GUIDELINES FOR VENDOR REGISTRATION

NAVAL DOCKYARD, VISAKHAPATNAM

Outsourcing key functions of Organisation on such scale to multiple vendors generates

risks to quality, regulatory & legal compliance (of safety, security and environment), financial
management, operational and strategic aspects apart from grave risks to the Organisation’s
reputation. This is because the final responsibility for all compliance requirements remains with
Organisation and not on its vendors.

Vendor Management is defined as a discipline that enables organisations to control costs,

drive service excellence and mitigate risks to gain increased value from their vendors throughout
the contract lifecycle. Vendor Management seeks long term relationships over short term gains
and marginal cost savings. Benefits of long term relationship include trust, preferential treatment
and access to insider expert knowledge. Negotiating a win-win agreement should be the goal.

The final product quality delivered by ND(V) is heavily influenced by the service, materials
and components supplied by vendors. Therefore, it is necessary to prequalify the vendors
through a process of Vendor Registration, wherein the technical competence and financial
capacity of the potential vendors to whom work is proposed to be offloaded/ outsourced. On
finding evidence of the vendor’s ability to supply/ provide processes, products and services in
accordance to the requirements of ND(V) through a due process of assessment, the vendor is
“Registered in ND(V)’s database”. Such registering of the vendor for a type/ range of work is a
pre- condition for offloading such work to a vendor, and shall apply to all vendors involved in
offloading of repairs/ refit works, outsourcing of services, local procurement of material/ spares
and all other contracts by the Yard.

(a) Main components of Vendor Registration:

 Introduction from potential vendor

 Documentation process

 Vendor Assessment (Technical/ Financial competence/ Administrative

Requirements)

 Allotment of registration number

(b) Criteria for Registration of a Vendor.

The suitability of a vendor for registration is to be based on the assessment of three

parameters –

 The firm’s technical competence,

 Financial capability and
 Fulfilling the administrative requirements of ND(V).

The guidelines for making these three assessments is enumerated below :-

(i) Assessment of Technical Competence

The technical capability of a firm is to be assessed on the basis of Core

competence in the relevant field, experience, Infrastructure, competence and skills of
manpower, previously executed orders and their feedback from vendor’s customers. The
guidelines for undertaking the Technical assessment of the vendor are as follows:-
 The general and specific guidelines for assessing technical competence of vendor
are as follows:-

(aa) Generic Guidelines

Experience. Vendor should have a minimum of 03 years experience of Core

competence in the relevant field. Towards this, the documents pertaining to the
“Date of Establishment” of company and details of work executed in core
competence during the period are to be obtained and assessed during site visit.

Infrastructure. Vendor should have suitable workshops, machinery, tools, buildings,

offices, commensurate to the relevant field. Photographs of
building/office/workshop, equipment/machinery/ tools, layout diagrams & and
documentary evidence of lease agreement etc to be obtained.

Previously executed orders. Vendor should have successfully executed minimum

of 02 work orders in the relevant field. Proof such as Job completion certificates or
work completion certificate issued by the contract operating authority should be
verified.

Competence of Manpower. Vendor should have capability of providing services by

means of skilled /competent manpower. For this purpose, details of manpower
employed, their qualification and experience in relevant field should be examined.

Proof of MoU with other firms. Some companies have MoU/tie up with other
companies for capacity buildup. Proof of such MoUs, if any, should be
examined/verified.

(ab) Specific Guidelines relevant to a particular category of vendor

The methodology of assessing the core competence of different categories

of vendors would be different. Therefore, though the generic guidelines of technical
assessment enumerated above would be broadly applicable, the technical
assessment of the vendor is to be additionally guided by the detailed documented
procedures/ guidelines for assessing a specific category of vendor.

(ii) Assessment of Financial Capability

In order to ensure that vendors are not loaded with orders/ contracts beyond their
capacity, they are to be classified/ graded for financial capacity/ solvency during the
process of assessment for registration. It is necessary to assess the financial soundness
of the vendors and their capability to invest and incur expenditure for undertaking major
repairs, procuring required equipment/ spares and various other inputs required for
execution of orders. Any vendor desirous of registering with the Yard should have a
minimum solvency of Rs. 10 Lakh. The guidelines for undertaking the financial
assessment of the vendor are as follows :-

GUIDELINES FOR ASSESSMENT OF FINANCIAL CAPACITY OF VENDOR

The guidelines for assessing financial capacity of vendor are as follows:-

(aa) Scrutiny of balance sheets. The balance sheets duly audited by the firm’s
own CA and associated Profit and Loss Statements for the last three years are to
be obtained. From these documents, the assessment team is to give factual data
 in respect of the following aspects of the financial position of the firm:-

(i) Sales/ turn over in the last three years and average per year. For
this purpose, trading account is not to be considered and only sales
account given in the audited balance sheets is to be included.
(ii) Profit / losses during the past 03 years
(iii) Accumulated losses
(iv) Net worth of the firm (Assets minus liabilities).

(ab) Bank Solvency. Any vendor desirous of registering itself with the Yard
should have a minimum solvency of Rs.10 Lakh. Solvency certificate
mentioning the account number and other details of the firm, issued by any
reputed bank is to be considered.

(ac) The vendor who submits a bank solvency of Rs. 25 Lakh or above has to
submit the financial rating carried out by financial rating agencies such as CRISIL,
SAMERA, D&B or Brickwork rating in addition to other documents.

Based on these guidelines, the financial capacity of the vendor is to be classified

as tabulated below:-
Class Capacity of Firm
S PSU/ Reputed Firm - No Limit
A Rs. 100 Crores and above
B Rs. 10 Crores - 99 Crores
C Rs. 1 Crore - 09 Crores
D Rs. 50 Lakhs - 99 Lakhs
E Rs. 10 Lakhs - 49 Lakhs

(iii) Administrative Requirements to be fulfilled

E-Procurement. All tenders invited by the ND(V) shall be through e-Procurement

system. Therefore, the vendors have to mandatorily get themselves registered on the
CPP Portal and be in possession of certified Digital Signatures/ e-token. These details
have to be mandatorily submitted by the vendors in the VRF (Vendor Registration Form)
to get themselves registered. The vendors not registered on the CPP portal are not to be
considered for registration in the yard.

(c) Based on the assessment of core competence, the vendor would be classified into any of
the following twelve broad categories:-

(a) OEM(O)
(b) Manufacturer (M)
(c) Fabricator (F)
(d) Repairer(R)
(e) Supplier/Dealer(S)
(f) Training Institute for Human Resource Development (T)
(g) Turn Key Project (P)
(h) Conservancy & Arboriculture(C)
(i) Information Technology (IT)
(j) Hiring of Manpower/Services (HR)
(k) Civil Works (CW)
(l) Miscellaneous (Z) (for category not covered under any of above)
 However, the above broad categories often do not capture the expertise and technology
discipline of the vendor. Therefore, based on the technology discipline, and specific expertise of
the vendor, the core competence is to be further sub-categorised into specific itemized jobs
under the above broad categories. An exhaustive list of such standardized jobs of ND(V) i.r.o.
Hull, Engineering, Electrical & Weapons, Training Services/Human Resource Development,
Conservancy & Arboriculture, Supplier/ Dealer, IT services, Turnkey projects, Hiring of
Manpower/Services and Miscellaneous works for which a firm/ vendor can be registered in the
Yard.

(d) Procedure for Registration of a Vendor: The procedure for vendor registration
shall involve the following steps:-

(i) Letter of introduction by the vendor.

(ii) Issue of current revision of Vendor Registration Form (VRF) to the vendor by Quality
Assurance (QA) department.

(iii) Submission of duly filled VRF and relevant documents by Vendor as per check-off list
attached with VRF.

(iv) Assessment of vendor is to be done in three steps.

(i) Step1 - Scrutiny of submitted documents. The preliminary assessment of the

vendor by QA department is undertaken on the basis of the scrutiny of submitted
documents. Vendors not found suitable/ eligible at this stage of documentation review,
are to rejected and the same is to be communicated to the vendor under a covering
letter clearly indicating the reason for rejection.

(ii) Step2 - Site visit of vendor’s premises. On-site assessment of vendor is to be

undertaken by a standing Vendor Evaluation Committee (VEC) in accordance to the
guidelines. VEC is comprise of representatives from the QA department as well as
production/ user departments.

(iii) Step3 - Vendor Assessment Report. The Vendor Evaluation Committee (VEC) will
render a Vendor Assessment Report on each vendor and submit to Competent
Registering Authority for approval.

(e) Registration of Out Station Vendors. Procedure mentioned at Para (d) above is
to be followed for registration of all out station vendors except site visits. However, it is
mandatory to submit valid vendor registration certificate with other DGQA/ Defence/ Defence
PSU’s/ Defence Shipyards etc. as a proof of credibility of vendor.

Though registration of the vendors mentioned above, could be undertaken with ND(V) on
submission of valid registration certificate/ relevant documents, the duly filled VRF (Vendor
Registration Form) and the associated relevant documents are also to be obtained. The
registration would be valid till the date of validity of such registration certificate submitted by the
vendor. The continuation of registration will be subject to the vendor submitting renewal
certificate from respective registration authority. However, if the registration certificate issued by
the above-mentioned agencies is not objectively/ adequately worded or if a thorough capability/
capacity assessment of the vendor is considered essential prior its registration with ND(V) for
any reason whatsoever, the same is to be undertaken as in the case of any other vendor
seeking registration for the first time.
(f) Post assessment, recommendations of the VEC contained in the Vendor Assessment
Report on file and will obtain approval of CRA to register the vendor.

(g) Procedure of Renewal of Registration. Vendors permanently registered with the

Yard are required to apply for renewal of their registration at least 03 months in advance of
expiry date. Vendor performance rating shall form the main criteria for renewal of registration. It
should be ensured that only the vendors with a track record of sustained good performance as
established through the vendor performance rating procedure are considered for renewal/re-
registration. Registration is to be renewed only if performance of the vendor has been above
50% on an average.

After completion of 06 years of continuous permanent registration, the vendor is required

to follow entire procedure of registration ab-initio for further renewal of registration.

In case of non-receipt of application for renewal, the vendor is to be de-registered on

expiry of current registration. Applications for renewal received after expiry of registration are to
be treated as new applications and the procedure for registration is to be followed ab-initio.

(h) Concessions/ Privileges to Pmt. Registered Vendors. All Permanent registered

vendors shall be eligible for the following concessions/ privileges:-

(a) Waiver from submission of EMD (Ernest Money Deposit) with bids.

(b) Preferential consideration for issue of TE for cases offloaded on LTE basis.

(c) Preferential consideration for issue of TE directly for cases offloaded on OTE/ LTE
with web upload.

Communication details for registration:

Address for communication:

To
The Admiral Superintendent
[for Manager (Quality Assurance)]
Naval Dockyard
Visakhapatnam- 530014

Contact details:

Tel. : 0891 – 2816384/ 6011

E-Mail: ndvmqa@navy.gov.in
VRF No.:- IR/QA/02-01

VENDOR REGISTRATION FORM

Note:

(a) This information is to be treated as ‘Confidential’.

(b) Vendor is to sign all the pages of the application and enclosures along with the stamp.
(c) All enclosures are to be serially numbered and linked with the relevant paragraphs.

1. Name of the Firm/ Company :

2. Telegraphic Address, FAX and Telephone No. :

3. Nature of Business, whether Manufacturer/Service:

Sub-Contractor/Authorised Agent/Trader

4. Category of Service (viz OEM/Manufacturer, :

Fabricator, Repairer, Supplier/Dealer, Training
Institute, Turn Key Project, Conservancy/
Arboriculture, IT Services etc) being applied for

5. Description of item of manufactured/agency/ :

Services for which registration sought. Also
Indicate trade name of the product.
(Attach separate sheet, if required)

(Details of services/ works of firm/ organization)

6. (a) Factory/Workshop Postal Address & Phone No.:

(b) Registered Office, Postal Address & Phone No.:

(c ) Branch Office, Postal Address and Phone No. :

(d) Sales Office Address and Phone No. :

(e) Postal Address, FAX/Phone No./E-Mail id :

for correspondence.

7. Whether Public Limited/Private Limited/ :

Partnership or Proprietary concerned. Attach
Photo copy of Memorandum/Articles of
Association/Partnership Deed, if applicable

8. Name of Directors/Proprietor/ Managing Partners :

and their interest in other concern.
9. Address of Directors/Partners/Proprietors. :

10. If you are a manufacturer, state whether your :

firm is registered under

(a) Director of Industries/Govt of Andhra Pradesh :

give details such as Regd. No. and date of
Registration with Photostat Copy

(b) Large/Medium/Small Scale Industries(SSI), :

give details such as Regd No. & Date etc.
with Photostat copy

(c) Partnership state whether Registered under :

Indian Partnership Act 1932.

(d) Attach documentary evidence of Factory :

premises.

11. In case you are a Trader:-

(a) Whether you are Registered under Shop :

Establishment Act Certificates. If yes,
attach Photostat copy.

(b) Registration of firms Certificate, if yes. :

attach Photostat copy.

(c) Register of Companies incorporation :

Certificates with Photostatic copy.

(d) Attach documentary evidence of purchase :

of office, shop and go-down.

12. (a) Sales Tax Regd. No. with Photostat copy. :

(b) TIN/CST Regd. No. with Photostat copy. :

(c ) Attach ST clearance certificate for the :

previous year.

13.(a) Income Tax Permanent Account No. :

with Photostat copy.

(b) Attach Photostat copy of Income Tax :

clearance certificate for previous year.

14. Financial Status :-

(a) Copy of last three consecutive years Balance :

Sheets and Profit & Loss statements to be enclosed.
(b) Annual Turnover for the last three years. :
 (c) Assessment report by CRISIL/ SMERA / D&B :
(Mandatory for firms above Rs 25 lakhs
bank solvency).

15. (a) Name of the Bankers Postal Address and :

Telephone No.

(b) Give details of bank credit facilities available to :

you (along with latest bank solvency certificate)

16. (a) Source of Finance :

(b) Borrowing limits as sanctioned by bank, if any :

17. Name and address of associated sister :

Manufacturer / sub-contracting / trading concern.

18. Name and address of your Authorised :

Distributors/ Dealers and their Phone No.

19. Are you registered for the item offered with :

DGS&D. If so, give your registration No.
and submit a Photostat certificate of your
Registration with DGS&D.

20. (a) If an authorised dealer / stockiest / sole :

selling agent / items under authorised agency
(attach Photostat copy of agency / agreement)

(b) Address of godown. :

21. Date of commencement of Business/Product :

item-wise / experience held -

(i) Whether the item(s) completely manufactured. :

If not, names of sub-contractors who supply
major components.

(ii) State availability of after sale services :

facilities.

22. (a) Major orders executed for Govt. / Non-Govt. :

concern attach details of order No. & Date.
value, etc. (During last three years).
(b) Attach performance report from at least :
three of your reputed and major customers.

23. Number and Technical Qualification of :

employees in your firm
(Attach separate sheet, if required)
 Engineers Skilled Semi-Skilled Unskilled Total

(a) Permanent

(b) Temporary

---------------------------------------------------------------------------------------------------
Total :
---------------------------------------------------------------------------------------------------

24. (a) Plant area of your firm. :

(b) List of machinery and equipment available :

in your factory, give Photostat copy of
machinery purchase bills.

(c ) Installed power supply capacity. :

(d) Sources of procurement of Raw Material. :

25. Do you avail yourself of testing facilities outside :

of your organization. If so please indicate the
same and address of testing agency.

26. Name of officials who will directly negotiate or :

transact business with us.

27. (a) Name and postal address / Telex No. of the :

Foreign collaboration, if any.

(b) Name and postal address of Foreign :

Principals, for agency, if any.

28. If stockiest, minimum stock held for each item in :

quantity and value.

29. If importers of raw Materials / Products give :

details of import license, name of suppliers.

30. Give a brief write up of the transaction and :

quality control procedure followed by you.
31. Does your product enjoy quality specification :
approved by Govt. If so details of ESL, BS etc.
enclose product catalogues, price list brochure etc.

32. Name, postal address and Telephone No. of firm :

in which any of Proprietor / Partners / Directors is
associated.

33. (a) Details of registration with :

any Naval units, State, Central Govt. bodies.
(attach copy of registration)

(b) Details of past registration with ND (V) :

 (c) Details of De-Registration/Black Listing/any :
other disciplinary actions initiated against by
ND(V)/any other Naval Organization/Govt. Agency

34. Labour Commission registration details :

(attach copy of registration)

35. Indicate willingness to give Bank Guarantee / :

Standing Securing deposit for period of registration

36. Fixed assets in the name of the Firm. :

37. Name of the relatives working in the :

Naval Dockyard, Visakhapatnam
and their relationship (if any).

38. Photograph of office/factory (External & Internal) :

(Attach copies)

39. Foreign Collaboration, if any(Enclose Separate sheet):

Name & Address of the

Products Year of Collaboration Whether current or not
Collaborator

40. Principal Customers (Enclose Separate sheet) :

Name & Address Supply Order No. & Products Value of Date of
of the customer Date Supplied Supply (Rs.) Supply

41. Future Plans: -

(a) Expansion Programme :

(b) Installation of new machinery :

(c) Additional test facilities :

42. Any other details which you wish to quote

for judging your firms standing in the market. :
 DECLARATION BY THE APPLICANT FIRM

I/we confirm that the information furnished is correct to the best of our
knowledge. I/we understand that if at any later date, it comes to light that any of the information
furnished above is incorrect, my/ our registration will be cancelled without notice and other
appropriate action will also be initiated against me/ us.

SIGNATURES OF DIRECTORS / PROPRIETOR / ALL PARTNERS

(NAME IN BLOCK LETTERS) (SIGNATURE)

1. ----------------------------------- -------------------------

2. ----------------------------------- -------------------------

3. ----------------------------------- -------------------------

4. ----------------------------------- -------------------------

(ATTACH PHOTOGRAPHS OF DIRECTOR/ ALL PARTNERS/ PROPRIETOR)

(COMPANY / FIRM SEAL)

DATE :
PLACE :
 MANDATORY DOCUMENTS FOR VENDOR REGISTRATION
NAVAL DOCKYARD, VISAKHAPATNAM

(1) Year of Establishment proof (State Govt./ Central Govt. issued registration certificates).
(2) Partnership Deed & Registration of firm certificate/ Certificate of incorporation, MoU &
AoA etc.
(3) GST Registration certificates.
(4) Latest Bank Solvency certificate from Bank with minimum of 10 lakhs value (not more
than one year old) indicating Account details.
(5) Profit & Loss and balance sheets (Turnover details) for last 03 years.
(6) Copies of major orders executed (02 work orders for each type of job / each category of
work and it should cover 03 years of experience in core competence in the relevant field).
(7) Registration with Director of Industries/ SSI/ MSME.
(8) Detailed list of manpower employed (viz. Name, designation, qualification and
experience).
(9) ESI and EPF registration Certificates and their payment chalans for last 06 months.
(10) Documentary evidence of your workshop/ factory premises/ shop & godown facility (Own/
lease/ rental deed).
(11) Authorised dealership/ agency certificates for supply items or PAC if any.
(12) Labour Commissioner/ Shops and Establishments registration certificate.
(13) Bankers details.
(14) PAN card details.
(15) After sales service / warranty certificate for your product/ supply of items/ services/
repairs.
(16) Rating certificate & complete report from M/s CRISIL/ SAMERA/ D&B/ Brickwork etc.
(17) Valid vendor registration certificates with DGQA/ Defence/ Defence PSU’s/ Defence
Shipyards etc.
(18) CPPP/ e-Tendering registration user ID and e-mail ID.
(19) List of tools, tackles and machinery held with your Firm.
(20) Copies of ISO certifications.
(21) Feedback of past performance from your customers.
(22) Photographs of your facility/ company.