P-2

Procurement of Civil Works and Goods under

ICB Procedures in Bank Financed Projects

PROCUREMENT OF CIVIL WORKS AND GOODS

2 ICB Procedures

UNDER INTERNATIONAL COMPETITIVE BIDDING (ICB) PROCEDURES IN BANK-FINANCED PROJECTS

General 1. Bank Guidelines for Procurement under IBRD Loans and IDA Credits. These explain the procedures to be

followed for procuring Goods and Works required for the Project and are applicable to the extent provided in the Project Agreement. The salient features are indicated below for ready reference. These are not exhaustive and does not purport to replace the provisions of Bank Guidelines.

2. The responsibility for the execution of the Project and therefore for the award and administration of Contracts under

the Project rests with the Borrower. 3. Four considerations generally guide the Bank's requirements : a) the need for economy and efficiency in the execution of the Project; b) the Bank's interest as a cooperative institution in giving all eligible bidders from developed and developing

countries the same information and equal opportunity to compete; c) the Bank's interest, as a development institution, in encouraging the development of domestic contracting and

manufacturing industries; and d) the importance of transparency in the procurement process. 4. The Bank has found that in most cases the above needs and interest can best be realized through international

competitive bidding (open to all eligible suppliers and contractors) properly administered and with suitable allowance for preferences for domestic manufacturers of goods and where appropriate, for domestic contractors for works under prescribed conditions.

5. International competitive bidding procedures prescribed in the Bank guidelines have the purpose of affording all

eligible prospective bidders adequate notification of borrower's requirements and of providing all such bidders an equal opportunity to bid on the necessary goods and works.

Eligibility and Qualification Requirements : 6. The bid invitation should be open to all bidders from all source countries as defined under the "Guidelines for

Procurement". As exceptions to the foregoing: (a) Firms of a country or goods manufactured in a country may be excluded if, (i) as a matter of law or official

regulation, the Borrower’s country prohibits commercial relations with that country, provided that the Bank is satisfied that such exclusion does not preclude effective competition for the supply of goods or works required, or (ii) by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the Borrower’s country prohibits any import of goods from that country or any payments to persons or entities in that country.

(b) A firm which has been engaged by the Borrower to provide consulting services for the preparation or

implementation of a project, and any of it’s affiliates, shall be disqualified from subsequently providing goods or works or services resulting from or directly related to the firm’s consulting of services for such preparation or implementation. This provision does not apply to the various firms (consultants, contractors or suppliers) which together are performing the contractor’s obligations under a turnkey or design and build contract.

(c) Government-owned enterprises in the Borrower’s country may participate only if they can establish that they

(i) are legally and financially autonomous, and (ii) operate under commercial law. No dependent agency of the Borrower or Sub-Borrower under a Bank-financed project shall be permitted to bid or submit a proposal

3 ICB Procedures

for the procurement of goods or works under the project (other than Force Account units as permitted under the guidelines); and

(d) A firm under a declaration of ineligibility for corrupt, fraudulent, collusive and coercive practices (in

accordance with Guidelines). All goods, contractor’s equipment, and other related services to be supplied under these contracts shall have their

origin in eligible source countries, defined under the "Guidelines for Procurement", and all expenditures made under the contracts will be limited to such goods, equipment, and other related services. For the purpose of this clause, "origin" means the place where the goods, contractor’s equipment and other related services are mined, grown or produced when, through manufacturing, processing or substantial and major assembly of components, a commercially recognized product results that is substantially different in basic characteristics or in purpose or utility from its components. The origin of goods and services is distinct from the nationality of the bidder.

Procurement Schedule and Plan 7. The size and scope of the individual contracts will depend on the magnitude, nature and location of project in the

case of civil works and quantity/number and nature in case of goods, keeping in view that works and goods are to be procured economically and efficiently consistent with quality. A procurement plan in the prescribed formats (Enclosure I & II) indicating details for each contract/package should be compiled and forwarded to the Bank for review and clearance before initiating action.

Notification and advertising 8. Advertising and invitation should conform to the Guidelines (paras 2.7 and 2.8), and should provide a brief

description of the goods and works to be procured, contract conditions, financing of the project, eligibility requirements, time and place where bidding or prequalification documents can be obtained and bids or applications submitted.

9. (i) For projects, which include procurement on the basis of ICB, General Procurement Notice (GPN) in the

format attached (Enclosure III) should be prepared and forwarded to the Bank for publication in the UNDB. The related prequalification or bidding documents, shall not be released earlier than the date of publication of the General Procurement Notice.

(ii) Prequalification Notice/Bid invitation notices should be prepared and forwarded to the Bank not later than 15

days prior to the date of sale of prequalification/bidding documents. The Bank will arrange for the publication of the notice in the United Nations Development Business online and dgmarket. (Model prequalification and Invitation for Bids [IFB] enclosed (Enclosures IV and V).

10. The Invitation for Bid should also be published in the National news papers having wide circulation in all regions of

the country. Prequalification 11. Prequalification is usually necessary for large or complex works or in any other circumstances in which the high

costs of preparing detailed bids could discourage competition such as for custom designed equipment, industrial plant and specialized services etc and to contracts to be let under turnkey, design and build or management contracting, to ensure that invitations to bid are extended only to those who have adequate capabilities and resources.

12. The objective of prequalification is to ensure that bidders for a contract will be only those contractors or

suppliers who have the experience and technical/ financial resources necessary to fulfill the contract requirements. Prequalification is a screening process that is designed to provide the following benefits:

- unqualified bidders save the cost of bid preparation which results in lower overhead costs to them;

4 ICB Procedures

- leading contractors and suppliers particularly those of international status are more likely to bid knowing that competition is confined to only those qualified;

- the evaluation of only bids from qualified bidders may result in time and cost savings; and

- prequalification may also (i) give preliminary indication of a contractor's eligibility for civil works domestic preference where this is allowed, and (ii) encourage the creation of appropriate Joint ventures.

13. Prequalification should be based entirely upon the capability and resources of prospective bidders to perform the

particular contract satisfactorily, taking into account, their : (i) experience and past performance on similar contracts; (ii) capabilities with respect to personnel, equipment and construction or manufacturing facilities; and (iii) financial position. (Sample attached- Enclosure XIII) The evaluation should be relevant to the period over which the contract will be executed; thus it is necessary to take

into account known commitments over that period. Restrictions requiring previous experience in the borrower's country is not acceptable.

14. The invitation to prequalify for bidding should be advertised and notified as described earlier. The scope of the

contract and a clear statement of the requirements for qualification, should be sent to those who responded to the invitation. Normally a period of 60 days (minimum 6 weeks) should be allowed for applicants to apply and furnish prequalification information.

15. Prequalification documents should enlarge the information provided in the notification advertisement and contain a

description of the proposed procurement, location of the work, eligibility requirements, procurement scheduling, abbreviated specifications and conditions of contract, main quantities, delivery and implementation schedules, requirements for bid and performance securities, project financing, payment terms, price adjustment provisions, language and law of the contract and such other information in sufficient detail for the applicants to asses his interest and respond appropriately. The document should specify very clearly the eligibility, joint venture, domestic preference and minimum qualification criteria. It should also specify the criteria for evaluation of the applicants.

Prequalification of Joint Ventures : 16. Prequalification document should explain very clearly the conditions applying to such an applicant, to any change in

the membership after prequalification, to the formation of a potential association after prequalification and to the subsequent bidding by such an association.

17. Applications for prequalification submitted by groups of two or more firms as partners of a Joint venture must meet

the following requirements : a) each partner of the joint venture must submit the complete documentation requirement of a firm

applying for individual prequalification; b) the application must confirm that if, after prequalification, the applicant should submit a bid, then (i) that bid

as well as (in the case of an award) the resulting contract would be signed so as to be legally binding on all partners jointly and severally, and (ii) a joint venture agreement providing the joint and several liability of all partners in respect to the contract would be submitted with the bid;

c) the application must include a description of the proposed participation and responsibility of each partner of the joint venture;

d) the application must designate one of the partners as partner in charge and this authorization will be evidenced by submitting a power of attorney signed by legally authorized signatories of all the partners;

e) a copy of the agreement entered into by the joint venture partners will be submitted with the bid.

5 ICB Procedures

Applications for prequalification submitted by groups of two or more firms which do not meet these joint venture requirements should be rejected.

18. While it is acceptable for any firm to apply for prequalification both individually and as partner of a joint venture, it will

not be acceptable for any firm to submit, or to participate in, more than one bid, and any bids submitted in violation will have to be rejected.

19. Any formation of a joint venture after prequalification and any change in a prequalified joint venture will be subject to

approval of the borrower prior to the deadline set for the receipt of the bids. Such an approval should not be granted if, among other things, the proposed formation or change would, in the borrowers opinion, result in :

(i) a substantial reduction of competition, (ii) the inclusion of a firm which had not previously been prequalified (either individually or as a part of another joint

venture), or (iii) the lowering of the joint venture's qualifications below the minimal standards stated as acceptable in the

prequalification documents. 20. The prequalification of a joint venture does not necessarily prequalify any of it’s partners individually or as a partner in

any other joint venture or associations. In the case of dissolution of joint venture, each one of the constituent firms may prequalify if they meet all the prequalification requirements subject to the written approval of Employer.

21. The qualifying characteristics of the individual members in the proportion of their participation will be added for purposes

of arriving at the total capacity of the Joint Venture provided that: - no member of the Joint Venture shall have less than 25% of any of the qualifying requirements; and - the lead member meets no less than 50% of the qualifying requirements. 22. The borrower has the responsibility of preparing the prequalification documents, which should be got cleared with the

Bank. The key considerations to be taken into account are that the document should (a) encourage eligible, potentially qualified firms to apply, by making reasonable demands for information and form filling; (b) not discriminate against any potential applicant; and (c) provide a clear, objective means of evaluating the applicants.

23. Evaluation of the prequalification applications should be got cleared with the Bank before notification. The borrower should therefore submit the following for the Bank's review of the proposed prequalification procedure : (a) draft text of the advertisement and invitation to prequalify; (b) list of local and foreign newspapers, technical magazines and trade publications in which the advertisements will be published; (c) list of the firms to whom a copy of the invitation will be sent in response to a direct expression of interest; (d) draft prequalification document, including criteria for evaluation; and (e) schedule for prequalification, bidding and contract award. 24. As soon as prequalification is completed, the bidding documents should be issued to the qualified bidders. All such

bidders who have been prequalified should be allowed to submit price bids. Revision of Information 25. [a] The prequalification process should be undertaken only at such time as the preparation of designs and bid

documents is well in hand, allowing a call for bids to be issued preferably with the notice of results to successful prequalification applicants. Although the interval between the time prequalification information is submitted and bids are evaluated may thereby be held to a minimum, it is to be expected that changes in the capabilities of bidders during the interval may occur, particularly with respect to financial status and future work commitments. It is thus necessary that bid documents in the Instruction to Bidders [ITB] require all bidders to update essential information on their qualifications previously submitted, and in particular the financial information and work commitments acquired since prequalification. Award can be denied to a prequalified bidder that is judged to have no longer, the capability or resources to successfully perform the contract.

6 ICB Procedures

[b] Situations may arise where the bidding process is delayed and a long interval (a year or more) occurs between the time prequalification information is submitted and a call for bids is issued. In such circumstances, it is prudent to re-advertise for prequalification application in order to allow all firms to apply, including those which previously were not interested, and firms previously found unqualified and whose capabilities and experience may have strengthened sufficiently to enable them to qualify. Conversely, previously prequalified firms may no longer be qualified, and if the delay is a year or longer, a full updated prequalification application must be requested.

Bidding Documents 26. Standard Bidding Documents (SBDs) issued by the Bank should be used with minimum changes acceptable to the Bank

for the Project. All such changes shall be introduced only through bid or contract data sheets or through Special Conditions of Contract and not through changes in the standard wording of the SBDs.

27. Bidding document should include Invitation to Bid; Instructions to the Bidders; Form of bid; Basis of bid evaluation and

contract award; Form of Contract; Conditions of Contract, both General and Special; Specifications and Drawings; List of Goods or Bill of Quantities; Delivery time or Schedule of Completion; Price Schedule; Bid Security Form; Contract Form; Performance Security Form and Advance Payment Security Form etc. Bidding documents should specify the relevant factors in addition to price to be considered in the bid evaluation and the manner in which they will be applied for the purpose of determining the lowest evaluated bid.

28. Bidding documents in the case of goods should specify what inspection and tests the purchaser requires, where and who

will conduct the tests. The purchaser shall notify the suppliers in writing, the identity of inspection agency retained along with the supply order.

Inspection and Testing A draft model clause for inspection and testing of sample items (G.C.C 25.1 of SBD-Goods) is attached in Annexure

XVI for guidance. Samples Bidding documents should generally avoid submission of samples along with bid by bidders as this requirement

discourages competition and increases the bid prices. Alternatively bidders should be requested to confirm that their product meets with the required specifications and in support attach appropriate test certificates from recognized testing laboratories.

29. For all pre-review cases, prior clearance of the Bank is necessary for each bidding document although based on the

approved models. 30. Notwithstanding registration requirements of the State, bids should be invited from all eligible bidders as defined under

paras 1.6 to 1.8 of BGL. Explicit post qualification criteria should be specified in the bidding document, if bidders are not prequalified. Minimum qualifying criteria for physical out turn and financial turnover should be clearly set out in case of civil works (sample attached - Enclosure XIII).

31. Where Package and Slices procedure is followed, the clauses of submission and evaluation of bids should be drafted

appropriately and got cleared with the Bank. Liquidated Damages 32. Liquidated damages not exceeding 0.1 % per day or 0.5% per week (for goods) and 0.05% per day (for civil works) of the

value of the delayed goods, services, or works, subject to a maximum of 10% of the contract value are normally to be specified for delays in completion of works or supply of goods.

7 ICB Procedures

Price Adjustment 33. Bidding documents shall state either that (i) bid prices will be fixed or (ii) that price adjustments will be made to reflect

any changes (upwards or downwards) in major cost of components of the contract such as labour, equipment, material and fuel.

A sample price adjustment formula both for Goods and Works are attached as Enclosures XIV 1 and 2 respectively. As

stated in the notes therein, if the currency (ies), in which the contract price is expressed, is(are) different from the currency of origin of indices (both labour and materials) a correction factor will be applied to the adjustment amount to avoid incorrect adjustments of the contract price.

An illustration of how such correction is to be applied is attached for Goods (Enclosure XIV/3) for guidance. 34. Price adjustment clause should invariably be provided when the stipulated period of completion of works or supply of

goods is more than 18 months. The total percentage of Labour, Materials and POL components should equal 100, if "R" in the formula represents the value of work done. In such cases a bid submitted with a fixed price quotation will not be rejected; but the price adjustment would be treated as zero.

35. Where the stipulated period of completion of works or of supply of goods is less than 18 months, normally prices quoted

by the bidder shall be fixed during the bidder's performance of the contract and not subject to variation on any account. In such cases, a bid submitted with an adjustable price quotation will be treated as non- responsive and rejected.

Supply of Materials by Department 36. Contractors of civil works should be made responsible, as far as possible, for all materials (including cement and steel)

and equipment without having to rely on departmental supplies. With the exception of explosives if a Borrower insists on supply of certain construction materials, Bank will consider this reserved procurement and the estimated cost of the materials thus supplied will be excluded from the total project costs to determine the amount Bank will finance.

Schedule of Quantities 37. Land acquisition and engineering investigations for the work should be completed and based on these, bill of quantities

and specifications should be properly checked. Schedule of quantities for each slice and package should be incorporated separately in the bidding document.

Mobilization Advance

38. Provision of Mobilization Advance for the Labour and Equipment should be incorporated in all civil works contracts. Bid Security 39. a) Bid Security shall be denominated in the currency of the bid or another freely convertible currency (US Dollars) or

Indian Rupees. b) Bid Security should be normally about 2% of the cost of civil works put to tender, but could range between 1% for

large contracts and 3% for small contracts. In case of goods, it should normally be in the range of 2 to 5% of the estimated cost of item put to tender. The amount of bid security should be computed based on estimated cost and specified to the nearest thousand or hundreds. (For small value purchases and in some specific cases where bid security is considered not essential (for e.g. vehicles) it could be dispensed with).

c) Bid Security has to be in one of the acceptable forms (including Bank guarantees) and should be valid for 45 days beyond the bid validity period.

d) In lieu of Bid Security, a Bid Securing declaration can be prescribed in which bidders sign a declaration that if they withdraw/modify the bid during the bid validity or refuse to sign the agreement, the bidders can be suspended for a specified period.

e) Bid security of a joint venture must be in the name of all the partners in the joint venture submitting the bid. 40. No exemption of Bid Security or Security Deposit or Bid Securing Declaration should be permitted to any bidder or class

of bidders.

8 ICB Procedures

41. Any bid not secured in accordance with the requirements of the bidding documents will be rejected as non

responsive. Bid Currencies 42. In the case of civil works contracts, the unit rates and prices shall be quoted by the bidder in Indian Rupees. A

bidder expecting to incur expenditures in other currencies for inputs to the works supplied from outside India shall indicate the percentage of the bid price (excluding provisional sums) needed by him for the payment of such foreign currency requirements, in any currency. Alternatively, it may be stipulated that bidder should quote separately :

(a) for those inputs which the bidder expects to supply locally in Indian Rupees; and (b) for those inputs which the bidder expects to supply from outside India and incur expenditures in other

currencies (referred to as foreign currency requirements) in upto three currencies of any country. Bidders shall have to indicate their expected foreign currency requirements in the prescribed schedule with sufficient

details. They may be required to clarify their local and foreign currency requirements and to substantiate that the amounts included are reasonable. The requirements of foreign currency by different bidders should not be a factor to be taken into account in bid evaluation.

In case of goods, the bidder shall quote the prices in any currency, in accordance with eligible countries as defined

in the guidelines. Further, a bidder who wishes to be paid in a combination of amounts in different currencies may quote it’s price

accordingly, but use no more than three foreign currencies. Sale of Bidding Documents, Receipt and Opening of Bids 43. Bidding documents should be made available for sale till a day prior to the last date of receipt of bids, to all those

who intend to participate in the bidding, for a minimum period of 6 weeks [either by mail or by hand]. It should range from 6 to 12 weeks depending on the magnitude and complexity of the work.

44. Bidders should be permitted to deposit their bids on any day during the bidding period. Receipt of bids should not

be restricted to few days or last day only. Bidders could submit their bids either by post or hand over in person on any day during the bidding period. Bids should be received only at one place and should be kept in safe custody till the stipulated time of bid opening. (If electronic submission is permitted detailed procedures for the same should be specified in documents).

45. Last date of receipt of bids and opening of bids should be the next day, following the close of sale of bidding

documents. If that day happens to be a holiday, the last date of receipt and opening of bids shall be the next working day. The time of bid opening should be the same as for the deadline for receipt of bids or promptly thereafter (15 to 30 minutes later to allow sufficient time to take the bids to the venue announced for public bid opening). All bids received should be opened in the presence of bidder's representatives who choose to attend and shall sign a register evidencing their attendance.

46. Envelopes marked “WITHDRAWAL” shall be opened first, and the name of the bidder shall be read out. Bids for

which an acceptable notice of withdrawal (together with valid authorization) has been submitted shall not be opened. Subsequently, all envelopes marked “MODIFICATION” shall be opened and the submissions therein (together with valid authorization) read out in appropriate detail. The bidder's names, bid modifications or withdrawals, bid prices including any alternative Bid Price or deviation, discounts, bid modifications and withdrawals and the presence or absence of the requisite bid security and such other details as considered appropriate by the Purchaser shall be announced during opening of bids in the meeting. All cuttings and/ or overwritings observed in the bid Form and Price Schedule should be authenticated by the officers of the Bid opening committee by encircling and initialing the cuttings/overwritings. The minutes of the bid opening should be prepared in the specified format (Enclosure XV). No bid shall be rejected at the bid opening except for late bids which shall be returned unopened to the Bidder.

9 ICB Procedures

47. Bids and modifications that are not opened and read out at the bid opening shall not be considered further for

evaluation, irrespective of the circumstances. Withdrawn bids will be returned unopened to the bidders. Prebid Meeting : 48. Prebid meeting should be provided where necessary and should be convened early in the bidding process, but

should allow sufficient time for bidders to study the bidding documents and prepare questions. The meeting should be scheduled at about one third or midpoint of bidding time. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at this stage. Minimum post qualification criteria to be met (if a prequalification procedure was not used prior to bidding), as well as the important provisions of the bidding document, schedule of requirements and the special conditions of contract and the special features of the specifications should be explained to the prospective bidders. Minutes of the meeting, indicating the responses given in the meeting (including an explanation of the query but without identifying the source of the inquiry) should be furnished expeditiously to all those attending the meeting (and subsequently to all purchasers of the bidding documents), after getting the same cleared with the Bank. Any modification of the bidding documents which may become necessary as a result of the prebid meeting shall be made exclusively through issuance of corrigendum (after getting the same cleared with the Bank) and not through the minutes of the prebid meeting.

Evaluation of Bids 49. Before proceeding for evaluation, it should be ascertained whether the bids : i) meets the eligibility requirements specified in paras 1.6 to 1.8 of BGL,

ii) have been properly signed, (Judgment should be used in applying the above tests. For instance, if the bidding document stipulated that each page is to be signed or initialed, and a bidder omitted to sign one or more pages containing more supporting information, this should not be a ground for disqualification. Similarly, minor discrepancies e.g., if a bidder has failed to furnish the required number of copies or has failed to use the supplied form for filling in the prices, but has submitted a similar form on his own letterhead could be rectified through the clarification process without giving any benefit to the bidder and without prejudice to other bidders’ interests).

iii) are accompanied by the required authorization/undertakings (for signatories, agents and subsidiaries as specified in the documents),

iv) are accompanied by the required securities, (Where the bidder has quoted for more than one pack, if the bid security furnished is inadequate for all the packs, the Purchaser shall take the price bid into account only to the extent the bid is secured. For this purpose, the extent to which the bid is secured shall be determined by evaluating the requirement of bid security to be furnished for the packs included in his bid (offer) in the serial order of the Schedule of Requirements of the Bidding Document – Bid security of a joint venture must be in the name of all the partners in the joint venture submitting the bid).

v) are substantially responsive to the requirements of the bidding documents, vi) provides any clarification and or substantiation that the Purchaser/Employer is required to determine

responsiveness; and vii) are otherwise generally in order If a bid is not substantially responsive, that is, it contains material deviations from or reservations to the terms,

conditions and specifications in the bidding documents, it should not be considered further. The bidder must not be permitted to correct or withdraw material deviations or reservations once bids have been opened.

50. The purchaser may waive any minor informality or nonconformity or irregularity in a bid which does not constitute

a material deviation, provided such waiver does not prejudice or affect the relative ranking of any bidder. In those cases for the purpose of evaluation, adjustments should be made for the costs to the purchaser of any quantifiable non material deviations or reservations.

10 ICB Procedures

The evaluation will exclude and not take into account any allowance for price adjustment during the period of execution of the contract.

51. a) A substantially responsive bid is one which conforms to all the terms and conditions of the bidding document

without material deviations. The determination of a bid's responsiveness is to be based on the contents of the bid itself without recourse to extrinsic evidence.

b) A substantially responsive bid is defined as under in SBD (Works) and SBD (Goods).

SBD (Works): "28.2 A substantially responsive bid is one which conforms to all the terms, conditions and

specifications of the bidding documents, without material deviation or reservation. A material deviation or reservation is one (i) which affects in any substantial way the scope, quality or performance of the works; (ii) which limits in any substantial way, inconsistent with the bidding documents, the Employer's rights or the bidder's obligations under the Contract; or

(iii) whose rectification would affect unfairly the competitive position of other bidders

presenting substantially responsive bids". SBD (Goods) – Bid Data Sheet 33.1: “Deviations from or objections or reservations to critical provisions such as those concerning Bid Security or

Declaration (ITB Clause 21), Applicable Law (GCC Clause 9), Taxes and Duties (GCC Clause 16), Deemed Export Benefits [Note under ITB Clause 14.6], Performance Security [GCC Clause 17], Warranty [GCC Clause 27], Force Majeure [GCC Clause 31], Limitation of Liability [GCC Clause 29] are to be treated as critical provisions for the above purpose.

c) If a bid is not substantially responsive, i.e., it contains material deviations from or reservations to the terms,

conditions and specifications indicated in the documents, it should not be considered further. d) No bidder should be requested or permitted to alter his bid after the bid has been opened. In order to evaluate

his bid, if any clarification is required, the same can be called. The request for clarification and the response shall be in writing and no change in the prices or substance of the bid shall be sought, offered or permitted.

52. No preferential treatment should be given to any bidder or class of bidders either for price or for conditions unless

specifically cleared with the Bank and stipulated in the Project Agreement. Any procedure under which bids above or below a pre-determined assessment of bid values are automatically

disqualified, is not acceptable. Conversion to single currency : 53. The bid price is the sum of all payments in various currencies required to be made to the bidder. To facilitate

evaluation and comparison of bids, the department will convert the amounts in various currencies in which the bid price is payable to Indian Rupees at the selling rates for similar transactions published by any Scheduled Bank in India on the date of bid opening as per procedure stipulated in the bidding document.

11 ICB Procedures

54. Evaluation of Bids for Civil Works: a) All substantially responsive bids should be evaluated in detail as per procedure stipulated in bidding

documents. In evaluating the bids, evaluated bid price of each bid is determined by adjusting the bid price as follows:

(i) making any correction for errors;

(ii) excluding Provisional Sums and the provision, if any, for contingencies in the Summary Bill of Quantities, but including Daywork, where priced competitively;

(iii) converting the amount resulting from applying (a) to (b) above to a single currency; (iv) making an appropriate adjustment on sound technical and/or financial grounds for any other

quantifiable acceptable variations, deviations or alternative offers; (v) making an allowance for varying times for completion offered by bidders, if permitted in the Bidding

Data and in the manner prescribed therein; and (vi) applying any discounts offered by the bidder for the award of more than one contract, if bidding for

this contract is being done concurrently with other contracts. The evaluation will exclude and not take into account any allowance for price adjustment during the

period of implementation of the contract. Preference for Domestic bidders: b) Domestic bidders shall provide all evidence necessary to prove the following criteria to be eligible for a 7.5%

margin of preference in the comparison of their bids with those of non eligible bidders - A “domestic bidder” is one that meets the following criteria: (a) for an individual firm: (i) is registered in the country of the Borrower; (ii) has more than 50% ownership by nationals of the country of the Borrower; (iii) does not subcontract more than 10% of the contract price, excluding provisional sums, to

foreign contractors. (b) for a joint venture (JV) of domestic firms: (i) individual member firms shall satisfy (a)(i) and (a)(ii) above; (ii) the JV shall be registered in the country of the Borrower; (iii) the JV shall not subcontract more than 10% of the contract excluding provisional sums; to

foreign firms.

12 ICB Procedures

d) The following procedure will be used to give effect to the margin of preference. After the bids have been evaluated

in accordance with the provision in the bidding documents, the responsive bids will be classified into the following groups : - Group A : bids offered by domestic bidders meeting the criteria set forth in para (b) above and by joint

ventures meeting the criteria set forth in para (c) above. - Group B : bids offered by other bidders. For the purpose of further evaluation and comparison of bids only an amount equal to 7.5 % of the evaluated bid

price (adjusted) will be added to such evaluated bid price of bids classified in Group B. Suggested format for preparation of the bid evaluation report for civil works is enclosed (Enclosure VI). 55. Evaluation of Bids for Goods: a) The evaluation of a bid will exclude and not take into account: - in case of goods manufactured in India, Sales and other similar taxes which will be payable on the goods if

contract is awarded to the bidder; - in case of goods of foreign origin offered from abroad )already imported or to be imported), custom duties

and other import taxes levied on the imported goods, sales and other similar taxes which will be payable on the goods if the contract is awarded to the bidder; and

- any allowance for price adjustment during the period of execution of the contract if provided in the bid. b) The comparison shall be EXW price of the goods offered from within India, such price to include all costs as

well as duties and taxes paid or payable on components and raw material incorporated or to be incorporated in the goods, and the CIP (place of destination) or CIF (port of destination) price of the goods offered from outside India.

c) Evaluation of the bids should take into account, in addition to the bid price and the price of incidental

services, the following factors in a manner and to the extent indicated in the documents: - cost of inland transportation, insurance and other costs within India incidental to delivery of the goods

to their final destination; - delivery schedule offered in the bid; - deviations in payment schedule from that specified; - cost of components, mandatory spare parts and service; - the availability in India of spare parts and after sales service for the equipment offered; - projected operating and maintenance costs during life of the equipment;

13 ICB Procedures

- performance and productivity of the equipment offered; and - other specific criteria indicated in Bidding Data. Bids should be adjusted appropriately as per bidding documents for any deviations with reference to the

requirements. d) Bonus or additional credits for bid evaluation should not be given for offered features that exceed the

required standards or specifications viz. additional horse power or capacity unless there is a specific provision for this in the bidding document.

e) Bids often omit a particular component or options or accessories or a minor attachment (viz. tool kit or spare

wheel in a vehicle). If the item offered for supply is otherwise functional and if the omissions are minor and these parts can be procured separately, the bid may be adjusted for parts not included in the scope of supply and evaluated. In other cases the bid should be treated as non-responsive. Pricing of components or features which are omitted shall be based on prices for corresponding components item etc. in other responsive bids; if not available from external sources such as printed parts lists, price lists etc.

f) Bidders offering goods from within India, must ascertain their selves availability of deemed export benefits,

if any. They are to be solely responsible for applying for deemed export benefits which they have considered in their offer and the purchaser will not compensate the bidder in case of failure to receive such benefits for any reason whatsoever. Any such duties or taxes additionally payable during the performance of the contract will be to the bidders account and no separate claims on this behalf shall be entertained by the Purchaser. Where the bidder has quoted taking into account the Deemed Export Benefits, he must give all information required for issue of Project Authority Certificate in terms of the Import Export Policy along with his bid. This Certificate will be issued on this basis only and no subsequent change will be permitted. Where such Certificate is issued by the Purchaser, Excise Duty will not be reimbursed separately.

Such a provision should be made in the bidding documents and bids of bidders who do not accept this

provision should be declared non responsive and rejected. g) All substantially responsive bids should be evaluated in detail as per procedure stipulated in bidding

documents. Domestic Preference : h) Bids will be classified in one of three groups as follows: - Group A: Bids offering goods manufactured in India for (i) labour, raw materials and components

from within India account for more than 30 % of the EXW price; and (ii) the production facility in which they will be manufactured or assembled has been engaged in manufacturing or assembling such goods at least since the date of the bid submission;

- Group B: All other bids offering goods manufactured from within India; and - Group C: Bids offering goods manufactured outside India, that have been already imported or to be

imported by the Purchaser directly or through the supplier's local agent. In the comparison of evaluated bids, the purchaser will grant a margin of preference to goods manufactured

in India in accordance with the following procedures provided the bidder shall have established to the satisfaction of the purchaser and the Bank that it complies with the criteria specified in ITB as stated above.

i) The purchaser will first review the bids to confirm the appropriateness of and to modify as necessary, the bid group classification to which bidders assigned their bids in preparing their bid forms and price schedules. j) All evaluated bids in each group will then be compared among themselves to determine the lowest evaluated

bid of each group. The lowest evaluated bid of each group will next be compared with the lowest evaluated

14 ICB Procedures

bids of the other groups. If this comparison results in a bid from Group A or B being the lowest, it will be selected for the award of the contract.

k) If as a result of the preceding comparison, the lowest bid is from Group C, all Group C bids will then be

further compared with the lowest evaluated bid from Group A after adding to the evaluated bid price of the imported goods offered in each Group C bid for the purpose of their comparison only :

- 15% of the CIF/CIP bid price of such goods. - If the Group A bid in the further comparison is the lowest, it will be selected for award. If not, the

lowest evaluated bid from Group C as determined from the comparison under Para (j) above will be selected.

Guidelines for application of domestic preference is given below: Conventional Domestic Preference (Guidelines for Application): The procedure for application of the domestic preference margin in the evaluation and comparison of bids is

outlined in Section III – Para 1 of the SBD for Goods. The following general guidelines are to be borne in mind in the application of domestic price preference in the

evaluation for goods : a) application of a preference margin is permissible only when the loan agreement provides for it by specific

reference in the Procurement Schedule and the bidding documents specifically outline the procedure for its application;

b) the goods under procurement are ' manufactured goods' involving assembly, fabrication, processing, etc.,

where a commercially recognized final product results that is substantially different in basic characteristics from its components and raw materials;

c) the goods offered by foreign and domestic bidders are identical or comparable in respect of quality, size,

capacity, performance; d) that, among the bids, there is a qualified domestic bid (Group A) which, irrespective of the nationality of

the bidder, has offered goods assembled/manufactured in India (i) in which the value of labour, raw material and components from India will account for more than 30 % of the EXW price of the product offered; and (ii) the production facility in which those goods will be manufactured or assembled has been engaged in manufacturing assembling such goods at least since the time of bid submission;

e) the qualified domestic bid (Group A) shall quote the ex-factory price for the goods under procurement,

say, an engine, and not break up the price partly as CIF/CIP covering imported components, and partly on 'ex-factory' basis covering the local costs;

f) the ex-factory price quoted by the domestic manufacturer shall include all duties, taxes, levies, tariff, etc.,

paid or payable on the raw material and components purchased in the domestic market or imported; g) the margin of preference shall be added to the CIF/CIP price of foreign bids and not subtracted from the

domestic bid;

15 ICB Procedures

h) the margin of preference shall be equal to 15 % of the CIF/CIP value of the goods offered in each such bid, whichever is less;

(Data necessary to verify compliance on the above are to be sought from the bidders, by the purchaser along

with the bid.) Suggested format for preparation of the bid evaluation report for goods is enclosed (Enclosure VII). 56. A bidder should not be required as a condition of award to undertake responsibilities for work not stipulated in the

bidding document or otherwise to modify his bid as originally submitted. Single Bids 57. Where only one bid is received, efforts should be made to ascertain the reasons. If it is determined that publicity

was not adequate, bid specifications or any of terms were restrictive or unclear, the bid should be cancelled and invited afresh after amending the specifications/terms.

If however, it is determined that bid specifications are not restrictive and the prices quoted are reasonable and bid is

technically and commercially responsive, the single bid should be considered for award. Award of Contract 58. Contract should be awarded to a bidder, whose bid has been determined to be substantially responsive and who has

offered the lowest evaluated bid price provided further that the bidder is determined to be qualified to perform the contract satisfactorily and meets the qualification criteria specified in the bidding document. If the lowest evaluated bidder (in the same name and style) does not meet the qualification criteria, his bid should be rejected and a similar determination should be made for the next lowest evaluated bidder; the process continued, if necessary. (Bids should not be rejected solely on account of non-submission of historical information. Bidders should be given one opportunity to furnish the necessary information by giving adequate time. Where necessary purchaser/employer may also consider verifying the information independently before considering rejection of lower offers for non-submission of historical information. To qualify for a package of contract made up of this and other contracts for which bids are invited, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for the individual contracts.)

59. Where bidders were prequalified, the updated prequalification information supplied with bid with special reference

to current financial status and work commitments acquired since prequalification, should be verified and regardless of prequalification, contract should not be awarded to a bidder who is found lacking the financial and technical resources required to undertake the work at the time of award.

16 ICB Procedures

60. In the case of civil works, if the bid of the successful bidder is seriously unbalanced in relation to the engineer's

estimate of the cost of work, Performance Security should be increased to a level sufficient to protect the Department against financial loss in the event of subsequent default of the successful bidder under the contract.

If the contract is being let on a “Slice and Package” basis, the lowest evaluated bid price (the combined cost of all

the lots) will be determined in conjunction with other contracts to be awarded concurrently taking into account any discounts offered by the bidders for the award of more than one contract.

61. If extension of bid validity is required, it should be sought from all bidders before stipulated expiration date (for

valid bids only) and not from the lowest alone, and the Bank notified. The extension shall be for the minimum period required to complete the evaluation. In the case of fixed price contracts, if the award is delayed by a period exceeding 4 weeks beyond the expiry of the initial bid validity, the contract price will be adjusted by a factor specified in the request for extension. Bank’s prior concurrence is required if the extension is longer than 4 weeks beyond the original validity period.

62. In case of pre-review contracts, evaluation report and recommendations for award along with comparative statement

should be sent to the Bank for review and clearance before communicating award of contract. All decision of award are to be published in UNDB-online and in dgMarket as detailed in Para 2.60 of the New

Guidelines. The aggrieved bidders should be debriefed as stated in para 2.65 of the guidelines. Rejection of Bids 63. Regardless of value, if all bids are proposed to be rejected and bids are to be reinvited, the Bank should be consulted before such action. Bank does not favour negotiations. 64. In the case of civil works, the system of rejecting bids outside a predetermined margin or "bracket" of prices should

not be used without prior clearance with the Bank. Performance Security 65. Performance security should be obtained for the prescribed amount and in an acceptable form in the currency of the

contract in accordance with the conditions of the contract. Additional security should be taken to cover the risks of unbalanced bids in case of civil works.

66. Performance security should normally remain valid as stipulated in the bidding document. 67. Failure of the successful bidder to sign the contract or furnish performance security within the specified period shall

constitute sufficient grounds for the annulment of the award and forfeiture of the bid security in which event the purchaser/department may make the award to the next lowest evaluated bidder or call for new bids.

Review by the Bank 68. A conformed copy of the agreement in respect of pre-review contracts should be forwarded to the Bank along with

the prescribed checklist duly filled (Enclosure VIII and IX) for clearance and assignment of WBR number. 69. For post review contracts, minutes of prebid conference, complete item rate comparative statement, evaluation

report leading to recommendations for award, and one conformed copy of the agreement along with the prescribed checklist (Enclosure X and XI) duly filled in should be forwarded to the Bank within ten days of agreement for necessary clearance. World Bank, in addition, has appointed independent Auditors to conduct post-review of the cases on a selective basis in the Project office.

70. Applications for reimbursement will not be considered for contracts without WBR number for prior review cases.

17 ICB Procedures

Consultation with and Information to the Bank 71. Before agreeing to any material modification or waiver of the terms and conditions, or granting a material extension

of the stipulated time for performance of such contract, or issuing any change order under a contract, which would in aggregate increase the original amount of the contract by more than 15% of the original price, Bank's clearance must be obtained. This is required for all agreements valued at $ 100,000 and above as well as for those which would increase the value of the contract to $100,000 and above. Format for seeking Bank's clearance is enclosed (Enclosure XII).

Sub-contracting in civil works 72. All bidders are expected to indicate clearly in the bid, if they proposed sub-contracting elements of the works

amounting to more than 10 percent of the Bid Price. For each such proposal the qualification and the experience of the identified sub-contractor in the relevant field should be furnished alongwith the bid to enable the employer to satisfy himself about their qualifications before agreeing for such sub-contracting and include it in the contract.

In view of the above, normally no additional sub-contracting should arise during execution of the contract. Of course the contractor shall not be required to obtain any consent from the employer for:

a) the sub-contracting of any part of the Works for which the Sub-contractor is named in the contract;

b) the provision of labour; and

c) the purchase of materials which are in accordance with the standards specified in the Contract.

Beyond this if the contractor proposes sub-contracting any part of the work during execution of works, because of some unforeseen circumstances to enable him to complete the work as per terms of the contract, the principles to be followed by the Engineer before agreeing to that proposal is given below:

- The contractor shall not sub-contract the whole of the Works.

- The contractor shall not sub-contract any part of the Work without prior consent of the Engineer.

Any such consent shall not relieve the contractor from any liability or obligations under the contract and he shall be responsible for the acts, defaults and neglects of any sub-contractor, his agents or workmen as fully as if they were the acts, defaults or neglects of the contractor, his agents or workmen.

- The Engineer should satisfy (a) whether circumstances warrant such sub-contracting; and (b) that the

sub-contractors so proposed for the Work posses the necessary experience, qualifications and equipment for the job proposed to be entrusted to them in accordance with the quantum of work to be sub-contracted.

- If payments are proposed to be made directly to that sub-contractor, this should be agreed only

subject to specific authorization by the prime contractor so that this arrangement does not alter the contractor's obligation.)

Note: 1. Sub-contracting for certain specialized elements of works is acceptable for carrying out the works

more effectively; but vertical splitting of the works for sub-contracting is not acceptable. 2 In any case, proposal for sub-contracting in addition to what was specified in bid and stated in

contract agreement will not be acceptable if the value of such additional sub-contracting exceeds 25% of value of work which was to be executed by Contractor without sub-contracting.

Dispute Review Boards 73. Kindly see Enclosure XVII for letter of appointment etc.

18 ICB Procedures

Enclosure I & II

ATTACH “PROCUREMENT SCHEDULE FOR CIVIL WORKS” [PAGE 18.1] AND

ATTACH “PROCUREMENT SCHEDULE FOR GOODS AND EQUIPMENT” [PAGE 18.2]

19 ICB Procedures

Enclosure III

SAMPLE FORMAT FOR GENERAL PROCUREMENT NOTICE

[NAME OF COUNTRY] [NAME OF PROJECT] GENERAL PROCUREMENT NOTICE Loan/Credit No. This general procurement notice updates1 that published in Development Business No. [insert number] of [insert date].2 The [insert name of borrower] [has received/has applied for/intends to apply for] a [loan/credit] from the [International Bank for Reconstruction and Development (IBRD)/International Development Association (IDA)] in the amount of US$ [insert loan/credit amount] equivalent toward the cost of the [insert name of project], and it intends to apply the proceeds of this [loan/credit] to payments for goods, works, related services and consulting services to be procured under this project.3 The project will include the following components [insert description].4 Procurement of contracts financed by the [loan/credit] will be conducted through the procedures specified in the World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits, January 1995 (revised January and August 1996, September 1997 and January 1999), and is open to all bidders from eligible source countries as defined in the guidelines.5 Consulting services will be selected in accordance with the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January 1997 (revised September 1997 and January 1999 and May 2002). Specific procurement notices for contracts to be bid under the World Bank's international competitive bidding (ICB) procedures and for large-value consultants' contracts will be announced, as they become available, in Development Business [and/or the names of technical magazines, newspapers and trade publications of wide international circulation and in local newspapers].6 Prequalification of suppliers and contractors will be required for the following contracts [insert names of contracts if known].7 Interested eligible bidders who wish to be included on the mailing list to receive an invitation to [prequalify/bid] under ICB procedures, and interested consultants who wish to receive a copy of the advertisement requesting expressions of interest for large-value consultants' contracts, or those requiring additional information, should contact the address below. [Insert name of office] [Insert name of officer] [Insert postal address and/or street address] Tel: [Indicate country and city code] Fax: [Indicate country and city code] E-mail: 1. Insert this paragraph for GPN updates only.

2. Day, month, year; for example, 31 January 1998.

3. [Insert the following if applicable]. This project will be jointly financed by [insert name of cofinancing

agency]. Bidding for contracts financed by the World Bank will be governed by its eligibility rules and procedures.

20 ICB Procedures

4. Describe the main project components, including consulting services, and, if available, include a brief description of the goods, works and services to be procured under ICB procedures financed from the proceeds of the loan/credit.

5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of member countries. When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference that may be granted as specified in the loan or credit agreement and set forth in the bidding documents.

6. If known, the dates of issuance of the specific procurement notices for goods, works, prequalification, and the dates of issuance of requests for expressions of interest for large-value consultants' contracts (above US$ 200,000) shall be given.

7. Insert this sentence only if applicable.

21 ICB Procedures

Enclosure IV

Example of Prequalification Advertisement Prequalification for Road Works Contracts

This notice for specific works follows the General Procurement Notice for this project which appeared in 'Development Business,' number ..............., dated ................., 199......... The Government of Gondwanaland, through its Ministry of Transportation, has applied for (received) a Loan (Credit) from the World Bank (International Development Association) equivalent to about US$ 42 million for development of the national road system. It is intended that proceeds of this (proposed) Loan (Credit) will be applied to the payments under the contracts for which this prequalification is required. These contracts are : (i) Construction of the Alpha-Beta Highway consisting of approximately 17 km of two-lane all-weather road.

(Contracts 1-4). (ii) Supply and installation of four steel or reinforced concrete bridges along the Alpha-Beta Highway costing

a total of about US$ 7.5 million equivalent. (Contracts 5-8). (iii) Construction of approximately 64 km of gravel secondary roads in Alpha and Beta Provinces. (Contracts

9-14). These contracts in each of packages (i) to (iii) will be bid concurrently through international competitive bidding (ICB) procedures under the Guidelines for Procurement of the World Bank (May, 1985). Qualified domestic contractors are eligible to receive a 7-1/2 percent preference in bid evaluation in accordance with World Bank Guidelines.1. It is expected that bids will be invited in early 199. Contractors from World Bank-eligible countries who have previous experience with similar works are invited to prequalify for one or more of these contracts. Evaluation will be based on the firm's experience, capacity and financial standing with emphasis on experience on similar work in tropical countries. Joint ventures between foreign and domestic firms are encouraged, but are not mandatory. Prequalification forms and further information may be obtained at no cost by request in writing, or by fax or telex, sent to : Procurement Officer, Alpha-Beta Project Ministry of Transportation Presidential Building, room 417 Capitol City, Gondwanaland Telex : 47-5957; Fax : 47-5960; Telephone: 126 427; Ext. 21. The closing date for prequalification is .............., 199............

1 only where applicable. Refer para ....

22 ICB Procedures

Invitation for Pre-qualification SPECIFIC PROCUREMENT NOTICE

SAMPLE FORMAT FOR INVITATION FOR PREQUALIFICATION

[NAME OF COUNTRY] [NAME OF PROJECT] [BRIEF DESCRIPTION OF GOODS/WORKS] Loan [Credit] No. Invitation for Prequalification This invitation for prequalification follows the general procurement notice for this project that appeared in Development Business No. [insert number] of [insert date].1 The [insert name of borrower] [has received/has applied for/intends to apply for] a [loan/credit] from the [International Bank for Reconstruction and Development (IBRD)/International Development Association (IDA)] toward the cost of the [insert name of project], and it intends to apply part of the proceeds of this [loan/credit] to payments under the contract for [insert name/no. of contract -- if prequalification is being invited for more than one contract, describe each contract and indicate whether applications may be made for prequalification for one or more of the contracts].2 The [insert name of implementing agency] intends to prequalify contractors and/or firms for [insert description of works or goods to be procured].3 It is expected that invitations to bid will be made in [insert month and year].4 Prequalification will be conducted through prequalification procedures specified in the World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits, January 1995 (revised January and August 1996 and September 1997 and January 1999), and is open to all bidders from eligible source countries, as defined in the guidelines.5 Interested eligible bidders may obtain further information from and inspect the prequalification documents at the [insert name of agency] (address below) [state address at end of document] from [insert office hours].6 A complete set of prequalification documents in [insert name of language] may be purchased by interested bidders on the submission of a written application to the address below and upon payment of a nonrefundable fee7 of [insert amount in local currency] or in [insert amount in specified convertible currency]. The method of payment will be [insert method of payment].8 The document will be sent by [insert delivery procedure].9 Applications for prequalification should be submitted in sealed envelopes, delivered to the address below10 by [insert date],11 and be clearly marked "Application to Prequalify for [insert name of project and the contract name(s) and number(s)]." [Insert name of office] [Insert name of officer] [Insert postal address and/or street address] Tel: [Indicate country and city code] Fax: [Indicate country and city code] E-mail: ________________________________________ 1. Day, month, year; for example, 31 January 1998. 2. [Insert the following if applicable]. This contract will be jointly financed by [insert name of cofinancing agency]. Bidding will be governed by the World Bank's eligibility rules and procedures. 3. A brief description of the works or goods should be provided, including quantities, location of project, and other

23 ICB Procedures

information necessary to enable potential bidders to decide whether or not to respond to the invitation. Bidding documents may require bidders to have specialized experience or capabilities; such requirements should also be included in this paragraph. 4. Insert this sentence if applicable. 5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of member countries. When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference that may be granted as specified in the loan or credit agreement and set forth in the bidding documents. 6. For example, 0900 to 1200 hours. 7. The fee, to defray printing and mailing/shipping costs, should be nominal. 8. For example, cashier's check, direct deposit to specified account No., etc. 9. The delivery procedure is usually airmail for overseas delivery and surface mail or courier for local delivery. If urgency dictates, courier services may be required for overseas delivery. 10. The office for bid opening may not necessarily be the same as that for inspection or issuance of documents or for bid submission. If they differ, each address must appear at the end of the notice and be numbered; as, for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and its address may be specified for submission, and it should be near the place where bids will be opened. 11. The time allowed for preparation of the prequalification submission should be sufficient for applicants to gather all the information required, but in any case not less than six weeks after the date the documents are available or the last date of the advertisement, whichever is later. This period may be longer for very large projects, for which more time may be needed for the formation of joint ventures and assembly of the necessary resources.

24 ICB Procedures

Enclosure V

SPECIFIC PROCUREMENT NOTICE SAMPLE FORMAT FOR INVITATION FOR BIDS

[NAME OF COUNTRY] [NAME OF PROJECT] [BRIEF DESCRIPTION OF GOODS/WORKS] Loan/Credit No. Contract/Bid No. This invitation for bids follows the general procurement notice for this project that appeared in Development Business No. [insert number] of [insert date].1 The [insert name of borrower] [has received/has applied for/intends to apply for] a [loan/credit] from the [International Bank for Reconstruction and Development (IBRD)/International Development Association (IDA)] toward the cost of the [insert name of project], and it intends to apply part of the proceeds of this [loan/credit] to payments under the contract for [insert name/no. of contract].2 The [insert name of implementing agency] now invites sealed bids from eligible bidders for [insert description of goods or works to be procured].3 The delivery/construction period is [insert No. of days/months/years or dates].4 Bidding will be conducted through the international competitive bidding procedures specified in the World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits, January 1995 (revised January and August 1996, September 1997 and January 1999), and is open to all bidders from eligible source countries as defined in the guidelines.5 Interested eligible bidders may obtain further information from and inspect the bidding documents at the [insert name of agency] at the address below [state address at end of document] from [insert office hours].6 A complete set of bidding documents in [insert name of language] may be purchased by interested bidders on the submission of a written application to the address below and upon payment of a nonrefundable fee7 of [insert amount in local currency] or in [insert amount in specified convertible currency]. The method of payment will be [insert method of payment].8 The document will be sent by [insert delivery procedure].9 Bids must be delivered to the address below by [insert time and date]. All bids must be accompanied by a bid security of [insert amount in local currency or minimum percentage of bid price] or an equivalent amount in a freely convertible currency.10 Late bids will be rejected. Bids will be opened in the presence of bidders' representatives who choose to attend at the address below11 at [insert time and date]. [Insert name of office] [Insert name of officer] [Insert postal address and/or street address] Tel: [Indicate country and city code] Fax: [Indicate country and city code] E-mail: __________________________________________________________________

25 ICB Procedures

1. Day, month, year; for example, 31 January 1998.

2. [Insert the following if applicable.] This contract will be jointly financed by [insert name of cofinancing

agency]. Bidding will be governed by the World Bank's eligibility rules and procedures. 3. A brief description of the type(s) of goods or works should be provided, including quantities, location of

project, and other information necessary to enable potential bidders to decide whether or not to respond to the invitation. Bidding documents may require bidders to have specific experience or capabilities; such restrictions should also be included in this paragraph.

4. Insert this sentence if applicable.

5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of member countries. When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference that may be granted as specified in the loan or credit agreement and set forth in the bidding documents.

6. For example, 0900 to 1200 hours.

7. The fee, to defray printing and mailing/shipping costs, should be nominal.

8. For example, cashier's check, direct deposit to specified account No., etc.

9. The delivery procedure is usually airmail for overseas delivery and surface mail or courier for local delivery. If urgency or security dictates, courier services may be required for overseas delivery.

10. The amount of bid security should be stated as a fixed amount or as a minimum percentage of the bid price. Alternatively, if a bid security is not required (often the case in supply contracts), the paragraph should so state.

11. The office for bid opening may not necessarily be the same as that for inspection or issuance of documents. If they differ, each address must appear at the end of the notice and be numbered; as, for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and its address may be specified for submission, and it should be near the place where bids will be opened.

26 ICB Procedures

Invitation for Bids (IFB)

[ insert: name of Country ]

[ insert: name of Project ]

[ insert: loan / credit number ]

[ insert: IFB Title ]

[ insert: IFB Number ]

1. This Invitation for Bids follows the General Procurement Notice for this Project that appeared in Development Business, issue no. [insert number] of [insert date].1

2. The [insert name of Borrower] [has received/has applied for/intends to apply for] a [loan/credit] from the [International Bank for Reconstruction and Development/International Development Association] toward the cost of [insert name of Project], and it intends to apply part of the proceeds of this [loan/credit] to payments under the Contract for [insert name/no. of Contract].2

3. The [insert name of Implementing Agency] now invites sealed bids from eligible and qualified bidders for [insert brief description of the Goods to be procured].3, 4

4. Bidding will be conducted through the International Competitive Bidding (ICB) procedures specified in the World Bank’s Guidelines: Procurement under IBRD Loans and IDA Credits, and is open to all bidders from Eligible Source Countries as defined in the Guidelines.5

5. Interested eligible bidders may obtain further information from [insert name of Agency; insert name and e-mail of officer in charge] and inspect the Bidding Documents at the address given below [state address at end of this ITB] from [insert office hours].6

6. Qualifications requirements include: [insert a list of technical, financial, legal and other requirements]. A margin of preference for eligible national contractors [insert “shall” or “shall not” be applied, as appropriate]. Additional details are provided in the Bidding Documents.

7. A complete set of Bidding Documents in [insert name of language] may be purchased by interested bidders on the submission of a written Application to the address below [state address at the end of this ITB] and upon payment of a non refundable fee7 [insert amount in local currency] or in [insert amount in specified convertible currency]. The method of payment will be [insert method of payment].8 The Bidding Documents will be sent by [insert delivery procedure].9

8. Bids must be delivered to the address below [state address at the end of this ITB] at or before [insert time and date]. Electronic bidding will [will not] be permitted. Late bids will be rejected. Bids will be opened in the presence of the bidders’ representatives who choose to attend in person or on-line at the address below [state address at end of this ITB] at [insert time and date]. All bids must be accompanied by a [insert “Bid Security” or “Bid-Securing Declaration,” as appropriate] of [insert amount in local currency or minimum percentage of bid price in case of a Bid Security] or an equivalent amount in a freely convertible currency.10, 11

9. The address(es) referred to above is(are): [insert detailed address(es) including Name of the Implementing Agency, Office designation (room number), name of Officer, Street address, City (code), Country; insert electronic address if electronic bidding is permitted ].

__________________________

1. Day, month, year; for example, 31 January 1996. 2. [Insert if applicable: “This contract will be jointly financed by [insert name of cofinancing agency]. Bidding will be governed by the World Bank’s

eligibility rules and procedures.”]

27 ICB Procedures

3. A brief description of the type(s) of Goods or Works should be provided, including quantities, location of Project, and other information necessary to enable potential bidders to decide whether or not to respond to the Invitation. Bidding Documents may require bidders to have specific experience or capabilities; such requirements should also be included in this paragraph.

4. [Insert: “the delivery/construction period is [insert no. of days/months/years or dates”]. 5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of member countries.

When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference that may be granted as specified in the Loan or Credit Agreement and set forth in the Bidding Documents.

6. For example, 09.00AM to 5.00 PM. 7. The fee, should defray the printing and mailing/shipping costs); it should not deter competition. 8. For example, cashier’s check, direct deposit to specified account number. 9. The delivery procedure is usually airmail for overseas delivery and surface mail or courier for local delivery, or by electronic means if electronic

bidding is permitted. If urgency or security dictates, courier services may be required for overseas delivery. 10. The amount of Bid Security should be stated as a fixed amount or as a minimum percentage of the Bid Price. Alternatively, if a Bid Security or a Bid-

Securing Declaration is not required (often the case in supply contracts), the paragraph should so state. 11. The office for Bid Opening may not necessarily be the same as that for inspection or issuance of documents or for Bid Submission. If they differ, each

address must appear at the end of paragraph 7 and be numbered; as, for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and its address may be specified for submission of bids, and this location should be as close as possible to the place where bids will be opened to shorten the time between Bid Submission and Bid Opening.

28 ICB Procedures

Form of Invitation for Bids2

[letterhead paper of the Employer] 3

[date] To: [name of Contractor]

[address]

Reference: [Insert IBRD Loan No. or IDA Credit No.]

Contract Name, and Identification No. ________ / ________4

Dear Sirs:

We hereby inform you that you are prequalified for bidding for the above cited contract. A list of prequalified and conditionally prequalified Applicants is attached to this invitation.

On the basis of information submitted in your application, you would [not] (insert if appropriate) appear eligible for application of the domestic bidder price preference in bid evaluation. Eligibility is subject to confirmation at bid evaluation.

We now invite you and other prequalified Applicants to submit sealed bids for the execution and completion of the cited contract.

You may obtain further information from, and inspect and acquire the bidding documents at, our offices at [mailing address, street address, and cable/telex/facsimile numbers].5

A complete set of bidding documents may be purchased by you at the above office, on or after [time and date] and upon payment of a nonrefundable fee of [insert amount and currency].6

All bids must be accompanied by a security in the form and amount specified in the bidding documents, and must be delivered to [address and exact location] at or before [time and date]. Bids will be opened immediately thereafter in the presence of bidders’ representatives who choose to attend.7

Please confirm receipt of this letter immediately in writing by cable, fax, or telex. If you do not intend to bid, we would appreciate being so notified also in writing at your earliest opportunity.

Yours truly,

Authorized signature Name and title Employer

2 This sample “Form of Invitation for Bids” is a basic form that should be adapted appropriately by the Employer to cover the following points as required: • the conditions, if any, for prequalification, stating explicitly the deficiencies that must be corrected to meet al the conditions and the time to

fulfill them before bid submission; • in slice and package bidding, the number of individual contracts (slices) or the specified ceiling amount in total value for which the Applicant is

qualified; and • the finalization of preliminary joint venture agreement and any modifications required. 3 The Borrower and the Employer may be the same or different entities. The text of the Invitation for Bids and the texts of the other documents herein must be footnoted to indicate which agency will act as the Employer. 4 The Employer should insert the name and identification number of a single contract, or for concurrent slice and package bidding, those of individual contracts (slices) within the package for which Applicants expressed a preference, and for which they are prequalified. 5 The office for inquiries and issue of bidding documents and the office for bid submission may or may not be the same. The place of bid opening may also differ and, if so, should be identified. 6 The chargeable fee should only be nominal, to cover reproduction and mailing costs. An amount of between US$50 and US$500 equivalent is considered appropriate, depending on the size and complexity of the works and the bidding documents. 7 Coordinate this paragraph with Clause 25 of Section II, Instructions to Bidders, “Bid Opening.” Also see footnote 4.

29 ICB Procedures

Enclosure VI

SUGGESTED FORMAT OF BID EVALUATION REPORT FOR CIVIL WORKS (ICB)

1. Scope of contract and approximate cost: - Outline brief description of works covered by bid invitation.

- Compare project cost estimate with the actual cost of the proposed contract with explanations for difference. 2. Bidding document: Furnish the following details and discuss in brief: - Approval by World Bank/Government;

- Variations from the approved document, if any;

- Specifications and drawings (approval);

- Implementation schedule and stipulated time for completion; and

- Important bidding conditions (in brief), such as, price adjustment, domestic preference, if any, etc. (Do not repeat them; briefly refer to them).

(Enclose copy of bidding document with amendments if any, if not sent earlier — Annex I) 3. Bid invitation process: Furnish the following details and discuss: - Date of publication of General and Specific Procurement Notice in U.N. Development Business *; - Bid invitation advertisement in national newspapers and dates of publication * ; - Period in which the bidding documents were made available for sale; - Number of bidders who purchased the bidding documents and their nationality; - Date of closing and extensions, if any; - Prebid conference (dates, place and attendance), minutes of meeting and resulting amendments, if any; and - Date and time of public bid opening, attendance, highlights of the bid opening meeting, etc. (Enclose copies of Bid Invitation, Prebid minutes, copies of amendments issued, minutes of bid opening -

Annexes II, III, IV and V) * Where bidders are prequalified, the reference to Bank’s no objection to prequalification, no. of bidders

prequalified, and the date of issue of bid invitation to them should be furnished.

30 ICB Procedures

4. Bid response: - State number of offers received and the nationality.

- Furnish details of offers received: - Check whether the bids claiming domestic preference meet the criteria specified in ITB Clause 32 and

comment with details (If they don’t meet, re-classify) Group: In time Late Total Domestic Others ________________________________________ Total

- Comment on the response (too few, expected number, more than expected and reasons thereof) - Convert bid prices to Rupees (indicate exchange rates used and source — Annex VI) - Furnish table of bid prices as read out at the bid opening meeting and as converted: Sl.No. Name of bidder Nationality Bid price Bid price Remark as quoted in Rupees and read out 5. Clarifications sought and responses received, if any after bid opening. 6. Preliminary examination of bids: - Discuss preliminary examination for eligibility (ITB Clause 3), arithmetical errors, completeness, legal

validity (has been properly signed and has submitted power of attorney etc.), bid validity, bid security and substantial responsiveness to commercial and technical aspects of bidding documents.

- List arithmetical errors and corrected bid prices. - furnish details of all bids in Annexure VII. - List the bids rejected as non responsive at this stage. Sl. No. Name of bidder Bid price Brief reasons for rejection 7. Evaluation of substantially responsive bids: - State evaluation criteria and methodology cross referencing to bid documents, assumptions made, if any in

evaluation (Annex VIII).

- Discuss separately for domestic and other bidders conditions if any and loading of bid prices for accepted deviations for commercial and technical aspects.

- Prepare evaluation table showing the rankings in ascending order as under: Group Name of Bidder Rank Bid Price in Evaluated bid

31 ICB Procedures

Rupees price in Rupees Domestic

Others

1 2 3 1 2 3

(Furnish details as in Annex IX) - Discussion of offers: - Domestic bidders · Other bidders · Domestic preference · Determination of lowest evaluated responsive bid after taking into consideration domestic preference. . Comments on unbalanced item bids, if any. 8. Subcontracting

- Comment on subcontracting proposed and discuss qualification/experience of subcontractors determining whether it is acceptable.

9. Postqualification/Verification for prequalified bidders: - State criteria if any outlined in the bid document. - Furnish actual qualification of selected bidder and determine whether the selected lowest evaluated

responsive bidder is qualified to satisfactorily perform the contract. [To qualify for a package of contracts made up of this and other contracts for which bids are invited, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for the individual contracts.]

- If the determination is negative, bid of the lowest bidder will have to be rejected and the next lowest

evaluated bid considered to make a similar determination of bidder's capability to perform satisfactorily. (Details in Annex X) - Discuss bid capacity – Attach calculation sheet to show how they possess the capacity. 10. Construction Methodology: - Discuss the proposed construction methodology and other details of the selected bidder [submitted by him in

terms of Clause 5.3 of ITB] and comment on its acceptability. 11. Recommendations: - Furnish important features of bid recommended for award such as: - Advances

- Price adjustments, if any

- Performance security

32 ICB Procedures

- Additional security proposed for unbalanced bids, if any

- Bid validity

- Stipulated period of completion

- Other important terms and conditions 12. Value of contract proposed for approval: Currency Amount Amount in Equivalent Rupees

1.

2. 3.

Total in Rupees

(Enclose contract information sheet of selected bidder — Annex XI) Signature of Evaluating Officer Approval of Competent Authority Enclosures (enclose only those which were not forwarded earlier): 1. Copy of bidding document (Annex I) 2. Copy of bid invitation and press advertisement (Annex II) 3. Prebid minutes (Annex III) 4. Copies of amendments issued (Annex IV) 5. Minutes of bid opening (Annex V) 6. Currency exchange rate as published by competent authority (Annex VI) 7. Assessment of bids (Annex VII) 8. Assumptions made in evaluation (Annex VIII) 9. Comparative Statement of Offers (Annex IX) 10. Details of post-qualification/verification of prequalified bidders (Annex X) 11. Contract information of selected bidder (Annex XI)

33 ICB Procedures

Annex VII/1

Assessment of Bids Sl. No.

Particulars Bidder 1.....................

Bidder 2.....................

Bidder 3.....................

Bidder 4 .....................

Bidder 5.....................

1. Name of Bidder

2. Country of Origin

3. Classification (Group A / B) Have you verified and established that bids claiming domestic preference do meet criteria stipulated in ITB Clause 32. If yes, attach details

4. Total Bid Price : (a) in Bid Currency/ Currencies

(b) in Indian Rupees after conversion

5. Credentials ----------------------- Letter of Authorization

6. Commercial Assessment*

7. Technical Assessment*

8. Decision on Responsiveness

9. Capacity cum Capability* Assessment (Post / Pre Qualification)

* For details see attachment.

34 ICB Procedures

Annex VII/2

EVALUATION OF THE BIDS Analysis for Responsiveness of Bid: Sl. No.

Particulars and Clause Reference

Name of Bidder 1 .....................

Name of Bidder 2 .....................

Name of Bidder 3 .....................

1. Validity of Bid

ITB 16

2. Bid Security

ITB 17

5.1 Form of Bid Security

5.2 Bank and Branch

5.3 Expiry Date

5.4 Amount

3. Letter of Authorization

ITB 20.2

4. Bid Form

ITB 13.1

5. Exceptions to Clauses, if any

6. Price Adjustment, if any

ITB 14.4

7. Bid Currency

ITB 15.1

8. Unbalanced bids, if any

ITB 31.5

9. Technical Deviations, if any

10. Decision on Commercial Responsiveness

Note: [a] Add parameters as required to suit the item under procurement and as specified in your bidding

document. [b] Bid Security of a Joint Venture must be in the name of all the partners in the Joint Venture submitting the

bid.

35 ICB Procedures

Annex VIII

Brief details of Assumptions made in Evaluation a) b) c) d)

36 ICB Procedures

Annex IX

Comparative Statement of Offers Sl. No.

Item of Bill of Quantities Quantity Unit Estimate Bidder 1 Bidder 2

Rate in Rs.

Value in Rs.

Rate in Rs.

Value in Rs.

Rate in Rs.

Value in Rs.

Grand Total:

37 ICB Procedures

Annex X

Post Qualification

Criteria as specified in the bidding document*

Bidder 1

Bidder 2

Bidder 3

1.

2.

3.

4.

Note: 1(*). List all criteria specified in the bidding document and give comments on how bidder meets or fails in

criteria. 2. Give details for the recommended bidder and other lower bidders whose offer is evaluated as non-

responsive / who have been determined as not meeting with this criteria.

38 ICB Procedures

Annex XI

Details of recommended offer

RUPEES FOREIGN CURRENCIES TOTAL IN 1

.................. 2

.................. 3

..................

RUPEES

1. Value of bid, currency-wise

2. Advances: Mobilization/Equipment

3. Performance Security

4. Additional Performance Security for Unbalanced bids, if any

5. Retention money

6. Milestones to be achieved

7. Liquidated damages for different milestones

39 ICB Procedures

Enclosure VII

SUGGESTED FORMAT OF BID EVALUATION REPORT FOR GOODS & EQUIPMENT (ICB) 1. Scope of contract and approximate cost: - Outline brief description of Goods and Services covered by the bid invitation.

- Compare the project cost estimate with the actual cost of the proposed contract with explanation for difference.

2. Bidding document: Briefly discuss and indicate: - Details of approval by World Bank/Government

- Variations from the approved document, if any

- Specifications (Approval reference, if any)

- Requirement of accessories/spares, if any

- Delivery requirements

- Important bidding conditions such as: (Do not repeat the condition; briefly refer to them.) * price adjustment * adjustments for: (a) delivery schedule (b) payment schedule (c) performance and productivity (d) operating and maintenance costs - domestic preference [Enclose copy of bidding documents and amendments if any, if not sent earlier (Annex I)] 3. Bid invitation process: Furnish the following details: - Date of publication of General and Specific Procurement Notice in UN Development Business - Bid invitation advertisement in national News papers and dates of publication - Period in which the bidding documents were made available for sale - Number of firms who purchased the bidding documents and their nationality - Date of closing and extensions, if any - Pre-bid conference (date, place and attendance), minutes of meeting and resulting amendments, if any;

and - Date and time of public bid opening, attendance, highlights of the bid opening meeting etc. [Enclose copies of Bid Invitation, Prebid minutes, copy of amendments issued and minutes of bid opening (Annexes II, III, IV and V).]

40 ICB Procedures

4. Bid response: - State number of offers received and the nationality

- Furnish details of offers received along with comments on bidder’s classification of bids :

- Check whether the bids claiming the domestic preference meet the criteria specified in Section III of SBD/Goods – Para 1 and comment on this with details. If they do not meet re-classify them.

Group In Time Late Total Comments A B C Total : (Note: Group A & B Bidders should quote ex-factory, ex-showroom, ex-warehouse or Off-the-Shelf as applicable and not as partly CIF covering imported components and partly on ex-

factory covering local costs. Group C Bidder can quote vice versa) - Comment on the response (too few, expected number, more than expected, and reasons thereof) - Convert bid prices to Indian Rupees (indicate exchange rates used and source — Annex VI) - Furnish Table of bid prices as read out at bid opening (in ascending order): Sl.No Name of bidder Nationality Bid price Bid price Remarks as quoted in Rupees and read out 5. Clarifications sought and responses received, if any, after bid opening: 6. Preliminary examination of bids: - Discuss preliminary examination for eligibility (ITB Clause 4 and 5), arithmetical errors, completeness, legal

validity (has been properly signed and has submitted power of attorney etc.), bid validity, bid security and substantial responsiveness to commercial and technical aspects of bidding documents.

- List arithmetical errors and corrected bid prices - List reservations if any of Group A bids to the note on deemed export benefits (Clause 14.6 of ITB) and

discuss responsiveness of such offers. - Furnish details of all bids in Annexure - VII. - List the bids rejected as non-responsive at this stage. Sl. No. Name of bidder Bid price Brief reasons

7. Evaluation of substantially responsive bids: - State evaluation criteria, methodology cross referencing to bid documents, assumptions, if any, made in

evaluation (Annex VIII).

41 ICB Procedures

- Discuss briefly offers and adjustments, if any: Commercial aspects: - omissions - inland transportation - delivery schedule - deviation in payment schedule - spare parts - operation and maintenance - performance and productivity etc. Technical aspects: - efficiency - productivity - training etc. - Prepare evaluation table showing all adjustments and ranking as under: Group Rank Name of bidder/ Evaluated CIP Manufacturer/Agent destination price in Rupees A 1 2 3 B 1 2 3 C 1 2 3 (Details in Annex IX) - Brief discussion of offers: - Group A Group B Group C - Determination of the lowest evaluated responsive bidder from Groups A and B. - Discuss application of domestic preference with justification of domestic bids' eligibility for preference

and the level of prevailing import duties on the goods. - Determination of the lowest evaluated responsive bid from Groups A, B and C for award by taking into

account domestic preference. 8. Post qualification: - State criteria, if any, outlined in the bid document.

42 ICB Procedures

- Discuss actual qualification of selected bidder to demonstrate whether the selected lowest evaluated responsive bidder is qualified to satisfactorily perform the contract. (If the determination is negative, lowest bid will have to be rejected and the next lowest evaluated bid considered for a similar determination of bidder's capability to perform satisfactorily.) [To qualify for a package of contracts made up of this and other contracts for which bids are invited, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for the individual contracts. ]

(Details in Annex X) 9. Recommendations: - Furnish important features of recommended bid such as: - Bidders name - Model, quantity and total bid price for: · basic machine · list of tools · list of special accessories · list of 2 years maintenance spares Total: ____________ (in currency of bid) - Source of origin - Payment terms - Agency commission - Delivery - Inspection - Insurance - Freight - Performance security - Specifications - Other important terms and conditions - Date of expiry of validity of the selected bid. (Enclose contract information sheet of selected bidder, Annex XI) Signature of Evaluating officer Approval of competent Authority Enclosures (enclose only those which were not forwarded earlier): 1. Copy of bidding document (Annex I) 2. Copy of bid invitation and press advertisement (Annex II) 3. Prebid minutes (Annex III) 4. Copies of amendments issued (Annex IV) 5. Minutes of bid opening (Annex V) 6. Currency exchange rate as published by competent authority (Annex VI) 7. Details of assessment of bids (Annex VII) 8. Assumptions made in evaluation (Annex VIII) 9. Evaluated bid prices of offers (Annex IX) 10. Details of post-qualification (Annex X) 11. Contract information of selected bidder (Annex XI)

43 ICB Procedures

Annex VII/1

Assessment of Bids Sl. No.

Particulars

Name of Bidder 1

.....................

Name of Bidder 2

.....................

Name of Bidder 3

.....................

Name of Bidder 4

.....................

Name of Bidder 5

.....................

1. Manufactured by

2. Country of Origin

3. Indian Agent

4. Classification (Group A / B / C) Have you verified and established that bids claiming domestic preference do meet the criteria stipulated in ITB Clause 10.2. [If yes, attach details]

`

5. Model Offered

6. Model Number

7. Total Bid Price and Currency

8. FOB Value / Ex-Works Currency

9. CIF Value in bid currency (foreign) and in

In Foreign Currency

Indian rupees In Indian Rupees

10. Cost per unit as per Bid Document in Indian Rupees

11. Credentials ----------------------- Letter of Authorization

12. Commercial Assessment*

13. Technical Assessment*

14. Decision on Responsiveness

* For details see attachment.

44 ICB Procedures

Annex VII/2

EVALUATION OF THE BIDS Commercial Analysis for Responsiveness of Bid: Sl. No.

Particulars and Clause Reference

Name of Bidder 1 .....................

Name of Bidder 2 .....................

Name of Bidder 3 .....................

1.

Model Offered

2. Model No.

3. Manufd. By

4. Country of Origin

ITB 5

5. Bid Security

ITB 21

5.1 Form of Bid Security

5.2 Bank and Branch

5.3 Expiry Date

5.4 Amount

6. Validity of Bid

ITB 20

7. Letter of Authorization

ITB 19

8. Bid Form

ITB 11

9. Exceptions to:

Delivery;

ITB 36.3(d)(a)

Payment Terms; and

ITB

36.3(d)(b)

Others

10. Bid Currency

ITB 15

11. Performance Statement

ITB 18

45 ICB Procedures

Annex VII/3

Sl. No.

Particulars and Clause Reference

Name of Bidder 1 .....................

Name of Bidder 2 .....................

Name of Bidder 3 .....................

12. Decision on Commercial Responsiveness

Note: [a] Add parameters as required to suit the item under procurement and as specified in your bidding document. [b] Bid security of a Joint Venture must be in the name of all the partners of the Joint Venture submitting the bid.

46 ICB Procedures

Annex VII/4

Technical Evaluation of the Bids : Sl. No.

Particulars Technical Clause Reference

Name of Bidder 1 .....................

Name of Bidder 2 .....................

Name of Bidder 3 .....................

1.

Model No

2. Mfd. By

3. Model Type

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Decision on Technical Responsiveness

1. List the mandatory and optional features which are checked and compared as detailed in your technical

specifications to determine on conformity to technical specifications. 2. This should also cover all deviations listed by bidder in response to Clause 14.3 (c) of ITB.

47 ICB Procedures

Annex VIII

Brief details of Assumptions made in Evaluation a) b) c) d)

48 ICB Procedures

Annex IX Page 1 of 2

Comparative Statement of Responsive Offers

Items Price Bidder's Name Bidder's Name Bidder's Name

(Groups A and B separately) Cost per unit (in Rs.)

1. Ex-factory/ ex-showroom/ ex-warehouse or Off-the-Shelf prices

2. Excise duty (if quoted separately)

3. Packing & forwarding charges

4. Inland freight

5. Insurance

6. Other charges, if any

TOTAL

7. Discounts, if any

8. Total unit cost as quoted

9. No. to be supplied

10. Total cost as quoted

11. Delivery period offered

12. Delivery period adjustment

13. Payment terms adjustment

14. Other adjustments

15. Total evaluated price with adjustment

16. Ranking

49 ICB Procedures

Annex IX Page 2 of 2

Items Price Converted to Indian Rupees

Bidder's Name and Country

Bidder's Name and Country

Bidder's Name and Country

Group C Cost per unit (in Rs.)

1. a) CIF including agency commission as quoted per machine

b) Ex-factory price (for items supplied locally from India)

2. Port clearance & incidentals

3. Inland Freight

4. LC charges, if any

5. Other charges per unit, if any

TOTAL 6. Discounts, if any

7. Total unit cost

8. No. to be supplied

9. Total cost

10. Delivery period offered

11. Delivery period adjustment

12. Payment term adjustment

13. Other adjustments

14. Total evaluated price with adjustment

15. Adjustment for domestic preference [15% of 1(a) above]

16. Total evaluated price after adjustment for domestic preference

17. Ranking

50 ICB Procedures

Annex X

Post Qualification

Criteria as specified in the bidding document*

Bidder 1

Bidder 2

Bidder 3

1.

2.

3.

4.

Note: 1(*). List all criteria specified in the bidding document and give comments on how bidder meets or fails in

criteria. 2. Give details for the recommended bidder and other lower bidders whose offer is evaluated as non-

responsive / who have been determined as not meeting with this criteria.

51 ICB Procedures

Annex XI

Details of Recommended Offer

Name of Bidder___________________________________________ Sl. No.

Name of Item

Specification or Part No.

Unit

Qty.

Rate

Value*

1.

Basic item

2.

List of Tools

3.

List of special accessories and spares

4.

List of spares for 2- year maintenance

5.

Total Cost*

* All values in Bid Currency

52 ICB Procedures

Enclosure VIII

PROCUREMENT CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD FOR CIVIL WORKS

1. Name of the Project : ............................................................... 2. Procurement Package Number and Procurement

Plan reference : ............................................................... 3. Description of works : ............................................................... 4. Estimated cost of Works : ............................................................... 5. Stipulated time of completion : ............................................... (in months) (including non-working season) 6. Type of contract : ICB/LCB 7. Whether the bidders were prequalified and, if so, : Yes/No attach details as per Annexure I. 8. Date of clearance of bidding document by the Bank : ............................................................... 9. Date of invitation of price bids : ............................................................... 10. * When the bid notice was published in UNDB? : ............................................................... 11. Publicity : 1. ............................................................ (National press - Name and Date of publication) : 2. ............................................................ : 3. ............................................................ 12. Dates when the bidding documents were made : From ....................... to ............................ 13. Number of bidding documents purchased by : ................................................................ prospective bidders a) Domestic : ................................................................ b) Foreign : ................................................................ 14. Prebid conference held on : ................................................................ (Schedule it at about 2/3rd of bidding time) 15. Date of clearance of prebid conference minutes : ................................................................ by the Bank 16. Last date of receipt and date of opening : ................................................................ of bids (both should be the same) 17. Number of bids received : ................................................................ a) Domestic : ................................................................ b) Foreign : ................................................................

53 ICB Procedures

18. Date of clearance of award by the Bank : ................................................................ (No objection cable) 19. Award amount as cleared by the Bank : Currency Amount ................... .................. 20. Amount of contract* : Currency Amount ................... .................. 21. Date of signing of the Contract : ................................................................ 22. Contract Number : ................................................................ 23. Name and nationality of the contractor : ................................................................ 24. Whether the contract includes price adjustment Clause? : Yes/No 25. Date of start of work : ................................................................ 26. Stipulated period of completion : ................................................................ 27. Performance Security : Percentage Deduction Total not a) Amount and currencies in proportion to the Initial (%) from bills (%) exceeding (%) currencies of payment .............. ................ .................

b) Additional Security for unbalanced bids if any : .............. ................ .................

c) Defects liability period : ................................................... months

d) Validity as required : .................................................... months

e) Has the successful bidder furnished the performance security in various currencies in an acceptable form as stipulated in the bid document? Indicate i) Form : ................................................................ ii) Amount : ................................................................ iii) Validity : ................................................................ (Attach copy of Instrument) 28. Reasons for delay, if any, in forwarding the : ................................................................ conformed copy of the contract. (Contracts along ................................................................ with the checklist, should be forwarded to the Bank ................................................................ within ten days of signing of agreement) ................................................................ 29. Any other remarks (attach sheet, if necessary) : ................................................................ ................................................................ ................................................................ 30. Has the letter of appointment to agreed Dispute : ................................................................ Review Board members or adjudicator been issued ................................................................ ................................................................ 31. Date of publication of award in UNDB/dgMarket as per Para 2.60 of the Guidelines : ………………………………………….. _________________________________________________________________________________ * Clarify reasons for variations if any from the value as cleared by the Bank vide S. No. 20

54 ICB Procedures

Signature: ........................................... Name: ........................................... Designation: ........................................... Date: ..................................

55 ICB Procedures

ANNEXURE 1

PREQUALIFICATION DETAILS

1. Date of clearance of prequalification document by the Bank : ................................ 2. Date of invitation of prequalification : ......................................................... 3. * When the prequalification notice was published in UNDB? : ........................................................... 4. Publicity: (National press - Name and Date : 1......................................................... of publication) 2......................................................... 3......................................................... 5. Dates when prequalification documents were made available for sale : From....................to............................. (ICB - 45 to 90 days/ LCB - 30 to 60 days) 6. Last date of receipt of prequalification application : ........................................................... and date of opening 7. Date of prequalification conference : ........................................................... (Schedule it at about 2/3rd of the time given to applicants) 8. Date of clearance of prequalification conference minutes by the Bank? : ............................................................ 9. No. of applicants who a) purchased the prequalification documents : ........................................................... - Domestic : ........................................................... - Foreign : ........................................................... b) submitted the prequalification applications : ........................................................... - Domestic : ........................................................... - Foreign : ........................................................... c) are prequalified : .......................................................... - Domestic : .......................................................... - Foreign : .......................................................... d) Date of clearance of prequalifcation by Bank : ........................................................... Signature ............................................. Name................................................... Designation .......................................... Date ............................... * To be filled for ICB contracts only

56 ICB Procedures

Enclosure IX PROCUREMENT

CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD GOODS AND EQUIPMENT

1. Name of the Project : ........................................................... 2. Procurement Package Number : ........................................................... 3. Procurement Plan reference : ........................................................... 4. Description of Goods : ........................................................... 5. Estimated cost of Goods : Rs................................................lakhs 6. Stipulated time of completion : ............................................(in months) 7. Type of contract : ICB / LCB 8. Whether the bidding document was cleared by : Yes / No the Bank? If yes, When? Give reference : ........................................................... 9. Date of invitation of bids : ........................................................... 10. 1When the bid notice was published in UNDB? : ........................................................... 11. Publicity : : 1.......................................................... (National press - name and date of publication) : 2......................................................... : 3......................................................... 12. Dates when the bidding documents were made available for sale (ICB - 45 to 90 days/ LCB - 30 to 90 days) : From........................to.......................... 13. Number of bidding documents purchased by prospective bidders : ............................................................ - Domestic : ............................................................

- Foreign : ............................................................

14. Prebid conference held on (Schedule it at : ............................................................ about 2/3rd of bidding time) 15. Date of clearance of prebid : ............................................................ conference minutes by the Bank 16. Last date of receipt and date of opening of bids : ............................................................ (both should be the same) 17. Number of bids received : ............................................................

- Domestic : ............................................................

- Foreign : ............................................................

______________________________________________ 1 To be filled for all ICB contracts only

57 ICB Procedures

18. Date of clearance of award by the Bank (No objection cable) : ............................................................ 19. Award amount as cleared by the Bank : Currency Amount ................... ....................... 20. Amount of contract * : Currency Amount .................... ....................... 21. Date of signing of the agreement : ............................................................ 22. Contract number : ............................................................ 23. Name and nationality of the supplier : ............................................................ ............................................................ 24. Whether the contract includes price adjustment clause ? : Yes / No 25. Date of start : ............................................................ 26. Stipulated time of completion : ............................................................ 27. Performance security : ........................................................% a) Amount in the currency of contract : ......................................................... b) Warranty period : .................................................months c) Stipulated time of completion plus warranty period : ............................................................ d) Has the successful bidder furnished the performance security in an acceptable form in the specified currency as stipulated in the bidding document valid as required? Indicate i) Form : ........................................................... ii) Amount : ........................................................... iii) Validity : ........................................................... (Attach a copy of the instrument) 28. Reasons for delay, if any, in forwarding the : ............................................................ conformed copy of the contract ............................................................ (contract, along with the checklist should ............................................................ be forwarded to the Bank within ten days ............................................................ of signing of agreement) ............................................................

58 ICB Procedures

29. Any other remarks (attach sheet, if necessary) : ........................................................... ........................................................... ............................................................ ............................................................ 30. [a] Does the contract provide for Dispute Review : ………………………………………. Expert or its equivalent? [b] If so, has the letter of appointment to agreed : ………………………………………. Dispute Review Expert been issued? 31. Date of publication of award details in UNDB/ : ……………………………………….. dgMarket in accordance with Para 2.60 of the Guidelines Signature ......................................... Name ......................................... Designation ......................................... Date ............................... --------------------------------------------------------------------------------------------------------------------------------- * Clarify reasons for variations if any from the value as cleared by the Bank vide S.No. 20

59 ICB Procedures

Enclosure X PROCUREMENT

CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS FOR CIVIL WORKS

1. GENERAL : 1.1 Name of Project : ............................................................ 1.2. Procurement Package Number and Procurement Plan Reference : ............................................................ 1.3. Description of works : ............................................................ 1.4. Estimated cost of works : Rs.................................................lakhs 1.5. Stipulated period of completion : .............................................(in months (including non-

working season) from the date of award) 1.6. Whether the method of procurement adopted is in accordance with the Project Agreement : i) Yes/No ii) ICB/LCB 2. BIDDING DOCUMENT : 2.1 Whether bidding document used for this work is according to the standard model cleared? : Yes/No (CWC or Bank's SBD) 2.2 If no, list the deviations from standards: : 1.......................................................... 2.......................................................... 3.......................................................... 2.3 Whether Package and Slices procedure has been : Yes/No adopted? If so, have you suitably modified the clause for submission and evaluation of bids 2.4 Whether price adjustment clause provided? : Yes/No (Provide when period of completion is more than 18 months) Ensure that total percentage of labour : Percentages contractor's materials and POL equals 100, if Labour Materials POL 'R' in the formula represents net value of ........... ............ ...... work done. 2.5 Whether bill of quantities and specifications properly checked? : Yes/No (Provide schedule of quantity for each slice separately and also one schedule for the combined work, i.e., for the package group in the same bidding document). 2.6 Bid Security: a) Whether the guidelines have been followed in : Yes/No fixing the Bid Security? If not, give reasons.

60 ICB Procedures

b) What is the percentage/amount? : ......................................................... (No exemption should be permitted to any : ...................%.............Rs................... bidder or any class of bidders) Rupees............................................... 2.7 Whether any preference on price or other conditions : Yes/No allowed in the bidding document/award for any bidder or class of bidders? If yes, list the preferences. (No preferential treatment should be given to any bidder or class of bidders either for price or for conditions unless specifically cleared with the Bank and stipulated in the Project Agreement.) 2.8 Does the bidding document provide for advances? : Yes/No If so, give details. .......................................................... What is the interest rate on advances? : ........................................................%

2.9 a) What is the performance security specified in the bidding document : Percentage Total Initial Deduction not (Value M) from bills exceeding (%) ......... .............. ............. 2.10 Cost of bidding documents : Rs................................................... 3.0 BID INVITATION AND ISSUE OF BIDDING DOCUMENTS: 3.1 Whether the bids for this work were rejected previously and are being reinvited? If yes, whether : Yes/No Bank's clearance was obtained? Give reference (Bids should not be rejected without Bank's prior ............................................................ consultation - ref. para 2.61 of Procurement Guidelines) 3.2 Date of invitation of bids : ............................................................ 3.3 Publication of NIT. : 1.......................................................... (give names of national newspapers and date 2.......................................................... of publication) 3.......................................................... 3.4 (a) Dates when bidding documents were made available for sale; (b) Sale period should generally be 30 to 90 days; if not, specify reasons. : from......................to........................... 4.0 PRE-BID CONFERENCE 4.1 Date of pre-bid conference (Schedule it at about 2/3rd of bidding time) : ............................................................ 4.2 Whether pre-bid minutes were cleared with the Bank? When? : Yes/No ........................................ 4.3 Was any amendment issued after pre-bid conference? : Yes/No

61 ICB Procedures

5.0 SALE AND RECEIPT OF BIDDING DOCUMENTS: 5.1 Last date of receipt of bids and the date of opening of bids. (Both should be the same) : ........................................................... 5.2 No. of documents purchased by prospective bidders : ........................................................... 5.3 No. of bids received : .......................................................... 6.0 EVALUATION : 6.1 Has award been made to the lowest responsive : Yes / No bidder? (Give rank lowest, or second lowest or third lowest, etc. Award should be made to the lowest responsive bidder.) 6.2 Give reasons for ignoring lower offers if the : .......................................................... lowest bidder is not awarded. .......................................................... 6.3 a) Has the bidder who has been awarded : Yes/No the contract furnished information about his capability and financial resources in response to stipulations made in ITB? b) Are you satisfied that he has the : ............................................................ appropriate standards of capability ............................................................ and financial resources to execute ............................................................ the work as required on the basis of ............................................................ information furnished? Comment briefly. ............................................................ c) Does he meet the minimum criteria for : Yes/No qualification, if any, specified in the bidding document? 6.4 Does the recommendation for award confirm that : Yes/No minutes of pre-bid conference were circulated to all prospective bidders? 6.5 Is the award to the lowest responsive bidder : Yes/No conditional? (Refer para 2.59 of Procurement Guidelines) 6.6 Were any negotiations held with the bidders after : Yes/No opening of bids? If yes, whether Bank's clearance ........................................................... was obtained before holding negotiations and when? If Bank's clearance was not obtained why? : ............................................................ (Bank does not favour any negotiations.) 6.7 Whether the award was made within the original : Yes/No bid validity? i) if no, list the reasons for delay : ...........................................................

62 ICB Procedures

a) date of opening : ........................................................... b) date of award : ............................................................ ii) if extension of bid validity was sought, : Yes/No was that from all bidders and not from the lowest alone? iii) was the period of extension exceeded 4 weeks? : Yes / No iv) if affirmative, was Bank's clearance obtained? : Yes / No v) if Yes, indicate date of clearance : ........................................................... 7.0 AWARD OF CONTRACT : 7.1 Name of contractor : .......................................................... 7.2 Date of award of contract : .......................................................... 7.3 Date of signing of contract : .......................................................... 7.4 Contract value as awarded : Rs...................................................... 7.5 Contract number and date : .......................................................... 7.6 Date of start of work : .......................................................... 7.7 Stipulated time of completion of work : .......................................................... 8.0 PERFORMANCE SECURITY : 8.1 Defects liability period : ..................................................months 8.2 Validity as required : ..................................................months 8.3 Has the successful bidder furnished performance : ............................................................ security in an acceptable form in various currencies, in accordance with conditions of contract? : Yes/No If so, indicate a) Amount and currencies in proportion to the currencies of payment : Rs........................................................ b) Form : ............................................................ c) Validity : ............................................................ (Performance security should remain valid as required -- Attach a copy of the instrument) 9.0 ENCLOSURES : 9.1 Have the following been enclosed? i) Minutes of pre-bid meeting : Yes/No ii) Complete item rate comparative statement : Yes/No iii) Note leading to recommendations for the award (evaluation report) : Yes/No iv) One conformed copy of agreement : Yes/No 10. Reasons for delay, if any, in forwarding the : ....................................................... contract agreement. (The agreement should ....................................................... be forwarded for post review by the Bank ....................................................... within ten days of signing of the agreement ....................................................... with all the enclosures.)

63 ICB Procedures

11. General : (Any other relevant information concerning : .......................................................... the above procurement) ........................................................... ........................................................... 12. Has the letter of appointment to Dispute : Yes / No Review Board members/adjudicator been issued 13. Date of publication of award in UNDB/dgMarket : ……………………………………… As per Para 2.60 of the Guidelines Signature............................................... Name ................................................... Designation........................................... Date .............................

64 ICB Procedures

Enclosure XI PROCUREMENT

CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS FOR GOODS AND EQUIPMENT

1. GENERAL : 1.1 Name of Project : ............................................................ 1.2. Procurement Package Number and Procurement : ............................................................ Plan Reference 1.3. Description of Goods : ............................................................ ............................................................ 1.4. Estimated cost of Goods : Rs.................................................lakhs 1.5. Stipulated period of completion : .............................................(in months from the date of award) 1.6. Whether the method of procurement adopted is in accordance with the Project Agreement : i) Yes / No ii) ICB / LCB 2. BIDDING DOCUMENT : 2.1 Whether bidding document used for this work is according to the standard model? : Yes / No Cleared with the Bank? 2.2 If no, list the deviations from standards: : 1..........................................................

2..........................................................

3.......................................................... 2.3 Whether price adjustment clause provided? : Yes / No (Provide when period of completion is more than 18 months) 2.4 Bid Security

a) Whether the guidelines have been followed in : Yes / No fixing the Bid Security ? If no, give reasons. ..........................................................

b) What is the percentage/amount? : ...................%................Rs................. (No exemption should be permitted to any Rupees................................................. bidder or any class of bidders) 2.5 Whether any preference on price or other conditions : Yes / No allowed in the bidding document/award to any bidder or class of bidders? If yes, list the preferences. (No preferential treatment should be given to any bidder or class of bidders either for price or for conditions unless specifically cleared with the Bank and stipulated in the Project Agreement)

65 ICB Procedures

2.6 Does the bidding document provide for advances? : Yes / No If so, give details. .......................................................... What is the interest rate on advances? : .........................................................% 2.7 Specified performance security in the bidding document - Percentage : ........................................................% 2.8 Cost of bidding documents : Rs...................................................... 3. BID INVITATION AND ISSUE OF BIDDING DOCUMENTS: 3.1 Whether the bids for this item(s) were previously rejected and are being reinvited? If yes, whether : Yes / No Bank's clearance was obtained? Give reference (Bids should not be rejected without Bank's prior ............................................................ consultation - ref. para 2.61 of Procurement Guidelines) 3.2 Date of invitation of bids : ............................................................ 3.3 Publication of NIT : 1.......................................................... (give names of national newspapers and date 2.......................................................... of publication) 3.......................................................... 3.4 Dates when bidding documents were made available for sale: (should generally be : from .....................to............................ 30 to 60 days; if not, specify reasons?) 4. PRE-BID CONFERENCE 4.1 Date of pre-bid conference (Schedule it at about 2/3rd of bidding time) : ............................................................ 4.2 Whether pre-bid minutes were cleared with the Bank? If yes, when? : Yes / No ............................................... 4.3 Was any amendment issued after pre-bid conference? : Yes / No 4.4 Whether minutes of prebid conference and amendment : Yes / No transmitted to all the prospective bidders 5. SALE AND RECEIPT OF BIDDING DOCUMENTS 5.1 Last date of receipt of bids and the date of opening of bids (Both should be the same) : ........................................................... 5.2 No. of documents purchased by prospective bidders : ........................................................... 5.3 No. of bids received : .......................................................... 6.0 EVALUATION

66 ICB Procedures

6.1 Has award been made to the lowest responsive : Yes / No bidder who satisfies the minimum qualification criteria specified in the bidding document (Give rank lowest, or second lowest or third lowest, etc.) 6.2 Give reasons for ignoring lower offers if the : .......................................................... lowest bidder is not awarded .......................................................... 6.3 b) Are you satisfied that he has the appropriate : ............................................................ standards of capability and financial resources ............................................................ to execute the supply as required on the basis of ............................................................ information furnished? Comment Briefly ............................................................ 6.4 Is the award to the lowest responsive bidder : Yes/No conditional? (Refer para 2.59 of Procurement Guidelines) 6.5 Were any negotiations held with the bidders after : Yes / No opening of bids? If yes, was Bank's clearance obtained before negotiations and when? If Bank's clearance was not obtained, why ? (Bank does not favour negotiations) 6.6 Whether the award was made within original : Yes / No bid validity? i) If no, list all reasons for delay and give : ........................................................... a) date of opening : ........................................................... b) date of award : ............................................................ ii) If extension of bid validity was sought, : Yes / No was that from all bidders and not from the lowest alone? iii) Was the period of extension exceeded 4 weeks ? : Yes / No iv) If affirmative, was Bank’s clearance obtained ? : Yes / No v) If Yes, indicate date of clearance : ......................................................... 7.0 AWARD OF CONTRACT 7.1 Name of Supplier : ..........................................................

7.2 Date of award of contract : ..........................................................

7.3 Date of signing of contract : ..........................................................

7.4 Contract value as awarded : Rs......................................................

7.5 Contract number and date : ..........................................................

7.6 Date of start : ..........................................................

7.7 Stipulated time of completion : ..........................................................

67 ICB Procedures

8.0 PERFORMANCE SECURITY 8.1 Specified warranty period : ..................................................months 8.2 Validity as required : ..................................................months 8.3 Has the successful bidder furnished performance : Yes / No security in an acceptable form in specified currency as per conditions of contract as required? If so, indicate. a) Amount in the currency of the contract : ............................................................ b) Form : ............................................................ c) Validity : ............................................................ (Attach copy of instrument) 9.0 ENCLOSURES 9.1 Have the following been enclosed ? i) Minutes of pre-bid meeting : Yes / No ii) Complete item rate comparative statement : Yes / No iii) Note leading to recommendations for the award (evaluation report) : Yes / No iv) One conformed copy of agreement : Yes / No 10. Reasons for delay, if any, in forwarding the : ....................................................... contract agreement. (The agreement should ....................................................... be forwarded for post review of the Bank within ....................................................... ten days of signing of the agreement with all the ....................................................... enclosures) 11. GENERAL (Any other relevant information concerning : .......................................................... the above procurement) ........................................................... ........................................................... ........................................................... 12. Date of publication of award in UNDB/dgMarket : ……………………………………… As per Para 2.60 of the Guidelines Signature ....................................... Name ....................................... Designation ....................................... Date .............................

68 ICB Procedures

Enclosure XII Format for seeking Bank's Clearance for increase in

Contract Value beyond 15% of the Original Contract Value as well as for granting extension of the stipulated time for performance of the contract

(For all Agreements valued $ 100,000 and above as amended) Credit/Loan No....................

Name of the Project .......................................... Sub Project .................................... 1. WBR No. ............

2. Contract No. (Agreement) ....................................... and date................................

3. Name of Contractor ..................................................................................

4. Description of work ..................................................................................

5. a) Original Contract Value ..................................................................................

b) Anticipated increased contract value as of date ........................................................................

6. Bank's no objection to the contract communicated on ........................................................................

7. a) Completion date as per contract ........................................................................

b) Completion date as revised now ........................................................................

c) Expected date of completion ........................................................................

8. Amount of increase in contract value anticipated .......................................................................

% w.r.t original contract value ........................................................................

9. Breakup for the increase in value of contract due to :

a) Price Adjustment ........................................................................

b) Extra Items ........................................................................

c) Variation in Quantities ........................................................................

d) Contract or Claims ........................................................................

i) Arbitration ........................................................................

ii) Other reasons ........................................................................

Total ........................................................................

10. Comments on reasons for the ........................................................................

increase in contract value as well as ........................................................................

reasons for extension of the stipulated time ........................................................................

for performance. (use additional sheet where ........................................................................ necessary)

Chief Engineer........................ Superintending Engineer............................

................................................ ...................................................................

69 ICB Procedures

Enclosure XIII

CRITERIA FOR PRE OR POST QUALIFICATION

(For Indian conditions – Sample for Guidance – For ICB we have to use SBD provisions only)

1. CIVIL WORKS : A. The applicant/bidder in his/its name must be a well established civil engineering contractor with three years

experience and capability in construction of ....................................................................................................................................................................... ....................................................................................................................................................................... ....................................................................................................................................................................... ....................................................................................................................................................................... B. To be qualified for award of the Contract, bidders shall provide evidence satisfactory to the Employer of their

capability and adequacy of resources to carry out the Contract effectively. Bids shall include the following information :

i) copies of original documents defining the constitution or legal status, place of registration and

principal place of business; written power of attorney of the signatory of the bid to commit the bidder;

ii) total annual turnover expressed as total volume of construction work performed in each of the last five years;

iii) performance as prime contractor on works of a similar nature and volume over the last five years and

details of other works in hand and contractual commitments; clients who may be contacted for further information on these contracts;

iv) major items for construction equipment proposed for carrying out the Contract;

v) the qualifications and experience of key site management and technical personnel proposed for

administration and execution of the Contract, both on and off site;

vi) proposals for subcontracting elements of the Works amounting to more than 20 percent of the Bid Price for each element; (for each proposal the qualifications and experience of the identified subcontractor in the relevant field should be annexed)

vii) reports on the financial standing of the bidder/applicant including profit and loss statements, balance

sheets and auditor's reports for the past five years, and an estimated financial projection for the next two years;

viii) evidence of access to lines of credit, and availability of other financial resources;

ix) authority to seek references from the bidder's bankers;

x) information regarding any litigation or arbitration resulting from contracts executed by the Bidder in

the last five years or currently under execution. The information shall include the names of the parties concerned, the disputed amount, cause of litigation, and matter in dispute;

xi) a statement establishing that the bidder/applicant (including all members of a joint venture) and his

subcontractors are not associated, nor have been associated in the past, directly or indirectly, with the consultant or any other entity having prepared the design, specifications, and other bidding documents for the project or being proposed as Engineer for the Contract; and

70 ICB Procedures

xii) a general description on the approach to the construction methods, technologies proposed, type and schedule of equipment proposed to be used, etc. for ensuring completion of the work within the desired timeframe (for pre-qualification only).

or

xii) the proposed methodology of construction, backed with their construction equipment planning and deployment, duly supported with broad calculations and quality control procedures proposed to be adopted, justifying their capability of achieving the completion of work as per milestones specified within the stipulated period of completion (for post-qualification only).

C. Bids submitted by a joint venture of two or more firms as partners shall comply with the following

requirements: (i) the bid shall include all the information listed in Sub-Clause B (i) to (v) and (vii) to (xi) above for

each joint venture partner and paras (vi) and (xii) for the joint ventures; (ii) the bid shall be signed so as to be legally binding on all parties; (iii) one of the partners shall be nominated as being in charge and this authorization shall be evidenced by

submitting a power of attorney signed by legally authorized signatories of all the partners; and (iv) the bid shall include a proforma of the joint venture agreement which will state, inter alia, that all

partners shall be liable jointly and severally for the execution of the Contract and that the partner in charge shall be authorized to incur liabilities and receive instructions for and on behalf of any and all partners, and the entire execution of the Contract including payments shall be done exclusively with the partner in charge.

v) the bid and performance securities of a JV shall be issued so as to commit fully all partners to the

proposed Joint Venture. D. To qualify for award of the Contract, each bidder or applicant in its/their name should have in the last five

years, i.e.………….*. (i) achieved, in at least two financial years, a minimum annual financial turnover (in all classes of civil

engineering construction only) at least of value Rs.... M (two times the estimated annual cash flow in the contract);

(ii) satisfactorily completed (not less than 90% of contract value) as a prime contractor or as sub-

contractor (subcontracting to be certified by the employers/main contractors), at least one similar work (—————————) of value not less than Rs.————— M (80% of estimated value);

(iii) The contractor or his identified sub-contractor should possess required valid electrical license for

executing the building electrification works and should have executed similar electrical works totalling Rupees............** in any one year.

(iv) The contractor or his identified sub-contractor should possess required valid license for executing the

water supply/sanitary engineering works and should have executed similar water supply/sanitary engineering works totalling Rupees..................** in any one year.

** at least 50% of the estimated value

* specify the financial years; they should be those immediately preceding the financial years preceding in which the bids re received (v) executed in any one year the following minimum quantities of work:

71 ICB Procedures

- cement concrete work of not less than —————— cum in any one year (80% of the expected peak rate of construction);

- earth work in both excavation and embankment (combined quantities) of not less than ————— cum in any one year (80% of the expected peak rate of construction);

- —————————————————— ——————————————————

(specify additional criteria as required

(For domestic bidders, turnover as well as cost of completed works of previous years shall be given weightage at the rate of 5% per year (current inflation) based on the rupee value to bring them to ———— price level.)

E. Each applicant should further demonstrate (This is verified at bidding stage only): (i) availability (either owned or leased or by procurement against mobilization advances) of key and

critical equipment for this work as detailed below (list the details of minimum critical equipment required);

—————————————————— —————————————————— (ii) availability for this work of a project manager with no less than five years experience in construction

of similar civil engineering works and other key personnel with adequate experience as required; and (iii) that they have access to financial resources sufficient in a contract cash flow for three months at the

peak construction period, namely, Rs.——— M (credit lines or letter of credit or solvency certificate from banks, etc.).

F. The figures for each of the partners of a joint venture shall be added together to determine the bidder's

compliance with the minimum qualifying criteria of Sub-Clauses D and E above; however, for a joint venture to quality, each of its partners must meet at least 25 percent of minimum criteria set in Sub-clause D above for an individual bidder and the lead partner at least 50 percent of those minimum criteria. Failure to comply with this requirement will result in rejection of the joint venture's bid.

G. To qualify for a package of contracts, the bidder must demonstrate having experience and resources sufficient

to meet the aggregate of the qualifying criteria for the individual contracts included in the IFB, which make up the package in question.

H. Sub-contractors' experience and resources shall not be taken into account in determining the bidder's

compliance with the qualifying criteria except to the extent stated in para D (iii) and (iv) above. I. Bidders who meet the minimum qualification criteria will be qualified only if their available bid capacity is

more than the total estimated cost of the works, for which he has offered his bid. The available bid capacity will be calculated as under:

Assessed Available Bid Capacity = (A*N*1.5-B), where A = Maximum value of Civil Engineering works executed in any one year during the last five

years (updated to the current price level) which will take into account the completed as well as works in progress;

72 ICB Procedures

B = Value at current price level of the existing commitments and on-going works to be completed during the next ——— years (period of completion of works for which bids are invited); and

N = Number of years prescribed for completion of the works for which the bids are invited

Note: The statements showing the value of existing commitments and on-going works as well as the stipulated period of completion remaining for each of the works listed should be countersigned by the Engineer-in-charge, not below the rank of Executive Engineer.

This is verified at bidding stage only.

J. Applicants meeting the above criteria, are nevertheless subject to be disqualified if they have: - made misleading or false representations in the form, statements and attachments submitted in proof

of the qualification requirements; and/or - record of poor performance such as abandoning the work, not properly completing the contract,

inordinate delays in completion, litigation history, or financial failures etc; and/or

73 ICB Procedures

II. GOODS AND EQUIPMENT:

Sample 1 1. (i) The bidder shall be a manufacturer, who has designed, manufactured, supplied, erected,

commissioned ......................................................equipment of similar type and capacity of at least ……% of the quantity [usually not less than 80% of the requirement] in any one of the last 3 years. The product offered for supply upto ………… [quantity] should be in successful operation for …… years on the date of bid opening (modify as appropriate). Further, Bidder should be in continuous business of manufacturing products similar to that specified in the schedule of requirements during the last three years prior to bid opening.

(ii) Bidders who meet the above requirements except for successful operation for … years, can also

participate in the bidding provided they have valid ongoing collaboration agreement (under which the quantity indicated in (i) above has been manufactured) with a manufacturer who in turn fully meets the criteria specified at (i) above, provided the bidder furnishes alongwith the bid a legally enforceable undertaking jointly executed by himself and the collaborator for satisfactory design, manufacture, erection, commissioning and performance of the equipment offered including all warranty obligations as per General and Special Conditions of Contract.

(iii) Bids of bidders quoting as authorized representative of a manufacturer, meeting with the above

requirements in full, can also be considered, provided: a) the manufacturer furnishes a legally enforceable authorization in the prescribed form assuring

full guarantee and warranty obligations as per GCC and SCC; and b) the bidder, as authorized representative, has supplied, installed and satisfactorily

commissioned and provided after sales service (modify as appropriate) for at least 30% of the quantity specified in the Schedule of Requirements in any one of the last 3 years which must be in satisfactory operation for at least one year on the date of bid opening.

Note: Where bids are invited in multiple packages for same/similar items insert the following as Clause (iv):

(iv) To qualify for a package of contracts made up of this contract and other contracts for which bids are invited in the IFB, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for individual lots of all such contracts.

2. The bidder should furnish a brief write-up, backed with adequate data, explaining his available capacity (both

technical and financial), for manufacture and supply of the required goods/equipment, within the specified time of completion, after meeting all their current commitments.

3. Notwithstanding anything stated above, the purchaser reserves the right to assess the Bidders capabilities and

capacity to execute the contract satisfactorily before deciding on award; 4. ................ If considered necessary, specify in addition minimum annual turnover as specified for civil works).

74 ICB Procedures

Sample 2

QUALIFICATION REQUIREMENTS

(Supply, Supervision of Erection and Commissioning and Supply, Erection and Commissioning of Equipment only)

1. (a) The bidder should be a manufacturer who must have manufactured, tested and supplied the equipment (s)

similar to the type specified in the ‘Schedule of Requirements’ upto at least ....... % [indicate the percentage as considered appropriate – usually not less than 80% of the requirement] of the quantity indicated in Schedule of Requirements in any one of the last 3 years. The equipments offered for supply upto ……….. [quantity] should have been in successful operation for at least ......... years as on date of bid opening. Further the bidder should be in continuous business of manufacturing products similar to that specified in the schedule of requirements during the last three years prior to bid opening.

(b) Bidders who are subsidiaries and have recently established production line in India for the product for which bids are invited, can also be considered as meeting with the criteria, provided the parent company (Principals) meets with the above criteria in full and agrees to furnish {either jointly with the bidders (Subsidiary) or separately} [a] a legally enforceable undertaking to guarantee quality, timely supply, performance and warranty obligations as specified for the contract; and [b] performance security as stipulated in GCC and SCC. [Sample Format attached]

(c) Bids of bidders quoting as authorized representative of a manufacturer, meeting with the above requirements

in full, can also be considered, provided : (i) the manufacturer furnishes a legally enforceable authorization in the prescribed form assuring full

guarantee and warranty obligations as per GCC and SCC for the goods offered; and

(ii) the bidder, as authorized representative, has supplied, installed and satisfactorily commissioned and provided after sales service for at least 80 % of the quantity specified in the Schedule of Requirements in any one of the last 3 years which must be in satisfactory operation for at least one year on the date of bid opening.

Note: Where bids are invited in multiple packages for same/similar items insert the following as Clause (d):

(d) To qualify for a package of contracts made up of this contract and other contracts for which bids are invited in the IFB, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for individual lots of all such contracts.

2. The bidder should furnish the information on all past supplies and satisfactory performance for both (a) and (c)

above, in specified proforma . 3. All bids submitted shall also include the following information : (i) Copies of original documents defining the constitution or legal status, place of registration and principle

place of business of the company or firm or partnership, etc.

(ii) The bidder should furnish a brief write-up, backed with adequate data, explaining his available capacity and experience (both technical and commercial) for the manufacture and supply of the required equipment within the specified time of completion after meeting all their current commitments.

(iii) The bidder should clearly confirm that all the facilities exist in his factory for inspection and testing and these will be made available to the Purchaser or his representative for inspection.

(iv) Reports on financial standing of the Bidder such as profit and loss statements, balance sheets and auditor’s report for the past three years, bankers certificates, etc.

NOTE : [THIS IS TO BE MODIFIED AS APPROPRIATE FOR EACH TYPE OF EQUIPMENT – FOR

JV/CONSORTIUM SEE SAMPLE 3]

75 ICB Procedures

SAMPLE AUTHORIZATION

Attachment ……..

Format of Undertaking from parent Company (Parent Company’s Letter Head)

To: [INSERT: Name of purchaser] We [Insert: Name of Parent Company] who are established and reputable manufacturers of [Insert: Name and/or description of the plant and equipment] having production facilities at [Insert: address of factory] do hereby authorize our subsidiary [Insert: name and address of Bidders] (hereinafter, the “Bidder”) having production facilities at [Insert: address of factory] to submit a bid, and subsequently negotiate and sign the contract with you against IFB [Insert: title and reference number of Invitation for Bids] including the above plant and equipment or other goods produced by us/our subsidiary. In case the contact is awarded to said subsidiary, ………agree to submit the performance security as stipulated in Clause …….of GCC and Clause ……of SCC for due performance of the contract in accordance with the stipulations of contract agreement confirming full guarantee and warranty for the above specified plant and equipment materials or other goods offered and undertake to guarantee the quality, timely supply, installation and achieving Operational acceptance including performance and obligation of the plant and equipment by the Bidder against these Bidding Documents. For and on behalf of the Parent Company Signed: _______________________________________ Date: _______________________________________ In the capacity of [Insert: title of position or other appropriate designation]and duly authorized to sign this Authorization and on behalf of [Insert: name of Parent Company] Date: __________________ (Signature) ___________________ Place: __________________ (Printed Name) ________________ (Designation) _________________ (Common Seal) ________________ Note 1. The letter of Undertaking should be on the letterhead of the Parent Company and should be signed by

a person competent and having Power of Attorney to legally bind the Parent Company. It shall be included by the Bidder in its Bid.

2. Above undertaking shall be registered or notarized so as to be legally enforceable.

76 ICB Procedures

Sample 3

Additional Qualification Requirement in case of Joint Venture – Goods/Equipment [Conductors, Pipes, Cables etc.]

Suggested provisions on Joint Venture [JV] or consortiums in the case of Goods/ Equipments: Bids from two or more firms as partners shall comply with the following requirements. (i) The bid, and in case of a successful bid the Form of Agreement, shall be signed by all the partners so as to be legally

binding on all partners; (ii) One of the partners shall be nominated as being incharge; and this authorization shall be evidenced by submitting a

power of attorney signed by legally authorized signatories of all partners; (iii) The partner incharge shall be authorized to incur liabilities and receive instructions for and on behalf of any and all

partners of the Joint Venture and the entire execution o the contract including payment shall be done exclusively with the partner incharge;

(iv) Bid and performance securities of a Joint Venture must be in the name of Joint Venture submitting the bid; (v) All partners of the Joint Venture shall be liable jointly and severally for the execution of the contract in accordance

with the contract terms, and a statement to this effect shall be included in the authorization mentioned under (ii) above as well as in the Form of Bid and in the Form of Agreement (in the case of a successful bid);

(vi) In the event of any default by any partner/partners of Joint Venture, the other partner/partners shall accept the

liability and execute the contract in full; (vii) Responsibilities in respect of supply of the lead firm as well as each of the Joint Venture partners shall be clearly

indicated in the JV agreement; (viii) The Joint Venture agreement shall not be cancelled or amended unilaterally without consent of the Purchaser and a

statement to this effect should appear in the JV agreement; (ix) A copy of the JV agreement entered into by the Joint Venture partners and registered at ………… shall be

submitted with the bid; Alternatively a letter of intent to execute a JV agreement in the event of a successful bid shall be signed by all partners and submitted with the bid together with a copy of proposed agreement;

(x) The partner incharge should be responsible for supply of at least upto 40% of the total requirement. The other

partners shall be responsible for not less than 25% of the total requirement. In order for a Joint Venture or consortium to qualify, each of its partners must meet the criteria listed in Para 1 above in proportion to the quantity to be supplied by each partner for individual lot and the combination must meet the qualification in full as per Clause …….. [to be specified]. Failure to comply with this requirement will result in rejection of the joint venture’s bid.

(xi) Reports on the financial standing of each partner including profit and loss statements, balance sheets and auditor’s

reports for the past 5 years, and an estimated financial projection for the next two years shall be furnished alongwith the bid;

(xii) A firm can submit only one bid in the same bidding process, either individually as a bidder or as a partner of a Joint

Venture. A bidder who submits or participates in more than one bid will cause all the bids in which the bidder has participated to be disqualified.

(xiii) Bids from agents are not acceptable in the case of JV and such bids will be treated as non-responsive.

77 ICB Procedures

Sample 4

QUALIFICATION REQUIREMENTS (Computers)

1. (a) The bidder should be a manufacturer who must have designed, manufactured, tested and supplied the

equipment (s) similar to the type specified in the ‘schedule of requirements’ upto at least ........ % [indicate the percentage as considered appropriate – usually not less than 80% of the requirement] of the quantity required in any one of the last 3 years. The equipments offered for supply must be of the most recent series models incorporating the latest improvements in design. The models should have been released on or after ..... [indicate year of model as appropriate] and upto ………. [quantity] should be in satisfactory operation for ...... months as on date of bid opening. Further bidder should be in continuous business of manufacturing products similar to that specified in the schedule of requirements during the last three years prior to bid opening.

(b) Bids of bidders quoting as “Authorized Representative” of a computer manufacturer, meeting with the above

requirement in full, can also be considered provided : (i) the manufacturer furnishes a legally enforceable authorization in the prescribed format assuring full

guarantee and warranty obligations as per GCC and SCC for the goods offered; and

(ii) the bidder, as authorized representative, has supplied, installed and commissioned satisfactorily at least 80 % of the quantity similar to the type specified in the Schedule of Requirements in any one of the last three years which must be in satisfactory operation for at least 6 months on the date of bid opening and must be providing annual maintenance services for the above computer installations in about .......... centres in the country for over one year.

Note: Where bids are invited in multiple packages for same/similar items insert the following as Clause (d):

(c) To qualify for a package of contracts made up of this contract and other contracts for which bids

are invited in the IFB, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for individual lots of all such contracts.

Note: Where bids are invited in multiple packages for some/similar items insert the following as Clause (c):

(c) To qualify for a package of contracts made up of this contract and other contracts for which bids are invited in the IFB, the bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for individual lots of all such contracts.

2. The bidder should furnish the information on all past supplies and satisfactory performance for both (a) and (b)

above, in specified proforma . 3. All bids submitted shall also include the following information along with specified formats ‘A’ and ‘B’ (i) Copies of original documents defining the constitution or legal status, place of registration and principle

place of business of the company or firm or partnership, etc. (ii) The bidder should furnish a brief write-up, backed with adequate data, explaining his available capacity

and experience (both technical and commercial) for the manufacture and supply of the required systems and equipment within the specified time of completion after meeting all their current commitments.

(iii) The bidder should clearly confirm that all the facilities exist in his factory for inspection and testing and these will be made available to the Purchaser or his representative for inspection.

(iv) Details of Service Centres and information on service support facilities that would be provided after the warranty period [in the Service Support Form given in specified Form ].

(v) Reports on financial standing of the Bidder such as profit and loss statements, balance sheets and auditor’s report for the past three years, bankers certificates, etc.

NOTE : [THIS IS TO BE MODIFIED AS APPROPRIATE IN INDIVIDUAL CASES]

78 ICB Procedures

Sample 5

Qualification Requirement

[HIV Kits] 1. The documentary evidence of the Bidder’s qualifications to perform the Contract if its bid is accepted, shall establish

to the Purchaser’s satisfaction that the Bidder: [a] has been licensed by the regulatory authority in the country of manufacture to supply the HIV Kits,

covered by this IFB; [b] has manufactured and marketed at least …………. similar kits for the last five (5) years and the

specific HIV kits to the applicable standards upto ………..Nos. for at least two (2) years [in the last five (5) years]. (In support of this, data on past performance should be submitted as per Form 11 in Section VII);

[c] has received a satisfactory WHO-GMP or the applicable inspection certificate [for the factory where

the kits are manufactured and are being offered for supply], which should be valid on the date of bid opening, from the Regulatory Authority (RA) in the country of manufacture of goods and has demonstrated compliance with the quality standards during the past two years prior to Bid Submission. In case the WHO-GMP or equivalent applicable certificate’s validity is only upto the bid opening date, an undertaking shall also be submitted by the Bidder that they have applied for renewal of the certificate at the time of submitting the Bid.

[d] has the necessary capability to meet with standard and quality assurances for supplies as detailed in

paragraph 9 of Part B: General Technical Specifications; and [e] that, in the case of a Bidder offering to supply Goods under the contract which the Bidder did not

manufacture or otherwise produce, that the Bidder has been duly authorized by a manufacturer of the Goods that meets the above criteria in full to supply the Goods in the Purchaser’s country [as per Authorization Form 6 in Section VII].

Note: No bidder can be a primary manufacturer and also an authorized agent of another manufacturer for the same product.

2. The Bidder shall also submit the following additional information: [a] a copy of the manufacturing license and a statement of installed manufacturing capacity; [b] copies of reports on financial standing of the Bidder such as profit and loss statements, balance sheets

and auditor’s report for the past three years, bankers certificate, etc.; [c] details of on-site quality control laboratory facilities and services and range of tests conducted; [d] list of major supply contracts conducted within the last five years as per Form attached in the bidding

document; [f] a copy of the certificate of quality assurance (WHO-GMP or the applicable equivalent) for

manufacture of the required kits; [g] copies of original documents defining the constitution or legal status, place of registration and

principal place of business of the company or firm or partnership, etc. [h] the bidder should furnish a brief write-up, backed with adequate data, explaining his available

capacity and experience (both technical and commercial) for the manufacture and supply of the required kits within the specified time of completion after meeting all their current commitments.

79 ICB Procedures

Enclosure XIV/1

SAMPLE PRICE ADJUSTMENT FORMULA (WORKS) “A detailed model clause is given below for adoption: 70.3 Contract price shall be adjusted for increase or decrease in rates and price of labour, materials, fuels and

lubricants in accordance with the following principles and procedures as per formula given below. The amount certified in each payment certificate is adjusted by applying the respective price adjustment factor to the payment amounts due in each currency:

(a) Price adjustment shall apply only for work carried out within the stipulated time or extensions granted by

the Employer and shall not apply to work carried out beyond the stipulated time; price adjustment for extensions for reasons attributable to the Contractor, shall be paid in accordance with sub-clause 70.6;

(b) Price adjustment shall be calculated for the local and foreign components of the payment for work done as

per formulae given below; and (c) Following expressions and meanings are assigned to the value of the work done during each month: R = Total value of work done during the month. It would include the value of materials on which

secured advance has been granted, if any, during the month, less the value of materials in respect of which the secured advance has been recovered, if any, during the month. This will exclude cost of work on items for which rates were fixed under variations clause (51 and 52) for which the escalation will be regulated as mutually agreed at the time of fixation of rate.

RI = Portion of 'R' as payable in Indian Rupees Rf = Portion of 'R' as payable in foreign currency (at fixed exchange rates) R = RI + Rf To the extent that full compensation for any rise or fall costs to the contractor is not covered by the provisions of

this or other clauses in the contract, the unit rates and prices included in the contract shall be deemed to include amounts to cover the contingency of such other rise or fall in costs.

(i) Adjustment for Labour Component Price adjustment for increase or decrease in the cost due to labour shall be paid in accordance with the

following formula: VL = 0.85 x Pl/100 x RI x (Li - Lo)/Lo VL = increase or decrease in the cost of work during the month under consideration due to changes in

rates for local labour. Lo = the average consumer price index for industrial workers for ————— centre on the day 28 days

prior to the closing date of submission of bids as published by Labour Bureau, Ministry of Labour, Government of India.

Li = The average consumer price index for industrial workers for ————— centre on the day 28 days

prior to the last day of the period to which a particular interim payment certificate is related as published by Labour Bureau, Ministry of Labour, Government of India.

80 ICB Procedures

Pl = Percentage of labour component of the work. (ii) Adjustment for Cement Component Price adjustment for increase or decrease in the cost of cement procured by the contractor shall be paid in

accordance with the following formula. Vc = 0.85 x Pc/100 x RI x (Ci - Co)/Co Vc = Increase or decrease in the cost of work during the month under consideration due to changes in the

rates for cement Co = The all India average wholesale price index for cement on the day 28 days prior to the closing date

of submission of bids as published by the Ministry of Industrial Development, Government of India, New Delhi

Ci = The all India average wholesale price index for cement on the day 28 days prior to the last day of

the period to which a particular interim payment certificate is related, as published by Ministry of Industrial Development, Government of India, New Delhi

Pc = Percentages of cement component of the work (iii) Adjustment for steel component Price adjustment for increase or decrease in the cost of steel procured by the Contractor shall be paid in

accordance with the following formula: Vs = 0.85 x Ps/100 x RI x (Si - So)/So Vs = Increase or decrease in the cost of work during the month under consideration due to changes in the

rates for steel So = The all India average wholesale price index for steel (Bars and Rods) on the day 28 days prior to

the closing date of submission of bids as published by the Ministry of Industrial Development, Government of India, New Delhi

Si = The all India average wholesale price index for steel (Bars and Rods) on the day 28 days prior to

the last day of the period to which a particular interim payment certificate is related as published by Ministry of Industrial Development, New Delhi

Ps = Percentage of steel component of the work Note: For the application of this clause, index of Bars and Rods has been chosen to represent steel group.

81 ICB Procedures

(iv) Adjustment for Plant and Machinery and Spares component Price adjustment for increase or decrease in the cost of plant and machinery spares procured by the

Contractor shall be paid in accordance with the following formula: Vp = 0.85 x Pp/100 x RI x (Pi - Po)/Po Vp = Increase or decrease in the cost of work during the month under consideration due to changes in the

rates for plant and machinery spares Po = The all India average wholesale price index for heavy machinery and parts on the day 28 days prior

to the closing date of submission of bids as published by the Ministry of Industrial Development, Government of India, New Delhi

Pi = The all India average wholesale price index for heavy machinery and parts on the day 28 days prior

to the last day of the period to which a particular interim payment certificate is related as published by Ministry of Industrial Development, New Delhi

Pp = Percentage of plant and machinery spares component of the work Note: For the application of this clause, index of Heavy Machinery and Parts has been chosen to represent

the Plant and Machinery Spares group. (v) Adjustment for Bitumen Component Price adjustment for increase or decrease in the cost of bitumen shall be paid in accordance with the

following formula: Vb = 0.85 x Pb/100 x RI x (Bi - Bo)/Bo Vb = Increase or decrease in the cost of work during the month under consideration due to changes in the

rate for bitumen. Bo = The average official retail price of bitumen at the IOC depot at ——— on the day 28 days prior to

date of submission of bids. Bi = The average official retail price of bitumen at IOC depot at ———— on the day 28 days prior to

the last day of the period to which a particular interim payment certificate is related. Pb = Percentage of bitumen component of the work. (vi) Adjustment for Fuel and Lubricants Price adjustment for increase or decrease in cost POL (fuel and lubricant) shall be paid in accordance with the

following formula: Vf = 0.85 x Pf/100 x RI x (Fi - Fo)/Fo Vf = Increase or decrease in the cost of work during the month under consideration due to changes in

rates for fuel and lubricants. Fo = The average official retail price of High Speed Diesel (HSD) at the existing consumer pumps of

IOC at ———— on the day 28 days prior to date of submission of bids.

82 ICB Procedures

Fi = The average official retail price of HSD at the existing consumer pumps of IOC at ————— on

the day 28 days prior to the last day of the period to which a particular interim payment certificate is related

Pf = Percentage of fuel and lubricants component of the work. Note: For the application of this clause, the price of High Speed Diesel oil has been chosen to represent

fuel and lubricants group. (vii) Adjustment for Other Local Materials Price adjustment for increase or decrease in cost of local materials other than cement, steel, bitumen, plant

spares and POL procured by the contractor shall be paid in accordance with the following formula: Vm = 0.85 x Pm/100 x RI x (Mi - Mo)/Mo Vm = Increase or decrease in the cost of work during the month under consideration due to changes in

rates for local materials other than cement, steel, bitumen, plant spares and POL. Mo = The all India average wholesale price index (all commodities) on the day 28 days prior to date of

submission of bids, as published by the Ministry of Industrial Development, Government of India, New Delhi

Mi = The all India average wholesale price index (all commodities) on the day 28 days prior to the last

day of the period to which a particular interim payment certificate is related as published by Ministry of Industrial Development, Government of India, New Delhi

Pm = Percentage of local material component (other than cement, steel, bitumen, plant spares and POL)

of the work (viii) Adjustment for Foreign Currency Component (for each of the foreign currencies in which the contract

price is payable) (a) The foreign currency component of each payment which is convertible into foreign currency at

fixed exchange rate shall be adjusted according to the following formula: VFC = 0.85 x Rf x (Fei-Feo)/Feo VFC = increase or decrease in cost of work payable due to changes in cost of foreign input. Feo = the index applicable for the foreign input (plant, material, engineer's salary etc. as the

case may be) on the day 28 days prior to date of submission of bids as published in the country of origin.

Fei = corresponding index on the day 28 days prior to the last day of the period to which a

particular interim payment certificate is related (average index in case indices are published at lesser intervals).

(b) The bidder shall, in his tender, indicate the foreign input, (plant, material, engineer's salary etc.) and

appropriate index, the source of which shall be a Government or public organization. The bidder shall also attach specimens of the publications of the last 12 months for information of the Employer. If this

83 ICB Procedures

index is not acceptable to the Employer, then he will specify an alternative index and the source of publishing of the index.

(c) If the bidder has requested payment in more than one foreign currency, Rf shall be suitably broken

up and the formula applied separately to each currency component by taking into account the foreign input of the currency and corresponding indices (index and currency belonging to the same country).

(d) The currency of foreign exchange payment and the index shall belong to the same country. (ix) If the Contractor changes the country of origin of the source of supply of any input to the Works,

he shall immediately notify the Engineer who shall modify the price adjustment provisions subsequent to such change to reflect the relevant cost index from the actual country of origin of the input.

(x) If the currencies in which the Contract Price is expressed are different from the currencies of the sources of

the relevant indices, the Engineer shall determine the correction to be applied in calculating the Price Adjustment Factor [formula viii(a)] in order to avoid distortions in the amount of price adjustment. Such correction shall be applied to the increment of price fluctuation in the base costs of the respective inputs and shall correspond to the ratio of the exchange rates between the respective currencies on the date of the base indices and the date of the current indices as defined in sub-clause viii (a).

(xi) The following percentages will govern the price adjustment for the local currency portion (RI) of the

contract: 1. Labour - Pl _____ % 2. Cement - Pc _____ % 3. Steel - Ps _____ % 4. Plant and Machinery and Spares - PP _____ % 5. Bitumen - Pb _____ % 6. POL - Pf _____ % 7. Other materials - Pm _____ % Total 100%” (Where these percentages could substantially vary due to different construction methodology adopted, a range is to be indicated and bidder should be requested to indicate the percentages as in SBD. Alternatively, bidders may be requested to comment on this in prebid meeting and based on the comments/discussions, this could be adjusted). Sub-Clause 70.4: Sources of Indices The sources of indices for the foreign currency portion of the contract (RF) shall be those listed in the Appendix

to Tender, as approved by the Engineer. Indices shall be appropriate for their purpose and shall relate to the Contractor’s proposed source of supply of inputs on the basis of which his contract Price and expected foreign currency requirements shall have been computed. As the proposed basis for price adjustment, the Contractor shall have submitted with his bid the tabulation of Weightings and Source of Indices in the Appendix to Bid, which shall be subject to approval by the Engineer.

Sub-Clause 70.5: Base, Current and Provisional Indices The base cost indices or prices shall be those prevailing on the day 28 days prior to the closing date for

submission of bids. Current indices or prices shall be those prevailing on the day 28 days prior to the last day of the period to which a particular Interim Payment Certificate is related. If at any time the current indices are not available, provisional indices as determined by the Engineer will be used, subject to subsequent correction of the amounts paid to the Contractor when the current indices become available.

Sub-Clause 70.6: Adjustment after Completion

84 ICB Procedures

If the Contractor fails to complete the Works within the time for completion prescribed under Clause 43, adjustment of prices thereafter until the date of completion of the Works shall be made using either the indices or prices relating to the prescribed time for completion, or the current indices or prices, whichever is more favorable to the Employer, provided that if an extension of time is granted pursuant to Clause 44 the above provision shall apply only to adjustments made after the expiry of such extension of time.

Sub-Clause 70.7: Weightings The weightings for each of the factors of cost given above and in the Appendix to Tender shall be adjusted if, in

the opinion of the Engineer, they have been rendered unreasonable, unbalanced or inapplicable as a result of varied or additional work already executed or ordered under Clause 51 or for any other reason.

Sub-Clause 70.8: Subsequent Legislation If, after the date 28 days prior to the latest date for submission of tenders for the Contract there occur in the

country in which the Works are being or are to be executed changes to any National or State Statute, Ordinance, Decree or other Law or any regulation or by-law of any local or other duly constituted authority, or the introduction of any such State Statute, Ordinance, Decree, Law, regulation or by-law which causes additional or reduced cost to the Contractor, other than under the preceding Sub-Clauses of this Clause, in the execution of the Contract, such additional or reduced cost shall, after due consultation with the Employer and the Contractor, be determined by the Engineer and shall be added to or deducted from the Contract Price and the Engineer shall notify the Contractor accordingly, with a copy to the Employer. Notwithstanding the foregoing, such additional or reduced cost shall not be separately paid or credited if the same shall already have taken into account in the indexing of any inputs to the Price Adjustment Formulae in accordance with the provisions of Sub-Clauses (1) to (7) of this Clause.

(Note: Bidders may review the above percentages with reference to the planned construction method and program and may suggest necessary modifications with full justification in the pre-bid conference, to enable the employer to take those comments into account for modifying/re-fixing the percentages as appropriate. Note 1: Where it is felt that a single formula will not do, separate formula each for substantially different classes of work namely earthworks, structures, Bitumen surfacing, concrete pavement etc. can be prescribed in consultation with Bank.)

85 ICB Procedures

Enclosure XIV/2

SAMPLE PRICE ADJUSTMENT FORMULA (GOODS) Prices payable to the Supplier, as stated in the Contract, shall be subject to adjustment during performance of the Contract to reflect changes in the cost of labor and material components in accordance with the formula:

P = P0 (a + b L1 + c M1) – P0 ______________ _________________

L0 M0 in which:

P = adjustment amount payable to the Supplier. P0 = Contract Price (base price) a = fixed element representing profits and overheads included in the Contract Price and generally in the range of five (5) to fifteen (15) percent. b = estimated percentage of labor component in the Contract Price. c = estimated percentage of material component in the Contract Price. L0, L1 = labor indices applicable to the appropriate industry in the country of origin on the base date and date for adjustment, respectively. M0, M1 = material indices for the major raw material on the base date and date for adjustment, respectively, in the country of origin. The coefficients a, b, and c shall be specified by the Purchaser in the bidding documents. The sum of the three coefficients should be one (1) in every application of the formula. The Bidder shall indicate the source of the indices and the base date indices in its bid. Base date = thirty (30) days prior to the deadline for submission of the bids. Date of adjustment = ______ weeks prior to date of shipment (representing the mid point of the period of manufacture). The above price adjustment formula shall be invoked by either party subject to the following further conditions: (a) Price adjustment will be applied only if the resulting increase or decrease is more than _____ percent of the

Contract Price.

[Two (2) percent would be an acceptable percentage]

(b) No price adjustment shall be allowed beyond the original delivery dates unless specifically stated in the extension letter. As a rule, no price adjustment shall be allowed for periods of delay for which the Supplier is entirely responsible. The Purchaser will however be entitled to any decrease in the prices of the Goods and Services subject to adjustment.

(c) The total adjustment under this clause shall be subject to a ceiling of plus or minus _________ percent of the Contract Price.

[Ten (10) percent would be an acceptable percentage]

(d) If the currency in which the Contract Price P0 is expressed is different from the currency of origin of the labor and material indices, a correction factor will be applied to avoid incorrent adjustments of the Contract Price. The correction factor shall correspond to the ratio of exchange rates between the two currencies on the base date and the date for adjustment as defined above.

(e) No price adjustment shall be payable on the portion of the Contract Price paid to the Supplier as advance payment.

86 ICB Procedures

Enclosure XIV/3

Illustration on Correction to be Applied to Adjustment Amount (Goods) 1. Price Adjustment Formula P = P0 x {(a + b x (L1/L0) + c x (M1/M0)} – P0 Assume that the values of a, b and c are stated as under in S.C.C. a = 0.15 b = 0.25 a + b + c = 1 c = 0.60 P = P0 x {(a + b x (L1/L0) + c x (M1/M0)} – P0 (a + b + c) P = P0 x a + P0 x b x (L1/L0) + P0 x c x (M1/M0) – P0 x a – P0 x b – P0 x c P = P0 x b x (L1-L0) / L0 + P0 x c x (M1 – M0) / M0 (a, b, c, P, P0, L1, L0, M1, M0 are defined in sample Price adjustment formula for Goods – Enclosure XIV/2) 2. Where the country of origin of indices and currency are the same, the above should be applied as such for

calculating amount of adjustment. 3. Where the country of origin of the indices and currency are different, the correction factor to the adjustment

value will be applied as under: Assumption: Contract base price is stated in Rupees (PRe) and US Dollars (P$). Total Price = PRe + P$ Base Value - PRe0 / P$0 Rate of exchange on base date 1 US $ = Rs. 41.78 (assumed) Rate of exchange on date of adjustment 1 US $ = Rs. 45.00 (assumed) Increase for Labour Re. Portion : (L1 – L0) / L0 x 0.25 x PRe0 x 1 $ Portion : (L1 – L0) / L0 x 0.25 x P$0 x 41.78 / 45

87 ICB Procedures

Increase for Material Re. Portion : (M1 – M0) / M0 x 0.60 x PRe0 x 45.00 / 41.78 $ Portion : (M1 – M0) / M0 x 0.60 x P$0 x 1 Remarks (L1 and L0 are Indian indices; M1 and M0 are US indices) PRe - Base Price in Rupees ; P$ - Base Price in US Dollars

88 ICB Procedures

Enclosure XV

MINUTES OF BID OPENING - (ICB Goods/Works)

_________________________________________________ Project

Loan No./Credit No. : _______________________________

Basic Data Sheet 1.

Package Number

:

2.

Item/Work Description

:

3.

Estimated Value

:

4.

Date of issue of IFB

:

5.

Mode of Procurement

:

6.

(a) Deadline for submission of bids (date and time) (b) Bid opening date and time

: :

_________ at ___________ hours _________ at ___________ hours

7.

No. of Bidding Document sold

:

Domestic ________ Foreign _______ JV ________

8.

Number of bids received*

:

Gr. A : _____ Gr. B : _____ Gr. C : _____ Total : __________

9.

Bid Validity expires on

:

10.

Exchange rates on the day of bid opening as per SBI

:

The exchange rate of ________ (currency) on ________ (date) is Rs. __________

Signature of the bid opening officer : __________________ Name of the bid opening officer : __________________ Title of the bid opening officer : __________________ * (i) where industrial model preference (for supply and installation or turnkey contract) is used delete the

groups. (ii) in the case of civil works delete ‘Gr. C’

89 ICB Procedures

(Name of the Project)

RECORD OF BID OPENING (ICB)

Loan Number : ____________ Credit Number : ___________ Package Number : _________________ Description of Item/Work : ____________________________________________ 1. The following bids received by closing date and time, i.e., ________ hours on _________,

were publicly opened in the presence of the bidders’ representatives listed below at ________ hours on __________ (date).

S. No.

Name of Bidder

Group

Bid Security

Bid Amount * (CIP Destination/ CIF as quoted in Rupees and in Bid Currency)

Discount offered, if any* (modifica-tions or withdrawals)

Alternative offer, if any

Amount and Currency

Validity

1.

2.

3.

4.

5.

* Modify as appropriate for each case

90 ICB Procedures

2. The following representatives of bidders are present during the bid opening: S. No.

Name of Representative

Signature

Name of Bidder / J V Partners

* Name of Manufacturer if different from bidder

Complaints, if any : Signature, Name and Designation of the Bid Opening Officers : 1. _______________________________________________________________________ 2. _______________________________________________________________________ 3. _______________________________________________________________________ 4. _______________________________________________________________________ *Modify as required for each case.

91 ICB Procedures

Enclosure XVI

MODEL INSPECTION AND TEST CLAUSE Inspection and Tests (Clause 25) The following inspection procedures and tests are required by the Purchaser: After manufacture, the supplier shall get each equipment/item of Goods inspected in

manufacturer’s works and forward to the Purchaser alongwith his letter seeking inspection, a test certificate alongwith guarantee/warranty certificate confirming that the equipment/ Goods conform to contract specifications.

Upon receipt of the test certificate, the purchaser or its representative shall arrange for

inspection and/or test, of any or all the equipments/Goods prior to issuance of dispatch clearance. In cases where the supplies are received from abroad, the purchaser has the right to waive the pre-dispatch inspection.

However, the inspection and dispatch clearance by the Purchaser or the waiver thereof will

not prejudice the right of the Purchaser or its consignee to test the equipment/goods on receipt at destination. Upon receipt of the goods at final destination, the Purchaser shall have the right to inspect and/or test the equipment/Goods to confirm their conformity to the contract specifications.

If the equipment fails to meet the contract specifications during inspection, whether pre-

dispatch or upon receipt of at final destination, the supplier shall take immediate steps to remedy the deficiency or replace the defective equipment to ensure that all supplies meet with the specifications specified in the contract.

92 ICB Procedures

Enclosure XVII

Essential Elements of the Disputes Review Board (DRB) The following elements are essential to the success of a DRB: 1. All three members of the DRB are neutral and are selected as per agreed procedures. 2. All members serve both parties equally and fairly. 3. The fees and expenses of the DRB members are shared equally by the parties. 4. The DRB is organized when work begins, before there are any disputes. 5. The DRB keeps abreast of job developments by means of relevant documentation

and regular site visits. 6. Either party can refer a dispute to the DRB. 7. An informal but comprehensive hearing is convened promptly. (Presentation by

representatives of employer / contractor only. Normally, no legal presentation is permitted).

8. The written recommendations of the DRB are binding on either party unless one

party disagreed; and gives notice for going to arbitration; the recommendations are admissible as evidence, to the extent permitted by law, in case of later arbitration or litigation.

9. Altering or deleting any essential elements is a divergence which may place the

success of the DRB process at risk.

93 ICB Procedures

Summary of DRB Responsibilities The DRB has the following principal responsibilities: 1. Visit the site periodically. 2. Keep abreast of job activities and developments. 3. Encourage the resolution of disputes by the parties. When a dispute is referred to it, conduct a hearing, complete it’s deliberations, and prepare a recommendation in a professional and timely manner.

94 ICB Procedures

Key Steps in DRB 1. Prompt organization of DRB. 2. Regular DRB meetings and site visits. 3. Regular reporting to DRB. 4. Prompt referral of disputes to DRB. 5. Simple preparation for hearings. 6. Informal hearings (no legal presentation), with all parties given ample opportunity to

present and defend their positions. 7. Prompt issuance of written recommendations. (See model letter of appointment to Adjudicator in document P-3)

95 ICB Procedures

[Project Name] Recommendation of Dispute Review Board

Dispute No. XX [NAME OF DISPUTE]

Hearing Date: ______, 19xx Dispute Description of dispute. A one or two sentence summation of the dispute Contractor’s Position A short summation of the contractor’s position as understood by the board. Owner’s Position A short summation of the owner’s position as understood by the board. Recommendation The board’s specific recommendation for settlement of the dispute. (The recommended course is consistent with the explanation.) Explanation This section could also be called Considerations, Rationale Findings, Discussion, and so on The Board’s description of how each recommendation was reached.

Respectfully submitted, Date: ______________ ______________ Date: ______________ ______________ Date: ______________ ______________

96 ICB Procedures

Suggested Draft of the Letter of Appointment of Dispute Review Board members in Civil Works Contract

Tele: …………. Fax: …………… Grams: ………..

GOVERNMENT OF ……………………..

PUBLIC WORKS DEPARTMENT PROJECT IMPLEMENTATION UNIT

No.: …………………………………… Date: …………………….. To

1. Sri. ……………………... Chairman of the Dispute Review Board 2. Sri………………………. Member of the Dispute Review Board 3. Sri………………………. Member of the Dispute Review Board

Sir,

Sub: - Upgradation of road from ………………………………………. for contract package ……………

1. We hereby confirm your appointment for the Dispute Review Board for the above contract

to carry out the assignment specified in this Letter of Appointment. 2. For Administrative purposes Project Director, Project Implementation Unit,

………………….. has been assigned to administer the assignment to carry out the assignment on behalf of both the Employer and the Contractor. The services will be required during the period of contract for the work of …………………………………………

3. The conditions of services for functioning of the Board Members and the rules and procedures

to be followed by Dispute Review Board in resolution of Disputes are given in detail in the contract agreement vide Clause 67 of Conditions of Particular Application [COPA] read alongwith Annexure-A. You are requested to sign a declaration of acceptance in the format attached and return.

4. The appointment will become effective, upon confirmation of this letter by you and receipt of

declaration of acceptance. The appointment shall be liable for termination under a 30 (thirty) days written notice form the date of issue of the notice, if both Employer and the Contractor so desire. Also the appointment shall automatically stand terminated 14 days after the defects liability period is over as stated in the conditions of contract.

5. In partial modification of what is stated in Para 7 of Annexure A to COPA, payments for

your services shall be made as follows:

(a) Each Board Member will receive payments as follows:

97 ICB Procedures

(i) A retainer fee of Rs. …………../US$ …………… [as agreed to by the

Employer and Contractor in writing] per calendar month. This retainer fee shall be considered as payment in full for:

(a) Being available, on 7 days’ notice, for all hearings. Site Visits, and

other meetings of the Board: (b) Being conversant with all project developments and maintaining

relevant files;

(c) All office and overhead expenses such as secretarial services photocopying and office supplies (but not including telephone calls. faxes and telexes) incurred in connection with the duties as a Board Member.

(d) All services performed hereunder except those performed during the

days referred to in paragraph (ii) below. (ii) A daily fee of Rs. ………………/US$ …………….. [as agreed to by the

Employer and Contractor in writing] shall be payable in respect of the following days, and shall be considered as payment in full for:

(a) Each day up to a maximum of two days of travel time in each

direction for the journey between the Board Member’s home and the Site or other location of a Board meeting (including incidental expenses);

(b) Each day on Site or other locations of a Board meeting.

(iii) Expenses. In addition to the above, all reasonable and necessary travel

expenses (including less than first class air fare, subsistence, I AC class train fare and other direct travel expenses) as well as the cost of boarding and lodging, telephone calls, faxes and telexes incurred in connection with the duties as Board Member shall be reimbursed against invoices. Receipts for all expenses in excess of Rs. 500.00 [as agreed to by the Employer and Contractor in writing] shall be provided.

(iv) Reimbursement of any taxes that may be levied in India on payments made to

the Board Member (other than a national or permanent resident of the country of the Site) pursuant to this paragraph. [This will be limited to Consultancy Services tax and tax on fees for Technical Services provided by Foreign consultants only. All other taxes and duties are deemed covered in the daily fee].

(b) Escalation. The retainer and fees shall remain fixed for the period of each Board

Member’s term.

98 ICB Procedures

(c) Phasing out of monthly retainer fee. Beginning with the next month after the Taking

Over Certificate referred to in Clause 48 of GCC and COPA (or, if there are more than one, the one issued last) has been issued, the Board Members shall receive only one-third of the monthly retainer fee. Beginning with the next month after the Board has terminated its regular activities pursuant to paragraph 4 (a) above, the Board Members shall no longer receive any monthly retainer fee.

(d) Payments to the Board members shall be shared equally by the Employer and the

Contractor. The Employer [or the Contractor as may be mutually agreed to between the Employer and the Contractor] will make the admissible payment (both the Employer’s and the Contractor’s share) to the Members within 30 days of the receipt of the bill. The contractor’s share on this account (half the paid amount) will be recovered by the Employer from the Contractor’s bills against the work.

(e) Failure of either the Employer or the Contractor to make payment in accordance with

this Agreement shall constitute an event of default under the Contract, entitling the non-defaulting party to take the measures set forth, respectively, in Clause 63 or Clause 69.

(f) Notwithstanding such event of default, and without waiver of rights thereform, in the

event that either the Employer or the Contractor fails to make payment in accordance with these Rules and Procedures, the other party may pay whatever amount may be required to finance the operation of the Board. The party making such payments, in addition to all other rights arising from such default, shall be entitled to reimbursement of all sums paid in excess of one-half of the amount required to maintain operation of the Board, plus all costs of obtaining such sums.

6. In accepting this assignment, you should understand and agree that you are responsible for

any liabilities and costs arising out of risks associated with travel to and from the place of assignment. This includes (but is not limited to) risks such as accident (death and injury), illness, emergency repatriation, loss or damage to personal/professional effects and property. You are advised to effect personal insurance cover in respect of such risks, if you do not already have such cover in place. In this regard, you shall maintain appropriate medical, travel, accident and third-party liability insurance. The obligation under this paragraph will survive till termination of this appointment.

7. You will carry out the assignment in accordance with the highest standard of professional

and ethical competence and integrity, having due regard to the nature and purpose of the assignment, and will conduct yourself in a manner consistent herewith. The format for submission of recommendations is given in Annexure.

8. You agree that all knowledge and information not within the public domain, which may be

acquired while carrying out this service shall be, for all time and for all purpose, regarded as strictly confidential and held in confidence, and shall not be directly or indirectly disclosed to any party whatsoever, except with the permission of the employer and the contractor.

99 ICB Procedures

9. You agree that any manufacturing or construction firm with which you are associated with, will not be eligible to participate in bidding for any goods or works resulting from or associated with the project of which this consulting assignments forms a part.

10. Kindly sign two copies of this letter as well as the declaration of acceptance (in format attached) and return one copy each of both to Employer and to the Contractor. Read and Agreed Name of the Member of Dispute Review Board Signature Place : Date : Name of Employer Signature of authorized representative of Employer Name of Contractor Signature of authorized representative of Contractor

100 ICB Procedures

[Project Name] Recommendation of Dispute Review Board

Dispute No. …………… (NAME OF DISPUTE) Hearing Date………,20….. Dispute Description of dispute. A one or two sentence summation of the dispute Contractor’s Position A Short summation of the contractor’s position as understood by the board. Owner’s Position A Short summation of the contractor’s position as understood by the board. Recommendation The board’s specific recommendation for settlement of the dispute. (The recommended course is consistent with the explanation.) Explanation This section could also be called Considerations, Rationale Findings, Discussion, and so on The Board’s description of how each recommendation was reached. Respectfully submitted, Date: Date: Date:

101 ICB Procedures

“BOARD MEMBER’S DECLARATION OF ACCEPTANCE” WHEREAS (i) a Construction Contract (the Contract for the …………………….project [fill in the name of

project] has been signed on ………………….[fill in date] between …………………[name of Employer] (the Employer) and …………………..[name of contractor] (the Contractor).;

(ii) Clause 67 of the Conditions of Particular Application of the Construction Contract provides

for the establishment and operation of a Disputes Review Board (the Board); (iii) the undersigned has been selected (and where required, approved) to serve as a Board Member

on the said Board; NOW THEREFORE, the undersigned Board Member hereby declares as follows: 1. I accept the selection a Board member and agree to serve on the Board and to be bound by

the provisions of Clause 67 of the Conditions of Particular Application of the Contract and the Disputes Review Board’s Rules and Procedures attached as Annexure A to the Conditions of particular application.

2. With respect to paragraph 1 of said Dispute Review Board’s Rules and Regulations, I declare (a) that I have no financial interest of the kind referred to in subparagraph (a); (b) that I have had no previous employment nor financial ties of the kind referred to in

subparagraph (b); and (c) that I have made to both parties any disclosures that may be required by sub-

paragraphs (b) and (c). BOARD MEMBER ___________________________________________ ____________________[Insert name of Board Member] Date: ___________________________________________

102 ICB Procedures

FORMAT FOR MINUTES OF PREBID CONFERENCE

Minutes of Pre-bid conference held on …………….[date] Description of Goods/Name of the Work : ………………………. Tender/Bid No. ICB/NCB : ………………………. Names of those Present: From Employer/Purchaser 1. 2. 3. From Prospective Bidders 1. 2. 3. Opening Remarks [Brief of the introductory remarks made by Employer/Purchaser] Table 1. [All queries relating to same clause should be clubbed] Sl. No. Clause No. of

ITB/GCC/SCC/ Forms

Gist of the Query

Response Reference to Sl. No. of Addendum [Table 2] wherever applicable

Remarks

103 ICB Procedures

Table 2. Draft Addendum Sl. No. Clause No.

ITB/GCC/ SCC/Forms

As existing As amended Reference to Sl. No. of Response [Table 1] wherever applicable

Remarks

NR/ls Thursday, December 15, 2005 m:\pdat\sbd\procedure\p2-icb\p-2.doc