Request for Quote (RFQ) for Ferro Molybdenum - … Mo.pdfRequest for Quote (RFQ) for Ferro...

Steel Authority of India Limited ALLOY STEELS PLANT

Tender No: SAIL/ASP/Fe MOLY/2013-14/CPA/I Page- 1/39

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Request for Quote

(RFQ)

for

Ferro Molybdenum

Tender No : SAIL/ASP/Fe Moly/2013-14/CPA/I

Dated: 22th June ’2013

STEEL AUTHORITY OF INDIA LIMITED

ALLOY STEELS PLANT DURGAPUR-

713208

INDIA



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DURGAPUR, INDIA

MATERIALS MANAGEMENT DEPARTMENT

ECC no : AAACS7062FXM025 Tel : 0343- 2545301, 2545277,

WBST Regn no :

19800047110

email: [email protected]

CST Regn no : 19800047207 Fax : 0343-2545301,2545277

VAT no : 19800047013 website : www.sailtenders.co.in

GLOBAL TENDER ENQUIRY (RFQ)

Ref No:SAIL/ASP/Fe MOLY /2013-14 /CPA/I Dated: 22/06/2013

Steel Authority of India Ltd., Alloy Steels Plant intends to procure Ferro Moly for various units under Steel Authority of India Limited as under and as per the detailed terms and conditions mentioned in enclosed Annexure :-.

1- Alloy Steels Plant, Durgapur,West Bengal referred hereafter as ASP

2- Salem Steel Plant , Salem referred hereafter as SSP

3. Visvesvaraya Iron & Steel Plant , Bhadrvati, Karnataka referred hereafter as VISL 4. Rourkela Steel Plant, Rourkela, Odisha referred hereafter as RSP

Intending tenderers are requested to submit their offers complete in all respect as per the terms and conditions enclosed herewith by Due date of submission.

B.Sai Shanker

AGM (Purchase)

For General Manager (MM)



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Content Page No.

Part A

Section I (Overview of the RFQ)

1.01 Purchase cost reduction objectives at SAIL 4 1.02 Key Features in purchase process 4 1.03 Advantages for Suppliers 4

1.04

Summary of requirement for 2013-14

4 1.05 Eligibility criteria & Ground Rules 5 1.06 How to fill up the bid 8 1.07 Summary of evaluation Methodology 10 1.08 Pricing Formulae 12 1.09 Order Distribution 14 1.10 Key contact 14

Section 2 Technical Specification of Ferro Moly & Requirement 17

Section 3

Other Commercial Terms 18

Part- B

Form A - Format for acceptance of all terms 28 Form B - Format for Technical Confirmation 29 Form C - Details by Overseas Vendors 30 Form C - Details by Indigenous Vendors 31 Form D - Basic Information of Vendor 32

Earnest Money Bank Guarantee Format 34



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PART-A

Section 1 – Overview of the RFQ

1.01 Purchase cost reduction objectives at SAIL:

♦ Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines.

♦ SAIL’s turnover was more than Rs 47,000 Crores ($10 Billion approx) with a production capacity of over 13.5 million tonnes (MT) of Crude Steel in 2010-11.

♦ SAIL is currently undertaking a company wide initiative – Purchase Cost reduction Module (PCRM) – to reduce the cost of its purchases. The objectives of this initiative are to reduce the Total Cost of Ownership (TCO) of the purchased items while maintaining or improving their quality, services and delivery. At the same time, SAIL is using this initiative to establish long term relationships with key suppliers.

1.02 Key Features in Fe Moly Purchase Process

• Coordinated purchase by SAIL Plants / Units ( ASP,RSP,VISL)

• Rationalised / Common Specification of items. 1.03 Advantages for Suppliers

For suppliers, the opportunities are –

• Increased capacity utilisation. • Achieve better economies of scale in raw material buying.

• Business opportunities with all SAIL units. 1.04 Summary of Requirement

The combined requirement of Ferro Moly for SAIL Plants/Units against the RFQ for a period of Nine months is 239 T (Current requirement is for ASP, RSP & VISL) approx.

We have Nine monthly (Jul’13 – Mar’14) tentative requirement of 239 MT of Ferro Molybdenum to be procured for SAIL Plants. The detail of specification & lot wise requirement is indicated in Section-2 of the RFQ. The techno commercial terms and conditions after evaluation shall be frozen for nine months period from the final date of opening of the offers and price discovery shall be done through reverse auction / opening of on-line sealed bid with

decrement in the 1st

three months phase and through reverse auction in the 2nd

& third three months phases.

Techno-commercial bids shall be frozen for full quantity for supplies during nine month period (July’13 to March ’14). Orders shall be finalised periodically for 3 months requirement . Periodic reverse Auctions on three monthly basis shall be held with vendors whose techno-commercial bids are found acceptable and frozen for n ine months . The tentative requirement for each three monthly cycle will be approx 80 MT , however the exact quantity shall be informed before RA is conducted for each cycle.

Delivery is to be made for ASP (Alloy Steels Plant, Durgapur, West Bengal), VISL( Visvesvaraya Iron & Steel Plant, Bhadravati, Karnataka. & RSP (Rourkela Steel Plant, Odisha).

The Specification, delivery and quantity required are shown in the ‘Ferro Moly Requirement’

(Section 2 of Part A). The projected quantities are estimated based on projections of Steel

Production, Inventory level and usage. Hence these quantities represent our current estimates

and may be revised prior to price bid opening / Reverse Auction (RA).



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1.05 Eligibility Criteria /Ground Rules for Participation:

1.05.1 Eligibility Criteria :-

a) Following eligibility criteria shall be applicable for tenderers offering material

i) Tenderer should be either an overseas Producer of Ferro Moly / Moly or their

authorised overseas selling arm for Direct Supply. (An Indian agent can submit offer on

behalf of only one foreign principal. Order shall directly be placed on the overseas principal.

The authorisation letter of overseas principal / foreign principal to this effect is to be

submitted .In case the said foreign principal also submits offer directly against this tender,

offer of the foreign principal shall only be considered.)

Or

Tenderer should be an Indigenous Producer of Ferro Moly/ moly having manufacturing

Unit in India. (EOU eligible to supply in DTA subject to aforesaid criteria may be considered

with payment in INR)

ii) Tenderer must be ISO 9001 certified unit for Ferro Moly /Ferro Alloys/Moly

iii) Tenderer shall submit EMD for Rs.9,50,000/-(Indian Rupees Nine Lakhs Fifty Thousand only) or USD 19,000 (US Dollar Nineteen Thousand Only) by way of Demand draft/ pay order / Banker’s cheque drawn in favour of SAIL ,a/c Alloy Steels Plant, payable at Durgapur or in form of Bank Guarantee from any Scheduled Bank having RBI Clearance (Excluding co-operative Banks & Gramin Banks). Bank Guarantee should have validity of 12 months from date of Tender Opening against this tender enquiry as per format enclosed on the stamp paper of appropriate value purchased in the name of bank. (BG should be as per format enclosed.)

iv) Tenderer will have to offer for all lots, otherwise their offer will not be considered.

v) Tenderer will have to quote for a minimum 40 % of the RFQ quantity.

vi) Tenderer will submit online sealed price bid [containing only premium or discount applicable as per pricing formulae (in Rs per Kg of Mo content for domestic quotations & USD or Euro per Kg for international quotations)] on the platform of M/s Mjunction and proof of the same should be attached as Part-2 of Tender Document.

b) Tenders not satisfying the above Eligibility criteria shall stand rejected. SAIL’s decision in this

regard shall be final. Tenderers shall have to provide details in respect of the eligibility criteria

along with techno-commercial bid. 1.05.2 Ground Rules :-

i) The quotations received after due date & time will be rejected.

ii) Tenders without the acknowledgement copy indicating the successful submission of online sealed price bid (printed from Mjunction website after submission of sealed price bid) shall be treated as incomplete and shall be out rightly rejected. If any vendor submits online sealed price bid in time but fails to submit complete tender documents as per RFQ by due date and time to ASP (in 3 parts), the online sealed price bid of such vendors shall be considered as unsolicited and rejected. No request whatsoever in this regard shall be entertained.



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Techno-commercial bid confirming acceptance of all terms and conditions of the RFQ is to be submitted with requisite documents. A copy of this RFQ duly signed by the authorised representative of bidder should be submitted with Techno-commercial bid.

Validity of the Offer Techno-commercial bid should remain valid for acceptance for Nine months period i.e. upto March 2014 ( or extended period against the RFQ as may be ) and price bid for each cycle should remain valid for 30 days from the date of Reverse Auction.

Vendors whose Techno-commercial bids are accepted against the enquiry , if fail to submit price bid in any of the cycle ( in RA) , will be considered as defaulting tenderers and their EMD will be liable for encashment by SAIL . Also they will not be considered for subsequent cycles without prejudicing right of SAIL to recover any other amount due from these vendors for orders placed in previous cycles

iii) EMD -The EMD should be given along with Techno-commercial bid in a separate cover duly super

scribed. No request for adjustment of previous dues shall be entertained. offers received without EMD shall be summarily rejected. The EMD shall be forfeited in the event of the tenderer failing to abide by any of the conditions referred to in their offer or of tenderer withdrawing offer prematurely or modifying the original tender after tender opening unless otherwise desired by SAIL. Also if tenderer fails to commit supplies in the event of order placed on him, SAIL reserves right to forfeit Earnest Money deposited by him without prejudicing the right of SAIL to take other contractual actions as may deem be necessary. The decision of SAIL shall be final and binding in this regard.

EMD shall be retained up to finalisation of all orders for all cycles against the tender. However For successful bidders, The EMD of such bidders shall be released on completion of Order placement for all three cycles without any financial charges whatsoever.

iv) Offers including price bid should remain valid for a period of 30 days from the date of tender opening. The price determined through reverse Auction shall also to remain valid for 30 days from the date of Auction.

v) The price evaluation shall be done considering RFQ quantity & on 60 % Mo content basis . The Vendor ranking shall be decided on WALCNCNS price basis.

SAIL also reserves right to engage one or more than one source against this RFQ splitting total order quantity finalized for order.

vi) For direct import, SAIL Plants will reserve right to release backup orders on FOB Load Port or on CFR

Discharge port at their option. Tenderers have to provide Both CFR as well FOB rates along with ocean Freight.

vii) For Indigenous supply, Orders shall be released on FOR Respective Plant basis (ASP or VISL as applicable).

viii) There may be some variations in delivery requirement by the respective SAIL Plants. The same shall

be intimated prior to starting of Q.P. for the due delivery. ix) The total Order quantity may vary by 10% of The RFQ quantity at buyer’s option, to be exercised at

the time of finalisation of order. x) Payment for direct Import Order shall be made to the overseas principal supplier through banking

channel in foreign currency (preferably in USD) after deducting Indian Agency Commission, if any. For Indigenous supplies, payment will be made in Indian Rupees.

xi) SAIL reserves right to conduct Reverse Auction or opening of only online sealed price bids of

accepted techno-commercial vendors. In case of Reverse Auction, Online Sealed Price bids shall be opened at the beginning of Reverse Auction. The H-1 bidder of sealed price bid among the techno- commercially acceptable vendors may be excluded if the number of such acceptable vendors is more than X+4 where X is the number of vendors( sources) to be considered for order placement against the RFQ . The Reverse Auction shall continue with such remaining vendors.



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In case for any reason ,if there is no further bids received in RA as per above, SAIL/ ASP reserves right to consider Online Price bid of techno-commercially acceptable vendors for order finalisation ( excluding H-1 bidder as per above) .



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The Reverse Auction shall be conducted on weighted average on LCNCNS basis. Price break up indicating material cost, freight Rate, Sales Tax on PMT basis shall have to be provided by the bidders after Reverse Auction.

1.06 How to fill up the bid It shall be the responsibility of the persons submitting the tender to ensure that the tenders have been submitted in the formats and as per the terms and conditions prescribed in the SAIL Website and no change is made therein before submission of their tender. In the event of any doubt regarding the terms and conditions/formats, the person concerned may seek clarifications from the authorized officer of SAIL. In case any tampering/unauthorised alternation is noticed in the tender submitted, from the Tender Document available on the SAIL Website, the said tender shall be summarily rejected and the company shall have no liability whatsoever on the matter. However, deviation if any proposed by the tenderer may be separately indicated for acceptance or otherwise of SAIL. Such proposed deviation will not be treated as tampering for the purpose of application of this clause.

1.06.1 The tender is to be submitted in three parts –

Part-1: Earnest Money deposit of Rs 9,50,000/- or $ 19,000 (EMD) as per clause 1.05.2 (sub

clause iii). Tenders not accompanied by requisite earnest money, shall be treated as invalid.

Request for EMD waival will be applicable as per the extant guidelines applicable.

Part-2 : Acknowledgement of On Line Price Bid Submission

Printed Acknowledgement of online submission of Price bid on the Mjunction’s website

(without any indication of price), duly signed by the tenderer to be submitted in Part-2

The process of submission of Online Price bid is as detailed hereunder-

Step 1: Login to http://buyjunction.in

Step 2: Click on the Auction link under “Open Tenders”

Step 3: Existing users can login with their user id and password.

New users would have to register for a user id & password on the site

Step 4: Read through the “Bidding Procedure” to proceed further for bidding and place your

online sealed price bid

Step 5: Take a print-out of the receipt confirming that the online sealed price bid has been

submitted

Steps to take a print-out of the Acknowledgement

1. Once you have placed your bid, to download Bid Receipt, kindly click on “Download”.

2. Then click on “Bid Receipt for Open Tender”.

3. Select the auction to generate receipt (Acknowledgement). (Please ensure that the online sealed price bid contains only the premium/

discount in Rs per Kg of Mo content on FOR respective plant for indigenous

supply and in USD or Euro per Kg of Mo content on CFR discharge port for

overseas supply offers. Packing

/forwarding, freight or any other charge if payable extra by SAIL, should be

mentioned in techno-commercial bid. For overseas supply, the ocean freight rates

on per T of material basis should be indicated in techno-commercial bid along

with port of loading)



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NOTE: The Online Sealed Price bid should be submitted on Mjunction’s’ Website latest by

11.00 am on 0 9 / 0 7 / 2 0 1 3 & acknowledgement of the same to be submitted in part-2 of the Tender.

Part-3 : Techno-Commercial Bid : comprising

� A copy of this RFQ, duly signed by the competent authority with company seal of the tenderer , as a token of acceptance of terms and conditions of enquiry and a confirmation that they have understood all terms and conditions .

� Supportive Documents for Eligibility Criteria as per details mentioned above in clause 1.05

� The following documents should be submitted with techno-commercial bid :- o Details of Manufacturing for a producer o In case of Selling arm, a copy of Authorisation by Producer of the material o A copy of agency agreement between vendor submitting offer as Indian Agent & their

overseas principal is also to be provided. o A copy of current Valid ISO Certificate. o List of Orders for successfully supplying material to SAIL / other clients in India.

� Tenderers’ status , Company Profile, True Excise Registration copy , Installed capacity details ,Production details and true copy of Registrar of Company’s certificate

• Packing / Forwarding charges & Freight charges, if payable extra, will be payable on per T of material. Tenderer will specify the same in their techno-commercial bid .The applicable rates for Duties and taxes shall be indicated in techno-commercial bid.

• For overseas supply, the ocean freight on per T of material and the load port should be indicated. The same will be considered in case of order is placed on FOB basis.

� Offered Quantity against RFQ , Monthly supply 1.06.2 All parts shall be kept in separate sealed envelops clearly super scribing on top the enquiry No., Part

no, Tenderer name and date of tender opening. Submit all parts simultaneously in a bigger sealed envelop clearly super scribing on the top the tender enquiry reference number, date of tender opening & Tenderer’s name. In the event of tender received in single part and not meeting the requirement of separate sealed covers, the tender shall be summarily rejected.

Note : The EMD , techno-commercial bid, Acknowledgement of Price bid parts should not contain

prices or any indication of prices. If the prices are indicated there, the offer will be

rejected.

1.06.3 Last date and Time for Receipt of Tenders:-Complete Bids may be sent by post / courier

with sufficient margin for delay or be deposited in the tender box placed in Purchase

Coordination Room at 2nd floor of Mishra Ispat Bhawan, Alloy Steels Plant, Durgapur-

713208, West Bengal, India so as the same is received by 12.30 hrs on 09/07/2013. Bids

submitted/received later than this time and date, or bids submitted at any other location will

not be considered. Please send your bids addressed to:

The General Manager (MM),

Commodity Champion – Moly

Steel Authority of India Limited



10

Alloy Steels Plant

Durgapur, West Bengal, India 713208

1.06.4 Tender Opening Date & Time :-Tenders shall be opened at 14.30 hrs on 0 9 / 0 7 / 2013 subject

to meeting the criteria of receiving minimum number of offers for tender opening as per prevailing procedure of SAIL .The tenders shall be opened in presence of authorised representatives of such tenderers who might choose to be present at the time of opening. Signatures of authorized representatives of the firms present during tender opening shall be obtained. If a person represents more than one tenderer while witnessing the tender opening, the same shall be recorded.

1.06.5 Any modification to the original tender, unless asked for, after due date of opening, shall be treated as unsolicited and rejected.

1.07 Summary of Evaluation Methodology-

The bid evaluation process will comprise of three steps -

♦ Step1: Checking and acceptance of EMD & acknowledgement of online price bid submission.

♦ Step 2: Techno-commercial evaluation.

♦ Step 3: Conduct of Reverse Auction / Preparation of CS for order finalisation. 1.07.1 Step 1: Checking and acceptance of EMD as per specified in RFQ & confirmation that party has

submitted online price bid by specified date and time on Mjunction’s website. Tenders received without acknowledgement of online submission of Price bid shall be out rightly rejected.

1.07.2 Step 2: Techno-commercial evaluation:

The techno-commercial evaluation process will comprise of two steps to be carried out simultaneously – technical evaluation & commercial evaluation.

1.07.2.1 Technical evaluation

The technical evaluation process will comprise the following steps –

• The SAIL will study specifications submitted by each supplier and check for any deviation from RFQ specifications. In case of deviation, SAIL may ask for clarifications on the same. In case the clarifications are not acceptable to SAIL, the bid may not be accepted.

• SAIL will evaluate capacity and capabilities of technically acceptable suppliers. It will then

specify the maximum quantity that can be allocated to each tenderer.

• The capacity capping as well maximum number of sources to be engaged for order placement shall be finalised at the time of techno-commercial evaluation.

• SAIL reserves the right to reject the offer of such tenderers who have failed in past to supply the

material /non- complying with the ordered terms issued by SAIL plant.

1.07.2.2 Commercial Evaluation

As part of the commercial evaluation process, SAIL will check whether Tenderers have agreed

to the commercial terms specified in this RFQ & if they qualify on Eligibility criteria as stated in

RFQ.



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In case of non-agreement, clarifications may be sought from the tenderers. If the clarification is

not found acceptable, the offer will be liable for rejection.

1.07.3 Step 3: Price Determination : After the techno-commercial evaluation, a list of eligible tenderers will be made. The price

determination may be done through Reverse Auction or on the basis of Online Sealed price bids

after excluding H-1 bidder as stated earlier in Ground rules clause xi. 1.07.3.1 Criteria for determining LCNCNS

i) The LCNCNS price will be computed as follows-

a) For DOMESTIC SUPPLIERS (Including Export Oriented Units (EOU) eligible to supply in Domestic Tariff Area):

The Landed cost net of cenvat (LCNCNS) will be worked out considering the Base Rate of Mo

per Kg as per ‘MetalBulletin’ (MB) for “Molybdenum Metal Cash World Official London

Metal Exchange $ per tonne” multiplied with exchange rate plus/Minus Premium or

Discount on per Kg of Mo content ( as offered by tenderer) *600 +Packing & Forwarding

charges on Rs/T of material , if payable extra and quoted separately + ED with cess as

per applicable rate + ST/VAT (2% CST against form or VAT as applicable) + Freight in Rs /T

of material if payable extra & quoted separately by tenderer + Entry Tax ( as applicable, but

payable directly by the plant) less CENVAT less VAT setoff to the extent same is available to

various units. (Present rate of Vat set off applicable for ASP is 50% of the VAT paid. Exact rate

at the time of opening of price bid as prevailing shall be applicable). (Entry Tax for material

entering into West Bengal is applicable presently @ 1%).

(For Tenderers as EOU supplying to DTA applicable custom Duty etc will also be

considered while evaluating LCNCNS price. The Custom Duty / CVD shall be paid by them on

behalf of SAIL and will be reimbursed subsequently)

b) For OVERSEAS SUPPLIERS (DIRECT IMPORT):

The Landed cost net of cenvat (LCNCNS) will be worked out considering the Base Rate of Mo

per Kg as per ‘MetalBulletin’( MB) for “Molybdenum Metal Cash World Official London

Metal Exchange $ per tonne” plus/Minus Premium or Discount on CFR Discharge Port /Kg of

Mo as offered by tenderer * 600 * Exchange rate + marine insurance on warehouse to

warehouse basis (@ 0.0248% of CFR Price) + Landing charges (@ 1%) + Customs Duty +

Antidumping duty (if any) + CVD with Education cess + Education Cess on Duty of Customs

+ Special Custom Duty @4% + Banking Charges for payment against Documents (CAD) +

inland freight considered from Kolkata port to ASP ( for evaluation only) considering

transportation by road in 20’ container on full container load + Interest loading for 45 Days

for total cost of material with Taxes and duties ( for comparison with domestic supplier’s

payment term i.e. against GARN in 30 days ,to bring at par) + Port clearing agent’s charges /

any other charges/taxes as applicable till material reaches plant store site LESS cenvatable

CVD with Cess & SCD & cess. (Entry Tax for material entering into West Bengal is applicable

presently @ 1%).

(Interest loading for Import case for 45 days shall be done at Prime lending rate for payment

against CAD in 30 days .The prevailing Bank rate is 12.25% p.a.)



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ii) The evaluation of LCNCNS rates shall be done at the prevailing rates under various heads as

indicated above and if there is any change in the same, it shall be communicated to eligible

tenderers before price bid opening. If required loading in price for different payment term

/packing or any other deviation shall be done & will be informed to tenderers.

iii) For evaluation, Base rate of Mo shall be the average price per kg of Mo as per MB

(METAL BULLETIN) for “Molybdenum Metal Cash World Official London Metal Exchange

$ per tonne” during the previous fortnight of price bid opening.

iv) The Exchange rates as per available on the RBI website or closing TT selling exchange rate ( Rs/USD) on the previous working day of the date of price bid opening as published in ‘The Economic Times’ (Kolkata Edition) or as ascertained from any Authorised Dealer Bank of RBI as applicable, shall be considered.

v) Besides the details of the factors which will be used in the calculation of Landed

Cost Net of Setoff, Hedging Cost shall also be considered for price bid evaluation of Overseas suppliers. The methodology for including the Hedging Cost is explained below :-

Hedging Clause: (For Overseas suppliers)

The methodology for including the Hedging Cost is as under :-

On the date of Opening of Price Bid/RA, RBI reference rate shall be considered for exchange rate

conversion and the Forward Premium rate would be added for the period i.e. date of opening of price

bid/RA and date of scheduled delivery of the shipment. In case of staggered delivery the forward

premium rate of the average period would be considered.

vi) After arriving at overall weighted average LCNCNS prices , tenderers shall be ranked accordingly. Lot wise L-1 LCNCNS rates will then be offered to all tenderers including overall L-1 tenderer for the lot where its price is not L-1. The order distribution shall be done as per original ranking of vendors as above on overall weighted average basis and quantity distribution shall be done as per procedure.

1.07.3.2 For ASP & RSP, the port of Discharge shall be Kolkata. F or VISL , port of Discharge shall be Chennai. 1.08 Pricing Formulae: - Price shall be payable on ‘Mo’ content within the specified range of ‘Mo’ as

per the following pricing formulae -

“ Average (of all Low Prices and High Prices) of Mo Price per Kg as published in ‘METAL BULLETIN’ for “ Molybdenum Metal Cash World Official London Metal Exchange $ per tonne “ during the Q.P. plus / minus premium/ discount as offered by Tenderer. “

Q.P. ( Quotational Period) :-The Q.P. shall be the previous fortnight (F-1) of the fortnight when delivery is scheduled to be made as per Purchase order.

( for example if the schedule delivery as per Purchase Order is during 1-15 th of calender month ( i.e. in the 1

st Fortnight of the month) , the Q.P. shall be 16 th to the end of the immediate previous month

( both days inclusive) and for delivery due during 16 th to end of the month (i.e. in the 2nd

Fortnight) , Q.P. shall be 1 to 15 th of the due month of delivery .)

(a) The Q.P. shall however be unknown at the time of placement of order. In case acceptance letter is issued with delivery schedule for which relevant Q.P. fortnight has already commenced as per above ( normally it may happen for the first lot against order) , the Q.P. shall be considered from the next date of acceptance letter/LOI upto the end of the Q.P. fortnight. For subsequent delivery, Q.P. shall remain unchanged as per normal stated earlier. In case , to meet any urgency, if first delivery is asked by SAIL in the fortnight of Q.P. then the average during next date of LOI upto the end of the fortnight shall be applicable .

( e.g. if LOI/ Acceptance letter is issued on 7 th Aug’11 and first delivery is asked in second fortnight of

August’11 then Q.P. considered for this lot shall be unknown average from 8th

Aug’11 to 15 th Aug’11. In



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case the MB average for Mo during this period is USD 40 /kg and Discount offered is USD 5 per Kg , the price payable for supplies shall be USD 35 per KG of Mo content.

In case to meet any urgency, SAIL asks to prepone delivery in 1st

fortnight of Aug’11 and agreed by supplier, then also the same Q.P. as per above ( i.e. 8

th Auf to 15 th Aug’11) shall be considered and

price payable shall be as worked out above i.e. USD 35 per Kg Mo content )

(b) In the event of failure by the supplier to deliver material within the scheduled fortnight, pricing shall be based on average of Mo prices during fortnight previous to the fortnight of actual delivery or the



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average of Mo prices during previous fortnight (Scheduled Q.P.) of the scheduled fortnight of delivery , whichever is lower .

For example if Schedule delivery is in 2nd

fortnight of Aug’11 and delivery is made on 1st Sept’11 ( B/L date or Date of receipt of material at respective SAIL plant ) & if

MB average for Mo during 1-15 th Aug’11 ( Scheduled Q.P.) is USD 39 per Kg &

MB average for Mo during 16-31 st Aug’11 ( F-1 of actual delivery) is USD 35 per Kg

then the average price of Mo being lower during 16 th to 31 st Aug’11 fortnight , The price will be paid considering F-1 of actual delivery instead of scheduled Q.P i.e. price will be paid considering MB average of USD 35 per Kg Mo.

(c) For Domestic supplier/DTA/EOU suppliers, Payment will be released in Indian Rupees & the

price of Mo during the Q.P. as per Metal Bulletin as detailed above shall be multiplied by

average Exchange Rate as per R.B.I. prevailing during the same Q.P. plus/minus premium/

discount as offered by tenderer on per Kg of Mo content basis ( supplier will submit necessary

documents Like MB average, RBI exchange rates to respective finance department along with

their Invoice for payment)

(d) For delivery compliance against schedule delivery, Date of Bill of Lading will be

considered for direct Import and Date of receipt of material at respective SAIL plant

stores will be considered for indigenous supply .

1.09 Order distribution

SAIL reserves right to engage one or more than one tenderers for order placement against this RFQ at its discretion. The distribution of quantity shall be done as per SAIL procedure on predetermined number of Vendors based upon their ranking against RFQ.

The distribution of order will be in the descending order as per the original ranking of the

tenderers worked out on overa l l we i ghted average p r i ce . The overa l l L-1 tenderer

will get the highest share and the last ranked tenderer within which the total order is to be

distributed, will get the smallest share, subject to the matching L-1 price as detailed earlier &

subject to capping limit of individual tenders or quantitative restriction decided by SAIL , if any.

The distribution of order quantity shall be done as per the SAIL guidelines. The prevailing guidelines are as below :-

No of vendors to be engaged Ratio for distribution of quantity

Two Party : in ratio of 70: 30 ,

Three party in ratio of 60:25:15

Four party in ratio of 50:25:15:10 & so on.

1.10 Key contact : For further details ,followings may also be contacted

NAME & DESIGNATION ADDRESS

Shri Ashok Kumar General Manager (MM) Steel Authority Of India Limited

Materials Management Department, Mishra Ispat Bhavan, Alloy Steels Plant



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Alloy Steels Plant, Commodity Champion

Durgapur – 713208 , West Bengal , India

Phone: (91)-343- 2545199 Fax : (91)-343-2545301, 2545277 E-mail: [email protected]

2. Sri S.Banerjee

Dy. General Manager ( MM-Pur/SB) Tel

(M) 9434798813 /Fax : 0343 2545305

1.10.1 Other terms & conditions of tender:

• Offers should be either fully typed or fully handwritten. Partly typed and partly hand written or overwritten offers are liable to be rejected.

• In case of mismatch in description of quantity/ amount in figures and words, the description in words shall be considered.

• SAIL reserves the right to accept any tender in whole or in part, or reject any or all tenders without assigning any reason, whatsoever.

• Price shall be payable on Mo content basis limiting payment to the max. % of the range for Mo as specified . Material having Mo content more than upper limit, may be accepted but payment will be restricted to the max of the range only.

• Copies of the offer should not be sent to any other officer of SAIL.

• The Purchase Preference to Central Public Sector Enterprise shall be based to the extent

of guidelines issued by the Government of India.

• The tenderer must declare whether the proprietor or any partner of the firm, or director of their company, has any relation with any employee working in SAIL, if so give the name of the employee and the relationship and also whether any of them has a relationship within the meaning of section 6 of Companies Act, 1956 with any directors of SAIL and, if so, give details.

• SAIL reserves the right to ask for further proof regarding the status/position of supply as well as establishment of an acceptable source, if required, during the finalisation of the tender.

• SAIL reserves the right to inspect the materials at destination. Materials not confirming to the specifications shall not be used and shall lie rejected at the risk and cost of seller and the seller shall be informed of such rejection and action as per standard practice of respective SAIL Plants including replacement of rejected material. The supplier shall lift the rejected material within sixty days of intimation at his own cost, failing which SAIL may dispose off the rejected material at its discretion and will stand absolved of all responsibilities towards the supplier for rejected material.

• In the event of failure to supply the goods or part thereof as per specification within the contracted delivery period, SAIL reserves the right to cancel the contract in full, or part thereof, and, if so, to purchase the goods from alternate source at the risk and cost of defaulting supplier,

• Cost of Bidding: The bidder shall bear all cost associated with the preparation and submission of its bid, and the Steel Authority of India Ltd. Herein after referred to as “The



16

Purchaser” will in no case be responsible or liable for those costs, regardless of the condition or outcome of the bidding process.

• Amendment to RFQ: Any extension of due date of submission or change in scope etc shall be available only on website and may not be published in newspapers. At any time prior to the deadline for submission of bids, the purchaser may, for any reason, whether at its own initiative or in response to a clarification requested by a bidder, modify the RFQ by issuing an amendment.

• Liquidated Damages : For delivery beyond the date agreed L.D. , not by way of penalty shall be levied at the rate of 1.0% of the contract value of goods for every delayed month or part thereof subject to a maximum of 5% as per SAIL/P-1.

• Language of Bid : The bids prepared by the Bidders and all correspondence and

documents relating to the bid exchanged by the Bidder and the Purchaser , shall be written only in English language, provided that any printed literature furnished by the Bidder may be written in another language so long as it is accompanied by an English translation of its pertinent passage in which case, for purposes of interpretation of the bid, the English translation shall govern.

• Late Bids: Any bid received by the Purchaser after the deadline for submission of the Bids prescribed by the Purchaser, will not be opened.

• Modification and Withdrawal of Bids:

- The bidders may modify or withdraw its bid after the submission of bid, provided that written notice of the modification or withdrawal/ modification is received by the Purchaser prior to the deadline prescribed for the submission of bids.

- No bid may be modified subsequent to the deadline for submission of Bids unless asked for.

Clarification of Bids: To assist in the examination, evaluation and comparison of Techno-

commercial bids, the purchaser may, at their discretion, ask the bidder for a clarification of

the bids. The request for clarification and the response shall be in writing.



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SECTION –2 (PART-A)

Quantity, Delivery & Specification of Ferro Moly Required :-

2.1 Projected requirement in Tonnes – ( Total Requirement against RFQ : 239 T)

Lot - 1 Ferro Moly for ASP

for Alloy Steel Plant (ASP) :

Projected requirement (July’13 to March’14) : 1 4 6 T Requirement for July’13 to Sept’13 : 50 T Delivery : 18 T in July’2013, 16 T in August’13, 16 T in September ‘13 Lot - 2 Ferro Moly for VISL

for Visvesvaraya Iron & Steel Plant (VISL) :

Projected requirement (July’13 to March’14) : 4 0 T Requirement for July’13 to Sept’13 : 15 T Delivery : 5 T in July’2013, 5 T in August’13, 5 T in September ‘13 Lot - 3 Ferro Moly for RSP

for Rourkela Steel Plant (RSP) :

Projected requirement (July’13 to March’14) : 4 0 T Requirement for July’13 to Sept’13 : 16 T Delivery : 6 T in July’2013, 5 T in August’13, 5 T in September ‘13

( The delivery for July’13 will be in 2nd fortnight and for rest of the months it shall be first

fortnight of every month as indicated above, unless advised otherwise by SAIL)

2.2 Specifications Ferro Moly Having

Mo

: 60% Min and 65% Max

C : 0.1% max

Si

: 2% max

Al

: 0.5% max

P

: 0.06% max

S

: 0.06% Max

Cu

: 0.60% max

Packed in 100/200 Kg net sea worthy sealed steel drums palletised and cross wise strapped upto 2 MT

Size : size 10-50 mm . Max 5 % by weight can be undersize.

Marking :- On packing following marking should be given :-

“Ferro Moly. , Mo %, Supplier’s Name in abbreviated form

SAIL- ASP, Package No. , Gross & Net Weight”

Note : ‘Mo’ content found above the upper limit of range

specified, can be accepted without any extra payment (

Payment shall be restricted to upper limit of range).



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SECTION 3 (PART A)

Other Commercial Terms

3.01 Price Term : 3.01.1 Domestic : on FOR Respective Destination SAIL Plant inclusive of packing & Forwarding ,

Road transportation ,Insurance etc. 3.01.2 Direct Import : on CFR Discharge port ( Kolkata port for ASP & RSP and Chennai port for VISL)

as per INCOTERMS in suitable packing inclusive of all costs in seller’s country, 3rd

party Inspection charges & inclusive of Indian agent commission if any.

Tenderer shall provide price break up including FOB despatch port price along with freight component . SAIL at its option reserves right to place order on FOB despatch Port basis after deducting freight element from the finalised CFR price.Country of Origin, Load port/ Dispatch Port and each container load to be indicated in techno-commercial bid.

3.02.(a) Security Deposit/Performance Guarantee Bond:

a) Mode : On acceptance of the offer/bid, the successful tenderer shall furnish security

deposit / PERFORMANCE GURANTEE BOND within a period of 10 days from the date

of A/T to the extent of 5% (five percent) of the basic value of order either in the form of

Demand draft / Pay order / Banker’s Cheque issued by any Scheduled Bank except Co-

operative and Gramin Banks drawn in favour of SAIL/Alloy Steels Plant and as per proforma

provided at Annexure shall be accepted provided it is payable at any RBI Scheduled

Commercial Bank at Durgapur OR

In the form of Bank Guarantee issued by any RBI scheduled commercial Bank other than co-

operative & Gramin bank, having branch at Durgapur, drawn in favour of SAIL/Alloy Steels

Plant, shall also be accepted as per proforma provided in Annexure of the tender document

(The BG issuing branch should send the BG directly to the KEY CONTACT given in

RFQ/Tender Notice with a covering letter by REGISTERED POST.

In exceptional cases where BGs are sent through the seller an unstamped duplicate copy of

the BG should be directly sent to the KEY CONTACT given in RFQ with a

covering letter by REGISTERED POST to compare with original BG submitted by

tenderer in the closed bid.)

b) Waiver: (Micro or Small Scale Enterprise registered with MSME for Ferro Vanadium and

Central Govt./State Govt. PSUS shall be exempted from submission of Earnest Money

Deposit)

c) Validity: Security deposit / PBG should be initially valid for a period covering contractual

delivery period plus SIX months from last date of supply. It shall be extendable till the

fulfillment of the contract in all respects for quality and specification including completion

of supplies.

2. Failure for submission of Security :

If the Supplier is called upon by the Purchaser to deposit “Security Deposit” and the supplier

fails to provide the same within the period specified, such failure will constitute a breach of

the contract and Purchaser may forfeit the EMD and take alternate procurement action at

the risk and cost of the supplier or action as envisaged in general conditions of contract of

SAIL i.e. SAIL P/1.

3.02 (b) Test & Guarantee Certificate: The Vendor shall submit their test certificate

showing chemical analysis, size and packing, in conformity with the purchase order.

For Direct Import 3rd party I/C shall be required at seller’s cost.



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The material supplied shall be guaranteed against poor quality, manufacturing defects. In the

event of the material being found defective on receipt ,the supplier shall replace the same

free of cost on DDP respective plant basis.

3.03 SUPPLY SCHEDULE : 3.03.1 Contract Period:-

The contract period for first three months’ requirement will be July’2013 to September

2013; for the second three months will be October 2013 to December 2013 and for the

third three months will be January 2013 to March 2013. SAIL reserves right to extend

delivery period by a maximum 3 months period to be exercised at least one month prior to

completion of indicated schedule.

Delivery of due quantity for every month may be asked in two or more lots spread over the

month / over two fortnights of the month. SAIL reserves right to prepone or postpone delivery

of any month or any fortnight, however decision in this regard shall be communicated before

commencement of the Q.P.

3.03.2 Delivery

The material has to be delivered as per the delivery schedule given by respective SAIL Plants. While issuing back-up orders, respective SAIL Plants shall give monthly/ fortnightly delivery schedules.

3.03.2 The time of delivery is the essence of the contract. For delivery compliance, the date of Bill of lading will be considered for direct Import and the date of receipt of material at respective SAIL plant stores shall be considered for Delivery compliance for indigenous supply.



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3.04 MODE OF DESPATCH : 3.04.1 FOR DOMESTIC SUPPLIERS: Material shall be dispatched by road. The seller shall be

responsible for making all transportation arrangements for timely supply of materials to meet the

delivery schedule. Materials shall be dispatched by road in full truckloads, fully covered.

Transportation shall be arranged by the supplier at their cost on door delivery basis. The supplier

shall arrange suitable transporter to ensure delivery in intact condition within a reasonable time.

3.04.2 FOR OVERSEAS SUPPLIERS:

Mode of dispatch shall be by Sea in container load ( 20 MT approx per 20’ end opening container

). Shipping Arrangements :-

For dispatches by sea, shipping arrangements will be made by the secretary, Shipping coordination

and chartering Division, Ministry of Shipping and Transport (transport wing) , Govt. of India, New

Delhi (Telegraphic address : TRANSCHART, NEW DELHI . Telex : VAHN ND 2312,2443 and 3104)

through their respective forwarding agents / nominees as mentioned below to whom adequate notice

of not less than six weeks about the readiness of cargo for shipment, should be given by the seller

from time to time for finalizing the shipping arrangements.

Country from which material being shipped Forward Agent/ Nominee

a) UK including Northern Ireland (also Eire) , The north continent M/S Schenker International Deutschland

of Europe namely West Germany, Holland,Belgium, France, GmbH, POB 110313 D-20403 , Hamburg, Germany

Norway, Sweden, Finland and Denmark & ports of the email [email protected]

Continental sea, board of the Mediterranean (i.e. French also Fax : 004940-36135509,Tel :0040-36135537

Adriatic Ports)

b) USA, Canada & Mexico M/S OPT Overseas Project

Transport Inc, 46 Sellers Street, Kearny,New Jersey

07032. (Tel 201-998-7771, Tlx 673-3586, Fax 201-9887833

c) Japan The First Secretary (Commercial)

Embassy of India ,

2-11 Kudan Minami, 2-chome

chiyoda- Ku

Tokyo 102

Tel : 03-3262-2391,Fax: 03-3234-4866

d) Australia The shipping Corporation of India Limited



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Shipping House, 254 Madame Cama road

Mumbai 400021 (cable : shipindia,Bombay)

e)South Korea Embassy of India

San-2-1,Rokwang-Dong,Yongsan-Ku

( Behind Bowling Centre)

Seoul, South Korea

Tel : 793-4142

f) Other Places not specified above Shipping Corporation of India Ltd

shipping House, 245 Madame Cama Road

Mumbai

Tel : 022-202666/ 2026785

The seller should arrange shipment of goods by vessels belonging to the member lines of the India-

Pakistan- Bangladesh conference. If the seller finds that the space on the conference lines vessels

is not available for any specific shipment, he should take up with India Pakistan Bangladesh

Conferences, Conferity house, East Grinstead,Sussex U.K. for providing shipment space and also

inform the shipping coordination Officer, Ministry of Shipping and Transport, New Delhi (cable :

TRANSCHART NEW DELHI, Telex : VAHAN ND-2312,2248,3104).

The seller shall send two sets of nonnegotiable copies of shipping documents to the secretary,

Shipping Coordination & Chartering Division, Ministry of Shipping and Transport (Transport Wing) ,

Government of India, New Delhi. The bill of Lading/ Airway Bill should be drawn so as to show ( Respective Plant however shall

indicate as applicable for them in their backup orders :-

Consignee : ( For ASP) At Indian port

i) The Branch Transport & Shipping Organisation Steel Authroity of India Limited, Balmer Lawrie Building

21 N.S.Road, Kolkata 700001

Cable : ISPATMOVE, Calcutta, Telex: ISPATCA-7456, Fax : 0091-33-

2435112

Ultimate Consignee : ( For ASP)

Dy. General Manager (S &I)



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Steel Authority of India Limited, Alloy Steels Plant, Durgapur 713208, West

Bengal, India The seller should avoid the use of over aged vessels i.e. not more than 25 years old vessel should

be engaged for the shipment of goods under the contract and if so used, the cost of additional

insurance , if any shall be borne by the seller. The vessel should be registered within approved

classification equivalent to the LLOYDS 100 AL. A certificate to this effect should be submitted

along with documents. The vessel should also be engaged in regular liner service. Material to be shipped in 20’ (end opening) closed containers on FCL basis. (Each FCL shall be

containing approx 20 MT of material if not otherwise indicated by vendor). (Purchase orders shall be

finalized on FCL basis)..

• 3.05 Packing & Markings:

Packing and marking for various lots shall be as indicated in Section 2 & it should be such that as is customary for export ,properly sealed and it should withstand ocean transit, handling at ports and transportation by rail/ road upto ultimate consignee.

Packing list mentioning the no of packages, item wise content of each package and the gross and

net weight of each package should be placed on the upper side of each package. Each package

must be marked clearly by indelible ink with the following information’s: -

• Consignee’s name and address in full

• Gross and net weight of each package, package number • Name of supplier

• Purchase Order no and date

• Description of material, batch no.

• Drums/ Bags etc. should be properly sealed and palletised and cross wise strapped upto 2 MT . • Phytosanitary (Fumigation ) certificate to be provided for wooden materials as per Govt. Of India Notification. The seller shall compensate the buyer for any loss sustained due to defective packing or marking of

the goods.

3.06 Inspection: 3.06.1 FOR DOMESTIC SUPPLIERS including DTA : Material shall be inspected after receipt of

material at respective Plant stores along with manufacturer’s test certificate conforming the order

specifications & Guarantee certificate indicating that the material supplied strictly conforms

to the order specifications and in case of any deviation material shall be replaced free of cost on

F.O.R. Respective Plant stores basis. If required, samples may be prepared in presence of tenderer’s representatives on receipt of

material , duly signed by tenderer’s representatives. Three such samples will be prepared and if any

deviation is found in analysis of material and the same is not acceptable to supplier, Joint testing/



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analysis may be done with the sample thus retained by the plant, the result of the same will be

binding on both party

Mo content found on analysis after receipt of material at respective plant or as per

supplier’s test certificate, whichever is lower ,shall be considered final for acceptance and

payment.

Wherever the material involves testing at supplier’s premises before dispatch, the tenderer

shall confirm that all testing charges shall be borne by them. In case SAIL representative is required

to inspect material at supplier’s premises, the supplier shall provide all testing facility, measuring

instruments properly calibrated from any government approved test house as per procedure .The

Inspection at Supplier’s premises shall not relieve the Supplier of the responsibility of replacing the

material free of cost, any defective materials ,which may be discovered at the Plant site by the

resp[ective Plants.

3.06.2 FOR OVERSEAS SUPPLIERS :

3rd

Party Inspection certificate :- Sellers shall provide certificate for assay, size,wt,sealing of bags,drums & containers. Neutral Third Party surveyors’ certificate for all parameters as above at the load port is also required from any of our listed agencies as under or their authorised associates ( appearing in prevailing Import Policy by Govt of India) at seller’s cost:-

a. Allex Stewart International Corporation BV , Rotterdam

b. Alfred H. Knight Ferrous Ltd., U.K.

c. Buraeu of Indian Standard, New Delhi

d. Beraeu Veritas

e. Director General, STQC Directorate, New Delhi

f. Gulf Inspection Agencies, Kuwait

g. Indian register Quality System, Mumbai

h. Inspectorate International Ltd, U.K.

i. American Quality Assurance India Pvt. Ltd, Hyderabad

Under the normal circumstances inspection certificate from 3rd party shall be the basis for

accepting the material at SAIL Plant’s stores. Respective Plant’s Inspection Deptt shall check the

third party inspection certificate & related documents at their stores. However SAIL Plants reserve

the right to make final analysis after receipt of material. In case of discrepancy , the same shall be

brought into the notice of Supplier/ Indian Agent within 30 days of receipt of material .

On receipt of such intimation, the seller shall forthwith and in any case within 15 days from the

date of such intimation depute his representative at his own cost for visiting the plant. Sampling of

the materials as well as testing shall be done by plants with its in-house resources, wherein the

supplier’s representative if so desires shall be present. The result of this inspection so done shall be

final and binding on both parties. In such case Mo content found after receipt of material at

respective plant or as per supplier’s test certificate /3rd Party I/C , whichever is lower ,shall be



21

considered final for acceptance and payment. In case of any dispute regarding deviation after

receipt of material at the respective plant , the matter will be amicably settled by the respective

plant and supplier and if required by associating the relevant 3rd party analyst.

3.07 SAMPLING & ANALYSIS

Samples shall be collected on representative basis and testing of material shall be done after

receipt of material at respective Plants by respective sections of Chemical laboratory as per

procedure prevailing in Respective Plants **. Details of procedure shall be specified in the backup

orders. The procedure at ASP as prevailing is as under. The same may however be as

prevailing at the time of Inspection after receipt of material- i) Chemical Analysis- Sample is collected by sampling section of R & C lab in presence of the

representative of S & I as per the sampling plan of R & C laboratory, The analysis result is

communicated by the R & C lab to S &I.

ii) Size Verification –For conformance of size of lump/ chips to the specification, about 5% material

of the lot, selected at random basis, is checked.

iii) In case of doubt arising during the above verification, further size analysis is carried out with

about 20% material of the lot,( selected at random basis) and actual percentage values ( by weight)

of oversize and undersize are noted. iv) S &I compares the results of chemical analysis and size distribution with the purchase order

specification and issue Acceptance/Rejection report to the stores Department. The test certificate

supplied by the Vendor is checked for conformance to order specification.

v) In case of any dispute raised by the vendor on the inspection results, joint sampling and analysis

is done in presence of vendor’s representative, S&I and R&C Laboratory. No request for joint

sampling is entertained after 15 days from the date of issue of Inspection Certificate. vi) Material with composition different from the order specification is not accepted. )

3.07.7 Rejection

Materials conforming to the specifications as mentioned in the Order only should be loaded.

Materials not conforming to the order , shall stand rejected and Supplier shall replace the rejected

material free of cost on DDP plant stores basis within the original delivery schedule or as advised by

the Plant. Supplier must remove the rejected goods within specified time period by respective SAIL

plants/ as per SAIL P-1.

3.07.8. Analysis Report

Respective Plants shall send the plant analysis report to the Seller separately for each consignment.



22

In case any dispute is raised by the vendor in writing on the inspection results & if agreed by respective Plants, joint sampling and analysis can be done in the presence of vendor’s representative at the plant’s RCL or reanalysis can be done by an umpire analyst , at the sole discretion of the buyer. The Umpire analyst will preferably be any Govt Test laboratory. The analysis result of such testing shall be binding and final for all-purpose for the buyer and the seller. The cost of joint sampling and analysis , and the cost of retesting shall be borne by the loser. The cost of joint sampling and analysis shall be calculated by RCL of respective Plants.

In case the supplier does not depute his representative within 15 days from the date of plant’s

intimation, respective Plant shall go ahead with the sampling & testing as per its internal procedure

and results shall be binding on both parties. If , however due to reasons beyond the control of buyer, the rejected material is not returned to the seller and consumed the decision of the buyer respective Plant shall be final for the purpose of settlement of such rejected material. In case the material is usable (as decided by user dept.), SAIL Plant at their discretion shall put up the matter to Material Review Board who will decide the amount to be recovered from the supplier and supplier shall remit that amount to the plant on receiving intimation from the plant. The seller shall provide additional rebate/diminution in price in subsequent invoice or by direct remittance to plant’s account.

If such deviations from A/T(Purchase Order) specifications persist in any 2 consignments (i.e.

Shipments), SAIL plant shall have the right to terminate the contract/ A/T(Purchase Order) without

prejudice to its rights under the contract.

3.07.09

Mo Content found above the upper limit of range specified, can be accepted

without any extra payment. (Payment shall be restricted to upper limit of range) 3.08 Weighment

For Imported consignments, The weight mentioned in the third party inspection certificate or the Bill

of Lading / supplier’s challan weight , whichever is less, shall be final for the payment purposes.

For indigenous supply All trucks shall be weighed at destination at respective Plant’s

Weighbridge(s) . If the weighment at respective Plant for that truck is within tolerance range of

minus 0.5 percent of the Supplier's Challan weight, The supplier’s challan weight shall be final. If the weighment at respective Plant is found to be more than the Challan weight, the payment shall

be restricted up to the Challan weight. In case the weighment at respective Plant is found to be less by more than 0.5 percent of the

challan weight, the weighment found at respective Plant shall be final for the purpose of payment.



23

3.09 Insurance

The insurance in respect of the import of the materials supplied is covered under the buyer’s

open policy The seller should forward a copy of the invoice and a non negotiable copy of bill of

lading/ Airway Bill as the case may be each by Air courier service to the buyer’s under writers . The

intimation regarding shipment should be given to the underwriters and the buyers & BTSO or

Clearing Agents (as nominated by Individual plant as specified in back up orders) over cable/email/

fax also.

Indigenous supply will be made on FOR respective Plant stores basis. The Insurance if

required, will be on supplier’s account.

3.10 Payment Terms: 3.10.1 For DOMESTIC SUPPLIERS ( Including DTA sales) : 100% against Goods Acceptance & rejection Note (GARN)/GRN/SRV/Inspection cum receipt certificate (RC) payable within 30 days of receipt of Bills . In case offer is for any other payment term, the same should be clearly mentioned. SAIL/ASP reserves the right to reject quotation with unfavourable payment terms. Suitable loading however shall be done for evaluating offers with payment term deviating from GARN payment term. Payment shall be made on Mo Content basis limited to the range of Mo as specified for each lot with maximum payment restricted to upper limit of Mo range specified for various lots .

Documents to be submitted for payment are: Invoice / Bills in triplicate, Excise gate Pass –

Consignee copy,Manufacturer’s Test Certificate & Guarantee CertificateInspection cum receipt

certificate for accepted material. 3.10.2 FOR OVERSEAS SUPPLIERS SUPPLYING ON DIRECT IMPORTATION BASIS-Payment are to be qouted as 100% on CAD basis payable on 30 th day of B/L date or on arrival of vessel, whichever is earlier, through banking channel as indicated by individual SAIL units with bank charges in respective account. In case offer is for any other payment term, SAIL reserves the right to reject quotation with unfavourable payment terms or to load the price for the purpose of evaluation for different payment term as per prevailing procedure. Payment shall be made on Mo Content basis limited to the range of Mo as specified for each sublot with maximum payment restricted to upper limit of Mo range specified for various lots .

For Direct Import ,following documents shall have to be submitted in original through bank for payment: -

a. Full set of clean shipped on Board ocean Bill of Lading for despatchesd by sea,/ Air Way Bill for despatch by Air, consigned and blank endorsed to the buyer, freight paid (For CFR Despatches).

b. Signed material invoice showing the amount payable in foreign exchange after deduction of agency commission , if any.

c. Packing list showing the package wise Gross and Net weight. d. ‘Certificate of origin ‘issued by the local chamber of Commerce and Industry. e. Test Certificate, 3

rd party Inspection Certificate.

f. Certificate to the effect that action has been taken by the seller to inform underwriter for marine Insurance against buyer’s open Insurance Policy.

g. Certificate to the effect that material shipped are strictly as per the contracted specification and size by seller.

h. Certificate to the effect that seller has sent six sets of non negotiable copies of the documents to the buyer and their representative within 15 days of Bill of Lading/AWB as the case may be.

The seller must send a signed copy of document through International courier service within 15 days

of B/L date to the Branch Manager , Transport and Shipping Organisation, Steel Authority of India

Limited, Balmer Lawrie Building, 21 N.S.Road, Kolkata 700001. or as authorised by respective

plants in their backup order.



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c) Respective Steel Plants will indicate the paying authority

Note: i) The individual Plants reserve the right to make any recoveries including penalties,Liquidated

Damages, short receipt ,rejection etc from any of pending bills of the supplier / subsequent bills

as per procedure.

3.11 Taxes & Duties 3.11.1 DOMESTIC SUPPLIERS

Excise Duty + Educational Cess: Excise duty plus educational cess shall be payable extra

at the rate ruling on the date of scheduled despatch. The supplier has to provide the ‘Duplicate for

the transporters’ copy of invoice along with the material to enable the concerned steel plant to avail

CenVAT benefit. The necessary formalities and rules of excise must be followed for preparing

CenVAT invoice to avoid any discrepancy at the time of receipt of the material. In the event of

CenVAT not being availed due to faulty invoice, the amount so claimed shall be recoverable from

the supplier’s pending or forthcoming bills. In case the bills are not supported by excise paid

documents, the claim for excise duty shall be withheld and the same shall be released on

presentation of the requisite documents. Party shall quote ED Tariff Number in their offer and on all

despatch documents. Sales Tax Sales tax as applicable on the date of schedule despatch will be

payable extra but at concessional rate against issuance of appropriate sales tax declaration form by

the respective steel Plants. If sales tax is exempted, the same should be clearly indicated by the

supplier supported by documentary evidence. If VAT is applicable , the same shall be payable on

submission of required documents.

Other Taxes – The supplier shall indicate if any other taxes are applicable extra for any

particular state. All tax rates currently applicable should be indicated in the techno-commercial bid.

Duties and taxes, however, will be reimbursed against documentary evidence at the rates applicable

at the time of despatch within the agreed schedule period..

Credit/ Input Tax Rebate available to SAIL Plants applicable for the item to be supplied under VAT / Entry Tax applicable for respective plants as indicated in RFQ is indicated below:

SAIL

Plants VAT Rate Input Tax

Rebate Entry Tax

RSP 5% 3.40 % 1% ASP 5% 2.50 % 1% VISL 5% 3.30 % Nil

Note :- Entry Tax of ASP is applicable for out side West Bengal based Suppliers. The input tax rebate as given above is as per the current rate. The actual rate as applicable on the date of reverse auction shall be taken in to consideration for calculation of LCNS price and subsequent price break-up to be submitted by the bidders.

3.11.2 For Direct Importation, Supplier shall make payments for all taxes and duties in the country of export as applicable.

3.12 Claims : In case any pallets/ material is found damaged externally at the time of receipt at

respective plant sites, such material would be subjected for detailed checking by a SAIL



25

representative and the report would be sent to the supplier who should arrange for immediate

replacement in case any item is found missing or damaged If damage/ defect stated above are found

due to improper and inadequate packing before shipment, the cost of replacement would be borne

by the supplierIn case materials are found short supplied or in damaged condition for reasons

attributable to the supplier, claim in this regard will be intimated to the supplier within 90 days from

the date of receipt of materials at the place of destination. The supplier shall arrange for replacement

free of cost The claim will be corroborated by the investigation report made by the authorised

representative of the purchaser with the participation of the supplier's representative who may like to

be present. The purchaser will give sufficient advance notice to the supplier for deputing his

representative

3.13 General Terms & Conditions: The RFQ shall be read in conjunction with the ‘General

Conditions of Contract’ (SAIL P-1, copy of the same is available on SAIL Website and can be



26

downloaded) together with any other document issued and forming part of this tender. All these

documents shall form the complete set of documents. They are complementary and anything called

for by one and not called by the other shall be considered as binding, as though called for by all.

Wherever the clauses stipulated in the ‘ General Conditions of Contract ‘ are contradictory to those

stated herein, terms indicated in this RFQ, shall have precedence. Condition – As contained in the

general conditions of the contract governing supply contracts of SAIL (SAIL-P1) shall apply except to

the extent it is amended herein. If any trend of cartel formation is observed in the tender

process, bids of all suppliers involved will be summarily rejected and SAIL will blacklist all such

suppliers for future purchases The respective steel plants shall issue formal backup

purchase orders indicating the consignee, paying authority, submission of bills, etc. 3.14 Agency commission due to the Indian agent, if any, shall be payable in equivalent Indian

Rupees at the exchange rate as per the telegraphic transfer rate , ruling on the date of order , after

receipt & acceptance of goods by respective plants and after registration with the plant. This rate will

not be subject to any further exchange rate variation. Payment to overseas suppliers will be made for

the price (CFR /FOB , as per contract directly in foreign currency) minus the Indian agency

commission if any. Agency commission will be payable to the Indian agent in Indian Rupees after

receipt of the cargo in plant stores and issue of GRN.

3.15 Diversion Of Supplies: In case of necessity, it shall be at the option of SAIL to divert supplies to destination(s) other than

incorporated in the order. 3.16 Failure & Termination -

Should the supplier fail to deliver the materials or any consignments thereof, within the period

prescribed for such delivery, the Purchaser shall be entitled at his option to the following-

i) Liquidated Damages – In event of supply not being effected within the contractual delivery

schedule, liquidated damages @1%, not by way of penalty, of the value of material without taxes,

duties & freight, per month of delay or part thereof , subject to a maximum of 5%, is recoverable from

the supplier without prejudice to the rights of purchaser to procure the balance material at the risk

and cost of the supplier. The payment or deduction of such damages shall not relieve the supplier

from the contractual obligations to complete the supply or balance portion thereof in time as

stiputaled in the Contract.

ii) Risk Purchase – If the supplier fails to deliver the stores either in full or in part, within the

prescribed delivery period, the Purchaser shall be entitled at his option to take alternate procurement

action, at the risk & cost of the supplier for the unsupplied portion of the goods/items for which

delivery has expired without cancelling the contract in respect of stores not yet due for delivery, or to

cancel the contract based on progress of work , including stores not due for delivery, and, if thought

fit/ necessary, to purchase the stores at the risk and cost of the supplier. The price differential in

case of higher cost to SAIL. If any, shall have to be borne by the defaulting supplier. Moreover the

defaulting supplier shall have no claim over the quantity, which they failed to supply.



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3.17 Force Majeure

If at any time during the currency of the contract, the performance in whole or in part by either party

of any obligation under this contract shall be prevented or delayed by reason of War, Hostility, Act of

Public Enemy, Civil Commotion,sabotage, Fire,Flood, Exlplosion, Epidemic,Quarantine restrictions,

Acts of state or Acts of God, hereinafter referred as eventualities , then the contract period will get

extended for the period of Force Majeure , provided notice of the happenings of any such

eventualities is given, supported by a certificate of appropriate authority or chamber of commerce by

either party to the other within 15 days from the date of occurance thereof.

3.18 Conciliation & Arbitration :

• Conciliation : As per clause 20.0 of SAIL P-1

• Arbitration : As per clause 21 of SAIL –P1.

3.19 Legal Law :

The contract entered into between the company and the supplier shall be governed by and

interpreted in accordance with the Laws of India. The place of jurisdiction shall be place where

the purchaser is located, unless otherwise specified.

3.20 In Section – 2, ‘Lot’ refers to requirement of each Plant.



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FORM - A

(To be submitted on Supplier’s Letter Head)

Format for Acceptance of Commercial Terms, General Terms and Conditions and all other Terms of the RFQ

We

having registered office at

_ (Supplier Name)

_ (address)

agree to all the Commercial, General & other Terms & Conditions listed in the Enquiry No.

dated

for procurement of (item)

We confirm that we are in a position to supply material as per the specification given in Enquiry. We have also understood the Reverse Auction Process and the Reverse Auction rules and special instructions given in the Enquiry. We agree to participate in the Reverse Auction and abide by the rules. We nominate an executive, whose details are given below, to put the bids on our behalf.

It is further confirmed that we have submitted Online price bid at Mjunction’s website as informed

and have enclosed a documentary proof of the same. We also agree the SAIL’s decision to open

online sealed price bid and finalise order at the price quoted by us in online Sealed price bid . The

same shall be acceptable to us.

The details of the bidder authorised to bid on our behalf is as follows.

Name & Designation:

e-mail ID :

Contact phone nos. :

Address :

(Signature of authorized executive & Seal)

Place:

Date:



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FORM – B

Enquiry No. ; Date :

Format for Technical Specifications Item

Sl.No.

Item

Code

Item Spec/ Description

Unit of measurement

Quantity

Tendered

against RFQ

In case the tenderer agrees to supply as per specification indicated in this format, he should write offered as per ASP’s description / specification, in the Table given below. Similarly, any variation in specification offered by the tenderer should be filled in the Blank space provided against each item. If additional space is required please enclose separate sheet.

Description Offered as desired by SAIL

or

Variation, if any, to be filled in by the Supplier

Quantity Variation

Item Spec/ Description

Inspection Guidelines

Criteria for acceptance of material

Other Technical Conditions

Packing

Delivery Conditions

Any other Criteria described in this

RFQ

(Signature & Seal)

Name :

Designation :

Place:

Date:


Tender No: SAIL/ASP/Fe MOLY/2012-13/CPA/I 29/39

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FORM – C ( For Import)

Please use this sheet to specify details for Direct Import offers By Overseas suppliers INSTRUCTION TO FILL UP FORM

1. Please use this form to specify details of bank account, Port of Shipment, Country of origin.

2. Please use additional space to provide relevant information.

3. Please fill up the blank spaces.

1. MANUFACTURERS’S NAME & ADDRESS:

PIN Code Number

2. ORDER TO BE PLACED ON:

(Complete name & address of Beneficiary)

3. BANK DETAILS along with :

Bank Name & Address:

Account Number.

Swift Code :

4. QUOTED CURRENCY: 5. COUNTRY OF ORIGIN:

6. PORT OF LOADING:

7. TRANSHIPMENT REQUIRED: YES / NO (please specify)



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8. PART SHIPMENT REQUIRED : YES / NO (please specify)

9. INDIAN AGENT’S NAME & ADDRESS(If any): ( Valid authorisation letter in favour of Indian agent to be enclosed)

10. INDIAN AGENCY COMMISSION INCLUDED IN PRICE:

11. If Both CFR & FOB Price is quoted in the price Bid

Signature and seal of company



31

FORM – C ( For Indigenous Suppliers)

Please use this sheet to specify the Excise duty, Sales Taxes & other duties.

1. Excise Duty (ED): Applicable/ Not applicable

2. Present ED rate, if applicable

3. Tariff number

4. Excise Registration Number

5. Taxes applicable

Sales Tax (%) In figures

In Words

Other taxes & duties applicable (%)

Description In figures In words

6. Please indicate the following applicable for your company

Sales Tax registration number

Central Sales Tax registration number

Other Taxes registration number (VAT)

(Signature & Seal)

Name :

Designation :

Place:

Date:



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FORM - D Enquiry Number :

Format for Basic Information of the Vendor

Date :

Instructions to fill up the Basic Information:

(i) Please use this worksheet to specify basic financial/ IR/ Contact information; an authorized person should sign the document at relevant section.

(ii) Past Industrial Relations track record, please mention if there was closure/ cessation of work at any of your plant(s) in the last 5 years.

(iii) Use this form as Proforma/ Format. Use additional sheets to provide relevant information. (iv) Provide all the certified relevant documents w.r.t claims made in this Form.

1 Company’s Name

2 Ownership Details

3 Manufacturer/ Distributor/ Dealer

4 Mention, if PSU/ Joint venture with PSU/ SSI Unit

5 Incase of PSU - Central PSU or state Govt. PSU

6 Incase of a Joint Venture, details of % wise equity holding

7 SSI Unit details, if applicable

8 ISO Status

9 Whether product is ISI Marked or as per ISI

10 Contact Person & Designation

11 Phone No.

12 Fax No.

13 E-mail

14 Financial details of Turnover & profit for the last 3 years

15 Major Manufacturing Capabilities Sr.

No.

Name

&Address

Installed

Capacities

Capacity

Utilized

Present level Order booking

FY 1 FY 2 FY 3

16 The year of inception of the company/ business

17 Stocking points w.r.t to location of Alloy Steels

Plant



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18 Bank Account detail : Name & Branch

Account Number

19 PAN No

I hereby certify that all information provided above is correct to the best of my knowledge.

(Signature, name & seal of the authorized person)



34

ANNEXURE II

EARNEST MONEY BANK GUARANTEE FORMAT

(On Non-Judicial Stamp Paper of value not less than Rs. 50/=)

......................................................................................................................... (Name of the Bank)

Address .....................................................................................................................................................

Guarantee No. .......................................

A/c Messrs ............................................................................................................ (Name of Bidder)

Date of Expiry ........................................

Limit to liability (currency & amount) ......................................................................................................

Invitation For Bid No/Tender Enquiry No......................................................... dated ......................................

For ................................................................................................................... (Name of Facilities/materials)

Subject ... Bid Security Bank Guarantee.

Date .................................. 200..

To

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

Steel Authority of India Limited

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



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

[Name and Address of Employer/Purchaser]

Dear Sir,

In consideration of the Steel Authority of India Limited, Alloy Steels Plant, Durgapur, a company

registered under the companies Act 1956 and having its registered office at Ispat Bhawan, Lodhi Road, New

Delhi 110003, India (hereinafter called “Employer/Purchaser”) which expression shall unless repugnant to

the subject or context include his successors and assigns having agreed to exempt M/s

(hereinafter called “Bidder”) from demand under the terms & conditions of TENDER DOCUMENTS

(hereinafter called the said “Bidding Document”) issued by the Purchaser/Employer vide TENDER Enquiry

No.: dated for the works ( Name of the Facilities/ Material) from

deposit of Bid Security for the due fulfilment by the Bidder of the terms and conditions contained in the said

Bidding Document on production of Bank Guarantee for Rs. / US$ (Rupees / US Dollars or

any other currency approved by the Employer/Purchaser, as the case may be)( only) (figure in

words).

We the Bank Ltd. (Name of Bank)(hereinafter referred to as “Bank”) having our

registered office at (address of Bank) do hereby undertake and agree to indemnify and keep

indemnified the Employer/Purchaser/Purchaser to the extent of Rs. / US$ (Rupees or US Dollars

or any other currency approved by the Employer/Purchaser)( only)(figures in words) against any

losses, damage cost, charges and expenses caused to or suffered by or that may be caused or suffered by the

Employer/Purchaser by reason of any breach or breaches by the Bidder of any of the terms and conditions

contained in the said Bidding Document and unconditionally pay the amount claimed by the

Employer/Purchaser on demand and without demur to the extent aforesaid.

2. We Bank Ltd. do hereby undertake to pay the amounts due and payable under

the guarantee without any demur merely on a demand by you stating that the amount claimed is due by way

of loss or damage caused to or would be caused or suffered by you by reason of any breach by the said

Bidder of any of the terms or conditions contained in the said Bidding Document by reason of the Bidder’s

failure to fulfil the conditions of said Bidding Document. Any such demand on the Bank shall be conclusive as

regards the amount due and payable by the Bank under this guarantee. However, our liability under this

guarantee shall be restricted to an amount not exceeding Rs. .

3. We Bank Ltd. further agree that the Employer/Purchaser shall be the sole judge of

and as to whether the Bidder has committed any breach or breaches terms and conditions of the said Bidding



36

Document and the extent of loss, damages, costs charges and expenses caused to or suffered by or that may

be caused to or suffered by the Employer/Purchaser on account thereof to the extent of the Bid Security

required to be deposited by the Bidder in respect of the said document and the decision of the

Employer/Purchaser that the Bidder has committed such breach or breaches and as to the amount or

amounts of loss, damages, costs, charges and expenses caused to or suffered by or that may be caused to or

suffered decision of the Employer/Purchaser that the Bidder has committed such breach or breaches and to

the amount or amounts of loss, damages, costs, charges and expenses caused to or suffered by or that may

be caused to or suffered by the Employer/Purchaser shall be final and binding on us.

4 We Bank Ltd. further agree that guarantee herein contained shall remain in full

force and effect during the period that would be taken for the performance on the said Bidding Document

and that it shall continue to be enforceable till you certify that terms and conditions of the said Bidding

Document have been fully and properly carried out by the said Bidder and accordingly discharge the

guarantee. Unless a demand or claim under this guarantee is made on us in writing within two months of

the expiry date i.e. on or before the we shall be discharged from all liability under this

guarantee.

5. We Bank Ltd. further agree with you that you shall have the fullest liberty without our

consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the

said Bidding Document or to extend time of performance by the said Bidder from time to time or to postpone for any

time or from time to time any of the powers exerciseable by you against the said Bidder and to forbear or enforce any

of the terms and conditions relating to the said Bidding Document and we shall not be relieved from our liability by

reason of any such variation or extension being granted to the said Bidder or for any forbearance act or omission on

your part or any indulgence by you to the said Bidder or by any such matter or thing whatsoever under the law relating

to sureties would but for this provision have effect of so relieving us.

6. It shall not be necessary for the Employer/Purchaser to proceed against the Bidder before

proceeding against the Bank and the Guarantee herein contained shall be enforceable against the Bank,

notwithstanding any security which Employer/Purchaser may have obtained from the Bidder at this time

when proceedings are taken against Bank hereunder be outstanding or unrealised.

7. We Bank Ltd. further undertake to unconditionally pay the amount claimed by the

Employer/Purchaser merely on demand and without demur to the extent aforesaid.

8. We, the said Bank lastly undertake not to revoke this guarantee during its currency except with the

previous consent of the Employer/Purchaser in writing and agree that any change in the constitution of the

Employer/Purchaser or the Bidder or the said Bank shall not discharge our liability hereunder dated

day of 200.. for Bank Ltd.



37

Your faithfully

For ..........................................

(Name of the Bank)

Note :- List of Eligible schedule commercial Banks for acceptance of BG s are as per enclosed. ( These

banks should have a branch at the place where plat/Unit is located ot at the place where the plant/unit

has its unit office.



)

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