Bidding:

What is bidding ?

Any formal and competitive procurement procedure through which offers are requested, received, and evaluated for the procurement of goods, works, and services and as a consequence of which an award is made to the bidder whose offer is substantially responsive and most competitive.

Benefits of Bidding:
Bidding procedure ensures that we receive the best value for our resources. It involves conducting a public-private competition to improve the value of the money we pay for the services or products. Benefits of Competitive Bidding are: Transparency Lower prices Better information Curbing Monopolies.

Limitations of Competitive Bidding

Time Consuming High cost of Tendering and Bid Preparation Suitable for Large Value Contracts. Not suitable for Small Value Contracts

Bidding
What are bidding documents ?

Bidding document constitute a set of documents which establish the object of the bidding (the technical specifications), specify proposed contract conditions and establish the bidding procedure to be followed.

Purpose of Bid Documents

Four main purposes : Instruct bidders on procedure for submission of bids. Describe goods/services/works to be procured. Inform bidders of criteria of evaluation Define conditions of contract

Factors to be considered while preparing Bid Document : Equity Fairness Transparency

Equity :
Terms and conditions are not unduly loaded in favour of the purchaser/owner.

Fairness :
Impartial, consistent and therefore reliable. It offers all interested contractors a level playing field on which to compete and thereby, directly expands the purchasers options and opportunities.

Transparency :
Establishes and then maintains rules and procedures

that are accessible and unambiguous.

Factors influencing terms & conditions specified in bidding documents

Type of Bidding

Funding of project
Availability of benefits to a project

(Deemed Export Benefit - Custom duty exemption)

Status of Project

Mega Power Project Non-Mega Power Project R&M

Types of Bidding

DCB
Domestic Competitive Bidding

ICB
International Competitive Bidding

International Competitive Bidding

Preferred for large contracts of goods, works and services
Where substantial savings accrue to Project Cost on

account of benefits available to Bidders. Competition is open to Domestic and Foreign Suppliers. Depends on the technology involved.

Domestic Competitive Bidding

Value of goods/services being procured are small Reasons such as emergency action/requirement

Contract involves significant transportation component and are labor intensive

Goods or works are available locally at prices

significantly below those in the international market

Bidding Procedures :
Single Stage

- Single Stage , Single Envelope - Single Stage , Two Envelope Two Stage Bidding

Single Stage - Single Envelope

Ideal where Technical Specifications are clear.
Past experience of procurement is available. Techno-Commercial and Price Bids are in one envelope. Both are opened at the same time.

Singlefor first time and/or complex procurement. Suitable Stage - Two Envelope
Technical and Price Bids in separate envelopes
First Bid opening - Only Technical Bid Adjustments to Techno-Commercial features by way of

Amendment to Bidding Documents. Supplementary Price invited only for adjustments. Second Bid opening - Price Bid and Supplementary Price Bid of responsive bidders only.

Two Stage Bidding

Ideal for complex equipment First stage

Invite Techno-Commercial proposals. Discuss with Bidders. Issue amendments to Bidding Documents to normalize the Technical Specifications and Commercial conditions wherever required. Second Stage Invite Price Bids fully complying to Bidding Documents.

Types of funding :
Multilateral Funding

WB World Bank JBIC- Japanese Bank for International cooperation. ADB- Asian Development Bank

ECB (Buyers credit) External Commercial Borrowings. Domestic Borrowings

Own Resources

Scope of procurement
Supply
Supply-cum-Erection/Supply-cum-Civil-Erection Civil works Consultancy

Qualification process to be adopted in selection

Pre-qualification
Post-qualification

Pre - Qualification
Practice Objective

- Large or complex civil works - Custom designed equipment - Specialized services - Saves expenses of bidding for unqualified bidders - Improves interest of leading contractors - Indicates interest of potential bidder - Reduces potential for controversy - Description of works, size or cost

Information provided
- Scope of contract - Source of finance, terms of payment - Implementation schedule and procedures

Pre - Qualification
Criteria

- Experience and past performances on contracts

- of similar type & size - under similar conditions - Personal qualifications - Financial status - past performances - liabilities/assets - Contract commitments - Equipment & plant proposed for work - Legal status

 Information requested

Pre - Qualification
- Minimum necessary - Use standard questionnaire

Number Prequalified
- All firms who meet minimum criteria Evaluation - Point system desirable - Minimum financial/physical resources may be specified Update - Bid documents may require update of information

Post - Qualification
Only for selected bidder
Criteria

- Capacity - Technical capacity - Product reputation - Financial resources - Spare parts and services - Past Performances If there was pre-qualification, confirm that bidders status is substantially same as at pre-qualification

Contents of sample Bid Document

The details and complexity of bidding documents vary according to the nature and size of the contract, they generally include: NIT/IFB(notice inviting tender/invitation for bid) ITB(instruction to bidder) Bid Data Sheet Evaluation & Qualification Criteria GCC(general conditions of contract) SCC(special conditions of contract)

NIT/IFB:
Notice Inviting Tender/Invitation for Bid
NIT/IFB is normally used to invite potential bidders to

present their bids for the project at hand. It describes : The Party floating the NIT/IFB Source of funding Indicates the goods/services to be procured Availability of Benefits to the project Whether Mega Power Project or not

Detail NIT

NTPC Limited (A Government of India Enterprise) CORPORATE CONTRACTS, NOIDA INVITATION FOR BIDS(IFB) FOR CONSULTANCY SERVICES FOR PREPARATION OF MINE PLAN ,FEASIBILITY REPORT & AREA DRAINAGE/NALLA DIVERSION STUDY OF DULANGA COAL MINING BLOCK ( International Competitive Bidding) IFB No.: CS-7015-751B-9 DATE: 18.07.2007 NTPC invites sealed bids from eligible bidders for Consultancy services for preparation of mine plan ,feasibility report & area drainage/nalla diversion study of Dulanga coal mining block as per the scope of work mentioned in the bidding documents and briefly described herein after . BRIEF SCOPE OF SERVICES The scope of services in brief includes preparation of Mine Plan ,Feasibility Report & Area drainage/Nalla diversion study of Dulanga coal mining block and clearance of the Mine Plan from the concerned Government/Statutory authorities. NTPC intends to finance the above Consultancy Package through Own Resources. 4.0 Detailed specification, scope of work and conditions are given in the bidding documents, which are available for examination and sale as per the following schedule: Bidding Document No. CS-7015-751B-9 Documents Sale Dates 18.07.2007 to 17.08.2007 & Timings from 1000 hrs to 1500 hrs. (IST) Bid Receipt Date & Time 18.09.2007 up to 10.30 Hrs.(IST) Bid Opening Date & Time 18.09.2007 at 11.00 Hrs.(IST) Cost of Bidding Document Rs.1125/- per set for Indian Bidders and US$25/- per set for Foreign Bidders 5.0 All bids must be accompanied by Bid Guarantee for Rs 1,28,000 (Indian Rupees one lakh and twenty eight thousand only) for Indian Bidders and US$ 3150 (US Dollars three thousand one hundred fifty only) for foreign Bidders as stipulated in the Bidding Documents. Bids not accompanied by the requisite Bid Security in a separate sealed envelope or bids accompanied by Bid Security of inadequate value shall not be entertained and in such cases, bids shall be returned to the bidders without being opened.

Detail NIT

6.0 QUALIFYING REQUIREMENTS FOR BIDDER Bidder should have successfully completed the following during the last seven (7) years preceding to the date of bid opening. Two (2) consultancy assignments each covering preparation of mine plan for open cast mines including approval from statutory authority, wherever applicable, out of which at least one (1) of the consultancy assignments should be for open cast coal/lignite mine. Two (2) consultancy assignments each covering preparation of feasibility report for open cast mines out of which at least one (1) of the consultancy assignments should be for open cast coal/lignite mine. 6.2 The scope of the assignments(s) mentioned at 6.1 (i) & (ii) above for open cast coal/lignite mine should have together covered geological studies, ore body modeling, estimation of reserve and quality, pit design, preparation of surface master plan, selection and sizing of equipment development of project implementation schedule, mine economics, estimation of capital investment, coal evacuation and environment management aspects. 6.3 Evidence of satisfactory completion of consultancy assignment shall be client certificate for both feasibility report & mine plan including approval of mine plan from statutory authority, wherever applicable. 7.0 NTPC reserves the right to reject any or all bids or cancel/withdraw the Invitation for Bids (IFB) without assigning any reason whatsoever and in such case no bidder/intending bidder shall have any claim arising out of such action. 8.0 A complete set of Bid documents may be purchased by any interested bidder on submission of a written application and payment (non-refundable) of the cost of bidding documents as mentioned at 4.0 above in the form of a Crossed Account Payee Demand Draft in favour of NTPC Limited, New Delhi. The bidding documents can also be downloaded from http://www.ntpctender.com on registration and online payment (non-refundable) towards cost of bidding documents and the downloaded documents can be used for bidding purposes. In case the registered bidders who have downloaded the bidding documents require an additional manual copy of the documents then such bidders shall be required to purchase the manual copy of the bidding documents following the procedure detailed above. Issuance of bid documents to any bidder shall not construe that such bidder is considered to be qualified. Bids shall be submitted and opened at the address given below in the presence of bidders representatives who choose to attend the bid opening. 9.0 Address for communication: Sr. Manager (CS-CM&CW) / Manager (CS-CM&CW), NTPC Ltd., Engineering Office Complex, A-8A, Sector 24, NOIDA, Distt. Gautam Budh Nagar, U. P., PIN: 201 301, India Tel Nos. : 91-120- 2410467 /2596676/2596639 FAX Nos. : 91-120-2410295 Websites: www.ntpctender.com or www.ntpc.co.in

ABRIDGED NIT
NTPC Limited (A Government of India Enterprise) CORPORATE CONTRACTS, NOIDA INVITATION FOR BIDS(IFB) FOR CONSULTANCY SERVICES FOR PREPARATION OF MINE PLAN ,FEASIBILITY REPORT & AREA DRAINAGE/NALLA DIVERSION STUDY OF DULANGA COAL MINING BLOCK ( International Competitive Bidding) IFB No.: CS-7015-751B-9 Date: 18.07.2007 NTPC invites sealed bids from eligible bidders for Consultancy services for preparation of mine plan ,feasibility report & area drainage/nalla diversion study of Dulanga coal mining block Bidding documents shall be on sale from 18.07.2007 to 17.08.2007 Bids shall be received up to 1030 hrs (IST) on 18.09.2007 and shall be opened on the same day at 1100 hrs. For detailed Invitation for bids and bidding documents, please visit at www.ntpctender.com or www .ntpc. co. in or contact Sr. Manager (CS-CM&CW) / Manager (CSCM&CW), NTPC Ltd., 6th Floor, EOC, A-8A, Sector-24, NOIDA-201301, Distt. Gautam Budh Nagar (U.P.), India Tel Nos. : 91-120-2410467 / 2596676/ 2596639 FAX Nos. : 91-120-2410295 .

ITB:
Instruction to Bidders
Provides information to the bidders regarding the

Forms, Procedure and Timing of bidding Construction of Contract.

BDS:
Bid Data Sheet Qualifying requirement Procedure for clarification Amount of Bid Security [ 2% of Cost Estimate ] Number of copies to be submitted Instruction on modification & withdrawal of bids Closing date, Validity of Bid [ normal sale period] Evaluation Criteria Applicability of preferences Award of Contract procedure

Qualifying Requirements
General

knowledge

- Regular supplier/manufacture having adequate - No change in Ownership anticipated during contract - Adequate financial stability - Adequate plant & manufacturing capability - Adequate field organisation

Specific Others

- Should have relevant experience as given IFB - Capacity/Capability assessment -Financial Requirements such as Networth,Bank Guarantee Limits, Cash Credit limits etc

GCC:
GeneralDefinitions of of Contract Conditions terms

Rights & Obligations of both parties Defect liability period Price Adjustment procedure Terms and Methods of Payment Contract Securities Damages for delay Settlement of disputes & Arbitration Procedure for variation Procedure for shipment/Insurance Governing Law Force Maejure

SCC: Special Conditions of Contract

Supplements the GCC for the particular procurement :
Schedule of supply - Specifies quantity, delivery

location and dates for reqd. items Specifies amount of securities Time/Work Schedule Package specific requirement

Technical Specifications/Drawings
This will contain the General Specifications, Design

Criteria, Parameters for individual Systems and Equipment and Parameters to be guaranteed in the Bid for conducting P&G tests to establish the same.

Forms & Procedures

This will contain the following:
Bid Form and price Schedules. Bid Security Form Bank Guarantee. Bid Security Form Bank Guarantee in case of Bid

Form Joint Venture Bid Security form Letter of Credit Form of Notification by the Employer to Bidder. Form of Sight Draft. Forms of Notification of Award. Form of Contract Agreement.

Forms & Procedures

Performance Security Form. Performance Security Form in case of contract awarded

to Joint Venture. Bank Guarantee Form for Advance Payment. Bank Guarantee Form for Advance Payment in case of Contract awarded to Joint Venture. Form of Completion Certificate. Form of Operational Acceptance Certificate. Form of Trust Receipt. Forms of Indemnity Bond (2 nos.)

Forms & Procedures

Form of Authorisation Letter. Forms of Deed of Joint Undertaking. Form of Bank Guarantee by Associate/Collaborator. Form of Joint Venture Agreement. Form of Bank Guarantee Verification Check List. Form of Extension of Bank Guarantee.

Evaluation & Qualification Criteria

This specifies the criteria that will be used to

evaluate the bids.

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

for promoting Indian goods. It helps in growth of our economy and utilization of our rich resources. Also, it gives level playing field to domestic players in competing with foreign players. provisions are envisaged in bidding documents depending upon project status:

Two types of

(1) Mega Power Project

(2) Non Mega Power Project

Mega Poweris Projectan officer not below the Mega power project certified by
(a)
(b) (c) (d)

(e)

rank of a Joint Secretary to the Government of India in MOP an inter-state thermal power plant of capacity of 1000MW or more; or an inter-state hydel power plant of capacity of 500MW or more, the power purchasing state has constituted the regulatory commission with full powers to fix tariffs undertakes to privatise distribution in all cities more than one million population, in that state, within a period fixed by MOP the power purchasing state has agreed to provide recourse to that states share of central plan allocations and other devolutions towards discharge of any outstanding payment in respect of purchase of power

Price Preference Mega Power Policy

Price Preference = 15% x LF
LF = CIF Price in Schedule-1 + CIF value of Import Content of Ex-works price in Schedule-2 The value of import content of Ex-works price quoted in schedule-2, shall be the value of import content as declared by Bidder in Attchment-9 to bid in respect of Plant & Equipment including mandatory spares to be manufactured or fabricated within the employers country and quoted on Ex-works (India) basis.

Price Preference Non-Mega Power Policy

Price Preference to domestic bidders participating in ICB to offset CST/OCTROI
Domestic Bidders with Local Content more than

30% Of Ex-works price of goods offered

Bidders will be evaluated and classified into groups for applying the criteria of Price Preference

New provisions in Bid Documents

Maintenance of records of weekly progress review

meeting at site

"The Contractor shall be required to attend all weekly site progress review meetings organized by the 'Project Manager' of his authorized representative The deliberation in the meetings shall interalia include the weekly program, progress of work (including details of manpower, tools and plants deployed by the contractor vis-a-vis agreed schedule) inputs to be provided by Employer, delays, if any and recovery program, specific hindrances to work and work instructions by Employer. The minutes of the weekly meetings shall be recorded in triplicate in a numbered register available with the 'Project Manage' or his authorized representative These recordings shall be jointly signed by the Project Manager of his authorized representative and the Contractor and one copy of the signed records shall be handed over to the Contractor

New provisions in Bid Documents

Interest Bearing Advance
With regard to mobilization advance, it has been decided that henceforth the mobilzation advance granted to contractors for the Installation/ Erection/ Civil portion of Contracts shall be specified as interest bearing for future packages. The rate of interest for such advances shall be specified as 12% per annum

New provisions in Bid Documents

Hosting of Bid Documents on WEB
It has now been decided that NTPC shall host the complete bidding documents on the website and all the prospective bidders would be permitted to download the bidding documents from the website for taking the advance action for submitting their bids. However, it would be mandatory for the prospective bidders to purchase the hard copy for bidding purposes

New provisions in Bid Documents Electronic Fund Transfer It has been now decided that wherever

direct payments are envisaged to be released under the contract, the same shall henceforth be released through Electronic Fund Transfer System, wherever technically feasible.

New provisions in Bid Documents

Contractor Performance Feedback and Ineligibility The Employer has in place an established 'Contractor Performance and Feedback System' against which the Contractor's performance during the execution of Contract shall be evaluated on a continuous basis at regular intervals. In case the performance of the Contractor is found unsatisfactory on any of the following four parameters, the contractor shall be considered ineligible for participating in future tenders for a period as may be decided by the Employer. Financial Status Project Execution and Project Management Capability Engineering & QA Capability Claims & Disputes

New provisions in Bid Documents

Fraud Prevention Policy
"The contractor along with their associate/ collaborator/ Subcontractors/ sub-vendors/ consultants/ service providers shall strictly adhere to the Fraud Prevention policy of the Employer displayed on its tender website:http://www.ntpctender.com The contractor along with their associated /collaborator/ subcontractors/sub-vendors/consultants/service providers shall observe the highest standard of ethics and shall not indulge or allow anybody else working in their organization to indulge in fraudulent activities during execution of the content. the Contractor shall immediately apprise the Employer about any fraud or suspected fraud as soon as it comes to their notice."

THANK YOU