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, Rourkela Steel Plant, Rourkela 769011, Tender No : RSP/CP/Forged Rolls/2014-17/02

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Section I Overview of RFQ and Instruction to Bidders1.1 SAIL introduction

Steel Authority of India Limited (SAIL) is the largest Indian producer of steel. It produces a variety of steel and ironproducts including pig iron, flat and long products and special steels at its various plants spread over India.

1.2 Key features of rolls purchase process Co-ordinated purchase by RSP for SAIL PLANT UNITS. Requirement of THREE years with a provision to increase or decrease the quantity by 25 %. Definition of L1 (lowest price bid) item-wise on landed cost net of set off basis. Minimum performance guarantee and bonus thresholds (wherever applicable) specified. Tenders are invited on Price Variation Formula basis as specified in Appendix 3.

1.3 Implications for current and future suppliersSAILs aim is to develop a long term, win -win relationship with key suppliers. For suppliers the opportunity is to Increase capacity and capacity utilisation Achieve better economies of scale in raw material buying Improve performance of rolls to avail bonus.

1.4 Requirement for 2014-17 (April1 4 to March1 7)Detailed, item-wise requirement is indicated in Appendix 1 in excel file with multiple worksheets showing separately the

quantity, mill, guarantee & bonus threshold, drawing reference, and specifications.1.5 How to fill up the bid

Tender is to be submitted in THREE parts EMD BID, Techno-commercial bid and price bid as under :

1.5.1 EMD & Techno-commercial Bid (comprising technical & commercial bids)

Techno-Commercial Bid - As part of the technical bid, suppliers are required to fill up Forms 1 & 2 (included inAppendix 2) to indicate technical details of rolls to be supplied. As part of the commercial bid, suppliers are requiredto fill up Forms 3 TO 8 (included in Appendix 2) to indicate that they accept the commercial terms specified in thisRFQ document and specify applicable duties, taxes and delivery.

EMD BID Please refer Clause No. 1.8.1 for submission of EMD & EMD BID

Along with above the Integrity Pact enclosed with the RFQ is to be signed and stamped(by authorized person ) withand sent back. All pages of Integrity pact should be signed. This shall form a part of contract.The IndependentExternal Monitor of SAIL are Ms Chitra Chopra, Mr. S.K.Tuteja and Shri Janki Ballabh. Integrity Pact secretariat isfunctioning in 16 th Floor, Scope Minar, Laxmi Nagar District Centre, Delhi-110092.

1.5.2 Price Bid - Item wise online price bids shall be taken on Mjunction platform instead of physical bids ( ReferAppendix-5 for Details)

For mode of price discovery ,SAIL reserves the right to finalize the order either on the basis of online sealed Price Bidssubmitted along with the Techno-Commercial bids or by conducting Reverse Auction. In case the Revere Auction isnot conducted , the techno-commercially acceptable bidders shall be asked to submit sealed decrement over online

quoted sealed price and online sealed price bids and sealed decrement shall be opened together for evaluationpurpose.

SAIL reserves the right to restrict participation in the online price bidding (Reverse Auction) process depending onpartys status (Ranking) in the online sealed bid taken along with Techno-commercial bid.

For Indian suppliers, base price is defined as ex-works price + packing & forwarding costs. Insurance and freightamounts are to be shown separately.All foreign vendors are required to quote prices on FOB as well as CFR basis. Ex-works prices are not acceptable.

1.5.3 Submission of Offers : The offers are to be submitted in three-bid system . EMD BID & Techno-Commercial bid are to be submitted in hard

copy . Price bid is to be submitted on line as per appendix 5 . EMD BID and TC bid should be put in separate sealedenvelops and both the Envelopes to be put in another envelop for which should be sealed properly and the name ofthe supplier should be mentioned on the top of envelope.

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The EMD BID ( in duplicate) put in a sealed envelop & techno-commercial bid along with signed Integrity Pact ( induplicate) put in a separate sealed envelop should be placed in the envelope with the superscription - EMD bid andTechno Commercial Bid for supply of Forged rolls against SAIL tender no ..

All forms pertaining to the techno-commercial bid (i.e. forms 1 to 8 as per Appendix 2) are to be submitted in hardcopy only (2 copies each for every form). The techno-commercial bid should not contain prices or any indication ofprices. If prices are indicated in techno-commercial bid the offer will be rejected.

Tenders are invited on Price Variation Formula basis as specified in Appendix 3. All tenderers should clearly specifyeither the range or the minimum percentage of the elements for the roll to be supplied by them. Such range orminimum percentage must satisfy the criteria as given in the specification for the relevant item. Where PVC formulaspecifies percentage of alloying elements such percentage shall be considered for calculating variation. Where PVCformula does not specify fixed percentage the minimum percentage as offered by the firm and acceptable to SAILshall be used in calculating variation as per PVC formula given in this tender.

For international suppliers who submit offer through an authorized agent, letter of authorization for this offer is to besubmitted separately at the time of submission of bid. The authorization should specifically mention the tendernumber and a copy should be sent directly to SAIL at address below or by fax or by email.

1.5.5 Any unsolicited modification to the original offer, after due date of opening, shall be treated as unsolicited andrejected.

1.6 Tender SubmissionThe following shall be the recognized methods for receipt of tender:

Tenders received by post(EMD BID & Techno-commercial and Integrity Pact) Tenders received by courier service(EMD BID & Techno-commercial and Integrity Pact) Tenders received through Tender Box( EMD BID & Techno-commercial and Integrity Pact)And

Online Price Bid through M Junction Platform before due date of Tender Submission1.7 Summary of evaluation process

The bid evaluation process will comprise of two steps - Step1: Techno-commercial evaluation Step 2: Price bid evaluation

1.7.1 Step 1: Techno-commercial evaluation

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

1.7.1.1- Technical evaluationThe technical evaluation process will comprise the following steps - The sourcing team will study specifications submitted by each supplier and check for any deviation from tender

specifications (as specified in Section II). In case of deviation, the team may ask for clarifications on the same. In casethe clarifications are not acceptable to the team, the bid shall not be accepted. Wherever chemical compositions arenot specified, the firms shall offer the chemical composition for acceptance and same shall be used for Price Variationformula. Firm shall supply rolls as per the chemical composition accepted.

1.7.1.2- Commercial EvaluationAs part of the commercial evaluation process, SAIL sourcing team will check whether suppliers have agreed to thecommercial terms specified in the RFQ.In case of non-agreement, clarifications may be sought from the supplier. If the clarification is not found acceptable, theoffer will be liable for rejection.

1.7.2 Step 2: Evaluation of price bids Price bid evaluation process comprises two elements L1 definition & order splitting wherever required .

1.7.2.1 - L 1 Definition L1 evaluation will be done item-wise on landed cost net of CenVAT basis. Where more than one item is specified in

the RFQ document as forming a set, then L1 evaluation for such items will be done on set basis considering thespecified quantity of each item that comprises a set and order shall also be placed on set basis for such items.

No change in prices in lieu of change in Tax & Duty Structure /VAT SET OFF/ ET , shall be allowed AFTER SUBMISSIONOF OFFER

For individual item, L1 will be computed as follows

- For Indian suppliers, base price is defined as ex works price (including packing & forwarding costs). In additioninsurance and freight amounts shall be shown separately. Packing, forwarding, freight and insurance is to beborne by suppliers.

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1.9 Validity of offer :Each supplier shall keep the offer firm and valid for acceptance by SAIL for a period of minimum 90days from opening of TC bids for opening the price bid/conducting RA and 60 days from opening of pricebid/conducting the RA for Placement of LOA .

VALIDITY OF CONTRACT : 42 MONTHS FROM PLACEMENT OF LETTER OF ACCEPTENCE.1.10 Key contact PERSON :

Name & Designation AddressR. K. PARMARDeputy General Manager(MM) PURCHASE

MATERIAL MANAGEMENT (PURCHASE),6TH FLOOR , ADMINISTRATIVE BUILDING,ROURKELA STEEL PLANT,ROURKELA-769011ODISHA, INDIAPhone : +91-661-2445564 / 2446379Fax : +91-661-2510028 , MOB : +91-8895501048Email : [email protected]

1.11 Instructions to Bidders / Tenderers :a) The bidder should sign each and every page of the offer submitted by them. Signed Intergrity Pact shall form a

part of offer. b) SAIL reserves the right to accept any tender in whole or in part, or reject any or all tenders without assigning any

reason, whatsoever. Bids not conforming to specification and/or terms and conditions of RFQ are liable for rejection.c) The purchase preference to Indian Public Sector Undertakings / Government Organizations shall be based on the

extant guidelines issued by Government of India/SAIL.d) The tenderer must declare whether the proprietor or any partner of the firm, or director of their company, has any

relation with any employee working is SAIL, if so give the name of the employee and the relationship and alsowhether any of them has a relationship within the meaning of section 6 of Companies Act, 1956 with any directors ofSAIL and, if so, give details.

e) The bidder is expected to examine all instructions, forms, terms and specifications given in the RFQ. Failure to

furnish al l information or submission of a bid not substantially responsive to the RFQ will be at the bidders risk andmay result in rejection of the bid.f) SAIL reserves the right to ask for further proof regarding the status/position of supply as well as establishment of an

acceptable source, if required, during the finalization of the tender. SAIL further reserves the right to assess previousdelivery commitment / performance for consideration of offer before opening of price bid.

g) Cost of Bidding The bidders shall bear all costs associated with the preparation and submission of bids, and SAILwill, in no case, be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process .

h) Language of bid and units The bid prepared by the bidder and all correspondences and supporting documents aswell as the performance certificates relating to the bid exchanged by the bidder and the purchaser shall be writtenonly in English language and in M.K.S. units. Any document submitted to the purchaser regarding the credentials ofthe bidder in other than English language should be accompanied by an English translation of its pertinent passages,which should be self-certified by the bidder. In such a case, for the purpose of interpretation of the bid, the Englishtranslation and the units given in M.K.S. unit shall govern.

i) The vendors are requested to visit to see the operation parameters etc of the mill,if so required by them,prior tosubmission of techno-commercial offers. j) SAILs standard terms and conditions governing supply contracts - SAIL P-1 will apply for any orders placed

against this tender. SAIL P-1 can be downloaded from our Website https:\\sailtenders.co.in.
mailto:[email protected]:[email protected]:[email protected]

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attributed to any quality problem of the roll, the performance will be analysed as per the roll performance analysismethodology/procedure for roll performance assessment formulated for different mills. Intimation shall be givento the manufacturer, after roll performance analysis, against such rolls which are found to have underperformed.The right to final decision on compensation will lie with respective plant unit.

As a part of the commercial bid, all International Suppliers will have to give an undertaking that recoveries againstfailures of rolls shall be reimbursed through demand drafts within 30 days of settlement of claim. Similarly, IndianSuppliers will have to give an undertaking to allow recovery of price of replacement roll/ pro-rata payment fromrunning bills. In case there is no pending/running bill of Indian suppliers, the claim will be settled by way of demanddrafts within 30 days of communication of decision to suppliers.

In case of roll breakage, replacement/pro-rata compensation will be charged after metallurgical testing attributesfailure to material / manufacturing defect as stated above. For all other cases where the guaranteed life has notbeen achieved, free replacement/compensation as mentioned above, will be applicable without any metallurgicalinvestigation

In the event the claim is not accepted by the supplier, at the first stage, then discussion shall be held with thesupplier as per facts given in the roll performance analysis and as per R&C Lab reports (where applicable). In caseof dispute where sampling is to be done again the supplier will be given an opportunity to depute theirrepresentative for witnessing joint sampling against which a fresh analysis will be carried out in the R&C Lab of therespective SAIL steel plant. The deputation of the sellers representative has to be effected within 30 days of

intimation given by respective Steel Plant and for resolving the claim through discussion based on R&C Lab report.In the event of dispute not being resolved as above then a mutually agreed third party agency shall be engaged forassessing the liability of claim. The cost of engaging third party shall be borne by the party whosoever at fault.

2.2.5 The decision of individual steel plants as to the performance of rolls as per roll performance evaluation shall befinal and binding and must be accepted unconditionally by suppliers.

2.3 Bonus2.3.1 Bonus ( wherever applicable) will be paid on individual rolls, on reaching scrap diameter, if the actual tonnage rolled

as per Mill record exceeds the threshold specified in data-sheets 1a, 1b1,1b22.3.2 Out of the incremental actual tonnage rolled achieved, 50% will be paid to suppliers as bonus as specified in 2.3.3.

2.3.3 Bonus value will be computed as follows -

The ratio of the Ex- works/FOB price and the bonus threshold level will be computed (e.g. let the ratio be a ) For each roll, the actual incremental tonnage rolled beyond the bonus threshold will be computed (e.g. let the

incremental tonnage be b tons) 50% of the incremental performance will be paid as bonus [e.g. in this case bonus = (0.5 * a * b)]

EXAMPLE : Minimum Tonnage Guarantee say 80,000 T Threshold For Bonus say 1,00,000 T FOB Price say USD 60,000 Total Tonnage Achieved say 1,80,000 T a = 60000/100000 = 0.6 USD/Ton b= 80000 T Bonus = 0.5 x 80000x0.6 = 24000 USD

Note : Taxes and duties (statutory levies only) shall be reimbursed for bonus amount, as above, against submissionof documentary evidence

Performance Evaluation of rolls shall be done by each plant minimum once in a year.2.4 Delivery 2.4.1 Delivery schedules shall be provided to each supplier at the time of backup order placement by the respective SAIL

plant. Tentative annual quantities have been mentioned.

2.4.2 Rolls will be delivered during the year 2014-17 as per requirements of Plants. However the delivery can berescheduled considering the requirements of the plants within the validity of contract by giving 9 monthsnotice. However such instances shall be rare.

SAIL Plant Units shall reserve the right to increase or decrease the ordered quantity by 25 % as per below :

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For reduction in quantity , there will be minimum 9 months notice w.r.t. Schedule Delivery period ofquantity being reduced.

Increase in qty. / decrease in qty maximum UPTO 25% ROUNDED OFF TO NEXT WHOLE Number.For example if ordered quantity is 5 nos. , 25% = 1.25, rounded off to 2. Amendment to Increase in quantity will not be issued after 31.3.2016 for BSL Rolls and 31.03.2017 for

BSP Rolls. . Suitable extension of delivery period for increased quantity in line with the delivery periodoffered in quotation shall be given.

2.4.3 If for any reason, suppliers cannot deliver rolls as per schedule, advance intimation should be sent to plants citingreasons for delay

Delivery for the purpose of PVC shall be taken as the date of B/L as evidence by the Bill of Lading.In case of FOB deliveries, if vessel is not made available in time, the date of readiness of cargo atport as indicated in Notice of Readiness sent to freight forwarder and purchaser shall be

considered as date of delivery for PVC. In case of Indigenous supplies delivery date shall be takenas date of L/R

Delivery for the purpose of LD ( for both FOB AND CFR ORDERS ) the date of B/L shall be takenas date of delivery. In case of failure to provide ship in time by the buyer( FOB ORDERS), then thedate of readiness of cargo at port as indicated in Notice of Readiness sent to freight forwarder andpurchaser shall be considered as date of delivery

In case of Indian Suppliers the date receipt of rolls at stores of respective SAIL plant/unit shall beconsidered as date of delivery for the purpose of LD.

Liquidated Damages (LD) : Timely delivery is the essence of contract. In the event of supplies not being effected within

the contractual delivery schedule given in the order, LD @ 1%, not by way of penalty, of the value of material, permonth of delay or part thereof, subject to a maximum of 5%, is recoverable from the supplier, without prejudice to theright of SAIL to procure the balance material at the risk and cost of supplier. LD shall be applicable on FOBvalue . ( For Indian suppliers, on Ex-works value)

LD shall be applicable as per FOB dispatch schedule even if PO is amended to CFR basis.

2.5 Inspection: Pre despatch inspection not required. Rolls are to be dispatched along with TC/GC. Additionally,ultrasonic test reports are to be submitted for steel rolls only. However, the purchaser may inspect the rolls onreceipt or at the supplier site with prior intimation.

2.6 SAIL reserves the right to inspect the materials at destination. Materials not conforming to the specifications shall notbe used and shall lie rejected at the risk and cost of seller and the seller shall be informed of such rejection for actionas per standard practice of respective SAIL, plants; including replacement of rejected rolls, The supplier shall lift the

rejected material within sixty days of intimation, failing which SAIL may dispose off the rejected material at itsdiscretion and will stand absolved of all responsibilities towards the supplier for rejected material.

2.7 Rescinding of Contract : SAIL reserves the right to suspend/terminate/short close the order if any suppliersperformance is found unsatisfactory. The supplier will not be entitled to and claim any loss or damage because of andowing to such suspension / cancellation / termination / short closure and SAIL or its respective plants will not be liablefor the same. The quantity short closed can be diverted at same price, terms and conditions to other proven supplierof same item in same cycle on which order has been placed.

2.8 Risk Purchase: In case a supplier fails to supply as per allocation or delivery schedule, the steel plants reserve the right tocancel the contract, or part thereof, and if so desired to purchase the goods from alternate source at the risk and cost ofdefaulting supplier. The price differential in case of higher cost to SAIL, if any, shall have to be borne by the defaultingsupplier. Moreover the defaulting supplier shall have no claim over the quantity, which they failed to supply.

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2.16 Performa in case of Placement of Order on Marketing Associate

Proforma for authority from roll manufacturer

REF.No...................dated....../ .../To,

M/s Steel Authority of India Limited Rourkela Steel Plant, ROURKELA-769011Odisha, INDIA

Dear Sir ,

SUB: Your RFQ for requirement o f FORGED Rolls vide RFQ ref . No...............................................................................................................

We (Name & Address of the Roll Manufacturer) ..an F orged/Forged Roll M anufacturer dohereby authorize our marketing Associate M/s ..(Name and address of Supplier) to makean off er in response to this I nvitation to bid.

No company/ firm or individual other than M/s ( Name and address of Supplier ) is authorized torepresent us in regard to this business against this specific bid.

We undertake to supply the rolls if order is placed on M/s . We confirm that payment is to be made to M/s ... We hereby extend our ful l guaran tee and warr anty for the goods off ered for supply again st thi s RF Q by the above

fi rm and also confir m that other terms & conditions agreed by our M arketing associate against this RFQ wil l beacceptable to us.Thi s authori zation wil l r emain valid till completion of contract. Any claim arising out of terms of th is contr act willbe settled by M/s. and shall be owned by us.

Yours F aithfu ll y,

(NAME)(Designation)

for& on behalf of M/s. (Name & Address of the Roll M anuf acturer)

Note: Thi s Letter of A uthor ity should be on th e Letter - H ead of the Roll manuf acturer and should be signed by theperson competent and havin g the power of attor ney to bin d the producer .

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3.0 Basic Commercial Terms (for Indian suppliers only)3.1 Payment Terms for Indian suppliers

Payment of 95 % of order value along with 100 % of ( Taxes, duties , freight & Insurance) will bemade by the respective plants against GRN/GARN/SRV, within 30 days from GRN/GARN/SRV.Balance 5 % of order value shall be released after completion of Guarantee terms successfully..Firm shall submit the bills within 7 days of GARN (Acceptance of Material) The respective

steel plants will indicate the paying authority.3.2 Excise duty : Excise duty shall be payable extra at the rate ruling on the date of dispatch. The supplier has to

provide the duplicate for the transporter copy of invoice along with the material to enable the concerned steel plant toavail CenVAT benefit. The necessary formalities and rules of excise must be followed for preparing CenVAT invoiceto avoid any discrepancy at the time of receipt of material. In the event of CenVAT not being availed due to faulty invoice, the amount so claimed shall be recoverable from thesuppliers pending or forthcoming bills. In case bills are not supported by excise paid documents, the claim for exciseduty shall be withheld and the same shall be released on presentation of the requisite documents.

3.3 Sales Tax / VAT : Sales tax/VAT as applicable on the date of scheduled despatch will be payable extra but at concessionalrate against issuance of appropriate sales tax declaration form by the respective steel plants If sales tax/VAT is not applicable, the same should be clearly indicated by the supplier. In case of penalties, the C Formwill be issued by the individual steel plants for the original invoice value.

3.4 PackingSuppliers shall include and provide for security protecting and packing the material so as to protect the contents fromdamage during transit from point of manufacture until after arrival at plant site. All packing shall allow for easy removalat plant site.

3.5 DispatchBy road, freight paid by supplier.

3.6 InsuranceTo be arranged by supplier and reimbursed by respective plant units.

3.7 Delivery TermSuppliers have to deliver rolls at no extra cost at individual SAIL plant store site. For other terms specific to delivery,please refer to clause 2.4.

3.8 Claims: In case any package is found damaged externally at the time of receipt at respective plant sites, such package

would be opened for detailed checking by a SAIL representative and the report would be sent to the supplier whoshould arrange for immediate replacement in case any item is found missing or damaged.If damage / defect stated above are found due to improper and inadequate packing before shipment, the cost ofshipment would be borne by the supplierIn case materials are found short supplied or in damaged condition for reasons attributable to the supplier, claim in thisregard will be intimated to the supplier within 90 days from the date of receipt of materials at the place of destination.The supplier shall arrange for replacement free of cost at SAIL plant stores within ninety days of intimationThe claim will be corroborated by the investigation report made by the authorised representative of the purchaser withthe participation of the suppliers representative who may like to be present. The purchaser will give sufficient advancenotice to the supplier for deputing his representative.

3.9 Arbitration - REFER Clause 2.13

3.10 Transit DamageNo transit damage will be paid by SAIL since the suppliers have the full responsibility of delivering the complete sets toplants/sites.

3.11 Marking3.11.1 Roll markings

All marking to be as per drawings provided with this RFQ. Manufacturers name is to be marked in short on every roll. In case the supplier is covering the right parts of roll neck with some protective paint, the solvent to be used to wipe

out the same should be intimated to respective plants before commencement of supplies. In case the supplier is following any colour code for identification of roll material, it should be intimated to respective

plants before commencement of supplies. Alternatively, the supplier should be prepared to flash the ends with anycolour in case the plants have a preferred colour coding.

Marking must be indelible and indicate consignees name and address, purchase order number and date, LC details,gross and net weight, dimensions of each package, name of supplier and import license details.

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Engraving: Drive end face should be engraved with D. Catalogue number should be engraved on idle end surface.Manufacturers no. should be engraved on the drive end surface . Size of the letter or digit should be suitablydetermined by the supplier.

3.11.2 Marking on packagesAll packages should be marked and labelled clearly from outside with the following information: Item : Rolls Purchase order number and date Catalogue number/ Item code number Gross weight (kilograms): Net weight (kilograms): Suppliers name: Place of delivery: Consignee: Roll description Mill A red vertical line showing the centre of gravity of the package

4.0 Basic Commercial Terms (for International suppliers only)4.1 Payment Terms4.1.1 95% of the value of materials (FOB/CFR) shall be paid against dispatch documents (B/L and other negotiable documents)

through LC. All bank charges within India will be on the buyers account. Bank charges of the suppliers Bank will be tothe suppliers account. Confirmation charges, if any, shall be to suppliers account. Firms shall raise invoice for 100 %value and amount claimed shall be 95 % of value.Payment of rest 5 % value of material (FOB/CFR) shall be released after completion of Guarantee terms successfully.

In case of payment through LC, LC shall be opened as per base price of the contract. Any extra amount payable for PVCshall be made through TT. However the invoice shall be prepared including any extra amount ( instructing that extraamount shall be paid separately through TT , claim amount being the same as LC value.) In case the rate of roll afterapplication of PVC is lower than base price the supplier shall raise bill for such reduced value only.

4.1.2 Agency commission due to Indian agent, if any, shall be payable in equivalent Indian Rupees at the exchange rate as perthe telegraphic transfer (market) rate of buying, ruling on date of award of contract. This rate will not be subject to anyfurther exchange rate variation. LC will be opened for the price minus Indian agency commission if any. Agencycommission will be payable to the Indian agent after receipt of the cargo in plant stores and issue of GRN. This paymentis subject to fulfillment of condition as per para 4.9.

4.2 Invoice preparationThe invoice will be prepared in accordance with instructions spelt out in the backup purchase order issued by respective

plant/unit of SAIL.4.3 Negotiable documents

Negotiable documents must comprise 3/3 original BL, 2 signed invoice, packing list, certificate of country of origin,works test certificate, copy of intimation to insurance and certificate of document distribution in accordance with

purchase order terms4.4 Bill of Lading

The Bill of lading preparation should take into account: Order number and date LC number and date Gross weight and net weight Import license details At present rolls are covered under OGL.

4.5 Despatch Procedure4.5.1 Shipping arrangements

Containerized Rolls should be dispatched in open top type containers. For CFR cases, shipper shall ensurefree detention period of containers as 14 days.The Supplier shall make Shipping arrangements through the Shipping Corporation of India and Department of Shipping,Ministry of Road Transport, Shipping &Highways, Government of India and through the respective forwardingagents/nominees as given by the respective steel plant in the backup order.Adequate notice, of not less than 6 weeks, about readiness of the material for shipment must be given to them for

finalising the shipping arrangements

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4.5.2 The supplier shall arrange shipment by India flag vessels and/or through any 22 shipping companies who are members ofIPBC

4.5.3 In case of any delay in shipping through the respective forwarding agents/nominees as mentioned above or in case ofCFR Contract, the supplier shall make alternative shipping arrangement through his forwarding agent after intimation tothe purchaser.

4.5.4 The bills of lading should be drawn so as to show:

Shippers : SUPPLIERConsignee : As per individual plants orders 4.5.5 The supplier shall forward the non-negotiable copies of the bills of lading indicating the gross freight amount and rebate

allowed to the Shipping Co-ordination Officer, Department of Shipping, Ministry of Road Transport, Shipping &Highways, Government of India - New Delhi immediately after the shipment of each consignment is effected.

4.5.6 Shipping Documents For Imported MaterialThe supplier shall send the following shipping documents through banks to the purchaser:

Three (3) original and 6 (six) copies of clean bill of lading or one (1) clean Airway Bill & 3 (three) copies, in case ofairfreight

Two (2) original & Four (4) copies of suppliers signed invoices Six (6) copies of packing list

Six (6) copies of certificate of country of origin Six (6) copies of certificate from the supplier to the effect that drawings and catalogues for customs clearance purposeshave been kept with the packages for shipment

Six (6) copies of certificate from the supplier to the effect the contents in each case are not less than that entered in theinvoices and packing lists and the quality of goods are guaranteed as new and as per the relevant technicalspecifications

4.5.7 The supplier shall send by courier to the purchaser the following non-negotiable documents within 15 days after the dateof vessel sailing as per the mailing list to be provided by respective plants :

Bill of lading (two copies) Shipping specification (one copy) Quality certificate (one copy) Invoice Copy (one copy) Packing List (one copy) Roll certificate (six copies; one copy to be mailed directly to the Roll Shop)

4.5.8 The shipping documents must reach to the purchasers Kolkata / Mumbai Office, fifteen days prior to the arrival of thevessel at Kolkata/Mumbai Port. Original Documents should be presented in foreign Bank ( Beneficiarys Bank)within 21 days of date of Bill of Lading.

Bill of lading (two copies) Shipping specification (one copy) Invoice copy (one copy)

With the Cargo Quality certificate (one copy) Packing list (6) copies comprises 2 copies in case No.1 of each consignment of the goods and 4 copies in each case

(three inside the Box and one copy in a special packet at the outer side of the Box)4.5.9 CFR Delivery:

In case of transhipment , the Delivery Order shall be issued at discharge port by the firm's nominated freight forwarderor by his agent or by the shipping line on the submission of Bank endorsed Bill of Lading by the buyer.

4.6 Marking & Packing -4.6.1 Marking

Roll marking as per drawings / order Marking must be indelible and indicate consignees name and address, purchase order number and date, LC details,gross and net weight, dimensions of each package, name of supplier and import license details

Where necessary the package shall be marked with special markings such as Top, Bottom, Do not overturn, etc.as well as a special symbol indicating the top

Manufacturers number is to be engraved on every roll on the drive end surface . Drive end surface should be engraved with D. Catalogue number should be engraved on the idle end surface. In case the supplier is covering the right parts of roll neck with some protective paint, the solvent to be used to wipe

out the same should be intimated to respective plants before commencement of supplies

In case the supplier is following any colour code for identification of roll material, it should be intimated to respectiveplants before commencement of supplies. Alternatively, the supplier should be prepared to flash the ends with anycolour in case the plants have a preferred colour coding

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4.6.2 PackingThe packing must be of export standard. The packing must be strong and should be able to withstand thehazards of ocean voyage and multiple handling at ports. The packing must be suitable for tropical conditions.

4.7 Transit Insurance Transit Insurance from point of FOB to respective plant site for international supplies will be arranged byindividual plants at own cost.

On shipping, the supplier will intimate by fax, advice to the purchaser and purchaser's insurance agent withthe following details -

o Purchase order number and dateo Description of materialo Bill of Lading/ Airway Bill number and dateo Name of Vessel / Flighto Value of goods for the purpose of Marine Insurance, CIF valueo Number of packages

The Supplier shall indicate to the purchaser for the purpose of taking insurance policy, the replacement costof all supplies & services with the consideration of escalation and incidental expenses.

4.8 Arbitration -- REFER Clause 2.13

4.9 Agency Commission: It is not the policy of SAIL, per se, to encourage or engage agents. Hence, as far as practicable, engaging agents be avoided. However where it is necessary to engage/employ Indian agents by thesupplier, the following requirements shall have to be complied with: The Indian agent should necessarily have to get registered with respective SAIL plant. Proforma forapplication for registration is provided in Appendix 4 to RFQ.. The details of agent such as name, postaladdress, contact phone, FAX, e-Mail numbers should be provided in the offer. All particulars relating toagency commission should be reported to Enforcement Directorate. It may be noted that unless the Indianagent gets itself registered, as stated above, the agency commission will not be payable.

Authenticated Photostat copies of agency agreement giving status being enjoyed by agent and thecommission/remuneration/salary/relationship with the principal is to be compulsorily enclosed with theoffer.

The amount of agency commission / remuneration, if any included in the price for such agent /representative in India should be furnished in the offer (at Form 3b of appendix2)

It should be confirmed that the agency commission / remuneration, if any, shall be paid separately to theIndian agent, after receipt of materials in good condition as evidenced by GRN, in Indian currency as per theexchange rate prevailing on the date of the order at TT buying rate. No agency commission will be payableon partial shipment. As such, while opening LC, the amount in the LC will be order value minus the agencycommission.

In case of failure to furnish correct and detailed information as called for in the tender, the concerned offershall be liable for rejection or in the event of contract materialising the same shall be liable to termination bySAIL plant and actions as per practice followed in SAIL plants will be taken.

4.10 SAIL reserves the right to conclude the contract on FOB / CFR basis, or part FOB and part CFR basis; andalso to take the rolls at either Vishakhapatnam seaport (Disport for BSP rolls) or Kolkata seaport (Disport for

RSP, BSL, DSP & ISP) or Chennai Seaport (Disport for SSP). Also SAIL/Plant Units reserve the right toamend the purchase orders from FOB to CFR basis. While amending the P.O. from FOB to CFR, DeliverySchedule shall be extended by 2 months to accommodated shipping time. Despatch month for the PVC shallremain as it is in FOB case.

4.11 The bidders price quotation in accordance with the Para 4.10 above will be solely for the purpose offacilitating the comparison of bids by SAIL and will not in any way limit the purchasers right to contract onany of the terms offered.

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5.0 Explanation of Forms to be filled up :

Form 1 : Basic Information about your companyPlease use this form to provide basic information about your company- Please submit this form as a part of the techno-commercial bid

Form 2 : Technical details of rolls to be suppliedPlease use this form to provide basic information on the technical specifications of the rolls that you will supply. If thespecifications are as per tender specifications then under each column specify as per tender. If there is deviation in any one or more of the technical parameters, then please explain the deviation. Also mention thepotential impact of this deviation on the price and performance of the rolls. Use additional sheets, if required- Please submit this form as a part of the techno-commercial bid.

Form 3 : Commercial Terms for the tenderPlease use this form to indicate the commercial terms and conditions specified in RFQ. Form 3(a) is for Indianmanufacturers and Form 3(b) is for overseas manufacturers. Kindly fill in all information as required in the format. Therelationship certificate as mentioned in the form is to be submitted separately.- Please submit this form as a part of the techno-commercial bid

Form 4: Packing DetailsPlease use this form to indicate packing details of individual rolls..- Please submit this form as a part of the techno-commercial bid

Form 5: Delivery schedulePlease use this form to specify the delivery schedule of rolls. Kindly refer SAIL delivery requirement as per datasheetand give your best schedule accommodating the requirement of respective plant/unit of SAIL.- Please submit this form as a part of the techno-commercial bid

Form 6 : Item-wise base prices : ( FOR ONLINE PRICE BID )

Form 6(a): Item-wise base prices (FOR INDIAN MANUFACTURERS ONLY)This form is to be submitted in blank along with TC bids. Prices are to be submitted online as per details in Appendix-5. The base price is to include ex-works price, packaging & forwarding costs. The freight and insurance costs have to bementioned separately. The delivery term for Indian suppliers is FOR Stores of respective plant/unit of SAIL.

- Please submit this form as a part of the on line price bid

Form 6(b): Item-wise base prices (FOR OVERSEAS MANUFACTURERS ONLY)This form is to be submitted in blank along with TC bids. Prices are to be submitted online as per details in Appendix-5. FOB and CFR price of each item are to be submitted online in the currency as mentioned in Form 3(b) only. Kindlynote that CFR prices are on CFR-Kolkata basis for BSL, DSP, ISP & RSP and on CFR-Mumbai basis for BSP and CFR Chennaibasis for SSP.

- Please submit this form as a part of the on line price bidForm-7 : This form is to be filled up for declaration to participate in RA.Form-8 : This form is to be submitted as L IST OF DOCUMENTS SUBMITTED TOWARDSELIGIBILITY CRITERIA.

Note : ALL FORMS SHOULD BE DULY SIGNED & THE SEAL IS TO BE PUT BY AUTHORIZED PERSON AS MENTIONED IN FORM 1.ANY HAND WRITTEN ENTRIES ON ANY FORM WILL NOT BE CONSIDERED.

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6.0 Glossary of terms and abbreviations :

Abbreviation ExplanationBIM Billet MillBLM Blooming MillBSL Bokaro Steel PlantBSP Bhilai Steel PlantCenVAT Central Value Added TaxDSP Durgapur Steel PlantGARN Goods Acceptance & Rejection NoteGRN Goods Receipt NoteHSM Hot Strip MillHeSM Heavy Structural MillISP IISCO Steel PlantITC Input Tax Credit against VATLR Lorry ReceiptLSM Light Structural Mill

MRM Merchant & Rod MillPM Plate MillRFQ Request for QuotationRR Road ReceiptRSM Rail & Structural MillRSP Rourkela Steel PlantSM Section MillSRV Stores Receipt Voucher

DDP Delivery duty paidSSP Salem steel plantTM Tandem Mill

(R. K. PARMAR)DGM(MM) PURCHASE

SAIL, RSP, ROURKELA