(a) At the Stage of Inviting Bids - To safeguard against a bidder withdrawing or altering its bid during the bid validity period in the case of advertised or limited tender enquiry, bid security (also known as earnest money) may be obtained from the bidders except those registered with the Central Purchase Organization or Department or University.
(i) The amount of bid security shall ordinarily range between two to five percent of the estimated value of the goods to be procured.
(ii) The bid security may be accepted in the form of Account payee demand draft, Fixed Deposit Receipt, Bankers’ cheque or Bank Guarantee from any of the commercial banks in an accepted form safeguarding the interest of the University in all respects.
(iii) The bid security shall remain valid for a period of forty-five days beyond the final bid validity period.
(iv) Bid securities of the unsuccessful bidders shall be returned to them at the earliest after expiry of the final bid validity and latest on or before the 30 th day after the award of the contract.
(b) At the Stage of Awarding the Contract - To ensure due performance of the contract, performance security at the rate of five to ten percent of the value of the contract may be obtained from the successful bidder awarded the contract irrespective of its registration status.
(i) The performance security may be in any form referred to in clause (a) above.
(ii) Performance security shall remain valid for a period of sixty days beyond the date of completion of all contractual obligations by the supplier including warranty obligations.
(iii) Bid security shall be refunded to the successful bidder on receipt of performance security.
Advance or Part Payment to Suppliers
23. (A) Advance Payment
(1) The payments for services rendered or goods supplied shall be released only after the services have been rendered or supplies made: Provided that advance payments may be considered in the following cases, namely:-
(i) advance payments demanded by firms holding maintenance contracts for servicing air-conditioners, computers, other costly equipment and other related goods or materials;
(ii) advance payment demanded by firms against fabrication contracts, turn- key contracts and other related matters.
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(2) Advance payments shall not exceed the following limits, namely:-
(i) thirty percent of the contract value to private firms;
(ii) forty percent of the contract value to a State Government or Central Government agency or a Public Sector Undertaking; or
(iii) In case of a maintenance contract, the amount shall not exceed the amount payable for six months under the contract.
(3) (a) The concerned procuring Department may relax the ceilings (including the percentage for advance payment to private firms) referred to in sub-regulation(2) in consultation with the Finance wing of the University.
(b) While making advance payment, adequate safeguards in the form of bank guarantee shall be obtained from the firm.
(B) Part Payment Depending upon the terms of delivery incorporated in a contract, part payment to the supplier may be released after it dispatches the goods from its premises in terms of the contract.
Criteria to be followed in the procurement process