lucknow producer’s cooperative milk union...
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Lucknow Producer’s Cooperative Milk Union Ltd. 22, Jopling Road, Lucknow
Ref. 8867/LMU/Pur/Conversion/2014 dated : 20-01-2014
NOTICE INVITING TENDER(NIT)
Sealed bids are invited from eligible bidder under Two bid system for the following:
S.N Name of Item EMID
(Rs.)
Last date
for sale of
Tender
document
upto 1.00
pm on
Last date
for
submission
of Tender
document
upto 2.00
pm on
Date for
opening of
Tender
document at
2.30 pm on
1. Hiring of Powder
Plant for conversion of
Milk on job basis.
100000.00 05-02-2014 06-02-2014 06-02-2014
INVITATION FOR BID
1. DISCRIPTION OF WORK: Hiring of Powder Plant to offer facilities of 20 M.T. of
S.M.P. & 07 M.T. of White Butter per day for Milk Conversion on job basis, from surplus
Milk of Luckow Milk Union.
2. ADDITIONAL INFORMATION: Interested eligible bidders may obtain further
information from the office of the Incharge Purchase, Lucknow Milk Union and inspect the
bidding documents at the address given below.
3. REQUEST FOR BIDDING DOCUMENT: A complete set of bedding documents may be
purchased by any interested eligible bidder on the submission of a written application, to the
Manager(Finance), Lucknow Milk Union and upon the payment of non-refundable bidding
document cost as detailed below.
4. MINIMUM ELIGIBILITY CRITERIA: For the purpose of this particular contract bidder
shall have to meet the following eligibility criteria as minimum.
4.1 The bidder should be in business as manufacturer for a period of three year at the time of
bid opening in the same name and style. In order to support these, the bidder has to
submit:-
a) Photocopy of the purchase orders executed in the last three years in sale name and
style.
b) Any document issued by Govt. or Semi Govt. Department which certify/ prove that
the bidder is in business for the required period.
4.2 The bidder should be registered under office of competent authority or under statuary
bodies at the time of bid opening in the same name and style. In order to support these,
the bidder has to submit:-
OR
Copy of partnership deed in case of partnership firm.
OR
Copy of article of association in case of Pvt. Ltd. Companies.
OR
Copy of registration certificate for firms registered with NSIC/Central or State Govt.
department/Local bodies for similar work.
4.3 Bidder should have valid, Food Safety & Standard Act 2006, License & valid BIS
certificate.
4.4 Bidder’s plant shall be ISI/Ag-mark.
4.5 Bidder should have income tax clearance certificate for previous years in original but
not older than last three years .To support this bidder has to submit photocopy of latest
income tax clearance certificate but not older than two years in the same name and style
along with attested photocopy of Permanent Account Number (PAN), Tax Deduction &
Collection Number(TAN) and Service Tax Registration Number.
4.6 Bidder should have credentials for satisfactory performance for the last three years. To
support this bidder has to submit:-
(i) Details of orders executed satisfactorily to Milk Federation/Milk Union/Reputed
Milk Industries during last three years. The statement should be duly signed by the
bidder.
(ii) Certificate issued by Milk Federation/Milk Union/Reputed Milk Industries regarding
satisfactory execution of purchase orders given by them.
4.7. Bidder's firm should be registered with Sales Tax Department. To support this bidder
has to submit photocopy of Sales/Commercial Tax registration certificate(TIN) duly
renewed by the competent authority.
4.8. The bidder shall have to furnish the Solvency Certificate and Bankers Certificate issued
by Nationalized Bank as per bid document.
4.9. The bidder shall have to furnish Affidavit indicating:-
a) Detail of Assets & Liabilities along with details of first charge and second charge of
Financial Institution.
b) No Recovery notice by Financial Institution for nin-payment.
c) Status of Unit-Receiver: BIFR: Sick unit: NPA Accoutn.
d) Party is not bankrupt.
e) Loans and Limit details of Financial Institutions.
IN THE ABSENCE OF ANY CERTIFICATE/DOCUMENT OUT OF THE
ABOVE MENTIONED AS REQUIRED FOR FULFILLING THE ELIGIBILITY
CRITERIA THE CONCERND PARTY SHALL BE CONSIDERED AS NON
ELIGIBLE AND IN THE EVENT IF THIS THEIR BID EVEN IF LOWSET
SHALL NOT BE CONSIDERED.
Note: Above mentioned terms and conditions should be abided by bidder.
5. BID DETAILS: Detailed terms and conditions as well as the technical specifications for all
the items of works as indicated in the NIT are contained in one bidding document
comprising Technical part & Financial part. Only one set of bidding document shall be
sold to one bidder.
(a) Bid reference Ref. ……/LMU/Pur/Conversion/2014
dated : 21-01-2014
(b) Price of bidding document :Rs. 1000/-+5% VAT per set
(c) Incidental charges (in land) in case
documents are to be sent by courier/post
: Rs. 150/- (Rupees one hundred fifty only)
per set extra.
(d) Place of opening of bids Office of Incharge(Purchase), Lucknow Milk
Union Ltd., 22 Jopling Road, Lucknow-
226001
(e) Address of the communication Incharge(Purchase), Lucknow Milk Union
Ltd., 22 Jopling Road, Lucknow-226001, Ph:
0522-2207196/97
(f) Amount of Bid Security : Rs. 100,000/-(One Lac) In the shape of
demand draft.
6. PURCHASE OF BIDDING DOCUMENT IN PERSON: Bidders who desire to obtain
bidding document in person by submitting written request and paying through demand draft
may do so on any working day from 11.00 hrs. To 16.00 hrs. Only during the period of
sale of bid documents as specified in clause 5 hereof. Demand draft shall be prepared in
favour of Lucknow Producer’s Cooperative Milk Union Ltd. payable at Lucknow.
7. PURCHASE OF BIDDING DOCUMENT BY COURIER/POST: Bidders may send
request along with demand draft in favour of Luckcow Producer’s Cooperative Milk Union
Ltd. of value equal to price of bidding document plus incidental charges, as specified in
clause 5 (b) & 5(c) hereof to the address of communication during the period of sale of bid
document. Lucknow Milk Union Ltd., shall not take the responsibility for any delay in
receipt of the bidding document if it is sent by courier /post.
8. BID SECURITY: All bids must be accompanied by a bid security in the acceptable form as
specified in the bidding document and must be delivered to the address of communication as
stated above in clause 5 (f) on or before the last date and time of receipt of bids as
mentioned above. Earnest Money / Bid Security should be in the form of DD payable in the
name of Lucknow Milk Union Ltd, at Lucknow. Bids not supported by EMD shall not be
considered.
9. PRE BID MEETING: (Not applicable for this bid).
10. OPENING OF BIDS: Bids will be opened in the presence of those bidders or their
authorized representatives who choose to attend at the office of Lucknow Milk Union Ltd.
11. BID VALIDITY: The bid shall remain valid for a period of 120 (One Twenty) days from
the date of bid opening as mentioned above.
12. BID SECURITY VALIDITY : The bid security accompanying the bid shall be valid for 30
days beyond the bid validity period.
13. RIGHTS RESERVED BY LMU Ltd.: The LMU Ltd., at its sole discretion & without
assigning any reason thereof reserves the right to accept and / or reject any or all the bids.
Issued by
LMU Ltd., Lucknow
POINTER: Ref. 8867/LMU/Pur/Conversion/2014 dated : 20-01-2014
2.0 BIDDING DOCUMENT
(Incharge Purchase)
Lucknow Producer’s Cooperative Milk Union Ltd. 22, Jopling Road, Lucknow
(Ph. : 0522-2207196/97)
2. TECHNICAL BID
PART-1
TO BE SUBMITTED IN ORGINAL
BID DOCUMENT FOR
HIRING OF PLANT HAVING FACILITIES FOR CONVERSION
OF MILK TO SMP & WHITE BUTTER
(For surplus milk of Lucknow Milk Union Ltd., Lucknow)
(ON HIRING/JOB CONVERSION BASIS)
*READ THE TENDER TERMS & CONDITIONS CAREFULLY
2.1 TECHNICAL BID FORM General Manager,
Lucknow Producer’s Cooperative Milk Union Ltd.,
22, Jopling Road,
Lucknow-226001.
Sub:- Bid for the Hiring of dedicated Plant for Production of SMP & White Butter on Job
conversion basis for surplus milk of LMU Ltd., Lucknow.
Dear Sir,
With reference to the invitation to Tender Notice No: 8867/LMU/Pur/Conversion/2014
dated 20-01-2014 for the above-mentioned job after going through all terms & conditions required for the
job, we hereby offer our rates for SMP & White Butter on and job conversion basis, as detailed below:
1. Net Rate:-
S. N. Name of Item (As per enclosed specification) Rates (Rs.)/Kg.
1. Production & Packing of Skimmed Milk Powder
(in 25 Kgs. Pack)
As per financial
bid.
2. Production & Packing of White Butter
(in 20 Kgs. Pack)
As per financial
bid.
2. Price Basis: Rates are on Ex. Works basis.
3. Excise Duty: Rates are inclusive of Excise Duty @........ on the price of Rs. …………..
OR
We are exempted from Excise Duty/Excise duty not applicable.
4. Sales Tax/VAT: C.S.T @.....% against Form ……. Is included in the quoted rate. In case
form………. Is not given …..% will be charged extra.
OR
VAT Tax ...% included in the rate against Form........ In case Form...... is not given...% vat will be
charged extra.
OR
Sales /Vat/Tax not applicable.
5. Service Tax: Rates are inclusive of service tax @......... on the base price of Rs. …………
OR
Service Tax NOT Applicable.
6. No other tax will be paid by you/Milk Union/except mentioned at Point no.4.01
7. Lead Time: Supply shall be made strictly as per delivery schedule.
8. Validity of Bids : 120 days from the date of opening of respective Bids.
9. Terms of payment: We under stand that 100% payment due to converter shall be paid, after receipt,
checking and verification of material at the place of consignee Milk Unions, in a fortnight period.
Converter shall raise the bills for payment fortnightly (1-15 and 16 to end of the month) ensuring that
converted products have been received/verified by concern milk union. Payment shall be made
through D.D. with bank charges to borne by converter.
10. Earnest Money: We are depositing Earnest Money i.e. amount of Rs. …. (Rs. ………….. only) with
you, as per the details given below, which is not to bear any interest and we hereby agree that this
amount shall be forfeited in the event of your acceptance of the bid and our failure to execute the
contract when called upon to do so.
Sl.No. NAME OF BANK D/D No. & Date Amount
11. Panel clause: We accept the panel clause mentioned in the bid documents unconditionally. There will
be no guarantee for supplying of minimum quantity of skimmed milk/raw chilled milk to the party
for SMP/White Butter conversion. However, if required, we will accept quantities up to 2.0 lac Liters
of raw chilled milk/Skimmed Milk per day for the conversion of SMP/White Butter. If we fail to
accept the above mentioned quantities of Raw Chilled Milk/Skimmed Milk, the security money
deposited by us will be forfeited and/or a suitable penalty would be imposed on us deemed fit so as to
compensate the losses incurred by Lucknow Milk Union Ltd.
12. Security Money: We understand that if our rates are approved, the deposited earnest money shall be
converted to part of security money. The Security money shall be liable to be forfeited in the event of
breach of contract. In addition to any other action that Lucknow Milk Union Ltd. May think to be
proper at their sole discretion shall be acceptable to us. The security money shall be returned after
successful completion of the contract period. We understand that this amount is not to bear any
interest. We shall fulfill the remaining security obligation as per Clause No. 18 of General condition
of contract.
13. Material & its Quality: We shall ensure to supply the material strictly as per your specification and
requirement (As per enclosed specification)
14. Contract Period: Will be valid from February 2014 to April 2014 and this period can be extended
by another 45 days.
15. Price Revision:
a) We understand that no price revision shall be allowed to us except changes in Govt. levies on
finished products, which will be admissible as extra, on furnishing documentary proof by us.
b) We understand that due to increase in turnover of firm, any change in rate of Excise Duty shall
not be admissible to us.
16. Document Enclosure: We are furnishing the required statement and documents as stated in Format
for Tender Assessment and as required for fulfillment of eligibility criteria mentioned in NIT and as
well as General Condition of Contract. We hereby further declare that information furnished is true to
my knowledge and belief. In case of false statement or any forgery, Lucknow Milk Union Ltd. May
reject the bid, without assigning any reason.
We have satisfied ourselves with the conversion job to be carried by us carefully perused the terms
and condition of the bid documents, specification and we hereby confirm to execute the conversion on
owner’s behalf. The rates quoted are inclusive of all taxes.
We understand that you are not bound to accept the lowest or any bid you may receive. We also
understand that you will not accept those bids, which are not in conformity to the prescribed terms and
conditions.
Thanking you.
Date:
Postal Address:
Telephone No. Name:
FAX NO:
Seal
OFFICE OF THE LUCKNOW PRODUCER’S COOPERATIVE MILK UNION LTD. 22, Jopling Road, Lucknow
3.0 INSTRUCTIONS TO BIDDERS
1. Bidders participating in the bid shall ensure that they are the owners of the dairy plant.
Franchisees or Lease holders are strictly prohibited from bidding
2. Tender should be sent in a sealed cover superscribed by Tender for......................................
containing two sealed envelopes, one for Technical Bid and another for Financial Bid, all
should be duly superscribed – Type of bid, name of item and opening date.
3. Technical Bid should comprise of all papers related to eligibility criteria defined in General
conditions of contract, format for tenderers assessment duly filled with supporting documents,
required earnest money and required samples. Based on evaluation of technical bid, financial bid
offers of only the responsive bidders would be opened on declared scheduled dates and timings.
4. Financial Bid should comprise of offered rates in prescribed tender form, price brake-up (i.e.
base price and any other statutory charges etc. Bidders firm are requested to mention their rates
both in words and figures failing which their offer may be rejected. In case of ambiguity rates
mentioned in words would be considered.
5. Tender should be sent BY POST or submitted BY HAND to the office of Lucknow Milk
Union Ltd., 22 Jopling Road, Lucknow so as to reach this office by 1.00 p.m. on or before due
date.
6. Tenders shall be opened on the same day at 2.30 p.m. in the presence of intending parties/ their
representatives, who may like to be present at that time.
7. In case tender opening date is declared HOLIDAY, Tenders shall be received and opened on next
working day at the same time specified above.
8. Tender Form should be clearly filled in ink duly typed giving full name and addressed of the
tenderer. Over-Writing, alterations, additions etc. will disqualify the tender unless such
overwriting, alterations, additions are legibly attested and signed by the tenderer.
9. Conditional/Telegraphic/Fax/E-Mail tenders are liable to be rejected.
10. Tender must be accompanied by requisite amount of earnest money as specified in the enclosed
specification sheet without which it shall liable to be rejected.
11. Parties registered with DGS&D/ C.O.S. / S.S.I. units shall also be required to deposit earnest
money along with the tender.
12. Party, whose earnest money is already lying with PCDF against previous rate contract or due to
any other reason, will not be exempted from deposit of earnest money. Such parties should
deposit FRESH EARNEST MONEY.
13. Earnest money of unsuccessful bidders shall be returned immediately after finalizing the
contracts.
14. Only VALID offers shall be considered.
15. Offers should be strictly according to our specifications failing, which it shall not be considered.
16a) Photocopy of License to produce & manufacture milk & milk products under FSSA.
16b) License to produce, pack & mark S.M.P./ W.M.P. under BIS.
17. Photocopy of permission/approval for AGMARK replica the same must be enclosed with the
tender.
18. Photocopy of ISO- HACCP certificate, if available, shall be enclosed with the tender.
19. Rate contracts will be finalised on the basis of landed conversion cost, strictly as per instructions
and our terms and conditions.
20. No negotiations would take place after opening of bid, keeping the entire evaluation process
confidential. However in exceptional cases where the lowest rates are not found reasonable,
Lucknow Milk Union Ltd., 22 Jopling Road, Lucknow may negotiate the rates and terms &
conditions with clarification about furnished documents with the valid eligible bidder.
21. The bidders are required to furnish details mentioned in “Format for Tenderer Assessment” to
their best possible level for qualifying in eligibility criteria.
22. Canvassing in any form would lead to disqualification of bid.
Seen and accepted.
INCHARGE PURCHASE Signature of
Lucknow Milk Union Ltd., LKO. Bidder/authorized representative (With office rubber-stamp)
4.0 FORMAT FOR TENDERER ASSESSMENT
1. Name of the company:
2. Address:
3. Telephone Numbers:
a) Office:
b) Resi. :
4. Fax No.:
5. Nature of Business/item Manufacture:
6. Nature of Company Proprietary/partnership/Private Ltd./Public Ltd.
a) In case of Proprietary company:
Name, Address & Telephone No. of the proprietor.
(Enclose registration certificate)
b) In case of Partnership company:
Name, Address of Partners with phone No.
(Enclose partnership deed)
c) In case of Public/ private Ltd., company:
Name, Address & phone no.
No. of the Directors and their particulars:
(Enclose articles of association)
7. Person (s) to be contacted for clarification, if any:
8. Total Number of employees on date:
a) Administrative:
b) Technical:
9. Type of Industry:-
Small Scale/Medium Scale/Large Scale (Copy of registration Certificate
/approval certificate from competent authority shall be enclosed.)
10. Year of commencement of manufacturing:
11. Brief Description of Machinery:
With Make & installed capacity at Factory.
(Enclose details)
12. Annual Turnover during last three Years:
(Enclose copies of P/L and B/S A/c)
13. Total Production capacity/Day (Attach copy of MMPO License):
14. Percentage capacity available for our Organization:
15. Annual Production for last three years:
16. Whether equipped with facilities of Testing & Inspection:
(List of equipment, calibration status and technical staff mentioning the qualification to be
furnished)
17. Whether approved for BIS/AGMARK-Marking/ISO-HACCP Quality system certification
(Photocopies of the licenses and certificates to be enclosed):
18. Sales Tax No. :
Central Salex Tax No.: -
Tax Identification No. (TIN): -
(Enclose necessary documents)
19. Last income tax return filed to IT Deptt. (not older than two years):
20. Photocopy of, PAN card issued by IT, TAN No.&Service Tax Regt. No.
21. Solvency Certificate of required value as mentioned in General Conditions of Contract.
22. Bank Credit Certificate as mentioned in General Conditions of Contract.
23. Affidavit from the party indicating: -
I. Detail of Assets & Liabilities along with details of first charge and second charge of
Financial Institutions.
II. No Recovery notices by Financial Institutions for non-payment.
III. Status of Unit-Receiver: BIFR: Sick unit: NPA Account.
IV. Party is not bankrupt.
V. Loans and Limit details of Financial Institutions.
24. Experience: Details of information of conversion job done earlier for any federation/ milk
union:
25. Any special information:
26. Declaration:
Certified that the information given above is correct to the best of my knowledge and belief and
necessary detailed documentary information is enclosed wherever required. If any of the information
furnished is found wrong/false/forged, it may lead to disqualification at any stage leading to cancellation/
termination of contract.
SEAL
SIGNATURE............
NAME ............
DESIGNATION..........
PLACE................
DATE.................
Note: All documentary evidences furnished according to above format, must be duly signed by the
tenderer/ competent authority of the firm.
5.0 – General Conditions of Contract
1. The agency for execution of the contract will be the respective Milk Union. This will be later referred
as MILK UNION. The party who will execute the conversion of milk after award of contract will be
later referred as CONVERTER.
2. Pre-qualification: The bidder must furnish the following documents besides necessary documents as
per Clause 4.0 of NIT in order to qualify for the Technical Bid:-
2.1. Converter shall provide verified status of its current liabilities and current assets along with the
latest audited copy of final accounts for the previous year.
2.2. Bank Credit Certificate: The converter shall have to provide the detailed list of its bank
accounts and bankers name and addresses along with the credibility certificate from these
bankers.
2.3. The converter shall be required to provide a Solvency Certificate for Rs.100=00 Lacs from the
relevant District Authorities, not below the rank of Magistrates, both from the district of the
registered addresses and of the works, if separate.
2.4. The Tenderer has to provide an Affidavit mentioning the following:-
a) Detail of Assets & Liabilities.
b) Details of First charge and second charge of Financial Institutions, if any.
c) No Recovery notices by Financial Institutions for non-payment.
d) Status indicating that Unit/Tenderer is not bankrupt. Unit is not referred to BIFR or declared
Sick. Financial Institution or others have not started recovery proceedings or no receiver has
been appointed.
e) Loans and Limit details of Financial Institutions along with status of Loan repayment.
3. Technical Evaluation:
3.1 Financial documents and technical eligibility thereon would be evaluated by technical bid
committee.
3.2 A team consisting of Manager (Quality Control), Manager (Engineering), Manager (Production/
Operation) and headed by an officer not below the rank of General Manager/ Sr. Manager shall
undertake the inspection for assessment of quality of the plant & machinery, capacity to handle
and general hygienic condition in conformity to technical conditions along with checking of
overall credentials of the converter. However, non-conformity of above parameters would lead to
disqualification in eligibility criteria.
4. Lucknow Milk Union Ltd. shall finalize the party, rate and terms & conditions of hiring of plant for
the conversion of milk into SMP/ White Butter and issue letter of intent in favour of successful party
based on which agreement on non-judicial stamp paper for the same shall be signed between MILK
UNION and the Converter.
5. If the converter assigned the job conversion of milk into SMP/ White Butter, the converter will have
to enter into agreement along with furnishing of separate securities to Lucknow Milk Union Ltd.
6. The contract for conversion will be valid from February 2014 to April 2014 (as per tender notice)
and this period can be extended by another 45 days on mutually agreed basis.
7. The MILK UNION will deliver milk at the factory dock of Converter.
8. If required the converter will have to accept Quantities up to 1.0 Lac litres of Raw chilled Milk/
Skimmed Milk per day for the conversion into SMP/ White Butter. However, there will be no
guarantee for the supply of minimum quantity of skimmed milk/raw chilled milk to the converter by
the MILK UNION.
9. LMU Ltd. reserves the right to convert SMP and White Butter from any Plant keeping all economics
into mind. Converter shall not have any claim over the dairy to receive Milk.
10. Recovery: The recovery of total solids in converted products shall be as per the technical terms &
conditions.
11. Packing materials required for the packing of SMP and White Butter, so converted, shall be
supplied by MILK UNION.
12. Testing: The testing of Milk and converted products shall be as per BIS/Ag-mark procedure, using
NPL tested glass wares, as detailed in enclosed Technical specifications.
13. Converter will be responsible for the processing, operations and maintenance of the plant &
machinery and will ensure the quality compliance of converted products as per the BIS standards.
14. Unloading of packing materials, raw materials at converter’s premises/ godown will be borne by
converter.
15. Converter will manufacture only BIS standard grade SMP for which they will arrange necessary
permission of concerned authorities.
16. EARNEST MONEY:-
16.1. The bidder has to deposit a sum of Rs.1,00,000.00 (Rupees One Lac) only as earnest
money as mentioned in the Tender Notice. This is to be deposited in the form of D.D in favor
of "Lucknow Producer’s Cooperative Milk Union Ltd., Lucknow” payable at Lucknow
without which the bid will not be considered.
16.2. Earnest Money will not be acceptable in any other form except as specified in the bid
conditions.
16.3. Earnest Money will also not be adjustable against any other pending claims of the bidder
against LMU Ltd. if any.
16.4. Earnest money of all unsuccessful bidders would be refunded immediately after finalization of
the contract.
16.5. Earnest Money of successful bidder would become part of security and would be refundable
to the conditions of refund of security money.
17. SECURITY: - In case bidders offer is accepted then the deposited earnest money shall be
converted into Security Money. The Security money shall be liable to be forfeited in the event of
breach of contract in addition to any other action which LMU may think to be proper at their sole
discretion. The Security Money shall be returned to converter deducting/ adjusting outstanding dues,
if any, after successful completion of the contract period.
18. Additional security of Rs. 5.00 Lacs (Rs. Five Lacs Only) each in the form of DD for Bank
Guarantee, which shall be valid for period up to 30 days after the expiry of contract period, will be
furnished by the converter from nationalized bank, in favour of Lucknow Milk Union. Security
Amount's duration can be extended further with mutual consent.
19. Terms of payment: 100% payment due to converter shall be paid, after receipt, checking and
verification of material at the place of Lucknow Milk Unions, in a fortnight period. Converter shall
raise the bills for payment fortnightly (1-15 and 16 to end of the month) ensuring that converted
products have been received/ verified by concern milk union. Payment shall be made through D.D
with bank charges to be borne by Converter after deducting statutory dues as applicable at that time.
20. At the time of evaluation of bid, if the quoted rates and terms and conditions are found to be seriously
unbalanced, LMU may ask for additional security, in any form to keep it indemnified against any
losses arising out of it.
21. The MILK UNION supplying the raw milk and the packing materials would ensure handling of
conversion work in such a way that the cost of raw materials, packaging material and finished
products at the converter’s premises remain within the limit of security amount, submitted by the
converter, at any point of time. The MILK UNION shall also ensure to lift the finished product in
transportable lot at the earliest.
22. Comprehensive Insurance: For stocks of milk and milk products, packing materials, raw materials in
the premises of converter, a comprehensive insurance policy in favor of Milk Union will be arranged
and cost of insurance premium would be borne by the converter. The loss on account of any
unforeseen circumstances other than natural calamity, fire etc. shall be born by the converter.
23. MILK UNION will be free to post any of their officials for day to day supervision of production and
they shall be free to examine any of the record and supervise production process at any time/ all the
time. The converter has to provide proper sitting arrangement and necessary facilities for the
officials.
24. ARBITRATION : If any dispute arises between the parties under or in connection with the
contract, the same shall be referred to Milk Commissioner, Lucknow for ARBITRATION who
may hear and decide the dispute himself or his nominee for hearing and decision upon such dispute
referred. The decision of arbitrator shall be final and binding on both sides.
25. The jurisdiction of any dispute arising out of or concerning or connected with shall be the MILK
UNION’s district i.e. Lucknow.
26. BREACH OF CONTRACT: - Any expenditure incurred by LMU due to Breach of Contract on the
part of the converter affecting production/ marketing schedule will be realized out of the security
deposit of supplier in addition to any other action taken which LMU thinks proper at its sole
discretion.
27. The evaluation process of bids would be confidentially handled by LMU with no negotiations with
the parties after opening of the bid. However, negotiations with lowest validly eligible bidder with
prior permission of Chief General Manager would take place for further clarifications about rates and
details furnished by the bidder.
28. Termination : The agreement entered into may be terminated by one month either side notice at any
period of time, on account of following: -
28.1 Non-performing of the plant as per defined terms and conditions.
28.2 Default on the part of party for not following instructions for handling of milk, packing materials
and finished product.
28.3 Non-conforming of finished products to specifications specified.
29. Force Majure: The terms and conditions mutually agreed upon shall be subject to Force Majuro.
Neither the tenderer nor the employer shall be considered in default in the performance of its
obligations hereunder, if such performance is prevented or delayed because of war, hostilities,
revolution, civil commotion, strike, accident, fire, wind, flood or because of any law, order
proclamation, regulation or ordinance of any Government or any Act of God or of any other cause
weather of similar or dissimilar nature, beyond the reasonable control of the party affected. The
losses arising out of Force Majure can be resolved mutually.
30. Membership : You are required to deposit Rs.105-00 as nominal membership fee, if not deposited
earlier, which is not returnable to you. You shall not have right to vote in the affair of LMU to seek
election to any concern office and shall not have any right to claim in the profit of Union.
31. Penalty clause: If Lucknow Milk Union sustains any loss by way of any act or omission on the part
of converter, then converter shall have to compensate for the same to Lucknow Milk Union, as the
case may be and shall also be liable for the same, in court of law.
32. LMU reserves the right to approve the rates of valid tender keeping all economics in mind.
33. Secrecy of Documents: All the documents supplied by Lucknow Milk Union must be treated as
CONFIDENTIAL must be neither be copied, reproduced, transmitted or discussed otherwise in
whole or part, nor duplicated modified, divulged on discussed to any third party nor used in any other
way without consent of Lucknow Milk Union in writing.
6.0 Special Conditions of Contract
1. The eligible Converter should have own plant having facilities of making 10M.T. SMP & 4 M.T.
White Butter, per day established within the state of UP as per NIT.
2. The Converter should have the skimmed Milk Powder Plant having the capacity of 10 M.T. or
even higher per day& also the capacity of converting 4 M.T. Per day in case of White Butter. The
plant should have the capacity for additional handling up to 2.0 Lac Litres skimmed /Raw chilled
milk per day and also have the required plant & machinery for production & packing of White
Butter & S.M.P. in bulk packing. The plant should be in satisfactory working condition and in
running situation.
3. The Converter should have a three to five effect falling-film-evaporating Plant with thermal vapor
re-compression system/ vacuum system. The capacity of evaporating system shall be such which
can feed the spray drying plant in order to produce at least 10 M.T of Skimmed Milk Powder in a
day in 20 Hrs. operations without any interruption.
4. The Converter should have the spray drying plant with all its accessories, the capacity of Spray
Drying plant shall not in any case be less than 10 M.T in 20 Hrs. in a day.
5. The converter at his cost shall arrange power required for the all operation of plant. For the
operation of D.G. set, required Diesel, Mobil oil, etc. will be borne by the converter.
6. The converter shall do the conversion of only good milk. Incase of any rejection /non acceptance of
milk because of quality or otherwise reason, the tankers containing such milk shall be returned
immediately, after the verification by the joint team consisting of representatives of the MILK
UNION and converter. In no case the converter shall drain the milk.
7. The stock converted by the converter and finished products stacked at the premises cannot be
pledged or hypothecated by the converter, to any other agency. Area of storage of finished product
should be separately marked.
8. The stock of material of SMP/ White Butter prepared for the milk union, shall be kept in an
exclusive storage space both cold (deepfreeze) and dry storage (SMP) devoted for union stock
only. The space shall be segregated and custody of lock and key of those rooms (cold & dry) shall
be with concerned milk unions representative. The converter shall earmark a special and specific
schedule for converting union milk so that no remote chance of mixing of milk that given by
union and from other sources exists.
9. The Converter shall keep and maintain a power Generator of required capacity in the premises of
the plant. In case of electricity break down for any reasons, the Converter shall be liable to
maintain and carry out the production through the generator at his own cost.
10. In case of break down in the plant the Converter shall be liable to arrange to Chill /Process/storage
of entire Raw Milk, skimmed milk/concentrate and no extra payment will be given for this
operation.
11. The Converter should have the required infra-structures such as silos of required capacities,
pipelines, storage, Cream separator, Butter Churn etc. for unloading, transfer and processing of
Raw chilled Milk/Skimmed Milk to the powder plant. The converter has to ensure that
LUCKNOW MILK UNION’s Skimmed Milk / Raw Chilled Milk shall not get mix-up with each
other. LUCKNOW MILK UNION’s Milk Products such as White Butter and SMP should be
stored separately.
12. The Converted SMP & White Butter from the Converter’s plant shall be of ISI/AGMARK marked.
Every batch of product shall get clearance from respective Milk Union. If the Converted
products do not conform to above standards, then the Converter shall be liable to pay to the
concern MILK UNION all such losses and damages occurred on account of lower quality
production. The losses and damages shall be quantified & assessed by the MILK UNION,
which shall be final. The losses so quantified would be deducted from immediate due
payments or would be adjustable against security amount.
13. The converter will test the quality of milk immediately after the arrival of Milk Tanker. In case the
quality of milk deteriorate due to any reason at the end of the converter, then the converter will
have to pay the cost of full quantity of milk at the state milk grid rate.
14. The converter will maintain the log sheet for cleaning the silos, pipelines, condensing unit, drier,
butter churn, Milk Pasteurizer and cream separator etc. The sample of milk and milk products will
be tested as per BIS/Ag-mark methods. The Moisture percentage in SMP will not be more than
3.5% . SMP having more than 3.5 % moisture shall not be accepted in any case. The quality of
white butter should be AGMARK standard with minimum Fat % of 84 % and maximum 1.0%
curd. (Specifications of all products attached).
15. That the recovery of total solids (Fat and SNF) in powder (SMP) shall be at least 97.5% of total
solids (Fat & SNF) supplied in skimmed milk but in case of supply of Raw chilled milk the
recovery of total solids in SMP shall be at least 97.5% of total solid supplied in Raw Chilled
Milk. The recovery percentage of White Butter including packing shall be 98% of total Fat
supplied in raw chilled milk. If for any reasons the recovery is less than the above norms the
Converter shall be liable to make actual cost of SMP & White Butter to the MILK UNION for such
short recovery.
16. The MILK UNION shall supply the packaging material to the Converter for packing the converted
milk powder; White Butter. The Converter shall be liable for packing of all milk products during
the production. The Converter shall deliver the packed milk products at shed gate of converter’s
plant assigned for the MILK UNION on day-to-day basis. The MILK UNION shall be liable for
transportation of Milk products from shed gate of converter to MILK UNION or its godown.
17. The sanitary condition of the plant shall be maintained by the Converter as per draft code hygiene
for processing, transportation, storage and load manufacturing practices. The Manager (Quality
Control) of the MILK UNION may at any time inspect the plant and plant premises and if he
founds any shortcoming in conditions, the Converter shall remove the same at the earliest possible
time.
18. The MILK UNION shall pay the charges to the converter at lowest rates quoted in the Tender
Form/negotiation form for only the production of every Kg. of SMP & White Butter. The
Converter shall submit the bill on fortnightly basis, which shall be paid after verification etc. by the
MILK UNION within 15 days from the date of receipt of bill, after deducting any liability, if any.
19. The MILK UNION shall be at liberty to deduct any recoverable dues towards any account
mentioned earlier from the bills of the Converter at the time of payment to the Converter.
20. That MILK UNION shall have right to enter, inspect and have access to the plant at any time either
personally or through its authorized agent/agents. The converter should follow the guidelines given
by Factory Manager/Quality Control Manager/his authorized representative. MILK UNION’s
quality control representative shall have the freedom to test the Milk and Milk Powder in
Converter’s premises. The converter shall provide such facilities to test the milk and products.
21. The agreement for conversion shall be enforced for a specific period. This period may be extended
by the mutual consent of the converter and MILK Union.
22. The MILK UNION may give at least 15 days written notice to the Converter, to terminate this
contract at any time without assigning any reason. The notice shall specify the date upon which
such termination becomes effective.
23. If the Converter fails to perform part of the contract wholly or in part, the MILK UNION shall be
at liberty to forfeit the security/earnest money of the Converter and be also entitled to recover all
damages/losses for non-fulfillment of his part of the contract.
24. MILK UNION will supply loose, pasteurized, skimmed milk/ Raw Chilled milk, to Converter at
Converter’s factory premises. The MILK UNION will have to bear the cost for such transportation.
25. That any change or alteration required in the plant for conversion or in hygienic condition will have
to be done or carried out by the converter at their own cost.
26. In skimmed / Raw milk the total solid, will be calculated on the basis of both Fat % and SNF %.
The converter will have to use NPL tested lactometer and gravimetric method for SNF calculation.
The certified lactometer by gravimetric method/NPL will be duly signed and kept at both the
places. In case of any dispute in SNF the gravimetric method will be final.
27. That the SNF in whole milk will be calculated by using the following formula:
% SNF= {(CLR)/4} + 0.2*F+ 0.29
Where: CLR = Correction Lactometer Reading at 15.5 ْ C
F = Fat contents in milk
28. In Case of Skimmed Milk an additional correction factor (Skimming Factor) will be added to CLR
which is derived by gravimetric method and is as follows:
Sl. No. Lactometer at 15.5 ْ C Skimming Factor
1 30.0-32.0 1.0 L.R.
2 32.5-34.0 1.5 L.R.
3 34.5-36.0 2.0 L.R.
29. That in case of any dispute arises regarding Fat & SNF calculation in raw/skimmed milk then it
shall be decided mutually by Manager, Quality Control of the MILK UNION and Converter
representative. If they are not able to resolve the dispute, then Quality Assurance Department of
PCDF, HO will also work as controlling/ reviewing /coordinating agency for resolving the dispute
for testing of Milk and Milk Products between supplying MILK UNION and converter, whose
verdict in the matter would be final.
30. The converter should have the BIS & AGMARK license for SMP & White Butter production and
should have the complete lab facility for testing the Milk & Milk Products chemically &
bacteriologically.
31. There will be no guarantee for supplying of minimum quantity of skimmed milk/raw chilled milk
to the converter for SMP / White Butter conversion however the converter will have to accept
Quantities up to 2.0 Lac Liters of Raw chilled Milk/ Skimmed Milk per day for the conversion of
SMP/ White Butter. The upper limit of quantity for acceptance can be rescheduled towards further
higher level at the time of agreement If the converter fails to accept the above mentioned quantities
of Raw chilled milk/ Skimmed Milk the security money deposited by the converter for the same
will be forfeited and a penalty would be imposed on to the converter as deemed fit, so as to recover
the losses incurred by PCDF or its MILK UNION.
32. Hired Powder Plant shall be engaged only for SMP / White Butter conversion on day to day basis
and PCDF Ltd., will not be responsible for any liability of Converter towards plant, its operation
and staff or towards any external agency, for any reason thereof.
33. The converter shall not transfer any of the raw materials, packing materials and the converted milk
products to any other location, but to store these solely in its (converter’s) premises.
34. Workers health checkup certificate and water testing report is required to be furnished with tender
document.
35. The Converter would maintain the records of quality control for the batch wise production and a
weekly report is to be forwarded to controlling milk union.
36. The samples of raw milk supplied by the tankers shall be duly preserved and sealed with presence
of representative of milk union/ tanker driver and kept for 48 hours for re-testing and confirmation
by the supplying milk union.
37. Daily tanker report and the photocopy of the milk union receipt challan are to be sent to controlling
milk union daily by FAX and a record to be maintained by the converter.
38. Shift-wise record of milk received, production manufactured (Batch wise quantities of
accepted/rejected stock) and dispatches controlling milk union shall be maintained by the
converter. Similarly, the record of the quantities of the packing material received, utilized and
balance be kept. A report of the above commodities is to be forwarded to controlling milk union
daily by FAX.
39. The Batch numbers for the products shall be allowed by the controlling milk union and shift-wise
record of milk received, processed, manufacturing of the cream, butter and powder be kept and
batchwise report be forwarded to controlling milk union on weekly basis. Format and log-sheets
manufacturing record, stock books and reports shall be provided by the controlling milk union and
shall be adhered by the converter.
40. Converter shall maintain the log-sheet of operational parameters for condensing and drying plant
and photocopies shall be sent to the controlling milk union on weekly basis.
41. The converter should have well equipped laboratory, which shall be capable of doing all required
chemical and microbiological testings (as per the details given in product specification) of SMP
and White Butter. The converter shall also make arrangement for testing of salmonella, shigella,
listeria and staph-aureus from out side laboratory once in a month.
42. Preference will be given to ISO /HACCP certified converter.
43. Converter shall have a better warehousing facility for SMP & White Butter. SMP shall be stored in
dry, hygienic and fumigated warehouse whereas white butter shall be stored in hygienic fumigated
deep freeze at - 15C. White butter so manufactured should be hardened at 0C, before being
lifted.
44. The records and statements as prescribed by PCDF shall be maintained by the Converter
.
45. The Converter shall arrange for in house lodging facility for the staff posted for supervision of
work.
46. In no case the converter shall pack the milk products converted out of union's of milk in packing
material other than that supplied by the union and printed for milk union only.
47. For conversion one production & Q.C. staff shall be stationed in all the shifts in which milk
belonging to union is handled.
48. The cream shall be pasteurized and phosphates (-ve) before being used for the production of White
Butter.
49. A separate log sheet shall be maintained giving details of "Parag" production.
50. The Cold store temperature shall be maintained at 0-20C and in deepfreeze should not be higher
than -100C.
7.0 Specification for Skimmed Milk Powder(Standard Grade 2012-13)
The Skimmed Milk Powder shall be prepared by spray drying of fresh skimmed milk of Cow or Buffalo
or a mixture thereof. The skimmed milk shall be free from additives/adjutants. The SMP shall be white or
white with greenish tinge or light cream in colour. It shall be free from lumps, scorched particles &
extraneous matter. The added stabilizers shall not be >0.3% by mass of the finished product. It shall also
meet the following specification.
I. Moisture percentage Max. : 3.5
II. Total Solids (Milk Solid including stabilizers as per FSSAI : 96.5
III. Fat% Max : 1.5
IV. Protien % : Not < 35
V. In solubility Index Max. : 0.5 ml
VI. Total Ash (on dry matter basis) : 8.2
% by mass max.
VII. Titratable Acidity (As lactic acid)
% by mass Min. : 1.0
a. Max. : 1.5
Sodium content . : > 500
VIII. Microbiological Analysis :
Total Plate count (Not more than). : 30,000/gm
Coliform count : Absent In 0.1gm
E-coli : Absent In 0.1gm
Salmonella : Absent In 25 gm
Shigella : Absent In 25 gm
Staphylococcus aureus : Absent In 0.1gm
Y & M : Absent In 1 gm
Anaerobic Spore Count : Absent In 1 gm
Listeria monocytogens : Absent In 1 gm
8.0 Specification for White Butter 2012-13
The White butter shall be made from pasteurized cow or buffalo milk or a combination there of or
pasteurized cream of cow or buffalo or a combination there of with out ripening & without the addition
of any preservatives including common salt, colouring matter or any added flavoring agent. It shall be
free from animal, body fat, vegetable oil and fat, mineral oil and added flavour. It shall have pleasant
taste and flavour free from off flavour and rancidity. It shall be completely free from neutralized flavour.
It shall also meet the following specifications :
I. Milk Fat Percentage Min. : 84.00
II. Moisture percentage Max. : 15.50
III. a-Acidity(As Lactic Acid) %age Max. : 0.06
percentage : 0.01
b-FFA % :Not more than 0.3
IV. Curd %age (not more than) : 0.70
V. Paroxide Value ( not more than) :Not > 1.5
VI. Microbiological Analysis :
Total Plate count (Not more than). : 5000/gm
Coliform count/ml Max : 5/gm
E-coli : Absent In 0.1gm
Salmonella : Absent In 25 gm
Shigella : Absent In 25 gm
Staphylococcus aureus : Absent In 1gm
Y & M : Not more than 20/gm
Anaerobic Spore Count : Absent In 1 gm
Listeria monocytogens : Absent In 1 gm
Quality Standards :-Food Safety Standards (food products standards and food additives)
Regulation – 2011, AGMARK standard and IS : 13690:1992
LUCKNOW PRODUCER’S COOPERATIVE MILK UNION LTD.
22 JOPLING ROAD, LUCKNOW-226 001
(Ph. No.# 0522- 2207196/97)
9. FINANICAL BID
PART-II
TO BE SUBMITTED IN ORIGINAL
BID DOCUMENT FOR
HIRING OF PLANT HAVING FACILITIES FOR CONVERSION
OF MILK TO SMP & WHITE BUTTER.
(Exclusively For surplus milk of Lucknow Milk Union)
(ON HIRING / JOB CONVERSION BASIS)
*READ THE TENDER TERMS & CONDITIONS CAREFULLY
(Incharge Purchase)
9.1 FINANCIAL BID FORM
General Manager,
Lucknow Producer’s Cooperative Milk Union Ltd.,
22, Jopling Road,
Lucknow-226001.
Sub:- Bid for the Hiring of dedicated Plant for Production of SMP & White Butter on Job
conversion basis for surplus milk of LMU Ltd., Lucknow
Dear Sir.
With reference to the invitation to Tender Notice No: 8867/LMU/Pur/Conversion/2014,
Dated 20-01-2014 for the above-mentioned item, we hereby offer our rates for the hiring of Plant for
Production of SMP & White Butter on job conversion basis. Our rates are based on conversion basis as
per the terms and conditions given in this bid documents, and those as detailed below.
1.0 Net Rate:-
S. N. Name of Item (As per enclosed specification) Rates (Rs.)/Kg.
1. Production & Packing of Skimmed Milk Powder
(in 25 Kgs. Pack) from Pasteurized Skimmed Milk
2. Production & Packing of Skimmed Milk Powder from
Raw chilled /Pasteurized Mixed Milk (in 25 Kgs. Pack)
3. Production & Packing of White Butter (in 20 Kgs. Pack)
2.0 Price Basis: Rates are on Ex. works basis.
3.0 Excise Duty: Rates are inclusive of Excise Duty @....on the base price of Rs...............
OR
We are exempted from Excise Duty/ Excise Duty Not Applicable.
4.0 Sales Tax/ VAT : C.S.T @....% against Form........is included in the quoted rate. In case Form....
is not given....% will be charged extra.
OR
VAT Tax ....% included in the rate against Form........ In case Form...... is not given...% vat will
be charged extra.
OR
Sales /VatTax not applicable.
5.0 Service Tax: Rates are inclusive of service tax @..........on the base price of Rs…………
OR
Service Tax NOT Applicable.
6.0 No other tax will be paid by you/ Milk Union/ Federation except mentioned at Point no. 4.0 .
7.0 Lead Time : Conversion shall be made strictly as per schedule.
8.0 Terms of payment: 100% payment due to converter shall be paid, after receipt, checking and
verification of material at the place of consignee Milk Unions, in a fortnight period. Converter
shall raise the bills for payment fortnightly (1-15 and 16 to end of the month) ensuring that
converted products have been received/ verified by concern milk union. Payment shall be made
through D.D with bank charges to be borne by Converter.
9.0 Price Revision :
(a) We understand that no price revision shall be allowed to us except changes in Govt. levies on
finished products, which will be admissible as extra, on furnishing documentary proof by us.
(b) We understand that due to increase in turnover of firm, any change in rate of Excise Duty shall
not be admissible to us.
10.0 Penal Clause: We accept the penal clause mentioned in the bid documents unconditionally.
There will be no guarantee for supplying of minimum quantity of skimmed milk/raw chilled milk
to the party for SMP/White Butter conversion. However, we will accept quantities up to 2.0 lac
Litres of raw chilled Milk/ Skimmed Milk per day for the conversion of SMP/White Butter. If we
fail to accept the above mentioned quantities of Raw chilled milk/ Skimmed Milk, the security
money
11. deposited by us will be forfeited and/or a suitable penalty would be imposed on us as deemed fit
so as to compensate the losses incurred by Lucknow Milk Union.
12. Security Money: We understand that if our rates are approved, the deposited earnest money
shall be converted to part of security money. The security money shall be liable to be forfeited in
the event of breach of contract. In addition to any other action that Lucknow Milk Union may
think to be proper at their sole discretion shall be acceptable to us. The security money shall be
returned after successful completion of the contract period. We understand that this amount is not
to bear any interest. We shall fulfill the remaining security obligation as per Clause No. 18 of
General Conditions of Contract.
We have satisfied ourselves with the conversion job to be carried by us and carefully perused the
terms and condition of the bid documents, specification and we hereby confirm to execute the conversion
on owner’s behalf. The rates quoted are inclusive of all taxes.
We understand that you are not bound to accept the lowest or any bid you may receive. We also
understand that you will not accept those bids, which are not in conformity to the prescribed terms and
conditions.
Thanking you.
Date:
Postal Address:
Telephone No. Name:
FAX NO: Seal