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CHAPTER - I
PROCEDURE FOR IMPLEMENTATION OF INFORMATION TECHNOLOGY
STORES UNDER THE DELEGATED FINANCIAL POWERS
1. Information Technology has been identified as the single greatest enabler to propel the
country in the new millennium. Accepting the potential of Information Technology
(IT) in the Army, the Govt of India has given a special thrust to facilitate IT
penetration down to the lowest levels of the military hierarchy. Due to the peculiarities
of IT which make it distinct from any other technology, a need was felt to setup a new
budget head "Budget Head IT, Major Head 2076, Minor Head 110 (H)"
exclusively for IT in the Indian Army in 1998. This was done with the primary aim to
speed up and streamline the process of automation in the Army as also specifically
address the peculiar nature of IT characterized by rapid obsolescence and the need to
procure services and not only products.
The need for Automation of the lowest level units/formation in the Army was
felt and therefore in the year 2003-04, ADG IT has allocated funds to all the Line
DTEs for further Sub Allocations to all lower units/formations. The requirement of
Hardware has been specified & Specifications predefined by the allotting authorities.
The procurement is to be processed & finalized under sanction of the Formation HQrs
who would be CFA in these cases under the delegated financial powers vide G of I, M
of D letter No. A/89591/FP-1/693/2002/D (GS-1) dated 22/04/2002.
The procurement cost of Automation of subordinate units/formations falls
below Rs. 5 Lakhs. Hence the following SOP is laid down for processing these cases
for obtaining CDA/IFA concurrence and obtaining CFA sanction.
2. SOP for effecting purchases of Information Technology related products
(Hardware/Software) up to RS. 5 Lakhs out of funds allotted to lower units/formations
by Line DTEs specifically for Automation.
3. General Guidelines
(a I)
(a II)
All procurements under this head will be effected after prior concurrence of
the appropriate IFA/CDA. The IFA/CDA will be associated at the
following stages:
a a)
Acceptance of Necessity – Fund allocating authority will specify the
requirement of Hardware for Automation with Technical
Specifications.
a b)
Financial Terms & Conditions of the Draft Tenders for the
procurement of Hardware & specific items would be on the terms &
conditions standardized as per SOP of ADG IT.
TPC/PNC stage:
Procurement being less than Rs. 5 Lakhs,
constitution of PNC and its advice is regulated in terms of para 9 of G of I,
M of D letter No. A/89591/FP-1/693/2002/D (GS-1) dated 22/04/2002.
-2(a III)
The file with complete papers/documents such as Tender Enquiry, List of
Vendors, Technical Specifications, Original tenders/quotations, CST,
recommendation of board of officers. Draft Supply Order letters of
allocation and specification/sanction accorded by Line Directorate will be
put up to IFA/CDA for financial concurrence and the vetting of draft
supply order before the case is put up to CFA for sanction of the purchase.
(a IV)
Post contractual monitoring such as Delivery Period (DP) extension,
waiving of liquidity damages, risk purchases and issue of corrigendum to
the supply orders etc. would be regulated as per laid down norms of SOP of
ADG IT.
(b)
Powers Without Consultation of IFA/CDA: All procurements such as
stationery and consumables under this head will be effected with CFA
sanction, following the laid down procedure except that IFA/CDA
concurrence is not required to be taken.
4. The Sub Heads under which the expenditure may be effected out of Budget Head IT,
Major Head 2076, Minor Head 110(H) are as under: a) Purchase of computers systems up to Rs. 5 Lakhs.
b) Purchase of computers peripherals and ancillaries.
c) Computer Stationery and consumables.
5. PPP for such procurements is not essential. The items should however be specified in
the fund allocation letter.
Preparatory Activities Essential For Procurement:
6. General: The procurement process in respect of all procurements except in cases is
broadly enumerated in the succeeding paras. During the procurement process it will be
ensured that laid down standards both in software solution and network solutions are
strictly adhered to.
7. Initiation of IT Purchases:
The end user will initiate the case for purchases as
soon as Funds are allotted for Procurement of Hardware specifying the items to be
procured with the Technical Specifications.
Approval in the PPP is dispensed with, since allocation is specific and procurement
is standardized and general in nature.
8. Technical Examination and Approval:
Technical Specifications are specified
by the Line DTEs in their allotment letter. If not specified by any of the Fund
allocating authority, the standard Technical Specifications of Hardware approved by
ADG IT is to be taken as guidelines and quotations obtained for the same. Hence,
separate Technical Examination and approval is not required.
-39. Concurrence of IFA/CDA:
IFA/CDA will accord concurrence (acceptance of
necessity and vetting of the Draft Supply Order to a project within 10 working
days after receipt of the complete set of documents viz. Quotations, CST, Draft
Supply Order with terms and conditions. Any observation on a case will be raised
within the laid down timeframes and no piecemeal observations will be raised
thereafter.
10. Approval of the CFA:
The CFA thereafter may accord his financial sanction.
Actual Procurement Process
Tender:
Tender is the basic document laying down the parameters of items
requirement of the user and acts as a reference document for the vendor as
well as the user. Hence, all the required specifications should be brought
out in the letter calling for Quotations/Tenders taking due care in
preparation of the document.
Tender Preparation:
Tenders will be called for in the form of letter calling for
Quotations duly incorporating the Technical requirements of the items to be
procured. The standard Technical Specifications for PCs, Printer, UPS &
Software will be indicated in the call letter and there will not be any
deviation in the Specifications specified by LINE DTE/allotting
authority/ADG IT. Quotations should contain Technical Specifications but
should not be brand specific.
Since the items are of standard & general in nature, Two Bid
System need not be followed.
Payment Terms: The payments should be made as under:
100 % against delivery, Installation & Acceptance Testing of the Hardware.
11. Annual Maintenance Contracts:
AMC can be considered at the end of
warranty period through the respective workshops.
12. Limited Tendering:
Due to the peculiar requirements in the IT field and vast
proliferation of all types of vendors and suppliers, often supply of locally assembled
substandard products is quite likely. Moreover, technical capability and expertise of
the vendors is a very important aspect that must be objectively considered for any IT
Procurements. Resorting to limited tendering to short-listed vendors of repute, while
ensuring adequate competition, is therefore essential to get the requisite quality.
Hence, tenders may be invited only from vendors from an approved list of vendors
proposed at each HQ, keeping in view the requirement for adequate competition and
transparency.
13. Vendor Lists:
A list of approved Vendors will be maintained and updated by all
the CFAs on regular basis. This will serve as a guideline for lower units/formations.
-414. Single Vendor Case:
A single Vendor situation may result after tendering if only
a single Vendor responds to a tender or the bids of other Vendors have been rejected.
In all such cases, re-tendering will normally resorted to. However, in exceptional
circumstances, CFA may recommend such procurement with the approval of
IFA/CDA, in which case approval of the next higher CFA with the concurrence of
respective IFA/CDA is to be obtained.
15. Technical Evaluation: The Technical Evaluation can also be dispensed with since
Technical Specification are of standard & general in nature and have also been
specified by the Allotting Authority. Conformity to authorised Technical
Specifications in the Quotations will however be ensured by the unit through a Board
of Officers.
16. Procedure for Technical Evaluation & Price Negotiation: may be regulated in
terms of para 9 of G of I, M of D letter No. A/89591/FP-1/693/2002/D (GS-1) dated
22/04/2002.
17. Tender Purchase Committee/PNC:
TPC/PNC may be regulated in terms of para
9 of G of I, M of D letter No. A/89591/FP-1/693/2002/D (GS-1) dated 22/04/2002.
Quotations will be scrutinised by a Board of Officers, CST will be prepared and the
successful L1 Vendor will be recommended by the Board.
Draft Supply Order will be prepared duly incorporating all terms & conditions
and submitted to IFA/CDA with all documents for vetting.
18. Sanction of the CFA: The Draft Supply Order will be vetted by IFA/CDA and
sanction for procurement will be accorded by the CFA i.e. Formation HQrs concerned.
19. Supply Order: Supply order will be placed on the vendor, after approval by the
CFA on vetting of the same by CDA (IFA). The supply order will include all terms
and conditions like brand/make/model of each equipment and cost of each item.
The under mentioned clauses will be highlighted:
a) Details of Procurement
b) Items to be Supplied
c) Over all cost
d) Delivery Period
e) Payment Terms
f) Acceptance Testing Methodology
g) Liquidated Damages Clause
h) Warranty and Maintenance cover during warranty period
i) AMC or Maintenance of software if applicable
j) Spares and consumables if applicable
k) Software updates/upgrades if applicable
-520. Procurement Procedure for Computer Stationery and Consumables: The
procurement procedure for this category shall remain the same as is being followed for
any other public grant. Computer stationery and consumables can be procured
only from the IT fund and not from any other grant. The authorities delegated
financial powers out of the IT budget will also procure computer stationery and
consumables for units/establishments under them and who have not been delegated
financial powers for the same. The extent of expenditure on Computer Stationery and
Consumables will be as laid down by Army HQ at the time of allocation of the budget.
The procedure for procurement will be as under: (a)
The requirement of funds for computer stationery and consumables for various
HQs/units/establishment will be consolidated by the respective CFAs.
(b)
Based on availability, the funds will be allocated to various HQs/units/
establishments under a CFA.
(c)
Sanction of the CFA will be obtained by the concerned organization following
laid down procedures.
(d)
Subsequent placing of order, procurement of the items and forwarding bills for of
payment will be done by the respective organizations.
21. Installation and Acceptance of the System: The Vendor will deliver and install the
Hardware on the terms & conditions specified in the Supply Order. The user will be
responsible for the complete installation and acceptance of the system. Acceptance
Test will be carried out by the Board of Officers to ensure proper functioning of the
Hardware.
Feedback
22. The following feedbacks shall be sent by the end user/sponsor to the CFA, Line DTEs
and ADG Info Tech in respect of all procurements computer stationary and
consumables: (a) On Issue of Supply Order:
it is initiated.
A copy of the Supply Order shall be sent as soon as
23. The ADG IT shall maintain a database of Feedbacks regarding all IT projects that are
under Post Implementation Monitoring.
24. Monitoring of Contractual Obligations:
Monitoring of contractual obligations
will be the responsibility of the user. In case of any breach of contractual obligations,
the CFA will be intimated. Any dispute as to the terms and conditions of the Supply
Order will be referred to the CFA. IFA/CDA will be associated with monitoring of
post contractual obligations such as Delivery Period (DP) extension, waiving of
liquidated damages and issue of corrigendum to the supply orders etc.
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GUIDELINES ON ITEMS THAT CAN BE PROCURED
(This list is representative and not exhaustive)
1. Computer System:
a) Stand alone PCs including peripherals and System/Commercial Off The Shelf
Software.
b) Office Automation Software-like MS Office 2000, Lotus Notes etc.
2. Computers Peripherals and Ancillaries:
a) Standby Power management equipment such as CVT, UPS, batteries for UPS,
Spike Busters etc.
b) Computer Storage Devices and backup devices like external disk stations, hard
disks, tape drives, zip drives, zaz drives, DAT drives, Microfilming equipment. etc.
c) Input Devices like Keyboards, Scanners, Touch Screen, Mouse, Joystick,
Trackballs, Digitizers, Light pens etc.
d) Output Devices like all types of Plotters, Printers such as dot matrix printers, inkjet
printers, laser printers, line printers etc.
e) Fax, Modems, Fax modems, Photocopiers etc.
f) CD changers, CD Drives, Juke Boxes, DVD ROM Drives, CD writers etc.
g) Projection Systems like Video Projection Systems, Visualizers, LCD Projectors,
Overhead Projectors, LCD Panels etc
h) Multimedia Kits, Audio-Visual Kits, Mics, Speakers, DVD Drives, Digital
Camera, Digital Video Camera etc.
i) Display Systems like Monitors, Anti-Glare Screens etc.
j) Printer sharer, video splitters etc.
k) Batteries for UPS.
l) Printer Heads.
m) All types of interface cards and memories such as RAM, video graphic cards,
video grabber cards, controller cards etc.
n) Networking equipment like switches, hubs, routers, Network interface cards,
Mounting cord, Information outlets, surface mount box, jack panels, jack patch,
Racks with accessories, conduits etc.
o) Test and maintenance Equipment like multimeters, IC testers, vacuum cleaner etc.
p) Special computer furniture.
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3. Computer Stationery and Consumables:
a) Computer printer paper of various sizes and types.
b) Map litho paper etc for photocopying purposes.
c) Cleaning cloth, cleaning liquid, drive cleaning kits etc.
d) Magnetic Media such as Floppies, tapes, write-able CDs etc.
e) Magnetic Storage Devices.
f) Printer ribbons, Cartridges etc for all types of printers.
g) Photocopier paper for photocopier and laser/inkjet printers.
h) Connectors like RJ 45, RJ 11 etc.
i) Cables for devices like printer, scanner, fax, UPS etc, Power Cables, LAN UTP /
OFC Cables etc.
j) Plastic parts of equipment.
k) Batteries of UPS, lamps for projection systems etc.
-8SAMPLE SUPPLY ORDER
Tele:
(Name of the UNIT)
No. …………………………. Dated ……………
To,
M/s _____________________
_________________________
_________________________
SUPPLY ORDER FOR _______________________________________
Dear Sir,
1. Please refer to our Letter of Intent (LOI) No __________________ dated __________
and your letters dated __________. A formal order is hereby placed on you for and on
behalf of the President of India for the supply of items mentioned in Annexure ‘I' of
Appendix ‘A’ and on terms and conditions mentioned in Appendix `A’.
2. Please acknowledge receipt of this Supply Order within 7 working days from date of
issue of this Supply Order, on the Performa attached at Annexure 'II' of Appendix
‘A’ hereto with a copy to the consignee. In case acknowledgement is not received
within the target date it would be assumed that the said Supply Order has been
accepted unconditionally.
3. Please quote on all letters and invoices the number and date of this letter for reference.
4. Your quotation and letters referred to above and this Supply Order and the schedules,
appendix and annexure, annexed hereto, together with your letter of acknowledgement
thereto, as Annexure 'II', Appendix A shall be the sole repository of this transaction.
OC
UNIT
Encl:
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Appendix ‘A’
(Refers to Para 1 of Supply Order No ______________________ dated ________)
SCHEDULE OF TERMS AND CONDITIONS OF SUPPLY ORDER
1. Office of Issue
2. Name & address
Contractor.
Name of the Office
of
the M/s ________________________
____________________________
____________________________
3. Name of Purchaser
The President of India
4. Vendor’s quotation No & date
Your Quotation dated __________ & _________
5. Condition of the contract
The General Conditions as given here under, shall apply
and no other terms and conditions will govern the supply
order
6. Particulars governing Supply
: The items being supplied will conform to the
specification enclosed.
7. Quantity Cover in the contract
: As given at Annexure ‘I’
8. Price per Unit (Inclusive taxes As given at Annexure ‘I’
and duties)
9. Total Price:
Rs __________/-(Rupees ________________________
only)
10. Consignee
____________________
11. Paying Authority
Concerned Regional CDA
12. Head of Account
Major Head 2076, Minor Head 110(H), Detailed Head
433/02
13. Delivery Period
As given in the terms and conditions of the supply order.
Also ref Para 16 of the Appendix
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Acceptance Testing:
Delivery of all Hardware and Commercial Software,
Peripherals will be at ________________. The individual components will be tested for
acceptance. The specifications of the equipment should be in conformity with the details
provided by the vendor and as per given specifications. The user would issue an
acceptance certificate on successful completion of acceptance testing as per Annexure.
The date of issuing the acceptance certificate would be deemed to be the date on which
warranty will commence.
Performance Bank Guarantee:
The vendor shall furnish a performance Bank
Guarantee equal to ten percent (10 %) of the total value of the contract within seven days
of the receipt of supply order. In case of non-adherence to the delivery schedule for all
deliverables of the project as given above in Para 16, liquidated damages will be deducted
from this amount. Bank guarantee will be valid till expiry of the warranty. The
Performa for bank guarantee is given at Annexure III to Appendix A of SOP on IT
issued by ADG IT, which will be perused.
Payment Terms: 100 % against delivery, Installation & Acceptance Testing.
Liquidated Damages:
If the vendor fails to complete in full, all delivery and
Implementation schedule, the vendor shall pay to the Customer Liquidated Damages
which will be charged as given below. Thereafter the BUYER will have right to terminate
the Supply Order in the case of such delay beyond 10 weeks, and the buyer would have
the option to complete the project from the market at the vendors risk and cost. The mode
and method of such risk purchase would be at the total discretion of the Customer.
a) Hardware and Commercial Software: - The vendor shall pay to the Customer
Liquidated Damages, at the rate of one percent (1%) of the total value of hardware and
commercial software for delay beyond the period as given at para 16 (a) for each
complete week or part thereof, of delay upto a maximum of ten percent (10%) of the
value of hardware and commercial software. Thereafter the BUYER will have right to
terminate the supply order in the case of such delay beyond 10 weeks, and the buyer
would have the option to buy the hardware, software from the market at the vendors
risk and cost. The mode and method of such risk purchase would be at the total
discretion of the Customer.
b) Application Software: - The vendor shall pay to the Customer – ADG IT liquidated
damages, at the rate of one percent (1%) of the total value of software for delay
beyond the period as given at para 16 (c) for each complete week or part thereof, of
delay upto a maximum of ten percent (10%) of the value of the application software.
Warranty: You will provide one year free on site comprehensive warranty for
hardware, operating system commencing on the date of acceptance and a guarantee to
provide spares and consumables on payment for a period of five years irrespective of
AMC. During warranty, you will repair/replace without any cost any
equipment/Part/accessory, which becomes defective except items of a consumable nature.
During the warranty period all warranty benefits received by you from the OEMs, for any
equipment pertaining to third parties will be passed on in toto to the Buyer. The Buyer
may invoke the bank guarantee in case you fail to ensure rectification of defects within
two weeks of the defect being intimated to you. Printer heads for all printers will be
covered under warranty and will not be treated as consumables.
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Annexure ‘I’ to Appendix ‘A’
(Refers to para 1 of Supply Order No _______________________ dated _______)
DETAILS OF HARDWARE & SOFTWARE FOR AUTOMATION OF
Ser No.
Item
QTY
UNIT PRICE IN RS
TOTAL IN RS
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Annexure 'II' to Appendix ‘A’
(Refers to para 2 of Supply Order No _______________________ dated _______)
No _________________
To,
The President of India
Through
(Name of the Unit)
Sirs,
1. Receipt is acknowledged of your Supply Order No_______________ dated ________
together with enclosures.
2. We hereby agree to supply the said items as per the terms and conditions contained
therein.
Yours faithfully
(Name & Designation of the officer signing this)
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Annexure 'III' to Appendix ‘A’
(Refers to Para 29 of Appx 'A' of Supply Order No _________________ dated _______)
ACCEPTANCE TEST PROCEDURE (ATP)
ATP Guidelines:
1. Some guidelines for acceptance testing of various systems are as enumerated below.
2. Details of Activities. The board activities for the board would be as under: a) Receipt of hardware and software delivered by the Vendor.
b) Physical check of all packages and boxes.
c) Checking the items received as against the quantities mentioned in the supply
order.
d) Carry out the acceptance testing of the PCs, Servers and other peripherals.
e) Shipment of the hardware and peripherals to the various locations as per details
given in the supply order (if applicable) under arrangements of the vendor.
f) The report of the board of officers shall give the date-wise details of hardware
receipts.
Acceptance Testing of Stand Alone Desktops:
a) Configuration of the hardware including the peripherals should be as per the
supply order.
b) All machines should be checked physically to ensure all order items are supplied as
contracted.
c) It should be ensured that all computers meet the specifications as per the supply
order. Printout of the diagnostic software report giving details of performance of
the PCs should be taken. (The vendor should provide the diagnostic software).
d) The performance of each component of the system should be tested.
e) Each component must be checked for its specifications i.e. hard disk, network card,
RAM etc.
f) All the software being provided must be the latest and complete with all manuals.
They must include the licenses, Media (CD ROM) and certificate of authenticity.
g) Software that has been contracted for as preloaded (Operating System, Office
Automation Software, Anti Virus Software should be loaded by the vendor.
Additionally the software should be supplied with Media (CD ROM)
documentation and Certificate of Authenticity. The requisite number of Media,
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be checked.
h) Monitors should be checked for their correct settings and there should be no
flickering.
i) The UPSs should be checked for their complete range and standby characteristics
as asked for in the supply order and as per the technical literature.
j) All CD-ROM drives must be checked for their correct configuration.
k) All printers should be tested for their functioning and sample printouts taken.
Printer self tests are a good means to check their services.
l) Software for the UPS (if contracted) should be compatible with the Operating
System asked for. The UPS should be tested for provision of the required backup
time at the specified load.
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Annexure 'IV' to Appendix ‘A’
(Refers to Para 29 of Appx 'A' of Supply Order No _________________ dated _______)
(Name of the Unit)
ACCEPTANCE CERTIFICATE: Hardware, Software & Peripherals
1. Certified that all the computers, peripherals and software mentioned in the Supply
Order No _______________________ dated __________ has been physically checked
and tested as per the testing procedures mentioned in the above mentioned supply
order. All the items are found to be correct and meet the specification mentioned in the
supply order.
Members of the Board
1.
2.
3.
Office Seal:
Date:
Place: