PC Raksha Precis - Procedure for ASC Contracts (PDF)

PC /RAKSHA/63060/Q/ST-5/3633/D (QS) Government of India Ministry of Defence New Delhi 26th Sep 06 To, The Chief of the Army Staff New Delhi PROCEDURE FOR CONC...

PC /RAKSHA/63060/Q/ST-5/3633/D (QS) Government of India Ministry of Defence New Delhi 26th Sep 06 To, The Chief of the Army Staff New Delhi PROCEDURE FOR CONCLUSION OF ASC CONTRACTS FOR PERISHABLE ITEMS CHAPTER I INTRODUCTION Sir, 1. I am directed to convey sanction of the President for the adoption of revised procedure for conclusion of ASC Contracts for perishable items as contained in this letter. 2. The procedure has been laid out in following chapters: - (a) Chapter I. Introduction. (b) Chapter II. Registration and Re-verification of Contractors and Contract Carrying Capacity. (c) Chapter III. Removal, Suspension and Banning of Contractors. (d) Chapter IV. Action before Receipt of Tenders. (e) Chapter V. Action after Receipt of Tenders. (f) Chapter VI. Combination, Extension, Revision and Termination of Contracts. (g) Chapter VII. Conclusion.  2 CHAPTER II REGISTRATION AND RE-VERIFICATION OF CONTRACTORS AND CONTRACT CARRYING CAPACITY SECTION A REGISTRATION 3. Perishables and other items of ration required for consumption by troops and to be supplied by ASC, will be procured from registered ASC Contractors. Any person, being citizen of India, who wishes to supply articles of ASC responsibility, may apply to MGASC Command on a plain paper expressing his/her/their willingness to be registered as an ASC Contractor. 4. MGsASC Commands will insert advertisements annually, during the months of Nov/Dec, giving the types of contracts concluded in that Command and inviting potential suppliers to register themselves as ASC Contractors. A specimen of the advertisement to be published is placed at Appendix A. The advertisements will be published, in two National daily newspapers and two regional daily newspapers depending on the Command, through Director of Advertisement and Visual Publicity, Ministry of Information and Broadcasting, Government of India, New Delhi. In addition, the advertisement will also be put on the website of Army/ASC. 5. Procedure for Registration of ASC Contractors. The procedure to be followed for registration of prospective ASC Contractors and the duties of various ASC functionaries as regards the registration are given at Appendix B. Requisites for Registration 6. All applicants desirous of being registered as ASC Contractors will be required to pledge an FDR in favour of the concerned MGASC Command as a refundable fee for the purpose of registration. The value of such FDR will be 0.2 percent of the contract carrying capacity for which the applicant wishes to be registered as ASC Contractor and must be valid for minimum 06 years from the date of application. The said FDR will be renewed again at the time of re-verification of the Contractor. This FDR can be utilized by the MGASC for recovery of any  3 dues outstanding against the Contractor on behalf of the Government, in case the Contractor continually refuses to pay those dues despite intimations. This FDR will be returned to the Contractor in case he wishes to get de-registered from the list of ASC Contractors, after clearing all his dues towards the Government. However, in case of removal/suspension/banning of the applicant due to his default, this amount will be forfeited to the Government. As regards existing Contractors on the approved list, the Contractors will be asked to deposit such FDR within six months of the intimation to them after issue of this letter, failing which, re-verification of their firms will be ordered, irrespective of the date of their initial registration. 7. (a) Every precaution should be taken to ensure that only reliable persons/firms of sound financial standing and experience in the line are registered as ASC Contractors. No one of doubtful integrity, loyalty and financial status will be placed on the approved list. (b) The names of persons/firms will be placed on the approved list only when they produce a photocopy of PAN card and the last Income Tax Return filed by them. Those Contractors, whose names are already borne on the approved list, will be asked to produce a photocopy of their PAN card, within six months of the intimation to them after issue of this letter, failing which their re- verification will be ordered, irrespective of the date of their initial registration. However, the requirement of obtaining PAN card and last Income Tax Return from the persons belonging to Scheduled Tribes which are exempted from payment of Income Tax as per Govt Orders, be dispensed with for registration as an approved ASC contractor, as well as for seeking tenders for conclusion of ASC contracts. 8. Contractors will be registered only for those items in which they are genuinely interested and in which they have been dealing in their normal course of profession and show some expertise. Contractors may be registered for one or more of the following items: - (a) Meat dressed. (b) Meat on Hoof (MOH). (c) Fish.  4 (d) Chicken dressed/alive. (e) Eggs. (f) Potatoes. (g) Onion. (h) Vegetable fresh. (j) Fruit fresh. (k) Firewood all types. (l) Lime quick. (m) Charcoal. (n) Ice (MM). (o) Mineral/Aerated water. (p) Milk. (q) Butter. (r) Bread. (s) Any other article/services not included in the above and which is the responsibility of ASC to supply/provide. 9. Registration of Contractors will not be restricted to any station/stations, i.e. a Contractor registered for particular item(s) in a Command, will be free to quote for those item(s) in any station(s) of that Command. 10. If and when the applicant is registered as an approved ASC Contractor for any specific item(s), he/she/they will be informed accordingly by MGASC as per the letter given at Annexure 8 to Appendix B. If the applicant is not registered as an approved Contractor, he/she/they will be informed accordingly by MGASC as per the specimen letter given at Annexure 1 to Appendix B.  5 11. All approved ASC Contractors will be allotted a ‘Registration Number’ after completion of their registration. MGASC will maintain an up-to-date list of approved ASC Contractors within his Command. The list will show all the particulars given in IAFS-1521 (Y) and IAFZ-2119 (revised). DDST Corps/DDST Area/CO ASC Bn/ADST Sub Area will also maintain up-to-date list in respect of their Corps/Area/Division/Sub Area. Copies of the list and amendments thereto will be forwarded to staff at all levels by the Executive Officers. 12. In addition to the ‘Approved list of ASC Contractors’ following lists will also be maintained by the officers concerned: - (a) An alphabetical list of the names of registered Contractors, showing pages in which the details as shown in the approved list will be found. (b) Item-wise list of Contractors who have been registered in that Sub Area/Division/Corps/Area/ Command. The average value of the contract for its whole period should be shown at the head of each such list. 13. A consolidated list of approved ASC Contractors, as per para 11 above, will be sent to Integrated Headquarters of MoD (Army) by all MGsASC Commands so as to reach by 1st Jan each year. SECTION B FIXING AND TRANSFER OF CONTRACT CARRYING CAPACITY 14. Contractors will be registered for item(s) as specified by them in their application. The contract carrying capacity of Contractors will be fixed on the actual amount a Contractor is capable of investing in business in ASC contracts. Before fixing this capacity, it will be ensured that the prospective Contractor is capable of investing this amount, based on the details given by him regarding his immovable assets and the capital already invested by him elsewhere. This information will be checked against the details obtained from civil authorities, banks and other conditions outlined in Appendix B. Following assets to the extent prescribed will be considered for fixing the contract carrying capacity: -  6 (a) 100 percent value of: - (i) Irrevocable Bank Guarantee from a scheduled commercial bank. A specimen of Bank Guarantee Bond is placed at Appendix ‘L’ attached to this letter. (ii) National Saving Certificates and/or other Small Saving Scheme Certificates (all issues) in his/her/their own name. (iii) Un-alienated and unencumbered immovable property in his/her/their own name, only if duly mortgaged in favour of Govt of India. A specimen of mortgage deed is placed at Appendix ‘M’ attached to this letter. (iv) Govt Promissory Notes. (v) FDRs. (vi) In addition, all securities approved by the RBI, as available on their website will be considered in full. (b) FDRs and all other financial instruments will not be allowed to be encashed during the period of registration. (c) Movable property like vehicles, jewellery, cash etc. will not be taken into account. 15. The contract carrying capacity will be decided by multiplying twenty four times the amount, which the Contractor is capable of investing in ASC contracts. The Contractor for fresh supplies would then be grouped into any one of the three broad Categories viz Class ‘A’ ,Class ‘B’ and Class ‘C’ as given below: - (a) Class ‘A’ Contractors. Contract carrying capacity of these Contractors would be above Rs 7.20 crores. They will be allowed to bid only for contracts sanctioned by QMG and GOsC-in-C under the delegated financial powers. (b) Class ‘B’ Contractors. Contract carrying capacity of these Contractors will be above Rs 2.40 crores and upto Rs 7.20 crores. These Contractors will be allowed to bid only for contracts that are  7 sanctioned by Commanders Area/Division, GOsC Corps and GOsC-in-C Commands under the inherent financial powers. (c) Class ‘C’ Contractors. Contract carrying capacity of these Contractors will be upto Rs 2.40 crores. They will be allowed to bid only for contracts sanctionable by Sub Area Commander or their equivalent CFA’s. Minimum amount a Contractor must invest in ASC contracts to be categorized in category C will be Rs 83000/- (arrived at by dividing Rs 20 lakhs by twenty four). (d) However, the restriction of classification of Contractors /firms for participation in contracts may be dispensed with for the contracts of meat group items, i.e. contracts of meat dressed, MOH, chicken/broiler, subject to the condition that value of all the contracts awarded to a registered Contractor shall not exceed his contract carrying capacity. 16. A Contractor can apply for transfer of his contract carrying capacity from one Command to another only after three years of his initial registration. In case a Contractor applies for transfer of his capacity from one Command to another, the following procedure will be followed: - (a) MGASC of the parent command, where the Contractor is initially registered, will entertain request for transfer of capacity to another Command (s) only when he has seen the performance of the Contractor for at least one year in his Command, with effect from the date of his last revision of contract carrying capacity, if any. (b) When a Contractor has shown satisfactory performance for the last one year, based on the criteria laid down vide Integrated Headquarters of MoD (Army) letter No 63148/Q/ST-5 dated 17 Dec 2003, and wishes to get upto 75 percent of his capacity transferred, MGASC Command will ask him to specify the amount and the Command(s) to which he wants his capacity to be transferred. MGASC Command will then forward his recommendations within 45 days of receipt of such application along with the application of the Contractor to the MGASC of the Command to which the Contractor wishes capacity allocated. A copy of this communication along with copy of the application of the Contractor will also be sent to Integrated Headquarters of MoD  8 (Army) (ST-5). While forwarding the recommendations, MGASC of the parent Command will invariably forward the details of contracts held by the applicant in his Command during the last three years and his performance. In case the Contractor’s performance has been unsatisfactory, MGASC of the parent Command has the right to deny the Contractor the transfer of his contract carrying capacity for additional two yrs based on the performance report on the contracts undertaken by him and recommendations of the technical heads of lower formations on such performance reports. (c) On acceptance of the contract carrying capacity by the MGASC of the Command to which it has been transferred, the parent MGASC will forward a certified true copy of all documents in respect of the subject Contractor taken from him at the time of registration/re-verification to the former MGASC. (d) The capacity once transferred from the parent Command will be reduced from his overall contract carrying capacity of the parent Command and will be awarded contracts according to the revised contract carrying capacity. He may be awarded contracts in other Command(s) based on the contract carrying capacity transferred by the MGASC of the transferred Command. (e) The option regarding quantum of contract carrying capacity once exercised would be final. No revision/transfer of contract carrying capacity will be permitted once the tendering process in any Command has commenced, i.e. from 15 Dec to 31 Mar and 15 Jun to 30 Sep every year. The contract carrying capacity, however, will not be revised more than once in two years. This will include all kinds of revision of contract carrying capacity, i.e. increase/decrease or transfer of contract carrying capacity to any Command, re-verification, etc. (f) Any disciplinary action taken by either MGASC will be communicated to the other MGASC, under intimation to Integrated Headquarters of MoD (Army) (ST-5). (g) In case a Contractor is removed from the list of approved Contractors of the parent Command, the registration papers of such Contractor will be forwarded to the MGASC to whom the contract carrying capacity has been transferred. If the Contractor is still borne on the list of two MGsASC, the papers will be  9 forwarded to the MGASC in whose Command the Contractor has more capacity. However, if a Contractor has been removed from the list of approved ASC Contractors on any grounds, the contract carrying capacity of the Command from which he was removed will not be available in the transferred Command(s). Also, he will not be allowed to apply for enhancement of his contract carrying capacity in the other Command(s) till his normal re-verification is due. (h) Each time the contract carrying capacity is transferred from one Command to the other, Integrated Headquarters of MoD (Army) will be kept informed. However, if the request of the Contractor for transferring capacity and for items requested for is turned down by one of the MGsASC, the entire case giving detailed reasons for such a decision will be communicated to DGST, Integrated Headquarters of MoD (Army) for his directions.  10 SECTION C RE-VERIFICATION 17. Review and re-verification of Contractors will be done as per the policy given below: - (a) The approved list of Contractors will be reviewed by the officer maintaining the same at least once a year. (b) Re-verification of registered Contractors will be carried out every five years. The Contractor, wishing to continue doing business with ASC, will have to apply for re-verification at least six months prior to the expiry of his registration. However, in case anything adverse is brought to the notice of authorities at any time by an official source, immediate action will be taken on these reports and re-verification of such Contractor(s) would be carried out based on these reports. (c) Re-verification will be necessary each time a Contractor applies for re-categorization/enhancement of contract carrying capacity in the same category, which he will be permitted to do, not more than once in two years. (d) The process of re-verification will not be completed till such time all formalities required for initial registration have been complied with and fresh registration letter issued to the Contractor by the MGASC. No tenders for regular contracts and short-term agreements commencing after the date of validity of initial registration of the Contractor will be issued to the Contractor till the re-verification is completed. He will, however, be permitted to participate in tendering activity as unregistered Contractor for Local Purchase only. (e) In case any registered ASC Contractor does not apply for re- verification, or does not intend to continue business with ASC at any time in any Command, he may apply to the concerned MGASC to get himself de-registered. The concerned MGASC will de-register the Contractor only after all dues in favour of Government have been recovered from the Contractor and there is nothing outstanding against him. In case any registered ASC Contractor does not apply for re-verification and his registration expires, he  11 will be removed from the approved list of ASC Contractors by the concerned MG ASC. However, the liability of the Contractor towards any dues to the Government, and to continue operation of any on-going contract(s) will remain, till completion of the said contract(s).  12 CHAPTER III REMOVAL, SUSPENSION AND BANNING OF CONTRACTORS SECTION A PERFORMANCE OF CONTRACTORS 18. A proper record of the performance of each Contractor, based on the criteria laid down vide Integrated Headquarters of MoD (Army) letter No 63148/Q/ST-5 dated 17 Dec 2003, will be maintained by Executive Officer. Following factors will be borne in mind while assessing the performance of Contractors: - (a) Number of times, a Contractor has failed to meet his contractual obligations or violated any terms and conditions of the contract. (b) Failure to employ adequate technically trained staff and infrastructure for smooth running of the contract. (c) In case a contractor fails to supply more than 30% of the contracted monthly requirement for the month, or has more than 05 failures in a month, or has more than 15 failures aggregate, his contract will be recommended for recession by the Contract Operating Officer/Executive Officer. For the purpose of this provision, a ‘failure’ will be deemed to have occurred if the Contractor fails to supply at least 90 percent of quantity of the demand of item placed on him for that day. The final decision for rescinding the contract will however rest with the Competent Financial Authority, who, before taking the final decision, should take into account the reasons for failure on part of the Contractor and existence of any conditions beyond the control of the Contractor, e.g. strike/natural calamity, etc.  13 SECTION B REMOVAL FROM THE APPROVED LIST OF ASC CONTRACTORS 19. (a) MGASC Command, who is competent authority to include the name of a firm in the list of approved Contractors maintained by him will also be competent to order the removal of a firm from the list of approved Contractors. If any Contractor is to be removed from the approved list for a particular reason, ADST Sub Area/CO ASC Bn or DDST Area/Corps concerned will forward their recommendations alongwith detailed reasons to MGASC Command, who will decide whether the Contractor should be removed from the list or not. In either case, detailed reasons for his decision will be recorded by the MGASC and will be communicated to the Contractor and Integrated Headquarters of MoD (Army) (ST- 5). (b) In case of removal, the Contractor has the right to appeal against the decision of MGASC to the DGST. In case of such appeal, DGST may review the case for removal of the Contractor afresh and pass any orders as deemed necessary by him. (c) A firm, after due investigation wherever necessary, may be removed by the competent authority from the list of approved ASC Contractors on any of the following grounds:- (i) On account of its poor performance based on the performance reports forwarded by the Contract Operating Officer/Executive Officer or other disabilities. (ii) If the firm, by any unreasonable and baseless acts of commission or omission, impedes, retards, delays or vitiates in any manner, the process of concluding a contract or operation of a contract. (iii) Does not participate in any tendering activity for two consecutive years. (iv) Fails to secure a contract during a period of three consecutive years. (v) Obtains tender forms for a contract but does not participate in the tender.  14 (vi) In four consecutive invitations to tenders, quotes obviously fictitious rates, which are twenty percent or more below the reasonable rates fixed by the Panel of Officers. (vii) Fails to execute a contract or a short-term agreement secured by him. (viii) No longer has the technical staff or equipment considered necessary for execution of the contracts secured by him. (ix) Violates any terms and conditions of the contract deed or is found to have made false declarations in his registration documents. (x) Is declared bankrupt or insolvent or his financial position becomes unsound, and in case of a limited company, it is wound up or taken into liquidation. 20. Order regarding removal of a Contractor from the approved list will be endorsed to Integrated Headquarters of MoD (Army) (QMG’s Branch/ST-5), all Commands, and other relevant Corps/Area/Division/Sub Area or other Government departments. 21. Procedure for Removal of a Contractor. Before a decision is taken to remove the name of a firm from the list of approved Contractors for any one of the reasons contained in Para 19 (c) above, a ‘show-cause’ notice will be served asking him/her/them to explain as to why the proposed action should not be taken. On receipt of a reply to the show cause notice, the case will be examined and a decision taken by the competent authority. Orders removing firm from the list of approved Contractors will be communicated to the firm together with reasons thereof, under intimation to all concerned. It will, however, be made clear in the order that it is open to the firm/Contractor henceforth to tender as an unregistered firm/Contractor for local purchase only. 22. Implication of Removal. (a) Removal does not carry much of a stigma with it and is for minor offences as given in Para 19 (c). Removal of firm/ Contractor from one list of approved Contractors of a Command  15 does not necessarily mean that he/she/they should be removed from the list of other Commands, where he/she/they may be rendering useful services. (b) A firm with whom business dealings have been suspended or banned shall be automatically removed from the list of approved Contractors. The fact of such removal will be communicated to the firm along with the reasons. 23. Re-instatement of ‘Removed’ Contractors. Once removed, the name of a firm/Contractor may not be restored on the approved list unless it/he satisfies the normal registration requirement and the Competent Authority is satisfied that the firm/Contractor should be registered. In no case, however, the reinstatement shall be effected within two years from the date of firm’s/Contractor’s removal from the approved list. Further material changes in circumstances leading to re- instatement will invariably be intimated to the DGST. SECTION C BANNING AND SUSPENSION Banning of Contractors 24. Banning of business dealings with a firm/Contractor shall be of two types: - (a) Banning by one Ministry including its attached and subordinate offices. (b) Banning by all Ministries including their attached and subordinate offices. 25. The grounds on which banning may be ordered are: - (a) If security considerations including the question of loyalty to the State, so warrant. (b) If the proprietor of the firm, its employee, partner or representative is convicted by a Court following prosecution by the Central Bureau of Investigation (CBI) or any other investigating  16 agency or under normal process of law for offences involving moral turpitude in relation to business dealings. (c) If there is a strong justification for believing that the proprietor or employee or representative or a partner of the firm has been guilty of malpractices, such as bribery, corruption, fraud, substitution of tenders, interpolation, misrepresentation, evasion or habitual default in payment of any tax levied by law or any other act of dishonesty aimed at causing a wrongful loss to the State. (d) If the firm continuously refuses to return Government dues without showing adequate cause and Government is satisfied that this is not due to a reasonable dispute, which would attract proceedings in arbitration or court of law. (e) If the firm employs a Government servant, dismissed or removed on account of corruption or employs a non official convicted for an offence involving corruption or abetment of such an offence, in a position where he could corrupt Government servants. 26. Banning only by Ministry of Defence. (a) An order for banning business dealings with an ASC Contractor shall be passed by Ministry of Defence. It will, however, be open to Ministry of Defence to consult the Department of Food, Ministry of Consumer Affairs, Food and Public Distribution, if necessary. (b) Such an order may be passed in cases where the offences are not considered serious enough to merit banning by all Ministries including their attached and subordinate offices, but at the same time an order merely removing the name of the firm from the list of approved Contractors is not considered adequate. (c) It shall be passed for a specific period. (d) It shall be extended to the allied firms also. (e) It shall not be circulated to other Ministries/ Departments but shall cover all the attached/subordinate offices of Ministry of  17 Defence. A copy of the order, however, will be sent to the Department of Food, Ministry of Consumer Affairs, Food and Public Distribution. (f) No contract of any kind whatsoever shall be concluded with a banned firm including its allied firms after issue of the banning order. Contracts concluded before the issue of the banning order shall, however, not be affected by the banning order. (g) An order for banning on account of doubtful integrity, loyalty or security consideration will be issued only after consultation with Ministry of Home Affairs. 27. Banning by all Ministries. (a) Banning of a firm by all Ministries including their attached and subordinate offices and the revocation thereof shall be ordered by the Department of Food, Ministry of Consumer Affairs, Food and Public Distribution. (b) A banning order passed in respect of a firm shall be extended to all its allied firms. (c) Such an order shall be endorsed to and automatically implemented by all Ministries/Department including their attached and subordinate offices. 28. A banning order shall specify: - (a) The specific period (permanent, if required) for which it will be effective; and (b) The name of Sole Proprietor, all the partners, Directors etc of the proprietorship firm, company and its allied concerns. Procedure for Banning 29. Reporting of Potential Banning Cases. The Corps/Area/Division/Sub Area Commander, after satisfying himself that a firm/Contractor should be banned, will submit his recommendations along with detailed reasons to Headquarters Commands. If Headquarters Commands agree with the  18 recommendation of the Formation Commander, they will submit a report to Integrated Headquarters of MoD (Army) (QMG Branch/ST-5), which will, inter-alia, contain information on the following points: - (a) Reasons due to which banning is recommended. (b) Period (whether indefinite or specific) for which banning is recommended. (c) Names of Sole Proprietor, all the partners, directors etc of the Contractor/proprietorship company/firm and its allied concerns to whom such orders would also apply. (d) All firms/companies, which come within the sphere of effective influence of the banned/suspended firms/ proprietorship/companies, shall be treated as allied firms. In determining this, the following factors may be taken into consideration: - (i) Whether the management is common. (ii) Majority interest in the Management is held by the partners or directors of banned/suspended firms/ companies. (iii) Substantial or majority shares are owned by the banned/suspended firms, their directors/shareholders and by virtue of this it has a controlling voice. 30. The Ministry of Defence being the ultimate authority to decide as to whether banning proceedings are to be launched against a firm/Contractor, all cases which can be construed to attract banning in terms of Para 25 of this letter, including those wherein Integrated Headquarters of MoD (Army) or authorities subordinate to it do not recommend banning, shall be referred to Ministry of Defence for decision. 31. Ministry of Defence will appoint an officer/officers to conduct proceedings to ban business dealings with the firm. The officer/officers will be competent to consider the proposals and in appropriate case issue notice to show cause to the firm as to why business dealing of the Government should not be banned/suspended with the firm and  19 consider the replies of the firm to the show cause notice. In conducting these proceedings the nominated officer(s) will act in a quasi-judicial capacity and will work independently. The orders for banning will be passed by the Ministry of Defence as stated in Para 26 above on the recommendation of the officer(s) conducting the proceedings. In the order of suspension or banning business dealing with the firms, reasons for banning/suspension will be intimated. A form in which such an order will be passed is placed at Appendix C. 32. Implications of Banning. (a) An order for banning implies that all departments of the Government of India as specified in the banning letter are forbidden from dealing with the Contractor. Headquarters Commands will be informed by Integrated Headquarters of MoD (Army) (AG/Coord) of the name of banned firms/ Contractor(s), through a secret communication. (b) The fact of banning and reasons thereof shall be communicated to the Contractor. (c) The issue of banning orders shall normally involve immediate cessation of all future business with the Contractor(s)/firm(s) by all units/formations. (d) Particular care will be taken by MGsASC/DDsST/COs ASC Bn/ADsST to ensure that the banned firm/Contractor is not registered as an approved Contractor under a different name to transact business with the Government. (e) Even in case of risk purchases, no contract/short term agreement/order/demand shall be placed with a banned firm. Suspension of Business with Contractor(s) 33. Suspension of business may be ordered where, pending full inquiry into the allegations, it is not considered desirable by the competent authority that business with the firm(s)/Contractor(s) should continue. Such an order may be passed: - (a) If the firm/Contractor is suspected to be of doubtful integrity and loyalty to INDIA.  20 (b) If the Central Bureau of Investigation or any other investigating agency recommends such a course in respect of case under investigation; and (c) If the competent authority is prima facie of the view that the firm/Contractor is guilty of an offence involving moral turpitude, in relation to business dealings which, if established, would result in business dealing with it/him being banned. 34. (a) An order of suspension on account of doubtful integrity and loyalty shall be passed by the Department of Food, Ministry of Consumer Affairs, Food and Public Distribution, in consultation with Ministry of Home Affairs and will be communicated to Headquarters Commands by Integrated Headquarters of MoD (Army) AG’s Branch (AG Coord). Such an order will be extended to the allied firms. (b) An order for suspension for other reasons shall be passed by QMG Integrated Headquarters of MoD (Army)/ GOsC –in –C Commands / GOsC Corps /Area / Division/ Communication Zone Area and Commanders Sub Area / Brigade/ Communication Zone Sub Area / Indep Brigade Group / Indep Communication Zone Sub Area. This order will also be extended to the allied firms. 35. Revocation of Orders of Banning/Suspension. (a) An order for banning/suspension passed for a certain specific period shall be deemed to have been automatically revoked on the expiry of that specified period and it will not be necessary to issue specific information of revocation, except that an order of suspension/banning passed on account of doubtful integrity, loyalty or security consideration shall continue to remain in force until it is specifically revoked. (b) An order of banning for the reasons mentioned at Para 25 (b) above may be revoked if in respect of the same facts, the accused has been wholly exonerated by Court of Law and the appeal has been filed in this regard.  21 (c) A banning/suspension order may, on review, be revoked by the Competent Authority if it is of the opinion that the disability already suffered is adequate, in the circumstances of the case. Maintenance of List of Banned Firms 36. (a) Department of Food, Ministry of Consumer Affairs, Food and Public Distribution will keep an up-to-date list of firms against whom orders of banning by all Ministries including their attached and subordinate offices have been issued, and circulate every quarter, a list of additions and deletions during the previous quarter to all other Ministries. Such lists will be communicated to Headquarters Commands by Integrated Headquarters of MoD (Army) AG’s Branch (AG/Coord). (b) All MGsASC/DDsST/COs ASC Bn/ADsST will maintain an up- to-date list of ASC Contractors who have been banned and suspended, and no business dealings are to be entrusted to them.  22 CHAPTER IV ACTION BEFORE RECEIPT OF TENDER SECTION A ADVERTISEMENT AND WORKING OUT APPROXIMATE REQUIREMENT 37. (a) Advertisement will be issued by MGsASC Commands in respect of each contract whose value exceeds Rs 20 lakhs in two National Newspapers and in two regional Newspapers. (b) The advertisement will be published four weeks in advance before the date of initial tendering by MGsASC Commands through Director of Advertisement and Visual Publicity, Ministry of Information and Broadcasting (DAVP). For subsequent re-tender, the advertisement will be published two weeks in advance in one regional and one National Newspaper only, under the arrangement of respective Executive Officer and need not be routed through DAVP. (c) The expenditure incurred by Commands on these advertisement will be met out of the budget head 800B (a) 3(a). (d) Advertisement will be published as per format given at Appendix D. Working of Approximate Requirements 38. The approximate requirements may be worked out on the following basis: - (a) Present actual feeding strength x scale x period = ‘A’ quantity. (b) Average quantity actually drawn during the last three years = ‘B’ quantity. (c) Quantity required based on the anticipated increase/ decrease in the strength during the currency of the contract  23 (strength x scale x period) less quantity to be obtained from soldier’s garden produce and unit Dairies = ‘C’ quantity. (d) Average of quantities ‘A’, ‘B’ and ‘C’ will give the Approximate Requirement. (e) Due allowance will also be made for any other factors which may affect future consumption such as permanent or temporary increase or decrease in the garrison, alteration in ration scales, turnover of tinned items in Supply Depots and so on. (f) Anticipated increase/decrease in the strength would be obtained from the Staff by the Executive Officers at all levels. 39. Estimated Value of the Proposed Contracts. This will be worked out on the basis of approximate requirement of the item(s) at the current contract rates. This would enable the Executive Officers to determine CFAs for sanctioning respective contracts. (a) The approximate qtys of all contracts of perishable items will be put up to the concerned IFA to the CFA for vetting prior to commencement of the tendering process. In case the IFA/CFA is not co-located the qty vetting will be got done through the IFA at Command HQ. In case of any change in qtys subsequent to vetting by IFA and prior to sanction of contract, due to operational reasons like movement of troops, accretion of forces etc, the amended qty will be got vetted by the IFA to the CFA quoting the relevant reasons for the same. This, however, will not be applicable in such cases where the qtys have been reduced to the subsequent reduction in the contract period and not due to any change in strength. Average Local Market Rates 40. Station Commander will convene a monthly Station Board of Officers, with presiding officer other than an ASC officer. The Station Board will obtain the local market rates of those items for which ASC contracts are concluded by visiting the market in person. The Station Commander will countersign these board proceedings, and one copy each of these proceedings will be forwarded to the concerned CDA/IFA and the Executive Officer. These rates will be taken into consideration by the Panel of Officers for formulation of Reasonable Rates.  24 Call for Tender 41. No individual call notices inviting Contractors to quote rates for different items/station will be sent to them except in case of contracts whose value is Rs 20 Lakhs and below. In addition to the advertisement published in newspapers in accordance with Para 37 above, a notice giving details of various contracts to be concluded by various Executive Officers will be displayed prominently on the notice boards, outside their respective offices. In addition, similar notices will also be displayed at the notice boards of all Supply Depots within that Command. This notice will be pasted on the day when advertisement has been sent for publication in the newspaper(s). 42. MGsASC Command will draw a comprehensive plan, based on the broad dates given by Integrated Headquarters of MoD (Army) (ST-5), well in advance for opening of tenders at different Formation Headquarters and intimate the same to all concerned, including Integrated Headquarters of MoD (Army) (ST-5). This will enable the concerned CDA/IFA to plan and co-ordinate the move of their officers to different locations. It will also enable the Contractors to participate in tendering activity at different locations. SECTION B ISSUE OF TENDERS 43. A mandatory four weeks notice between the date of issue of call notice and opening of tenders will be given. In case of re-tender, this period may, however, be reduced to two weeks. 44. (a) An approved Contractor may be issued with tenders as desired, the total value of which does not exceed his contract carrying capacity, as laid down vide Para 15 above. (b) No Contractor should be granted contracts in excess of his contract carrying capacity. In case, however, the CFA is of the view that exceeding contract carrying capacity is in public interest, Contractor may be allowed to exceed upto 25% of their contract carrying capacity by respective CFAs. (c) If an approved Contractor applies for tender of higher value contracts, he may be issued tenders after obtaining approval of the  25 concerned CFA. Tender of such Contractors should normally be considered only if enhancement of the contract carrying capacity is approved by the MGASC concerned by the time tenders are opened, but in case his tendered rate(s) is/are the lowest, the tender may be accepted/rejected after obtaining the approval of concerned CFA. If the CFA is satisfied that such a course is in the public interest, he may sanction contract in his/her/their favour even though the value of the contract is in excess of his/her/their contract carrying capacity. (d) In case where a Contractor is already operating a contract, his balance contract carrying capacity available for new contracts would be his total capacity less the value of contract(s) which will remain operative on the date of commencement of new contracts. Tender Fee 45. A uniform tender fee of Rs 100/- (Rupees one hundred only), to be collected in form of postal order/treasury receipts, will be levied for each set of tender documents for regular contracts and short term agreements. The postal order/treasury receipt number and date shall be quoted on the first page of the tender form, prior to issue of tender form to any Contractor. Postal Order and Treasury Receipt will be drawn in favour of the concerned Regional CDA/Area Accounts Office. Details of tender fee received and forwarded to CDA will be maintained by the Executive Officers in a register showing the following details: - (a) Details of tender including articles and period covered by it. (b) To whom issued. (c) Number and date of communication under which tender was issued, if applicable. (d) Number, date and amount of Postal Order/Treasury Receipt furnished by the Contractor together with the treasury at which lodged. (e) Number and date of communication under which treasury receipt was forwarded to the CDA concerned. (f) Number and date of CDA’s acknowledgment.  26 46. Tender fee will not be charged from Government Departments like Farms, Forests, and Jails, etc. Similarly, when tenders received are unsatisfactory due to any errors on the part of Government and re- tendering has to be resorted to, no fee will be charged from those Contractors who submitted tender in the first instance. In case of short term agreements, when time is at premium, the tender fee may be collected in cash on the spot and deposited into the treasury and receipt forwarded to CDA concerned. Cash will not be handled by anybody other than an officer. 47. A Contractor/firm will be issued with only one set of tender forms for one item/group of items. SECTION C EARNEST MONEY 48. Each tender must be accompanied by requisite amount of earnest money. Details of earnest money to be lodged by the tenderers will be recorded on the top of the first page of IAFZ-2120. The amount of earnest money will be worked out at one percent of total value of the contract at current contract rates and it should be rounded off to nearest hundred. 49. Earnest money may be deposited in any of the following forms: - (a) By remitting cash in Government treasury. (b) Demand drafts from Scheduled Banks. (c) Deposit At Call Receipt of Scheduled Banks (including the State Bank of India and its subsidiaries approved under the Bank Guarantee Scheme). (d) Fixed deposit receipt, in original.  27 50. Tenders unaccompanied by Earnest Money or accompanied by insufficient earnest money will be entered in the Comparative Statement of Tenders (CST) separately by Board of Officers opening the tenders. The decision to reject or to accept such tenders will be taken by the panel of officers consisting of the representatives of ASC, CDA concerned and CFA keeping in view the interest of the State. Detailed reasons will be recorded in the panel proceedings for accepting/rejecting such tenders. However, such tenders should not be accepted as a matter of routine. While rejecting such tenders, the earnest money will be returned immediately. 51. The earnest money of all tenderers will be retained till finalization of deliberations by the Panel of Officers (including invitation offer, if any). Thereafter, earnest money of only three lowest tenderers will be retained till sanctioning of the contract. However, if the earnest money of any of the three lowest tenderers is released inadvertently, the same amount can be recovered from the payments due to such Contractors against any other contracts being operated by them. Earnest money in respect of the remaining tenderers, including those who have not participated in the tendering process, will be refunded immediately thereafter. 52. In case retender is ordered, earnest money deposited earlier pertaining to the item(s)/ station(s), will be refunded immediately, when retender is ordered. 53. Earnest money of a successful tenderer will be refunded as soon as the security deposit has been furnished unless it is used as a part of security deposit. 54. As regards imposition of penalties on ASC Contractors on default on the subject of forfeiture of earnest money, refer to Rule 243 of Financial Regulations Part I, and Appendix E.  28 CHAPTER V ACTION AFTER RECEIPT OF TENDER SECTION A RECEIPT AND PROCESSING OF TENDERS 55. Tender will not be received by hand. All tenders will be deposited by the tenderers in a locked and sealed box whose keys will be under the safe custody of the Executive Officer. No tender will be received after the hour and date published in the newspaper and as stated in IAFZ-2137A. The Executive Officer will be responsible to ensure that all tenders received by post are placed in the box, before the expiry of the said time and date. 56. Opening of Tenders. A Board of Officers, detailed by the Formation/Station Headquarters, consisting of a representative from staff, a representative of Executive Officer concerned and one more officer/JCO detailed by Formation Headquarters, will open the tenders on the date and time fixed for the same. The Board of Officers will meet the Executive Officer for briefing one day prior to the date for opening of tenders. Thereafter, the Board of Officers will assemble on the specified date and time, and open the sealed tender boxes in the presence of tenderers. The detailed instructions for the procedure to be followed by the Board of Officers are given at Appendix ‘F’ attached. This Board of Officers is independent of the Panel of Officers and will be responsible to the competent financial authority for their actions. The Panel of Officers will not be held accountable for any default on part of the Board of Officers. Level of Processing 57. Tenders will be opened and processed as under: - (a) QMG Contracts - MGASC Command. (b) GOC-in-C Contracts - MGASC Command. (c) GOC Corps Contracts - DDST Corps. (d) GOC Division Contracts - CO ASC Bn.  29 (e) Area Commander Contracts - DDST Area. (f) Sub Area Commander Contracts -ADST Sub Area. Comparative Statement of Tenders 58. Following information, to the extent possible, will be shown on the comparative statement of tenders: - (a) Details of services/supplies tendered for. (b) Approximate requirement stated in the schedule. (c) Contract rates for the item during last three corresponding years. (d) Anticipated value of contract at the current contract rates to be entered in the column periodic vocabulary rates in the CST. (e) Rates quoted by different tenderers, serial wise. (f) Estimated cost. 59. Each CST will be a complete document in itself. All decisions regarding invitation offers and orders passed for re-tendering by various authorities will be recorded in writing on the CST so that complete flow pattern of the conclusion of the contracts can be studied. Detailed recommendations in respect of each case duly signed by members of the Panel of Officers and intermediary CFA will be pasted in the CST at relevant places and pages serially numbered. Composition of Panel of Officers 60. The tenders pertaining to ASC contracts, after having been opened by the Station Board of Officers as prescribed above, will be examined by the Panel of Officers at Headquarters Command/Corps/Division/ Area/ Sub Area. As far as possible the composition of the Panel of Officers will not be changed till such time the contracts for a season are concluded, except for exceptional circumstances and with explicit approval of the CFA. Under no circumstances, the CFA rep should be from ASC. The composition of the Panel of Officers will be as under: -  30 (a) Executive officer as specified, for different contract sanctioning authorities and as indicated in Article 299 of the Constitution of India. (b) Representatives of Formation Commanders at appropriate level, including representatives of Air Force/ Navy, where required. (c) Representatives of respective CDA/IFA. 61. Following guidelines are laid down for the rank structure of the panel of officers: - (a) Contracts to be processed at Command Headquarters. (i) Executive Officer - MGASC (ii) Rep of Formation - An officer not below Commander the rank of Brig (and equivalent rank in Air Force/Navy) (iii) Rep of the CDA/IFA - An officer not below the rank of Dy IFA (b) Contracts to be processed at Corps Headquarters. (i) Executive Officer - Brig ASC (ii) Rep of Formation - An officer not below Commander the rank of Col (and equivalent rank in Air Force/Navy) (iii) Rep of CDA/IFA - An officer not below the rank of Dy IFA (c) Contracts to be Processed at Area/Division Headquarters. (i) Executive Officer - Brig ASC/ CO ASC Bn. (ii) Rep of Formation - An officer not below Commander the rank of Col (and equivalent rank in Air Force/Navy) (iii) Rep of CDA/IFA - An officer not below the rank of Dy IFA/DCDA/ACDA.  31 (d) Contracts to be Processed at Sub Area Headquarters. (i) Executive Officer - ADST/DADST. (ii) Rep of Formation - An officer not below Commander the rank of Lt Col (and equivalent rank in Air Force/Navy) (iii) Rep of CDA/IFA - An officer not below the rank of DCDA/ACDA. Action by Panel of Officers 62. The Panel of Officers mentioned above will be responsible to examine the tendered rates in hand in relation to the Reasonable Rates which would have been decided earlier on by them as given in Para 63, 64 and 65 below. Firm, date and time for meeting of the Panel of Officers will also be communicated by the Executive Officer to the concerned CDA/IFA well in advance to enable them to participate in the deliberations. The detailed instructions for procedure to be followed by the Panel of Officers are given at Appendix G. SECTION B RATE PATTERN FOR CONTRACTS AND DETERMINATION OF REASONABLE RATES 63. The inputs that will be used for determining the Reasonable Rates (RR) are listed at Appendix H. Some guiding principles to be kept in mind while formulating RR are as under:- (a) Need to strike a balance between securing contracts at Reasonable Rates, and settling for rates that are so low that they impinge adversely on the quality of rations supplied. (b) Need to conclude contracts in time, as the non-conclusion of contracts will result in retendering and subsequent local purchase, which apart from being detrimental to the interest of the  32 Government, may also set an unhealthy trend of higher rates for future contracts. (c) Need to bring parity in rates at stations where similar conditions prevail, and remove inter-service disparities in rates of various items. (d) Need to give priority to preference of troops within the constraints of laid down regulations. (e) A drastic drop in rates on account of unhealthy competition during past three years, resulting in unrealistic current/expired contract rates. 64. The extent of weightage given to the relevant factors listed in Appendix ‘H’ attached should be compiled carefully, based on the authenticated and reliable data/information. Towards the end, it should be matched with the prevalent local market rates in that station, after building in a realistic depression factor for the bulk supply. 65. Based on the above deliberations, the Panel of Officers, whose composition is given at para 60 above, will arrive at ‘Reasonable Rates’ (RR) for each item and station. The RR will be in terms of the actual cost in case of meat group items and in terms of percentage increase/decrease over current contract rates in case of all other items. However, even for combined item contracts, the Panel could endeavour to arrive at a minimum acceptable rate for each individual item. 66. The information about formulation of reasonable rates will be kept as a closely guarded secret and under no circumstances will be divulged to persons other than Panel of Officers. To maintain sanctity of the rates, the Panel of Officers will work out reasonable rates on the same date and time when the tenders for those item/stations are being opened. In case there is a difference of opinion among the panel members regarding fixation of reasonable rates, a dissent note by the dissenting member will be attached to the Panel Proceedings. The final decision will then be left to CFA. RR shall not be fixed for those items/stations for which there is no response from the tenderers ie tenders have not been purchased by any tenderer for those items/stations. In case tender is/are purchase, RR will invariably be fixed.  33 67. The reasonable rates once determined will be put down in writing, signed by the Panel of Officers and will be kept in a sealed cover along with their worksheets. In case there is a difference of opinion among the Panel members regarding fixation of reasonable rates, both the rates will be sealed along with their worksheets and the dissent notes of the Panel members. NO change will be made to those rates thereafter. Those rates will then be attached to the comparative statement of tenders for perusal by the sanctioning authorities. However, to maintain confidentiality of the reasonable rates, no mention of the same or its relationship with the tendered rates will be made explicitly in any document, and only words to the effect ‘marginally/excessively above/below reasonable rates’ will be endorsed in the comparative statement of tenders /panel proceedings. Normally reasonable rates once fixed will not be revised. However, if it is felt that circumstances warrant revision of reasonable rates due of unavoidable reasons, detailed justification for the same will be given in the panel proceedings. SECTION-C RECOMMENDATION FOR SANCTION/RE-TENDER 68. If the lowest tendered rates (LTR) at the time of opening of tenders are found to be at par or below the Reasonable Rates determined by the Panel of Officers, the tender will be recommended for sanction in favour of the lowest tenderer. 69. If LTR is higher than RR, the panel should record its recommendations regarding the reasonableness of the price offered by the lowest bidder and the need for negotiation or re-tender with detailed justification. Based on recommendations of the panel, negotiation may be undertaken. In case L1 reduces the price to the desired level, contract may be placed on it but if it does not agree then, retendering etc may be decided depending on the merit of the case. In cases where decision is taken to go for re-tendering, but the requirements are urgent, negotiation may be undertaken with lowest tenderer for the supply of bare minimum quantity in accordance with para (ii) of CVC instructions issued vide their circular No 4/3/07 forwarded under their letter No 005/CRD/12 dated 03 Mar 07, placed at Appendix ‘N’. 70. In case rates quoted are lower than 20% of reasonable rates, the same will be treated as fictitious and rejected by Panel of Officers. No relaxation must be given even if the rates are 20.01% below reasonable  34 rates. Action should be taken against tenderers, as per the prescribed procedure. However the decision to reject such tenders may be taken by the Panel only after discussion with tenderer and reasons for rejection should be recorded in panel proceedings. The provisions of this para will not be applicable to Ice (MM) and wheat grinding contracts. 71. In case identical lowest rates are obtained from more than one tenderer either at the time of opening of tenders or after the invitation offer, another invitation offer will be made to both the tenderers who had quoted identical rates. This process will be carried out in the room where the panel is assembled and under no circumstances the tenderers will be allowed to leave the room. The revised rates quoted by both the tenderers will be announced in their presence. Thereafter, tenders may be recommended in favour of the tenderer who quotes the lowest rates. 72. In case where the recommendations of the Panel of Officers are not unanimous, contracts may be sanctioned in terms of Para 240 of the Financial Regulations Part I by the appropriate CFA. Retender 73. Retendering will be ordered by the respective CFA in cases where the Panel of Officers is unanimous in their recommendations for retendering and the CFA agrees with the recommendations of the Panel of Officers. Also, in case the recommendations of the Panel of Officers are not unanimous, the CFA will take final decision regarding the contract in accordance with Para 240 of Financial Regulations Part I. However, in case of a difference of opinion between the recommendations of the Panel of Officers and the CFA, the decision will be taken by the next higher CFA. In such cases, the CFA will clearly endorse his reasons for not agreeing with the recommendations of the panel, and the final decision will be taken by the next higher CFA. 74. In case the panel of officers considers that though more than three tenders have been received and yet, genuine competition has not been achieved, the panel of officers may recommend for retendering, recording clearly the reasons for their recommendations. The panel of officers should look into this aspect and make a reasoned recommendation on genuine competition.  35 (a) After the approval by the panel of offrs for acceptance of the contract or re-tendering as the case may be, the proceedings in such cases where the contracts fall under the delegated financial powers with consultation of IFA, will be submitted to the IFA to the CFA who is empowered to sanction the contract for prior concurrence before obtaining the sanction of the CFA. Financial Powers for Conclusion of Contracts 75. The financial powers for sanctioning of fresh supplies contracts would be as per existing Govt orders on the subject as amended from time to time. Conclusion of Contracts with State/Central Government Sponsored Bodies and Cooperative Societies 76. Negotiated contracts with State level PSUs/ Cooperative Societies, in which State Govt have some equity, may be concluded with prior approval of the Govt. NO price preference will be afforded to Central Government/State Government Undertakings, unless otherwise clearly notified by the Bureau of Public Enterprises after satisfying themselves that the Central/State Government undertakings are partly or wholly financed by the Central/State Govt. Local military authorities will also satisfy themselves about the genuineness of Cooperative Societies primarily being of growers and breeders before allowing any facility or preferences to them and also check the availability of adequate infrastructure for operation of the contracts. A careful watch must be kept for Contractors forming such Societies to obtain for themselves undue benefits.  36 CHAPTER VI COMBINATION, EXTENSION, RECESSION AND TERMINATION OF CONTRACTS 77. Combining of Contracts. In order to ensure smooth running of contract and procure better quality of fresh supplies, combining of contracts may be done by contract concluding officers. It would be advisable to combine contracts of items of same species such as meat, MOH, fish, eggs and poultry or potatoes and onion, or firewood, charcoal and lime quick, or milk and butter. Contract concluding officers may decide this aspect keeping in mind economy, administration, ease of operation, strength of troops and estimated requirement for a particular station. MGASC Command will accord approval for combining of contracts based on the above facts. The principles that will form the guiding factors for combining of such contracts are listed at Appendix J. 78. Extension of Contracts. Contracts will not normally be extended beyond the period for which they have been sanctioned. However, in case where reasonable rates have not been achieved in the open tendering despite best efforts by contract concluding authorities, the existing contracts may be extended with the consent of the Contractor(s) at the same terms and conditions up to a maximum period of 3 months by the CFA who sanctioned the contract initially, and for a further period of three months by the next higher CFA, in consultation with CDA/IFA. Sanction for such extension must be obtained prior to the expiry date of the contract. 79. Recession and Termination of Contracts. The detailed provisions for recession and termination of contracts are given at Appendix K. Periodicity ASC Contracts for Fresh Supplies 80. All contracts for fresh supplies will be concluded for duration of one year only. Commencement date of contracts will be as under: - (a) Contracts relating to Meat, Poultry, Eggs, Fish, Potatoes, Onion, Garlic, Firewood, Charcoal, Lime quick and Combined items will be finalized to commence from 01 Apr each year.  37 (b) Vegetables, Fruits, Milk, Bread and green grass/fodder will be finalized to commence from 01 Oct each year. In case of 14 and 15 Corps sectors and hill stations of all commands, the contracts should be finalized to commence from 01 Apr each year as was being done hitherto- fore. (c) Date of commencement of contracts relating to ice, mineral water and any other perishable ASC items will be at the discretion of concerned CFA. Suggested periodicity is Oct to Sep.  38 CHAPTER VII CONCLUSION 81. The above letter is issued notwithstanding relevant portions of the procedure laid down in Financial Regulation Part I, Regulation for the Army, ASC Regulations, ASC Training Volume II, Pamphlet ‘A Guide to ASC Contracts’ and all policy letters issued on the subject mentioned in this letter. 82. This supersedes Govt of India Min of Def letter No PC/RAKSHA/68063/Q/ST-5/5089/D(QS) dt 22 Nov 2000 as amended from time to time, and all other letters of clarification issued by Integrated Headquarters of MoD (Army) not specifically mentioned in paras above. 83. This letter is issued with concurrence of Integrated Finance Division vide their I.D. No 1121/QB/2006 dated 24 Jul 2006 and will be effective from 26 Sep 2006. Yours faithfully, (SP Sharma) Under Secretary to the Government of India Copy to:- The Controller General of Defence Accounts, New Delhi - 02 copies The Director of Audit Defence Services, New Delhi – 01 copy The Controller of Defence Accounts - Southern, Eastern, Western, Central, Northern, South Western Command – 01 copy each The DFA (Q) - 02 copies QMG’s Branch (Q/ST-5) - 150 copies Copy signed in ink forwarded to: - The Controllers of Defence Accounts - Southern, Eastern, Western, Central, Northern, South Western Commands.  39 Appendix A (Refers to para 04 of the Govt of India letter No PC/RAKSHA/ 63060/Q/ST- 5/3633/D(QS) dated 26 Sep 06) SPECIMEN ADVERTISEMENT FOR REGISTRATION AS APPROVED ASC CONTRACTORS 1. Applications are invited from interested suppliers for registration as ASC Contractors for annual contracts for supply of fresh articles like Mutton, Poultry, Eggs, Fish, Vegetable, Fruits, Potatoes and Onions at following stations:- (a) (b) (c) (d) 2. Annual value of contracts ranges from Rs. ____________ to Rs. _______________. Payment of bills is made on fortnightly basis and tenders are invited during JULY to SEPTEMBER and JANUARY to MARCH each year. 3. Interested parties may submit application on a plain paper to MGASC of the Command under which he wishes to take up contracts. Any additional information may be obtained from the undersigned. MGASC, _____________Command Mailing Address Telephone Numbers  40 Appendix B (Refers to para 05 of the Govt of India letter No PC/RAKSHA/63060/Q/ST-5/ 3633/D(QS) dt 26 Sep 06) PROCESS OF REGISTRATION OF ASC CONTRACTOR 1. Application by Interested Suppliers. Any person/firm may apply to any of the MGsASC Commands, on a plain paper expressing his willingness to be registered as ASC Contractor. Preliminary Process 2. On receipt of such plain paper application from interested parties, the MGsASC Commands concerned will take the following actions: - (a) Check the name of the Contractor(s)/firm with the list of removed/banned/suspended Contractors maintained by him. (b) In case, the applicant or any of the partners (if a firm) has been removed/banned/suspended to do business with any Government Department, he/she (or the firm) will not be considered for registration. This decision will also apply in those cases where any partner of the applicant firm may have been a partner of a firm, which has been removed/banned/suspended. In all such cases, a reply will be sent to the applicant as per Annexure 1 to this Appendix. (c) After having done the preliminary check as above and having found the applicant fit for further processing, MGASC will forward the application of the Contractor(s) to the concerned DDST of the Corps/Area in whose jurisdiction the Contractor(s) has expressed his desire to do business. The intimation of this will also be given to the applicant. (d) This process will be completed within 15 days of receipt of such application.  41 Action by DDST Area/Corps 3. On receipt of the application of the Contractor from the MGASC Command, the concerned DDST will take the following actions: - (a) DDST will write to the applicant to come and meet the DDST on a specified date/time. (b) On the specified date/time, the DDST will interview the applicant as regards his antecedents. (c) DDST will also brief the applicant regarding the following:- (i) Procedure for conclusion of contracts. (ii) Number, type and average value of contracts normally concluded under his jurisdiction. (iii) Penalties in case of non-performance/default by the contractor. (d) Thereafter, DDST will hand over a letter (IAFS – 1521X) as per Annexure 2 to this Appendix alongwith the application form for registration (IAFS-1521Y) as per Annexure 3 to this Appendix to the applicant. DDST will also explain the details to be provided by the applicant in the IAFS-1521Y. (e) The above process should be completed within 45 days of the receipt of the application from the Command. 4. On receipt of the completed application (IAFS-1521Y) from the applicant, the DDST concerned will take the following actions:- (a) Scrutinize the application in detail. In case of any inadequacies in the application, it will be returned to the applicant within 10 days of receipt, clearly specifying the anomalies/inadequacies therein. (b) On receipt of the complete and satisfactory applications, the DDST concerned will take following action within 15 days of receipt: -  42 (i) Make enquiries from the appropriate Civil and Police authorities on the form attached as per Annexure 4 (revised IAFS-2119) to this Appendix, as regards to the applicant’s character, financial status and reliability. (ii) Make enquires regarding financial status of the applicant from all the bankers shown in his application, as per the letter attached as Annexure 5 to this Appendix. (iii) Confirm genuiness of the PAN card details of the applicant from the concerned income tax authorities. (iv) Obtain Wealth Tax return from the applicants wherever applicable. All individual propriety firms as well as registered partnership firms will be asked to produce wealth tax return in respect of all their proprietors/partners at the time of initial registration as well as re-verification. (v) In the case of private limited/public limited companies, their latest audited final accounts alongwith annual reports will be called for and examined. (vi) Obtain declaration from the prospective Contractor as per specimen attached as Annexure 6 to this Appendix. This declaration will be in the form of an affidavit, duly registered with the Executive Magistrate/Notary, that when ever the Contractor(s)/ firm chooses to dispose off any of their assets as declared by them in the IAFS-1521Y, prior permission for the same will be sought from the registering authority. In case of a default on these grounds, the Contractor/firm is liable to be removed from the approved list of ASC Contractors. The registered number of the Executive Magistrate/Notary, and the diary number of the affidavit will invariably be quoted/stamped on the affidavit. (vii) All partners of the firm should sign the details of all immovable property. Also original documents of all immovable property declared in the IAFS-1521Y should be forwarded to the DDST alongwith a certified photocopy of the same. The MGASC will return the original documents to the applicant after completion of registration process.  43 (viii) DDST must confirm that the value of the immovable property shown in the latest application for registration/re- verification tallies with that mentioned in the affidavit. (ix) All above enquiries will be made under ‘CONFIDENTIAL’ cover and all correspondence on the subject will be treated strictly confidential. In no case will the source of information be disclosed to the applicant. (x) In case of Cooperative Societies/Unions, enquires regarding their financial status, assets and liabilities will be ascertained from the Registrar of Cooperative Society/Union, instead of civil authorities. The financial status will be ascertained from their audited balance sheet. 5. On receipt of the above details, DDST concerned will scrutinize all the details as given in the checklist attached as Annexure 7 to this Appendix, collate and forward the complete documents to MG ASC Command alongwith following recommendation: - (a) Whether the applicant is recommended for registration or not? (b) If not recommended, the reasons there to. (c) If recommended: - (i) The contract carrying capacity for which the applicant should be registered. (ii) The items for which the applicant should be registered. Action by MGASC 6. On receipt of the documents from the DDST, MG ASC will take following action: - (a) Scrutinize the details as submitted. (b) Seek any additional information himself, directly from the civil authorities/banker/applicant, if required.  44 (c) In case he finds the applicant not fit for registration due to any reason, intimate the same to the applicant clearly specifying his objections for registration as per Annexure 1 to this Appendix. (d) In case he finds the applicant fit for registration, he should call the applicant for interview on a specified date/time. During such interview, the following action be taken: - (i) The procedure regarding conclusion and operation of contracts be explained to the applicant. (ii) The applicant should be cautioned regarding the likely defaults in his future performance. (iii) The applicant should be handed over the registration certificate as per Annexure 8 to this Appendix. (iv) The date of re-verification should be reiterated to the applicant.  45 Annexure 1 to Appendix B (Refers to para 2(b) of Appendix B of the Govt of India letter No PC/RAKSHA/ 63060/Q/ST-5/3633/D(QS) dt 26 Sep 06) Headquarters_________ Command Station ________________ No _______________ Dated _________________ To, Shri/Messers_______________ ____________________________ ____________________________ REGISTRATION AS ASC CONTRACTORS Dear Sir(s), 1. Reference your application No _______________dated ________. 2. It is regretted that your request for registration as approved ASC Contractor cannot be acceded to due to following reasons: - (a) (b) Yours faithfully, (MGASC)  46 Annexure 2 to Appendix B (Refers to para 3(d) of Appendix B of the Govt of India letter No PC/RAKSHA/ 63060/Q/ST-5/3633/D(QS) dt 26 Sep 06) ________________________________________________________________ IAFS – 1521X Headquarters _________ Station________________ Ref__________ Dated_________________ To, Shri/Messers__________ _______________________ _______________________ REGISTRATION AS APPROVED ASC CONTRACTORS 1. This is in reference to your letter No ____________ dated ______ addressed to MGASC ___________ Command. 2. Please find enclosed one copy of application form for registration (IAFS –1521Y) along with this letter. You are requested to complete the form in duplicate and submit the same to this office along with supporting documents as required. You/your firm will be considered for registration as ASC Contractors only on receipt of the completed application. 3. Please note that, if the application form is not accompanied with the required supporting documents/certificates as mentioned, the question of your registration will not be pursued any further. It is also for your information that all documents must be submitted in original along with one certified true copy of the same. The original copies will be returned to you by the registering authority after due scrutiny. 4. The last page of the enclosed form (IAFS-1521Y) contains a statement showing the contracts usually made in the jurisdiction  47 of __________ Command. Please denote in last column of the statement the articles in which you deal in the ordinary course of your business and for which you would like to be considered for registration. 5. On receipt of your reply, the question of your registration will be considered and the decision communicated to you in due course. Yours faithfully, DDST Area/Corps  48 Annexure 3 to Appendix B (Refers to para 3(d) of Appendix B of the Govt of India letter No PC/RAKSHA/ 63060/Q/ST-5/3633/D(QS) dt 26 Sep 06) In lieu of IAFS – 1521Y APPLICATION FOR REGISTRATION OF CONTRACTORS FOR SUPPLY OF PERISHABLE ITEMS TO ARMY SERVICE CORPS Please Note: -  Please read the attached instructions before filling the form.  Incomplete Forms will not be processed.  This is a Machine Readable Form. Please fill using Black Ball Pen.  A list of documents required in support of the application is enclosed at the end of the form. Please ensure original/certified photocopies as applicable of all documents are submitted. Some of the original copies may be required at the time of interview for scrutiny, which will be returned to you by the registering authority. Some original documents will be held by the registering authority.  Individual firms are to enter their data in Part A-1, Partnership firms to fill Part A-2, Joint Venture Companies under Private or Public Sector to enter data in Part A-3 and in the case of State/Central Co-Operatives the data is to be filled in Part A-4. Similarly, Part-B is to be filled as applicable to the type of organizations.  In case of any changes subsequently in the information provided in the form, the same must be intimated to the registering authority immediately, failing which the applicant is liable to be removed from the approved list of ASC Contractors.  49 PART A-1: FOR INDIVIDUAL FIRMS Recent Passport Size Photograph 1. Name 2. Father/ Husband’s Name 3. Date of Birth D D M M Y Y Y Y 4. Residential Address: - City/Town State Pin 5. Office address: - City/Town State Pin 6. Telephone Numbers (Including STD Code): - Office Resi Mob Fax Other 7. E-Mail ID and Web Address: _______________________  50 8. PAN Card No : 9. Passport Details : Number _________________ Issued by _________________ Date of issue ______________ Valid upto ________________ 10. Details of family members:- Ser Relation Name Permanent Business Property No address Details Details with PIN code (a) Father (b) Mother (c) Spouse (d) Son/ daughter (e) Son/ daughter (f) Son/ daughter Date: (Signature of applicant)  51 PART A-2: FOR PARTNERSHIP FIRMS Recent Passport Size Photograph of Partner No 1 Partner No 1 11. Name of Partner 12. Father/ Husband’s Name 13. Date of Birth D D M M Y Y Y Y 14. Office address: - City/Town State Pin 15. Residential Address: - City/Town State Pin 16. Telephone Numbers (Including STD Code): - Office Resi Mob Fax Other 17. E-Mail ID and Web Address: _______________________  52 18. PAN Card No : 19. Passport Details : Number______________ Issued by _______________________ Date of issue ______________ Valid upto ____________ 20. Details of family members:- Ser Relation Name Permanent Business Property No address Details Details with PIN code (a) Father (b) Mother (c) Spouse (d) Son/ daughter (e) Son/ daughter (f) Son/ daughter Date : (Signature of Partner No 1)  53 Partner No 2 Recent Passport Size Photograph of Partner No 2 21. Name of Partner 22. Father/ Husband’s Name 23. Date of Birth D D M M Y Y Y Y 24. Office address: - City/Town State Pin 25. Residential Address: - City/Town State Pin 26. Telephone Numbers (Including STD Code): - Office Resi Mob Fax Other 27. E-Mail ID and Web Address: _______________________ 28. PAN Card No :  54 29. Passport Details : Number______________ Issued by _______________________ Date of issue ______________ Valid upto ____________ 30. Details of family members:- Ser Relation Name Permanent Business Property No address Details Details with PIN code (a) Father (b) Mother (c) Spouse (d) Son/ daughter (e) Son/ daughter (f) Son/ daughter Date : (Signature of Partner No 2)  55 Partner No 3 Recent Passport Size Photograph of Partner No 3 31. Name of Partner 32. Father/ Husband’s Name 33. Date of Birth D D M M Y Y Y Y 34. Office address: - City/Town State Pin 35. Residential Address: - City/Town State Pin 36. Telephone Numbers (Including STD Code): - Office Resi Mob Fax Other 37. E-Mail ID and Web Address : _______________________ 38. PAN Card No :  56 39. Passport Details : Number______________ Issued by _______________________ Date of issue ______________ Valid upto ____________ 40. Details of family members:- Ser Relation Name Permanent Business Property No address Details Details with PIN code (a) Father (b) Mother (c) Spouse (d) Son/ daughter (e) Son/ daughter (f) Son/ daughter Date : (Signature of Partner No 3)  57 PART B (1) DETAILS OF FIRM: FOR INDIVIDUAL/PARTNERSHIP FIRMS 41. Name of the Firm/Company: ______________________________ 42. Registered at : ___________________________________________ 43. Registering Authority : ____________________________________ 44. Statute under which Registered : __________________________ (Indian Companies Act/Indian Partnership Act) 45. Registration No : ________________________________________ 46. Office address of the Firm/Company: - City/Town State Pin 47. Telephone Numbers (Including STD Code): - Office Mob Fax Other 48. Sale Tax No ______________________________________________ 49. Central Tax No ____________________________________________ 50. VAT No _________________________________________________ Date : (Signature of Propreitor/Partner)  58 PART B (2) DETAILS OF FIRM FOR PRIVATE/PUBLIC LIMITED COMPANIES 51. Name of the Company: ________________________________ 52. Registered at: ___________________________________________ 53. Registering Authority: _________________________________ 54. Statute under which Registered: _______________________ (Indian Companies Act) 55. Registration No: ______________________________________ 56. Type of Industries: ______________________________________ 57. Important Clients: ______________________________________ 58. Address of Registered Office: - City/Town State Pin 59. Telephone Numbers (Including STD Code): - Office Mob Fax Other 60. Ownership details: __________________________ (Equity/debt holding) 61. Number of Directors: ______________________________  59 62. Name of the Managing Director: ______________________ 63. Sale Tax No: ___________________________________________ 64. Central Tax No: _____________________________________ 65. VAT No : _________________________________________________ Date : (Signature of Managing Director)  60 PART B (3) DETAILS OF FIRM FOR CENTRAL/STATE CO-OPERATIVE 66. Name of the Co-operative: _______________________________ 67. Registered at: __________________________________________ 68. Registering Authority: ________________________________ 69. Statute under which Registered: _______________________ (Co-Operative Societies Act) 70. Registration No: ______________________________________ 71. Type of Sector: ________________________________________ 72. Important Clients: _____________________________________ 73. Address of Registered Office: - City/Town State Pin 74. Telephone Numbers (Including STD Code): - Office Mob Fax Other 75. Ownership details: _________________________________ (Equity/debt co-operative members) 76. Name of Chairman: _________________________________ 77. Name of the Managing Director: _______________________ 78. Sale Tax No: ___________________________________________  61 79. Central Tax No: ______________________________________ 80. VAT No: _________________________________________________ Date : (Signature of Managing Director)  62 PART C - BUSINESS DETAILS 81. Business Performance During Last Three Years: - Financial Type of Organization Turnover Profit Profit Year Business Associated Rs before after With Tax Tax (Rs) (Rs) 82. Are you on the list of approved contractors of any other authority? If yes specify the following: - Yes/No Ser Name of Articles dealt Period of Value of No Organization with contract contract (a) (b) 83. Are you already doing business with ASC under some other name? If yes specify the following: - Yes/No Ser Name of Comd Stn Articles Period Value of Self/ No firm being of contract under supplied contract power of attorney (a) (b) 84. Were you, under this name or any other name, a partner of any firm, which may have been removed from the list of approved Government Contractors? If yes, specify the following: - Yes/No Ser Name of firm Regd with Regn No Date of No which Removal Comd (a) (b)  63 85. Have you or any of your partners ever been removed / cashiered /dismissed from Government service on disciplinary grounds ? If so, furnish details: - Yes/No Ser Name of Name of Firm Organization from Date No partner where removed / dismissed/ cashiered (a) (b) 86. Have you ever applied for Registration with ASC under this or any other name? If yes, specify the following: - Yes/No Ser Yr of Name of Command Commodities Regn Result of No applying Firm applied for No, if application allotted (a) (b) 87. Have you operated any ASC contracts? If yes, specify the details: - Yes/No Ser Year Articles Command Stn(s) Contract No Value (a) (b) 88. Articles in which the applicant usually deals and the length of applicant’s experience in trade. Ser No Articles Experience (a) (b) (c) (d)  64 PART D – FINANCIAL STATEMENTS 89. Bank Account Details: - Name of Bankers Name of Branch Bankers Code Account No Name of Account Holder Type of Account 90. Type of Financial Instruments (FDRs) Held: - Bank In favour FDR No Date Value Maturity of Date 91. Other Financial Instruments Equity/Debt/Loans (Sundry debtors): - Type of Organization Present If Remarks instrument face pledged, value please indicate details  65 92. (a) Immovable Property. (i) Address (ii) Location (Attach Schedules) (iii) Owners Name (iv) Obtained through Gift/Inherited/ Purchased/Other (v) Registering authority (vi) Date of Registration (vii) Value as per Govt approved evaluator (viii) Date of evaluation (ix) Encumbrance Certificate (x) Financed/Self owned Note: (i) Schedule of Property showing the location, valuation and encumbrance certificate in original duly registered with the Executive Magistrate/Notary in original along with two photocopies are required to be attached. (ii) For every additional properties attached separate sheets along with supporting documents. (b) Capital Invested in Business (excluding above details):- (i) Type of Business _________________ (ii) Capital Invested _________________ (c) Amount Willing to Invest for ASC Contracts: - Rs _______________ (This amount should be the total amount, the applicant wishes to invest at anyone time within a fortnight (15 days) and will form the basis for fixing the Contract Carrying Capacity)  66 DECLARATION TO BE MADE BY THE APPLICANT/FIRM 93. In Case of an Individual. “I, _____________________________ (name of the individual), do hereby declare that the entries made in the application form are true to the best of my knowledge”. Station : (Signature of Applicant) Dated : 94. In Case of a Firm. “We, _______________________