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Questions and Answers
When should full payment for stores be made?
When should full payment for stores be made?
What is required before making advance payment to firms?
What is required before making advance payment to firms?
In exceptional cases involving import, what must be done if prior inspection is not possible?
In exceptional cases involving import, what must be done if prior inspection is not possible?
Who has the discretion to invite tenders from abroad?
Who has the discretion to invite tenders from abroad?
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Why should tenders be invited from abroad as well as in India?
Why should tenders be invited from abroad as well as in India?
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What is the standard medium for public advertisements in India?
What is the standard medium for public advertisements in India?
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What should be done to promote tenders invited from abroad?
What should be done to promote tenders invited from abroad?
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When is the acceptance of a tender considered complete if posted via registered post?
When is the acceptance of a tender considered complete if posted via registered post?
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What should be taken into consideration along with quotations from supplying firms for purchasing materials?
What should be taken into consideration along with quotations from supplying firms for purchasing materials?
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Which factor is NOT mentioned as a reason to divide contracts?
Which factor is NOT mentioned as a reason to divide contracts?
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What is required before placing an order for imported articles after inviting tenders for locomotive components manufactured in India?
What is required before placing an order for imported articles after inviting tenders for locomotive components manufactured in India?
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For tenders over Rs. 8 crores or Rs. 2 crores involving foreign exchange, what is required before acceptance?
For tenders over Rs. 8 crores or Rs. 2 crores involving foreign exchange, what is required before acceptance?
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What should be done if the response to an invitation to tender is poor?
What should be done if the response to an invitation to tender is poor?
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Which consideration is important when inviting tenders financed through foreign loans?
Which consideration is important when inviting tenders financed through foreign loans?
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What information must tenderers provide regarding their products?
What information must tenderers provide regarding their products?
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How should offers for imported articles be evaluated?
How should offers for imported articles be evaluated?
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What basis should contracts for imported articles generally be finalized on?
What basis should contracts for imported articles generally be finalized on?
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What should be considered when specifying the point or place of delivery?
What should be considered when specifying the point or place of delivery?
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In the case of imported articles, which additional terms may be justified for contracts?
In the case of imported articles, which additional terms may be justified for contracts?
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Who are typically instructed to submit tenders?
Who are typically instructed to submit tenders?
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What is the primary reason for providing sufficient time for submitting tenders?
What is the primary reason for providing sufficient time for submitting tenders?
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What is the estimated purchase value that mandates the use of the OPEN Tender System in normal circumstances for items other than safety items?
What is the estimated purchase value that mandates the use of the OPEN Tender System in normal circumstances for items other than safety items?
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In emergency procurement, what is the value threshold for the OPEN Tender System to be applicable?
In emergency procurement, what is the value threshold for the OPEN Tender System to be applicable?
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Which document is NOT required from firms not on the list of approved contractors when submitting a tender?
Which document is NOT required from firms not on the list of approved contractors when submitting a tender?
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What is required to determine if a tender from an unknown firm is satisfactory before placing an order?
What is required to determine if a tender from an unknown firm is satisfactory before placing an order?
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What happens to the name of a firm if their executed order is satisfactory?
What happens to the name of a firm if their executed order is satisfactory?
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Which of the following states the maximum value for safety item procurement via the OPEN Tender System?
Which of the following states the maximum value for safety item procurement via the OPEN Tender System?
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What must firms submit along with their quotation, according to the prescribed proforma?
What must firms submit along with their quotation, according to the prescribed proforma?
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What should be recorded if an inquiry about an unknown firm yields unsatisfactory results?
What should be recorded if an inquiry about an unknown firm yields unsatisfactory results?
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What is the purpose of inviting tenders by public advertisement according to the OPEN Tender System?
What is the purpose of inviting tenders by public advertisement according to the OPEN Tender System?
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Which of the following is NOT an exception to the general rule of using the OPEN Tender System?
Which of the following is NOT an exception to the general rule of using the OPEN Tender System?
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Which supply order value range requires firms to be a manufacturer or an authorized agent?
Which supply order value range requires firms to be a manufacturer or an authorized agent?
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What is the revised limit for firms executing supply orders as per the new regulations?
What is the revised limit for firms executing supply orders as per the new regulations?
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What is required for a firm to be included in the approved list of suppliers?
What is required for a firm to be included in the approved list of suppliers?
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What should be done if firms not on the approved list are to be issued limited tender enquiries?
What should be done if firms not on the approved list are to be issued limited tender enquiries?
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What is the minimum number of firms to which limited tender enquiries should preferably be issued?
What is the minimum number of firms to which limited tender enquiries should preferably be issued?
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What happens if a firm is pre-inspected and found fit for the approved list of one Railway?
What happens if a firm is pre-inspected and found fit for the approved list of one Railway?
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What is one of the criteria for assessing a firm's capability before registration?
What is one of the criteria for assessing a firm's capability before registration?
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Which of the following is a correct statement regarding registration of firms?
Which of the following is a correct statement regarding registration of firms?
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What is the maximum order value mentioned for firms capable of executing orders to be newly registered?
What is the maximum order value mentioned for firms capable of executing orders to be newly registered?
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What detailed information must firms not on the approved contractors' list provide when submitting a tender?
What detailed information must firms not on the approved contractors' list provide when submitting a tender?
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In what scenario should the OPEN Tender System be used for the procurement of safety items?
In what scenario should the OPEN Tender System be used for the procurement of safety items?
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What action should be taken if inquiries about a tender from an unknown firm prove unsatisfactory?
What action should be taken if inquiries about a tender from an unknown firm prove unsatisfactory?
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What document must firms provide related to income when submitting a tender for the first time?
What document must firms provide related to income when submitting a tender for the first time?
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Under what condition can a firm not on the approved contractor list be added to that list?
Under what condition can a firm not on the approved contractor list be added to that list?
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What is the primary consideration when choosing suppliers for purchases of railway stores?
What is the primary consideration when choosing suppliers for purchases of railway stores?
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Which of the following categories of articles is prioritized last when making purchases?
Which of the following categories of articles is prioritized last when making purchases?
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What condition must articles produced in India meet for them to be accepted as a priority?
What condition must articles produced in India meet for them to be accepted as a priority?
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How should articles from the second category, partially manufactured in India, be evaluated?
How should articles from the second category, partially manufactured in India, be evaluated?
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Which of the following is NOT a source of supply for stores as per the established purchasing policy?
Which of the following is NOT a source of supply for stores as per the established purchasing policy?
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When considering foreign articles held in stock in India, what is the necessary condition for their acceptance?
When considering foreign articles held in stock in India, what is the necessary condition for their acceptance?
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What is one of the main objectives of the government's purchasing policies regarding stores?
What is one of the main objectives of the government's purchasing policies regarding stores?
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How many items are currently reserved for exclusive purchase from KVIC/Women’s Development Corporations/Small Scale Sector Units?
How many items are currently reserved for exclusive purchase from KVIC/Women’s Development Corporations/Small Scale Sector Units?
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What criteria defines a Public Sector Undertaking according to the directives mentioned?
What criteria defines a Public Sector Undertaking according to the directives mentioned?
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What is the currency condition for articles required to be purchased for Indian Railways that do not need special import?
What is the currency condition for articles required to be purchased for Indian Railways that do not need special import?
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What percentage of paid-up share capital defines a company as a Public Sector Undertaking?
What percentage of paid-up share capital defines a company as a Public Sector Undertaking?
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For imported articles, what currency should the payment normally be made in?
For imported articles, what currency should the payment normally be made in?
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Which organization is responsible for revising the items reserved for small scale sector purchases?
Which organization is responsible for revising the items reserved for small scale sector purchases?
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What should be done regarding items requiring special import according to the directives provided?
What should be done regarding items requiring special import according to the directives provided?
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What directive governs the purchase price preference associated with Public Sector Undertakings?
What directive governs the purchase price preference associated with Public Sector Undertakings?
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For articles requiring import, which expense must be paid in Indian currency?
For articles requiring import, which expense must be paid in Indian currency?
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What must be provided to claim advance payment when making payments against shipping documents?
What must be provided to claim advance payment when making payments against shipping documents?
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In what circumstance can advance payment be made to firms before the delivery of stores?
In what circumstance can advance payment be made to firms before the delivery of stores?
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Which of the following measures is NOT recommended for ensuring economic purchase when inviting tenders?
Which of the following measures is NOT recommended for ensuring economic purchase when inviting tenders?
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Who is responsible for the discretion to invite tenders from abroad according to the guidelines?
Who is responsible for the discretion to invite tenders from abroad according to the guidelines?
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What is required if a prior inspection of imported articles is not possible?
What is required if a prior inspection of imported articles is not possible?
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To ensure adequate publicity for tenders, which publication is regarded as the standard medium in India?
To ensure adequate publicity for tenders, which publication is regarded as the standard medium in India?
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What action should be taken if tender responses are insufficient?
What action should be taken if tender responses are insufficient?
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What may be utilized for additional publicity when inviting tenders from abroad?
What may be utilized for additional publicity when inviting tenders from abroad?
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Which of the following statements is incorrect regarding the tender process?
Which of the following statements is incorrect regarding the tender process?
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What is one of the requirements for inviting tenders according to the guidelines?
What is one of the requirements for inviting tenders according to the guidelines?
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What should be done if the invitation to tender receives a poor response?
What should be done if the invitation to tender receives a poor response?
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When evaluating offers involving foreign currency payments, what must be done with the offers?
When evaluating offers involving foreign currency payments, what must be done with the offers?
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What information must tenderers provide regarding the materials used?
What information must tenderers provide regarding the materials used?
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When specifying the point or place of delivery, what is the aim?
When specifying the point or place of delivery, what is the aim?
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For articles needing import, how should contracts be typically finalized?
For articles needing import, how should contracts be typically finalized?
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What should be considered when the purchases are financed through foreign loans?
What should be considered when the purchases are financed through foreign loans?
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What factors may justify imports under different basis terms such as CFR or CIF?
What factors may justify imports under different basis terms such as CFR or CIF?
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How should adequate time for submission of tenders be determined?
How should adequate time for submission of tenders be determined?
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What must be done if imports are required but the usual inspection is not feasible?
What must be done if imports are required but the usual inspection is not feasible?
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Study Notes
Purchase of Stores: Policy and Rules
- Four sources of supply for railway materials: Purchases, railway workshops, returned stores, and transfer from other railways/departments
- Purchases are the most important source, aligned with government policy encouraging Indian industries
- Order of preference for purchases:
- Firstly, articles produced in India from Indian raw materials.
- Secondly, articles partially or wholly manufactured in India from imported materials.
- Thirdly, articles of foreign manufacture held in stock in India.
- Fourthly, articles manufactured abroad requiring import.
- Quality: Quality must be sufficiently good for the purpose, and for category three, the condition is that the articles are of suitable type and requisite quality.
- Articles from the first two categories should be accepted unless their quality is demonstrably substandard, even if imported articles are higher quality
- Railway Board letter no. 95/RS(G)/768 dated 17.08.1995, and Ministry of Finance S.O.M no. F. 23 (2) –E.II(A)/92 dated 24.6.92, and Railway Board's Letter No. 95/RS(G)/768 dt 17.08.1995 are relevant documents.
- Price preference for products of small scale industries:
- Items reserved for exclusive purchase from KVIC/Women's Development Corporations/Small Scale Sectors Units (409 items currently )
- Subject to revision by Railway Board
- Guidelines by the Department of Supply, Government of India
- Other items not so reserved
Currency of Payment
- Payment for most Indian Railway purchases should be made in Indian rupees.
- Imported items may be paid for in the currency of origin or a widely used international currency
- Agency commissions (if any) should be paid in Indian rupees.
Payment
- Full payment should be made after stores delivery, inspection, and satisfaction.
- Advance payment may be permitted in specific cases with security and inspected shipment.
Publicity and Tenders
- Tenders should be invited in India and abroad if needed for economic purchase.
- The Indian Trades Journal is the primary medium for public advertisements in India. Other publications may be used at the discretion of the Purchasing Officer.
- Embassies/Trade Commissioners in other countries can be utilized for additional publicity.
- Tenders should be invited to accommodate enough time for submissions
- Financial aid conditions should be considered if applicable (foreign loans)
Country of Manufacture
- Tenderers should reveal the country of origin/manufacture of materials.
Evaluation of Offers/Payment in Foreign Currency
- Offers involving foreign currency payments are converted to Indian rupees at the official rate for comparison..
Place of Delivery
- Delivery terms should provide equal opportunities for competitive pricing
- Import contracts should often be finalized on an F.O.B./F.A.S. basis (Free on Board/Free Alongside Ship).
- Other bases (C.F.R. / C.I.F.) might be used if appropriate.
Price Preference for Early Delivery
- Higher quotations for earlier delivery are prioritized
- Contractors are liable for the difference between their contracted rate and that of the lowest acceptable tender, including associated costs, for any failure to meet early delivery dates..
Indian Agents for Tenderers Abroad
- Tenderers should specify Indian agents (if applicable including extent of authority, commission payable, and currency)
Tendering Methods (Open, Limited, Single)
- Open tenders are used for a general procurement approach and can be used if the estimated value exceeds Rs. 10 lakhs and/ or Rs 2 crores, for safety items, emergencies or if the vendors' list is issued by a centralized body.
- Limited tenders are primarily used for items with an estimated value up to Rs. 10 Lakhs (or 2 Crores in certain regulated cases) and only certain qualified suppliers are allowed to bid
- Single tenders are used for orders not exceeding either 3 Lakhs (non-proprietary) or 5 lakhs (proprietary) for specific circumstances.
- Procedures must respect all rules for proper tendering
Classes of Tenders
- By advertisement, by direct invitation, or by invitation to one designated firm
- Tenders should be given very serious consideration, where applicable as a method to lower procurement prices
Additional Points
- If there is poor response to tender invitations, new invitations should be issued.
- Inspection of delivered items (whether manufactured in India or abroad) to ensure compliance with specifications is required.
- If necessary, specialized institutions (such as RDSO, RI&TS, or DGS&D) can be utilized for inspection
- Appropriate nomenclature should be used in invitations for tenders
- If needed, contracts can be split between several firms to accommodate their capabilities
Tender Committee & Powers of Stores Officers
- Each tender value range has specific relevant authority level for acceptance (e.g., JAG / SAG / PHOD/CHOD/AGM/GM) for approval.
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Description
Explore the essential policies and rules governing the purchase of railway materials. This quiz covers the sources of supply, order of preference for purchases, and quality standards set forth by the Railway Board. Test your knowledge on how Indian industries are prioritized in procurement processes.
