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 alongwith 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 This 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:

1. President of India
2. Governor(s) of State(s) as mentioned in the Constitution of India
3. Heads of Union Territories
4. Officers of Public Sector Undertakings/Bodies & Corporations.

2.2 This rate contract will be operated by the officers autherised by DGS&D, to be called as the Direct Demand Officer (DDO), in addition to the Officers of the DGS&D. The list of DDOs can be obtained from the concerned Purchase Directorate. DGS&D may add or remove any officer from the list at any time during the currency of the rate contract.

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.

1. Directorate General of Supplies and Disposals,

Jeewan Tara" Building, 5, Sansad Marg,
New Delh - 110 001.

2. Office of Deputy Director General of Supplies & Disposals New CGO Complex, New Marine Lines,
   Mumbai - 400 020.
   
3. Office of Deputy Director General of Supplies & Disposals 6, Esplanade East, CALCUTTA - 700 069.
   
4. Office of Deputy Director General of Supplies & Disposals, Shastri Bavan, 35 Haddows Road, Chennai - 600 006.

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 RC 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 R.C. 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.

3.2 Supply Order(s) against this 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 the 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 sub-ordinate 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 order 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 Directorate - 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 …… ( herefill 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 that "the delivery date shown has been agreed to by the Contractor under his letter No. and provided the date of delivery has been expressly 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 of 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 alongwith 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. Photocopy of the Railway Receipt. The reimbursement of Freight will be made alongwith 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 Notes 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 which ever 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, 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 Supply Order 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-stocks 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 themselves 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 respect 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 in spite 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) can not 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 Supplying 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:

1. That an amount equal to the liquidated damage for delay in the supply of the stores after the expiry of contracr 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.
2. 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.
3. 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.
4. 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 The right to cancel the Supply Order rests only with the Secretary and the DDOs cannot cancel the Supply Order by himself. In case the Supply Order is required to be cancelled, the DDOs should refer the case to DGS&D who can cancel the Supply order and effect repurchase or authorise repurchase by the DDOs.

10.2 Proposal for cancellation of Supply Order need be referred to DGS&D only in case of Supply Orders above Rs. 10 lakh in value and where it is established that the delay in supply is due to wilful negligence on the part of the supplier.

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 Contractor 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