Government decided vendor service charge circular? Minimum service charge quote for manpower supply e-tender?

Please help - what is the minimum service charge quote for manpower supply e-tender? Government decided vendor service charge circular?

Hi Shree,
There is cut-throat competition going on in quoting, especially in manpower supply, facilities, security contract etc. Many tend to quote 0.1% or even '0'%. Some employer doesn't agree to such freak rates. But if everything is rightly evaluated 10 to 15% as service charge to the Contractor should be alright. But quoting is different and winning the tender is different as it's depend on the quotes of your competitors. Employers cannot justify picking higher %age of quote when there are lower rates quoted by others, unless such lower quotes are blacklisted.

I agree with the aforesaid views and it becomes very difficult to agree to accept a tender with zero or very negligible service charge. In the government sector with the L1 rate being binding, it becomes practically difficult to work with such rates. The contractor can be asked to explain how the compliance of the statutory provisions will be ensured, including the revision of min. wages due. Although there is a provision to exclude unworkable rates, it is too cumbersome to justify it.
Seeing the pitfalls involved in pure manpower supply contracts, make it a manpower + equipment contract or try to make it geographical area-wise etc as the case may be.

Bidding with lower rate is the vendors choice.In govt sector tender bidding even goes with 0%.
But based on terms of services and compliances need a vendor must ensure his clear profit in terms of service charges.
Having said this, I would only suggest to bid with calrity in rates of wages, compliances and service charges which would help sustain quality of work, manpower retention, smooth operations and sustainable profit so that contract is sustained and repute of the contractor too.