BHARAT PETROLEUM CORPORATION LIMITED sewr… · bharat petroleum corporation limited ‘a’ installation, sewree fort road sewree (e), mumbai - 400 015 tender for supply of 14.2

BHARAT PETROLEUM CORPORATION LIMITED

‘A’ INSTALLATION, SEWREE FORT ROAD SEWREE (E), MUMBAI - 400 015

TENDER FOR SUPPLY OF 14.2 KG LPG CYLINDERS WITH SC VALVE TO VARIOUS LOCATIONS

TENDER NO LPG:EQ:09-10:08 DATED 17.11.09

DUE ON: 08.12.09 AT 1500 HRS

LPG:EQ:09-10:08 17th November, 2009 To, All the Cylinder Manufacturers Dear Sir/Madam,

SUBJECT: INVITATION OF TENDER THROUGH E-PROCUREMENT FOR SUPPLY OF 23.42 LAKH NOS. 14.2- KG LPG CYLINDERS WITH SC VALVES

(TENDER NO. LPG:EQ: 09-10:08 DT. 17.11.09 DUE ON 08.12.09 AT 1500 HRS.)

1. You are invited to submit your offer in a two part bid for supply of about 23.42

lakhs numbers of 14.2-kg LPG cylinders (as indicated in Drawing Nos. LPG:EQ:D142 Rev.2 enclosed herewith) and fitted with SC valves at the various locations intimated from time to time, on the terms and conditions contained in the tender document.

2. Please find enclosed the following set of annexures:

2.1 Annexure I - Instructions to Tenderer

2.2 Annexure II - Technical Specifications of 14.2-kg LPG

Cylinders/SC Valves 2.3 Annexure III - Drawings /List of approved valve

manufacturers

2.4 Annexure IV - Terms & conditions of agreement for procurement of 14.2 KG LPG Cylinders

2.5 Annexure V - Scheme for Vendor Performance Evaluation

2.6 Annexure VI - Credential Bid 2.7 Annexure VII - Declaration forms

2.8 Annexure VIII - Declaration for conformity to Technical

Specifications & Facility Requirement

2.9 Annexure IX - E-Tender Process for Price Bid 2.10 Annexure X - Integrity Pact

All the annexures along with this letter form the tender document.

3. Any manufacturer having valid approval from CCOE and license from BIS for manufacture of LPG cylinder of the capacity required (14.2 kg LPG) in this tender document as per IS 3196 (Part I) as on the date of this tender is eligible for quoting.

4. Tender documents can be obtained from the office of Chief LPG Equipment

Manager, (CLEM), Bharat Petroleum Corporation Ltd, (BPCL), Sewree, Mumbai, India from 17.11.09 to 08.12.09 upto 3.00 PM. Payment of non transferable Tender Document fees of Rs. 1000/- should accompany the request. Payment should be in the form of Crossed Demand Draft issued by a Scheduled Bank drawn in favour of ‘BHARAT PETROLEUM CORPORATION LTD’ payable at Mumbai. Tender documents can also be downloaded from our

site www.bharatpetroleum.in, in that case, separate demand draft for cost of tender document (Rs.1000/-) and EMD (as applicable) should accompany the bid, failing which the tender bid is liable to be rejected.

5. The tender document is not transferable.

6. Tender documents complete in all respects along with EMD, should reach the

office of CLEM at the above address, by 3.00 PM on 08.12.09. 7. Kindly ensure to submit the declaration (draft given below) on your letterhead

and enclose it along with the tender document, if downloaded from the website. Document submitted on downloaded tender sets are liable to be rejected if such declaration is not attached.

DECLARATION ON LETTERHEAD

We solemnly affirm as under: a) This Tender Document Set was downloaded by us from your website and is being

used for submitting the tender. b) The downloaded file was printed and is being submitted without any alterations,

deletions, additions or changes. c) All Terms and Conditions of the tender set are acceptable to us and we hereby

accept and agree to abide by all the other Terms and Conditions contained in the tender document set.

d) We understand that in case it is found subsequently that the downloaded Tender

Document Set was altered or tampered with, in any manner, then our bid is liable to be rejected or in case a purchase order is placed on us basis such tampered document, then the order is liable to be cancelled without any further reference to us.

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8. Integrity Pact – a) Proforma of Integrity Pact (IP)shall be returned by bidder/s along with the

tender documents, duly signed by the same signatory who is authorized to sign the tender documents. All the pages of the Integrity Pact shall be duly signed. Bidder’s failure to return the IP duly signed along with the tender documents shall result in the bid not being considered for further evaluation.

b) If the bidders have been disqualified from the tender process prior to the award of the contract in accordance with the provisions of the Integrity Pact, BPCL shall be entitled to demand and recover from Bidder Price reduction amount by forfeiting the EMD/Performance Guarantee as per provisions of the Integrity Pact.

c) If the contract has been terminated according to the provisions of the Integrity Pact, or if BPCL is entitled to terminate the contract according to the provisions of the Integrity pact, BPCL shall be entitled to demand and recover from contractor Price reduction amount by forfeiting the Performance Guarantee amount as per provisions of the Integrity Pact.

d) Bidders may raise disputes/complaints, if any, with the nominated Independent External Monitor.

e) The name, address and contact numbers of the nominated Independent External Monitor are as follows:

Mr.Uppiliappan Sundararajan, Flat no.3A-1302, Whispering Palms, Lokhandwala Complex, Akurli Road, Kandivali (east) Mumbai – 400 101

Contact no.022-29650600 Mobile : 9820503000

9. Tender documents submitted after the due date and time of closing of tender or

not in the prescribed format is liable to be rejected. BPCL does not take any responsibility for documents received late due to postal delay, lost in transit or otherwise and no claims on this account shall be entertained.

Thanking you, Yours faithfully, for Bharat Petroleum Corporation Ltd. (J Vedagiri) Chief LPG Equipment Manager

TENDER NO: LPG: EQ: 09-10:08 ANNEXURE I

INSTRUCTIONS TO TENDERER

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1. Competitive offers are invited from the manufacturers of LPG cylinders for the sale and delivery of 23.42 lakh nos. empty cylinders suitable to contain 14.2-kg LPG on the terms and conditions contained herein. Parties shall also be required to procure SC valves (as per IS 8737) and fit them on cylinders.

2. a) Only Parties with valid CCOE approval & BIS licence for

manufacture of LPG Cylinders of the capacity required in this tender document as per IS-3196 (Part I), as on the date of this tender shall be eligible to quote. b) Pro-rated performance till 1/11/09 of the vendors supplied against the tender LPG;EQ:09-10:01 dt. 17.4.09 will be applied to determine their eligibility of a vendor for participation in this tender. c) The parties who are debarred from participation (Black listed) in any tender floated by LPG Equipment Dept, as on the date of this tender, will not be considered.

3. The tender is for a period of Six months from the date of placement

of LOI/purchase order and may be extended for a period of another six months or repeated at the sole discretion of BPCL. Escalation/ de-escalation based on the Ex Steel Factory price of LPG Body Steel declared by M/s SAIL ex-Bokaro shall be admissible as per the clause 4 of Annexure IV.

4. This is basically a rate contract and quantities are not guaranteed.

However, State-wise estimated requirement as per best estimate is given at the end of this annexure. Procurement shall be done based on actual requirement which may vary from the estimates.

5. Presently the Corporation approved steel suppliers are M/s. SAIL,

TISCO, ESSAR, SSP, ISPAT, LLOYDS and JINDAL. The parties shall have to procure steel only from the above suppliers or any other supplier/ import source as approved by the Corporation from time to time. Similarly, parties shall be required to procure SC Valves only from the parties registered / authorized by BPCL.

6. Both the Credential bid (that includes all the enclosed Tender

documents along with the covering letter) and the online price bid will form part of the tender. Tenderers are requested to carefully study all the documents/ annexures and understand the conditions, specifications, drawings etc., before quoting their rates. In case of doubt, written clarifications should be obtained, but this shall not be a



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justification for late submission of the bid and/or request for extension of due date for submission of the bid. Offers should strictly be in accordance with the tender terms & conditions and our specifications.

7. All entries in the credential bid shall be written in permanent ink or typewritten. Any erasures or over writing should be attested under the full signature(s) of the Tenderer.

8. Tenderers shall return the full tender set duly signed and stamped at

the bottom of each page as token of having read, understood and accepted the conditions. The authorized signatory shall be :

a. Proprietor in case of proprietary concern. b. All the partners in case of partnership firm. c. Director, in case of a limited Company, duly authorized by its board

of directors to sign.

If for any reason, the proprietor or all the partners or director as the case may be are unable to sign the document, the said document should be signed by the constituted attorney having full authority to sign the tender document and copy of such authority letter as also the power of attorney, duly signed in the presence of a Notary public should be submitted with the tender. Tenderer’s signature(s) on the documents shall be considered as total acceptance of the terms & conditions and hence “acceptance” need not be mentioned on each paper of the offer.

9. To participate in the tender, the tenderer shall have to offer minimum

quantity of 1 lakh nos. cylinders and in multiples of 10,000 thereafter. Any bid offering quantity lower than 1 lakh is liable to be rejected.

However, minimum quantity to be offered by new vendors is 25000 and

dormant vendors 50000 cyls. Pls. refer clause 20 (f) & (g) of this Annexure.

10. Incomplete credential bid or credential bid received with deviations /

subjective or counter conditions/ quantity restrictions are liable to be rejected and no further correspondence / enquiries on this issue by the tenderer shall be entertained.

11. Unsolicited / conditional discounts if offered by any party will not be

considered and offers of parties offering such unsolicited discounts are liable to be rejected.



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12. Earnest Money Deposit (EMD)

a) The tenderers shall submit an interest-free Earnest Money Deposit of Rs 10 lakh (Rupees Ten lakhs only) by crossed account payee Demand Draft drawn on any nationalised/ scheduled bank in favour of “BHARAT PETROLEUM CORPORATION LTD” payable at Mumbai. EMD should be submitted along with the bid.

b) Cheques, cash, Money Orders, Fixed deposit Receipts, Bank

guarantees etc. towards EMD are not acceptable. Similarly, request for adjustment against any previously deposited EMD/Pending Dues/Bills/Security Deposits of other contracts etc. will not be accepted towards EMD.

c) Tender received without the EMD is liable to be rejected at the

discretion of BPCL.

d) Following units are however, exempted from payment of EMD:

i. Public Sector Enterprises ii. Units registered with National Small Industries Corporation

(NSIC) subject to : ! The unit being registered with NSIC for the item tendered. ! Registration certificate being valid as on date of quotation. As the case may be, such tenderers must submit either proof to show that they are PSE or a photocopy of valid NSIC Registration Certificate / Review certificate duly attested by a gazetted officer / notorised, (photocopy of application for registration as NSIC or for renewal will not be acceptable) failing which such credential bid will be treated as credential bid received without EMD and liable to be rejected.

e) Registration with DGS&D will not entitle the Tenderer to claim

exemption from payment of EMD.

f) in the event of any of the following:

i. Withdrawal of offers during the validity period of the offer. ii. Non–acceptance of Letter of Intent/Order, if and when placed. iii. Any unilateral revision in the offer made by the tenderer during

the validity of the offer.



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iv. Non payment of Supply and Performance Guarantee amount against LoI/ Purchase Order within the stipulated period of 15 days from date of LoI/ the Purchase Order whichever is earlier.

the following will apply - A) For the parties who have submitted EMD – EMD will be forfeited and shall be barred for a period of one year from taking part in any tender floated by LPG Equipment Dept of BPCL in future. B) Parties who have opted for exemption from submitting the EMD, shall be barred for a period of one year from taking part in any tender floated by LPG Equipment Department of BPCL in future.

g) EMD will be refunded (National Electronic Fund Transfer) to all the successful tenderers after they deposit the amount for Supply and Performance Guarantee (refer Item 2 of Annexure IV) against LOI/Purchase Orders, as placed.

h) EMD will be refunded (National Electronic Fund Transfer) to all the unsuccessful tenderers after placement of order on successful tenderers.

13. The tenderer should also submit the following documents along with

tender bid:

a) Copies of valid CCOE and BIS licence duly attested. b) Copy of PAN Card. c) Certified copies of Registration certificate under DGTD, Central

Excise & Central & State Sales Tax. d) Certified copies of Registration certificate under NSIC (if

applicable). e) Certified copies of Partnership Deed/ Memorandum & Articles of

Association & Certificate of registration with the Registrar of Companies’ (if applicable).

f) Organogram

The tenderer should sign and stamp each and every page of the supporting documents submitted with the credential bid. The supporting documents should be serially numbered and total number of pages submitted, should be indicated in the covering letter.

14. EMD particulars

a. Bank Draft No. _______________dated _____________ for Rs. 10 lakhs drawn on ___________________________(Bank) in favour of Bharat Petroleum Corporation Limited and payable at Mumbai as EMD.



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b. Proof of being a: i) public sector enterprise; or ii) unit registered with the National Small Scale Industries

Corporation for the manufacture and supply of 14.2kg LPG cylinders under the tender terms,

which makes eligible for exemption from EMD. Accordingly we are

not enclosing any demand draft towards EMD.

(Note: kindly strike out the clause which is not applicable)

15. The documents to be enclosed are as per point 13 above. 16.Tender documents along with all enclosures shall be submitted in a

sealed cover addressed to Chief LPG Equipment Manager and boldly super-scribed on the outer cover –

• Tender number • Item • Closing date/time • Name of the tenderer It should be dropped in the tender box or sent by Registered Post/Courier to the following address so as to reach before the closing due date/time:

LPG Equipment Department, Bharat Petroleum Corporation Ltd., ‘A’ Installation, Sewree Fort Road, Sewree (E), Mumbai – 400015.

17. Credential Bids submitted after the due date and time and those not in the format or not in conformity with the prescribed terms and conditions or specifications shall be summarily rejected and no further correspondence/ enquiries shall be entertained on the issue. No responsibility shall be taken by the Corporation for documents received late due to postal delay and no claims on this account shall be entertained.

18. Credential bid with counter or subjective conditions are liable to be

rejected. Any terms and conditions attached by the Tenderer in his/her credential bid will not be binding on the Corporation.Track record or any other parameter considered relevant by the Corporation may also be used for evaluating the credential bid.



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19. The details of the E-Tender process for price bid are enclosed as

Annexure IX. The last date and time for submitting the on-line price bids is 08.12.09 (closing time 3 pm). Price Bids shall be required to be digitally signed with a class IIB digital signature by an authorised signatory as defined in clause 8 above. The price bids of only those vendors who qualify in the technical bid will be opened on-line. The price bid submitted by the tenderer shall be valid for acceptance for a period of 120 days from the date of closing of the on-line bidding.

20.ACCEPTANCE OF THE PRICE BID BY THE CORPORATION: a. Based on the price bid received, BPCL will place orders on one or

more tenderers whose offer is considered acceptable to BPCL. The order allocation will be finalised by BPCL by taking into account the following: (i) Quoted ex-factory price (ii) Logistic considerations that shall include Sales Tax, transportation

charges and octroi applicable for a particular tenderer for each State.

(iii) Input Tax Credit (ITC) available, if any (iv) Quantity Offered by the tenderer (v) Track record of any other parameter considered relevant by the

Corporation. b. BPCL shall calculate an average net delivered price for each State for

each tenderer by adding:

(i) Sales Tax/VAT (ST) as applicable and declared by the tenderer (Refer Annexure VI)

(ii) Freight quoted and (iii) Octroi as applicable/declared to the ex-factory rates quoted by the tenderer by using the following formula: Net delivered price = (quoted ex factory rate * (1+ST) +

Freight)*(1+Octroi rate)

c. The net delivered price (NDP) so calculated less input tax credit

(ITC) shall form the basis for selection of vendors for placement of order and initial order allocation.



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d. The order allocation shall be done such that the net cost to BPCL is

minimum. The contracts shall be finalized at the quoted/negotiated rates in line with clause 4 of Annexure IV.

e. BPC reserves the right to negotiate with tenderers and counter offer a

rate if required. Tenderers may have to attend the concerned office of the Corporation for negotiations/ clarifications if required at their own cost, in respect of their quotations without any commitment from the Corporation.

f. Orders on all new units (viz. units that have not supplied 14.2 kg LPG

cylinders to OMCs so far against their current BIS licence) who qualify in the bid shall be placed only after BPCL ascertains their capability. In case the manufacturing/ Inspection facilities set-up by such tenderers are found satisfactory by BPCL, a trial order for 1250 numbers of cylinders will be placed. On satisfactory execution of the trial order, BPCL shall consider placement of regular orders subject to a maximum of 25,000 cylinders. However, in the event of the tender being extended for a further period of six months, order will be placed for such parties as per notional allocation finalised in the tender subject to a maximum of 1 lakh cylinders in the second year. Accordingly, the order allocation for other parties will get adjusted for the extended period.

g. Vendors who have not supplied 14.2 kg cylinders to any of the PSU Oil

Companies (OMCs) in the last three years from the date of the tender will be considered as dormant vendors. Orders on such units shall be placed only after BPCL ascertains their capability. In case the manufacturing/ Inspection facilities set-up by such tenderers are found satisfactory by BPCL, a trial order for 1250 numbers of cylinders will be placed. On satisfactory execution of the trial order, BPCL shall consider placement of regular orders subject to a maximum of 50,000 cylinders.

h. In the event it becomes necessary for the Corporation to procure

Cylinders at different rates, then the Corporation reserves the right to make order allocation in such a way so as to enable the Corporation to get the maximum advantage.

i. The Corporation is not bound to accept the lowest offer and reserve

the right to reject any and/ or every tender without assigning any reason whatsoever and/or place order on one or more tenderers and/ or carry out negotiations with any tenderer in the manner considered



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appropriate by the Corporation. Corporation also reserves the right to reject any un-workable offer. Purchase preference would be given to Public Sector Enterprises as per directives of the Government of India.

j. Ranking of vendors will be based on the original quotation. Order

distribution will be based on the evaluation criteria explained below.

! The minimum no. of parties per state would be as under:

Rule Requirement of State indicated in the tender

Minimum no. of vendors

A Upto and including 1 lakh nos. 2

B More than 1 lakh nos. 3

! Considering the minimum number of vendors required as above,

distribution of order quantities would be as follows:

For Rule A 1. If number of L1s are equal to or more than 2, then order quantity

would be equally distributed to all L1s. 2. If the L1 is only 1, and L2 is also 1, then the distribution shall be in

the ratio of L1:L2 = 80:20 3. If the L1 is only 1, and L2s are more than 1, then the 20% of the

order quantity will be equally distributed to all L2s.

For Rule B 1. If number of L1s are equal to or more than 3, then order quantity

would be equally distributed to all L1s. 2. If the L1 is only 1, L2 is also 1, and L3 is also 1, then the

distribution shall be in the ratio of L1:L2:L3 = 70:20:10 3. If the L1s are equal to 2 and L2 is equal to one, then the distribution

shall be in the ratio of L1:L1:L2 = 45:45:10 4. If the L1s are equal to 2 and L2s are more than one, then the 90%

of the order quantity shall be distributed to all L1s and 10% of the order quantity shall be equally distributed to all L2.

21.It shall be understood that every endeavour has been made to avoid

errors which can materially affect the basis of the tender and the successful Tenderer shall take upon himself and provide for risk of any error which may subsequently be discovered and shall make no subsequent claim on account thereof.

22.Courts in the city of Mumbai alone shall have jurisdiction to entertain

any application or other proceedings in respect of anything arising



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under this tender either before or after or during finalisation of the tender.

23. State-wise estimated requirement- BPCL’s estimated requirement is about 23.42 lakhs cylinders of 14.2 kg. as given below and is liable to change depending on actual plant/state demand.

Sl.No. State Quantity

1 Haryana 9426

2 Punjab 49576

3 Rajasthan 95710

4 UP 316032

5 Uttaranchal 29498

6 Assam 26322

7 Bihar 149014

8 Orissa 66467

9 West Bengal 176358

10 Andhra Pradesh 264904

11 Karnataka 208967

12 Kerala 196179

13 Tamil Nadu 310228

14 Chhatisgarh 10629

15 Goa 8130

16 Gujarat 82280

17 Madhya Pradesh 81151

18 Maharashtra 261790

TOTAL 2342661

24. List of abbreviations used :

• The terms “BPC”, “BPCL”, The Corporation and the Company in the appropriate

context means Bharat Petroleum Corporation Limited, the Company registered under Companies Act 1956 and includes its successors and assignees.

• The term “SAIL” in the appropriate context means Steel Authority of India Ltd.

• The term “TISCO” in the appropriate context means Tata Iron and Steel Company Ltd.

• The term “ESSAR” in the appropriate context means Essar Steel Ltd. • The term “LLOYDS” in the appropriate context means Lloyds Steel Industries

Ltd • The term “SSP” in the appropriate context means Salem Steel Plant • The term “ISPAT” in the appropriate context means ISPAT Industries Ltd.



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• The term “JINDAL” in the appropriate context means Jindal Vijayanagar Steels Ltd.

• The term “CCOE” in the appropriate context means Chief Controller of Explosives.

• The term “BIS” in the appropriate context means Bureau Of Indian Standards.

• The term “OITC” in the appropriate context means Oil Industry Technical Committee.

• The term “OMC” in the appropriate context means PSU Oil Marketing Companies viz. M/s Indian Oil Corpn. Ltd, M/s Bharat Petroleum Corpn. Ltd., M/s Hindustan

Petroleum Corpn. Ltd. and M/s IBP Co. Ltd. • The term “UT” in the appropriate context means Union Territory • The term “PSU” / “PSU Oil Company” in the appropriate context means Public

Sector Undertaking Oil Marketing Companies • The term “PSE” in the appropriate context means Central Public Sector

Enterprise

• The term “LoI” in the appropriate context means Letter of Intent • The term “PO” in the appropriate context means Purchase Order • The term “PR” in the appropriate context means Price Reduction

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TENDER NO: LPG: EQ: 09 -10:08 ANNEXURE II

TECHNICAL SPECIFICATION

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TECHNICAL SPECIFICATIONS OF 14.2 KG LPG CYLINDERS

" The specifications given below do not form an exhaustive list. Manufacturer shall be required to follow all other specifications given in the relevant IS standards and BPC drawings along with instructions issued by BPC/BIS from time to time even if they have not been spelt out here.

" All Indian Standards referred to below imply their latest version along with amendments made from time to time.

" BPC may from time to time advise change of any of the dimensions, tolerances applicable and method of preparation of weld joints etc. which will have to be complied by the manufacturers. Similarly, any change in the safety slogan or change/addition in other details to be Screen Printed on the cylinders will have to be complied by the manufacturer.

" Manufacturers are required to stamp their abbreviated name & logo on the stay plate of the cylinder. The abbreviated name & logo shall be used only after approval has been obtained from CCOE, BIS & BPC.

A. General Specifications:

1. Cylinder should be manufactured as per IS - 3196 (PART-1): 2006 & tested as per IS-3196 (PART-III): 1991. The detailed drawing (drawing No. LPG: EQ: D 142 Rev 2) for cylinder is annexed herewith.

The manufacturer shall prepare detailed drawings of the cylinder fit for filling LPG having maximum working pressure of 1.66 Mpa at 650C, in line with the cylinder drawing mentioned above and all other requirements of BPC. Copy of the drawings prepared inline with the BPCL drawing (LPG: EQ: D142 Rev 2) shall be submitted along with the tender document failing which the price bid of the party will not be opened.

Approval shall be sought for all these designs, drawings and following mentioned parameters from CCOE, Nagpur and BIS. Manufacturing of the cylinders can commence only after these approvals have been obtained and approved drawings are submitted to BPCL and clearance is awarded by BPCL.

• Heat Treatment & Furnace Parameters i) Soaking Temperature:____ +/-___ oC (the maximum temp shall not exceed

7000C) ii) Cycle Time: ______ minutes; Gate opening Interval / no of cylinders may

alternatively be mentioned. iii) Type of Furnace : Batch / Continuous iv) Identification of the Furnace

• Bung Welding Parameters i) Current :_____________ Amp ii) Voltage: ________ Volts iii) Welding Speed:_____________



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iv) Type of Welding: _____________ v) Flux type (for SMAW) :___________________ vi) Gas Composition & Flow Rate (for MIG / MAG Welding)

______________________ vii) Welding Wire Specs : Material: _____________ & Size:______________

• C-Welding Parameters

i) Current :_____________ Amp ii) Voltage: ________ Volts iii) Welding Speed:_____________ iv) Type of Welding: _____________ v) Flux type (for SMAW) :___________________ vi) Gas Composition & Flow Rate (for MIG / MAG Welding)

______________________ vii) Welding Wire Specs : Material: _____________ & Size:______________

2. Steel Coils may be used by manufacturers having BIS approved de-coiling facilities.

3. Facilities for manufacturing and stamping/punching of foot ring and VP assembly should be available within the manufacturer's premises.

4. Calibration of all testing/measuring equipment should be done as per BIS Scheme of Testing and Inspection and/or as advised by BPC.

B. Facility Requirements:

" The facility requirements and the specifications given below do not form an exhaustive list. Manufacturer shall be required to follow all other specifications given in the relevant IS standards and BPC drawings along with instructions issued by BPC/BIS from time to time even if they have not been spelt out here.

" The availability of these facilities is essential for all the manufacturers who intend to participate successfully in the tender.

1. Welders engaged in all the welding operations to be qualified.

NOTE: Certificate of assessment to be submitted as per the enclosed formats available in ANNEXURE VIII.

2. Joggling facility to Joggle Upper Half for C- welding

3. Electronic weighing scale with digital display with maximum least count of 10 gms for Water capacity determination.

NOTE: Water capacity determination to be done by weight method only.



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4. Laboratory set up for density determination of water to be made available as per IS 4730: 1994. This density shall be used for arriving at Water capacity by weight method.

5. Calibrated measures duly verified and stamped by Weights and Measures for 500ml, 1000 ml, 2 lts, 5 lts, 10 lts and 20 Lts must be available.

6. Standard weights duly verified and stamped by Weights and Measures for 50gm, 500gm, 5kg, 10kg and 20kg must be available.

7. Electronic weighing scale with digital display with maximum least count of 10 gms for Tare weight checking of following capacity.

a) Capacity = 60 kg for tare weight b) Capacity = 100 kg for water capacity of cylinder

8. An independent work station for carrying out closing in operation of halves carried.

9. Independent Dial gauge set up as per the requirements of IS 9121: 2005 for checking of threads for

a) Bung b) S C Valve

10. Blanking machine for Acceptance Test sample preparation.

11. Set up for checking the maximum eccentricity of the welded V.P. Ring with respect to the bung available (max eccen. 3mm)

12. Bung eccentricity checking set up for ensuring free suspension of halves.

13. Set up for checking of Ground Clearance.

14. Calibrated set up for measurement of Total Height of cylinder with slide ruler.

15. Verticality checking set up as per IS 3196(part 1): 2006.

16. Hydraulic/ Pneumatic valve fixing machine OR Torque wrench set up with limit switch arrangement for fixing of SC Valve on the bung.

17. Valve tightening set up with provision to set and check tightening torque.

NOTE: Pressure torque characteristic curve to be developed and display at the valve fixing station. The wrench shall be calibrated as per IS 7145: 1973.

18. Torque wrenches conforming to IS 7145: 1973 and IS 7268: 1974.

NOTE: Stand by torque wrench shall be maintained apart from the one in use for regular production for purpose of cross verification of effectiveness of regular one.



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19. Set up shall be made available for verification of torque as per clause 7 of IS 7145: 1973.

20. Heat Treatment Furnace with unloading platform of sufficient length to stock 10 cylinders/ row for 10 minutes before removal.

C. Process Specifications & Details:

The following are the list of operations in cylinder manufacturing with details / conditions that are mandatory for manufacture and supply of cylinders:

1. Shearing the LPG steel sheets into squares or de-coiling the LPG steel coils.

2. Circle cutting to be done with the help of proper tools so that correct dimensions are maintained and straight edges are within allowable limits.

3. Deep drawing should be done on a press such that wrinkles and die marks are within acceptable limits specified in IS 3196.

4. Trimming of halves should be done with the help of a fixture so as the correct height of the half is maintained across the circumference.

5. Bung hole punching should be done with the help of a fixture that should locate the half and ensure non-eccentric punching of bung hole so that rejection due to eccentricity is eliminated at the manufacturing stage. The concentricity of bunghole should be as per IS 3196.

6. Degreasing to be done with caustic soda solution at minimum temperature of 80o Celsius so as to make the surface of the halves free from oil, grease, dirt or any other deposits. The system should be acceptable to BIS & BPCL. Preferably, suitable mechanical system to be used that ensures cleaning at all points.

7. Deburring of halves edge to be done with buffing wheel.

8. Bung welding edge preparation: Edge filing to be done with motorized grinding wheel.

9. Bung stamping: Standard stamping (all stampings except the serial number) on the bung should be done before welding and with the help of a stamping machine (manually not allowed).

NOTE: Bung Inspection: the bung shall be checked for its threads as per the requirements of IS 9121: 2005 for which a dial gauge set up shall only be adopted to be for checking threads for L1, L9 and truncations. At least 5 pcs per 1000 pcs of bung shall be checked and record be maintained.

10. Bung Welding to be carried out with the help of an automatic process like submerged arc welding, MIG/MAG welding etc. and complete fusion and penetration of weld joint to be ensured. (Manual welding not allowed).



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11. Joggling on Upper Half shall only be used as method of fitment of halves for C-welding. The representative diagram is as below.

{>e Lower Half < 2.5 e} Upper Half

(b) (> 3 e)

NOTE: The Joggling Joint shall have overlap of minimum of three times the agreed finished thickness.

12. Halves preparation for C-Welding: The two halves should be assembled by a suitable method. Motorized buffing wheel to be used for carrying out the weld preparation.

13. Closing in operation for halves: The operation shall be carried out at an independent work station. 100% check for straightness of the assembled halves shall be checked.

14. C-Welding to be carried through an automatic process like submerged arc welding or MIG/MAG welding out as per relevant IS specification to ensure complete fusion and penetration of weld joint. MIG/MAG welding preferable. The ratio of width of weld to height of weld shall not be more than 1/4.The welders carrying out the welding are required to be periodically certified.

NOTE: The declared qualified welders shall only be employed.

15. Stay plate blanking/straightening to be done on blanking press. It should be ensured that the edges are not sharp and the size of the stay plates is uniform.

16.Stay plate stampings: Standard markings to be done before welding on a stamping machine (manually not allowed) with proper fixtures to ensure equi-spaced markings in a straight line. Letter font size should be 6mm.

17. Stay plate bending: To be done on press using a die to ensure uniform bending.

18. VP Ring to stay plates welding should be done with the help of a fixture to ensure non-eccentric, equi-spaced and vertical stay-plates on VP ring.

NOTE: a) The VP Ring shall conform to the following specification:

Code Outer Diameter Thickness Min Weight/ pc

IS 1239 21.8 to 21.0 mm

2.65 mm 700 gms



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b) VP ring joint should be approximately positioned at centre of one of the stay plate welding. Welding can be done manually on the above-mentioned fixture.

19. VP ring/stay plate assembly welding to shroud: Fixture to be provided so that the assembly is properly located with respect to bunghole to ensure non-eccentric welding. Welding can be done manually on the above-mentioned fixture. Undercuts on the body to be avoided. The VP ring eccentricity be checked by mounting the dial gauge on a mandrel (locating the center line of the bung hole) threaded to/ inserted in the bung, the rotating that on the VP ring.

NOTE: The maximum eccentricity of the welded V.P. Ring with respect to the bung shall not be more than 3 mm.

20. Footring cutting: The thickness of footring material shall not be less than that of body steel. Footring cutting should be done on shearing/blanking machine with appropriate fixture so as to ensure that the width and length of the footring plate are cut according to specifications.

21. Footring-hole punching: To be done on a punching machine/press (manual not allowed) with proper fixtures to ensure that the positioning and alignment of holes with respect to footring edges are as per approved drawing.

22. Footring markings/stampings: Stampings to be done on stamping machine/press (manual not allowed) with proper fixtures for correct alignment and positioning of markings with respect to the holes and edges of footring as per approved drawing. Depth of markings/stampings should be 1mm.

23. Footring ‘O’ formation: To be done on press with a die to ensure the uniformity in ‘O’ formation and no warping of footring. The closing in of the O formation , i.e the distance of the edge/ end from the vertical face shall not be more than 2 mm.

24. Footring to body welding: It should be done with the help of a rotation-based fixture to ensure non-eccentric footring with respect to body and for guarantying equi-spaced and equal length footring to body welds. Manual welding not allowed. Footring weld should be positioned at the centre of any of the weld joint joining the footring to cylinder body. The deviation from the vertical shall not exceed the limit vide clause 8.5.5, IS 3196(part 1): 2006.

NOTE: Ground Clearance: The cylinders shall have a minimum ground clearance of 10mm.

25. Total Height: The total height of cylinder shall be 625+/-5mm only. A proper calibrated set up be used for checking the overall height of the cylinders.

26. Sr. No and batch no punching: Legible and proper punching to be ensured. Auto incremental serial number punch should preferably be used for stay plate punching. However, manual punching is also permitted. Marking shall be as per the specifications of the BPC drawing (LPG: EQ: D142 Rev 2)



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27. Stress relieving: Continuous furnace should preferably be used for heat treatment process. Heat treatment parameters to be certified by BIS and BPCL to be informed on the same. Heat treatment should be carried out as per IS-3196 (Part-I) and scheme of testing and inspection of BIS. Furnace operation to be properly controlled and appropriate procedures to be followed. Following records should be compulsorily maintained:

a. Calibration record of temperature controllers b. Temperature vs. time graphs for the furnace c. Thermocouples (number, location and calibration)

NOTE: 1) The cylinder coming out of the furnace shall not be manually handled for at least 10

minutes to avoid denting. Sufficient space must be provided at the unloading end of the furnace to hold them for 10 minutes after furnace.

2) NOT MORE THAN TWO BURNERS SHALL BE CONTROLLED BY 01(ONE) THERMOCOUPLE.

28. Hydrostatic Test: Each Cylinder should be tested as per IS-3196(PART-III). Additionally following should be observed: (a) Number of pressure gauges should be equal to the number of testing points with

positive segregation. (b) Illumination to be minimum lux level of 100. (c) The HST fixture should compulsorily be rotating type that facilitates inspection of all

areas of body. Arrangement to be made for inspection of foot ring weld and bottom portion of the cylinder during the test.

(d) The water filling gun preferably should be pneumatically operated and should have auto fixing, auto filling and auto evacuation to avoid spillage of water on the outer surface of cylinder under test.

(e) Cylinders should be completely dried from the outside. Test pressure should be retained for minimum 30 sec. after ensuring complete drying of the cylinder.

(f) Wooden / Teflon mallet shall be used to tap the cylinder especially at the C-weld during HST to detect pin hole, porosity and other weld defects if any.

(g) Proper records viz. no of cylinders tested, defects observed etc. should be maintained.

29. Grit blasting: The Entire surface of cylinder including VP Ring Assembly & footring shall be grit blasted after heat treatment & HST test as per IS 3196 (Part-I). Preferably Airless Grit blasting facility be used. Additionally following should be observed: (a) Grit blasting machine to ensure cleaning of rust/scales from cylinders and proper

surface preparation. (b) Finish all over the surface of the cylinder shall be as per grade SA 2.5 as per IS 9954. (c) The quality of shot blasting in shadow zone of footring & VP assembly should be

specifically checked.

30. Metallizing: The entire surface of cylinder including VP Ring Assembly & footring shall be shall be metallized (spraying with Zinc metal) immediately after grit blasting. Additionally following should be ensured: (a) Zinc wire used should be conforming to IS 12447. (b) Zinc layer of minimum 40 microns thickness to be applied.



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(c) Uniform metallizing with minimum specified coating thickness on the cylinder including shadow regions of Stay plate and Foot ring.

NOTE: Metallization shall be done immediately after Grit Blasting.

31. Primer Coating and Signal Red Painting: After metallizing, uniform total coat thickness of minimum 30 micron of zinc chromate primer & paint should be applied on each cylinder. Further, minimum thickness of both the coats i.e. primer & paint should be 15 microns each. Sufficient drying time shall be given to all the coats by providing adequate facility (either sufficiently long chain-conveyor or an especially demarcated drying area to store 1-day’s production). Uniform coating or primer and paint on the cylinder including shadow regions shall be ensured. The coat thickness measurement shall be done in accordance to procedure as described under 22.2 of IS 3196 (part 1): 2006.

32. Bung thread tapping and Internal Cleaning: Bung threads to be cleaned/tapped using 3/4” 14-NGT tap before fixing the valve on the cylinder. Internal cleaning of cylinders to be done using air, light/magnet etc. so as to clean the internal surface of the cylinder of all foreign material, rust etc. as required by BIS/BPCL.

33. Valves and Valve fitting: Valves to be fitted on the LPG cylinders shall be brand new, spring loaded, self closing type valves manufactured as per BPCL requirement / specification conforming to IS: 8737 latest edition and duly covered by BIS certificates. Additionally following should be observed: a) The valve tightening torque must be within the range of 145+ 15 lbft. Valves. to be

fixed using jointing materials conforming to IS: 3465, 1966 or PTFE (TEFLON- " inch, min. 2 rounds & min. 40 microns thick) tape conforming to IS: 14643: 1999.

b) The torque wrenches shall conform to requirements of IS 7145: 1973 and IS 7268: 1974.

c) Valve fitment area flooring should be laid with concreting and should be free from dust. Rubber mat should be laid on concreted area.

NOTE: a) SC Valve Inspection: the valves shall be checked for its threads as per the requirements of IS 9121: 2005 for which a dial gauge set up shall only be adopted to be for checking L1, L8 threads and truncation. b) At least 5% of box of each consignment shall be selected and out of selected boxes 10 pcs shall be checked and records be maintained w. r. t

a) Markings and Stamping for correctness and legibility b) Critical dimensions

(i) Collar Diameter as per specifications (ii) Hex diameter (iii) Neck diameter (iv) L1, L8 and C (v) Valve Head Inner Diameter etc

34. Tare weighing and punching: Tare weight of the cylinder includes the weight of the valve. Additionally following should be observed: (a) Least count of the weighing machine shall be at most 10gms.



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(b) It should be properly calibrated with standard weights at least once per shift (both loading and unloading).

(c) Tare weight to be punched on the bung as well as the stay plate. (d) Gross Wt. (14.2 kg + tare weight of the cylinder) should be punched on the stay plate. (e) Avoid bending of stay plates while punching also ensuring clarity of punching.

NOTE: Cylinders with more than + 100 grams variation between the actual and stenciled/ punched tare weight shall not be accepted.

35. Screen Printing / stenciling: To be done using proper fixtures/locators ensuring positioning and alignment of logos/slogans/tare-weight with respect to the locators on the body as per drawing.

36. Pneumatic test to be done as per IS 3196 Part III. Additionally following should be observed: (a) The inside of the tank for Pneumatic test should be painted with white paint. (b) Illumination should be proper both outside and inside the tank. (c) Air filling / removing adaptor to be as per specification and should not damage the

valve pin. (d) Cylinder should be filled with the air as specified in IS: 3196 and tested for any

leakage at a pressure of 12 kgf/sqcm for a minimum 60 sec. (e) Testing shall be carried out after fixing the safety cap on the valve. (f) It should be made sure that no water or foreign particle enters in the valve. (g) A fixture to be provided so that the cylinders are completely submerged and held in

place in the water while testing. Provision to be made for rotating the cylinder during the test.

(h) After air evacuation, presence and correct position of joint packing (‘O’ rings) in the outlet of valves to be checked and safety caps should be fixed on the valve immediately.

(i) No soap solution/water is to be used for checking leakage through the valve pin.

37. Other Tests as per IS 3196: Hydrostatic stretch test, burst test and other tests and the minimum thickness requirements including type tests as prescribed in IS:3196 Part I & IS 3196 Part III (latest), viz fatigue testing /cyclic testing.

38. The water capacity of cylinders shall be determined by weight method only. Laboratory set up for density determination as per IS 4730:: 1994 of water to be made available. This density shall be used for checking of water apacity by weight method.

39. The density of the water used for water capacity check shall be established and the density of water shall be determined in an approved in house LABROTARY set up as per IS 4730: 1994.

40. The internal/external surface of the cylinder shall be free from any defects. Cylinders with surface defects such as cuts, dents, C-weld waviness etc. shall not be accepted.

41. After final inspection, finished cylinder should be stacked with safety cap fitted on valve, in separately demarcated area.



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D. Inspection & Quality Control:

1. BIS shall be appointed by the manufacturer as the Inspecting Authority. Stage-wise inspection and final certification of cylinders shall be carried out by BIS. BIS Test Certificate must be sent along with each consignment of cylinders delivered to the Corporation.

2. If and when necessary, the manufacturer will be required to carry out additional testing/ inspection over and above what is provided in IS: 3196 Part I/Part III.

3. Additionally, BPCL reserves the right to collect raw material and/or finished product from the manufacturer’s premises or LPG Plants and send them for testing at LERC or any other testing lab as found suitable by BPCL and take suitable action based on the test reports as deemed fit. Successful tenderer shall extend necessary assistance in terms of providing samples of requisite number and type, at his own cost, and shall cooperate in the testing process.

4. BPC reserves the right to carry out regular inspection of manufacturer’s facilities to check adherence to the quality control procedures. Manufacturer shall extend necessary cooperation during inspection of facilities by BPC and shall provide for any additional samples if required, free of charge.

5. Various records in respect of manufacture of cylinders as required by BPC and BIS and as advised from time to time, shall be maintained by the supplier. These records should be made available at the time of inspection.

6. In case any deficiency is found in the manufacturer’s manufacturing facilities or with the finished product, BPC reserve the right to suspend the manufacturer's production and/or despatches without any notice.

7. The cylinder manufacturer shall implement In-coming inspection of SC valves in line with the requirements as per IS 8737and also check the valves for any other defects/leakages. The valves shall be checked for its threads as per the requirements of IS 9121: 2005 for which a dial gauge set up shall only be adopted to be for checking threads for L1, L8 and truncations. Appropriate action shall be initiated against the cylinder manufacturer incase any defects are observed in the valves supplied on the cylinders.

8. E. ADDITIONAL REQUIREMENT

9. The cylinder manufacturer shall give complete details of the cylinders manufactured and supplied to BPCL as per Format given in the next page. The details shall be given in a CD, IN MS EXCEL FILE. One CD shall be given to the plant and one to CLEM, Sewree. These shall be submitted on quarterly basis i. e., Jan - March, Apr – June, July – Sep and Oct – Dec. The data of any quarter shall be submitted in the first week of the new quarter.

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TENDER NO: LPG: EQ: 09-10:08 ANNEXURE IV

TERMS & CONDITIONS OF AGREEMENT

Signature : Seal :

Page 1 of 18

TERMS & CONDITIONS OF AGREEMENT FOR PROCUREMENT OF 14.2-KG LPG CYLINDERS WITH SC VALVES

1. CYLINDERS TO BE SUPPLIED (a) The successful tenderers on whom Contract/ Purchase Order is placed

shall duly supply 14.2-kg capacity LPG Cylinders manufactured as per IS:3196 (Part I) and drawing No. LPG:EQ:D142 Rev2 to the Corporation as per the rate and delivery schedule specified in the Contract/ Purchase Order placed by the Corporation on the successful tenderer.

(b) Each cylinder shall have to be fitted with a self-closing valve

conforming to IS:8737 and enclosed valve-assembly drawings. SC valve shall have to be procured by the successful tenderer directly.

(c) Successful tenderer should ensure that the cylinders meant for supply to BPCL are manufactured following the prescribed norms of CCOE & BIS and/or any written instructions given by BPCL.

(d) This is basically a rate contract and quantities are not guaranteed.

However, BPCL reserves the right to increase the contract quantity up to 30% of the original contract quantity and the successful tenderer shall be bound to accept such increase in contract quantity. Any increase over and above the 130% of original contract quantity shall be done only after obtaining written confirmation from the successful tenderer.

2. SUPPLY AND PERFORMANCE GUARANTEE (a) The successful tenderer, within 10 days of placement of Letter of Intent

shall deposit an amount of Rs. 10 lakhs or 5% of the order value, whichever is lower, with BPCL for Supply and Performance Guarantee. This amount shall have to be deposited by way of crossed A/c Payee demand draft drawn on any Nationalised or scheduled bank in favour of M/s Bharat Petroleum Corporation Ltd. and payable at Mumbai. No interest is payable by BPCL on the amount for Supply and performance guarantee so collected. Those vendors willing to convert EMD to Supply & Performance Guaratee can send a request letter for our consideration.

(b) Amount of the Supply and Performance Guarantee shall be refunded

only after the expiry of the guarantee period of the LPG cylinders supplied by the successful tenderer. BPCL shall be entitled to deduct from this amount any loss or damage which BPCL may be put to by reason of any act or defective LPG cylinders, PR or any other liabilities



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or default recoverable by BPCL from the successful tenderer and to call upon the successful tenderer to maintain the amount at the original level by making further deposits.

3. SET OFF Any sum of money due and payable to the successful tenderer (including the supply and performance guarantee amount returnable to him) under the Contract, may be appropriated by BPCL against any claim arising under the Contract against the successful tenderer. 4. PRICE

(a) The price payable per cylinder shall be calculated as per the price escalation/de-escalation formula given below:

RM = [ R + SPM(1+SsM ) - SP(1+Ss) ] (1+EcM) + SCV

(1+Ec) Y Y

where RM is price payable per cylinder (Rs.). Only Sales Tax/VAT (as applicable and declared by the successful tenderer, transportation charges (based on distance of successful tenderer’s factory and LPG plant and at the per cylinder per km rate quoted in the price bid) and octroi as applicable shall be payable extra. R is quoted/negotiated ex-factory price (Rs.) which will include all applicable duties, taxes (except Sales Tax/VAT), transit insurance (if Successful tenderer desires to do so), loading & unloading charges and any other incidental charges and such other duties and levies as may be imposed for sale and delivery of the said cylinders. Only Sales Tax/VAT as applicable and declared by the successful tenderer, transportation charges quoted, and octroi as applicable shall be payable extra. SPM is revised basic ex-steel factory price of LPG body steel (IS-6240) of SAIL ex-Bokaro (Rs./MT) between 1st and 15th of the month, to arrive at a weighted average cylinder price of a particular month SP is basic ex-steel factory price of LPG body steel (IS- 6240) of SAIL ex-Bokaro as on 01/11/09. Ss is the original Central Sales Tax on steel Ec is the Original Excise Duty on cylinder



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SsM is the new Central Sales Tax on steel EcMis the new Excise Duty on cylinder Y is the notional yield of 55 cylinders / MT considered only for the purpose of escalation/de-escalation and arrived at after taking into account the yield patterns of body steel.

SCV is the escalation/de-escalation on account in the price of SC Valves. It will be based on the change in the Basic price of High Grade Zinc at Mumbai as declared by M/s. Hindustan Zinc Ltd., and basic price of Copper Cathode at Mumbai as declared by M/s Hindustan Copper Ltd. as per the following formula:

For every one rupee increase or decrease or part thereof in the basic price of Copper Cathode and High Grade Zinc per kg at Mumbai, the unit ex-factory price of the valve will increase or decrease proportionately @ Rs.0.14 (fourteen paisa) and @ Rs. 0.10 (ten paisa) respectively plus applicable Excise Duty, Education Cess & Higher Education Cess on Excise Duty proportionately.

For the purpose of calculating escalation/de-escalation on account of SC valves, the difference in basic price of High Grade Zinc and Copper Cathode per kg at Mumbai as on 01/11/2009 and that prevailing on the first day of previous month shall be considered for the subsequent months supply.

(b) The above mentioned escalation/de-escalation formula takes into account the effect of changes in price of body steel, sales tax on steel, excise duty on cylinders and price of Copper Cathode & High Grade Zinc. Escalation/ De-escalation on any other account will not be permitted.

(c) Price escalation/de-escalation shall be determined every month based on the steel prices, rate of sales tax on steel and rate of excise duty on cylinder ruling between 1st and 15th of the month to arrive at the monthly weighted average cylinder price.

(d) CENVAT credit available to the successful tenderer on various inputs

including LPG Valves may be availed by the tenderer by following necessary procedures and completing all the formalities, documentations etc.



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The CENVAT credit availed by the tenderer need not be passed on to the Corporation separately. However, if the tenderer for any reason fail to avail this CENVAT credit on various inputs including LPG Valves, BPCL shall in no way assume any responsibility for the same.

(e) The tenderers, who submit their offer with VAT set off/ITC credit applicability shall also submit the copy of VAT/TIN Registration Certificate along with Credential Bid. The transaction documents issued by such tenderers shall enable the Corporation to claim the VAT set off/ITC Credit. In the event of VAT set off/ITC credit become non claimable due to non-adherence of documentation at tenderers end, the differential (VAT set off/ITC Credit) shall be claimed from all such tenderers.

(f) In case of any amendments in the Excise and/or Sales Tax and/or Value Added Tax (VAT) law on finished Cylinders during the validity of the contract, its effect shall be adjusted/ reimbursed. Parties have to produce Gazette notification, proof showing that duty charged is totally on account of excise rate and/or Sales Tax and/or VAT revision and not due to any change in assessable value or otherwise, and invoice us accordingly. Same principle will be observed for de-escalation also.

However, any increase in the rate of Sales tax or VAT or Excise Duty on LPG cylinders due to change in the annual Turn-over or full/partial withdrawal of sales tax or VAT or excise duty concession to the successful tenderer shall not be reimbursed.

(g) Inter-state Movements: The successful tenderer shall forward a

statement indicating the despatches made to various locations, state-wise along with copy of the relevant invoices. On receipt of above statements the concerned Regional Offices/Locations will be advised to issue the C-Forms for inter-state movements of cylinders. This statement should be submitted on quarterly basis in the format specified by BPCL along with the invoice copies by the 5th day of the following month e.g. For the period April-June latest by 5th of July. In case the successful tender fails to obtain C-Forms for inter-state supplies, BPCL shall not be held responsible for payment of additional tax.

5. PAYMENT

The following documents should be submitted along with the invoice: (a) Face Sheet (b) Invoice, mentioning the actual date of receipt of consignment at the

destination. (c) Copy of delivery challan duly acknowledged by the location



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(d) Lorry Receipt (e) Central Excise Gate Pass –Invoice (f) Packing list (g) Proof of the application along with the payment made to CCOE for

obtaining filling permission (h) Octroi Receipt, if applicable

Payment terms shall be 15-days which implies that payment shall be released by BPCL within 15 (fifteen) working days, on ‘best-effort’ basis after 15 days of receipt of invoice along with all enclosures as mentioned above. The payment shall be done through National electronic fund transfer (NEFT). 6. QUALITY CONTROL / SUSPENSION (a) The successful tenderer is required to strictly adhere to the quality

control/inspection procedures stipulated by Bureau of Indian Standards and Chief Controller of Explosives, and advice given by the Corporation and Oil Industry Technical Committee (OITC) from time to time.

Stage-wise inspection should be carried out as per scheme of testing of BIS. Manufacturer should employ manpower required at each stage of inspection such that they at least have minimum specified skills/qualifications. The in-charge of quality control & production department and quality supervisors should possess minimum qualification of diploma in Engineering. Information should be promptly forwarded to BIS and CCOE in case these key persons looking after critical aspects of production and quality control of LPG Cylinders are changed. Any change in the Plant & Machinery should be with prior approval of BIS and CCOE.

(b) Without prejudice to the other provisions of the Contract, BPCL

reserves the right to order suspension of production and supplies of the Cylinders by the successful tenderer in case any lapse in quality is detected by members of OITC or by officers/ representatives of BPCL (like first fill leak), or if any lapse is reported by any statutory authority, quality complaint from any source, malpractice detected by any authority etc. at any time during the currency of the Agreement.

(c) Such suspension orders will be intimated in writing by fax and/or Registered Post either by the Corporation or by OITC to successful tenderer. On receipt of suspension order, successful tenderer shall



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carry out detailed root-cause analysis for failure of the cylinder/quality problem.

Corrective and preventive actions to be taken for a particular type of failure should be identified and implemented by the successful tenderer. The successful tenderer shall submit an action-taken report, duly verified by BIS, to BPCL. BPCL shall revoke the suspension based on the adequacy of this action-taken report. The successful tenderer will be required to complete all actions necessary to obtain clearance from Corporation/OITC for resumption of production and despatch at the earliest but not later than 20 days from the date of suspension. If request for the clearance from Corporation/ OITC is not applied for within the said period of 30 days, the Corporation shall have the rights solely at its discretion to cancel the remaining order quantity and forfeit the supply and performance guarantee amount (as specified in para 2(c) by assuming that the whole quantity had been called off), without prejudice to any other right as may be available to the Corporation both under law and the contract terms contained in this agreement for the recovery of the damages.

(d) Despite the order of suspension, if the successful tenderer produces

and/or despatches any LPG Cylinders, the Corporation shall be entitled to refuse taking delivery of such consignments and the successful tenderer shall not be entitled to claim any damage or compensation for any loss that may occur to him, from BPCL on account of refusal to accept such consignment. In such cases BPCL shall take necessary action which may be deemed fit against the successful tenderer.

(e) Whenever the successful tenderer is under suspension, the call-

off/allocation for the suspended party may be pruned to the extent of undelivered quantity against that call off/allocation at the sole discretion of BPCL. Extra cost, if any, borne by BPCL while procuring (from other suppliers) and/or placing such shortfall quantity to the short-supplied plant, as outlined above, shall be recovered from the defaulting vendor as per clause 10 below.

(f) If the successful tenderer is under suspension at the start of a

month/time of placing call-off or PO and the suspension is not revoked till 7th of the month, then the notional allocation based on the requirement of the plant/plants as the case may be to a maximum of 130% of the prop. Monthly order quantity of the Successful Tender will



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be calculated, pruned and reallocated at the sole discretion of BPCL. Extra cost, if any, borne by BPCL while procuring (from other suppliers) and/or placing such pruned quantity, as outlined above, to the designated plant shall be recovered from the defaulting vendor as per clause 10 below.

(g) If the successful tenderer is a common supplier for one or more OMCs,

and in the event of their suspension by one OMC, then it shall be construed as suspension by BPCL also. However revocation will be done by individual OMC.

7. DELIVERY SCHEDULE / REVISION BEFORE EXPIRY OF DELIVERY SCHEDULE:

(a) Based on the actual requirements, BPC will be placing the call-offs

(also called P.O. or allocations) from time to time. The successful tenderer shall be bound to accept call-offs up to 130% of the prorata quantity (prorata quantity = contract quantity/10. In case BPCL requires additional supplies (over and above the said 130% prorata level) during any period , then it can place call-offs for such additional quantities after getting a written confirmation from the successful tenderer.

(b) The successful Tenderer shall supply LPG Cylinders strictly in

accordance with the delivery schedule mentioned in the call-offs/PO/ allocation. The successful Tenderer shall note that the date of receipt of LPG Cylinders at the destination i.e. the Location of the Corporation as advised by the Corporation shall be considered as the date of completion of the supply as per the Order. In short the actual delivery shall mean the date of receipt of LPG Cylinders at the location. Successful tenderer shall have to furnish a ‘Delivery Completion Report’ on monthly basis in the format given by BPCL along with a copy of proof of receipt of material/receipted delivery challans, for all supplies made during that month, by the 10th day of the succeeding month or by the 3rd working day after the extended period, in case of extension.

(c) In the event of the successful Tenderer anticipating difficulty to meet

the delivery schedule, the successful tenderer should submit a written request for extension, in case he desires the extension, explaining the reasons for the delay. It will be the Corporation’s sole discretion to accept or reject the request. The Corporation will evaluate the request of the successful Tenderer and in case the Corporation is satisfied, the Corporation may grant a suitable time extension to a maximum of one month with the applicable Price Reduction @1% for each fortnight of



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extension to a maximum of one month extension with 2% and advise the revised delivery schedule, in writing. The decision of the Corporation in this regard will be final and binding on the successful Tenderer.

(d) Payment for supplies shall be made at the rate on which call-

offs/PO/allocations have been issued and date of delivery shall be irrelevant for the purpose of deciding the rate of LPG Cylinders. This shall also apply to cases where time extension for delivery has been granted by BPCL.

8. FAILURE AGAINST DELIVERY SCHEDULE AND PRUNING &

REALLOCATION FOR QUANTITIES UNDELIVERED: (a) BPC shall review the supply position after completion of the Delivery

Schedule. If the successful Tenderer fails to adhere to the said Delivery Schedule as per para 7(a) above or Revised Delivery Schedule which may be given as per 7(c) above, the following provisions shall apply:

(i) BPC may prune and reallocate the quantities short supplied by the

Successful Tenderers who could not meet the schedule given. (ii) Alternatively BPC may consider accepting late delivery of

consignment already dispatched by the Successful Tenderer before the scheduled date of delivery, based on request by such Successful Tenderer who could not meet the schedule given. Payment in such cases shall be done as per clause 7(d) above and PR as applicable with extension will be recovered.

(iii) In the event of some of the Successful Tenderers failing to

complete the supply even after grant of time extension, BPCL shall have the discretion to prune all such undelivered quantities and reallocate to other suppliers as decided by BPC.

(iv) Extra cost, if any, borne by BPCL while procuring (from other

suppliers) and/or placing such shortfall quantity to the short-supplied plant, as outlined in (i) & (iii) above, shall be recovered from the defaulting vendor as per clause 10 below.

(b) The limitation on order quantity will not be applicable for the reallocation of pruned quantities.

(c) BPCs’ decision in regard to Pruning & Reallocation on case to case

basis and the methodology followed shall be final.



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9. PRICE REDUCTION FOR FAILURE TO SUPPLY AS PER

SCHEDULE (a) In the event of full or partial failure to supply as per slated/revised

Delivery Schedule given under (7) above, Price Reduction @ 5% of the NDP shall be levied on the entire undelivered/late delivered quantity.

(b) In the event of time extension granted by BPC beyond the original delivery schedule, Price Reduction @1% per fortnight to a max. of 2% of NDP, i.e. only one month’s extension will be granted. In other words only in case of failure to supply even after grant of extension, PRICE REDUCTION @5% of NDP shall be levied.

(c) Successful tenderer shall not be entitled to claim waiver from

PRICE REDUCTION because of the Prunning & Re-allocation of the short supplied quantities as described in (8) above.

10. RISK PURCHASE (a) In case the Successful tenderer fails to supply the material as per

the delivery schedule/revised delivery schedule due to any reason whatsoever, including suspension, BPCL reserves the right to procure similar material at the Successful tenderer’s risk, cost and responsibility from other sources or even from the same tenderer (on successful tenderer’s request and at BPCL’s sole discretion). The successful tenderer shall have to bear the differential cost between what would have been payable to him/her and the cost actually paid by BPCL for such procurement and/or placement of such shortfall quantity to the short-supplied plant.

(b) In case the party is under suspension at the start of the month, no

orders will be released. However, proportionate order quantity due from the party, as described in clause 6(f) above, shall be procured from other parties under risk purchase.

(c) Such penalty shall be levied over and above the PRICE

REDUCTION recoverable from the party on account of such non-delivery of such material. However if the successful tenderer informs BPCL about his/her inability to supply the material within 7 days of placing of call-off/PO then no PRICE REDUCTION for non-supply shall be levied. However, successful tenderer shall still be liable to pay the differential risk purchase amount mentioned above.



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(d) If due to any breach committed by the Supplier, the order is terminated, the Supplier will be liable to make good the loss or damage suffered by the BPCL in line with clause (a) above.

11. RECOVERY OF OUTSTANDING AMOUNTS : It is also agreed and understood that for the purpose of calculating the damages recoverable, it will be assumed that the contract continued to remain valid even after expiry of the contract period and BPCL can recover such amounts from the pending bills of/Supply and Performance Guarantee amount deposited by the Successful Tenderer.

12. FORCE MAJEURE

The Contract is subject to standard FORCE MAJEURE conditions set out hereunder:

(a) If at any time during the continuance of the contract, the performance

in whole or in part or any obligation of either party under the contract shall be prevented or delayed for a continuous period of more than seven days by reasons of any war, hostility, acts of public enemy, civil commotion, sabotage, fires, floods, explosions, epidemics, quarantine restrictions, strikes, lockouts, any order or decree of any Government or Governmental Authority or rationing, whether imposed by law, decree, regulation or voluntary co-operation of BPCL at the insistence or request of the MOP & NG or person purporting to act therefor (hereinafter referred to as EVENTS) then, provided notice of happening of any such event(s) with supporting proof required thereof is given by either party to the other within 15 days from the date of occurrence thereof, neither party shall by reasons of such event, be entitled to terminate the contract nor shall either party have any claim for damage against the other in respect of such non-performance or delay in performance, and the deliveries under the contract shall be resumed as soon as practicable after such event has come to an end or ceased to exist.

(b) In the event of any shortfall in the delivery of the LPG Cylinders due

to occurrence of a force majeure event for a continuous period of 30 (thirty) days or more, Corporation may solely at their discretion reduce the total contracted quantity, to the extent of the quantities of LPG Cylinders which were required to be supplied during the existence of the force majeure conditions on a prorata basis, and the successful tenderer shall not be entitled to claim any damages from the Corporation on account thereof. Nor the Corporation shall be entitled to claim damages from the successful tenderer on account of non-



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delivery of such LPG Cylinders pruned from the total contracted quantity.

13. RAW MATERIAL

(a) Presently the Corporation approved steel suppliers are M/s. SAIL,

TISCO, ESSAR, SSP, ISPAT, LLOYDS and JINDAL. The parties will be authorized to use steel only from the above suppliers or any other supplier/ import source as approved by the Corporation from time to time.

(b) The successful tenderer is exclusively responsible for procurement of

all raw materials, including SC valves, conforming to applicable specifications to meet the supply as per contracted delivery schedule.

(c) BPCL reserves the right to specify the vendors from whom raw

materials and components shall be procured. Successful tenderer shall procure such raw materials and components from BPCL approved parties only.

(d) In respect of the components which are required for the manufacture of

LPG Cylinders, the successful tenderer shall from time to time during the currency of this Contract inform BPCL, the list of such items including the names and addresses of the suppliers of such items and the measures taken for ascertaining the quality assurance of such items. However for components like Foot Ring/ Vertical Stays etc the manufacturer shall ensure in house fabrication of the same and shall not get the same fabricated from outside, without the permission of the Corporation.

14. INSPECTION

As per statutory requirement, the successful tenderer shall prepare Test Certificates, duly signed by BIS. The Corporation reserves the right without prejudice to its rights under any of the provisions contained in the Agreement to inspect the LPG Cylinders at the successful tenderer's works for which purpose all required facilities shall be provided by the successful tenderer at his costs. 15. TEST CERTIFICATES

(a) As per statutory requirements, the successful tenderer shall prepare

four copies of test certificates for cylinders to be supplied, duly signed by the BIS. The distribution of copies is as under :



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• First Copy - To the consignee (Plant) along with a list of

Serial numbers of cylinders despatched • Second Copy - To CCOE, Nagpur along with 3 copies of

extract of cylinder serial nos. under covering letter for obtaining filling permission on behalf of BPCL

• Third Copy - To LPG Equipment Department, Sewree • Fourth Copy - Office Copy

(b) The extract of cylinder serial nos. to be provided to CCOE shall be in the following format:

Water Capacity _________ litres. LPG Cylinder Manufacturer : Approved vide CCOE's letter : Purchaser: M/s BHARAT PETROLEUM CORP. LTD

BIS Certificate Sr. No. of Cylinders Rejected Total * No & Date From To Cylinders

________________________________________________________ * Total does not include the Sr. No. of cylinders rejected and expended

in Acceptance / Burst tests.

(c) Cylinders not accompanied by BIS test certificates and/or copies of manufacturer's covering note (along with the Sr. No. of the cylinders) and/or proof of the application along with the payment made to CCOE for obtaining filling permission shall not be accepted.

(d) The Test Certificates along with the requisite fee should be prepared and sent to CCOE Nagpur without any delay or accumulation. The manufacturer is required to obtain statutory permission for filling of cylinders from CCOE at his own cost and within reasonable time.

16. DESPATCHES (a) All the LPG Cylinders will be despatched by the successful tenderer by

road only, on freight pre-paid basis, in accordance with the instructions



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issued by the Corporation from time to time. The consignments shall be sent on door delivery basis in full truck-loads/part truckload including unloading and stacking at the receiving location.

(b) The vendors are expected to inform the dispatch details as per the following format to the CLEM dept and the destination plant by email as and when the despatches are made-

SAP P.O.

No./ Dt.

Date of dispatch Delivery

Challan No.

No. of cyls.

despatched

Destination Plant

(c) The successful tenderer shall undertake transportation of LPG

Cylinders through established and reliable transporters.

(d) The successful tenderer, in their own interest may take out insurance cover for each and every consignment to take care of any transit loss, damage, shortage etc at their own cost. No payment shall be made by the Corporation towards cost of insurance to the successful tenderer.

(e) Adequate protection by way of proper packing, etc. shall be taken by the successful tenderer to ensure that the cylinders reach the destination without any damage/ paint defect(s).

17. GUARANTEE (a) The LPG Cylinders shall be guaranteed by the successful tenderer for

a period of 24 months from the date of manufacture, against manufacturing defects.

(b) In the event of manufacturing defects being detected at the time of

delivery or within the guarantee period, the successful tenderer will be directly informed in writing by the concerned Plant/Office. The successful tenderer will have the choice to inspect the LPG Cylinders at the concerned Plant within thirty days of despatch of such intimation, at their own cost. Additionally, a commercial penalty of Rs 25/- per defective cylinder shall be levied to cover the administrative cost. This is in addition to carrying out rectification /cost recovery of rejected cylinders. After inspection of the defective cylinders, at the sole discretion of BPCL:

(i) Those cylinders which can be repaired shall be handed over to the

successful tenderer for rectification of defects. The successful tenderers shall carry out the necessary rectifications at their own cost and to the full satisfaction of BPCL. The successful tenderer



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may also be required to deposit a suitable amount as guarantee for such cylinders being handed over to him for repairs.

(ii) In case the manufacturing defects noticed in the defective cylinders are beyond rectification, the Plant shall de-shape such cylinders. BPCL shall recover cost of cylinders so de-shaped from the successful tenderer’s pending bills/ Supply and performance guarantee amount. Neither the SC valve removed from such cylinders nor the scrap generated by de-shaping cylinders shall be handed over to the successful tenderer nor any cost adjustment done on account of the same.

(c) In case the manufacturer fails to rectify the defects noticed in the

cylinders identified as defective, within 60 days from the date of intimation, the Corporation shall have the right to recover the cost of cylinders prevailing on the date of recovery or original cost whichever is higher from the successful tenderer or from their pending cylinder bills and/or Supply and Performance Guarantee amount.

18. TEMPORARY STOPPAGE In case of temporary inability of BPCL to accept LPG Cylinders, BPCL shall not be held responsible for any loss/storage charges that the successful tenderer may have to sustain and the Company shall not be required to make any payment towards the LPG Cylinders already manufactured or any other payment on account of inventory carrying cost. 19. OBLIGATION TO SELL 14.2-kg CAPACITY CYLINDERS TO

PUBLIC SECTOR CORPORATION ONLY (a) The successful tenderer shall not engage in the manufacture, sale and

supply of LPG Cylinders of 14.2-kg capacity to any individual, firm or any company other than the public sector oil companies engaged in Marketing of LPG during or after the currency of this Agreement.

(b) The successful tenderer shall fulfil the commitments of the

Corporation on first priority. (c) Disposal of scrap arising out of the manufacturing process will not be

covered under the above provisions. All scrap arising out of the manufacturing process including whole LPG Cylinders which are rejected (while testing/ certification) and LPG Cylinders rejected by the Corporation may be disposed off by the successful tenderer, only after ensuring that such items are deshaped in the presence of BIS Officer/



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Corporation official so that the same can not be misused. The successful tenderer shall maintain proper records of all such rejections.

(d) The successful tenderer should strictly comply with provisions of latest

LPG control order 2000 and Gas Cylinder Rules 1981 and also any other statutory provisions.

20. TERMINATION

Notwithstanding anything contained in the Contract, BPCL shall have the right to terminate the Contract upon or at any time of the happening of any of the following events:

(a) If the successful tenderer shall commit a breach of any of the terms

and conditions of the contract and fails to remedy such breach within 15 (fifteen) days of the receipt of the written notice from the Corporation in regard thereto.

(b) i) On the death or bankruptcy of the successful tenderer if he be an

individual. ii) On the dissolution of the firm if the successful tenderer happens to

be the Partnership firm. iii) Liquidation, whether voluntary or otherwise, or the passing of an

effective resolution for winding up of the business of the successful tenderer if it be a company.

iv) On selling of the facilities or assets to any other individual or

company. (c) If any attachment is levied or continues to be levied for a period of

fifteen days or more upon the effects of the successful tenderer or of any individual or partner of the successful tenderer’s firm.

(d) If it is established that the Cylinder manufacturer has been indulging in malpractice/ manufacture of spurious LPG Cylinders/ unauthorised manufacturing of LPG Cylinders or on such other grounds that is considered by the Corporation to be in contravention to the contractual obligation. The Corporation’s right to so terminate the contract shall be without prejudice to any other right and remedy available against the successful tenderer including the right for recovery of damages if any from the successful tenderer, and in the event of the Corporation so terminating the contract, the Corporation shall not be liable to pay any



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compensation or damages in consequence of such termination to the successful tenderer.

(e) Cylinder units are supposed to have a good track record and clear credential in the past. If any unit is found indulging in any unauthorised activities at any time, even in the past, then the Corporation shall have the liberty to take appropriate action as deemed fit including rejection, termination immediately on receipt of such information.

21. ASSIGNMENT/SUB-CONTRACTING

The successful tenderer shall not sublet the contract or assign any part of the order to any person/firm/company without prior written consent from the Corporation. 22. ACQUIESCENCE OR WAIVER

Any acquiescence or waiver by the Corporation of any delay, breach or default committed by the successful tenderer shall neither deemed to be or considered as estoppel against the Corporation nor prevent the Corporation from exercising any of its rights under any of the provisions of this Agreement. 23. ARBITRATION

(a) Any dispute or difference of any nature whatsoever any claim, cross-

claim, counter-claim or set-off or regarding any right, liability, act, omission or account of any of the parties hereto arising out of or in relation to this agreement other than those in respect of which, the decision of any person is, by the purchase order or Agreement, expressed to be final and binding, shall be referred to the sole arbitration of the Director (Marketing) of the Corporation who may either himself act as the arbitrator or nominate some other Officer of the Corporation, irrespective of his relationship with the corporation, to act as the Arbitrator. The successful tenderer will not be entitled to raise any objection to any such arbitrator on the ground that the arbitrator is an officer of the Corporation.

(b) In the event of the Arbitrator to whom the matter is originally referred to being transferred, he shall be entitled to continue with the Arbitration proceedings notwithstanding his transfer, unless the Director (Marketing) at the time of such transfer or at any time thereafter, designate another person to act as Arbitrator in his place in accordance with the terms of this agreement.



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(c) In the event of the Arbitrator to whom the matter is originally referred, vacating his office or being unable to act for any reason, the Director (Marketing) at the time of vacation of office or inability or refusal to act, shall designate another person to act as arbitrator in accordance with the terms of this agreement.

(d) The Arbitrator newly appointed by the Director (Marketing) under clause (b) or under clause (c) above shall be entitled to proceed with the reference from the point at which it was left by his predecessor.

(e) It is an express term of this contract that no person other than the Director (Marketing) or a person nominated by such Director (Marketing) of the Corporation as aforesaid shall act as Arbitrator hereunder. If for any reason Director (Marketing) is unable or unwilling or refuses or fails to act as Arbitrator or nominate an Arbitrator then the Matter in dispute shall not be referred to Arbitration at all.

(f) The award of the Arbitrator so appointed shall be final, conclusive and

binding on all parties to the agreement subject to the provisions of the Arbitration and Conciliation Act , 1996 or any statutory modification or re-enactment thereof and the rules made thereunder for the time being in force shall apply to the Arbitration proceedings under this clause.

(g) The award shall be made in writing and published by the Arbitrator as

required under the law.

(h) The arbitrator shall have power to order and direct either of the parties to abide by, observe and perform all such directions as the arbitrator may think fit having regard to the matters in difference i.e. dispute before him. The arbitrator shall have all summary powers and may take such evidence oral and /or documentary as the arbitrator in his absolute discretion thinks fit and shall be entitled to exercise all powers under the Arbitration and Conciliation Act, 1996 or any subsequent amendment thereof, including admission of any affidavit as evidence concerning the matter in difference i.e. dispute before him.

(i) The party against whom the arbitration proceedings have been initiated , that is to say, the respondent in the proceeding, shall be entitled to prefer a cross – claim, counter-claim or set-off before the arbitrator in respect of any matter in issue arising out of or in relation to the agreement without seeking a formal reference for arbitration to the Director ( Marketing) for such counter-claim, cross-claim, or set-off and the arbitrator shall be entitled to consider and deal with the same as if



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the matters arising therefrom have been referred to him originally and deemed to form part of the reference made by the Director (Marketing).

(j) The arbitrator shall be at liberty to appoint, if necessary, any accountant or engineer or other technical person to assist him and to act on the opinion taken from such person.

(k) The arbitrator shall have power to make one or more awards whether

interim or otherwise in respect of the dispute and difference and in particular will be entitled to make separate awards in respect of claims or cross-claims of the parties. The arbitrator shall be entitled to direct anyone of the parties to pay the costs of the other party in such manner and to such extent as the Arbitrator may in his discretion determine and shall also be entitled to require one or both the parties to deposit funds in such proportion to meet the Arbitrator’s expenses whenever called upon to do so.

24. JURISDICTION

The parties hereby agree that the courts in the city of Mumbai alone shall have jurisdiction to entertain any application or other proceedings in respect of anything arising under this Agreement and any award or awards made by the sole arbitrator hereunder shall be filed in the concerned courts in the aforesaid city only. 25. VALIDITY OF THE CONTRACT

The total requirement shown in this tender enquiry is for the period of six months from the date of placement of LOI/purchase order. However, the contract may be extended further or repeated at the sole discretion of the Corporation on the same terms and conditions. In case of any dispute in the interpretation of the terms and conditions of the tender, the decision of the Corporation shall be final and binding.

TENDER NO: LPG: EQ: 09-10:08 ANNEXURE V

SCHEME FOR VENDOR PERFORMANCE EVALUATION

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The performance of vendor will be reviewed on monthly basis on the following four criteria: 1. Quality Complaints reported by BPCL Bottling plants or during Pre

Delivery Inspections at Manufacturer’s premises. 2. Suspensions during the contract period 3. Supply Performance during the contract period. 4. Shortcomings observed during Technical Audit Team (TAT) / PDI

Visits to manufacturer’s premises Penalty points shall be awarded for failures in each of the above criteria, over and above the financial penalties as listed in the annexure IV. A vendor-wise database shall be maintained by BPCL detailing the points accumulated for each failure. Deduction from the amount for Supply and performance guarantee shall be done if the successful tenderer accumulates more than 50 (Fifty) -penalty points (refer clause 2 of annexure IV). The supply contract with the successful tenderer shall stand automatically terminated once the threshold limit of 100 penalty point is reached or crossed. The scheme for awarding the penalty points is as given below: 1. Quality Complaints reported by BPCL Bottling Plant at the receipt of

new cylinders or during Pre-delivery Inspection at manufacturer’s premises.

a. Quality Inspection at Bottling Plants at the receipt of new cylinders

In case complaints regarding the quality of new cylinders supplied are reported by BPCL Bottling plants the vendor shall be advised for carrying out joint inspection at the plant in line with clause 17 of annexure IV. The penalty points shall be calculated on the basis of defects reported in the said joint inspection report and the formula given in the table below. The decision of the Plants regarding the acceptance/rejection of cylinders shall be considered as final.

The following scheme will be followed for awarding the penalty points for quality complaints reported as above:

Defective cylinders (as a % of number of cylinders in a single

lot supplied

For Cylinders rectified

For Cylinders rejected

< 2% 1 penalty point 3 penalty points



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2 - 10 % 2 penalty points 6 penalty points

10- 25 % 4 penalty points 12 penalty points

26- 50 % 6 penalty points 18 penalty points

> 50 % 8 penalty points 24 penalty points

A list of some of the commonly found defects in finished cylinders categorized as ‘Non- rectifiable’ and ‘rectifiable’ is as given below. (i) Non- Rectifiable :

S.No. Description of Defect

1 OMC cylinder

2 Bent/inclined stay plate

3 Bung eccentric/valves inclined on cylinders

4 Bung failing in L1 or L9 gauge

5 Cylinder fitted with OMC's footring

6 Cylinder with 2 similar stay plates

7 Damaged cylinder (dent, dig, cut, bulge, lamination, wrinkle etc.)

8 Variation in actual and marked tare weight by more or less than 100 grams

9 More than 1 cylinder with same serial no.

10 Cylinder failing in water capacity

(ii) Rectifiable:

S.No. Description of Defect

1 Air evacuation not complete

2 Valve bung joint leak

3 Cylinder with valve internals missing

4 Body leak in SC valves

5 Different serial number on stay plate & bung

6 Marking defect /double punching on stay plate

7 Poor quality painting

8 Safety cap not fitted on valve/ safety cap without nylon thread

9 Stenciling of tare weight/safety slogan missing/ illegible

10 VP ring with incomplete welding/unplugged hole

11 Valve over tightened

12 Valve under tightened

13 Valve failing in L1 L8 gauges

14 Bung marking not legible due to enamel paint

15 Improper painting

However the decision of BPCL Plants regarding the acceptance/rejection of cylinders shall be considered as final. The above lists are only indicative



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and highlight the common defects observed in the cylinders supplied at plants. BPCL’s decision regarding classifying/awarding penalty points for defects not appearing in the above lists shall be final and binding.

b. Pre delivery Inspection

Pre delivery inspection implies inspection of cylinders at the manufacturer’s premises which are kept in the factory after final inspection by the Quality supervisor. The vendor shall be given prior intimation about the date on which pre-delivery inspection shall be carried out at their premises and the number of cylinders to be kept ready for inspection. These cylinders shall be inspected on a random sampling basis (5% of offered lot subject to minimum of 15 cylinders). All the quality complaints thus noted shall be documented in a joint inspection report which shall be signed by the BPCL official as well as the vendor's representative. The penalty points shall be calculated on the basis of this report and the formula given in the table. 5 (Five) penalty points shall be awarded in case no or lesser number of cylinders are made available for pre-delivery inspection (i.e. after final inspection stage) than advised by BPCL. BPCL shall carry out one or more pre delivery inspections, as felt necessary.

2. Suspensions/ leak within warranty during the contract period

All instances wherein BPCL shall instruct or initiate suspension of production and despatches of LPG cylinders shall fall under this category. Penalty points for all such instances will be awarded as follows. ! First Instance : 15 ! Second Instance : 20 ! Third Instance : 25 ! Fourth Instance : 30 For example for the second instance of suspension of production and dispatch imposed, the cumulative points accrued will be 15 + 20 = 35, similarly, as soon a third suspension is imposed cumulative points accrued by the party will be 15 + 20 + 25 = 60.

a) All First Fill leak instances will attract penalty @ 02 points per cylinder for each cylinder found leaking during joint inspection between plant and party



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b) All subsequent fill Leak cylinders will attract penalty @ 01 points per cylinder

c) All cylinders found defective within warranty period will attract penalty @ 01 points per cylinder

3. Supply performance during the contract period

Penalty points shall also be awarded (over and above the LD as detailed in clause 9 of annexure IV) in case the successful tenderer fails to meet the supply commitment in line with the monthly call-offs/allocation/PO given by BPCL. 1 (one) penalty point shall be awarded per 1000 (thousand) cylinders on which LD is levied. These penalty points shall be awarded on prorata basis. 4. Shortcomings observed during Technical Audit Team (TAT) / PDI

visits to manufacturer’s premises All technical audits conducted by TAT team comprising of at least one member from BPCL shall fall under this category. Prior information to vendor about such visits may or may not be given. The scheme for awarding penalty points during TAT visits subject to a maximum of 15 points per visit. Repeat TAT / PDI will be conducted if found necessary. BPCL shall ensure that at least one technical audit of each supplier is carried out within the first three months of the contract period. In case more than one TAT visit take place at any vendor’s premises during the contract period then the penalty score under this head shall be the average of penalty points awarded in each visit. Scheme details:

1) Penalty points for each non- satisfactory remark observed during the TAT: 02(two) points

2) If any of the critical facilities viz SR / HT Furnace, Metallising, HST

etc. are found to be not operational during the TAT visit then 2 (two) penalty points per facility, will be levied.

3) In case any of the testing facility is found to be not working

satisfactorily than then 2 (two) penalty points will be levied.

4) Cylinders failed during testing at the time of TAT inspection @ 02 points per cylinder.



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5) Any quantity of cylinders blocked for Dispatches / re verification due to quality defects during the TAT / Pre Delivery Inspection, additional penalty points over and above the penalty points which shall accrue in accordance to 1 (b), will be levied as stipulated below:

a. 04 (Four) penalty points for every lot (up to and including

400 nos) or part thereof b. 01 (one) penalty point per cylinder for every cylinder

rejected.

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TENDER NO: LPG: EQ: 09-10:08 ANNEXURE VI

CREDENTIAL BID

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PARTICULARS OF TENDERER

1. Name of the Tenderer : 2. Address : Office : Factory : Tel No. (Office) : (Factory) : Fax. No. (Office) : (Factory) : Email ID

(compulsory) : 3. Weekly off of the unit :

MARKET STANDING & FINANCIAL CAPABILITY 4. Constitution of the firm :

a) Sole Proprietor

b) Partnership – Registered before Registrar of Firms

Unregistered

c) Pvt Ltd Co –

d) Public Ltd Co -

(Certified copy of Partnership Deed/Memorandum of Articles of Association to be enclosed)

5. Name & address of the Proprietor/ Partners/ Directors with % of share holding.

6. Year of Establishment /

Registration & Date. : (Certified copy of the registration certificate issued by Registrar of firms/ Companies to be enclosed)

7. Registration No. :


CREDENTIAL BID

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1. Under Companies Act : 2. Small Scale Ind. : 3. DGTD. : 4. Central Excise Dept. : 5. Under partnership Act :

(Please enclose a copy of all applicable registration certificates) 8. Capital Investment : 9. PAN No. :

(Photo copies of audited P & L A/c and Balance Sheet for the last three years to be enclosed).

10. a) Name of Bankers &

Full Address :

b) Whether the unit has gone for BIFR : Yes/ No (If Yes, provide details) 11. Bankers Certificate

indicating Credit worthiness (in value) of the firm to be enclosed in a separate sealed cover.

TECHNICAL EXPERTISE AND ORGANISATIONAL CAPABILITY 12. Year of commencement

of Cylinder production and Year Wise/ Company Wise Supply Details from start till the current year.

13. Achievable Production Capacity per annum and current commitments to OMCs :

14. Annual Turnover in the last 3 yrs. : 2006-07 2007-08 2008-09


CREDENTIAL BID

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Office Factory 15. No. of persons employed. :

Skilled : Unskilled :

16. (Please enclose a copy

of the organogram indicating the quality/ production managers and QC engineers/ supervisors with their qualifications.)

17. Sales Tax Registration No. : a) State Sales Tax : b) Central Sales Tax :

(Enclose copies of registration certificates)

c) Sales Tax Exemption Status : 18. Whether the LPG Cylinder is

completely manufactured at Tenderer’s factory. If ‘NO’, list of major bought out components and source for the same.

19. Details of valid BIS & CCOE

certificates for manufacture of LPG Cylinders as per IS 3196. (enclose photo copies). :

20. Whether any ED concession is

available to the unit. If yes, what is the applicable rate?


CREDENTIAL BID

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RATE OF SALES TAX/VAT

For the purpose of reimbursement of sales tax/VAT, we declare the rates applicable on us as under:

(i) Non-concessional rates:

S.No. Description Rate (%)

1 Outside state supplies

2 Within State supplies

(ii) Concessional rates:

S.No. Description Rate (%) Name of Concession Form

1 Outside state supplies

2 Within State supplies

I declare that I am fully informed on the Sales Tax/VAT rates as quoted above and I shall not charge/invoice nor shall be entitled for reimbursement of sales tax/VAT at any higher rate later (unless there is change in the Sales Tax/VAT legislation itself). This undertaking is subject to the condition that BPCL shall provide the Sales Tax concession form listed above. In case BPCL is not in a position to provide the form, then the non-concessional rates shall apply for calculations of delivered price for order allocation as well as for reimbursement of Sales tax to the successful tenderer(s).

TENDER NO: LPG: EQ: 09-10:08 ANNEXURE VII

Declaration forms

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A. DETAILS OF RELATIONSHIP WITH BPC DIRECTORS

Please furnish following details in the appropriate part based on your organisational structure: Organisational structure Part of the form applicable Sole Proprietor ..... Part -A Partnership Firm ..... Part -B Private/Public Ltd. Co. ..... Part -C


Declaration forms

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PART- A

(Applicable where Manufacturer is Sole Proprietor)

1. Name of Tenderer : 2. Address : Office : Residence : 3. Telephone : 4. State whether manufacturer is : Yes/No*

related to any of the director(s) of BPC

5. If `Yes' to 4, state the name of :

the Director and manufacturer’s relationship with him/her.

* Strike whichever is not applicable.

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Declaration forms

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PART -B

(Applicable where the manufacturer is a partnership firm)

1. Name of the Partnership firm : 2. Address : 3. Name of Partners : 4. State whether any of the partner : Yes/No*

is a Director to BPC 5. If `Yes' to 4 ,state the names(s) : Yes/No* of Directors. 6. State whether any of the partner : Yes/No*

is related to any of the Director(s) of BPC

7. If `Yes' to 6 state the name(s) : of Director(s) and the concerned Partner's relationship with him/her.

* Strike whichever is not applicable.

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Declaration forms

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PART -C

(Applicable where the Manufacturer is a Public / Private Ltd. Co.) 1. Name of the Company : 2. Address of : Regd. Office : Principal Office : 3. State whether the company is :

a Pvt. Ltd. Co. or Public Ltd Co. 4. Names of Directors of the : Company 5. State whether any of the : Yes/No*

Director of your Company is a Director of BPC .

6. If `Yes' to (5) state the name(s) : name(s) of the Director 7. State whether any of the Director : Yes/No*

of your Company is related to any of the Director's of BPC.

8. If `Yes' to (7) state the name(s) :

of Director and the concerned Director's (of the Vendor) relationship with him/her.

• Strike whichever is not applicable.

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Declaration forms

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B. LIST OF DIRECTORS OF BHARAT PETROLEUM CORP LTD.

Shri Ashok Sinha, Chairman & Managing Director Bharat Petroleum Corporation Ltd. Bharat Bhawan, 4 & 6 Currimbhoy Road, Ballard Estate, MUMBAI - 400 001. Shri S.K. Joshi, Director (Finance) Bharat Petroleum Corporation Ltd., Bharat Bhawan, 4 & 6, Currimbhoy Road, Ballard Estate, Mumbai - 400 001. Shri S. Mohan - Director ( Human Resources) Bharat Petroleum Corporation Ltd., Bharat Bhawan, 4 & 6 Currimbhoy Road, Ballard Estate, MUMBAI - 400 001. Shri S. Radhakrishnan, Director (Marketing) Bharat Petroleum Corporation Ltd., Bharat Bhawan, 4 & 6, Currimbhoy Road, Ballard Estate, MUMBAI - 400 001. Shri R.K. Singh, Director (Refineries) Bharat Petroleum Corporation Ltd., Bharat Bhawan, 4 & 6, Currimbhoy Road, Ballard Estate, MUMBAI - 400 001. Shri P.K. Sinha, Joint Secretary and Financial Advisor Ministry of Petroleum & Natural Gas Shri S K Barua Director Ms. Rama Bijapurkar Director


Declaration forms

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Prof. A.H. Kalro, AES Post Graduate Institute of Management, H L Commerce Collage Campus Ahmedabad 380009 Prof. N Venkiteswaran, Director Shri P H Kurian Secretary (Investment Promotion), Govt. of Kerala

!"

"

"

TENDER NO : LPG:EQ:09-10:08 ANNEXURE VIII

Declaration for conformity to Technical Specifications

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Declaration for Conformity to Technical Specifications and Facility Requirements

Detail Sr.

No. Subject

Parameters Declared Values

Soaking Time

Temperature

Cycle Time (Gate opening

Interval / no of cylinders may alt

be mentioned)

Furnace Type

Capacity of Furnace (no of rows X cylinder per row)

No of thermocouples

1 Heat Treatment & Furnace Parameters

Identification of

Furnace

Voltage

Current

Welding Speed

Type of welding

Flux type (for SMAW)

Gas Composition &

Flow Rate (for MIG /

MAG Welding)

2 C-Weld Parameters

Welding Wire Specs : Material & Size

Voltage

Current

Welding Speed

Type of welding

Flux type (for SMAW)

Gas Composition &

Flow Rate (for MIG / MAG Welding)

3 Bung Weld Parameters

Welding Wire Specs :

Material & Size

Activity No of personals qualified and

engaged (Enclose certificates)

Bung weld Yes/ No

C – weld Yes/ No

4 Welders Qualification

(Format to be submitted as per

circular LPG: EQ: 03 dated 06.02.2009) VP Ring and Stay Plate

assembly Yes/ No



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Stay plate & body

weld Yes/ No

Foot Ring weld Yes/ No

The Upper Half shall only be joggled and the Joggling Joint shall have overlap of minimum of three times the agreed finished thickness. 5 Joggling for C- welding

Yes/ No

6 CCOE Approved Drawing Drawing

Reference

7 Stamped calibrated measures (stamped and calibrated by W&M)

(write details)

8 List of Standard weights (stamped by

calibrated by W&M) (write details)

Sr.

No. Subject Available/ Not Available

1 LABROTARY set up for density determination of water used

in Water Capacity check as per IS 4730:1994.

2 Electronic weighing scale with digital display with maximum

least count of 10 gms for Water capacity determination.

a) Capacity = 60 kg for tare weight of cylinder

b) Capacity = 100 kg for water capacity of cylinder

3 An independent work station for closing in operation of halves

4 Blanking machine for Acceptance Test sample preparation

5 Bung eccentricity checking set up ensuring free suspension

of halves

6 Independent dial gauge set up for thread inspection as per

the IS 9121: 2005

a) For BUNG

b) For S C VALVE

7 Set up for checking the maximum eccentricity of the welded

V.P. Ring with respect to the bung (max eccen. 3mm)

8 Set up for Ground Clearance

9 Calibrated set up for Total Height with slide ruler

10 Valve tightening m/c with provision to set/ check tightening

torque



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11 Torque v/s pressure graph drawn out and displayed at the

valve tightening set up

12 Torque wrenches conforming to IS 7145: 1973 and IS 7268:

1974

13 Set up for verification of torque wrench as per clause 7 of IS

7145: 1973

14 Parameters and work instructions displayed at all the operational areas

15 Sufficient length at Unloading platform of HT Furnace to stack

10 cylinders/ row for 10 minutes before unloading

16

e-mail ID

(The email ID should be valid for the full tender period and the information shared/ advise issued/ others will be treated as official communication from either sides) (Name/ designation of personal handling the emails)

TENDER NO : LPG:EQ:09-10:08 ANNEXURE IX

E-TENDER PROCESS

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E-TENDER PROCESS FOR PRICE BID

Tender documents with detailed terms and conditions can be viewed and downloaded from our website http://bharatpetroleum.in/tender/tender.asp ; or obtained from the office of the Chief LPG Equipment Manager (CLEM), Bharat Petroleum Corporation Ltd., Sewree, Mumbai and may be used for submission of technical bids. The price bid has to be submitted online only before the due date of closing of tender through e-procurement system on https://bpcl.eproc.in.

Pre-requisite for participation in the tender: In order to bid for the e-tender No. LPG: EQ: 09-10:08, all the vendors are required to obtain a legally valid Digital Certificate of Class IIB and above as per Indian IT Act from the licensed Certifying Authorities operating under the Root Certifying Authority of India(RCIA), Controller of Certifying Authorities (CCA). In case you do not have digital signature certificate, you may contact our e-tendering service provider M/s. C1 India Pvt. Ltd., Mumbai (Contact no. 022-32444300/ 65281885/ 65281886). Vendors are advised to log on to the website (https://bpcl.eproc.in) and arrange to register themselves at the earliest. Vendors are required to quote their rates on-line before the due date of closing of the tender. Price Bid of only those vendors who qualify in the technical bid will be opened on-line as mentioned in the schedule.

Tender documents (technical bid) complete in all respects along with EMD and tender document fee wherever applicable, should reach the office of CLEM at the above address, and the same shall be opened at about 3.00 PM on 08.12.09. BPCL will not be responsible for non-receipt of Tender Documents due to postal delay/loss in transit etc..

How to submit On-line Price Bids / Offers electronically against E-

Procurement tenders?

Vendors / Bidders are advised to read the following instructions for participating in the electronic tenders directly through internet:

All the bidders have to register to the website https://bpcl.eproc.in

latest by 2.12.09 to enable to quote on-line. Late and delayed Bids / Offers after due date / time shall not be permitted in E-procurement system. No bid can be submitted after the last date and time of submission has elapsed. (However if bidder intends to change the bid already entered may change / revise the same on or before the last date and time of submission deadline). The

TENDER NO : LPG:EQ:09-10:08 ANNEXURE IX

E-TENDER PROCESS

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system time (IST) that will be displayed on e-Procurement web page shall be the time and no other time shall be taken into cognizance.

Bidders are advised in their own interest to ensure that Price bids are uploaded in e-Procurement system well before the closing date and time of bid.

No bid can be modified after the dead line for submission of bids.

No Manual Bids / Offers along with electronic Bids / Offers shall be permitted. No responsibility will be taken by BPCL for any delay due to connectivity and non-availability of website.

In case of any clarification, the vendor may contact M/s.C1 India on the contact nos. as mentioned above.

The tenderer shall have to quote the following figures during the on-line Price-bidding process:

a. Quantity Offered: This shall be the maximum quantity (in nos of

14.2-kg empty LPG cylinders) the tenderer shall be able to manufacture & supply during the contract period to BPCL, of the specification and on the terms mentioned in the tender document. The tenderer shall have to offer minimum quantity of 100000 nos. cylinders and in multiples of 10000 thereafter. However, minimum quantity to be offered by a) new vendors is 25000 and Dormant vendors is 50000 cyls.

b. Rate per cylinder – It is to be quoted in Rs./cylinder and shall

include all applicable duties, taxes (except Sales Tax/VAT), transit insurance (if tenderer desires so), loading/unloading charges and any other incidental charges and such other duties and levies as may be imposed for sale and delivery of the said cylinders. Only Sales tax/VAT as applicable and declared in the credential bid, transportation charges at the quoted rates and octroi as applicable shall be payable over and above this amount. This rate is based on the weighted average SAIL steel prices ex-bokaro as on 01/11/09. The contract price shall be as per clause 4 of annexure IV.

c. Rate of Freight: This shall consist of Rs. per cylinder for that

state.

TENDER NO : LPG:EQ:09-10:08 ANNEXURE X

INTEGRITY PACT

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INTEGRITY PACT

Page 1 of 6 Between

Bharat Petroleum Corporation Limited (BPCL) hereinafter referred to as "The Principal", And ………………………..hereinafter referred to as "The Bidder/Contractor/Supplier" Preamble The Principal intends to award, under laid down organization 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, Contractor/s and Supplier/s. In order to achieve these goals, the Principal cooperates 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 and the execution of the contract 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: (a) No employee of the Principal, personally or through family

members, will in connection with the tender, or the execution of the contract, demand, take a promise for or accept, for himself/herself or third person, any material or immaterial benefit which he/she is not legally entitled to.

(b) The Principal will, during the tender process, treat all Bidders with equity and reason. The Principal will, in particular, before and during the tender process, provide to all Bidders the same information and will not provide to any Bidder confidential/


INTEGRITY PACT

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additional information through which the Bidder could obtain an advantage in relation to the tender process or the contract execution. (c) 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 relevant 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 of the Bidder / Contractor/Supplier

(1) The Bidder / Contractor/Supplier commits itself to take all measures necessary to prevent corruption. He commits himself to observe the following principles during his participation in the tender process and during the contract execution.

a) The Bidder / Contractor/Supplier will not, directly or through any other

person or firm, offer, promise or give to any of the Principal's employees involved in the tender process or the execution of the contract or to any third person, any material or immaterial benefit which he/she is not legally entitled to, in order to obtain in exchange, any advantage of any kind whatsoever during the tender process or during the execution of the contract.

b) The Bidder / Contractor/Supplier will not enter with other Bidders to any

undisclosed agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or any other actions to restrict competitiveness or to introduce cartelisation in the bidding process.

c) The Bidder / Contractor/Supplier will not commit any offence under the

relevant Anti-Corruption Laws of India; further the Bidder / Contractor/Supplier will not use improperly, for purposes of competition or personal gain, or pass on to others, 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.

d) The Bidder / Contractor/Supplier will, when presenting his bid, disclose any and all payments he has made, is committed to, or intends to make


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

(2) The Bidder / Contractor/Supplier will not instigate third persons 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 contract award, has committed a transgression through a violation of Section 2 or in any other form such as to put his reliability or credibility as Bidder into question, the Principal is entitled to disqualify the Bidder from the tender process or to terminate the contract, if already signed, for such reason. (1) If the Bidder/Contractor/Supplier has committed a transgression through a violation of Section 2 such as to put his reliability or credibility into

question, the Principal is also entitled to exclude the Bidder/ Contractor/Supplier from future contract award processes. The imposition and duration of the exclusion will be determined by the severity of the transgression. The severity will be determined by the circumstances of the case, in particular the number of transgressions, the position of the transgressors within the company hierarchy of the Bidder and the amount of the damage. The exclusion will be imposed for a minimum of 6 months and maximum of 3 years.

(2) A transgression is considered to have occurred if the Principal after due

consideration of the available evidences, concludes that no reasonable doubt is possible

(3) The Bidder accepts and undertakes to respect and uphold the Principal's

absolute right 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) If the Bidder / Contractor/Supplier can prove that he has restored /

recouped the damage caused by him and has installed a suitable corruption prevention system, the Principal may revoke the exclusion prematurely.


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Section 4 - Compensation for Damages

a) No employee of the Principal, personally or through family members, will in connection with the tender, or the execution of the contract, demand, take a promise for or accept, for himself/herself or third person, any material or immaterial benefit which he/she is not legally entitled to. b) The Principal will, during the tender process, treat all Bidders with

equity and reason. The Principal will, in particular, before and during the tender process, provide to all Bidders the same information and will not provide to any Bidder confidential / additional information through which the Bidder could obtain an advantage in relation to the tender process or the contract execution.

(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/Supplier liquidated damages equivalent to 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/Supplier 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/Supplier shall compensate the Principal only to the extent of the damage in the amount proved.

Section 5 - Previous Transgression

(1) The Bidder declares that no previous transgression occurred in the last 3 years with any other Company in any country conforming to the TI approach or with any other Public Sector Enterprise in India that could justify his exclusion from the tender process.

(2) If the Bidder makes incorrect statement on this subject, he can be

disqualified from the tender process or the contract, if already awarded, can be terminated for such reason.

Section 6 - Equal treatment of all Bidders / Contractors /Suppliers/ Subcontractors

(1) The Bidder/Contractor/Supplier undertakes to demand from all subcontractors a commitment in conformity with this Integrity Pact, and to


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submit it to the Principal before contract signing.

(2) The Principal will enter into agreements with identical conditions as this one with all Bidders, Contractors/Suppliers and Subcontractors.

(3) The Principal will disqualify from the tender process all Bidders who do not sign this Pact or violate its provisions.

Section 7 – Punitive Action against violating Bidders / Contractors / Suppliers/Subcontractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Supplier or Subcontractor, or of an employee or a representative or an associate of a Bidder, Contractor, Supplier or Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the Vigilance Office. Section 8 - Independent External Monitors

(1) The Principal has appointed competent and credible Independent External Monitors 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 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 Bidder/Contractor/Supplier accepts that the Monitor has the right to

access without restriction to all Project documentation of the Principal including that provided by the Bidder/Contractor/Supplier. The Bidder/Contractor/Supplier will also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and unconditional access to this project documentation. The same is applicable to Subcontractors. The Monitor is under contractual obligation to treat the information and documents of the Bidder/Contractor/Supplier/ Subcontractor with confidentially.

(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 Bidder/Contractor/Supplier. 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


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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 recommendation. 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/Supplier 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 correcting problematic situations.

(7) 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.

(8) The word 'Monitor' would include both singular and plural. Section 9 - Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Contractor/ Supplier 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 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 Chairperson of the Principal.

Section 10 - Other provisions

(1) This agreement is subject to Indian Law. Place of performance and

jurisdiction is the Registered Office of the Principal, i.e. Mumbai. The Arbitration clause provided in the 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 need to be made in writing. Side agreements have not been made.

(3) If the Bidder/Contractor/Supplier is a partnership or a consortium, this agreement must be signed by all partners or consortium members.


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(4) Should one or several provisions of this agreement turn out to be invalid, the remainder of this agreement remains valid. In this case, the parties will strive to come to an agreement to their original intentions.

----------------------- -------------------------------- For the Principal For the Bidder/Contractor/ Supplier Place ……………… Witness 1 : ……………… (Signature/Name/Address) Date ………………. Witness 2 : ……………… (Signature/Name/Address)