Supply of 10600 MT UIC60/60E1, IRS-T-12-2009, 1080 Grade Head Hardened Rails for Track Work of Ahmedabad Metro Rail

Project, Phase-I
Clarifications (Set-2) till 30-08-2016, Dated: 01-09-2016 IFB No. MEGA/AJT/1A
Tender Notification No. MEGA/AJT/1A Dated:08.07.2016

Part
S.No Section Page Cluase/Item Bid Condition (Relevant Portion) Tenderer's Query MEGA's Response/Clarifications
No.

In case of Foreign Bidders Port handling charges in the same currency as paid to port
Port handling charges as per documentary proof (paid to Port
authority may be reimbursed to Foreign Bidder’s nominated Forwarding Agent upon the
Section II ITB 14.8 (b) authority only) will be reimbursed to Supplier in the same
1 1 BDS-6 issuance of authorisation letter by the bidder. Or if aforementioned request is not Tender Conditions Prevail.
Bid Data Sheet (ii) currency as paid to port authority. Stamp duty charges if any
acceptable then: Port Handling Charges may be reimbursed to foreign bidders for
shall be borne by the Supplier.
equivalent value in convertible currency.

Addendum No.
Kindly may note that a foreign steel mill can only start production of steel after obtaining
1 Lot no. 1 Supply of 2500 MT, UIC 60, IRS-T-12-2009 1080
S No. 4 financial securitization i.e. opening of confirmed letter of credit. Delivery of rails to be
Dated: grade Head Hardened Rails: Kindly Refer S.No. 4 of Addendum No. 1 Dated 24.08.2016
Section VI. linked with establishment of letter of credit only and not with letter of acceptance. Kindly
2 2 24.08.2016 SR-2
Schedule of accept as mentioned here under:
LOC plus 5 months or LOA plus 6 months whichever is earlier. Tender Conditions Prevail.
Requirements
1. Lot no. 1 - 2500 MT - LOC + 06 Months

Inspection and test shall be as per the inspection & test plans in
Section VIII. The inspections and tests shall be as per the inspection and test If any point or information of purchaser’s test plan contradicts or pertains to be accordance with IRS-T-12-2009 with latest correction sheet.
3 3 Particular PC-5 GC 24.1 plan forming part of the tender document (Part-II) and as per ambiguous in accordance to IRS-T-12 2009 then IRS-T-12 2009 along all correction slips
Conditions manufacturer’s QAP approved by the Purchaser. shall supersede purchaser’s test plan. Tender conditions prevail.

Section VI.
The rails shall be Class ’A’ rails as per IRS-T-12-2009 Class A in the IRS describes only tolerances for UIC 60 Rail which is not exactly same as Please refer to Sr. No. 3 of Addendum No. 1 dt. 24.08.2016.
4 2 Schedule of SR-3 Clause - 3
classification. 60E1 as per EN. Class A as per EN for 60E1 Rails shall be approved. Tender Conditions Prevail.
Requirements

Section VI.
Proposal for No. of change over blooms will be in terms of In case of continuous casting process this clause should not be applicable, other Indian In case of continuous casting process this clause is not be
5 2 Schedule of SR-4 Clause - 1
Clause 4.3 of IRS-T-12-2009. Metros also imply same principal i.e. DMRC, LMRC etc. applicable. For other process Tender Conditions Prevail.
Requirements

Before the inspection of the 1st Lot the inspection agency shall check and confirm the
drawings of the templates and gauges. Within the inspection of 1st Lot at manufacturer’s Details of any other equivalent method may be furnished in the
Section VI. Check of Rail section profile-Before commencement of
Test Plan Sl. plant Inspection agency shall inspect two sets of the templates and gauges prepared technical submission. Any deviation may be indicated in
6 2 Schedule of SR-8 regular rolling of rails
No. 2 from standard steel and shall affix their stamp on the surface of template and gauges as deviation satatement
Requirements
a mark of acceptance. One set of the confirmed templates and gauges shall remain at Tender Conditions prevail.
the site and one set may be sent to the client if it’s needed.

Section VI. Addendum and corrigendum slip no. 3 of IRS T-12-2009 confirms that Cr (0.3% max.) &
Test Plan Sl. Para No.2 of A&C Slip No. 3 dated 27.6.2012 to IRS-T12-2009
7 2 Schedule of SR-9 Chemical content in each cast V (0.01% max.) are also be included in chemical composition of 1080 HH rails. These are
No. 6 is applicable to Purchaser's Test Plan.
Requirements missing in purchaser’s test plan, kindly confirm on the same.

Purchaser’s test plan has actual weight of UIC 60 rails and not of 60E1 rails, actual
Section VI. Actual weight weight for 60E1 rail is 60.21 kg/m
Test Plan Sl.
8 2 Schedule of SR-14 60.34kg/m -0.5%, +1.5% -0.5%, +1.5% Tolerances (-0.5%, +1.5%) Also Applicable for UIC 60E1.
No. 10
Requirements Kindly update the same ?

Sulphur print test

Section VI. Addendum and corrigendum slip no. 3 of IRS T-12-2009 confirms that the macrostructure
Test Plan Sl. The prints obtained must not reveal macrographic defects more Addendum & Corrigendum Slip No. 3 of IRS-T12-2009 is also
9 2 Schedule of SR-15 for an inline air head hardening process is also be included for 1080 HH rails. This is
No. 11-b marked than those given in Appendix VIII. apllicable to Purchaser's Test Plan.
Requirements missing in purchaser’s test plan, kindly confirm on the same.
 Part
S.No Section Page Cluase/Item Bid Condition (Relevant Portion) Tenderer's Query MEGA's Response/Clarifications
No.

Macrostructure test for hardened layer

Section VI. In case of continuous casting the Macrostructure test should be deleted as the hardness
Test Plan Sl. Macro structure of heat affected zone shall conform to Figure-7
10 2 Schedule of SR-15 distribution test shall show the hardness at requisite points. In case of continuous casting This can be shown in the deviation statement.
No. 11-d of IRS-T-12-2009 with all amendments.
Requirements the macrostructure of such rails will not show any distinct layers.

Section VI. Marking Brand marking is permissible at least once every 4 m as per Addendum and Corrigendum
Test Plan Sl. Brand marking is to be as in para No. 3 of A&C slip 3 dated
11 2 Schedule of SR-17 Brand Marks - Hot branding while rolling – Every 3 m No. 3 released by RDSO in reference to IRS-T-12 2009. Kindly approve the same in
No. 13-a 27.6.2012 to IRS-T12-2009 and Appendix IV shall be followed.
Requirements purchaser’s test plan.

Cold Punching – After Rolling - To include inspecting agency ID

Section VI. and Group ID, shift no in which product inspected and date of Details of any other method other than cold punching may be
Test Plan Sl.
12 2 Schedule of SR-18 inspection. To avoid damage to HH rails instead of cold Kindly allow to use water proof sticker in the manner that is accepted by DMRC for its orde furnished in the technical submission.
No. 18-i
Requirements punching any other method of marking can be adopted with the Tender Conditions prevail.
prior approval of purchaser.

Colour Code for 18M Rails is not specified in IRS-T-12 2009, we propose the method as
All rails in 1080HH steel grade shall be in colour paint on both
mentioned henceforth that has been also accepted by DMRC:
sides of web surface for a distance of 500 mm from each end.
Section VI.
Test Plan Sl. Color Code - After rolling, by color painting - As per color code Colour code as per Appendix IV of IRS-T12-2009 for rails having
13 2 Schedule of SR-18 All rails in 1080HH steel grade shall be in colour paint on both sides of web surface for a
No. 18-ii given in Appendix IV of IRS-T-12-2009 with all amendments 13 /12/11/10 m length shall be adopted for rails having 18
Requirements distance of 500 mm from each end. Colour code as per Appendix IV for rails having 13
/17/16/15 m length.
/12/11 m length shall be adopted for rails having 18 /17/15 m length.

Section VI. Rail loading and stacking – Method of lifting using multi point
Test Plan Sl. Firm compacted ground will be made available. All other
14 2 Schedule of SR-18 clam locks holding rail head and stacking on well drained level Well drained stacking area shall be made available by the purchaser.
No. 14 arrangements to be made by the supplier.
Requirements stacking area.

Kindly specify the details of documents to be furnished by the supplier as few documents
Details of Shipping and other Documents to be furnished by the
mentioned under clause no. GC 11.1 seems to be insignificant i.e. an airway bill, a Out of the documents stated in the Tender whatever documents
Supplier Are Invoice, negotiable bill of lading, a non-negotiable
Section VIII. railway consignment note, a road consignment note etc. for shipping are applicable, supplier is required to furnish the
sea way bill, an airway bill, a railway consignment note, a road
15 3 Particular PC-2 GC 11.1 same.
consignment note, insurance certificate, Manufacturer’s or
Conditions Manufacturers or Supplier’s warranty certificate: Manufacturer’s warranty is covered by Manufacturers or Supplier’s warranty certificate is required with
Supplier’s warranty certificate, inspection certificate issued by
the contract document; it must not require a separate certificate with every lot. every lot. Tender Conditions Prevail.
nominated inspection agency, Supplier’s factory shipping details.

The place of arbitration shall be a neutral location determined in

Section VII.
Settlement of accordance with the applicable rules of arbitration; and the
16 3 General GC-7 Kindly advise the place of arbitration in accordance to the condition of this contract? Tender Conditions Prevail.
Disputes arbitration shall be conducted in the language for
Conditions
communications defined in GC Sub-Clause 5.1.

Details of Taxes, Duties, Levies Etc.

taxes/duties/l • Excise Duty Since the contract pertains to supply of imported material by a foreign entity, under such With refer to taxes, duties, levies the bidder have to assesed the
Section IV evies, etc. • VAT / CST circumstances none of the taxes except custom duty must be applicable, furthermore port applicable taxes and furnish the details.
17 1 BF-47
Bidding Forms included in • Works Contract (WCT) of discharge being Mundra falls in the same state hence Entry tax will also be not
the fixed lump • Service Tax applicable, Kindly clarify on this understanding ? Tender Conditions Prevail.
sum price • Octroi / Entry Tax

There shall be no TDS deduction under this contract as this is a supply contract that shall TDS as per extant provisions of Income Tax Act will be deducted
18 TDS (Tax deducted at source)
be undertaken by a foreign company. Kindly Confirm ? for foreign supplier also.

Section VII.
If any new taxes and duties are levied / enforced on the goods to be supplied under this
19 3 General GC-9 Clause 15 Taxes and Duties Tender Conditions Prevail.
contract from the date of bid submission then the same shall be paid by the purchaser.
Conditions
 Part
S.No Section Page Cluase/Item Bid Condition (Relevant Portion) Tenderer's Query MEGA's Response/Clarifications
No.

Since we can start production only after our receipt of Letter of Credit, it should be Date
of establishment of Letter of Credit (i/o Letter of Acceptance) and delivery timing should
Section IV. Commencement date of the Works: Date of issue of Letter of
20 1 BF-32 S.No. 3 be counted down from it in accordance with Section VI Schedule of Requirements. Tender Conditions Prevail.
Bidding Forms Acceptance
Or, please add the condition that at least Letter of Credit shall be opened within 1 month
after Letter of Acceptance.

- Delivery time at DDP Ahmedabad:

KD1 : "LOC+5 months or LOA+6 months whichever is earlier"
Since we need 5 months for our lead time at least and we can start production only after
our receipt of satisfactory L/C, we would like to propose to amend as following 1) or 2).
Section IV.
1) LOC+5 months
Bidding Form
2) LOC+5 months or LOA+6 months whichever is earlier (in any case LOC shall be
Section VI.
opened within 1 month after LOA) Kindly Refer S.No. 4 of Addendum No. 1 Dated 24.08.2016
Schedule of BF-34
21 1&2 S.No 4 KD1
RequirementsA SR-2
- Further, as for L/C opening, we request you to kindly open Letter of Credit for entire Tender Conditions Prevail.
DDENDUM NO.
quantity of 10,600mt (i.e. 4 lots) together. In case if L/C's are opened seperately for each
1, DATED:
lot, we request you to kindly open L/C atleast 5 months in advance for each lot since lot
24.08.2016
no 2 & 4 there is a gap of only 3 months from earlier lot. We need minimum of 5 months
of lead time to deliver material to your stores in Ahmedabad. We can confirm delivery of
entire lot within 17 months however L/C opening timing is important for us to deliver each
lot timely hence please consider L/C opening time of each lot before 5 months.

Although our unit contract price shall be fixed and no change after contract, actual qtty to
be supplied shall be varied within the range of Delivery Allowance (i.e. +1%/-NILL).
Section IV. Appendix - A -
22 1 BF-46 Also, there is the chance MEGA may increase the qtty by 25% of sheduled qtty. Tender Conditions Prevail.
Bidding Forms Tender Total
Therefore, we understand it's not possible for bidder to mention "The fixed Lump Sum
Price" at the time of bidding stage since final qtty may be changed later.

Please note we request you to delete this point, since we are foreign bidders and our
responsibility is to bring rails to discharging port and facilitating to deliver material at your
stores by using third party logistics company, hence no physical sales of goods is
happening after material reaches in India. Further we request MEGA to pay custom
duties directly because only MEGA as project onwer can enjoy concessional custom
duty. Shipping docs also mention MEGA as consignee and we'll file Bill of Entry in the
Section IV. DETAILS OF TAXES/DUTIES/LEVIES, ETC INCLUDED IN THE
23 1 BF-47 name of MEGA. So we request you to kindly delete this form as it is not required as per Tender Conditions Prevail.
Bidding Forms FIXED LUMPSUM PRICE
the requirement of the tender. There will not be any tax applicable since the sale is not
happening in India.
Service Tax is applicable for Inland operation hence we'll consider while preparing our
offer.
Hence decleration is not required for this tender and please give relaxation for this
clause.

We noted, MEGA confirmed to pay Custom Duty to Port authority directly.

Section IV. Price scheudle: Goods supplied from outside the Purchaser's Kindly Refer S.No. 4 of Clarification Set-1 Dated 24.08.2016.
24 1 BF-10 Supplier/contract will arrange custom duty challan and submit to MEGA for arranging duty
Bidding Forms country Tender Conditions Prevail.
in favor of custom authorities.

Please confirm the full address of delivery and that all materials
25
shall be delivered to only one location in ahmedabad
We understand there are 3 locations being nominated by MEGA as stores where the
supplier has to deliver the material. We would like to know the address of those locations,
Kindly refer S.No. 19 of Clarification Set- 1 Dated 24.08.2016.
further we would also like to suggest, lot wise location will be provided, means say for
example entire first lot to be delivered to 1 location rather than all 3 locations, next or
Tender Conditions Prevail.
subsequent lot can be delivered to next location or similar location based upon
instructions from MEGA.
 Part
S.No Section Page Cluase/Item Bid Condition (Relevant Portion) Tenderer's Query MEGA's Response/Clarifications
No.

In regard to service tax in terms of GOI notification no. 25/2012-service tax act (Dated Exemption on Metro Project for Service tax has been withdrawn
20.06.2012) under section 93 (1) read with section 66 (B) of the Finance act, by way of from 01.03.2016 and wherever service tax is applicalble, the
26
erection, construction, commisioning or installation of original works pertaining to railways same is to be bourne by supplier.
including monorail or metro are exempted from the whole of service tax leviable thereon.
Tender condition prevails.

Kindly do not restrict the issuing city of BG, since bidder are from outside the state of
Form of Bid Security (Bank Guarantee)
Section IV Gujrat.
Furthermore, we understand that, according to the Beneficiary’s
Biding Forms
27 1 BF-28 conditions, Bids must be supported by a bid guarantee payable Kidly refer S.No. 13 of Clarification Set 1 Dated 24.08.2016
“Furthermore, we understand that, according to the Beneficiary’s conditions, Bids must be
in Ahmedabad/Gandhinagar #
supported by a bid guarantee payable in Ahmedabad/Gandhinagar or New Delhi.”

For supply contracts completed as a prime supplier (single entity

or JV member) (i) between 1st January 2011 and the Bid
submission deadline, a minimum supply capacity of 50,000 Since the procurement of rails is of 60E1 that happens to be a profile from EN 13674,
Metric Tonnes of UIC or equivalent standard rails. The above Part-1, it is very eminent to consider R 350 HT grade in addition to 1080 grade.
shall include UIC 60/60E1 rails also, manufactured to EN 13674,
Section III-
Part-1 and/or IRS-T-12-2009 or equivalent, to a quantity of at “For supply contracts completed as a prime supplier (single entity or JV member) (i)
Evaluation and
least 25,000 Metric Tonnes, of which at least 20,000 Metric between 1st January 2011 and the Bid submission deadline, a minimum supply capacity
Qualification 2.4.2 Specific
28 1 EQC-7 Tonnes should have been of 1080 Grade HH Rails. Out of the of 50,000 Metric Tonnes of UIC or equivalent standard rails. The above shall include UIC Kindly refer S.No. 3 of Addendum No. 1 Dated 24.08.2016
Criteria Experience
total production, at least 20,000 Metric Tonnes should have 60/60E1 rails also, manufactured to EN 13674, Part-1 and/or IRS-T-12-2009 or
been supplied to countries outside the country of production. In equivalent, to a quantity of at least 25,000 Metric Tonnes, of which at least 20,000 Metric
case the experience for the manufacture of UIC60/60E1 rails is Tonnes should have been of HH rails from the steel grade 1080 HH, R 350 HT or a
to specification other than EN 13674, Part-1 and/or IRS-T-12- higher hardness.”
2009, then a copy of the concerned specification (with
translation in English language, in case the specification is in a
language other

It is hereby requested as follows:

Sub Contractor with authorisation of main contractor shall be allowed to transport / deliver
material manufactured by them on their invoice to the purchaser?
ITB 14.8 (b) Direct payment to the sub contractor with proper authorization
29 1 Section II. Bid BDS-6
(ii) Sub Contractor with authorisation of main contractor shall be allowed to receive from main contractor will be consider for the INR payment.
Data Sheet
payments directly from purchaser on behalf of main contractor against its invoice
pertaining to transportation/ delivery of rails?

Place of destination: MEGA Stores at Ahmedabad

The material is to be delivered duly stacked in MEGA stores at
Ahmedabad. All cost of loading, unloading, transportation and
insurance is to be borne by the Supplier. The custom duty as
applicable will be reimbursed to the supplier as per documentary
After submission of all relevant documents in proper format
proof. MEGA will facilitate recommendation / sponsoring letter
along with custom duty challan payment to the custom authority
ITB 14.8 (b) from the Government of Gujarat for Project import registration for In event of any demurrage due to delay in payment of custom duty MEGA will pay the
30 1 Section II. Bid BDS-6 will be done by MEGA. on the part of MEGA within 3 working
(ii) which the Supplier shall submit request letter and details at least same from its resources.
Data Sheet days. If delay is on account of supplier, the same shall be borne
one month in advance. Port handling charges as per
by the supplier.
documentary proof (paid to Port authority only) will be
reimbursed to Supplier in the same currency as paid to port
authority. Stamp duty charges if any shall be borne by the
Supplier.
 Part
S.No Section Page Cluase/Item Bid Condition (Relevant Portion) Tenderer's Query MEGA's Response/Clarifications
No.

The Bidder is “required” to be represented by an agent in the Successful bidder is required to fullfill all the contractual
Under this supply contract there is no scope of maintenance, repair and spare parts-
31 1 Section II. Bid BDS-6 ITB 19.1 (b) country equipped and able to carry out the Supplier’s obligations, employer's requirements.
stocking obligations, kindly delete this clause.
Data Sheet maintenance, repair and spare parts-stocking obligations Tender Conditions Prevail.

For international suppliers it is very important to cover full invoice amount through Letter
Payment for the Goods and Related Services supplied from of Credit, kindly accept the condition as mentioned henceforth:
outside Purchaser’s Country:
Particular
On Acceptance: Ten (10) percent of the Contract Price shall be “On Acceptance: Ten percent of each consignment shall be paid through an irrevocable
Conditions (PC)
32 3 PC-3 GC 14.1 paid within forty-five (45) days after receipt of invoice and a Letter of Credit with submission of acceptance certificate signed by the Purchaser and Tender Conditions Prevail.
certificate from the Purchaser declaring that the Goods and issued no later than 7 days following the delivery date of the rails to the final destination”
Related Services have been delivered and accepted.
The aforementioned condition is also well accepted by DMRC for its contracts.

Section IV
Form ACK
Bidding Forms Kindly provide the latest copy of:
Acknowledgement of Compliance with Guidelines for
33 1 BF-36 Form ACK “Guidelines For Procurement Under Japanese ODA Loans” Bidder can refer/download the guidelines from the internet
Procurement under Japanese ODA Loans

Section-VI
Falling Weight Test- Supplier uses a falling weight of 1.000 kg from a height of Details to be confirmed by biddeer through technical bid with the
34 2 Schedule of
9.4m=leads to same energy as required in IRS-T12-2009 comparision to the provision of IRS-T12-2009 specification.
Requirements