MMD PROCUREMENT MANUAL FOR NON-AIRCRAFT MATERIALS AND SERVICES MMAO 715 AIR INDIA LTD. MATERIALS MANAGEMENT DEPARTMENT MMAO 715 Materials Management Department TABLE OF CONTENTS Table of Contents ............................................................................................................. 2 I. Preamble .................................................................................................................... 6 II. MMD – Vision & Mission ........................................................................................... 7 III. MMD Objectives ........................................................................................................ 8 IV. MM Cadre Officers’ Pledge/ Oath ............................................................................. 9 V. Abbreviations and Acronyms ................................................................................... 10 VI. Major Contracts under the purview of MMD .......................................................... 12 VII. Major Contracts not under the purview of MMD ................................................... 13 1. Cash Purchases upto ₹ 10,000/- .............................................................................. 14 2. Procurements between ₹ 10,001 and ₹ 50,000 – through GeM Portal .................. 15 3. Procurements between ₹ 10,001 and ₹ 50,000 – through SAP .............................. 17 4. Shopping Cart/Purchase Requisitions for Procurements – Above ₹ 50,000/- ........ 18 5. Tender fee ................................................................................................................ 22 6. Modes of Procurement & Bidding - Tendering Process .......................................... 23 7. Bid System ................................................................................................................ 30 8. e-Procurement ......................................................................................................... 31 9. Reverse Auction ....................................................................................................... 33 10. Spot Purchase by Spot Purchase Committee .......................................................... 36 11. Trial / Development Order ....................................................................................... 39 12. Public Procurement Policy for Micro and Small Enterprises (MSEs) ....................... 40 13. Make In India ........................................................................................................... 43 14. Integrity Pact & IEM ................................................................................................. 50 15. Time Frames for Quotes .......................................................................................... 51 16. Extension of Tender Due/Close Date ....................................................................... 52 17. Tender Document .................................................................................................... 54 18. Turnover Criteria ...................................................................................................... 62 Date of Issue: 15th March 2018 2 MMAO 715 Materials Management Department 19. Bids from OEM/Authorized Distributors / Dealers/Channel Partners .................... 63 20. Submission and Custody of Tender Quotations/ Bids ............................................. 65 21. Earnest Money Deposit (EMD) / Bid Security .......................................................... 66 22. Security Deposit/ Performance Bank Guarantee .................................................... 68 23. Sampling ................................................................................................................... 71 24. Bid Receiving and Opening ...................................................................................... 73 25. Evaluation of Technical Bids .................................................................................... 76 26. Evaluation of Price Bids/ Award Criteria .................................................................. 79 27. Retendering /Calling for Price Bids .......................................................................... 81 28. Loading Criteria in case of Deviation ....................................................................... 82 29. Return of Bids of Disqualified Bidders/ Bids Received Late..................................... 83 30. Submission of Documents ....................................................................................... 84 31. Termination and Exit Clause .................................................................................... 85 32. Negotiations ............................................................................................................. 86 33. Composition of Tender Committee ......................................................................... 88 34. Liquidated Damages/Penalty Clause ....................................................................... 90 35. Role of TC Members ................................................................................................. 93 36. Time Frame for Completion of Tender Evaluation .................................................. 95 37. Extension of Period of Contracts/Purchase Order .................................................. 97 38. Repeat Contracts/Orders ......................................................................................... 98 39. Emergency Purchases by the Departments ............................................................. 99 40. Waiver of Purchase Procedure .............................................................................. 100 41. Buy Back Option ..................................................................................................... 102 42. Publishing of Details of Award of Contracts / PO on the Website ........................ 104 43. Purchase Order Amendments ............................................................................... 105 44. GST & Other Govt Levies and Taxes ....................................................................... 106 45. Payment Terms ...................................................................................................... 107 46. Advance Payment .................................................................................................. 108 47. Exchange Rate ........................................................................................................ 110 Date of Issue: 15th March 2018 3 MMAO 715 Materials Management Department 48. Stores Inspection / Production Sample ................................................................. 111 49. Pre Delivery / Dispatch Inspection ......................................................................... 113 50. Variation of Quantity ............................................................................................. 114 51. Option Clause ......................................................................................................... 115 52. Excess Supply ......................................................................................................... 116 53. Fall Clause .............................................................................................................. 117 54. Force Maejure ........................................................................................................ 118 55. Dispute Resolution ................................................................................................. 119 56. Receipt Certification- for MMD Generated POs .................................................... 121 57. Invoice Processing-For MMD Generated POs ....................................................... 122 58. Standardization ...................................................................................................... 123 59. Material Rejection Intimation ................................................................................ 124 60. Budgeting ............................................................................................................... 125 61. Contract Administration ........................................................................................ 126 62. Vendor Registration ............................................................................................... 128 63. Suspension of Business .......................................................................................... 129 64. Banning of Business ............................................................................................... 130 65. Purchasing at Regions ............................................................................................ 131 66. Delegation of Authority ......................................................................................... 132 67. Annexure ................................................................................................................ 133 Annexure A - Financial Powers .............................................................................. 134 Annexure B - Format for Details of Contract Awarded During the Month (Above ₹ 10 Lakh) ....................................................................................................................... 135 Annexure C - Bank Guarantee Format for SD/PBG ................................................ 136 Annexure D - Items Reserved for SSI / Handicrafts Sector