Common use of Purchase Preference Clause in Contracts

Purchase Preference. (1) The requirement specified in this Tender is of non-divisible in nature, and both MSEs as well as Class-I local suppliers are eligible for purchase preference. The Purchase preference under make in India and under PPP for MSE 2012 shall be accorded as under: (i) L-1 is "MSE Class-I local supplier": Contract shall be awarded to L-1. (ii) L-1 is not "MSE Class-I local supplier " but the "MSE Class-I local supplier" falls within 15% margin of purchase preference. Purchase preference shall be given to lowest quoting "MSE Class-I local supplier". If lowest quoting "MSE Class-I local supplier" does not accept the L-1 rates, the next higher "MSE Class-I local supplier" falling within 15% margin of purchase preference is to be given purchase preference and so on. If all "MSE Class-I local supplier" do not accept L-1 rates, then Para (iii) shall be followed. (iii) If conditions mentioned in sub paras 3(i) and 3(ii) above are not met i.e. L1 is not "MSE Class-I local supplier" and "MSE Class-I local supplier" is not eligible to take benefit of purchase preference as per PPP-MSE Order or all "MSE Class-I local supplier" do not accept L-1 rates, the contract is to be awarded / purchase preference to be given in different possible scenarios as under: A. L-1 is "MSE but non-Class-l local supplier" or "Non-MSE but Class-I local supplier": Contract be awarded to L-1. B. L-1 is "Non-MSE non-Class-l local supplier": Firstly, purchase preference shall be given to eligible MSE as per PPP-MSE Order. If MSEs not eligible or does not accept then purchase preference to be given to eligible Class- I Local supplier as per PPP-MII Order. If Class-I Local supplier is also not eligible or does not accept then contract be awarded to L1.

Purchase Preference. (1) The requirement specified in this Tender is of non-divisible in nature, and both MSEs as well as Class-I local suppliers are eligible for purchase preference. The Purchase preference under make in India and under PPP for MSE 2012 shall be accorded as under: (i) L-1 is "MSE Class-I local supplier": Contract shall be awarded to L-1. (ii) L-1 is not "MSE Class-I local supplier " but the "MSE Class-I local supplier" falls within 15% margin of purchase preference. Purchase preference shall be given to lowest quoting "MSE Class-I local supplier". If lowest quoting "MSE Class-I local supplier" does not accept the L-1 rates, the next higher "MSE Class-I local supplier" falling within 15% margin of purchase preference is to be given purchase preference and so on. If all "MSE Class-I local supplier" do not accept L-1 rates, then Para (iii) shall be followed. (iii) If conditions mentioned in sub paras 3(i) and 3(ii) above are not met i.e. L1 is not "MSE Class-I local supplier" and "MSE Class-I local supplier" is not eligible to take benefit of purchase preference as per PPP-MSE Order or all "MSE Class-I local supplier" do not accept L-1 rates, the contract is to be awarded / purchase preference to be given in different possible scenarios as under: A. L-1 is "MSE but non-Class-l local supplier" or "Non-MSE but Class-I local supplier": Contract be awarded to L-1. B. L-1 is "Non-MSE non-Class-l local supplier": Firstly, purchase preference shall be given to eligible MSE as per PPP-MSE Order. If MSEs not eligible or does not accept then purchase preference to be given to eligible Class- I Local supplier as per PPP-MII Order. If Class-I Local supplier is also not eligible or does not accept then contract be awarded to L1. 30.1 Any bidder from a country which shares a land border with India will be eligible to bid in this tender only if the bidder is registered with the Competent Authority. The competent authority for Purpose of registration under this order shall be registration committee constituted by department for promotion of industry and internal trade. (DPIIT) 30.2 Bidder means any person or firm or company, including any member of a consortium or joint venture (that is an association of several persons, or firms or companies), every artificial juridical. Person not falling in any of the descriptions or bidders stated hereinbefore, including any agency branch-or office controlled by such person, participating in a procurement process. 30.3 Bidder from a country which shares a land border with India for the purpose of this Order means: - a) An entity incorporated, established or registered in such a country; or b) A subsidiary of an entity incorporated, established or registered in such a country; or c) An entity substantially controlled through entities incorporated, established or registered in such a country; or d) An entity whose beneficial owner is situated in such a country: or e) An Indian (or other) agent of such an entity; or f) A natural person who is a citizen of such a country; or g) A consortium or joint venture where any member of the consortium or joint venture falls under any of the above.

Purchase Preference. (1) The requirement specified in this Tender In case of tendered item is of non-not divisible in nature, and both MSEs as well as Class-I local suppliers are eligible for purchase preference. The Purchase preference under make in India and under PPP for MSE 2012 shall be accorded as under: (i) L-1 procurement of services where the bid is "MSE evaluated on price alone, the “Class-I local supplier"” get purchased preference over “Class-II local supplier” as well as “Non local supplier” as per following procedure: Contract shall - (i) Among all qualified bids, the lowest bid will be termed as L1. If L1 is Class-I local supplier the contact will be awarded to the L-1. (ii) If L-1 is not "MSE Class-I local supplier " but the "MSE lowest bidder among the Class-I local supplier" falls supplier will be invited to match the L-I price subject to Class-I local suppliers quoted price falling within 15% the margin of purchase preference. Purchase preference , and the contract shall be given awarded to lowest quoting "MSE such Class-I local supplier". If lowest quoting "MSE Classsupplier subject to matching L-I local supplier" does not accept the L-1 rates, the next higher "MSE Class-I local supplier" falling within 15% margin of purchase preference is to be given purchase preference and so on. If all "MSE Class-I local supplier" do not accept L-1 rates, then Para (iii) shall be followedprice. (iii) If conditions mentioned in sub paras 3(i) and 3(ii) above are not met i.e. L1 is not "MSE In case such lowest eligible Class-I local supplier" and "MSE supplier fails to match the L-I price, the Class-I local supplier" is not eligible to take benefit supplier with the next higher bid within the margin of purchase preference as per PPP-MSE Order or all "MSE shall be invited to match the L-1 price and so on and contract shall be awarded accordingly. In case none of the Class-I local supplier" do not accept supplier within the margin of purchase preference match the L-1 ratesprice, the contract is to may be awarded / purchase preference to be given in different possible scenarios as under:the L-1 bidder. A. L-1 is "MSE but non-Class-l local supplier" or "Non-MSE but a. The ‘Class-I local supplier": Contract be awarded to L-1. B. L-1 is "Non-MSE non-supplier/ Class-l II local supplier": Firstlysupplier at the time of tender, purchase preference bidding or solicitation shall be given required to eligible MSE as per PPPindicate percentage of local content and provide self-MSE Order. If MSEs not eligible or does not accept then purchase preference to be given to eligible Class- I Local supplier as per PPP-MII Order. If certification that the item offered meets the local content requirement for Class-I Local local supplier/ Class-II local supplier, as the case may be. They shall also give details of the location(s) at which the local value addition is made. b. In case of procurement for a value in excess of Rs. 10 crores, the Class-I local supplier/ Class-II local supplier shall be required to provide a certificate from the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing cost accountant or practicing chartered accountant (In respect of suppliers other than companies) giving the percentage of local content. c. False declarations will be in breach of the code of Integrity under Rule 175(1)(i)(h) of the General Financial Rules for which a bidder or its successor can be debarred for up to two years as per Rule 151 (iii)of the General Financial Rules along with such other actions as may be permissible under law. d. A supplier who has been debarred by any procuring entity for violation of this Order shall not be eligible for preference for procurement by any other procuring entity for the duration of the debarment. The debarment for such other procuring entities shall take effect prospectively from the date on which it comes to the notice of other procurement entities, in the manner prescribed under paragraph 19 (e) i to iii below. e. The department of expenditure shall issue suitable instructions for the active and smooth operation of this process so that. i. The fact of duration of debarment of violation by any procuring entity or from promptly brought to the notice of the Member-Convener of the standing committee and the department of the expenditure through the concerned ministry/ department or in some other manner. ii. On a periodical basis such cases are consolidated and a centralized list or decentralized lists of such suppliers with period of debarment is also maintained and displayed on website(s). iii. In respect of procuring entities other than the one which has carried out the debarment, the debarment takes effect prospectively from the date of uploading of the website(s) in such a manner that ongoing procurements are not eligible or does not accept then contract be awarded to L1disrupted.