Content .. 59 60 61 62 ..

INDIAN RAILWAYS MAINTENANCE MANUAL FOR DIESEL LOCOMOTIVES - PART 61

Document No:

Chapter –10 Outsourcing & Contract Management

Version No: 1.0-d0

Date Issued: dd/mm/yyyy

Document Title: MANUAL MAINTENANCE FOR DIESEL LOCOMOTIVES

Revised 2013

Printed: 2015/03/08

Page 236 of 303

10.3.1.8

Scrap and Waste Disposal (including hazardous waste)

10.3.1.9

Operation and Maintenance of ETP

10.3.1.10  Operation and Maintenance of Incinerator
10.3.1.11  Transportation of Material by Road Trucks
10.3.1.12  Maintenance of M&P
10.3.1.13  Maintenance of Engineering Infrastructure (including buildings and track)
10.3.1.14  Maintenance of electrical fittings, switches, wiring/cable, etc.
10.3.1.15  Security of Shed Premises

10.3.2

Specific Activities for Alco Loco Shed

10.3.2.1  Maintenance and Overhauling of Compressors through OEM
10.3.2.2  Maintenance and Overhauling of MEPs through OEM
10.3.2.3  Maintenance and Overhauling of MCBGs/WW Governors through OEM
10.3.2.4  Overhauling of PTLOCs through OEM
10.3.2.5  Reclamation and Overhauling of Bogies
10.3.2.6  Overhauling of Moatti Filters through OEM
10.3.2.7  Reclamation and Overhauling of High Efficiency Turbo Super Chargers through

OEM

10.3.2.8 Overhauling of Air Brake Valves through OEM
10.3.2.9 Maintenance and Overhauling of Air Dryers through OEM

10.3.2.10  Maintenance and Overhauling of CCB through OEM
10.3.2.11  Maintenance and Overhauling of Traction Alternators through OEM
10.3.2.12  Maintenance and Overhauling of Traction Motors through OEM
10.3.2.13  Maintenance and Overhauling of Auxiliary Rotating Machines/Motors through

OEM

10.3.2.14 Overhauling of Power Pack of locos
10.3.2.15 Overhauling of Engine Assemblies (cylinder heads, FIPs, Injectors, Water Pump,

Lub Oil Pump, etc.)

10.3.2.16 Overhauling of RTTM blowers through OEM
10.3.2.17 Overhauling of loco accessories (FTTM blowers, ECC, Right Angle Gear Box,

Radiator Fan, Radiators, etc.)

10.3.3

Specific Activities for EMD Loco Shed

10.3.3.1  Maintenance and Overhauling of Compressors through OEM
10.3.3.2  Maintenance and Overhauling of TCCs through OEM
10.3.3.3  Maintenance and Overhauling of MCBGs/WW Governors through OEM
10.3.3.4  Overhauling of Lube Oil Coolers through OEM
10.3.3.5  Reclamation and Overhauling of Bogies
10.3.3.6  Reclamation and Overhauling of Turbo super chargers through OEM
10.3.3.7  Maintenance and Overhauling of Air Dryers through OEM
10.3.3.8  Maintenance and Overhauling of CCB through OEM
10.3.3.9  Maintenance and Overhauling of Traction Alternators through OEM

10.3.3.10 Maintenance and Overhauling of Traction Motors through OEM
10.3.3.11 Maintenance and Overhauling of Auxiliary Rotating Machines/Motors through

OEM

10.3.3.12 Overhauling of Power Pack of locos
10.3.3.13 Overhauling of Engine Assemblies (Power Assembly, Unit Injectors, Water

Pump, Lube Oil Pump, etc.)

10.3.3.14 Overhauling of RTTM blowers through OEM

Home

Ch-10

Draft

Document No:

Chapter –10 Outsourcing & Contract Management

Version No: 1.0-d0

Date Issued: dd/mm/yyyy

Document Title: MANUAL MAINTENANCE FOR DIESEL LOCOMOTIVES

Revised 2013

Printed: 2015/03/08

Page 237 of 303

10.3.3.15 Overhauling of loco accessories (Radiator Fan, Radiators, etc.)

10.4 Contract Management

10.4.1

Normal contracting is a lengthy and complex process as lot of variables are
involved in this. Shed officials do not have much expertise in dealing with tenders.
But, as mentioned above, with proliferation of outsourcing the contracting is bound
to increase manifold. Hence, it is important that shed officials remain aware of the
nitty-grities of tendering and contract management. In this regard reference to
Chapter on “Tenders and Contract Management” of New Mechanical Code, under
issue, may be made to get more details on this subject.

10.4.2

At the same time, it is a fact that most of the specific activities of
maintenance/overhauling of loco assemblies/system through OEM are of Pan- India
nature. Hence, Rate contract for such maintenance/overhauling shall be finalized by
Centralized Agencies like DLW/DLMW/ICF, or other agencies as nominated by
Board. This will greatly help in ensuring uniformity of rates and other terms and
conditions. Also, since volume will be higher, better price and terms & conditions
can be negotiated with the OEM, who will find it easier to deal with one agency for
contract finalization.

10.4.3

Such Rate Contracts for AMCs/Overhauling Contract should be for a period of at
least 2-3 years.

10.4.4

Such Rate Contracts should be operated by Shed in-charges after getting
administrative approval and sanction from CME/CMPE (for proposals of total value
prescribed in the SOP) with their associate finance concurrence. Administrative
approval/sanction by CME/CMPE shall be given duly considering the need for
operation of rate contract, keeping in view the local conditions.

10.4.5

Each shed shall have a dedicated “Contract Management Cell” for processing and
managing the contracts.

10.4.6

Contracts shall be based on the concept of minimum acceptable performance level
of availability / reliability. Suitable penalty clauses shall be built into the contract
in case of violation / non-achievement of the specified performance level.

10.4.7

In  the  system  of  service  contract,  the  user  (PU,  a  workshop  or  a  diesel  shed,  for
example)  enters  into  a  running  contract  with  a  service  provider  who  refurbishes
sub-assemblies  or  major  parts  for  the  Railways. The  system  is  based  on  statistical
average  for  refurbishment  rather  than  on  measurements  of  the  work  content  in
individual  pieces. The  contractor  is  expected  to  carry  out  refurbishment  of
assemblies  given  to  him  at  fixed  contract  prices  regardless  of  the  actual  work
content in each piece. A model on these lines exists in DMW which awards works
contracts for rehabilitation / refurbishing of ABB turbochargers.

10.4.7.1 In such contracts the benefit to the Railways is that it gets sub-assemblies repaired

at  fixed  prices. It  is  noteworthy  that  the  refurbished  sub-assemblies  come  with
warranty  as  new. It  is  upto  the  contractor  to  either  refurbish  the  sub-assembly
thoroughly or in some cases  replace  it with  a  new  one. As far  as Railways  are
concerned, the quality and reliability is identical in both cases.

Home

Ch-10

Draft

Document No:

Chapter –10 Outsourcing & Contract Management

Version No: 1.0-d0

Date Issued: dd/mm/yyyy

Document Title: MANUAL MAINTENANCE FOR DIESEL LOCOMOTIVES

Revised 2013

Printed: 2015/03/08

Page 238 of 303

10.4.7.2 The benefit to the contractor would be that he gets order for an assured quantity

and often for a period of 2-3 years. He would, therefore, be motivated to invest
in equipment and systems in his plant. The OEM of the sub-assembly is a
natural candidate for such contracts though it may not be necessary in all cases.

10.4.8

Sufficient unit exchange spares must be maintained by sheds so that sufficient
quantities can be offered for overhauling and repair through outsourcing.

10.4.9

A unified computerized contract management system should be developed for close
monitoring  and  accounting  of  outsourcing  activity.  There  should  be  online  bill
submission  and  clearance  for  transparency.  Also  the  performance  and  penalties  of
the  contractors  can  be  displayed  online  on  diesel  portal  –  so  that  effective
monitoring can take place.

10.4.10

All outsourcing contracts should preferably be comprehensive, including cost of
parts to be changed, both must and condition basis, so that benefit by reduction in
inventory and procurement cost of material can be realized.

10.4.11

The activities outsourced by various sheds, other than those being operated on
Centralized Rate Contracts, should be hosted on a common diesel portal. This will
help in dissemination of information and comparison of prices for
maintenance/overhauling of various activities and as well help in quick adoption of
same by other sheds. This will help in achieving synergy amongst sheds, saving of
time and efforts of others.

10.4.12

Outsourcing activity is meant for value addition and cost cutting in maintenance.
Therefore, the advantages accrued by such outsourcing should be documented for
monitoring the efficacy of the activity.

10.5 Important Points to be considered in Contract Management

10.5.1

Proposal Stage:

10.5.1.1 Justification should contain the requirement to outsource and savings to Railways

by Outsourcing.

10.5.1.2 Proposal should be very clear in scope of work which needs to be outsourced.

10.5.1.3 The cost analysis should be done on the basis of open market rates, minimum

wages to labour, and previous rates for similar or same contracts.

10.5.1.4 Detailed estimate should contain the costing of each individual item.

10.5.1.5 Sanction of competent authority as per SOP to the detailed estimate.

10.5.1.6 Adding of items not in the estimate at the proposal stage is very difficult once the

concurrence from Finance and sanction of Executive Officer has been obtained.

Home

Ch-10

Home

Ch-10

Draft

Document No:

Chapter –10 Outsourcing & Contract Management

Version No: 1.0-d0

Date Issued: dd/mm/yyyy

Document Title: MANUAL MAINTENANCE FOR DIESEL LOCOMOTIVES

Revised 2013

Printed: 2015/03/08

Page 239 of 303

10.5.2

Tendering Stage:

10.5.2.1

Prepare Tender schedule carefully

a) Think how would you carry out the work if the contract was given to you as a

private person. The exact step by step procedure for carrying out any activity in
the contract should be clearly understood and preferably written down in
background papers. The scope of work for contractor should then be clearly
defined in the tender document.

b) Think what is the expectation of Railways from the contract and what assistance

will be given by Railways and what items, manpower, etc., will be under the
scope of contractor. It should be clearly specified whether the supporting
infrastructure required, supply of consumables, any other facility/material
required will fall in scope of contractor or Railways? If the onus is on Railways
to supply/provide; cost (if any) and method of cost recovery should be clearly
mentioned.

c) Ideally, General Conditions of Contract should be left unchanged/untampered.

10.5.2.2 Specific requirements for a particular contract such as what work exactly is to be

done, how it should be done, how the resources will be arranged, how the
measurement of work will be done, what action can be taken by Railways in
case of default, etc., should be listed out in detail under Special Conditions of
Contract and added to the GCC separately.

10.5.2.3 The final result expected should be clearly mentioned. It should also be clearly

mentioned:

a) Who will measure the result? (i.e. nominate with clear designation at suitable

level- SSE, SE, JE etc)

b) Where and when will the results be measured? (i.e. location and at what stage of

work completion)

c) How will the results be measured? (i.e. what are the tools/equipments required

for testing the quality as well as quantity of the work done and what procedure
will be followed?)

d) What shall be acceptable limit in terms of quality? (Once method of measuring

quality is defined, the limits for accepting/rejecting the work should also be
mentioned to avoid any ambiguity)

10.5.2.4 In most cases, a certain methodology/procedure for carrying out an activity is

desired. In such cases, the methodology/procedure to be followed by the
contractor for the particular activity should be clearly spelt out in the tender
schedule.

10.5.2.5 Once procedure to be followed by contractor is laid down, verification is required

to ensure that no shortcuts are being adopted by the contractor. To verify this,
the following aspects should be clearly spelt out in tender schedule:

Home

Ch-10

Draft

Content .. 59 60 61 62 ..