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April 5, 2020 7:33:35 PM IST
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Acceptance System of SubVendors

NTPC-Corporate Quality Assurance & Inspection System for Acceptance of SubVendors for bought out/outsourced items by the main contractors for corporate contracts awarded project packages

The Corporate contracts awarded packages for all the procurements against specific project requirements envisage that the bidders at the bidding stage should identify the list & scope of items/processes proposed to be bought out and out sourced and the respective subvendors are subject to acceptance of NTPC Corporate Quality Assurance. The subvendors proposed by the bidders for such identified bought out items/out sourced processes are tied up at the time of post bid discussions. Such mutually agreed list then forms a part of Letter of Award placed on the selected bidder and is required to be followed for the execution of the particular project package.

NTPC Corporate Quality Assurance department does not follow a system of sub vendor registration/empanelment/enlistment etc. independent of a project package contract.

While finalising the mutually agreed list at the time of the post bid discussions, the subvendors are identified, as per the proposal of the bidder either in the bid or during the post bid discussion, in two broad categories based on NTPC past experience with the proposed subvendors:

    (i) Accepted for the package contract (A)
    (ii) Details Required for consideration of acceptance(DR)

After the placement of award on the selected bidder (now the main contractor), the main contractor is required to furnish the details about the capacity and capability of the proposed DR subvendors including the past experience details, manufacturing & testing facilities etc. as per standard Vendor Detail format within a time bound programme.

Upon receipt of the details an objective assessment of the subvendor is carried out within a time bound programme and the acceptance or otherwise of the proposed subvendor is communicated to the main contractor for that particular project package contract.

During the execution of the contract, NTPC may consider the main contractor’s proposal of new sub-vendor under certain exceptional circumstances if it is in the overall interest of a particular contract package.

As such, in general, the vendor acceptance is valid with reference to a specific project package contract only in accordance to the specific proposal of the bidder/main contractor.

The system thus provides full liberty to the bidder/main contractor to choose the subvendors as per the requirements of the project package technical specification and capacity/capability assessment at their end and at the same time the main contractor remains fully responsible for the execution of the contract with the subvendors as per their own proposals.

Note: "The above term "sub-vendor" also includes "Sub-contractors". Also for Sub-vendor of critical equipments and sub-contractors of specialized works, a sub-qualification requirement is stipulated in the bidding documents."

A list of Frequently Asked Questions along with their answers, are compiled herewith for reference of subvendors.

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