Tele :- Fax :- Email:-WNCNDINCOD-NAVY@NIC.IN

FIS DOC : 2200048258User Name : 87632N

Reply should be addressed toThe Admiral Superintendent of Dockyard

DYT/DAG/15-16/106A/PL/ABHAY MAIN ENGINE/241

NAVAL DOCKYARD(MUMBAI)SHAHID BHAGAT SINGH ROADMUMBAI-400001

05 Jul 2016

YEOMAN MARINE SERVICES"UNIT NO.29,30,31,T.J. ROAD"MUMBAI - 400015

RFP FOR REMOVAL AND INSTALLATION OF MAIN ENGINE (MTU 16V1163 TB 93) AND GEAR BOX # INS ABHAY

INSTRUCTION TO BIDDERS

1. Quotation in sealed cover are invited for REMOVAL AND INSTALLATION OF MAINENGINE (MTU 16V 1163 TB 93) AND GEAR BOX # INS ABHAY of ND(MB) as per thework package listed in enclosed Schedule of Requirement (SOR).

2. General Information about the tender:-

(a) Tender reference No. DYT/DAG/15-16/106A/PL/ABHAY MAIN ENGINE/241.

(b) Last date and time for receipt of tenders 01 Aug 2016/1425 Hrs.

(c) Time and date for opening of tenders 01 Aug 2016/1430 Hrs.

(d) Place of opening of tenders TENDER OPEN ROOM ND (MB)

(e) Pre-Bid Conference on 25 Jul 2016 at JMDAG OFFICE NAVAL DOCKYARD MUMBAI

(f) Address for Communication :

Clarification on Commercial matters/Terms of ContractJMDAG,NAVAL DOCKYARD MUMBAI

3. The tender shall be submitted in single stage two - bid system, theTechnical and Commercial bids. The following enclosures are forwarded alongwith the enquiry to assist you in preparing your technical and commercialoffer:-

(a) Index of Tender Document - Enclosure I

(b) Schedule of Requirement - Enclosure II

(c) Standard Conditions of Contract - Enclosure - III

(d) Guidelines for Preparation of Technical Bid - Enclosure - IV

(e) Guidelines for Preparation of Commercial Bid - Enclosure - V

(f) Mode of Quotation - Enclosure - VI

(g) EMD Format - Enclosure - VII

(h) Quality Assurance Plan -Enclosure - VIII

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4. Quotation shall remain valid up to 180 days from the date of opening ofTechnical Bid.

Submission/Opening of Tenders

5. PLEASE QUOTE OUR RFP NO AND DATE OF TENDER OPENING ON SEALED COVER.FAILURE TO DO SO WILL RENDER YOUR OFFER INVALID.

6. The Technical and Commercial bids are to be submitted in two separatesealed envelopes, duly marked as "Technical Bid for RFP No.DYT/DAG/15-16/106A/PL/ABHAY MAIN ENGINE/241 Dated 05 Jul 16and "CommercialBid for RFP No. DYT/DAG/15-16/106A/PL/ABHAY MAIN ENGINE/241Dated 05 Jul 16".The quotes are to be super-scribed with your firm's name, address, andofficial seal and ink signed by an authorized representative of the Tenderer.Sealed Bids addressed toThe Admiral Superintendent of Dockyard,NAVALDOCKYARD(MUMBAI) ,SHAHID BHAGAT SINGH ROAD ,MUMBAI--400001 should be droppedin tender box marked as "TENDER BOX NO: INCOD LOCATED AT TIGER GATE" locatedatTIGER GATE NAVAL DOCKYARD MUMBAI, or to be sent by registered post so as toreach this office by due date and time (to be specified in the RFP). Noresponsibility will be taken for postal delay or non-delivery/non-receipt oftender documents.

7. Sealed quotations (only Technical Bid in case of Two Bid System) will beopened by a committee on due date and time. Your authorized representativefrom the Company can attend the Bids opening. If due to any exigency, the duedate for opening of Bids is declared as closed holiday, in such cases, theBids will be opened on next working day at the same time or any otherday/time as intimated by the customer. The date of opening of Commercial Bidwill be intimated after acceptance of technical Bids. Commercial Bids of onlythose firms will be opened, whose Technical Bids are found compliant/suitableafter Technical evaluation is done by the Buyer.

8. Tenders sent by FAX/E-Mail. Tenders found in sealed box marked INCODLOCATED AT TIGER GATE at TIGER GATE NAVAL DOCKYARD MUMBAI will only beconsidered. To avoid any complication with regard to Late Receipt/Non-receiptof Tenders, it may please be noted that responsibility rests with thetenderer to ensure that tenders reach this office before due date. LateQuotes will be rejected outright. Tenders sent by FAX/E-Mail will not beconsidered. Further, Tenderers dropped in the wrong box will be renderedinvalid.

9. In case your firm is not willing to quote due to any reasons, your regretshould be sent well before the due date, failing which your firm can bede-listed from the Contractor's list.

10. Commercial offers will be opened only of those firms, whose TechnicalOffers have been found suitable after technical evaluation. FurtherCommercial negotiations will be made only with the lowest bidder (L1) asdetermined by the committee. The date, time and venue fixed for this purposewill be intimated separately.

11. Payment of Cost of Tender (LTE/OTE/STE/PSE). "NA"

12.(a) Earnest Money Deposit. The bidders are to furnish EMD for a sum of Rs.100000 (One Lakh Rupees Only), in the name of PCDA(NAVY),MUMBAI with avalidity of 45 days beyond the final bid validity period, in the form of anAccount Payee Demand Draft or Banker#s Cheque (including IDBI Bank) or Bank

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Guarantee as per Form DPM-13 (Enclosure VII to RFP) from any of the publicsector banks or a private sector bank authorized to conduct governmentbusiness viz. Axis / ICICI / HDFC Banks only, will be acceptable. EMDs fromany other bank (including Co-op & Scheduled Banks) will not be accepted andbids will be liable for disqualification. EMD is not required to be submittedby those Bidders who are registered with ND(MB) (MUMBAI)/NSIC/CentralPurchase Organizations for the same item/range of products/goods or services.These firms must however submit a valid registration certificate with the #T#bid, failing which their offers will be rejected.

(b) PBG. Bidders may note that the submission of PBG by L1 firm irrespectiveof their registration with any organization viz MOD/NSIC is compulsory.Standing PBG @5%/10% of the contract value valid up to 60 days afterwarranty period is to be submitted in the form of Bank Guarantee through apublic sector bank or ICICI / HDFC / AXIS Bank within 30 days of issue ofWork Order covering letter and prior to collecting to Work Order ink signedcopy.

Evaluation Criteria

13. (a) Loading of Cost for Items " Not Quoted " The bidder is to quote for allthe sections/sub-sections mentioned in the SOW/SOR as per the Mode ofQuotation placed at Annexure 2 to Encl II to RFP. Any omissions / deviationsto the SOW/SOR/ Mode of Quotation are to be recorded in the Record ofDeviations and submitted along with the 'T' Bid. In case a bidder fails toquote for the a certain items / Defect List Serial. Their bid will be loadedby the amount quoted by the highest bidder for that particular Item/ DefectList serial and this loading will be considered for determining the L1.CUSTOMER reserves the right to determine the qualification of a firm on thisaccount.

(b) If there is a discrepancy in unit price and total price the unit priceshall prevail. If there is a discrepancy between words and figures, theamount in words shall prevail. If supplier does not accept the correction ofthe errors, this bid will be rejected and the bid security may be forfeited.

Finalising of L1 Firm

14. The evaluation and comparison of responsive bids and finalisation of L-1Firm shall he done on the prices of the goods offered and other charges suchas Packing & Forwarding, Freight and Insurance, AMC, etc, as indicated in theprice schedule of the Bid Document but excluding levies, taxes and dutiessuch as excise duty, VAT, Service tax, Octroi/entry tax, etc on finalproduct, which are to be paid extra as per actuals, wherever applicable.

15. Payment Terms. The Payment Terms for the Contract Price shall be asfollows.

Suggested stages of completion and terms of payment: - 60% Payment oncompletion of removal and installation.Final 40% on successful completion ofHATs/SATs.

Standard Conditions of Contract (SCOC)

16. (a) Firm shall be required to accept the SCOC. A Contract will be signedbetween the Contract Operating Authority, INTEGRATED COMMERCIALDEPARTMENT(GM) (INCOD), ND(MB), MUMBAI and the shipyard/firm incorporatingthe SCOC at Enclosure III of this RFP, which will form an integral part ofthe Contract.

(b) The firms requested to furnish complete details in T-bid sought inEnclosure IV of RFP, if the same is not indicated the bid will be

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disqualified.

Special Conditions of RFP

17. The special condition of RFP has been enumerated at Sl3 (n) and 3(z) ofAnnexure1 to Encl 2 of this RFP. Bidders are to ensure that they submitrelevant documents, with 'T'- Bid, to confirm eligibility with regard to thespecial conditions.

OR

Special Conditions of RFP for rate contract

17. The Bidder is required to give confirmation of their acceptance of SpecialConditions of the RFP mentioned below which will automatically be consideredas part of the Contract concluded with the successful Bidder (i.e. Seller inthe Contract) as selected by the Buyer. Failure to do so may result inrejection of Bid submitted by the Bidder:-

(a) In the Schedule of Requirement only the anticipated drawal is mentionedwithout any commitment.

(b) The purchaser reserves the right to conclude more than one rate contractfor the same item.

(c) The purchaser as well as the supplier may withdraw the rate contract byserving suitable notice to each other. The prescribed notice period isgenerally thirty days.

(d) The purchaser has the option to renegotiate the price with the ratecontract holders.

(e) In case of emergency, the purchaser may purchase the same item through adhoc contract with a new supplier.

(f) Supply orders, incorporating definite quantity of goods to be suppliedalong with all other required conditions following the rate contract terms,will be issued for obtaining services through the rate contract.

(g) The purchaser and the authorized users of the rate contract are entitledto place work orders upto the last day of the validity of the rate contractand, though services against such work orders will be effected beyond thevalidity period of the rate contract, all such services will be guided by theterms and conditions of the rate contract.

(h) The rate contract will be guided by #Fall Clause# (Para 8.7.2 of DPM 09refers)

OR

Special condition of RFP for AMC

Special Condition of RFP

17. The following AMC clause will form part of the contract placed onsuccessful Bidder :

(a) The Seller would provide comprehensive AMC for a period of 02 years. TheAMC services should cover the repair and maintenance of all the equipment andsystems purchased under the present Contract. The Buyer Furnished Equipmentwhich is not covered under the purview of the AMC should be separately listedby the Seller. The AMC services would be provided in two distinct ways:

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(i) Preventive Maintenance Service: The Seller will provide a minimum offour Preventive Maintenance Service visits during a year to the operatingbase to carry out functional check ups and minor adjustments/ tuning as maybe required.

(ii) Breakdown maintenance Service: In case of any breakdown of theequipment/system, on receiving a call from the Buyer, the Seller is toprovide maintenance service to make the equipment/system serviceable.

(b) Response time: The response time of the Seller should not exceed 24 hoursfrom the time the breakdown intimation is provided by the Buyer.

(c) Serviceability of 100 % per year is to be ensured. This amounts to totalmaximum downtime of Nil days per year. Also unserviceability should notexceed 07 days at one time. Required spares to attain this serviceability maybe stored at site by the Seller at his own cost. Total down time would becalculated at the end of the year. If downtime exceeds permitted downtime, LDwould be applicable for the delayed period.

(d) Maximum repair turnaround time for equipment/system would be 07 days.However, the spares should be maintained in a serviceable condition to avoidcomplete breakdown of the equipment/system.

(e) Technical Documentation: All necessary changes in the documentation(Technical and Operators manual) for changes carried out on hardware andsoftware of the equipment will be provided.

(f) During the AMC period, the Seller shall carry out all necessaryservicing/repairs to the equipment/system under AMC at the current locationof the equipment/system. Prior permission of the Buyer would be required incase certain components/sub systems are to be shifted out of location. Onsuch occasions, before taking over the goods or components, the Seller willgive suitable bank guarantee to the Buyer to cover the estimated currentvalue of item being taken.

(g) The Buyer reserves its right to terminate the maintenance contract at anytime without assigning any reason after giving a notice of 03 months. TheSeller will not be entitled to claim any compensation against suchtermination. However, while terminating the contract, if any payment is dueto the Seller for maintenance services already performed in terms of thecontract, the same would be paid to it as per the contract terms.

OR

Special condition of RFP for Conservancy

Special Conditions of RFP

17. The Bidder is required to give confirmation of their acceptance of SpecialConditions of the RFP mentioned below which will automatically be consideredas part of the Contract concluded with the successful Bidder (i.e. Seller inthe Contract) as selected by the Buyer. Failure to do so may result inrejection of Bid submitted by the Bidder:-

(a) It shall be the liability of the agency to pay applicable Minimum wagesfixed by The Govt of India/ Govt of MUMBAI (Whichever is higher) and allallied taxes/contribution i.e service tax, PF, ESIC etc. This may be verifiedby the user manager from time to time.

(b) The Payment of the employees will be made in presence of the user manager/ representative who would ensure the correctness of the payment made to theemployees.

(c) The bidder has to submit a certified copy of the wage register along with

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the bills for processing payment.

(d) The firm shall be responsible for any litigation arising out of employment/ payment to the employees and issues related to the labour welfare includingprovident fund, insurance, CLA and such other issues.

(e) Penalty Clause. Penalty will be imposed on following accounts:-

(i) In case of 10% of the daily/weekly/monthly work is not carried out asum of Rs. 500.00 per instance will be deducted from the quarterly bill aspenalty and if the firm fails to carry out 20% to 50% of daily/weekly/monthlywork a sum of Rs. 1000. 00 per instance will be deducted from the quarterlybill as penalty and in case of firm fails to carry out more than 51% ofdaily/weekly/monthly work a sum of Rs. 3000. 00 per instance will be deductedfrom the quarterly bill as penalty.

(ii) Unsatisfactory Turn Out. In case of unsatisfactory turn out by theconservancy staff employed by the contractor a sum of Rs. 100.00 per head perday will be deducted from the monthly bill as penalty.

(iii) Disciplinary Grounds. (Rude behavior, Drinking, Fighting, Not foundat the place of duty, Disobedience and Sleeping on Duty etc) Suitable penaltyas deemed fit by user manager, the minimum penalty being Rs. 500.00, will beimposed on the contractor.

(iv) Unsatisfactory Performance. A Penalty of 1% of total contract valueduly rounded off to the next higher Rs. 10.00 will be imposed in case ofunsatisfactory performance by the contractor or failure to improve upon thestandard of performance despite issuing of warning letter. Further, theContract Agreement shall be terminated by serving a notice to the Contractorin the prescribed manner and conducting such inquiry, if at all as may beconsidered necessary by the THE ADMIRAL SUPERINTENDENT(COMM),ND(MB), MUMBAI.

Pre-Bid Conference

18. The SOR (Enclosure II) and SCOC (Enclosure III) should be carefullyconsidered while preparing the bids. All clarifications are to be resolved inthe Pre-Bid Conference on 25 Jul 2016 at JMDAG OFFICE NAVAL DOCKYARD MUMBAIat Tel No. 022-22751478 22-22751479 prior submission of bids. Attendance atpre-bid meeting is mandatory. Bids of prospective bidders not attending thepre-bid meeting are liable for disqualification. No revision of CommercialBid would normally be permitted after opening of the Technical Bid. (Note: The detail of personnel attending the pre-bid meeting is to beintimated to the User Manager at least one day prior to the pre-bid meeting.)

Commercial Bid

19. (a) The Commercial bid is to be submitted strictly in accordance withEnclosure -V to this tender enquiry. The Bidder, while preparing Q-bid, is tostrictly adhere to Mode of Quotation (MOQ) format indicated at Annexure 2 toEncl - II to RFP. No deviation from the MOQ format is expected. The Bidderis to avoid making any changes to the MOQ format and in case of anydiscrepancy, seek clarification during the pre-bid meeting.

(b) A soft copy of Quote/MoQ in excel format on a CD is to be submitted insealed manner along with the 'Q' Bid. Non adherence to this may render thebid invalid.

(c) The Commercial bid once opened, will not be subjected to unilateralrevision by the firm, unless the firm is called for price negotiationsspecifically and asked to justify the rates. (Total Nos of pages in the Q-bidare to be mentioned on the first page of the Q-bid. Further each page to benumbered. For example if there are 20 pages in Q bid, first page to benumbered as 1/20 and last page to be numbered as 20/20.)

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(d) Foreign Exchange Content. Foreign Exchange content, if any, is to beclearly specified along with the specific items on which customs duty wouldbe applicable clearly indicating the rates of customs duty applicable. In theabsence of complete unambiguous details, following actions will be taken:-

(i) Loading custom duty at the rate of 25% on entire material cost, when#Foreign Exchange# content is not specified in the Q bid.

(ii) Loading custom duty at the rate of 25% when applicable rate of customsduty is not specified in Q bid.

(iii) Further, customs duty exemption certificate will be issued only if theabove mentioned particulars are provided unambiguously.

(e) Exemption Certificates. All bidders are to specify the list of items forwhich Customs/ Excise/ Octroi exemption certificates are sought. The list isto be forwarded alongwith the T bid for evaluation by the TEC. Exemptioncertificates if sought by the firms will be issued only for the list of itemsspecified in the T Bid of the firm in the following format:-

For Issue of Customs Duty ExemptionS.No. Description Q.Bid Ref. Sl. No Part No. QTYFor Issue of Octroi Duty ExemptionS.No. Description Q.Bid Ref. Sl. No Part No. QTY

20. Registration with the Yard(a) Following documents are required to be submitted by vendors notregistered with ND(MB),MUMBAI along with the Technical Bid, which will bereferred to as part of the evaluation process:-(i) State Sales Tax Certificate(ii) Central Sales Tax Certificate(iii) Incorporation Certificate/Shop & Establishment Certificate(iv) Bank Solvency Certificate (Taken within last one year)(v) Valid Financial rating Certificate from M/s CRISIL/SMERA/D&B or anyorganization of similar repute(vi) Partnership deed, if any.(vii) Purchase Order Copies (Latest)(viii) Copy of last three years Balance Sheet attested by C. A.#

(b) The L1 bidder will have to obtain a temporary Registration from QualityAssurance (QA) Department of ND(MB),MUMBAI if not already registered for thesame item/range of products/goods or services. Work order will be placed onthe L1 bidder only after confirmation from QA Dept that registrationformalities are in order.

21. Service Tax. Government of India, Ministry of Finance (Department ofRevenue) Notification No. 12/2012 - 'Service Tax', dated 17 March 2012exempts 'Service Tax' for repair of ships or boats or vessels belonging tothe Government of India. Therefore, the firms are requested not to quote forservice tax.

22. Security. Workforce/personnel of the contractor will be permitted entryinto ND(MB),MUMBAI only on production of Police Verification Certificate andaddress proof and Navy Staff not be liable for any delay whatsoever caused inexecution of contract, due to non - production of Police VerificationCertificate of labourers/Workers.

Conditions under which this RFP is issued.

23. This RFP is being issued with no financial commitment and Customer

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reserves the right to change or vary any part thereof at any stage. TheCustomer reserves the right to reject any or all of the offers withoutassigning any reason whatsoever. The Customer also reserves the right towithdraw the RFP should it be so necessary at any stage. Successful bidderswill have to be registered with ND(MB) ,MUMBAI prior to opening of Q bids /finalization of order.

24. Please acknowledge receipt.

Thanking you, Yours faithfully

(PRADEEP BISWAS)COMMANDERSMCOM

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Enclosure I of RFP

Index of Tender Document

1 Enclosure I of RFP2 Enclosure II of RFP

Annexure 1: Particulars of Vessel/Asset on which work is required to becarried out

Annexure 2: Quantified Work Package

Annexure 3: Quality Inspection Schedules/QAP

3 Enclosure III of RFPARTICLE 1: DEFINITION AND ABBREVIATION

ARTICLE 2: EFFECTIVE DATE AND OPERATION OF CONTRACT

ARTICLE 3: SCOPE OF CONTRACT

ARTICLE 4: CONTRACT PRICE AND TERMS OF PAYMENT

ARTICLE 5 : TAXES AND DUTIES

ARTICLE 6: ADVANCE BANK GUARANTEE

ARTICLE 7: PERFORMANCE BOND

ARTICLE 8: DURATION AND DELIVERY

ARTICLE 9: LIQUIDATED DAMAGES

ARTICLE 10: RISK AND EXPENSE CLAUSE

ARTICLE 11: QUALITY AND INSPECTION

ARTICLE 12: WARRANTY & WARRANTY BOND

ARTICLE 13: GENERAL TERMS AND CONDITIONS

ARTICLE 14: INDEMNITY & INSURANCE

ARTICLE 15: SECURITY

ARTICLE 16: FORCE MAJEURE

ARTICLE 17: TERMINATION OF CONTRACT

ARTICLE 18: LAW

ARTICLE 19: ARBITRATION

ARTICLE 20: PENALTY FOR USE OF UNDUE INFLUENCE

ARTICLE 21: AGENTS/AGENCY COMMISSION

ARTICLE 22: ACCESS TO BOOKS OF ACCOUNT

ARTICLE 23: NON DISCLOSURE OF CONTRACT DOCUMENTS

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ARTICLE 24: NOTICES

ARTICLE 25: AMENDMENTS

ARTICLE 26: FREE SERVICES BY NAVY

ARTICLE 27: NOTICES & COMMUNICATIONS

ARTICLE 28: INTERPRETATION

ARTICLE 29: ENVIRONMENTAL POLICY

ARTICLE 30: LABOUR REGULATIONS

ARTICLE 31: REMOVAL OF METAL SCRAP & DEBRIS

ARTICLE 32: SIGNATURE AND WITNESSING BY PARTIES

ANNEX 1: FORMAT OF CERTIFICATE OF ACCEPTANCE

ANNEX 2: SCOPE OF WORK (DEFECT LIST WITH ITEMISED COST)

ANNEX 3: FORMAT OF PROMULGATING CHANGE IN SCOPE OF WORK

ANNEX 4: BREAKDOWN OF CONTRACT PRICE

ANNEX 5: FORMAT OF WORK COMPLETION CERTIFICATE

ANNEX 6: FORMAT FOR COMPLETION OF HANDING OVERALL DATA BY CONTRACTORRELATED TO WORK

4 Enclosure IV of RFP : GUIDELINES FOR PREPARATION OF TECHNICAL BID

5 Enclosure V of RFP : GUIDELINES FOR PREPARATION OF COMMERCIAL BID

6 Enclosure VI of RFP : SUMMARY SHEET FOR COSTING / QUOTATION

7 Enclosure VII of RFP : EMD Bank Guarantee format

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Enclosure II of RFP

SCHEDULE OF REQUIREMENTS (SOR)

(Note: The Schedule of Requirements is a technical document and specific tothe Project/Service and is part of the RFP)

Annexure 1 - Particulars of Vessel/Asset on which work is required to becarried out.

Annexure 2 - Quantified Work Package (comprehensive scope of work thatcontains break-up of individual jobs to be completed including survey,dismantling and inspection, routines and repair to be carried out, consequentrepair, trials and comprehensive list of services required such as drydocking, berthing, jetty services (electricity, accommodation, phone, freshwater, fire main), cranes facilities, tugs and pilot charges.

Annexure 3 - Quality Inspection Schedules/QAP (minimum and essentialparameters that are required to be achieved for the scope of work to bedeemed as satisfactorily completed)

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Annexure 1 to Encl - II

RFP DYT/DAG/15-16/106A/PL/ABHAY MAIN ENGINE/241

Dated :05 Jul 16

SCHEDULE OF REQUIREMENTS (SOR)

REMOVAL AND INSTALLATION OF MAIN ENGINE (MTU 16V 1163 TB 93) AND GEAR BOX #INS ABHAY

SI Description Remarks of Indenter1 Department initiating the SOC ND(MB) / 41848F2 Name of the item(s)/services

being procuredREMOVAL AND INSTALLATION OF MAINENGINE (MTU 16V 1163 TB 93) AND GEARBOX # INS ABHAY

3 Summary of case for procurement:-

(a) Name of ship/equipment: INS Abhay/Main Engine and Gear Box

(b) Broad purpose of items/services being procured:- The case on file is pertaining with removal and installation ofMain Engine and Gear Box of INS Abhay. During the Medium Refit of theship, Long life Paint scheme (LLPS) will be undertaken in all machinerycompartment of the ship and hence entails removal of completepropulsion plant which includes removal of Main Engine, gear box andvulcan coupling. Post application of LLPS all these machineries willbe re-install in the engine room. Entire job involve removal andrefitment of equipment and due to capacity constraints at ND (Mbi)the case is considered for offloading.

(c) Location where work is to be undertaken:- INS Abhay

(d) Type of Work:- Removal/Refitment

(e) Start Date of Work: On placement of Order/Clearance by theUser Manager whichever is later

(f) Estimated Duration of Work: Five months from placement of order/clearance by user manager.

(g) Earnest Money Deposit: Rs. 1,00,000/-

(h) Test Specification: As per SOW attached and OEM manual

(j) Technical Acceptance Criteria: Parameters conforming to thosespecified in OEM Manual

(k) Acceptance Agency: WCC by SMDAG and I-Note by SMQC(E)

(l) Inspection stages: As per QAP

(m) Ability to give support at country wide locations (required/notrequired). If required locations to be indicated:- Yes, required at Mumbai.

(n) Past experience in undertaking (required/not required)- Similar jobs in marine field:- Similar jobs:- 1. Avarage annual financial turnover during the last 03 years, ending

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31st March of the previous financial year, should be at leastRs. 10,29,662.00 (30% of the estimated cost)2. Experience of having successfully completed similar works during thelast 07 yrs ending last day of the month previous to the one in whichapplications are invited should be either of the following:(i) Three similar completed works costing not less the amount equal toRs. 13,72,883.00 (40% of the estimated cost)(ii) Two similar completed works costing not less the amount equal toRs. 17,16,104.00 (50% of the estimated cost)(iii) Two similar completed works costing not less the amount equal toRs. 27,45,766.00 (80% of the estimated cost)

(p) Details of Dockyard facilities that will be made available to theContractor (such as crane, electricity, compressed air, crane, stagingetc:

Note for user department:-

(1)Details of services that will be provided need to be elaborated:

(2) Necessary confirmation from the concerned department providing theservice that the same will be made `available needs to be placed onfile:- Crane facilities, water and electricity will be made available bythe Yard for the works carried out at ND(MB)

(q) Suggested stages of completion and terms of payment:- 60% Payment on completion of removal and installation.Final 40% on successful completion of HATs/SATs.

(r)List of Specifications/drawings, as applicable (Specifications anddrawings to be attached if applicable:- As per OEM documentation.

(s) Technical details with technical parameters (Scope of Work(SOW) tobe attached): As per SOW.

(t)Requirement of training/on-job training: No

(u)Requirement of installation/commissioning: Yes

(v) Requirement of Factory Acceptance Trials (FAT), Harbor AcceptanceTrails (HAT) and Sea Acceptance Trials (SAT):- Yes for HATs and SATs only.

(w) List of Technical documentation to be provided by the vendor:- Complete details of all activities undertaken including alignmentreading, readings of foundation mounts of ME and GB are to beforwarded by the Vendor to ND(MB)

(x) Duration of Warranty Period Recommended and nature of assistancerequired after completion of warranty:- 06 month from the time of completion of HATs <(>&<)> SATs.

(y)Requirement of pre-site/equipment inspection: No

(z) Any other details, as considered necessary: Nil

(aa) Disposal of Scrap/Debris to be responsibility of Vendor (Yes/No).If yes indicate where and how the scrap/debris is to be disposed: No

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(bb) Indicate who will be the owner scrap/debris: Nil

(cc) Is de-gutting and re-gutting the responsibility of vendor (Yes/NO).If yes indicate the details of items (such as cables/pipes etc to bedegutted/re-gutted): No

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Annexure 2 to Encl - II to

RFP DYT/DAG/15-16/106A/PL/ABHAY MAIN ENGINE/241

Dated: 05 Jul 16

SCOPE OF WORK

REMOVAL AND INSTALLATION OF MAIN ENGINE (MTU 16V 1163 TB93) AND GEAR BOX # INS ABHAY

Following information to be noted by the Bidder :-

1. 12(a),,Earnest Money Deposit. (page no 2-3)The bidders are to furnish EMD for a sum of Rs 1,00,000/- (Rupees OneLakh Only) in the name of #ASD, ND(MB),Public Fund A/C No.50801010000031 of Syndicate Bank, ND,MB,(IFS Code SYNB0005080) # with avalidity of 45 days beyond the final bid validity period, in the form ofan Account Payee Demand Draft or Banker#s Cheque (including IDBI Bank)or Bank Guarantee as per Form DPM-13 (Enclosure VII to RFP) from any ofthe public sector banks or a private sector bank authorized to conductgovernment business viz. Axis / ICICI / HDFC Banks only, will beacceptable. EMDs from any other bank (including Co-op & ScheduledBanks) will not be accepted and bids will be liable fordisqualification. EMD is not required to be submitted by those Bidderswho are registered with Naval Dockyard (Mumbai)/NSIC/Central PurchaseOrganisations for the same item/range of products/goods or services.These firms must however submit a valid registration certificate withthe #T# bid, failing which their offers will be rejected.

2.,,Srl 12(b) PBG (page no-3)PBG: Bidders may note that the submission of PBG by L1 firm irrespectiveof their registration with any organization viz MOD/NSIC is compulsory.The bidder will be required to furnish a performance guarantee by way ofBank guarantee through a public sector or a private sector bankauthorized to conduct government business (ICICI bank Ltd, Axis bank Ltdor HDFC bank Ltd.) for a sum equal to 10% of the contract value in thefavor of ASD, ND(MB), public fund A/C No. 5080101000031 of Syndicatebank, ND,MB, (IFS Code SYNB0005080 ) within 30 days of receipt of theconfirmed order .Performance bank Guarantee ,,should be valid up to 60 days beyond thedate of warranty. The specimen of PBG is given in Form DPM-15 (Availablein MoD website and can be provided on request).

3. ,,Safety ( In lieu of srl 24 on Page no 8 of RFP)

Every contractor must observe all safety precautions in connection withthe work to be performed by him,his agent or workers as per detailsmentioned at Article 40 of Enclosure III of this RFP.

4.,,Article 7 PERFORMANCE BOND (page no-32)Bidders may note that the submission of PBG by L1 firm irrespective oftheir registration with any organization viz MOD/NSIC is compulsory. Thebidder will be required to furnish a performance guarantee by way ofBank guarantee through a public sector or a private sector bankauthorized to conduct government business (ICICI bank Ltd, Axis bank Ltdor HDFC bank Ltd.) for a sum equal to 10% of the contract value in thefavor of ASD, ND(MB), public fund A/C No. 5080101000031 of Syndicatebank, ND,MB, (IFS Code SYNB0005080 ) within 30 days of receipt of the

Page : 15/52

confirmed order .Performance bank Guarantee ,,should be valid up to 60 days beyond thedate of warranty. The specimen of PBG is given in Form DPM-15 (Availablein MoD website and can be provided on request).

5.,,ARTICLE 33 - ADHERENCE TO SAFETY NORMS BY CONTRACTORS ( NewArticle 33 added in Enclosure III on Page no 10 of RFP)

6.,,ARTICLE 33 ADHERENCE TO SAFETY NORMS BY CONTRACTORS ( New Article33 added on Page no 42 of RFP)

(a),,All rules, regulations, codes, and ordinance of the Government ofIndia, Government of Maharashtra and local bodies regarding the Safetyand Health will be applicable to the contractors.(b),,The Contractor or sub contractor shall be required to provide theirworkmen with relevant safety gear. The work-overall should have suitablecolour with the name of the contractor printed on it with prominentletters. It shall be ensured by the contractor#s supervisor that theworkers wear the overall and safety gears throughout their work durationin the premises of the dockyard.(c),, The contractor worker must ensure that the place of work is keptreasonably clean and all scrap / waste is transferred to nearby scrapgarbage bins, on completion of work in any location / compartment(d),,The management of Naval Dockyard reserves its right to suspend /revoke the work in the event of the contractor not complying with thesafety rules, instructions with regards to safety and health practicesas per prevailing statutory and legal requirements for which no claim ofany kind be entertained.(e),,The contractor or his agent must report the accidents / incidentsoccurring to his personnel promptly and immediately to concernedManager, Personnel Manager and SMIES. Subsequently, accident reports onForm No. 07 and Form No. 24(Supervisors reporting) are to be made.(f),,A representative of the contractor should maintain liaison withSafety department in addition to concerned Manager while undertakingrepairs of offloaded jobs regarding safety procedures.(g),,All contractors should go through the safety manual and followapplicable safety procedures concerning their works.(h),,The contractor should be fully responsible for the cleanliness andhousekeeping of the job site.(i),,The contractors should ensure that adequate fire extinguishers areprovided, where property is exposed to the hazard of fire. Open firewill not be permitted unless prior approval from concerned Manager isobtained.(j),,Tarpaulin used should be of fire retarding type. All worksgenerating dust or fume should be carried out in an enclosed space. Incase enclosed space is not available the entire work should be doneunder tarpaulin.(k),,Inflammable liquids must be handles in safe cans approved bydockyard and shall be stored in the locations allowed by competentauthority. All such containers or cans must be clearly labeled.(l),,The contractors working in confined spaces or pits, below theground level, must acquaint themselves with the safety proceduresrelated to that confined space. They should advise their employees ofhazards of gas or liquid levels and take proper precautions as per laiddown procedures (work permit etc).(m),,The contractors should ensure that first aid boxes are provided atwork places and they should ensure proper medical care of injuredpersons.(n),,All employees of contractors should wear appropriate PersonnelProtective Equipment#s PPE and use the correct tools and equipment toundertake the work. Further approved safely helmets and other safetygear are to be used while working in dry docks and other areas.(o) Carrying, storing, consuming intoxicants in the yard strictlyforbidden. Entering the yard in an intoxicated state is also an offence.

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NOTE: SMDAG TELEPHONE NO 022-2271548 (page no 6)--------------------------------------------------------------------NOTE :The Following documents are placed separately as an Enclosure to thisRFP(a),,Scope of Work(b),,MOQ(c),,QAP

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SOW/ MODE OF QUOTATION(To be strictly adhered to. Non-adherence to this format may result in disqualification)

S.No.

DESCRIPTION OF WORK QTY Deno Unit Rate in (Rs/Deno)

Total Rate in(Rs)

Total Material+ Services in

(Rs)

Remarks

(A) (B)Material

(C)Services

(D)Material

(E)Services

(F) (G=E+F)001 Draining of Lub oil, Fresh

water, Sea water and Fuel oil.Degutting of system lines(first connections)

2 NOS

002 Degutting of exhaust systemand removal of bellows andblanking the exhaust out let.

2 NOS

003 Removal of air intake filters,air intake housing (`Y' piece)and blanking of system.

2 NOS

004 Removal of heat shields. 2 NOS005 Disconnection of fuel line

first connection hoses.2 NOS

006 Disconnection of lub oil linehose connection

2 NOS

007 Disconnection of starting airline hose connection.

2 NOS

008 Disconnection of S/Water line,removal of rubber bellows andS/W suction and dischargepipes.

2 NOS

009 Disconnection of F/W linesfirst connections.

2 NOS

010 Decoupling and removal ofVulcon coupling.

2 NOS

011 Decoupling of Tooth coupling. 2 NOS012 Breaking of chock fasting

after taking main engines andgear boxes on jacks bolts.

2 NOS

013 Fitment of lifting eyes boltsin place if not

2 NOS

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fabrication/welding of eyebolts and load testing of eyebolts to specified value

014 Loosening of foundation boltsand buffers bolts on lockingthe engine by welding stopplates on engine foundation.

2 NOS

015 Locking of engine crankshaftwith special arrangementprovided by OEM.

2 NOS

016 Fitment of transportationclamps on engine mounts.

2 NOS

017 Manufacturing of stands toplace engines and gear boxeson Jetty and Transport it toshop

2 NOS

018 lifting of engines and Gearboxes

2 NOS

019 Foundation preparation of MainEngine , Gear Boxes whichinclude polishing and grindingto ensure flatness offoundation

2 NOS

020 Drilling of hole for fixingmain engine and gear box tofoundation and side support tofoundation for alignment.

2 NOS

021 Fitment of tooth coupling postsurface preparation offoundation and manufacturingof nuts bolts for coupling ofgear box to tooth coupling.

2 NOS

022 Alignment of thrust bearingw.r.t. Tail shaft. Preparationof Metallic chock and Torquetightening of tail shaft withthrust bearingusing specialized hydraulictorque tightening machines

2 NOS

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023 Lowering of Main engines andsecuring on loose holding downbolts.

2 NOS

024 Lowering of gear box withtooth coupling drum.

2 NOS

025 Alignment of gear box withreference to thrust bearinginput shaft, on jack bolts.Ensure lub oil priming of G/Bduring alignment

2 NOS

026 Preparation of dam for chockfasting.

2 NOS

027 Chock of gear box foundation. 2 NOS028 Tightening of foundation bolts

to specific torque2 NOS

029 Alignment of Main engine withreference to G/Box inputflange according to OEM laiddown procedures on jack bolts.

2 NOS

030 Preparation of dam for chockfasting in section.

2 NOS

031 Pouring of chock fast. 2 NOS032 Tightening of foundation bolts

(96 in nos. to specifiedtorque).

2 NOS

033 Fitment of side stoppers andbuffer bolts and maintainingspecified clearances.

2 NOS

034 Fitment of first connectionsof all system lines.

2 NOS

035 Maintaining the proper heightof exhaust compensators bywelding tie rods and fitmentfor exhaust compensator.

2 NOS

036 Fitment of intake manifold (Ypiece) and air filters.Fitment of heat shield.

2 NOS

037 Fitment of all system linesand flushing of lines which

2 NOS

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includes fuel, lub oil, Seawater, Fresh water, Exhausttrunking of Main engine and D/A and Main airtrunking of Main engine.

038 Fitment of brackets, Gratingand frames

2 NOS

Taxes and all applicable duties are asfollows

(a) Custom duty (if applicable)(b) Excise duty @________ % (if applicable)(c) Freight Charges (if applicable)(d) Octroi @_______ % (if applicable)(e) Transportation & packing charges (if

applicable)(f) VAT @________ % (if applicable)

Grand Total

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Note - 1. All material and services are to be supplied by the contractor unlessSpecifically mentioned in the SOW. (all requirements of Welding and Brazingwill be in Scope of supplier)2. All applicable taxes and requirement of duty exemption certificate are tobe clearly mentioned in Q-Bid. All prices are to be indicated in both wordsand figures.3. The Bidder, while preparing Q-bid, is to strictly adhere to Mode ofQuotation (MOQ) format. No deviation from the MOQ format is expected. TheBidder is to avoid making any changes to the MOQ format and in case of anydiscrepancy, seek clarification during the pre-bid meeting. A soft copy ofQuote/MoQ in excel format on a CD is to be submitted in sealed manner alongwith the 'Q' Bid (not applicable, in case bidder is quoting on Web through E-tendering system. Non adherence to this may render the bid invalid.4. Total cost implication including taxes to be clearly indicated in the Qbid, failing which firms are liable to be disqualified.5. In case the Quote runs into more than one page subtotal on each page to beIndicated.6. Taxes as extra are to be clearly mentioned in Q bid. If not mentionedQuote will be considered inclusive of Taxes.7. Bids should be forwarded by Bidders under their memo/letter pad inter aliafurnishing details like TIN number, VAT/CST number, Bank address with EFTAccount if applicable, etc. complete postal and e-mail address of theiroffice and also the valid landline and mobile numbers.Nos.8. Total Number of pages in the Q-bid are to be mentioned on the first pageof the Q-bid. Further each page is to be numbered. For example if there are20 pages in Q bid, first page to be numbered as 1/20 and last page to beNumbered as 20/20.9. Staging, if required, is to be undertaken in accordance with IS 4014 PartI & II (Code of practice for steel tubular scaffolding).10. Foreign Exchange Content. Foreign Exchange content, if any, is to beClearly specified along with the specific items on which customs duty wouldbe applicable clearly indicating the rates of customs duty applicable. In theabsence of complete unambiguous details, following actions will be taken:-(i) Loading custom duty at the rate of 25% on entire material cost, when"Foreign Exchange" content is not specified in the Q bid.(ii) Loading custom duty at the rate of 25% when applicable rate of customsduty is not specified in Q bid.(iii) Further, customs duty exemption certificate will be issued only if theabove mentioned particulars are provided unambiguously.11. Service Tax. Government of India, Ministry of Finance (Department ofRevenue) Notification No. 12/2012 'Service Tax', dated 17 Mar 2012 exempts'Service tax' for repair of ships or boats or vessels belonging to theGovernment of India. Firms are therefore requested to not to quote forservice tax.

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Enclosure III of RFP

STANDARD CONDITION OF CONTRACT FOR PARTIAL/COMPLETEREFIT/ REPAIRS OF SHIPS/SUBMARINES/MARINE AND SERVICE ASSETS

(Forms an integral part of the Contract, to be sent as Enclosure III of RFP)

TABLE OF CONTENTS

ARTICLE NO.-DESCRIPTION

1. ARTICLE 1 - DEFINITION AND ABBREVIATION

ARTICLE 2 - EFFECTIVE DATE AND OPERATION OF CONTRACT

ARTICLE 3 - SCOPE OF CONTRACT

ARTICLE 4 - CONTRACT PRICE AND TERMS OF PAYMENT

ARTICLE 5 - TAXES AND DUTIES

ARTICLE 6 - ADVANCE BANK GUARANTEE

ARTICLE 7 - PERFORMANCE BOND

ARTICLE 8 - DURATION AND DELIVERY

ARITCLE 9 - LIQUIDATED DAMAGES

ARTICLE 10 - RISK AND EXPENSE CLAUSE

ARTICLE 11 - QUALITY AND INSPECTION

ARTICLE 12 - WARRANTY & WARRANTY BOND

ARTICLE 13 - GENERAL TERMS AND CONDITIONS

ARTICLE 14 - INDEMNITY & INSURANCE

ARTICLE 15 - SECURITY

ARTICLE 16 - FORCE MAJEURE

ARTICLE 17 - TERMINATION OF CONTRACT

ARTICLE 18 - LAW

ARTICLE 19 - ARBITRATION

ARTICLE 20 - PENALTY FOR USE OF UNDUE INFLUENCE

ARTICLE 21 - AGENTS/AGENCY COMMISION

ARTICLE 22 - ACCESS TO BOOKS OF ACCOUNTS

ARTICLE 23 - NON DISCLOSURE OF CONTRACT DOCUMENTS

ARTICLE 24 - NOTICES

ARTICLE 25 - AMENDMENTS

ARTICLE 26 - FREE SERVICES BY NAVY

ARTICLE 27 - NOTICES & COMMUNICATIONS

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ARTICLE 28 - INTERPRETATION

ARTICLE 29 - ENVIRONMENTAL POLICY

ARTICLE 30 - LABOUR REGULATIONS

ARTICLE 31 - REMOVAL OF METAL SCRAP & DEBRIS

ARTICLE 32 - SIGNATURE AND WITNESSING BY PARTIES

2. ANNEX No.-DESCRIPTION

ANNEX 1: FORMAT OF CERTIFICATE OF ACCEPTANCE

ANNEX 2: FORMAT OF PROMULGATING CHANGE IN SCOPE OF WORK

ANNEX 3: BREAKDOWN OF CONTRACT PRICE

ANNEX 4: FORMAT OF WORK COMPLETION CERIFICATE (to be filled up wheneverbills are raised in accordance with terms of payment)

Page : 24 /52

Contract No._________

Date :__________

PREAMBLE

THIS Contract is made and entered into at MUMBAI, on this_____ day of the Month of _________ in the year _____________ (specify theyear in words), BETWEEN The President of India represented by ADMIRALSUPERINTENDENT, ND(MB) ,MUMBAI (hereinafter referred to as the CUSTOMER),which terms, unless excluded by the context, shall be deemed to include hissuccessor or successors and permitted assignees, ON THE FIRST PART

AND

M/s_______________ (Name of the Firm/Shipyard including the address),hereinafter referred to as the CONTRACTOR, which expression shall includetheir Administrator, Executors, Successors and Assignees, ON THE SECOND PARTand where as the CUSTOMER agrees to deliver /permit (Name of theVessel/Asset) to the CONTRACTOR for undertaking ________(Title of the Work)and to take delivery of (Name of the Vessel/Asset) from the CONTRACTOR aftersuccessful ______(Title of the Work undertaken) The CUSTOMER and theCONTRACTOR being hereinafter referred to as "Party" or "Parties".

It is now agreed by and between both the parties hereto as follows:

ARTICLE 1 - DEFINITIONS AND ABBREVIATIONS

1.1 DEFINITIONS

The following words and expressions in this Contract including itsAnnexes shall have the meanings as hereinafter defined unless the contextrequires otherwise:-

Actuals: The term Actuals, related to payment, shall mean all expenses,inclusive of those incurred towards associated cost elements such as alltaxes, duties & levies, freight, insurance and clearance charges incurred bythe CONTRACTOR and computed at the prevailing exchange rate whereverapplicable, at the time of release of payments by the CONTRACTOR to the OEMs.

Article: Any Article of this Contract or partial Article with separatemarginal number as referred to anywhere in the wording of this Contract and /or its Annexes.

Certificate of Acceptance: The Certificate to be signed jointly by therepresentatives of the CONTRACTOR and the CUSTOMER on the Date of Delivery ofthe Ship as set out in Article 8.1.1 and Annex 1 of this Contract.

Contract: Shall mean this Contract including its Preamble, Articles ___ to __and Annexes __ to __ herein, and all amendments, changes, alterations andmodifications made to this Contract.

Material: The term Material shall mean all equipment, fittings, finished /semi finished products, spares, consumables, Yard material, items,sub-assemblies / assemblies, documentation etc. required for the removal,repair & refurbishment, refit/installation and testing of any part of thework being undertaken by the CONTRACTOR (and/or by his Subcontractors on hisbehalf) as per scope of his work defined in this Contract, upto completion ofthe guarantee period and liquidation of his outstanding liabilities. COAAgency assigned by the Competent Financial Authority on behalf of thePresident of India to conclude the contract and operate in accordance withArticle 2.1.

Month: Any calendar month, as defined in the Gregorian Calendar, or any

Page : 25 /52

period of 30 consecutive Days.

Year: Year starting from the 1st January and ending on 31st December or anyperiod of 12 consecutive Months, as the case may be.

1.2 ABBREVIATIONS

The following words and abbreviations in this Contract including itsAnnexes shalll have the meanings as hereinafter defined unless the contextrequires otherwise:

B & D Spares : Base & Depot Spares

DCD : Dockyard Completion Date

FAT : Factory Acceptance Trials

HAT : Harbour Acceptance Trials

SAT : Sea Acceptance Trials

MoD : Ministry of Defence

OBS : On Board Spares

PAC : Proprietary Article Certificate

OEM : Original Equipment Manufacturer/ Firm accorded PAC

TEC : Technical Evaluation Committee

CNC : Contract Negotiation Committee

R & R : Remove and Refit

COA : Contract Operating Authority

ABER : Anticipated Beyond Economical Repairs

A's & A's : Additions and Alterations

QAP : Quality Assurance Plan

(Note: All Abbreviations pertaining to the case, which require clarificationare to be listed here and should form part of RFP)

ARTICLE 2 - EFFECTIVE DATE AND OPERATION OF CONTRACT

2.1 It is hereby agreed and declared that the powers and functions of theCUSTOMER under this Contract, shall be exercised by Integrated CommercialDepartment,ND(MB) ,MUMBAI.2.2 The Effective Date of Contract is __________________. The Contractcommences from the Effective Date of Contract.

ARTICLE 3 - SCOPE OF CONTRACT

3.1 Work & Services Contracts

3.1.1 It is expressly understood and agreed between the CUSTOMER and theCONTRACTOR that this is a repair, refit and services Contract.

3.2 Scope of Work

Page : 26 /52

3.2.1 The REMOVAL AND INSTALLATION OF MAIN ENGINE (MTU 16V 1163 TB 93) ANDGEAR BOX # INS ABHAY is to be completed in accordance with the terms,conditions and provisions of this Contract, as detailed in the followingArticles.

3.2.2 The Scope of Work is placed at Annex 2 of this Contract.

3.3 Removal and Refitting of Items

3.3.1 In the event of the requirement to remove the existing machinery/equipments, switch-boards / control panels, electronic & communicationequipments, light fittings, piping, trunking, valves, electrical cables,junction boxes, lagging, panelling, obstructions, protrusions, foundations,etc. falling in the way of repairs, temporarily to facilitate completion ofScope of Work, the CONTRACTOR shall reinstall the same as per drawings,amendments thereto and to the satisfaction of the CUSTOMER. All workassociated with this Article forms an integral part of Scope of Workspecified in Article 3.2.

3.3.2 Electrical cables in way of repairs, if required, are to be coveredadequately for protection against accidental mechanical / fire damage, by theCONTRACTOR. Damages caused during the execution of the work by the CONTRACTORor his Sub Contractors are to be made good by the CONTRACTOR at his cost.

3.3.3 All pipe lines, machinery, equipment and fittings which are notrequired to be taken out of the Ship are to be properly covered / secured toensure they are not damaged during the course of the refit. Damages causedduring the execution of the work by the CONTRACTOR or his Sub Contractors areto be made good by the CONTRACTOR at his cost.

3.4 Change in Scope of Work

3.4.1 Notwithstanding the scope of work specified in Article 3.2 and 3.3.1,the CUSTOMER shall have the right to modify the Scope of Work during theexecution of the Contract. The necessity for repairs/ renewals/replacementsother than those presently included in the Scope of Work may arise during theinspection/survey/repair. All such work as also consequential work (rework)required to be done by the CONTRACTOR along with work arising out ofitems/drawings supplied by the CUSTOMER shall be treated as Scope of Work.

3.4.2 Such changes in the scope of work and the cost and time implicationsthereof shall be mutually agreed upon on priority, in writing, beforeundertaking such changes in the scope of work. The resultant increase in costas well as any extension in project duration will be intimated by theCONTRACTOR and shall be agreed and accepted by the CUSTOMER through mutualnegotiations prior to undertaking such changes in Scope of Work. Format forpromulgating of Change in Scope of Work is placed at Annex - 3 of thisContract.

3.4.3 In case promulgation of such change in Scope of Work affects theInitial Scope of Work as per Article 3.2 and 3.3 and/or additional Scope ofWork as per article 3.4.1, the cost and time implications due to suchchanges, shall also be taken in to consideration by both the Parties, whilepromulgating the change in Scope of work in accordance with Article 3.3.

3.5 Procurement of Material by the CONTRACTOR

3.5.1 A list of items procured, indicating landed cost which includes cost ofmaterials, freight, insurance, packing/forwarding taxes, duties, clearingcharges etc. will be furnished along with the bill raised by the CONTRACTORon the basis of Third Party Invoice.

3.5.2 All material and items procured by the CONTRACTOR for Scope of Work,except where specifically indicated that such items are CUSTOMER supplied,are to conform to the relevant approved and applicable specification (in

Page : 27 /52

accordance with Article 10).

3.6 Sub-Contracting

3.6.1 The CONTRACTOR may subcontract any part of Scope of Work on mutualagreement with the CUSTOMER. The CONTRACTOR can under no circumstancesub-contract the complete Scope of Work to a Third Party.

3.6.2 The CONTRACTOR would be entirely responsible for quality / standard andtimely execution of the sub-contracted work. The CONTRACTOR is to draw up asuitable Quality Assurance (QA) Plan with the Sub- Contractor and a copy ofthe same along with Record of Inspection in accordance with such QA Planshall be submitted to the CUSTOMER.

3.6.3 The supervision of work for the sub-contracted jobs is to be done bythe CONTRACTOR. The CONTRACTOR is not permitted to seek any extension ofCompletion Date citing delay on the part of Sub- Contractors or re-workarising out of Sub-Contracted work.

3.7 Employment of Service Personnel. The CONTRACTOR shall not employ anyservice personnel of the Indian Navy or on his own take any assistance eitherdirectly or indirectly from any of the workshops / facilities of the ND(MB)in the form of men or material for Scope of Work.

ARTICLE 4 - CONTRACT PRICE AND TERMS OF PAYMENT

4.1 CONTRACT PRICE

4.1.1 This is a Fixed Price Contract for completion of Work specified inArticle 3.2 and 3.3. The Contract price is Rs. ________/- (Rupees..... )inclusive of applicable taxes. A detailed breakdown of the Contract price,including applicable taxes and duties (calculated as per the existing rate)is placed at ANNEX - 6 of this contract.

4.1.2 Notwithstanding the provisions contained in Article 4.1.1, the price issubject to revision upon mutual agreement, as and when scope of work ischanged as per Article 3.4, ERV, Changes in Tax Rate, etc.

4.2 Change In Contract Price Due To Procurement Of Additional / NA Spares.Notwithstanding the Contract Price specified in Article 4.1 and as amendedvide Article 4.2, the CUSTOMER shall pay for any additional/NA Sparesprocured by the CONTRACTOR for Scope of Work based on mutual agreement.Payment shall be made under this Article on the bill raised by the CONTRACTORon the basis of Third Party Invoice accompanied by list of items procured,indicating landed cost which includes cost of materials, freight, insurance.The Contract Price specified in Article 4.1 and as amended vide Article 4.2,shall further stand amended to include payment towards such additional/NASpares.

4.3 PAYMENT TERMS. The Payment Terms for the Contract Price specified inArticle 4.1 shall be as follows:-

Suggested stages of completion and terms of payment: - 60% Payment oncompletion of removal and installation. Final 40% on successful completion ofHATs/SATs.

ARTICLE 5 - TAXES AND DUTIES

5.1.1 The Contract price indicated in Article 4.1 of this Contract isexclusive of all taxes, duties, levies of Central / State authorities, asapplicable at prevailing rates under the extant Government policy for allMaterials and services procured by the CONTRACTOR for the Scope of Work. Anyincrease on rates during the period of contract shall be paid extra at thetime of invoicing. The same shall be reimbursed by the CUSTOMER to the

Page : 28 /52

CONTRACTOR at actual on submission of documentary proof of payment. TheCUSTOMER reserves the right to deny any increase in taxes, duties, levies,etc. if the delivery period is extended beyond the period specified inArticle 8.1.1.

5.1.2 Contract Operating Authority or his nominated representative shallissue appropriate tax exemption/concession certificate(s) on behalf of theCUSTOMER, to avail tax exemption/ concession, where applicable, as perexisting Government policy, rules and regulations in force.

5.2 "END USER" CERTIFICATE. Contract Operating Authority or his nominatedrepresentative shall issue the appropriate "End User Certificate" on behalfof the CUSTOMER, for import of material and services, wherever required bythe concerned manufacturer /supplier of equipment material and services /governmental agency.

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ARTICLE 6 - ADVANCE BANK GUARANTEE

The Bidder will be required to furnish an Advance BankGuarantee by way of Bank Guarantee through a public sector bank or a privatesector bank authorized to conduct government business (ICICI Bank Ltd., AxisBank Ltd or HDFC Bank Ltd.) for a sum equal to 100% of the advance paymentwithin 30 days of receipt of the confirmed order. Advance Bank Guaranteeshould be valid up to 60 days beyond the date of work completion. Thespecimen of advance bank guarantee is given below:-

FORMAT FOR BANK GUARANTEE FOR ADVANCE PAYMENT

From :Bank ___________________

ToThe President of India

Sir,

With reference to contract No. ___________________________________

_________ dated ___________________ concluded between the President of India,hereinafter referred to as 'the Purchaser' and M/s ____________________________________ hereinafter referred to as the "the contractor" for thedevelopment and supply of ___________________________________ as detailed inthe above contract which contract is hereinafter referred to as "the SaidContract" and in consideration of the Purchaser having agreed to make anadvance payment in accordance with the terms of the Said Contract to the saidcontractor, we the ______________________________________bank, hereinaftercalled 'the Bank' hereby irrevocably undertake and guarantee to you that ifthe Said Contractor would fail to develop and supply the stores in accordancewith the terms of the Said Contract for any reason whatsoever or fail toperform the Said Contract in any respect or should whole or part of the saidon account payments at any time become repayable to you for any reasonwhatsoever, we shall, on demand and without demur pay to you all and any sumupto a maximum of Rs. _______ (Rupees _________________________________ only)paid as advance to the Said Contractor in accordance with the provisionscontained in Clause ________________________ ________ of the Said Contract.

2. We further agree that the Purchaser shall be the sole judge as to whetherthe contractor has failed to develop and deliver the stores in accordancewith the terms of the Said Contract or has failed to perform the saidcontract in any respect or the whole or part of the advance payment made toContractor has become repayable to the Purchaser and to the extent andmonetary consequencesthereof by the Purchaser.

3. We further hereby undertake to pay the amount due and payable under thisGuarantee without any demur merely on a demand from the Purchaser stating theamount claimed. Any such demand made on the Bank shall be conclusive andbinding upon us as regards the amounts due and payable by us under thisGuarantee and without demur. However, our liability under this Guaranteeshall be restricted to an amount not exceeding Rs_________________________Rupees______________________________________ only).

4. We further agree that the Guarantee herein contained shall remain in fullforce and effect for a period of 12 months from the date the last advancepayment was made or for a period of 90 days from the date on which finaldelivery of the stores after development was made and accepted by thePurchaser whichever falls later unless the Purchaser in his sole discretiondischarges the Guarantee earlier.

5. We further agree that any change in the constitution of the Bank or theconstitution of the contractor shall not discharge our liability hereunder.

Page : 30 /52

6. We further agree that the Purchaser shall have the fullest liberty withoutaffecting in any way our obligations hereunder with or without our consent orknowledge to vary any of the terms and conditions of the Said Contract or toextend the time of development/delivery from time to time or to postpone forany time or from time to time any of the powers exercisable by the Purchaseragainst the contractor and either to forbear or enforce any of the terms andconditions relating to the Said Contract and we shall not be relieved fromour liability by reason of any such variation or any indulgence or forbearance shown or any act or omission on the Purchaser or by any such matteror thing whatsoever which under the law relating to sureties would but forthis provision have the effect of so relieving us.

7. We lastly undertake not to revoke the Guarantee during the currency of theabove said contract except with the prior consent of the Purchaser inwriting.

Yours faithfully,

for ____________________ Bank

(Authorised Attorney)

Place : ____________________Date : ____________________Seal of the Bank

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ARTICLE 7 - PERFORMANCE BOND

The Bidder will be required to furnish a Performance Guarantee byway of Bank Guarantee through a public sector bank or a private sector bankauthorized to conduct government business (ICICI Bank Ltd., Axis Bank Ltd orHDFC Bank Ltd.) for a sum equal to 10% of the contract value within 30 daysof receipt of the confirmed order. Performance Bank Guarantee should be validup to 60 days beyond the date of warranty. The specimen of PBG is givenbelow:-

Performance Bank Guarantee Format

From:Bank _______________

To,The President of IndiaMinistry of Defence,Government of IndiaNew Delhi

Dear Sir,

Whereas you have entered into a contract No._______dated_________ (hereinafter referred to as the said Contract) withM/s__________________________, hereinafter referred to as the "seller" forsupply of goods as per Part-II of the said contract to the said seller andwhereas the Seller has undertaken to produce a bank guarantee for( % ) oftotal Contract value amounting to _________ to secure its obligations to thePresident of India.

We the _______________ bank hereby expressly, irrevocably and unreservedlyundertake and guarantee as principal obligors on behalf of the seller that,in the event that the President of India declares to us that the goods havenot been supplied according to the Contractual obligations under theaforementioned contract, we will pay you, on demand and without demur, alland any sum up to a maximum of ____________Rupees _____________ only. Yourwritten demand shall be conclusive evidence to us that such repayment is dueunder the terms of the said contract. We undertake to effect payment uponreceipt of such written demand.

2. We shall not be discharged or released from this undertaking and guaranteeby any arrangements, variations made between you and the Seller, indulgenceto the Seller by you, or by any alterations in the obligations of the Selleror by any forbearance whether as to payment, time performance or otherwise.

3. In no case shall the amount of this guarantee be increased.

4. This guarantee shall remain valid for ..... months from the date of JRIacceptance of test consignment in India or until all the store, spares anddocumentation have been supplied according to the contractual obligationsunder the said contract.

5. Unless a demand or claim under this guarantee is made on us in writing oron before the aforesaid expiry date as provided in the above referredcontract or unless this guarantee is extended by us, all your rights underthis guarantee shall be forfeited and we shall be discharged from theliabilities hereunder.

6. This guarantee shall be a continuing guarantee and shall not be dischargedby and change in the constitution of the Bank or in the constitution ofM/s______________________________.

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ARTICLE 8 - DURATION OF THE DELIVERY

8.1 Duration of Work

8.1.1 The CONTRACTOR shall complete his scope of work specified in Article3.1 and 3.2 in 8 months from the Effective date specified in Article 2.1.Delivery by the CONTRACTOR shall be treated as complete on satisfactoryHATs/SATs and upon signing of Delivery Acceptance Certificate (applicable inthe case of complete Refit/Repairs of Ships/ Submarines only) OR Completionof Scope of Work and Trails (applicable in case of Refit/Repairs ofYard/Service Assets and partial Refits of Ships / Submarines.

8.1.2 The said duration of Refit specified in Article 8.1.1 may be extendedon mutual agreement only, with the CUSTOMER shall accept the vessel/assetwithout imposition of any sort of Penalty / Reduction in Contract Price.

8.2 Incomplete Work

8.2.1 The CONTRACTOR and the CUSTOMER shall mutually agree on the quantum ofincomplete and unsatisfactory work. Cost of such incomplete work shall bewithheld, except where such incomplete work is not attributable to theCONTRACTOR. Payment thus withheld will be made on completion of suchincomplete work, which should in any case be completed within __ days (to beindicated in the RFP). If such work is incomplete beyond the specified date,the same shall be deleted from Scope of Work specified in Article 3.2 withcorresponding amendment to Contract Price specified in Article 4.1. TheCUSTOMER reserves the right to levy LD on the entire value of the contract asper Article 9 in such cases.

8.2.2 The CONTRACTOR shall be paid for completion of work specified inArticle 8.4.1 only on satisfactory completion and trials.

ARTICLE 9 - LIQUIDATED DAMAGES

9.1 The CONTRACTOR shall be liable to pay to the CUSTOMER Liquidated Damages(LD), and not by way of Penalty, a sum equivalent to 0.5% (zero point fivepercent) of the Contract for each week of delay beyond duration of Workspecified in Article 8.1, subject to a maximum of 10% (Ten percent) of thetotal value of the goods / services delayed beyond the original date ofdelivery / completion of supplies / services indicated in the contract /supply order (Completion of entire work of the ship will be considered ascompletion of services).

ARTICLE 10 - RISK AND EXPENSE

10.1 Should the stores or any installment thereof not be delivered within thetime or times specified in the contract documents, or if defective deliveryis made in respect of the stores or any installment thereof, the Buyer shallafter granting the Seller 45 days to cure the breach, be at liberty, withoutprejudice to the right to recover liquidated damages as a remedy for breachof contract, to declare the contract as cancelled either wholly or to theextent of such default.

10.2 Should the stores or any installment thereof not perform in accordancewith the specifications / parameters provided by the SELLER during the checkproof tests to be done in the BUYER's country, the BUYER shall be at liberty,without prejudice to any other remedies for breach of contract, to cancel thecontract wholly or to the extent of such default.

10.3 In case of a material breach that was not remedied within 45 days, theBUYER shall, having given the right of first refusal to the SELLER be at

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liberty to purchase, manufacture, or procure from any other source as hethinks fit, other stores of the same or similar description to make good:-

(a) Such default.

(b) In the event of the contract being wholly determined the balance of thestores remaining to be delivered thereunder.

10.4 Any excess of the purchase price, cost of manufacturer, or value of anystores procured from any other supplier as the case may be, over the contractprice appropriate to such default or balance shall be recoverable from theSELLER.

ARTICLE 11- QUALITY AND INSPECTION

11.1 Quality Assurance & Quality Control

11.1.1 In order to assure the quality of repair/refit and exercise effectivecontrol, the work executed by the CONTRACTOR will be in accordance withCUSTOMERS inspection schedule as applicable followed by preliminary, stageand final inspection. The repair work will be undertaken as per specifiedStandards and quality norms. Ensuring and maintaining quality will be theresponsibility of the Shipyard.

11.1.2 The CONTRACTOR shall submit a Quality Assurance (QA) Plan asapplicable to the scope of work for approval of the CUSTOMER. The approved QAplan will form the basis for inspection and acceptance of work executed bythe CONTRACTOR under this contract.

11.2 Overseeing and Inspection

11.2.1 Necessary tests and inspections of the contracted job shall be carriedout by COA/ or his nominated agency. The CONTRACTOR shall give reasonablenotice to the above team reasonably in advance of the date and place of suchtests / inspections. COA shall also carry out joint receipt inspection of theequipment and material procured by the CONTRACTOR/ supplied by CUSTOMER. TheCUSTOMER's representative shall, during the repairs / refit invariably attendsuch tests and inspections as per the QA Plan/Quality Inspection Schedule.

11.2.2 Any non-conformity discovered by CUSTOMER Representative and intimatedin writing co-relating relevant documents where necessary, in Refit ormaterial or workmanship shall be corrected by the CONTRACTOR at his cost, tothe full satisfaction of Representative in accordance with the relevantdrawings and specifications.

11.2.3 During the repairs / refit of the Ship, until the delivery thereof,the CUSTOMER's representatives shall be given free and ready access to theShip/Submarine/Asset and to any other place where related work is beingperformed, or materials are being processed or stored, including the yards,workshops, stores and offices of the CONTRACTOR and premises ofSubcontractors who are doing work or storing materials, in connection withthe repairs / refit of the Ship/Submarine/Asset. Notwithstanding anyprovision in this Article or any other Article in this Contract, theresponsibility for the repairs / refit as per the scope of work vide Article3.2, 3.3 and 3.4 shall rest with the CONTRACTOR.

ARTICLE 12 - WARRANTY & WARRANTY BOND

12.1 Guarantee

12.1.1 The CONTRACTOR warrants that the repairs carried out under this

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Contract conform to specifications vide SOR.

12.1.2 The CONTRACTOR shall give as per SOW / 06 Months / 12 Months guarantee for workmanship and material defects for items repaired and as perSOW / 06 Months / 12 Months guarantee for new installations under thecontract from the Contract Completion Date. The guarantee clause will also beapplicable to the items repaired by the OEMs / sub contractor of shipyard.Any defects noticed during this guarantee period due to defective / poorworkmanship or sub-standard material shall be rectified free of cost by theshipyard or by the OEMs / sub-contractors under arrangements by the shipyard.

12.1.3 If within the period of warranty, the repairs reported by the CUSTOMERto have failed to perform as per the specifications, the CONTRACTOR shalleither replace or rectify the same free of charge, within ___ days ofnotification of such defect received by the CONTRACTOR provided that theequipment are used and maintained by the CUSTOMER as per instructionscontained in the Operating Manual. Record of the downtime would be maintainedby user in logbook. Spares required for warranty repairs shall be providedfree of cost by CONTRACTOR.

12.1.4 CONTRACTOR hereby warrants that necessary service and repair backup,during the warranty period of the repair, shall be provided by the CONTRACTORat the CUSTOMER'S premises.

12.2 Notice for Remedy/Rectification of Defects During Warranty Period shallbe in writing and transmitted to each other by the fastest possible means.

ARTICLE 13 - GENERAL TERMS AND CONDITIONS

13.1 Safety of Men: The CONTRACTOR is to ensure adequate safeguards forpersonnel when employed on work where human risk of health/injury isinvolved. All personnel including supervisors employed for the work on thepremises of the Yard will wear uniforms with firms name prominently printedon the front and back side. All employees of the firm should be provided withpersonal protective clothing such a shoes, gloves, cap, and Mayon etc.

13.2 First Aid: The CONTRACTOR is liable to provide immediate firstaid/hospitalization in case of accident/sudden illness to personnel.

13.3 Gas Free & Man Entry Certificates, Fire Sentries, Administrative Supportto OEMs, Pumping-out Facilities & Removal of Debris/Waste Material shall beas per Annexure 4 of SOR.

13.4 "In case of any accident/incident caused by the contractor or hispersonnel, which results in damage to government property or injury to anyperson, a show cause notice will be issued to the contractor. The contractoris to reply to the show cause notice within 07 days. Thereafter, oncompletion of investigation of the case, if the blame is found to beattributable to the contractor or his personnel, the contractor would beliable for a tender holiday of one year."

ARTICLE 14 - INDEMNITY & INSURANCE

14.1 Indemnity. The CONTRACTOR shall indemnify the CUSTOMER against allclaims for death or injury caused to any person, whether workman or not,while engaged in any process connected with the CONTRACTOR'S work or for duesof any kind whatsoever, and the CUSTOMER shall not be bound to defend anyclaim brought under the Workmen's Compensation Act, 1923 or Payment of WagesAct 1936, or any other statutory Act or Law in force from time to time andapplicable to the said work unless the CONTRACTOR first deposit with theCUSTOMER a sum sufficient to cover any liability which CUSTOMER may have toincur in relation to such proceedings.

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14.2 Insurance. The vessel shall not be insured during the repairs period asit is the property of Government of India and no Insurance Policy is takenfor Warship/Government vessel.

The items/work shall not be insured during the repair/refit period as itis the property of the Customer and no insurance policy is taken. TheContractor is liable to pay for any damage that may be caused to the stateproperty on account of negligence by his staff.

ARTICLE 15 - SECURITY

15.1 The CONTRACTOR is bound by the Official Secrets Act 1923 and, in itsconnection any other statutory Act / Law / Amendment in force and theinformation given is to be treated as strictly confidential and is not to bedisclosed to any person or persons not concerned therein. The CONTRACTORshall be responsible to ensure that all persons employed by him in theexecution of any work in connection with this Contract are fully aware of theprovisions of the Official Secrets Act 1923 / Law / Amendment in force andhave undertaken to comply with the same.

15.2 The CONTRACTOR shall also ensure secrecy of design, construction,equipment and documentation and shall carry out all or any instructions givenby the CUSTOMER in this respect. Should the CUSTOMER desire to check up thesecurity measures which have been provided, or will be adopted to achievesecurity, the CONTRACTOR shall produce necessary evidence to establish thesame.

15.3 In giving any information to the Sub-Contractors, the CONTRACTOR shallfurnish to the Sub-Contractors only such information as may be necessary forcarrying out the respective work entrusted to them.

15.4 The security of the Ship, men and material in the CONTRACTOR's premisesis the CONTRACTOR's responsibility.

ARTICLE 16 - FORCE MAJEURE

(a) Neither party shall bear responsibility for the complete or partialnonperformance of any of its obligations (except for failure to pay any sumwhich has become due on account of receipt of goods under the provisions ofthe present contract), if the non-performance results from such Force Majeurecircumstances as Flood, Fire, Earth Quake and other acts of God as well asWar, Military operation, blockade, Acts or Actions of State Authorities orany other circumstances beyond the parties control that have arisen after theconclusion of the present contract.

(b) In such circumstances the time stipulated for the performance of anobligation under the present contract is extended correspondingly for theperiod of time of action of these circumstances and their consequences.

(c) The party for which it becomes impossible to meet obligations under thiscontract due to Force Majeure conditions, is to notify in written form theother party of the beginning and cessation of the above circumstancesimmediately, but in any case not later than 10 (Ten) days from the moment oftheir beginning.

(d) Certificate of a Chamber of Commerce (Commerce and Industry) or othercompetent authority or organization of the respective country shall be asufficient proof of commencement and cessation of the above circumstances.

(e) If the impossibility of complete or partial performance of an obligationlasts for more than 6 (six) months, either party hereto reserves the right toterminate the contract totally or partially upon giving prior written noticeof 30 (thirty) days to the other party of the intention to terminate without

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any liability other than reimbursement on the terms provided in the agreementfor the goods received.

ARTICLE 17 - TERMINATION OF CONTRACT

The Buyer shall have the right to terminate this Contract in part or in fullin any of the following cases :-

(a) The delivery of the material is delayed for causes not attributable toForce Majeure for more than 1 month after the scheduled date of delivery.

(b) The Seller is declared bankrupt or becomes insolvent.

(c) The delivery of material is delayed due to causes of Force Majeure bymore than 1month provided Force Majeure clause is included in contract.

(d) The Buyer has noticed that the Seller has utilised the services of anyIndian/Foreign agent in getting this contract and paid any commission to suchindividual/company etc.

(e) As per decision of the Arbitration Tribunal.

ARTICLE 18 - LAW

The Contract shall be considered and made in accordance with the laws of theRepublic of India. The contract shall be governed by and interpreted inaccordance with the laws of the Republic of India.

ARTICLE 19 - ARBITRATION

19.1 All disputes or differences arising out of or in connection with thepresent contract including the one connected with the validity of the presentcontract or any part thereof should be settled by bilateral discussions.

19.2 Any dispute, disagreement of question arising out of or relating to thiscontract or relating to construction or performance (except as to any matterthe decision or determination whereof is provided for by theseconditions),which cannot be settled amicably, shall within sixty (60) days orsuch longer period as may be mutually agreed upon, from the date on whicheither party informs the other in writing by a notice that such dispute,disagreement or question exists, will be referred to a sole Arbitrator.

19.3 Within sixty (60) days of the receipt of the said notice, an arbitratorshall be nominated in writing by the authority agreed upon by the parties.

19.4 The sole Arbitrator shall have its seat in New Delhi or such other placein India as may be mutually agreed to between the parties.

19.5 The arbitration proceedings shall be conducted under the IndianArbitration and Conciliation Act, 1996 and the award of such ArbitrationTribunal shall be enforceable in Indian Courts only.

19.6 Each party shall bear its own cost of preparing and presenting its case.The cost of arbitration including the fees and expenses shall be sharedequally by the parties, unless otherwise awarded by the sole arbitrator.

19.7 The parties shall continue to perform their respective obligations underthis contract during the pendency of the arbitration proceedings except in sofar as such obligations are the subject matter of the said arbitrationproceedings.

(Note - In the event of the parties deciding to refer the dispute/s for

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adjudication to an Arbitral Tribunal then one arbitrator each will beappointed by each party and the case will be referred to the Indian Councilof Arbitration (ICADR) for nomination of the third arbitrator. The fees ofthe arbitrator appointed by the parties shall be borne by each party and thefees of the third arbitrator, if appointed, shall be equally shared by thebuyer and seller).

ARTICLE 20 - PENALTY FOR USE OF UNDUE INFLUENCE

The Seller undertakes that he has not given, offered or promised togive, directly or indirectly, any gift, consideration, reward, commission,fees, brokerage or inducement to any person in service of the Buyer orotherwise in procuring the Contracts or forbearing to do or for having doneor forborne to do any act in relation to the obtaining or execution of thepresent Contract or any other Contract with the Government of India forshowing or forbearing to show favour or disfavour to any person in relationto the present Contract or any other Contract with the Government of India.Any breach of the aforesaid undertaking by the Seller or any one employed byhim or acting on his behalf (whether with or without the knowledge of theSeller) or the commission of any offers by the Seller or anyone employed byhim or acting on his behalf, as defined in Chapter IX of the Indian PenalCode, 1860 or the Prevention of Corruption Act, 1986 or any other Act enactedfor the prevention of corruption shall entitle the Buyer to cancel thecontract and all or any other contracts with the Seller and recover from theSeller the amount of any loss arising from such cancellation. A decision ofthe Buyer or his nominee to the effect that a breach of the undertaking hadbeen committed shall be final and binding on the Seller. Giving or offeringof any gift, bribe or inducement or any attempt at any such act on behalf ofthe Seller towards any officer/employee of the Buyer or to any other personin a position to influence any officer/employee of the Buyer for showing anyfavour in relation to this or any other contract, shall render the Seller tosuch liability/ penalty as the Buyer may deem proper, including but notlimited to termination of the contract, imposition of penal damages,forfeiture of the Bank Guarantee and refund of the amounts paid by the Buyer.

ARTICLE 21 - AGENTS/AGENCY COMMISSION

The Seller confirms and declares to the Buyer that the Seller isthe original manufacturer of the stores/provider of the services referred toin this Contract and has not engaged any individual or firm, whether Indianor foreign whatsoever, to intercede, facilitate or in any way to recommend tothe Government of India or any of its functionaries, whether officially orunofficially, to the award of the contract to the Seller; nor has any amountbeen paid, promised or intended to be paid to any such individual or firm inrespect of any such intercession, facilitation or recommendation. The Selleragrees that if it is established at any time to the satisfaction of the Buyerthat the present declaration is in any way incorrect or if at a later stageit is discovered by the Buyer that the Seller has engaged any suchindividual/firm, and paid or intended to pay any amount, gift, reward, fees,commission or consideration to such person, party, firm or institution,whether before or after the signing of this contract, the Seller will beliable to refund that amount to the Buyer. The Seller will also be debarredfrom entering into any supply Contract with the Government of India for aminimum period of five years. The Buyer will also have a right to considercancellation of the Contract either wholly or in part, without anyentitlement or compensation to the Seller who shall in such an event beliable to refund all payments made by the Buyer in terms of the Contractalong with interest at the rate of 2% per annum above LABOR rate. The Buyerwill also have the right to recover any such amount from any contractsconcluded earlier with the Government of India.

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ARTICLE 22 - ACCESS TO BOOKS OF ACCOUNTS

In case it is found to the satisfaction of the Buyer that the Sellerhas engaged an Agent or paid commission or influenced any person to obtainthe Supply Order as described in clauses relating to Agents/Agency Commissionand penalty for use of undue influence, the Seller, on a specific request ofthe Buyer, shall provide necessary information/ inspection of the relevantfinancial documents/information.

ARTICLE 23 - NON DISCLOSURE OF CONTRACT DOCUMENTS

Except with the written consent of the Buyer, the Seller/ other partyshall not disclose the contract or any provision, specification, plan,design, pattern, sample or information thereof to any third party.

ARTICLE 24 - NOTICES

Any notice required or permitted by the contract shall be written inthe English language and may be delivered personally or may be sent by FAX orregistered pre-paid mail/airmail, addressed to the last known address of theparty to whom it is sent.

ARTICLE 25 - AMENDMENTS

No provision of this Contract shall be changed or modified in anyway(including this provision) either in whole or in part except by aninstrument in writing made after the date of this Contract and signed onbehalf of both parties and which expressly states to amend this Contract.

ARTICLE 26 - FREE SERVICES BY CUSTOMER

Generally ND(MB) (MUMBAI) provides electricity, water, compressedair and crane facilities free of cost. However the contractor shall berequired to make own arrangement to tap electricity, water , compressed airfrom the point of supply point indicated and lifting appliances like ropes,slings shackles with drawl gears etc.

ARTICLE 27 - NOTICES & COMMUNICATIONS

27.1 Address for Notice / Communication: The legal addresses of the Partiesfor the purpose of Notice/Communication are as follows:-

The Customer:The Admiral Superintendent of DockyardNaval Dockyard(Mumbai)Shahid Bhagat Singh RoadNaval DockyardMumbai-400001Fax No. :

Telephone Nos: [GM(R) 022-22751409] [AGM(PL) 022-22751471] [DGM(COM) 022-22751411] [AGM(PR)022-22751412] [SMCOMF022-22751413]

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Copy of communication to the CUSTOMER is to be endorsed to:

THE ADMIRAL SUPERINTENDENT(COMM)The Admiral Superintendent of DockyardNaval Dockyard(Mumbai)Shahid Bhagat Singh RoadNaval DockyardMumbai-400001Fax No. :(Legal Address of Contractor)

27.2 Language. Any and all notices and communication in connection with thisContract shall be in English language.

ARTICLE 28 - INTERPRETATION

28.1 This Contract shall be governed by the laws of Republic of India.

28.2 In the event of any conflict or discrepancy between the provisions ofany Article to this Contract and any Annex thereof, the Article of thisContract shall prevail.

28.3 This Contract constitutes the entire agreement between the CUSTOMER andthe CONTRACTOR.

28.4 Any amendment to this Contract and its Annexes shall be in writing andsigned by both Parties.

28.5 In the event of any conflict with respect tospecification/drawing/existing practices, the order of precedence foracceptance would be as follows :-(a) THE CUSTOMER APPROVED DRAWING(b) SPECIFICATION VIDE SCHEDULE OF REQUIREMENTS(c) THE CUSTOMER'S DECISION.

28.6 The failure of either Party to enforce any provision of this Contractshall not be considered as a waiver of such provision or the right of suchParty thereafter to enforce the same.

ARTICLE 29 - ENVIRONMENTAL POLICY

The yard is committed to continually improve upon environmental performancethrough pollution prevention and resource conservation. Contractors shouldstrive to:-(a) Minimize the generation of dust and noise by improving on operationalpractices.(b) Have effective utilization of utilities like water and electricity byrecycling and energy auditing.(c) Control generation and disposal of effluent water by appropriate effluenttreatment methods, Educate, train and motivate employees to execute theirtasks in an environmentally responsible manner.

ARTICLE 30 - LABOUR REGULATIONS

30.1 Contract Labour (R&A) Act. Contractor should obtain licence undersection 12 and 13 of the contract labour (Regulation & Abolition) act andrules made there under and the same should be kept valid atleast until theexpiry of contract with ND(MB) (MUMBAI). The licence should be shown as andwhen demanded by the concerned ND(MB) (MUMBAI) authorities. Failure to obtainthe licence may lead to termination of the contract. The Contractor shallcarryout his obligations and duties under the Contract labour (R & A) Act

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1970 and the rules framed hereunder.

30.2 Minimum Wages Act. The contractor shall pay to the employee not lessthan the minimum wages and allowances applicable to the Engineering Industryas notified from time to time by the State Govt. under the Minimum Wages Act.Contractor shall be responsible for timely payment of wages of all employeesengaged in ND(MB) (MUMBAI) not less than the prescribed minimum wages ineach case and without any deductions of any kind except specified byGovernment of permissible under the Payment of Wages Act.

30.3 PF Act & Scheme. The contractor wherever applicable shall cover all hiseligible employees engaged on ND(MB) (MUMBAI) jobs under the EmployeesProvident Fund Act & Scheme and Family Pension scheme and pay thecontribution both in respect of his employees and his own. He shall submitall the necessary returns and other particulars periodically as prescribedunder the said insurance scheme by filling requisite returns to concernedauthorities and obtaining Code Number/Account Numbers. Contractor shouldremit employees and employers contributions directly to the concernedauthorities with inspection and Administrative charges as per relevantprovision of the concerning Acts and Schemes made there under within 15 daysfrom the close of every month.

30.4 E.S.I. Act. Contractor should also cover all the contract labourersworking on ND(MB) (MUMBAI) jobs, under the Employees State In suranceAct and Scheme by furnishing necessary returns to appropriate authority andpay both employees and employers contributions in respect of these employeesto the concerned authorities within 20 days from the close of every month.Contractor should produce proof of such remittances to the contractingauthority along with full details of contributions etc, as and when suchdetails are sought. He shall also give us an undertaking that he will notengage any one on our work, who is not duly covered under the said ActScheme.

30.5 Uniform All personnel including supervisors employed for the work on thepremises of the Yard will wear uniform with firms name prominently printed onfront side and back side. All employees of the firm should be provided withpersonal protective clothing such a shoes, gloves, cap, and Mayon etc.

ARTICLE 31 - REMOVAL OF METAL SCRAP & DEBRIS

Removal of Metal Scrap & Debris (While working inside Dockyard) :-Metal scrap generated by cutting, welding of plates will be yard's property.However the scrap will be collected, loaded/ unloaded by the contractor onhis own transport and landed at the Survey yard for survey. The debris(including cement waste, broken pieces of bricks, mud, soot, rust, grit,broken tiles, urinals etc) if any, are to be cleared to designated dumpingareas outside the yard by the contractor. The contractor is not to dump thescrap and debris at any place on the jetty without obtaining prior writtenpermission of the Manager, Civil Maintenance. Such permission will ordinarilybe granted only for a short duration to enable arrangement to be made for thetransportation of the scrap and debris.

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ARTICLE 32 - SIGNATURE AND WITNESSING BY PARTIES

This Contract is signed on _______ day of the month of _________ inthe Year ________, in two (2) originals of the same wording, one (1) for theCUSTOMER and one (1) for the CONTRACTOR. The Annexes listed in Table ofAnnexures (page 4) and forming an integral part of this Contract are signedunder same circumstances.

FOR AND ON BEHALF OF FOR AND ON BEHALF OF PRESIDENT OF INDIA

THE CUSTOMER

( )REPRESENTATIVE OF CONTRACTORDated _________________20

( )REPRESENTATIVE OF CUSTOMERDated _________________20

In the presence of

1. _____________________________

Name __________________________

Designation ___________________

2. ___________________________

Name _______________________

Designation ___________________

In the presence of

1. _____________________________

Name __________________________

Designation ___________________

2. ___________________________

Name _______________________

Designation ___________________

ii. Distribution :

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ANNEX- 1 to Encl - III to RFP

FORMAT OF CERTIFICATE OF ACCEPTANCE

CERTIFICATE OF ACCEPTANCE

1. CERTIFIED THAT M/S_______________________, HAVE COMPLETED THE(________________) OF (NAME OF THE VESSEL/ASSET) AS PER THE SCOPE OF WORKASSIGNED TO THEM AND HANDED OVER THE SAME TO (NAME OF CUSTOMER) AT____________ HOURS, ON THIS ________DAY OF THE MONTH _________________ IN THEYEAR TWO THOUSAND AND _________.

2. THE LIST OF LIABILITIES AS ON DATE IS PLACED AT ANNEXURE TO THISCERTIFICATE. _______________________ COA/REP FOR AND ON BEHALF OF THEPRESIDENT OF INDIA ____________________________ REP OF M/S___________.

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ANNEX- 2 to Encl - III to RFP

FORMAT OF PROMULGATION CHANGE IN SCOPE OF WORK

1. NAME OF WORK : ____________________

2. D.L. NO : _________________ (Wherever applicable) 3. Proposed by : ________________

4. Reference: _________________

Drg. Document _______________

5. Details of additional work (if required use overleaf of the form / attach Annexures)

NAME DESIGNATION SIGNATURE OF THE PROPOSER

6. (a) Proposal No._______________

(b) Effect on overall Schedule

(c) Approved Cost

REP OF FIRM/PROJECT MANAGER OF SHPYARD

7. Approved / Not approved

(Reasons if any)

COA/HEAD OF PROJECT MONITORING TEAM

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ANNEX- 3 to Encl - III to RFP

BREAKDOWN OF CONTRACT PRICE

Ser Description of Work/Service Material/Spares/Tax Rate (in Rs)

1. Cost of all services indicated in the SOR Cost of repair part of SOW inthe SOR :-

(a) Hull Work Package

(b) Engineering Work Package

(c) Electrical work Package

(d) Weapon Work Package

2. Cost of spares and material included in ser 2(a) to (d)

3. Cost of all other Services in the SOR (not covered under ser 1 and 2including OEM charges etc)

4. Service Tax on ser 1, 2 and 3, excluding 2 (e)

5. Works Contract Tax (if applicable on ser 1, 2, and 3)

6. Cost of Yard Materials

7. Budgetary Cost of Spares

8. VAT/Sales Tax applicable on ser 6 and 7

9. Octroi/other local levies applicable on ser 6 and 7

10. Customs Duty/Amount of Customs Duty for which Exemption is sought onser 6 and 7.

11. Excise Duty/Amount of Excise Duty for which Exemption is sought on ser6 & 7

12. Miscellaneous (not included in any of the serial above)

13. Applicable Tax/Duty/Levies on ser 12

14. Grand Total (ser 1 to 13)

15. Grand Total (excluding ser 10 and 11)

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ANNEX- 4 to Encl - III to RFP

FORMAT OF CERTIFICATE OF COMPLETION OF DEFECT WORK

COMPLETION CERTIFICATE

CERTIFICATE No..../ CC / DT

The under mentioned stage/Activity as per the Payment Terms have beencompleted:-

DESCRIPTION OF ACTIVITY/STAGE :

Rep Firm/Shipyard COA/REP

SIGNATURE

NameRankDesignation

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Enclosure IV of RFP

GUIDELINES FOR PREPARATION OF TECHNICAL BID

1. The Technical Bid should contain the following information and details soas to enable ND(MB), MUMBAI to assess the understanding, technical capabilityand infrastructure/resources of the ship repair yard to undertake the refit :-

(a) Indicate acceptance of the entire scope of work (or) Indicate acceptanceof the entire scope of work except ________. (Indicate specific jobs notbeing undertaken as a Deviation List).

(b) Indicate acceptance of the QAP/QIS indicated in SOR (or) Indicateacceptance of the QAP/QIS indicated in SOR ________. (Indicate specificprovisions not being undertaken as a Deviation List) (or) Forward a QAP/QISfor consideration of Technical Evaluation Committee.

(c) Indicate anticipatory list of spares, if applicable, required forundertaking the scope of work specified in SOR. Budgetary Estimate of allsuch spares is to be indicated in the Commercial Bid if such a list ofAnticipatory Spares is forwarded along with the Technical Bid.

(d) Indicate whether Earnest Money Deposit as per para 12 of the RFP has beenattached.

(e) Indicate acceptance of Payment terms as indicated in para 15 of the RFP.

(f) Indicate acceptance of Standard Conditions of Contract (SCOC) and otherterms and conditions given in the RFP.

(g) Indicate whether a License for undertaking contract work has so far beenobtained from the ministry of Labour & Employment. If yes, indicate thelicense number and date, and details there of.

(h) Indicate the maximum number of supervisors and the maximum number ofworkers thet are likely to be deputed for undertaking this contract work onany single day.

2. In order to facilitate quick processing of 'T' and 'Q' bids please fill upthe 'T' bid compliance matrix on the next page.

'T' BID COMPLIANCE MATRIX(TO BE SUBMITTED WITH THE 'T' BID

SL No DESCRIPTION REMARK1. Accept the entire scope of work as per

RFPYES/NO

2. If the answer to Question 1 above isNO, please list the specific jobs notbeing undertaken as a deviations listand attach with this matrix.

LIST OF DEVIATIONS FROMSCOPE OF WORKATTACHED/NOT ATTACHED/NA

3. Accept the QAP for the scope of work asper RFP

YES/NO/NA

4. If the answer to Question 3 above isNO, please list the specific jobs notbeing undertaken as a deviations list

LIST OF DEVIATIONS FROM QAP

ATTACHED/NOT ATTACHED/NA

Page : 47 /52

SL No DESCRIPTION REMARKand attach with this matrix. (asapplicable)

5. List of anticipatory spares is requiredto be attached with the 'T' bid (whereapplicable) and the costs of suchanticipatory spares attached with the'Q' bid.

Is the list of anticipatory sparesattached with the 'T' bid (ifapplicable)?

YES/NO/NA

6. EMD submitted in accordance with Para12 of the RFP

YES/NO/NA

7. Cost of Tender submitted in accordancewith Para 10 of the RFP (for OTE casesonly)

YES/NO/NA

8. Payment terms as per Para 15 of the RFPacceptable?

YES/NO

9. Standard terms and Conditions of theContract as per Enclosure-III of theRPF acceptable?

YES/NO

10. Itemised list for CDEC, EDEC, ODECenclosed with T-bid

YES/NO

11. Details of License for undertakingContract work attached

YES/NO

DETAILS OF CONTRACTORS/SUPPLIERS/VENDORS

SLNo.

MANDATORY INFORMATION DETAILS

1 Name of the Beneficiary as per BankAccount

2 Complete Postal Address

3 Telephone Numbers

4 E-Mail ID

5 Name of the Bank of Beneficiary

6 Branch Name

7 Branch Address

8 Nature / Type of Account (SB/Currentetc)

9 Bank Account Number of the Beneficiary

10 MICR Code (9 Digit Number printed onCheque leaf)

11 NEFT IFCS Code (4 Alphabets and 4

Page : 48 /52

SLNo.

MANDATORY INFORMATION DETAILS

Numbers Code)

12 Tin Details

13 PAN Card Details

14 VAT TIN No

15 CST TIN No

16 Service Tax TIN No

Page : 49 /52

Enclosure V of RFP

GUIDELINES FOR PREPARATION OF COMMERCIAL BID

1. Mode of Quotation at Enclosure VI of this RFP should be filled in allrespects.

2. The Unit cost/rate for each serial as also the total cost of repairs, e.gRs X for One Pump (unit rate) and Rs. Y for 5 pumps (total cost) andbudgetary cost of mandatory spares should be indicated against each DefectList Item. The cost of Anticipatory spares should not be indicated in the MOQand is to be quoted separately. The same will not be used for determining L1firm.

3. Bidders must indicate separately the relevant Taxes/Duties likely to bepaid in connection with delivery of completed goods specified in RFP. Inabsence of this, the total cost quoted by them in their bids will be takeninto account in the ranking of bids.

4. The evaluation and comparison of responsive bids and finalisation of L-1Firm shall he done on the prices of the goods offered and other charges suchas Packing & Forwarding, Freight and Insurance, AMC, etc, as indicated in theprice schedule of the Bid Document but excluding levies, taxes and dutiessuch as excise duty, VAT, Service tax, Octroi/entry tax, etc on finalproduct, which are to be paid extra as per actuals, wherever applicable.

5. Cost of yard materials such as steel plates, weld consumables, generalnature cables, pipes and tubes should be indicated separately. Whereas,Ferrous scrap shall be the property of the Contractor, Non-ferrous items andunused spares shall be the property of the Customer. The cost of FerrousMaterial indicated in the Bid should therefore be inclusive of discount forscrap value.

6. In case the commercial bid is running into more than one page, the sub-total of costs on each page is to be indicated at the bottom of that page.

7. Each page is to be authenticated (signed) by the Bidder.

8. Page numbering is a must to identify/locate missing/misplaced pages. (Total Nos of pages in the Q-bid are to be mentioned on the first page of theQ-bid. Further each page to be numbered. For example if there are 20 pages inQ bid, first page to be numbered as 1/20 and last page to be numbered as20/20.)

9. Bid Validity. The commercial bid is to be valid 180 days .

Page : 50 /52

Enclosure VI of RFP

SUMMARY SHEET FOR COSTING / QUOTATION

SLNo.

Description of Work/Service

Material/Spares/Tax

Rate (in Rs)

1. Cost of all services indicated in the SOR

2. Cost of repair part of SOW in the SOR

(a) Hull Work Package

(b) Engineering Work Package

(c) Electrical work Package

(d) Weapon Work Package

(e) Cost of spares and material includedin ser 2 (a) to (d)

3. Cost of all other Services in the SOR(not covered under ser 1 and 2 includingOEM charges etc)

4. Service Tax on ser 1, 2 and 3, excluding2 (e)

5. Works Contract Tax (if applicable on ser1, 2, and 3)

6. Cost of Yard Materials7. Budgetary Cost of Spares8. VAT/Sales Tax applicable on ser 6 and 79. Octroi/other local levies applicable on

ser 6 and 710. Customs Duty/Amount of Customs Duty for

which Exemption is sought on ser 6 and 711. Excise Duty/Amount of Excise Duty for

which Exemption is sought on ser 6 and 712. Miscellaneous (not included in any of the

serials above)13. Applicable Tax/Duty/Levies on ser 1214. Grand Total (ser 1 to 13)15. Grand Total (excluding ser 10, and 11)

Note: The Budgetary cost of Anticipatory Spares may be forwarded by thebidder separately, if the bidder opines that the same are required forcompletion of SOW. However, the same shall not be considered fordetermination of L-1.

Page : 51 /52

Enclosure VII of RFP

EMD Bank Guarantee format

Whereas ................................(hereinafter called the Bidder) hassubmitted their offer dated......................................for thesupply of ............................(hereinafter called the Bid) againstthe Buyer's Request for proposal No. ................................KNOW ALLMEN by these presents that WE ..............................of................................ having our registered office at................................................................ are boundunto ................................(hereinafter called the Buyer) in thesum of ..........................................................for whichpayment will and truly to be made to the said Buyer, the Bank binds itself,its successors and assigns by these presents. Sealed with the Common Seal ofthe said Bank this ........... day of ......... 20......The conditions of obligations are -

(1) If the Bidder withdraws or amends, impairs or derogates from the Bid inany respect within the period of validity of this tender.

(2) If the Bidder having been notified of the acceptance of his tender by theBuyer during the period of its validity.

(a) If the Bidder fails to furnish the Performance Security for the dueperformance of the contract.(b) Fails or refuses to accept/execute the contract.WE undertake to pay the Buyer up to the above amount upon receipt of itsfirst written demand, without the Buyer having to substantiate its demand,provided that in its demand the Buyer will note that the amount claimed by itis due to it owing to the occurrence of one or both the two conditions,specifying the occurred condition or conditions.

This guarantee will remain in force upto and including 45 days after theperiod oftender validity and any demand in respect thereof should reach the Bank notlater than the above date................................(Signature of the authorized officer of the Bank)Name and designation of the officerSeal, name & address of the Bank and address of the Branch

Page : 52 /52