kgn olk 92 2013 tender for supply of lubricants for drilling rigs and mobile equipments for olkaria...

8/14/2019 KGN OLK 92 2013 Tender for Supply of Lubricants for Drilling Rigs and Mobile Equipments for Olkaria Geothermal

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Supply of Lubricants For Dr il li ng Rigs and Mobile Equipments for Ol kari a Geothermal Project

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KENYA ELECTRICITY GENERATING

COMPANY LTD

KGN-OLK-92-2013

TENDER FOR SUPPLY OF LUBRICANTS FORDRILLING RIGS AND MOBILE EQUIPMENTS

FOR OLKARIA GEOTHERMAL PROJECT

Kenya Electricity Generating Company Ltd,

Stima Plaza Phase III,

Kolobot Rd, Parklands,

P.O Box 4793600100.

NAIROBIKENYA.

www.kengen.co.ke

November, 2013


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Supply of Lubricants For Dr il li ng Rigs and Mobile Equipments for Olkar ia Geothermal Project

SECTION Page

Section A: Invitation for Tenders ........................................................................................ 3

Section B: Instructions to Tenderers .................................................................................... 4

Section C: General Conditions of Contract ......................................................................... 13

Section D: Special Conditions of Contract.......................................................................... 18

Section E: Technical Specifications and Price Schedules ................................................. 20

Section F: Tender Form ...................................................................................................... 26

Section G: Tender Security Form ...................................................................................... 27

Section H: Mandatory Confidential Business Questionnaire ........................................... 28

Section I: Contract Form .................................................................................................. 33

Section J: Performance Security Form ............................................................................. 35

Section K: Manufacturer's Authorization Form ................................................................. 36


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SECTION A

INVITATION FOR TENDERS

Kenya Electricity Generating Company Limited (KenGen) invites sealed tenders for Supply

of Lubricants for Drilling Rigs and Mobile Equipments whosespecifications are detailedin this Tender Document.

Tel: (254) (020) 3666000, Fax: (254) (020) 3666200 Email:[email protected]

c.c:[email protected]@[email protected] normal working

days beginning date of advert

Where the tender document may be collected upon payment of a non-refundable fee of KShs.

1, 000.00paid in cash or through abankerscheque at any KenGen finance office. The

document can also be viewed and downloaded from the websitewww.kengen.co.ke,and the

Bidders who download the tender document from the website must forward their particulars

immediately for records and any further tender clarifications and addenda. Downloadedcopies are FREE

Tenders MUSTbe accompanied by a Bid Security in the form and amount specified in the

Tender Document, and must be delivered to:

Company Secretary/Legal & Corporate Affairs Director

Kenya Electricity Generating Company Ltd.

7thFloor, Stima Plaza Phase III

Kolobot Road, Parklands

P.O. Box 47936 - 00100

NAIROBI, KENYA

On or before: 29thNovember 2013 at 10.00 a.m.

Tenders will be opened on 29thNovember 2013 at 10.30 a.m.in the presence of tenderers'

representatives who choose to attend in the Executive Room, 7thFloor, Stima Plaza Phase III.

SUPPLY CHAIN MANAGER
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.kengen.co.ke/http://www.kengen.co.ke/http://www.kengen.co.ke/http://www.kengen.co.ke/mailto:[email protected]:[email protected]:[email protected]:[email protected]


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SECTION B

INSTRUCTIONS TO TENDERERS

Introduction

1. Eligible Tenderers1.1 This Invitation for Tenders is open to all tenderers. The successful tenderer shall

complete the supply of goods by the intended completion date specified in the tender

document.

1.2 Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent

practices.

2. Cost of Tendering

2.1 The Tenderer shall bear all costs associated with the preparation and submission of itstender, and KenGen, will in no case be responsible or liable for those costs, regardless of

the conduct or outcome of the tendering process.

The Tender Document

3 Contents3.1The tender document comprises the document listed below and addenda issued in

accordance with Clause 5 of the Instructions to Tenderers.

(a) Invitation for Tenders(b) Instructions to Tenderers(c) General Conditions of Contract(d) Special Conditions of Contract(e) Technical Specifications and Price Schedules(f) Tender Form(g) Tender Security Form(h) Mandatory Confidential Business Questionnaire(i) Contract Form(j) Performance Security Form(k) Manufacturers Authorization Form

3.2 The Tenderer is expected to examine all instructions, forms, terms, and specifications in

the tender document. Failure to furnish all information required by the tender document

or to submit a tender not substantially responsive to the tender document in every respect

will be at the tenderers risk and may result in the rejection of its tender.

4. Clarification of Tender Document4.1 A prospective tenderer requiring any clarification of the tender document may notify

KenGen in writing (email in PDF format or by facsimile) at the following address:

Supply Chain Manager

Kenya Electricity Generating Company Ltd (KenGen)Ground Floor, Stima Plaza, Phase III


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Kolobot Road, Parklands

P.O Box 47936 - 00100

NAIROBI, KENYA

Fax: (254)(020) 3666200; E-mail: [email protected];[email protected]

KenGen will respond in writing to any request for clarification received no later than

Seven (7)calendar days prior to the deadline of submission of tenders.

5. Amendment of Tender Document5.1 At any time prior to the deadline for submission of tenders, KenGen, for any reason,

whether at its own initiative or in response to a clarification requested by a prospective

tenderer, may modify the tender document by amendment.

5.2 All prospective tenderers that have received the tender document will be notified of the

amendment in writing (email in PDF format or by facsimile), and will be binding on

them.

5.3 In order to allow prospective tenderers reasonable time in which to take the amendment

into account in preparing their tenders, KenGen, at its discretion, may extend the deadline

for the submission of tenders.

Preparation of Tenders

6. Language of Tender6.1The tender prepared by the tenderer, as well as all correspondence and document relating to

the tender exchanged by the tenderer and KenGen, shall be written in English. Supporting

document and printed literature furnished by the tenderer may be written in another

language provided they are accompanied by an accurate English translation of therelevant passages in which case, for purposes of interpretation of the tender, the English

translation shall govern.

7. Document Comprising the Tender7.1 The tender prepared by the tenderer shall comprise the following components:

(a) a Tender Form and a Price Schedule completed in accordance with Clauses 8, 9

and 10 below; and

(b) tender security furnished in accordance with Clause 11

8. Tender Form8.1 The tenderer shall complete the Tender Form and the Price Schedule furnished in the

tender document, indicating the goods to be supplied, a brief description of the goods,

their country of origin, quantity and prices.

9. Tender Prices9.1 The tenderer shall indicate on the appropriate Price Schedule the unit prices and total

tender price of the goods it proposes to supply under the contract.

9.2 The prices indicated on the Price Schedule shall be Delivered and Duty Paid (DDP) to

Olkaria.
mailto:[email protected]:[email protected]


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9.4 Prices quoted by the tenderer shall be fixed during the tenderers performance of thecontract and not subject to variation on any account. A tender submitted with an

adjustable price quotation will be treated as non-responsive and will be rejected, pursuant

to Clause 21.

10. Tender Currencies

10.1 Prices shall be quoted in Kenya Shillings or in another freely convertible currency.

11. Tenderers Eligibility and Qualifications.

11.1 The tenderer shall furnish, as part of its tender, documents establishing the tenderers

eligibility to tender and its qualifications to perform the contract if its tender is accepted.

11.2 The documentary evidence of the tenderers eligibility to tender shall establish toKenGens satisfaction that the tenderer, at the time of submission of its tender, is from an

eligible source country.

11.3 The documentary evidence of the tenderers qualifications to perform the contract if itstender is accepted shall establish to KenGens satisfaction:

(a) that, in the case of a tenderer offering to supply goods under the contract which thetenderer did not manufacture or otherwise produce, the tenderer has been duly

authorized by the goodss Manufacturer or producer to supply the goods;

(b) that the tenderer has the financial, technical, and production capability necessary toperform the contract.

12. Goods Eligibility and Conformity to Tender Document.12.1 The tenderer shall furnish, as part of its tender, documents establishing the eligibility and

conformity to the tender documents of all goods, which the tenderer proposes to supplyunder the contract.

12.2 The documentary evidence of the eligibility of the goods shall consist of a statement in

the Price Schedule of the country of origin of the goods offered, which shall be

confirmed by a certificate of origin issued at the time of shipment.

12.3 The documentary evidence of conformity of the goods to the tender documents may be inthe form of literature, drawings, and data, and shall consist of:

(a)a detailed description of the essential technical and performance characteristics ofthe goods;

(b)a clause-by-clause commentary on KenGens Technical Specificationsdemonstrating substantial responsiveness of the goods to those specifications, or a

statement of deviations and exceptions to the provisions of the Technical

Specifications.

13. Tender Security13.1 The tenderer shall furnish, as part of its tender, a tender security in the amount of Kshs

400,000.

13.2 The tender security is required to protect KenGen against the risk of tenderers conduct,which would warrant the securitys forfeiture, pursuant to Clause 13.7.


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18.3 No tender will be modified after the deadline for submission of tenders.

18.4 No tender will be withdrawn in the interval between the deadline for submission of

tenders and the expiration of the period of tender validity specified by the tenderer on the

Tender Form. Withdrawal of a tender during this interval may result in the tenderers

forfeiture of its tender security, pursuant to Clause 13.7.

Opening and Evaluation of Tenders

19. Opening of Tenders19.1KenGen will open all tenders in the presence of tenderers representatives who choose to

attend on. 29th November 2013 at 10.30 a.m. The tenderers representatives who are

present shall sign a register evidencing their attendance.

19.2 The tenderers names, tender modifications or withdrawals, tender prices, discounts, and

the presence or absence of requisite tender security and such other details as KenGen, atits discretion, may consider appropriate, will be announced at the opening.

19.3 KenGen will prepare minutes of the tender opening.

20. Clarification of Tenders20.1 To assist in the examination, evaluation and comparison of tenders KenGen may, at its

discretion, ask the tenderer for a clarification of its tender. The request for clarification

and the response shall be in writing (email in PDF format or by facsimile), and no change

in the prices or substance of the tender shall be sought, offered, or permitted.

Any effort by the tenderer to influence KenGen in its decisions on tender evaluation,tender comparison or contract award may result in the rejection of the tenderers tender.

21. Preliminary Examination21.1 KenGen will examine the tenders to determine whether they are complete, whether any

computational errors have been made, whether required sureties have been furnished,

whether the documents have been properly signed, and whether the tenders are generally in

order.

21.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy

between the unit price and the total price that is obtained by multiplying the unit price

and quantity, the unit price shall prevail, and the total price shall be corrected. If thetenderer does not accept the correction of the errors, its tender will be rejected, and its

tender security may be forfeited. If there is a discrepancy between words and figures, the

amount in words will prevail.

21.3 KenGen may waive any minor informality or non-conformity or irregularity in a tender

which does not constitute a material deviation, provided such waiver does not prejudice

or affect the relative ranking of any tenderer.

21.4 Prior to the detailed evaluation, pursuant to Clause 22, KenGen will determine the

substantial responsiveness of each tender to the tender document. For purposes of these

paragraphs, a substantially responsive tender is one, which conforms to all the terms and


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conditions of the tender document without material deviations. KenGens determination

of a tenders responsiveness is to be based on the contents of the tender itself without

recourse to extrinsic evidence.

21.5 If a tender is not substantially responsive, it will be rejected by KenGen and may notsubsequently be made responsive by the tenderer by correction of the nonconformity.

21.6 Mandatory Preliminary Evaluation Criteria Manufacturers authorization, guarantee and warranty Duly completed Tender Form Duly completed Price Schedule Duly completed Confidential Business Questionnaire Audited financial statements for the past two (2) years Evidence of incorporation in Kenya i.e. Certificate of Incorporation/ Registration. Copy of Valid Petroleum Business License issued by the Energy Regulatory

Commission. Tender Security in the amount of Ksh 400,000. Price quoted shall be delivered and duty paid to Olkaria. The Tender validity period shall be 90 days. Tender Security has to be valid 29thMarch 2014 Valid Tax Compliance Certificate issued by Kenya Revenue Authority. (for local

suppliers)

22. Evaluation and Comparison of Tenders22.1 KenGen will evaluate and compare the tenders, which have been determined to be

substantially responsive, pursuant to clause 19.

22.2 KenGens evaluation of a tender will exclude and not take into account any allowance forprice adjustment during the period of execution of the contract, if provided in the tender.

22.3 KenGens evaluation of a tender will take into account, in addition to the tender price andthe price of incidental services, the following factors:

a) compliance to the tender requirements pursuant to Clauses 11, 12 and 13;b) compliance to the technical specifications;c) compliance with Section E notes 1,2,3,4,5 and 6;d)

Qualification information provided in the Mandatory Confidential BusinessQuestionnaire;

e) tender validity of not less than 90 days;f) Delivery period offered in the tender. The delivery period should not exceed 4

weeksafter the date of signing the Contract; and

g) deviation in payment schedule from that specified in the Special Conditions ofContract.

23. Contacting KenGen

23.1 Subject to Clause 20, no tenderer shall contact KenGen on any matter relating to itstender, from the time of the tender opening to the time the contract is awarded.

23.2 Any effort by a tenderer to influence KenGen in its decisions on tender evaluation, tender


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comparison, or contract award may result in the rejection of the tenderers tender.

Award of Contract

24. Award Criteria24.1 Subject to Clauses 9, 22 and 26 KenGen will award the contract to the successful

tenderer(s) whose tender has been determined to be substantially responsive and has been

determined to be the lowest evaluated tender.

25. KenGens Right to Vary Quantities

25.1 KenGen reserves the right at the time of contract award to increase or decrease the

quantity of goods originally specified in the Schedule of Requirements without any

change in unit price or other terms and conditions.

26. KenGens Right to Accept or Reject Any or All Tenders

26.1 KenGen reserves the right to accept or reject any tender, and to annul the tenderingprocess and reject all tenders at any time prior to contract award, without thereby

incurring any liability to the affected tenderer or tenderers or any obligation to inform the

affected tenderer or tenderers of the grounds for its action.

27. Notification of Award27.1 Prior to the expiration of the period of tender validity, KenGen will notify the successful

tenderer in writing that its tender has been accepted.

27.2 Upon the successful tenderers furnishing of the performance security pursuant to Clause29, KenGen will promptly notify each unsuccessful tenderer and will discharge its tender

security, pursuant to Clause 13.

28. Signing of Contract

28.1 At the same time as KenGen notifies the successful tenderer that its tender has been

accepted, KenGen will send the tenderer the Contract Form provided in the tender

document, incorporating all agreements between the parties.

28.2 Within fifteen (15) days of receipt of the Contract Form, the successful tenderer shallsign and date the contract and return it to KenGen.

29. Performance Security

29.1 Within fifteen (15) days after signing of the contract, the successful tenderer shall furnishthe performance security in accordance with the Conditions of Contract, in the

Performance Security Form provided in the tender document, or in another form

acceptable to KenGen.

29.2 Failure of the successful tenderer to comply with the requirement of Clause 28 or Clause

29 shall constitute sufficient grounds for the annulment of the award and forfeiture of the

tender security, in which event KenGen may make the award to the next lowest evaluated

tenderer or call for new tenders.

30. Corrupt or Fraudulent Practices


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30.1 KenGen requires that tenderers observe the highest standard of ethics during the

procurement process and execution of contracts. In pursuance of this policy, KenGen:-

(a)defines, for the purposes of this provision, the terms set forth below as follows:

(i) corrupt practice means the offering, giving, receiving or soliciting of any

thing of value to influence the action of a public official in the procurement

process or in contract execution; and

(ii) fraudulent practice means a misrepresentation of facts in order to influence

a procurement process or the execution of a contract to the detriment of

KenGen, and includes collusive practice among tenderers (prior to or after

tender submission) designed to establish tender prices at artificial non-

competitive levels and to deprive KenGen of the benefits of free and open

competition;

(b) will reject a proposal for award if it determines that the tenderer recommended for

award has engaged in corrupt or fraudulent practices in competing for the contract

in question;

(c) will declare a firm ineligible, either indefinitely or for a stated period of time, to be

awarded any contract if it at any time determines that the firm has engaged in

corrupt or fraudulent practices in competing for, or in executing, a contract.

30.2 Furthermore, tenderers shall be aware of the provision stated in the General Conditions of

Contract.


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SECTION C

GENERAL CONDITIONS OF CONTRACT

1. Definitions1.1 In this Contract, the following terms shall be interpreted as indicated:

(a) The Contract means the agreement entered into between KenGen and the Supplier,

as recorded in the Contract Form signed by the parties, including all attachments and

appendices thereto and all documents incorporated by reference therein.

(b) The Contract Price means the price payable to the Supplier under the Contract for thefull and proper performance of its contractual obligations.

(c) The Supplier means the individual or firm supplyingthe goods under this Contract.(d) The Goods means all of the equipment, machinery, and/or other materials, which the

Supplier is required to supply to KenGen under this Contract.

2. Application

2.1 These General Conditions shall apply in all Contracts made by KenGen for the procurement

of goods.

3. Country of Origin3.1 For purposes of this Clause, origin means the place where the Goods were manufactured or

produced.

3.2 The origin of the Goods is distinct from the nationality of the Supplier.

4. Standards

4.1 The Goods supplied under this Contract shall conform to the standards mentioned in theTechnical Specifications.

5. Use of Contract Documents and Information

5.1 The Supplier shall not, without KenGens prior written consent, disclose the Contract, or anyprovision thereof, or any specification, plan, drawing, pattern, sample, or information

furnished by or on behalf of KenGen in connection therewith, to any person other than a

person employed by the Supplier in the performance of the Contract.

5.2 The Supplier shall not, without KenGens prior written consent, make use of any documentor information enumerated in Clause 5.1 above.

5.3 Any document, other than the Contract itself, enumerated in Clause 5.1 shall remain the

property of KenGen and shall be returned (all copies) to KenGen on completion of the

Suppliers performance obligations under the Contract if so required by KenGen.

6. Patent Rights

6.1 The Supplier shall indemnify KenGen against all third-party claims of infringement of

patent, trademark, or industrial design rights arising from use of the Goods or any part

thereof in Kenya.

7. Performance Security7.1 Within fifteen (15) days after signing of the Contract award, the Supplier shall furnish to


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KenGen the performance security in the amount specified in Special Conditions of Contract.

7.2 The proceeds of the performance security shall be payable to KenGen as compensation for

any loss resulting from the Suppliers failure to complete its obligations under the Contract.

7.3 The performance security shall be denominated in the currency of the Contract, or in a freelyconvertible currency acceptable to KenGen and shall be in the form of a bank guarantee oran irrevocable letter of credit issued by a reputable bank located in Kenya or abroad,

acceptable to KenGen, in the form provided in the tender document.

7.4 The performance security will be discharged by KenGen and returned to the Supplier notlater than thirty (30) days following the date of completion of the Suppliers performance

obligations under the Contract, including any warranty obligations, under the Contract.

8. Inspection and Tests

8.1 KenGen or its representative shall have the right to inspect and/or to test the Goods to

confirm their conformity to the Contract specifications. KenGen shall notify the Supplier in

writing, in a timely manner, of the identity of any representatives retained for these purposes.

8.2 The inspections and tests may be conducted on the premises of the Supplier or its

subcontractor(s), at point of delivery, and/or at the Goods final destination. If conducted on

the premises of the Supplier or its subcontractor(s), all reasonable facilities and assistance,

including access to drawings and production data, shall be furnished to the inspectors at no

charge to KenGen.

8.3 Should any inspected or tested Goods fail to conform to the Specifications, KenGen mayreject the Goods, and the Supplier shall either replace the rejected Goods or make alterations

necessary to meet specification requirements free of cost to KenGen.

8.4 KenGen's right to inspect, test and, where necessary, reject the Goods after the Goods

arrival shall in no way be limited or waived by reason of the Goods having previously been

inspected, tested, and passed by KenGen or its representative prior to the Goods delivery.

8.5Nothing in Clause 8 shall in any way release the Supplier from any warranty or otherobligations under this Contract.

8.6All consignments subject to Pre-Export Verification of Conformity (PVoC) to StandardsProgramme must obtain a Certificate of Conformity (CoC) issued by PvoC Country Offices

Prior to shipment. The Certificate is a mandatory Customs Clearance document in Kenya;

Consignments arriving at Kenyan Ports without this document will be denied entry into the

Country. Since PVoC is a conformity assessment process to verify that products imported to

Kenya are in compliance with the applicable Kenya standards or approved equivalents,

regulations and technical requirements before shipment, it is the sole responsibility of the

supplier (i.e. exporter) to demonstrate the same and hence meet any associated costs of

verification.

9 Packing9.1 The Supplier shall provide such packing of the Goods as is required to prevent their damage

or deterioration during transit to their final destination, as indicated in the Contract.

9.2 The packing, marking, and documentation within and outside the packages shall complystrictly with such special requirements as shall be expressly provided for in the Contract.


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10. Delivery and Documents

10.1 Delivery of the Goods shall be made by the Supplier in accordance with the terms specifiedby KenGen in its Schedule of Requirements and the Special Conditions of Contract.

11. Insurance

11.1 The Goods supplied under the Contract shall be fully insured against loss or damage

incidental to manufacture or acquisition, transportation, storage, and delivery in the mannerspecified in the Special Conditions of Contract

12. Warranty12.1 The Supplier warrants that the Goods supplied under the Contract are new, unused, of the

most recent or current models, and that they incorporate all recent improvements in design

and materials unless provided otherwise in the Contract. The Supplier further warrants that

all Goods supplied under this Contract shall have no defect, arising from design, materials,

workmanship, or from any act or omission of the Supplier, that may develop under normal

use of the supplied Goods in the conditions prevailing in the country.

12.2 This warranty shall remain valid for twelve (12) months after the Goods, or any portionthereof as the case may be, have been delivered to and accepted at the final destination

indicated in the Contract.

12.3 KenGen shall promptly notify the Supplier in writing of any claims arising under this

warranty.

12.4 Upon receipt of such notice, the Supplier shall, within a period of 30 days, and with all

reasonable speed, repair or replace the defective Goods or parts thereof, without costs to

KenGen.

12.4

If the Supplier, having been notified, fails to remedy the defect(s) within the period specifiedin 12.4 above, within a reasonable period, KenGen may proceed to take such remedial action

as may be necessary, at the Suppliers risk and expense and without prejudice to any other

rights which KenGen may have against the Supplier under the Contract.

13. Payment

13.1 The method and conditions of payment to be made to the Supplier under this Contract shall

be specified in Special Conditions of Contract.

13.2 Payments shall be made promptly by KenGen as specified in the Contract.

14. Prices14.1 Prices charged by the Supplier for Goods delivered under the Contract shall not, with the

exception of any price adjustments authorized in Special Conditions of Contract, vary from

the prices quoted by the Supplier in its tender.

15. Assignment

15.1 The Supplier shall not assign, in whole or in part, its obligations to perform under this

Contract, except with KenGens prior written consent.

16. Subcontracts

16.1 The Supplier shall notify KenGen in writing of all subcontracts awarded under this Contract

if not already specified in the tender. Such notification, in the original tender or later, shall

not relieve the Supplier from any liability or obligation under the Contract.


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17. Termination for Default

17.1 KenGen may, without prejudice to any other remedy for breach of Contract, by written

notice of default sent to the Supplier, terminate this Contract in whole or in part:

(a) if the Supplier fails to deliver the Goods within the period(s) specified in the Contract,

or within any extension thereof granted by KenGen.(b) if the Supplier fails to perform any other obligation(s) under the Contract.

(c) if the Supplier, in the judgment of KenGen has engaged in corrupt or fraudulent

practices in competing for or in executing the Contract.

17.2 In the event KenGen terminates the Contract in whole or in part, it may procure, upon suchterms and in such manner, as it deems appropriate, Goods similar to those undelivered, and the

Supplier shall be liable to KenGen for any excess costs for such Goods.

18. Liquidated Damages18.1 If the Supplier fails to deliver the Goods within the period(s) specified in the Contract,

KenGen shall, without prejudice to its other remedies under the Contract, deduct from theContract Price, as liquidated damages, a sum equivalent to 0.5% of the delivered price of the

delayed Goods for each week of delay until actual delivery, up to a maximum deduction of

10% of the delivered price of the delayed Goods. After this KenGen may consider

termination of the Contract.

19. Resolution of Disputes

19.1 KenGen and the Supplier shall make every effort to resolve amicably by direct informal

negotiation any disagreement or dispute arising between them under or in connection with

the Contract.

19.2 If, after thirty (30) days from the commencement of such informal negotiations both partieshave been unable to resolve amicably a Contract dispute, either party may require that the

dispute be referred for resolution to formal mechanisms. These mechanisms include, but are

not restricted to, conciliation by a third party, adjudication in an agreed national or

international forum, and/or international arbitration.

20. Language and Law

20.1 The language of the Contract and the law governing the Contract shall be English language

and the Laws of Kenya respectively unless otherwise stated.

21. Force Majeure

21.1 The Supplier shall not be liable for forfeiture of its performance security, or termination for

default if and to the extent that its delay in performance or other failure to perform its

obligations under the Contract is the result of an event of Force Majeure.


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SECTION D

SPECIAL CONDITIONS OF CONTRACT

1. DefinitionsThe Purchaser is Kenya Electricity Generating Company Limited of Stima Plaza, KolobotRoad, Parklands, and P.O. BOX 47936 - 00100 GPO, Nairobi. Kenya and includes its legal

representatives, successors or assigns.

2. ApplicationThe following Special Conditions of Contract shall supplement the General Conditions of

Contract. Whenever there is a conflict, the provisions herein shall prevail over those in the

General Conditions of Contract.

7. Performance SecurityThe Performance Security shall be in the amount of 10% of the Contract Price.

8. Inspections and TestsAll consignments subject to Pre-Export Verification of Conformity (PVoC) to Standards

Programme must obtain a Certificate of Conformity (CoC) issued by PvoC Country Offices

Prior to shipment. The Certificate is a mandatory Customs Clearance document in Kenya;

Consignments arriving at Kenyan Ports without this document will be denied entry into the

Country. Since PVoC is a conformity assessment process to verify that products imported to

Kenya are in compliance with the applicable Kenya standards or approved equivalents,

regulations and technical requirements before shipment, it is the sole responsibility of the

supplier (i.e. exporter) to demonstrate the same and hence meet any associated costs of

verification.

10. Delivery PeriodThe Goods shall be delivered within 4 weeksafter the date of contract award. Delivery must

be for a complete schedule. Partial delivery shall not be accepted.

Delivery Terms: Delivered and Duty Paid (DDP) to Olkaria Rig Store

13. Payment Terms and ConditionsKenGens payment terms are 30 days upon receipt of certified invoices and delivery notes

confirming that the invoiced material has been delivered and are in accordance with the contract.

Payment shall be made through KenGenscheque or telegraphic transfer for the amount of

contract. The terms shall be:-

i.Strictly Delivered and Duty Paid (DDP) to Olkaria Rig Store.Advance Payment: Advance payment is not applicable.

14. PricesPrices shall be fixed during the Suppliers performance of the Contract and not subject to

variation on any account.


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SECTION E

TECHNICAL SPECIFICATIONS AND PRICE SCHEDULES

Notes Applicable to All Schedules:

1. The Goods to be supplied must be new, unused and of the latest design.2. Relevant descriptive literature of the Goods showing conformity to technical specification

shall be provided with the bid. Irrelevant literature downloaded from the Internet is

not acceptable.

3. A tenderer may quote for supply of any line item or all items the schedules.4. If there is a discrepancy between words and figures, the amount in words shall prevail. If

there is a discrepancy between the unit price and the total price that is obtained by

multiplying the unit price and quantity, the unit price shall prevail, and the total price shallbe corrected.

5. Delivery Period

The delivery period shall be within four(4) weeks after the date of signing the Contract.Delivery must be for a complete schedule. Partial delivery shall not be accepted.

Delivery Terms: Delivered and Duty Paid (DDP) to Olkaria Rig Store

Schedule of Requirements

Schedule Description of materials

A Lubricants for drilling equipments

B Lubricants for engines, mobile and earthmoving equipments

C Lubricants for air compressors

TECHNICAL REQUIREMENTS

The lubricants should be of high quality and as specified below. The supplier should attach a material data sheet. Delivery must be complete and partial delivery shall not be accepted


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SCHEDULE OF MATERIALS, QUANTITIES AND PRICES

Schedule ALubricants for drilling equipments

ITEM DESCRIPTION Brand Unit price Qty

(lts)

Taxes 16%

VAT

Total cost per item,

delivery charges

Inclusive of VAT

1 Gear oil: Meropa 220 or equivalent to

ISO grade 220; Kinematic viscosity @40 C209 cSt, kinematic viscosity @

100 C18.8 cSt, API gravity 28.4,

pour point -21 C, flash point 245C,

AGMA grade 5EP

7,000

2 Gear oil: Meropa 320 or equivalent to

ISO grade 320; Kinematic viscosity @

40 C304 cSt, kinematic viscosity @100 C23.2 cSt, API gravity 27.3,

Viscosity index 95, pour point -18.0

C, flash point 245 C, AGMA grade

6EP

1,250

3 Torque converter oil: Presilia 32 or

equivalent to ISO grade 32; viscosity

@ 40 C30.6 cSt, viscosity @ 100

C5.3 cSt, Viscosity index 102, pour

point -12 C, flash point COC 212 C

1,400

4 Hydraulic oil LHM 46 or equivalent to

ISO Viscosity Grade ISO 3448; 46

Density @ 15C ASTM D4052; 877

kg/m3

Kinematic Viscosity @ 40C ASTMD7042; 41.4-50.6 mm2/s

Kinematic Viscosity @ 100C ASTM

D7042; 6.8 mm2/s

Viscosity Index ASTM D2270; >98

Flash Point (COC) ASTM D92;

>205CPour Point ASTM D97; -36C

FZG Fail Load Stage, DIN 51354-2

minimum; 11

Air Release Value @ 50C DIN 51381;

30.5 cSt, viscosity @ 100

C>5.5 cSt, FZG load stage 10, pourpoint 210

C

2,000

6 Premium Anti-wear Hydraulic Fluid:

ISO Grade 68, Viscosity Index 90 or

higher per ASTM D-2270, Ambient

Temperature Range -20oC to 50

oC,

Operating Temperature Range 0 oC to85

oC, Flash Point 160

oC or higher,

810


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Pour Point -30oC or lower, Kinematic

Viscosity 68 cST 5cST @ 40oC

6.4 cST + 2cST @ 100oC

7 Synthetic gear oil: Ultrex 75W-90,

Premium multipurpose extreme

pressure gearbox lubricant or

equivalent to ISO Grade 75W90.

Viscosity Index 145 minimum perASTM D-445.

Flash Point 1400C (minimum).

Pour Point -350C (maximum).

Kinematic Viscosity 120 cST

(minimum) @ 40oC,

15cST (minimum) @ 100oC.

Approved for API GL-5.

600

Total

Taxes, Transport and other charges

Total Cost Delivered Duty Paid to Olkaria Rig Store

Country of Origin

Currency of TenderDelivery period

Tenderers name (Company) ___________________________________________________

Signature & Rubber-stamp_____________________________Date_________________

NOTES

In case of discrepancy between unit and total cost, the unit cost shall prevail. Documentary evidence to prove that the items offered comply with the TechnicalSpecifications mustbe provided.

The bids must as per the Technical Specifications in the Tender Document. Bids thatdo not conform to the Technical Specifications will be disqualified.


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Schedule BLubricants for Engines, Mobile and Earthmoving Equipments

Item Description Brand Unit

price

Qty

Lts

Tax

16%

VAT

Total Cost Per Item,

Delivery Plus 16%

VAT

1 Engine oil: SAE 15W40, ACEA E5;outdoor temperatures of reference -15

0C

to 400C

37,000

2 Hydraulic oil: SAE 10W , API CF-4/SG

or M12 2104D; outdoor temperatures ofreference -15

0C to 10

0C

5,000

3 Transmission oil: SAE 30 , API SF/CDor API SF/CE; outdoor temperatures of

reference 00

C to 500C

7,000

4 Engine coolant: Ethylene glycol based

antifreeze coolant concentrate, designed

to meet the stringent corrosion

protection requirements, and must meet

ASTM D3306, D4340 and SAE J1034

specs.

8,000

5 Engine oil : Dello 6200 SAE 40 or

equivalent to API CF2 ; Sulfated ash

m% 2.4, Zinc < 10 mg/kg, Viscosity

index 100, viscosity @ 40 C145

mm/s, viscosity @ 100 C14.7 mm/s

2,000

6 Gear oil: EP 90, Mineral SAE 90,

Density at 15oC > 0.898 kg/l, Viscosity

@ 40oC >191 mm

2/s, Viscosity @

100oC >17 mm

2/s, Viscosity Index >96,

Flash point COC >230oC, Pour point < -

15

o

C, Performance level MIL-L-2105and API service classification GL-4.

2,000

Total


Total Cost Delivered Duty Paid to Olkaria Rig Store

Country of Origin

Currency of Tender

Delivery period

Tenderers name (Company) _______________________________________________


NOTES

In case of discrepancy between unit and total cost, the unit cost shall prevail. Documentary evidence to prove that the items offered comply with the Technical

Specifications mustbe provided.

The bids must as per the Technical Specifications in the Tender Document. Bids thatdo not conform to the Technical Specifications will be disqualified.


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22

Schedule CLubricants for Air Compressors

ITEM DESCRIPTION Brand Unit

price

Plus

VAT

Qty

Lts

Taxes

16% VAT

Total Cost per

item, delivery

charges Plus

16% VAT1 Compressor oil: Mobil ATF 220 or

equivalent to ASTM D 2270Viscosity Indexof 153, Viscosity ASTM D 445 @ 40 C

37 cSt, viscosity ASTM D 445 @ 100 C

7 cSt, Pour Point ASTM D 97 -44C, Flash

Point ASTM D 92 200C

7,000

Total


Total Cost Delivered Duty paid to Olkaria Rig Store

Country of Origin

Currency of Tender

Delivery period

Tenderers name (Company) _______________________________________________


NOTES

In case of discrepancy between unit and total cost, the unit cost shall prevail. Documentary evidence to prove that the items offered comply with the TechnicalSpecifications mustbe provided. The bids must as per the Technical Specifications in the Tender Document. Bids that

do not conform to the Technical Specifications will be disqualified.


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Summary of Price Schedules

SCHEDULE NO. & DESCRPTION CURRENCY AMOUNT

A Lubricants for drilling equipments.

BLubricants for engines, mobile and earth moving

equipments

C Lubricants for air compressors

TOTAL TENDER PRICE (to be transferred to Tender Form)


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SECTION F

TENDER FORM

To: Kenya Electricity Generating Company Limited,Stima Plaza Phase III, Kolobot Road, Parklands,

P.O Box 47936-00100,

NAIROBI. Kenya.

Gentlemen and/or Ladies:

1. Having examined the Tender Document, the receipt of which is hereby dulyacknowledged, we, the undersigned, offer to supply .(description of

Goods)in conformity with the said Tender Document for the sum of

..........................................................................................................

(total tender amount in words and figures) or such other sums as may be ascertained inaccordance with the Schedule of Prices attached herewith and made part of this Tender.

2. We undertake, if our Tender is accepted, to deliver the Goods in accordance with thedelivery schedule specified in the Schedule of Requirements.

3. If our Tender is accepted, we will obtain the guarantee of a bank in a sum equivalent to10% percent of the Contract Price for the due performance of the Contract, in the form

prescribed by KenGen.

4. We agree to abide by this Tender for a period of 90days from the date fixed for Tenderopening under Clause 19 of the Instructions to Tenderers, and it shall remain binding

upon us and may be accepted at any time before the expiration of that period.

5. Until a formal Contract is prepared and executed, this Tender, together with your writtenacceptance thereof and your notification of award, shall constitute a binding Contract

between us.

6. We understand that you are not bound to accept the lowest or any Tender you mayreceive.

Dated this ________________ day of ________________ 2013.

[signature] [in the capacity of]

Duly authorized to sign Tender for and on behalf of


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SECTION G

TENDER SECURITY FORM(To be on the Letterhead of the Bank)

Whereas ............................................(name of the tenderer)(hereinafter called the

Tenderer) has submitted its tender dated .................................... (date of submission of

tender) for the supply of ..(description of Goods)(hereinafter called the

Tender).

KNOW ALL PEOPLE by these presents that WE ..........................................(name of the

bank)of ............................................(address of bank)(hereinafter called the Bank), are

bound unto KenGen in the sum of Four Hundred thousand Kenya shi ll ings only, (Kshs

400,000)for which payment well and truly to be made to the said KenGen , the Bank binds

itself , its successors, and assigns by these presents. Sealed with the Common Seal of the said

Bank this ___________ day of ___________________ 2013.

THE CONDITIONS of this obligation are:

1. If the Tenderer withdraws its Tender during the period of tender validity specified by theTenderer on the Tender Form; or

2. If the Tenderer, having been notified of the acceptance of its Tender by KenGen duringthe period of tender validity:

(a) fails or refuses to execute the Contract Form, if required; or(b) fails or refuses to furnish the performance security, in accordance with the

Instructions to Tenderers;

we undertake to pay to KenGen up to the above amount upon receipt of its first written

demand, without KenGen having to substantiate its demand, provided that in its demand

KenGen will note that the amount claimed by it is due to it, owing to the occurrence of one or

both of the two conditions, specifying the occurred condition or conditions.

This guarantee will remain in force up to 29th

March 2014, and any demand in respect

thereof should reach the Bank not later than the above date.

__________________________________

(Signature of the Bank)


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SECTION H

INSURANCE TENDER SECURITY FORM

Tender No.: --------------------------------------------------Supply of Lubricants for Dr il li ng Rigs and

Mobile Equipments for Olkar ia Geothermal Project------------------------------------------------

To: Kenya Electricity Generating Company Limited

WHEREAS [insert: name of Tenderer](hereinafter called the Tenderer) has submitted its tenderdated [insert: date of tender]for the performance of the above-named Contract (hereinafter calledthe Tender)

KNOW ALL PERSONS by these present that WE [insert: name of the insurance company] of[insert: address of insurance company](hereinafter called the Guarantor) are bound unto KenyaElectricity Generating Company Limited (hereinafter called the Purchaser) in the sum of Kshs400,000, for which payment well and truly to be made to the said Purchaser, the guarantor binds itself,

its successors and assigns by these presents.

Sealed with the Common Seal of the said Guarantor this [insert: number]day of [insert: month],[insert: year].

THE CONDITIONS of this obligation are the following:

1. If, after the tender submission deadline, the Tenderera) withdraws its tender during the period of tender validity specified by the Tenderer in the

Tender Form, or

b) does not accept KenGen corrections of arithmetic errors in accordance with the Instructions toTenderers; or

c) does not at all reply to KenGen requests for clarification2. If the Tenderer, having been notified of the acceptance of its tender by KenGen during the

period of tender validity

a) Fails or refuses to sign the Contract Agreement when required; orb) Fails or refuses to issue the performance security in accordance with the Instructions to

Tenderers.

We undertake to pay to KenGen up to the above amount upon receipt of its first written demand,without the KenGen having to substantiate its demand, provided that in its demand KenGen will note

that the amount claimed by it is due it, owing to the occurrence of any one of the two above-namedCONDITIONS, and specifying the occurred condition or conditions.

This guarantee will remain in full force up to 29th

March 2014, and any demand in respect thereofmust reach the Guarantor not later than the above date.

For and on behalf of theSigned:

Date:in the capacity of: [ insert: titl e or other appropri ate designation]Common Seal of the Guarantor


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SECTION I

MANDATORY CONFIDENTIAL BUSINESS QUESTIONNAIRE(M ust be fi ll ed by all appli cants or tenderers who choose to participate in thistender)

Name of Appli cant (S)

.

You are requested to give the particulars in Part 1 and either Part 2 (a), 2 (b) or 2 (c),

whichever applies to your type of business. Part 2 (d) to part 2(i) must be filled.

You are advised that giving wrong or false information on this Form will lead to automatic

disqualification / termination of your business proposal at your cost.

Part 1General

BusinessName:......Certificate of Incorporation / Registration No.

Location of business premises: Country ...

Physical address .Town .

BuildingFloor..

Plot No. Street / Road ....

Postal Address .Postal / Country Code

Telephone Nos Fax Nos. .

E-mail address ..Website.

Contact Person (Full Names) .Direct / Mobile Nos. ..

Title Power of Attorney (Yes / No). If Yes,attach written

document.

Nature of Business (Indicate whether manufacturer, distributor, etc) ...

(Applicable to Local suppliers only)Local Authority Trading License No. Expiry Date

Value Added Tax No..

Value of the largest single assignment you have undertaken to date (US$/KShs).

Was this successfully undertaken? Yes / No. .(If Yes, attach reference)Name (s) of your banker (s) ..

Branches . Tel Nos. .

Part 2 (a)Sole Propri etor

Full names .....

Nationality .. Country of Origin ....

*Citizenship details.....

Company Profile . (Attach brochures or annual reports in case of

public companies)

Part 2 (b)Partnerships


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Give details of partners as follows:

Full Name Nationality Citizenship Details Shares

1

2

3

4

Company Profile .(Attach brochures)

Part 2 (c)Registered Company

Private or public .

Company Profile (Attach brochures or annual reports in case of public companies)

State the nominal and issued capital of the Company

Nominal KShs ...

Issued KShs ...List of top ten (10) shareholders and distribution of shareholding in the company.

Give details of all directors as follows:-

Full Name Nationality Citizenship Details Shares

1

2

3

4

Part 2 (d)Debarment

I/We declare that I/We have not been debarred from any procurement process and shall notengage in any fraudulent or corrupt acts with regard to this or any other tender by KenGen

and any other public or private institutions.

Full Names Signature.

Dated this day of 2013.

In the capacity of

Duly authorized to sign Tender for and on behalf of

Part 2 (e)Criminal Offence

I/We, (Name (s) of Director (s)):-

a) ...b)...c) d)

have not been convicted of any criminal offence relating to professional conduct or the

making of false statements or misrepresentations as to its qualifications to enter into a

procurement contract within a period of three (3) years preceding the commencement of

procurement proceedings.

Signed.For and on behalf of M/s ..


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In the capacity of .

Dated this day of .2013.

Suppliers / Companys Official Rubber Stamp

Part 2 (f)Confl ict of I nterest

I/We, the undersigned state that I / We have no conflict of interest in relation to this

procurement:

a) b)c) d)

For and on behalf of M/s

In the capacity of

Dated this day of .2013Suppliers / Companys Official Rubber Stamp

Part 2 (g)I nterest in the F irm:

Is there any person / persons in KenGen or any other public institution who has interest in the

Firm? Yes / No? .. (Delete as necessary)

Institution Title Signature Date

1

2

34

Part 2(h)Exper ience

Please list here below similar projects accomplished or companies / clients you have supplied

with similar items or equipments in the last two (2) years.

Company

Name

Country Contract/Order

No.

Value Contact

person

(FullNames)

E-mail

address

Cell

phone

No.

1

2

3

4

Note:The contact person should be at the level of director.

Part 2(i)Declaration

I / We, the undersigned state and declare that the above information is correct and that I / We

give Kenya Electricity Generating Company Limited authority to seek any other references

concerning my / our company from whatever sources deemed relevant, e.g. Office of theRegistrar of Companies, Bankers, etc.


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Full names

Signature

For and on behalf of M/s

In the capacity of

Dated this day of .2013.

Suppliers / Companys Official Rubber Stamp

*Attach proof of citizenship

* Attach certified copies of the following documents:

a) Previous orders from companies supplied beforeb)Certificate of Incorporation / Registrationc) Valid Tax Compliance Certificate (for local suppliers)d)Audited Financial Statements / Accounts for the last two (2) yearse)

Valid Local Authority / Trade License (for local suppliers)f) Copy of Valid Petroleum Business License issued by the Energy RegulatoryCommission.


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SECTION J

CONTRACT FORM

THIS AGREEMENT made the .................day of ...................................... 2012 betweenKenGen of the one part and .................................(name of Supplier) of

.....................................................(city and country of Supplier) (hereinafter called the

Supplier) of the other part:

WHEREAS KenGen invited tenders for the supply of certain goods, viz.,...................

(description of Goods)and has accepted a tender by the Supplier for the supply of those

Goods in the sum of ............................................................................................................

..........................(Contract Price in words and figures)(hereinafter called the Contract

Price).

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are respectively

assigned to them in the Conditions of Contract.

2. The following document shall be deemed to form and be read and construed as part of this

Agreement, viz.:

(a) the Tender Form and the Price Schedule submitted by the Supplier;

(b) the Technical Specifications, Schedule of Requirements and Prices;

(c) the General Conditions of Contract;

(d) the Special Conditions of Contract; and

(e) KenGens Notification of Award.

3. In consideration of the payments to be made by KenGen to the Supplier as hereinafter

mentioned, the Supplier hereby covenants with KenGen to provide the Goods and to remedy

defects therein in conformity in all respects with the provisions of the Contract

4. KenGen hereby covenants to pay the Supplier in consideration of the provision of the Goods

and the remedying of defects therein, the Contract Price or such other sum as may become

payable under the provisions of the Contract at the times and in the manner prescribed by the

Contract.


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IN WITNESS whereof the parties hereto have caused this Agreement to be executed in the

day and year first above written.

Signed and Sealed in the Common Seal of

KenGen in the presence of:

COMPANY SECRETARY )

)

)

)

)

)

)

WITNESS )

Signed and Sealed with the Common Seal of

the Supplier in the presence of:

DIRECTOR )

)

))

)

)

)

SECRETARY )

)


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SECTION L

MANUFACTURERS AUTHORIZATION FORM

To: Kenya Electricity Generating Company Limited,Stima Plaza Phase III, Kolobot Road, Parklands,

P.O Box 479360-00100,

WHEREAS .

[name of the Manufacturer]

who are established and reputable manufacturers of.

[name and/or description for Goods]

having factories at.

[address of factory]

do hereby authorize.[name and address of Agent]

to submit a tender, and subsequently negotiate and sign the Contract with you for the above

equipment manufactured by us.

We hereby extend our full guarantee and warranty as per the General and Special Conditions

of Contract for the Goods offered for supply by the above firm against this Invitation for

Tenders.

[signature for and on behalf of Manufacturer]

Note: This letter of authority should be on the letterhead of the Manufacturer and should be signed

by a person competent and having the power of attorney to bind the Manufacturer. It must be

submitted with and be part of the tender.