Contracts Estimates and Procurement Systems
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Questions and Answers

What is the purpose of the estimate prepared by the Controller of Stores?

  • To ensure timely procurement of items held in stock (correct)
  • To avoid the use of a Central Agency
  • To allocate resources for unnecessary items
  • To delay procurement until the last minute

    • What is referred to as the 'Contract Period'?

  • The time frame for contract negotiations
  • The time taken for delivery of items
  • The duration for which estimates are prepared
  • The 12 months period for which the requirement is estimated (correct)

    • Which of the following stages is NOT mentioned in the time table for estimating requirements?

  • Consolidating information from estimates
  • Drafting contracts for suppliers (correct)
  • Reviewing current contracts for supplies
  • Obtaining information from depots

    • What should the time table for preparing estimates ensure?

    <p>Requirement of depots is received simultaneously in COS' office</p> Signup and view all the answers

    What does the 'Interim Period' refer to?

    <p>The duration between the estimate preparation and contract period start</p> Signup and view all the answers

    What type of procurement does the Controller of Stores directly engage in?

    <p>Through both Central Agencies and direct procurement</p> Signup and view all the answers

    Why should the time table for estimate preparation be arranged groupwise?

    <p>To distribute work uniformly over the year</p> Signup and view all the answers

    What triggers the initiation of a recoupment action by the Depot?

    <p>Stocks plus dues reaching minimum buffer level</p> Signup and view all the answers

    What should be done with items that are in stock but have no demands during the current or new contract period?

    <p>They should be handed over to the Surplus Stock Section.</p> Signup and view all the answers

    What does the recoupment sheet primarily exclude in its details?

    <p>Estimated requirement for interim period</p> Signup and view all the answers

    What is the purpose of grouping items of a class into one tender schedule?

    <p>To streamline the contract process and make it more appealing to suppliers.</p> Signup and view all the answers

    What should be reconciled with the purchase sections' records after receiving the recoupment sheet?

    <p>Covered and uncovered dues</p> Signup and view all the answers

    When is a procurement action initiated by the purchase section?

    <p>When there is a net requirement shown</p> Signup and view all the answers

    What should be done with batches that aggregate to less than one thousand rupees for annual requirements?

    <p>They should be set apart and endorsed accordingly.</p> Signup and view all the answers

    What occurs if the consolidation of depot requirements shows a net availability of excess stocks?

    <p>No further procurement action is necessary</p> Signup and view all the answers

    What is required for items procured by central agencies?

    <p>Indents in the prescribed form must be submitted.</p> Signup and view all the answers

    How should group items that differ only in dimensions be treated in tender schedules?

    <p>They can be grouped into one schedule for tender purposes.</p> Signup and view all the answers

    After examining the recoupment sheet, what might be modified?

    <p>Estimated consumption figures</p> Signup and view all the answers

    What does the Depot receive back from the purchase section after initiating procurement action?

    <p>A modified recoupment sheet</p> Signup and view all the answers

    What possible variation is accounted for when determining the quantity for recoupment?

    <p>Lead time variations</p> Signup and view all the answers

    What should be checked before deciding on procurement action?

    <p>Availability of overstock or surplus</p> Signup and view all the answers

    What happens if there is a delay in the supply of stores after the contract delivery period?

    <p>Liquidated damages will be recovered.</p> Signup and view all the answers

    What is required from the supplier within three days of the expiry of the contract delivery period?

    <p>Supply particulars in detail.</p> Signup and view all the answers

    Under what condition may there be no increase in price for stores delivered after the specified date?

    <p>Due to new statutory tax impositions.</p> Signup and view all the answers

    What is the impact of an extension on the price of stores supplied after a certain date?

    <p>No price increases are permitted after the specified date.</p> Signup and view all the answers

    Which office is mentioned for receiving supply particulars?

    <p>The Financial Advisor's Office.</p> Signup and view all the answers

    What must be done with stores that have not yet been inspected?

    <p>They should be inspected accordingly.</p> Signup and view all the answers

    What can the supplier tender after receiving the extension?

    <p>The balance of stores.</p> Signup and view all the answers

    What type of damages are associated with delayed delivery?

    <p>Liquidated damages.</p> Signup and view all the answers

    What is explicitly stated about price increases related to customs or excise duties?

    <p>They will not be admissible on stores delivered post the specified date.</p> Signup and view all the answers

    What document relays information for necessary actions needed after contract delivery expiry?

    <p>The conditions for extension letter.</p> Signup and view all the answers

    What entitles the purchaser to a decrease in price according to the terms outlined?

    <p>Reductions in customs duty</p> Signup and view all the answers

    What consequence is stated if the contractor fails to deliver within the extended period?

    <p>The contract shall be cancelled</p> Signup and view all the answers

    How many copies of the specified form should be prepared?

    <p>Five</p> Signup and view all the answers

    What should be done with obligatory quantities that are not fully drawn from a firm?

    <p>Issue timely notices to firms</p> Signup and view all the answers

    What must the supplying firm do if they wish to leave the quantities undrawn at the end of a contract period?

    <p>Contact the Controller of Stores</p> Signup and view all the answers

    What does the term 'material outstanding with firms' refer to?

    <p>Items that have not been fully drawn from firms</p> Signup and view all the answers

    What happens if a contractor declines to accept the extension on the specified conditions?

    <p>The outstanding quantity may be purchased at risk and cost</p> Signup and view all the answers

    Which of the following officers should receive a copy of the completed form?

    <p>Accounts Officer</p> Signup and view all the answers

    What must be included in the notice issued to firms regarding remaining obligatory quantities?

    <p>The quantity of items available for purchase</p> Signup and view all the answers

    What is to be done if the contractor fails to act upon the extension after accepting it?

    <p>The remaining stores will be canceled</p> Signup and view all the answers

    Which of the following items is NOT included in a typical contract estimate sheet?

    <p>Supplier's delivery schedule</p> Signup and view all the answers

    What is the ideal requirement for the interim period in the contract estimate sheet?

    <p>NIL</p> Signup and view all the answers

    Which factor may cause variations between average consumption and estimated consumption?

    <p>Seasonal demand fluctuations</p> Signup and view all the answers

    What action should a depot take if the estimated requirement indicates negative values?

    <p>Initiate a recoupment plan</p> Signup and view all the answers

    In what context must additional information from a computerized system be determined by the Controller of Stores?

    <p>Preparation of contract estimates</p> Signup and view all the answers

    What is the best course of action if the quantities ordered for the contract period are found to be insufficient?

    <p>Adjust future estimates based on current shortfall</p> Signup and view all the answers

    Which of the following statements regarding contract estimate sheets is correct?

    <p>They should contain adequate data for checking by COS' office.</p> Signup and view all the answers

    What should happen to items that exceed the requirements for the current and new contract periods?

    <p>They should be forwarded to the Surplus Stock Section.</p> Signup and view all the answers

    Which condition allows items to be grouped into a single tender schedule?

    <p>Items must differ only in specifications such as dimensions.</p> Signup and view all the answers

    What is the minimum aggregate value for batches of grouped items to warrant additional preparations for tender schedules?

    <p>One thousand rupees.</p> Signup and view all the answers

    What should indents for items procured by central agencies reflect?

    <p>The distribution of quantities to various consignees.</p> Signup and view all the answers

    What should be done with Grouping Forms that contain items with no current demands?

    <p>They should be handed to the Surplus Stock Section.</p> Signup and view all the answers

    What should the depot provide to explain variations between estimated requirements and actual average consumption?

    <p>Adequate remarks</p> Signup and view all the answers

    Which items are included under 'True Issues' when making depot forecasts?

    <p>Recoup imprest stock</p> Signup and view all the answers

    What is not considered a part of ordinary stores issues when forecasting?

    <p>Depot transfers</p> Signup and view all the answers

    What is the proposed document used for consolidating annual estimates from various depots called?

    <p>Contract Grouping and Allotment Form</p> Signup and view all the answers

    When consolidating depot estimates, what type of issues are excluded from the 'True Issues' consideration?

    <p>Sales and adjustments</p> Signup and view all the answers

    In the context of depot estimates, what is essential to comment on when variations occur?

    <p>Remarks clarifying the situation</p> Signup and view all the answers

    What distinguishes 'True Issues' from other depot/store-related issues?

    <p>They only involve recurring supplies.</p> Signup and view all the answers

    Which element is essential to include on the consolidated estimate proforma for better tracking?

    <p>Contract period</p> Signup and view all the answers

    What type of variations should the depot be cautious of while preparing forecasts?

    <p>Average consumption rates</p> Signup and view all the answers

    What should be done to the records of the purchase section after the recoupment sheet is received?

    <p>They should be updated as required.</p> Signup and view all the answers

    Which statement correctly reflects the reviewing process of the estimated consumption provided by the depots?

    <p>Discrepancies should be assessed for their impact on inventory.</p> Signup and view all the answers

    What is the significance of the Contract Grouping Form in inventory management?

    <p>It consolidates all depot demands for an item on one sheet.</p> Signup and view all the answers

    What should the position of covered and uncovered dues reflect?

    <p>A comparison with the purchase section's historical records.</p> Signup and view all the answers

    Which of the following actions is necessary if the groupwise arrangement of procurement leads to insufficient stock estimates?

    <p>Modify the estimates based on the critical review.</p> Signup and view all the answers

    What crucial documentation must be consulted regarding surplus and overstocks available in inventory?

    <p>The History-cum-Rate Card (S-637).</p> Signup and view all the answers

    What should happen to the records from different depots after compiling the Contract Grouping Form?

    <p>They should be analyzed for discrepancies.</p> Signup and view all the answers

    After a contractor fails to deliver within the extended period, what should the Controller of Stores expect?

    <p>A formal notice detailing consequences for the contractor.</p> Signup and view all the answers

    Which condition must be met for suppliers to avoid price increases on late deliveries?

    <p>An extension must be agreed upon under specified conditions.</p> Signup and view all the answers

    What does the term 'material outstanding with firms' imply within the context of procurement?

    <p>Goods that the supplier has failed to deliver as scheduled.</p> Signup and view all the answers

    What is the consequence specified for a contractor if they fail to deliver the stores within the extended period?

    <p>The contract will be canceled and outstanding quantities purchased at the contractor's risk.</p> Signup and view all the answers

    Which action should be taken by firms regarding outstanding quantities at the end of a contract period?

    <p>Firms wishing to leave quantities undrawn should notify the Controller of Stores.</p> Signup and view all the answers

    What benefits might a purchaser be entitled to after the expiration of the delivery period due to price variations?

    <p>Decreases in taxes or duties may result in a decrease in store prices.</p> Signup and view all the answers

    What should occur with obligatory quantities that have not been fully drawn by the railway from a firm?

    <p>Timely notices should be issued to firms to request drawing the balances.</p> Signup and view all the answers

    How many copies of the specified form should be distributed according to the outlined procedures?

    <p>Five copies to designated recipients.</p> Signup and view all the answers

    What must a supplying firm do if they choose not to draw the obligatory quantities at the end of the contract?

    <p>Notify the Controller of Stores about their decision.</p> Signup and view all the answers

    What is a possible outcome if the contractor declines to accept the extension on specified conditions?

    <p>The contract will be canceled with outstanding quantities managed at the contractor's risk.</p> Signup and view all the answers

    What happens to any increases in price due to customs or excise duties after the set date?

    <p>Price increases related to customs duties are not applicable.</p> Signup and view all the answers

    What should be included in the notices issued to firms regarding remaining obligatory quantities?

    <p>Instructions to notify the Controller of Stores about desired balances.</p> Signup and view all the answers

    What is required from the supplier within three days after the delivery period expiration?

    <p>Confirmation of quantities delivered and any discrepancies.</p> Signup and view all the answers

    Study Notes

    Contracts Estimates

    • Estimating Procurement Requirements: The Controller of Stores must predict future needs for each item in stock to ensure timely procurement. Procurement can happen through a central agency (like DGS&D) or directly.
    • Annual vs. Interim Periods: Annual estimates are for items procured centrally, while estimates for items procured directly by the Controller of Stores can be annual, maximum/minimum, or other specific basis.
    • Annual Procurement System: Before estimating, the Controller needs depot-specific estimates, consolidates them to a railway-wide total, and reviews current contracts to modify scopes. Depots create their own schedules to meet deadlines.
    • Contract Estimates of Depots: Depot estimates cover both contract and interim periods. They must provide sufficient data for checking in the Controller of Stores' office.

    Maximum/Minimum Procurement System

    • Maxima/Minima Basis: The Controller of Stores decides which procurement items are on a maximum/minimum basis, following guidelines. Recoupment action is started once the quantity is below the minimum.
    • Recoupment and Scrutiny: Depot submits a recoupment sheet, identical to the stock requisition sheet except without estimated needs for interim/contract periods, and these are reviewed and adjusted.
    • Advice to Depot: When a net requirement exists after review, the purchase section initiates actions; otherwise, the sheet is filed. The updated sheet is returned.
    • Review of Current Contracts: Existing contracts are reviewed to potentially modify or cancel outstanding quantities.

    Stores Department Modification/Cancellation of Purchase Order

    • Modification/Cancellation Notice: A form details alterations or cancellations of purchase orders, retaining unchanged conditions and specifying reasons.

    Conditions

    • Liquidated Damages: If supply is delayed beyond the contracted period, you'll be charged damages.
    • Price Increase/Decrease: Price changes due to taxes and duties after the delivery date aren't applicable, but any price decrease will be applied.

    Other Information

    • Contract Grouping Form: This form consolidates depot estimates, showing both required and excess supplies. It aids procurement decisions.
    • Materials Outstanding with Firms: If items aren't fully drawn by the end of a contract, a notice is sent to the firm.
    • Tender Schedules: Items with similar specifications can be grouped into one tender, simplifying procedures.
    • Central Agency Procurement: Indent forms are used for materials acquired by agencies like DGS&D.
    • Shop-Manufactured Items: Shop-manufactured items are added to the grouping form, and their annual needs are predicted for the Chief Mechanical Engineer.
    • Permanent Way Materials: Special arrangements exist for procurement of permanent way goods; a forecast is based on previous three years' data plus construction plans.
    • Acceptance of Tenders: A formal acceptance form details terms and conditions of accepted tenders (contracts).
    • Office Copy and Distribution: Various copies of important forms are created and given to different groups and individuals. Copies include offices and individuals.
    • Stock Card History: The stock card maintains the history of acquisition and consumption of items.

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    Indian Railways Store Department Code Vol-1, Ch-6 PDF

    Description

    This quiz focuses on understanding contracts estimates and procurement systems used by the Controller of Stores. It covers the differences between annual and interim estimates, as well as the maximum/minimum procurement system. Test your knowledge on how depot estimates are consolidated and reviewed for effective procurement.

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