VENDOR HOLIDAY
Delinquent suppliers shall be put under Vendor holiday for a specified period by “Standing Committee for Vendor Holiday” and the committee shall assess the time period of holiday on case to case basis in the following instances.
a. In situations other than force majeure, wherever applicable.
i. If he withdraws from the procurement process after opening of financial bids or after being declared the successful bidder. (In such case, Vendor holiday for a period of three years).
ii. If he fails to enter into procurement contract or fails to provide performance security or any other document or security required in terms of the bidding documents after being declared as successful bidder.
b. In case of litigation.
c. Due to poor performance.
d. Firm has no longer the earlier assessed technical staff or equipment.
e. Violation of the terms & conditions specified during bidder registration and the contractual obligation if any.
f. Poor vendor rating.
g. False declaration either to GSL or to any other Government Department or Agency.
h. Continuous Lack of response.
i. Firm ceases to exist or becomes bankrupt.
I Firm has been acquired by or merged with another firm and there is no clarity in honoring the contractual obligations against the orders placed by GSL.
j. Firm switched over to other sector of business operation and there is no clarity in honoring the contractual obligations against the orders placed by GSL.
k. Firm has breached the code of conduct stipulated in Chapter 29.
l. Firm has been debarred by CVC or by other Govt. institutions or other DPSUs and the relevant written information is available in GSL.
STANDING COMMITTEE
In line with MOD’s directive, as per Minutes of Meeting dtd. 27 Jul 07, promulgated vide MOD ID No. 9(1)/2007/D(SY), dated 25 Oct 07, the following committee shall be constituted to assess periodically the quantum of ‘Vendor Holiday’ to be imposed on delinquent vendors:
| a) CGM (Senior most) | Chairman | From Technical Stream |
| b) HOD (F) | Member | |
| c) HOD (Plg/SR&GES/ Comm/SMP) | Member | HOD from Vendor Holiday recommending Dept. |
| d) HOD (TS) | Member | |
| e) HOD (QA&MR) | Member | |
| f) Dealing officer | Member Secretary | From Vendor Holiday recommending Dept. |
| g) Rep – IHQ(N) | Member | In case of IHQ (N) nominated/recommended/ empanelled vendors only. |
| h) Rep – DQA (WP/N) | Member | -Do- |
| i) Rep – CGHQ | Member | In case of CGHQ nominated/ recommended/ empanelled vendors only |
TERMS OF REFERENCE:
a) To examine on a case to case basis the performance of delinquent vendors based on both the past performance and current deficiencies, which have been noticed in execution of the present order.
b) To ascertain response of the vendor and possible reasons as to why the situation has arisen.
c) To verify if the firm have indulged in quality compromises.
d) To check gravity of failure or failure in the product support.
PROCEDURE
The dealing officer from the concerned department shall put up a proposal to the Standing Committee for putting any delinquent vendor on Vendor Holiday, for which, the following inputs would be necessary for consideration :
a) External factors contributing to defaults by the vendor.
b) Availability of other vendors in the Vendor Registration List
c) Availability of other vendors indigenously and overseas.
d) Pre-requisites of GSL/IHQ, MOD (N)/CGHQ to develop alternate source.
e) Void of competition.
f) Any other factor requiring consideration.
The committee shall meet once every quarter on need basis and address all cases, which may have arisen in the past 3 months. Each case shall be examined based on past records of performance. The complaint shall be analyzed to assess the nature of delinquency and corrective measures taken by vendor to rectify the same. It shall also study whether the vendor is a habitual defaulter or not. A fair opportunity must be given to vendors to present their case either through direct interaction or through correspondence. The gravity of the case shall determine the disciplinary measures required to be taken.
RECOMMENDATIONS
On completion of the above, the committee, based on the analysis, may recommend ‘Vendor Holiday’ for a period not exceeding 3-years. Upon approval of the recommendations of the Standing Committee by the management, GSL decision shall be intimated to all concerned that includes the concerned vendor, MOD, IHQ (N), CGHQ, and DGQA besides other DPSUs.
On completion of the Vendor Holiday period of delinquent vendor, the dealing officer from the concerned dept shall initiate action for review and reinstatement if required based on a request from the vendor along with performance report, obtained from other DPSUs or PSUs. On completion of the review after 36 months, if it is found that the vendor still fails to establish an improvement in the performance, an action for de-registration of such vendor shall be initiated. The de-registration can be temporary or permanent.
TEMPORARY DEREGISTRATION
Based on the recommendation of the Standing Committee, approval of the concerned Director shall have to be obtained for temporary de-registration. The period of de-registration shall not exceed more than 3-years. It may be considered for the following reasons
a. Due to litigation
b. Due to poor performance even after putting on vendor holiday.
PERMANENT DEREGISTRATION
A notice may be issued to the firm seeking why the firm should not be de-registered permanently. After receipt of reply from vendor within a reasonable time and based on the recommendation of the Standing Committee, approval for such decision shall be obtained from CMD. This can be enforced for reasons stated at 29.1, (b) to (l). In all such cases a notice shall be issued to the vendor, under Registered Post, by the registration cell clearly stating the reason and action proposed.