Guidelines (For Goods):

Ref no: Code :1. *Tender for Drugs & Medicines 001/DRUG/GOMP2009-10 dt.20.01.2010 (Goods)

Ref No : Code: 2 *Tender for Suture & Surgical 002/SURG/GOMP2009-10 dt.25.01.2010 (Goods)

1. Rates (inclusive of Excise Duty, Customs duty, transportation, insurance, and any incidental charges, but
exclusive of Sales Tax) should be quoted for each of the required drugs, medicines etc., separately on door
delivery basis according to the unit ordered. Handling, clearing, transpo rt charges etc., will not be paid.
2. SUPPLY CONDITIONS:
Delivery: Mention the delivery destinations with full address, Phone, Fax and contact person

-------------------------------------------

------------------------------------------- Installment: mention Qty and month per quarter

Sr no Item Quarter Quantity

1 Qr I

Qr II

Qr III

Qr IV

2 Qr I

Qr II

Qr III

Qr IV

3 Qr I

Qr II

Qr III

Qr IV

4 Qr I

Qr II

Qr III

Qr IV

5 Qr I

Qr II

Qr III

Qr IV

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3. The supplied Medicines and Drugs / Sutures & Surgical materialss (covered in Schedule-P of Drugs and
Cosmetics Act) should have a maximum potency throughout the shelf life period
as prescribed in the Drugs and Cosmetics Act 1940 and rules there under. All other items of drugs and
medicines should have shelf life period of minimum 2 years from the date of manufacture. The medicines
and Drugs should be supplied within 30 days from date of manufacture.

4. Shelf Life: All drugs supplied should have at least a minimum of 3/4th of the shelf life of the drug
supplied at the time of supply.The item should have a minimum period of 2 years shelflife from the
date of manufacture.

5. Test Certificate: Test Analysis report from a Government approved / manufacturer's approved laboratory
for every batch of drug along with invoice must be supplied. In case of failure on the part of the supplier to
furnish such report, the batch of drugs will be returned back to the suppliers and he is bound to replenish the
same with Govt. approved lab test report. The Drugs and medicines supplied shall be of the best quality and
shall comply with the specifications, stipulations and conditions specified

6. Supply period timeline: As specified supply the product, at the designated places within 30 days from
the date of manufacture of that product. In case, the product received after 30 days from date of
manufacture and the product not consumed before its expiry date, the supplier should replace the expired
quantity with fresh stock of long shelf life, otherwise the expired product will be returned to the supplier and
the value equal to the cost of expired quantity will be recovered, if payment for the above supply has been
made already. The supplier should supply at least 20% of the ordered quantity at the specified locations as
per the schedule within 30 days from the date of purchase order and at least 70% of the ordered quantity at
specified locations within 45 th day from the date of order, otherwise the ordering authority will have the right
to place orders not exceeding 30% of the ordered quantity from the 31st day up to 45th day from the date of
purchase order and up to 50% of the order quantity after 45th day from the date of Purchase order
respectively, on any other matched /unmatched supplier at the discretion of the ordering authority. The risk
and differential cost will be passed on to the original supplier.

7. If the supplier fails to execute the supply within the stipulated time, the ordering authority is at liberty to
make alternative purchase of the items of drugs and medicines for which the Purchase orders have been
placed from any other sources or in the open market or from any other supplier who might have quoted
higher rates at the risk and the cost of the supplier and in such cases the Ordering Authority / Tender inviting
authority has every right to recover the cost and impose penalty as mentioned in Clause 19, apart from
terminating the contract for the default.

8. The order stands cancelled at the end of 60 th day after levying penalty on the value of unexecuted order.
Penalties shall also thereafter apply to the supplier as specified at Clauses 19. Apart from risk / alternate
purchase action, the tenderer shall also suffer forfeiture of the Security Deposit and shall invite other penal
action like blacklisting / disqualification from participating in present and future tenders of Tender Inviting
Authority /ordering authority.

9. It shall be the responsibility of the supplier for any shortages/damage at the time of receipt in the
designated places. Ordering Authority is not responsible for the stock of drug received, for which no order is
placed.

10. The supplier shall take back Drugs, which are not utilized by the ordering authority within the shelf life
period based on mutual agreement.

11.Force Majeure: If at any time supplier has, in the opinion of the ordering authority, delayed in making any
supply by reason of any riots, mutinies, wars, fire, storm, tempest or other exceptional cause on a specific
request made by the supplier within 7 days from the date of such incident, the time for making supply may
be extended by the ordering authority at its discretion for such period as may be considered reasonable. The
exceptional causes do not include the scarcity of raw material, power cut, labor disputes.

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12. The supplier shall not be in any way interested in or concerned directly or indirectly with, any of the
officers, subordinates or servants of the Tender Inviting Authority in any trade or business or transactions
nor shall the supplier give or pay promise to give or pay any such officers, subordinates or servants directly
or
indirectly any money or fee or other considerations under designation of “Customs” or otherwise, nor shall
the supplier permit any person or persons whom so ever to interfere in the management or performance
hereof under the power of attorney or otherwise without the prior consent in writing of the Tender
Inviting Authority

13. L OGOGRAMS
Logogram means, wherever the context occurs, the design as specified. The name of the drug shall be
mentioned in Hindi and English.

All tablets and capsules have to be supplied in standard packing of 10 x 10 in strip or blister packing with
printed logogram and shall also conform to Schedule P1 of the Drugs & Cosmetics Act & Rules wherever it
applies. Affixing of stickers and rubber stamps shall not be accepted. Vials, Ampoules and Bottles
containing the items should also carry the logogram.

Penal Provision: Failure to supply Drugs etc., with the logogram will be treated as
breach of the terms of agreement and liquidated damages will be deducted from bills payable as per
condition in Clause 18(5).
14. PACKING
1. The Drugs and medicines shall be supplied in the package specified in Annexure-VI and Annexure-VII
and the package shall carry the logograms specified in Annexure-II.
2. The packing in each carton shall be strictly as per the specification mentioned in Annexure-VII. Failure to
comply with this shall lead to non-acceptance of the goods besides imposition of penalties.
3. The capsules of bottle preparations should not carry the name of the supplier.
4. The labels in the case of injectable should clearly indicate whether the preparations are meant for IV, IM,
SC, etc.
5. The capsule shall have the name of the drug, in addition to the logo.
6. It should be ensured that only first hand fresh packaging material of uniform size including bottle and vial
is used for packing.
7. All primary packing containers should be strictly conforming to the specification included in the relevant
pharmacopoeia.
8. Packing should be able to prevent damage or deterioration during transit.
9. In the event of items of drugs supplied found to be not as per specifications in respect of their
packing, the Ordering Authority is at liberty to make alternative purchase of the items of drugs and
medicines for which the Purchase orders have been placed from any other sources or in the open market or
from any other supplier who might have quoted higher rates at the risk and the cost of the supplier and in
such cases the ordering.Authority has every right to recover the cost and impose penalty as mentioned in
Clause 18.5 and 19.

16. QUALITY TESTING

1. Samples of supplies in each batch will be chosen at the point of supply or distribution / storage points for
testing within three days and send for testing to the empanelled Laboratories after seeing the selected items
are listed in the laboratories empanelled . (The samples would be sent to different empanelled laboratories
for testing by the ordering authority after coding). Handling and testing charges will be deducted by ordering
authority for the above purpose, as specified in Clause 18.1.
2. The Drugs shall have the active ingredients at the maximum permissible level throughout the shelf life
period of the drug. The samples will be drawn periodically throughout the shelf life period. The supplies will
be deemed to be completed only upon receipt of the quality certificates from the laboratories. Samples
which do not meet quality requirements shall render the relevant
batches liable to be rejected. If the sample is declared to be Not of Standard Quality or spurious or
adulterated or mis -branded, such batch/batches will be deemed to be rejected goods.
3. In the event of the samples of Drugs and medicines supplied failing quality tests or found to be not as per
specifications the ordering authority is at liberty to make alternative purchase of the items of drugs and
medicines for which the Purchase orders have been placed from any other sources or in the open market
orfrom any other supplier who might have quoted higher rates at the risk and the cost of the supplier and in
such cases the ordering authority has every right to recover the cost and impose penalty as mentioned in
Clause 19.

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If any articles or things supplied by the Supplier have been partially or wholly consumed after the supply and
are subsequently found to be of bad odor, unsound, inferior in quality or description or are otherwise faulty
or unfit for consumption,then the contract price or prices of such articles or things will be recovered from the
Supplier, if payment had already been made to him. Otherwise the Supplier will not be entitled to any
payment whatsoever for such article .for infringement of the stipulations of the contract or for justifiable
reasons,the contract may be terminated by the ordering authority and the Supplier shall be liable for all
losses sustained by the purchaser in consequence of the termination which may be recovered personally
from the tender or from his properties as per rules. The supplier shall furnish the source of procurement of
raw material utilised in the formulations as required by the Purchaser. Purchaser reserves the right to cancel
the orders, if the source of supply is not mentioned.
4. The supplier shall furnish to the purchaser the evidence of bioavailability and/or bio-equivalence for
certain critical drugs will be supplied by the Supplier, if there is any problem in the field.
5. The supplier shall furnish evidence of basis for expiration dating and other stability data concerning the
commercial final package will be supplied by the Supplier upon request by the Purchaser.

16.1During the contract period if 2 batches of the particular item supplied by the firm fail in ASSAY
content then the product of that particular firm would be blacklisted.

16.2 During the contract period if three batches of the particular item supplied by the firm fails in
quality test (ASSAY content, description test and other parameters mentioned in pharmacopoeia) then that
particular item will be blacklisted for the firm.

16.3 In respect of the firm supplying more than one item during the contract period if more than 50% of
the items are blacklisted based on the above process, then the Firm will be blacklisted.

16.4 In case of any sample in even one batch declared as spurious or adulterated or misbranded by
the Government Analyst, the company will be blacklisted.

16.5 Inspection of factory: In respect of the items mentioned in the Schedule, the Supplier shall allow
inspection of his factory at any time during the continuance of the tender period by a team of
Experts/Officials whom the Purchaser may depute for the purpose. The Supplier shall extend all facilities to
the team to enable to inspect the manufacturing process, quality control measures adopted etc.
The Purchaser is free to terminate the Contract and /or take penal action against the Supplier as per the
provisions of the "Conditions of tender" on the basis of the results of such inspections.

17. PAYMENT PROVISIONS

1. No advance payments towards costs of drugs, medicines etc., will be made to the supplier.
2. The verification of the bills of the supplier and supplied drugs /Hos pital goods would be done by the
Stores in-charge at the district facilities of the Ordering Authorities. On receipt and after verification of the
goods, it would be entered in the stock register.
Payment would be made by the Ordering authority /Procurement Officer of GOMP of the institution from the
allocated budget to the Health institutions.
3. On receipt of the analytical report regarding quality the payment would be made in 30days and
responsibility would rest with respective CMHO, Civil Surgeon and all other Procurement Officers. The
payment will be made within 45 to 60 days of the receipt of drugs and pass in the quality tests.
4. All bills/ Invoices should be raised in triplicate and in the case of excisable Drugs and Medicines, the bills
should be drawn as per Central Excise Rules in the name of the authority as may be designated.
5. Payments for supply will be considered only after supply of 70% of items of Drugs ordered in the
Purchase Order PROVIDED reports of Standard Quality on samples testing received from Government
Analyst or Approved Empanelled Laboratories of ordering authority.
6. If at any time during the period of contract, the price of tendered items is reduced or brought down by any
law or Act of the Central or State Government or by supplier himself, the supplier shall be bound to inform
ordering authority
immediately about such reduction in the contracted prices.ordering authority is empowered to unilaterally
effect such reduction as is necessary in rates in case the supplier fails to notify or fails to agree for such
reduction of rates.
7. (a) In case of any enhancement in Excise Duty due to notification of the Government after the date of
submission of tenders and during the tender period, the quantum of additional excise duty so levied will be
allowed to be charged extra as a separate item without any change in the basic of the price structure price of
the Drugs approved under the tender. For claiming the additional cost on account of the increase in Excise
Duty, the supplier should produce a letter from the concerned Excise authorities for having paid additional
Excise Duty on the

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goods supplied to ordering authority and also must claim the same in the invoice separately.
Similarly if there is any reduction in the rate of essential drug, as notified by the Govt., after the date of
submission of tender, the quantum of the price to the extent of reduction of essential drug will be deducted
without any change in the basic price of the price structure of the drugs approved under the
tender.
(b) In case of successful bidder has been enjoying excise duty exemption on any criteria of Turnover etc.,
such bidder will not be allowed to claim excise duty at later point of time, during the tenure of contract, when
the excise duty is chargeable on goods manufactured.

18. DEDUCTION IN PAYMENTS:

1. In all supplies, 1.5% of the supply value shall be deducted towards handling & testing charges.
2. If the supply reaches the designated places between 5 PM of the 45th day and 5 PM of 60th day from the
date of purchase order, a liquidated damages will be levied at 0.5% per day for delayed supply between
46th day and 60th day up to a maximum of 7.5%,irrespective of the ordering authority having actually
suffered
any damage/loss or not, on account of delay in effecting supply.
3. If there is any unexecuted orders after 5 PM of 60th day from the date of purchase order, the order shall
stand cancelled automatically after levying penalty @ 20% on the value of unexecuted order and such
penalty is recoverable from any amount payable to the supplier.
4. If the supply is received in damaged condition it shall not be accepted. In case of damage in the packing,
the supply will be accepted only after levying penalty on the total value of supply to that the destination
place. Further the Performance Security (SD) would be forfeited with a notice to the supplier.
5. All the suppliers are required to supply the product with logogram and with prescribed packing
specification. If there is any deviation in these Tender conditions a separate damages will be levied @ 2%
irrespective of the ordering authority having actually suffered any damage/loss or not, without prejudice the
rights of alternative purchase specified in Clause No.15.10.

19. QUALITY CONTROL DEDUCTION & OTHER PENALTIES:

1. If the supplier fails to execute the agreement and / or to deposit the required security deposit within the
time specified or withdraws his tender after the intimation of the acceptance of his tender has been sent to
him or owing to any other reasons, he is unable to undertake the contract, his contract will be cancelled and
the Earnest Money Deposit deposited by him along with his tender shall stand forfeited by the Tender
Inviting Authority and he will also be liable for all damages sustained by the Tender Inviting Authority apart
from blacklisting the supplier for a period of one year.
2. If the samples do not conform to statutory standards, the supplier will be liable for relevant action under
the existing laws and the entire stock in such batch should be taken back by the supplier within a period of
30 days of the receipt of the letter from ordering authority. The stock shall be taken back at the expense
of the supplier. Ordering authority has the right to destroy such NOT OF STANDARD DRUGS if the supplier
does not take back the goods within the stipulated time. ordering authority will arrange to destroy the NOT
OF STANDARD drugs within 90 days after the expiry of 30 days mentioned above, without further notice,
and shall also collect demurrage charges calculated at the
rate of 2% per week on the value of the drugs rejected till such destruction.
3. If any items of Drugs / Medicines supplied by the supplier have been partially or wholly used or consumed
after supply and are subsequently found to be in bad odour, unsound, inferior in quality or description or
otherwise faulty or unfit for consumption, then the contract price or prices of such articles or things will be
recovered from the supplier, if payment had already been made to him. In other words the supplier will not
be entitled to any payment whatsoever for Items of drugs found to be of NOT OF STANDARD QUALITY
whether consumed or not
consumed and the ordering authority is entitled to deduct the cost of such batch of drugs from the any
amount payable to the tenderer. On the basis of nature of failure, the product /supplier will be moved for
Black Listing.
4. For supply of drugs of NOT OF STANDARD QUALITY the Director of Drugs Control will be informed for
initiating necessary action on the supplier and that product shall be blacklisted and no further supplies
accepted from him till he is
legally discharged. The supplier shall also not be eligible to participate in tenders of ordering authority for
supply of such Drugs for a period of five subsequent years.
5. The supplier shall furnish the source of procurement of raw materials utilized in the formulations if
required by ordering authority. Ordering Authority reserves the right to cancel the purchase orders, if the
source of supply is not furnished.
6. The decision of the ordering authority or any Officer authorized by him as to the quality of the supplied
drugs, medicines etc., shall be final and binding.

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7. Ordering Authority will be at liberty to terminate without assigning any reasons thereof the contract either
wholly or in part on 30 days notice. The supplier will not be entitled for any compensation whatsoever in
respect of such termination.
8. For infringement of the stipulations of the contract or for other justifiable reasons, the con tract may be
terminated by the ordering authority, and the supplier shall be liable for all losses sustained by the ordering
authority, in consequence of the termination which may be recovered personally from the supplier or from
his properties, as per rules.
9. Non performance of any of the contract provisions will disqualify a firm to participate in the tender for the
next five years.
10. (a) In the event of making ALTERNATIVE PURCAHSE, as specified in Clause 13.6, Clause 15.10 and in
Clause 16.3 the supplier will be imposed penalty apart from forfeiture of Security Deposit. The excess
expenditure over and above contracted prices incurred by the ordering authority in making such purchases
from any other sources or in the open market or from any other
supplier who has quoted higher rates and other losses sustained in the process, shall be recovered from the
Security Deposit or from any other money due and become due to the supplier and in the event of such
amount being insufficient, the balance will be recovered personally from the supplier.
(b) Aggrieved by the decision or levy of fine by the Ordering Authority, the supplier can make an
appeal with the concerned Directors. Aggrieved by the decision of the concerned Director, the
supplier can take up the appeal with the Tender Inviting Authority.
11.In all the above conditions, the decision of the Tender Inviting Authority, viz. Director Medical
Services, Health and Family Welfare Department, Govt. of Madhya Pradesh would be final and
binding, in case of any dispute regarding all cases under tender procedure or in any other non-ordinary
situation and would be acceptable to all.
12.All litigations related to the supplier for any defaults will be done by Tender Inviting Authority
and his decision will be final and binding.

20. PURCHASE POLICY

The purchase policy of the ordering authority is in Annexure-XI.

21. BLACKLISTING PROCEDURE

The procedure of the ordering authority for blacklisting is in Annexure-X.

22. SAVING CLAUSE

No suit, prosecution or any legal proceedings shall lie against Tender Inviting Authority or any person for
anything that is done in good faith or intended to be done in pursuance of tender.

23. JURISDICTION
In the event of any dispute arising out of the tender or orders such dispute would be subject to the
jurisdiction of the Court of Madhya Pradesh or Honorable High Court of Madhya Pradesh.