SLA FOR EMPANELMENT OF LOCAL CHEMIST

Preamble

1. All Empanelment of Local Chemist contracts placed through GeM shall be governed by the following set of Terms and Conditions:
   1. General terms and conditions for Goods and Services.
   2. Service STC contained in this document
   3. BID / Reverse Auction specific ATC (additional term & conditions)
2. The above terms and conditions are in reverse order of precedence i.e. ATC supersedes Service specific STC which supersede GTC, whenever there are any conflicting provisions. 
3. This document represents the Special Terms and Conditions (STC) and the Service Level Agreement (SLA) governing the contract between the Buyer and Service Provider. The purpose of this document is to outline the scope of work, Stakeholder’s obligation and terms and conditions of all services covered as mutually understood by the stakeholders.                                                                                             

Objectives and Goal

The objective of this agreement is to ensure that all the contractual terms and conditions are in place to ensure consistent delivery of services to buyer by service provider. The goals of this agreement are to:

• Provide clear reference to service ownership, accountability, roles and responsibilities of both parties
• Present a clear, concise and measurable description of services offered to the buyer
• Establish terms and conditions for all the involved stakeholders, it also includes the actions to be taken in case of failure to comply with conditions specified
• To ensure that both the parties understand the consequences in case of termination of services due to any of the stated reasons mentioned in ATC, STC & GTC.

The agreement will act as a reference document that both the parties have understood the above-mentioned terms and conditions and have agreed to comply by the same. The agreement can also be revised/ modified on mutual consent of the stakeholders.

Stakeholders

The main stakeholders associated with this agreement are:

1. Buyer: Buyer is responsible to provide clear instructions, approvals and timely payments for the services availed
2. Service Provider: Service provider is responsible to provide all the required services in timely manner. Service provider may also include seller, supplier/bidder/contractor, any authorized agents, assignees, successors and nominees as per the context and as described in the agreement

The responsibilities and obligations of the stakeholders have been outlined in this document. The document also encompasses payment terms and penalties in case of non-adherence to the defined terms and conditions. It is assumed that all stakeholders would have read and understood the same before signing the agreement.

Service Scope

• The empanelled chemist will day to day/emergency supply the drugs/medicines, dressings and surgical consumablesat the agreed “Discount on MRP (%)” in the stipulated time against the indents issued by the buyer ustore to which the chemist is attached.

Terms and Conditions

Buyer’s Obligations

• The buyer, through the process of bid scrutiny and bid evaluation will determine to its satisfaction whether the Service Provider, whose bid has been determined as successful evaluated responsive bid is eligible, qualified and capable in all respects to perform the contract satisfactorily. If, there is more than one schedule of requirement, then, such determination will be made separately for each schedule.
• The service providers are registered on GeM based on self-declaration of valid Drug License. However, buyers must check and validate the details at their end for all applicable licenses and certifications e.g., validity and authenticity/genuineness of drug license, product certification, manufacturer certification/licenses, test reports etc.
• Buyer shall depute one team member for smooth coordination with the service provider.
• Buyer shall communicate their requirement such as day to day/emergencydrugs/medicine, dressings and surgical consumables and intimate the Service Provider in timely manner.
• Buyer shall ensure to clear the invoices raised by the service provider and timely payments be made as per the terms and conditions of the contract.

Service Provider Obligations

• The Service Provider is to be entirely responsible for the execution of the contract in all respects in accordance with the terms and conditions as specified in the acceptance of bid.
• The Service Provider shall not sublet transfer or assign the contract or any part thereof without the written permission of the buyer. In the event of the Service Providercontravening this condition, the buyer shall be entitled to place the contract elsewhere on the contractors account at his own risk and the service provider shall be liable for any loss or damage which the buyer, may sustain in consequence or arising out of such replacing of the contract.
• The Service Providershallalways maintain sufficient stock of the standard quality of medicines to avoid inconvenience to Buyer.
• The Service Providershall indicate Batch number, Name of manufacturer and Expiry date on indents at the time of supply.
• The empanelled chemist shall supply the drugs, dressingsand surgical consumables at the agreed “Discount on MRP (%)” in the stipulated time against the indents issued by the hospital/medical establishment/store to which the chemist is attached.
• The Service Provider should be Registered under Shops and Establishment Act/ Indian Partnership Act 1932 / Companies Act 1956.
• All mandatory licenses shall be valid during the contract period.
• The Service Provider must hold a valid license issued by Drug Controller Authority of the State for running the chemist shop/establishment. The successful Service Provider will further ensure that their Licenses remain valid till the end of the contract period.
• All Provision of Drug & Cosmetic act 1940 as amended till date and rules made there under will always be applicable on service provider.
• The Service Provider should have Non-conviction Certificate from the State Drug Controller and must be complied by the service provider as specified by buyer. The Non-Conviction Certificate should be dated not more than 6 months prior to date of publishing of Bid.
• Life Period: The shelf life of drugs/items supplied should not have passed more than half of shelf life from the date of manufacturing at the time of supply.
• Packing: The packaging should be done in compliance with legal metrology act and/ or legal compliances required, giving such legible details like expiry. date of manufacture, manufacturer details, batch No. Etc. Supplies are required to be made in original packing of manufacturer and in only available packing at recommended temperature range (cold chain to be maintained in transit), for the total quantity demanded for any particular medicine/drugs, on any particular day.
• Delivery of supplies: Date and time for delivery of stores shall be deemed as the essence of this contract and must be complied by the service provider as specified by buyer. If there be delay or refusal by local chemist(s), in which case the hospital can make alternative procurement at risk and expenses of the empanelled chemist(s) which means the purchase will be done from the chemist available in open market and the excess money paid will be deducted from the bills of chemist(s) empanelled.
• Quality of Medicines/drugs,dressingsand surgical consumables: The medicines/drugs, dressings and surgical consumables to be supplied will be of standard quality and must be complied by the service provider as specified by buyer. In case, it is found that any medicine/drugs have expired, or is sub-standard or spurious supplied by service provider,buyer shall also have the right to take appropriate legal actions.If for any unavoidable reasons beyond control, it is not possible for service provider to immediately supply the medicines and the hospital is compelled to procure the same from other service provider (Local Chemist), extra expenditure on this account will be recovered from subsequent bill(s)/performance security deposit.

Payment Schedule/ Payment Condition

• The payment shall be made as per the financial quotes submitted by the Service Provider and accepted by the Buyer.
• No advance payment shall be made to the Service Provider.
• The price quoted shall cover all aspects of service delivery The payment to the Service Provider will be made on monthly orquarterly basis, depending upon the actual duration of the services rendered as per order.
• Any violation of contractual obligations by the Service Provider/employee shall attract penalties as mentioned against each obligation. The Service Provider confirms and agrees that penalty whenever becomes payable, the same shall be deducted by the Buyer department from the payments due to the Service Provider.
• All applicable taxes and duties shall be payable by the Service Provider and the Buyer shall not entertain any claims whatsoever with respect to the same. The Service Provider shall pay the GST and the price quoted should be inclusive.
• The cost of the Contract shall be valid for initial contract period. No price escalation shall be entertained by the Buyer during the period.

Payment Cycle

• Payment shall be made once the Service Provider submits the invoice for the same as per the prescribed process flow.
• The Buyer shall make the payment within prescribed timelines as per the payment process flow upon submission of invoice, logbook, and service feedback.

Payment Process

• Payment shall be made only after submission of invoices, logbook, service feedback, non-submission of the same may lead to delay/ deduction in payment.
• All the penalties/ fine/ interest (if applicable) will be settled before making the payments. Service Provider shall not have any objection on the same.

Penalties and Termination

• The percentage of supply of drugs/medicine, dressings and surgical consumables, as mentioned by Buyer in bid document (ATC) should be adhered by service provide.
• The maximum cumulative penalty on all the occasions put together shall not exceed 10% of the contract value and exceeding the limit is liable for termination of the contract.

• In case of non-delivery/partial delivery/delayed delivery/ sub-standard or spurious medicines/drugs, dressings and surgical consumables, buyer specific penalty will supersede mentioned in bid document/ATC and will be implicated on the service provider.

Logbook   

• The service provider shall maintain registers and checklists for each activity on a Job Card, duly signed by the buyer’s representative. Service provider shall also submit a duly singed comprehensive report every month, detailing the services performed during the month.
• The service provider shall thereafter update the logbook on the GeM portal as per the logbook process flow.
• Once the service provider updates the logbook online, the Buyer shall either accept or reject these entries within the prescribed time lime. The buyer will also record the any service non delivery or non-performance issues, and subsequent penalties Failure totakeaction on logbook entries updated by service provider shall be deemed as accepted.
• The Service Provider can raise an issue against the rejection of any entry by the buyer within prescribed timelines of such rejection with the designated representative of the Buyer.

Amendment of Contract

• During service delivery period some conditions may occur when the Buyer and/ or Service Provider may require to amend the Agreement, some of such conditions may be as followed-
• Amendment in statutory variations: All statutory variations leading to increase in the cost of the contract will be debited to the buyer accounts.
• Variation of the Contract as per both parties’ consent: Variation of the Contract shall be done as per mutual consent of both parties; no party shall be made liable to pay/ get any compensation for agreement amendment. The variation in the contract can be through the following; however, the variation put together shall not reduce or exceed 25% of contract value

Termination of Contract

The Agreement shall be come to an end either on completion of the Contract Period or shall be terminated for the following reasons:

1. Mutual consent: The contract may be terminated based on mutual consent in case the services are no longer required by the Buyer. Termination based on mutual consent will not attract any penalties or shall not be liable for any extra payments other than payment of invoices raised till the time of termination including notice period.
2. Breach of contractual obligations: Any incidents considered as the breach of contract will result in immediate termination of services. The Buyer shall have the right to terminate the Contract effective immediately by giving written notice to the Service Provider if, the Service Provider breaches a material provision of this Contract where that breach is not capable of remedy; or if the Service Provider breaches any provision of this Contract and fails to remedy the breach within 14 days after receiving notice requiring it to do so.
3. Breach of SLAs : The contract may also be terminated if i)the cumulative penalties rise to 10% of the contract value ii) repeated breach of any SLA beyond 3 instances as per buyer discretion.

• However, termination of this Contract shall not affect any accrued rights or remedies of either party.