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Government departments should be asked whether the item could be utilized. By sale it
could be done by either sale by tender or auction sale after the recommendations of the
Survey committee. The Surplus Stock Section should scrutinize every public call for tender,
stores, bulletins and Home indents issued by other Railways, the Director General of
Supplies and Disposals or any other Govt. department or public body and in addition
examine advertisements in papers in order to discover suitable opportunities of affecting the
sale of surplus stock and over stocks.

Q 40. What is tender? How will you classify tenders? Explain
Tender: A tender is a sort of Bid offer made by a party/contractor or a firm for the execution

of work or supply of materials under specified conditions and within specified time limit.
Advantage of Tender: In line with the canons of financial properties, it is the intention of
functionaries dealing with tenders to get most economical and reasonable rates for work to

execute on contracts. Tenders are useful for getting the best possible vale for the money
spent.
Types of Tenders:

a. Open tender:
i. Advertise high value tenders in news papers and internet.
ii. There is no limitation of bids that can be made by the no of contractors.

iii. Sale of tender forms not to be detained anyone.
iv. As an implementation of Sudhir Chandra report while publishing the tender
notice it should be carefully checked the eligibility criteria of firms.

v. Through open tender the work will be done for above 10 lakh and in case of
safety related work above 2 crore.
b. Limited tender
i. This tender requires skilled employees

ii. Limited tender invites the contractors who are specialists in partiucular work
iii. Minimum 10 firms required to be fill tender forms
iv. Firms should be registered in railway registration list

v. Limited tenders invited with approval of FA&CAO
vi. If the number of contractors are less than the limited list or the contractor not
willing to do the work then the work will be completed through the open tender

system
vii. The work will be done upto 20 lakhs
viii. In some special conditions limited tenders also called. Amount sanctioning slab

as follows:
1. Upto 25 lakhs - JAG/SAG
2. 25 Lakh to 1 crore - SAG/DRM

3. 1 Cr to 5 Cr - PHOD/CHOD
c. Single tendering
i. In single tender through OEM the AMC work will be done.