procurement procedures/manual for goods and services · 25.0 splitting of quantities ... 43.0...
TRANSCRIPT
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Procurement Procedures/Manual
For Goods and Services
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TABLE OF CONTENTS
1.0 INTRODUCTION ....................................................................................................................... 4
2.0 PROCUREMENT STRATEGY ....................................................................................................... 6
3.0 SCOPE OF WORK (SOW) / SPECIFICATIONS ............................................................................... 8
4.0 BID EVALUATION CRITERIA (BEC) ............................................................................................. 9
5.0 RAISING OF PR ....................................................................................................................... 14
6.0 MODE OF TENDERING FOR PROCUREMENT OF GOODS, WORKS AND SERVICES ....................... 18
7.0 SYSTEM OF TENDERING ......................................................................................................... 29
8.0 BID INVITATION AND BID RECEIPT .......................................................................................... 32
9.0 CANCELLATION / RE-INVITATION OF TENDERS ........................................................................ 40
10.0 RECEIPT OF TENDERS ............................................................................................................. 40
11.0 TENDER BOX AND ITS CUSTODY ............................................................................................. 42
12.0 NOMINATION OF TENDER RECEIVING/OPENING OFFICER(S) ................................................... 42
13.0 ACCOUNTING OF TENDERS..................................................................................................... 42
14.0 WITHDRAWAL OF BIDS .......................................................................................................... 43
15.0 OPENING OF TENDERS ........................................................................................................... 43
16.0 EXTENSION OF DUE DATE FOR SUBMISSION OF BID ................................................................ 45
17.0 EARNEST MONEY DEPOSIT/BID SECURITY/BID BOND ............................................................. 45
18.0 TENDER COMMITTEE ............................................................................................................. 48
19.0 TIME SCHEDULE FOR VARIOUS ACTIVITIES FOR EVALUATION AND AWARD ............................. 50
20.0 EVALUATION OF BIDS ............................................................................................................ 52
21.0 CLARIFICATION FROM BIDDERS AFTER TENDER OPENING ....................................................... 53
22.0 REASONABILITY OF RATES ...................................................................................................... 56
23.0 INSUFFICIENT ACCEPTABLE BIDS ............................................................................................ 57
24.0 NEGOTIATION ....................................................................................................................... 57
25.0 SPLITTING OF QUANTITIES ..................................................................................................... 58
26.0 PLACEMENT OF ORDER .......................................................................................................... 59
27.0 PERFORMANCE SECURITY ...................................................................................................... 59
28.0 REPEAT ORDERS FOR SUPPLY OF GOODS/MATERIALS (PURCHASE ORDERS) ............................ 64
29.0 EXTENSION OF SERVICE CONTRACTS ...................................................................................... 65
30.0 PUBLIC PROCUREMENT POLICY FOR MICRO AND SMALL ENTERPRISES (MSES) ........................ 66
31.0 E-PROCUREMENT .................................................................................................................. 69
32.0 E-REVERSE AUCTION .............................................................................................................. 72
33.0 EXPRESSION OF INTEREST (EOI) .............................................................................................. 77
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34.0 PROCUREMENT FOR E&P JOB UNDER PRODUCTION SHARING CONTRACT (PSC) ...................... 78
35.0 CENTRALIZED PROCUREMENT ................................................................................................ 78
36.0 EMPANELMENT OF VENDOR / CONTRACTOR / CONSULTANT / SERVICE PROVIDER FOR LIMITED
TENDERING ...................................................................................................................................... 79
37.0 STANDARDIZATION OF BEC .................................................................................................... 79
38.0 CORRESPONDENCE WITH BIDDERS ......................................................................................... 80
39.0 HANDLING OF COMPLAINT / REPRESENTATION / ARBITRATION ............................................. 80
40.0 THE INTEGRITY PACT (IP) ........................................................................................................ 81
41.0 PROCEDURE FOR OBTAINING DGCA PERMIT AND EXPLOSIVE LICENCE .................................... 82
42.0 PROCUREMENT OF MEDICINE ................................................................................................ 84
43.0 CONTRACT RELATING TO CIVIL WORKS / SERVICES AND HIRING OF TRANSPORT SERVICES AT
FIELD HEADQUARTERS FOR MAINTENANCE & DAY TO DAY REQUIREMENT ........................................ 85
44.0 TRANSPORT SERVICE CONTRACTS .......................................................................................... 88
45.0 MODIFICATION/AMENDMENT TO THE MANUAL .................................................................... 91
46.0 DEVIATION TO THE MANUAL ................................................................................................. 92
47.0 CLARIFICATION TO THE PROCEDURE ...................................................................................... 92
48.0 CIRCULAR, INSTRUCTION, ADVICES ETC. REGARDING PROCUREMENT PROCESS ...................... 92
49.0 NON-APPLICABILITY OF THIS PROCEDURE .............................................................................. 93
50.0 POST AWARD ACTIVITIES ....................................................................................................... 93
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1.0 INTRODUCTION
1.1 Oil India Limited is a wholly owned Government of India Enterprise
engaged in the business of exploration, production and transportation of
crude oil and natural gas. OIL is operating in various domestic as well as
international blocks. OIL has operation overseas as well as participating
interest in E&P business. Procurement of goods and services is of
paramount requirement to ensure uninterrupted operational activities in
OIL. The procurement system in OIL is de-centralized in federal manner.
While the requirement of at Company's Field Headquarters is met through
procurement at Duliajan, the other spheres / projects are doing
procurement for materials, works, services and consultancy at respective
unit.
1.2 C&P DEPARTMENT AT DULIAJAN
All the requirements of the Company for its operation at Fields are met
by the C&P Department situated at Duliajan. The requirement varies
from the procurement of indigenous and imported goods to hiring of rigs,
logging services, cementing services, vehicles and framing of works
contracts, labour contracts, man management contract etc. In addition,
requirement of other spheres may also be met from this office from time
to time as and when required against specific request.
1.3 CONTRACT & PURCHASE DEPARTMENTAT CALCUTTA BRANCH
Procurement from indigenous sources is also made by the Calcutta
Branch situated at Kolkata. This Branch is responsible for procurement
of the materials (from indigenous sources only) against requisitions
raised by Duliajan C&P Department and other Spheres / Projects and
transportation of goods to respective places.
Further, the Calcutta Branch arranges opening of Letter of Credit etc. to
the foreign suppliers, Shipment of goods (by sea, air, courier etc.),
Customs clearance of the goods and transportation of the same to
Duliajan and other Spheres/Projects of the Company.
1.4 CONTRACT & PURCHASE DEPARTMENT AT PIPELINE HEAD
QUARTER AND OTHER PROJECTS
All the Project offices and the Pipeline Headquarters at Guwahati are
having C&P set up primarily to cater for their needs for acquiring goods
and services / works.
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1.5 CONTRACT & PURCHASE DEPARTMENT AT CORPORATE OFFICE
Procurement of goods and hiring of services are processed by Contract &
Purchase Department for Corporate office. In addition, this department
also deals with the following:
i. Processing for obtaining approval of the Board/ CBC/ Concerned
Functional Director.
ii. Liaison with DGH, various ministries & Govt. Offices.
iii. This office expedites / follows up issuance of EC from DGH,
clearance from DGCA. This office also co-ordinates with Transchart,
Ministry of Surface Transport in relation to freight charges in case
of imports so as to take decision, whether order should be placed
on C&F or FOB basis.
1.6 OBJECTIVE OF THIS MANUAL
The primary purpose of this Manual is to constitute a reference, provide
basic guidance and to outline the general methodology to be considered
while exercising procurement functions for timely availability of goods
and services in the most transparent and competitive manner. The
Manual is designed considering standard strategies, policies and best
procurement practices in the industry.
The objective of this Manual is to effectively ensure –
i. Economy and quality procurement of goods, services and
works
ii. Uniform practice and methodology/procedures across OIL
iii. Transparency and fairness in procurement
iv. Responsibility and accountability
v. Compliance to statutory regulations
This Manual is to be followed uniformly throughout the company in the
manner defined and designated. The laid down principles and
procedures detailed in the Manual is not restrictive. Deviation from the
Manual shall not tantamount to violation of procedure provided
appropriate approval is obtained for such departures which are within
the basic philosophy of procurement.
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2.0 PROCUREMENT STRATEGY
2.1 P ROJECT PROCUREMENT STRATEGY:
2.1.1 Process of designing procurement strategy for large projects (Cost
estimate > Rs100 Crores) should normally be aimed to decide what parts
can be done in- house and which parts need to be outsourced for timely
completion of the project in an effective manner, also by maintaining
competition and ensuring performance.
2.1.2 Procurement strategy shall be decided by a committee consisting of
members from indenting department, C&P department and Finance.
This committee shall examine the project requirement and recommend
efficient, manageable and cost effective strategy for procurement.
2.1.3 Procurement strategies for large projects:
a. EPC/LSTK: The entire project from engineering, procurement and
construction maybe contracted out to a single contractor on a
lumpsum turnkey basis. The contractor could then use sub-
contractors as necessary and will do the project management for the
same as well. Necessary provision should be provided in the tender
document regarding acceptability of sub-contractors with the approval
of OIL.
b. Mixed contracting : The project management role will be carried out by
OIL and there will be separate contractors for
Engineering/Procurement and Construction. This type of contract
allows better control for OIL and could lead to improved project
performance in terms of timely completion, expected performance,
cost competitiveness.
2.1.4 Guideline about deciding on level of outsourcing in projects:
Two key considerations to be considered by OIL in determining the
contracting strategy are (a) OIL's expertise in project management
(including ability to manage multiple interfaces) in specific type of project
being considered and (b) criticality of the project.
(i) If the project is critical and OIL does not possess the requisite
experience in project management (including ability to manage
multiple interfaces) in the specific type of project then EPC /
LSTK contracts should be preferred.
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(ii) If the project is critical and OIL possesses the requisite experience
in project management (including ability to manage multiple
interfaces), then OIL should prefer Mixed type of contracting.
(iii) If the project is not critical and OIL possesses some reasonable
experience in project management (including ability to manage
multiple interfaces) in the specific type of project then Mixed
contracting should be considered subject to availability of the
professionals.
The engagement of project management consultant may be considered for
Sl. No. (i) & (ii) above.
2.2 BID PACKAGE CREATION:
2.2.1 The objective of bid packaging is to divide the requirement of the project
into a manageable number of suitable bid packages so as to produce the
maximum competitive response from bidders. This exercise of dividing the
procurement in different packages is done in the interest of economy,
efficiency and timely completion/delivery. The packaging should be done
in such a manner that it does not limit the participation by bidders.
While doing this exercise apart from nature and value of goods, works
and services being grouped into packages, one must also know the
conditions of potential market of sources of supply of materials, works
and services.
In the process of breaking-down the total project cost into a smaller
packages the following factors may be considered:
(i) Such packages should be compatible considering the prospective
bidders. Thus, the contents of the package should be inter related
in such a manner that prospective bidder can tie up with suppliers
of the various equipments, works and services involved in order to
be able to bid for the entire package. This will ensure adequate
participation in bidding and consequent procurement at optimum
cost.
(ii) The number of packages and the sizes should be at an optimum
level for effective implementation.
(iii) The terminal points of each package should be clearly defined and
proper tie-ups of these terminal points between packages ensured.
(iv) While forming the packages it should be ensured that scope and
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specification of the package is made in such a manner that it
ensures enough participation by the bidders.
2.2.2 APPROVAL:
The recommendation of the committee consisting of members from C&P,
indenting Department and Finance in respect of procurement strategy
and packaging shall require approval of LMC / Head of Project.
2.3 PROCUREMENT STRATEGY FOR GOODS/SERVICES
2.3.1 Purchase of frequently ordered goods/services :
a. For common items required continuously throughout the year in
large quantities, common services hired repeatedly through the year,
rate contracts should preferably be entered into.
b. Items/Services for which rate contract should be concluded will be
identified and the list will be reviewed and additions made every year
depending upon the past consumption or on anticipated
consumption. Rate contracts will not be entered in the case of
items/services for which the market shows marked downward trend.
In order to provide against a rise/fall in the market price during the
currency of the rate contracts, the contract may include the standard
Fall Clause.
c. Alternatively in case of the items and services where sharp price
fluctuation is envisaged a “Frame work Agreement” may be made
after freezing all technical and commercial conditions. This shall
enable to seek only prices against such agreement after giving short
notice.
d. A rate contract or framework agreement should be entered into on the
basis of open competitive bidding.
3.0 SCOPE OF WORK (SOW) / SPECIFICATIONS
In order to have proper and competitive offers the specification and scope
of work for materials, goods, services /works should be complete and
unambiguous. Wherever necessary, the relevant drawings, data sheets,
samples in relation to the works involved should be provided.
3.1 The specification should be drawn up in general terms without quoting
reference to any particular firm or referring the model of a particular firm.
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3.2 The indentor should avoid drawing of specification which ends up in
procurement of proprietary item except in cases where proprietary
procurement is unavoidable. The specification for standard items which
are commonly in use should be standardized for uniform use in OIL.
While raising requirement for such item, no further specification be
prepared and the one which is standardized must be used.
3.3 The scope of work/services/supply and specification shall be prepared by
indenting department and will have the approval of competent authority
who approves the PR as per DoP.
3.4 The bidder should be given a reasonable time for mobilization of
equipment, delivery of goods/materials, completion of jobs by specifying
appropriate time period in the tenders. This shall enable bidders to quote
competitive price and avoid unnecessarily loading their price for likely
compensation for delay (liquidated damages). While raising PR where
installation and commissioning is involved, specific time frame towards
installation and commissioning period to be indicated which will help in
getting competitive offers and no ambiguity during evaluation. Wherever
there is requirement of installation and commissioning a separate period
shall be defined in the tender document for the same within the overall
completion schedule.
3.5 In addition to above, in case of LSTK and civil works all necessary
information, service detail etc. which are available with OIL to be provided
in the tender documents.
4.0 BID EVALUATION CRITERIA (BEC)
4.1 The Bid Evaluation Criteria (BEC) is to be formulated while seeking the
bids on open tender basis. The purpose of BEC is that only the
competent bidders who can supply / execute the job and provide the
services as per technical and commercial criteria, scope of the tender
document, are shortlisted. The BEC shall have technical as well as
commercial criteria for examining the bids.
In case of limited tenders where vendor empanelment has not been
done, the BEC shall be incorporated in such tenders also and uploaded
in the OIL / Govt. websites so that any capable bidder may download
and submit the bid.
4.2 Utmost care should be taken in formulating BEC so that the ultimate
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objective of purchasing function, i.e. procuring the required materials /
services / works as per required specifications, delivery/completion
schedule at most competitive prices, is met.
4.3 The capability / eligibility of a bidder is assessed for technical
competence based on the similar past experience of execution /
manufacturing / service providing and availability of relevant facilities for
performing the job as per relevant standard.
The financial strength of the bidder is assessed through a scrutiny of
financial document such as profit & loss statement, balance sheet with
reference to turnover, net worth and other financial parameters.
4.4 While the factors relating to experience and manufacturing / fabrication
capability are more relevant and important for orders pertaining to
supplies; experience and financial soundness assume relatively higher
importance and relevance while assessing capability of contractors for
construction works, turnkey jobs and services to be provided by them.
4.5 The BEC and other relevant tender condition should be made in such a
manner that the competent bidders participate in the tender and there is
sufficient participation, the BEC should never be framed keeping in view
a particular bidder / bidders. As far as possible the BEC should be
general in nature meeting the job requirement ensuring adequate
competition without compromising on quality / competence of the
bidder.
4.6 FINANCIAL CRITERIA:
The following financial criteria should be included in open tender in
order to ascertain financial soundness of the bidders:
Sl.
No.
Financial Criteria (to be considered from the original bid
closing date)
1 Annual Turnover
Value (i) 50% (*) of the estimated value for all
cases where execution / delivery
period is less than one year.
(ii) 50% (*) of the annualized estimated
value for all cases where
execution/delivery period is more
than one year.
For consortium At least one member of the consortium
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to meet the above criteria of 50%
turnover.
The other members of consortium
should meet minimum 25% turnover
requirement.
Period for
consideration
In any of preceding 3 financial years
2 Net worth Positive for preceding financial /
accounting year
* In case of civil / service contracts up to a ceiling of Rs. 5 Crores, the
turnover shall be 30% of the estimate, which are normally executed by
local contractors; the socio-economic condition is also under
consideration.
4.7 TECHNICAL CRITERIA:
4.7.1 Purchase:
i) Experience of manufacturing and supply of similar equipment /
materials / plant in previous 5 (five) years to be reckoned from the
original stipulated bid closing date of the tender.
ii) Availability of manufacturing / fabrication facility with adequate
testing /quality assurance facility as per applicable codes, if required
considering the nature of items.
iii) The bidder should have experience of successfully executing at
least 1(one) similar order for 50% of the estimated value in preceding
5(five) years.
In case of rate contract for supply of bulk materials / off the shelf items
/ consumables etc. the bidder should have executed at least 50% of the
annualized value of the estimate under the tender in one year, of the
preceding 5(five) years.
iv) If the experience can be specified in terms of technical parameters,
the criterion of similar works experience may not be necessary to be
specified in terms of value.
v) “Similar order” if specified in BEC must be clearly defined in the
tender documents.
4.7.2 Works (including LSTK) / Services / Consultancy :
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i) Experience of at least one similar work of about 50% of value of
work under tender in previous 7 (seven) years to be reckoned from the
original bid closing date.
In case of Rate / Maintenance / Service Contract, experience of at least
one similar work of about 50% of annualized value of work under tender
in previous 7(seven) years is to be considered.
ii) “Similar Works” if specified in BEC must be clearly defined in the
tender documents.
iii) If the experience can be specified in terms of technical
parameters, the criterion of similar works experience may not be
necessary to be specified in terms of value.
4.7.3 In case of tenders for Annual rate contracts / Maintenance and Service
contracts, if the prospective bidder is executing rate / maintenance /
service contract which is still running and the contract value / quantity
executed prior to due date of bid submission is equal to or more than
the minimum prescribed value in the BEC such experience will also be
taken in to consideration provided that the bidder has submitted
satisfactory work / supply / service execution certificate issued by end
user.
4.7.4 The above regarding the BEC are the general guidelines to be considered
while formulating bid evaluation criteria. The indenting department
concerned, with due reasoning, may suitably formulate the BEC
depending upon the job requirements and the same shall not be treated
as deviation to the procedure. While making BEC, the prime objective is
that only capable bidders are qualified. At the same time, there should
be sufficient participation.
4.7.5 A job executed by a bidder for its own organization / subsidiary cannot
be considered as experience for the purpose of meeting BEC.
4.8 APPROVAL OF BID EVALUATION CRITERIA:
In case of tender being processed through open advertisement a
suitable BEC needs to be formulated covering technical as well as
commercial aspects. On recommendation of tender committee the
competent authority as per Delegation of Power (DOP) shall approve the
proposed BEC.
4.9 MODIFICATION / AMENDMENT TO BEC:
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Modification to BEC is not desirable and shall be avoided. However, as a
result of Pre-Bid Conference or any other valid reason, if modification to
BEC is inevitable, on recommendation of Tender Committee with full
justification the modification can be approved by the competent
authority as per DoP.
Modification to BEC is not permitted after the receipt of the bids.
4.10 BID REJECTION CRITERIA (BRC):
It is important to explicitly include all such terms and conditions which
are considered absolutely necessary to be accepted by bidder without
any deviation. Tender document should have a stipulation that
deviation to such criteria shall make the bid liable for rejection. Broadly
the following are to be included in the tender as bid rejection criteria :
a) Deviation to the following provision of the tender document :
i. Firm price
ii. EMD / Bid Bond
iii. Scope of work
iv. Specifications
v. Price Schedule
vi. Delivery / Completion Schedule
vii. Period of Validity of Bid
viii. Liquidated Damages
ix. Performance Bank Guarantee / Security deposit
x. Guarantee of material / work
xi. Arbitration / Resolution of Dispute
xii. Force Majeure
xiii. Applicable Laws
xiv. Integrity Pact, if applicable
xv. Any other condition specifically mentioned in the tender
documents elsewhere that non-compliance of the clause lead to
rejection of the bid.
4.11 LOADING CRITERIA:
4.11.1 In case there are certain foreseen acceptable deviations which can be
loaded financially, the same needs to be indicated in the tender
document along with quantum / rate of loading.
4.11.2 In case OIL opts to supply cement, steel etc. to the contractor, the
bidders are required to quote the consumption and OIL is to indicate in
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the tender upfront the rate for loading of price for such items in case of
turnkey packages.
4.11.3 The stipulation in case of OIL providing steam, power and other such
utilities for consumption by the contractor, the bidder to quote the
consumption and the tender should have the rate for loading such
consumption.
4.11.4 In addition to above, if there are any other factors which impact the
price evaluation, the same needs to be mentioned in the tender
document. Further the tender document should contain the method of
evaluation for such factors in unambiguous manner while evaluating
the price bid.
5.0 RAISING OF PR
5.1 For procurement of stock items, purchase requisition shall be raised by
C&P department, being indentor for such items.
5.2 In case of non-stock items, the procurement requisition shall be raised
by user department for supply, services, works, LSTK jobs etc.
5.2.1 The indentor will provide along with PR the following :
i) Scope and specification for supply, services, works involved under
the PR in a manner as explained herein before in para 3.0.
ii) The estimate for the scope covered under the PR for goods, works
and services which shall be used for tendering purpose and
decision making process for award while comparing with the actual
price received against the tender.
Wherever it is not possible for complex cases to give very accurate
estimate as it may require further inputs, an estimate for tendering
purpose may be provided with the PR. The detail estimate shall be
provided before the due date of bid submission which shall be
considered for decision making process for award.
iii) It is desirable that the indenter who shall frame qualifying criteria
(technical & experience) also indicate the numbers and names of
the prospective bidders who are likely to qualify under the
proposed BEC. However, it may happen that during the actual
tendering the response may be more or less as compared to
mentioned in the PR. This shall give fair idea about participation.
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Further procurement personnel may inform such bidders in
advance about the tender as proactive action.
iv) For stock items last order reference/budgetary quotation may be
used for price comparison purpose.
v) Budget provision and Expenditure Sanction with fund allocation.
vi) Schedule of Rates, with full description of items, their quantities,
blank price column.
vii) Detailed technical specification for bidding purposes.
viii) The date by which the delivery/work to be completed.
ix) The delivery/completion period should be realistic as the bids
become liable for rejection on the same grounds.
x) The Purchase Requisition must indicate the type of budget with job
number.
xi) If the invitation of bids is to be done on limited tender basis beyond
the threshold limit for limited tender, the Purchase Requisition
shall indicate about the approval of competent authority as per
DOP duly mentioning the grounds of resorting to limited tendering
and the names of the parties whom the indentor considers as
capable and competent may be specified in the Purchase
Requisition.
xii) If the invitation of bids is to be done on single source/nomination
basis, the indentor should provide the approval of competent
authority as per DOP with full justification as to resorting on
nomination basis for the particular item/services/works and
selection of a particular source. The hard copy of the Purchase
Requisition shall accompany the original approval of the competent
authority for invitation of the bid on single bid basis.
xii) In case an item is to be procured on proprietary basis, the PR shall
be approved by the competent authority as per DoP certifying in
the PR itself that the item/services is proprietary and there is no
other alternative. Further the PR should include the name and
address of the party from whom the item is to be procured.
xiii) In case of emergency as defined at para no.6.14 and declared by
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the Management, the normal procurement procedure may not be
applicable. However, the procurement should be done with
application of normal prudence and maintaining transparency.
xiv) In the event of breakdown / capital overhaul of an equipment or
major facility revamp works & services, where it may not be
possible to assess the extent of repair action (at bidding stage) and
cost estimates, the expenditure sanction may be obtained post
inspection but before start of works. This is applicable only in case
of equipment repairs through OEM / their authorized workshop. In
case of facility repair / revamp such assessments should be carried
out by a committee of representatives from Indenting Department,
Finance Department & Contracts Department. In all the above
cases, approval of the competent authority and expenditure
sanction for emergency works as per DOP is required.
xiv) As per Notification No: 12/2012-Customs dated 17.03.2012 issued
by Ministry of Finance under Srl. No. 356, 357, 358 & 359, there
are benefit of Zero Custom Duty and other benefit of Deemed
Export as covered under Exim Policy. Therefore it is essential that
PR contains the name of the items which falls under such category,
name of area of use so as to have suitable provision in the tender
document.
xv) Time schedule for utilisation of material/equipment being procured
including schedule of readiness of the front/site for erection and
commissioning, if any.
xvi) Bid Evaluation Criteria
xvii) Special Conditions of Contract.
5.3 COST ESTIMATE:
a) The cost estimate is a very important factor in decision making
process for procurement. Therefore, the cost estimate should be realistic
and real time so as to achieve economy and efficiency in procurement. In
cost estimation, important factor inter alia following may be considered:
i) The established engineering practices for cost estimation.
ii) Last purchase price for similar items / works / services.
iii) CPWD, DGS&D rates and DSR.
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iv) Costing details and data available from other sources like CPSUs.
v) Market price trend analysis.
vi) While drawing reference to the last purchase price, indices like
Wholesale Price Index (WPI), Consumer Price Index (CPI), Metal
indices, Foreign exchange fluctuation, oil price movement etc. may
also be considered for a realistic estimate.
vii) Budgetary quotation. While estimate based on budgetary quotation
is not a preferred method, wherever necessary the budgetary
quotation should be obtained after giving complete detail and scope
of specification. It is preferred to have minimum 3 (three) budgetary
quotations and draw an average out of this.
b) Both the item wise and total cost estimates are important for taking
decision for procurement and are also important for evaluation of bids.
5.3.1 If in-house expertise is not available for estimation, service of the reputed
project management consultants who have the facilities for cost
estimation can also be availed for complex and major cases.
5.3.2 Review of Estimate
The variation between cost estimate and the lowest of evaluated bid
price shall call for review of the estimate. Such review needs to be done
more exhaustively where the variation of the price is more than 10% of
the cost estimate. This analysis is required to arrive at proper decision
for placing order as well as keeping in view the other aspects like
project schedule / operation etc.
5.4 BUDGET & TECHNICAL SANCTION:
5.4.1 TECHNICAL SANCTION
A proper detailed cost estimate based on specification, essential
drawings and preliminary structural and service designs shall be
prepared to accord approval by the competent authority. The Sanction
to the estimate must be obtained before the bids are invited. It indicates
only to the extent that the proposals are structurally sound and the
estimates are accurately calculated and based on adequate data.
5.4.2 BUDGET SANCTION
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Budget Sanction to a project or part thereof shall be accorded by the
competent authority according to DOP.
Budget sanction shall be accorded on the basis of cost estimates and
the scope of work.
5.5 EXCESS OVER BUDGET SANCTION:
In case, any excess over the sanctioned amount is known before bidding
or during bidding, the bidding process shall not be held up for want of
additional Budget sanction. However, LOI /Award of work/ Letter of
Award (LOA) shall not be issued without obtaining expenditure sanction
inclusive of additional sanction, if any. Parallel action shall be taken by
Indenting Department for additional budget sanction.
5.6 BID EVALUATION CRITERIA (BEC):
The Bid Evaluation Criteria (BEC), wherever applicable, shall be
prepared by the user department and forwarded to Commercial
department along with the Purchase Requisition for the Works / Goods
/ services.
6.0 MODE OF TENDERING FOR PROCUREMENT OF GOODS, WORKS AND
SERVICES
6.1 In Public Procurement the preferred mode is procurement through
invitation of open tender. However, same may not be feasible for
procurement of goods, works and services in case of, lower values,
operational requirement at various sites. Therefore, there are other
methods of procurement to cater the necessary requirement.
6.2 Generally the following methods of procurements for goods, works and
services are considered :
a. Procurement through DGS&D
b. Open Domestic Tender
c. Limited Domestic Tender
d. Open International Competitive Bidding (ICB)
e. Limited International Competitive Bidding (LICB)
f. Procurement on nomination basis
g. OEM / Proprietary procurement
h. Petty procurement of goods / works / services through hand
quotation
i. Annual Rate Contract
j. Purchase by a Board of Officers
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k. Emergency Purchases
l. Procurement from Govt. Cooperatives, such as Kendriya
Bhandar, State Emporium, Govt. Department, Central & State
PSUs.
6.3 PURCHASE THROUGH DGS&D
6.3.1 OIL should consider taking advantage of the DGS&D Rate/Running
Contract when such contract exists and the delivery period suits our
requirement as no separate tenders need be invited when the delivery
period stipulated in the DGS&D Rate/Running Contracts is acceptable
leading to time and cost savings. Such orders can be placed on DGS&D's
terms and conditions with the option of inspection being done by OIL or
third party nominated by OIL or with OIL terms and conditions with
consent from the rate contractor. The Purchase Officer may place a direct
supply order on the DGS&D Rate contractors on DGS&D rates with the
approval of Competent Authority. The order can be placed directly on the
rate contractor with lowest DGS&D rate. If there are multiple contractors
offering the lowest DGS&D rate, contractors will be selected on rotation
basis.
6.3.2 List of DGS&D rate contracts is available on DGS&D's website. All
Spheres / Projects are required to use the same, as required, to take
advantage of DGS&D rate contracts. In case the DGS&D rate contract
also includes the name of dealer/distributor in addition to the OEM,
then first effort should be made to procure directly from OEM. In case,
OEM does not respond, then the procurement can be done through the
dealer/distributor mentioned in the DGS&D rate contract.
6.3.3 In case such direct/referral supply orders are placed, OIL is liable to pay
a nominal fee as Departmental Charges (as informed by DGS&D from
time to time). Such departmental charges will be first deposited by
vendor to the concerned Controller of Accounts and then claimed for
reimbursement from OIL against supporting documents.
6.4 OPEN TENDERS:
6.4.1 All procurement of Materials/Works/Services whose value is more than
Rs.10.00 lakhs shall be procured through open tenders.
6.4.2 Open tender shall be advertised through Press Advertisement which shall
be published at least in two National Daily and in one Hindi Newspaper
and / or local language daily published locally in the state where the site
of work is located.
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6.4.3 The Notice inviting Tender (NIT) shall be published by the PR Department
who shall provide a copy of advertised NIT to the concerned tender
issuing department.
6.4.4 The concerned section of C&P Department shall forward the copy of
Invitation to Bid to PR Department for publishing Tender Notice in the
newspapers in the formats:
OIL INDIA LIMITED
(A Government of India Enterprise)
P.O. Duliajan-786602, Assam, India
E-mail:
INVITATION FOR BID
OIL INDIA LIMITED invites Local Competitive Bid (LCB)/International
Competitive Bid (ICB) through its e-procurement portal
https://etender.srm.oilindia.in/irj/portal for the following items:
TENDER NO BID CLOSING/
OPENING DATE ITEM & QTY
Tender fee (Non-refundable): Rs_____; Bid Closing/Opening Time: _______; Last
date for submission of tender fee-one week prior to bid closing date. The
complete bid documents and details for purchasing bid documents,
participation in E-tenders are available on OIL’s e-procurement portal
https://etender.srm.oilindia.in/irj/portalas well as OIL’s website www.oil-
india.com.
NOTE: All addenda, Corrigenda, time extension etc. to the tenders will be
hosted on above website and e- portal only and no separate notification shall be
issued in the press. Bidders should regularly visit above website and e-portal to
keep themselves updated.
6.4.5 Amendments to the NIT after its issue will be published on OIL’s website
only.
The following disclaimer to be included in all NITs :
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Revision, clarification, addendum, corrigendum, time extension etc. to
the tender will be hosted on OIL website only. No separate notification
shall be issued in the press. Prospective bidders are requested to visit
website regularly to keep themselves updated.
If the original tender is substantially modified affecting the important
tender condition like scope of work / specification / delivery period /
mobilization period / completion period, for better transparency and
participation by maximum prospective bidders, it shall be prudent to
extend the due date of submission so as to provide required time for
bidder to take care of the changes.
6.4.6 C&P In-charge shall designate an officer well conversant with the
procedure, who shall be responsible for correctness of NITs being
uploaded on the web-site or published in the newspaper.
6.4.7 Tender document shall be uploaded on OIL website, CPPP as well as
Govt. website.
6.4.8 Sale of document (in case of physical tendering) shall continue up to one
day prior to the Bid closing date as advertised in the NIT.
6.4.9 In case of e-tendering the bidder shall require User ID and Password for
online submission of Bid. The tender document should specify clearly
that in case of new prospective bidders who do not have User ID and
Password, the bidder shall request OIL for the issue of the same well in
advance and OIL will take up to 5 working days to issue the same.
Therefore bidder should not delay in making request till the last moment
in their own interest. In case of delay because of late request by the
bidders OIL shall not be responsible for non-submission of Bid in
absence of user ID and Password.
Alternatively, User ID and Password may be generated online by the
bidders by using the link for supplier enlistment given in OIL’s e-tender
portal.
6.4.10 In cases where open tender is not resorted to for any procurement of
materials / works / services, even though the value exceeds the limit as
stated in para-6.4.1 and it is considered expeditious and appropriate,
the limited tender may be resorted to with due approval by the LMC /
Head of the Project concerned. While seeking approval for resorting to
limited tendering instead of open tendering the reasons for same shall
be recorded in writing. List of the supplier / contractor to whom the
tender is to be issued shall also be provided by indentor The cases, for
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which the competent approving authority is Director / CBC / Board,
the LMC / Head of Project or Sphere shall be competent authority for
approval to issue limited tender. In processing the limited tendering
cases it should be ensured that the parties meet the bid evaluation
criteria as the rejection of the bid on technical suitability grounds is not
desirable in such cases.
Such tender shall be hosted on the web site with qualifying criteria and
bidder, other than those to whom the tender enquiry is addressed, shall
request OIL with their credentials for enlistment for that specific
items/services for future procurement, which will be decided by OIL
after verifying the credentials.
6.5 LIMITED TENDERING:
6.5.1 All procurement of Materials/Works/Services whose value is less than
the threshold value for open tenders (presently Rs.10.00 Lakhs) may be
through limited tenders. Limited Tendering shall be resorted to and
enquiry be issued to only those vendors/contractors who have been
empanelled / prequalified as per the laid down procedure.
However, if number of vendors in such cases is less than 5(five), the
tender should be floated either on open tender basis or should have
approval of one level above the competent authority.
6.5.2 In case of limited tendering where vendors are empanelled through a
transparent laid down procedure giving opportunity to all such
empanelled bidders, the tender shall be hosted on website only for
information.
6.5.3 In case, limited tenders are proposed to be invited (as against open
tender based on value of the tender) and the vendors for this specific
requirement are not empanelled, then the bidders should be identified
and short-listed by the indentor, who should also determine and certify
that short-listed bidders meet the pre-qualification criteria.
Such tender should contain the Bid Evaluation Criteria (BEC). The
tender should be hosted on website and any bidder who is interested can
download the tender document and submit the bid. Thus all bids
submitted by vendors suggested by the indentor or who had downloaded
the tender and quoted shall be evaluated in accordance with BEC for
qualification and award.
Approval for such limited tendering shall be taken from LMC / Head of
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Project or Sphere.
6.5.4 In case of limited tendering the enquiry shall be issued to all the vendors
who are on the empanelled list of OIL for the tendered item.
6.6 PROCUREMENT ON NOMINATION BASIS:
6.6.1 Award of any contract without following the norms of competitive
bidding, for other than Goods and Services from OEM / Proprietary items
/ Proprietary spares; shall be considered as award on Nomination basis.
All efforts should be made for timely processing of procurement cases so
as to meet the operational requirement and avoid last minute urgency
leading to procurement on nomination basis. A justification for
nomination award due to urgency created solely on account of delay in
processing the normal tender for procurement is not desirable.
6.6.2 Procurement on Nomination Basis is an exception to the normal
procurement procedure. However, to tide over the organisational
exigencies, procurement on nomination basis may be resorted to. In
such situation the user / indentor shall give appropriate justification for
procurement on Nomination basis observing the following guidelines.
- It must be clarified that the procurement on nomination basis is
made only to tide over contingent requirements, meeting quality
standards as would be critical from the organizational perspective,
technical compatibility and if not proceeded with are likely to
jeopardize normal operation and business of the company.
- The user / indenting department shall provide a complete proposal
fully substantiated / justified for selected vendor / contractor and
the proposed methodology for award.
- The proposal shall include inter-alia the cost estimate and its basis.
If the cost estimate is based on the budgetary quotation from
proposed bidder then analysis shall be made by the proposer about
the reasonableness of the same.
- The proposal shall also include detailed scope of work, specification,
deliverables, schedule of activities and payment mechanism.
- The concerned department shall carry out the necessary
assessment of the vendor / contractor / service provider along with
their suitability / credibility for executing the job.
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- In processing a case on nomination basis the technical and
commercial acceptability must be ensured as rejection of the bid is
not desirable in such cases.
6.6.3 The concerned user / indenter shall obtain the approval of competent
authority before resorting to procurement on nomination basis.
6.6.4 After approval by the Competent Authority a PR/SR will be raised for
processing the case for procurement and then forwarded to C&P
Department. The C&P Department shall issue the request for quotation
(RFQ) indicating specification and scope, delivery and completion
schedule and other terms and conditions.
6.6.5 Evaluation and Award : The technical evaluation will be done by the
user department and the commercial evaluation by C&P department.
6.6.6 A tender committee consisting of members from user department, C&P
and Finance shall deliberate and examine the case and put up final
recommendation for award which shall be approved by Competent
Authority as per DOP. The tender committee recommendation should
contain inter alia the following :
(i) Reasons and justification for award on nomination basis
instead of competitive bidding.
(ii) Reasons and justification for recommending a particular
vendor/service provider for nomination contract.
(iii) The price reasonableness of the quoted price.
6.7 PROCUREMENT OF PROPRIETARY ITEMS / SERVICES / OEM:
The procurement of goods / services on proprietary basis should be done
only to meet operational exigencies. The proprietary article certificate
shall be issued by an authority as defined in the DoP.
The proprietary article certificate shall be provided along with PR / SR.
The concerned HOD (or designated officer) shall declare a service,
component, accessories, sub assemblies / assemblies, standby
equipment as OEM item related to original equipment and the same to
be procured from the OEM or authorized dealer of OEM. However it is to
be certified by indentor that no other substitute can be used as
replacement. For these items / services no proprietary article certificate
will be required.
25
The equipment, accessories, sub assemblies / assemblies and any other
item supplied along with main equipment by OEM, which are supplied
by their (OEM) sub vendor; for these items such vendors shall be
considered as OEM equipment manufacturers. However it is to be
certified by indentor that no other substitute can be used as
replacement. For these items also no proprietary article certificate will be
required.
6.7.1 The proprietary requirement shall be justified on technical and
operational ground and a proprietary article certificate shall be provided
as under :
The items / services required are manufactured and provided only by
M/s.___________. No other make / service is acceptable as substitute for
technical / operational reason.
6.7.2 The purchase of proprietary item shall be made from manufacturer or
from dealer if nominated by the manufacturer on exclusive basis.
6.7.3 The tools, equipment and spare parts for the machineries for which no
substitute are available are to be treated as proprietary and no
proprietary certificate is required. However, the indentor has to confirm
that no other substitute / spares can be used. These are to be procured
from original manufacturer (OEM) or from Dealer or Firm nominated by
OEM on exclusive basis.
6.8 PROCUREMENT OF SPARE PARTS:
6.8.1 It is desirable to procure spare parts directly from OEM. Further, in case
of imported supply OIL is entitled to import at zero customs duty once
Oil India Limited is the importer from overseas.
6.8.2 Spare Parts need to be procured directly from OEM only and not from
their dealer / distributor / stockist. In exceptional circumstances, if
OEM advises that the spare should be purchased from their authorised
distributor / dealer / stockist / supply house and as a principle they do
not supply spares directly, then procurement can be done from
authorised distributor / dealer / stockist / supply house.
6.8.3 In case of overseas supplier, if OEM has a joint venture in India or has
opened their own subsidiary then offer from such JV or subsidiary can
also be considered for procurement of spare subject to technical
suitability.
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6.8.4 In case overseas OEM supplier does not agree to directly supply the
spare parts then they may supply on high sea sales basis through their
authorised dealers / distributors / stockists.
6.8.5 Under no circumstances bids from Indian Agent for spares shall be
considered.
6.8.6 In case of overseas OEM, if supply is made by authorised Indian dealers
/ distributors / stockists / JVs / subsidiary of OEM, the bidder shall
certify that in respect of goods covered under the contract the vendor has
paid proper custom and other duties as per Govt. guideline and has
complied with all Govt. regulation. The bidder shall further indemnify
OIL in this respect from any claim in future by any Authority in India or
abroad, from where import is sourced.
6.9 ANNUAL RATE CONTRACT:
6.9.1 The items and spares which are continuously required throughout the
year for operation and maintenance of main equipment by the major
manufacturer, OIL should enter into the rate contract for supply of such
items with these OEMs. Duration of these contracts will not be more
than two years.
6.9.2 Items for which Rate Contract is existing, no tender is processed and
order is placed against PR based on the rate and terms &conditions of
the rate contract.
6.10 PETTY PROCUREMENT:
6.10.1 Spot purchase of stock and non-stock items are made by Materials
Department if the total value of the individual item does not exceed Rs.
25,000.00 or such limit as specified in DOP. The purchases are made
from parties as per the vendor list maintained by the Spot purchase
wing of Materials Department on rotation basis at the rate fixed for the
item by the Materials Department. Wherever the rate is not available,
the supplier has to submit Manufacturer's Price list/quotation for
justification of price.
On the basis of a statement generated from the system (ERP) in regard
to the spot and petty purchases, user departments and Materials
Department may, on quarterly basis, decide whether any of the items in
the statement are to be categorized as stock item for regular
Procurement.
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6.11 PURCHASE AGAINST HAND QUOTATIONS:
Purchases above Rs.25,000.00 up to Rs.100,000.00 shall be made on
hand quotation basis by User Departments themselves by obtaining at
least three hand quotations for all types of procurement. A list of
prominent and reliable local firms will be maintained by all concerned.
Hand quotations will be collected on rotation basis whenever there is
scope for rotation. A certificate will be given by the Officer making such
purchase that hand quotations were obtained on rotation basis. The
names and addresses of the firms from whom quotations are obtained
will be given in the certificate. Where the number of dealers is limited
i.e. less than six (6), rotation system need not apply.
6.12 PURCHASE FROM STATE EMPORIUM/GOVERNMENT DEPARTMENT
/UNDERTAKINGS:
Whenever items are available in State / Centre run Emporium / State
Govt. Or Central Govt. Undertakings, purchases are to be made from
them only and in such cases, the requirement of obtaining three hand
quotations will not be necessary.
6.13 PURCHASE THROUGH BOARD OF OFFICERS:
6.13.1 Purchase by board of Officers (Committee) will be resorted to only in
exceptional circumstances when the materials /services/works are
either required urgently to overcome an exigency or because the
indentor is not able to give firmed up / detailed specifications
(necessitating on the spot decision based on the availability in the
market)so that procurement cannot be made under the normal
purchase procedure, provided further that prior approval of the Head of
the Sphere/Project is obtained and furnished along with the Purchase
Indent, before resorting to purchase through a board of officers.
6.13.2 The Committee purchase shall be constituted by the GM of indenting
department consisting of members from C&P, Finance and Indenting
Department. The Committee shall consist of officers of equivalent level
from each department under whose power the procurement falls as per
DOP.
6.13.3 If for any reason it is not possible to constitute a Purchase Committee
with competent officers in accordance with the DoP, the Committee may
be constituted with an officer of the next below rank. However, the
28
reasons should be recorded in writing for such cases.
6.13.4 For carrying out the purchase, the Committee of officers shall explore
the local markets as first priority, before seeking offers from outside the
city / town. Further, the Committee of officers shall obtain as many
quotations as possible (minimum 3) so as to determine the
reasonableness of rates. In case the supplier(s) do not agree to give the
hand quotations, the same should be recorded by the Committee of
officers in their proceedings.
6.13.5 In case of purchases through a constituted Committee no EMD/Bid
bond is required.
6.13.6 The proceeding of purchase committee should be ratified by the same
authority by whom such committee was constituted.
6.14 EMERGENCY PURCHASE:
6.14.1 The natural calamity, explosion, fire, flood, civil disturbances, war,
cyclones, blow out, and earthquake endangering the plant, property and
lives shall be referred to as emergency. Further operational emergency
which may result in safety hazard / loss of property if not attended /
repaired shall also be considered as emergency.
6.14.2 In case of emergency normal procurement procedure shall not be
applicable. Concerned User Departments shall take all required
decisions in respect of procurement of materials / works / services to
deal with emergency with normal prudence and transparency.
6.14.3 All actions shall be taken in accordance with Delegation of Power (DOP)
for emergency procurement.
6.14.4 Prior Financial sanction is not necessary in case of emergency
procurement.
6.14.5 Detailed justification for resorting to such emergency purchases should
be recorded at the time of processing the proposal for approval of
competent authority as per DOP.
6.14.6 Quantity to be purchased shall be restricted to the minimum essential
and the procurement shall be accounted for immediately by submitting
Pre-receipted indent along with the Inspection Report, Invoice, Delivery
Challan and Purchase Order, to the C&P Department for raising GRN.
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6.14.7 C&P departments in all spheres / projects need to ensure that the items
purchased as emergency procurement are issued and certified by user
that they have been put in utilisation. Delay in consumption of such
items, if any, are to be reported by the concerned Department to
concerned HOD / Project Head, with reasons.
7.0 SYSTEM OF TENDERING
7.1 SINGLE BID SYSTEM (COMPOSITE – TECHNICAL CUM
COMMERCIAL) :
7.1.1 This system of bidding requires that technical and price bids are
obtained in single envelope and opened for processing. The system
should be adopted in cases where specification, terms and conditions,
are firmed up and the bidder is required to strictly comply to the tender
conditions. Preferably this method should be adopted for standard
items.
7.1.2 The following limit shall be applicable for procurement through
composite bid system :
(i) Procurement of Materials up to Rs.50 Lakh
(ii) Procurement of Work / Services upto Rs.1. Crore
The above are only guidelines, depending upon the requirement the C&P
Department can select any other value limit which suits the particular
procurement. In case higher value limit is selected for composite bid
system, it should be substantiated with proper justification.
7.1.3 Procurement of OEM / Proprietary / Spare part items and award on
Nomination basis may also be through single bid system.
7.2 SINGLE STAGE TWO BID SYSTEM:
7.2.1 Two Bid System generally is used:
(i) In case of procurement of capital items / works / services of complex
and sophisticated nature where it is essential to examine the technical
offer for acceptability and compliance to the tender conditions.
(ii) In procurement of the items where service conditions and other
parameters are provided by OIL and equipment are designed and
manufactured by the bidder which may require examination of the bid
for compliance to the tender conditions.
30
(iii) Service / work contract where it is necessary to raise technical and
commercial query to the bidder for examination of the bid.
7.2.2 As a general guideline the procurement having value more than
specified at 7.1.2 shall be processed as per single stage two bid system.
However, this is just a guideline, depending upon the requirement any
other value limit which suits the particular procurement may be opted.
7.2.3 Under Single Stage Two Bid System the bid should comprise of “Techno
Commercial – Unpriced Bid” – Part-I and “Priced Bid” – Part-II
separately, sealed in separate envelopes. The first inner sealed cover
will contain Techno Commercial – Unpriced bid having all details but
with price column blanked out. Part-I shall also contain EMD / Bid
Bond. This cover will clearly be super scribed with “Techno Commercial
– Unpriced Bid” along with party’s name, tender number, Bid closing
date and brief item description. The second inner sealed cover will
contain only the price schedule duly filled in and signed and will be
clearly super scribed with “Priced Bid” along with other details as
mentioned above. These two covers shall be put into an outer cover and
sealed. The outer cover should bear the Tender number and Bid closing
/ opening date along with the address of the office where tenders are to
be submitted.
In case of e-tender techno-commercial bid (without price bid) and price
Bid have to be uploaded in separately designated places of the e-portal
as per the requirement (design) of the e-portal.
7.2.4 In case of electronic bidding, bidders shall upload the copy of bid bond
/ security deposit while submitting the bid. However, original bid bond
must be received on or before the due date and time of bid submission
at the designated C&P department office.
7.2.5 The techno-commercial unpriced bids will be opened and scrutinized.
The user department shall make the technical scrutiny and submit the
technical scrutiny report which shall take care of compliance to BEC
(technical and experience) and technical suitability / compliance as per
specification provided in the tender document.
The commercial evaluation with reference to commercial terms and
conditions of the tender document shall be done by C&P department
which shall submit the commercial scrutiny report.
The bids which are found acceptable as per Technical Scrutiny Report
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and Commercial Scrutiny Report shall be considered acceptable for
price bid opening.
7.2.6 After the short-listing of techno-commercially acceptable bidders and
approval by competent authority for price bid opening, all such bidders
will be notified of the date of opening of priced bids, allowing period of
not exceeding 7 working days, depending upon the urgency of
requirement and location of bidders, so as to enable such bidders to
participate in tender opening if they so like.
7.3 TWO STAGE TWO BID SYSTEM:
7.3.1 This system is followed for the procurement where:
It is not possible to formulate detailed specification and requirement,
without receiving inputs regarding its technical aspects from the
bidders.
The bidder is expected to carry out a detailed survey or examination and
undertake a comprehensive assessment of risk, cost and obligation
associated with the particular procurement.
7.3.2 In two stage bidding following steps may be followed:
(i) In the first stage bidding process, OIL shall invite bid containing
technical aspects and contractual terms and conditions of the
proposed procurement without price.
(ii) The tender committee shall examine the technical bid as per the bid
condition. If required the committee may hold discussion with
bidders giving equal opportunity to all bidders to participate in
discussion.
(iii) Pursuant to examination of bid and discussion with the bidders the
committee may, if considered essential, revise the relevant terms and
conditions / specification. However, at this stage the fundamental
nature of the procurement should not be changed / modified.
(iv) In the second stage of bidding process the prospective bidders shall
be asked to submit price bid only.
(v) Any bidder who has been invited to submit the bid at second stage
and is not in a position to supply / execute the job due to
modification in the specification or terms and condition may
32
withdraw from the bidding process without forfeiting any EMD
submitted by him. However, the bidder shall be required to give
adequate justification for such withdrawal.
8.0 BID INVITATION AND BID RECEIPT
8.1 INVITATION OF TENDER:
8.1.1 Coordination and clubbing of demands for purpose of inviting tenders:
When dealing with indents, due attention should be paid to the
combination and clubbing of demands which will result in economy in
purchase. Demands for materials received simultaneously from
different indentors should be combined as far as possible while inviting
tenders. Due regard should, however, be given to delivery instructions
given by the indentors. Demands which cannot be suitably combined
with others for this or any other reasons should be dealt with
separately.
8.1.2 Enquiry Register (Not applicable for e-procurement and open tender)
i. An enquiry register for all the physical tenders shall be
maintained, either in system (SAP etc.) or physical record.
ii. In case of limited enquiries the name of the firms to whom the
enquiries will be addressed will be entered in that register. This
will be signed by the concerned officer issuing the enquiry.
8.1.3 Tender intimation to be sent to prospective bidders (in case of open
tender)
As a proactive action tender intimations shall be sent to prospective
bidders as soon as the tender is published. This shall enable the
bidders to refer to the advertisement and submit their bid.
8.2 TIME TO BE ALLOWED TO TENDERERS TO QUOTE:
The bidder should be given reasonable time period for studying the
tender document and preparation of bid. Accordingly, depending upon
the nature of procurement like supply (indigenous/imported), ICB
tenders, LSTK, the different time slab should be given for submission of
bid.
33
The following time period shall be allowed to bidder for submitting of
bid :
Indigenous:-
Limited Tenders : minimum 25 days (in case of physical
tender it shall be maximum 30 days)
Open Tenders : minimum30 days
Others:-
Limited ICB Tenders : minimum 30 days
EPC/LSTK/Open ICB Tenders : minimum 45 days
However, a lesser bidding time may be given, keeping in view the
urgency of the requirement, with due approval of Head of Department,
provided such time is adequately reasonable for bidders’ participation.
In case of proprietary procurement, procurement on nomination and
spares, a shorter bidding time can be given. However, the same should
be adequate for the bidder to submit bid. Option of sending email
enquiries for such tenders may be exercised.
8.2.1 The time allowed for bidding is to be reckoned from the date of
publication of NIT in newspaper.
8.2.2 If the due date of the submission and opening happens to be an
unscheduled holiday / closure of OIL’s office, the due date of
submission and opening shall be accordingly extended up to next
working day.
8.3 VALIDITY PERIOD:
8.3.1 The bidders will be asked to keep their offers valid as under :
Composite Bid System : 60 - 90 days
Two Bid System : 90 - 120 days
The tender should be finalized within the original bid validity. The
validity extension should be avoided; only in exceptional circumstances
after recording the reasons in writing the validity extension may be
sought. In response to a request for validity extension, a bidder may
extend the validity on the same terms, conditions and prices. A bidder
has option not to extend the bid validity, if he so desires, without
forfeiting the bid security.
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8.4 INVITATION TO BID:
8.4.1 In regard to Invitation to bid, following points are to be kept in view:-
a. The Invitation to bid will clearly indicate the place, date and time by
which tenders will be received and the place, date and the time at
which these will be opened. It will also provide a brief description of
the tender along with details of tender number, tender fee.
b. The date and city of the pre-bid conference (if any envisaged) also
must be clearly specified in the Invitation to Bid. The last date of
receipt of queries from prospective bidders for pre-bid conference
will also be mentioned.
c. Invitation should include an instruction that the bid sent by the
bidder must reach the place of submission of bid well before the
closing date and time.
In case of e-tendering bidders are to submit the documents
electronically through OIL’s e-tender portal only. Where the bidders
are required to submit their bid electronically, bids submitted
manually shall be rejected. Bidders should upload copies of
EMD/Bid Bond/Bank Guarantee etc. along with technical part and
submit the original EMD on or before the bid closing date and time
at the designated C&P office in the tender.
d. All bids received by the notified closing date and time either through
post or through the tender box, will be entered in tender opening
register (Not applicable in case of e-tenders).
e. Invitation to bid may be transmitted by fax or e-mail also, wherever
required.
f. Invitation to bid will indicate the date and time of the
commencement of the sale of the tender.
g. Invitation to bid will mention that bidders can visit OIL's tender
website for further details on the tenders.
h. In case of Invitation to bid pertaining to e-procurement tender it
shall be mentioned that all the bidders have access to “Online help
document” which is available on login. This help document should
be used by them for participating in e-procurement tenders.
35
8.4.2 The Tender Inviting Authority (TIA) shall forward the Invitation to bid
both in soft and hard copy to the concerned department. The Invitation
to Bid must contain the official e-mail address of the TIA.
8.4.3 The Invitation to bid shall be signed by the dealing officer of the Tender
Inviting Authority (TIA) to ensure that the Invitation to Bid is in order
and to avoid any corrections after its appearance on the web.
8.4.4 The complete set of bid documents shall be uploaded on OIL’s website
well in advance of the specified date for commencement of tender sale
specified in NIT. The TIA will be responsible for ensuring the
correctness of the content of the Invitation to Bid uploaded on the site.
8.4.5 Bidders will have to download the tender document before the due date
of submission and use the same for participating in the tender. The
bidders downloading the tender document from the website should
ensure to submit tender fee along with the bids to the tender inviting
Sphere / Project before the deadline specified for submission of bids.
Bidders, who intend to claim exemption from payment of tender fee,
must furnish the documentary evidence along with bids.
Applicable for e-tenders
Bidders shall be able to submit the Bid only after payment of the
Tender Fee. The payment of the Tender Fee can be made through OIL’s
electronic payment gateway.
Bidders who intend to claim exemption from payment of the Tender
Fee, should submit their request to the Tender Inviting Officer (contact
e-mail address provided in the RFx parameters of the subject e-tender)
with documentary evidence atleast 7 (seven) days prior to the last date
of submission of bids, so that the exemption from payment of the
Tender Fee is provided in the e-portal to that particular Bidder.
8.4.6 Number of copies of offers to be called from bidders(Not applicable for e-
procurement)
8.4.7 Number of copies of offers / bids to be called from bidders will be as
under:
a. Where in-house evaluation is involved- Copies in duplicate
b. Where bid evaluation is done by outside agency- Five Copies
36
8.5 VARIATION IN QUANTITY AFTER INVITATION OF TENDER:
In case of supply tenders, the tender can have a provision for variation
of quantity at the time of placement of order up to +/- 20%.The bids,
however, shall be evaluated based on the tendered quantity to decide
the interse ranking of the bidder.
8.6 MODIFICATION TO THE SCOPE OF WORK
Any change in scope of work shall require the approval of competent
authority, whoever approved the PR. Any specific and essential
modifications of the scope of the work, subsequent to invitation of bids,
may be done only with the approval of Competent Authority, whoever
approved the PR. The addendum / amendment shall be notified in
writing to all prospective bidders who have received/purchased the Bid
Documents. In order to provide reasonable time to the prospective
bidders, for taking into account such amendment/ addendum in
preparing their bids, reasonable time as may be essential shall be
allowed to the bidders for submission of bids after issuance of such
amendment/addendum. This amendment/addendum shall also be
hosted on OIL’s website.
The following disclaimer to be included in all NITs :
Revision, clarification, addendum, corrigendum, time extension etc. to
the tender will be hosted on OIL website only. No separate notification
shall be issued in the press. Prospective bidders are requested to visit
website regularly to keep themselves updated.
8.7 SALE OF TENDER DOCUMENTS TO FIRMS WITH WHOM BUSINESS
HAS BEEN BANNED / SUSPENDED:
It may be specified in INVITATION TO BID that firm(s) to whom no
further business is to be given or dealings with whom have been
banned / suspended are not eligible to participate in the tender and
any bid received from such firm(s) shall not be considered and will be
returned un-opened to the concerned firm(s) within a period of seven
days from the due date of opening of tenders.
In case of physical sale of the tender documents, if inadvertently a
tender document is sold to a bidder falling in above category and such
bidder submits the bid, his bid shall not be considered and will be
returned to the bidder.
37
8.8 TENDER FEE:
8.8.1 The tender fee will be acceptable in the form of crossed "Payee Account
only "Bank Draft/Bankers’ Cheque drawn by Bank and valid for 90
days from the date of issue of the same or in the form of Indian Postal
Orders payable to the OIL. In case of e-tender, tender fee shall be
payable through online payment gateway also.
8.8.2 The IPOs/Bank Drafts/Banker’s Cheques will be deposited and
accounted for at the designated station provided in the tender
document.
8.8.3 The following tender fees will be charged from the bidders:
Sl.
No.
Estimated Value of
tender
Procurement
of goods /
services /
works
through
National
Competitive
bidding
(NCB)
Procurement of goods /
services / works through
International
competitive
Bidding (ICB)
Tender Fee
for
domestic
bidders
(Rs.)
Tender fee
for foreign
bidders
(US$)
i) For tender exceeding
Rs.10.00 lakhs but not
exceedingRs.1.00crore
1000.00
6000.00
100.00
ii) For tender exceeding Rs.
1.00 crore but not
exceedingRs.2.00crores
1000.00
12000.00
200.00
iii) For tender exceeding Rs.
2.00 crores but not
exceedingRs.10.00crores
1000.00
30000.00
500.00
iv) For tender exceeding Rs.
10.00crores
2000.00 60000.00 1000.00
38
The vendor will have to pay the requisite tender fees till the tender sale
end date and time. In case of MSE/PSUs/ Govt. Bodies / eligible
institutions etc., they shall apply to C&P department for waiver of tender
fees before 07 days of bid closing date.
8.8.4 Purchase of bidding documents by agents
In respect of ICB tenders, the agents in India duly authorized by their
foreign principals will be allowed to purchase tender documents on
behalf of their foreign principals.
8.8.5 Offers from Indian agent and alike of Foreign principal
Offers made by agents/consultants/retainers/representative/ associate
of foreign principals will be rejected outrightly.
8.8.6 Refund of tender fee
The tender fee shall be refunded to the concerned bidder in the event, a
particular tender is cancelled. In case of e-procurement tenders,
wherever tender fee is required to be refunded, refund of the same shall
be made to the bank account No. /card used for making payment
towards purchase of tender documents.
8.8.7 Exemption from payment of tender fee
Micro and Small Enterprises (MSEs) registered with District Industry
Centres or Khadi and Village Industries Commission or Khadi and
Village Industries Board or Coir Board or National Small Industries
Corporation or Directorate of Handicrafts and Handloom or any other
body specified by Ministry of MSME will be exempted from payment of
tender fee irrespective of the monetary limit mentioned in their
registration certificate provided they furnish evidence that they are
registered for the items they intend to quote against OIL tenders. Such
bidders should provide documentary evidence along with the bid
submitted in case of physical tenders. Their bid will be considered
provided the correct and valid documentary evidence is provided. The
Central Govt. Departments and Central Public Sector Undertakings will
also be exempted from the payment of tender fee. Parties registered
with DGS&D, having valid certificates will be exempted from payment
of tender fee.
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8.8.8 Sale of tender document (in case of physical sale)
A register for sale of tender document will be maintained by concerned
section. Every enquiry shall be allotted a separate page in the register.
Format of the tender sale register is given below:-
TENDER SALE REGISTER
1. Tender No. :
2. Tender For :
3. Date and Time of Opening of Tender :
4. Tender uploaded in OIL’s website : Yes/No
Sl. No.
Name
of
Bidder
Mode of
Payment
Tender fee
value
Name & Signature
of authorized
representative
Signature of
OIL’s
authorized
1 2 3 4 6 7 8.9 PRE-BID-CONFERENCE (WHEREVER APPLICABLE):
8.9.1 In case of complex jobs/LSTK/works, services and equipment of
specialized nature, it is preferred to have pre-bid conference with the
prospective bidders so as to have clarity with respect of specification,
scope of work, services covered under the tender. This exercise
minimizes the instances of raising technical and commercial queries to
the bidders after receipt of the bid. The unit in-charge and Head of the
Project is competent to decide considering nature of item, work,
complex tenders regarding holding the pre-bid conference.
8.9.2 The tender document should clearly indicate the city / location & date
for the pre-bid conference. The bidder should be given reasonable time
for bidding after the pre-bid conference. Accordingly, the pre-bid
conference should be scheduled in such a way as to allow the bidders
to bidders get 2/3 of the total bidding time for submission of their bids
proposal after the pre-bid conference.
8.9.3 Bidder should be advised to submit their queries in relation to the
tender document atleast 5 (five) working days before the scheduled date
of pre-bid conference. This shall enable OIL to analyze their query and
to make suitable response during pre-bid conference. However, bidders
can also raise the query during the pre-bid conference.
40
8.9.4 The pre-bid conference shall be organized by C&P department and shall
be attended by the indentor. The tender committee members or their
authorized representatives should necessarily attend the pre-bid
conference.
8.9.5 The bidders who have paid tender fee will only be authorized to attend
pre-bid conference. The bidder who does not attend the pre-bid
conference is also free to submit the bid.
8.9.6 The record note of the pre-bid conference shall be prepared by official
from C&P department which shall be signed by indentor as well.
8.9.7 As a result of such pre-bid conference, if any corrigendum is to be
issued to the tender document, the same shall require the approval of
competent authority on recommendation of tender committee. The
cases which are falling within the power of Director and above, the
same shall be approved by the LMC / Head of Project /Sphere. Such
clarification/corrigendum to the tender document shall be issued to all
prospective bidders who have purchased the tender document and
shall also be posted on the website. Also, as a result of pre-bid
conference, if the substance of the tender like scope of
work/specification/delivery period/mobilization period/completion
period, changes then an amendment to the NIT shall be published in
OIL website. Amended NIT should also be published in the Amendment
folder in case of e-tender. Further suitable time extension shall also be
given in such amendment to NIT for due date for bid submission, if
considered necessary.
9.0 CANCELLATION / RE-INVITATION OF TENDERS
9.1 CANCELLATION OF TENDERS & RE-INVITATION OF BIDS:
Cancellation of tender for any reason and re-invitation whether on
limited or open basis shall require an approval of competent authority as
per DoP.
10.0 RECEIPT OF TENDERS
10.1 Quotations are to be submitted by the bidders in triplicate or duplicate
as mentioned in the tender. Sealed envelopes; cover should bear Tender
No. and Bid Closing date and time. Name of the bidder should also be
mentioned on the envelope. In case the bidder is the authorised dealer
of the OEM, then the name of the OEM should also be mentioned on the
41
envelope.
10.2 The tenders will be received as under:
i. Directly put in Tender Box by bidders.
ii. Received by ordinary/registered post/courier/Speed post.
iii. Handed over personally to Despatch section of C&P department by
the Bidder(s) if not possible for them to put in Tender Box due to
volume of the documents.
10.3 Bids hand carried by the bidder's representatives shall be directly put
by them in the Tender Box.
10.4 For the bids received through courier or post, the Despatch Section of
C&P Department will maintain a separate register wherein details like
tender no., receipt date etc. would be recorded by them. After recording
the same in the register, the tenders are put inside the Indigenous or
Foreign Tender Boxes as the case may be.
10.5 Bids and samples hand carried by the bidders or received though
Post/Courier, which cannot be put in the tender boxes due to its
voluminous sizes will be received by Despatch section of C&P
department from the bidders directly. All such bids and samples
received in Despatch section will be forwarded through register to the
concerned C&P Section who will keep record in a separate register.
The register and the bids & samples so received will be kept in the safe
condition under lock & key. On the bid opening date, the tenders
falling due on that day are taken out after recording the same in the
register and brought to the tender opening room for opening of the
same.
10.6 The above provision shall not be applicable in case of e-tendering.
However, in case of e-tendering, the bid shall be received only in
electronic form through e-tender portal of OIL. The under mentioned
document, in addition to the uploading of document on portal shall
also be submitted in original in physical form:
i) EMD/Bid bond
ii) Power of Attorney
10.7 In case of quotations received after the bid closing date/time, the same
shall be put in the respective Tender Box after recording date and time
of receipt on the cover of the quotation. At the time of subsequent
opening of the Tender Box, all such late tenders will be taken out and
stamped as under:
42
"LATE OFFER Found in Tender Box on .........."
11.0 TENDER BOX AND ITS CUSTODY
11.1 The Tender Box shall have suitable provision at the top for dropping
envelopes. Two tender boxes should be there - One for International
Competitive Bidding (ICB)/Limited International Competitive Bidding
(LICB)/Other Foreign tenders and the other box will be for all Domestic
tenders.
11.2 The Tender Box shall be kept at a secured and safe place in the office
accessible to the public.
11.3 The Tender Box shall always be kept under lock and key under double
lock system, one key is to be kept in the custody of a C&P officer and
the other key in the custody of an Accounts Officer. The duplicate keys
are to be kept with the representatives of HEAD-C&P and Head-
Accounts.
12.0 NOMINATION OF TENDER RECEIVING/OPENING OFFICER(S)
An officer of C&P not below "Grade B" level will be nominated for
receipt of tenders each month. In addition, one Officer not below
"Grade B" level each from C&P and Finance & Accounts Department
will also be nominated for opening of tenders. Arrangements will also
be made for nominating Officers not below "Grade B" level as Leave
Reserve for above purpose.
13.0 ACCOUNTING OF TENDERS
13.1 The tender box shall be opened exactly at the time of bid closing on the
specified date, thus there should not be time lag in opening the tender
box and that of the closing time. On the day of Tender opening, after
the closing hours of the tender, the tender box shall be opened by the
Officer from C&P Department in presence of the Officer from the
Finance & Accounts Department. All the tenders are taken out from the
tender box and kept in a place for sorting. The tenders which are to be
opened on that specific day are kept while the tenders whose bid
closing dates are at a later date are then again put into the tender box.
The related tenders are then brought to the tender opening room of the
C&P Department. Late offers, if any, found in the Tender Box shall be
taken out and kept separately after due recording on the envelope. All
such late tenders shall be kept with the C&P department.
13.2 The voluminous tenders and samples which are kept separately in the
43
safe custody of the respective C&P section shall also be brought to the
tender opening room for opening after recording the same in the
registrar maintained in the section.
14.0 WITHDRAWAL OF BIDS
The bidder, after submission of bid may withdraw their bid by written
request prior to bid closing date& time (only for physical tenders). Such
request is to be made to the dealing officer of OIL mentioned in the
tender document. In case the due date of submission is extended even
after receipt of some bids due to some special circumstances, the
bidder who has already submitted to bid has right either to withdraw or
revise his bids, without forfeiting the EMD.
15.0 OPENING OF TENDERS
15.1 Tenders are opened on the day and time as specified in the NIT in the
presence of a representative of the Accounts Department not below the
rank of an Accounts Officer and a representative of the Materials
Department not below the rank of a Purchase Officer. Bids for which an
acceptable request of withdrawal has been received from the bidder
shall not be opened.
15.2 Tenders shall be opened on next working day if the opening date
specified in NIT turns out to be an unscheduled holiday/ Bandh.
Accordingly, bid closing date / time will get extended upto the next
working day.
15.3 The bidders or their authorised representatives may be present at the
time of tender opening. No other person than officials of OIL or
authorised representatives of bidders shall be present at the time of
tender opening. If a bidder desires his authorised representative to be
present at the time of opening, he is required to submit a letter of
authority along with his tender and a copy of the said letter of authority
has to be presented by the bidder's representative to the officers
opening the tenders. Representatives of bidders whose offers have not
been received on the date of tender opening shall not be allowed to
attend the tender opening.
15.4 While opening the tenders, the names and addresses of all the bidders
are recorded in a Statement. The quotations are serially numbered. For
example, if four quotations are received, the first quotation opened will
be numbered 1/4, the second 2/4 and so on. If any regret letter is
received from any bidder, it is also recorded in the Statement. If
44
authorized representatives of the bidders are present at the time of bid
opening, their names and names of firms they represent are recorded in
another Statement. Signatures of the representatives are also obtained
on this Statement against their respective names. Each page of both
the above Statements are signed by OIL's Tender Opening officers
opening the Tenders.
15.5 Following points are to be noted –
i) Corrections/ Cutting/ overwriting/ additions are to be initialled by
tender opening officer.
ii) Number of corrections on each page of the bid (s) will also be
recorded by tender opening officers.
iii) Numbering has to be done on each page of the price bid (including
attachments but excluding printed general catalogues and booklets)
with initials of tender opening officers. For general catalogues and
booklets, first and last page to be initialled by Tender opening
officers. Total number of pages in the Price Bid should be indicated
on top of the Price bid. This is applicable only for original bid.
iv) Any ambiguities in rates quoted by tenderers, in words or figures
must be clearly indicated.
v) Where the Bidders have omitted to quote the rates in figures or in
words, the officer opening the tender should record the omissions.
Nil correction/omission/insertion are also required to be specified
on each page of the price bids.
vi) Discount of any type, if indicated separately shall be initialled by
tender opening officers.
vii) The samples received along with the tenders shall also be signed by
both the officers. If it is not possible to sign on the samples then
those samples should be sealed with the label mentioning the name
of the firm. Name of the firm should invariably be recorded on the
sample, if not given already. The names of the parties who have
submitted sample should also be recorded in Bid Opening
statement.
viii) The cases where Bid Security is required as per tender condition,
names of Bidders, who have submitted/not submitted Bid Security,
shall be recorded in Bid Opening statement.
ix) While reading out the rates in the public opening, only the total
prices or group-wise prices, if sought as per tender, should be read
out in addition to delivery schedule and major terms and conditions.
15.6 E-MAIL / FAX / TELEPHONICOFFERS:
E-Mail / Fax/Telephonic offers shall not be accepted unless specifically
asked for in writing. Email/FAX offers shall be accepted for proprietary
45
tenders as per existing practice.
15.7 UNSOLICITED AND/OR LATE BIDS:
Tender documents are not transferable. Unsolicited bids shall be ignored
straightway. Such offers shall be returned unopened to the bidder
within 1 (one) month of finalization of tender against request by the
concerned bidders and proper record of return will be maintained in the
Tender File.
16.0 EXTENSION OF DUE DATE FOR SUBMISSION OF BID
16.1 Extension of due date for bid submission shall be avoided. However,
where the corrigendum/modification to the tender document is issued,
suitable time extension may be given if required. In other circumstances,
a valid reason should be recorded and put up to the Head of the
department of C&P for approval and such extension shall be given.
16.2 There shall be no extension of due date after bid closing even if there is
insufficient participation (say 1 to 2 bids received). Even if there is only
1 bid that must be opened and evaluated and processed further without
resorting to due date extension.
16.3 However, in special circumstances like selection of consultant or
procurement of sophisticated packages where technology is limited, with
due deliberation and on recommendation, the competent authority may
approve minimum required extension. At this stage the bidders who
have already submitted the bid have option either to
withdraw/revise/resubmit the bid without the forfeiture of bid security.
17.0 EARNEST MONEY DEPOSIT/BID SECURITY/BID BOND
17.1 EMD/Bid security/Bid Bond is obtained from the bidders as an
instrument so that the bidder does not withdraw/modify the bids within
the validity period thereby causing inconvenience for OIL. The amount of
bid security shall be determined in accordance with the cost estimate of
the items/works/services procured under the subject tender.
17.2 EXEMPTION FROM SUBMISSION OF BID SECURITY:
No earnest money deposit / bid security will be necessary for
procurement up to Rs.10.00 lakhs, procurement from Central Govt.
department, Public Sector Undertaking, proprietary item, procurement
from OEM/on nomination basis. Further, no bid security shall be
required for procurement from MSEs registered with District Industry
46
Centers or Khadi and Village Industries Commission or Khadi and
Village Industries Board or Coir Board or National Small Industries
Corporation or Directorate of Handicrafts and Handloom or any other
body specified by Ministry of MSME.
17.3 AMOUNT OF BID SECURITY:
Amount of Expenditure Sanction Amount of EMD /Bid Security
<= Rs.10Lakh Nil
>Rs.10Lakh, <= Rs. 5Crore @2% of total estimated cost put to
tender >Rs. 5 Crore, <= Rs. 15 Crore Rs. 10 Lakhs + 1.5% on
amount exceeding Rs.5 Crore
>Rs.15 Crore, <= Rs. 25 Crore Rs. 25 Lakhs + 1% on amount
Exceeding Rs.15 Crore
.>Rs. 25 Crore Rs. 35 Lakhs + 0.5% on
amount exceeding Rs. 25 Crore
While working out the EMD the closing B.C. selling market rates of
exchange declared by the State Bank of India as applicable on the date
of approval of BEC by competent authority will be taken in to account
for conversion of Indian Rupees to foreign currency. In case of stock
items or the cases where standard BEC is being used, the exchange
rate of date of PR approval shall be taken.
However, the maximum limit of EMD/Bid Security for a tender shall be
US$ one million for foreign bidders and Rs.5 Crores for Indian bidders.
*Bid Security in case of listed/unlisted labour contracts shall be @1%
of the annualized estimate contract value.
17.4 RETURN OF EMD/BID SECURITY:
17.4.1 The bid security/EMD submitted by the technically unacceptable
bidders will be returned within 10 days of Price bid opening. The bid
security/EMD of the unsuccessful bidder shall be returned within 30
days of finalization of the contract / issuance of award. The bid
security/EMD of the successful bidder shall be returned only after
receipt of Performance Security.
17.4.2 During the process of evaluation, if OIL seeks validity extension, bidder
47
has option either to extend the bid validity on the terms and conditions
and corresponding extension of bid bond. In case the bidder opts for
not extending the validity, his EMD cannot be forfeited and the same
shall be returned within 10 days after the expiry of his bid.
17.5 MODE OF SUBMISSION OF BID SECURITY:
All the bids must be accompanied by Bid Security for the amount as
mentioned in the NIT or an equivalent amount in freely convertible
currency and shall be in the OIL's prescribed format as Bank
Guarantee (BG) enclosed with the NIT or a Bank Draft/Bankers’ cheque
in favour of OIL or an irrevocable Letter of Credit (L/C) from any of the
following Banks –
a) Any schedule Indian Bank or Any Branch of an International bank
situated in India and registered with Reserve Bank of India as
scheduled foreign bank in case of domestic bidder, or
b) In case of foreign bidder, the bank guarantee can be accepted from
any scheduled bank in India or from International bank who has
its branch in India registered with Reserve Bank of India, or
c) Any foreign Bank which is not a Scheduled Bank in India, provided
the Bank Guarantee issued by such Bank is counter-guaranteed
by any Branch situated in India of any Scheduled Bank
incorporated in India or
Bid security shall also be acceptable through online payment modes.
17.6 EXAMINATION / VERIFICATION OF BID SECURITY:
All bid security received against a tender, after comparing the tender
no., amount of the bid security, validity of bid security and name of the
party on whose behalf it has been issued, the C&P department shall
send a copy of the same to Finance. The Finance department will check
the following:
i) Whether the language of the BG is verbatim as per the format
provided by OIL.
ii) In case of any discrepancy with regard to the value of non-judicial
stamp and change / modification in the language by bank, the
bank guarantee shall be examined by Legal law department for its
acceptance.
48
In order to know the authenticity of the bid security submitted by the bidder, the Finance department shall take up the matter with the issuing bank for verification of the BG.
17.7 INVOKING/FORFEITURE OF BID SECURITY/EMD:
17.7.1 The bid security can be forfeited in the following condition:
i) The bidder withdraws the bid within its original/extended validity.
ii) The bidder modifies/revise their bid sumoto.
iii) Bidder does not accept the order/contract.
iv) Bidder does not furnish Performance Security Deposit within the
stipulated time as per tender/order/contract.
v) If it is established that the bidder has submitted fraudulent
documents or has indulged into corrupt and fraudulent practice, the
bid security shall be forfeited after due process in addition to other
action against the bidder as specified elsewhere in “Guidelines for
Banning business Dealings”.
17.7.2 In case of Sl. No. i) to iv), approval of Head-Materials / Head-Contracts
is required. In case of Sl. No. v) approval of competent authority is
required as specified in the “Guidelines for Banning business Dealings”.
17.7.3 SUBMISSION OF EMD/BID SECURITY IN CASE OF E-TENDERING:
In case of electronic bidding, bidders shall upload the copy of bid bond
/ security deposit while submitting the bid. However, original bid bond
must be received on or before the due date and time of bid submission
at the designated C&P department office.
18.0 TENDER COMMITTEE
18.1 FORMATION OF TENDER COMMITTEE:
18.1.1 No Tender Committee is required for cases valuing upturns. 10.00
Lakhs. Further, tender committee will not be necessary for
procurement when orders are placed against DGS&D and OIL’s rate
contract.
In such cases the bid will be examined technically and commercially by
user department and C&P Department respectively. Thereafter, C&P
Department will prepare a proposal and route the same through F&A
Department for approval by Competent Authority as per DoP.
49
All cases valuing above Rs.10.00 Lakhs for procurement of goods /
services / works and rate contracts, shall be processed through tender
committee.
18.1.2 The Tender Committee will consist of 3(three) members one each from
C&P, Indenter / User and Finance Department. Wherever there is
technical complexity or user and indenter are different the member
from User Department can be co-opted for advice to the indentor.
However, the total number of tender committee will not exceed 3(three).
18.2 LEVEL OF TENDER COMMITTEE:
The member of the tender committee from three departments as
mentioned above shall be one level below the Competent Approving
Authority. However, in the event no officer of requisite level is posted
then officer of next lower level available from that department will be
included in the tender committee.
i) In case officer to approve the proposal as per DOP is not available at
the station the officer available at higher level shall approve the
recommendation. In case Head of the Sphere / Project being the
approving authority and not available at station, the officer in charge
shall approve such proposal. However, the level of tender committee
shall not change and continue corresponding to competent authority
in accordance with DOP.
ii) There may be cases that regular member of the tender committee is
not available due to valid reasons, in such cases the officer next lower
level available in that department shall be included in the tender
committee so as to avoid delays in holding the committee meeting.
iii) The cases where competent authority to approve the proposal is
Director / CBC / Board, tender committee shall be held at the level of
senior most officer available in the respective departments.
iv) The level of tender committee will be decided considering the
estimated value provided in the PR for the tender based on the
competent authority corresponding to the estimate. During the
course of evaluation, on the basis of number of the techno-
commercially acceptable bids and the lowest evaluated bid for award,
the level of the tender committee may be changed according to the
corresponding approving authority.
18.3 CONVENING OF TENDER COMMITTEE:
18.3.1 The C&P Department will convene the tender committee meeting.
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18.3.2 Tender committee Meetings will happen virtually over video conference
whenever possible in order to avoid hassle of convening all members in
one location. Also, all briefs and documents will be made available
online so that approvals/recommendations of Tender Committee can be
done online.
18.3.3 Tender Committee meetings will be convened in the office of
department responsible for processing of tenders, i.e. C&P.
19.0 TIME SCHEDULE FOR VARIOUS ACTIVITIES FOR EVALUATION AND
AWARD
The time schedule for evaluation and processing of cases after receipt
of bids till award for different activities is mentioned hereunder:
19.1 SINGLE ENVELOPE COMPOSITE BID (CONSISTING OF TECHNICAL
AS WELL AS PRICE):
Sl.
No. Activity
Maximum Period
Allowed
1 Opening of Bids 0
2 Scrutiny of bids and issuance of
Technical / Commercial queries (if
any)
10 days
3 Vendor response to Technical /
Commercial queries
10 days
4 Evaluation of response to Technical
/ Commercial queries and
Finalization of Technical /
Commercial Evaluation /
Comparative Statement
15 days
5 Preparation of Comparative
statement, examination by finance
department and tender committee
recommendation for award
15 days
6 Approval of Competent Authority
and award
2 days
Total Period allowed (maximum) 52 days
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19.2 SINGLE STAGE TWO BID SYSTEM:
Sl.
No. Activity
Maximum Period
Allowed
1 Opening of Un-priced Bids 0
2 Scrutiny of bids and issuance of
Technical / Commercial queries (if any)
10 days
3 Vendor response to Technical /
Commercial queries
10 days
4 Evaluation of response to Technical /
Commercial queries and Finalization of
Technical / Commercial Evaluation
15 days
5 Preparation and Finalization of
Committee recommendation for price bid
opening
7 days
6 Approval of Competent Authority 3 days
7 Price Bid opening 7 days
8 Preparation of Comparative Statement 5 days
9 Vetting of Comparative Statement by
F&A Department
3 days
10 Preparation and Finalization of Tender
Committee Recommendation for award
7 days
11 Approval of Competent Authority
and award
(Cases which requires approval by
Director)
[Cases which requires CBC / Board
approval]
3 days
(5 days)
[10 days]
Total Period allowed (maximum) 70 days
(75 days)
[80 days]
Note: i) For Complex Cases/ LSTK / Cases Where PMC is involved /
Cases where Reverse Auction is involved additional 10 days may
be considered, if necessary.
ii) In case a particular tender is not finalized within the above
targeted period for valid reason, it should not be treated as
deviation to procedure. However, periodic exception report shall
be put up to Head of Sphere / Project for deliberation and
analysis to find out the reason for such delay and remedial action
for future cases.
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20.0 EVALUATION OF BIDS
The responsiveness of the bids shall be ascertained based on the
contents of the bid itself without recourse to extrinsic evidence. A
substantially responsive bid is one which conforms to the terms and
conditions of tender without material deviations. Material deviation is
one which makes the bid non-responsive and liable for rejection as per
terms and conditions of the tender document. A bid determined as
substantially not responsive shall be rejected and may not be
subsequently made responsive by correction/new submission as it will
change the substance of the bid.
20.1 EVALUATION OF SINGLE/COMPOSITE BID:
As a principle, clarifications from bidders after opening of tenders are to
be avoided to the extent possible in single stage composite bid system.
However, clarifications on the bids shall be sought wherever necessary
without affecting the quoted prices.
20.2 EVALUATION OF BIDS UNDER TWO BID SYSTEM:
20.2.1 The Techno Commercial-Unpriced Bids shall be opened first and
scrutinised by Indenting/ User department for compliance of technical
requirement. The Technical scrutiny report shall be prepared in a
tabular form with reference to Bid Evaluation Criteria and other
technical compliance as per tender condition, clearly indicating that the
bidder has met/not met a particular criterion. Technical queries (TQ), if
any, shall be prepared by user department and forwarded to C&P for
further taking up with the bidder.
The C&P department immediately after opening of the bids shall
arrange, commercial scrutiny in consultation with Finance and prepare
commercial queries (CQ).
It must be ensured that the queries asked for shall not have any bearing
on the price.
20.2.2 The C&P department shall forward the technical and commercial
queries seeking clarifications from the bidders. On receipt of response
from the bidders on TQ and CQ, the replies to the technical queries will
be forwarded to the user department who will prepare the final
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Technical Scrutiny Report regarding acceptance or rejection of the
offers. The final Technical Scrutiny Report for tenders under Two-Bid
system should be submitted with the approval of the concerned General
Manager / Project Head. The technical scrutiny report shall clearly
mention the reason of rejection of any bid.
The C&P department shall simultaneously prepare the commercial
scrutiny of the bids and prepare the final report vetted by Finance. The
rejection of any bid on commercial ground should clearly specify the
reason for rejection.
20.2.3 Once the technical and commercial evaluation is complete, a tender
committee shall put up recommendation for price bid opening of
techno-commercially acceptable bidders, by competent authority as per
DoP. All techno-commercially acceptable bidders, whose price bids are
to be opened shall be notified of the date of price bid opening giving up
to 5 (five) working days to attend the price bid opening if they so desire.
20.2.4 Price bids of unacceptable bidders, which remain unopened with OIL,
are to be returned to bidder after finalization of tender and award of
contract.
21.0 CLARIFICATION FROM BIDDERS AFTER TENDER OPENING
21.1 As a principle, the bid should be evaluated and processed based on the
information, details, documents etc. submitted by the bidder without
resorting to any communication with the bidder.
21.2 During the techno-commercial evaluation of the bids, if it is considered
necessary to seek clarifications from bidders in relation to their original
submission, technical and commercial queries based on the scrutiny of
the bids may be addressed to the bidders giving a reasonable time for
response. Such clarifications from the bidder should not be in
contradiction to their original submission and should never change the
substance of their original bid.
21.3 While seeking clarification from the bidders, it should not be pick and
choose and wherever required against any bidder, the clarification
should be sought from all such bidders. Any subsequent query can be
issued only after the tender committee deliberates and considers it
necessary for taking proper clarification. It is not allowed that bidder
should submit new documents which are not mentioned in the original
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submission.
21.4 While seeking clarification from the bidder and giving a reasonable time
for response a cut-off date should be indicated with a stipulation that in
case no response is received from the bidder, his bid will be evaluated
based on the submission.
21.5 POST TENDER MODIFICATION:
No unsolicited correspondence after submission of offer shall be taken
cognizance of or responded to. Post tender modification of bid is not
allowed.
21.6 WITHDRAWAL OF OFFER BY BIDDER:
In case bidder withdraws its bid within the bid validity period, Bid
Security will be forfeited and the party will be debarred as per the
“Guidelines for Banning business Dealings”.
21.7 FURNISHING FRAUDULENT INFORMATION/ DOCUMENT:
If it is found during the evaluation of the tender that a Bidder has
furnished fraudulent document/information, the Bid Security shall be
forfeited and the party debarred as per the “Guidelines for Banning
business Dealings”.
21.8 PRICE BID EVALUATION:
Once the prices bids are opened, a comparative statement of the bids
shall be prepared. The bids shall be evaluated considering prevailing
guidelines regarding applicability of duties and taxes, exemption of
duties, purchase preference, the basis of price for the purpose of
evaluation for deciding interse ranking. The price evaluation shall be
done strictly in accordance with the conditions mentioned in the tender
document which may include certain loading as specified in the tender.
21.9 Conditional and unsolicited discount will not be considered in
evaluation. However, if such bidder happens to be the lowest
recommended bidder, unsolicited discount without any condition will be
considered for computing the contract price.
21.10 TENDER COMMITTEE RECOMMENDATION:
The tender committee shall make final recommendation for award of job,
clearly deliberating all issues related to the subject tender during the
course of processing and evaluation.
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The tender committee recommendation shall be unambiguous for
consideration and acceptance by Competent Authority.
21.11 ACCEPTANCE OF RECOMMENDATION OF TENDER COMMITTEE:
a) Tender committee recommendations shall be put up for the approval
of competent approving authority as per DoP.
b) Competent authority can either approve the recommendation of
tender committee or give written directives to TC for reconsideration
of its recommendation with specific observation.
c) When the recommendation of tender committee is unanimous, and
the Competent Approving Authority does not agree with
recommendation, he / she will refer the case for a decision to the
next higher competent authority along with his / her
recommendation and giving reason for not agreeing with TC
recommendation.
d) In case there is dissenting view in the tender committee
recommendation, the Competent Approving Authority will be
empowered to accept the majority recommendation of the tender
committee. If the majority recommendation of the TC is not
acceptable, the Competent Approving Authority with his / her views
along with his / her recommendations shall refer the matter to next
higher Competent Approving Authority, empowered to take decision
and approve the majority recommendations with vetting from
Finance.
e) In cases where there is recorded difference of opinion amongst the
tender committee members and there is no majority view within the
tender committee, the matter shall be put up to the Competent
Approving Authority for decision.
21.12 PROPOSAL TO CORPORATE BUSINESS COMMITTEE (CBC):
a) Matter relating to any modification in OIL Policy related to
procurement of goods / works / services may be referred to the CBC
with recommendation endorsed by LMC / Head of Sphere / Project
for consideration and decision by CBC.
b) In all procurement cases exceeding delegated powers of Director as
56
competent authority, approval of CBC will be obtained, as the case
may be, after endorsement by LMC.
c) The procurement cases which exceed the power of CBC shall require
the approval of Board of Directors and the agenda for consideration
and approval by Board of Directors shall be put up as per guideline.
d) For CBC approval, self-explanatory note, duly signed by GM
(Commercial) or authorised signatory along with relevant documents
including LMC approval shall be sent to Head of C&P at Corporate
office.
e) Such note shall be sent well in advance having sufficient bid validity.
Head of C&P and Head-F&A at Corporate office shall examine the
proposal(s) and put up for the approval by CBC. In the process of
examination, if necessary, Corporate office may seek clarification(s)
from the LMC / Head of the Sphere / Project.
f) The agenda containing all details of the case with a self contained
note shall be circulated to all Functional Directors as well as to CMD
in advance for perusal.
g) For other spheres/projects, the concerned Head of sphere/project
will sign the CBC Note.
21.13 DECISION OF CORPORATE BUSSINESS COMMITTEE (CBC):
Based on deliberation in the CBC, the Corporate C&P department which
convenes the CBC meeting shall prepare minutes of CBC meeting which
contains the deliberation and the decision taken by the Corporate
Business Committee. The minutes of meeting shall be put up in
circulation to all CBC members for approval of the minutes.
21.14 COMMUNICATION OF CBC DECISION:
Once the minutes of CBC meeting are approved the Head of C&P at
Corporate Office shall communicate the decision to the concerned
Sphere / Project for further action like placement of order.
22.0 REASONABILITY OF RATES
Wherever there are atleast 3 (three) acceptable bids, the tender shall be
57
processed for award on L1 bidder. The variation between cost estimate
and the lowest of evaluated bid price shall call for review of the
estimate. Such review needs to be done more exhaustively where the
variation of the price is more than 10% of the cost estimate. This
analysis is required to arrive at proper decision for placing order also
keeping in view the other aspects like project schedule / operation etc.
Such review of cost estimate shall be done by indentor. The indentor
shall obtain additional financial sanction for increased amount and
revise the requisition for further processing of the case for award.
Alternatively if the procurement is for project, it should be confirmed
that the increased amount is covered under overall project.
23.0 INSUFFICIENT ACCEPTABLE BIDS
a) In case after inviting open/limited tenders, a single offer is found
techno-commercially acceptable, the order should be placed on the
single bidder as per the Delegation of Power provided at least one of
the following conditions are met :
i) The rates are considered reasonable.
ii) The requirement is urgent.
iii) The sources are really limited.
While making recommendation or proposal for such cases, the
applicable situation(s) as per above provisions shall be clearly
indicated in the recommendation.
b) The reasonableness of the rates or urgency of the requirement, as the
case maybe, would be certified by the indentor.
24.0 NEGOTIATION
24.1 No negotiations should be carried out even with L1 bidder. However,
under exceptional situation the negotiation can be held only with L1
bidder with the approval of competent authority. Competent authority
for the cases falling under the power of Director / CBC will be the Head
of Fields / Projects / Spheres.
24.2 Such exceptional situation would include the following:
i. Procurement of proprietary items;
ii. Items with limited sources of supply;
58
iii. Where there is suspicion of cartel formation.
24.3 Justification and details of such negotiation shall be duly recorded and
documented without any loss of time.
24.4 In cases where a decision is taken to go for re-tendering due to the
unreasonableness of the quoted rates, but the requirements are urgent
and a re-tender for the entire requirement would delay the availability
of the item, jeopardizing the essential operations, maintenance and
safety, negotiations would be permitted with L-1 bidder(s) for the
supply of a bare minimum quantity, subject to acceptance by the
bidder. The balance quantity shall, however, be procured expeditiously
through a re-tender, following the normal tendering process.
24.5 Negotiations shall not be misused as a tool for bargaining with L-1 with
dubious intentions or lead to delays in decision-making. Convincing
reasons must be recorded by the authority recommending negotiations.
Competent Purchase Authority should exercise due diligence
while accepting a tender or ordering negotiations or calling for a re-
tender and the time taken for according requisite approvals for the
entire process of negotiation and award of order should not exceed 30
days from the date of submission of recommendations. In no case shall
the overall timeframe exceed the validity period of the tender and it
should be ensured that tenders are invariably finalised within their
validity period.
24.6 APPROVING AUTHORITY FOR NEGOTIATION:
The approval for negotiation shall be accorded by the competent
authority as per DoP.
25.0 SPLITTING OF QUANTITIES
25.1 The cases where there is a possibility of splitting the order amongst
more than one bidder due to capacity constraint, such provision needs
to be pre-disclosed in the tender document to the effect that orders on
L-2 and L3 may be placed, subject to their matching the price with L-1
bidder and exhausting of the capacity of L1 bidder. This shall not be
deemed as negotiation. In case L2, L3 … bidders decline to match their
prices with L1 bidder, procurement of remaining quantity shall be
processed through re-tendering following the normal tendering
procedure.
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25.2 Where for critical services/supply more than one source is required,
the same should be pre-disclosed in the tender indicating the ratio on
which orders on L2, L3… bidders shall be placed subject to their
agreement of matching the prices offered by L-1 bidder. The ratio of
distribution shall be stipulated in such a way to offer comparatively
larger share to L-1 bidder. The above exercise shall not be considered
as negotiations.
25.3 Works / Services: In cases where entire work is divided into more than
one part and tender has provision for evaluation and award of the job
part wise, the entire work shall be finalized on least cost to OIL, if a
bidder happens to be the lowest in more than one part and has qualified
only for one or more than one of the parts and not for all parts, as the
case may be. Once certain part(s) is/are awarded to such L1 bidder, the
bidder ceases to be the lowest bidder for the remaining part(s). The
award of remaining part(s) on other bidders shall not be considered as
award on L2, L3 … bidder at differential price as capacity of L1 bidder
has already exhausted, resulting in placement of order on L2, L3…
bidders.
25.4 Counter offers to L1, in order to arrive at an acceptable price, shall
tantamount to negotiations.
25.5 In the event, the lowest bidder against a tender back out, such tender
will be refloated.
26.0 PLACEMENT OF ORDER
Once the proposal for award is approved by the Competent Authority,
the letter of intent should be issued on the same day, followed by
detailed letter of award.
27.0 PERFORMANCE SECURITY
27.1 The successful bidders are required to furnish performance guarantee
through security deposit called performance security. This is for
securing the performance of contracts/purchase order. Performance
guarantee is to be submitted by the successful contractor within the
stipulated time as per contract.
27.2 SUBMISSION OF PERFORMANCE SECURITY:
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Type of Contract Performance Security
Amount
Procurement of materials, works and
services up to an individual contract/order
value of Rs. 5 Lakhs
Nil
Procurement of Spares, materials of
proprietary nature from original
manufacturer, the sole selling agent of
OEM, authorized dealer and OEM services
Nil
Procurement of materials, goods, works
including LSTK contract
10% of contract/order
value
Hiring of contract services above Rs. 20
Lakhs
10% of annualized
contract value in case the
contract period is more
than 1 year
In case the contract period
is 1 year or less the
performance security shall
be 10% of contract value
Consulting service contract Nil.
Annual rate contract for
materials/services/works/AMC
8% of order value of
individual release order in
addition to retention of
EMD
Contracts for works/services where
estimated value is up to Rs. 20 Lakhs
7.5%
(initial security deposit
along with acceptance of
contract is to be deposited
for 2.5% and remaining
5% is to be recovered from
running account bill)
Labour contracts involving listed labourers
of OIL
7.5% of annualized
contract value
P.S. For the purpose of determining the amount of Security deposit for
performance, the contract / order value shall be considered excluding
taxes and duties which are paid extra by OIL.
27.3 Validity of the performance security/contract performance guarantee
shall be valid for 90 days beyond contract period/duration and
applicable warranty/guarantee/defect liability period (if any).
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27.4 MODE OF SUBMISSION OF PERFORMANCE SECURITY:
The Performance Security shall be in the form of a Demand Draft or
Bank Guarantee or irrevocable Letter of Credit (LC) from:
a) Any schedule Indian Bank or Any Branch of an International bank
situated in India and registered with Reserve Bank of India as
scheduled foreign bank in case of domestic bidder, or
b) In case of foreign bidder, the bank guarantee can be accepted from
any scheduled bank in India or from International bank who has its
branch in India registered with Reserve Bank of India.
c) Any foreign Bank which is not a Scheduled Bank in India, provided
the Bank Guarantee issued by such Bank is counter-guaranteed by
any Branch situated in India of any Scheduled Bank incorporated in
India
Bank Guarantee issued by a Bank, amongst others, must contain the
following particulars of such bank:
a) Full address.
b) Branch Code.
c) Code Nos. of the authorized signatory with full name and
designation.
d) Phone Nos., Fax Nos., E-mail address.
The domestic bidders will have to submit the Bank Guarantee from any
of the scheduled banks and on non-judicial stamp paper of requisite
value as per the Indian Stamp Act, purchased in the name of the
issuing banker.
The foreign bidder will submit the Bank Guarantee from Banks of
Indian origin situated in their country. In case no such bank of Indian
origin is situated in their country, the Bank Guarantee may be
submitted from the bankers as specified above.
27.5 MANAGEMENT OF PERFORMANCE SECURITY AND CLAIM
SETTLEMENT IF ANY :
Performance Security Deposit shall be released in accordance with the
terms of the contract / purchase order.
62
i) All concerned authorities shall ensure that details of all claims
which are to be recovered from the supplier / contractor are
promptly intimated to the respective payment authority, without
any loss of time, so that the claim can be recovered before
releasing the pending payment(s).
ii) Details of such claims shall also be forwarded to the authority who
has concluded the respective purchase order / contract / rate
contract and has obtained the Security Deposit. After completion
of the supplies / execution of the contract, the respective
authorities as mentioned below shall take prompt actions in
respect of the following:
(a) In case of purchase of goods, for recovery of any claims other
than discrepancies / recoveries indicated in the GRN,
the respective consignee(s) [including port consignee / C&F
section etc. shall forward the details of claims which are to be
recovered from the supplier, to the respective purchase officer,
immediately after completion of supplies against the purchase
order, i.e. within 15 days after receipt of last lot of material.
Even if there is no claim against a particular purchase order,
the consignee(s) should forward a “No Demand Certificate” to
the respective purchase officer within the stipulated time
as above. Further, in procurement of spares from foreign
OEMs and also in cases where payments are made through L/C
or Advance, concerned department should be more vigilant to
take immediate actions for notifying such discrepancies/short
supplies to the C&P department, enabling them to take up
the matter with the suppliers for making good the same without
any loss of time.
In case of import, while Kolkata shipping office shall take all
necessary action as per provision of the Purchase Order.
However, claim if any is to be reported to the office who has
finalized the purchase order. Further if there is no claim “no
demand certificate” should also be sent to the purchase section
from where the order is placed.
(b) Wherever installation and commissioning is involved along with
supply of the equipments, indent or after the commissioning
shall forward a copy of satisfactory installation and
commissioning report along with details of outstanding claims
(if any) or a “No Demand Certificate”, to the authority who has
concluded the respective purchase order / contract, within 15
63
days after completion of installation and commissioning of the
equipment satisfactorily.
(c) In case of Service Contracts, Indentor shall forward details
of outstanding claims (if any, which could not be recovered from
the regular payments) or a “No Demand Certificate”, to the
authority who has concluded the respective contract, within
15 days after expiry of the contract period.
(d) In case of LSTK contracts, equipment, packages, where Contract
Security is obtained to cover the warranty period also, Indentor
shall forward details of outstanding claims (if any) or a “No
Demand Certificate”, to the authority who has concluded the
respective contract, within 15 days after expiry of the warranty
period.
iii) In all cases, wherever the claims are to be recovered from the
Security Deposit, it should be ensured that the claims with
complete details are forwarded to the concerned authority(ies) well
before the expiry of the validity of Performance Security.
Under exceptional circumstances, where the above details cannot
be furnished within the stipulated time, approval from Head of
Department shall be obtained by the respective authority(ies) giving
full reasons necessitating additional time for furnishing “No
Demand Certificate”. Such approval shall be forwarded to the
concerned purchase officer / contract concluding authority for
obtaining suitable extension for the validity of Performance Bond.
iv) On receipt of intimation regarding claims for recovery (if any) /
“No Demand Certificate”, the concerned purchase officer /
contract concluding authority shall verify whether the claims have
already been recovered from the payments. After release of final
payments, if any claims are outstanding for recovery, necessary
action should be initiated to recover the same from the Security
Deposit.
Thereafter, for the release of Contract Security (after recovering the
claims if any as mentioned above), the approval shall be obtained as
per provisions mentioned for release of Performance Security in the
contract.
The Competent Purchase Authority (who has approved award of
contract) shall have powers to approve release of Performance
64
Security. However, concerned Head of the department shall have
full powers in this regard, irrespective of the type of tender or value
of tender / order / contract, including for cases falling within the
powers of Directors and CBC. Accordingly, necessary advice shall be
issued to the concerned Finance section for releasing the Security
Deposit / Performance Security.
27.6 INVOKING OF BANK GUARANTEE:
Prior approval of Head of department will be obtained for invoking /
forfeiting the PBG including CBC level cases. The head of associate
finance will be informed to invoke the bank guarantee.
The original bank guarantee will be forwarded to concerned Finance
section retaining a photocopy of the same with C&P Department for
reference.
The invocation/forfeiture of Performance Security/Security Deposit is
to be issued before 10 days of expiry of Bank Guarantee (BG). A
proforma notice of invocation of BG is at annexed________________.
27.7 EXAMINATION / VERIFICATION OF PERFORMANCE SECURITY:
All performance bank guarantees received against a contract/order,
after comparing the order no., amount of the bank guarantee and name
of the party on whose behalf it has been issued, the C&P department
shall send the same to Finance. The F&A Department for
checking/vetting the following:
i) Whether the language of the BG is verbatim as per the format
provided by OIL.
ii) In case of any discrepancy with regard to the value of non-judicial
stamp and change / modification in the language by bank, the
bank guarantee shall be examined by law department for its
acceptance.
iii) In order to know the authenticity of the bank guarantee submitted
by the bidder, the Finance department shall take up the matter
with the issuing bank for verification of the BG.
28.0 REPEAT ORDERS FOR SUPPLY OF GOODS/MATERIALS (PURCHASE
65
ORDERS)
28.1 The repeat order cannot be considered as a routine manner and can be
exercised in an exceptional circumstances. The procurement on repeat
order basis is not desirable as it does not meet the basic requirement of
competitive bidding for procurement and current market situation.
While seeking approval for resorting to repeat order, adequate
justification needs to be furnished to the Approving Authority.
Repeat order can be considered up to 50% of original quantity on the
supplier on whom the original order was placed on same terms and
conditions within the currency of the supply / delivery period. No repeat
order should be placed against an order which has been already closed.
The indentor shall certify that :
i) There is apparent escalation in prices in the market and no
unintended benefit is likely to be passed on to the vendor.
ii) The normal processing of the case is likely to delay the
procurement and adversely affect the work.
iii) The repeat order shall not be placed against those purchase orders
which have been placed as an emergency purchase, order on
nomination basis, where market shows downward trend in the
prices.
29.0 EXTENSION OF SERVICE CONTRACTS
a) Service Contracts are awarded for a specific period at rate and other
terms and conditions. Generally such contracts have a provision for
extension of contract period by a specific time (maximum of 50% of the
original contract period) beyond the contract period on same terms and
conditions.
In case of such service contract, timely action should be taken for
initiating the process for signing a new contract so as to avoid exercising
the provision of extension beyond original period, which is only an
enabling provision.
In exceptional circumstances if the contract period is extended even after
exhausting the provision of contract for time extension such exercise
shall be treated as contract on nomination basis. This shall require
approval of competent authority as per DOP for value of the contract
during the extended period.
66
b) In case of service contract for hiring of rigs & well services where the
original contract period is normally longer and generally requires further
extension, the original contract period at the time of tendering may be
envisaged in such a manner as to cover maximum operational time
requirement. The provision of extension up to 50% of the original
contract period needs to be incorporated in the tender document so that
the bidder quotes the prices accordingly.
c) No contract shall be extended after a contract is closed.
30.0 PUBLIC PROCUREMENT POLICY FOR MICRO AND SMALL
ENTERPRISES (MSES)
30.1 Government of India, vide Gazette of India no. 503 dated 26.03.2012
has proclaimed the Public Procurement Policy on procurement of goods
and services (not applicable for Works/Contracts) from Micro & Small
Enterprises (MSEs) by all Central Ministries/Departments/PSUs for
promotion and development of Micro and Small Enterprises.
Accordingly, following provisions shall be incorporated in all tenders:
i) Issue of tender documents to MSEs free of cost.
ii) Exemption to MSEs from payment of EMD / Bid Security.
iii) In tender, participating Micro and Small Enterprises, quoting price
within price band of L1 + 15% shall also be allowed to supply a
portion of requirement by bringing down their prices to L1 price in a
situation where L1 price is from someone other than a Micro and
Small Enterprises and such Micro and Small Enterprises shall be
allowed to supply up to 20% of the total tendered value. In case of
more than one such Micro and Small Enterprises, the supply shall be
shared equally subject to matching the L1 price.
iv) The government vide office memorandum no. 21(1)/2014-MA dated
12.02.2015 have intimated that in the situation of L-1+15% and
subsequent matching of L-1 price, CPSUs may take more than 20%
supplies from micro and small enterprises as per their previous
procurement pattern on case to case basis for which the Ministry has
no objection. In this connection, OIL has already issued an internal
guideline vide circular no. GM(Com.):02/01-478 dated 14.08.2015.
Further, out of above 20%, 4% (20% of 20%) shall be from MSEs
owned by SC/ST entrepreneurs. This quota is to be transferred to
other MSEs in case of non-availability of MSEs owned by SC/ST
entrepreneurs.
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In case tendered item is not splitable or non-dividable, MSE quoting
price within the price band L1 (other than MSE) + 15%, maybe
awarded full / complete value of supplies/contract subject to
matching of L1 price.
The MSEs owned by SC/ST entrepreneurs shall mean:
a) In case of Proprietary MSE, proprietor(s) shall be SC/ST.
b) In case of Partnership MSE, the SC/ST partners shall be holding
atleast 51% share in the unit.
c) In case of Private Limited Companies, atleast 51% share is held by
SC/ST. If the MSE is owned by SC/ST entrepreneurs, the bidder
shall furnish appropriate documentary evidence in this regard.
v) The quoted prices against various items shall remain valid in case of
splitting of quantities of the items as above.
vi) In case bidder is a Micro and Small Enterprise under the Micro,
Small and Medium Enterprises Development Act 2006, the bidder
shall submit the following:
a. Documentary evidence that the bidder is a Micro or Small
Enterprises registered with District Industry Centers or Khadi and
Village Industries Commission or Khadi and Village Industries
Board or Coir Board or National Small Industries Corporation or
Directorate of Handicrafts and Handloom or any other body
specified by Ministry of MSME.
b. If the MSE is owned by SC/ST entrepreneurs the bidder shall
furnish appropriate documentary evidence in this regard.
The above documents submitted by the bidders shall be duly
certified by the Statutory Auditor of the bidder or a practicing
Chartered Accountant (not being an employee or a Director or
having any interest in the bidders company / firm) where audited
accounts are not mandatory as per law.
If the bidder does not provide the above confirmation or appropriate
document or any evidence, then it will be presumed that they do not
qualify for any preference admissible in the Public Procurement
Policy (PPP), 2012.
30.2 In accordance with the provisions of the said policy, the HoD (C&P)
shall be the Nodal Officer for implementation of the policy and
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redressing grievances as notified vide Gazette of India no. 502 dated
26.03.2012.
30.3 In order to comply with the provisions relating to enhancing
participation of MSEs, notified vide aforesaid Gazette issued by Govt. of
India, Spheres / Projects to conduct Periodical Interactive Meets with
vendors for resolution of their issues, besides educating them about
OIL’s tendering procedure.
30.4 A list of 358 items notified by the aforesaid Gazette of Govt. of India are
reserved for exclusive purchase from MSEs. Attempt may be made for
purchase of the listed items from MSEs.
30.5 Procurement of the material/services from sub-vendors (who fall under
the category of MSEs) by suppliers/ vendors/ contractors against the
orders placed by OIL can also be considered as part of achievement of
target of procurement of MSEs, provided such procurements are
traceable.
Accordingly, the following clause may be included in the tender
document:
“If against an order placed by OIL, successful bidder(s) (other than
Micro / Small Enterprise) is procuring materials/services from their
sub-vendor who is a Micro or Small Enterprise registered with District
Industry Centers or Khadi and Village Industries Commission or Khadi
and Village Industries Board or Coir Board or National Small Industries
Corporation or Directorate of Handicrafts and Handloom or any other
body specified by Ministry of MSME with prior consent in writing of the
purchasing authority / engineer in charge the details like Name,
Registration No., Address, Contact No. details of material and value of
procurement made, etc. of such enterprises shall be furnished by the
successful bidder at the time of submission of invoice/bill.”
30.6 PURCHASE PREFERENCE:
Normally no purchase or price preference is permissible. However as per
the extant guidelines of Government of India from time to time,
purchase preference may be allowed to the extent permitted. If there is a
purchase preference available to a particular category or class of
bidders, the same shall be mentioned in the Bid Documents.
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31.0 E-PROCUREMENT
31.1 E-Procurement is a web based application where apart from others, e-
tendering and e-reverse auction are carried out through internet in an
online environment in effective and transparent way.
31.2 E-TENDER:
E - Tendering is the process of floating tender and receipt of bids from
the bidders through internet portal. OIL is presently using MY SAP SRM
for e-tendering. Threshold value for E-tender is presently fixed at Rs. 10
Lakhs. Publications of tender in News papers/ OIL website/ Govt.
portals are to be done in the same manner as in case of physical
tenders.
31.3 MODALITIES OF E-TENDERING PROCESS:
31.3.1 The Purchase requisition (PR) is made in the SAP system by
maintaining the relevant e-tender related purchasing group in the PR.
PR to be released in the system as per the normal release/approval
process. The first three letters shall define the purchase group of the
tender. The next four Digits are running serial numbers. Then “L”
indicates Limited Tender and “P” indicated Press Tender. Last two Digits
is the Year of the Tender.
31.3.2 Released PR's to be transported to e-tender server for doing e-Tendering.
The following needs to be taken care of before replication:
i. PR is fully released in system.
ii. Materials in the PR are already in the e-Tender system.
iii. The replication date is greater than the Max. Delivery Date as per the
PR.
Note: In the following scenarios PR replication is not possible and
Manual tendering is required.
a) PR with unknown A/C Assignment
b) PR without Plant Data
c) PR Services without Quantity
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31.3.3 The tender number is generated in SAP system and the same is to be
created in the e-Tender portal by linking the PR through carryout
sourcing. As the tender type cannot be changed after creation utmost
care must be taken while creating a tender in the portal.
31.3.4 Tenders are prepared as per the type and requirement and are
published through e-tender portal online. Before Tender publication,
Tender Documents Folder in the Technical Rfx folder shall be released.
Once the Tenders are published, no files from the Tender folders are
allowed to be deleted or modified. An Amendment shall be incorporated
in the Amendment folder only. This folder shall not be released. For
Limited Tenders, name of the bidders are maintained in the bidders
page of the e-tender portal and once the tender is published, system
generated automatic e-mail inviting bid from the bidders is sent
automatically by the system.
31.3.5 For press e-tender, a guest bidder is maintained and any bidder can
view and download the tender document through guest log in the OIL's
e-tender portal. Also registered vendors with OIL, who have a user ID
and password for OIL’s e-tender portal, can view any press tender
document by logging onto the e-portal using their user ID and
password. Dealing officer shall authorize the registered vendors to bid
against a tender after receipt of tender fee against the same.
Alternatively, tender fee can also be paid online through OIL's e-tender
portal. For waiver of tender Fee by any bidder on account of NSIC
register etc., to bid against any press e-tender, a bidder is required to
request the tender handling office with requisite document for waiver.
Tendering officer after getting requisite document can waived the tender
fee for the bidder. Unless the bidder's data is maintained and allowed,
bidders cannot bid.
31.3.6 Bidders can submit their bids any time before the bid closing date and
time. Bid modification and / or withdrawal after submission is allowed
before the due date and time of submission.
31.3.7 E-tender system has the in-built checks which controls and accepts
only bids submitted before the bid closing date and time. Similarly it
checks requisite digital certificate (presently it allows Class III digital
certificate only). The "time" is the SRM system Server's time which is
displayed on the e- Tendering screen.
31.3.8 Bids can be opened in the system by multiparty opening after the
opening Date and time maintained in the system are over. Therefore,
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unlike physical tender, at the time of bid opening, physical signature of
Tendering officer as well as Account officer is not required in the
document. However, about the important parameter like receipt of
tender sample, hard copy of original bid bond whenever required are to
be recorded at the time of bid opening.
31.3.9 The bid security, wherever applicable, is taken in physical form which
should be submitted before the bid opening date & time. Bid security
can also be submitted online through the e-tender portal.
31.4 PRE-REQUISITES FOR SUBMISSION OF TENDERS ONLINE:
31.4.1 Supplier shall have a valid User Id & Password to access OIL e-
Procurement site.
31.4.2 Supplier shall have a legally valid digital certificate as per Indian IT Act
2000 from the licensed Certifying Authorities operating under the Root
Certifying Authority of India (RCAI), Controller of Certifying Authorities
(CCA) of India. Class 3 digital certificate for the designated individual
with organization name & legally valid digital certificate in India is
required for online bidding.
31.5 GENERAL GUIDELINE FOR E-TENDERING:
31.5.1 In e-Tender system, in case of Composite bid system, Bid closing and
Opening Date are maintained same but a time gap of minimum 3 hours
shall be maintained between closing and opening of bids.
31.5.2 In e-Tender system, in case of two-bid system, Bid closing and Techno-
commercial Unpriced Bid Opening Date are maintained same but a time
gap of minimum 3 hours shall be maintained between closing and
opening of bids. However, to ensure that a commercial bid does not
open, a future date and time are maintained in the system under
Opening Date and time such as 2099. Once the technical opening date
and Time are past, Technical Bids can be opened in the system.
Therefore, a gap of minimum 3 hours is kept between bid closing and
bid opening time in order to check the number of offers received and to
take action for extension of bid closing date if required as per the
business process.
31.5.3 For e-tenders, unlike physical tender, at the time of bid opening,
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physical signature of Tendering officer as well as Account officer is not
required on the offers. However, about the important parameter like
receipt of tender sample, hard copy of original bid bond whenever
required are to be recorded at the time of bid opening.
32.0 E-REVERSE AUCTION
32.1 Unlike in normal auction, where prices are auctioned from seller's point
of view & the highest price is awarded the auction, in reverse auction
prices are auctioned from purchaser's point of view & the most
competitive lowest price is awarded the auction. As a part of e-
Procurement tool, through Reverse Auction Process, competitive prices
of short listed bidders are auctioned online in fair & transparent
manner.
Presently, Reverse Auction in OIL is done through Service Provider.
Option for e-Reverse Auction at present is available for tubular tenders
having value more than INR 1.00 Crore. However, decision to go for a
Reverse Auction is subject to the requirement of Specific Tender.
32.2 MODALITIES OF E- REVERSE AUCTION PROCESS:
32.2.1 BID INVITATION
Tender that would be subject to Reverse Auction shall be clearly
mentioned in NIT. E-tenders where in Reverse Auction is proposed shall
be floated under Two bid system. All tenders generated in the system
and documents uploaded by the purchaser must be digitally signed
before publication of the tender.
32.2.2 BID SUBMISSION
All bids and bid documents uploaded by the supplier must be digitally
signed before submission. Submitted bids cannot be viewed by the
purchaser till the tender opening date and time. Bid modification and /
or withdrawal after submission is allowed before the due date and time
of submission.
32.2.3 REVERSE AUCTION
Reverse auction event is scheduled after the bidder submits his online
technical bid. All techno- commercially acceptable bidders participating
in the tender get an opportunity to quote/revise their total price within
the date and time specified for reverse auction.
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32.2.4 PRICED OFFER
Tenders where Reverse Auction will be conducted, price offers will be
asked in Simple Price Format where in bidders are to provide the price
in single component by taking into consideration of all detailed
components. For arriving at single price, bidders will be provided with
calculation sheet along with the Tender document.
32.2.5 Bidders participating in the reverse auction are required to sign and
forward the agreement accepting OIL's Reverse Auction Process related
terms and condition along with offer.
32.2.6 AUCTION TYPE
i. 'Rank with L-1 Price' bid format In "Rank with L-1 Price" bid format,
during the process of Reverse Auction, the short-listed bidders shall
be able to see only the current lowest price and their respective
ranks/position during the online bidding process in the system,
based on which they may reduce their prices. This type of auction
shall be adopted in those tenders where neither any purchase nor any
price preference is applicable.
ii. 'Rank Only' bid format In "Rank Only" bid format, during the process
of Reverse Auction, the short-listed bidders shall be able to see only
their respective ranks/position during the online bidding process in
the system, based on which they may reduce their prices. This type
of auction shall be adopted in case of tenders, where purchase
preference (for CPSU's/NSIC Registered companies), so as to take care
of purchase preference at the end of the Reverse Auction. OIL decide
on choice of the option i.e. "Rank with L-1 price" or "Rank Only" at the
time of short- listing of the bidders as composition of bidders are
known only after opening of bids. Bidders are informed in advance
about the type of auction.
32.2.7 START BID PRICE
Start bid price would be evaluated L-1 price based on Techno-
Commercially Lowest offer. Bidders can quote only lower than the start
bid price. A bidder here can revise his bid as per the bid decrement
intimated at the start of the bidding process. The reverse price must be
lower than the lowest price at the point of time. There will be one bidder
at a particular position/rank, the criteria followed here is of price only.
So, the bidder who quotes the lowest price is declared as the winner of
the auction. To evaluate the L-1 Price, of different kind of tenders, the
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evaluation criteria shall be as under:
Decrement Value The decrement value during Reverse Auction shall be
0.5% of the start price or its multiple.
32.2.8 PRICE EVALUATION IN REVERSE AUCTION:
To evaluate the offers on equal footing, the calculation schema (separate
for Indigenous and Foreign Bidders) shall be prepared and provided with
the tender. Also, the applicable exchange rate for conversion of Foreign
Currency in INR and the applicable rate of Custom duty shall be
conveyed to the concerned bidders prior to commencement of Reverse
Auction.
A. LCB (Local Competitive Bidding) The Price for the Reverse Auction
would be for the FOR Destination Price, which shall include all the
components of Taxes and Levies applicable, Freight, Insurance etc.
B. ICB (International Competitive Bidding)
Only Foreign Bidders the Price for Reverse Auction should be the CIF
Landed Price, which should include all the components e.g. FOB
charges, Freight, Insurance, Landing Charges, Custom Duty etc.
Mixed Bidders "Ex-Works Price (Including Custom Duty on Import
Component, Excise Duty on finished product plus Sales Tax/VAT) "
for Domestic Bidders and "CIF Landed Price (i.e. Quoted FOB price +
Quoted Freight + Insurance @ 1% on FOB) + Custom Duty ( On Total
CIF value + landing charges @ 1% of CIF value)" for Foreign Bidder.
If there is no acceptable foreign bidder, then the evaluation of the
domestic bidders shall be made on FOR destination basis.
32.2.9 PURCHASE PREFERENCE
In case of purchase preference as per Govt. Policy, as may be notified
from time to time to any category of bidders, and if any of the short
listed bidders are eligible for such purchase preference in terms of
policy, such bidders shall get opportunity to match the L-1 price
concluded after reverse auction, if their final prices in Reverse Auction
fall within the permitted percentage.
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32.2.10 CONVERSION RATE
While evaluating the bids, the closing B.C. selling market rates of
exchange declared by the State Bank of India on the day prior to the
price bid opening will be taken into account for conversion of foreign
currency in to Indian Rupees as per present practice.
32.3 SALIENT BUSINESS RULES:
Start Bid Price
Start Bid Price is the Techno- Commercial Lowest price fixed for the
reverse auction event. Bidders can bid only lower than the start bid
Price. Start bid price will be available to the bidders during the start of
the auction on the auction site.
Bid Decrement
Bid decrement is the fixed amount by which, or by multiples of which,
the next bid value can be decreased. Bid decrement shall be available to
the bidders during the start of the auction on the auction site.
Bid Price in reverse auction
The bidder's bid in the reverse auction must represent the total price bid
for the items in reverse auction.
Auction Duration
This process shall initially be held for a period of 60 minutes. In case
there is bidding by any bidder within last 5 minutes of closing of the
auction, the auction will be extended by another 5 minutes. Such
extension will be allowed to continue till no quote is placed within 5
minutes of last quote. As regards to the failure of Electricity /
Connectivity at OIL's end, the auction event will be extended suitably,
however in case of such events at bidder's end; they are responsible for
necessary alternate arrangements.
Price Bid Evaluation and award of purchase order
At the end of reverse auction process, overall best Bid of Reverse Auction
shall be identified.
32.4 Tender committee members or their authorized representative shall
remain on the spot till the completion of the Reverse Auction process.
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32.5 In order to maintain the sanctity, unauthorized communication shall
not be allowed during the Reverse Auction process. Therefore, any
communication device like mobile phone etc. must not be carried by
anyone in the room where Reverse Auction is carried out. One or two
phone line connection (landline) shall be made available in the room for
authorized interaction with the bidders if necessary. The identified
numbers of OIL for this purpose shall be intimated to bidders well in
advance. Likewise, the telephone numbers of the bidders for the
authorized interaction with bidders should be obtained through bidders’
response sheet. Conversational communication with bidder should be
avoided during the online Reverse Auction process unless considered
inevitable/appropriate/necessary by the tender committee.
32.6 Bidders at their own interest must ensure uninterrupted internet
connectivity at their end during the Reverse Auction with necessary
backups to take care of any connectivity problem. However, in case of
failure in connectivity of any of the bidders, the Reverse Auction time
shall be extended by maximum of 10 minutes upon receipt of request
from the bidder during Reverse Auction and such extension shall not
exceed one per bidder. The extension of auction time shall be
communicated to all the bidders through system broadcast message
and also communicated telephonically to all bidders who are
disconnected from the system at that point of time. No request after
completion of Reverse Auction shall be considered. In case OIL is unable
to extend the auction time due to some unavoidable reason and the
auction happens to end before such extension, OIL has right to launch
a fresh auction immediately with the last bid price of the respective
bidder in the earlier auction as the starting price. Such action shall be
brought out in the proceeding of the tender committee recommendation.
32.7 In case due to failure/break in internet connectivity on OIL’s system
end, the Reverse Auction shall be re-opened. In such a situation, the
dealing officer of C&P department shall obtain a status report from the
IT department and thereafter tender committee shall put up
recommendation to the competent authority for approval to conduct the
Reverse Auction again. Such Reverse Auction shall be conducted with
last bid price of the respective bidder in the earlier auction as the
starting price.
32.8 On completion of the Reverse Auction, the history of the Reverse
Auction shall be taken from the system for further processing. The
tender committee member or their authorized representative shall sign
such proceeding.
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32.9 Offers of short listed bidders, who have confirmed acceptance to OIL
tender conditions on reverse auction, but do not participate in Reverse
Auction, irrespective of their prices quoted in e-portal price bid. (In
addition to rejection of bid, the bid security will also be invoked in such
case.). In case such bidder (who does not participate in the Reverse
Auction) happens to be the evaluated L1 bidder, the tender will need to
be re-invited as per CVC guideline. If a bidder does not want to quote
any price below the ceiling price during Reverse Auction, their “Logged
In” during Reverse Auction itself shall be considered as Participation.
32.10 Once the process is complete, the tender shall be processed for award
based on L1 price received against Reverse Auction.
32.11 The price reasonableness will still be needed to establish even after
Reverse Auction.
33.0 EXPRESSION OF INTEREST (EOI)
33.1 EOI is normally used for exploring the market for new technology,
business diversification etc. The EOI is not an activity of tendering as
through this method we seek only the interest of the likely agencies
available in the market for a particular technology, consultancy and
diversification, and there is no commitment of entering into a commercial
contract out of this exercise. This method can also be used for identifying
the proper sources, suppliers and service providers for new technology,
latest equipment and best practices. This can also be used where the
owner is not reasonably sure on the specification / scope of work /
source of supply and would like to have the input from the prospective
agencies in the market.
33.2 Request for Expression of Interest shall be published at least in 2 (two)
national dailies, OIL website and Govt. Portals.
33.3 Request for EOI should include the following :
i. Brief description about objective of carrying out assignment, broad
scope of work and expected deliverables.
ii. Minimum qualifying criteria for subject job to the extent OIL has got
the knowledge of the subject.
iii. The place / work site where assignment is to be executed.
iv. Instruction regarding nature of job, submission requirement, last date
of submission, place of submission and any other related instruction
which is considered necessary.
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v. The formats under which the agencies are required to submit their
expression of interest.
34.0 PROCUREMENT OF GOODS / SERVICES FOR E&P JOB UNDER
PRODUCTION SHARING CONTRACT (PSC)
34.1 The Production Sharing Contract (PSC) contains procedure for
acquisition for goods and services in various categories depending upon
the value as applicable on day. This procedure normally divides the
procurement in three procedures namely A, B and C.
34.2 Procedure C is for higher values of procurement i.e. equal to or more
than US $ 500,000.00. As per procedure C, bidders are to be pre-
qualified through open advertisement to be published in at least 3
(three) daily national Indian newspapers. The entities who respond
against this enquiry shall be short-listed / pre-qualified.
34.3 Thereafter, the detailed tender document issued to the pre-qualified
entities to submit bids for further processing and award as per laid
down procedure in PSC.
34.4 In view of provision of PSC, all procurement necessarily should be as
per the procedure provided in the respective Production Sharing
Contract.
35.0 CENTRALIZED PROCUREMENT
35.1 The common items, consumables, spare parts and services should be
selected across Oil India Limited. The procurement of such items,
consumables, spare parts and services is preferred to be done from one
place. The appropriate place considering the logistic and other facilities
may be selected by C&P department. The selected unit /place shall seek
requirement from all spheres/projects at least once in a year with
projection of annual requirement. The procurement activities shall be
initiated from the centralized unit.
35.2 The user department shall provide support during the processing of the
procurement in respect of technical evaluation by deputing a
representative for technical scrutiny of the offers at the designated unit.
35.3 For the materials / items being procured from the centralized unit, the
tender shall have a provision for delivery of materials at various
locations.
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35.4 In case the evaluation on FOT site basis, all inclusive, the bid shall be
evaluated for respective quantity for each sphere / project, to decide the
interse ranking and the order shall be placed on the lowest price bids
only.
36.0 EMPANELMENT OF VENDOR / CONTRACTOR / CONSULTANT /
SERVICE PROVIDER FOR LIMITED TENDERING
36.1 The empanelment of vendor / contractor /consultant /service provider
shall be carried out as per laid down procedure.
36.2 The exercise for empanelment of vendor / contractor /consultant
/service provider should be conducted once in a year.
36.3 Such panel shall be valid for 2 (two) years and to be updated every year.
36.4 The empanelment should be done through open advertisement like the
process being followed for procurement for open tenders.
36.5 The qualifying criteria shall be same as being used for procurement of
such items / services / works in case of normal tendering.
36.6 A committee consisting of members from user department, C&P and
finance shall be constituted. This committee shall formulate qualifying
criteria and evaluate the offers and make recommendation for approval
by competent authority.
36.7 Such panel shall be used for purpose of issuing limited tender on
domestic / limited ICB basis. In case of such limited tender no BEC is
required.
36.8 The limited tenders based on the above empanelled vendor list shall
also be posted on the website only for information and not for bidding.
37.0 STANDARDIZATION OF BEC
37.1 There are certain items, materials, services / works which are repeatedly
in use. It is advised that for such items, materials, services / works the
bid evaluation criteria should be standardized. The standard BEC shall
be used across OIL at all spheres / projects so as to maintain uniformity
in procurement of similar items in OIL.
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37.2 The items, materials, services / works for which there are standard BEC,
we need not generate another BEC against each and every tender. The
standard BEC should be used.
In case of exceptional situation, due to certain operational requirement,
with reasons to be recorded, the standard BEC may be modified to the
minimal extent to meet the operational requirement of the particular case.
This shall be done with the approval of competent authority on
recommendation of the committee.
37.3 The standardized BEC in OIL needs to be reviewed at least once in 2
(two) years to take care of subsequent development in terms of items,
materials, services / works.
38.0 CORRESPONDENCE WITH BIDDERS
All correspondence before award of contract seeking clarification
(technical and commercial) must be done by C&P. After the contract is
awarded, if considered necessary, indentor can correspond with
suppliers. In case of LSTK and other complex contracts, the indentor can
correspond regarding day to day execution of the contract and issues
arising during the execution of the contract, with a copy of the
correspondence for information of C&P department.
39.0 HANDLING OF COMPLAINT / REPRESENTATION / ARBITRATION
39.1 In case any complaint / representation in respect of ongoing tender,
received in OIL, the same shall be handled as under :
(i) Anonymous representation / claim received should be ignored.
(ii) If a proper representation is received when the tender is under
process of consideration / evaluation, the same should be examined
by the complaint handling committee and comments / deliberation /
recommendation should appear in the tender committee
recommendation.
(iii) In case of any complaint on ongoing tender, the complaint should be
promptly examined by the dealing officer, whether there is any merit
for corrective action, if required. The dealing officer shall then put up
the case to the Complaint Handling Committee. If Complaint
Handling Committee is of the view that there is no substance to
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review or action, the procurement process shall continue and such
complaint shall not become the reason for keeping the tender on
hold.
(iv) In case the Complaint Handling Committee takes the view that there
is merit in the complaint and feels that OIL may be required to take
any corrective action, the committee shall make recommendation for
putting the tender on hold till a detailed analysis and decision is
taken. Such recommendation requires the approval of the Head of
the Sphere / Project.
(v) Any complaint or representation received after award of the contract
should be examined and dealt with suitably so that corrective action
if any can be taken in future.
(vi) However, till the time a Complaint Handling Committee is in place,
the complaints / representations related to technical issues shall be
handled by the technical department and complaints /
representations related to commercial issues shall be handled by
C&P department. In case, required, the matter may be referred to the
tender committee for further deliberation / advice.
39.2 ARBITRATION
Arbitration will be as per terms and conditions of general and special
conditions of the contract / order.
40.0 THE INTEGRITY PACT (IP)
IP shall be applicable for all tenders valuing more than Rs. 50.00 Lakhs
or as decided by the competent authority from time to time. Bidder shall
be required to sign the Integrity Pact as per prescribed format, to be part
of the tender document. The proforma duly signed by OIL's competent
signatory shall be issued along with the tender document. The proforma
has to be returned by the bidder along with the bid (along with the
"Techno Commercial-Unpriced Bid" in case of two bid/two stage bidding)
duly signed by the same signatory who signed the bid.
40.1 Incomplete submission of IP documents with the bid should not lead to
disqualification of a bidder, who otherwise qualifies and agrees to abide
to IP. The bidder could be asked to comply to all IP guidelines
subsequently.
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40.2 OIL shall appoint competent and credible Independent External Monitor
/ Monitor (IEMs) for IP. The task of the Monitor is to review
independently and objectively, whether and to what extent the parties
comply with the obligations under this agreement.
41.0 PROCEDURE FOR OBTAINING DGCA PERMIT AND EXPLOSIVE
LICENCE
41.1 Requirements of explosives items and Radio-active items of foreign origin
for OIL's operation at Duliajan are to be brought by Air up to Kolkata.
However, if there is no cargo flight available to Kolkata, shipment to
Mumbai/ Delhi/ other airports can be considered. After clearance of the
explosives at destination airports, these are brought to Duliajan by
explosive vans. Steps involved in procurement of explosives are as under.
a) Bidders are to be advised to furnish following additional information
in their offer while quoting:
i) Name as assigned by IATA.
ii) IATA class.
iii) U.N. Code No.
iv) Nett weight.
v) No. of package and net weight per package.
vi) Airport of embarkation.
Note: The above details to be verified at the time of scrutiny of offers.
41.2 APPLICATION FOR DGCA PERMIT:
Application for DGCA (Directorate General of Civil Aviation) permit is
prepared as per format specified by DGCA. All entries in the application
must be made in block letters. The particulars of items to be air
freighted shall be furnished in enclosure to the application providing
following information:
(i) Description
(ii) IATA Name
(iii) IATA Class
(iv) UN No.
(v) Quantity
(vi) Nett weight
(vii) No. of packages
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(viii) Nett weight per package
Note: The covering letter as well as enclosures of the application must be
signed and stamped with official seal.
41.3 APPLICATION FOR EXPLOSIVE LICENCE:
Application to Chief Controller of Explosives (CCE) is prepared as per
format specified by CCE. The following are enclosed with the application:
(i) Application Form AE-8 in duplicate along with 4 copies of
photographs of OCCUPIER.
(ii) Crossed Bank Draft for requisite amount drawn in favour of Chief
Controller of Explosives payable at Nagpur.
(iii) List of goods (6 Copies) duly signed and sealed.
(iv) Certificate of Authorization in respect of the explosives proposed for import issued by the Competent Authority of the Originating Country.
(v) Report from the Explosives Return System (ERS) showing stock position of the magazine proposed for storage of the imported explosives.
(vi) List of PEL/ML areas where explosives to be used. (vii) DGCA landing permit.
All pages should be signed and stamped.
41.4 The original application shall be forwarded to the service provider,
engaged by OIL for the purposes. Copy of above application is also sent
to Head (CB), Kolkata for information. One set of the application is kept
in the Explosive License file for future reference. Regular follow-up for
earliest receipt of the Permit and Licenses shall be made by the dealing
Executive.
41.5 In case of Radio-active items, application for obtaining the No-Objection
Certificate from Bhabha Atomic Research Centre (BARC) is put up by
the user departments directly and on receipt of the same, the
application for the DGCA Permit along with a copy of the "No-objection
Certificate" is sent to the Service provider for arranging the DGCA
Permit.
41.6 PROCESSING OF DGCA PERMIT & EXPLOSIVE LICENSE:
Immediately after completion of the Techno-Commercial scrutiny when
the purchase proposal is put up, in a parallel action, the application for
DGCA Permit and Explosive License (in the prescribed format provided
by them) should be prepared by Materials Department and sent to the
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Consultant who will arrange for DGCA Permit initially. The original
DGCA Permit on receipt from the concerned authority shall be forwarded
by the consultant to Duliajan which is then forwarded to Kolkata
(Shipping) office. With a copy of the DGCA Permit, the consultant then
will forward the Explosive License application to Chief Controller of
Explosives (CCE) for issue of the Explosive License. The same on receipt
will be sent by the Service provider to Materials Department at Duliajan
who will then forward it to Kolkata (Shipping) office. Copies of the DGCA
permit and Explosive license are sent to the User department for
information and necessary action.
41.7 After import of the explosive items, details of import and dispatch
details to the destination are provided in forms RE-8 & RE-9 to CCE.
42.0 PROCUREMENT OF MEDICINE
42.1 Medical Department shall provide PR for various medicines indicating
the manufacturer's name against each item to Materials Department
covering about 1 year requirement. The requirement shall be certified by
the Drug Purchase Committee.
42.2 On receipt of the PR, Materials Department shall write to the
Manufacturer requesting them to provide preferably 5 (five) but not less
than 3 (three) stockist /distributors' names not only from Tinsukia,
Dibrugarh but may also include stockist /distributors' names from
Sivasagar, Jorhat and beyond, if necessary to generate more
competition.
42.3 The authority / person concerned who have authorized stockist /
distributors' names initially against our request must be the same in
case of any amendment of stockist / distributors' names. However, no
such change shall be allowed after floating the tender. Enquiry should
be sent to the authorized stockist / distributors as suggested by the
manufacturer. A copy of the enquiry should also be sent to the
manufacturer. In the tender documents it is to be categorically
mentioned that the party should forward latest manufacturer's price list
meant for Hospital/ Institutional sale.
42.4 For procurement of medicines only the rate applicable to the Hospital/
Institutional sale shall be considered as per current price list.
42.5 The stockist / distributors who have offered highest discount over the
Hospital rate as stated above shall be recommended for placement of
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order subject to their fulfilment of other terms and conditions of the
NIT.
42.6 Medicines are to be supplied by the supplier as and when required basis
with a shelf life of half the total shelf life period at the time of receipt. The
payment against supplies shall be made as per current price list meant
for Hospital / Institutional sale at the time of delivery considering
discount offered by the supplier.
42.7 A copy of the Purchase Order shall be sent to the manufacturer. They
should also certify that the medicines supplied have been manufactured
by the manufacturer mentioned in the package and the medicines
covered in the supply lot have shelf life as mentioned above.
42.8 Medical Department shall also arrange to check the quality of the
supplied medicines periodically through reputed Laboratories on random
basis to ascertain genuineness and quality of medicines.
43.0 CONTRACT RELATING TO CIVIL WORKS / SERVICES AND HIRING
OF TRANSPORT SERVICES AT FIELD HEADQUARTERS FOR
MAINTENANCE & DAY TO DAY REQUIREMENT
Keeping in view the socio-economic scenario in proximity of Field
Headquarters, OIL has been practicing certain relaxation / dispensation
in case of works and services which can be provided by agencies situated
on regional basis. In view of the above, as a shift to the normal
procedure the under mentioned guideline may be followed :
43.1 PUBLICATION OF NIT:
a) Advertisement on OIL Notice Board and in Local News Papers: The IFB
shall be put on the OIL notice board and attention drawn in one local
vernacular language news paper published from the place where the
award of work will be made, providing information that the details of the
Invitation for Bid (IFB) is available on the Notice Board of OIL, in case of
the following jobs:
i) Works (other than civil) whose estimated cost is below Rs.5 Lakhs;
ii) Hiring of light passenger vehicles (Cars, Sumo/Bolero, Utility
vehicles, Pick-ups) without any financial limit.
iii) Civil works whose estimated cost is below Rs.25 Lakhs.
b) Advertisement in News papers published from the State: IFB may be
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inserted in two newspapers – one in the regional language of the State
(Province) in which the work will be executed and the other in English
circulating in the State (Province) for the following:
i) All works whose estimated cost is between Rs.5 Lakhs and Rs.25
Lakhs.
ii) Civil works whose estimated cost is above Rs.25 Lakhs and below Rs.
1 Crore.
iii) All labour oriented works whose estimated cost is above Rs.5 Lakhs
(upto any value).
iv) Hiring different types of buses, truck, water tankers, crude oil
tankers without any financial limit.
43.2 CLASSIFICATION OF CIVIL CONTRACTORS FOR SMALL VALUE
JOBS:
OIL has been following class wise registered contractors for the civil
engineering related jobs. The class-wise tendering limits and the
amounts of one time security deposit are revised time to time and
accordingly the contractors deposit the one time security deposit to OIL.
Presently, the tendering limits and the one time security deposit
amounts are as follows:
Class of Contractor Maximum amount One time Security
Of Tender value Deposit
A -Class up to Rs. 160 Lakhs Rs. 1,60,000.00
B -Class up to Rs. 80 Lakhs Rs. 64,000.00
C -Class up to Rs. 40 Lakhs Rs. 32,000.00
D -Class up to Rs. 12 Lakhs Rs. 8,600.00
The above classified contractors are exempted from submitting Bid
Security for a tender whether enquiry issued to only registered
contractor or open tender for the value indicated against them.
43.3 MISCELLANEOUS / MAINTENANCE CIVIL JOB:
OIL is maintaining hitherto a list of good number of contractor situated
in proximity of Field Headquarter, Duliajan. The regular requirement of
miscellaneous maintenance job is carried out by allotment of work in
following manner :
i) Once in two years OIL enter into contracts with registered bidder for
different category of work in different zones.
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ii) Through display on the OIL Notice Board, all registered contractors
are given opportunity to offer for category of work and the zone.
iii) These contractors can be awarded work at a time maximum to a
value of Rs. 5 Lakhs.
iv) Out of the contractors, zone and category wise, with whom OIL has
entered into a contract, shall be allotted work by civil engineering
department as and when there is requirement in fair, transparent
and equitable manner.
These contractors are exempted from giving any bid security or
performance security.
43.4 RESERVATIONS OF TENDERS:
i) Job upto Rs.12 Lakhs
The tender for up to Rs. 12 Lakhs shall be resorted on limited
tender basis. The contractors who are registered under category D
shall quote against these tenders.
ii) Job more than Rs. 12 Lakhs and up to Rs. 25 Lakhs
The tender for value more than Rs. 12 Lakhs and up to Rs. 25
Lakhs shall be resorted on limited tender basis. The contractors
who are registered under category A, B, C shall only submit the bid
against these tenders.
iii) In case of i) and ii) above, there shall be tender fee of Rs. 500.00,
Performance guarantee shall be up to 10% of the contract value for
which contractor shall submit a performance security of 2.5% of
contract value at the time of award of contract and remaining 7.5%
shall be deducted from running bill.
iv) The tender beyond Rs. 25 Lakhs up to any value shall be floated as
open tender and shall also be an e-tender. The bid bond shall be
0.5% of the tender value, unless otherwise exempted. Performance
guarantee shall be up to 10% of the contract value for which
contractor shall submit a performance security of 2.5% of contract
value at the time of award of contract and remaining 7.5% shall be
deducted from running bill.
v) In open tender, for the tender above Rs. 25 Lakhs upto Rs. 40
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Lakhs, Class A, B & C, above 40 Lakhs upto 80 Lakhs, Class A & B,
and for above Rs. 80 Lakhs up to Rs. 1 Crore 60 Lakhs, Class A,
shall be exempted from experience criteria and financial criteria.
They shall also be exempted from submission of Bid security as
mentioned in clause 43.2 above.
vi) In case against a tender for a given job, there are more than one L1
bidders, the tender may have provision for tie break. In case this is
not possible the bid can be decided on draw of lots.
44.0 TRANSPORT SERVICE CONTRACTS
44.1 Contracts are finalized for following categories of Transport services:
(i) Light passenger/utility vehicles.
(ii) Heavy & medium passenger vehicles.
(iii) Trucks / Water Tankers.
(iv) Crude Oil Tankers/ Bowsers.
44.2 The requirement of Passenger vehicles, Utility Vehicles, Buses, Trucks,
Pick-up is large in numbers. These requirements are tendered by OIL on
offered rate basis. It is also a CSR obligation on the part of OIL
considering the socio-economic condition in the region. Accordingly, it is
considered that one vehicle in case of passenger vehicle are allocated to
one applicant. However, in case of buses there may be allocation of two
nos. of buses to one bidder. Trucks, water tankers, crude oil tankers are
also tendered on the basis of offered rate.
44.3 The procedure followed in most of the tenders against transport
contracts is similar to other contracts.
44.4 LIGHT PASSENGER VEHICLES, AMBULANCES, AC CARS AT THE
RATES OFFERED BY OIL:
Light passenger vehicles (like Cars, Sumo/Bolero, Utility vehicles,
Pick-ups) & Ambulances shall be hired on one-applicant-one-vehicle
basis at the rates offered by OIL from individuals only without seeking
any financial and experience eligibility criteria.
In case of hiring of light passenger vehicles and Ambulances / AC Cars
etc. on one-applicant-one-vehicle basis; no bid documents shall be
issued and the interested participants should apply in prescribed
application format along with the other requisite documents during the
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application receipt period. NIT, application format, Contract Terms &
Conditions are made available on OIL’s website.
The applications so received shall be examined for its acceptability as
per the provision of NIT. Also, in such cases where the applicants are
more than the requirement, the selection shall be done through Draw of
Lots and the short listed applications shall be scrutinized after Draw of
Lots.
44.4.1 Basic steps involved in processing shall be:
(i) Issue of NIT & application format, Contract Terms & Conditions.
(ii) Receipt of applications in separate counters if number of applicants
are more. Contract Department shall arrange for temporary
application receiving counters.
(iii) Draw of Lots for short listing of applicants. In Draw of Lots,
members from Indenting Department, Finance Department and
Contracts Department shall be present. Applicants’ notice shall be
drawn to attend the Draw of Lots and attending applicants or any
person (public) shall be randomly asked to pick up the number in
Draw of Lots. List of provisionally selected applicants including
waiting list applicants (if necessary) duly signed by company
representatives attending the Draw of Lots shall be displayed in
the Notice Board after the Draw of Lots.
(iv) Scrutiny of short listed applications with respect to application
rejection criteria by indenting department. The scrutiny report to be
vetted by Finance Department wherever necessary.
(v) The unemployed persons from OIL’s E&P area are not required to
submit Bid Security along with the application (only in specified
tenders). However, once short listed vide Draw of Lots they shall be
required to submit the bid security amount.
(vi) All the applicants short-listed vide Draw of Lots are required to
submit additional documents like Affidavits etc. which shall be
further scrutinized jointly by Indenting Department, Finance
Department and Contracts Department.
(vii) Contracts Department to process Tender Committee Resolution
recommending award of contract to the eligible short listed
applicants and place it before the competent authority for approval.
(viii) Issuance of LOA to the approved applicants (contractors).
(ix) Signing of Formal Contract Agreement by the contractors after
submission of Performance Security.
(x) Placement of vehicles at Indenting Department.
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44.5 BUSES (BIG &MINI & AC BUS) AT RATES OFFERED BY OIL
In case of hiring of Buses (Big & Mini & AC Bus), tenders shall be floated
at rates offered by OIL with financial and other eligibility criteria. In case
the number of acceptable bidders exceeds the required numbers, the
selection of bidders shall be done through Draw of Lots amongst the
bidders fulfilling the eligibility criteria.
44.6 READILY AVAILABLE TRUCKS AT RATES OFFERED BY OIL
In case of hiring of Trucks, tender shall be floated at rates offered by OIL
with eligibility criteria (other than financial) given by OIL. In case the
number of acceptable bidders exceeds the required numbers, the
selection of contractors shall be done through Draw of Lots amongst the
bidders fulfilling the eligibility criteria.
44.7 WATER TANKERS (TRANSPORT) AT RATES OFFERED BY OIL
In case of hiring of water Tankers (Transport), tender shall be floated at
rates offered by OIL with eligibility criteria (other than financial) given by
OIL. In case the number of acceptable bidders exceeds the required
numbers, the selection of contractors shall be done through Draw of Lots
amongst the bidders fulfilling the eligibility criteria.
44.8 CRUDE OIL TANKERS / BOWSER AT RATES OFFERED BY OIL
In case of hiring of Crude Oil Tankers/ Bowsers, tender shall be floated at
rates offered by OIL with financial, technical eligibility criteria given by
OIL. In case the number of acceptable bidders exceeds the required
numbers, the selection of contractors shall be done through Draw of Lots
amongst the bidders fulfilling the eligibility criteria.
44.9 PROCEDURE FOR DRAW OF LOTS
In case of tenders where the no. of applicants / bidders are more than the
requirement, selection of short-listed applicants / bidders shall be done
through Draw of Lots.
Notification regarding the Draw of Lots of the subject tender is to be given
in the NIT itself. In Draw of Lots, members from Indenting Department,
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Finance Department and Contracts Department shall be involved. Draw
of Lots shall be conducted by Tombola cages and no. of Tombola cages to
be used shall depend upon the no. of participants in the Draw of Lots.
Attending applicants or any interested public shall be allowed to pick up
the numbers allotted for Draw of Lots against the applicants / bidders.
The list duly signed by company representatives attending the Draw of
Lots and approved by Head-Contracts of selected applicants / bidders
through Draw of Lots shall be displayed in the Notice Board after the
Draw of Lots. Audio & Video recordings of Draw of Lots proceedings shall
be done subject to availability of such systems.
44.10 OFFERED RATES BY OIL BASED ON INTERNAL ESTIMATE
The rates to be offered by OIL to the applicants / bidders for their
acceptance shall be prepared by a committee and approved by
competent authority as per DoP. Such rate will be incorporated in the
tender document for the information of applicant / bidder.
44.11 In case of Hiring Transport Services in for the following categories the
normal tendering procedure shall be followed:
(i) Hiring of cranes
(ii) Hiring of Tractors
(iii) Hiring of Tractor-Trailer units
(iv) Chemical Transportation.
(v) Rig Movement.
(vi) Tubular Transportation.
(vii) Water Tankers (Prod.)
(viii) Any other services related to Transport.
The above provision is based on present practice in OIL. However,
regarding finalizing the award based on the offered rate / quoted rate, in
case of a specific situation the category of the vehicle above may be
shifted vice versa with due reasoning.
45.0 MODIFICATION/AMENDMENT TO THE MANUAL
The Manual may require modification/amendment with the passage of
time due to certain changes in the policy and Company’s business
requirements. In case such request is generated from Works Centre, it
needs a recommendation from Multi-disciplinary Committee and
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approval from Local Management. After the approval from LMC/Head of
Sphere, the request shall be forwarded to Corporate C&P / Policy
Monitoring Cell (Once created). The Corporate C&P Cell shall examine
the necessity of such amendment and if considered essential to amend
the procedure, a proposal shall be moved for approval by CBC which is
the competent authority for approval of Manual. On approval of such
proposal the Corporate C&P cell shall issue an amendment to the
procedure which shall be integral part of the manual and
communicated to all Spheres / Projects of OIL. The same shall be
uploaded on OIL's intranet portal also.
46.0 DEVIATION TO THE MANUAL
In case during processing a procurement case and before floating the
tender, there is a necessity for a deviation to the Manual, a
recommendation must be made by a Tender Committee consisting of
members from C&P, Finance and indentor, wherein, the Tender
Committee shall give complete justification as to why such deviation is
unavoidable. If it is merely a procedural deviation, the same shall be
approved by the LMC/Head of Sphere (Project). And such deviation
should not be considered as precedence for future tenders.
In case of deviation to the Policy itself, the same shall require the
approval of CMD based on the recommendation of the Tender
Committee to be routed through concerned Director and Director
(Finance).
47.0 CLARIFICATION TO THE PROCEDURE
During the process of carrying out business of executing projects and
operations, the provision provided in the procedure may require
elaboration or more clarity. Such explanatory / clarificatory
communication shall be issued by the Corporate C&P department.
Except Corporate C&P, no Sphere / Project or department should issue
clarification.
48.0 CIRCULAR, INSTRUCTION, ADVICES ETC. REGARDING
PROCUREMENT PROCESS
During the course of business process there can be a situation
warranting issue of certain instruction / advice regarding procurement
related matters which may emanate from special requirement,
government guideline etc. Such instruction / circular shall always be
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issued by Corporate C&P for compliance across OIL and this circular
shall be uploaded on OIL's intranet portal.
49.0 NON-APPLICABILITY OF THIS PROCEDURE
The procurement which is financed by international financing
institution like IMF, World Bank, ADB, the procedure of financing
institution shall apply.
In case of exploration under Production Sharing Contract (PSC) where
the provision of this procedure and that of PSC contradicts, to that
extent the provision of PSC shall prevail.
50.0 POST AWARD ACTIVITIES
50.1 ACCEPTANCE OF THE ORDER / CONTRACT:
Once the detailed contract is awarded, the acceptance of the contractor
/ supplier should be obtained followed by signing of agreement.
50.2 The Performance Bank Guarantee shall be obtained within the
stipulated period.
50.3 After above activities, wherever necessary, the Letter of Credit should be
issued as per approved and accepted format of LC so as to give effect to
the contract.
50.4 PRE-DESPATCH INSPECTION:
In case of supply contract, OIL has to organize placement of inspector at
the works of the supplier for inspection of the material and issuance of
release note for despatch. This activity should be done promptly on
receipt of intimation from the supplier regarding readiness of the
material and gives notice of inspection.
50.5 TRANSIT INSURANCE:
i) All supplies for equipment / materials are to be insured by OIL for
transit risk, unless specified otherwise in the contract, to cover
damages during the transportation.
ii) Any damage during the transportation shall be notified to the under-
writers as well as transporting agency for further necessary action in
order to recover the transit damage.
iii) In order to cover the insurance of the goods dispatched / shipped,
vendor are required to furnish the dispatch / shipping details to the
insurance company with complete dispatch details along with policy
no. etc.
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50.6 Wherever required, necessary clearance of the certificates like EC from
DGH needs to be obtained timely, so as to provide same to the
contractor.
50.7 In case of import cases, the necessary clearances from Transchart need
to be obtained, wherever necessary in accordance with the guidelines
issued from Govt of India expeditiously so as to communicate decision
to the supplier regarding terms of shipment (FOB, C&F or CIF).
The activities described in 41.4, 41.5, 50.6 & 50.7 shall be co-ordinated
by Corporate C&P at Noida. However, necessary details like purchase
order etc. shall be provided by the C&P department at the respective
Sphere / Project.
50.8 Custom clearance of imported goods, payment of custom duty and
inland transportation of the goods to respective spheres / projects.
These activities are carried out by Calcutta Shipping Office.
50.9 Retirement of shipping documents from bank for imported items for
custom clearance and payment of customs duty is organized by
Calcutta Shipping Department.
50.10 In case of indigenous supply, where documents are submitted through
bank by the supplier, the respective C&P department co-ordinates with
Finance for retirement of documents form bank.
50.11 INSURANCE CLAIM FOR DAMAGES:
i) In case of damage during the shipment for imported consignment
which is noticed at the time of inspection after receipt of material,
the Calcutta Shipping Office shall lodge the claim with the
insurance company. However, as per provision of the contract, if
necessary C&P department who have placed the order shall take up
the matter with supplier for repair / replacement.
ii) In case of indigenous supply, if any damage is noticed at the time of
inspection after receipt of material, the same shall promptly be
notified to the insurance company by respective C&P department so
as to protect the interest of the company.
50.12 VARIATION IN QUANTITY:
In case of supply contract, if there is any variation in quantity based on
the item rate provided in the purchase order, necessary amendment
shall be issued timely to the supplier in respect of price and delivery. If
required, the Letter of Credit may be amended accordingly. This will be
done with approval of Competent Authority in accordance with the
DOP”.
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50.13 DEVIATION:
In case of any deviation, especially technical, which are accepted, the
indentor shall work out the financial implication to be recovered from
the supplier and adequacy thereof.
50.14 In case any modification to the items/equipment ordered is made by
OIL, the supplier may be asked to work out the financial effects of the
same. After certification by the user, change order to the contract may
be issued. This will be done with approval of Competent Authority in
accordance with the DOP”
50.15 Modification in the scope of work / specification in case of works /
service contracts: The engineer in charge, supervising the contract
may advise contractor / service provider for any modification which
includes technical specification, quantity, scope of work, extra work,
substituted item etc. Such instruction to the contractor shall be given in
writing. The contractor / service provider is required to submit detailed
work plan, estimated cost and time required. Such submission shall be
examined and analysed on priority and with approval of the competent
authority in accordance with the DoP; amendment to the contract shall
be issued.
The above actions are required on priority as after lapse of considerable
time it becomes complex to analyse the case and arrive at a decision.
50.16 In case there is a delay in supply of goods and services, except in case
of force majeure and reasons attributable to buyer, LD shall be levied as
per provision of the contract. In case the supplier does not reduce
proportionately the invoice value towards applicable LD as per the
provision of the contract, OIL has right to recover the same, from
payment due to the supplier.
50.17 Date of delivery / completion date shall be date of bill of lading, date of
RR / LR, date of successful commissioning and handing over as
provided in the contract. Under a supply contract, if the portion of
supply completed in all respect which can be used for commercial
operation shall not be considered for applying LD, if delivered within
contractual delivery period.
50.18 The LD shall not be leviable in case of force majeure and OIL’s default in
performance of its obligation in terms of contract. It is often experienced
that many a times owner accepts its default on its own account for
including but not limited to non-supply of issue material, non-
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availability of front, delay in providing drawing etc. leading to time
extension without LD. Since applicability of LD clause is a condition on
which bids were invited a detailed analysis shall be made to arrive at
default on part of the contractor and at the same time default on part of
the owner before arriving at the decision of levying LD or otherwise.
In case of works, where company (OIL) takes over certain facilities for
the envisaged objectives, which can be commissioned and can function
independently irrespective of the availability of balance work of the
project, OIL may issue part completion certificate by taking over such
facilities without imposing LD. Where such facilities cannot be
commissioned and cannot function independently, LD in that event
shall be levied on full value of the contract.
50.19 While working out the LD in case of supply contract, the contract value
is to be considered on FOB / CIF / FOR / Ex-works / FOT based on the
contract excluding statutory taxes, duties, levies etc.
50.20 PRICE REDUCTION SCHEDULE / LIQUIDATED DAMAGES (LD):
If the contractor/vendor fails to deliver any or all materials or
performance of work or service within the time period specified in the
order / contract, OIL, without prejudice to any other remedy, deduct LD
calculated as under:
i) Price reduction shall be applicable at the rate @ 0.5% per week or
on part thereof of the value of the goods/contract value in respect
of which default in delivery/ mobilization time / completion time
takes place subject to a maximum of 7.5 %.
ii) In supply contract, the portion of supply completed in all respect
which can be used for commercial operation shall not be
considered for applying LD if delivered within contractual delivery
period. The remaining supply, which has been completed beyond
the contractual period, shall attract LD @ 0.5% per week or part
thereof of the value of the goods/contract value in respect of which
default in delivery/mobilization time / completion time takes place
subject to a maximum of 7.5 %.
iii) LD shall be applicable in the same manner where individual orders
have been released against annual rate contract.
50.21 TIME EXTENSION:
During the execution of the contract, if delivery / work is not likely to be
completed as per original schedule, the time of delivery of completion
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should be suitably extended without prejudice to right of levying price
reduction schedule / liquidated damages. This action is necessary so as
to keep the contract in continuation till the completion of the delivery.
The final time extension to the contract is to be given after analyzing all
aspects of delay, provision of levying LD at this stage, the default on part
of contractor as well as on the part of the owner needs to be critically
analysed to arrive at the decision.
50.22 APPROVAL OF DRAWING:
In case contract provides provision for approval of drawing submitted by
the manufacturer / contractor, OIL has to make arrangement of
approval / commenting of such drawing in a time bound manner. Any
delay in taking action in relation to approval of drawing shall be solely
attributable to OIL and may delay the supply of equipment and
completion of the job.
50.23 POST DELIVERY INSPECTION:
On receipt of material timely inspection is to be organized so as to know
the acceptability of the material or damages if any. In some of the cases,
payment is linked with inspection and acceptance of material on receipt
by OIL. Since this is linked with the payment of the contractor, timely
inspection is more essential to maintain transparency for payment to the
contractor.
50.24 REPLACEMENT SUPPLY:
Once the discrepancy report with respect to short supply, inferior quality
of material, defective and damaged material is prepared, immediately the
matter should be taken up with the supplier to supply replacement of
such items free of cost as per the terms of the contract.
50.25 MEASUREMENT OF THE WORK:
The engineer in charge from OIL, for a given contract shall be
responsible for the measurement of the work done. Such measurement
shall be jointly measured and signed along with the representative of the
contractor.
This measurement shall be used by the contractor for raising progressive
bills for the job already completed.
50.26 CLOSURE OF CONTRACT:
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Once the supply and work is completed, the purchase order / contract
needs to be closed as per the provision of the contract. At this stage it is
to be settled and declared by both the parties that there is no
outstanding issue in relation to the contract.
The following may be ascertained as per the provision of the contract:
i) The supply has been made as per the specification and scope as
prescribed in the purchase order.
ii) In case of works / supply contract, the job has been performed at
work site as per the provision in the contract.
iii) The supply / work has been completed within the contractual
delivery / completion schedule. In case there is a delay due to
certain reason, the case has been properly analyzed and provision
of the LD has been applied.
iv) Payments in accordance with the provision of purchase order /
contract based on necessary inspections / joint measurements have
been made and any or all bank guarantees for performance /
security to cover the guarantee / warranty as provided for in the
purchase orders / contract have all been obtained from the vendor
/ contractor.
v) In case of free-issue material, all material issued have been
reconciled and any excess material issued has been returned to
OIL. Any excess consumption of the material or scrap generation
has been duly accounted for and recovery if any has been made
from the contractor.
vi) In case of shortage and damages observed in the material received,
either necessary replacement has been obtained from the contractor
or claim has been lodged for replacement as per the provision of the
contract. In case of works contract, for any damages or defects
noticed in the works executed by the contractor, necessary
rectification has been carried out and recovery if any made in that
regard from the contractor.
vii) In relation to any extra work, addition deletion, short supply,
necessary analysis has been done and either extra payment or
recovery has been affected for as per provision of the contract.
50.27 RECOMMENDATION FOR CLOSURE OF THE CONTRACT:
In case of purely a supply contract for goods, the purchase order can be
closed once the supply is affected and payment released as per the
provision of the contract. However, if there are issues related to
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applicability of LD, claim etc., this may require a recommendation of a
committee consisting of C&P, Finance and user department for approval
by competent authority.
In case of contracts which are little complex considering extra work,
delays, extra consumption of material, recoveries, claims etc. a
committee recommendation consisting of members from C&P, Finance
and user department will be necessary for approval by competent
authority.
The competent authority shall generally be the one who approved the
award. However, the cases which were awarded with the approval of
Director /CBC / Board of Directors, LMC may approve such cases.
50.28 ACCEPTANCE OF MATERIAL IN DEVIATION TO SPECIFIED
SPECIFICATIONS:
Materials with deviation from order specifications shall not be accepted.
However, in case of chemicals, due to urgent requirement of operations,
the material below the specified specification may also be accepted with
necessary recovery. This requires approval of the Head of the user
department. This aspect should be considered while evaluating the
performance of the supplier for future tenders.
END OF THE DOCUMENT