Procurement Guidelines for NAIP

[For official use only]
Indian Council of Agricultural Research

Ministry of Agriculture
(Government of India)
New Delhi
Reference Handbook
Procedures & Guidelines

For
Procurement of Goods/Equipment, Works
and Consulting Services
under
National Agricultural Innovation Project

Funded by World Bank
[Credit No. 4161-IN & 4162-IN]
Project Implementation Unit (PIU), NAIP,

5th Floor, Krishi Anusandhan Bhawan – II (KAB-II),
Pusa Campus, New Delhi – 110 012
Chapter – II : Procurement provisions in the Project Agreement
TABLE OF CONTENTS
Chapter Description Page
I General introduction 1-3

II Procurement provisions in the Project Agreement
Procurement and Consultants’ Services
Section I : General 4
Section II : Particular Methods of Procurement of Goods, Works 4-5
and Services (other than Consultants’ Services)
Section III : Particular methods of procurement of Consultants’ 5-6
Services
Section IV : Review by the Association of Procurement Decisions 6
III Applicable Procurement Guidelines

1. Procurement Plan 7
2. Procurement Guidelines 7-8

3. Transparency In Public Procurement 8-9
4. Settlement Of Disputes, Reconciliation And Arbitration 9-10
5. Fraud And Corruption 11
6. Warranty 11
7. Uploading Of Data On Website 11
IV Method of Procurement – Salient features
A, Procurement of Goods & Works
1. International Competitive Bidding (ICB) 13-14
2. Other Methods of Procurement 14-17
2.1 National Competitive Bidding (NCB)
2.2 Shopping
2.3 Direct Contracting
2.4 Force Account
3. Misprocurement 17
4. Important aspects for consideration in Procurement of Costly 17-19
Equipments
4.1 Specifications
4.2 Warranty:
4.3 Qualification Criteria
4.4 Training
4.5 On-site Service
4.6 Consumer Certificates
4.7 Bid Evaluation Committees
4.8 Indian Laws
4.9 Successful Bidder

4.10 Payment Schedule
19-22
A. B. Procurement of Consulting Services
1. Methods for selection of Consultants
1.1 Quality and Cost based Selection (QCBS)
1.2 Other methods of procurement
1.2.1 Quality Based Selection (QBS)
1.2.2 Selection under a Fixed Budget System (FBS) :
1.2.3 Least Cost Selection (LCS)
1.2.4 Selection based on the Consultant’s Qualification (CQS)
1.2.5 Single Source Selection (SSS)
1.2.6 Selection of Individual Consultants (SIC)
2. Salient features for Procurement of Consultants 22-24
2.1 General Considerations
2.2 Preparation of the Terms of Reference of the Consultant
2.3 Cost Estimates or Budget
2.4 Advertising (Seeking Expression of Interest) for Short-listing
2.5 Short listing of Consultants
2.6 Other Considerations
2.7 Lump Sum Contracts
2.8 Time-based Contracts
3. Misprocurement 25
V Detailed Procurement Procedures and Formats for 26-39
International Competitive Bidding (ICB)
VI Detailed Procurement Procedures and Formats for 40-56
National Competitive Bidding (NCB)
VII Detailed Procurement Procedures and Formats for 57-58
Shopping
VIII Detailed Procurement Procedures and Formats for Direct 59-60
Contracting
IX Detailed Procurement Procedures and Formats for Force 61
Account
X Procurement procedures and formats for Selection of
Consultants
1. Main Considerations In Selection Of Consultants 62
2. Eligibility 62
3. Association Between Consultants 62-63
4. Selection Of Consultant 63
5. Method For Selection Of Consultant 63-71
5.1 Quality And Cost-Based Selection (Qcbs)
5.1.1 Terms of Reference (TOR)
5.1.2 Cost Estimate (Budget)
5.1.3 Advertising
5.1.4 Short List of Consultants
5.1.5 Preparation and Issuance of the Request for Proposals
(RFP)
5.1.6 Letter of Invitation (LOI)

5.1.7 Information to Consultants (ITC)
5.1.8 Contract
5.1.9 Receipt of Proposals
5.1.10 Evaluation of Proposals: Consideration of Quality and Cost
5.1.10.1 Evaluation of the Quality
5.1.10.2 Evaluation of Cost
5.1.10.3 Combined Quality and Cost Evaluation
5.1.11 Rejection of All Proposals, and re –invitation
5.1.12 Negotiations and Award of Contract
5.1.13 Publication Of The Award Of Contract
5.1.14 Confidentiality
5.2 Other Methods of Selection 71-75
5.2.2 Selection under a Fixed Budget
5.2.3 Least-Cost Selection
5.2.4 Selection Based on Consultants’ Qualifications
5.2.5 Single-Source Selection
5.2.6 Selection of Individual Consultants
6. Types of Contracts 75-76
6.1 Lump Sum (Firm Fixed Price) Contract
6.2 Time-Based Contract
7. Important Provisions 76-77
XI Review Procedures and documents to be submitted to 78-80
Bank
XII Introduction to Incoterms – 2000 81-90
XIII Provisions of exemption from Customs and Excise tariff 91
relevant to World Bank funded
Annexures
1 Bid Evaluation Standard Forms for Chapter V 92-126
2 Standard Form under Chapter VI 127-160
3 Formats under Chapter VII 161-176
4 Evaluation report Forms for Chapter X 177-201
5 Prior and Post Review checklists form Chapter-XI 202-221
6 Formats referred under Chapter XIII 222-227
7 World Bank’s procurement Guidelines
7.1 For Goods/Works
7.2 For Consultancy
ABBREVIATIONS AND ACRONYMS
Abbreviations Acronyms
IDA International Development Association
NAIP National Agricultural Innovation Project
ICB International Competitive Bidding
NCB National Competitive Bidding
TTL Task Team Leader
PS Procurement Specialist
PAS Procurement Accredited Staff
IBRD International Bank for Reconstruction and Development
QCBS Quality and Cost Based Selection
QBS Quality Based Selection
FBS Selection under Fixed Budget
SIC Selection of Individual Consultant
LCS Least Cost Selection
CQS Selection Based on Consultants’ Qualification
SSS Single Source Selection
DGS&D Directorate General of Supplies & Disposal
PIP Project Implementation Plan
IFB Invitation for Bids
UNDB United Nations Development Business
REOI Request for Expression of Interest
RFP Request for Proposal
TOR Terms of Reference
LOI Letter of Invitation

Abbreviations Acronyms
ITC Instructions to Consultants
CGL Consultancy Guidelines
ITB Instructions to Bidder
GCC General Conditions of Contract
SCC Special Conditions of Contract
BDS Bid Data Sheet
SBD Standard Bidding Document
BG Bank Guarantee
CHAPTER I
General Introduction
International Development Association (IDA) has provided financing of US$ 200

millions for the implementation of National Agricultural Innovation Project [NAIP,
Project ID – P092735, IDA Credit No. 4161-IN & 4162-IN].
The objective of the Project is to contribute to the sustainable transformation of

the India’s agricultural sector from primarily food self-sufficiency to one in which a
market orientation is equally important for poverty alleviation and income
generation, and to accelerate the collaborative development and application of
agricultural innovations between public research organizations, farmers, the
private sector and other stakeholders.
Sound public procurement is vital for ensuring success of a project through

promoting good governance and better fiscal management with economy and
efficiency. Under the World Bank financed Projects, the Procurement procedures
of the World Bank are required to be followed. This is essential to make the
expenditure eligible for reimbursement. The introduction to procurement policies
is as under :-
1. The Articles of Agreement require the Bank to ensure that the proceeds of
Loan/ Credit are used for the purposes intended with due attention to
economy and efficiency and without regard to political or other non-economic
influences or considerations.
2. Accordingly, Bank has developed Guidelines for procurement of Goods,
Works and Consultancy, which represent:
• Accumulated experience of the Bank/ IDA; and
• Good public procurement practices on a global scale.
3. Impartial administration of procurement among all eligible bidders is essential
to maintain Bank's ability to raise financial resources from its member
countries and in the capital markets.
4. Procurement is an important aspect of Bank's operations. It is a critical
element in project implementation and unless it is carried out efficiently and
promptly, the full benefits of the Project cannot be realized. Bank loans/
credits are normally disbursed as expenditures are incurred. Since delays in
procurement, delays disbursements, every effort should be made to ensure
prompt handling of procurement.
5. Good procurement practices alone cannot ensure that the Bank assisted
Projects will achieve their developmental goals, but these will definitely
enhance the developmental effectiveness. However, poor procurement
practices virtually guarantee that these development goals will not be fully
achieved.
6. The responsibility for the execution of the Project and therefore for the award
and administration of the contracts under the Project rests with the Borrower.
7. Role of procurement is critical for:
• Ensuring satisfactory implementation;
• Ensuring speedy transfer of resources by way of disbursement;
• Achieving economy and efficiency; and
• Ensuring success of the Project.

8. While in practice, the specific procurement rules and procedures to be
followed in the implementation of a project depend on the circumstances of
the particular case, following four considerations generally guide the Bank's
requirements:
• The need for economy and efficiency in the implementation of the project
including the procurement of the goods and works involved;
• Bank's interest as a co-operative institution in giving all eligible bidders
from developed and developing countries an opportunity to compete in
providing goods, works and services financed by the Bank;
• Bank's interest as a development institution in encouraging the
development of domestic contracting and manufacturing industries in the
borrower’s country; and
• The importance of transparency in the procurement process.
The Bank has found that, in most cases, the above needs and interests can
be best realized through International Competitive Bidding (ICB), properly
administered and with suitable allowance for preferences for domestically
manufactured goods and, where appropriate, for domestic contractors for
works under prescribed conditions.
9. Thrust of Bank's current procurement policy are:
• Strong focus on the development function and on increased borrower
accountability;
• Emphasis on upfront project work, stressing better procurement planning
and client capacity analysis to ensure good quality at entry; and
• An integral approach to supervision of procurement that strengthens post
review of contracts and sets prior review thresholds on the basis of
borrower's procurement capacity and past performance.
10. Features of Bank's Model procurement documents are:
• Sharing of risks between the parties to the contract;
• Incorporation of suitable qualification criteria;
• Incorporation of precise and fair evaluation criteria;
• Incorporation of non-discriminatory/ broad technical specifications;
• Ensuring transparency by public bid opening; pre-disclosure of
qualification and evaluation criteria; and absence of negotiations;
• Award to the lowest evaluated responsive bidder; and
• Incorporation of a suitable dispute resolution mechanism and market
oriented payment terms.
11. Methods of Procurement:
Method of Procurement that a Borrower chooses to use for a particular project

depends on -
1. the nature and size of the project

2. it's procurement content
3. urgency
Commonly used methods are-

1. International Competitive Bidding (ICB)
2. National Competitive Bidding (NCB)
3. Limited International Bidding (LIB)
4. Shopping (International & National)
5. Direct Contracting
6. Force Account
Bank considers ICB as the most preferred method of procurement with an

optional element of domestic preference.
Other methods of procurement may be adopted where considered

appropriate with the approval of :-
Task Team Leader (TTL)

Procurement Specialist (PS)
Procurement Accredited Staff (PAS)
12. Salient features of the Bank’s policies and procedures for selection,
contracting and monitoring of consultants for projects financed by loan from
IBRD or credits/ grants from IDA are :-
Need for high quality services

Need for economy and efficiency
Opportunity to all qualified consultants
Transparency in the selection process
Whereas Quality and Cost-Based Selection (QCBS) is the most commonly

recommended method, other methods such as Quality Based Selection
(QBS), selection under a Fixed Budget (FBS), least cost Selection (LCS),
selection based on Consultants Qualifications (CQS) and Single Source
Selection (SSS) may be adopted depending upon the size of the assignment,
continuation of the previous work, urgency of selection and where the number
of qualified firms for the particular assignment is limited.
CHAPTER II
Procurement provisions in the Project Agreement
Procurement provisions in the Project Agreement Schedule 2 “Procurement and
consultant’s services” annexed to Project Agreement (National Agricultural
Innovation Project) stipulate the procurement procedures. These are reproduced
below :-
Procurement and Consultants’ Services
Section I : General
A. All goods, works and services (other than consultants’ services) shall
be procured in accordance with the provisions of Section I of the
“Guidelines : Procurement under IBRD Loans and IDA Credits” dated
May 2004 (the Procurement Guidelines), and with the provisions of this
Schedule.
B. All consultants’ services shall be procured in accordance with Section I

and IV of the “Guidelines : Selection and Employment of Consultants
by World Bank Borrowers” dated May 2004 (the Consultant
Guidelines), and with the provisions of this Schedule.
C. The capitalized terms used below in this Schedule to describe

particular procurement methods or methods of review by the
Association of particular contracts, have the meanings ascribed to
them in the Procurement Guidelines, or Consultant Guidelines, as the
case may be.
Section II : Particular Methods of Procurement of Goods, Works and

Services (other than Consultants’ Services)
B. International Competitive Bidding : Except as otherwise provided in

Part B of this Section, goods estimated to the cost US $ 1 million and
above shall be procured under contracts awarded in accordance with
the provisions of Section II of the Guidelines and paragraph 5 of
Appendix 1 thereto. Domestic Preference will be available in
accordance with the provisions of the Guidelines.
C. Other Procurement Procedures
1. National Competitive bidding : Goods and works estimated to

cost more than US$ 50,000 equivalent per contract, may be
procured under contracts awarded in accordance with the
provisions of paragraphs 3.3 and 3.4 of the Guidelines.
2. Shopping : Goods and works estimated to cost less than US$

50,000 equivalent per contract may be procured under contracts
awarded on the basis of shopping procedures in accordance with
the provision of paragraph 3.5 of the Guidelines. Contracts for
vehicles costing less than US$ 100,000, however, may be
purchased on the basis of shopping procedures. Rate contracts of
Director General Supplies & Disposal (DGS&D) are acceptable as
substitute to shopping procedures.
3. Direct Contracting : Goods which are proprietary in nature and

estimated to cost less than US$ 10,000 equivalent per contract may
all be procured in accordance with the provision of paragraphs 3.6
and 3.7 of the Guidelines. Petty items estimated to cost less than
US$ 100 equivalent per contract also may be procured in
accordance with the provisions of paragraph 3.7 of the Guidelines.
4. Force Accounts : Works which meet the requirements of

paragraph 3.8 of the Guidelines, and are estimated to cost less than
US$ 30,000 equivalent per contract, may be carried out by force
account in accordance with the provisions of the said paragraph of
the Guidelines provided, however, that works under the Project
estimated to cost US$ 10,000 or more proposed under force
account procedures will require prior approval from the Association.
5. Consortia Participation in Procurement : Goods and works

required for Subprojects shall be procured in accordance with
procedures acceptable to the Association, and specified in the PIP.
Section III : Particular methods of procurement of Consultants’ Services
A. Quality and Cost-based Selection : Except as otherwise provided in

Part B of this Section, consultants’ services shall be procured under
contracts awarded on the basis of Quality and Cost Based Selection.
For purposes of paragraph 2.7 of the Consultant Guidelines, the short
list of consultants for services estimated to cost less than US$ 500,000
equivalent per contract may comprise entirely national consultants.
B. Other Procedures
1. Selection under a Fixed Budget : Services for assignments which

the Association agrees meet the requirements of paragraph 3.5 of
the Consultant Guidelines may be procured under contracts
awarded on the basis of a Fixed Budget in accordance with the
provisions of paragraphs 3.1 and 3.5 of the Consultant Guidelines.
2. Least-cost Selection : Services for assignments which the

Association agrees meet the requirements of paragraph 3.6 of the
Consultant Guidelines may be procured under contracts awarded
on the basis of Least-cost Selection in accordance with the
provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.
3. Selection Based on Consultants’ Qualifications : Services

estimated to cost less than US$ 200,000 equivalent per contract
may be procured under contracts awarded in accordance with the
provisions of paragraphs 3.1, 3.7 and 3.8 of the Consultant
Guidelines.
4. Single Source Selection : Services for tasks in circumstances

which meet the requirements of paragraph 3.10 of the Consultant
Guidelines for Single Source Selection, may, with the Association’s
prior agreement, be procured in accordance with the provisions of
paragraphs 3.9 through 3.13 of the Consultant Guidelines.
5. Individual Consultants : Services for assignments that meet the

requirements set forth in the first sentence of paragraph 5.1 of the
Consultant Guidelines may be procured under contracts awarded to
individual consultant in accordance with the provisions of paragraph
5.2 through 5.3 of the Consultant Guidelines. Under the
circumstances described in paragraph 5.4 of the Consultant
Guidelines, such contracts may be awarded to individual
consultants on a sole-source basis.
Section IV : Review by the Association of Procurement Decisions
The Procurement Plan shall set forth those contracts, which shall be
subject to the Association’s Prior Review.
The prior review thresholds in the procurement plan are as under :-

US$ 1 million and above for goods and equipments,
US$ 200,000 equivalent and above for works and
US$ 200,000 for consultancies involving firms.
US$ 50,000 equivalent or more for individual consultants and firms on
Single Source Selection Basis
Works to cost US$ 10,000 or more (limiting to US$ 30,000) procured
under Force Account procedures
All other contracts shall be subject to Post Review by the Association.

Chapter – III : Applicable procurement Guidelines
CHAPTER III
Applicable Procurement Guidelines
1. PROCUREMENT PLAN
Procurement Plan is the guiding light of a project and is a document that

indicates as to What, How and When various activities of procurement is
to happen. Prior to the issuance of any invitations to pre-qualify for
bidding or to bid for contracts the proposed procurement plan for the
project shall be furnished to the Bank for their review and approval in
accordance with the provisions of paragraph 1 of appendix 1 of the
guidelines.
Procurement Plan gives the details of the procurement of goods

,equipments, civil works and consultancy services for the first 18 months of
the project that have to be prior reviewed by the Bank and is updated
periodically with Bank`s approval and covers next 18 months of the project
implementation. A procurement schedule in the prescribed (format
enclosed) indicating details of each package should be compiled and
forwarded to the Bank for review and clearance before initiating action .
The Borrower shall promptly inform the Bank of any delay or other
changes in the scheduling of Procurement process, which could
significantly affect the timely and successful implementation of the project
contracts, and agree with the Bank on corrective measures.
2. PROCUREMENT GUIDELINES
A. General of section-I, Schedule 2, annex to the Project Agreement

(NAIP) specifies that all goods, works and services (other than
consultants’ services) shall be procured in accordance with the
provisions of Section I of the “Guidelines Procurement under IBRD
Loans and IDA Credits” dated May 2004 (the Procurement
Guidelines, enclosed as Annexure 7.1), and with the provisions of
this Schedule.
B. General of section-I, Schedule 2, annex to the Project Agreement

(NAIP) specifies that all consultants’ services shall be procured in
accordance with Sections I and IV of the “Guidelines : Selection and
Employment of Consultants by World Bank Borrowers” dated May
2004 (the Consultant Guidelines, enclosed as Annexure 7.2), and
with the provisions of this Schedule.
NOTE :
1. The Development Credit Agreement and Project Agreement govern the legal
relationship between the Borrower and the Bank and the Guidelines are made
applicable to procurement of goods, works and consultant’s services for the
project as provided in the Project Agreement.
2. The rights and obligations of the Borrower and the provider of goods, works and
consultant’s services for the project are governed by the bidding documents,
Request for Proposals and by the contracts signed by the Borrower with the
provider of goods, works and services and not by these Guidelines or the
Development Credit Agreement and Project Agreement.
3. TRANSPARENCY IN PUBLIC PROCUREMENT

3.1 The total value of public procurement in India is over Rs. 400,000 crore
(US$ 100 Billions) i.e. over 25% of the G.D.P. of the country. Public
Procurement function have been growing both in terms of size of activity
as well as value. With such increase in the activity of public procurement
functions, the expectations of the participating industry and the users are
also growing. One of the major expectation from the Industry has been to
provide better access to information and improved transparency in Public
Procurement process which in turn need to demonstrate greater
transparency and enhanced level of trust between the buying and
supplying agencies.
3.2 The Right to Information Act (RTI) has come into force in India since
October 2005. The Act gives to the Public, legal rights to get information
about the utilization of public funds, progress reports of ongoing projects,
state circulars, contracts, etc. The new law, places India among 55
countries in the World to have such legislations.
3.3 The Karnataka Govt., have taken lead to enact transparency in Public
procurement Act 1999 which has come into force with effect from 4th
October, 2000. The Tamilnadu Govt. have also followed and enacted
such a legislation in the State. Some of the other State Govts also have
initiated efforts to enact laws and bring Public procurement in the ambit of
legal environments. The Act is intended to streamline procedure in Public
Procurement and also ensure accountability in Public Procurement.
3.4 Success of a project is dependent on good governance, better fiscal

management with efficiency and economy and sound procurement policies
and procedures which are transparent. Procurement Procedures based
on World Bank guidelines are required to be followed in world Bank’s
financial projects. This is essential for reimbursement of expenditures on
the Projects.
3.5 Following considerations generally guide the Bank’s requirements :-
• The need for economy and efficiency in the implementation of

the project.
• Bank’s interest as a cooperation institute in giving all eligible
bidders from developed and developing countries an opportunity
to compete.
• Bank’s interest as a development institute in encouraging the
development of domestic industry.
• The importance of TRANSPARENCY in the procurement
procedures.
3.6 In World Bank funded projects, transparency is one of the important

aspect. So, in order to ensure transparency in the Procurement
procedure, the World Bank has issued guidelines for procurement of
Goods, Works, Services and Consultants. World Bank has also
standardized the Bidding Documents for such purchases and also the
formats for offering Bids against various types of procurement such as
ICB, NCB, Shopping, etc.
3.7 Some of the requisites to be followed in the procurement activities to

ensure transparency in contracts as suggested by World Bank are as
under :-
i) Equal opportunities to all eligible bidders

ii) Wide Publicity of Procurement Notices including in UNDB (on-line).
iii) Pre-disclosure of qualification and evaluation criteria
iv) To avoid restricted participation, Specification of requirements to be
broad and performance based, and not branded or specific to a
particular bidder.
v) Redressal of clarifications of the Bidders
vi) Public opening of Bids
vii) Notify the proceeding of bid opening/technical score of proposal to
all the participants.
viii) Absence of negotiation except in exceptional circumstances
ix) Publication of details of contract awarded in UNDB
x) Provision of debriefing
4. SETTLEMENT OF DISPUTES,RECONCILIATION AND ARBITRATION
4.1 The provisions for settlement of disputes or differences of any kind

,between the purchaser and the supplier are given in the Guidelines for
Procurement, General Conditions of Contract and the Special Conditions
of contract of the Standard Bidding Documents issued by the World Bank..
4.2 Various provisions are:
> Resolving disputes or differences amicably by mutual consultations

> In case of failure to resolve within 30 days, a notice will be given by
either party indicating its intention to commence arbitration.
> Arbitration proceedings shall be initiated as per provisions in the
special conditions of contract.
> In the case of contracts with foreign supplier:
1. International Commercial Arbitration.
2. UNCITRAL Arbitration rules.
3. Rules of Conciliation and Arbitration of the ICC.
4. Rules of London Court of international Arbitration.
5. Rules of Arbitration Institute of the Stockholm chamber of
commerce.
> Reference to the above provision of rules to be given in the GCC and
SCC.
> In the case of Contracts with supplier of the Purchaser country, the
dispute to be referred to adjudication or Arbitration in accordance with
the Laws of the purchasers country.
> The World Bank should not be named as Arbitrator.
> In case of the contract with an Indian supplier the Arbitration and
Reconciliation Act 1996 will be applicable.
> Important features of the act are:
The parties are free to determine the number of arbitrators
provided that such number shall not been an even number.
A person of any nationality may be an arbitrator. Unless
otherwise agreed by the parties.
In case of disagreement on a procedure for appointing Arbitrators,
each party shall appoint one Arbitrator and the two appointed
Arbitrators shall appoint the third Arbitrator who shall act as the
presiding Arbitrator.
If the appointing procedures as explained does not work and
party fail to appoint Arbitrators, the appointment shall be made,
upon request of a party, by the Chief Justice of India or any
person or institution designated by him.
In the case of appointment of sole or third Arbitrator in an
International Commercial Arbitration, the Chief Justice of India or
institution designated by him may appoint an arbitrator of a
Nationality other than the nationalities of the parties.
The Arbitral tribunal is not bound by the code of Civil Procedure
1908 or the Indian Evidence Act 1872; the parties are given
freedom on the procedures to be followed by the arbitral tribunal
in conducting it’s proceedings.
The parties shall be treated with equality and each party shall be
given a full opportunity to present his case.
The decision of the arbitral tribunal shall be made by a majority of
all its members.
The arbitral tribunal shall specify :-
i) The party entitled to costs
ii) The party who shall pay the costs
iii) The amount of costs or method of determining that
amount
iv) The manner in which costs shall be paid
4.3 Challenge of Award

> An arbitral award may be seta side by the court only if :-
A part was under some incapacity
The part making the application was not given proper notice of
the appointment of an arbitrator or of the arbitral proceedings
or was otherwise unable to present his case
The arbitral award deals with a dispute not falling within the
terms of reference of arbitration
The arbitral award is in conflict with the public policy of India.
5. FRAUD AND CORRUPTION
5.1 Under Chapter “1. Introduction” of the World Bank guidelines on

Procurement of Goods, Works and Services stress upon maintaining
highest standards of ethics during procurement and execution of contracts.
5.2 Unethical methods ,such as Corrupt .collusive, coercive and fraudulent

practices adopted by Borrowers, Bidders, Suppliers, Contractors or even
consultants in awarding or execution of the contracts may result in
rejection of the proposal and cancellation of the related portion of the loan.
In addition ,the Bank may Sanction /declare the firm ineligible either
indefinitely or for a particular period.
5.3 Bidding documents may as well be modified to take an undertaking of the

Bidder to observe in Bidding /execution of contract, Country`s Laws
against fraud and corruption.
6. WARRANTY
6.1 Warranty and AMC for the duration and life of the equipment are
desirable. We have to be careful in deciding the period for which they are
to be provided.
6.2 Laboratory equipments with short life may require shorter warranty period
and AMC. Providing a very long warranty with AMC may add to cost
without being fruitfully utilized as the length of commitment does have an
effect on price.
6.3 For procurement of costly equipments a warranty with AMC coverage of

around 5 years (2+3years or 3+2years respectively) may be preferred to
begin with.
6.4 Warranty period of 24/27 months should be provided only if an accepted

industry standard for the equipment being procured is available.
Otherwise, this may result in reduced competition and increased cost.
6.5 Bank Guarantee Coverage for AMC should invariably be obtained.
7. UPLOADING OF DATA ON WEBSITE
7.1 A Website (http://www.icar.org.in/naipdir/index.htm) of NAIP has been

launched and is being updated periodically. All information on the
Introduction of the Project, guidelines on the various activities of the
project including it`s funding arrangements are available on the net.
7.2 In line with World Bank guidelines to give maximum publicity to the
Tenders and related procurement activities, all General Procurement
notices, Expression of Interest (EOI) notices, Bid Documents, Contract
award notices will be uploaded on the website .
PROCURMENT SCHEDULE FOR EQUIPMENT AND MATERIALS

COUNTRY:INDIA PROJECT:NATIONAL AGRICULTURAL INNOVATION PROJECT (NAIP)
BORROWER: Government of India
Implementation Department: Indian Council of
Agricultural Research, (ICAR), Ministry of
Agriculture,
DESCRIPTION 20 20 20
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PREQUALIFICATION ACTIONS PROCUREMENT ACTION METHOD OF PROCUREMENT

A - INITIATE PREPARATION OF 1. INITIATE PREPARATIONS 9. INITIAL ICB - INTERNATIONAL COMPETITIVE
PREQUALIFICATION DOCUMENTS OF SPECIFICATIONS AND DELEVERY AT BIDDING
AND EVALUATION CRITERIA BID DOCUMENTS SITE
B - TRANSMIT DOCUMENTS AND 2.TRANSMIT 10. INTERIM LCB - LOCAL COMPETITIVE BIDDING
CRITERIA TO IDA SPECIFICATIONS AND BID DELIVERY AT
DOCUMENTS TO IDA SITE
C - IDA CLEARANCE OF DOCUEMTNS 3. IDA CLEARANCE OF 11. FINAL PS - PRUDENT SHOPPING
AND CRITERIA SPECIFICATIONS AND BID DELIVERY AT
DOCUMENTS SITE
D - ISSUE PREQUALIFICATION 4. ISSUE INVITATION TO BID NEG - NEGOTIATION
NOTICE
E - RECEIPT OF CONTRACTOR 5. OPEN BIDS
PREQUALIFICATION DATA
F - TRANSMIT EVALUATION REPORT 6. TRANSMIT EVALUATION REPORT AND AWARD
AND RECOMMENDATIONS TO IDA RECOMMENDATIONS TO IDA
G - IDA CLEARANCE OF 7. IDA CLEARANCE OF RECOMMENDATIONS
RECOMMENDATIONS
8. AWARD CONTRACT
Chapter – IV : Methods of Procurement – Salient Features
CHAPTER IV
METHODS OF PROCUREMENT – SALIENT FEATURES
A. Procurement of Goods & Works
4. International Competitive Bidding (ICB)
ICB is the preferred method of procurement, Provisions of Section II

of the Guidelines and paragraph 5 of Appendix 1 thereto shall apply.
The objective of ICB as described in the Guidelines is to provide all eligible
prospective bidders with timely and adequate notification of a Borrower’s
requirements and an equal opportunity to bid for the required goods.
Provisions of paragraphs 2.55 of the Guidelines and Appendix 2
thereto for domestic preference shall apply to goods manufactured in
the territory of the Borrower.
To be adopted where :
(a) Goods and equipments packages are estimated to cost US$ 1
million and above.
(b) Irrespective of value, where supplies need import and entail
payment in foreign currency;
(c) Generally for all contracts in which foreign firms can be expected to
participate.
Requirement :
Publication of General Procurement Notice, followed by specific
Invitation for Bids (IFB) in United Nations Development Business
online (UNDB online) and in the Development Gateway’s dgMarket.
Bank will arrange for its publication. The General Procurement Notice
shall be updated annually for all outstanding procurement;
Transmission of IFB to embassies and trade representatives of
countries of likely suppliers/ contractors of the equipment and
materials required and also to those who have expressed interest in
response to the General Procurement Notice;
Publication of IFB in at least one national newspaper having wide
circulation in all regions of country;
Publication of IFB in the departmental website
Use of Bank’s standard bidding document;
Sale of bidding document to start only after publication of IFB in
UNDB and national newspaper(s);
Bidding period 45 to 90 days from date of start of sale of bidding
documents.
Steps :
Notification/Advertising;
issue of Bidding Document;
submission of Bids;
public opening of bids;
evaluation;
selection of lowest evaluated responsive bid – based on post
qualification ;
Contract Award; and
Contract performance
5. Other Methods of Procurement
Where ICB would not be most economic and efficient method of
procurement and where other methods are deemed more appropriate;
and/ or
As provided in the Legal Agreement
2.9 National Competitive Bidding (NCB)
Provisions of paragraphs 3.3 and 3.4 of the Guidelines shall apply for
NCB contracts. National Competitive Bidding is a competitive bidding
advertised nationally for procuring goods/ works, which by their nature or
scope are unlikely to attract foreign competition. Currency specified shall
be Indian Rupees for bidding as well as payment. However, foreign
bidders are not to be precluded from participation, if they wish to bid, but
they are also to be paid only in Indian Rupees. Domestic preference will
not be applicable.
To be adopted where
The contract values are more than US$ 50,000 equivalent for Goods/
Works per contract;
Works are scattered geographically or spread over time;
Works are labour intensive;
The goods and works are available at prices below international
market; or
Foreign firms are not likely to be interested; and
Advantages of ICB are clearly outweighed by the administrative and
financial burden involved.
Requirement
Publication of IFB in newspapers having wide circulation in the
country;
Publication of IFB in the departmental website
Use of Bank’s standard bidding documents;
Sale of bidding documents to start only after publication of IFB in
newspapers
Bidding period 30 to 90 days from date of start of sale of bidding
documents;
Bid amount and payment in local currency; and
If foreign firms wish to participate, they shall be allowed to do so.
The agreed procedure for National Competitive Bidding (NCB) as

annex to Project Appraisal Document is as under :-
(i) Only the model bidding documents for NCB agreed with the
GOI Task Force (and as amended for time to time), shall be
used for bidding;
(ii) Invitations to bid shall be advertised in at least one widely
circulated national daily newspaper, at least 30 days prior to
the deadline for the submission of bids;
(iii) No special preference will be accorded to any bidder either for
price or for other terms and conditions when competing with
foreign bidders, state-owned enterprises, small-scale
enterprises or enterprises from any given State;
(iv) Except with the prior concurrence of the Association, there
shall be no negotiation of price with the bidders, not even with
the lowest evaluated bidder;
(v) Extension of bid validity shall not be allowed without the prior
concurrence of the Association (i) for the first request for
extension, if it is longer than eight weeks; and (ii) for all
subsequent requests for extension irrespective of the period
(such concurrence will be considered by Association only in
cases of Force Majeure and circumstances beyond the control
of the Purchaser/ Employer);
(vi) Re-bidding shall not be carried out without the prior
concurrence of the Association. The system of rejecting bids
outside a pre-determined margin or “bracket” of prices shall not
be used in the project;
(vii) Rate contracts entered into by Directorate General of Supplies
& Disposal, will not be acceptable as a substitute for NCB
procedures. Such contracts will be acceptable however, for
procurement under National Shopping procedures;
(viii) Two or three envelope systems will not be used.
Steps
Same as in ICB
2.10 Shopping
Provisions of paragraphs 3.5 of the Guidelines shall apply for

procurement under Shopping; Shopping is a procurement method
based on comparing price quotations obtained from several suppliers,
usually at least three, to assure competitive prices. It is an appropriate
method for procuring readily available off-the-shelf goods or standard
specification commodities that are small in value and are ordinarily
available from more than one source in India at competitive prices and
urgent minor civil works. Requests for quotations shall indicate the
description and quantity of the goods as well as desired delivery time and
place.
Quotations may be submitted by telex or facsimile. The evaluation of

quotations shall follow sound public or private sector practices of the
Purchaser. The terms of the accepted offer shall be incorporated in the

purchase order.
In this Project procurement under Shopping procedures includes

(a) Goods and works estimated to cost less than US$ 50,000
equivalent per contract, and
(b) Vehicles estimated to cost the equivalent of upto US$ 100,000
per contract.
Steps
Issue of requests for quotations;
Evaluation of quotations by preparation of comparative statement;
Selection of the lowest responsive offer; and
Issue of purchase order.
Note : Rate contracts of Directorate General Supplies & Disposal

(DGS&D) are acceptable as a substitute to shopping procedures. DGS&D
rate contracts are available on their website http://dgsnd.gov.in
2.11 Direct Contracting
Provisions under paragraph 3.6 of the Guidelines shall apply for

procurement under Direct Contracting. Direct contracting without
competition (single source) may be an appropriate method under the
following circumstances :-
Extension of existing contracts for Works or Goods awarded with

procedures acceptable to the Bank, justifiable on economic grounds;
Standardization of equipment or spare parts to be compatible with
existing equipment;
Proprietary equipment obtainable only from one source;
Process design requires the purchase of critical items from a
particular supplier as a condition of a performance guarantee, and
In exceptional urgent cases such as in response to natural disasters
In the Project, procurement under Direct Contract includes
Goods which are proprietary in nature and estimated to cost less

than US$ 10,000 equivalent per contract may be procured in
accordance with the provisions of paragraph 3.6 and 3.7 of
guidelines. Petty items estimated to cost less than US$ 100
equivalent per contract also may be procured in accordance with
the provisions of paragraph 3.7 of the guidelines.
Steps
Invite quotation proposal; and
Issue purchase order
2.12 Force Account
Provision under paragraphs 3.8 of the Guidelines shall apply for

procurement under Force Account. Force Account is otherwise known
as “Direct Labour”, “Departmental Forces” or “Direct Work”. Force
Account in construction by the use of borrower’s own personnel and
equipment, may be the only practical method for constructing some kinds
of works. The use of force account may be justified where;
Quantities of work involved cannot be defined in advance;

Works are small and scattered or in remote locations for which
qualified construction firms are unlikely to bid at reasonable prices;
Work is required to be carried out without disrupting ongoing
operations;
Risks of unavoidable work interruption are better borne by the
borrower than by a contractor; and
There are emergencies needing prompt attention.
In this Project procurement of small works under force account

includes
Works estimated to cost less than US$ 30,000 equivalent per contract may
be carried by force account in accordance with the provisions of paragraph
3.8. The works under the project estimated to cost US$ 10,000 or more
proposed under force account procedures would require prior approval
from the Association.
6. Misprocurement (Refer paragraph 1.12 of Guidelines)
The items of Goods & Works not procured in accordance with the agreed
provision in loan agreement between borrower and the Bank & as further
elaborated in the procurement plan, mayl be declared by Bank, as
misprocurement. The Bank does not finance such expenditure and may
cancel that portion of the loan allocated to the goods and works that have
been misprocured.
4. Important aspects for consideration in Procurement of Costly

Equipments
For procurement of costly equipments, the following points may be kept in

view:
4.1 Specifications: The specifications of the required goods/ equipment

should be clearly stated without any ambiguity, so that the prospective
bidders can send meaningful bids. In order to attract sufficient number of
bids, the specifications should be broad-based to the extent feasible. A
technical committee may be constituted to review and finalize the
specifications. Finalization of specifications should also be preferably
based on a market survey of available models and their specifications.
4.2 Warranty: Warranty and Annual Maintenance Contract (AMC) for the
duration of the life of the equipment are desirable but we have to be
careful in deciding the period for which they are to be provided.
Laboratory equipment may get obsolete with time and there is a need to
replace them. Providing a very long warranty with AMC coverage may
therefore add to the cost without being fruitfully utilized as the length of
commitment does have an effect on price. A Warranty with AMC coverage
of around 5 years (2+3 years or 3+2 years, respectively) may be preferred
to begin with. The AMC can be extended beyond this period if the
equipment remains serviceable and is to be continued. The World Bank
suggests that the Warranty period of 24/27 months should be provided,
only if it is an accepted industry standard for the equipment being
procured. Otherwise, this may result in reduced competition and increased
cost. The period should therefore, be stipulated after ascertaining the
normal industry standards. Bank Guarantee (BG) coverage for AMC
should invariably be obtained so that the supplier or his agent has
continued interest in maintaining the equipment.
4.3 Qualification Criteria: It may be desirable to buy a standard model

befitting the laid down specifications rather than equipment tailor-made for
the purpose. This is likely to give more trouble-free service, as such
equipment has stood the test of time. In the qualification criteria therefore,
we may include that the bidder or his principal should have been
manufacturing and supplying the particular equipment for say six months
or one year prior to bid opening. Qualification criteria like years of
experience and extent of sales in the past have a bearing on quality as
also on competitiveness. It is better to base them on a market survey. In
case an Indian agent is to provide substantial incidental services it may be
desirable to prescribe qualification criteria for the agent, in addition to the
qualification criteria for the manufacturer/ supplier.
4.4 Training: Training for use of critical equipment is necessary and should
form part of the incidental services. However, free training at the
manufacturers’ end if located in a foreign country, will add to the cost and
should be asked for only when it is considered essential. Otherwise non-
utilization of this provision will only mean payment of a hidden cost,
remaining unused. Further the break-up of the cost of training must be
obtained at the time of bidding itself. Also, the nature and scope of training
should be clearly defined in the bid documents.
4.5 On-site Service: Unless onsite service is provided for both warranty and
AMC, there may be problems, wherein the bidder may agree to provide
replacement of parts but the work involved with documentation, import,
customs clearance, insurance, etc. for replacement of parts may fall on the
purchaser.
4.6 Consumer Certificates: Bidders are usually required to furnish

certificates from their client/ consignee for satisfactory performance of the
equipment supplied. If complete details are not given by the bidder, the
purchaser is not able to verify. It is desirable to ask the bidder to provide
the names of contact persons and their telephone numbers with a

confirmation that the bidder has no objection to the purchaser verifying
with the users.
4.7 Bid Evaluation Committees: It is better to constitute standing bid

evaluation committees for major items of purchase, to avoid delays in
approvals for constituting such committees each time. The Committee
normally comprises of three members, i.e. one each from finance, user
and technical wings.
4.8 Indian Laws: The Bidding Document should indicate that the relevant
contract would be interpreted as per Indian Laws.
4.9 Successful Bidder: Names and addresses of the successful bidders

should be mentioned on the notice board of the Department/ Organization
or in the Bulletin and the Website.
4.10 Payment Schedule: The payment schedule should generally be: (i) ten
percent as advance, (ii) seventy percent on shipment (in case of imported
items), or proof of delivery in case of indigenous supply; and (iii) twenty
percent on final acceptance.
B. Procurement of Consulting Services
1. Methods for selection of Consultants
1.1 Quality and Cost based Selection (QCBS)
QCBS uses a competitive process for selection among short listed firms.
Provision of Section-II of the Guidelines : Selection and Employment of
Consultant’s by World Bank Borrowers – May 2004 describes in detail the
procedures for QCBS.
To be adopted where :-
(a) Selection process takes into account the quality of the proposal and
the cost of services in the selection of the successful firm.
Requirement :-
Publication of General Procurement Notice followed by specific
Request for Expression of Interest (REOI) in United Nations
Development Business online (UNDB online) and in the Development
Gateway’s dgMarket. Bank will arrange for its’ publication. The
General Procurement Notice shall be updated annually for all
outstanding procurement;
Transmission of Request for Expression of Interest (REOI) to
embassies and trade representatives of countries of likely consulting
firms and also to those who have expressed interest in response to
the General Procurement Notice;
Publication of REOI in at least one national newspaper having wide

circulation in all regions of country;
Publication of REOI in the departmental website
Use of the Bank’s standard Request for Proposal (RFP);
Steps
The Selection process shall include the following steps :-
(a) Preparation of TOR
(b) Preparation of cost estimate and the budget;
(c) Advertising;
(d) Preparation of the short list of consultants;
(e) Preparation and issuance of the RFP [which should include the
Letter of Invitation (LOI); Instructions to Consultants (ITC); the TOR
and the proposed draft contract];
(f) Receipt of proposals;
(g) Evaluation of technical proposals; consideration of quality;
(h) Public opening of financial proposals;
(i) Evaluation of financial proposal;
(j) Final evaluation of quality and cost; and
(k) Negotiations and award of contract to the selected firm.
1.2 Other methods of procurement
Provisions of paragraph 3.1 to 3.4 of the Guidelines shall apply.
To be adopted where:-
QBS is appropriate for the following type of assignments :-
(a) Complex or highly specialised assignments for which it is difficult
to define precise TOR.
(b) Assignments that have a high downstream impact
(c) Assignments that can be carried out in substantially different
ways.
Steps
(i) All the relevant provisions of Section – II (QCBS) shall apply
whenever competition is used. Advertisement for Expression of
Interest is not required when single source selection is used.
1.2.7 Selection under a Fixed Budget System (FBS) :
Provisions of paragraph 3.5 of the Guidelines shall apply
Where to be adopted
This method is appropriate only when the assignment is simple and can be
precisely defined and when the budget is fixed.
Steps
1.2.8 Least Cost Selection (LCS)
Provision of paragraph 3.6 of the guidelines shall apply.
This method is only appropriate for selecting consultants for assignments
for a standard or routine nature.
Steps
1.2.9 Selection based on the Consultant’s Qualification (CQS)
Provision of paragraph 3.7 & 3.8 of the guidelines shall apply.
This method may be used for small assignments for which the need for
preparing and evaluating competitive proposals is not justified.
Steps
Same as in QCBS except that the short listed firm with the most
appropriate qualifications and references shall be asked to submit a
combined technical and financial proposal and shall then be invited to
negotiate the contract.
1.2.10 Single Source Selection (SSS)
Provision of paragraph 3.9 to 3.13 of the guidelines shall apply.
Single Source Selection of consultants does not provide the benefits of
competition in regard to quality and cost, lacks transparency in selection,
and could encourage unacceptable practices. Therefore, Single Source
Selection shall be used only in exception cases.
Single Source Selection may be appropriate only, if it presents a clear

advantage over competition :-
(a) for tasks that represent a natural continuation of previous work
carried out by the firm.
(b) in emergency
(c) for small assignments
(d) when only one firm is qualified or has experience of exceptional
worth for the assignment.
1.2.11 Selection of Individual Consultants (SIC)
Provisions of paragraph 5.1 to 5.4 of the guidelines shall apply.

(a) the experience and qualification of the individual are the paramount
requirement.
(b) teams of personnel are not required
(c) no additional outside (home office) professional support is required.
Steps
• Individual consultants are selected on the basis of their
qualifications for the assignment
• Advertisement is not required
• Consultants do not need to submit proposals
• Consultants shall be selected through comparison of qualifications
of at least three candidates among those who have expressed
interest in the assignment or have been approached directly by the
Borrower.
• Individual consultants may be selected on a sole source basis with
due justification in exceptional cases such as
(a) continuation of previous work that the consultat had
carried out and for which the consultant was selected
competitively
(b) total expected duration less than six months
(c) emergency situations resulting from natural disasters
(d) when the individual is the only consultant qualified for the
assignment.
2. Salient features for Procurement of Consultants
2.1 General Considerations

• The need for high quality services;
• The need for economy and efficiency;
• The need to give qualified consultants from all eligible countries an
opportunity to compete in providing the services financed by the Bank;
• The Bank’s interest in encouraging the development and use of
national consultants in its developing member countries; and
• The importance of transparency in the selection process.
Steps for Hiring Consultants

• Preparation of the Terms of Reference (ToR);
• Preparation of the cost estimate and the budget;
• Advertising;
• Preparation of the shortlist of consultants;
• Preparation and issue of the Requests for Proposal (RFP);

Letter of Invitation (LoI);
Instructions to Consultants (ITC); and
Proposed Contract;
Receipt of Proposals;
Evaluation of Technical Proposals: Consideration of quality;
Evaluation of Financial Proposals;
Final Evaluation of Quality and Cost; and
Negotiations and Award of Contract to the Selected Firm.
2.3 Preparation of the Terms of Reference of the Consultant
It should include the following points:

• A precise statement of objectives;
• An outline of the tasks to be carried out;
• A schedule for completion of tasks;
• The support/ inputs provided by the client;
• The final outputs that will be required of the Consultant;
• Composition of Review Committee (not more than three members) to
monitor the Consultant’s works and procedures;
• Mid-term review and Progress Reports required from Consultant;
• Review of the final draft report;
• List of key positions whose CV (1 to 6, exceptionally 8 and
experience would be evaluated.
2.3 Cost Estimates or Budget
The cost estimates or budget should be based on the client’s assessment

of the resources needed to carry out the assignment: staff time, logistic
support, and physical inputs (for example, vehicles and laboratory
equipment). Costs shall be divided into two broad categories; (a) fee or
remuneration, and (b) reimbursable and further divided into foreign and
local costs.
2.4 Advertising (Seeking Expression of Interest) for Short-listing
The advertisement is mandatory for all consultancies valued at US$

200,000 equivalent and above in the following magazines/ bulletins/
newspaper:
• UNDB online;
• National Newspapers;
2.13 Short listing of Consultants
Borrowers are responsible for preparation of the shortlist and shall give
first consideration to those firms expressing interest, which possess the
relevant qualifications. The shortlists shall comprise six firms with a wide
geographic spread, with no more than two firms from any one country and
at least one firm from a developing country, unless qualified firms from
developing countries are not identifiable.
The shortlist can comprise entirely national consultants if the value of

assignment is less than equivalent of US $ 500, 000. However, if foreign
firms have expressed interest, they shall not be excluded from
consideration (in these cases payment can be in the country’s currency).
2.14 Other Considerations
Government-owned enterprises in the Borrower’s country may participate

only if they can establish that they:
• Are legally and financially autonomous, and
• Operate under prevalent commercial law.
No dependent agency of the Borrower or Sub-borrower of the project shall

be permitted to submit or participate in a proposal for the provision of
consulting services under the project.
2.15 Lump Sum Contracts
Lump Sum contracts are used for assignments in which the content and
the duration of the work are clearly defined. Payment is made upon
delivery of outputs. The main advantage of this type of contract is that it is
easy to administer.
Lump Sum contracts are widely used for :
a) Feasibility studies.
b) Environmental studies.
c) Detailed design of a standard structure.
2.16 Time-based Contracts
Time-based contracts are used for assignments in which it is difficult to

define the scope and the duration of the work to be performed. Payment
is based on an hourly, daily or monthly rate, plus reimbursable expenses
using actual expenses or agreed-upon unit prices. This type of contracts
provide for a maximum total payable amount that includes a contingency
for unforeseen work and duration, price adjustments, etc.
Time-based contracts are widely used for :

• Preparation of data.
• Complex studies.
• Supervision of construction.
• Training assignments.
• Advisory services.
3. Misprocurement
The Consulting Services not procured/ contracted in accordance with the

agreed provisions of Loan Agreement and approved procurement plan,
shall be declared by the Bank, as misprocurement. The Bank does not
finance such expenditure and may cancel that portion of the loan allocated
to the goods and works that have been misprocured.
Chapter – V : Detailed Procurement Procedures and Formats of International
Competitive Bidding (ICB)
Chapter V
Detailed Procurement Procedures and formats 1

Of International Competitive Bidding (ICB)
1. International Competitive Bidding (ICB) procedures prescribed in the Bank

Guidelines have the purpose of affording all eligible prospective bidding
adequate notification of borrower’s requirements and of providing all such
bidders an equal opportunity to bid on the necessary goods and works.
Provisions of section II of the Guidelines and paragraph 5 of
Appendix I there to shall apply
.
2. This Project does not envisage any ICB contracts for Civil works.
3. Eligibility Requirements: (Refer paragraphs 1.6, 1.7 and 1.8 of

Guidelines)
“1.6 To foster competition the Bank permits firms and individuals from all
eligible countries to offer goods, works, and services for Bank-
financed projects. Any conditions for participation shall be limited to
those that are essential to ensure the firm’s capability to fulfill the
contract in question.
1.7 In connection with any contract to be financed in whole or in part

from a Bank loan, the Bank does not permit a Borrower to deny pre-
or post-qualification to a firm for reasons unrelated to its capability
and resources to successfully perform the contract; nor does it
permit a Borrower to disqualify any bidder for such reasons.
Consequently, Borrowers should carry out due diligence on the
technical and financial qualifications of bidders to be assured of
their capabilities in relation to the specific contract.
1.8 As exceptions to the foregoing
(d) Firms of a country or goods manufactured in a country may

be excluded if, (i) as a matter of law or official regulation,
the Borrower’s country prohibits commercial relations with
that country, provided that the Bank is satisfied that such
exclusion does not preclude effective competition for the
supply of goods or works required, or (ii) by an act of
compliance with a decision of the United Nations Security
Council taken under Chapter VII of the Charter of the
United Nations, the Borrower’s country prohibits any import
of goods from, or payments to, a particular goods by such
an act of compliance, that firm may be excluded.
1
Bid Evaluation Standard forms enclosed as Annexure 1.
(e) A firm which has been engaged by the Borrower to provide

consulting services for the preparation or implementation of
a project, and any of its affiliates, shall be disqualified from
subsequently providing goods, works, or services resulting
from or directly related to the firm’s consulting services for
such preparation or implementation. This provision does
not apply to the various firms (consultants, contractors, or
suppliers) which together are performing the contractor’s
obligations under a turnkey or design and build contract.
(f) Government-owned enterprises in the Borrower’s country

may participate only if they can establish that they (i) are
legally and financially autonomous, (ii) operate under
commercial law, and (iii) are not dependent agencies of the
Borrower or Sub-Borrower.
(g) A firm declared ineligible by the Bank in accordance with

subparagraph (d) of paragraph 1.14 of these Guidelines
shall be ineligible to be awarded a Bank-financed contract
during the period of time determined by the Bank.”
4. Joint Ventures: (Refer paragraph 1.10 of Guidelines)
Any firm may bid independently or in joint venture confirming joint and
several liability, either with domestic firms, and/or with foreign firms, but
the Bank does not accept conditions of bidding which require mandatory
joint ventures or other forms of mandatory association between firms.
5. Notification and Advertising: (Refer paragraphs 2.7 and 2.8 of

Guidelines)
Timely notification of bidding opportunities is essential in competitive

bidding. For projects that include ICB the Borrower is required to prepare
and submit to the Bank a draft General Procurement Notice. The Bank will
arrange for its publication in UN Development Business online (UNDB
online) and in the Development Gateway’s dg Market). The Notice shall
contain information concerning the Borrower (or prospective Borrower),
amount and purpose of the loan, scope of procurement under ICB, and the
name, telephone (or fax)number, and address of the Borrower’s agency
responsible for procurement and the address of the Website where
specific procurement notices will be posted. If known, the scheduled date
for availability of pre-qualification or bidding documents should be
indicated. The related pre-qualification or bidding documents, as the case
may be, shall not be released to the public earlier than the date of
publication of the General Procurement Notice.
Invitations to pre-qualify or to bid, as the case may be, shall be advertised

as Specific Procurement Notices in at least one news paper of national
circulation in the Borrower’s country.
SPNs/IFBs shall also be transmitted to those who have expressed interest

in bidding in response to the GPN. The publication of other SPN/IFB is
also strongly encouraged to transmit such invitations to embassies and
trade representatives of countries of likely Suppliers and Contractors.
Bidding period: Notification shall be given in sufficient time to enable

prospective bidders to obtain prequalification or bidding documents and
prepare and submit their responses. Sale of the documents should start
only after publication of SPN in UNDB and national newspapers. The time
allowed for the preparation and submission of bids shall be determined
with due consideration of the particular circumstances of the Project and
the magnitude and complexity of the contract. Generally, not less than 45
days from the date of publication of the invitation for Bid in UNDB and
national newspaper or the date of making available the documents for
sale, which ever is later, shall be allowed.
6. Bidding Documents: (Refer [paragraph 2.11 to 2.43 of Guidelines)
(a) General: The bidding documents shall furnish all information

necessary for prospective bidder to prepare a bid for the goods to
be provided. While the detail and complexity of these documents
may vary with the size and nature of the proposed bid package and
contract, they generally include:
• Invitation to bid
• Instructions to bidders;
• Form of bid;
• Conditions of Contracts, both general and special;
• Specifications and drawings;
• List of good or bill of quantities;
• Delivery time or schedule of completion;
• Price schedule;
• Bid Security Form;
• Contract From;
• Performance security form;
• Advance security Form etc.
Bidding documents under Instructions to Bidders should clearly give

the basis for bid evaluation and specify the:
• Methods of evaluation, where bids are invited for a number
of items if equipment (whether evaluation would be for all the
equipment together or for each equipment separately);
• Relevant factors in addition to price which will be taken into
account and how such factors will be quantified or to
otherwise evaluated for the purpose of determining the
lowest evaluated bid;
• Conditions of acceptability and method of evaluation; if bids
based on alternative completion schedules, payment terms
are permitted
The sale/issue price of the bidding documents should be

reasonable and reflect only the cost of their printing and delivery to
prospective bidders, and shall not be so high as to discourage
qualified bidders.
(b) Standard Bidding Documents (SBDs) issued by the Bank:

should be used with minimum changes, acceptable to the Bank as
necessary to address country-and project specific issues.
Government of India in consultation with the Bank has finalized and
issued India specific Standard Bidding Documents for Goods, and
Supply, Erect and Installation contracts. Project specific changes
shall be introduced only through bid contract data sheets or through
special conditions of contact and not by introducing changes in the
standard wording of the Instructions to the Bidders, General
Conditions of Contract of the SBDs. New Delhi office (NDO) of the
Bank has formulated additional SBDs suitable for specific
procurements. Thus the bidding documents available for use in
NDO of Bank are:
(a) ICB bidding document for supply of goods and equipment;
(b) ICB bidding document for supply and installation of plant and
equipment;
(c) ICB document for procurement of equipment with
supervision of installation;
(d) ICB document for procurement of computers;
(e) ICB document for procurement of vehicles;
(f) Pre-qualification (Procurement of works including Major
Equipment and Industrial Installation).
For procurement of other specialized equipment, appropriate

modifications are to be made in the Standard Bidding Document.
Where no relevant standard bidding documents have been issued,
the Borrower shall use other internationally recognized standard
conditions of contract and contract forms acceptable to the Bank.
Guidance on critical components of the bidding document is given

in Paragraphs 2.13 to 2.43 of the Guidelines. Some of these points
with reference to goods procurement are highlighted hereunder:
(c) Validity of Bids and Bid Security (Refer paragraph 2.13 and
2.14 of Guidelines)
Bidders shall be required to submit bids valid for a period specified

in the bidding documents which shall be sufficient to enable the
Borrower to complete the comparison and evaluation of bids, review
the recommendation of award with the Bank (if required in the
Procurement Plan), and obtain all the necessary approvals so that
the contract can be awarded within that period.
(i) Expect for supply and installation contracts, bid validity

period of 90 days should be specified in the bidding
document period may reduced to 60 or 45 days in the case

of procurement of computers where there is reduction in the
rates over a period of time;
(ii) the requirement of bid security should be reviewed on a case

basis. For small value purchases and in specific cases
where bid security is not considered essential (for e.g.
vehicles it could be dispensed with. Bid security may be
required to afford the Borrower reasonable protection against
irresponsible bids, but it shall not be set so high as to
discourage bidders. It should be in the range of 2 to5
percent of the estimated cost of item put to tender. The
amount of bid security should be computed based on the
estimated cost and specified to the nearest thousands of
Rupees;
(iii) bid security shall be denominated in the currency of the bid

or another freely convertible currency (US Dollars ) or Indian
Rupees;
(iv) bid security could be in any form acceptable to the Purchaser

but Bank Guarantee should be one of the acceptable forms.
Forms acceptable should be specific in the bidding
document; Conditional Bank Guarantee are not acceptable.
Phrases such as “unless a suit is filed against us “or a case
is filed against us” may render the BG conditional.
(v) bid security should be valid for 45 days beyond the bid
validity period;
(vi) no exemption of bid security should be permitted to any

bidder or class of bidders; and
(vii) any bid not secured in accordance with the requirements of

the bidding documents shall be rejected as non-responsive.
(viii) Bid security shall be released to unsuccessful bidders once

the contract has been signed with the winning bidder.
(d) Clarity of Bidding Documents (Refer paragraph 2.16, 2.17 and

2.18 of Guideline)
(i) Bidding documents in the case of goods shall specify what

inspection and tests the purchaser requires, where and who
will conduct the tests. The purchaser shall notify the
suppliers in writing the identify of the inspection agency
retained along with the supply order;
(ii) `Bidding documents should generally avoid submission of

samples along with the bid by bidders as this requirement
discourages competition and increase the bid prices.

Alternately bidders should be requested to confirm that their
product meets with the required specifications and in support
attach appropriate test certificates from recognized testing
laboratories;
(iii) All prospective bidders shall be provided the same

information, and shall be assured of equal opportunities to
obtain additional information on a timely basis;
(iii) The bidding documents shall specify any factors, in addition

to price, which will be taken into account in evaluating bids,
and how such factors will be qualified or otherwise
evaluated.
(iv) For complex supply contracts, pre-bid meeting should be

provided and should be convened early in the bidding
process but should allow sufficient time for bidders to study
the bidding documents and prepare questions. The meeting
should be scheduled at about the middle of bidding time.
The purpose of the meeting will be to clarify issues and to
answer questions on any matter that may be raised at this
stage. Minimum post qualification criteria to be met (if a pre-
qualification procedure was not used prior to bidding), as
well as the important provisions of the biding document,
schedule of requirements, special conditions of contract and
the special features of the specifications should be explained
to the prospective bidders. Minutes of the meeting,
indicating the responses given in the meeting (including an
explanation of the query but without identifying the source of
the inquiry) should be furnished expeditiously to all those
attending the meeting (and subsequently to all purchasers of
the bidding documents) after getting the same cleared with
the Bank. Any modification of the bidding documents which
may become necessary as a result of the prebid meeting
shall be made exclusively through issue of a corrigendum
(after getting the same cleared with the Bank) and not
through the minutes of the prebid meting. Any additional
information, clarification, correction of errors, or modification
of bidding document shall be sent to each recipient of the
original bidding document in sufficient time before the
deadline for receipt of bids to enable bidders to take
appropriate actions. If necessary, the deadline shall be
extended.
(e) Price Adjustment: (Refer paragraphs 2.24 and 2.25 of the

Guidelines)
(i) Price adjustment clause should invariably be provided when

the stipulated period of completion of supply of goods is
more than 18 months.
(ii) Where the stipulated period of competition of supply of
goods is less than 18 months, normally prices quoted by the
bidder shall be fixed during the bidder’s performance of the
contract and not subject to variation on any account. In such
cases a bid submitted with an adjustable price quotation
shall be treated as non-responsive and rejected.
(iii) Where however stipulated period of completion of supply of
goods is more than 18 months, price adjustment clause
should be provided. In that case a bid submitted with a fixed
price quotation will not be rejected, but the price adjustment
would be treated as zero.
(f) Currency of Bid: (refer paragraph 2.28, 2.29 and 2.30 of

Guidelines)
Bidding document shall state the currency or currencies in which

bidders are to state their prices. The bidder shall quote the prices
in any specified currency. Further, a bidder wishes to pay in a
combination of amounts in different currencies may quote its price
accordingly, but use not more than three foreign currencies.
(g) Currency Conversion for Bid Comparison: (Refer paragraph

2.31 of Guidelines)
The Bid price is the sum of all payments in various currencies

required by the bidder. For the purpose of comparing prices, bid
prices in various currencies shall be converted to Indian Rupees at
the B.C. selling (exchange) rates for similar transactions published
by any Scheduled Bank in India as per procedure stipulated in the
bidding document. The reference date shall not be earlier than four
weeks prior to the deadline for the receipt of bids, not later than the
original date for the expiry of the period of bid validity. Generally
bid opening date is the date taken for exchange rate for currency
conversion.
(h) Currency of Payment: (Refer paragraph 2.32 and 2.33 of

Guidelines)
(i) Payment of the contract price shall be made in the currency

or currencies in which the bid price is expressed in the bid of
the successful bidder; and
(ii) when the bid price is required to be stated in the local
currency but the bidder has requested payment in foreign
currencies expressed as a percentage of the bid price, the
exchange rates to be used for purpose of payments shall be

those specified by the bidder in the bid, so as to ensure that
the value of the foreign currency portions of the bid is
maintained without any loss or gain.
(i) Performance Security: (Refer paragraph 2.39 and 2.40 of

Guidelines)
1. The need for performance security depends on the market
conditions and commercial practice for the particular kind of
goods.
2. Performance security should be obtained for the prescribed

amount (generally 5% of the contract price) and in an
acceptable form in the currency of the contract in accordance
with the conditions of contract. It should remain valid as
stipulated in the bidding document such security in an
appropriate amount shall also cover warranty obligation.
3. Failure of the successful bidder to sign the contract or furnish

performance security within the specified period shall
constitute sufficient grounds for the annulment of the award
and forfeiture of the bid security in which event the purchaser
may make the award to the next lowest evaluated bidder or
call for new bids.
(j) Liquidated Damages: (Refer paragraph 2.41 of Guidelines)
Liquidated damages not exceeding 0.5% per week of the value of

the delayed goods and services subject to a maximum of 10% of
the contract value are normally to be specified for delays in
completion of supply of goods. Once the maximum limit is reached,
the purchaser may consider for termination of the contract pursuant
to provisions of the contract.
7. Sale of Bidding Documents, Receipt and Opening of Bids: (Refer

paragraphs 2.44 and 2.45)
(a) Bidding documents should be made available for sale, to all those
who intended to participate in the bidding, for a minimum period 6
weeks. It should range from 6 to 12 weeks depending on the value
and nature of contract.
(b) Bidders should be permitted to deposit their bids on any day during
the bidding period. Receipt of bids should not be restricted to few
days or last day only. Bidders should be permitted to send their
bids either by post or hand or in person on any day during the
bidding period.
(c) Last date of receipt of bids and opening of bids should be next day,
following the close of the sale of bidding documents. If the day
happens to be holiday, the last date for receipt and opening of bids
shall be the next working day. The time of bid opening should be
the same as for the deadline for receipt of bids or promptly
thereafter (15 to 30minutes later to allow sufficient time to take the
bids to the venue announced for public bid opening). All bids
received should be opened in the presence of bidders’
representatives who choose to attend and shall sign a register
evidencing their attendance.
(d) The bidders’ names, bid modifications or withdrawals, bid prices,

discounts, and the presence or absence or absence of the requisite
bid security and such other details as considered appropriate by the
purchaser shall be announced during the opening of bids in the
meeting and recorded and a copy of this record shall be promptly
sent to the bank and all bidders who submitted bids intime. No bid
shall be rejected at the bid opening. Bid received after the time
stipulated as well as those not opened and read out at bid opening
shall not be considered.
8. Evaluation of Bids: (Refer paragraphs 2.48 to 2.54 of Guidelines)
(a) Before proceeding for evaluation, it should be ascertained whether

the bids:
• Have been properly signed;
• Are accompanied with the required securities;
• Are substantially responsive to the requirements of the bidding
documents;
• requires any clarifications and/or substantiation to determine
responsiveness; and
• Are otherwise generally in order.
If a bid is not substantially responsive, that is, it contains material

deviations from or reservations to the terms, conditions and
specifications in the bidding documents, it should not be considered
further. The bidder must not be permitted to correct or withdraw
material deviations or reservations once bids have been opened.
(b) The purchaser may waive any minor informality or nonconformity or

irregularity in a bid, which does not constitute a material deviation,
provided such waiver does not prejudice or affect the relative
ranking of any bidder. In those cases for the purpose of evaluation,
adjustments should be made for the costs to the purchaser of any
quantifiable non-material deviations or reservations. The evaluation
will exclude and not take into account any allowance for price
adjustment during the period of execution of the contract.
(c) A substantially responsive bid is one which confirms to all the terms
and conditions of bidding document without material deviation. The
determination of bid’ responsiveness is to be based on the contents
of the bid itself without recourse to extrinsic evidence. Deviations
from or objections or reservations to critical provisions such as
those concerning Bid Security under ITB Clause, Applicable Law,
and Taxes and duties under GCC Clauses will deem to be a
material deviation. In addition, Deemed Export Benefit under ITB
Clause, Performance Security, Warranty, Force Majeure under
GCC Clauses are also to be treated as critical provisions for the
above purpose.-(Clause references are of SBD Goods).
(d) Bidder should not be requested or permitted to alter their bid after
the deadline for receipt of bids. The purchaser shall ask bidders for
clarification needed to evaluate the bids but shall not ask or permit
bidders to change the substance or price of their bids after the bid
opening. Requests for clarifications and the bidders’ responses
shall be made in writing.
(e) No preferential treatment should be given to any bidder or class of

bidders either for price or for conditions unless specifically cleared
with the Bank.
(f) Any procedure under which bids above or below a pre-determined

assessment of bid values are automatically disqualified is not
acceptable.
(g) The evaluation of a bid will exclude and not take into account:
• In case of goods manufactured in India or goods of foreign
origin already located in India., sales and other similar taxes
which will be payable on the goods if contract is awarded to
the bidder;
• in case of goods of foreign origin offered from aboard, custom
duties and other similar import taxes which will be payable on
the goods if the contract is awarded to the bidder; and
• any allowance for price adjustment during the period of
execution of the contract if provided in the bid.
(h) The comparison shall be EXW price of the goods offered from
within India, such price to include all costs as well as duties and
taxes paid or payable on components and raw material
incorporated or to be incorporated in the goods, and the CIF or CIP
price of the goods offered from outside India.
(i) Evaluation of the bids should take into account, in addition to the
bid price and the price of incidental services, the following factors in
a manner and to extent specified in the bidding documents:
• Costs of inland transportation, insurance and other costs
within India incidental to delivery of the goods to their final
destination:
• delivery schedule offered in the bid;

• cost of components, mandatory spare parts and service;
• the availability in India of spare parts and after sales service
of the equipment offered;
• Projected operating and maintenance costs during life of the
equipment;
• Performance and productivity of the equipment offered; and
• Other specific criteria indicated in the Bidding Data.
(j) Bids should be loaded appropriately as per bidding documents for

any deviations from the specified requirements.
(k) Bonus or additional credits for bid evaluation should not be given for
offered features that exceed the required standards or
specifications i.e. additional horse power or capacity unless there is
a specific provision for this in the bidding document.
(l) Bids often omit a particular component or options or accessories or

an minor attachment (i.e. tool kit or spare wheel in a vehicle). If a
item offered for supply is otherwise functional and if the omissions
are minor and these parts can be procured separately, the bid may
be loaded for parts not included in the scope of supply and
evaluated. In other cases the bids should be treated as non-
responsive.
(m) Bidders offering goods from within India must ascertain themselves
availability of deemed export benefits, which they have considered
in their offer and purchaser will not compensate the bidder in case
of failure to receive such benefits for any reason, whatsoever. Any
such duties & taxes additionally payable during the performance of
the contract will be to the bidder account and no separate claims on
this behalf shall be entertained by the purchaser. Where the bidder
has quoted taking into account the Deemed export benefits, he
must provide all information required for issue of Project Authority
Certificate in terms of the Import Export Policy along with his bid.
This certificate will be issued on this basis only and no subsequent
change will be permitted. Where the purchaser issues such
certificate, Excise Duty will not be reimbursed separately.
Such a provision should be made in the bidding documents and

bids of bidder who do not accept this provision should be declared
non-responsive and rejected.
(n) All substantially responsive bids should be evaluated in detail as

per procedure stipulated in the bidding documents.
(o) Discounts if any offered along with the bid itself or before the last
date and time for the receipt of bids shall be taken into account for
evaluation. Discounts if any offered after the last date and time for
the receipt of bids shall not be taken into account for evaluation.
However if the bidder who has offered the discount after the last
date and time for receipt of bids happens to be the lowest evaluated
bid (without the discount being taken into consideration), the
discount could be availed of at the time of award of contract and
placement of supply order.
(p) Domestic Preference
Preference for Domestically Manufactured Goods
1. Bidding documents shall clearly indicate preference to be

granted to domestic manufactured goods and the information
required to establish the eligibility of a bid for such
preference. The nationality of the manufacturer or Supplier is
not a condition for such eligibility. The methods and stages
set forth hereunder shall be followed in the evaluation and
comparison of bids.
2. For comparison, responsive bids shall be classified in one of

the following three groups:
(a) Group A : Bids exclusively offering goods manufactured

in the country of the Borrower if the bidder establishes
to the satisfaction of the Borrower and the Bank that (i)
labor, raw material, and components from within the
country of the Borrower will account for 30 percent or
more of the EXW price of the product offered, and (ii)
the production facility in which those goods will be
manufactured or assembled has been engaged in
manufacturing/assembling such goods at least since the
time of bid submission.
(b) Group B : all other bids offering goods manufactured in
the country of the Borrower.
(c) Group C : bids offering goods manufactured abroad that
have been already imported or that will be directly
imported.
3. The price quoted for goods in bids of Groups A and B shall

include all duties and taxes paid or payable on the basic
materials or components purchased in the domestic market
or imported, but shall exclude the sales and similar taxes on
the finished product. The price quoted for goods in bids of
Group C shall be on CIP (place of destination), which is
exclusive of customs duties and other import taxes already
paid or to be paid.
4. In the first step, all evaluated bids in each group shall be

compared to determine the lowest bid in each group. Such
lowest evaluated bids shall be compared with each other and
if, as a result of this comparison, a bid from Group A or
Group B is the lowest, it shall be selected for the award.
5. If as a result of the comparison under paragraph four above,

the lowest evaluated bid is a bid from Group C, the lowest
evaluated bid from Group C shall be further compared with
the lowest evaluated bid from Group A after adding to the
evaluated price of goods offered in the bid from Group C, for
the purpose of this further comparison only, an amount equal
to 15 percent of the CIP bid price. The lowest evaluated bid
determined from this last comparison shall be selected.
9. Single Bids:
Where only one bid is received, efforts should be made to ascertain the
reason. If it is determined that publicity was not adequate, bid
specification or any of terms were restrictive or unclear, bid should be
cancelled and invited afresh after amending the specifications/terms.
If however, it is determined that bid specifications are not restrictive and

the prices quoted are reasonable and bid is technically and commercially
responsive, the single bid should be considered for award.
10. Post qualification of Bidders: (Refer paragraph 2.58 of Guidelines)
If bidders have not been pre-qualified, the Purchaser shall determine

whether the bidder whose bid has been determined to offer the lowest
evaluated cost meets the minimum qualification criteria set out in the
bidding document in the same name and style. If the selected bidder does
not meet them, the bid shall be rejected. In such an event, the Purchaser
shall make a similar determination for the next lowest evaluated bidder,
the process continued if necessary.
11. Rejection of all Bids: (Refer paragraphs 2.61 to 2.64 of Guidelines)
Regardless of value, if all bids are proposed to be rejected and bid are to
re-invited, the Bank’s should be consulted before such action. Bank does
not favour negotiations even with the lowest evaluated responsive
bidder.
12 Extension of validity of Bids: (Refer paragraph 2.57 of Guidelines)
Purchaser shall complete evaluation of bids and award of contract within

the initial period of bid validity so that extensions are not necessary. An
extension of bid validity, if justified by exceptional circumstances, shall be
requested in writing from all bidders before the expiration date. The
extension for the minimum period required to complete the evaluation,
obtain the necessary approvals, and award the contract. In the case of
fixed price contracts, requests for second and subsequent extension will
be permissible only if the request for extension provides for an appropriate
adjustment mechanism of the quoted price to reflect changes in the cost of
inputs for the contract over the period of extension. Whenever an

extension of bid validity period is requested, bidders shall not be requested
or be permitted to change the quoted (base) price or other conditions of
their bid. Bidders shall have the right to refuse to grant such an extension.
If the bidding documents require a bid security, bidders may exercise their
right to refuse to grant such an extension without forfeiting their bid
security, but those who are willing to extend the validity of their bid shall be
required to provide a suitable extension of bid security.
Borrower should seek the Bank’s prior approval for the first request for
extension, if it is longer than four weeks, and for all subsequent requests
for extensions, irrespective of the period.
13 Award of Contract: (Refer paragraph 2.59 of Guidelines)
(i) The purchaser shall award the contract, within the period of validity
of bids, to the bidder whose bid has been determined to be
substantially responsive to the bidding documents and who has
offered the lowest evaluated bid price provided further that the
bidder is determined to perform the contract satisfactorily and
meets the specified qualification criteria.
(ii) A bidder shall not be required, as a condition of award, to undertake
responsibilities for work not stipulated in the bidding documents or
otherwise or modify the bid as originally submitted.
14 Publication of the Award of contract : (Refer paragraph 2.60 of

Guidelines)
Within two weeks of receiving the Bank’s “no objection” to the

recommendation of contract award, the Borrower shall publish in UNDB
online and in dg Market the results identifying the bid and lot numbers and
the following information: (a) name of each bidder who submitted a bid; (b)
bid prices as read out at bid opening; (c) name and evaluated prices of
each bid that was evaluated; (d) name of bidders whose bids were
rejected and the reasons for their rejection; and (e) name of the winning
bidder, and the price it offered, as well as the duration and summary scope
of the contract awarded.
Any unsuccessful bidder, after Notification of Award, may request

borrower for explanation of grounds for not qualifying it’s bid.
Chapter – VI : Detailed Procurement Procedures and Formats - National Competitive
Bidding (NCB)
CHAPTER VI
Detailed Procurement Procedures and formats2

National Competitive Bidding (NCB)
1. National Competitive Bidding (NCB) is the competitive bidding

procedure normally used for public procurement in the country of the
Borrower, and may be the most efficient and economical way of procuring
goods or works which, by their nature or scope are unlikely to attract
foreign competition. Provisions of Section III, Para 3.3 and 3.4 of the
Guidelines shall apply.
2. Eligibility Requirements: (Refer paragraphs 1.6, 1.7 and 1.8 of

Guidelines)
Same as in ICB procedure.
4. Joint Ventures: (Refer paragraph 1.10 of Guidelines)
Same as in ICB procedure
5. Notification and Advertising: (Refer paragraph 2.7 and 2.8 Guidelines)
Notification of General Procurement Notice (GPN): Publication of a

General Procurement Notice is not required for NCB.
Notification of Specific Procurement Notice (SPN) or Invitation for Bid

(IFB): SPN/IFB shall be advertised in at least one national newspaper and
in the official website having wide coverage in all the parts of the country.
Bidding period: Notification shall be given in sufficient time to enable

prospective bidders to obtain bidding documents and prepare and submit
their responses. Sale of the documents should start only after publication
of SPN/IFB in national newspapers. The time allowed for the preparation
and submission of bids shall be determined with due consideration of the
particular circumstances of the project and magnitude and complexity of
the contract. Generally, not less than 30 days from the date of publication
of the invitation for the Bid in national newspaper or the date of making
available the documents for sale, which ever is later shall be allowed.
6. Bidding Documents: (Refer paragraphs 2.11 to 2.43 of Guidelines)
(a) General: The Bidding documents shall furnish all information to

prepare a bid for the goods or works to be provided. While the
detail and complexity of these documents may vary with the size
and nature of the proposed bid package and contract, they
generally include:
2
Standard forms enclosed as Annexure – 2.
Chapter – VI : Detailed Procurement Procedures and Formats - National
Competitive Bidding (NCB)
• Invitation to bid
• Instructions to bidders
• Form of bid
• Conditions of Contract, both general and special
• Specifications and drawings
• List of goods or bill of quantities
• Delivery time or schedule of completion
• Price schedule
• Bid security form
• Contract form
• Performance security form
• Advance security form etc.
Bidding documents under Instructions to Bidders should clearly give

the basis for bid evaluation and specify the:
• methods of evaluation, when bids are invited for a number of

items of equipment (whether evaluation would be for all the
equipment together or for each equipment separately);
• relevant factors in addition to price which will be taken into
account and how such factors will be qualified or otherwise
evaluated for the purpose of determining the lowest evaluated
bid;
• conditions of acceptability and method of evaluation, if bids
based on alternative completion schedules, payment terms are
permitted; and
Notwithstanding registration requirements of the state; bids should

be invited from all eligible bidders as defined under paras 1.6 to 1.8
of Guidelines. Foreign firms should not be precluded from
completing. Explicit post qualifications criteria for physical outturn
and financial turnover should be clearly set out in case of civil works
(sample attached –Annexure - 2).
The sale/issue price of the bidding documents should be

reasonable and reflect only the cost of their printing and delivery to
prospective bidders shall not be high as to discourage qualified
bidders.
(b) Model Bidding documents (MBDs) issued by the Bank should

be used with minimum changes, acceptable to the Bank as
necessary to address project specific issues. Government of India
in consultation with the Bank has finalized and issued India specific
issues. Government of India in consultation with the Bank has
finalized and issued India specific Model Bidding Documents for
Works, and Goods, contracts; Project specific changes shall be
introduced only through bid for contract data sheets or through
special conditions of contract and not introducing changes in the
standard wordings of the instructions to the Bidders, General
Conditions of Contract of the MBDs. New Delhi office of the Bank
has formulated the additional MBDs suitable for specific
procurements. Thus the bidding documents available for use in
NDO of Bank are:
(a) NCB bidding document for supply of Goods and equipment.

(b) NCB bidding document for Civil Works costing less than the
equivalent of US$100,000;
(c) NCB bidding document for Civil Works costing more than
equivalent of US$100,000;
(d) Prequalification (Procurement of Works);
(e) NCB bidding document for supply of computers; and
(f) NCB bidding document for supply of vehicles.
For procurement of other specialized equipment, appropriate

modifications are to be made in the Model Bidding Document for
Goods.
Guidance on critical components of the bidding documents is given

in Paragraphs 2.13 to 2.43 of the Guidelines. Some of these points
with reference to goods and works procurement are highlighted
hereunder:
(c) Validity of Bids and Bid Security (Refer paragraphs 2.13 and
2.14 of Guidelines);
(i) Bid validity period of 90 days should be specified in the

bidding documents. It may be reduced to 60 or 45 days in
case of procurement of computers where there is high
fluctuation in the rates;
(ii) The requirement of bid security in respect of goods should

be reviewed on a case by case basis. For small value
purchases and in specific cases where bid security is not
considered essential (for e.g. vehicles) it could be dispensed
with. Bid security may be required to afford the Borrower
reasonable protection against irresponsible bids, but it shall
not be set so high as to discourage bidders. It should be in
the range of 2 to 5 percent of the estimated cost of item put
to tender. Bid security should normally be about 2% of the
cost of civil work put to tender, but could range between
1%for large contracts and 3% for small contracts. The
amount of bid security should be computed based on
estimated cost and specified to the nearest thousands of
rupees; it should be fixed amount and not specified as a
percentage.
(iii) Bid security could be in any forms acceptable to the

purchaser but Bank Guarantee should be one of the
acceptable forms. Forms acceptable should be specified in
the bidding document; Conditional Bank Guarantees are not
acceptable. Phrases such as “unless a suit is filed against
us” or “a case is filed against us” may render the BG
conditional.
(iv) Bid security should be valid for 45 days beyond the bid
validity period;
(v) No exemption of bid security should be permitted to any

bidder or class of bidders; and
(vi) Any bid not secured in accordance with the requirements of

the bidding documents shall be rejected as non-responsive.
(d) Clarity of Bidding Documents (Refer paragraphs 2.16 to 2.18 of

Guidelines)
(i) Bidding documents in the case of goods shall specify

what inspection and tests the purchaser requires, where
and who will conduct the tests.
(ii) Bidding documents should generally avoid submission of

samples along with the bid by bidders as this requirements
discourages competition and increases the bid prices.
Alternately bidders should be requested to confirm that their
product meets with the required specifications and in support
attach appropriate test certificates from recognized testing
laboratories;
(iii) All prospective bidder shall be provided the same information

and shall be assured of equal opportunities to obtain additional
information on a timely basis;
(iv) For large contracts, pre-bid meeting should be provided and

should be convened early in the bidding process, but should
allow sufficient time for bidders to study the bidding documents
and prepare questions. The meeting should be scheduled at
about the middle of bidding time. The purpose of the meeting
will be to clarify issues and to answer questions on any matter
that may be raised at this stage. Minimum post qualification
criteria to be met (if a pre-qualification procedure was not used
prior or bidding), as well as the important provisions of the
bidding document, schedule of requirements, special
conditions of contract and the special features of the
specifications should be explained to the prospective bidders.
Minutes of the meeting, indicating the responses given in the
meeting (including an explanation of the query but without
identifying the source of the enquiry) should be furnished
expeditiously to all those attending the meeting (and
subsequently to all purchasers of the biding documents).
Suggested format for preparation of the minutes of pre-bid
meeting is attached. (Annexure - 2) Any modification of the
bidding documents, which may become necessary as a result
of the pre-bid meeting shall be made exclusively through issue
of a corrigendum and not through the minutes of the pre-bid
meeting. Any additional information, clarification, correction of
errors, or modification of bidding document shall be sent to
each recipient of the original bidding documents in sufficient
time before the dead line for receipt of bids to enable bidders
to take appropriate actions. If necessary, the deadline shall be
extended.
(e) Price Adjustment: (Refer paragraphs 2.24 and 2.25 of the

Guidelines)
(i) Price adjustment clause should invariably be provided when

the stipulated period of completion of works or supply of
goods is more than 18 months.
(ii) Where the stipulated period of completion works or supply of

goods is less than 18 months normally prices quoted by the
bidder shall be fixed during the bidder’s performance of the
contract and not subjected to variation on any account. In
such cases a bid submitted with an adjustable price
quotation shall be treated as non-responsive and rejected.
(iii) Where, however, stipulated period of completion of supply of

goods is more than 18 months, price adjustment clause
should be provided. In that case a bid submitted with a fixed
price quotation will not be rejected, but price adjustment
would be treated as zero.
(f) Currency of Bid and Currency of payment: (Refer paragraphs

2.29. 2.30, 2.32 and 2.33 of Guidelines)
The currency of the bid and currency of payment should be

India Rupees with no obligations to convert to any other
currency.
(g) Supply of materials by Department

:
Contractors of civil works should be made responsible, as far as
possible for all materials (including cement and steel) and
equipment without having to rely on departmental supplies. With
the exception of explosives if a Borrower insist on supply of certain
construction materials, Bank will consider this a reserved
procurement and the estimated cost of the materials thus supplied
will be excluded from the total project costs to determine the
amount Bank will finance.
(h) Schedule of Quantities:
Detailed design, engineering, all investigations (including soil

investigations) and land acquisition for the work should be
completed before invitation of bids. Based on these, Bill of
quantities and specifications should be properly prepared and
checked. Schedule of quantities for each slice and package should
be incorporated separately in bidding document. For goods and
equipment minimum functional specifications to ensure
procurement of proper equipment should be finalized before
invitation of bid.
Bill of quantities should have a separate schedule for those general

items, which are not covered in analysis of rates adopted for
estimation.
(i) Performance Security: (Refer paragraphs 2.39 and 2.40 of

Guidelines)
1. The need for performance security depends on the market

conditions and commercial practice for the particular kind of
goods.
2. Performance security should be obtained for the prescribed

amount and in an acceptable from in the currency of the
contract in accordance with the conditions of contract. It
should remain valid as stipulated in the bidding document.
Additional security should be taken to cover the risks of
unbalanced bids in case of civil works.
3. Failure of the successful bidder to sign the contract or furnish

performance security with in the specified period shall
constitute sufficient grounds for the annulment of the award
and forfeiture of the bid security in which event the
employer/purchaser may make the award to the next lowest
evaluated bidder or call for new bids.
(j) Liquidated damages: (Refer paragraph 2.41 of Guidelines)
Liquidated damages not exceeding 0.5% per week (for goods) and
0.05% per day (civil works) of the value of the delayed goods,
services or works subject to a maximum of 10% of the contract
value are normally to be specified for delays in completion of works
or supply of goods. Once the maximum limit is reached, the
purchaser may consider for termination of the contract pursuant to
provisions in the contract.
(k) Mobilization Advances:
Provision of mobilization advance for the labour and equipment

should be incorporated in all civil works contracts. However the
Bank will have no objection if this provision is deleted in case of civil
works estimated to cost less than US$100,000 equivalent.
(l) Schedule of Rates:
Schedule of rates, which forms the basis for preparation of civil

works estimates, should be updated regularly taking into account
realistic data based on construction methodology to be used,
specifications to be followed, current market rates for materials and
labour and reasonable contractor’s profit.
7. Sale of Bidding Documents, Receipts and Opening of Bids: (Refer

paragraphs 2.44 and 2.45)
(a) Bidding documents should be made available for sale, to all those
who intended to participate in the bidding, for minimum period of 30
days. It should range from 30 to 90 days depending on the value
and nature of contract;
(b) Bidders should be permitted to deposit their bids on any day during
the bidding period. Receipt of bids should not be restricted to few
days or last day only. Bidders should be permitted to send their
bids either by post or hand over in person on any day during the
bidding period.
(c) Last date of receipt of bids and opening of bids should be the next
day, following the close of sale of bidding documents. If that day
happens to be a holiday, the last date for receipt and opening of
bids shall be the next d\working day. The time of bid opening
should be the same as for the deadline for receipt of bids or
promptly thereafter (15 to 30 minutes later to allow sufficient time to
take the bids to venue announced for public bid opening). All bids
received should be opened in the presence of bidder’s
representatives who choose to attend and shall sign a register
evidencing their attendance.
(d) The bidder’s names, bid modifications or withdrawals, bid prices,

discounts, and the presence or absence of the requisite bid security
and such other details as considered appropriate by the Purchaser
shall be announced during the opening of bids in the meeting. The
minutes of bid opening shall be prepared. Suggested format for
preparation of the minutes of bid opening is attached. (Annexure -
2) No bid shall be rejected at the bid opening except for late bids,
which shall be returned unopened to the Bidder.
(e) Bids and modification that are not opened and read out at the bids
opening shall not be considered further for evaluation, irrespective
of the circumstances. Withdrawn bids should be returned
unopened to the bidders.
(f) Two or three envelope system is un-acceptable.
8. Evaluation of Bids: (Refer paragraphs 2.48 to 2.54 of Guidelines)
(a) Before proceeding for evaluation, should be ascertained whether

the bids:
• Meet the eligibility requirements specified in paragraph 1.6 to
1.8 of Guidelines;
• have been properly signed;
• are accompanied by the required securities;
• are substantially responsive to the requirements of the bidding
documents;
• require any clarification and/or substantiation to determine
responsiveness; and
• are otherwise generally in order.
If a bid is not substantially responsive, that is, it contains material

deviations from or reservations to the terms, conditions and
specifications in the bidding documents, it should not be considered
further. The bidder must not be permitted to correct or withdraw
material deviations or reservations once bids have been opened.
(b) The Employer/Purchaser may waive any minor informality or

nonconformity or irregularity in a bid, which does not constitute a
material deviation, provided such waiver does not prejudice or
affect the relative ranking of any bidder. In those cases for the
purpose of evaluation, adjustments should be made for the costs to
the Purchaser of any quantifiable non-material deviations or
reservations. The evaluation will exclude and not take into account
any allowance for price adjustment during the period of execution of
the contract.
(c) A substantially responsive bid is one which conforms to all the

terms and conditions and specifications of the bidding document
without material deviations or reservations. The determination of a
bid's responsiveness is to be based on the contents of the bid itself
without recourse to extrinsic evidence. In respect of goods
deviations from or objections or reservations to critical provisions
such as those concerning Bid Security under ITB Clause,
Applicable Law, and Taxes and Duties under GCC Clauses will be
deemed to be material deviations in addition, Deemed Export
Benefits under ITB Clause, Performance Security, Warranty, Force
Majeure under GCC Clauses are also to be treated as critical
provisions for the above purpose.-[Clause references are of SBD
Goods]. In respect of works, a material deviation of reservation is
one (i) which affects in any substantial way, the scope, quality or
performance of the works; (ii) which limits in any substantial way,
inconsistent with the bidding documents, the Employer's rights or
the bidder's obligations under the contract; or (iii) whose rectification
would affect unfairly the competitive position of other bidders
presenting substantially responsive bids.
(d) Bidders should not be requested or permitted to alter their bid after
the deadline for receipt of bids. The Employer/Purchaser shall ask
bidders for clarifications needed to evaluate the bids but shall not
ask or permit bidders to change the substance or price of their bids
after the bid opening. Requests for clarification and the bidders'
responses shall be made in writing.
(e) No preferential treatment should be given to any bidder or class of

bidders either for price or for conditions unless specifically cleared
with the Bank.
(f) Any procedure under which bids above or below a pre-determined

assessment of bid values are automatically disqualified, is not
acceptable.
(g) In case of civil works all substantially responsive bids should be

evaluated in detail as per procedure stipulated in the bidding
documents. The evaluation will exclude and not take into account
any allowance for price adjustment during the period of execution of
the contract. Suggested format for preparation of the bid evaluation
report for civil works is attached (Annexure - 2).
(h) In case of Goods comparison of bids shall be ex-factory/ ex-

warehouse/ off-the-shelf price of good, such price to include all
costs as well as duties and taxes paid or payable on components
and raw materials incorporated in the goods.
(i) Evaluation of bids shall include Excise duty but shall exclude and
not take into account sales and other similar taxes which will be
payable on the goods.
(j) Evaluation of the bids should take into account, in addition to the
bid price and the price of incidental services, the following factors in
a manner and to the extent specified in the bidding documents:
• Cost of inland transportation, insurance and other costs within

India incidental to delivery of the goods to their final destination;
• delivery schedule offered in the bid;
• cost of components, mandatory spare parts and service;
• the availability in India of spare parts and after sales service for
the equipment offered; .
• projected operating and maintenance costs during life of the

equipment; .
• performance and productivity of the equipment offered; and
• other specific criteria indicated in Bidding Data Sheet.
(k) Bids should be loaded appropriately as per bidding documents for

any deviations with reference to the requirements;
(l) Bonus or additional credits for bid evaluation should not be given for
offered features that exceed the required standards or
specifications i.e. additional horse power or capacity unless there is
a specific provision for this in the bidding document;
(m) Bids often omit a particular component or options or accessories or

a minor attachment (i.e. tool kit or spare wheel in a vehicle). If the
item offered for supply is otherwise functional and if the omissions
are minor and these parts can be procured separately, the bid may
be loaded for parts not included in the scope of supply and
evaluated. In other cases the bids should be treated as non-
responsive;
(n) All substantially responsive bids should be evaluated in detail as

per procedure stipulated in the bidding documents.
(o) Discounts if any offered along with the bid itself or offered before
the last date and time for the; receipt of the bids shall be taken into
account for evaluation. Discounts if any offered after the last date
and time for receipt of the bids shall not be taken into account for
evaluation. However, the bidder who has offered the discount after
the last date and time for receipt of bids happens to .; be the lowest
evaluated bid (without the discount being taken into consideration),
the discount could be availed of at the time of award of contract and
placement of supply order.
9. Post-qualification of Bidders: (Refer paragraph 2.58 of Guidelines)
If bidders have not been pre-qualified, the Employer/Purchaser shall

determine whether the bidder whose bid has been determined to offer the
lowest evaluated cost meets the minimum qualification criteria set out in
the bidding document in the same name and style. If the selected bidder
does not meet them, the bid shall be rejected. In such an event, the
Employer/Purchaser shall make a similar determination for the next lowest
evaluated bidder; the process continued if necessary.
Suggested format for the preparation of the bid evaluation report for goods
is attached (Annexure 2).
10. Single Bids:
Where only one bid is received, efforts should be made to ascertain the
reasons. if it is determined that publicity was not adequate, bid
specifications or any of terms were restrictive or unclear, the bid should be
cancelled and invited afresh after amending the specifications/terms.
If however, it is determined that bid specifications/conditions are not

restrictive or unclear, that publicity was adequate; and the prices quoted
are reasonable and bid is technically and commercially responsive, the
single bid should be considered for award.
11. Rejection of all Bids (Refer paragraphs 2.61 to 2.63 of Guidelines)
Regardless of value, if all bids are proposed to be rejected and bids are to
be reinvited, the Bank should be consulted before such action. Suggested
format for seeking Bank's clearance is attached. (Annexure 2) Bank does
not favour negotiations even with the lowest evaluated bidder.
In the case of civil works, the system of rejecting bids outside a pre-
determined margin or "bracket" of prices should not be used without prior
clearance with the Bank.
Rejection of bids due to submission of collusive (unreasonably high) prices

will attract provisions of para 1.15 of Guidelines. In such cases bidders
must be requested to furnish breakdown of unit rates in terms of Clause
25.1 of ITB (NCB Works) providing justification for higher bid prices. If the
justification, after review, is determined rational, contract should be
awarded to the lowest evaluated responsive bidder. If not, these bidders
must be declared as ineligible from bidding in the re-bid for that contract as
specified in Clause 4.8 of ITB (NCB works).
12. Extension of validity of Bids (Refer paragraph 2.57 of Guidelines)
Employer/Purchaser shall complete evaluation of bids and award of

contract within the initial period of bid validity so that extensions are not
necessary. An extension of bid validity, if justified by exceptional
circumstances, shall be requested in writing from all bidders before the
expiration date. The extension shall be for the minimum period required
completing the evaluation, obtaining the necessary approvals, and
awarding the contract. In the case of fixed price contracts, requests for
second and subsequent extensions will be permissible only if the request
for extension provides for an appropriate adjustment mechanism of the
quoted price to reflect changes in the cost of inputs for the contract over
the period of extension. Such an increase in the bid price shall not be
taken into account in the bid evaluation. Whenever an extension of bid
validity period is requested, bidders shall not be requested or be permitted
to change the quoted (base) price or other conditions of their bid. Bidders
shall have the right to refuse' to grant such an extension without forfeiting
their bid security, but those who are willing to extend the validity of their
bid shall be required to provide a suitable extension of bid security. If there
is undue delay in awarding the contract, Bank may consider declaring the
same as misprocurement.
Extension of bid validity shall not be allowed without the prior concurrence
of the Bank (i) for the first request for extension if it is longer than eight
weeks; and (ii) for all subsequent requests for extension irrespective of the
period (such concurrence will be considered by Bank only in cases of
Force Majeure and circumstances beyond the control of the Purchaser /
Employer);
13. Award of Contract: (Refer paragraph 2.59 of Guidelines)
(i) The Employer/Purchaser shall award the contract, within the period
of validity of bids, to the bidder whose bid has been determined to
be substantially responsive to the bidding documents and who has
offered the lowest evaluated bid price provided further that the
bidder is determined to perform the contract satisfactorily and
meets the specified qualification criteria.
(ii) A bidder shall not be required, as a condition of award, to undertake

responsibilities for work not stipulated in the bidding documents or
otherwise to modify the bid as originally submitted.
14. Procurement of Items borne on DGS&D Rate Contracts:
Rate contracts entered into by DGS&D are not acceptable as substitute for
NCB procedures. Such contracts will however, be acceptable for
procurement under national shopping procedures. (Rate contracts of State
Governments, Super Bazar, Janatha Bazar are not acceptable even under
national shopping, but they can be considered as one quotation).
NCB conditions of contract, for procurement of goods covered by the

DGS&D rate contracts beyond the threshold for national shopping should
be as close to the terms and conditions of rate contracts as possible,
particularly with reference to specifications, delivery, inspection, warranty,
bid and performance security, cost of bidding document, payment terms,
liquidated damages, procedure for settlement of disputes etc., so that rate
contract suppliers can confirm their rate contract price and give discounts
if any, without having to take exception to the provisions of the bidding
document.
Important Points To Be Noted in the World Bank-Financed Contracts
1. Principal criteria followed in the World Bank procurement procedures are

transparency, economy and efficiency, opportunity to all eligible bidders
from all countries, and encouraging development of domestic contracting
and manufacturing industries.
2. Bank approved model bidding documents for procurement of Works and

Equipment (ICB/NCB) should be used fixing appropriate qualification &
evaluation criteria and ensuring filling of all blanks.
3. Detailed design and engineering, including soil investigation, acquisition of

land for works and preparation of technical specification for equipment, to
be completed before invitations of bids.
4. Bank will normally not finance additional floors in existing buildings.

However as an exception, where the initial design of a building
contemplated additional floors, which were not built due to budgetary
constraints and the ITL is fully satisfied of the design, then only the World
Bank will agree for financing those additional floors under the credit/loan.
5. Schedule of rates (based on which estimates are prepared) should be

updated regularly taking into account realistic data based on the
construction methodology to be used, current market prices for materials
and labour, and reasonable contractor’s profit.
6. Bill of Quantities should have a separate schedule for those general items,
which are not covered in analysis of rates adopted for estimation.
7. (a) Bid Security:
A fixed amount usually 2 to 5% for Goods and 1 to 3% for works [For

small value purchases and in some specific cases, where bid security
is considered not essential, for example in vehicles it could be
dispensed with] [a system of self declaration by bidders under which a
winning bidder who does not sign the contract becomes ineligible for
bidding for a specified period is provided in the new Guidelines as
acceptable alternative].
(b) Performance Security:
Works Goods
5% of contract price 5 to 10% of contract price
(c) Retention Money:

Works Goods
5% of contract price NIL
(50% to be retained till completion
of the whole of the works and 50%
to be retained till the end of defects
liability period)
(Bank guarantees submitted by bidders/contractors/suppliers should be

unconditional and be in the specified formats. Bid and performance
securities of Joint Ventures should be in the name of all partners in the
Joint Ventures submitting the bid).
8. Samples
Bidding documents should generally avoid submission of samples along

with bids by bidders as this requirement discourages competition and
increases the bid prices. Alternatively bidders should be requested to
confirm that their product meets with the required specifications and in
support attach appropriate test certificates from recognized testing
laboratories.
9. No filtration in the sale of bidding document. It should be sold and made

available by mail as well, to all whosoever pays the required fee and
requests for it.
10. Where Bidders are not pre-qualified, minimum post-qualification criteria

should be clearly specified in the bidding document and enforced.
11. Contractors should be made responsible to provide all materials including

Cement and Steel etc.
12. Minimum bidding period for NCB- 30 days and ICB- 45 days (from the date
of Publication of IFB in press /UNDB or the date the documents are made
ready for sale, whichever is later).
13. Bidding documents should be made available for sale till a day prior to the
last date of receipt of bids. The time for the public bid opening should be
the same for the deadline for receipt of bids or promptly thereafter (to
allow only sufficient time to take the bids to the place announced for public
bid opening).
Bidders could submit their bids either by post or in person on any day
during the bidding period. Bids should be received only at one place and
should be kept in safe custody till the stipulated time of opening.
14. Publicity of Bid Notices

NCB
UNDB online and dgMarket --
publication
Copies to bidders who have Copies to bidders who have
expressed interest in response to expressed interest
the General Procurement Notice
Publicity in the national press having Publicity in the national press
a wide circulation in all regions of having a wide circulation in
the country the country
For large, specialized or important --
contracts, publicity in well known
technical magazines, newspapers
and trade publications of wide
international circulation
15. No preference to any bidders or class of bidders, either for price or for
other items and conditions.
16. Two or three envelope system is un-acceptable.
17. All bids received should be opened and read out at the time of bid
opening, which should be immediately after the deadline for submission of
bids. No bids should be rejected at bid opening except for late bids, which
should be returned unopened to the Bidder. Minutes of Bid opening must
be prepared and one copy forwarded to the World Bank through the
Project Implementation Unit, National Agricultural Innovation Project
(NAIP) for information.
18. No negotiations.
19. Evaluation of bids should be made strictly in terms of the provisions and
criteria disclosed in the bidding document.
20. Single bids should also be considered for award if it is determined that
publicity was adequate, bid specifications/conditions were not restrictive or
unclear and bid prices are considered reasonable.
21. Award should be in favour of the lowest evaluated responsive bidder, who
is determined to be qualified to perform the contract satisfactorily.
22. Evaluation and award decision of bids including the World Bank review
should be completed within the initial period of bid validity. An extension of
bid validity, if justified by exceptional circumstances shall be requested in
writing from all bidders (of valid bids only) before the expiration date. The
extension shall be for the minimum period required to complete evaluation,
obtaining necessary approvals and award of contract. In the case of fixed
price contracts the bid validity period may be extended a second time only
if the bidding documents or the request for extension shall provide for
appropriate adjustment of the bid price to reflect changes in the cost of
inputs for the contract over the period of extension. Such an increase in
the bid price shall not be taken into account in the bid evaluation. In the
case of prior review contracts, the Bank’s prior approval will be required for
(1) a first extension of the validity period if the period of extension exceeds
eight (8) weeks; and any subsequent extension of the bid validity period.
If there is an undue delay in awarding the contract. The Bank may

consider declaring the same as mis-procurement.
23. For works valued Rupees ten million and above the construction
method(s)/ Program and quality control details submitted by the bidders in
response to Clause 4.3 (k) of ITB (W2) should be examined for
acceptability before finalizing the award recommendations; this should be
attached to the contract agreement for facilitating monitoring during
implementation.
24. The system of rejecting bids outside a predetermined margin or bracket of

prices will not be used. Rejection of all bids, irrespective of value, should
be referred to the World Bank through PIU, NAIP for review and issue of
no objection [Rejection is permitted only if the lowest bid is much higher
than available budget resources.] Format for seeking no objection of Bank
provided separately.
25. Rejection of bids due to submission of collusive (unreasonably high) prices

will attract provisions of Para 1.15 of Procurement Guidelines. In such
cases bidders must be requested to furnish breakdown of unit rates in
terms of clause 25.1 of ITB (NCB works) providing justification for higher
bid prices. If this justification, after review, is determined rational, the
contract should be awarded to the lowest evaluated responsive bidder. If
not, these bidders must be declared as ineligible in the rebid for that
contract as specified in clause 4.8 of ITB (NCB works).
26. In the case of civil works splitting in award of contracts shall not be carried
out. When two or more bidders quote the same lowest price, an
investigation should be made to determine any evidence of collusion,
following which:
i) if collusion is determined, the parties involved should be disqualified

and the award should then be made to the next lowest evaluated
and qualified bidder; and
ii) if no evidence of collusion can be confirmed, then fresh bids should
be invited after receiving the concurrence of the World Bank
through PIU-NAIP.
27. Under ICB/NCB bids should not be invited on the basis of bidders quoting
a percentage premium or discount over the estimated cost of the
Employer.
28. During execution of contracts, all material modification or waiver of the

terms and conditions of contract or material extension of stipulated time or
change order which would increase the contract cost by over 15% should
be reported to the World Bank.
29. Repeat order system is not permissible.
30. In all contracts for works (civil as well as supply/erection), the

adjudicator/technical expert or Dispute Review Board should be in position
constituted immediately on signing of the Contract Agreement.
31. Results of award should be published in Development Business and

Gateway for ICB/LIB and Direct Contracting.
32. Review of Contracts by the World Bank
Prior Review:
It consists of review of:

• Procurement plan
• Invitation for bid;
• Bidding documents;
• Minutes of the pre-bid conference;
• Bid evaluation report (suggested format included in the detailed
Guidelines); and
• Final contract(s) with checklists (format of checklist included in the
detailed Guidelines)
Thresholds limit for prior review by Bank are as under:
1. For Works – US $ 200,000 and above.

2. For Goods and Equipment - US $ 1 million and above in each case
3. Force account : >US$ 10,000 and ≤ US$ 30,000.
Post Review:
Review of final concluded Contract(s) with checklist and supporting

documents for all other cases.
Chapter – VII : Detailed Procurement Procedures and Formats- Shopping
CHAPTER VII
Detailed Procurement Procedures and formats3 –Shopping
Provisions of paragraphs 3.5 of the Guidelines shall apply for procurement

under Shopping.
1. Shopping is a procurement method based on comparing price quotations

obtained from several Suppliers, usually at least three, to assure
competitive prices. It is an appropriate method for procuring readily
available off-the-shelf goods or standard specification commodities that
are small in value and are ordinarily available from more than one source
in India at competitive prices. Requests for quotations could be either from
a list of recognized and proven Suppliers or by advertisement in a local
newspaper. The requests should indicate the description and quantity of
the goods, brief specifications as well as desired delivery, time and place.
Method of evaluation, for each item separately or for a group of items
should be specified. Bid security is not stipulated. Suggested format for
invitation of quotations is attached (Annexure 3).
2. Quotations shall be opened after the stipulated time and date of

submission of the quotations. Comparative statement is prepared. The
evaluation of the quotations shall follow sound public or private sector
practices of the Purchaser. Evaluation should be done as per stipulations
in the letter of invitation of quotations. Award should be made to the lowest
bidder whose bid is considered substantially responsive.
3. The terms of the accepted offer shall be incorporated in a purchase order.

Suggested format of Supply order is attached. (Annexure 3).
4. Rate contracts entered into by DGS&D are acceptable as a substitute

for national shopping. In such cases direct order can be placed (by all
Direct Demanding officers) on the Manufacturer on the DGS&D Format as
per the stipulated terms and conditions. In case the Purchaser is not a
Direct Demanding officer and the value of procurement is small, direct
order could be placed on the Agent/Dealer at the current DGS&D rates,
after suitable verification.
5. Rate contracts of state governments, Janatha Bazar, Super Bazar are

not acceptable as a substitute for national shopping procedures, but
they can be considered as one quotation.
Note: Most of the state governments/central agencies have stipulation that the
field implementing agencies should procure material either from State
Industries Corporations or Super Bazar. Such a stipulation is not
acceptable to the Bank. This is already agreed with the Borrower.
Project Implementation Unit should seek necessary exemption from
3
Formats enclosed as Annexure 3.
Chapter – VII : Detailed Procurement Procedures and Formats- Shopping
competent authorities at the initial stage of the project itself and convey the
same to the implementing agencies. Procurement made contrary to
agreed procedures would not be eligible for financing under the
credit and amount claimed and disbursed for such procurement
would be adjusted from future applications.
1. Quantity ordered should not vary more than that indicated in the invitation
of quotations. In case of additional demand, fresh quotations should be
invited. Repeat orders are not acceptable.
2. The procedure for procurement of works through shopping is also similar

to procurement of goods by obtaining price quotations, from atleast three
established contractors for that work.
Chapter – VIII : Detailed Procurement Procedures and Formats – Direct Contracting (DC)
CHAPTER VIII
Detailed Procurement Procedures and formats Direct Contracting (DC)

_______________________________________________________________
Provisions under paragraph 3.6 and 3.7 of the Guidelines shall apply for
procurement under Direct Contracting:
1. In respect of books and periodicals, direct order could be placed with the
publisher at the published rate list. Discounts as given by the publisher
himself (for example in book Exhibitions) could be availed of. However if it
is intended to procure the books or periodicals through an agent or dealer,
quotations as per national shopping procedures should be invited
requesting for the competitive discounts which the agents would offer on
the published rate list of books and periodicals, prepare comparative
statement and place order with the lowest offer.
2. Designing, preparation of extension and publicity material (for example

poster design, preparation of publicity material, slogans, street shows,
demonstration etc. are works of art and are not amendable to competition.
Hence such contracts should be awarded on direct contracting after
obtaining an offer from the selected artist. However printing of the
extension and publicity material in required quantities and making copies
of the posters etc. are simple works and should be procured through
national shopping procedures after obtaining quotations or through N CB
procedures depending on the estimated value of the contract.
3. Procurement of software from the developer himself or from an authorized

reseller will come under the category of Direct Contracting. However if it is
intended to procure the original and Authorized Version of software
through an agent or dealer, national shopping procedures or NCB
procedures depending on the estimated value of the contract, should be
followed. Bank strongly recommends procurement of software from the
developer or authorized reseller to avoid possible piracy.
4. Procurement of an item of equipment of a particular brand is erroneously

treated as proprietary equipment. This is not correct. Proprietary
equipment is one, which is obtainable from one source only. It is very
difficult to certify such procurement. Hence it would be advisable to
procure such equipment through national shopping by specifying the
minimum functional specifications. However spares for equipment already
available with the purchaser (if such spares are not available in the market
at competitive prices and further the procurement of such spares from the
market would bring down the efficiency of the equipment) could be
procured on direct contracting basis.
5. Topographical maps and aerial photography maps from Survey of India

could be procured on a direct contracting basis.
Chapter – VIII : Detailed Procurement Procedures and Formats – Direct Contracting (DC)
6. Satellite imageries are presently prepared and sold only by National

Institute of Remote Agency and ISRO. Such imageries could be procured
on direct contracting basis.
7. Rainfall and climatological data could be procured on direct contracting

basis from India meteorological Department. Such similar data could also
be procured directly from the custodians of such data.
8. Proper record of the direct contracting procurement should be kept and the
stipulated ceilings in the Legal Agreement adhered to.
Chapter –IX :Detailed Procurement procedures and formats – Force Account(FA)
CHAPTER IX
Detailed Procurement Procedures and formats Force Account (FA)
Provisions under paragraphs 3.8 of the Guidelines and paragraph 4, Part B,

Section II of Schedule 2 of the Project Agreement shall apply:
1. Procurement of small works:
Works estimated to cost less than $30,000 equivalent per contract might
be procured either:
(i) Under lumpsum, fixed-price contracts awarded on the basis of

quotations obtained from three qualified domestic contractors in
response to a written invitation. The invitation shall include a
detailed description of the works, including basic specifications, the
required completion date, a basic form of agreement acceptable to
the Bank, and relevant drawings, where applicable. The award shall
be made to the contractor who offers the lowest price quotation for
the required work, and who has the experience and resources to
complete the contract successfully; A suggested format
(ii) The works under the project estimated to cost US$ 10,000 or more
proposed under force account procedures will require prior approval
from the World Bank.
Chapter – X : Procurement procedures and formats for Selection of Consultants
Chapter – X
Procurement procedures and formats4 for Selection of Consultants
1. MAIN CONSIDERATIONS IN SELECTION OF CONSULTANTS
Bank policy on the selection of consultants is guided by the following

principles:
high quality of services;

economy and efficiency;
competition among qualified consultants from all eligible countries;
participation of national consultants; and
transparency.
2. ELIGIBILITY
Eligibility is a generic term defining the authorization to compete for a

Bank-funded project. Only consultants who are registered or
incorporated in Bank member countries, and individuals who are
nationals of such countries, are eligible to compete for Bank-financed
consulting contracts.
Consultants from Bank member countries may still be excluded from

participating in Bank-financed projects in the following circumstances
(see para. 1.11 (a) of the Consultant Guidelines):
The Borrower’s country’s laws prohibit commercial relations with
the consultant’s country, and the Bank is satisfied that the exclusion
does not preclude effective competition.
The Borrower’s country has adopted a decision of the U.N. Security
Council imposing economic sanctions against the consultant’s
country.
The Bank has declared the consultant ineligible to participate in
Bank-financed projects because of fraudulent or corrupt practices
on the part of the consultant.
3. ASSOCIATION BETWEEN CONSULTANTS
Consultants may associate with each other in the form of a joint venture
or of a sub-consultancy agreement to complement their respective areas
of expertise, strengthen the technical responsiveness of their proposals
and make available bigger pools of experts, provide better approaches
and methodologies, and, in some cases, to offer lower prices. Such an
association may be for the long term (independent of any particular
assignment) or for a specific assignment. If the Borrower employs an
association in the form of a joint venture, the association should appoint
one of the firms to represent the association; all members of the joint
4
Evaluation report forms enclosed as Annexure 4.
venture shall sign the contract and shall be jointly and severally liable for
the entire assignment. Once the short list is finalized, and Requests for
Proposals (RFP) are issued, any association in the form of joint venture
or sub-consultancy among short-listed firms shall be permissible only
with the approval of the Borrower. Borrowers shall not require
consultants to form associations with any specific firm or group of firms,
but may encourage association with qualified national firms.
4. SELECTION OF CONSULTANT
The method of selection of consultant would normally be Quality and

Cost Based Selection (QCBS), which has been described in detail in this
chapter.
The selection process should be fair and transparent and normally all
requests calling for Expression of Interest should be advertised in at
least one National Newspaper. Simultaneously, the copy of
advertisement and other relevant details essential for bidders to
submit ‘ Expression of Interest’ may be posted on the departmental
website, reference of that should be available in the advertisement
in the newspaper. For contracts estimated to cost more than US$
500,000, a copy of request for Expression of Interest (EOI) shall be
advertised in UNDB online and dg/Market shall also be sent to local
offices of various High Commissions/Embassies in India. The low value
contracts where cost of advertising out weighs the benefits likely to
accrue due to open competition can be through a pre-determined
shortlist of consultants.
5. METHOD FOR SELECTION OF CONSULTANT
5.1 Quality And Cost-Based Selection (Qcbs) [Refer Section Ii Of Guide

Lines]
The Selection Process: {refer paragraph 2.1 and 2.2 of Guidelines)
QCBS uses a competitive process among short-listed firms arrived at

against response to request for “Expression of Interest”. This Selection
process takes into account the quality of the proposal and the cost of the
services in the selection of the successful firm. Cost as a factor of
selection shall be used judiciously. The relative weight to be given to the
quality and cost shall be determined for each case depending on the
nature of the assignment
The selection process shall include the following steps:

(a) preparation of Terms of Reference (TOR);
(b) preparation of cost estimate and the budget;
(c) advertising;
(d) preparation of the short list of consultants;
(e) preparation and issuance of the Request for Proposals (RFP);
(i) Letter of Invitation (LOI);
(ii) Information to consultants (ITC);
(iii) TOR and proposed draft contract;

(f) receipt of proposals;
(g) evaluation of technical proposals: consideration of quality;
(h) public opening of financial proposals;
(i) evaluation of financial proposal;
(j) final evaluation of quality and cost; and
(k) negotiations, and award of the contract to the selected firm.
5.1.1 Terms of Reference (TOR) {refer paragraph 2.3 of Guidelines)
The Employer shall be responsible for preparing the TOR for the
assignment. TOR shall be prepared by person(s) or a firm specialized in
the area of the assignment. The scope of the services described in the
TOR shall be compatible with the available budget. TOR shall define
clearly the objectives, goals, and scope of the assignment and provide
background information (including a list of existing relevant studies and
basic data) to facilitate the consultants’ preparation of their proposals. If
transfer of knowledge or training is an objective, it should be specifically
outlined along with details of number of staff to be trained, and so forth,
to enable consultants to estimate the required resources. TOR shall list
the services and surveys necessary to carry out the assignment and the
expected outputs (for example, reports, data, maps, surveys). However,
TOR should not be too detailed and inflexible, so that competing
consultants may propose their own methodology and staffing. Firms
shall be encouraged to comment on the TOR in their proposals. The
Employer’s and consultants’ respective responsibilities should be clearly
defined in the TOR.
5.1.2 Cost Estimate (Budget) {refer paragraph 2.4 of Guidelines)
Preparation of a well-thought-through cost estimate is essential if

realistic budgetary resources are to be earmarked. The cost estimate
shall be based on the Employer’s assessment of the resources needed
to carry out the assignment: staff time, logistical support, and physical
inputs (for example, vehicles, laboratory equipment). Costs shall be
divided into two broad categories: (a) fee or remuneration (according to
the type of contract used) and (b) reimbursable, and further divided into
foreign and local costs. The cost of staff time shall be estimated on a
realistic basis for foreign and national personnel as applicable in
respective cases.
5.1.3 Advertising {refer paragraph 2.5 of Guidelines)
For all projects the Borrower is required to prepare and submit to the
Bank a draft General Procurement Notice. The Bank will arrange for its
publication in US Development Business only (UNDB online) and in the
Development Gateway’s dgMarket. To obtain expressions of interest,
the Borrower shall include a list of expected consulting assignments in
the General Procurement Notice, and shall advertise a request for
expressions of interest for each contract for consulting firms in the
national gazette or a national newspaper or in an electronic portal of free

access. In addition, contracts expected to cost more than US$ 200,000
shall be advertised in UNDB online and in dgMarket. The information
requested shall be the minimum required to make a judgement on the
firm’s suitability and not be so complex as to discourage consultants
from expressing interest. Not less than 14 days from the date of posting
on UNDB online shall be provided for responses.
5.1.4 Short List of Consultants (refer paragraph 2.6 to 2.8 of Guidelines)
The Borrower is responsible for preparation of the short list. The

Borrower shall give first consideration to these firms expressing interest
that possess the relevant qualifications. Short lists shall comprise six
firms with a wide geographic spread, with no more than two firms from
any one country and atleast one firm from a developing country unless
qualified firms from developing countries are not identified. The Bank
may agree to shortlist comprising a smaller number of firms in special
circumstances, for example, when only a few qualified firms have
expressed interest for the specific assignment or when the size of the
contract does not justify wider competition. For the purpose of
establishing the short list, the nationality of a firm is that of the country in
which it is registered or incorporated and in the case of Joint Venture,
the nationality of the firm appointed to represent the Joint Venture. The
Bank may agree with the Borrower to expand or reduce a short list,
however, once the Bank has issued a “no objection” to a short list, the
Borrower shall not add or delete names without the Bank’s approval.
The short list may comprise entirely national consultants (firms

registered or incorporated in the country), if the assignment is below
US$ 500,000. However, if foreign firms express interest. They shall be
considered.
5.1.5 Preparation and Issuance of the Request for Proposals (RFP) {refer
paragraph 2.9 of Guidelines)
The RFP shall include (a) a Letter of Invitation, (b) Information to

Consultants, (c) the TOR, and (d) the proposed draft contract. Employer
shall use the applicable standard RFPs issued by the Bank with minimal
changes acceptable to the Bank as necessary to address project-
specific issues. Any such changes shall be introduced only through the
RFP data sheet. Employer shall list all the documents included in the
RFP. The Employer may use an electronic system to distribute the RFP.
If the RFP is distributed electronically, the electronic system shall be
secure to avoid modifications to the RFP and shall not restrict the
access of short listed consultants to the RFP.
5.1.6 Letter of Invitation (LOI) {refer paragraph 2.10 of Guidelines)
The LOI shall state the intention of the Employer to enter into a contract
for the provision of consulting services, the details of the client and the
date, time, and address for submission of proposals.
5.1.7 Information to Consultants (ITC) {refer paragraph 2.11 of

Guidelines)
The ITC shall contain all necessary information that would help
consultants prepare responsive proposals, and shall bring as much
transparency as possible to the selection procedure by providing
information on the evaluation process and by indicating the evaluation
criteria and factors and their respective weights and the minimum
passing quality score. The ITC shall not indicate the budget (since cost
is a selection criterion), but shall indicate the expected input of key
professionals (staff time). Consultants, however, shall be free to prepare
their own estimates of staff time necessary to carry out the assignment.
The ITC shall specify the proposal validity period (normally 60-90 days).
5.1.8 Contract {refer paragraph 2.12 of Guidelines)
The Employers shall use the appropriate Standard Form of Contract

with minimum changes, as necessary to address any specific project
issues. Any such changes shall be introduced only through Contract
Data Sheets or through Special Conditions of Contract and not by
introducing changes in the wording of the General Conditions of
Contract included in the Standard Form. When these forms are not
appropriate for the services being contracted, Employer shall use other
contract forms, acceptable to the Bank, depending on the requirement of
the project.
5.1.9 Receipt of Proposals {refer paragraph 2.13 of Guidelines)
The Employer should allow enough time for the consultants to prepare
their proposals. The time allowed shall depend on the assignment, but
normally shall not be less than four weeks and more than three months.
During this interval, the firms may request clarifications about the
information provided in the RFP. The Employer shall provide these
clarifications in writing and copy them to all firms on the short list (who
intend to submit proposals). If necessary, the Employer shall extend the
deadline for submission of proposals. The technical and financial
proposals shall be submitted at the same time. No amendments to the
technical or financial proposal shall be accepted after the deadline. To
safeguard the integrity of the process, the technical and financial
proposals shall be submitted in separate sealed envelopes. The
technical envelopes shall be opened publicly immediately after closing
of receipt of technical bids by a committee of officials drawn from the
relevant departments (technical, finance, personnel etc., as considered
appropriate), after the closing time for submission of proposals. The
financial proposals shall remain sealed and shall be kept in safe custody
until they are opened publicly. Any proposal received after the closing
time for submission of proposals shall be returned unopened. In all
cases of large value or complex assignments, pre-bid conference

may be prescribed in the RFP. The time, which normally should be
after 15 to 30 days of issue of RFP, should be specified in the RFP
itself. During this meeting, the scope of assignment,
responsibilities of either parties and other details should be clearly
explained to the prospective consultant so that there is no
ambiguity later on at the time of submission of technical/financial
bids. Where some significant changes are made in the terms/scope
of RFP as a result of pre bid meeting or otherwise considered
necessary by the Employer, a formal Corrigendum to RFP may be
issued, to all shortlisted consultants. In such cases, it should be
ensured that after issue of Corrigendum, reasonable time (not less
than 15 days) is available to the consultants to prepare/submit their
proposal. If required, the time for preparation & submission of
proposal may be extended, suitably.
5.1.10 Evaluation of Proposals: Consideration of Quality and Cost {refer

paragraph 2.14 of Guidelines)
The evaluation of the proposals shall be carried out in two stages: first
the quality, and then the cost. Evaluators of technical proposals shall not
have access to the financial proposals until the technical evaluation,
including any Bank reviews and no objections, is concluded. Financial
proposals shall be opened only thereafter. The evaluation shall be
carried out in full conformity with the provisions of the RFP.
5.1.10.1 Evaluation of the Quality {refer paragraph 2.15 to 2.19 of

Guidelines)
The Employer shall evaluate each technical proposal (using an

evaluation committee of three or more specialists in the sector), taking
into account several criteria:
(a) the consultant’s relevant experience for the assignment,
(b) the quality of the methodology proposed,
(c) the qualifications of the key staff proposed,
(d) transfer of knowledge, and
(e) the extent of participation by Nationals among key staff in the
performance of the assignment. Each criterion shall be allotted
marks so as to make total maximum technical score as 100. The
criteria and weightage to each criteria or sub-criteria would
depend on the requirements of each case and may be fixed
objectively.
The Employer shall normally divide these criteria into subcriteria. For
example, subcriteria under methodology might be innovation and level
of detail. However, the number of subcriteria should be kept to the
minimum that is considered essential. The weight given to experience
can be relatively modest, since this criterion has already been taken into
account when short-listing the consultant. More weight shall be given to
the methodology in the case of more complex assignments (for
example, multidisciplinary feasibility or management studies).
Evaluation of only the key personnel is recommended. Since key

personnel ultimately determine the quality of performance, more weight
shall be assigned to this criterion if the proposed assignment is complex.
The Employer shall review the qualifications and experience of
proposed key personnel in their curricula vitae, which must be accurate,
complete, and signed by an authorized official of the consultant and the
individual proposed. When the assignment depends critically on the
performance of key staff, such as a Project Manager in a large team of
specified individuals, it may be desirable to conduct interviews. The
individuals shall be rated in the following three sub criteria, as relevant
to the task:
(a) general qualifications: General education and training, length of
experience, positions held etc.
(b) adequacy for the assignment: education, training, and
experience in the specific sector, field, subject, and so forth,
relevant to the particular assignment; and
(c) experience in the region: knowledge of the local language,
culture, administrative system, government organization, and so
forth.
Employer shall evaluate each proposal on the basis of its

responsiveness to the TOR. A proposal shall be considered unsuitable
and shall be rejected at this stage if it does not respond to important
aspects of the TOR or it fails to achieve a minimum technical score
specified in the RFP.
At the end of the process, the Employer shall prepare a technical

evaluation report of the “quality” of the proposals and in case of
contracts subject to prior review, submit it to the Bank for its review and
“No objections”. The report shall substantiate the results of the
evaluation and describe the relative strengths and weaknesses of the
proposals. All records relating to the evaluation, such as individual mark
sheets, shall be retained until completion of the project and its audit.
5.1.10.2 Evaluation of Cost {refer paragraph 2.20 to 2.22 of Guidelines)
After the evaluation of quality is completed, and the Bank has issued its
no objection (if this is prior-review case) the Employer shall inform the
consultants who have submitted proposals the technical points assigned
to each consultant shall notify those consultants whose proposals did
not meet the minimum qualifying mark or were considered non-
responsive to the RFP and/or TOR, indicating that their financial
proposals will be returned unopened after completing the selection
process. The Employer shall simultaneously notify the consultants that
have secured the minimum qualifying mark, and indicate the date and
time set for opening the financial proposals. In such a case, the opening
date shall not be sooner than two weeks after the notification date. The
financial proposals shall be opened publicly in the presence of
representatives of the technically qualified consultants who choose to

attend. The name of the consultant, the quality scores, and the
proposed prices shall be read aloud and recorded when the financial
proposals are opened, The Employer shall prepare the minutes of the
public opening and copy of this record shall be sent to all consultants
who submitted proposals.
The Employer shall then review the financial proposals. If there are any
arithmetical errors, they shall be corrected. For the purpose of
comparing proposals, the costs shall be converted to a single currency
preferably Indian Rupees., as stated in the RFP. The Employer shall
make this conversion by using the BC selling exchange rates for those
currencies as per exchange rate quoted by an official source e.g. State
Bank of India. The RFP shall specify the source of the exchange rate to
be used and the date of exchange rate, provided that the date shall not
be earlier than four weeks prior to the deadline for submission of
proposals, nor later than the original date of expiration of the period of
validity of the proposal.
For the purpose of evaluation, “cost” shall exclude Local identifiable

indirect taxes on the contract and income tax payable on the
remuneration of services rendered by non-resident staff of the
Consultant. The cost shall include all consultant’s remuneration and
other reimbursable expenses, such as travel, translation, report printing,
or secretarial expenses. The proposal with the lowest cost may be given
a financial score of 100 and other proposals given financial scores that
are inversely proportional to their prices. Alternatively, other
methodology as considered appropriate might be used in allocating the
marks for the cost. The methodology should however be described in
the RFP.
5.1.10.3 Combined Quality and Cost Evaluation (refer paragraph 2.23 of

Guidelines)
The total score shall be obtained by weighing the quality and cost
scores and adding them. As an illustration, in a case where technical
score weightage is 80% and cost weightage is 20%, a firm scoring 80%
marks in technical score and 70% marks in financial score, the total
weighted score would be 80x0.8+70x0.2=78%. The weight for the “cost”
shall be chosen, taking into account the complexity of the assignment
and the relative importance of quality. The proposed weightages for
quality and cost shall be specified in the RFP. The firm obtaining the
highest total weighted score shall be invited for negotiations.
5.1.11 Rejection of All Proposals, and re –invitation (refer paragraph 2.30

of Guidelines)
The Borrower shall be justified in rejecting all proposals only if all

proposals are non-responsive because they present major deficiencies
in complying with the TOR or if they involve costs substantially higher
than the original estimate. In the latter case, the feasibility of increasing
the budget, or scaling down the scope of services with the firm should
be investigated in consultation with the Bank. Before all the proposals
are rejected and new proposals are invited, the Borrower shall notify the
Bank, indicating the reasons for rejection of all proposals, and shall
obtain the Bank’s “no objection” before proceeding with the rejection and
the new process. The new process may include revising the RFP
(including the short list) and the budget. These revisions shall be
agreed upon with the Bank.
5.1.12 Negotiations and Award of Contract (refer paragraph 2.24 to 2.27 of

Guidelines)
Negotiations shall include discussions of the TOR, the methodology,

staffing, Employer inputs, and special conditions of the contract. These
discussions shall not substantially alter the original TOR or the terms of
the contract, lest the quality of the final product, its cost, and the
relevance of the initial evaluation be affected. Major reductions in work
inputs should not be made solely to meet the budget. The final TOR and
the agreed methodology shall be incorporated in “Description of
Services,” which shall form part of the contract.
The selected firm should not be allowed to substitute key staff, unless
both parties agree that undue delay in the selection process makes such
substitution unavoidable or that such changes are critical to meet the
objectives of the assignment. If this is not the case and if it is
established that key staff were offered in the proposal without confirming
their availability, the firm may be disqualified and the process continued
with the next ranked firm. The key staff proposed for substitution shall
have qualifications equal to or better than the key staff initially proposed.
Financial negotiations shall include clarification of the consultants’ tax

liability in India (if any) and how this tax liability has been or would be
reflected in the contract. As Lumb-Sum Contracts payments are based
on delivery of outputs (or products), the offered price shall include all
costs (staff time, overhead, travel, hotel, etc.).
Consequently, if the selection method for a Lump-sum contract included

price as a component, this price shall not be negotiated. In the case of
Time-based Contracts, payment is based on inputs (staff time and
reimbursables) and the offered price shall include staff rates and an
estimation of the amount of reimbursables. When the selection method
includes price as a component, negotiations of staff rates should not
take place, except in special circumstances, like for example, staff rates
offered are much higher than typically charges rates by consultants for
similar contract. Consequently, the prohibition of negotiation does not
preclude the right of the client to ask for clarifications, and, if fee are
very high, to ask for change of fees, after due consultation with the
Bank. Reimbursables are to be paid on actual expenses incurred at
cost upon presentation of receipts and therefore are not subject to
negotiations. However, if the client was to define ceilings for unit prices
of certain reimbursables (like travel or hotel rates), they should indicate
the maximum levels of those rates in the RFP or define as per diem in
the RFP.
If the negotiations fail to result in an acceptable contract, the Barrower

shall terminate the negotiations and invite the next ranked firm for
negotiations. The borrower shall consult with the Bank prior to taking
this step. The consultant shall be informed of the reasons for
terminations of negotiations. Once the negotiations commenced with
the next ranked firm, the borrower shall not re-open the earlier
negotiations. After the negotiations are successfully completed and the
bank has issued ‘No Objection’ to the initialed negotiated contract, the
Borrower shall promptly notify other firms on the short list that they were
unsuccessful.
5.1.13 PUBLICATION OF THE AWARD OF CONTRACT (Refer paragraph

2.28 of Guidelines)
After the award of contract, the borrower shall publish in UNDB online
and in dgMarket the following information :-
a) the names of all consultants who submitted proposals;
b) the technical points assigned to each consultant;
c) the evaluated price of each consultant;
d) the final point ranking of the consultants;
e) the name of the winning consultant and the price, duration, and
summary scope of the contract. The same information shall be
sent to all consultants who have submitted proposals.
Any consultant whose proposal was not selected, may request the
Borrower for explanation of grounds for not qualifying his proposals.
5.1.14 Confidentiality (Refer paragraph 2.31 of Guidelines)
Information relating to evaluation of proposals and recommendations

concerning awards shall not be disclosed to the consultants who
submitted the proposals or to other persons not officially concerned with
the process, until the award of contract is notified to the successful firm,
except as provided in paragraph 2.20 and 2.27.
5.2 Other Methods of Selection
General
This section describes the selection methods other than QCBS and the
circumstances under which they are acceptable. All other relevant
provisions of Section II (QCBS) shall apply whenever competition is
used
5.2.1 Quality Based Selection (QBS) (refer paragraph 3.2 to 3.4 of

Guidelines)
QBS is appropriate for the following types of assignments :-
(c) complex or highly specialised assignments for which it is difficult

to define precise TOR and the required input from the
consultants, and for which the client expects the consultants to
demonstrate innovation in their proposals (for example, country
economic or sector studies, multisectoral feasibility studies,
design of a hazardous waste remediation plant or of an urban
master plan, financial sector reforms).
(d) Assignments that have a high downstream impact and in which

the objective is to have the best experts (for example, feasibility
and structural engineering design of such major infrastructure as
large dams, policy studies of national significance, management
studies of large government agencies); and
(e) Assignments that can be carred out in substantially different

ways, such that proposals will not be comparable (for example,
management advice, and sector and policy studies in which the
value of the services depends on the quality of the analysis).
In QBS, the RFP may request submission of a technical proposal only

(without the financial proposal), or request submission of both technical
and financial proposals at the same time, but in separate envelopes
(two-envelope system). The RFP shall provide either the estimated
budget or the estimated number of key staff time, specifying that this
information is given as an indication only and that consultants shall be
free to propose their own estimates.
If technical proposals alone were invited, after evaluating the technical

proposals using the same methodology as in QCBS, the Borrower shall
ask the consultant with the highest ranked technical proposal to submit
a detailed financial proposal. The Borrower and the consultant shall
then negotiate the financial proposal and the contract. All other aspects
of the selection process shall be identical to those of QCBS, including
the publication of the Award of Contract as described in paragraph 2.28
except that only the price of the winning firm is published. If consultants
were requested to provide financial proposals initially together with the
technical proposal, safeguards shall be built in as in QCBS to ensure
that the price proposal of only the selected firm is opened and the rest
returned unopened after the negotiations are successfully concluded.
5.2.2 Selection under a Fixed Budget (FBS) (refer paragraph 3.5 of

Guidelines)
This method is appropriate only when the assignment is simple and can
be precisely defined and when the budget is fixed. The RFP shall
indicate the available budget and request the consultants to provide
their best technical and financial proposals in separate envelopes, within
the budget. TOR should be particularly well prepared to make sure that
the budget is sufficient for the consultants to perform the expected
tasks. Evaluation of all technical proposals shall be carried out first as in
the QCBS method. Then the price proposals shall be opened in public
and prices shall be read out aloud. Proposals that exceed the indicated
budget shall be rejected. The Consultant who has submitted the highest
ranked technical proposal among the rest shall be selected and invited
to negotiate a contract. The publication of the Award of contract shall be
as described in paragraph 2.28.
5.2.3 Least-Cost Selection (LCS) (refer paragraph 3.6 of Guidelines)
This method is only appropriate for selecting consultants for

assignments of a standard or routine nature (audits, engineering design
of non-complex works, and so forth) where well-established practices
and standards exist. Under this method, a “minimum” qualifying mark
for the “quality” is established. Proposals, to be submitted in two
envelopes, are invited from a short list. Technical proposals are opened
first and evaluated. Those securing less than the minimum qualifying
mark are rejected, and the financial proposals of the rest are opened in
public. The firm with the lowest prices shall then be selected and the
publication of the Award of contract shall be as described in paragraph
2.28. Under this method, the minimum qualifying mark shall be
established understanding that all proposals above the minimum
compete only on “cost”. The minimum qualifying mark shall be stated in
the RFP.
5.2.4 Selection Based on Consultants’ Qualifications (CQS) (refer

paragraph 3.7 and 3.8 of Guidelines)
This method may be used for very small assignments for which the need
for preparing and evaluating competitive proposals is not justified. In
such cases, the Employer shall prepare the TOR, request expressions
of interest and information on the consultants’ experience and
competence relevant to the assignment, establish a short list, and select
the firm with the most appropriate qualifications and references. The
selected firm shall be asked to submit a combined technical-financial
proposal and then be invited to negotiate the contract. In case
negotiations fail with this firm, the next best-qualified firm may be asked
to submit proposal and invited to negotiate the contract.
The Borrower shall publish in UNDB online and in dgMarket the name of
the consultant to which the contract was awarded and the price,
duration, and scope of the contract. This publication may be done
quarterly and in the format of a summarized table covering the previous
period.
5.2.5 Single-Source Selection (refer paragraph 3.9 to 3.13 of Guidelines)
Single-source selection of consultants does not provide the benefits of

competition in regard to quality and cost, lacks transparency in
selection, and could encourage unacceptable practices. Therefore,
single-source selection shall be used only in exceptional cases. The
justification for single-source selection shall be examined in the context
of the overall interests of the client and the project, and the Bank’s
responsibility to ensure economy and efficiency and provide equal
opportunity to all qualified consultants.
Single-source selection may be appropriate only if it presents a clear

advantage over competition: (a) for tasks that represent a natural
continuation of previous work carried out by the firm (see next
paragraph), (b) where a rapid selection is essential (for example, in an
emergency operation), (c) for very small assignments, or (d) when only
one firm is qualified or has experience of exceptional worth for the
assignment.
When continuity for downstream work is essential, the initial RFP shall
outline this prospect, and, if practical, the factors used for the selection
of the consultant should take the likelihood of continuation into account.
Continuity in the technical approach, experience acquired, and
continued professional liability of the same consultant may make
continuation with the initial consultant preferable to a new competition
subject to satisfactory performance in the initial assignment. For such
downstream assignments, the Employer shall ask the initially selected
consultant to prepare technical and financial proposals on the basis of
TOR furnished by the Employer, which shall then be negotiated.
If the initial assignment was not awarded on a competitive basis or was

awarded under tied financing or reserved procurement or if the
downstream assignment is substantially larger in value, a competitive
process shall normally be followed in which the consultant carrying out
the initial work is not excluded from consideration if it expresses interest.
The Bank will considered exceptions to the rule only under special
circumstances and only when a new competitive process is not
practicable.
The Borrower shall publish in UNDB on-line and in dgMarket the name
of the consultant to which the contract was awarded and the price,
duration, and scope of the contract. This publication may be done
quarterly and in the format of a summarized table covered the previous
period.
5.2.6 Selection of Individual Consultants (refer paragraph 5.1 to 5.4 of

Guidelines)
Individual consultants are normally employed on assignments for which

(a) teams of personnel are not required, (b) no additional outside (home
office) professional support is required, and (c) the experience and
qualifications of the individual are the paramount requirement. When
coordination, administration, or collective responsibility may become
difficult because of the number of individuals, it would be advisable to
employ a firm.
Individual consultants are selected on the basis of their qualifications for

the assignment. They shall be selected through comparison of
qualifications of at least three candidates among those who have
expressed interest in the assignment or have been approached directly
by the Employer. Individuals employed by Employers shall meet all
relevant qualifications and shall be fully capable of carrying out the
assignment. Capability is judged on the basis of academic background,
experience, and, as appropriate, knowledge of the local conditions, such
as local language, culture, administrative system, and government
organization.
From time to time, permanent staff or associates of a consulting firm

may be available as individual consultants. In such cases, the conflict of
interest provisions described in these Guidelines shall apply to the
parent firm.
Individual consultants may be selected on a sole-source basis with due

justification in exceptional cases such as: (a) tasks that are a
continuation of previous work that the consultant has carried out and for
which the consultant was selected competitively; (b) assignments lasting
less than six months; (c) emergency situations resulting from natural
disasters; and (d) when the individual is the only consultant qualified for
the assignment.
6. Types of Contracts
6.1 Lump Sum (Firm Fixed Price) Contract : Lump sum contracts are
used mainly for assignments in which the content and the duration of the
services and the required output of the consultants are clearly defined.
They are widely used for simple planning and feasibility studies,
environmental studies, detailed design of standard or common
structures, preparation of data processing systems, and so forth.
Payments are linked to outputs (deliverables), such as reports,
drawings, bills of quantities, bidding documents, and software programs.
Lump sum contracts are easy to administer because payments are due
on clearly specified outputs.
6.2 Time-Based Contract : This type of contract is appropriate when it is

difficult to define the scope and the length of services, either because
the services are related to activities by others for which the completion
period may vary, or because the input of the consultants required to
attain the objectives of the assignment is difficult to assess. This type of
contract is widely used for complex studies, supervision of construction,
advisory services, and most training assignments. Payments are based
on agreed hourly, daily, weekly, or monthly rates for staff (who are
normally named in the contract) and on reimbursable items using actual
expenses and/or agreed unit prices. The rates for staff include salary,
social costs, overhead, fee (or profit), and, where appropriate special
allowances. This type of contract shall include a maximum amount of
total payments to be made to the consultants. This ceiling amount
should include a contingency allowance for unforeseen work and
duration, and provision for price adjustments, where appropriate. Time-
based contracts need to be closely monitored and administered by the
Employer to ensure that the assignment is progressing satisfactorily and
that payments claimed by the consultants are appropriate.
7. Important Provisions
7.1 Currency. RFPs shall clearly state that firms may express the price for
their services, in the currency specified in RFP. If RFP allows proposals
in more than one currencies, the date & the exchange date for
converting all the bid prices to Indian Rs. shall be indicated in RFP.
7.2 Price Adjustment. To adjust the remuneration for foreign and/or local
inflation, a price adjustment provision may be included if its duration is
expected to exceed 18 months. Exceptionally, contracts of shorter
duration may include a provision for price adjustment only in exceptional
cases when local or foreign inflation is expected to be high and
unpredictable.
7.3 Payment Provisions. Payment provisions, including amounts to be paid,

schedule of payments, and payment procedures, shall be agreed upon
during negotiations. Payments may be made at regular intervals (as
under time-based contracts) or for agreed outputs (as under lump sum
contracts). Payments for advances if any should normally be backed by
advance payment securities.
7.4 Payments shall be made promptly in accordance with the contract

provisions.
7.5 Bid and Performance Securities. Bid and performance securities may be
dispensed with for consultants’ services. Their enforcement is often
subject to judgment calls, they can be easily abused, and they tend to
increase the costs to the consulting industry without evident benefits.
However, in cases where Employer feels that such securities are
required he would not be barred from doing so.
7.6 Conflict of Interest. The consultant shall not receive any remuneration in
connection with the assignment except as provided in the contract. The
consultant and its affiliates shall not engage in consulting or other

activities that conflict with the interest of the client under the contract
and shall be excluded from downstream supply of goods or construction
of works or purchase of any asset or provision of any other service
related to the assignment other than a continuation of the “Services”
under the ongoing contract.
7.8 Professional Liability. The consultant is expected to carry out its

assignment with due diligence and in accordance with prevailing
standards of the profession. As the consultant’s liability to the Employer
will be governed by the applicable law, the contract need not deal with
this matter unless the parties wish to limit this liability. If they do so, they
should ensure that (a) there must be no such limitation in case of the
consultant’s gross negligence or willful misconduct; (b) the consultant’s
liability to the Employer may in no case be limited to less than the total
payments expected to be made under the consultant’s contract, or the
proceeds the consultant is entitled to receive under its insurance,
whichever is higher; and (c) any such limitation may deal only with the
consultant’s liability toward the client and not with the consultant’s
liability toward third parties.
7.9 Staff Substitution. During an assignment, if substitution is necessary (for

example, because of ill health or because a staff member proves to be
unsuitable), the consultant shall propose other staff of at least the same
level of qualifications for approval by the Employer.
7.10 Applicable Law and Settlement of Disputes. The contract shall include
provisions dealing with the applicable law, which should be the law
applicable in India and the forum for the settlement of disputes.
Chapter – XI : Review procedures and documents to be submitted to Bank
CHAPTER XI
Review5 procedures and documents to be submitted to Bank
__________________________________________________________
A. Review procedures :
Appendix 1 of the Guidelines and Section IV of Schedule 2 annexed to

the Project Agreement details the review procedure by the Bank
procurement decision.
1. Scheduling of Procurement: (Refer paragraph 1 of Appendix 1 of

Guidelines and Section IV of Schedule 2 of Project Agreement)
(a) Prior to the issuance of any invitations to pre qualify proposal for
bidding short list or to bid for contracts, the proposed procurement plan
for the project shall be furnished to the Bank for their review and
approval in accordance with the provisions of paragraph 1 of Appendix
to the Guidelines.
(b) The size and scope of the individual packages will depend on the
magnitude, nature and location of the project in the case of Civil works
and quantity/ number and nature in case of goods, keeping in view that
works and goods are to be procured economically and efficiently
consistent with quality.
(c) The Bank shall review the procurement arrangements proposed by the
borrower, including contract packaging, applicable procedures, and
scheduling of the procurement process, for its conformity with
Guidelines and proposed implementation program and disbursement
schedule.
(d) Procurement of all goods, works and consultancy service shall be
undertaken in accordance with such procurement plan as shall have
been approved by the Bank. The Borrower shall promptly inform the
Bank of any delay, or other changes in the scheduling of the
procurement process, which could significantly affect the timely and
successful implementation the project contracts, and agree with the
Bank on corrective measures.
2. Prior Review by the Bank :-- (Refer paragraph 2 of Appendix 1 of

Guidelines and Section IV of Schedule 2 of Project Agreement)
• Prior review is required in the following cases:

Any contract for goods estimated to cost the equivalent of $ 1
million or more;
Any contract of works estimated to cost US$ 200,000 or more.
Any works contract procured under Force Account estimated to
cost more than US$ 10,000
US$ 200,000 for Consultancies involving firms.
US$ 50,000 equivalent or more for Individual Consultants.
5
Prior & Post review checklist enclosed as Annexure 5.
• Prior review, in respect of procurement of Goods & Works, consists

review by the Bank of the following for issue of no-objection.
Invitation for bid (IFB)
Draft bidding documents consisting of Instructions to Bidders
including the basis of bid evaluation and contract award; the
conditions of contract; specifications for civil works, supply of
goods, or installation of equipment, etc., as the case may be,
together with a description of the advertising procedures to be
followed for the bidding.
Draft minutes of the pre-bid conference along with draft
corrigendum if any;
Bid evaluation report in the suggested format and
recommendations for award.
First request for extension for bid validity, if it is longer than four
weeks (say 28 days) and for all subsequent requests for
extension, irrespective of the period;
In case of procurement through NCB, First request for extension
for bid validity, if it is longer than eight weeks and for all
subsequently request for extension, irrespective of the period.
One conformed copy of the contract along with the Prior Award
Review Checklists (as per Annexure - 5) prior to the delivery to the
Bank of the first application for withdrawal of funds from the Credit
in respect of such contract for clearance and assignment of the
World Bank Registration (WBR) number.
Modifications such as granting a material extension of the
stipulated time for performance of a contract, including issuing any
change order or orders( except in cases of extreme urgency)
which would in the aggregate increase the original amount of the
contract by more than 15% of the original price. Format for
seeking Bank’s clearance is attached. (Annexure - 5)
• Prior Review, in respect of hiring of consultant, would be at every
stage as follows for issue of ‘No objection’.:-
Terms of Reference;
Short-listing;
RFP documents containing Letter of Invitation, Information to
Consultants and Conditions of Contracts;
Evaluation report of the technical proposals;
Report after financial/combined evaluation (with a copy of the
winning proposal the information only);
Negotiated draft contract; and
Final Contract
Following contract signature, furnish to the Bank a copy of the final
contract before submitting the first application for disbursement
under the contract.
In the case of contracts subject to prior review, before granting a
substantial extension of the stipulated time for performance of a
contract, agreeing to any substantial modification of the scope of
the services, substituting key staff, waiving the conditions of a
contract, or making any changes in the contract that would in
aggregate increase the original amount of the contract by more

than 15 percent.
3. Post Review :
With respect to each contract which is not a Prior Review contract and
excluding contracts on account of which withdrawals form the loan are to
be made on the basis of Statesman of Expenditure, the Borrower shall
furnish to be Bank, promptly after its signing and prior delivery to the Bank
of the first application for withdrawal of funds for the loan account in
respect of such contract, one conformed copy of such contract together
with the Post Award Review Checklists (Formats attached as Annexure -
5) duly completed and accompanied with the enclosures stipulated in the
checklist, for clearance of the bank and assignment of WBR.
4. Procurement Documentation to be furnished to the Bank :

In addition to the documentation required to be submitted in respect of
Prior Review and Post Review contracts as described above, the following
procurement documentation is required to be forwarded to the Bank by the
Project Implementation/Co-Ordination Unit at least on a quarterly basis in
the formats as described hereunder. Copies of the Agreements and other
related documents of these contracts are not be forwarded to the Bank.
These documents shall be retained by the Borrower for subsequent
examination by independent auditors and Bank supervision mission :
(a) Information in respect of contracts on account of which withdrawals
from the loan are to be made on the basis of Statement of Expenditure
in Form-I;
(b) Information on the value of works executed on force Account in Form I-
B; (Format attached in Annexure - 5)
(c) Information on the value of procurement made under national shopping
in form I-C, (Format attached in Annexure - 5)
Chapter – XII : Incoterms 2000
Chapter – XII
Incoterms 2000
Introduction
The International Chamber of Commerce (ICC) in Paris developed

INCOTERMS (INternational COmmercial TERMS), a set of uniform
rules for the interpretation of international commercial terms defining
the costs, risks, and obligations of buyers and sellers in international
transactions. First published in 1936, these rules have been
periodically revised to account for changing modes of transport and
document delivery. The current version is Incoterms 2000.
Use of Incoterms
Incoterms are not implied into contracts for the sale of goods. The
contract should expressly refer to the rules of interpretation as defined
in the latest revision of Incoterms, for example, Incoterms 2000 and
arbitrators will look at: 1) the sales contract, 2) who has possession of
the goods, and 3) what payment, if any, has been made.
Organization of Incoterms
Incoterms are grouped into four categories:

1. The "E" term (EXW)-The only term where the seller/exporter makes
the goods available at his or her own premises to the
buyer/importer.
2. The "F" terms (FCA, FAS and FOB)-Terms where the
seller/exporter is responsible to deliver the goods to a carrier
named by the buyer.
3. The "C" terms (CFR, CIF, CPT and CIP)-Terms where the
seller/exporter/manufacturer is responsible for contracting and
paying for carriage of the goods, but not responsible for additional
costs or risk of loss or damage to the goods once they have been
shipped. C terms evidence "shipment" (as opposed to "arrival")
contracts.
4. The "D" terms (DAF, DES, DEQ, DDU and DDP)-Terms where the
seller/exporter/manufacturer is responsible for all costs and risks
associated with bringing the goods to the place of destination. D
terms evidence "arrival" contracts.
The following table sets out these categories.
Incoterms 2000
Group E Ex Works
EXW
Departure (...named place)
Free Carrier
FCA
(...named place)
Group F Free Alongside Ship

MainCarriage Unpaid FAS
(...named port of shipment)
Free On Board
FOB
Cost and Freight

CFR
(...named port of destination)
Cost, Insurance and Freight

CIF
Group C (...named port of destination)
MainCarriage Paid
Carriage Paid To
CPT
Carriage and Insurance Paid To

CIP
Delivered at Frontier
DAF
(a named place)
Delivered Ex Ship
DES
Group D Delivered Ex Quay

Arrival DEQ
Delivered Duty Unpaid

DDU
Delivered Duty Paid

DDP
Mode of Transport
Not all Incoterms are appropriate for all modes of transport. Some
terms were designed with sea vessels in mind while others were
designed to be applicable to all modes. The following table sets out
which terms are appropriate for each mode of transport.
Incoterms 2000
Ex Works
EXW
(...named place)
FCA Free Carrier (...named place)
Carriage Paid To
CPT
All modes of transport
including multimodal Carriage and Insurance Paid To
CIP
Delivered at Frontier
DAF
(...named place)
DDU Delivered Duty Unpaid
DDP Delivered Duty Paid
Free Alongside Ship

FAS
Free On Board
FOB
Cost and Freight

CFR
Sea and inland
waterway transport
Cost, Insurance and Freight
CIF
Delivered Ex Ship
DES
Delivered Ex Quay
DEQ
Helpful Definitions
Pre-carriage-The initial transport of goods from the seller's premises

to the main port of shipment. Usually by truck, rail or on inland
waterways.
Main carriage-The primary transport of goods, generally for the
longest part of the journey and generally from one country to
another. Usually by sea vessel or by airplane, but can be by truck or

rail as well.
On-carriage-Transport from the port of arrival in the country of
destination to the buyer's premises. Usually by truck, rail or on inland
waterways.
return to top
Notes on Incoterms
1. Underlying Contract—Incoterms were designed to be used within

the context of a written contract for the sale of goods. Incoterms,
therefore, refer to the contract of sale, rather than the contract of
carriage of the goods. Buyers and sellers should specify that their
contract be governed by Incoterms 2000.
2. EXW and FCA—If you buy Ex Works or Free Carrier you will need
to arrange for the contract of carriage. Also, since the shipper will not
receive a bill of lading, using a letter of credit requiring a bill of lading
will not be possible.
3. EDI: Electronic Data Interchange—It is increasingly common for
sellers to prepare and transmit documents electronically. Incoterms
provides for EDI so long as buyers and sellers agree on their use in
the sales contract.
4. Insurable Interest—Note that in many cases either the buyer or the
seller is not obligated to provide insurance. In a number of cases
neither party is obligated to provide insurance. However, both the
seller and buyer should be aware that they may have insurable
interest in the goods and prudence dictates purchase of insurance
coverage.
5. Customs of the Port or Trade—Incoterms are an attempt to
standardize trade terms for all nations and all trades. However,
different ports and different trades have their own customs and
practices. It is best if specific customs and practices are specified in
the sales contract.
6. Precise Point of Delivery—In some cases it may not be possible
for the buyer to name the precise point of delivery at contract.
However, if the buyer does not do so in a timely manner, it may give
the seller the option to make delivery within a range of places that is
within the terms of the contract. For example, the original terms of
sale may state CFR Port of Rotterdam. The Port of Rotterdam is
huge and the buyer may find that a particular point within the port is
best and should so state in the sales contract and in the trade term.
Also, since the buyer becomes liable for the goods once they arrive,
he or she may be responsible for unloading, storage and other
charges once the goods have been made available at the place
named.
7. Export and Import Customs Clearance—It is usually desirable that
export customs formalities be handled by the seller and import
customs formalities be handled by the buyer. However, some trade
terms require that the buyer handle export formalities and others
require that the seller handle import formalities. In each case the
buyer and seller will have to assume risk from export and import
restrictions and prohibitions. In some cases foreign exporters may
not be able to obtain import licenses in the country of import. This
should be researched before accepting final terms.
8. Added Wording—It is possible, and in many cases desirable, that
the seller and buyer agree to additional wording to an Incoterm. For
example, if the seller agrees to DDP terms, agreeing to pay for
customs formalities and import duties, but not for VAT (Value Added
Taxes) the term “DDP VAT Unpaid” may be used.
9. Packing—It is the responsibility of the seller to provide packaging
unless the goods shipped are customarily shipped in bulk (usually
commodities such as oil or grain). In most situations it is best if the
buyer and seller agree in the sales contract on the type and extent of
packing required. However, it may not be possible to know
beforehand the type or duration of transport. As a result, it is the
responsibility of the seller to provide for safe and appropriate
packaging, but only to the extent that the buyer has made the
circumstances of the transport known to the seller beforehand.
If the seller is responsible for packing goods in an ocean or air freight
container it is also his responsibility to pack the container properly to
withstand shipment.
10. Inspection—These are several issues related to inspections: a) the
seller is responsible for costs of inspection to make certain the
quantity and quality of the shipment is in conformity with the sales
contract, b) pre-shipment inspections as required by the export
authority are the responsibility of the party responsible for export
formalities, c) import inspections as required by the import authority
are the responsibility of the party responsible for import formalities,
and d) third-party inspections for independent verification of quality
and quantity (if required) are generally the responsibility of the buyer.
The buyer may require such an inspection and inspection document
as a condition of payment.
11. Passing of Risks and Costs—The general rule is that risks and
costs pass from the seller to the buyer once the buyer has delivered
the goods to the point and place named in the trade term.
Sl. Incoterm Buyers/Seller obligations Mode of

No. Transport
1 EXW, Ex Works In Ex Works, the seller/exporter/ All modes of

(...named place) manufacturer merely makes the goods transport
available to the buyer at the seller's including
"named place" of business. This trade multimodal
term places the greatest responsibility
on the buyer and minimum obligations
on the seller. The seller does not clear
the goods for export and does not load
the goods onto a truck or other
transport vehicle at the named place
of departure.
The parties to the transaction,

however, may stipulate that the seller
be responsible for the costs and risks
of loading the goods onto a transport
vehicle. Such a stipulation must be
made within the contract of sale.
If the buyer cannot handle export

formalities the Ex Works term
should not be used. In such a case
Free Carrier (FCA) is recommended.
2 FCA, Free In Free Carrier, the All modes of

Carrier seller/exporter/manufacturer clears the transport
(...named place) goods for export and then delivers including
them to the carrier specified by the multimodal
buyer at the named place. but does
not bear risk or costs once the goods
have been handed over.
3 FAS, Free In Free Alongside Ship, the Used only for

Alongside Ship seller/exporter/manufacturer clears the ocean or inland
(...named port goods for export and then places them waterway
of shipment) alongside the vessel at the "named transport
port of shipment” The parties to the
transaction, however, may stipulate in
their contract of sale that the buyer will
clear the goods for export.
4 FOB, Free On In Free On Board, the Used only for

Board (...named seller/exporter/manufacturer clears the ocean or inland
port of goods for export and is responsible for waterway
shipment) the costs and risks of delivering the transport.
goods past the ship's rail at the named
port of shipment.
5 CFR,Cost and In Cost and Freight, the Used only for

Freight seller/exporter/manufacturer clears the ocean or inland
(...named port goods for export and is responsible for waterway
d li i th d t th hi ' t t
of destination) delivering the goods past the ship's transport.

rail at the port of shipment (not
destination).
The seller is also responsible for

paying for the costs associated with
transport of the goods to the named
port of destination. However, once the
goods pass the ship's rail at the port of
shipment, the buyer assumes
responsibility for risk of loss or
damage as well as any additional
transport costs.
6 CIF,Cost, In Cost, Insurance and Freight, the Used only for

Insurance and seller/exporter/manufacturer clears the ocean or inland
Freight goods for export and is responsible for waterway
(...named port delivering the goods past the ship's transport.
rail at the port of shipment (not
of destination)
destination).
The seller is responsible for paying for

the costs associated with transport of
the goods to the named port of
destination. However, once the goods
pass the ship's rail at the port of
shipment, the buyer assumes
responsibility for risk of loss or
damage as well as any additional
transport costs.
The seller is also responsible for

procuring and paying for marine
insurance in the buyer's name for the
shipment
seller is responsible for contracting

and paying for carriage and insurance
of the goods, but not responsible for
additional costs or risk of loss or
damage to the goods once they have
been shipped.
Seller is responsible for Contract and

pay costs of carriage by sea or inland
waterway and insurance for 110
percent of the value of the contract to
the named port of destination. The
insurance policy must allow the buyer
to make claim directly from the insurer.
Deliver the insurance document to the
buyer.
7 CPT Carriage In Carriage Paid To, the All modes of

Paid To seller/exporter/manufacturer clears the transport
(...named port goods for export, delivers them to the including
i d i ibl f i lt d l
of destination carrier, and is responsible for paying multomodal

for carriage to the named port of
destination. However, once the seller
delivers the goods to the carrier, the
buyer becomes responsible for all
additional costs.
The seller is not responsible for

procuring and paying for insurance
cover
8 CIP Carriage In Carriage and Insurance Paid To, All Modes of

and Insurance the seller/exporter clears the goods for transport
Paid To export, delivers them to the carrier, including
(...named port and is responsible for paying for multimodal
carriage and insurance to the named
of destination)
port of destination. However, once the
goods are delivered to the carrier, the
buyer is responsible for all additional
costs.
the seller is responsible for contracting

and paying for carriage and insurance
of the goods, but not responsible for
additional costs or risk of loss or
damage to the goods once they have
been shipped
9 DAF Delivered In Delivered At Frontier, the Used for all

At Frontier seller/exporter/manufacturer clears the modes of
(...named place) goods for export and is responsible for transport so long
making them available to the buyer at as the final
the named point and place at the shipment to the
frontier, not unloaded, and not cleared named place at
for import. the frontier is by
land
In the DAF term, naming the precise
point, place, and time of availability at
the frontier is very important as the
buyer must make arrangements to
unload and secure the goods in a
timely manner.
Frontier can mean any frontier

including the frontier of export. The
DAF term is valid for any mode of
shipment, so long as the final
shipment to the named place at the
frontier is by land.
The seller is not responsible for

procuring and paying for insurance
cover.
10 DES, Delivered In Delivered Ex Ship, the seller/ Used only for

Ex Ship exporter/manufacturer clears the ocean or inland
(...named port goods for export and is responsible for waterways

of destination) making them available to the buyer on transport
board the ship at the named port of
destination, not cleared for import.
The seller is thus responsible for all

costs of getting the goods to the
named port of destination prior to
unloading.
The DES term is used only for

shipments of goods by ocean or inland
waterway or by multimodal transport
where the final delivery is made on a
vessel at the named port of
destination.
11 Delivered Ex In Delivered Ex Quay, the Used only for

Quay (...named seller/exporter/manufacturer clears the ocean or inland
port of goods for export and is responsible for waterways
destination) making them available to the buyer on transport
the quay (warf) at the named port of
destination, not cleared for import. The
buyer, therefore, assumes all
responsibilities for import clearance,
duties, and other costs upon import as
well as transport to the final
destination. This is new for Incoterms
2000.
The DES term is used only for

shipments of goods arriving at the port
of destination by ocean or by inland
waterway.
12 DDU Delivered In Delivered Duty Unpaid, the

Duty Unpaid seller/exporter/manufacturer clears the
(...named place goods for export and is responsible for
of destination) making them available to the buyer at
the named place of destination, not
cleared for import.
The seller, therefore, assumes all

responsibilities for delivering the
goods to the named place of
destination, but the buyer assumes all
responsibility for import clearance,
duties, administrative costs, and any
other costs upon import as well as
transport to the final destination.
The DDU term can be used for any

mode of transport. However, if the
seller and buyer desire that delivery
should take place on board a sea
vessel or on a quay (wharf), the DES
or DEQ terms are recommended.
13 DDP Delivered In Delivered Duty Paid, the

Duty Paid seller/exporter/manufacturer clears the
(...named place goods for export and is responsible for
of destination) making them available to the buyer at
the named place of destination,
cleared for import, but not unloaded
from the transport vehicle.
The seller, therefore, assumes all

responsibilities for delivering the
goods to the named place of
destination, including all responsibility
for import clearance, duties, and other
costs payable upon import.
The DDP term can be used for any

mode of transport.
All forms of payment are used in DDP

transactions.
The DDP term is used when the

named place of destination (point of
delivery) is other than the seaport or
airport.
Chapter – XIII : Provisions of exemption from Customs and Excise tariff relevant to
World Bank funded Project
CHAPTER – XIII
Provisions of exemption from Customs and Excise tariff relevant to World

Bank funded 6
The Custom & Excise tariff provides for exemption on Goods procured for the
World Bank funded project. The relevant notifications are attached for ready
reference as Attachment XIII/1. For availing such exemptions, the latest
provisions may be referred to the Custom Tariff of India and Central Excise Tariff.
6
Exemption from Customs and Excise tariff enclosed as Annexure- 6.
Annexure 1 to Chapter – V
Annexure - 1
Annexure –1 to Chapter – V
Table of Contents
How to Use These Forms .................................................................................99
Section I. Bid Evaluation Standard Forms ...................................................100

Standard Cover ......................................................................................100
Letter of Transmittal ...............................................................................101
Table 1. Identification ............................................................................102
Table 2. Bidding Process.......................................................................103
Table 3. Bid Submission and Opening ..................................................104
Table 4. Bid Prices (as Read Out).........................................................105
Table 5. Preliminary Examination..........................................................106
Table 6. Corrections and Unconditional Discounts................................107
Table 7. Exchange Rates ......................................................................108
Table 8. Currency Conversion (Multiple Currencies) .............................109
Table 9. Currency Conversion (Single Currency) ..................................110
Table 10. Additions, Adjustments, and Priced Deviations .....................111
Table 11. Domestic Preference for Goods ............................................112
Table 12. Domestic Preference for Works.............................................113
Table 13. Proposed Contract Award .....................................................114
Annex I. Evaluation Guide .............................................................................115
Annex II. Bid Opening Checklist ...................................................................127
Annex III. Example of Preliminary Examination ..........................................128
Annex IV. Bid Evaluation Summary Checklist.............................................129
- 98 -
How to Use These Forms
1. The evaluation forms and guide contained in this document provide step-
by-step procedures for the evaluation of bids solicited through ICB. In all
instances, the bidding and evaluation procedures described in the
Instructions to Bidders (ITB) of the actual bidding document used should be
followed.
- 99 -
Section I. Bid Evaluation Standard Forms
D. Standard Cover
Bid Evaluation Report

and
Recommendation for Award of Contract
Name of Project: National Agricultural Innovation Project
IBRD Loan or IDA Credit No.: 4161-IN/4162-IN
Contract Name:
Identification Number:
Date of Submission:
- 100 -
E. Letter of Transmittal
If the contract is subject to prior review, the bid evaluation report should be
attached with a Letter of Transmittal from the Borrower ministry, department, or
agency responsible for communications with the Bank. The letter should highlight
conclusions and offer any additional information that would help to expedite
review by the Bank. In addition, any unresolved or potentially contentious issues
should be highlighted. The letter should be sent to the Chief of the Sector
Operations Division or the Country Operations Division responsible for the loan,
unless another Bank official has been designated by the Bank for such
correspondence.
Note: When subject to post review, the evaluation report and the signed contract
should be submitted to the Bank before sending (or with) the pertinent
Application for Withdrawal, Special Commitment, replenishment of the
Special Account, or, in case of a Statement of Expenditures, retained for
storage for eventual retrieval. (See Guidelines, Appendix 1, and the Loan
Agreement.)
- 101 -
Table 1. Identification
1.1 Name of Borrower

1.2 Loan/Credit number
1.3 Date of effectiveness
1.4 Closing date
(a) original
(b) revised
1.5 Name of project
1.6 Purchaser (or Employer)
(a) name
(b) address
1.7 Contract number (identification)
1.8 Contract description
1.9 Cost estimate1
1.10 Method of procurement (check ICB LIB Other
one)
1.11 Prior review required2 Yes No
1.12 Domestic preference allowed Yes No
1.13 Fixed price contract Yes No
1.14 Cofinancing, if any:
(a) agency name
(b) percent financed by agency
1
Cite source and date if other than Staff Appraisal Report.
2
If response is “no,” items 2.2(b), 2.4(b), and 2.6(b) in Table 2 may be left blank,
unless the Bank’s prior review was specifically requested.
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Table 2. Bidding Process
2.1 General Procurement Notice

(a) first issue date
(b) latest update
2.2 Prequalification, if required
(a) number of firms prequalified
(b) date of Bank’s no-objection
2.3 Specific procurement notice
(a) name of national newspaper
(b) issue date
(c) name of international
publication
(d) issue date
(e) number of firms notified
2.4 Standard Bidding Document
(a) title, publication date
(b) date of Bank’s no-objection
(c) date of issue to bidders
2.5 Number of firms issued
documents
2.6 Amendments to documents, if
any 1. 2. 3.
(a) list all issue dates 1. 2. 3.
(b) date(s) of Bank’s no-
objection
2.7 Date of pre-bid conference, if any
2.8 Date minutes of conference sent
to bidders and Bank
- 103 -
Table 3. Bid Submission and Opening
3.1 Bid submission deadline

(a) original date, time
(b) extensions, if any
3.2 Bid opening date, time
3.3 Record of bid opening, date sent
to Bank
3.4 Number of bids submitted
3.5 Bid validity period (days or
weeks)
(a) originally specified
(b) extensions, if any
(c) date of Bank’s no-objection, if
required1
- 104 -
Table 4. Bid Prices (as Read Out)
Bidder Identification Read-out Bid Price(s)1 Modifications or

Name City/State or Province Country Currency(ies Amount(s) or Comments2
) %
(a) (b) (c) (d) (e) (f)
etc.
1
For single currency option (see Annex I, para. 6(d)(ii)), secondary currencies are expressed in column e as a
percentage of the total bid price.
2
Describe any modifications to the read-out bid, such as discounts offered, withdrawals, and alternative bids. Note
also the absence of any required bid security or other critical items. Refer also to Annex I, para. 2 herein.
- 105 -
Table 5. Preliminary Examination
Bidder Verification Eligibility Bid Security Completene Substantial Acceptance for

ss of Bid Responsiveness Detailed
Examination
(a) (b) (c) (d) (e) (f) (g)
etc.
Note: For explanations of headings, see Annex I, para. 5 herein. Additional columns may be needed, such as for
responsiveness to technical conditions. See example in Annex IV.
- 106 -
Table 6. Corrections and Unconditional Discounts
Bidder Read-out Bid Price(s) Corrections Corrected Bid

Unconditional Corrected/Discounted
2
Price(s) Discounts Bid Price(s)
Currency(ies Amount(s) Computationa Provisiona Percen Amount(s)
) l Errors1 l Sums t
(a) (b) (c) (d) (e) (f) = (c) + (d) - (g) (h) (i) = (f) – (h)
(e)
etc.
Note: Only bids accepted for preliminary examination (Table 5, column g) should be included in this and subsequent
tables. Columns a, b, and c are from Table 4 (columns a, d, and e, respectively).
1
Corrections in column d may be positive or negative.
2
If the discount is offered as a percent, column h is normally the product of the amounts in columns f and g. Refer to para.
6(c). If the discount is provided as an amount, it is entered directly in column h. A price increase is a negative discount.
- 107 -
Table 7. Exchange Rates
Currency Used for Bid Evaluation:
Effective Date of Exchange Rate:
Authority or Publication Specified for Exchange Rate:
Note: Attach copy of exchange rates provided by specified authority or

publication.
- 108 -
Table 8. Currency Conversion (Multiple Currencies)

Specify Evaluation Currency:
Bidder Currency(ies) of Corrected/Discounte Applicable Evaluation Currency

Bid d
Bid Price(s) Exchange Bid Price(s) Total Bid Price2
Rate(s)1
(a) (b) (c) (d) (e) = (c) x (d) (f)
etc.
Note: This table is to be used for SBDG and Option B of SBDLW. Columns a, b and c are from Table 6, columns a, b and i.
1
Column d is from Table 7.
2
Column f is the sum of bid prices in column e for each bidder.
- 109 -
Table 9. Currency Conversion (Single Currency)

Bidder Corrected/Discount Payment Composition1 Exchange Amounts Exchange Evaluation

ed in Currency
Bid Price Currency Percent Amount in Rate Used Currency Rate for Bid Prices Total3
(in specified of of Total Evaluation by Bidder1 of Evaluation
2
currency) Payment Bid Currency Payment
(a) (b) (c) (d) (e) = (b) x (f) (g) = (e) x (h) (i) = (g) x (j)
(d) (f) (h)
etc.
Note: This table is used for SBDSW and Option A of SBDLW. Columns a and b are from Table 6, columns a and i.
1
Columns c, d, and f are provided in the SBDLW Appendix to Bid and in the (Form of) Contractor’s Bid in the SBDSW.
2
Column h is from Table 7.
3
Column j is the sum of bid prices in column i for each bidder.
- 110 -
Table 10. Additions, Adjustments, and Priced Deviations

Bidder Corrected/Discounted Additions2 Adjustments2 Priced Deviations2 Total Price

Bid Price1
(a) (b) (c) (d) (e) (f) = (b) + (c) + (d)
+ (e)
etc.
1
Column b is from either Table 8, column f or Table 9, column j.
2
Each insertion in columns c, d, or e should be footnoted and explained in adequate detail, accompanied by calculations. Refer to
paras. 6(e), 6(f), and 6(g) respectively of Annex I
- 111 -
Table 11. Domestic Preference for Goods

Bidder Domestic Total Exclusions Revised Domestic Preference Total

Preferenc Price2 for Total Preferenc Price5 Comparison
e Group1 Preference3 e (%)4 Price
(a) (b) (c) (d) (e) = (c) – (d) (f) (g) (h) = (c) + (g)
etc.
1
Column b refers to Groups A, B, or C, as indicated by bidder, subject to verification by Borrower.
2
Column c is from Table 10, column f. If the lowest total price is from a Group A or Group B bidder, it is the lowest evaluated
bidder, and the remainder of the table need not be filled out. Columns d through h need to be filled out only for Group C bids.
3
Column d is the sum of costs in columns d and e from Table 10 plus other costs incurred within the Borrower’s country.
Footnotes should be provided to explain the significant components of column d.
4
Column g will be 15 percent of CIP Bid price.
5
Column h for Group A bidders is zero. Group B bids at this stage should no longer be compared. For Group C bidders, column h
is the product of columns e and g.
- 112 -
Table 12. Domestic Preference for Works

Bidder Domestic Total Exclusions for Revised Total Preference Total Comparison
Preference Price2 Preference3 4
Price
Group1
(a) (b) (c) (d) (e) = (c) – (d) (f) (g) = (c) + (f)
etc.
1
Column b refers to Group A (eligible domestic bidders) or Group B (others) as indicated by bidder, subject to verification by
Borrower.
2
Column c is from Table 10, column f. If the lowest priced bid is from a Group A bidder, it is the lowest evaluated bidder, and the
remainder of the table need not be filled out.
3
Column d is the sum of costs in columns d and e from Table 10. An attachment should be provided to explain the significant
components of column d. Columns d and e may be left blank for Group A bidders.
4
Column f for Group A bidders is zero. For Group B bidders, column f is 7.5 percent of column e.
- 113 -
Table 13. Proposed Contract Award
1. Lowest evaluated responsive

bidder (proposed for contract
award).
(a) name
(b) address
2. If bid submitted by agent, list
actual supplier.
(a) name
(b) address
3. If bid from joint venture, list all
partners, nationalities, and
estimated shares of contract.
4. Principle country(ies) of origin of
goods/materials.
5. Estimated date (month, year) of
contract signing.
6. Estimated delivery to project
site/completion period.
Currency(ies) Amount(s) or %
1
7. Bid Price(s) (Read-out)
8. Corrections for Errors2
9. Discounts3
10. Other Adjustments4
11. Proposed Award5
12. Disbursement Category6
1
From Table 6, columns b and c.
2
From Table 6, column d.
3
From Table 6, column h. Include any cross-discounts. See Annex I, para. 7(b).
4
All adjustments should be explained in detail.
5
Sum of the prices in Items 7–10. For single currency bids, express secondary
currency amounts as percentages.
6
From the Loan Agreement.
- 114 -
Annex I. Evaluation Guide
1. Identification, Tables 1, 2, and 3 provide for the filing of basic information on the
Bidding procurement process. This information is necessary to monitor
Process, and compliance with the Loan Agreement, and particularly paras. 2.7
Bid and 2.8 on advertising and notification of the Guidelines.
Submission
2. Bid Opening7 All bidders or their representatives are invited to attend the bid
opening, where bids are read out and recorded, along with a list
of attendees. The record is prepared for prompt transmittal to the
Bank. Copies should be sent to all bidders. Bid opening
procedures are described in the ITB. To assist in carrying out the
opening and preparing of the record, a checklist is provided in
Annex II. The checklist should preferably be filled out for each
bid during the actual reading out at the meeting. The reading
should be from the original version of each bid, and the actual
amounts and other key details read out should be circled for later
verification. If bids are expressed in a single currency, other
currency needs expressed as a percentage should be recorded.
It may also be desirable to read out exchange rates used by
bidders (see para. 6(d)(ii) in this Annex).
Any envelopes containing substitutions, modifications, or

withdrawals must be subject to the same level of scrutiny,
including the reading out of critical details, such as price
changes. Failure to read out such information and include it in
the written record may result in denial of its inclusion in bid
evaluation. If a bid has been withdrawn by cable, it should
nonetheless be read out and should not be returned to the bidder
until the authenticity of the withdrawal notice has been confirmed.
As stated in the ITBs, no bids should be rejected at the bid

opening except those received after the deadline for receipt of
bids. Such bids shall be returned unopened to the bidder. A
summary of the read-out bid prices should be provided in Table
4.
3. Bid Validity The duration of the validity of each bid should be the one
specified in the ITB and should be confirmed in the signed (form
of) bid. If exceptional circumstances occur in which award
cannot be made within the validity period, extensions in writing
should be requested of bidders, in accordance with the ITB (also
Guidelines, para. 2.56). Extensions to the validity of bid security
8
7
See Guidelines, para. 2.45. The record should be sent promptly to the Bank after bid opening and
therefore does not usually accompany the bid evaluation report.
- 115 -
should also be requested of bidders, if necessary.8 Note that for

fixed price contracts subject to prior review, a no-objection by the
Bank is necessary for extensions longer than four (4) weeks and
for any subsequent extensions (Guidelines, Appendix 1, para.
2(d)).9 Note any extensions in Table 3.
4. Principles of After the public opening of bids, information relating to the

Evaluation examination, clarification, and evaluation of bids shall not be
disclosed to bidders or other persons not officially concerned with
this process until the successful bidder is notified of the award of
contract (Guidelines, para. 2.46). The Bank recommends
appointment by the Borrower of an evaluation committee,
consisting of a minimum of three qualified members who should
work in a secure office where all bidding documents can be kept.
There may be a considerable advantage if the same members
participated in the preparation of the bidding documents.
On occasion, the Borrower may request clarifications of bidders

concerning ambiguities or inconsistencies in the bid. As required
in the ITBs, such requests shall be in writing, and no change in
the price or scope of the originally offered goods, works, or
services shall be sought or accepted, except for the correction of
arithmetic error. The responses from bidders shall also be in
writing. (Refer also to Guidelines, Appendix 4, para. 10.) No
circumstances shall justify meetings or conversations between
the Borrower (or its consultants) and bidders during the bid
evaluation process.10
Bidders frequently attempt to contact the Borrower during bid

evaluation, directly or indirectly, to query progress of evaluation,
to offer unsolicited clarifications, or to provide criticisms of their
competition. Receipt of such information should be
acknowledged as to receipt only.11 Borrowers must evaluate bids
on the basis of the information provided in the respective bids.
However, additional information provided may be useful in
improving the accuracy, speed, or fairness of the evaluation.
Nonetheless, no changes in the bid price or substance are
allowed.
5. Preliminary The evaluation process should begin immediately after bid

Examination opening. The purpose of preliminary examination is to identify
of Bids and reject bids that are incomplete, invalid, or substantially non-
8
Particular care must be taken in cases where the deadline for submission (or for opening) of bids can be
extended, as the duration of bid security is frequently provided in terms of an expiration date. In contrast,
bid validity is specified in terms of an interval after the deadline for receipt or the date of bid opening.
9
Revised to eight (8) weeks, in the first (January 1996) reprint of the 1995 edition of Guidelines.
10
See Guidelines, para. 2.6 for an explanation of two-stage bidding. If used, evaluation of the second-stage
bidding follows the procedures in this Annex I. Evaluation Guide.
11
On occasion, bidders approach the Bank with information. Bank policy is to acknowledge the
correspondence and pass it on to the Borrower for its consideration (Guidelines, Appendix 4, paras. 11–
14).
- 116 -
responsive to the bidding documents and therefore are not to be

considered further. The following checks should be applied:
(a) Verification: Attention should be directed toward

deficiencies that, if accepted, would provide unfair
advantages to the bidder. Sound judgment must be used:
for example, simple omissions or mistakes arguably
occasioned by human error should not be grounds for
rejection of the bid. Rarely is a bid perfect in all respects.
However, the validity of the bid itself, for example, its
signatures, must not be in question. If the bidder is a joint
venture, the joint venture agreement must be submitted; if
the bidder is an agent, an authorization from the supplier or
manufacturer must be provided in addition to any
documentation required of the supplier or manufacturer
itself. All copies of the bid should be compared with the
original and corrected accordingly, if necessary. Thereafter,
the original should be kept in a safe location, and only
copies should be used in evaluation.
(b) Eligibility: The eligibility of the bidder must be checked as

per the provision of the bidding document.
(c) Bid Security: The bidding document may require

submission of a bid security. If so, the bid security must
conform to the requirements of the ITB, and it must
accompany the bid. If the bid security is issued as a bank
guarantee, it must be consistent with the wording of the bid
security form provided in the bidding document. Submission
of a copy of the security or submission of a counter
guarantee naming the Borrower’s bank instead of the
Borrower is unacceptable. Furthermore, securities for an
amount smaller or for a period shorter than the one
specified in the ITB are not acceptable. The security for a
bid submitted by a joint venture should be in the name of all
of the partners of the joint venture.
(d) Completeness of Bid: Unless the bidding documents have

specifically allowed partial bids—permitting bidders to quote
for only select items or for only partial quantities of a
particular item—bids not offering all of the required items
should ordinarily be considered non-responsive. However,
under works contracts, missing prices for occasional work
items are considered to be included in prices for closely
related items elsewhere. If any erasures, interlineations,
additions, or other changes have been made, they should
be initialled by the bidder. They may be acceptable if they
are corrective, editorial, or explanatory. If they are not, they
should be treated as deviations and should be analyzed as
per para. 5(e) below. Missing pages in the original copy of
- 117 -
the bid may be cause for rejection of the bid, as may

contradictions in model numbers or other designations of
critical supply items.
(e) Substantial Responsiveness: Major deviations to the

commercial requirements and technical specifications are a
basis for the rejection of bids. As a general rule, major
deviations are those that, if accepted, would not fulfil the
purposes for which the bid is requested, or would prevent a
fair comparison with bids that are properly compliant with
the bidding documents. Examples of major deviations
include:
(i) Stipulating price adjustment when fixed price bids

were called for
(ii) Failing to respond to specifications by offering

instead a different design or product that does not
offer substantial equivalence in critical performance
parameters or in other requirements
(iii) Phasing of contract start-up, delivery, installation, or

construction not conforming to required critical dates
or progress markers
(iv) Subcontracting in a substantially different amount or

manner than that permitted
(v) Refusing to bear important responsibilities and

liabilities allocated in the bidding documents, such as
performance guarantees and insurance coverage
(vi) Taking exception to critical provisions such as

applicable law, taxes and duties, and dispute
resolution procedures
(vii) Those deviations that are specified in the ITB as

requiring rejection of the bid (such as, in the case of
works, participating in the submission of another’s bid
other than as a subcontractor).
Bids that offer deviations may be considered substantially

responsive—at least as to the issue of fairness—if the
deviations can be assigned a monetary value that would
be added as a penalty during the detailed evaluation
process and if such deviations would be acceptable in the
eventual contract.
The results of preliminary examination should be
- 118 -
presented in Table 5. If the bid fails preliminary

acceptance, the reasons must be clearly explained in
footnotes or in an attachment, as necessary. An example
is shown in Annex IV. Borrowers may find it useful to
include additional tables for itemization of responsiveness
to a list of technical or commercial specifications. These
should be attached to Table 5.
6. Detailed Only those bids surviving preliminary examination need to be

Examination examined in this phase.
of Bids
(a) Corrections for Errors: The methodology for correction of
computational errors is described in the ITB. The read-out
bid prices and their corrections should be noted in Table 6,
column d. The corrections are considered binding on the
bidder. Unusual or large corrections that could affect the
comparative ranking of bids should be explained in
footnotes.
(b) Corrections for Provisional Sums: Bids may contain

provisional sums set by the Borrower for contingencies or
for nominated subcontractors, etc. As these sums are the
same for all bids, they should be subtracted from the read-
out prices in Table 6, column e to allow for a proper
comparison of bids in subsequent steps. However, those
provisional sums set aside for Daywork,12 where priced
competitively, should not be included in the deductions.
(c) Modifications and Discounts: In accordance with the ITB,

bidders are allowed to submit, prior to bid opening,
modifications to their original bid. The impact of
modifications should be fully reflected in the examination
and evaluation of the bids. These modifications may include
either increases or discounts to the bid amounts that reflect
last-minute business decisions. Accordingly, the original bid
prices should be modified at this point in the evaluation.
Discounts offered in accordance with the ITB that are
conditional on the simultaneous award of other contracts or
lots of the contract package (cross-discounts) shall not be
incorporated until the completion of all other evaluation
steps. The effect of unconditional discounts (or
alternatively, increases) should be shown as in Table 6
(columns g and h). Any discount expressed in percent must
be applied to the appropriate base specified in the bid (i.e.,
check to see if it applies to any provisional sums).
(d) Evaluation Currency: The remaining bids as corrected for

computational errors and as adjusted for discounts should
12
Refers to unforeseen work. For details, see SBDLW, Section B, or SBDSW, Section 7.
- 119 -
be converted to a common evaluation currency, as

described in the ITB. The exchange rates to be used in the
calculations are to be listed in Table 7. If multiple exchange
rates exist for a particular currency (for commercial,
government transactions, etc.), indicate which applies, with
reasons for the choice. Where exchange rates for a
particular currency are not available from the specified
authority or publication, identify the secondary source, as
well as any necessary conversion calculations.
There are two different currency options for

bidding/payment, each requiring a different conversion
methodology:
(i) The SBDG and Option B of SBDLW use the multiple

currency option, in which the bid price is expressed in
a number of currencies. For this procurement, use
Table 8.
(ii) The SBDSW and Option A of SBDLW use the single

currency option, in which the bid price is expressed
entirely in a specific currency, usually in the
Borrower’s currency, with other foreign currency
requirements stated as percentages of the bid price,
together with the exchange rates used by the bidder
to determine the percentages. For SBDLW single
currency bids, sections of the Works may require
payment in different currencies and proportions. In
such instances, the impact of any corrections found
will require a lengthier analysis for each bid, based
on the submitted Appendix to Bid. Table 9 is to be
used for these calculations.
(e) Additions: Omissions to the bid should be compensated for

by adding the estimated costs for remedying the deficiency.
Where items missing in some bids are present in others, an
average of quoted prices could be used to compare
competitors’ bids. Alternatively, external sources, such as
published price lists, freight tariff schedules, etc., may be
appropriate. The cost determined should be expressed in
the evaluation currency and shown in Table 10, column c.
(f) Adjustments: The ITB specifies which, if any, performance

or service factors will be taken into account in the bid
evaluation (see, for example, para. 26 of SBDG). The
methodology used in evaluation of these factors should be
precisely described in the bid evaluation report and should
be fully consistent with the ITB provisions. Bonuses or
additional credits that reduce the evaluated bid price will not
be given in the bid evaluation for features that exceed the
- 120 -
requirements stated in the bidding documents, unless

specifically provided for in the ITB.13 The value of
adjustments will be expressed in terms of cost, for all works
and most goods contracts, and should be shown in Table
10, columned and expressed in the evaluation currency.14
(g) Priced Deviations: As discussed under para. 5(e), bids with

minor deviations may be considered substantially
responsive if their further consideration assigns a monetary
cost or penalty to the bid for the purpose of bid comparison:
(i) Requests for deviations that are expressed by the

bidder in vague terms, such as “we would like an
increase in the amount of mobilization advance” or
“we wish to discuss changes in the completion
schedule” should ordinarily be ignored in bid
evaluation. However, a categorical statement by the
bidders taking exception to a requirement in the
bidding documents should be treated as a deviation.
(ii) If a bid requires a faster payment stream than

specified in the bidding documents, the penalty is
based on the prospective benefit to the bidder. This
situation assumes use of a discounted cash flow
using the prevailing commercial interest rates for the
currencies of the bid, unless the ITB foresees the
eventuality and specifies a rate.
(iii) If a bid provides for a delivery or completion that is beyond

the date specified in the bidding documents but that is
nonetheless technically acceptable to the Borrower, the time
advantage given should be assessed a penalty specified in
the ITB or, if one is not provided, based on the rate of
liquidated damages specified in the bidding documents.
The deviations should be priced in the evaluation currency

in Table 10, column e.
7. Determination In the comparison of bids for works and for most goods, the
of Award corrected and discounted bid prices, together with
adjustments for omissions, deviations, and specified
evaluation factors, have been noted in Table 10. The bidder
with the lowest total is the lowest evaluated cost bidder at
this stage, subject to:
• Application of domestic preference, if any is allowed;
13
Similarly, a bid offering a choice of different product models is evaluated on the basis of the lowest price
offered by the bidder from among the models meeting the requirements of the bidding document.
14
The Bank on occasion may allow the use of the Merit Point System for the purchase of goods. If so, the
adjustments will be expressed in points. Refer to ITB (para. 26.5) of the SBDG and to the Bank directly
for details on bid evaluation using the point system.
- 121 -
• Application of any discounts, contingent on the

simultaneous award of multiple contracts or lots; and
• Post-qualification evaluation, or, if prequalification has
occurred, confirmation of prequalification information.
(a) Domestic Preference:
Preference for Domestically Manufactured Goods

3. Bidding documents shall clearly indicate preference
to be granted to domestic manufactured goods and
the information required to establish the eligibility of
a bid for such preference. The nationality of the
manufacturer or Supplier is not a condition for such
eligibility. The methods and stages set forth
hereunder shall be followed in the evaluation and
comparison of bids.
4. For comparison, responsive bids shall be classified

in one of the following three groups:
(a) Group A : Bids exclusively offering goods

manufactured in the country of the Borrower if
the bidder establishes to the satisfaction of the
Borrower and the Bank that (i) labor, raw
material, and components from within the
country of the Borrower will account for 30
percent or more of the EXW price of the
product offered, and (ii) the production facility in
which those goods will be manufactured or
assembled has been engaged in
manufacturing/assembling such goods at least
since the time of bid submission.
(b) Group B : all other bids offering goods
manufactured in the country of the Borrower.
(c) Group C : bids offering goods manufactured
abroad that have been already imported or that
will be directly imported.
5. The price quoted for goods in bids of Groups A and

B shall include all duties and taxes paid or payable
on the basic materials or components purchased in
the domestic market or imported, but shall exclude
the sales and similar taxes on the finished product.
The price quoted for goods in bids of Group C shall
be on CIP (place of destination), which is exclusive
of customs duties and other import taxes already
paid or to be paid.
6. In the first step, all evaluated bids in each group
- 122 -
shall be compared to determine the lowest bid in

each group. Such lowest evaluated bids shall be
compared with each other and if, as a result of this
comparison, a bid from Group A or Group B is the
lowest, it shall be selected for the award.
7. If as a result of the comparison under paragraph four

above, the lowest evaluated bid is a bid from Group
C, the lowest evaluated bid from Group C shall be
further compared with the lowest evaluated bid from
Group A after adding to the evaluated price of goods
offered in the bid from Group C, for the purpose of
this further comparison only, an amount equal to 15
percent of the CIP bid price. The lowest evaluated
bid determined from this last comparison shall be
selected.
(b) Cross-Discounts: These are conditional discounts offered in

the event that more than one contract or lot will be awarded
to the same bidder. Bid evaluation in such cases can be
quite complicated, particularly for goods contracts where
domestic preference may apply. The sizes of cross-
discounts offered by each bidder may vary with the potential
number of contracts awarded. The ITB may also limit the
number or total value of awards to a bidder on the basis of
its financial and technical capacity.15 Thus, a bidder offering
the lowest evaluated bid on a particular contract may be
denied award because of such a restriction. The Borrower
shall select the optimum combination of awards on the basis
of least overall cost of the total contract package, consistent
with the qualification criteria. (Refer to Guidelines, para.
2.4.) Presentations of the calculations should be made on
an attachment to the report, which should include the bid
evaluation(s) for the other contracts, if they have been
evaluated separately.
(c) Qualification: If prequalification was conducted, the bidder

whose bid is the lowest evaluated should receive the award,
unless the bidder’s qualifications have since materially
deteriorated or the bidder has since received additional work
that over stresses its capacity. The Borrower should satisfy
itself fully on both accounts.
Where prequalification has not occurred, the prospective

awardee should be subjected to post-qualification, the
procedures for which are described in the ITB.16
If the lowest evaluated bidder fails post-qualification, its bid

15
This restriction may originate with prequalification.
16
The Annex in the Bank’s Standard Prequalification Document is useful for postqualification evaluations.
- 123 -
should be rejected, and the next ranked bidder should then

be subject to post-qualification examination. If successful,
this bidder should receive the award. If not, the process
continues. (Refer to Guidelines, para. 2.57.)
The rejection of a bid for reasons of qualification requires

substantial justification, which should be clearly documented
in attachments to the report. A history of poor performance
may be considered a substantial justification.
(d) Alternative Bids: The ITB may request or allow the

Borrower to accept alternative bids under the stipulation that
only the alternative submitted by the lowest evaluated
bidder and conforming to the bidding documents will be
considered.
(i) For works, the ITBs may allow alternative technical

solutions and/or alternative times for completion.
(ii) For goods, the ITB may allow for submission of an

alternative payment schedule. The same ITB (paras.
11.2(b)(ii) or (iii)) may also require bidders to submit, in
addition to any CIF or CIP bids, similar bids less
transport or insurance, such as FCA or CFR.17 The
Borrower, if it is willing to accept the alternative bid
offered by the lowest evaluated bidder, should provide
justification for doing so.18
Calculations for the evaluation of alternatives should be

provided in an attachment to the report.
(e) Proposed Award: The amount of the proposed award shall

be the bid price as submitted by the winning bidder and
adjusted as described in the ITB for corrections, any
discounts (including cross-discounts), and acceptance by
the Borrower of alternative offers from the lowest evaluated
bidder. Adjustments to the final price and scope of the
contract to correct for acceptable omissions and quantity
variations in the bid may be negotiated with the lowest
evaluated bidder.19 Prior concurrence of the Bank with the
proposed award is required before such negotiations may
be entered into (Guidelines, para. 2.62). Table 13 should be
filled out to establish the actual amount of the contract
award.
17
INCOTERMS 1990.
18
If the contract is signed without insurance coverage, the Borrower must provide the Bank with evidence
of alternative insurance payable in a freely usable currency to replace or repair such goods (Guidelines,
para. 2.27, and General Conditions of the Loan or Credit Agreement).
19
Note that SBDG—ITB para. 31 allows the Purchaser (Borrower) the right to unilaterally vary quantities
within set limits at the time of award.
- 124 -
If (a) none of the bids are found to be responsive, (b) bids

are unreasonably high in price compared with earlier
estimates, or (c) none of the bidders are qualified, the
Borrower may consider rejection of all bids (prior Bank
concurrence is required) (Guidelines, paras. 2.59–2.62).
(f) Report Submission
(i) Prior Review: In accordance with the loan

agreement, the Borrower must submit the completed
bid evaluation report containing the required
summary to the Bank as soon as possible after bid
opening, preferably no later than three (3) weeks
prior to the expiration of the bid validity period. The
report should include the appropriate items listed in
Annex V.
(ii) Post Review: For contracts not subject to prior

review, the Borrower may award the contract upon
completion of bid evaluation (Guidelines, Appendix 1,
para. 4). As stated therein, subsequent submission
of the bid evaluation report to the Bank is required
prior to delivery of a withdrawal application, or if a
Special Account is used, prior to its first
replenishment application. These provisions do not
apply if Statements of Expenditures are used,
whereby the evaluation and other documents are
kept by the Borrower, subject to future review by the
Bank.
(g) Review by the Bank: Upon receipt by the Bank, all

contracts subject to prior review will be reviewed.
Borrowers may be requested to provide additional
information and justification for the recommendations. The
Bank will not contact bidders. However, it may request the
Borrower to do so for necessary clarifications. When the
Bank is satisfied with the evaluation of bids and
recommendations of award, a “no-objection” written
communication will be issued by the Bank official
designated for such correspondence.
- 125 -
For contracts subject to post review, any doubts about the

justification for award should be raised with the Bank prior to
award signing. Borrowers should ensure that all
correspondence received from bidders concerning
evaluation has been taken into account. The Bank does not
finance contracts that have not been procured in
accordance with the loan agreement.20
(h) Award of Contract: Bid securities of unsuccessful bidders

should be returned promptly after award has been made.
However, if contract effectiveness is contingent on the
receipt of a performance security or other condition, the
Borrower may consider seeking an appropriate extension of
time for the bid validity and the accompanying bid security of
the next two lowest bidders.
As mentioned in the Preface, upon confirmation by the

Borrower that the award has been made, the Bank is
authorized to publish a description of the contract, the name
and nationality of the contract awardee, and the contract
price. Any further information on the bids or on their
evaluation, including the bid evaluation report, is held in
confidence by the Bank. Unsuccessful bidders are allowed
under the Guidelines (Appendix 4, para. 15) to seek a
debriefing with the Borrower, and, additionally, with the
Bank. In anticipation of this and/or any post reviews by the
Bank, the Borrower should ensure that bidding documents
and evaluations are securely stored.
20
If funds from the loan have already been disbursed, the Bank may seek reimbursement. Refer to
Guidelines para. 1.13 and Appendix 4, para. 3.
- 126 -
Annex II. Bid Opening Checklist

(To be filled out for each bid as it is read out)
Contract Reference:
Bid Opening Date: Time:
Name of Bidder:
(a) Is outer envelope of bid sealed?
(b) Is bid form completed and signed?
(c) Expiration date of bid:
(d) Is documentary authority for signing enclosed?
(e) Amount of bid security (if required): (state currency)
(f) Describe any “Substitution,” “Withdrawal,” or “Modification” submitted
(g) Describe any alternative bid made:
(h) Describe any discounts or modifications offered:
(i) Additional comments:21
(j) Name of bidder or representative present:
(k) Total bid price: (list currencies and amounts or percentages)22
Signature of responsible official: Date:
21
Read out and record model numbers of equipment.
22
If bid is for a package of contracts, the price for each lot or item should be read out.
- 127 -
Annex III. Preliminary Examination
Bidder Verification Eligibility Bid Security Completene Substantial Acceptance for

ss of Bid Responsivene Detailed
ss Examination
Bidder A Yes Yes1 Yes Yes Yes Yes
Bidder B No2 Yes Yes Yes Yes3 No
Bidder C Yes4 Yes Yes Yes Yes Yes
Bidder D Yes Yes No5 No6 Yes No
Bidder E Yes No7 No8 Yes Yes No
Bidder F Yes Yes Yes Yes Yes Yes
Bidder G Yes Yes Yes Yes Yes Yes
Bidder H Yes Yes Yes Yes Yes9 Yes
1
Bidder is partly owned (25 percent) by government (of Borrower). It operates under commercial law and is
financially and managerially independent of government.
2
Joint venture agreement missing.
3
Requires 25 percent mobilization advance; bid document states maximum of 15 percent. Deviation is minor and
can be quantified.
4
Bidder prequalified as local agent; bid is joint obligation with parent company. Bid deemed acceptable because
increase in financial backing results.
5
Bid security not in freely convertible currency.
6
Does not include cost for required disposal of hazardous wastes found at the site.
7
Source of plant from non-eligible country.
8
Required validity period of security not met (8 weeks instead of 12 weeks).
9
Contains several initialed changes substituting ISO standards in the specifications with DIN standards. This is
acceptable to the Engineer-in-Charge.
- 128 -
Annex iV. Bid Evaluation Summary Checklist
1. Attach bid opening record, if not previously submitted (refer to footnote 1,

Annex I).
2. Explain any inconsistencies between prices and modifications to prices

read out at bid opening (and written into the record) and presented in
Table 4.
3. Provide details on eliminating any bids during preliminary examination

(Table 5). Copy select pages from bids, as desirable, to show examples of
objectionable features.
4. If provisional sums in Table 6 vary among bidders, explain. Explain any

substantial corrections for computational errors that may affect the ranking
of bidders.
5. Provide a copy of the rates requested for Table 7 and used in Tables 8 or
9.
6. The additions, adjustments, and priced deviations in Table 10 require

detailed explanations where they may affect the ranking of bidders.
7. Eligibility for domestic preference as indicated in Tables 11 or 12 must be

verified if the ranking of bids is affected. Provide details in an attachment.
Exclusions to the calculations for preference should be explained if
similarly significant.
8. Explain any cross-discount (para. 7(b)) not read out and recorded at bid
opening. In addition, attach copies of any evaluation reports for the other
related contracts awarded to the same bidder.
9. Provide detailed reasons for refusing to award a contract to a party other

than the lowest evaluated bidder (para. 7(c)).
10. If an alternative bid is accepted, provide a detailed explanation of the

reasons for its acceptance, addressing issues of timeliness, performance,
and cost implications (para. 7(d)).
11. An attachment to Table 13 should explain adjustments to the price

provided on line 10. Explain any changes to scope of bid and contract
conditions.
12. Provide evidence of alternative insurance (see footnote 17, Annex I).
13. Attach copies of any correspondence from bidders that raise objections to
the bidding and evaluation process, together with detailed responses.
14. Attach copies of any letters to bidders requesting clarifications. Provide

copies of responses.
- 129 -
15. Submit bid evaluation with separate evaluation report from consultant, if
one was commissioned.
16. Ensure that the bid evaluation report is double-checked, paginated, and
complete, and includes a Letter of Transmittal. The Bank will only review
reports that are sent to it by the proper authorities.
17. Send by courier or by other swift means.
- 130 -
Annexure 2 to Chapter – VI
Annexure - 2
Annexure 2 to Chapter - VI
Table of Contents
FORMATS
1. Criteria for pre or post qualification (for India conditions) 36
2. Minutes of Pre-Bid Meeting
3. Minutes of Bid Opening – (NCB)
4. Record of Bid Opening – (NCB)
5. Bid Evaluation Report for Civil Work – (NCB)
6. Assessment of Offers
7. Comparative Statements of responsive offers
8. Bid Evaluation Report for Goods & equipment– (NCB)
9. Assessment of Bids
10. Brief Details of Assumptions made in Evaluation
11. Comparative Statement of responsive offers
12. Details of Recommended Offer 1
13. Section VII – A : Qualification Requirements
14. Proforma for Performance Statement
15. Seeking Bank’s clearance for Rejection of Bids & re-invitation
- 131 -
CRITERIA FOR PRE OR POST QUALIFICATION

(For Indian conditions)
1. CIVIL WORKS:
A. The applicant/bidder in his/its name must be a well established civil

engineering contractor with three years experience and capability in
construction of
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
B. To be qualified for award of the Contract, bidders shall provide evidence

satisfactory to the Employer
of their capability and adequacy of resources to carry out the Contract
effectively. Bids shall include the following information:
(i) copies of original documents defining the constitution or legal

status, place of registration and principal place of business, written
power of attorney of the signatory of the bid to commit the bidder;
(ii) total annual turnover expressed as total volume of construction
work performed in each of the last five years;
(iii) performance as prime contractor on works of a similar nature and
volume over the last five years and details of other works in hand
and contractual commitment; clients who may be contacted for
further information on these contracts;
(iv) major items for construction equipment proposed for carrying out
the Contract.
(v) the qualifications and experience of key site management and
technical personnel proposed for administration and execution of
the Contract, both on and off site;
(vi) proposals for subcontracting elements of the Works amounting to
more than 10 percent of the Bid Price for each element;
(vii) reports on the financial standing of the bidder/applicant including
profit and loss statements, balance sheets and auditor's reports for
the past five years, and an estimated financial projection for the
next two years;
(viii) evidence of access to lines of credit, and availability of other
financial resources;
(ix) authority to seek references from the bidder's bankers;
(x) information regarding any current litigation in which the bidder is
involved, the parties concerned, and disputed amount;
(xi) a statement establishing that the bidder/applicant (including all
members of a joint venture) and his subcontractors are not
associated, nor have been associated in the past, directly or
indirectly, with the consultant or any other entity having prepared
the design, specifications, and other bidding documents for the
project or being proposed as Engineer for the Contract; and
- 132 -
(xii) a general description on the approach to the construction methods,

technologies proposed, type and schedule of equipment proposed
to be used, etc. for ensuing completion of the work within the
desired timeframe (for pre-qualification only).
Or
(xiii) the proposed methodology of construction, backed with their
construction equipment planning and deployment, duty supported
with broad calculations and quality control procedures proposed to
be adopted, justifying their capability of achieving the completion of
work as per milestones specified within the stipulated period of
completion (for post-qualification only).
C. To qualify for award of the Contract, each bidder or applicant in its/their

name should have in the last five years:
(i) achieved a minimum annual financial turnover (in all classes of civil
works construction only) at least of value Rs. , M in anyone year
(two and a half times the estimated annual cash flow in the
contract);
(ii) satisfactorily completed (not less than 90% of contract value) as a

prime contractor, civil works of similar nature (………………) of
value not less than Rs. M (50%of proposed contract) during the
last five years is not more than one contract;
(iii) The contractor or his identified sub-contractor should possess

required valid electrical license for executing the building
electrification works and should have executed similar electrical
works totalling R………………………………….** . in any one year.
(iv) The contractor or his identified sub-contractor should possess

required valid license for executing the water supply/sanitary
engineering works and should have executed similar water supply!
sanitary engineering works totalling Rupees ** in anyone year. ** at
least 50% of the estimated value executed in anyone year the
following quantities of work:
(v) cement concrete work of not less than cum in any year (50% of the
expected peak rate of construction); each work in both excavation
and embankment (combined quantities) of not less than cum in
anyone year (80% of the expected peak rate of construction);
(specify additional criteria as required) (For domestic bidders,
turnover as well as cost of completed works of previous years shall
be given weightage at the rate of 10% per year based on the rupee
value to bring them to price level).
- 133 -
D. Each applicant should further demonstrate;
(i) availability (either owned or leased or by procurement against

mobilization advances) of key and critical equipment for this work
as detailed below (list the details of minimum critical equipment
required);
(ii) availability for this work of a project manager with no less than five
years experience in construction of similar civil engineering works
and other key personnel with adequate experience at required; and
(iii) that they have access in financial resources sufficient in a contract

cash flow for three months at the peak construction period, namely,
Rs. M (credit lines or letter of credit or solvency certificate from
banks, etc.)
E. To qualify for a package of contracts, the bidder must demonstrate having

experience and resources sufficient to meet the aggregate of the qualifying
criteria for the individual contracts included in the IFB, which make up the
package in question.
F Sub-contractors' experience and resources shall not be taken into account

in determining the bidder's compliance with the qualifying criteria except to
the extent stated in para D (iii) and (iv) above.
G. Bidders who meet the minimum qualification criteria will be qualified only if
their available bid capacity is more than the total estimated cost of the
works, for which he has offered his bid. The available bid capacity will be
calculated as under:
A = Maximum value of Civil Engineering works executed in anyone year

during the last five years (updated to the current price level) which will take
into account the completed as well as works in progress;
B = Value at current price level of the existing commitments and on-going

works to be completed during the next years (period of completion of
works for which bids are invited); and
C = Number of years prescribed for completion of the works for which the
bids are invited.
Note: The statements showing the value of existing commitments and on-
going works as well as the stipulated period of completion remaining for
each of the works listed should be countersigned by the Engineer- in-
charge, not below the rank of Executive Engineer. In the case of a joint
Venture, reference A and B would be determined based on details
pertaining to such partners who propose to undertake physical execution
of works and in proportion to their participation in the joint Venture.
- 134 -
H. Even though the applicants meet the above criteria, they are subject to be
disqualified if they have:
made misleading or false representations in the form, statements and

attachments submitted in proof of the qualification requirements;
and/or
record of poor performance such as abandoning the work, not

properly completing the contract, inordinate delays in completion,
litigation history, or financial failures etc.
- 135 -
MINUTES OF PRE-BID MEETING

Loan No./Credit No. : 4161-IN and 4162-IN
1. Package Number :
2. Description of Item/work :
3. Estimated cost :
4. Date of Issue of IFB :
5. Mode of Procurement :
6. Deadline for submission of bids : Date : Time:
7. Prebid meeting Date. : Time.

Venue:
In pursuance of paragraph ………of the IFB No. ……………… dated, the

prebid was held on ……………………………. At………………………. In
the office of ………………Under the chairmanship of
Mr…………………………. (name and designation)
The following officials of the Purchaser/Employer and prospective bidders

or their representatives attended the meeting:
Representing the Purchaser/Employer
Sl.No.Name Designation
1.
2.
3.
4.
5.
6.
- 136 -
Representing the prospective bidders
S1.No. Name Designation Representing

1
2.
3.
4.
5.
6.
The issues raised by the various prospective bidders and the responses
given thereof are briefly recorded here under:
S1.No. Query/Issue* Reference to BD Response
Technical Aspects
2.
3.
4.
Commercial aspects:
2.
3.
4.
Signature of the Chairman
*Do not mention the name of the bidder who made the query
- 137 -
MINUTES OF BID OPENING-(NCB)

Basic Data Sheet
1. Package Number :
2. Item of Goods/works description :
3. Estimated Cost :
4. Date of Issue of IFB :
5. (a) Deadline for submission of bids : Date:……….Time: ……..hours
(b) Bid opening time and date : Date:…… …….Time: ……..hours
6. Number of bids received :
7. Bid validity expires on:
8. Any other data:
Signature of Bid opening officer……………………
Name of Bid opening officer……………………
Designation of Bid opening officer…………………
- 138 -
RECORD OF BID OPENING-(NCB)

Package Number …………………..
Description of Item of goods, equipment/work: ………………………………
………………………………….…………………………………………………………...
1. The following bids were received by closing date and time i.e…………….
hours on ………….(date) were publicly opened in the presence of the bidders'
representatives listed below at ………………..hours on ……………..(date)
Sl.No Name of the Bid Validity Form of Bid Discount

Bidder Security of Bid Bid Amount offered if
Amount Security Security any
1.
2.
3.
4.
5.
6.
2.The following representatives of bidders are present during the bid opening:
Sl.No Name of representative Signature Name of the Name of

Bidder Manufacturer
if different from
Bidder
1.
2.
3.
4.
5.
6.
3. Complaints/objections raised if any:
Signature, name and designation of Bid opening officer:
- 139 -
SUGGESTED FORMAT OF BID EVALUATION REPORT FOR CIVIL WORKS-

(NCB)
1. Scope of contract and approximate cost:

o Outline brief description of works covered by invitation.
o Furnisr. estimated cost at the time of appraisal and the actual cost
for the proposed contract.
2. Bidding document:
o Approval by World Bank/Govt.
o Variations from the approved document, if any. -Specifications and
drawings (approval).
o Implementation schedule and stipulated time for completion.
o Important bidding conditions, such as, price adjustment, if any, etc.
.1 (Enclose copy of bidding document with amendments if any, if
not sent earlier, Annexure I).
3. Bid invitation process:

Furnish the following details and discuss:
Bid invitation advertisement in national press, names of news papers
and dates of publication Dates the bidding document was available for
sale.
Number of bidders who purchased the bidding documents and their
nationality.
Prebid conference, minutes of meeting and resulting amendments, if
any.
Date and time of public bid opening, attendance, highlights of the bid
opening meeting, etc. (Enclose copies of Bid Invitation, Prebid
minutes, minutes of bid opening -Annexures II, III& IV).
4. Bid response:
State number of offers received and the nationality.
Furnish details of offers received:
(i) In time
(ii) Late
Total
_________________
Furnish table of bid prices as read but at the bid opening meeting and
as converted (in increasing order of bid value):
Sl No. Name of bidder Nationality Bid price as read out Remarks
- 140 -
5. Clarifications obtained, if any.
6. Preliminary examination of bids:

Discuss preliminary examination for arithmetical errors,
completeness, legal validity, bid validity, bid security and substantial
responsiveness to commercial and technical aspects of bidding
documents.
Furnish details of all bids in Annexure -V.
List the bids rejected as non-responsive.
Sl No. Name of bidder Bid price Brief reasons for rejection
7. Evaluation of substantially responsive bidders:

State evaluation criteria and methodology cross referencing to bid
documents.
Discuss conditions if any and loading of bid prices.
Prepare evaluation table showing the rankings as unders:
Rank Bidder Bid price
1.
2.
3.
(Furnish details as in Annexure VI)

Discussion of offers:
• Determination of lowest evaluated responsive bid. .
• Comments on unbalanced item bids, if any.
8. Post-qualification/Verification for pre-qualified bidders:
State criteria if any outlined in the bid document.

Furnish actual qualification of selected bidder and determine whether
the selected lowest evaluated .responsive bidder is qualified to
satisfactorily perform the contract.
Discuss the proposed construction methodology of the selected
bidder and comment on its acceptability.
If the determination is negative, bid of the lowest bidder will have to
be rejected and the next lowest evaluated bid considered to make a
similar determination of bidder's capability to perform satisfactorily.
9. Recommendations:
Furnish important features of bid recommended for award such as :
o Advances
o Price adjustments, if any
o Performance security
o Additional security proposed for unbalanced bids, if any
o Bid validity
- 141 -
o Stipulated period of completion

o Other important terms and conditions
10. Value of contract proposed for approval:
(Enclose checklist duly filled)
Encl: Signature of Evaluating Officer
- 142 -
ASSESSMENT OF OFFERS
Name of bidder :
Bid price :
Credentials :.
Commercial assessment :
Capacity-cum-capability assessment :
(Post qualification/Pre qualification) :
Decision on responsiveness with reasons :
{Repeat for all bidders)
- 143 -
COMPARATIVE STATEMENTS OF RESPONSIVE OFFERS
_____________________________________________________________________________
Sl. No. Item of Schedule Quantity Unit Estimate Bidder 1 Bidder 1
_________ _________ _______
Rate Value Rate Value Rate Value
_____________________________________________________________________________
____________________________________________________________________________
Grand Total :
____________________________________________________________________________
- 144 -
SUGGESTED FORMAT OF BID EVALUATION REPORT FOR GOODS &

EQUIPMENT (NCB)
1. Scope of contract and approximate cost:

-Outline brief description of Goods and service covered by the invitation.
-Furnish estimated cost at the time of appraisal and the actual cost for the
proposed contract.
2. Bidding document:
Briefly discuss and indicate:
-Details of approval by world Bank/Govt.
-Variations of the approved document, if any -Specifications (approval
reference, if any) -Requirement of accessories/space, if any -Delivery
requirements
-Important bidding conditions such as: -price adjustment -loading for
(a) delivery schedule
(b) payments schedule
(c) performance and productivity
(d) operating and maintenance costs
[Enclose copy of bidding document and amendments if any, if not sent
earlier (Annexure I)]
3. Bid invitation process: Furnish the following details:

-Date of publication of general procurement notice
-Bid invitation advertisement in national News papers and dates of
publication -Period in which the bidding documents were made available
for sale
-Number of firms who purchased the bidding documents and their
nationality -Date of closing and extensions, if any
-Pre-bid conference, minutes of meeting and resulting amendments, if any
-Date and time of public bid opening, attendance, highlights of the bid
opening meeting
[Enclose copies of Prebid minutes (Annexure II) and minutes of bid
opening (Annexure III)]
4. Bid response:
-Same number of offers received and the nationality
-Furnish details of offers received:
(i) In time
(ii) Late
Total
-Furnish Table of bid prices as read out at bid opening:

____________________________________________________________________________
SI.No. Name of bidder Nationality Bid price as read out Remarks
___________________________________________________________________________
____________________________________________________________________________
- 145 -
5. Clarifications obtained, if any
6. Preliminary examinations of bids:

-Discuss preliminary examination for arithmetical errors, completeness,
legal validity, bid validity, bid security and substantial responsiveness to
commercial and technical aspects of bidding document
-List arithmetical errors and corrected bid prices
-Furnish details of all bids in Annexure IV
-List the bids rejected as non-responsive.
_____________________________________________________________________________
SI.No. Name of bidder Bid price Brief Reasons
_____________________________________________________________________________
7. Evaluation of substantially responsive bidder:

-State evaluation criteria, methodology cross referencing to bid
documents, assumptions, if any, made .in evaluation (Annexure V).
-Discuss briefly offers and adjustment, if any, for:
-Commercial aspects:
• omissions
• .inland transportation.
• delivlery
• deviation in payment schedule
• spare parts
• operation and maintenance
• performance and productivity etc.
-Technical criteria:
• efficiency
• productivity .
• training etc.
-Prepare evaluation table showing all adjustments and ranking as under:
Rank Name of bidder/ Evaluated FOR

Manufacturer/Agent destination price
1
2
3
(Details in Annexure VI)
-Brief discussion of offers
-Determination of the lowest evaluated responsive bidder
8. Post qualification:
-State criteria, if any, outlined in the bid document.
- 146 -
-Discuss actual qualification of selected bidder to demonstrate whether the

selected lowest evaluated responsive bidder is qualified to satisfactorily
perform the contract. (If the determination is negative, lowest bid will have
to be rejected and the next lowest evaluated bid considered for a similar
determination of bidder's capability to perform satisfactorily).
(Details in Annexure VII)
9. Recommendations:
-Furnish important features of recommended bid such as:
• .Bidders name
• Model, quantity and total bid price for:
-basic machine
-list of tools
-list of special accessories
-list of 2 years maintenance spares.
• Source of origin .Payment terms

• Agency commission.
• Delivery
• Inspection
• Insurance
• Freight
• Performance security
• Specifications
• Other important terms and conditions
-Date of expiry of validity of the selected bid

(Enclose contract information sheet of selected bidder, Annexure VIII)
Signature of Evaluating Officer
Signature of Competent Authority
- 147 -
NCB
ASSESSMENT OF BIDS
S. No.
Name of bidder
Manufacturer/Agent Model offered
Bid price
Credentials
Commercial assessment Technical assessment
Decision on responsiveness with reasons
(repeat for each bid serially)
- 148 -
NCB
BRIEF DETAILS OF ASSUMPTIONS MADE IN EVALUATION
(a)
(b)
(c)
(d)
- 149 -
NCB
COMPARATIVE STATEMENT OF RESPONSIVE OFFERS
Price
_____________________________________
Items Bidder's Name Bidder's Name Bidder's
Name
Cost per unit (in Rs.)
(i) Exfactory price
(ii) Excise duty, if any
(iii) Packing & forwarding charges
(iv) Inland freight
(v) Insurance
(vi) Other charges, if any
(vii) Total unit cost as quoted
(viii) No. to be supplied
(ix) Total cost as quoted
(x) Delivery period offered
(xi) Delivery period loading
(xii) Payment terms loading
(xiii) Other loading
(xiv) Total evaluated price with loading
(xv) Ranking
- 150 -
NCB
DETAILS OF RECOMMENDED OFFER 1
Name of Bidder:……………………………………………..
Sl; No. Name of Item

Specification or Unit Qty. Rate Value
Part No.
____________________________________________________________________________
1. Basic item
2. List of Tools
3. List of special
accessories & spares
4. List of spares for 2-year

maintenance
_____________________________________
Total cost without duties
and taxes
_____________________________________
5. Duties and taxes

…………………
…………………
Total Cost:
____________________________________________________________________________
- 151 -
SECTION VII A
QUALIFICATION REQUIREMENTS
1. The bidder or the manufacturer whose product is offered by the bidder

must have manufactured and supplied satisfactorily similar equipment of
the type specified in each schedule of the Schedule of Requirements to
the extent of at least 25% of the quantity indicated against each schedule
under "See VI -Scheduled of Requirements" in anyone of the last five
calendar years and should be in use satisfactorily with no adverse report
for atleast two years on the date of bid opening.
2. `The bidder should, furnish the information on past supplies and

satisfactory performance in the proforma given under Section-VIII, Form 7.
3. Bidders shall invariably furnish documentary evidence (Client's certificate)

in support of the satisfactory operation of the equipment as specified
above.
4. The Bidder shall furnish data to support that he has the financial and
production capacity to perform the contract and complete the supplies
within the stipulated delivery period.
- 152 -
7. PROFORMA FOR PERFORMANCE STATEMENT

(for a period of last five years)
IFB No……………… Date of opening …………………Time ……….Hours……………
Name of Firm …………………………………………………………….
Order Placed Order No. Description Value of Date of comple- Remarks Has the
By (full address and Date and quantity Order -tion of delivery indicating equipment
Of Purchaser) of ordered As per Actual reasons for been satisfy
equipment contract late delivery, actorily
if any -functioning?
(Attach
a certificate
from the
Purchaser
/Consignee)
1 2 3 4 5 6 7
____________________________________________________________________________________
________________________________________________________________________
Signature and seal of the Bidder

…………………………………..
…………………………………..
- 153 -
FORMAT FOR SEEKING BANK'S CLEARANCE FOR REJECTION OF BIDS

AND REINVITATION
1. Credit Number : 4161-IN and 4162-IN
2. Name of the Project : National Agricultural Innovation Project
3. Name of the sub-project :
4. Package No. :
5. Description of Works :
6. Estimated Cost :
7. Publication of lFB :
8. Date the documents were :

made available for sale :
9. Date of Bid Opening :
10. Number of Bids received :
11 . Bids rejected as non-responsive :
Sl.No. Name of Bidder Bid Price Brief reasons for rejection

(Rs.)
12. List of substantially responsive :

bids showing ranking
13. List of bids which meet the specified :

minimum qualification criteria
14. If the bids are being proposed for :

rejection due to higher rates, furnish
the following information
(a) Did you update the estimates for the :
current market rates for labour
and
materials (cement/steel, etc.) and actual :
leads of materials?
(b) If yes, indicate the update cost along :

` with break-up for each factor considered
- 154 -
(c) Did you identify the item or items which :

contributed to the major variation over
the updated estimates?
(d) Did you seek clarification including :

breakdown of unit rates for the items so
identified? If yes, what are the reasons
indicated by the bidder and what is your
determination on them?
15. Are there any other reason for rejection/ :

reinvitation? If so, state in brief
16. RECOMMENDATION FOR REJECTION/ :

REINVITATION OF BIDS
(a) In your view what are the reasons :
for high bid prices? (Please list)
(b) What measures you propose to take :

to ensure better competition and receive
competitive bid prices in such reinvitation?
(c) Do you propose any revision in the scope :

of work/change of specification/size of bid
package for such reinvitation. If yes, please
list your proposal along with reasons.
17. GENERAL
(Any other relevant information in support :

of your recommendation)
Signature :…………………………
Name :…………………….
Designation :………………………...
- 155 -
Annexure 3 to Chapter – VII
Annexure 3
TABLE OF CONTENTS
FORMATS
(a) Procurement of Goods & Equipment

1. Invitation for quotations for Supply of Goods & Equipment
under National Shopping Procedures (where evaluation of
all items is done together)
2. Format of Quotation
3. Invitation for Quotations for supply of Goods & Equipment
under National Shopping Procedures (where evaluation of
each items carried separately)
4. Supply Order
(b) Procurement of Civil Works under National Shopping Procedures

Civil Work
5. Invitation for quotations for Construction of Civil Works

6. Instruction to Bidders
7. Qualification Information
8. Quotation
9. Letter of Acceptance-cum-Notice to proceed with the work
10. Draft agreement form for construction through National
Shopping
11. Bill of Quantities
12. Format of Certificate
- 156 -
OFFICE OF ………………………………………………………………………………
………………………………………………………………………………………
INVITATlON FOR QUOTATlONS FOR SUPPLY OF GOODS AND EQUIPMENT

UNDER NATlONAL SHOPPING PROCEDURES
To:
M/s
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
Dear Sirs,
Sub: Invitation of quotation for supply of ………………………………………………

….…………………………………………………………………………………
1. Sealed competitive quotations are invited by the undersigned for the

following items of goods/equipment.
SL.No Brief Brief Quantity Delivery Place of

description of Specifications Period delivery
goods/
equipment
1
2
3
4
5
6
*Where ISI certification marked goods are available in market, procurement should
generally be limited to goods with those or equivalent marking only.
2. Government of India has received a Credit from World Bank in various

currencies equivalent to US$ …………………..towards the cost of National
Agricultural Innovation Project and intents to apply part of the proceeds of
this credit to eligible payments under the contract for which this invitation
for quotation is issued.
3. `Quoted Price:
(a) The bidder shall quote for items in the format of quotation attached;
@ Note: Format to be used when evaluation is to be done for

all the items put together.
(b) All duties, taxes and other levies payable by the bidder (other than
Sales tax on the finished goods) shall be included in the item rate.
Sales tax if any should be quoted separately.
- 157 -
(c) The rates quoted for each item shall be fixed for the duration of the
contract and shall not be subject to adjustment.
(d) Rates or partial quantity of an item is not acceptable.
(e) Corrections if any shall be made by crossing out, initialling, dating

and rewriting.
(f) Telex or Facsimile quotations are not acceptable.
4. Each bidder must submit only one quotation.
5. Validity of quotations:
The quotation shall remain valid for a period not less than 45 days after
the deadline fixed for submission of quotations.
6. Evaluation of quotations:
The Purchaser will evaluate and compare the quotations determined to be
substantially responsive i.e., which are properly signed, and conform to the
terms and conditions and specifications in the following manner.
(a) The evaluation will be done excluding the sales tax. If the bidder
has included the sales tax in his quotation for the item rate, it will
treated as through it is exclusive of the sales tax and no down
loading of sales tax will be made;
(b) The evaluation would be done for all the items put together. The
items for which no rates have been quoted would be treated as zero
and the total amount would be computed accordingly. The bidder
who has quoted for partial quantity of anyone or more item(s) would
be treated as non- responsive. Purchaser will award the contract to
the responsive bidder whose total cost for all the items put together
is the lowest.
7. Award of contract:
(a) The Purchaser will award the contract to the bidder whose
quotation has been determined to be substantially responsive and
who has offered the lowest price as per para 6(b) above.
(b) The Purchaser reserves the right at the time of contract award to
increase or decrease the quantities of items indicated in para 2
above by 25% without any change in the unit price or any other
terms and conditions.
(c) The Purchaser prior to the expiration of the quotation validity period
will notify the bidder whose quotation is accepted of the award of
contract. The terms of the accepted offer shall be incorporated in
the Purchase order.
(d) Normal commercial warranty/guarantee shall be applicable to the
supplied goods;
(e) Payment shall be made immediately after the delivery of the goods
and their acceptance.
- 158 -
(f) Notwithstanding the above, the Purchaser reserves the right to

accept or reject any quotations and to cancel the bidding process
and reject all quotations at any time prior to the award of the
contract.
8. Last date and time of receipt of quotations:
You are requested to submit the sealed quotations superscribed on the

envelope as "Quotations for the supply of ……………………Due on
…………………..” latest by ……………hours on…………… (date).
We look forward to receiving your quotations and thank you for your
interest in this project.
Yours Sincerely,
(Purchaser)
Name ……..
Address……
Telephone No………
. Fax No……..
- 159 -
FORMAT OF QUOTATION
Sl.No Brief Brief Quantity Unit Unit Unit Total Total

description Specifications Rate Rate Amount Amount
of goods/ (Rs.) in (Rs.) in in
equipment Figures in Figures Words
Words
1
2
3
4
5
6
Gross total Cost: Rs…………………………………… (in figures)
Rs ……………………………………………………………………….. (in words)
We agree to supply the above goods in accordance with the technical

specifications for a total contract price of Rs ……………(in figures) (Rs
…………………………………. (in words) within the period specified in the
Invitation for Quotations.
We also confirm that the normal commercial warranty/guarantee

…………………………..of months shall apply to the offered goods.
(Bidder)
Name : ……………………………………………
Signature : ……………………………………………
Date : ……………………………………………
- 160 -
OFFICE OF ………………………………………………………………………………
………………………………………………………………………………………………
INVITATlON FOR QUOTATlONS FOR SUPPLY OF GOODS AND EQUIPMENT

UNDER NATlONAL SHOPPING PROCEDURES
To:
M/s
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
Dear Sirs,
Sub: Invitation of quotation for supply of …………………………………

……………………………………………………………………………………
1. Sealed competitive quotations are invited by the undersigned for the

following items of goods/equipment.
SL.No Brief description Brief Quantity Delivery Place of

of goods/ Specifications Period delivery
equipment
1
2
3
4
5
6
*Where ISI certification marked goods are available in market,

procurement should generally be limited to goods with those or equivalent
marking only.
2. Government of India has received a Credit from World Bank in various

currencies equivalent to US$ ……….towards the cost of National
Agricultural Innovation Project and intents to apply part of the proceeds of
this credit to eligible payments under the contract for which this invitation
for quotation is issued.
3. `Quoted Price:
(a) The bidder shall quote for items in the format of quotation attached;
@ Note: Format to be used when evaluation is to be done for each

item separately.
- 161 -
(b) All duties, taxes and other levies payable by the bidder (other than
Sales tax on the finished goods) shall be included in the item rate.
Sales tax if any should be quoted separately.
(c) The rates quoted for each item shall be fixed for the duration of the
contract and shall not be subject to adjustment.
(d) Rates or partial quantity of an item is not acceptable.
(e) Corrections if any shall be made by crossing out, initialing, dating
and rewriting.
(f) Telex or Facsimile quotations are not acceptable.
4. Each bidder must submit only one quotation.
5. Validity of quotations:
The quotation shall remain valid for a period not less than 45 days after
the deadline fIXed for submission of quotations.
6. Evaluation of quotations:
The Purchaser will evaluate and compare the quotations determined to be
substantially responsive i.e., which are properly signed, and conform to the
terms and conditions and specifications in the following manner.
(a) The evaluation will be done excluding the sales tax. If the bidder
has included the sales tax in his quotation for the item rate, it will
treated as through it is exclusive of the sales tax and no down
loading of sales tax will be made;
(b) The evaluation would be done for each item separately. The items
for which no rates have been quoted would be treated as zero and
the total amount would be computed accordingly. The bidder who
has quoted for partial quantity of anyone or more item(s) would be
treated as non- responsive. Purchaser will award the contract to the
responsive bidder whose total cost for all the items put together is
the lowest.
7. Award of contract:
(a) The Purchaser will award the contract to the bidder whose
quotation has been determined to be substantially responsive and
who has offered the lowest price as per para 6(b) above.
(b) The Purchaser reserves the right at the time of contract award to
increase or decrease the quantities of items indicated in para 2
above by 25% without any change in the unit price or any other
terms and conditions.
(c) The Purchaser prior to the expiration of the quotation validity period
will notify the bidder whose quotation is accepted of the award of
contract. The terms of the accepted offer shall be incorporated in
the Purchase order.
(d) Normal commercial warranty/guarantee shall be applicable to the
supplied goods;
(e) Payment shall be made immediately after the delivery of the goods
and their acceptance.
- 162 -
(f) Notwithstanding the above, the Purchaser reserves the right to

accept or reject any quotations and to cancel the bidding process
and reject all quotations at any time prior to the award of the
contract.
8. Last date and time of receipt of quotations:
You are requested to submit the sealed quotations superscribed on the

envelope as "Quotations for the supply of ……………………Due on
…………………..” latest by ……………hours on…………… (date).
We look forward to receiving your quotations and thank you for your
Yours Sincerely,
(Purchaser)
Name ……..
Address……
Telephone No………
. Fax No……..
- 163 -
OFFICE OF ………………………………………………………………………………
……………………………………………………………………………………………
SUPPLY ORDER
To:
M/s
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
Dear Sirs,
Sub: Supply of …………………………………………………………

……………………………………………………………………………
Ref: Your quotation dated

…………………………………………………………
1. Please refer your quotation of ……………………………(Date) for the

supply of ……………………………and supply the following
goods/equipment at the rates specified against each and as per the
specifications and terms & conditions specified hereunder:
SL.No Brief Specifications Quantity Unit Total

description of to be Rate Price
goods/ supplied (Rs.) (Rs.)
equipment
1
2
3
4
5
6
2. Delivery Period : ……….days from the date of issue of this supply order.
3. Place of delivery ……………………………………………………
4. To whom to be delivered: …………………………………………
5. Sales tax if any shall be extra as per prevailing and applicable rates.
6. Warranty/Guarantee period shall be……….. days of delivery and

acceptance.
- 164 -
7. Payment shall be made within ………days of delivery; and acceptance of

the goods/equipment.
8. Other terms and conditions if any.

(Purchaser)
Date:
Place: Name: …………………………….
Designation:……………………….
Signature :………………………….
- 165 -
PROCUREMENT OF CIVIL WORKS

UNDER
NATIONAL SHOPPING PROCEDURES
(For Works valued less than equivalent $50,000

each)
- 166 -
INVITATION FOR QUOTATIONS FOR CONSTRUCTION OF

CIVIL WO'RKS UNDER SHOPPING PROCEDURES
To:
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
Dear Sirs,
Sub: INVITATION FOR QUOTATIONS FOR CONSTRUCTIONS

…….……………………………………………………………………
1. You are invited to submit your most competitive quotation as a period

below or above the estimate rate for the following works ;-
Brief Description Approximate value Period of

of the Works of Works (Rs.) Completion
2. Government of India has received a credit from the International

Development Association (IDA) in various currencies equivalent to
US$.200 millions towards the cost of the National Agricultural Innovation
Project intends to apply part of the proceeds of this credit to eligible
payments under the contract for which invitation for quotations is issued.
3!. The National Agricultural Innovation Project in…………………… state is

being implemented by …………………………………... which is an
autonomous society registered under the Societies Registration Act.
4. To assist you in the preparation of your quotation, we are enclosing the

following:
(i) Layout Drawings of the works;

(ii) Structural Details;
(iii) Detailed Bill of Quantities, with estimated rates and prices;
(iv) Technical Specifications;
(v) Instructions to Bidders (in two sections);
(vi) Draft Contract Agreement format which will be used for finalizing
the agreement for this Contract.
5. You are requested to provide your offer latest by ..…hrs. on …………..
- 167 -
6. Quotations will be opened in the presence of Bidders or their

representatives who choose to attend at ……AM/PM on ……………….in
the office of ………………….
7. We look forward to receiving your quotations and thank you for your
(Employer)
Name :…………………………….
Address :…………………………..
Tel. No.:……………………………
Fax No:…………………………….
_________________
! Delete if inapplicable
- 168 -
INSTRUCTION TO BIDDERS
SECTION –A
1. Scope of Works
The ……………………………………….(Employer) invites quotations for

the construction of works as detailed in the table given below:
Brief Description Approximate value Period of

of the Works of Works (Rs.) Completion
The successful bidder will be expected to complete the works by the

intended completion date specified above.
2. Qualification of the bidder: The bidder shall provide qualification

information which shall include:-
(a) Total monetary value of construction works performed for each year
of the last 3 years;
(b) income tax clearance certificate from the concerned IT circle;
(c) report on his financial standing; and
(d) details of any litigation, current or during the last 3 years in which
the bidder is involved, the parties concerned and disputed amount
in each case.
3. To qualify for award of the contract the bidder
(a) should have satisfactorily completed as a prime contractor at least

one similar work of value not less than Rs.400,000 in the last three
years;
(b) . *should possess valid electrical license for executing building
electrification works (in the event of the works being sub-contracted,
the sub-contractor should have the necessary license);
(c) .*should possess required valid license for executing the water
supply/sanitary works (in the event of the works being sub-
contracted, the sub-contractor should have necessary license).
4. Bid Price
a) The contract shall be for the whole works as described in the Bill of
quantities, drawings and technical specifications. Corrections, if
any, shall be made by crossing out, initialing, dating and rewriting.
b) All duties, taxes and other levies payable by the contractor under
the contract shall be included in the total price.
c) The rates quoted by the bidder shall be fixed for the duration of the
contract and shall not be subject to adjustment on any account.
- 169 -
5. Submission of Quotations
5.1 The bidder is advised to visit the site of works at his own expense and
obtain all information that may be necessary for preparing the quotation.
5.2 Each bidder shall submit only one quotation.
5.3 The quotation submitted by the bidder shall comprise the following:-
(a) Quotation in the format given in Section B.
(b) Signed Bill of Quantities; and
(c) Qualification information form given in Section B duly completed.
___________________
"Modify appropriately for the works for which quotations are being invited.
5.4 The bidder shall seal the quotation in an envelope addressed to the
…………………(Purchaser). The envelope will also bear the following
identification:-
* Quotation for ……………………………..(Name of the Contact)
* Do not open before …………….(Time and date of quotation opening).
5.5 Quotations must be received in the office of the ……………………

(Employer) not later than the time and date given in the letter of invitation.
If the specified date is declared; a holiday, quotations shall be received
upto the appointed time on the next working day.
5.6 Any quotation received by the …………….(Employer) after the deadline for
submission of quotations will be rejected and returned unopened to the
bidder.
6. Validity of Quotation
Quotation shall remain valid for a period not less than45 days after the
deadline date specified for submission.
7. Opening of Quotations.
Quotations will be opened in the presence of bidders or their
representatives who choose to attend on the date and time and at the
place specified in the letter of invitation.
8. Information relating to evaluation of quotations and recommendations for

the .award of contract shall not be disclosed to bidders or any other
persons not officially concerned with the process until the award to the
successful bidder is announced.
9. Evaluation of Quotations
The Employer will evaluate and compare the quotations determined to be
substantially responsive i.e. which
(a) meet the qualification criteria specified in clause 3 above;
(b) are properly signed; and
(c) conform to the terms and conditions, specifications and drawings
without material deviations.
- 170 -
10. Award of contract

The Employer will award the contract to the bidder whose quotation has
been determined to be substantially responsive and who has offered the
lowest evaluated quotation price and who meets the specified qualification
criteria.
10.1 Notwithstanding the above, the Employer reserves the right to accept: or
reject any quotations and to cancel the bidding process and reject all
quotations at any time prior to .he award of contract.
10.2 The bidder whose bid is accepted will be notified of the award of contract
by the Employer prior to expiration of the quotation validity period.
11. Performance Security

Within 15 days of receiving letter of acceptance, the successful bidder
shall deliver to the…………. (Employer) the performance security (either a
bank guarantee or a bank draft in favour of the Employer for an amount
equivalent of 3% of the contract price. The Performance Security shall be
valid till the expiry of the period of maintenance of the work, specified in
clause 12. 1
12. Period of Maintenance

The "Period of Maintenance" for the work is six .months from the date of
taking over possession or one full monsoon season whichever occurs
later. During the period of maintenance, the contractor will be responsible
for rectifying any defects in construction free of cost to the Employer.
13. Purchase of all construction materials including cement and steel as per
the specifications (ISI certification marked goods wherever available) shall
be the responsibility of the contractor.
- 171 -
SECTION-B
1. Format for Qualification information.
2. Format for Submission of Quotation.
3. Format of Letter of Acceptance.
- 172 -
QUALIFICATION INFORMATION
1. For Individual Bidders
1.1 Principal place of business: …………………………………

Power of attorney of signatory of Quotation.
[Attach copy]
1.2 Total value of Civil Engineering 20 …….…………….

construction work performed in the last 20 …….…………….
three years (in Rs. Lakhs) 20 …….…………….
1.3 Work performed as prime contractor (in the same name) on works of a
similar nature over the last three years.
Project Name of Description Contract Value of Date Stipulated Actual Remarks

Name Employer of work No. contract of period of date of explaining
Issue completion completi reasons
of on for delay
work and work
order completed
Existing commitments and on-going works:
Description of Place Contract Value of Stipulated Value of Anticipated

work & Date No.& Date Contract period of works date of
(Rs. lakh) completion *remaining completion
to be
completed
(1) (2) (3) (4) (5) (6) (7)
1.4 Proposed subcontracts and firms involved.

Section of Value of Subcontract Sub-contractor Experience in
the Works (name & address) similar works
* * * *
* * * *
* * * *
* * * *
*Enclose a certificate from Engineer concerned.
1.5 Evidence of access to financial resources to meet the qualification

requirements: cash in hand, lines of credit, etc. List them below and attach
copies of support documents.
- 173 -
1.6 Name, address, and telephone, telex, and fax numbers of the Bidders'
bankers who may provide references if contacted by the Employer.
1.7 Information on litigation history in which the Bidder is involved.
Other Employer Cause of Dispute Amount involved Remarks showing

Party(ies) present status
- 174 -
QUOTATION
*Description of the Works:
To:
Subject: Construction of ……………………………………………………………..
Ref.: Letter No…………………………. dated …………from ………………………
Sir,
We offer to execute the Works described in your letter referred to above in

accordance with the Conditions of Contract enclosed therewith at
…………………………….percentage above / below the estimated rates, i.e., for a
total Contract Price of -
Rs.** ……………………………………………………………….[in figures]
Rs. ………………………………………………………………….. [in words]
This quotation and your written acceptance of it shall constitute a binding contract
between us.
We understand that you are not bound to accept the lowest or any quotation you
receive.
We hereby confirm that this quotation is valid for 45 days as required in Clause 6
of the letter of invitation.
Yours faithfully,
Authorized Signature : …………………………………Date:……………….
Name & Title of Signatory: …………………………………………………….
Name of Bidder : ……………………………………………………….
Address : ……………………………………………………..
* To be filled in by the Employer before issue of the Letter of Invitation.

** To be filled in by the Bidder, together with his particulars and date of
submission at the bottom of this Form.
- 175 -
LETTER OF ACCEPTANCE CUM NOTICE TO

PROCEED WITH THE WORK
(LETTERHEAD OF THE EMPLOYER)
Dated:
To: ………………………………………[Name and address of the Contractor]
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………
Dear Sirs,
This is to notify you that Quotation dated ……………………….for

execution of the ………………………………………………………for the
contract price of
Rupees [amount in words and figures] are hereby accepted by us.
You are hereby requested to furnish Performance Security for an amount

of Rs…………………… (equivalent to 3% of the contract price) within 15
days of the receipt of the letter. The Performance Security in the form of
Bank Guarantee or a Bank draft in favour of
………………………(Employer) shall be valid till the expiry of the period of
maintenance i.e. upto. ……………………Failure to furnish the
Performance Security will entail cancellation of the
Award of Contract.
You are also requested to sign the agreement form and proceed with the
work not later than …………………………………..under the instructions of
the Engineer,…………………………... and ensure its completion within the
contract period.
With the issuance of this acceptance letter and your furnishing the
Performance Security, .contract for the above said work stands concluded.
Yours faithfully,
Authorized Signature
Name and title of Signatory
- 176 -
Draft agreement form for construction through National Shopping

ARTICLES OF AGREEMENT
This deed of agreement is made in form of agreement on …………..
day………month…………….200 .between the ………..(Employer) or his authorized
representative (hereafter referred to as the first party) and……….(Name of the Contractor,
S/o………………resident of………………….(hereinafter referred to as the second party) to
execute the work of construction of……………….(hereinafter referred to as works) on the
following terms and conditions.
2. Cost of Contract
The total cost of the works (hereinafter referred to as the “total cost”) is Rs.……….as
reflected in Annexure-I.
3.1 Payments to the second party for the construction work will be released by the first party
in the following manner :-
On signing of agreement : __% of the total cost *

On reaching plinth level (First stage) : __% of the total cost
On reaching lintel level (second stage) : __% of the total cost
On reaching roof level (third stage0 : __% of the total cost
Plastering and completion of whole : __% of the total cost
(The above has been drafted for construction of school building modify this suitably for
other works)
3.2 Payment at each stage will be made by the first party:

(a) on the second party submitting an invoice for an equivalent amount;
(b) on certification of the invoice (except for the first instalment) by the engineer
nominated by the first party with respect to quality of works in the format in Annexure-
2; and
(c) upon proper and justified utilization of at least 50% of the previous instalment and
100% of any prior instalment.
4. Notice by Contractor to Engineer

The second party, on the works reaching each stage of construction, issues a notice to
the first party or the engineer nominated by the first party, to visit the site for certification
of stage completion. Within 15 days of the receipt of such notice, the first party or the
engineer nominated by it, will ensure issue of stage completion certificate after due
verification.
5. Completion time
The works should be completed in …………………..(months/weeks/days) from the date of
this Agreement. In exceptional circumstances, the time period in this clause may be
extended in writing by mutual consent of both the parties
6. If any of the compensation events mentioned below would prevent the work being
completed by the intended completion date, the first party will decide on the intended
completion date being extended by a suitable period:
a) The first party does not give access to the site or a part thereof by the agreed period.
b) The first party orders a delay or does not issue completed drawings, specifications or
instructions for executive of the work in time.
c) Ground conditions are substantially more adverse could reasonably have been
assumed before issue of letter of acceptance and from information provided to
second party or from visual inspection of the site.
d) Payments due to the second party are delayed without reason
e) Certification for stage completion of the work is delayed unreasonably.
- 177 -
7. Any willful delay on the part of the second party in completing the construction within the
stipulated period will render him liable to pay liquidated damages. @Rs.
*…………………per day which will be deducted from payments due to him. The first
party may cancel the contract and take recourse and take recourse to such other action
as deemed appropriate once the total amount of liquidated damages exceeds 2% of the
contract amount.
*To be modified appropriately depending on the nature of the work.
(Note: *The amount of liquidated damages per day should be determined at 0.05% of the
contract value of the works and indicated here).
8. Duties and responsibilities of the first Party
8.1 The first party shall be responsible for providing regular and frequent supervision and
guidance to the Second for carrying out the works as per qualification. This will include
written guidelines and regular site visit of the authorized personnel of the First Party, for
checking quality of material and construction to ensure that it is as per the norms.
8.2 The First Party shall supply 3 sets of drawings, specifications and guidelines to the
Second Party for the proposed works
8.3 Possession of the site will be handed over the Second Party within 10 days of signing of
the Agreement.
8.4 The Engineer or such other person as may be authorized by the First Party shall hold
meeting once in a month where the Second Party or his representative at site will submit
the latest information including progress report and difficulties if any, in the execution of
the work. The whole team may jointly inspect the site on a particular day to take stock of
activities.
8.5 The Engineer shall record his observations/instruction at the time of his site visit in a site
register maintained by the Second Party. The Second Party will carry out the instruction
and promptly rectify any deviation pointed out by the engineer. If the deviations are not
rectified, within the time specified in the Engineer’s notice, the first party as well as the
engineer nominated by it, may instruct stoppage or suspension of the construction. It
shall thereupon be open to the First Party or the engineer to have the deviation rectified
at the cost of the Second Party.
9. Duties and responsibilities of the Second Party
9.1 The Second Party shall :
a) take up the works and arrange for its completion within the time period stipulated in
clause 5;
b) employ suitable skilled persons to carry out the works
c) regularly supervise and monitor the progress of work;
d) abide by the technical suggestions/direction of supervisory personnel including
engineers etc. regarding building construction;
e) be responsible for bringing any discrepancy to the notice of the representative of the
first party and seek necessary clarification;
f) ensure that the work is carried out in accordance with specifications, drawings and
within the total of the contract amount without any cost escalation;
g) keep the first party informed about the progress of work;
h) be responsible for all security and watch and ward arrangement at site till handing
over the building to the First Party; and
i) assume full liability towards any insurance against loss of materials/cash, etc. or
workman disability compensation claims of the personnel deployed on the works as
third party claims.
10. Variations
The Second Party in accordance with the approved drawings and specifications shall
carry out the works. However, if, on account of site conditions or any other factors,
variations are considered necessary, the following procedure shall be followed:
- 178 -
A) the Second party shall provide the Engineer with a quotation for carrying out the
Variation when requested to do so by the Engineer. The Engineer shall assess the
quotation, which shall be given within seven days of the request before the Variation
is ordered.
B) If the quotation given by the Second Party is unreasonable, the Engineer may order
the Variation and made a change to the Contract Price which shall be based on
Engineer’s own forecast of the effects of the variation on the Contractor’s costs.
C) The Second Party shall not be entitled to additional payment for cost, which could
have been avoided by giving early warning.
11. Dispute settlement

If over the works, any dispute arises between the two parties relating to any aspects of
this Agreement, the parties shall first attempt to settle the dispute through mutual and
amicable consultation.
In the even of agreement not being reached, the matter will be referred for arbitration by a
Sole Arbitrator not below the level of retired Superintending Engineer, PWD to be
appointed by the first party. The Arbitration will be conducted in accordance with
The Arbitration and Conciliation Act, 1996. The decision of the Arbitrator shall be final
and binding on both the parties.
- 179 -
BILL OF QUANTITIES
Sl. No. Description of Qty. Unit Estimated cost Amount

work
In figure In words
(Rs.)
Gross Total Cost: Rs…………….
We agree to execute the works in accordance with the approved drawings and technical
specifications at…………………. Percentage above/below the estimated rates, i.e., for a total
contract price of Rs………………..(amount in figures) (Rs…………………………………………
amount in words.)
- 180 -
FORMAT OF CERTIFICATE
Certified that the works up to……………………………….level in respect of construction of

………………….at……………… have been executed in accordance with the approved drawing
and technical specification.
Signature……………………….
Name & Designation……………
(Official address)……………….
Place :
Date:
Office Seal
*modify appropriately depending on the nature of the work.
- 181 -
Annexure 4 to Chapter – X
Annexure 4
TABLE OF CONTENTS
1. The evaluation report includes five sections

2. Consultant Evaluation Report
The evaluation report includes five sections:
Section I. A Short Report Summarizing the Findings of the Technical

Evaluation;
Section II. Technical Evaluation Report—Forms;
Section III. A Short Report Summarizing the Findings of the Financial
Evaluation;
Section IV. Financial Evaluation Report—Forms;
Section V. Annexes:
Annex I. Individual Evaluations;
Annex II. Information Data Monitoring;
Annex III. Minutes of the Public Opening of the Financial
Proposals;
Annex IV. Copy of the Request for Proposals;
Annex V. Miscellaneous Annexes—Ad Hoc.
The report can be used for all methods of selection described in the
Guidelines. Though it mainly addresses Quality- and Cost-Based Selection, each
section contains a note indicating the data and forms that are to be provided for
the other methods of selection.
The evaluation notice is sent to the Bank after the technical evaluation is
completed. It includes only Form IIB and a short explanatory note to flag
important aspects of the evaluation. Following the Bank’s no-objection to the
evaluation notice, the Borrower prepares Forms IVC and IVD and a short
explanatory note to highlight the most important aspects of the financial
evaluation.
For complex, specialized assignments, Borrowers may wish to obtain

assistance from consultants to evaluate proposals. Such consultants or
individual consultants may be financed under the relevant loan, credit, or
grant.
- 182 -
CONSULTANT EVALUATION REPORT
Country [INDIA]
Project Name : National Agricultural Innovation Project
Loan/Credit No. : 4161-IN and 4162-IN
Title of Consulting Services [insert: title]
Date of Submission [insert: date]
- 183 -
Contents
Section I. Technical Evaluation Report—Text ............................................. 185
Section II. Technical Evaluation Report—Forms ......................................... 186

Form IIA. Technical Evaluation - Basic Data....................................... 187
Form IIB. Evaluation Summary ........................................................... 190
Form IIC. Individual Evaluations—Comparison ................................... 191
Section III. Financial Evaluation Report—Award Recommendation—

Text........................................................................................................ 193
Section IV. Financial Evaluation Report—Award Recommendation—

Forms .................................................................................................... 194
Form IVA. Financial Evaluation—Basic Data ....................................... 195
Form IVB. Adjustments—Currency Conversion—Evaluated Prices ..... 196
Form IVC. QCBS—Combined Technical/Financial Evaluation—
Award Recommendation ..................................................... 197
Form IVD. Fixed-Budget and Least-Cost Selection—Award
Recommendation ........................................................................ 198
Section V. Annexes........................................................................................ 199

Annex I(i). Individual Evaluations.......................................................... 200
Annex I(ii). Individual Evaluations—Key Personnel ............................... 201
Annex II. Information Data Monitoring ................................................ 202
Annex III. Minutes of Public Opening of Financial Proposals .............. 203
Annex IV. Request for Proposals ......................................................... 204
Annex V. Miscellaneous Annexes—Ad Hoc ....................................... 205
- 184 -
Section I. Technical Evaluation Report—Text23

1. Background Include a brief description, context, scope, and objectives of the
services. Use about a quarter of a page.
2. The Selection Elaborate on information provided in Form IIA.

Process (Prior to
Technical Describe briefly the selection process, beginning with the
Evaluation) advertising (if required), the establishment of the shortlist,
expressions of interest, and withdrawals of firms before proposal
submissions. Describe major events that may have affected the
timing (delays, complaints from consultants, key correspondence
with the Bank, Request for Proposals (RFP), extension of proposal
submission date, and so on).
Use about one-half to one page.
3. Technical Describe briefly the meetings and actions taken by the evaluation
Evaluation committee: formation of a technical evaluation team, outside
assistance, evaluation guidelines, justification of subcriteria and
associated weightings as indicated in the Standard Request for
Proposals; relevant correspondence with the Bank; and compliance
of evaluation with RFP.
Present results of the technical evaluation: scores and the award

recommendation.
Highlight strengths and weaknesses of each proposal (most

important part of the report).
(a) Strengths: Experience in very similar projects in the country;
quality of the methodology, proving a clear understanding of
the scope of the assignment; strengths of the local partner;
and experience of proposed staff in similar assignments.
(b) Weaknesses: Of a particular component of the proposal; of a

lack of experience in the country; of a low level of
participation by the local partner; of a lack of practical
experience (experience in studies rather than in
implementation); of staff experience compared to the firm’s
experience; of a key staffer (e.g., the team leader); of a lack
of responsiveness; and of disqualifications (conflict of
interest).
Comment on individual evaluators’ scores (discrepancies).
Items requiring further negotiations.
Use up to three pages.
23
Section I applies to Quality- and Cost-Based Selection (QCBS), Quality-Based Selection (Quality-
Based), Fixed-Budget Selection (Fixed-Budget), and Least-Cost Selection (Least-Cost). Provide
appropriate information in the case of Selection Based on Qualifications (Qualifications) and Single-Source
Selection (SS).
- 185 -
24
Section II. Technical Evaluation Report—Forms
Form IIA. Technical Evaluation—Basic Data
Form IIB. Evaluation Summary—Technical Scores/Ranking
Form IIC. Individual Evaluations—Comparison (Average Scores)
24
Section II applies to Quality- and Cost-Based Selection (QCBS), Quality-Based Selection (Quality-
Based), Fixed-Budget Selection (Fixed-Budget), and Least-Cost Selection (Least-Cost). Supply
appropriate data in cases of Selection Based on Qualifications (Qualifications) and Single-Source
Selection (Single-Source) in Form IIA.
- 186 -
F. Form IIA. Technical Evaluation - Basic Data

2.1 Name of country
Name of Project
2.2 Client:
(a) name
(b) address, phone, facsimile
2.3 Type of assignment (pre-investment,

preparation, or implementation), and
brief description of sources
2.4 Method of selection25: QCBS ___ Quality-Based ___

Fixed-Budget ___ Least-Cost ___
Qualifications ___ Single-Source ___
2.5 Prior review thresholds:

(a) Full prior review US$
(b) Simplified prior review (notice) US$
2.6 Request for expressions of interest26:

(a) publication in United Nations
Development Business (UNDB)27 Yes No
(b) publication in national
newspaper(s) Yes No
(c) number of responses
2.7 Shortlist:
(a) names/nationality of 1.
firms/associations (mark domestic 2.
firms and firms that had expressed 3.
interest) 4.
5.
6.
(b) Submission to the Bank for no-
objection Date
(c) Bank’s no-objection Date
2.8 Request for Proposals:

(a) submission to the Bank for no-
objection Date
(b) Bank’s no-objection Date
(c) issuance to Consultants Date
2.9 Amendments and clarifications to the

RFP (describe)
2.10 Contract:
(a) Bank Standard Time-Based Yes ____
Price adjustment: Yes_____ No ______
(b) Bank Standard Lump Sum Yes____
Price adjustment: Yes_____ No ______
(c) other (describe)
25
See Guidelines.
26
Required for large contracts (see Guidelines).
27
Indicate whether expressions of interest advertised in Web or hardcopy edition of UNDP.
- 187 -
2.11 Pre-proposal conference: Yes No

(a) minutes issued Yes No
2.12 Proposal submission:

(a) two envelopes (technical and
financial proposals) Yes
(b) one envelope (technical) Yes
(c) original submission Date Time
(d) extensions(s) Date Time
2.13 Submission of Financial Proposal Location
2.14 Opening of Technical Proposals by

selection committee Date Time
2.15 Number of proposals submitted
2.16 Evaluation committee28: 1.

Members’ names and titles (normally 2.
three to five) 3.
4.
5.
2.17 Proposal validity period (days):

(a) original expiration date Date Time
(b) extension(s), if any Date Time
2.18 Evaluation Criteria/subcriteria29:

(a) Consultants’ experience
(i) Weight
(ii) Weight
(b) methodology
(i) Weight
(ii) Weight
(c) key staff

(i) individual(s)
(A) _____________ Weight
(B) _____________ Weight
(C) _____________ Weight
(ii) group(s)
(A) _____________ Weight
(B) _____________ Weight
(C) _____________ Weight
(d) training (optional)

(i) Weight
(ii) Weight
(e) local input (optional)

(i) Weight
(ii) Weight
2.19 Technical scores by Consultant Minimum qualifying score
28
It is important that evaluators be qualified.
29
Maximum of three subcriteria per criterion.
- 188 -
Consultants’ names Technical scores

1.
2.
3.
4.
2.20 Evaluation report:

(a) submission to the Bank for no-
objection Date
2.21 Evaluation notice:

(a) submission to the Bank: Date
- 189 -
G. Form IIB. Evaluation Summary

Technical Scores/Ranking
[Insert name of [Insert name of [Insert name of [Insert name of
Consultants’ names Consultant 1] Consultant 2] Consultant 3] Consultant 4]
Criteria Scores Scores Scores Scores
Experience
Methodology
Proposed staff
Training
Local input
Total scorea
Rank
a. Proposals scoring below the minimum qualifying score of [number] points have been rejected.
- 190 -
H. Form IIC. Individual Evaluations—Comparison
[Insert name of [Insert name of [Insert name of [Insert name of

Consultants’ Names Consultant 1] Consultant 2] Consultant 3] Consultant 4]
Criteria
Experience A
a
B
AV
C D
Methodology
Key staff
Training
Local input
Total
a. A, B, C, and D = scores given by evaluators; AV = average score, see Annex I(i).
- 191 -
NOTE:
Please see the Preface.
For contracts above a threshold indicated in the Loan Agreement and requiring the
Bank’s no-objection of the technical evaluation report, financial proposals must not be opened
before the Borrower has received such no-objection. The technical evaluation (technical scores
in particular) cannot be changed following the opening of the financial proposals.
- 192 -
30
Section III. Financial Evaluation Report—Award Recommendation—Text
[The text will indicate:
(a) any issues faced during the evaluation, such as difficulty in obtaining the
exchange rates to convert the prices into the common currency used for
evaluation purposes;
(b) adjustments made to the prices of the proposal(s) (mainly to ensure consistency
with the technical proposal) and determination of the evaluated price (does not
apply to Quality-Based (Quality-Based), Selection Based on Qualifications
(Qualifications), and Single-Source Selection (Single-Source));
(c) tax-related problems;
(d) award recommendation; and
(e) any other important information.
Taxes are not taken into account in the financial evaluation whereas reimbursables are.]
30
Applies to QCBS, Fixed-Budget, and Least-Cost. For Quality-Based, Qualifications, and Single-
Source provide relevant information as indicated.
- 193 -
31
Section IV. Financial Evaluation Report-Award Recommendation—Forms
Form IVA. Financial Evaluation—Basic Data
Form IVB. Adjustments—Currency Conversion—Evaluated Prices
Form IVC. QCBS—Combined Technical/Financial Evaluation—Award

Recommendation
Form IVD. Fixed-Budget and Least-Cost Selection—Award Recommendation
31
Applies to QCBS, Fixed-Budget, and Least-Cost. For Quality-Based, Qualifications, and Single-
Source, provide relevant information as indicated.
- 194 -
I. Form IVA. Financial Evaluation—Basic Data
4.1 Bank’s no-objection to technical

evaluation report (Quality-Based,
Qualifications, Single-Source) Date
4.2 Public opening of financial proposals

(a) Names and proposal prices (mark Date Time
Consultants that attended public 1.
opening) 2.
3.
4.
4.3 Evaluation committee: members’

names and titles (if not the same as in
the technical evaluation - Quality-
Based, Qualifications, Single-Source)
4.4 Methodology (formula) for evaluation of

cost (QCBS only; cross as appropriate) Weight inversely proportional to cost
Other
4.5 Submission of final technical/financial

evaluation report to the Bank (Quality-
Based, Qualifications, Single-Source) Date
4.6 QCBS Consultant’ Technical Financial Final

(a) Technical, financial and final Name scores scores scores
scores (Quality-Based: technical
scores only
(b) Award recommendation
4.7 Fixed Budget and Least-Cost Consultant’ Technical Proposal Evaluated

(a) Technical scores, proposal and Name scores prices prices
evaluated prices
(b) Award recommendation

(c) Fixed-Budget: best technical
proposal within the budget
(evaluated price) Name
(d) Least-Cost: lowest evaluated
price proposal above minimum
qualifying score Name
- 195 -
32
J. Form IVB. Adjustments—Currency Conversion—Evaluated Prices
Evaluated price(s) Conversion to currency of Financial scoresd

a b
Proposals’ prices Adjustments evaluationc
Consultants’ Amounts Exchange Proposals’ prices
e
Names Currency (1) (2) (3) = (1) + (2) rate(s) (5) = (3)(4) (6)
(4)
a. Comments, if any (e.g., exchange rates); three foreign currencies maximum, plus local currency.
b. Arithmetical errors and omissions of items included in the technical proposals. Adjustments may be positive or negative.
c. As per RFP.
d. 100 points to the lowest evaluated proposal; other scores to be determined in accordance with provisions of RFP.
e. Value of one currency unit in the common currency used for evaluation purposes, normally the local currency (e.g., US$1 = 30 rupees). Indicate
source as per RFP.
32
For Quality-Based, Qualifications, and Single-Source, fill out only up to column 3.
- 196 -
K. Form IVC. QCBS—Combined Technical/Financial Evaluation—Award Recommendation
Technical Financial
Evaluation Evaluation Combined Evaluation
Technical Weighted Financial Weighted
scoresa scores Technical scoresc scores Scores
Consultants’ names S(t) S(t) × Tb rank S(f) S(f) × Fd S(t) T + S(f) F Rank
Award recommendation To highest combined technical/financial score.

Consultant’s name: _____________________________________
a. See Form IIB.

b. T = As per RFP.
c. See Form IVB.
d. F = as per RFP.
- 197 -
33
L. Form IVD. Fixed-Budget and Least-Cost Selection—Award Recommendation
Fixed-Budget Selection Least-Cost Selection

Consultants’ names Technical scoresa Evaluated pricesb Technical scores Evaluated prices
Award recommendation To best technical score with evaluated price within To lowest evaluated price above minimum qualifying
budget. score.
Consultant’s name: Consultant’s name:
a. See Form IIB.

b. See Form IVB.
33
Fill in appropriate part of form.
- 198 -
34
Section V. Annexes
Annex I. Individual Evaluations
Form V Annex I(i). Individual Evaluations
Form V Annex I(ii). Individual Evaluations—Key Personnel
Annex II. Information Data Monitoring
Annex III. Minutes of Public Opening of Financial Proposals
Annex IV. Request for Proposals
Annex V. Miscellaneous Annexes—Ad Hoc
34
Annex I applies to Quality-Based, Fixed-Budget and Least-Cost. For Qualifications and Single-
Source, it is replaced by a review of the strengths and weaknesses of the proposal, which may be
amended by one or several evaluators.
- 199 -
M. Annex I (i). Individual Evaluations
Consultant’s name: _________________________
Evaluators
Criteria/Sub-Criteria Maximum 1 2 3 4 5 Average
Scores Scores
Experience
-
-
-
Methodology
-
-
-
Key Staff
-
-
-
Transfer of Knowledge
(Traininga)
-
-
-
Participation by Nationalsa
-
-
-
Total 100
a. If specified in the RFP
1. Evaluator’s Name: _____________ Signature: ____________ Date: _________

- 200 -
N. Annex I(ii) Individual Evaluations—Key Personnel

Consultant’s Name: ____________________________
Key Staff Namesa Maximum General Adequacy Experience Total Scores

Scores Qualifications for the in Region Marks
Assignment
( )b ( )b ( )b (100)
Total
a. Sometimes evaluations are made by groups instead of individuals. Each group (e.g.
financial group) has a weight. The group score is obtained by the weighted scores of the
members of the group. For example, the score of a group of three individuals scoring a,
b, and c would be ax + by + cz with x, y, and z representing the respective weights of the
members (x + y + z = 1) in this group.
b. Maximum marks as per RFP
Name of Evaluator: _______________ Signature: _________________ Date: ___________
- 201 -
O. Annex II. Information Data Monitoring
5.1 Loan/credit/grant
(a) number
(b) date of effectiveness
(c) closing date
(i) original
(ii) revised
5.2 General Procurement Notice

(a) first issue date
(b) latest update
5.3 Request for expressions of

interest35:
(a) publication in United Nations Date
Development Business (UNDB)
(b) publication in national local Name of newspaper(s) and date(s)
newspaper(s)
5.4 Did the use of price as a factor of

selection change the final Yes No
ranking?36
5.5 Did the use of “local input” as a
factor of selection change the
technical ranking?37 Yes No
35
Required for large contracts (see Guidelines).
36
Compare technical rank with rank in Form IVC.
37
Figure out technical scores with and without “local input” (Form IIB).
- 202 -
38
P. Annex III. Minutes of Public Opening of Financial Proposals
MINUTES
[The minutes should indicate the names of the participants in the proposal opening session,
the proposal prices, discounts, technical scores, and any details that the Client, at its
discretion, may consider appropriate.
All attendees must sign the Minutes.]
38
Annex III applies to QCBS, Fixed-Budget, and Least-Cost.
- 203 -
Q. Annex IV. Request for Proposals39
[A Standard Request for Proposals must be used for World Bank-financed contracts in excess of
US$200,000. The Bank also recommends the use of the Standard Request for Proposals
document for smaller contracts to simplify its prior review (i.e., when the Borrower cannot issue
the document without the Bank’s no-objection). The Standard Request for Proposals is available
on the Bank’s Internet site (http://www.worldbank.org/html/opr/procure/conspage.html) and in the
Bank InfoShop at the following address:
The World Bank InfoShop

701 18th Street, N.W.
Rm. J 1-060
Washington, D.C. 20433, U.S.A.
1.202.458-5454
books@worldbank.org].
39
Annex IV applies to all selection procedures (The Bank Standard Request for Proposals may be
used for Qualifications and Single-Source, with appropriate modifications).
- 204 -
R. Annex V. Miscellaneous Annexes—Ad Hoc
- 205 -
Annexure 5 to Chapter – XI
Annexure - 5
TABLE OF CONTENTS
FORMATS
1. Procurement checklist for contracts above prior review Threshold

for Civil Work
1.1 Prequalification Details
2. Procurement checklist for contracts above prior review Threshold
for Goods and Equipment
2 Format for seeking Bank’s clearance (valued US$ 200,000 and
above as amended)
3. Procurement checklist for post-award review of contract for Civil
work
4. Procurement checklist for post-award review of contract for Goods
& Equipment
5. Force Accounts
6. National Shopping
7. Check list for Prior Review of Consultancy Contract
8. Check list for Post Review of Consultancy Contract
- 206 -
PROCUREMENT CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD FOR

CIVIL WORKS
1. Name of the Project : ………………………………………….
2. Procurement Package Number or SAR reference: ………………………………………….
3. Description of works : ………………………………………..

4. Estimated cost of work : ………………………………………….
5. Stipulated time of completion : …………………………..(in months)
6. Type of contract : NCB
7. Whether the bidders were prequalified and if, so : Yes/No

Attach details as per Annexure-I
8. Date of clearance of bidding document by

the Bank : …………………………………..
9. Date of invitation of price bids : …………………………………..
10. *when was the bid notice sent : …………………………………..

to representatives of eligible countries …………………………………….
11. * When the bid notice was published in UNDB? : NOT APPLICABLE [Being NCB].
12. Publicity
(National Press – Name of Date of publication: : 1. ……………………………………..
: 2. ……………………………………..
: 3. …………………………………….
13. Dates when the bidding documents were made. : From………….. to ………………
14. Number of bidding documents purchased by

prospective bidders
a) Domestic : ……………………………………
b) Foreign : …………………………………….
15. Pre bid conference held on : ……………………………………..

(Schedule it at about 2/3rd of bidding time)
16. Date of clearance of pre bid conference : …………………………………….

minutes by the bank
17. Last date of receipt and date of opening of bids : ……………………………………..

( both should be the same)
18. Number of bids receive : ……………………………………….

a) Domestic : ………………………………………..
b) Foreign : ……………………………………….
19. Date of clearance of award by the Bank : …………………………………………

(No objection cable)
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20. Award amount as cleared by the Bank : Currency Amount
21. Amount of contract* Currency Amount
22. Date of signing of the Contract : ……………………………………….
23. Contract number : ……………………………………….
24. Name and nationality of the contractor : ……………………………………….
25. Whether the contract includes price

adjustment clause? : Yes/No
26. Date of start of work : ……………………………………….
27. Stipulated period of completion : ……………………………………….
28. Performance Security : Percentage Deduction Total not
a) amount and currencies in proportion : Initial (%) from bills(%) exceeding(%)

to the currencies of payment
b) additional security for unbalanced bids if any: ………… ……….. ………..

c) Defects liability period : …… …………………… months
d) Validity as required : ……………………………… months
e) Has the successful bidder furnished the
performance security in various Currencies
in an acceptable form as stipulated in the bid
document? Indicate : ……………………………………..
i) Form : …………………………………….
ii) Amount : …………………………………….
iii) Validity : …………………………………….
29. Reasons for delay, if any, in forwarding the

conformed copy of the contract. ( Contracts along
with the checklist, should be forwarded to the
Bank within ten days of signing of Agreement) : ………………………………………
30. Any other remarks (attach sheet, if necessary) : ……………………………………….
31. Has the letter of appointment to agreed Dispute

Review Board members or adjudicator been issued. …………………………………….
Signature :………………..
Name :………………………
Designation :……………….
Date :
1. * Clarify reasons for variations, if any, from the value as cleared by the Bank vide Sr. No. 20.
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PREQUALIFICATION DETAILS
1. Date of clearance of pre qualification document : ……………………………..

by the Bank
2. Date of invitation of pre qualification : …………………………….
3. *When the pre qualification notice was sent

to representatives of eligible countries? : …………………………….
4. *When the pre qualification notice

was published in UNDB? : NOT APPLICATION [being NCB].
5. Publicity : (National press-Name and Date of

Publication)
: 1……………………………
: 2…………………………….
: 3……………………………..
6. Dates when pre qualification documents were : ……………………………….

Made available for sale
[NCB – 30 to 60 days] : From………. To……………
7. Last date of receipt of pre qualification

application and date of opening : …………………………………
8. Date of pre qualification conference

(Schedule it at about 2/3rd of the time given to applicants) : ……………………………..
9. Date of clearance of pre qualification conference

minutes by the bank? :……………………………….
10. No. of applicants who
a) purchased the pre qualification documents : ……………………………..

---Domestic : ……………………………..
---- Foreign : ……………………………..
b) submitted the pre qualification application : …………………………….

---- Domestic : …………………………….
----- Foreign : ……………………………..
c) are pre qualified
---- Domestic : …………………………….
---- Foreign :……………………………..
d) Date of clearance of pre qualification by Bank

Signature…………………..
Name……………………
Designation……………..
Date ……………….
* To be filled for ICB contract only
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PROCUREMENT CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD GOODS

AND EQUIPMENT
1. Name of the Project :……………………………………
2. Procurement Package Number :……………………………………
3. SAR reference : …………………………………..
4.Description of Goods : ……………………………………
5.Estimated cost of Goods : Rs.…………………………Lakhs
6. Stipulated time of completion : …………………………( in months)
7.Type of Contract : ………………………………….
8. Whether the Bank cleared bidding

document ? If yes, Give reference] : ……………………………………
9. Date of invitation of bids : ……………………………………
10.When the bid notice was sent to

representatives of member-countries : …………………………………..
11.When the bid notice was
published in UNDB? : …………………………………..
12.Publicity : : 1………………………………..
(national press-name and date : 2 ……………………………….
of publication) : 3………………………………….
13. Dates when the bidding documents

were made available for sale
(ICB-45 to 90 days/ LCB-30
to 90 days : From…………To…………………
14. Number of bidding documents

purchased by prospective bidders
---Domestic : ……………………………………
---Foreign : …………………………………….
15. Pre bid conference held on
(Schedule it at about 2/3rd
of bidding time) : …………………………………..
16. Date of clearance of pre bid
conference minutes by the Bank : …………………………………….
17. Last date of receipt and date of opening

of bids (both should be the same) : ……………………………………..
18. Number of bids received : ……………………………………..
---Domestic : ……………………………………..
---Foreign : ……………………………………..
19. Date of clearance of Award by the Bank : …………………………………….
(No Objection cable)
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20. Award amount as cleared by the Bank : Currency Amount

………… .…………..
21. Amount of contract* : Currency Amount

…………. ……………..
22. Date of signing of the agreement : ………………………………
23. Contract number : ………………………………
24. Name and Nationality of the supplier : ………………………………

25. Whether the contract includes price
adjustment clause? : Yes/No
26. Date of start : ……………………………..
27. Stipulated time of completion : ……………………………..

28. Performance security
a) Amount in the currency of contract : ………………………………%
b) Warranty period : ………………………………
c) Stipulated time of completion plus
warranty period : ………………………………
d) Has the successful bidder furnished the : ………………………………
performance security in an acceptable
form in the specified currency
as stipulated in the
bidding document valid as required?
Indicate
i) Form : …………………………..
ii) Amount : …………………………..
iii) Validity : ……………………………
(Attach a copy of the instrument)
29. Reasons for delay, if any, in forwarding the ;……………………………..

conformed copy of contract (contract, along ……………………………..
with the checklist should be forwarded to the ……………………………..
Bank within ten days of signing of agreement) ………………………………
30. Any other remarks (attach sheet, if necessary) :……………………………….
Signature…………………….
Name……………………….
Designation………………..
Date ………………..
____________________________________________________________________________
*Clarify reasons for variations if any from the value as cleared by the Bank vide S.No. 20.
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Format for seeking Bank’s Clearance for increase in Contract value

beyond 15% of the original contract value as well as for granting
extension of the stipulated time for performance of the contract (For all
Agreement valued $ 200,000 and above as amended)
Credit/Loan No. : 4161-IN and 4162-IN

Name of the project : National Agricultural Innovation Project
Sub Project :
1. WBR No. :………………………………………..
2. Contract No. (Agreement) : ……………………………………….
3. Name of Contractor : ……………………………………….
4. Description of work : ……………………………………….
5. a) Original Contract Value : ……………………………………….

b) Anticipated increased
contract value as of date : ……………………………………….
6. Bank’s no objection to the contract : ……………………………………….
communicated on
7. A) Completion date as per contract : ……………………………………….

b) Completion date as revised now
c) Expected date of completion : ……………………………………….
8. Amount of increase in contract

value anticipated
% w.r.t original contract value : ………………………………………
9. Breakup for the increase in value of : ………………………………………

contract due to :
a) Price Adjustment :………………………………………
b) Extra items :………………………………………
c) Variation in Quantities :………………………………………
d) Contract or Claims : ……………………………………..
i) Arbitration :……………………………………….
ii) Other reasons :……………………………………….
Total
10. Comments on reasons for the increase : ………………………………………
in contract value as well as reasons for ………………………………………
Extension of the stipulated time for ………………………………………
performance.
(use additional sheet where necessary)
Chief Engineer ……………….. Superintending Engineer ……………
……………………………… …………………………………………
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PROCUREMENT
CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS
For Civil Works

1. General :
.1.1 Name of project :…………………………….
1.2 Procurement Package Number :…………………………….
or SAR Reference
1.3 Description of works :……………………………
1.4 Estimated cost of works :Rs…………………. ………. Lakhs

1.5 Stipulated period of completion : ……………[in months(including
Non-working seasons) from the date of award]
1.6 Whether the method of procurement : Yes/No ii) NCB

adopted is in accordance with the :
project Agreement :
2 Bidding Document :
2.1 Whether bidding document used for : Yes/No

this work is according to the standard
model cleared? CWC or Bank’s SBD)
2.2 If no, list the deviation from standards : 1………………………….

: 2. ………………………..
: 3…………………………
2.3 Whether Packages and slices procedure : Yes/No
has been adopted? If so, have you suitably
modified the clause for submission and
evaluation bids.
2.4 Whether price adjustment clause provided? : Yes/No
(Provide when period of completion is
more than 18 months)
Ensure that total percentage of labour Percentages
contractor’s materials and POL equals 100, : Labour Materials POL
if R in the formula represents net value
of work done ……….. ………. ……….
2.5 Whether bill of quantities and specifications : Yes/No
properly checked? (Provide schedule of
quantity for each slice separately and also
one schedule for the combined work, i.e.,
for the package group in the bidding
document).
2.6 bid Security :
a)Whether the guidelines have been followed : Yes/No
in fixing the Bid Security? If not, give reasons
b)What is the percentage/amount :…………………………….
(No exemption should be permitted :……………….%…….Rs…….
to any class of bidders) Rupees…………………………..
- 213 -
2.7 Whether any preference on price or other : Yes/No

conditions allowed in the bidding
document/award for any bidder or class
of bidders? If yes, list the preferences.
(No preferential treatment should be given
to any bidder or class of bidders either
for prices or for conditions unless
specifically with the Bank and
stipulated in the Project Agreement).
2.8 Does the bidding document provide
for advances? If, so give details. : Yes/No
What is the interest rate on advances? : ………………………………%
2.9 A) What is the performance
security specified : Initial Percentage Total not
in bidding document (value M) Deduction exceeding
from bills (%)
………… ………..
……………..
2.10 Cost of bidding document : Rs…………………..
3.0 BID INVITATION AND ISSUE OF BIDDING DOCUMENTS :
3.1 Whether the bids for this work were

rejected previously and are being reinvented
If yes, whether Bank’s clearance was obtained? : Yes/No
Give reference (Bids should not be rejected without
Bank’s prior consultation-ref. para 2.60 or Procurent
Guidelines)
Date of invitation of bids :……………………………
3.3 Publication of NIT. : 1………………………….
(give names of national newspapers and date of : 2……………………………
publication) : 3 ……………………………
3.4 (a) dates when bidding documents were made
available for sale;
(b) Sale period should generally be 30 : from… to……………
to 90 days; if not, specify reason
4.0 PRE BID CONFERENCE
4.1 Date of pre-bid conference :…………………………….
4.2 Whether pre-bid minutes were cleared with : Yes/No………………..
the bank? When?
4.3 any amendment issued after pre-bid conference? : Yes/No……………………………
5.0 SALE AND RECEIPT OF BIDDING

DOCUMENTS:
5.1 Last date of receipt of bids and the date :……………………….
of opening of bids.
Both should be the same)
5.2 No. of documents purchased by :………………………..
prospective bidders
5.3 No. of bids received : ……………………….
6.0 Evaluation :
6.1 Has award been made to the lowest responsive : Yes/No
Bidder? (Give rank lowest, or second lowest or third
Lowest, etc. Award should be made to the
lowest responsive bidder)
6.2 Give reasons for ignoring lower offers if the
- 214 -
lowest bidder Is not awarded.
6.3 a) Has the bidder who has been awarded the contract : Yes/No
furnished information about his capability and
financial response to stipulation made in ITB?
B) Are you satisfied that he has the appropriate :……………………………..
Standards Of capability and financial resources :……………………………..
to execute the work As required on the basis :………………………………
of information furnished? Comment briefly. :………………………………
c) Does he meet the minimum criteria for qualification, : Yes/No

if any, specified in the bidding document?
6.4 Does the recommendation for award confirm that : Yes/No
Minutes of pre-bid conference were circulated to
all prospective bidders?
6.5 Is the award to the lowest responsive bidder conditional? : Yes/No

(refer Para 2.58 of Procurement Guidelines)
6.6 Were any negotiations held with the bidders after :…………………………..
opening of bids? If yes, whether Bank’s clearance : ………………………….
was obtained before holding Negotiations and when? :…………………………..
If Bank’s clearance was not obtained why?
(Bank does not favor any negotiations.)
6.7 Whether the award was made within the original : : Yes/No
bid validity?
i) If not, list the reasons for delay :………………………….

a) date of opening :………………………….
b) date of award :…………………………..
ii) If extension of bid validity was sought, : Yes/No

Was that form all bidders and not from the
lowest alone?
iii) Was the period of extension exceeded 8 weeks? : Yes/No
iv) If affirmative, was Bank’s clearance obtained ? : Yes/No
v) If Yes, indicate date of clearance. : ……………………………..
7.0Award of Contract:
7.1 Name of contractor :………………………………….
7.2 Date of award of contract :………………………………
7.3 Date of signing of contract :……………………………..
7.2 Contract value as awarded : Rs………………………….
7.3 number and date : ……………………………..
7.4 Date of start of work : ……………………………..
7.5 Stipulated time of completion of work :………………………………
8 PERFORMANE SECURITY :
8.2 Defects liability period : ……………………………months
8.3 Validity as required :…………………………….months
8.4 Has the successful bidder furnished :Yes/No
performance security in an acceptable
form in various currencies,
In accordance with conditions of contract?
If so, indicate
a) Amount and currencies in proportion : Rs…………………………………
to the currencies of payment
- 215 -
b) Form :………………………………………
c) Validity :………………………………………
(Performance security should remain
valid as required – Attach a copy
of the instrument.)
9 ENCLOSURES:
9.2 Have the following been enclosed?

i) Minutes of pre-bid meeting : Yes/No
ii) Complete item rate comparative statement : Yes/No
iii) Note leading to recommendations for :Yes/No
The award (evaluation report)
iv) One conformed copy of agreement : Yes/No
10. Reasons for delay, if any, in forwarding the :………………………………..

Contract agreement. (The agreement should be :………………………………..
Forwarded for post review by the Bank within ten :……………………………….
Days of signing of the agreement with all the
enclosures).
11. GENERAL
(Any other relevant information concerning :………………………………..
the above procurement) :……………………………….
12. Has the letter of appointment to Dispute : Yes/No
Review Board members/adjudicator been issued?
Signature…………………..
Name………………………
Designation………………..
Date : ……………………
- 216 -
PROCUREMENT
CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS FOR GOODS AND
EQUIPMENT
1. General
1.1 Name of Project :………………………………..
1.2 Procurement package number or SAR Reference :………………………………..
1.3 Description of Goods :…………………………………
1.4 Estimated cost of Goods :Rs………………………Lakhs
1.5 Stipulated period of completion :………………………. in months
1.6 Whether the method of procurement adopted : i) Yes/No ii) ICB/LCB
Is in accordance with the project agreement
2. BIDDING DOCUMENT
2.1 Whether bidding document used for this work : Yes/No
Is according to the standard model?
2.2 If no, list the deviations from standards : : 1…………………………
2…………………………
3………………………….
2.3 Whether price adjustment clause provided? : Yes/No
(Provide when period of completion is
more than 18 months)
2.4 Bid Security
a) Whether the guidelines have been followed : Yes/No
In filling the Bid Security? If no, give reasons :………………………………
b) What is the percentage/amount?
(No exemption should be permitted to any :………….%………….Rs…….
bidder or any class of bidders)
2.5 Whether any preference on price or other conditions: Yes/No
Allowed in the bidding document/ award to any
Bidder or class of bidders?
If, yes, list the preferences.
(No preferential treatment should be given to any bidder
or class of bidders either for price or for conditions unless
specifically cleared with the Bank and stipulated in the
project agreement)
2.6 Does the bidding document provide for advances? : Yes/No
If so, give details. : ……………………………..
What is the interest rate on advances? :………………………………
2.7 Specified performance security in the :…………………………..

Bidding document Percentage
: …………………………..%
2.8 Cost of bidding documents : Rs…………………………
3. BID INVITATION AND ISSUE OF BIDDING DOCUMENTS:
3.1 Whether the bids for this item(s) were previously :Yes/No
Rejected And are being reinvented? If yes,
whether Bank’s clearance Was obtained?
Give reference (Bids should not be rejected without
Bank’s prior consultation-ref. para 2.60 of
Procurement Guidelines)
3.2 Date of invitation of bids : ……………………………
3.3 Publication of NIT : 1…………………………..
(give names of national newspapers and : 2…………………………..
- 217 -
publication) : 3…………………………..
3.4 Dates when bidding documents were made :from………….to…………..
Available for sale (should generally be
30 to 60 days; if not specify reasons?)
4. PRE-BID CONFERENCE
4.1 date of pre-bid conference :……………………………

4.2 Whether pre-bid minutes were cleared with the :Yes/No
Bank? If yes, when?
4.3 Was any amendment issued after pre-bid : Yes/No
Conference?
4.4 Whether minutes of pre bid conference and : Yes/No
Amendment transmitted to all the prospective
Bidders.
5. SALE AND RECEIPT OF BIDDING DOCUMENTS
5.1 Last date of receipt of bids and the date of :…………………………….

Opening of bids (both should be the same)
5.2 No. of documents purchased by prospective bidders:…………………………….
5.3 No. of bids received :…………………………….
6.0 EVALUATION:
6.1 Has award been made to the lowest : Yes/No

responsive bidder who satisfies the minimum
qualification criteria specified in the bidding
document (Give rank lowest, or second lowest
or third lowest, etc.)
6.2 Give reasons for ignoring lower offers if the :……………………………

Lowest bidder is not awarded
6.3 Are you satisfied that he has the appropriate :…………………………………
Standards of capability and financial resources to :…………………………………
Execute the supply as required on the basis of :………………………………….

Information furnished? Comment briefly
6.4 Is the award to the lowest responsive bidder :Yes/No
Conditional? (Refer Para 2.58 of Procurement
Guidelines)
6.5 Were any negotiations held with the bidders after : Yes/No
Opening of bids? If yes, was Bank’s clearance
Obtained before negotiations and when?
(Bank does not favour negotiations)
6.6 Whether the award was made within original : Yes/No

bid validity?
i) If no, list all reasons for delay and give :……………………………….

(a) date of opening :………………………………
(b) date of award :………………………………
ii) If extension of bid validity was sought,
Was that from all bidders and not from
the lowest alone?
iii) Was the period of extension exceeded 8 weeks? : Yes/No
iv) If affirmative, was Bank’s clearance obtained? : Yes/No
v) If Yes, indicate date of clearance : Yes/No
- 218 -
7.0 AWARD OF CONTRACT

7.1 Name of supplier :……………………………….
7.2 Date of award of contract :……………………………….
7.3 Contract value as awarded :Rs……………………………
7.4 Contract number and date :……………………………….
7.5 Date of start :……………………………….
7.6 Stipulated time of completion : ………………………………
8 PERFORMANCE SECURITY
8.1 Specified warranty period :…………………….. months
8.2 Validity as required : …………………… months
8.3 Has the successful bidder furnished : Yes/ No
Performance Security in an acceptable form
in specified currency As per conditions of
contract as required?
If so, indicate.
a) Amount in the currency of the contract : ……………………………..
b) Form :……………………………..
c) Validity :……………………………..
(Attach copy of instrument)
9.0 ENCLOSURES
9.1 Have the following been enclosed?
i) Minutes of pre-bid meeting : Yes/No

ii) Completion item rate comparative statement : Yes/No
iii) Note leading to recommendations for the
Award(evaluation report) :Yes/No
iv) One conformed copy of agreement : Yes/No
10. Reasons for delay, if any, in forwarding the contract : ………………………………..

agreement. (The agreement should be forwarded for :…………………………………
post review of the Bank within ten days of signing :………………………………….
of the agreement with all the enclosures)
11. GENERAL
(Any other relevant information concerning : ……………………………….
the above procurement)
Signature …………………………
Name …………………………….
Designation……………………….
Date …………………….
- 219 -
Form I-B
FORCE ACCOUNT
Name of Project : Year
Credit Loan/No.: Month :
Value permissible under national shopping as per Project Agreement : Rs……………..
VALUE OF WORKS EXECUTED ON FORCE ACCOUNT
Name of Sub-Project From the beginning of During the month Total to the end of
credit upto the end of under reporting month under reporting
previous (Rs.) (col 2+3)
(Rs.) (Rs.)
(1) (2) (3) (4)
TOTAL FOR
PROJECT
Signature:…………………….
Name & designation …………
Date :………….
Note : Item-Wise details should be included in Form IA only.
- 220 -
FORM 1-C
NATIONAL SHOPPING
Name of Project : Year :

Credit Loan/No. Month:
Value permissible under National Shopping as per Project Agreement : Rs. …………
VALUE OF ITEMS PROCURED UNDER NATIONAL OR INTERNATIONAL SHOPPING
Name of Sub-Project From the beginning of During the month Total to the end of
credit upto the end of under reporting month under reporting
previous (Rs.) (col 2+3)
(Rs.) (Rs.)
(1) (2) (3) (4)
_____________________________________________________________________________
Signature:…………………….
Name & designation …………
Note : Item-Wise details should be included in form IA only.
FORM : N. SHOPPING IC
- 221 -
HIRING OF CONSULTANCY SERVICES [T]

CHECK LIST FOR PRIOR REVIEW OF CONSULTANCY CONTRACTS
(to be enclosed along with final contract)
1. Name of Project :
2. Credit/Loan Number :
3. Type of Consultancy Assignment : Pre-investment Studies/

Preparation Services/
Implementation Services
4. Whether the terms of reference have been : Yes/No

reviewed and cleared with the Bank ? If yes,
give reference
5. Whether a short list of the consultants/ : Yes/No

consultant firms has been drawn and
cleared with the Bank? (The short list
should indeed be short and prepared
through clients knowledge of consultant/
consultant firms either from various
working experience, from meeting their
representatives or from references from
other clients, Bank, etc. Normally this
should not be less than three and more
than six .)
Give the names of shortlisted consultants.
6. Whether the draft letter of Invitation with : Yes/No

draft or contract according to the Standard
cleared with the Bank?
If not/reasons thereof
7. Whether the draft letter of invitation : Yes/No

along with contract were reviewed and
cleared with the Bank? If yes, give reference
8. Date of invitation of proposals : Yes/No
9. Last date of receipt of technical proposals : Yes/No

(45 to 60 days from date of invitation)
10. Whether the technical proposals were : Yes/No

evaluated and cleared with the Bank?
If yes, give reference.
11. What is the result of evaluation . Give

list of consultants with ranking
12. Whether the negotiations were held : Yes/No

with the best technically ranked firm
and draft contract finalized? If yes,
When? Give dates. If the contract is not
finalized with the best technically ranked
firm, whom has the contract finalized?
Give reasons.
- 222 -
13. Whether the draft contract negotiated : Yes/No

with the selected firm was reviewed
and cleared with the Bank. If yes, When?
Give date
14. Name of consultant/consultant firm : ............................................
15. Date of Award of the contract : .............................................
16. Date of signing of the contract : Currency/ Amount
17. Contract value as awarded : : .................................................
18. Contract number and date : : .................................................
19. Stipulated period of completion : .................................................
20. Enclosure:
(one copy of the final contract with Appendix)
Signature: ....................................
Name: .....................................
Designation: ......................................
Date: .........................................
NR/DCM/ls Wednesday, February 24, 1999

m:\pdat\sbd\f&ch\forms\t.doc
- 223 -
HIRING OF CONSULTANCY SERVICES [U]

CHECKLIST FOR POST AWARD REVIEW OF CONSULTANCY CONTRACTS
(to be enclosed with final contract)
1. Name of Project : ………………………………………
2. Credit/Loan Number : ………………………………………
3. Type of Consultancy Assignment : Pre-investment Studies/Preparation

Preparation Services/Implementation Services
4. Whether the terms of reference include the

following ? [answer each of the following separately] : Yes/No
i) Concise statement of objectives : ………………………………………

ii) Outline of tasks to be carried out : ………………………………………
iii) Schedule of completion of tasks : ………………………………………
iv) Support/inputs to be provided by employer : ………………………………………
v) Final outputs required from the consultant : ………………………………………
vi) Review procedures : ………………………………………
5. Whether the terms of reference have been : Yes/No

reviewed and cleared with the Bank ? If yes,
give reference
6. Whether the cost estimate has been prepared and : Yes/No

advised to the Bank ? If yes, indicate value, [cost
estimate, or budget, should be based on borrower’s
perception of the assignment requirements in terms
of level and type of personnel, period to be spent in
the field and in the home office, physical inputs
and other items required for the services]
7. Whether a shortlist of the consultants/consultant : Yes/No

firms has been drawn and cleared with the Bank ?
[The shortlist should indeed by short and prepared
through clients knowledge of consultant/
consultant firms either from various working
experience, from meeting their representatives
or from references from other clients, Bank, etc.
Normally, this should not be less than three and
more than six]
Give the names of shortlisted consultants
8. Whether the draft letter of invitation with draft : Yes/No

contract is according to the Standard cleared with
the Bank ?
If not, reasons thereof : ………………………………………
9. Date of invitation of proposals : Yes/No
10. Last date of receipt of technical proposals : Yes/No

[30 to 60 days from the date of invitation]
11. Whether the technical proposals were evaluated : Yes/No

as per criteria set out in the Letter of Invitation ?
- 224 -
12. What is the result of evaluation ? Give the list : Yes/No

of consultants with ranking.
13. Whether the negotiations were held with the best : Yes/No
technically ranked firm and draft contract with
Appendix finalized ? If yes, when ? Give dates.
If the contract is not finalized with the best
technically ranked firm, with whom has the
contract finalized ? Give reasons.
14. Name of consultant/consultant firm : ………………………………………
15. Date of award of the contract : ………………………………………
16. Date of signing of the contract : ………………………………………
17. Contract value as awarded : Currency/Amount
………………………………………
18. Contract number and date : ………………………………………
19. Stipulated period of completion : ………………………………………
20. Enclosure
[a copy of the final contract with Appendices]
Signature : ………………………..
Name : ………………………..
Designation ………………………..
Date : ………………………………
NR/ls Wednesday, February 24, 1999

m:\pdat\sbd\f&ch\forms\u.doc
- 225 -
Annexure 6 to Chapter – XIII
Annexure 6
TABLE OF CONTENTS
FORMATS
1. Notification No. : 84/97 dated 11.11.1997 – Custom Duty

for United Nations Projects
2. Project Authority Certificate for exemption from Custom
Duty
3. Form ‘D’ for Central Sales Tax
- 226 -
Notification No. : 84/97-Cus DATED 11-11-1997

United Nations - Projects
As amended vide Customs Notification No. 85/99 Cus dated 6-7-99, Customs
Notification No. 119/99 dated 2-11-99.
In exercise of the powers conferred by sub-section (1) of section 25 of the

Customs Act, 1962 (52 of 1962) read with subsection (4) of section 68 of the
Finance (No. 2) Act, 1996 (33 of 1996), the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby exempts all
the goods imported into India for execution of projects financed by the United
Nations or an international organisation and approved by the Government of
India, from the whole of the duty of customs leviable thereon under first
schedule to the Customs Tariff Act, 1975 (51 of 1975), the whole of the
additional duty of customs leviable thereon under section 3 of the said
Customs Tariff Act and the whole of the special duty of customs leviable
under section 68 of the Finance (No.2) Act 1996 (33 of 1996)[Substituted vide
Customs Notification No. 85/99 dated 6-7-99]
Provided that the importer, at the time of clearance of the goods, produces
before the Assistant Commissioner of Customs or Deputy Commissioner of
Customs, as the case may be, having jurisdiction:-
(i) in case the said goods are –
(a) imported by an international organisation listed in the

Annexure appended to this notification and intended to be
used in a project that has been approved by the Government
of India and financed (whether by a loan or a grant) by such
an organisation, a certificate from such organisation that the
said goods are required for the execution of the said project
and that the said project has duly been approved by the
Government of India; or
(b) imported for use in project that has been approved by the
Government of India and financed (whether by a loan or a
grant) by an international organisation listed in the said
Annexure, a certificate from an officer not below the rank of
Deputy Secretary to the Government of India, in the Ministry
of Finance (Department of Economic Affairs) that the said
goods are required for the execution of the said project and
the said project has duly been approved by the Government
of India;
- 227 -
(ii) in case the said goods are intended to be used in a project financed
(whether by a loan or a grant) by the World Bank, the Asian
Development Bank or any international organisation, other than
those listed in the Annexure, and the project has been approved by
the Government of India, a certificate from the executive head of
the Project Implementing Authority and countersigned by an officer
not below the rank of a Joint Secretary to the Government of India,
in the concerned Line Ministry in the Government of India, that the
said goods are required for the execution of the said project and
that the said project has duly been approved by the Government of
India, and
(iii) in case the said goods are intended to be used in a project financed
(whether by a loan or a grant) by the World Bank, the Asian
Development Bank or any international organisation, other than
those listed in the Annexure, and the said project has been
approved by the Government of India for implementation by the
Government of a State or a Union Territory a certificate from the
executive head of the Project Implementing Authority and
countersigned by the Principal Secretary or the Secretary
(Finance), as the case may be, in the concerned State Government
or the Union Territory, that the said goods are required for the
execution of the said project, and that the said project has duly
been approved by the Government of India for implementation by
the concerned State Government; [Substituted vide Customs
Notification No. 119/99 dated 2-11-99] [Substituted vide Customs
Notification No. 85/99 dated 6-7-99]
Explanation For the purposes of this notification,-
(a) "international organisation" means an international

organisation to which the central Government has
declared, in pursuance of section 3 of the United Nations
(Privileges and Immunities) Act, 1947 (46 of 1947), that
the provisions of the Schedule to the said Act shall
apply;
(b) "Line Ministry" means a Ministry in the Government of India,
which has been so nominated with respect to a project, by
the Government of India, in the Ministry of Finance
(Department of Economic Affairs)".
[Substituted vide Customs Notification No. 85/99 dated 6-7-
99]
- 228 -
ANNEXURE
1. United Nations Development Progremme,

2. United Nations International Childrens' Fund,
3. Food and Agricultural Organisation,
4. International Labour Organisation,
5. World health Organisation,
6. United Nations Population Fund
7. United Nations World Food Programme.
8. United Nations Industrial Development Organisation.
(Above Sl. No. 8 has been added vide Cus. Ntf. No. 107/2001, Dt.
12/10/2001.)
(Above Sl. No. 7 has been added vide Cus. Ntf. No. 75/2001, Dt. 06/07/2001.)
[Annexure has been added vide Customs Notification No. 119/99 dated 2-11-
99]
- 229 -
No. : .______________________________ Date: ______________
[COMPLETE ADDRESS OF ISSUING AUTHORITY]
PROJECT AUTHORITY CERTIFICATE.

(To be used for Custom Duty Exemption)
I, _________________________(Designation)____________ am duly authorised to

issue the Project Authority Certificate. I hereby certify that M/s _______________
have been awarded a contract for supply of goods of value, quantity and description
mentioned below for total value of ____________________________ against Form
'D' for Contract No. ___________________________________
It is further certified that: -

(a) Supplies under the Contract No. _____________________________________
is to be made in India to a Project financed by International Development
Association (IDA), Credit No. 4161-IN & 4162-IN, which has been notified by
the Department of Economic Affairs, Ministry of Finance and the same is under
the procedure of International competitive bidding system in accordance with
the procedure of the above mentioned Fund/agency, legal agreement of which
provides for tender evaluation without including the customs duty and that the
import content of the order is [Amount] for manufacturing [Goods name] in
India.
2. It is further certified that the contract No. ___________________ in respect

of National Agricultural Innovation Project (NAIP) has been awarded to
M/s [supplier’s name] as the Indian main Contractor. The contract does
not include name of any sub-contractor.
PARTICULARS OF SUPPLIES TO BE MADE:
Sch. Description of Quantity in Value of Value of

No. item. Nos goods to be Import
supplied in Rs. content
Total
3. It is also certified that no other similar certificate to any other party has been
granted for the same supplies detailed above, under the same contract referred
to above.
(Name)
National Director
Indian Council of Agricultural Research,
Dept. of Agricultural & Education,
Ministry of Agriculture, Govt. of India
Counter Signed by
(Name)
[Joint Secretary or
above rank of Govt. of India,]
[duly sealed with signed]
- 230 -
No. : .______________________________ Date: ______________
[COMPLETE ADDRESS OF ISSUING AUTHORITY]
PROJECT AUTHORITY CERTIFICATE.
(For the purpose of availing Excise Duty Exemption)
1. This is to certify that the goods consisting of [Good’s name] ordered by [name
Ordering authority] on behalf of Indian Council of Agricultural Res.
(I.C.A.R), Dept. of Agril. Res. & Edu., Ministry of Agriculture, New Delhi
vide their Notification of Award No. [Contract No. ] for Rs _______ (in words)
against Form 'D' on M/s [Supplier’s Name] India are required for execution of
National Agricultural Innovation Project (NAIP).
2. The said Project has been financed by the World Bank under Credit No.
4161-IN & 4162-IN and that the project has been duly approved by
Government of India.
3. The goods covered by the said contract are exempt from payment of Excise
Duty in terms of Central Excise Notification No. 108/95 Central Excise dated
28.08.95 and No. 7/98- Central Excise dated 02.06.98 of Central Excise and
Salt Act, 1944.
(Name) (Name)
[Joint Secretary or National Director
above rank of Govt. of India,] National Agricultural Innovation Project
[duly sealed with signed] Indian Council of Agricultural Research,
Govt. of India
- 231 -
COUTERFOIL DUPLICATE FOIL ORIGINAL FOIL
The Central Sales Tax The Central Sales Tax The Central Sales Tax
(Registration & Turnover) Rules, 1957 (Registration & Turnover) Rules, 1957 (Registration & Turnover) Rules, 1957
FORM D FORM D FORM D
Form of Certificate for making Govt. Form of Certificate for making Govt. Form of Certificate for making Govt.
Purchases Purchases Purchases
[See Rule 12 (1)] [See Rule 12 (1)] [See Rule 12 (1)]
(To be used when making purchases (To be used when making purchases (To be used when making purchases
by Government not being a registered by Government not being a registered by Government not being a registered
dealer) dealer) dealer)
Central Government/Name of the Central Government/Name of the Central Government/Name of the

State Government: Central State Government: Central State Government: Central
Government Government Government
Name of the issuing Name of the issuing Name of the issuing
Ministry/Department: Indian Council of Ministry/Department: Indian Council of Ministry/Department: Indian Council of
Agricultural Res., Dept. of Agril. Res. Agricultural Res., Dept. of Agril. Res. Agricultural Res., Dept. of Agril. Res.
& Edu., Ministry of Agriculture, New & Edu., Ministry of Agriculture, New & Edu., Ministry of Agriculture, New
Delhi Delhi Delhi
Name and address of office of issue: Name and address of office of issue: Name and address of office of issue:
I.C.A.R., Govt. of India, National I.C.A.R., Govt. of India, National I.C.A.R., Govt. of India, National
Agricultural Innovation Project, 5th Agricultural Innovation Project, 5th Agricultural Innovation Project, 5th
Floor, KAB-II, Pusa, New Delhi – 12 Floor, KAB-II, Pusa, New Delhi – 12 Floor, KAB-II, Pusa, New Delhi – 12
To To To
M/s [Supplier’s name and address] M/s [Supplier’s name and address] M/s [Supplier’s name and address]
Certified that the goods [goods name] Certified that the goods [goods name] Certified that the goods [goods name]
ordered for in our purchase order No. ordered for in our purchase order No. ordered for in our purchase order No.
[Contract no. & date] Quantity [Contract no. & date] Quantity [Contract no. & date] Quantity
_______ purchased from you for Rs _______ purchased from you for Rs _______ purchased from you for Rs
_________ _________ _________
Signature Signature Signature

Designation: Designation: Designation:
For & on behalf of I.C.A.R., Dept. of For & on behalf of I.C.A.R., Dept. of For & on behalf of I.C.A.R., Dept. of
Agriculture & Education, Ministry of Agriculture & Education, Ministry of Agriculture & Education, Ministry of
Agriculture, Govt of India Agriculture, Govt of India Agriculture, Govt of India
Seal of the duly Authorised Seal of the duly Authorised Seal of the duly Authorised
Officer of the Government Officer of the Government Officer of the Government
- 232 -

Procurement Guidelines for NAIP

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Procurement Guidelines for NAIP

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[For official use only]

Indian Council of Agricultural Research

Procedures & Guidelines

National Agricultural Innovation Project

Project Implementation Unit (PIU), NAIP,

Chapter Description Page

I General introduction 1-3

III Applicable Procurement Guidelines

2. Procurement Guidelines 7-8

Chapter Description Page

Chapter Description Page

ABBREVIATIONS AND ACRONYMS

IDA International Development Association

NAIP National Agricultural Innovation Project

ICB International Competitive Bidding

NCB National Competitive Bidding

TTL Task Team Leader

PAS Procurement Accredited Staff

IBRD International Bank for Reconstruction and Development

QCBS Quality and Cost Based Selection

QBS Quality Based Selection

FBS Selection under Fixed Budget

SIC Selection of Individual Consultant

LCS Least Cost Selection

CQS Selection Based on Consultants’ Qualification

SSS Single Source Selection

DGS&D Directorate General of Supplies & Disposal

PIP Project Implementation Plan

IFB Invitation for Bids

UNDB United Nations Development Business

REOI Request for Expression of Interest

RFP Request for Proposal

TOR Terms of Reference

LOI Letter of Invitation

ITC Instructions to Consultants

CGL Consultancy Guidelines

ITB Instructions to Bidder

GCC General Conditions of Contract

SCC Special Conditions of Contract

BDS Bid Data Sheet

SBD Standard Bidding Document

International Development Association (IDA) has provided financing of US$ 200

The objective of the Project is to contribute to the sustainable transformation of

Sound public procurement is vital for ensuring success of a project through

• Ensuring success of the Project.

11. Methods of Procurement:

Method of Procurement that a Borrower chooses to use for a particular project

1. the nature and size of the project

Commonly used methods are-

Bank considers ICB as the most preferred method of procurement with an

Other methods of procurement may be adopted where considered

Task Team Leader (TTL)

Need for high quality services

Whereas Quality and Cost-Based Selection (QCBS) is the most commonly

Procurement and Consultants’ Services

B. All consultants’ services shall be procured in accordance with Section I

C. The capitalized terms used below in this Schedule to describe

Section II : Particular Methods of Procurement of Goods, Works and

B. International Competitive Bidding : Except as otherwise provided in

C. Other Procurement Procedures

1. National Competitive bidding : Goods and works estimated to

2. Shopping : Goods and works estimated to cost less than US$