Section 8(ii) in Rules for Rate Contract with Small Scale Industries of Orissa registered with the Directorate of EP&M, Orissa
(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%.
