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OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
29-03-2013
Dy.CMM/C&W
Sub : Procurement of Coupler body - Exercising of (+) 30%
quantity
Option Clause.
Ref : Your Note No:34 to 43 of Case file No. 38.12.1300.
-oOoThe proposal resubmitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 28.02.13) for the above subject item are on higher side. The
rate received from lowest technically suitable offer is Rs.20,400/-, whereas
the instant Purchase Orders rates are varying from Rs.19,299 to
Rs.19,390. In view of the financial advantage to Railways, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on (i)
M/s. Frontier alloy steels Ltd, Kanpur for a quantity of 733 Nos, (ii)
M/s.Rausheena Udyog Ltd, Kolkata for a quantity of 90 Nos and on
(iii) M/s.Rine Engineering Ltd, Baddi for a quantity of 73 Nos with
original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie.,


COS.

(ii)

Obtaining the personal approval of PHOD for utilization the NS


indent as per Railway Board directives.

(iii)

Fixing reasonable delivery schedule for the enhanced


quantity.

(iv)

Ensuring availability of funds during the current financial


year.

(v)

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For
FA&CAO/S&W.

NOTE/1
Sub : Procurement of Coupler body - Exercising of (+) 30%
quantity
Option Clause.
Ref : Dy.CMM/C&Ws Note No:34 to 43 of Case file No.
38.12.1300.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio-1 may kindly be perused.
For procurement of the above subject item Six Purchase
Orders have been placed on 3 firms viz., (i) M/s. Frontier Alloy Steels
Ltd, Kanpur (AIR-Rs.19390 each) (ii) M/s.Rausheena Udyog Ltd,
Kolkata (AIR- Rs.19299.51 each) and (iii) M/s.Rine Engineering Pvt
Ltd, Baddi (AIR- Rs.19299.51 each) with the acceptance of COS for
a total value of Rs.6,30,98,961.14 (L/F-N/30).
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on the above three firms as the demands are available
for the subject item.
The proposal has been examined and the following are the
observations:

Earlier, when a proposal for exercising (+)30% option clause on


M/s. Rausheena Udyog Ltd, Kolkata (AIR- Rs.19,299.51 each)
(Folio-4) was submitted to this office for concurrence, this office
returned the proposal with some observations, placed at Folio-3,
which may kindly be perused. The proposal was initiated based
on the recommendations of the subsequent tender committee,
which had recommended to exercise option clause on M/s.
Frontier Alloy Steels Ltd, Kanpur (AIR-Rs.19,390 each) as the
rates received in subsequent tender on 27.09.12 are on higher
side (AIR- Rs.19,969.18). The performance of all the three firms
was also not submitted. As such, the proposal was returned with
some observations (Folio-3).
Now, Stores branch has resubmitted the proposal duly
invoking option clause on other two firms also as the rates (AIRRs.20,400 each) received in subsequently opened tender on
28.02.13 (L/F-282) are on higher side. The case is under
finalization with SAG tender committee.

ii

Necessary ANE (L/F-285) and one NS indent (L/F-248) are


available in the case file to cover the proposed option quantity.
However, the personal approval of PHOD (CME) for utilizing the
NS indent is not placed in the case file. It is stated that it is under
process.

(PTO)

iii

NOTE/2
As advised earlier by this office, the supply position of all
the three firms is submitted as mentioned below.

S.N
o

Name of the firm

01

M/s. Frontier Alloy Steels Ltd, 2444


Kanpur (DP-30.09.13)
Nos

1503 Nos 61.50%

02

M/s.Rausheena Udyog Ltd, 450 Nos


Kolkata (DP- 31.07.13)
M/s.Rine Engineering Pvt Ltd, 364 Nos
Baddi (DP- 31.03.13)

180 Nos

40%

120 Nos

33%

03

Ordered
Qty

Supplied
Qty

% of
supply

As it can be seen from the above that the firm M/s.


Rine Engineering Pvt Ltd, Baddi has supplied only 33% of
originally ordered quantity even though the DP is expiring
on 31.03.2013. In case of other two firms the DP is
available upto 31.07.13 and upto 30.09.13. However, it is
certified by the stores department that the performance of
all the firms is satisfactory. Since the rate of instant POs
are financially beneficial when compared with the
subsequently opened tender, we may agree for the
proposal on the above three firms.
iv
1
2
3
4
5

The financial implications of the proposed option clause are


as follows:

Original Value of the three POs.

`.
6,30,98,961.1
4
3258 Nos
932 Nos
Nil
896 Nos

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
(a) Frontier alloy 733 Nos
(b) Rausheena 90 Nos
(c) Rine Engineering 73 Nos
6
Value of the proposed option Qty
`.1,73,58,690
7
Total Value of the POs after exercising (+)
`.8,04,57,651
30% option clause
.14
8
Competency of Sanction required
COS
In view of the financial advantage, if approved we may concur
the above proposal.

With the exercise of above option clause, the revised value will
be with in the powers of original accepting authority ie., COS. As
such, the proposal requires the concurrence of FA&.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/
(SF)

NOTE/79
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:91275
Dt:22.05.12
Ref :Dy.CMM/DSLs Note No:32 of Case file No.
DSL/10/11/2855.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/DSL,
which is placed at Folio- 100/C may kindly be perused.
For procurement of the above subject item One Purchase
Order has been placed on M/s. G.S.Products, Dehradun at an all
inclusive rate of Rs.2022.075 per number and at a total value of Rs.
8,68,82,496.53 with the acceptance of COS (L/F-N/23).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.
The proposal has been examined and the following are the
observations:
1.0
The proposal is being initiated based on the recommendations
of the subsequent tender committee. It is stated that a new tender
was opened on 12.02.2013 for the subject item. The All inclusive
rate accepted in the new tender is Rs.2150.40 each (AIR). As the
rates of instant PO is lower than the subsequent tender and
financially beneficial to Railways, SAG tender committee has
recommended to invoke (+)30% option clause (L/F-153) on the
instant PO for a total quantity of 12,890 Nos, which was accepted by
GM.
2.0
It is certified by the stores department that the performance of
the firm is
satisfactory. However, it is observed from Stock
position slip (L/F-148) that the firm has not commenced the supplies
till date. Out of ordered quantity of 42,967 Nos, the firm has to
supply 8,000 Nos within 31.12.2012 and balance 34,967 Nos, from
01.04.2013 to 30.09.2013. As per Railway Board guidelines, the
performance of the firm should be satisfactory, while exercising the
option clause.
3.0 The financial implications of the proposed option clause are as
follows:

Original Value of the PO.

Original Qty in the POs.

(+) 30% option quantity

4
5
6

Qty already utilized under option clause


Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

Rs.8,68,82,49
6.
42,967
Nos
12,890
Nos
Nil
12,890 Nos
Rs.26,06,454
7
Rs.11,29,47,0
43
COS

NOTE/80
4.0
Necessary ANE is available (L/F-148) in the case file to cover
the proposed option quantity.

5.0
With the exercise of above option clause, the revised value will
be with in the powers of original accepting authority ie., COS. As
such, the proposal requires the concurrence of FA&.CAO/S&W.
In view of the poor performance of the firm, put up for orders
whether to concur the proposal to exercise (+)30% option clause on
the above firm or otherwise please.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/6
In continuation to the section note at pre-page, Dy.CMM/S&T
has resubmitted the proposal (Flag
) in response to this office
observations placed at Flag - , which may kindly be perused.
As advised by this office, the quantity has been redistributed
among the two firms covering the correct consignee as per orders
placed on the firms.
The financial implications of the proposed option clause are as
follows:
1

Original Value of the POs.

2
3
4
5

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
(a) M/s. Continental Telepower
Industries/New Delhi - 39.45kms
(b)M/s.SPM Power & Telecom

Rs.3,02,15,38
7.
309.7kms
92.91kms
Nil
92.91kms

6
7
8

Pvt ltd/HYB- 53.46kms.


Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required

Rs.90,64,616
Rs.3,92,80,00
3.
COS

As the subsequent tender committee has already


recommended to exercise option clause on the above two POs, as
the rate received is on higher side, if approved we may concur the
proposal.
The proposal has the administrative approval of CMM/E (Flag).
With the exercise of above option clause, the revised value will
be with in the powers of original accepting authority ie., COS. As
such, the proposal requires the concurrence of FA&.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 18-04-2013
Dy.CMM/DSL
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:91275
Dt:22.05.12
Ref : Your Note No:32 of Case file No. DSL/10/11/2855.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 12.02.13) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.2150.40, whereas the instant
Purchase Order rate is Rs.2022.07. In view of the financial advantage and
as recommended by SAG tender committee, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on
M/s.G.S.Products, Dehradun for a quantity of 12,890 Nos with
original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i) Obtaining the Sanction of original accepting authority, ie., COS.
(ii)

Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(ii) Ensuring availability of funds during the current financial year.


(iii)

Getting the MPOs vetted by Stores Finance section.

This issues with the approval of FA&CAO/S&W.


Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/81
Sub : Procurement of Bed sheets Handloom bleached.
Exercising of (+) 30% Option Clause on M/s.Ushamas Handloom
Tex/Madurai (P.O No:92062 Dt: 28.08.12)
Ref : Dy.CMM/S&Ts Note No:38 to 41 of Case file No.
79.11.1448.92062.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/S&T, which is
placed at Folio-103/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. Ushamas Handloom Textiles /Madurai (AIRRs.134.70 per No.) with the acceptance of COS for a total value of
Rs.2,95,87,528.50 (L/F-N/23).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available.
The proposal has been examined and the following are the observations:
i

Stores branch stated that a new tender has been opened on 22.03.2013,
in which higher rates (Rs.144.00-L/F-491) were received for the subject
item. The tender is under finalization with SAG tender committee. In view
of the financial advantage when compared with the new tender rates, the
proposal is being initiated to exercise option clause on the above firm for
a quantity of 86,492 Nos as against the option quantity (1,01,379 Nos)
available in the PO. Earlier, for a quantity of 14,887 Nos option clause was
exercised on the same firm, for which finance concurrence was also
signified by this office with the approval of FA&CAO/S&W (Note/72/73)
vide letter placed at Folio-93/C, which may kindly be perused.

ii

Necessary ANE (L/F-493/494) for a quantity of 331586 Nos is available in


the case file to cover the proposed option quantity.

iii

The financial implications of the proposed option clause are as follows:

Original Value of the PO.

2
3
4
5
6

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Rs.4,55,19,305.
70
3,37,931 Nos
1,01,379 Nos
14,887 Nos
86,492 Nos
Rs.1,16,50,472.

7
8
9

Total Value of the PO after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

00
Rs.5,91,75,057.
00
COS
30-04-2013

NOTE/73
iv

It is certified by the stores department that the performance of


the firm is satisfactory. The firm has supplied 1,90,000 Nos as
against the originally ordered quantity of 2,19,655 Nos.

The original DP of the firm is available upto 30.04.13.

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. The
administrative approval of CMM has been obtained for exercising option
clause (Folio-103). As such, the proposal requires the concurrence of
FA&CAO/S&W.
In view of the above, if approved we may concur the above
proposal.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 29-04-2013
Dy.CMM/S&T
Sub : Procurement of Bed sheets Handloom bleached.
Exercising of (+) 30% Option Clause on M/s.Ushamas
Handloom Tex/Madurai (P.O No:92062 Dt: 28.08.12)
Ref : Your Note No:38 to 41 of Case file No.
79.11.1448.92062.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 22.03.2013) for the above subject item are on higher side. The
rate received from Lowest tenderer is Rs.144.00, whereas the instant
Purchase Order rate is Rs.134.70. In view of the financial advantage,
finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s. Ushamas Handloom Tex/Madurai for a quantity of
86,492 Nos with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., COS.

(ii)

Ensuring that no lower rates have been received in terms of para


3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iv)

Ensuring availability of funds during the current financial

year.
(v) Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 10-04-2013
Dy.CMM/S&T
Sub : Procurement of 2 core X 25sqmm Power cable - Exercising of
(+) 30%
Option Clause on (a) M/s.Continental Telepower
Industries/New
Delhi & (b) M/s.SPM Power & Telecom Pvt ltd/HYB.
Ref : (i) Your Note No:21 to 51 of Case file No. PS.56-11-1032.
(ii) This office letter No:ASF/QO1 Dt:19.02.2013, 05.03.2013 &
26.03.13
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 19.10.2012) for the above subject item are on higher side. The
rates of the instant purchase orders are financially beneficial to Railways.
Further, the subsequent tender committee has also recommended to
invoke option clause on these two firms. In view of the financial
advantage, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s. Continental Telepower Industries/New Delhi
for a quantity of 39.45kms & on M/s.SPM Power & Telecom Pvt
ltd/HYB for a quantity of 53.46kms with original terms and conditions
with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., COS.

(ii)

Obtaining the personal approval of PHOD for utilizing the NS


indents to cover the option quantity as per Railway Board
guidelines.

(iii)

Ensuring that no lower rates have been received in terms of


para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iv)

Fixing

reasonable

delivery

schedule

for

the

enhanced

quantities.
(v)

Ensuring availability of funds during the current financial year.

(vi)

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
NOTE/83
Sub : Procurement of Axel Box housing finish.
Exercising of (+) 30% Option Clause on M/s.Rine
Engineering Pvt ltd (P.O No:90554 Dt: 14.03.13)
Ref : Dy.CMM/C&Ws Note No:27/28 of Case file No.
PC.30.12.1102.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio-105/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. Rine Engineering Pvt ltd, Baddi (AIR- Rs.9,200/- per
No.) with the acceptance of CMM for a total value of Rs.35,88,000 (L/FN/19).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the demand is available.
The proposal has been examined and the following are the
observations:
1.

Stores branch stated that a new tender has been opened on


24.01.2013, in which higher rates (Rs.10,100/--L/F-167) were

received for the subject item. The JAG tender committee of the new
tender has recommended to exercise (+)30% option clause on the
subject PO for a quantity of 117 Nos (L/F-168). In view of the
financial advantage when compared with the new tender rates, the
proposal is being initiated to exercise option clause on the above
firm for a quantity of 117 Nos.
2.

Necessary ANE (L/F-166) is available in the case file to cover the


proposed option quantity on CRS/TPTY.

3.

It is certified by the stores department that the performance of the


firm is satisfactory. However, it is observed from the History sheet
that the firm has not yet started the supplies though extension was
given from 30.04.13 to 31.07.13. Stores branch is stating that DD is
ahead. However, there is a financial benefit of Rs.900/- per one
number.
4.

The financial implications of the proposed option clause are as


follows:

Original Value of the PO.

2
3
4
5
6

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
35,88,000.00
390 Nos
117 Nos
Nil
117 Nos
Rs.10,76,400.
00
Rs.46,64,400.
00
CMM
31-07-2013

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Sr.AFA/SF.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 02-05-2013
Dy.CMM/C&W
Sub : Procurement of Axel Box housing finishExercising of (+)
30% Option
Clause on M/s.Rine Engineering Pvt ltd (P.O No:90554 Dt:
14.03.13)
Ref : Your Note No:27/28 of Case file No. PC.30.12.1102.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed from the History sheet that the firm has not yet
commenced its supplies even after extending the Delivery Period from
30.04.13 to 31.07.13 with LD and with Denial clause. As such, the
performance of the firm may not be Satisfactory.
In terms of Para 3.4 of Railway Board letter No: 99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of the
firm should be satisfactory. The performance of the firm needs to be
improved to invoke option clause on the firm.
Hence, the proposal is returned herewith.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

0.
0

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 07.05.2013
Dy.CMM/C&W
Sub : Procurement of Flap Door for Box N and Box NH Sto RDSO
Drawing No/WD90007-S 1 Exercising of (+) 30% Option
Clause.
Ref : Your Note No:34 of Case file No. PW 38-12-1900.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
In view of the financial advantage to Railways, finance concurrence
is hereby signified for exercising (+) 30% Option Clause on M/s.N.S.
Engineering Projects Pvt. Ltd. /Kolkatta a quantity of 450 nos. @
Rs. 4500(AIR) with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)
(ii)

Obtaining the Sanction of original accepting authority, ie., COS.


Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)
(iv)
(v)

Fixing reasonable delivery schedule for the enhanced quantity.


Ensuring availability of funds during the current financial year
Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/85
Sub :- Procurement of Hydraulic oil servo system HLP.68
Exercising of (-)30% option clause. P.O.No:91077 Dt:05.05.2012.
Ref :- Dy.CMM/Gs Note No. 23 to 24 of Case file No:PO.80.11.1152.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/G, is placed at Folio-107/C which
may kindly be perused.
One Purchase Order has been placed for procurement of the above subject
item on M/s.Hindustan Petroleum Corporation Ltd/Chennai (L/F-106) for a
quantity of 1,35,360 LTRS at a total value of Rs..1,14,82,588.80 with the
acceptance of CMM/G (L/F-N/11).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
91077 Dt: 05.05.12 for a quantity of 40,407 LTRS.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
10.04.2013, from lowest technically suitable offer is Rs.79.26 per litre
(L/F-127-129), whereas the instant PO rate is Rs.84.83per litre (L/F-106).
Earlier, (+)30% option clause was exercised on this firm as the rates
received in the subsequent tender are on higher side.

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.79.26 per litre, but the firm refused to accept the offer.
The firm still has to supply 40,407 ltrs only. Though the (+)30% quantity
works out to 40,608 Ltrs, the balance quantity to be supplied by the firm
is only 40,407 ltrs. As such, it is proposed to cancel 40,407 ltrs duly
exercising (-)30% option clause on the firm.

(iii)

As the original tender was finalized with JAG tender committee and
accepted by CMM, the above proposal requires the concurrence of
Dy.CAO/S&W for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-107).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.

Submitted for kind perusal and orders please.


SSO(A)/(SF)
Sr.AFA/(SF)
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
2013

Dt. 09-05-

Dy.CMM/C&W
Sub : Procurement of Axel Box housing finish.
Exercising of (+) 30% Option Clause on M/s.Rine Engineering Pvt ltd
(P.O No:90554 Dt: 14.03.13)
Ref : Your Note No:27/28 of Case file No. PC.30.12.1102.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
24.01.2013) for the above subject item are on higher side when compared with the
rates of the instant purchase order. Further, the subsequent tender committee has
also recommended to invoke option clause on the above Purchase Order. In view of
the financial advantage, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s. Rine Engineering Pvt ltd, Baddi for a quantity of
117 Nos with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.

Ensuring that no lower rates have been received in terms of para 3.3

of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For
FA&CAO/S&W

NOTE/85
Sub : Procurement of Battery Box .. Exercising of (+) 30% Option
Clause
on M/s.Sri Vari Metal Works (P) ltd/Hosur (P.O No:90284
Dt: 07.02.13)
Ref : Dy.CMM/C&Ws Note No:24/25 of Case file No. PO.30.11.1903.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/C&W, which is placed at Folio109/C may kindly be perused.
For procurement of the above subject item one Purchase Order has been
placed on M/s. Sri Vari Metal Works (P) ltd/Hosur (AIR- Rs.14634.50 per No.) with
the acceptance of CMM for a total value of Rs.87,80,700 (L/F-N/17).
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on the above firm as the demand is available.
The proposal has been examined and the following are the observations:
1.0 Stores branch stated that a new tender has been opened on 22.01.2013, in
which higher rates (Rs.15134.05 L/F-284) were received for the subject item.
The JAG tender committee of the new tender has recommended to exercise
(+)30% option clause on the subject PO for a quantity of 180 Nos (L/F-285). In
view of the financial advantage when compared with the new tender rates, the
proposal is being initiated to exercise option clause on the above firm for a
quantity of 180 Nos.
2.0 A copy ANE (L/F-300) is available in the case file to cover the proposed
option quantity on CRS/TPTY.

3.0 It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from the History sheet that the firm has
supplied only 24 Nos as against the ordered quantity of 600 Nos. Stores
branch is stating that DD is ahead. However, there is a financial benefit of
Rs.500/- per one number.
4.0 The financial implications of the proposed option clause are as follows:
Original Value of the PO.

Rs.

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

87,80,700.0
0
600 Nos
180 Nos
Nil
180 Nos
Rs.26,34,210.00
Rs.1,14,14,910.
00
CMM
15-05-2013

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Dy.CAO/S&W.
In view of the financial advantage involved and as recommended by JAG
tender committee of subsequent tender, if approved we may concur the proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
05-2013

Dt. 13-

Dy.CMM/G
Sub :- Procurement of Hydraulic oil servo system HLP.68
Exercising of (-)30% option clause. P.O.No:91077 Dt:05.05.2012.
M/s. Hindustan Petroleum Corporation Ltd/Chennai
Ref :- Your Note No. 23 to 24 of Case file No:PO.80.11.1152.
-oOoThe proposal received in connection with exercising of (-) 30% Option
Clause on the above subject item Purchase Order has been examined.
As the firm has not accepted for the lower rate received in subsequently
opened tender on 10.04.2013 for the subject item, finance concurrence is
hereby signified for exercising (-) 30% Option Clause on M/s. Hindustan
Petroleum Corporation Ltd/Chennai against PO No:91077 dt:05.05.2012 for
a quantity of 40,407 ltrs.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
05-2013

Dt. 15-

Dy.CMM/C&W
Sub : Procurement of Battery Box .. Exercising of (+) 30% Option
Clause
on M/s.Sri Vari Metal Works (P) ltd/Hosur (P.O No:90284
Dt: 07.02.13)
Ref : Your Note No:24/25 of Case file No. PO.30.11.1903.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
22.01.2013) for the above subject item are on higher side when compared with
the rates of the instant purchase order. Further, the subsequent tender committee
has also recommended to invoke option clause on the above Purchase Order. In
view of the financial advantage, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s. Sri Vari Metal Works (P) ltd/Hosur
for a quantity of 180 Nos with original terms and conditions with in Delivery
Period.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie.,

CMM.
2.0

Ensuring that no lower rates have been received in terms of

para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( P.CHANDRASEKHAR
BABU )
Sr.AFA/SF

For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
05-2013

Dt. 15-

Dy.CMM/C&W
Sub : Procurement of Battery Box .. Exercising of (+) 30% Option
Clause
on M/s.Sri Vari Metal Works (P) ltd/Hosur (P.O No:90284
Dt: 07.02.13)
Ref : Your Note No:24/25 of Case file No. PO.30.11.1903.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
22.01.2013) for the above subject item are on higher side when compared with
the rates of the instant purchase order. Further, the subsequent tender committee
has also recommended to invoke option clause on the above Purchase Order. In
view of the financial advantage, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s. Sri Vari Metal Works (P) ltd/Hosur
for a quantity of 180 Nos with original terms and conditions with in Delivery
Period.
The above concurrence is subject to the following:

1.0

Obtaining the Sanction of original accepting authority, ie.,

CMM.
2.0

Ensuring that no lower rates have been received in terms of

para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/87
Sub : Coverage of Railway Carriage Fan brushless DC(BLDC)
Exercising of (+) 30% Option Clause on M/s.General Auto
Electric
Corporation/Mumbai (P.O No:92145 Dt: 07.09.12)
Ref : Dy.CMM/Elecs Note No:51/52 of Case file No. PE.45.12.1.92145
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is
placed at Folio-111/C may kindly be perused.
For procurement of the above subject item five Purchase Orders have
been placed on (i) M/s. Western Electric & Trading co./Delhi (AIR- Rs.3475/each)
(ii) M/s. Light Engg.Corpn/Solan/HP (AIR- Rs.2749.95)
(iii) M/s.Kapsons Industries Ltd/Jalandhar (AIR- Rs.2749.95)
(iv) M/s.General Auto Electric corporation/Mumbai (AIR- Rs.2700)
(v) M/s.Pyramid Electronics/H.P. (AIR- Rs.3475)
with the acceptance of COS for a total value of Rs.41945647.10 (L/FN/29).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on M/s.General Auto Electric corporation/Mumbai as the demand is
available.
The proposal has been examined and the following are the observations:
1.0

Stores branch stated that a new tender has been opened on 20.03.2013,
in which higher rates (Rs.3420.00 L/F-340) were received for the subject
item. As such, the tender committee of new tender also discussed with
regards to exercising of quantity option clause and recommended to
invoke option clause on the above firm for a quantity of 183 Nos (L/F-407).
In view of the financial advantage when compared with the new tender
rates, the proposal is being initiated to exercise option clause on the
above firm. Earlier, option clause was exercised on M/s. Light
Engg.Corpn/Solan/HP (AIR- Rs.2749.95) & on M/s.Kapsons Industries
Ltd/Jalandhar (AIR- Rs.2749.95)
1.0 A copy of ANE (L/F- 370 ) is available in the case file to cover the
proposed option quantity.

2.0
It is certified by the stores department that the performance of the
firm is satisfactory. However, it is observed from the History sheet that
the firm has not started the supplies even after extending the DP upto
31.05.2013. When the proposal was returned to certify the performance of
the firm, Stores branch is stating that the firm is a Part-II RDSO approved
source and the performance of the firm is satisfactory.

(P.T.O)
NOTE/88
3.0

The financial implications of the proposed option clause are as follows:

Original Value of the 5 POs.

2
3
4
5
6
7

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause (including already option clause
exercised POs)
Competency of Sanction required
Delivery period available upto

8
9

Rs.
4,19,45,647.10
611 Nos
183 Nos
Nil
183 Nos
Rs.4,94,100.00
Rs.4,50,41,206.
75
COS
31-05-2013

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&CAO/S&W and sanction of COS.
In view of the financial advantage involved and as recommended by SAG
tender committee of subsequent tender, if approved we may concur the proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/90
Sub : Procurement of Cone assembly to M/s.NEI/Jaipur Drg No:BP200923 .. Exercising of (+) 30% Option Clause on M/s.National
Engineering Industries Ltd/Jaipur (P.O No:92562 Dt: 29.10.12)
Ref : Dy.CMM/Elecs Note No:16/17 of Case file No. PA.85.11.1363.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is
placed at Folio-113/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. National Engineering Industries Ltd/Jaipur (AIRRs.2147.20 per No.) with the acceptance of CMM for a total value of
Rs.47,64,635.91 (L/F-N/14).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the demand is available.
The proposal has been examined and the following are the observations:
1.0
The subject item is a PAC item (L/F-9) of M/s.NEI/JAIPUR. Stores branch
stated that a new tender was opened on 05.04.2013, in which the same firm
has quoted higher rate (Rs.3008.44 L/F-61) for the subject item. However,
the tender is not yet finalized and is under negotiation stage. In view of the
financial advantage when compared with the new tender rate, the proposal

is being initiated to exercise option clause on the above firm for a quantity of
665 Nos.

2.0
A copy of Shortfall ANE (L/F-65) is available in the case file to cover
the proposed option quantity of M&G/GTPL.
3.0

It is certified by the stores department that the performance of the firm is


satisfactory. It is stated that the firm has supplied 1344 Nos (60%) as
against ordered quantity of 2219 Nos

4.0

The financial implications of the proposed option clause are as follows:

Original Value of the PO.

2
3
4
5
6
7

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
47,64,635.91
2219 Nos
665 Nos
Nil
665 Nos
Rs.14,27,888.00
Rs.61,92,523.91
CMM
31-08-2013

NOTE/91
With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF.
The proposal has the approval of CMM (F-113/C) for exercising option
clause.
In view of the financial advantage involved, if approved we may concur
the proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
14-06-2013

Dt.

Dy.CMM/Elec
Sub : Procurement of Cone assembly to M/s.NEI/Jaipur Drg No:BP200923 .. Exercising of (+) 30% Option Clause on
M/s.National
Engineering Industries Ltd/Jaipur (P.O No:92562 Dt:
29.10.12)
Ref : Your Note No:16/17 of Case file No. PA.85.11.1363.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 05.04.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase order. Further, the subsequent tender
committee has also recommended to invoke option clause on the above
Purchase Order. In view of the financial advantage, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s. National
Engineering Industries Ltd/Jaipur for a quantity of 665 Nos with original
terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie., CMM.

2.0

Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


BABU)

(P.CHANDRASEKHAR
Sr.AFA/SF
For FA&CAO/S&W

NOTE/92
Sub : Procurement of Low maintenance lead acid loco battery
under
(+) 30% Option Clause (P.O No:92027 Dt: 24.08.11 & 91775
Dt:25.07.12)
Ref : Dy.CMM/Elecs Note No:38/39 of Case file No. PE.25.11.2905.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is
placed at Folio- 115/C may kindly be perused.
For procurement of the above subject item two Purchase Orders
have been placed on M/s. The Bharath battery Mfg co.pvt
ltd/Kolkata & on M/s.Exide Industries Limited/Kolkata (AIRRs.10329.82 per No.) with the acceptance of CMM for a total value of
Rs.1,10,32,247.76 (L/F-N/29).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above two firms as recommended by subsequent tender
committee.
The proposal has been examined and the following are the observations:
1.0
The proposal is being initiated based on the recommendations of the
subsequent tender committee which was opened on 11.01.2013. It is
observed that higher rates were received in subsequent tender. As such,
the tender committee discussed in their minutes about exercising of option
clause in Last Purchase Orders to get financial advantage. However, it is
not mentioned specifically in the Recommendations of the proceedings. As
such, this office insisted to obtain CMMs approval for exercising option
clause. But, the proposal was resubmitted again and again stating that
CMM has already accepted for exercising option clause. The proposal was
submitted to this office on 09.04.13 ie., after expiry of Delivery Period
ie.,29.03.13 stating that advance acceptance letters were already issued
to the firms as there is no time to obtain finance concurrence. As such,
there is no option, except to concur the proposal. In view of the financial
advantage, we may signify post-facto finance concurrence to the proposal.

2.0
The financial implications of the proposed option clause are as
follows:
1

Original Value of the two POs.

Rs.
1,10,32,247.76

2
3
4
5
6
7
8
9

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

1068 Nos
320 Nos
Nil
320 Nos
Rs.33,05,542.40
Rs.1,43,37,790.
16
CMM
29-03-2013

NOTE/93
3.0
It is certified by the stores department that the performance of the firms
is
satisfactory. It is stated that the above two firms have supplied
the material
within the delivery date.
4.0

Necessary ANE is available in the case file to cover the above option quantity

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Dy.CAO/S&W.
The proposal has the approval of CMM (L/F-281/C) for exercising option clause.
In view of the financial advantage involved, if approved we may concur the
proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub : Procurement of Densified thermal bonded polyster blocks..
under (+) 30% Option Clause (P.O No:90206 Dt: 28.01.13)
Ref : Dy.CMM/Gs Note No:27/28 of Case file No. PO.75.12.1342.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Flag A may kindly be perused.
For procurement of the above subject item one Purchase Order has been
placed on M/s. Savithri Engg Products, Sirmour (AIR- Rs.880 per No.)
with the acceptance of CMM for a total value of Rs.86,87,360 (L/F-N/21).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm on the basis of a NS indent received from CRS/TPTY.
The proposal has been examined and the following are the observations:
1.0
Stores department stated that a new tender was floated for
procurement of 1080 Nos of the subject item based on a NS indent received
from CRS/TPYS. The tender was opened on 21.05.2013 and it is observed that
the L1 tenderer who quoted Rs.825.66 is a RDSOs Part II firm. As per extant
rules the firm is eligible for developmental order ie.,15% of NPQ. But, the firm
stated that part quantity not acceptable. As per rules in vogue, full quantity
can not be placed on the above firm. Then, the quantity should be placed on
L2 firm, but the firm has quoted Rs.941.46 per No, which is higher by 6.98%
when compared to LPO. As such, Dy.CMM/G discharged the Tender and
advised to invoke option clause in LPO. As such, the proposal is being
submitted to this office for signifying concurrence to exercise quantity option
clause for a quantity of 1080 Nos.

2.0

The financial implications of the proposed option clause are as follows:

1
2
3
4
5
6
7
8
9

Original Value of the PO.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs. 86,87,360.
9872 Nos
2962 Nos
Nil
1080 Nos
Rs.9,50,400.
Rs.96,37,760.
CMM
12-11-2013

NOTE/2
3.0

It is certified by the stores department that the performance of the firms is


satisfactory.

4.0

Necessary vetted NS indent is available in the case file to cover the above
option quantity for 1080 Nos.

With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF.
The proposal has the Administrative approval of CMM (Flag A) for
exercising option clause.
In view of the financial advantage involved, if approved we may concur
the proposal.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Exercising of (-)30% option clause on P.O.No.92328
Dt:27.09.2012
(Procurement of Electrodes IRS Class A2 size 4.00 X
450mm..)
Ref : Dy.CMM/Gs Note No:23/24 of Case file No. PO.76.11.1017.
-oOoA proposal seeking finance concurrence for operating (-) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Flag A may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on M/s. Asian Arc Electrodes Pvt ltd and on M/s.Seth
Electrodes Pvt Ltd (AIR- Rs.9.35 per mtr) with the acceptance of CMM for
a total value of Rs.1,12,21,720.40 (L/F-N/19).
Now, Stores branch is proposing to exercise (-)30% quantity option
clause on the above firm as the rates received in subsequent tender are on
lower side.
The proposal has been examined and the following are the observations:
1.0
Stores department stated that a new tender was floated for
procurement of the subject item and the tender was opened on 22.05.2013. It
is observed that the L1 tenderer has quoted Rs.8.32 per metre, which is
lower than the subject PO rate. As such, Stores department vide their letter
placed at L/F-266 advised the firm
M/s. Asian Arc Electrodes Pvt ltd,
Noida to accept the lower rate or (-)30% option clause will be operated. As
the firm did not accepted the lower rate, Stores department is proposing to
exercise (-)30% option clause on the above firm. As such, the originally
ordered quantity will be reduced for a quantity of 2,16,033 mtrs.
2.0
With regards to another firm in the same tender, it is understood that
the firm has supplied the entire quantity in the month of March 2013 itself. As
such, there is no chance to invoke (-)30% option clause on this firm.
3.0

The financial implications of the proposed option clause are as follows:

Original Value of the PO.

2
3
4

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause

Rs.67,29,437.30
.
7,20,111 mtrs
2,16,033 mtrs
Nil

5
6
7
8

Now proposed reduced qty under option clause


Revised quantity in the PO
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
9
Competency of Sanction required
10 Delivery period available upto

2,16,033 mtrs
5,04,078 mtrs
Rs.20,19,908.55
Rs.47,09,528.75
CMM
30-11-2013

NOTE/2
With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
The proposal has the Administrative approval of CMM (Flag A) for
exercising (-)30%option clause.
In view of the lower rates received in subsequent tender, if approved we
may concur the proposal to exercise (-)30% option clause.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
2013

Dt. 03-06-

Dy.CMM/G
Sub : Exercising of (-)30% option clause on P.O.No.92328 Dt:27.09.2012
(Procurement of Electrodes IRS Class A2 size 4.00 X 450mm..)
Ref : Your Note No:23/24 of Case file No. PO.76.11.1017.
-oOoThe proposal received in connection with exercising of (-) 30% Option Clause
on the above subject item Purchase Order has been examined.
As the firm M/s.Asian Arc Electrodes Pvt ltd, Noida has not accepted the lower
rate received in subsequent tender, which was opened on 22.05.13, finance
concurrence is hereby signified for exercising (-)30% option clause on the above
firm for a quantity of 2,16,033 mtrs subject to:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
2013

Dt. 05-07-

Dy.CMM/G
Sub : Procurement of Densified thermal bonded polyster blocks..
under (+) 30% Option Clause (P.O No:90206 Dt: 28.01.13)
M/s. Savithri Engg Products, Sirmour.
Ref : Your Note No:27/28 of Case file No. PO.75.12.1342.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
21.05.2013) for the above subject item are on higher side when compared with the
rates of the instant purchase order. In view of the financial advantage, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.
Savithri Engg Products, Sirmour for a quantity of 1080 Nos with original terms
and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie., CMM.

2.0

Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

No.ASF/Q 01
2013

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 10-07-

Dy.CMM/Elec
Sub : Procurement of Low maintenance lead acid loco battery under
(+) 30% Option Clause (P.O No:92027 Dt: 24.08.11 & 91775
Dt:25.07.12)
Ref : Your Note No:38/39 of Case file No. PE.25.11.2905.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
11.01.2013) for the above subject item are on higher side when compared with the
rates of the instant purchase orders. Further, the subsequent tender committee of
new tender also recommended to invoke (+)30% option clause on the above two
firms. However, the proposal was submitted to this office after expiry of the original
D.P. In view of the financial advantage involved, post-facto finance concurrence is
hereby signified for exercising (+) 30% Option Clause on
M/s. The Bharath

Battery Mfg Co.Pvt ltd/Kolkata for a quantity of 128 Nos and on M/s.Exide
Industries Limited/Kolkata for a quantity of 192 Nos with original terms and
conditions.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.

This issues with the approval of Dy.CAO/S&W.


Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
2013

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 10-07-

Dy.CMM/G
Sub : Procurement of Densified thermal bonded polyster blocks..
under (+) 30% Option Clause (P.O No:90287 Dt:07.02.13 & 90288
Dt:07.02.13) M/s.Durable Polymers/Lucknow & M/s. Savithri
Engg Products, Sirmour.
Ref : Your Note No:21/22 of Case file No. PO.75.12.1209..
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders has been examined.

It is observed that the rates received in subsequent tender (ie., opened on


02.05.2013) for the above subject item are on higher side when compared with the
rates of the instant purchase order. As the subsequent tender discharged due to
high rates and in view of the financial advantage involved in instant purchase
orders, finance concurrence is hereby signified for exercising (+) 30% Option Clause
on M/s.Durable Polymers/ Lucknow & M/s. Savithri Engg Products, Sirmour
for a quantity of 306 Nos each, with original terms and conditions with in Delivery
Period.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.


5.0

6.0

Ensuring reduction of enhanced quantity from the future tenders.


Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
NOTE/95
Sub : Coverage of Carbon brush block for Hitachi.
under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:25/26 of Case file No. PE.25.11.4187.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/Elec, which is placed at Folio117/C may kindly be perused.
For procurement of the above subject item three Purchase Order have been
placed on (i) M/s. Mercen India Pvt Ltd/Bangalore Part-I (AIR- Rs.254.83 per
No.)
(ii) M/s.Assam Carbon Products Limited /Patancheru Part-I

(AIR Rs.254.83) &


(iii) M/s.Mercen India Pvt Ltd/Bangalore Part-II
(AIR- Rs.243.03 per No.) with the acceptance of CMM for a total value of
Rs.1,30,14,620.61 (L/F-N/16,17,18).
Now, Stores branch is proposing to exercise (+)30% quantity option clause on
the above three firms on the basis of a Stock ANE/NS indent received from units.
The proposal has been examined and the following are the observations:
1.0

Stores department stated that a new tender was floated for procurement of
the subject item and was opened on 24.04.2013. It is observed that the rates
received in new tender are on higher side (AIR- 256.05/284.50 per No). As
such, JAG tender committee of the subsequent tender recommended to
exercise (+)30% option clause on LPOs ie., on the above three POs.

2.0

It is certified by the stores department that the performance of the firms is


satisfactory. The firm M/s. Mercen India Pvt Ltd/Bangalore Part-I & M/s.Assam
Carbon Products Limited/Patancheru Part-I have supplied 67% of the originally
ordered quantity. The firm M/s.Mercen India Pvt Ltd/Bangalore Part-II has
supplied the entire quantity with in D.P.

3.0

The financial implications of the proposed option clause are as follows:

Original Value of the three POs.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.1,30,14,114.
13 .
51,507 Nos
15,451 Nos
Nil
15,451 Nos
Rs.39,04,114.13
Rs.1,69,18,734.
74.
CMM
31-07-2013

NOTE/96
4.0

Necessary ANE and one vetted NS indent is available in the case file to
cover the above option quantity for 15,451 Nos.

5.0

It is proposed to exercise option clause on M/s. Mercen India Pvt Ltd/Bangalore


Part-I & M/s.Assam Carbon Products Limited/Patancheru Part-I for a quantity of
6316 Nos each and on the firm M/s.Mercen India Pvt Ltd/Bangalore Part-II for a
quantity of 2819 Nos.

6.0

The proposal has the Administrative approval of CMM (Folio-117/C) for


exercising option clause on the above three firms.

7.0

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.

In view of the financial advantage involved, if approved we may concur the


proposal.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of Diesel Loco Starter Battery 8 V, 450 AH Exercising of (+) 30% Option Clause on M/s.Celtek Batteries
Private Ltd, SBC.
Ref : Dy.CMM/Elecs Note No:24 to 29 of Case file No. PE-45-12-1104.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at Flag A may kindly be perused.
For procurement of the above subject item one Purchase Orders has
been placed on M/s. Celtek Batteries Private Ltd, SBC (AIRRs.32,006.42 per No) with the acceptance of CMM for a total value of
Rs.81,93,643.52 (L/F-N/20).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available.
The proposal has been examined and the following are the observations:
(i)

The proposal is being initiated based on a Non-Stock indent received from


Dy.CEE/S/LGD (L/F-271) and one ANE for the CP 2014-15 (L/F-289). It is
proposed to procure 76 Nos by exercising (+)30% option class in the instant
Purchase Order.

(ii)

Earlier, the proposal was returned with some observations vide letter placed
at Flag-B, which may kindly be perused. As the performance of the firm is
not satisfactory and financial justification for invoking option clause was not
submitted, the proposal was returned.

(iii)

In response to finance observations, Stores department resubmitted the


proposal duly enclosing a tabulation statement of Northern Railway (L/F278), in which higher rates were, received (AIR-Rs.33487.49). As the rates in
instant purchase order are lower side, Stores department requested this
office to concur the proposal.

(iv)

Again, this office returned the proposal vide letter placed Flag-C advising
that, to invoke option clause, the performance of the firms should be
Satisfactory. It was further advised to resubmit the proposal after
completion of sufficient supplies by the firm.

(v)

Now, as the firm has supplied their first lot of 110 Nos (43%) with in DP ie.,
before 31.05.2013, Stores department has resubmitted the proposal to
exercise option clause on the firm. The firm has to supply their second lot of
146 Nos with in 31.08.2013. However, Stores department certified that the
performance of the firm is satisfactory. As such, it is proposed to invoke
option clause on the above firm for a quantity of 76 Nos.

NOTE/2
(vi)

With regards to rate reasonability, it is stated that a new tender was


opened in this Railway on 21.06.2013, wherein higher rates were
received (AIR- Rs.35,194.47) for the subject item. Hence, it is financially
justified to exercise option clause on the above firm.

(vii)

Necessary ANE (L/F-289) and one vetted NS Indent (L/F-271) are available
in the case file to cover the option quantity.

(viii) Administrative approval of CMM/E is available in the case file for


exercising option clause.
(ix)
1
2
3
4
5
6
7
8
9

The financial implications of the proposed option clause are as follows:

Original Value of the PO.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs.81,93,643.52
256 Nos
76 Nos
Nil
76 Nos
Rs.24,32,487.92
Rs.1,06,26,131.
44.
CMM
31-08-2013

In view of the financial advantage involved, if approved we may


concur the proposal.
With the exercise of above option clause, the revised value will be
within the powers of original accepting authority, ie.,CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

No.ASF/Q 01
2013

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 29-07-

Dy.CMM/Elec
Sub : Coverage of Carbon brush block for Hitachi. under (+) 30%
Option Clause.
Ref : Your Note No:25/26 of Case file No. PE.25.11.4187.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
24.04.2013) for the above subject item are on higher side when compared with the
rates of the instant purchase orders. As the subsequent JAG tender committee also
recommended to exercise option clause on the Last Purchase Orders in view of the
financial advantage involved, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s. Mercen India Pvt Ltd/Bangalore Part-I & M/s.Assam
Carbon Products Limited/Patancheru Part-I for a quantity of 6316 Nos each and
on the firm M/s.Mercen India Pvt Ltd/Bangalore Part-II for a quantity of 2819
Nos., with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Ensuring that no lower rates have been received in terms of para 3.3 of

Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.


3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.


5.0

6.0

Ensuring reduction of enhanced quantity from the future tenders.


Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
FINANCIAL ADVISER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

OFFICE OF THE
AND CHIEF ACCOUNTS OFFICER (S&W),
SECUNDERABAD

No.ASF/Q 01
2013

Dt. 29-07-

Dy.CMM/Elec
Sub : Procurement of Diesel Loco Starter Battery 8 V, 450 AH Exercising of (+) 30% Option Clause on M/s.Celtek Batteries
Private Ltd, SBC.
Ref : Your Note No:24 to 29 of Case file No. PE-45-12-1104.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
21.06.2013) for the above subject item are on higher side when compared with the
rates of the instant purchase order. In view of the financial advantage involved,
finance concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Celtek Batteries Private Ltd, SBC for a quantity of 76 Nos, with original terms
and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie., CMM.

2.0

Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Ensuring reduction of enhanced quantity from the future tenders.

6.0

Getting the MPOs vetted by Stores Finance section.

This issues with the approval of Dy.CAO/S&W.


Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/97
Sub : Procurement of Electrodes class A 2, medium size 4.00 x 450mm
to PL No.76010739. - Exercising of (+) 30% Option Clause on
M/s.Classic Electrodes (India) Ltd, Kolkata.
Ref : Dy.CMM/Gs Note No:22 of Case file No. PB.76-12-1017.
-oOoA proposal seeking finance concurrence for exercising (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Folio-119/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have been
placed on M/s.Classic Electrodes (India) Ltd, Kolkata for a quantity of
14,76,915 mtrs and at a total value of Rs.1,22,87,932 with the acceptance of
CMM (L/F-N/20).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm for a quantity of 1,11,192 mtrs as per the recommendations of the
tender committee.
The proposal has been examined and the following are the observations:
1.0

On verification of the case file, it is observed that a new tender was


opened for the subject item on 22.05.13, wherein lower rates were
received when compared to LPO rates. The all inclusive rate of Last
purchase Orders rate was Rs.9.34 per mtr. But, the all inclusive rate
received in new tender is Rs.8.32. As such, (-)30% option clause was
exercised on LPO (No.92328) ie., M/s.Asianarc Electrodes (P) Ltd,
Noida for a quantity of 2,16,033 mtrs. Though one more LPO was also
available with higher rates, as the firm supplied the entire quantity before
finalization of the present tender, (-)30% option clause could not be
operated on the firm.

2.0

Since 2,16,033 mtrs quantity was operated against (-)30% option clause
against LPO No:92328 on M/s.Asianarc Electrodes (P) Ltd, Noida,
some quantity ie., 1,04,841 mtrs were covered in the new tender itself
with lower rate. The balance quantity ie., 1,11,192 mtrs is now being
covered under the present P.O, which was finalized recently, as per the
advice of finance member of the TC ie., Dy.CAO/S&W (Para 2.5 of NOTE/16
of Link file).

3.0

Though the instant Purchase order is having 4,43,074 mtrs under (+)30%
option clause, 1,11,192 mtrs is only being covered under (+)30% option
clause as recommended by TC vide para 5.1 of Note/19 of Link file.

4.0

Stores branch is certifying that the performance of the firm is Satisfactory.


But, it is observed that the firm not yet started the supplies. However, to
get the lower rate advantage, the proposal has been submitted to this
office as per the recommendations of the TC.

NOTE/98
5.0

The DP of the firm is available upto 30.06.2014.

6.0

Administrative approval of Dy.CMM/G is available in the case file for


exercising option clause.

7.0

The financial implications of the proposed option clause are as follows:

Original Value of the two POs.

Original Qty in the POs.

(+) 30% option quantity

4
5

Qty already utilized under option clause


Now proposed qty under option clause

6
7

Value of the proposed option Qty


Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.1,22,87,932.
00
14,76,915
mtrs
4,43,074
mtrs
Nil
1,11,192
mtrs
Rs.9,25,117.00
Rs.1,32,13,049.
00
CMM
30-06-2014

In view of the financial advantage involved, if approved we may concur


the proposal, as recommended by JA grade Tender Committee of New tender.
With the exercise of above option clause, the revised value will be within
the powers of original accepting authority, ie.,CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of 2 Core x 25 Sqmm Power Cable.
under (+) 30% Option Clause.
Ref : Dy.CMM/S&Ts Note No:33 to 40 of Case file No.
PS.56.12.1032.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/S&T, which is placed
at Flag A may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on (i) M/s.Cabcom Cables Ltd/Delhi. Part-II (AIRRs.107278.49 per Km) & (ii) M/s.Continental Telepower Industries/ New
Delhi (Part-II) (AIR- Rs.108473.85 per Km) with the acceptance of COS for
a total value of Rs.3,18,98,483.34 (L/F-N/27&30).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above two firms on the basis of NS indents received from
various S&T units.
The proposal has been examined and the following are the observations:
1.0

It is observed that a tender was opened in South Eastern Railway for the
procurement of the subject item in which higher rates (L/F) were
received when compared with the updated rates of instant purchase
order rates. As such, the proposal is being submitted to this office for
signifying concurrence to exercise quantity option clause on both the
firms.
However, it is observed that the rate (Rs.94,921.70) received from
Part-II firm in South Eastern Railway tender is lower than M/s.Cabcom
Cables Ltd/Delhi (Part-II)(Rs.1,08,370.95) of this Railway when
updated, vide Folio-489 of Link file. As such, it is not correct to exercise
option clause on this firm.
With regards to another Part-I firm ie., M/s.Continental Telepower
Industries/ New Delhi of this Railway, their updated rate
(Rs.1,09,566.31) is lower than SE Railways latest rate (Rs.1,20,180.20).
Hence, we may exercise (+)30% option clause on this firm.

2.0

Earlier, the proposal was returned to Stores department duly advising to


submit the supplies made by both the firms to judge the satisfactory
performance of the firms. Now, Stores department submitted that the
firm M/s. Continental Telepower Industries/ New Delhi has already
dispatched 193.78 kms of cable (77.47%) for which some RDSOs

inspection certificates and calling for inspection certificates were


submitted. As such, we may agree for exercising option clause on this
firm only. As the firm M/s.Cabcom Cables Ltd/Delhi has not commenced
the supplies, Stores department is also not recommending exercising
option clause on this firm.
NOTE/2
3.0
1
2
3
4
5
6
7
8
9

The financial implications of the proposed option clause are as


follows:

Original Value of two POs.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

4.0

Rs.31898483.34
250.370 Kms
75.111 Kms
Nil
75 Kms.
Rs.81,35,538.75
Rs.4,00,34,022.
09
COS
10.08.2013

Necessary vetted NS indent are available in the case file to cover the
above option quantity for 75kms with funds availability in the current
financial year.
5.0

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.

6.0

The proposal has the Administrative approval of CMM (Flag A) for


exercising option clause.

In view of the financial advantage involved, if approved we may concur


to exercise option clause on M/s.Continental Telepower Industries/New
Delhi only.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
07-08-2013

Dt.

Dy.CMM/S&T
Sub : Procurement of 2 Core x 25 Sqmm Power Cable.
under (+) 30% Option Clause.
M/s.Continental Telepower Industries/New Delhi.
Ref : Your Note No:33 to 40 of Case file No. PS.56.12.1032.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rate of the instant Purchase Order is lower when
compared with the rates received recently in South Eastern Railway for the
same subject item. In view of the financial advantage, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.Continental
Telepower Industries/New Delhi only for a quantity of 75 kms, with original
terms and conditions with in Delivery Period. With regards to another firm,
M/s.Cabcom Cables Ltd/Delhi (Part-II), as the rates received from Part-II
source in SE Railway are lower when compared to the updated rates of the
above firm, it is not correct to exercise (+)30% option clause on this firm.
Moreover, the firm has not yet commenced the supplies till date.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie., COS.

2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Ensuring reduction of enhanced quantity from the future tenders.
6.0 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/1
Sub : Procurement of Decorative Thermosetting synthetic resin bonded
laminated sheet star dust gray under (+) 30% Option Clause.
Ref : Dy.CMM/Gs Note No:17/18 of Case file No.PO.75.12.1230.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Flag A may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on (i) M/s.RB Polyboards Ltd/SC. Part-I (AIR- Rs.1002.25
per Number) & (ii) M/s.Shri Dhaniram Laminates Pvt Ltd/ Raipur (PartII) (AIR- Rs.999.00 per Number) with the acceptance of CMM for a total
value of Rs.1,13,32,939 (L/F-N/13).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the firm
M/s.RB Polyboards Ltd/SC on the basis of the
recommendations of subsequent tender committee.
The proposal has been examined and the following are the observations:
1.0
It is proposed to exercise (+)30% quantity option clause on
M/s.RB Polyboards Ltd/SC as the rates received in subsequent tender
are on higher side. It is stated that a new tender was opened on

28.05.2013 in which the lowest firm quoted Rs.1098/- per number,


whereas the subject POs rate is 1002.25 per number. As such, the
subsequent tender committee has recommended to exercise (+)30%
quantity option clause on the above firm (L/F-260) as the rate of the
subject PO is cheaper.
However, it is observed that one more Last Purchase Order was
also available with lower rate ie.,Rs.999.00 on M/s.Shri Dhaniram
Laminates Pvt Ltd/ Raipur. But, the convener has not mentioned the
above rate or name of the firm in subsequent TC minutes, which seems
to be not correct.
When this office returned the case file to submit the reasons for
the same, Dy.CMM/G has stated that on finalization date of subsequent
tender the Delivery Period of the firm was expired. As such, the same
was not mentioned in the TC and not operated (+)30% option clause.
This office also advised Stores department to submit the supply position
of M/s. Shri Dhaniram Laminates Pvt Ltd/ Raipur, but Stores department
did not submitted the same.
2.0
It is stated that the performance of the firm, M/s.RB Polyboards
Ltd/SC is satisfactory as the firm has supplied its 1st lot with in D.P.

NOTE/2
3.0
Necessary ANE is available in the case file (L/F-38) for covering
the above option qty.
4.0
The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6
7
8
9

Original Value of two POs.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs.1,13,32,939
9616 Nos
2885 Nos
Nil
2885 Nos
Rs.28,91,491.25
Rs.1,25,29,127.
25
CMM
30.09.2013

5.0

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.

6.0

The proposal has the Administrative approval of CMM (Flag A) for


exercising option clause.

In view of the above, put up for orders whether to concur the proposal
as recommended by subsequent SAG tender committee of new tender or
otherwise please.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of Anti wear Hydraulic oil - Exercising of (+) 30%
Option Clause on M/s.Indian Oil Corporation Ltd,
Secunderabad.
Ref : Dy.CMM/Gs Note No:17/18 of Case file No. PO.80-12-1201.
-oOoA proposal seeking finance concurrence for exercising (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Flag A may be perused.
For procurement of the above subject item One Purchase Order has
been placed on M/s. Indian Oil Corporation Ltd, Secunderabad for a
quantity of 1,61,443 Ltrs at a total value of Rs.1,27,95,972.18 with the
acceptance of CMM (L/F-N/15)
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm immediately for a quantity of 40,407 Ltrs as per the
recommendations of the tender committee.(Folio - Para 2.3 of Note/8 of Link
file)
The proposal has been examined and the following are the observations:
1.0
On verification of the case file, it is observed that a new tender
was opened for the subject item on 10.04.13, wherein lower rates were
received when compared to LPO rates. The all inclusive rate of Last
purchase Orders (M/s.HPCL/Chennai)rate was Rs.84.83 per Ltr,
whereas the all inclusive rate received in new tender is Rs.79.26ps per
Ltr (M/s.IOCL/SC). As such, (-)30% option clause was exercised on LPO
No.91077 ie., on M/s.HPCL/Chennai for a quantity of 40,407 Ltrs.
Now, as there is a necessity of the material and financial advantage, it is
proposed to exercise (+)30% option clause on
M/s. Indian Oil
Corporation Ltd, Secunderabad to cover the above mentioned
option quantity.
2.0
The proposal is being initiated based on the recommendations of
the subsequent tender committee as per para 2.3 of Note/8 of Link file.
3.0
Earlier this office communicated finance concurrence for
exercising (-)30% option clause on M/s.HPCL/Chennai, in view of the
lower rates received in subsequent tender, for a quantity of 40,407 Ltrs
vide this office letter placed at Flag B.

4.0
Stores branch is certifying that the performance of the firm is
Satisfactory.
5.0

The DP of the firm is available upto 30.09.2013.

6.0
With the exercise of above option clause, the revised value will be
within the powers of original accepting authority, ie.,CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.
NOTE/2
7.0
for

The Administrative approval of CMM/G is available in the case file


exercising the above option clause.(Flag A)

8.0
The financial implications of the proposed option clause are as
follows:
1

Original Value of the PO.

2
3
4
5
6

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+) 30%


option clause
Competency of Sanction required (Upto Rs.2
Crores)
Delivery period available upto

8
9

Rs.1,27,95,471.
71
1,61,443 Ltrs
48,433 Ltrs
Nil
40,407 Ltrs
Rs.32,02,658.82
ps
Rs.1,59,98,131.
00
CMM
30-09-2013

In view of the financial advantage involved, we may concur the proposal


of invoking (+)30% option clause on M/s. Indian Oil Corporation Ltd,
Secunderabad, as recommended by JA grade Tender Committee of New
tender.
Submitted please.
Sr.AFA/SF
Dy.CAO/S&W

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
20-08-2013

Dt.

Dy.CMM/G
Sub : Procurement of Electrodes class A 2, medium size 4.00 x 450mm
to
PL No.76010739. - Exercising of (+) 30% Option Clause on
M/s.Classic Electrodes (India) Ltd, Kolkata.
Ref : Your Note No:22 of Case file No. PB.76-12-1017.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
As the rates received in recently opened new tender are on lower side,
(-)30% option clause was exercised on LPO ie., M/s.Asianarc Electrodes (P) Ltd,
Noida for a quantity of 2,16,033 mtrs. To cover the same, since the rate of the
subject PO is financially advantageous to Railways, finance concurrence is
hereby signified to exercise (+)30% option clause on M/s.Classic Electrodes
(India) Ltd, Kolkata for a quantity of 1,11,192 mtrs only.

The above concurrence is subject to the following:


1.0
Obtaining the Sanction of original accepting authority, ie., CMM.
2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
21-08-2013

Dt.

Dy.CMM/G
Sub : Procurement of Decorative Thermosetting synthetic resin bonded
laminated sheet star dust gray under (+) 30% Option Clause.
Ref : Your Note No:17/18 of Case file No.PO.75.12.1230.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.

It is observed that the rates received in subsequent tender (ie., opened


on 28.05.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase order. In view of the financial advantage
to Railways and as recommended by subsequent tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on M/s.
RB Polyboards Ltd/SC for a quantity of 2885 Nos valuing Rs.28,91,491.25,
with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0
Obtaining the Sanction of original accepting authority, ie., CMM.
2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/99
Sub : Coverage of Brushless Alternator 25KW (Without ERRU/RRU)
under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:23 of Case file No.PE.45.12.1004.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at folio-121/C may kindly be perused.

For procurement of the above subject item three Purchase Orders have
been placed on (i) M/s.BHEL Electrical Machines Ltd/Kasargad. Part-I
(AIR- Rs.2,24,999.38 per set) (ii) M/s.Kerala Electrical & Allied Engg.Co.
Ltd/ Kerala (Part-I) (AIR- Rs. 2,24,999.38 per set) & (iii)
M/s.P.D.Steels/Mohali Part-II (AIR- Rs. 2,24,999.38 per set) with the
acceptance of CMM for a total value of Rs.89,89,981.50 (L/F-N/16) with
(+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above three firms on the basis of the recommendations of
subsequent tender committee.
The proposal has been examined and the following are the observations:
1.0
It is proposed to exercise (+)30% quantity option clause on the
above three firms, as the rates received in subsequent tender are on
higher side. It is stated that a new tender was opened on 23.04.2013 in
which the lowest Part-I firm quoted Rs.2,25,140/- per set (L/F-240),
whereas the subject POs rate is Rs.2,24,999.38 per set(L/F-228). As
such, the subsequent tender committee has recommended to exercise
(+)30% quantity option clause on the above three firms (L/F-243) as the
rates of the subject POs are cheaper.
2.0
It is stated that the performance of the above three firms is
satisfactory as the firms M/s.BHEL Electrical Machines Ltd/Kasargad
and M/s.Kerala Electrical & Allied Engg.Co. Ltd/ Kerala have supplied
their 1st lot with in D.P/extended D.P. Though the third firm
M/s.P.D.Steels/Mohali has not yet started to supply the material,(D.P is
available upto 10.10.2013) the rate of the firm is lower than the above
two firms. As such, it is advantageous to exercise option clause on this
firm also.
3.0
A copy of ANE is available in the case file (L/F-238) for covering
the above option qty.
4.0
The proposal has the Administrative approval of CMM (Folio121/c) for exercising option clause.

(PTO)

NOTE/100
5.0
The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6
7
8
9

Original Value of the three POs. (L/F-N/16)


Original Qty in the 3 POs. (L/F-N/15)
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty (F-121/c)
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto
6.0

Rs.89,89,981.50
40 sets
12 sets
Nil
12 sets
Rs.26,96,994.42
Rs.1,16,86,975.
92
CMM
31.10.2013

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., CMM. The original TC
was finalized by Sr.AFA/SF, but the revised value after exercising
(+)30% option clause exceeds Rs.1 Crore. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
In view of the above, if approved we may concur the proposal.
Submitted please.
Sr.AFA/SF

Dy.CAO/S&W

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
28-08-2013

Dt.

Dy.CMM/G
Sub : Procurement of Anti wear Hydraulic oil - Exercising of (+) 30%
Option Clause on M/s.Indian Oil Corporation Ltd,
Secunderabad.
Ref : Your Note No:17/18 of Case file No. PO.80-12-1201.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
As the rates received in recently opened new tender (ie., on 10.04.13)
are on lower side, (-)30% option clause was exercised on LPO ie.,
M/s.HPCL/Chennai for a quantity of 40,407 ltrs. To cover the same, as there is
a necessity of the material and the rate of the subject PO is financially
advantageous to Railways, finance concurrence is hereby signified to exercise
(+)30% option clause on M/s.Indian Oil Corporation Ltd, Secunderabad
for a quantity of 40,407 ltrs valuing Rs.32,02,658.82 ps only.
The above concurrence is subject to the following:
1.0
Obtaining the Sanction of original accepting authority, ie., CMM.
2.0 Ensuring that no lower rates have been received in terms of para 3.3
of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
02-09-2013

Dt.

Dy.CMM/Elec
Sub : Coverage of Brushless Alternator 25KW (Without ERRU/RRU)
under (+) 30% Option Clause.
Ref : Your Note No:23 of Case file No.PE.45.12.1004.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 23.04.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage to Railways and as recommended by subsequent tender
committee, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on
(i) M/s.BHEL Electrical Machines Ltd/Kasargad for a
quantity of 5 sets,
(ii) M/s.Kerala Electrical & Allied Engg.Co. Ltd/
Kerala for a quantity of 4 sets & (iii) M/s.P.D.Steels/Mohali for a quantity of 3
sets valuing Rs.26,96,994.42, with original terms and conditions with in
Delivery Period.
The above concurrence is subject to the following:

1.0
Obtaining the Sanction of original accepting authority, ie., CMM.
2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/101
Sub : Coverage of Set of 120 Ah VRLA Batteris capacity 6V, 120 Ah
under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:30 to 34 of Case file No.PE.45.12.1396.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed at
Folio-125/C may kindly be perused.
For procurement of the above subject item four Purchase Orders have been
placed on (i) M/s.Microtex Energy Pvt Ltd/Bangalore (Part-II)(AIRRs.1,25,834.32 per set) (ii) M/s.Exide Industries Ltd/Kolkata (Part-II) (AIRRs. 1,25,834.32 per set), (iii) M/s.Amara Raja Batteries Ltd/Tirupati (PartI) (AIR- Rs. 1,28,477.92 per set) & (iv) M/s.HBL Power Systems
Ltd/Hyderabad (Part-I) with the acceptance of COS for a total value of
Rs.3,86,02,061.84 (L/F-N/22) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on the above four firms on the basis of the recommendations of subsequent
tender committee.
The proposal has been examined and the following are the observations:
1.0
Earlier, the proposal was returned with some observations, as the
MPOs were submitted to this office directly without obtaining finance
concurrence. In terms of Railway Board letter No:99/RS(G)/779/5
Dt:12.03.2010, finance concurrence is required for exercising (+) 30%
option clause. When the proposal was returned by this office,(Folio125,124/C), CMM commented that (Folio-123/C) the views expressed
by finance are against the spirit of checks to be made while
exercising option clause. It is nothing but duplication & redundant
activity. However, the stores department has resubmitted the proposal
duly submitting the requisite information.
In subsequent tender committee proceedings, the accepting
authority ie., COS has accepted the tender committee recommendations
(Para 7.0 (L/F-209)), wherein exercising of (+)30% option clause on Last
Purchase orders was not mentioned. It was discussed at Para 3.2.1 to
exercise option clause on LPOs, but not mentioned in the recommendations
at Para 7.0. Further, to exercise option clause, the performance of the firms
should be satisfactory and Delivery Period should also available, these
aspects were not discussed in TC minutes.

The spirit of issuing the Boards letter is perhaps to ensure invoking


option clause duly ensuring economic purchase and adopting all inventory
management methods. Further, the time lack between option available and
exercising the same is in most of the cases for apart. In order to judge the
parameters, such as supply position, demand last but not least rate
analysis is of paramount importance. Hence finance concurrence for
invoking option clause is neither redundant nor duplication of work as
opined by CMM/Elec.

NOTE/102
If Purchase Officer still feels that finance concurrence is not necessary
and is duplication of work for exercising option clause, we may advise to
approach Railway Board for necessary amendments for invoking option
clause.
2.0
It is proposed to exercise (+)30% quantity option clause on the
above four firms, as the rates received in subsequent tender are on
higher side. It is stated that a new tender was opened on 22.07.2013 in
which the lowest Part-I firm quoted Rs.1,28,577.92 per set (L/F-208)
and lowest Part-II firm quoted Rs.1,25,834.32 per set, whereas the
subject POs rates are Rs.1,28,477.92 per set and Rs.1,25,834.32
respectively. As such, the subsequent tender committee has
recommended to exercise (+)30% quantity option clause on the above
four firms (L/F-213) as the rates of the subject POs are cheaper for PartI & same for Part -II.
3.0
It is stated that the performance of the above four firms is
satisfactory as the above four firms have supplied the entire material
with in D.P.
4.0
A photo copy of ANE is available in the case file (L/F-218) for
covering the above option qty. It is stated that the original copy is
placed in the subsequent tender case file which is under scrutiny for
vetting of Draft Purchase Orders by this office.
5.0
The proposal has the Administrative approval of CMM (Folio123/C) for exercising option clause.
6.0
The financial implications of the proposed option clause are as
follows:
1

Original Value of the four POs. (L/F-N/22)

2
3
4
5
6

Original Qty in the 4 POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the POs after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.3,86,02,061.
84
302 sets
90 sets
Nil
90 sets
Rs.1,15,04,863.
60
Rs.5,01,06,915.
44
COS
31.03.2014

7.0

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.

In view of the above, if approved we may concur the proposal to


exercise (+)30% quantity option clause for a quantity of 90 sets.
Submitted please.
Sr.AFA/SF
Dy.CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
20-09-2013

Dt.

Dy.CMM/Elec
Sub : Coverage of Set of 120 Ah VRLA Batteris capacity 6V, 120 Ah
under (+) 30% Option Clause.
Ref : Your Note No:30 to 34 of Case file No.PE.45.12.1396.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 22.07.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage to Railways and as recommended by subsequent tender
committee, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on
(i) M/s.Microtex Energy Pvt Ltd/Bangalore for
a quantity of 13 sets,
(ii) M/s.Exide Industries Ltd/Kolkata for
a quantity of 9 sets
(iii) M/s.Amara Raja Batteries
Ltd/Tirupati for a quantity of 27 sets &
(iv) M/s.HBL Power
Systems Ltd/Hyderabad for a quantity of 41 sets valuing
Rs.
1,15,04,863.60, with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:

1.0
Obtaining the Sanction of original accepting authority, ie., COS.
2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
When the case file was returned duly
finance concurrence, CMM/Elec has commented
expressed by finance are against the spirit
made while exercising option clause. It
duplication & redundant activity.

advising to obtain
that the views
of checks to be
is nothing but

In this connection it is once again reiterated that the spirit of


issuing the Boards letter is perhaps to invoke option clause duly
ensuring economic purchase and adopting all inventory management
methods. Further, the time lag between option clause available and
exercising the same, in most of the cases are far apart.
-2In order to judge the parameters, such as supply position,
demand, last but not the least rate analysis is of paramount
importance. Hence finance concurrence for invoking option clause is
neither redundant nor duplication of work as opined by CMM/Elec.
If Purchase Officer still feels that finance concurrence is not
necessary and is duplication of work for exercising option clause, it is
advised to approach Railway Board for necessary amendments for
invoking option clause.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/1
Sub : Imposing of lower rate on the instant POs, consequent upon
receipt
of lower rates in subsequent tender- Procurement of UTS tickets
100 X 64mm.
.
Ref : Dy.CMM/S&Ts Note No:21 to23 of Case file No.PP/83/13/1508
(UTS tickets).
-oOoA proposal seeking finance concurrence, for imposing lower rate on the
instant POs received from Dy.CMM/S&T, which is placed at Flag A may kindly
be perused.
For procurement of 2,25,000 rolls of UTS tickets of 100 X 64mm size,
two Purchase Orders have been placed on (i) M/s.Rational Business
Corporation Pvt Ltd/Delhi (L/F-287) and on (ii) M/s.Hindon Engg Pvt
Ltd/New Delhi (L/F-279) for a total value of Rs.74,76,750/-, with the
acceptance of CMM/Elec (L/F-N/17) with (+)30% option clause.
Stores branch stated that recently one new tender was opened on
14.08.13, wherein lower rates were received for the subject item. As such, it is
proposed to impose lower rate on M/s.Rational Business Corporation Pvt
Ltd/Delhi only, as the other firm, M/s. Hindon Engg Pvt Ltd/New Delhi
has completed their supplies.
The proposal has been examined and the following are the observations:
1.0
In subsequent new tender, the firm M/s. Rational Business
Corporation Pvt Ltd/Delhi, has quoted Rs.33.09, which is Rs.0.14ps
lower than the instant Purchase Order rates of Rs.33.23. As such, tender
committee has recommended to impose lower rate on M/s. Rational
Business Corporation Pvt Ltd/Delhi as the firm has agreed for the
same. We may agree for the same as the rate is beneficial to Railways.
2.0
On detailed verification of the case file, this office pointed out that
why lower rate or (-)30% option clause was not exercised on the other
firm ie., M/s.Hindon Engg Pvt Ltd/New Delhi. As such, this office
advised stores branch to submit a copy of TC minutes and reasons for
not exercising
(-)30% option clause on the above firm.
3.0
After submission of a copy of TCP of subsequent tender committee
(L/F-328), it is observed that convener stated in the TC minutes that, the
firm has already executed the ordered quantity. As such, (-)30% could
not be operated. But, it is seen from the case file (L/F-312) that the firm

has not yet completed its supplies. Further, it is observed that, after
pointed out by finance, stores branch sent a letter (L/F-313) to the firm
to accept the lower rate or (-)30% option will be imposed. Then the firm
has accepted the lower rate vide their letter placed at L/F-315, by which
Railway is getting savings to a tune of Rs.3780/-.

NOTE/2
In view of the above, if approved we may concur the proposal
of imposing lower rate on both the firms, ie., M/s. Rational
Business Corporation Pvt Ltd/Delhi for a quantity of 40,500 Nos
and on M/s.Hindon Engg Pvt Ltd/New Delhi for a quantity of
27,000 Nos.
As the original TC of the instant tender was finalized with JAG
tender committee with Sr.AFA/SF as finance member, the proposal
requires the concurrence of Sr.AFA/SF.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01
09-2013

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 25-

Dy.CMM/S&T
Sub :- Imposing of lower rate on the instant POs, consequent upon
receipt of lower rates in subsequent tender- Procurement of UTS
tickets
100 X 64mm.
Ref :- Your Note No:21 to23 of Case file No.PP/83/13/1508 (UTS tickets).
-oOoThe proposal received in connection with exercising of (-) 30% Option
Clause on the above subject item Purchase Orders has been examined.
As both the firms have accepted for the lower rate received in
subsequently opened new tender ie., on 14.08.2013, for the subject item,
finance concurrence is hereby signified for exercising (-) 30% Option Clause
immediately duly imposing lower rate of Rs.33.09 on M/s.Rational Business
Corporation Pvt Ltd/Delhi against PO No:91515 dt:25.06.2013 for a quantity
of 40,500 Nos and on M/s.Hindon Engg Pvt Ltd/New Delhi against PO
No.91516 for a quantity of 27,000 Nos..
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie.,

CMM.
2.0

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/103
Sub : Coverage of Air Brake Hose Coupling assembly under (+) 30%
Option Clause.
Ref : Dy.CMM/C&Ws Note No:49 to 51 of Case file No.PW.38.12.1543
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is
placed at Folio-12 /C may kindly be perused.
For procurement of the above subject item four Purchase Orders have
been placed on (i) M/s.Sridhar Rubber & Engg.Products (P) Ltd, Vijayawada
(Part-I)(AIR- Rs.802.25 each) (ii) M/s.Avadh Rubber/Lucknow (Part-I) (AIR- Rs.
802.25 each), (iii) M/s.Indorub Industries/Gurgaon (Part-II) (AIR- Rs. 760.41
each) & (iv) M/s. ASP sealing products Ltd/New Delhi (Part-II) (AIR- Rs. 760.41
each) with the acceptance of COS for a total value of Rs.1,58,57,159.65 (L/FN/29) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above first three firms as the rates received in subsequent new
tender are on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 17.09.2013 in which
the lowest technically suitable Part-I firm quoted Rs.873.00 each (AIR)
(L/F-403) and lowest Part-II firm quoted Rs.802.25 each, whereas the
subject POs rates are
Rs.802.25 each and Rs.760.40 each
respectively. The new tender is not yet finalized. However, as the
Delivery Period of the firm M/s.Avadh Rubber/Lucknow is about to
expire on 30.09.2013, Stores department is proposing to exercise
(+)30% option clause on the above three firms. The firm M/s. ASP
sealing products Ltd/New Delhi has already completed its supplies vide
L/F-351. As there is a rate difference of Rs.71 each, it is financially
advantageous to Railways in exercising quantity option clause on the
above three firms.
2.0

It is stated that the performance of the above three firms is


satisfactory. However, it is learnt that the firm M/s.Sridhar Rubber &
Engg.Products (P) Ltd, Vijayawada has supplied 1500 Nos, (35%),
M/s.Avadh Rubber/Lucknow, has supplied 5600 Nos (60%) &
M/s.Indorub Industries/Gurgaon has supplied 2850 Nos (60%) as on
date.

3.0

Two ANEs are available in the case file (L/F-410, 412) for covering the
above option qty. The proposal has the Administrative approval of
COS (Folio-127/C) for exercising option clause.

NOTE/104
4.0 The financial implications of the proposed option clause are as
follows:
1

Original Value of the four POs. (L/F-N/29)

2
3
4
5
6
7

Original Qty in the 3 POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

5.0

Rs.1,58,57,159.6
5
18327 Nos
5498 Nos
Nil
5498 Nos
Rs.43,51,692.42
Rs.2,02,08,852.0
7
COS
21.10.13/30.09
.13
30.10.13

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.

In view of the financial advantage involved, if approved we may concur


the proposal to exercise (+)30% quantity option clause for a total quantity of
5498 Nos ie., on (i) M/s.Sridhar Rubber & Engg.Products (P) Ltd, Vijayawada
for a quantity of 1292 Nos (ii) M/s.Avadh Rubber/Lucknow for a quantity of
2794 Nos & on (iii) M/s.Indorub Industries/Gurgaon for a quantity of 1412
Nos.
Further, we may advise to reduce the above option quantity in the
subsequent new tender and finalize the same.
Submitted please.
Sr.AFA/SF
Dy.CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
30-09-2013

Dt.

Dy.CMM/C&W
Sub : Coverage of Air Brake Hose Coupling assembly under (+) 30%
Option Clause.
Ref : Your Note No:49 to 51 of Case file No.PW.38.12.1543
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 17.09.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage to Railways, finance concurrence is hereby signified for exercising
(+) 30% Option Clause on (i) M/s.Sridhar Rubber & Engg.Products (P) Ltd,
Vijayawada for a quantity of 1292 Nos (ii) M/s.Avadh Rubber/Lucknow for a
quantity of 2794 Nos & on (iii) M/s.Indorub Industries/Gurgaon for a quantity
of 1412 Nos. valuing Rs.43,51,692.42, with original terms and conditions with
in Delivery Period.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie., COS.

2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
It is further advised that the above option quantity of 5498 Nos may be
reduced in the quantity to be procured in the subsequent new tender, which
was opened on 17.09.2013.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
NOTE/105
Sub : Coverage of Break Beam complete under (+) 30% Option
Clause.
P.O.No:90576 Dt:15.03.2013 M/s.Sushila Engg.Works, Howrah.
Ref : Dy.CMM/C&Ws Note No: 16 to 17 of Case file No.PC.30.12.1494.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is
placed at Folio-130/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s.Sushila Engg.Works, Howrah (AIR- Rs.2049.20 each) with
the acceptance of CMM for a total value of Rs.87,66,477.60 (L/F-N/11) with
(+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:

1.0
It is stated that a new tender was opened on 31.07.2013 in which
the L1 tenderer has quoted Rs.2074.05 Ps each whereas the subject
POs rate is Rs.2049.20 each. The new tender was finalized by tender
committee duly recommending to exercise (+)30% option clause on
the above subject firm (L/F-552). As such, Stores department is
proposing to exercise (+)30% option clause. As there is a rate
difference of Rs.25 each, it is financially advantageous to Railways
in exercising (+)30% quantity option clause on the above firm.
2.0

It is stated that the performance of the firm is satisfactory. However,


it is observed from the list of outstanding purchase orders kept at
L/Folio-541, that the firm has supplied part quantity ie., 1150 Nos as
against the originally ordered quantity of 4278 Nos.

3.0

One vetted short fall ANE is available in the case file (L/F-565) for
covering the above option qty.

4.0

The proposal has the Administrative approval of Dy.CMM (Folio130/C) for exercising option clause.

(PTO)

NOTE/106
5.0

The financial implications of the proposed option clause are as follows:


1

Original Value of the PO. (L/F-534)

2
3
4
5
6

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.87,66,477.6
0
4,278 Nos
1,283Nos
Nil
1,283 Nos
Rs.26,29,123.6
0
Rs.1,13,95,601
.20
CMM
30.11.2013

In view of the financial advantage involved in the proposed option clause, if


approved we may concur the proposal to exercise (+)30% quantity option clause
for a total quantity of 1,283 Nos on M/s.Sushila Engg.Works, Howrah.
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Dy.CAO/S&W.
Submitted please.
Sr.AFA/SF
Dy.CAO/S&W

NOTE/1
Sub : Coverage of Housing for tranction bar under (+) 30% Option
Clause.
P.O.No:29447 Dt:17.12.2012 on M/s.Kharaghpur Metal
Reforming India Pvt.Ltd, Kharagpur.
Ref : Dy.CMM/Elecs Note No: 16 to 17 of Case file No.PA.29.12.5009.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is
placed at Flag A may kindly be perused.

For procurement of the above subject item one Purchase Order has
been placed on M/s.Kharaghpur Metal Reforming India Pvt.Ltd, Kharagpur
(AIR- Rs.30,382.14 per unit) with the acceptance of CMM for a total value of
Rs.40,10,442.48 (L/F-N/11) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 13.08.2013 in which
the L1 tenderer has quoted Rs.64,887.90 each whereas the subject
POs rate is
Rs. 30,382.14 per unit which is more than double to the
instant POs rate. The new tender is not yet finalized, but when the firm
was asked to attend negotiation for rate reduction, the firm refused to
reduce the rate vide their letter placed at L/F-79. As such, Stores
department is proposing to exercise (+)30% option clause on the
instant Purchase Order. As there is a rate difference of Rs.34,506 each,
it is financially advantageous to Railways in exercising (+)30%
quantity option clause for a quantity of 40 Nos on the above firm.
2.0

It is stated that the performance of the firm is satisfactory. It is


further stated that the firm has already supplied the entire ordered
quantity.

3.0

The Delivery Period of the subject PO is expiring on 15.10.2013.


Time and again the Stores department is submitting (+)30% quantity
option clause proposals on the last minute ie., before expiry of DP,
leaving no time to finance for proper scrutiny of the proposal. Though
the subsequent new tender was opened on 13.08.2013, Stores
department has taken two months time to submit the proposal to
Accounts department. As such, once again Stores department should
be advised to comply with the Railway Board guidelines in this regard.
(PTO)

NOTE/2
4.0

One Stock ANE is available in the case file (L/F-81) for covering the
above option qty.

5.0

The proposal has the Administrative approval of CMM (Flag A) for


exercising option clause.

6.0
follows:

The financial implications of the proposed option clause are as

Original Value of the PO. (L/F-69)

2
3
4
5
6

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
40,10,442.48
132 Nos
40 Nos
Nil
40 Nos
Rs.12,15,285.6
0
Rs.52,25,728.0
8
CMM
15.10.2013

In view of the financial advantage involved in the proposed option clause, if


approved we may concur the proposal to exercise (+)30% quantity option clause
for a total quantity of 40 Nos on M/s. Kharaghpur Metal Reforming India Pvt.Ltd.
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Sr.AFA/SF.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Coverage of Rubber Buffer Spring under (+) 30% Option
Clause.
P.O.No:90814 Dt:10.04.2013 on M/s.Tayal and Co/Baddi.
Ref : Dy.CMM/C&Ws Note No: 15 to 16 of Case file No.PC.30.12.2211.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is
placed at Flag A may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. Tayal and Co/Baddi (AIR- Rs.2950 per set) with the
acceptance of CMM for a total value of Rs.70,91,800 (L/F-N/10&11) with
(+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 08.08.2013 in which
the L1 tenderer has quoted Rs.2986.75ps per set. The instant POs rate
is
Rs. 2950/- per set, which is less in rate by Rs.36.75 per set.
The new tender has been dropped duly recommending to exercise
(+)30% option clause in the instant Purchase Order(L/F-198), as the
quantity to be procured is very less after deducting option clause
quantity. As such, Stores department is proposing to exercise (+)30%
option clause on the instant Purchase Order. As there is a rate
difference of Rs.36.75 per set, it is financially advantageous to
Railways in exercising (+)30% quantity option clause for a quantity of
721 sets on the above firm.
2.0

It is stated that the performance of the firm is satisfactory. However,


it is observed from the History sheet placed at L/F-200, that the firm
has not yet commenced its supplies. But, while approving for

exercising option clause, Dy.CMM/C&W stated that the firm has


supplied its first lot quantity of 962 sets.(L/F-201 to 203)
3.0

The Delivery Period of the subject PO is available upto 31.03.2014.

4.0

One Shortfall ANE pertaining to CRS/TPTY, duly vetted by associate


finance, is available in the case file (L/F-197) for covering the above
option qty. However, it is observed that the original consignee in the
subject PO is M&E/LGD, whereas the proposed quantitys consignee is
CRS/TPTY. The firm is charging Rs.10/- towards freight charges from
Himachal Pradesh to LGD in the instant PO conditions. It is not known
whether the firm will agree to supply the material to CRS/TPTY at the
same rate.
(PTO)

NOTE/2
5.0

The proposal has the Administrative approval of Dy.CMM/C&W (Flag


A) for exercising option clause.

6.0
follows:

The financial implications of the proposed option clause are as

1
2
3
4
5
6
7
8
9

Original Value of the PO. (L/F-196)


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs. 70,91,800
2404 sets
721 sets
Nil
721 sets
Rs.21,26,950
Rs.92,18,750
CMM
31.03.2014

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Sr.AFA/SF.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
17-10-2013

Dt.

Dy.CMM/C&W
Sub : Coverage of Break Beam complete under (+) 30% Option
Clause.
P.O.No:90576 Dt:15.03.2013 M/s.Sushila Engg.Works, Howrah.
Ref : Your Note No: 16 to 17 of Case file No.PC.30.12.1494.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 31.07.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase order. In view of the financial
advantage and as recommended by subsequent tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Sushila Engg.Works, Howrah for a quantity of 1283 Nos
valuing
Rs.26,29,123.60, with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1.0
Obtaining the Sanction of original accepting authority, ie., CMM
2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0 Fixing reasonable delivery schedule for the enhanced quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/107
Sub : Coverage of POH kit for 203mm air brake cylinder under (+)
30% Option Clause.
P.O.No:90901 Dt:18.04.2013 on M/s.PEW Engg.Pvt Ltd/Howrah.
Ref : Dy.CMM/C&Ws Note No: 42 to 43 of Case file No.PO.30.13.3582.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is
placed at folio-132/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. PEW Engg.Pvt Ltd/Howrah (AIR- Rs.239.20 per set) with
the acceptance of Dy.CMM/C&W for a total value of Rs.19,73,639.20 (L/FN/35) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 04.06.2013 in which
the L1 tenderer has quoted Rs.241.50 per set. The instant POs rate is
Rs.239.20 per set, which is less in rate by Rs.2.30 per set. The new
tender has been finalized by the tender committee duly recommending
to exercise (+)30% option clause on the instant Purchase Order (L/F300). As such, Stores department is proposing to exercise (+)30%
option clause on the instant Purchase Order. As there is a rate
difference of Rs. 2.30 per set, it is financially advantageous to

Railways in exercising (+)30% quantity option clause for a quantity of


2475 sets on the above firm.
2.0

It is stated that the performance of the firm is satisfactory. However,


it is observed from the History sheet placed at L/F-307, that the firm
has not yet commenced its supplies. When the same was pointed out
by this office, consignee vide his letter placed at L/F-314 stated that
the supplies were satisfactorily completed by the firm.

3.0

The Delivery Period of the subject PO is available upto 18.11.2013.

4.0

One Stock ANE is available in the case file (L/F-317) for covering the
above option qty.

5.0

The proposal has the Administrative approval of Dy.CMM for


exercising option clause on the above firm.
(PTO)

NOTE/108
6.0
follows:

The financial implications of the proposed option clause are as

Original Value of the PO. (L/F-290/291)

2
3
4
5
6
7

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
19,73,639.20
8251 sets
2475 sets
Nil
2475 sets
Rs.5,92,020
Rs.25,65,659.2
0
Dy.CMM
18.11.2013

In view of the financial advantage involved in the proposed option


clause, if approved we may concur the proposal to exercise (+)30% quantity
option clause for a total quantity of 2475 sets on M/s. PEW Engg.Pvt
Ltd/Howrah.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., Dy.CMM. As such, the
proposal requires the concurrence of Sr.AFA/SF.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
21-10-2013
Dy.CMM/C&W
Sub : Coverage of POH kit for 203mm air brake cylinder
under (+) 30% Option Clause.
P.O.No:90901 Dt:18.04.2013 on M/s.PEW Engg.Pvt
Ltd/Howrah.
Ref : Your Note No: 42 to 43 of Case file No.PO.30.13.3582.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 04.06.2013) for the above subject item are on higher side
when compared with the rates of the instant purchase order. In view of
the financial advantage and as recommended by subsequent tender
committee, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s.PEW Engg.Pvt Ltd/Howrah for a quantity of
2475 sets valuing Rs.5,92,020, with original terms and conditions with
in Delivery Period.
The above concurrence is subject to the following:
1.0
Obtaining the Sanction of original accepting authority, ie.,
Dy.CMM
2.0
Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3.0 Fixing reasonable delivery schedule for the enhanced


quantities.
4.0 Ensuring availability of funds during the current financial year.
5.0 Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
28-10-2013

Dt.

Dy.CMM/G
Sub : Procurement of Densified thermal bonded polyster blocks..
under (+) 30% Option Clause (P.O No:90287 Dt:07.02.13 & 90288
Dt:07.02.13) M/s.Durable Polymers/Lucknow & M/s. Savithri
Engg Products, Sirmour.
Ref : Your Note No:30/31 of Case file No. PO.75.12.1209.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 27.09.2013) for the above subject item are on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage involved in instant purchase orders, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s.Durable Polymers/
Lucknow for a quantity of 1705 Nos & on M/s. Savithri Engg Products,
Sirmour for a quantity of 1704 Nos, with original terms and conditions with
in Delivery Period. Out of 4021 Nos of option quantity available in the above
mentioned Purchase orders, 612 Nos already availed on the above two firms

for which finance concurrence was communicated by this office letter of even
no: dated 10.07.2013.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original accepting authority, ie., CMM.

2.0

Ensuring that no lower rates have been received in terms of

para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/109
Sub : Coverage of Set of valve regulated lead acid battery of 1100
Ah capacity under (+) 30% Option Clause.
P.O.Nos:92371 Dt:03.10.12 on M/s.Exide Industries Ltd/Kolkata,
P.O.No.92372 Dt:03.10.12 on M/s.Amara Raja Batteries Ltd/
Tirupati, P.O.No 92373 Dt:03.10.12 on M/s.Microtex Energy Pvt
Ltd/Bangalore.
Ref : Dy.CMM/Elecs Note No: 36 to 37 of Case file No.PE.45.12.1230.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, is placed at
folio-134/C, which may kindly be perused.
For procurement of the above subject item three Purchase Orders have
been placed on (i) M/s.Exide Industries Ltd/Kolkata (ii) M/s.Amara Raja
Batteries Ltd/ Tirupati (AIR- Rs.10,57,296.15 per set) & (iii) M/s.Microtex
Energy Pvt Ltd/ Bangalore (AIR- Rs.10,49,104.94 per set) with the acceptance
of AGM/SC for a total value of Rs.13,29,57,196.18 (L/F-N/30) with (+)30%
option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above three firms as the rates received in subsequent new
tender are on higher side.
The proposal has been examined and the following are the observations:
1.0 It is stated that a new tender was opened on 08.08.2013 in which the
rates received are on higher side ie., Rs.11,37,111.26 &
Rs.11,27,583.25 per set. The instant POs updated rates are
Rs.10,69,921.94 & Rs.10,61,730.73 per set,(L/F-329) which is less in
rate by Rs.67,189.32 per set. The new tender has been finalized by the
SAG tender committee duly recommending to exercise (+)30% option
clause on the instant Purchase Orders (L/F-331). As such, Stores
department is proposing to exercise (+)30% option clause on the
instant Purchase Orders. As there is a rate difference of Rs.67,189.32
per set, it is financially advantageous to Railways in exercising
(+)30% quantity option clause for a quantity of 38 sets on the above
three firms. However, the subsequent tender committee has
recommended only 37 sets to exercise option clause on the instant
purchase orders.
2.0

It is stated that the performance of the firm is satisfactory. However,


it is observed from the History sheet placed at L/F-322, that the firm

M/s.Exide Industries Ltd/Kolkata has supplied only 2 sets out of 56 sets


and the firm M/s.Amara Raja Batteries Ltd/ Tirupati has supplied only 4
sets out of 38 sets originally ordered. The firm M/s.Microtex Energy Pvt
Ltd/ Bangalore has not yet commenced its supplies. But, the Stores
department is certifying that the firms have supplied the quantity
scheduled to be supplied with in DP as ascertained from consignees.
3.0

The Delivery Period of the subject POs is available upto 30.04.2014.


NOTE/110

4.0

One Stock ANE No:13050545 dt:09.05.13 is available in the


subsequent tender case file at Folio-10 for covering the above option
qty.

5.0

The proposal has the Administrative approval of CMM/E for


exercising option clause on the above three firms.

6.0

The financial implications of the proposed option clause are as


follows:

Original Value of the three POs. (L/F-N/30)

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
13,29,57,196.18
126 sets
38 sets
Nil
38 sets
Rs.4,00,95,341.60
Rs.17,30,52,537.78
AGM/SC
30.04.2014

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., AGM/SC. As such, the proposal requires
the concurrence of FA&CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/112
Sub : Coverage of LED signal aspects (SHUNT, ROUTE & CALLING
ON) under (+) 30% Option Clause on M/s.RT Vision
Technologies (P) Ltd/Noida.
Ref : Dy.CMM/S&Ts Note No: 30 to 35 of Case file No.PS.56.12.5168.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject items, received from Dy.CMM/S&T, which is
placed at Folio-138/C may kindly be perused.
For procurement of the above subject item eleven Purchase Orders
have been placed on M/s.RT Vision Technologies (P) Ltd/Noida (All inclusive
Rates of SHUNT- Rs.5,750, Route- Rs.5,750 & Calling On- Rs.6,850 per No.)
with the acceptance of COS for a total value of Rs.2,25,97,150 (L/F-N/22)
with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender of
this Railway and other Railways are on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 10.10.2013 in this
Railway, wherein the L1 tenderer has quoted(L/F-396) Rs.5,880 for
SHUNT, Rs.5,880 for ROUTE and Rs.7,035 for CALLING ON. In other
Railways also the tenderers have quoted higher rates when compared
to the instant POs rates. However, the new tender is not yet finalized.
But, it is stated that the quantity in new tender will be reduced after
exercising this option clause. As such, Stores department is proposing
to exercise (+)30% option clause on the instant Purchase Orders. As
there is a rate difference of Rs.130 on Shunt and Route and Rs.185 on
Calling on, it is financially advantageous to Railways in exercising
(+)30% quantity option clause for a quantity of 1167 Nos on the above
firm as proposed by Stores branch.
2.0

It is stated that the performance of the firm is satisfactory. It is


further stated that the firm has completed its supplies against all the
POs, for which stores branch has submitted inspection certificates
issued by RDSO for the ordered quantity.(L/F-353)

3.0

The Delivery Period of the subject PO is expiring on 08.11.2013.

4.0

Three Stock ANE copies are available in the case file (L/F-370,369,368)
for covering the above option qty. It is learnt that the original copies
were kept in subsequent fresh tender.
(PTO)

NOTE/113
5.0 The proposal has the Administrative approval of CMM (Folio-138/C)
for exercising option clause.
6.0 The financial implications of the proposed option clause are as
follows:
1

Original Value of eleven POs.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
2,25,97,150
3889 Nos
1167 Nos
Nil
1167 Nos
Rs.67,80,650
Rs.2,93,77,800
COS
08.11.2013

In view of the financial advantage involved in the proposed option


clause, if approved we may concur the proposal to exercise (+)30% quantity
option clause for a total quantity of 1167 Nos (Shunt-544Nos, Route-559Nos
& Calling on-64 Nos on M/s. RT Vision Technologies (P) Ltd/Noida.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the proposal
requires the concurrence of FA&CAO/S&W.
Submitted please.
Sr.AFA/SF
Dy.CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
06-11-2013

Dt.

Dy.CMM/S&T
Sub : Coverage of LED signal aspects (SHUNT, ROUTE & CALLING
ON) under (+) 30% Option Clause on M/s.RT Vision
Technologies (P) Ltd/Noida.
Ref : Your Note No: 30 to 35 of Case file No.PS.56.12.5168.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent new tender (ie.,
opened on 10.10.2013) and in other railways tenders, for the above subject
item are on higher side when compared with the rates of the instant purchase
orders. In view of the financial advantage involved in instant purchase orders,
finance concurrence is hereby signified for exercising (+) 30% Option Clause
on
M/s.RT Vision Technologies (P) Ltd/Noida for a total quantity of 1167
Nos (Shunt-544Nos, Route-559Nos & Calling on-64 Nos) with the original
terms and conditions of the Purchase Orders with in Delivery Period. It is
advised that while finalizing the subsequent tender the above mentioned
quantities, aspect wise, may be reduced from the procurable quantity.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original tender accepting authority, ie.,

COS.
2.0

Ensuring that no lower rates have been received in terms of

para 3.3 of

Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.


3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
07-11-2013

Dt.

Dy.CMM/Elec
Sub : Coverage of Railway carriage fan brushless 110 voltsunder
(+) 30% Option Clause on M/s.General auto Electric Corpn,
Mumbai.
Ref : Your Note No: 33 to 34 of Case file No.PE.45.13.1110.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined and the
following are the observations.
1.0
No rate comparison has been made to justify the invoking of
(+)30% option clause on the subject firm. As such, it is advised that the
subject PO rate may be compared with other railway rates for the
subject item, if not available in this railway.
2.0
It may be certified that no lower rates are available in this
railway, other than the subject Purchase Order rate.
3.0
It is noticed from the case file that a new tender for the subject
item has already been uploaded in IREPS with a due date of opening on
22.11.2013. As the DP is available upto 13.12.13, the proposal may be
resubmitted after seeing the trend of the rates obtained in new tender.
4.0
The performance of the firm is certified as Satisfactory. But, it is
observed from NN-85 sheet placed at Folio-287/C that both the firms
have not yet started their supplies.
5.0
The subject item is a stocked item in MFT & LGD depots with
sufficient stocks and the present demand of Non-stock is for revenue
demands. As such, the material to be catered through stock. The
reasons for placing NS indent and procuring the same item under
(+)30% option clause may be furnished.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

No.ASF/Q 01
2013

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 20-11-

Dy.CMM/S&T
Sub: Procurement of LED signal lighting units (Red, Yellow & Green)
M/s.R.T.Vision/Noida
Ref: Your Note No.32 to 34 of case file No.56.13.1177
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent new tender (ie.,
opened on 18.10.2013) of this railway, for the above subject item are on
higher side when compared with the rates of the instant purchase order. In
view of the financial advantage involved in instant purchase order, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.R.T.Vision/Noida for a total quantity of 616 Nos (Green 164Nos, Yellow
203Nos & Red 249 Nos) with the original terms and conditions of the
Purchase Order with in Delivery Period. It is advised that while finalizing the
subsequent tender the above mentioned quantities, may be reduced from the
procurable quantity.
The above concurrence is subject to the following:
1.0

Obtaining the Sanction of original tender accepting authority, ie.,

COS.
2.0

Ensuring that no lower rates have been received in terms of

para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.0

Fixing reasonable delivery schedule for the enhanced quantities.

4.0

Ensuring availability of funds during the current financial year.

5.0

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


(S.THIRUVALLUVAN)
AO/SF
For FA&CAO/S&W

NOTE/114
Sub : Supply of Paint anti corrosive bituminous black under (+) 30%
Option Clause on M/s.P.K.Industries, Jallahandhar city.
Ref : Dy.CMM/Gs Note No: 23 to 27 of Case file No.PO.77.12.1168.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed
at Folio-141/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on (i) M/s.P.K.Industries, Jallahandhar city & (ii) M/s.Pushker Paint
Industries (All inclusive Rate Rs.75.26 & Rs.76.51per Ltr) with the acceptance
of CMM for a total value of Rs.93,92,369.30 (L/F-N/18) with (+)30% option
clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the firm M/s.P.K.Industries, as the rates received in subsequent
new tender of this Railway are on higher side.
The proposal has been examined and the following are the observations:
1.0
Earlier, the proposal was returned with some observations vide
folio-140/c (ante), which may kindly be perused. The Delivery Period of
the subject Purchase Order has already been expired on 31.10.2013.
In response to finance observations, the stores department has
resubmitted the proposal on 12.11.2013.
2.0
It is stated that a new tender was opened on 07.07.2013 in this
Railway, wherein the TC of the subsequent tender recommended to
exercise (+)30% option clause in the instant Purchase Order (L/F-373)
as the rates received in fresh tender are on higher side. As such, Stores
department is proposing to exercise (+)30% option clause on the
instant Purchase Order. As there is a rate difference of Rs.3.49 to
Rs.4.74 per litre, it is financially advantageous to Railways in
exercising (+)30% quantity option clause for a quantity of 22,205 ltrs
on the above firm as proposed by Stores branch.
3.0
As the other firm M/s.Pushker Paint Industries had refused to
accept (+)30% option clause at the tender finalization stage itself, the
accepting authority accepted for the same. Hence, option clause is not
being exercised on this firm.

4.0

It is stated that the performance of the firm is satisfactory. It is


further stated that the firm has already supplied the first lot quantity
for which the replies received from the depots are placed at L/F-382 &
383.
(PTO)

NOTE/115
5.0

The Delivery Period of the subject PO has already expired on


31.10.2013. As per Railway Board guidelines, (+)30% option
clause should be exercised with in the original/extended delivery
period.

6.0

A copy of the Stock ANE is placed in the case file (L/F-385) for
covering the above option qty.

7.0

The proposal has the Administrative approval of CMM (Folio140/C) for exercising option clause.

8.0
follows:

The financial implications of the proposed option clause are as


1

Original Value of the two POs.

2
3
4
5
6

Original Qty in the instant PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the POs after exercising (+)


30% option clause
Competency of Sanction required
Delivery period available upto

8
9
9.0

Rs.
93,92,369.30
74015 Ltrs
22,205 ltrs
Nil
22,205 ltrs
Rs.16,90,796.0
6
Rs.1,10,83,165
.36
CMM
31.10.2013

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As
such, the proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the proposed
option clause, we may agree for the proposed option clause
proposal. But, to exercise option clause, DP should be available,
which has already been expired in the present case. The
subsequent tender committee also recommended and finalized
the TC.
In view of the above, orders are solicited whether to concur
the proposal.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01
2013

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 18-11-

Dy.CMM/G
Sub: Procurement of Vinyl coated upholstery fabric by exercising
(+)30%
option clause on M/s.Milton Industries Ltd/Ahmedabad.
Ref: Your Note No.13 to 17 of case file No.PO.75.12.1223.
-oOoThe proposal resubmitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been examined.
In addition to the instant Purchase order No:90527 dt:13.03.2013, there
are two more purchase orders bearing No:57005 (F-192) & 70050 (F-191)
Dt:13.03.2013 were placed on the same firm ie., M/s.Milton Industries
Ltd/Ahmedabad with same all inclusive rate. But, the same was not brought
out in the minutes of the subsequent tender committee as well as in (+)30%
option clause proposal. The reasons for not mentioning the last purchase
orders in the subsequent TC minutes and (+)30% option clause on those POs
may be furnished. It is the duty of the Convener to bring out to the notice of
other members of the tender committee when rate advantage is involved.
Henceforth, it is advised that all (+) option clause proposals may be
submitted duly mentioning all the purchase orders with all inclusive rates
placed in the same tender for the respective items.

Further, the proposal is resubmitted on expiry of the DP ie., on


12.11.2013 (DP expired on 31.10.2013). As per rules in vogue, the (+)30%
option clause proposals should be processed and concurred with in the
validity of original/extended DP.
The proposal is returned herewith.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 03-12-2013

No.ASF/Q 01
Dy.CMM/C&W

Sub: Procurement of Adapter by exercising (+)30% option clause.


Ref: Your Note No.26 to 28 of case file No.PW.38.13.2181.
-oOoThe proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders has been examined and the following are the
observations.
1.0

In terms of para 3.3 of Railway Board letter No: No:99/RS(G)/779/5 Dt:12.03.2010,


option clause can be operated only where there is a clear demand for additional
quantities and benefits accrue to Railways in terms of existing contractual rates
being reasonable/lower than newly opened tender rates. It is observed from the
proposal that no such exercise has been made to prove that the existing rates are
reasonable. As such, it is advised that latest rates obtained in neighboring Railways,
if not available in this Railway, may be compared to justify the rate reasonability.

2.0

Further, it is proposed to exercise option clause on both the firms at the ratio of
15:85 (Development order vs Regular order) which seems to be not correct. It is
prudent to utilize the full quantity available with M/s.Kalimata Ispat Industries Pvt
Ltd under (+)30% quantity as the all inclusive rate of the firm is lower when
compared to other firm. Railways will loose Rs.17,313.75 by operating quantity
option clause in the ratio of 15:85 as proposed by your office.

3.0

In terms of Para 3.4 of Railway Board letter No: 99/RS(G)/779/5 Dt:12.03.10, for
exercising (+)30% option clause, the performance of the firm should be satisfactory,
which is not certified by your office. As such, it is advised that latest SPS may be
called for from the depots and resubmit the proposal duly certifying the
performance of both of the firms. The performance of the firms needs to be
improved to invoke option clause on these two firms.

4.0

The proposals received without complying with Railway Board orders is distressing
to finance department.
The proposal is returned herewith.

Encl : The concerned file.


(A.K.GANESHAN)

Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Supply of V.Deep 6 grooved Axle Pulley under (+) 30% Option
Clause on M/s.Stone India Ltd/Kolkata.
Ref : Dy.CMM/Elecs Note No: 22 of Case file No.PE-45-12-1264.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is
placed at Folio-1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on (i) M/s.Stone India Ltd/Kolkata & (ii) M/s.HMTD Engg Pvt
Ltd/Navi Mumbai (All inclusive Rate Rs.22,929.17 per No) with the
acceptance of CMM for a total value of Rs. 42,41,896.45 (L/F-N/14) with
(+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the firm M/s. Stone India Ltd/Kolkata , as the rates received in
subsequent new tender of this Railway are on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 08.10.2013 in this
Railway, wherein the TC of the subsequent tender, recommended to
exercise (+)30% option clause in the instant Purchase Order (L/F-163
ante para 8.1) as the rates received in fresh tender are on higher side.
As such, Stores department is proposing to exercise (+)30% option
clause on the instant Purchase Order. As there is a rate difference of
Rs.970.93 per No., it is financially advantageous to Railways in
exercising (+)30% quantity option clause for a quantity of 34 nos on
the above firm as proposed by Stores branch.
2.0
As the other firm M/s.HMTD Engg Pvt Ltd/Kolkata is delisted by
RDSO, as stated by stores department, at Note-22 of link file, option
clause is not being exercised on this firm.

3.0

It is stated that the performance of the firm is satisfactory. It is


further stated that the firm has already supplied the entire quantity
within the due date as placed at L/F-160.

4.0

The Delivery Period of the subject PO is available upto 31.03.2014.

5.0

It is stated that the Original Stock ANE is placed in the subsequent


tender case file which is under Finance vetting.

NOTE/2
6.0

The proposal has the Administrative approval of Dy.CMM/E (Folio-1/C)


for exercising option clause. Further CMM/E has already accepted the
subsequent tender Committee recommendations(L/F-162).

7.0

The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

8.0
in

Original Value of the two POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs. 42,41,896.45
111 Nos
34 Nos
Nil
34 Nos
Rs.7,79,591.78
Rs.50,21,488.23
CMM
31.03.2014

With the exercise of above option clause, the revised value will be with
the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the proposed option
clause, if approved, we may agree for the proposed option clause
proposal.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

No.ASF/Q 01

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 11-12-2013

Dy.CMM/Elec
Sub: Procurement of Un insulated cadmium copper caternary wire by exercising
(+)30% option clause.
Ref: Your Note No.32 of case file No.46-13-1003.
-oOoThe proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders has been examined and the following are the
observations.
1.0In terms of para 3.3 of Railway Board letter No: No:99/RS(G)/779/5 Dt:12.03.2010,
option clause can be operated only where there is a clear demand for additional
quantities and benefits accrue to Railways in terms of existing contractual rates being
reasonable/lower than newly opened tender rates. It is observed from the proposal that
no such exercise has been made to prove that the existing rates are reasonable. As
such, it is advised that latest rates obtained in neighboring Railways, if not available in
this Railway, may be compared to justify the rate reasonability.However, it is seen from
the case file that one fresh tender is floated for the subject item with due date on
29.11.2013. The rates/tabulation statement in the fresh tender obtained may be
furnished.

2.0In terms of Para 3.4 of Railway Board letter No: 99/RS(G)/779/5 Dt:12.03.10, for
exercising(+)30% option clause, the performance of the firm should be satisfactory.
The supplies made by the firm M/s.Hyvolt Electricals/Delhi as on date may be
furnished.
3.0Funds certification from the concerned executives on the NS indents placed at F-6 & F27 may be obtained.
The proposal is returned herewith.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

NOTE-116
Sub : Procurement of Vinyl coated upholstery Fabric for Non-AC coach.
Exercising of (+) 30% Option Clause on M/s.Milton Industries
Ltd/Ahmedabad.
Ref : Dy.CMM/Gs Note No:13 to 18 of Case file No. PE-75.12.1223.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed
at F-146/C may kindly be perused.
For procurement of the above subject item three Purchase Orders have
been placed on M/s. Milton Industries Ltd/Ahmedabad(AIR-Rs.94.20 per
metre) with the acceptance of COS for a total value of Rs.2,15,20,461(L/FN/10).

Now, it is proposed to exercise (+)30% quantity option clause on the


above firm as the demand is available.
The proposal has been examined and the following are the observations:
1.

Earlier, the proposal was returned with some observations vide


letter placed at F-145 & 147, duly stating that in addition to the instant
Purchase order there are two more purchase orders placed on the
same firm ie. M/s. Milton Industries Ltd/Ahmedabad with same all
inclusive rate. But the same was not brought out in the minutes of the
subsequent tender committee as well as in (+30%) option clause
proposal.
In response to this office observations, stores department has
resubmitted the proposal,duly stating(F-149) that erroneously qty for
+30% option clause was calculated as per the stock PO instead of total
quantity of the contract accepted. Due to oversight +30% option
clause qty has been taken as 64,066 Mtrs only instead of 68,536 Mtrs.
Further it is stated that ANE copy is kept in the Orginal Case file
of subsequent tender, which is under signature of Accounts Member
(T.C.P).

2.

It is stated that a new tender was opened on 27.08..2013 in this


Railway, wherein the TC of the subsequent tender, recommended to
exercise (+)30% option clause in the instant Purchase Order as the
rates received in fresh tender are on higher side(L/F-212 Para 2.3). As
such, Stores department is proposing to exercise (+)30% option clause
on the instant Purchase Order. As there is a rate difference of Rs.0.70
per Metre., it is financially advantageous to Railways in exercising
(+)30% quantity option clause for a quantity of 68,536Mtrs on the
above firm as proposed by Stores branch.

3.

It is stated that the performance of the firm is satisfactory. It is


further stated that the firm has already supplied the entire quantity
within the due date as certified by Dy.CMM/CRS/TPTY & LGD(L/F-230231).

4.

The Delivery Period of the subject PO is expired on 31.10.201.


However,the stores Department has already advised the firm that
+30% option clause is being operated in the instant purchase order as
per the terms and condition of the original P.O(L/F-203).

5.

The proposal has the Administrative approval of COS (F146/C)for exercising option clause.

The financial implications of the proposed option clause are as follows:


1

Original Value of the three POs.

2
3
4

Original Qty in the instant PO.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8
9

Total Value of the POs after


exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto
7.

Rs.
2,15,20,461.00
2,28,455Mtrs
68,536Mtrs
Nil
68,536Mtrs
Rs.64,56,090.0
0
Rs.2,79,76,552.
00
COS
31.10.2013

With the exercise of above option clause, the


revised value will be with in the powers of original
accepting authority ie., COS. As such, the proposal
requires the concurrence of FA&CAO/S&W.

In view of the financial advantage involved in the


proposed option clause, and as recommended by subsequent
tender Committee we may agree for the proposed option clause
proposal subject to reduction of 68,536Mtrs quantity in the
subsequent tender instead of 64,066 Mtrs.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Sub : Coverage of Railway Carriage Fan brushless 110 Volts.under


(+) 30% Option Clause on M/s. Western Electric & Trading
Co./Delhi(P.O No:91625 Dt: 03.07.13)
Ref : Dy.CMM/Elecs Note No:35-36 of Case file No. PE.45.13.1110.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is
placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on M/s. Western Electric & Trading Co/Delhi(AIR-Rs.3333.75 per
No) and M/s.General Auto Electric Corpn/Mumbai(AIR-Rs.3333.75 per No)
with the acceptance of COS for a total value of Rs.3,86,34,828.75(L/F-N/30).
Now, it is proposed to exercise (+)30% quantity option clause on M/S.
Western Electric & Trading Co/Delh. TC does not recommend on M/s. General
auto Electric Corpn/Mumbai as the performance of the firm is poor.
The proposal has been examined and the following are the
observations:
1.0 Subsequent tender was opened on 21.03.14 for the subject item. The All
inclusive rate accepted in the new tender is Rs. 3590/- per number as against
present PO rate i.e 3333.75. Hence it is proposed to operate (+)30% option
clause.
2.0 Performance of the firm is certified as satisfactory. Howerver, it is observed
from stock position slip(L/F.335) that the frim has supplied 8500 Nos out of
9851 Nos i.e suuplied 86% and for the balance eDP is much ahead(31.07.14).
3.0 Necessary ANE is available in the case file to cover the proposed option
clause.
4.0 CMM admin approval was obtained to operate option clause.
5.0 The financial implications of the proposed option clause are as follows:
1
Original Value of the PO.
Rs.
3,86,34,828.75
2
Original Qty in the PO.
9851 Nos
3
(+) 30% option quantity
2956Nos
4
Qty already utilized under option
Nil
clause

5
6
7

8
9

Now proposed qty under option


clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
(including already option clause
exercised POs)
Competency of Sanction required
Delivery period available upto

2956 Nos
Rs.98,54,565
Rs.4,84,89,393.
75
COS
31-07-2014

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the proposal
requires the concurrence of FA&CAO/S&W and sanction of COS.
In view of the financial advantage involved in the present option
clause, if approved we may concur the proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
30.12.2013

Dt.

Dy.CMM/DSL
Sub : Procurement of Set consisting of two outer tubes & two inner tubes &
reinforcing spring Exercising of (+) 30% Option Clause.
Ref : Your Note No:12 of Case file No. 10.13.2975.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
In view of the financial advantage to Railways, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.Rama Engineering
Works/Hyderabad a quantity of 1497 nos. with original terms and conditions
with in Delivery Period.
The above concurrence is subject to the following:

(i)
(ii)

Obtaining the Sanction of CMM.


Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)
(iv)
(v)
(vi)

Fixing reasonable delivery schedule for the enhanced quantity.


Ensuring availability of funds during the current financial year
Getting the MPOs vetted by Stores Finance section.
It is advised that the above option quantity of 1497 Nos may be reduced in

the
quantity to be procured in the subsequent new tender
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
02.01.2014

Dt.

Dy.CMM/Elec
Sub : Coverage of Railway carriage fan brushless 110 voltsunder
(+) 30% Option Clause on M/s.Western Electric and Tranding Co/Delhi.
Ref : Your Note No: 33 to 36 of Case file No.PE.45.13.1110.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause on the above
subject item has been examined and the following are the observations.

1.0 As the quantity required under NS indent is only 250 Nos, it may be adjusted from the stock
available, i.e 2320 nos as per SPS placed at F-292. Since the DP is far ahead, it would be prudent
to watch the market and appropriate action taken accordingly.
Further there is a cut in the budget provision under WMS recently,the
requirement needs to be reassessed and a certificate from CWM may be placed on
the file duly providing necessary funds now duly vetted by associated finance.
Encl: The concerned file
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
16.01.2014
Dy.CMM/Elec
Sub : Supply of V.Deep 6 grooved Axle Pulley under (+) 30% Option
Clause
on M/s.Stone India Ltd/Kolkata.
Ref : Dy.CMM/Elecs Note No: 22 of Case file No.PE-45-12-1264.

Dt.

-oOo-

The proposal received in connection with exercising of (+) 30% Option


Clause on the above subject item has been examined.
In view of Revised Budget Grant advised by board(cut in the budget provision
under General Stores),the requirement needs to be re-assessed and a certificate
from the executive department may be placed on the file.
This issues with the approval of Dy.FA&CAO/S&W
Encl: The concerned file
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
2014

Dt. 17-01-

Dy.CMM/G
Sub : Vinyl Coated upholstery Fabric for (NON-AC coach under (+) 30%
Option Clause on M/s.Milton Industries ltd/Ahmedabad.
Ref : Your Note No: 13 to 20 of Case file No.PE.75.12.1223.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent new tender (ie., opened
on 27.08.2013), for the above subject item are on higher side when compared with
the rates of the instant purchase orders. In view of the financial advantage
involved in instant purchase orders, Post-facto Finance concurrence is hereby
signified for exercising (+) 30% Option Clause on
M/s.Milton Industries
Ltd/Ahmedabad for a total quantity of 68,536Mtrs with the original terms and
conditions of the Purchase Orders with in Delivery Period. It is advised that while
finalizing the subsequent tender the above mentioned quantities, aspect wise, may
be reduced from the procurable quantity.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original tender accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
N-

Sub : Metal Cutting gas(LPG) for metal cutting Gas brazing under (+) 30%
Option Clause on M/s. BPCL/East Mumbai P.O No:92421 Dt:09.10.12)
& on M/s. Mahalaxmi LPG centre/SC P.O.No.92422 Dt:09.10.12.
Ref : Dy.CMM/Gs Note No:16 to 22 of Case file No. PO.81.12.1399.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/G, which is placed at Folio- 3/C
may kindly be perused.
For procurement of the above subject item two Purchase Orders have been
placed on M/s. BPCL/East Mumbai(AIR-Rs.110 Per Kg) and M/s.Mahalaxmi LPG
centre/SC(AIR-Rs.110 per Kg) with the acceptance of CMM for a total value of
Rs.1,66,75,010(L/F-N/13).
Now, it is proposed to exercise (+)30% quantity option clause on the above
two firms as the demand are available.
The proposal has been examined and the following are the observations:
1.0 The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
06.08.2013 for the subject item. The All inclusive rate accepted in the new
tender is Rs.112 per Kg(AIR). As the rates of instant POs are lower than the
subsequent tender and financially beneficial to Railways, JAG tender committee
has recommended to invoke (+)30% option clause (L/F-80) on the instant
POs(26287 Kgs on BPCL/East Mumbai and 11693 on Mahalaxmi LPG
Centre/SC)for a total quantity of 37980 Kgs.
2.0
It is certified by the stores department that the performance of the firm is
satisfactory. However, M/s. Mahalaxmi LPG centre/Sc supplied only 8935.8
out of 38975 Kgs Balance still due to supply-30039.2, M/s BPCL/East
Mumbai supplied 11400 Kgs out of 12882 Kgs and 36400 Kgs out of 74741 KgsBalance still to supply-39823.Due date os supply is 31.03.2014.
3.0 Necessary ANE is available (L/F-85) in the case file to cover the proposed
option quantity.
4.0

DP is available upto 31.03.2014.

5.0

The financial implications of the proposed option clause are as follows:

Original Value of the POs.

Original Qty in the POs.

3
4

(+) 30% option quantity


Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the PO after exercising
(+) 30% option clause
Competency of Sanction required

5
6
7
8

Rs.1,66,75,01
0.
87623+38975
kg
37980 Kg
Nil
37980 Kg
Rs.41,77,800
Rs.2,08,52,81
0
COS

6.0 With the exercise


of
above
option
clause, the revised
value will exceed the powers of orginal accepting authority i.e CMM. As such,
the proposal requires sanction of COS with the councurrence of FA&CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF

Sr.AFA/(SF)

NOTE/1
Sub :- Procurement of M S Flats Steel, Exercising of (-)30% option clause.
P.O.No:90.12.1156.1.90953.
Ref :- Dy.CMM/Gs Note No. 32 to 34 of Case file No:PB.90.12.1156.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/G, is placed at Folio-1/C which
may kindly be perused.
One Purchase Order has been placed for procurement of the above subject
item on M/s.The Sun Rolling Mills Pvt Ltd/Howrah(L/F-370) for a quantity of
199Mts at a total value of Rs..94,51,976.63 with the acceptance of CMM/G (L/FN/28).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
90953 Dt: 26.04.13 for a quantity of 59.7 Mts.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
22.11.2013, from lowest technically suitable offer is Rs.46,200 per Mts
(L/F-1390), whereas the instant PO rate is Rs.47,497.37 per Mt (L/F-N-28).

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.46,200 per mts, but the firm refused to accept the offer.
As such, it is proposed to cancel 59.7 Mts duly exercising (-)30% option
clause on the firm.

(iii)

As the original tender was finalized with Sr.Scale Officer


tender
committee and accepted by CMM, the above proposal requires the
concurrence of Sr.AFA for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-1).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
31.01.2014

Dt.

Dy.CMM/G
Sub :- Procurement of M S Flats Steel, Exercising of (-)30% option clause.
P.O.No:90953 dated 26.04.2013.
M/s. The Sun Rolling Mills Pvt Ltd/Hwh.
Ref :- Your Note No. 32 to 34 of Case file No:PB.90.12.1156.
-oOoThe proposal received in connection with exercising of (-) 30% Option Clause
on the above subject item Purchase Order has been examined.

As the firm has not accepted for the lower rate received in subsequently
opened tender on 22.11.2013 for the subject item, finance concurrence is hereby
signified for exercising (-) 30% Option Clause on M/s. The Sun Rolling Mills Pvt
Ltd/Howrah against PO No:90953 dt:26.04.2013 for a quantity of 59.7 Mts.
The above concurrence is subject to the following:
1.0
2.0
3.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Getting the MPOs vetted by Stores Finance section.
It may be ensured that the present tender on hand should not be

finalized with
the rate higher than the subject PO rate.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For
FA&CAO/S&W

NOTE/1
Sub : Procurement of Densified thermal bonded polyster blocks DTBP
for SCN coaches - Exercising of (+) 30% quantity Option Clause.
Ref : Dy.CMM/G Note No:33 to 36 of Case file No. PO.75.13.5018.
-oOo-

A proposal seeking finance concurrence for operating (+) 30% option


clause on the above subject item, received from Dy.CMM/G, which is placed
at Folio-1 may kindly be perused.
For procurement of the above subject item One Purchase Order has
been placed on M/s. Savithri Engg Products,Sirmour at an all inclusive
rate of Rs.880 per No and at a total value of Rs. 86,87,360 with the
acceptance of CMM/G (L/F-N/21).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available for the subject item.
1 Stores branch stated that a new tender has been opened on
27.09.2013, in which higher rates (Rs.968.60 per No-L/F-198) were
received for the subject item. The tender is under finalization with JAG
tender committee. In view of the financial advantage when compared
with the new tender rates, the proposal is being initiated to exercise
option clause on the above firm for a quantity of 1882 Nos as against
the option quantity (2962 Nos) available in the PO. Earlier, for a
quantity of 1080 Nos option clause was exercised on the same firm, for
which finance concurrence was also signified by this office with the
approval of Sr.AFA/SF (L/F-183), which may kindly be perused.
2 Necessary ANE (L/F-195 & 196) is available in the case file to cover the
proposed option quantity.
3 The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6
7
8
9

Original Value of the PO.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the PO after
exercising (+) 30% option
clause(incl. part qty1080)
Competency of Sanction required
Delivery period expired on

Rs.86,87,360
9872 Nos
2962 Nos
1080 Nos
1882 Nos
Rs.16,56,160.00
Rs.1,12,93,920.0
0
COS
12.11.2013

NOTE/
4 It is certified by the stores department that the performance
of the firm is satisfactory. The firm has supplied the first
installment quantity.
5 The original DP of the firm expired on 12.11.2013. Further
stores branch Dy.CMM/G stated that firm has already been
advised, +30% option clause before the expiry of Orginal
Delivery date i..e on 11.11.2013(L/F-F-193) and in future the
option clause will be exercised well in advance.
6 With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie.,
CMM. As such, the proposal requires the post facto
concurrence of Dy.CAO/S&W.
7 The proposal has the Administrative approval of CMM (L/F-N34) for exercising option clause.
In view of the financial advantage involved, if approved we
may concur the proposal.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 10.02.2014
Dy.CMM/G
Sub : Procurement of Densified thermal bonded polyster
blocks(DTBP) for
SCN coaches Exercising of (+) 30% Option
Clause.P.O.No:57031
Dt:23.07.2013
Ref : Your Note No:36 of Case file No. PO.75-13-5018.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 27.09.2013) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.968.60, whereas the instant
Purchase Order rate is Rs.880/-. In view of the financial advantage and as
recommended by JAG tender committee, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s.Savithri Engg
Products,Sirmour for a quantity of 1,882 Nos with original terms and
conditions with in Delivery Period.
The above concurrence is subject to the following:
(vi)

Obtaining the Sanction of original accepting authority, ie.,

CMM.

(ii)

Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(vii)

Ensuring availability of funds during the current financial

year.
(viii)

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of Dy.FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

N-3
In continuation to the above section notings at N-1 & 2, Dy.CMM/Genl has
resubmitted the proposal( L/F-N-23 &24), in response to this office observations
made vide (L/F- N-22 & 23) which may kindly be perused.
It is stated by Dy.CMM/Genl that original Delivery Date is upto 31.03.2014,
and supply postion as given by depots are satisfactory. However firms will be
advised to improve supplies.
Review of Quantity has already been done in the subsequent tender, as per
TCP at (L/F-F-82) duly taking 37980 Kg being proposed for coverage under +30%
option clause and the same has been accepted by competent authority at (L/F-F79). Further stated that Delivery period will be given as 30.06.2014 with payment
after 01.04.2014.
Submitted for kind perusal and order please.

A proposal seeking Finance concurrence for entering into Rate contract for a
further period of One Year with OEMS of HP, Samsung & Epson for supply of
catridge and Tonners on single tender basis received from CMM/E is placed at F-4.
Previously RC was entered into for one year on single tender basis with the
approval of AGM(L/F-1-6). Zonal RC for HP printers is due to expire on 05.05.2014.
However, it is proposed to enter into fresh rate contract with OEMS for supply of
catridges and Toners for HP printers and also for Samsung, Epson makes, as
and when current RCs expire to avail supplies directly from OEMs for better quality
of supplies, price advantage and expeditious coverage of demands.
The proposal has been examined and the following are the observations:
1. The validity of HP zonal RC is expiring on 05.05.2014. However executive
proposing for extension much earlier i.e.3 months in advance.
2. Further, the validity of other two OEMs are expiring on 07.11.2014 &
01.12.2014. Extension of Rc on these two firms is also premature. It is not
correct to extend at an earlier date.
3. Earlier, while concurring the same proposal, FA&CAO/S&W has clearly
mentioned that based on our experience the contract can be extended
vide (Note8(L/F)) for which executive has not submitted the
performance of the firms.
4. We may advise the stores department to submit the details of supplies
made by the HP and its performance from the consignees.
In view of the above, if approved we may return the proposal with the above
observations.
Submitted for kind perusal and order please.
SSO(A)/SF

Sr.AFA/SF

NOTE/1
Sub : Procurement of 490 HP Diesel Engine conforming to RDSOExercising of (+) 30% quantity Option Clause.
Ref : Dy.CMM/Elecs Note No:27 to 28 of Case file No. PE.45.12.5079
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/Elec, which is placed at Folio-1/c
may kindly be perused.
For procurement of the above subject item Three Purchase Orders have been
placed on M/s. Srinivasa Sales & Services P Ltd/BZA (AIR-Rs.20,58,940.30
each)with the acceptance of CMM for a total value of Rs.61,76,820.90 (L/F-N/21).
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on the above firm as the demands are available for the subject item.
The proposal has been examined and the following are the observations:
1.0 The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
29.11.2013 for the subject item. The All inclusive rate quoted by lowest
tenderer in the new tender is Rs.24,45,000 per unit for which TC Recommended
to go for one round of negotiations. As the rates of instant POs are lower than
the subsequent tender and financially beneficial to Railways, JAG tender
committee has recommended to invoke (+)30% option clause (L/F-183) on the
instant PO(1 No on M/s. Srinivasa Sales & Services P Ltd/BZA.
2.0
It is certified by the stores department that the performance of the firm is
satisfactory.(L/F.191).
3.0 Necessary ANE is available (L/F-192) in the case file to cover the proposed
option quantity.
4.0

DP is available upto 20.02.2014.

5.0

The financial implications of the proposed option clause are as follows:

Original Value of the POs.

2
3

Original Qty in the POs.


(+) 30% option quantity

Qty already utilized under option


clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8

Total Value of the PO after exercising


(+) 30% option clause
Competency of Sanction required

Rs.61,76,820.
90.
3Nos
1 No
Nil
1 No
Rs.20,58,940.
30
Rs.82,35,762
CMM

N/2

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Sr.AFA/SF and sanction of CMM.
In view of the financial advantage involved in the present option clause, if
approved we may concur the proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
10.02.2014

Dt.

Dy.CMM/G
Sub: Supply of V deep 6 grooved Axle Pulley under (+)30% option clause on
M/s.Stone India Ltd/Kolkata.
Ref: Your Note No.22,23 of case file No.PE.45.12.1264.
-oOoThe proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders has been examined and the following are the
observations.

During the Financial year 2013-14, Railway Board has curtailed the purchase
grant drastically. It is also learnt that the financial restrictions will continue to
remain even in the year 2014-15.
The annual estimated requirements AAC( Average Annual Consumption) of
various items of SCR are not in proportion with the budget available for each of

the user departments. As such action may be taken to review the annual
estimated requirements of all the items duly considering the availability of
funds in addition to the inventories available in stores depots as well as on
shops.

FINANCIAL

No.ASF/Q 01
18.02.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/Elec
Sub : Procurement of 490 HP Diesel engine Exercising of (+) 30% Option
Clause.
Ref : Your Note No:27,28 of Case file No. PE.45-12-5079.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.

It is observed that the rates received in subsequent tender (ie., opened on


29.11.2013) for the above subject item are on higher side. The rate quoted from
lowest offer is Rs.24,45,000, whereas the instant Purchase Order rate is
Rs.20,58,940.30/-. In view of the financial advantage, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.Srinivasa sales &
service P ltd/BZA for a quantity of 1 No with original terms and conditions with
in Delivery Period.
The above concurrence is subject to the following:
(ix)
(ii)

Obtaining the Sanction of original accepting authority, ie., CMM.

Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(x) Ensuring availability of funds during the current financial year.


(xi)

Getting the MPOs vetted by Stores Finance section after conducting

negotiation for the present tender on hand and also the rates obtained are
reasonable and advantageous to railway.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Procurement of Control Rod Exercising of (+) 30% quantity
Option Clause.
Ref : Dy.CMM/C&Ws Note No:14 of Case file No. 38.12.1485.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/C&W, which is placed at Folio-1/c
may kindly be perused.
For procurement of the above subject item one Purchase Order has been
placed on M/s. General Stores and Engg Co Pvt Ltd/Kolkata(AIR-Rs.885.76

each No)with the acceptance of CMM for a total value of Rs.59,85,966.08 (L/FN/11).
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on the above firm as the demand available for the subject item.
The proposal has been examined and the following are the observations:
1.0 The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
31.12.2013 for the subject item. The All inclusive rate accepted in the new
tender is Rs.920.23 per No(AIR). As the rates of instant PO is lower than the
subsequent tender and financially beneficial to Railways, Sr. scale tender
committee has recommended to invoke (+)30% option clause quantity (L/F-111)
on the instant PO for a total quantity of 2027 Nos, which was accepted by CMM.
2.0
It is certified by the stores department that the performance of the firm is
satisfactory and 75% of the supply has been made(Placed at L/F-.
3.0

The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7

Original Value of the PO.


Rs.59,85,966.08.
Original Qty in the POs.
6758 Nos
(+) 30% option quantity
2027 Nos
Qty already utilized under option clause
Nil
Now proposed qty under option clause
2027 Nos
Value of the proposed option Qty
Rs.17,95,446
Total Value of the PO after exercising (+) Rs.77,81,402
30% option clause
8
Competency of Sanction required
COS
4.0
9
DP available upto
31.03.2014
Necessary ANE is available (L/F-121) in the case file to cover the proposed option
quantity.
5.0 In view of the financial advantage, if approved we may concur the above
proposal.
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires
the concurrence of Sr.AFA/SF.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub : Procurement of Lock for CBC- Exercising of (+) 30% quantity
Option Clause.
Ref : Dy.CMM/C&Ws Note No:22 to 23 of Case file No. 38.13.1205.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/C&W, which is placed at Folio-1/c
may kindly be perused.
For procurement of the above subject item two Purchase Orders have been
placed on M/s. Atul Engineering Udyog Agra & on M/s.Rine Engg Pvt
Ltd/Baddi (AIR- Rs.1799.61 per No.) with the acceptance of CMM for a total
value of Rs.1,23,93,914.07 (L/F-N/18).
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on M/s. Atul Engineering Udyog Agra (Part -II) as in the subsequent
tender opened on 19.12.2013 from Part II approved firm lower rates were
received i.e. Rs.1500/-(AIR) Placed at L/F-F.294). Since the M/s Atul
Engineering Udyog has accepted lower rate of 1500/-(AIR) placed at L/F-F273) it is financially beneficial to Railways.
The proposal has been examined and the following are the observations:
1.0 The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
31.12.2013 for the subject item. The All inclusive rate accepted in the new
tender is Rs.920.23 per No(AIR). As the rates of instant PO is lower than the
subsequent tender and financially beneficial to Railways, Sr. scale tender
committee has recommended to invoke (+)30% option clause quantity (L/F-111)
on the instant PO for a total quantity of 2027 Nos, which was accepted by CMM.
2.0
It is certified by the stores department that the performance of the firm is
satisfactory and supplied 75% of the total quantity (Placed at L/F-117,118).
3.0

The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the PO.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required
DP available upto

Rs.59,85,966.08.
6758 Nos
2027 Nos
Nil
2027 Nos
Rs.17,95,446
Rs.77,81,402
COS
31.03.2014

4.0 Necessary ANE is available (L/F-121) in the case file to cover the proposed
option quantity.
5.0 In view of the financial advantage, if approved we may concur the above
proposal.
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires
the concurrence of Sr.AFA/SF.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

As per F-273, Atul Engineering udyog has agreed to accept (-)30% option
quanity for 516 Nos at lower rats i.e Rs.1500/-(AIR).But not for (+) 30% option
quantity, as such you are advised to take acceptance letter from the firm
separately for (+)30% quanity to supply @1500(AIR).
As per SPS placed at F-299, the performance of the firm is zero. The same
needs to be improved upon to consider (+)30% option clause proposal.

No.ASF/Q 01
2014

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 18-03-

Dy.CMM/G
Sub : Procurement of Metal cutting gas(LPG) for metal cutting and brazing
Exercising of (+) 30% Option Clause.on M/s. BPCL/East
Mumbai,P.O.No:92421 Dt:09.10.12 & M/s.Mahalzmi LPG centre/SC
P.O.No.92422 Dt:09.10.12
Ref : Your Note No:16 to 25 of Case file No. PO.81.12.1399.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause
on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
27.09.2013) for the above subject item are on higher side. The rate accepted from
lowest offer is Rs.968.60, whereas the instant Purchase Order rate is Rs.880/-. In
view of the financial advantage and as recommended by JAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Savithri Engg Products,Sirmour for a quantity of 1,882 Nos with original
terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(xii)
(ii)

Obtaining the Sanction of original accepting authority, ie., CMM.

Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(xiii)

Ensuring availability of funds during the current financial year.

(xiv)

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of Dy.FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
OFFICE

No.ASF/Q 01
2014

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 19-03-

Dy.CMM/G
Sub : Procurement of Metal cutting Gas(LPG) - Exercising of (+) 30%
quantity Option Clause.
Ref : Your Note No:16 to 25 of Case file No.PO.81.12.1399.
-oOoThe proposal resubmitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
06.08.13) for the above subject item are on higher side. The rates of the instant
purchase orders are financially beneficial to Railways. Further, the subsequent
tender committee has also recommended to invoke option clause on these two
firms. In view of the financial advantage, finance concurrence is hereby signified
for exercising (+) 30% Option Clause on M/s. BPCL/East Mumbai for a quantity of
26287 Kgs & on M/s.Mahalaxmi LPG/Centre/Sc for a quantity of 11693 Kgs
with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., COS.

(ii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iii)

Ensuring availability of funds during the current financial year.

(iv)

Getting the MPOs vetted by Stores Finance section.

Further, it is advised to furnish the usage of the subject item from the depots
and their inventories and forwarded to this office, as desired by FA&CAO/S&W
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/79
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:91275 Dt:22.05.12
Ref :Dy.CMM/DSLs Note No:32 of Case file No. DSL/10/11/2855.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/DSL, which is
placed at Folio- 100/C may kindly be perused.
For procurement of the above subject item One Purchase Order has
been placed on M/s. G.S.Products, Dehradun at an all inclusive rate of
Rs.2022.075 per number and at a total value of Rs. 8,68,82,496.53 with the
acceptance of COS (L/F-N/23).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1.0 The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
12.02.2013 for the subject item. The All inclusive rate accepted in the new

tender is Rs.2150.40 each (AIR). As the rates of instant PO is lower than the
subsequent tender and financially beneficial to Railways, SAG tender committee
has recommended to invoke (+)30% option clause (L/F-153) on the instant PO
for a total quantity of 12,890 Nos, which was accepted by GM.
2.0 It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from Stock position slip (L/F-148) that the
firm has not commenced the supplies till date. Out of ordered quantity of
42,967 Nos, the firm has to supply 8,000 Nos within 31.12.2012 and balance
34,967 Nos, from 01.04.2013 to 30.09.2013. As per Railway Board guidelines,
the performance of the firm should be satisfactory, while exercising the option
clause.
3.0The financial implications of the proposed option clause are as follows:
1

Original Value of the PO.

Original Qty in the POs.

(+) 30% option quantity

4
5
6

Qty already utilized under option clause


Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

Rs.8,68,82,49
6.
42,967
Nos
12,890
Nos
Nil
12,890 Nos
Rs.26,06,454
7
Rs.11,29,47,0
43
COS

4.1
Necessary ANE is available (L/F-148) in the case file to cover the
proposed option quantity.
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&.CAO/S&W.
In view of the poor performance of the firm, put up for orders whether
to concur the proposal to exercise (+)30% option clause on the above firm or
otherwise please.
Submitted for kind perusal and orders please.
SSO(A)/(SF)

Sr.AFA/(SF)

NOTE/1
Sub : Procurement of Brake cylinder 355 mm .. Exercising of (+) 30%
Option Clause on M/s.Kayr Enterprises, Kolkata (P.O No:92012
Dt: 01.08.13)
Ref : Dy.CMM/C&Ws Note No:21 to 23 of Case file No. PO.38.13.1640.
-oOo-

A proposal seeking finance concurrence for operating (+) 30% option clause on the
above subject item, received from Dy.CMM/C&W, which is placed at Folio-1/C may kindly be
perused.
For procurement of the above subject item one Purchase Order has been placed on
M/s. Kayr Enterprises/kolkata(AIR- Rs.5839.91per No.) with the acceptance of CMM for a
total value of Rs.32,76,189.51 (L/F-N/13).
Now, Stores branch is proposing to exercise (+)30% quantity option clause on the
above firm as the demand is available.
The proposal has been examined and the following are the observations:
1. Stores branch stated that a new tender has been opened on 29.01.2014, in which
higher rates (Rs.6200.03 L/F-238) were received for the subject item. The JAG tender
committee of the new tender has recommended to exercise (+)30% option clause on
the subject PO for a quantity of 109 Nos(L/F-N-19) and Dy.CMM in his notings at
L/F-N-19 has dropped the subsequent tender and advised to process the quantity
under Option clause for 109 Nos . In view of the financial advantage when compared
with the new tender rates, the proposal is being initiated to exercise option clause on
the above firm for a quantity of 109 Nos.
2. A copy ANE (L/F-F.3) is available in the case file to cover the proposed option quantity.
3. It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from the History sheet that the firm has supplied
25 Nos & 84 Nos to MFT and GTPL respectively well in advance on October 2013 as
against the original D.P. Dec2013, and DP is ahead i.e on 31.03.2013 for the
remaining quantity.Further stated that the firm is an RDSO Part-I approved source.
4. The financial implications of the proposed option clause are as follows:
Original Value of the PO.
Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30% option
clause
Competency of Sanction required
Delivery period available upto

Rs. 32,76,189.51
365 Nos
109 Nos
Nil
109 Nos
Rs.6,36,550.19
Rs.39,12,739.70
CMM
31-03-2014

NOTE-2
With the exercise of above option clause, the revised value will be with in the powers of
original accepting authority ie., CMM. As such, the proposal requires the concurrence of
Sr.AFA/SF.
In view of the financial advantage involved and as recommended by JAG tender
committee of subsequent tender, if approved we may concur the proposal.
Submitted for kind perusal and orders please.

Sr.AFA/(SF)

SSO(A)/(SF)

OFFICE

No.ASF/Q 01
2014

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 20-03-

SMM/
Sub : Procurement of Metal cutting Gas(LPG) - Exercising of (+) 30%
quantity Option Clause.
-oOoIt is advised to furnish the details of usage of the subject item from the
depots(TPTY,GTPL) and its inventories as desired by FA&CAO/S&W.

.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Procurement of Brushless Alternator 4.5 K W (Without ERRU/RRU)..
Exercising of (+) 30% Option Clause on
M/s.Best & Crompton engg Ltd/Chennai(P.O.No.90629 Dt:22.03.13),
Stesalit Ltd/Kolkata(P.O No:90627 Dt:22.03.13)
Ref : Dy.CMM/Elec Note No:22 of Case file No. PE.45.12.1327.
-oOo-

M/s.

A proposal seeking finance concurrence for operating (+) 30% option clause on the
above subject item, received from Dy.CMM/Elec, which is placed at Folio-1/C may kindly be
perused.
For procurement of the above subject item three Purchase Order has been placed on
M/s. P.D.Steels/Mohali,(RDSO PT.II)(AIR-88100/- per set)(O/C not available as D.P.
expired), M/s. Best & Crompton Engg Ltd/Chennai(RDSO Pt.I)(AIR-Rs.88483.50 per set) &
M/s.Stesalit Ltd/Kolkata(RDSO Pt.I)
(AIR- Rs. 88483.50 per set) with the
acceptance of CMM for a total value of Rs.1,39,65,253(L/F-N/15).
Now, Stores branch is proposing to exercise (+)30% quantity option clause on the
above firm as the demand is available.
The proposal has been examined and the following are the observations:

1. The proposal is being initiated based on the recommendations of the

subsequent tender committee. It is stated that a new tender was opened on


18.12.2013 for the subject item. The All inclusive rate quoted by lowest
tenderer(RDSO PT.I) in the new tender is Rs.98,600 per set for which TC
Recommended to go for one round of negotiations. As the rates of instant
POs are lower than the subsequent tender and financially beneficial to
Railways, SAG tender committee has recommended to reserve its
recommendations for the quanity option clause in the LP Pos till the outcome
of negotiations with the Pt.I. source .Further it is stated by Dy.CMM/Elec that
suplimentary T.C. after negotiations
is under signature with finance member.
Negotiated rate of Part II source is Rs. 93270/-(AIR) and Part-I source is Rs. 95000/(AIR) which is higher than the LP rate.

2. A copy ANE (L/F-F.279) is available in the case file to cover the proposed option
quantity.
3. It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from the History sheet that the firm has supplied
75% of the PO quanity for PO.No.90627 Dt: 22.03.13) & 67% of the Po quanity for
PO.NO.90629 Dt:22.03.13
4. The financial implications of the proposed option clause are as follows:
Original Value of the PO.
Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30% option
clause
Competency of Sanction required
Delivery period available upto

Rs. 1,39,65,053
158Sets
35sets
Nil
35sets
Rs.33,25,000
Rs.1,72,90,053
CMM
31-03-2014

NOTE-2
With the exercise of above option clause, the revised value will be with in the powers of
original accepting authority ie., CMM. As such, the proposal requires the concurrence of
Dy.CAO/S&W.

In view of the financial advantage involved and as recommended by SAG tender


committee of subsequent tender, if approved we may concur the proposal.
Submitted for kind perusal and orders please.

Sr.AFA/(SF)

SSO(A)/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),

STORES FINANCE SECTION,


RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
2014

Dt. 24.03-

Dy.CMM/Elec
Sub : Procurement of Brushless Alternator 4.5K W (without ERRU/RRU)...
Exercising of (+) 30% Option Clause on M/s.Best & Crompton Engg
Ltd/Chennai( PO No. 90629 Dt:22.03.13), M/s. Stesalit
Ltd/Kolkata(PO.NO.90627 Dt:22.03.2013)
Ref : Your Note No:28 of Case file No. PE.45.12.1327.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
18.12.2013) for the above subject item is on higher side. The rate received from
lowest technically suitable offer (RDSO Pt.I) is Rs.95000/-, whereas the instant
Purchase Orders rates is 88483.50. In view of the financial advantage to Railways,
finance concurrence is hereby signified for exercising (+) 30% Option Clause on
(i) M/s. Best & Crompton Engg Ltd/Chennai for a quantity of 21 sets,
(ii) M/s.Stesalit Ltd/Kolkata for a quantity of 14 sets with original terms and
conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)
(ii)

Obtaining the Sanction of original accepting authority, ie., CMM.


Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)
(iv)
(v)

Fixing reasonable delivery schedule for the enhanced quantity.


Ensuring availability of funds during the current financial year.
Getting the MPOs vetted by Stores Finance section.

.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W
NOTE/1
Sub : Procurement of Decorative Thermosetting synthetic resin bonded
laminated sheet - Exercising of (+) 30% quantity Option Clause.
Ref : Dy.CMM/Gs Note No:40 to 44 of Case file No.PO.75.13.1230.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed
at Folio-3 may kindly be perused.
For procurement of the above subject item Six Purchase Orders have been
placed on 4 firms viz., (i) M/s. Deco Mica Ltd/Ahmedabad(AIR-Rs.1095 each) (ii)
M/s.R B Poly Boards Ltd/SC(AIR- Rs.1098 each) and (iii) M/s.Wonder Laminates Pvt
ltd,Bishnupur(AIR- Rs.1098each) with the acceptance of COS for a total value of
Rs.2,87,87,490 (L/F-N/28).
The proposal has been examined and the following are the observations:
(i)

The proposal is being initiated based on the higher rates received on


subsequent tender. It is stated that a new tender was opened on
07.03.2014 for the subject item. The All inclusive rate quoted by lowest
tenderer (RDSO PT.II) in the new tender is Rs.1250 per unit. As the rates
of instant PO is lower than the subsequent tender, by exercising Option
clause will be economical to railways.The DP of M/s. R B PolyBoards is
expiring on 30.04.2014.

(ii)

A copy ANE (L/F-F. ) is available in the case file to cover the proposed option
quantity.

(iii)

It is certified by the stores department that the performance of the firm is


satisfactory. However, it is observed from the PO that the delivery terms is after
01.04.2014,as such firm has not commenced the supplies till date. It is stated by
CMM/G that the D P has been deferred for supply after 01.04.2014 due to funds
constraints. However, the firm is Part II RDSO source and regular supplier.

(iv)

The financial implications of the proposed option clause are as follows:

Original Value of the PO.


(+)30%option clause quantity,where DP available

Rs. 2,87,87,490
2052Nos

upto 30.04.14
(+)30% option clause quantity, where DP available
upto 30.08.14
Qty already utilized under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30% option
clause
Competency of Sanction required
Delivery period available upto

2113 Nos
Nil
Rs.45,73,170
Rs.3,33,60,660
COS
31-03-2014

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&.CAO/S&W.
In view of the above,DP for Deco Mica Ltd/Ahmedabad & Wonder Laminates
Pvt ltd,Bishnupur are much ahead i.e 30.08.2014 and the performance of the firms
are not established. Since DP of R B Poly Boards Ltd is expiring on 30.04.2014 if
approved we may process (+)30% option clause on R B Poly Boards Ltd/Sc and for
other two firms we may concur the proposal after satisfactory performance of
supplies.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/SF

FA&CAO/S&W

No.ASF/Q 01
2014

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 18-03-

Dy.CMM/G
Sub : Procurement of Brake cylinder 355mmExercising of (+) 30% Option
Clause.on M/s. Kayr Enterprises/kolkata,P.O.No:92012 Dt:01.08.13
Ref : Your Note No:21 to 23 of Case file No. PO.38.13.1640.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
29.01.2014) for the above subject item are on higher side. The rate accepted from
lowest offer is Rs.6200.03, whereas the instant Purchase Order rate is
Rs.5839.91/-. In view of the financial advantage and as recommended by JAG

tender committee, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Kayr Enterprises/Kolkata for a quantity of 109 Nos with
original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., CMM.

(ii) Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(ii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iv)

Ensuring availability of funds during the current financial year.

(v)

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Supply of Thermo plastic Polyster Elastomer(Hytrel) lower
washer under (+) 30% Option Clause on M/s.Polymer Products
of india/Bangalore & M/s. Calster Steel Ltd/Calcuta.
Ref : Dy.CMM/C&Ws Note No: 23to 31 of Case file No.PC-30.12.1039.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is
placed at Folio-1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on (i) M/s. Polymer Products of india/Bangalore(Pt.II)(AIR
Rs.873.04)
(ii) M/s. Calster Steel Ltd/Calcuta(Pt.I)(AIR

Rs.892.25per No) with the acceptance of CMM for a total value of Rs.
1,51,29,898.57 (L/F-N/16) with (+)30% option clause.
The proposal has been examined and the following are the observations:
(i)

The proposal is being initiated based on the higher rates received on


subsequent tender. It is stated that a new tender was opened on
28.02.2014 for the subject item. The All inclusive rate accepted by the
lowest tenderer (RDSO Pt.I) in the new tender is Rs.1001.01 per no. &
(RDSO Pt.II) is Rs.1035.00. As the rates of instant PO is lower than the
subsequent tender, by exercising Option clause is financially
advantageous to railways.

(ii)

The performance of the firm is satisfactory. Both the firms has


supplied the entire ordered quantity. The delivery period is refixed upto
30.11.2014.

(iii)

Necessary ANE is placed at F/259.

(iv)

The financial implications of the proposed option clause are as


follows:
1
2
3
4
5
6
7
8
9

(v)

Original Value of the two POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs. 1,51,29,898.57
16981 Nos
5094 Nos
Nil
5094 Nos
Rs.45,21,685.3
Rs.1,96,51,583.87
CMM
30.11.2014

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such,
the
proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the proposed option
clause, if approved, we may agree +30% option clause on
M/s.Polymer Products of India/Bangalore(Pt.II) against PO.NO.92025
dt:05.08.13 for a qunaity of 1220 Nos and on M/s. Calster Steel
Ltd/Calcutta(Pt.I) against PO.NO.91790 Dt:16.07.13 for a quanity of
3894 Nos.

Submitted for kind perusal and orders please.


SSO(A)/SF
Sr.AFA/SF

DY.CAO/S&W

NOTE/1

N/1
Sub : Supply of PVC insulated armored,unscreened underground
signaling cable size 12core * 1.5 sq mm under (+) 30% Option
Clause on M/s.Paramount Communication Ltd/New Delhi.
Ref : Dy.CMM/S&Ts Note No: 36 to40 of Case file No.PS.56.13.1019.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject items, received from Dy.CMM/S&T, which is
placed at Folio-1/C may kindly be perused.
For procurement of the above subject item twelve Purchase Orders
have been placed on M/s.Paramount Communication Ltd/New Delhi
(All
inclusive Rates RS.1,61,718.30 per KM.) with the acceptance of AGM for a
total value of Rs.20,26,85,588.35 (L/F-N/22) with (+)25.07% option clause.
Now, Stores branch is proposing to exercise (+)25.07% quantity option
clause on the above firm as the rates received in subsequent new tender of
other Railways are on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that No tender will be opened subsequently for the
subject item in this Railway. But new tenders were opened on
18..03.2014 in other Railways,i.e in West Central Railway the L1
tenderer has quoted(L/F-830 to 832)basic rate of Rs.1,50,000. per
Km(Pt.I), in Northern Railways L1 tenderer has quoted(L/F-833-849)
Rs.1,79,780 per Km(basic rate). However, it is stated that rates cannot
be certified to be higher as the base date taken for PVC will not be
known and the PVC based on which the PO are issued cannot be
downloaded in the IREPS. Stores department is proposing to exercise
(+)25.07% option clause on the instant Purchase Orders. As there is a
difference in basic rate, it is financially advantageous to Railways in
exercising (+)25.07% quantity option clause for a quantity of 138.2 Nos
on the above firm as proposed by Stores branch.
2.0
This office has returned with some observations placed at folio
(L/F-N-39) which may kindly be perused. Stores branch in response to
our observations stated that updation of the price of M/s. Paramount
communications from Apr13 to Feb14 and that of W.C.Rly the PVC
base date being the same is placed at L/F.862 & 869. Updated rate of
WC.Rly is the same as S.C Rly, but higher as compared to N.Rly.

3.0

It is stated that the performance of the firm is satisfactory. It is


further stated that the firm has completed its supplies against the Pos
(L/F-806).Further stated that the firm has completed supplies against
the stock PO at F.727 for 125.365 Kms vide F.806 well within the
Delivery date. Since Sr.DSTE/Co-ord/SC vide F.807 has advised to
supply the material of 216.6 Kms only after March 2014 against Po due
to paucity of funds, the firm has not supplied the material.But as per
Sr.DSTE/SC Lr. Dated 10.04.2014 (L/F.876)the firm has supplied the 216
Kms on 03.12.13against the said PO. Out of 1253.325 Km,the firm has
supplied 341.365 Km as on date.

4.0

The Delivery Period of the subject PO is expiring on 20.06.2014.

5.0

Thirteen Stock NS indent copies are available in the case file (L/F-815
to 828) for covering the above option qty. But all the indents pertain to
the period 2013-14 and funds certified for 2013-14.

6.0
7.0
1
2
3
4
5
6
7
8
9

The proposal has the Administrative approval of CMM (L/F-N-38)


for exercising option clause.
The financial implications of the proposed option clause are as
follows:

Original Value of eleven POs.

Rs.
20,26,85,588.35
Original Qty in the POs.
1253.325Kms
(+) 30% option quantity
314.208
Kms
Qty already utilized under option clause
Nil
Now proposed qty under option clause
138.2Kms
Value of the proposed option Qty
Rs.2,23,49,469.
06
Total Value of the POs after exercising (+) Rs.22,50,35,057
30% option clause
.41
Competency of Sanction required
AGM
Delivery period available upto
20.06.2014

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., AGM. As such, the proposal requires the
concurrence of FA&CAO/S&W.
Submitted for orders please.
SSO(A)/SF
(On leave)

Sr.AFA/SF

Sr.AFA/M&P
Detailed section noting may please be seen.

Railway board letter no.99/RS(G)/779/S dated 20.05.2010 indicate that


(clause 3.1 to 3.4)option clause is to be operated where there is a clear
demand for additional quantities and benefits accrued to railways in terms of
existing contractual rates being reasonable/lower than the newly opened
tender rates.
The following recommendations are made:

(a). It is seen from the proposal that the performance of the firm M/s Paramount
Communications Ltd/New Delhi (Pt.I RDSO supplier)(Folio-2/C) indicate that
the performance is only 25% i.e (125+216=341 Kms) 216 Kms upto
03.12.2013, out
of the 1253.325 Kms. The delivery period is available upto 20.06.2014 in
almost all
the Pos. Hence the performance of the firm is reasonable.
(b). It is certified by COS videL/F. N-37 & 38 of Link file that there is a demand for
additional quantity of 138.2 Kms. These additional quantities are pertaining
to
the period 2013-14 and requirement of the same is to be ensured by the
consignee in the year 2014-15 duly allotting the funds. Further it is seen that
the
present requirement can be met from the 30% option quantity clause of the
existing POs i.e Qty tendered is 1194.46 Kms and accepted quantity is
1253.325 Kms . Hence the option clause can be exercised upto a percentage
of
25.07%. i.e 314.208 Kms. Hence the additional indent quantity of 138.2 Km
is
agreeable.
(c) AIR rate per Km is Rs.1,61,718.30/- is available for all the existing POs for
having
delivery period upto 20.06.2014. The North western railways AIR rate is
1,61,796.30/- per Km(LOA dt:27.09.2013), the Western Railway AIR is Rs.
1,62,601.73/- per Km(LOA Dt:24.02.2014), indicate that there is slight
advantage of
rate when compared to other railways.
(d). At present funds are made available based on the on account budget grant of
Rs.
160Cr. The consignee department and the stores department has to ensure the
availability of funds against the proposed procurement of additional quantity of
138.2 Kms under 30% option clause.

With the proposed additional quanitity of 138.2 Kms the total value of the POs
after exercising the (+) 25.07% option clause would be Rs.22,50,35,057.41/-.
The proposal requires the sanction of AGM with finance concurrence of
FA&CAO/S&W.
Submitted please.

Dy.CAO/S&W
FA&CAO/S&W

NOTE/85
Sub :- Procurement of Hydraulic oil servo system HLP.68
Exercising of (-)30% option clause. P.O.No:91077 Dt:05.05.2012.
Ref :- Dy.CMM/Gs Note No. 23 to 24 of Case file No:PO.80.11.1152.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/G, is placed at Folio-107/C which
may kindly be perused.
One Purchase Order has been placed for procurement of the above subject
item on M/s.Hindustan Petroleum Corporation Ltd/Chennai (L/F-106) for a

quantity of 1,35,360 LTRS at a total value of Rs..1,14,82,588.80 with the


acceptance of CMM/G (L/F-N/11).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
91077 Dt: 05.05.12 for a quantity of 40,407 LTRS.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
10.04.2013, from lowest technically suitable offer is Rs.79.26 per litre
(L/F-127-129), whereas the instant PO rate is Rs.84.83per litre (L/F-106).
Earlier, (+)30% option clause was exercised on this firm as the rates
received in the subsequent tender are on higher side.

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.79.26 per litre, but the firm refused to accept the offer.
The firm still has to supply 40,407 ltrs only. Though the (+)30% quantity
works out to 40,608 Ltrs, the balance quantity to be supplied by the firm
is only 40,407 ltrs. As such, it is proposed to cancel 40,407 ltrs duly
exercising (-)30% option clause on the firm.

(iii)

As the original tender was finalized with JAG tender committee and
accepted by CMM, the above proposal requires the concurrence of
Dy.CAO/S&W for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-107).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)
NOTE/1
Sub : Procurement of Pre Printed,pre-perforated UTS tickets- Exercising of (+)
30%
Option Clause.P.O.No:93135 Dt:18.12.13.
Ref :Dy.CMM/S&Ts Note No:23 of Case file No. 83.13.1522.
-oOo-

A proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/S&T, which is placed at Folio- 1/C
may kindly be perused.
For procurement of the above subject item One Purchase Order has been
placed on M/s. Devharsh Infotech Pvt Ltd, Mumbai at an all inclusive rate of
Rs.38.11 per roll and at a total value of Rs. 42,87,375 with the acceptance of CMM
(L/F-N/16).
Now, it is proposed to exercise (+)30% quantity option clause on the above
firm as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1.0 The proposal is being initiated based on the higher rates received in the
subsequent tender. It is stated that a new tender was opened on 10.01.2014 &
14.03.2014 for the subject item. The All inclusive rate accepted in the new
tender is Rs.42.20ps per roll (AIR). As the rates of instant PO is lower than the
subsequent tender and financially beneficial to Railways,CMM has
recommended to invoke (+)30% option clause (L/F-N-23) on the instant PO for a
total quantity of 33750 Rolls.
2.0
It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from Receipt Note(L/F 175) that the firm has
supplied 50,000 Rolls and for the balance DP is much ahead.
3.0
Necessary ERM is available in the case file to cover the porposed option
clause (L/F-181).
4.0

The financial implications of the proposed option clause are as follows:

1
2

Original Value of the PO.


Original Qty in the POs.

(+) 30% option quantity

4
5
6

Qty already utilized under option clause


Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

Rs.42,87,375.
112500
Rolls
33750
Rolls
Nil
33750Rolls
Rs.12,86,212.
5
Rs.5573587.5
CMM

5. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF.
6. In view of the financial advantage involved in the proposed option clause, if
approved, we may agree for the proposed option clause proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
16.04.2014

Dt.

Dy.CMM/G
Sub : Procurement of Pre printed, Pre perforated UTS tickets -Exercising of
(+) 30% Option Clause.on M/s.Devharsh Infotech Pvt Ltd,
Mumbai,P.O.No:93135 Dt:18.12.13.
Ref : Your Note No:22 to 23 of Case file No. PP.83.13.1522.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
10.01.2014 & 14.03.2014) for the above subject item are on higher side. The rate
accepted from lowest offer is Rs.42.20 per Roll, whereas the instant Purchase Order
rate is Rs.38.11 per Roll. In view of the financial advantage and as recommended
by Stores branch, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Devharsh Infotech Pvt Ltd/Mumbai for a quantity of
33,750 Rolls with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., CMM.

(ii) Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iv)

Ensuring availability of funds during the current financial year.

(v)

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
NOTE/1
Sub :- Procurement of Yoke for CBC--Exercising of (-)30% option clause.
P.O.No:90871 & 90872, Dt:17.04.2013.
Ref :- Dy.CMM/C&Ws Note No. 56 to59 of Case file No:PW.38.12.1250.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/C&W, is placed at Folio-1/C
which may kindly be perused.
Four Purchase Order has been placed for procurement of the above subject
item on (i).M/s.Burn Standard Co Ltd/Kolkata(option clause not applicable)
(L/F.F-275),(ii).M/s.Rausheena Udyog Ltd/Kolkata(option clause not
applicable) (L/F-F-274), (iii).M/s.Siena Engineering (P) Ltd/Indore(L/F.F273),(iv).
M/s.Rine
Engineering
Pvt
Ltd/Baddi(L/F.F-270Hindustan
Petroleum Corporation Ltd/Chennai (L/F-106) for a quantity of 1,35,360 LTRS
at a total value of Rs..1,14,82,588.80 with the acceptance of CMM/G (L/F-N/11).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
91077 Dt: 05.05.12 for a quantity of 40,407 LTRS.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
10.04.2013, from lowest technically suitable offer is Rs.79.26 per litre
(L/F-127-129), whereas the instant PO rate is Rs.84.83per litre (L/F-106).
Earlier, (+)30% option clause was exercised on this firm as the rates
received in the subsequent tender are on higher side.

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.79.26 per litre, but the firm refused to accept the offer.
The firm still has to supply 40,407 ltrs only. Though the (+)30% quantity

works out to 40,608 Ltrs, the balance quantity to be supplied by the firm
is only 40,407 ltrs. As such, it is proposed to cancel 40,407 ltrs duly
exercising (-)30% option clause on the firm.
(iii)

As the original tender was finalized with JAG tender committee and
accepted by CMM, the above proposal requires the concurrence of
Dy.CAO/S&W for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-107).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub : Exercising of (-)30% option clause on P.O.No.91239 Dt:29.05.2013
(Procurement of Buffer Plunger)
Ref : Dy.CMM/C&Ws Note No:15,16 of Case file No. PC.30.12.2378.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/C&W, which is placed at Flag A
may kindly be perused.
For procurement of the above subject item one Purchase Order has been
placed on M/s. Global Alloys Pvt Ltd(AIR- Rs.4620.47 for LGD & Rs.4665.47
for TPTY per No) with the acceptance of CMM for a total value of
Rs.1,85,22,059.36 (L/F-N/11).
Now, Stores branch is proposing to exercise (-)30% quantity option clause
on the above firm as the rates received in subsequent tender are on lower side.
The proposal has been examined and the following are the observations:
1.0 Stores department stated that a new tender was floated for procurement of
the subject item and the tender was opened on 26.02.2014. It is observed that
the L1 tenderer has quoted Rs.4025.30 per No for CRS/TPTY &
Rs.40000.30 per No for M&E/LGD, which is lower than the subject PO rate.

As such, Stores department vide their letter placed at L/F-246 advised the firm
M/s. Global Alloys Pvt Ltd/Kanpur to accept the lower rate or (-)30% option
clause will be operated.
2.0 Delivery period
31.03.2014.

for

the

subject

Purchase

order

expired

on

3.0 M/s. Global Alloys Pvt Ltd Vide their Letter dated 19.03.14(L/F-250)
&03.04.2014 (L/F-256)did not accepted the lower rate,as they have supplied
3556 Nos to LGD & TPTY and balance 432 Nos have already inspected by RITES
and I.C. issued on 15.03.2014. But stores branch stated that as per history
sheet L/F-251 to 255 quantity supplied and accepted by the consignees are
1993 Nos only and Outstanding quantity is 1995 Nos, as such now it is
proposed to exercise (-)30% option clause on the firm. Hence, the originally
ordered quantity will be reduced for a quantity of 1,196 Nos.
4.0
As the original tender was finalized with JAG tender committee and
accepted by CMM, the above proposal requires the post-facto concurrence of
Dy.CAO/S&W for exercising (-)30% option clause.
5.0 The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-107).
In view of the above, if approved we may concur the proposal to exercise
(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)(On leave)
Sr.AFA/M&P

In continuation to the above section notings at pre page, Dy.CMM/C&W has


resubmitted the proposal (N/21 to 23 of L/F) asking for withdrawl of (-)30% option
clause and Imposing Lower rate @ Rs.4000.30 each for unsupplied quantity of 432
Nos as the firm is agreeing for lower rate for the balance unsupplied quantity as on
date of issue of letter for imposing (-)30% option clause i.e 10.03.14.
The proposal has been examined and the following are the observations:
As per the facts given by the executive and as per history sheet , finance has
concurred (-)30% option quantity vide Lr.No.ASF/Q01 dated 20.05.2014.
Now executive department stated that, as per latest supply position
furnished by LGD & TPTY, it is observed that TPTY quantity of 2125 nos has been
offered for inspection before tender opening 26.02.14 and LGD quanity, last
inspection call has been given on 07.03.14 for 432 Nos were outstanding to supply
as on date of issue of letter for imposing (-)30% option clause. Hence executive is
requesting to withdraw (-)30% concurrence letter for 1196 Nos and vet the MPO at
lower rate @4000.30 per No for 432 Nos which was supplied after 10.03.2014(i.e
(-)30% letter).

Further it is certified by Dy.CMM/C&W that most care will be taken for seeking
finance concurrence for operation of +/-30% option clause duly furnishing the
required facts after getting confirmation from the feeding depots. Staff have been
advised to be more carefull before processing option clause proposals.
Firm vide their letter dated 28.08.2014(L/F.F-307) has agreed to supply at Rs.
4000.30 for the balance quantity of 432 Nos which was supplied after the issue of
letter for imposing (-)30% option clause.
As the firm has already supplied the entire ordered quantity within due date
i.e 31.03.2014 and the consignee received the entire quantity,we doesnt have
option for cancelling the quantity. But we have an option to impose lower rate for
the balance quantity which was supplied later i.e after the issue of letter for
imposing (-)30% option clause i.e. only for 432 Nos. so that
financially
advantageous to Railways is not lost, and as the firm is also agreeing for lower rate
for 432 Nos @ Rs.4000.30 per no, if approved we may withdraw (-)30% option
clause letter No.ASF/QO1 dated 20.05.2014 and vet the MPO for 432 Nos at Lower
rates.
Submitted for order please.
SSO(A)/SF
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01
12.05.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Supply of PVC insulated armored, unscreened underground signaling
cable size 12 core *1.5 sqmm under +30% option clause on M/s. Paramount
communications ltd/New delhi.
Ref:- Your Note No. 36 to 40 of case file No. PS.56.13.1019.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders has been examined and the following are the
observations.

1. Firm has supplied 341.365 Kms out of 1253.35 i.e only 25% of the ordered
quantity, this shows that the requirement is not urgent. The same may be
clarified to exercise option clause. Further it may confirmed whether the
requirement is low for the above period or the supply is less.
2. The urgency of material i.e 138.2 Kms to operate under 30% option clause
from various consignee may be furnished.
3. It is mentioned that the performance of the firm is satisfactory even though
firm has supplied only 25%, the reasons for the same may be placed on file.
Further Original DP for some of the consignee expired on 20.02.2014 but
material not received, the reasons for the same may be placed on file.
4. Since all the NS indents pertains to the previous years i.e 2013-14. It may be
confirmed whether the quantity is required during the current year, if so

necessary funds certification for the current year may be obtained and
placed on file.
Encl: Concerned case file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

In continuation to the above section notings at N-44 & 45, Dy.CMM/Genl has
resubmitted the proposal( F-23 &24), in response to this office observations made
vide (L/F- N-44 & 45) which may kindly be perused.
It was stated by Dy.CMM/G that regarding supply against pending PO the
intial DP was upto 30.04.14 which has been extended upto 30.06.14 , as the
material were offered for inspection by firm in time, but Rites has raised issue on
specification with RDSO which is under clarification from BIS. Hence it was stated
that as far as firm is concerned, they have offered material for inspection in time
and there are regular suppliers and has supplied the stock orders. As such the
performance of the firm is certified as satisfactory.
Further stated that current tender has been also finalized on same firm at
higher price, it will be in Railways financial interest to avail the option clause.
Further in the current tender, tender committee has recommended and accepted
to avail 2113 Nos through option clause(L/F-447) for PL NO.75403419.
Submitted for kind perusal and order please.
SSO(A)/SF
Sr.AFA/SF

1. Since the DP for the PO.Nos 91806 &57027 has expired and quantity still to
supply is 1545 sets. As such it is stated that to consider option clause the
performance of the firms is to be satisfactory. Hence to invoke option clause
firms performance has to be improved upon.
2. Finalized T C recommendation copy for tender opened on 26.03.14 may be
placed on file to assess rate reasonability.
3. Copy of ANE may be placed on file.

NOTE/85
Sub :- Procurement of Finger Contact segment Assembly for Reverser/CTF
Exercising of (-)30% option clause. P.O.No:91786 Dt:16.07.13.
Ref :- Dy.CMM/Elecs Note No. 17 to 19 of Case file No:PO.25.13.4512.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/Elec, is placed at Folio-1/C which
may kindly be perused.
One Purchase Order has been placed for procurement of the above subject
item on M/s.ACME Engg Works/Kharagpur(L/F) for a quantity of 381 Nos at
a total value of Rs.37,14,464.25 with the acceptance of CMM/E (L/F-N/ ).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
91786 Dt: 16.07.13 for a quantity of 114 Nos.
The proposal has been examined and the following are the observations:

(i)

It is proposed to invoke
subject P.O, as the rate
23.04.2014, from lowest
), whereas the instant PO

(-) 30% quantity option clause on the above


received in the tender opened recently ie on
technically suitable offer is Rs.
Per No(L/Frate is Rs.9749.25 per No (L/F- ).

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs
per No, but the firm refused to accept the offer. The
firm still has to supply
Nos only. As such, it is proposed to cancel
114Nos duly exercising (-)30% option clause on the firm.

(iii)

As the original tender was finalized with JAG tender committee and
accepted by CMM, the above proposal requires the concurrence of
Sr.AFA/SF exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-107).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub :- Procurement of Equalising stay for lower spring beam, Exercising of
(-)30% option clause. P.O.No:30.12.3650.1.90485 Dt:10.03.14.
Ref :- Dy.CMM/C&Ws Note No.22 of Case file No:PC.30.12.3650.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/C&W, is placed at Folio-1/C
which may kindly be perused.
Two Purchase Order have been placed for procurement of the above subject
item
on
M/s.HRS
Engineers,Howrah(L/F-301)
for
a
quantity
of
494Nos(Development
order)
@743/&
on
M/s.M.S.Chain
Industries/HWH( L/F.300) for a quantity of 3730( Regular order) @747.95 at a
total value of Rs.31,65,650.50 with the acceptance of CMM/M (L/F-N/8).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O
No.90485 Dt: 10.03.14 for a quantity of 148 Nos.
The proposal has been examined and the following are the observations:

(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
27.12.13, from lowest technically suitable offer(Development order) is
Rs.733 per Nos (L/F-305), whereas the instant PO rate is Rs.743 per No
(L/F-N-7).

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.733 per No, but the reply from the firm till date for
acceptance of lower rate not received. As such, it is proposed to cancel
148 Nos duly exercising (-)30% option clause on the firm.

(iii)

As the original tender was finalized with JAG Level tender committee and
accepted by CMM, the above proposal requires the concurrence of Sr.AFA
for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-1).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

No.ASF/Q 01
2013

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 19-05-

Dy.CMM/C&W
Sub :- Procurement of Euqlising stay for lower spring beam Exercising of
(-)30% option clause. P.O.No:90485 Dt:10.03.2014.
M/s. HRS Engineers, Howrah

Ref :- Your Note No. 22 of Case file No:PC.30.12.3650.


-oOoThe proposal received in connection with exercising of (-) 30% Option Clause
on the above subject item Purchase Order has been examined.
As the firm has not accepted for the lower rate received in subsequently
opened tender on 127.12.13 for the subject item, finance concurrence is hereby
signified for exercising (-) 30% Option Clause on M/s. HRS Engineers/Howrah
against PO No:90485 dt:10.03.2014 for a quantity of148 Nos.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Coverage of POH kit of injection moulded high performance
under (+) 30% Option Clause.
P.O.No:91806 Dt:17.07.2013 and 57027 Dt:17.07.2013 on
M/s.Jai Polypan Pvt Ltd/Jaipur.
Ref : Dy.CMM/C&Ws Note No: 21 to 22 of Case file No.PC.30.12.3653.
-oOo-

A proposal seeking finance concurrence for operating (+) 30% option


clause on the above subject item, received from Dy.CMM/C&W, which is
placed at folio-1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on M/s. Jai Polypan Pvt Ltd/Jaipur(AIR- Rs.1,682per set) with the
acceptance of CMM/M for a total value of Rs.66,69,130 (L/F-N/13) with
(+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1.0
It is stated that a new tender was opened on 26.03.2014 in which the
L1 tenderer has quoted Rs.2006.56 per set. The instant POs rate is Rs.1682/per set, which is less in rate by Rs.324.56per set. The new tender has been
droped by the tender committee duly recommending to exercise (+)30%
option clause on the instant Purchase Order (L/F-136). As such, Stores
department is proposing to exercise (+)30% option clause on the instant
Purchase Order. As there is a rate difference of Rs. 324.56 per set, it is
financially advantageous to Railways in exercising (+)30% quantity option
clause for a quantity of 1189 sets on the above firm.(Total Diff is Rs.3,85,902)
2.0

It is stated that the performance of the firm is satisfactory. However, it is


observed from the History sheet placed at L/F-127, that the firm has supplied
2420 out of 3965 sets i.e (61%supplied).

3.0

The Delivery Period of the subject PO is expired on30.04.2014. However the


executive advised the firm for operation of (+)30% vide L/F.126 and the
same has been accepted by the firm vide L/F.132.

4.0

One Stock ANE is available in the case file (L/F-135) for covering the above
option qty.

5.0

The proposal has the Administrative approval of CMM/M for exercising


option clause on the above firm.
(PTO)

NOTE/2
6.0

The financial implications of the proposed option clause are as


follows:
Original Value of the PO.
Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs. 66,69,130
3965 sets
1189 sets
Nil
1189 sets
Rs.19,99,898
Rs.86,69,028
CMM
30.04.2014

In view of the financial advantage involved in the proposed


option clause, if approved we may concur the proposal postfacto
to exercise (+)30% quantity option clause for a total quantity of
1189sets on M/s.Jai Polypan Pvt Ltd/Jaipur.
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie., CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of Oil Machinery/General purpose
machinery oil ..
Exercising of (+) 30% Option Clause on M/s.IOC/SC
(P.O No:91906 Dt: 23.07.2013)
Ref : Dy.CMM/Gs Note No:23 to 25of Case file No.
PO.80.13.1005.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/G, which
is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. Indian Oil Corporation Ltd/Secunderabad (AIRRs.75.65 per Ltr.) with the acceptance of COS for a total value of
Rs.2,52,59,535 (L/F-N/20).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the demand is available.
The proposal has been examined and the following are the
observations:
1.0
It is stated that a new tender was opened on 02.05.2014 in
which the L1 tenderer has quoted Rs.91.32 per Lr. The instant PO
rate is Rs.75.65 per Ltr, which is less in rate by Rs.15.67per Ltr. As
such, Stores department is proposing to exercise (+)30% option
clause on the instant Purchase Order. as it is financially
advantageous to Railways in exercising (+)30% quantity option
clause for a quantity of 1,00,170Ltrs which was approved by CMM.
(Total Diff in rate is Rs.15,69,663.9)
2.0
A copy ANE (L/F-298,299) is available in the case file to
cover the proposed option quantity on MFT & LGD depots.

3.0
It is certified by the stores department that the performance
of the firm is satisfactory. However, it is observed from the
History sheet that the firm has supplied 1,39,020 Ltrs against first
lot to all depots (L/F/301-304) and against the second lot, firm has
submitted proforma invoices to depots, they have submitted pay
orders to accounts, cheques are yet to be cleared, after the receipt
of the payments the second lot will be supplied by firm being the
advance payment and delay is on accout of Railways only.As such it
is certified that the performance of the firms is certified as
satisfactory.

The financial implications of the proposed option clause are as follows:


Original Value of the PO.

Rs.

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

2,52,59,585
.09
3,33,900 Ltrs
1,00,170 Ltrs
Nil
1,00,170 Ltrs
Rs.75,77,860.50
Rs.3,28,37,445.
59
CMM
31.05.2014

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage involved, if approved we may
concur the proposal.

Submitted for kind perusal and orders please.


SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 20-05-2013
Dy.CMM/C&W
Sub :- Procurement of Buffer Plunger Exercising of (-)30% option
clause on
M/s. Global Alloys Pvt ltd, P.O.No:91239 Dt:29.05.2013.

Ref :- Your Note No. 15,16 of Case file No:PC.30.12.2378.


-oOoThe proposal received in connection with exercising of (-) 30%
Option Clause on the above subject item Purchase Order has been
examined.
As the firm has not accepted for the lower rate received in
subsequently opened tender on 26.02.2014 for the subject item,
Postfacto finance concurrence is hereby signified for exercising (-) 30%
Option Clause on M/s. Global Alloys Pvt Ltd/Kanpur against PO
No:91239 Dt:29.05.2013 for a quantity of 1196Nos.
The above concurrence is subject to the following:
1.0
2.0

Obtaining the Sanction of original accepting authority, ie., CMM.


Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANESHAN
)
Sr.AFA/SF
FA&CAO/S&W

FINANCIAL ADVISER

AND

For

OFFICE OF THE
CHIEF ACCOUNTS OFFICER (S&W),

STORES FINANCE SECTION,


RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 20.05.2014
Dy.CMM/C&W
Sub : Procurement of POH kit of injection moulded high
performance
Exercising of (+) 30% Option Clause.on M/s.Jai Polypan Pvt
Ltd/Jaipur,P.O.No:91806 Dt:17.07.2013 and 57027
Dt:17.07.13.
Ref : Your Note No:21 to 22 of Case file No. PC.30.12.3653.
-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 26.03.2014) for the above subject item is on higher side. The
rate quoted by the lowest offer is Rs.2006.56 per set, whereas the
instant Purchase Order rate is Rs.1682/- per set. In view of the financial
advantage and as the subsequent tender has been droped by the tender
committee duly recommending to exercising the (+)30% option clause,
Postfacto finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Jai Polypan Pvt Ltd/Jaipur for a quantity of 1189
sets with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., CMM.

(ii) Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii.) Fixing reasonable delivery schedule for the enhanced quantity.
(iv.)

Ensuring availability of funds during the current financial


year.

(v.)

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 23.05.2014

No.ASF/Q 01
Dy.CMM/C&W

Sub: Procurement of Adapter by exercising (+)30% option clause.


Ref: Your Note No.31 of case file No.PW.38.13.2181.
-oOoThe proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined and the
following are the observations.
1.0

In terms of para 3.3 of Railway Board letter No: No:99/RS(G)/779/5


Dt:12.03.2010, option clause can be operated only where there is a clear
demand for additional quantities and benefits accrue to Railways in terms
of existing contractual rates being reasonable/lower than newly
opened tender rates. It is observed from the proposal that no such
exercise has been made to prove that the existing rates are reasonable.
As such, it is advised that latest rates obtained in neighboring Railways, if
not available in this Railway, may be compared to justify the rate
reasonability.
2.0F-249, Non stock indent under RSP is for the year 2013-14, whereas the
proposl is processed during the current financial year. Hence necessary
funds certification in the current financial year may be obtained and
placed on file.
The proposal is returned herewith.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
23.05.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Procurement of Decorative Thermosetting synthetic resin
bonded
laminated sheet- Exercising of (+)30% option cause on M/s.
R.B Poly Boards Ltd/SC against PO.NO.29314 & 57029.
Ref:- Dy.CMM/G Note no. 44 & 45 of case file No.PO.75.13.1230.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined and the following are the observations.

1. Supply position after 01.04.2014 to till date maybe placed on file.


Further, when two extensions were given and LD is levied,can we
say that the performance of the firm is satisfactory.
2. As against PO.No.91821 dt 18.07.13 & 29315 Dt:19.07.13, po
placed on M/s. Wonder Laminates & Deco-Mica Ltd DP expired on
31.01.14. The reasons for not exercising the option clause on the
above firm may also be placed on file.
This issues with the approval of FA&CAO/S&W

(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL ADVISER AND


STORES

OFFICE OF THE
CHIEF ACCOUNTS OFFICER (S&W),
FINANCE SECTION,

RAIL NILAYAM, IInd FLOOR,


SECUNDERABAD
No.ASF/Q 01
04.06.2014

Dt.

Dy.CMM/G
Sub:- Procurement of Bed sheets Handloom bleached- Exercising of
(+)30% option cause on M/s.All India Handloom Fabrics/BB,
PO.No.91643 Dt:04.07.13 & on M/s. Gujarat Handloom
Society/ADI PO.No.91644 Dt:04.07.13.
Ref:- Dy.CMM/E Note no. 32,33 of case file No.PP.79.12.1448.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is seen from the case file that M/s.
All India Handloom Fabrics/BB has to supply 35000Nos in Apr14 &
35000 Nos in June , but so far the firm has not commenced the
supplies. As such performance of the firm is to be improved upon to
consider option clause.
2. Latest updated SPS may be placed on file.
3. A copy of ANE may be placed on file for exercising option clause.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 04.06.2014
SMM/C&W
Sub : Procurement of Pin Dia 50*120 Electroplated for bogie etc
- Exercising of (+) 30% Option Clause.P.O.No:90623
Dt:21.03.13 on M/s.
Soni engineering Works/HWH.
Ref : Your Note No:21,22 of Case file No.PC.30.12.1516.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 113.11.2013) for the above subject item are on higher side.
The rate accepted from lowest offer is Rs.60.56, whereas the instant
Purchase Order rate is Rs.57.34. In view of the financial advantage and as
recommended by JAG tender committee, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s.Soni Engineering
Works/HWH for a quantity of 12,022 Nos with original terms and
conditions with in Delivery Period.

The above concurrence is subject to the following:


(i)

Obtaining the Sanction of original accepting authority, ie.,


Dy.CMM.

(ii) Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii) Fixing reasonable delivery schedule for the enhanced quantity.
(iv). Ensuring availability of funds during the current financial year.
(v). Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

FINANCIAL

No.ASF/Q 01
05.06.2014

For

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Procurement of Finger contact segment- Exercising of
(+)30% option cause on M/s.ACME Engg Works/Kharagpur,
PO.No.91787 Dt:16.07.13.

Ref:- Dy.CMM/Elec Note no. 19,20 of case file No.PA.25.13.4824.


***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is certified that the performance of
the firm is satisfactory, but as per the case file the firm has not
commenced the suuplies and DP is upto 10.06.2014 only. As such
performance of the firm is to be improved upon to consider option
clause.
2. Finalized T.C.minutes for the tender opend on 23.04.14 may be
placed on file to assess rate reasonability.
3. Detailed calculation sheet for updating base price (subsequent
tender) may be placed on file along with documentary evidence for
base prices of silver.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

In continuation to the above section noting at 46, Dy.CMM/Genl has


resubmitted the proposal , in response to this office observaytions
made vide (L/F.465) which may kindly be perused.
It was stated by Dy.CMM/G that regarding DP extension, the
reasons for giving first extension was the financial constraints faced
by the Railways and with the consent of Mechancal dept (L/F.N-37)
DP was refixed upto 30.04.14. Second extension was given upto
30.06.14 with LD as per firms request, as RITES

FINANCIAL

No.ASF/Q 01
19.06.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Procurement of Impregnated compressed laminates- Exercising
of (+)30% option cause on M/s.Composite Boards Pvt
ltd/Chennai.
Ref:- Dy.CMM/G Note no. 21-22 of case file No.PO.93.12.1029.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. It is observed from the case file that the firm has supplied 1667
Nos(i.e 34% supplies of the total ordered quantity) for which the

information
made available on the file.The complete details of
supplies made against Po.NO.29350 dt.05.08.13, Po.No.57037
Dt:05.08.13 to be furnished to guage the performance.
2. As regards to supply of 2ndlot, delivery period is fast approaching as
such it may be confirmed and details furnished as to whether the
firm has offered the material for inspection/dispatched/material
received in the depot and accounted for.
The file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
19.06.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Procurement of Striker casting wear plate- Exercising of (+)30%
option cause on M/s.Melbrow Engg works pvt ltd/Kolkata.
Ref:- Dy.CMM/G Note no. 21 of case file No.PW.30.06.2014.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. It is observed from the case file that the firm has supplied 12152
Nos(i.e 50% supplies of the total ordered quantity) for which the
information made available on the file.As regards to supply of 2 ndlot,
delivery period is fast approaching i.e 30.06.2014 as such it may be
confirmed and details furnished as to whether the firm has offered
the material for inspection/dispatched/material received in the depot
and accounted for to guage the performance for invoking option
clause.

The file is returned herewith.


Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

NOTE/1
Sub : Procurement of Decorative Thermosetting synthetic
resin bonded
laminated sheet - Exercising of (+) 30% quantity
Option Clause.
Ref : Dy.CMM/Gs Note No:40 to 44 of Case file
No.PO.75.13.1230.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/G, which is placed at Folio-1 may kindly be perused.
For procurement of the above subject item Six Purchase Orders
have been placed on 3 firms viz., (i) M/s. Deco Mica Ltd/Ahmedabad(AIRRs.1095 each) (ii) M/s.R B Poly Boards Ltd/SC(AIR- Rs.1098 each) and
(iii) M/s.Wonder Laminates Pvt ltd,Bishnupur(AIR- Rs.1098each) with
the acceptance of COS for a total value of Rs.2,87,87,490 (L/F-N/28).
The proposal has been examined and the following are the
observations:
Earlier, the proposal was returned with some observations vide
letter placed at Flag-B, which may kindly be perused. As the
extensions was given twice with LD charges. In such case, how the
performance of the firm was certified satisfactory? Further the reasons
for not exercising the option clause on M/s. Wonder Laminates may be
placed on file.
In response to finance observations, Stores department
resubmitted the proposal stating against Po.NO.29314 & 57029 on
M/s.R.B.Poly Boards Ltd/SC DP extension was given two times. The
reason for giving first extension was the financial constrainsts faced
by the Railway and with the consent of Mechanical department. DP
was fixed upto 30.04.14. Second extension was given upto 30.06.14
with LD as per firms request , as Rites could not take up inspection

though firm has offered the material in time for inspection. As such it
is stated by stores branch that in both the cases , there is no fault of
the firm. Hence it is stated that the performance of R.B.Poly Boards
Ltd/Sc has been certified as satisfactory, in the subsequent tender the
firm was recommened for placement of bulk order.
Regarding operation of O/clause against M/s. Wonder Laminates, it
is stated that DP of subject orders expired on 31.01.2014 and option
clause could not be utilized as price trend was not available till current
year tender opened on 07.03.2014.
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the higher rates received

in the subsequent tender. It is stated that a new tender was


opened on 07.03.14 for the subject item. The All inclusive rate
accepted in the new tender is Rs.1224.63 per No. As the rates of
instant PO is lower than the subsequent tender and financially
beneficial to Railways and AGM has recommended to invoke
(+)30% option clause (L/F-N-447) on the instant PO for a total
quantity of 2052 Nos. by exercising Option clause will be
economical to railways.The DP of M/s. R B PolyBoards is expiring on
30.06.2014 for Pl.No.75403651.
2.

A copy ANE (L/F-F.416) is available in the case file to cover the proposed
option quantity.

3.

It is certified by the stores department that the performance of the firm


is satisfactory. However, it is seen from the case file that firm has
submitted the material for inspection to Rites in time , But Rites has raised
issue of specification with RDSO which is under clarification from BIS and
material not received in the consignees.

4.

The financial implications of the proposed option clause are as follows:

Original Value of the PO.


(+)30%option clause quantity,where DP available
upto 30.06.14
(+)30% option clause quantity, where DP available
upto 30.08.14
Qty already utilized under option clause
Value of the proposed option Qty i.e 2052 Nos
Total Value of the PO after exercising (+) 30% option

Rs. 2,87,87,490
2052Nos
2113 Nos
Nil
Rs.45,73,170
Rs.3,33,60,660

clause
Competency of Sanction required
Delivery period available upto

COS
30-06-2014

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&.CAO/S&W.
In view of the above,DP for Deco Mica Ltd/Ahmedabad & Wonder
Laminates Pvt ltd,Bishnupur are much ahead i.e 30.08.2014 and the
performance of the firms are not established. Since DP of R B Poly Boards
Ltd is expiring on 30.06.2014 if approved we may process (+)30% option
clause on R B Poly Boards Ltd/Sc and for other two firms we may concur
the proposal after satisfactory performance of supplies.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/SF

FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
26.06.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Procurement of Electrodes class A2- Exercising of (+)30%
option cause on M/s.Classic Electrordes India
ltd/Kolkata.agaisnt Po.No.91087 Dt:17.07.13.
Ref:- Dy.CMM/G Note no. 28 of case file No.PB.76.12.1017.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. It is observed from the case file that the firm has supplied 613656
Mtrs(i.e 60% supplies of the total ordered quantity) for which the
information made available on the file.As regards to supply of 2 ndlot,
delivery period is fast approaching i.e 30.06.2014 as such it may be
confirmed and details furnished as to whether the firm has offered
the material for inspection/dispatched/material received in the depot
and accounted for to guage the performance for invoking option
clause.
2. Finalized T.C.minutes after negotiation for the tender opend on
23.04.14 may be placed on file to assess rate reasonability.
3. A copy of ANE may be placed on file for exercising option clause.
The file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
05.06.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/G
Sub:- Procurement of Finger contact segment- Exercising of
(+)30% option cause on M/s.ACME Engg Works/Kharagpur,
PO.No.91787 Dt:16.07.13.
Ref:- Dy.CMM/Elec Note no. 19,20 of case file No.PA.25.13.4824.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory.Since the firm has not commenced the
supplies, as such the performance of the firm is to be improved upon
to consider option clause.
2. Funds certification during the current financial year may be
furnished.
3. As the quantity required under NS indent is only 800 Nos, it may be
adjusted from the stock available. Since the DP is far ahead, it

would be prudent to watch the market and appropriate action taken


accordingly.
The file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
26.06.2014
Dy.CMM/G
Sub:- Procurement of Decorative Thermosetting synthetic resin
bonded
laminated sheet- Exercising of (+)30% option cause on M/s.
R.B Poly Boards Ltd/SC against PO.NO.29314 & 57029.

Dt.

Ref:- Dy.CMM/G Note no. 40-45 of case file No.PO.75.13.1230.


***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined and the following are the observations.
1. When the material has not been cleared for inspection, how the
performance can be certified as satisfactory and how correct is it
to exercise option clause may be clarified.
This issues with the approval of Dy.CAO/S&W.
The file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
2014

Dt.

27-06-

Dy.CMM/C&W
Sub : Procurement of POH Kit - Exercising of (+)30% Option Clause
on M/s. Knorr Bremse INDIA Pvt Ltd/Faridabad against PO
No.92214 Dt. 27-08-2013 and M/s. Escorts Ltd/Faridabad
PO No.92215 Dt. 27-08-2013.
Ref : Dy.CMM/C&W Note/15 of case file No. PW.38.13.2019.
***
The proposal submitted in connection with exercising of (+)30% Option
Clause on the above subject item Purchase Orders has been examined and
the following are the observations.
1. In terms of Para 3.3 of Rly Bd Lr.No.99/RS(G)/779/5 Dt.12-03-10,
for exercising (+)30% Option clause, the performance of the firm
should be satisfactory. But against PO.No.92214 dt. 27-08-13 the
firm has supplied 40% only out of the total ordered quanity. Since
delivery period is fast approaching i.e., 30-06-2014 as such, it may
be confirmed and details furnished as to whether the firm has offered
the material for inspection/dispatched/material received in the depot
and accounted for to guage the performance for invoking Option
clause.
2. As per F/190c, M/s. Escorts Ltd. has been informed regarding
invoking of (+)30% Option clause. The reasons for not informing the
other firm i.e M/s. Knorr Bremse India Pvt Ltd. may be furnished.

3. A copy of ANE may be placed on file for exercising option clause.

The file is returned herewith.


Encl : case file

( A.K.
GANESHAN )
Sr.AFA / (SF)
For FA&CAO/S&W/SC

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
09.07.2014
Dy.CMM/C&W

Pvt

Sub:- Procurement of FRP Loure Shutter for 2 feet wide windowExercising of (+)30% option cause on M/s.Excel Composites
Ltd/Kolkata,PO.No.91293 Dt:03.06.2013.
Ref:- Dy.CMM/C&W Note no. nil of case file No.PW.30.12.1263.
***

Dt.

The proposal submitted in connection with exercising of (+) 30%


Option Clause on the above subject item Purchase Orders have been
examined and the following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory.Since the firm has supplied 262 Nos
Out of total ordered quantity of 2692 Nos,as such the performance of
the firm is to be improved upon to consider option clause.
2. Even though tender opened on 27.03.2014, the benefit has not been
availed for operation of (+) 30% option clause before the expiry of
original Delivery period,the same may be clarified.
3. A letter was addressed to firm for availing the benefit of (+) 30%
option clause,acceptance letter received from the firm the same may
be placed on file.
4. Finalized T.C minutes for the tender opened on 27.03.2014 to be
placed on file to assess rate reasonability.
5. A copy of ANE may be placed on file for exercising option clause.
The file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 11.07.2014
Dy.CMM/Elec
Sub : Procurement of Railway Carriage Fan Brushless 100 volts.
- Exercising of (+) 30% Option Clause.P.O.No:91625
Dt:03.07.13 on
M/s. Western electric & Trading Co/Delhi
Ref : Your Note No:35 to 36 of Case file No.PE.45.13.1110.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 21.03.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.3590 per number, whereas the
instant Purchase Order rate is Rs.3333.75 per number. In view of the
financial advantage and as recommended by SAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.Western Electric & Trading Co/Delhi for a quantity of
2956 Nos with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.

This issues with the approval of FA&CAO/S&W.


Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1
Sub :- Procurement of CMS Xings 60 Kg 1 in 12 to RDSO Drg No.T4220.
Ref
14/TPC/01

Exercising of (-)30% option clause. P.O.No:05 Dt:20.01.2014.


:- Dy.CE/TP Lr.No.W.503/13/CMS Xings 60 Kg1 in 12/13-

& 05 dated 19.06.14.


-oOoA proposal seeking finance concurrence for operating (-) 30%
option clause on the above subject item, received from Dy.CE/TP, is
placed at Folio-1/C which may kindly be perused.
Two Purchase Order have been placed for procurement of the
above subject item on M/s.Voestalpine VAE VKN india PVt
Ltd/Delhi(AIR-1,73,078.21) for a quantity of 158 sets and
M/s.Vossloh Beekay Castings Ltd/bhilai for a quantity of 213 sets at
a total value of Rs.2,73,46,357.18 with the acceptance of PCE(L/F-N/31).
Now, it is proposed to exercise (-) 30% option clause on P.O No.05
dated 20.01.2014 on M/s. Voestalpine vae vkn India Pvt Ltd/Delhi for a
quantity of 48 sets.
Earlier, the proposal was returned with some observations vide letter
placed at Flag-B, which may kindly be perused. As the executive has not
exercising the (-) 30% option clause on M/s.Vossloh Beekay Castings
Ltd/bhilai and was not intimated accordingly in time before
commencement of supplies
In response to finance observations, Dy.CE/TP resubmitted the
proposal duly stating that as the stock of the material has become NIL
and there was heavy demand from the field to track renewal works on 60
kg rails. The firm have also been apprised of the urgent requirement of
material and firm has taken expeditious action and supplied bulk
quantity with the first quarter itself and completed the order much ahead
of the schedule.Hence (-) 30% option clause could not be operated on
M/s. Vossloh Beekay Castings Ltd/bhilai.
The proposal has been examined and the following are the
observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the


above subject P.O, as the rate received in the tender opened
recently ie on 05.03.2014, from lowest suitable offer is
Rs.1,61,870.30 per set(L/F-383 at N-27), whereas the instant PO

rate is Rs.1,73,078.21 per set. Firm and RDSO has been


informed for invoking of (-)30% quantity vide F-367,368.
(ii)

As the original tender was finalized with SAG tender committee


and accepted by PCE, the above proposal requires the
concurrence of FA&CAO/S&W for exercising (-)30% option
clause.

(iii)

The proposal to exercise (-)30% option clause has the approval


of PCE (Folio-N/43).

In view of the above, if approved we may concur the proposal to


exercise
(-)30% option clause on M/s.Voestalpine Vae Vkn India PVt
Ltd/Delhi
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

No.ASF/Q 01
17.07.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/S&T
Sub:- Procurement of Bed Sheets Handloom bleached-Exercising of
(+)30% option cause on M/s.All India Hanloom fabrics/BB
PO.No.91643 Dt:04.07.2013.
Ref:- Your Note no.37 of case file No.PP.79.12.1448.
***

The proposal submitted in connection with exercising of (+) 30%


Option Clause on the above subject item have been examined and the
following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory.Since the firm has supplied 35,000
Nos Out of total ordered quantity of 1,16,000Nos(ie. 30%only),as such
the performance of the firm is to be improved upon to consider option
clause.
2. Latest rates obtained in neighboring Railways, if not available in this
Railway, may be compared to justify the rate reasonability.

The file is returned herewith.


Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
22.07.2014

Dt.

Dy.CMM/C&W
Sub:- Procurement of Brake Beam support to Casnub-Exercising of
(+)30% option cause on M/s.Melbrow Engg Works Pvt Ltd/Kolk
PO.No.91029 Dt:19.05.2014.
Ref:- Your Note no.19 of case file No.PW.38.13.2053.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item have been examined and the
following are the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5

Dt:12.03.10, for exercising (+)30% option clause, the performance of


the firm should be satisfactory. Since no supplies are made yet by the
firm and DD is far ahead, case may be dealt accordingly duly
fulfilling the above norms before resubmission.
2. A copy of ANE may be placed on file for exercising option clause.
Encl: one case file
(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 30.07.2014
Dy.CMM/S&T
Sub : Procurement of Bed sheets Handloom bleached.Exercising of
(+) 30% Option Clause.P.O.No:91643 Dt:04.07.13 on
M/s. All India Handloom Fabrics mktg co op soc ltd/Mumbai
Ref : Your Note No:32 to 38 of Case file No.PP.79.12.1448.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 17.01.2014) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.167/- per number, whereas the
instant Purchase Order rate is Rs.149/- per number. In view of the
financial advantage and as recommended by SAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.All India Handloom FabricsMktg Co-Op Soc
Ltd/Mumbai for a quantity of 34800Nos with original terms and
conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Proposal is agreed to as there is a financial advantage. However, it is
not clear as to how invoking option clause will improve stock postion.
The stores department instead of invoking option clause should
prevail on supplier to supply material.
2. Obtaining the Sanction of original accepting authority, ie., COS.

3. Ensuring that no lower rates have been received in terms of para


3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
4. Fixing reasonable delivery schedule for the enhanced quantity.
5. Ensuring availability of funds during the current financial year.
6. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

In continuation to the above section notings at N-1 & 2,


Dy.CMM/Genl has resubmitted the proposal( L/F-N-56), in response to this
office observations made vide (L/F- N-55) which may kindly be perused.
Observations as against M/s. R.B.Poly Boards ltd/Sc:
It is stated by Dy.CMM/Genl that M/s. R.B.Poly Boards Ltd/SC has
offered material for inspection by RITES and inspection process is going
on and material is expected to be cleared shortly. However, as per the
firms letter at F/477 of link file so far RITES is not undertaking the
inspection as the clarification form BIs has not received by RITES and
hence requested to change the inspection clause from RITES to
consignee. As such the performance cannot be judged.
Observations as against M/s. Wonder Laminates Pvt Ltd/WB as
against PO No.91819 Dt:18.07.13
1. The proposal is being initiated based on the higher rates received

in the subsequent tender. It is stated that a new tender was


opened on 07.03.14 for the subject item. The All inclusive rate
accepted in the new tender is Rs.1224.63 per No. As the rates of
instant PO is lower than the subsequent tender and financially
beneficial to Railways and AGM has recommended to invoke
(+)30% option clause (L/F-N-447) on the instant PO for a total
quantity of 898 Nos. by exercising Option clause will be economical
to railways.The DP of M/s. Wonder Laminates is expiring on

31.08.2014 for Pl.No.75403419. financial implication is 1224.631098=126.63 per number.


2.

A copy ANE (L/F-F.416) is available in the case file to cover the proposed
option quantity.

3.

It is certified by the stores department that the performance of the firm


is satisfactory. It is seen from the case file that firm has submitted the
entire ordered quantity with the original DP.

The financial implications of the proposed option clause are as follows:

Original Value of the PO.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required

Rs.2,87,87,49
0.
2992 Nos
898 Nos
Nil
898 Nos
Rs.9,86,004
Rs.2,97,73,49
4
COS

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&.CAO/S&W.
In view of the above,DP for Deco Mica Ltd/Ahmedabad & Wonder
Laminates Pvt ltd,Bishnupur are much ahead i.e 30.08.2014 and the
performance of the firms are not established. Since DP of R B Poly Boards
Ltd is expiring on 30.06.2014 if approved we may process (+)30% option
clause on R B Poly Boards Ltd/Sc and for other two firms we may concur
the proposal after satisfactory performance of supplies.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/SF

FA&CAO/S&W

Review of Quantity has already been done in the subsequent


tender, as per TCP at (L/F-F-82) duly taking 37980 Kg being proposed for

coverage under +30% option clause and the same has been accepted by
competent authority at (L/F-F-79). Further stated that Delivery period will
be given as 30.06.2014 with payment after 01.04.2014.
Submitted for kind perusal and order please.

OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 11.08.2014
Dy.CMM/S&T
Sub : Procurement of Decorative Thermosetting synthetic resin
bonded
laminated sheet..- Exercising of (+) 30% Option
clause.P.O.Nos:91819
Dt:18.07.13(Pl.No.75403419 star dust grey)on M/s. Wonder
Laminates
Pvt Ltd/WB.
Ref : Your Note No:56 of Case file No.Po.75.13.1230.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 07.03.14) for the above subject item is on higher side. The
rate accepted from lowest offer is Rs.1224.63 per number, whereas the
instant Purchase Order rate is Rs.1098 per number. In view of the
financial advantage and as recommended by SAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.Wonder Laminates Pvt Ltd/WB for a quantity of
898Nos with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1 Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3..

Fixing reasonable delivery schedule for the enhanced quantity.

4.

Ensuring availability of funds during the current financial year.

5..

Getting the MPOs vetted by Stores Finance section.

As regards to M/s. R.B.Poly Boards Ltd/SC, since performance is not


established and any delay in inspection cannot be taken as satisfactory
performance as such, option clause against M/s.R.B.Poly Boards is not
agreed to. Hence, it is advised to resubmit the case after satisfactory
performance.
Contd2
-2As

regards

to

Po.No.91817

Dt:18.07.13

on

M/s.

Deco

Mca

Ltd/Ahmedabad, since DP is expiring on 30.08.14, you are advised to


process 30% option clause well in advance with complete details viz.
performance etc. so as to avail the benefit of option clause as
recommended TC in the subsequent tender.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/83
Sub : Procurement of Shank wear plate. Exercising of (+)
30% Option Clause on M/s.Melbrow Engg works Pvt
Ltd/Kolkata(P.O No:93132 Dt: 18.12.13)
Ref : Dy.CMM/C&Ws Note No:15 of Case file No.
PW.38.13.1237.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. Melbrow Engg Works Pvt Ltd/Kolkata (AIRRs.86.40/- per No.) with the acceptance of Dy.CMM for a total value of
Rs.15,38,179.20(L/F-N/10).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the demand is available.

The proposal has been examined and the following are the
observations:
1 It is stated that a new tender was opened on 01.08.2014 in which the
lowest quoted rate is Rs.125.80 per Number(AIR) (L/F-161), whereas
the subject POs rate is Rs.86.40 per number. The new tender is not
yet finalized. However, as the Delivery Period of the firm M/s.Melbrow
Engg Works Pvt Ltd/Kolkata is about to expire on 25.08.14, Stores
department is proposing to exercise (+)30% option clause on the
above firm. As there is a rate difference of Rs.39.40 per number, it is
financially advantageous to Railways in exercising quantity option
clause on the above firm.
2.1
Necessary indent is available in the case file to cover the
proposed option quantity.
3.1
It is certified by the stores department that the performance
of the firm is satisfactory. It is observed from the History sheet
that the firm has supplied 13348 Nos out of the total ordered
quantity of 17803 Nos and DD is ahead i.e 25.08.2014 for the
balance quantity.(supplied 75% quantity).
3.2
4.

Delivery period is upto 25.08.2014.

The financial implications of the proposed option clause are as


follows:

Original Value of the PO.

2
3
4
5
6
7

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
15,38,179.20
17,803Nos
5,341 Nos
Nil
5,341 Nos
Rs.4,61,462.4
Rs.19,99,641.
6
Dy.CMM
25.08.2014

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., Dy.CMM. As such,
the proposal requires the concurrence of Sr.AFA/SF.

In view of the financial advantage, if approved we may concur the


above proposal, subject to decreasing the 5341 Nos in the subsequent
tender.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

N/42
Operation of option clause should be in tune with Boards
Lr.No.99/RS(G)/779/5 dated 12.03.2010. However, it is observed that vide
N/39, M/s. Sunder Synthetics has been recommended for partial operation
of option clause, based on which a proposal has been sent for finance
concurrence, which is not acceptable as it is in deviation to Boards
directives.
The balance net procurable quantity in this tender ought to have
been offered to Part I source i.e. M/s.Sunder synthetic at the first instance
with the option to increase the net procurable quantity itself. In view of the
fact that the counter offer to part II souce was not accepted by the firm.
The course of action available is as under:
1. To prevail over M/s. Sunder synthetic to except the balance net
procurable quantity at his orginal accepted rate for which PO has
been issued duly convening a supplementary T.C.
2. Invoking of option clause as per the guidelines of Rly Board letter
dated 12.03.10 after compliance of various parameters thereof.
File is returned herewith.
Sr.AFA/SF

N/42
Operation of option clause should be in tune with Boards
Lr.No.99/RS(G)/779/5 dated 12.03.2010. However, it is observed that vide
N/39, it has been recommended for partial operation of option clause on
M/s. Sunder Synthetics,based on which a proposal has been sent for
finance concurrence, which is not acceptable as it is in deviation to Boards
directives as stated above.
The balance net procurable quantity in this tender ought to have
been offered to M/s.Sunder synthetic at the first instance itself with a
condition to increase upto the net procurable quantity during the validity
of the offer i.e 07.06.14. M/s. Deco meca has conveyed unwillingness to
accept counter offer much in advance to the validity of the tender.
In view of the above, necessary suitable action needs to be taken to
prevail over M/s. Sunder Synthetics for extending the validity of offer
further and balance net procurement quantity finalized by convening the
TC.
File is returned herewith.
Sr.AFA/SF

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 22.08.2014
Dy.CMM/C&W
Sub : Procurement of Shank wear plate. Exercising of (+) 30%
Option
Clause on M/s.Melbrow Engg works Pvt Ltd/Kolkata(P.O
No:93132 Dt:

18.12.13)
Ref : Dy.CMM/C&Ws Note No:15 of Case file No. PW.38.13.1237.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 01.08.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.125.80 per number, whereas the
instant Purchase Order rate is Rs.86.40 per number. In view of the
financial advantage , finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Melbrow Engg Works Pvt
ltd/Kolkata for a quantity of 5341 Nos with original terms and
conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., Dy.CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Conditions stipulated in the instant PO.
6. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1
Sub : Procurement of Carbon brush block for Hitachiunder (+) 30%
Option
Clause.
Ref : Dy.CMM/Elecs Note No:28,29,32,33 of Case file No. PE.25.13.4582.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/Elec,
which is placed at Folio-117/C may kindly be perused.
For procurement of the above subject item three Purchase Order
have been placed on (i) M/s. Mercen India Pvt Ltd/Bangalore Part-I
(AIR- Rs.255.45 per No.)-Development order (ii) M/s.Assam Carbon
Products Limited /Patancheru Part-I (AIR Rs.282.72) & (iii)
M/s.Mercen India Pvt Ltd/Bangalore Part-II (AIR- Rs.255.45 per
No.)-Regular order with the acceptance of CMM for a total value of
Rs.1,30,92,125.43 (L/F-N/22).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above two Part I source firms M/s. Mercen India Pvt
Ltd/SBC,M/s. Assam Carbon Products Ltd/Patancheru and on M/s. Mercen
India Pvt Ltd/SBC Pt.II will be exercised after satisfactory performance.
The proposal has been examined and the following are the
observations:
1.1
Stores department has stated that a new tender was opened
on 07.03.2014. It is observed that the rates received in new tender
are on higher side (AIR- 285.10 per No for development order), (AIR
Rs.301.12 per unit for regular order). As such, JAG tender
committee of the subsequent tender recommended to exercise
(+)30% option clause on LPOs ie., on the above three POs.(Rate
Diff is 285.10-255.45=29.65 per unit for development order
purchase orders and 301.12-282.72=18.4 per unit for
regular order purchase orders)
2.1
It is certified by the stores department that the performance
of the firms is
satisfactory. The firm M/s. Assam Carbon
Products Limited/Patancheru Part-I
has supplied entire total
ordered quantity (100% supplied)& M/s. Mercen India Pvt

Ltd/Bangalore Part-I have supplied12000 Nos out of 21353 total


ordered quantity ie. 56% of the originally ordered quantity.
3.1 The financial implications of the proposed option clause are
as follows:
1

Original Value of the three POs.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

6.0

Rs.1,30,92,125.
43 .
47,452 Nos
14,236 Nos
Nil
10,677 Nos
Rs.28,43,909.82
Rs.15936035.25
CMM
28.08.2014

Necessary ANE is available in the case file to cover the above


option quantity for 14,236Nos.
The proposal has the Administrative approval of CMM (Folio-N/29)
for exercising option clause on the above three firms.

7.0

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As
such, the proposal requires the concurrence of Dy.CAO/S&W.

In view of the financial advantage involved, if approved we may


concur the proposal on two firms i.e. M/s. Mercen India Pvt Ltd/SBC Pt.I
for a quantity of 6406Nos & M/s. Assam Carbon Products Ltd/Patancheru
for a quantity of 4271 Nos.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

N/28
Option
clause
has
to
be
exercised
within
the
original/extended delivery period and should be valid on date. As
the DP in this case has expired on 31.05.14 a proposal may be
mooted duly not extending but refixing the currecy of the contract
for the +30% option clause quantity in view of the financial
advatange to Rlys.
Further, though the LOA in this regard has been addressed to
firm on 02.05.14, an acceptance/confirmation letter from firm is not
available on file.
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01
25.08.2014

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/S&T
Sub:- Procurement of Relay Plug in type -Exercising of (+)30% option
clause on M/s.Urban Engg Association Pvt Ltd/Kolkata
PO.No.49098 Dt:18.07.14.

Ref:- Your Note no.14 to 16 of case file No.PS.56.14.5004.


***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item have been examined and the
following are the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5

Dt:12.03.10, for exercising (+)30% option clause, the performance of


the firm should be satisfactory. Since no supplies are made yet by the
firm and DD is far ahead, case may be dealt accordingly duly
fulfilling the above norms before resubmission.
2. A copy of indent duly vetted by associate finance may be placed on
file for exercising option clause.
3. The rate reasonability comparision is done with southern Railway,
tender opened on 16.04.14 i.e before the acceptance of present tender
i.e 22.05.14, which is not correct. As such, it is advised that latest
rates(after the date of finalization of present tender) obtained in
neighboring Railways, if not available in this Railway, may be compared
to justify the rate reasonability.

Encl: one case file


(A.K.GANESHAN)
Sr.AFA/SF
For
FA&CAO/S&W

NOTE/1
Sub : Procurement of Hanger Block for Bolster suspension under
(+) 30%

Option Clause against M/s. Sarita Forgings Pvt Ltd/Ludhiana &


M/s.Emson
Tools Manufacturing corp ltd/Ludhiana.
Ref : Dy.CMM/C&Ws Note No:35,36,45 of Case file No. PC.30.12.1192.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item two Purchase Order
have been placed on (i) M/s. Emson Tools Mfg Corpn /Ludhina,Part-I
(AIR- Rs.160.20 per No.) (ii) M/s.Sarita Forgings Pvt Ltd/Ludhiana
Part-I (AIR Rs.160.2 per No) with the acceptance of CMM/M for a total
value of Rs.74,98,000.80 (L/F-N/18).
Now, it is proposed to exercise (+)30% quantity option clause on
the above firms as the demand is available for the subject item.
The proposal has been examined and the following are the
observations:
1.1
Stores department has stated that a new tender was opened
on 28.02.2014 for the subject item. The All inclusive rate accepted
in the new tender is Rs.176(AIR)per No. As the rates of instant PO is
Rs.160.20,lower than the subsequent tender. In view of the
financial advantage when compared with the new tender rates, the
proposal is being initiated to exercise option clause on the above
firms for a quantity of 14,042 Nos against M/s. Emson Tools Mfg
Corpn(8425 Nos) & M/s.Sarita Forgings Pvt Ltd(5617 Nos).
2.

It is certified by the stores department that the performance of the


firm is
satisfactory. M/s. Emson Tools Mfg Corpn has supplied
26950 nos out of 28082 Nos total ordered quantity( supplied 96%).
M/s. Sarita Forgings Pvt Ltd has supplied 12359Nos out of 18722
Nos total ordered quantity(supplied66%).

3.

Delivery period is available upto 08.09.14 for M/s. Emson Tools


Manufacturing corpn ltd/Ludhina, 07.10.14 for M/s. Sarita forgings
Pvt ltd/ludhaina.

3.0 The financial implications of the proposed option clause are as


follows:
1

Original Value of the PO.

Rs.74,98,000.

80.
2

Original Qty in the POs.

(+) 30% option quantity

4
5
6

Qty already utilized under option clause


Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

46,804
Nos
14,042
Nos
Nil
14,042 Nos
Rs.22,49,528.
4
Rs.97,47,529.
2
CMM

NOTE/2
6.0
Necessary ANE is available (L/F-412) in the case file to cover
the proposed option quantity.
7.0
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie., CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
8.0
In view of the financial advantage involved, if approved we
may concur the proposal
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 26.08.2014
Dy.CMM/C&W
Sub : Procurement of Hanger Block for Bolster suspension.
Exercising of (+)
30% Option Clause on M/s.Emson Tools Manufacturing corpn
Ltd/Ludhiana against Po.No.91348 Dt:10.06.13,M/s. Sarita
Forgings
Pvt Ltd/Ludhiana against PO.No.91344 Dt:10.06.13.
Ref : Dy.CMM/C&Ws Note No:35,36,45 of Case file No.
PC.30.12.1192.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 28.02.14) for the above subject item are on higher side. The
rate received from lowest technically suitable offer is Rs.170/- per
number, whereas the instant Purchase Orders rate is Rs.160.20 per
number. In view of the financial advantage to Railways, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
(i) M/s. Emson Tools Manufacturing corpn Ltd/Ludhiana for a
quantity of 8,425 Nos, (ii) M/s.Sarita Forgings Pvt Ltd/Ludhaian for
a quantity of 5,617 Nos with original terms and conditions with in
Delivery Period.Total PO Value including the additional (+)30% quantity
works out to Rs. 97,47,529.2.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3. Fixing reasonable delivery schedule for the enhanced quantity.


4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.

( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 27.08.2014
Dy.CMM/Elec
Sub : Procurement of Carbon brush block for Hitachi. Exercising
of (+)
30% Option Clause on M/s.Mercen India Pvt Ltd/Bangalore
Pt.I, M/s.
Assam Carbon Products Ltd/Patancheru Pt.I
Ref : Dy.CMM/Elecs Note No:28,29,32,33 of Case file No.
PW.38.13.1237.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 28.02.14) for the above subject item are on higher side. The
rate received from lowest technically suitable offer is Rs.170 per number,
whereas the instant Purchase Orders rate is Rs.160.20 per number. In
view of the financial advantage to Railways, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on (i) M/s.
Frontier alloy steels Ltd, Kanpur for a quantity of 733 Nos, (ii)

M/s.Rausheena Udyog Ltd, Kolkata for a quantity of 90 Nos and on


(iii) M/s.Rine Engineering Ltd, Baddi for a quantity of 73 Nos with
original terms and conditions with in Delivery Period.
Total PO Value including the additional (+)30% quantity works out
to Rs. 1,59,36,035.25/-.
The above concurrence is subject to the following:
6. Obtaining the Sanction of original accepting authority, ie., Dy.CMM.
7. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
8. Fixing reasonable delivery schedule for the enhanced quantity.
9. Ensuring availability of funds during the current financial year.
10.

Getting the MPOs vetted by Stores Finance section by

27.08.14 positively.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

Sub : Procurement of Outer Spring for Casnub.under (+)


30% Option
Clause on M/s. Rahul Precision Works Pvt
Ltd/Pithampur
(P.O.No:91813 Dt:18.07.13)
Ref
: Dy.CMM/C&Ws Note No:26 of Case file No.
PW.38.13.2123.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item three Purchase
Order have been placed on two firms i.e.M/s.Rahul Precision Works

Pvt Ltd/Pithampur(AIR-Rs.777.52 per Number) and M/s. Frontier


Springs Ltd/Kanpur(AIR- Rs. 777.52) with the acceptance of CMM/M
for a total value of Rs.66,56,348.72(L/F-N/14).
Now, it is proposed to exercise (+)30% quantity option clause
on M/s. Rahul Precision Works Pvt Ltd/Pithampur only against
Po.NO.91813 dt:18.07.13 as the demand is available for the subject
item, as against other firm M/s. Frontier Springs Ltd/Kanpur delivery
period expired on 25.11.2013 well before the opening of
subsequent tender as such option clause not exercised.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 14.08.2014 in which
the lowest firm has quoted rate of Rs.1060.50 per Number(AIR)
(L/F-232), whereas the subject POs rate is Rs.777.52 per number.
The new tender is not yet finalized. However, as the Delivery Period
of the firm M/s.Rahul Precision Works Pvt Ltd/Pithampur is about to
expire on 25.09.14, Stores department is proposing to exercise
(+)30% option clause on the above firm. As there is a rate
difference of Rs.282.98 per number, it is financially advantageous
to Railways in exercising quantity option clause on the above firm.
2. Performance of the firm is certified as satisfactory. Howerver, it is
observed from stock position slip(L/F.335) that the frim has supplied
2526 Nos out of 5137Nos i.e suuplied 49% and for the supply of
balance quantity DP is available upto 25
3. .09.2014.
4. Necessary ANE is available in the case file to cover the proposed
option clause.
5. CMM approval was obtained to operate +30% option clause.

6. The financial implications of the proposed option clause are as


follows:

1
2
3
4
5
6
7

8
9

Original Value of the PO.

Rs.
66,56,348.72
Original Qty in the PO.
5137 Nos
(+) 30% option quantity
1541Nos
Qty already utilized under option
Nil
clause
Now proposed qty under option
1541 Nos
clause
Value of the proposed option Qty
Rs.11,98,158.3
2
Total Value of the POs after Rs.78,54,507.0
exercising (+) 30% option clause 4
(including already option clause
exercised POs)
Competency of Sanction required
CMM
Delivery period available upto
25.09.2014

With the exercise of above option clause, the revised value


will be with in the powers of original accepting authority ie., CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage involved in the present
option clause, if approved we may concur the proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1

Sub : Procurement of Knuckle Pivot Pin with washerExercising of


(+) 30% Option Clause against M/s. Melbrow Engg
Works Pvt
Ltd,P.O.No:92819 Dt:05.11.13.
Ref :Dy.CMM/C&Ws Note:17 to 20 of Case file
No.PW.38.3.1267.
oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase
Order has been placed on M/s.Melbrow Engg Works Pvt
Ltd/Kolkata at an all inclusive rate of Rs.209.6 per number and at
a total value of Rs. 38,35,260.80 with the acceptance of CMM (L/FN/11).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 19.08.2014 in which
the lowest firm has quoted rate of Rs.234.55(AIR) per number for
MFT and Rs.233.85 for RYPS (L/F-347), whereas the subject POs
rate is Rs.209.6 per number, lower than the subsequent tender. In
view of the financial advantage TC recommends to operate 30%
option clause on the above firm. As there is a rate difference of
Rs.24.95 per number, it is financially advantageous to Railways in
exercising quantity option clause on the above firm.
2. It is certified by the stores department that the performance of the
firm is
satisfactory. The firm has supplied the entire ordered
quantity within the delivery period. DP is extended/refixed upto
28.11.2014.
3.0
The financial implications of the proposed option clause are
as follows:
1

Original Value of the PO.

Original Qty in the POs.

Rs.38,35,260.
80
18298 Nos

3
4
5
6

(+) 30% option quantity


Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

5,489 Nos
Nil
5,489 Nos
Rs.11,50,494.
4
Rs.49,85,755.
2
CMM

NOTE/2
4.1
Necessary ANE is available (L/F-353) in the case file to cover
the proposed option quantity.
5.1
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie., CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage and as per the recommendation
in the subsequent TC, if approved we may concur the proposal to
exercise (+)30% option clause on the above firm for a quantity of
5489 Nos.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd
FLOOR,SECUNDERABAD
No.ASF/Q 01
Dt. 08.09.2014
Dy.CMM/S&T
Sub : Procurement of underground Railway jelly filled 6
quadd cables
for signaliing and telecom installation etc.Exercising
of (+) 30%.
Option Clause on M/s.Sri Ram cables Pvt Ltd/Bhaiwadi
Alwar
(Pt.I) (P.O No:90665 Dt: 02.04.14,54010
dt:21.03.14,29063
dt:24.03.14)
Ref : Your Note No:88 to 90 of Case file No.PS.56.12.5248.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.

It is observed that the rates received in subsequent tender (ie.,


opened in E.Cos.Rly & NF Rly on 21.08.14 &18.08.14 respectively) for the
above subject item are on higher side against Part I firm only. The rate
received from Lowest tenderer is Rs.2,71,002.25 per Km(AIR), whereas
the instant Purchase Order rate is Rs.2,37,073.35 per Km. In view of the
financial advantage, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s. Sri Ram Cables Pvt
Ltd/Bhaiwadi Alwar Pt.I firm for a quantity of 121 Km only against
PO.NO.90665,54010,29063 dt:02.04,21.03,24.03.14 with original
terms and conditions with in Delivery Period.The Total value of the
purchase order after exercising +30% O/C is Rs.21,34,94,475.13
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., GM.

(ii)

Ensuring that no lower rates have been received in terms of para


3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)
(iv)
(v)

Fixing reasonable delivery schedule for the enhanced quantity.


Ensuring availability of funds during the current financial year.
Getting the MPOs vetted by Stores Finance section.

Further,against Part II firm(M/s. Gee Cab Inds Ltd/Rajasthan,


as the rates of subsequent tender is lower than the instant PO you are
advised to review the case and (-)30% option clause may be
processed immediately.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 09.09.2014
Dy.CMM/C&W
Sub : Procurement of Outer Spring for casnub. Exercising of (+)
30%
Option Clause on M/s.Rahul Precision Works Pvt
Ltd/Pithampur
(P.O No:91813 Dt:18.07.13)
Ref : Dy.CMM/C&Ws Note No:26 of Case file No. PW.38.13.2123.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 14.08.14) for the above subject item are on higher side. The
rate quoted by the lowest offer is Rs.1060.50 per number, whereas the
instant Purchase Order rate is Rs.777.52 per number. In view of the
financial advantage , finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Rahul Precision Works Pvt
Ltd/Pithampur for a quantity of 1541 Nos against PO.NO.91813
dt:18.07.13with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Conditions stipulated in the instant PO.
6. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.

( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

FINANCIAL

For

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 15.09.2014
Dy.CMM/DSL
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:91012
Dt:02.05.13 on M/s.
G.S.Products/Dehradun.
Ref : Your Note No:36 to 42 of Case file No. DSL/10/12/2855.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 10.04.2014) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.2227.05 each, whereas the instant
Purchase Order rate is Rs.2121 per number. In view of the financial
advantage and as recommended by SAG tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.G.S.Products, Dehradun for a quantity of 10,140 Nos with
original terms and conditions with in Delivery Period. The total value of
the PO after exercising +30% option clause is Rs. 9,31,96,740(though the
values of the tender finalized is less, the instant case was accepted by
GM being the original accepting authority, the sanction is to be obtained
from GM for invoking option clause).
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., GM

(ii)

Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iv)

Ensuring availability of funds during the current financial year.

(v)

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANES
HAN )
Sr.AFA/SF
For FA&CAO/S&W.
Sub : Procurement of Modified ElastomericPads..under (+)
30% Option
Clause on M/s.Howrah forgings
Ltd/Kolkata(P.O.No:91007
Dt:01.05.13)
Ref
: Dy.CMM/C&Ws Note No:72-73 of Case file No.
PW.38.12.1145.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item Four Purchase
Order have been placed on four firms i.e.M/s.M/s. Aryan Exporters P
ltd/Lucknow(Part.I)(AIR-Rs.973.32per
Number),
M/s.Tayal
and
Co/Mohali
(Part
I)(AIRRs.973.32),
M/s.Howrah
Forgings
Ltd/Kolkata(Part
II)(AIR-868.04)
and
M/s.
MGM
Rubber
Company/Kolkata(Part II)(AIR-868.04) with the acceptance of COs
for a total value of Rs.8,91,15,619.96(L/F-N/36).
Now, it is proposed to exercise (+)30% quantity option clause
on M/s. Howrah Forgings Ltd/Kolkata, PO.NO.91007 dt:01.05.13
only as the demand is available for the subject item and as per the
recommendations of subsequent TC, as against other firms M/s.
Aryan Exporters P Ltd/Lucknow rate is high compared to Part II, M/s.
Tayal and co/Mohali defaulter firm supplies not made, M/s. MGM

Rubber company/Kolkata delivery period expired on 31.08.13


before the opening of subsequent tender as such option clause not
exercised.
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the recommendations of
the subsequent tender committee. It is stated that a new tender
was opened on 26.02.2014 for the subject item. The All inclusive
rate accepted in the new tender is Rs.920.23 each (AIR). As the
rates of instant PO is (AIR-868.04) lower than the subsequent
tender and financially beneficial to Railways, SAG tender committee
has recommended to invoke (+)30% option clause (L/F-F/492) on
the instant PO for a total quantity of 4,235 Nos, which was
accepted by COS.
2.

Performance of the firm is certified as satisfactory. The firm has


supplied the entire ordered quantity.
3. Necessary ANE is available in the case file to cover the proposed
option clause.
4. Earlier, this office has returned the proposal for sending the
proposal duly refixing the DP. In response Dy.CMM/C&W has refixed
the DP for the subject PO upto 31.10.14 and the same is approved
by COS (L/F/N-73).
5. CMM approval was obtained to operate +30% option clause.

6. The financial implications of the proposed option clause are as


follows:
1
2
3
4
5

Original Value of the PO.


Rs.8,91,15,619.96
Original Qty in the PO.
14,115 Nos
(+) 30% option quantity
4,235Nos
Qty already utilized under option
Nil
clause
Now proposed qty under option
4,235 Nos
clause

6
7

8
9

Value of the proposed option Qty


Rs.36,76,149.40
Total Value of the POs after Rs.9,27,91,769.36
exercising (+) 30% option clause
(including already option clause
exercised POs)
Competency of Sanction required
COS
Delivery period available upto
31.10.2014

With the exercise of above option clause, the revised value


will be with in the powers of original accepting authority ie., COS.
As such, the proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage involved and as per the
recommendations of SAG TC, if approved we may concur the
proposal.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL ADVISER

AND

OFFICE OF THE
CHIEF ACCOUNTS OFFICER (S&W),

STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,


SECUNDERABAD
No.ASF/Q 01
Dt. 01.10.2014
Dy.CMM/S&T
Sub : Procurement of under ground signaling 30 core * 1.5sqmm
cable.
- Exercising of (+) 30% Option Clause.on M/s.Krishna
Udyog/Sirmour.
Ref : Your Note No:87 to 90 of Case file No.PS.56.12.1174.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 19.08.14) for the above subject item are on higher side. The
rate quoted by the lowest offer is Rs.4,42,908.45 per Km, whereas the
instant Purchase Order rate is Rs.3,74,722.20 per Km. In view of the
financial advantage and as recommended by SAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.Krishna Udyog/Sirmour against PO.No.48162,62515
54060,29360,54059,49201,23069,26050,36037,92063 dt:07.08.13, for a
quantity of 54 Kms with original terms and conditions with in Delivery
Period. The total value of the PO after exercising +30% option clause is
Rs. 26,92,64,505.98.
The above concurrence is subject to the following:
(i)
(ii)

Obtaining the Sanction of original accepting authority, ie., GM


Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)
(iv)
(v)

Fixing reasonable delivery schedule for the enhanced quantity.


Ensuring availability of funds during the current financial year.
Getting the MPOs vetted by Stores Finance section.

Further, as regards to DP extension, prior finance concurrence


ought to have been taken in terms of I.No.5 Note i(b) of SOP for
extension of DP in this case being AGM acceptance case. However, as the
extension is granted with full LD and DC the case is treated as fait
accomply and post facto finance concurrence is hereby signified for
extension of DP with full LD and DC.
Sanction of GM may be obtained as above.
This issues with the approval of FA&CAO.
Encl : The concerned file.
( A.K.GANES
HAN )
Sr.AFA/SF
For FA&CAO/S&W.
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 26.09.2014
Dy.CMM/C&W
Sub : Procurement of Modified Elastomeric Pads- Exercising of
(+) 30%
Option Clause.P.O.No:91007 Dt:01.05.13 on M/s. Howrah
Forgings
Ltd/Kolkata.
Ref : Your Note No:72 to74 of Case file No. PW.38.12.1145.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 26.02.2014) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.920.23 each, whereas the instant
Purchase Order rate is Rs.868.04 per number. In view of the financial
advantage and as recommended by SAG tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on

M/s.Howrah Forgings Ltd/Kolkata for a quantity of 4,235 Nos with


original terms and conditions with in Delivery Period. The total value of
the PO after exercising +30% option clause is Rs. 9,27,91,769.36.
The above concurrence is subject to the following:
(i)

Obtaining the Sanction of original accepting authority, ie., COS

(ii) Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iv) .

Ensuring availability of funds during the current financial year.

(v).

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANES
HAN )
Sr.AFA/SF
For FA&CAO/S&W.
OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,SECUNDERABAD

No.ASF/Q 01
10.10.2014

Dt.

Dy.CE/TP
Sub :against

Procurement of Buffer Plunger, imposing of lower rate

PO.NO.91239 dt:29.05.13 on M/s. Global Alloy Pvt


Ltd/Kanpur.
Ref :- Your note No.17 to 23 of case file No.PC.30.12.2378.
Oo-

The proposal received in connection with operating lower rates on


the above subject purchase orders has been examined.
As the firm has supplied the entire ordered quantity within the date
of issue of letter for imposing lower rate i.e 10.03.2014, except 432 Nos
which was supplied after 17.03.2014. Hence, Finance concurrence is
hereby signified for 432 Nos of Buffer Plunger against PO.NO.91239 dated
29.05.13 in favour of M/s.Global Alloy Pvt Ltd/Kanpur duly imposing lower
rates as per tender opened on 26.02.2014 i.e @ Rs.40000.30 per No(AIR)
for the quantity of 432 Nos.
This office finance concurrence letter No. ASF/QO1 dated 20.05.2014 is
withdrawn.
This issue with the approval of Dy.CAO/S&W.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For
FA&CAO/S&W

NOTE/1
Sub : Procurement of Diesel Locos starter battery 8V 450
AH(LM)
under (+) 30% Option Clause (P.O No:92373 Dt:
13.09.13 & 92374
Dt:13.09.13)
Ref : Dy.CMM/Elecs Note No:22 to 24 of Case file No.
PE.45.13.1104.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/Elec, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase
Orders have been placed on M/s.Mysore Thermo Electric P
Ltd/SBC & on M/s.Celetek Industries P Ltd/SBC(AIRRs.35158.90 per No.) with the acceptance of CMM for a total
value of Rs.1,63,84,047.40 (L/F-N/18).

Now, Stores branch is proposing to exercise (+)30% quantity


option clause on the above two firms as recommended by
subsequent tender committee.
The proposal has been examined and the following are the
observations:
1. Stores department has stated that a new tender was opened on
20.06.2014 for the subject item. The All inclusive rate accepted in
the new tender is Rs.36192.19 (AIR)per No. As the rates of instant
PO is Rs.35158.90,lower than the subsequent tender. In view of
the financial advantage when compared with the new tender rates,
the proposal is being initiated to exercise option clause on the
above firms for a quantity of 140 Nos against M/s.Mysore Thermo
Electric P Ltd/SBC(84 Nos) & M/s.Celetek Industries P Ltd/SBC(56
Nos). Difference in rate is Rs.1033.29per number.
2. It is certified by the stores department that the performance of the
firm is satisfactory. M/s. Mysore Thermo electrick P Ltd/SBC has
supplied 163 Nos out of 280 Nos total ordered quantity( supplied
58%). M/s. Celtek Industries P Ltd/SBC has supplied 83Nos out of
186 Nos total ordered quantity(supplied 45%) and Delivery
schedule is ahead for the balance quanity i.e 31.12.14.
3.0 The financial implications of the proposed option clause are as
follows:
1

Original Value of the PO.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required
Delivery period upto

8
9

NOTE/2

Rs.1,63,84,047
.40
466 Nos
140 Nos
Nil
140 Nos
Rs.49,22,246
Rs.2,13,06,293
.4
COS
31.12.2014

9.0
Necessary ANE is available (L/F-226 to 230) in the case file to
cover the proposed option quantity.
10.0 With the exercise of above option clause, the revised value
will change the powers of original accepting authority ie., COS. As
such, the proposal requires the concurrence of FA&CAO/S&W.
11.0 In view of the financial advantage involved, if approved we
may concur the proposal
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub : Procurement of FRP Loure Shutter.. - Exercising of (+)
30%
Option Clause.P.O.No:91293 Dt:03.06.13, M/s.Excel
Composites
Pvt Ltd/Kolkata.
Ref :Dy.CMM/C&Ws Note No:21 to 27 of Case file
No.PW.30.12.1263.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase
Order has been placed on M/s.Excel Composites Pvt
Ltd/Kolkata, M/s. Fibro Plastichem india pvt Ltd/Kolkata(DP
expired before opening of subsequent tender i.e.
30.11.2013, hence option clause not operated) at an all
inclusive rate of Rs.836.30 per number and at a total value of Rs.
25,54,896.5 with the acceptance of CMM (L/F-N/10).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.
The proposal has been examined and the following are the
observations:
1.0
The
proposal
is
being
initiated
based
on
the
recommendations of the subsequent tender committee. It is stated
that a new tender was opened on 127.03.2014 for the subject item.
The All inclusive rate accepted in the new tender is Rs.895.34 for
MFT and LGD depot and Rs.935.34 for TPTY, BZA,GTPL. As the rates
of instant PO is lower than the subsequent tender and financially
beneficial to Railways, TC has recommended to invoke (+)30%
option clause (L/F-332) on the instant PO for a total quantity of 917
Nos. Further the latest rates downloaded from IREPS site for the
subject item is Rs. 914.84 which is higher than LPO rate i.e 836.30.
2.0
It is certified by the stores department that the performance
of the firm is
satisfactory. The firm has supplied 1048 Nos
against ordered quantity of 3055 Nos. (supplied 34%). DP is ahead
for the balance quantity i.e 31.12.2014.

3.0
The financial implications of the proposed option clause are
as follows:
1

Original Value of the PO.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity available
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required

Rs.42,58,439.
60.
5092 Nos
917 Nos
Nil
917 Nos
Rs.7,66,887.1
Rs.50,25,326.
7
CMM

NOTE/2
4.0
Necessary ANE is available (L/F-340) in the case file to cover
the proposed option quantity.
5.0
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie., CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
In view of the poor performance of the firm, put up for orders
whether to concur the proposal to exercise (+)30% option clause on the
above firm or otherwise please.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub : Procurement of Lead Acid battery set 6V-120 Ah
exercising of (+) 30% Option Clause against
Po.No:90903 dt:06.05.14 on M/s. HBL power systems
Ltd/HYd
Ref : Dy.CMM/Elecs Note No: 27 to 29 of Case file
No.PE.45.13.1089.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/Elec, is placed at folio-1/C, which may kindly be perused.
For procurement of the above subject item One Purchase
Order has been placed on M/s.HBL Power Systems Ltd/HYD at
an all inclusive rate of Rs.1,14,653.38 per set(updated price is
1,05,331.61)and at a total value of Rs. 3,53,13,241.04 with the
acceptance of COS (L/F-N/18).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.

The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 24.06.2014 in which
the rates received are on higher side ie.,Part I- Rs.1,09,362.62 per
set. The instant POs updated rates Part I firm is Rs.1,05,331.61
per set,which is less in rate by Rs.4031.01 per set. The new tender
has been finalized by the SAG tender committee duly
recommending to exercise (+)30% option clause on the instant
Purchase Orders (L/F-282). As such, Stores department is proposing
to exercise (+)30% option clause on the instant Purchase Orders.
As there is a rate difference of Rs.4031.01 per set, it is financially
advantageous to Railways in exercising (+)30% quantity option
clause for a quantity of 93sets on the above firm.
2. It is certified by the stores department that the performance of the
firm is
satisfactory. Firm has supplied 192sets out of ordered
quantity of 308sets i.e supplied 62%) and DP is ahead for the
balance quantity i.e 31.12.2014.
3.0
The financial implications of the proposed option clause are
as follows:
1

Original Value of the PO.

2
3
4
5
6

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required
Delivery period upto

8
9

Rs.3,53,13,24
1.04
308 sets
93 sets
Nil
93 sets
Rs.97,95,839.
73
Rs.4,51,09,08
0.77
COS
31.12.2014

NOTE/2
4.1
Necessary ANE is available in the case file to cover the
proposed option quantity.

5.1
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie.,COS.
As such, the proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage and as per the recommendation
in the `subsequent TC, if approved we may concur the proposal to
exercise (+)30% option clause on the above firm for a quantity of
93sets with PVC upper sealing may be pegged down to rates
obtained in the tender opened on 24.06.2014..
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),

STORES FINANCE SECTION,


RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01

Dt.17-10-2014

Dy.CMM/Elec
Sub : Procurement of Diesel Locos Starter battery 8V 450 AH(LM)
under (+) 30% Option Clause.(PO.NO.92373 dt:13.09.13 &
PO.NO.92374 dt:13.09.14) on M/s. Mysore Thermo Electric P
Ltd/SBC, M/s.Celetek Industries P Ltd/SBC.
Ref : Your Note No:22 to 24 of Case file No. PE.45.13.1104.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
20.06.14) for the above subject item are on higher side. The rate accepted in the
new tender is Rs.36,192.19(AIR)-, whereas the instant Purchase Orders rates is
Rs..35158.90. In view of the financial advantage to Railways, finance concurrence
is hereby signified for exercising (+) 30% Option Clause on (i) M/s. Mysore
Thermo Electric P Ltd/SBC against PO.NO.92373 dt13.09.13 for a quantity of
84Nos, (ii) M/s.Celetek Industries P Ltd/SBC against PO.NO.92374
dt:13.09.13 for a quantity of 56Nos with original terms and conditions with in
Delivery Period. The total value of the contract including 30% option clause is
RS.2,13,06,293.4
The above concurrence is subject to the following:
1. Obtaining the Sanction of COS,as the value exceeds the original
accepting authority level.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

1. AAC of tatkal reservation forms is shown as 1 crore, the approval


for the same may be placed on file.
2. The authority to change from paper printing yellow to paper
printing
pink
may
be
furnished.
Further,the
detailed
justification/caluculation sheet for previous AAC i.e 5000 paper
printing yellowGSM reels may be placed on file.
3. In view of the improvement and increase in online booking the
necessity for enhancement from 5000 to 20000 may be reviewed
again and justified accordingly.
4. The increase of AAC is 4 times the previous AAC, the consumption
for the last three years is low, as such enhancement of AAC may be
reviewed once again and procurement made accordingly.

Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01

Dt.21-10-2014

Dy.CMM/Elec
Sub :Procurement of Lead Acid Battery set 6V -120 Ah under
(+) 30% Option Clause.(PO.NO.90903 dt:06.05.14) on
M/s. HBL power Systems Ltd/Hyb.
Ref : Your Note No:27 to 29 of Case file No. PE.45.13.1089.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
24.06.14) for the above subject item are on higher side. The rate accepted in the
new tender is Rs.1,09,362.62 per set(AIR)- with PVC based on HZL lead price of
Rs. 1,72,300), whereas the instant Purchase Orders rates duly updating with PVC
is Rs.1,05,331.61per set. In view of the financial advantage to Railways, finance

concurrence is hereby signified for exercising (+) 30% Option Clause on M/s. HBL
power systems Ltd/HYb against PO.NO.90903 dt06.05.14 for a quantity of
93 sets with PVC upper sealing pegged down to rates obtained in the tender
opened on 24.06.2014 and with original terms and conditions with in Delivery
Period. The total value of the contract including 30% option clause is
RS.4,51,09,080.77
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
Dt. 27.10.2014
Dy.CMM/C&W

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

Sub : Procurement of Knuckle Pivot Pin with washerExercising of


(+) 30% Option Clause against M/s. Melbrow Engg
Works Pvt
Ltd,P.O.No:92819 Dt:05.11.13.
Ref :Dy.CMM/C&Ws Note:17 to 23 of Case file
No.PW.38.13.1267.
oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 19.08.14) for the above subject item are on higher side. The
rate quoted by the lowest offer is Rs.234.55 for MFT and Rs.233.85 for
RYPS per number, whereas the instant Purchase Order rate is Rs.209.6
per number. In view of the financial advantage , finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.Melbrow
Engg Works Pvt Ltd/Kolkata for a quantity of 5489Nos against
PO.NO.92819 dt:05.11.13 with original terms and conditions with in
Delivery Period. The total value of the contract including 30% option clause is
RS.49,85,755.2.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Conditions stipulated in the instant PO.
6. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.

( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For
NOTE/1

Sub : Procurement of MOH Kit for ELGI compressor type RR20100 Exercising of (+) 30% Option Clause on M/s.AAR VEE
pneumatic services/Hyb(P.O No:91493 Dt: 07.07.14)
Ref : Dy.CMM/Elecs Note No:18 to 20of Case file No.
PA.29.13.1043.
-oOoAs such, Sr. scale tender committee of the subsequent tender
recommended to exercise (+)30% option clause A proposal seeking
finance concurrence for operating (+) 30% option clause on the above
subject item, received from Dy.CMM/Elec, which is placed at Folio-1/C
may kindly be perused.
For procurement of the above subject item one Purchase Order has
been placed on M/s. AAR VEE Pneumatic Services /HYD (AIRRs.44547.31/- per set.) with the acceptance of CMM for a total value of
Rs.31,18,311.70(L/F-N/14).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the demand is available.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 19.08.2014 in which the
lowest quoted rate is Rs.48,556.60 per set(AIR) (L/F-161), whereas
the subject POs rate is Rs.44547.31per set. TC recommended to
place regular order for 10 sets with counter offering the LPO AIR @
Rs.44547.31 per set and TC recommended to operate +30% for 36
sets on M/s. AAR VEE Pneumatic services/Hyd against the LPO.
Hence, Stores department is proposing to exercise (+)30% option
clause on the above firm, it is financially advantageous to Railways
in exercising quantity option clause on the above firm.
2. It is certified by the stores department that the performance of the
firm is satisfactory. It is stated that the firm has supplied 63 NOs
out of ordered quantity of 120sets and DD is ahead i.e.28.02.15 for
the balance quantity.(supplied 52% quantity).

3. The financial implications of the proposed option clause are as


follows:
1

Original Value of the PO.

2
3
4
5
6

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.
31,18,311.70
120 sets
36 sets
Nil
36 sets
Rs.16,03,703.
16
Rs.47,22,014.
86
CMM
28.02.2015

4. Necessary indent is available in the case file to cover the proposed


option quantity.
5. Delivery period is upto 28.02.15.
With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage, if approved we may concur the
above proposal, i.e. 36sets on M/s AAR VEE Pnuematic services/HYd
against Po.No.91493 dt:07.07.14.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 31.10.2014
Dy.CMM/Elec
Sub : Procurement of MOH Kit for ELGI compressor RR20100- Exercising of (+) 30% Option Clause against M/s.AAR
VEE Pneumatic Services/HYB ,P.O.No:91493 Dt:07.07.14.
Ref :Dy.CMM/Elecs Note:18 to20 of Case file
No.PA.29.13.1043.
oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.

It is observed that the rates received in subsequent tender (ie.,


opened on 19.08.14) for the above subject item are on higher side. The
rate quoted by the lowest offer is Rs.48,556.60 per set, whereas the
instant Purchase Order rate is Rs.44,547.31 per set. In view of the
financial advantage , finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.AAR VEE Pneumatic
Services /HYD for a quantity of 36 sets
against PO.NO.91493
dt:07.07.14 with original terms and conditions with in Delivery Period. The
total value of the contract including 30% option clause is RS.47,22,014.86.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Conditions stipulated in the instant PO.
6. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1
Sub : Procurement of Air Brake Hose Coupling assembly
under (+) 30% Option Clause-Reg.
Ref : Dy.CMM/C&Ws Note No:88 to 89 of Case file
No.PW.38.13.1543
-oOo-

A proposal seeking finance concurrence for operating (+)


30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item five Purchase
Orders have been placed on (i) M/s.A.B.Elastro Products Pvt
Ltd/Kolkata(Part-II)(AIR- Rs.755.06each)(DP expired on 07.11.14) (ii)
M/s.IMT Cables Pvt Ltd/New Delhi(Part-II) (AIR- Rs. 755.06each)(DP
expired on 20.08.14), (iii) M/s.Avadh Rubber Haridwar(Part-I) (AIRRs.838.08 each) (iv)M/s.The General Rubber Co. Pvt Ltd/New
Delhi(Part I)(AIR- Rs.838.08 each)& (v).M/s. ASP sealing products
Ltd/New Delhi (Part-I) (AIR- Rs. 755.06 each)(DP expired on
05.09.14) with the acceptance of COS for a total value of
Rs.1,34,50,655.26 (L/F-N/55) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on (i) M/s.A.B.Elastro Products Pvt Ltd/Kolkata(Part-II),
(ii). M/s.Avadh Rubber Haridwar(Part-I),(iii)M/s.The General Rubber
Co. Pvt Ltd/New Delhi(Part I), as the DP for M/s. A.B.Elastro Products
Pvt Ltd/Kolkata expired on 08.11.14, option caluse cannot be
exercised on the above firm,as the rates received in subsequent
new tenders are on higher side.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 25.02.14 &
26.09.14 in which the lowest technically suitable Part-I firm
quoted Rs.909.41 each (AIR) (L/F-640) and lowest Part-II firm
quoted Rs.837.64each, whereas the subject POs rates are
Rs.838.08 for Part I source and Rs.755.06 for Part II source. The
tender openend on 25.02.14(AIR_873.04) has been droped and
advised to exercise option clause (L/F./582). It is financially
advantageous to Railways in exercising quantity option clause
on the above firms.
2. It is stated that the performance of the above firms is
satisfactory. However, it is learnt that the firm M/s.Avadh
Rubber/Haridwar has supplied 4320Nos, (70%),DP is ahead ie.
05.02.15 for the balance unsupplied quantity.(ii).M/s.The General
Rubber has supplied Nil Nos (0%) as on date. In view of the
above 30% option clause may be exercised on Avadh
Rubber/Haridwar as DP is expiring on 05.02.15 and xecutive will
be advised to process 30% on other firm M/s. The General
rubber after satisfactory performance.

3. Necessary indent for 800 Nos is available in the case file to


cover option clause.
4. The financial implications of the proposed option clause are
as follows:
1

Original Value of the four POs. (L/F-N/55)

2
3
4
5
6
7

Original Qty in the 2 POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.1,34,50,655.2
6
12342Nos
3702Nos
Nil
1851Nos
Rs.15,51,286.08
Rs.1,50,01,941.3
4
COS
05.02.15

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage involved, if approved we may
concur the proposal to exercise (+)30% quantity option clause for a total
quantity of 1851Nos only ie., on (i) M/s.Avadh Rubber/Haridwar for a
quantity of 1851 Nos against PO.No.90924 dt.07.05.14 only and
executive will be advised to process the case of M/s. General Rubber co P
Ltd/NDLS after satisfactory performance and as against expired purchase
orders(M/s. A.B.Elasto Products Pvt Ltd,M/s. IMT Cables Pvt Ltd & ASP
Sealings Products ltd) executive will be advised to take consent from the
firms for accepting 30% option clause and refix the DP for the enhanced
quantity and resubmit the case, so that financial advantage is not lost.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

N-1
Sub : Metal Cutting gas(LPG) for metal cutting Gas brazing under
(+) 30%
Option Clause on M/s. BPCL/East Mumbai P.O No:92467
Dt:20.09.13).
Ref : Dy.CMM/Gs Note No:13 to 16 of Case file No. PO.81.13.1419.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/G, which
is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item one Purchase Order
placed on M/s. BPCL/East Mumbai(AIR-Rs.112 Per Kg) with the acceptance
of CMM for a total value of Rs.51,09,440(L/F-N/12).
Now, it is proposed to exercise (+)30% quantity option clause on
the above two firms as the demand is available.
The proposal
observations:

has

been examined

and

the

following

are the

1. It is stated that a new tender was opened on 28.07.2014 for the


subject item. The All inclusive rate accepted in the new tender is
Rs.116 per Kg(AIR). As the rates of instant POs is lower than the
subsequent tender(Rs.112/- per Kg) financially beneficial to
Railways, Hence, Stores department is proposing to exercise
(+)30% option clause on the above firm, it is financially

advantageous to Railways in exercising quantity option clause on


the above firm
2. It is certified by the stores department that the performance of the
firm is satisfactory. However, M/s BPCL/East Mumbai supplied
18100 Kgs out of 45620 Kgs -Balance still to supply27520(supplied 40%).Due date of supply is 31.03.2015.
3. Necessary ANE is available (L/F-61) in the case file to cover the
proposed option quantity.
4. DP is available upto 31.03.2015.
5. The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6
7
8

Original Value of the POs.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the PO after exercising
(+) 30% option clause
Competency of Sanction required
N/2

Rs.51,09,440.
45620 kg
13686 Kg
Nil
13686 Kg
Rs.15,32,832
Rs.66,42,272
CMM

6. With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As
such, the proposal requires the concurrence of Sr.AFA/SF..
In view of the financial advantange if approved the proposal may
be concurred for a quantity of 13686 Kg on M/s. BPCL/East Mumabi
against Po.NO.92467 dated 20.09.13.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 07.11.2014
Dy.CMM/G
Sub : Procurement of Metal cutting gas(LPG) for metal cutting and
brazing
Exercising of (+) 30% Option Clause.on M/s. BPCL/East

Mumbai,P.O.No:92467 Dt:20.09.13.
Ref : Your Note No:13 to 16 of Case file No. PO.81.13.1419.
-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 28.07.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.116/- per Kg, whereas the instant
Purchase Order rate is Rs.112/- per Kg. In view of the financial advantage
and as recommended by JAG tender committee, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.BPCL/East
Mumbai for a quantity of 13686 Kg with original terms and conditions
with in Delivery Period.The total value after exercising +30% option
clause is Rs. 66,42,272/-.
The above concurrence is subject to the following:
(i)
(ii)

Obtaining the Sanction of original accepting authority, ie., CMM.


Ensuring that no lower rates have been received in terms of para

3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii)

Fixing reasonable delivery schedule for the enhanced quantity.

(iv.)

Ensuring availability of funds during the current financial year.

(v.).

Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1

Sub : Supply of POH kit of self lubricating polyester etc.


under (+) 30% Option Clause on M/s.Black Burn & Co
Pvt Ltd/Calcutta.
Ref : Dy.CMM/C&Ws Note No:18 to 23 of Case file No.PC30.12.2201.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase
Order is
placed on (i)Black Burn & Co Pvt Ltd/Kolkata(AIR
Rs.7049.78 per set) with the acceptance of CMM for a total value of
Rs. 1,18,92,978.86 (L/F-N/12) with (+)30% option clause.
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the higher rates received

on subsequent tender. It is stated that a new tender was opened on


13.03.14 for the subject item. The All inclusive rate accepted by the
lowest tenderer in the new tender is Rs.7381.27 per set. The new
tender has been finalized by the JAG tender committee duly
recommending to exercise (+)30% option clause on the instant
Purchase Orders (L/F-204). As such, Stores department is proposing
to exercise (+)30% option clause on the instant Purchase Order. As
there is a rate difference of Rs.331.49 per set, it is financially
advantageous to Railways in exercising (+)30% quantity option
clause for a quantity of 506 sets on the above firm.
2. The performance of the firm is satisfactory. The firm has supplied

the entire ordered quantity. The delivery period is refixed upto


30.11.2014.
(iii). Necessary ANE is placed at F/210.
(iv). The financial implications of the proposed option clause are as

follows:
1
2
3
4

Original Value of the two POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option
clause

Rs. 1,18,92,978.86
1687 Sets
506 sets
Nil

5
6
7
8
9

Now proposed qty under option


506 sets
clause
Value of the proposed option Qty Rs.35,67,188.68
Total Value of the POs after
Rs.1,54,60,166.21
exercising (+) 30% option clause
Competency of Sanction required
CMM
Delivery period available upto
30.11.2014
N/2

With the exercise of above option clause, the revised value will
be with in the powers of original accepting authority ie., CMM.
As such, the
proposal requires the concurrence of
Dy.CAO/S&W.
In view of the financial advantage involved in the
proposed option clause, if approved, we may agree +30%
option clause on M/s.Black Burn & Co Pvt Ltd/Kolkata
against PO.NO.91651 dt:04.07.13 for a qunaity of 506 sets
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

DY.CAO/S&W

NOTE/1
Sub : Procurement of 300AH Low Maintenance Lead Acid
stationary cells exercising of (+) 30% Option Clause
against Po.No:49109 dt:11.08.14 and 23078
dt:11.08.14 on M/s.PowerBuild Batteries Pvt
ltd/Bangalore.
Ref : Dy.CMM/S&Ts Note No: 22 to 23 of Case file
No.PS.56.13.5352.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/S&T, is placed at folio-1/C, which may kindly be perused.
For procurement of the above subject item Two Purchase
Orders have been placed on M/s.Power Build Batteries Pvt
Ltd/Bangalore(Pt.II) at an all inclusive rate of Rs.5352.85 per
No+ Tool Kit price@ Rs.1582.5 per set(updated price is 5182.66
per No.+1582.5 for Tool kit per set)and at a total value of Rs.
55,97,031.5 with the acceptance of CMM (L/F-N/19).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.

The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 17.10.2014 in which
the rates received are on higher side ie.,Part II- Rs.6279.79 per
no+ 1585.67 for tool kit. The instant POs updated rate is
Rs.5352.85 per No.,which is less in rate by Rs.1097.12 per no.
The new tender has not been finalized, since DP is expiring on
15.11.2014, stores branch is proposing for exercising (+)30%
option clause on the instant Purchase Orders,as it is financially
advantageous to Railways in exercising (+)30% quantity option
clause for a quantity of 312 Nos on the above firm.
2. It is certified by the stores department that the performance of the
firm is
satisfactory. Firm has supplied the entire ordered
quantity(F.213,214).
3. The financial implications of the proposed option clause are as
follows:
1

Original Value of the PO.

2
3
4
5
6

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required
Delivery period upto

8
9

Rs.55,97,031.
5
1041
312 Nos
Nil
312 Nos
Rs.16,79,584.
2
Rs.72,76,615.
7
CMM
15.11.2014

NOTE/2
4.2
Necessary ANE is available in the case file to cover the
proposed option quantity.
5.2
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie.,CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage, if approved we may concur
the proposal to exercise (+)30% option clause for a quantity of

312sets on M/s. M/s.PowerBuild Batteries Pvt ltd/Bangalore against


PO.NOs. 49109 dt:11.08.14 and 23078 dt:11.08.14. with PVC upper
sealing may be pegged down to rates obtained in the tender
opened on 17.10.2014 and the quantity proposed in 30%
option clause should be reduced from the subsequent tender.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

SECUNDERABAD
No.ASF/Q 01

Dt.14.11.2014

Dy.CMM/Elec
Sub :Procurement of 300 AH Low Maintenance Lead Acid stationary
cells under (+) 30% Option Clause against PO.NO.49109 .
dt:11.08.14 and 23078 dt:11.08.14 on M/s Power Build
Batteries
Pvt Ltd/Bangalore
Ref : Your Note No:22 to 23 of Case file No. PS.56.13.5352.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
17.10.14) for the above subject item are on higher side. The rates quoted in the
new tender is Rs.6279.79 per No +1585.67 per set for tool kit- with PVC based on
HZL lead price of Rs. 1,62,000), whereas the instant Purchase Orders rates duly
updating with PVC is Rs.5182.66 per No+1582.5 for tool kit. In view of the
financial advantage to Railways, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s. Power Build Batteries
Pvt
Ltd/Bangalore
against
PO.NO.49109
dt11.08.14
and
Po.NO.23078
dt:11.08.14for a quantity of 252 Nos and 60 Nos respectively with PVC upper
sealing pegged down to rates obtained in the tender opened on 17.10.2014 or
actual whichever is lower and with original terms and conditions with in
Delivery Period and the option quantity of 312 Nos should be reduced from the
subsequent tender. The total value of the contract including 30% option clause is
RS.72,76,615.7
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5.

tenders.

Ensuring reduction of enhanced quantity from the future

6. Getting the MPOs vetted by Stores Finance section.


Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01

Dt.14.11.2014

CMD/SC
Sub:-

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER(S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
17.11.2014

Dt.

Dy.CMM/C&W
Sub : Supply of POH kit of self lubricating
polyester etc. under (+) 30% Option Clause on
M/s.Black Burn&CO Pvt Ltd/Kolkata against
P.O.No:91651 Dt:04.07.13.
Ref : Your Note No:18 to 23 of Case file
No.PC.30.12.2201.
-oOoThe proposal received in connection with exercising
of (+) 30% Option Clause on the above subject item
Purchase Order has been examined.

It is observed that the rates received in subsequent


tender (ie., opened on 13.03.14) for the above subject
item are on higher side when compared with the rates of
the instant purchase order. In view of the financial
advantage and as recommended by subsequent tender
committee, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Black Burn & Co
Pvt Ltd/Kolkata for a quantity of 506sets, with original
terms and conditions with in Delivery Period. The total
value
including
+30%
option
clause
is
Rs.1,54,60,166.21/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM
2. Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.
Fixing reasonable delivery schedule for the enhanced
quantities.
4.
Ensuring availability of funds during the current financial
year.
5. Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
FINANCIAL

No.ASF/Q 01
Dt. 17.11.2014
Dy.CMM/C&W

O FFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

Sub : Supply of Thermo Plastic Polyster Elastomer(Hytrel) lower


washer
Exercising of (+) 30% Option Clause.on M/s. Polymer
Products of
India/Bangalore & M/s/ Calster Steel Ltd/Kolkata against
P.O.No:92025 of 05.08.13, 91790 dt:16.07.13.
Ref : Your Note No:23 to 31 of Case file No. PC.30.12.1039.
-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 28.02.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.1001.01 per No for Part I firm,
whereas the instant Purchase Order rate is Rs.892.25 per no for Part I
firm and Rs.873.04 for Part II firm. In view of the financial advantage and
as recommended by JAG tender committee, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.Polymer
Products of India/Bangalore against PO.NO.92025 dt 05.05.13 for
a quantity of 1220 Nos and on M/s. Calster Steel Ltd/Kolkata
against pO.NO. 91790 dt.16.07.13 for a quantiy of 3874 nos Total
5094 Nos with original terms and conditions with in Delivery Period.The
total value after exercising +30% option clause is Rs. 1,96,51,583.87/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4.

Ensuring availability of funds during the current financial year.

5.

Getting the MPOs vetted by Stores Finance section.

This issues with the approval of Dy.CAO/S&W


Encl : The concerned file.
( A.K.GANE
SHAN )

Sr.AFA/SF
FA&CAO/S&W.

For
NOTE/85

Sub :- Procurement of ERC Mk-IIII to RDSO drawing No. T-3701.


Exercising of (-)30% option clause. P.O.No:14 dt 26.02.2014
on
M/s. Kalimatha Ispat Industries Pvt Ltd/Kolkata, PO.No.17
dt:02.05.14
on M/s. Suray Coach Builders Pvt Ltd/Banglore.
Ref
:Dy.CE/TPs
Note
No.
57-58
of
Case
file
No:W.503/1/30/ERC/201314/TPC/13,14,15,17.
-oOoA proposal seeking finance concurrence for operating (-) 30%
option clause on the above subject item, received from Dy.CE/TP, is
placed at Folio-1/C which may kindly be perused.
Four Purchase Order has been placed for procurement of the above
subject item on
1. M/s. Surya Coach Builders Pvt Ltd/Bangalore for a quantity of
8,57,618 Nos AIR@ Rs.60.17 PVC updated rate is Rs. 62.43.
2. M/s. Mansh Forgins Pvt Ltd/Kokkata for a quantity of 10,54,393 Nos
AIR
@Rs.62.67/-( Party supplied full ordered quantity) hence -30% is
not exercised.
3. Kalimata Ispat Industries Pvt ltd/Kolkata for a quantity of 3,51,464
Nos AIR @ Rs.62.23, PVC updated rate is Rs.64.48.
4. M/s. Mak Engineering Industries/Kolkata for a quantity of 1,05,750
Nos AIR @ Rs.63.67)(Exectuive not proposed the reasons for the
same is called for).
with the acceptance of PCE(L/F-N/41).
Now, it is proposed to exercise (-) 30% option clause on the subject
P.O Nos. 14 Dt: 26.02.14 against M/s. Kalimata Ispat Industries Pvt
Ltd/Kolkata for the balance unsupllied quantity of 48582 Nos and on
Po.No.17 dt:02.05.14 against M/s. Surya Coach Builders Pvt
LTD/Bangalore for a quantity of 2,57,285 Nos.
The proposal has been examined and the following are the
observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the


above subject P.Os, as the rate received in the tender opened

recently ie on 26.09.14, from lowest technically suitable offer L1


is Rs.62.28 per No for Part II firm and Rs. 62.34 per No for Part I
firm, whereas the instant PO rate after PvC updation is Rs. 62.43
for Part I firm and Rs.64.48 for Part II firm
(ii)

It is observed from the case file that without asking the firm to
agree for lower rates, executive has directly advised a letter to
firm stating reduction of contractual quantity upto 30% of
ordered quantity as per clause No.18. Since due date of the
Po.NO.14 dated 26.02.14 is expiring on 25.11.2014 and as
proposed by PCE, if approved we may exercise -30% option
clause.

(iii)

As the original tender was finalized with SAG tender committee


and accepted by PCE, the above proposal requires the
concurrence of FA&CAO/S&W for exercising (-)30% option
clause.

(iv)

The proposal to exercise (-)30% option clause has the approval


of PCE (Folio-N/57).

In view of the above, if approved we may concur the proposal to


exercise
(-)30% option clause on the above two firms i.e M/s.
Kalimata ispat Industries Pvt Ltd for a quantity of 48582 Nos and
against M/s. Surya Coach Builders Pvt Ltd for a quantity of 2,57,285
Nos and after receipt of remarks from executive
(-)30% option
clause on M/s. Mak Engineering Industries/Kolkata will be processed.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/85
Sub :- Procurement of Hydraulic oil servo system HLP.68
Exercising of (-)30% option clause. P.O.No:91077
Dt:05.05.2012.
Ref :- Dy.CMM/Gs Note No. 23 to 24 of Case file No:PO.80.11.1152.
-oOoA proposal seeking finance concurrence for operating (-) 30%
option clause on the above subject item, received from Dy.CMM/G, is
placed at Folio-107/C which may kindly be perused.
One Purchase Order has been placed for procurement of the above
subject item on M/s.Hindustan Petroleum Corporation Ltd/Chennai
(L/F-106) for a quantity of 1,35,360 LTRS at a total value of
Rs..1,14,82,588.80 with the acceptance of CMM/G (L/F-N/11).
Now, it is proposed to exercise (-) 30% option clause on the subject
P.O No. 91077 Dt: 05.05.12 for a quantity of 40,407 LTRS.
The proposal has been examined and the following are the
observations:

(i)

It is proposed to invoke (-) 30% quantity option clause on the


above subject P.O, as the rate received in the tender opened
recently ie on 10.04.2013, from lowest technically suitable offer
is Rs.79.26 per litre (L/F-127-129), whereas the instant PO rate is
Rs.84.83per litre (L/F-106). Earlier, (+)30% option clause was
exercised on this firm as the rates received in the subsequent
tender are on higher side.

(ii)

It is observed from the case file that the firm was advised to
accept the lower rate of Rs.79.26 per litre, but the firm refused
to accept the offer. The firm still has to supply 40,407 ltrs only.
Though the (+)30% quantity works out to 40,608 Ltrs, the
balance quantity to be supplied by the firm is only 40,407 ltrs.
As such, it is proposed to cancel 40,407 ltrs duly exercising
(-)30% option clause on the firm.

(iii)

As the original tender was finalized with JAG tender committee


and accepted by CMM, the above proposal requires the
concurrence of Dy.CAO/S&W for exercising (-)30% option
clause.

(iv)

The proposal to exercise (-)30% option clause has the approval


of CMM (Folio-107).

In view of the above, if approved we may concur the proposal to


exercise
(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

N/1
Sub :
exercising of

Procurement of UIC type rubber vestibule Assembly.

(+) 30% Option Clause on M/s. Escorts


Ltd/Faridabad(P.O.No:91581
dt:28.06.13), M/s. Ameenji rubber Pvt Ltd/Sc(P.O.No.91580
dt:28.06.13).
Ref:Dy.CMM/C&Ws Note No:16,17,23to26 of Casefile No.
PC.30.13.3621.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase
Order have been placed on M/s.Ameenji rubber Pvt Ltd/Sc(AIRRs.29,470.90per Number) and M/s.Escorts Ltd/Faridabad(AIRRs.28,885.92) with the acceptance of CMM/M for a total value of
Rs.1,39,58,533.78(L/F-N/13).
Earlier, the proposal was returned with some observations
vide letter placed at Flag-A, which may kindly be perused. As the

performance of the firm is not satisfactory and financial justification


for invoking option clause was not submitted, the proposal was
returned.
In response to finance observations, Stores department
resubmitted the proposal duly giving the supply position and stated
that in the subsequent tender higher rates were received (AIRRs.36950 for Part I and Rs.32384.96 for Part II firm). As the rates in
instant purchase order are lower side, Stores department requested
this office to concur the proposal.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 10.09.2014 in which
the lowest Part I firm has quoted rate of Rs.36950/- and Part II firm
has quoted Rs.32384.96per Number(AIR), whereas the subject POs
rate is Rs.29470.9 for Part I firm and Rs.28885.92 for Part II firm.
The new tender is not yet finalized. However, as the Delivery Period
of the firm M/s.Ameenji Rubber and M/s. Escorts Ltd is about to
expire on 15.12.14(refixed DP), Stores department is proposing to
exercise (+)30% option clause on the above firm. As there is a rate
difference of Rs.7479.1 per number for Part I firm,since,
subsequently tender opened on 10.09.2014 rates are higher, it is
financially advantageous to Railways in exercising quantity option
clause on the above firms i.e M/s. Ameenji rubber Pvt Ltd/SC for a
quantity of 107 Nos against Po.No.91580 dt:28.06.13 and on M/s.
Escorts Ltd/Faridabad for a quantity of 36 Nos against Po.No.91581
dt:28.06.13.
2. Performance of the firm is certified as satisfactory. Howerver, it is
observed from stock position slip(L/F.335) that M/s. Escorts Ltd has
supplied the entire ordered quantity and M/s. Ameenji Rubber has
supplied 77.87% of Po quantity ie. Supplied 278 Nos out of 357
Nos.
3. Necessary ANE is available in the case file to cover the proposed
option clause.
4. CMM approval was obtained to operate +30% option clause.
5. The financial implications of the proposed option clause are as
follows:
1

Original Value of the PO.

Rs.

2
3
4
5
6
7

8
9

1,39,58,535.78
Original Qty in the POs.(357+119
476Nos
Nos)
(+) 30% option quantity(107+36)
143Nos
Qty already utilized under option
Nil
clause
Now proposed qty under option
143 Nos
clause
Value of the proposed option Qty
Rs.41,93,279.4
2
Total Value of the POs after Rs.1,81,51,815.
exercising (+) 30% option clause 2
(including already option clause
exercised POs)
Competency of Sanction required
CMM
Delivery period available upto
15.12.2014

With the exercise of above option clause, the revised value


will be with in the powers of original accepting authority ie., CMM.
As such, the proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the present
option clause, if approved we may concur the proposal on M/s.
Ameenji Rubber against Po.No.91580 dt:28.06.13 for a quantity of
107 Nos and on M/s. Escorts Ltd against PO.No.91581 dt:28.06.13
for a quantity of 36 Nos.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

Dy.CAO/S&W

NOTE/1
Sub : Procurement of Low Mintenance diesel Loco starter battery 8 V 500
AH
capacity. under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:43 to 47 of Case file No. PE.45.13.1056.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/Elec,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item five Purchase Order
have been placed on (i) M/s.Celtek BatteriesPvt Ltd/SBC(Pt.I) (AIR
Rs.41569.55 per unit updated AIR- Rs.40893.27 per unit) (ii) M/s.HBL
Power Ltd/HYB Part-I(AIRRs.41569.55 per unit and updated AIR is
Rs.40892.86)(iii)M/s.Star Battery Ltd/ Part-I (AIR- Rs.41569.55 per
unit- DP expired on 30.08.2014(before finalization of TC)(iv). M/s.
Mysore Thermo Electric P Ltd/SBC/Part II(AIR Rs 40102.01- DP
expired before opening of subsequent tender) & (v). M/s.
Southern Batteries P Ltd/SBC/ Part II(AIR-40102.01- DP expired
before opening of subsequent tender) with the acceptance of CMM
for a total value of Rs.75,41,188.35 (L/F-N/22).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above two firms(M/s. Celtek Batteries Pvt ltd/SBC & M/s.
HBL Power Ltd/HYB on the basis of a Stock ANE/NS indent received from
units.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 14.08.2014 in which
the rates received are on higher side ie.,Part I- Rs.41,077.37 per
unit. The instant POs updated rate is Rs.40,893.27 per unit.,which
is less in rate by Rs.184 per unit. As such, Sr. scale tender
committee of the subsequent tender recommended to exercise
(+)30% option clause on the instant Purchase Orders,as it is
financially advantageous to Railways in exercising (+)30%
quantity option clause for a quantity of 19 Nos( i.e on M/s. Celtek

Batteries Pvt Ltd/SBC for a quantity of 5 Nos and on M/s. HBL Power
Ltd/HYb for a quanity o 14 Nos).
2. It is certified by the stores department that the performance of the
firms is
satisfactory. The firm M/s. Celtek Batteries Pvt
Ltd/SBC has supplied 18 Nos on 16.12.2014(F/297) and M/s. HBL
Power Systems have offered their material for RITES Inspection vide
G.NO.HBL/HRO/SCR/LMLA 14-15/51/SMH dated 01.12.2014 (F/300)
and the material delivered within the due date i.e 31.12.2014.
3.

Necessary ANE
option quantity.

is available in the case file to cover the above

4. The financial implications of the proposed option clause are as


follows:
1

Original Value of the three POs.

2
3

Original Qty in the POs(for All Pos).


(+) 30% option
quantity(18+48=66*30/100=19)
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty @ 40893.27/Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

4
5
6
7
8
9

Rs.75,41,188.35
.
66 Nos
19 Nos
Nil
19 Nos
Rs.7,76,972.13
Rs.83,18,160.48
CMM
31.12.14
&08.01.15

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W(original accepting
member).
In view of the financial advantage involved, if approved we may
concur the proposal against M/s. Celtek Batteries Pvt Ltd against
Po.No.90479 dt:11.03.14 for a quantity of 5 Nos and on M/s. HBL Power
Ltd/Hyb against Po.NO.90477 dt:11.03.14 for a quantity of 14 Nos as DP
is expiring on 31.12.2014 with PVC upper sealing pegged down to rates
obtained in the tender opened on 14.08.14 or actual whichever is lower.

Submitted for kind perusal and orders please.


SSO(A)/SF
Sr.AFA/SF

N/1

Sub : Procurement of Valve regulated Lead Acid Battery of 2 V -1100AH


capacity.
Exercising of (+) 30% Option Clause against Po.No.92848
dt.06.11.14,92959
dt:25.11.13,92487 dt:06.11.14.
Ref : Dy.CMM/Elecs Note No:47 to 51 of Case file No. PE.45.13.1021.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/Elec,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item three Purchase Orders
have been placed on (i)M/s.Microtex Energy Pvt Ltd/SBC Part-II (AIRRs.11,27,583.25per set updated price is Rs. 11,01,582.48)(ii) M/s.HBL
Power Systems Ltd/Hyb Part-I (AIR Rs.11,37,111.26 per set
updated price is Rs.11,10,950.48 per set)&(iii)M/s.Exide Ind
Ltd/Kolkata Part-I(AIR-Rs.11,37,111.26 per set updated price is

Rs. 11,10,950.48243.03 per set.) with the acceptance of AGM for a


total value of Rs.11,12,08,231.24 (L/F-N/35).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above three firms on the basis of a Stock indent received
from units(F.429 to435).
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the recommendations of
the subsequent tender committee. It is stated that a new tender
was opened on 18.07.2014 for the subject item. The All inclusive
rate accepted in the new tender is Rs.11,11,527.66 per set for Part
I source and Rs. 11,01,581.74 per set for Part II source. As the rates
of instant PO, PVC updated rate is Rs.11,10,950.48 for Part I source
and Rs.11,01,582.48 per set for Part II firm i.e lower than the
subsequent tender and financially beneficial to Railways. Further, it
is seen that though there is no significant difference in the rates
received from Part II source, the rate is lower than the Part I rate
received in the present tender by Rs.9945.18 per set by exercising
option clause at a lower rate on Part II source there will be savings.
Hence SAG tender committee has recommended to exercise option
clause and procure 13+10+8=31sets)against the instant POs(L/F411ante), which was accepted by COS, but as per actual quantities
against three Pos is (24+43+31=98 sets and
option clause
quantity is 98*30%= 29 sets only. Hence, +30% option clause will
be exercised for 29 sets only.
2. It is certified by the stores department that the performance of the
firms is
satisfactory. The firm M/s.Microtex Energy Pvt
Ltd/SBC has supplied 12sets out of 24sets(i.e 50% supplied) DP is
ahead for the balance unsupplied quantity i.e 31.03.15. M/s.HBL
Power Systems Ltd/HYB has supplied 24 sets out of 43sets(i.e 56%
supplied) DP is ahead for the balance unsupplied quantity i.e upto
30.03.15. M/s.Exide Ind Ltd/Kolkata has supplied 15sets out of 31
sets i.e supplied 48%, DP is ahead for the balance unsupplied
quantity i.e upto 30.03.15.
N/2
3.
1

The financial implications of the proposed option clause are as


follows:
Original Value of the three POs.

Rs.11,12,08,231.2

4
2
3
4
5
6
7
8
9

Original Qty in the POs.(24+43+31=98)


(+) 30% option quantity(7+13+9=29)
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto

98 sets
29 sets
Nil
29 sets
Rs.3,29,09,530.47
Rs.14,41,17,761.7
1.
AGM
31.03.15

4.

Necessary ANE is available in the case file to cover the above


option quantity for 29 sets.

5.

In view of the financial advantage if approved option clause will be


exercised on(i).M/s.Microtex Energy Pvt Ltd/SBC Part-II
against Po.No.92848 dt:06.11.13 for a quantity of 7 sets,
(ii).M/s.HBL Power Systems Ltd/Hyb against PO.No.92959
dt:25.11.13 for a quantity of 13sets and (iii). M/s.Exide Ind
Ltd/Kolkata against Po.No.92847 dt:06.11.13 for a quantity
of 9 sets. (Total 7+13+9-29 sets only)

6.0

The proposal has the Administrative approval of CMM (Folio-N/51)


for exercising option clause on the above three firms.

7.0

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., AGM. As
such, the proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage and as per the recommendation
in the `subsequent TC, if approved we may concur the proposal to
exercise (+)30% option clause on the above firms for a quantity of
29sets as mentioned above, with PVC upper sealing pegged
down to rates obtained in the tender opened on
218.07.2014.
Submitted for kind perusal and orders please.
SSO(A)/SF

Sr.AFA/SF

Dy.CAO/S&W

N/1

Sub : Procurement of Brushless Alternatore 4.5 K W etc. Exercising of


(+) 30%
Option Clause against(i). Po.No.91302 dt:17.06.14 on M/s. Stone
India Ltd/Kol,
(ii)PO.No.91301 dt:17.06.14 on M/s.Kapsons Industries
Ltd/Jalandhar,
(iii).Po.NO.91300 dt:17.06.14 on M/s.I.C.Electrical Co Pvt Ltd/NDLS
Ref : Dy.CMM/Elecs Note No:37 to 40 of Case file No. PE.45.13.1043.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/Elec,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item five Purchase Orders
have been placed on three firms(i)M/s.Stone India Ltd/Kol Part-I (AIRRs.95,000per No
(ii)M/s.Kapsons Industries Ltd/Jalandhar
Part-II(AIR Rs.93270/-per no) & (iii)M/s.I.C.Electrical Co Pvt
Ltd/NDLS Part-I(AIR-Rs.95000/- per no with the acceptance of CMM
for a total value of Rs.1,32,39,450 (L/F-N/26 ).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above three firms on the basis of a Stock ANE/NS indent
received from units(f/340,349 of link file).
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the recommendations of
the subsequent tender committee. It is stated that a new tender
was opened on 28.08.14 for the subject item. The All inclusive
rate quoted in the new tender is Rs.98,784.40 per no for Part I
source and Rs.97,949.99 per no for Part II source. As the rates
of instant PO is Rs.95,000/- per no and Rs.93270/-per no, lower
than the subsequent tender and financially beneficial to

Railways. The TC recommended to cover the tender quantity of


20 Nos under 30% option clause duly dropping the procurement
on the subsequent tender as the rates quoted are on higher side
and further under stock demand the requirement is 75 Nos.
2. It is certified by the stores department that the performance of
the firms is
satisfactory. The firm M/s.Stone India
Ltd/Kol has supplied the 1st lot i.e 24 Nos well in time and for the
balance unsupplied quantity 18 Nos DP is ahead i.e on 28.02.15
& 30.06.15.(supplied-57%) M/s.Kapsons Industries Ltd/Jalandhar
has supplies the 1st lot well in time i.e 25 Nos and DP is ahead
for the balance unsupplied quantity of 10 Nos i.e on 28.02.15 &
30.06.15.(supplied-71%), M/s. I.C.Electrical Co Pvt Ltd/NDLS has
supplied 38 Nos (1st Lot) and for the balance unsupplied quantity
of 25 Nos DP is ahead i.e on 28.02.15(supplied-60%).

N/2
3.
1
2
3
4
5
6
7
8
9

The financial implications of the proposed option clause are as


follows:
Original Value of the three POs.
Original Qty in the POs.(42+35+63=140)
(+) 30% option quantity(13+11+19=43)
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto

Rs.1,32,39,450
140 Nos
43 Nos
Nil
43 Nos
Rs.40,65,970
Rs.1,73,05,420
CMM
30.06.15

4. Necessary ANE/ NS indent is available in the case file to cover the


above option quantity for 43 sets.
5. The proposal has the Administrative approval of CMM (Folio-N/51) for
exercising option clause on the above three firms.
6. In view of the financial advantage if approved option clause will be
exercised on M/s.Stone India Ltd/Kol Part-I against Po.No.91302
dt:17.06.14 for a quantity of 13Nos, on M/s.Kapsons

Industries Ltd/Jalandhar against PO.No.91301 dt:17.06.14 for


a quantity of 11Nos and On M/s.I.C.Electrical Co Pvt Ltd/Ndls
against Po.No.91300 dt:17.06.14 for a quantity of 19 Nos (Total
13+11+19=43 Nos only).
7. With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such,
the proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved, if approved we may
concur the proposal.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

NOTE/1
Sub :Procurement of Hand Brake Wheel..under (+) 30%
Option clause on M/s.Melbrow Engg Works Pvt
Ltd/Kolkata against Po.No.90093 &49011 of 23.01.14.
Ref : Dy.CMM/C&Ws Note No: 24,25 of Case file
No.PC.38.14.1607.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item two Purchase
Orders have been placed on (i) M/s.Melbrow Engg Works Pvt
LTd/Kolkata(All inclusive Rate Rs.746 for TYPS and Rs. 742/- for MFT
per No) with the acceptance of CMM for a total value of Rs.
42,41,896.45 (L/F-N/12) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on the firm M/s.Melbrow Engg Works Pvt Ltd/Kolkata,

as the rates received in subsequent new tender of this Railway are


on higher side.
The proposal has been examined and the following are the
observations:
1 The proposal is being initiated based on the higher rates
received on subsequent tender. It is stated that a new tender
was opened on 06.08.14 for the subject item. The All inclusive
rate accepted by the lowest tenderer in the new tender is
Rs.774.45 for RYPS and Rs. 775.50 for MFT. The new tender has
been finalized by the JAG tender committee duly recommending
to exercise (+)30% option clause on the instant Purchase Orders
(L/F-483). As such, Stores department is proposing to exercise
(+)30% option clause on the instant Purchase Order. As there is
a rate difference of Rs.28.45 per No, it is financially
advantageous to Railways in exercising (+)30% quantity
option clause for a quantity of 1981 Nos on the above
firm(Dy.CMM/RYPS-866 Nos & Dy.CMM/G&S/MFT-1115 Nos).
2 It is stated that the performance of the firm is satisfactory. It is
certified that the firm has supplied 4232Nos out of 5884 Nos
against Po.NO.90093 dt:23.01.14, and DD is ahead for the
balance quantity i.e upto 30.12.14(supplied 72%) and against
PO.No.49011 the firm has supplied the entire ordered quantity of
720 Nos (100% supplied)
3 The Delivery Period of the subject PO is available upto
30.12.2014.
4 Necessary ANE is available in the case file to cover the proposed
option quantity.
5 The proposal has
CMM(Folio-N/24).

the

Administrative

approval

of

N/2
6 The financial implications of the proposed option clause
are as follows:
1
2

Original Value of the two POs.


Original Qty in the instant

Rs. 44,74,896
6604 Nos

3
4
5
6
7
8
9

PO(5884+720=6604).
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction
required
Delivery period available upto

1981 Nos
Nil
1981Nos
Rs.14,73,366
Rs.59,48,262
CMM
30.12.2014

7 With the exercise of above option clause, the revised value will
be within
the powers of original accepting authority ie.,
CMM. As such, the proposal requires the concurrence of
Dy.CAO/S&W.
In view of the financial advantage involved in the proposed
option clause, if approved, we may agree for the proposed
option clause quantity of 1981 Nos on M/s. Melbrow Engg
Works Pvt Ltd/Kolkata against PO.No.90093 & 49011
dt:23.01.14.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

N/1

Sub :
Procurement of supply and installation and
commissioning and
testing of Microprocessor processor Based Locomotive
Control
system....under (+) 30% Option Clause on
M/s.Medha Sevo
Drives Pvt Ltd/HYB against Po.NO.29092,49081,49082
dated
19.02.13.
Ref
: Dy.CMM/DSLs Note No:57-59 of Case file
No.DSL.12.12.5031.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/DSL, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item Four Purchase
Order have been placed on M/s.Medha Servo Drives Pvt
Ltd/HYB(AIR-Rs.36,53,923.04 per set)with the acceptance of GM for
a total value of Rs.21,92,35,382.40(L/F-N/41).
Now, it is proposed to exercise (+)30% quantity option clause
on
M/s.
Medha
Servo
Drives
Pvt
Ltd/HYB,
PO.NO.29092,49081,49082 dt:19.02.13, as the demand is available
for the subject item to the extant of 13 Nos only and as per the
recommendations of subsequent TC placed at F/443 ante).
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the recommendations of
the subsequent tender committee at SAG level placed at
(L/F.441,442). It is stated that a new tender was opened on
16.07.14 for the subject item. The All inclusive rate quoted in the
new
tender
is
higher(REMMOLT+MBCS=AIRRs.4,10,625.45+33,04,466.49=37,15,091.94) as compared with
the instant PO rate Rs.36,53,923.04 and SAG tender committee
has recommended to drop the present tender and advised to
invoke +30% option clause on the instant Pos(L/F.443ante)so that it

is financially benefit to Railways and the same was accepted by


COS(F/441 TO 443). Difference in rate is Rs.37,15,091.94Rs.36,53,923.04=Rs.61,168.90*13Nos=Rs.7,95,195.70).
2.

Performance of the firm is certified as satisfactory. The firm has


supplied 33sets out of 60sets (i.e supplied 55%)and DP is ahead for
the balance quantity i.e upto 31.01.15.

3.

Necessary NS indent is available in the case file to cover the


proposed option clause(L/F-F454 to 458) for 13 Nos

4. CMM approval was obtained to operate +30% option clause.

N/2
5. The financial implications of the proposed option clause are as
follows:
1
Original Value of the PO.
Rs.21,92,35,382.4
0
2
Original Qty in the PO.
60sets
3
(+) 30% option quantity available 16 sets
for
4
Qty already utilized under option
Nil
clause
5
Now proposed qty under option
13sets
clause
6
Value of the proposed option Qty
Rs.4,75,00,999.52
7
Total Value of the POs after Rs.26,67,36,381.9
exercising (+) 30% option clause 2
(including already option clause
exercised POs)
8
Competency of Sanction required
GM
9
Delivery period available upto
31.01.2015
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie., GM.
As such, the proposal requires the concurrence of FA&CAO and
approval of COS before putting up the case file to GM.
In view of the financial advantage involved and as per the
recommendations of SAG, TC, the proposal can be considered and
conconcurrence signified for a quantity of 13sets against M/s.

Medha
Servo
Drives
Pvt
PO.NO.s.29092,49081,49082 dt:19.02.13

Ltd/Hyb

against

Submitted for kind perusal and orders please.


Sr.AFA/(SF)
Dy.CAO/S&W

FA&CAO/S&W

FA&CAO

N/1

Sub : Procurement of side frame key for CTRB under (+)


30%
Option Clause on M/s.Industrial Forge and Engg Co
Ltd/Jamshedpur against Po.NO.90939 dt:07.05.14.
Ref
: Dy.CMM/C&Ws Note No:17,18 of Case file
No.PC.38.13.1143.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.

For procurement of the above subject item two Purchase


Order have been placed on(i). M/s.Industrial Forge and Engg Co
Ltd/Jamshedpur(AIR-Rs.93.75
per
No),
(ii).Vivekananda
Forging/howrah(Firm failed to supply material till date, hence TC
does not recommend for operation of option clasue)with the
acceptance of CMM for a total value of Rs.64,50,093.75(L/F-N/11 ).
Now, it is proposed to exercise (+)30% quantity option clause
on M/s. Industrial Forge and Engg Co Ltd/Jamshedpur against
PO.NO.90939 dt:07.05.14 only as the demand is available for the
subject item and as per the recommendations of subsequent TC.
The proposal has been examined and the following are the
observations:
a. The
proposal
is
being
initiated
based
on
the
recommendations of the subsequent tender committee. It is
stated that a new tender was opened on 16.10.14. The All
inclusive rate accepted in the new tender is Rs.94.99. As the
rate of instant PO is lower thatn the subsequent tender and
financially beneficial to Railways, TC has recommended to
invoke (+) 30% option clause (L/f.200)on the instant PO for a
total quantity of 8256 Nos.
b. Performance of the firm is certified as satisfactory. The firm
has supplied the entire ordered quantity of 27520 Nos.
c. Necessary indent is available in the case file to cover the
proposed option clause.
d. Delivery period is available upto 10.01.2015.
e. CMM approval was obtained to operate +30% option clause.

N/2
f. The financial implications of the proposed option clause are
as follows:
1

Original Value of the PO.

Rs.64,50,093.75

2
3
4
5
6
7

8
9

Original Qty in the PO.


(+) 30% option quantity available
for
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
(including already option clause
exercised POs)
Competency of Sanction required
Delivery period available upto

27520 Nos
8256 Nos
Nil
8256 Nos
Rs.7,74,000
Rs.72,24,093.75

CMM
10.01.2015

With the exercise of above option clause, the revised value


will be with in the powers of original accepting authority ie.,CMM.
As such, the proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage involved and as per the
recommendations of TC, if approved we may concur the proposal
on M/s. Industrial Forge and Engg Co Ltd/Jamshedpur for a quantity
of 8256 Nos against PO.No.90939 dt:07.05.14.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

O FFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 04.12.2014
Dy.CMM/C&W
Sub : Procurement of side frame key for CTRB under (+) 30%
option
clause on M/s.Industrial Forge and Engg Co Ltd/Jamshedpur
against
Po.NO.90939 dt:07.05.14.
Ref : Dy.CMM/C&Ws Note No:17,18 of Case file No.PC.38.13.1143.
-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 16.10.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.94.99 per No for Part I firm,
whereas the instant Purchase Order rate is Rs.93.75 per No. In view of
the financial advantage and as recommended by JAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.Industrial Forge and Engg Co Ltd/Jamshedpur
against PO.NO.90939 dt:07.05.14 for a quantity of 8256Nos with
original terms and conditions with in Delivery Period.The total value after
exercising +30% option clause is Rs.72,24,093.75/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.

4. Ensuring availability of funds during the current financial year.


5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

FINANCIAL

For

O FFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 04.12.2014
Dy.CMM/C&W
Sub :
exercising of

Procurement of UIC type rubber vestibule Assembly.

(+) 30% Option Clause on M/s. Escorts


Ltd/Faridabad(P.O.No:91581
dt:28.06.13), M/s. Ameenji rubber Pvt Ltd/Sc(P.O.No.91580
dt:28.06.13).
Ref:Dy.CMM/C&Ws Note No:16,17,23to26 of Casefile No.
PC.30.12.2041.
-oOo-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 10.09.2014) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.36950 per No for Part I firm and
Rs.32384.96 per no for Part II firm, whereas the instant Purchase Order
rate is Rs.29470.90 per no for Part I firm and Rs.28885.92 for Part II firm.
In view of the financial advantage and as recommended by JAG tender
committee, finance concurrence is hereby signified for exercising (+)

30% Option Clause on M/s.Escorts Ltd/Faridabad against


PO.NO.91581 dt 28.06.13 for a quantity of 36Nos and on
M/s.Ameenji rubber against PO.NO.91580 dt.28.06.13 for a
quantiy of 107nos Total(36+107=143Nos) with original terms and
conditions with in Delivery Period.The total value after exercising +30%
option clause is Rs. 1,81,51,815.2/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.
O FFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 04.12.2014
Dy.CMM/Elec
Sub : Procurement of Valve regulated Lead Acid Battery of 2 V -1100AH
capacity.
Exercising of (+) 30% Option Clause against Po.No.92848
dt.06.11.14,92959
dt:25.11.13,92487 dt:06.11.14.
Ref : Dy.CMM/Elecs Note No:47 to 51 of Case file No. PE.45.13.1021.
&&&

The proposal received in connection with exercising (+) 30% Option


Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
18.07.14) for the above subject item are on higher side. The rate accepted in the
new tender is Rs.11,11,527.66 per set for Part I source, and Rs. 11,01,581.74 per
set for Part II source- with PVC based on HZL lead price of Rs. 1,48,200), whereas
the instant Purchase Orders rates duly updating with PVC is Rs.11,10,950.48 for
Part I source and Rs. 11,01,582.48 per set for part II firm. In view of the financial
advantage to Railways and as recommended by SAG tender committe, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on (i).M/s.
Microtex Energy Pvt Ltd/SBC Part II against PO.NO.92848 dt:06.11.13 for a
quantity of 7sets (ii).M/s.HBL Power Systems Ltd/Hyb against Po.No.92959
dt:25.11.13 for a quantity of 13sets and (iii). M/s.Exide Ind Ltd/Kolkata against
PO.NO.92847 dt:06.11.13 for a quantity of 9 sets with PVC upper sealing
pegged down to rates obtained in the tender opened on 18.07.2014 and with
original terms and conditions with in Delivery Period. The total value of the
contract including 30% option clause is RS.14,41,17,761.71

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., AGM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.
NOTE/1
Sub : Procurement of FRP Loure Shutter for 2 feet wide
window.exercising of (+)

30% Option Clause against Po.No.91293 dt:03.06.13 & 91294


dt:03.06.13-reg.
Ref : Dy.CMM/C&Ws Note No:21,22,25 to 28of Case
fileNo.PC.30.13.1263.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders
have been placed on M/s.Excel Composites Pvt Ltd/Kolkata &
M/s.Fibro Plastichem India Pvt Ltd/Kolkata(AIR- Rs.836.30per No.)
with the acceptance of CMM for a total value of Rs.42,58,439.60 (L/FN/10).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on M/s. Excel Composites Pvt Ltd/Kolkata only as against M/s. Fibro
Plastichem India Pvt Ltd/Kolkata Delivery period expired on 31.12.2013
i.e before the new tender is opened(Hence option clause not exercised).
The proposal has been examined and the following are the
observations:
1

The proposal is being initiated based on the higher rates


received on subsequent tender. It is stated that a new tender
was opened on 27.03.14 for the subject item. The All inclusive
rate accepted by the lowest tenderer in the new tender is
Rs.895.34 for Mft and Lgd and Rs.935.34 for TPTY, BZA,GTPL.
whereas the instant PO rate is Rs.836.30 per No. The new tender
has been finalized by the JAG tender committee duly
recommending to exercise (+)30% option clause on the instant
Purchase Order. As such, Stores department is proposing to
exercise (+)30% option clause on the instant Purchase Order. As
there is a rate difference of Rs.59.04 per No, it is financially
advantageous to Railways in exercising (+)30% quantity
option clause for a quantity of 917 Nos on M/s. Excel Composites
Pvt Ltd/Kolkata against PO.No.91293 dated 03.06.13.Further, in
the tender opened on 28.07.14 the rates are higher i.e
Rs.914.84per No.
2 It is stated that the performance of the firm is satisfactory.
It is certified that the firm has supplied 1458 Nos out of 3055

Nos and DP is ahead for the balance quantity i.e 23.12.14,


further,1597 Nos are put up for inspection (supplied-48%).
3 The Delivery Period of the subject PO is available upto
23.12.14.
4.

Necessary ANE is available in the case file to cover the


proposed option quantity

NOTE/2
5.. The financial implications of the proposed option clause are
as follows:
1
2
3
4
5
6
7
8
9

Original Value of the POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction
required
Delivery period available upto

Rs. 42,58,439.60
3055 Nos
917 Nos
Nil
917Nos
Rs.7,66,887.1
Rs.50,25,326.7
CMM
23.12.2014

With the exercise of above option clause, the revised


value will be with in the powers of original accepting authority
ie., CMM. As such, the proposal requires the concurrence of
Sr.AFA/SF.
In view of the financial advantage involved in the proposed
option clause, if approved, we may agree for the proposed
option clause proposal against Po.No.91293 dt:03.06.13 for
a
quantity of 917 Nos on M/s. Excel composites Pvt
Ltd/Kolkata.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of Carbon Brush Block for Hitachi.. - Exercising of
(+) 30%
quantity Option Clause-reg.
Ref : Dy.CMM/Elec Note No:28,29,32 to36,39 of Case file No.
PE.25.13.4582.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/E, which
is placed at Folio-1 may kindly be perused.
For procurement of the above subject item three Purchase Order
have been placed on (i) M/s. Mercen India Pvt Ltd/Bangalore Part-II
(AIR- Rs.255.45 per No.)-Development order (ii) M/s.Assam Carbon
Products Limited /Guwahati Part-I (AIR Rs.282.72) & (iii)
M/s.Mercen India Pvt Ltd/Bangalore Part-I (AIR- Rs.282.72 per No.)Regular order with the acceptance of CMM for a total value of
Rs.1,30,92,125.43 (L/F-N/22).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on M/s. Mersen India Pvt Ltd/Bangalore Part II firm, earlier the

proposal was not concurred due to non availability of performance. As


against other two part I firms option clause already exercised(concurred
vide Lr.No.A/SF/Qo1 dated 26.08.2014).
The proposal has been examined and the following are the
observations:
1 Stores department has stated that a new tender was opened on
07.03.2014. It is observed that the rates received in new tender are on
higher side (AIR- 285.10 per No for development order Part II firm), (AIR
Rs.301.12 per unit for regular order Part I firm). As such, JAG tender
committee of the subsequent tender recommended to exercise (+)30%
option clause on LPOs ie., on the above three POs.(Rate Diff is
285.10-255.45=29.65 per unit for development order purchase
orders and 301.12-282.72=18.4 per unit for regular order
purchase orders), as it is financially benefit to Railways.
2 It is certified by the stores department that the performance of the
firms is
satisfactory. The firm M/s. Mercen India Pvt
Ltd/Bangalore Part-II has supplied 7,500Nos out of 11,863Nos total
ordered quantity ie. 63% of the originally ordered quantity.
3 Necessary ANE is available in the case file to cover the above option
quantity.
4 The proposal has the Administrative approval of CMM (Folio-N/29) for
exercising option clause on the above three firms.

N/2
5 The financial implications of the proposed option clause are as follows:
1

Original Value of the three POs.

2
3
4
5
6

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Rs.1,30,92,125.
43 .
47,452 Nos
14,236 Nos
10,677Nos
3,559 Nos
Rs.9,09,146.55

7
8
9

Total Value of the POs after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

Rs.1,68,45,181.
8
CMM
08.12.2014

With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved, if approved we may
concur the proposal on. M/s. Mercen India Pvt Ltd/SBC Pt.II for a quantity
of 3,599Nos against Po.No.92599 dt:03.10.13.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

NOTE/1
Sub : Procurement of Spring Plank for CASNUB-22 HS Bogie conforming
to WD17 under (+) 30% Option Clause (P.O No:91335 Dt:20.06.14 &
91336

Dt:20.06.14)
Ref : Dy.CMM/C&Ws Note No:15,16,17,20,21,26 of Case file No.
PC.38.13.1154.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders
have been placed on M/s.Anand sales corporation/Kolkata- Part II
firm(AIR-9267.34) & M/s.Devvrat Industrial corporation/KolkataPart I firm (AIR- Rs.9313.41 per No.) with the acceptance of Dy.CMM
for a total value of Rs.19,53,420.46 (L/F-N/13).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above two firms as recommended by subsequent tender
committee(F/144).
The proposal has been examined and the following are the
observations:
1 Stores department has stated that a new tender was opened on
25.07.14. It is observed that the rates received in new tender are on
higher side (Part I AIR-Rs.9652.28, Part II AIR-Rs.9603.30 per No). As
such, JAG tender committee of the subsequent tender recommended to
exercise (+)30% option clause on LPOs(F/144) ie., on the above two
POs.(Rate Diff is 9652.28-9313.41=338.87per unit for Part I
source and 9603.30-9267.34=335.96per unit for Part II source),
as it is financially benefit to Railways.
2 It is certified by the stores department that the performance of the
firms are
satisfactory. The firms has supplied the entire
order quantity.
3 Necessary ANE is available in the case file to cover the above option
quantity(F/163).
4 The proposal has the Administrative approval of Dy.CMM(Folio-N/15) for
exercising option clause on the above three firms.
5 Delivery period for the two Pos extended/refixed upto 23.01.2015.
6 The financial implications of the proposed option clause are as follows:
1

Original Value of the three POs.

Rs.

2
3
4
5
6
7
8

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required

19,53,420.46
210 Nos
63 Nos
Nil
63Nos
Rs.5,86,007.71
Rs.25,39,428.17
Dy. CMM

With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie.,Dy.CMM. As such, the
proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage involved and as recommend in
the subsequent TC, if approved we may concur the proposal on.
M/s.Anand Sales Corporation/Kolkata Part II for a quantity of 16Nos
against PO.No.91335 dt:20.06.14 & on M/s.Devvrat Industrial
corporation/Kolkata Pt.I for a quantity of 47Nos against Po.No.91336
dt:20.06.14.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 05.12.2014
Dy.CMM/C&W
Sub : Procurement of Spring Plank for CASNUB-22 HS Bogie conforming
to WD17 under (+) 30% Option Clause (P.O No:91335 Dt:20.06.14 &
91336
Dt:20.06.14)
Ref : Dy.CMM/C&Ws Note No:15,16,17,20,21,26 of Case file No.
PC.38.13.1154.
-oOo-oOoThe proposal resubmitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 25.07.14) for the above subject item is on higher side. The
rate accepted from lowest offer is Rs.9652.28per No for Part I firm and
Rs.9603.30per no for Part II firm, whereas the instant Purchase Order
rate is Rs.9313.41per no for Part I firm and Rs.9267.34 for Part II firm. In
view of the financial advantage and as recommended by JAG tender
committee, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s.Anand Sales Corporation/Kolkata(Part II
firm)against PO.NO.91335dt 20.06.14 for a quantity of 16 Nos
and on M/s.Devvrat Industrial Corpn/Kolkata(Part I firm) against
PO.NO.91336
dt.20.06.14
for
a
quantiy
of
47
Nos
Total(16+47=63Nos) with original terms and conditions with in Delivery

Period.The total value


Rs.25,39,428.17/-.

after

exercising

+30%

option

clause

is

The above concurrence is subject to the following:


(i)

Obtaining the Sanction of original accepting authority, ie.,


Dy.CMM.

(ii)

Ensuring that no lower rates have been received in terms of


para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

(iii)

Fixing reasonable delivery schedule for the enhanced


quantity.

(iv)

Ensuring availability of funds during the current financial


year.

(v)

Getting the MPOs vetted by Stores Finance section.

The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 05.12.2014
Dy.CMM/Elec
Sub : Procurement of Carbon Brush Block for Hitachi.. - Exercising of
(+) 30%

quantity Option Clause-reg.


Ref : Dy.CMM/Elec Note No:28,29,32 to36,39 of Case file No.
PA.25.13.4582.
-oOoThe proposal resubmitted in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 07.03.14) for the above subject item are on higher side i.e
Rs.301.12- Part I firm, Rs. 285.10 for Part II firm) when compared with the
rates of the instant purchase orders(Rs. 282.72 for part I firm and Rs.
255.45 for Part II firm). As the subsequent JAG tender committee also
recommended to exercise option clause on the Last Purchase Orders in
view of the financial advantage involved, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s. Mercen India Pvt
Ltd/Bangalore Part-II for a quantity of 3559 Nos each, with original
terms and conditions with in Delivery Period. concurrence for other firms
M/s Assam Carbon Products Part I firm and M/s. Mercen India Pvt Ltd Part I
firm already conveyed vide Lr.No.ASF/Q01 dated 26.08.14.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Ensuring reduction of enhanced quantity from the future tenders.
6. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
O FFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 08.12.2014
Dy.CMM/C&W
Sub : Procurement of Hand Brake wheel . exercising of (+) 30%
Option
Clause on M/s.Melbrow Engg Works Pvt Ltd/Kolkata against
Po.No.90093& 49011 of 23.01.2014
Ref:Dy.CMM/C&Ws Note No:24,25 of case file No.PC.38.14.1607.
-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 06.08.14) for the above subject item is on higher side. The
rate accepted from lowest offer is Rs.774.45 for RYPS & Rs.775.50 for
MFT, whereas the instant Purchase Order rate is Rs.746/- for TYPS and
Rs.742/- for MFT. In view of the financial advantage and as recommended
by JAG tender committee, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Melbrow Engg Works Pvt
Ltd/Kolkata against PO.NO.90093 dt 23.01.14 for a quantity of
1765Nos and
on Po.NO.49011 dt:23.01.14 for a quantiy of
216nos Total(1765+216=1981Nos) with original terms and conditions
with in Delivery Period.The total value after exercising +30% option
clause is Rs. 1,59,48,262/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2.
3. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
4. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.

5 Getting the MPOs vetted by Stores Finance section.


This issues with the approval of Dy.CAO/S&W
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd
FLOOR,SECUNDERABAD
No.ASF/Q 01
Dt. 12.12.2014
Dy.CMM/DSL
Sub : Procurement of supply and installation and commissioning
and testing
of Microporciessor Processor based Locomotive Control
system
Exercising of (+) 30%.Option Clause on M/s. Medha Servo
Drives Pvt
Ltd/Hyb against Po.Nos.29092,49081,49082 dated 19.02.13
Ref : Your Note No:57 to 59 of case file No. DSL/12.12.5031.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 16.07.2014) for the above subject item is on higher side. The
All Inclusive rate quoted in the new tender is higher (REMMOLT+MBCSRs.37,15,091.94) as compared with the instant PO rate Rs.36,53,923.04,
as such SAG tender committee has recommended to drop the present
tender and advised to invoke +30% option clause on the instant POs so
that it is financially benefit to Railways, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s.Medha Servo
Drives Pvt Ltd/Hyb against PO.NO.29092,49081,49082 dt
19.02.13 for a quantity of 13sets as proposed with original terms
and conditions with in Delivery Period.The total value after exercising
+30% option clause is Rs. 26,67,36,381.92/-.
The above concurrence is subject to the following:

1. Obtaining the Sanction of original accepting authority, ie., GM.


2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/79
Sub : Procurement of Axle Box Housing .- Exercising of
(+) 30%
Option Clause.P.O.No:91265 Dt:31.05.13 against M/s.
Rine
Engineering Pvt Ltd/Baddi.
Ref :Dy.CMM/C&Ws Note No:14,15,18 to 22 of Case file No.
PC/30.12.1102.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase
Order has been placed on M/s. Rine Engineering Pvt Ltd/Baddi
at an all inclusive rate of Rs.10,100/- per number and at a total
value of Rs. 72,31,600 with the acceptance of CMM (L/F-N/10).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.

The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the recommendations of
the subsequent tender committee. It is stated that a new tender
was opened on 06.03.2014 for the subject item. The All inclusive
rate accepted in the new tender is Rs.10,351.16 each (AIR). As the
rates of instant PO is lower than the subsequent tender and
financially beneficial to Railways, JAG tender committee has
recommended to invoke (+)30% option clause (L/F-265ante) on the
instant PO for a total quantity of 214 Nos.
2. It is certified by the stores department that the performance of the
firm is
satisfactory. The firm has supplied the entire order
quantity of 716 Nos with in the delivery date.
3. The delivery period was refixed upto 20.01.2015 vide F./281.
4. The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6

Original Value of the PO.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

Rs.72,31,600
716 Nos
214 Nos
Nil
214 Nos
Rs.21,61,400/
Rs.93,92,997.
14
COS

NOTE/80
5. Necessary ANE is available (L/F-268) in the case file to cover the
proposed option quantity.
6. With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As
such, the proposal requires the concurrence of Dy.CAO/S&W.
7. In view of the financial advantage involved and as recommend in
the subsequent TC, if approved we may concur the proposal on.
M/s. M/s. Rine Engineering Pvt Ltd/Baddi for a quantity of
214Nos against PO.No.91265 dt:31.05.13

Submitted for kind perusal and orders please.


SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub : Procurement of PVC insulated, armoured unscreened
underground power cable size 2 Core * 25sqmm under
(+) 30% Option Clause.
Ref : Dy.CMM/S&Ts Note No:119 to122of Case file
No.PS.56.13.1032.

-oOoA proposal seeking finance concurrence for operating (+)


30% option clause on the above subject item, received from
Dy.CMM/S&T, which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item twenty one
Purchase Orders have been placed on Nine firms(i) M/s.Scot
Innovation Wires & cables Pvt Ltd Part II firm(AIR-113275 per Km)minus option clause not exercised as the firm supplied the entire
ordered quantity (ii). M/s. Finecab Wires and cables Pvt Ltd part II
firm (AIR-109539.76 per Km)(DP expired, hence option clause not
exercised),(iii). M/s.Advance cables Technologies Pvt Ltd part II(AIR113275/-) (executive will be advised to process a proposal for
minus option clause)(iv). Atlanta Tele cables(part II firm)(AIR113270/-) DP expired before opening of new tender, hence option
not exercised) (v). CMI Ltd(part II firm) (Air-109539.76) contract
terminated and BG forfeited(vi). M/s.Tirupati Plastomatics Pvts Ltd
Part I firm(AIR-113461.08/-) DP expired before opening of new
tender, hence option clause not exercised(vii.) M/s. Kanhha cables
Pvt Ltd Part I firm(AIR-113461.08/-- DP expired before opening of
new tender(viii)M/s.Paramount communications Ltd Part I firm (AIR113461.08/-) DP expired before opening of new tender(ix). M/s.
J.K.CablesLtd-Part I firm(AIR-1,13,461.08)- exeutive proposed to
operate option clause as the rates obtained in the subsequent
tender are on higher side- with the acceptance of COS for a total
value of Rs.9,46,92,597.08(L/F-N/66) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on M/s. J.K.Cables Ltd Part I firm as the rates obtained
in the subsequent tender are on higher side and as against other
firms DP expired in some cases before opening of the subsequent
tender,hence option clause not exercised.
The proposal has been examined and the following are the
observations:
1. It is stated that a new tender was opened on 05.12.2014 in
which the lowest technically suitable Part-I firm quoted
Rs.1,27,815-(AIR) (L/F-1009), whereas the subject POs rates
updated is Rs. 1,20,447.49(AIR). The new tender is not yet
finalized. However, as the Delivery Period of the firm
M/s.J.K.Cables Ltd is about to expire on 29.12.2014, Stores
department is proposing to exercise (+)30% option clause on

the above firm as it is financially advantageous to Railways in


exercising quantity option clause.

2. It is stated that the performance of the above firm is


satisfactory. However,
it is learnt that the firm M/s.J.K.Cables Pvt ltd has supplied
167.765 Km out of total ordered quantity of 218.18 Km( supplied
-77%).
3. Necessary indent is available for a quantity of 145 Km.
4. The financial implications of the proposed option clause are
as follows:
1

Original Value of the Nineteen POs. (L/F-N/66)

2
3

Original Qty in the POs.


(+) 30% option quantity
available(218.18*30%)
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

4
5
6
7
8
9

5.0

Rs.9,46,92,597.0
8
837.99 Km
65.454Kms
Nil
65.454 Kms
Rs.78,83,769.79
Rs.10,25,76,366.
87
COS
29.12.2014

With the exercise of above option clause, the revised value


will be with in the powers of original accepting authority ie.,
COS. As such, the proposal requires the concurrence of
FA&CAO/S&W.

In view of the financial advantage involved, if approved we may


concur the proposal to exercise (+)30% quantity option clause for a
total quantity of
65.454 kms on (i)M/s.J.K.Cables Ltd against
Po.Nos.29031
dt:24.01.14,34012
dt:24.01.14,23017
dt:24.01.14,54005 dt:24.01.14,62505 dt:24.01.14 with PVC upper
sealing may be pegged down to rates obtained in the
tender opened on 05.12.2014.Further, we may advise to reduce
the above option quantity in the subsequent new tender and
finalize the same.

Submitted please.
Sr.AFA/SF

Dy.CAO/S&W

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

(S&W),

No.ASF/Q 01
Dt. 22.12.2014
Dy.CMM/C&W
Sub : Procurement of Air Brake Hose Coupling assembly
under (+) 30% Option Clause-reg.
Ref : Your Note No:88 to 89 of Case file No.PW.38.13.1543.
-oOoThe proposal received in connection with exercising of (+)
30% Option Clause on the above subject item Purchase Orders has
been examined.
It is observed that the rates received in subsequent tender
(ie., opened on 25.02.14 & 26.09.14 for the above subject item are
on higher side when compared with the rates of the instant
purchase orders. In view of the financial advantage to Railways,
finance concurrence is hereby signified for exercising (+) 30%
Option Clause on (i) M/s.Avadh Rubber/Haridwar for a quantity of
1851 Nos against PO.NO. 90924 dt:07.05.14 only with original

terms and conditions with in Delivery Period. Further, as regards to


M/s. General Rubber Co P Ltd/NDls after satisfactory performance
the case may be processed for concurrence and as against expired
purchase orders(M/s. A.B.Elasto Products Pvt Ltd, M/s.IMT cables Pvt
Ltd & ASP sealins Products ltd) it is advised to take consent from
the firms for accepting 30% option clause and refix the DP for the
enhanced quantity and resubmitted so that financial advantage is
not lost.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.
Fixing reasonable delivery schedule for the enhanced
quantities.
4.
Ensuring availability of funds during the current financial
year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
O FFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 22.12.2014
Dy.CMM/C&W
Sub :
Option

Procurement of Axle housing

. exercising of (+) 30%

Clause on M/s.Rine Engineering Pvt Ltd/Baddi against Po.no.


91265

dt:31.05.13.
Ref:Dy.CMM/C&Ws
No.PC.30.12.1102.

Note

No:14,15,18

to

22

of

case

file

-oOoThe proposal received in connection with exercising (+) 30% Option


Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 06.03.2014) for the above subject item is on higher side. The
rate accepted from lowest offer is Rs.10351.16, whereas the instant
Purchase Order rate is Rs.10,100/- . In view of the financial advantage
and as recommended by JAG tender committee, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s.Rine
Engineering Pvt Ltd/Baddi against PO.NO.91265 dt 31.05.2013
for a quantity of 214Nos with original terms and conditions with in
Delivery Period.The total value after exercising +30% option clause is Rs.
93,92,997.14/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
For FA&CAO/S&W.

In continuation to the section note at pre-page, Add.CMD has


resubmitted the proposal duly clarifying(F/60/C) in response to this
office observations placed at F/59/C, which may kindly be perused.
It is certified by Addl CMD that 500 Nos of equipments were
supplied before the expiry of the contract period i.e 09.09.2014 and
No local purchase were made after the expiry of rate contract
period(F/60/C).
As regard to entering into rate contract is time consuming, it
is clarified that due to typing error it was typed as Rate contract
instead of open tender is time consuming.
In view of the above, if approved we may signify the
concurrence as proposed to enter into Rate contract for a period of
2 years for procurement of Hearing Aid on Open Tender Basis as
against Limited tender proposed, for smooth running of hosipital
and timely supplies to patients.
FA&CAO/S&W may accord approval.
Submitted please.
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
29.12.2014
Dy.CMM/S&T

Dt.

Sub : Procurement of PVC insulated, armoured unscreened


underground power cable size 2 Core * 25sqmm under (+)
30% Option Clause against
Po.Nos.29031,34012,23017,54005,62505 dated 24.01.2014.
Ref : Dy.CMM/S&Ts Note No:119 to122of Case file
No.PS.56.13.1032.
-oOo-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 05.12.2014) for the above subject item is on higher side. The rate obtained
from lowest offer is Rs.1,27,815, whereas the instant Purchase Order updated
rate is Rs.120447.49/- . In view of the financial advantage and as DP is expiring
on 31.12.2014, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.J.K.Cables Ltd against PO.NO.29031 dt:24.01.14 for
a quantity of 12.084 Km, Po.NO.34012 dt:24.01.2014 for a quantity of
26.019 Km , Po.No.23017 dt:24.01.2014 for a quantity of 2.25Km,
PO.NO.54005 dt:24.01.14 for a quantity of 18.633 Km and
Po.NO.62505
dt:24.01.14
for
a
quantity
of
6.468Km
total
quantity(12.084+26.019+2.25+18.633+6.468=65.454) with PVC upper
ceiling pegged down to rates obtained in the tender opened on 05.12.2014
and with original terms and conditions with in Delivery Period.The total value
after exercising +30% option clause is Rs. 10,25,76,366.87/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3. Fixing reasonable delivery schedule for the enhanced quantity.


4. Ensuring availability of funds during the current financial year.
5 Getting the MPOs vetted by Stores Finance section.
Further, if rates are reduced after negotiation then COS should not operated
option clause. Since, DP of the firm is expiring on 29.12.2014, option clause is
agreed to, subject to final rate being higher in the subsequent tender opened on
05.12.14, than the present rate.
This issues with the approval of FA&.CAO/S&W
Encl : The concerned file.

( K.HEMA )
AAO/SF
For FA&CAO/S&W.
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
30.12.2014

Dt.

Dy.CMM/Elec

Sub : Procurement of Low Mintenance diesel Loco starter battery 8 V 500


AH
capacity. under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:43 to 47 of Case file No. PE.45.13.1056.
-oOoThe proposal received in connection with exercising (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 14.08.14) for the above subject item is on higher side. The rate obtained
from lowest offer is Rs.41,077.37 per unit for PartI firm, whereas in the instant
Purchase Order updated rate is Rs.40,893.27 per unit. In view of the financial
advantage and Sr. Scale tender committee recommendation
finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.M/s. Celtek Batteries Pvt Ltd against PO.NO.90479 dt:11.03.14 for
a quantity of 5 Nos and on M/s.HBL power Ltd/Hyb against
PO.No.90477
dt:11.03.14
for
a
quantity
of
14
Nos
total
quantity(5+14=19 Nos) with PVC upper ceiling pegged down to rates

obtained in the tender opened on 14.08.14 or actual whichever is lower and


with original terms and conditions with in Delivery Period. The total value after
exercising +30% option clause is Rs. 83,18,160.48.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5 Getting the MPOs vetted by Stores Finance section.
This issues with the approval of Dy.CAO/S&W
Encl : The concerned file.

( K.HEMA )
AAO/SF
For FA&CAO/S&W.

NOTE/1
Sub : Procurement of M.S Flats .exercising of (+)30%
Option Clause
against Po.No.90733 dt:11.04.14 on M/s. Pushpa Ispat
Pvt
Ltd/SC.
Ref : Dy.CMM/Gs Note No:35 of Case fileNo.PB.90.13.1156.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/G, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item a Purchase Order
is placed on M/s.Pushpa Ispat Pvt Ltd/SC(AIR- Rs.46,200 per
MT) with the acceptance of CMM/G
for a total value of
Rs.44,35,200/- (L/F-N/25).

The proposal has been examined and the following are the
observations:
1

The proposal is being initiated based on the higher rates


received on subsequent tender. It is stated that a new tender
was opened on 20.08.2014 for the subject item. The All
inclusive rate accepted in the subsequent tender is
Rs.47,831.64 per Mt, whereas the instant PO rate is Rs.
46,200 per MT. In view of the financial advantage and as per
the recommendation of JAG tender committee (+)30%
quantity option clause for a quantity of 28.8 MT on
M/s.Pushpa Ispat Pvt Ltd/Sc against PO.No.90733 dt:11.04.14.

2 It is stated that the performance of the firm is satisfactory.


The material was inspected and passed for a quantity of 96
MT (total ordered quantity) vide IC at F-285The Delivery
Period of the subject PO is expiring on 31.12.2014.
3. Necessary ANE is available in the case file to cover the
proposed option quantity.
4.
The financial implications of the proposed option clause
are as follows:
1
2
3
4
5
6
7
8
9

Original Value of the POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction
required
Delivery period available upto

Rs. 44,35,200
96MT
28.8MT
Nil
28.8MT
Rs.13,30,560
Rs.57,65,760
CMM
31.12.2014

With the exercise of above option clause, the revised


value will be with in the powers of original accepting authority
ie., CMM. As such, the proposal requires the concurrence of
Sr.AFA/SF.

In view of the financial advantage involved in the


proposed option clause, if approved, we may agree for
the
proposed
option
clause
proposal
against
Po.No.90733 dt:11.04.14 for a quantity of 28.8Mt on
M/s.Pushpa Ispat Pvt Ltd
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 31.12-2014
Dy.CMM/G
Sub : Procurement of M.S Flats .exercising of (+)30% Option
Clause
against Po.No.90733 dt:11.04.14 on M/s. Pushpa Ispat Pvt
Ltd/SC.
Ref : Dy.CMM/Gs Note No:35 of Case fileNo.PB.90.13.1156.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 20.08.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.47,831.64 per MT, whereas the
instant Purchase Order rate is Rs.46,200. In view of the financial
advantage and as recommended by JAG tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Pushpa Ispat Pvt Ltd/SC for a quantity of 28.8MT against
Po.NO.90733 dt:11.04.14 with original terms and conditions with in
Delivery Period. The total value after exercising +30% option clause is Rs.
57,65,760.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.

4. Ensuring availability of funds during the current financial year.


5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1
Sub : Procurement of Pin with Bulb cotter..exercising of
(+)30%
Option Clause against Po.No.90061 dt:22.01.14 on
M/s.Debasis
Industries/Howrah.
Ref : Dy.CMM/C&Ws Note No:17 to 18 of Case
File No.PW.38.13.1800.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item two Purchase
Orders
have
been
placed
on
M/s.Debasis
Industries/Howrah(AIRRs.42.03
per
No),
M/s.T.B.S.Engineering Works/Howrah(AIR-Rs.42.03 per No)
(DP expired on 30.05.14 i.e before opening of new tender,
hence option clause not exercised) with the acceptance of
Dy.CMM for a total value of Rs.11,90,205.54/- (L/F-N/12).
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the higher rates

received on subsequent tender. It is stated that a new tender


was opened on 15.10.2014 for the subject item. The All
inclusive rate accepted in the subsequent tender is Rs.42.60
per No, whereas the instant PO rate is Rs. 42.03 per No. In
view of the financial advantage and as DP is expiring on
06.01.15 (+)30% quantity option clause for a quantity of
1731 Nos on M/s.Debasis Industries/Howrah against
PO.No.90061 dt:22.01.14.
2. It is stated that the performance of the firm is satisfactory.
The firm has supplied 5701 Nos out of total order quantity of
5769Nos. The Delivery Period of the subject PO is expiring
on 06.01.2015.
3. Necessary ANE is available in the case file to cover the
proposed option quantity.
4. The financial implications of the proposed option clause are
as follows:

Original Value of the POs.

2
3
4

Original Qty in the instant PO.


(+) 30% option quantity available
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

5
6
7
8
9

Rs.
11,90,205.54
28318Nos
1731Nos
Nil
1731Nos
Rs.72,753.93
Rs.12,62,959.4
7
Dy.CMM
06.01.15

With the exercise of above option clause, the revised


value will be with in the powers of original accepting authority
ie.,Dy.CMM. As such, the proposal requires the concurrence of
Sr.AFA/SF.
In view of the financial advantage involved and as per
the
TC recommendation in the subsequent tender, if
approved, we may agree for the proposed option clause
proposal against Po.No.90061 dt:22.01.14 for a quantity of
1731 Nos on M/s.Debasis Industries /Howrah.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of Flexible PolyVinyl chloride(PVC)..exercising of
(+)30%
Option Clause against Po.No.90459 dt:06.03.14 on M/s.Responsive
Industries/Mumbai.
Ref : Dy.CMM/Gs Note No:15 to 17 of Case fileNo.PO.75.13.1416.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/G, which
is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item a Purchase Order was
placed on M/s.Responsive Industries/Mumbai(AIR- Rs.5397.85 per
No) with the acceptance of CMM/G for a total value of Rs.55,59,785.50/(L/F-N/11).
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the higher rates
received on subsequent tender. It is stated that a new tender

was opened on 19.12.2014 for the subject item. The All inclusive
rate quoted by the L1 in the subsequent tender is Rs.10,641.80
per No, whereas the instant PO rate is Rs.5,397.85 per No. The
new tender is not yet finalized. However, as the Delivery Period
of the firm M/s.Responsive Industries/Mumbai is about to expire
on 31.12.2014, Stores department is proposing to exercise
(+)30% option clause on the above firm as it is financially
advantageous to Railways in exercising quantity option clause.
2.

It is stated that the performance of the firm is satisfactory.


The firm has supplied 1030Nos before the Delivery Period

3.

Necessary ANE is available in the case file to cover the


proposed option quantity.

4. The financial implications of the proposed option clause are


as follows:
1

Original Value of the POs.

2
3
4

Original Qty in the instant PO.


(+) 30% option quantity available
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8
9

Total Value of the POs after


exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.55,59,785.5
0
1030Nos
309Nos
Nil
309Nos
Rs.16,67,935.6
5
Rs.72,27,721.1
5
CMM
31.12.2014

With the exercise of above option clause, the revised


value will be with in the powers of original accepting authority
ie.,CMM. As such, the proposal requires the concurrence of
Sr.AFA/SF.
In view of the financial advantage involved in the
proposed option clause, if approved, we may agree for the
proposed option clause proposal against Po.No.90459
dt:06.03.14 for a quantity of 309Nos on M/s.Responsive
Industries/Mumbai.

Submitted for kind perusal and orders please.


SSO(A)/SF
Sr.AFA/SF

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 31.12-2014
Dy.CMM/G
Sub : Procurement of M.S Flats .exercising of (+)30% Option
Clause
against Po.No.90733 dt:11.04.14 on M/s. Pushpa Ispat Pvt
Ltd/SC.
Ref : Dy.CMM/Gs Note No:35 of Case fileNo.PB.90.13.1156.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 20.08.14) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.47,831.64 per MT, whereas the
instant Purchase Order rate is Rs.46,200. In view of the financial
advantage and as recommended by JAG tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Pushpa Ispat Pvt Ltd/SC for a quantity of 28.8MT against
Po.NO.90733 dt:11.04.14 with original terms and conditions with in
Delivery Period. The total value after exercising +30% option clause is Rs.
57,65,760.

The above concurrence is subject to the following:


6. Obtaining the Sanction of original accepting authority, ie., CMM.
7. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
8. Fixing reasonable delivery schedule for the enhanced quantity.
9. Ensuring availability of funds during the current financial year.
10. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.

( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 31.12-2014
Dy.CMM/G
Sub : Procurement of Flexible PolyVinyl chloride(PVC)..exercising of
(+)30%
Option Clause against Po.No.90459 dt:06.03.14 on M/s.Responsive
Industries/Mumbai.
Ref : Dy.CMM/Gs Note No:15 to 17 of Case fileNo.PO.75.13.1416.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 19.12.2014) for the above subject item is on higher side. The
rate quoted by the lowest offer is Rs.10,641.80 per No, whereas the
instant Purchase Order rate is Rs.5397.85 per No. In view of the financial
advantage and as the Delivery Period of the subject Po is expiring on
31.12.2014 , finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s.Responsive Industries/Mumbai for a
quantity of 309Nos against Po.NO.90459dt:06.03.14 with original terms
and conditions with in Delivery Period. The total value after exercising +30%
option clause is Rs. 72,27,721.15.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.

It is further advised that the above option quantity of 309 Nos may
be reduced in the quantity to be procured in the subsequent new
tender, which was opened on 19.12.2014.
Encl : The concerned file.
( A.
K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1
Sub : supply of Modified Elastomeric Pads.. under (+) 30%
Option
Clause, against M/s.Basant Rubber factory Ltd/Mumbai
& M/s.Prag Industires India Pvt Ltd/Lucknow.
Ref : Dy.CMM/C&Ws Note No:43 to 47of Case file
No.PW.38.13.1145.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item four Purchase
Orders have been placed on (i) M/s.Basant Rubber Factroy
Ltd/Mumbai, Part I firm(AIR- Rs.972 per No) (ii) M/s.Prag
Industries India Pvt ltd Part I firm(AIR- Rs.972 per No.), (iii)
M/s.MGM Rubber company/Kolkata Part II firm(AIRRs.920.23 per No) & (iv)M/s.Howrah Forgings Ltd/Kolkata Part
II firm(AIR- Rs.920.25per No) with the acceptance of COS for a
total value of Rs.6,90,83,864.66(L/F-N/32) with (+)30% option
clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on M/s. Basanth Rubber Factory Ltd & M/s. Prag
Industries India Pvt Ltd only as regards to other firms performance
is not satisfactory, hence option clause not exercised.
1. It is stated that a new tender was opened on 05.11.14 in which
the L1 Part I tenderer has quoted AIR Rs.1048.82 per No. The
instant POs rate is AIR Rs.972 per No, similarly, the rates
quoted by L1 Part II firm is AIR- Rs.967.42, whereas the Instant
PO rate is AIR- Rs.920.23 per No. The new tender has been
dropped as the rates received are on higher side and duly
recommending to exercise (+)30% option clause in the instant
Purchase Order(L/F-454), as the quantity to be procured is
35,289 Nos the excess Qty of 27,627 Nos available and 30%
option clause at lower rate for 21,609Nos put together works out
to 48,867 Nos representing 13 months requirements that will be
very much sufficient for next CP. Hence it is proposed not to
procure any quantity against the present tender and recommend
to discharge the tender and drop the procurement action. As
such, Stores department is proposing to exercise (+)30% option
clause on the instant Purchase Orders. As it is financially

advantageous to Railways in exercising (+)30% quantity


option clause for a quantity of 21,609 Nos on the above firms.
Since the Performance of the firms M/s. MGM Rubber Company
and M/s. Howrah Forgings Ltd/Kolkata are Poor, executive has
not recommended for option clause and procurement action for
a quantity of 16207 Nos only.
2. It is stated that the performance of the firm is satisfactory.
However, it is observed that M/s. MGM Rubber Co/Kolkata &
M/s.Howrah Forgings Ltd/Kolkata has not commenced the
supplies, hence option clause cannot be exercised and as
against M/s. Prag industries India P Ltd/Lucknow the
firm has supplied 10,805 Nos out of total ordered
quantity of 21610 Nos(supplied 50%),and DP is ahead for
the balance unsupplied quantity i.e upto 30.06.15, Hence
option clause is exercised on the above firm for a
quantity of 6483 Nos, as against M/s. Basant Rubber Factory
Ltd/Mumbai the firm has supplied 8,104 Nos against 32,415
Nos(supplied 25%only) and DP is ahead for the balance quantity.
As the supplied quantity is only 25% option clause will be
exercised after satisfactory performance.
3. The Delivery Period of the subject PO is available upto
30.06.2015.
4. Necessary Indent is available to cover the proposed option
clause quantity.
5. The financial implications of the proposed option clause are
as follows:
1

Original Value of the PO.

2
3
4
5
6
7

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.6,90,83,864
.66
72033 Nos
21,609 Nos
Nil
6483 Nos
Rs.63,01,476
Rs.7,53,85,340
.66
COS
30.06.2015

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage and as per the recommendations
of the subsequent tender committee option clause is exercised on M/s.
Prag Industries India Pvt Ltd for a quantity of 6483 Nos against
Po.No.91809 dt:12.08.14. and as against other firms after satisfactory
performance option clause will be exercised.
Submitted for kind perusal and orders please.
SO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W
NOTE/1
Sub :- Procurement of Non Asbestos L type composite Brake Blocks.
Exercising of (-)30% option clause. P.O.No:92059
Dt:12.09.14.
Ref :- Dy.CMM/Dsls Note No. 28,29 of Case file No:Dsl.11.13.3690.
-oOoA proposal seeking finance concurrence for operating (-) 30%
option clause on the above subject item, received from Dy.CMM/DSL, is
placed at Folio-1/C which may kindly be perused.
Three Purchase Orders have been placed for procurement for the
above subject item on (i).M/s.BIC Auto Pvt Ltd/New Delhi, Part II firm(AirRs.525/- per No) (ii). M/s.Industrial Laminates Pvt Ltd/Mumbai, Part I
firm(Air- Rs.543) (iii). Rane Brake Lining Ltd/Chennai, Part I firm(AIRRs.543) for a total quantity of 15,883 Nos at a total value of
Rs.85,24,158/- with the acceptance of CMM/M (L/F-N/16).
Now, it is proposed to exercise (-) 30% option clause on the subject
P.O No. 92059 Dt:12.09.14 for a quantity of 1,392 Nos. As against other

firms, Delivery period expired and total ordered quantity supplied within
the DP expired on 31.07.14, Hence (-) 30% option clause not exercised.
The proposal has been examined and the following are the
observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the


above subject P.O, as the rate received in the tender opened
recently ie on 30.09.14, from lowest technically suitable offer is
Rs.521 per No(L/F-209), whereas the instant PO rate is Rs.543/per No.

(ii)

It is observed from the case file that it has been proposed to


exercise minus 30% option clause in view of the poor quanlity of
the material supplied. The firm still has to supply 4641Nos.

(iii)

As the original tender was finalized with JAG tender committee


and accepted by CMM, the above proposal requires the
concurrence of Sr.AFA/SF for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval


of CMM (Folio-N/29).

In view of the above, if approved we may concur the proposal to


exercise
(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 05.01.2015
Dy.CMM/C&W
Sub : Procurement of Pin with Bulb cotter..exercising of
(+)30%

Option Clause against Po.No.90061 dt:22.01.14 on


M/s.Debasis
Industries/Howrah.
Ref : Dy.CMM/C&Ws Note No:17 to 18 of Case
File No.PW.38.13.1800.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 15.10.2014) for the above subject item is on higher side. The
rate accepted from the lowest offer is Rs.42.60 per No, whereas the
instant Purchase Order rate is Rs.42.03 per No. In view of the financial
advantage, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Debasis Industries/howrah for a quantity of
1731Nos against Po.NO.90061dt:22.01.14 with original terms and
conditions with in Delivery Period. The total value after exercising +30%
option clause is Rs. 12,62,959.47.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., Dy.CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.
K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
05.01.2015

Dt.

Dy.CMM/C&W
Sub : Supply of Body side arrangement under (+)30%
Option
Clause.
Ref : Dy.CMM/C&Ws Note No:81 to 87 of Case File No.
PW.38.13.5058.
-oOo-

The proposal received in connection with exercising of (+) 30% Option


Clause on the above subject item Purchase Order has been examined and
the following are the observation.
1. The procurement was made in the month of OCT2013 and the TC
recommended to drop the procurement and advised to operate 30%
option clause as the rates received are same. As such whether the
subject item is required at this juncture may be furnished, since the
time taken for procurement of the subject item was long back i.e 1
Year 3 months.
2. It is advised to compare the rate with other railways for the subject
item, if not available in this railway to justify the rate reasonability. In
reply it is furnished that L1 rate of Rs 79635.15 against Tender
opened on 04.09.14 in Southern Rly has been compared and option
clause proposal was processed. Whereas, it is noticed that the rate of
instant PO is Rs.82,425.11(Regular order) and Rs.76,524/(development order). Hence, the L1 rate quoted in the subsequent
tender is lower than the Instant PO rate. The same may be clarified.

3. Details supply position may be furnished with documentation. The


DP is upto 31.01.15, as such immediate action may be taken in order
to avail Financial advantage to Railways. Further, whether the firm
has offered the material for inspection/dispatched/material received
in the depot and accounted may be furnished.
The case file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

(S&W),

No.ASF/Q 01
Dt. 09.01.2015
Dy.CMM/C&W
Sub : Supply of Modified Elastomeric Pads.. under (+) 30%
Option
Clause, against M/s.Prag Industires India Pvt
Ltd/Lucknow.
Ref : Dy.CMM/C&Ws Note No:43 to 47of Case file
No.PW.38.13.1145.
-oOoThe proposal received in connection with exercising of (+)
30% Option Clause on the above subject item Purchase Orders has
been examined.
It is observed that the rates received in subsequent tender
(ie., opened on 05.11.2014 for the above subject item are on higher
side when compared with the rates of the instant purchase orders.

In view of the financial advantage to Railways and SAG TC


recommendations , finance concurrence is hereby signified for
exercising (+) 30% Option Clause on (i) M/s.Prag Industries India
Pvt Ltd/Lucknow for a quantity of 6483 Nos against PO.NO. 91809
dt:12.08.14 only with original terms and conditions with in Delivery
Period. Further, as regards to M/s. MGM rubber co, M/s.Howrah
forgings Ltd,M/s. Basant Rubber Factory Ltd, it is advised that after
satisfactory performance option clause may be processed.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.
Fixing reasonable delivery schedule for the enhanced
quantities.
4.
Ensuring availability of funds during the current financial
year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Side frame friction liner..exercising of (+)30%
Option Clause against Po.No.91142 dt:28.05.14 on M/s.Melbrow
Engg Works
Pvt Ltd/Kolkata.
Ref : Dy.CMM/C&Ws Note No:29,30 of Case fileNo.PW.38.13.1134.
-oOo-

A proposal seeking finance concurrence for operating (+) 30%


option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item a Purchase Order was
placed on M/s.Melbrow Engg Works Pvt Ltd/Kolkata(AIR- Rs.204.35
per no) with the acceptance of Dy.CMM/C&W for a total value of
Rs.17,90,321.30/- (L/F-N/19).
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the higher rates
received in subsequent tender. It is stated that a new tender was
opened on 23.12.2014 for the subject item. The All inclusive rate
quoted by the L1 in the subsequent tender is Rs.284.50 per No,
whereas the instant PO rate is Rs.204.35 per No. The new tender
is dropped and JAG Tender committee recommended to operate
option clause as it is financially advantageous to Railways in
exercising option clause(F/179 of Link file).
2.

It is stated that the performance of the firm is satisfactory.


The firm has supplied 7198Nos entire ordered quantity before
the Delivery Period(F/175)

3.

Necessary ANE is available in the case file to cover the


proposed option quantity.

4. The financial implications of the proposed option clause are


as follows:
1

Original Value of the POs.

2
3
4

Original Qty in the instant PO.


(+) 30% option quantity available
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

5
6
7
8
9

Rs.17,90,321.3
0
7198Nos
2159Nos
Nil
2159Nos
Rs.4,41,191.65
Rs.22,31,512.9
5
Dy.CMM
05.02.2015

With the exercise of above option clause, the revised


value will be with in the powers of original accepting authority
ie.,Dy.CMM. As such, the proposal requires the concurrence of
Sr.AFA/SF.
In view of the financial advantage involved in the
proposed option clause, if approved, we may agree for the
proposed option clause proposal against Po.No.91142
dt:28.05.2014 for a quantity of 2159Nos on M/s.Melbrow
Engg Works Pvt Ltd/Kolkata.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 12.01.2015
Dy.CMM/C&W
Sub : Procurement of Side frame friction liner..exercising of (+)30%
Option Clause against Po.No.91142 dt:28.05.14 on M/s.Melbrow
Engg Works
Pvt Ltd/Kolkata.
Ref : Dy.CMM/C&Ws Note No:29,30 of Case fileNo.PW.38.13.1134.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 23.12.2014) for the above subject item is on higher side. The
rate quoted by the lowest offer is Rs.284.50 per No, whereas the instant
Purchase Order rate is Rs.204.35 per No. In view of the financial
advantage, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Melbrow Engg Works Pvt Ltd/Kolkata for a
quantity of 2159 Nos against Po.NO.91142 dt:28.05.2014 with original
terms and conditions with in Delivery Period. The total value after exercising
+30% option clause is Rs. 22,31,512.95.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., Dy.CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3. Fixing reasonable delivery schedule for the enhanced quantity.


4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.
K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

NOTE/1
Sub : Procurement of body side arrangement- Exercising of
(+) 30%
quantity Option Clause on M/s. RamaKrishna
engg/Howrah.
Ref : Dy.CMM/C&Ws Note No:81,86to 89 of Case file
No.38.13.5058.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/C&W, which is placed at Folio-1 may kindly be perused.
For procurement of the above subject item two Purchase
Orders have been placed on 2 firms viz., (i) M/s.Modern Hitech
Products
Pvt
ltd/Kolkata
(AIR-Rs.76,524/per
No)
(ii)M/s.Ramakrishna Engg/Howrah(AIR- Rs.82,425.11each) with
the acceptance of COS for a total value of Rs.3,27,60,035.20(L/FN/70).
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on M/s.RamaKrishna Engg/Howrah as the demand is
available for the subject item, and after satisfactory performance
option clause will be exercised on M/s. Modern Hitech Products Pvt
Ltd/Kolkata.
The proposal has been examined and the following are the
observations:
(i)

Earlier, the proposal was returned with some observations


vide letter placed at Flag-B, which may kindly be perused. As
the instant purchase order rate is higher than the subsequent
tender opened rate opened on 04.09.2014 at southern Railway,
the proposal was returned.

(ii)

In response to finance observations, Stores department


resubmitted the proposal duly endorsing the file to
FA&CAO/S&W, Stores department requested this office to concur
the proposal.

(iii)

It is stated by the stores department that L1 firm M/s. Uma


fabrication does not have performance as per SCR. Hence the
rate cannot be taken as base rate for comparison. Further, it is

stated that the tender was not finalized so far (position taken
over phone).
(iv)

As per tender eligibility conditions(L/F/N-54) the tenderer must


have supplied the same/similar items to SC Rly or other zonal
Rlys and documentary evidence must be furnished along with
their offer evidencing the execution of such purchase orders.
Hence rate justification not made. Further, it is to state that
without the outcome of the tender opened on 04.09.2014 the
case cannot be concluded.

(v)

Necessary NS indent (L/F-1075) is available in the case file to


cover the proposed option quantity.

(vi)

It is stated that the performance of the firm is satisfactory. The


firm has supplied 180Nos out of 360Nos, original Delivery period
is valid upto 05.02.2015(F/1088)

(vii)

The financial implications of the proposed option clause are


as follows:
1

Original Value of the POs.

2
3
4

Original Qty in the instant PO.


(+) 30% option quantity available
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8
9

Total Value of the POs after


exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.3,27,60,035
.20
400Nos
120Nos
Nil
108Nos
Rs.89,01,911.8
8
Rs.4,16,61,947
.08
COS
05.02.2015

With the exercise of above option clause, the revised


value will be with in the powers of original accepting authority
ie.,COS. As such, the proposal requires the concurrence of
FA&CAO/S&W.
In view of the non justification of rate, put up for orders
whether to concur the proposal to exercise (+)30% option clause
on the above firm or otherwise please.

Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 28.01.2015
Dy.CMM/C&W
Sub : Procurement of Body side arrangement ..- Exercising of (+)
30%
Option Clause on M/s. RamaKrishna
Engg/Howrah,P.O.No:79069
Dt:27.06.14.
Ref : Your Note No:81,86 to 89 of Case file No. PW.38.13.5058.
-oOo-

The proposal received in connection with exercising of (+) 30%


Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 04.09.2014 in Southern Railway) for the above subject item
L1rate is lesser than the present tender rate is on higher side. With
reference to Dy.CMM/C&W remarks that the firms doesnt have
performance on SCR, since the condition of performance on SCR is not
mandatory as performance on other Railways is accepted for awarding
tender. However, it remains to be seen whether this firm will get the PO
from Southern Railway till such time, the acceptability of this rate cannot
be confirmed. TC may go for negotiation also. Since DP of M/s.
Ramakrishna is available only upto 05.02.2015. Therefore it is advised to
either wait till offer of M/s. Uma fabricated (L1) is decided upon or
operate (+)30% option clause on rate of Rs. 79635.15 on M/s. Rama
Krishna Engg taking the firm rate prima-facie, with original terms and
conditions with in Delivery Period.
(i)
(ii)
(iii)

The above concurrence is subject to the following:


Obtaining the Sanction of original accepting authority, ie., COS.0.

Ensuring that no lower rates have been received in terms of


para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
(iii) Fixing reasonable delivery schedule for the enhanced quantity.
(iv.) Ensuring availability of funds during the current financial year.
(vi.)
Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GA
NESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
NOTE/1
Sub : Procurement of 80 column Dot Matrix printers for
printing UTS

tickets- Exercising of (+) 30% Option Clause on M/s


Atlantis
Enterprises, P.O.No:20070 dt:22.09.2014.
Ref :Dy.CMM/S&Ts Note No:24,25of Case file
No.PS.59.14.5015.
-oOoA proposal seeking finance concurrence for operating (+)
30% option clause on the above subject item, received from
Dy.CMM/S&T, which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase
Order has been placed on M/s.Atlantis Enterprises/Mumbai at
an all inclusive rate of Rs.10,542 per number and at a total value of
Rs.76,21,866 with the acceptance of CMM (L/F-N/15).
Now, it is proposed to exercise (+)30% quantity option clause
on the above firm as the demand is available for the subject item.
The proposal has been examined and the following are the
observations:
1. The proposal is being initiated based on the higher rates received
in the subsequent tender. It is stated that a new tender was opened
on 09.01.2015 for the subject item. The All inclusive rate L1 quoted
in the new tender is Rs.13,230 each (AIR). As the rates of instant
PO is Rs. 10,542 per No, lower than the subsequent tender and
financially beneficial to Railways, Since the DP is expiring and the
finalization of new tender will take time, as such Dy.CMM/S&T
proposed to operate (+)30% option clause and the same was
approved by CMM(L/F/N-25)
2. It is certified by the stores department that the performance of the
firm is
satisfactory. The firm has supplied the entire ordered
quantity of 723 Nos on 22.12.2014.(supplied 100%)
3. The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6
7

Original Value of the PO.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)

Rs.76,21,866.
723Nos
217 Nos
Nil
217 Nos
Rs.22,87,614
Rs.99,09,480

8
9

30% option clause


Competency of Sanction required
Delivery period

CMM
29.01.2015

NOTE/2
4. Necessary non stock indent is available (L/F-168) in the case file to
cover the proposed option quantity.
5. With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As
such, the proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage and as Delivery period of the
subject item is expiring on 29.01.2015, if approved we may concur the
proposal to exercise (+)30% option clause on M/s. Atlantis
Enterprises/Mumbai for a quantity of 217 Nos against Po.No.20070
of 22.09.2014, duly deducting the proposed 30% option clause
operated quantity in the subsequent tender.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt. 28.01.2015
Dy.CMM/S&T
Sub : Procurement of 80 column Dot Matrix printers for printing UTS
tickets- Exercising of (+) 30% Option Clause on M/s Atlantis
Enterprises, P.O.No:20070 dt:22.09.2014.
Ref :Dy.CMM/S&Ts Note No:24,25of Case file No.PS.59.14.5015.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
The file has been received for concurrence today i.e on 28.01.2015,
even though subsequent tender was opened on 09.01.2015 wherein
higher rates were received. The firm has completed the supplies in full on
22.12.2014. File was approved by CMM for processing 30% option clause
on 23.01.2015 and there is considerable delay for sending the file to
finance though the DP is available upto 29.01.2015 only. This scenario
has infact happened time and again and brought to the notice of the

Stores Department. As already suggested by finance through FA&CAO


that there should be a full proof system in exercising +/-30% option
clause by default and it was suggested to programme accordingly so as
to avail financial benefit by the Railways. It is once again reiterated that
necessary action may please be taken to process the files well in time for
financial gain by Railways.
It is observed that the rates received in subsequent tender (ie.,
opened on 09.01.2015) for the above subject item is on higher side. The
rate quoted by the lowest tenderer is Rs.13,230 per No, whereas the
instant Purchase Order rate is Rs.10,542 per No from the same firm. In
view of the financial advantage and as the delivery period is expiring on
29.01.2015, finance concurrence is hereby signified for exercising (+)
30% Option Clause as proposed on M/s.Atlantis Enterprises /Mumbai
for a quantity of 217Nos against Po.NO.20070 dt:22.09.2014 with original
terms and conditions with in Delivery Period and MPO released forthwith
duly reducing the 30% option quantity in the subsequent tender. The total
value after exercising +30% option clause is Rs. 99,09,480.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.

Encl : The concerned file.


( A.
K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

In continuation to notings at pre-page and a letter addressed to


Dy.CMM/S&T (vide F-8/C) may please be perused. The file has been resubmitted
by COS office with the observation of Dy.CMM/E stating that there was funds
shortage and consignee has directly communicated to the firms for not to supply
the material till the funds are available. In this situation imposition of full LD to
the firm are not in order which leads to legal complications. Further, all the
requisite evidence including CSTE certification for postponement of supply is at
N/4 & F-124 to 129 of link file and COS office has proposed for extension/waival
of DP without LD as endorsed at F/N-4 & N/8 respectively.
It is evident from the above facts that there is interference by the
consignee in corresponding with the firms directly without routing through COS.
COS has taken a serious view and directed that any modifications has to be
invariably done through the competent authority only which is placed at F.122
of link file.
The case was dealt originally at AGM level, but changed subsequently on
account of operation of (+)30% option clause which falls under the powers of
General Manager due to increase in total value of the Purchase orders(exceeded
above Rs.25Cr). As such the proposal requires the concurrence of FA&CAO.
In view of the above orders are solicited.
Sr.AFA/SF
Dy.CAO/S&W

FA&CAO/S&W

NOTE/1
Sub :- Procurement of underground Railway Jelly 6 Quadd cable for signaling
and telecom installation etc., Exercising of (-)30% option clause on M/s.
Gee Cab Inds Ltd/Alwar, P.O.No:62507 dt:05.05.14.
Ref :- Dy.CMM/Elecs Note No. 106 of Case file No:PS.56.12.5248.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause on
the above subject item, received from Dy.CMM/Elec, is placed at Folio-1/C which
may kindly be perused.
Three Purchase Orders have been placed for procurement of the above
subject item on(i)M/s.Gee Cab Inds Ltd/Alwar at an all inclusive rate of
Rs.2,35,893.57 per Km for SC and Rs.2,38,893.57 per Km for BZA for a quantity of
113.267 Kms at a total value of Rs.22,47,54,238.15 with the acceptance of GM (L/FN/67).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
62507 Dt:05.05.14 for a quantity of 33.98Kms.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
21.10.2014, from part II lowest technically suitable offer(AIR) is
Rs.2,39,257.75 per Km (L/F-1083), whereas the instant PO updated rate
duly taking the PVC element is Rs.2,59,759.80 per Km (L/F-1051).

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate i.e Basic rate of Rs.1,60,942.15per km to BZA
consignee(L/F.1054) with PVC base month as Aug2014, but the firm
refused to accept the offer. As such, it is proposed to cancel 33.98Kms duly
exercising (-)30% option clause on the firm.

(iii)

As the original tender was finalized with SAG tender committee and
accepted by GM, the above proposal requires the concurrence of FA&CAO
for exercising (-)30% option clause.

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/1
Sub :- Procurement of Non Asbestos L type Composite Brake Blocks
Exercising of (-)30% option clause on M/s. Industrial laminates I Pvt
Ltd/Mumbai, P.O.No:92059 Dt:12.09.14.
Ref :- Dy.CMM/Dsls Note No.28-30 of Case file No:Dsl.11.13.3690.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause on
the above subject item, received from Dy.CMM/G, is placed at Folio-1/C which may
kindly be perused.
A Purchase Order has been placed for procurement of the above subject item
on M/s.Industrial Laminates India Pvt Ltd/Mumbai(L/F-15) for a quantity of
4641Nos at a total value with other PO Rs.85,24,158 with the acceptance of CMM/M
(L/F-N/16).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
92059 Dt: 12.09.14 for a quantity of 1392 Nos.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
30.09.2014, from lowest technically suitable offer is(AIR) Rs.521per No
(L/F-208), whereas the instant PO rate is Rs.543per No(L/F-N-15).

(ii)

Further, as per special condition of contract firms offer is accepted pending


joint inspection report from RDSO. In case of adverse joint inspection report
from RDSO (-)30% option clause will be exercised. Since the report issued

by Joint inspection committee is negative executive has processed for


(-)30% option clause.
(iii)

As the original tender was finalized with JAG tender committee and
accepted by CMM, the above proposal requires the concurrence of
Sr.AFA/SF for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(Folio-N-29).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
05.02.2015

Dt.

Dy.CMM/
Sub :- Procurement of Non Asbestos L type Composite Brake Blocks
Exercising of (-)30% option clause on M/s. Industrial laminates I Pvt
Ltd/Mumbai, P.O.No:92059 Dt:12.09.14.
Ref :- Dy.CMM/Dsls Note No.28-30 of Case file No:Dsl.11.13.3690.
-oOoThe proposal received in connection with exercising of (-) 30% Option Clause
on the above subject item Purchase Order has been examined.
As the firm has not accepted for the lower rate received in subsequently
opened tender on 30.09.2014 for the subject item and in view of the adverse joint

inspection report, finance concurrence is hereby signified for exercising (-) 30%
Option Clause on M/s. Industrial Laminates India Pvt ltd/Mumbai against PO
No:92059dt:12.09.14 for a quantity of 1392 Nos.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

In continuation to the section note at pre-page, Dy.CMM/c&w has


resubmitted the proposal (Flag-A) in response to this office observations
placed at Flag - B, which may kindly be perused.
Earlier this office has concurred the proposal against M/s. Prag
Industries India Pvt ltd only(F/3/C) and as against the other three firms
executive has been advised to process the case after satisfactory
performance.
In response executive has resubmitted the proposal duly submitting the
performance of the firms.
The proposal has been examined and the following are the observations:
1. As already mentioned at pre page that a new tender was opened on
05.11.14 in which the L1 Part I tenderer has quoted AIR Rs.1048.82 per No.
The instant POs rate is AIR Rs.972 per No, similarly, the rates quoted by L1

Part II firm is AIR- Rs.967.42, whereas the Instant PO rate is AIR- Rs.920.23
per No. The new tender has been dropped as the rates received are on
higher side and duly recommending to exercise (+)30% option clause in
the instant Purchase Order(L/F-454), as the quantity to be procured is
35,289 Nos the excess Qty of 27,627 Nos available and 30% option clause
at lower rate for 21,609Nos put together works out to 48,867 Nos
representing 13 months requirements that will be very much sufficient for
next CP. Hence it is proposed not to procure any quantity against the
present tender and recommend to discharge the tender and drop the
procurement action. As such, Stores department is proposing to exercise
(+)30% option clause on the instant Purchase Orders. As it is financially
advantageous to Railways in exercising (+)30% quantity option clause for
a quantity of 21,609 Nos on the above firms.
2. It is stated that the performance of the firm is satisfactory. However, it is
observed that M/s.Howrah Forgings Ltd/Kolkata has supplied the full
quantity of 3141 Nos and as against M/s. MGM Rubber Co/Kolkata &
M/s.Basant Rubber factory Ltd/Mumbai performance is poor, hence option
clause now exercised on M/s. Howrah Forgings Ltd/Kolkata only.
3. The Delivery Period of the subject PO is available upto 31.03.2015.
4. Necessary Indent is available to cover the proposed option clause quantity.

The financial implications of the proposed option clause are as follows:


1

Original Value of the PO.

2
3
4

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6

Rs.6,90,83,864
.66
72,033 Nos
21,609 Nos
6,483Nos
942 Nos
Rs.8,66,875.5

7
8

Total Value of the PO after


exercising (+) 30% option clause
Competency of Sanction required

Rs.7,62,52,216
.16
COS

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&CAO/S&W.
In view of the financial advantage and as per the recommendations of the
subsequent tender committee option clause is exercised on M/s. Howrah Forgings
Ltd/Kolkata for a quantity of 942 Nos against Po.No.92422 dt:27.10.14. and as
against other firms after satisfactory performance option clause will be exercised.
Submitted for kind perusal and orders please.
SO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

NOTE/1
Sub : Exercising of (-)30% option clause on P.O.No.92429 Dt:28.10.14 & 92428
dt:28.10.14.
(Procurement of Silent Block for anchor link of BG coaches.)
Ref : Dy.CMM/C&Ws Note No:20 of Case file No. PC.30.13.1301.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause
on the above subject item, received from Dy.CMM/C&W, which is placed at Flag A
may kindly be perused.
For procurement of the above subject item two Purchase Orders have been
placed on M/s.B.D.Bansal Steel Industries/Mumbai and on M/s.Associated
Engineering Stores/Kolkata (AIR- Rs.580.99 per No) with the acceptance of
CMM/M for a total value of Rs.1,19,00 418.17 (L/F-N/12).
Now, Stores branch is proposing to exercise (-)30% quantity option clause
on the above firm as the rates received in subsequent tender are on lower side.
The proposal has been examined and the following are the observations:
1. Stores department stated that a new tender was floated for procurement of
the subject item and the tender was opened on 30.12.2014. It is observed
that the L1 tenderer has quoted AIR Rs.485.19 per No, which is lower than
the subject PO rate. As such, Stores department vide their letter placed at L/F320,321advised the firms to accept the lower rate or (-)30% option clause will
be operated. As the firm did not accepted the lower rate(L/F.322,323), Stores
department is proposing to exercise (-)30% option clause on the above firms.
As such, the originally ordered quantity will be reduced for a quantity of
3687Nos on M/s. B.D.Bansal Steel Industries/Mumbai and for a quantity of
2458Nos on M/s. Associated Engineering Stores/Kolkata.
2. The financial implications of the proposed option clause are as follows:
1

Original Value of the PO.

2
3
4

Original Qty in the POs.


(-) 30% option quantity
Qty already utilized under option
clause
Now proposed reduced qty under

Rs.1,19,00,418.1
7.
20,483 Nos
6,145 Nos
Nil
6,145 Nos

option clause
6
Revised quantity in the PO
14,338 Nos
7
Value of the proposed option Qty
Rs.35,70,183.55
8
Total Value of the PO after exercising Rs.83,30,234.62
(-) 30% option clause
9
Competency of Sanction required
CMM
10 Delivery period available upto
10.06.2015

NOTE/2
3. The proposal to exercise (-)30% option clause has the approval of CMM (FolioN-29).
With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM/M. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
In view of the lower rates received in subsequent tender, if approved we
may concur the proposal to exercise (-)30% option clause against Po.No.92428
dt:28.10.14 on M/s. Associated Engineering Storees/Kolkata for a quantity of
2458Nos and against PO.NO.92429 dt:28.10.14 on M/s.B.D.Bansal Steel
Industries/Mumbai for a quantity of 3687 Nos.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
11.02.2015

Dt.

Dy.CMM/C&W
Sub : Supply of Modified Elastomeric Pads.. under (+) 30% Option
Clause, against M/s.Howrah Forgings Ltd/Kolkata.
Ref : Dy.CMM/C&Ws Note No:53of Case file No.PW.38.13.1145.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 05.11.2014 for the above subject item are on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage to Railways and as per SAG TC recommendations , finance
concurrence is hereby signified for exercising (+) 30% Option Clause on (i)
M/s.Howrah Forgings Ltd/Kolkata for a quantity of 942 Nos against PO.NO.
92422 dt:27.10.14 only with original terms and conditions with in Delivery
Period. Further, as regards to M/s. MGM rubber co,M/s. Basant Rubber Factory
Ltd, it is advised that after satisfactory performance option clause may be
processed.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3. Fixing reasonable delivery schedule for the enhanced quantities.


4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Spindle for Hand Brake.- Exercising of (+)
30% Option Clause.P.O.No:92298 Dt:14.10.14 against M/s. Shiv
Shakti Industries/Howrah.
Ref :Dy.CMM/C&Ws Note No:26,27,28 of Case file No.Pw.38.13.1528.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase Order has
been placed on M/s. Shiv Shakti Industries/Howrah at an all inclusive rate of
Rs.820.40 per number and at a total value of Rs.25,85,900.80 with the
acceptance of Dy.CMM/C&W (L/F-N/20).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
20.11.2014 for the subject item. The All inclusive rate accepted in the new
tender is Rs.827.50each (AIR). As the rates of instant PO is lower than the
subsequent tender and financially beneficial to Railways, JAG tender
committee has recommended to invoke (+)30% option clause (L/F-612) on the
instant PO for a total quantity of 946 Nos on RYPS.

2. It is certified by the stores department that the performance of the firm is


satisfactory. The firm has supplied the entire order quantity of 2071 Nos out
of the total ordered quantity of 3152 Nos and DP is ahead for the balance
quantity.(supplied 66%).
3. The delivery period is available upto 20.02.2014.
4. The financial implications of the proposed option clause are as follows:
1

Original Value of the PO.

2
3
4

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8

Total Value of the PO after


exercising (+) 30% option clause
Competency of Sanction required

Rs.25,85,900.
80
3152 Nos
946 Nos
Nil
946 Nos
Rs.7,76,098.4
/Rs.33,61,999.
2
CMM

5. Necessary ANE is available (L/F-600) in the case file to cover the proposed
option quantity.
6. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., Dy.CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF.
7. In view of the financial advantage involved and as recommend in the
subsequent TC, if approved we may concur the proposal on. M/s.Shiv Shakti
Industries/Howrah for a quantity of 946Nos against PO.No.92298
dt:14.10.14.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

No.ASF/Q 01
12.02.2015
Dy.CMM/C&W

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Sub : Procurement of Spindle for Hand Brake.- Exercising of (+)


30% Option Clause.P.O.No:92298 Dt:14.10.14 against M/s. Shiv
Shakti Industries/Howrah.
Ref :Dy.CMM/C&Ws Note No:26,27,28 of Case file No.Pw.38.13.1528.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
20.11.2014) for the above subject item are on higher side. The rate accepted from
lowest offer is Rs.827.50, whereas the instant Purchase Order rate is Rs.820.4. In
view of the financial advantage and as recommended by JAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Shiv Shakti Industries/Howrah for a quantity of 946Nos against
Po.No.92298 dt:14.10.14 with original terms and conditions with in Delivery Period.
The total value after exercising +30% option clause is Rs. 33,61,999.2(Which exceed the
powers of original accepting authority).

As such the concurrence is signified subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
In continuation to the section note at pre-page, Dy.CMM/G has
resubmitted the proposal (Flag-A) in response to this office observations
placed at Flag - B, which may kindly be perused.

Earlier this office has concurred the proposal against M/s.Wonder


Laminates Pvt Ltd/WB only(F/6/C) and as against the other firms (M/s.R.B.Poly
Boards & M/s. Deco Mica Ltd/Ahmedabad) executive has been advised to
process the case after satisfactory performance.
In response, executive has resubmitted the proposal duly submitting the
performance of the firm M/s. R.B.Poly Boards.
The proposal has been examined and the following are the observations:
(i)
As already mentioned at pre page that the proposal is initiated based
on the higher rates received in the subsequent tender. It is stated that a
new tender was opened on 07.03.14 for the subject item(procurement for
the CP period 01.02.2015 to 31.01.2016). The All inclusive rate accepted in
the new tender is Rs. 1224.63 per No. As the rates of the instant PO is
Rs.1098per No, lower than the subsequent tender and financially beneficial
to Railways and SAG Tender committee has recommended for exercising
(+)30% option clause and the same was accepted by AGM(L/F-N-447) for a
total quantity of 2052 against Pl.No.75403651 and for a quantity of
2113Nos against Pl.No.75403419.As such, Stores department is proposing
to exercise (+)30% option clause on M/s. R.B.Poly Boards against
Pl.No.75403419 for a quantity of 898Nos and against Pl.No.75403651 for a
quantity of 2052 Nos, as it is financially advantageous to Railways in
exercising (+)30% quantity option clause.
(ii)

A copy ANE (L/F-F.417) is available in the case file to cover the proposed option
quantity.
(iii)
It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from the PO that the firm has supplied total
ordered quantity against Pl.no.75403419 and against Pl.No.75403651 firm has
supplied 57% quantity i.e supplied 5496 out of the total ordered quantity of
9590Nos and DP is ahead for the balance quantity i.e upto 31.03.2015.
(iv)
The financial implications of the proposed option clause are as follows:
Original Value of the PO.
Rs. 2,97,73,494
(+)30%option clause quantity, where DP
2052Nos
available upto 30.04.14 Pl.No.75403651
(+)30% option clause quantity, where DP
2113 Nos
available upto 30.08.14 Pl.NO.75403419
Qty already utilized under option clause
Pl.No.75403419-898Nos
Qty Now proposed
Pl.No.75403419 -898Nos
Pl.No.75403651-2052Nos
Value of the proposed option Qty
Rs.32,39,100
Total Value of the PO after exercising (+) 30%
Rs.3,30,12,594
option clause

Competency of Sanction required


Delivery period available upto

COS
31-03-2015

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&.CAO/S&W.
In view of the above, if approved we may concur the proposal for exercising
(+)30% option clause on M/s.R.B.Poly Boards against Pl.no75403419 and
Pl.NO.75403651 for a quantity of 898and 2052Nos respectively.
Submitted for kind perusal and orders please.
SSO(A)/SF

Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
18.02.2015

Dt.

Dy.CMM/C&W
Sub : Exercising of (-)30% option clause on P.O.No.92429 Dt:28.10.14 & 92428
dt:28.10.14. (Procurement of Silent Block for anchor link of BG coaches.)
Ref : Dy.CMM/C&Ws Note No:20 of Case file No. PC.30.13.1301.
-oOoThe proposal received in connection with exercising of (-) 30% Option Clause
on the above subject item Purchase Order has been examined.
As the firm has not accepted for the lower rate received in subsequently
opened tender on 30.12.2014 for the subject item, finance concurrence is hereby
signified for exercising (-) 30% Option Clause on M/s.Associated Engineering
Stores/Kolkata against PO No:92428 dt:28.10.14 for a quantity of 2458Nos and on
M/s.B.D.Bansal Steel Industries/Mumbai against Po.No.92429 dt:28.10.14 for a
quantity of 3687Nos.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM/M.
2. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Metalised Carbon Strips - Exercising of (+) 30%
Option Clause on M/s.Mersen India Pvt Ltd/SBC,P.O.No:90914
dt:31.01.14.
Ref :Dy.CMM/Elecs Note No:17,18of Case file No.PA.25.13.4496.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase Order has
been placed on M/s.Mersen India Pvt Ltd/SBC at an all inclusive rate of
Rs.4083.70 per number and at a total value of Rs.58,39,691 with the
acceptance of CMM/E (L/F-N/14).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received in the
subsequent tender. It is stated that a new tender was opened on 30.01.2015
for the subject item. The All inclusive rate quoted by the lowest offer in the

new tender is Rs.4160.75per No(AIR), the new tender is not finalized and DP
of the instant PO is expiring on 26.02.15 and as the rates of instant PO is
lower than the subsequent tender and financially beneficial to Railways, As
such CMM/E has proposed to proposal for operating +30% option clause in the
instant PO so as to avail financial benefit and decrease the proposed option
clause quantity in the subsequent tender.
2. It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed that firm has supplied 519Nos out of
the total ordered quantity of 1430Nos(supplied 36%)
3. The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6

Original Value of the PO.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising


(+) 30% option clause
Competency of Sanction required
Delivery period

8
9

Rs.58,39,691.
1430 Nos
429 Nos
Nil
429 Nos
Rs.17,51,907.
3
Rs.75,91,598.
3
CMM
26.02.2015

NOTE/2
4. Necessary ANE is available to cover the proposed option quantity.
5. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie.,CMM. As such, the proposal requires
the concurrence of Sr.AFA/SF.
In view of the financial advantage, if approved we may concur the
proposal for a quantity of 429Nos on M/s.Mersen India Pvt Ltd/Bangalore
against PO.NO.90914 dt:31.01.14 duly reducing the option clause quantity of
429Nos in the subsequent tender.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

SECUNDERABAD
No.ASF/Q 01
24.02.2015

Dt.

Dy.CMM/Elec
Sub : Procurement of Metalised Carbon Strips - Exercising of (+) 30%
Option Clause on M/s.Mersen India Pvt Ltd/SBC,P.O.No:90914
dt:31.01.14.
Ref :Dy.CMM/Elecs Note No:17,18of Case file No.PA.25.13.4496.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
30.01.2015) for the above subject item is on higher side. The rate received from
Lowest tenderer is Rs.4160.75 per No(AIR), whereas the instant Purchase Order rate
is Rs.4083.70 per No(AIR). In view of the financial advantage, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on M/s. Mersen India Pvt
Ltd/SBC for a quantity of 429Nos against Po.No.90914 dt:31.01.14 duly reducing the
30% option clause quantity in the next tender with original terms and conditions
with in Delivery Period. The total value of Po after exercising (+) 30% option clause
is Rs.75,91,598.3.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2.. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
(A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/85
Sub :- Procurement of Motorised Boom Lock for Elecrically operated lifting
Barrier Exercising 30% quantity at lower rate on M/s. Globe Scott
Motors Pvt Ltd/Gujarat against P.O.No:70109 dt:03.09.14.
Ref :- Dy.CMM/S&Ts Note No. 22,23 of Case file No:PS.56.14.5011.
-oOoA proposal seeking finance concurrence for operating 30% quantity at lower
rate on the above subject item, received from Dy.CMM/S&T, is placed at Folio-1/C
which may kindly be perused.
One Purchase Order has been placed for procurement of the above subject
item on M/s.Globe Scott Motors Pvt Ltd/Gujarat for a quantity of 240Nos at a
total value of Rs.48,64,228.80 with the acceptance of CMM/E (L/F-N/14).
Now, it is proposed to exercise 30% quantity at lower rate on the subject P.O
No. 70109 dt:03.09.14 for a quantity of 72Nos(-30% option clause quantity).
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
07.10.2014, from lowest technically suitable offer is Rs.17994.25per
No(AIR), whereas the instant PO rate is Rs.20267.62 per No(AIR).

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.17994.25 per No(Air), but the firm has agreed to accept for
lower rate for 72 Nos subject to extending the delivery period upto
15.03.2015(F/97,99). Accordingly, calculation was made duly comparing
the prices with the present tender rate and by levy of LD on the previous
tender rate.The present PO AIR rate Rs.20,267.62 by levying full LD upto
march2015i.e 10%
would be 20267.62-2026.76=18240.858, but on
imposing lower rate it is Rs. 17994.25 per no only. Hence by extending the
DP upto 15.03.15 and supply the 1 st lot of 72 Nos at 17994.25 is financially
advantage to Railways.

(iii)

As the original tender was finalized with Sr scale tender committee and
accepted by CMM, the above proposal requires the concurrence of
Sr.AFA/SF for exercising 30% option clause quantity at lower rate duly
extending the DP upto 15.03.15..

(iv)

The proposal to exercise 30% option clause at lower rate has the approval
of CMM (Folio-N-22).

In view of the above, if approved we may concur the proposal to exercise


30% option clause quantity at lower rate i.e Rs. 17994.25 per no for 72 Nos.
Submitted for kind perusal and orders please.
SO(A)/(SF)
Sr.AFA/(SF)

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
26.02.2015

(S&W),

Dt.

Dy.CMM/G
Sub : Procurement of Decorative Thermosetting synthetic resin bonded
laminated sheet..- Exercising of (+) 30% Option clause.P.O.Nos:91818
dt 18.07.13 against Pl.No.75403419 and PO.NO.29314,57029
dt:19.07.13
against Pl.No.75403651 on M/s.R.B.Poly Boards/SC.
Ref : Your Note No:76 of Case file No.Po.75.13.1230.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
07.03.14) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.1224.63 per number, whereas the instant Purchase Order rate is

Rs.1098 per number. In view of the financial advantage and as recommended by


SAG tender committee, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s.R.B.PolyBoards/SC for a quantity of 898Nos against
Pl.no.75403419,
Po.No.91818
dt:18.07.13
&
2052Nos
against
Pl.No.75403651, Po.NO.29314,57029 dt:19.07.13 with original terms and
conditions with in Delivery Period. The Total value of the PO after availing 30%
option clause is Rs.3,30,12,594.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3..

Fixing reasonable delivery schedule for the enhanced quantity.

4.

Ensuring availability of funds during the current financial year.

5..

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

(S&W),

No.ASF/Q 01
25.02.2015
Dy.CMM/S&T
Sub :- Procurement of Motorised Boom Lock for Elecrically operated lifting
Barrier Exercising 30% quantity at lower rate on M/s. Globe Scott
Motors Pvt Ltd/Gujarat against P.O.No:70109 dt:03.09.14.
Ref :- Dy.CMM/S&Ts Note No. 22,23 of Case file No:PS.56.14.5011.
****

Dt.

The proposal received in connection with exercising of 30% quantity at lower


rate on the above subject item Purchase Order has been examined.
As the firm has accepted for the lower rate received in subsequently opened
tender on 07.10.2014 for the subject item, finance concurrence is hereby signified
for exercising 30% quantity at lower rate i.e @Rs.17994.25 per No(AIR) duly
extending the DP upto 15.03.15 on M/s.Globe Scott Motors Pvt Ltd/Gujarat
against PO No:70109 dt:03.09.14 for a quantity of 72Nos.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
25.02.2015

Dt.

Sub : Procurement of Air Brake Hose..- Exercising of (+) 30% Option clause-

Against M/s. A.B.Elasto Products Pvt Ltd & M/s. General rubber co Pvt
Ltd-Reg
Ref : Your Note No:113 of Case file No.PW.38.13.1543.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders has been examined and following are
the observations.
The delivery period of M/s. A.B.Elasto Products Pvt Ltd has expired on
31.10.14 and as already advised repeatedly by this office that option clause has to
be exercised within the original/extended delivery period and should be valid on
date. Instead of following the rules, insisting finance to concur the proposal after the
expiry of the DP is not understood. Purchase officer to please note that all proposal
should be sent well in advance with all the required information for obtaining
finance concurrence. So that there is no delay whatsoever to the advantage of
Railways.
Further, since there is financial advantage in invoking the option clause
against the said purchase order, file may be resubmitted duly refixing the delivery
period to concur the proposal.
As against M/s. General Rubber Co Pvt Ltd/NDLS, the firm has not supplied
the total ordered quantity till date as such option clause cannot be exercised. Hence
it is advised to process the case after satisfactory performance.
It is once again reiterated
that without validity of proposal need not be sent to finance. Please note and
comply.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : supply and installation of Heavy duty passenger escalator

- Exercising of (+) 30% Option Clause on M/s. Johnson Lifts Pvt


Ltd/Hyderabad -Reg
Ref :CMM/Elecs Note No:144 of Case file No. PE.47.13.5046
dt:25.02.15.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at Folio- 1/C may kindly be perused.
For procurement of the above subject item Nine Purchase Orders have
been placed on M/s.Johnson Lifts Pvt Ltd/Hyderabad at an all inclusive
rate of Rs.57,74,000 per number and at a total value of Rs. 10,39,32,000 with
the acceptance of COS (L/F-N/52,72) for 18+3 Nos.
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 24.02.2015


for the subject item. The All inclusive rate quoted by L1 is
Rs.71,90,000(excluding AMC charges ,as the rates of instant PO is lower than
the subsequent tender and as the DP is expiring on 26.02.2014, by exercising
Option clause is financially advantageous to railways. Hence, executive has
processed the file for exercising +30% option clause.
2. It is certified by the stores department that the performance of the firm is
satisfactory. However, the firm has supplied the entire ordered quantity but
installation for some units are under process due to administrative reasons
3. The financial implications of the proposed option clause are as follows:
1

Original Value of the PO.

2
3
4
5
6

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+)


30% option clause
Competency of Sanction required

Rs.10,39,32,0
00
18 Nos+3
6 Nos
Nil
6 Nos
Rs.26,06,454
7
Rs.15.58 Cr
AGM

4. Necessary NS indent are available to cover the proposed option quantity.

5. With the exercise of above option clause, the revised value will exceed the
powers of original accepting authority ie., AGM. As such, the proposal
requires the concurrence of FA&.CAO.
6. In view of the above, if approved we may concur the proposal as it is
financially advantageous to railways and DP of the subject PO is expiring on
28.02.2015. against M/s. Johnson Lifts Pvt Ltd/Hyd for a quantity of 6 Nos
and as against 1 Nos executive will be advised to process as per clause (viii)
of terms and condition of the subject Purchase orders to avail financial
benefit forth with.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,SC
No.ASF/Q 01
Dt. 26.02.2015
CMM/Elec
Sub : supply and installation of Heavy duty passenger escalator
- Exercising of (+) 30% Option Clause on M/s. Johnson Lifts Pvt
Ltd/Hyderabad -Reg
Ref :CMM/Elecs Note No:144 of Case file No. PE.47.13.5046
dt:25.02.15.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
24.02.2015) for the above subject item is on higher side. The rate received from
Lowest tenderer is Rs.71,90,000 per No(excluding AMC charges)(AIR), whereas the
instant Purchase Order rate is Rs.57,74,000 per No(AIR)(excluding AMC charges). In
view of the financial advantage, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Johnson Lifts Pvt Ltd/Hyderabad for a
quantity of 6Nos, duly reducing the 30% option clause quantity in the next tender
with original terms and conditions with in Delivery Period. Further, 1 No also has to
be operated as per clause no. viii of PO conditions. The total value of Po after
exercising (+) 30% option clause is Rs.15.58 Cr.
However, it is noticed that the specification(RDSO), mentioned in the present
PO and that of new tender varies, this aspect may be analyzed and action taken
accordingly.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., AGM.
2.

Ensuring that no lower rates have been received in terms of para 3.3

of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary indents may be placed on the file to vet the MPOs. Since, the
same has not been made available.
Encl : The concerned file.
(A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procuremnt of Paint Ready Mix Red Oxide .. under (+) 30% Option
Clause.
Ref : CMM/Elecs Note No:244 to 46 of Case file No. PO.77.13.1145.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from CMM/Elec, which is placed at Folio-1/C
may kindly be perused.
For procurement of the above subject item three Purchase Order have been
placed on three firms i.e.,(i)M/s.Rahul Paints/Lucknow Pt-I(AIR- Rs.87.21 per
Ltr) (ii)M/s.Deb Paints Pvt ltd/Kolkata Part-I (AIR Rs.87.21 per Ltr)& (iii)
M/s.Vibgyor Paints & chemicals pondichery Part-II (AIR- Rs.83.24 per Lr)
with the acceptance of CMM/G for a total value of Rs.1,85,49,377.20(L/F-N/17).
Now, Stores branch is proposing to exercise (+)30% quantity option clause on
two firms(M/s. Rahul Paints/Lucknow & M/s. Deb paints Pvt Ltd/Kolkata only). As
against M/s. Vibgyor Paints and chemicals Pondichery, Delivery period expired
before opening of the new tender, hence option clause not exercised.
The proposal has been examined and the following are the observations:

1. The proposal is being initiated based on the recommendations of the


subsequent tender committee. It is stated that a new tender was opened on
10.10.2014 for the subject item. The All inclusive rate accepted in the new
tender Part I firm is Rs.87.73 per Lr(AIR). As the rates of instant PO is lower
than the subsequent tender and financially beneficial to Railways, JAG tender
committee has recommended to invoke (+)30% option clause (L/F-325) on the
instant PO for a total quantity of 54,612 Ltrs.
2. It is certified by the stores department that the performance of the firms are
satisfactory. The firm M/s.Rahul Paints has supplied 60,000Ltrs out of the
total ordered quantity of 1,09,220Ltrs(i.e 55% supplied) and as against M/s.
Deb Paints the firm has supplied 45,080ltrs out of the total ordered quantity of
72,820Ltrs i.e 62% supplied) and DP is ahead for the remaining supply
portion.
3. The financial implications of the proposed option clause are as follows:
1

Original Value of the three POs.

2
3
4
5
6
7

Original Qty in the 2 POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.1,85,49,377.
20
182040 Ltrs
54,612 Ltrs
Nil
54,612 Ltrs
Rs.47,62,712.52
Rs.2,33,12,089.
72
COS
21.03.15/11.0
4.15

NOTE/2
4. Necessary indent is available in the case file to cover the above option
quantity.
5. The proposal has the Administrative approval of CMM/E (Folio-N-46 fo
Link file for exercising option clause on the above firms.
6. With the exercise of above option clause, the revised value will exceed the
powers of orginal accepting authority i.e CMM. As such, the proposal requires
sanction of COS with the councurrence of FA&CAO/S&W.
In view of the financial advantage involved, if approved we may concur the
proposal on M/s. Rahul Paints for a quantity of 32,766Ltrs against Po.NO.90495
dt:11.03.14 and on M/s. Deb Paints for a quantity of 21,846Ltrs against
Po.NO.90496 dt:11.03.14.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub :- Procurement of underground Railway jelly filled 6 quadd cable for
signaling and telecom installation.., Exercising of (-)30% option
clause on M/s. Gee Cab Inds Ltd/Alwar against Po.No.
P.O.No:90.12.1156.1.90953.
Ref :- Dy.CMM/Gs Note No. 32 to 34 of Case file No:PB.90.12.1156.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause on
the above subject item, received from Dy.CMM/G, is placed at Folio-1/C which may
kindly be perused.
Three Purchase Order has been placed for procurement of the above subject
item on M/s.Gee Cab Industries Ltd(L/F/N-63) for a quantity of 113.267Kms at a
total value of Rs.22,47,54,238.15 with the acceptance of GM(L/F-N/67).
Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
62507 Dt: 05.05.14 for a quantity of 32.2Kms.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above


subject P.O, as the rate received in the tender opened recently ie on
21.10.14, from lowest technically suitable offer Part II is Rs.2,39,257.75per
KM (L/F-1112), whereas the instant PO updated rate is Rs.2,59,759.80 per
km (L/F-1095). Further, SAG Tender committee has recommended to
exercise (-)30% option clause(L/F.1112) as the rates received in the
subsequent tender is lower than the instant PO.

(ii)

It is observed from the case file that the firm was advised to accept the
lower rate of Rs.2,39,257.75 per Km, but the firm refused to accept the
offer(L/F-1105). As such, it is proposed to cancel 32.2Kms duly exercising
(-)30% option clause on the firm. But the (-)30% works out to 33.98Km and
firm has to supply still a quantity of 37Km.

(iii)

As the original tender was finalized with SAG tender committee and
accepted by GM, the above proposal requires the concurrence of
FA&CAO/S&W for exercising (-)30% option clause.

(iv)

The proposal to exercise (-)30% option clause has the approval of CMM
(L/f.N-107).

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on the above firm for a quantity of 33.98km and not 32.2km
as proposed by CMM.
Submitted for kind perusal and orders please.
SSO(A)/(SF)

STORES

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
09.03.2015

Dt.

CMM/E
Sub : Procuremnt of Paint Ready Mix Red Oxide .. under (+) 30%
Option Clause.
Ref : CMM/Elecs Note No:44 to 46 of Case file No. PO.77.13.1145.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
10.10.2014) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.87.73 per Ltr, whereas the instant Purchase Order rate is Rs.87.21
per Ltr. In view of the financial advantage and as recommended by JAG tender
committee, finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.Rahul Paints/Lucknot Part I firm for a quantity of 32,766 Ltrs
against Po.No.90495 dt:11.03.14 & on M/s. Deb Paints Part I firm for a
quantity of 21,846 Ltrs against Po.NO.90496 dt:11.03.14 with original terms
and conditions with in Delivery Period. The Total value of the PO after availing 30%
option clause is Rs.2,33,12,089.72. With the exercising of +30% option clause the
revised value will exceed the powers of original accepting authority ie., CMM
The above concurrence is subject to the following:

1. Obtaining the Sanction of COS.


2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3..

Fixing reasonable delivery schedule for the enhanced quantity.

4.

Ensuring availability of funds during the current financial year.

5..

Getting the MPOs vetted by Stores Finance section.


This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Procurement of Jointless Grooved copper contact wire(107 Sq
mm) under (+) 30% Option Clause against P.O.No:29307
dt:18.12.14 on M/s. Om Sai Udyog Pvt Ltd/Kol.
Ref : Dy.CMM/Elecs Note No: 46 to 48 of Case file No.PE.46.13.5030.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at folio-1/C may kindly be perused.

For procurement of the above subject item one Purchase Order has been
placed on M/s.Om Sai Udyog Pvt Ltd/Kol (AIR- Rs.605374.95 per MT and
updated AIR rate is Rs. 5,48,120.56) with the acceptance of CMM/E for a
total value of Rs.39,65,205.92 (L/F-N/40) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1. It is stated that a new tender was opened on 09.01.2015 in which the L1
tenderer has quoted AIR of 5,99,806.79PMT whereas the instant PO
updated rate is Rs.5,48,120.56PMT, which is less in rate by Rs.51,686.23
per MT. The new tender has been finalized by the tender committee duly
recommending to exercise (+)30% option clause on the instant Purchase
Order (L/F-305)and drop the present tender. As such, Stores department is
proposing to exercise (+)30% option clause on the instant Purchase Order.
As it is financially advantageous to Railways in exercising (+)30%
quantity option clause for a quantity of 1.97MT on the above firm.
2. It is stated that the performance of the firm is satisfactory. The firm has
supplied the entire ordered quantity of 6.550MT(i.e Supplied 100%).
3. The Delivery Period of the subject PO is available upto 25.06.15
4. Necessary NS indent is available to cover the 30% option clause quantity.

5. The financial implications of the proposed option clause are as follows:


1

Original Value of the PO.

2
3
4

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8
9

Total Value of the POs after


exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.39,65,205.9
2
6.55Mts
1.97Mts
Nil
1.97Mts
Rs.11,92,588.6
5
Rs.51,57,794.5
7
CMM
25.06.15

In view of the financial advantage involved in the proposed option


clause and as per the subsequent TC recommendations, if approved we may
concur the proposal to exercise (+)30% quantity option clause for a total
quantity of 1.97Mts on M/s. OMSAI Udyog India Pvt Ltd/Kol with PVC upper
sealing may be pegged down to rates obtained in the tender opened
on 09.01.2015.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., CMM/E. As such, the
proposal requires the concurrence of Sr.AFA/SF.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
10.03.2015

Dt.

Dy.CMM/G
Sub : Procurement of Laminated Plastic sheet..- Exercising of (+) 30%
Option clause- Against M/s.R B Poly Boards Ltd-Reg
Ref : Your Note No:56 to 58 of Case file No.PO.75.14.1230.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders has been examined and following are
the observations.
The delivery period of M/s. R.B.Poly Boards against Po.No.91148 dt 28.05.14
has expired on 02.02.2015 and as option clause has to be exercised within the
original/extended delivery period and should be valid on date. Hence option clause
cannot be concurred.
Further, since there is financial advantage in invoking the option clause
against the said purchase order, file may be resubmitted duly refixing the delivery
period to concur the proposal.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 09.03.2015

Dy.CMM/C&W
Sub:- Procurement of Pin for bolster spring -reg- Exercising of
(+)30% option cause on M/s.Annapurna Engg Works/Howrah,
PO.No.90342 Dt:14.02.14.
Ref:- Dy.CMM/C&W Note no. 17,18 of case file No.PC.30.13.1190.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for


exercising (+)30% option clause, the performance of the firm should be
satisfactory. It is seen from the case file that M/s.Annapurna Engg
Works/Howrah has supplied 4449Nos out of the total ordered quantity of
16416Nos(i.e. supplied 27%only). As such performance of the firm is to be
improved upon to consider option clause.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
10.03.2015

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/Elec
Sub : Procurement of Jointless Grooved copper contact wire(107 Sq
mm) under (+) 30% Option Clause against P.O.No:29307
dt:18.12.14 on M/s. Om Sai Udyog Pvt Ltd/Kol.
Ref : Dy.CMM/Elecs Note No: 46 to 48 of Case file No.PE.46.13.5030.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
09.01.2015) for the above subject item is on higher side. The rate received from
Lowest tenderer is Rs.5,99,806.79 PMT(AIR), whereas the instant Purchase Order

updated rate is Rs.5,48,120.56PMT(AIR). In view of the financial advantage and as


per the subsequent TC recommendations, finance concurrence is hereby signified
for exercising (+) 30% Option Clause on M/s. Om Sai Udyog Pvt Ltd/Kol for a
quantity of 1.97MT against Po.No.29307 dt:18.12.14 with PVC upper sealing pegged
down to rates obtained in the tender opened on 09.01.2015 and with original terms and
conditions with in Delivery Period. The total value of the contract including 30% option clause
is RS.51,57,794.57.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.
2.. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.. Fixing reasonable delivery schedule for the enhanced quantity.
4.. Ensuring availability of funds during the current financial year.
5..Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
(A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Decorative Thermosetting synthetic resin bonded
laminated sheet - Exercising of (+) 30% quantity Option Clause.
Ref : Dy.CMM/Gs Note No:56 to 58 of Case file No.PO.75.14.1230.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Folio-1 may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on 1 firm viz., (i) M/s.R B Poly Boards Ltd/SC(as requested by M/s.
Sunder Synthetics)(AIR-Rs.1224.63each)with the acceptance of COS for a
total value of Rs.22675249.08 (L/F-N/28).
The proposal has been examined and the following are the observations:

1.

The proposal is being initiated based on the higher rates received on


subsequent tender. It is stated that a new tender was opened on 02.01.2015
for the subject item. The All inclusive rate accepted (RDSO PT.I) in the new
tender is Rs.1328.70 per No. As the rates of instant PO (RDSO Pt.I Rate is Rs.
1224.63 per No. is lower than the subsequent tender, by exercising Option
clause will be financially advantageous to railways. Further subsequent TC
member recommended to operate +30% option clause accordingly 30%
option clause quantity has been reduced and new tender finalized.

2.

A copy Non stock indents(L/F-F368,369 ) are available in the case file to cover the
proposed option quantity.

3.

It is certified by the stores department that the performance of the firm is


satisfactory. However, it is observed that firm has supplied 3201Nos out of 6399(total
ordered quantity) (i.e supplied 50%) and DP is ahead i.e 30.09.2015 for the remaining
supplies.

4. The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the PO.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.2,26,75,249.08

6399Nos
1920Nos
Nil
1920Nos
Rs.23,51,289.6
Rs.2,50,26,538.
68
COS
30.10.15

With
the
exercise of above option clause, the revised value will be with in the powers of
original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&.CAO/S&W.
In view of the financial advantage involved in the proposed option
clause and as per the subsequent TC recommendations, if approved we may
concur the proposal to exercise (+)30% quantity option clause for a total
quantity of 1920Nos on M/s.R.B.Poly Boards Ltd/SC against Po.NO.91148
dt:28.05.14 for Pl.no.75403651.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
11.03.2015

Dt.

CMM/Elec
Sub :- Procurement of underground Railway jelly filled 6 quadd cable for
signaling and telecom installation.., Exercising of (-)30% option
clause on M/s. Gee Cab Inds Ltd/Alwar against Po.No.62507
dt:05.05.14.
Ref :- Dy.CMM/S&Ts Note No. 107 to 108 of Case file No:PS.56.12.5248.
-oOoThe proposal received in connection with exercising of (-) 30% Option Clause
on the above subject item Purchase Order has been examined.
As the firm has not accepted for the lower rate received in subsequently
opened tender on 21.10.14 for the subject item, finance concurrence is hereby
signified

for

exercising

(-)

30%

Option

Clause

on

M/s.GEE

CAB

Inds

Ltd/Rajasthan against PO No:62507 dt:05.05.14 for a quantity of 33.98Km instead


of 32.2Km as proposed(i.e (-)30% of the ordered quantity works out to
113.267Km*30%=33.98Km)
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie.,GM.
2. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

In continuation to the above section notings at N-1 & 2, Dy.CMM/C&W has


submitted the proposal( L/F-N-116), in response to this office observations made
vide (F/5/C) which may kindly be perused.
It is stated by CMM/M that original Delivery Date expired on 31.10.2014 and a
consent letter for operating +30% option clause was issued to the firm on
29.10.2014 itself(F/665 of L/F) and as such it is binding on firm to supply and on
railway to issue formal MPO. Further, DP for the subject PO has been refixed
upto 04.05.15 for operating the (+)30% option clause and the same was approved
by COS(L/F.N-116).
The proposal has been examined and the following are the observations:
1. For procurement of the above subject item five Purchase Orders have been
placed on (i) M/s.A.B.Elastro Products Pvt Ltd/Kolkata(Part-II)(AIRRs.755.06each)(DP expired on 07.11.14) (ii) M/s.IMT Cables Pvt Ltd/New
Delhi(Part-II) (AIR- Rs. 755.06each)(DP expired on 20.08.14), (iii) M/s.Avadh
Rubber Haridwar(Part-I) (AIR- Rs.838.08 each) (iv)M/s.The General Rubber Co.
Pvt Ltd/New Delhi(Part I)(AIR- Rs.838.08 each)& (v).M/s. ASP sealing products
Ltd/New Delhi (Part-I) (AIR- Rs. 755.06 each)(DP expired on 05.09.14) with the
acceptance of COS for a total value of Rs.1,34,50,655.26 (L/F-N/55) with
(+)30% option clause.
2. It is stated that a new tender was opened on 25.02.14 & 26.09.14 in which the
lowest technically suitable Part-I firm quoted Rs.909.41 each (AIR) (L/F-640)
and lowest Part-II firm quoted Rs.837.64each, whereas the subject POs rates
are Rs.838.08 for Part I source and Rs.755.06 for Part II source. The tender
openend on 25.02.14(AIR_873.04) has been droped and advised to exercise
option clause (L/F./582). It is financially advantageous to Railways in exercising
quantity option clause on the above firm. Already this office has signified
concurrence for a quantity of 1851Nos on M/s. Avadh Rubber/Haridwar out of
the quantity(3702Nos) available under +30% option clause. Now executive is
proposing for a quantity of 741Nos on M/s.A.B.Elastro Products Pvt
Ltd/Kolkata(Part-II firm).

3. It is stated that the performance of the above firms is satisfactory. The firm
has supplied the entire ordered quantity of 2469Nos.
4.

A copy Non stock indents(L/F-F368,369 ) are available in the case file to cover the
proposed option quantity.

5. The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7

Original Value of the PO.+30%


option clause qty of 1851Nos
Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.1,50,01,941.34

12342Nos
3702Nos
1851Nos
741Nos
Rs.5,59,499.46
Rs.1,55,61,440.
8
COS
04.05.2015

With
the
exercise of
above
8
option
9
clause, the
revised value will be with in the powers of original accepting authority ie.,
COS. As such, the proposal requires the concurrence of FA&.CAO/S&W.
In view of the financial advantage involved in the proposed option
clause and as per the subsequent TC recommendations, if approved we may
concur the proposal to exercise (+)30% quantity option clause for a total
quantity of 741Nos on
M/s.A.B.Elastro Products Pvt Ltd/Kol against
PO.NO.90921 dt:07.05.14.
Submitted for kind perusal and orders please.
SSO(A)/SF

Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 16.03.2015

Dy.CMM/G
Sub : Procurement of Decorative Thermosetting synthetic resin
bonded laminated sheet star dust gray under (+) 30% Option
Clause.
Ref : Your Note No:56 to 58 of Case file No.PO.75.14.1230.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 02.01.2015) for the above subject item are on higher side when compared
with the rates of the instant purchase order. In view of the financial advantage
to Railways and as recommended by subsequent tender committee, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on M/s.
RB Polyboards Ltd/SC for a quantity of 1920Nos against Po.No.91148 dt:
28.05.14 for Pl.No.75403651. The total value of the Po after exercising +30%
option clause works out to Rs.2,50,26,538.68 with original terms and
conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
NOTE/1
Sub : Procurement of Jointless Grooved copper contact wire(107 Sq
mm) under (+) 30% Option Clause against

P.O.No:34144,54035,29277,36031 dt:08.12.14 on M/s. Om Sai


Udyog Pvt Ltd/Kol.
Ref : Dy.CMM/Elecs Note No:26 to 31 of Case file No.PE.46.13.5030.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase Order has been
placed on M/s.Om Sai Udyog Pvt Ltd/Kol (AIR- Rs.5,66,099.98 per MT and
updated AIR rate is Rs. 5,48,120.56) with the acceptance of CMM/E for a
total value of Rs.1,815,4,826.36(L/F-N/22) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1. It is stated that a new tender was opened on 09.01.2015 in which the L1
tenderer has quoted AIR of 5,99,806.79PMT whereas the instant PO
updated rate is Rs.5,48,120.56PMT, which is less in rate by Rs.51,686.23
per MT. The new tender has been finalized by the tender committee duly
recommending to exercise (+)30% option clause on the instant Purchase
Order (L/F-342)and drop the present tender. As such, Stores department is
proposing to exercise (+)30% option clause on the instant Purchase Order.
As it is financially advantageous to Railways in exercising (+)30%
quantity option clause for a quantity of 9.62MT on the above firm.
2. It is stated that the performance of the firm is satisfactory. The firm has
supplied the entire ordered quantity for PO.Nos.34144,29277,36031
dt:08.12.14 and as against PO.No.54035 dt:08.12.14 the firm as offered the
material for inspection and Rites has passed the same on 14.03.2015. DP
of the above PO is expiring on 25.03.2015.
3. The Delivery Period of the subject PO is available upto 25.03.15
4. Necessary NS indents are available to cover the 30% option clause quantity
(F.345 to 349).

5. The financial implications of the proposed option clause are as follows:


1

Original Value of the PO.

2
3
4

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8
9

Total Value of the POs after


exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.1,81,54,826.
36
32.07Mts
9.62Mts
Nil
9.62Mts
Rs.54,45,881.8
0
Rs.2,36,00,708.
15
COS
25.03.15

In view of
the
financial
advantage involved in the proposed option clause and as per the subsequent
TC recommendations, if approved we may concur the proposal to exercise
(+)30% quantity option clause for a total quantity of 9.62Mts on M/s. OMSAI
Udyog India Pvt Ltd/Kol with PVC upper sealing may be pegged down to
rates obtained in the tender opened on 09.01.2015 against
PO.Nos.34144,54035,29277,36031 dt:08.12.14.
With the exercise of above option clause, the revised value will change the
powers of original accepting authority ie.,from CMM to COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of CONTROL Rod under (+) 30% Option Clause
against P.O.No:90920 dt:07.05.14 on M/s.General Stores and engg
Co Pvt Ltd/Kolkata.
Ref : Dy.CMM/C&Ws Note No:14,15 of Case file No.PW.38.13.1485.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase Order has been
placed on M/s.General Stores and Engg Co Pvt Ltd/Kolkata(AIR- Rs.920.23 per
No with the acceptance of CMM/M for a total value of Rs.19,52,728.06(L/FN/11) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firm as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1. It is stated that a new tender was opened on 10.03.2015 in which the L1
tenderer has quoted AIR rate of Rs.962.72per No. The instant PO AIR rate
is Rs.920.23 per No, which is less in rate by Rs.42.49per No. The New
tender was not finalized. Stores department is proposing to exercise
(+)30% option clause on the instant Purchase Order, as it is financially
advantageous to Railways in exercising (+)30% quantity option clause for
a quantity of 637Nos which was approved by CMM/M.
2.

It is stated that the performance of the firm is satisfactory. The firm has
supplied the entire ordered quantity of 2122Nos

3. The Delivery Period of the subject PO is available upto 30.04.15

4. Necessary indents are available to cover the 30% option clause quantity.
5. The financial implications of the proposed option clause are as follows:
1
2
3
4

Original Value of the PO.


Rs.19,52,728.06
Original Qty in the PO.
2122 Nos
(+) 30% option quantity
637 Nos
Qty already utilized under option
Nil
clause
5
Now proposed qty under option
637 Nos
clause
6
Value of the proposed option Qty
Rs.5,86,186.51
7
Total Value of the POs after
Rs.25,38,914.57
exercising (+) 30% option clause
In view of
8
Competency of Sanction required
CMM
the
financial
9
Delivery period available upto
30.04.15
advantage involved in the proposed option clause, if approved we may concur
the proposal to exercise (+)30% quantity option clause for a total quantity of
637 Nos on M/s. General Stores and engg Co. Pvt Ltd/Kolkata against
PO.No.90920 dt:07.05.14 duly reducing the +30% option clause quantity of
637 Nos in the subsequent tender.
With the exercise of above option clause, the revised value will be within
the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF
Submitted please.
SSO(A)/SF
Sr.AFA/SF

NOTE/99
Sub : Procurement of Polymer pads under (+) 30% Option Clause.
Ref : Dy.CMM/C&Ws Note No:53,54 of Case file No.PW.38.13.2034.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at folio-1/C may kindly be perused.
For procurement of the above subject item three Purchase Orders have
been placed on (i) M/s.Prag Industries India Pvt ltd/dehradun PartII(AIR- Rs.4365.90 per No.) (ii) M/s.Avadh Rubber(Part-II) (AIRRs.4365.90per No) & (iii) M/s.Aryan Exporters P Ltd/Lucknow (Part-II)
(AIR- Rs. 4365.90 per No) with the acceptance of COS for a total value of
Rs.1,77,34,285.80 (L/F-N/37) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above three firms on the basis of the higher rates received in
the subsequent tender opened on 11.03.15.

The proposal has been examined and the following are the observations:
1. It is proposed to exercise (+)30% quantity option clause on the above three
firms, as the rates received in subsequent tender are on higher side. It is
stated that a new tender was opened on 11.03.2015 in which the lowest PartII firm quoted Rs.4606.88 per No(L/F-335), whereas the subject POs AIR
rate is Rs.4365.90 per No. The new tender has not yet finalized. In view of
the financial advantage, executive has processed to exercise (+)30% quantity
option clause on the above three firms.
2. It is stated that the performance of the above three firms is satisfactory as
the firms M/s.Prag Industries India Pvt Ltd has supplied 1268 Nos out of the
total ordered quantity of 2113nos i.e (supplied 60%) and DP is ahead for the
balance unsupplied quantity, as against M/s. Avadh rubber/Dehradun the firm
has supplied the entire ordered quantity ie. (supplied 100%) and as against
M/s. Aryan Exporters Pvt Ltd/Lucknow the firm has supplied 325Nos out of the
total ordered quantity of 812 Nos (i.e supplied 40%) and DP is ahead for the
balance un supplied quantity upto 15.04.2015.
3. Necessary demand is available for covering the above option clause quantity.
4. The proposal has the Administrative approval of CMM/M (L/F-N-54) for
exercising option clause.

(PTO)

NOTE/2
5. The financial implications of the proposed option clause are as
follows:
1

Original Value of the three POs.

2
3
4
5
6
7

Original Qty in the 3 POs. (L/F-N/15)


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty (F-121/c)
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.1,77,34,285.
80
4062Nos
1219 Nos
Nil
1219 Nos
Rs.53,22,032.1
Rs.2,30,56,317.
9
COS
15.04.15/30.0
5.15

In view of the financial advantage involved in the proposed option


clause, if approved we may concur the proposal to exercise (+)30% quantity
option clause for a total quantity of 1219Nos i.e on (i).M/s.Avadh
Rubber/Dehradun for a quantity of 341Nos against Po.No.90912 dt:06.05.14,
(ii). M/s. Prag Industries India Pvt ltd/Deradun for a quantity of 634Nos against
PO.No.90913 dt:12.08.14 and on (iii)/M/s. Aryan Exporters Pvt Ltd/Lucknow
for a quantity of 244Nos against PO.No.90914 dt:27.10.14 duly reducing the
+30% option clause quantity of 1219 Nos in the subsequent tender and as
the new tender has not yet finalized and as the DP is expiring on 15.04.2015
for M/s. Aryan Exporters Pvt Ltd , executive will be advised that concurrence
is subject to the rates after finalization of new tender is not below the instant
Po rate.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the proposal
requires the concurrence of FA&CAO/S&W
Submitted please.
SSO(A)/SF
Sr.AFA/SF
Dy.CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
20.03.2015

Dt.

Dy.CMM/C&W
Sub : Procurement of CONTROL Rod under (+) 30% Option
Clause against P.O.No:90920 dt:07.05.14 on M/s.General
Stores and engg Co Pvt Ltd/Kolkata.
Ref : Dy.CMM/C&Ws Note No:14,15 of Case file
No.PW.38.13.1485.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
10.03.2015) for the above subject item is on higher side. The rate received
from Lowest tenderer is Rs.962.72 per No(AIR), whereas the instant Purchase
Order rate is Rs.920.23 per No(AIR). In view of the financial advantage,
finance concurrence is hereby signified for exercising (+) 30% Option Clause
on M/s.General Stores and Engg co Pvt Ltd/Kolkatal for a quantity of
637Nos against Po.No.90920 dt:07.05.14 and with original terms and conditions
with in Delivery Period. The total value of the contract including 30% option clause is
RS.25,38,914.57. Futher, it may be ensured that the tender opened on 10.03.15

for the subject item, rate should not be lower than the instant PO rate as the
new tender was not finalized.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.

2.. Ensuring that no lower rates have been received in terms of para 3.3
of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.. Fixing reasonable delivery schedule for the enhanced quantity.
4.. Ensuring availability of funds during the current financial year.
5..Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
(A.K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

For

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 24.03.2015

Dy.CMM/C&W
Sub:- Procurement of POH kit for air brake cylinder-reg- Exercising of
(+)30% option cause on M/s.Pew Engineering Pvt ltd/Howrah,
PO.No.92471 Dt:31.10.2014.
Ref:- Dy.CMM/C&W Note no. 18,19 of case file No.PC.30.14.3582.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is seen from the case file that
M/s.Pew Engineering Pvt Ltd/Howrah has offered the material for
inspection on 04.02.15 for a quantity of 1675Nos i.e only 31% of the
ordered quantity , and not furnished the details of material supplied,
further the balance 3613Nos quantity still to supply. As
such
performance of the firm is to be improved upon to consider option
clause.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
24.03.2015
Dy.CMM/Elec

Dt.

Sub : Procurement of Jointless Grooved copper contact wire(107


Sq mm) under (+) 30% Option Clause against
P.O.Nos:34144,54035,29277,36031 dt:08.12.14 on M/s. Om
Sai Udyog Pvt Ltd/Kol.
Ref : Dy.CMM/Elecs Note No: 26 to 31 of Case file
No.PE.46.13.5030.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 09.01.2015) for the above subject item is on higher side. The rate received
from Lowest tenderer is Rs.5,99,806.79 PMT(AIR), whereas the instant
Purchase Order updated rate is Rs.5,48,120.56PMT(AIR). In view of the
financial advantage and as per the subsequent TC recommendations, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on M/s.
Om Sai Udyog Pvt Ltd/Kol for a quantity of 9.62MT against
Po.Nos.34144,54035,29277,36031 dt:08.12.14 with PVC upper sealing pegged
down to rates obtained in the tender opened on 09.01.2015 and with original
terms and conditions with in Delivery Period. The total value of the contract including
30% option clause is RS.2,36,00,708.15.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., COS.
2.. Ensuring that no lower rates have been received in terms of para 3.3
of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.. Fixing reasonable delivery schedule for the enhanced quantity.
4.. Ensuring availability of funds during the current financial year.
5..Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W
Encl : The concerned file.
(A.K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W

For

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
30-09-2013
Dy.CMM/C&W
Sub : Procurement of Air Brake Hose Coupling assembly under
(+) 30% Option Clause.
Ref : Your Note No:117 of Case file No.PW.38.12.1543
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 25.02.14 & 26.09.14 for the above subject item are on
higher side when compared with the rates of the instant purchase
orders. In view of the financial advantage to Railways, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
(i) M/s.A.B.Elastro Products Pvt Ltd/Kol for a quantity of 741Nos against
PO.NO. 90921 dt:07.05.14 only with original terms and conditions with
in Delivery Period. Further, as regards to M/s. General Rubber Co P
Ltd/NDls after satisfactory performance the case may be processed for
concurrence and as against expired purchase orders(M/s.IMT cables Pvt
Ltd & ASP sealins Products ltd) it is advised to take consent from the
firms for accepting 30% option clause and refix the DP for the enhanced
quantity and resubmitted so that financial advantage is not lost.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.

(A.K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

For

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 25.03.2015

Dy.CMM/DSL
Sub:- Procurement of resin impregnated pleated filter paper-Exercising
of (+)30% option cause on M/s.G.S.Products/Dehradun,
PO.No.91684 Dt:30.07.14.
Ref:- Dy.CMM/Dsl Note no. 29 of case file No.Dsl.10.13.3201.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.

1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5


Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is seen from the case file that
M/s.G.S.Products /Dehradun against PO.No.91684 dt:30.07.14 has
supplied 1497 Nos only out of the total ordered quantity of 35224Nos.
As such performance of the firm is to be improved upon to consider
option clause.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
30.03.2015
Dy.CMM/C&W
Sub : Procurement of Polymer pads under (+) 30% Option
Clause.
Ref : Dy.CMM/C&Ws Note No:53,54 of Case file
No.PW.38.13.2034.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 11.03.2015) for the above subject item are on higher side when compared
with the rates of the instant purchase order. In view of the financial

advantage involved in instant purchase orders, finance concurrence is hereby


signified for exercising (+) 30% Option Clause on M/s.Avadh
Rubber/Dehradun for a quantity of 341Nos agains Po.No. 90912
dt:06.05.14, (ii) M/s.Prag Industries India Pvt ltd/Deradun for a
quantity of 634Nos against pO.No. 90913 dt:12.08.14 and on (iii).
M/s.
Aryan Exporters Pvt ltd/Lucknow for a quantity of 244Nos against
Po.No.90914 dt:27.10.14 duly reducing the total 30% option clause
quantity of 1219Nos in the subsequent tender and as the new tender
has not yet finalized and as the DP is expiring on 15.04.2015 for M/s.
Aryan Exporters Pvt Ltd, it is advised that concurrence is subject to
the rates after finalization of new tender is not below the instant Po
rate, with original terms and conditions with in Delivery Period. Total value of
the Purchase order after exercising 30% option clause is Rs.2,30,56,317.9
only
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3
of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Ensuring reduction of enhanced quantity from the future tenders.
6. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

FINANCIAL

For
OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 30.03.2015

Dy.CMM/C&W
Sub:- Procurement of Control Rod -Exercising of (+)30% option cause
on M/s.General Stores and Engg Co Pvt Ltd/Kolkata,PO.No.91467
dt:02.07.14.
Ref:- Dy.CMM/C&W Note no. 18of case file No.PW.38.13.2188.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.

1. Finalized TC minutes for the tender opened on 17.03.2015 may be


placed on file to gauge the rate reasonability.
2. Further, the latest supply position made against the Po.No.91467 dt .
02.07.14may be placed on file.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Brushless Alternator 4.5 K W.Exercising of (+) 30%
Option Clause on M/s.Stone India Ltd/Kol, M/s.Kapsons Industries
Ltd/Jalandhar, M/s. I.C.Electrical Co Pvt Ltd/NDLS.
Ref : Dy.CMM/Elec Note No:43 to46, 49 of Case file No. PE.45.13.1043.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item three Purchase Order has been
placed on (i).M/s.Stone India Ltd/Kol(RDSO PT.I)(AIR-95000/- per No),(ii).
M/s. I.C.Elec. Co Ltd/New Delhi(Pt.I firm)(AIR-Rs.95,000/-per No) &(iii).
M/s.Kapsons Industries Ltd/Jalandhar(RDSO Pt.II)(AIR-Rs.93,270/-per No)
with the acceptance of CMM for a total value of Rs.1,32,39,450(L/F-N/26).
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on the above firm as the demand is available.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the recommendations of the

subsequent tender committee. It is stated that a new tender was


opened on 06.01.2015 for the subject item. The All inclusive rate
quoted by lowest tenderer(RDSO PT.I) in the new tender is
Rs.99890/- per NO and Part II firm AIR rate is Rs. 95,000/- per No. As
the rates of instant POs are lower than the subsequent tender and
financially beneficial to Railways, JAG tender committee has
recommended to reserve its recommendations for the quanity option
clause in the LP Pos till the outcome of negotiations with the Pt.I.
source.Further it is stated by Dy.CMM/Elec that suplimentary T.C. after
negotiations is under signature with finance member. Negotiated rate of Part
II source is Rs. 93270/-(AIR) and Part-I source is Rs. 95000/-(AIR) which is
higher than the LP rate.

7. A copy ANE (L/F-F.279) is available in the case file to cover the proposed option
quantity.
8. It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from the History sheet that the firm has
supplied 75% of the PO quanity for PO.No.90627 Dt: 22.03.13) & 67% of the Po
quanity for PO.NO.90629 Dt:22.03.13
9. The financial implications of the proposed option clause are as follows:
Original Value of the PO.
Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30% option
clause
Competency of Sanction required
Delivery period available upto

Rs. 1,39,65,053
158Sets
35sets
Nil
35sets
Rs.33,25,000
Rs.1,72,90,053
CMM
31-03-2014

NOTE-2
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Dy.CAO/S&W.
In view of the financial advantage involved and as recommended by SAG tender
committee of subsequent tender, if approved we may concur the proposal.
Submitted for kind perusal and orders please.

Sr.AFA/(SF)

SSO(A)/(SF)

FINANCIAL

No. ASF/Q 01
Dy.CMM/C&W

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 31.03.2015

Sub:- Procurement of Modified Elastomeric Pads-Exercising of (+)30%


option cause on M/s.M.G,M.Rubbers & on M/s. Basant Rubber
factory.
Ref:- Dy.CMM/C&w Note no. 38 of case file No.PW.38.13.1145.
***
The proposal submitted in connection with exercising of (+) 30 % Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is seen from the case file that
M/s.MGM Rubber against PO.No.91808 dt:12.08.14 has supplied
4275Nos only out of the total ordered quantity of 14867Nos(i.e 28%
supplied) . As such performance of the firm is to be improved upon to
consider option clause.
2. As against M/s Basant Rubber Factory It is stated vide N/38 that firm
has supplied 19628Nos and balance to supply is 12787Nos, but as per
SPS at F.478 the firm has to supply still 17265Nos which is
contradictory. As such case may be resubmitted with latest SPS duly
updating the supplies.
Encl : The concerned file.
(A.K. GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No. ASF/Q 01

Dt. 07.04.2015

Dy.CMM/DSL
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:91684 Dt:30.07.14
on M/s.
G.S.Products/Dehradun.
Ref : Your Note No:31 of Case file No. DSL/10/13/3201.
-oOoThe proposal submitted in connection with exercising of (+) 30 %
Option Clause on the above subject Purchase Order has been examined
and the following are the observations.
In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of the
firm should be satisfactory.
As per SPS placed on the file the quantity supplied is only 1497Nos,
but as per N/29 the quantity supplied is shown as 7000Nos which is
conflicting, the same may be clarified with necessary documents.
Since the DP of the said Purchase order is available upto
31.08.2014 and as the firm has supplied only 4% of the ordered
quantity), instead of processing the proposal time and again for exercising
option clause, it is advised to insist the firm to improve the supplies so as
to meet our requirements. After satisfactory performance only against the
said PO the case may be processed for concurrence.
Encl : The concerned file.

(A.K. GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of All gear drive mechanism for electric lifting
barrier under (+) 30% Option Clause against
P.O.No:70098 dt:12.08.2014 on M/s.Global Signage and
Creativity.
Ref : Dy.CMM/Elecs Note No:17,18 of Case file
No.PS.54.13.5007.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/Elec,
which is placed at folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase Order
has been placed on M/s.Global Signage and Creativity(AIR- Rs.32995/per No with the acceptance of CMM/E for a total value of
Rs.79,18,800(L/F-N/13) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on the above firm as the rates received in subsequent
new tender are on higher side.
The proposal
observations:

has

been

examined

and

the

following

are

the

1. It is stated that a new tender was opened on 24.03.2015 in which


the L1 tenderer has quoted AIR rate of Rs.33665.63per No. The
instant PO AIR rate is Rs.32,995 per No, which is less in rate by
Rs.670.63per No. The New tender was not finalized.
Stores
department is proposing to exercise (+)30% option clause on the
instant Purchase Order, as it is financially advantageous to
Railways and DP of the subject Po is expiring on 22.04.2015. Hence

it is proposed to exercise (+)30% quantity option clause for a


quantity of 72Nos .
2.

It is stated that the performance of the firm is satisfactory. The


firm has supplied the entire ordered quantity of 240Nos

3. The Delivery Period of the subject PO is available upto 22.04.15


4. Necessary indents are available to cover the 30% option clause
quantity.
5. The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6
7

Original Value of the PO.


Original Qty in the PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.79,18,800
240 Nos
72 Nos
Nil
72 Nos
Rs.23,75,640
Rs.1,02,94,440

In
view
of the
financial advantage involved in the proposed option clause, if approved
we may concur the proposal to exercise (+)30% quantity option clause
for a total quantity of 72 Nos on M/s.Global Signage and Creativity
against PO.No.70098 dt:12.08.14 duly reducing the +30% option clause
quantity of 72 Nos in the subsequent tender and COS will be advised
that the concurrence is subject to tender opened on 24.03.2015 for the
subject item rate should not be lower than the instant PO rate as the
new tender was not finalized.
8
9

CMM
22.04.15

With the exercise of above option clause, the revised value will
exceed 1Crore as such the proposal requires the concurrence of
Dy.CAO/S&W and sanction of CMM.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 09.04.2015

Dy.CMM/C&W
Sub:- Procurement of POH kit-Exercising of (+)30% option cause on
M/s.Black Burn and Co Pvt Ltd/Calcutta, PO.No.92533
Dt:05.11.2014.
Ref:- Dy.CMM/C&W Note no. 23,24 of case file No.PC.30.13.3583.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is seen from the case file that
M/s.Black Burn and Co Pvt Ltd/Calcutta has not commenced the
supplies yet against the said PO. Hence performance of the firm is to
be improved upon to consider option clause.
2. Copy of indent to be placed on file for exercising option clause.
3. Finalized T.C.minutes for the tender opened on 26.03.2015 may be
placed on file to assess rate reasonability
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 09.04.2015

Dy.CMM/C&W
Sub:- Procurement of Set of valve regulated lead acid batteriesexercising of (+)30% option cause against (i) M/s.Microtex
Energy Pvt Ltd/SBC,against PO.No.91890 dt:22.08.14
(ii).M/s. Exide Ind Ltd/Kol against PO.No.91889 dt:22.08.14
and (iii) M/s.HBL power systems ltd/Hyb against Po.No.91888
dt:22.08.14
Ref:- Dy.CMM/Elec Note no.25,26 of case file No.PE.45.14.1021.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.
1. In terms of Para 3.2 of Railway Board letter No: 99/RS(G)/779/5

Dt:12.03.10, option clause should be operated only where there is a clear


demand for additional quantities and benefits accrue to Railways in terms
of existing contractual rates being reasonable/lower than newly opened
tendered rates. Hence, it is advised that the subject PO rate may be
compared with other railway rates for the subject item, if not available in
this railway to assess the rate reasonability.
2. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of the
firms should be satisfactory. It is seen from the case file that above
mentioned three firms have not commenced the supplies yet against the

said PO. Hence performance of the firm is to be improved upon to


consider option clause.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

N/1
Sub : Procurement of Control Rod Exercising of (+) 30% quantity
Option Clause-Reg.
Ref : Dy.CMM/C&Ws Note No:18 to20 of Case file No.
38.13.2188.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio-1/c may kindly be perused.
For procurement of the above subject item one Purchase Order
has been placed on M/s. General Stores and Engg Co Pvt
Ltd/Kolkata(AIR-Rs.559.22 each No)with the acceptance of Dy.CMM
for a total value of Rs.10,84,886.80 (L/F-N/14).
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on the above firm as the demand available for the
subject item.
The proposal
observations:

has

been

examined

and

the

following

are

the

1. The proposal is being initiated based on the higher rates received in the
subsequent tender. It is stated that a new tender was opened on
17.03.2015 for the subject item. The All inclusive rate quoted by L1 is

Rs.604.45(AIR) whereas the instant PO rate is Rs. 559.22 per No. The
New tender was not finalized. Stores department is proposing to
exercise (+)30% option clause on the instant Purchase Order, as it is
financially advantageous to Railways and DP of the subject Po is
expiring on 30.04.2015. Hence it is proposed to exercise (+)30%
quantity option clause for a quantity of 582Nos .
2. It is certified by the stores department that the performance of the firm
is satisfactory and the firm has supplied the entire ordered quantity
of 1940Nos.
3. The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6
7
8
9

Original Value of the PO.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required
DP available upto

Rs.10,84,886.80.
1940 Nos
582 Nos
Nil
582 Nos
Rs.325466.04
Rs.14,10,352.84
Dy.CMM
30.04.2015

4. Necessary ANE is available in the case file to cover the proposed


option quantity.
In view of the financial advantage, if approved we may concur the
above proposal to exercise (+)30% quantity option clause for a total
quantity of 582Nos on M/s.General Stores and Engg Co Pvt Ltd/Kolkata
against PO.No.91467 dt:02.07.14 duly reducing the +30% option clause
quantity of 582 Nos in the subsequent tender and COS will be advised
that the concurrence is subject to tender opened on 17.03.2015 for the
subject item rate should not be lower than the instant PO rate as the
new tender was not finalized.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., Dy.CMM. As such, the
proposal requires the concurrence of Sr.AFA/SF.
Submitted for kind perusal and orders please.

SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

SECUNDERABAD
No.ASF/Q 01

Dt. 15.04.2015

Dy.CMM/C&W
Sub:- Procurement of Constant Contact Polyurethene side bearer pad
-Exercising of (+)30% option cause on M/s.Prag Industries
India Pvt Ltd & M/s. Aryan Exporters Pvt Ltd.
Ref:- Dy.CMM/C&W Note no. 37,38 of case file No.PW.38.14.2198.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.
1. In terms of Para 3.4 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory. It is seen from the case file that
M/s.Prag Industries India Pvt Ltd, against Po.No. 92630 dt:13.11.14
has supplied 264Nos only out of 1320Nos total ordered quantity i.e
supplied 20% only) and as against M/s.Aryan Exporters Pvt
Ltd/Lucknow against PO.No.92631 dt:13.11.14 has supplied 1328Nos
out of total ordered quantity of 2454Nos. Hence performance of the
firm is to be improved upon to consider option clause.
2. Copy of indent to be placed on file for exercising option clause.
3. Finalized T.C.minutes for the tender opened on 09.04.2015 may be
placed on file to assess rate reasonability
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 15.04.2015

Dy.CMM/Elec
Sub:- Procurement of un insulated cadmium copper catenary wire
-Exercising of (+)30% option cause on M/s.Sight Sound
Electronics India Pvt Ltd/Delhi against PO.Nos.92490,62511,29248
dt:31.10.14.
Ref:- Dy.CMM/Elec Note no.32 to 35 of case file No.PE.46.13.5027.
***
The proposal submitted in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders have been examined and the
following are the observations.
1. In terms of Para 3.4 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance of
the firm should be satisfactory in the present contract. It is seen from
the case file that M/s.Sight Sound Electronics India Pvt Ltd/Delhi
against the above POs, inspection has been done but the receipt of
material at the consignee end has not been furnished. As such details
of receipts may be placed on file to deal further.
2. Copy of indent to be placed on file for exercising option clause.
3. PVC calculation sheet against the POs along with Documentary
evidence may be furnished to assess rate reasonability.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

Sub : Procurement of Resin Impregnated pleated filter paper


- Exercising of (+) 30% Option Clause.P.O.No:91684
Dt:30.07.14.
Ref :Dy.CMM/DSL Note No:29 to31 of Case file No.DSL-10-133201.
-oOoCMM/M has resubmitted the proposal placed at flag A, duly seeking to accord
concurrence as proposed vide N/30 earlier and also made an endorsement to
discuss the issue with FA&CAO/S&W which may please be perused.
Earlier the case was returned twice due to non availability of performance
against the present contract(instant PO) placed at F/1 and F/2 which may
please be perused.
In terms of Railway Board Guidelines(Lr.No.99/RS(g)779/5 dated
12.03.2010 para 3.4)(placed at F/4,5) while exercising option clause on firm it
should be ensured that the performance of the firm on whom option clause is
proposed to be exercised is satisfactory in the present contract.

Further, it is seen from the case file that the firm has supplied 7000nos
out of the total ordered quantity of 35224Nos(i.e supplied 20% only) and the
delivery period is available upto 31.08.2015, as such instead of insisting finance
to concur option clause proposal it is advised the executive to advice the firm to
improve the supplies to meet the requirements.
Even though higher rates were received in the subsequent tender and it is
financially advantage to Railways, as per Boards guidelines for exercising option
clause 4 parameters are to be fulfilled viz( Performance, Demand/Indent,
Delivery period and Rate reasonability).

In view of the above, put up for orders whether to concur


the proposal as recommended by subsequent SAG tender committee of
new tender or otherwise please.
SSO(A)/Sf

Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
16.04.2015
Dy.CMM/C&W
Sub : Procurement of All gear drive mechanism for electric lifting
barrier under (+) 30% Option Clause against

P.O.No:70098 dt:12.08.2014 on M/s.Global Signage and


Creativity.
Ref : Dy.CMM/Elecs Note No:17,18 of Case file
No.PS.54.13.5007.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 24.03.2015 for the above subject item is on higher side
when compared with the rates of the instant purchase orders. In view of
the financial advantage to Railways, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on (i) M/s.Global Signage
and creativity for a quantity of 72Nos against PO.NO.70098
dt:12.08.2014, duly reducing the 30% option clause quantity in the next
tender with original terms and conditions with in Delivery Period.The
Total value of the Po after exercising +30% option clause is
Rs.1,02,94,440/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/1
Sub : Procurement of Low Maintenance Lead Acid Loco battery
of 75AH capacity exercising of (+) 30% Option Clause on
M/s.(i) M/s. Southern Batteries Pvt Ltd/Bangalore (ii) M/s.
The Bharat Battery Mfg Co Pvt Ltd/Kolkata (iii). Mysore
thermo electric Pvt Ltd/Bangalore. against
Po.Nos:91298,91297,91296 dt:17.06.14.
Ref : Dy.CMM/Elecs Note No:31,32of Case file
No.PA.25.13.2905.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/Elec,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item Three Purchase Orders
have been placed on (i) M/s.Southern Batteries Pvt Ltd/Bangalore,
Part II firm(AIR-12,124.25 per unit and update price is Rs.10950.36
per unit) (ii) M/s.Mysore electric (P) Ltd/SBC Part I firm(AIRRs.12187.13 per unit and updated rate is Rs. 11018.80 per
unit.), (iii) M/s.The Bharat Battery Mfg Co Ltd Part II firm(AIRRs.12187.13 per unit and updated rate is Rs. 11018.80 per unit)
with
the
acceptance
of
CMM
for
a
total
value
of
Rs.1,18,12,335.62(L/F-N/19) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on the above three firms.
1. It is stated that a new tender was opened on 12.02.2015 in which
the L1 Part I tenderer has quoted AIR Rs.11,237.40 per unit
without Finance cost of SD. The instant POs updated rate is AIR
Rs.11,018.80 per unit, similarly, the rates quoted by L1 Part II firm
is AIR- Rs.11,125.33 per unit, whereas the Instant PO updated
rate is AIR- Rs.10,950.36 per unit. The new tender has been
dropped as the rates received are on higher side and duly
recommending to exercise (+)30% option clause in the instant
Purchase Order(L/F-231 ante), As such, Stores department is
proposing to exercise (+)30% option clause on the instant Purchase
Orders. As it is financially advantageous to Railways in exercising
(+)30% quantity option clause for a quantity of (43+148+99=290
Nos) on the above firms.
2. It is stated that the performance of the firm is satisfactory.
However, it is observed that M/s.Southern Batteries Pvt Ltd/SBC has

supplied 82 Nos out of total ordered quantity of 146Nos i.e supplied


56% and as against M/s. The Bharat battery mfg co pvt ltd has
supplied 375nos out of total ordered quantity of 494Nos i.e supplied
76% and as against M/s.Mysore thermo electric Pvt Ltd the firm has
supplied 197Nos out of 330Nos i.e supplied 60%.
3. The Delivery Period of the subject PO is available upto 30.04.2015.
4. Necessary Indent is available to cover the proposed option clause
quantity.
5. The financial implications of the proposed option clause are as
follows:
1

Original Value of the PO.

2
3
4
5
6

Original Qty in the 3PO(146+494+330).


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the PO after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.1,18,12,335
.62
970Nos
290 Nos
Nil
290 Nos
Rs.35,31,563.8
6
Rs.1,53,43,899
.48
CMM
30.04.2015

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage and as per the recommendations of
the subsequent tender committee option clause is exercised on
M/s.Southern Batteries Pvt Ltd/SBC against PO.No.91298 dt:17.06.14 for
a quantity of 43units and on M/s. Mysore Electric P Ltd/SBC against
PO.No.91296 dt:17.06.14 for a quantity of 99units and on M/s. The
Bharat Battery Mfg Co Ltd against Po.No.91297 dt:17.06.14 for a
quantity of 148Nos with PVC upper sealing may be pegged down
to rates obtained in the tender opened on 12.02.2015.
Submitted for kind perusal and orders please.
SO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
17.04.2015
Dy.CMM/C&W
Sub : Procurement of Control Rod under (+) 30% Option
Clause against P.O.No:91467 dt:02.07.14 on M/s.General
Stores and Engg Co Pvt Ltd/Kol.
Ref : Dy.CMM/Elecs Note No:18,19 of Case file
No.PW.38.13.2188.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Orders has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 17.03.2015 for the above subject item is on higher side
when compared with the rates of the instant purchase orders. In view of
the financial advantage to Railways, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on (i) M/s.General Stores
and Engg Co Pvt Ltd/Kol for a quantity of 582Nos against PO.NO.91467
dt:02.07.14, duly reducing the 30% option clause quantity in the next
tender with original terms and conditions with in Delivery Period.The
Total value of the Po after exercising +30% option clause is
Rs.14,10,352.84/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., Dy.CMM.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.

Encl : The concerned file.

(A.K.GANESHAN )
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/1
Sub : Coverage of LED signal aspects (SHUNT, ROUTE &
CALLING ON) under (+) 30% Option Clause on M/s.RT
Vision Technologies (P) Ltd/Noida & M/s. Power Technologies
Corporation.
Ref : Dy.CMM/S&Ts Note No: 36 to 38 of Case file
No.PS.56.13.1180.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject items, received from Dy.CMM/S&T,
which is placed at Folio-1/C may kindly be perused.
For procurement of the above subject item Six Purchase Orders
have been placed on(i) M/s.RT Vision Technologies (P) Ltd/Noida (All
inclusive Rates of Route & shunt- Rs.5,910,Calling on- Rs.6,940 per No.)
& (ii). M/s. Power Technologies Corporation(All inclusive Rates of Route
& shunt- Rs.5,910,Calling on- Rs.6,940 per No.) with the acceptance of
CMM for a total value of Rs.73,57,320(L/F-N/25) with (+)30% option
clause.
Now, Stores branch is proposing to exercise (+)30% quantity
option clause on the above firms as the rates received in subsequent
new tender of this Railway on higher side.
The proposal
observations:

has

been

examined

and

the

following

are

the

1. The proposal is being initiated based on the higher rates received in the
subsequent tender. It is stated that a new tender was opened on
30.12.2014 for the subject item. The All inclusive rate accepted is
Rs.5950/- for Route and Shunt and Rs.6950/- for Calling on, whereas the
instant PO rate is Rs.5910/- for Route & shunt and Rs.6940/- for Calling
on. As the rates of instant PO is lower than the subsequent tender and
financially beneficial to Railways, JAG tender committee has
recommended to invoke (+)30% option clause (L/F- 292Ante) on the
instant PO for a total quantity of 362Nos(Shunt-126,Route-183,Calling
on-53) on the above firms.
2. It is stated that the performance of the firms are satisfactory. The firm
M/s. R.T.Vision has supplied 50% of the ordered quantity and DP is
ahead for the balance quantity i.e 30.04.2015, as against M/s. Power
Technologies the firm has supplied 92% of the ordered quantity and DP
is ahead for the balance quantity.
3. The Delivery Period of the subject POs is expiring on 30.04.2015.
4. Necessary demands are available in the case file to cover the proposed
30% option clause quantity.

NOTE/2
5.The financial implications of the proposed option clause are as
follows:
1
2
3
4
5
6
7
8
9

Original Value of Six POs.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto

Rs. 73,57,320
1213 Nos
362 Nos
Nil
362 Nos
Rs.21,94,010
Rs.95,51,330
CMM
30.04.2015

In view of the financial advantage involved in the proposed option


clause, and as per the JAG Tender committee recommendations, if
approved we may concur the proposal to exercise (+)30% quantity
option clause for a total quantity of 362Nos((M/s.R.T.Vision-

144Nos(Shunt-50Nos, Route-73Nos & Calling on-21 Nos against


Po.No.91030
dt:19.05.2014
and
on
M/s.Power
Technologies216Nos(Shunt-75Nos, Route-110Nos, Calling On-31nos) against
PO.No.s91031,36012,29098,23060,54017 dt:19.05.2014
With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such,
the proposal requires the concurrence of Dy.CAO/S&W.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

NOTE/1
Sub : Procurement of Balmerol Prototrac Lube- Exercising of (+)
30%
Option Clause on M/s. Balmer Lawrie against P.O.No:91523
dt:10.07.14.
Ref :Dy.CMM/Gs Note No:16 to 20 of Case file No.PO.80.14.1235.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/G,
which is placed at Folio- 1/C may kindly be perused.

For procurement of the above subject item One Purchase Order


has been placed on M/s.Balmer Lawrie & Co Ltd/Chennai at an all
inclusive rate of Rs.151.97/- per number and at a total value of
Rs.73,34,072.20 with the acceptance of CMM/G (L/F-N/11).
Now, it is proposed to exercise (+)30% quantity option clause on
the above firm as the demand is available for the subject item.
Earlier, this office has returned the proposal twice which may
kindly be perused(F/80,81) to comply with Boards guidelines that the
existing contractual rate being reasonable than newly opened tender
rates.
In reply Dy.CMM/G has stated that the basic rate quoted by the
firm is same for the subject item i.e 116/-. The AIR difference is due to
reduction of ED from 14.42% to 14% which is applicable to Qty yet to
be supplied by the firm due to SVC as such the AIR of both instant and
subsequent tender rate is same.
The proposal
observations:

has

been

examined

and

the

following

are

the

1. The proposal is being initiated based on the requirement (new heading


at SMM/DSD/GTL depot). It is stated that a new tender was opened on
24.03.2015(F/87) for the subject item. The All inclusive quoted by the
L1(single offer) is Rs.151.41 whereas the instant PO rate is
Rs.151.41(duly apply SVC clause). As the rates of instant PO is same
and in view of the quantity requirement , Stores Branch has proposed to
invoke (+)30% option clause on the instant PO for a total quantity of
3000Kgs.
2. It is certified by the stores department that the performance of the firm
is satisfactory. However, it is observed from Stock position slip (L/F75,89) that the firm has supplied 33060Kgs out of the total ordered
quantity of 48260Kgs i.e supplied 68% and DP is ahead for the balance
quantity.
3. Delivery Period for the subject PO is available upto 31.05.2015.

4. The financial implications of the proposed option clause are as follows:


1

Original Value of the PO.

Original Qty in the POs.

3
4
5
6
7

(+) 30% option quantity


Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the PO after exercising (+)
30% option clause
Competency of Sanction required

Rs.73,34,072.
20
48,260
Kgs
14,478Kgs
Nil
3000Kgs
Rs.4,55,910
Rs.77,89,982.
2
CMM

5. Necessary Demand is available in the case file to cover the proposed


option quantity.
With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Sr.AFA/SF.
In view of the above, quantity requirement for new heading at
SMM/DSD/GTL if approved we may concur the proposal to exercise
(+)30% quantity option clause for a total quantity of 3000Kgs on M/s.
Balmer Lawrie & Company Ltd/Chennai against PO.No.91523
dt:10.07.14 subject to tender opened on 24.03.2015 for the subject
item rate should not be lower than the instant PO rate as the new
tender was not finalized.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt.
22.04.2015
Dy.CMM/G
Sub : Procurement of Balmerol Prototrac Lube- Exercising of (+)
30% Option Clause on M/s. Balmer Lawrie against
P.O.No:91523 dt:10.07.14.
Ref :Dy.CMM/Gs Note No:16 to 20 of Case file No.PO.80.14.1235.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 24.03.2015) for the above subject item is same when compared with the
rates of the instant purchase order. In view of the quantity requirement for
new heading at SMM/DSD/GTL, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Balmer Lawrie
& Co
Ltd/Chennai for a quantity of 3000Kgs against Po.No. 91523
dt:10.07.2014 duly reducing the total 30% option clause quantity of
3000Kgs in the subsequent tender and as the new tender has not yet
finalized and as the DP is expiring on 31.05.2015, it is advised that
concurrence is subject to the rates after finalization of new tender is
not below the instant Po rate, with original terms and conditions with in
Delivery Period. Total value of the Purchase order after exercising 30% option
clause is Rs.77,89,982.20 only
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3
of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Ensuring reduction of enhanced quantity from the future tenders.
6. Getting the MPOs vetted by Stores Finance section.

7. Necessary original Indent may be placed on file for vetting MPOs.


Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For
N/1

Sub : Procurement of UIC type rubber vestibule Assembly. exercising


of
(+) 30% Option Clause on M/s.Suresh Synth Chem Industries Pvt
Ltd/Mumbai(pt.II) and on M/s. Basant Rubber Factory
Ltd/Mumbai.
Ref:Dy.CMM/C&Ws Note No:56,57 of Casefile No. PC.30.13.3621.
-oOoA proposal seeking finance concurrence for operating (+) 30%
option clause on the above subject item, received from Dy.CMM/C&W,
which is placed at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase Order
have been placed on M/s. Suresh Synth Chem Inds Pvt
ltd/Mumbai- Pt.II firm (AIR-Rs.26,300per Number) for tender opened
on 28.02.14 and against tender opened on 10.09.14 three Purchase
orders have been placed on (i).M/s. Basant Rubber Factory
Ltd/Mumbai(Pt.II)(AIR Rs.32384.96 (ii).M/s.Ameenji Rubber Pvt
ltd/SC(Pt.I)(AIR-36950/per
No
and
(iii).
M/s.Kiran
rubber
Products/Pune(Pt.I) (AIR-Rs.36950/-per No) with the acceptance of
CMM/M for a total value of Rs.20,77,700/- and Rs.1,27,47,911.44(L/FN/21,44).
Now stores is proposing 30% option clause against part II firms
(i)M/s. Basant Rubber Factory Ltd/Mumbai and (ii)M/s. Suresh synth
Chem Inds Pvt ltd/Mumbai.
The proposal
observations:

has

been

examined

and

the

following

are

the

1. It is stated that a new tender was opened on 27.03.2015 in which the


lowest Part II firm has quoted Rs.33,512.06per Number(AIR), whereas
the subject Part II POs rate is Rs.26300/- & 32384.96. The new tender
is not yet finalized. Stores department is proposing to exercise (+)30%

option clause on the above firms as it is financially advantageous to


Railways in exercising quantity option clause . It is seen from the case
file that M/s. Basant rubber Factory Ltd/Mumbai performance is not
satisfactory as such after satisfactory performance we can consider the
proposal of 30% option clause and as the firm M/s. Suresh SynthChem
Inds pvt ltd/Mumbai has supplied the entire order quantity we may
agree.
2.

Performance of the firm is certified as satisfactory. Howerver, it is


observed from stock position slip that M/s. Suresh Synth Chem Inds
Pvt ltd/Mumbai- has supplied the entire ordered quantity of 79 Nos on
10.01.2015 and the Stores Branch has refixed the DP against the firm
for exercising option clause as the firm accepted for supply of +30%
option clause quantity(F/631). And as against M/s.Basant Rubber
Factory Ltd/Mumbai firm has not commenced the ordered quantity and
DD is ahead for the total ordered quantity. Hence we may advise COS
after satisfactory performance the case may be processed

3. Necessary Demand is available in the case file to cover the proposed


option clause.
4. CMM approval was obtained to operate +30% option clause.
5. The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6
7

8
9

Original Value of the PO for one PO


only.
Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
(including already option clause
exercised POs)
Competency of Sanction required
Delivery period available upto

Rs. 20,77,700/79Nos
23Nos
Nil
23 Nos
Rs.6,04,900
Rs.26,82,600

CMM
31.05.2015

With the exercise of above option clause, the revised value will
be with in the powers of original accepting authority ie., CMM. As

such, the proposal requires the concurrence of Dy.CAO/S&W(Original


TC member).
In view of the financial advantage involved in the present option
clause, if approved we may concur the proposal on M/s.Suresh Synth
Chem Industries Pvt Ltd/Mumbai against Po.No.91428 dt:30.06.14 for a
quantity of 23Nos and as against M/s. Basant Rubber Factory
Ltd/Mumbai COS office will be advised to process the case after
satisfactory performance.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

Dy.CAO/S&W

FINANCIAL

No.ASF/Q 01
27.04.2015

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/S&T
Sub : Coverage of LED signal aspects (SHUNT, ROUTE & CALLING
ON) under (+) 30% Option Clause on M/s.RT Vision
Technologies (P) Ltd/Noida against Po.No.91030 dt:19.05.2014 &
M/s.Power Technologies Corporation against
PO.Nos.91031,36012,29098,23060,54017 dt:19.05.14.
Ref : Dy.CMMS&Ts Note No: 36 to 38 of Case file No.PS.56.13.1180.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.

It is observed that the rates received in subsequent new tender (ie.,


opened on 30.12.2014) for the above subject item are on higher side when
compared with the rates of the instant purchase orders. In view of the
financial advantage involved in instant purchase orders and as per the JAG
Tender committee recommendations, finance concurrence is hereby signified
for exercising (+) 30% Option Clause for a Total quantity of 360Nos (M/s.RT
Vision Technologies (P) Ltd/Noida against Po.No.91030 dt:19.05.14
for a total quantity of 144Nos (Shunt:50Nos, Route:73Nos & Calling
on:21 Nos)
and on M/s. Power
Technologies against
PO.Nos.91031,36012,29098,23060,54017 dt:19.05.14 for a quantity
of 216Nos (Shunt:75Nos, Route:110Nos & Calling on:31Nos) with the
original terms and conditions of the Purchase Orders with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original tender accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3
of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of Dy.CAO/T.
Encl : The concerned file.
(P.V.RAGHAVA RAO)
Sr.AFA/M&P
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 27.04.2015
Dy.CMM/Elec
Sub :-Procurement of Low Maintenance Lead Acid Loco battery of 75AH
capacity
exercising of (+) 30% Option Clause on M/s.(i) M/s. Southern
Batteries
Pvt Ltd/Bangalore (ii) M/s. The Bharat Battery Mfg Co Pvt
Ltd/Kolkata
(iii). Mysore thermo electric Pvt Ltd/Bangalore. against
Po.Nos:91298,91297,91296 dt:17.06.14.
Ref :- Dy.CMM/Elecs Note No:31,32of Case file No.PA.25.13.2905.
-oOoThe proposal received in connection with exercising of (+) 30%
Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 12.02.2015) for the above subject item are on higher side
when compared with the rates of the instant purchase orders. Further,
the subsequent tender committee of new tender also recommended to
invoke (+)30% option clause on the above two firms. In view of the
financial advantage involved, finance concurrence is hereby signified for
exercising (+) 30% Option Clause on M/s.Southern Batteries Pvt
Ltd/Bangalore(Pt.II) against PO.No.91298 dt:17.06.14 for a
quantity of 43units , on M/s. Mysore Electric Pvt Ltd/SBC against
PO.No.91296 dt:17.06.14 for a quantity of 99units and on M/s.
The Bharath Battery Mfg Co.Pvt ltd/Kolkata against Po.No.91297
dt:17.06.14 for a quantity of 148Nos with PVC upper sealing pegged
down to rates obtained in the tender opened on 12.02.2015 and with original
terms and conditions with in Delivery Period.

The above concurrence is subject to the following:


1. Obtaining the Sanction of original accepting authority, ie., CMM.

2. Ensuring that no lower rates have been received in terms of para


3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of Dy.CAO/T.
Encl : The concerned file.
(P.V.RAGHAVA RAO)
Sr.AFA/M&P
For
FA&CAO/S&W
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 29.04.2015
Dy.CMM/C&W
Sub :
exercising of

Procurement of UIC type rubber vestibule Assembly.


(+) 30% Option Clause on M/s.Suresh Synth Chem Industries

Pvt
Ltd/Mumbai(pt.II) and on M/s. Basant Rubber Factory
Ltd/Mumbai.
Ref:Dy.CMM/C&Ws Note No:56,57 of Casefile No. PC.30.13.3621.
-oOoThe proposal received in connection with exercising of (+)
30% Option Clause on the above subject item Purchase Orders has
been examined.
It is observed that the rates received in subsequent tender
(ie., opened on 27.03.15 for the above subject item is on higher
side when compared with the rates of the instant purchase orders.
In view of the financial advantage to Railways, finance concurrence
is hereby signified for exercising (+) 30% Option Clause on (i)

M/s.Suresh Synth chem. Industries Pvt Ltd/Mumbai against


Po.No.91428 dt:30.06.14 for a quantity of 23Nos only and as
against M/s. Basant Rubber Factroy Ltd/Mumbai it is advised that
the proposal may be processed after satisfactory performance.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of
para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.
Fixing reasonable delivery schedule for the enhanced
quantities.
4.
Ensuring availability of funds during the current financial
year.
5. Getting the MPOs vetted by Stores Finance section.
6.
Necessary original Indent may be placed on file for vetting
MPOs.
This issues with the approval of Dy.CAO/T.
Encl : The concerned file.

(A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
29.04.2015
Dy.CMM/C&W

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Sub:- Procurement of Thermo Plastic. Exercising of (+)30% option


cause on M/s.Calstar Steel Limited/HWH, PO.No.91602
Dt:21.07.2014.
Ref:- Dy.CMM/C&W Note no.23,24 of case file No.PC.30.13.1039.
***
The proposal submitted in connection with exercising of (+) 30%
Option Clause on the above subject item has been examined and the
following are the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5
Dt:12.03.10, for exercising (+)30% option clause, the performance
of the firm should be satisfactory. It is seen from the case file that
M/s.Calstar Steel Limited/HWH, against Po.NO.91602 dt:21.07.14
has supplied 37%. Hence performance of the firm is to be
improved upon to consider option clause. Latest supply position
may be placed on file.
2. Copy of indent to be placed on file for exercising option clause.
3. Finalized T.C.minutes for the tender opened on 16.04.2015 may be
placed on file to assess rate reasonability.
4. On verification of the case file +30% option clause is available for
PO.No.91602 dt:21.07.14, whereas option clause is proposed for
PO.No. 91682 dt:21.07.14, which is contradictory the same maybe
clarified.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

In continuation to the section note at pre-page, Dy.CMM/c&w


has resubmitted the proposal (Flag-A) in response to this office
observations placed at Flag - B, which may kindly be perused.
Earlier this office has concurred the proposal against M/s.
Prag Industries India Pvt ltd only(F/3/C) and on M/s. Howrah
Forgings Ltd/Kolkata (F/5/C) as against the other two firms
executive has been advised to process the case after satisfactory
performance.
In response executive has resubmitted the proposal duly
submitting the performance of the firms and stated that the
performance of the firms are satisfactory as the firm has supplied
more than 75%of the ordered quantity.
The proposal has been examined and the following are the
observations:
1. As already mentioned at pre page that a new tender was opened
on 05.11.14 in which the L1 Part I tenderer has quoted AIR
Rs.1048.82 per No. The instant POs rate is AIR Rs.972 per
No, similarly, the rates quoted by L1 Part II firm is AIRRs.967.42, whereas the Instant PO rate is AIR- Rs.920.23 per
No. The new tender has been dropped as the rates received are
on higher side and duly recommending to exercise (+)30%
option clause in the instant Purchase Order(L/F-454), as the
quantity to be procured is 35,289 Nos the excess Qty of 27,627
Nos available and 30% option clause at lower rate for 21,609Nos
put together works out to 48,867 Nos representing 13 months
requirements that will be very much sufficient for next CP. Hence
it is proposed not to procure any quantity against the present
tender and recommend to discharge the tender and drop the
procurement action. As such, Stores department is proposing to
exercise (+)30% option clause on the instant Purchase Orders.
As it is financially advantageous to Railways in exercising
(+)30% quantity option clause for a quantity of 21,609 Nos on
the above firms.
2.

It is stated that the performance of the firm is satisfactory.


However, it is observed that M/s.M.G.M. rubber Co/Kolkata has
supplied 11149Nos out of the total ordered quantity of

14867Nos i.e supplied 75% and DP is ahead for the balance


quantity i.e upto 30.06.15. and as against M/s. Basant Rubber
factrory Ltd/Mumbai the firm has supplied 24311Nos out of the
total ordered quantity of 32415Nos i.e supplied 75% and DP is
ahead for the balance quantity.
3. The Delivery Period of the subject PO is available upto
30.06.2015.
4. Necessary Indent is available to cover the proposed option
clause quantity.

The financial implications of the proposed option clause are as


follows:
1

Original Value of the PO.

2
3
4

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the PO after
exercising (+) 30% option clause
Competency of Sanction required

5
6
7
8

Rs.6,90,83,864
.66
72,033 Nos
21,609 Nos
6,483Nos
942 Nos
Rs.8,66,875.5
Rs.7,62,52,216
.16
COS

With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.
In view of the financial advantage and as per the recommendations
of the subsequent tender committee option clause is exercised on
M/s.M.G.M Rubber Co/Kolkata for a quantity of 4460Nos against
Po.No.91808 dt:12.08.14. and on M/s. Basant Rubber FactoryLtd/Mumbai
for a quantity of 9724Nos against Po.NO.92423 dt:27.10.14

Submitted for kind perusal and orders please.


SO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 29.04.2015
Dy.CMM/DSL
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:91684
Dt:30.07.2014
Ref : Your Note No:29 to 31of Case file No. DSL-10-13-3201.
-oOo-

The proposal received in connection with exercising of (+) 30%


Option Clause on the above subject item Purchase Order has been
examined.
It is observed that the rates received in subsequent tender (ie.,
opened on 10.02.2015) for the above subject item are on higher side. The
rate accepted from lowest offer is Rs.2315.25, whereas the instant
Purchase Order rate is Rs.2227.05. In view of the financial advantage and
as recommended by SAG tender committee, and as per the past
performance, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s.G.S.Products, Dehradun for a quantity of
10567 Nos with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para
3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
( A.K.GANE
SHAN )
Sr.AFA/SF
FA&CAO/S&W.

For

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 29.04.2015

Dy.CMM/Elec
Sub:- Procurement of Set of valve regulated lead acid batteriesexercising of (+)30% option cause against (i) M/s.Microtex
Energy Pvt Ltd/SBC,against PO.No.91890 dt:22.08.14
(ii).M/s. Exide Ind Ltd/Kol against PO.No.91889 dt:22.08.14
and (iii) M/s.HBL power systems ltd/Hyb against Po.No.91888
dt:22.08.14
Ref:- Dy.CMM/Elec Note no.27 of case file No.PE.45.14.1021.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. It is once again reiterated that In terms of Para 3.2 of Railway Board letter No:

99/RS(G)/779/5 Dt:12.03.10, option clause should be operated only where


there is a clear demand for additional quantities and benefits accrue to Railways
in terms of existing contractual rates being reasonable/lower than newly
opened tendered rates. Hence, it is advised that the subject PO rate may be
compared with other railway rates for the subject item, if not available in this
railway to assess the rate reasonability.
3. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for
exercising (+)30% option clause, the performance of the firms should be
satisfactory. It is seen from the case file that above mentioned three firms have
not commenced the supplies yet against the said PO. Hence performance of the
firm is to be improved upon to consider option clause.
Encl : The concerned file.

(A.K.GANESHAN)

Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of uninsulated cadmium copper caternary wire 65sq
mm exercisng (+) 30% Option Clause against M/s. Sight sound
electronics India Pvt Ltd/Delhi.
Ref : Dy.CMM/Elecs Note No:32 to 36 of Case file No. PE.46.13.5027.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/Elec, which is placed at Folio-1/C
may kindly be perused.
For procurement of the above subject item three Purchase Order have been
placed on(i) M/s.Sight Sound Electronics (India) Pvt Ltd/Delhi (Part II) (AIRRs.616836.36 PMT and updated price is Rs.487664.86 per No.) with the
acceptance of CMM for a total value of Rs.55,51,527.24.
Now, Stores branch is proposing to exercise (+)30% quantity option clause on
the above three POs on the basis of a Stock ANE/NS indent received from units.
The proposal has been examined and the following are the observations:
1. Stores department stated that a new tender was floated for procurement of
the subject item and was opened on 25.02.2015. It is observed that the rates
received in new tender are on higher side (AIR- 6,76,850.61 per No). As such,
JAG tender committee of the subsequent tender recommended to exercise
(+)30% option clause on LPOs ie., on the above three POs and Dropped the
present tender.
2. It is certified by the stores department that the performance of the firms is
satisfactory. The firm M/s. Sight Sound Electronics India Pvt ltd/Delhi
has supplied 48% of the originally ordered quantity.

3. The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the three POs.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs.55,51,527.24
9Mts
2.7 Mts
Nil
1.539Mts
Rs.9,49,311.15
Rs.65,00,838.39
CMM
20.05.2015

NOTE/2
4. Necessary indent is available in the case file to cover the option clause.
5. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF.
In view of the financial advantage involved, and as per the TC
recommendations of the subsequent tender, if approved we may concur the
proposal on M/s. Sight Sound electronics India Pvt Ltd/Delhi for a quantity of
1.539Mts against Po.NOs.92490,62511,29248 dt:31.10.14.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
04.05.2015

Dt.

Dy.CMM/Elec
Sub : Procurement of uninsulated cadmium copper caternary wire
65sq mm exercisng (+) 30% Option Clause against M/s. Sight
sound electronics India Pvt Ltd/Delhi.
Ref : Dy.CMM/Elecs Note No:32 to 36 of Case file No. PE.46.13.5027.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 25.02.15 for the above subject item is on higher side when compared with
the rates of the instant purchase orders. In view of the financial advantage to
Railways and as per subsequent TC recommendations, finance concurrence is
hereby signified for exercising (+) 30% Option Clause on (i) M/s.Sight Sound
Electronics
(India)
Pvt
Ltd/Delhi(Pt.II)
against
Po.Nos.92490,62511,29248 dt:31.10.14 for a quantity of 1.539Mts
with original terms and conditions with in Delivery Period. The total value of
the PO after exercising +30% option clause is Rs.65,00,838.39/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.

Encl : The concerned file.


(A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Universal type rectifier cum regulating unit . Exercising
of
(+) 30% Option Clause against (i)Stone India Ltd/Kol (ii)Presstech India Pvt
Ltd/Mumbai(iii) P.D.Steels/Mohali.
Ref : Dy.CMM/Elecs Note No:22 to 25 of Case file No. PE.45.14.1030.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause
on the above subject item, received from Dy.CMM/Elec, which is placed at Folio-1/C
may kindly be perused.
For procurement of the above subject item three Purchase Order have been
placed on (i) M/s.Stone India Ltd/Kol Part-I (AIR- Rs.96099.81 per No.)(ii) M/s.
Presstech
India
Pvt
Ltd/Mumbai
Part-I
(AIR
Rs.92,977per
No)&(iii)M/s.P.D.Steels/Mohali Part-II (AIR- Rs.95,100 per No.) with the
acceptance of CMM for a total value of Rs.99,68,385.17 (L/F-N/16).
Now, Stores branch is proposing to exercise (+)30% quantity option clause on
the above three firms on the basis of a Stock indent received from units.
The proposal has been examined and the following are the observations:
1. Stores department stated that a new tender was floated for procurement of
the subject item and was opened on 15.04.2015. It is observed that the rates
received in new tender are on higher side i.e. Part I firm AIR is
Rs.1,04,646.94 per No and Part II firm is Rs.1,09,150perNo, whereas the
instant Po. Rate is Rs. 96099.81per No for Part I source and Rs.95,100/-per
No for Part II source. In view of the financial advantage Stores branch is
proposing to operate (+)30% option clause on LPOs ie., on the above three
POs.
2.

It is certified by the stores department that the performance of the firms is


satisfactory. However, it is noticed that M/s. Stone India Ltd/Kol has supplied
23Nos out of the total ordered quantity of 31Nos i.e supplied 74% and as
against other two firms M/s.Presstech India Pvt Ltd/Mumbai and

M/s.P.D.Steels/Mohali the firms has not commenced the supplies, as such


stores branch will be advised to process the proposal against the above two
firms after satisfactory performance within the delivery period i.e 01.06.15.
3.

The financial implications of the proposed option clause are as follows:

Original Value of the three POs.

2
3
4
5
6
7

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto for M/s. Stone
India

8
9

Rs.99,68,385.17
.
104Nos
31 Nos
Nil
9 Nos
Rs.8,64,898.29
Rs.1,08,33,283.
46
CMM
15.05.2015

NOTE/96
4. Necessary indent is available in the case file to cover the above option
quantity.
5. New tender is not yet finalized as the DP of M/s. Stone India Ltd is expiring on
15.05.2015 and in view of the financial advantage and performance, if
approved we may approve the proposal to exercise option clause on M/s.Stone
India Ltd/Kol Part-I only against Po.No.92223 dt:29.09.14 for a quantity of 9
Nos & against M/s.Presstech India Pvt Ltd/Mumbai and M/s. P.D.Steels/Mohali
executive will be advised to process the case after satisfactory performance.
Further, concurrence is subject to the rates after finalization of new tender is
not below the instant Po rate and duly reducing the option clause quantity in
the subsequent tender.
6. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 11.05.2015

Dy.CMM/C&W
Sub:- Procurement of Adapter Narrow Jaw-exercising of (+)30% option
cause against (i) M/s.Eastern Alloys Pvt Ltd/Rourkela,against
PO.No.92876 dt:09.12.14 (ii).M/s.Gemus Engg Ltd/Kolkata
against PO.No.92877 dt:09.12.14
Ref:- Dy.CMM/C&W Note no.22 to 23 of case file No.PW.38.14.2181.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10,

for exercising (+)30% option clause, the performance of the firms should
be satisfactory. It is seen from the case file that M/s. Eastern Alloys Pvt
Ltd has not commenced the supplies and DP is upto 30.06.2015, as such
after satisfactory performance case file may be processed, M/s.Gemus
Engg Ltd has supplied 5534 Nos out of 13835 Nos . As such to consider
option clause performance of the firm is to be improved upon to consider
option clause.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

In continuation to section notings at prepage, the remarks called for by FA&CAO/S&W


vide Item No. 3 is as under:
It is regretted to mention that while showing the financial implication table, the figures
shown from I.NO.5 to 8 was erroneously copied from the previous notings of the subject
proposal. Now the same is rectified and the financial implication are are as under:

The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8

Original Value of the three POs.

Rs.6,90,83,864.
66 (L/F.N-32)
Original Qty in the POs.
72,033Nos
(+) 30% option quantity
21,609Nos
Qty already utilized under option clause
7525Nos
Now proposed qty under option clause
14,184Nos
Value of the proposed option Qty
Rs.1,35,55,953.
8
Total Value of the POs after exercising (+) 30% Rs.8,98,08,169.
option clause
96
Competency of Sanction required
COS

It will be ensured that here after no such mistakes will be done and utmost care will be
taken while dealing the case files. Error is regretted please.

SSO(A)/SF

Sr.AFA/SF

Dy.CAO/S&W

FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
17.05.2015
Dy.CMM/C&W
Sub:- Procurement of Modified Elastomeric Pads-Exercising of (+)30%
option cause on M/s.M.G,M.Rubbers & on M/s. Basant Rubber
factory.
Ref:- Dy.CMM/C&w Note no. 43 to 59 of case file No.PW.38.13.1145-oOo-

Dt.

The proposal received in connection with exercising of (+) 30% Option


Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 05.11.2014 for the above subject item are on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage to Railways and SAG TC recommendations , finance concurrence is
hereby signified for exercising (+) 30% Option Clause on (i) M/s.M.G.M Rubber
Co/Kolkata for a quantity of 4460Nos against PO.NO. 91808 dt:12.08.14 and
on M/s. Basant Rubber Factory Ltd/Mumbai for a quantity of 9724Nos against
Po.NO.92423 dt:27.10.14 with original terms and conditions with in Delivery
Period. Total value of the PO after exercising option clause is Rs.
8,98,08,169.96.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 19.05.2015

Dy.CMM/Elec
Sub:- Procurement of End frame Non driving and end frame driving.
Ref:- Dy.CMM/Elec Note no.23 of case file No.PA.29.15.5001.
***
The proposal submitted in connection with development order has been examined and
the following are the observations
1. Likely new sources for this item may be explored for the purpose of vendor development
in the present case. It is observed that there are only two Part I and one Part II source
as per F-164. The consuming department should certify the actual requirement with
latest specification if any, so as to avoid unnecessary ordering cost by way of
advertisement.
2. The observation made by Tender accepting authority at N-16,17are very much relevant
in the present case and highly appreciable.
3. However, finance is of the opinion that blanket concurrence by finance as sought in the
proposal can be considered only when there is sufficient proof that their exists
indigenous supplier for this item at lower cost compare to cost of approved sources.
4. In view of the above the proposal needs to be re visited with full justification and in
consultation with technical branch (user department) for better appreciation.
Case file is returned herewith.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 21.05.2015

Dy.CMM/C&W
Sub:- Procurement of rear cover- exercising of (+)30% option cause
against M/s.Rahul Textile Mills/Bikaner against PO. No. 91596
dt:18.07.14
Ref:- Dy.CMM/C&W Note no.30,31of case file No.PC.30.13.1106..lk
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. In terms of Para 3.2 of Railway Board letter No: 99/RS(G)/779/5 Dt:12.03.10,
option clause should be operated only where there is a clear demand for
additional quantities and benefits accrue to Railways in terms of existing
contractual rates being reasonable/lower than newly opened tendered
rates. Hence, finalized TC minutes for the tender opened on 07.04.2015 may be
placed on file to asses the rate reasonability
2. A copy of the indent may be placed on file.
3. Latest supply position may be placed on file.
Encl : The concerned file.

Sr.AFA/SF

(A.K.GANESHAN)

For FA&CAO/S&W

NOTE/1
Sub : Supply of POH kit of self lubricating polyester etc. under (+)
30% Option Clause on M/s.Black Burn & Co Pvt Ltd/Calcutta.
Ref : Dy.CMM/C&Ws Note No:23 to 25 of Case file No.PC-30.13.3583.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item one Purchase Order is
placed on (i)Black Burn & Co Pvt Ltd/Kolkata(AIR Rs.7381.27 per set) with the
acceptance of CMM for a total value of Rs. 62,44,554.42(L/F-N/15) with
(+)30% option clause.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 26.03.2015


for the subject item. The All inclusive rate accepted by the lowest tenderer in
the new tender is Rs.7456.43per set whereas the instant PO rate is
Rs.7381.27 per set. The new tender has been finalized by the JAG tender
committee duly recommending to exercise (+)30% option clause on the
instant Purchase Orders (L/F-243 ante). As such, Stores department is
proposing to exercise (+)30% option clause on the instant Purchase Order. As
there is a rate difference of Rs.75.16 per set, it is financially advantageous
to Railways in exercising (+)30% quantity option clause for a quantity of
254sets on the above firm.

2. The performance of the firm is satisfactory. The firm has supplied 508sets

out of the total ordered quantity of 846sets ie.supplied 60% and Delivery
period is ahead for the balance quantity ie. Upto 30.07.2015
3.

Necessary ANE is placed at F/246.

(iv). The financial implications of the proposed option clause are as follows:

1
2
3
4
5
6
7
8
9

Original Value of the two POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under
O/Clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs. 62,44,554.42
846sets
254 sets
Nil
254 sets
Rs.18,74,842.58
Rs.81,19,397
CMM
30.07.2015

N/2
With the exercise of above option clause, the revised value
will be with in the powers of original accepting authority ie., CMM.
As such, the
proposal
requires
the
concurrence
of
Dy.CAO/S&W.
In view of the financial advantage involved in the proposed
option clause and as per the TC recommendations, if approved, we
may agree +30% option clause on M/s.Black Burn & Co Pvt
Ltd/Kolkata against PO.NO.92533 dt:05.11.2014 for a qunaity of 254
sets.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

DY.CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
21.05.2015
CMM/Elec
Sub:- Placement of development order in regular tender for
procurement of End frame Non driving ad end frame driving-Reg.
Ref:- CMM/Elec Note no.23 of case file No.PA.29.15.5001
-oOo-

Dt.

The proposal received in connection with the above subject has been
examined and finance concurrence is hereby signified on the above subject
tender for including special condition in the tender schedule i.e 15% of net
procurable quantity outside the tender quantity for development order, as
new firm rates should be competitive and lower than approved sources as per
Rly board guidelines Lr.NO.99/RS(G)/709/1/P1 dated 13.01.2015.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL ADVISER

AND

OFFICE OF THE
CHIEF ACCOUNTS OFFICER (S&W),

STORES FINANCE SECTION,


RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01

Dt. 21.05.2015

Dy.CMM/Elec
Sub : Procurement of Universal type rectifier cum regulating unit .
Exercising of (+) 30% Option Clause against (i)Presstech India Pvt
Ltd/Mumbai(ii) P.D.Steels/Mohali.
Ref : Dy.CMM/Elecs Note No:22 to 26 of Case file No. PE.45.14.1030.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for

exercising (+)30% option clause, the performance of the firms should be


satisfactory. It is seen from the case file that M/s.Presstech India Pvt
Ltd/Mumbai and M/s. P.D.Steels/Mohali has not commenced the supplies yet
and certified that general performance is satisfactory.
As per Boards guidelines the performance of the instant PO has to be seen
while exercising 30% option clause. Hence it is advised that as DP is fast
approaching i.e 01.06.2015, it may be confirmed and details furnished as to
whether the firm has offered the material for inspection/dispatched/material
received in the depot and accounted for may be placed on file so that
performance of the firm is assessed and financial benefit is availed in the instant
case.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
Dt. 25-052015
Dy.CMM/C&W
Sub : Supply of POH kit of self lubricating polyester etc. under (+)
30% Option Clause on M/s.Black Burn & Co Pvt Ltd/Calcutta.
Ref : Dy.CMM/C&Ws Note No:23 to 25 of Case file No.PC-30.13.3583.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 26.03.2015) for the above subject item are on higher side when compared
with the rates of the instant purchase order. In view of the financial advantage
and as recommended by subsequent tender committee, finance concurrence
is hereby signified for exercising (+) 30% Option Clause on M/s.Black Burn &
Co Pvt Ltd/Calcutta for a quantity of 254sets
against PO.No. 92533
dt:05.11.2014, with original terms and conditions with in Delivery Period. Total
value of the PO after exercising option clause is Rs. 81,19,397.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 27.05.2015

Dy.CMM/G
Sub:- Procurement of Liquid oxygen for industrial use- acceptance
of lower rate-reg
Ref:- Dy.CMM/Gs Note No:29 to 31 of Case file No.PO-81.13.1415.
-oOoM/s. Ellenbarrie has agreed to supply the balance quantity @ Rs.13.60 per cum
vide F/147 and the same was corrected to Rs.13.50 per Cum, whereas the subsequent
lower rate of the subject item is Rs.13.49 per cum. In view of the above necessary fresh
letter may be taken from the firm as per the new lower rates i.e 13.49 per cum. Further,
as S.V.Clause is available in the PO conditions, while payment on documentary
evidence necessary care will be taken.
In case of delay in taking the consent from M/s. Ellenbarrie industrial gases Ltd,
separate proposal for exercising (-)30% option clause against M/s. Praxair India may be
processed, as the firm has not agreed to supply at lower rate.
File is returned herewith for early necessary action please.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Supply of Thermo plastic Polyster Elastomer(Hytrel) lower washer
under (+) 30% Option Clause on M/s. Calster Steel Ltd/Calcuta against
Po.NO.91602 dt:21.07.14.
Ref : Dy.CMM/C&Ws Note No: 23to 24 of Case file No.PC-30.13.1039.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item Purchase Order was placed
on M/s. Calster Steel Ltd/Calcuta(Pt.I)(AIR
Rs.1001.01per No) with the
acceptance of CMM for a total value of Rs. 68,20,882.14(L/F-N/16) with
(+)30% option clause.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 16.04.2015


for the subject item. The All inclusive rate accepted by the lowest tenderer in
the new tenderer(RDSO Pt.I) is Rs.1018.84per No whereas the instant PO rate

is Rs.1001.01 per no. The new tender has been finalized by the JAG tender
committee duly recommending to exercise (+)30% option clause on the
instant Purchase Orders (L/F-236). As such, Stores department is proposing to
exercise (+)30% option clause on the instant Purchase Order. As there is a
rate difference of Rs.17.83 per No, it is financially advantageous to
Railways in exercising (+)30% quantity option clause for a quantity of
2044Nos(1293Nos-Lgd and 751Nos-Tpty) on the above firm.
2. The performance of the firm is certified as satisfactory. The firms has

supplied 60% of the ordered quantity.


3. Necessary ANE is available in the case to cover the option clause quantity.
4. The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6
7
8
9

Original Value of the two POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs. 68,20,882.14
6814 Nos
2044 Nos
Nil
2044 Nos
Rs.20,46,064.44
Rs.88,66,946.58
CMM
30.05.2015

5. With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the proposed option
clause, if approved, we may agree +30% option clause on M/s. Calster
Steel Ltd/Calcutta(Pt.I) against PO.NO.91602 Dt:21.07.14 for a quanity
of 2044Nos(Lgd-1293Nos, Tpty-751Nos).
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

DY.CAO/S&W

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
29.05.2015

(S&W),

Dt.

Dy.CMMC&W
Sub : Procurement of POH kit for Air brake cylinder.- Exercising of (+) 30%
Option clause- Against M/s.Pew Engineering Pvt Ltd/Howrah.
Ref : Your Note No:18,19,22 of Case file No.PC.30.14.3582.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined and following are the
observations.
The delivery period of M/s.Pew Engineering Pvt Ltd/Howrah has expired on
01.04.2015 and as already advised repeatedly by this office that option clause has
to be exercised within the original/extended delivery period and should be valid on
date. Instead of following the rules, insisting finance to concur the proposal after the
expiry of the DP is not understood. Purchase officer to please note that all proposal
should be sent well in advance with all the required information for obtaining
finance concurrence. So that there is no delay whatsoever to the advantage of
Railways.
Further, since there is financial advantage in invoking the option clause
against the said purchase order, file may be resubmitted duly refixing the delivery
period to concur the proposal.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01

Dt. 29.05.2015

Dy.CMM/C&W
Sub : Procurement of Rear cover for Axle Box Exercising of (+) 30% Option
Clause against M/s. Rahul Textile Mills/Bikaner against Po.No.91596
dt:18.07.14
Ref : Dy.CMM/C&Ws Note No:30,31 of Case file No. PC.30.13.1106.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for

exercising (+)30% option clause, the performance of the firms should be


satisfactory. It is seen from the case file vide F/624, i.e as on 06.05.2015, the
outstanding quantity to supply against the above mentioned purchase order is
8875Nos (i.e the firm has supplied 41% only as on 06.05.2015) whereas vide
F/627 the covered dues are shown as 4875Nos which is contradictory. Hence,
latest supply position from depot may be placed on file to assess the
performance and to consider option clause.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of constant contact polyurethane side bearer pad
assembly exercising of (+) 30% Option Clause against (i). M/s.Prag
Industries India Pvt Ltd/Deharadun against PO.NO.92630 dt:13.11.14
(ii). Aryan Exporters Pvt ltd/Lucknow against PO.No.92631
dt:13.11.14.
Ref : Dy.CMM/C&Ws Note No:37,38,41 of Case file No.PW.38.14.2198.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at folio-1/C may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on (i) M/s.Prag Industries India Pvt ltd/dehradun PartII(AIR- Rs.3987.66 per No.) (ii) M/s.Avadh Rubber(Part-II) (AIRRs.3987.66per No) with the acceptance of COS for a total value of
Rs.1,50,49,428.84 (L/F-N/28) with (+)30% option clause.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 09.04.2015


for the subject item. The All inclusive rate accepted by the lowest tenderer in
the new tender is Rs.4134.38per No whereas the instant PO rate is Rs.3987.66
per No. The new tender has been finalized by the JAG tender committee duly
recommending to exercise (+)30% option clause on the instant Purchase
Orders (L/F-272 ante). As such, Stores department is proposing to exercise
(+)30% option clause on the instant Purchase Orders. As there is a rate
difference of Rs.146.72 per No, it is financially advantageous to Railways in
exercising (+)30% quantity option clause for a quantity of 3774Nos on the
above firms.
2. The performance of the firm is certified as satisfactory. The firm M/s. Prag

Industries India Pvt ltd has supplied 792Nos out of the total ordered quantity

of 1320Nos and DP is ahead for the balance quantity i.e upto 31.07.2015,
supplied 60% and as against M/s. Aryan Exporters P ltd has supplied 2262Nos
out of the total ordered quantity of 2454Nos and DP is ahead for the balance
quantity i.e upto 31.07.2015, supplied- 92%.
3.

Necessary ANE is placed at F/280.

4.

The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the two POs.


Original Qty in the instant two
POs.
(+) 30% option quantity
Qty already utilized under
O/Clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

Rs.1,50,49,428.84
3,774 Nos
1,132Nos
Nil
1,132 Nos
Rs.45,14,031.12
Rs.1,95,63,459.96
CMM
31.07.2015

With the exercise of above option clause, the revised value


will be with in the powers of original accepting authority ie., CMM.
As such, the
proposal
requires
the
concurrence
of
FA&CAO/S&W.
In view of the financial advantage involved in the proposed
option clause and as per the subsequent TC recommendations, if
approved, we may agree +30% option clause on M/s.Prag Industries
India Pvt Ltd/Dehradun against PO.No 92630 dt:13.11.14 for a
quantity of 396Nos on Rayanpadu depot and on M/s. Aryan
Exporters Pvt Ltd/Lucknow against PO.No.92631 dt:13.11.14 for a
quantity of 736 Nos(72Nos for MFT and 664Nos for Rayanapadu
depot).

Submitted for kind perusal and orders please.


SSO(A)/SF
Sr.AFA/SF

DY.CAO/S&W

FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
31.05.2015

Dt.

Dy.CMM/C&W
Sub : Supply of Thermo Plastic Polyster Elastomer (Hytrel) Lower washer
Exercising of (+) 30% Option Clause.on M/s.Claster Steel
Ltd/Calcutta against Po.No. 91602 dt:21.07.14.
Ref : Your Note No:23 to 24 of Case file No. PC/30.13.1039.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
16.04.2015) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.1018.84 per No(RDSO Pt.I), whereas the instant Purchase Order

rate is Rs.1001.01 per No. In view of the financial advantage and as recommended
by JAG tender committee, finance concurrence is hereby signified for exercising (+)
30% Option Clause on M/s.Claster Steel Ltd/Kolkata, against Po.No. 91602
dt:21.07.14 for a quantity of 2044Nos with original terms and conditions with in
Delivery Period. The Total value of the Po after exercising option clause is Rs.
88,66,946.58.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2.

Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3. Fixing reasonable delivery schedule for the enhanced quantity.


4.

Ensuring availability of funds during the current financial year.

5. Getting the MPOs vetted by Stores Finance section.


6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 08.06.2014

Dy.CMM/Elec
Sub : Procurement of Universal type rectifier cum regulating unit .
Exercising of (+) 30% Option Clause against (i)Presstech India Pvt
Ltd/Mumbai(ii) P.D.Steels/Mohali.
Ref : Dy.CMM/Elecs Note No:22 to 31 of Case file No. PE.45.14.1030.
***

The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. It is observed that as per information made available in the file the firm has not
commenced the supplies yet. As such the complete details of supplies made
against Po.NO.92224 dt.29.09.14, Po.No.92225 dt:29.09.14 to be furnished to
guage the performance.
2. As delivery period is fast approaching i.e 30.06.2015 as such it may be
confirmed and details furnished as to whether the firm has offered the material
for inspection/dispatched/material received in the depot and accounted for.
The file is returned herewith.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

SECUNDERABAD
No.ASF/Q 01
08.06.2015

Dt.

Dy.CMM/C&W
Sub : Procurement of constant contact polyurethane side bearer pad
assembly exercising of (+) 30% Option Clause against (i). M/s.Prag
Industries India Pvt Ltd/Deharadun against PO.NO.92630 dt:13.11.14
(ii). Aryan Exporters Pvt ltd/Lucknow against PO.No.92631
dt:13.11.14.
Ref : Dy.CMM/C&Ws Note No:37,38,41 of Case file No.PW.38.14.2198.
-oOo.
The proposal received in connection with exercising (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
09.04.2015) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.4134.38 per No, whereas the instant Purchase Order rate is
Rs.3987.66 per No. In view of the financial advantage and as recommended by JAG
tender committee, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Prag Industries India Pvt Ltd/Dehradun against Po.NO.
92630 dt:13.11.14 for a quantity of 396 Nos on Rayanpadu depot and on
M/s. Aryan Exporters Pvt Ltd/Lucknow against Po.NO. 92631 dt:13.11.14
for a quantity of 736Nos(72Nos for MFT and 664Nos for Rayanapadu
depot) with original terms and conditions with in Delivery Period. The Total value of
the Po after exercising option clause is Rs. 1,95,63,459.96.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
NOTE/1
Sub : Supply of Rear cover for Axle Box to Pl.No.30020451 under (+) 30%
Option Clause on M/s. Rahul Textile Mills/Bikaner against
Po.NO.91596 dt:18.07.14.
Ref : Dy.CMM/C&Ws Note No: 30 to 32 of Case file No.PC-30.13.1106.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item a Purchase Order was placed
on M/s. Rahul Textile Mills/Bikaner(AIR Rs.1048per No) with the acceptance of
CMM for a total value of Rs. 1,53,55,412.52(L/F-N/19) with (+)30% option
clause.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 07.04.2015


for the subject item. The All inclusive rate accepted by the lowest tenderer in
the new tenderer is Rs.1155per No whereas the instant PO rate is Rs.1048per
no. The new tender has been finalized by the JAG tender committee duly
recommending to exercise (+)30% option clause on the instant Purchase
Order (L/F-630 ante). As such, Stores department is proposing to exercise
(+)30% option clause on the instant Purchase Order. As there is a rate
difference of Rs.107 per No, it is financially advantageous to Railways in
exercising (+)30% quantity option clause for a quantity of 4534Nos on the
above firm.
2. The performance of the firm is certified as satisfactory. The firms has
supplied 10238Nos out of the total ordered quantity of 15113Nos i.e 67% of
the ordered quantity.
3. Necessary ANE is available in the case to cover the option clause quantity.
4. The financial implications of the proposed option clause are as follows:
1
2
3
4

Original Value of the two POs.


Original Qty in the instant PO.
(+) 30% option quantity
Qty already utilized under option

Rs. 1,58,38,424
15,113 Nos
4,534 Nos
Nil

5
6
7
8
9

clause
Now proposed qty under option
4,534 Nos
clause
Value of the proposed option Qty Rs.47,51,632
Total Value of the POs after
Rs.2,05,90,056
exercising (+) 30% option clause
Competency of Sanction required
CMM
Delivery period available upto
28.07.2015

[
5. With the exercise of above option clause, the revised value will exceed
the powers of original accepting authority( CMM), as such the proposal
requires the sanction of COS/AGM as the case may be( as the present
COS is CMM/M (original accepting authority). As such, the proposal
requires the concurrence of FA&CAO/S&W.
In view of the financial advantage involved in the proposed option
clause and as per subsequent TC recommendations, if approved, we may
agree +30% option clause on M/s.Rahul Textile Mills/Bikaner against
PO.NO.91596 Dt:18.07.14 for a quanity of 4534Nos.
Submitted for kind perusal and orders please.

SSO(A)/SF
Sr.AFA/SF

DY.CAO/S&W

FA&CAO/S&W

NOTE/1
Sub : Supply of POH kit for 203mm Air Brake cylinder etc. under (+) 30%
Option Clause on M/s. Pew Engineering Pvt Ltd/Howrah against
Po.NO.92471 dt:31.10.14.
Ref : Dy.CMM/C&Ws Note No: 18,19,22,25 of Case file No.PC-30.14.3582.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item a Purchase Order was placed
on M/s.Pew Engineering Pvt Ltd/Howrah(AIR
Rs.283.5per set) with the
acceptance of Dy.CMM for a total value of Rs. 14,99,148(L/F-N/14) with
(+)30% option clause.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 19.03.2015


for the subject item. The All inclusive rate accepted by the lowest Pt.I tenderer
in the new tenderer is Rs.292.95per set, whereas the instant PO rate is
Rs.283.5per set. The new tender has been finalized by the JAG tender
committee duly recommending to exercise (+)30% option clause on the
instant Purchase Order (L/F-204 ante). As such, Stores department is
proposing to exercise (+)30% option clause on the instant Purchase Order. As
there is a rate difference of Rs.9.09 per set, it is financially advantageous

to Railways in exercising (+)30% quantity option clause for a quantity of 1586


sets on the above firm.
2. The performance of the firm is certified as satisfactory. The firms has
supplied 5132 sets out of the total ordered quantity of 5288sets i.e supplied
97% of the ordered quantity.
3. Necessary ANE is available in the case to cover the option clause quantity.
4. The financial implications of the proposed option clause are as follows:
1
2
3
4

Original Value of the two POs.


Rs. 14,99,148
Original Qty in the instant PO.
5288 sets
(+) 30% option quantity
1586sets
Qty already utilized under option
Nil
clause
5
Now proposed qty under option
1586sets
clause
6
Value of the proposed option Qty Rs.4,49,631
7
Total Value of the POs after
Rs.19,48,779
exercising (+) 30% option clause
8
Competency of Sanction required
Dy.CMM
9
Delivery period refixed upto
06.08.2015
With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie., Dy.CMM. As such,
the proposal requires the concurrence of Sr.AFA/SF.
In view of the financial advantage involved in the proposed option
clause and as per subsequent TC recommendations, if approved, we may
agree +30% option clause on M/s.Pew Engineering Pvt Ltd/Howrah
against PO.NO.92471Dt:31.10.2014 for a quanity of 1586Nos(650 sets to
LGD and 936sets to TPTY).
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 10.06.2015

Dy.CMM/C&W
Sub:- Procurement of Slack adjuster- exercising of (+)30% option
clause against(i). M/s.Stone India Ltd/Kolkata (ii). M/s. General
Stores and Engg Co Pvt Ltd/Kolkata against PO. Nos.
92165,92166 dt:23.09.14 respectively
Ref:- Dy.CMM/C&W Note no.15-16 of case file No.PW.38.14.1587.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. It is observed that as per information made available in the file, M/s. Stone
India Ltd has not commenced the supplies yet. As such, it is advised that after
satisfactory performance against the above purchase order option clause may be
processed.
2. Finalized TC minutes for the tender opened on 27.05.2015 may be placed on file
to asses the rate reasonability.
2. A copy of the indent may be placed on file.
3. Latest supply position of both the firms may be placed on file.
Encl : The concerned file.

For FA&CAO/S&W

(A.K.GANESHAN)
Sr.AFA/SF

FINANCIAL

No.ASF/Q 01
2013

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 21-10-

Dy.CMM/C&W
Sub : Supply of POH kit for 203mm Air Brake cylinder etc. under (+) 30%
Option Clause on M/s. Pew Engineering Pvt Ltd/Howrah against
Po.NO.92471 dt:31.10.14.
Ref : Dy.CMM/C&Ws Note No: 18,19,22,25 of Case file No.PC-30.14.3582.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
19.03.2015) for the above subject item is on higher side when compared with the
rates of the instant purchase order. In view of the financial advantage and as
recommended by subsequent tender committee, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s.PEW Engg.Pvt Ltd/Howrah for
a quantity of 1586sets against Po.NO.92471 dt:31.10.14, with original terms and
conditions with in Delivery Period. The total value of the after after exercising 30%
option clause is Rs.19,48,779
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., Dy.CMM
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of LCD Monitor based dumb terminals with key boards
under (+) 30% Option Clause on M/s.Breeze Innovations Pvt
Ltd/Chennai against Po.NO.20019 dt:11.03.2015.
Ref : Dy.CMM/S&Ts Note No: 17,18,19 of Case file No.PS-59.14.5067.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/S&T, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item a Purchase Order was placed
on M/s.Breeze Innovations Pvt Ltd/Chennai(AIR Rs.18,100per No) with the
acceptance of CMM/E for a total value of Rs. 1,42,08,500(L/F-N/11) with
(+)30% option clause.
The proposal has been examined and the following are the observations:
1. It is stated that No tender has been opened on other Railways or in this
Railway for the subject item. Further it is stated that the earlier PO for supply
of 176Nos of LCD monitor based dump terminal with key Board was cancelled,
as such executive is now request to invoke 30% option clause on the present
supplier and complete the supply of cancelled PO as they are required for
ensuring Godavari Puskaram as stand by, the DD for the instant PO is due to
expire on 16.06.2015 and it is also mentioned that the rate received in the
instant tender is lower i.e AIR Rs.18,100 per No) compared to the rate of
cancelled PO rate placed at an AIR Rs.24,799. As such, Stores department is
proposing to exercise (+)30% option clause on the instant Purchase Order for
a quantity of 176Nos on the above firm as a special case.
2. The performance of the firm is certified as satisfactory. The firms has
supplied the entire ordered quantity of 785Nos.
3. Necessary Non stock indent is available in the case to cover the option
clause quantity.

4. The financial implications of the proposed option clause are as follows:


1
Original Value of the two POs.
Rs. 1,42,08,500
2
Original Qty in the instant PO.
785 Nos
3
(+) 30% option quantity
236 Nos
4
Qty already utilized under option
Nil
clause
5
Now proposed qty under option
176Nos
clause
6
Value of the proposed option Qty Rs.31,85,600
7
Total Value of the POs after
Rs.1,73,94,100
exercising (+) 30% option clause
8
Competency of Sanction required
CMM
9
Delivery period refixed upto
16.06.2015
With the exercise of above option clause, the revised value will be
with in the powers of original accepting authority ie.,CMM. As such, the
proposal requires the concurrence of Dy.CAO/S&W.
As the LCD Monitor based dump terminal with key boards are required
for ensuring Godavari Puskaram as Stand By, as a special case if
approved +30% option clause on M/s.Breze Innovations Pvt Ltd/Chennai
against PO.NO.20019 dt:11.03.15 for a quanity of 176Nos will be agreed
or otherwise duly reducing the 176Nos in the next procurement.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
16.06.2015

Dt.

Dy.CMM/S&T
Sub : Procurement of LCD Monitor based dumb terminals with key boards
under (+) 30% Option Clause on M/s.Breeze Innovations Pvt
Ltd/Chennai against Po.NO.20019 dt:11.03.2015.
Ref : Dy.CMM/S&Ts Note No: 17,18,19 of Case file No.PS-59.14.5067.
.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Order has been examined.

PO for supply of 176Nos of LCD monitor based dump terminal with key
Board was cancelled with levying General damages, now the same is
processed by operating 30% option clause on the instant PO in order to
complete the supplies of cancelled PO as they are required for ensuring
Godavari Puskaram as stand by, as the rate received in the instant tender is
lower i.e( AIR Rs.18,100 per No) as compared to the rate of cancelled PO rate
placed at an AIR Rs.24,799. As such, Finance concurrence is hereby signified
for exercising (+) 30% Option Clause on M/s.Breze Innovations Pvt
Ltd/Chennai against PO.NO.20019 dt:11.03.15 for a quanity of 176Nos subject
to reducing the 176Nos in the next procurement and with original terms and
conditions with in Delivery Period. The total value of the PO after exercising
30% option clause is Rs.1,73,94,100.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W
OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
16.06.2015
Sub : Procurement of LCD Monitor based dumb terminals with key boards
under (+) 30% Option Clause on M/s.Breeze Innovations Pvt
Ltd/Chennai against Po.NO.20019 dt:11.03.2015.
Ref : Dy.CMM/S&Ts Note No: 17,18,19 of Case file No.PS-59.14.5067.
.

Dt.

-oOoThe proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. The original justification for releasing Po in favour of YNC systems may be furnished.
2. The Indent does not talk of Godavari Pushkaram and pre dates the present tender.
Further why was action for closure not taken when Po in favour of M/s. Breeze
innovation
was
finalized
and
quantity
of
176
Nos not added to present PO.
3. It may be confirmed whether the estimate of Godavari Pushkaram contain this item of
dumb terminal, as the indent containing 176Nos does not carry any reference to
Godavari Pushkaram
4. It may confirmed whether Funds are available for 2015-16.
5. The rate reasonability w.r.t present market trend may also be furnished.
As DP is expiring on 16.06.2015, early action may be taken and resubmit the
case at the earliest with full details.

Encl : The concerned file.


(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

SECUNDERABAD
No.ASF/Q 01
16.06.2015

Dt.

Dy.CMM/C&W
Sub : Supply of Rear cover for Axle Box to Pl.No.30020451 under (+) 30%
Option Clause on M/s. Rahul Textile Mills/Bikaner against
Po.NO.91596 dt:18.07.14.
Ref : Dy.CMM/C&Ws Note No: 30 to 32 of Case file No.PC-30.13.1106.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
07.04.2015) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.1155 per No, whereas the instant Purchase Order rate is Rs.1048
per No. In view of the financial advantage and as per the subsequent TC
recommendation, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Rahul Textile Mills/Bikaner against Po.NO.91596
dt:18.07.14 for a quantity of 4534Nos with original terms and conditions with in
Delivery Period. The Total value of the Po after exercising option clause is Rs.
2,05,90,056.
The above concurrence is subject to the following:
1. Obtaining the Sanction of revised value accepting authority, ie., COS/AGM as
the case may be( as the present COS is CMM/M(original accepting
authority).
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of FA&CAO/S&W.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Exercising of (-)30% option clause on P.O.No.92328
Dt:27.09.2012
(Procurement of Electrodes IRS Class A2 size 4.00 X
450mm..)
Ref : Dy.CMM/Gs Note No:23/24 of Case file No. PO.76.11.1017.
-oOoA proposal seeking finance concurrence for operating (-) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Flag A may kindly be perused.
For procurement of the above subject item two Purchase Orders have
been placed on M/s. Asian Arc Electrodes Pvt ltd and on M/s.Seth
Electrodes Pvt Ltd (AIR- Rs.9.35 per mtr) with the acceptance of CMM for
a total value of Rs.1,12,21,720.40 (L/F-N/19).
Now, Stores branch is proposing to exercise (-)30% quantity option
clause on the above firm as the rates received in subsequent tender are on
lower side.
The proposal has been examined and the following are the observations:
4.0
Stores department stated that a new tender was floated for
procurement of the subject item and the tender was opened on 22.05.2013. It
is observed that the L1 tenderer has quoted Rs.8.32 per metre, which is
lower than the subject PO rate. As such, Stores department vide their letter
placed at L/F-266 advised the firm
M/s. Asian Arc Electrodes Pvt ltd,
Noida to accept the lower rate or (-)30% option clause will be operated. As
the firm did not accepted the lower rate, Stores department is proposing to
exercise (-)30% option clause on the above firm. As such, the originally
ordered quantity will be reduced for a quantity of 2,16,033 mtrs.
5.0
With regards to another firm in the same tender, it is understood that
the firm has supplied the entire quantity in the month of March 2013 itself. As
such, there is no chance to invoke (-)30% option clause on this firm.
6.0

The financial implications of the proposed option clause are as follows:

1
2
3
4
5
6
7
8

Original Value of the PO.

Original Qty in the PO.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed reduced qty under option clause
Revised quantity in the PO
Value of the proposed option Qty
Total Value of the PO after exercising (+) 30%
option clause
9
Competency of Sanction required
10 Delivery period available upto

Rs.67,29,437.30
.
7,20,111 mtrs
2,16,033 mtrs
Nil
2,16,033 mtrs
5,04,078 mtrs
Rs.20,19,908.55
Rs.47,09,528.75
CMM
30-11-2013

NOTE/2
With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Dy.CAO/S&W.
The proposal has the Administrative approval of CMM (Flag A) for exercising
(-)30%option clause.
In view of the lower rates received in subsequent tender, if approved we may
concur the proposal to exercise (-)30% option clause.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub :- Procurement of Liquid Oxygen for Industrial use, Exercising of
(+)/(-)30% option clause-reg.
Ref :- Dy.CMM/Gs Note No. 29 to 31 of Case file No:PO.81.13.1415.
-oOoA proposal seeking finance concurrence for operating (-)/(+) 30% option
clause on the above subject item, received from Dy.CMM/G, which is placed at
Flag A may kindly be perused.
For procurement of the above subject item two Purchase Orders have been
placed on(i).M/s. Praxair India Pvt Ltd/Bangalore and on
(ii). M/s.
Ellenbarrie Industrial Gases Ltd/Kolkata (AIR- Rs.13.75 per Cumt) with the
acceptance of CMM for a total value of Rs.98,31,607.49(L/F-N/18).
Now, Stores branch is proposing to exercise (-)30% option clause on M/s.
Praxair India Pvt Ltd/Bangalore for a quantity of 1,39,430.07Cumt (as the
firm has not accepted lower rate) and (+)30% option clause on M/s. Ellenbarrie
Industrial Gases Ltd/Kolkata for a quantity of 75,077.73cumt( as the firm has
accepter lower rate).
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-)/(+) 30% quantity option clause on the above


subject P.Os, as the rate accepted in the tender opened recently ie on
17.07.2014, is Rs.13.49 per Mts (L/F-150), whereas the instant PO rate is
Rs.13.75 per Mt (L/F-N-17).

(ii)

It is observed from the case file that the firm was advised to accept the lower
rate of Rs.13.49 per mts(Basic.RS.9.74, ED extra @12.36%+ VAT extra @5% +
Freight -@2/-) per cumt with S.V. Clause applicable), but the firm M/s. Praxair
India Pvt Ltd/Bangalore refused to accept the offer vide F/151 of L/F). As such,
it is proposed to cancel 1,39,430.07Cumt duly exercising (-)30%
option clause on the firm. However, M/s. Ellenbarrie Industrial Gases

Ltd/Kolkata has accepted the offer at AIR Rs.13.50per cumt vide F/158 of
L/F i.e ((Basic.RS.9.74, ED extra @12.5%(present rate)+ VAT extra
@5% + Freight -@2/- per cumt). As such, it is proposed to exercise +30%
on the firm i.e.75,077.73 Cumt.
(iii)

The firm M/s. Praxair India Pvt Ltd has still to supply 3,40,027.41cumt and DP
is available upto 31.12.2015 (-30% quantity is 1,39,430.07cumt).

(iv)

M/s. Ellenbarrie Industrial Gases Ltd/Kolkata has supplied 1,89,473.91 against


the ordered quantity of 2,50,259.1cumt i.e supplied 75% and DP is ahead for
the balance unsupplied quantity i.e upto 31.07.2015 (+30% quantity is
75077.73cumt).

(v)

The proposal to exercise (-)30% and (+)30% option clause has the approval of
CMM (Folio-1).
N/2
As the original tender was finalized with JAG tender committee and accepted
by CMM, the above proposal requires the concurrence of Dy.CAO/S&W for
exercising (-)/(+)30% option clause.

(vi)

In view of the above, if approved we may concur the proposal to exercise


(i).(-)30% option clause on M/s. Praxair India Pvt Ltd/Bangalore for a
quantity
of
1,39,430.07Cumt
against
Po.No.90507
dt:13.03.2014(since firm
has not accepted lower rate).
(ii).To exercise +30% option clause against M/s. Ellenbarrie Industrial
Gases Ltd/Kolkata
for a quantity of i.e.75,077.73 Cumt against
Po.No.90275 dt:06.02.14(since the firm accepted lower rate)
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

NOTE/85
Sub :- Procurement of Oil machinery/General purpose machinery oil
servoline-100, Exercising of (-)30% option clause on M/s. Indian Oil
Corporation Ltd/SC against P.O.No:91930Dt:27.08.14.
Ref :- Dy.CMM/Gs Note No. 33 of Case file No:PO.80.14.1005.
-oOoA proposal seeking finance concurrence for operating (-) 30% option clause on
the above subject item, received from Dy.CMM/G, is placed at Folio-1/C which may
kindly be perused.
Against Part I source One Purchase Order has been placed for procurement of
the above subject item on M/s.Indian Oil Corporation Ltd/SC(L/F-N.21) for a
quantity of 1,05,210LTRS subsequently as per TC recommendations vide N/26 to 28
the final quantity ordered on Part I firm was reduced to 89460Ltrs at a total value of
Rs.82,03,482 with the acceptance of COS(L/F-N/22,28).

Now, it is proposed to exercise (-) 30% option clause on the subject P.O No.
91930 Dt: 27.08.14 for a quantity of 26838LTRS(26,880Ltrs in terms of 210Ltr barrels)
as the subsequent tender rates has come down.
The proposal has been examined and the following are the observations:
(i)

It is proposed to invoke (-) 30% quantity option clause on the above subject
P.O, as per the subsequent TC recommendations, as the rate accepted by Part
I source in the tender opened recently ie on 21.04.2015, AIR is Rs.64.04per
Lr(L/F-228), whereas the instant PO Part-I firm AIR rate is Rs.91.70per litre
(L/F-N.21).

(ii)

It is observed from the case file that the firm was advised to accept the lower
rate of Rs.64.04 per litre vide F/221, but till date no reply has been received
from the firm. Since Delivery period of the subject Po is expiring on
30.06.2015 and as per the Tender committee proceedings at F/225 to 238
wherein COS as accepted to operated -30% option clause i.e 26880Ltrs vide
Para 3.3.1(F/236) .As such, it is proposed to cancel 26,880ltrs duly exercising
(-)30% option clause on the firm.

(iii)

The firm M/s.Indian Oil Corporation ltd/SC has still to supply 62,580ltrs and DP
is available upto 30.06.2015 (-30% quantity is 26,880ltrs).

(iv)

As the original tender was finalized with SAG tender committee and accepted
by COS, the above proposal requires the concurrence of FA&CAO/S&W for
exercising (-)30% option clause.

In view of the above, if approved we may concur the proposal to exercise


(-)30% option clause on M/s. Indian Oil corporation Ltd/SC against Po.No.91930
dt:27.08.14 for a quantity of 26,880Ltrs.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

In continuation to the section notings at pre-page, Dy.CMM/Elec has


resubmitted the proposal(L/F.N.31), in response to this office observations made
vide (L/F- F.254) which may kindly be perused.
Earlier this office has concurred the proposal against M/s.Stone India
Ltd/Kol only(F/3/C) and as against the other two firms executive has been advised
to process the case after satisfactory performance.
In response executive has resubmitted the proposal duly submitting the
performance of one firm M/s. Presstech India Pvt Ltd.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on subsequent

tender. It is stated that a new tender was opened on 15.04.2015 for the subject
item. The All inclusive rate accepted by the lowest Pt.I tenderer in the new
tenderer is Rs.1,03,477.50per No, whereas the instant PO rate is Rs.96099.81per
No. The new tender has been finalized duly recommending to exercise (+)30%
option clause on the instant Purchase Order (L/F-264ante). As such, Stores
department is proposing to exercise (+)30% option clause on the instant
Purchase Orders. As there is a rate difference of Rs.7377.9 per No, it is
financially advantageous to Railways in exercising (+)30% quantity option
clause on M/s. Presstech India Pvt Ltd for a quantity of 14Nos.
2.

3.

It is certified by the stores department that the performance of the firms is


satisfactory. It is stated by the firm that material was offered for inspection on
22.05.2015 and the material was dispatched on 06.06.15.
The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6
7
8
9

Original Value of the three POs.+30% qty


of 9Nos
Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available upto for M/s.
Stone India

Rs.1,08,33,283.
46
104Nos
31 Nos
9Nos
14 Nos
Rs.13,45,397.34
Rs.1,21,78,680.
8
CMM
30.06.2015

4. Necessary indent is available in the case file to cover the above option quantity.

5. In view of the financial advantage and as DP for M/s.Presstech India Pvt ltd is
expiring on 30.06.2015, if approved we may concur the proposal to exercise
option clause on M/s.Presstech India Pvt Ltd only against Po.No.92224
dt:29.09.14 for a quantity of 14Nos & against M/s. P.D.Steels/Mohali executive will
be advised to process the case after satisfactory performance.
6. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires
the concurrence of Dy.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

NOTE/1
Sub : Procurement of pin for Bolster spring suspension under (+) 30%
Option Clause against M/s.Annapurna Engg Works/Howrah against
Po.No.90342 dt:14.02.2014.
Ref : Dy.CMM/C&Ws Note No:17 to 19 of Case file No. PC.30.13.1190.
-oOoA proposal seeking finance concurrence for operating (+) 30% option clause on
the above subject item, received from Dy.CMM/C&W, which is placed at Folio-1/C may
kindly be perused.
For procurement of the above subject item one Purchase Order placed on M/s.
Annapurna Engg Works/Howrah(AIR Rs.141.88 per No) with the acceptance of
Dy.CMM/C&W for a total value of Rs.23,29,102.08 (L/F-N/11).
Now, it is proposed to exercise (+)30% quantity option clause on the above firms
as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1.

Stores department has stated that a new tender was opened on 31.10.2014 for
the subject item. The All inclusive rate quoted by the lowest tenderer in the new
tender is Rs.147.60per No. As the rates of instant PO is Rs.141.88 per No,lower
than the subsequent tender. TC recommended to drop the present tender duly
recommending to exercise (+)30% option clause in the instant Purchase
Order(L/F-403). In view of the above the proposal is being initiated to exercise
option clause on the above firms for a quantity of 2,451Nos against M/s.
Annapurna Engg works

2. It is certified by the stores department that the performance of the firm is


satisfactory. The firm has supplied 16295nos out of the total ordered quantity
of 16416Nos i.e supplied 99%.

3. The financial implications of the proposed option clause are as follows:


1

Original Value of the PO.

Original Qty in the POs.

3
4

(+) 30% option quantity


Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty

5
6
7
8

Rs.23,29,102.
08

Total Value of the PO after exercising


(+) 30% option clause
Competency of Sanction required
Delivery period upto

16,416Nos
4,925 Nos
Nil
2,451 Nos
Rs.3,47,747.8
8
Rs.26,76,849.
96
Dy.CMM
03.08.2015

NOTE/2
12.0
Necessary ANE is available in the case file to cover the proposed option
quantity.
13.0 With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie.,Dy.CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF.
14.0 In view of the financial advantage involved, if approved we may concur the
proposal on M/s. Annapurna Engg Works/Howrah for a quantity of 4,925Nos
against Po.No.90342 dt:14.02.2014.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
19.06.2015
Dy.CMM/C&W
Sub : Procurement of Pin for Bolster spring suspension - Exercising of (+)
30% Option Clause on M/s. Annapurna Engg Works/Howrah against

Dt.

P.O.No:90342 Dt:14.02.2014.
Ref : Dy.CMM/C&Ws Note No:17 to 19 of Case file No.PC.30.13.1190.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
31.10.2014) for the above subject item is on higher side. The rate quoted by the lowest
offer is Rs.147.60, whereas the instant Purchase Order rate is Rs.141.88 per No. In view
of the financial advantage and as the subsequent tender has been dropped by the
tender committee duly recommending to exercising the (+)30% option clause, finance
concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.Annapurna Engg Works/Howrah for a quantity of 2,451Nos only against
Po.No.90342 dt:14.02.2014 with original terms and conditions with in Delivery
Period. The Total value of the Po after exercising +30% option clause is Rs.
26,76,849.96/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., Dy.CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4.

Ensuring availability of funds during the current financial year.

5. Getting the MPOs vetted by Stores Finance section.


6. Necessary original Indent may be placed on file for vetting MPOs.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
23.06.2015

Dt.

Dy.CMM/Elec
Sub : Coverage of Set of valve regulated lead acid battery of 1100 Ah
capacity under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No: 23 to 28 of Case file No.PE.45.14.1021.
-oOoThe proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders have been examined and the following are the
observations.
1. In order to exercise option clause Board Lr.No.99/RS(G)/779/5 Dt:12.03.10 has to

be complied with viz. Rate reasonability, Performance, demand exists, validity.


2. It is mentioned that no tender is opened for the past one year for the subject item,
as such it is requested to certify ra te reasonability w.r.t present market trend may be
furnished.

3. As the performance of the firm is Nil and DP is ahead i.e upto 31.07.2015, it is
not clear as to how invoking option clause will improve stock position,
requirement of item on urgency. As such, the stores department instead of
invoking option clause should prevail on supplier to supply material and meet the
requirements.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
2015

Dt. 26-06-

Dy.CMM/G
Sub :- Procurement of Oil machinery/General purpose machinery oil
servoline-100, Exercising of (-)30% option clause on M/s. Indian Oil
Corporation Ltd/SC against P.O.No:91930Dt:27.08.14.
Ref :- Dy.CMM/Gs Note No. 33 of Case file No:PO.80.14.1005.
-oOoThe proposal received in connection with exercising of (-) 30% Option Clause on
the above subject item Purchase Order has been examined.
As the firm has not accepted for the lower rate received in subsequently opened
tender on 21.04.2015 for the subject item, finance concurrence is hereby signified for
exercising (-) 30% Option Clause on M/s. Indian Oil Corporation Ltd/SC against P.O No.
91930 Dt: 27.08.14 for a quantity of 26,880Ltrs.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Getting the MPOs vetted by Stores Finance section.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
29.06.2015

Dt.

Dy.CMM/G
Sub :- Procurement of Liquid Oxygen for Industrial use, Exercising of
(+)/(-)30% option clause-reg.
Ref :- Dy.CMM/Gs Note No. 29 to 31 of Case file No:PO.81.13.1415.
-oOoThe proposal received in connection with exercising (+)/(-) 30% Option Clause on
the above subject item Purchase Orders have been examined.
It is observed that the rates received in subsequent tender (ie., opened on
17.07.2014) for the above subject item is on lower side. The rate accepted from lowest
offer is Rs.13.49 per mts, whereas the instant Purchase Order rate is Rs.13.75 per Mts.
In view of the lower rate received, finance concurrence is hereby signified for
exercising (-) 30% Option Clause on M/s.Praxair India Pvt Ltd/Bangalore for a
quantity of 1,39,430.07Cumt against Po.No.90507 dt:13.03.2014(since the
firm has not accepted lower rate) and to exercise +30% option clause against M/s.
Ellenbarrie Industrial Gases Ltd/Kolkata for a quantity of 75,077.73Cumt
against PO.NO.90275 dt:06.02.2014(since the firm has accepted lower rate)
with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM/G.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.

6. Necessary original Indent may be placed on file for vetting MPOs for exercising
+30% option clause.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 29.06.2015

Dy.CMM/C&W
Sub:- Procurement of Adapter Narrow Jaw-exercising of (+)30% option
cause against (i) M/s.Eastern Alloys Pvt Ltd/Rourkela,against
PO.No.92876 dt:09.12.14 (ii).M/s.Gemus Engg Ltd/Kolkata
against PO.No.92877 dt:09.12.14
Ref:- Dy.CMM/C&W Note no.22 to 23 of case file No.PW.38.14.2181.
***
Finance stand is reiterated and it is once again advised that in terms of
Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for exercising (+)30% option
clause, the performance of the firm should be satisfactory against the POs
proposed for exercising option clause.
It is observed that M/s. Eastern Alloys Pvt Ltd/Rourkela has not supplied the
material yet and Delivery period of the firm is available upto 30.06.2015, as such it
may confirmed and details furnished as to whether the firm has offered the
material for inspection/dispatched/material received in the depot and accounted
for so as assess the performance and avail option clause.

M/s. Gemus engg Ltd/Kolkata has supplied 5534Nos out of the total ordered
quantity of 13835Nos i.e supplied 40% only. Since the DP of the said Purchase
orders is available upto 30.07.2015 and as the firm (M/s. Gemus Engg Ltd)has
supplied only 40% of the ordered quantity, instead of processing the proposal time
and again for exercising option clause, it is advised to insist the firm to improve the
supplies so as to meet the requirements. After satisfactory performance only
against the said POs the case may be processed for concurrence.
Funds certification for the current year may be certified.
Encl: Concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01
29.06.2015

Dt.

Dy.CMM/Elec
Sub : Procurement of Universal type rectifier cum regulating unit . Exercising
of (+) 30% Option Clause against (i)Stone India Ltd/Kol (ii)Presstech India Pvt
Ltd/Mumbai(iii) P.D.Steels/Mohali.
Ref : Dy.CMM/Elecs Note No:22 to 25 of Case file No. PE.45.14.1030.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause on
the above subject item Purchase Orders have been examined.
It is observed that the rates received in subsequent tender (ie., opened on
15.04.2015) for the above subject item is on higher side. The All inclusive rate
accepted by the lowest Pt.I tenderer in the new tenderer is Rs.1,03,477.50per No,
whereas the instant PO rate is Rs.96099.81per No. In view of the financial advantage

and as per the subsequent TC recommendation, finance concurrence is hereby


signified for exercising (+) 30% Option Clause on M/s.Presstech India Pvt
Ltd/Mumbai against Po.No.92224 dt:29.09.14 for a quantity of 14Nos with
original terms and conditions with in Delivery Period. The Total value of the Po after
exercising option clause is Rs. Rs.1,21,78,680.8. Further, as against M/s.
P.D.Steels/Mohali it is advised to process the case after satisfactory performance.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs for exercising
+30% option clause.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 06.07.2015

Dy.CMM/C&W
Sub:- Procurement of Air Brake Hose coupling- Exercising of
(+)30% option cause-reg.
Ref:- Dy.CMM/C&W Note no.26,27 of case file No.PW.38.14.1544.
***

The proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders have been examined and the following are the
observations.

1. As DP is far ahead i.e upto 31.10.2015, Finalized T.C.minutes for the tender opend
on 16.06.2015 may be placed on file to assess rate reasonability.
2. Copy of indent to be placed on file for exercising option clause.
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

N/1
Sub : Procurement of UIC type rubber vestibule Assembly. exercising of
(+) 30% Option Clause on M/s. Basant Rubber Factory Ltd/Mumbai.
Ref:Dy.CMM/C&Ws Note No:56 to 61 of Casefile No. PC.30.13.3621.

-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed at
Folio- 1/C may kindly be perused.
For procurement of the above subject item, tender opened on 10.09.14
three Purchase orders have been placed on (i).M/s. Basant Rubber Factory
Ltd/Mumbai(Pt.II)(AIR Rs.32384.96 (ii).M/s.Ameenji Rubber Pvt ltd/SC(Pt.I)(AIR36950/- per No and (iii). M/s.Kiran rubber Products/Pune(Pt.I) (AIR-Rs.36950/-per
No) with the acceptance of CMM/M for a total value of Rs.1,27,47,911.44(L/FN/44).
Now COS is proposing 30% option clause against part II firms (i)M/s.
Basant Rubber Factory Ltd/Mumbai. Earlier this office has concurred +30% option
clause on M/s. Suresh Synth Chem Inds Pvt Ltd/Mumbai vide Lr.No. ASF/Q01
dated 29.04.2015 placed at F/2, and as regards to M/s. Basant Rubber factory
Ltd/Mumbai it is advised to process the case after satisfactory performance.
The proposal has been examined and the following are the observations:
1. It is stated that a new tender was opened on 27.03.2015 in which the lowest
Part II firm has quoted Rs.33,512.06per Number(AIR), whereas the subject Part II
POs rate is Rs.32,384.96. Stores department is proposing to exercise (+)30%
option clause on the above firms as it is financially advantageous to Railways in
exercising quantity option clause.
2. Performance of the firm is certified as satisfactory. However, it is observed that
firm has supplied 80Nos out of the total order quantity(F/681), further,
Dy.CMM/C&W has certified that the firm has supplied the entire ordered quantity
of 89Nos.
3. Necessary Demand is available in the case file to cover the proposed option
clause.
4. CMM approval was obtained to operate +30% option clause.
5. Delivery period was extended upto 14.08.2015 to exercise option clause.

6. The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the PO

Rs.
1,27,47,911.44
Original Qty in the POs against Part
89Nos
II
(+) 30% option quantity
27Nos
Qty already utilized under option
Nil
clause
Now proposed qty under option
27 Nos
clause
Value of the proposed option Qty
Rs.8,74,393.92
Total Value of the POs after Rs.1,36,22,305.
exercising (+) 30% option clause
36
Competency of Sanction required
CMM
Delivery period available upto
14.08.2015

With the exercise of above option clause, the revised value will be with in
the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the present option clause, if
approved we may concur the proposal on M/s. Basant Rubber Factory
Ltd/Mumbai(Pt.II) against Po.No.90308 dt:26.02.2015 for a quantity of 27Nos.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

Dy.CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 13.07.2015

Dy.CMM/C&W
Sub:- Procurement of Set of valve regulated lead acid batteriesexercising of (+)30% option cause against (i) M/s.Microtex
Energy Pvt Ltd/SBC,against PO.No.91890 dt:22.08.14
(ii).M/s. Exide Ind Ltd/Kol against PO.No.91889 dt:22.08.14
and (iii) M/s.HBL power systems ltd/Hyb against Po.No.91888
dt:22.08.14
Ref:- Dy.CMM/Elec Note no.25 to 29 of case file No.PE.45.14.1021.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders have been examined and the following are the
observations.
1. As per Dy.CEE/TPTY non stock indent on the subject item a proposal was

processed under option clause for a quantity of 6 sets, the option clause available
for the subject item are Part I source(AIR Rs.1111527.66 per set) and Part II
source(AIR Rs.1101581.74). In order to avail financial advantage it is advised to
operate 30% option clause on Part II source at the first instance than Part I source,
as there is a rate difference is Rs.9945 per set(quantity available under Part II firm
is 6 Nos).

2.

In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for


exercising (+)30% option clause, the performance of the firms against the subject
POs should be satisfactory. It is seen from the case file that above mentioned three
firms have not commenced the supplies yet against the said PO. Hence performance
of the firm is to be improved upon to consider option clause.

3. It is certified that the rate is reasonable with reference to present market trend, necessary
documentary proof may be placed on file to assess the rate reasoanability.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

Sub :- Procurement of UNDERGROUND Railway jelly filled 6 quadd telecom


cable for signaling and telecom installation, extension of DP-Reg.
Ref :- Dy.CMM/S&Ts Note No. 83 of Case file No:PS.56.11.5151.
-oOoA proposal seeking finance concurrence for extension of delivery period on
the above subject item, received from Dy.CMM/S&T, which is placed at Flag A
may kindly be perused.
For procurement of the above subject item four Purchase Orders have been
placed on(i).M/s.Delton Cables Ltd/Delhi (ii). M/s. Vindhya Telelinks Ltd/Rewa
(iii). M/s.Golkonda Engg Enterprises Ltd/SC (iv). M/s. Birla Ericsson Optical
Ltd/Rewa
with
the
acceptance
of
AGM
for
a
total
value
of
Rs.13,96,33,995.51(L/F-N/40).
Now,COS has processed the case for extension of Delivery period against
PO.NO.20064 dt:16.05.2012 placed on M/s.Birla Ericsson optical ltd for supply of
2.5Kms cable. The original Delivery period of the above said PO is 30.10.2012.
The firm could not supply the material within the DP due to break down
vehicle during transit(F/1094), therefore request to refix the delivery schedule upto
10.11.2012 without imposition of LD in order to release the payment.

Dy.CMM/S&T has certified that no tender has been opened within the above
delivery period. Further stated that the delay in supply is seven days and
recommended with LD and with DC.
Further, stated that the reason for delay in submitting the proposal is that
the firm has asked DP extension on 19.06.2015(F/1094) and there is no delay from
COS office. The firm has realized during their audit as per the oral discussion with
the firm that the payment has not been received against this small quantity order.
The firm has supplied 2.502Km quad cable. It is confirmed by COS that as per the
details available with them no payment was made against the said PO. Firm
confirmed that they will not ask for any compensation for the delayed payment.
As per SOP part D Sl.No. 5 Note 1(b) Finance concurrence is required for
extension/Waival of delivery period where AGM/GM are tender accepting authority.
Hence the proposal requires the concurrence of FA&CAO/S&W.
In view of the above, if approved we may agree for the proposed extension of
delivery period from 30.10.2012 to 08.11.2012 with L.D. and with DC.
Submitted for order please.

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 22.07.2015

Dy.CMM/S&T
Sub :- Procurement of UNDERGROUND Railway jelly filled 6 quadd telecom
cable for signaling and telecom installation, extension of DP-Reg.
Ref :- Dy.CMM/S&Ts Note No. 83 of Case file No:PS.56.11.5151.
-oOoThe proposal submitted in connection with Delivery period extension on the above
subject item Purchase Order have been examined and the following are the observations.
1. The proposal at N/83, Extension of delivery period requires the views of CMM,COS

before issue of concurrence is examined by Finance.


2. The reasons for not processing the case may be furnished, as there is a gap of 3
years from the last dated of DP of 10.11.2012.
3. The details of supplies made and payments made against the said Purchase order
may be furnished.
4. It may be confirmed from the firm that at a later date the supplier should not seek
compensation for delayed payments.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL
STORES FINANCE

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
SECTION,RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
29.04.2015

Dt.

Dy.CMM/C&W
Sub : Procurement of UIC type rubber vestibule Assembly. exercising of
(+) 30% Option Clause on M/s.Basant Rubber Factory
Ltd/Mumbai(Pt.II), against Po.No.90308 dt:26.02.2015.
Ref: Dy.CMM/C&Ws Note No:60,61 of Casefile No. PC.30.13.3621.
-oOoThe proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
27.03.15 for the above subject item is on higher side when compared with the
rates of the instant purchase orders. In view of the financial advantage to
Railways, finance concurrence is hereby signified for exercising (+) 30% Option
Clause on (i) M/s.Basant Rubber Factory Ltd/Mumbai(Pt.II) against
Po.No.90308 dt:26.02.2015 for a quantity of 27Nos with original terms and
conditions with in Delivery Period. The Total value of the Po after exercising
option clause is Rs.1,36,22,305.36.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

Note/1

Sub :- Procurement of UNDERGROUND Railway jelly filled 6 quadd cable for


telecom cable for signaling and telecom installation, extension of DP.
Ref :- Dy.CMM/S&Ts Note No. 57,58 of Case file No:PS.56.14.1187.
-oOoA proposal seeking finance concurrence for extension of delivery period on
the above subject item, received from Dy.CMM/S&T, which is placed at Flag A
may kindly be perused.
For procurement of the above subject item four Purchase Orders have been
placed, against Part I firms (i) M/s.Manoj Cables Ltd/Delhi
(ii).M/s.
Vindhya Telelinks Ltd/Rewa and on Part II fims on (iii).M/s.Incom Wires and
cables ltd/Delhi (iv). M/s. Himalaya Communciations Ltd./Delhi with the
acceptance of AGM for a total value of Rs.11,64,39,958.08(L/F-N/42).
Now,COS has processed the case for extension of Delivery period on M/s.
Vindhya Telelinks Ltd/Rewa, against PO.NO. 54013 Dt:12.02.2015 for supply of
38Kms cable as per the request given by the firm. The original Delivery period of
the above said PO is 22.06.2015(F/476).
The firm could not supply the material within the DP due to delay in
issuance of inspection certificate from RDSO (F/599), therefore request to refix the
delivery schedule upto 27.06.2015 without imposition of LD.
Dy.CMM/S&T has certified that no PO is placed subsequently at lower rate.
Further, New tender was opened on 09.06.2015 wherein Part I source has quoted
an AIR of Rs.2,36,209.38 whereas the updated AIR Rs.2,27,066.31(lower than the
present tender price).Option clause was not exercised in this case. As such we may
advise the same while giving DP extension.

CMM/E has approved the proposal for extension of Delivery period upto
27.06.2015 with Full LD and and Denial clause(L/F.N-58).

As per SOP part D Sl.No. 5 Note 1(b) Finance concurrence is required for
extension/Waival of delivery period where AGM/GM are tender accepting authority.
Hence the proposal requires the concurrence of FA&CAO/S&W.
In view of the above, if approved we may agree for the proposed extension of
delivery period from 22.06.2015 to 27.06.2015 with FULL L.D. and with DC.
Submitted for order please.

SSO(A)/SF

Sr.AFA/SF

NOTE/1
Sub : Procurement of Resin Impregnated pleated filter paper
M/s. Clark Part No. HF-PS9 as per RDSO drg No. SKDP-3909
- Exercising of (+) 30% Option Clause.P.O.No:92579 Dt:07.11.14.
Ref :Dy.CMM/DSLs Note No:29,30 of Case file No. DSL.10.14.2985.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/DSL, which is placed at
Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase Order has been
placed on M/s. G.S.Products, Dehradun at an all inclusive rate of Rs.1102.50
per number and at a total value of Rs.1,12,17,937.50 with the acceptance of
CMM/M (L/F-N/24).
Now, it is proposed to exercise (+)30% quantity option clause on the above
firm as the demand is available for the subject item Part No.HF-PS9 as per Drg
No. SKDP.3909.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
29.04.2015 for the subject item. The All inclusive rate accepted in the new
tender is Rs.1157.10 each (AIR)(L/F.99ante). As the rates of instant PO is lower
than the subsequent tender and financially beneficial to Railways, JAG tender

committee has recommended to invoke (+)30% option clause (L/F-103ante)


on the instant PO for a total quantity of 3052 Nos.
2. It is certified by the stores department that the performance of the firm is
satisfactory. However, it is observed from Stock position slip (L/F-107) that
the firm has supplied 6614 Nos Out of ordered quantity of 10175 Nos, i.e
supplied 65%, for the balance quantity DP is ahead upto 30.09.2015.
3. The financial implications of the proposed option clause are as follows:
1
2
3
4
5
6
7
8

Original Value of the PO.


Original Qty in the POs.
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the PO after
exercising (+) 30% option clause
Competency of Sanction required

Rs.1,12,17,937.50.
10,175 Nos
3052 Nos
Nil
3052 Nos
Rs.33,64,830
Rs.1,45,82,767.5
CMM

NOTE/2
4. Necessary ANE is available
quantity.

in the case file to cover the proposed option

5. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the proposed option clause
and as per subsequent TC recommendations, if approved, we may agree
+30%
option
clause
on
M/s.G.S.Products/Dehradun
against
PO.NO.92579Dt:07.11.14 for a quanity of 3052Nos.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

Dy.CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 04.08.2015

Dy.CMM/C&W
Sub:- Procurement of Slack adjuster- exercising of (+)30% option
clause against(i). M/s.Stone India Ltd/Kolkata (ii). M/s. General
Stores and Engg Co Pvt Ltd/Kolkata against PO. Nos.

92165,92166 dt:23.09.14 respectively


Ref:- Dy.CMM/C&W Note no.15-16 of case file No.PW.38.14.1587.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Orders have been examined and the following are the
observations.
1. It is observed that as per information made available in the file, the performance of
the firms is Nil and 49% respectively and as DP is ahead i.e upto 31.08.2015. Hence,
after satisfactory performance the case file may be resubmitted for operation of
+30% option clause.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF

For FA&CAO/S&W

In continuation to the section note at pre-page, Dy.CMM/S&T has


resubmitted the proposal (F-4/C) in response to this office observations placed at
F-3/C, which may kindly be perused.
It is stated that the reason for delay in submitting the proposal is that the
firm has not asked for DP extension and on the firms request on
19.06.2015(F/1094) the proposal was processed and there is no delay in processing
for DP extension from COS office. The firm has realized during their audit as per
the oral discussion with the firm that the payment has not been received against
this small quantity order. The firm has supplied 2.502Km quad cable. It is
confirmed by COS that as per the details available with them no payment was made
against the said PO. Firm confirmed that they will not ask for any compensation for
the delayed payment vide their letter placed at F/1118.

COS has approved the proposal for extension of Delivery period upto
27.06.2015 with Full LD and and Denial clause(L/F.N-N-85).
As per SOP part D Sl.No. 5 Note 1(b) Finance concurrence is required for
extension/Waival of delivery period where AGM/GM are tender accepting authority.
Hence the proposal requires the concurrence of FA&CAO/S&W.
In view of the above, if approved we may agree for the proposed extension of
delivery period from 30.10.2012 to 08.11.2012 with L.D. and with DC.
Submitted for order please.

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
05.08.2015

Dt.

Dy.CMM/DSL
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:92579 Dt:07.11.2014.
Ref : Your Note No:29,30 of Case file No. DSL.10.14.2985.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
29.04.2015) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.1157.10, whereas the instant Purchase Order rate is Rs.1102.50. In
view of the financial advantage and as recommended by JAG tender committee,
finance concurrence is hereby signified for exercising (+) 30% Option Clause on
M/s.G.S.Products, Dehradun for a quantity of 3052 Nos against Po.No. 92579
dt:07.11.14 with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3.

Fixing reasonable delivery schedule for the enhanced quantity.

4. Ensuring availability of funds during the current financial year.


5. Getting the MPOs vetted by Stores Finance section.
6.

Necessary original Indent may be placed on file for vetting MPOs.


This issues with the approval of Dy.CAO/S&W.

Encl : The concerned file.


( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/101
Sub : Coverage of Set of 120 Ah VRLA Batteris capacity 6V, 120 Ah
under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:30 to 34 of Case file No.PE.45.12.1396.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed at
Folio-125/C may kindly be perused.
For procurement of the above subject item four Purchase Orders have been
placed on (i) M/s.Microtex Energy Pvt Ltd/Bangalore (Part-II)(AIRRs.1,25,834.32 per set) (ii) M/s.Exide Industries Ltd/Kolkata (Part-II) (AIRRs. 1,25,834.32 per set), (iii) M/s.Amara Raja Batteries Ltd/Tirupati (PartI) (AIR- Rs. 1,28,477.92 per set) & (iv) M/s.HBL Power Systems
Ltd/Hyderabad (Part-I) with the acceptance of COS for a total value of
Rs.3,86,02,061.84 (L/F-N/22) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option clause
on the above four firms on the basis of the recommendations of subsequent
tender committee.
The proposal has been examined and the following are the observations:
7.0
Earlier, the proposal was returned with some observations, as the
MPOs were submitted to this office directly without obtaining finance
concurrence. In terms of Railway Board letter No:99/RS(G)/779/5
Dt:12.03.2010, finance concurrence is required for exercising (+) 30%
option clause. When the proposal was returned by this office,(Folio125,124/C), CMM commented that (Folio-123/C) the views expressed
by finance are against the spirit of checks to be made while
exercising option clause. It is nothing but duplication & redundant
activity. However, the stores department has resubmitted the proposal
duly submitting the requisite information.
In subsequent tender committee proceedings, the accepting
authority ie., COS has accepted the tender committee recommendations
(Para 7.0 (L/F-209)), wherein exercising of (+)30% option clause on Last
Purchase orders was not mentioned. It was discussed at Para 3.2.1 to
exercise option clause on LPOs, but not mentioned in the recommendations
at Para 7.0. Further, to exercise option clause, the performance of the firms
should be satisfactory and Delivery Period should also available, these
aspects were not discussed in TC minutes.

The spirit of issuing the Boards letter is perhaps to ensure invoking


option clause duly ensuring economic purchase and adopting all inventory
management methods. Further, the time lack between option available and
exercising the same is in most of the cases for apart. In order to judge the
parameters, such as supply position, demand last but not least rate
analysis is of paramount importance. Hence finance concurrence for
invoking option clause is neither redundant nor duplication of work as
opined by CMM/Elec.

NOTE/1
If Purchase Officer still feels that finance concurrence is not necessary
and is duplication of work for exercising option clause, we may advise to
approach Railway Board for necessary amendments for invoking option
clause.
8.0
It is proposed to exercise (+)30% quantity option clause on the
above four firms, as the rates received in subsequent tender are on
higher side. It is stated that a new tender was opened on 22.07.2013 in
which the lowest Part-I firm quoted Rs.1,28,577.92 per set (L/F-208)
and lowest Part-II firm quoted Rs.1,25,834.32 per set, whereas the
subject POs rates are Rs.1,28,477.92 per set and Rs.1,25,834.32
respectively. As such, the subsequent tender committee has
recommended to exercise (+)30% quantity option clause on the above
four firms (L/F-213) as the rates of the subject POs are cheaper for Part-I
& same for Part -II.
9.0
It is stated that the performance of the above four firms is
satisfactory as the above four firms have supplied the entire material
with in D.P.
10.0
A photo copy of ANE is available in the case file (L/F-218) for
covering the above option qty. It is stated that the original copy is
placed in the subsequent tender case file which is under scrutiny for
vetting of Draft Purchase Orders by this office.
11.0
The proposal has the Administrative approval of CMM (Folio123/C) for exercising option clause.
12.0
The financial implications of the proposed option clause are as
follows:
1

Original Value of the four POs. (L/F-N/22)

2
3
4
5
6

Original Qty in the 4 POs.


(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty

Total Value of the POs after exercising (+) 30%


option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.3,86,02,061.
84
302 sets
90 sets
Nil
90 sets
Rs.1,15,04,863.
60
Rs.5,01,06,915.
44
COS
31.03.2014

7.0

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the
proposal requires the concurrence of FA&CAO/S&W.

In view of the above, if approved we may concur the proposal to exercise


(+)30% quantity option clause for a quantity of 90 sets.
Submitted please.
Sr.AFA/SF
Dy.CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 06.08.2015

Dy.CMM/S&T

Sub :- Procurement of UNDERGROUND Railway jelly filled 6 quadd telecom


cable for signaling and telecom installation, extension of DP-Reg.
Ref :- Dy.CMM/S&Ts Note No. 83 of Case file No:PS.56.11.5151.
-oOoThe proposal submitted in connection with Delivery period extension on the
above subject item Purchase Order have been examined and the following are the
observations.
1. The proposal at N/83, Extension of delivery period requires the views of

CMM,COS before issue of concurrence is examined by Finance.


5. The reasons for not processing the case may be furnished, as there is a gap of 3
years from the last dated of DP of 10.11.2012.

6. The details of supplies made and payments made against the said Purchase

order may be furnished.


7. It may be confirmed from the firm that at a later date the supplier should not
seek compensation for delayed payments.
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 06.08.2015

Dy.CMM/Elec
Sub:- Procurement of Set of valve regulated lead acid batteries-

exercising of (+)30% option cause against (i) M/s.Microtex


Energy Pvt Ltd/SBC,against PO.No.91890 dt:22.08.14
(ii).M/s. Exide Ind Ltd/Kol against PO.No.91889 dt:22.08.14
and (iii) M/s.HBL power systems ltd/Hyb against Po.No.91888
dt:22.08.14
Ref:- Dy.CMM/Elec Note no.25 to 29 of case file No.PE.45.14.1021.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
It is stated vide N/27,29 that no tender was opened for the subject item and the rate is
certified as reasonable with reference to market trend. However, it is seen that for the subject
item a new tender was opened on 30.06.2015, wherein, the AIR rate of part I is lower than the
instant PO rate as such TC recommended to ask the part I firms to accept the lower rate
otherwise -30% option clause has to be operated and as against M/s.microtex (part II source
as per list valid upto 31.12.14 and has become part I source as per RDSO list valid from
01.01.15) as there are no part II sources in the new tender by exercising +30% option clause
on partII source for 06sets will be advantages and recommended to exercise option clause for a
quantity of 6sets against the existing order.
In view of the above, a fresh proposal may be processed as per the instructions of
Tender committee (tender opened on 30.06.2015).
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 10.08.2015

Dy.CMM/S&T

Sub :- Procurement of UNDERGROUND Railway jelly filled 6 quadd telecom


cable for signaling and telecom installation, extension of DP-Reg.
Ref :- Dy.CMM/S&Ts Note No. 83 of Case file No:PS.56.11.5151.
-oOoThe proposal submitted in connection with Delivery period extension on the
above subject item Purchase Order have been examined and the following are the
observations.
1. Whether there is any time limit for processing belated claims may be furnished.

2.

Further, contract clauses and limitation period if any for processing belated
claims may be placed on file with documentary evidence.
How the material was received without the prior extension of delivery period may be
clarified.
This issues with the approval of FA&CAO/S&W.

Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

In continuation to the section notings at pre-page, Dy.CMM/Elec has


resubmitted the proposal(L/F.N.33), in response to this office observations
made vide (L/F- F.254) which may kindly be perused.
Earlier this office has concurred the proposal against M/s.Stone India
Ltd/Kol (F/3/C) and on M/s. presstech India Pvt Ltd/Mumbai(F/5/C) and as
against M.s. P.D. Steels/Mohali, executive has been advised to process the
case after satisfactory performance.
In response executive has resubmitted the proposal duly submitting the
performance of M/s. P.D. Steels/Mohali placed at L/F.F-290).
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received on

subsequent tender. It is stated that a new tender was opened on 15.04.2015


for the subject item. The All inclusive rate accepted by the lowest Pt.I tenderer
in the new tenderer is Rs.1,03,477.50per No, whereas the instant PO rate is
Rs.95,100per No. The new tender has been finalized duly recommending to
exercise (+)30% option clause on the instant Purchase Order (L/F-264ante). As
such, Stores department is proposing to exercise (+)30% option clause on the
instant Purchase Orders. As there is a rate difference of Rs.8377.5 per No, it is
financially advantageous to Railways in exercising (+)30% quantity option
clause on M/s. P.D.Steels/Mohali for a quantity of 8Nos.
2.

3.

It is certified by the stores department that the performance of the firms is


satisfactory. The firm has supplied the entire ordered quantity of 26nos on
29.07.15 and the same is under accountal.
The financial implications of the proposed option clause are as follows:
1
2

Original Value of the three POs.+30% qty


of 9+14=23Nos
Original Qty in the POs.

Rs.1,21,78,680.
8
104Nos

3
4
5
6
7
8
9

(+) 30% option quantity


Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+)
30% option clause
Competency of Sanction required
Delivery period available

31 Nos
23Nos
8 Nos
Rs.7,60,800
Rs.1,29,39,480.
8
CMM
14.08.2015

4. Necessary indent is available in the case file to cover the above option
quantity.

5. In view of the financial advantage and as per the TC recommendations, if


approved we may concur the proposal to exercise option clause on
M/s.P.D.Steels/Mohali against Po.No.92225 dt:29.09.14 for a quantity of 8Nos.
Delivery period of the above PO is expiring on 14.08.2015.
6. With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
Submitted for kind perusal and orders please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W( on leave)
Dy.CAO/T

In continuation to the section note at pre-page, FA&CAO/S&W remarks,


the following are the remarks submitted by Dy.CMM/S&T placed at Flag - B,
which may kindly be perused.
1. It is stated that as per limitation act 1963, the time limit for processing
belated proposals is 3 years time.
2. The delay is due to transit delay. Hence the material has come after due
date. Further, firm vide their letter at F/1094 mentioned that they had
dispatched the cable as soon as the testing of cable by RDSO was
completed on 23.10.2012 but could be delivered to the consignee on
08.11.2012 after expiry of delivery schedule due to break down of
vehicle during transit.
In view of the above, if approved we may agree for the proposed extension
of delivery period from 30.10.2012 to 08.11.2012 with full L.D. and with D.C.
Submitted please

SSO(A)/SF

Sr.AFA/SF

Dy.CAO/S&W(on leave)
Dy.CAO/T

FA&CAO/S&W

FINANCIAL

No.ASF/Q 01
13.08.2015

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/Elec
Sub : Procurement of Universal type rectifier cum regulating unit . Exercising
of (+) 30% Option Clause against P.D.Steels/Mohali.
Ref : Dy.CMM/Elecs Note No:22 to 33 of Case file No. PE.45.14.1030.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause on
the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
15.04.2015) for the above subject item is on higher side. The All inclusive rate
accepted by the lowest Pt.I tenderer in the new tenderer is Rs.1,03,477.50per No,
whereas the instant PO rate is Rs.95,100per No. In view of the financial advantage
and as per the subsequent TC recommendation, finance concurrence is hereby
signified for exercising (+) 30% Option Clause on M/s.P.D.Steels/Mohali against
Po.No.92225 dt:29.09.14 for a quantity of 8Nos with original terms and
conditions with in Delivery Period. The Total value of the Po after exercising option
clause is Rs. Rs.1,29,39,480.8.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs for exercising
+30% option clause.
This issues with the approval of Dy.CAO/T.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

N/1
Sub : Procurement of 200ah Low Maintenance Lead Acid stationar secondary

cell in dry and uncharged exercising of (+) 30% Option Clause on


(i)M/s.Southern Battery Pvt Ltd/Bangalore (ii). Lead Acid battery co
Pvt Ltd/Kolkata.
Ref:Dy.CMM/S&Ts Note No:26-29 of Casefile No. PS.56.14.5031.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/S&T, which is placed
at Folio- 1/C may kindly be perused.
For procurement of the above subject item, two Purchase orders have
been placed on (i).M/s.Southern Battery Pvt Ltd/Bangalore(Pt.I)(AIR
Rs.4308.92 per No- updated rate is Rs.4278.64 (ii).M/s.Lead Acid battery Co
Pvt Ltd/Kol(Pt.I)(AIR-4308.92per No updated rate is Rs. 4278.64 per No. with
the acceptance of CMM/E for a total value of Rs.25,37,620.31(L/F-N/20).
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firms as the rates received in subsequent new tender are
on higher side.
The proposal has been examined and the following are the observations:
1. It is stated that a new tender was opened on 03.07.2015 in which the
lowest technically suitable Part-I firm quoted AIR ofRs.4316.28 per No,
whereas the subject POs AIR rate is Rs.4308.92 per No and updated AIR
rate is Rs. 4278.64 per NO. The new tender is not yet finalized. However, as
the Delivery Period is expiring on 17.08.2015, Stores department is
proposing to exercise (+)30% option clause on the above two firms.
2. It is stated that the firms have completed supplies and performance of the
above firms are satisfactory.
3.

Necessary Demand is available in the case file to cover the proposed


option clause.

4. Delivery period is upto 17.08.2015 to exercise option clause.

The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the PO


Original Qty in the POs
(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the POs after
exercising (+) 30% option clause
Competency of Sanction required
Delivery period available upto

25,37,620.31
585 Nos
176Nos
Nil
176 Nos
Rs.7,58,370.22
Rs.32,95,990.5
3
CMM
17.08.2015

With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Sr.AFA/SF
In view of the financial advantage involved in the present option clause
and as the Delivery period of the subject POs are expiring on 17.08.2015, if
approved we may concur the proposal on M/s. Lead Acid battery Co Pvt
Ltd/Kol
for
a
quantity
of
27,22,22
i.e
71Nos
against
PO.No.s23028,36010,49057 of 06.05.15 respectively and on M/s.
Southern Batteries Pvt Ltd/SBC for a quantity of 41,32,32 i.e 105Nos
against PO.Nos.23029,36011,49058 dt:06.05.15 respectively. i.e for
a total quantity of 176Nos(71+105nos). duly reducing the +30% option
clause quantity of 176Nos in the subsequent tender and as the new tender
has not yet finalized and as DP is expiring on 17.08.2015, executive will be
advised that concurrence is subject to the rates after finalization of new
tender is not below the instant Po rate.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

No.ASF/Q 01
14.08.2015

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/S&T

Sub : Procurement of 200ah Low Maintenance Lead Acid stationar secondary


cell in dry and uncharged exercising of (+) 30% Option Clause on
(i)M/s.Southern Battery Pvt Ltd/Bangalore (ii). Lead Acid battery co
Pvt Ltd/Kolkata.
Ref:Dy.CMM/S&Ts Note No:26-29 of Casefile No. PS.56.14.5031.
-oOoThe proposal received in connection with exercising (+) 30% Option Clause on the
above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
03.07.2015) for the above subject item is on higher side. The rate obtained from lowest Part
I firm offer is Rs.4316.28per No for battery, whereas the instant Purchase Order updated
rate part I firm is Rs.4308.92 per No for battery. In view of the financial advantage and as
DP is expiring on 17.08.2015, finance concurrence is hereby signified for exercising (+) 30%
Option Clause on M/s.Lead Acid Battery Co Pvt Ltd/Kolkata against
PO.NOs.23028,36010,49057 dt:06.05.15 for a quantity of 27+22+22=71nos and
on M/s. Southern Battery Pvt Ltd/Bangalore against Po.No.23029,36011,49058
dt:06.05.15 for a quantity of 41+32+32=105sets i.e for a total quantity of
71+105=176nos, duly reducing the total 30% option clause quantity of

176Nos in the subsequent tender and as the new tender has not yet
finalized and DP of the subject POs are expiring on 17.08.2015, it is
advised that concurrence is subject to the rates after finalization of new
tender is not below the instant Po rate and with original terms and conditions with
in Delivery Period.The total value after exercising +30% option clause is Rs. 32,95,990.53/-.
The above concurrence is subject to the following:

1. Obtaining the Sanction of original accepting authority, ie., CMM.


2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5
6

Getting the MPOs vetted by Stores Finance section.

Necessary original Indent may be placed on file for vetting MPOs for exercising
+30% option clause.

Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
NOTE/1
Sub : Procurement of PVC insulated armoured unscreened, underground
Railway signaling cable copper conductor, size 24 core * 1.5sq.mm
under (+) 30% Option Clause on M/s.Tirupati Plastomatics Pvt
Ltd/Jaipur and M/s. Kanhha Cables Pvt ltd/Jaipur
Ref : CMM/Es Note No: 35,36,37 of Case file No.PS.56.14.5046.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from CMM/E, which is placed at
Folio-1/C may kindly be perused.
For procurement of the above subject item seven Purchase Orders have
been placed on two Part I firms (i) M/s.Tirupati Plastomatics Pvt ltd/Jaipur and
(ii). M/s. Kanhha Cables Pvt Ltd/Jaipur at an All inclusive Rates of Rs.3,11,668.39 per Km with the acceptance of COS for a total value of
Rs.6,90,37,665.06(L/F-N/24) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on the above firms as the rates received in subsequent new tender of
this Railway are on higher side.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received in the
subsequent tender. It is stated that a new tender was opened on 07.07.15 for
the subject item. The All inclusive rate accepted against Part I firm is
Rs.2,93,093.75 per Km, whereas the instant PO updated AIR is Rs.2,88,605.75
per km (L/F.F/479). As the rates of instant PO is lower than the subsequent

tender and financially beneficial to Railways, SAG tender committee has


recommended to invoke (+)30% option clause (L/F-485ante) on the instant
POs for a total quantity of (39.87+66.45= 66.453Km )on the above firms.
2. It is stated that the performance of the firms are satisfactory. The firm M/s.
Tirupati Plastomatics Pvt Ltd/Jaipur has supplied 131.493Km out of the total
ordered quantity of 132.91 i.e . supplied 99% , as against M/s. Kanhha cables
pvt Ltd/jaipur the firm has supplied 87.649km against the ordered quantity of
88.60kms i.e supplied 99%.
3. The Delivery Period of the subject POs is expiring on 31.08.2015.
4. Necessary demands are available in the case file to cover the proposed 30%
option clause quantity.

NOTE/2
5.The financial implications of the proposed option clause are as follows:
1

Original Value of Seven POs originally

2
3
4

Original value of seven POs after applying


SVC
Original Qty in the POs.
(+) 30% option quantity

5
6

Qty already utilized under option clause


Now proposed qty under option clause

Value of the proposed option Qty

Total Value of the POs after exercising (+)


30% option clause
9
Competency of Sanction required
10 Delivery period available upto

Rs.
6,90,37,665.06
Rs.
6,91,18,993.37
221.51kms
66.453
kms
Nil
66.453
kms
Rs.2,07,11,299
.52
Rs.8,98,30,292
.90
COS
31.08.2015

In view of the financial advantage involved in the proposed option


clause, and as per the SAG Tender committee recommendations, if approved

we may concur the proposal to exercise (+)30% quantity option clause for a
total quantity of 66.453 Kms((M/s.tirupati Plastomatics Pvt Ltd/Jaipur for a
quantity
of
39.873Kms
against
PO.NOs.90655
dt:08.04.15,
29047,23011,49022 dt:20.02.15 and on M/s.Kanhha cables Pvt Ltd/Jaipur for a
quantity of 26.58Kms against PO.No.s.90656 dt:08.04.15, 34022,54016 dated
20.02.15.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., COS. As such, the proposal
requires the concurrence of FA&CAO/S&W.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 17.08.2015

Dy.CMM/S&T
Sub :- Procurement of UNDERGROUND Railway jelly filled 6 quadd telecom
cable for signaling and telecom installation, extension of DP on M/s.
Birla ericsson optical Ltd.-Reg.
Ref :- Dy.CMM/S&Ts Note No. 83 to 85 of Case file No:PS.56.11.5151.
-oOoThe proposal submitted in connection with Delivery period extension on the
above subject item Purchase Order have been examined and the following are the
observations.
1. How the material was received without prior DP extension has not been
brought out and justified. Further, details of receipt of materials, who has
received, how received, can they receive after the actual delivery date,
action taken/contemplated against the person at lapse, action taken to
prevent such lapses in further may be furnished.
2. The firm vide their letter dated 19.06.2015 mentioned that the bills were
submitted vide Bill NO. QO730/12-13 dated 23.10.2012 itself, as such the
details of bill submitted to the consignee and the dates on which the bills
were submitted to Accounts office, how the consignee has forwarded the
bills for payment without the DP extension may be furnished. Further, it may
confirmed from the consignee/Accounts office and details furnished with
documentary evidence, whether any payment were made against the said
Purchase order.
3. Incidentally it is found that for the same firm extension was granted in the
year 2014 vide N/74 without finance concurrence. Also vide N/66 DP
extension was granted on M/s. Golkonda engg enterprises/SC without
finance concurrence, the same may be clarified and the reasons for not
processing the case for finance concurrence may be furnished.
This issues with the approval of FA&CAO/S&W
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01

Dt. 19.06.2014

Dy.CMM/G
Sub : Procurement of PVC insulated armoured unscreened, underground
Railway signaling cable copper conductor, size 24 core * 1.5sq.mm
under (+) 30% Option Clause on M/s.Tirupati Plastomatics Pvt
Ltd/Jaipur and M/s. Kanhha Cables Pvt ltd/Jaipur
Ref : CMM/Es Note No: 35,36 of Case file No.PS.56.14.5046.
-oOoThe proposal submitted in connection with exercising of (+) 30% Option Clause on the
above subject item Purchase Orders have been examined and the following are the
observations.

1. As per the details made available in the case file m/s. Tirupati Plastomatics Pvt
Ltd against Po.No.90655 has supplied 51.310 Kms(i.e 49% supplies of the total
ordered quantity) for which the information made available on the file as against
the other POs No.49022,23011,29047 dated 28.05.15 the details of supplies
made were not furnished. As against M/s. Kanhha cables Pvt Ltd/Jaipur against
Po.NO.90656 has supplied 29.277Kms( i.e 49.6% supplies of the total ordered
quantity) for which information is made available on the file as against the other
POs 54016,34022dt:28.05.15 the details of supplies made were not furnished.
Hence full details of the supplies against the POs may be furnished and to
exercise option clause the firms performance is to be improved upon.
2. Finalized TC minutes for the tender opened on 07.07.2015 may be furnished.
Encl: case file
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

NOTE/1
Sub : Procurement of Resin Impregnated pleated filter paper
- Exercising of (+) 30% Option Clause.P.O.No:92557
Dt:05.11.2014
Ref :Dy.CMM/DSLs Note No:30-31 of Case file No. DSL/10/14/2989.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/DSL, which is placed
at Folio- 1/C may kindly be perused.
For procurement of the above subject item One Purchase Order has
been placed on M/s. G.S.Products, Dehradun at an all inclusive rate of
Rs.1608.60 per number and at a total value of Rs. 54,64,414.20 with the
acceptance of CMM (L/F-N/26).
Now, it is proposed to exercise (+)30% quantity option clause on the
above firm as the demand is available for the subject item.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened on
28.04.2015 for the subject item. The All inclusive rate accepted in the new
tender is Rs.1671.60 each (AIR) whereas the instant PO rate is
Rs.1608.60(AIR). As the rates of instant PO is lower than the subsequent
tender and financially beneficial to Railways, SAG tender committee has
recommended to invoke (+)30% option clause (L/F-69) on the instant PO for a
total quantity of 1019 Nos, which was accepted by AGM.
2. It is certified by the stores department that the performance of the firm is
satisfactory. The firm has supplied 1500Nos (accounted) and balance qty of
1897nos under inspection was accepted and billed on 20.07.2015. Delivery
period is expiring on 31.08.2015.
3. The financial implications of the proposed option clause are as follows:
1

Original Value of the PO.

Rs.54,64,41
4.20

2
3
4
5
6
7
8

Original Qty in the POs.


(+) 30% option quantity
Qty already utilized under option
clause
Now proposed qty under option
clause
Value of the proposed option Qty
Total Value of the PO after
exercising (+) 30% option clause
Competency of Sanction required

3397 Nos
1019Nos
Nil
1019 Nos
Rs.16,39,16
3.4
Rs.71,03,57
7.6
CMM

4.2
Necessary ANE is available (L/F-79) in the case file to cover the
proposed option quantity.
With the exercise of above option clause, the revised value will be with
in the powers of original accepting authority ie., CMM. As such, the proposal
requires the concurrence of Dy.CAO/S&W.
In view of the financial advantage involved in the proposed option
clause, and as per the SAG Tender committee recommendations, if approved
we may concur the proposal to exercise (+)30% quantity option clause for a
total quantity of 1019Nos on M/s. G.S.Products /Dehradun against
PO.NOs.92557 dt:05.11.14.
Submitted for kind perusal and orders please.
SSO(A)/(SF)
Sr.AFA/(SF)

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 20.08.2015

Dy.CMM/Elec
Sub:- Procurement of Lead acid battery set 6V-120 Ah- exercising of
(+)30% option clause against(i). M/s.Exide India Ltd/Kol(ii).M/s.
Southern Batteries P Ltd/SBC(iii).M/s.Celtek batteries Pvt
Ltd/SBC,(iv). M/s. Lead Acid battery Co P Ltd/Kol.
Ref:- Dy.CMM/Elec Note no.34-37 of case file No.PE.45.14.1089.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. In terms of Para 3.3 of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for
exercising (+)30% option clause, the performance of the firms against the

subject POs should be satisfactory. It is observed that as per information made


available in the file, the performance of the firms are 48sets,15sets,Nil,Nil
respectively and as DP is ahead i.e upto 30.09.2015. Hence, after satisfactory
performance the case file may be resubmitted for operation of +30% option
clause.
Encl : The concerned file.

(A.K.GANESHAN)
Sr.AFA/SF
FA&CAO/S&W

For

NOTE/1
Sub : Procurement of Air Brake Hose Coupling assembly under (+)
30% Option Clause-Reg.
Ref : Dy.CMM/C&Ws Note No:26 to28 of Case file No.PW.38.14.1544
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item five Purchase Orders have
been placed on (i) M/s.I.M.T. Cables Pvt Ltd/New Delhi(Part-II)(AIRRs.753.31each)(DP expired on 20.02.15) (ii) M/s.A.B.Elasto Products Pvt
Ltd/Kolkata(Part-II) (AIR- Rs. 766.86each)(DP expired on 30.04.15), (iii)
M/s.Pegasus Hose & engg co/Bahadurgarh(Part-II) (AIR- Rs.766.86each)(DP
expired on 30.04.15 (iv)M/s.Bony Polymers P Ltd/Faridabad(Part I)(AIR-

Rs.904.68each)& (v).M/s. Soni rubber Products/Kolkata(Part-I) (AIR- Rs.


904.68each) with the acceptance of CMM for a total value of Rs.47,89,883.86
(L/F-N/19) with (+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on (i) M/s.Bony Polymers P Ltd/Faridabad(Part I)& (ii).M/s. Soni rubber
Products/Kolkata(Part-I) only, option clause against other 3 firms cannot be
exercised as DP expired before opening new tender.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the recommendations of the
subsequent tender committee. It is stated that a new tender was opened
on 16.06.2015 for the subject item. The All inclusive rate accepted in the
new tender against Part I firm is Rs.933.19each (AIR) whereas the instant
PO rate is Rs.904.68(AIR). As the rates of instant PO is lower than the
subsequent tender and financially beneficial to Railways, Sr scale tender
committee has recommended to invoke (+)30% option clause (L/F-356
ante) on the instant POs for a total quantity of 807+434=1241 Nos, which
was accepted by CMM/M.
2. It is stated that the performance of the above firms is satisfactory.
However, it is learnt that the firm M/s.Sony Rubber Products Ltd/Kolkata
has completed the supplies and (ii).M/s.Bony Polymers Pvt Ltd/Faridabad
has supplied 2100nos out of the ordered quantity of 2691 nos i.e 78% and
DP is a head for the balance quantity i.e upto 31.10.15.
3. Necessary indent is available in the case file to cover option clause(F/362).

4. The financial implications of the proposed option clause are as follows:


1
2
3
4
5
6
7
8
9

Original Value of the five POs. (L/F-N/20)


Original Qty in the 2 POs.
(+) 30% option quantity
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

Rs.47,89,883.86
4139Nos
1241 Nos
Nil
1241Nos
Rs.11,22,707.88
Rs.59,12,591.74
CMM
31.10.15

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., CMM. As such, the proposal requires the
concurrence of Sr.AFA/SF.
In view of the financial advantage involved in the proposed option clause, and
as per the Sr Scale Tender committee recommendations, if approved we may concur
the proposal to exercise (+)30% quantity option clause for a total quantity of
434+807=1241Nos(MFT-803, TPTY-120, KZJ-96Nos,BZA-222) on M/s.Soni Rubber
Products Ltd/Kolkata against PO.No.92380 dt:22.10.14 for a quantity of 434Nos and
on M/s.Bony Polymers Pvt Ltd/Faridabad against Po.No.92381 dt:22.10.14 for a
quantity of 807Nos.
SSO(A)/SF
Sr.AFA/SF

OFFICE

OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
Dt.25.08.2015
Dy.CMM/C&W

(S&W),

Sub : Procurement of Air Brake Hose Coupling under (+) 30% Option
Clause-Reg.
Ref : Dy.CMM/C&Ws Note No:26 to28 of Case file No.PW.38.14.1544
***
The proposal received in connection with exercising of (+) 30% Option
Clause on the above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened
on 16.06.2015) for the above subject item is on higher side when compared
with the rates of the instant purchase orders. In view of the financial
advantage to Railways and as per subsequent TC recommendations, finance
concurrence is hereby signified for exercising (+) 30% Option Clause for a
total
quantity
of
434+807=1241Nos(MFT-803Nos,TPTY-120Nos,KZJ96Nos,BZA-222Nos)on (i) M/s.Bony Polymers Pvt Ltd/Faridabad for a quantity
of 807Nos against Po.No. 92381 dt:22.10.14 and on (ii) M/s.Soni Rubber
Products Pvt Ltd/Kolkata for a quantity of 434Nos against PO.No 92380
dt:22.10.14, with original terms and conditions with in Delivery Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantities.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs for
exercising +30% option clause
Encl : The concerned file.
(A.K.GANESHAN)
Sr.AFA/SF
For FA&CAO/S&W

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
26.08.2015

Dt.

Dy.CMM/DSL
Sub : Procurement of Resin Impregnated pleated filter paper of M/s. Clark part
No. HB-PP18 - Exercising of (+)30% Option Clause.P.O.No:92557
Dt:05.11.2014
Ref :Dy.CMM/DSLs Note No:30-31 of Case file No. DSL/10/14/2989.
The proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
28.04.2015) for the above subject item is on higher side. The rate accepted from
lowest offer is Rs.1671.60, whereas the instant Purchase Order rate is Rs.1608.60
per No. In view of the financial advantage and as recommended by SAG tender
committee, finance concurrence is hereby signified for exercising (+) 30% Option
Clause on M/s.G.S.Products, Dehradun for a quantity of 1019 Nos against
Po.No.92557 dt:05.11.14 with original terms and conditions with in Delivery
Period.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., CMM.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.
3. Fixing reasonable delivery schedule for the enhanced quantity.
4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.
6. Necessary original Indent may be placed on file for vetting MPOs for
exercising +30% option clause
This issues with the approval of Dy.CAO/S&W.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD

No.ASF/Q 01
26.08.2015

Dt.

Dy.CMM/G
Sub : Procurement of Decorative Thermosetting synthetic resin bonded
laminated sheet star dust gray under (+) 30% Option Clause.
Ref : Dy.CMM/Gs Note No:86 of Case file No.PO.75.13.1230.
-oOoThe proposal received in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Order has been examined and following are the
observations.
The delivery period of M/s. Deco Mica Ltd/Ahmedabad has expired on
17.08.2015 and as already advised repeatedly by this office that option clause has
to be exercised within the original/extended delivery period and should be valid on
date. Purchase officer to please note that all proposal should be sent well in
advance with all the required information for obtaining finance concurrence. So that
there is no delay whatsoever to the advantage of Railways.
Further, since there is financial advantage in invoking the option clause
against the said purchase order, file may be resubmitted duly refixing the delivery
period to concur the proposal.
Further, copy of the indents for procuring +30% option clause quantity may
be placed on file.
Encl : The concerned file.
( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W

No.ASF/Q 01
31.08.2015

OFFICE OF THE
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt.

Dy.CMM/Elec

Sub : Procurement of PVC insulated armoured unscreened, underground


Railway signaling cable copper conductor, size 24 core * 1.5sq.mm
under (+) 30% Option Clause on M/s.Tirupati Plastomatics Pvt
Ltd/Jaipur and M/s. Kanhha Cables Pvt ltd/Jaipur
Ref : CMM/Es Note No: 35,36,37 of Case file No.PS.56.14.5046.

***
The proposal received in connection with exercising (+) 30% Option Clause on the
above subject item Purchase Orders has been examined.
It is observed that the rates received in subsequent tender (ie., opened on
07.07..2015) for the above subject item is on higher side. The All inclusive rate accepted
against Part I firm is Rs. 2,93,093.75 per Km, whereas the instant PO updated AIR is Rs.
2,88,605.75 per Km. In view of the financial advantage and as per the subsequent TC
recommendations, finance concurrence is hereby signified for exercising (+) 30% Option
Clause against NON STOCK indent of construction only and the requirement of funds
availability may be taken from construction finance, on M/s.Tirupati Plastomatics Pvt
Ltd/Jaipur for a quantity of 39.873 Kms against PO.NOs.90655 dt:08.04.15,
29047,23011,49022 dt:20.02.15 and on M/s. Kanhha cables Pvt Ltd/Jaipur for a
quantity of 26.58Kms against Po.NOs 90656 dt:08.04.15,34022,54016 dated
20.02.15 and with original terms and conditions with in Delivery Period.The total value
after exercising +30% option clause is Rs. 8,98,30,292.90/-.
The above concurrence is subject to the following:
1. Obtaining the Sanction of original accepting authority, ie., COS.
2. Ensuring that no lower rates have been received in terms of para 3.3 of
Railway board letter No:99/RS(G)/779/5 Dt:12.03.10.

3. Fixing reasonable delivery schedule for the enhanced quantity.


4. Ensuring availability of funds during the current financial year.
5. Getting the MPOs vetted by Stores Finance section.

6. Necessary original Indent may be placed on file for vetting MPOs for exercising
+30% option clause.
Further, action taken against Dy.CMM/G&S/MFT letter dated 17.06.15 stating that no
coverage required against stock for this year and next year may be elucidated.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.
FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 01.09.2015

Dy.CMM/C&W
Sub : Procurement of Knuckle - Exercising of (+) 30% Option Clause
against M/s. Jai Multi engg Co /Bassi P.O.No:92933 Dt:17.12.14.
Ref :Dy.CMM/C&Ws Note:59,60 of Case file No.PW.38.14.1220.
oOoThe proposal received in connection with exercising of (+) 30% Option Clause on
the above subject item Purchase Order has been examined and following are the
observations.
1. Finalized TC minutes for the tender opened on 20.08.2015 may be placed
on file to gauge the rate reasonability.
2. Copy of indent to be placed on file for exercising option clause.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Procurement of set of valve regulated lead acid battery of 1100 AH
capacity under (+) 30% Option Clause against M/s. Microtex Energy
Pvt Ltd/Bangalore.
Ref : Dy.CMM/Elecs Note No:31 to 34 of Case file No.PE.45.14.1021.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/Elec, which is placed
at Folio-1/C may kindly be perused.
For procurement of the above subject item three Purchase Orders have
been placed on (i) M/s.Microtex Energy Pvt Ltd/Bangalore (Part-II)(AIR-

Rs.11,01,581.74 per set) (ii) M/s.Exide Industries Ltd/Kolkata (Part-I)


(AIR- Rs. 11,11,527.66 per set), (iii) M/s.HBL Power Systems
Ltd/Hyderabad (Part-I)(AIR-Rs.11,11,527.66 per set) with the
acceptance of COS for a total value of Rs.8,87,23,294.40(L/F-N/20) with
(+)30% option clause.
Now, Stores branch is proposing to exercise (+)30% quantity option
clause on M/s. Mocrotex Energy Pvt Ltd/Bangalore only on the basis of the
recommendations of subsequent tender committee.
The proposal has been examined and the following are the observations:
1. The proposal is being initiated based on the higher rates received in the
subsequent tender. It is stated that a new tender was opened on 30.06.2015
for the subject item. The All inclusive rate accepted against Part I firm is
Rs.11,35,893.75 per set, whereas the instant PO Part II firm updated rate AIR
is Rs.11,25,896.43 per set(L/F.F/246) which is lesser by Rs. 9,997.32 per set
and Part I firm updated rate AIR is Rs. 11,36,024.76 which is higher by
Rs.131.01 per set .
Since, there are no Part II sources in the current approved list as on date
and as there is price advantage when compared with Part II source, TC
recommends to operate +30% option clause on Part II source for 06sets, there
will be savings of Rs. 59,983.92 and as against Part I firm since the rate is
higher by 131.01 per set instead of operating -30% option clause TC consider
that to ask the firms to accept the lower rate received in the new tender.
Accordingly letters issued to firms vide F/266,267, reply awaited.
In view of the above and as there is financially beneficial to Railways,
SAG tender committee has recommended to invoke (+)30% option clause
(L/F-246) on M/s. Microtex Energy Pvt Ltd/SBC for a total quantity of 6sets

2. It is sta ted that the performance of the above firm is satisfactory. But as
against the subject PO the firm has not commenced the supplies till date.
Further, it is mentioned in TC that even though M/s. Microtex has not supplied
the quantity against the existing order the firm had supplied the subject item
in the past and is considered reliable. TC therefore recommends to exercise
option clause and procure 06sets( LGD) against the existing order.
3. A copy of Shortfall demand is placed to cover the proposed +30 option clause
quantity.
4. The financial implications of the proposed option clause are as follows:

Original Value of the Three POs. (L/F-N/22)

2
3
4
5
6
7

Original Qty in the 3 POs.


(+) 30% option quantity advantageous
Qty already utilized under option clause
Now proposed qty under option clause
Value of the proposed option Qty
Total Value of the POs after exercising (+) 30%
option clause
Competency of Sanction required
Delivery period available upto

8
9

Rs.8,87,23,294.
40
80sets
6 sets
Nil
6 sets
Rs.66,09,490.44
Rs.9,53,32,784.
84
COS
31.12.2015

With the exercise of above option clause, the revised value will be with in the
powers of original accepting authority ie., COS. As such, the proposal requires the
concurrence of FA&CAO/S&W.
In view of the above, if approved we may concur the proposal to exercise
(+)30% quantity option clause for a quantity of 06 sets on M/s. Microtex energy Pvt
Ltd/SBC against Po.No. 91890 dt:22.08.2014.
Submitted please.
SSO(A)/SF
Sr.AFA/SF

Dy.CAO/S&W
Dy.CAO/T

FA&CAO/S&W

FINANCIAL

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,

SECUNDERABAD
No.ASF/Q 01

Dt. 03.09.2015

Dy.CMM/Elec
Sub : Coverage of Set of 120 Ah VRLA Batteris capacity 6V, 120 Ah
under (+) 30% Option Clause.
Ref : Dy.CMM/Elecs Note No:30 to 34 of Case file No.PE.45.12.1396.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.

1. Even though it is mentioned in the TC minutes, in terms of Railway Board


Lr.No.99/RS(G)/779/5 Dt:12.03.10, for exercising (+)30% option clause, the
performance of the firm should be satisfactory. Since the firm has not
commenced the supplies, as such the performance of the firm is to be improved
upon to consider option clause.
2. The quantity required under shortfall NRM indent is only 6 sets, as such it may
be adjusted from the stock available to meet the requirement and as the DP is
far ahead i.e 31.12.2015 it would be prudent to watch the market rate/rates of
other railway through(IREPS) in due course and appropriate action taken
accordingly.
3. Updated basic rate as on submission of proposal may be placed on file.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

FINANCIAL

No.ASF/Q 01

OFFICE OF THE
ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),
STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
Dt. 03.09.2015

Dy.CMM/C&W
Sub : Procurement of K type brame block ..under (+) 30% Option
Clause.
Ref : Dy.CMM/Elecs C&W No:58,59 of Case file No.PC.30.14.3628.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. Finalized T C minutes copy for tender opened on 18.08.2015 may be placed on
file to assess rate reasonability.
2. Copy of the indent for operation of 30% option clause may be placed on file.
3. It is premature to exercise option clause as the DP of the subject case is far
ahead i.e 30.03.2016, hence it would be prudent to watch the market rate/rates
of other railway through(IREPS) in due course of time and appropriate action
taken.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

OFFICE

OF THE

FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER (S&W),


STORES FINANCE SECTION,
RAIL NILAYAM, IInd FLOOR,
SECUNDERABAD
No.ASF/Q 01

Dt. 04.09.2015

Dy.CMM/Elec
Sub : Procurement of Lead Acid Battry set 6V-120 AH under (+) 30% Option
Clause.
Ref : Dy.CMM/Elecs Note No:34 to 38 of Case file No.PE.45.14.1089.
***
The proposal submitted in connection with exercising of (+) 30% Option Clause
on the above subject item Purchase Orders have been examined and the following are
the observations.
1. In terms of Railway Board Lr.No.99/RS(G)/779/5 Dt:12.03.10, for exercising
(+)30% option clause, the performance of the firm should be satisfactory. Since
the firms M/s Celtek Batteries Pvt Ltd and M/s. Lead acid battery co P Ltd, still
not commenced the supplies, as such the performance of the firm is to be
improved upon to consider option clause. Further, as delivery period is fast
approaching i.e 30.09.2015 it may be confirmed and details furnished as to

whether the firm has offered the material for inspection/dispatched/material


received in the depot and accounted for to guage the performance for invoking
option clause.
2. As against other two firms M/s.Exide Ind Ltd and M/s. Southern Batteries as
DP is ahead i.e 31.12.15 it is premature to exercise option clause, it would be
prudent to watch the market rate/rates of other railway through(IREPS) in due
course and appropriate action taken accordingly.
Encl : The concerned file.

( A.K.GANESHAN )
Sr.AFA/SF
For FA&CAO/S&W.

NOTE/1
Sub : Procurement of improved high tensile tight lock centre buffer coupler
under (+) 30% Option Clause against M/s.Sanrok enterprises/Faridabad
Ref : Dy.CMM/C&Ws Note No:54,55 of Case file No.PC.33.13.1188.
-oOoA proposal seeking finance concurrence for operating (+) 30% option
clause on the above subject item, received from Dy.CMM/C&W, which is placed
at Folio-1/C may kindly be peruse