PRE CONTRACT INTEGRITY

General
This pre-bid pre-contract Agreement (hereinafter called the integrity pact) is
made on ____________ day of the month of ____________ between , on one
hand, the commissioner of KVS acting through ___________________
Designation of the officer KV/RO/ZIET/KVS(HQ) (hereinafter called the “BUYER
“,which expression shall mean and include, unless the context otherwise
requires ,his successors in office and assigns) of the First part and
_____________________________________________ represented by
________________________________ (hereinafter called the’’ BIDDER
/SELLER’’ which expression shall mean and include ,unless the context
otherwise requires ,his successors and permitted assigns ) of the second part.
Whereas the BUYER proposes to Procure (Name of the Stores/
Equipment/Item) and the BIDDER /Seller is willing to offer/has offered the
stores and
Whereas the Bidder is a Private Company/ Public company/Government
undertaking/ partnership/registered export agency, constituted in accordance
with the relevant law in the matter and the BUYER is a ministry/ Department
of the Government of India/PSU performing its functions on behalf of the
President of India .
Now , therefore,
To avoid all forms of corruption by following a system that is fair, transparent
and free from any influence/ Prejudiced dealing prior to ,during and
subsequent to the currency of the contract to be entered into with a view to:-

Enabling the BUYER to obtain the desired said Stores/equipment at a

competitive price in conformity with the defined specifications by avoiding the
high cost and the distortionary impact of corruption on public procurement,
and

Enabling BIDDERs to abstain from bribing or indulging in any corrupt practice in

order to secure the contract by providing assurance to them that their
competitors will also abstain from bribing and other corrupt practices and the
BUYER will commit to prevent corruption, in any form ,by its officials by
following transparent procedures.
The parties here to hereby agree to enter into this integrity pact and agree as
follows:
Commitments of the BUYER
1.1 The BUYER undertakes that no official of the BUYER, connected directly
or indirectly with the contract, will demand, take a promise for or
accept, directly or through intermediaries, any bribe, consideration, gift,
reward, favour or any material or immaterial benefit or any other
advantage from the BIDDER, either for themselves or for any person,
organisation or third party related to the contract in exchanges for an
advantage in the bidding process, bid evaluation, contracting or
implementation process related to the contract.
1.2 The BUYER will, during the pre-contract stage, treat all BIDDERs alike
and will provide to all BIDDERs the same information and will not
provide any such information to any particular BIDDER which could
afford an advantage to that particular BIDDER in comparison to other
BIDDDERs.
1.3 All the officials of the BUYER will report to the appropriate
government office any attempted or completed breaches of the above
commitments as well as any substantial suspicion of such a breach.

2. In case any such preceding misconduct on the part of such official(s) is

reported by the bidder to the buyer with full and verifiable facts and the
same is prima facie found to be correct by the buyers , necessary
disciplinary proceedings , or any other action as deemed fit, including
criminal proceedings may be initiated by the BUYER and such a person
shall be debarred from further dealings related to the contract process.
In such a case while an enquiry is being conducted by the Buyers the
proceedings under the contract would not be stalled.
*2. In case any such preceding misconduct on the part of such official(s) is
reported by the BIDDER to the BUYER with full and verifiable facts and the
same is prima facie found to be correct by the BUYER, necessary disciplinary
proceedings, or any other action as deemed fit, including criminal proceedings
may be initiated by the BUYER and such a person shall be debarred from
further dealings related to the contract process. In such a case while an
enquiry is being conducted by the BUYER the proceedings under the contract
would not be stalled.

Commitments of Bidders
3. The Bidder commits itself to take all measures necessary to prevent corrupt
practices,unfair means and illegal activities during any stages of its bid or
during any pre-contract stage in order to secure the contract or in furtherance
to secure it and in particular commit itself to the following:-
3.1 TheBidder will not offer, directly or through intermediaries, any bribe ,gift,
consideration , reward ,favour, any material or immaterial benefit or other
advantage, commission, fees, brokerage or inducement to any official of the
BUYER, connected directly or indirectly with the bidding process , or to any
person , organisation or third party related to the contract in exchange for any
advantage in the bidding, evaluation, contractingand implementation of the
contract.
3.2 The Bidder further undertakes that it has not given, offered or promised to
give , directly or indirectly any bribe , gift, consideration, reward favour, any
material or immaterial benefit or other advantage commission, fees, brokerage
or inducement to any official of the BUYER or otherwise in procuring the
contract or forbearing to do or having done any act in relation to the obtaining
or execution of the contract or any other contracts with the Governments for
showing or forbearing to show favour or disfavour to any person in relation to
the contract or any other contract with the Government.

3.3 Bidders shall disclose the name and address of agents and representatives
and IndianBidders shall disclose their foreign principals orassociates.

3.4 Bidders shall disclose the payments to be made by them to agents /

brokers or any other intermediary, in connection with this bid / contract.

3.5 The Bidder further confirms and declares to the Buyers that the Bidder is
the original manufacturer/ integrator/ authorised government sponsored
export entity of the defence stores and has not engaged any individual or firm
or company whether Indian or foreign to intercede . facilitate or in any wayto
recommend to the BUYER or any of its functionaries, whether officially to the
award of the contract to the Bidder, nor has any amount been paid, promised
or intended to be paid to any such individuals, firm or company in respect of
any such intercession, facilitation or recommendation .
3.6 The BIDDER, either while presenting the bid or during pre- contract
negotiations or before signing the contract, shall disclose any payments he has
made , is committed to or intends to make to officials of the BUYER or their
family members , agents , brokers or any other intermediaries in connection
with the contract and the details of services agreed upon for such payments.
3.7 The Bidders will not collude with other parties interested in the contracts
to impair the transparency, fairness and progress of the bidding process, bid
evaluation, contracting and implementation of the contract.

3.8 TheBidder will not accept any advantage in exchange for any corrupt
practice, unfair means and illegal activities.

3.9 The Bidder shall not use improperly, for purposes of competition or
personal gain, or pass on to others , any information provided by the BUYER as
part of the business relationship , regarding plans, technical proposal and
business relationship, regarding plans, technical proposal and business details ,
including information contained in any electronic data carrier . The Bidder also
undertakes to exercise due and adequate care lest any such information is
divulged.

3.10 The Bidder commits to refrain from giving any complaint directly or
through any other manner without supporting it with full and verifiable facts
3.11 TheBIDDER shall not instigate or cause to instigate any third person to
commit any of the actions mentioned above.

3.12 If the BIDDER or any employee of the BIDDER or any person acting on
behalf of the BIDDER , either directly or indirectly, is a relative of any of the
officer of the BUYER , or alternatively , if any relative of an officer of the BUYER
has financial interest/ stake in the Bidder’s firm . The same shall be disclosed
by the BIDDER at the time of filing of tender.
The term ‘relative‘ for this purpose would be as defined in section 6 of the
Companies Act 1956.
3.13 TheBidder shall not lend to or borrow any money from or enter into any
monetary dealing or transactions, directly, with any employee of the BUYER .

4.Previous Transgression

4.1 TheBIDDER declares that no previous transgression occurred in the last

three years immediately before signing of this Integrity Pact .with any other
company in any country in respect of any corrupt practices envisaged
hereunder or with any Public Sector Enterprise in India or any Government
Department in India that could justify Bidder’s exclusion from the tender
process.

4.2 The BIDDER agrees that if it makes incorrect statements on this subject,
BIDDER can be disqualified from the tender process or the contract, if already
awarded, can be terminated for such reason.

5. Earnest Money (Security Deposit)

5.1 while submitting commercial bid , the Bidder shall deposit an amount ____
of Total amount ___________ (total amt. Rs. _________) (Bank of
Maharashtra) of Contract ( to be specified in RPF ) as Earnest Money / Security
Deposit,with BUYER through any of the following instruments:

1. Bank Draft or e- pay Order in favour of Principal Kendriya Vidyalaya

Karnal Vidyalaya Vikas Nidhi Account.
2. A confirmed guarantee by an Indian Nationalised Bank, promising
payment of the guaranteed sum to the Buyer on demand within three
 working days without any demur whatsoever and without seeking any
reasons whatsoever. The demand for payment by the BUYER shall be
treated as conclusive proof of payment.
3. Any other mode or through any other instrument (to be specified in the
RFP).

5.2 The Earnest Money/ Security Deposit shall be valid upto a period of
five years or the complete conclusion of the contractual obligations to the
complete satisfaction of both the BIDDER and the BUYER , including warranty
period , whichever is later .

5.3 In case of the successful BIDDER a clause would also be incorporated in

the Article pertaining to the performance Bond in the Purchase Contract that
the provisions of sanctions for violationshall be applicable for forfeiture of
performance bond in case of a decision by the BUYER to forfeit the same
without assigning any reason for imposing sanction for violation of this pact.

5.4 No interest shall be payable by the BUYER to the BIDDER on Earnest

money/ Security Deposit for the period of its currency.
6.Sanctions for Violation

6.1 Any breach of the aforesaid provisions by the Bidder or any one employed
by it or acting on its behalf (whether with or without the knowledge of the
Bidder ) shall entitle the Buyer to take all or any one of the following actions,
wherever required :-
1. To immediately call off the pre contract negotiations without assigning
any reason or giving any compensation to the BIDDER. However, the
proceedings with the other Bidder’s would continue.
2. The Earnest Money Deposits (in pre-contract stage) and /or Security
Deposit / performance Bond (after the contract is signed) shall stand
forfeited either fully or partially, as the decided by the Buyer. The Buyer
shall not be required to assign any reason therefore.
 3. To immediately cancel the contract, if already signed, without giving any
compensation to the Bidder.
4. To recover all sums already paid by the BUYER , and in case of an Indian
Biddder with interest thereon at 2% higher than the prevailing prime
lending rate of state Bank of India , while in case of a Bidder from a
country other than India with interest thereon at 2% higher than the
LIBOR . if any outstanding payments is due to the Bidder from the
Buyer in connection with any other contract for any other stores ,such
outstanding payments could also be utilised to recover the aforesaid
sum and interest .
5. To encash the advice bank guarantee and performance bond/warranty
bond, if furnished by the Bidder, in order to recover the payments ,
already made by the Buyer, along with interest.
6. To cancel all or any other contracts with the Bidder. The Bidder shall be
liable to pay compensation for any loss or damage to the Buyer resulting
from such cancellation/ rescission and the Buyer shall be entitled to
deduct the amount so payable from the money(s) due to the Bidder.
7. To debar the Bidder from participating in future bidding processes of the
Government of India for a minimum period of five years, which may be
further extended at the discretion of the Buyer.
8. To recover all sums paid in violation of this pact by Bidder(s) to any
middleman or agent or broker with a view to securing the contract.
9. In cases where irrevocable letters of credit have been received in respect
of any contract signed by the Buyer with the Bidder, the same shall not
be opened.
10. Forfeiture of performance Bond in case of a decision by the Buyer to
forfeit the same without assigning any reasons for imposing sanction for
violation of this pact.

6.2 The Buyer will be entitled to take all or any of the actions mentioned at
para 6.1 (1) to (10) of this pact also on the commission by the Bidder or any
one employed by it or acting on its behalf (whether with or without the
knowledge of the Bidder ), of an offence as defined in chapter ix of the Indian
Penal Code, 1860 or prevention of corruption Act ,1988 or any other statute
enacted for prevention of corruption.
6.3 The decision of the Buyer to the effect that a breach of the provisions of
this pact has been committed by the Bidder shall be final and conclusive on the
Bidder. However, the Bidder can approach the independent monitor(s)
appointed for the purposes of this pact.
7.Fall Clause

7.1 The Bidder undertakes that it has not supplied / is not supplying similar
product/ systems or subsystems at a price lower than that offered in the
present bid in respect of any other Ministry / Department of the Governments
of India or PSU and if it is found at any stage that similar product/ systems or
sub systems was supplied by the Bidder to any other ministry/ Department of
the Government of India or a PSU at a lower price, then that very price, with
due allowance for elapsed time will be applicable to the present case and the
difference in the cost would be refunded by the Bidder to the Buyer, if the
contract has already been concluded .

8.Independent Monitors

8.1 The Buyer has appointed independent Monitors (hereinafter reference to

as Monitors) for this pact in Consultation with the central vigilance Commission
(Name and addresses of the Monitors to be given).

8.2 The task of the Monitor’s shall be to review independently and objectively,
whether and to what extent the parties comply with the obligation under this
pact.
8.3 The Monitors shall not be subject to instructions by the representatives
Of the parties and perform their functions neutrally and independently.
8.4 Both the parties accept that the Monitors have the right to access all the
documents relating to the project/ procurement, including minutes of
meetings.
8.5 As soon as the Monitor notices, or has reasons to believe, a violation of
this pact, he will so inform the Authority designated by theBuyer .
8.6 The Bidder(s) accepts that the Monitor has the right to access without
restriction to all project documentation of the Buyer including that provided by
the Bidder. The Bidder will also grant the Monitor, upon his request and
demonstration of a valid interest, unrestricted and unconditional access to his
project documentation. The same is applicable to subcontractors. The monitor
shall be under contractual obligation to treat the information and documents
of the Bidder/ Subcontractor(S)with confidentiality.
8.7 The Buyer will provide to the Monitor sufficient information about all
Meeting among the parties related to the project provide such meetings
Could have an impact on the contractual relations between the parties.
The parties will offer to the Monitor the option to participate in such
Meetings.
8.8 The monitors will submit a written report to the designated Authority of
Buyer / Secretary in the Department/ within 8 to 10 weeks from the
Date of reference or intimation to him by the Buyer / Bidder and should
the occasion arise, submit proposals for correcting problematic
Situations.
9. Facilitation of investigation
In case of any allegation of violence of any provision of this pact
Or payment of commission, the Buyer or its agencies shall be entitled
to examine all the documents including the books of accounts of the
Bidder and the Bidder shall provide necessary information and docu-
-ments in English and shall extend all possible help for the purpose of
such examination .
10 .Law and Place of jurisdiction
This pact is subject to Indian Law. The place of a performance and
jurisdiction is the seat of the Buyer.
11Other Legal Action
The action stipulated in this integrity pact is without prejudice to any
Other legal action that may follow in accordance with the provision of
The extant law in force relating to any civil or criminal proceedings.
12 Validity
12.1 The validity of this integrity pact shall be from date of its signing and
Extend upto 5 years or the complete execution of the contract to the
Satisfaction of both the Buyer and the Bidder/Seller, including
Warranty period, whicheveris later. In case Bidderis unsuccessful,
This integrity pact shall expires after ___________ from the date of the
Signing of the contract.
12.2 Should one or several provisions of this pact turn out to be invalid; the
remainder of this pact shall remain valid. In this case, the parties will strive to
come to an agreement to their original intentions.
13. The parties hereby sign this integrity pact at Karnal on _______
BUYER BIDDER
Name of the officer Chief Executive officer
Designation
Deptt./PSU /Ministry
WitnessWitness
1. ……………………………………. 1. ……………………….

2. ……………………………………. 2. ……………………………….
 Provision of these clauses would need to be amended /
deleted in line with the policy of the Buyer in regard to
involvement of Indian agents of foreign supplier