Sewerage Treatment Plants. pumps. Telecommunicati on projects etc. 2. the contractor benefits from higher costs and consequently has limited incentive to be cost effective. 1. transmission towers. With a CP percentage fee. such as hotels. If the CP fee is fixed. The Employer needs additional supervisory staff to monitor and verify actual costs. 5. innovative technical processing and manufacturing plants etc. Type Kind of contract Supply and Erect/ Install. Direct Cost is likely to be more Appropriate for Power Plants. 4. the contractor the CP fee is fixed. or which reduces with cost overruns 2. the contractor has little incentive to produce quality or timely work: 3. pipelines. They are also used in private sector. Advantages: 1. This type of contract provides for the supply of major items of manufactured or prefabricate goods (such as turbines. which increases if saving materializes in an agreed Estimate of the total contract payments. Single responsibility for the supply of goods and the execution of related works in order to avoid conflicts and delays in the event of non-compatibility. price fluctuations etc. casinos. telecommunication works etc. Commission and Test Features Advantages/Disadvant ages Circumstances/Ar eas in which to be used. With a CP percentage fee. 3. Pre-qualification is an essential feature of the tendering process in order to select qualified combinations of Engineer Architect/ Contractor. Sea Ports. Design and 1. Airports. 6. or fabricated to the design of the Employer on an LS basis. and other major Infrastructure works . but major works should normally be undertaken to the design of the Employer on "Item Rate/Unit Rate basis.127 Sl. Viaducts. Comprehensive site and sub-soil survey is normally Advantages/Disadvant ages Circumstances/Ar eas in which to be used. Navigation works. major bridges. The Employer Build wishes to explore on a competitive basis. Competitive proposals result in economy and better design and aesthetics. Advantages: 1. The goods would normally be the subject of performance specifications. Construct the most innovative designs and the special expertise and technology of individual contractors which may not be available to the Employer's own Engineers/Arohitects 2. No . Minor works might be quoted LS based on the design of the Supplier. Complex Fly overs. Type Kind of contract Features 2. 3. . Appropriate for important buildings. Commissioning and/or testing of the completed work is a normal requirement before acceptance. Aquducts. 128 Sl. No . 7. Type Kind of contract Tumkey Features Advantages/Disadvant ages Circumstances/Ar eas in which to be used. provided as a part of tender document, which should also include the parameters of structural design and loading. 4. Competitive design and lump-sum tenders are called from qualified tenderers who provide comprehensive design calculations, quantities and drawings. 5. Tender evaluation includes: design checks, the quantification of design errors, times of completion, payment schedules etc., and an assessment of the aesthetics of different proposals. 6. Tenderers are sometimes compensated on a sliding scale according to merit, for the preparation of responsive proposals Advantages: 1. Competitive proposals result in economy and better design and aesthetics. Appropriate for important buildings, majorbridges, Aqueducts, Viaducts, Complex Fly overs, Navigation works, Sea Ports, Airports, and other major Infrastructure works 1. Tenders invited for Alternative systems and processes to provide satisfactory end product requirements and therefore undersirable or impracticable to Advantages: 1. The Employer is able to choose the best available processes and thus effect economy. Appropriate for procurement of complex Industrial Process plants such as Steel mills, fertilizer. food processing coal bunkering, 129 Sl. No . Type Kind of contract Features prepare definitive designs and complete technical specifications in advance. 2. Two stage tendering procedure is followed, first inviting unpriced technical proposals and outline designs which are subject to clarification and adjustment by the Employer followed by the submission of detailed technical proposals and priced tenders in the second stage. 3. The turnkey contrctor undertakes to provide detailed designs, production process plant and equipment, related construction, procurement, licenses, guarantees, recuitment and training of operating staff, commissioning, start-up, initial operation and maintenance and final hand over of the "key" to the Employer for him to "Turn" 4. The contract price is normally quoted LS with periodic payments against specified stages of partial completion. 5. Price Adjustment may also be provided Advantages/Disadvant ages Circumstances/Ar eas in which to be used. petroleum refineries etc. 130 Sl. No . 8. Type Kind of contract Manageme nt Contract Features Advantages/Disadvant ages for contracts of longer duration than about two years. A firm acts in the role of a ''Contractor'' that does not usually perform construction work directly, but manages the work of other sub-contractors while bearing full responsibility nd risk for price, quantity, and timely performance of the contract. 9. Build Operate, and Transfer (BOT) Build Own and Transfer (BOT); Build, Own, Operate and Transfer (BOOT); Build, Own and Operate without any obligation for Transfer; Build, Rent and Transfer (BRT); Build, Lease and Transfer It is essentially a concessionary turnkey type fo contract including financing in addition to the design, construction, operation and maintenance of public and private revenue earning projects. Normally total costs and risks are borne by the private BOT investors over the concessional period which may be some 10 to 20 years. In the Public Sector, the Employer would be the Public Authority otherwise responsible for providing such services, and to whom the facility is transferred at the end of the concession. Circumstances/Ar eas in which to be used. Appropriate for major Infrastructure projects such as Airports, Sea Ports, Expressways, Townships, Power Projects, Telecommunicati on Projects etc. Advantages: 1. It is a Way for overcoming the borrowing capacity budgetary constraints to acquire the needed infrastructure for Growth. 2. If properly structured and priced it can provide significant "additionality" in financial resources while achieving overall cost savings from efficiency in design, construction and operation Disadvantages: 1. They are highly complex from both a legal and financial point of view. 2. They require potential sponsors to spend years and millions in development and To be adopted for profit earning projects such as power generation and distribution, Port facilities, toll roads and bridges, water supply etc. when the Employer Owner has limited budget and or borrowing capacity. The competent authority shall review the recommendations and accord approcal to the proposals of the Procurement Entity. Subsidize and Transfer (BOOST).131 Sl. Operate. Finance Department. BOO (Build Own and Operate. . without any obligation to Transfer). Advantages/Disadvant ages Circumstances/Ar eas in which to be used. Own. the Procurement Entity shall submit proposals to the Competent Authority for adopting the type of contract for particular packages with full justification. Operate. Type Kind of contract (BLT). Build. They present novel issues for host Government /Implementing Agencies as to proper allocation of risks and rewards among parties. Operate and Transfer). (Sudhakar Rao) Principal Secretary to Government. 4. which is a major consideration in tender evaluation Other variants include BOOT (Build. and BT (Build and Transfer immediately. BOOST (Build. 3. Build And Transfer (BT) Features The only source of revenue to the BOT investors is the tariff levied on users of this facility. Subsidize and Transfer). Own. Own.e. who will then use the tender documents appropriate for the type of contract approved Standard Tender Documents for the various types of contracts as detailed above are under preparation and would be circulated in due course of time. No . i. Use of appropriate type of contract and tender documents: Keeping the above Guidelings in view. possibly subject to installement payments of the purchase price) negotiations. 2. The Government is concerned over the deterioration in the quality of the works executed. The inspection is mostly in-house. the approved tender document for works. PWD 1359 SO/FC 2001 dated 14/8/2002 reviewed and endorsed the recommendations of Sub-Committee. The Standing Committee for Procurement Reforms Action Plan based on CPAR.Bangalore. However for most of the works under execution. This will also check corruptive practices and instill public confidence in the system. Supervision Consultants have been employed.. leading to value for money. 4. Dated: 17. Karnataka constituted vide GO No.132 PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA Subject: Third Party Inspection of Works. constituted by Government vide No.2005 Based on the recommendations of the Standing Committee the following orders are issued. . The Departmental Officers have to make periodical checks to ensure the quality of works.02. Bangalore dated 8/5/2003 to examine and make recommendations regarding various aspects of Procurement Reform in the State examined the measures to improve quality control of works. the Departmental Officers (here-in-after called Employer) are responsible for ensuring the quality of the works. in some major projects separate in-house quality control organizations have been set up and in some other projects funded by International Donor Agencies. Clauses 12 (b) and (c) of the PWG 65. The Sub-Committee under the Chairmanship of Secretary PWD. (b) Third Party Inspection shall be mandatory in respect of all works contracts of estimated value more than Rs. The Working Group constituted vide GO No. PWD 1359 SO/FC 2001 dated 5/8/2002 examined the recommendations in detail. Government Order No. To assist the Departmental Officers to ensure quality works. lay down the Guidelines for Inspection of Works. 3. Third Party Inspection of Works and Supplies would ensure adherence to quality standards. Cell 2004.2 crore and all goods and equipment contracts estimated to cost more than Rs..Complaints regardign acceptance of poor quality of works and procurement of goods and equipment not conforming to stipulated specifications continue to be reported. There are no specific provision regarding Inspection of Works in the Karnataka Public Works Department Manual. Goods and Equipment Preamble: 1. In some PSUs third party inspections are adopted on a case-by-case basis and there is no consistency and uniformity of approach. (a) The appointment of independent Third Party Inspectors designated Quality Supervision Consultants would go a long way in assisting the Departmental Officers to ensure adherence to quality standards in construction works and procurement of goods and equipment. FD 55 Pro. 5. Similar is the position in respect of procurement of goods and equipment. inspection of goods and equipment and has made recommendations for improvement of Quality Control. .25 lakhs for an item of goods and equipment. The Contractor is primarily responsible to ensure that the works are executed as per Sepcifications and deliver the Works is sound condition. PWD 122 SO/FC 2003. Bangalore dated 26/9/2003 with amendments issued from time to time thereof. submit reports along with the prescribed checklists duly completed to the Employer for taking action with a copy to the Secretary to the Government Managing Director of the Corporation/Board/Society/Local body. where a specialized in house Quality Control Organization exists is planned or a separate Supervision Consultant has been employed. assembly and commissioning as per the terms of the contract and submit reports along with prescribed cheklists duly completed to the Purchaser with a copy to the Secretary to the Government/Managing Director of the Corporation Board Society/Local body who will be responsible for Review of the Action Taken Reports of the Purchaser. The expenditure on the employment of the Quality Supervision Consultants shall be charged to the cost of the works and goods and equipment under procurement. should be prepared (with the assistance of experts if need be) to ensure that the Consultants perform their obligations satisfactorily. 2. 3. This order shall apply to all Procurement Entities as defined in Section 2(d) of Chapter I of the KTPP Act. (i) The Quality Supervision Consultants should not be employed in respect of works and goods and equipment contracts of projects. This order will apply propectively and will not be applicable for contracts conclude in the past or for tenders already invited. . (f) The Quality Supervision Consultant shall inspect the works periodically. Detailed Checklists. (d) The employment of the Quality Supervision Consultants could be either for one or more contracts for works or procurement of goods and equipment or for procurement made in a term or stipulated period for a Procurement Entity. The Quality Supervision Consultants are there to assist the Employer/Purchaser in discharging their primary responsibility. who will be responsible for review of the Action Taken Reports of the Employer. (e) Heads of the Department of the Government Managing Directors of PSUs Boards/ Societies Local Bodies shall employ the Quality Supervision Consultants and order payments to them on satisfactory performance. This order shall be appropriately incorporated in the Special Conditions of Contract of the Tender documents. PWD 121 SO/Fc 2003.133 (c) Reputed Quality Supervision Consultants (either Individual of Firm) known for integrity and professionalism should be appointed by following the procedures for procurement of Consultancy services issued vide GO No. to be completed by the Quality Supervision Consultants. (g) The Quality Supervision Consultant shall inspect the goods and equipment during manufacture/before dispatch after receipt. The Terms of Reference should be well defined. 1999 4. (h) The employment of the Quality Supervision Consultant and the inspections conducted by them shall not absolve the primary responsibility of the Employer to ensure completion of works of sound quality as per stipulated specifications and of Purchasers for Procurement of goods and equipment of good quality as per stipulations in the specifications. The contents of this order be appropriately incorporated in the Karnataka Public Works Department and other Manuals.134 5. ***** . By Order and in the name of the Governor of Karnataka (Sudhakar Rao) Principal Secretary to the Government. Finance Department. 135 .