Form DGS&D – 1001

 GENERAL TERMS AND CONDITIONS

Governing the Rate Contract and

Instructions to

Direct Demanding Officers and Consignees

(Updated up to 31.08.2003)

Government of India

Department of Commerce (Supply Division)

Directorate General of Supplies & Disposals

New Delhi
 

I N D E X

1.                  SCOPE

2.                  GENERAL CONDITIONS OF CONTRACT

3.                  PREPARATION OF SUPPLY ORDERS

4.                  DESPATCH INSTRUCTIONS AND NOTIFICATION

5.                  ACKNOWLEDGEMENT OF THE SPPLY ORDER AND DELIVERY

6.                  PRE-INSPECTION OF STORES BY THE CONTRACTORS

7.                  PRE-DESPATCH INSPECTION BY QUALITY ASSURANCE OFFICERS

8.                  EXTENSION OF DELIVERY PERIOD

9.                  LIQUIDATED DAMAGES

10.             TERMINATION FOR DEFAULT

11.             PACKING AND MARKING

12.             SYSTEM OF PAYMENT-PREPARATION AND SUBMISSION OF BILLS

13.             EXCISE DUTY

14.             SALES TAX

15.             FALL CLAUSE

16.             SALE OF MATERIAL BRANDED WITH GOVERNMENT MARK

17.             TRANSIT INSURANCE

18.             GUARANTEE/WARRANTY

19.             FORCE MAJEURE CLAUSE

20.             PURCHASER’S RIGHT TO SHORTCLOSE THE RATE CONTRACT

21.             RECEIPT OF STORES & NOTIFICATION OF DAMAGE AND LOSS IF ANY

22.             SUBMISSION OF QUARTERLY DRAWAL REPORTS

23.             RESOLUTION OF DISPUTES

24.             REVOCATION/CANCELLATION OF RATE CONTRACT

ANNEXURES :

I.                    Supply Order Format.

II.                 Postal Addresses of Paying Authorities and Quality Assurance   Officers.

III.               Format for Extension of Delivery Period.

IV.              Proforma for Submission of Drawal Reports.

V.                 Notice-cum-Cancellation Letter.

VI.              Revocation-cum-Cancellation Letter.

GENERAL TERMS AND CONDITIONS GOVERNING THE RATE CONTRACT AND INSTRUCTIONS TO DDOS/CONSIGNEES.

1.       SCOPE:

1.1     The drawals against this rate contract are permitted for the bonafide use of the Central Government Departments, State Government Departments, PSUs, Quasi Public Bodies etc.  Whereas, the Departments of Central Government are authorised to issue the Supply Order directly, the State Governments/PSUs, Quasi Bodies etc. who desire to use this rate contract can raise their demands along with the requisite funds in the form of Bank Drafts in favour of CCA, Supply through DGS&D. DGS&D after ascertaining adequacy of the funds will issue Supply Orders on behalf of the above mentioned bodies. DGS&D will not be responsible for any post contractual liabilities for the Supply orders not issued in accordance with the provisions brought out above.

2.                 GENERAL CONDITIONS OF CONTRACT:

2.1      Rate Contract and Supply Orders placed against the Rate Contract shall be governed by the General Conditions of the Contract as contained in Form No.DGS&D-68(Revised) as amended upto date.  Special Conditions governing Rate Contract contained in Form No.DGS&D-69 and Instructions to Tenderers quoting against Tender Enquiries issued by the  DGS&D contained in Form No.DGS&D-229; and also the conditions set out herein, unless otherwise stated in Special Conditions of Contract contained in “SCHEDULE –B”.  The rate contract and the supply orders shall be issued for and on behalf of Purchasers as indicated below:

i)        President of India

ii)                 Governor(s) of State(s) as mentioned in the    Constitution of India

iii)               Heads of Union Territories

iv)               Officers of Public Sector Undertakings/Bodies & Corporations.

2.2             This Rate Contract will be operated by the Indentors of the Central Government to be called as the Direct Demanding Officers(DDOs) in addition to the Officers of the DGS&D.  There will not be a separate list of DDOs specifying particular Ministry/Department or an Indentor of the Central Government as a DDO for operating DGS&D Rate Contracts.  It would  suffice if the Supply Order placed by any Central Government Ministry/Department or the Office of the Central Government contain an undertaking to the effect that the authority placing the Supply Order is a Central Government Department/office.

2.3                The Indenting Officers who are not authorised to operate the Rate Contract may place Indents in the prescribed Form to one of the following offices:

(a)              Directorate General of Supplies & Disposals

          “Jeevan Tara” Building, 5, Sansad Marg, New Delhi- 110 001.

b)      Office of Deputy Director General of Supplies & Disposals, New CGO Complex, New Marine Lines, Mumbai – 400 020.

c)   Office of Deputy Director General of Supplies & Disposals, 6, Esplanade East, Calcutta – 700 069.

d)                Office of Deputy Director General of Supplies & Disposals, Shastri Bhavan, 35 Haddows Road, Chennai-600006.

2.4     DDO should preferably act on the copies of Rate Contracts obtained from DGS&D only.  If under special circumstances they have to act on copies of R/C obtained from the firms they should act on only  such copies which are certified by an officer not below the level of G.M of the firm that the copies provided are complete, along with all amendments since issued without deleting or altering any provisions of the Rate Contract and also subject to the condition that the same officer signs each page of the copy of the Rate Contract.  However, in such cases, DGS&D will not be responsible for any acts of omission or commission by the firms.

3. PREPARATION OF SUPPLY ORDERS

3.1                  Placement of any Indent or the Supply Order is with a clear understanding that the expenditure involved in procuring the stores (including cost of stores, duties and taxes, freight, Departmental charges and other incidentals) has received the sanction of the competent Financial Authority and that funds are available under the proper Head of Accounts in the year in which the total cost will be adjusted.

3.1.1   The  Supply Order placed by the DDOs in DGS&D Form No. 131 may also include an indication with regard to the availability of funds and also carry the following financial certificate:-

Financial Certificate

          I Certify that:-

a)            We are a Central Government Department drawing   funds from the Consolidated  Fund of India.

b)  The expenditure involved for this purpose has received the   sanction of the competent Financial Authority.

c)  The Funds are available under the proper head in the sanctioned  Budget allotment for the year ……… and ;

d)  I have been fully authorised by the Department to sign  the Supply Orders and incur the liability in respect of the stores being ordered.

NAME OF THE DIRECT

DEMANDING OFFICER

DESIGNATION

OFFICE/DEPARTMENT

DATE

3.1.2      Placement of indents by the Departments other than the Central Government Departments will be with pre-deposit of requisite funds as per the following guidelines, by a Demand Draft or crossed cheque drawn on the Reserve Bank of India/State Bank of India duly marked “On Government Account Only”, in favour of the Chief Controller of Accounts, Department of Supply, New Delhi.

(i)                In the case of ad hoc indents the indentor should provide along with the indents funds equal to the cost of Stores (based on indentors estimates) plus sales tax plus excise duty and additional excise duty plus 1% departmental charges plus 5% of the basic estimated price to cover freight and other incidentals.

(ii)              In case of rate contract on FOR destination basis where the prices are fixed (without any price variation) the indentor should provide along with the indents, funds equal to basic price indicated in the RC plus sales tax, excise duty, additional excise duty, plus 1% departmental charges.  However, where prices are FOR Station of Despatch, besides the aforesaid funds, additional funds to the extent of 5% of basic price would also be provided.

(iii)            In case of the indents where estimate is based on the rate contract with provision for price variation, the indentor should provide along with the indents, funds as per (ii) above plus10% of the basic price.

During the process of coverage if it were found that funds already provided as above are inadequate for any reason, additional funds would be called before actual coverage.

NOTE:        Unutilised balance of deposits must be claimed by parties by an application direct to the Chief Controller of Accounts. Separate application should be submitted for each case.  Unclaimed deposits will lapse to Government, refund of which will be possible only under Rules governing refund of such Lapsed Deposits.

3.2                   Supply Order(s) against the Rate Contract should be prepared in the Standard Form as given in “Annexure-I”.  All particulars mentioned in the Form should be carefully typed or filled in so as to avoid any ambiguous interpretation.  Particular care should be taken to mention quantity and total cost both in figures   and     in words    so    that        there is no possibility of interpolation.  Complete name and full Postal Address of the Indentor, Consignee and the Accounts Officer and the Complete Head of Accounts must be indicated in the appropriate column of the Supply Order.  Order should be expressed in the same unit as has been given in the Contract.

3.3                   Supply Orders, where all the columns have not been filled in or which are incomplete in any respect will not be acceptable to the Paying Authority and such Supply Orders are liable to be returned by the Paying Authority under intimation to this Office and Supplier.

3.4    DDOs are requested to place supply orders for their requirements on phased delivery basis to enable the Contractor to supply stores in time.  However,  attention is also invited to Para-12 of the Schedule “A” which provides slab discount.  The DDOs are requested to avail this discount to the full extent.

3.5     The DDOs who are authorised to operate RCs may sign the Supply Orders placed by them and communications relating thereto with their own designation.  If subordinate officer (who must invariably be a Gazetted Officer) is allowed to sign the supply order in exceptional cases, his name and designation together with that of the competent authority (DDO) for whom he is signing should be clearly stated in such cases.  The name of the Officer signing the supply order should be indicated in block letters.

3.6      When the supply orders make a reference to schedule, enclosures for description of stores, item No. of the Contract, total quantity and rates etc. the supply orders as well as the enclosures stitched thereto must be signed by the Officer placing the Supply Order.

3.7       Copies of Supply Orders should be endorsed to following :

i)        Paying Authority                       - 1 copy

ii)       Quality Assurance Officer         - 2 copies

iii)      Consignee/Interim Consignee    - 3 copies

iv)      The concerned Purchase Dte.    - 1 copy

The copies of supply order(s) being sent to the firm, Paying Authority and Quality Assurance Officer must be signed in ink and should be sent by Registered Post A.D.  The following Certificate must be recorded on each Supply Order sent to the Contractor :

“Certified that a copy of the Supply Order has been despatched under endorsement No.(s) ……… dated ………. to the …….. (here fill in the Name and designation of the Paying Authority) _________ and _____________ to the ………………… (here fill in the Name and designation of the Quality Assurance Officer).”

The correct designation and complete postal address of the Paying Authorities and Quality Assurance Officers are given in “Annexure-II”.

3.8      The DDOs should provide a definite date of delivery by which supplies are required.  The DDOs should not stipulate vague terms of delivery.  Attention is also drawn to clause-10 of Schedule ‘A’ – Delivery period.  21 days grace period would also be applicable on original delivery dates against supply orders with agreed and binding delivery dates unless specifically made inoperative.

3.9     The DDO should indicate against column “Date of Delivery” of S.O the remarks “the delivery date shown has been agreed to by the Contractor under his letter No…………. …………………………..dated  …………………..” provided the date of delivery has been expressed to by the Contractor in writing.

3.10   The rate contract shall remain in force for the period indicated in the schedule ‘A’.  A  Supply Order may be placed upto the last date of the currency of the rate contract.  Delivery date in the Supply Order need not necessarily fall within the currency of the rate contract but it can go beyond  it depending upon the terms of delivery stipulated in the rate contract or in specifically agreed condition of delivery in respect of particular supply order.  No extension of validity period of the rate contract itself is required when deliveries against outstanding supply orders continue even after expiry of the validity period.  The rate contract will remain alive for purpose of delivery for all the stores ordered during the currency of the rate contract until deliveries have been completed.

4. DESPATCH INSTRUCTIONS AND NOTIFICATION:

4.1     Unless otherwise  specified in the Schedule (s), supplies will be available from the date  the Contract commences.

4.2     It is essential that full and clear instructions regarding despatch are given in the Supply Order.  Any changes in despatch or delivery instructions should be notified to the Contractor under intimation to the Paying Authority and the Inspecting Authority.

4.3     In case of Order placed on F.O.R Station of Despatch basis, the Stores shall be despatched by Goods Train by the most economical route and at most economical Tariff on ”FREIGHT TO PAY” basis.

4.4     In case the Supply Order(s) call for the despatch of Stores on “FREIGHT PRE-PAID” basis, Stores shall be despatched by Goods Train by the most economical route and at most economical Tariff on “FREIGHT PREPAID” basis.  In that event, the Freight will be reimbursed by the Paying Authority at actual against the documentary proof i.e. Photocopy of the Railway Receipt.  The reimbursement of Freight will be made along with the initial 98% advance payment.

4.5     In respect of all despatches in “SMALLS” (less than a wagon load), the Stores shall be despatched by Parcel/Passenger Train by the Most Economical Route and at Most Economical Tariff on “FREIGHT PRE-PAID” basis.  In that event, the Freight will be reimbursed by the Paying Authority at actual against documentary proof i.e. photo copy of the Railway Receipt.  The reimbursement of Freight will be made along with the initial 98% advance payment. 

4.6     In case the Supply Order calls for the despatch of stores by road, the despatches may be made by road.  However, in such cases, the 98% advance payment will be made against the Provisional Receipt issued by the Consignee on advance payment copy of the Inspection Note and the Freight will be reimbursed at actual or the Railway Tariff by goods/parcel/passenger trains, whichever is lower.

4.7     In case of Rate Contract providing for prices on F.O.R Destination basis, the Contractor should invariably despatch stores Freight “PRE-PAID “ in all cases and should indicate the same in the Bill.  In cases, where the stores have been sent on ‘Freight to Pay’ basis, the Contractor should deduct the amount of Railway Freight from its 90%/100% Bills.  In such cases, the consignee should also indicate in the Receipt Certificate portion of the Inspection Note the amount recoverable towards Freight.

4.8     MILITARY CREDIT NOTE wherever applicable may be obtained from the Consignee or the Quality Assurance Officer, whichever is convenient, who are authorised to issue them.

4.9     The Contractor should forward the Railway Receipt to the Consignee by Registered Post Acknowledgement Due/Speed Post/Courier immediately after despatch of stores. Should any demurrage be incurred owing to delay on their part in forwarding Railway Receipt, the amount of such charges will be deducted from their Bills.

4.10   Challans, Packing Notes must be submitted to the Consignees sufficiently in advance of the actual arrival of stores at destination failing which the Contractor will be held responsible for any subsequent discrepancy between actual Receipt and the materials detailed in the Challan received later.

5.       ACKNOWLEDGEMENT OF THE SUPPLY ORDER AND DELIVERY.

5.1     The Contractor should accept S.O. from the DDOs against this Contract on the Standard Form, incorporating all the particulars prescribed in the Contract.  The Contractor should examine the supply order(s) immediately on their receipt and bring to the notice of officer placing the supply order, within 7 days of the receipt of supply order, any discrepancy, with regard to the nomenclature, manufacturers part no. of the stores etc. ordered for due rectification.  The letter should be sent by Registered Post A.D.  Meanwhile, supply of items which are clear for acceptance should not be held up and supplies be arranged by the date mutually agreed upon.

5.2             The Contractor at the time of receipt of supply order should verify, that a certificate to the effect, that copies of the supply order has been sent through Registered Post AD to Quality Assurance Officer and the Paying Authority, is recorded by the officer issuing supply order.  If it is not recorded, immediate action should be taken by the Contractor in this regard to avoid delay in payment of bills.

5.3             The Contractor shall verify the SO about the rate of Sales Tax as per the terms of the rate contract.  The contractor may return the supply order if there is no clear indication in them about the rate of sales tax or SO are not accompanied by form C or D whichever is applicable.

5.4             The Contractor shall maintain stocks at the station(s) indicated by him in his tender and shall make deliveries against Supply Orders from such stocks as and when required.  Upon receipt of a Supply Order (S.O.), the Contractor shall, within Seven (7) days, intimate to the S.O. issuing authority, the quantity which can be     supplied from stocks at the station (s) specified in the    S.O. and within the Delivery period stipulated therein and the time required to supply the balance.  Such an acknowledgement may be given in the   Format given below:

This is to acknowledge receipt of your Supply Order No………………………………………………..dated……………..

          The Stores ordered in the Supply Order will be supplied by the Delivery Date(s) as stipulated by you viz …..

[OR]

          The Stores ordered by you cannot be supplied by the Delivery Date (s) as stipulated by you, but supplies can be made as under :

Quantity ……………. by ………………..

(Strike out the Option Not Applicable)

          If the Contractor is unable to supply the entire quantity within the time stipulated in the S.O. and intimate the time within which supplies will be made by the Contractor, the Officer placing the S.O. will notify his acceptance of the Delivery Time offered by the Contractor or negotiate until an agreement is reached between the S.O. issuing Authority and the Contractor.

          If the Contractor fails to give such intimation within Seven (7) days, the Contractor shall be deemed to have agreed to supply the Stores within the Delivery Date stipulated in the Supply Order.

5.5             In all cases, the Delivery Time as deemed to be accepted by the Contractor or agreed upon as aforesaid between him and the Officer placing the S.O. shall be deemed to be essence of the Contract and delivery must be completed not later than such Date.  If in any case, no agreement with respect to the Delivery Time is reached between the Contractor and the Officer who has issued the Supply Order, it shall be lawful for such officer to withdraw the Supply Order and the Contractor shall have no claim in respect of such withdrawal(s).

5.6             Against the ex-stock deliveries, the material shall normally be put on rail (or delivered in case of local supplies) within a fortnight of the date of receipt of the S.O.  In case supplies are required urgently at station(s) other than specified in the Rate Contract, the Contractor shall intimate the S.O. issuing Authority whether extra freight charges, if any, will be to the account

 of the Purchaser or the Contractor.  The Contractor shall await specific instructions from the S.O. issuing Authority before making any supplies.

6.                 PRE-INSPECTION OF STORES BY THE CONTRACTORS:

6.1             The Contractor should satisfy himself that the Stores are in accordance with the terms of the Contract and fully conform to the required specification by carrying out a thorough pre-inspection of each lot of the stores before actually tendering the same for inspection to the Quality Assurance Officer nominated under the terms of contract.  Such precaution on the part of the Contractor minimises the chances of rejection and the consequences thereof.

7.                 PRE-DESPATCH INSPECTION BY QUALITY ASSURANCE OFFICER

7.1             The stores on no account be despatched/delivered without getting the same inspected and issue of Inspection Notes by the Quality Assurance Officer nominated in the Contract.

7.2             On receipt of the Supply Order, the Contractor shall notify to the Quality Assurance Officer, if inspected stocks are available with the request for issue of Inspection Notes to enable the Contractor to despatch the stores.

7.3             The inspection of Stores offered against Supply Order(s) will be entertained only if it is ink-signed and received directly from DDO through registered post.

7.4             Quality Assurance Officer can however undertake inspection on the basis of an attested copy of the supply order provided by the firm, after comparing it with the original ink signed supply order available with the firm.  Quality Assurance Officer would simultaneously write to DDO under registered post with a request to furnish an ink signed copy of the Supply Order.

7.5             The copy of the supply order so provided by the firm, should be attested by a person not below the rank of General Manager of the firm, on each page of supply order, including amendments if any.  The Quality Assurance Officer may also take an undertaking from the firm to the effect that the copy of supply order and amendments, if any so provided, to the Quality Assurance Officer is correct and complete in all respects and that the firm holds themselves responsible for any discrepancies if found subsequently and consequences thereof.

7.6     He may release Inspection Notes after following above procedure if the original copy of the Supply Order is not received from DDO inspite of making reference to him by Registered Post.  The Inspection Notes in such cases would be issued with a note that: “the inspection has been undertaken and Inspection Note is being issued on the request of the supplier and on the basis of an attested copy of  the Supply Order provided by the firm, since the original ink signed copy of the Supply Order has not been received from the DDO despite having asked for it vide letter No…………Dated……. The release of stores under this Inspection Note is therefore subject to verification of the genuineness of the Supply Order.

Contractor shall ensure that sufficient time is given to the Quality Assurance Officer in arranging inspection and testing of the goods keeping in view the delivery date.

The Contractor should ensure that goods accepted by the Quality Assurance Officer  after inspection have been properly and legibly stamped by latter’s Identification Stamp/Seal.

7.7     The Contractor shall allow all reasonable facilities and free access to his works and records to the Quality Assurance Officer. The Contractor shall, at his own expense, afford to the Quality Assurance Officer all reasonable facilities as may be necessary for satisfying himself that the goods are being and/or have been manufactured in accordance with the contract requirements.  For the aforesaid purpose he may require the supplier to make arrangements for inspection and/or testing of the supplies or any part thereof or any material at his premises or at any other place specified by the Quality Assurance Officer.  The samples, all materials, tools, labour, testing equipment and assistance which the Quality Assurance Officer may demand of him to verify the conformity of the goods to the quality requirement etc. will be provided without any extra charge.

7.8     The result of the Inspection will be notified to the supplier by the Quality Assurance Officer.

8.       EXTENSION OF DELIVERY PERIOD

8.1     As soon as it becomes apparent to the Contractor that the delivery date(s) stipulated in the Supply Order(s) cannot be adhered to, Contractor

should apply for extension to the officer(s) who placed the Supply Order(s) giving reasons for the delay and also the date upto which extension is required.  The Officer placing the Supply Order will consider such request and if he has no objection, extend the delivery date suitably in the Format given in Annexure III, subject to the following conditions:

a)                 That an amount equal to the liquidated damage for delay in the supply of the stores after the expiry of contract delivery period, shall be recovered from the contractor as mentioned in Clause 14(7)(i) of the General Conditions of the Contract for the extended period, notwithstanding the grant of this extension.

b)                That no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, Sales Tax or on account of any Tax or Duty leviable in respect of stores specified in the said Supply Order which takes place after the agreed delivery date of …………….Shall be admissible on such of the said stores as are delivered after the said date.

c)                 That notwithstanding any stipulation in the Contract for increase in price or any other ground no such increase which takes place after delivery date of ……..shall be admissible on such of the said stores as are delivered after the said date.

d)                But nevertheless, the Purchaser shall be entitled to the benefit of any decrease in price on account of reduction in or remission of Customs Duty, Excise Duty, Sales Tax or on account of any other Tax or Duty on any other ground including Market Rate stipulated in the Price Variation Clause which takes place after the expiry of the agreed delivery date of ……………………..

9.       LIQUIDATED DAMAGES

9.1                   If the Contractor fails to deliver any or all of the goods within the time period(s) specified in the Supply Order and agreed by him in accordance with Clause 5.4, the Purchaser will be entitled to the remedies detailed in the Clause 14 of the Condition of the Contract Form DGS&D-68 (Revised) i.e. Liquidated Damage for delay in supply, cancellation and repurchase at the expenses of the Supplier.

9.2                   In cases where Direct Demanding Officers have placed a Supply Order on the firm stipulating an unilateral delivery date and supplies do not materialise within a reasonable time, the Direct Demanding Officer has the right to give the contractor a notice fixing reasonable time for delivery of the goods.  The Notice should state that the delivery within the time fixed shall be the essence of the Contract.  The Notice should be issued by the DDO in the standard form (Annexure III) and can operate only if there is an acceptance absolutely and unqualified to all the terms and conditions of the contract. Such an acceptance can be evidenced either by correspondence or by conduct, that is by making supplies  without raising any objections.  Mere Postal Acknowledgement of the letter of extension will not serve this purpose.  In case Notice Period is not agreed by the Contractor either by correspondence or by conduct, the delivery will not be binding and the Supply Order in that case will have to be cancelled without any financial repercussions.

10.     TERMINATION FOR DEFAULT:

10.1   If the supplies against the orders placed by DDOs are not made by the R/C holders within the delivery date stipulated  in the Supply Order, the DDOs shall have the right to withdraw the Supply Order after the expiry of the date of delivery stipulated in the Supply Order.

10.2        In case of such withdrawal of the Supply Order by the DDOs, the same will be reported to DGS&D.  The failure to make supplies in such a case will be considered by DGS&D as the failure/non-performance on the part of the supplier and will be taken into consideration in performance assessment before their case is considered for award of the next Rate Contract.

11.  PACKING AND MARKING

11.1 Unless specified otherwise, consignment should be securely and properly packed as per Clause 12 of the DGS&D-68 (Revised), and every precaution taken to avoid loss or damage during transit.  Each package should be clearly marked to indicate Description and Quantity of stores, Name and Address of the Consignee, Gross Weight of the Package, S.O No. and Date and the Name of the Contractor as provided in the General Conditions of the Contract.[Form No. DGS&D-68 (Revised)].

12.             SYSTEM OF PAYMENT- PREPARATION AND SUBMISSION OF BILLS :

12.1 Bills should be prepared on the standard forms (DGS&D-135) in accordance with the instructions contained in the Pamphlet bearing symbol No. DGS&D-204, a saleable publication containing instructions to Contractors for preparation and submission of bills.

12.2   All bills in respect of the Supply Orders placed for supply to any of the DDOs will be paid by the Paying Authority mentioned in Clause 18 of SCHEDULE A.  In no case should any payment be made by the DDO direct to the Supplier.

12.3   Payment will be made by the Accounts Officer concerned on the basis of original ink signed Supply Order received from DDO and the authenticated copy of rate contract/amendment to the Rate Contract thereof received by them.

12.4    On no account payment will be made on the basis of attested copy of Supply Orders.  When Contractors submit their bills to the Accounts Officer concerned, they should give the information on the bill itself that a copy of the Supply Order has been sent by the DDO to them quoting postal registration number and date under which the Supply Order was sent as indicated on the firm’s copy of the Supply Order by the officer who has placed the Supply Order.  The intention is that the bills regarding Supply Order placed by Direct Demanding Officers should accompany this information so that the Accounts Officer should be able to connect and locate the Supply Orders in his office.

12.5 Payment will be made to the Contractor on submission of Bills in accordance with the Procedure laid down in Clause 19 of DGS&D-68 (Revised); Clause 6 of the DGS&D-69 read with DGS&D-229 as amended upto date.  The broad provisions are reproduced as under :

(i)                98% of the price of the Stores of each consignment thereof shall be paid on the proof of despatch to the Consignee or delivery to the Local Consignee or delivery to an interim consignee, if any, and on production of valid Inspection Note.  Balance 2% shall be paid on receipt of Stores by the Consignee in good condition.

The Contractor shall furnish the following certificate along with each bill in respect of supplies made under this Rate Contract:

“I/We have personally examined and verified, and do hereby certify that the goods in respect of which the payment is being claimed have been actually despatched by me/us under R.R No…………………dated ………………duly drawn in favour of the consignee which is genuine and mentioned in the bill and I/we hold myself/ourselves personally responsible for the correctness of this statement.

I/We further certify that the above mentioned R.R No………..dated…………….has been forwarded to the consignee mentioned in the Contract under REGISTERED POST A.D on ………………..

I/We confirm that the bill has been preferred correctly as per the price authorised in the Rate Contract.

The Certificate should be signed by an authorised person of the Contractor and he should be the same as signing the bill.  His designation and the name of the Contractor on whose behalf he has signed the bill should also be indicated below his dated signature.

ii) Provided, however, in cases where the Contractor is not in a position to submit bills for balance 2% for want of the receipted copies of Inspection Notes from the consignee and the consignee has not complained about the non-receipt of shortage or damage or defects in the supplies made, the balance 2% payment may be made by the Paying Authority without Consignee’s receipt  certificate after 90 days from  the date of Advance Payment subject to the following conditions.

a)       The Contractor will make good any defect or deficiency that the consignee may report within 6 months from the date of despatch of stores.

b)                Delay in supplies, if any,  has been regularised.

c)                 The Contract prices, where it is subject to variation, has been finalised.

d)                The Contractor furnishes the following undertakings.

I/We …………………………..certify that I/We have not received back the Inspection Note duly receipted by the Consignee nor have I/we been intimated by the Consignee of non-receipt, shortage, damage or defects in the stores supplied.

I/We …………………agree to make good any defect or deficiency that the Consignee may report within three months from the date of their final balance payment.

I/We…………………. further agree that all rights of Purchaser under the general and  Special Conditions of the Contract shall remain entirely unaffected thereby.

NOTE:  The Contractor shall have to furnish with the bills, a photocopy of the Railway Receipt as proof of despatch of material duly attested by the person signing the bill.  In case where facility of furnishing of photo copy is not available, the Contractor shall furnish a True Copy of the Railway Receipt duly attested by a Gazetted Officer, M.P, MLA, a Notary Public or a Magistrate.  Bills not supported with the Attested Photo copy or the True Copy of the Railway Receipt will not be admitted for payment.

13. EXCISE DUTY:

13.1 Excise Duty wherever to be paid extra in terms of Clause 8 of “SCHEDULE A” will be paid to the Contractor at actual against a documentary evidence i.e. a Photo copy of the Invoice duly attested and signed by the Contractor’s Managing Director or his Authorised Signatory for the purpose.

13.2   The Contractor while submitting the Bills, will also furnish the following Certificates on the Bill itself.

i)                   Certified that the Excise Duty charged on this Bill is not more than what is payable under the provision of the relevant Act or the Rules made thereunder.

ii)                 Certified that the amount of  Rs……………claimed as Excise Duty in this bill is in accordance with the provisions of the Rules in all respects and that the same has been paid to the Excise Authorities in respect of the Stores covered by this Bill.

13.3 The Contractor shall submit to the Paying Authority, the following Certificates:

a)                 Certificate with each Bill to the effect that no refund has been obtained in respect of reimbursement of Excise Duty made to the Contractor during three(3) months immediately preceding the date covered by the relevant Bill.

b)                Contractor’s Statutory Auditor’s Certificate as to whether any refunds have been obtained or applied for by the Firm or not in the preceding  financial year, after the Annual Audit of their Accounts also indicating details of such refunds/application, if any.  This Certificate should contain reference to all Ad-hoc A/Ts, Rate Contracts held by the Contractor.

c)                 A Certificate along with the Final payment Bills to the effect whether or not they have any pending appeals/protest for refund or partial refund of  Excise Duties already reimbursed to the Contractor by the Government pending with the Excise Authorities and, if so, the nature of the amount involved and the position of such appeals.  This Certificate should be signed by Contractor’s Managing Director/Manager/Accountant.

d)                An undertaking to the effect that in case it is detected by the Government that any refund from Excise Duty Authorities obtained by the Contractor after obtaining reimbursement from the Paying Authority and if the same is not refunded by the contractor to the Paying Authority, giving details and particulars of transactions, the Paying Authority will have full authority to recover such amount from the Contractor’s outstanding bills against a particular contract or any other pending Government Contract and no dispute on this account would be raised by the Contractor.

14. SALES TAX

14.1   Whenever supplies are made to a Government Department or to any other Department which does not fall under the definition of Government i.e. the local bodies etc but is a registered dealer under the respective Sales Tax Act, the Contractor should intimate whether the purchaser being a Government Department or a registered dealer is entitled for any concessional rate and if so under which notification or category they are allowed to such concessions for their prompt settlement of their Sales Tax claim.

                        14.2   Wherever  the sale is to a registered dealer or Government Department or to such consignees who are entitled to avail of the benefit of the concessional rate of tax or exemption from payment of Sales tax under the Central Sales Tax Act or the State Sales Tax Act or the rules made there under, the Contractor  must obtain the relevant Certificate/declaration in proper time and in case of such declaration/certificate,  the matter should be immediately brought to the notice of the S.O issuing authority under advice to the Purchase Officer of DGS&D. 

14.3        In Supply Orders or Amendments  thereto allowing Sales tax, State or Central, the Contractor shall furnish the following certificate under the  dated signatures on their relevant Bill for Sales Tax:

“Certified that the goods on which Sales Tax has been charged have not been exempted under the Central Sales Tax Act or State Sales Tax Act or the rules made thereunder and the charges on account of Sales Tax on these goods are correct under the provisions of that Act or the Rules made there under.  Certified further that we (or our branch)  or

(Agent) …………. (Address) ……………… are registered as dealers in the State of …………. under Registration No. …….. for the purpose of Sales Tax.”

14.4        The Contractor should also give a Certificate that the assessment for the period under which the Supply Order or the supplies made to the Government Department or Consignee has been made or not.  In case the Assessment has been done, the Contractor should furnish a copy of the Assessment Order in which the supplies or the supply order have been covered to determine the exact rate of sales tax at which they have been assessed by the sales tax authorities.

14.5  The Contractor should also make all their efforts to approach the last legal forum whenever there is dispute regarding applicability of sales tax in the category of the schedule under which they fall or whether a contract or contract for sale or the category or schedule under which they fall the contractor should ensure that the assessment made by the first authority i.e. the ASTO or STO is not final and their orders are challenged in the next higher judicial forum..

15.     FALL CLAUSE:

15.1  The prices charged for the stores supplied under the Contract by the Contractor shall in no event exceed the lowest price at which the Contractor sells the Stores or offer to sell stores of identical description to any person(s)/organisation(s) including the Purchaser or any Department of the Central Government or any Department of a State Government or any statutory undertaking of the Central or a State Government, as the case may be, during the period till performance of all Supply Orders placed during the currency of Rate Contract is completed.

15.2   If at any time during the said period, the Contractor reduces the Sale price, sells or offers to sell such stores to any person(s)/organisation(s) including the Purchaser or any Statutory Undertaking of the Central or a State Government, as the case may be, at a price lower than the price chargeable under this Contract, he shall forthwith notify such reduction or Sale or offer of Sale to the Director General of Supplies and Disposals and the price payable under the Contract for the stores supplied after the date of coming into force of such reduction or sale or offer of sale stand correspondingly reduced.  The above stipulation will, however, not apply to :

(a)              Export/deemed Export by the Contractor

(b)             Sale of Goods as Original Equipment prices lower than the price charged for normal replacement.

(c)              Sale of goods, such as drugs, which have expiry date.

(d)             Sale of goods at lower price on or after the date of completion of sale/placement of order of goods by the authority concerned, under the existing or previous Rate Contracts as also under any previous contracts entered into with the Central or the State Government Departments including new undertakings(excluding joint sector companies and or private parties) and bodies.

15.3  The Contractor shall furnish the following certificate to the Paying Authority along with each bill for payment for supplies made against the Rate Contract.

“I/We certify that there has been no reduction in sale price of the Stores of Description identical to the Stores supplied to the Government under the contract herein and such Stores have not been offered/sold by me/us to any person(s)/organisation(s) including the purchaser or any Department of Central Government or any Department of a State Government or any statutory Undertaking of the Central or State Government as the case may be upto the date of the bill/the date of completion of supplies against all supply orders placed  during the currency of the R/C at a price lower than the price charged to the Government under the Contract except for quantity of Stores categorised under sub clause (a), (b) and (c) of Sub-para (ii) above details of which are as follows:-

NOTE:  The Contractor will also inform the Paying Authority and the DGS&D as soon as the supplies against all the Supply Orders placed against the Rate Contract are completed.

16.   SALE OF MATERIAL BRANDED WITH GOVERNMENT MARK:

16.1        Materials which are branded with Government mark, it would be the condition that such materials will not be sold to the public; such a condition being applicable also in respect of rejected stores. Breach of this condition will render the Contractor liable to suspension of business with the Department.

17.     TRANSIT INSURANCE

17.1   The Purchaser will not pay separately for Transit Insurance and the Supplier will be responsible till the entire stores contracted for arrive in good condition at destination.  The transit risk in this respect may be covered by the Contractor by getting the stores duly insured, if he so desires. The Insurance cover shall be obtained by the Contractor in his own name and not in the name of the Consignee.  The Consignee will as soon as possible but not later than 45 days from the date of arrival of stores at destination notify the Contractor of any loss or damage to the stores that may have occurred during transit.

17.2        If the Contractor has not agreed to above standard clause the advance payment for the supplies shall be made against clear Railway Receipt only. If the Consignment have been despatched under R/R on “Said to Contain” basis, payment shall be made only with Consignee’s Receipt Certificate.

18.                                                                         18. GUARANTEE/WARRANTY:

18.1   The Contractor shall certify that the stores supplied to the Purchaser under any Supply Order placed against this Contract are of best quality and workmanship and new in all respects and are strictly in accordance with the specifications and particulars mentioned in “SCHEDULE A” to the Rate Contract.

18.2   The Contractor shall guarantee that the stores supplied would continue to be of the same quality and particulars for a period of 12 months from the date of receipt of stores by the consignee or 15 months from the date of despatch, whichever is earlier.  In respect of Indigenous Plant & Machinery, the period would be 12 months from the date of Commissioning or 18 months from the date of despatch whichever is earlier.  In case of imported machinery, the period would be 12 months and 21 months respectively.  The Contractor further guarantees that, notwithstanding the fact that the Quality Assurance Officer may have inspected and/or approved the said Stores, if during the aforesaid period of 12/15/18/21 months, the said Stores be discovered not to conform to the description and quality aforesaid not giving satisfactory performance or have deteriorated , and the decision of the Purchaser in that behalf shall be final and binding on the Contractor and the Purchaser shall be entitled to call upon the Contractor to rectify and/or replace the Stores or such portion thereof as is found to be defective by the Purchaser within a reasonable period or such specified period as may be allowed by the Purchaser in his discretion on application made thereof by the Contractor, and in such an event, the above period shall apply to the stores rectified and/or replaced from the date of rectification and/or replacement mentioned in warranty thereof. Otherwise the Contractor shall pay to the Purchaser such compensations that may arise by reasons of the warranty therein contained.

     18.3   In case of Plant and Machinery or in case of Stores, which may require Spares, the Contractor shall guarantee and they will supply Spare Parts, if and when required on agreed basis for an agreed price.  The agreed basis could be an including but without any limitation an agreed discount on the published catalogue of an agreed percentage of profit on the landed cost.

18.4   The Contractor shall furnish the Warranty to the effect that before going out of production for the Spare Parts, they will give adequate notice to the Purchaser of the Equipment so that the latter may undertake the balance of lifetime requirements.

18.5   The Contractor shall furnish the Warranty to the effect that they will furnish the blue prints of drawings of the Spares, if and when required in connection with the main equipment.

19.     FORCE MAJEURE CLAUSE:

19.1        If at any time during the continuance of this Contract, the performance in whole or in part by either party of any obligation under this contract shall be prevented or delayed by the reasons of any war, hostility, acts of the public enemy, epidemics, civil commotion, sabotage, fires, floods, explosion, quarantine restrictions, strikes, lockouts or act of God  (hereinafter referred to as such acts) provided notice of happening of such event is given by one party to the other within 21 days from the date of occurrence thereof, neither party shall be by reasons of such event, be entitled to terminate this contract nor shall either party  have any claim for damages against the other in respect of such non-performance or the delay in performance, and deliveries under the contract shall be resumed as soon as practicable after such event has come to an end or ceased to exist, and the decision of  the Secretary as to whether the deliveries have been so resumed or not, shall be final and conclusive, PROVIDED FURTHER that if the performance in whole or part of any obligation under this contract is prevented or delayed by reason of any such event for a period exceeding 60 days, either party may at its option terminate the contract provided also that the purchaser shall be at liberty to take over from the Contractor at a price to be fixed by Secretary, which shall be final, all unused, undamaged and accepted material, bought out components and stores in course of manufacture in the possession of the contractor at the time of such termination or such portion thereof as the Purchaser may deem fit excepting such materials, bought out components and stores as the contractor may with the concurrence of the purchaser elect to retain.

20.   PURCHASER’S RIGHT TO SHORTCLOSE THE  RATE    CONTRACT:

20.1         Since the rate contract is a standing offer and is merely a document embodying various terms of the standing offer made by the Contractor, the purchaser i.e. DGS&D can legally cancel the Rate Contract at any time during the currency of the contract giving a reasonable opportunity to the contractor to represent against such cancellation.  The revocation/cancellation of the Rate Contract shall take effect immediately, thereafter.  Any order placed by Direct Demanding Officer after the date of cancellation of the Rate Contract should not be taken up by the contractor for execution.  The purchaser i.e. DGS&D may, at  its option negotiate with the Contractor so as to bring the R/C prices in line with the Market prices, whenever market fluctuation affects prices abnormally.  If the negotiation fails, then the Rate Contract will be foreclosed and fresh Rate Contract will be concluded separately.

21. RECEIPT OF STORES & NOTIFICATION OF DAMAGE AND LOSS,  IF ANY

21.1        The consignee is responsible for verifying at the time of taking delivery from the Railway Authorities that the stores have been received intact without loss or damages.  When the stores are despatched in full wagon loads, consignee should verify that the seals on wagons are intact.

21.2   If there are any discrepancies such as stores having been damaged, found deficient or below standard, the consignee, after taking into account

 special terms and conditions, if any, that might have been stipulated in the Rate Contract regarding responsibility for breakage etc, in transit, should make the endorsement in the space provided in the Receipt Form against ‘Details of recoveries proposed by the consignees’ together with amounts to be recovered from the Contractor.  Brief reasons as to why the amount is to be recovered from the Contractor such as ‘bad packing’ etc should be stated as guide to the Paying Authority regarding the action to be taken.

21.3  If  there is evidence of loss or damage, the consignee should arrange to secure necessary certificates from the appropriate railway officials before taking delivery.  The loss or damage should in every case be promptly reported to the Contractor, Supply Officer who placed order, as well as the concerned Controller of Accounts responsible for payment for the stores as otherwise the consignee will be deemed to have accepted the stores.  In any event, the consignee should not, give Receipt Certificate to the Contractor before checking and verifying the stores. 

                             21.4   In case the Consignee observes some shortage/damage they should ensure to take Open Delivery invariably and lodge the claim with the Carriers immediately under intimation to the Contractor, DGS&D and the Paying Authority.  Failure to act properly may result in losing their claim of shortage/damage, if any observed at a later date.

21.5   The Consignee should invariably incorporate a Certificate on the Receipt Certificates on the following lines:-

“Consignment was despatched under……… +………”

+ indicate any one of the following through which consignment was despatched/received.

a.            Clear Railway Receipt

b.           Said to Contain Railway Receipt

c.           At Railway/Owner’s risk.

21.6 Any amount paid by the Consignee due to demurrage charges, under charges etc on behalf of the Contractor should be immediately reported to them, under intimation to the Paying Authority to enable him to retrench the amount from any of the bills due to the contractor.

21.7   The Consignee should ensure that any loss and or damage to Stores that may have occurred during Transit should be notified to the Contractor

 within 45 days of the date of arrival of the Stores at destination.  Failure to do so would render Purchaser’s claim for such loss/damage being rejected by the Contractor.  In case entire consignment is not received within 30 days of its despatch, the Consignee should immediately take up with Railways and lodge claim with them.  Simultaneously, the consignee should advise the Contractor asking them to take up the matter with the Railways for follow-up action.  In all such cases, Paying Authority may be advised suitably so as to recover the cost of such affected consignment  from the Contractor’s bills in terms of General Conditions of Contract.

21.8   Where stores are rejected on arrival on destination, these will be re-booked  to the Contractor, if he so desires, ‘Freight to Pay’ at Public Tariff Rates.

21.9   Where the rejected stores are returned as above, and goods are not required to be replaced, the freight paid by the Consignees, if any, on the original consignment will be recovered from the Contractor either in cash or from their bills. In case original Consignment was booked at concessional rate, the charges actually incurred by the consignee  only will be recovered.  If the Contractor does not want the consignment to be re-booked, and the original consignment was booked at concessional tariff, the contractor shall be liable to pay the difference between the Public Tariff and the Concessional Tariff.

21.10           The Consignee should also indicate ‘Replacement required’, ‘Replacement not required’ or ‘Can rectify locally total cost Rs. ……’.  Paying Authority shall take necessary action, in consultation with the Purchase Officer, to retrench the amount from any sum due or which may become due to the Contractor and for this purpose the Paying Authority will use Retrenchment Slip, copies of which will be sent to the Contractor, Purchase Officer, Consignee and Quality Assurance Officer.

21.11 The Consignee then will ascertain from the Contractor whether he is going to:

i)                   make good the deficiency in Stores;

ii)                 carry out rectification, or;

iii)               agree to the rectification being carried out by the Consignee at the Contractor’s expense.

 
21.12           Regarding (i) above in the event of replacement, after rejections of stores, the Consignee should address a letter to the Rate Contract holder for replacement giving details of stores rejected and endorse copies to the Pay & Accounts Officer, Department of Supply and the Inspector concerned.  On receipt of the copy of the letter, the Inspecting Officer will carry out inspection of stores tendered by the Rate Contract holding firm and issue inspection notes.  The Inspecting Officer must, however, mention in the Inspection Note that the stores are supplied in replacement of rejection made against his Inspection Note No….. dated ….. as per letter No. …… dated ……….. from Consignee.  The Consignee will, also as usual, return to the ‘Rate Contract holding firm’ the Inspection Notes after making necessary endorsement and completing the Receipt Certificates therein and the normal procedure for final 100% payments will be followed in such cases.

21.13 Regarding (ii) the same procedure as in the case of (i) above will apply except where rectifications are carried out at the Consignee’s premises.  In the latter event, if it is not possible for the Rate Contract holder to have the stores re-inspected by the Inspector named in the Contract, the Consignees may inspect the stores and issue the Inspection Note endorsing it with the Retrenchment Slip No. and date for cross reference.  He will complete Inspection Certificate and Receipt Certificate and distribute copies of the Inspection Note in the normal manner.  Regarding (iii) the Rate Contract holder will be debited with the actual cost of such rectifications. Issue of further Inspection Note would not be necessary.

21.14  In case Consignee proposes and communicates to the Paying Authority any recovery due to shortage/damage/rejection etc. copies may be endorsed to the concerned Purchase Officer also so that he is also aware of such recoveries and the performance of the Contractor.

21.15   If the goods are required to be replaced, such consignment in replacement will be booked ‘Freight Paid’ at Public Tariff Rate irrespective of Tariff paid for the original consignment.  No recoveries in respect of freight on the original consignment will be made from the contractor.  In case the replacement supplies are booked at concessional tariff, recovery of freight in respect of such irregular booking will be made from the Contractor at Public Tariff Rate either in cash or by deduction from his bills and the fact should be reported to DGS&D so that suitable action can be taken against the Contractor.

21.16           Recoveries of freight charges be reported to the Paying Authority as early as possible together with the details of the Supply Order to enable him to identify the transaction.

21.17       Consignees are particularly requested to complete the receipt portion of Copy No.1 (Advance Payment Copy) of the Inspection Note in case of provisional receipt of Stores delivered locally; Copy No.1, Copy No.2 (balance payment copy) and Copy No.5 (Accounts Office Copy) of Inspection Note in case of 100% payment, and Copy Nos. 2 & 5 in case of balance 2% payment, as the case may be and return the same to the Contractor as expeditiously as possible after the receipt of Stores.  Delay in issue of these Receipt Certificates delays the payment to the Contractor and this may ultimately lead to increased cost of stores to the Purchaser, and also invite uncalled for criticism from trade.  COSIGNEES SHOULD,  THEREFORE, AVOID ANY DELAY IN FURNISHING THE RECEIPT CERTIFICATES TO THE CONTRACTORS.

21.18 Immediately after the completion of Supply Order, the consignee should furnish the following information to the Purchase Officer.

a)     Supply Order No.& Date read with R/C No. and Date

b)    Quantity and Value of Supply Order

c)     Date of despatch by the Contractor along with R.R.No. and date.

d)    Date of receipt of Stores at destination

e)     Any remarks

22.           SUBMISSION OF QUARTERLY DRAWAL REPORT:

22.1             The offer of the firms for the next RC  will be considered only if their performance against the current and preceding RCs, if held by them, is satisfactory and they are otherwise eligible.  For this purpose, the purchaser expect that a firm should have supplied minimum 85%/95%/100% of the stores due for supply against the current R/C and preceding two years R/C respectively on or before the cut off date as indicated in the tender enquiry.

22.2            R/C Holder not obtaining any Supply Order against the current R/C prior to the period indicated above and also against immediate previous Rate Contract will be considered to have a NIL performance and will not be eligible for award of next R/C.

22.3    The Contractor shall submit a statement of Orders received and executed against the Rate Contract by the 10^th of each month  in the proforma attached (Annexure-IV) to the concerned Director of Purchase with copy to Director(MIS), DGS&D, New Delhi-110 001.

23.    RESOLUTION OF DISPUTES:

23.1           In the event of any question, dispute or difference arising under these conditions or any Special Conditions of Contract, or in connection with this Contract (except as to any matters the decision of which is specially provided for by these or the special conditions) the same shall be referred to the sole arbitration of an officer in the Ministry of Law, appointed to be the arbitrator by the Directorate General of Supplies & Disposals as per Clause 24 of Conditions of Contract Form DGS&D 68 (Revised).

23.2           Where the Sole Arbitrator Clause has not been agreed to, all disputes or differences arising under or out of or in connection with the Contract, shall be subject to the exclusive jurisdiction of the Court within the local limits of whose jurisdiction, the place from where Contract was issued is situated.

24.     REVOCATION/CANCELLATION OF RATE CONTRACT

          Since  the Rate Contract is a standing offer and is merely a document embodying various terms of the standing offer made by the Contractor for acceptance by the Purchaser, either party namely, the R/C holder/the Purchaser can legally revoke/cancel the Rate Contract at any time during the currency of the Rate Contract giving a notice of 45 days.  The revocation of the Rate Contract on the part of the R/C holder shall take effect 45 days from the date of the communication of revocation is received by the Purchaser.  The cancellation of the Rate Contract by the Purchaser shall take effect 45 days from the date of issue of letter notifying the short-closure.

          The notice-cum-cancellation of Rate Contract letter to be issued by the Purchaser is given in Annexure-V and the R/C holder can revoke the Rate Contract by making an application in the Form given in Annexure-VI.

DGS&D-131

SUPPLY ORDER AGAINST DIRECTOR GENERAL OF SUPPLIES & DISPOSALS RATE/CONTRACT

            (The Directorate General of Supplies & Disposals is not authorised to arrange for the purchase of Stores for private parties or for private  …………………………………... use of Government officers).

Office of the  ……………………………………………………………………………….

Station………………………………………………………………………………………

Supply Order No………………………………………………………Dated……………

against  DGS&D Rate Contract.

No…………………………………………………………………….. Dated……………..

            (Period of Rate/Contract …………………………………………)

            This order which is intended for the supply of the stores detailed in the schedule below, in accordance with the  terms and conditions of the Director General of Supplies and Disposals Rate/Contract mentioned above and in the manner specified herein, shall operate to create a specific contract between the Contractor (with whom the Contract referred to and the requisition are placed) of the one part and the *……………………….

of the other part.

* Here enter the name of the Govt. concerned to which the requisitioning officer belongs e.g. President, Governor of …………………………..or…………………… State.

Designation of Indenting Officer                                 To be filled in  when  requisitioning

Indent No……….. dated……….                                 and Indenting Officers are different

(For supplementary schedule see reverse)

Total……………………… Rs………..

Total inclusive price to the nearest* rupee f.o.r. delivered free at ………………..

Date of delivery ………………………..

Authority holding Sealed Particulars ………………………………………………

Designation and address of Inspecting Officer …………………………………….

Designation and full address of the Consignee

…………………………………………………………………………… Railway Station to which goods are to be consigned …………………………………………………………

To be despatched by+ …………….. train           at+…………….. risk.

Freight +……………….. at+………………………. rate+

Designation of the Accounts Officer of the Consignee ……………………………

Head of Account to which the cost is debited………………………………………………                               

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Rly. Material Concession Note ………… is enclosed herewith

The necessary………………………………………………………………………..

Military Credit Note                                         should be obtained in direct communication with ………………………

            Certified that copy of the Supply Order has been despatched under endorsement No.(s) ………………………….. dated………………….. in a registered cover under Postal Registration No…………………………….. dated……………… to the Accounts Officer, Department of Supply ……………... (here fill in the destination) and Director/Deputy Director of Inspection …………. (here fill in the destination).

            Please acknowledge Receipt of this letter and arrange supply of above stores.

To,

Sarvashree,

Signature ……………………….

Designation……………………..

For endorsement and Special Instructions see on REVERSE

22.2.1  The alternatives not applicable should be scored out.

+          Passenger or Goods Train, owner’s or Rly. Risk, freight paid or to pay at public tariff, Rly. Material or Military concession rate should be mentioned.

Copy forwarded for information to the :-

1.                  Indenting Officer

2.                  Consignee

3.                  Inspecting Officer (2 copies)

4.                  A.O.,Department of Supply, New Delhi/Calcutta/ Mumbai/ Chennai.

Note : Copies of the requisitions placed by Direct Demanding Officers are required to be forwarded only to the Inspecting Officer and the A.O., Deptt. of Supply, New Delhi/Calcutta/Mumbai/Chennai Copies need not be sent to the Supply Officers who

                                    Govt. or Non-Govt.

Civil or Defence

Central or State (In the case of Central)

Commercial or Non-commercial

The Indenting Department is *

*The alternatives not applicable should be scored out.

SPECIAL INSTRUCTIONS

1.           On all the letters, Invoices and Bills please quote the Number & Date of this Order, the name of the Indenting Officer, the number and date of Indent and the No. & Date of the Contract mentioned on reverse.

2.         No direct payment should be made to the supplying firm by the Indentor or consignee himself for supplies made against the supply order.

3.         All columns of this Form should be carefully typed or filled in ink and should be complete in all respects before issue.

SUPPLIMENTARY SCHEDULE

(For use in the Accounts Office)

Checked & found correct

Noted on page…………..of payment register.

(Index No…………………….)

Accounts Clerk                                  Accountant                                               G.O

ANNEXURE ‘II’

DIRECTORATE GENERAL OF SUPPLIES & DISPOSALS

Annexure- III

AMENDMENT S No.                                                     REGISTERED POST A.D

To

……………….

………………….

Sub:     Supply Order No…………….Dated ……………for supply of

 ……………………………….Against DGS&D Rate Contract

 No………………Dated……………(Value  Rs………………)

Ref:     Your letter No…………………..dated……………………….

Sir,

            You have failed to deliver the Stores ………..(indicate the quantity of Stores remaining unsupplied) within the Contract Delivery period ………..(delivery period as last extended upto).  In your letter under reply, you have asked for extension/further extension of time for delivery.  In view  of the circumstances stated in your said letter, the time for delivery is extended from ……………….to……………

2.         Please note that an amount equal to the liquidated damages for delay in the supply of the stores after the expiry of the Contract delivery period shall be recovered from you as mentioned in Clause 14(7)(i) of the General Conditions of the Contract (Form  No.DGS&D-68(Revised) for the extended period notwithstanding the grant of this extension.

3.         The above extension of delivery date will also be subject to the following further conditions:-

a)      That no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, Sales Tax or on account of any Tax or Duty leviable in respect of stores specified in the said Supply Order which takes place after the agreed delivery date of **……………shall be admissible on such of the said stores as are delivered after the said date.

b)     That notwithstanding any stipulated conditions in the contract for increase in price on any other ground, no such increase which takes place after the agreed date of ………..*** ……………. shall be admissible on such of the said stores as are delivered after the said date.

c)     But, nevertheless, the Purchaser shall be entitled to the benefit of any increase in price on account of reduction in or remission of Customs Duty, Excise Duty, Sales Tax or on account of any other Tax or Duty or on any other ground including Market Rate stipulated in the Price Variation Clause which takes place after the expiry of the agreed delivery date of ……………*** …………….

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4.         You are requested to note that notwithstanding the extension in Delivery Period (if accepted by you), the time hereby extended for supply of stores shall be deemed to be the essence of Contract and failure on your part to supply the stores by the extended time shall entitle the Purchaser to cancel the contract at your risk and cost without further notice or opportunity.

5.         Please intimate your unconditional acceptance to reach this office within 21 days of the issue of this letter failing which Contract will be cancelled at your risk and expense without any further reference to you.

(***insert here the original delivery date or the last unconditionally extended delivery date)

Yours faithfully

ANNEXURE IV

FORMAT FOR DRAWAL REPORT

Name of the firm……………..Jan – Mar  Report No………..

                                                  Apr – June

Rate Contract No…………….                   Date of Submission ………….

                                                   July – September

Quantity of Rate Contract ……….

Name of the Department         Value             Total   Central    State   PSUs   Others

                                                                         …..    Govt.      Govt.    …..

Central Government

1.                                                                                                                   *

2.                                                                                                                   1.Value of

3.                                                                                                                   orders

4.                                                                                                                   received

State Government                                 *

1.                                                                                                                  2.Value of

2.                                                                                                                  orders

3.                                                                                                                  executed

Public Sector Undertaking                   *

1.                                                                                                                  3.Value of

2.                                                                                                                  orders

3.                                                                                                                  pending

execution

Other Public/Autonomous Bodies

1.                                                                                                                  Position of orders from State Govt./PSUs

2.                                                                                                                   Autonomous Bodies outside DGS&D

3.                                                                                                                  Form 131 but at DGS&D Rates.

                                                              *

Foot Note: 1.Value indicated should   a) Value of orders received during the

                      be Total value                     quarter –                  Rs…………..

                      inclusive of all Taxes,    b) Value of orders supplied during the

                      duties and incidental            quarter -                 Rs……………

charges.                           

2.      Nil report should also be

sent.

                      
(Notice – cum-Cancellation Letter)

ANNEXURE – V

Government of India

Directorate General of Supplies & Disposals

Jeevan Tara Building, Parliament Street

NEW DELHI –1

(Application where the Purchaser decided to short-close the R/C)

No…………….

To

M/s……………………

…………………………..

Sub:                 Rate Contract for supply of ……………………………………….

                        Valid upto………………………………

Dear Sir,

(a)   It has been observed that there has been a notable downfall in the prices after conclusion of the R/C and that the stores are now obtainable on much lower rates (if it is possible to indicate a definite price at which the stores are now obtainable, the same can be counter offered to the R/C holder for their acceptance).

(b)   The quantity of goods supplied against the R/C so far have not been to the requisite standard in as much as there have been complaints from the user Departments in this regard, and

(c)   Your conduct in performance of the R/C has not been satisfactory in respect of

(d)   Any other reasons which can be indicated.

Note: Purchase Officer has to assign any one or the other reasons as relevant.

3.                  In view of the above, it has been decided to short-close the subject Rate Contract after……………(allow 45 days from the date of issue of the letter).  The Rate Contract may be treated as cancelled/withdrawn after ……………..(date given for the withdrawal of the R/C).  Any order placed by the Direct Demanding Officers after the expiry of the notice period shall not be executed by you.

Yours faithfully

For & on behalf of the Purchaser

Named in the Schedule.

ANNEXURE -VI

REVOCATION-CUM-CANCELLATION

(Application where R/C is revoked by the R/C Holder)

To

The Director General of Supplies & Disposals

………………………………………

………………………………………

Sub:                 Rate Contract for supply of ………………

                        Valid upto…………………………………

Sir,

            It is not possible for us to continue to supply against the subject Rate Contract for the following reasons:-

(a)

(b)

            In terms of Clause-24 DGS&D-1001,   I/We hereby revoke the Rate Contract which will take effect 45 days from the date of receipt of this communication by your office.  Formal Cancellation letter may be issued at the earliest.

Yours faithfully

(M/s…………….)

Note for Purchase Officer:-

            The Purchase Officer is expected to issue the cancellation letter counting 45 days from the date revocation letter is received in the DGS&D stating that:-

“In view of your letter dated ……………………the Rate Contract is hereby treated as short-closed/withdrawn with effect from……………………

All orders placed prior to this cancellation are, however, to be executed at the earliest.”