SCRUTINY OF FINANCE PROPOSALS

1. SCRUTINY OF FINANCE PROPOSALS

2. Funds • Revenue – Demand No.1-15 • Capital - Demand No. 16 • Plan Heads of expenditure-Capital • 1100- New lines • 1400-GC • 1600-Traffic Facility works • 3300-S&T works • 4100-M&P • 5300-Passenger Amenity works • 6400-Other specified works

3. Sources of funds • Capital • Capital Fund • DRF • OLWR • DF-I,II,III,IV • Safety fund • SRSF

4. Works Programme- • PWP/Survey Reports • FWP • PB • List of approved works (LAW) • Lump sum Works Programme (LSWP) • Out of Turn works (OOT)

5. Check list for PWP/LSWP • Administrative approval • Initial Vetting • Rates & Quantities • Barest Minimum facilities • Approval of Personnel Branch for Quarters • As per existing Policy Guidelines • Sketches and Drawings • Major Modifications • Allocation and Source of Funding • Permissible Cost • ROR

6. Proposals which do not require Financial Justification • Expenditure on Statutory Obligation • Expenditure on consideration of Safety • Passenger Amenity Works • Labour Welfare Works

7. Verbatim Comments of FA&CAO • Merit and Justification – Low Cost Alternative • Reasonableness of Rates and Quantities particularly for High Value Items • Comments regarding reasonableness of assumptions made in the forecast of Earnings/Benefits • Correctness of ROR • Whether the cost proposed is within the permissible ceiling limit.

8. Scrutiny of Detailed Estimates – • Revenue – beyond Rs.2 lakhs • Capital – beyond Rs.10,000/- • Rates • Quantities and Specifications • Finance vetting – Arithmetical accuracy • Financial Justification • Incidence and Allocation • Sanction of Competent Authority

9. Material Modifications • (a) Any change in the alignment likely to affect the facilities offered to the public in the neighbourhood or likely to increase or decrease the length of the line by over one kilometre. • (b) Introduction of any new station or omission of any station. • (c) Any alteration in the type or number of engines or vehicles provided in an estimate for rolling-stock. • (d) A change in the layout of a yard affecting the general method of working or increasing or reducing the number of trains that can be dealt with. • (e) Any departure from the standards of construction as prescribed in Chapter II or as accepted by the Railway Board in the Abstract Estimate or use of any second hand material, if it affects the speed of trains or the number of trains to be dealt with than contemplated originally. • (f) The introduction or omission of any work or facility involving a sum of Rs.5 lakhs and over. • (g) Any modification of a sub-work provided for in the estimate of a sanctioned work involving an additional outlay on that sub-work of more than Rs.5 lakhs. • (h) The introduction of the new sub-work not provided for in the estimate of a sanctioned work involving an outlay of more than Rs.5 lakhs. • (i) Any alteration in the standards of interlocking.

10. Preparation of Tender Schedules – • GCC and special conditions of the contract • Quantities/specifications • Rates • PVC clause • Stage payment clause • Eligibility criteria • Turn over criteria • Fixation of cost of tender form, EMD, SD & PG • Period of contract • Pre-vetting of tender schedules

11. Selection of Type of Tender • Open Tender • Limited Tender • Special Limited Tender • Single Tender • Two-Packet Tender • Notice period

12. Opening of Tenders and Briefing Note • Witnessing of timely closing and opening of tenders • Sealing, opening, numbering, circling, corrections, initials • Omissions, completeness, attestations • Delayed/Late tenders • Briefing Note verification • Tabulation of rates/LARs • Evaluation of credentials • Genuineness of the EMD • Details of black listing, if any • Details of works on hand • Estimate provision

13. Tender Committee • Convener, Finance Member & sister department • Two/Three member committee • Reasonableness of rates • Evaluation of credentials • Negotiations • Recommendations • Dissent Note • Counter offer

14. Acceptance of Tender • Accepting authority • Powers of accepting authority • Responsibility of accepting authority • Issue of acceptance letter (LOA) • Submission of Performance Guarantee • Signing of agreement

15. Execution/Variation of Contract • As per Terms and Conditions • Prompt payment on account bills • Recovery of SD • Additional items • Excess operation of existing items • Extensions of currency of contract • Prompt payment of Final bills • Release of performance guarantee and SD • Risk & Cost

16. Misc Proposals • Indents • Furniture proposals • Computer Proposals • Imprest • Policy guidelines • Office stationery, equipments • Vehicles, vehicle repairs • Special contingencies • Annual Maintenance Contracts • Other miscellaneous proposals.

17. Points to be seen for Misc proposals • Justification. • Administrative approval. • Funds availability • Rate reasonability • Finance concurrence • Sanction of competent authority • Mode of execution/Procurement

18. Arbitration Cases- Reasons for the rise • Delay in handing over the site • Delay in furnishing the approved plans/drawings • No field survey before the estimate/schedule is prepared • No periodic review of the contract • No timely action to deal with the variations/deviations • Not making the measurements in time • Non settlement of the bills/SDs in time

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