2f.Common_Procurement Process in BSNL

• Tender


  Bidding process that is open to all qualified bidders and where the sealed bids are opened usually in public for scrutiny and are chosen on the basis of price and quality
• Procurement Process in BSNL

  1. Tender types

  2. Tendering process

  3. Objectives of tender evaluation

  4. Bid opening committee

  5. Committee for evaluation of tender

  6. CVC guidelines
• Every organization needs various resources such as men, machines, material etc. for running its production facilities to produce sellable products/services. Many of these resources have to be procured from various suppliers.
• Most high value purchases are done through a tender process.
• Levels of procurement in BSNL

  • BSNL Corporate Office
  • Telecom Circle H/Q
  • SSA and other field units under the telecom circle
• Negotiations route


  Placing repeat orders up to 100% of the quantities contained in the running contract and at a rate negotiated with the existing vendors considering the prevailing market conditions
• Limited tender route


  Restricting bids by issue of limited tenders only to those parties who have proven expertise in manufacture and supply of such equipment and who have prototype approval and production clearance
• Open tender


  Bidding process that is open to all qualified bidders and where the sealed bids are opened usually in public for scrutiny and are chosen on the basis of price and quality
• Expression of Interest (EOI) route

  BSNL invites EOI from available vendors of new technology/equipment/new service, short-lists the bidders satisfying the terms of EOI, and then gives them the tender document
• The tender documents which include conditions, specifications, quantities etc., would require the approval of the authority not lower than that which is empowered to accept the tender.
• Information to be provided in the Notice Inviting Tender (NIT)

  • Date of issue of NIT
  • Tender No.
  • Date & Time of Receipt & Opening of Tender
  • Details & Quantities of Materials to be procured
  • Specifications of materials
  • Amount of Bid Security/Earnest Money
  • Dated and time of sale of Bid Documents
  • Price of Bid Documents
• The competent authority approving the NIT can make necessary conditions in individual cases
• The competent authority does not bind itself to accept the lowest or any other tender, and reserves its right to reject or all of the tenders received without the assignment of a reason.
• The competent authority also reserves its right to allow to the Central Government Public Sector Enterprises a purchase preference with reference to the lowest valid price bid where the quoted price in within 10% of such lowest price, other things being equal, as amended from time to time by the Govt.
• All tenders, in which any of the prescribed conditions are not fulfilled or are incomplete in any respect, are liable to be rejected.
• As per latest guideline of BSNL Corporate office, advertisement in case of tenders above certain threshold value should be given on central public procurement portal(CPPP), Government e-marketplace(GeM) portal as well as on the website of ministry/ Departments/Organizations ,if available.
• Documents included in the Bid Documents

  • Notice Inviting Tender
  • Instructions to Bidders
  • General (Commercial) Conditions of Contract
  • Special conditions of Contract, if any
  • Schedule of Requirements
  • Technical Specifications
  • Bid Form and Price Schedules
  • Bid Security Form
  • Performance Security Bond Form
  • Letter of authorization to attend bid opening
• Clarification of Bid Documents

  1. Prospective bidder notifies the Purchaser in writing or by FAX for clarification

  2. Purchaser responds in writing to any request for clarification not later than 14 days prior to the date of opening of the Tenders

  3. Copies of the query and clarifications sent to all prospective bidders
• Amendment of Bid Documents


  1. Purchaser may modify bid documents by amendments at any time prior to the date of submission of Bids

  2. Amendments notified in writing or by FAX to all prospective bidders

  3. Purchaser may extend the deadline for the submission of bids to afford prospective bidders reasonable time to take the amendment into account
• Documents establishing bidder's eligibility and qualification


  • Certificate of incorporation
  • Article or Memorandum of Association or partnership deed or proprietorship deed
  • Registration certificate from State Director of Industries or from Secretariat for Industrial Approval (SIA) , Ministry of Industries, Government of India
  • Approval from Reserve Bank of India /SIA in case of foreign collaboration
  • Latest and valid NSIC Certificate duly certified by NSIC
  • Type Approval Certificate given by Telecom Engineering Centre (TEC)
• Bid Security


  An amount of money (calculated @2% of estimated tender value) furnished by the bidder as part of the bid to protect the purchaser against the risk of bidder's conduct
• The bid security shall be in the form of a bank Guarantee/DD issued by a scheduled bank in favor of the purchaser, valid for a period of 180 days from the date of tender opening.
• A bid not secured in accordance with NIT shall be rejected by the Purchaser being non-responsive at the bid opening stage and returned to the bidder unopened.
• The bid security of the unsuccessful bidder will be discharged/returned as promptly as possible as but not later than 30 days after the expiry of the period of the bid validity prescribed by the purchaser.
• Monetary limit


  The amount equal to their monetary limit. In case of bidders having monetary limit as "NO LIMIT", the exemption will be limited to Rs.50,00,000/- (Rupees Fifty Lakhs) only as per existing policy of BSNL
• Bid security


  Required to protect the purchaser against the risk of bidder's conduct, which would warrant the forfeiture of bid security
• Bid security


  Shall be in the form of a bank Guarantee/DD issued by a scheduled bank in favor of the purchaser, valid for a period of 180 days from the date of tender opening
• A bid not secured in accordance with NIT shall be rejected by the Purchaser being non-responsive at the bid opening stage and returned to the bidder unopened
• Bid security of unsuccessful bidder


  Will be discharged/returned as promptly as possible as but not later than 30 days after the expiry of the period of the bid validity prescribed by the purchaser pursuant to tender document
• Successful bidder's bid security


  Will be discharged upon the bidder's acceptance of the advance purchase order satisfactorily and furnishing the performance security
• Bid security may be forfeited


  1. If the bidder withdraws his bid during the period of bid validity specified by the bidder in the Bid form

  2. In the case of successful bidder, if the bidder fails to sign the contract or to furnish performance security
• In both the above cases, the bidder will not be eligible to participate in the tender for same item for one year from the date of issue of APO
• Period of validity of bids

  Bid shall remain valid for 150 days from the date of opening of bids as prescribed by the purchaser. A bid valid for a shorter period shall be rejected by the purchaser being non-responsive
• Extension of bid validity period

  In exceptional circumstances, the purchaser may request the consent of the bidder for an extension to the period of bid validity. The bidder may refuse the request without forfeiting his bid security. A bidder accepting the request and granting extension will not be permitted to modify his bid
• Submission of bid


  The original and all copies of Bid shall be typed or printed and all the pages numbered consecutively and shall be signed by the bidder or a person or persons duly authorized to bind the bidder to the contract. The letter of authorization shall be indicated by written power-of-attorney accompanying the bid. All pages of the original bid, except for un-amended printed literatures, shall be signed by the person or persons signing the bid. The bids submitted shall be sealed properly
• The bid shall contain no interlineations, erasures or overwriting except as necessary to correct errors made by the bidder in which case such corrections shall be signed by the person or persons signing the bid
• Sealing and marking of bids

  The bid should be submitted in two covers. The first cover shall contain the original and four copies of the bid duly marked 'ORIGINAL' & 'COPY'. The second cover shall contain documents establishing bidder's eligibility as per Clause 2 along with Bid Security. Both the covers should be sealed separately by the personal seal of the bidder
• Addressing the envelopes


  1. The envelopes shall be addressed to the purchaser

  2. The envelope shall bear (the project name), the tender number and the words 'DO NOT OPEN BEFORE' (due date & time)

  3. The inner and outer envelopes shall indicate the name and address of the bidders to enable the bid to be return unopened in case it is declared 'late' or rejected
• Submission of bids


  Bids must be received by the Purchaser at the address on due date up to specified time
• The bidder shall submit his bid offer against a set of bid documents purchased by him for all or some of the systems/equipment as per requirement of the Bid Documents. He may include alternate offer, if permissible as per the bid. However not more than one independent and complete offer shall be permitted from the bidder