Clarifications on the Queries of PRE-BID of Tender # CIL/C2D/Cart Explo & Accy/ /293 dated

Transcription

1 Clarifications on the Queries of PRE-BID of Tender # CIL/C2D/Cart Explo & Accy/ /293 dated In consideration of the merits of the suggestions / representations received, before, during and after the Pre-NIT meeting held on 28/11/2016, the NIT as referred above has been prepared and uploaded. Pre-Bid conference was held on Sixteen persons representing different explosive manufacturers attended. During the conference, a power-point presentation of various terms and conditions of the NIT as well as e-procurement process was given, explaining the process of bidding to all present. The persons representing the attending firms have been given opportunity to interact and get their doubts, if any cleared. The issues on which the clarifications were sought by the firms in writing are detailed below along with the responses from CIL. 1

2 Sl. NIT Clause No. No. 1 Clause 4 of IFB NIT Terms Prospective Bidder s Queries CIL s Clarification / Response Details of tender.. Due date of Opening of Tenders At hours (IST) Due date and time for Start of Reverse Auction - Will start within 2 hours of opening of tender It is not clear whether the qualifying criteria as per Clause 20 of the Commercial Bid will be applied before the price bid opening or after the price bidding is done. If done after price bidding then this would vitiate the whole tender pricing and a party who has participated in the reverse auction, if disqualified due to not passing Group I and Group II (Clause 20.2 and 20.3) of Commercial Bid, then in fairness Rebidding should be resorted to as such bids could vitiate the fair bidding process. As Random Testing done during the period in the NIT, has been done at the Mines in presence of the representative of the RC Holders, the RC Holder obviously know the results of the same. Similarly delivery performance for the period as specified in the tender, is already available with the RC Holders... As per invitation for Bids (IFB) clause no. 4 (13) the reverse auction is to commence within 2 hours of opening of the tender. Kindly clarify when will techno commercial evaluation take place to ascertain the eligibility of the bidders. Accordingly, the RC Holders should consider their eligibility before bidding for the items. In the event of default on this account, the bids attract penal provisions as mentioned in the tender, will be applicable. Subject to the above, evaluation of the offers will be carried out as per procedure laid down in the tender clauses 21 and 23 of commercial section of the NIT. 2

3 2 Clause 12 of Comm. Sec. 12.Price fall Clause 12.1 Price fall clause: As per Pre Contract Integrity Pact clause No. 7 which reads as under ;. The BIDDER undertakes that it has not supplied /is not supplying similar product/systems or subsystems at a price lower than that offered in the present bid in respect of any other Ministry/Department of the Government of India or PSU and if it is found at any stage that similar product/systems or sub systems was supplied by the BIDDER to any other Ministry/Department of the Government of India or a PSU at a lower price, then that very price, with due allowance for elapsed time, will be applicable to the present case and the difference in the cost would be refunded by the BIDDER to the BUYER, if the contract has already been concluded In case the price of a product is reduced for any supplier due to invocation of price fall clause or any other reason, the same lower price shall also be applicable for the other suppliers who are having parallel RCs against this tender. If any supplier does not accept the lower price, CIL shall have the right to delete the item from the scope of RC of such firm and procure explosives/ accessories from other existing supplier / Reserve RC holders Clause 12.1 of Fall Clause states inter alia that of at any stage it is found the bidder has supplied similar product/system to any other Ministry / Department or PSU at lower price, then that very price, with due allowance for elapsed time will be applicable to present case. Please clarify with due allowance for elapsed time as Fall Clause cannot be applied to whole duration of contract. 2. Fall Clause is applied on the price of the product. When you are giving a price on FOR basis it includes Basic price + Freight, handling etc. Freight components is large and varies from customer to customer based on distance from the factory. Please clarify how price will be considered for applying Fall Clause. Elapsed time is the time lapse between the two prices under comparison. Since the price RCs if any concluded, are governed by price variation, lower prices applicable will accordingly be for concurrent periods. The basis of comparison will be landed cost inclusive all charges except taxes and duties. Clause 12.2 is not justified as it penalizes a particular supplier for action of other suppliers. Given that the introduction of such clause by CIL on previous occasion have been challenged by some explosive manufacturers and the matter is still sub-judice, we call upon you to delete this clause. Since all parallel RCs against a particular tender, are to be operated on single price, the requested change does not merit consideration. 3

4 3 Clause 14 of Tech. Sec. 14. POWDER FACTOR The mine wise bench mark powder factors, separately for Coal and OB in OC as well as for Coal in UG (Development / Depillaring district) mines for departmental as well as outsourcing patches for following categories of operations has been indicated in NIT for acceptance by the biddera). PF for OC mines i). PF for coal ii). PF for OB in shovel-dumper bench iii). PF for OB in dragline bench b). PF for UG mines i). PF for coal in development district. ii). PF for coal in depillaring district Benchmark powder factor for the first financial year (Annexure-9) shall be annual average of the achieved powder factor for year Bench mark Powder factor for the 2 nd financial year shall be annual average of the achieved Powder factor for year PF for 2nd year of proposed RC shall be circulated by subsidiary companies directly to the suppliers with the approval of CMD of subsidiary company The mine wise achieved powder factors shall be declared by the subsidiaries every month. The method of calculating the achieved powder factor shall be by the same method by which benchmark powder factors are calculated Bidder shall confirm that explosives supplied by them shall achieve the mine-wise benchmark powder factors indicated in NIT during the period of the contract. Failure to achieve the benchmark powder factors shall attract penalty as detailed in Performance and Penalty clause of NIT In case of new underground mines, new seam of existing underground mine or change in method of work i.e... At Clause 14.2 of the Technical Section states Bench mark Powder Factor for the first financial year shall be annual average of the achieved powder factor for the year Bench mark Powder Factor for the second financial year shall be the average of the powder factor for the year At point 16.5, payment shall continue to be made as per RC terms and provisional deduction of any on account of non-achievement of powder factor shall be made on quarterly basis and final assessment will be made on yearly basis including extension/short closure on average powder factor basis. Please clarify as some of the subsidiaries are evaluating powder factor on financial year i.e. April to March basis and not on yearly basis on the contracted period. Subsidiaries may be informed that evaluation should be done on contracted yearly basis as the second year powder factor will change on conclusion of the first year of the contract... Clause 14.6 Mine wise benchmark PFs may be reviewed by the CMD of the Subsidiary Companies in consultation with CMPDIL on yearly basis, during the tenure of the contract, if the deduction at such mines exceeds 20% of the price of explosives. The revised PF, if any, shall apply during the tenure of the contract. As per clause 16.2, penalty would be 0.3% of the price of explosives for every percentage decrease in powder factor. Accordingly, 20% deduction of price refers to 66% drop is achieved powder factor. Therefore, as per Evaluation of powder factor will be on financial year basis as given in the NIT which will be applicable for all relevant clauses of the NIT and will accordingly be taken into consideration while issuing the RCs. For every percentage decrease in powder factor of Coal/OB compared to bench mark powder factor, same percentage deduction in price of explosives shall be made as provided for, in Performance and Penalty clause 16.1 of commercial section of NIT. Clause 16.2 commercial section of NIT also stipulate for bonus and penalty for increase/decrease in powder factor beyond ranges as specified therein. For increase in powder factor beyond 105%, 0.3% will be applicable for the percentage increase calculated from 100%. Similarly, for decrease in powder factor below 95%, 0.3% will be applicable for the 4

5 development/depillaring in the same mine and in case of new opencast mines i.e. new projects/patches including outsourcing and hired HEMM patches, which may come up during the tenure of the contract and for which benchmark powder factor is not mentioned in Annexure-9, the subsidiary shall formulate the powder factor as follows: a)..bench Mark PF shall be fixed in notional manner through a committee consisting of representatives from Sub Co. and CMPDIL. b). For second year, the Average PF achieved in previous year shall be fixed as Bench Mark PF. All Bench Mark Powder Factor determined above should have approval of CMD of the subsidiary company. Only one PF shall be applicable during a financial year of contract for any OC mine [separate for Coal & OB (Departmental / Outsourcing patches)] irrespective of different types of explosives Mine wise benchmark PFs may be reviewed by the CMD of the Subsidiary Companies in consultation with CMPDIL on yearly basis, during the tenure of the contract, if the deduction at such mines exceeds 20% of the price of explosives. The revised PF, if any, shall apply during the tenure of the contract For new powder factors as well as review of existing powder factor cases explained above, CMD of the subsidiary company is empowered to issue the necessary amendment to the RCs to incorporate the new/revised powder factors without referring the matter to CIL Supply of accessories shall be exempted from powder factor clause. 14.6, PF may be reviewed if PF drop is more than 66%. It needs to be amended as 66% drop in PF is too high to get it reviewed. The clause may be amended as per following :- Mine wise benchmark PFs may be reviewed by the CMD of the Subsidiary Companies in consultation with CMPDIL on yearly basis, during the tenure of the contract, if the drop of powder factor at such mines exceeds 20% of bench mark powder factor. The revised PF, if any, shall apply during the tenure of the contract. percentage decrease calculated from 100%. Accordingly, for a 20% decrease in powder factor compared to bench mark powder factor, penalty to be charged will be (0.3% of price of explosives)x(20) which works out to 6% price of the explosives as per clause 16.2 of commercial section of NIT. 5

6 4 Clause 9 of Tech Sec. 9.. Random test 9.1..The consignee subsidiary company shall conduct quarterly random test of the explosives & accessories supplied by the supplier through CMPDI. Apart from quarterly random tests by CMPDI, CIL reserves the right to test explosives / accessories by consignee subsidiary company against the running contracts with an ultimate aim of achieving batch wise testing of explosive / accessories The limits of technical parameters for random test / any other tests are given in the NIT under a separate annexure titled Random test and Delivery performance and shall also be mentioned in the RC The testing charges shall be borne by CIL/ Subsidiaries for carrying out the testing The random test shall be conducted every quarter in each subsidiary. The authorized representative from CMPDIL shall draw the required number of samples randomly in each quarter from any magazine. The samples shall be drawn and tested on the same day at mine in presence of representatives of subsidiary and the supplier The Sample shall be treated as FAIL in random test / any other tests if it does not meet any of the criterion specified under acceptable limit as in Annexure-5 and penalty of 1% of the value (without taxes and duties) of explosives / accessories supplied in that quarter limiting to the frequency of the tests (i.e., deduction for the explosives / accessories supplied for a week if frequency of tests is weekly and so on)... Clause 9.5 under Technical Section states that sample will be treated as fail in random test or any other if it does not meet any of the criteria specified under acceptable limits. 1% of the value of the explosives / accessories shall be debited for the quarter. At Clause 9.8, the sample of samples per quantity as also specified. If 10 samples are taken and only one sample fails, you should not penalize the supplier, in such situation there could be error in doing the testing when 9 other samples have passed. It is suggested that statistical mean should be arrived at testing results for purpose of applying penalties as testing is not done under controlled conditions and could be subject to errors as well. At point no. 9.5 clarification on the frequency of testing and the penalty is needed.. For no. of samples taken in a quarter, statistical mean should be taken to derive the result and accordingly the penalty should be imposed. Moreover, still have to receive the SOP for random testing procedures, we request you to kindly share the same and develop a mutual understanding and agreement for the same. Since random testing is meant to decide efficacy of the product in terms of the RC specifications, determination by means of statistical mean, is not acceptable as no sample should fail in any testing. SOP of random testing has been uploaded in CIL website viz under section Tenders However, there will be no double penalty for testing of same product of same batch tested by subsidiary company or CMPDI. Same batch will not be tested more than once. 6

7 9.6.. If any bidder fails in random testing thrice in a year in any specific Subsidiary of CIL, they shall be debarred for next tender for that particular item In case of failure in random test/any other test, over and above the penalty of 1%, the allocation of that item given to the supplier may be withdrawn / suspended by the subsidiary co. for a maximum period of 15 days during the succeeding quarter Sample quantity of random testing a. Permitted Explosives and Large Dia Explosives: One sample to be taken for the first 200 tonnes of Subsidiary allocation on a particular supplier on an annual basis and subsequently for every 300 tonnes of Subsidiary allocation, one additional sample is taken. For example, a supplier whose annual allocation on permitted/ld explosives is 1600 tonnes, a total of six (1+1400/300= 6) samples is suggested. b. Detonating Fuse: One (1) sample for every one lakh meters of detonating fuse allocation given for a subsidiary. c. Detonators (CED, CDD): One (1) sample for every 2.5 lakh number of allocation given for a subsidiary. d. Cast Booster: The number of samples to be tested should not be less than 2 samples per quarter for a particular supplier for a subsidiary. e. Nonel (Non Electric Initiation System / Detonator ): One (1) sample for every 1.0 lakh mtr. of allocation is to be tested for a particular supplier for a subsidiary. For example, if a supplier, whose annual allocation of Nonel is 10 lakh mtr, a total of (10 / 1) = 10 nos. of sample is required to be tested for a subsidiary. 7

8 f. Cord Relay / MS Connector: One (1) sample for every 2.5 lakh nos. of allocation for a particular supplier is to be tested. For example, if a supplier, whose annual allocation of Cord Relay / MS Connector is 10 lakh nos., a total of (10 / 2.5) = 4 Nos. of sample are required to be tested for a subsidiary. g.electronic Detonator: One (1) sample for every 2.0 Lakh numbers of allocation for a subsidiary irrespective of quarter Irrespective of above norms, random testing of at least two samples of each item in each subsidiary is to be done on quarterly basis CMPDIL will issue Standard Operating Procedure for random testing which will be uniformly applicable in all CIL subsidiaries and NEC. The same will also be made available in the CIL website viz. 8

9 5 Clause 4 of Comm. Sec Price Variation Clause : The RC price for cartridge explosives i.e. LD and permitted explosives shall be revised on quarterly basis based on the price variation formula indicated below,.. At Point no. 4.1., the base date needs to be qualified. Base date will be as indicated in the NIT clause 4.3 of commercial section. Pr = Po ( x Clr/Clo x ANr/ANo x HSDr/HSDo), where Pr = Revised price as on the date of price revision Po = Base price as on base date Clr = All India Consumer Price Index (AICPI) for industrial workers [All India(2)] on a date three(3) months prior to the date of price revision. Clo =All India Consumer Price Index for industrial workers [All India(2)] on a date three(3) months prior to the base date, as available in website ANr = Price of Ammonium Nitrate (AN) on the date of price revision. ANo = Price of Ammonium Nitrate (AN) on base date The price of AN shall be the ex-works AN (100% Melt) price of RCF (Rs/MT) valid on the particular dates (base date & revision date). HSDr = Revised price of HSD of IOCL, Retail outlet price at Kolkata, as available in website as on date of price revision. HSDo = Original price of HSD of IOCL, Retail outlet price at Kolkata as on base date, as available in website The RC price of accessories i.e. items other than LD and Permitted explosive shall be revised on yearly basis based on the price variation formula indicated below. 9

10 Pr = Po ( x Clr/Clo), where Pr, Po, Clr & Clo have meanings as above The base price for any item shall be the RC price to be finalized against this tender and the base date shall be date of the reverse auction, All indices shall be measured from the base date except the AICPI for industrial workers (Clr/Clo) which shall be measured from a date three(3) months prior to the base date The first price revision for explosives shall take place on the 1 st day of a month following completion of 3 months from the reverse auction date. Subsequent revision shall take place exactly after every 3 months The first price revision for accessories shall take place on the 1 st day of a month following completion of 12 months from the reverse auction date. Subsequent revision shall take place exactly after every 12 months The price revision for both explosives and accessories shall not have any ceiling The revised price/indices of each quarter shall be the base price/indices for next quarterly revision of explosives. For accessories, the revised price/indices of each year shall be the base price/indices for next yearly revision RC prices w. e. f. start date of RC till the first revision and also in between subsequent revisions shall remain firm. 10

11 6 Clause 16 of Comm. Sec. Performance and Penalty The mine-wise achievement of powder factor should not be less than the benchmark powder factors specified in the NIT. The method of calculating the achieved powder factor shall be by the same method by which benchmark powder factors are calculated. For every percentage decrease in powder factor of Coal/OB compared to the benchmark powder factors as provided in the NIT, same percentage deduction of the price (without taxes and duties) of explosives shall be made In case the achieved powder factor is above 105% of the benchmark powder factor, then Bonus may be 0.3% (zero point three percent) of the price of explosives (without taxes & duties) for every percentage increase in powder factor over 100% of the benchmark. Thus for achievement of powder factor between 100% to 105% of the benchmark, there will be no bonus. In case the achieved powder factor is below 95% of the benchmark powder factor, then penalty may be 0.3% (zero point three percent) of the price of explosives (without taxes & duties) for every percentage decrease in powder factor below 100% of the benchmark. Thus for achievement of powder factor between 100% to 95% of the benchmark, there will be no penalty In the event of failure of blast, the cost of explosives/accessories used in the blast and other incidental charges like drilling cost etc. will be recovered from the respective defaulting supplier(s). In case of blast failure, initially proportionate deduction (proportionate to value) will be made for both explosives and accessories. After investigating into the cause of failure as to which item (explosive or accessories) is responsible for the failure, final deduction will be made accordingly The bench mark Powder Factors mentioned in the NIT shall also apply in case of explosives supplied to contractors in. Clause 16.1 and 16.2 refers to different penalty for non achievement of benchmark powder factor. Clause 16.1 is like earlier RCs where deduction is equivalent to same percentage decrease in PF. Clause 16.2 is revised /new version where deduction in line with bonus calculations. Both cannot be part of NIT. Clause needs to be amended suitably. Amendment required. The last line in Clause needs to be deleted as the methodology of penalty and bonus dealt in Clause no In clause no , there was a typographical error in the last but one line i.e. 100% should be replaced by 95%. The clause may be amended as per following :. In case the achieved powder factor is below 95% of the benchmark powder factor, then penalty may be 0.3% (zero point three percent) of the price of explosives (without taxes & duties) for every percentage decrease in powder factor below 95% of the benchmark. Thus for achievement of powder factor between 100% to 95% of the benchmark, there will be no penalty. Clause states that there shall be penalty equal to 1% of shortfall deducted from the basic value, then states that these shall not be any penalty upto 95% of benchmark PF and below 95%, the penalty may be charges at 0.3% for every % decrease in PF. It seems for the same performance, double penalty is being charges based on tender Clause 16.1 and then again in Clause 16.2 Already explained as above, in the powder factor clause. The relevant NIT clause is same as that of earlier NITs except the explanatory note to same method for arriving at PF shall be applied for calculating penalty as well as bonus, has been incorporated to bring further clarity. Hence no change as requested for, is required. 11

12 outsourcing patches (wherever separate Powder Factors for outsourcing patches are not indicated), if the explosives purchased by CIL is used in such patches with the condition that only the net cost of explosives and accessories (after deduction on account of powder factor) is recovered from the outsourcing contractor The payment shall continue to be made as per RC terms and provisional deduction if any, on account of nonachievement of PF shall be made only on quarterly basis. However, the final assessment of Powder factor and reconciliation thereof shall be made on yearly basis including extension / shortclosure, on average powder factor basis. Bonus shall be paid in the same way as that of penalty Deduction due to non-achievement of powder factor shall be made from the price of explosives only and not from accessories prices. 7 Clause 6 of Comm. Sec. Delivery It would be mandatory for the RC holder to maintain 90% delivery performance to be evaluated on half yearly basis for all RC items at each of the consignee subsidiary co. The quarterly delivery performance shall be evaluated by each consignee sub co. separately on the basis of RE-11 issued and actual quantity supplied against the same, duly agreed by the vendors and shall be intimated to CIL.. The supplier should not be liable for any consequential drop in delivery performance because of non-performance of its obligations by CIL including payment within contractual period. All the subsidiaries will requested to observe all contractual obligations. 8 Clause 3 of Comm. Sec Offer validity: The offer of the bidders shall remain valid for 180 days from the date of opening of bid. However CIL reserves its right to ask the bidder to extend the validity period of the offer. The price variation is applicable quarterly for packaged explosives, in the similar scenario. The offer prices validity should also be limited to 90 days instead of 180 days as given in tender document. Price Variation clause will come into force after RC are issued. Hence no change needed. 12

13 9 Clause 15 of Comm. Sec. Taxes and Duties Excise Duty, Sales Tax / VAT and all other Govt. levies if any, shall be paid extra at actual as legally leviable Bidder shall furnish their CST registration number and VAT registration number (subsidiary-wise) in their offer. Increase in taxes and Duties because of quarterly price revisions, CIL should issue C form against the additional Taxes and Duties. Consignees / Paying Authorities will be requested to regulate issue of C forms as per Govt Procedures When deduction of taxes and duties are made on account of revision of prices, a Certificate is to be issued by the Paying Authority to the Supplier indicating the amount of taxes and duties which have been deducted from the subsequent bills of the suppliers. 10. No clause in NIT. In addition to the above, may we request you to consider including a standard clause on Exclusion of consequential loss anywhere in the Commercial Section Annexure -3 or General Terms and Conditions of Supply of Stores. We have reproduced one such standard clause which may be modified as you deem appropriate. Does not require any addition/modification to NIT on this ground. Exclusion of Consequential Loss Clause :- To the extent the law permits and notwithstanding any other terms of this contract/purchase order, each party excludes all liability whatsoever to the other party for indirect or consequential loss or damage of any kind, loss of business revenue, loss of profits, failure to realize expected profits or savings, overhead costs, loss of reputation and goodwill and commercial or economic loss of any kind in contract, tort(including negligence) under any statue or otherwise arising out or in any way connected with this Contract/Purchase Order. 13

14 Further, the participants were informed / requested for the following:- i) Demo bidding for the benefit of the prospective bidders to acclimatize to the bidding process is being organized on the NIC Demo portal on 27/02/2017. All concerned are requested to register themselves in the demo portal and participate. ii) The participants were informed that the Letter of Bid (LOB) and Pre-Contract Integrity Pact should be signed by the same person as per NIT terms. iii) All the participants were requested to submit their offers and upload all the requisite documents so as to avoid any shortfall documents thereafter. 14