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GAIL INDIA LTD.. INVITATION FOR BIDS (IFB) FOR CATHODIC PROTECTION SYSTEM WORKS FOR GAIL PETROCHEMICAL COMPLEX-II, PATA (U.P.) (BIDDING DOCUMENT NO. A096/T-205/10-11/RKS/19) (INTERNATIONAL COMPETITIVE BIDDING) 1.0 PROJECT DETAILS 1.1 GAIL (India) Limited [GAIL] proposed to implement Gas Cracking Unit (GCU), Polymer Unit (LLDPE/HDPE SWING UNIT), Butene-1 Unit, required revamp in C2/C3 Unit, Associated Utilities and offsites facilities for Petrochemical Complex-II at PATA in Uttar Pradesh. 1.2 GAIL has appointed Engineers India Limited (EIL) as their Consultant for implementation of the Project. EIL on behalf of GAIL, invites bids through e-tendering on International Competitive Bidding basis for CATHODIC PROTECTION SYSTEM WORKS for GAIL Petrochemical Complex-II, Pata, (U.P.) under single stage two e- envelopes system bidding from competent Agencies with sound technical and financial capabilities and meeting the Bid Evaluation Criteria as stated under para 4.0 below. 2.0 BRIEF SCOPE OF WORK AND SUPPLY: The work to be performed by the CP System contractor shall comprise of Soil resistivity survey, detailed engineering, supply, installation, testing, and commissioning of impressed current close distributed anode bed CP System for soil side corrosion prevention as per requirement of the specifications, for following Underground pipelines within process unit & off-sites and utility facilities of GAIL s Petrochemical Complex II, at Pata complex: All U/G carbon steel Cooling water, Fire water lines, Caustic, Quench water, Benzene lines whichever is available within GPU, GCU, LLDPE/ HDPE Processing unit & at off-sites and utility facilities. Close distributed long line MMO wire anode pre-packed with coke breeze at Anode manufacturer s factory and independent dedicated computerized central monitoring designed for CP System shall be considered for impressed current CP System for all UG Piping. 3.0 SALIENT FEATURES OF BIDDING DOCUMENT a) Bidding Document No. : A096/T-205/10-11/RKS/19 (Corresponding e-tender no. 8000003446) b) Bidding Document on : From 26.08.2011 to 29.09.2011. Website c) Earnest Money Deposit/ Bid Security : For Indian Bidders: ` 2,000,000/- (Indian Rupees Two Million Only). For Foreign Bidders: $ 44,000/- (US Dollar Forty Four Thousand only) OR ` 2,000,000/- (Indian Rupees Two Million Only).. IFB Page 1 of 7

d) Pre-Bid Conference : 1100 Hrs. IST on 09.09.2011 at Engineers India Limited, EI-Annexe Building, 1, Bhikaiji Cama Place, R.K. Puram, New Delhi-110066. e) Completion from Fax of Acceptance Indian / Foreign Bidders : 14 (Fourteen) months f) Last date of Receipt of Bidder's Queries for Pre-bid : 06.09.2011 g) Last Date and time of : 1400 Hrs. IST on 29.09.2011. submission of Bids h) Opening of Unpriced Bids : 1500 Hrs. IST on 29.09.2011. In presence of authorised representative of attending bidders. i) Bidding Document Fee (non-refundable) : For Indian Bidder: INR 46,000/-. For Foreign Bidder: US$1000 or INR 46,000/-. The offer sent without payment of requisite document fee will be ignored straight away. 3.1 Bids to be submitted on GAIL s E-Tendering website (https://etender.gail.co.in). Bidders shall submit their bids i.e. UN-PRICED Bid in Collaboration Folders of e-tendering system and Price Bid in SRM as attachment. Price Schedule Formats attached as an attachment in Bidding Document. Bidders to download the same and quote their prices strictly as per the format without altering the content of it. The bid will be submitted in two parts as follows: 3.1.1 PART-I (UN-PRICED Bid):- To be submitted on Collaboration Folders of e-tendering system. Unpriced bid must be complete with all technical details along with all other required documents including price schedule WITH PRICE BLANKED OUT. In addition, documents as mentioned under Clause 4.3 below shall also be submitted in physical form. 3.1.2 PART-II (PRICED Bid):- To be submitted as an SRM attachment. Price bid should contain only the prices, without any condition whatsoever. Bids complete in all respects should be submitted on or before last date and time of Bid submission. The Bids submitted online in GAIL s e-tendering system will only be considered for evaluation. Physical Bids sent through Fax / e-mail / Courier / Post will not be accepted. 4.0 BID EVALUATION CRITERIA (BEC) 4.1 TECHNICAL CRITERIA 4.1.1 The Bidder (of their own, without forming any consortium or joint venture company) should have completed and successfully commissioned at least one CP System project during the last 10 years consisting of soil resistivity survey, design, detailed engineering, supply, installation, testing & commissioning for impressed current cathodic protection system for buried cross country pipelines/flow lines handling hydrocarbon or Fire water / Cooling water piping / Underground vessels within hydrocarbon plant, having the following as minimum requirements in the single project: Supply and installation of close distributed anode bed CP System using long line continuously distributed MMO wire anode (with or without pre-packed with coke breeze IFB Page 2 of 7

at anode manufacturer s factory) for Minimum 2km length, with minimum impressed current CP Station 1 number. The period of 10 years shall be reckoned from the due date for submission of Bid. 4.1.2 The offers of the bidders who have failed to execute any project of GAIL/EIL during last 10 years or their work order is terminated during last 10 years, due to any reason, shall not be acceptable, even if they meet the Bidder Evaluation Criteria as mentioned vide clause 4.1.1 above. 4.2 FINANCIAL CRITERIA 4.2.1 TURNOVER The minimum annual turnover achieved by the bidder as per the audited financial results during any one of the three immediate preceding financial years shall be Rs. 51.5 Million or USD 1.12 Million. 4.2.2 NET WORTH Net Worth of the bidder should be positive as per the immediate preceding year s audited financial results. 4.2.3 WORKING CAPITAL The minimum working capital of the bidder as per immediate preceding year s audited financial results shall be Rs. 10.29 Million or USD 0.22 Million If the bidder s working capital is inadequate, the bidder shall supplement this with a letter issued by his Banker, having a net worth not less than Rs. 100 Crores/USD 22 million, confirming the availability of line of credit to meet the specified working capital required as above. 4.3 DOCUMENT SUBMISSION FOR BIDDER EVALUATION 4.3.1 PROVEN TRACK RECORD (PTR) The bidder shall furnish documentary evidence along with the technical bids to justify that they meet the BEC as mentioned above vide clause 4.1 & 4.2. For this purpose bidder shall include one chapter in their technical offer with heading Compliance to Technical BEC and in this chapter bidder should mention the page number and clause number of their Technical offer, where the following information are furnished in support of their meeting BEC: a) work order b) Completion certificate, c) Relevant pages of the design package duly approved and authenticated by Owner/End user/consultant, indicating documentary evidence in support of clause 4.1 mentioned above. This document shall be essentially required, in case the documentary evidence as per 4.3.1 (a) & (b) does not clearly mention the requirements as per clause 4.1. d) In case bidder furnish documentary evidence in support of clause 4.1 for any project executed in any foreign country, they shall forward the document duly approved and authenticated by Indian Embassy located at that foreign country where the project is executed. e) Self attested certificate from the bidder stating that they have not failed to execute any project of GAIL/EIL during last 10 years or their work order is not terminated due to any reason during last 10 years for any project of GAIL/EIL. The failure to furnish above documentary evidence in support of the BEC as mentioned vide clause 4.1, will render the bid to be summarily rejected. Therefore, the bidder shall IFB Page 3 of 7

furnish complete documentary evidence with the technical bid to justify that bidder meets the Technical Evaluation Criteria as given above. 4.3.2 The bidder shall furnish documentary evidence by way of copies of work order, completion certificate (as indicated in clause 4.3.1) and Balance Sheet or Audited Financial Statements including Profit & Loss Account etc. along with the Bid to establish his experience and track record meeting evaluation criteria. Bidders should ensure submission of complete information/ documentation in the first instance itself. Qualification may be completed based on the details so furnished without seeking any subsequent additional information. Subsequent to the submission of bid, bidders are not allowed to change the price or substance of the bid i.e. scope of work, specifications, delivery schedule, completion period etc. including modification of the bid to meet the BEC of the tender. 4.3.3 Bidder shall meet the Technical and Financial Evaluation criteria as stated above. Bidders shall furnish all the necessary documentary evidence along with the bid to establish the Evaluation criteria including the following: All supporting documents, pertaining to Bidder Evaluation Criteria submitted by the bidder shall be certified true copies, duly signed, dated and stamped by a Public Notary in bidder s country. However, certification by an official authorized for this purpose in Indian Embassy / High Commission in bidder s country shall be acceptable in lieu of the above. For bidders from member countries of Hague Convention, 1961, certification by Apostille of bidder s country shall also be acceptable. The above requirement is not applicable to Published Annual Reports submitted in original. In absence of requisite documents GAIL/EIL reserves the right to reject the Bid without making any reference to bidders. 4.4 A job executed by a bidder for its own plant/ projects cannot be considered as experience for the purpose of meeting requirement of BEC of the tender. However, jobs executed for Subsidiary/ Fellow subsidiary/ Holding company will be considered as experience for the purpose of meeting BEC subject to submission of tax paid invoice(s) duly certified by Statutory auditor of the bidder towards payments of statutory tax in support of the job executed for Subsidiary/ Fellow subsidiary/ Holding company. Such bidders to submit these documents in addition to the documents specified in the bidding documents to meet BEC. 4.5 A job completed by a bidder as a sub-contractor shall be considered for the purpose of meeting the experience criteria of BEC subject to submission of following documents in support of meeting the Bidder Evaluation Criteria : a) Copy of work order along with SOR issued by main contractor. b) Copies of Completion Certificates from the end User/ Owner and also from the main contractor. The Completion Certificates shall have details like work order no. /date, brief scope of work, ordered & executed value of the job, completion date etc. The bidders who are on Holiday/ Negative list of GAIL or EIL or black listed by any Government Department/ Public Sector on due date of submission of bid / during the process of evaluation of the bids, the offers of such bidders shall not be considered for bid opening/evaluation/award. If the tender documents were downloaded from website, IFB Page 4 of 7

offers submitted by such bidders shall also be not considered for bid opening/evaluation/award. 4.6 Payment of Bidding Document fee shall be by Crossed Bank Draft/ Banker s cheque from any Indian Scheduled Bank in favour of GAIL (India) Limited, payable at New Delhi and the same shall be submitted in physical form along with EMD. The bid of any bidder shall be considered only if the bid is accompanied by the prescribed Bidding Document fee in the form of demand draft along with EMD. 5.0 BID SECURITY /EARNEST MONEY DEPOSIT (EMD): Amount shall be as per clause no. 3.0 c) above. 5.1 The foreign bidder shall submit the bid security in US Dollar and the Indian Bidder shall submit the bid security in Indian Rupees and shall be in the form of Demand Draft/ Banker s Cheque/ Letter of Credit in favour of GAIL (India) Ltd., payable at New Delhi (issued by an Indian scheduled Bank or a branch of an International bank) or in the form of an irrevocable Bank Guarantee in favour of GAIL (India) Ltd. as per format enclosed with bidding document. GAIL shall not be liable to pay any bank charges, commission or interest on the amount of bid security. 5.2 In case, bid security is in the form of irrevocable Bank Guarantee the same shall be from any Indian scheduled Bank or a branch of an International bank situated in India and registered with the Reserve Bank of India as scheduled foreign bank in case of Indian Bidder and from any reputed International Bank or Indian Scheduled Bank in case of foreign bidder. However, in case of Bank Guarantee from banks other than the Nationalized Indian bank, the bank must be a commercial bank having net worth in excess of Rs. 100 Crores and a declaration to this effect should be made by such commercial bank either in the bank guarantee itself or separately on its letterhead. 5.3 The bid security shall be valid for two (02) months beyond the validity of the bid as specified in the Bidding Document i.e. 6 (Six) months beyond deadline for bid submission. 5.4 Bids without Earnest Money Deposit(EMD) / Bid Security will not be considered and will be summarily rejected, subject to exemptions as mentioned at clause no. 10.0 6.0 Bidder can download the Bidding Document from EIL s website http://engineersindia.com or GAIL s website http://www.gailtenders.in, http://tenders.govt.in.and GAIL s e-tendering website https://etender.gail.co.in. However, bidders have to submit their bids only through e-tendering website of GAIL. Corrigenda/Addenda, if any, shall also be available on the referred web sites. Further, bidder shall give an undertaking on their letter head that the content of the bidding document have not been altered or modified. 7.0 No extension in the bid due date / time shall be considered on account of delay in receipt of any document by mail. 8.0 a) The following documents in addition to uploading the scanned copies of the same on the GAIL s e-tendering website within due date and time, shall also be submitted in Original in physical form within 7 days from the final bid due date at the address mentioned in Instructions to Bidders of Bidding Document, failing which the bid shall be rejected irrespective of their status in the bid and not withstanding the fact that a copy of these documents have already been uploaded by the bidder: IFB Page 5 of 7

i) Demand Draft towards Bidding Document Fee. ii) EMD/Bid Security b) In addition to above, supporting documents pertaining to BEC duly authenticated as mentioned in clause 4.3 shall also be needed to be submitted. 9.0 GAIL/EIL reserve the right to assess bidder s capability to execute this work by taking into account various aspects such as performance during evaluation of bids. 10.0 REQUIREMENT FOR NSIC/PSU/MSME i) The firms registered with NSIC (under its single point registration scheme) will be exempted from the Bidding Document fee provided they are registered for the works they intend to quote. The Government Department / PSUs will also be exempted from the payment of Bidding Document fee. However, Industries registered with NSIC shall provide necessary documentary evidence, whereas PSUs shall submit declaration to this effect that they are PSU and are eligible for getting Bidding Document free of cost. ii) Public Sector Undertakings and firm registered with NSIC are exempted from furnishing Bid Security, provided the firms are registered for the works, they intend to quote and subject to their enclosing with their bid a copy of latest and current registration certificate. iii) Small Scale Industries registered with the NSIC under its single point registration scheme, shall be exempted from submission of bid security subject to their enclosing with their bid a copy of latest and current registration certificate. iv) The bidders are required to confirm whether the enterprise is a Micro/ Small/ Medium enterprises along with documents from the appropriate authority. Accordingly bidder to furnish the confirmation as per format attached with bidding document. 11.0 Bidding Document is non-transferable. Bids received from bidders in whose name Bidding Document fee has been submitted shall only be considered. Bidder must submit the Bidding Document Fee in their name. Bidding Document fee will be submitted by bidders as per clause nos. 3.0 above. In the event of this tender being cancelled, the tender fee shall be refunded to the concerned bidder 12.0 GAIL/EIL will follow Purchase Preference Policy as per prevailing guidelines of Government of India. 13.0 Bids must be accompanied with the bid security as mentioned above. Bids not accompanied with requisite bid security or bid security not in the requisite form specified above, shall be considered as non responsive and such Bids shall be rejected. 14.0 GAIL / EIL shall not be responsible for any costs or expenses incurred by Bidder in connection with the preparation or delivery of Bids, including costs and expenses related with visits to the site. 15.0 Bids sent through Fax / E-Mail / Computer floppy shall not be accepted. 16.0 Bids received after stipulated last date and time, due to any reasons what-so-ever, including postal delays, will not be considered. 17.0 GAIL/ EIL reserve the right to reject any or all Bids received without assigning any reason. IFB Page 6 of 7

18.0 Consortium/Joint bids shall not be accepted. 19.0 Fax and Telephone numbers of EIL, New Delhi are: Fax: 91-11-26191714 / 26167664; Telephone: 91-11-2676-2071. E-mail: vijay.garg@eil.co.in, mukesh.sinha@eil.co.in This Invitation of Bids (IFB) is an integral and inseparable part of Bidding Document. ASST. GENERAL MANAGER (C& P) ENGINEERS INDIA LIMITED NEW DELHI IFB Page 7 of 7