ANNEXURE-26 (c.f. Para-11.5.

5) INSTRUCTIONS TO THE CONTRACTORS ACKNOWLEDGEMENT OF CONTRACT: Please acknowledge the acceptance of tender on form DGS&D-98 DELIVERY As per Clause 14 of Conditions of Contract DGS&D-68 (Revised) the time and date of delivery of stores stipulated in the schedule shall be deemed to be the essence of the contract and delivery must be completed not later than the date(s) as specified in the contract. The contract will commence from the date of issue of advance letter of acceptance wherever issued. PRE-INSPECTION OF STORES BY CONTRACTORS:Contractors should satisfy themselves that the stores are in accordance with the terms of the contract and fully conform to the required specification by carrying out a thorough preinspection of each quota before actually tendering the same for inspection to the Quality Assurance Officer nominated under the terms of the contract. INSPECTION OF STORES BEFORE DESPATCH:The Contractor shall make the inspection call to the Quality Assurance Officer, as per format given at the end of this annexure duly indicating upto which period the delivery period of the relevant contract is valid. If the contract calls for supply of stores with ISI Marking the contractor should clearly indicate validity period of BIS license and also conform that the same has not been revoked or no legal action has been initiated by BIS while requesting for pre dispatch inspection. The contractor shall allow all reasonable facilities and free access to his works and records to the Quality Assurance Officer. The Contractor shall, at his own expense, afford to the Quality Assurance Officer all reasonable facilities as may be necessary for satisfying himself that the goods are being and/or have been manufactured in accordance with the contract requirements. For the aforesaid purpose be may require the supplier to make arrangements for inspection and/or testing of the supplies or any part thereof or any material at his premises Officer. The samples, all materials, tools, labour, testing equipment and assistance which the Quality Assurance Officer may demand of him to verify the conformity of the goods to the quality requirement etc. will be provided without any extra charge.

The result of the inspection will be notified to the supplier by the Quality Assurance Officer. Testing of Routine nature as per the contract specification, will be done at the firms premises by their Testing Machines and with their labour. The entire cost thereof will be borne by the firm, irrespective of the test results. If the firm are not adequately equipped with necessary testing facilities to carry out the required test, they can take the help of approved laboratories in the nearby areas for carrying out the necessary test over there. The entire cost of such Tests, however, including the to and fro transportation charges and the labour charges will have to be borne by the firm regardless of the results. DESPATCH OF STORES;The stores, should on no account be dispatched/delivered without getting the same inspected and passed by the Quality Assurance Officer stipulated in the contract. The stores covered by such Inspection Notes must be dispatched within 30 days from the date of issue of Inspection Notes. If the contractor is not able to dispatch the stores within this period of 30 days, a further extension of 30 days can be permitted by an officer not lower than the next to higher in rank who issued the Inspection Note, on sufficient ground such as non availability of railway booking, steamer booking, force major conditions etc. The Quality Assurance Officer shall make an endorsement of the fact of extension of Inspection Notes. If the stores are not dispatched within this total period of 60 days the contractor will have to get the goods re-inspected and to obtain fresh inspection notes. The fresh inspection notes shall contain a note that these have been issued in lieu of the earlier inspection notes, clearly indicating the printed serial No. and date of issue of invalid notes. In the case of sub-centres, the second validation of inspection notes can be done by the head of the sub-centres irrespective of the officer who has signed the Inspection Note. Cases may arise where part of the inspected quantity covered under a particular Inspection Note has been dispatched and the balance quantity could not be dispatched within the stipulated period of 60 days. In such cases fresh inspection will be sought for by the contractor for the undespatched balance quantity. The request letter will be in duplicate indicating the original Inspection Note number and explaining the circumstances under which the contractor failed to dispatch the entire inspected lot within the validity period and could not get the original Inspection Note amended by the Quality Assurance Officer before dispatch of the part quantity of the inspected lot. On inspection of the outstanding quantity afresh, the Quality Assurance Officer will issue the fresh Inspection Note with a cross reference to the earlier Inspection Note. One copy of the request letter of the firm attested by the Inspector shall accompany copy No.1 of the new Inspection Note. The Quality Assurance Officer will also indicate the new Inspection Note No. on this copy of the firms request letter. In such a case there would be no necessity of obtaining a Nonpayment certificate for the outstanding quantity which have not been dispatched against the earlier Inspection Note.

In respect of shelf life items, where the firms are to dispatch the stores immediately after issue of Inspection Note, no extension beyond the initial period of 30 days will be allwed. On the other hand provision for items with shelf life of 30 days dispatch should be made within a days of Inspection of stores with shelf life of 30 days and within 14 days of inspection of stores having shelf life of 6 months. While following general instructions regarding dispatch of stores may be kept in view, the dispatch instructions as given in clause have also to be taken note of. (i) Unless otherwise specified in the Schedule(s), supplies will be available from the date the Contract commences. (ii) In case of Order placed on F.O.R. Station of Despatch basis, the Stores shall be dispatched by Goods Train by the most economical route and at most economical Tariff on FREIGHT TO PAY basis. (iii) In case the Order(s) call for the dispatch of Stores on FREIGHT PRE-PAID basis. Stores shall be dispatched by GOODS TRAIN by the most economical route and at most economical Tariff on FREIGHT PRE-PAID basis. In that event the Freight will be reimbursed by the Paying Authority at actual against the documentary proof i.e. Photocopy of the Railway Receipt. The reimbursement of Freight will be made along with the initial advance payment. (iv) In respect of all dispatches in SMALLS (less than a wagon load), the Stores shall be dispatched by Parcel/Passenger Train by the most economical route and at most economical Tariff on FREIGHT PRE-PAID basis. In that event the Freight will be reimbursed by the Paying Authority at actual against documentary proof i.e. Photocpy of the Railway Receipt. The reimbursement of Freight will be made along with the initial advance payment. (v) In case the Order calls for the dispatch of Stores by Road, the dispatches may be made by Road. However, in such cases, the advance payment will be made against the Provisional Receipt issued by the consignee on advance payment copy of the Inspection Note and the freight will be reimbursed at actual or the Railway Tariff by Parcel/Passenger train, whichever is lower. (vi) In case of Contract providing for prices on F.O.R Destination basis, the Contractor should invariably dispatch stores freight Pre-Paid in all cases and should indicate the same in the bill. (vii) The Contractor should forward the Railway Receipt to the consignee by Registered Post Acknowledgement Due/Speed Post/Courier immediately after dispatch of stores. Should any demurrage be incurred owing to delay on their part in forwarding Railway Receipt the amount of such charges will be deducted from their bills.

(viii) Challans, Packing Notes must be submitted to the consignees sufficiently in advance of the actual arrival of Stores at destination failing which the Contractor will be held responsible for any subsequent discrepancy between actual receipt and the materials details in the challan received later. Where stores are dispatched under Military Credit Note, the contractor will be responsible for properly filling form DGS&D:27 (old No.WSB-220) which will be supplied to him along with the M.C. Note and for returning the same to the Quality Assurance Officer concerned after dispatch of the Quality Assurance Officer concerned after dispatch of stores duly signed and dated, within one week after the M. C. Note has been used. Failure on the part of the contractors to return these forms properly filled in, will be notified by the Quality Assurance Officer to the Purchase Officer concerned who will take such actions against the defaulting firm as may be necessary. In extreme cases of default this may even lead to the suspension of business. TRANSIT INSURANCE The purchaser will not pay separately for transit insurance and the supplier will be responsible till the entire stores contracted for, arrive in good condition at destination. The transit risk in this respect may be covered by the contractor by getting the stores duly insured if he so desires. The insurance cover shall be obtained by the contractor in his own name and not in the name of the consignee. The consignee will as soon as possible but not later than 45 days of the date of arrival of stores at destination, notify the contractor of any loss or damage to the stores that may have occurred during transit. If the contractor has not agreed to above standard clause the advance payment for the supplies shall be made against clear Railway Receipt only. If the consignment have been dispatched under R/R on Said to Contain basis, payment shall be made only with consignees receipt certificate. PURCHASERS RIGHT WHILE GRANTING EXTENSION IN DELIVERY PERIOD. In cases where only a portion of the stores ordered is tendered for inspection at the fag end of the delivery period and also in cases where inspection is not completed in respect of the portion of the stores tendered for inspection during the delivery period, the purchaser reserves the right to cancel the balance quantity not tendered for inspection within the delivery period fixed in the acceptance of tender at the risk and expense of the stores tendered for inspection during or at the fag end of the delivery period are not found acceptable after carrying out the inspection the purchaser is entitled to cancel the contract in respect of the same at the risk and expense of the contractor. If, however the stores tendered for inspection are found acceptable, the purchaser may grant an extension of the delivery period subject to the following conditions:-

(a) The purchaser has the right to recover from the contractor the pre-estimated damages as per contract terms as liquidated damages on the stores which the contractor has failed to deliver within the delivery period fixed for delivery. (b) That no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, Sales Tax or on account of any other tax or duty leviable in respect of the stores specified in the acceptance of tender which takes place after the date of the delivery period stipulated in the acceptance of tender shall be admissible on such of the said stores as are delivered after the date of delivery stipulated in the acceptance of Tender. (c) That notwithstanding any stipulation in the contract for increase in price on any other ground, no such increase which takes place after the date of the delivery stipulated in the acceptance of tender shall be admissible on such of the said stores as are delivered after the expiry of the D/P stipulated in the acceptance of tender. (d) But nevertheless, the purchaser shall be entitled to the benefit of any decrease in price on account of reduction in or remission of Customs Duty, Excise Duty, Sales Tax or on account of any other tax or duty or on any other grounds as stipulated in the price variation clause which takes place after the expiry of the date of delivery stipulated in the acceptance of tender. The contractor shall not dispatch the stores, till such time an extension in terms of para-1(a) to (d) above is granted by the purchaser and accepted by the supplier. If the stores are dispatched by the supplier before obtaining an extension letter from the purchaser, he would be doing so at his risk and no claim for payment shall lie against dispatched or any other expenses which the supplier may have incurred. The purchaser shall however has a right to cancel the contract in terms of clause 14(7) of DGS&D-68 (Revised). It shall be no defence that the consignee has taken delivery of stores dispatched by the supplier without getting an extension letter and therefore the contract has been kept alive. In cases where the entire quantity has not been tendered for inspection within delivery period stipulated in the acceptance of tender and the purchaser chooses to grant an extension of the delivery period the same would be subject to conditions (a) to (d) mentioned in Para 1 above. Whenever the supply is not completed within the delivery period of the contract wherein Bank Guarantee has been furnished, then the request for the extension of delivery period will automatically be taken as an agreement for getting Bank Guarantee extended. INTIMATION OF COMPLETION OF SUPPLIES:The contractor must furnish an intimation to the Controller of Accounts, Department of Supply concerned about the completion of the supplies in the prescribed form (DGS&D 200) given in Annexure-I in duplicate along with their bills for 95% payment against the last installment of the contract, and that non-compliance of these instructions by the contractor might result in delay in payment of their bills on receipt of form DGS&D-200

duly certified by the Controllers of Accounts, the concerned purchase section will initiate action for finalization of the purchase case. PREPARATION AND SUBMISSION OF BILLS Bills for payment are required to be submitted by the suppliers in the standard bill form DGS&D-135 in quadruplicate. The original, duplicate and triplicate copies along with the supporting documents are to be submitted to the Accounts Officer specified in the contract. The triplicate copy should bear the following additional marking: Not for payment to be used as DI Memo. In the case of bills for advance 100% payment in respect of consignments inspected and dispatched the quadruplicate copy will be sent to the consignee along with copy No.2 and 4 of the Inspection Note, form DGS&D-84 and Railway Receipt etc. to enable the consignee to prepare the necessary Receipt Certificate. In all other cases the quadruplicate copy of the bill will sere as contractors office copy. Note:- Contractors are permitted to use their own cyclostyled or printed copies of DGDS&D-135 provided these are the exact copy of DGS&D-135. SUPPORTING DOCUMENTS TO ACCOMPANY BILLS The documents which are to accompany advance 90%, 95%, bills are mentioned below: (a) The Accounts Office copy No.1 of the Inspection Note form No. DGS&D-84 duly signed by the Quality Assurance Officer. NOTE: In the case of consignments dispatched piecemeal for want of transport facilities copy No.1 of Inspection Note for the full quantity inspected will be attached to payment of bills relating to the first consignment. These will also be accompanied by a letter written by the contractor and addressed to Chief Controller of Accounts, Department of Supply concerned, intimating that bills for subsequent supplies giving reference to number and date of the bills with which the Inspection Note was forwarded will be submitted. (b) Counterfoil of the Military Credit Note (by those firms only which are authorized by the competent authority to the Central Government to sign them), if any, in connection with the stores for which payment is claimed. (c) The cash receipt, if any, from the Railway or the inland Steamer Co. when freight payable by the purchaser under the terms of the contract has been paid by the contractor. (d) The provisional certificate from the consignee in the case of Local Delivery or dispatch by road.

Note:- The cash receipt, if any, from the Railway/Inland steamer Co. is only required to support the contractors claim for refund of freight paid by him and not as evidence of dispatch of stores. (e) In the case of stores inspected abroad, the copy of inspection certificate received by the contractor from abroad. (f) A Photostat copy of R/R as proof of despatch of material attested by themselves. However, in case where that facility of furnishing Photostat copy is not available, there is no objection in furnishing a true copy of the R/R duly attested by a Gazetted Officer, M.P, M. L. A, Notary Public and/or Magistrate. (g) The supplying firm are required to furnish a certificate on the bill form No.dGS&D135 about the genuineness and correctness of the R/R number and Date etc. quoted in their bill for advance payment, in the following form:I/We have personally examined and verified and do hereby certify that the goods in respect of which the payment is being claimed have been actually dispatched by me/us under R.R. No. /Bill No./Air Consignment Note No.. dated duly drawn in favour of consignee which is genuine and mentioned in the bill and that I/We held myself/ourselves personally responsible for the correctness of this statement. I/We further certify that the above mentioned R/R No/ Bill No./Air Consignment Note No. dated.. has been forwarded to the consignee mentioned in the contract under registered post acknowledgement due on .. NOTE: (i) The certificate is to be signed by duly authorized person of the firm and he should be the same as one signing the bill. His designation and name of the firm on whose behalf he has signed the bill is required to be indicated below his dated signature. (ii) The above certificate has to be incorporated by the supplier in all bills for advance payment. (iii) As the certificate is essential as a safeguard regarding the genuineness and correctness of the R/R No. and date quoted on the advance bills, no requests from suppliers for modification in the form of the certificate or it total withdrawal should be entertained.

(iv) The words acknowledgement due appearing in the second Para of the certificate mentioned above is important and purchase officers/sections should ensure that this is correctly stipulated in the contracts placed. The documents to accompany balance 10%, 5%, 2% bill are mentioned below:(a) The Accounts Office Copy No.2 and

(b) One Additional Copy No.5 of Inspection NoDGS&D-84 with both the Inspection Certificate and Receipt portion duly completed and signed by the Quality Assurance Officer and the consignee respectively. The documents to accompany final 100% bills are mentioned below:The Accounts Copy No.1 and Accounts Office Copy No.2 and one additional Copy No.5 of the Inspection Note (DGS&D-84) with the Inspection Certificate and receipt certificate there on duly completed on all the three copies by the Quality Assurance Officer and the consignee respectively. The counterfoil of the Military Credit Note (by those firms only which are authorized by the competent authority of the firm Central Government to sign them) if any, used in connection with the stores for which payment is claimed.

The cash receipt from the Railway or the Inland Steamer Co. when freight Payable by the Purchaser under the terms of the contract has been paid by the contractor. In the case of stores inspected abroad, the copy of the Inspection Certificate, if any, received by the contractor from abroad. NOTE: (a) All copies of Inspection Note and Continuation Sheets must be prepared with copying pencil or typewriter placing carbon paper under each sheet. Care should be taken that all the copies are legible. (b) All copies of Inspection Note and Continuation Sheet other than those intended for Accounts Officers can be signed in copying pencil in one stroke by placing carbon paper under each sheet provided the signature comes out legibly. Copies of the Inspection Notes and continuation sheets intended for the Accounts Officer should be signed individually in ink. (c) Copy No.1 and 2 of Inspection Notes are Accounts Office copies against which payment is made by the Account Officer. The word Accounts Office Copy No.1 and

Accounts Office Copy No.2 should be endorsed by means of rubber stamp on Copy No.1 and Copy No.2 respectively and the endorsement attested with full signature in ink. (d) The consignee may prepare the receipt certificate of the Inspection Notes either by typing, by carbon process or by indelible pencil but these must be signed individually in ink. (e) Use of Ball Point Pen will also be permitted on bills and other related documents submitted to the Government for Payment as well as bills drawn on Treasuries provided the writings and the signatures are both clear and legible. However, cheques issued for Government payment will continue to be written and signed in ink and provisions of Rules 156 the Central Treasury Rules Vol.I should be strictly followed. FORMAT FOR INSPECTION CALL To Concerned Inspection Office Sub: A/T No.dated. Nodated against R/C No Your file No. S/O

Ref:

Sir, Against the subject contract we have the pleasure to offer the following stores for arranging immediately inspection by your office: The delivery period of the contract expire on It is also confirmed that the BIS Licence to supply the stores with ISI Marking has not been revoked/or discontinued and the same is valid upto. Item No. Description of stores Qty. offered for inspection

Yours faithfully, Signature of firm * This confirmation is required where the stores are to be supplied with ISI Marking only.

PART - II For Office Use Item Qty. Accepted Qty. rejected Date of inspection Deficiency observed No. Facsimile own rejected stores Stores accepted Signature & Name of the Quality Assurance Officer Copy to: 1. 2. 3. Firms M/s.. Quality Control Cell File