COMMERCIAL CORRIGENDUM NO. 2 - gailebank.gail.co.in · COMMERCIAL CORRIGENDUM NO. 2 TO ... attached...

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Dated: 25.02.2008 COMMERCIAL CORRIGENDUM NO. 2

TO BIDDING DOCUMENT

BIDDING DOCUMENT NO. : SST/6921-060-QB-MR-9010/1001

SCOPE OF WORK

: SUPPLY OF CARBON STEEL BARE / COATING / COATED LINE PIPES FOR VIJAIPUR-DADRI-BAWANA PIPELINE PROJECT OF GAIL (INDIA) LIMITED

The terms and conditions of the Bidding Document stands modified to the extent indicated below and all other terms and conditions of the Bidding Document remains unaltered : SL. No.

CLAUSE NO. SECTION SUBJECT ADDITIONS / DELETIONS / MODIFICATION

1. - RFQ Enclosures Cut-out Slip for Power of Attorney (Part VI of “Document Comprising Bid”) is attached as Appendix-1 to Commercial Corrigendum No. 2. This cut-out slip is to be pasted on the envelope containing Power of Attorney to be submitted by the bidder. Being e-tender, cut-out slips for unpriced bid Part-I and priced bid Part-II shall not be applicable.

2. 5 (ii) I / IFB Leader of Consortium “One of the members” in the beginning of this sub-clause is replaced by “A member who is a line pipe manufacturer and meets the requirement for supply of line pipe as per BQC only”.

3. 3.3.1 II / ITB Leader of Consortium 2nd line of this sub-clause “The consortium member ……… coating Contractor” stands deleted.

4. 3.3.2 II / ITB Leader of Consortium “One of the members” in the beginning of this sub-clause is replaced by “A member who is a line pipe manufacturer and meets the requirement for supply of line pipe as per BQC only.”

5. 10.7 (New clause)

II/ITB Documents Comprising Bid

New sub-clause 10.7 is added as follows: 10.7 Envelope VI : Superscribing “Power of Attorney” Part VI in physical terms. 10.7.1 Part-VI shall contain original Power of Attorney as explained in clause

10.2.1.1.1 (c) & (s).

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6. 11.8.1.1 II / ITB Option 1 : Supply of Bare Line Pipes

“and CIF – Kandla Port” stands deleted from 2nd Line of this para.

7. 11.8.1.3 II / ITB Option 1 : Supply of Bare Line Pipes

“/CIF” is deleted from 3rd & 4th line of this clause.

8. 11.8.3.1 II / ITB If the coated pipes are imported

Following is added: All type of insurance including but not limited to marine, transit, storage etc., shall be in bidder’s scope.

“Indemnity Bond shall be valid upto receipt and acceptance of Coated Pipes at Warehouse” appearing in last line of 2nd para is replaced with “Indemnity Bond shall be valid till handing over of last pipe to laying contractor”.

9. 11.8.3.3 II / ITB If the Foreign Bidder opts to import the bare Line Pipe and Coat in India.

Following is added: All type of insurance including but not limited to marine, transit, storage etc., shall be in bidder’s scope.

“Indemnity Bond shall be valid upto receipt and acceptance of Coated Pipes at Warehouse” appearing in last line of 2nd para is replaced with “Indemnity Bond shall be valid till handing over of last pipe to laying contractor”.

10. 11.8.3.4.3 II / ITB Prices of Coating charges “Bidder to indicate separately prices of coating works under Column 9 of Price Schedule” Is added.

11. 12.2 II / ITB - Read “US$/EURO/INR” in place of “US$/EURO”.

12. 28.1 II / ITB Concurrent Commitment (For Bare Line Pipe)

Following is added in the Clause: “The Capacity assed by the capacity assessment Criteria for Bare Line Pipe shall be reduced to the extent of Concurrent Commitment for the period from September’08 to March’09 for the purpose of award.” Refer enclosed Format F-9 (Revised) enclosed as Appendix-3 to Commercial Corrigendum No. 2.

13. 33 II / ITB and Corrigendum No. 1

Evaluation and Comparison of Bid

Revised Evaluation and Comparison of Bid (referred under Sr.No.32 of Corrigendum No.1) is enclosed as Appendix-2 to Commercial Corrigendum No. 2.

14. 44.4 II / ITB & Attachment-IV Integrity Pact Integrity Pact is revised and enclosed as per Appendix-4 of Commercial Corrigendum No. 2.

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15. 4.1.1 III-B / SCC (Goods) & Commercial Corrigendum

No. 1

Month wise Delivery Schedule – Option 1

Indian Bidder

New sub-clause 4.1.1.3 is added as follows: 4.1.1.3 : In case of award of order for part quantity of item, the item-wise monthly quantity shall be considered on pro-rata basis.

16. 4.1.1.2 & S.No.47 of

Corrigendum-1

III-B / SCC (Goods) “Plus 15 days” is deleted from 2nd line. “The Line pipe Supplier shall also send a copy of IRN to coating contractor.” is added in the 2nd para of this clause.


No. 1


Foreign Bidder



No. 1



19. 4.1.3.2 III-B / SCC (Goods) Read “of balance” in place of “or balance” in 4th line.

20. 10.1 III-B / SCC (Goods) “or EIL” is added after the “third party” in 2nd line.

21. 24.1 III-B / SCC (Goods) Performance Evaluation “as per enclosed Vendor Performance Evaluation Procedure attached in Attachment-V” is added in the end of 2nd line.

22. - New Attachment V Performance Evaluation New “Attachment-V” enclosed as Appendix-5 to Commercial Corrigendum No. 2

incorporating “Vendor Performance Evaluation Procedure” is added in the Bidding Document..

23. 1.1.2.2 III-C / Payment Terms & Mode of Payment (For Option 1 & 3)

Terms of Payment (Foreign Bidders)

Refer Sr. No. 59 of Corrigendum-1. Read Clause No. “1.1.2.2” instead of “1.1.2.4”

24. 1.2 III-C / Payment Terms Terms of Payment for Option 3 for Coated Line

Pipes

New Sub-clause No. 1.2.5 is added as follows In case of Foreign Bidder quoting in Indian Rupees for scope of services like Port handling, customs clearance, inland transportation, dumpsite maintenance etc., to be provided by their Indian sub-supplier, payment to Indian sub-supplier can be made against their invoices subject to (i) the sub-supplier is approved by GAIL/EIL, (ii) the invoices are complete as per Bidding Document requirement for Cenvatability to GAIL and (iii) the invoices are certified by Foreign bidder instructing for making payment to their Indian sub-supplier.

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25. 1.2.2.1

1.2.3.1

III-C / Payment Terms

Terms of Payment for Option 3 for Coated Line

Pipes

“Indemnity Bond shall be valid upto receipt and acceptance of Coated Pipes at Warehouse” appearing in last line of 3rd para is replaced with “Indemnity Bond shall be valid till handing over of last pipe to laying contractor”.

26. 1.2.2 & 1.2.3

III-C / Payment Terms

Terms of Payment for Option 3 for Coated Line

Pipes

Terms of Payment for Foreign Bidder covered under these two sub-clauses are revised as per enclosed Appendix-6.

27. 1.2.4(h) of S.No.55 of

Corrigendum-1

III-C / Payment Terms Terms of Payment for Option 3 for Coated Line

Pipes

Sub-clause No. 1.2.4 (h) covered in Corrigendum No. 1 to Bidding Document is revised as follows:

Pursuant to clause (d) and (e) above, payment to the Foreign bidder under two separate contracts shall be as per sub-clause 1.2.4.1 enclosed as Appendix-6 to Commercial Corrigendum No. 2.

28. - III-E and IV-D Price Schedules Further to Sr. No. 61 of Corrigendum No. 1, Preamble to Price schedules (Option 1, Option 2 & Option 3) are revised as attached as Appendix-8 to Commercial Corrigendum No. 2.

29. 2.2 IV-B / SCC (Works) Scope of Work “All charges including ……… Employer’s account” appearing from 2nd to 4th line of this Clause (deleted in Corrigendum – 1 under Sr. No. 64) is now reinstated.

Further the word “Employer’s” appearing in the above clause is replaced by “Contractor’s”

30. 2.5 (New clause)

IV-B / SCC (Works) Scope of Work New sub-clause 2.5 is added as follows: 2.5: Within 15 days of FOA, the Coating Contractor shall submit the total

mobilization plan and evacuation plan for pipe under his scope. The Coating Contractor shall send a daily report of deployment of the trailers to GAIL/EIL.

31. 3.0 IV-B / SCC (Works) Delivery Schedule for Coating of Bare Line Pipe

for Option 2.

Read the new sub-clause no. as “3.4” instead of 3.5 in Sr. No. 68 of Corrigendum No.1

32. 3.1 IV- B / SCC (Works) Delivery Schedule “available stock” is added after “line pipe manufacturer” in 2nd line and 5th line of 2nd

para of this clause.

33. 15.1 IV-B / SCC Works Performance Evaluation “Vendor Performance Evaluation Procedure (Appendix-5 to Commercial Corrigendum No. 2) in” is added after “as per enclosed” in 2nd line.

34. 1.1.1.1 (v) IV-C / Payment Terms Terms of Payment for Option 2

“valid till handing over of last pipe to Laying Contractor” is added at the end of the line of this sub-clause.

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35. - 03 SY1 FBCI TO

03 SY7 FBCI

Price Schedule of Imported Bare Pipes with

Coating at their Plant relocated in India

(Foreign) (under Option 3)

The heading against Column 13 shall be read as “Import Duty amount considered on CIF value at Column 12 (instead of Column 11) and included in Column 4.”

36. S.No. 37 of Corrigendum-1

Attachment-I Form & Formats (Coating Capability

Certification)

Format “F14” “Line Pipe Coating Capability Certification” (Appendix-5) attached in Corrigendum No.1 is revised as attached as Appendix-7 to Commercial Corrigendum No. 2.

37. 3 Attachment-IV (PMS/EIL/2)

For CFR/CIF Contracts Following new clause 3.6 is added: “In the event of non existence of the Conference Line at the time of delivery, the shipment through alternate shipping Company shall be considered by GAIL/EIL.”

38. 7.0 Attachment-IV (PMS/EIL/1) &

Commercial Corrigendum No. 1

Despatch through Approved Transporters

Clause No. 7.0 of Packing, Marking, Shipping and Documentation specification for Indigenous Materials (PMS/EIL/1) stands deleted. Also the list of approved transporters (Appendix-15) attached in Corrigendum- No.1 stands withdrawn.

Further following is added: “All materials must be dispatched through any bank approved transporter”.

_______________________________ (STAMP & SIGNATURE OF BIDDER)

BIDDING DOCUMENT NO.: SST/6921-060-QB-MR-9010/1001 PROJECT : VDBPL

INDEX TO APPENDIX TO COMMERCIAL CORRIGENDUM NO. 2

APPENDIX -1 - CUT OUT SLIP FOR PART-VI

APPENDIX-2 - REVISED EVALUATION AND COMPARISON OF BID

APPENDIX-3 : REVISED FORMAT F-9 FOR CONCURRENT COMMITMENT

APPENDIX-4 - REVISED INTEGRITY PACT

APPENDIX-5 - ATTACHMENT-V FOR VENDOR PERFORMANCE EVALUATION PROCEDURE

APPENDIX-6 - REVISED TERMS OF PAYMENT TO FOREIGN BIDDER FOR OPTION-3

APPENDIX-7 - REVISED FORMAT F-14 FOR COATING CAPABILITY CERTIFICATION

APPENDIX-8 - REVISED PREAMBLES TO PRICE SCHEDULE FOR OPTION-1,2 AND 3 (INCLUDED IN PRICED PORTION)

APPENDIX-1 to C.C.No.2

DO NOT OPEN - THIS IS A QUOTATION

Client : GAIL (INDIA) LIMITED Project : Vijaipur-Dadri-Bawana Pipeline Project RFQ No. : SST/6921-060-QB-MR-9010/1001 Item : Carbon Steel Bare / Coating / Coated Line Pipes

Due Date& Time : Upto 1200 Hrs. (IST) on 26.02.2008 From : To : The Project. Manager

GAIL (India) Limited 16, Bhikaiji Cama Place, R.K. Puram New Delhi – 110066

(To be pasted on the physical envelope containing Power of Attorney) (Part VI)

C:\Documents and Settings\Administrator\Desktop\corr-2\BEC-VDBPL-25-02-2008.doc

APPENDIX-2 TO CC NO. 2 33.0 EVALUATION AND COMPARISON OF BIDS

33.1 Evaluation and comparison of bids shall be done using Optimization Technique (Mathematical Model) to work out the ordering on overall lowest cost to Owner, utilizing maximum capacity taking following into consideration:

i) Bidder’s Qualification

ii) Bidder’s capacity

iii) Evaluated Prices for all the three options

iv) Comparison of prices for option-3 with combination of prices for Option-1 and Option-2

v) Clubbing of items for the purpose of evaluation and award.

Optimization of price for placement of order/award may result in situation where bare line pipe from one source (under Option-1) is supplied to various coating Contractors (under Option-2). Also, it may result into award of coating work/placement of order for coated pipes pertaining to an individual storage yard to more than one bidder.

33.1.1 Bidder’s Qualification

Qualification of Bidder for supply of bare line pipe, coating and coated pipes shall be established based on criteria specified in the IFB. Quoted price for those items for which bidder gets qualified shall be taken up for price bid evaluation.

33.1.2 Bidder’s Capacity

Bidder shall be considered for quantity of pipe manufactured from different type of processes subject to maximum assessed capacity of each mill and upto maximum quantity quoted from respective mill as per Format-F15. The assessed capacity shall be calculated based on data furnished by the bidder in Format-F15. The assessed capacity in Tons/Day shall be converted to assessed capacity in Km/day, considering weight of pipes as per corresponding wall thickness as indicated under API 5L Specification.

In case of bidder quoting for Option 2, the bidder shall be considered for the quantity offered from each Coating Plant as per Format F15. The assessed capacity in Km/Day shall be calculated based on data furnished by the bidder in Format-E.

For arriving at the total assessed capacity, following shall be considered:

i) For bare pipes, coating & coated pipes, the total delivery requirement as specified in the Delivery Schedule.


Accordingly, following shall be considered as number of production days for supply of bare pipeline/coating/supply of coated pipes for Group-A (48” NB dia).

Item NO. Total Qty. (KM) Total Qty. (MT) Production days

(Nos.)

A.i 259.50 1,34,615 212

A.ii 132.20 80,902 182

A.iii & Aiv 116.90 86,090 182

A.v 1.80 1,429 30

ii) The capacity on per day basis of the bidders established based on capacity

criteria specified under IFB. iii) Based on (i) & (ii) above, bidder total capacity as per delivery requirement shall

be assessed. iv) Bidder’s total capacity for bare linepipe as assessed above shall be reduced by

their concurrent commitments during the period Sept.,2008 to March, 2009. v) Based on available capacity worked out at para iii) & iv) above, the capacity

constraint i.e. the maximum quantity (KM) of bare pipe/Coating Work/coated pipe that can be ordered on a bidder shall be determined.

In case the capacity of seleted Bidder falls short upto 5% of total /balance item quantity of a particular item, then his capacity will be enhanced (upto 5%) to consider him for placement of order for that item.

33.1.3 Evaluated Prices for different options

GAIL/EIL desire to have coated linepipe at various storage yards. Bidder can manufacture the bare pipe, carryout the coating and supply the coated pipe as Alternative-1. However, in case a bidder choose to supply the bare line pipe only or carry out only the coating work only, the same is also permitted under Alternative-2.

The evaluation shall be done on the basis of item wise landed cost of coated pipes at Warehouse locations including arrangement & maintenance of storage yards as specified in MR. Landed cost shall be arrived at with following two alternatives:

33.1.3.1 Alternative-1 (For Coated Pipes under Option-3)

33.1.3.1.1 Evaluated price shall be derived by taking the following into account.


a) Indian Bidder:

Unit Price Ex-warehouse all inclusive as quoted by the Bidder under column 4 of Price Schedule.

b) Foreign Bidder:

Unit Price Ex-warehouse all inclusive (excluding Custom Duty) as quoted by the Bidder under Column 4 of Price Schedule + Custom Duty (based on Project rate or merit rate which ever is lower on bid due date) on (CIF value specified by the Bidders under column 6 of Price Schedule + landing charges). Landing charges shall be considered as 1% of CIF value.

33.1.3.2 Alternative-2 (with combination of Bare Pipe under Option-1 and Coating of Pipes under Option-2)

33.1.3.2.1 Bare Pipe (Option-1)

The evaluated price shall be derived by taking the following into account:

a) Indian Bidder: i) Ex-works price including Packing and Forwarding as quoted under

Column 4 of Price Schedule. ii) Excise Duty quoted under Column 6 of Price Schedule. iii) Sales Tax/VAT quoted under Column 7 of Price schedule. CST without concessional form shall be considered in case the coater and bare line pipe manufacturer are in different states and VAT without concessional form shall be considered in case the coater and bare line pipe manufacturer are in same state.

b) Foreign Bidder The evaluated price on landed cost at Kandla Port taking into account: i) CFR Price quoted under Column 6 of Price Schedule. ii) Marine insurance @1% of FOB price under column 4 of Price

Schedule.


iii) Prevailing rate of Customs Duties (Project/Merit Rate whichever is lower on bid due date) on (CIF value specified by the bidder under Column 8 of Price Schedule + landing charges). Landing charges shall be considered as 1% of CIF value.

33.1.3.3 Coating Work (Option-2)

Evaluated Prices shall be derived at by taking following into account:

Ex-warehouse price all inclusive quoted by the Bidders under Column 4 of Price Schedule.

33.1.3.4 Under this Alternative, evaluation of bare line pipe (Option-1) from various sources and coating work (Option-2) (with corresponding source of supply of bare line pipe) for all storage yard shall be done together with Mathematical Model to determine the lowest combination.

As an illustration for supply of coated pipes at a particular storage yard, under Alternative-1, there could be following combinations:

Combination – 1 :

Supply of bare pipe at L2 price from a particular source say PS-1 + coating of corresponding pipes (supplied from source PS-1) at L1 price.

Combination – 2:

Supply of bare pipe at L1 price from other source say PS-2 + coating of corresponding pipe (supplied from source PS-2) at L1 price.

In case total price under Combination-1 above is lower than total price under Combination-2, the Combination-1 will be considered for award.

33.1.4 Comparison of prices for option-3 with combination of prices for Option-1 and Option-2

Item-wise comparison shall be made between the lowest evaluated prices for each item under Alternative-I and Alternative-2 above (combined evaluated price with Option-1 and Option-2) and whichever alternative is lower for a particular item, shall be considered for ordering.

In case no bid is received/qualified for any one of three Options, then above comparison shall not be applicable.


33.1.5 Clubbing of items for the purpose of evaluation and award.

Prices of following items shall be clubbed together for the purpose of evaluation and ordering in line with Clause 12 & 13 of MR:

i) Item Nos. Biii, Biv and Bv. ii) Item Nos. Civ, Cv and Cvi.

33.2 Matching of Prices

33.2.1 In case due to reasons like capacity constraints, quoted scope of work, limitations of the bidders or any other reasons, if full quantity of any item can not be awarded to selected L1 Bidder, the L2/L3 and so on bidders shall be asked to match their evaluated price with the evaluated price of the selected L1 bidder, for placement of order on L2, L3 and so on bidders, limited to their assessed capacities. The bidders who match the evaluated price of selected L1 bidder will be considered for award based on the original ranking.

33.2.2 In case the L2/L3 and so on bidders do not match their prices as mentioned above or some quantity is left out after matching the prices as above, then all techno-commercially acceptable bidders (whose capacity is available) will be asked to offer their best reduced prices, which amount to limited tendering amongst the pre-qualified bidders and order for the balance quantity shall be awarded as per process given in clause No. 33.2.1 above.

33.2.3 In case order can not be placed for full requirement even after following the above process, fresh tender shall be floated for quantities not ordered.

33.2.4 While working out the item-wise landed cost for supplies from Foreign bidder under Option-1 (to compare with the landed cost of Indian Bidders for purpose of matching of prices), following shall also be added in the evaluated price determined under para 33.1.3.2.1 (b) above (since these are not covered in the scope of Foreign Bidder under Option-1):

i) Landing charges @ 1% on CIF

33.2.5 While working out the item wise evaluated price for Coating Work under Option 2, with supplies of bare pipes from Foreign bidder, (to compare with evaluated price of coating work with supplies of bare pipes from Indian bidders), following shall be deducted from the evaluated prices determined under para 33.1.3.3 above:

i) Landing charges of bare pipes @ 1% of CIF.


33.3 Placement of Orders

Based on above, order shall be placed/work shall be awarded with any of the following Options:

i) Supply of bare pipes

ii) Coating work

iii) Supply of coated pipes

iv) Combination of bare pipe/coating work/coated pipe

33.4 General

33.4.1 The quantity for ordering of individual item may be divided on more than one bidder. As such Bidder’s quoted price for an item shall be valid for part quantity also.

33.4.2 Bidder may quote for supply of bare and coated pipes (Option 1 & 3) manufactured by any one Process or different Processes. However, bidder shall quote only one price for an item, irrespective of Process of manufacturing.

33.4.3 In case bidder opts to quote pipes (Option 1 & 3) manufactured by different Processes of manufacturing for an item, bidder shall specify quantity offered for each type of Processes of manufacturing and the Mill(s) from where the same are offered, as per Format F15.

33.4.4 Purchase preference to Central Public Sector Undertaking/Enterprises as per Government of India guidelines in vogue at the time of price bid opening shall be considered for evaluation of the price bids.

APPENDIX-3 TO CC NO. 2

BIDDING DOCUMENT NO.: SST/6921-060-QB-MR-9010/1001 PROJECT : VDBPL

F-9 PRESENT COMMITMENTS OF THE BIDDER FOR MANUFACTURE OF LINEPIPE

SR. NO.

CLIENT/ PROJECT

TYPE OF PIPE LSAW/

HSAW/ERW

DIA X THK X LENGTH OF

LINEPIPE

TONNAGE DATE OF COMMENCEMENT

OF WORK

SCHEDULE COMPLETION

PERIOD

COMPLETED LINEPIPE

(TONNAGE)

EXPECTED COMPLETION

FROM 01.09.08 TO

31.03.09 (TONNAGE)

REMARKS

Note: This list must be a full list of all type of works in hand.

SEAL AND SIGNATURE OF BIDDER

Appendix – 4 to CC NO 2

ATTACHMENT

INTEGRITY PACT

INTEGRITY PACT INTRODUCTION: GAIL as one of its endeavour to maintain and foster most ethical and corruption free business environment, have decided to adopt the Integrity Pact, a tool developed by the Transparency International, to ensure that all activities and transactions between the Company (GAIL) and its Counterparties (Bidders, Contractors, Vendors, Suppliers, Service Providers/Consultants etc.) are handled in a fair and transparent manner, completely free of corruption. Accordingly, an MOU on Integrity Pact has been signed on 23.07.2007 by GAIL with Transparency International India. Considering the above, the details mentioned at attached Annexure-1 are applicable as stated in Instruction to Bidders of Bid Document in addition to the existing stipulation regarding Corrupt and Fraudulent Practices. The attached copy of the Integrity Pact at Annexure- 2 shall be included in the Bid submitted by the bidder (to be executed by the bidder for all tenders of value Rs. 1 (One) crore and above). In case a bidder does not sign the Integrity Pact, his bid shall be liable for rejection.

ANNEXURE-1 Bidder is required to sign the Integrity Pact with GAIL as per format & terms and conditions enclosed with tender. In case a bidder does not sign the Integrity Pact, his bid shall be liable for rejection. I COMMITMENTS AND OBLIGATIONS OF THE “COUNTERPARTY”

a) The Counterparty, directly or indirectly (through agent, consultant, advisor, etc.), shall not pay any bribe/ influence or give undue/ unlawful benefit to anyone to gain undue advantage in dealing with GAIL.

b) The Counterparty will not engage in collusion of any kind including price fixation etc. with other Counterparts.

c) The counterparty will not pass GAIL’s confidential information to any third party unless specifically authorized by GAIL in writing.

d) The Counterparties shall promote and observe best ethical practices within their respective organizations.

e) The Counterparty shall inform the Independent External Monitor. i) If it received any demand, directly or indirectly, for a bribe/ favour or any illegal gratification/

payment / benefit; ii) If it comes to know of any unethical or illegal payment / benefit; iii) If it makes any payment to any GAIL associate.

f) The Counterparty shall not make any false or misleading allegations against GAIL or its associates. II VIOLATIONS & CONSEQUENCES:

a) If a Counterparty commits a violation of its Commitments and Obligations under the Integrity Pact Programme during bidding process, their entire Earnest Money Deposit/ Bid Security, would be forfeited and in addition, they may be blacklisted from the GAIL business in future.

b) In case of violation of the Integrity pact by Counterparty after award of the Contract, GAIL shall be entitled to terminate the Contract. GAIL would forfeit the security deposits, encash the bank guarantee (s) and other payments payable to Counterparty in such cases,

c) Subject to satisfaction of the Independent External Monitor, GAIL may ban/ blacklist/ put on holiday and exclude the Counterparty from future dealings until GAIL is satisfied that the Counterparty shall not commit any such violation in future.

d) In addition to above, GAIL reserves its right to initiate criminal proceedings against the violating Counterparty, if the allegations by Counterparty are found frivolous, untrue and misleading and may also impose exemplary cost for the same.

e) The Counterparty will be entitled to claim as determined by the Independent External Monitor, if the above (d) is found incorrect.

INDEPENDENT EXTRNAL MONITORS (IEMS)

The following three Independent External Monitors (IEMs) have been appointed by GAIL, in terms of Integrity Pact(IP) which forms part of GAIL Tenders / Contracts.

i) Dr. A.K. Kundra,

ii) Shri S.C. Tripathi

iii) Shri U. Sundarajan

This panel is authorised to examine / consider all references made to it under this tender. The bidder(s) , in case of any dispute(s) / complaint(s) pertaining to this tender may raise the issue either with the designated tender issuing officer in GAIL or directly with the IEMs on the panel c/o Chief Vigilance Officer, GAIL ( India) Limited, GAIL Bhawan, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi – 110066.

ANNEXURE-2

INTEGRITY PACT

(To be executed on plain paper and applicable to all tenders of the value of Rs. one crore and above)

Between GAIL (India) Limited, a Government of India Public Sector, (here-in-after referred to as "Principal "). AND

……………………… ...................................………………… (here-in-after referred to as "The Bidder/Contractor").

(Principal and the Bidder/Contractor are here-in-after are referred to individually as "Party" or collectively as "Parties").

PREAMBLE The Principal intends to award under laid down organizational procedures, contract/s for ………………………………………………….. The Principal values full compliance with all relevant laws and regulations, and the principles of economic use of resources, and of fairness and transparency in its relations with its Bidder/s and Contractor/s. In order to achieve these goals, the Principal co-operates with the renowned International Non-Governmental Organisation 'Transparency International' (TI). Following TI's national and international experience, the Principal will appoint an Independent External Monitor who will monitor the tender process, the execution of the contract etc. for compliance with the principles mentioned above.

Section 1 - Commitments of the Principal 1. The Principal commits itself to take all measures necessary to prevent corruption and to observe the following

Principles in this regard:-

i) No employee of the Principal, either in person or through family members, including relatives, will in connection with the tender for or the execution of a contract, demand or accept a promise for or accept for him/herself or for a third person, any material or immaterial benefit to which he/she is not legally entitled.

ii) The Principal shall, during the tender process treat all Bidders with equity. The Principal undertakes and

ensures that before and during the tender process shall provide and share 'the same information to all Bidders and will not provide to any Bidder confidential/additional information through which one particular Bidder could take an advantage in relation to the tender process or the contract execution.

iii) The Principal will exclude from the process all known prejudiced persons.

2. If the Principal obtains information on the conduct of any of its employees which is a criminal offence under the

Anti-Corruption Laws of India, or if there be a substantive suspicion in this regard, the Principal will inform its Vigilance Office and in addition can initiate disciplinary actions.

Section 2 - Commitments and Undertakings by the Bidder/Contractor

1. The Bidder / Contractor commits and undertakes to take all measures necessary to prevent malpractices &

corruption. He commits himself to observe the following principles during his participation in the tender process and during the contract execution:

i) The Bidder / Contractor undertakes not to, directly or through any other person or firm offer, promise or give

or influence to any employee of the Principal associated with the tender process or the execution of the contract or to any other person on their behalf any material or immaterial benefit to which he / she is not legally entitled in order to obtain in exchange any advantage of any kind whatsoever during the tender process or during the execution of the contract.

ii) The Bidder / Contractor undertakes not to enter into any undisclosed agreement or understanding, whether formal or informal with other Bidders. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or any other action to restrict competitiveness or to introduce cartelisation in the bidding process.

iii) The Bidder / Contractor undertakes not to commit any offence under the relevant Anti-corruption Laws of

India. Further, the Bidder / Contractor will not use improperly any information or document provided by the Principal as part of the business relationship regarding plans, technical proposals and business details, including information contained or transmitted electronically for the purposes of competition or personal gain and will not pass the information so acquired on to others.

iv) The Bidder / Contractor will, when presenting his bid undertakes to disclose any and all payments made, is

committed to or intends to make to agents, brokers or any other intermediaries in connection with the award of the contract.

2. The Bidder / Contractor will not instigate and allure third persons / parties to commit offences outlined above or be

an accessory to such offences.

Section 3 - Disqualification from tender process and exclusion from future contracts

If the Bidder, before the award of contract, has committed a transgression through a violation of any provisions of Section 2 or in any other form so as to put his reliability or credibility as Bidder into question, the Principal shall be entitled to disqualify, put on holiday or blacklist the Bidder including from the future tender process or to terminate the contract, if already signed, on that ground. 1. If the Bidder / Contractor has committed a transgression through a violation of any provisions of Section 2 so as to

put his reliability or credibility into question, the Principal shall be entitled to exclude including blacklist and put on holiday the Bidder / Contractor from entering into any GAIL future contract tender processes. The imposition and duration of the exclusion will be determined by the severity of the transgression. The severity will be determined by the Principal taking into consideration the full facts and circumstances of each case particularly taking into account the number of transgressions, the position of the transgressors within the company hierarchy of the Bidder and the amount of the damage. The exclusion may be imposed for a minimum period of 6 months and maximum of three years.

2. A transgression is considered to have occurred if the Principal after due consideration of the available evidence,

concludes that no reasonable doubt is possible. 3. The Bidder with its free consent and without any influence agrees and undertakes to respect and uphold the

Principal's absolute rights to resort to and impose such exclusion and further accepts and undertakes not to challenge or question such exclusion on any ground, including the lack of any hearing before the decision to resort to such exclusion is taken. This undertaking is given freely and after obtaining independent legal advice.

4. Subject to the full satisfaction of the Principal, the exclusion of the Bidder / Contractor could be revoked - by

Principal prematurely if the bidder / contractor can prove that he has restored / recouped the damage caused by him and has installed a suitable corruption prevention system in his organization.

Section 4 - Forfeiture of EMD / Security Deposits

1. If the Principal has disqualified the Bidder from the tender process prior to the award in terms of Section 3, and

during the execution of the contract, the Principal shall forfeit earnest money deposit / bid security money, encash the bank guarantee including due payments in addition to blacklisting or putting on holiday the bidder and terminating the contract.

2. If the Principal has terminated the contract according to Section 3, or if the Principal is entitled to terminate the

contract according to Section 3, the Principal shall be entitled to demand and recover from the Contractor liquidated damages equivalent to Earnest Money Deposit / Security Deposit / Performance Bank Guarantee.

3. The bidder agrees and undertakes to pay the said amounts without protest or demur subject only to condition that

if the Bidder / Contractor can prove and establish that the exclusion of the Bidder from the tender process or the termination of the contract after the contract award has caused no damage or less damage than the amount of the liquidated damages, the Bidder / Contractor shall compensate the Principal only to the extent of the damage in the amount proved.

Section 5 - Previous transgression

1. The Bidder swears on oath that no previous transgression has occurred during the last three years with any other

Company in any country conforming to the TI approach or including with any other Public Sector Enterprise / Undertaking in India that could justify his exclusion from the tender process.

2. If the Bidder makes incorrect statement on this subject, he shall be disqualified from the tender process or the

contract, if already awarded, could be liable to be terminated on this ground.

Section 6 - Equal treatment to all Bidders / Contractors / Subcontractors 1. The Bidder / Contractor undertakes to demand from all its sub-contractors, if any, an undertaking and commitment

in conformity with this Integrity Pact, and to submit it to the Principal before signing of the contract. 2. The Principal will enter into agreements with similar conditions, as stipulated herein, with all Bidders, Contractors

and Subcontractors. 3. The Principal shall disqualify from the tender process all Bidders who do not sign this Pact or violate any of its

provisions.

Section 7 - Criminal charges against violating Bidders / Contractors / Sub-contractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an employee or a representative or an associate of a Bidder, Contractor or Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the Vigilance Office / Department for initiating appropriate action for above.

Section 8 -Independent External Monitor / Monitors (Three in number depending on the size of the contract)

(To be decided by the Chairperson of the Principal)

1. The Principal appoints competent and credible external independent Monitor for this Pact. 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.

2. The Monitor is not subject to any instructions by the representatives of the parties and performs his functions

neutrally and independently. He reports to the Chairperson of the Board of the Principal. 3. The Contractor accepts that the Monitor has the right to access without restriction to all Project documentation of

the Principal including that provided by the Contractor. The Contractor will also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and unconditional access to his project documentation. The same is applicable to Sub-contractors. The Monitor is under contractual obligation to treat the information and documents of the Bidder / Contractor / Sub-contractor with confidentiality.

4. The Principal will provide to the Monitor sufficient information about all meetings among the parties related to the

Project provided such meetings could have an impact on the contractual relations between the Principal and the Contractor. The parties offer to the Monitor the option to participate in such meetings.

5. As soon as the Monitor notices, or believes to notice, a violation of this agreement he will so inform the Management of the Principal and request the Management to discontinue or heal the violation or to take other relevant action. The monitor can in this regard submit non-binding recommendations. Beyond this, the Monitor has no right to demand from the parties that they act in a specific manner, refrain from action or tolerate action. However, the Independent External Monitor shall give an opportunity to the bidder / contractor to present its case before making its recommendations to the Principal.

6. The Monitor will submit a written report to the Chairperson of the Board of the Principal within 8 to 10 weeks from

the date of reference or intimation to him by the 'Principal' and should the occasion arise, submit proposals for taking corrective measures.

7. Monitor shall be entitled to compensation by the Principal on the same terms & conditions as being extended

to/provided to Outside Expert Committee Members of ONGC. 8. If the Monitor has reported to the Chairperson of the Board a substantiated suspicion of an offence under relevant

Anti-Corruption laws of India, and the Chairperson has not, within reasonable time, taken visible action to proceed against such offence or reported it to the Vigilance Office, the Monitor may also transmit this information directly to the Central Vigilance Commissioner, Government of India.

9. The word 'Monitor' would include both singular and plural. 10. Independent External Monitor shall be required to maintain confidentiality of the information acquired and

gathered during their tenure / role as Independent Monitor. Any breach in this regard would be subject to the legal judicial system of India.

11. The Independent External Monitors - shall be responsible to oversee the implementation of Integrity Pact Program

to prevent corruption, bribes or any other unethical practices in the GAIL. However, Monitor(s) shall be personally and severally be liable for any action or suit brought by Bidder / Contractor / against the Monitor, in case the findings of Independent Monitor is / are found incorrect or biased or prejudiced.

12. Independent External Monitor(s) shall be required to furnish an Undertaking and shall disclose before taking any

assignment that he / she has no interest in the matter or connected with the party (bidder / contractor) in any manner.

Section 9 - Pact Duration

The provisions of this Pact shall come into effect from the date of signing of this Pact by the both parties. It expires for the Contractor 12 months after the last payment under the respective contract, and for all other Bidders 6 months after the contract has been awarded. If any claim is made / lodged by either party during this time, the same shall be binding and continue to be valid despite the lapse of this pact as specified above, unless it is discharged/determined by the Chairperson of the Principal.

Section 10 - Miscellaneous Provisions 1. This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered Office of the

Principal, i.e. New Delhi. The Arbitration clause provided in main tender document / contract shall not be applicable for any issue / dispute arising under Integrity Pact.

2. Changes and supplements as well as termination notices, if any, need to be made in writing. Side Agreements

have not been made. 3. If the Contractor / Bidder is a partnership concern or a consortium, this agreement must be signed by all partners

or consortium members. 4. In case any or several of the provisions of this agreement turn out to be void, the remainder of this pact shall

remain valid. The parties to this pact however, shall strive to come to an agreement to their original intentions in such a case.

______________________ _________________________ (Name & Designation) (Name & Designation) For the Principal For the Bidder/Contractor

Place :________________ Witness 1: ____________________________ Date :_________________ Witness 2: ____________________________

1 . 0

PROCEDUNS FOR SVALUATION SF FFRTCIRY{Aff{F QTvE N poasJcQNrRAqrCIsF / f sFrsiJ rr4Nt-s

GENERAL

A system for evaluat ion of vendors/contrdctors ant l thr , : i r pc i - forr r i i t r r i . ( : i : -a key process anci important lo sLlppor f ar . i e f fcc l ive purch;1s i f t ! l &contract inq funct ion Ot an or l lan izat ion.

Pelr forrnance of a l l parL ic ip i : t i r ig Venr iors/ Ccnfrac l "ors/ Cor isu l farrLs r l i : { r f ito ber closely monitored to <.:nsuret t irnely ri:r:eipt of sr.l;rg:l ies frcrn ;tVendor, complet ion of ar ' t ass ignment by a Consul lani or corr lp i r leexecut ion of order by a contractcr wi th in schedLr led complet i { ln per icd.I -or t imely execut iorr of pro jects ancl meet i i rg t l re oper ; ; i ion 8arnaintenance ret lu i rernelnt of operat ing ; : lants, i t is ncccsE;rr r1 to nr i :n i iorthe execut ion of 'order or contracts r ight f ronr lhe a,"var- r . l s lagc tocomplet ion stage and take correct ive nreasures in t in :e.

OBJECTIVE "

The object ive of Evaluat ion. of Per f 'or rnance a in is tc recognizc, ar i r idevelop re l iab le Vendors/Contrac lors/Consul tanls so t l ra t t i reyco ns is tent ly meet or exceed expectat ions a nd ' r 'eq u i ret lents.

The purp:ose of th is proceclurc is to pr i t in p lace a systcrr ) to rnoni t i : i -per forntance of Vendors/Contractors lConsul tants associat .ec l wi ih GAiLin Projects and in O&F1 so as to ensure t imely coinplet icn of var iousprojects, t inre ly receipL of sLrppl ies inc luding conrplet iorr of ln ;orxs &serv ices for operat ion and rnaintcnanr:e of opcrat ing ; ; lants arrd r ; r - ra l i tys landards in a l l respects.

METHODALCIGY:

(i) P,qeparalion i:f Peffqrnary;g Rattrut Datals[cq{

Performance Rat ing Data Sheet for each ancl everyVendor/Conlractor or Consul tant for a l l orders/Ccnlracts wi th avalue of Rs. i lakh and above is recomrne r rded to be c i ravrn up.These data sheets ar{ } to be separate ly prr :pare;d fororc lers/contrac ls re latec l to Pro jects and O&M. Forrnal ,Pa ra meters, Prccess, responsi b i l i ty for prepa r"a l ion o l ' - rer fo r l -na nceRat ing i la ta Sheet aTe separate lv nrerr l ioned" .

2 . 0

3 . 0

( i i ) Measurement of per formancq

Based on the paramelers rje:finerJ in Data Sireir:t, Pcrfornlanr-et cfconcernecl Vendor, Contrac lor or Consul tani . l . r rould be crrn ipuicr larrc i graded accot 'c j tnqly . The measurernerr t o f t l re per forrnance afthe Party wot t ld be i ts abi l i ty to achieve the nr in i t rL: i r r sc l r ing c i '600lo points in the g iven parameters indiv idr" ia l iy and cc l lect ive iy .Any Party fail ing to sccurt: iess than thc rninirrir-rl Sct,, i-{: ir i any ofthe paranteters shal l not be considered lo remair i in business,r i : : i rG A I L . . '

(iii) IniLiotio-n qf M-e"a,!ure_p;

De pe ncl ing upon the Gracl l r rg of Per forrnar . )cc, corre c l ive rncasurc: ;r ,vould be in i t ia ted by tak ing up the nrat ter wi th concerr iedVendor,/Contractclr,/Consultant. Response af VertdorlContrac.tor/Consultant wr:ulcl bc r:nsirjerer.l bcfrlrc rltzr..rdirtrifur ther course of ac l . ion"

( iv) Implementat ion of Cr : r rect ive Measures:

Based on the response of Vendor/Contractor /Consi t l tant ,concerned Engineer - In - Charge for the ProjecLs anci lor OjC incase of O&M would recommend f i : r cont inuat ion or c l rscont inuat innof such par ty l rom the business of GAIL^ T 'hese recommendat ionswould be submit ted to the Competent Author i ty who woulc l p ; tss areasoned order for put t ing thc par ty on Hol iday/b lack l is t ing" .

(v) Orders/contracts p laced on propi t ia tory l0FM basis for Oi lF l ' r i i l br :evaluated and, i f requi red, correct ive act ion wi l l be taken fori rnprove ment in futurc.

4.4 EXCLUSIONs:

l -he fo l lowing would be excluded f rom the scc lpe of evaluat icn ofperforrna nce of Ve n d o rslCo ntra ctr: rslCo nsu lt;: nts.

( i ) O.c lers/L-ontracts belor ,v the vakte r : f Rs. 1 l_akh.

( i i ) One t ime vendor/ Corr t ractor lConsul tani .

( i i ' ) Orders for I { isc. /Adminis l ra l ive i temslNon stock Non valualec ir t ems .

However, conccrncd Enginecr- I r i ihargel /OlCs lv i l l cont inun to monrtorsuch cases so as to min i i ' i r ize the impact on Pi -o jects lO&l4 p; lanls duc l 'cnon pe r f 'or 'mance of Vendors/ Conlrac lors lConsLr l lants in a l i such case s.

Page 2 of 13

5 .0

3 . 1

PRp--C.ESS qF fVALUATION OF " psnronM&Frc"fi oFVENDSR$IEO NTRACTO R5 I CO N SU I=TANIS

FOR PRO]ECTS

(i ) Evaluat ion r : f per forrnancc of Vi ;nr io i -sy Conlrac iors, / Ccnsr i l tanrsin case of pROIfiCTS shiti l be rjr:nc imrnerji;tr,: i ' ; r,rrif f tcomrniss ionlng of any Project .

( i i ) On commiss ion ing o f any P ro jec t , L IC ( l ng l i nee r - i nChargeJ/Project In-charge shal l prepare a Perfqrrn; i r r r_e R.r t inq lData Sheet (Forrnat at Aririexurel-1) fcr all Orr.1r,:rs i,rrir l Cc;ntrai: i:,exc l i rc i ing i cases under para 4.0

( i i i ) Deperrd ing upon t l re Performarrce t i .a t lng, fo l lowing act ior i neeci t *b e i n jt i a ted b y F n g i n r:c r- i n - r:h a rg c/ P roj ilr.t- I n - r: h a rg,,: :

Reply f rom concerned Vendor/Ccntractor , /Ccnsul lant shal l br :examined. In case of sat is factory reply , Per formance l {at ing c iataSheel tri bel ck:seti rri i th a lcttclr to tl ie." r:orrcelrneci for i i .r ipravingperformance in future.

When no reply is received or reasons indicated are unsat is factury,the fo l lowing act ions need to be taken:

,w-irerc P_s {-q r-r.Da {K _c- rc lin s . i :. I' P" Q Q B ll ;

( i ) Recomnrend such defau l t i r rg \J endor/Contractor /Consul tant for put t i r rg on HOLIDAY for ; rper iod of l yc- :ar ' .

( i i ) When h is per forn lance has af fec ied overal l comple l io l ' rschedule c i f the prc ject , recon":nrend such defaul t ingVcndor/ Crntractor /Consul lant for put t lng or)l io l lDt .Y : 'cr ; r pcr icd r i ? l : : yca15,

Page 3 o f l3

( i v )

( v )

(A)

Pclrfr:rrnanceRat ing

VERY GOOD

Seek explar iat ion for Poore rforrnanc:c

Seek e>glanat ion for Fai r per fo i l 'nq{rceLet t r r to lhe conce rncd for inrprov i r ;93per l 'or rnance in future.

No fudhe r

(B) Where Performance rating ig l lFAIBll.

Recornrncnd for issuance of lv;:rri ing to sur:h r.icfaL.r!irri<1Vendor/Contrac lor /Consul tant to i rnpi -c ,ve t . i rc i rper formance.

(v i ) I r respect ive of Per farmance rat ing, vrhere Vencior l Contrac. icr , /Consul tant subrni t f i : rgeci docurr ;cnts in rcspei : t c ; f i lx ; : t r i r t lcc,turnover and any othen condi l ion forrn ing t f ie basis f r : r the ; : i -e ,qua I i fy in g/e l i -c ib i l i ty cr i ter icn, su ch Vendor/Cantrac lo r /Co n s i r l iantshould be reconrrrencied for l lL-ACKLlSl lNG.

(vii) On receipt of r-onsoliclaler.i rc-corrrrrrcrid;.tt ians rtf i ::rrqint:r,:r, 1.n-Charge of a Projec l , the Fro ject Manager wi l l cr i r rs l i l r_ : t<, : .1Commit tee of Head of Pro jects, C&P and Finani :e to exanr jne thereconr inendat io | ts forwarded by the Engineer, in charge.

(v i i i ) In case commit lee recon' )mends pr . r i . t ing a par ty on hol ic lay or fcrb lack l is t ing, the Project Manager wi i l put up t i re re ccnrr lenrJat ronof commit tee to the concerned Director thrcugi r Corpci ra ie C.&i)Dept t . a long wi th a draf t show caus€ not j r :e prov id ing a f i r rs i iopportuni ty to defencl h is caEc-.

- [he draf t s f io l ,v caus<: r ro i icr :

shoulc l be vet tec i by l -egal Dept t .

( ix) Af ter obta in ing approval f rom t l re concerned Director , CorporaieC&P department wi l l issue the show cause ncr l ice to the concernecjpa rty.

(x) On receipt of reply in response to s l iow cause not ice, CorporalsC&P Dept t . lv i l l forward lhe same to Project l " lanager w*ho af tertak ing legal opin ion wi l l prepare a proposal for ketetp ing thc par tyon l lo l iday, / for b lack l is t ing and forwarc l the same t r : CorporaLcC&P Dept t . for obta in ing the approval o1 ' lhe conccrned Dircc lor .

(x i ) Af ter obta in ing approval f rorn the concernecJ Director , CorporeteC&P Dept t . wi l l issue a le t tcr to the; :ar ty r : r : r ivcy ing thc dcc: i : i ior ro f pu l t i ng h im on ho l i day f o r t he spcc i f i c pe r i oc l o r b l ack l i s t i r r g I neparuy.

( x i i ) A l i s t o f a l l pa r t i es pu t on ho l i day o i -b lack l i s ted r ^ r i l l' comrTrunicatec i to a l l concerneci and y l i l l a lso be: r la in la i i red

GAIL Int ranet .

(x i i i ) Hclvever, Hol iday restr ict ior ls shal l not appl) , on Vendor: ; fsr-procurei ient r : f spares frorn them on proprietary i :asis.

Page 4 of 13

b ei l l

t '

5 . 2 FOR CONSULTANCY ]OB5

Moni tor ing and Evaluat ion of consul tancy jobs wi l l be r :arr ie : rJ r . l i r t in t i re :same way as descr ibed in para 5.1 f ( ) r pro jects exr .cpt tne funct ior is c fPro jec i Manacjer wl l l be per formed by concerned r r r -charges of r rse iDept ts . such as Project Developmerr t , Business Developm*r iL, [ap, i l , ] . ,F i n . rnce , HSE e tc . I he p rov i s i on o f pa ra 5 .1 ( x r i i ) w r i r no l l : e a i : r i i r : " : b r r .fc i r consul tancy jobs"

FO R O p E RATr 0 N,&']y!AiNIE rlANe_F

( i ) Evaluat i r : r i o f per forrnance r : f V i tnrJr : rs l Ci rnt rackrr -s / Con: ; r ; l i ; i r r : :sin casc of Ope rat ior : and Mainte:na{rc{ : shal i Lr r : rJor ic inr r : rc iJ ia i l l , , ,a f ter execut ion of order / conl rac l .

( i i ) Af ter execut ion of order a per f r : rnrance Rat ing Daia s i re et { ' iar rnar .at Annexure-?-) shal i bc prepi l re l r i fo i - a l l or r jurs i ;y 3r ter c&l ar i r ifor a l i Contracts/serv ices by respccr ivc Fngincer-- l r i - fh ; i rgcexc lud ing cases unde r pa ra 4 .0

( i i ' ) Depending upon Performance Rar i i rg , fc l lowing; ac i ;o i - r n i :ec i to bcin i t i ; rLerJ by Si te C&p:

Sl . Nt : PerformanceRatins

Act ion

1 POOR Seek explarr ; t ion f 'or pDerformance

2 FAIR Ser:k explanaf ion for rDe rformancc

3 GOOD Letter to the concernerJimproving per fornrancefutu re.

A VERY GOOD No fur ther act ion

( iv) Reply { ' rorn concerned Vendor/contractor /conEul lanl shal l bcexamined" In case of sat is factory reply , per forrnance Rat in-c; <1atasl r r :e t to be c loserJ wi th a le t tcr to t l re cr , r r r r - r r rncc j fu i i r r rg. r ;1, i , ; r ,1pe,'rforrna ncr: in fu tu re.

When no reply is received oT reasons jncJ icatccJ are unsal is f ,actcrv,the fo l iowing act ions need to be taken:

where Ptl-fBrnatce ratlns is llP-oaR"

P.ccoinrnerrci sLrch de fau i r ! ng Ven io r lput t ing on H0l , l i lAY fc l - aContractor/Consu ltani for

period of 1. ycar.

Page 5 of 13

( v )

(A)

{ 1 1

( i i ) When l r is per formance has ser io i - rs ly af fect .ed 1.heopt:ratir:n & rlaintertanr:c of plant, rer:ori.rrlerlrJ sr-tr.;f lt le faul t ing Vendor/ Conlractor /Consr , r l tan i f 'or pr , i i . t in , .1on H0LIDAY for a per iod af ? i3 y*a15.

(fi) $l-here P-e-rf-prm.an-E.e.latins i$ ::fAlJ-{1.

Reconrnrend for issuance of lvarn ing | r r such deiar- r i l ingVendors, /Contractors/Ccnsul tanls tc i r rprcve ihc i rper formance.

(v i ) I r rcspect ive. : o f Pe, ' r formance rat ing, whcre Vcnclor / Coi l t rac, t r : r lConsu l tan t su brnit forged d cci-r i'n e il ts : ;uc f iVendor/Contractor /Consul ta i i t should be reccmmerrder j farBLACKLISI ' iNG.

(v i i ) A quarter ly meet ing of l -JOD (C&P), i {OU { f&A) a i rc i i tOL) c frespect ive departments shal l be held at Si te lc rerr ie ' l ; rndexamine a l l cases requ i r inq pu t t ing the

( v i l i )

vendcrs/contractors/consu l ta nts on ho l iday ror l i na I decis ic n.

On receipt of ' recommenclat iorr af commit icc for pLi t t i r - l i , r a prr lyon Ho l i day o r f o r b l ack l i s t i nq , O IC w i l l pu t up l herecommendat ion of Comni i t tee to t l ie concerned Direr torthrough Corporate C&P Dept t . a long wi lh a draf t .s f row causenot ice provid ing; l f ina l opportuni ty to par ty lo r le fcnd i r is c .ase.The show cause not ice wi l l be lcgal ly ve l |ed.

Af ter obta in ing approvcr l f rom t l rc conce i 'ne d Di iect r - r r ,Corporate C&P department r ry i l i issr . re ' i l re l show r :a i rsc r ro l i r . t : lothe concerned par ly .

On rece ip t o f r ep l y i n r cspo t t se t o s l t o ' r cause no t i cc , f c rp rL ra l cC&P Dept t . wi l l foruvard the same to OiC who af ter fa i<rng legaiop in ion w i l l p repa re a ; : r o ; : r os i : l f o r kecp ing thg pa r l y o i tl " lo l iday/ for b lack l is t ing and forwarc l thc sanrc to Cr: rporate C&PDept t . for obta in ing t l re approrra l of t l re c .J i raui I r ; :C i r i ; r : . tor .

Af ter obta in ing approval f rom the concernerJ [ ) ! rector ,Corporate C&P Dept t . ur i l l issual a l r ' : l tcr to thq: pat ' ty co lvcy i r rqthe dec i s i on o1 'pu t l i ng h i rn on ho l i c i ay f o r l he spec i f ! c pc r i cd o rb lack l is t inq t l re par ty .

A l is t o f a l l par t ies put cn hol id ; . ty r : r h iack i iEt r , r t i l t i l i br :comrnuni i .a ted to a i i LorrLer i lcd and wi l l a lso bt : r r ia int , r i r l r , : 'J a lGAIL In l ranel .

( i x )

( x i )

t * i , l

Page 6 of 13

( x )

6 . l "

(x i l i ) Holvever , Hol iday restr ic l ions shal l not appiy r :n Vendors fc i -procurement of spares f rorr thenr on prcpnet i l ry l :as is .

6.0 RTVIEW & RE5IQ_8AfI_Q,N O-T PA-RITES PU, ON TOLIDAY/BL.ACKL ISTT}

Af ter expi ry of Hoi iday per iod, the venclcrs/ccntractorr /ccnsui ta; r l ! ' rnr i ro

have becn put on Holiday cjuc to dr.: lay in r:r:rnJ:leliclri schi':r jr i ir: lr l l i i .:r,:autornatir:ally restoreci to partic;ig:ate in i:usinE::;s wilh GAii..^ i '- lor,vctvr:r,pa r t i es who have been pu t on l l o l i c l ay due to qua l i t y p rcb len rs u ; t l l bcres lored only af ter a rev i€rv by the commit tee ra. r i r i r : i i had r :ar i ierreconrmended the par ty to be put on Hol iday.

6.2. The per ior l o f Ht t l iday wi l l be i . f r r : r t r onel ycar te thr t :e y i t i ' : r 's c i r , ) i lc l ( l l i ) tupon the ser iousness of fa i lure. l t can bc three yea;-s in cx l , rernc c i ;s ' :sand may be one year or ln 'o years dependinq upon the : rature of fa i l , . t r "ei n ne r fo rn rance .

I 'age 7 of 13

JT

GAIL (India) t- inr i ted

pf"Rf oRFlA.NQr RATING D.AJ& S.l:t f; E:r( rqR p RoJ EcJs / c0 N q-u LTAFT Cy- 3QS S l

(i) Pnr:jcr:t/ Work Csnter

( i i ) 'Orde

r /Contract No. & Date

( , i i ) Br ief c lescr ipt i0n 0f I temsWorks/Assig nrfinnt

( iv) Order /Contract va lue (Rs.)

(v) Name of Vendor/Contractor /Co ns u l ta nt

Contracted dei ivery/Comp le t i on Schedu le

Actual del ivery/Comp le t i on da le

Remarks ( i f any)

PER|"ORMANCE RAT ING (x1,)No te :(* ) Al local ion of marks would be as per encloser i ins l r i - rc t ions(* t ' ) Per formance rat inq shal l be c lass i f ied as urrder :

( v i )

( v i i )

s t .N o .

f J r n r r o

(MarksRat i ng

l 60 & belor,ar POOR2 o I - , / : FAIRJ 76-90 GOODAq More than 90 yFRY

GOOD

Signa tu re o fauthor ized Signatc l ry

Name :

Des igna t i on :

Page 8 of 13

PerformancePa ra nreter

Del ivery/Complct i< lnPerformance

Qual i t yPerforrra nce

Rei iab i l i l y I To ta lPerlorr lanr:c I

Nlaximum Marks 40 4 0 7f) I f i ntr ' larks Ailocated( * )

,

lnstruct ions fof al !ocFt ion of*marks

Marks are lo be al located as under:

1 .1 DELMRY/COIv IPLETIONpERFCIRfqANCF 4SMarks

DeliveuPgriod/ pelay irryVeei($ l4artq{$giopletion Sch"edule

a) Up to 3 months

t " 2

more lhan 16 weeks r r

b) Abovc 3 rnonths Before CDD 4CIDe lay up to 4 yreeks , \ :

., B rveeks "ii)" "10 we eks :-i" 16 weeks ::o" 20 weeks i,{" 24 weeks l0

more than 24 lveeks t. l

Q{JALITY PERFOF{,MAr{CE 4S Marks

lor Nor lnal Cases: No Def€cts/ /No Deviat lorr /Nc fnr iu ic :

i Rcjcct ion/ Del 'ec ls Marks 1.o be a l located onA F ^ - 5 F l h a - i - { ^ . - - - - ^ ^ r - l . l ^p r u r d L d u d ) r 5 t u t d L L C p , . . i l ] r c

quant i ty as compared to tora iquant i ty for nornra l cases

i i When qual i ly Fai lure of severe natr . r refa i l r " r re endanger Moderate naluresystenr in le grat icn - low seve re na ' .u.eand safety of thesystelrn.

i i i N u m b e r o fdev ia t ions

Pagc 9 o f l 3

Before CDD 4fiDclay up to 4 wl:eks r i

" I weeks l i l" "1

0 r,.;eeks ).1"

12 weeks ^j-t ll ( r \ , V C € K S i l

1 . No dev ia i i o r i2 . No. of deviat icns *< 23. Nr :^ of rJevia l ions > 2-

4() rnerks

1C rnai 'ks

0 nrarl. ls5 nrarksi ( l ' . 25 l l a r k :

5 rnarks2 rnarksfi rni:rks

l

)

1.3 RELIAf i IL ITY pSRfORMAt{Cf Z# F4arks

l \ . FoR wORKs/ COHTRACTS

(i ) Submiss ion of c i -der f iccepta i tce, 4 r r : * rk : ;agreement , PBG, Drar l ings a i rd otherd0cLr rr'rents lvitfi in tirn<l

Mobi l izat ion af resourc€sCont rac t and in t ime

( i i )

{ i i i ) l . . . ic1r.r id;r t lon of Check-l ist 1rr : in is

( iv) Compliance to statutcrry arrd HS & b:requ irements

as i , ) € r 4 m . : i kc

tll iJ :-l.i 5

J)ar?.s

4

4

ts.

( i )

o r

Re l iab i l i t y o f Es t imates /Des iqn /Drawr n getc. in case of Consultancy jobs

{v ) f ime ly submiss ion o f es t imates anc l 4 n rarksother docurnenLs for Exlra, l iubst l tLrted& AHR i t en rs

F O R S U P P L I E S

Sl tbmiss ior i o l orc ler acceptance, PBG, 5 nra i -ksDraur ings and other docul r rents wi th int i rne.

( i i ) At tending compla ints and requesls 1 'or 5 mai ' i rsaf ter Sales serv ice/ warranty repai rsand /or query ladvice (urpto theevaluat ion pcr iorJ) .

( i i i ) Response to vei r ious corre lpc i i r ier rce l l marksand ccnformance to s tandards l ike i50

( iv) Subrniss ion r : f i l l l rc l r lu i red c locurni : r r ts 5 rn; l ik : ;i i r c l ud ing Tes t Ce r t i f i ca tes a l t he t imeo f supp i y

Page 10 of l3

f

.rl

@e-aqeEGAIL ( Ind ia ) L imi ted

qFRTOSMANCE R,qrrr{C pArA gH.rg-r {r-Q-Kq&ry}

( i v )

( v )

( i )

( i i )

( i i i )

Co nsu l ta nt

(v i ) Contracted del ivery lComp le t i on Schedu le

(v i i ) Actual del ivery/Conrplet ion r la te l

l-ocatioir

Orcjcr/Contract lJo. & Date:

Br ief descr ipt ior r of I tenrs\l/orks/Assig n nrent

Orc lcr /Ccntract va luer (Rs. )

Nanre of Vendor/Cantracto/

Performa nceParam*ter

Del iveryFe rfornranci:

Qua l i t yPerfi:rrlanr:e

R e l i a b i l i t y I 1 oI

rc i ' t0 r ina f t ( . ( t IM a x i m u mMarks

40 ?,() 1 0

MarksAl loca ted ( *

,;l-tRemarks ( i f any)

PIRFORMANCF RAl 'rNG ( '*) I I

Note: (x) Al lccal ion of nrarks to be as per enclnser l i i rs l ruc l ions( 'F ' r ) Per fornrance rat i r rg s l ra l l be c lass i f ied as unde r :

5 t .N o .

Ranqe (P la rks ) R a t l n 0

i 6 0 & bellow POOR2 6 r - 7 5 FAlR3 76-94 GOO{)A More than 90 VERY

GOOD

P a g e l l o f 1 3

5 ig ;na tu re o iauthor ized Sic l r ra iory :

N a m e :

De s igna t i on :

t..i :

In_stlustions for a!tocatipn-*of ryrarks iFo!- 0&F,l !

Marks are lc be a l located as unde r :

1.1 SFLMRY/COI.NPLHTIOFJpf iRFORMAf{ t f lS 4SMarks

Detivery-Feriod/ Defay in-lUeetqs Wal}:S€p.nlpletion Sqhedule

a) LJp to 3 montlrs Befcre CDI)Dciay up to 4 lvccks

" I wc.eks' ' 10 wt ;e ks" 12 weeks" 16 week: ;

nrore than 1fi we eks

b) Abr:ver 3 rnonths Bcfore CDI)De lay up to 4 weeks

" B r,^tr:eks" 10 l reeks" 16 wecks" 20 vreeks" 24 weeks '

nrore than 24 weeks

4t)' l i

_ : i l

..1 r1l{}i :

t J

4i)

t , ,

a*,l i

l l l

i l

L.2 QUALITY PERTORMAFICE 4o Marks

For Nor;nal Cascs: No t.)efucf.s/No l.)cviai. ion./No fuii,rrr: : 40 tnai-l<:

i Reiection/ Defects Marks to be allocateC orr .1[,r ni;rri<spr0rata basis for acceptablequant i ty as compared to tota lquant i ty for norr ra l c . rse:s

Fai lLrre of seveie nat l l re l l . nark:- I ' iqderale nalate l ; r t r i i rks- low se 'Jere natr t re l .C- . l f i r r ; r rk

i i When qua l i l yf ; : i l u re e r rdange rsystem integrat ionand safely of tfresystem.

i i i N u m b e r o f- r lev iat ions

1 . No dev ia t i cn2^ No. of dc:v iat iorr : ; S3 . No . o f dev ia { . i ons >

2.2

5 nrark:;2 rnarks0 r l a r ' l <s

P a g e l 2 o f 1 3

1.3 RELIASILITY FFRFOR.MANCE 2G Marks

A, FOR WORKS/ COhiTRACTS

(i ) Subrniss ion cf order acccf) tancc, 4 r larks;ag reemcn t , PBG, D raw ings and o thc rdocumen ls w i t h i n t ime

{ i i ) Mobi l izat iorr of rcsourcLlsCort t . ract and i r r t ime

i r5; i ) f r f 4 l l ic ; ; { ! -

marks

f n a i k I

( i i i ) L iqu ida t ion o f Check- l i s t po in ts

( iv) Compliarrce t i l statr- l tory and HS & trcquirements

or

4

4

( v )

B .

Rel iabi l i ty of Hst imateslDesignlDrarrv i r rgetc. in casc t l f Consul tancy jo i :s

T ime ly submiss ion o f es t jma tes and 4 mar r< :other documents for [x t ra, Subst i tu ted& AHR i t ems

FOR SUPFL IES :

Page 13 o f 13

( i ) Subr l iss ion of orc jer- accc; : tar icc: , PBG,Drawings and other c locunrenls rv i lh int ime .

5 r t r a r ks

( i i ) At tending compla in ls and rec lur ls ts i 'c raf ter Salcs serv lce/ warranty rcpai rsand /ar query/advice (up t<: t i reeva lua t i on pe r i od ) .

5 nt a iKS

( i i i ) Response ro va r i ous co r respondc i r ccar id conformance to s tandards l ike I50

5 marks

( i v ) Subrr i iss ion of a l l requi rec l docurneni .si nc lud ing Tes l Ce r t i f i ca tes a t t l ' ] c t imeo f s u p p l y

5 marks

of 4

APPENDIX-6 TO CC NO. 2

BIDDING DOCUMENT NO.: SST/6921-060-QB-MR-9010/1001 PROJECT : VDBPL TERMS OF PAYMENT – OPTION 3

CASE – I 1.2.2 Foreign Bidder (supply of coated pipes from overseas/Indian Sub-Supplier for

other scope of Services): 1.2.2.1 90% of CIF value of Coated pipes will be paid progressively against receipt of coated pipes

at Kandla Port, after port clearance by Purchaser / Consultant after adjustment against monthly PRS and against submission of invoice in triplicate along with: a. Cenvatable/Vatable Invoice in triplicate b. Inspection release note issued by Purchaser/Consultant. c. Clean Bill of Lading. d. Packing List. e. Country of origin certificate f. Proof of customs clearance including payment of Customs duty for import permitted

in the Contract g. Indemnity bond for the total price of delivered items at warehouse as per attachment

III. Import Duties (Customs Duty & Cess) on such pipes shall be paid directly by the Purchaser

(GAIL) to Indian Customs Authority. The Customs and Port clearance and transportation of Pipes in India shall be undertaken by the Foreign Bidder/their Indian counterpart. The responsibility for transportation of Pipes directly from Indian Port to Coater’s Works and from the Works to Warehouses for the coated Pipes shall be with the Foreign Bidder. The Pipes shall be consigned to GAIL (India) Limited. The Foreign Bidder shall furnish Indemnity Bond equivalent to the CIF value of Customs Cleared goods plus import duties to Purchaser before undertaking above activities. The Indemnity Bond shall be valid till handing over of last pipe to laying Contractor.

Any delay in submitting Indemnity Bond and thus resulting in any cost/charges to Purchaser including demurrage/wharfage shall be to Bidder’s account only. Responsibility of safe custody of Pipes while undertaking customs clearance; transportation etc. shall be with Foreign bidder. Foreign Bidder shall indemnify GAIL against any losses of or damage to misuses or misappropriation whatsoever of Purchaser’s Pipes while in possession of them / their Indian counterpart. Foreign Bidder shall take adequate precautions for safe custody of Purchaser’s Pipes including its insurance while in their possession. In order to import the goods on project rate of India customs duty, bare line pipes shall be consigned in the name of GAIL. The customs duty applicable on the import of bare line pipes shall be paid by GAIL and the cost of the same shall not be included in the quoted prices.

1.2.2.2 Balance amount shall be paid progressively within 30 days after handing over of coated pipe to the laying contractor and receipt of Final Technical Document (if any) as specified in PR.

CASE -II 1.2.3 Foreign Bidder (Foreign Manufacturer and consortium with Indian Coater):

1.2.3.1 90% of CIF value of bare pipes will be paid progressively against receipt of coated pipes at Kandla Port, after port clearance by Purchaser / Consultant after adjustment against monthly PRS and against submission of invoice in triplicate along with: a. Cenvatable/Vatable Invoice in triplicate b. Inspection release note issued by Purchaser/Consultant. c. Clean Bill of Lading.

of 4

d. Packing List. e. Country of origin certificate f. Proof of customs clearance including payment of Customs duty for import permitted


III. Import Duties (Customs Duty & Cess) on such pipes shall be paid directly by the Purchaser

(GAIL) to Indian Customs Authority. The Customs and Port clearance and transportation of Pipes in India shall be undertaken by the Foreign Bidder/their Indian counterpart. The responsibility for transportation of Pipes directly from Indian Port to Coater’s Works and from the Works to Warehouses for the coated Pipes shall be with the Foreign Bidder.

The Pipes shall be consigned to GAIL (India) Limited. The Foreign Bidder shall furnish Indemnity Bond equivalent to the CIF value of Customs Cleared goods to Purchaser before undertaking above activities. The Indemnity Bond shall be valid till handing over of last pipe to laying Contractor. Any delay in submitting Indemnity Bond and thus resulting in any cost/charges to Purchaser including demurrage/wharfage shall be to Bidder’s account only. Responsibility of safe custody of Pipes while undertaking customs clearance; transportation etc. shall be with Foreign bidder. Foreign Bidder shall indemnify GAIL against any losses of or damage to misuses or misappropriation whatsoever of Purchaser’s Pipes while in possession of them / their Indian counterpart. Foreign Bidder shall take adequate precautions for safe custody of Purchaser’s Pipes including its insurance while in their possession. In order to import the goods on project rate of India customs duty, bare line pipes shall be consigned in the name of GAIL. The customs duty applicable on the import of bare line pipes shall be paid by GAIL and the cost of the same shall not be included in the quoted prices.

1.2.3.2 Balance amount shall be paid progressively within 30 days after handing over of coated pipe to the laying contractor and receipt of Final Technical Document (if any) as specified in PR.

CASE-III 1.2.4.1 In case of (d) and (e) as per sub-clause No. 1.2.4 of Sr. No. 55 of Corrigendum No.1,

Payment Terms for two contract under Option 3 shall be as follows: ALTERNATIVE-1: Supply of Bare pipe by Foreign Bidder and all other works (including coating) by Indian

sub-supplier. Contract : A : For Supply of Bare Pipes by Foreign bidder: (I) 90% of CIF value of Bare pipes will be paid progressively against receipt of coated pipes at

Kandla Port, after port clearance by Purchaser / Consultant after adjustment against monthly PRS and against submission of invoice in triplicate along with:

a. Cenvatable/Vatable Invoice in triplicate b. Inspection release note issued by Purchaser/Consultant. c. Clean Bill of Lading. d. Packing List. e. Country of origin certificate

of 4

f. Proof of customs clearance including payment of Customs duty for import permitted in the Contract

g. Indemnity bond for the total price of delivered items at warehouse as per attachment III.

Import Duties (Customs Duty & Cess) on such pipes shall be paid directly by the Purchaser

(GAIL) to Indian Customs Authority. The Customs and Port clearance and transportation of Pipes in India shall be undertaken by the Foreign Bidder/their Indian counterpart. The responsibility for transportation of Pipes directly from Indian Port to Coater’s Works and from the Works to Warehouses for the coated Pipes shall be with the Foreign Bidder. The Pipes shall be consigned to GAIL (India) Limited. The Foreign Bidder shall furnish Indemnity Bond equivalent to the CIF value of Customs Cleared goods plus import duties to Purchaser before undertaking above activities. The Indemnity Bond shall be valid till handing over of last pipe to laying Contractor. Any delay in submitting Indemnity Bond and thus resulting in any cost/charges to Purchaser including demurrage/wharfage shall be to Bidder’s account only. Responsibility of safe custody of Pipes while undertaking customs clearance; transportation etc. shall be with Foreign bidder. Foreign Bidder shall indemnify GAIL against any losses of or damage to misuses or misappropriation whatsoever of Purchaser’s Pipes while in possession of them / their Indian counterpart. Foreign Bidder shall take adequate precautions for safe custody of Purchaser’s Pipes including its insurance while in their possession. In order to import the goods on project rate of India customs duty, bare line pipes shall be consigned in the name of GAIL. The customs duty applicable on the import of bare line pipes shall be paid by GAIL and the cost of the same shall not be included in the quoted prices.

(II) Balance 10% of CIF value of Bare Pipes shall be paid progressively within 30 days after

handing over of coated pipe to the laying contractor and receipt of Final Technical Document (if any) as specified in PR.

Contract : B : For port handling, inland transportation, Coating and other scope of

Work as per bidding document: (I) 90% of Cenvatable/ Vatable Invoice value will be paid progressively against receiptof coated

pipes at warehouse by Purchaser / Consultant after adjustment against monthly PRS and against submission of invoice in triplicate along with: a. Invoice in triplicate b. Inspection release note issued by Purchaser/Consultant at warehouse. c. Packing List duly endorsed by Purchaser/Consultant indicating receipt of material at

warehouse.

(II) Balance 10% amount of total Invoice value shall be paid progressively within 30 days after handing over of coated pipe to the laying contractor and receipt of Final Technical Document (if any) as specified in PR.

ALTERNATIVE- 2: Supply of coated pipes by Foreign Bidder and all other works by Indian sub-supplier. Contract : A : For supply of Coated Pipes by Foreign bidder:: (I) 90% of CIF value of Coated pipes will be paid progressively against receipt of coated pipes

at Kandla Port, after port clearance by Purchaser / Consultant after adjustment against monthly PRS and against submission of invoice in triplicate along with:

of 4

a. Cenvatable/Vatable Invoice in triplicate b. Inspection release note issued by Purchaser/Consultant. c. Clean Bill of Lading. d. Packing List. e. Country of origin certificate f. Proof of customs clearance including payment of Customs duty for import permitted


III.

Import Duties (Customs Duty & Cess) on such pipes shall be paid directly by the Purchaser (GAIL) to Indian Customs Authority. The Customs and Port clearance and transportation of Pipes in India shall be undertaken by the Foreign Bidder/their Indian counterpart. The responsibility for transportation of Pipes directly from Indian Port to Coater’s Works and from the Works to Warehouses for the coated Pipes shall be with the Foreign Bidder. The Pipes shall be consigned to GAIL (India) Limited. The Foreign Bidder shall furnish Indemnity Bond equivalent to the CIF value of Customs Cleared goods plus import duties to Purchaser before undertaking above activities. The Indemnity Bond shall be valid till handing over of last pipe to laying Contractor. Any delay in submitting Indemnity Bond and thus resulting in any cost/charges to Purchaser including demurrage/wharfage shall be to Bidder’s account only. Responsibility of safe custody of Pipes while undertaking customs clearance; transportation etc. shall be with Foreign bidder. Foreign Bidder shall indemnify GAIL against any losses of or damage to misuses or misappropriation whatsoever of Purchaser’s Pipes while in possession of them / their Indian counterpart. Foreign Bidder shall take adequate precautions for safe custody of Purchaser’s Pipes including its insurance while in their possession. In order to import the goods on project rate of India customs duty, bare line pipes shall be consigned in the name of GAIL. The customs duty applicable on the import of bare line pipes shall be paid by GAIL and the cost of the same shall not be included in the quoted prices.

(II) Balance 10% of CIF value of Coated pipes shall be paid progressively within 30 days

after handing over of coated pipe to the laying contractor and receipt of Final Technical Document (if any) as specified in PR.

Contract : B : For Port handling, inland transportation and other scope of work as

per bidding document:: (I) 90% of Cenvatable/ Vatable Invoice value will be paid progressively against receiptof coated

pipes at warehouse by Purchaser / Consultant after adjustment against monthly PRS and against submission of invoice in triplicate along with: a. Invoice in triplicate b. Inspection release note issued by Purchaser/Consultant at warehouse. c. Packing List duly endorsed by Purchaser/Consultant indicating receipt of material at

warehouse.

(II) Balance 10% amount of total Invoice value shall be paid progressively within 30 days after handing over of coated pipe to the laying contractor and receipt of Final Technical Document (if any) as specified in PR.

C:\Documents and Settings\Administrator\Desktop\corr-2\F-14-appendix7.doc

APPENDIX-7 to CC NO. 2

Format – F 14

3 LPE / INTERNAL COATING MILL CAPABILITY ASSESSMENT This is to certify that M/s _____________________________________ reference plant’s production line __________________ has following manufacturing facilities to UNDERTAKE COATING ________________ type of line pipes as per relevant EIL/CAN standards.

INSPECTION AGENCY S.No. DESCRIPTION

OBSERVATION REMARKS ON CONFORMITY

A. GENERAL INFORMATION

1.0 Detailed description of Organisation (Structure, number of employees, facilities, equipments, etc.) concerning the following :

1.1 Overall structure of Mill Organisation -

B External and Internal coating facilities & capacity

1.0 Testing Laboratories

1.1 Qualify Control/ Quality Assurance (QA/QC) :

Type and location of the testing facility and step-by-step operations followed to achieve high quality product as per technical specifications.

1.2 Latest Audit certified documents performed during production by one of the International Inspection Agencies (as listed in IFB/ITB).

1.3 Company shall have valid ISO 9001-2000 certificate and established quality manual.

C COATING & INSPECTION PROCEDURES

1.0 Give detailed description of the coating process to produce coated pipes as per technical documents.

1.1 Inspection of raw material (Epoxy/Adhesive/PE)

1.2 Surface preparation ( Blasting & surface




treatment)

1.3 Pre-heating before epoxy application

1.4 Coating chamber and cooling chamber ( inter coat time / cure time)

1.5 Epoxy chamber /gun location/ number of guns/gun pressure

1.6 PE & adhesive extruders RPM

1.7 Line speed. Monitoring system for line speed shall be in place

1.8 Rollers shall be preferable PU type

2.0 Following shall be certified for Mill Capability :

2.1

Inspection of Raw Material (Epoxy/Adhesive/PE)

The plant shall have all the in house test facilities for batch testing of incoming raw materials

2.2

Pre Heating of Pipes before blasting

Mill shall be equipped with required number of blasting stations and pre heating arrangement before 1 st blasting and also with facility for surface treatment before blasting ( DM water wash station)

2.3

Surface Treatment

Mill shall be equipped with surface treatment facilities ( chromating ) before pre heating before epoxy chamber

2.4

Pre heating before Epoxy application : Induction heater with high temperature tripping system along with visual and audio alarm indicators shall be installed

2.5 Number of Epoxy guns and Positioning before adhesive application :

Number of guns and gun pressure shall be sufficient to achieve desired thickness of epoxy on the pipe surface. Positioning/location ( distance before adhesive application) of guns should be maintained to satisfy cure time requirement of epoxy.

2.6 PE / Adhesive Extruders:




PE/ adhesive extruders RPM shall be maintained to achieve adhesive and final coating thickness

2.7 Cooling Chamber ( Chiller):

Length of cooling chamber should be sufficient to attain the coating pipe temperature out of cooling chamber as per requirement

D Inspection and Testing .

1.1 In house testing facility for all the lab testing and plant testing shall be in place.

1.2 All the testing procedures for Raw material testing, 1st day production testing and routine testing shall be available

1.3 Lab testing

a)Raw material testing b) Procedure qualification testing c) Routine testing etc.

1.4 Plant testing

Impact test, Holiday test, Peel off testing, Procedure qualification tests, St Andrew Cross Test, Test on partly coated pipes etc.

1.5 All instruments used shall have valid calibration certificates. Availability of calibration reference standards and instruments

E Internal Coating

1.1 For internal coating facility for the in house testing of raw material and long duration procedure qualification test shall be ensured. else the tie-up of mill with reputed testing labs ( IIT’s, IIS ) etc to be ensured.

1.2 Dust level after Internal blasting to be ensured.

1.3 Mixing ratio of Hardener and Liquid epoxy to be ensured.

1.4 Facilities at yard for handling and storage of internal coated pipes to be




ensured.

1.5 Work instructions and procedures to be displayed at each and every work station for ready reference for both internal / external coating

1.6 Various procedures established shall have approval from International Inspection Agencies

Overall acceptability : ACCEPTABLE / NOT ACCEPTABLE For & On behalf of Signature Name Designation Agency’s name & Seal GAIL/ EIL C:\Documents and Settings\EIL\My Documents\DPPL\DPPL Format A.doc

COMMERCIAL CORRIGENDUM NO. 2 - gailebank.gail.co.in · COMMERCIAL CORRIGENDUM NO. 2 TO ... attached...

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