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GAIL (INDIA) LIMITED

DABHOL- BANGALORE PIPE LINEPROJECT

BIDDING DOCUMENT NO.: RKS/A027-010-QB-MR-9010/1001

(ETENDER

NO.

8000001843 )

BIDDING DOCUMENT FORCARBON STEEL BARE / COATING /

COATED LINE PIPES

PROCUREMENT UNDER INTERNATIONALCOMPETITIVE BIDDING

VOLUME I : COMMERCIAL SECTION

VOLUME II : TECHNICAL SECTION

Prepared & Issued by:

Regd. Office : Engineers India Bhawan, 1, Bhikaiji Cama Place, New Delhi - 110066

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Regd. Office: Engineers India Bhawan, 1 Bhikaiji Cama Place, New Delhi - 110 066, India.

TEL: NO. : 00 91 11 26102121 : FAX NO. : 00 91 11 26194722 / 26191714

REQUEST FOR QUOTATION (RFQ)

*RFQ No. :RKS/A027-010-QB-MR-9010 /1001 Date: 26-MAR-2010

Client : GAIL (India) Limited

Project : Dabhol - Bangalore Pipeline Project

MR No. : A027-010-QB-MR-9010 Rev. C

Item: Carbon Steel Bare / Coating / Coated LinePipes

Due Date : Upto 1400 Hrs. (IST) on 11-MAY-2010

Pre-Bid Meeting: 10.00 Hrs. (IST) on 09-APR-2010 at GAIL

New Delhi

BID DOCUMENT FEE: Shall be furnished in physical form as per IFB

BID SECURITY: Shall be furnished in physical form as per Clause 14 of Instructions to Bidders

UNPRICED BID OPENING: PUBLIC OPENING AT 1500 hrs. (IST) on 11-MAY-2010 at GAIL (India)Ltd. 16, Bhikaiji Cama Place, RK Puram, New Delhi- 110066 PRICED BID

OPENING: PUBLIC OPENING : DATE, TIME AND VENUE SHALL BE INTIMATED LATER.

Gentlemen,

1. E-Bids are requested on behalf of our client M/s. GAIL (India) Limited, for the captioned item in totalcompliance to technical specifications, scope and terms & conditions of enquirydocuments/attachments. Your offer must be complete in all respect and must containconfirmation/compliance to all points of enclosed Bidding Documents without any deviations i.e. ZERODEVIATION OFFER, failing which your offer will be liable for rejection.

2. Part I and II of E-Bid should be submitted with e-envelops and cut- out slips as explained in IFB onGAIL's e-tendering website system. Part III , Part IV and Part V of bid should be submitted in physicalform in sealed envelopes pasted with corresponding cut-out slips enclosed. Bids should besubmitted in accordance with Clause - 20 of the Instructions to Bidders.

3. Bids complete in all respects should be submitted in GAIL's e-tendering web site on or before the BID-SUBMISSION DATE & TIME.

4. Please confirm that you have not been banned or delisted by any Government or Quasi Governmentagencies or PSUs. If you have been banned or delisted by any Government or Quasi Governmentagencies or PSUs, then this fact must be clearly stated. If this declaration is not furnished your bid shallbe treated as non-responsive and liable for rejection.

We reserve the right to make any changes in the terms and conditions of purchase and to reject any or all thebids.

* Please specify Bid Document No. in all correspondenceTHIS IS NOT AN ORDER

Very truly yours,

For & on behalf of Client

(R.K. Sabharwal) , DGM (C & P)Engineers India Limited

Enclosure :

1. Bid Document No. A027-010-QB-MR-9010 /1001 comprising of following :

1.1 Volume - I of II : Commercial (In the form of CD).

1.2 Volume - II of II : Technical - MR No. A027-010-QB-MR-9010 Rev. C (In the form of CD).

2. Cut Out Slips.

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DO NOT OPEN - THIS IS A QUOTATION

Client :GAIL(INDIA)LIMITED

Project :Dabhol Bangalore PipelineProject

RFQNo. :RKS/A027010QBMR9010/1001

Item : CarbonSteelBareLinePipes

DueDate&Time :Upto1400Hrs.(IST)on11MAY2010

From: To:

The Assistant General Manager (C&P)Engineers India Limited,

EI Annexe, 2nd Floor,1, Bhikaiji Cama Place,R.K. PuramNew Delhi 110066, India

(To be pasted on the outer envelope containing UNPRICED OFFER) (PART I)

(TOBEDELIVEREDATOURDAKRECEIPTSECTIONSITUATEDATGROUNDFLOOROFANNEXEBUILDING==================================================================



Project :Dabhol Bangalore PipelineProject




From: To:



(To be pasted on the outer envelope containing PRICED OFFER) (PART II)

(TOBEDELIVEREDATOURDAKRECEIPTSECTIONSITUATEDATGROUNDFLOOROFANNEXEBUILDING==================================================================

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Project :Dabhol BangalorePipelineProject




From: To:



(To be pasted on the physical envelope containing Original BID SECURITY) (PART III)==================================================================



Project :Dabhol BangalorePipelineProject

RFQNo.

:RKS/A027

010

QB

MR

9010/1001



From: To:The Assistant General Manager (C&P)Engineers India Limited,

EI Annexe, 2nd Floor,1, Bhikaiji Cama Place,R.K. Puram

New Delhi 110066, India

(To be pasted on the physical envelope containing Original Demand Draft for BID Document Fee) (Part IV)

(TOBEDELIVEREDATOURDAKRECEIPTSECTIONSITUATEDATGROUNDFLOOROFANNEXEBUILDING)

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Project :DabholBangalorePipelineProject




From: To:

The Assistant General Manager (C&P)Engineers India Limited


(To be pasted on the physical envelope containing Demonstration Fee (PART V)(TOBEDELIVEREDATOURDAKRECEIPTSECTIONSITUATEDATGROUNDFLOOROFANNEXEBUILDING)

======================================



Project :DabholBangalore PipelineProject




From : To :The Assistant General Manager (C&P)Engineers India Limited


(To be pasted on the physical envelope containing Power of Attorney) (Part VI)(TOBEDELIVEREDATOURDAKRECEIPTSECTIONSITUATEDATGROUNDFLOOROFANNEXEBUILDING)

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GAIL (INDIA) LIMITED

DABHOL- BANGALORE PIPELINEPROJECT

BIDDING DOCUMENT NO.: RKS/A027-010-QB-MR-9010/1001

BIDDING DOCUMENT FORCARBON STEEL BARE / COATING /

COATED LINE PIPES

PROCUREMENT UNDER INTERNATIONALCOMPETITIVE BIDDING

COMMERCIALVOL.: I

Prepared & Issued by:

Regd. Office : Engineers India Bhawan, 1, Bhikaiji Cama Place, New Delhi - 110066

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INDEX

COMMERCIAL - VOLUME I1. Section - I Invitation for Bid (IFB)

Format AFormat BFormat CFormat DFormat E

2. Section - II Instructions To Bidders (ITB)3. Attachment I F1: Bidder's General InformationF2: Bid FormF3: List of EnclosuresF3A : Annual TurnoverF3B : Financial SituationF4: Proforma for Bank Guarantee for Earnest Money Deposit/Bid SecurityF5: Letter of AuthorityF6: No Deviation ConfirmationF7: CertificateF8: Details of Similar Work Done During Past Five YearsF9: Present Commitments of the BidderF10: Proforma of Bank Guarantee For Contract Performance Guarantee

F11: Certificate of Non-Involvement of AgentF12: Proforma for Details of Indian AgentF13: Check ListF14: 3LPE / Internal Coating Mill Capability Assessment

4. Section - IIIA General Conditions of Contract - Goods (GCC-Goods) - Applicable for supply ofBare Pipes (Option - 1) & supply of coated Pipes (Option -3)

5. Section- IIIB Special Conditions of Contract - Goods (SCC-Goods) - Applicable for supply ofBare Pipes (Option -1) & supply of coated Pipes (Option - 3)

6. Section - IIIC Terms of payment (Option 1 & 3)7. Section - IIID Price schedule for supply of bare pipes (Indian & Foreign) - Option -18. Section - IIIE Price schedule for supply of coated pipes (Indian & Foreign) - Option -39. Section - IVA General Conditions of Contract - Works (GCC-Works) - Applicable for coating

works

10. Section - IVB Special Conditions of Contract - Works (SCC-Works) - Applicable for coatingworks

11. Section - IVC Terms of payment (Option - 2)12. Section - IVD Price schedule for coating works (Option - 2)13. Attachment II Indemnity Bond14. Attachment III Contract Format15. Attachment IV Packing, Marking and Shipping Instructions

Special Packaging Requirements Integrity Pact

Addendum to ITBVendor Performance Evaluation Procedure

TECHNICAL - VOLUME II16. Material Requisition No. A027-010-QB-MR-9010 REV.C

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DABHOL- BANGALORE PIPELINE PROJECT

SECTION I

INVITATION FOR BID (IFB)

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1.2.7

Dateandtimeofopeningof

Unpriced eBids at GAIL

office.

At1500hrs.(IST)on11May2010

1.2.8BidDocumentFee

(nonrefundable)

Rs.45,000/ forIndianBidders

US$1000 forForeignBidders.

1.2.9 ContactPerson

Mr.R.K.

Sabharwal,

DGMC&P)/Mr.

V.K.

Narang,

AGM (C&P) / Mrs. Rekha Choudhary, Sr.

Manager(C&P)/Mr.AjayShelke,Sr.Eng.(C&P)

FaxNo.:00911126191714/26167664

Email:[email protected];[email protected]

(IfanyofthedatesidentifiedabovehappentobeadeclaredholidayinEIL/GAILNewDelhi,the

nextworkingdayshallbeconsidered).

Bids are to be submitted inGAILs ETenderingwebsite (https://etender.gail.co.in). Bidders shall

submittheirbidsi.e.UNPRICEDBidinCollaborationFolders of etenderingsystemandPriceBid

in SRM as attachment. Price Schedule Formats are enclosed as an excel attachment in Bidding

Document. Biddersarerequestedtodown loadthesameandquotetheirpricesstrictlyasperthe

formatwithout

altering

the

content

of

it.

Thebidwillbesubmittedintwopartsasfollows:

PARTI(UNPRICEDBID)

Tobe submitted inCollaborationFoldersofetendering system. Unpricedbidmustbecomplete

with all technical details alongwith all other required documents including price scheduleWITH

PRICESBLANKEDOUT, Agreed terms and conditions etc., duly filled in and signedwith seal. In

additiondocumentsasmentionedunderClause9.5belowshallalsobesubmittedinphysicalform.

PARTII(PRICEDBID)

To be submitted as an SRM attachment. Price bid should contain only the prices,without any

conditionwhatsoever.

BidscompleteinallrespectsshouldbesubmittedonorbeforelastdateandtimeofBidsubmission.

TheBids submittedon line inGAILsEtendering systemwillonlybeconsidered forevaluation.

PhysicalBidssentthroughFax/Email/Courier/Postwillnotbeaccepted.

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2 ScopeofSupply

ItemNo.

Quantity(Meter)

Description

1.0

Supply of API 5L Gr.X-70 PSL-2 Carbon Steel line pipesmanufactured & conforming to spec. no. 6-71-0001/6-71-0004 &addendum number A027-010-16-71-AD-05 and duly coated with 3

Layer Polyethylene (External) & Epoxy (Internal) as per specificationnos. A027-010-16-71-SP-41 & A027-010-16-71-TR-01 respectively, asper following details:

Specified OutsideDiametermm (inch)

Specified WallThickness

(mm)Option-1 Option-2 Option-3

1.01 97500 914 (36) 13.5 Bare Coating Coated



1.04 150 914 (36) 17.5 BareInternalCoating

only

InternalCoated

only





1.09 100 610 (24) 11.9 BareInternalCoating

only

InternalCoated

only

2.0

Supply of API 5L Gr.X-70/X-80 PSL-2 Carbon Steel line pipesmanufactured & conforming to spec. no. 6-71-0001/6-71-0004 &addendum number A027-010-16-71-AD-05 and duly coated with 3Layer Polyethylene (External) & Epoxy (Internal) as per specificationnos. A027-010-16-71-SP-41 & A027-010-16-71-TR-01 respectively, asper following details:

Specified OutsideDiametermm (inch)

Specified WallThickness

(mm) Option-1 Option-2 Option-3

X-70 X-80

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ii) ForOption 2 onlyiii)ForOption1andOption 2onlyiv)ForOption3only

Noncompliancetothisshallresultinrejectionofthebidforthecorresponding item.

3 QUALIFICATIONCRITERIA3.1 TECHNICAL

3.1.1 Option1:Bare

Linepipes

Thebiddershalleitherbea linepipemanufacturerorasupplierwhohasbeenauthorised

byalinepipemanufacturer.

3.1.1.1 Forlinepipemanufacturer:

i. ThePipeManufacturershallbeaManufacturerofAPI5LQualitylinepipesorequivalentand shall have valid license to use API monogram on API 5L line pipes of Product

SpecificationLevel2(PSL2)qualityfromtheproposedpipemill(s).

ii. ThePipeManufacturershouldhavemanufacturedandsuppliedfromtheproposedpipemill(s)at leastone(1)kmof linepipe inasingleorderasperAPI5LPSL2orequivalent

thatareofsametypeandequalorhigherintermsofdiameter,wallthicknessandgrade

asquoted

for,

in

the

last

seven

(07)

years

reckoned

from

the

bid

due

date.

iii. Inaddition,PipeManufacturer shouldhavemanufacturedand supplied fromproposedpipemill(s)atleast10%ofthequotedquantityofLinepipes inasingleorderasperAPI

5LPSL2(orequivalent)ofGradeX70orhigherforbiddersquotingGr.X80ofitem2.0

&GradeX65orhigherforallitemsofGr.X70,thatareofsametype,equalorhigherin

termsofdiameterwithminimum thickness of13.5mmorhigherfor914mm(36)O.D.,

9.0mm(forGr.X80)/10.3mm(forGr.X70)orhigherfor762mm(30)O.D.,8.7mmor

higherfor610mm(24)O.D.,7.1mmorhigherfor457mm(18)O.D.asquotedfor,inlast

seven(07)yearsreckonedfromthebidduedate.

iv. Equivalencewith

API

5L

PSL2

shall

be

established

based

on

the

requirements

of

four

parametersi.e.SpecifiedMinimumYieldStrength,ColdExpansion,FractureToughness&

100%NonDestructiveexaminationofweldseam.Theindividualshallbesameorbetter.

ForestablishingequivalencewithAPI5LPSL2,biddershallsubmitthecopyofapplicable

code(EnglishtranslationofrelevantextractsdulycertifiedbyChamberofCommerce, in

casethecodeisindifferentlanguageotherthanEnglish).Inaddition,biddershallsubmit

certified document establishing the equivalence of SMYS and Fracture Toughness test

result.

v. Thebidder shallprocure steelplate/coil from the steelplate/ coilmanufacturersprequalified by GAIL/EIL as per list provided in tender document, for API 5L Gr. X70

materials.In

addition,

the

bidder

may

submit

more

names,

if

they

so

desire,

which

shall

be evaluated during bidding stage based on the criteria mentioned in the tender

document for API 5L Gr. X70/ X80 materials as quoted for. Bidders offer shall be

unconditionalirrespectiveoffinallyqualifiedsteelplate/coilmanufacturer(s).

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The list of accepted steel plate/ coil manufacturer(s) other than specified in the bid

documentwill also be intimated to the successful bidder/(s) towhom FOA has been

issued.Ifanymillgetsqualified foronebidder, thesame shouldbequalified forall remaining

bidderstoo.

vi. Mill Qualification : The bidder shall furnish a certificate for proposed pipe mill(s),alongwith

their

bid,

which

have

not

been

audited

by

GAIL/

EIL

or

have

not

supplied

pipes

toGAILofsameorhighersize&materialgradeasquotedfor,duringlastseven(07)years

reckonedfromthebidduedate,asperFormatAprovidedinthebiddocument,froma

reputed International inspectionagency (i.e.CEIL/Lloyds/BV/DNV/TUV/ABS/Moody)

certifyingthattheproposedmillhasthecapabilitytoproduce linepipescomplyingwith

technical requirements specified in the bid document. Non compliance to this

requirementwillmakethemillliableforrejection.

Themillcapabilitycertificatefromoneoftheabovementionedreputedagenciesforthe

proposedmillforsametypeandequalorhigherintermsofdiameter,wallthicknessand

gradeasquotedfor,issuedinthelast12months,reckonedfromthebidduedate,forany

ofGAILprojectsshallbeconsideredacceptableforthisprojectalso.

vii. Incasetherequirementunderclause3.1.1.1ii)&3.1.1.1iii)abovearenotmetwithbyanIndianBidder, such Indian bidder shall be considered for supply of line pipes covered

underscopeofsupply,subjecttotheBidderdemonstratingmanufacturingcapabilityto

GAIL/EILasgivenbelow:

a. The Bidder shall demonstrate the capability of pipemill(s), fromwhere line pipes areproposedtobemanufacturedandsupplied,byactuallymanufacturingat leastten (10)

numbers ofAPI Spec.5L PSL2quality linepipes (with an average length of 12metre

each)ofsametypeandequalorhigherintermsofdiameter,wallthicknessandgradeas

quotedfor,inamannersimilartonormalcontinuousproductioninthepresenceofGAIL/

EIL.TheBiddershallcarryout firstdayproductiontest,aspertenderspecifications,on

two(2)

nos.

of

pipes.

The

other

normal

tests

shall

be

conducted

on

all

pipes

as

per

tender

specifications. Further, the demonstration shall be completedwithin fifteen (15) days

fromthebidduedate.

b. Subjecttothesatisfactorydemonstrationofthepipemill(s)capabilityasabove,GAIL/EILshalldecideon the technicalacceptabilityof theBidder for the supplyof linepipes. In

case, the mill(s) fail to meet the tender specification requirements during GAIL/ EIL

witnessed Inspection and testing of the above production demonstration for

qualification, the mill(s) shall be disqualified. GAIL/ EILs decision shall be final with

respecttothetechnicalacceptabilityoftheBidder.

c. TheIndianBiddershallcarryouttheabovecapabilitydemonstrationatnocosttoGAIL/EIL.ThepipemanufacturersmillalreadyqualifiedwithGAIL/EILbasedondemonstrationin last two (2)years from thebidduedate, for thequoted item(s) shallbeconsidered

qualified for the respective item(s)aswell as for the item(s)with lowerdiameter and

thickness as specified in the requisition,manufactured by the same process, without

capabilitydemonstration.

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d. In view of the tight demonstration deadline, for the purpose of demonstration ofcapabilitiesofpipemill(s),asmentionedinclause3.1.1.1viia)to3.1.1.1viic)above,incase

thebidderexperiencesdifficultyin:

Sourcingtheskelp/platesmeetingtherequirementsoftheexactchemicalcomposition

specifiedintheEILspecifications,useofmaterialsconformingtoAPI5LPSL2,GradeX70

and/orGradeX80maybepermittedasaspecialcase.

Meeting

the

test

requirements

of

tender

specifications,

the

test

requirement

of

API

5LPSL2,GradeX70and/orGradeX80maybeacceptableasminimum.For impacttest,

minimumrequirementofAnnexureGofAPI5Lshallbecompliedwith.

The Bidder shall note that above relaxations, if permitted, shall be valid for

demonstration purpose only.However, allother requirements of clause 3.1.1.1viia) to

3.1.1.1viic)aboveshallbecompliedwith.

Biddertonotethatafterawardofthecontract,theskelp/plateprocurementaswellas

pipemanufacturingshallbestrictlyasperthetenderspecifications.Thebiddershallgive

an undertaking that they shall not ask for using these special relaxations given for

demonstrationpurpose,atanytimeduringtheorderexecution.

3.1.1.2 Forsupplierwhohasbeenauthorisedbylinepipemanufacturer:

Incaseoflinepipemanufacturer(s)whodonotsubmittheirbiddirectlyasamatterof

theircorporatepolicy,thebidmaybesubmittedthroughtheirauthorizedtrading

house/supplier. In such cases, the concerned tradinghouse / suppliermay submit the

offer asBiddersubjecttofulfillingthefollowingcriteria:

a) Thebiddershall supply linepipesproducedbyanestablished linepipemanufacturerwhomeetsqualification requirements stipulatedunder clause3.1.1.1i) to3.1.1.1.vi)

above.

b) Thebidder

shall

furnish

an

authorisation

certificate

from

the

line

pipe

manufacturer,

confirming the bidders status as their authorized supplier/trading house. The

authorisationCertificateshallbevaliduptothecompletionofexecution oftheorder.

Thebidder shallalso furnishacertificate from the linepipemanufacturerconfirming

that themanufacturerasacorporatepolicydoesnotquotedirectlyandhis linepipe

are quoted through their authorized supplier/ trading house only. Further, one

manufacturer can quote only through one supplier only and a supplier shall offer

productofonlyonemanufactureronly.

c) Thebidshallberejected incaseofchangeofproposed linepipemanufacturer afterthe bidduedate.

3.1.2 Option2:Three

layer

side

extruded

Polyethylene

and

internal

epoxy

coatings

of

line

pipes

3.1.2.1 Bidder shallbea coatingapplicatorand shouldhave completedat leastone LinePipeCoating Contract using ThreeLayer (3L PE) External Coating and Internal epoxy of

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minimum 25 Km (or50%oflengthwhicheverislower)lengthofLinepipeinlastseven

(7)yearsreckonedfromthebidduedateasunder:

Bidder shouldhave completedMinimumone linepipe coating contractasperdetails

givenbelow:

i) Toqualifyfor36sizeandbelow executedlinepipesize30(762mm)orhigher.

ii) Toqualifyfor30sizeandbelow executedlinepipesize24(610mm)orhigher.

iii)To

qualify

for

24

and

18

size

executed

line

pipe

size

18(457mm)

or

higher

Theexternalandinternalcoatingshouldhavebeencarriedoutinthesamecontractorin

differentcontracts. Incasebidderdoesnotmeet thequalificationcriteria in respectof

internal coating specifiedunderClause 3.1.2.1 above,bidder shall furnish a certificate

from third party inspection agency (i.e. CEIL/ Lloyds/ BV/ DNV/ TUV/ ABS/ Moody)

certifyingthebidderscapabilityforinternalcoating.

3.1.2.2 Thebiddershallfurnishacertificateforproposedcoatingplantalongwithhisbid,asperFormat providedinthebiddingdocument,fromthirdpartyinspectionagency(i.e.CEIL/

Lloyds/BV/DNV/TUV/ABS/Moody)certifyingthattheplanthascapabilitytocoat line

pipescomplyingwithtechnicalrequirementsspecifiedinthebiddingdocument.

Thecertificate forcoatingplantqualificationfromoneofthe above reputedagencies

fortheproposedcoatingplantforsameorhighersizeasquotedfor,issuedinthelast12

months, reckoned from thebidduedate, foranyofGAILprojects shallbe considered

acceptableforthisprojectalso.

Noncompliancetothisrequirementwillmaketheplantliableforrejection.

3.1.2.3 A ForeignBidderwhodesires to submitbidunderOPTION2 forcoating shallhave torelocate his proposed coating plant to India, subject to their meeting corresponding

requirementstipulatedinMaterialRequisition. Insuchcase,thecoatingplantshallmeet

thequalificationcriteriaasstipulatedaboveatClause3.1.2.1&3.1.2.2.

3.1.2.4 IndianBidders,meetingthequalificationcriteriaasperclause3.1.2above,areallowedtorelocate the Coating plant within India, subject to their meeting corresponding

requirementstipulatedinMaterialRequisition.

3.1.3 Option3:Coatedlinepipes3.1.3.1 Bidderofferingcoatedlinepipesshallmeetallthequalificationrequirementsofbareline

pipesandofcoating,asindicatedabove.

3.1.3.2 Bids are also acceptable from consortium of Linepipe Manufacturers and coatingapplicatorssubjecttothefollowing:

(i) Totalnumberofconsortiummembersincludingleadershouldnotexceedtwo.

(ii) A member whoisalinepipemanufacturerandmeetstherequirementforsupply

of linepipeasperBQConly shallbenominatedas leaderoftheConsortiumand

thisauthorizationshallbeevidencedbysubmittingapowerofattorneysignedby

legallyauthorizedsignatoriesofbothmembers.

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(iii) In case of Consortium bid, the experience of each consortium member will be

considered for qualification for their respective areas based on 3.1.1 and 3.1.2

above.Documentary evidence regarding consortium arrangement as specified in

thebiddocumentshallbefurnished

(iv) Thebidsecurityshallbesubmittedbytheleaderonbehalfoftheconsortium.

(v)

Thebid

as

well

as

the

Agreement

(in

case

of

a

successful

bid),

shall

be

signed

by

the

leaderandtheothermemberofconsortiumsoastolegallybindbothmembersof

Consortium.

(vi) Theleadershallbeauthorizedtoincurliabilitiesandreceiveinstructionsforandon

behalfofanyandallmembersoftheConsortiumand forentireexecutionof the

Contract, including payment. All payments shall be released in favour of

Consortium.

(vii) BothmembersofConsortiumshallbe liablejointlyandseverallyfortheexecution

of the Contract in accordancewith the contract terms, and a statement to this

effect shallbe included in theauthorizationmentionedunderpara (ii)above,as

wellasinthebidandintheAgreement(incaseofasuccessfulbid)and

(viii) The Consortium Agreement shall be as per format enclosed in the Bidding

Documentandshallbesubmittedalongwiththebid.

3.1.3.3 Foreignbidders,biddingforOption3areallowedtodothecoatingofbarepipesintheiroverseasplant. TheyarealsoallowedtoimportbarepipesinIndiaandcoatthepipesin

Indiathroughtheirowncoatingplant,meetingthequalification criteria as per

clause3.1.2above,relocatedinIndia.

3.1.3.4 IndianBidders,meetingthequalificationcriteriaasperclause3.1.2above,areallowedtorelocate the Coating plant within India, subject to their meeting corresponding

requirementstipulatedinMaterialRequisition.

3.1.4 METHODOLOGYOFCAPABILITY&CAPACITYASSESSMENT

3.1.4.1 Methodology for capability assessment for bare linepipes through Demonstrationroute{referclause3.1.1.1(vii)}:

InordertoassessthecapabilityofIndianBidders,followingmethodologyshallbe

followed:

i) Thecapabilityshallbedemonstratedinthefirstattempt. Biddershallensurethat

completeplantandequipmentisinfullyoperationalconditiontocomplywiththeBid

Specifications. Nosecondattemptshallbepermitted.

ii) TheBiddershalldemonstratethepipemillscapability,fromwherelinepipesare

proposedtobemanufacturedandsupplied,byactuallymanufacturingatleast10

numbersofAPISpec5LPSL2qualitylinepipesforhydrocarbonservice,ofsametype

(withanaveragelengthof12metereach)ofequalorhigherintermsofdiameter,

gradeandwallthicknessasquotedfor,inamannersimilartonormalcontinuous

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productioninthepresenceofGAIL/EILaspertechnicalspecificationsgiveninthe

BiddingDocument.

iii) All the criticaloperations inmanufacturingof linepipes shallbe completedunder

GAIL/EILinspectionatvariousstagesofproduction.

iv) The

bidder

shall

submit

the

following

documents

in

their

bid:

a. Qualityplan/inspectionandTestPlanb. ManufacturingandControlprocedurec. WeldingProcedureSpecificationandconsumablecontrolProcedured. SeamannealingprocedureandcontroldetailsforElectricResistanceWeld

(ERW)pipes

e. Nondestructive testing procedure including auto UT forwelds / Coil /Plate.

f. Procedureforbursttest

v) The above documents shall complywith the technical requirements of the Bidding

Document and the bidder shall give categorical undertaking that mill offered for

capability demonstration fully complieswith the technical specifications given in the

BiddingDocument.

vi) Duringdemonstrationofpipemillscapability,onepipeofthepilotproduction,selected

atrandombytheGAIL/EIL,shallbesubjectedtoburstingtest. Forthispurpose,the

hydrostatic testpressure shallbegradually increased till thepipeburstsorequals to

the proof test pressure based on actual tensile strength. Bidder shall ensure that

adequatesafetymeasuresare inplacepriortoconductingthebursttestandshallget

theprocedureapprovedbyGAIL/EILpriortothetesttobeconductedalongwiththe

capabilityassessment.

Therupturehastobeexaminedonthepresenceofpossibleimperfection.

vii) Ifthemanufacturerhasthe intentiontoapplyrepairwelding intheproduction, it is

required that5%of the totalweld lengthof thepipe,onwhich thebursting test is

executed, is repairedaspercodeandapprovedprocedure (Notapplicable forERW

sincenorepairispermittedonERWpipes).

viii)Uponsuccessfulcompletionof10pipes*,any2pipesshallbeselectedatrandomby

GAIL/EIL representative forFirstDayProductiontestsaspertechnicalspecification

giveninthe Bidding Document.

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2. Indianbidder:TheDomesticBidders seekingqualificationunder clause3.1.1.1 i ) to3.1.1.1 vi)

shallbeconsideredforamaximumorderquantitybasedontheassessedcapacity

calculatedbyGAIL/EIL.

Assessment of capacity as per formula given below based on the data to be

furnished by bidder for their best past campaign (not less than ten consecutive

days)forproductionofAPI5LPSL2ofGradeX65orhighergradeforGradeX70

Pipes

and

API

5L

PSL

2

of

Grade

X

70

or

higher

grade

for

Grade

X

80

pipes

of

same

typeoflinepipefor,withinthelastseven(7)yearsreckonedfromthebidduedate.

(ReferFormatB).

C=Tc

XRDc

Where

CisCapacityinTonnageperday

Tcistotaltonnagerolledduringthechosenbestcampaign

Dcisdurationofcampaignindays

RisUncertaintyfactor,takenas0.8uniformlyforallmills.

Thisshallbeconvertedtotherequireddia,size.

(II) ForIndianbiddersintendingtogetqualifiedunderDemonstrationroute:

ThecapacityofDomesticBiddersseekingqualificationunderclause3.1.1.1vii)shall

beconsideredforamaximumorderquantitybasedonbestofproductioncapacity

assessedbyGAIL/EIL,inaccordancewiththeundermentionedthreealternatives:

i) Assessment of capacity as per formula given below based on the data to be

furnishedbybidder fortheirbestpastcampaign (not lessthantenconsecutive

days)forproductionofAPI5LPSL2ofGrade X65orhighergradeforGradeX70

pipesandAPI5LPSL2ofGradeX70 orhighergrade forGradeX80pipesof

sametype

of

line

pipe,

within

the

last

seven

(7)

years

reckoned

from

the

Bid

due

date.(ReferFormatB).

C=Tc

XRDc

Where

CisCapacityinTonnageperdayTcistotaltonnagerolledduringthechosenbestcampaign

Dcisdurationofcampaignindays

RisUncertaintyfactor,takenas0.8uniformlyforallmills.

Thisshall

be

converted

to

the

required

dia,

size.

ii) Timestudyofcriticaloperationsonacurrentongoingproductioncampaignofanysizeof API5LPSL2Grade X65orhighergradeforGradeX70Pipeand API

5LPSL2ofGrade X70pipeorhighergradeforGradeX80pipesof sametype.

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(ReferFormatC)whichshallbeconverted totherequireddiasizeasperthe

formulagivenati)above.

The offered campaign shall be demonstrated to GAIL/EIL representative for

capacity assessment bymanufacturing of 10 pipes continously in first attempt

withoutany failureofPipe/Mill.Failureofanyof thepipesatanystageshall

leadtorejectionoftotallotthusMillsassessedcapacityshallbetreatedaszero.

iii)

Timestudy

of

critical

operations

by

GAIL

and/or

its

authorized

agency

for

production of 10 numbers pipes during pilot production to demonstrate

capability of the bidder as per the formula given in the bid document (Refer

FormatD).

3.1.4.2.2 A bidders capacity shall be considered separately for different manufacturing

processes of pipes, as quoted for. Accordingly, annual production/ other details of

quotedtypeofpipesshouldbegivenseparately.Furtherthecapacitysoassessedshall

beconsideredforrespectivetypeofpipesonly.(FordetailspleasereferITB)

3.1.4.2.3 Biddershall

furnish

following

documents

in

respect

of

the

offered

campaign:

a) PurchaseOrder Copy covering Schedule of offered campaign alongwith details like pipe diameter, pipe manufacturing process, length,

thickness, date of commencement and completion of campaign,

number of days of campaign, total ordered quantity and applicable

specifications,forthemillfromwherethequotedquantityisintended

tobesupplied.

b) Inspection release note issued by the designated inspection authority

coveringthe

offered

campaign.

c) DailyProductionoutputandnumberofacceptedpipes

d) Onlyacceptedpipesshallbetakenintheofferedcampaign.

3.1.4.2.4 Thebiddershall furnishcompletedetailspertainingtothedatarequiredtoestablish

itsproductioncapacity.Itmaybenotedthatitismandatoryforthebidderstoprovide

details/datapertainingtotheabove,failingwhich,thebidsubmittedbythebidder,

willberejected.

B) ForCoating

CoatingPlant(forbothDomesticaswellasForeignBidders)Bidderscoatingplantcapacityshallbeassessedonthebasisofbestofferedcampaign(not

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lessthantenconsecutivedays)for3LPEcoatingofAPI5LPSL2(orequivalent)gradepipe

withinthe lastsevenyears reckoned from thebidduedate.Pastcampaigndatashallbe

furnishedforeachplantproposedforcoatingfromwherethequotedquantityisintended

tobesupplied.

The3LPEcoatingproductioncapacityforthequotedsizelinepipeshallbecalculatedasper

formulagivenbelow:

C= NxLxGxRTx 1000

Where

CisCapacityinKmperday

N isNumberofpipescoated(3LPE)duringofferedcampaign

L isAveragelengthofpipesinmeters

T isDurationofselectedcampaignindays

RisReliabilityfactortobetakenas0.8

GisDc/Dq

where Dq is the diameter in inches of the quoted line pipe and Dc is thediameter

in

inches

of

the

pipe

coated

in

the

offered

campaign.

Ratio

of

Dc/Dq

shallnotexceed1.4.

Incaseofrelocationofthecoatingplant(s)underOption2,theplantcapacity

shallbederatedto80%ofcapacityassessedbasedonbestcampaign.

Biddershallfurnishfollowingdocumentsinrespectoftheofferedcampaign:

a) Purchaseordercopy,Scheduleof theofferedcampaign.Detailsshallincludepipe

diameter,pipemanufacturingprocess, length, thickness,dateofcommencement

andcompletionofcampaign,numberofdaysofcampaign,totalorderedquantity,

applicable specifications and traceability documents for the plant proposed for

coatingfromwherethequotedquantityisintendedtobesupplied.

b) Inspectionreleasenoteissuedbythedesignated inspectionauthoritycoveringthe

offeredcampaign.

c) DailyProductionoutputandnumberofacceptedpipes

d) Onlyacceptedpipesshallbetakenintheofferedcampaign.

The bidder shall furnish complete details pertaining to the data required to

establish its production capacity. It may be noted that it is mandatory for the

bidderstoprovidedetails(asperFormatE)/datapertainingtotheabove,failing

whichthe

bid

submitted

by

the

bidder,

will

be

rejected.

C) Forsupplyofcoatedpipes(forbothdomesticaswellasforeignbidders)

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Bidderscapacityforsupplyofcoatedpipesshallbelimitedtolowestofthecapacity

assessedforpipemanufacturingandcoatingcapacity.Biddershallfurnishthedocumentsin

respectoftheofferedcampaignforassessmentofmillcapacityandcoatingcapacity

respectivelyasspecifiedaboveunder(A)and(B)above.

3.1.4.2.5 Bidderscapacityforbarepipesshallbeconsideredseparatelyfordifferentmanufacturing

processesofpipes,asquoted for.Accordingly, annualproduction/otherdetailsofquoted

type of pipes should be given separately. Further, the capacity so assessed shall be

consideredfor

respective

type

of

pipes

only.

3.1.4.2.6 TheorderforitemsS.No.1.01,1.02,1.05,2.01and2.02willbelimitedtothelowestof

thecapacityassessedofpipemanufacturing,CoatingandFinancialCriteria.Ordermaybe

placedonmorethanonevendorduetocapacityforpipemanufacturing,coatingand

financialcriteriastipulated. ThuspricesquotedbyBiddersfortheseitemsshallbevalid

forpartorder.

3.2 FINANCIALCRITERIA:

3.2.1 Turnover

TheMINIMUM ANNUAL TURNOVERofthebidderaspertheauditedfinancialresultsi.e.2006

2007,20072008,20082009 oryearending December2006,2007,2008,inatleastoneofthe

threeprecedingfinancialyearsuptothebidduedate,shallbeasunder:

Item No. Minimum Annual Turnover Requirement

For Indian Bidders (In INR Crore) For Foreign Bidders (In Million US$)

Option-1 Option-2 Option-3 Option-1 Option-2 Option-3

1.01 74.09 18.52 92.61 16.06 4.01 20.07

1.02 90.02 21.28 111.3 19.51 4.61 24.12

1.03 & 1.04 38.88 6.82 45.7 8.43 1.48 9.91

1.05 30.37 8.52 38.88 6.58 1.85 8.431.06 20.85 5.45 26.3 4.52 1.18 5.7

1.07 & 1.09 9.6 2.1 11.7 2.08 0.46 2.54

1.08 2.4 0.47 2.87 0.52 0.1 0.62

2.01 186.7 46.78 233.47 40.46 10.14 50.6

2.02 44.5 9.6 54.09 9.64 2.08 11.72

2.03 & 2.04 12.14 2.37 14.51 2.63 0.51 3.15

3.01 1.8 0.57 2.37 0.39 0.12 0.51

3.02 & 3.03 20.42 4.63 25.05 4.42 1 5.43

4.01 6.15 0.95 7.1 1.33 0.21 1.54

5.01, 5.02,5.03 & 5.04

2.83 -- -- 0.61 -- --

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3.2.2 Networth

Networthofthebidder/eachmemberoftheConsortiumshallbepositiveasperthelast

auditedfinancialstatementi.e. forfinancialyear20082009oryearendingDecember2008

3.2.3 Workingcapital

TheMINIMUMWORKINGCAPITALofthebidderaspertheauditedfinancialresultsstatement for

theyear

2008

2009

or

year

ending

December

2008

shall

be

as

under:

Item No.

Minimum Working Capital RequirementFor Indian Bidders (In INR Lac) For Foreign Bidders (In '000 US$)

Option-1 Option-2 Option-3 Option-1 Option-2 Option-3

1.01 1481.70 370.50 1852.20 3211.31 802.99 4014.30

1.02 1800.40 425.62 2226.02 3902.04 922.45 4824.48

1.03 & 1.04 777.60 136.47 914.07 1685.31 295.77 1981.08

1.05 607.30 170.39 777.69 1316.21 369.28 1685.49

1.06 416.90 109.07 525.97 903.55 236.40 1139.95

1.07 & 1.09 191.90 42.07 233.97 415.91 91.18 507.09

1.08 47.90 9.40 57.30 103.81 20.38 124.20

2.01 3733.90 935.52 4669.42 8092.54 2027.56 10120.11

2.02889.90 191.93 1081.83 1928.70 415.96 2344.66

2.03 & 2.04 242.80 47.48 290.28 526.22 102.90 629.13

3.01 36.00 11.40 47.40 78.02 24.70 102.73

3.02 & 3.03 408.30 92.63 500.93 884.92 200.75 1085.67

4.01 122.90 19.05 141.95 266.36 41.29 307.66

5.01, 5.02,5.03 & 5.04

56.60 -- -- 122.67 -- --

3.2.4 If the biddersworking capital is inadequate, the bidder should supplement thiswith a

letterfrom

the

bidders

bank,

having

net

worth

not

less

than

Rs.100

Crores/

US$

25

million,

confirmingtheavailabilityofthelineofcredittocovertheinadequacyofworkingcapitalto

meettheworkingcapitalrequirement.

3.2.5 IncasebidderquotesformorethanoneiteminanyoneormoreGroups,therequirementofannualturnoverandWorkingCapitalshallbeoncumulativebasis,forthequoteditems.

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1.08 4.79 0.94 5.73 10.38 2.04 12.42

2.01 373.39 93.55 466.94 809.25 202.76 1012.01

2.02 88.99 19.19 108.18 192.87 41.60 234.47

2.03&2.04 24.28 4.75 29.03 52.62 10.29 62.91

3.01 3.60 1.14 4.74 7.80 2.47 10.27

3.02&3.03 40.83 9.26 50.09 88.49 20.07 108.57

4.01 12.29 1.91 14.20 26.64 4.13 30.77

5.01,5.02,

5.03&5.045.66 12.27

5.2 IncasebidderquotesforitemsforOption1andOption2,therequirementofbidsecurityshallbeoncumulativebasis.

5.3 BidSecurity

against

particular

item

shall

be

submitted

for

full

quantity

of

item

irrespective

ofquantityquoted.

6 PREBIDMEETING

6.1 PrebidMeetingshallbeheldatGAIL(India)Limited,GAILBhawan,16,BhikaijiCamaPlace,NewDelhi110066.Biddersortheirauthorizedrepresentativesarerequestedtoattend

thePreBidMeetingsothattheirqueries,ifany.relatedtotheBidDocumentandScopeof

Workcanbeaddressedduringthemeeting. Sessionwillalsobearranged forbidders to

demonstratetheeTenderingsystemtofacilitatebidderstosubmittheBidOnline.

6.2 Thebiddersarerequestedtosendclarifications,ifany,bycourierorbyfaxorbyemailto

reachEIL/GAIL

at

least

four

days

before

the

pre

bid

meeting.

The

clarifications

shall

be

providedduringtheprebidmeeting.

6.3 Nonattendanceoftheprebidmeetingshallnotbeacauseofdisqualificationofthebidder.

7 ZERODEVIATIONBIDS

ThisisaZERODeviationBiddingProcess. Bidderistoensurecomplianceofallprovisions of

theBiddingDocumentandsubmithisbidaccordingly. Bidswithanydeviationtothebid

conditionsshallbeliableforrejection.

8 BIDSFROMCONSORTIUM

8.1 Bidsareacceptable fromconsortium forOption3subject tomeeting the requirementasdetailedinIFB. ForOption1andOption2,Consortiumbidsarenotacceptable.

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8.2 ABiddershallsubmitonlyonebidincludingbidasmemberofconsortium,ifany. ABidderwhosubmitsorparticipatesinmorethanonebidwillcauseallthebidsinwhichthebidder

hasparticipatedtobedisqualified.

9 GENERAL

9.1 PaymentofbiddocumentfeeshallbebyCrossedBankDraftfromafirstclassInternationalBankoranIndianNationalizedBank,infavourofGAIL(India)Limited,payable atNewDelhi

andthe

same

shall

be

submitted

in

physical

form

along

with

EMD.

The

bid

of

any

bidder

shallbeconsideredonly ifthebid isaccompaniedbytheprescribedbiddocument fee in

theformofdemanddraftalongwithEMD. Incaseofaconsortium,thebiddocumentmay

bepurchasedbyanyofthemembersoftheconsortium,onbehalfoftheconsortium.

9.2 Incaseany Indianbidderbidsthroughdemonstrationrouteforcapabilityand/orcapacityassessmentof theirmill, thebiddershallbe required todeposit,a feeofRs.10,00,000/

(RupeesTenLakh),permillpertypeofpipe,byademanddraftinfavourofEngineersIndia

Ltd., New Delhi. This fee shall be non refundable, irrespective of the outcome of the

demonstration.

9.3 Bidder can download the Bid Document from EILs websitehttp://www.indianprocessplants.com or GAILs website http://www.gailonline.com,

GAILseTendering

website

https://etender.gail.co.in

and

https://tenders.gov.in.

However,biddershavetosubmit theirbidsonlythroughetenderingwebsiteofGAIL.

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

documenthavenotbeenalteredormodified.

9.4 Noextensioninthebidduedate/timeshallbeconsideredonaccountofdelayinreceiptofanydocumentbymail.

9.5 ThefollowingdocumentsinadditiontouploadingthebidontheGAILseTendering websiteshallalsobesubmittedinOriginalinphysicalform:

i)

DemandDraft

towards

Bid

Document

Fee.

ii) EMD/BidBond

iii) PowerofAttorney

iv) Demonstrationfee(ifapplicable)

v) IntegrityPact

9.6 SmallscaleIndustriesregisteredwithNSICandCentralGovernmentPSUsarenotrequiredtopaythebiddocumentFee.However,IndustriesregisteredwithNSICshallprovidenecessary

documentary evidence,whereas PSUs shall submit declaration to this effect that they are

CentralPSUandareeligibleforgettingbiddocumentsfreeofcost.

9.7 GAIL/EILreservestherighttocarryoutcapabilityassessmentofthebidderincludingreferral

toin

house

information.

9.8 GAIL/EILwillnotberesponsibleorliableforcostincurredinpreparation&deliveryofbids,regardlessoftheconductoroutcomeofthebiddingprocess.

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9.9 Biddocumentisnontransferable.Bidsreceivedfrombidders inwhosenameBidDocumentfeehasbeensubmittedshallonlybeconsidered. BiddermustsubmittheBidDocumentFee

intheirname. BidDocumentFeewillbesubmittedbyBiddersasperClause9.5above.

9.10 Bidsreceivedafterstipulated lastdateandtime,duetoanyreasonswhatsoever,includingpostaldelays,willnotbeconsidered.

9.11 GAIL/EILwillfollowpurchasepreferenceand/orDomesticpricepreferencepolicies as

perprevailing

guidelines

of

Government

of

India.

9.12 Biddershouldnotbeunderliquidation,courtreceivershiporsimilarproceedings.

9.13 BiddershouldnotbeblacklistedwithanyPSUandshouldnotbeonholidaylistofGAIL/EIL.

9.14 BidssentthroughFax/Email/Computerfloppyshallnotbeaccepted.

9.15 GAIL/EIL reserves the right to reject any or all the bids received at its discretionwithoutassigninganyreasonwhatsoever.

ThisInvitation

of

Bids

(IFB)

is

an

integral

and

inseparable

part

of

the

Bid

Document.

Telefax:00911126191714,26167664 Dy.GeneralManager(C&P)

Phone: 00911126762082/2002/2071 EngineersIndiaLimitedNewDelhi

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Format - ALINE PIPE MANUFACTURING MILL CAPABILITY ASSESSMENT

This is to certify that M/s _____________________________________ reference plants production line__________________ has following manufacturing facilities to manufacture ________________ type of linepipes as per API 5L PSL2 for hydrocarbon service:

S.No. DESCRIPTION INSPECTION AGENCY

OBSERVATION REMARKS ONCONFORMITY

A. GENERAL INFORMATION

1.0 Detailed description of Organisation (Structure, number ofemployees, facilities, equipments, etc.) concerning thefollowing :

1.1 Overall structure of Mill Organisation -

1.2 Line Pipe production facilities and capacity

1.3 External and Internal coating facilities & capacity

1.4 Testing Laboratories

1.5 Qualify Control/ Quality Assurance (QB/QC) :

Type and location of the testing facility and step-by-stepoperations followed to achieve high quality product as pertechnical specifications.

1.6 Non-Destructive testing facilities.

1.7 Latest Audit certified documents performed duringproduction by one of the International Inspection Agencies(as listed in IFB/ITB).

2.0 Company shall have valid ISO 9001-2000 certificate andestablished quality manual.

B. FABRICATION & INSPECTION PROCEDURES

1.0 Give detailed description of the fabrication process toproduce Line Pipes as per technical documents.

1.1 Inspection of raw material (Plates/ Coils)

1.2 Forming of the Plates/ Coils

1.3 De-coiling and Inspection

1.4 Edge preparation

1.5 Forming

1.6 Welding

1.7 Testing

2.0 Following shall be certified for Mill Capability :

2.1

Inspection of Raw Material (Plates/ Coils)

The mill shall have an inbuilt edge machining and ultrasonictesting to test and record both sides of the plate/ coil edgesand body as per the bid specifications.

2.2Forming of the Plates/ Coils

During forming and welding the machine should havetracking system to control welding groove and edge offsets.

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S.No. DESCRIPTION INSPECTION AGENCY

OBSERVATION REMARKS ONCONFORMITY

2.3Welding

Pipe mill shall have a continuous tack welding arrangementfor better dimensional control, minimum repairs and higherproduction.

Weld procedure qualified shall ensure testing of Impact at

() 29 deg. C. for Weld and HAZ.

2.4

2.4.1

Inspection & Testing

Type and location of the testing facility and step-by-stepoperations followed to achieve high quality product as pertechnical specifications.

2.4.2 List of all relevant NDT procedures (including acceptancecriteria)

2.4.3 List of NDT qualified personnel with valid ASNT-1Acertificates for level III and Level II operators.

2.4.4 Ultrasonic machines being used should ensure tracking of

weld seam during testing and representing defects on aprintout.

2.4.5 All instruments used shall have a valid calibrationcertificates.

2.4.6 Capability of mill and procedure followed to produce pipeswithin the technical specifications.

2.4.7 HSAW mill shall ensure, prove and establish adequatemethodology that the residual stresses are within acceptablelimits (at least equal to cold expanded pipes).

2.4.8 Capability of Mill and procedure followed to perform Impacttest at () 29 / (-40) deg. C. as per the bid specifications.

2.4.9 Work instructions and approved procedures to be displayedat each and every work centers for ready reference.

2.4.10 ERW mill shall have the facilities, controls and recordingfacility for welder frequency, On-line seam annealing, current& Voltage.

2.4.11 Various procedures established shall have approval fromInternational Inspection Agencies as listed in IFB/ ITB

Overall acceptability :

ACCEPTABLE / NOT ACCEPTABLE

For & On behalf of GAIL / EILSignatureNameDesignation

Agencys name & Seal

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Format - B

Capacity assessment for production of _(size: Dia X Thk)_ LSAW /HSAW /ERW PipesBest campaign (continuous 10 days production) shall meet the following requirements:

1. Pipes shall be as per API 5L and GR as per Bid Specification or higher, PSL2.

2. Campaign duration shall be minimum 10 days continuous working.3. Any intervening holiday/ break down during the operation of selected campaign shall be counted as working days for th4. Documentary evidence, duly certified by Chartered Engineer, shall be submitted for the selected campaigns. Minimum

Purchase Order, Copy of Third Party Inspection Release Note and Daily Production Report.5. Campaign shall cover accepted pipes only, ready for dispatch from the first to the last day of the campaign.

Sr.No.

Project /Country

ClientsAddress /ContactpersonName,Tel No.

PO No.and Date

Pipe Size(OD xThk)

Spec &Grade

Tonnage Type ofPipe

Campaign Duration PWt/

Pipe.No. ofPipes

StartDate

FinishDate

TotalNo. ofdaysDc

ToTonn

T

1.

6. Capacity thus achieved shall be multiplied by reliability factor R of 0.8 to arrive at capacity C in Ton/day.C= Tc / Dc R

7. Capacity C thus achieved shall be converted to the required/ quoted diameter size.

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DATA FOR CAPACITY ASSESSMENT FOR PRODUCTION OF _(size: dia X thk, type)_PIPE BY CONDUCTING TIME STUOF ANY ONGOING PRODUCTION CAMPAIGN AT BIDDER PIPE MILL

Activity

Pipe No.

Plate/Coiledge

milling

Body UT(Plate/Coil)

PipeForming

RootWelding

WeldingInside/Outside

MechanicalExpansion

Pipe endpreparation

Hydrotest

MMP

1st Pipe2nd Pipe3rd Pipe4th Pipe5th Pipe6

thPipe

7th

Pipe8th Pipe9th Pipe

10

th

PipeAverageCapacityin Km perday C (campaign) = 60 x 24 x 12 x / T x 1000

Notes:1. Pipe for ongoing campaign shall be as per API 5L Gr. X- 65 or higher PSL 2 quality.2. 12 is the average length of the pipe and T is the maximum time (average) in minutes, for any of the above listed cr

uniformly taken for all mills.3. Time taken shall be from the beginning of an operation till the commencement of the same operation for the next pipe4. Above stages are indicative only.5. For ERW pipe, total time shall be taken into account from Coil feed to final 10th pipe cutting which shall be divid

preparation shall remain same.

6. Capacity C thus achieved shall be converted to the required/ quoted diameter size.

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CAPABILITY/ CAPACITY ASSESSMENT BY PILOT PRODUCTION OF 10 NOS _(size: dia X thk API 5L As per Bi

Activity

Pipe No.

Plate/Coiledge

milling

Body UT(Plate/Coil)

PipeForming

RootWelding

WeldingInside/Outside

MechanicalExpansion

Pipe endpreparation

Hydrotest

MUfoB

st Pipen

Piper Pipeh

Pipe Pipe Pipeh Pipe Pipe Pipe0 h Pipe

Average

Capacityn Km peray

C (campaign) = 60 x 24 x 12 x / T x 1000

Notes:1. 12 is the average length of the pipe and T is the maximum time (average) in minutes, for any of the above listed

uniformly taken for all mills.2. Time taken shall be from the beginning of an operation till the commencement of the same operation for the next pip3. Above stages are indicative only.4. For ERW pipe, total time shall be taken into account from Coil feed to final 10th pipe cutting which shall be divid

preparation shall remain same.5. Capacity C thus achieved shall be converted to the required/ quoted diameter size.

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DATA FOR CAPACITY ASSESSMENT FOR COATING PLANT BASED ON BEST OFFERED CAMPAIGN (NOT LESS T3LPE COATING OF API5L GRADE PIPE WITHIN LAST SEVEN YEARS AT BIDDER PIP

THE 3LPE COATING PIPE PRODUCTION CAPACITY FOR THE QUOTED SIZE Dq LINE PIPE SHALL BE CALCULATED AActivity

Pipe No.

CLIENT PIPESIZE

GRADE PROJECT INSPECTIONAGENCY

INSPECTIONRELEASE NOT

stDAY

nd DAYrd

DAY DAY DAYh

DAY DAY DAYh DAY0 DAY

AverageC in KM/DAY = NXLXGXR

TX1000Notes:

1. C= CAPACITY IN KM per DAY2. N= Number of Pipes released after coating (3LPE) during offered campaign3. L= Average length of pipes in meters4. T= duration of selected campaign in days

5. R= reliability factor to be taken as 0.86. G=DC//Dq Where DC is the diameter in inches of the pipe coated in the offered campaign and Dq is the diameter DC//Dq shall not exceed 1.4

n case of relocation( for foreign Bidder only) of Coating plant(s) under Option 2, the plant capacity shall be de-rated to 8ampaign.

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INDEX

1. SCOPE OF BID:2. ELIGIBLE BIDDERS:3. ONE BID PER BIDDER4. COST OF BIDDING5. SITE VISIT6. CONTENT OF BIDDING DOCUMENT7. CLARIFICATION ON BID DOCUMENTS8. AMENDMENT OF BID DOCUMENTS

9. LANGUAGE OF BID10. DOCUMENTS COMPRISING THE BID11. BID PRICES

12 BID CURRENCY:13 PERIOD OF VALIDITY OF BIDS14 BID SECURITY15 PRE-BID MEETING16 FORMAT AND SIGNING OF BID17 ZERO DEVIATION:18 E-PAYMENTS19 AGENTS/CONSULTANTS/REPRESENTATIVES/RETAINERS/ASSOCIATES20 SEALING AND MARKING OF BIDS21 DEADLINE FOR SUBMISSION OF BID

22 LATE BIDS / UNSOLICITED BIDS / BID SUBMISSION AT OTHER PLACE23 MODIFICATION AND WITHDRAWAL OF BIDS24 BID OPENING25 PROCESS TO BE CONFIDENTIAL26 CONTACTING THE EMPLOYER/CONSULTANT27 EXAMINATION OF BIDS AND DETERMINATION OF RESPONSIVENESS28 CONCURRENT COMMITMENTS29 DELETED30 PRICE BID OPENING31 ARITHMETIC CORRECTIONS32 CONVERSION TO SINGLE CURRENCY33 EVALUATION AND COMPARISON OF BIDS34 OTHER CRITICAL POINTS FOR EVALUATION OF OFFER ARE AS UNDER35 DOMESTIC PRICE PREFERENCE:

36 DEEMED EXPORT BENEFIT37 AWARD OF WORK.38 QUANTITY VARIATION:39 EMPLOYER/CONSULTANT'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY BID40 NOTIFICATION OF AWARD41 SIGNING OF AGREEMENT42 PERFORMANCE GUARANTEE43 REPEAT ORDER44 CORRUPT AND FRAUDULENT PRACTICES45 WAIVER OR TRANSFER OF THE AGREEMENT46 ORDER OF PRESIDENCE47 EXPENSES OF DEMONSTRATION48. EMPLOYMENT VISA FOR FOREIGN NATIONALS

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INSTRUCTIONS TO BIDDERS (ITB)

GENERAL

1. SCOPE OF BID:

1.1. The Employer/Purchaser/Owner/GAIL as defined in the General Conditions of Contract,hereinafter "the Employer" wishes to receive bids as described in the Bidding Documents.

1.2. SCOPE OF BID: The scope of work shall be as defined in the bidding document.

1.3. The successful bidder will be expected to complete the Scope of Bid within the periodstated in special conditions of contract.

1.4. Throughout this bidding documents, the term "bid" and "tender" and their derivatives("bidder/ tenderer", "Bid/tendered/tender", "bidding/tendering", etc.) are synonymous, andday means calendar day. Singular also means plural.

2. ELIGIBLE BIDDERS:

2.1 Documents Establishing Bidder's Qualification

2.1.1 Bidder shall, as part of their bid, submit a written power of attorney authorizing thesignatory of the bid to commit the bidder.

2.1.2 Pursuant to qualification criteria specified in Invitation for Bids (IFB) the bidder shall furnishall necessary supporting documentary evidence to establish the bidders claim of meeting

qualification criteria.2.1.3 The bidder shall furnish, as part of his bid, documents establishing the bidder's eligibility to

bid and his qualifications to perform the contract if his bid is accepted.

2.1.4 The documentary evidence of the bidder's qualifications to perform the contract if his bid isaccepted, shall establish to the OWNER'S/CONSULTANT'S satisfaction that, the bidderhas the financial, technical and productions capacity necessary to perform the contract.

2.2 The invitation of bid is open to any bidder.

2.3 A bidder shall not be affiliated with a firm or entity:

(i.) that has provided consulting services related to the work to the EMPLOYER during the

preparatory stages of the works or of the project of which the works form a part, or

(ii.) that has been hired by the Employer as engineer/consultant for the contract.2.4 The bidder shall not be under a declaration of ineligibility by EMPLOYER for corrupt or

fraudulent practices as defined in ITB clause no. 44.

2.5 The bidder is not put on holiday by GAIL or EIL or black listed by any GovernmentDepartment/ Public Sector on due date of submission of bid. If the documents were issuedinadvertently / downloaded from website, offers submitted by such bidders shall not beconsidered for opening / evaluation / award.

3. ONE BID PER BIDDER

3.1. A Bidder shall submit only one bid in the same bidding process. A Bidder who submits orparticipates in more than one bid will cause all the proposals in which the bidder hasparticipated to be disqualified.

3.2. Alternative bids are not acceptable. Bidder can quote for various options as described inthe MR subject to the conditions laid down in IFB.

3.3. Bare Pipeline Manufacturer, domestic as well as foreign have the option to form aconsortium with a firm for coating work to offer coated pipes at various storage yards.Accordingly bids are acceptable from Consortium only for Option - III subject to theconditions laid down in IFB. However, the consortium members cannot be changed afterthe due date and time for submission of bids.

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4. COST OF BIDDING

4.1. The bidder shall bear all costs associated with the preparation and submission of the bid,and EMPLOYER (GAIL) / CONSULTANT (EIL), will in no case be responsible or liable forthis cost, regardless of the conduct or outcome of the bidding process.

5. SITE VISIT

5.1. The bidder is advised to visit and examine the site or / locations of warehouse and itssurroundings and obtain for itself, at its own responsibility, all the information that may be

necessary for preparing the bid and entering into the Contract. The cost of visiting the siteshall be at the bidder's own expense.

5.2. The bidder or any of its personnel or agents will be granted permission by the Employer toenter upon its premises and land for the purpose of such visits, but only upon the expresscondition that the bidder, its personnel, and agents will indemnify the Employer and itspersonnel and agents from and against all liabilities in respect thereof, and will beresponsible for death or personal injury, loss of or damage to property, and any other loss,damage, costs, and expenses incurred as a result of the inspection.

BIDDING DOCUMENTS

6. CONTENT OF BIDDING DOCUMENT

6.1 The Bid Documents hosted on GAIL and EIL Websites are as stated below and should be

read in conjunction with any addenda issued/hosted in accordance with clause 8 of ITB:Volume I : Commercial

Volume II : Technical-Material Requisition MR. No. A027-010-QB-MR-9010 Rev. C

6.2 The bidder is expected to examine IFB, e-bidding guidelines on GAIL website, allinstructions, form/formats, terms, specifications and drawings etc., enclosed in the biddocuments. The invitation for bid (IFB) together with all its attachment thereto, shall beconsidered to be read, understood and accepted by the bidder. Failure to furnish allinformation required by the Bid Documents or submission of a bid not substantiallyresponsive to the Bidding Documents in every respect will be at bidder's risk and mayresult in the rejection of the Bid.

7. CLARIFICATION ON BIDDING DOCUMENTS

7.1 A prospective bidder requiring any information or clarification of the Bidding Documents,may notify the Employer/Consultant in writing by e-mail/fax/post at Consultant's mailingaddress indicated in the Bid Document (Engineers India Ltd., Engineers India Bhawan, 1Bhikaiji Cama Place, New Delhi - 110066, India. Fax No. 0091 11 26167664 / 26191714)as specified under Clause No. 1.2.9 Salient Features of Bid Document of IFB.

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executive having authority to attend the un-priced and price bid opening onspecified dates and venue as per format F-5.

i. Confirmation of no deviation as per Format F-6.

j. Certificate as per Format F-7 for confirming the Government of India is notparty of Agreement.

k. Details of similar work done during past seven years as per Form F-8.

l. Concurrent commitments as per form F-9 and shall give manufacturing andexecution plan for the pipes being offered by the bidder considering the concurrentcommitments.

m. All necessary documents to establish the qualification as per IFB.

n. Certificate of Non-Involvement of Agent as per Format F-11, if no Agent /Consultant / retainer / Associate is involved.

o. Proforma for details of Indian Agents as per Format F-12 ifAgent/Consultant/Retainer/ Associate is involved.

p. Capability assessment data as per Format A and 3 LPE / Internal Coating MillCapability Assessmentas format F-14

q. Duly completed capacity assessment format B, C , D & E as applicable.

r. Check list duly filled in as per Format F-13

s. In case of consortium bid for Option - III, the bid shall contain the followingdocuments:

i) Power of Attorney in original in physical form signed by legallyauthorized signatories of all the members evidencing authorisation to oneof the member as nominated leader in the consortium as per Clause 3.3.2to ITB.

ii) Consortium Agreement / MOU in original in physical form entered into byall members as per Clause 3.3.6 of ITB.

t. Any other information/ details required as per Bidding Documents.

Note: All pages of the bid are to be signed and sealed by authorised person of the

bidder.

10.3. E-Envelope-II: Superscribing "Price Bid - Not to be Opened with

Techno-Commercial Un priced Bid"- (PART-II)

10.3.1. Part II : Price Bid

10.3.1.1. Part - II shall contain original Schedule of Prices duly filled in, e-signed and stampedon each page.

10.4. Envelope III; Superscribing "Bid Security"- PART-III, in physical form.

10.4.1. Part-III: Bid Security in original physical form.

10.4.1.1. Part-III shall contain one original and five copies of Bid security in separatesealed envelopes.

10.5. Envelope IV; Superscribing "Bidding Document Fee"- PART-IV, in physical form.

10.5.1 Part-IV : Bidding Document Fee.

10.5.1.1 Part-IV shall contain original Bidding Document Fee as explained in the IFB.

10.6. Envelope V: Superscribing Demonstration Fee Part-V, in Physical Form

10.6.1 Part-V : Demonstration Fee

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10.6.1.1 Part V shall contain original demand draft for Demonstration fee as explained in clause

47 of ITB

10.7. Envelope VI : Superscribing Power of Attorney Part VI, in physical form.

10.7.1 Part- VI shall contain original Power of Attorney as explained in clause 10.2.1 (c) & (s)

11. BID PRICES

11.1. The bidder shall e-quote Bid Prices on the appropriate format for "PriceSchedule" enclosed as part of Bidding Document.

11.2. Deleted

11.3. Price quoted by the bidder, shall remain firm, fixed, and valid until completion ofthe contract performance and will not be subject to any variation, except statutoryvariation pursuant to relevant provisions in clause 11.7.1.2.2, 11.7.1.2.4,11.7.2.2.2, 11.7.2.2.4, 11.7.3.2.2, 11.7.3.2.4, and 11.8.3.4.4 of ITB.

11.3.1 Within the contractual delivery period, if any new taxes and or duties come intoforce from the Central / State Government Authority, the same will be reimbursedagainst documentary evidence to Bidder.

11.4. The bidder shall e-quote the price for item in the Price Schedule after carefulanalysis of cost involved for the performance of complete work considering all partsof the Bidding Documents. In case, any activity though specifically not covered but isrequired to complete the work as per scope of work, scope of supply, specifications,standards, drawings, GCC, SCC or any other part of Bidding Document, the pricesquoted shall deemed to be inclusive of cost incurred for such activity.

11.5. The Employer is entitled to Project rate of Customs Duty for imports made for theDabhol-Bangalore Pipeline Project. The present rates of Customs duty for Importsare basic duty (Project rate) @ 5% + CVD & Ed. Cess @10.3% + 3% ED. Cess +4% SAD as applicable.

The bidder while quoting the price may consider the project rate of custom duty.However, in case bidder is allowed, vide any other notification, a lower rate ofcustom duty than project rate of customs duty for import of raw materials andcomponents viz. plates/coils, welding material, coating material, bare pipes, coatedpipes etc., in such case bidder may consider the same and quote accordingly. Biddershall ascertain the applicable rate of customs duty and shall be solely responsibletowards applicability and correctness of such rates. The evaluation and ordering shallbe carried out based on the rates of customs duty considered by the bidder. However,in case of wrong classification, no variation including statutory variation of CustomsDuty will be payable extra. The bidder(s) must indicate quantity, CIF value & rate ofcustom duty considered in the Price Schedule.

If Bidder has considered Customs duty for import content other than the Project rateof Customs duty in their offer, then statutory variation on Customs duty, shall bepayable extra on the Project rate of Customs duty or the rate of Customs duty

considered by the Bidder, whichever is lower.

The Employer's responsibility is only limited to furnishing of the necessary certificateto the bidder in order to enable bidder to obtain Essentiality Certificate from hisAdministrative Ministry for availing the Project rate of Customs Duty. However, thiscertificate shall not be issued for import of Line Pipes to Indian Bidders.

11.6. a) The Employer will not issue any concessional form for CST/ LST/VAT.

b) Bidders are required to provide CENVATABLE invoices with respect to Excise

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Duty, VAT, WCT and Service Tax in all cases of Option - I, Option - II & Option -III which shall be raised as per the details provided in detailed Order/ Letter ofAcceptance.

11.6.1 a) Indian Bare line pipe manufactures will furnish Cenvatable Excise Invoice for supplyof the line pipes from their mill, to Coaters quoting under Option-2, in order to enable thecoaters to avail credit of the same. The present rate of Cenvatable Excise duty includingEducation cess is 10.3% for supply of bare line pipes from non-EOU/non-SEZ Indianmills.

Subject to statutory variation, in case the Cenvatable Excise Invoice from the bare linepipe manufacturer is found to be of a rate lower than the rate specified by the line pipemanufacturer in his bid, the difference will be deducted by GAIL from the bills of bareline pipe manufacturer. The amount so deducted will be paid to the affected Coaterquoting under Option-2.

b) In case a Line Pipe manufacturers plant is located in an EOU area or SEZ or anyother geographical area in India eligible for a different or concessional rate of ExciseDuty, the manufacturer shall detail the applicable Excise Duty (Clearly distinguishingbetween Cenvatable and Non-Cenvatable Excise Duty) along with documentary

evidence including appropriate notifications.

Subject to statutory variation, in case the Cenvatable Excise Invoice from the bare linepipe manufacturer is found to be of a rate lower than the rate specified by the line pipemanufacturer in his bid, the difference will be deducted by GAIL from the bills of bareline pipe manufacturer. The amount so deducted will be paid to the affected Coaterquoting under Option-2.

11.6.2 GAIL will provide Cenvatable documents for CVD including education cess (paid to thecustom authorities for imported bare line pipes), to coater quoting under Option-2, in orderto enable the coaters to avail credit of the same. The present rate of Cenvatable CVDincluding Education Cess is 10.3% for import of bare line pipes.

Subject to statutory variation, in case the cenvatable CVD paid by GAIL is at a rate lowerthan the rate specified above, the difference will be paid by GAIL to the affected Coaterquoting under Option-2.

11.7. Indian Bidders shall indicate the following as per Price Schedule:

11.7.1. Option-I: Supply of bare line pipes

11.7.1.1. Ex-Works unit and total price of bare pipes including packing, forwarding andcharges towards loading of pipes on Truck / Trailer to be arranged by CoatingContractors (such price to include all costs as well as duties and taxes paid orpayable on components and raw materials incorporated or to be incorporated inthe goods, inspection testing and loading on coating contractor's carrier etc.) but

excluding applicable taxes and duties on finished goods.

11.7.1.2. The bidder shall indicate the following separately:

11.7.1.2.1. CIF value of import for raw material and components incorporated or to be incorporatedin the goods. The bidder shall provide description of such material, quantity, rate, valueetc.

11.7.1.2.2. Customs duty (rate) considered on above CIF value of import for raw materia land components as per clause 11.7.1.2.1. The statutory variation in Customs duty,on CIF value indicated as per Clause 11.7.1.2.1 above, within the contractual delivery

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period shall be to Employer's account against submission of the documentaryevidence. However, any increase in the rate of Customs duty beyond the contractualcompletion period shall be to bidder's account. In case of wrong classification, novariation including statutory variation of Customs Duty will be payable extra. Anydecrease in the rate of Customs duty shall be passed on to the Employer.

11.7.1.2.3. Unit price of finished goods including packing and forwarding charges but

excluding applicable taxes and duties.

11.7.1.2.4. Excise Duty and CST/Sales Tax/VAT (rates and amount) without concessional formfor CST/VAT which will be payable on the finished goods, if this contract isawarded. The statutory variation in Excise duty and Sales tax / VAT and Service Tax, ifapplicable, on finished goods, within the contractual delivery period shall be toEmployer's account against submission of the documentary evidence. However, anyincrease in the rate of these taxes and duties beyond the contractual completionperiod shall be to bidder's account. Any decrease in the rate of taxes & duties shall bepassed on to the Employer.

11.7.2. Option-II: Coating of bare line pipes11.7.2.1 Ex-Warehouse price of coated pipes including, applicable taxes and duties etc. on finished

goods excluding entry tax & octroi, if applicable (such price shall include transportation ofbare pipes from pipe mill(s)/port of entry to coating facility, external coating of bare pipesincluding all costs as well as inland transportation, taxes & duties, levies etc., upto CoaterWorks paid or payable on components and raw materials incorporated or to be incorporatedin the finished goods, despatch of coated pipes to warehouse, establishment (hiring/owning) of Warehouse, transit & storage insurance, storage and preservation of coatedpipes at Warehouse for 2 months beyond contractual completion period or date of lastcoated pipe received at Warehouse whichever is later and loading on line pipe layingcontractors carrier, ED & ST/VAT applicable on finished goods, WCT, Service Tax, etc. asapplicable). Octroi and Entry Tax on the coated pipes, if applicable, shall be reimbursed atactual by GAIL on submission of documentary evidence. However, after this free period oftwo months, Coating Contractor will be entitled for payment of Rs. 2000/- per day forstorage and preservation of coated line pipes at warehouse.

a) Bidder to quote their prices considering following alternate place of issue of thebare line pipes :

Alternative: 1 - Mundra/Anjar/Nanichirai/ Varsana/Samagogha

2 - Pithampur (Indore), M.P.

3 - Kosi Kalan, Distt. Mathura, U.P.

4 - Dahej, Distt. Bharauch, Gujarat

5 - Rourkela

6 - Bhiwandi, Distt. Thane, Maharashtra

7 - Nagothane, Distt. Roha, Maharashtra

8 - Kandla Port (Gujarat)

9 Nanakpaya(EOU)

11.7.2.2 The bidder shall indicate the following separately:

11.7.2.2.1 CIF value of import for raw material and components incorporated or to be incorporatedin the goods. The bidder shall provide description of such material, quantity, rate, valueetc.

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etc.

11.7.3.2.2 Customs duty (rate) considered on above CIF value of import for raw materialand components. The statutory variation in Customs duty, on CIF value indicated as perClause 11.7.3.2.1 above, within the contractual delivery period shall be toEmployer's account against submission of the documentary evidence. However,any increase in the rate of Customs duty beyond the contractual completion period

shall be to bidder's account. In case of wrong classification, no variation includingstatutory variation of Customs Duty will be payable extra. Any decrease in the rateof Customs duty shall be passed on to the Employer.

11.7.3.2.3 Unit price of finished goods including packing and forwarding charges butexcluding applicable taxes and duties, transportation charges and arranging /maintenance of warehouse charges.

11.7.3.2.4 Excise Duty and Sales tax/VAT (rates and amount ) without any concessional form,which will be payable on the finished goods, if this contract is awarded. The statutoryvariation in Excise duty and Sales tax / VAT and Service Tax, if applicable, onfinished goods, within the contractual delivery period shall be to Employer's accountagainst submission of the documentary evidence. However, any increase in therate of these taxes and duties beyond the contractual completion period shall be tobidder's account. Any decrease in the rate of taxes & duties shall be passed on to theEmployer.

11.7.3.2.5 Inland transportation charges from dispatch point to designated warehouseincluding loading, unloading of pipes at respective warehouses. The prices should beinclusive of all taxes, duties, levies etc. and storage and preservation of coated pipesat Warehouse upto 2 months beyond the contractual completion period or date of lastcoated pipe received at warehouse whichever is later (including loading on line pipelaying contractor's carrier).

11.7.3.2.6 Taxes and duties in % and amount included in Clause 11.7.3.2.5.

11.8 Foreign Bidders shall indicate the following as per Price Schedule:

11.8.1 Option-I: Supply of Bare Line Pipes

11.8.1.1 Bidders shall submit their unit & total prices on FOB - International Port of Shipment,CFR - Kandla Port basis as detailed out in the Price Schedule.

11.8.1.2 The request for different price basis is merely to facilitate the comparison of bids andwill not in any way limit the Employer's right to contract on different terms.

11.8.1.3 Employer reserves the right to place the order on any of the above specified pricebasis. In case of award, initially the purchase order (PO) shall be placed on FOBbasis and GAIL reserves the right to convert the same to CFR basis within 45 daysfrom placement of order. Therefore, the CFR prices should be valid for additional 45days from the date of PO.

11.8.1.4 Prices quoted shall be inclusive of all applicable taxes and duties, packing &forwarding, stowing, etc. applicable upto FOB - International Port of shipment.

11.8.2 Option-II: Coating of bare line pipes

Same as applicable for Indian bidders opting for option - II, clause no. 11.7.2

11.8.3 Option-III: Supply of coated line

pipes

(A) If the coated pipes are imported:

11.8.3.1 Foreign bidder to quote Ex-Warehouse in India Unit and total price of coated pipesincluding packing and forwarding, applicable taxes and duties etc. on finished goodsexcluding octroi & entry tax, if applicable (such price to include

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11.8.3.3 Foreign bidder to quote Ex-Warehouse unit & total price of coated pipes including packingand forwarding, applicable taxes and duties, etc. on finished goods excluding entry tax &octroi, if applicable (such price to include fabrication /manufacturing of line pipes includingall costs as well as duties and taxes applicable outside India, paid or payable oncomponents and raw materials incorporated or to be incorporated in the goods, despatch ofbare pipes to port of entry in India, (excluding payment of Indian Customs duty), portclearance and other charges at port of entry, inland transportation including taxes, duties,

levies upto Coaters Works etc., in India, despatch of bare pipes to coating facility, externalcoating of pipes, despatch of coated pipes to warehouse, establishment (hiring /owning) ofwarehouse, all insurance, storage and preservation of coated pipes at warehouse forcontractual completion period or date of last coated pipe received at warehouse whicheveris later and loading on line pipes laying contractors carrier, ED/ ST/VAT applicable onfinished goods, WCT, Service Tax, etc.). Octroi & entry tax on the coated pipes, ifapplicable, shall be reimbursed as actual by GAIL on submission of documentary evidence.However, after this free period of two months beyond contractual period, Coated Pipesupplier will be entitled for payment of Rs. 2000/- per day for storage and preservation ofcoated line pipes at warehouse.

Customs Duty will be paid directly by GAIL. The Pipes shall be consigned to GAIL(India) Limited. The Foreign Bidder shall furnish Indemnity Bond equivalent to the CIFvalue of Customs Cleared goods Plus the value of Import duties to Purchaser before

undertaking above activities. The Indemnity Bond shall be valid till handing over of lastpipe to laying contractor.

Any delay in submitting Indemnity Bond and thus resulting in any cost/charges toPurchaser including demurrage/wharfage shall be to Bidder's account only.Responsibility of safe custody of Pipes while undertaking customs clearance;transportation etc. shall be with Foreign bidder. Foreign Bidder shall indemnify GAILagainst any losses of or damage to misuses or misappropriation whatsoever ofPurchaser's Pipes while in possession of them / their Indian counterpart. ForeignBidder shall take adequate precautions for safe custody of Purchaser's Pipes includingits insurance while in their possession.

In order to import the goods on project rate of Indian customs duty, bare line pipes shallbe consigned in the name of GAIL. The customs duty applicable on the import of

bare line pipes shall be paid by GAIL and the cost of the same shall not be included inthe quoted prices.

All type of insurance including but not limited to marine, transit, storage etc., shall be inbidders scope.

11.8.3.4 The bidder shall indicate the following separately:

11.8.3.4.1 CIF value of bare line pipes, coating materials etc., at port of discharge (KandlaPorts) in India. : The bidder shall provide description of such material, quantity, rate,value etc.

11.8.3.4.2 Deleted.

11.8.3.4.3 Unit price of finished goods including packing and forwarding charges butexcluding applicable taxes and duties. Bidder to indicate separately prices of coating

works under Column 9 of Price Schedule.11.8.3.4.4 Excise duty and Sales tax/VAT (rates and amount) which will be payable on the

finished goods, if this contract is awarded. The statutory variation in Excise dutyand Sales tax / VAT and Service Tax, if applicable, on finished goods, within thecontractual delivery period shall be to Employer's account against submission of thedocumentary evidence. However, any increase in the rate of these taxes and dutiesbeyond the contractual completion period shall be to bidder's account. Any decrease inthe rate of taxes & duties shall be passed on to the Employer.

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11.8.3.4.5 Establishment (hiring/owing) of warehouse, inland transportation charges fromdispatch point to designated warehouse including loading, unloading of pipes atrespective warehouses. The prices should be inclusive of all taxes, duties, leviesetc. and storage and preservation of coated pipes at Warehouse upto 2 monthsbeyond the contractual completion period or date of last coated pipe received atwarehouse whichever is later. (including loading on line pipe laying contractor's carrier).

11.8.3.4.6 Taxes and duties as applicable in % and amount included in clause 11.8.3.4.5.

11.9 Wherever service tax is applicable, bidder to indicate the option and rate considered byhim. Option once declared can not be changed. Statutory variations on Service Taxshall be borne by GAIL subject to submission of documentary evidence.

12 BID CURRENCY:

12.1 Indian bidders may submit bid in Indian Rupees or in US $ / Euro and receive paymentin such currency.

12.2 Foreign bidders may submit bid in the home currency of bidder's country or inUS$/EURO.

12.3 A bidder expecting to incur a portion of his expenditure in the performance ofContract in more than one currency (limited to maximum two currencies) (without

prejudice to the provisions of Clause 12.2) and wishing to be paid accordingly shallindicate the same in the bid. In such a case, the bid shall be expressed in differentcurrencies with the respective amounts in each currency together making up the totalprice.

12.4 Currency once quoted will not be allowed to be changed. Employer shall not becompensating for any exchange rate fluctuation.

13 PERIOD OF VALIDITY OF BIDS

13.1 The bid shall remain valid for acceptance for four (4) months from the bid due date. Abid valid for a shorter period shall be rejected being non-responsive.

13.2 In exceptional circumstances, prior to expiry of the original bid validity period, theEmployer/ Consultant may request that the bidder extend the period of validity

for a specified additional period. The requests and the responses thereto shall bemade in writing (by e- mail/fax/post). A bidder may refuse the request withoutforfeiture of its bid security. A bidder agreeing to the request will not be required orpermitted to modify his bid, but will be required to extend the validity of its bidsecuri ty for the per iod of the extension and in accordance with ITB clause 14 in allrespects.

14 BID SECURITY

14.1 The bidder shall furnish, as part of its Bid, a Bid Security in the amount specified in theIFB.

14.2 The bid security is required to protect the Employer against the risk of bidder'sconduct which would warrant the bid security's forfeiture, pursuant to clause 14.7 ofITB.

14.3 The bid security in US Dollars for bidders quoting in foreign currency and Indian Rupeesfor bidders quoting in Indian Rupees shall be in the form of Demand Draft/ Banker'sCheque in favour of GAIL (India) Ltd., payable at New Delhi or in the form of anirrevocable Bank Guarantee in favour of GAIL (India) Ltd. as per format enclosed at F-4 (issued by any Indian Scheduled bank or a branch of an International Bank situatedin India and registered with Reserve Bank of India as Scheduled Foreign Bank in caseof Indian bidders and from any reputed international bank or Indian Scheduled Bankin case of Foreign bidders).

GAIL shall not be liable to pay any bank charges, commission or interest on the

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amount of bid security.

However, in case of Bank Guarantee from banks other than the NationalizedIndian 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 commercialbank either in the bank guarantee itself or separately on its letterhead.

The bid security shall be valid for two (02) months beyond the validity of the bidas specified in Clause 13 of ITB.

14.4 Any bid not secured in accordance with clause 14.1 and 14.3 shall be rejected byGAIL as non-responsive.

14.5 Unsuccessful bidders bid security will be discharged or returned, as promptly aspossible but not later than 30 days after the expiration of period of bid validityprescribed by GAIL pursuant to clause 13.

14.6 The successful bidder's bid security will be discharged upon the bidder's acceptingthe order, pursuant to clause 37 of ITB and furnishing the Contract PerformanceGuarantee