Section 8 in Rules for Rate Contract with Small Scale Industries of Orissa registered with the Directorate of EP&M, Orissa
8.
(i)The rate to be quoted by the offerer shall be lowest workable rate(s) on ex-factory basis acceptable to the offerer per unit as may be stipulated by the Director and shall specifically indicate whether the rates are inclusive or exclusive of duties and taxes, as applicable.(ii)The prices offered by the Small Scale Industrial Units shall be compared with the open market prices of reputed manufacturers and/or the rate contract price of the Director-General of Supplies and Disposal, if any, for the purpose of analysis and workability of rate(s) taking into consideration the Cost Analysis Report of Small Scale Industrial units. The Director shall cause assessment of the cost of the store item on the basis of the lowest current raw materials rate(s) as per the current purchase bills submitted by the offerers. Overhead cost shall be calculated on average basis subject to all the offerers submitting their latest audited balance sheets failing which the lowest overhead cost shall be considered. If the valid DGS&D rate is available for the store item, with similar specifications of the Directorate, the difference between the rate contract rate of the Directorate and the DGS&D rate shall not be more than 5%.As an encouragement to promote quality the store items being supplied to the Government under the Rate Contract shall be made eligible for 2% price preference for ISI mark and 3% for ISO Certification holders over and above the rates fixed in the Rate Contract. Any unusually high or low price offered without any reasonable co-relation with market rate and/or any unholy alliance or cartel to affect the price structure will be liable for rejection.(iii)The Director shall cause cost analysis of the store items within a period of 60 days from the date of receipt of offers subject to submission of complete current raw material, bills and other prescribed documents by the offerer(s).(iv)The price so determined by the Director shall be communicated to the Small Scale Industrial units and upon acceptance by the Small Scale Industries the rate contract will be concluded.(v)In case the Small Scale Industry(ies) refuse(s) to accept the price, the request of the contractor for rate contract at the same price on a subsequent occasion during the currency of contract shall not be entertained. Where for any item almost all the rate contract holders fail to give their consent since the rate is unworkable, the Director shall immediately cause review of the rate recommended by the Cost Committee. The Drugs Committee constituted by the Government for pharmaceutical products may be kept at par with the Cost Committee as the-case may be.(vi)After determination of the final rate, the contractor shall be asked to give his consent to the price within 30 days from the date of issue of the willingness notice. Any offerer who has not submitted willingness within 30 days of the date of issuing willingness notice shall not be eligible for rate contract as well as parallel rate contract during the contract period. Failure on the part of the Small Scale Industry to comply within the specified period shall disqualify him/her for rate contract during the period of contract, unless in the opinion of the Director, prevailing conditions have disabled the contractor from submitting his willingness to the rate(s).(vii)In determining the price the Director and the contractor shall also see that the prices quoted are in conformity with the price control orders either for raw material or finished goods, if any, issued by the Government of India or the State Government from time to time.(viii)If at any time after fixing the rate, before or after entering into rate contract, it is brought to the notice of the Director by a majority of contractors that the rate so fixed is not workable or that there has been a material error in computing the rate, the Director may cause revision of the said rates after being satisfied that there are valid grounds for the same.(ix)All offers shall be submitted in duplicate in the form prescribed in Schedules I to IV and all documents submitted with the offer shall be serial numbered and self-attested. Additional papers affixed to the schedules shall be adequately authenticated by the offerer. Absence of any document may make the offer liable for rejection.(x)The person signing the offer documents or otherwise connected with the contract shall mention his official status in respect of the offering Small Scale Industries and shall furnish authenticated copies of documents in support thereof.(xi)The offer shall be sent either by registered post or deposited in the "Offer Box" or at the receiving counter along with a list of documents submitted along with offer.(xii)Offers received after the date fixed by the Director shall not be considered :Provided further that if the last date fixed for receipt of offers happens to be a holiday, the next working day shall be deemed to be the date for receiving the offer.(xiii)Offerers or their authorized representatives may remain present at the time of opening of offers.(xiv)No Rate Contract will be concluded if valid STCC and copy of valid EP&M Registration Certificate have not been submitted at the time of giving consent to the rate.
