Rate Contracting

The Right Product, The Right Quality, The Right Price!
The Activities of Rate Contract Section are regulated by Standing Committee (Supplies & Contracts)

Composition of the Committee
The constitution of this committee is as follows:

1 Chairperson, elected by the General Body, from amongst the Chief Executives representing the members.
2 Chief Executives of all member STU’s
3 Executive Director, ASRTU
4 Director, CIRT
5 Chairperson, Standing Committee (Tech & Stores)
6 Nine experts, chosen by the General Body
• Three from Accounts
• Three from Engineering
• Three from Stores
7 Head ERC, CIRT
8 Director (Tech), ASRTU, as Member Secretary.

Director (Tech) is the head of the Rate Contract Section, and also the Secretary. Standing Committee (S&C).

The Tendering

The main activity of the rate contracting section is to conclude contracts for supply of Auto Parts for Leyland and Tata buses, bus body repair items and items of general consumption, required by STUs, at competitive prices. The total requirement of these stores of the member STUs is approximately Rs. 8000/- Million p.a. There are about 15000 items covered under different item schedules. These schedules are divided into 68 main procurement groups. Tenders are invited from manufacturers in electronic mode only as per the Tender Calendar, once in four months for 12 to 13 group of items. Tenders are invited as per the ASRTU specifications, and in absence of ASRTU specifications, O.E. Specifications or B.I.S specifications are adopted. ASRTU specifications are formulated by a Sub-Committee with its headquarters at CIRT, Pune. The tenders received are considered by the Standing Committee (S&C) in the meeting. Tender Calendar gives the details of the main procurement groups and the tentative month in which the tenders will be invited. Wide publicity is given to the tender notice, in leading newspapers, Indian Journal of Transport Management, published by CIRT, Pune, and Auto Guide. Copies of the tender notices are also sent to the Directorate of Small Industries at an all India Level. These are also available on the Internet, through this site.

ASRTU invites National Competitive Bids and concludes Rate Contracts (RCs) for automobile spares and accessories common to all the STUs. ASRTU’s policy is to encourage quality and competition. For easy and quick access of the vendors to participate in tenders, ASRTU has introduced Electronic Tendering (E-tendering).

Awarding the Contract

It is compulsory for a firm to participate in the e-tender and submit the tender for consideration and for award of contract. The tenders are invited on ASRTU standard terms and conditions, which are non-negotiable. The rates quoted by the firm are also non-negotiable and contracts are established at the quoted prices, provided these are reasonable. The firm should have in-house manufacturing, testing and inspection facilities, as per the pre-decided norms of ASRTU to produce consistent quality products.

The works of the firm is inspected by a team of officers, nominated by ASRTU. Samples of the firm’s products are picked up by the officers, on behalf of ASRTU, from the supplies made by the firm, or from the production line of the firm, for testing at CIRT, Pune. The firm is considered for contract when the works inspection report, test reports are satisfactory, and if the prices quoted are competitive.

At present, the period of contract is two years. ASRTU also has a system of awarding Long Term Rate Contract (LRC) for six years, to established original equipment suppliers, as per the norms laid down