New Delhi: The Indian Railways plans to introduce a fixed delivery period (FDP) mechanism for future supply tenders to ensure timely procurement of critical items and enforce contractual discipline, said people familiar with the matter.
The move follows an investigation into a rail accident where repeated delivery extensions for safety items were found to have hindered their availability. Officials said the policy shift is aimed at reducing the heavy administrative workload on junior and senior-scale officers who currently spend significant time processing routine extension requests.
"The FDP mechanism will be applicable to fixed quantity supply contracts and not extended to rate contracts," a senior official told ET on condition of anonymity, adding that this would be a special contract condition in store tenders - usually floated at the Railway Board level.
The tightened supply clauses will apply to contracts where a specific, set number of items is agreed upon at the start. "Since the quantity is fixed, the Railway Board expects the supplier to be able to plan their production and delivery precisely," the official said.
The national transporter constantly uses safety components or standard spare parts with enough market competition to ensure suppliers can meet strict deadlines, the official pointed out.
According to a directive to production and maintenance units, the FDP mechanism should preferably be adopted in cases where sufficient market competition is available.
"No deviation from the delivery periods and penalties involved shall be permitted in tenders floated with this safeguard mechanism," the official said.
Railway units have also been instructed to adopt a 'cautious and realistic approach while fixing the delivery period'.
Those drafting the contracts must consider urgency of the item, quantity involved, availability of competition, complexity of manufacture, design consideration and past performance of suppliers, officials said.
Tenders will specify delivery period in lots to facilitate formation of severable contracts. Quarterly delivery schedules may be preferred (wherever feasible), the Railway Board has said, noting that each severable contract will be treated as separate to ensure speedier termination and enforcement of penalties.
The move follows an investigation into a rail accident where repeated delivery extensions for safety items were found to have hindered their availability. Officials said the policy shift is aimed at reducing the heavy administrative workload on junior and senior-scale officers who currently spend significant time processing routine extension requests.
"The FDP mechanism will be applicable to fixed quantity supply contracts and not extended to rate contracts," a senior official told ET on condition of anonymity, adding that this would be a special contract condition in store tenders - usually floated at the Railway Board level.
The tightened supply clauses will apply to contracts where a specific, set number of items is agreed upon at the start. "Since the quantity is fixed, the Railway Board expects the supplier to be able to plan their production and delivery precisely," the official said.
The national transporter constantly uses safety components or standard spare parts with enough market competition to ensure suppliers can meet strict deadlines, the official pointed out.
According to a directive to production and maintenance units, the FDP mechanism should preferably be adopted in cases where sufficient market competition is available.
"No deviation from the delivery periods and penalties involved shall be permitted in tenders floated with this safeguard mechanism," the official said.
Railway units have also been instructed to adopt a 'cautious and realistic approach while fixing the delivery period'.
Those drafting the contracts must consider urgency of the item, quantity involved, availability of competition, complexity of manufacture, design consideration and past performance of suppliers, officials said.
Tenders will specify delivery period in lots to facilitate formation of severable contracts. Quarterly delivery schedules may be preferred (wherever feasible), the Railway Board has said, noting that each severable contract will be treated as separate to ensure speedier termination and enforcement of penalties.
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