Oil and Natural Gas Corporation Ltd Corporate Materials Management 2+ Floor, Tower-A, Deendaya Urja Bhawan, 5, Nelson Mandela ara, Vasant Kary, New Delhi -110 070 "ol (11}26782004 Fax ~ (01) 26128081 Crear No. 26/2018-Cum- MMM Amendment 362018 No: MATIPNICHT3{ 220)2016| Dated 28.05.2018, Sub: Quality and Cost based selection (QCBS) and QCBS with Least Cost Selection (bcs). Reference sited ta Cicula No. 06/2015 dated 31.01 2015, whereby integrated MM Manual was implemented in ONGC. Provisions under para 11.3peraiing to procurement on {uly and Cost Based Selection (ACES) were tobe implomerted after issuance of dotaled ‘guldeines in due cours, In the EPC meeting (052018) held on 07.03.2018 and 507th meeting of EC held on ‘ath & 10h March 2018, thas been decided that for procuremen: of rial nature of services, ‘consultancy services (where scope of services cannot be drawn objective) and where i can be sified, for meeting the requirement in an overall cost efficent manner, to adopt either ‘Qualiy and Cost based selecton (QCBS) or Least Cost Seecton (LCS) with minimum ‘quaifing marks. ‘Accordingly, inthe aforesaid meeting f EPC. and EC. fallowing decisions have been ‘taken with respect fo evaluation of ids on GCBS and LCS bavi: () Least Cost Selection (LCS) of bids with minimum qualification score: For selection of bids an LCS basi, minmum quaying marks for quay ofthe technical proposal shall be prescribed as benchmark and indicated in the BECRender condltions along with @ scheme fo" alloting marks for various technical ertera/tiibutes, Bidders scoring minimum technical qualifying marks shall be considered for pice bd opening and L-t among them shall be Considered for aware LLCS shall be applicable fr services which are characterized by high degree of technical influence and iow value (W) Quality and Cost based selection (CBS) of bids shall be adopted for procurement of following services = ime of Bavvk ing of cneuitancy srvices fer EPCMIPHIC servoes (Enginestng Procurement Construction Management Services. J Project Management Contrac) Hing of Creative Advertsing Agencies Hing of Architocural fsa o ” Sk “Type of Services = (Ww) | Hiring of Atories (Quaiited experienced professionals to render ‘advoe / senvos in business or legal matters) | (©) | Hing of Trainre 7 Faculty (ProfessionaVacadericians to impart ‘earng andlor deiver lectures on subjects of specialized nature) (W)_| Hing of Management Consutants (Wi | Hiring of services for Facility Management: (@) For Green Buieinge (©) For Conventional Buildings ‘Wil | Hing of senioes for specialized consuling Services || Ping of services for Event Management Agoncies (Pansing and | | exaling ltsgecale company mestng, spel vers, erring ‘evens, reunions ete. (G) | Hing of services for Integrated security soniies (Spectalized integrated “services involving Access Contl, Fire LiteSafty Systems, Alam Management, Photo ID, CCT! management, Physical Security, Video Management, Command “and Cantal systams etc) “The list of sevices approved above and the weightage (Tectnical: Price) shall be reviewed 2ased on the experience gained during the implementation ofthe pelcy after ove year. Separate approval woud be required to be taken incase of non-mplementstion ‘f GCS forthe speciied sennces. ‘Applcabilty of QOBSILCS wil be approved by a Commitee of Directors (CoD) ‘comprising o Director (Finance), Brector-Je MM and Dect concemed. The weightage oF respectve technical parameters (QCBSILCS matik) shall be proposed by the Working Group atthe work canter duly recommended by the: oncorned Key Executive and put up by Chief MM for the approval of CoD. 20S methodology shall be implemented while awardng contracts for rocurement/hiring fat ESP services in future. Similar QCBS matrix be frmed Up fr chatehinng of eillog rigs and other E&P services. Tha QCBS matrix be fied up by the working group for factoring in the practices beng olowed by ONGC Videsh and other PSUS in awarding contracts through CBS methodology ‘The socutty tenders wich have already been invited with QCBS methedology hall be ralzed based onthe decison taken by EC in 405" mating,(V1) EC had in the past provided quidaines on the QCBS methodology. This supersedes eater decision of EC on ACES. (Vin. RegularRoutine procurement characterized by low degree of technical Influence shall continue to be procured as per existing precice, wherein bids ‘ate shortlisted for price bid opening as per standard qualification ceria of BEC {or sence contract, ‘Accocdingly, modifed provisions for procurement on QCBS and LCS basis have been incorporated in MM as per enclosed Annexure, ‘Above guidelines should be meticulously followed by all concemed, lee si 6 (Ashwin Nagi) ED-Chet MM Services Datindon _(Trouh ONGC ian wade cogepor net) [i conesriod may downions he cular rom thea, Har copls ar not trues separately, ‘Sonnet, 1. £01 CMO, ONGC, New Den 2. Geko Brome (T2FS)/ racer (Otee} / Drecr (5) /Orecor(ExpeaboniDrecor (Onshore / ‘ros Fons) ONGC. New Doh 4. GVO, ONGC: New Bal‘Annexure-A Existing vis-d-vis modified provisions of Integrated MM Manual. Existing Provisions Modified Provisions na ‘Quality and Cost based selection ‘Qualiy and Cost based selection (@CBS) ‘Applicable for procurement of following erica nature of services which ae characterized by high degree of technica influence ana high valve impact {and where I is justifiable to pay appropriately higher price for higher ‘ual x Type of Services w Ting of consultancy ‘services for EPCMPNC series, (Engnesting Procurement Construction Management Services 1 Project Management Contact @ Hinng of Cresive Advertsing Agencies (i Hing of Architectural fms. w) Hirng of Atornies (Cuaified experianced professionals 1 Fender advice service in pusiness o egal matters) w Hiring of Trainers 7 Faculy(Professinalacadericians to Impartainng andlor dalive lectures on subjects of specialized | ature) co Hiring of Management Consutants co} a [gravis fr spats eats SENSE Finng of envces for Fanity Management (2) For Gren Bunge _(6) Fer ic) Hiring of services for Event Management Agencies Panning ‘and executing latgescale company meetings, special events ‘poring evens, reunions etc) @ Hing of services fr Integrated secuity serves (Spaciaized integrated services inveling Access Contra, Fre Life Safety Systoms, Alarm Management, Photo IO, CCTV management Physical Secutty, Video Management, Commend and Conti systems aie)Para ‘No. Existing Provisions Modified Provisions iat ‘QCBS uses a competitive process among fms that takes info account the quaty and the cost ofthe ‘Proposal inthe selectonof the successful fm ‘OCES uses a competive process among rms tat lakes lo account Th ‘ualiy andthe cost ofthe proposal inthe selection ofthe successtu frm. Taz | Procurement iypes have tobe classified into one of | tee categories to assign relative Weightage for ‘qualty and cost ‘2 RegulariRoutine: Characterize by low degree of {echnical influence, Wesghtage (Technica! Pree) = (100 to 2080, . Specialized: Characerized by high degree of fschnial influence and ow value impact of tender, Weightage (Technical: Price) 50:50 to 60:40 ©. Cita: Characterized high degree of technical influence and. high value impact of tender: Weightage (Technical: Price) - 70:30 to 100:0 4. where degree of techical influence i determined bbymult-disepinary team based on “Considering the technica influence and value enpact ofthe above series ‘proposed to be procured, relative Weightage (Technical: Price for quality and cost shall be assigned as under: Namie of Service Weehtage (Techmea.Pice) 1) [EPCMIPMG senices 70:30 (| Creat Advertsing Agencies | 70.30, “| Architectural firms. 7030 (iw) | Atornes 7030 (V_| Trainers /Facuy 7030 [M)_| Management Consultants 70:30 (wi) | Facity Management 70:30 || °° | (a) For Green Bulngs (b) For Conventional Bulaings (wy4080 || | Seesieea contra) Gasp {| Event Management Agencies | 70:30 (6)_[inegrated securiy services | 40:60 Fo other cases, degroe of techical influence shall be determined by indenting department case on varous parameiers. Alt ave ht Of ‘Such parameters s provided hereunder‘Existing Provisions ‘importance o Teahnica competence > Carticatone Productserice conformance to roimsispecs: Expected lifetime (f applicable) Importance of experionce of fim or key personnel (as applicable) I. Importance of Servic levels > > > “Timely detvery Lead me Warranty and support experience ‘Support coverage i, Degree of citferetiation of offerings > Technological simlarty of oferings Functional Substiutaity of competing offerings Value impact of tender wil also be determined by smultedseipinary team ang wil roles the net > > > > > ~ weaiioa Previstons 1 Tnpartance f Technica competence Centieations roductiservice conformance to norms/specs Expected ife tne if applicable) Importance of experience of fim or key personnel (as applicable) is mpottanee of Service levels Timely delivery Leo time Warrenty and support experience ‘Support coverage fi, Degree of diferentation of offerings ‘Tecrnological smarty of oferings Functional Substiutaity of competing ofeings Value impact of tender wal aso be determined by Indentina departmentPare No. Existing Provisions Modified Provisions cceent value of neta {Betender Mulidiscminan feam ral below ES Stevel civ consid bv fe Key Exacave stall fmarage, ser findentori nate {cascuty report ean bs laveraged fo determre fe 133 ‘Approval for implementing GGBS fora category of its wll need to be obtained from the EC, Relative ‘weightage and template for CBS evaluation are to be decides by Mut-lscpinay team fr the tender ‘which wil be approved. by EC for frst. time procurement of Goode/ServioeslLSTK Project For Subsequent tenders, ino changes in parameters of GCBS are made then the same template can be foliowed wih approval of CPA: Concemed Director vil nave full powers for EPC lava eases Considering the technical influence and valve impact of the service proposed to be procured, for appcablity of CCAS indenter shal obtain the approval of a Committee of Dectrs (CoD) comprising of Director (Finance), Diecorle NOM and Director concemed. The weightage of ‘respective technical parametors (ACBS matrix) shall be proposed bythe \Werking Group at the wark center duly recommended by the concemed Key Executve and put by Chief MM for the approval of CoD. Th3a ‘Bid package. The evaluation critera based on Concerned Directors decision on relative Wielatage of cost and quality slong with cera and weightage of ually related parameters need to be Clearly mentioned in the BEC. Bid package: The evaluation err based on the decision of competent authority on relative Weghtage of cost and quay along with cntera and weightage of aualty related parameters need to he cleafy mentianed the Bee 135 ‘Tender evaluaton: The evaluation of he proposals shall bo carried out in two stages: ft the quatty. {and then the cost Evaluators of techno-commeria| ‘iopasale shall not have access io the ie nis [nthe echno-conmmercial evaluations concluded, Fr ais ena be opena0 on ually score and techne-comme’ca host sting of bars for |__| senna sal be epgroves by Competent Purchase “Tender evaluation: The evaluation of he propasals eral be armed outA two stages: fist the qualty, and then the cost. The evaluation shall be ‘ated out in fl conformity withthe provisions of the tender documentsPare No. Existing Provisions “Wodified Provisions ‘Bacess. recommendation for acepianesejecton ‘gf bicdele) ehal_slze equce the spore _of Eamostert — Puch wl have ful powers The ‘Svatuaton sal be cared oo fl cone with {he provsies of the tender documects '. Techno-commereial evaluation to be cared out by respective indenting officer and team including IMM an finance forte recived bids. Alley errs fon quality are objectively scored and weighted 9s er Weightage described in the BEC of the bd ‘The tender committee is authorized to seek any Clanfieabons from bidders a ths stage # necessary, », Cost evaluation to be carried out as done under {wo bid open lenders and fms are given scores as ‘er guidance provided in BEC with maximum score being provided to lowest beser(L-1) ‘Commercisl Score = (100 Lt) Bidders Price "2, Techno commercial evaluation te ba cared ou by respective dering ‘officer and team including MM and finance forthe received bids. Al Key itera on quay are objectively scored and weighted as per Weightage ‘described inthe BEC ofthe bi, ‘The tender committee is authored to seek any clarfestions from bidders al his stage if necessary »b. Cost evaluation tobe caried out as done under to bid open tenders and ims are ven scores as pex guidance provided in BEC wih maximum Score being provided to lowest blader (1) Commercial Score = (100 * Lt) Bidders Price 7138 ‘The contract shall be awarded’ the vendor wih the highest combined score calculated using the Tellowing formula Combined Score = (Quality Score assigned to bidder x Technical weight %) + (Commercial Score assigned to bidder x Commercial weight %) ‘The contract shall be awarded tothe vendor with the highest combined score calculated using the folowing rma Combined Score = (Quality Score assigned to bidder x Technical weight | ‘%) + (Commercial Score assigned to bidder x Commercial weight %) TST Ral reasonabiliy Rata reasonably not required In QCBS metnodelogy Rale_reasonabilly Rate reasonably ie not required in GCBS methodology.[Para Existing Provisions ‘Wodified Provisions No. 7138 [im case the bidder with highest combined] in case the bidder wih highest combined score(refered as BT below) store(efered as B1 below) cannot meet the ful | cannot mest the full quantity othe tender, the bier wth the next highest ‘quantity of the tender, the bidder with the next | combined score (othe bidder with highest technical scare among the highest combined score (or the bidder wih highest | remaining bidders, as specified in the tender document) (fered 38 B2 technical score among the remaining bidders, as | below) wil be asked to match the combined score of the bidder with spectfed in the tender document) (fered as 62 | highest score below) wil be asked to match the combined score of the bidder with highest score, ‘Combined score can be matched by the bidder 82 | Combined score can be matched by the bidder 82 through reduction in {eoigh eden in pee ony a8 pe he folovina| ace ol as pe the foowina formulas: “Target price to be matched = “Target price to be matched = s00"iowest price bid among all technically 100"iowest pros bd among all technically acceptable bders accoptable bidders (Dwices by) {(Dwiced by) ((Dilerence between combined score of B81 and 82 J Commercial ((Oierence between combined score of B1 and B2| weightage %)"Commercal scare of 82) 1 Commercial weightage %X)+Commecial score of 2) TAS | No provision ox Inthe GCBS aystom, as the evaluation of bide aha ba Based on combined score (Technical parameters and prices), purchase preference poicies | (ike Potcy for MSEs and PPLC etc) shall not be appicatle. va ~ We Provisions exist Least Cost Selection (LCS) with minimum qualfeation score. ‘Agplcabe for services weich ara charactenzed by high degre of echnical influence and low vaive impact. Value impact of tender wil be Getermined by Indesting department. In case of projects, calculatons done for ‘easily report canbe leveraged to determine the same Tat Under Least Cost Selecton with minimum quaifietion score, the lowest proposal with lowest cost among those that passed the minimum techrical Score shal be considered for wars,Pare No. Existing Provisions Wadified Provision Taz ‘Considering tie fechrical influence ofthe service proposed to ba procured, ‘marks for Technical Weightage far shotising of bide shal be assigned Tas Degree of techical influence shall be determined by Indentor as per provision under 1.3.2 above Tae ‘Approval for implementing LCS wit minimum qualiieaon Tanks Tora Clegory of items, techrical weightage. matrix and template for evaluation shallbe decided and approved as pet provisions under para 113 above Tas id package: The evaluation citeria based on Concerned Weghtage of ‘ually related parameters need o be clay mentioned in the BEC. It shall be spectfid inthe tendo contons that ONGC shal selec bidders scoring certain pre-defined minimum technical sore for opening of pice bids. The minimum quality scare required for election of bd for price bid ‘pening shall be leary indicated in the BEC. 146 The Technical bs sha be evalusted onthe basis of har responsiveness and point system specified in the Data Sheet supplied wih the tender ‘document Each responsive offer willbe given a technical score, An ofr ‘hall be rejected at his stage Hf iis nt found responsive orf fas fo “achieve the minimum technical ecore inated inthe Data Sheet provided _alang with the tender document. iar Poe evaluation fo be cari aut as pee BEC. Tae |The conirect shall be awarded to the L-1 bidder based on the pre evaluation ofthe bide Tag ‘No provision exist Rate reasonably: Ralo reasonably shall be Gelammined 6 per provisions on ascertaining the reasonably of rates, ‘QCBSILCS with minum quaifeaton marks shall not be adopted for procurement of goods (except for premium bits which shal be procured as et para 28 of MMM) are LSTK contact,