Railway Accounts Department Examinations

Showing posts with label Bid capacity. Show all posts
Showing posts with label Bid capacity. Show all posts

Saturday, April 20, 2019

Eligibility Criteria in works Tenders

Eligibility Criteria in works Tenders
(As per GCC 2018   Click here )
Three types
1. Technical Eligibility Criteria    2. Financial Eligibility Criteri  3.  Bid Capacity
·         Difference between the Technical Eligibility Criteria and Financial Eligibility Criteria is, the former considers Similar works, where as latter considers all works (incl: similar works)

·         Bid capacity shows the Contractor's financial resources / capability of executing the  big projects   i.e., valued Rs. 20 Crores and above,  if awarded.

Technical Eligibility Criteria
v  The Tenderer must have completed similar works as prescribed below in the last 7 years, ending last day of month previous to the one in which Tender is  invited.

v  That means Tender is invited on 6th February 2019,  The last day of previous month is January 31st, 2019.  So Seven years reckoned is from 01.02.2012 to 31.01.2019

v  Various parameters for completing the similar works in last 7 years as below.
No of similar works
Percentage of Advertised value of Tender
30 % and above
40% and above
60 % and above

v  If advertised value of Tender is Rs. 20 Crores,  the tenderer is qualified in Technical eligibility criteria, if he executed in last seven years is

1.       one work of Rs. 7 Crores, Second work of Rs. 7.5 Crores and Third work is Rs. 8 Crores  (30 % of advertised work of Rs. 20 Crore  is Rs.6.6 Crores)  
2.       one work of Rs. 8.5 Crores and Second work of Rs. 10 Crores   (40% of advertised Work of Rs.20 Crores  is  Rs. 8 Crores 
3.       One work of Rs. 12 Crores above (60% of advertised work of Rs. 20 Crores is Rs. 12 Crores)

v  The above percentage are applicable to component wise in Composite works involving more than one department, i.e., Civil work, Electrical work, S&T work etc.

v  Definition of separate Component :  The component work should be more than 2 Crores each  

v  Up to Rs. 50 Lakhs work - Technical & Financial Eligibility Criteria is not required.

Financial Eligibility Criteria:

Tenderer must have received
150 % or above of the Advertised value of the Tender
Previous 3 financial years  & Current financial year up to the date of opening  of  the Tender

v      Example: Advertised Tender value is  Rs. 20 Crores.  Tender Opening date is 01.09.2018

v      The Tenderer must have received Rs. 30 Crores (150% of Rs. 20 Crores) or above during
                 the period from 01.04.2015 to 01.09.2018

v      The Tenderer should submit the Attested certificate from Concerned Dept/clients  or
                   Audited Balance Sheet duly certified by CA (Chartered Accountant)

v               Up to Rs. 50 Lakhs work - Technical & Financial Eligibility Criteria is not required.


v  Required for works costing Rs. 20 Crores and above only

v  Available Bid Capacity should be equal  or more than the Advertised value of Tender

v  Available Bid Capacity formulae  =  (AxNx2) -B

v  A = Payment received in any one Financial Year  - Maximum value of works completed as well as Works in Progress executed and payment received during the current year (up to date of opening the Tender ) and the last 3 years.

v  N = Number of Years prescribed for completion of work for which Bids / Tenders have been received.

v  B = value of existing commitments & balance amount of ongoing works with the Tenderer to be completed in next "N" years.  

Example :
·         Date of opening of Tender: 15th Feb, 2019
·         Advertised value of Tender : Rs. 100 Crores
·         N = 3 years
·         Maximum value of completed works and Works in progress of Contractor ' Ramesh' is as follows.
Completed works (Rs)
Works in progress (Rs)
2018-19 (up to 15.02.2019)
15 Crores
5 Crores
10 Crores
25 Crores
5 Crores

·         Therefore,  A of Contractor Ramesh is Rs. 25 Crores (which is maximum in any financial year of above period)

B = value of existing commitments & balance amount of ongoing works with the Tenderer Ramesh to be completed in next "N" years.  

Existing commitments & Balance amount of ongoing works
Rs. 5 Crores
Rs. 7 Crores
Rs. 3 Crores
Rs. 15 Crores

·         Therefore Contractor Ramesh's  B  = Rs. 15 Crores

·         Finally  A = Rs. 25 Crores,    N = 3 years    B = Rs. 15 Crores

·         Available Bid Capacity of Contractor Ramesh is (AxNx2) -B

= ( Rs.25 Crores x 3 years x 2)  - Rs. 15  Crores

Rs.150 Crores - Rs. 15 Crores = Rs. 135 Crores

·         Hence Contractor Ramesh is qualified to bid the works of value up to Rs. 135 Crores.