ASRTU Vendor Development Registration Scheme (VDRS) About ASRTU

1.1 The Association of State Road Transport Undertakings (ASRTU) is the apex coordinating body representing 62 State Transport Undertakings (STUs) in India. The STUs operate 1.47 lakh buses serving 70 million passengers every day and provide gainful employment to 1 million people.

1.2 The member STUs purchase spares worth Rs.2000 crores a year on the basis of contracts finalized by ASRTU with nearly ? manufacturers.

1.3 ASRTU, as a coordinator, establishes Rate Contracts/Trial Rate Contracts/Long Term Rate Contracts with quality automotive spare parts manufacturers on behalf of all member STUs. On the basis of rates, terms and conditions finalized by ASRTU, the member STUs procure automotive spare parts directly. So far, ASRTU has finalized nearly 400 contracts for 100 groups of items.

1.4 ASRTU, which has grown along with its members, has initially been concentrating on procurement of quality spares at the most reasonable price. With the creation of the Central Institute of Road Transport (CIRT) under the ASRTU, quality assurance of components and development of their specifications through the process of reverse engineering were brought in as additional common facilities for the members.

Besides the huge Infrastructural facilities, the CIRT is an ISO 9001 institution is equipped with sophisticated automobile component testing laboratories recognized by the Bureau of Indian Standards for testing a wide range of automobile components. ASRTU relies on the test reports of CIRT while awarding contracts to automobile component manufacturers.

The joint endeavor of ASRTU and CIRT for monitoring the quality of auto parts has stood the test of time and has become an indispensable input for upgrading quality and ensuring cost effectiveness.

1.5 With a view to serve the members more effectively by providing them with a wider choice of quality suppliers at the most competitive rates, ASRTU has always been, encouraging new suppliers to come under the ASRTU Contracts umbrella for effecting supplies of spares to the member STUs.

For this purpose, ASRTU has introduced a Vendor Development Registration Scheme (VDRS). 1.6 ASRTU is maintaining a Website at www.asrtu.org. At this site, one can have access to more information on ASRTU and CIRT, their activities, physical and financial performance of STUs for the past five years, items on RC, Names, Addresses & other important details of the present RC holders and about their products. 2.0 Award of Contracts ? Procedural Outlines. 2.1 ASRTU at the time of finalization of Contracts with established manufacturers, inter-alia, follows the process given below.

2.2 All contracts are finalized by a permanent Committee called Standing Committee (Supplies & Contracts) shortly, SC(S&C) constituted by the General Body of ASRTU every year at its Annual General Meeting. This Committee consists of the Chief Executives of all member undertakings and expert members in Engineering, Stores and Finance. It functions through its Secretariat headed by the Director (Technical) who is the ex-officio Secretary to the Committee.

2.3 On behalf of the member STUs, the Secretary, SC (S&C) invites tenders for Auto Parts and other accessories applicable for Tata and Leyland Passenger vehicles and also for other general items such as Paints, Tyre Retreading Materials, Tyres, Tubes, Flaps etc. Tenders are invited according to a calendar for specific groups of items once in two years for each group through advertisements in leading English newspapers. The notice inviting tenders is also published in Indian Trade Journal(ITJ). Notices are also sent to those firms who had quoted for the specified groups of items in the previous tender enquiry/registered under ASRTU?s

Vendor Development Registration Scheme, purely as a matter of courtesy. 2.4 The SC (S&C) meets periodically and decides on the tenders received and establishes contracts for a period of two years or as the case may be. It also has a system of contracts for longer periods with established/manufacturers/original equipment suppliers as per the norms laid down. 2.5 The SC (S&C) also constitutes different Sub-Committees as may be needed to facilitate its decision making such as Sub-Committee on Oils, Sub-Committee on Aluminium Sheets, and Sub-Committee on Policies, etc. apart from the permanent Sub-Committees on Price Revision, claims, and specifications.

2.6 As a prerequisite, any firm, which wishes to come on contract with ASRTU has to participate in the tender enquiry. The firm has to purchase the tender documents related to its products when it is on sale and submit the same, duly completed in all respects, on or before the due date and time. 2.7 The SC(S&C) decides on the tenders and establishes contracts with such selected tenderers. 2.8 ASRTU establishes the Contracts with quality automotive spare parts manufacturers only. 2.9 ASRTU contracts are established on the ASRTU specifications which are finalized by the ?

Specifications Sub-Committee?. For the items for which ASRTU specifications are not available, the contracts are established on BIS specifications, O.E. specifications etc? 3.0 Consideration of tenders 3.1 The SC (S&C) decides individual tenders based on s standard laid down principles, policies, procedures and practices which enhances the value of the Contracts. In the case of existing contract holders, the quality of their supplies, field performance, ability to supply within delivery schedules, terms of payment, prompt payment of rebate, test results etc.

are considered. 3.2 The tenders of new entrants and the firms not approved for a particular sub-group of main group of items application-wise (Tata & Leyland separately) are placed before the SC (S&C) for consideration only after receipt of works inspection report and required number of test reports. If the items quoted by the firm are not being currently tested at CIRT, Pune then the tenders of new entrants are considered on the basis of Works Inspection Reports and field performance reports received from STUs. If the requirements of works inspection and testing are not completed at the time of consideration of tenders, then such tenders are considered only after a lapse of one year i.e. in the 3rd successive meeting of SC (S&C).

3.3 The tenders of new entrants, who are OE Suppliers to M/s Ashok Leyland Ltd., M/s Tata Motors Ltd. and TS-16949 certified suppliers for the items covered in the tender schedule, are placed before the SC (S&C) without the pre-requisites of works inspection reports and test reports and the same would be carried out simultaneously during the contract period. 3.4 For finalization of tenders and award of contract to any manufacturer, the SC(S&C) considers following aspects amongst others: 3.4.1 The Works Inspection Report establishing the capacity and capability of the firm to manufacture requisite quality spares on a sustainable basis. The Works Inspection is carried out by a designated team of officials on behalf of ASRTU, to assess the financial soundness, besides production and inspection facilities of the firm.

As per the norms of works inspection, the firm must have certain minimum inhouse manufacturing, testing and inspection facilities. 3.4.2 The quality of the firm?s products as reflected in the Laboratory tests conducted at CIRT, Pune or any other Laboratory approved by the SC (S&C). 3.4.3 As per the policy, test reports as per requirement shall be available for the products/materials under each Group/Sub- groups application-wise (i.e. Tata and Leyland) tested from production line/out of supplies to STUs for consideration of the Tender. 3.4.4 The field performance reports on the products of the firm given by the members to whom the firm has effected supplies. 4.0 Need for Vendor Development Registration Scheme 4.1 The process of undertaking the above activities of works inspection, sample testing, field trials by member STUs requires long cycle time ranging up to 6- 8 months. For any firm desirous of entering into contracts with the ASRTU, the said activities if commenced on receipt of the tenders, would delay the process of award of contract to them as compared to the firms applying for renewal/upgradation of their existing contracts.

4.2 In order to facilitate timely completion of these activities for the new entrants, the ASRTU follows a scheme called Vendor Development Registration Scheme (VDRS). 4.3 Under this scheme, the prospective tenderers are given adequate lead time for getting their works inspected & samples tested besides obtaining field trial reports of their products from the STUs.

The prospective tenderers also get sufficient lead time to make up the deficiencies if any observed during works inspection with respect to their facilities/plant/equipment?s etc., in addition to getting additional samples tested in the event of failure of any of the initial samples in laboratory tests. The scheme is described in the following paragraphs. 5.0 Vendor Development Registration Scheme (VDRS) 5.1 VDRS envisages advance action towards inspection and evaluation of a firm?s capabilities to supply quality automobile spares on sustainable basis well before establishment of a formal contract between the firm and ASRTU. 5.2 The scheme provides sufficient lead time for both the parties for the above work besides providing for rectification of deficiencies if any in the firm?

s facilities and for re-evaluation of the same by the ASRTU. 5.3 Any firm desirous of entering into contract with ASRTU can register itself under Vendor Development Registration Scheme (VDRS) to complete the pre-requisites of consideration of tenders i.e. Works Inspection and Testing of random samples. 5.4 Under the VDRS, ASRTU arranges inspection of the firm?s works and testing of the manufacturer?s products at CIRT, Pune. The test charges as per the applicable rate schedule of CIRT are to be paid by the manufacturers. The cost of material, packing, forwarding & transportation charges etc.

of sealed samples are borne by the firm. 5.5 A ?step by step procedure? for registration under VDRS is described here in below: I. a) For registration under VDRS, the firm shall submit an application on its letter head, requesting ASRTU for supply of necessary formats for the purpose (necessary documents, specifications etc.). b) The firm has to indicate its products range and identify products for which it seeks registration under the scheme. c) This application has to be accompanied with a demand draft of Rs. 5000/- + applicable Service Tax or as specified by ASRTU in favour of ?The Executive Director, ASRTU, New Delhi? payable at New Delhi. Demand Draft details such as Demand Draft no., date, amount and name of the Bank, need to be mentioned in the application. d) The application be submitted at the address mentioned at para 7.0 of this Section. II.

On receipt of the application and demand draft, the ASRTU shall dispatch the following documents at its registered office address or as desired a) Vendor Development Registration Scheme booklet. b) VDRS Registration Application Form. c) Works Inspection Proforma d) Schedule of relevant Items. e) Set of relevant ASRTU Specifications and test charges applicable sub-group wise. III. After studying the documents, the firm should carefully fill-up all the formats giving full details against every item and submit the same to ASRTU for further processing. The following documents need to be submitted by the firm at this stage. a) VDRS Registration Application Form duly filled-in. b) Works Inspection Proforma in duplicate duly filled-in. c)

List of manufacturing machinery/equipment installed and working (in Annex-I of the works inspection proforma). d) Details of testing and inspection facilities available (in Annexure-II of the works inspection proforma). e) Copies of the relevant documents as per the check list provided with the works inspection proforma. f) List of items manufactured for Tata and Leyland bus applications along with part number (wherever applicable) or general items used for maintenance of buses, as the case may be. g) Works inspection charges of Rs. 2000/- + applicable Service Tax or as specified by ASRTU per factory per location by way of demand draft drawn in favour of ?

The Executive Director, ASRTU, New Delhi? payable at Delhi along with works inspection proforma duly filled-in (the demand draft details such as demand draft number, date, amount and name of the Bank be mentioned in the application form). h) Testing charges as applicable at the time of submission of documents to this office, be sent by way of demand draft drawn in favour of ?

The Executive Director, ASRTU, New Delhi? payable at New Delhi, ( the demand draft details such as demand draft number, date, amount and name of the Bank be mentioned in the application form) IV. a) After receipt of the works inspection charges and test charges, ASRTU will arrange for inspection of the works and collection and sealing of samples, for testing, from the production line of the firm.

b) The sealed samples shall be sent to the Director, Central Institute of Road Transport, Pune-Nasik Road, Bhosari, Pune ? 411 026 by the firm at its own cost. c) As per the policy, requisite test reports shall be available for the products under each group/sub-group, tested from production line at the time of consideration of the tender by the SC (S&C).

Samples of different items (generally specified by ASRTU) need to be offered by the firm from each subgroup for this purpose. d) If samples of same item (when different items are not available) are offered, then the samples are to be sealed from different batches of production on different dates maintaining a minimum gap of 30 days between the two samples. e) Procedure for sample collection & dispatch on behalf of ASRTU. i.

The random samples, on behalf of ASRTU, from production line are to be collected and sealed by ASRTU/STU Officers in the presence of the Manufacturer/his representative. ii. The random samples are to be jointly sealed by the representative of STU/ASRTU and the Manufacturer/his representative. iii. The samples shall be sent directly to the Director, Central Institute of Road Transport, Pune Nasik Road, Bhosari, Pune ? 411 026 at the cost of the firm under intimation to the Assistant Director (Testing), ASRTU. iv. The firm shall take care of following points for dispatch of samples to CIRT, Pune. a) Firm shall mention following details in its letter while sending the samples to CIRT, Pune under intimation to the Assistant Director (Testing), ASRTU. a. Original ASRTU letter no.

& date for testing of random samples of their products/materials. b. Sample Test order number. c. Details of samples sealed along with part nos. (wherever applicable), specification no. and quantity. d. Details of Test Charges sent/to be sent to ASRTU New Delhi/CIRT, Pune. b) Seal & signature of the Officer(s) must be distinctly visible on the sample/carton while sending the random samples. c) The samples which have been sealed be sent to Director, CIRT, Pune within 15 days of sealing by STU/ASRTU Officers. d) The parcels of sealed samples be sent by Courier/Road Transport on door delivery basis to CIRT, Pune. e)

Freight be prepaid at the Consigner?s end. f) Dispatch documents shall invariably include a Delivery Challan/Note. g) The Consignment note or way bill or lorry receipt as well as the delivery note or challan would invariably be marked ?sample for destructive testing only and item of no commercial value? or a separate certificate to this effect be sent with the consignment. h) CIRT, Pune has been exempted from payment of octroi duty by Pimpri Chinchwad Municipal Corporation in whose locality the Institute is located.

For issue of octroi duty exemption certificate, the Transporter may be asked to contact CIRT?s ?Customer Service Section?. i) As per the procedures laid down, the samples once sent for testing to CIRT, will not be returned to the Manufacturer. V. a) Copies of sample test reports received from CIRT, Pune/ any other details as considered by the ASRTU shall be communicated to the firm for necessary corrective actions. b)

Should re-inspections of the firm?s facilities be requested by the firm after rectification of the deficiencies etc., ASRTU shall organise re-inspection of the firm?s works on receipt of a request from the firm in writing for this purpose and the re-inspection charges of Rs.2000/- per Procurement/per location or as specified by ASRTU, in the form of demand draft drawn in favour of ?The Executive Director, ASRTU, New Delhi? payable at New Delhi, c)

The test reports and works inspection reports remain valid for a period of three years from the date of testing and two years from the date of inspection respectively. VI. a) In case Works Inspection Report is satisfactory and the products pass the prescribed laboratory tests then ASRTU would request member STUs to consider placement of trial orders on the firm and report the field performance of the firm?s products. b)

The firms so registered under VDRS are expected to have an advantage of reduced lead time requirement for completing the requisite conditions for consideration for award of ASRTU contracts. 6.0 Although registration under the VDRS is not a prerequisite for participation in ASRTU tenders as and when called for, the firms registered under VDRS would be informed with such notice inviting tenders.

Non receipt of such information, however, will not exempt the firms for any of the requirements of the tenders. Every firm intending to participate in the tender enquiry should invariably remain up-dated about the issue of such tender notice through newspaper or otherwise. 7.0 All communication with regard to registration etc. under the VDRS should be made on the following

address: The Director (Technical) Association of State Road Transport Undertakings, ASRTU Bhawan, Plot No.4-A, PSP Block, Pocket 14, Sector-8, Dwarka, New Delhi-110 075

Phone: 011-43294294 (30 lines) E-Mail: adtesting@asrtu.org Website: