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    Bidding:What is bidding ?

    Any formal and competitive procurement

    procedure through which offers are requested,received, and evaluated for the procurement of

    goods, works, and services and as a consequence

    of which an award is made to the bidder whose

    offer is substantially responsive and mostcompetitive.

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    Benefits of Bidding:

    Bidding procedure ensures that we receive the best

    value for our resources. It involves conducting a

    public-private competition to improve the value ofthe money we pay for the services or products.

    Benefits of Competitive Bidding are:

    Transparency

    Lower prices

    Better information

    Curbing Monopolies.

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    Limitations of Competitive Bidding

    Time Consuming

    High cost of Tendering and Bid Preparation

    Suitable for Large Value Contracts. Not suitable for Small Value Contracts

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    BiddingWhat are bidding documents ?

    Bidding document constitute a set of documents

    which establish the object of the bidding (thetechnical specifications), specify proposed contract

    conditions and establish the bidding procedure to

    be followed.

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    Purpose of Bid DocumentsFour main purposes :

    Instruct bidders on procedure for submission of

    bids. Describe goods/services/works to be procured.

    Inform bidders of criteria of evaluation

    Define conditions of contract

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    Factors to be considered while

    preparing Bid Document :Equity

    Fairness

    Transparency

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    Equity :Terms and conditions are not unduly loaded in favour of

    the purchaser/owner.

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    Fairness :Impartial, consistent and therefore reliable. It offers allinterested contractors a level playing field on which tocompete and thereby, directly expands the purchasersoptions and opportunities.

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    Transparency : Establishes and then maintains rules and procedures

    that are accessible and unambiguous.

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    Factors influencing terms & conditions

    specified in bidding documentsType of Bidding Funding of project

    Availability of benefits to a project

    (Deemed Export Benefit - Custom duty exemption) Status of Project

    Mega Power Project

    Non-Mega Power Project

    R&M

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    Types of Bidding

    ICBDCB

    International Competitive BiddingDomestic Competitive Bidding

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    International Competitive Bidding Preferred for large contracts of goods, works and services

    Where substantial savings accrue to Project Cost on

    account of benefits available to Bidders. Competition is open to Domestic and Foreign Suppliers.

    Depends on the technology involved.

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    Domestic Competitive BiddingValue of goods/services being procured are small

    Reasons such as emergency action/requirement

    Contract involves significant transportationcomponent and are labor intensive

    Goods or works are available locally at prices

    significantly below those in the internationalmarket

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    Bidding Procedures : Single Stage

    - Single Stage , Single Envelope

    - Single Stage , Two EnvelopeTwo Stage Bidding

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    Single Stage - Single Envelope Ideal where Technical Specifications are clear.

    Past experience of procurement is available.

    Techno-Commercial and Price Bids are in one envelope. Both are opened at the same time.

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    Single Stage - Two Envelope Suitable for first time and/or complex procurement.Technical and Price Bids in separate envelopes

    First Bid opening - Only Technical Bid

    Adjustments to Techno-Commercial features by way ofAmendment to Bidding Documents.

    Supplementary Price invited only for adjustments.

    Second Bid opening - Price Bid and Supplementary Price Bid

    of responsive bidders only.

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    Two Stage Bidding Ideal for complex equipment

    First stage

    Invite Techno-Commercial proposals. Discuss with Bidders.

    Issue amendments to Bidding Documents to normalize

    the Technical Specifications and Commercial conditions

    wherever required. Second Stage

    Invite Price Bids fully complying to Bidding Documents.

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    Types of funding : Multilateral Funding

    WBWorld Bank

    JBIC- Japanese Bank for International cooperation.

    ADB- Asian Development Bank

    ECB (Buyers credit) External Commercial Borrowings.

    Domestic Borrowings

    Own Resources

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    Scope of procurement Supply

    Supply-cum-Erection/Supply-cum-Civil-Erection

    Civil works Consultancy

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    Qualification process to be adopted in selection

    Pre-qualification

    Post-qualification

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    Pre - Qualification Practice - Large or complex civil works

    - Custom designed equipment

    - Specialized services

    Objective - Saves expenses of bidding for unqualified bidders- Improves interest of leading contractors

    - Indicates interest of potential bidder

    - Reduces potential for controversy

    - Description of works, size or cost

    Information provided- Scope of contract

    - Source of finance, terms of payment

    - Implementation schedule and procedures

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    Pre - Qualification Criteria - Experience and past performances on

    contracts- of similar type & size

    - under similar conditions- Personal qualifications

    - Financial status

    - past performances

    - liabilities/assets- Contract commitments

    - Equipment & plant proposed for work

    - Legal status

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    Pre - Qualification Information requested- Minimum necessary

    - Use standard questionnaire

    Number Prequalified- All firms who meet minimum criteria

    Evaluation - Point system desirable- Minimum financial/physical resources may be

    specified

    Update - Bid documents may require update of information

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    Post - Qualification Only for selected bidder

    Criteria - Capacity

    - Technical capacity

    - Product reputation

    - Financial resources

    - Spare parts and services

    - Past Performances If there was pre-qualification, confirm that bidders status is

    substantially same as at pre-qualification

    C t t f l Bid

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    Contents of sample Bid

    Document

    The details and complexity of bidding documentsvary according to the nature and size of thecontract, they generally include:

    NIT/IFB(notice inviting tender/invitation for

    bid) ITB(instruction to bidder)

    Bid Data Sheet

    Evaluation & Qualification Criteria

    GCC(general conditions of contract)

    SCC(special conditions of contract)

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    NIT/IFB:Notice Inviting Tender/Invitation for Bid

    NIT/IFB is normally used to invite potential bidders topresent their bids for the project at hand. It describes :

    - The Party floating the NIT/IFB- Source of funding

    - Indicates the goods/services to be procured

    - Availability of Benefits to the project

    - Whether Mega Power Project or not

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    Detail NIT NTPC Limited (A Government of India Enterprise) CORPORATE CONTRACTS, NOIDA INVITATION FOR BIDS(IFB) FOR CONSULTANCY SERVICES FOR PREPARATION

    OF MINE PLAN ,FEASIBILITY REPORT & AREA DRAINAGE/NALLA DIVERSIONSTUDY OF DULANGA COAL MINING BLOCK ( International Competitive Bidding) IFB No.: CS-7015-751B-9 DATE: 18.07.2007 NTPC invites sealed bids from eligible bidders for Consultancy services for preparation of mine plan

    ,feasibility report & area drainage/nalla diversion study of Dulanga coal mining block as per thescope of work mentioned in the bidding documents and briefly described herein after .

    BRIEF SCOPE OF SERVICES

    The scope of services in brief includes preparation of Mine Plan ,Feasibility Report & Areadrainage/Nalla diversion study of Dulanga coal mining block and clearance of the Mine Plan fromthe concerned Government/Statutory authorities.

    NTPC intends to finance the above Consultancy Package through Own Resources. 4.0 Detailed specification, scope of work and conditions are given in the bidding documents, which

    are available for examination and sale as per the following schedule: Bidding Document No. CS-7015-751B-9 Documents Sale Dates 18.07.2007 to 17.08.2007 & Timings from 1000 hrs to 1500 hrs. (IST)

    Bid Receipt Date & Time 18.09.2007 up to 10.30 Hrs.(IST) Bid Opening Date & Time 18.09.2007 at 11.00 Hrs.(IST) Cost of Bidding Document Rs.1125/- per set for Indian Bidders and US$25/- per set for Foreign Bidders 5.0 All bids must be accompanied by Bid Guarantee for Rs 1,28,000 (Indian Rupees one lakh and

    twenty eight thousand only) for Indian Bidders and US$ 3150 (US Dollars three thousand one hundredfifty only) for foreign Bidders as stipulated in the Bidding Documents. Bids not accompanied by therequisite Bid Security in a separate sealed envelope or bids accompanied by Bid Security ofinadequate value shall not be entertained and in such cases, bids shall be returned to the bidderswithout being opened.

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    Detail NIT 6.0 QUALIFYING REQUIREMENTS FOR BIDDER

    Bidder should have successfully completed the following during the last seven (7) years preceding to the date of bid opening. Two (2) consultancy assignments each covering preparation of mine plan for open cast mines including approval

    from statutory authority, wherever applicable, out of which at least one (1) of the consultancy assignments shouldbe for open cast coal/lignite mine.

    Two (2) consultancy assignments each covering preparation of feasibility report for open cast mines out of whichat least one (1) of the consultancy assignments should be for open cast coal/lignite mine.

    6.2 The scope of the assignments(s) mentioned at 6.1 (i) & (ii) above for open cast coal/lignite mine shouldhave together covered geological studies, ore body modeling, estimation of reserve and quality, pit design,

    preparation of surface master plan, selection and sizing of equipment development of project implementationschedule, mine economics, estimation of capital investment, coal evacuation and environment managementaspects.

    6.3 Evidence of satisfactory completion of consultancy assignment shall be client certificate forboth feasibility report & mine plan including approval of mine plan from statutory authority, wherever applicable.

    7.0 NTPC reserves the right to reject any or all bids or cancel/withdraw the Invitation for Bids (IFB) withoutassigning any reason whatsoever and in such case no bidder/intending bidder shall have any claim arising out ofsuch action.

    8.0 A complete set of Bid documents may be purchased by any interested bidder on submission of a writtenapplication and payment (non-refundable) of the cost of bidding documents as mentioned at 4.0 above in theform of a Crossed Account Payee Demand Draft in favour of NTPC Limited, New Delhi. The bidding documentscan also be downloaded from http://www.ntpctender.com on registration and online payment (non-refundable)towards cost of bidding documents and the downloaded documents can be used for bidding purposes.

    In case the registered bidders who have downloaded the bidding documents require an additional manual copy ofthe documents then such bidders shall be required to purchase the manual copy of the bidding documentsfollowing the procedure detailed above.

    Issuance of bid documents to any bidder shall not construe that such bidder is considered to be qualified. Bidsshall be submitted and opened at the address given below in the presence of bidders representatives who chooseto attend the bid opening.

    9.0 Address for communication:

    Sr. Manager (CS-CM&CW) / Manager (CS-CM&CW), NTPC Ltd., Engineering Office Complex, A-8A, Sector 24, NOIDA, Distt. Gautam Budh Nagar, U. P., PIN: 201 301, India Tel Nos. : 91-120- 2410467 /2596676/2596639 FAX Nos. : 91-120-2410295 Websites:www.ntpctender.com orwww.ntpc.co.in

    http://www.ntpctender.com/http://www.ntpc.co.in/http://www.ntpc.co.in/http://www.ntpctender.com/
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    ABRIDGED NITNTPC Limited

    (A Government of India Enterprise)

    CORPORATE CONTRACTS, NOIDA

    INVITATION FOR BIDS(IFB)

    FOR

    CONSULTANCY SERVICES FOR PREPARATION

    OF MINE PLAN ,FEASIBILITY REPORT & AREA DRAINAGE/NALLADIVERSION STUDY

    OF DULANGA COAL MINING BLOCK( International Competitive Bidding)

    IFB No.: CS-7015-751B-9 Date: 18.07.2007

    NTPC invites sealed bids from eligible bidders for Consultancy services for preparation ofmine plan ,feasibility report & area drainage/nalla diversion study of Dulanga coalmining block

    Bidding documents shall be on sale from 18.07.2007 to 17.08.2007

    Bids shall be received up to 1030 hrs (IST) on 18.09.2007 and shall be opened on the sameday at 1100 hrs.

    For detailed Invitation for bids and bidding documents, please visit at www.ntpctender.comor www .ntpc. co. in or contact Sr. Manager (CS-CM&CW) / Manager (CS-CM&CW), NTPC Ltd., 6th Floor, EOC, A-8A, Sector-24, NOIDA-201301, Distt. GautamBudh Nagar (U.P.), India

    Tel Nos. : 91-120-2410467 / 2596676/ 2596639

    FAX Nos. : 91-120-2410295 .

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    ITB:Instruction to Bidders

    Provides information to the bidders regarding the

    Forms, Procedure and Timing of bidding

    Construction of Contract.

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    BDS:Bid Data Sheet Qualifying requirement

    Procedure for clarification

    Amount of Bid Security [ 2% of Cost Estimate ]

    Number of copies to be submitted Instruction on modification & withdrawal of bids

    Closing date, Validity of Bid [ normal sale period]

    Evaluation Criteria

    Applicability of preferencesAward of Contract procedure

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    Qualifying Requirements General - Regular supplier/manufacture having adequateknowledge

    - No change in Ownership anticipated during contract

    - Adequate financial stability

    - Adequate plant & manufacturing capability

    - Adequate field organisation

    Specific - Should have relevant experience as given IFB

    Others - Capacity/Capability assessment

    -Financial Requirements such as Networth,Bank

    Guarantee Limits, Cash Credit limits etc

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    GCC:General Conditions of Contract Definitions of terms

    Rights & Obligations of both parties

    Defect liability period

    Price Adjustment procedure

    Terms and Methods of Payment

    Contract Securities

    Damages for delay

    Settlement of disputes & Arbitration

    Procedure for variation

    Procedure for shipment/Insurance

    Governing Law

    Force Maejure

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    SCC:

    Special Conditions of Contract

    Supplements the GCC for the particular procurement :

    Schedule of supply - Specifies quantity, delivery

    location and dates for reqd. items Specifies amount of securities

    Time/Work Schedule

    Package specific requirement

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    Technical Specifications/DrawingsThis will contain the General Specifications, Design

    Criteria, Parameters for individual Systems and

    Equipment and Parameters to be guaranteed in the Bid

    for conducting P&G tests to establish the same.

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    Forms & ProceduresThis will contain the following:

    Bid Form and price Schedules.

    Bid Security FormBank Guarantee.

    Bid Security FormBank Guarantee in case of BidForm Joint Venture

    Bid Security formLetter of Credit

    Form of Notification by the Employer to Bidder.

    Form of Sight Draft.

    Forms of Notification of Award.

    Form of Contract Agreement.

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    Forms & Procedures Performance Security Form.

    Performance Security Form in case of contract awardedto Joint Venture.

    Bank Guarantee Form for Advance Payment. Bank Guarantee Form for Advance Payment in case of

    Contract awarded to Joint Venture.

    Form of Completion Certificate.

    Form of Operational Acceptance Certificate. Form of Trust Receipt.

    Forms of Indemnity Bond (2 nos.)

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    Forms & Procedures Form of Authorisation Letter.

    Forms of Deed of Joint Undertaking.

    Form of Bank Guarantee by Associate/Collaborator.

    Form of Joint Venture Agreement.

    Form of Bank Guarantee Verification Check List.

    Form of Extension of Bank Guarantee.

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    Evaluation & Qualification Criteria

    This specifies the criteria that will be used to

    evaluate the bids.

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    Price Preference Preference given to Indian Companies (Private or Public)

    for promoting Indian goods. It helps in growth of oureconomy and utilization of our rich resources. Also, it giveslevel playing field to domestic players in competing with

    foreign players.

    Two types of provisions are envisaged in biddingdocuments depending upon project status:

    (1) Mega Power Project

    (2) Non Mega Power Project

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    Mega Power ProjectMega power project is certified by an officer not below the

    rank of a Joint Secretary to the Government of India inMOP

    (a) an inter-state thermal power plant of capacity of 1000MW or more; or

    (b) an inter-state hydel power plant of capacity of 500MWor more,

    (c) the power purchasing state has constituted theregulatory commission with full powers to fix tariffs

    (d) undertakes to privatise distribution in all cities morethan one million population, in that state, within a periodfixed by MOP

    (e) the power purchasing state has agreed to providerecourse to that states share of central plan allocationsand other devolutions towards discharge of anyoutstanding payment in respect of purchase of power

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    Price Preference

    Mega Power PolicyPrice Preference = 15% x LF

    LF = CIF Price in Schedule-1

    +CIF value of Import Content of Ex-works price

    in Schedule-2

    The value of import content of Ex-works price quoted inschedule-2, shall be the value of import content as declaredby Bidder in Attchment-9 to bid in respect of Plant &Equipment including mandatory spares to be manufacturedor fabricated within theemployers country and quoted onEx-works (India) basis.

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    Price Preference

    Non-Mega Power Policy Price Preference to domestic bidders participating

    in ICB to offset CST/OCTROI

    Domestic Bidders with Local Content more than30% Of Ex-works price of goods offered

    Bidders will be evaluated and classified into groups

    for applying the criteria of Price Preference

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    New provisions in Bid DocumentsMaintenance of records of weekly progress review

    meeting at site"The Contractor shall be required to attend all weekly site progressreview meetings organized by the 'Project Manager' of his authorized

    representative The deliberation in the meetings shall interalia includethe weekly program, progress of work (including details of manpower,tools and plants deployed by the contractor vis-a-vis agreed schedule)inputs to be provided by Employer, delays, if any and recovery program,specific hindrances to work and work instructions by Employer. Theminutes of the weekly meetings shall be recorded in triplicate in a

    numbered register available with the 'Project Manage' or his authorizedrepresentative These recordings shall be jointly signed by the ProjectManager of his authorized representative and the Contractor and onecopy of the signed records shall be handed over to the Contractor

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    New provisions in Bid DocumentsInterest Bearing Advance

    With regard to mobilization advance, it has

    been decided that henceforth the mobilzationadvance granted to contractors for theInstallation/ Erection/ Civil portion ofContracts shall be specified as interest

    bearing for future packages. The rate ofinterest for such advances shall be specified as12% per annum

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    New provisions in Bid DocumentsHosting of Bid Documents on WEB

    It has now been decided that NTPC shall host the

    complete bidding documents on the website and allthe prospective bidders would be permitted todownload the bidding documents from the websitefor taking the advance action for submitting theirbids. However, it would be mandatory for the

    prospective bidders to purchase the hard copy forbidding purposes

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    New provisions in Bid DocumentsElectronic Fund Transfer

    It has been now decided that wherever direct

    payments are envisaged to be released under thecontract, the same shall henceforth be released throughElectronic Fund Transfer System, wherever technically

    feasible.

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    New provisions in Bid DocumentsContractor Performance Feedback and IneligibilityThe Employer has in place an established 'Contractor Performance andFeedback System' against which the Contractor's performance duringthe execution of Contract shall be evaluated on a continuous basis atregular intervals. In case the performance of the Contractor is foundunsatisfactory on any of the following four parameters, the contractorshall be considered ineligible for participating in future tenders for a

    period as may be decided by the Employer. Financial Status Project Execution and Project Management Capability

    Engineering & QA Capability Claims & Disputes

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    New provisions in Bid DocumentsFraud Prevention Policy

    "The contractor along with their associate/ collaborator/

    Subcontractors/ sub-vendors/ consultants/ service providers shallstrictly adhere to the Fraud Prevention policy of the Employer displayed

    on its tender website:http://www.ntpctender.com

    The contractor along with their associated /collaborator/subcontractors/sub-vendors/consultants/service providers shall observethe highest standard of ethics and shall not indulge or allow anybodyelse working in their organization to indulge in fraudulent activities

    during execution of the content. the Contractor shall immediatelyapprise the Employer about any fraud or suspected fraud as soon as itcomes to their notice."

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    THANK YOU