INDIAN INSTITUTE OF PORT MANAGEMENT Venue : Chennai Port Trust PROGRAMME ON Tender Processing (March 28 - 30, 2007) Topic (i) Tender Processing (ii) Tender Evaluation Techniques & Case Study By Shri P K Datta Consultant20 PREQUALIF Ds NSTI RK INTRODUCTION Applialions for pre-quaiifcation of contractors forthe construction of Cwl Works were invied through Pre Advertisement at the end of November, 1997. The Pre-quaification Documents were issued on raques! to the prospective bidders from the office of the Chief Engineer between December, 1 to December, 8. 1999 The nolfed last date for submission of ie bids was Devemiver 22, 1999 The following is the list of ten (10) contractors who submitted their Pre qualifications Bids wihin the due date A. Limted 8 Limted ©. Limaea D Limited E Limited F Limited G. Limited H. Limited 1 Limited 0 Limited 1 2 3 4 5 6 7 8 8 t The under mentioned seven (7) parties were also issued with the pre- quafication documents, but, did not submit thei bid applications 1K. Limited 2 1 timed 3M. Limited 40. Limted 5. P. Limited 8 Q. Gimted 7 R Limited METHODOI mM For the pre-quaificalion of conlractors for Chil Works, the guidelines Tecommended by the Asian Development Bank have generaity been followed The qualification of the applicants have been evaluated under three main criteria and sub-crieria thereunder and weightage factors for scores given in percentage marks a) Financial Capabuty 30 (Annual Turnover 10, Working Capital & Net Worth - 19, Applicant's Financial Arrangement ~ 6, Prottabiity 4)30 b) Managerial Abily and Equioment 25 (Management - 10, Staff ~ 8 and Equipment-7) ©) Work Experience 46 (Pling Works - 10, Concreting 10, similar works/potential, for riverine and marine ~ 20 and Customer's satisfaction ~ 5) ‘ Total: 100(percent) ‘As per ADB Guidelines, minimum score needed by an applicant to de considered for pre-qualficalion is 50 percent of the maximum for the respective Criteria group total marks and 60 percent of maximum total marks. However, due to extreme urgency of the project and the requirement for very tight time bound completion schedule, a minimum score of seventy (70) percent uf the maximum (total) marks has Been eansirerad advisable and was fixed for pre-qualification of contractors Two of the tenderers namely B Limited and P Limited did not fit up prescribed sk schedules for information given In the pre-qualiication documents despie Clear advice in the Instructions {0 Tenderers. if time was not a factor, the Consultant could have asked the lenderers to Til in ihe schedules and resubmit information. These incomplete applications have not been considered further for pre-qualification of contractors, SCORES AND RECOMMENDATIONS Fhe ist of parties who met with the minimum prescribed quaification marks and were found pre-qualfied and {hose who were not pre-qualified an the basis of Scoring aystem adopled as per Section 2.0 above are given below, along wih the marks seored by them, The details of marks scored by individual applleants pe, agafe rating forthe financial capablity and work 3.1 Tenderers who are pre-qualified [Company [Financial Managerial raik Experience] Total Marke [capabitty —[Abilty. Plus] (Max. marks 45) (Max marks|Equipment \ 30) javataniny (max, marks 25) Romer ae a 7 ties pd 3 7 7 [Etmred cca | rate EJ a40 [comany [Franca ——itanagerat Abiny|\vork [roar t Capabity [Plus Equipmentfesperience —_|ivarks (Mar markslavaiabuny. {atax|(Max. marks) So) marks 25) oar Teams Sone gue Climate Tacomplete Seheduies Dimitea 7 z = a7 Taner 7 1 wae [Stes 2 T Be Tomes za we 7 a aed 7 7 % i GENER, Ts Y Bis The main comments on all pre-qualffeation landers tecewed or hereunder The details are ghe in Annexure 41 Tenderers who are pre-qualied 1A Limited These three companies have scorad al tho minimum 80 percent qualifying marks 1 2. B Lined all three eriteria and also secured above 70% marks in the overall total All these 3. © Limited companies have executed more inan 10 major verine/marine projects of simiiar nalure and have good track records. 42 Tenderers whe are net pre-qualified 1. B Limited and These two companies have not submitted any information in required formal Thee 2 C Limite applications are incomplete. Besides, they lack experience of works of similar nature. 3. D Limited Financial Data subwilled indicate that lhe company ie cunning in Ioeses for the past tow years. They nave not execited any tiverinesmarine works earlier4 5 6 1 F Limited @ and ‘Limited HLinted According 10 the information furnished, they have executed several projects in the past in marine environment including Oil Jellies, value ranging from Rs.3.60 to Rs.128 milion (max) The company however, lacks proper resources for handling major projects which are time bound. They have in hand a jelty works al Vizag outer harbour which is yet to be completed and also several piling and other construction works. Because of inadequate financial slalus, they may not be in a position to complete the ‘works Intime Both these companies are angaged in Construction works, but neither of them have executed any project of etly Works in ‘marine/tiverine envionment H Limited are contractors mainyy for buidings ‘and other land based works, They belong toa large construction and contract mining group. The company has executed —consicuction projects of various natuce, pipeline, chal and Indusicial works. Gut, they have very tle experience of marine/riverine works. As per their Ist of works, only two marine projects hac been undertaken by them, namely, Seaport Terminal (1895-86) and Lube Base OW Projeci Marine Works (1994-95). Also, Ihe proposed Joint Venture have no work experience of working logetlier in India. Hence, the applicant was iol found suitable far the job,~ Claritleation of Bid wents Abteawectve Bidder cenuting any clartication ofthe Bidding Documents may not he Purchaser n witing or by telex or cable al the Purchaser's mating widee rea tar timation for Bids. The Purchaser wil respond in wing to ay ‘Cequest for clarification of the Bidding Documents which i receives no ater than se daeeertt to the deadine for submission of bids prescribed by Ihe Puachescs saree copies at the Purchasor’s response (meluaing an explanation of ts soar) echinent idenliying the source of Inquiry) Wit be sent lo al prospective Biddy, ‘which have received the Bidding Oncumante nie brit Te the deadine fo Submision of bids, the Puchaser may, fo: any praapeeunetter 3 8 own intiative or in response toa clarifeation seqvctes, Sy Prospective bidder, mouity he Biaaing Documents by amendwect Busermendment wil be noted in wring or by telex oF cable to af prospective Bidders which have received the Bidding Documents and wil be binding moc scidet lo tford prospective Bidders reasonable lime in which to take ine Srenament into account in preparing their bids, the Purchaser may, at te dona’ ‘extend the deauline for ine submission of bids ~ Late Bide Ary BM recoWved by the Purchaser afler the deadine for submission of ids Fsagtee’ bY the Purchaser, wil be rejected andor retumed unopened to nos Biaser, > f cay Madky or wihdraw its bid after the bia's submission, provided tha Wee of the modification or withdrawal i received by the Purstiaser pir fa the deadline prescribed for submission of bigs The Bidder's modtication or wi and despatched in accordance wih the provisions. A warawal nilice may nae 201 by fol or cable but fotowed by a signed confirmation copy” pow meree ce later than the deadiine for supmission of bide No bid may be modified subsequent lo the deadine for submission of bids orld... 2a Clanfleation of Bid daa The examination, evaluation and comparison of bids the Purchase! My: To ase Manon, ask the Bidder for a clarfcalion of its bid The requesl (07 at cation and’ the response. shall be in writng and ne change in the price oF SSbstance of the hid shall be souahl, offered or permitted Pretiminary Examination Pretminan Exar oramine the bids to determine whether Ihey are complete i For any computational errors have been made, whether required Did secily raerrer a fornished, whather the documents have been properly signed and whether the bids are generally n order taids from Agents wihoul proper authorization fium the manufacturer shall ie treated as non-responsive ‘Acimetical errors willbe ‘ecified on the folowing basis, If there is a discrepancy caMtmentne Unt Price and the Total Price that is oblained by mufiplying the Unt peice and quantity, the Unt Price shall prevail and the Total Pre shall be corrected Trine suppter does not accept the correction af the erors, ts bid wil be ceiecled Trane saePscrepaucy between words and figures, the amount in words will prevail Prior to the delaied evaluation, the Purchaser wil determine the substantia} ret msiveness of each bid 10 the Bidding Documents. For purposes of inese Canees, 9 substantialy responsive bid is one which conforms f0 al the teins and ca ons of the Bidding Documents without material deviations. The Purchasers serarmination of a bids responsiveness i to be based onthe contents of he bid (Iseir without recourse to axlrinsic evidence. [A bid determined as not substantiaty responsive willbe rejected by ihe Purchaser Aa pay nol subsequertty be made responsive by the Bidder by covrction of (he ‘non-contormity ‘The Purchaser may wale any minor informality or non-conformfy or wreguarty in @ ree eatoes not conaliule @ material deviation, provided such waiver does not prejudice or affect he relative ranking of any Bidder Lonversion to Single Ci conversion te Salon -aiW comparison, the Purchaser wal convert al bic prices Goprested inthe amour in various currencies in which BX Price payable, fone careermrency of the Purchasers country at the BC seting markel exchange rales voraished by Slate Bank of India in the Purchasers country, for” sinlar Transaciions a8 00 the date of Lid opening, Contd pia ~ Merit Point System ‘The following Meri Point System for welghing evaluation factors wil be applied (Choose trom the range of) Evaluated price of the equipment 60 to 90 — Price of common ist of Spare Parts 0 to20 Technical features, maetenance and operating costs 0 1020 Service and Spare Parts avalabity 0 to20 Standardization 0 1020 1 100 ‘The bid scoring the highest number of pois will be deemed to be the lowest ‘evaluated bid ~> Liguidated Damages {the Supplier fafs (0 delver any oF aX of the goods or perform the services within the line period(s) specified in the Contract, tne Purchaser shall without prejudice to ls other remedies under the Contract, deduct trom the Conlract Price, a3 iquidated damages, 2 sum equivalent to (...) percent of the delvered of the delayed goods or Lunpertormed services for each week of delay unl act delivery or performance, up (0 ‘8 maximum deduction of (..) of the delayed goods or services Contract Price Once the maximum is reached, the Purchaser may consider termination of the Contract1. Financial Capability Annexure-tiA SCORE RATING (Annual Tum Over (in Million Rs.) Maximum marks is 10 and minimum mark is 3 (2) Annual Tumover (b) Annual Tumover (c) Annual Tumover ()_ Annual Tumover (e) Annual Tunover Marks. greater than 5000 10 between 2500-50008 between 1500-2500 6 between 1000-15004 less than 1000 3 (ii) Working Capital (in Mition Rs.) Maximum marks I$ § and minimum marks is 1 (a) Working Capital (b) Working Capital (©) Working Capital (a) Working Capital (e) Working Capital (lil) Net Works (in Milion Rs.) Maximum marks is 5 and minimum marks is 4 (a) Net Worth (bo) Net Worth (c) Net Worth (d) Net Worth (©) Net Worth Marks greater than 1000 5 between 800 - 1000 4 between 600 - 800 3 between 400 - 600 2 less than 400 1 Marks greater than 1000 between 800 - 1000 between 600 - 300 between 400 - 600 less than 400 Anes| ANNEXURE-I/2 2. EXPERIENCE (I) Plling/Concreting Works Maximum marks is 10 and minimum mark is 5. Marks are asec umber of projects completed during tha last 10 years, (ii) Similar Works Maximum marks is 10 and minimum marks is 6. Marks Above 20 similar projects 20 Between 10-20 similar projects. 15 Between 5 - 10 projects 10 Nominal Experience 8Annex [COMPARATIVE STATEMENT OF PREQUALIFICATION INFORMATION OF VARIOUS TENDERERS LIST OF ITEMS WiTH ‘A LIMITED [ B LIMITED REFERENCE TO INSTRUCTIONS TO THE TENDERERS | Type end nature of the organization Pubic Ud Co | SOI Enteipise | [Grganizaton Ghar Enclosed Enclosed ia Bankers State Benk of ladia | | Banque National De Paris | | [Crect Lyonna's | |Banque Indo Suez | ‘Bank of Bevoda | |Dena Bank, Andhra Bank | a ——|State Rankattivderbad |__| Financial aus (inmiions. [inion ‘a. Annual Turnover 4974 2039) 'b_Peidyp Capita ese tar aE i [cCurent Assets 1537 [oneggos ea) [a Curent Linbiies 850 1682 io. Working Capial 687 803 Nel Worth S72 | [g_—_Bank SoWvency Certfeate Enclosed Enclosed] ‘Key Personnel a. Project Manager ] [b._Works Manager.1 a | Works Meneses zl INCOMPLETE J@Ennineetina Graauaies | Scuepues | 0) Design 9 | scheoutes (i) ConstructonSupervsion at ste 156 (Plant & Equipment AdequateCCONPARATVE STATEMENT OF PRE GUALFIGATION INFORMATION VARIOUS TENDERERS TST OF EMS WITH FURATED SUMITED REFERENCE TO INSTRUCTION TO THE TENDERER [Hype andnature ofthe rset Prvale Unnied Go. [Bubie United Go ‘Ongaicalon Chat Enclosed Eeed eae Bancor oncds — [Sate Brot [State Bank of tycorabad State Bark of Seurasnra [Comers Ben, cic baniing Gori, No Ban Financia satus > TH SASS rR a. AnruetTumover 235 2027 lb. Patdou captal 18 208 lc. Curent Assets 11 1170 Curent Lisbites Je es a0 710 Je. Working Captal a 41 Inet worth m 1115 |g. Bank Solvency Cenincate Enclosed excosea | 1 D 1 Works Manager 1 id. Engineering Graduates j INCOMPLETE SCHEDUI © Design (i) Conarution/Superision 4 | wate Pans Cape aeaats ——HCOMBLETE SHEDANMEXURESIUS COMPARATIVE STAT REFERENCE TO INSTRUCTION TO THE TENDERERS TST OF TEMS WITH [LIMITED EWENT OF PRE-GUALIFIGATION INFORMATION OF VARIOUS TENDERERS ToMireD 4 [Type and nature of the organization |Pubiie Led Co (Publis Limited Go. ‘te |Seganization Chart Enosed Endosed [Bankers Hong Kong Shanghai [United Bank of india. |Bank Corp. [Standard ‘Chartered Bank [eco eux Federal Bank Uti Bank | [Bank National De Paris | [Gobel Trust Bark [ABN AMRO Bank Financ Sats Tama — Ja. Annual Tunover 1264 Jp Pan capt! 8 le Curent Assets 497 la. Curent Labiltos s010 le. Working Capa! 513 I. Net won 402 Jo. Bank Sohency Centneate Enclosed 7 - | a. Project Manager 1 | lb Works Manager! 1 | ar tnrte | | INCOMPLETE SCHEDULE a. Engineering Gracuates | © Design 4 | (i) Construcion’Superdsion at 20 fe | an 5 Eqipnent ———~Tadequate____—TnadeguateANNEXURE-IV4 “ COMPARATIVE STATEMENT OF PRE-GUAUIACATION FORMATION OF VARIOUS TENDERERS L______of various tenperers_ . [ust oF ems wir | REFERENCE TO INSTRUCTION LIMITED D Limite | TO THE TENDERERS J “Type an nature ofthe organisation] Puble Limited Go, [G.O.1 Enterprise | |Grganszation Chart Enclosed Enclosed | | ae State Bank of india . |eanmors [state Bank or inca Sate Bank of Inlay [Financial Status ‘inmilionsy Garationsy | ‘3. Annual Tumover ts0a0 | 4101 . Paidup Capita ans 200 lc Curent Assets 32017 a79 | 4. Current Liabilities j 18452 3952 | Je. Working Capital | 14366 827 | |r not worth 31040 | |9__Bank Solvency Certificate Enclosed Enclosed | Key Personne! PeakiAverage |] ja. Project Manager 1" 5 Works Manager-! | oan | le Weeks Meneger-Il on INCOMPLETE SCHEDULE, 14. Engineering Gracuates | © besign, 1 | (i) Consruetonsuparion wa Plant & Equipment [Adequate incompleteANMEXUREAIVS [COMPARATIVE STATEMENT OF PRE-GUALIFICATION INFORMATION ——] OF VARIOUS TENDERERS TO THE TENDERERS | [Type and nature of te organvsation|G.O 7Pube Ld [PUble Limited [Cxganization Chart Enclosed [Enclosed | | Standard Chartered Bank | | | | | [_ustormemswmm [ ] | REFERENCE TOINSTRUCTIOY ¢ LIMITED | J UMITED | [Allahabad Bank, ‘State Bank of india |Bank of Baroda ravens |Syndicate Bank. [State Bank of india. | union Bank or inca Hong Kong Bank Finanelat Status = ‘in mlvons) {in rtions) | la. Annual Tumover err 176 | |b. Paidup capital | 38 26 | ©. Curent Assets | 760 i | |. Current abies 308 862 Je Working Capital 453 201 [tet Worth | 227 g._Bank Solvency Certificate t Enclosed I Enclosed Key Personnel - ie Avys/Peah } Ja. Project Manager | 1 |o. Works Manager- | 1A | Je Works Manager [cout a | ‘4. Engineering Graduates | (Design, | (1) Constructionssupervision | | t atsite [Plant & EquipmentTSTOF TERS RUNES SUMED WITH REFERENCE 10 INSTRUCTIONS 10 THE TENDERERS |Sitllar Work Experionc{ Severn Cargo Bea INCOMPLETE —| (Prace/Summery of [Berth forPOL and Buk Liquid Chemicals, scHeue | |Exparaneny INew cade Oa Beth, Liquid Cargo Bert. | | | ‘Second 04 Jty (Abou 10 | | snl works compatd in ast | | 10 years. ee [Major Works Done Near 50 Warne Works conplelod nies yeas |(vaersroad Scope ot |Constucton or Seventh Curve Best E175 m Were leer No.1 Rs. 106 m, | ‘New Crude 04 Bean =Rs.133m | COMPLETE | i [Oi Terminal Rs. 474 m, ocremner | [Consructon of Jetty No. 1 £2 Rs. 377 m | Sewage System outa -s.io1em. | _Rrolects in Progress [Nearly 8 Marne Won hi propnsafos! auaraad ] |estmatea valetreed Fishing Herour Fs 260m |seope of wort ‘Sea Water nike for Mane Ot Terminal "Fs. 192 pee ed = Rs68m.ete,| SCHEDULE | | __ANMEXURESIT TST OF TEMS FURTED STRATED WITH REFERENCE 1 INSTRUCTIONS TO THE TENDERERS| "Sinlar Work Expertenc{On Tana Tae ‘Ronmperence (Pracefsummary of Buk Cargo Temanals Si nos |Potteroour Experience) |Degaussiny ety truce |Addtional Fishery Facities [Constructo | {un prpose Berth [LPs Hancing sety 1 (LPG Handling Jelly INewiy 18 proecs completed nat TO years n Marine [ExDenienee a Plans [Watuexoad Scope of and Structural Projets of valve ranges between Re3.6m [Construction work) [ors 12m |storage, I [Pmpetines, Building | | [Complex Factory | sheds, sos ete out | ony ine | | Structras |Brojocts in Brouross [Pie foundation or fourlanning and Total Vue of Work Jrestmated vation |srengihnnang of it Rs2e4m | inHensis (22090 of wo) [Soi Oensieaionby stone cots metbod =a. 74 |e Bo0dm bu no |atany Ping woe m pogrese ola vale Imaine project in Is around 5.100 m progressANNEXURE-WV TST OF ITEMS FUMED ‘Sinitar Work Expertonc No experience af HUN Marne Works (Placersumary of ory lied experience i sia Woks, T TRATED |e experiance m Gonsinicton ot] {Liquid Cargo Bexth of senior Experience) [They have executed only 2 projects con nature and capacity Jey a3 m [rutin of Bering Jetty and Consinuctin [Ping work fr approach ety tor [Pipe Trestle or Lube base OM Project. |Sea Water inlke R38 thr |The dow Vertue have ave not worked |riehing Harbour R.8 m ieee in nda before, t Major Works Done |Have vasl expvienco in dlferenl fields and” |Aboul 140 works conaleledin@ (aluefBroed Scope of nave executed various projects but very [period of 6 years wih a maim vo finited experience in Port and Harbour’ value of Rs 232 m Neve Note | suet. (Projects in Progress ls no_ oF 28 work hand The [(esimated valuetsroad [value of workin hand is around 16650 [scone af works |nin marine aited project in progress Press Project for Reserve Bank of nd, Mumba [infomation nl providedNEXUREIUS TST OF FEMS ERATED 7 URTED WITH REFERENCE 7° INSTRUCTIONS TO THE TENDERERS| | Simttar Work Experiene| | PlacerSumnmary of “roerience) — | Major Works Dono: esa ‘Scope of hws) [Exension of Dock, quid Gage Jely and RO [on Roh of dey. Construction of open Sea Jetty. Ionstrution of Bind ad Jet. ‘Comeleted 10 major projecs ih herbourpod |stucture in ast 10 years. Total value of work [recuted inti ed is Rs. 1341 m. Experience [in ther Reds eso vast [Projects in Progress [Value ofwork in Randis Re 27260 m. [estimated volurrond |Presemy 13 major toects ac in progress Jaen of works wich includes 2 marine elated jobs [Mul purposely. Lat, To experionce in Poriharbour 'Sructure Constructions |Five executed projecis many |in Steal Plants, Factors, [Pyovers and Srages. They \nave evecuted pine woos afferent pejecs with Jinwcnum ameter 1000 im, Toll Value of Work in Hand {Re 321 oy bt no marine |proiet in prosesANNEXUREAW10 UIST OF TEMS WITH REFERENCE T% INSTRUCTIONS TO THE TENDERERS| TUMTED TOMES 'Sinfar Work Experienc| (complete Schedae "Stenginening ov quay Wal Tors (PlscerSummary of Ieper. Etenson 9 Guey Fece of Ewetence) ier | Consruetn ot ton Ore handing ty. = | | papose tern | [Construction of asitina Crgo Bath Many chor vir works veut oung | thelat 10 yeus "Major Works Bone lnconnile Sebedue Fave eeeied procs Mabou | vaueriroed Scope of ianaPon Stes. Woning wor |seope of work - Vaiuaoroed leperience Ath almast ef tye Por Trusts ‘Total value of work executed in his fel during last 10 years is eround jis RET716 m, | [Total vahia of wot Hand Ra 630m) Presently 6 Morne related Projects re ln progressPrice Bids for 3 nos. Pre-qualfed Bidders namely A Lid, JLid & E Ltd were opened om due intimation (othe above partis ona sutabla date The prices quoted were as folows ALimied - Rs. 18 c10 Lined © Rs, 20 crores ELimted = Re 22erores Now, a6 par ihe guide lines of Slandard Bidding Documents kw World Rank, FIDIC, ADB, Ministry of Finance, Govt, ef India ele, the fofowing mer poi system for woighing evaivation factors may be applied 4. Evaluated Rated Price for works/equipment -+ Choose between 60% to 90%. 2. Evaluated Raled Score for Pre-qualifeation Crtoria ->.Choose betwaen 40% to 10% ‘The bid searing highast number (142) of points wit be deemed {0 ba the lowaet evaluated offer. The choice of weighing facior depends on the Purchaser depencing on how much weighing factor is important on Technical Aspects vis-d-vs Price Aspects. For ths project, let us consider the factor es fofows For Pre-quaification Part - 30% 1) For Price Part 70% > wi ‘The score already obtained for belng pre-qualified, should be muliped by 0.3 to gat the rated evaluation point ) For Pree Part ‘The lowest price should he takan ae 100 & (9 be mutilind by 07 Le the Inwest price as + Re-1B crore is evaluated as 70 pols. Other prices ike Ra 20 crores is evaluated as 18/20 X70 = 63 points and Res.22 crores as 87.27 poinks The chart bolow wil give a clear plclur an how to deal the matter. Ighted Evaluation Chart on Merit Point System Si Name of re. ice (RE) Seove aler muti. Total Rata Postion No. Lowest qualcaion ving weighted Score Bidders" Score, actor 30% of 70% of PQ Price 1 AU. 8 Woo = 60 545 Highes! Reling « ‘score 2 sue eee i te ec te 3 Eis at owe, 252 S27 Ra b 1m the above, H is seen thal Mis A Lid. scored the highest no, of points and therefore, # becomes the lowes! evaluated bidderCASE STUDIES Tivee companies &, B & C quoted for supply of certain tems. A is the lowesl, 8 bs the 2" lowest. None of he parlies submited Eames! Money Deposit, but agreed to deposi Security Money, but the material is urgent tequired for commissioning st 2 ‘wea plant, What action should be taken regarding the processing of ths tender A number of dems are to be supplied and installed in a Project. Some of the speciied materal. as was gin in tne orginal Bill of Quantities end suvsequeitsy ‘agreed by the cient and Ihe Contractor, were nol readty available inthe market, Oo \wouid be available al a much later date. For this, the echedule completion date of ‘he project would have been delayed by abou! §-8 months. How the case is lo he dealt with and how the prices are to be determined for adjustment in the Contrat lon lo the orginally specified materials? For supplying of a equipment, quotations were inviled. The price quoted wes Busic Price plus Taxes and Dutles prevailing at the time of apening of Price Bid. The rales Of Taxes and Duties ware cleatly spell oul in the quotation. The Delivery Period was 18 months. On te 11", month, a new kind of duty has been imposed by the Statutory Authorty. Normally, the Tender was decided in favour of party one on the ‘basis of calculation of prevaiing Taxes, Duties and other charges etc. Le. the landed price, Whal should be action on the pat of the client in regard to the payment of the ew impontion of duty during the pendency ofthe contract before deivery? |n.a supply and instalation contact, for an tem, the variation of Taxes, Duties as wall as the variation of Foreign Exchange Componen's, was agreed upon, the payment was to be made in rupee vaiue, Bul, suddenty, due to some unforeseen situation ‘and conpeiing ecumstances, the tupee was devalued abrupty.. Is the contractor gible or getting any compensation for the devaluation ofthe rupee in relation to Global Currency, Though, there was no provision for supplying of departmental material in a Project Contract, due to compeiing situation and Io get the Project completed in tine. some artmental materials had t9 he issued by the client. What should be the procedure Of tacking the sivation and how the adjusiment of prices wil be figed and made from {ne Bil of Contractor. The book value of the materia is known: ang Ihe order and doing a part of tre work in a project, did not ihe work and Wit the se How the stuation 1s to be tackiag and what should be adopted for completion of the project ae well as recovery from iCase - 1 Purchase of Light Fitting nan Blectrical Enginnering Tamder, limited quotations wer inter from Philips/Crompton/# their authorized dealers, The aypraval quotatioa was obtained from appropriate authority de to unger the imited On the due date of opening, three offers were received L. (A)-+ Dealer of Crompton 2. (B) + Denler of Crompton 3. (C) > Manufacturer ~ Philips ‘The tentlers could not be opened on duo daty as only firm (A) deposited Earnest Money as per tender condition. ‘Three extensions were piven lor the date of opening, On the third extended date only the etfer of (A) was opened since no other olfer could be obtained neither (B) c: (C) spbmitted Fame Money deposit. (On nerutinising the offers, the observations « 1. The offer of (A) is valid for 30 days instead days es per ten condition, Delivory period quoted was 6/8 weeks instead of ‘preforubly leas tu days" 3. Abballasts were quoted instead of Cu-hallasts Since the jab was of urgent in natura, negotiation carried out and the firm (A) was asked to confirm the followings Validity to he extendas tll 120 clay 2, Delivery to be made within 80 days. 3, Light tttings to be supplied with cu-ballasts only at their quoted rates: ‘The firm (A) confirmed the followings Validity extended for 60 days Delivery within 00 days. ALballaats would be supplied as por standard product range and price ‘quoted accordinely. What should be the action to handle this tender ?Case : TT Procurement of Idlers/Rollers for Conveyors ‘This tender was a very high value tender. ‘This tender was in two parts. Part - I Techno-Commercial Bid. Part ~ It Price Bid. 9 firms submitted their bids, Oitars wore opened on due date, A Technical Committee was formed and they huve submitted their report. ‘The Technical Committee rejected ane ofler om technical growls nett on the stipulations of tender specification. In the Press Advertisement neither the estimated value of the tender nor the total quantity to be procured was specified, And alao no datum toe Snancial stipulation regarding prequalification of bidders were mentioned in the Press Advertisement. Delay in procurement would hamper the operation, How to deal with the tender?Tender for hire of. Senerating sets 1 Thin is ¢ tender for hire of Diesel Genorating Sets 3: Tender were invited trough tess Advertisement. 4 On the die date, only two offers received. Hence, extension, siven farther & Quite next date also no further offers were reccived, Since the job was ‘urgent two offers opened with authoritys eoprecn Ornette anes ten that during the extension period, woth the fins Fionn shel Prices and mae upward revision de hikes ism ‘A'~ upward revision by O66 Firm B'- upward revision by Ome 7 Again within the validity period of offer, Fim ‘A’ reduced their revised Fenctae duo Firm "by shout 60,0007" per yen eed giving any Justification or Price Break-up, How to deal with it2Case-IV Tender for procurement H.T. Motor 1. This is a tender for procuremant of HT. motor for Conveyor ‘Administrative approval obtained, ‘This was a two part tender, Due date of opening was extended twice duc to inadequate participation. 9 offers reuvived anid opened ~ A’, Ba C ‘Technical Committee did not prequalify Firm ©'on technical grounds. Constituted Tonder Committee discussed with ‘A’ & ', the pre-qualified firms, 8. Addendum was issued and clarification received from ‘A’ de B', 9. On recorded acceptance of terms and conditions by ‘A’ & ‘B’, Price Bids ‘were operted, 10, ‘A’ submitted 3+, rovised Price Bid on date of opening of Price Bid and ‘B* submitted 2 revised Price Bid 10 days ago. Both were opened. LL. ‘A became lowest bidder, 12, The matter was referred to senior level Tender Comittee as per value. 13, Senior Tender Committee again gave a chance to Firn to supply as per CPT's tonder condition. “They did aut agrees 14, ‘Bimade allegation that only ‘A’ has been given opportunity to submit a 3% revised Price Bid om date of opening, which was nat correct and the sanie was refuted by the Engineer of the Contract. Im the Tender Opening Ropister. it has not been mentioned clearly whether the original or revised Price Bids are opened, How to deal with it? This is an urgent procurement work.Case -V Repair Contract for Conveyor Belts This is « tender for item rate contract.” Each item of work can bo operated independently. ‘There were about 40 items of work, Tender wan in two part bld aystem, inadecee being of Techno-Commercial Part was extended twico due to inadequate participation. Only one firm submitted offer and another regretted. Single offer opened with tue approval uf autionty, deviation gumittee decided to open single Price Bid, since, there wea no Aeviation in Techno-Commercial Offer, tyr Graning ofthe Price Bid, it was found that the fem deviate from Bog Spelling a, fixed charge per’ month, toned nae tet from and Supervision Chargoe How to deal the matter?