IntegratedMMManual_27092022

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Applicable w.e.f. 01.02.

2015

Integrated Materials
Management Manual

POLICY MONITORING & CONTROL (PMC) SECTION

CORPORATE MATERIALS MANAGEMENT

NEW DELHI

Updated upto 14.05.2024

1
Purchase

2
Table of contents
Para
Title Page No.
number

1 Introduction 16
2 Forecasting 51
2.1 Introduction .................................................................................. 51
2.2 Quantity Forecast ........................................................................ 51
2.3 Value Estimation .......................................................................... 52
2.4 Revisions to budget .................................................................... 52

3 Category Management 53
4 Cost Estimation 55
4.1 Item-wise Estimated Cost in Indent ........................................... 55
4.2 Cost Estimation Methods............................................................ 55
4.3 Costing for hiring of consulting services / domain experts / TPIs
and certification agencies........................................................... 58
4.4 Costing for OEM / proprietary purchase.................................... 59
4.5 Costing for Civil /Electrical and other works ............................ 59
4.6 Costing in case of LSTK projects .............................................. 61
4.7 Revision of Cost Estimate .......................................................... 61

5 Scope of work (SOW) / Specifications 63


5.1 Specifications .............................................................................. 63
5.2 Goods and Services .................................................................... 39
5.3 Civil Works ................................................................................... 64
5.4 LSTK ............................................................................................. 40
5.5 Third Party Certification /Inspection Agency ............................ 66
5.6 Revision in Scope of Work ......................................................... 67

6 Indenting 68
6.1 Procedure for Placing Indent on Materials Management ......... 68
6.2 Process for Raising of PR under centralized procurement ..... 68
6.3 Process for Raising for PR de-centralized procurement ......... 69
6.4 OEM purchase ............................................................................. 45

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6.5 Appointment of Domain Experts/Consultants .......................... 45
6.6 Additional guidelines for preparation of PR .............................. 69
6.7 Technical Sanction for Civil Works ............................................ 46
6.8 Excess over Expenditure Sanction ............................................ 47
6.9 Capital Items Purchase ............................................................... 47
6.10 Radioactive material or items containing radioactive sources 72

7 Procurement strategy 48
7.1 Large project procurement strategy .......................................... 48
7.2 Procurement strategy of goods/services .................................. 49
7.3 Provision to use Empanelment .................................................. 50
7.4 Market Study ................................................................................ 51

8 Mode of tendering 77
8.1 Purchase through GeM DGS&D and NICSI rate contract ........ 52
8.2 Open tenders ............................................................................... 53
8.3 Electronic Reverse auction......................................................... 54
8.4 Limited Tenders ........................................................................... 56
8.5 Purchase on single tender .......................................................... 58
8.6 Hiring of services of Domain Experts/Specialists/Consultants:59
8.7 Petty purchases ........................................................................... 60
8.8 Purchase against Hand Quotations ........................................... 61
8.8.2 Purchase from State Emporium / Super Bazar / Govt. Deptt /
Undertakings ................................................................................ 61
8.9 Purchase through board of officers ........................................... 61
8.10 Emergency purchase .................................................................. 62
8.11 Expression of Interest (EOI) ....................................................... 63

9 System of tendering 101


9.1 Two bid system ............................................................................ 65
9.2 Single bid system ........................................................................ 65

10 Tender related officers and committees 103


10.1 Formation of Tender Committee and its monetary limits ........ 66
10.2 Convening of tender committee ................................................. 66
10.3 Brief for and level of tender committee ..................................... 66

4
10.4 Evaluation of bids by tender committee and preparation of
tender committee proceedings................................................... 68
10.5 Acceptance of recommendations of tender committee ........... 69
10.6 Executive Procurement Committee ........................................... 69

11 Bid package creation 112


11.1 Finalisation of Bid Evaluation Criteria (BEC) and floating of
tender............................................................................................ 73
11.2 Life cycle costing ........................................................................ 77
11.3 Quality and Cost based selection .............................................. 79

12 Bid invitation to bid receipt 127


12.1 Invitation of tender ...................................................................... 82
12.2 Enquiry register (Not applicable for e-procurement and open
tender) ........................................................................................... 82
12.3 Tender intimation to be sent to prospective bidders ............... 82
12.4 Submission of tenders for publication in press ....................... 82
12.5 Time to be allowed to tenderers to quote .................................. 82
12.6 Validity period .............................................................................. 83
12.7 Invitation to Bid ........................................................................... 84
12.8 Number of copies of offers to be called from bidders (Not
applicable for e-procurement) .................................................... 85
12.9 Variation in quantity after invitation of tender .......................... 85
12.10 Sale of bidding documents to firms with whom business has
been banned / suspended........................................................... 86
12.11 Tender fee .................................................................................... 86
12.12 Purchase of bidding documents by agents in India ................. 87
12.13 Refund of tender fee .................................................................... 87
12.14 Exemption from payment of tender fee ..................................... 87
12.15 Sale of bidding document .......................................................... 88
12.16 Tender register to be maintained at receipt of bids ................. 88
12.17 Pre-bid-conference (Wherever applicable) ................................ 88
12.18 Receipt of tenders ....................................................................... 91
12.19 Tender box ................................................................................... 92
12.20 Nomination of tender receiving / opening officer(s) ................. 92
12.21 Accounting of tenders................................................................. 92
12.22 Opening of tenders ...................................................................... 93

5
12.23 Numbering of tenders / disclosure of prices / reading out the
rates .............................................................................................. 94
12.24 Opening of tenders ...................................................................... 95
12.25 E-mail / fax offers ......................................................................... 96
12.26 Extension of tender closing / opening date .............................. 96

13 Tender Evaluation 145


13.1 Technical comments/Technical evaluation report on offers ... 97
13.2 Level for technical comments on offers .................................... 97
13.3 Comparative statement ............................................................... 97
13.4 Clarification from bidders after tender opening ....................... 99
13.5 Correspondence with bidders by indentors ............................ 102
13.6 Request for extension in validity of bid ................................... 102

14 Rate reasonability and Negotiations 156


14.1 Reasonability of rates ............................................................... 103
14.2 Negotiations ............................................................................... 105
14.3 Cancellation / re-invitation of tenders...................................... 107

15 Acceptance and Award of tender 167


15.1 Consideration of offers ............................................................. 167
15.2 Acceptance of tender ................................................................ 108
15.3 Signing of purchase order / contract ....................................... 109
15.4 Verification of the authenticity of the documents submitted by
the bidders ................................................................................. 110
15.5 Change of valuation type in PO against ICB tenders ............. 110

16 Miscellaneous 171
16.1 Splitting of tenders / purchase orders .................................... 171
16.2 Purchase of Machinery and Equipment ................................... 111
16.3 Tender Monitoring System ....................................................... 111
16.4 Guidelines for officials with personal interest in
companies/agencies participating in the tender ..................... 112
16.5 Earnest Money Deposit / Bid security...................................... 112
16.6 Security Deposit/Performance Security .................................. 114
16.7 Secured Advances ( For Works) .............................................. 118
16.8 Fall Clause.................................................................................. 119

6
16.9 Posting of summary of details of supply orders/contracts on
website ....................................................................................... 120
16.10 Reporting of nomination cases ................................................ 121
16.11 Change in Name/Address of the firms in ICE System ............ 122
16.12 Training/visits of ONGC executives against purchase of
equipments/services ................................................................. 122
16.13 Customs/Excise Duty related issues ....................................... 187
16.14 Submission of integrity pact and other documents by
bidders………………………………………………………………..128

17 Vendor Management 196


17.1 Registration................................................................................ 131
17.2 New vendor development ......................................................... 131
17.3 Vendor Empanelment ................................................................ 132
17.4 Vendor Appraisal ....................................................................... 134
17.5 Vendor Banning ......................................................................... 139

18 Claims and Warranties 217


18.1 Warranty and Guarantee ........................................................... 217
18.2 Liquidated Damages / Cancellation Clause............................. 217

19 Change Orders 223


19.1 Definition .................................................................................... 223
19.2 Change order process............................................................... 223
19.3 Variation in Quantity.................................................................. 226
19.4 Payment Schedule ..................................................................... 227

20 Purchase Order Tracking Process 228


20.1 Purchase Order .......................................................................... 228
20.2 Follow up of purchase orders .................................................. 228
20.3 Other clauses for delivery......................................................... 228
20.4 Shipping order placement ........................................................ 229
20.5 Air freight ................................................................................... 230

21 Inspection Process 233


21.1 Inspection................................................................................... 233
21.2 Inspection Agency ..................................................................... 233

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21.3 Inspection of materials.............................................................. 239
21.4 Inspection Process .................................................................... 239
21.5 Inspection and rejection of Materials by Consignee(s) .......... 240
21.6 Bulk Inspection (wherever applicable) ..........................................
21.7 Sampling, bonding and debonding of bulk materials (chemicals)
..................................................................................................... 161
21.8 Rejection of sample ................................................................... 162
21.9 Debonding and despatch of bulk materials (chemicals) ........ 162
21.10 Random Sampling ..................................................................... 162
21.11 Sub-standard Delivery of Items and Services ......................... 250
21.12 Third party inspection for accepting bulk supplies of oil field
chemicals from abroad ...................................................................

22 Payment Procedure 252


22.1 Payment Process ....................................................................... 165
22.2 Milestone Payment .................................................................... 165
22.3 Price escalation and adjustment .............................................. 254
22.4 Change in taxes and duties and other statutory changes ..... 255
22.5 Time Norms for processing of invoices by various sections 255
22.6 Intimation to suppliers/ contractors regarding deduction of
payments .................................................................................... 257

23 Contract closing 276


23.1 Contract closing process.......................................................... 276
23.2 Termination of contract / supply order .................................... 276

24 Other Issues 171


24.1 Subletting and Assignment: ..................................................... 278
24.2 Arbitration .................................................................................. 278
24.3 Post contract issues.................................................................. 278
24.4 Complaints / representations - consideration of .................... 279
24.5 Delays in insurance policy........................................................ 280
24.6 Specific issues for construction / turnkey projects................ 284
24.7 Management of Hazardous Chemicals/Materials .................... 284
24.8 Dispute Resolution through Outside Expert Committee ........ 284

8
24.9 Optimum drawl of Barytes to meet operational exigencies ... 285
24.10 Determination of CPA for extension of existing contract
awarded on nomination basis .................................................. 285
24.11 Deployment of manpower by the contractor………………… 178

25 Pre-tendering and tendering process for Proprietary


articles 287
25.1 Definition of proprietary articles .............................................. 179
25.2 Procurement Process................................................................ 180
25.3 Standard Terms and Conditions .............................................. 181
25.4 Other conditions ........................................................................ 181
26 Procurement of oil field chemicals
26.1 Procurement process ................................................................ 183

27 e-procurement 185
28 Procurement of Premium Bits on “Consignment
basis” 188
28.1 Special conditions of procurement process ........................... 188
28.2 Payment Process ....................................................................... 188
28.3 Other provisions ........................................................................ 188
28.4 Evaluation procedure ................................................................ 189

29 Procurement of items on High sea sales basis 190


29.1 Introduction ................................................................................ 190
29.2 Process for effecting High Sea Sales ...................................... 190
29.3 Terms of Purchase – On High Sea Sales Basis ...................... 190

30 Rate Contracts through IMPETUS 193


30.1 Introduction ................................................................................ 193
30.2 Definition .................................................................................... 193
30.3 Selection of equipment ............................................................. 193
30.4 Price basis.................................................................................. 194
30.5 Rate reasonability ...................................................................... 194
30.6 Annual Offtake ........................................................................... 194
30.7 Period of Rate Contract............................................................. 194

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30.8 Nodal agency ............................................................................. 194
30.9 Clarifications .............................................................................. 194
30.10 Negotiation ................................................................................. 195
30.11 Post Contract Modifications ..................................................... 195
30.12 Other conditions ........................................................................ 195
31 Business Development and Joint Venture
opportunities 196
31.1 Introduction ................................................................................ 196
31.2 Procedure for placing Purchase Requisition (PR) on materials
management .............................................................................. 196
31.3 Empanelment of consultants/advisors .................................... 197
31.4 Vendor Appraisal of Consultants/Advisors ............................. 198
31.5 Invitation of RFP/tenders for appointment of consultants ..... 198
31.6 Hiring of consultants/advisors on nomination ....................... 200
31.7 Cancellation/re-invitation of tenders........................................ 200
31.8 Extension of tender closing / opening date ............................ 200
31.9 Clauses in tenders (RFP) / engagement agreement ............... 200
31.10 Earnest money (bid security) and security deposit (performance
security) ...................................................................................... 200
31.11 Clarification from bidders after tender opening ..................... 201
31.12 Correspondence with bidders by indentors ............................ 201
31.13 Technical comments on offers ................................................. 201
31.14 Formation of tender committee and its monetary limits ........ 201
31.15 Evaluation of bids by tender committee, preparation of tender
committee proceedings & shortlisting of bidders .................. 202
31.16 Acceptance of recommendations of tender committee ......... 203
31.17 Proposals to Executive Committee (EC) ................................. 203
31.18 Consideration of offers & shortlising of bidders .................... 203
31.19 Reasonability of rates ............................................................... 203
31.20 Negotiations ............................................................................... 203
31.21 Powers for various activities .................................................... 203
31.22 Alterations in conditions of tenders (before issuance of tender)
..................................................................................................... 204
31.23 Post contract issues.................................................................. 204
31.24 Extension of completion date ................................................... 205

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31.25 Termination of contract............................................................. 205
31.26 Complaints / representations - consideration of .................... 205
32 Procedure for charter hiring of Aircrafts/Helicopters
for movement of VVIPs or to meet contingency/emergency 316
33 EPCG Cell 318
33.1 Roles and Responsibilities ....................................................... 208

34 Powers for various activities 320


34.1 Competent Authority for approving various activities ........... 320
34.2 Purchase Powers ....................................................................... 211
34.3 Placement of development order on a domestic bidder ........ 211
34.4 Miscellaneous powers of officers of materials management 211
34.5 Powers for purchase by negotiations ...................................... 212
34.6 Signing of POs / contracts ........................................................ 213
34.7 Exercising of powers of materials management discipline by
officers designated in the discipline of mechanical / electrical /
civil etc ....................................................................................... 213
34.8 Observance of laid down procedure ........................................ 213
34.9 Relaxation in conditions of tenders ......................................... 213
Annexure-A……………………………………………………………………215
Annexure-B ……………………………………………………………………217

Appendix 1 High Sea Sales Agreement 334


Appendix 2 Proforma of Undertaking 337
Appendix 3 Contract under Single Bid system 338
Appendix 4 Form for extension of completion date,
required due to entire delay being solely on account of
contractor/supplier 230
Appendix 5 Form for extension of completion date,
where delay, in part or full, is on account of ONGC 347
Appendix 6 Details of contracts/purchase orders 348

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Appendix 7 Details of contracts executed/completed 349
Appendix 8 Details of nomination cases 350
Appendix 9 Criteria for Ranking of Bidders for
Procurement of Premium Bits on Consignment basisError! Bookmark not
defined.
Appendix 10 Details and Documents to be submitted for
evaluation of Bits under Procurement on Consignment
basis 360
Appendix 11 Proforma of Undertaking 362
Appendix 12 Certificate by the Tender Committee
Members 363
Appendix 13 Proforma For Invocation Of Bank Guarantee 363
Appendix 14 Stock Holding Norms 249
Appendix 15 Format for preparation of CS

Appendix 16 Definition of works

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Warehouse Management

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35 Introduction 375
35.1 Introduction……………………………………………………………...251
35.2 Inventory Management Team Responsibilities……………………...251
35.3 Codification………………………………………………………………251
35.4 Insurance Items…………………………………………………………252

36 Clearing and Forwarding 253


36.1 C&F section responsibility ........................................................... 253
36.2 Receipt of transit documents and creation of inward entry .......... 253
36.3 Arrival of materials and creation of RCN...................................... 254
36.4 Damages/discrepancy in receipt of materials .............................. 255
36.5 Raising of discrepancy report ...................................................... 255
36.6 Despatch of material to outstation ............................................... 256
36.7 Preparation of despatch convoy note .......................................... 257
36.8 Escorting of materials .................................................................. 257
37 Transport and Shipping
37.1 T&S section responsibility............................................................ 258
37.2 Preparation for receipt of material ............................................... 258
37.3 Arrival of material ......................................................................... 259
37.4 Transportation and unloading of material (General)………………261
38 Receipt & storage of Material
38.1 Introduction .................................................................................. 262
38.2 Receipt of material ....................................................................... 262
38.3 Storage into main warehouse ...................................................... 264
38.4 Issue of material .......................................................................... 265
38.5 Receipt of material at site and booking of consumption .............. 268
38.6 Return and condemnation ........................................................... 269
38.7 Implementation of Radio Frequency Identification device(RFID) . 270
39 Stock Verification
39.1 Introduction .................................................................................. 272
39.2 Verification of stores, spares and capital items on stock ............. 272
39.3 Verification of assets ................................................................... 273
39.4 Procedure for write off ................................................................. 274

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40 Disposal Management
40.1 Introduction .................................................................................. 276
40.2 Initiation of disposal ,condemnation and transfer to salvage yard 277
40.3 Setting of reserve price and preferred methods of disposal…...286
40.4 Methods of disposal ..................................................................... 289
41 Inventory Management
41.1 Liquidation of Non Moving inventory ............................................ 301
41.2 Setting of Inventory levels............................................................ 302
41.3 Quarterly review: Tracking and monitoring of inventory ............... 304
41.4 Vendor Managed Inventory ......................................................... 304
Care & Preservation of Stores

42 to 45 PRESERVATION OF TUBULARS 431


46 to 50STORAGE AND PRESERVATION OF INDIGENOUS
CEMENT 435
51 PRESERVATION OF CHEMICALS 437
52 to 59 PRESERVATION OF RUBBERISED MATERIALS 439
60 to 65 PRESERVATION OF METALS 443
66 to 69 PRESERATION OF TEXTILES AND CORDAGE
STORAGE 446
70 PRESERVATION OF AIR TUBE CLUTCHES 448
71 PRESERVATION OF COMPRESSED GAS CYLINDERS 448
72 to 74 EXPLOSIVE-STORAGE AND USE 455
75 & 76 STORAGE AND PRESERVATION OF ELECTRONIC
EQUIPMENTAND COMPONENTS 458
77 & 78 STORAGE AND PRESERVATION OF MEDICINES 459
79 to 81 PRESERVATION OF TIMBER 460
82 to 88 PRESERVATION OF LEATHER MATERIALS 462

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89 Public Procurement Policy for MSEs 364

Introduction

1.1 Oil and Natural Gas Corporation Limited (ONGC) is an E&P company and the
operations in ONGC have been organised on the basis of CRC based structure
with working relations among Assets/Basins /Services, Institutes, Plants etc.

1.2 Purpose of the Manual

1.2.1 This manual is intended to act as a set of guidelines and reference book to be
followed in the performance of the materials procurement/ hiring of
Services/LSTK/ Warehouse management/ Inventory management/ Stock
verification/ disposal/ preservation of stores etc.

1.2.2 Provide the personnel involved in procurement with an understanding of their


responsibilities, objectives and duties within the framework of Company’s
overall policy

(MM/55/2020 dated 11.03.2020) (MM/05/2015 dated 01.06.2015)


(MM/112/2023 dated 30.11.2023)
(MM/126/2024 dated 14.05.2024)
1.3 For streamlining of procurements, Central Procurement Department (CPD)
headed by Chief Procurement Officer(CPO) shall handle procurement of items/
services mentioned at para 1.3.2 below on centralized basis.

Various Groups under CPO will handle centralized Procurement of Goods,


Services and LSTK/Works, at para 1.3.2 below.

For procurement of all other items, services & works respective


Assets/Basins/Institutes/ Plants etc. shall be responsible. Warehousing and
Inventory management functions have been decentralised to respective work
centers.

In case of urgency for procurement of items/services listed at para 1.3.2 below by


the concerned work centers, prior approval of CoDP shall be obtained.

(MM/05/2015 dated 01.06.2015)


(MM/112/2023 dated 30.11.2023)
1.3.1 In case, if it is felt by Work-Center or by CPD that if procurement of any item/service
needs to be centralized at CPD, same can be done after obtaining approval of

16
Head-MIND but detailed reasons/justification would have to be given as to why
procurement of that item/service is required to be centralized.

The Centralized list would be uedated by PMC based on past tender data and
recommendations of Work-centers. From January 2025 onwards PMC shall
uedate the list, prereferably twice a year based on internal data analysis done by
PMC Cell or feedback from user group if any. Any modifications to the Centralized
list of items/services/LSTK will be done with the approval of Head MIND.

1.3.2 Following is the List of item / services / LSTK/Works to be procured centrally by


CPD :

LIST OF CENTRALIZED ITEMS

1. LSTK (Offshore) Tenders under Centralized Procurement


Procurement Group: Central LSTK (Offshore) Procurement Group
Procurement Segment: Brownfield LSTK and Greenfield LSTK

Sl. Item Name Nodal Tech Agency


No.
1 All LSTK tenders above ₹10 Crore for Offshore OGEP
2 All LSTK tenders above ₹2 Crore for Offshore not Production Services
covered under the Scope of OGEP (currently being
done by FEG/equivalent groups at assets/plants)
3 All cross-functional LSTK tenders above ₹2 Crore Respective service NTA
pertaining to Offshore such as Offshore Drilling
Services, Asset Integrity
Group, etc.

Indicative List of items that would fall under LSTK NTA of OGEP is enclosed at
Appendix-A below.

(2.0) Procurement of Materials

(2.1) Chemicals, Oils and Lubes under Centralized Procurement


Procurement Group: Central Materials Procurement Group
Procurement Segment: Chemicals, Oils and Lubes

Sl. Item Name Nodal Tech Agency


No.
1. Chrome Free Deflocculant Technical Services

17
Sl. Item Name Nodal Tech Agency
No.
2. KCL Technical Services
3. CMC Technical Services
4. Oil Well Cement Technical Services
5. Bentonite Technical Services
6. Barytes Technical Services
7. Lubricants and Greases Technical Services
8. XC Polymers Technical Services
9. PAC (LV&RG) Technical Services
10. PHPA Technical Services
11. NIF (Non Invasive Fluid) Technical Services
12. Resinated Lignite Technical Services
13. Chrome Lignosulphonate (CLS) Technical Services
14. Chrome Lignite Technical Services
15. Spotting Fluid Technical Services
16. EP Lube Technical Services
17. Sulphonated asphalt Technical Services
18. Drilling detergent Technical Services
19. Pre-Gelatinized Starch (PGS) Technical Services
20. Micronised Calcium Chloride Technical Services
21. Limestone Powder Technical Services
22. Clay Hydration Suppressant (Polyamine) Technical Services
23. HSD for Onshore Assets / Basins Technical Services
24. Ammonium Biflouride Technical Services
25. Acetic Acid Technical Services
26. Water Foamer Technical Services
27. Surfactant Technical Services
28. Acid Corrosion Inhibitor (ACI)- Grade II Technical Services
29. EDTA di-Sodium salt Technical Services
30. Citric acid Technical Services
31. Soda Ash Technical Services
32. Ethylene Glycol Mono Butyl Ether (EGMBE) Technical Services

18
Sl. Item Name Nodal Tech Agency
No.
33. Hydrated Lime Technical Services
34. Hydroxy Ethyl Cellulose (HEC) Technical Services
35. Bactericide Aldehyde Technical Services
36. Gelling Agent Grade- II Technical Services
37. Ammonium Persulphate Technical Services
38. Caustic Soda (Sodium Hydroxide) Technical Services
39. Sodium Gluconate Technical Services
40. Non-Emulsifier Technical Services
41. Triethanol Amine Technical Services
42. Methyl Diethanol Amine Technical Services
43. Borax Technical Services
44. Sodium Thiosulphate Technical Services
45. Fast Hydrating Guargam Technical Services
46. Ammonium Chloride Technical Services
47. Isopropyl Alcohol Technical Services
48. Sodium Bromate Technical Services
49. Proppants of all types (HSP/ISP/LHP) Technical Services
50. Cement Additives Technical Services
51. Potassium Formate Technical Services
52. Hollow Glass Spheres Technical Services
53. Monoethylene Glycol (MEG) Technical Services
54. Triethylene Glycol (TEG) Technical Services
55. Demulsifier Technical Services
56. Liquid Nitrogen Technical Services
57. Polyol Commercial Grade-1, Technical Services
Polyol Commercial Grade-2
58. Xylene Technical Services
59. Toluene Technical Services
60. Heliox Gas for Offshore Asset Integrity Group
61. HF-HSD for Offshore OLG

19
Sl. Item Name Nodal Tech Agency
No.
62. Any Chemical, Oil and Lubes above Rs. 1 crore based Technical
on sanction value for the requirement of the concerned Services/NTA
work-center (even if not covered in the above list in concerned (as
this category) applicable for the item)

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(2.2) Drilling Items and Tubulars, Capital Items, Surface & Other Material under
Centralized Procurement (for Offshore & Onshore)
Procurement Group: Central Materials Procurement Group
Procurement Segment: Drilling Items and Tubulars / Capital Items/ Surface & Other
Material

Sl. Item Name Nodal Tech


No. Agency

1. Drill Pipes (all sizes & grades) Technical


Services
2. Heavy wt. drill pipes (all sizes & grades) Technical
Services
3. Casing Pipes (all grades & sizes) Technical
Services
4. Drill collars (of all sizes) Technical
Services
5. Production tubings (of all sizes) Technical
Services
6. Well heads of all pressure rating & sizes Technical
(including H2S) Services
7. X-mas trees of all pressure rating & sizes Technical
(including H2S) Services
8. Line pipes (of all sizes) Technical
Services
9. Technical
Gas Lift Valves & Mandrels
Services
10. Kits & Liveries (i.e. Cotton Overall, Fire Technical
Retardant Overall, Safety Helmet, Safety Services (with
Goggles, Ear Muff and Ear Plug) Corporate
Administration &
HSE)
11. Fire related items, Technical
 All types of Fire Tenders. Services (with
 Fire Pumps (Trailer, Skid and Portable Corporate Fire
Pumps) Services)
 Portable/ Trolley Mounted Monitors which
are used by Fire Services only.
 Self-contained Breathing Apparatus
(SCBA)
 Fire Suits (Proximity, Approach and Entry
Suits)

21
Sl. Item Name Nodal Tech
No. Agency

 Fire Fighting Chemicals (AFFF 3%, AFFF


6% & DCP Type A&B)
 Fire Extinguishers
 Compressed Air Foam (CAF)
 Turbine Based Water Mist System
12. Items related to Reservoir Field Services Technical
Services

Liner Hanger Technical


13. Services

14. Conventional drill bits Technical


Services

15. Drill hoses (all rating & sizes) Technical


Services

16. Floating equipment Technical


Services

17. Technical
Kelly all types Services

Technical
18. Stabilizers Services

19. Premium Bits on consignment Basis OFSG

20. Technical
Onland Drilling rigs (Procurement)
Services
21. Technical
Onland Work over rigs (Procurement)
Services
22. Packers Technical
Services
23. Wireless Winches Technical
Services
24. Fishing tools & equipment for Drilling & Well Technical
Services Services

22
Sl. Item Name Nodal Tech
No. Agency

25. Technical
Mud Pumps
Services
26. Technical
BOPs
Services
27. Technical
BOP Accumulator Units
Services
28. Liquid Nitrogen / Acid / Frac Pumper / Technical
Blender/Data Van/ Chemical Additive System Services
(CAS) /Proppant Carrier/ MPPU / Hydration
Unit
29. Technical
CTU
Services
30. Technical
Hot Oiler Units
Services
31. Technical
Cementing Units & Batch Mixers
Services
32. Technical
WSS Units
Services
33. Technical
Procurement of Mud Handling Equipment
Services
34. Technical
Procurement of Non-Magnetic Drill Collar
Services
35. Procurement of Down-hole tool/mud motor of Technical
all sizes Services
36. Technical
Procurement of Drill pipe spinner
Services
37. Technical
Choke & Kill Manifold
Services
38. BOP CUP tester, Test Plug and other well Technical
head accessories Services
39. Technical
HP Gate valve (all sizes)
Services
40. All Handing Tools like slips, Elevators, Technical
Elevator Link, power Tongs, safety clamps, Services
etc.
41. Technical
Hi Tech Drilling tools
Services

23
Sl. Item Name Nodal Tech
No. Agency

42. Technical
Casing spool, Auto Driller
Services
43. Hydraulic Casing / Tubing Tong with power Technical
unit Services
44. Inside BOP, Lower Kelly cock, upper Kelly Technical
cock / FOSV, Quick shutoff valves etc. Services
45. Technical
Kelly spinner
Services
46. Technical
Hydraulic Torque Wrench
Services
47. Technical
Master Bush with Inserts of all sizes
Services
48. Technical
Capping Accessories
Services
49. Technical
Stabilizer mandrel and sleeve
Services
50. Technical
Core barrel
Services
51. Technical
CUL Bushing
Services
52. Technical
Wire Rope, Wire Rope Snake and pulley
Services
53. Technical
Casing Line
Services
54. Technical
Generator set (Above 250 KVA)
Services
55. Technical
Crown Block, Travelling Block & Hook
Services
56. Technical
Diesel Engines
Services
57. Technical
Independent Rotary Drive
Services
58. Technical
Air Winch
Services
59. Technical
Rotary table
Services

24
Sl. Item Name Nodal Tech
No. Agency

60. Technical
Rig Mast
Services
61. Technical
Mobile air compressor
Services
62. Technical
Kelly swivel
Services
63. Technical
Torque converter / Allison Transmission
Services
64. Technical
Twin Stop safety device
Services
65. Technical
Mobile Welding Set
Services
66. Technical
Draw Works
Services
67. Technical
Top Drive
Services
68. Technical
Iron Roughneck
Services
69. Technical
Hydraulic Cathead
Services
70. Technical
Vertical Pipe Handler
Services
71. Technical
Hydraulic Catwalk
Services
72. Technical
Mast Raising Hydraulic Cylinder
Services
73. Technical
Air Utility House with Compressor and Drier
Services
74. Technical
Brake Cooling System
Services
75. Auxiliary / Emergency Braking System as Technical
Disc Brake, ECB Services
76. Technical
Hydraulic Rotary Table
Services
77. Technical
AC & DC Module
Services

25
Sl. Item Name Nodal Tech
No. Agency

78. Technical
Eddy Current Brake
Services
79. Technical
VFD Drives for Motor above 100 HP
Services
80. Technical
AC / DC Motor above 100 HP
Services
81. Technical
Electrical Air Compressor
Services
82. Technical
Alternator
Services
83. Technical
Treating Iron (Chiksan)
Services
84. Technical
Wireline BOP and wireline tools
Services
85. Technical
Coil Tubing Downhole tools
Services
86. Technical
Coil Tubing Reels
Services
87. Technical
Liquid Nitrogen tanks
Services
88. Technical
Tyres / Tubes/ Flaps of all sizes
Services
89. Technical
GP Screens
Services
90. Bunk House Technical
Services
91. Centrifugal Pumps Technical
Services
92. SRP Units Technical
Services
93. Hydraulically Actuated Artificial Lifting Units Technical
Services
94. Mud Tanks Technical
Services
95. Electronic Time Cycle Controller (ETCC) & Technical
Diaphragm Motor Valve (DMV) Services

26
Sl. Item Name Nodal Tech
No. Agency

96. Manilla Rope Technical


Services
97. Wire Rope sling Technical
Services
98. Centralizers Technical
Services
99. SRP accessories of all types (like Sucker Technical
Rods, Polished rods,etc.) Services
100. PT-TT (Pressure Transmitters Temperature
Transmitters), Differential Pressure
Production
Transmitters (DPT)/ Level Transmitters used
Services
at Offshore Process Platforms / Well Head
Platform/ Plants/ Surface Installations
101. Life Boats Technical
Services (with
Corporate HSE)
102. Life Rafts Technical
Services (with
Corporate HSE)
103. Life Buoys and Remote Controlled Life Buoys Technical
Services (with
Corporate HSE)
104. Control Valves and Actuator for for of all class
for line size ≥ 6" and 300 Class and above for
Production
line size = 4" used at Offshore Process
Services
Platforms / Well Head Platform/ Plants/
Surface Installations

105. Flow Lines Production


Services

106. Production
Water Injection Pump of ≥ 100 HP
Services

107. Sea Water Lift Pump for Offshore Platforms of Production


≥ 200 HP Services

108. Booster/ Sea Water booster Pump for Offshore Production


Platforms of ≥ 200 HP Services

27
Sl. Item Name Nodal Tech
No. Agency

109. Vacuum Pumps for Water injection System at Production


Offshore Platform of ≥ 200 HP Services

110. Production
Main Oil Line Pump of ≥ 100 HP
Services

111. Production
Crude Transfer Pumps of ≥ 100 HP
Services

112. Production
Cooling water Pump of ≥ 100 HP
Services

113. Production
Glycol Pumps of ≥ 50 HP
Services

114. Production
Hot Oil Pump of ≥ 50 HP
Services

115. Production
Propane Gas Compressor
Services

116. Production
Lean Gas Compressor
Services

117. Production
Flare Gas Recovery Compressor (FGRC)
Services

118. Production
Nitrogen Compressor
Services

119. Production
Turbo Expander Compressor
Services

120. Production
Process Compressor ≥ 100 HP
Services

121. Production
Fire Water Pump ≥ 100 HP
Services

28
Sl. Item Name Nodal Tech
No. Agency

122. Heat Exchanger with minimum capacity of 1 Production


million Kcal / Hr Services

123. Process and Utility Pumps (like feed pumps,


Production
despatch pumps, transfer pumps, circulation
Services
pumps, recycle pumps etc.) ≥ 100 HP

124. Production
Boiler Feed Pumps
Services

125. Production
Vaporizer Pumps
Services

126. Instrument / Utility Air Compressor of ≥ 200


CFM used at Offshore Process Platforms / Production
Well Head Platform/ Plants/ Surface Services
Installations

127. Portable / Mobile Air Compressors of ≥ 100


CFM used at Offshore Process Platforms / Production
Well Head Platform/ Plants/ Surface Services
Installations

128. Cooling Tower Fans / Over Head Cooling Production


Fans/ Fin Fans for process applications Services

129. Production
Air Blowers of ≥ 5000 CFM
Services

130. Production
Locomotive Rail Engine Services

131. Production
Chlorinators Services

132. Production
Ultrasonic Flowmeters for line size ≥ 6 "
Services

133. Production
Mass Flow meters for line size ≥ 6 "
Services

29
Sl. Item Name Nodal Tech
No. Agency

Manual /Motor Operated Valves (Gate, Globe,


Butterfly etc.) for of all class for line size ≥ 6"
Production
and 300 Class and above for line size = 4"
134. Services
used at Offshore Process Platforms / Well
Head Platform/ Plants/ Surface Installations

135. Production
PSVs for line size ≥ 2".
Services

136. DCP Skid > 50 kg capacity used at Offshore


Production
Process Platforms / Well Head Platform/
Services
Plants/ Surface Installations1

137. Any Material above Rs. 1 crore based on Technical


sanction value for the requirement of the Services,
concerned work-center (even if not covered in Offshore
the list in this category above) Services Group,
Production
Services, (as
applicable for
item concerned)

(3) Drilling & Well related Services under Centralized Procurement


Procurement Group: Central Drilling & Well Services Procurement Group
Procurement Segment: Offshore Drilling/Workover, Onshore Drilling/Workover

Sl. Item Name Nodal Tech


No. Agency

1. Hiring of Offshore rigs and its allied services OFSG


2. Hiring of Bundled Services OFSG
3. Hiring of Directional Drilling Tools/ Services for Offshore OFSG
4. Hiring of Special technology Services for Offshore OFSG
Drilling / Well Services (Whipstock, Window Milling,
Fishing, Casing Milling, etc.)

30
Sl. Item Name Nodal Tech
No. Agency

5. Hiring of Well Engineering & Completion Services for OFSG


Offshore Drilling
6. Hiring of Well Stimulation Vessels OFSG
7. Hiring of O&M for Well Stimulation Vessels OFSG
8. Hiring of various types of Drilling Fluid / Mud Chemicals OFSG
Services for Offshore
9. Hiring of Cementing Services/units for Offshore OFSG
10. Hiring of Drilling Rigs for Onshore ONSG
11. Hiring of Work Over Rigs for Onshore Corp. Well
Services
12. Hiring of Directional Drilling Tools and Services for ONSG
Onshore
13. Hiring of Services for O&M Contracts for Drilling Rigs for ONSG
Onshore
14. Hiring of Services for O&M Contracts for Work Over Corp. Well
Rigs for Onshore Services
15. Hiring of special technology Services for Onshore ONSG
16. Hiring of NDT Services/ Inspection of Tubulars for ONSG
Onshore
17. Hiring of Services for Repair/Rethreading of Tubulars ONSG
for Onshore
18. Hiring of Cementing Services under Integrated Rig ONSG
Hiring/Stand-alone basis for Onshore
19. Hiring of Cement Bulk Handling Units ONSG
20. Hiring of Mobile Bulk Carrier Units ONSG
21. Hiring of Mobile Bulk Cementing Unit ONSG
22. Any Drilling & Workover related Services for offshore or Offshore
onshore, above Rs. 1 crore annual based on sanction Services Group,
value for the requirement of the concerned work-center Onshore
(even if service not covered in the list in this category Services Group,
above) Corp. Well
Services (as
applicable for
services
concerned)

31
(4.0) Logistics, Production and other related Services under Centralized
Procurement
(4.1) Logistics related Services under Centralized Procurement
Procurement Group: Central Logistics and Production Services Procurement Group
Procurement Segment: Offshore Logistics

Sl. Item Name Nodal Tech


No. Agency

Hiring of Air Logistics Services (Helicopters, etc.) Offshore


1. and its allied services Logistics Group
Hiring of Marine Logistics Services (C/H of various Offshore
2. types of Vessels, AHTS, boats, tankers etc.) and its Logistics Group
allied services
Offshore Asset
Integrity
Management
3. Hiring of Services for IMR group
Group (Offshore
Maintenance
Group)
Technical
4. All India Material Transport Contract Services
Air Consolidation Services Technical
5.
Services
Hiring of Services for Offshore Pipeline Group such Offshore Asset
as, Integrity
 Hiring of Testing/ Inspection agencies for Offshore Management
Asset Integrity Group (Offshore
 Pigging of Offshore pipe line Maintenance
 Integrity Assessment of Offshore pipe line Group)
6.  In-line Inspection of Pipe Line
 Drone services for Onshore portion of Offshore
pipe line
 New technology induction in Pipe line Health
Management
 Hiring of MSVs
 Pipe Span correction
7. Any Services pertaining to Offshore Logistics or Offshore
Offshore IMR / Pipeline Group, above Rs. 1 crore Logistics Group,

32
Sl. Item Name Nodal Tech
No. Agency

annual value based on sanction value for the Offshore Asset


requirement of the concerned work-center (even if Integrity
service not covered in the list in this category above) Management
Group (as
applicable for
services
concerned)

(4.2) Production-related and other services/tenders under Centralized


Procurement
Procurement Group: Central Logistics and Production Services Procurement Group
Procurement Segment: Production-related & others

Sl. No. Item Name Nodal Tech Agency

Hiring of Gas Compressor Services Production Services


1.
(GCP/GDU/DPD, etc.)
2. Hiring of Coil Tubing Units Production Services
3. Hiring of Hot Oil Circulating Units Production Services
4. Hiring of Scrapping Winches Production Services
5. Hiring of SRP Units Production Services
6. Hiring of Dosing Pumps Production Services
7. Hiring of Mobile Pumping Unit Production Services
8. Hiring of Nitrogen Pumping Unit Production Services
9. Hiring of Acid Pumping Unit Production Services
10. Hiring of Steaming Units Production Services
Hiring of ETP Services Production Services /
11. ONSG (for Drilling Service
Requirement)
Tenders for Production Enhancement Production & Development
12. Contracts for Nomination Fields / Wells of Directorate (P&DD)
ONGC

33
Sl. No. Item Name Nodal Tech Agency

13. Any Production related Services pertaining Production Services/


to Offshore Assets, Onshore Assets, Plants Production Directorate (as
and Basins above Rs. 1 crore annual value applicable for services
based on sanction value for the requirement concerned)
of the concerned work-center (even if service
not covered in the list in this category above)

(5.0) Exploration item/services under Centralized Procurement


(5.1) Exploration Services Segment
Procurement Group: Central Exploration Services Procurement Group
Procurement Segment: Exploration Services Segment

Sl. Item Name Nodal Tech Agency


No.
1. Hiring of Wire Line Logging, Logging while Logging Services
Drilling, Well Shuttle, Perforation and TCP-DST
Services along with Equipment
2. Procurement & AMC of Logging Logging Services
Units/tools/Logging Mast along with Equipment
etc.
3. Upgradation of Logging units & equipment Logging Services
4. Perforation Material and Logging Cables Logging Services
5. Hiring of Mud Logging Services Office of Chief
Operations Geology
(COG)
6. Corporate Geophysical
Geophone strings
Services
7. Exploration related Services Corporate Geophysical
(i) Data Acquisition & Processing Services
(ii) Seismic Job Services (SJS) & Shot Hole
Drilling Services (SHD)
8. Cable telemetry Seismic Data Acquisition Geophysical Services
System
9. Cable free Node Based Seismic Data Geophysical Services
Acquisition System

34
Sl. Item Name Nodal Tech Agency
No.
10. Up-hole/ Shallow Refraction Units Geophysical Services
11. VSP data acquisition system Geophysical Services
12. GNSS/GPS survey Instrument and accessories Geophysical Services
13. Data acquisition shooting system Geophysical Services
14. Vibrators Geophysical Services
15. National Seismic Program (NSP) projects Geophysical Services
16. Any Exploration related item/Services above Rs. Geophysical Services,
1 crore annual value based on sanction value Corporate Logging
for the requirement of the concerned work- Services, Office of Chief
center (even if item/service not covered in the Operations Geology (as
list in this category above) applicable for
items/services
concerned)

(5.2) Exploration Tech. and Software under Centralized Procurement


Procurement Group: Central Exploration Services Procurement Group
Procurement Segment: Exploration Tech., Software and Services

Sl. Item Name Nodal Tech Agency


No.
1 Procurement and AMC of Data Processing GEOPIC
Workstations/ Software
2 Procurement of Exploration related Hardware & GEOPIC
Software and related AMC
3. Any Exploration related item/Services above Rs. GEOPIC
1 crore annual value based on sanction value for
the requirement of the concerned work-center
(even if item/service not covered in the list in this
category above)

(6) Digital IT Items under Centralized Procurement

Procurement Group: Central Digital IT Procurement Group


Procurement Segment: IT Capex and related services

35
Note: These include both OEM/OES (Only for finalization of Rate Contracts) and non-
OEM/OES purchases). However, it excludes nomination cases.

S Nodal Tech
Name of Items
No. Agency
Consultancy Services for Digital/IT Implementation/ Corporate
1
Transformation projects (>1 Cr) Infocom
System Integration Services (Development/ Maintenance) Corporate
2
for implementation of new technology/IT (> 1 Cr) Infocom
Corporate
3 Active Directories
Infocom
4 Systems/Infrastructure
Video Conferencing System – New/ Augmentation Corporate
4.1
(Repairs & Maintenance to be handled at work centres) Infocom
On-Premised IT Infrastructure Development / Upgradation Corporate
4.2
(Capex Model/ IaaS Model/ Pay per use model) (>1 Cr) Infocom
VoIP Exchange Based EPABX Procurement (with or Corporate
4.3
without AMC) Infocom
Corporate
4.4 Digital/Reporting Platforms for Information Systems
Infocom
Video Analytics System Development/ Upgradation at Corporate
4.5
Plants/Assets Infocom
Corporate
4.6 RTOC Setup /Upgradation
Infocom
Corporate
4.7 Corporate Visualization Centre Setup/Upgradation
Infocom
LAN/WAN Network and induction of new technology
Corporate
4.8 related to technology –
Infocom
Expansion/Augmentation/Upgradation
Corporate
4.9 Any other LSTK Projects related to IT/Digital (> 2 Cr)
Infocom
5 Software/Applications
DISHA - O&M/ RHEL Support/ IBM Software Subscription Corporate
5.1
Renewal/Rate Contract/ Hardware Upgrade, etc. Infocom
SAP – O&M/AMC/Enterprise Management Support/ Corporate
5.2
License Renewal/Rate Contract Infocom
Corporate
5.3 Microsoft – Licenses/ Renewal
Infocom

36
S Nodal Tech
Name of Items
No. Agency
Video Conferencing - Software Licenses & Renewal E.g. Corporate
5.4
– Zoom, Webex, etc. Infocom
Purchase of Licenses for Software/Applications (with or
without AMC/Support, etc.) (Total Spend under one
Corporate
5.5 software license provider is > 1 Cr)
Infocom
 All Subsequent renewal of AMC/Support to be
centrally procured
6 Services
Corporate
6.1 Comprehensive AMC for Infocom Data Centers
Infocom
IT Infrastructure Maintenance & Management Services (IT Corporate
6.2
MMS) Infocom
Corporate
6.3 Facility Management Services (> 1 Cr)
Infocom
Corporate
7 Rate Contracts (Multi Locations)
Infocom
Printer Cartridges/Toner (Rate Contract) for multiple OEM Corporate
7.1
Models Infocom
Corporate
7.2 RAM (Rate Contracts) for Desktops/ Laptops/ Workstations
Infocom
A-3 Printer/Scanners (Rate Contract) for multiple OEM Corporate
7.3
Models Infocom
Corporate
7.4 Rack Servers/ Workstations Purchase
Infocom
Corporate
7.5 Computers/Laptops/Desktops Purchase
Infocom
Data Centre Refresh/Upgradation/New Corporate
8
Development/Revamp Infocom
Further, any other goods/services related to Digital IT
and procurement of IT related items above Rs. 1 crore Corporate
9
based on annual sanction value pertaining to Infocom. Infocom

(7) RC & Empanelment under Centralized Procurement


Procurement Group: Central RC & Empanelment Procurement Group

37
Procurement Segment: Rate Contract, Empanelment

Sl. Item Name Nodal Tech Agency


No.
1 OEM/OES spares and Services including Technical Services
refurbishment / revamping of equipment from
OEM/OES
2 Empanelment of TPI Services Technical Services
3. Empanelment of Pharmacy shops Office of Chief Medical
Services
4. Empanelment Rate contract for Furniture & Technical Services
Air Conditioners

(8) Civil & LSTK (Onshore) Tenders under Centralized Procurement

Procurement Group: Central Civil Works & Onshore LSTK Procurement Group
Nodal Tech Agency: Corporate Infrastructure Group (Office of Chief Infrastructure),
OGEP

Sl. Item Name Nodal Tech Agency


No.
1 Corporate Infrastructure Group
Works/Civil tenders above ₹10 Cr
(Office of Chief Infrastructure)
2 All LSTK tenders above ₹10 Crore OGEP
for Onshore
3 All LSTK tenders above ₹2 Crore for Production Services
Onshore (currently being done by
FEG/equivalent groups at
assets/plants and not covered under
the Scope of OGEP)
4 All cross-functional LSTK tenders Respective service NTA such as
above ₹2 Crore for Onshore Onshore Drilling Services, Asset
Integrity Group, etc.

Indicative List of items that would fall under LSTK NTA of OGEP is enclosed at
Appendix-A below.

38
Appendix-A

Indicative List of items that would fall under LSTK NTA of OGEP

Sr. Item Nodal Tech


Agency
DEVELOPMENT
1. Fabrication & Installation Project for (CPP/LQ/FPSO) with OGEP
facilities
2. Restoration/ Inauguration of Gas Terminals OGEP
3. FPSO - Hiring/Procurement OGEP
4. MOPU - Hiring/Procurement/ Conversion of rigs OGEP
5. Creation of surface facilities for Onshore installations – OGEP
GGS
6. Creation of surface facilities for Onshore installations – OGEP
GCS
7. Creation of surface facilities for Onshore installations – ETP OGEP
8. Creation of surface facilities for Onshore installations – OGEP
WTP
9. Creation of surface facilities for Onshore installations – OGEP
GCP
10. Creation of surface facilities for Onshore installations – OGEP
GDU
11. Creation of surface facilities for Onshore installations – OGEP
DPDU
12. Creation of surface facilities for Onshore installations – Air OGEP
Injection facilities
13. Creation of surface facilities for Onshore installations – OGEP
Water Injection Plants
14. LPG bullets/Storage Tanks Construction OGEP
15. Crude oil/effluent storage Tanks Construction OGEP
16. RE/Green Projects - Engg., Design, Const OGEP
(Solar/Wind/BESS)
17. Cross Country Pipeline (Gas/Fuel/material) Development OGEP
projects
18. Onshore Terminal Development OGEP
19. Enhanced Oil Recovery Projects/ Polymer Flooding Project OGEP

39
Sr. Item Nodal Tech
Agency
20. Clamp-on projects OGEP
21. Pipe Lay projects OGEP
22. Demountable Flare stack projects
23. Fabrication & Installation Project for Well Head Platform OGEP
24. Flare gas recovery Projects OGEP
25. Produced water treatment Plants OGEP
26. Design, supply, laying, RTP pipelines for Onshore Assets OGEP
27. Setting of Emergency response center OGEP
28. Conversion of rigs into AWB (Accommodation Work OGEP
Barges)
29. New Installation / replacement of existing SBMs OGEP
30. Addition of new gas compressors / power generation OGEP
packages along with deck extension / strengthening works
requiring engineering.
REVAMP/UPGRADATION/REPLACEMENT
31. Process/Well Head platform facilities Revamp projects OGEP
32. Barge bumper, Boat landing & Riser protection replacement OGEP
involving engineering
33. Cyclone Rehabilitation Projects OGEP
34. Up-gradation of fire water protection systems OGEP
35. Revamping of Cogen, Substation, Control room OGEP
36. Replacement Project of Bridges / helideck OGEP
37. Replacement Project of WHPs as life extension works. OGEP
38. Revamping of Surface facilities at EPS/GGS/GCP OGEP
39. Complete revamp of living quarters (offshore platforms) OGEP
(excluding part equipment replacements of LQ)
40. Gas Metering Station Upgradation/Development (Non- OGEP
OEM)
41. Complete Pipeline Replacement (involving engg., supply OGEP
and services)
42. Upgradation of Multiple interface systems at the asset OGEP
involving component of engg., procurement, supply and
installation (non-OEM) (Onshore)
43. Revamping of Produced Water Conditioning System OGEP
44. Redevelopment Projects involving significant engineering OGEP
ENGINEERING/PROJECT/SPECIALIZED SERVICES

40
Sr. Item Nodal Tech
Agency
45. PMC/DEC/TPIA Hiring of Projects under the purview of OGEP
OGEP
46. Creation of P&IDs for onshore installations OGEP
47. Hiring of services for Pre engineering surveys ROU OGEP
acquisition & statutory permission/ clearance for projects in
Onshore assets
48. Hiring of specialized vessels such as Survey/ Geotechnical/ OGEP
Derrick / pipelay barges
49. T&I contracts OGEP
50. Hiring of services for health and integrity assessment of OGEP
pipelines (Onshore pipelines)
51. Hiring of Corrosion monitoring services for pipelines in OGEP
Onshore assets
52. Long term services for integrated maintenance of pipeline OGEP
at Onshore assets
DIGITAL/IT (FOR SURFACE INSTALLATIONS)
53. Smart plants OGEP
54. IOPS (Integrated Operations) OGEP
55. Digital twin OGEP
56. Implementation of web based PIMS for onshore pipelines OGEP
DECOMMISSIONING
57. Decommissioning of WHP/ Processing platforms OGEP
58. Decommissioning of Existing SBMs OGEP
PLATFORM PROJECTS INVOLVING HIRING OF
BARGES
59. Platform Makeover Projects (involving replacement tasks) OGEP
60. Protective Coating of Wellhead Platforms OGEP

Other items that are not covered in above list would also be covered provided (any of
the following condition)
 If such items are executed/ implemented by works department of OGEP.
 If there is significant engineering and service component (more than 20% of the
total value)
 If there is a LSTK activity that involves marine spread/vessel/barges/etc.

41
(MM/55/2020 dated 11.03.2020)
1.4 The Corporate Materials Management set up with Director – I/c MM is responsible
for the following:-.

1.4.1 All centralized Procurement cases for items indicated under para 1.3.1 and policy
matters including liaison with the Govt.

1.4.2 All items indicated under para 1.3.1 are procured centrally by Corporate MM,
Delhi. Requirement is to be raised by respective Asset/Basin/Services which will
be consolidated at Corporate MM for tendering purposes.

1.4.3 Providing superintendence to the Materials setup at various work centers with
regard to different functions of Materials Management for example Inventory
Control, Disposal, Codification, Standardisation of specifications, and Stock
Verification etc.

1.5 The above functions are to be discharged by personnel of Materials Management


discipline who will be so allocated to each work centre and Corporate MM, Delhi.

Various powers indicated in this manual shall stand updated in accordance with
the revisions / amendments carried out to the respective provisions of BDP (from
time to time). In case of any conflict between the provisions of this Manual and the
provisions of BDP, provisions contained under BDP shall prevail, unless
specifically clarified by Chief MM Services. Further, in order to adhere to the
provisions of BDP, while processing the cases to meet various type of
requirements at Work Centers, It should be ensured that the case is processed by
concerned department as per the provisions of BDP.

42
(MM/10/2016 dated 23.03.2016)
(MM/112/2023 dated 30.11.2023)
(MM/125/2024 dated 23.04.2024)
1.6 Provisions of Materials Management Manual are approved by the Management
Committee of Directors (MCoD)/ ‘Management Committee of Directors –
Procurement (MCoDP)’ and appraised to ONGC Board. Therefore, any deviation
from the prescribed policy guidelines or norms on Materials Management will
require approval from MCoD / MCoDP through Head-MIND. Such approvals shall
be put up to ONGC Board for its appraisal on half yearly basis by PMC. To enable
PMC to compile the deviation from the prescribed policy guidelines or norms on
Integrated MM Manual approved by MCoD / MCoDP , concerned work centres
shall immediately convey the approval obtained by them from MCoD / MCoDP
cell for taking deviation from the prescribed policy guidelines or norms on
Integrated MM Manual.

1.7 Modifications in the Manual


(MM/113/2023 dated 08.12.2023)
1.7.1 For any modifications sought in the manual, a request should be sent to the PMC
through concerned key executive citing the changes sought, reason/justification
for the changes and any accompanying documents to substantiate the
suggestion. The responsibility for taking prudent decisions against individual
cases lie with the CPA (based on recommendations of BEC Formulation
Committee/Procurement Evaluation Committee/ proposal of MM
Department/Tender Processing Group, wherever applicable).Therefore, advice
on case to case basis need not be sought from Chief-MM/PMC and decisions
should be taken within the prevalent policy guidelines/procedures and in
accordance with the provisions of the tender conditions. However, in case any
existing procedures/guidelines require modifications, same can be referred to
Chief-MM/PMC along with specific recommendations of the Work Centre but
such requests should not contain any deadline for conveying the advice/issuance
of modifications.
(MM/112/2023 dated 30.11.2023)
(MM/125/2024 dated 23.04.2024)
1.7.2 A Multi-Disciplinary Team, if required, with representatives from PMC, MM,
F&A, concerned user departments and legal shall evaluate the requirement
and recommend changes to manual to be sent to MCoD/MCoDP for approval.
The representatives should be minimum E-6 level. However, Head MIND shall
be empowered to nominate any member even below E-6 level to be a part of
the multi-disciplinary team.

1.7.3 In addition to requests from work centers, MCoDP may suo moto feel the need
of policy modification from time to time and may take such decision. Such
decision from MCoDP will be communicated to PMC, for amendment into the
manual.

43
1.7.4 Any modification in MM manual/tender document shall be uploaded on the
MM website.

1.7.5 Any urgent changes required in the manual on account of regulatory changes
etc shall be immediately incorporated in the manual and published on the MM
website by PMC, with prior approval of Director I/c MM, Director (Finance).

1.7.6 Policy changes will be communicated as amendment in the MM manual.


Separate office orders/circulars shall only be released to mention any
guidelines/observations which are not policy changes and thus don’t require
MM manual/tender document modification. The signed copies of these office
orders (in PDF format) shall be invariably notified to all concerned through MM
website.

1.7.7 A holistic review of the entire manual shall take place every 5 years.

(MM/26/2017 dated 21.06.2017)


1.7.8 All concerned must follow/comply with all policy decisions uploaded by PMC
on MM website up to two working days prior to bid closing date (allowing one
full day for approvals if any to be taken for extensions). Further, if required, bid
closing date can be extended suitably.

1.8 Classification of Material

1.8.1 The purchase can be made with advantage on the results of classification of
material and stock levels. It is, therefore essential that either of these points is
given treatment before passing on to the purchase procedure

1.8.2 For procurement/accounting, the materials may be classified into following


categories:-

Stores: It is a material, which is consumed during the process or has life less
than one year or part of an item/ capital asset or chemicals or commodity or any
unprocessed or partially processed good.

Spares: Spare is a component forming part of equipment and does not function
on its own unless it is fitted to the specific equipment it is meant for.

Capital Items: All items costing Rs.25, 000/- or more and with a life of more than
one year are categorised as “Capital Items". Items costing less than Rs.25,000/-
which have a life of more than one year and can be regarded as complete units
in themselves (e.g. small compressors, pumps, electrical motors, welding
sets, electrical testing instruments etc.) are also to be categorised as
"Capital Items".

1.8.3 Proprietary Materials and Non-Proprietary Materials

For procurement the materials may be classified into following categories:

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a. Proprietary Materials
An item is “Proprietary”, if that item is made or marketed by a person or
persons having the exclusive right to manufacturer, and to sell it.
Hence, the equipment(capital)/ spares/ stores/ softwares/ services/
patented drugs whose make and model are only from a named
manufacturer and no other make and model is acceptable as substitute for
technical reasons, then they are Proprietary Materials.
b. Non-Proprietary Materials
Non-Proprietary materials are those which are manufactured by many
firms.

1.8.4 Insurance Spares

1.8.4.1 Under the broad categorization of "Spares", certain items will be identified
as "Insurance spares". Insurance spares are spares with expected life of
the components almost equal to the life of the equipment. Normally there
will be no consumption of this item throughout the life of the equipment
except when there is an unforeseen event. The quantity shall be restricted
to minimum quantity that may be required during operations.

1.8.4.1.1 Insurance spares, against each equipment, will be identified by the user
department and Chief - Technical services will approve the list of such insurance
spares.

1.8.4.1.2 At the time of procurement of spares, the system will indicate in the PR that the
spare has been identified as an insurance spare

1.8.5 Role and responsibilities of MRP controller

1.8.5.1 MRP (Material Requirement Planning) Controller is the planner for Material
Procurement and Controller of Inventory. This dual role is assigned to one
person to facilitate inventory control by proper planning at the time of
procurement. Typically this role is to be performed by executives looking
after Material Planning and procurement.

1.8.5.2 The MRP Controller prior to release of indent shall perform the following
checks:

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1. View Inventory position of the material for which PR is created, in his own
work center and across all work centers in ONGC. In case the material is
available in his own CRC entities (i.e. Assets, Basins, Plants & Institutes etc.)
and is usable then the quantity to be purchased to be reduced. In case the
material is not usable, but reflected in the inventory, immediate steps to be
taken by user department to remove the material from inventory by writing off
and move to disposal location. If the material is available at other CRC entities,
then a judicious decision is to be taken whether material should be purchased
afresh or it can be made available from other locations of ONGC.

The stocks and all open purchase orders for the material can be seen for stock
overview in ICE system.

2. While approving the indents, he shall see the activity plans for the material
in the concerned work center and shall convince himself that the materials will
be consumed by the indenters in a reasonable period of time and the purchase
will not result in build-up of inventory. He can also take a decision to approve
the indents based on the past consumption data in the system.

Past consumption data of the material can be viewed in the PR print layout.

3. MRP controller has to ensure that all the requirements of the work centre
are consolidated so that purchasing process time is reduced and all quantity
discounts are available

4. If the alternate material exists for the materials which are being purchased,
then he shall check such materials also, keeping all the above points in mind.

5. For procurement of spares against IMPETUS rate contracts MRP


controller shall exercise due diligence and opt for staggered delivery
wherever possible to prevent built up of inventory.

1.9 Standard Tender Documents

1.9.1 Standard tender documents for the following categories have been created
which should be used for procurement along with this manual:

1.9.1.1 Procurement of Spares to be used for OEM/OES Spares and OEM/OES Services
procurement where ONGC has no option but to procure the Spare/Service from
one specific OEM/OES.

1.9.1.2 Procurement of Goods (National Competitive Bidding) and Procurement of Goods


(International Competitive Bidding) to be used for Goods procurement under
Indigenous and ICB tenders.

1.9.1.3 Hiring of Vessels, Charter Hire of Rigs, Hiring of Services (Facility Management),
Hiring of Services (Consultancy) to be used for respective types of procurement.

46
1.9.1.4 Tender Document for Civil to be used for Civil/Electrical and other related
works

1.9.1.5 Tender document for LSTK to be used for LSTK projects

1.9.1.6 Hiring of Services tender document to be used for hiring of oil field services
& other services.

1.10 Abbreviations
(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
(MM/125/2024 dated 23.04.2024)
The following abbreviations have been used in the manual:

1.10.1 AWB – Air Way Bill


1.10.2 BDP – Book of Delegated powers
1.10.3 BEC – Bid evaluation criterion
1.10.4 BQ – Budgetary quote
1.10.5 C&F – Clearing & Forwarding
CFR – Cost & Freight

1.10.6 CMD – Chairman cum Managing Director


1.10.7 CA – Competent Authority
1.10.8 CI – Cost Index
1.10.9 CIDC – Construction Industry Development Council
1.10.10 CIF – Cost, Insurance and freight
1.10.11 CPA – Competent purchase authority
1.10.12 CPI – Consumer price index
1.10.13 CPWD – Central Public works department
1.10.14 DFR – Draft feasibility report
1.10.15 DGFT – Directorate general of foreign trade
1.10.16 DGS&D – Directorate general of Supplies and Disposal
1.10.17 EMD – Earnest money deposit
1.10.18 MCoDP – Management Committee of Directors- Procurement

1.11.18 (a) MCoD – Management Committee of Directors

1.11.18 (b) CoDP – Committee of Director- Procurement

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1.10.19 EPCG – Export promotion Capital goods
1.10.20 EPCM – Engineering, procurement and construction
Management
1.10.21 EPF – Employee provident fund
1.10.22 EQR – Essential Qualification Requirement
1.10.23 ESI – Employees State insurance
1.10.24 F&A – Finance and Accounts
1.10.25 FAO – Finance & Accounts Officer
1.10.26 FEED – Front end engineering design
1.10.27 FOB – Free on board
1.10.28 FR – Feasibility Report
1.10.29 FX – Foreign exchange
1.10.30 GCC – General conditions of contract
1.10.31 HSE – Health, Safety and Environment
1.10.32 ICB – International Competitive bidding
1.10.33 IEOT – Institute of engineering and ocean technology
1.10.34 IPO – Indian postal order
1.10.35 ITB – Instruction to bidders
1.10.36 LD – Liquidated damages
1.10.37 LIB – Limited international bidding
1.10.38 LOA – Letter of award
1.10.39 LPR – Last Purchase rate
1.10.40 MDT – Multi disciplinary team
1.10.41 MIND – Material management Intelligence & Design
1.10.42 MM – Materials Management
1.10.43 MRP – Material requirement Planning
1.10.44 MSME – Micro, small and medium enterprise
1.10.45 NOA – Notification of award
1.10.46 OEM – Original equipment manufacturer
1.10.47 OES – Original Equipment supplier
1.10.48 PAC – proprietary article certificate

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1.10.49 PAR – Plinth area rate
1.10.50 PS/PBG – Performance Security/ Performance Bank
Guarantee
1.10.51 PEL/ML – Petroleum exploration licence/mining licence
1.10.52 PLEM – Pipeline end manifold
1.10.53 PMC – Policy Monitoring and Control
1.10.54 PO – Purchase order
1.10.55 PQC – Pre qualification criterion
1.10.56 PR – Purchase Requisition
1.10.57 PWB – Parcel Way Bills
1.10.58 QAD – Quality Assurance Department
1.10.59 QCBS – Quality and Cost based selection
1.10.60 RBI – Reserve Bank of India
1.10.61 RFP – Request for proposal
1.10.62 RR – Railway Receipts
1.10.63 SCC – Special conditions of contract
1.10.64 SD – Security deposit
1.10.65 SOR – Schedule of rates
1.10.66 SOW – Scope of Work
1.10.67 T&S – Transport and Shipping
1.10.68 PEC – Procurement Evaluation Committee
1.10.69 TPI – Third party agency
1.10.70 TS – Technical sanction
1.10.71 WPI – Wholesale price index
1.10.72 TMS – Tender Monitoring System

1.11.73 CPD- Central Procurement Department


1.11.74 CPO- Chief Procurement Officer
1.11.75 NTA- Nodal Technical Agency
1.11.76 CLG-Central LSTK Procurement Group
1.11.77 CMG- Central Materials Procurement Group
1.11.78 CDWSG-Central Drilling & Well Services Procurement Group

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1.11.79 CLPSG- Central Logistics and Production Services
Procurement Group
1.11.80 CESG- Central Exploration Services Procurement Group
1.11.81 CDIG-Central Digital IT Procurement Group
1.11.82 CREG- Central RC & Empanelment Procurement Group
1.11.83 CCWG- Central Civil Works Procurement Group
1.11.84 CFG- Central Finance Group-CPD
1.11.85 TPG- Tender Processing Group (refers to Indenting/User
Department (other than MM department) processing the tenders.)

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2 Forecasting

2.1 Introduction

2.1.1 Material forecasting is an essential discipline in procurement as it sets the


base for planning and executing the goods and services requirements for the
organisation.

2.1.2 Even though the business environment is uncertain, preparing accurate


forecasts gives ONGC an insight into the future to take the right actions and
decisions.

2.1.3 Since material forecasts are an input into the company's budget, the
forecasting process and budgeting process need to be in synchronization.

2.1.4 The material forecasts should be prepared well in time for each fund centre
so that it can be incorporated into the budget for approval.

(MM/04/2015 dated 28.04.2015)


2.1.5 Forecasts should be linked with the budget cycle and prepared as defined in the
budget manual to leverage economies of scale.
2.2 Quantity Forecast

2.2.1 Forecasting the quantity requirement for goods and services is the
responsibility of the indenting / user group.

2.2.2 Quantity requirements should be linked to the physical plan and targets
created for the company and agreed with the MOPNG.

2.2.3 Based on the physical plan and Feasibility Report (FR), at the start of each
financial year, a 3 year rolling forecast should be prepared broken down into
quarterly basis.

2.2.4 Inventory on hand, in order and planned consumption before the planning
period should be considered while forecasting the requirement of goods.

2.2.5 The forecast should be prepared at each item level.

2.2.6 The forecast will be approved by the MRP controller and the L-I officer.

2.2.7 Approved forecast will be provided to the MM team for value estimation
(except in case of Civil/Electrical/Instrumentation/Dry Docking/Rigs and
Equipment Repairs/O&M works/LSTK for Onshore and Offshore works, C&M
works etc).

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2.3 Value Estimation

2.3.1 Refer to the section on cost estimation on methods of value estimation for the
forecasted quantity.

2.4 Revisions to budget

2.4.1 If the ONGC board decides to scale up / down the budget, the L-I officer will
decide how to accommodate the requirements in the given budget.

(MM/04/2015 dated 28.04.2015)

2.4.2 The final rolling budget prepared in line with the budgeting cycle will be shared with
user department for further action and execution of procurement.

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3 Category Management

3.1 Category Management is required to achieve a strategic approach to


procurement.

The first step of category management is grouping together goods and services
that are procured from similar supply markets and have similar technical
characteristics into a separate group or category.

This logical grouping of goods and services make their procurement more
manageable by providing the organization a cross functional view.

The primary objective of category manager/ category management team headed


by MM is to develop sourcing strategy and to have an in-depth market
understanding.

3.2 Domain expertise (knowledge of specifications, supply markets, cost drivers,


regulatory environment etc.), relationship management (influencing,
communications, credibility with stakeholders and suppliers etc.), commercial
and procurement acumen are key skills required for category management

3.3 The key responsibilities of a category management team, consisting of user


department, MM and finance at minimum level of E5/E6 are:

3.3.1 Develop procurement strategy for the category

a. Define overall contracting strategy for the category based on


consolidated business demand (make vs. buy, rate contracts, tenure for
hire of services, type of tender etc.)

b. Understand and adopt international best practices of managing the


category

c. Building detailed category risk assessment and mitigation strategy

d. Execute and communicate category strategy to key internal stakeholders

e. Derive value through identification, development and implementation of


value improvement opportunities

3.3.2 Cost Assessment

a. Understand the end to end supply chain of the defined good or service

b. Prepare and maintain bottom up cost models to understand cost drivers


of the particular category (raw material inputs, labour cost, maintenance
cost, transport cost, margins etc.)

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c. Analyse life cycle costing of items procured within a particular category

d. Track market prices through global research and data bases, industry
trends, communication with vendors, industry groups etc.

e. Provide cost estimate (during budgeting and PR) of the procurement.


Maintain detailed justification and back up on cost estimation.

(MM/10/2016 dated 23.03.2016)

f. Provide assistance for rate reasonability.

3.3.3 Vendor Management

a. Study the local / regional and global supplier market of the category,
maintain database of all known sources of supply; review and update the
database on an annual basis

b. Maintain relationship with vendors through vendor meets / surveys /


industry body meets and other channels

c. Provide inputs on BEC / PQC for vendor empanelment

d. Guide vendor performance appraisal along with the user based on the
defined guidelines for performance appraisal

e. Provide regular feedback to the vendors executing contracts for ONGC

f. Identify and implement value engineering initiatives with the vendor

g. Identify potential for new vendor development

h. Provide input to user group on latest technological evolutions in the


category, opportunities for standardization, etc.

54
4 Cost Estimation

4.1 Item-wise Estimated Cost in Indent

4.1.1 Cost estimation will be done after receipt of final forecast from the user
department by (depending on applicability)

a. Category manager/ category management team, if


available.(minimum E5 level)

b. Multi Disciplinary team headed by MM and including indentors / user


group and finance

c. Internal cost estimation team (example: offshore engineering cost


estimation team)

d. External Consultants

4.1.2 For highly complex procurement and limited internal capability, external
consultants may be used for cost estimation. The costing MDT / internal
cost estimation team may apply their due diligence on the report submitted
by the consultants to arrive at the final cost estimate.

4.1.3 Cost estimates shall be valid for one year.

4.2 Cost Estimation Methods

The following basis of cost estimation should be used as applicable /suitable


to the type of procurement. The estimated cost should be realistic, logical and
scientific and should reflect the true picture of the market as far as possible.

4.2.1 Should Costing (XX)

a. Should costing is a process, whereby one can determine the cost of the part
or product or service or a combination of both, based on the raw materials
used, manufacturing costs, labour costs and overhead production costs.
This can be achieved by analyzing the cost drivers such as (list below is
indicative and not exhaustive):

i. Labour cost

ii. Materials cost

iii. Tooling costs

iv. Cost of consumables

v. Waste

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vi. Setup costs

vii. Devices costs

viii. Overheads

ix. Maintenance costs

x. Profit margin

b. Gathering appropriate data is key to should costing. All sources of data and
market intelligence should be leveraged to assess the appropriate cost (list if
indicative and not exhaustive):

i. Secondary information: industry reports to study the trends, market


indices

ii. ONGC data on costs

iii. Relationship with vendors

iv. Relationship with other oil and gas majors

v. Previous technical knowledge and expertise

c. A detailed document with line item wise costing, information source,


calculations, and assumptions should be maintained for back up and future
reference

d. Should costing Model & Estimation prepared on the basis of should costing
shall be approved by Sanctioning Authority after vetting by finance.

4.2.2 Work Breakdown Cost Methodology (XX)

a. Bottom up calculation of costing by breaking work into smaller structures


and estimating the cost of each equipment or service individually. The
total cost is the summation of the individual service and material costs.
The accuracy range of the estimates shall always be mentioned in the
estimates.

b. A detailed document with break down structure and methods and source
of cost estimation for each structure should be maintained for future
reference

4.2.3 Budgetary Quotes (BQ)

a. Before obtaining the budgetary quote, the scope of work including special
conditions of contract should be firmed up so that potential suppliers can
understand the scope and send quotations.

56
b. While collecting budgetary quotes etc., no commitments and assurances
will be held out to prospective vendors / suppliers / contractors.

c. The validity of the budgetary quote should be defined by the supplier.

d. Preferably 3 Budgetary quotes should be obtained from suppliers for that


particular good / service who meet the required specifications in the
scope of work. In case of goods, BQ may be obtained from the
manufacturer or authorized dealer /supplier.

e. If 3 BQs are not available, then justification should be provided to the


Competent Authority

f. Quotations can be collected by either of the following ways (in order of


priority):

i. Physical copy

ii. Email

iii. Published price list on the website / other sources

g. If there is a wide variance between the lowest and highest BQ of more


than 30% then Category Manager/MDT for costing will assess the
importance of quality for the particular procurement. If quality is critical,
the 25th quartile of the BQs will be taken as the estimate. If quality is not
critical and its a standard procurement then lowest BQ will be taken as
the cost estimate. A defined timeline should be given to the supplier to
provide BQ and regular follow ups should be done with the suppliers to
obtain the BQ as early as possible.

h. Further the Category Management Team/MDT/ Internal Cost Estimation


Team/ External Consultants shall apply due diligence while arriving at
final cost estimates based on BQ.

4.2.4 Last Purchase Rate (LPR)

a. LPR should be used only if the same / similar Scope of work /


specification was executed in ONGC in the last 2 years from the date of
PR creation. If no LPR is available for the last 2 years, then LPR upto last
5 years may be used.

b. The latest available LPR should be used for the purpose of cost
estimation.

c. The LPR should be duly adjusted upward or downward for inflation and
Foreign exchange fluctuation and for any change in Taxes & Duties.

57
Depending on the type of procurement for services / goods and the
composition of the same the indices below may be used to establish a
realistic cost estimate (list below is indicative, not exhaustive)

i. Whole sale price index (WPI): use as is or use the minerals, metals
index which is also captured as part of WPI

ii. Consumer Price Index (CPI): Use industrial workers or urban workers
consumer price index

iii. Other Metal indices: London Metals Index, Steel Index, Zinc Index
etc. based on the composition of the good

iv. Foreign exchange fluctuation from the LPR date

v. Oil price movement

vi. CIDC (Construction Industry Development Council)

vii. Minimum wages in case of labour / services contract

Also reputed websites and ONGC subscribed databases such as IHS


Petro data for tracking market trends should be used.

In case of projects / procurement of more than 1 year, future inflation


should be built into the cost estimate. The forecasts available for the
indices used for adjusting the LPR may be used for building in the future
escalation. In case the expenditure schedule is known then escalation
should be built in based on the schedule of expenditure, else escalation
shall be added up to the midpoint of completion period for contract.

In case future forecasts are not available, the average of the last 2 years
of the indices may be used for future forecasts.

d. For procurement which cannot be linked to a single index for escalation,


the MDT team consisting of indenting, MM and finance stakeholders
should define the escalation metrics / methodology and inputs to be used
for cost estimation. In case there is a change in the SOW from the last
purchase, the MDT may apply due diligence and accommodate the same
in the LPR to arrive at an accurate estimate.

4.3 Costing for hiring of consulting services / domain experts / TPIs and
certification agencies

4.3.1 For hiring of above category of services, the LPR (duly adjusted for inflation,
Foreign exchange) may be used as the basis of estimate or a BQ may be
requested. Refer to section 4.2.3 & 4.2.4 on guidelines for cost estimation
using BQ.

58
(MM/26/2017 dated 21.06.2017)

4.4 Costing for OEM / proprietary purchase

4.4.1 For material which has been previously procured by ONGC:

4.4.1.1 If IMPETUS R/c or any other rate contract / contract price already exists for the
OEM purchase then that should be used for cost estimation .

4.4.1.2 If not, then refer to the international published price list for the particular OEM
items

4.4.1.3 If none of the above exists, then refer to the last purchase price of the purchase
(even if it is more than 2 years old), duly adjusted for escalation and foreign
exchange (refer to guidelines on adjustment for inflation in the LPR
methodology of cost estimation section), as cost estimate.

4.4.2 If it is a new purchase, then either international published price list for the
particular OEM items as per para 4.4.1.2 should be considered for costing or
BQ from the OEM should be obtained.

4.5 Costing for Civil /Electrical and other works

(MM/04/2015 dated 28.04.2015)

4.5.1 Preparation of Preliminary estimate to be used for budgeting and Administrative


approval (Definition of Works has been detailed at Appendix – 16)

a. Preliminary estimate for building works is to be prepared on the basis of


CPWD plinth area rates (PAR) with appropriate cost index, items which are
not available in the PAR shall be considered on the basis of available internal
data base / LPR / consultant's data base or market survey / quotations. If
market survey / budgetary quotation method is followed then the CPWD
method of making detailed estimate will be followed. If considered relevant
other SORs may be adopted with prior approval of the L-III officer / E6 officer
of the technical team.

b. Preliminary estimate for roads work shall be on the basis of length of road
worked out on the rate per unit length on LPR / internal data base. This shall
be approved by L-III officer / E6 officer of the technical team.

c. For drill sites the preliminary estimate should be calculated on the basis of
historical data / LPR or available data base rates.

Note: The method for working out the cost index (CI) will be on the basis of
CPWD. In case cost index is issued by CPWD it will be followed, no further
approvals required. However, if the cost index is worked out on the basis of

59
CPWD guidelines, it shall be approved by L-II / E7 officer, wherever L-II officer
is not posted the approving authority should be minimum L-III / E6 level.

4.5.2 Detailed Estimates to be used for Technical sanction and invitation/justification


of tenders:

a. Latest CPWD Schedule of Rates (SOR) duly enhanced by appropriate cost


index (applicable for the work area) shall be considered. As a policy, CPWD
rates will be adopted. If considered relevant, other SORs may be adopted
with the prior approval of L-III officer / E6 officer of technical department.

b. Whenever rates of some items are not available in CPWD SOR, prevailing
market rates collected as per cl.4.5.3 or rates provided by the project
consultants based on their data base or market quotations or available in
other SOR or any of the cost estimation methodology mentioned above, shall
be adopted in the estimate. When any of the above method of estimation is
adopted it must be approved by the L-II officer of the technical department
and wherever level II officer is not posted it should be approved by minimum
Level III / E-6 level officer of technical department.

c. If at any stage it is felt that SOR rates are not workable, fresh market rates
may also be adopted for estimation with the approval of L-II officer of the
technical department and wherever level II officer is not posted it should be
approved by minimum Level III / E-6 level officer of technical department.

4.5.3 Market survey shall be done by the Service/ Project Execution group and
finance team to collect costs / budgetary quotations. For this, budgetary offers
can be in any of the following forms:

a. By collecting quotations from OEM / OES / authorised workshops.

b. Collection of hand quotations

c. Through email

d. Published Price List of manufacturer with discount if any.

e. Verbal enquiry from the market duly signed by the enquiring officer.

The basic market rates so collected and analysis of rates for the individual
items shall be approved by not lower than Level-III / E6 level officer of the
technical department.

4.5.4 Cost estimates for other jobs of specialized nature etc. shall be prepared using
project cost data obtained on budgetary basis or drawn from execution of similar
earlier works with appropriate escalation, or use of costing software / database
or through expert services of experienced consultant.

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4.5.5 No profit margin will be considered where ever budgetary quotes are adopted
for complete Scope of work. However profit margin will be added if the budgetary
quote is for an item which is part of the complete tender/scope of work

4.5.6 Following components to be added while preparing the detailed estimates

a. Applicable taxes, duties and statutory payments such as Service tax, EPF,
ESI etc. shall be added to the cost estimate

b. Escalation for the project duration average of last 2 years CPWD Cost Index
shall be added up to the midpoint of completion period for contracts having
completion period 12 months or more. This shall be applicable for rate
contract of period more than one year.

c. Contingency of 5% for works of value up to Rs.1.0 crore and 3% for higher


values.

However, tenders shall be invited and evaluated on the basis of Technical


Sanction value.

(MM/10/2016 dated 23.03.2016)

4.5.7. While preparing cost estimation sheet, a column for reference viz. CPWD
SOR, PWD SOR, BQ, LPR etc. with item numbers against all individual
item(s) should be created for cross checking the estimation data by various
departmental agencies. In the cost estimation sheet itself, technical
specification against each individual referred item shall be confirmed. In
case of any deviation, the extent of deviation taken shall be indicated.

(MM/18/2016 dated 22.09.2016)

4.6 Costing in case of LSTK projects

4.6.1 In case of LSTK / EPC works, costing methodology approved by respective Chief of
Services through their respective VCB shall be followed. The expected accuracy
range of class 1 estimate should be used for preparation of estimates for tender
document and also for check estimate i.e. for justification of rates.

(MM/24/2017 dated 24.04.2017)


(MM/113/2023 dated 08.12.2023)
4.7 Revision of Cost Estimate for Service Contracts and LSTK projects:

Cost estimates need to be reviewed under the following situations:

(a) The time interval is more than 18 months between preparation of cost
estimate & the date of tender opening.

(b) Substantial change in market condition as due to change in external


economic and market environment.

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Cost estimate may be reviewed before the due date of bid submission by the
team which prepared the initial estimate. Such revised cost estimates shall
be got vetted from the head of the finance of the work centre / establishment.
The revised cost estimate will need to be approved by the concerned
competent authority who approved the preliminary estimate (for LSTK
contracts as defined under para 11.1.1.3), with full justification. Accordingly
tender conditions if any, required to be changed as a consequence of revision
of cost estimate, the same will be amended before submission of the bid.

The revised cost estimates prepared as a sequel to pre-bid conference or


otherwise shall be frozen before the due date of bid submission and submitted
to BEC Formulation Committee for appropriate decision as per para 12.17.8.

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5 Scope of work (SOW) / Specifications

5.1 Specifications

5.1.1 To enable the effective procurement of materials and services a clear and
complete scope of work (SOW) / specifications is critical. Along with the
approved forecast clear and detailed specifications / SOW must be provided
to the Category Manager/MDT, including drawings wherever necessary, so
that there is no ambiguity left and to enable proper cost estimation/ bidders to
quote for correct materials / works / services. The specifications should be
drawn up in general terms without quoting reference to any particular firm or
taking it as model specifications.

5.1.2 The indentors should not ask for proprietary materials or draw up specifications
that would result in proprietary procurement, except in cases, where
proprietary procurement is unavoidable. Specifications should normally be
drawn in such a manner that there is a wide field of suppliers.

5.1.3 Before creating the Specifications/ Scope of Work, indentors should check if
specifications for the particular requirement have been standardized within
ONGC centrally. Wherever specifications have been standardized no further
approval will be required.

5.1.4 Whenever specifications have not been standardized, specifications will be


prepared by the concerned User / Indenting department. Such specifications
shall need the approval of the competent authority as per para 34.1 of MM
Manual.

5.1.5 Before finalization of scope of work Inputs may be taken from -associated
teams, category manager (if applicable), empanelled vendors or vendors from
whom we have previously purchased the material and / or service.

5.1.6 While specifying mobilization/delivery/completion period in the tenders, a


realistic approach should be adopted by taking into account the experience
gained during the past in similar type of tenders.

5.1.7 Utmost care should be taken while working out the ‘quantum of work’, so as to
stipulate the same in the tender in a realistic manner and as accurately as
possible along with a provision for positive and negative variation for certain
quantity in actual situation.

5.2 Goods and Services

5.2.1 While finalization SOW / specifications the following elements should be


considered:

a. Full description of the materials/services required

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b. The quantity of materials or the duration of the service as applicable

c. All relevant codes, standards, technical qualifications applicable

d. All relevant Company HSE, Quality and Inspection requirements

e. The warranty requirement of the material

f. The indent must specify the time by which the material is required. In
Indent, the definite delivery schedule and the place at which the materials
are to be delivered and / or dispatched will be indicated. Firm period of
delivery is to be indicated while raising the purchase requisition. However
for staggered delivery separate line items to be created indicating quantity
and date by which material is to be delivered.

g. Delivery of the equipment, whose utilization is interdependent, is


synchronized in such a way that none of the equipment remain idle for
want of others

h. Where commissioning and erection of equipment is involved, the


capability and capacity of the manufacturer for the purpose must be
assessed thoroughly before placement of order.

i. Where installation of equipment is involved all necessary suitable


infrastructural facilities should be made available well in advance before
receipt of material at destination.

j. Indication of Standard sizes/ranges in Indent: As far as possible, indents


should be for standard sizes/ranges of the equipment.

(MM/15/2016 dated 05.07.2016)

k. Material required for petroleum operation in PEL/ML in nominated blocks


or NELP/other eligible blocks and the material required for any other areas
may be indicated separately in tender document.

5.3 Civil Works

5.3.1 In case of civil works, all the responsibilities of the indentor detailed above
will be undertaken by the Technical Project Team of the civil department.

5.3.2 Horticulture works shall be handled by Horticulture section. In case


horticulture section is not available at a particular work centre, then it shall be
handled by the Civil Dept.

5.4 LSTK
(MM/112/2023 dated 30.11.2023)
5.4.1 Finalization of Scope of work (Offshore Projects)

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a. Execution methodology of projects will be approved by the CPA
(concerned L-1 has full powers).

b. As Far as possible, scope of work for LSTK should be made on the basis
of Front End Engineering Design (FEED) / functional specifications.

c. Based on the broad scope of work available in Draft Feasibility Report


(DFR) prepared for approval of the scheme, Project
Group/MDT/indentor/user group shall prepare the detailed and firm scope
of work, to the extent to facilitate bidders to prepare the cost estimate to
reasonable accuracy and bid for it. The detailed scope of work is to be
developed and finalized in consultation with technical consultant appointed
for the Project and the inputs from the MDT.

d. Geo Technical Investigation and seabed survey, for obtaining Soil and
Bathymetry Report, shall be carried out through Marine Survey Group and
data analyzed by IEOT / Rig Move & Safety cell and soil/ bathymetry
reports so finalized will be part of bidding document for well /process
platforms. Advance action for obtaining the soil data shall be initiated since
re-sampling / shift in location may be necessitated due to reasons such as
Punch through, obstruction etc. In case of any location found not suitable
due to various reasons including punch through, obstructions etc. Project
group shall take up the same with the sub-surface and get a revised
location released at the earliest.

e. MDT / sub–surface team of Asset will provide the location co-ordinates


for proposed surface facilities, drift & direction of Wells to be drilled (if any).
Well slot diagrams for all wells indicating type and size of conductors
(vertical / curved / vacant) shall be obtained from drilling services.

f. Information regarding Bathymetry, soil and other surveys e.g. Pipeline


route/ corridor, shore approach, platform approach and other relevant
environmental data for Pipeline Projects shall be coordinated with Marine
Survey Group and put into the Bidding documents for Pipeline/Sub-sea
Cable Laying Projects.

g. Estimated number of crossing, Pipeline free span and no. of one-line


valve, Laterals & PLEM (if any) may also be indicated in the Bidding
documents, in consultation with Consultant / Asset.

h. Area identified for the Project on existing Platforms shall be clearly


marked up on a drawing and signed jointly with FPS/Asset representative
to avoid the area being utilized for some other purpose.

5.4.2 Finalization of Scope of work (Onshore Projects)

a. Execution methodology of projects will be approved by the CPA (Concerned


L-1 has full powers).

65
b. As Far as possible, scope of work for LSTK should be made on the basis
of Front End Engineering Design (FEED) / functional specifications.

c. Based on the broad scope of work available in the FR (DFR) prepared


for the approval of the scheme, Head Engineering Services in the Asset
/ Basin / Work centres shall prepare the detailed and the firm scope of
work, to the extent to facilitate Design Division / external consultants to
provide Basic engineering including order of magnitude estimates and
preparation of Technical Bid Packages. The detailed scope of work is to
be developed and finalized taking into account the technical inputs from
MDT / Asset / Basin / Work centers.

d. Geotechnical investigation for obtaining soil report and topographical


survey shall be carried out by the Asset / Basin / Work centres and soil /
survey report so finalized will be part of the bidding document for Onshore
Surface facilities / Pipe lines.

e. MDT /Asset / Basin / Work centres will provide the location coordinates
for proposed surface facilities /pipe lines.

f. Asset / Basin / Work centre will carry out Site survey and soil investigation
(for surface facilities) and route, cadastral survey and soil investigation /
resistivity surveys (for pipe lines projects) including hydrographic and
bathymetry survey as may be needed and also crossing details i.e. rail /
road / river / water bodies etc. along with profile, number, location. All
such site related details will be furnished by the Asset / Basin / Work
centres and furnished to Design Division / project group for incorporating
in the bidding documents.

g. In case of revamping / modification works envisaged in the scope of work,


site survey / physical health check shall be carried out by the respective
discipline engineers of Consultant / in house group for preparing the
related scope of work for the Bid Package.

5.5 Third Party Certification /Inspection Agency

5.5.1 Certification / Inspection Agency may be appointed to issue Certificate of


Fitness in respect of quality as per defined specifications.

5.5.2 Scope of work for third party certification/Inspection work shall be prepared
by the indenting with details of specs to be inspected, tests to be carried out
etc. For civil works and other projects the Technical department in
consultation with and duly vetted by Engineering Consultant should prepare
the scope of work.

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5.6 Revision in Scope of Work

5.6.1 Once given along with the indent (final release of indent on the system), SOW
would be considered as final.

5.6.2 In case after the pre bid conference, if it becomes necessary to change the
specifications post inputs from the vendors then same would require approval
of the competent authority, who initially approved the scope of work, with full
justification.

(MM/26/2017 dated 21.06.2017)

5.6.3 After Invitation to Bid, where no pre-bid conference takes place, no change
in specifications or scope of work or special conditions of contract is
admissible generally. If the indentor seeks revision in any of the above based
on the queries received or otherwise, the approval of the concerned authority
as per clause No. 34.1.1 and 34.1.2 of MM Manual will be required with full
justification..

5.6.4 Change in scope of work / specification after opening of tender is not


permissible, except for cases of OEM (both spares & service) where OEM
doesn’t quote some of the items precisely as per tender specification, due to
obsolescence etc.

5.6.5 (Relocated at 15.3.3.1)

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6 Indenting

6.1 Procedure for Placing Indent on Materials Management

6.1.1 The following will be required to raise a PR

a. Approved Scope of work / specifications (including technical sanction for civil


works, SCC, BEC, PQC, Specs, delivery schedule etc.)

b. Financial concurrence (only in case there is no line item budgeting and


financial concurrence could not be done at budgeting stage)

c. Cost Estimate

d. Administrative Approval

(MM/26/2017 dated 21.06.2017)


e. – Deleted -

f. – Deleted -

6.1.1.1 In case of any urgent requirement (new or additional requirement), the case
for procurement/contracting can be processed without sanction with the
approval of concerned Key Executive. Even in such cases, the sanction
note must be initiated before/along with the proposal for approval of BEC
by competent authority. However price bid will be opened after obtaining
necessary sanction.

6.2 Process for Raising of PR under centralized procurement

6.2.1 For procurement of material / services with standard specification, the central
indenting team which manages the procurement shall frame specification and
circulate the specifications sheet to the assets.

6.2.2 In case standard specifications do not exist, then the central indenting team which
manages that procurement circulates a checklist of defined specifications /
specifications used in previous procurement to the user group for gathering the
requirement.

6.2.3 The central indenting team which manages that procurement defines a reasonable
timeline in which the user group must respond to the requirement. The concerned
Chief of Services will place the consolidated indent and convey the required
expenditure sanction to the centralized procurement team. If the Chief of Services
fails to respond with the requirements to the central indenting team in the defined
timeline then procurement for those items will not be undertaken for that work
centre.

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6.2.4 On receipt of the requirements from the different assets, the central indenting team
consolidates the requirements.

6.2.5 The MRP controller runs checks on the consolidated requirements.

6.2.6 The central indenting team which manages that procurement / category manager
(if applicable) reviews the cost estimated for the procurement at the time of
budgeting and revises the cost estimate only on a need basis.

6.2.7 Once the scope of work and cost estimate is finalized, the PR is created by the
central indenting team which manages that procurement if the budget is with the
central indenting team otherwise the PR will be created by the indentor.

6.3 Process for Raising for PR de-centralized procurement

6.3.1 The user group defines the scope of work and the technical specifications.

6.3.2 The scope must be technically approved by the technical sanction authority as per
BDP (for works and LSTK).

6.3.3 MRP controller shall check the material requirement as per 1.9.5.

6.3.4 The user / Category Manager (if applicable) reviews the cost estimate for the
procurement at the time of budgeting and revise the cost estimate only on a need
basis.

6.3.5 Once the scope of work and cost estimate is finalized, the PR is created by the
user.

6.4 OEM purchase

6.4.1 Equipment / OEM-wise indents for stores & spares: Indents for procurement
of stores and spares will be raised equipment / OEM-wise.

6.5 Appointment of Domain Experts/Consultants

6.5.1 As far as possible only in-house design engineering resources shall be availed.
The appointment of consultant shall be resorted only in case where in-house
facility is not available. The appointment of consultant will be approved as per
BDP. Further, as far as possible hiring of consultants should be done against
Open/Limited tenders instead of on Nomination basis to ensure competitiveness.

6.6 Additional guidelines for preparation of PR

6.6.1 For ICB tenders, item's specified in Directorate General of Foreign Trade's
negative list should be imported only if license has been obtained from DGFT.
The list is available at DGFT's website(www.dgft.gov.in) and the indentor should
check it before raising PR.

69
6.6.2 Indication of source of supply in Indent: For open tenders, the indentors, while
sending indent to concerned Materials Management, will invariably check the
historical ONGC vendor data base to suggest at least three number of parties
who are prospective suppliers of items as per designed specifications. Similarly,
for items being purchased first time through open tender, the indentor will indicate
at least 2 potential sources of supply who meet the designated specifications.

6.6.3 Timing of Raising Indent

a. Auto Indent for items

i. In the case of items for which the auto re-order point will be fixed, the
indent will be automatically generated by the system. MM can proceed
with purchase of such material without any further reference to
indentor and finance.

ii. Only in case of shortfall in the expenditure sanction, MM will refer the
indent back to the indentor for additional expenditure sanction.

b. Wherever maximum/minimum and re-order levels have not been fixed for
auto indenting, the indenting section will continue to assess its requirement
and to place its indent on the purchase section.

c. Ad-Hoc Purchases: As far as possible, adhoc purchases will be avoided.


Items, for which there is repeated emergency purchase, will be added to the
list of Stock Items, which would be progressively increased and the list of
Non-Stock items correspondingly reduced.

6.6.4 Grouping of Items: Whenever the purchase involves items to be purchased


in groups, the same grouping should be intimated along with indent by the
indentor.

Sieving of items should be properly done at the indent stage itself so that items
independent in nature are indented separately.

6.7 Technical Sanction for Civil Works

6.7.1 The PR may be created and released on the basis of preliminary scope of work
and cost estimate.

6.7.2 However, a detailed cost estimate based on specification, essential drawings


and preliminary structural and service designs shall be prepared for obtaining
technical sanction by the competent technical accepting authority. The Technical
Sanction (TS) to the estimate must be obtained before the tenders are invited.
Powers for approving technical sanction shall be exercised as per powers
delegated under the relevant ‘Item No.’ of BDP.

70
6.7.3 Technical sanction must be accorded by the competent technical accepting
authority after satisfying himself regarding basis of estimation, detailed scope of
work, design etc.

6.7.4 In case of multi-component projects / sub-heads of works, sanctioned (Exp.


Sanction) by the Competent Authority for which a clear and specific provision
exists in such expenditure sanction, TS may be accorded for each such
component by an authority, as defined under BDP.

6.7.5 In case of LSTK projects which includes civil works also, no separate technical
sanction for civil works will be required if entire technical bidding document is
approved by the CA.

6.8 Excess over Expenditure Sanction


(MM/81/2023 dated 10.01.2023)

6.8.1 In case the indent value exceeds the budgeted amount, the additional sanction
must be obtained and conveyed along with the indent.

(MM/106/2023 dated 29.09.2023)


6.8.2 In case, of occurrence of any shortfall in expenditure sanction before or during
tendering, the tendering process shall not be held up for want of additional
expenditure sanction. However, Price bid shall not be opened without
additional expenditure sanction, if any, except in the cases where original
sanction/revised expenditure sanction has already been accorded by the
Board; in such cases, additional expenditure sanction shall be obtained from
the Board after Price bid opening. In cases where original/revised expenditure
sanction has been obtained at below Board level and if after revision, the case
falls within the powers of the Board, then in such cases also additional
expenditure sanction shall be obtained from Board after opening of Price bid.

In case, there is a variation in the cost of project by more than +/- 30%, between
the date of obtaining sanction from the Board and NIT date, then sanction for the
revised project value is required to be obtained from the Board, before issuance
of tender.

6.8.3 In case any shortfall of sanction is known after price bid opening then Notice of
Award should be only placed after obtaining additional expenditure sanction.

6.9 Capital Items Purchase

6.9.1 Before raising of indent for capital items, all concerned should make sure that
the same/similar capital item is not available either in any stores or any of the
sites.

71
6.10 Radioactive material or items containing radioactive sources

6.10.1 In case of existence of Radioactive material in any form in the goods intended for
import, the permission from the Department of Atomic Energy should be obtained
by the indenting department before the indent is placed.

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7 Procurement strategy

(MM/112/2023 dated 30.11.2023)


7.1 Large project procurement strategy

7.1.1 Process of designing procurement strategy for large projects (Cost estimate >Rs 50
Crores) should normally be aimed to decide what parts can be done in-house and
which parts need to be outsourced for timely completion of the project in an effective
manner also by maintaining competition and ensuring on-going performance.
(MM/114/2023 dated 20.12.2023)
7.1.2 A workshop involving representatives of Indentor(s), User(s), Finance, Legal (if
required), MM, MIND (for the categories under their scope) and any other concerned
dept.(wherever necessary) shall be held to decide on the procurement strategy.
Final decision on the procurement strategy will be taken by the Concerned L-1
based on recommendations from the workshop. Concerned L-1 shall have full
powers.

7.1.3 In case, workshop need not be conducted, then approval of CPA shall be required.
(Concerned L-1 shall have full powers in MCoDP / CoDP cases). Also, repeat
approvals are not required if last tender of similar project was given approval to go
ahead without workshop.

7.1.4 Key procurement strategies for large projects:

a. EPC LSTK: The entire project from engineering, procurement and


construction will be contracted out to a single contractor on a lump sum
turnkey basis. The contractor could then use sub-contractors as necessary
and will do the project management for the same as well.

b. Mixed contracting: The project management role will be done by ONGC and
there will be separate contractors for Engineering/Procurement (E& P could
be reimbursable or lump sum) and Construction (Typically on a lump sum
basis). This type of contract allows better control for ONGC and could lead
to improved project performance in terms of timely completion, expected
performance, cost competitiveness

c. EPCM: There will be separate contractors for Engineering/Procurement and


construction. The construction management role will also be done by
contractor performing engineering and procurement. The EPCM
(Engineering, Procurement and construction management) contractor will
take up considerable project management from ONGC.

d. EPC Reimbursable: EPC Contractor is paid for its services on an hourly rate.
It is paid for procurement and construction based on actual costs, plus an
added pre-determined profit margin. Typically represents high cost
competitiveness but risk of cost overruns will be on ONGC

73
7.1.5 Guidelines around deciding on level of outsourcing in projects:

a. Two key considerations to be considered by ONGC in determining the


contracting strategy are ONGC's expertise in project management (including
ability to manage multiple interfaces) in specific type of project being
considered and criticality of the project.

(i) If the project is critical and ONGC possesses the requisite experience in
project management (including ability to manage multiple interfaces),
then ONGC should prefer Mixed type of contracting.

(ii) If the project is critical and ONGC does not the possess the requisite
experience in project management (including ability to manage multiple
interfaces) in the specific type of project then EPC LSTK contracts should
be preferred.

(iii) If the project is not critical and ONGC possesses the requisite experience
in project management (including ability to manage multiple interfaces)
in the specific type of project then Mixed contracting should be considered
subject to availability of the professionals; EPC LSTK contracts should be
considered for all cases where ONGC has expertise but there are not
enough resources to be dedicated to the project.

(iv) For all other cases, EPC LSTK contracts should be the preferred
procurement strategy.

b. The above options can be used for even smaller value projects (<Rs. 50
crores) without mandating workshops.

Additional guidelines:
(i) The market trend for consumer products must always to be kept on the
focus.

(ii) Wherever feasible, price formula should be firmed up before


commencement of execution of Project.

(iii) Wherever possible, long term commitment should be made from the
prospective parties before going ahead for execution of project.

(iv) A detailed check list should be available for monitoring and mid course
corrections.

7.2 Procurement strategy of goods/services

7.2.1 Purchase of frequently ordered goods/services with limited suppliers

a. For common items required continuously throughout the year in large


quantities, common services hired repeatedly through the year and limited

74
suppliers (as determined in market study), centralized rates contracts should
be entered into. However, for work centre specific items/services required
continuously throughout the year RCs may be entered into at respective work
level.

b. Items/Services for which rate contract should be concluded will be identified


and the list will be reviewed and additions made every year depending upon
the past consumption or on anticipated consumption. Rate contracts will not
be entered into in the case of items/services for which the market shows
marked downward trend. In order to provide against a rise/fall in the market
price during the currency of the rate contracts that are valid for more than a
year, the contract may include the standard Fall Clause/ suitable escalation/
de-escalation clause).

7.2.2 Purchase of frequently ordered goods/services with multiple suppliers

a. For items/services required continuously throughout the year in large


quantities/multiple times and with multiple suppliers (as determined in market
study), it may be advantageous to have empanelled vendors where
items/services are procured by a limited tender requesting only for price bids.

7.2.3 Contracting options for Services

a. Open book /Cost plus contracts(Government Department Only)

(i) Cost plus contracts will be preferable for services with unstable
underlying prices and no clear indices that reflect the variation in prices.
Also, these contracts are suitable where full extent of service required is
not known at the time of award of contract.

(ii) In cost plus contracts, service providers will be reimbursed based on


actual costs incurred.

b. Fixed plus escalation/fall

(i) Fixed cost contracts with escalation/fall clauses are preferable for
services with unstable underlying prices and where reliable indices are
available that reflect the variation in underlying prices. Instability in prices
should be determined based on the time period considered for the
contract.

c. Fixed price

(i) Fixed price contracts are preferable for services with stable underlying
prices. These contracts can also be used in cases where ONGC decides
to keep the procurement of services to a pre-determined budget but it is
to be then kept in mind that cost competitiveness of such procurement
could be low.

75
7.3 Provision to use Empanelment

7.3.1 Empanelment will be an option that is applicable across different procurement


strategies explained in this section. The mentioned type of procurement strategies
can be executed with empanelled vendors based on status of empanelment and
convenience in the specific category of procurement.

7.4 Market Study

7.4.1 Market studies would be a key tool in helping assess the mode of tendering to be
used for the procurement.

7.4.2 Detailed market study should be carried out. Information must be gathered about
the supply market from which the good or service will be purchased.

7.4.3 Responsibility:

a. Category Manager (if available for procurement type)

b. MM team (if there is no category manager for procurement type)

76
8 Mode of tendering

(MM/60/2020 dated 13.11.2020)


(MM/112/2023 dated 30.11.2023)
8.1 Procurement through Government e-Marketplace (GeM):

(Procurement through GeM shall be governed by procedure, process, General


terms & conditions (GTC) as published on GeM portal subject to exception/
exclusion, if any, mentioned hereunder Para 8.1 and its sub paras. Wherever
procurement is being done through GeM, the provisions stipulated herein under
shall prevail, superseding any other similar provisions appearing elsewhere in the
IMMM)

The Government has created an internet portal called Government e-Marketplace


(GeM) to provide an end-to-end online Marketplace for Central and State
Government Ministries / Departments, Central & State Public Sector Undertakings
(CPSUs & SPSUs), Autonomous institutions and Local bodies, for procurement of
common use goods & services in a transparent and efficient manner. Suppliers and
buyers can register on this portal. GeM facilitates seamless process flow and
standardized specifications with complete audit trail.

For procurement of Goods/Services, the items/services available on GeM shall be


procured through GeM portal only. The procurement through GeM shall not be
mandatory under specific situations stipulated in IMMM e.g. purchase through board
of officers, emergency purchase etc. In case item is not available in GeM, purchase
through other procurement methods as specified in IMMM may be resorted to
subject to a mention to this effect by Indenting Department.

Efforts shall made for onboarding all the items / services (along with Technical
specifications and other item specific conditions) being procured in ONGC on GeM
portal as a continual process. Further, onboarding of vendors for respective items
as per process of GeM shall be taken up.

In exceptional circumstances only, where procurement through GeM cannot be


done, purchase through other procurement methods as specified in IMM Manual
can be resorted to with the prior approval of CPO. However, valid reasons shall be
recorded while seeking such approval.

Note: The word supplier/seller/service provider has been used interchangeably.

8.1.1 Registration of users in GeM

77
8.1.1 The Registration of users and authentication in GeM is based on OTP driven Aadhar
authentication. The users are segregated into primary and secondary users. Primary
user is the nodal authority from his organization for GeM portal who will not perform
any tendering activity on the GeM portal. In-charge of Materials Management at work
centre will be the primary user for all departments including indenting and finance
departments of that work centre. The main roles and responsibilities of Primary user
are to act as representative of ONGC, filling of ONGC’s details and creation of
Secondary Users, editing their roles and their deactivation.

Secondary users are Buyers (Indentor, Dealing Officer from MM deptt/Tender


Processing Group), consignee (Receipt section at stores or Indentor as the case
may be) and Paying Authority (Finance Deptt.).In case of Services, Indentor shall
be consignee. Secondary users will be of minimum E1 level except consignee at
stores. They will be nominated with the approval of concerned Head of the
Department (L-2, L-3 level) / I/c-Finance (in respect of payment authority)/I/c MM
(in respect of buyer (dealing officers from MM deptt.) and consignee at stores), as
the case may be. Since the User Id is transferable, it shall be assigned to successor
in case of movement of primary/secondary user from the work centre.

The Primary & Secondary users shall be responsible for role/responsibilities


defined herein including those stipulated in GeM.

8.1.2 Procurement Process:

The following procedures shall be followed for procurement through GeM, as per
process prescribed in General Terms and Conditions available on GeM portal:

8.1.2.1 Purchases without tendering (bidding)

8.1.2.1.1 Direct Purchase without bidding:

Procurement upto the limit as specified by GeM for Direct Purchase in General
Terms and Conditions available on GeM Portal shall be done through Direct
Purchase without tendering (bidding) as per process defined in GeM portal.

8.1.2.1.2 L-1 purchase without bidding:

Procurement above the limit of Direct Purchase and upto the limit as specified in
General Terms and Conditions available on GeM Portal, in this regard, shall be
done through L-1 Purchase without tendering (bidding) as per process defined in
GeM portal. However, option of creating a bid in GeM portal can also be exercised
in this case.

Note: Applicable for both Para 8.1.2.1.1 and 8.1.2.1.2 above:

78
i) PR/PO/GRV shall be created for all procurement through GeM irrespective of
value.
ii) It will be ensured by Indentor (buyer) that the chosen supplier is not on ONGC’s
suspension or banning list of defaulting firms.
8.1.2.2 Purchase with tendering (bidding)

8.1.2.2.1 Procurement for the value as specified for bidding, in General Terms and
Conditions available on GeM portal, shall be done through tendering (bidding) in
GeM, as per process defined in GeM portal.

The tenders to be processed through GeM shall not require uploading of NIT and
tender documents on ONGC tender/ ONGC e-tender/ CPPP portals. The GeM
system automatically sends information about tenders to prospective suppliers
registered with them

The option of ‘Bid to RA’ as available in GeM portal while creating bid, will be
utilized for the cases valuing Rs.1.00 crores & above and wherever,
item/product/services meeting all the technical requirement is available from at
least 3 different manufacturers/service providers in GeM market place. In case of
procurement of Goods, as the name of Sellers are not visible in GeM portal while
searching for the product, manufacturers may be identified based on the Brands
as seen in the GeM market place. Dealing officer shall keep screenshot from GeM
portal in this regard for the purpose of record.

8.1.2.2.2 Bid Validity :


While creating the bid, bid validity shall be stipulated as available on GeM portal
subject to maximum 45 days. The Bid Validity can be further extended with mutual
consent between ONGC and Seller, as per General Terms and Conditions
available on GeM Portal.

8.1.2.2.3 GeM has its own pre-defined terms & conditions and hence, ONGC’s terms and
conditions and GCC shall NOT be incorporated to ensure that there is no
confusion amongst the bidders/ sellers.

(MM/72/2022 dated 14.01.2022)


(MM/112/2023 dated 30.11.2023)
In case unloading of material at consignee location is to be kept in the scope of ONGC
and not in the scope of supplier, suitable provision in this regard can be kept in tender
conditions with the approval of CPA. (concerned L-1 has full powers in this regard).

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8.1.2.2.4 Earnest Money Deposit /Performance Security:

i) EMD/Bid Security @1% of estimated cost put to tender shall be required from the bidders
in all the cases beyond the limit specified in General terms and conditions available on
GeM Portal.

All terms and conditions with regard to submission of EMD including the categories of
Sellers exempted from furnishing the EMD shall be as per General terms and conditions
available on GeM Portal.

(MM/100/2023 dated 29.08.2023)


ii) Performance Security/ PBG shall be required from the successful bidder, as per General terms and
conditions available on GeM Portal.

The provisions on type of instrument/ format/submission time/ exemption/ Validity/ return


/ forfeiture etc. as applicable on GeM portal in respect to Earnest money Deposit/Bid
Security/ PBG/ Performance Security/ Security Deposit shall be applicable.

However approving authority shall be governed as per BDP/IMMM, in case any approval
is required.

(MM/72/2022 dated 14.01.2022)


The validity of PBG shall be obtained for 60 days beyond delivery period/completion
period. In case PBG is required to be valid for additional period (including warranty period),
the same can be done with the approval of CPA, while inviting tender.

(MM/119/2024 dated 02.02.2024)


The monetary limit for Performance Security / security deposit for GeM procurement cases
for supply of goods and for Services will be as under:

i. Supply of Goods – 5% of order / contract value.


ii. All type of services – as per table below.

Contract Period % of PS/SD

Upto 1 year 5% of the total contract value

More than 1 year and 3 % of the total contract value


upto 2 years

More than 2 years 2% of the total contract value

(MM/78/2022 dated 10.10.2022)


-Deleted-

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8.1.2.2.5 Opening of Bids

Opening of bid shall be as per process defined in GeM Portal.


Presence of bidder (supplier) will not be required during bid opening.

Clarifications may be sought from the bidders as per provisions on GeM portal.

(MM/113/2023 dated 08.12.2023)


8.1.2.2.6 While seeking approval of CPA for short-listing of bidders for price bid opening,
detailed reason along with references to respective clause of bidding document,
should be explicitly brought out while rejecting bid during technical evaluation in
GeM.

Technical comments shall be provided at the level as mentioned at Para 13.2.1.

The technical bids (offers) of sellers who are under suspension/ banning in ONGC
shall be rejected so that price bids of such bidders (sellers) are not opened and
they are precluded from obtaining orders though GeM.

8.1.2.2.7 After price bid opening if it is observed that the name of the L-1 supplier appears
in the list of suspended/banned firms in ONGC, the order shall not be placed on
such supplier, the case will be retendered in GeM. If the same firm participates in
the retender, its offer shall be rejected during technical bid evaluation as brought
out at para no. 8.1.2.2.6.

8.1.2.2.8 The Price bids of the technically acceptable bidders will be opened by the dealing
officer. Presence of suppliers will not be required during price bid opening. Ranking
is automatically determined by GeM and order shall be placed on L-1 bidder
displayed by the GeM software.

8.1.2.2.9 Purchase preference policies:

Purchase preference policies as implemented on the GeM portal will be followed.

8.1.2.2.10 (Applicable for both Procurement with bidding or without bidding)

Purchase Order shall be placed through GeM website only.

However, for facilitating inspection, acceptance, material accounting and payment,


corresponding PO shall be parallelly created in ICE, which however shall not be
sent to the seller. The GeM order number shall be entered in the field “Requirement
No.” (Requirement Tracking Number) available at PO line item in ICE for ease of
reference.

As the PO created in ICE is for accounting purpose and all terms & conditions shall
be governed by GeM PO, PO created in ICE is required to be released only and

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signed PO is not required for preparation of QCC, GRV and processing payment.
GeM PO must be uploaded in Documents area in ICE PO.

8.1.2.2.11 Inspection Agency shall be as per Para 21.2 and 21.3 of IMM Manual. Inspection
shall be carried out at Source or destination as specified in the GeM contract and
bid document as per terms and conditions mentioned in General Terms and
Conditions under GeM Portal. Inspection of Chemicals shall be carried out as per
para 21.7 of this manual.

(MM/109/2023 dated 30.10.2023)


(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
8.1.3 Applicability of BEC Formulation Committee and Procurement Evaluation
Committee shall be as per para 10 of this Manual.

Approval from competent authority shall be obtained as mentioned in MM


Manual/BDP.

8.1.4 Mechanism for dealing with Tie-breaking at L-1 position:

If two or more acceptable techno-commercially bidders are found to have quoted


identical lowest bid price-

i) In case of bids for Goods, Reverse Auction shall be conducted, as per General
Terms and Conditions under GeM portal.

ii) In case of Services bids, the agency shall be selected from amongst the L-1
bidders through a Random Algorithm run by GeM system.

8.1.5 Applicable for Automobile category on PAC basis :

As per GeM, only OEM are eligible for enlistment as sellers for procurement of
vehicles under Automobile category. As such, Buyer may go for Direct Purchase
even beyond Rs. 25,000/- for Vehicles under Automobile category.

8.1.6 – Deleted -

8.1.7 Adherence to time norms:

The time for all activities in GeM are specified in the documentation and online
resources available on their portal and these are to be strictly adhered. In case any
process like acceptance of goods is not carried out by the user in GeM within the
prescribed time limit, the system will assume that the goods are acceptable and
automatically carry out the process by itself at the end of the time limit.

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It shall be the responsibility of the involved departments like Purchase section,
QAD, Receipt Section of MM (consignee) and Finance to carrying out immediate
actions to prevent default.

The time norms for various activities stipulated in GeM has been defined in SOP
of GeM Tenders. However, users shall be required to keep track of changes taking
place in GeM by keeping themselves abreast with documentation/ instructions
available on GeM portal and strictly follow the time norms stipulated therein.

8.1.8 Incident Management Policy:

Incident Management Policy provides a framework for identification and handling


of deviations on GeM portal. A deviation can occur either pre-order placement or
post order placement. Work centres will bring cases of deviation/default to the
notice of GeM as per process defined in Incident Management Policy on GeM. The
process of vendor banning described at para 17.5.2 of the IMMM will not be
followed in case of defaults arising out of procurements through GeM.

8.1.9 Reasonability of Rates:

Reasonability of Rates shall be ascertained as per para 14.1.1 to be read in


conjunction with para 8.1.3 above. For this purpose, data, information and tools
available in GeM may also be utilized.

MM/84/2023 dated 27.02.2023


(MM/112/2023 dated 30.11.2023)
(MM/125/2024 dated 23.04.2024)
8.1.10 In case option of increase in Order quantity in terms of GeM provisions is exercised
at the time of placement of order or during the currency of contract, the approval
of CPA for enhanced order value considering the increase in order quantity, shall
be obtained.

However, for cases approved by MCoDP /CoDP, concerned L-1 shall have full
power for approving enhancement in contract value due to quantity increase
exercised during currency of contract.

8.1.11 – Deleted –

8.1.12 Any amendment in MM Manual provisions on procurement through GeM, which


are consequent upon the changes in GeM portal shall be incorporated with the
approval of Head MIND. Further, any exception/ exclusion to the procedure,
process and General terms & conditions (GTC) as published on GeM portal shall
also be made with the prior approval of Head MIND.

8.1.13 Detailed process to be followed for purchase through GeM has been detailed in
SOP for GeM tenders, which is uploaded in MM website. Modifications in SOP

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within the broad guidelines provided in IMM Manual shall be carried out with the
approval of Head MIND as per changes brought out from time to time in the
provisions of GeM policies.

8.2 Open tenders

(MM/31/2018 dated 13.03.2018)


(MM/124/2024 dated 16.04.2024)
8.2.1 Except for situations covered under provisions at para 8.2.4 and 8.2.6, when the
value of the tender is more than Rs.10.00 lakhs, open tenders will be invited. Open
tenders will be advertised through GePNIC-CPPP (https://etenders.gov.in) (for
e-bids).

8.2.2 Tender inviting Section shall ensure that Invitation to Bid published in GePNIC-
CPPP indicates various details/milestones of the tender (such as Tender No.,
starting/closing date of downloading tender document, Brief Description,
completion/ delivery Period, Last date of Receipt of Clarifications for Pre-bid
conference (delete if not applicable), Pre-Bid conference date / time (delete if not
applicable), Techno-commercial bid closing/ opening date/time etc. The closing
date of downloading tender document will be the same as tender closing date. The
NIT published on GePNIC-CPPP should also stipulate that for details of this tender
including corrigendum if any, bidders should logon to https://etenders.gov.in (for
e-bid). In case of exigencies ONGC at its option may decide to extend Techno-
commercial bid closing/ opening date/ time in future which will be posted on the
above referred website for information. Bidders should regularly visit GePNIC-
CPPP for the latest information in this regard.

8.2.2.1 The detailed Invitation to Bid along with complete Tender Documents will be
uploaded on GePNIC-CPPP (for e-bids) by concerned department

8.2.2.2 Amendments to the NIT after its issue should be made where absolutely necessary
and unavoidable.

(MM/10/2016 dated 23.03.2016)


8.2.2.3 – Deleted –

(MM/31/2018 dated 13.03.2018)


(MM/124/2024 dated 16.04.2024)
8.2.3 Open tender bidding documents will be available “https://etenders.gov.in” (for e-
bid) and the bidders should download the tender document from the website only.

8.2.4 Invitation of open tenders will not be necessary in the following cases:-

i. Purchases against ONGC/NICSI Rate Contracts; and

ii. Where the sources of supplies are known and limited

iii. Where vendors for the procurement category have been empanelled

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iv. Where procurement is proposed through Government-e-Market (Gem)

(MM109/2023 dated 30.10.2023)

8.2.5 For invitation of Limited Tender, in cases where open tender is to be invited due
to reasons mentioned at 8.2.4(ii),Pre Qualification Criteria (PQC) should be
prepared by indentor. Indentor should also ensure that the shortlisted bidders
meet the PQC requirement.

There should be minimum of 5 short listed bidders for such type of


procurement/service contract on limited tender value. In case short listed
bidders are less than 5 then approval of one step higher than the CPA should
be obtained. Shortlisting of bidders& PQC made initially would be approved by
the CPA & concerned L-1 will have full power in this regard.

8.2.6 In case, Limited Tenders are proposed to be invited (as against open tender to
be invited based on the value of the tender) and the vendors for the specific
procurement are not empanelled, then the bidders should be identified and
short-listed by the indentor, who should also determine and certify that short-
listed bidders meet the pre-qualification criteria (technical) advised as per the
instructions in vogue. Such short-listing of the bidders and the PQC are to be
approved by the competent authority, as per the provisions contained in para
34. Thereafter, prequalification criteria (technical) need not be incorporated in
the tender.

(MM/04/2015 dated 28.04.2015)

8.2.7 The names and addresses of vendors who meet the shortlisted criterion along
with the PQC must be uploaded on ONGC tenders website. Thereafter, 10
calendar days time will be given to any bidder who meets the PQC but is not
included in the list uploaded earlier, to forward their request for issuance of
tender enquiry, along with relevant documents (to establish their compliance
with the pre-qualification criteria). In this regard, guidelines issued vide circular
No. 01/2005 dated 27.01.2005 appearing in the list of valid circular (which are
now applicable for tenders valuing above Rs. 10 lakhs) should be followed.

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8.3 Electronic Reverse auction

(MM/01/2015 dated 16.03.2015)

8.3.1 Electronic reverse auction is an online real-time procurement technique utilized


by the procuring entity to select the successful submission, which involves the
presentation by suppliers or contractors of successively lowered bids during a
scheduled period of time and the automatic evaluation of bids;

8.3.2 The reverse auction process can be used to replace any price bid evaluation
procedure to determine L-1 like the comparison of sealed price bids.

8.3.3 Applicability: In all the tenders which are proposed to be processed under
Reverse Auction, it should be clearly specified in the BEC that ONGC reserves
right to go for Reverse Auction process or may finalize the tender without
Reverse Auction, if required. However, the decision to conduct Reverse
Auction or not will be conveyed to short-listed bidders prior to opening of price
bid. Procurement by means of an electronic reverse auction should be
engaged under following conditions:

a. Procurement of common goods and services, which are those where


performance and quality characteristics can explicitly be defined beforehand
in the bidding documents using widely-known and unambiguous market
specifications. Services whose characteristics are largely intangible, whose
progress tends to have a degree of unpredictability, and their inputs and
outputs typically vary from project to project (and therefore are hard to define
beforehand) will not be considered a common service.

b. There is a competitive market of suppliers or contractors anticipated to be


qualified to participate in the electronic reverse auction, such that effective
competition is ensured;

c. The tenders for items covered at a) & b) above shall have a provision for
conducting reverse auction. However, after techno commercial evaluation, if
number of technically & commercially acceptable offers are less than
04(Four) for any item (where evaluation is done separately) then no reverse
auction may be conducted for such items (but the Work centers shall take
appropriate decision regarding conducting offline price negotiation, if
required, for such items as per provisions under para-14.2 of MM manual).
Reverse auction shall be conducted for the remaining items. Accordingly the
decision to conduct reverse auction shall be communicated to shortlisted
bidders prior to opening of price bid.

(MM/33/2018 dated 18.04.2018)

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(MM/113/2023 dated 08.12.2023)

8.3.4 Operation: The event will be conducted through ONGC's online bidding
software (SAP SRM), designed to streamline bid negotiations into a real-time
bidding event. The price bids of shortlisted bidders shall be opened on the
same day as the reverse auction event commenced.

In case reverse auction for all items/group in a tender cannot be completed on


same day, Procurement Evaluation Committee may decide to conduct reverse
auction for balance items/groups on next working day and same may be
informed to the bidders.

8.3.4.1 The applicable exchange rate for conversion and the customs duty to be
loaded for each item (for foreign bidder) and basis of evaluation for domestic
bidders (Ex-Works or FOR Destination) shall be conveyed by ONGC to the
concerned bidders prior to commencement of Reverse auction.

8.3.4.2 The price bid data shall be tabulated immediately after opening of price bid
in SRM and evaluated prices shall be worked out in the sample calculation
sheet based on evaluation methodology of BEC and shall be signed by the
Procurement Evaluation Committee members. After tabulation of the priced
bid data, the dealing officer in presence of the Procurement Evaluation
Committee shall confirm the evaluated prices with respective short listed
bidders and feed in system the lowest evaluated price further decremented
by 0.5% as ceiling price.

8.3.5 During the auction:

a. All bidders shall have an equal and continuous opportunity to present their
bids;

b. There shall be automatic evaluation of all bids in accordance with the criteria,
procedure and formula provided to suppliers or contractors ;

c. Each bidder shall receive, instantaneously and on a continuous basis during


the auction, sufficient information allowing it to determine the standing of its
bid vis-à-vis other bids;

d. There shall be no communication between the procuring entity and the bidders
or among the bidders, other than as provided for in subparagraphs (a) and (c)
of this paragraph.

e. Minimum bid decrement of bidders will be 0.5% of the last price entered by
respective bidder.

8.3.5.1 Features of the online event:

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(i) The bidding direction of this event is downward. Bidders cannot raise their bid once
the event has opened and they have submitted a bid.

(ii) Bidders must bid for the complete quantity of each item as quoted in SRM bid. The
prices should be quoted as per the sample calculation sheet provided in the bidding
document.

(iii) Bidders only see their own numeric rank (in ‘Rank only’ format) or the lowest bid and
their own numeric rank (in ‘Rank with L1 price’ format). At no point of time will any
bidder see the names of other bidders, or the prices of bidders other than the lowest
bid.

(iv) The lowest evaluated price (of short listed bidders based on their price bids submitted
initially in SRM) further decremented by 0.5 % (minimum decrimental value in the
RA) shall be the Ceiling price or the maximum permitted starting bid in reverse
auction for all bidders.

(v) A bidder will not be able to see the rank for a lot until the bidder submits an initial bid.

8.3.6 The procuring entity shall not disclose the identity of any bidder during the
auction. No mobile phone, alternate network connection or any other
communication device other than the identified official landline number (to be
communicated to the bidders) shall be allowed in the reverse auction room. The
identified numbers of ONGC for this purpose should be intimated to the bidders
well in advance. Similarly, the telephone numbers of bidders for the authorized
interaction with bidders should be obtained through ‘Bidders’ Response Sheet’.
Also till the reverse auction is over no member of the team conducting RA shall
be allowed to leave the room.

(MM/33/2018 dated 18.04.2018)

8.3.7 Separate auction event shall be held for each item/group evaluated.

This process of a reverse auction event shall initially be held for a period of 30
minutes. In the event of a bid received in the last 3 minutes resulting in change
of prevailing L1 price of the first line item, the period of auction shall get extended
automatically by 5 minutes (for "rank with L-1 price" option) and 10 minutes (for
"rank only" option) from the time of submission of such bid. This process shall
continue till no change in L-1 price of the first line item takes place in last 3
minutes.

The process of reverse auction shall automatically close thereafter.

Reverse auction for next item/group of the tender shall be initiated after closure
of previous auction.

88
8.3.8 Bidders at their own interest should ensure uninterrupted internet connectivity at
their end during the Reverse Auction with necessary backups to take care of any
connectivity problem. However, in case of failure in connectivity of any of the
bidders, the Reverse Auction time will be extended once against request of each
bidder, if the request is received within the auction time. Such extensions shall
each be of 10 minutes and no more than one request for such extension from each
bidder shall be entertained in an Auction. Procurement Evaluation Committee will
be empowered to extend the RA time. The extension of auction time shall be
communicated to all the bidders through system broadcast message and also
intimated telephonically to the bidders who are disconnected from Reverse Auction
at that point of time.

In case no conclusion can be drawn from RA from best bid history or where
Reverse Auction is inconclusive on account of system malfunctioning or break in
internet connectivity at ONGC SYSTEM end, RA shall be re-conducted. In such
scenarios, the dealing offer shall obtain the status from the SRM team of Project
ICE and thereafter Procurement Evaluation Committee shall put up
recommendations to CPA for approval to conduct the RA again.

The procuring entity can suspend or pause the reverse auction, if required. In such
eventuality the duration of the auction shall be extended by ONGC for the period
for which auction was under pause/suspension.

8.3.9 Types of Auction:

(i) ‘Rank with L-1 Price’ bid format:

In “Rank with L-1 Price” bid format, during the process of Reverse Auction, the
short-listed bidders shall be able to see only the current lowest price and their
respective ranks/position during the online bidding process in the system, based
on which they may reduce their prices. This type of auction shall be adopted in
those tenders where neither any purchase nor any price preference is applicable.

(ii) ‘“Rank Only” bid format:

In “Rank Only” bid format, during the process of Reverse Auction, the short-listed
bidders shall be able to see only their respective ranks/position during the online
bidding process in the system, based on which they may reduce their prices. This
type of auction shall be adopted in case of tenders, where purchase preference
(for MSEs) is applicable, so as to take care of purchase preference at the end of
the Reverse Auction.

8.3.10 Procurement Evaluation Committee will decide on choice of the option i.e. “Rank
with L-1 price” or “Rank Only” at the time of short-listing of the bidders depending
on the bidders at that stage who are eligible for purchase preference.

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8.3.11 Purchase Preference:

Under purchase preference eligible bidder whose quoted price is not lowest get an
opportunity to match L-1 price if their quoted price falls within the stated percentage
difference from the lowest quote. If the bidder matches the prices, he gets the order
otherwise the original L-1 bidder gets the order. In Reverse Auction, if the L-1 price
is seen by all the bidders, it is apprehended that the bidders eligible for purchase
preference can position their prices always within the purchase preference range
which would be an unintended advantage. Hence, to facilitate purchase preference
in a fair and transparent manner, the Reverse Auction shall be held in “Rank Only”
format, if any of the short-listed bidders are eligible for purchase preference. After
conclusion of Reverse Auction, if any of the eligible bidder for purchase preference
falls within the specified limits for purchase preference, such bidder will get
opportunity to match with L-1 price.

8.3.12 Procurement Evaluation Committee members shall remain on the spot till the
completion of the Reverse Auction process.

8.3.13 Apart from the participating bidders, the RA shall be visible while in progress
to ONGC only through one user login. i.e. user login of Dealing Purchase officer
who shall display the RA to Procurement Evaluation Committee members. The identity of
the bidders shall not be disclosed to Procurement Evaluation Committee and the
dealing officer. Even the prices of bidders shall not be visible to the dealing officer and
the Procurement Evaluation Committee at the time of Reverse Auction in case of “Rank
Only” bidding.

8.3.14 In case of a tie during auction i.e. two bidders entering same lowest price, the
bidder who enters the prices first in the system would be taken as L-1 and the
other bidder would see their ranking as L-2.

8.3.15 On completion of Reverse Auction, the history of Reverse Auction shall be signed
by the dealing officer and Procurement Evaluation Committee members. In case
of non-availability of Procurement Evaluation Committee members due to any
contingency, they should nominate suitable officers to represent them to witness
the Reverse Auction. However, Procurement Evaluation Committee members
would sign the proceedings afterwards.

8.3.16 After completion of online event of Reverse Auction within 24 hrs, the bidders
would re-submit breakup of their final quoted evaluated price as per relevant
appendix of sample calculation sheet so as to enable ONGC to award the
purchase order/contract. Bids of those bidders who fail to provide cost break-up
sheet or adhere to prices quoted during the online event will be rejected and the
bid bond / EMD of such bidder shall be forfeited. However, in such case of break
up, the prices of any of the items shall not be increased above the prices submitted
in SRM.

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8.3.17 For the purpose of e-procurement and Reverse Auction, the dealing officer is the
executive handling the case and carries out all actions like publishing the tender in
e-tender portal, uploading ceiling prices for Reverse Auction and carries out all
activities connected with processing of the case both in manual & e-procurement
modes.

8.3.18 In case of no response from any bidder in reverse auction, the original evaluated
L-1 price will be considered for further action.

8.3.19 The case shall be processed further for award or otherwise based on L-1 prices
received at the end of Reverse Auction. Price reasonability will still need to be
established even though the bidding process is through Reverse Auction and
ONGC will reserve the right to negotiate with L-1 bidder as per Guidelines.

(MM/112/2023 dated 30.11.2023)


8.3.20 The Reverse Auction shall be implemented first on pilot scale in five high value
tenders of Corporate MM and based on the outcome of these five cases, PMC in
consultation with Corporate MM shall put up their recommendation to MCoDP for
further extending reverse auction to other tenders in ONGC.

8.3.21 With the assistance of ICE team, training for vendors shall be facilitated to meet:
a. Online help documentation for bidder registration to SRM portal including
process of obtaining digital certification.
b. Training to all eligible/interested bidders, if required, on the Reverse
Auction process prior to conduct of Reverse Auction.

8.3.22 The due date and time for price bid opening and conducting the event of Reverse
Auction should be intimated well in advance to the bidders, through the System.

8.3.23 For the cases to be processed under RA, the CPA will be with reference to
sanction value or the original evaluated value of L-1 bidder before the RA process,
whichever is higher.

8.3.24 Dispensation from e-RA:

After invitation of tender, depending upon the response of the bidders during pre-
bid conference (if applicable), if it is felt that it would not be feasible to go for RA
process in the tender, then in that case approval for dispensation from RA process
would have to be obtained from the CPA giving detailed reasons as to why RA
cannot be adopted. Concerned L-1 shall have full powers in such cases.

8.3.25 Cases pertaining to purchase on single tender basis from OEM/OES/PAC basis
and tenders for LSTK contracts shall be exempted from RA process.

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8.4 Limited Tenders

8.4.1 Limited tenders would be mode of tendering for purchases upto Rs.10.00 lakh
or if limited number of suppliers are available or if vendors for the category of
procurement are empanelled

8.4.2 <Applicable if vendors have been empanelled for category of procurement>

Limited tenders to empanelled vendors can be done as per empanelment


procedure If Quality and cost based selection (QCBS) is proposed to be used,
additional documents needed specifically in excess of documents submitted for
prequalification can be requested for quality evaluation along with price bids.

(MM/31/2018 dated 13.03.2018)


8.4.3 For procurement through limited tender, the tender need not be advertised
through ONGC tender portal “tenders.ongc.co.in”.

(MM/10/2016 dated 23.03.2016)


8.4.4 For limited tenders upto Rs.10 lakhs, MM department / tender processing group
may send enquiries to vendors known to ONGC. The enquiries will also be sent
to the registered vendors as defined in para 17.1 based on documents submitted
for specific item/service/category of procurement. MM department / tender
processing group at each work center shall make necessary arrangements for
registration of vendors as per para 17.1, keeping in view of the requirements of
the work center. Guidelines under para 8.2.7 on formulation of PQC and use of
website in tender shall not be applicable for limited tenders covered under this
para.

8.4.5 Enquiries should be sent to as many firms as possible to ensure competition.


The list of selected suppliers, to whom enquiries have to be sent, will be
approved by the competent purchase authority. The minimum number of
inquiries to be floated will be as under:-

Value Number of enquiries

For tenders fromRs.1,00,000/- to Rs 5


5,00,000/-

For tenders from Rs.5,00,001/-to 7


Rs.10,00,000/-

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8.4.6 For tenders valuing less than or equal to Rs.10 Lakhs, when the number of
vendors known to / registered with ONGC is less than the required, the enquiry
may be sent to all such vendors after obtaining the approval of an officer one
level higher than the Competent Purchase Authority.

8.4.7 Procedure for purchases upto Rs.10 lakh:

The dealing officer will float limited tender enquiries, as per para 8.4.3, 8.4.4,
8.4.5 above.

After receipt of offers within the closing time and date, the offers shall be opened
by the nominated opening officers from Finance & user group. After opening,
the offers will be handed over to the concerned dealing officer who shall tabulate
the data from the offers in the comparative statement, to be prepared within two
working day. In all cases where technical evaluation is involved, the duplicate
copy of the offers is to be referred within one (1) working day to the indentor for
technical comments. The indentor [not below E-1] shall furnish the technical
comments immediately, which in no case shall exceed five working days.
Subject to provisions of clause 34of this Manual, the approval of CPA as per
BDP will be obtained before placing order (within 10 working days from opening
of bids) without holding Procurement Evaluation Committee.

Note: Provisions 8.4.4 to 8.4.7 are not applicable if vendors have been
empanelled for category of procurement

8.4.8 In case of limited tender, the question of post tender technical rejection is not at
all desirable, except when technical rejection of bids is due to deviations from
tender specifications / scope of work. Hence, authorities approving the selection
of such bidders should be very meticulous.

NOTE:

ICE team is in the process of creating necessary provisions for online registration
of bidders for various categories of items for procuring the same against limited tenders.
Till the time the said process is completed, respective In-charges of MM/ Level –II in case
of user departments are advised to ensure that following guidelines are meticulously
followed:

(i) For issuing Limited Tender enquiry, an items / category wise list of prominent
and reliable firms possessing Permanent Account Number (PAN) and Sales
Tax / CST / VAT Registration number (as applicable) will be maintained in a
register by conducting market survey, web search, checking information
about suppliers on SAP system etc.
(ii) Aforesaid list shall be reviewed and if necessary updated on half yearly basis.
However, name and addresses of the prospective vendor shall be added in
said list as and when necessary.

93
(iii) Officer(s) nominated by respective Level-II of user department /I/c MM for
maintaining such list shall obtain approval of I/c-MM/ Level-II in case of user
department, for finalizing / updating said list of vendors.
(iv) Proper record in respect of the name, addresses and source of information of
the listed vendors shall be maintained.
(v) Any case for de-registration of firms shall require approval of I/c-MM/
Level-II in case of user department.

8.5 Purchase on single tender

8.5.1 Key Executives must ensure that the cases are processed in time for
procurement of goods/services to meet the operational requirement, so that
extension/award of contracts on nomination basis is avoided. Due diligence
should be carried out before placing the order on nomination basis and award
of cases on nomination/extension of cases must be brought down to bare
minimum.All out efforts should be made to expeditiously accord expenditure
sanction after administrative approval and the cases should be processed
well in advance considering the time taken for various approvals and time
taken by MM for processing the tender including mobilization period, if any,
to avoid situation forcing award on nomination basis.
(MM112/2023 dated 30.11.2023)
8.5.2 Wherever, the procurement is to be carried out on PAC/Nomination basis
prior approval of concerned L-1 shall be obtained bringing out the detailed
justifications for resorting to such PAC/Nomination basis. The reasons for
resorting to particular vendor/service provider should also be explicitly
brought out.

8.5.3 All proposals, where PAC/Nomination approvals have been obtained from
the competent authority and safety and operational aspects are involved, are
to be finalized on priority with best efforts to negotiate with bidder for obtaining
possible price reductions. It must be ensured that such items purchased
against PAC are consumed/put into use within one year from the date of
receipt of the material.

8.5.4 In case of nomination cases, the question of post tender technical rejection
is not at all desirable. Hence, authorities approving the selection of such
bidders should be very meticulous.

8.5.5 Procurement Evaluation Committee should specifically bring out and


deliberate the following while seeking approval for award on nomination
basis:

a) Reasons and justification for award on nomination basis instead of


competitive bidding.
b) Reasons and justification for recommending a particular vendor/service
provider for nomination contract.

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c) Reasonability of rates to be explicitly ascertained/confirmed.

8.5.6 Each contract proposed to be awarded on nomination basis is a separate


contract and CPA should be determined as per the BDP based on value of
individual contract.

8.5.7 Purchase of non-proprietary items

Purchase of non-proprietary items, on single tender basis, will be resorted to


only in the situations of emergencies like flood, fire, civil disturbances, war,
cyclones, blow out and operational break down and/or reliability of
material/equipment/services as per provisions under para 8.10. Detailed
justification for resorting to emergency / operational break down/reliability of
material/equipment/services should be recorded at the time of processing the
proposal for approval of competent authority as per powers delegated under
BDP.

8.6 Hiring of services of Domain Experts/Specialists/Consultants:


(MM/112/2023 dated 30.11.2023)
a. Domain Experts are individuals/universities/institutes with established
reputation for specified knowledge and experience in specific areas of
Science and Technology. It is neither feasible nor desirable to engage such
individuals/universities/institutes through tenders. Therefore,

i. Each Director shall constitute a Technical Team to identify Domain


Experts in relevant disciplines,

ii. The identified Domain Experts shall be contacted by the Director for
acceptance of retainer ship followed by empanelment, and

iii. In case the expert is not empanelled, the concerned Director may
request the services of particular Domain Expert for specific studies and
tests.

iv. For cases involving Collaborative Research, MoU should be the


preferred way of entering into contract. MoU shall be signed by
concerned Director following in principal approval from MCoD.

b. Tender procedure (limited or open) could also be applied to the selection of


consultants and specialists where quality and cost weights shall be
determined based on importance of technical competence to the success of
the assignment/project as explained in QCBS section.

c. In the areas where ONGC institutes are likely to have overlapping


capabilities, the following exercise necessarily be carried out:

95
i) Capability of ONGC institutes be ascertained to know if they are in a
position to provide the in-house expertise for the particular project.

ii) If not so, do they have names of agencies to suggest to approach for
such expertise, to have possibility for adequate competition explored,
before opting in for award of work on nomination basis

8.7 Petty purchases

(MM/44/2018 dated 30.11.2018)


8.7.1 Subject to the provisions under para 8.1, purchase upto Rs.25,000.00
(annual cap as per BDP) at a time may be made without formal enquiries or
without obtaining hand quotations by User Departments themselves. Such
purchase shall be resorted to only in case item either not available in GeM or can’t
be procured through GeM as per provisions under para 8.1 of the IMMM.

8.7.2 Proper safeguards/deterrence need to be made to avoid in fructuous


expenditure on purchase of petty items like stocks covered under kits and
liveries. In order to obtain competitive &comparable rates for procurement of
these items, standardized specifications notified by HR-Corporate Policy
Group from time to time should be meticulously adopted. Further, as far as
possible while procurement of such items, it should be ascertained that the
items being procured are manufactured by the companies possessing
relevant IS certificate issued by Bureau of Indian Standards (BIS).

8.8 Purchase against Hand Quotations

(MM/44/2018 dated 30.11.2018)

8.8.1 Subject to the provisions under para 8.1,Purchases above Rs. 25,000.00 up to
Rs. 100,000.00 shall be made on hand quotation basis by User Departments
themselves (subject to annual cap as per BDP) by obtaining at least three hand
quotations for all types of procurement. A list of prominent and reliable local firms
will be maintained by all concerned. Hand quotations will be collected on rotation
basis whenever there is scope for rotation. A certificate will be given by the Officer
making such purchase that hand quotations were obtained on rotation basis. The
names and addresses of the firms from whom quotations are obtained will be given
in the certificate. Where the number of dealers is limited i.e. less than six(6), rotation
system need not apply.

Such purchase shall be resorted to only in case item either not available in GeM or
can’t be procured through GeM as per provisions under para 8.1 of the IMMM.

8.8.2 Purchase from State Emporium / Govt. Deptt /Undertakings

Whenever items are available in State Emporium / State Govt. or Central


Govt. Undertakings, purchases are to be made from them only and in those

96
cases, the requirement of obtaining three hand quotations will not be
necessary.

8.9 Purchase through board of officers


(MM/112/2023 dated 30.11.2023)
8.9.1 Purchase by a board of Officers will be resorted to only in exceptional
circumstances when the materials / services / works are either required
urgently to overcome an exigency or because the indentor is not able to give
firmed up / detailed specifications (necessitating on the spot decision based
on the availability in the market) so that procurement cannot be made under
the normal purchase procedure, provided further that prior approval of the
concerned L-1 executive, is obtained and furnished along with the Purchase
Indent, before resorting to purchase through a board of officers. Board
Purchase should not be resorted to for CSR projects and for award of contract
of long duration.
(MM/114/2023 dated 20.12.2023)
8.9.2 Concerned Level-1 executive is empowered to constitute a Board of Officers
comprising of Executives as below:

Constitute a Board Level of Rep. from Level of Rep. Level of


of Officers MM (for cases dealt from Finance Rep. from
comprising of by MM) / Tender Indenter
Executives as Processing
below: CPA Group(TPG)
(As per BDP)
Level-2 and above Head MM / L2 from I/c Finance L2
TPG
Level-3/E6 L-3/E6 L3/E6 L3/E6
Level-4/E5 L-4/E5 L4/E5 L4/E5
E-4 E4 E4 E4
E-3 E3 E3 E3
E-2 E2 E2 E2

Proceedings of such purchase boards (comprising of executives of


competent level) will not need approval of any authority, since spot decisions
are required. However for cases beyond the powers of the board, the case
shall be put up to the competent authority for approval.

8.9.3 If for any reason it is not possible to constitute a purchase board with
competent officers, the board may be constituted with an officer of the next
below rank. However, the reasons should be recorded in writing.

97
8.9.4 For carrying out the purchase, the board of officers shall explore the local
markets as first priority, before seeking offers from outside the city/town.
Further, the board of officers shall obtain as many quotations as possible so
as to determine the reasonability of rates. In case the supplier(s) do not agree
to give the hand quotations, this fact will be recorded by the board of officers
in their proceedings.

(MM/52/2019 dated 13.11.2019)


8.9.5 The board of officers will decide on waiver of EMD & SD for board purchases.
The board also has full powers to hold negotiations.

The same Board will resolve all the post contract issues encountered during
execution of the contract. If some member of the Board is not available due
to any reason, a substitute member may be nominated by the Competent
Authority for nominating Board members.

8.9.6 Simpler terms and conditions (similar to Appendix 3 of this manual for goods
procurement) are to be used for purchase through board of officers to enable
efficient functioning of this procurement method if the cost estimate is below
Rs. 10 lakh. In all other cases, terms and conditions will be decided according
to cost estimate.

8.9.7 In case petty items like socks covered under kits & liveries are being procured
through board of officers due to the reasons that the indentor is not able to
give firmed up detailed specifications (necessitating on the spot decision
based on the availability in the market), then, in such cases, items of reputed
brands should be purchased as far as possible. Further, wherever necessary
quality check of these items should be ensured by the work centre itself,
under consultation with QAD, rather than depending on self-certification by
bidders.

8.9.8 The board of officers will, if necessary, be authorised to make purchases from
market on cash basis.

8.10 Emergency purchase

(MM/05/2015 dated 01.06.2015)

8.10.1 Emergency purchase (including hiring of services on emergency), directly by


user department without reference to Purchase Wing (including items
indicated under para 1.3.1 and 1.3.2 which are procured centrally by
Corporate MM, Delhi) shall be resorted in the situations of emergencies - like
flood, fire, civil disturbances, war, cyclones, blow out & fire, operational break
down or likelihood of operational breakdown where it is necessary to restore
normalcy of equipment, machinery or vehicles and the urgency does not
permit following the normal methods of purchases. In such cases standard
terms & conditions of tender documents may not be applied.

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Special Emergency purchase in case of blow out is delegated as per actuals
to L-1, subject to conditions stipulated at BDP Chapter 25.1.

8.10.2 Detailed justification for resorting to such emergency purchases should be


recorded at the time of processing the proposal for approval of competent
authority as per powers delegated under BDP.

8.10.3 Reporting of single tender cases on nomination basis would be done as per
the provision contained in this Manual and instructions issued from time to
time.

8.10.4 Quantity to be purchased shall be restricted to the minimum essential and the
purchase shall be accounted for immediately by submitting Pre-receipted
indent along with the Inspection Report, Invoice, Delivery Challan and
Purchase Order, to the Materials Management (Stock) for raising GRV.

8.10.5 Concerned Indentor / User department shall ensure sufficient stock of critical
spares and the materials for which repeated emergency purchases have
been made, by following normal methods of purchase through MM
department.
(MM/112/2023 dated 30.11.2023)
8.10.6 MM department in all work centers need to ensure that the items purchased
under emergency purchase are issued and certified by user that they have
been put in utilisation. Delay in consumption of such items, if any, are to be
apprised by the concerned Key executive. to CPO, with reasons.

8.11 Expression of Interest(EOI)

8.11.1 This method shall be used when the indenting group is not reasonably sure
on the specifications/scope of work/source of supply and would like to take
the help of prospective bidders in finalizing the same. Approval of the
concerned L-1 would be required for resorting to EOI route. EOI is not a
tender and shall be used by User group to explore market conditions

8.11.2 Identification of likely Sources

8.11.2.1 Enquiry for seeking ‘Expression of Interest’ from bidders should be published
in at least one national daily and the ONGC tender web site. The web site
address should also be given in the advertisements. Enquiry for seeking
Expression of Interest should include in brief, the broad scope of work or
service, inputs to be provided by ONGC, eligibility and the pre-qualification
criteria to be met by the bidder and bidder’s past experience in similar work
or service.

8.11.2.2 The bidders may be asked to send their comments on the objectives and
scope of the work or service projected in the enquiry. Adequate time should
be allowed for getting responses from interested bidders.

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8.11.3 EOI Document

8.11.3.1 ONGC shall prepare an EOI document. The EOI document shall contain
following information:

(i) Invitation to EOI: It shall include a copy of the advertisement whereby


bidders are invited to submit their EOI.

(ii) Brief about objectives and scope of work: This may include brief
description about objective of carrying out the assignment, broad scope of
work and expected deliverables of the assignment. This may also include
the place of execution of the assignment.

(iii) Instructions to the Bidders: It may include instructions regarding nature


of job; submission requirement; requirement of bid processing fees; if any;
last date of submission; place of submission; and any related instruction.

(iv) Formats for submission. This section shall specify the format in which
the bidders are expected to submit their EOI.
(MM/113/2023 dated 08.12.2023)
8.12 Placement of purchase order against ONGC Rate Contract
Purchase orders against ONGC Rate Contract will be placed by concerned
User Section of the Work Center without MM support.

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9 System of tendering

9.1 Two bid system

9.1.1 Two Bid system will be compulsory for all the tenders pertaining to procurements /
works valuing above Rs.10 lakhs except cases pertaining to OEM/ OES/ PAC/
Single Tender Nomination.

9.1.2 Under Two Bid System the bidders will be asked to submit 'Techno-commercial'
and 'Price' bids separately in sealed cover duly super scribed and both the offers
placed in one single sealed cover, at a central place. For this purpose, suitable
labels in different covers will be provided with the bidding documents.

9.1.3 The techno-commercial bids will be opened first and evaluated.

(MM/48/2019 dated 07.02.2019)


(MM108/2023 dated 30.10.2023)
9.1.4 After techno-commercial evaluation, bidders, whose bid have been rejected, shall
be informed about the reasons for rejection of their bid through official e-mail
id mentioned in the bid. Such bidders can review reason for rejection of their bid
and raise a one-time representation to challenge rejection for any incorrect
disqualification within 2 days of such intimation. Work centers will have to respond
to all such representation before opening of price bids.

Techno-commercially acceptable bidders will be notified (by fastest mode like


company’s official e-mail, indicated in the offer) for the date of opening of priced
bids in public, allowing a period of not exceeding 2 working days, depending upon
the urgency of requirement and location of bidders, so as to enable such bidders
to participate in tender opening, if they so like. In order to facilitate the bidders to
know the details of other bidders short-listed for opening of price bids, besides
mentioning the date, time and venue of the price bid opening, the names and
particulars of all the bidders being invited to participate in the price bid opening
should also be indicated in one common letter which should be addressed to all
the bidders who have been short-listed for price bid opening. For this purpose,
identified fax/ official e-mail of the firm indicated in the offer is to be used. The
priced bids will be opened by Tender Opening Officers who are already detailed
for opening of tenders as per provisions of para 12.24 of the Manual. For
item/group-wise tenders, price bids should be sealed individually for items/groups
and placed within the final price bid envelope submitted

9.1.5 Price bids, which remain, unopened with ONGC, are to be returned to the
concerned bidders within a period of 5 working days of receipt of Performance
Guarantee Bond (s) from the successful bidder (s).

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9.2 Single bid system

9.2.1 Single Bid system shall be followed for all the tenders pertaining to
procurements / works/ SERVICES valuing upto Rs.10 lakhs except cases
where QCBS methodology of tender evaluation is used.

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10 Tender related officers and committees

(MM/113/2023 dated 08.12.2023)


10.1 Formation of BEC Formulation Committee and Procurement Evaluation
Committee

(MM/60/2020 dated 13.11.2020)


(MM/113/2023 dated 08.12.2023)
10.1.1 No BEC Formulation Committee or Procurement Evaluation Committee (PEC) will be
held for cases valuing up to Rs. 10 lakhs. However, all procurement cases (including
finalization of Rate Contracts), valuing above Rs. 10 lakhs, will be handled by BEC
Formulation Committee or PEC, as applicable. Further, irrespective of the value of
the case, placement of orders against ONGC Rate Contracts and also for emergency
purchase under chapter 25 of BDP shall be processed by the Indenting/User Section
directly, without referring to BEC Formulation Committee or PEC. For award of
contract against nomination cases irrespective of the value BEC Formulation
Committee or PEC shall comprise of representative of Indenting/User Section and
Finance Section at respective level. These committees are also not required for
OEM/OES cases up to Rs. 10 lakhs.

10.1.2 Formation of BEC Formulation Committee

10.1.2.1 BEC Formulation Committee will have one member each from Finance & MM for the
tender being processed by MM Department. For the tenders being processed by
other than MM Department, one member each from Indenting/User Section &
Finance shall be part of BEC Formulation Committee. For centralized procurement
of Material/Services/LSTK projects under CPD, MM and Finance member will be part
of respective Group under CPD whereas for procurement at Work Centre, MM and
Finance member will be from the Work Centre.

BEC Formulation Committee will be involved in the formulation of BEC after receipt
of Indent and upto opening of Techno-Commercial Bid. It will be involved in
finalization of Commercial Tender Conditions (i.e. Commercial BEC, Special
conditions of Contracts (commercial), Price Bid format and payment schedule etc.).
The Committee will also attend the Pre-bid Conference (if applicable) and also
respond to any commercial and financial queries of vendors during pre-bid or
otherwise. The Committee will submit the recommendation to CPA for obtaining the
approval of various tender conditions and for invitation of tender.

10.1.2.2 Formation of Procurement Evaluation Committee (PEC).

Constitution of PEC will be similar to BEC Formulation Committee. This Committee


will be involved in all the stages after opening of Price Bid upto award of contract
and also for Post Contract issues subsequently. After price bid opening, each
member of the PEC shall in the first meeting itself give an undertaking (as per
proforma enclosed at Appendix 11 that he/she does not have any personal interest
in the Companies/Agencies participating in the tender process and that any change

103
in status resulting in creation of personal interest during tender processing shall also
be declared by the concerned members of PEC, as and when it arises during tender
processing.

10.1.2.3 For various stages between opening of Techno-commercial bid and opening of
Price Bid, approval of competent authority shall be obtained through vertical note,
without routing through concerned Nodal Technical Agency (for cases under CPD)/
concerned Indenting Section (for other cases) or the Finance Department.

10.2 Convening of BEC Formulation Committee and Procurement Evaluation


Committee

10.2.1 The concerned Materials Management (CPD/Work Center) /Tender processing


Group will convene the meeting of these committees.

10.2.2 <Applicable after IT infrastructure is available>The committee meetings will happen


virtually over video conference whenever possible in order to avoid hassle of
convening all members in one location. Also, all briefs and documents will be
available online and any approvals/recommendations of these committees can be
done online.

10.3 Brief for and level of BEC Formulation Committee and Procurement Evaluation
Committee

10.3.1 Constitution of BEC Formulation Committee and Procurement Evaluation Committee:

The following levels of MM/Tender Processing Group & Finance officers shall
constitute BEC Formulation Committee and Procurement Evaluation Committee:

Sl. CPA Level of Rep. from MM/ Tender Level of rep. from Finance
No. (As per BDP) Processing Group
1 L-I and above Head MM-CPD/L-II of Tender Head Finance-CPD/Head or
Processing Group (for tenders being I/c Finance at Work Centre
processed by other than MM) / Head
MM (at units)

2 Head MM-CPD/ Second Level MM-CPD/L-III of Second Level Finance-CPD


Head MM (at Tender Processing Group (for or Work Centre
units)/L-II tenders being processed by other
than MM) / Second Level MM (at
units)

3 Second Level Third Level MM – CPD/ L-IV of Third Level Finance-CPD or


MM-CPD/L-III/ Tender Processing Group (for Work Centre
Second Level tenders being processed by other
MM (at units) than MM) / Third Level MM
(at Units)

104
4 Third Level MM –
CPD/ L-IV / Third
Level MM
(at Units)

Tender
value>Rs.25 E4 E4
Lakhs

Tender Value E3 E3
upto Rs.25
Lakhs

Note:

(i) Under Central Procurement Department, respective Procurement Group Heads


will act as Head MM-CPD and respective Procurement Segment Incharges will
act as Second Level MM-CPD. At Work Center/Unit level, designated In-charge
MM will act as Head MM.

(ii) For cases where CPAs are below L-I, Head/ I/c MM, Head/ I/c Finance or L-II of
Tender Processing Group shall nominate the respective member for the
committees.

(iii) 2nd and 3rd Level Officers from Finance and MM Deptt shall be identified by I/c
Finance, I/c MM respectively with the approval of concerned Level I Executive.

(iv) Deleted

(v) The level of Committee members and CPA will be with reference to sanction
value or tender value whichever is higher. However, after opening the price bids,
if the evaluated price of lowest bid / bids is higher than the tender value and the
tender accepting power is not within the power of original CPA, then the CPA
and level of Committee members will be raised to appropriate higher level.

(MM/114/2023 dated 20.12.2023)


For MCoDP /CoDP level cases, in case total value of contract(s) to be awarded
against the tender falls within powers of CoDP/concerned L-1 (irrespective of
sanction/tender value), approval for award of contract (s) shall be obtained from
CoDP/ concerned L-1.

(vi) If the required level of Committee member is not posted or on leave / foreign tour
for at least 5 continuous calendar days at a Work Centre then the committee
member will be of the next lower level available or as nominated by Head/ In
Charge MM, Head/ In Charge Finance, L-II of Tender Processing Group. Thus,

105
an alternate committee member should step-in only when the regular committee
member is either on leave or on foreign tour for at least 5 continuous calendar
days.

However, in case of extreme urgency, which shall be recorded in file, alternate


Committee member may be nominated with the approval of L-1 Executive, even
when Committee member is on leave / foreign tour for less than 5 continuous
calendar days.

(vii) Deleted
(viii) Deleted
(ix) Deleted

(x) For OEM/OES/PAC cases where tender value is upto 2.5% / 0.5% of open tender
acceptance powers of Level-1 executive, Committee member shall be at L-3/ L-
4 level (from concerned Indenting Department/User Department) and Second
level/ Third level of Finance.
Where CPA is L-1 executive, recommendations of committee shall be put up for
approval through Level-2 executive of concerned Indenting Department/User
Department.

For nomination cases falling under para -24.1 (e) of the BDP 2015, where tender
value is upto 0.5% of open tender acceptance powers of L-1 executive,
Committee member shall be at L-3 level (from concerned Indenting
Department/User Department) and Second level of Finance. In such cases,
committee recommendations shall be put upto CPA (Level-1 executive) for
approval through Level-2 executive of concerned Indenting Department/User
Department.

10.3.2 The concerned dealing officer will prepare brief for perusal of members of
Committee wherein complete details of case will be brought out. Such a brief,
duly signed/submitted online, will be given to members of Committee well in
advance of the meeting. This will, however, in no way, dilute the responsibilities
of the Committee.
(MM/113/2023 dated 08.12.2023)
10.4 Evaluation of bids by Procurement Evaluation Committee and preparation
of Committee proceedings

10.4.1 Procurement Evaluation Committee will examine the bids to prepare its
recommendations for submission to the authority competent to accept the tender.
Where a higher bid is recommended under exceptional circumstances adequate
reasons in support of recommendation will be recorded

106
10.4.2 It will be ensured by both the Committee members that proceedings of
Procurement Evaluation Committee are signed/digitally approved immediately
on completion of the meeting, not exceeding 3 days from the date of the
meeting.

Bids should be evaluated strictly in accordance with the BEC and tender
conditions without allowing any relaxation.

(MM/26/2017 dated 21.06.2017)


10.4.3. The bid prepared by the bidder and all correspondence and documents relating to
the bid exchanged by the Bidder and the Purchaser, shall be written in English
language. Supporting documents and printed literature furnished by the Bidder in
another language should be accompanied by an accurate translation of the
relevant passages in English duly authenticated by local Chamber of Commerce
of bidder’s country

(MM/113/2023 dated 08.12.2023)


10.4.4 Processing of bids would be finalized as per the stipulated time schedule however
in case finalization of bids has taken more time than the proper delay analysis
would be done by Procurement Evaluation Committee.

10.5 Acceptance of recommendations of BEC Formulation Committee/


Procurement Evaluation Committee

10.5.1 All recommendations/briefs of the BEC Formulation Committee/ Procurement


Evaluation Committee and note for obtaining approval of competent authority will
be submitted through DISHA portal.

10.5.2 Any parallel physical files and approvals thereof will not be considered valid and
should not be maintained.

10.5.3 Competent Purchase Authority can either approve or disapprove the


recommendations of the Committee or give written directives for reconsideration
of its recommendations.
(MM/112/2023 dated 30.11.2023)
(MM/10/2016 dated 23.03.2016)
10.5.4 Determination of CPA in following scenarios; (i) in cases where Committee
member becomes CPA by virtue of becoming officiating CPA due to original CPA
being on tour/leave and (ii) when the Committee member becomes CPA on
promotion/elevation, and the recommendation of Committee was still to be
accepted.

In case of scenario at (i) above, such recommendations, if time permits may be


put up to the original CPA after his joining.

In cases of scenario at (ii) above and also when the time does not permit for
action as envisaged in the scenario at (i) above, Committee recommendations

107
should be sent to one level higher authority than the original CPA for acceptance.
However, concerned L-1 shall have full and final powers.

(MM/112/2023 dated 30.11.2023)


(MM/125/2024 dated 23.04.2024)
10.6 Management Committee of Directors – Procurement (MCoDP)

10.6.1 Proposals to ‘Management Committee of Directors – Procurement (MCoDP)’

a. Issue relating to any major modification in the Materials Management policy


of ONGC may be referred to the MCoDP [consisting of full time Directors as
members and Chairman & CEO/CMD as Chairman of the Committee] for its
advice / decision. However, before reference to MCoDP is made,
endorsement of HEAD MIND will be obtained.

b. In all cases exceeding powers of Committee of Directors – Procurement


(CoDP), after price evaluation of short-listed bidders, purchase approval of
Management Committee of Directors – Procurement (MCoDP)’ will be
obtained, after endorsement by concerned L-1.

All cases exceeding powers of L-1, after price evaluation of short-listed


bidders, shall require approval of Committee of Directors – Procurement
(CoDP) comprising of three Directors i.e. i) The concerned Functional
Director, ii) Director (Finance) and iii) One additional Director in the following
order (Director (T&FS) / Director (Production)/ Director (Exploration)/ Director
(HR) / Director (S&CA)) who is not the concerned Functional Director. In case
of Director (Finance) being the concerned Functional Director, two additional
Directors, in the above given order, shall be the members of the CoDP.
Further, if the CoDP is not able to arrive at any decision, the case may be
referred to the MCoDP. Such cases will be submitted to CoDP after
endorsement by L-1 executive.

c. Approval of MCoDP will also be necessary for cases involving enhancement


in contract/ target value, falling beyond the powers of L-1 as per BDP item
no. 22.4.iii,. However, all endeavours should be made to avoid such
situations.

d. Submission of fait-accompli cases to MCoDP/CoDP for approval should be


avoided. As soon as it becomes evident that a contract which was estimated
within CoDP/L-1 Level powers is likely to exceed in value, a proposal should
immediately be submitted to MCoDP/CoDP (as the case may be) for
approval without waiting until the value actually exceeds this limit. Although
it is felt that such eventualities should occur only in exceptional cases, where
ever such situation arise, the work center must ensure that :-

(i) There is no drastic/major change in scope of work.

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(ii) Proper budget and expenditure sanction is available.

e. Agenda brief of all MCoDP/CoDP proposals against a tender must begin with
information regarding compliance to tender initiation/tendering/processing
time norms supported by reasons for delay (if delayed) and chronology of
events.

f. Agenda brief for submission to MCoDP/CoDP should be complete in all


respects, strictly in accordance with the provisions of MM Manual and the
instructions issued from time to time on the subject, covering all critical issues
and important aspects in brief; viz. (i) Chronology of Tender processing and
justification for delay, if any, (ii) Sanction/estimation, Justification for
nomination & BEC approval details, (iii) BEC compliance information of short
listed bidders and Reasons for rejection of bids, if any (iv) Price evaluation
and reasonability of prices(v) Representations received, if any etc.

(MM/74/2022) dated 21.06.2022


(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
(MM/125/2024 dated 23.04.2024)
g. A ‘Summary Matrix for MCoDP/CoDP agenda’ should be incorporated in the
agenda brief and signed by the Procurement Evaluation Committee and the
Key Executive.

The format for ‘Summary Matrix for MCoDP/CoDP agenda’ has been issued
vide PMC circular 16/2022 (as amended).

Any changes / modifications to the ‘Summary Matrix for MCoDP/CoDP


agenda’ shall be effected through PMC with approval of HEAD MIND.

h. The proposals to MCoDP/CoDP should have endorsement of the concerned


L-1.

i. Proposals with respect to BEC should be referred to MCoDP only in case of


any deviation/departure from last approved / standard BEC, policy and
specific instructions, indicating only the changes/modifications sought in
BEC with respect to said deviations, with proper justification.

j. The presentation of the case/proposal in the MCoDP/CoDP meeting should


be done by the concerned Key Executive who should come prepared to
present the details along with all relevant documents/flies related to the
tender/proposal.

k. The agenda brief for MCoDP/CoDP should be sent to MCoDP Cell well
before the expiry of validities keeping in view that sufficient time is available
to the MCoDP Cell for examination of the case.

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l. Over rushing proposals in the eleventh hour and tabling the agenda brief
directly in the meeting without routing through MCoDP Cell should be
avoided. Only in case of urgencies, the concerned L-1 may forward the
agenda brief to MCoDP Cell for tabling the proposal in the next scheduled
meeting & circulation on urgency basis recording the reasons for such
urgency.

m. All MCoDP/CoDP level cases requiring Legal clearance/opinion should be


submitted for consideration to MCoDP/CoDP, only after obtaining Legal
clearance/opinion from Chief-Legal Services, Corporate.

n. Vital and critical issues should be properly deliberated by Procurement


Evaluation Committee and highlighted such issues should be deliberated in
the body of the main MCoDP/CoDP agenda and same should not be simply
annexed as Annexures/Exhibits, which are meant for cross reference
purpose.

o. Agenda briefs being submitted to MCoDP/CoDP should be compact, to the


point. , self contained and containing only the specific and relevant issue(s),
which require consideration and approval of MCoDP/CoDP. With a view to
reduce the bulky volume of the agenda briefs, following guidelines should be
meticulously followed:

(i) Entire PEC proceedings are not to be enclosed. Instead, only the copy of the
last PEC proceedings bearing endorsement of concerned L-1 should be
enclosed.

(ii) Pre-bid Minutes are not required to be enclosed.

(iii) Techno-commercial evaluation chart is not required to be enclosed. However,


price Comparative Statement vetted by Finance should be enclosed

(iv) Technical and commercial Matrix is not required to be enclosed.

(v) Detailed Techno-commercial evaluation is not required to be enclosed.


However, detailed reasons for rejection of TNA/CNA bidders are to be
mentioned.

(vi) Entire contract document should not be enclosed. In case any reference is
required in the agenda, only the relevant clause/page/portion of the contract
should be enclosed. Similarly, in case reference of any MCoDP Record Note/
MCoD/CoDP /Board Minutes is required, only the relevant page(s) of the same
are to be enclosed.

(vii) Correspondences with the bidders during evaluation stage are not required
to be enclosed.

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(viii) All pages in the agenda brief should be numbered and all enclosures should
be properly indexed.

p. For cases requiring approval for changes in BEC, the agenda brief should
bring out brief background of the case and reasons/justifications for the
changes.

q. For cases requiring approval for award of contract, the agenda brief must
bring out the salient features of the case, reasons for rejection of bids,
reasonability of rates and specific recommendations for which approval of
MCoD/CoDP is required. Further, guidelines issued by PMC, regarding
submission of agenda briefs to MCoD/CoDP, should be followed.

r. Before submission of agenda brief to MCoDP Cell, all the financial


implications involved in the case should be very carefully examined and it
should be ensured that all other contents of the agenda are error free.

s. Normally cases should not be submitted to MCoDP for appraisal. However,


in exceptional cases where CoDP desires that proposal is required to be
submitted to MCoDP for appraisal, instead of submitting a bulky agenda
brief, only one page brief description of the case and the reason as to why
the case is required to be submitted to MCoDP for appraisal.
(MM/111/2023 dated 16.11.2023)
(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
(MM/114/2023 dated 20.12.2023)(para modified)
(MM/117/2023 dated 29.12.2023)
t. The MCoDP/CoDP will meet regularly depending upon number of cases to
be considered. For MCoDP meetings, while all functional Directors are
envisaged to participate, due to exigencies of work if some Director(s) is /
are not present, minimum quorum consisting of
1. Chairman & CEO/CMD,
2. User Director of that particular item/service/Turnkey
contract/consultancy,
3. Concerned Director to whom section processing the case is reporting
to and
4. Director (Finance), may consider and approve the proposal(s). For
MCoDP / CoDP meeting, self-explanatory brief to be available online, duly
signed online by the Procurement Evaluation Committee members (HEAD
MIND, in case of Policy issues) along with relevant documents will be sent
to MCoDP Cell for examination through CPO (for cases processed by CPD)
/ concerned Asset Manager / Basin Manager / Chief of Services / Head of
Institutes / Regions for cases at Assets / Basins, etc [HEAD MIND for policy
matters]. The brief should be available online well in advance before the
expiry of validities keeping in view that sufficient time is available to the
MCoDP Cell for examination of case. MCoDP Cell will examine the
proposal(s) and seek clarification(s) from the concerned work centre(s)

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wherever considered necessary. A copy of brief will be circulated by MCoDP
Cell to all members of MCoDP/ CoDP as well as to Chairman & CEO, ONGC
for perusal. The MCoDP Cell will take action as indicated in clause 10.6.2
below.

10.6.2 Minutes of discussion of Management Committee of Directors – Procurement


(MCoDP) / Committee of Directors – Procurement (CoDP)

(MM/101/2023 dated 29.08.2023)


(MM/112/2023 dated 30.11.2023)
a. The Management Committee of Directors – Procurement (MCoDP) will circulate
amongst MCoDP members a copy of agenda brief and after discussions of the case
in the meeting, will prepare draft record note of the MCoDP/ CoDP meeting within 2
working days and will seek the approval of Director Concerned, which needs to be
accorded, with any changes in the Draft Record Note, if required, within a period of
two working days.

b. After the approval of Director concerned or after expiry of two working days from
the date of submission of Draft Record Notes for approval to Concerned Director,
MCoDP Cell shall circulate the Draft Record Note to all the MCoDP/ CoDP members
for their comments. Comments if any, are to be given by MCoDP/ CoDP Members
on the draft Record Note to the MCoDP Cell within one working day.

For activities at Sl. No. 10.6.2 (a) and (b) above, Saturday will be treated as working
day for this purpose.

c. The draft Record Note for MCoDP meeting will be modified by MCoDP cell based
on the comments received from MCoDP members and thereafter will be submitted
by MCoDP cell directly to Chairman for approval.

The draft Record Note for CoDP meeting will be modified by MCoDP cell based on
the comments received from CoDP members and thereafter will be submitted to the
member Directors for approval.

d. Summary of MCoDP decision with the approval of Chairman based on the


discussions in MCoDP meeting, shall be issued for Agendas discussed, wherein
the approval of MCoDP is required for either award of contract/order and/or for any
dispensation sought during the processing a tender. In all the other cases, only the
detailed Record notes shall be issued. For cases pertaining to apprisal or in case
an agenda is withdrawn no record notes shall be issued. In case an Agenda is
partially withdrawn, no record notes for the withdrawn portion shall be issued.

Similar process shall be adopted in case of CoDP except that instead of approval
of Chairman, approval of members of CoDP shall be obtained.

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11 Bid package creation

11.1 Finalisation of Bid Evaluation Criteria (BEC) and floating of tender

11.1.1 Clauses only applicable for Works

11.1.1.1 In case of LSTK works, on receipt of administrative approval and


expenditure sanction, the concerned tender processing group comprising of
officers from MM, finance and from concerned project shall be formed. This
group shall start preparation of the bid document for tendering based on
scope of work, technical conditions, project execution methodology
(containing key dates and details for tendering and execution of the project),
specifications, cost estimates etc. forwarded after due approval from
competent authority. Respective chief of engineering services/Level-1
officer shall issue guidelines on the roles and activities of the tender
processing group for smooth project execution.

11.1.1.2 Whereas all the formats have their respective importance, however the
most important of these is the, Proforma for price schedule, which shall be
carefully prepared and scrutinized.

(MM/26/2017 dated 21.06.2017) (MM/30/2018 dated 19.01.2018)


(MM/112/2023 dated 30.11.2023)
11.1.1.3 For tenders handled by Central LSTK Procurement Group/OGEP:

In the case of LSTK/EPC tenders, the technical bid package and the
estimates shall be approved by Head Design-OGEP.

For tenders handled by others


In the case of LSTK/EPC tenders, the technical bid package and the
estimates shall be approved by sanctioning authority (Full powers vested
with L-1)

(MM/10/2016 dated 23.03.2016)


(MM/113/2023 dated 08.12.2023)
11.1.2 Clauses applicable for goods, services and LSTK contracts.

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(MM/117/2023 dated 29.12.2023)
11.1.2.1 The tendering process at the Assets / Basins / Institutes/ Hqrs/CPD should
commence with the availability of budget and detailed indent raised by the
concerned Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases) giving specifications and technical BEC
(duly approved by Sanctioning Authority as per para 34.1 of this manual
considering induction of latest and appropriate technology, competitiveness
and lessons/experience of past tenders/contracts) along with cost
estimates, prior approval in case of nomination or limited tender and the
financial sanctions. The Competent Purchase Authority of the tender (on
recommendations of the BEC Formulation Committee) will approve the BEC
(excluding Technical BEC to be enclosed with the tender) and other Special
Conditions of Contract (excluding those approved by Sanctioning Authority
as per para 34.1.1) in the following context:

a. Competitiveness,
b. Lessons / experiences of the past tenders / contracts.

(MM/10/2016 dated 23.03.2016)


(MM/112/2023 dated 30.11.2023)
11.1.2.2 The Competent Purchase Authority will record the reasons for deviating, if
any, from the normal tendering procedure spelt out in paras 8.2 and 8.4 of
this MM Manual.

Concerned L-1 shall have full powers in this regard

11.1.2.3 Various tender clauses pertaining to job requirements/specifications and


delivery period/completion schedule etc. should not be restrictive in nature
and should be broad based so as to generate competition. Similarly, the
BEC should also not be restrictive in nature and should be broad based.

11.1.2.4 The requirements which cannot be executed individually by most of the


contractors should not be clubbed unless it is necessary to have single point
responsibility. In cases where different categories of works,
services/purchases which are of similar nature but not of same
description/specifications are clubbed in the same tender, suitable
provisions should be kept in the BEC for category-wise techno-commercial
and price evaluation.

11.1.2.5 Wherever samples are required from bidders, the criteria for evaluation of
samples will be clearly spelt out in the BEC. The selection of samples should
not be on feel basis.

(MM/26/2017 dated 21.06.2017)


(MM/117/2023 dated 29.12.2023)

114
11.1.2.6 Utmost attention in formulating BEC should be paid so that the ultimate
objective of purchasing function, i.e. purchasing the required
materials/services as per required specifications, delivery schedule at most
competitive possible prices, is met. BECs should be firm / standardized.
BEC revision must be done only by exception, based on cogent and
transparent justification. BEC in general should have evaluation criteria
(Quality – Technical, Commercial [Purely rejection criteria in L-1 method
and scoring criteria in QCBS] as well as price) and a clear evaluation
methodology for determining the winning bid. In all cases, the Bid
Evaluation Criteria (BEC) along with the Matrix will be brought before the
Competent Authority for approval as per para 34.1 of this manual. In case,
some particular clause is proposed to be modified, then the existing clause
and proposed modification along with the reasons for modifying the clause
should only be submitted to the CPA while seeking approval of the BEC.
Also Work Centers should desist from proposing changes in the general
terms and conditions of the tender.

(MM/113/2023 dated 08.12.2023)


11.1.2.7 Where the concerned purchasing centre anticipates that bidders may take
some exceptions/deviations to the BEC/specifications and other tender
conditions (regarding which a view can be taken by the BEC Formulation
Committee formulating BEC), pre-bid conference should be held as per
provisions Manual and issues sorted with the prospective bidders and if
required the bid document (including BEC) be suitably amended and
intimated to all bidders well before opening of tenders, so that question- of
exceptions/deviations after tender opening does not arise, and no changes
are required after tender opening. However no change in BEC is allowed
after opening of bids. Whenever any amendment to the BEC is
necessitated, it should be ensured that modifications in the BEC are defined
in clear, unambiguous and adequate manner.

11.1.2.8 Any proposal for change(s) in BEC should be put up with the following
details:

11.1.2.9 Identified problems in existing BECs due to which changes are proposed.

11.1.2.10 Changes in technical specifications due to which BEC is required to be


changed.
(MM/112/2023 dated 30.11.2023)
11.1.3 Such cases falling under the power of CoDP/MCoDP will be approved by the
Concerned L-1 unless they are in conflict with existing policy/procedure/PMC
instructions. However, any proposed provisions, which are in conflict with the
existing policy/ procedure/ PMC instructions, will require approval of MCoDP.

115
(MM/38/2018 dated 08.06.2018)
11.1.4 CPA shall approve Short-listing of bids for price bid opening including case requiring
rejection of bids after price-bid opening. During the evaluation process/clarification
process, recommendation for acceptance/ rejection of bidder(s) shall also require the
approval of Competent Purchase Authority. Concerned L-1 will have full powers, to
approve short-listing of bids for price bid opening including cases requiring rejection of
bids after price-bid opening.

(MM/117/2023 dated 29.12.2023)


11.1.5 BEC (excluding the standard provisions), once approved by competent authority
for a particular tender can be reviewed / modified as a sequel to pre-bid
conference. Wherever departure from BEC (excluding the standard provisions) is
considered necessary (as a sequel to pre-bid conference), detailed reasons in
tabular form are to be given (in the proposal for approval of competent authority
as per para 34.1 of this manual) indicating as to why such departure is considered
necessary. It will specifically be indicated as to whether ONGC would entail any
extra expenditure on account of the proposed changes in BEC and if so, analysis
will also need to be given indicating the economic benefit in terms of improved
efficiency or otherwise that would accrue to ONGC versus the extra expenditure
involved due to modification in BEC. After this no change in BEC will be allowed.

Powers to approve modification / relaxation / departure from approved BEC, as a


sequel to pre-bid conference (and not after opening of bids), shall require
approval of Competent Authority as per Para 34.1 of this manual, provided, such
changes are not in conflict with the existing policy/ procedure/ PMC instructions.

11.1.6 While framing of BECs by the work centers in cases where standard BEC is not
applicable/available, due care should be taken that BEC being framed by the work
center should be absolutely clear in its intent and meaning. Non submission of
any information/document by the bidder, which does not materially affect the
bidder’s capability and resources to successfully perform the contract, should not
be included in the rejection criteria of the BEC.

11.1.7 As far as possible, for procurement of electronic products under various


programmes/schemes including those for e-Governance, subscription to various
programmes which do not have a registry in India like EPEAT, GREENPEACE
etc., should not the included as essential eligibility criterion for domestic
procurement.

11.1.8 In order to reduce administrative costs and for simplifying the procurement
process, in the tenders for purchase of goods and services, bidders should be
asked to quote for the full quantity of goods or services for each of the tendered
item or category or group wherein the item or category or groups is being
evaluated separately.

116
Bidders can however, be allowed to quote for part quantity of the tendered item/
category/ group, if this condition is incorporated in the tender document with
specific approval from the CPA giving reasons thereof for the need for doing so.
Further, if the items are critical and it is necessary to have more than one source,
then specific provisions for splitting the supply shall be kept in BEC as brought
out at para 14.2.5 In case the bidders are allowed to quote for part quantity, the
bidders can submit EMD/ Bid Security according to the quantity offered (not
exceeding the EMD / Bid Bond / Bid Security specified for entire tender). In such
event, the amount of EMD/Bid Bond for part quantity must be indicated in Bid
Evaluation Criteria.

11.2 Life cycle costing

11.2.1 Evaluation of proposals for capital equipments based on life cycle costs will
consider costs in acquisition, operations and decommissioning.

11.2.2 Applicability: Life cycle costing method of evaluation of proposals is suitable


for long life cycle equipments with operations and decommissioning costs
being a significant proportion of life cycle costs. Some examples of such items
are Turbines, motors, Compressors. Generators etc.

11.2.3 Responsibility: Category managers (if present) will create the life cycle cost
model for equipments. External consultants could also be used for one time
creation of life cycle cost model for high spend capital equipment where
category managers are not present. The model shall be vetted by Finance.

11.2.4 Life cycle costing helps in identification of most economic proposal and also
consider high follow-up costs that might be involved. However, it will require
additional time and data for evaluation.

11.2.5 Determination of life cycle costs would be done based on three time-related
phases:

11.2.6 Acquisition:

Typical costs to be considered in acquisition are as follows:

i. Landed cost inclusive of purchase price, duties and taxes, transportation


costs

ii. Commissioning cost (if variable between different equipment proposals)

iii. Infrastructure cost (if variable between different equipment proposals)

11.2.7 Operation:

Typical costs to be considered in operations are as follows:

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i. Production cost inclusive of raw materials, labor, utilization

ii. Maintenance costs including planned and unplanned

Indirect costs including downtime costs from planned maintenance and failure
will also be considered. Also, any routine training costs will be considered.

11.2.8 Decommissioning:

Typical costs to be considered in this phase are as follows:

i. Deconstruction

ii. Recycling/Disposal

iii. Salvage value (net revenue)

11.2.8.1 While acquisition costs are easier to calculate, data needs to be captured on
operation/decommissioning costs involved for all types of makes for different
capital equipments so we have a detailed internal database for the same. The
indentors will be expected to feed in data in predetermined format (finalized
based on life cycle cost model chosen) and on a periodic basis.

11.2.8.2 Award of contract will be based on the lowest life cycle cost and will
preferably using L-1 selection if data on all relevant costs are available from
internal database. QCBS can be used if proxies have to be used for certain
key costs for which data is not directly available from internal database.

If a new bidder submits a bid and data from that bidder is not available in the
internal database, then bidder will be asked to provide relevant data and
evaluation will be done for the bidder, basis provided data. However, in case
such bidder becomes the lowest Life cycle cost bidder, only 10% of the tendered
quantity shall be awarded to the bidder. Rest of the quantity will be awarded to
the lowest life cycle cost among bidders whose evaluation has been done basis
past data available with ONGC.

Relevant provisions should be suitably incorporated in the tender document to


ensure transparency to bidders.

11.2.8.3 Life cycle costs can also be used to determine the right contracting strategy
where required to enter into annual maintenance contracts or rate contracts
for spares to allow evaluation of proposals on actual costs rather than
past/projected data from vendors or internal database.

11.2.8.4 Evaluation on life cycle cost basis should clearly laid in the bid evaluation
criteria to ensure transparency to bidders except in cases where
optimization of life cycle cost is achieved purely through contracting
strategy.

118
11.3 Quality and Cost based selection (QCBS)

(MM/36/2018 dated 28.5.2018) (MM/46/2019 dated 18.01.2019)


Applicable for procurement of following critical nature of services which are
characterized by high degree of technical influence and high value impact and
where it is justifiable to pay appropriately higher price for higher quality.

Sl. Type of Services


(i) Hiring of consultancy services for EPCM/PMC services
(Engineering Procurement Construction Management Services /
Project Management Contract)

(ii) Hiring of Creative Advertising Agencies

(iii) Hiring of Architectural firms

(iv) Hiring of Attornies (Qualified experienced professionals to render


advice / service in business or legal matters)

(v) Hiring of Trainers / Faculty (Professional/academicians to impart


training and/or deliver lectures on subjects of specialized nature)

(vi) Hiring of Management Consultants

(vii) Hiring of services for Facility Management*:


(a) For Green Buildings
(b) For Conventional Buildings

(viii) Hiring of services for specialized consulting Services


(ix) Hiring of services for Event Management Agencies (Planning and
executing large-scale company meetings, special events, sporting
events, reunions etc.)

(x) Hiring of services for Integrated security services (Specialized


integrated services involving Access Control, Fire Life-Safety
Systems, Alarm Management, Photo ID, CCTV management,
Physical Security, Video Management, Command and Control
systems etc).

*Details of services which falls under the ambit of Facility Management have been
defined as under:

I. List of services to be covered under the ambit of Single Facility Management


on unified basis:

119
(a) Single Facility Management Services, to be hired through QCBS methodology,
shall cover all general day-to-day works related with Housekeeping,
Horticulture, Pest Control, Civil and Electrical Maintenance and General Office
Management Services (wherever required), as below:

(i) Non- Technical: All Housekeeping, Horticulture, Pest & Rodent


day-to-day Control Waste disposal/management as per
requirement for requirement
upkeep and General Office work as per requirement of the work
maintenance of centre
facilities - both Reception and Dak
residential and
Documentation/binding
non-residential
Photocopying/Scanning
Packing/Loading/Unloading

(ii) Technical Civil Maintenance


Water supply and sewage system
Electrical Maintenance
Operation of Lifts, DG Sets, Substation
R & M of Cooling Appliances

Note: The services which are to be combined into a Single Facility Management
Contract, shall be decided by the workcentre/location.

(b) The separate Single Facility Management Contract for Hospital services
shall cover the following :

Housekeeping
Patients Hygiene and care
Catering for Indoor Patient
Operation & maintenance of Laundry
O & M of Medical Gas Plant
Hospital Management Services

II. Contracts for Housekeeping and Catering services of Guest Houses and Office
Canteen Services shall also be awarded following QCBS methodology, after expiry
of the existing contracts.

III. The contracts awarded on OEM/OES basis for technical jobs/services shall
continue as per the existing system.

120
Separate approval would be required to be taken in case of non-implementation of
QCBS for the specified services.

11.3.1 QCBS uses a competitive process among firms that takes into account the
quality and the cost of the proposal in the selection of the successful firm

(MM/57/2020 dated 01.05.2020)


11.3.2 Considering the technical influence and value impact of the above services
proposed to be procured, relative Weightage (Technical: Price) for quality and
cost shall be proposed by Indenting department.

The degree of technical influence shall be determined by Indenting department


based on various parameters. An indicative list of such parameters is provided
hereunder:

i. Importance of Technical competence


 Certifications
 Product/service conformance to norms/specs
 Expected life time (if applicable)
 Importance of experience of firm or key personnel (as applicable)

ii. Importance of Service levels


 Timely delivery
 Lead time
 Warranty and support experience
 Support coverage

iii. Degree of differentiation of offerings


 Technological similarity of offerings
 Functional Substitutability of competing offerings

Value impact of tender will also be determined by Indenting department.

QCBS methodology shall be implemented while awarding contracts for


procurement/hiring of all E&P services in future. Similar QCBS matrix be firmed up
for charter hiring of drilling rigs and other E&P services. The QCBS matrix be
firmed up by the working group for factoring in the practices being followed by
ONGC Videsh and other PSUs in awarding contracts through QCBS methodology.

(MM/64/2021 dated 24.03.2021)


(MM/112/2023 dated 30.11.2023)
(MM/125/2024 dated 23.04.2024)
11.3.3 Considering the technical influence and value impact of the service proposed to
be procured, for applicability of QCBS and relative Weightage (Technical: Price)
for quality and cost to be adopted, Indentor shall obtain the approval of a

121
Committee of Directors (CoD) comprising of Director (Finance), Director-l/c MM
and Director concerned. The CoD shall be fully empowered to modify and approve
Technical: Price weightage.

The weightage of respective technical parameters (QCBS matrix) alongwith


relative Weightage (Technical: Price) for quality and cost shall be proposed by the
Working Group of Indenting Section at the work center duly recommended by the
concerned Key Executive and put-up by HEAD MIND for the approval of CoD.

However, QCBS matrix and relative Weightage (Technical: Price) as approved


earlier by COD for a case for any work centre may be adopted for similar cases
across different work centres with approval of L-I of concerned work center without
requiring CoD approval again. In order to facilitate the same, QCBS matrix earlier
approved by CoD for a given case along with scope of work shall be uploaded by
PMC on MM intranet website. The work center may refer to the same to ascertain
if already approved matrix is available for similar services.

Wherever, work center obtains the approval of CoD for QCBS matrix and relative
Weightage (Technical: Price), copy of the same along with approved matrix and
Scope of Work shall be immediately forwarded by the work center to PMC for
uploading the same on MM website.

11.3.4 Bid package: The evaluation criteria based on the decision of competent authority
on relative Weightage of cost and quality along with criteria and weightage of
quality related parameters need to be clearly mentioned in the BEC.
(MM/113/2023 dated 08.12.2023)
11.3.5 Tender evaluation: The evaluation of the proposals shall be carried out in two
stages: first the quality, and then the cost. Evaluation shall be carried out in full
conformity with the provisions of the tender documents.

a. Techno-commercial evaluation to be carried out by respective indenting officer


and team including MM and finance for the received bids. All key criteria on quality
are objectively scored and weighted as per Weightage described in the BEC of the
bid.

MM Department/Tender Processing Group will seek clarifications from bidders at


this stage if necessary, based on the approval of Competent Authority.

b. Cost evaluation to be carried out as done under two bid open tenders and firms
are given scores as per guidance provided in BEC with maximum score being
provided to lowest bidder (L-1).

Commercial Score = (100 * L-1) / Bidder’s Price

11.3.6 The contract shall be awarded to the vendor with the highest combined score calculated
using the following formula.

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Combined Score = (Quality Score assigned to bidder x Technical weight %) +
(Commercial Score assigned to bidder x Commercial weight %)

(MM/64/2021 dated 24.03.2021)


11.3.7 a.) Rate reasonability:

In order to ascertain a reasonable price commensurate with the quality of the


product quoted, following aspects shall be taken into consideration, while doing
due diligence on rates quoted by B1 bidder:

(i) Whether prices quoted by the B-1 bidder are substantially higher than LPR/Cost
estimate:
(a) Applicable where QCBS parameters, marking scheme and Technical:Price
weightage in instant tender and LPR tender are same
Wherever feasible, the combined score of B1 bidder (which shall be the original
B1 bidder of LPR tender and not a bidder who has got the award due to matching
of score/ target price, if any) of last tender being considered as LPR and all the
TA/CA bidders including B1 bidder of instant tender may be re-calculated
considering QCBS parameters, marking scheme and Technical: Price weightage
of current tender. If the re-worked combined score of B1 bidder of LPR tender is
higher than re-worked combined score of original B1 bidder of the tender under
evaluation, then target price of original B1 bidder of the present tender shall be
worked out so that its reworked Combined Score is equal to the reworked
Combined Score of B1 bidder of the LPR tender. Such Target Price may be
considered as the equivalent of LPR for comparison with present tender price of
original B1 bidder for examining its reasonability.

b) Applicable where QCBS parameters of the LPR tender are better than the instant
tender with / without same marking scheme and Technical :Price weightage:

Wherever feasible, it would first need to be ascertained whether QCBS parameters


of LPR tender were overall better than the tender under evaluation. Generally
prices of better QCBS product services are expected to be higher. However, if the
price of B1 bidder in a tender is observed to be substantially higher than the LPR
tender invited with better QCBS parameter, price negotiation may be undertaken
with the B-1 bidder to arrive at a reasonable price with proper justification taking
into account time period elapsed since LPR contract, market dynamics.

(ii) In the event of prices quoted by B-1 bidder are found to be substantially higher
than the equivalent LPR worked out as per (i) above (if applicable), whether the
current Supply – Demand scenario is materially different from that prevailing at
time of LPR.

(iii) Whether there is general perception of prices having gone down globally after the
last contract was awarded or after submission of bid against the tender under

123
evaluation and the prices are believed to remain at lower level for quite some
time.

11.3.8 Working out Target Price for bidders B2, B3 etc. so as to match their combined
score with combined score of B1 in cases where quantity is splitable/dividable:

In case the bidder with highest combined score(referred as B1 below) cannot meet
the full quantity of the tender, the bidder with the next highest combined score (or
the bidder with highest technical score among the remaining bidders, as specified
in the tender document) (referred as B2, B3 etc. below) will be asked to match the
combined score of the bidder with highest score as per the following concept:

Combined Score of a bidder is summation of their weighted Technical Score (i.e.


Technical Score*Technical weightage) and weighted Commercial Score (i.e.
Commercial Score*Commercial weightage). Technical Score being dependent on
technical parameters would remain fixed / unchanged for a bidder. Commercial
Score of a bidder is being derived by the formula i.e. 100*Lowest of the prices of
techno-commercially acceptable bidders/Price quoted by such bidder, therefore,
for matching combined score of B1 bidder, the bidders B2, B3 etc. would have to
increase their Commercial Score by reducing their price.

Target Price for bidders B2, B3 etc. so as to match their combined score with
combined score of B1 would depend upon different situations as brought out
below:

(A) Where price negotiation has not been conducted with B1 bidder

Target Price for bidder B2, B3 etc. = 100 * Lowest of the prices of techno-
commercially acceptable bidders / [(Combined Score of B1 – (Technical Score of
B2, B3 etc* Technical weightage %)) (Divided by) (Commercial Weightage %)]

(B) Where price negotiation is undertaken with B1 bidder

Due to reduction in price by B1 bidder, if any, as a result of Price negotiation the


Commercial Score/Combined Score of B1 would require to be reworked (which
would be higher than their earlier commercial score/combined score).

Revised Combined Score of B1 = (Technical Score assigned to B1 * Technical


weightage %) + [(100 * Lowest of the prices of techno-commercially acceptable
bidders or post negotiation price offered by B1 bidder, whichever is lower *
Commercial weightage %) / Post negotiation Price offered by B1 bidder].

The bidders B2, B3 etc. would, by reducing their prices, be needed to match their
Combined score with that of the revised Combined Score of B1.

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Target Price for bidder B2, B3 etc. = (100 * Lowest of the prices of techno-
commercially acceptable bidders or post negotiation price offered by B1 bidder,
whichever is lower) / [(Revised Combined Score of B1 – Technical Score of B2,
B3 etc. * Technical weightage %) (Divided by) Commercial Weightage %]

The bidders will be invited for score matching by way of reducing prices in order
of original ranking (i.e. ranking before holding price negotiation with B1 bidder) as
per process prescribed at para 14.2.6 till requirement of entire tender quantity is
met (thereafter, remaining bidders will not be considered). Contract on B1 and
other bidders will be awarded accordingly.

11.3.9 In the QCBS system, as the evaluation of bids shall be based on combined
score (Technical parameters and prices), purchase preference policies (like
Policy for MSEs and PPLC etc.) shall not be applicable.

11.4 Least Cost Selection (LCS) with minimum qualification score.

Applicable for services which are characterized by high degree of technical


influence and low valve impact. Value impact of tender will be determined by
Indenting department. In case of projects, calculations done for feasibility
report can be leveraged to determine the same.

11.4.1 Under Least Cost Selection with minimum qualification score, the lowest
proposal with lowest cost among those that passed the minimum
technical score shall be considered for award.

11.4.2 Considering the technical influence of the service proposed to be


procured, marks for Technical Weightage for shortlisting of bids shall be
assigned.

11.4.3 Degree of technical influence shall be determined by Indentor as per


provision under 11.3.2 above

11.4.4 Approval for implementing LCS with minimum qualification marks for a
category of items, technical weightage, matrix and template for
evaluation shall be decided and approved as per provisions under para
11.3.3 above.

11.4.5 Bid package: The evaluation criteria based on Concerned Weightage of


quality related parameters need to be clearly mentioned in the BEC.

It shall be specified in the tender conditions that ONGC shall select


bidders scoring certain pre-defined minimum technical score for opening
of price bids. The minimum quality score required for selection of bid for
price bid opening shall be clearly indicated in the BEC.

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11.4.6 The Technical bids shall be evaluated on the basis of their responsiveness
and point system specified in the Data Sheet supplied with the tender
document. Each responsive offer will be given a technical score. An offer
shall be rejected at this stage if it is not found responsive or if it fails to
achieve the minimum technical score indicated in the Data Sheet provided
along with the tender document.

11.4.7 Price evaluation to be carried out as per BEC.

11.4.8 The contract shall be awarded to the L-1 bidder based on the price
evaluation of the bids.

11.4.9 Rate reasonability: Rate reasonability shall be determined as per


provisions on ascertaining the reasonability of rates.

11.5 QCBS/LCS with minimum qualification marks shall not be adopted for
procurement of goods (except for premium bits which shall be procured as
per para 28 of IMMM) and LSTK contracts.

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12 Bid invitation to bid receipt

12.1 Invitation of tender

12.1.1 Coordination and bulking of demands for purpose of inviting tenders:

When dealing with indents, due attention should be paid to the combination and
bulking of demands which will result in economy in purchase. Demands for
materials received simultaneously from different indentors should be combined
as far as possible while inviting tenders. Due regard should, however, be paid to
delivery instructions given by the indentors. Demands which cannot be suitably
combined with others for this or any other reasons should be dealt with
separately.

12.2 Enquiry register (Not applicable for e-procurement and open tender)

12.2.1 Every individual section dealing with purchases will maintain an enquiry register.
A separate page for each enquiry will be allotted in that register.

12.2.2 In case of limited enquiries, the name of the firms to whom the enquiries will be
addressed will be entered in that register. This will be signed by the concerned
officer sending the enquiry.

(MM/10/2016 dated 23.03.2016)

12.3 Creation of RFQ and tender intimation to be sent to prospective bidders

12.3.1.1 Tender intimations are sent to prospective bidders as soon as the


information is received that the tender has been advertised. Officer not
below E-1 are empowered for issue of tender documents (signing of RFQ)
). As far as possible RFQ should be created through the system prior to
issuance of tender document, before bid closing date and time. In situations
where it is not possible to do so, approval of I/c MM for cases dealt by MM
and concerned L-II for cases dealt by other than MM with valid and justified
reasons shall be obtained.

(MM/31/2018 dated 13.03.2018)


12.4 Submission of tenders for publication in press - Deleted -

12.4.1 - Deleted -

12.5 Time to be allowed to tenderers to quote

(MM/48/2019 dated 07.02.2019)


12.5.1 Save in special cases which should be seen and approved by concerned
Level-1 executive, the following period will be allowed to bidders for submitting
their bids in Open Tenders:

127
Description of Activity Tenders without Pre- Tenders with pre bid
bid conference conference

(i) Receipt of queries from bidders …. 7 days

(ii) Scrutinizing the queries and …. 5 days


holding pre bid conference

(iii) Approval of Pre-bid minutes and …. 7 days


issue of the same

(iv) Submission of offers and opening 21 days 21 days


of techno-commercial offers(TBO)

TOTAL 21 days 40 days

Note:

(i) In LSTK contracts, an additional time of 30 days for “Process Platforms”/"GGS"/"CTF


works"/"GCP"/"ETP"/"WTP" and 15 days for all other LSTK projects including “Well
Platforms”/“Pipe Lines”/"Fire fighting"/other modification jobs shall be applicable for the
activity iii above

(MM/31/2018 dated 13.03.2018)


12.5.2 The above period is to be reckoned from the scheduled start date for
participation (Tender Start Date). The time to be allowed as per para 12.5.1
should be ensured from such start date.

(MM/26/2017 dated 21.06.2017)


12.5.3 Save in special cases which should be seen and approved by concerned
Level-1 executive, for limited tenders, a period of 21 days shall be given to the
bidders for submission of offers, from the date of issue of tender enquiries.

12.6 Validity period


(MM/112/2023 dated 30.11.2023)
12.6.1 The bidders will be asked to keep their offers open as under:

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a. Limited tenders upto Rs.10 lakhs – 60 days

b. Non MCoDP cases above Rs.10 lakhs – 90 days

c. MCoDP level cases – 120 days

(MM/109/2023 dated 30.10.2023)

Note:

For any particular case, if longer bid validity period is considered necessary,
than the validity period prescribed above, then the longer bid validity period can
also be specified in the tender with the approval of CPA (concerned L-1 shall
have full powers), but due justifications for such longer bid validity required must
be given while obtaining the approval. However, after specifying a reasonable
time for bid validity period, the same must be adhered to.

12.6.2 It should be specified in all tender notices under Single Bid System that offers
with lesser than the required validity will be straightway ignored. However, under
Two Bid System no offer should be rejected on account of shorter validity. In
Two Bid System, as soon as technical evaluation is completed, reference should
be made to all bidders except those which are technically rejected, for furnishing
validity, if required at that stage.

12.7 Invitation to Bid

(MM/26/2017 dated 21.06.2017)


12.7.1 In regard to Invitation to bid, following points are to be kept in view:-

a. The Invitation to bid will clearly indicate the place, date and time by which
tenders will be received and the place, date and the time at which these will
be opened. It will also provide a brief description of the tender along with
details of tender number, and contract period.

b. The time and venue of the pre-bid conference (if any envisaged) also must
be clearly specified in the Invitation to Bid. The last date of receipt of
clarifications for pre-bid conference will also be mentioned.

c. Invitation to bid should include an instruction that bids sent by post or courier
must be sent under registered cover so as to reach the place well before the
closing time and date.

d. All bids received by the notified closing date and time whether through the
post or through the tender box, will be registered under the signature of the
Tender Receiving Officer.

e. Invitation to bid may be transmitted by fax or e-mail also, wherever required.

129
f. Invitation to bid will indicate the date and time of the commencement of the
sale of the tender.

g. Invitation to bid will mention that bidders can download the tender from
ONGC's tender website to participate in the tenders

h. Invitation to bid will clearly mention the name and designation of the CPA,
Tender receiving officer and leave reserve officer.

i. In case of Invitation to bid pertaining to e-procurement tender it shall be


mentioned that all the bidders have access to online help document which is
available on login. This help document should be used by them for
participating in e-procurement tenders

(MM/50/2019 dated 04.07.2019)


j. In NIT, the EMD amount shall be indicated in Indian Rupee as well as US
Dollars (USD).

(MM/26/2017 dated 21.06.2017)


12.7.2 The tender inviting sections shall forward the Invitation to bid both in soft and
hard copy to the concerned Corporate Communication. The Invitation to Bid
must contain the official e-mail address of the tender inviting authority (dealing
officer).

12.7.3. The Invitation to bid shall be countersigned by the controlling officer of the tender
inviting authority (dealing officer) to ensure that the Invitation to Bids is in order
and to avoid any corrections after its appearance on the web.

12.7.4 The complete set of bid documents shall be uploaded on tenders.ongc.co.in well
in advance of the specified date for commencement of tender sale specified in
NIT. The tender inviting authority (dealing officer) will be responsible for
ensuring the correctness of the content of the Invitation to Bid uploaded on the
site.

(MM/04/2015 dated 28.04.2015)


(MM/10/2016 dated 23.03.2016) (MM/26/2017 dated 21.06.2017)

12.7.5 In case of physical tender (not published in e-portal), bidders will have to download
the tender document within the time specified for tender closing/opening date and
use the same for participating in the tender.

12.8 Number of copies of offers to be called from bidders(Not applicable for e-


procurement)

12.8.1 Copies of bids will be called as under:

a. Where in-house evaluation is involved - Copies in duplicate

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b. Where bid evaluation is done by outside agency - Five Copies

12.9 Variation in quantity after invitation of tender

12.9.1 Provisions will be made in all tender conditions for procurement of


goods/services that ONGC is entitled to increase or decrease the quantities
amongst any / all the items/services of the tender by not more than 20% (twenty
percent). Any variations upto +/- 20% of the tendered quantity would be
permissible before price bid opening.

12.9.2 In case there is an increase in the quantity beyond 20%, it would be essential to
invite fresh tenders covering the total revised quantity so as to get the advantage
of bulk discount in prices.

(MM/64/2021 dated 24.03.2021)


12.9.3 In case the reduction in quantities is more than 20%, confirmation from L-1
bidder (B-1 bidder in case of QCBS tenders) would be obtained to supply at the
quoted rates. On getting confirmation, order for the reduced quantity will be
placed. If L-1 bidder (B-1 bidder in case of QCBS tenders) does not agree, then
tender would be re-invited.

12.9.4 ONGC may increase or decrease the quantities against any/all the items of the
tender by not more than 20% (twenty percent) while placing the order of OEM
spares.

12.9.5 In respect of centrally procured items, all Assets / Basins should properly plan,
prepare well-wise requirement and based on latest stock position (in hand and
pipeline), firm requirement by scheduling in a manner to avoid overstocking,
should be indicated to Corporate-MM for procurement. Revision in
requirement of items/quantities, if any for valid reasons, should be intimated
to the Corporate-MM promptly prior to opening of price bids. Corporate-MM
should ascertain that revision of quantities, if any, by Assets/Basins and if
required carry out the exercise of variation in tendered quantities considering
the latest stock position prior to opening of price bids

(MM/50/2019 dated 04.07.2019)


12.9.6 EMD amount once fixed in NIT, shall not be modified on account of variation in
quantity if any, after invitation of tender.

12.10 Sale of bidding documents to firms with whom business has been banned
/ suspended

12.10.1 It may be specified in INVITATION TO BID that firm(s) to whom no further


business is to be given or dealings with whom have been banned / suspended
are not eligible to participate in the tender and any bid received from such firm(s)
shall not be considered and will be returned un-opened to the concerned firm(s)
within a period of seven days from the due date of opening of tenders.

131
12.11 Tender fee

(MM/26/2017 dated 21.06.2017)


12.11.1 No tender fee shall be charged from the bidders for participating in any kind of
tender. The bidder should download the document from the website for
participating.

12.11.2 – Deleted -

12.11.3 – Deleted -

12.11.4 – Deleted –

12.12 Offers by agents/ consultants/ retainers/ representative/ associate of


foreign principals.

12.12.1 Offers made by agents/ consultants/ retainers/ representative/ associate of


foreign principals will be outright rejected.

12.13 – Deleted -

12.14 – Deleted -

12.15 – Deleted -

12.16 Tender register to be maintained at receipt of bids

12.16.1 The following register should be maintained and presented by the Section
concerned at the time of opening of bid. Both the Officers opening the tenders
will sign in column 4 and 5 of the above register against the names of firms
whose bids have been received.

Signature Sl. No. No. Of Signature of Tender Special Signature of


of Firm’s Allotted samples Opening Officers Remarks of Firm’s
represent to each received Tender representati
ative (if by tender along with Opening ve(s) who
hand) offer Officer, if any attended
tender
opening
Asstt. MM FAO/Asst.
Officer/MM FAO
Officer
1 2 3 4 5 6 7

Total No. of

a) Envelopes received for opening from Tender Receiving Officer

132
b) Samples received from Tender Receiving Officer.
c) Samples received along with offers.

Total No. of:

a) Tenders handed over to the Asstt./Officer concerned


b) Samples handed over to the Asstt./Officer concerned
c) Letter of Authority of the firm(s).

1) Tender Opening Officers' Signature


2) Signature of receiving Asstt./Officer

12.17 Pre-bid-conference (Wherever applicable)

(MM/35/2018 dated 25.05.2018)


(MM/109/2023 dated 30.10.2023)
(MM/113/2023 dated 08.12.2023)
Pre-bid conference shall not be held in each and every case. However, Work
Center may hold pre-bid conference in any case based on the need/justification
for the same with the prior approval of concerned Level-1 officer.

12.17.1 Proposal for holding pre-bid conference should be initiated preferably by the
Indentor at the indenting stage. However, if a need for holding pre-bid
conference is felt by the BEC Formulation Committee in its meeting held before
invitation of the tender, then BEC Formulation Committee can also propose for
holding of the pre-bid conference.

Depending on the complexity of the case, the maximum number of persons that
would be permitted per bidder for pre-bid conference should also be decided by
the work centre at the time of taking a call on holding of pre-bid conference
against the tender and the limit so fixed for participation in the pre-bid
conference should be indicated upfront in the bidding documents.

12.17.2 Wherever it is decided to hold pre-bid conference, in Invitation to Bid, bidders


should be advised to download the tender documents well in advance prior to
the pre-bid conference date, providing sufficient time for response. The bidders
shall submit their queries within prescribed date as per conditions stipulated in
tender document attending pre bid conference shall not be pre-requisite for
submitting the bid.

133
12.17.3 The date and venue of pre-bid conference should be clearly indicated in the
Invitation to Bid and the bidding document. In the Invitation to Bid and bidding
document as well as during the pre-bid conference, bidders should be advised
that ONGC expects the bidders to comply with the tender
specifications/conditions which have been frozen after pre-bid conference, and
hence non-conforming bids will be rejected straightaway. The indenting officer
from concerned Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases) (who has approved the specifications) is to
chair pre-bid conference(s) with competent representative from concerned
technical department (like E&C) and BEC Formulation Committee. If felt
desirable, a legal officer may also be associated. The bidders meeting following
requirement shall only be considered for attending the pre-bid conference:

a. The bidders who are in the business of providing similar Services/Goods as


per tender requirement only shall be allowed to participate in Pre-Bid
conference.

Accordingly, an undertaking in the prescribed format as per Appendix-PBC


provided with the tender document shall be submitted by the bidder
alongwith Pre Bid queries within prescribed date. Failing which the bidder
shall not be allowed to attend pre-bid conference.

b. Bidders should depute their employees (preferably) who are competent to


present their queries in the Pre-Bid Conference.

c. Only those bidders who have submitted queries within prescribed date shall
be allowed to attend PBC.

d. While submitting Pre Bid queries, prospective bidder(s) shall be required to


provide details (Name, Designation, mobile no. etc) of its representative,
who will attend PBC and those person(s) only will be permitted to attend the
pre-bid conference.

e. In tenders for LSTK Projects, employees (preferably) of proposed


consortium members and / or sub-contractors and / or vendors who are
competent to present their queries in the pre bid conference shall be
allowed to participate in the pre-bid conference along with the bidder subject
to prior submission of details to ONGC as stipulated above.

Bidders requesting to attend pre-bid conference without fulfilling above


requirement shall be informed their ineligibility to attend pre-bid conference
with the approval of the officer from the concerned Nodal Technical Agency
(for cases under CPD)/ concerned Indenting Section (for other cases), who
has approved the specifications.

It shall be categorically and explicitly mentioned in the tender document that


pre-bid queries shall be restricted to Technical specifications, scope of

134
work, Technical BEC, special conditions of contract and mobilization/
delivery/ completion period only and that no queries whatsoever shall be
entertained on provisions of GCC and other standard provisions/ proforma/
format of the tender document.

(MM/113/2023 dated 08.12.2023)


12.17.4 Technical issues raised by the prospective bidders during the pre-bid
conference will be examined in detail by the concerned Nodal Technical Agency
(for cases under CPD)/ concerned Indenting Section (for other cases). If any
modification in Technical specifications/ Scope of Work/ Technical BEC is
required, the same shall be dealt by concerned Nodal Technical Agency (for
cases under CPD)/ concerned Indenting Section (for other cases) and conveyed
to MM Department at CPD/concerned Work Center. Other issues raised by the
prospective bidders during pre-bid conference will be examined by BEC
Formulation Committee. If due to the points/doubts raised by the prospective
bidders, tender specifications or any specific term(s), condition(s) which is not a
part of “Standard Terms and Conditions of the Tender” needs to be modified,
then the same will be considered for modification. However, if there are any
points/issues, which have been raised by prospective bidders during the pre-bid
conference but have not been resolved, then a second pre-bid conference will
be held which will be attended by BEC Formulation Committee and concerned
Nodal Technical Agency (for cases under CPD)/ concerned Indenting Section
(for other cases). In this pre-bid conference, BEC Formulation Committee and
concerned Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases) would again try to clarify the doubts raised
by the prospective bidders, with a view to ensure adequate participation.

All decisions to conduct second pre-bid conference needs to be approved by


concerned L-1.

(MM/50/2019 dated 04.07.2019)


(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
(MM/117/2023 dated 29.12.2023)

135
12.17.5 MM department/Tender Processing Group in association with the concerned
Nodal Technical Agency (for cases under CPD)/ concerned Indenting Section
(for other cases) will prepare minutes of the pre-bid conference and obtain
approval of the officer who chaired the pre-bid conference. Thereafter, in case
no modifications are required in the BEC/specifications/scope of work/tender
conditions, the bidder would be asked to submit their bids on due date and time.
However, if, as a sequel to the pre-bid conference, modifications are required in
the BEC and other tender conditions (excluding commercial conditions
standardised by PMC), Nodal Technical Agency (for cases under CPD)/
concerned Indenting Section (for other cases) will forward duly approved
modified Technical specifications/ Scope of Work/ Technical BEC/Technical
part of Special conditions of contract MM Department at CPD/concerned Work
Center for incorporating in tender. BEC Formulation Committee shall examine
other issues and submit its recommendations for modification in BEC and
tender conditions (other than as mentioned above) for approval of the
competent authority as defined under clause 34.1 by providing detailed
justification for agreeing to such modification(s), provided, such changes are not
in conflict with the existing policy/ procedure/ PMC instructions. However, in
case of conflict requiring changes to existing policy/procedure/PMC instructions
in all cases will require MCoDP approval. However, in case of change of
specifications/scope of work as a sequel to pre-bid conference, necessary
approval shall be obtained as per clause 34.1.

12.17.6 After obtaining such approval, these modifications should be made and
communicated (through fastest mode of communication like fax or mail) prior to
submission of bids with sufficient time to all the bidders to submit their bids; no
change will be allowed thereafter. Whenever ·any amendment to the
BEC/tender conditions is necessitated, it should be ensured that modifications
in the BEC/tender conditions are defined in clear, unambiguous and adequate
manner. The specifications/scope of work, tender terms and conditions are
frozen after issuance of pre-bid minutes and hence thereafter no
correspondence should be made with the bidders. However, due to compelling
reasons, if it becomes unavoidable to enter into correspondence with the
bidders even after issuance of pre-bid minutes, then the same can be done with
the approval of the concerned Level-1 executive, giving detailed justification for
the same. Further, such correspondence should be limited to clarifications only,
without modifying any of the tender provisions. It should also be ensured that
while issuing such clarifications, the same should be forwarded to all the bidders
who have bought the tender documents

(MM/10/2016 dated 23.03.2016)


(MM/109/2023 dated 30.10.2023)
(MM/113/2023 dated 08.12.2023)

136
12.17.7 If as a sequel to the pre-bid conference or otherwise, if an important tender
condition regarding scope of work/specifications/delivery period/mobilization
period/completion period requires major modification then BEC Formulation
Committee should deliberate the case and submit their recommendations to
CPA(concerned L-1 shall have full powers)for extension of Bid submission/
opening date. In such situation, pre-bid conference would not be held again.
(MM/117/2023 dated 29.12.2023)
12.17.8 Whenever any changes in the Scope of Work or any other tender conditions are
necessitated as a sequel to pre-bid conference or otherwise, financial
implication of the same should be carefully examined, deliberated and properly
recorded by Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases) and forwarded to CPD/Work Centre
MM/Tender Processing Group. Further, the cost implication of such changes
should be taken into consideration for evaluation and ascertaining the
reasonability of rates. In case variation is more than +/- 20% and where BEC is
affected by cost estimate (example : experience criteria is linked to cost
estimate), the BEC may also be suitably modified.

(MM/26/2017 dated 21.06.2017)


(MM/113/2023 dated 08.12.2023)
12.17.9 In cases where pre-bid conference is not held, provisions shall be incorporated
in the NIT/bid document that bidders can submit relevant queries to the tender
inviting office within 10 days from the date of publication of NIT in case of open
tenders or issuance of bid document in case of Limited Tenders.

Queries on technical issues, if any, received shall be examined by concerned


Nodal Technical Agency (for cases under CPD)/ concerned Indenting Section
(for other cases) and BEC Formulation Committee for other queries, for issuing
replies to the bidder within 3 days.

When purchase does not fall under the purview of BEC Formulation Committee,
dealing officer of MM in consultation with minimum E-2 level executives of
Indentor and Finance shall examine the queries and put up the proposals for
approval of CPA. For cases dealt by departments other than MM, queries shall
be examined by dealing officer in Indenting Section in consultation with
minimum E-2 level executive of finance.

12.18 Receipt of tenders

12.18.1 The tenders will be received as under:

i. Directly being put in Tender Box by bidders.

ii. Received by ordinary / regd. dak by Central Diary Section or Tender


receiving officer

137
iii. Handed over personally to Tender receiving officer or Central Diary
Section by bidder(s) it being it not possible for them to put in tender box
due to volume of the documents.

iv. Through e-portal as described in e-procurement (clause 27)

MM/88/2023 dated 25.05.2023


12.18.2 The Receipt and Despatch (Central Diary) Section will maintain separate
register for the bids received by them through post office / handed over to them
personally by tenderers due to their voluminous size. Tender samples which
cannot be dropped in Tender Box due to their voluminous size will also be
received by In charge Diary Section or Tender receiving officer from the bidders.
All Tenders and tender samples received by Diary Section will be recorded in
this register. The Diary Section will put date and time of the receipt on each
envelope of tender / sample and hand over the same on day to day basis to the
Tender Receiving Officer before 15.00 hrs.(1600 hrs in Mumbai and Uran)(after
obtaining his initials in acknowledgement of having received the same (Same
closing time shall be exercised in e-tenders also). In no circumstances the cover
of tenders will be opened or destroyed by Diary Section. All late tenders on
receipt will be handed over to the Section concerned on day to day basis for
necessary action laid down as below:
12.18.2.1 All bids received after the notified time and date of closing of tenders will
be treated as late tenders.

12.18.2.2 Unsolicited alterations or modifications of tenders received after the notified


time and date of closing of the tenders shall not be entertained.

(MM/10/2016 dated 23.03.2016)


12.18.2.3 Late tenders, as defined in 12.18.2.1 above, shall not be considered. Such
late tenders, after recording with the concerned Materials Management
officer, will be returned un-opened to the concerned bidder(s) within a period
of seven days from the due date of opening of tenders

12.18.2.4 Unsolicited offers will not be considered.

12.19 Tender box

12.19.1 A Tender Box with suitable provision on its top for dropping tenders in it will
be placed in Tender Opening Room / Office verandah.

12.19.2 The Tender Box will always be kept locked and sealed. Keys of Tender Box
will be under the custody of Tender Receiving Officer.

138
12.20 Nomination of tender receiving / opening officer(s)

12.20.1 An Officer of Materials Management/Tender processing group not below E-


0 level will be nominated for receipt of tenders each month. In addition, one
officer not below E-0 level each from Materials Management and Finance and
Accounts Depts. will also be nominated for opening of tenders each month.
Arrangements will also be made for nominating officers not below E-0 level as
Leave Reserve for above purpose.

12.20.2 The names of the officers selected for a particular month for receipt and
opening of tenders will be communicated to all concerned along with tender
opening programme on the first day of the month, if not earlier.

12.21 Accounting of tenders

<not applicable for e-procurement>


12.21.1 Each Purchase Centre will have an almirah with clear designated space for
each date. Key of this almirah will be under the custody of Tender Receiving
Officer.

12.21.2 Tender Receiving Officer will take out at 15.00 hrs. (1600 hrs in Mumbai &
Uran) on each working day all tenders / samples from Tender Box and will put
dated initials on each envelope (Same closing time shall be exercised in e-
tenders also). Thereafter, the lock of Tender Box will be sealed. All these
envelopes as well as envelopes received from Diary Section containing
bidding documents / samples will be placed by him in their respective date
bins of the Almirah provided for this purpose.

12.21.3 The Tender Receiving Officer will maintain numerical account of the tenders
/ samples taken from Tender Box as well as of the tenders / samples received
by him from Diary Section on the format below:

Opening No. Of tender /samples received Issued Closing


Balance balance
Tender Sample Through Diary Tender Box Total Ten Sample Tender Sample
Section der
No. Of Sample No. Of Samp No. Of Sampl
Tender Tender les tender es
1 2 3 4

In addition, the Tender Receiving Officer will note down full particulars of each
tender / sample received by him every day in a register to be maintained for this
purpose. In this register, there will be one or more pages allotted for each tender
notice and this will have the format below:-

Tender No......... Due date of Opening......

139
Sl. Name of No. Of envelopes Dt. Of Source of receipt Initials
No the party received receipt
Tender Samples Diary Tender Box
Section
1 2 3 4 5 6

12.21.4 The tenders / samples received from different sources on different dates
shall be entered in the above register. On the due date of opening, a line will
be drawn at the end indicating thereby the total number of tenders / samples
received against the tender notice in question. In the cases where no tender /
sample has been received on a particular date, the Tender Receiving Officer
will record the fact of non-receipt of any tender on the due date. The late
tenders / samples received by Tender Receiving Officer from Tender Box shall
also be entered in the above register after the closing entry of the timely
received tenders / samples.

12.21.5 The Tender Opening Officers will put their signatures with date and time at
the end of last entry of timely received tenders / samples in the Tender Receipt
Register in token of their having taken over the tenders mentioned therein on
the due date of opening. Late tenders / samples will be handed over by Tender
Receiving Officer to the concerned Materials Management Officer after
obtaining acknowledgement.

12.22 Opening of tenders

12.22.1 The tenders can be opened on any working day. If any due date happens to
be unscheduled holiday then next working day may be fixed.

12.22.2 Manual tenders are to be opened at 16.00 Hrs.(17.00 Hrs. in Mumbai & Uran)
and e-tenders are to be opened at 15.30 Hrs. (16.30 Hrs. in Mumbai & Uran)
on the day they are due to be opened. Even in board purchase bids should be
opened by the member of the board in the presence of interested bidders.
(whether bidders turn up or not on specified time and location for price bid
opening, is their choice.

(MM/10/2016 dated 23.03.2016)


12.22.3 - Deleted -

12.22.4 The Tenders / bids will be opened by a team of two officers as per clause
12.21.

12.23 Numbering of tenders / disclosure of prices / reading out the rates

12.23.1 Numbering of Tenders

140
a. The Tender Opening Officers will encircle the rates and terms and conditions
and put their initials. If there is any cutting, overwriting or erasing that will
also be stated and signed by both the officers. Total number of sheets in the
bid will be mentioned on the first sheet of bid and all the sheets should be
initialled by both the officers opening the bid and the bid will be given Serial
number. As for example, if 7 bids have been received against one particular
enquiry, then bids should be numbered as 1/7, 2/7 and so on. The bids which
are received by post after due date should be marked 'Late' tender with No.
8/7 and so on. The samples received along with the tenders should also be
signed by both the officers. If it is not possible to sign on the samples then
those samples should be sealed with the label mentioning the name of the
firm. Name of the firm should invariably be recorded on the sample, if not
given already.

b. All envelopes are also to be retained on the record and these are to be
initialled by both the officers authorised to open the tenders.

c. The Section concerned whose tender is due on that particular date will be
present at the time of opening of the tender with the tender register. Both
Tender Opening Officers will sign the register against the name of the firms
whose bids have been received. The summary/remark in respect of the offers
received, as clause 12.17.1 above, shall be recorded by the tender opening
officers, immediately following the entries made for the individual offers.
Thereafter, the tender opening officers should make sure that no
space/pages are left blank between the last entry of particular tender (which
has been opening by them) and the starting page of the next tender
(appearing in the register), by crossing out the blank space/pages with the
remark “space/page cancelled” and should also initial on these pages.

12.23.2 Reading out the rates:

a. In the public opening, only the total prices or group-wise prices, if sought as
per tender should be read out in addition to delivery schedule and major terms
and conditions. Offer should not, repeat not, and be circulated amongst the
bidders' representatives.

12.23.3 Disclosure of prices

a. Bids are to be treated as confidential documents and save at the time of


public opening of tenders, prices quoted are not to be disclosed.

12.24 Opening of tenders

(MM/01/2015 dated 16.03.2015)

141
12.24.1 Tenders are to be opened at 15.00 Hrs. (1700 hrs in Mumbai & Uran) on the
day they are due to be opened.Unless good and sufficient reasons exist (which
must be recorded on the file) all bids (both techno-commercial and price bids),
including bids for service contracts, estimated to cost Rs.1.00 Lakh and above,
except for price bids of tenders with provision for Reverse Auction must as a
rule be opened in the presence of bidders / authorized representatives of
bidders.

142
(MM/10/2016 dated 23.03.2016)
(MM/113/2023 dated 08.12.2023)
12.24.2 The matrix for technical / techno-commercial / commercial must be worked
out in advance (of opening of techno-commercial bids) by the BEC
Formulation Committee (in cases exceeding Rs 10 lakhs) and approved by
the Competent Purchase authority specified in clause 34.1 along with BEC.
The matrix in which the bidders will be required to fill up the bid data will be
designed objectively to cover all techno-commercial points of the tender
required for evaluation and will be kept as a part of tender documents, for the
bidders to fill up the same and submit along with offers. Bidders should be
asked to indicate their compliance by clearly mentioning as “Confirmed” or
“Not Confirmed”, to avoid any misinterpretation. Format for Bid matrix should
also have provisions for indicating the reference/location (page No. / Annexure
etc.) of the respective detail(s)/document(s) enclosed in the bid, so as to easily
locate the same for tabulation.

12.24.3 Price bids are to be opened only for the qualified bidders and signed by the
Tender Opening Officers immediately, in presence of the interested bidders.
Respective dealing officers/dealing assistants shall tabulating the details in the
matrix. It should be clarified in the Matrix relating to the priced bid opening that
priced data reflected in the matrix will be as quoted by the bidders and subject
to necessary correction based on detailed scrutiny of the priced bids. The
Comparative Statement vetted by Finance will be the basis for taking the
decision for placement of purchase order / award of contract. In case of QCBS,
the comparative statement will include the scores.

12.24.4 The officers opening the tenders should verify that only bidders / authorised
representatives of bidders who have actually submitted the bids are present.
Unauthorised representatives (or representatives of firms who have not
submitted the bid) should not be allowed to be present.

12.25 E-mail / fax offers

(MM/109/2023 dated 30.10.2023)


12.25.1 E-mail/ FAX Offers will not be accepted. However, in OEM purchases from
single source or where source of supply is pre-fixed, Fax / E-Mail offers may
be considered provided such offers are followed by confirmatory copy within
15 days of the date of receipt of offer (The processing of bids can begin after
approval by CPA without waiting for the confirmatory copy). However, in case
of purchase from OEM or their authorized Dealers/Distributors/ Stockists on
single tender basis, if they do not submit confirmatory copies even after
persuasion then such E-mail/Fax offers may be considered with the approval
of CPA under exceptional circumstances. Concerned L-1 shall have full power
to approve consideration of such E-mail/Fax offers.

(MM/26/2017 dated 21.06.2017)


(MM/113/2023 dated 08.12.2023)

143
12.26 Extension of tender closing / opening date and time

Extension of date and time of closing / opening of bids should be avoided as far
as possible. However, where it is in-escapable (valid and justified reasons for
such extension should be recorded in writing), the competent purchase authority
will be empowered for extension of date of closing / opening of bids, maximum
upto two weeks. Officer one level above the competent purchase authority will
approve any extension beyond two weeks. However, on the basis of BEC
Formulation Committee recommendations, CPA shall have powers to approve
extension of date of closing / opening of bids upto 4 weeks, as a consequence
of interactions with prospective bidders during pre-bid conference. Concerned
L-1 will have full powers to approve extension of closing / opening date of bids.

However, in case extension in closing/ opening date of bid is required due to any
policy guidelines as per clause no. 1.8.8, approval of CPA (L-1 has full powers)
shall be obtained.

Requests for extension of tender closing / opening date and time, received on
the date specified for the same, shall NOT be considered.

144
13 Tender Evaluation

13.1 Technical comments/Technical evaluation report on offers


(MM/113/2023 dated 08.12.2023)
13.1.1 In all cases where technical evaluation is involved, the offers shall be referred to
the concerned Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases). In case of QCBS, scores for all parameters
related to technical evaluation will also be sent by the concerned Nodal Technical
Agency (for cases under CPD)/ concerned Indenting Section (for other cases).

13.1.2 15(fifteen) days for LSTK/ 7 (Seven) days for every other purchases time will be
allowed to the concerned Nodal Technical Agency (for cases under CPD)/
concerned Indenting Section (for other cases) to furnish the Technical Comments/
Technical evaluation report in case of two bid system. In case OGEP, preparation
of technical evaluation report should be completed within 15 days time and will be
approved by Level II officer of design section within 3 days and forwarded to CPD
through Head Works.It will be ensured by the User Depts. that comments are
invariably furnished within specified time. Indentor / User will be fully responsible
for the acceptability of the materials recommended for purchase.

13.1.3 The representative from concerned Nodal Technical Agency (for cases under
CPD)/ concerned Indenting Section (for other cases) shall scrutinize the offers
received from bidders for providing Technical commernts. In case of QCBS, scores
for all parameters related to technical evaluation will also be provided by them.

13.1.4 The technical part of the comparative statement will be created along with the
technical comments/technical evaluation report by the indentor

13.1.5 The role of the indentor will be performed by technical project group in the case of
civil works.

13.2 Level for comments on offers


(MM/113/2023 dated 08.12.2023)
(MM/122/2024 dated 27.03.2024)

13.2.1 Level for technical comments on offers


In case of purchase of general nature of items such as bulbs, tubes and stationery,
technical comments will not be necessary. The level of representative from
concerned Nodal Technical Agency (for cases under CPD)/ concerned Indenting
Section (for other cases) for providing Technical Comments shall be as under:

Sl. No. CPA Level of Representative


(As per BDP) for providing technical
comments

1 L-I and above L-II

145
2 Head MM-CPD/L-II/Head MM (at units) L-III
3 Second Level MM-CPD/L-III/ Second Level L-IV
MM (at units)
4 Third Level MM – CPD/ L-IV / Third Level
MM
(at Units)
Tender value>Rs.25 Lakhs E4

Tender Value between Rs. 10 to Rs.25 E3


Lakhs

Tender Value less then Rs.10 Lakhs E1

In case the technical comments are provided by external consultants, the same
should be endorsed by representative from concerned Nodal Technical Agency
(for cases under CPD)/ concerned Indenting Section (for other cases) at the above
level.

13.2.2 Level for Comments on offers in respect to Financial conditions

Sl. No. CPA (As per BDP) Level of Representative from CPD-
Finance/Work Centre-Finance

1 L-I and above Head Finance-CPD/Head or I/c


Finance at Work Centre

2 Head MM-CPD/ L-II of Tender Second Level Finance-CPD or Work


Processing Group(for tenders Centre
being processed by other than
MM) /Head MM (at Work
Centre)

3 Second Level MM-CPD/ L-III of Third Level Finance-CPD or Work


Tender Processing Group(for Centre
tenders being processed by
other than MM) /Second Level
MM (at Work Centre)

4 Third Level MM – CPD/ L-IV of


Tender Processing Group(for
tenders being processed by
other than MM) / Third Level
MM (at Work Centre)

146
Tender value>Rs.25 Lakhs E4

Tender Value between Rs. 10 E3


to Rs.25 Lakhs

Tender Value less then Rs.10


E1
Lakhs

13.3 Comparative statement

13.3.1 After all the quotations have been opened, these will be handed over to the Dealing
asstt./Dealing officer concerned for making comparative statement.

(MM/04/2015 dated 28.04.2015)

13.3.2 All the bids received in respect of an enquiry or advertisement should be


tabulated in the comparative statement (in the standard from (Appendix-15)
prescribed for this purpose). In QCBS, the comparative statement will contain
scores in both stages under 'Two bid' system. All details required will be
entered in the statement. For the tenders invited under ‘Two bid’ system,
Comparative Statement should be prepared at each stage (i.e. after opening
of techno-commercial bid and price-bid) and the commercial part of the
comparative statement at techno-commercial stage and the comparative
statement at price bid stage will be duly vetted by Finance as per provisions
under clause-13.3.8 and 13.3.10 below.

13.3.3 Every section will ensure that the comparative statement is prepared within
shortest possible time, not exceeding 04 days of the receipt of the quotations
after techno-commercial bid opening and not exceeding 03 days after price
bid opening.

13.3.4 The commercial part of the comparative statement at techno-commercial


stage as well as the comparative statement at price bid stage will be prepared
and signed by the concerned Dealing Asstt ./ Dealing Officer of MM
department.

13.3.5 At the techno-commercial evaluation stage, the comparative statement should


be objectively prepared covering all the techno-commercial points of the
tender required for evaluation. Compliances and non compliances and scores
(in the case of QCBS) against all the requirements of BEC and the deviations
/ exceptions (if any) should be clearly spelt out in the comparative statement.

13.3.6 Documents available in public domain shall not be considered for qualification
of bids.

147
(MM/54/2020 dated 29.01.2020)
13.3.7 At the price-bid evaluation stage, it should be ensured that the rates mentioned
in the comparative statement are in one unit so that comparison can be made
at a glance. The final evaluation prices and scores (in the case of QCBS) for
each bidder should be worked out as per evaluation criteria and to be tabulated
in the Comparative Statement, after taking into account all the charges /
statutory levies, which are to be paid by ONGC. While evaluating the bids, the
closing currency exchange rate as applicable on the day prior to the price bid
opening as per “Daily” Closing exchange rate published on Thomson Reuters
internet site https://in.reuters.com/markets/currencies, upto three places of
decimal, will be taken into account for conversion of foreign currency into
Indian Rupees. The exchange rates presently appearing on the right hand
corner of the exchange rate chart of the said internet site shall be considered
as closing rate for the day.
(MM/113/2023 dated 08.12.2023)
13.3.8 The comparative statement will be checked and signed by the officer of
Materials Management/Tender processing group and Finance for vetting(only
for tenders exceeding the value of Rs.1,00,000.00 ) as per monetary limits
indicated below before the same is submitted with details / due
recommendations to Procurement Evaluation Committee (after price bid
opening)/ Competent Purchase Authority:

Monetary Value Level of Officers


Upto Rs.15 lakhs E 1 of MM/Finance/Tender Processing group
Above Rs.15 lakhs to Rs.75 lakhs E 2 of MM/Finance/Tender Processing group
Above Rs.75 lakhs to Rs.150 E 3 of MM/Finance/Tender Processing group
lakhs
Above Rs.150 lakhs E 4 of MM/Finance/Tender Processing group

13.3.9 The above check will be exercised by respective officers as far as possible. In
the event an officer of the required level is not available, an Officer immediately
next below level would exercise the check.

(MM/48/2019 dated 07.02.2019)


13.3.10 The comparative statement (commercial) will be checked by the associated
Finance. The comparative statement (commercial) will invariably be vetted within
shortest possible time, not exceeding 02 days of its receipt in Finance. Each page
of the comparative statement will be initialled / e-signed by both the Materials
Management Officer and the Finance & Accounts Officer as per above Monetary
limits.

13.3.11 In the cases where Procurement Evaluation Committee is required to be held, a


copy of the Comparative Statement should be made available to the members of
the Procurement Evaluation Committee at least 48 hours before the first meeting
of the committee.

148
13.3.12 However, for subsequent meetings of Procurement Evaluation Committee, copy
of CS and such details are not required to be sent to Committee members in
advance.

13.4 Clarification from bidders after tender opening

13.4.1 As a principle, clarifications from bidders after opening of tenders are to be


avoided in single bid system and after price bid opening in two bid system.

13.4.2 At the techno-commercial bid evaluation stage (under two bid system) also, post
tender clarifications should be avoided, as far as possible. In case implied
clarifications / confirmations exist in the bid on the issues involved, work center
may consider processing of the bid further on the basis of such implied
confirmations.

13.4.3 However, in case after opening of un-priced techno-commercial bids, if it is


observed that clarifications from the bidders on important techno-commercial
aspects are necessary for enhancing competition in the tender, seeking
confirmations from the bidders is allowed, on the issues where the bidder
confirms compliance in the evaluation matrix and contradiction exists on the same
issue due to lack of required supporting document in the bid (i.e. document is
deficient or missing) or due to some statement at other place of the bid (i.e. re-
confirmation of compliance) or vice-versa. The bid refers to un-priced bid in case
of two bid system. Bidders should be asked to indicate their compliance in terms
of works “Confirmed/Not Confirmed” to avoid any misinterpretation.

Accordingly, the following guidelines are provided to deal with various situations,
irrespective of the number of clear TA/CA bids received against the tenders:

(i) Situation: Bidder has confirmed compliance in the evaluation matrix and
given details in the bid, but either failed to enclose the required supporting
document or the submitted document is deficient.

Illustration: The bidder has claimed to meet the experience criteria in the
evaluation matrix and given the details of experience in the bid, but has not
submitted the supporting documents.

Guideline: Bidder can be asked to furnish the supporting documents.


However, the supporting documents should not contradict the details already
given in the original bid.

(ii) Situation: The bidder confirms compliance in the evaluation matrix, but
there exists a contradiction to compliance somewhere in the bid or the
catalogue etc. (or vice-versa).

Illustration: The bidder confirms to supply as per specification, in the evaluation


matrix, but the detailed bid / catalogue submitted with the bid indicates a
deviation to the specification.

149
Guideline: Bidder can be asked to furnish confirmation on the issue.
Documents in support of the clarification can be sought, if necessary, but such
document must not contradict the documents already submitted, otherwise the
bid should be rejected.

(iii) Situation: Bidder has not indicated any response to a clause of bid
document, in the evaluation matrix but there exists a confirmation to the said
clause in the detailed bid.

Illustration: Bidder has not responded whether payment terms of ONGC are
accepted, in the evaluation matrix. However, the bidder has confirmed
acceptance of payment terms elsewhere in the bid.

Guideline: No further confirmation is required from the bidder on the issue, as


the bidder has already confirmed his acceptance, notwithstanding his silence
in the evaluation matrix.

(iv) Situation: The bidder has taken clear deviation to any of the
terms/specification of the bid document.

Illustration: Against requirement of firm rates in a case of domestic bidding, the


bidder has linked his rates to foreign currency.

Guideline: Bid should be rejected straightaway, without any reference to the


bidder.

(v) Illustration: Bidder who has not submitted POA

(MM/10/2016 dated 23.03.2016)


Guideline: Bidder may be asked to submit original POA as deficient document.
However, it should be ensured that POA is submitted in the name of same
person who has signed the bid.

In cases of single bid system, similar approach shall be adopted for seeking of
confirmations from bidders. However, prior approval of CPA must be obtained
in such cases. Concerned L-1 shall have full powers in this regard.

It must be noted that no opportunity is to be given to the bidder if EMD is not


submitted along with the original bid and such bid should be rejected
straightaway.

(MM/48/2019 dated 07.02.2019)


(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)

150
13.4.4 Clarifications/ confirmations/deficient documents required from the bidders on
the technical issues shall be based on the technical comments from the
concerned Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases) and for other issues, it will be based on the
evaluation by CPD/Work Centre MM/Tender Processing Group and CPD-
Finance/Work Centre-Finance (for financial criteria etc.). In order to ensure
pointed query which is unambiguously understood by the bidders, the tender
requirement as covered in the provisions of the BEC, the details provided by
the bidder in their offer, the deficiencies in relation to the BEC requirement
should be brought out, while obtaining approval of CPA through Vertical Note.
Concerned Key Executive (Level I) will have full powers to approve seeking of
clarifications/confirmations/ deficient documents from the bidders..

With a view to widen competition in the tender where Post Bid Conference as
per Para 13.4.13 is not applicable, decision would need to be taken on case
to case basis as to whether one more round of clarifications need to be sought
from the bidders. In that case, the issues requiring second round of
clarifications/ confirmations/ deficient documents should be brought out in
vertical note for obtaining approval of CPA for asking the bidders to submit
clarifications/ confirmations/deficient documents after recording proper
justification for the same. Concerned L-1 Executive shall have full powers to
approve seeking the second round of clarification / confirmation / deficient
documents.

Cases where post bid conference as per para 13.4.13 is held, normally second
round of clarification shall not be required. However in exceptional situations
where second round of clarifications are unavoidable, approval of concerned
L-1 Executive shall be required recording proper justification.

(MM/10/2016 dated 23.03.2016)


(MM/113/2023 dated 08.12.2023)
13.4.5 The clarifications (commercial and technical including withdrawal of
exception/deviation taken by the OEM/OES) shall be sought by the concerned
dealing Officer in Tender Processing Section directly without holding the
Procurement Evaluation Committee.

13.4.6 It is to be checked that the bidders have confirmed compliance in the un-priced
bid as regards meeting of all the important BEC and tender conditions like
mobilisation fee, annual turnover and net worth etc. that is those conditions
whose actual compliance can be known only after price bid opening. In case
any ambiguity is observed during techno-commercial evaluation, specific
confirmation should be obtained from the bidder.

MM/86/2023 dated 27.02.2023


(MM/112/2023 dated 30.11.2023)

151
13.4.7 Clarifications should be sought from bidders, by specifying a reasonable cut-
off time for submission of clarifications/ confirmations/ deficient documents.
Sufficient time should be given to the bidders to submit their responses
depending upon the nature of clarifications/confirmations/deficient documents
which are required to be submitted. However, in the event of an unscheduled
holiday falling in the specified day of the ‘cut off time‘, the next working day
shall be treated as the ‘cut off time’. In all other situations, if an extension for
the ‘cut off time’ is felt necessary based on request received from the bidder(s),
approval should be obtained from CPA. Concerned Level-1 executive shall
have full power in this regard. Any proposal seeking extension in cut-off date
shall be initiated by the dealing officer giving full justifications for the same.
Such approval for the same should be obtained before the expiry of the
specified ‘cut off time’ and the decision should be communicated to all the
bidders from whom the clarifications/ conformations/ deficient documents have
been sought.

(MM/10/2016 dated 23.03.2016)


MM/86/2023 dated 27.02.2023

13.4.8 Clarifications / confirmations / deficient documents received after the stipulated


cut-off date can be considered only in exceptional situations depending upon
merit of the case, with the approval of CPA after recording detailed justification
for considering such clarifications / confirmations / deficient documents.
Concerned L-1 executive shall have full powers in this regard.

The proposal for considering the clarifications / confirmations / deficient


documents received after specified cut-off date against the first round or
second round shall be put-up for approval before evaluation of such
clarifications/ confirmations / deficient documents, along with detailed
justification.

13.4.9 The guiding principle in accepting clarifications is that the basic structure of the
bid already submitted by the bidder should not be allowed to change after
opening of bids.

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13.4.10 When clarifications are sought from a bidder, documents which have been
submitted by the bidder in response to clarification sought by ONGC and are
post Technical bid opening date can be accepted subject to the condition that
the basic structure of the bid and the vital techno-commercial BEC parameter
on the basis of which the bid has been originally submitted, should not change.

13.4.11 Any technical clarifications/confirmations/deficient documents required by the


User/Indenting Department should be routed through concerned Materials
Management/Tender processing group.

13.4.12 In the event of non-submission of ‘Bid Matrix’ by any bidder whose offer is
acceptable in all other respects, the ‘Bid Matrix’ should be obtained before
accepting such offer.

(MM/48/2019 dated 07.02.2019)


(MM/113/2023 dated 08.12.2023)
13.4.13 Post bid conference: (applicable for tenders valuing above Rs. 1 Crore):

Due to Multiple rounds of clarifications primarily arising out of bidders not


completely understanding the intent of clarifications sought by ONGC lead to delay
in processing of tenders. In order to avoid such delays, post bid conference shall
be held.

For holding Post Bid conference following process shall be followed:

i. Clarifications / confirmations / deficient documents required from each bidder as


brought out at para 13.4.4 shall be clearly spelt out in the letter to the bidders.

ii. Bidders shall be informed that in order to address bidders’ doubts, if any, only on
the clarifications / confirmations / deficient documents being sought, a post bid
conference shall be held by ONGC with bidders who seek to have the meeting, on
one to one basis. Interested bidders may attend the same. No issues other than
the listed queries pertaining to clarifications / confirmations / deficient documents
sought by ONGC shall be discussed in post bid conference.

iii) It shall also be informed to the bidders that if they choose not to seek/request for
a post bid meeting, it will be noted by ONGC that such bidder(s) has well
understood the query of ONGC.

iv) Accordingly, in case bidder has completely understood the queries and they have
no doubts, they may submit their replies within the date specified for submission
of clarifications.

v) Bidders who attend the post bid conference shall provide the following undertaking
immediately on conclusion of the post-bid conference:

153
“This is to confirm that we ….. (name of the bidder) have attended the post bid
conference on … and have fully understood the queries of ONGC issued vide their
Letter No. … Dated….”

(vi) Bidders shall depute their competent employee(s) /authorised representative(s) for
the Post-Bid Conference.

(vii) Only those bidders from whom clarifications have been sought shall be eligible for
post bid conference..

(viii) Bidder(s) shall be required to provide details (Name, Designation/status, mobile


no. etc) of its employee/(s)/authorised representative(s), who will attend Post Bid
Conference and those person(s) only will be permitted to attend the post-bid
conference.

ix) List of attendees along with their signatures shall be recorded.

x) The Post bid Conference shall be attended by the representative of Procurement


Evaluation Committee at level specified at para 10.3.1 and representative of
concerned Nodal Technical Agency (for cases under CPD)/ concerned Indenting
Section (for other cases) at level as per para 13.2.1.

13.5 Correspondence with bidders by indentors

13.5.1 Before finalisation of the tender, all correspondence with the bidders must be
done by concerned Materials Management/Tender processing group.
However, after placing supply order / contract, if considered necessary, the
indentor(s) may interact with supplier(s) / contractor(s) for any clarification
provided the same does not result into modification of any condition of supply
order / contract and does not involve financial implications. However, copy of
such correspondence must be marked to MM Department for record. In case
of LSTK projects, correspondences with suppliers/contractors shall be carried
out by Indentor/Project group/Project management consultant directly after
award of work in addition to MM.

13.5.2 It must be ensured that clarifications asked for by the Indentor(s) did not have
any bearing on the price aspect.

154
13.6 Request for extension in validity of bid
(MM/64/2021 dated 24.03.2021)
(MM/112/2023 dated 30.11.2023)
13.6.1 Tenders should be finalized within the stipulated original validity of the bids and
that cases requiring extension of validity should be rare. However, in the
exceptional cases where the concerned executives involved in processing of
tenders feel that it would not be possible to finalize the tender within the original
validity, extension in bid validity should be sought so as to ensure that a
minimum bid validity of 30days for MCoDP level cases and 21 days for non-
MCoDP cases is available from the date of price bid opening. Accordingly, Bid
Security validity should also be available for a further period of 30 days beyond
the said bid validity. However, seeking further extensions of bid validity and bid
bond validity should be avoided after price bid opening. In exceptional cases,
if extension is required in bid validity and bid bond validity, after price bid
opening, then the same should be obtained from the clearly established L-1
bidder (B-1 bidder in case of QCBS tenders) only. However, in cases where it
is required to have more than one source of supply or if the tendered quantity
is more than what L-1 bidder (B-1 bidder in case of QCBS tenders) can supply,
then in those cases bid and bid bond validity should be obtained from all those
bidders who are in contention for award of contract.

(MM/26/2017 dated 21.06.2017)

13.6.2. Bid and Bid Bond validity shall not be sought for the bids rejected and duly
approved by CPA.

(MM/68/2021 dated 02.08.2021)


13.7 Disclosure of Prices in the techno-commercial bid

13..7.1. Bidders should not indicate/disclose prices in techno-commercial (un-priced bid). In case
bidders indicate/disclose prices in techno-commercial (un-priced bid) or at any stage before
opening of price-bid, their bids shall be evaluated without giving any cognizance to such prices
(for any purpose) i.e. no cognizance for award of contract/rate reasonability/price negotiation).
Evaluation will be done as per Price Evaluation Criteria of BEC on the basis of prices quoted in
the price bid only.
If the bidder has indicated/disclosed some price in techno-commercial bid (at techno-commercial
stage) or at any stage before opening of price-bid, but has not indicated any price in its Price
Bid, its offer shall be considered as without any price and thus shall be rejected and in no case
price revealed in techno-commercial bid shall be considered for award.
A warning shall be issued by ONGC to such bidders intimating their senior management for
not repeating such mistake again.

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14 Rate reasonability and Negotiations

14.1 Reasonability of rates

(MM/64/2021 dated 24.03.2021)


(MM/113/2023 dated 08.12.2023)
14.1.1 Rate reasonability will be applicable in cost only or L-1 selection/evaluation
methodology. Procurement Evaluation Committee shall be required to establish
and certify the reasonability of rates of L-1 bidder received in a tender Rate
reasonability can be established in comparison to cost estimates and / or last
purchase rate (if available) and / or price trends prevailing in the market (if the
same can be determined depending on either the type of items being purchased
or if there is any published documents / data reflecting the price trends or if there
is relationship between raw material being used in manufacture of items like steel
is used for manufacture of tubular goods). When purchase is being dealt by MM
Department and does not fall under purview of Procurement Evaluation
Committee, dealing officer of MM in consultation with Indentor and Finance shall
ascertain the rate reasonability and put up the proposals for approval of CPA.
However, for cases dealt by departments other than MM, rate reasonability shall
be ascertained by dealing officer in consultation with finance. In such cases
minimum E-2 level of executives shall be consulted. While ascertaining the
reasonability of rates, comparison should be first done with Cost Estimates/LPR
(wherever available) without applying any escalation factor. Thereafter, suitable
escalation factor, if any, needs to be considered for ascertaining the reasonability
of rates. Accordingly, the case shall be processed for finalisation, if the rates of L-
1 bidder are considered to be reasonable on the basis of above analysis. Wherever
the rates of L-I bidder are substantially high as compared to cost estimates / or
LPR or not in line with the price trend prevailing in the market, a decision shall be
taken as to whether price negotiation need to be conducted.

14.1.1.1 (Applicable for QCBS tenders)

Refer para 11.3.7. When purchase does not fall under purview of Procurement
Evaluation Committee, approval process shall be as per 14.1.1 above.

14.1.2 In cases where one single contract is to be awarded but the price format consists
of number of line items involving either supply of items or services or both, in
addition to working out line item wise variation of rates w.r.t. LPR,a composite
variation percentage comparison with the LPR be also worked out considering the
estimated quantities indicated in the price format which are being considered for
evaluation.

14.1.3 While finalizing the consultancy contracts, the reasonability of the quantum of Man-
hours that would be required to complete the job should also be examined and
certified to be reasonable in addition to certifying the reasonability of Man-hours
rates.

156
14.1.4 In case LPR is in foreign currency or a portion of LPR is in foreign currency, then
the LPR or portion of it as applicable will be converted to Indian rupees for the
purpose of comparison by using the foreign exchange rate prevalent on the date,
the rate of which were adopted for converting foreign currency bids for preparation
of comparative statement.

(MM/10/2016 dated 23.03.2016)


14.1.5 – Deleted -

14.1.6 – Deleted -

14.1.7 Following guidelines are to be followed with regard the reasonability of prices
in PAC/nomination cases:

(i) The price quoted by the bidder may be compared with those at which the
bidder has supplied the same item / service to other oil company(ies) in
India. For this purpose, the bidder should be asked to provide the copy(ies)
of orders executed / currently in hand. In case the bidder has not supplied
the same item / service to other oil company in India, the bidder should be
asked to provide the copy(ies) of orders placed on him by any other oil
company anywhere in the world.

(ii) In case the price quoted by the bidder is found to be on a higher side,
negotiation should be done with the bidder to get best reduction in price.

(MM/114/2023 dated 20.12.2023)


(iii) In cases where the negotiation is done, Procurement Evaluation Committee
should certify, at the time of submission of final recommendation to
Competent Purchase Authority, that Procurement Evaluation Committee is
convinced that no significant reduction in prices would be achieved by
continuing the negotiations further.

(MM/10/2016 dated 23.03.2016) – Part of Sub para (iii) deleted.

(iv) The urgency, if any, of the safety and operational requirements shall be
certified by the indentor, duly approved by the concerned Level-1 officer.

(MM/26/2017 dated 21.06.2017)


(MM/79/2022 dated 17.10.2022)
(MM/114/2023 dated 20.12.2023)

157
14.1.8 Placement of order when one offer is received or Techno Commercial
evaluation ends up with only one TACA offer (at the overall tender level as a whole)

If after inviting Open/Limited tenders, only one offer is received against the tender or
Techno Commercial evaluation ends up with only one TACA offer , the order may be
placed on the bidder provided following conditions are satisfied:

i) The procurement was satisfactorily advertised and sufficient time was given for
submission of bids.

ii) The qualification criteria were not unduly restrictive; and

iii) Prices are reasonable in comparison to market values or if the requirement is


urgent.

The urgency of the requirement would be certified and approved, as per provisions under
para 14.1.7(iv).

However in such cases Competent Purchase Authority shall be as prescribed in BDP for
nomination cases under item No. 24.1(c), (d),(e) or (h) depending upon nature of
procurement. In case of price not being reasonable, negotiations or retender may be
considered as justifiable. Aforesaid cases will not come under the ambit of reporting
mechanism prescribed for nomination cases.

As and when a single offer situation gets triggered against a tender after opening of Price
bid, the Procurement Evaluation Committee shall need to be re-constituted at appropriate
level in relation to the level of revised CPA. The Procurement Evaluation Committee shall
deliberate and give the required confirmation that conditions as per (i), (ii) and (iii) above
are satisfied.

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14.2 Negotiations

(MM/07/2015 dated 18.07.2015)


14.2.1 There should not be any Price negotiations. Negotiations, if at all, shall be an
exception as provided herein below and shall be held with L-1/bidders(s)
eligible for purchase preference only.

a) For cases where quantity is non splitable/non dividable:

For the cases where quantity is non splitable/non dividable, the bidder who
quoted the lowest among the bidders eligible for purchase preference shall
be asked to match his rates with that quoted rate(s) of the bidder who
emerged L-1 on quoted basis. Subsequently negotiations shall be carried
out with that eligible bidder. In case the bidder refuses to match the rates with
L-1, then other bidders who are eligible for purchase preference as per the
prescribed guidelines shall be given a chance to match rates with L-1 in the
order of their ranking and further negotiations shall be carried out with that
bidder who matches the rates with the L-1.

In such situations, while asking the bidder to match the rates with L-1, it shall
also be notified that ONGC shall carry out negotiation with the bidder
subsequent to matching of rates.

b) For cases where quantity is splitable/dividable:

For the cases where quantity is splitable/dividable, the bidder emerging L-1
on quoted basis shall be called for negotiations. After carrying out the
negotiations with such bidder, all the bidders who are eligible for purchase
preference shall be asked to match the L-1 prices arrived at after negotiations
and quantity shall be divided among them (wherever applicable). However in
case none of the bidders matches, order for total quantity shall be placed on
the bidder who emerged L-1 on quoted basis.

(MM/64/2021 dated 24.03.2021)


(MM/99/2023 dated 25.08.2023)
(MM/109/2023 dated 30.10.2023)
(MM/113/2023 dated 08.12.2023)
14.2.2 Negotiations shall be recommended in exceptional circumstances only after
due application of mind and recording valid, logical reasons justifying
negotiations. Price negotiations shall be undertaken by Procurement
Evaluation Committee, only with L-1 bidder, on prior approval of concerned L-
1 officer, in any of the following exceptional situations, where the rates of L-1
bidder are substantially high as compared to cost estimates:

i. The items are proprietary in nature;


ii. The bidders have formed cartel;
iii. Sources are limited.

159
Para deleted (MM/112/2023 dated 30.11.2023)

The entire process of negotiation has to be concluded within a period of seven


working days from the date of approval and a decision needs to be taken based
on the reply received from the bidder port negotiation.

In case the Work Centre wants to continue the negotiations further beyond seven
working days , specific approval of the Competent Purchase Authority for each
additional round of negotiation should be obtained (full powers to concerned L-1)
providing detailed justification/exception for continuing the negotiation further.

14.2.2.1 (Applicable for QCBS tenders)

In QCBS tenders, price negotiations will generally not be resorted to. However,
price negotiation can be conducted with B1 bidder (with the approval of authority
empowered to allow negotiations in case of Non-QCBS tenders) to arrive at
reasonable price in the situations as brought out at para 11.3.7 above.

Negotiations shall be recommended in exceptional circumstances only after due


application of mind and recording valid, logical reasons justifying negotiations. As,
prices of different quality product may be different, therefore different prices
received in tender processed under QCBS should not be considered an indicator
for conducting price negotiation.

The entire process of negotiation has to be concluded within a period of seven


working days from the date of approval and a decision needs to be taken based
on the reply received from the bidder port negotiation.

In case the Work Centre wants to continue the negotiations further beyond seven
working days, specific approval of the Competent Purchase Authority for each
additional round of negotiation should be obtained (full powers to concerned L-1)
providing detailed justification/exception for continuing the negotiation further.

160
(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
14.2.3 Negotiations should not be misused as a tool for bargaining with L-1 (B-1
bidder in case of QCBS tenders) with dubious intentions or lead to delays in
decision-making. Convincing reasons must be recorded by the Procurement
Evaluation Committee recommending negotiations. Competent Purchase
Authority should exercise due diligence while accepting a tender or ordering
negotiations or calling for a re-tender and the time taken for according requisite
approvals for the entire process of negotiation and award of order should not
exceed 30 days from the date of submission of recommendations. In cases
where the proposal is to be approved at MCoDP level, a maximum of
additional 15 days shall be allowed. In no case should the overall timeframe
exceed the validity period of the tender and it should be ensured that tenders
are invariably finalised within their validity period. It is to be ensured that
negotiations are resorted to only in cases where reasonability of rates could
not be established, above conditions as per clause 14.2.2 (or in situations
brought out at para no. 14.2.2.1 in case of QCBS tenders) are satisfied and
bottom up accurate cost estimate ('should cost') is available to support
negotiations.

14.2.4 In cases where a decision is taken to go for re-tendering due to the


unreasonableness of the quoted rates, but the requirements are urgent and a
re-tender for the entire requirement would delay the availability of the item,
thus jeopardizing the essential operations, maintenance and safety,
negotiations would be permitted with L-1 bidder(s) (B-1 bidder in case of
QCBS tenders) for the supply of a bare minimum quantity, subject to
acceptance by the bidder. The balance quantity should, however, be procured
expeditiously through a re-tender, following the normal tendering process,
after due examination to see whether review of specification, scope of work
and tender conditions is required in future, to bring more competition.
(MM/114/2023 dated 20.12.2023)
(MM/117/2023 dated 29.12.2023)
14.2.5 Where it is required to have more than one source of supply (due to critical or
vital nature of the item), it is mandatory to pre-disclose the ratio of splitting the
supply (in accordance with prevailing instructions, so as to award maximum
quantity to the L-1 bidder (B-1 bidder in case of QCBS tenders)) in the Bid
Evaluation Criteria, after due deliberation in BEC Formulation Committee. This
must be followed scrupulously.

14.2.6 After due processing, if it is discovered that the quantity to be ordered is far
more than what L-1(B-1 bidder in case of QCBS tenders) alone is capable of
supplying (in tenders where bidders are allowed to quote part quantities) and
there was no prior decision to split the quantities, then the quantity being
finally ordered should be distributed among the other bidders in a manner that
is fair, transparent and equitable as given below:

161
(i) If the requirement of tender quantity cannot be met by L-1 bidder (B-1 bidder in
case of QCBS tenders), negotiations will be carried out with the approval of
Competent Purchase Authority (CPA).

To expedite the process of negotiations, all other acceptable bidders will be


advised to submit their confirmations in sealed envelopes, to match their rates with
those of evaluated L-1 bidder (with Target Price worked out for matching by B2,
B3 Bidders based on provisions at para no. 11.3.8_above in case of QCBS
tenders).

(ii) Sealed covers will be opened in the order of ranking originally established and
in the presence of bidders’ representatives who choose to be present. Bidders who
match their prices with the L-1 bidder (with the Target Price worked out for
matching by B2, B3 Bidders based on provisions at para no. 11.3.8_above relevant
in case of QCBS tenders) would be considered for award on basis of their original
ranking and to the extent of quantity / number offered by them. Opening of sealed
cover will be stopped when the total quantity requirement is met

14.2.7 Counter-offers to L-1, in order to arrive at an acceptable price, shall tantamount to


negotiations. However, any counter-offer thereafter to L-2, L-3, etc., (at the rates
accepted by L-1) in case of splitting of quantities (as pre-disclosed in the tender as
per para 16.1.1 or due to limited capacity of L-1 bidder as per para 16.1.1 & 16.1.2)
shall not be deemed to be a negotiation.

(MM/64/2021 dated 24.03.2021)


14.2.8 If L-1 bidder (B-1 bidder in case of QCBS tenders) backs out, there should be
re-tendering in a transparent and fair manner. The Competent Purchase
Authority may in such a situation call for Limited or Short Notice tender or
nomination basis, if so justified in the interest of work, on the basis of
examination and recommendation by Procurement Evaluation Committee.

(MM/10/2016 dated 23.03.2016)


(MM/113/2023 dated 08.12.2023)
14.2.9 For the cases valuing upto Rs 10 lacs also, convening of Procurement
Evaluation Committee is necessary for recommending and conducting
negotiations. The Procurement Evaluation Committee in such cases shall
consist of one officer each from Tender Processing Group and Finance as per
para 10.3.1. Such recommendations for negotiation of said Procurement
Evaluation Committee shall require the approval of concerned Level-1 and
shall be put up through the Level-2 executive of the indenting department.

14.2.10 In respect of cases where assistance of World Bank and other international
funding agencies like IMF, ADB etc. is involved, the procedure specified by
the respective agency will be followed.

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14.3 Cancellation / re-invitation of tenders

(MM/109/2023 dated 30.10.2023)


14.3.1 Cancellation of tenders:

a. A tender shall be deemed to have been cancelled to the extent a demand is


withdrawn. Advice regarding the cancellation action shall be conveyed to the
indentor. In such case approval of the CPA would be required for the
cancellation. However, concerned L-1 shall have full power in this regard.

b. Cancellation of tenders for any other reason, to be recorded in writing, shall


require the approval of the purchase authority one step higher than the
competent purchase authority. However, concerned L-1 shall have full power
in this regard.

c. All concerned must ensure that while taking any action of rejection/recall of
tenders, clear reasons are recorded on the file, strictly in terms of the
provisions stipulated in Bid Evaluation Criteria, Materials Management
Manual and other specific instructions issued from time to time. .If the
reasons for cancellations / reinvitations of tender are not adequately justified,
the concerned authority may take up the issue with the concerned indentor
for taking adequate measures to firm up requirement before placement of
purchase indent so that need for cancellation / re-invitation of tenders does
not arise in future.

14.3.2 Re-invitation of tenders

MM/86/2023 dated 27.02.2023

a. In the event of re-invitation of bids, the approval will be obtained (through the
CPA) from the authority one level higher than the CPA. However, concerned
L-1 shall have full power in this regard. The closed / cancelled tender should
in no case be revived

(MM/10/2016 dated 23.03.2016)


b Such re-invitation of bids, on a limited basis, shall also include all the bidders
who quoted against the original tender.

c Similarly, in the case of open tenders intimation regarding re-invitation of


tenders will be sent to all the bidders who quoted against the original tender.

d Reasons for re-invitation of tenders in all such cases will be recorded.

MM/102/2023 dated 19.09.2023


14.4 Evaluation of SOR based tenders for Civil Works in Assam:
Bidders will have to quote only one figure as % Above (maximum 10%) or
At par of estimated cost. Any bid with below “at par” and above “10%” of
estimated cost shall be rejected straightway.

163
ONGC shall evaluate the inter-se-ranking of the bidders and conduct Draw
of Lots amongst the eligible bidders in case of identical prices, and contract
shall be awarded accordingly.

The bids conforming to the specifications, terms and conditions stipulated in


the tender documents and considered to be responsive will be evaluated as
per the procedure mentioned below:

Bid will be opened on schedule date & time as specified in the NIT and all
the bids where the bidders have quoted the lowest price (within the
permissible percentage as per NIT) in e-tender portal will be selected for
conducting Draw of Lots (DoL). DoL will be conducted within a short period
after Bid Closing Date. In the DoL 7 (seven) numbers of bidders will be
selected first, in the order of B-1 (Bidder-1), B-2, B-3, B-4, B-5, B-6 and B-
7. The technical and commercial scrutiny will be carried out for these seven
bidders only. If the bid of bidder B-1 is found to be technically and
commercially qualified, B-1 will be the successful bidder (Priority-1 bidder)
and the contract will be awarded to B-1. If B-1 is not found to be technically
& commercially qualified and B-2 is technically and commercially qualified,
B-2 will be awarded the contract, ---- and so on; i.e. whoever becomes the
first technically qualified bidder in the order of B-1 →B-2→B-3→ B-4→ B-
5→ B-6→ B-7, will be the successful bidder (P-1). In this way, P-1(Priority-
1) and P-2 bidders will be selected. The contract will be awarded to the P-1
bidder only. However, in case the bidder P-1 is not able to carry out the job
or if the Contract is proposed to be awarded to more than one bidder due to
huge volume of work / to divide the work amongst more than one bidder,
then in that case P2, P3, P4 may be awarded the job. However, provision to
distribute the Contract amongst more than one bidder should be specifically
stipulated in the tender.

In case, none of these seven bidders are found to be techno-commercially


acceptable or Contract is proposed to be awarded to more than 7 bidders,
the draw of Lot will be again conducted to select 7 more bidders as B-8 to
B-14 and similar steps will be followed thereon as explained above. The
system of conducting further of draw of lots will be followed till a technically
acceptable bidder / complete tendered requirement is met.

Bidder should note that deficit documents will not be sought from the
bidders. The bids will be evaluated as per the documents received from the
bidders at the time of bid opening. Any bid, which is not supported with the
requisite documents as per the NIT, will be rejected straightway without
seeking any further clarification and deficit document.

The rates at which the Contracts will be awarded to the bidders shall be
subject to matching the lowest rates received in the tender.

164
Note: Work centre will frame and incorporate suitable clauses in BEC /
tender for SOR based Civil Works pertaining to Assam accordingly. Under
this scenario, bids may be rejected after price bid opening.

MM/103/2023 dated 19.09.2023


MM/113/2023 dated 08.12.2023
14.5 Evaluation of tenders for ‘Hiring of light vehicles’ in Assam
1. Applications to be collected through online portal. A unique number is to be allotted
to each applicant after submission of the application.

2. Bids will be invited at ONGC offered rates on “one-applicant-one-vehicle” basis.

Offered rates for Services and monthly wages of regular driver (as applicable, to
be decided by the Work Centre) shall be upfront declared by Work Centre in NIT.

Only one online application will be accepted from one applicant. If at any stage it is
found that an applicant has submitted more than 1 (one) application in his / her
name against the tender, i.e. either after the submission of applications or during
scrutiny of applications of provisionally selected applicants through Draw of Lots or
during pendency of award of contract, then all the applications submitted by such
applicant(s) will be rejected and the Performance Security submitted, if awarded
contract(s) to such applicant(s), will also be forfeited.

3. Draw of Lots to be held among all the applicants in presence of applicants/parties


and members from the Indenting Department, Finance Department and MM
Department.

4. Notice shall be drawn to attend the Draw of Lots and attending applicants, or any
person (public) present during the Draw of Lots is randomly asked to pick up a
number for the Draw of Lots. List of provisionally selected applicants including
waiting list applicants (if necessary) duly signed by company representatives
attending the Draw of Lots shall be published in ONGC’s tender website as well as
e-tender portal and displayed in the Notice Board after the Draw of Lots.

5. A few applicants will be kept in a waiting list with a validity period of 1(One) year
from the date of Draw-of- Lots for any future requirement. These applicants,
subjected to fulfilment of NIT conditions, shall be considered for filling up of vacant
positions in the Priority List resulting from any rejection of selected
application(s)/cancellation of contract(s) after Lottery or additional requirements of
the Company, if any. However, ONGC reserves the right to extend the validity of
the Waiting List/Priority List suitably.

6. Short listed applications shall be scrutinized as per criteria of the tender by the
indenting department and to be vetted by F&A department wherever necessary.

7. All the eligible applicants short-listed vide Draw of Lots shall be required to submit
additional documents (like Affidavits, Address proof, Age proof, etc. to be decided
by work Centre) which shall be further scrutinized jointly by Indenting Department,

165
Finance Department and MM Department. All the eligible applicants short-listed
vide Draw of Lots are also required to submit Bid security.

8. MM Department to process Procurement Evaluation Committee Minutes


recommending award of contracts to the eligible short-listed applicants and place
it before the Competent Purchase Authority for approval.

9. Issuance of LOA to the approved applicants (Contractors).

10. Signing of Formal Contract Agreement by the contractors after submission of


Performance Security.

11. In the event, technically qualified applicants are less than the required Company’s
requirement from the first Draw-of-lot, then the balance requirement shall be
selected through a second Draw-of-lot. Subsequent Draw-of-lots in the above
manner shall be conducted till the requirement of technically acceptable applicants
is exhausted. ONGC reserves the right to shortlist the appropriate nos. of
applicants in the Draw-of-lots.

Note: Assam Asset shall frame BEC/detailed tender clauses in consultation with
Oil India Limited and the same shall be approved by concerned L-1 Executive.
Other work centres in North East may adopt the BEC tender clauses finalised by
Assam Asset.

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15 Acceptance and Award of tender

15.1 Consideration of offers

15.1.1 For tenders other than QCBS, lowest price bid may be determined from among
those tenders which are technically and commercially acceptable.

15.1.2 For QCBS tenders, the following points should be taken into consideration for
placement of an order:-

a. The orders are to be placed on the highest techno-commercial score

b. Techno-Commercial Score = (Quality Score assigned to bidder x


Technical weight %) / 100 + (Lowest bid value of all bids x Commercial
weight %) / Bidder’s Price

c. Bids which do not conform to the specifications are to be ignored


straightaway.

d. Bids for which technical score is less than the minimum threshold as
specified in the tender are not to be shortlisted for Price Bid opening.

e. Highest scoring bid may be determined from among those tenders which
conform to all mandatory technical and commercial criteria and have a
technical score greater than the minimum threshold specified in the
tender.

15.2 Acceptance of tender

15.2.1 Tender shall be accepted by the officers as per the powers delegated in
the BDP. In case the prescribed level officer is not available, then the case
shall be put up to the next higher level officer.

15.2.2 In case after opening of price bid, bidder has not complied with the required
stipulation/conditions of tender like financial criteria etc. then such offers
should be rejected.

15.2.3 A firm which has been engaged to provide goods or works for a project and any
of its affiliates should be disqualified from providing consulting service for the
same project. Conversely, a firm hired to provide consulting services for the
preparation or implementation of a project, and any of its affiliates, should be
disqualified from subsequently providing goods or works or services related to
the initial assignment for the same project.

Consultants or any of their affiliates will not be hired for any assignment, which
by its nature, may be in conflict with another assignment of the consultants.

15.3 Signing of purchase order / contract

15.3.1 After finalization of tender, award of LOA/NOA should not be withheld


without any justified reasons beyond prescribed time norms for the same.

167
Further, detailed purchase order shall be issued within 10 days from receipt of
acceptable PBG/SD and in case of payments through Letter of credit; LC shall
be opened within a period of 7 days from issue of formal order, except for cases
where Income Tax NOC is to be obtained.

15.3.2 Similarly, detailed contract shall be signed within15 days from receipt of
acceptable PBG/SD . However PBG/SD should be submitted within 15
days from the date of NOA.

15.3.3 It should be ensured that all the documents / conditions existed in the
tender document and all conditions mutually agreed between ONGC and
the bidder during tender stage, must invariably be incorporated in the
supply order/contract. In case of centralized procurement, a copy of
complete tender document, including all terms & conditions and
amendments (if any) issued thereto, must be circulated to respective
consignees along with the supply order. In order to make a contract legally
enforceable, all concerned must ensure that the contract is properly signed
& stamped by the contractor before it is signed by ONGC's representative.

(MM/32/2018 dated 28.03.2018)


(MM/113/2023 dated 08.12.2023)
15.3.3.1 Wherever there is a change in technical specifications, scope of work or
other financial conditions during the tendering process, the concerned
dealing officer from CPD/Work Centre/Tender Processing Group, if
considered necessary, will forward the technical specifications and scope
of work to the concerned Nodal Technical Agency (for cases under CPD)/
concerned Indenting Section (for other cases) and financial aspects to the
finance team for vetting before incorporating the same in the PO/contract.
The specifications/scope of work shall be vetted by the concerned Nodal
Technical Agency (for cases under CPD)/ concerned Indenting Section (for
other cases) within 3 working days and financial aspects by Finance within
4 working days.

15.3.4 The service contract (including charter hire of rigs) should be for a firm period.
However, the provision of automatic extension of service contract for the time
required for completion of the job in progress on the date of expiry of the
contract on the same rates, terms and conditions should be incorporated.

15.3.5 Use of uniform percentage to fix the delivery cost in Purchase Orders in
ICE

Following uniform percentage should be used for the various overhead cost in
the purchase orders for imported materials across all locations, the inland
freight as given below shall be applicable for indigenous ex-works cases as
well:

Sl. Particular Expenditure Supply provision in


NO percentage of CIF value of
goods

168
1. Bulk cargo such as Port charges 0.25% of CIF value
pipes, chemicals Customs clearance 0.25% of CIF value
etc. for Mumbai charges
Offshore Loading, unloading and 2.50% of CIF value
inland transportation
upto ultimate consignee
2. Bulk cargo such as Port charges 0.25% of CIF value
pipes, chemicals Customs clearance 0.25% of CIF value
etc. for Onshore charges
projects such as Loading, unloading and 4.00% of CIF value
Mehsana, inland transportation
Ankleshwar, upto ultimate consignee
Jodhpur etc.
3. To all items other Customs clearance 1% CIF value
than 1 & 2 above charges,
Loading, unloading and
inland transportation
upto ultimate consignee

Note:
(MM/10/2016 dated 23.03.2016) Note (i) - Deleted -

(i) contracts for related and dependent works, should not be awarded to same or
sister firms
(ii) in order to avoid errors in calculating various charges involved in a contract,
due care should be taken while defining various elements of a formula
adopted for calculating various charges in a contract. Further, wherever
necessary Finance/Legal departments may also be consulted while
formulating a formula and the applicable elements, before finally adopting the
same.

(MM/32/2018 dated 28.03.2018)


15.3.6 Standard Operating Procedure (SOP) for signing of the Contract after
placement of NOA is detailed at Appendix - AA

15.4 Verification of the authenticity of the documents submitted by the bidders

(MM/26/2017 dated 21.06.2017)


15.4.1 Whenever any distinctive complaint has been received regarding submission of
the forged documents/certificates/information, a thorough investigation should
be conducted for verification of the authenticity of documents submitted by the
successful bidder and if it is established that documents have indeed been
forged, appropriate action should be taken against defaulting vendor/contractor.

15.5 Change of valuation type in PO against ICB tenders

15.5.1 If the PO is to be placed on a foreign vendor, no modification would be required


in the 'valuation type' as it will automatically get adopted to in the system to
STIM or SPIM.

169
15.5.1.1 If the PO is to be placed on a domestic vendor, the 'valuation type' needs to be
changed to STID or SPID. This can be done by concerned P.O. creator without
any modification in the PR. However, if the material has not been sourced
indigenously, then the PO creator would have to create Material Master record
for changing the valuation type to STID or SPID in an ICB tender where order is
to be placed on a domestic vendor.

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16 Miscellaneous

16.1 Splitting of tenders / purchase orders

16.1.1 Tenders are generally finalised on item wise lowest offer basis. Items in a
tender may be split up in more than one order depending on the merit of each
case. In case of operational needs, tender for part of items may be finalised
with the approval of CPA. For finalisation of tender for the remaining items, the
case will be submitted to the Competent Purchase Authority for complete
tender reflecting therein the facts that tender for part items in this case has
already been finalised.

16.1.2 Sometimes it becomes essential to place order simultaneously on two


firms to safeguard against the chance of one of the firms failing to execute
supplies or when material is urgently required and where a single firm
cannot supply the required quantity in time. Where the tenders are being
called and the volume of the purchase is likely to be very large and where
it is important because of this to ensure that no single bidders gets order
for more than the quantity he can supply on the ground that he is the lowest
bidder. Similarly, in case of tenders for critical items/services depending
entirely on one supplier for material could affect operations due to
unforeseen failure on the part of supplier. When the tender is floated,
bidders are specifically asked to quote(a) for the whole purchase or (b) for
a fraction of unit of the purchase and methodology as per provision
contained in para 14.2.5 & 14.2.6 for splitting of orders must be follow.

16.2 Purchase of Machinery and Equipment

(MM/10/2016 dated 23.03.2016)


16.2.1 – Deleted -

16.3 Tender Monitoring System

16.3.1 Under TMS, on receipt of PR by the respective purchase section, the date
of receipt of PR shall be required to be entered in the prescribed field
provided in the system. Accordingly, the scheduled date(s) of completion
of subsequent activity (ies)and the actual date of completion for the same
activity (ies) shall also be required to be entered into by the dealing officers
of the respective section on a regular basis in sync with the respective
activity. In cases, where seeking clarifications becomes necessary, the
date for completion of next activity (ies) shall be re-scheduled. Concerned
officials should ensure proper entries in TMS. For the purpose of entering
necessary dates/details in the TMS, transaction code ZMMTDR1 or
ZMMTMS should be used.

171
16.4 Guidelines for officials with personal interest in companies/agencies
participating in the tender

16.4.1 Any official involved in tender formation, processing, evaluation and / or


award and having personal interest in any of the Companies/agencies
participating in the tender, shall refrain from participating in the tender
process. In such situations, the concerned official shall intimate to his next
higher authority his inability to participate in the tender process and obtain
approval nominating an alternate official for that particular case.

16.5 Earnest Money Deposit / Bid security

(MM/63/2021 dated 22.03.2021)


(MM/65/2021 dated 06.04.2021) (Circular No. 05/2022 dated 25.01.2022)
(MM/66/2021 dated 23.07.2021)
(MM/98/2023 dated 24.08.2023)
16.5.1. No earnest money deposit / bid security will be necessary for purchases upto Rs.10.00
lakhs. Earnest money deposit/ bid security will also not be necessary for purchases
from Central Govt. Departments and Central Public Sector Undertakings. No earnest
money shall also be necessary for purchase / service contracts on nomination/
PAC/OEM basis.

MM/65/2021 dated 06.04.2021


MSEs possessing valid Udyam Registration Certificate as notified vide Gazette
notification no. S.O. 2119 dated 26.06.2020 (as amended) issued by Ministry of Micro,
Small and Medium Enterprises will be exempted from furnishing bid security / earnest
money deposit and will be eligible for other benefits as per PPP for MSEs order,2012
against open and limited tenders, subject to following conditions:

a. (Applicable for procurement of Goods/ procurement of equipment alongwith


associated services like Installation, Commissioning, Training, AMC etc)

Bidder is participating in tender as manufacturer of the quoted item and not as a


trader/dealer.

b. Bidder submits the copy of valid Udyam Registration Certificate, as Micro or Small
Enterprise.

Firms Recognized as ‘Start-ups’ by DPIIT(Department for Promotion of Industry and


Internal Trade, Ministry of Commerce and Industry GOI) will also be exempted from
furnishing bid security / earnest money deposit subject to submission of documents
as mentioned at Para 90.3 for all types of Procurement.

(MM/50/2019 dated 04.07.2019) (MM/53/2020 dated 17.01.2020)


EMD / Bid Security can be obtained from bidders in any one of the following
modes:

(i) NEFT/RTGS/Electronic fund transfer to designated account of ONGC


as mentioned in ITB of tender document.

Deleted (vide MM/98/2023 dated 24.08.2023)

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MM/107/2023 dated 30.10.2023
MM/110/2023 dated 01.11.2023
MM/123/2024 dated 16.04.2024
(ii) (a) Electronic Bank Guarantee (e-BG) (as per prescribed proforma)
from banks acceptable to ONGC, valid for 30 days beyond the required
validity of bid.

(ii) (b) SFMS Bank Guarantee(SFMS BG) (as per prescribed proforma)
from banks acceptable to ONGC, valid for 30 days beyond the required
validity of bid:

The default/Preferable mode of submission of Security Deposit will be


NEFT/RTGS/Electronic fund transfer or e-BG, however, whenever a
bidder submits SFMS BG towards Bid Security, the bidder will mandatorily
be required to submit letter from issuing bank that it is unable to issue
NeSL based e-BG as on date. Such letter should accompany the SFMS
BG.

Note: The verification and acceptance of e-BG/SFMS BG towards bid


security shall be done similar to provisions applicable for security deposit
at para 16.6.6.

(iii) Irrevocable letter of credit (as per prescribed proforma) valid for 30
days beyond the required validity of bid, duly confirmed by Indian
Nationalised / Scheduled banks will be acceptable only from foreign
bidders.

16.5.2 The following slab based on different amount of expenditure sanction will
be used to determine EMD.

(MM/105/2023 dated 26.09.2023)


However, the maximum limit of EMD/Bid Security for a tender shall be as
follows:
Bidder Maximum limit of EMD/Bid Security
Indian Rs.8 crore
Bidder

Foreign US$ one million in case EMD/Bid Security submitted in


Bidder US Dollars

INR Equivalent of US$ one million by converting USD


to INR using currency conversion rate as per para
16.5.3 of IMMM in case EMD/Bid Security submitted in
INR

Amount of Expenditure Sanction Amount of EMD / Bid Security

173
<= Rs.10 Lakh Nil

>Rs.10Lakh, <= Rs. 5 Crore @2% of total estimated cost put to


tender

>Rs. 5 Crore, <= Rs. 15 Crore Rs. 10 Lakhs + 1.5% on amount


exceeding Rs.5 Crore

>Rs.15 Crore, <= Rs. 25 Crore Rs. 25 Lakhs + 1% on amount


exceeding Rs.15 Crore

.>Rs. 25 Crore Rs. 35 Lakhs + 0.5% on amount


exceeding Rs. 25 Crore

Note :

i) EMD amount once fixed in NIT based on the original expenditure sanction
conveyed shall not be modified on account of variation in quantity/ increase in
scope etc if any, after invitation of tender.

ii) Rounding off of EMD amount shall be done to nearest thousand in case of INR
and to nearest hundred in case of US$.

Rounding off should be done in following manner:

In case of INR, if EMD amount is Rs. 12,15,785 it will be rounded off to Rs.
12,16,000.

Similarly EMD amount of Rs.12,15,385 will be rounded off to Rs. 12,15,000.

In case of USD, if EMD amount is USD 17,368 it will be rounded off to


USD17,400.

Similarly EMD amount of USD 17,312 will be rounded off to Rs. USD 17,300.

(MM/54/2020 dated 29.01.2020)


16.5.3 While working out the EMD, the closing currency exchange rate as per “Daily”
Closing exchange rate published on Thomson Reuters internet site
https://in.reuters.com/markets/currencies, upto three places of decimal, as
applicable on date of approval of BEC by Competent Authority in terms of
para 34.1.2 will be taken into account for conversion of Indian Rupees to US
Dollars. The exchange rates presently appearing on the right hand corner of
the exchange rate chart of the said internet site shall be considered as
closing rate for the day. The EMD shall be submitted in Indian Rupees by
Indian bidders and either in US Dollars or in INR by foreign bidders.

16.5.3.1 Offer received with shortfall in EMD should not be accepted.

174
(MM/26/2017 dated 21.06.2017)
(MM/113/2023 dated 08.12.2023)
16.5.4 The Bid security of unsuccessful bidders will be returned within 5 days of
finalization of the bid/LOA. The Bid Security of successful bidder will be
returned within 5 days from the date of acceptance (after legal vetting and
confirmation from the bank) of Security Deposit/Performance Security
submitted by the bidder.

a. At the time of seeking purchase approval, Procurement Evaluation


Committee should invariably recommend for release of EMDs of
unsuccessful bidders. In cases where Procurement Evaluation
Committee is not required, while submitting the purchase proposal for
approval of CPA, dealing officer/official must also incorporate the
recommendations for release of EMDs to unsuccessful bidders.

(MM/112/2023 dated 30.11.2023)


b. The Competent Purchase Authority (who has approved award of
contract) will have powers to approve release of earnest money / Bid
Bond / bid security. However, concerned Level-1 Executive will have full
powers in this regard.

c. After obtaining approval of CPA, the onus and responsibility shall be of


dealing officer/official to ensure release of bid bonds/EMD to
unsuccessful bidders, within 5 days.

(MM/50/2019 dated 04.07.2019)


(MM/112/2023 dated 30.11.2023)
d. Invoking/forfeiting of Bid Security / EMD

Approval of Level-1 executive will be obtained for invoking / forfeiting the


Bid Security / Bank Guarantee(s) including for MCoDP level cases.

(MM/78/2022 dated 10.10.2022)


The GST as applicable on forfeiture of Bid Security (EMD) shall be borne by
ONGC.

In charge MM to monitor compliance of release of EMD and security


deposits to bidders.

In case of requirement of any extension of Bid Security/ EMD, the same


should be taken up at least 10 days prior to expiry of Bank Guarantee.

(MM/56/2020 dated 20.04.2020


(MM/113/2023 dated 08.12.2023
16.5.5 a. The EMD/bid bond/bid security of bidder(s) under following situations

175
shall also be released, only on receipt of request to this effect from the
bidder(s) against submission of an undertaking by the bidder(s) as per
format given at para 16.5.5.1:

i. Bidder(s) whose bid has been rejected with the approval of CPA and
in case rejection of bid is not an incident that attracts forfeiture of bid
security as per extent proviso.

ii. Bidder(s) whose bid has been rejected with approval of CPA on
account of non-extension of bid validity and in case such rejection of bid
is not an incident that attracts forfeiture of bid security as per extent
proviso.

iii. TA/CA bidder(s) who are not in contention / reckoning for award of
contract after price bid opening.

b. During bid evaluation, the proposal should also be submitted for release
of bid bond/ bid security/EMDs of bidders covered under above
situations.
(MM/112/2023 dated 30.11.2023
(MM/113/2023 dated 08.12.2023)
c. In above situations, the Competent Purchase Authority will have powers
to approve release of earnest money / Bid Bond / bid security,
irrespective of the type of tender or value of tender. However,
concerned Level-1 Executive will have full powers in this regard.

d. In respect of (i) to (iii) above, the onus and responsibility shall be of


dealing officer/official to ensure release of EMD/bid bond/bid security to
bidders within 5 days from the date of approval of CA/date of receipt of
request, whichever is later.

16.5.5.1 Format for undertaking to be submitted by the bidder alongwith request


for release of EMD/bid bond/bid security under para (i) to (iii) above:

“I…………….(name and designation of authorized signatory) on behalf


of M/s ……………….. (the name of bidder) hereby request to release
the bid security submitted with the offer against tender No. ………..
(tender no. to be indicated by bidder). It is undertaken that any aspect
of the tender evaluation process will not be challenged before any forum
/ authority and the recourse allowed under the bidding conditions for
representing / raising dispute will be deemed to have been foregone by
M/s ……………… (the name of bidder).”

176
16.6 Security Deposit/Performance Security

16.6.1 Security deposit shall be furnished as per terms in the contract. The date
of submission of SD/PS towards contract security shall be clearly specified
in the NOA and the contractor should be asked to submit the contract
Security within the specified date and that in case the contractor fails to
submit the SD/PS within the stipulated date, ONGC can take action as per
conditions specified in the tender.

16.6.2 The monetary limit for security deposit will be as under:

(MM/50/2019 dated 04.07.2019)


(MM/87/2023 dated 05.04.2023)

(i) Contracts for Turnkey 10% of Contract Value.


Project Construction /
platforms.

(ii) All type of service / Rig 10% of one year's contract value. (for rig
hiring contracts. hiring contracts one year’s contract value
shall be the Effective Day Rate based on
which bids were evaluated x 365 days). In
case of contracts with primary term of two
or three years, the Performance Bank
Guarantee / Contract Security will be
obtained with initial validity for two or three
years as the case may be.

Wherever contract period is less than one


year, Security Deposit for 10% of the
contract value shall be obtained.

(iii) Supply of goods 10% of order/contract value.

(iv) Rate Contract (Goods) 10% of estimated annualized contract


value

(MM/60/2020 dated 13.11.2020)

16.6.3 For purchases upto Rs. 1 lakh (other than GeM), no security deposit shall
be taken. Also, for Procurement of Material / Hiring of Services from
OEM/OES, Procurement through GeM (upto the value as mentioned in
General Terms & Conditions available on GeM portal) and procurement of
items on PAC basis security deposit shall not be taken.

177
(MM/109/2023 dated 30.10.2023)
16.6.4 The Level-1 officer will have full powers to relax / waive condition relating to
EMD/ Security Deposit, based on merit of each case and non-incorporation
in the tender document prior to inviting tender

(MM/04/2015 dated 28.04.2015)


(MM/105/2023 dated 26.09.2023)
16.6.4.1. Deleted

16.6.5 Security Deposit should be released in accordance with the terms of the
GCC / SCC

a. All concerned authorities shall ensure that details of all claims which are
to be recovered from the supplier / contractor are promptly intimated to
the respective payment authority, without any loss of time, so that the
claim can be recovered before releasing the pending payment(s).

b. Details of such claims should also be forwarded to the authority who has
concluded the respective purchase order / contract / rate contract and
has obtained the Security Deposit. After completion of the supplies /
execution of the contract, the respective authorities as mentioned below
should take prompt actions in respect of the following:

(i) In case of purchase of goods, for recovery of any claims other than
discrepancies / recoveries indicated in the GRV, the respective consignee(s)
[including port consignee / C&F section etc.] should forward the details of
claims which are to be recovered from the supplier, to the respective
purchase officer, immediately after completion of supplies against the
purchase order, i.e. within 15 days after receipt of last lot of material. Even
if there is no claim against a particular purchase order, the consignee(s)
should forward a ‘No Demand Certificate’ to the respective purchase officer
within the stipulated time as above. Further, in procurement of spares from
foreign OEMs and also in cases where payments are made through L/C or
Advance, concerned Stores formations should be more vigilant to take
immediate actions for notifying such discrepancies/short supplies to the
respective purchase formations, enabling them to take up the matter with
the suppliers for making good the same without any loss of time.

In case of import, no demand certificate should also be obtained from T&S


Office.

(ii)Wherever installation and commissioning is also involved along with


supply of the equipments, Indentor should ensure installation and
commissioning within the stipulated time for the same (by keeping the site
ready well before arrival of the equipment, by drawing the equipment
immediately after arrival at stores and by coordinating with supplier for
timely completion) and forward a copy of satisfactory installation and
commissioning report along with details of outstanding claims (if any) or a
‘No Demand Certificate’, to the authority who has concluded the respective

178
purchase order / contract, within 15 days after completion of installation and
commissioning of the equipment satisfactorily.

(iii) In case of centrally finalized rate contracts, for which the Contract
Security is obtained centrally for the entire contract, In- charge MM of each
work center should forward details of Purchase Orders placed against each
of such rate contracts to the authority which has concluded the rate contract.
Further, in respect of each such order which has been placed against the
rate contract, In- charge MM of the work center shall send the details of
outstanding claims (if any) or a ‘No Demand Certificate’, to the authority who
has concluded the rate contract within 15 days after receipt of the last lot of
material.

(iv) In case of Service Contracts, Indentor should forward details of


outstanding claims (if any, which could not be recovered from the regular
payments) or a ‘No Demand Certificate’, to the authority who has concluded
the respective contract, within 15 days after expiry of the contract period.

(v) In case of LSTK contracts, in which Contract Security is obtained to


cover the warranty period also, Indentor should forward details of
outstanding claims (if any) or a ‘No Demand Certificate’, to the authority who
has concluded the respective contract, within 15 days after expiry of the
warranty period.

c. In all cases, wherever the claims are to be recovered from the Security
Deposit, it should be ensured that the claims with complete details are
forwarded to the concerned authority(ies) well before the expiry of the
validity of Performance Bond.

Under exceptional circumstances, in case where above details cannot


be furnished within the stipulated time, approval of concerned Level-1
executive should be obtained by the respective authority (ies) (i.e.
Consignee/In-charge MM / Indentor, as the case may be) giving full
reasons necessitating additional time for furnishing ‘No Demand
Certificate’. Such approval should be forwarded to the concerned
purchase officer / contract concluding authority for obtaining suitable
extension for the validity of Performance Bond.

d. On receipt of intimation regarding claims for recovery (if any) / ‘No


Demand Certificate’, the concerned purchase officer / contract
concluding authority shall verify whether the claims have already been
recovered from the payments. After release of final payments, if any
claims are outstanding for recovery, necessary action should be initiated
to recover the same from the Security Deposit.

Thereafter, for the release of Contract Security (after recovering the


claims if any as mentioned above), the approval shall be obtained as per
provisions mentioned for release of PS in the contract.
(MM/112/2023 dated 30.11.2023

179
The Competent Purchase Authority (who has approved award of
contract) will have powers to approve release of PS. However,
concerned Level-1 Executive will have full powers in this regard.
Accordingly, necessary advice shall be issued to the concerned Finance
section for releasing the Security Deposit / PS.

e. Virtual Corporate Boards across the organization should monitor the


issue of release of EMD’s and Security Deposit’s regularly during the
review meetings.

(MM/26/2017 dated 21.06.2017) (MM/50/2019 dated 04.07.2019)


(MM/112/2023 dated 30.11.2023
f. Invoking of Bank Guarantee / reversal of invocation of PBG or
refunding the amount of forfeited PBG:

Prior approval of Level-1 executive will be obtained for invoking /


forfeiting the PBG) including MCoDP level cases. The head of associate
finance will be informed to invoke the bank guarantee. For Reversal of
invocation of PBG or refund of the forfeited PBG/SD approval of the L-1
Executive shall be required.

(MM/78/2022 dated 10.10.2022)


The GST as applicable on forfeiture of Security Deposit/Performance Bank
Guarantee (PBG) shall be borne by ONGC.

The original bank guarantee will be forwarded to concerned Finance


section and only photocopies will be kept for reference with Materials
Management.

The invocation/forfeiture of Performance Security/Security Deposit into


be issued before 10 days of expiry of Bank Guarantee (BG). A proforma
notice of invocation of BG is at Appendix-13.

FILING OF CAVEATS

The caveat(s) should be filed immediately when the decision has been
taken by the competent authority to invoke the BG in the courts of
CONCURRENT JURISDICTION in case there is concurrent jurisdiction
in terms of Sec. 20 of C.P.C. ONGC must also ensure that the notice to
the Bank for encashment of BG be delivered by authorized
representative of ONGC to . the Bank who had issued the relevant Bank
Guarantee.

It is imperative to take pre-emptive steps by lodging of “CAVEAT” under


Section 148 A of Civil Procedure Code in the court(s) of concurrent
jurisdiction where it is apprehended that contractor is likely to move an
application for staying invocation of Bank Guarantee.

180
The filing of caveats will be done by Legal Department of ONGC. All
information related to filing of caveats will be provided by concerned
dealing officer.

(MM/109/2023 dated 30.10.2023)


g. Acceptance of SD/PS received after contractually allowed period

In cases where cancellation/termination of PO/contract on account of


delayed submission of the SD/PS is not in the interest of organization,
concerned L-1 executive shall have full powers to accept SD/PS
received after the contractually allowed period, irrespective of extent of
delay.

16.6.6 Verification and acceptance of bank guarantee towards Security deposit

(MM/110/2023 dated 01.11.2023)


16.6.6.1 Since e-BG will be recived directly from Banks through NeSL platform,
confirmation/verification of e-BG from Banks will not be required

16.6.6.2 All received bank guarantees will be checked as under:

(MM/123/2024 dated 16.04.2024)


a. e-BG: Bidders/Contractors will be required to provide the details of e-
BG such as e-BG Number, Date, Name of issuing bank, Expiry, Claim
period and amount. Dealing officers shall verify the details of e-BG through
T- code code-ZMMEBGDTL, which shall also be used for downloading e-
BG.

SFMS BG: In case of SFMS BG (or its amendment), the confirmation of


BG shall be transmitted by BG issuing bank through SFMS system to
ONGC’s bank. SFMS delivery report/message copy shall also submitted
by the bidder alongwith original BG. The Authenticity of all SFMS bank
guarantees and details shall be verified by the dealing officer from SFMS
system message received by ONGC’s bank, which shall be obtained
through concerned Cash & Bank section from ONGC’s Bank.

b. The bank guarantee (e-BG as well as SFMS BG) will be compared


verbatim by concerned dealing officer with standard format of the bank
guarantee. If the e-BG/SFMS BG is verbatim with standard format, there
will be no need for legal vetting. In case of difference in language, opinion
of legal department will be obtained to see if such an e-BG/SFMS BG is
legally enforceable without any problem.

c. SFMS BG: Whether the name and designation of the officer executing
the bank guarantee and his power of attorney/signing power number with
date is shown and BG is duly signed/initialed by the executants with full
particulars under the seal of the bank

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d. e-BG: Whether the e-bank guarantee is on Stamp duty Certificate (e-
Stamping) of appropriate value as prescribed under the stamp act. The date
and time of e-Stamping should be a date and time earlier than the date of
execution of the bank guarantee. Further, bank guarantee from foreign parties
need to be adjudicated in India in consultation with legal department at the cost
of ONGC as per item requirement of Stamp Act.

SFMS BG: Whether the SFMS bank guarantee is on non-judicial stamp paper/
with franking receipt e-stamping as per stamp duty applicable at the place from
where the bid has emanated of appropriate value as prescribed under the
stamp act. The date and time of sale of the non-judicial stamp paper/franking
receipt e-stamping shown therein should be a date and time earlier than the
date and time of execution of the bank guarantee. Further, bank guarantee
from foreign parties need to be adjudicated in India in consultation with legal
department at the cost of ONGC as per item requirement of Stamp Act.

e. Whether the factual details such as contract number, value of the BG,
amount of advance/value of contract (wherever applicable), validity of the
guarantee etc. have been correctly indicated and in case of SFMS BG over-
writings/cuttings, if any, have been properly authenticated under signature and
seal of the executants, wherever applicable.

f. e-BG: In case there are errors in the e-bank guarantee, the same should be
notified to the contractor and an amendment to the e-bank guarantee should
be obtained. Such amendment should also be received from bank through
NeSL platform.

g. SFMS BG: In case there are errors in the SFMS BG, the same should be
notified to the contractor and an amendment to the SFMS BG should be
obtained. Bank shall issue the amendment to Bank Guarantee through SFMS
system and send SFMS message to ONGC's Bank. Such amendment should
be on non-judicial stamp paper/with e-franking of the equivalent amount as
that of the bank guarantee itself. Such amendment (in original) should also be
received from bank either through post or through bidder /contractor under
sealed cover alongwith SFMS delivery report/message copy.

(MM/53/2020 dated 17.01.2020)


16.6.7. The submission of Security deposit/Performance Security via
NEFT/RTGS/Electronic fund transfer to ONGC’s designated account as
mentioned in tender document shall also be acceptable.

16.7 Secured Advances ( For Works)

(Only for Item Rate / Percentage Rate Contracts)


16.7.1 Secured Advances on the security of materials brought to site may be made
to the contractors for items which are to be used on work.

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16.7.2 The Engineer-in-charge can release the secured advance up to an amount
not exceeding 75% of the value of the materials as assessed by the site-in-
charge or an amount not exceeding 75% of the material element cost in the
tendered rate of the finished item of work whichever is lower.

16.7.3 A formal undertaking should be submitted by the contractor under which


ONGC secures a lien on the materials and is safeguarded against losses due
to the contractor postponing the execution of the work or to the shortage or
misuse of the materials, and against the expense entailed for their proper
watch and safe custody. Payment of such advances should be made only on
the certificate of the site-in- charge that:

(i) The quantities of materials upto which the advances are made have
actually been brought to site.

(ii) Full quantities of the materials, for which advance is to be made, are
required by the contractor for use on items of work for which rates for
finished work have been agreed upon.

(iii) The quality of materials is as per desired specifications.

16.7.4 Recoveries of advances so made should not be postponed until the whole
of the work entrusted to the contractor is completed. They should be made
from his bills for work done as the materials are used, the necessary
deductions being made whenever the item of work in which they are used are
billed for.

16.7.5 Secured advance shall be granted only for non-perishable items. It can
however, be granted for perishable items after the contractor indemnifies
ONGC through an insurance cover (Insurance period shall be based on likely
time gap in arrival and usage of material but minimum of three months). The
Engineer-in-charge shall identify whether an item is perishable or not.

In line with the above, suitable provision may be incorporated in tender


documents to facilitate milestone payments as above.

16.8 Fall Clause

(Applicable in case of Rate Contracts for indigenous purchases & its non-
acceptance will be a rejection criteria)
16.8.1 The price charged for the items shall be in line with the standard price
lists for the contractor / supplier. In case standard price lists are not
available, the contractor / supplier will match the prices for any Department
of the Central Govt. or any Dept. of a State Govt. or any Statutory
Undertaking of the Central or State Govt., as the case may be

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16.8.2 If any time, during the contract execution period, the contractor / supplier
or his agent / principal / dealer, as the case may be, reduces the sale price,
sells or offers to sell such materials to any persons / organisations
including the purchaser or any Dept. of Central Govt. or any Dept. of a
State Govt. or any Statutory Undertaking of the Central or State Govt. as
the case may be, at a price lower than the price chargeable under the
contract / supply order, he shall forthwith notify such reduction or sale or
offer of sale to the Purchase Authority who has issued this Purchase Order
and the price payable under the Purchase Order / Contract for the
materials supplied after the date of coming into force of such reduction or
sale or offer of sale shall stand correspondingly reduced. The above
stipulation will however not apply to :

a. Exports by the Contractor / Supplier or

b. Sale of goods as original equipment at prices lower than the prices


charged for nominal replacement.

c. Sale of goods such as drugs which have expiry dates.

The Contractor / Supplier shall furnish a certificate guaranteeing that the price
at which item / service was provided to ONGC was the best price &not higher
than the price charged to other customer under similar terms and conditions.

16.9 Posting of summary of details of supply orders/contracts on website

16.9.1 Details of all contracts/purchase orders, as per Appendix 6 & 7, valued


at more than Rs. 10 lakhs, awarded during a month, shall be posted on
the website http://tenders.ongc.co.in by 5th of subsequent month by all
work centers.

16.9.2 The information as per Appendix 6 is to be posted on the website,


separately for the following categories:

(a) Purchase of Capital items


(b) Purchase of Stores items
(c) Purchase of Spares
(d) Charter Hire/Rate contracts
(e) Turnkey contracts
(f) Other contracts (including civil and electrical works etc.)

16.9.3 The following details shall also be furnished in the format at Appendix 7(a
& b) for all contracts/purchase orders, valued at more than Rs. 10 lakhs,
completed during the month:

(a) Actual date of start of work (applicable for contracts only. For
charter hire contracts, it is the date of mobilization /
commencement of work)
(b) Actual date of completion (for supplies as well as works)
(c) Reasons for delay, if any (applicable for all cases).

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16.9.4 Respective In charges-MM of all work centers shall coordinate and
ensure that all the fields required for the report in the ICE System will be
filled up by the departments concerned, in respect of all tenders.

16.9.5 With the data thus updated, Chief MM will execute a centralized report for
the entire organization before 5th of every month which will be downloaded
in HTML format and thereafter forwarded to Corporate Communication for
publishing on the website http://tenders.ongc.co.in.

16.9.6 Further, while placing PO/Contract in the system, correct tender process
should be selected from the available options so that all cases including
single tender-nomination cases, posted on tender website, are appropriately
highlighted in the report.

16.10 Reporting of nomination cases

(MM/25/2017 dated 08.06.2017)


(MM/112/2023 dated 30.11.2023)
16.10.1 All Works including Purchases, Services and Sales awarded on nomination
basis above Rs. one crore should be reported to the Board for information.
The cases shall include those approved by the Level-l Executive under the
Key Executives or respective Key Executive or CoDP or MCoDP. Details on
all such cases are to be furnished to CPO through SAP T-code
ZICE_NOM_DATA for compilation and submission of agenda to the MCoDP
for appraisal. After apprising MCoDP, then the cases shall be reported to the
ONGC Board by CPO for information on Quarterly basis. The information on
the cases pertaining to each Quarter should be furnished latest by 7th day
after completion of the Quarter, for timely submission to the Board.

All Works including Purchases, services and Sales awarded on nomination


basis above Rs. 10 lakhs and up to Rs. 1 crore shall be reported to the
MCoDP for information.

The quarter-wise details of these cases furnished by work centers through


SAP T-code ZICE_NOM_DATA shall be consolidated by CPO and put up for
consideration of MCoDP.

16.10.2 All Works including Purchases, Services and Sales awarded on nomination
basis up to Rs.10 lakhs shall be reported to the concerned Director. The
respective Key Executive shall ensure to report any such nomination cases
to the concerned Director on Quarterly basis. The Quarter-wise details of
these cases reported to concerned Director shall also be furnished to CPO
for record.

16.10.3 The concerned Key Executive should also send a copy of the report to
Director (Finance), Internal Audit Heads and CVO. Even for the quarters
during which no nomination case has been carried out, all Key Executives
should invariably send a ‘NIL’ report to Director (Finance) and CVO.

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Further for cases above Rs 1 crore, a copy of the Board Agenda prepared by
CPO should be sent to CVO.

16.10.4 The following additional information should also be furnished while


reporting the nomination cases:

(i) Whether the requirement is of regular/continuous type or is for a specific


purpose.

(ii) If the requirement is of regular/continuous type, then the status of


processing of the fresh tender for regular requirement.

(iii) Whether reasonability of the price was ascertained for the respective
contract awarded on nomination basis.

(iv) Further, photocopy of the relevant note sheets containing detailed


justification and the administrative approval of the competent authority
for award of contract on nomination basis should also be invariably
appended while reporting the cases awarded on nomination basis.

(MM/51/2019 dated 17.10.2019)


(v) Delay analysis w.r.t. processing of the regular tender(s), wherever the
nomination case was awarded due to delay in finalization of the regular
tender.

16.10.5 The format available at Appendix 8 shall be utilised for reporting purpose.

(MM/04/2015 dated 28.04.2015)

16.10.6 Purchase of spares / repairs through OEM / OES and Purchase on PAC
basis will not be treated as purchase on nomination basis for reporting
purpose.

16.11 Change in Name/Address of the firms in ICE System

16.11.1 Requests for change in Name/Address of any firm should be forwarded


to Centralized Vendor Cell at Dehradun along with a certificate to the effect
that the change in name and address has been proposed on the request
of the concerned firm and all the related documents provided by the firm
have been carefully examined and found in order. As regards the request
for change in name of the firm is concerned, the same should be got vetted
from the Legal Depts. of the Work Centre

16.11.2 In case the request is forwarded by MM Sections aforesaid certificate


should be issued by concerned I/c-MM. For cases pertaining to other
sections, the said certificate should be issued by the concerned L-3 level
officer.

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16.12 Training/visits of ONGC executives against purchase of
equipments/services

16.12.1 The provisions for training in the premises of the manufacturer should
normally not be incorporated in the tender/contracts. The training, if any
should be provided by the Contractor/manufacturer at ONGC's Work
Centre during installation and commissioning or as a part of the technical
support

(MM/29/2017 dated 21.11.2017)


(MM/109/2023 dated 30.10.2023)
16.12.2 Only in cases where new equipment are being procured for the first time
in ONGC and ONGC officials are not conversant with the operation/
maintenance of such new equipment, training to ONGC officials may be
incorporated in the tender while purchasing such equipment, with the
approval of the concerned L-1.

16.12.3 In all cases where BEC so approved stipulates provisions for training of
executives, the bidders will be asked to indicate separately the cost of
training to executives at abroad/in India and same shall be considered for
evaluation purpose.

16.12.4 The proposal, with full justification, during finalisation of the tender, will be
submitted by concerned key executive for approval of the Chairman for
training to our executives abroad with following details:-

(i) Value of the new equipment/services, number of officers to be deputed


and cost of training of officer(s).

(ii) Number of years the officer(s) have been in the previous assignment
and their likely deployment in the next assignment.

(iii) Qualifications, age, date of joining ONGC and any medical disability

(MM/29/2017 dated 21.11.2017)


16.12.5 Necessary provisions relating to training of executives as per 16.12.3
above will accordingly be made in the tender/contract conditions.

16.12.5.1 Issuance of Form-C

In order to avoid unnecessary hardship to the vendors, all concerned


should ensure that Central Sales Tax C-Forms are issued expeditiously to
the suppliers as per the terms of PO/contract.

16.13 Customs/Excise Duty related issues

16.13.1 Deemed Export

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(MM/15/2016 dated 05.07.2016)
16.13.1.1 The purchase of specified goods from domestic supplier/manufacturer
for petroleum operations in PEL/ML in nominated blocks or NELP/other
eligible blocks under the procedure of ICB is covered under deemed export
at para 7.02(f) read with para 7.03 under Foreign Trade Policy (FTP 2015-
20) in vogue. Accordingly, the supplier is eligible for exemptions from
payment of excise duty under Sl. No. 336 of Central Excise NN 12/2012-
CE dated 17th March 2012 (as amended) and other deemed export
benefits available, subject to condition that ONGC should provide
Recommendatory letter to DGH for issuing certificate that goods are
essential for petroleum operation.

16.13.1.2 The supplier/manufacturer is also eligible for import of raw material for
manufacturing of such specified goods subject to condition that ONGC
issues Project Authority Certificate (PAC) which should indicate value of
such material as per contract and its import component as declared by
supplier/manufacturer in PAC (Appendix-27 of FTP).

16.13.1.3 PAC can also be issued to contractor with the name of subcontractor (s) ,.
In such case the name of sub contractor (s) (manufacturer) and the item
to be supplied by him along with import content should also be mentioned
in the contract

16.13.1.4 In order to avoid misuse of items imported by domestic manufacturers


against our Project Authority Certificate, all concerned will ensure that
details of items to be imported by successful domestic bidder for
manufacturing equipment for supply to ONGC are invariably incorporated
in supply order/contracts).It will further be ensured that the value of such
imported items does not exceed the foreign exchange component
indicated by the domestic bidder in his bid.

16.13.1.5 Further, In the interest of avoiding hardship to the concerned party, 'Project
Authority Certificate' will be sent along with detailed supply order

16.13.2 Availing 'CENVAT credit' by plants, assets and services

16.13.2.1 TC must deliberate on admissibility of 'CENVAT Credit' in every case and


wherever admissible, 'CENVAT Credit' should be availed by ONGC.

16.13.2.2 ONGC is engaged in producing both exempted and dutiable goods. Crude
Oil and Natural Gas produced by ONGC are exempted from payment of
Excise Duty. Whereas, Excise Duty is leviable on some of the other Value
Added Products (VAPs) produced (from the condensate) at various plants (
viz. Uran/Hazira/Ankleshwar etc.) On these dutiable goods, ONGC can avail
'CENVAT credit' in terms of following provisions of CENVAT Credit Rules:

188
i. As per Rule-6(3A), manufacturer engaged in production of both
exempted and dutiable goods and opting not to maintain separate
books of accounts, credit of tax on inputs shall be availed
proportionately based on turnover of dutiable goods to total turnover
of goods (exempted plus dutiable). Accordingly, the plants (viz.
Uran/Hazira/Ankleshwar etc.) which produce both exempted
and dutiable products can avail CENVAT credit of duty/ tax paid on
input and/or input service received in the plant in proportion to
turnover of dutiable goods to total turnover of goods(exempted plus
dutiable). As regards Western Offshore, the Assets and Services can
avail' CENVAT credit' and distribute the same to the plants (viz.
Uran/Hazira), for utilization against payment of Excise Duty.

ii. According to Rule-9, the manufacturer can avail 'CENVAT credit'


of Service Tax on the basis of
invoice issued by Service Provider (Contractor) under Rule-4A of
Service Tax Rules-1994.

(MM/10/2016 dated 23.03.2016)


16.13.2.3 – Deleted -

16.13.3 Availing of zero customs duty benefit

16.13.3.1 The instructions listed hereunder should be meticulously followed to


avail Zero Customs duty benefit:

(i) The Sections responsible for issue / renewal of PELs / MLs should
intimate all concerned indentors as and when the PELs / MLs are issued
/ renewed.

(ii) The indentors should furnish relevant information regarding availing of


Zero Customs duty in case of eligible PEL/ML areas while forwarding
the indents to concerned MM Sections.

(iii) The MM Sections must clearly indicate eligibility for availing Nil
Customs duty in all relevant tenders and Supply orders so that the
aforesaid benefits are availed by the T&S office.

16.13.4 Monitoring of goods imported against zero customs duty

(MM/04/2015 dated 28.04.2015)


(MM/15/2016 dated 05.07.2016)

189
16.13.4.1As per Sl No. 357A of Custom Notification No. 12/2012-Cus dated
17.03.2012 (as amended by N/N 12/2016-Cus dated 01.03.2016),
import of specified goods (List 34) required for petroleum operation in
PEL/ML in nominated blocks or NELP/other eligible blocks are
exempted from customs duty. Each work center shall ensure that
materials procured against Essentiality Certificate are not used for the
purpose other than petroleum operations under nominated or NELP/
other eligible blocks.

16.13.4.2 As per Sl. No. 357 of Custom NN 12/2012-Cus (as amended) the import
of parts and raw materials for manufacture of Goods under Customs
Bond (section 65 of Customs Act) to be supplied in connection with the
purposes of offshore oil exploration or exploitation is exempted from
payment of customs duty, subject to submission of essentiality
certificate from DGH.

16.13.4.3 – Deleted -

16.13.4.4 All imports and import clearance under the contract shall be done by the
bidder and ONGC will not provide any assistance in this regard.

(MM/15/2016 dated 05.07.2016)

16.13.4.5 Notwithstanding what is stated above, the bidders should also consider
the position in regard to import of goods as specified in list No. 34 of
above notification against zero Customs Duty. ONGC is not liable in
whatsoever manner, for the rejection of their claims for zero Customs
Duty by any of the authorities including the DGH.

16.13.4.6 The recommendatory letter will be given only for those items which are
either consumed during the execution of work or for those
equipment/tools which are undertaken to be re-exported by the bidder.
The recommendatory letter will not be issued when the bidder imports
the equipment/tools on acquisition basis and does not undertake to re-
export the same after the completion of the contract

16.13.4.7 Central Excise Act: The Exemption/refund of central Excise duty is


available under para 8.3 (c) read with para 8.2(c) on the strength of
EPCG License provided by ONGC. However specific confirmation from
ONGC is required in each case.

16.13.4.8 As per clarification, Govt has allowed the transfer of imported goods
from one eligible project to another project, subject to certain
safeguards to prevent any misuse of this facility. In this regard,
notification No. 28/2013-Customs, dated 16th May, 2013 provides as
under for the transfer of equipment/goods for petroleum operation from
one eligible PEL/ML to another:

190
(i) A certificate from Directorate General of Hydro Carbons in the Ministry
of Petroleum and Natural Gas, Government of India, to the effect that the
said goods may be transferred in the name of another sub-contractor of
the licensee or another licensee or a sub-contractor of such licensee
(hereinafter referred to as the ‘transferee’) and that the said goods are
required for petroleum operations to be undertaken under eligible
petroleum exploration or mining leases;

(ii) Undertaking from the transferee to comply with all the conditions of the
notification, including that he shall pay duty, fine or penalty that may
become payable, if any of the conditions of the notification are not complied
with by himself, where he is the licensee or by the licensee of the
transferee, where such transferee is a sub-contractor;

(iii) a certificate, in the case of eligible PEL/ML, that no foreign exchange


remittance is made for the transfer of such goods undertaken by the
transferee on behalf of the licensee or lessee, as the case may be:
Provided that nothing contained in this sub-clause shall apply if such
transferee is an Indian Company or Companies.

(MM/15/2016 dated 05.07.2016)

In view of above clarification, Govt has allowed transfer of imported good


from one eligible blocks to another without payment of custom duty under
para (d) of Conditions No. 40A of Sl. No 357A of Notification 12/2012-Cus
(as amended vide N/N 12/2016-Customs dated 01.03.2016) for petroleum
operation. In this case, the contractor needs to provide documents as
specified under para (d) of Condition 40A to the jurisdictional Customs
before such transfer where there is change in Licensee or Contractor.
Further, Contractor should get the undertaking given by ONGC at the time
of initial import duly released from customs and submit to ONGC as a proof
of compliance.

Non compliance of these provisions will be treated as breach of contract.


Further, ONGC shall intimate Custom, DGH regarding completion of the
subject contract and non export of the equipments and also forfeit their
performance bond..

16.13.4.9 Central Sale Tax (CST) Act : Under section 8 of CST Act, concessional
rate of sale tax on interstate sale of goods required for use in mining or
for use in manufacturing is available subject to ÖNGC provide ‘Form C’
to the contractor. Bidder to provide value of material to be procured on
interstate sale basis in Bid , However, detail list of such material (limited
to the value of interstate purchase provided in the bid) can be provided
subsequently which shall form part of contract..

In case Indian supplier is not a manufacturer and purchasing goods from a


registered dealer located outside the state of use, ONGC can avail the
benefit of E1-E2 transaction by issuing Form C to the contractor.

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16.13.4.10 Compliance of Section 6A of CST Act 1956.

In accordance with the provisions under Section 6A of CST Act, 1956, in case
of interstate transfer to goods, if the transferor claims that he is not liable to
pay CST on an interstate movement of goods due to the reason that it is not
sale and the goods have been transferred inter-state to any other place of his
business, then he has to produce Form F to his assessing authority duly signed
by an officer of his other place of business failing which movement of such
goods shall be deemed for all purposes as sale leviable to CST.

Hence, following guidelines in case of interstate movement of goods from one


installation of ONGC to other or for job work or repair at third party's premises
/ workshop, should be followed:

(i) The blank form-F shall be obtained by the transferee (i.e. goods
receiving party) from sales tax authority in which the transferee is
situated.
(ii) Complete details of the material that have been received by the
transferee of goods shall be indicated in the appropriate column of the
Form-F. If space in F form is not adequate, a separate list may be firmly
attached as annexure to form F giving details.
(iii) The transferee of goods may issue a single consolidated declaration for
the transfer of goods made by the concerned transferor work center
during one calendar month.
(iv) The declaration may also be given by way of annexure where there are
many transfers made during the month.
(v) The declaration in the aforesaid Form-F shall be got certified by the
transferee from their jurisdictional sales tax authority and shall be
forwarded to the transferor work centre after receipt of goods.
(vi) The declaration in Form-F must be submitted to the jurisdictional sales
tax department of the transferor work centre within three months after
the end of the period to which the declaration pertains to.
(vii) In cases where interstate transfer of goods are for purely job work
where material are not used, and the service provider is not in position
to issue "Form-F", the transferor work center should substantiate to the
sales tax authorities by providing them transport documents (outward
and inward delivery challans) that the movement of goods were not by
way of sale.

16.14 Submission of integrity pact and other documents by bidders

(MM/109/2023 dated 30.10.2023)


16.14.1.1 IP will be applicable for all tenders valuing above Rs 1 crore only. In a
case of procurement of goods from OEM decided that, in respect of
cases pertaining to procurement of material/hiring of goods and
services from OEM/OES/PAC basis, in case bidder does not agree to
submit the Integrity Pact inspite of making all out efforts, then
dispensation from the requirement of submission of Integrity Pact in
such cases can be considered with the approval of the concerned L-1.

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16.14.1.2 IP will be executed on plain paper, irrespective of whether it is from
foreign or Indian bidders.

16.14.1.3 Submission of incomplete IP documents with the tender should not lead
to disqualification of the bidder. Such vendors should be asked to
comply to all IP guidelines subsequently.
(MM/116/2023 dated 27.12.2023)
16.14.1.4 In cases of submission of IP without being properly signed by the authorized
signatory or non-submission of IP in either manual tender or in e-procurement
(where scanned copy is to be uploaded along with Techno-commercial bid)
bidder(s) may be asked to submit original copy of IP in physical form (in
manual tender) or scanned copy of original IP (in e-procurement) as deficient
documents as per provisions of the MM Manual regarding seeking
clarifications/submission of deficient documents by bidder(s). However, in
case bidder(s) do not submit these documents, then such bids should be
rejected.

16.14.1.5 Offers violating any of the provisions of the Integrity Pact should be
rejected, without considering them for any relaxation/dispensation from
the provisions of Integrity Pact. In exceptional circumstances, if it is
considered essential to grant any relaxation/dispensation to the
provisions of IP to any bidder, the issue should be referred to lEMs for
their expert opinion on whether such relaxation/deviation can be
accepted or not.

Note:
(a) Curriculum Vitae of Independent External Monitors (IEMs) shall be
placed permanently on the home page of ONGC’s website
www.tenders.ongc.co.in
(b) The proforma of Integrity Pact shall be incorporated in the tender
documents. The Integrity Pact shall be initially signed by an officer at the
appropriate level (same as the level at which the contract for execution of
supply order/work is to be signed, based on the estimated value of the
tender). The same shall have to be returned by the bidder (along with
technical bid), duly signed by the same signatory who signs the bid, i.e.
who is duly authorized to sign the bid as per the Instructions to Bidders
stipulated in the tender documents. All the pages of the Integrity Pact shall
be duly signed by the ONGC’s and Bidder’s signatories.
(c) The process for appointment of External Independent Monitor(s) shall
be similar to Outside Expert Committee (OEC) and the C&MD of ONGC
shall be the appointing authority.

(MM/03/2015 dated 15.04.2015)


(MM/11/2016 dated 05.04.2016)
(MM/112/2023 dated 30.11.2023)
(MM/125/2023 dated 23.04.2025)

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16.14.1.6 Work Centers should not themselves ignore the advice of IEMs that are
recorded and submitted by the IEMs to the work centre on various
issues. In the event any of the advice of IEMs cannot be accepted, the
case should be put up to MCoDP for its approval by the Work Center
with full justification for the same.

In the interest of transparency, opinion of IEMs should be shared with


the complainant. After receipt of the opinion of IEMs, HEAD MIND shall
share the operative part of the IEMs opinion alongwith the conclusion
part with the complainant. It may also be informed to the complainant
that opinion of IEMs is non-binding in nature.

16.14.1.7 Bidders who have not submitted the POA should not be out rightly
rejected. In such scenario, bidders may be asked to submit original POA
as deficient document as a clarification as per laid down MM procedure.
Further, non submission of POA after the final round of clarifications
should lead to rejection of the bid. However, it should be ensured that
the POA is given in the name of same person who signed the bid.

16.14.1.8 Purchase through full-fledged purchase formations

The officers of MM discipline who are attached to indenting section(s) to


look after their stock functions should not carry out the purchase
themselves.

16.14.1.9 Record and distribution of the communications /files received in MM


Department through Dak system.

Utmost care should be taken to properly record and account for the
communications received from various sources during tender processing.
Further, in all e-procurement cases, clarification to be sought from the
bidders or any other correspondence with bidders related to e-tenders should
be uploaded on e-procurement portal and it should be insisted that bidders
should submit their responses through e-procurement portal only avoiding
submission of physical documents, unless the response necessitates
submission of documents in physical form.

(MM/04/2015 dated 28.04.2015)

16.15 Accounting of Capital items.

16.15.1 Normally the officer to be declared as indenting officer for capital items
should be Sectional Heads not below E-4 level. In case officer of E-4 level
is not available, next junior officer will be declared as authorised indentor
for assets control.
16.15.2 The authorised indentor will ensure maintenance of proper records for
capital items received and distributed to actual users. In the event of transfer

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or retirement from service of ONGC of any officer/official, it must be recorded
in 'No Objection Certificate by the concerned authorised Indentor that such
officer has handed over the charge of the assets in his name and entry has
been made accordingly in the records. Before issuing Clearance of dues of
such officer(s) it shall be ensured that above requirement has been fulfilled
by the concerned authorised Indentor.

(MM/27/2017 dated 21.06.2017)


16.16 Deputation of ONGC personnel on foreign tour:

Where, after having approval of Competent Authority, ONGC’s personnel are


deputed on foreign tour, a provision is to be made in the supply order/contract
that no service/hospitality in any manner whatsoever is to be provided by
contactor / supplier and their associates directly or indirectly to ONGC
personnel(s) so deputed. The ONGC personnel(s) before, deputation on
foreign tour will be required to give an undertaking (as under) to the
concerned authority:

Undertaking of officer going abroad on official business/inspection

I, __________, Designation _______ CPF No.______ working as ______ at


______am eing deputed to inspect the material _______ Details of the
Company ________ before dispatch.

I do hereby give this undertaking to ONGC that I shall not avail any facility /
hospitality of the Company ______ during this tour. I shall be personally
liable for any violation of this policy on this account.

Name________
Designation__________
CPF__________

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17 Vendor Management

17.1 Registration

17.1.1 Suppliers / Contractors should be given the opportunity to register as an ONGC


vendor. They will be provided with a login id and password on an ONGC
document portal.

17.1.2 Each vendor can select from a list of items / services which it wants to supply
and also a list of locations where they are going to deliver those items/ provide
those service.

17.1.3 The document portal will include provisions to upload standard documents.
Standard financial documents (e.g. income statement, cash flow statement)
can be uploaded by the vendor once a year or whenever they are changed
(financial year / other time period of change) and are used as an input to any
tenders throughout the year.

17.1.4 In addition, the document portal will also include provisions to include technical
documents (PO's etc.) of a specific category / item /service. This will also be
updated by the vendor as and when required depending on the specific tender
they want to apply to and also depending on the validity of the document. For
the same item category, the documents can be taken from the document portal
rather than asking from the vendor on each occasion.

17.1.5 In addition, each document should have a provision for verification- if a specific
document (financial, commercial or technical) has been verified once by a TC
team and the respective Level-1 authority, the MM representative of the
specific TC can put an online verification for the document making it usable for
all other subsequent tenders for the same category / item / service under the
same category team in the future by other users (for as long as the document
is valid and can be used). These verified documents, whenever they are still
valid (based on timeline) should be used across ONGC for evaluating of
tenders.

17.1.6 If a particular document has been evaluated by any work center, same can be
downloaded from vendor’s submitted bids for other tenders at work center, he
has to indicate the same in the bid .In such cases the documents may not be
asked again from the vendor.

17.1.7 In case a document has not been deemed approved, provision should be
present in the system to remove the document from the portal and notify the
vendor accordingly.

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(MM/61/2020 dated 02.12.2020)
17.2 New vendor development through development order process
(Development Order Policy)

17.2.1. Responsibility of Development Order Process:

(MM/121/2024 dated 21.03.2024)


Development order process will be without linking to a regular tender. In order
to have better management, reporting and smooth development order
process, the development orders will be processed in centralized manner by
INDEG group. For this purpose, tenders for items/services under purview of
CPD, to be processed by CPD in association with INDEG with support of
appropriate NTA. Tender for items/services which do not fall under purview of
CPD to be processed by Delhi MM in association with INDEG with support of
Work Centre(s). For the cases within the power of L-I, concerned L-I of INDEG
shall be the CPA.

As Development order without linking to regular tender will require


independent budget, the Budget provision for Development Order shall be kept
centrally with INDEG. Expenditure will be ultimately booked to work centre
identified for field trial testing of items supplied against development order.
INDEG shall be responsible for complete process starting from preparation of
Purchase requisition to placement of Development Order including post
contract issues, if any etc. INDEG shall also be responsible for activities that
include co-ordination between vendor & concerned work centers for (i)
Inspection of material (ii) Arrangement of QCC reports to work centers (iii)
Ensuring earliest field trial by concerned work centers. Work center shall be
responsible for activities of receipt of material and field trial testing.

The Development Order Policy (DOP) shall be adopted for Capital Equipment,
general spares of equipment and stores items (including chemicals).
Development Order, for the time being, shall not be undertaken for works
contracts / LSTK contracts. The development order for services may be
processed as per Para 17.2.3 below.

17.2.1.1. The inspection function is required for:

- Inspection of facilities of vendor including workshop, type of machines, capacity,


load test of machines & capability of vendor.

- To decide composition of any propriety material, being developed by vendor.

- Stage inspection of a particular item, being developed first time in India.

As Development order involves lot of checks with regard to facilities of the vendor
and also other aspects, which are not normally required in case of a developed
source, the responsibility of inspection as per scope in case of development
orders will be of a competent TPI which should handhold ONGC QAD to enable
them to subsequently takeover the job independently. Services of TPI agencies

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already empanelled with ONGC will be used. The appointment/engagement and
payment of TPI Agencies will be done by ONGC in line with guidelines in vogue
for regular cases.

17.2.2. Development order for Goods:

The list of suitable items for development orders, shall be identified by INDEG
in consultation with Corporate Technical Services and work centres. The list and
any review/additions/deletions therein shall be carried out by INDEG along with
Corporate Technical Services. List of items for development order may be
reviewed periodically as per requirement.

The above list of items for seeking request for placement of development order
from probable domestic manufacturers will be published on the ONGC tender
site “www.tenders.ongc.co.in” and the link for the same shall also be provided
on the login page of e-tender website. Along with the list of items, INDEG will
also upload the process of development order and other necessary details
including technical specification for information of the vendors.

The interested vendor(s)(Indian manufacturers only) seeking development


order will send their request (categorically indicating the item(s) from such list
for which vendor is seeking development order) to Head INDEG at the e-mail id
as designated for this purpose on ONGC tenders website alongwith the
supporting document in respect of their existing manufacturing facility, capability
to manufacture the item for which they are seeking development order (e.g.
details of existing manufacturing facility including machinery/equipment, Udyog
Adhaar Certificate/Udyam Registration Certificate, GST Registration Certificate,
Manufacturing License, if any etc.).

Request of indigenous manufacturers for development order for any other item
may also be considered for examination and development order process.

Besides publishing list of items identified by ONGC for placement of


development orders, vendors may also suggest the items in use by ONGC
which they can develop and supply.

(MM/121/2024 dated 21.03.2024)


17.2.3 Development order for Oil Field Services:
Wherever it is feasible to award a development order for smaller
quantities/period and low risk is involved in execution of development order,
processing of development order for oil field services shall be allowed. In line
with development of vendors for procurement of goods, development of
vendors for services (especially those services which are required by multiple
work centers and services which are required in the high tech areas) shall also
be done in centralized manner by INDEG. For this purpose, tenders for
items/services under purview of CPD, to be processed by CPD in association
with INDEG with support of appropriate NTA. Tender for items/services which

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do not fall under purview of CPD to be processed by Delhi MM in association
with INDEG with support of Work Centre(s).

The request of indigenous service provider for development order for Oil field
services may be considered for examination and development order process.

The interested vendor(s) (Indigenous Service provider only) seeking


development order may send their request to Head INDEG at the e-mail id as
designated for this purpose on ONGC tenders website alongwith the supporting
document in respect of capability to provide such services for which they are
seeking development order (e.g. existing facility, Udyog Adhaar
Certificate/Udyam Registration Certificate, GST Registration Certificate etc.).

17.2.4 Expression of Interest (EOI): INDEG in consultation with CPD / Delhi MM may
also periodically publish EOI for Development Order in ONGC Tender website
for wide publicity & will make efforts in identifying the probable vendors through
industry insight reports/contacts.

17.2.5. Factory/Facilities inspection: Subsequent to examining the request of the


vendor for development order, ONGC after being prima facie satisfied that such
domestic vendor (manufacturer/service provider) has Basic Capability to
develop the item/provide the service, inspection of the factory/facilities will be
carried out by Technical Team of ONGC consisting of representatives from:
1. QAD
2. INDEG
3. User
4. Authorized TPI of ONGC, if required.
5. Nominated by Chief Labs (applicable in case of Chemicals).

Factory inspection report will be approved by Head INDEG.

In case, factory/facilities inspection has already been carried out by ONGC


earlier, then inspection of factory/facilities again may be waived off.

17.2.6. Formal Enquiry: After satisfactory inspection of their factory/facilities and


ascertaining their capability to manufacture the item/provide the service, formal
enquiry along with ONGC tender conditions shall be issued through ONGC e-
procurement-portal to such vendor seeking their quotation along with following
terms and conditions:

i) Quantity (and/or Scope of Services): As deemed necessary by ONGC to


carry out field trial testing.
[To be decided by INDEG in consultation with work center and Corporate
Technical Services]

ii) EMD: Not required.

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iii) Rates for Order placement: Rates quoted by the vendor or the rates at which
ONGC has placed the latest order for the same item/service of same technical
specifications/scope of work, whichever is lower.

If any item/service being offered is not exactly the same as that of LPR,
contract may be awarded after ascertaining reasonability of rates.

iv) Payment(Goods): 50% payment will be made after receipt of material at work
center after prior satisfactory inspection and balance 50% will be made against
the satisfactory performance certificate issued by ONGC after field trial testing.

Payment (Services): On case to case basis. INDEG will decide payment


terms on milestone basis.

v) Delivery/Completion Period: As quoted by bidder and mutually agreed


between bidder and ONGC.

It should be at the discretion of ONGC to grant time extension, if any,


required to complete the development order.

(MM113/2023 dated 08.12.2023)


[The extension may be granted by CPA without Procurement Evaluation
Committee. However, L-1 shall have full power in this regard. Any extension
beyond 6 months shall only be considered if there are rational / compelling
reasons for the same].

vi) PBG: Nil (No Performance bank Guarantee/Security Deposit shall be


required).

vii) Liquidated Damages: Nil (Liquidated Damages shall not be applicable.)

viii) Terms and conditions: Except otherwise mentioned above, ONGC standard
terms and conditions shall apply.

ix) Inspection (applicable for Goods) and Field Trial Testing: Quality
Assurance Plan shall be developed by vendor, covering inspection & field trial
testing both. Quality Assurance plan will be approved by INDEG in consultation
with QAD. Inspection to be carried out by ‘a team consisting of representative
of QAD, TPI (if required) and User.’ Stage wise inspection, if required, may be
done to ensure overall quality control. Inspection authority to be decided at the
time of placement of order. After Satisfactory inspection, field trial testing will
be carried out by the user. The duration of field trial shall be decided by ONGC.

In case of services also, inspection (wherever required) and Field Trial Testing
will be carried out in the same manner.

x) A development order shall be considered as executed and the respective


bidder shall be considered as developed / proven source only after satisfactory
inspection and field trial testing and issuance of a certificate by Head INDEG.

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xi) Development order shall be awarded subject to compliance of technical
specification/scope of work, tender conditions including General Terms and
Conditions.

xii) Vendors (bidders) may be informed that mere applying for development order
and subsequent successful inspection of factory/facilities by ONGC, does not
qualify any vendor for any assured development order(s) from ONGC.

xiii) Vendors may get their Chemical samples tested at ONGC labs on payment
basis before/during development process. Wherever testing of chemical
samples in ONGC labs is required as a part of inspection or sampling/bonding
by ONGC, testing charges shall be on ONGC’s account.

xiv) Notwithstanding the above provisions, successful development and or supply


to ONGC thereof does not guarantee the vendor any assured order(s) from
ONGC.
(MM/112/2023 dated 30.11.2023)
(MM/121/2024 dated 21.03.2024)
17.2.7. Restriction on number of development Orders:
Maximum 03(three) development orders can be placed on a vendor at a time.
However, any exception to this can be further allowed in case it is manageable
by the vendor concerned, with the approval of the Head MIND.

Not more than 05 (five) Development Orders will be placed on different


vendors (manufacturers)/service providers for the same item/service at a time
(including development orders under execution).

17.2.8. INDEG will also prov ide all technical assistance to vendors, wherever required.

17.2.9 Priority/initial application of developed products/services should be in low risk


area.

17.2.10 In case the bidder has satisfactorily executed development order (i.e. including
satisfactory inspection and Field Trial Testing) for similar items/services in the
past in ONGC/OIL , then the bidder does not have to satisfy experience criteria
of BEC in ONGC. However, ONGC will reserve right to change this policy
anytime in future.

As OIL also uses items/services similar to ONGC, any product/service


developed in OIL shall also be considered as proven source.

17.2.11 Development Order, R/C for Spares: Any vendor (Indian manufacturer) who
want to develop generalised spares may be given opportunity to develop the
generalised spares through development order process. Generalised spares
once developed, can be purchased by work centre directly from the developed
source(s). If required, rate contract can also be finalized for procurement of
generalised spares with such developed source(s). Such developed vendor

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will be considered at par with OEM and the provisions applicable for OEM shall
apply for Purchase of developed spares directly from such vendor.

17.2.12 API license/monogram: Requirement of API license and/or API monogram is


part of Technical Specifications for some items. If domestic
vendor(manufacturer) do not have the requisite API license and requests to
allow them to develop items without API License/monogram, INDEG in
consultation with user Dept. may take a decision to allow the vendor to develop
item without API license/monogram, except for down-hole equipment,
tubulars, critical handling tools and well control equipment etc. Inspection of
the items will be done as per API Standards. Due caution and care shall be
exercised while allowing the vendor to develop item without API
license/monogram. However, while participating in regular tender, such
developed vendor should have valid API license as per requirement of the
tender.
(MM/121/2024 dated 21.03.2024)
17.2.13 During Development of the product, there may be instances of failure in the
field Trial Testing. Therefore, the Vendor (Contractor) shall have the option to
substitute/replace the product after rectifying the deficiency.

Action like initiating the banning process or putting the vendor on Holiday for
regular tenders will not be taken for non-execution of development order,
however in case of non-execution, no development order shall be placed on
such vendor for the same item in future. The list of such vendors along
alongwith item(s) for which they will not be considered for development
order(s), shall be maintained by INDEG.

17.2.14 Powers for placement of development order will be as per BDP. For clarity,
existing provisions on reporting of nomination cases as stipulated at para
16.10.6 of IMMM shall not apply on development order process as this process
is meant for development of vendor, which is different from procurement
through nomination tender.

17.2.15 In view of above, suitable conditions shall be incorporated in RFQ for


Development Order.

17.3 Vendor Empanelment

(MM/70/2021 dated 24.08.2021)


17.3.1 Vendor empanelment should be carried out as a practice for
items/services being procured on regular basis by different work centers
including civil works for preparation of site for Drilling/Workover Rigs,
laying & maintenance of pipelines, where deemed-exports benefits are not
available. Empanelment of vendors can also be carried out for LSTK
contracts, wherever feasible. Vendor Empanelment will be carried out only
for cases where annual procurement value is more than Rs.1 cr. on overall
ONGC basis.

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For the services/LSTK Contracts, wherever consortium arrangement is
allowed, Vendor empanelment process will not be carried.

Vendor empanelment process will not be applicable for services, where QCBS
or least cost selection criteria is required to be followed.

Vendor empanelment can work along with other best practices including
category management as well as best practices of tender execution such as
quality and cost based selection (QCBS) or lowest cost based selection (L1).
(MM/112/2023 dated 30.11.2023
17.3.2 The empanelment always occurs for a combination of vendor along with
category, item or service. Empanelment of vendors for any item/services can
be done with the approval of CPO.

17.3.3 Deleted (MM/112/2023 dated 30.11.2023)

17.3.4 Vendor empanelment will be for a period of 3 years.

Vendors will be de-empaneled, in case of suspension of business dealing with


them as per tender conditions and provision of this IMM Manual. Period of de-
empanelment will be co-terminus with the suspension period. After completion
of suspension period, vendor will have to participate in the fresh empanelment
through empanelment window which is being opened every year.

(MM/112/2023 dated 30.11.2023


17.3.5 Empanelment of vendors for any item/service, will be done by Central RC &
Empanelment Procurement Group under CPD

These empanelled vendors will be utilized subsequently by all the work centers
of ONGC for inviting limited tender for these items/services.

Further, the process of empanelment of vendors will be initiated for such


items/services where sufficient numbers of vendors (i.e. at least 3 prospective
vendors) are available.

The list of the items/services for which vendors are to be empaneled will be
reviewed every year for addition/deletion of item/service based on the past
experience, with the approval of CPO.

17.3.6 Methodology for Empanelment and subsequent award of order after


finalization of requirement/ scope of work:

I. Empanelment shall be done by inviting an open tender through ONGC e-


tender portal.

Work center will decide on the type of tender to be invited i.e. indigenous
tender or ICB tender, based on the availability of vendors and various

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guidelines on procurement. Tender will be invited by following Standard Terms
and conditions as applicable along with required Technical specifications /
scope of work.

Bidders shall be asked to submit their techno-commercial proposal, as per the


requirement of tender. Documentary evidence in support of their claim to fulfil
the requirement of BEC (Technical & commercial) shall also be provided by
the bidders alongwith undertakings required to be furnished by them.

II. Criteria for short-listing of Bidders for empanelment shall be techno-


commercial only, which is as under:

a) Technical Capabilities of the bidders will be evaluated in line with


requirements of Technical BEC to be framed on case to case basis.

b) Commercial Capabilities of the bidders will be evaluated in line with


requirements of Commercial BEC. The following commercial
declarations/ appendices shall be obtained from the bidders during
empanelment:

(i) Power of attorney


(ii) Integrity Pact
(iii) Back up authority letter from manufacturer (In case of materials)
(iv) Various other generic Proformas and declarations to be
obtained at the time of empanelment as per existing standard
commercial BEC & tender conditions.

In case of materials, vendors are allowed to quote with back-up authority


letter from the concerned manufacturer. Such back-up authority letter
should be valid till execution of all the contracts awarded against
empanelment.

Similarly, for services, in case bidder has submitted the bid on the basis of
technical experience of another company (supporting company), then the
required arrangement and undertaking/corporate guarantee/ required
documents should remain valid till execution of all the contracts awarded
against empanelment.

Bidders will be asked to submit an undertaking/confirmation to the effect that


at the time of inviting Limited tender from empaneled vendors, they will be
required to maintain minimum local content requirement as per prevailing
guidelines.

No EMD will be required for empanelment of vendors.

c) Financial Criteria: The applicability of the financial criteria at the time of


empanelment will be decided based on the estimated cost for minimum
quantity for which bidders were allowed to quote in the tenders invited in last

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three years. As price bids are not being sought during the empanelment
tender, minimum requirement for turn-over and net-worth will be mentioned
upfront in the tender for empaneling the vendors.

Subsequently, while inviting limited tender from the empaneled vendors,


financial criteria will be as per existing guidelines. It will be specified in the
tender for empanelment that bidders will be required to meet financial criteria,
if applicable, at the time of inviting limited tenders from the empaneled
vendors.

(MM/124/2024 dated 16.04.2024)


III. Subsequent to empanelment, limited tender shall be invited among the
empaneled vendors. Such limited tender shall be invited through GePNIC-
CPPP or GeM portal by incorporating the Additional Terms and Conditions
(ATC) with regard to awarding the contract/PO only to Empaneled vendors.
Such limited tenders are not required to be published again in tender website
with PQC, since the original empanelment process has gone through
competitive bidding.

IV. Empanelment window for fresh empanelment in the subsequent years:

The empanelment window for fresh empanelment shall be opened every year
for empanelment of new vendors. However, after empanelment of vendors for
the first time for a particular item/service, empanelment window shall also be
opened within 6 months of the empanelment to enable left out eligible vendors
to get empaneled. After evaluation, new qualified vendors, if any, shall be
added to the list. Any vendor who is already empaneled but desires to propose
any changes shall be required to participate in the evaluation during opening
of fresh empanelment. The vendors empaneled during the yearly cycle shall
only be allowed to participate in tenders being floated after they are
empaneled. These bidders shall not be considered for the ongoing tenders.
The term period of empaneled bidders in the yearly cycle shall be co-terminus
with that of the bidders empaneled during the initial phase.
Empanelment process shall be completed within 90 days.

(MM/112/2023 dated 30.11.2023


(MM/113/2023) dated 08.12.2023---para modified
V. The offers received from vendors for empanelment shall be evaluated by the
respective groups namely Technical, MM & Finance and recommendations
for empanelment shall be put up to concerned Director. However, for all the
intermediate steps prior to final recommendation for empanelment of vendors
such as invitation of tender, approval of BEC, seeking clarification from
bidders etc, CPO shall have full powers.

VI. Items/Service wise list of empanelled vendors along with detailed contract
conditions shall be uploaded on the MM website for information of work
centers and inviting limited tender from empanelled agencies. To facilitate this,
work center responsible for empanelment shall provide these details
immediately after empanelment to PMC for uploading in MM website.

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VII. In case, number of vendors empanelled for an item/service is less than 3,
then procurement/hiring of such item/service will be done through other mode
of tendering and not by inviting limited tender from empanelled vendors.
However, in such cases (i.e. where number of empanelled vendors are less
than 3), empanelled vendors will be considered meeting technical experience
criteria and will not be required to submit the documents in this regard.
Suitable provision in BEC will be incorporated by work center while inviting
such tenders.

VIII. Around six months before expiry of normal empaneled period, the qualification
criteria for empanelment shall be reviewed based on extant guidelines on
procurement and experience gained. Empaneled vendors will be requested to
submit their offer for renewal of their empanelment based on the above along
with the other requisite documents as considered necessary by work center in
line with (II) above.

Renewal of empanelment for already empaneled vendors shall be done based


on the response of the vendors. The renewal process shall be completed
before expiry of existing empanelment period. Empaneled vendor must have
participated in at least one of the subsequent limited tenders invited from
empaneled vendors. Otherwise they will not be considered for renewal of
empanelment for that item/service/works.
(MM/112/2023 dated 30.11.2023
IX. Subsequent to empanelment of vendors, limited tenders will be invited by
respective work centers with firm scope of work/technical special conditions of
contract, if any. Empaneled vendors while submitting the bid shall confirm that
there is no change in the details/documents/confirmations submitted by them
during empanelment.

The bid security requirement shall be exempted for all limited tenders to be
invited from the empanelled vendors. All the bidders shall be required to sign
a Bid securing declaration accepting that if they withdraw or modify their Bids
during the period of validity, or if they are awarded the contract and they fail to
sign the contract, or to submit a performance security before the deadline
defined in the NIT, they will be suspended for the period of two years. Further,
for eventualities mentioned above for post award of contract, the suspension
of two years shall take place, in case the work center decides to cancel the
NOA/contract due to non-submission of performance security or non-signing
of contract. The suspension of business dealing with vendor shall be based on
the outcome pursuant to conclusion of an enquiry process and with due
approval of concerned L-1. The said competent authority shall also be vested
with the power to appoint the Enquiry Officer for conducting enquiry.

Limited Tender enquiry shall be issued to all the vendors empanelled for
particular items/services. Empanelled vendors will be provided 10 days’ time
to submit their offer/bid.

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In case of change in General Terms & Conditions of tender document
subsequent to empanelment, acceptance of such tender Terms & Conditions
will be obtained while inviting limited tender enquiry from empanelled vendors.

This limited tender enquiry shall mainly consist of the following:

1. Confirmation from the Bidder that there is no change in the


details/documents/ confirmations submitted by bidder during their
empanelment.

2. Acceptance of scope of work/technical special conditions of contract


as per tender.

3. Power of attorney.

4. Integrity Pact

5. Back-up authority letter from manufacturer (In case of materials).

6. Acceptance of General terms & conditions modified subsequent to


empanelment.

7. Details regarding various purchase preference policies, if any.

8. Documents with regard to Financial Criteria, if applicable.

9. Undertakings/Declaration w.r.t. banning and confirmations for


submission of genuine documents etc.

10. Any Certificate such as API, BIS, ISO (if applicable) pertaining to an
items/services having specific validity.

11. Price bid.

12. Any other documents considered necessary by the work center

Contractor/supplier shall be required to submit the security deposit. The


Payment to the contractor will be made by the work center as per empanelment
conditions.

X. Post Contract issues after award of order shall be handled by work centers
placing the order.

17.4 Vendor Appraisal

17.4.1 Vendor appraisal should be conducted for all vendors

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17.4.2 Vendor appraisal will be carried out at two stages – tendering and
order/contract execution. Thus the vendor who is awarded the contract will
get two separate ratings, one for performance during tendering phase and
second for performance during order/contract execution stage. All the other
vendors who participate in the tender but are not awarded the contract or
withdraw from the process midway will be given one rating only for
performance during tendering phase.

17.4.3 Vendor appraisal will be used for the purpose of vendor selection for
subsequent steps and also for the purpose of determining if empanelled
vendors need to be de-empanelled.

17.4.4 All vendors will have two types of ratings (tendering and contract execution)
which will be recorded. These Vendor ratings shall be included as technical
criteria for evaluation of the bid in the next tender in the same category / item
/ service.

17.4.5 In addition, in QCBS bids, appropriate weights can also be assigned to vendor
ratings to make the selection criteria more stringent. Separate weights shall be
assigned to tendering rating and execution rating.

17.4.6 For first time new vendors, a rating of 7 will be allocated to them for both
bidding and execution. This original rating will be used till the vendor has at
least 3 ratings from which average can be taken.

17.4.7 Subsequent to their first tender participation, newer tendering rating will be
compiled as (2/3) * 7 + (1/3) * rating 1. Similarly after their first delivery / project
completion, newer execution ratings will be compiled as (2/3) * 7 + (1/3) * rating
1

17.4.8 After the completion of the second tender/ project / delivery, newer ratings are
compiled as (7 + rating 1 + rating 2) / 3.

17.4.9 For vendors who are returning after holiday/ banning, the last vendor rating
for the vendor in the system will be used.

17.4.10 For vendors who have not been selected for any project in the last 2 - 3
delivery cycle for the item, there last rating in any bid will be used as a rating
any subsequent bids

17.4.11 Vendor Rating process

a. For each activity after the notification period, adequate times should be
defined.

b. After award of contract, timelines for all the project milestones along with
net value impact (value preferably in terms of Net Present Value or any
other proxy to incorporate milestone criticality along with milestone
payment) are defined. Subsequent measurement of vendor performance
happens on the basis of delivery in full against these timelines.

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c. Vendor rating needs to be performed at 3 levels

i. For each milestone of a tender/project, performance of vendor is


measured against delivery milestone

ii. For each tender/project, performance across all milestones are


measured and combined using a measure of impact (NPV impact
or criticality to overall project) to get an overall score for the entire
tender/project

iii. For getting a final vendor rating which is a combination across


multiple tenders/projects, average of all vendor ratings across
different tenders/projects is taken for a time period which is equal
to 3 times the standard delivery time for a contract in the specific
category, item or service or 5 years whichever is lower

a. For the tendering phase, following milestones can be utilized

i. Bid submission – Correct submission of all documents as


stipulated in the tender document. Any request for extension for
bid submission deadline will result in negative impact on vendor
rating as explained below:

Score: Request for extension of TBO

11: No request for extension

9: Extension for 1 to 7 days

8: Extension for 8to 15 days

5: Extension for more than 15 days

ii. Bid validity, Bid withdrawal and unsolicited communication

Score of 11 if no there is not Bid Withdrawal, Correct Bid validity


and No unsolicited communication from Bidder

Score of 0 if Bid is withdrawn or ONGC decides to cancel their


bid due to non-compliance to tender conditions

Else, score will be affected negatively by 1 point for each


transgression

For eg, if bid validity was incorrect but bidder changes it when
ONGC asks them, their score will be reduced by 1 point.

For every unsolicited communication, their score will be


reduced by 1 point.

iii. Timely response to queries

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Score: Delivery Timeline

11: No requirement of any clarifications

10: Acceptable response before the day of deadline

9: Acceptable response on the day of deadline

8: 1 day delay in Acceptable response

7: 2 day delay in Acceptable response

6: 3 day delay in Acceptable response

5: 4 day delay in Acceptable response

4: 5 day delay in Acceptable response

3: 6 day delay in Acceptable response

2: 7 day delay in Acceptable response

1: 8 day delay in Acceptable response

0: More than 8 day delay in Acceptable response

d. For each milestone in a project, clear timelines are defined. As far as


possible, individual activities in a milestone for the vendor / contractor
should have as few overlaps from external agencies and ONGC as
possible.

i. Against each milestone timeline, date of final delivery of items /


services are identified and scored according to the criteria
mentioned below.

Score: Delivery Timeline

11: Better than on time delivery / execution

10: Delivery on time (upto 1% more or 1 day (whichever is


more) than time allocated for the milestone

9: 1 - 10% delay (rounded to the nearest day) compared to


milestone timeline

8: 10 - 20% delay (rounded to the nearest day) compared to


milestone timeline

7: 20 - 30% delay (rounded to the nearest day) compared to


milestone timeline

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6: 30 - 50% delay (rounded to the nearest day) compared to
milestone timeline

5: 50 - 70% delay (rounded to the nearest day) compared to


milestone timeline

4: 70 - 100% delay (rounded to the nearest day) compared to


milestone timeline

3: 100 - 150% delay (rounded to the nearest day) compared to


milestone timeline

2: 150 - 200% delay (rounded to the nearest day) compared to


milestone timeline

1: 200 - 300% delay (rounded to the nearest day) compared to


milestone timeline

0: More than 300% delay (rounded to the nearest day)


compared to milestone timeline

ii. Quality of vendor output is incorporated in the overall criteria for


vendor appraisal by ensuring that final delivery completion
certificate should be handed only after the delivered item /
service has been tested for quality and has passed the
prescribed inspection norms.

iii. Quality and inspection process needs to move from one time
check at the time of delivery / milestone completion to a system
of continuous quality check and inputs from continuous quality
management should be used with empanelled vendors to work
on methods to improve delivery and performance.

b. Overall Tender/Project Rating

Combination of different milestones to be carried out on the basis of value


impact of the specific milestone step.

Only in cases where impact value of all milestones cannot be calculated,


each step will be given scores in terms of criticality towards project
deliverable (least critical step will be given a score of 1, most critical step
will be given the maximum score - equal to the total number of milestones
in the requirement) and the total project score will be calculated as a
weighted average of all these milestone scores.

For the tender rating, the three milestones as defined in sub-clause(d)


above can be accorded equal weights.

c. Vendor response time for post contract issues will also be measured.
Rating scale for post contract issues will be shared at the time of the
closing delivery milestone.

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17.4.12 All criteria for vendor rating will be shared upfront with the vendor at the time
of tendering. No modification of vendor rating for a project will be allowed for a
project which is already under execution.

17.4.13 The vendor rating formats for respective categories shall be developed by the
respective MM team / Category manager dealing with the category / item /
service and shall be approved by the concerned Director. The respective MM
team / Category manager dealing with the category / item / service will be
responsible for executing the vendor rating.

17.4.14 The vendor rating can also be linked to the IT system in case it is completely
objective and can be mapped to the system.

17.4.15 Vendor Feedback and Co-Development

a. In addition, to the formal rating process, a vendor feedback process will


be carried out to facilitate execution / delivery without delays and actively
work with quality vendors to further improve on project / item / service
metrics (cost, time, quality etc.)

b. Each milestone step is divided into multiple checkpoints.

Checkpoints in any delivery / milestone will be after every 2 months (from


the start of contract) or in case the milestone timeline is less than 6
months, the entire milestone will be divided into 3 equally timed
checkpoints.

c. At each checkpoint, stock of the progress of the current milestone will be


taken, root causes or roadblocks for specific issues will be identified and
plan for the next checkpoint stages, milestones, projects will be updated.

d. Further, In charge MMs should fix one-day in a month for suppliers’


complaints and resolution of issues. MM Depts. at Work Centre under the
guidance of the Key Executive are also advised to hold "Interactive Meets"
with the local vendors at least once in every year) to be used as a platform
for interacting with the vendors for resolution of their issues/complaints
and redressal of their grievances and to have better participation from
local prospective bidders in tenders for incidental requirement., besides
educating them about ONGC's tendering procedure. The expectations
from the vendors against vital tender requirements and the common errors
and lapses committed by the vendors should be highlighted during such
"Interactive Meets with Vendors". Senior officers from all disciplines
should participate in the meet. The issues requiring resolution at the local
level should be addressed by taking suitable actions. However, any policy
issues should be referred to PMC with the recommendations of the Work
Centre duly endorsed by the Key Executive. Work Centres are advised to
invite MSEs (including those owned by SC/ST entrepreneurs) of their
locations for participating in such Periodical Interactive Meets with
Vendors, for resolution of their issues, besides educating them about
ONGC's tendering procedure.

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17.5 Vendor Banning

17.5.1 Removal from the approved list: The name of the contractor may be removed
from the approved list of contractors, by the enlisting authority, if it:

a. has a rating below the cut-off rating of 4

b. has, on more than one occasion, failed to execute a contract or has


executed it unsatisfactorily; or

c. is proved to be responsible for constructional in two or more separate


instances; or

c. If persistently violates any important conditions of the contract; or

d. Fails to abide by the conditions of empanelment; or

e. Is found to have given false particulars at the time of empanelment; or

f. Has indulged in any type of forgery or falsification of records; or

g. Changes constitution of the firm or Individual without prior approval of the


empanelment authority; or

h. Is declared or is in the process of being declared bankrupt, insolvent,


wound up, dissolved or partitioned; or

i. Persistently violates the labour regulations and rules; or

j. Is involved in complaints of serious nature received from other


departments which prima facie appear to be true.

k. transgresses relevant provisions of Integrity Pact

l. Fraudulent activity, wilful mis-conduct, mis-representation, mis-


declaration, security considerations including loyalty to state, adverse
vigilance or CBI report, Govt. instructions, etc

m. If proprietor of the firm, its employee(s), partner(s) or representative(s)


is/are convicted by a court of law following prosecution by the CBI or under
normal process of law for offences involving moral turpitude in relation to
business dealings

n. If there is strong justification for believing proprietor or employees or


representatives of firm have been guilty of malpractices such as bribery,
corruption, fraud, substitution of tenders, interpolation, misrepresentation,
evasion or default in payment of any tax levied by law.

o. If the firm contumaciously refuses to return Govt./ONGC's dues without


showing adequate cause and Govt./ONGC are satisfied that this is not

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due to a reasonable dispute which would attract proceeding in arbitration
or court of law.

p. If the firm employs a Govt./ONGC employee, dismissed/removed on


account of corruption, or employs a non-official convicted for an offence
involving corruption or abetment of such an offence, in a position where
he could corrupt Govt./ONGC employees.

17.5.2 Vendor Banning Process

(MM/02/2015 dated 08.04.2015)


(MM/82/2023 dated 17.01.2023)
(MM/112/2023 dated 30.11.2023
(MM/117/2023 dated 29.12.2023
The Committee of Directors consisting of concerned Director, Director-I/c MM
and Director (F) shall be competent for approving proposals for banning of
business dealings with erring vendors including the decision to ban totally or
partially (i.e. provide an exemption window) or not to ban at all, fixation of the
quantum of banning period and review / modification / revocation, if any, of the
banning decision. Head- MIND shall be the nodal officer to assist this
Committee and all the proposals from the Work Centre shall be first scrutinized
by Head- MIND before they are put up to the committee of Directors. Following
process shall be followed for the purpose of banning any vendor:

(MM/26/2017 dated 21.06.2017)


(MM/112/2023 dated 30.11.2023)
a. In case it is decided to suspend business dealing with the defaulting
supplier/contractor, the concerned Key Executive at the Work Center shall
have full powers for initiating banning process against the erring firm. The
concerned Key Executive shall also nominate an Enquiry Officer. The
Enquiry Officer shall not be less than the E-6 level executive (who did not
handle the case in any capacity) for conducting the proceedings.

b. Consequent to obtaining approval for suspension of business dealings,


communication shall be sent to the supplier/contractor conveying
suspension of business dealings with him pending completion of inquiry.
This communication should clearly indicate the reasons for the same and
specify that after completion of inquiry, if it is found that the fault is on the
part of the Supplier/Contractor, then they shall be put on holiday [i.e.
neither any tender enquiry will be issued to such a Supplier by ONGC
against any type of tender nor their offer will be considered by ONGC
against any ongoing tender(s) where contract between ONGC and that
particular Contractor (as a bidder) has not been concluded] for a period of
two years. This communication should be issued by I/c-MM for cases
pertaining to MM and concerned Level-II for cases pertaining to other
departments, by Registered Post with authenticated acknowledgement

c. Simultaneously, inquiry shall be conducted by ONGC(through the enquiry


officer appointed), in quasi judicial manner but during the period inquiry is
being conducted, business dealings with the defaulting

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supplier/contractor shall remain suspended i.e. ONGC shall neither issue
any tender enquiry to him nor shall consider his offer in any ongoing
tender

d. The Enquiry Officer shall issue legally vetted show cause notice to the
firm by Registered Post with authenticated acknowledgement. Show
Cause Notice should bring out allegations and asking why business
dealings with the firm should not be banned. The Enquiry Officer shall
also monitor receipt of reply in given time and shall submit the inquiry
report to the Key Executive of the Work Center. While submitting the
inquiry report, Enquiry Officer shall also suggest the period of banning
business dealings with the erring firm depending upon the gravity of the
offence committed by the firm.

e. Enquiry Officer shall ensure that enquiry process for banning of business
dealings with erring vendor is completed within 4 months from the date of
his appointment as Enquiry Officer. Further, it would be ensured that final
banning order is issued within 2 weeks from completion of enquiry
process.

(MM/82/2023 dated 17.01.2023)


(MM/112/2023 dated 30.11.2023)
(MM/117/2023 dated 29.12.2023
f. The Key Executive shall peruse the inquiry report along with the replies
submitted by the firm and all other related documents of the subject case. In case
the recommendations of Enquiry Officer are in line with his decision for initiating
banning process, recorded earlier, Key Executive shall submit the case through
the Legal Section of the concerned Work Centre and Chief- Legal Services to
Head- MIND for obtaining approval of the Committee of Directors for issuing
the banning order. However, where based on the findings/recommendation of
the Enquiry Officer and the replies submitted by the firm and all other related
documents of the subject case, if the Enquiry Officer recommends not to ban
business dealings, then also the case shall be referred by the Key Executive with
due justification along with recommendations to Committee of Directors for
approval.

For review / modification / revocation, if any, of the banning decision, the


Key Executive shall submit the case with due justification along with
recommendations through the Legal Section of the concerned Work
Centre and Chief- Legal Services to Head- MIND for obtaining the
approval of Committee of Directors.

g. After obtaining approval of the committee of Directors, the Key Executive


of the Work Centre shall issue the order for banning of the firm. While
issuing the banning orders it should be ensured that banning order is a
speaking order, highlighting explicitly the vendor code, the reasons for
banning and the same should be duly vetted by the Legal Section of the
concerned Work Centre. Work Centre should ensure proper service of the
banning order by Registered Post with authenticated acknowledgement.

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h. Banning period shall be counted from the date of issue of initial order of
suspension of business dealings so that effective period of banning
remains same as stipulated period / period approved by Competent
Authority

i. For effective implementation of the these provisions, the concerned Work


Centre shall send a copy of the communication which has been addressed
to the vendor suspending business dealings with him/banning them (along
with the copy of approval of concerned approving authority) to PMC-
Corporate-MM along with the vendor code(s) of the defaulting
supplier/Contractor for uploading the same on the MM web-site under
“Names of Erring vendors with whom Business dealings have been
suspended/Banned” and blocking the vendor code of the concerned
vendor in the ICE system.

j. On conclusion of inquiry, if it is decided not to ban business dealings with


the supplier/contractor, then work centre shall immediately revoke the
suspension order and convey this decision to the Supplier by Registered
Post with authenticated acknowledgement. This decision should also be
conveyed to PMC Section for removing the name of the firms from the List
of firms with whom business dealings have been suspended, appearing
on the website

k. Initiating banning process where decision has been recorded by CMD in


a file to process the banning action on a firm: In such cases, consequent
to CMD’s decision to initiate proceedings for banning business dealings
with a firm, the concerned Key Executive at the Work Center shall process
implementation of the decision without any back reference to the field etc.
for initiation of a de-novo case and immediately initiate the proceedings
for banning of business dealings with the firm as per prescribed
methodology mentioned above and shall be completed in maximum 45
days from the date of CMD’s orders.

l. Deleted (MM/75/2022 dated 22.07.2022)

m. Banning order are to be issued for banning of the erring firm along with its
allied concern, partner or associate or director or proprietor involved in
any capacity etc. Such entities already operating in ONGC should be
identified by Work Centers to the extent possible and their corresponding
vendor codes should also be intimated to VM Cell for blocking

n. The guidelines on suspension of business dealing with a firm as per


clause 17.5.2-a above shall be applicable in case of termination of
Contract due to unsatisfactory performance, insolvency of the firm, delay
in mobilization , and / or annulment of the contract due to non-submission
of Performance Security, provided the related provisions have been
incorporated in the tender/contract conditions.

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18 Claims and Warranties

18.1 Warranty and Guarantee

18.1.1 Warranty and Guarantee for equipments and LSTK / Projects will be as per
provisions mentioned in Tender Document.

18.1.2 The details for Bank Guarantee for warranty in case of equipment and LSTK /
Projects will also be as mentioned in the Tender Document.

18.1.3 All software may be procured without any warranty. The tenders for
procurement of software should be invited along with its AMC wherever
required. It should be clearly stipulated in the BEC that value of the AMC shall
also be taken into account for evaluation along with that of the software. Annual
Maintenance Contract (on base price) should be entered into from the next day
of successful installation, commissioning and acceptance of the software. In
addition, a provision should also be made in the tender and the contract that
AMC can be terminated by ONGC at its discretion by serving an advance
notice of 30 days.

18.1.4 After placement of order/contract, simultaneous action should be initiated for


completing “Site Readiness” for installation and commissioning (including civil
work, electrical connections, and consumables etc., which are to be arranged
by ONGC as per contract terms) well in time. The indentor / project coordinator
should ensure timely installation and commissioning of the equipments so that
warranty period of minimum 12 months is fully availed after the date of
installation and commissioning.

18.1.5 In individual cases, wherever it is anticipated that longer period would be


required for completing installation and commissioning job, suitable provisions
in respect of the same should be incorporated separately in the special
conditions of tender/contract so that warranty period of minimum 12 months
is available after the date of installation and commissioning of the equipment.

18.1.6 In case the installation and commissioning is delayed on account of the


supplier/contractor, necessary extension in warranty period (so as to ensure
availability of warranty for a minimum period of 12 months from the date of
installation and commissioning) should be obtained from the
supplier/contractor at no extra cost, before final acceptance of the
goods/equipment/project after installation and commissioning

18.2 Liquidated Damages / Cancellation Clause

18.2.1 No liquidated damages clause will be inserted in contracts / supply orders for
purchases upto Rs.1 lakh. For other contracts LD should be used.

18.2.2 For OEM spares, OEM services, Proprietary chemicals and other articles of
proprietary, LD should not be used. However, in case of AMCs, LD shall be
imposed.

217
18.2.3 Liquidated Damages / Failure and Termination Clause will be as per terms
mentioned in the general conditions of the contract and special conditions of
the contract.

18.2.4 LD will be imposed on the total value of the order unless 75% of the value
ordered is supplied within the stipulated delivery period. Where 75% of the
value ordered has been supplied within stipulated delivery period, LD will
be imposed on the order value of delayed supply(ies). However, where in
judgment of ONGC, the supply of partial quantity does not fulfil the
operating need, LD will be imposed on full value of the supply order.
However, in cases involving supply to multiple consignees/port consignees,
Work Centre to frame a suitable clause for levy of L/D on consignee/port
consignee wise basis. The due dates for supply of each item/quantities on
consignee/ port consignee wise should be specified and LD should be levied
for delay in supplies beyond the dates specified for respective items/ quantities
on consignee/port wise value. For calculation of LD, Service will be deemed to
have been delivered only when all components and parts are also delivered so
that the entire work unit / service unit can be operated or executed as a whole.
If certain components are not delivered in time, the services, will be considered
as delayed until such time all the missing parts are also delivered.

Any change in deadline of delivery / mobilization / completion, copies of


letter authorizing extension of delivery/ mobilization/ completion date should
be endorsed to the following

(i) Indenting Officer

(ii) Quality Assurance Department

(iii) Consignee

(iv) Finance and Accounts Officer

(MM/109/2023 dated 30.10.2023)


(MM/113/2023 dated 08.12.2023)
18.2.5 Following procedure shall be followed for grant of extension of Delivery /
Mobilization / Completion date

a. In cases where the delivery/ work is not likely to be completed as per


original schedule, and cancellation/ termination of contract is not
contemplated, the time of delivery/ completion should be suitably
extended as per instructions given here under, before the expiry date of
mobilization/ delivery/ completion, in order that the contract shall continue
to be in force and the contractor remains liable to execute the contract.

b. Any extension due to entire delay being solely on account of contractor /


supplier will be decided by Competent Purchase Authority (concerned L-
1 shall have full power), on recommendation by the indentor (& MM, if
tender was processed by MM-dept.). This extension will be with levy of
LD as per the terms of contract, provided the indentor confirms continued

218
existence of the requirement. No Procurement Evaluation Committee is
required in this case. No financial concurrence is required. Normally, such
extension will be communicated to the contractor in the format given in
Appendix 4.

Provisions for penalization including vendor ratings should be exercised if


delay or extension is required due to faults attributable to the contractor.

c. Any extension, where delay in part may be on account of ONGC, will be


granted by the Competent Purchase Authority (concerned L-1 shall have
full power), on recommendation by the indentor (& MM, if tender was
processed by MM-dept.) with ONGC reserving right to levy LD, provided
the indentor confirms continued existence of the requirement. No
Procurement Evaluation Committee is required for such decision. No
financial concurrence is required. Normally, such extension will be
communicated to the contractor in the format given at Appendix 5.

The amount of LD shall be withheld on the proportionate basis, by


finance, from the bills of supplier/contractor, while releasing payments for
delays.

In case of LSTK contracts, on completion of delivery/ work, the delay


would be examined by Procurement Evaluation Committee (based on
the joint statement duly signed by both ONGC and Contractor which will
be prepared by concerned Nodal Technical Agency (for cases under
CPD)/ concerned Indenting/User Section (for other cases) at the level
mentioned at para 13.2.1. Concerned Level-II Officer of concerned
Nodal Technical Agency (for cases under CPD)/ concerned
Indenting/User Section (for other cases) shall have full powers in this
respect) and the quantum of LD will be approved by the CPA on
recommendation of PEC.

In case of material and services quantum of LD shall be recommended


by PEC (based on the comments of concerned Nodal Technical Agency
(for cases under CPD)/ concerned Indenting/User Section (for other
cases), if required) considering the extent of delay attributable to
contractor.

Proposal for time extensions shall then be considered by the Competent


Purchase Authority for approval on recommendation by the Procurement
Evaluation Committee regarding quantum of LD for the delay attributable
to the contractor. Concerned L-1 shall have full power, if (i) the LD rate is
as per provisions of Supply Order/Contract and (ii) delay attributed to the
contractor is not condoned either in part or full.

(MM/10/2016 dated 23.03.2016)


d. – Deleted -

219
e. Notwithstanding anything stated in the foregoing paras, as a rule, no
extension should be given for a period of more than one year beyond the
originally scheduled date of delivery/mobilization/completion date. The
delivery date extensions for more than one year beyond the original
schedule shall require approval of concerned L-1.

(MM/04/2015 dated 28.04.2015)


f. Seeking approval for extension in delivery/mobilization/completion period
on ex-post facto basis should be avoided, as far as possible and that
extension, if any, in delivery/mobilization/completion period should be
given to the contractor before the expiry date of mobilization/delivery/
completion after obtaining approval of the competent authority. However,
in exceptional circumstances, if extension in delivery/mobilization/
completion period is not given before the expiry of the
delivery/mobilization/completion period, in such cases, ex-post facto
approval for extension of delivery/mobilization/completion period can be
accorded by the authority as per delegation already provided in the MM
Manual. In such cases, detailed reasons and justification should be
brought out while obtaining the approval of the competent authority

(MM/50/2019 dated 04.07.2019)


(MM/114/2023 dated 20.12.2023)
g. Normally the cases involving extension due to delay on account of
contractor/supplier shall be considered with levy of LD at the rate as per
contract terms and without condoning any delay attributed to the
contractor. However, in compelling circumstances beyond the control of
supplier/vendor, a holistic view may be taken for considering waiver of
Liquidated Damages. Any proposal, with full justifications, for waiver of
LD rate in such cases, and/or condonation of delays attributed to
contractor shall require the approval of Competent Purchase Authority
not below L1, on the recommendations of Procurement Evaluation
Committee (based on the comments of concerned Nodal Technical
Agency (for cases under CPD)/ concerned Indenting/User Section (for
other cases), if required).

h The aforesaid provisions shall be applicable even if the contract has a


provision for automatic termination on account of delay in delivery.

(MM/04/2015 dated 28.04.2015)


(MM/109/2023 dated 30.10.2023)
(MM/113/2023 dated 08.12.2023)
(MM/114/2023 dated 20.12.2023)
i. In LSTK projects, material and services where delay is solely attributable
to ONGC, the reasons for delay should be adequately brought out in the
minutes of Procurement Evaluation Committee (based on the comments
of concerned Nodal Technical Agency (for cases under CPD)/ concerned
Indenting/User Section (for other cases), if required). Under such
circumstances, Competent Purchase Authority (CPA) (concerned L-1

220
shall have full power) may grant extension of completion period to the
extent of such delay is attributable to ONGC, without imposing liquidated
damages.

221
18.2.6 Review of decision to impose LD
(MM/112/2023 dated 30.11.2023
In case Competent Purchase Authority finds it necessary to revise his own
earlier decision imposing LD and to waive recovery thereof, he should obtain
the approval of the next higher authority for doing so. The cases falling under
powers of MCoDP will be approved by MCoDP.

(MM/10/2016 dated 23.03.2016)


18.2.7 If in a contract containing provisions for releasing the withheld amount of LD
against submission of Bank Guarantee, it is decided to release the amount of
withheld LD against BG, then it is to be ensured that the Bank Guarantee
submitted by the contractor remains valid till the final settlement of the issue
regarding levy of LD. As regards ensuring the validity of BG till final settlement
of the issue, though primarily it is the responsibility of the dealing MM officer,
but the Head of the MM department should also regularly monitor the validity
of BG to ensure that it remains valid till final settlement of the issue regarding
levy of LD.

18.2.8 Liquidated damages will be calculated on the basis of supply order price of
materials excluding duties and taxes, where such duties/taxes have been
shown separately in contract/supply order. In case of service contracts LD will
be calculated on the basis of annual contract value excluding duties and taxes,
where such duties/taxes have been shown separately in the contract

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19 Change Orders

19.1 Definition

19.1.1 Change order will be applicable in all the LSTK/EPC contracts for
Offshore/Onshore Projects, repair and revamp projects and other works
including the dry docking and major overhauling of vessel/equipments. A
change order will be initiated only in case

(i) the Company directs in writing the Contractor to include any addition
or deletion to the scope of work
(ii) Contractor requests to delete any part of the Work which will not
adversely affect the operational capabilities of the facilities and if the
deletions proposed are agreed to by the Company
(iii) the Company directs in writing the Contractor to incorporate changes
or additions to the Design Criteria requirements covered in the Contract.
(iv) Any other contractual change leading to cost benefit as per contract
terms (negative change order)
19.2 Change order process

19.2.1 Any change/extra work not covered under current contract is identified. This
requirement can be in terms of points (i) to (iv) in para 19.1.

19.2.2 Once such requirement has been identified, in case the supplier / contractor is
in a position to deliver the additional items / execute the additional works, the
detailed technical assessment related to the requirement is carried out by the
supplier / contractor and is finalized between the ONGC representative and
the supplier / contractor.

In case of additional goods, the finalization may involve indicative timelines for
delivery.

In case of change in scope of work, the finalization may involve detailed


technical requirements / design needed for executing the work.

19.2.3 In case of reduction in requirement, the detailed technical assessment


indicating why the work can be removed is carried out by the supplier
contractor and is finalized between ONGC representative and the supplier
/contractor.

19.2.4 The supplier / contractor provide initial cost estimation (addition / reduction) for
executing the change order.

(MM/26/2017 dated 21.06.2017)

19.2.5 The Competent Authority for approval of this change order is decided on the
basis of para 19.2.9 below.

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19.2.6 No approval to go ahead with the extra work/change order shall be given
without approval from Competent Authority(including that of initial cost
estimate). After the approval has been obtained from the relevant Competent
Authority, the go - ahead can be given to the supplier / contractor for initiating
execution on the new requirement.

(MM/113/2023 dated 08.12.2023)


19.2.7 The detailed change order proposal with cost and time impact shall be
obtained from the contractor and put up by the Project Manager/ Project
Coordinator along with the consultant’s views for deliberation and
recommendation of PEC for final approval of the competent authority
mentioned at 19.2.9 below.. After the approval of the appropriate authority as
at 19.2.9 below, all such change orders shall then be issued by the Contract
signing authority. Such approval shall be conveyed to the contractor based on
the recommendations of PEC duly approved by appropriate Authority as
mentioned above. Adequate justification for the quote provided in case of
purchase of material should also be taken from the contractor.

19.2.8 The final cost will not exceed the initial estimated cost. Initial estimated
time/COST impact indicated by Contractor shall be considered as a ceiling limit
and shall be provisionally considered for taking a decision to implement
change order. However, in case of negative change order/cost benefit, the
initial cost benefit so indicated shall be considered as the datum & final cost
shall not be lower than the same.

19.2.9 Administrative/ Technical and Financial Powers for Approval of Change Orders
will be as per BDP

Notes:
(MM/112/2023 dated 30.11.2023
a. Approval of the competent authority as mentioned above needs to be
obtained before authorizing the contractor to go ahead with execution of
the Change Order. However, in exceptional situations where there is an
urgency or emergency, authorization to go ahead for executing the
change order should be obtained with the approval of the concerned L-1
for all cases including MCoDP level cases. However, even in this case,
an interim cost estimate has to be provided. The final cost estimate
cannot be more than of this initial cost estimate. At the same time, action
should be initiated concurrently to prepare cost estimates for finalizing
the value of the Change Order.

b. The formal amendment to the contract can be issued only after obtaining
due financial expenditure sanction for the revised estimate in case
change order results in increase in cost.

c. These powers shall be exercised within the overall sanction accorded.

d. In case of increase in total cost, additional expenditure sanction shall be


obtained from the Competent Authority. If increase is more than 10% of

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the contract value, Expenditure Sanction of the Competent Authority
shall be obtained as per BDP

e. Shifting of contractual completion date due to change order and change


orders having impact on overall project completion schedule shall also
need approval of Competent Purchase Authority ( who has approved the
original contract award), not below the authorities mentioned above.

f. PEC to be held
(MM/112/2023 dated 30.11.2023
g. In case of variation of quantities during the execution of the contract for
executing the contracted scope of work and if unit rates for such items
are available in the contract, then such variation in quantity shall not be
considered as change order. Such variation of quantities will require
approval of concerned L-1.

h. These powers under change order procedure are applicable only in


LSTK contract including dry-docking for rigs/vessels and contracts
involving revamping and refurbishing of equipments/facilities. Variation
in quantities where items rates are available are applicable in other
cases.

i. All new / fresh works or any additional work not appearing in the scope
of work define in the contract shall be considered as positive change
orders.

j. In case during the project execution stage, it is established that a


negative change order is required due to deletion of scope of
work/change in design criterion/specification etc acceptable to company,
Change order procedure shall be followed. Payment schedule for change
orders shall be progressive and milestone based, which will be decided
mutually during the change order finalization However, for negative
change order, the cost benefit shall be recovered from the first available
invoice after finalization of the change order and the same being
conveyed to the contractor. In case of delay in the finalization of negative
change order after tentative cost estimate was agreed, company may
withhold the tentative cost estimate or the estimated cost by company,
whichever is higher, pending finalization.

k. In case proposed change order involves purchase of material (other than


OEM spares) then prior to finalizing purchase, the contractor should
provide at least 3 offers in respect of the material proposed to be
procured, for approval of ONGC. Such approval shall be conveyed to
the contractor based on the recommendations of PEC duly approved by
Competent Authority as per BDP. If less than 3 offers are provided,
adequate justification shall be given as to what are the reasons for the
same.

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19.3 Variation in Quantity

19.3.1 Variation in quantity of items / services

(MM/10/2016 dated 23.03.2016)


a. If the contract has been closed/executed, no change in quantity /
requirement is allowed.

b. – Deleted -

c. If item rates are available quantity variation upto 10% (increase or


decrease) is allowed without approvals. For any additional variation,
approval from the CPA (under whose powers the modified amount in the
contract will fall) will be needed.

d. If rates for the items are not available, no quantity variation will be allowed
and the change order procedure will be followed.

19.3.2 Variation in requirement due to change in scope / additional requirement, or


non availability of rates for quantity variation needs to follow the change order
process of cost estimation

19.3.3 Item Rate/Percentage Rate Contracts.

In the case of Item Rate/Percentage Rate tenders, the following procedures


will be adopted in the finalization of rates for change in item quantity in case
item rate are available

19.3.3.1 Variation in quantities of items, i.e. where there is increase or decrease


in the quantities of items in the contract.

a. Variation beyond ± 10% of the stipulated quantities of individual items in


the contract shall require the approval of CA.

b. The rates payable for the variations up to 25% in respect of individual


items in the contract shall be as per the contract rates.

c. The rates payable for variations in quantities in excess of 25% in respect


of individual items shall be worked out at market rates prevailing at the
time of commencement of execution of these items.

19.3.3.2 Extra /Substituted Items

a. Extra items of work are items, which are completely new and in addition
to the items in the contract. Substituted items are items which are taken
up in lieu of those already provided in the contract.

b. The powers to accord Technical sanction for extra and substituted items
shall be as per BDP. The officers while exercising these powers shall
obtain the Administrative approval from the authority who accorded
Technical sanction for the project. Where the excess is due to substituted

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items, the algebraic difference between the contract and substituted item
shall only be considered for the excess amount (for accord of TS).

c. The rates for the extra items shall be worked out at market rates prevailing
at the time of commencement of execution of these items. For each
additional item, multiple BQs can be used as a means to identify going
rate in case no rate for the item is available in the existing contract.

d. For substituted items, the contract rate of the original item will be adjusted
for the difference in market rates (prevailing at the time of commencement
of execution of these items) of original and substituted items.

19.4 Payment Schedule

19.4.1 The payment schedule for change orders will be linked to individual milestones
similar to the manner in which payments are made for normal contracts.

19.4.2 The payment schedule can only be made after the complete change order has
been approved and the negotiations on price for the change order have been
completed with the suppliers / contractors.

MM/90/2023 dated 06.06.2023


19.4.3 In case cumulative change orders value/ ceiling value cause the contract
valueto increase by more than 15% of original contract value, then
Performance Security should be obtained for higher amount within 15 days of
giving go-ahead to the Contractor for execution of the change order. However,
if the cumulative change orders value/ ceiling value cause the contract value
to increase upto 15% of original contract value, then further Performance
Security is not required to be taken.”

In case if a contractor does not submit additional PBG for the incremental
amount within 15 days of giving go-ahead notification by ONGC, ONGC would
withhold the equivalent amount of additional PBG to be submitted by the
contractor against the change order from any payments due to the contractor
against the subject contract and release the same after submission, verification
and acceptance of the additional PBG.

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20 Purchase Order Tracking Process
20.1 Purchase Order

20.1.1 Distribution of copies of purchase orders

The distribution of purchase order copies will be made as under:-

a. Firm (two copies - one copy has to be received back duly acknowledged
by the firm). These will be sent under registered forwarding letter.
Scanned copy of PO/contract shall be uploaded in SAP under documents
link of the PO/contract and the following offices shall be informed:

i) Ultimate Consignee (s)- For being ready to receive the material

ii) Port Consignee / T&S (for imported materials only).

iii) Materials Management (Stock) of ultimate consignee along with


approved samples, if any.

iv) Finance & Accounts Officer concerned

v) Indentor (Tech. Dept. concerned as well as Head when


requirements are consolidated at Headquarters) -For information
and for obtaining Essentiality Certificate and also to provide nexus
documents to EPCG Cell wherever applicable

vi) Quality Assurance Department

vii) EPCG cell, in case benefits under EPCG scheme are to be


availed.

viii) Standardization Group (in case of PO for Capital item)

20.2 Follow up of purchase orders


20.2.1 After the purchase order is issued, the MM department will follow up the order
so that supply is received in time to ultimate consignee.

(MM/04/2015 dated 28.04.2015)


20.2.2 - Para Deleted -

20.3 Other clauses for delivery

20.3.1 On completion of delivery/work, vendor rating will be assigned on the basis


of delivery performance for the contract, by the concerned Level-II Officer of
indenting department. This will be communicated to the vendor relationship
manager (category manager or MM person in charge).

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20.3.2 Wherever the contract is concluded on the basis of approved sample either for
quality or for shade or for makeup, the approved sample, duly signed and
stamped by concerned purchase officer, will be sent to concerned QA
Department along with relevant supply order. On the approved sample, supply
order number and date of firm’s name will be indicated by concerned purchase
department before sending the same to QA department. Date of sending
sample(s) to QA dept. will also be noted by Purchase dept.

20.3.3 The QA department will maintain record of samples indicating order number
and date, date of receipt of sample, party from whom the sample was received,
description of item, quality of sample, date of inspection and date of completion
of supplies.

20.3.4 Samples of unsuccessful bidders shall be returned after finalisation of the


tender provided the same is not consumed during testing.

20.4 Shipping order placement

(MM/132/2016 dated 13.04.2016)


(MM/92/2023 dated 07.06.2023)
20.4.1 For ICB/ LICB tenders, MM Department will directly place the orders on CFR
basis. In case the order is to be placed on CIF basis due to any reason,
insurance cover should be on warehouse to warehouse basis and should be
valid up to 90 days from the date of discharge of the cargo at port/airport. For
orders not on CIF basis, marine insurance of imported cargo and insurance
during the transit upto warehouse of ultimate consignee shall be arranged by
concerned T&S office of ONGC.

In case of Import of goods against single tenders from OEM/OES, PAC,


nomination basis, freight rates along with complete contact details of the
respective authorised freight forwarder of M/s. SCI and M/s. Balmer Lawrie &
Co. Ltd. for shipment from the respective port of shipment shall be obtained
from the authorised persons nominated by M/s Shipping Corporation of India
(as per Appendix-3 of Circular No. 20 dated 13.04.2016 as amended from time
to time) and M/s. Balmer Lawrie (as per Appendix-1 of Circular No.41/2023 as
amended from time to time) respectively through e-mail only. In case freight
charges quoted (through mail) by SCI and/or Balmer Lawrie are lower than the
freight quoted by the vendor, then order will be placed on FOB basis and
shipment shall be finalised through SCI or Balmer Lawrie whosoever has
quoted lowest freight charges. Otherwise, order will be placed on CFR basis.

SCI and Balmer Lawrie shall be given 7 days’ time to quote freight rates,
however workcentres may keep lesser/more time depending upon the case,
wherever required.

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20.4.2 When freight is finalised with SCI/Balmer Lawrie as the case may be, the
amount of freight payable with break up, if any, may be indicated separately
in PO along with SCI/Balmer Lawrie Ref. No. for correct and timely payment
of freight by T&S. Copy of correspondence made with SCI/ Balmer Lawrie will
be sent to T&S along with the PO.

20.4.3 In case of containerized cargo, 14 days detention free period by Shipping


company should be obtained and the same got endorsed on the Bill of Lading.

20.4.4 Upon receipt of Purchase Order and delivery schedule of material, Indentor
shall proactively arrange for documents like invoice etc. for application of
Essentiality Certificate and arrange to despatch the EC and import license(for
restricted items) to T&S office at least 3 days before arrival of shipment at port
of discharge.

20.4.5 Upon receipt of Purchase Order and related documents from Indentor, EPCG
cell shall promptly apply and obtain EPCG Licence and forward the same to
T&S at least 3 days before arrival of shipment at port of discharge.

a. Application to DGFT for issue of EPCG authorization shall be made for


capital goods where the value of the POs/Contracts is more than Rs.
25.00 lakhs and for spares if the value is more than Rs. 50 lakhs subject
to receipt of required documentations. Such benefits are applicable for
both Non PEL/ML areas and PEL/ML areas.

b. DFCE/Target plus certificate may be utilized for customs clearance of


POs/Contracts valued above Rs. 2.00 lakhs subject to required
documents till the Duty free Credit Certificate are available. However,
POs/LSTK contracts below Rs. 2.00 lakhs may be cleared under merit
rate of Customs Duty.

20.4.6 Delivery of the cargo is possible on presentation of original Negotiable Bill of


Lading. After shipment of goods, Purchase section shall co-ordinate with
supplier and Finance Wing for timely release of negotiable documents through
Bank and forwarding the same to T&S for obtaining delivery of the cargo.

20.4.7 PO must reflect all line items for delivery cost of material such as Material Cost,
Freight, Insurance, Custom duty, Port Charges and Handling charges. In
addition PO will contain contact details of indentor and port consignee.

20.5 Air freight

(MM/50/2019 dated 04.07.2019)

Sanction shall be obtained (at the time of PR creation) from concerned L-III
executive in consultation with attached Finance in following cases:

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i) The item of import is delicate in nature and ocean transportation may cause
damage to item in transport.

ii) The volumes / size of import are so small or the nature of the item is so
sensitive that air freighting would be more expedient or appropriate than ocean
freighting.

However, in case there is extreme urgency for the import of items in question
and the exigencies of the situation warrant air freighting, sanction for Air
freighting indicating the estimated amount of freight payable will be taken by
the user department from the concerned L-I executive in consultation with
attached Finance at the time of PR creation.

20.5.1 In case of Air Freighting following actions should be taken to expedite


clearance of material from customs to minimize demurrage

i. Indentor to expedite Essentiality Certificate at least three days before


arrival of materials.

ii. To expedite a set of shipping documents comprising copy Airway Bill,


invoice, Packing List to port consignee by the supplier or their Indian
Agent at least three days before arrival of materials. The necessary
provision to be made in supply order accordingly.

iii. MM dept. to send copy of purchase order to Port Consignee


immediately on its placement.
iv. MM dept. & Finance dept. to expedite Bank- Release Order to Port
Consignee on or before arrival of the material at airport for taking
immediately the delivery of consignment to avoid accumulation of
demurrage for want of it even after completion of all other customs
formalities.
v. Indentor to arrange and provide import license for restricted item before
arrival of the material.
vi. MM / indentor to convey approval for clearance of short shipped or
warranty replacement items before arrival at airport and advise the
suppliers to send advance set of documents like Airway bill, invoice &
packing list, three days before arrival to Port Consignee to facilitate
clearance of material. Essentiality Certificate or duty on merit approval
is also to be forwarded or intimated to T&S office in advance i.e. before
arrival of cargo to avoid delay & demurrage.
vii. The material air freighted from abroad should further be air lifted to
ultimate consignee / nearby air base. Therefore, all concerned will
ensure that in case of air freighting of material from abroad, approval of
CA is invariably obtained and necessary provisions made in supply
order in future for air freighting of material from port consignee to
ultimate consignee/nearby air base of ultimate consignee.

(MM/34/2018 dated 22.05.2018)

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20.5.2 In case of ICB/LICB tenders for procurement of Perforation material, the
order shall be placed directly on CFR basis. For the cases, where such
material form only a part of consignment, a separate order shall be placed
for them. In case the order is to be placed on CIF basis due to any reason,
insurance cover should be on warehouse to warehouse basis and should
be valid up to 90 days from the date of discharge of the cargo at airport.
For orders not on CIF basis, marine insurance of imported cargo and
insurance during the transit upto warehouse of ultimate consignee shall
be arranged by concerned T&S office of ONGC.

Note common for 20.4 and 20.5

(i) All purchase orders should invariably contain address(es) and fax
number(s) of the port consignee(s)-T&S, ONGC with condition on main
body of PO that “The supplier must ensure incorporation of the
address(es) and fax number(s) of the port consignee(s)-T&S, ONGC in
the Air Way Bill itself.

(ii) Unless the hazardous / dangerous goods are declared and packed
separately, higher freight rate is charged treating the whole materials
as Hazardous / Dangerous. Hence, to avoid payment of excess freight
and resultant excess customs duty on this excess freight rate, clear
instructions should be inserted in the main body of the supply order
advising the supplier to pack DGR goods and general cargo separately
and declare them accordingly.

(MM/34/2018 dated 22.05.2018)

(iii) Except for provisions at 20.5.7, It should be ensured by incorporating


PO conditions that the consignment(s) requiring air-freighting are
invariably moved through the Air Consolidation Agent.

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21 Inspection Process

21.1 Inspection

21.1.1 Quality / Inspection will be carried out whenever a request is raised.

21.1.2 In case of goods, this may be raised by the vendor / supplier, once the delivery
batch has been manufactured / assembled.

21.1.3 In case of LSTK, this may be raised as per the quality assurance plan which is
detailed in the technical bid.

21.2 Inspection Agency

(MM/27/2017 dated 21.06.2017)


(MM/109/2023 dated 30.10.2023)
21.2.1 Quality inspection can be carried out by internal agencies (QAD – ONGC/ONGC
personnel) or by external TPI agencies.

Subject to provisions under para 21.2.10 and 21.2.11, in all contracts/PO


awarded against ICB/LICB tenders for procurement of goods, services
(including charter hire of rigs) and LSTK contracts inspection may be got done
through reputed TPI agency. Reputed TPI agency shall be engaged, paid and
nominated by ONGC for carrying out inspection at the premises of the
supplier/contractor prior to dispatch of material.

Inspection by TPI in all cases pertaining to procurement of services may not be


necessary at the premises of the contractor. Only, In specific cases certification
/ inspection by TPI may be required at the premises of the contractor.

Hence, in cases pertaining to hiring of services (including charter hire of rigs


and vessels etc.) depending upon the need of the case, prior to invitation of
tender, indenter with justifications shall intimate to the tender processing group
that inspection of a particular item/activity by TPI shall be necessary at the
premises of the contractor. Inspection / certifications agency then shall be
engaged by the tender processing group.

Bidder shall be provided with copy of standardised format of inspection report.


Duly filled in copy of the same shall be submitted by the supplier/contractor
along with shipping / dispatch documents.

However, if it is considered essential to depute ONGC’s personnel for


inspection, prior approval from concerned L-1 must be obtained by the
concerned work centre before floating the tender giving detailed reasons
thereof.

In case of contact / order against Indigenous tender on Domestic bidder,


inspection shall be carried out through QAD/in-house agencies as per para 21.1.
However, in case QAD conveys that they do not have the requisite capability to

233
undertake inspection, TPI agency shall be engaged with the approval of
concerned L-1 executive. Name of agency for sending Inspection call shall be
accordingly indicated in the PO.

21.2.2 Following procedure shall be followed for empanelment of TPI agency for
nominating TPI agency for carrying out inspections:

(a) Corporate MM shall engage TPI agencies for TPI of goods being procured
through ICB/LICB tenders only.

For TPI of LSTK contracts and equipments being hired against service
contracts excluding drilling rigs awarded against ICB/LICB/Domestic
tenders, Onshore Engineering Services, shall empanel TPI agencies for
tenders being processed by Onshore Work Centres.

For TPI of LSTK contracts and equipments being hired against service
contracts excluding drilling rigs awarded against ICB/LICB/Domestic
tenders, Offshore Engineering Services, shall empanel TPI agencies for
tenders processed by Offshore Work Centres including Uran & Hazira
Plant.

For hiring of Offshore drilling rigs, TPI agencies shall be hired by Drilling
Services, MR and for Onshore Drilling and Workover rigs, TPI agencies
shall be hired by Corporate MM.

(MM/31/2018 dated 13.03.2018)


(MM/124/2024 dated 16.04.2024)
(b) TPI agencies shall be empanelled through sending notice of empanelment
to all the known TPI agencies and through publication of NIT in GePNIC-
CPPP “https://etenders.gov.in” (for e-bid). The validity of empanelment of
TPI agencies shall be three years, however the NIT for engaging the TPI
agencies shall be issued every year so that new TPI agencies could apply
for empanelment in ONGC.

(c) ONGC's tender document containing commercial terms and conditions


including Integrity Pact and major scope of work for empanelment and
inspection shall be uploaded on ONGC’s tender website. The agencies shall
be asked to download the same and submit their response accordingly.

(d) No EMD shall be required for empanelment of the TPI agencies.

(e) Basis for empanelment of agencies shall be the BEC and other tendered
conditions.

(f) List of empanelled TPI agencies along with detailed contract conditions shall
be uploaded on the MM website for information of work centers and inviting
limited tender from empanelled agencies.

(g) Scope of work for TPI, specification of item, supplier's QAP, details of
supplier, manufacturing schedule, price format and any other tender related

234
relevant information for TPI Job shall be conveyed against specific limited
tender enquiry to all empanelled agencies.

(h) While inviting rates, depending upon the case specific requirement, work
centres may convey special technical conditions to empanelled agencies.

(i) For all items ordered against a tender on a single bidder, only one TPI
agency shall be appointed. Accordingly tenders for TPI inspection shall have
group wise evaluation, wherein all TPI jobs for supplies from one supplier
against one procurement tender shall form one group.

(j) The bid security requirement shall be exempted for all limited tenders to be
invited from the panel of empanelled TPI agencies.

(k) Scope of work, scope of TPI, Quality Assurance Plan (QAP) and other
tender related relevant information for TPI Job will be provided by technical
department to tender processing department.

(l) Giving reference of the contract entered into by Corporate MM/ Onshore &
Offshore Engineering Services, the above information will be sent to
empanelled agencies by tender processing department. The empanelled
agencies will be given 10 days’ time to quote.
(MM/116/2023 dated 27.12.2023)
(m) Since bids shall be invited from empanelled firms, there is no technical
qualification documents required to be submitted by bidders. Bidders shall
be asked only to confirm acceptance to scope of work for specific jobs and
quote their prices accordingly.

(n) In view of above, Two Bid System would not be relevant for awarding TPI
jobs against limited tenders.

(o) Giving reference of the contract entered into by Corporate MM/ Onshore &
Offshore Engineering Services, TPI agencies shall be asked to quote their
rate and service tax separately as per the sample price format for the
specific TPI job against scope of work for the Contract/purchase order.

(p) PBG shall be obtained by the respective work centers from the successful
TPI agency.

(q) The Payment to TPI shall be made by the work center as per empanelment
conditions.

21.2.3 Except for the situation under para 21.6.2, TPI provisions shall not be applicable
to contract for purchase of chemicals wherein procedure for sampling / bonding
and lab testing is continuing.

(MM/109/2023 dated 30.10.2023)


21.2.3.1. In addition to provisions under 21.2.1 (paragraph-2) wherever departure from
the procedure of TPI is considered essential, specific approval of concerned
L-1 should be obtained prior to floating the tender.

235
21.2.4 The scope of inspection should be elaborated & relevant standard of testing
should also mentioned as applicable. This will help the vendors plan for the
inspection / quality processes and build the cost of quality or inspection in their
bid.

21.2.5 The responsibility for the overall quality management will be with the project
manager in case of LSTK projects, which shall be ensured by the TPI agency
(or as detailed in the bid).

(MM/91/2023 dated 06.06.2023)


21.2.6 For inspection of fire fighting equipment, fire fighting chemicals and other
specialized items, joint inspection by user group and QAD will be conducted.

(MM/27/2017 dated 21.06.2017)


21.2.7 The quality assurance department will not carry out inspection of material after
arrival in the warehouse which has already been inspected by TPI. However,
ONGC would have the right to inspect/ test the material at destination.

The quality assurance department will not carry out inspection for the following
items

a. All chemicals (except firefighting chemicals) including mud chemicals, oil


well cement, paints and gases.

b. P.O.L.

c. Building materials including cement and timber.

d. Seismic explosives and detonators.

e. Cleaning agents, hand gloves, cotton waste.

f. Printed stationery.

g. Wooden planks and coal.

21.2.8 The above items (a) to (g) except (d) shall be inspected by concerned Indentor.

21.2.9 Item at Sl. No. (d) shall be inspected by an official of Indenting department,
who is authorized / licensed to handle explosives, by visually checking the
items w.r.t verification of quantity (nos.), weight, visual defects, batch nos. etc.,
and also subject to obtaining an undertaking from supplier to the effect that in
case the field performance of such visually inspected items is not satisfactory,
the same shall be replaced by the manufacturer at his cost.

21.2.10 For LSTK projects, all works costing above Rs. 1 crore should be subject to
TPI so as to ensure compliance with specifications. TPI may be empanelled
and should be used for this purpose.

236
(MM/27/2017 dated 21.06.2017)
21.2.10.1. In case of Offshore / Onshore projects where inspection is envisaged
through TPI agency, following guidelines should be followed:

i. TPI at Onshore / CA at Offshore to carry out equipment inspection at vendor


works. TPI at Onshore / TPI and CA at offshore shall carry out inspection
during site construction and commissioning.

ii. The inspection test plan for equipment and QA/QC plan for the project
proposed by Contractor to be reviewed by TPI at Onshore / TPI and CA at
Offshore. These will be approved by Design Consultant (either in-house or
outside DEC) for the project.

iii. ONGC representatives may be associated in addition to TPI for Onshore


Projects / TPI and CA for Offshore Projects for carrying out inspection of
critical equipment at vendor works/fabrication yards and critical site activities
for the purpose of project monitoring and control.

iv. During Factory acceptance test (FAT) of critical equipment, ONGC


representative may be associated in addition to TPI at Onshore / CA at
Offshore for witnessing the test.

v. Quality Audit shall be performed for all Onshore Projects as per practice
being followed by Offshore Engineering Services. Quality Audit Team
consisting of personnel from Offshore / Onshore Works, Design Consultant
and respective Assets may be constituted by Chief of Onshore / Offshore
Engineering Services. Periodicity of such Audit shall be once in three
months.

vi. In case of major observation on deficiency in quality, business dealings with


concerned TPI agency shall be suspended pending enquiry into the matter.
In case after completion of enquiry it is established that the concerned
agency, performed inspection in deficient manner and not in accordance with
the ONGC requirement, business dealings with that TPI agency shall be
banned for a period of two years from the date of issuance of suspension
orders. The suspension/banning process against the TPI agency shall be
initiated as per existing provisions.

(MM/109/2023 dated 30.10.2023)


vii. For incorporating contract conditions for associating ONGC representative
as per (iii) and / or (iv) above involving activities by ONGC representative
within India/abroad, approval of concerned L-1 shall be obtained before
floating the tender.

21.2.11 For works / projects costing below Rs. 1 crore, the inspection may be carried
out either by user group / Indentor. However, in such cases, if it is essential

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to carry out inspection through TPI, before floating tender approval of
concerned L-1 shall be obtained giving valid and justified reasons.

21.2.12 In case of manufacture of critical items ordered against ICB/LICB tender, if


required, condition may be incorporated in the purchase order that TPI
agency may be engaged for inspection during or after completion of each
pre-specified stage. In case of Domestic tenders, similar condition may be
incorporated in the PO that QAD may carry out inspection during or after
completion of each pre-specified stage.

For cases involving deputation of ONGC representative abroad along with


TPI for joint inspection, approval of concerned L-1 shall be obtained before
floating the tender.

(MM/69/2021 dated 20.08.2021)


21.2.13
(a) Wherever inspection by TPI agency is involved, TPI agency will provide
scanned copy of physically signed final inspection report alongwith Inspection
release note to Indentor, whose contact details should be provided to TPI
agency while engaging them for an inspection. Warranty & Guarantee
Certificate alongwith any other document required as per purchase order
provisions/QAP/Scope of Inspection shall be obtained by TPI agency from the
supplier/contractor and these documents shall form part of TPI report. TPI
agency shall provide the same to ONGC.

Indentor will review from TPI report that Inspection has been carried out as per
QAP/Scope of Inspection.

In case of any discrepancy, the same will be conveyed to the TPI agency within
2 days from the date of receipt of TPI report for making the same good and
thereafter TPI agency shall immediately send the modified inspection report to
ONGC. Based on the final acceptable Inspection report (scanned copy of
physically signed report) received from the TPI agency, the Indentor shall
release QCC through system within 3 working days. Digitally signed QCC
certificate issued by ONGC shall be sent to the TPI agency. However,
responsibility of carrying out the inspection as per the scope of
insperction/QAP/Purchase order provisions will be that of TPI agency. TPI
agency will hand over TPI report along with digitally signed QCC certificate
issued by ONGC to the Supplier. Above provisions shall be made part of TPI /
QAD scope.

Cases where TPI is not involved and inspection is done by Inspection authority
( QAD/Indentor), inspection report(QCC ) shall be issued by Inspection
Authority only after receipt of acceptable Warranty/Guarantee
Certificatealongwith any other document required as per purchase order
provisions/QAP/Scope of Inspection from the supplier/contractor.

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However, In import of goods involving LC payment where source inspection
by QAD/TPI/Indentor is not involved (e.g. OEM spares),), QCC Certificate by
ONGC will not form part of payment documents but Warranty/Guarantee
Certificate and Certificate of test/ inspection from manufacturer’ shall be part
of negotiable documents.

TPI report (wherever applicable), warranty certificate alongwith any other


document required as per purchase order provisions/QAP/Scope of Inspection
will be uploaded under QCC certificate in SAP system by Indentor/QAD, as
the case may be.

In case Regional Chemical Lab (RCL) is raising QCC in the system, they shall
also comply above provisions.

(b) Warranty & Guarantee Certificate, alongwith any other document required as
per purchase order provisions/QAP/Scope of Inspection shall be obtained
from supplier/contractor by the inspection authority(e.g. QAD/Indenter/TPI)
during inspection (final inspection wherever stage wise inspection is involved),
it shall be made part of TPI / QAD scope.

(c) For delay by TPI agency in submitting TPI report to ONGC, deterrent provision
in TPI contract shall be incorporated i.e. a warning shall be issued to such TPI
agency by dealing officer of the procurement case.

21.3 Inspection of materials

21.3.1 Petty purchases costing upto Rs.25,000 will be accepted after inspection by
end user / indentor.

21.3.2 For chemicals / spares, inspection for orders of all values should be carried
out as per the requirement mentioned in their chapters.

21.3.3 For inspection of items costing above Rs.25,000, the QAD / TPI will be
responsible (as mentioned in the order / contract)

21.4 Inspection Process

21.4.1 All steps must be taken to commence inspection within 3 working days
after the receipt of the intimation from the Materials Section/supplier for
items to be inspected locally and within 10 working days if the materials to
be inspected are located out of station. Reasons for delay in the inspection
beyond this period should invariably be reported to the Head of concerned
Materials Management, Head of Quality Assurance Department and
concerned key executive. Inspection report (or, Intimation in respect of
rejection of material) should be sent to supplier by the inspecting authority
within 4 working days after completion of inspection / receipt of relevant test
reports (if any), under intimation to concerned sections (including purchaser,
Indentor, consignee and payment authority).

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21.4.2 In the case of imported stores and spares manufactured abroad by
reputed manufacturers and accompanied by the manufacturer's warranty,
stores may be accepted after random sampling / visual inspection by QAD
after inspecting physical condition and quality.

21.4.3 In case where cost of inspection is not commensurate with the value of the
stores, inspection may be carried out at destination with the approval of
competent purchase authority.

21.4.4 All the cases / packages are to be opened in the presence of Inspecting
Officer.

21.5 Inspection and rejection of Materials by Consignee(s)


(MM/47/2019 dated 31.01.2019)
(MM/83/2023 dated 23.01.2023)
21.5.1 When materials are rejected by the consignee, the Materials Management
Officer concerned will intimate to the contractor the details of such rejected
stores, as well as the reasons for their rejection and that the materials are
lying in the consignee's premises at the risk and cost of the contractor. He
will also call upon him either to remove the materials or to give instructions
as to their disposal within 14 days and in the case of dangerous, infested
and perishable stores within 48 hours, failing which the consignee will either
return the materials to the contractor freight to pay or otherwise dispose
them of at the contractor's risk and cost. The Materials Management Officer
will also intimate to the Finance and Accounts Officer concerned the quantity
of the materials rejected to enable him to recover the freight due at the full
public tariff rates from the contractor. The purchaser shall also be entitled to
recover handling and storage charges for the period, during which the
rejected stores are not removed @ 5% of the value of materials for each
month or part of a month till the rejected materials are finally disposed off.

In case of Chemicals para no, 21.7.1(ii) and (iii) shall be applicable.

(MM/47/2019 dated 31.01.2019)


(MM/83/2023 dated 23.01.2023)

21.6 Procurement and inspection of oil field chemicals.

(i) In the case of low quantity and low value chemicals, proprietary chemicals and
new chemicals for which standardized specifications have not been
formulated, the User/Indentor at the concerned work centre
(Asset/Basin/Plant/Institute/ Services) can formulate the specifications
including the modalities of testing and also the packing and marking details in
consultation with Chief Labs and get the same approved by the concerned
Level-I executive of the work centre (Asset/Basin/Plant /Institute/ Services)
before forwarding it to Material Management Dept. along with the indent for
taking procurement action.

(ii) Procurement method to be followed for chemicals will be the same.

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For procurement of chemicals, submission of test report along with bid shall
not be required / mandatory. However, in respect of performance chemicals,
in case a bidder wishes to get their material tested in ONGC lab on
payment basis before submission of their offer, then such facility on
payment basis shall be available.

(iii) Laboratories of repute in the country for testing of chemicals required by


ONGC will be inspected and those found upto the mark approved by the
authority (ies) so decided from time to time for this purpose by Director (T&FS)
in consultation with Director (Exploration) for different chemical(s) / group(s)
of chemicals. Capacity and capability of laboratories before empanelment will
invariably be verified. Test reports of the samples not found up to the mark will
be notified to the concerned manufacturer / their authorised dealers so as to
enable them to improve their products.

(iv) Payment and Delivery and Tracking process will be the same as indicated in
the section on payment procedure

(v) For procurement of chemicals from indigenous sources, in order to ensure


that single point responsibility is vested with the vendor till delivery of
material to ONGC, the placement of order shall be done on FOR destination
basis ONLY (Not on Ex-works basis plus transportation through AITMT
contract)

Applicable in the case of Chemicals procured from indigenous sources,


where Source Sampling, Bonding, testing is involved:

For LD purpose, date of offering the material for Sampling / Bonding shall be
considered as date of delivery, if the sample drawn passes in the lab test. If
the sample fails in the lab test, fresh date of offering of material for sampling /
bonding for which the sample passes in the lab test, shall be considered as
date of delivery.

21.6.1 Sampling procedure will be as per the requirement of the Inspection Authority. This
should however be shared upfront at the time of tendering.

21.6.2 In all cases where chemicals are to be imported sampling, bonding, testing, de-
bonding and supervision of dispatch of Chemicals shall be carried out through a TPI
agency, which shall be engaged/hired and paid by ONGC.

TPI agencies for testing of Chemicals shall be empanelled centrally by corporate


MM. The quotation from such empanelled TPI agencies shall be sought on case to
case basis by the concerned section as per provisions under para 21.2.2.

A sampling and testing plan (QAP) to be followed by TPI agency should be


worked out for every item and same should be incorporated in the tender
document / purchase order placed on a chemical vendor. Like-wise, the work
order on TPI agency should categorically indicate the QAP, the detailed scope
of TPI and the deliverables required from them.

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21.7 Sampling, bonding, testing, de-bonding and dispatch of bulk chemicals

21.7.1(i) For imported Supplies:

A TPI agency shall be deputed for sampling, bonding, testing & issuance of test
report, de-bonding of chemical if the same passes in lab test and supervision of
dispatch of chemicals at supplier’s end, which shall be engaged/hired and paid by
ONGC.

TPI agency will be accountable for proper quality check as well as bonding/de-
bonding and supervision of dispatch of chemicals.

In order to ensure dispatch of material by the supplier in the presence of TPI agency
deputed abroad for sampling, bonding, testing & issuance of test report, de-bonding
and dispatch of chemicals, suitable provisions will be made in supply order that the
supplier shall dispatch material in the presence of the TPI agency deputed for
sampling, bonding, testing & issuance of test report, de-bonding and supervision of
dispatch of chemicals and the supplier should ensure availability of containers before
sending inspection call to ONGC, enabling sealing of containers for dispatch in the
presence of TPI agency deputed by ONGC.

The TPI agency will ensure that supply of chemicals is in manufacturer's original
packing as specified in the supply order. Each bag / drum of the product should bear
mark of the manufacturer, name of the chemical, Lot No, Batch No., date of
manufacture and Supply order No.

Testing of the samples will be carried out in the manufacturer’s test labs. It should be
ensured by purchaser that the TPI for the required purposes is deputed within 15 days
of receiving notification from supplier. All delays must be brought to the notice of L-1
for expediting the same.

Note : Till the time exercise for empanelment of TPI agencies is completed, the
following prevailing practice as contained in the following provisions shall continue

A Chemist shall be deputed abroad for sampling, bonding, testing, de-bonding and
dispatch of chemicals at supplier’s end only if the lot value in a PO exceeds US$ 1
million; the chemist will be accountable for proper quality check as well as bonding.

For despatch of material by the supplier in the presence of team of officers deputed
abroad for inspection, testing and bonding, each case will be decided on merit after
taking into consideration the position of availability of ships etc.

In order to ensure despatch of material by the supplier in the presence of ONGC’s


representative deputed abroad for sampling, bonding, testing, de-bonding and
dispatch of chemicals, suitable provisions will be made in supply order reserving
ONGC's right to ask the supplier to despatch material in the presence of the
representative of ONGC deputed abroad for sampling, bonding, testing, de-bonding
and dispatch of chemicals and the supplier should ensure availability of containers
before sending inspection call to ONGC, enabling sealing of containers for dispatch
in the presence of ONGC’s representative(s).

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For the supplies where the lot value in a PO less than US$ 1 million, supplier shall
be asked to provide satisfactory manufacturer test certificate

However, the supplies will be tested and inspected on receipt before taking the
material on charge. This process will not take a period of more than 30 days. No
Chemist for sampling and bonding in these cases will be detailed. However, the
supplier will be asked to give a certificate to the effect that the product in question has
been tested by the ONGC approved laboratory. Each packing will bear mark of the
manufacturer as well as name of the Chemical, Lot No. / Batch No., Date of
manufacture and supply order number.

In cases where ONGC Chemist is required to be deputed abroad for sampling,


bonding, testing, de-bonding and dispatch of chemicals, all necessary formalities such
selection of Chemist to be deputed, obtaining necessary approvals etc. should be
completed well in advance, so that the chemists are deputed within 21 days from the
date of receipt of inspection call from the foreign suppliers.

(MM/67/2021 dated 28.07.2021)


(MM/83/2023 dated 23.01.2023)
(MM/91/2023 dated 06.06.2023)
(MM//96/2023 dated 31.07.2023)
21.7.1(ii) Destination Sampling and testing of chemicals procured from Indigenous
sources.

Destination sampling and testing shall be carried for all the chemicals procured from
indigenous sources (whether against NCB or ICB or any other type of tenders, including those
centrally procured by Corporate MM), except Chemicals listed at para 21.7.1(iii) and Fire
Fighting Chemicals.
.

In above type of cases, provisions shall be incorporated that each packing will bear
mark of the manufacturer as well as name of the Chemical, Lot No. / Batch No., Date
of manufacture and supply order number. The supplies will be tested and inspected
on receipt before taking the material on charge by ONGC. Samples shall be drawn
jointly by a team consisting of Chemist and In-charge warehouse (or
his authorized representative of minimum E0 level) from ONGC. Supplier shall depute
its representative at its own cost for witnessing sampling of chemicals at destination,
for which an intimation shall be given by ONGC to the supplier. However, in case
supplier do not depute its representative within time specified in intimation, ONGC
shall carry out sampling without presence of supplier’s representative.

Further, in case material is not found conforming to the specification, the supplier shall
lift the material within two weeks from the date of intimation at supplier’s cost. In case
the material is not lifted by the supplier within two weeks, ONGC may decide to return
rejected material to supplier on freight to pay basis at risk and cost of the supplier.
Further, Supplier will replace the material at its cost within delivery schedule, failing
which provision of “Failure and Termination Clause/ Liquidated Damages Clause”
of Tender document will be applicable. Supplier shall provide an undertaking to this
effect along with bid.

In order to ensure that payment to the supplier is not delayed and the consumption of
the chemicals begins at the earliest, the process of sampling and testing at destination

243
shall be completed within 16 days of the arrival of chemicals at destination as per
SOP. For cases where time in excess to 16 days is envisaged approval of Chief Labs
shall be obtained with proper justifications.

No Chemist for sampling and bonding in these cases will be deputed at firm’s
premises.

Total Five bulk samples will be drawn during sampling / bonding. The bulk samples
taken at destination will have the seal and signatures of the party and ONGC (both
Chemist and I/c warehouse (or his authorized representative of minimum E0
level)). However, in case supplier do not depute its representative within time
specified in intimation by ONGC regarding sampling, ONGC shall carry out sampling
without presence of supplier’s representative and such bulk samples shall bear seal
of ONGC only with signatures of both the Chemist and I/c warehouse (or his
authorized representative of minimum E0 level).

Two (2) samples will be sent to lab for test, one (01) sample will be given to supplier,
one (01) sample will be retained with Chemistry Dept. and the fifth one (01) will be
kept with I/c warehouse. Chemistry Dept. Shall forward the samples directly to the
laboratory and send intimation to the Purchase Dept. regarding forwarding of samples
to the laboratory for testing.

While taking out Samples from the warehouse, entry in this regard shall be made in
the register available with Security (who will put security stamp on the samples) at the
Warehouse.

In all cases where sample has passed the test and there is no dispute, the sample
will be destroyed after six months from the date of receipt of corresponding bulk
consignment at the Project. In case of any dispute, these samples shall be retained
till resolution of said dispute. Destruction / non-destruction of such samples shall not
override the supplier’s obligations under warranty / shelf life or any other supply order
conditions.

Standard Operating Procedure (SOP) for the destination inspection i.e. sampling &
testing of Chemicals and payment thereof along with roles, responsibilities and the
timelines for completion of respective activities including payment has been enclosed
at Appendix 17.

Note:
In case of centrally procured chemicals from indigenous sources wherein delivery to
multiple consignee is involved, it shall be stipulated in tender conditions and PO that
material delivered to each consignee would be considered as an independent and
separate lot and there shall be no linkage with material delivered to another
consignee. Further bulk sample test result of a consignee would be treated as unique
and distinct and same shall not be referenced to or compared with bulk sample test
result of another consignee.

21.7.1.(iii) Source Sampling, Bonding, De-Bonding and Testing of Chemicals procured


from Indigenous sources.

1. Source Sampling, Bonding, De-Bonding and testing of chemicals procured from


Indigenous sources will be carried out for following items (whether against NCB or

244
ICB or any other type of tenders, including those centrally procured by Corporate MM)
and their testing will be carried out at the designated lab mentioned against them:

Sl. Name of Chemical Designated ONGC Lab (RGL / IDT) for testing
No.
Category ‘A’ item
1. Barytes Chennai
2. Bentonite Vadodara
3. Resinated Lignite Vadodara
4. Chrome Lignite Vadodara
5. Limestone Powder Sivasagar/Panvel/Vadodara/Chennai/IDT/Rajahmundry *
6. Calcium Carbonate Sivasagar/Panvel /IDT *
(Micronised)
*
7. Potassium Chloride Vadodara/Panvel/IDT

Other than Category ‘A’ item (used in EOR schemes which are purchased in
bulk)

8. Alkali Soda Ash Vadodara


9. Surfactants Vadodara

In case of emergent stock issues, if it is difficult to approach designated RGL located


at distant place, for testing, in such cases nearest RGL can also be approached for
testing.

(MM/113/2023 dt. 08.12.2023)


* In respect to items at Sl 5,6,7 of above table, at the time of placement of the order
depending on the consignees and the quantities, one lab out of the RGL’s/IDT shall
be proposed by Dealing Officer/ PEC and approved by CPA.

2. A TPI agency shall be deputed for sampling, bonding of above Chemicals and if
same passes in Lab test, debonding of Chemical and supervision for dispatch of
chemicals at supplier’s end shall also be done by TPI agency, which shall be
engaged/hired and paid by ONGC.

TPI agencies shall be empanelled centrally by Corporate MM.

Testing of the samples will be carried out in the designated ONGC labs. It shall be
ensured by concerned Chemistry Department and purchaser that after the call for
sampling/bonding is given by Supplier, the TPI agency shall be deputed within 7
Calendar days. Similarly, after the sample passes the Lab test, TPI shall be deputed
within 7 Calendar days for debonding & dispatch of the material.
Note: Till the time exercise for empanelment of TPI agencies for source inspection of
chemicals procured from Indigenous sources is completed, the prevailing practice of
destination inspection shall be continued. However, testing shall be carried out in
designated ONGC Labs as brought out in para 21.7.1(iii) -1 above for items mentioned
therein.

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3. A sampling, Bonding, De-bonding and supervision of Dispatch Plan /Process to be
followed by TPI agency should be worked out for every item and same should be
incorporated in the tender document / purchase order placed on a chemical vendor.

The work order on TPI agency should categorically indicate the detailed scope of TPI
and the deliverables required from them.

4. Total Four bulk samples will be drawn during sampling / bonding. The bulk
samples taken at Source will have the seal and signatures of the party and
authorised representative of TPI agency.

Two (2) samples will be sent to lab for test, one (01) sample will be given to supplier,
one (01) sample will be given to Chemistry Dept. by TPI Agency.

TPI Agency shall forward the samples directly to the ONGC designated laboratory,
ONGC Chemistry Department, as specified in the Purchase Order and also send
intimation to the Purchase Dept. regarding forwarding of samples to the laboratory
for testing and other authorities as mentioned above.

In all cases where sample has passed the test and there is no dispute, the sample
will be destroyed after six months from the date of receipt of corresponding bulk
consignment at the Project. In case of any dispute, these samples shall be retained
till resolution of said dispute. Destruction / non-destruction of such samples shall not
override the supplier’s obligations under warranty / shelf life or any other supply order
conditions.

5. TPI agency will be responsible for proper sampling, bonding of Chemicals, safe
dispatch of the samples to designated ONGC Labs, and if sample passes in Lab test,
debonding of chemicals and TPI agency shall also supervise dispatch of Chemicals
at supplier’s end.
In order to ensure dispatch of material by the supplier in the presence of TPI agency
deputed for sampling, bonding, de-bonding and supervision of dispatch of chemicals,
suitable provisions will be made in supply order that the supplier shall dispatch
material in the presence of the TPI agency deputed for sampling, bonding, de-bonding
and supervision of dispatch of chemicals.
After de-bonding, the dispatch shall be done by the Supplier in the presence of the
TPI agency and the time limit from de-bonding, during which the materials shall be
dispatched by the supplier after the sample has passed in the Lab test, shall be clearly
mentioned in the tender itself depending on the Lot size, mode of transport and type
of chemical etc.

The supplier should ensure availability of requisite transport after passing of sample
in lab test and arrange for debonding /dispatch of materials in the presence of TPI
agency deputed by ONGC.

6. The TPI agency will ensure that supply of chemicals is in manufacturer's original
packing as specified in the supply order. Each bag / drum of the product should bear
mark of the manufacturer, name of the chemical, Lot No, Batch No., date of
manufacture and Supply order No.

7. Testing of the samples will be carried out in the designated ONGC Labs.

246
8. No Chemist for sampling and bonding in these cases will be deputed at firm’s
premises.

Note (Applicable to both 21.7.1(ii) and 21.7.1(iii)):


In cases of source/destination sampling, where samples have been collected by an
ONGC official, same official shall not be deputed for testing of such samples.
Similarly, in case of material inspected at source, official deputed for sampling at
source shall not be deputed for sampling of same lot at destination, if so required.

MM/91/2023 dated 06.06.2023


21.7.1.(iv) Sampling, bonding, testing and de-bonding of indigenous sourced Fire
Fighting Chemicals.

(i) In all cases for procurement of indigenously sourced Fire Fighting


Chemicals, sampling, bonding, de-bonding of Fire Fighting Chemicals shall be
carried out at firm’s premises by an Inspecting Authority comprising of
representative from QAD & Fire Services (Indenting Section).
(ii) Inspecting authority will ensure that supply of Fire Fighting Chemicals is in
manufacturer's original packing as specified in the Purchase Order. Each bag /
drum of the product should bear mark of the manufacturer, name of the chemical,
Lot No, Batch No., date of manufacture and Purchase order No.. Testing of the
samples will be carried out in the Testing Laboratory specified by Corporate Fire
Services. It should be ensured by the purchaser that the Inspecting Authority for
the required purposes is deputed within 15 days of receiving notification from
supplier. Supplier shall offer the entire material in a single lot only and the quantity
required for sampling shall be indicated in Technical Specifications.
(iii) Samples shall be drawn by Inspecting Authority in presence of Manufacturer’s
and/or supplier’s representative. Scale of sampling shall be as per ONGC’s
Technical Specifications. After drawl of samples from the lot, all consignment
shall be bonded properly with seal and signature by the Inspecting Authority.
(iv) In case manufacturer is not a supplier, then the supplier shall depute its
representative at its own cost for witnessing sampling of chemicals at
manufacturer’s premises, for which an intimation shall be given by ONGC to the
supplier. However, in case supplier does not depute its representative within
specified time, the Inspecting Authority shall carry out sampling in presence of
manufacturer’s representative.
(v) Total Four (04) bulk samples as per specifications will be drawn during sampling.
The bulk samples shall have the seal and signatures of the manufacturer, supplier
(in case manufacturer is not a supplier) and Inspecting Authority. However, in
case supplier does not depute its representative within specified time, then bulk
samples shall bear seal and signatures of Inspecting Authority & manufacturer
only. Two (02) sealed samples will be sent to designated lab for test, one (01) will
be kept with Inspecting Authority and another one will remain with the
manufacturer/supplier. Inspecting Authority shall forward the samples directly to

247
the testing laboratory and send the intimation to the Order Placing Authority
regarding forwarding of samples for testing to the Laboratory. Inspecting
Authority will prepare and forward sampling report alongwith the samples to the
Testing lab.
(vi) Inspecting Authority will witness the Fire Performance Test as per approved QAP
& Technical specifications at Testing Laboratory. Inspecting Authority will issue
QCC on the basis of lab test report (in both the case whether the samples passed
or failed).
(vii) Based on the satisfactory test report and issue of QCC by Inspection Authority,
the representative of Fire Services will undertake the process for de-bonding of
material at firm premises for dispatch to concerned work centres. The
representative of Fire Services will provide prior intimation to supplier, Order
Placing Authority and Corp. Fire Services regarding date for de-bonding.
(viii) Charges for testing and transportation of samples to Testing Lab as well as to
the work centre will be borne by ONGC. Location of work centres where samples
are to be sent, will be decided by Inspecting authority.
(ix) Decision of the Inspecting Authority regarding acceptance/rejection of materials
shall be considered final and binding on the supplier.
(x) Material should be packed and marked in accordance with requirements defined
in the Technical Specifications.
(xi) In case material is not found conforming to ONGC Technical specifications, the
supplier shall re-offer the material at supplier’s cost within four weeks from the
date of intimation about rejection of sample. In such case, process as mentioned
above for sampling, bonding, testing and de-bonding will be followed. However,
testing charges and transportation of samples at the lab and work centre for the
reoffered material will be borne by the supplier along with actual cost of inspection
incurred/suffered by ONGC. In case, the material is not reoffered by the supplier
within four weeks, ONGC may decide to terminate the contract. Supplier shall
provide an undertaking to this effect along with bid.
(xii) Rejection of samples in two consecutive occasions may result into cancellation
of purchase order and forfeiture of performance bank guarantee/security deposit.
(xiii)In all cases where sample has passed the lab test and there is no dispute, the
sample will be destroyed after six (06) month from the date of receipt of
corresponding bulk consignment at the work centre. In case of any dispute, these
samples shall be retained till resolution of said dispute. Destruction / non-
destruction of such samples shall not override the supplier’s obligations under
warranty / shelf life or any other supply order conditions.
(xiv) Provisions under Para 21.8 below shall not be applicable for indigenous sourced
Fire Fighting Chemicals.

21.8 Rejection of sample

(MM/96/2023 dated 31.07.2023)

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21.8.1 The materials rejected by the Inspection Officer during this inspection will be
replaced/reoffered by vendor within the delivery schedule of Purchase Order failing
which provision of “Failure and Termination Clause/ Liquidated Damages Clause” of
Tender document will be applicable. Any rejection by Inspecting Officer shall be
considered final and binding on the vendor and such terms should be included in
the contract.
(MM/115/2023 dated 26.12.2023)
21.8.2 In the event of bulk sample getting rejected, the supplier can opt for any of the two
following options:

(Option-I) Supplier may get the same material re-sampled and re-tested in his
presence from the same laboratory where it was tested earlier.

(Option-II) Supplier may lift the failed material, re-process it and re-offer. Supplier
will replace the material at its cost within delivery schedule, failing which provision of
“Failure and Termination Clause/ Liquidated Damages Clause” of Tender document
will be applicable.

In either of the above options, item will be re-sampled and re-tested. If even the re-offered
material under Option-I or re-processed and re-offered material under Option-II fails,
following action shall be taken :-

a. Incident shall be raised in GeM portal if the tender is being processed through GeM.

However, in case tender is being processed under e-tender portal, the supplier on his part
will be debarred from participating in ONGC tenders for a period of one year.

(Following provision applicable for tender being processed through GeM as well as e-
tender portal)

b. Failure of two consecutive lots may result into cancellation of purchase order and
forfeiture of Performance Security (PS).

21.9 - Deleted – (covered under modified 21.7.1)

21.10 Random Sampling

21.10.1 For the material inspected at source, suitable provision shall be made in supply
order that ONGC reserves the right to carry out random sampling at destination in
the presence of supplier’s representative. However, in case supplier does not
depute its representative within time specified in intimation by ONGC regarding
sampling, ONGC shall carry out sampling without presence of supplier’s
representative. The samples so collected shall be tested at designated ONGC
Labs. Random sampling will be done on the basis of specific approval of the
concerned key executive. Rejected materials shall be replaced by the supplier
free of cost.

21.10.2 It will be a condition of the contract that supplies not found as per requirement at
destination will be replaced free of cost by the supplier.

249
21.11 Sub-standard Delivery of Items and Services

21.11.1 Substandard quality of supply

(MM/04/2015 dated 28.04.2015)


(MM/112/2023 dated 30.11.2023

a. For normal procurement of items, substandard items should not be


accepted. However, in exceptional circumstances, materials under
deviation in specification may be accepted on the recommendations of a
committee consisting of one representative each from Materials
Management, Finance and Indentor (Chemistry in case of chemicals) at
the level next below the level who is empowered to approve the rates for
sub-standard materials. The rates for sub-standard supplies will be
approved in each individual case by Authority one level above CPA in
whose powers the purchase falls. Concerned L-1 shall have full power in
this regard. In all such cases, the quantum of price reduction will be
determined after taking into account the loss in utility as assessed by the
indentor. Such material shall be accepted only after ensuring of cost
benefits to ONGC

b. However in case of substandard supplies of chemicals penalty should be


appropriately levied. Also, in case there are instances of repeatedly
supplying substandard stock of chemicals, the vendor should be banned.

21.11.2 Avoidance of sub-standard work / service

a. The contractors are required to execute all works according to the


specifications laid down, and in a proper workmanlike manner. There
shall be no compromise on the quality of work.

b. If certain items of work are done below specifications, and/or if they have
not been done in a proper workmanlike manner, the contractor should
be immediately asked to rectify or re-do them according to the
specifications and according to sound engineering practice. All such
defects/deficiencies in the items of works are to be noted in time and
notified to the contractor.

21.11.3 Acceptance of sub-standard work

a. It will be duty of the project in charge / TPI agencies to check that the
work done is as per specifications laid down in the contract. Normally
below specification/ defective/ below acceptable levels of workmanship
shall not be accepted and shall be rectified/ re-done during the progress
of the work itself. Only in exceptional circumstances should the work be
accepted and reduced rate should be worked out.

b. Exceptional circumstances for acceptance of work below specifications


and/or below acceptable levels of workmanship, and the resulting
payment at reduced rates for such defective/deficient works should be

250
resorted to only for those items where materials conforming to the
required specifications are not available, or where it is structurally
impossible to get the work re-done or where in opinion of Engineer in
charge it is expedient to do so.

c. While accepting such sub-standard work, it shall be ensured that the


structural integrity and functional and aesthetic requirements are not
compromised.
(MM/112/2023 dated 30.11.2023
d. The competent authority to approve reduced rate in above
circumstances shall be one level above CPA and concerned L-1
executive shall have full powers in this regard.

e. Amount of compensation recoverable in case of default shall be


determined by the conditions of the contract governing the supply.

21.11.4 Full rates, as per contract/supply order should be allowed only if the work
or supply has been accepted as of required quality and specification.

21.11.5 If the contract is determined, or an on account payment is to be made when


the contract is to run, a part rate as considered reasonable shall be allowed
with due regard to the work remaining to be done and general terms of the
contract, and after getting the part rate statement approved from the bill
passing authority.

21.12 Packing Instructions: Packing instructions as notified by the Chief-


Labs for each category of chemicals shall be suitably incorporated in the
POs.

251
22 Payment Procedure

22.1 Payment Process

22.1.1 The payment process for any contract should be linked to the delivery /
milestone schedule and should be aligned upfront with the vendor / contractor.

(MM/10/2016 dated 23.03.2016)


22.1.2 Save as otherwise provided in the tender/contract conditions, no payments
shall become due and payable to the Vendor / Contractor until contract is
signed.

(MM/69/2021 dated 20.08.2021)


(MM/113/2023 dt. 08.12.2023)
22.1.3 In the interest of expeditious release of payment, an indicative list of
various documents, which would be required to be submitted along with
the original invoice has been incorporated in the standard tender
conditions for procurement of goods and services. However, against each
tender, BEC Formulation Committee should deliberate on the said
indicative list of documents and select the appropriate documents as
applicable for the respective case and incorporate the same suitably in the
Bid document / Purchase Order, after making necessary
additions/deletions. BEC Formulation Committee shall ensure that the
documents which are not applicable for a particular tender, should not be
incorporated from the indicative list or otherwise. At a later stage, if any
change in documentation is required during execution of the contract,
Procurement Evaluation Committee of the same level should deliberate
and incorporate such changes in the contract, with the approval of CPA
(for which, concerned L-1 Executive shall have full powers). For the cases
valuing below Rs 10 lakhs, where no BEC Formulation
Committee/Procurement Evaluation Committee is held, CPA in
consultation with associated Finance shall decide such list of documents
to be submitted along with the original invoice.

22.2 Milestone Payment

22.2.1 Milestone payments can be made after taking into account for any financial
penalties if any.

22.2.2 The amount of LD shall however be withheld / deducted (as the case may
be), by finance, from the bills of supplier / contractor, while releasing
payments as per terms mentioned in the contract.

22.2.3 Adjustment to Contract Price, if any, shall be made in accordance with


provisions of Contract.

22.2.4 Milestone payment formula is built in for all procurement.

a. In case of goods, this should be done when control of handling / storing


of goods passes to ONGC. When items are being directly shipped to the

252
warehouse by the supplier themselves, this can happen after
acknowledgement of receipt of goods has been provided by ONGC.
Suitable remedies can be taken by the supplier to ensure goods are of
adequate quality. In the case of ICB items, this can happen once control
of goods passes to ONGC (at port / ex works).

No payment should be made when the control of goods is still with the
supplier.

b. For service (hiring of rigs, hiring vessels), this can be linked to passing of
certain number of days / period of operations.

c. For LSTK projects or works, progressive payments for the part executed
by the Contractor shall be made on the basis of said work completed and
certified by the Project Manager/Project Coordinator as per the milestone
payment formula / detailed measurements of items executed taken jointly
by the contractor and the Project Coordinator or their authorized
representative.

22.2.5 All the relevant documentation should be completed within 15 days of


receipt of application for certification with all required supporting documents.

(MM/50/2019 dated 04.07.2019)

22.2.6 Within 21 calendar days of the receipt of the invoice, the undisputed amount
of each invoice so approved / certified, will be released for payment to the
vendor / contractor.

22.2.7 Any amount under dispute can be made when the objection has been
removed / settled and the vendor / contractor submits fresh invoice for the
same.

22.2.8 After due vetting of the documents for change in duties/Taxes under change
in law by ONGC, Invoice on account of change in duties/taxes under change
in law, shall be submitted by the vendor / contractor after payment of all
duties/taxes along with necessary supporting documents in a single invoice.

22.2.9 All the payments shall be remitted to the vendor's / contractor's bank
account as per the initial details specified in the bids. The payment shall be
made in currencies stated in the Contract. ONGC shall be deemed to have
arranged payment of instruction to the vendor's / contractor's bank in the
country where the money is required to be paid.

22.2.10 ONGC shall also inform in writing to the vendor / contractor the details of
remittance i.e. amount and date.

a. In case of foreign vendors, bank charges of bank(s) in India shall be


borne by ONGC whereas bank charges of bank(s) in vendor' contractor's
designated locations, if any, shall be borne by vendor / contractor.

253
b. For goods supplied by foreign vendors, payment will be made through
LC

22.2.11 In the event of ONGC noticing at any time that any amount has been
disbursed wrongly to the vendor / contractor or any other amount is due from
the vendor / contractor to ONGC, ONGC may without prejudice to its rights
recover such amounts by other means after notifying the vendor / contractor
or deduct such amount from any payment falling due to the vendor /
contractor. Details of such recovery if any will be intimated in advance. The
vendor / contractor shall receive payment of undisputed amount under
subsequent invoice for any amount that has been omitted in previous invoice
by mistake on the part of ONGC or the vendor / contractor.

(MM/26/2017 dated 21.06.2017)


22.2.12. After receipt of “No Demand Certificate” as per the provisions, extension of
Performance Security should not be sought for release of payment to the
contractor/supplier.

(MM/69/2021 dated 20.08.2021)


22.2.13 In case of Services/LSTK contract, indentor to ensure the completeness
and correctness of complete set of documents as required in the contract
before sending the invoice to Finance for payment and shall certify as
under:

“Certified that all the documents as required in the contract has been received
and found to be in order for processing the payment”

22.2.14 Payment process for cases pertaining to procurement of Chemicals:

(I) In case of foreign suppliers Sampling, Bonding, Testing, De-bonding &


Dispatch shall be carried out at firm’s premises, and the payment shall be
released against LC upon presentation of shipping documents alongwith TPI
inspection report conforming to purchase order specifications.

(II) For cases pertaining to indigenous supply of chemicals where the inspection
(Sampling and Testing) shall be done at destination, payment shall be released
after acceptance of material against receipt of test report conforming to purchase
order specifications issued by ONGC/ONGC authorised labs.

22.3 Price escalation and adjustment

22.3.1 Price escalation and adjustment for items and services will be as per terms
and conditions mentioned in the respective contract. However, against the Rate
Contract for calculating escalation and de-escalation of freight charges on account of
variation in the diesel prices or for calculating various charges involved in a contract,
due care should be taken while defining various elements of a formula adopted for
calculating various charges in a contract. Further, wherever necessary Finance/Legal
departments may also be consulted while formulating a formula and the applicable
elements, before finally adopting the same.

254
22.4 Change in taxes and duties and other statutory changes

22.4.1 Any changes in taxes, duties or other statutory changes shall be governed as
per terms and conditions mentioned in the PO/Contract and BDP provisions
vide chapter no. 22.4 regarding enhancement in contract/target value.

22.5 Time Norms for processing of invoices by various sections

(MM/97/2023 dated 07.08.2023)


(MM/120/2024 dated 07.03.2024)
22.5.1 Invoice for Procurement of Materials, where payment is against receipt of
Materials

Section Time Norm

Inward Section 01 Calendar Day


Receipt & Inspection Section 01 Calendar Day
GR Section 02 Calendar Days
SSCP(IBM) 01 Calendar Day
SFS Team /Pre-Audit 03 Calendar Days
C&B/Forex section 02 Calendar Days
Total 10 Calendar Days

22.5.2 Invoices for Services, LSTK Contracts and Invoice for cases relating to NPO
/ “Direct FI entry

Section Time Norm

Technical/ Indenting Section 04 Calendar Days


SSCP(IBM) 01 Calendar Day
SFS Team / Pre-Audit 03 Calendar Days
C&B /Forex Section 02 Calendar Days
Total 10 Calendar Days

(MM/71/2022 dated 11.01.2022)


22.5.3 Vendor Invoice Management System (VIM System)

255
22.5.3.1 A work-flow based Vendor Invoice Management System has implemented,
which is an end-to-end scan-to-post invoicing automation system. Its main
feature is OCR, which reads and captures data from the vendor invoices
automatically and submit them for further processing in our system to desired
location/concerned user in ONGC.

Invoices alongwith supporting documents can be submitted/


uploaded through VIMS Portal (https://vims.ongc.co.in/), which would be
the preferred mode of submission of Invoice. Invoice (PDF digitally signed with
class II/ III signature) and supporting documents can be uploaded in VIMS
Portal by logging-in with the help of Vendor Code.
However, in case Contractor is not able to submit/upload the Invoice through
VIMS portal as mentioned above, Invoice alongwith supporting documents can
also be submitted/uploaded in any of the following 2 ways:-
i) EMAIL channel: Invoice (PDF digitally signed with class II/ III signature)
and supporting documents can be submitted by sending these documents to
a designated email-id: ap_invoices[at]ongc[dot]co[dot]in.
ii) Deleted (MM/97/2023 dated 07.08.2023)
22.5.3.2 For PO based invoices, workflow in VIMS is triggered to the concerned
officers (i.e. PO Contact Person (designated as Buyer in VIM) and Indenting
Person (Designated as Indenter in VIM)), whose detail is mentioned in “Contact
Details” Tab of PO Header.
The details mentioned under “Contact Details” Tab of PO Header is to be
updated upon transfer or superannuation of officers, whose details are
mentioned therein, by Transaction code ZMMPO_CONTACTUPD, without de-
releasing purchase order
22.5.4 Vendor Master in respect of particulars of suppliers/vendors (as received in
their bids) should be got updated regularly in the ICE system by the concerned
dealing officer/payment authority, through the respective officials at each work
center who are authorized to update the master data, so that all the payments
and refunds are made smoothly through electronic payment mechanism. Bank
particulars of bidders / vendors / suppliers / contractors can be entered in the
ICE system through the Transaction code – “zmm_vms”.

(MM/69/2021 dated 20.08.2021)


(MM/89/2023 dated 26.05.2023)
22.5.5 After opening of tender, the dealing officer shall ensure that Valid GSTIN,
mobile no., e-mail id, Bank details, PAN etc. indicated in the bid are mapped
against vendor code of such vendor in the SAP well before placement of NOA
/ release of PO (wherever PO is placed directly without NOA). In case such
details are not provided along with the bid, bidder to be asked to provide the
same before placement of NOA, the same shall be updated in SAP on priority
by dealing officer before release of PO. The PO can be released only when
Bank details, PAN no. and GSTIN no. are populated in the PO being placed
on vendor with Indian address in its vendor code.

256
In case such details (as applicable) are provided by a foreign contractor after
placement of NOA, the same shall be updated in SAP on priority by dealing
officer to facilitate timely payment.

In respect to Bank details and PAN, the dealing officer will forward the details
submitted by supplier to concerned Finance, who in turn will update Bank
details and PAN against vendor code in SAP.

22.5.6 As part of biding requirement, bidders may be asked to also provide details of
their Supply / contract executing offices (other than that used for bidding)
based on the tender scope of supply / work duly indicating/providing their
respective valid GSTIN and Bank account details etc. Vendor codes of such
offices, if not available in SAP, shall be got created by dealing officer and
mapping of their respective valid GST numbers, bank account details and PAN
etc shall be got done before placement of PO/Contract. PAN shall remain
same as that of main office of vendor already registered with ONGC. The
details of such Supply / contract executing offices shall be indicated in PO /
Contract.

Each SAP vendor code can accommodate only one GST, PAN and Bank
account no. Currently, SAP PO can accommodate 2 vendor codes using
partner function. One on which PO is created and another is Alternate
Payee(Payment recipient)/Invoicing party(Invoice presented by) in Partner
Function. ICE has developed a table control mechanism in the system where
desired vendors codes are entered for allowing multiple payee against a PO
no., which may be utilized in such cases.
22.6 Intimation to suppliers/ contractors regarding deduction of payments

22.6.1 Wherever any deduction has been effected from the bill of the contractor,
on account of various reasons such as LD, any loss suffered by ONGC,
on receipt of defective/substandard material, detailed description and
amount of deduction may be formally informed to the supplier/ contractor
by the concerned Finance Section clearing the bill.

(MM/69/2021 dated 20.08.2021)


22.7 Roles and Responsibilities in review of payment related documents:

22.7.1 The role and responsibility of different departments in review of payment


related documents shall be as under

A. Procurement of Goods

A.1 Applicable for cases involving payment through Bank against proof of
dispatch & satisfactory inspection
(LSC)

257
i. Documents received alongwith invoice for payment as per PO conditions:

(a) Bank will forward documents to Finance. Finance shall first review the
documents as per terms of payment of the PO. However, (i) in case of some missing
document (s) from supplier, matter may be referred to order placing section and /or
(ii) if issues related to submitted document require clarification, finance may refer
the respective document to the authorities as per matrix.. The respective authority
will furnish their clarification/missing documents to concerned Finance immediately
but not more than 2 working days from the date of request from Finance. Finance
may take up with bank accordingly.

(b) (Applicable after roll out of VIMS):


Vendors shall be advised to either load complete set of non-negotiable documents
(scanned copy of documents submitted to bank for payment) at VIMS portal
(https://vims.ongc.co.in) or send to mail address specially created for invoice receipt
in VIMS in addition to the mail to be sent to various departments as mentioned in
the tender condition.
(MM/113/2023 dated 08.12.2023)
Sl. Document (as applicable) Responsibility Remarks
No. of Review
1 Tax Invoice (in original) Finance
(Including
compliances
relating to Direct
and Indirect tax
matters).

2 Proof of dispatch (RR/GCN/LR/e-way Purchase Order


bill etc.), Copy of the e-way bill / e-way Placing authority
bill number (EBN) wherever required
3 Proof of insuring material during transit Finance
(as per Purchase Order T&C)

4 QCC for satisfactory inspection, TPI QAD/Indentor


Report (In case of inspection by TPI (Authority
agency), Warranty/Guarantee responsible for
Certificate. raising QCC)

Note: TPI report (wherever applicable)


and warranty certificate will be uploaded
under QCC certificate in SAP system by
Indentor/QAD as the case may be.
5 Any other document specifically not Indentor /
mentioned above but which is Finance / MM *
mentioned in PO payment terms (as applicable)

258
6 (Applicable in case of High Sea Sales) ---

All documents as currently required as


per para 29.2.8 of IMM Manual and any
additional document deemed necessary
to be decided in the BEC Formulation
Committee/Procurement Evaluation
Committee. Further, responsibility of
reviewing those documents also be
deliberated and decided in above
committee considering the payment
terms.

Remarks:

* Note: BEC Formulation Committee should clearly bring out the relevant document
(i.e. any other document specifically not mentioned above but which is required to be
mentioned in PO payment terms as per deliberations of the BEC Formulation
Committee) and mention which department will check the document. This information
shall be indicated in as an internal note in SAP PO/Contract (which does not appear
in print out of PO/contract to the contractor) itself so that compliance is ensured and
a mail in this regard shall also be send to concerned officers by dealing officer.

A.2 Cases involving payment after receipt of material at destination (GRV)

i. Documents received alongwith supply as per PO Conditions:


(To be checked by the receiver of goods (In-charge receipt/Indentor, as the
case may be))

Sl. Document (as applicable) Responsibility of Review


No.
1 Copy of Tax Invoice
2 Proof of dispatch (RR/GCN/LR/e-way Receiver of goods (I/c-Receipt/
bill etc.), Copy of the e-way bill / e-way Indentor, as the case may be)
bill number (EBN) (Wherever
applicable) From copy of Tax Invoice only item
description, quantity, name of supplier,
name of buyer as per P.O will be
reviewed by Receiver of goods.
3 Satisfactory inspection report/TPI
report & QCC issued by authority Note: Based on the certification from
mentioned in PO, wherever receiver of goods, the concerned store
applicable formation (I/c-receipt) raising the GRV
shall also check all the documents and
prepare GRV as per

guidelines on the subject.


ii. Documents received alongwith invoice for payment:

concerned store formation (I/c-receipt)


raising the GRV shall also check all the
259 documents and prepare GRV as per
guidelines on the subject.
(Tax invoice in original and GRV from the system shall be checked by the -
concerned Finance. Rest of the documents stands already checked as per (i)
above.)

Sl. Document (as applicable) Responsibility of Review


No.
1 Goods Receipt Voucher Finance
(Not required to be submitted by (in system)
Supplier)
Raising of GRV shall be the
responsibility of stores formation

2 Tax Invoice ( original) Finance


(Including compliances relating to
Direct and Indirect tax matters)
3 Proof of delivery in case of direct / ----
door delivery (i.e. GCN/LR/Delivery
Challan, duly acknowledged by the
consignee.)

Copy of the e-way bill / e-way bill


number (EBN) (Wherever
applicable)

(Not required for payment, required


only for archival purpose)

4 Satisfactory inspection report/TPI ----


report & QCC issued by authority
mentioned in PO, wherever
applicable

(Not required for payment, required


only for archival purpose)

5 Any other document specifically not Indentor / Finance / MM*


mentioned above but which is (as applicable)
mentioned in PO payment terms

Remark:
1. The responsibility to review Invoice and GRV shall be on Finance while releasing
payment, rest of the documents will be reviewed by concerned officials during process
of inspection, supply, raising GRV etc. and not required to be checked again during
payment. Raising GRV shall mean that all the documents except tax invoice have
been checked and found in order by the respective authority as per above matrix.

(MM/113/2023 dated 08.12.2023)

260
* Note: BEC Formulation Committee should clearly bring out the relevant document
(i.e. any other document specifically not mentioned above but which is required to be
mentioned in PO payment terms as per deliberations of the BEC Formulation
Committee) and mention which department will check the document. This information
shall be indicated in as an internal note in SAP PO/Contract (which does not appear
in print out of PO/contract to the contractor) itself so that compliance is ensured and
a mail in this regard shall also be send to concerned officers by dealing officer.

A.3 (Applicable for Import of goods involving payment through Letter of


Credit (LC)

i. Documents as per LC/PO conditions received in case of payment through


LC:

(a) The bank is responsible to make payment to vendor based on the


documents submitted as per the LC/contract conditions.

The bank is responsible to make payment to vendor based on the documents


submitted as per the contract conditions.
In case the Bank refers the document to finance for clarification/confirmation
on certain deficiencies in the submitted documents, then concerned finance
may refer the document(s) to the authorities as per matrix for
clarification/confirmation. In case of missing document (s) from supplier,
Finance will refer the matter to order placing authority. The respective authority
will furnish their clarification/confirmation/missing documents to concerned
Finance immediately but not more than 2 working days from the date of request
from Finance.Finance may take up with bank accordingly.

(b) (Applicable after roll out of VIMS) Vendors shall also be advised to either
load complete set of non negotiable document at VIMS portal
(https://vims.ongc.co.in) or send documents to e-mail address specially
created for invoice receipt in VIMS. This will become part of instruction in
all Pos in addition to the mail to be sent to various departments as
mentioned in the tender condition.

Sl. Document (as applicable) Responsibility of Review


No.
1 T&S section/Authority responsible
Comcomplete set of clean Bill of Lading
to get the material released
/House Airway Bill made to order
and blank endorsed wherever
applicable.

261
For Air Consignment (documents
through bank)
Complete set of House Air Way Bill
clean on Board made to order and
blank endorsed.

2 Finance
Invoice drawn in the name of ONGC
(Including compliances relating to
duly signed. Direct and Indirect tax matters).
( showing value item-wise as per
supply order for customs purposes)

3 Finance
In case spares are supplied free of
charge alongwith main equipments,
invoice indicating the value of spares
also itemwise, with certificate as
under:
"No commercial value, value is being
shown for customs purposes only."
4 QAD/Indentor i.e.Authority
Certificate of test/ inspection from
responsible for raising QCC
manufacturer

5 QAD/Indentor i.e.Authority
Certificate of warranty from
responsible for raising QCC
manufacturer

6 QAD/Indentor i.e.Authority
QCC issued by ONGC for
responsible for raising QCC
satisfactory inspection
7 TPI Report, wherever applicable Indentor i.e. Authority responsible
for raising QCC

8 Certificate of origin from Chamber of Purchase Order placing authority


Commerce of the exporting country.

9 Packing list package-wise and Purchase Order placing authority


port/ultimate consignee -wise and
container wise

262
10 Indentor
(wherever applicable)
For Shipment of Pipes
Piecewise lengths of the pipes for each
shipment must be indicated in
shipping documents and the total
length of pipes each exceeding 12
metres in length must be indicated
separately. In case of pipes upto 6"
dia; the pipes must be shipped in
11 bundles ofcertificate
Insurance uniform policy
quantity
givingand
all Finance
each bundle must have a
details where insurance is required toTag
indicating
be all by
arranged details of consignor,
the SUPPLIER.
12 consignee, supply order No., QAD/Indentor
Certificate of recent manufacture.
Quantity (Pieces and Length), Port
(The date of
of Shipment andmanufacture
discharge etc.of the Authority responsible for raising
finished product/ item/ equipment/ QCC
material supplied is not older than Finance
13 one year from the date of shipment.) QAD/Indentor
Following Certificate:
“Certified that the material covered i.e. Authority responsible for raising
by invoice has passed the test and QCC
inspection and conforms in every
way to the correct specifications as
per supply order/contract. It is
further certified that the invoice and
other non-negotiable copies (3 sets)
of the documents have been
despatched each to Port Consignee
and Ultimate Consignee vide letter
No................…….date...............”

14 Following Certificate: Finance

“Supplies both as to quantities and


value are in terms of the supply order
and we undertake to refund forthwith
to ONGC any excess amount
claimed outside the terms of the
supply order.”

263
15 Following certificate: Purchase Order Placing Authority

"The material covered by invoice


has passed test and inspection of
manufacturer and conforms in every
way to the contract specifications
and is packed in accordance with
contract requirements. The invoice is
correct in every particular and no
other invoice except proforma
invoice has been tendered
previously in respect of the articles
charged for."

16 Following Certificate: Purchase Order Placing Authority

"Certified that packing of the material


against this supply order has been
done Port and Consignee-wise as
indicated in the supply order and
concerned invoice has accordingly
been prepared separately for
material shipped Port Consignee
wise. It is further certified that box-
wise/container-wise list has been
sent to Port Consignees."

17 In case the material is hazardous in QAD/Indentor


nature:
Material safety data sheets while i.e. Authority responsible for raising
dispatching the material. QCC
18 Any other document specifically not Indentor / Finance / MM *
mentioned above but which is (as applicable)
mentioned in PO payment terms
(MM/113/2023 dated 08.12.2023)
*Note: BEC Formulation Committee should clearly bring out the relevant document
(i.e. any other document specifically not mentioned above but which is required to be
mentioned in PO payment terms as per deliberations of the BEC Formulation
Committee) and mention which department will check the document. This information
shall be indicated in as an internal note in SAP PO/Contract (which does not appear
in print out of PO/contract to the contractor) itself so that compliance is ensured and
a mail in this regard shall also be send to concerned officers by dealing officer.

B. LSTK

264
Invoice will be submitted by Contractor along with necessary supporting documents
as per requirement of Contract through IMS/VIMS to Indenting Section / Project
Group. Indenting Section / Project Group, will examine the same and in case all the
required documents are submitted and found in order , will certify the Invoice for
payment and forward to Finance for releasing payment. Indenting section/Project
group to forward the invoice mentioning “Certified that all the documents as required
in the contract has been received and found to be in order for processing the
payment”. Once the invoice and supporting documents are checked and certified by
the section as per the responsibility matrix given below, there would not be any need
for further review of such document by any deptt. except for calculation checks by
finance and other documents if any requiring specific expertise of finance as
deliberated in BEC Formulation Committee.

Sl. Document (as applicable) Responsibility of Review


No
.
1 Tax Invoice (original) Finance
(Including compliances relating to
Direct and Indirect tax matters.)
2 Insurance policies, their validity for all Indentor
and proof of payment of premium only
for a, b, & c below,
a) Contractors All Risk Insurance,
b) Cargo Transit Insurance,
c) Third party liability Insurance,
d) Automobile and Transportation
liability Insurance,
e) Workman’s
compensation/Employer’s
liability Insurance,
f) Insurance policy for Contractor’s
constructional plant and
equipment

g) Insurance Policy for Marine


Spread ( Barges, Vessels,
boats, tugs etc.)
h) Motor Vehicles Package Policy
i) Insurance for workmen engaged
under this contract
(As applicable).
3 Certificate of Acceptance of Successful Indentor
Completion of Mobilization (Issued by
Indentor), wherever applicable
4 Milestone completion certificate Indentor
certified by CA/TPI

265
5 Milestone calculation sheet for the Indentor
Invoice value as per the contract (To be also checked by Finance#
before payment and in case of
discrepancy to be sent back to
Indentor for necessary correction
and certification)

6 Declaration of Exchange rate –GAAP Finance


rate as on the date of Invoice from the
contractor(Wherever applicable)
7 Undertaking of country for import of Indentor
goods/services ( for Form A2)
8 Statement of calculation for any other Indentor
recovery as per contract provision (To be also checked by Finance#
including LD before payment and in case of
discrepancy to be sent back to
Indentor for necessary correction
and certification)

9 A. Details of statutory payments like Indentor


EPF and ESI (and documents
thereof) (Services)-Challan
B. Details of statutory payments like Indentor
EPF and ESI (and documents
thereof) (Services)-Data Sheet
C. Any other document as required in Indentor
connection with statutory
payments like EPF and ESI etc. as
per Contract conditions
10 Undertaking by the contractor Indentor
regarding compliance of all statutes

11 (i) Proof of payment by Contractor of Indentor


salaries/wages to its personnel
Indentor
(ii) Documents required in compliance
to labour law
Indentor

(iii) Certificate by the contractor stating


that labour have been paid not less
than minimum wages.

12 Local content related documents( if Indentor


applicable)

266
13 Pradhan Mantri Suraksha Bima Yojana Indentor
(PMSBY) and Pradhan Mantri Jeevan
Jyoti Bima Yojana (PMJJBY).
14 For Foreign contractors, certificate Finance
issued under 197/195(2) in accordance
with the requirements for making
remittances to non-residents as per
Income Tax Act, 1961 (if applicable)

15 Any other document specifically not Indentor / Finance / MM *


mentioned above but which is (as applicable)
mentioned in Contract payment terms

*Note1: No standard document for LSTK contracts is available presently. Based on


documents for payment finalised by BEC Formulation Committee, responsibility
matrix shall be applicable.

BEC Formulation Committee should clearly bring out the relevant document (i.e. any
other document specifically not mentioned above but which is required to be
mentioned in payment terms as per deliberations of the BEC Formulation Committee)
and mention which department will check the document. This information shall be
indicated in as an internal note in SAP PO/Contract (which does not appear in print
out of PO/contract to the contractor) itself so that compliance is ensured and a mail
in this regard shall also be send to concerned officers by dealing officer.
#Note 2: In respect to checking of the statements of recoveries, deductions, LD, Mile
Stone calculation sheet, etc.by Finance, the scope of the same will be limited only to
the calculation part for numerical / arithmetical errors and not the basis of working out
/ deriving the amounts.

C. Hiring of Services
Invoice will be submitted by Contractor along with necessary supporting documents
as per requirement of Contract through IMS/VIMS to Indenting Section / Project
Group. Indenting Section / Project Group, will examine the same and in case all the
required documents are submitted and found in order , will certify the Invoice for
payment and forward to Finance for releasing payment. Indenting section/Project
group to forward the invoice mentioning “Certified that all the documents as required
in the contract has been received and found to be in order for processing the
payment”. Once the invoice and supporting documents are checked and certified by
the section as per the responsibility matrix given below, there would not be any need
for further review of such document by any deptt. except for calculation checks by
finance and other documents if any requiring specific expertise of finance as
deliberated in BEC Formulation Committee.

267
Sl. Document (as applicable) Responsibility of Review
No.
1 Tax Invoice ( original) Finance
(Including compliances
relating to Direct and Indirect
tax matters.)
2 Insurance policies, their validity for all and Indentor
proof of payment of premium only for a, b, &
c below,
a) Contractors All Risk Insurance,
b) Cargo Transit Insurance,
c) Third party liability Insurance,
d) Automobile and Transportation
liability Insurance,
e) Workman’s
compensation/Employer’s liability
Insurance,
f) Insurance policy for Contractor’s
constructional plant and equipment

g) Insurance Policy for Marine


Spread(Barges, Vessels, boats, tugs
etc.)
h) Motor Vehicles Package Policy
i) Insurance for workmen engaged
under this contract

(As applicable)
3 Certificate of Acceptance of Successful Indentor
Completion of Mobilization (Issued by
Indentor), wherever applicable
4 Third party Inspection Report ( in case of Indenter
charter Hiring of Rigs)
5 A. Details of statutory payments like EPF Indentor
and ESI (and documents thereof)
(Services)-Challan
B. Details of statutory payments like EPF Indentor
and ESI (and documents thereof)
(Services)-Data Sheet
C. Any other document as required in Indentor
connection with statutory payments like
EPF and ESI etc. as per Contract
conditions
6 Undertaking by the contractor regarding Indentor
compliance of all statutes

268
7 (i) Proof of payment by Service Provider of Indentor
salaries/wages to its personnel
Indentor
ii) Documents required in compliance to
labour law
Indentor
(iii) Certificate by the contractor stating that
labour have been paid not less than
minimum wages/Fair Wage (as applicable).

8 Copy of Time sheet / Log Sheet /DPRs Indentor

9 Attendance Sheet Indentor


10 Statement of persons travelled on Indentor
chargeable basis (Recoverable) (To be also checked by
Finance# before payment and
in case of discrepancy to be
sent back to Indentor for
necessary correction and
certification)

11 Fuel charges (Daily consumption report of Indentor


fuel) and statement of material/ consumption (To be also checked by
Finance# before payment and
in case of discrepancy to be
sent back to Indentor for
necessary correction and
certification)

12 Catering Bill (Log Sheet). Indentor


13 Telephone Bill (Log sheet). Indentor
14 Pradhan Mantri Suraksha Bima Yojana Indentor
(PMSBY) and Pradhan Mantri Jeevan Jyoti
Bima Yojana (PMJJBY).
15 Local content related documents( if Indentor
applicable)
16 For Foreign contractors, certificate issued Finance
under 197/195(2) in accordance with the
requirements for making remittances to non-
residents as per Income Tax Act, 1961 (if
applicable)

17 Proof of payment of periodical premiums Indentor


towards Group Gratuity and Group Insurance
etc obtained to cover the personnel at the
location(s). (wherever applicable)

269
18 Declaration of Exchange rate –GAAP rate as Finance
on the date of Invoice from the
contractor(Wherever applicable)
19 Statement of calculation for any other Indentor
recovery as per contract provision including (To be also checked by
LD Finance# before payment and
in case of discrepancy to be
sent back to Indentor for
necessary correction and
certification)

20 Any other document specifically not Indentor / Finance / MM *


mentioned above but which is mentioned in (as applicable)
Contract payment terms
(MM/113/2023 dated 08.12.2023)
*Note 1: BEC Formulation Committee should clearly bring out the relevant document
(i.e. any other document specifically not mentioned above but which is required to be
mentioned in PO/Contract payment terms as per deliberations of BEC Formulation
Committee) and mention which department will check the document. This information
shall be indicated in the PO/Contract itself so that compliance is ensured.
#Note 2: In respect to checking of the statements of recoveries, deductions, LD etc.by
Finance, the scope of the same will be limited only to the calculation part for numerical
/ arithmetical errors and not the basis of working out / deriving the amounts.

Note 3:
In case of charter Hire of Rigs, review of similar documents shall be as prescribed in
case of services. Any additional document as per tender conditions shall be
deliberated by BEC Formulation Committee and BEC Formulation Committee to
mention which department will check the document.

22.7.2 Existing process for certification and review of invoice as per clause 18 & 19
of Appendix M of BDP shall continue.

22.7.3 (Applicable after roll out of Vendor Invoice Management System (VIMS))
Once documents are submitted alongwith invoice in VIM system, these document
alongwith all supporting documents and invoice shall be archived in VIMS and
attached to respective SAP document like LIV, Accounting document and there will
not be any need of uploading these document again anywhere. These document can
even be referred through PR/PO using Status/Purchase order history tab and
subsequently opening the LIV document/Accounting document.

270
(MM/59/2020 dated 28.08.2020) (Clause renumbered vide MM/69/2021 dt. 20.08.2021)
22.8 Process to be followed in case of difference in GST quoted by bidder vis-
à-vis assessed by ONGC in Service/LSTK contracts:

(MM/113/2023 dated 08.12.2023)


22.8.1 Rate-Difference opinion arising at Bid Evaluation Stage: Based on quoted
rates, ranking of the bidders shall be worked out. Price reasonability shall be
determined as per quoted tax rate. If the tender evaluation team (Procurement
Evaluation Committee) notes that different tax rates have been quoted by various
bidders in the tender and / or tax rates considered by L-1 bidder are different than the
tax rate in the opinion of ONGC, action as proposed below may be undertaken:

*{Tenders for centralized items which are processed as a special case by the work
centre other than the normally authorized ones as per IMM Manual, the concerned
tender evaluating team may refer to the similar contracts awarded by the authorized
work centres.

For decentralized items, contract related data for the concerned work centre will be
sufficient unless brought to the notice of concerned work centre. }

(a) Based on different data on quoted tax rates, Procurement Evaluation


Committee shall work out applicable tax rates in terms of different line
items considered by the L-1 bidder in the ‘Change in Law’ format of their
bid.

(b) If the tax rates considered by the L-1 bidder are lower than the tax rates
worked out by tender evaluation team, the offer of L-1 bidder may be
processed further as tax would be restricted to his quoted rates (no higher
rates would be allowed) in terms of confirmation given by him with his
bid.

(c) If the tax rates considered by the L-1 bidder are higher than the tax rates
worked out by tender evaluation team, the matter may be taken-up with
the bidder (through letters / e-mails / system generated messages /
discussions) by the team with the approval of Competent Authority (who
is authorized to allow price negotiations for the case). The issue may also
be discussed along with price negotiations, in case undertaken with the
bidder, during the course of ascertaining price reasonability (to be based
on quoted tax rate).

Process of Indemnification:

I. The L-1 bidder shall be explained the reasons for applicability of lower
tax-rate than as specified by him in his bid and he may be asked to accept
the same.

271
II. If difference of opinion with the L-1 bidder still persists, they (L-1 bidder)
will be asked to provide detailed justifications in support of the same
alongwith documentary evidence, if any, for further examination of
ONGC.

III. Procurement Evaluation Committee will examine the justifications


provided by the L-1 bidder. If Procurement Evaluation Committee still
holds on to its earlier position of lower tax rate, it will refer the matter to
Corporate Indirect Tax Dept. for their opinion.

IV. The Corporate Indirect Tax Dept. shall provide its view to the Work Centre
on the applicable rate of tax; and if the applicable rate of tax is lower than
the rate quoted by the L-1 bidder, then the process / procedure to
challenge before tax authorities / tribunal / court and likely implications
about interest and penalty in case ONGC’s contention is finally not
upheld, shall be indicated therein.
Corporate Indirect Tax Dept. may, if it feels necessary, seek opinion of
outside empaneled expert also before finalizing its views.

V. Procurement Evaluation Committee, based on the views of Indirect Tax


Dept., will take up the issue of applicability of lower rate of tax with L-1
bidder. If the L-1 bidder still does not agree with the applicability of lower
rate of tax, then the Procurement Evaluation Committee may consider
the option of either :

(i) providing suitable indemnity with the approval of Competent


Authority (as per para 22.7.7 below) to indemnify the contractor
against differential amount of tax along with applicable interest and
penalty, if any, and pay lower rate of tax till finalization of matter
(Detailed process of application of this option shall be as per para
VI below)

(this option to be considered if the cost of litigation and time involved


in the process appear to be rational considering the amount of
differential tax, interest thereon and possible penalty, if any. Further,
this option will be exercised only when there is higher degree of
possibility of acceptance of ONGC opinion of lower tax rate by the
tax authority / judicial forum (Tribunal / Court) and chances of
ONGC losing & thus applicability of Interest and penalty in that
event, are very bleak. However, in case ONGC’s point of view is
not finally accepted and interest & penalty are applied, the same
may be considered as business risk).

or

272
(ii) agree with the bidder and recommend placement of the NOA with
rate of tax quoted by the bidder (if the cost of litigation and time
taken thereon do not appear to be rational considering the amount
of differential tax, interest and possible penalty, if any)

VI. In case it is decided to provide indemnity as brought out at para no. (V)
(i) above with the approval of Competent Authority, the L-1 bidder /
contractor will be informed that ONGC would like to pay lower rate of tax
till finalization of matter and indemnify the Contractor against differential
amount of tax along with applicable interest and penalty, if any subject to
bidder confirming acceptance to the following in case of award of
contract:

(i) They (L-1 bidder / contractor) shall represent suitably with the
concerned jurisdictional tax authority for applying such lower tax
rate to avoid imposition of penalty at a later date. A copy of such
communication shall also be provided to ONGC.

They (L-1 bidder / Contractor) will pay GST at the rate intimated
by ONGC. However, if Contractor receives any notice / demand
from tax authorities for payment of GST at higher rate, then
Contractor will immediately submit a copy of the notice received
from the tax authorities to ONGC. Contractor will take action on
such demand as advised by ONGC. ONGC shall not be liable to
reimburse or pay to the contractor any amount on account of
such tax demand if Contractor does not contest the demand and
or does not take action as advised by ONGC.

The decision of ONGC about applicable rate of GST shall not be


referred to arbitration or conciliation and contractor shall take up
the matter with tax authorities as per advice of ONGC. Any
demand for referring any dispute relating to the rate of tax to
arbitration or conciliation shall be void and not valid under the
arbitration clause of the contract.

The above provisions shall be made part of the Contract, in case of


award on L-1 bidder.

VII. Payment process under Indemnity Provision: In case final tax-rate


assessed by tax authority/ judicial authority happened to be higher than
the tax rate assessed by ONGC based on which payments were made
till date of such decision, ONGC would be required to additionally pay
only the portions of interest and penalty ( if imposed) since the additional
amount due to tax rate differential (between amount calculated as per
contractual tax rate and payment made at lower rate with indemnity)

273
would already be covered in the contractual provision. Payment towards
interest and penalty would be additional payment(s), therefore their
payment would require separate provisions to be made in the contract.
These may be done under post contract issue as per provisions of IMM
Manual and BDP with the approval of Competent Authority by creating
separate line items for them ( i.e interest and penalty, if any) by way of
amendment to contract ( and OLA) for the respective amounts and
increasing the overall contract value ( OLA target value).

22.8.1.1 In case indemnity is to be provided to a vendor in a tender, the same should


be frozen before finalizing the award of Contract. All efforts should be made by the
work centres to conclude the process outlined at 22.7.1(c) above within the bid
validities.

22.8.2 In case the tender provides for distribution of requirement, similar process ( as
per para 22.7.1 and 22.7.1.1 above) may be adopted with L-2, L-3 … bidders ( as the
case may be), if required.

22.8.3 Rate Difference opinion arising after Award of Contract: The difference of
opinion between ONGC and Contractor due to interpretation of “Change in Law” (such
as issuance of new notification/clarification) announced after award of Contract
(wherein GST rate in the opinion of ONGC is lower than as informed by Contractor
for amending the Contract) may be handled in the similar manner as outlined at para
no. 22.7.1 (c).

22.8.4 Approval for providing /not providing indemnification considering implications


as per para 22.7.1 (c) (V) (i) & (ii), approval of Competent Authority (as per para 22.8.7
below) will be taken.
(MM/113/2023 dated 08.12.2023)
22.8.5 In case L-1 bidder / Contractor does not agree for lower tax (than his quoted
tax) and indemnification process as brought out above even after protracted
persuasion by ONGC, Procurement Evaluation Committee with the approval of
Competent Authority(as per para 22.8.7 below) would decide further course of action
in the best interest of ONGC. Wherever such lower rates of GST has been considered
with indemnity, such case should be informed to all work centers for uniformity by
indirect tax.
22.8.6 The option of providing indemnity should be exercised only in exceptional
cases considering time & cost of litigation.

22.8.7 Competent Authority for deciding/approving grant of indemnity shall be as


under:

If decision for providing indemnity is to be taken during award stage:


CPA based on recommendation of Procurement Evaluation Committee

If decision for providing indemnity is to be taken after award of contract:

274
Competent Authority for according approval as post contract issue, based on
recommendation of Procurement Evaluation Committee.

275
23 Contract closing

23.1 Contract closing process

23.1.1 Once all the delivery has been made after adequate inspections and quality
checks, and the payments have been made, and no further disputes remain,
the contract/PO shall be deemed closed. To ensure compliance, I/C MM and
L-2 (in case of user department)shall monitor and ensure timely closure of
POs/ contracts before or at the time of release of security deposit (SD). In case,
item wise undelivered quantity is less than 1 (one) percent of total ordered
quantity due to allowance required in manufacturing process, transportation
conditions including packing, shipping, loading/unloading etc. and the delivery
period is already over and GR raised. Authority who has signed the order shall
immediately close such POs in consultation with the Indentor. Such closure
shall be without initiating any punitive action against the supplier. However, it
must be ensured that payment, if any made, for such undelivered quantity is
recovered before closing the PO.

(MM/10/2016 dated 23.03.2016) – (New Provision)


23.1.1.1 In order to complete the contract closing process, the field meant for delivery
completion shall be invariably “ticked” by concerned dealing officer and field meant
for final invoice at item level shall be ticked by Finance officers while doing LIV
marking invoice as final invoice.

23.1.2 For LSTK/Projects, the Indentor / User should be informed by the concerned
project execution group / service group for being associated with the pre-
commissioning, commissioning and handing over acceptance tests from the
Contractor. A formal handing over of the Project should thereafter be done in
writing after drawing up a list of 'punches points', if any. The list of punch points
shall be jointly signed by the Contractor, Project Manager (or his
representative) and Indentor. Schedule for the liquidation of punch points
should also be made in the handing over format.

23.1.3 In case of LSTK/ Projects, a completion report of actual expenditure of the


project should be prepared and submitted along with the completion report by
the Project Manager.

23.2 Termination of contract / supply order


(MM/112/2023 dated 30.11.2023)
23.2.1 Competent Purchase Authority will have full powers to cancel the contract /
supply order in the event(s) indicated in sub-paras a to f below. Concerned L-
1 executive shall full powers including for CoDP/MCoDP level cases.
Provisions of Liquidated Damages / Failure and Termination and acceptance
of materials in deviation to specified specifications respectively will be kept in
view while exercising powers in respect of sub-paras a and f below:-

a. Poor vendor rating (as defined in the section on vendor rating)


b. Misrepresentation of facts leading to poor vendor performance

276
c. Specified delivery schedule is not adhered to
d. Laid down specifications are not adhered to or when the performance of
the contract is un-satisfactory.
e. Major contractual terms and conditions are violated
f. Insolvency.

23.2.2 Provisions relating to ‘Automatic Termination’ of contracts, on account of


delay in mobilization shall not be incorporated tenders even in tenders for
charter hire of rigs.

277
24 Other Issues

24.1 Subletting and Assignment:

24.1.1 The contractor shall not save with the previous consent in writing of the
Purchase Authority sublet, transfer or assign the contract or any part thereof
or interest therein or benefit or advantage thereof in any manner whatsoever
provided nevertheless that any such consent shall not relieve the contractor
from any obligation, duty or responsibility under the contract.

24.2 Arbitration

24.2.1 Arbitration will be as per terms and conditions of general and special conditions
of the contract. For appointment of Arbitrators and the panel of arbitrators, the
work centres shall follow the guidelines issued by Chief -Legal Services.

24.3 Post contract issues

(MM/04/2015 dated 28.04.2015)


(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
(MM/114/2023 dated 20.12.2023)
(MM/117/2023 dated 29.12.2023

24.3.1 Post contract issues (Post LOA/ NOA issues, wherever LOA/NOA is
placed in line with the agreed tender / bid conditions) will require to be
deliberated by the Procurement Evaluation Committee (for cases
exceeding Rs 10 lakh) and submitted for approval of the Competent
Purchase Authority. Concerned L-1 shall have full powers in this regard.
Procurement Evaluation Committee may seek inputs/comments, if
required, from Nodal Technical Agency (for cases under CPD)/ concerned
Indenting Section (for other cases). When purchase does not fall under
purview of Procurement Evaluation Committee, dealing officer of MM in
consultation with Indentor and Finance shall put up the proposals for
approval of CPA. For cases dealt by departments other than MM, proposal
shall be put up by dealing officer in consultation with finance to CPA for
approval.

24.3.2 Post contract issues, during the execution of contract, which are dealt as
per the provisions of contract and approving authority for any / all such
issues are clearly spelt out in this matter elsewhere, as per ONGC
guidelines, will be dealt accordingly.

24.3.3 Levy of LD should be carried out as per provisions of contract and not
treated as a post contract issue.

24.3.4 Availing of services should be strictly as per contract provisions only. Even
in extreme operational urgency, before availing services not covered in the
contract, prior approval of the competent authority (who has approved
award of the contract in the first place) should invariably be obtained, so
that no fait-accompli cases need be submitted to management later on.

278
24.3.5 Before approval of amendments in respect of supply orders/contracts, an
analysis should be made in terms of the direct/indirect financial
implications of the proposed amendment and amendments, if any, should
be made only in full cognizance of its various repercussions. All
amendments to POs are to be invariably generated through SAP system.

(MM/10/2016 dated 23.03.2016)


24.3.6 Change in bank details of the contractor do not constitute a post contract
issue and hence change in bank details of the contractor should be
approved by CPA with the concurrence of associated Finance. However,
concerned Level-1 Executive shall have full powers to approve such cases
with the concurrence of the associated Finance.

Similarly, change in name/address of the firm also do not constitute a


post contract issue. Such request of the firm should be dealt as
provisions under Para 16.11 of this Manual.

24.4 Complaints / representations - consideration of


(MM/113/2023 dated 08.12.2023)
(MM/117/2023 dated 29.12.2023)
24.4.1 Anonymous representations received in respect of current cases should
be ignored. In case a proposal is under consideration of the BEC
Formulation Committee/ Procurement Evaluation Committee, then the
proper representation received, if any, should be commented upon by the
BEC Formulation Committee/ Procurement Evaluation Committee. BEC
Formulation Committee/ Procurement Evaluation Committee may seek
inputs/comments, if required, from Nodal Technical Agency (for cases
under CPD)/ concerned Indenting Section (for other cases) on technical
aspects.

If representations are received at a stage of tender processing not under


the purview of BEC Formulation Committee/ Procurement Evaluation
Committee, such representation shall be examined by Nodal Technical
Agency (for cases under CPD)/ concerned Indenting Section (for other
cases) on technical aspects, by CPD/Work Centre MM/Tender Processing
Group on commercial aspects and CPD-Finance/Work Centre-Finance on
financial aspects such as financial criteria, tax related issues etc. This
methodology shall also be followed for cases not falling under the purview
of BEC Formulation Committee/ Procurement Evaluation Committee.

24.4.2 Any complaint or representation received after finalisation of the case


should be examined carefully so that corrective action, if any, could be
taken in future.

24.4.3 Wherever request of a bidder for issuance of tender document is not


entertained or offer of bidder has been rejected, reasons for the same
should be disclosed, where enquiries are made by the bidder.

279
24.4.4 Due to representation(s)of bidders to various VIPs, the processing of
tender should not be stopped and such representations should be
addressed in the normal course and processing of the tender should be
continued. However, competent purchase authority of the tender should
take note of such representations to VIPs made by prospective bidders
before approving award of contract.

24.5 Delays in insurance policy

24.5.1 Delayed receipt of insurance policy in case of services and projects will be
avoided. Wherever the contractor is required to take various insurance
policies before commencement of works, it should be ensured that the
required insurance policies are taken in time and are in full force and
effective, as per the requirement of contract.

24.5.2 In case due to the delay in taking insurance policy, safety of the operations
can be affected, the operation should be stopped.

24.5.3 At the start of the project as per contract terms, wherever the responsibility
of taking specific insurance policy is from the contractor, the contractor
should take the same and provide an undertaking that the appropriate
insurance policy meets all the contract requirements. Payment for the
insurance policy should be as per terms mentioned in the contract.

24.5.5 Acceptance of various insurance policies by ONGC:

(MM/04/2015 dated 28.04.2015)

For enabling the contractors to cover all the bid requirements for
submission of insurance policies, to ensure speedy approval of the policies
by ONGC and to reduce the time taken in releasing the payment of
premium of such insurance policies, the following checklist shall be
incorporated in all bid documents of LSTK contracts:

(MM/39/2018 dated 02.07.2018)


Checklist for Insurance Policies.

Note: In addition to the list of policies indicated below, if any particular


contract requires any special / customized / specific additional
insurance cover(s), based on specific project requirement, the same
may be included in the check list by the work centre. Similarly if any of
the below mentioned policies is not specific to the contract, same may
be deleted.

1. List of Policies to be taken:

(a) Contractor's All Risk Insurance / Erection All Risks/ Storage


Cum Erection Insurance (including Offshore and Onshore
Terrorism cover). (workcentre to delete whichever not
applicable).

280
(b) Cargo Transit Insurance.
(c) Third Party Liability Insurance.
(d) Motor Vehicles Package Policy which includes Third Party
Liability.
(e) Workmen’s Compensation Insurance / Employer’s
Liability Insurance.
(f) Insurance Policy for Contractor’s Constructional Plant and
Equipment and such policy to include removal of Wreck /
debris.

Note: In cases where Contractors content that their Corporate


Policies with worldwide coverage meets the insurance
requirements of the contract in respect of Policies from (b) to (f),
Contractor needs to ensure that all the conditions mentioned in
the contract in respect of insurance are complied with.

2. Principal Assured
The following are to be included as Principal Assureds in the
Insurance Policies (except in case of Workmen’s Compensation
/ Employer’s Liability Insurance):

(a) Oil & Natural Gas Corporation Limited, and Contractor’s


name (as appearing in the bid document / NOA)
(b) Parent and/or Subsidiaries and/or Affiliated and/or
Associated and/or inter-related Companies of the above
as they are now or may hereafter be constituted and their
Directors, Officers and Employees, while acting in their
capacities as such.

3. Additional Insured
The following are to be included as Additional Insured in the
Insurance Policies (except in case of Workmen’s Compensation
/ Employer’s Liability Insurance):

(a) Any other company, firm, person or party (including


Contractors and/or Sub-contractors and/or manufacturers
and/or suppliers) with whom the below mentioned
persons have entered into written contract(s) directly in
connection with the Project:

(i) Oil & Natural Gas Corporation Limited,


(ii) Parent and/or Subsidiaries and/or Affiliated and/or
Associated and/or inter-related Companies of the
above as they are now or may hereafter be
constituted and their Directors, Officers and
Employees, while acting in their capacities as
such.
(iii) Project Managers
(iv) Contractor

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4. Waiver or Subrogation
Except for the workmen's Compensation / Employer's Liability
Insurance for workmen engaged under this contract which have been
obtained by the contractor as their Corporate policy/rules and
applicable statutory provisions, where ONGC is neither required to be
present as principal Assured or additional Assured, all policies should
have Waiver of Subrogation against Principal Assureds (as
mentioned in point 2 above) and Additional Insured (as
mentioned in point 3 above) and Contractor.

5. Location of the Proposed Project (in Contractors All Risk


Policy).

6. Project Description (Name)(in Contractors All Risk Policy).

7. Sum Insured(Physical Damage portion of Contractors All Risk


Policy).
Not less than Estimated Final Contract Value as per
NOA/Contract distributed in all currencies as mentioned in
NOA/Contract.

8. Period of Insurance(Contractors All Risk Policy)


To be valid upto scheduled completion date of contract, with
provision for an extended maintenance coverage for
Contractor’s liability in respect of any loss / damage occurring
during the warranty period.

9. Deductibles
The contractor shall take policy with minimum deductible as
prescribed for the policy (ies).
That portion of any loss not covered by insurance provided for in
this article solely by reason of deductible provision in such
insurance policies shall be to the account of the CONTRACTOR.

10. Loss Payee Clause


The Insurance Policies should mention the following in Loss
Payee Clause:
“In respect of Insurance claims in which ONGC’s interest is
involved, written consent of OGNC will be required.”

11. Compliance with Sec 25(1) of ‘The General Insurance Business


(Nationalization) Act, 1972’
Section 25(1) of ‘The General Insurance Business
(Nationalization) Act, 1972’ is
reproduced below:
“No person shall take out or renew any policy of insurance in
respect of any property in India or any ship or other vessel or
aircraft registered in India with an insurer whose principal place

282
of business is outside India save with the prior permission of the
Central Government”

The above requirement of aforesaid Act needs to be complied


with by the Contractor wherever the aforesaid provisions of Act
apply, and compliance confirmation submitted.

12. Written Notice


All Insurance Policies should provide that not less than 21 days
written notice shall be given to the ONGC by the Insurance
Company prior to any cancellation or material modification of the
Policy (ies)

13. All insurance policies should mention the following:

“Notwithstanding anything to the contrary elsewhere in the


Policy, it is understood and agreed that Insurance cover shall
apply even when the loss or damages might have occurred due
to the negligence of the ONGC, its authorized representative or
its employees or its workmen or any consultancy inspection or
Certificate Agency working for the company”

(II) Taking out various Insurance policies and payment thereof:

After the award of the contract, the contractor will be required to take
insurance policy as per the provisions of the contract and the insurance
should come into force from the date of commencement of works.

The contractor will be also required to submit a declaration along with cover
note that Insurance Policies have been taken as per contractual terms. The
milestone payment against insurance shall be restricted to 3% of contract
value for Offshore Projects and 1.5% for Onshore Projects or the amount
quoted towards milestone payment against the head ‘Insurance’ whichever
is lower. On verification of cover note with the checklist, milestone payment
of 85% of insurance amount of 3% (for Offshore Projects) / 1.5% (for
Onshore Projects) of contract value or 85% of the amount quoted towards
milestone payments against the head ‘Insurance’ whichever is lower, as the
case may be will be released. Balance 15% shall be released on
acceptance of policies in all respects by ONGC. In case the bidder quotes
for insurance charges more than 3% (for Offshore Projects) or 1.5% (for
Onshore Projects) of the contract value, then the amount in access of 3%
(for Offshore Projects) or 1.5% (for Onshore Projects) will be payable after
completion of the project in all respects and acceptable by ONGC.

24.5.6 The exact insurance policy applicable for a specific part of the service
delivery / project execution phase shall be vetted by the project in charge
before the start of the phase for which the insurance has been taken.

283
24.6 Specific issues for construction / turnkey projects

24.6.1 In case where company (ONGC) takes over certain facilities for the
envisaged objectives, which can be commissioned and can function
independently irrespective of the availability of balance work of the project,
ONGC may issue part completion certificate by taking over such facilities. LD
on such taken over facilities, if any, shall be calculated till the date of taking
over those facilities.

24.6.2 Where such facilities cannot be commissioned and cannot function


independently, LD in that event will be levied on full value of the project.

24.6.3 In the case of LSTK/EPC contracts, where the contractor is responsible for
the insurance policy, the insurance policy shall be approved by Level I officer
of the work centre.

24.6.4 In the case of LSTK/EPC contracts, where a change of vendor is needed,


such approvals shall be accorded by Level I officer of the work centre.

24.6.5 In the case of LSTK/EPC contracts, planning package which includes


DCI/MCI/billing breakup/S-curve etc. will be approved by concerned Level 1
officer of the work centre.

24.7 Management of Hazardous Chemicals/Materials

24.7.1 The following clause will be incorporated in all future tenders for
procurement of hazardous chemicals:

"The bidder will specify material storage data system (MSDS) Standard
specification like size, colour, and letters of the packing will also be
specified."

24.7.2 Personnel, handling such chemicals should be trained for identifying colour
codes and symbols and other safe handling practices

24.7.3 Separate areas should be designated for storage of hazardous chemicals and
clear instructions regarding storage practices should be given

24.7.4 All personnel handling hazardous-chemicals should be provided with


Personnel Protective Equipment (PPE). Provisions should be made in the
contract for providing PPE by the contractor to the people working with
hazardous chemicals In case, contractor is not able to provide PPE of ONGC
specification, ONGC should provide it at the contractor's cost.

24.7.5 All the personnel handling hazardous chemicals will be given First aid training.

24.8 Dispute Resolution through Outside Expert Committee

(MM/21/2016 dated 29.12.2016)


(MM/44/2022 dated 06.10.2022)
(MM/118/2024 dated 11.01.2024)

284
The cases for Resolution of disputes through conciliation by OEC shall be
processed as per the guidelines issued vide circular No. (02/2024 dated
11.01.2024), as may be amended from time to time.

While signing the Contract, detailed guidelines on OEC issued by Chief Legal
Services vide circular No. DLH/Mediation-Manual/OEC Guidelines/2023 dated
08.12.2023 (as amended from time to time), shall be attached.

24.9 Optimum drawl of Barytes to meet operational exigencies

24.9.1 Work Centers should plan their requirement and convey the same to MM
Department at Chennai who coordinate the despatch of Barytes from the
suppliers well in advance so as to avoid a stock out situation. It is further
emphasised that all the Work Centers may please ensure that enough stock is
maintained to cover the lead time requirement also to .meet the emergencies
of operation and safety

24.10 Determination of CPA for extension of existing contract awarded on


nomination basis

24.10.1 In cases awarded on nomination basis, where the services are required to be
continued from the same contractor, after expiry of the contract, then the
following guidelines should be adhered to meticulously:

(i) The fresh award of contract on the existing contractor shall be treated
as a separate contract on nomination basis and the instruction prevailing
w.r.t. award of contracts on nomination basis shall be followed.

(ii)The CPA for approval of any such cases would be determined as per
the BDP based on value of individual contract.

(MM/41/2018 dated 10.09.2018 & Corrigendum dated 24.09.2018)


(iii) However, if the contract which is due to expire was awarded on
nomination basis and further contract is also to be awarded on the same
agency on nomination basis, the value of such contract should be added
to determine the CPA. However, under the following conditions (in respect
of services), CPA shall be determined based on the value of each such
individual contract:

i) Cases pertaining to AMC/Services from OEM/OES.


(MM/112/2023 dated 30.11.2023
ii) For cases where prior approval of concerned L-1 has been obtained
detailing the justifications, that such case is of deemed proprietary in
nature as such services are required to be obtained from same service
provider only, for resorting to nomination on continuous basis. Such
approvals shall be valid only for a period of three years. For further
continuity of such services, the prior approval needs to be obtained afresh
from concerned L-1 which again shall be valid for three years.

285
In cases pertaining to procurement of goods each supply order which is
placed even on nomination basis should not be clubbed with other past
orders placed on nomination basis for determining the CPA.

(v) In cases where contract for hiring of more than one unit
(vessels/rigs/vehicles/equipment, excluding vehicles/equipment of
general nature) of same category from one bidder have been awarded by
entering into multiple contracts on nomination basis any one of these
multiple contracts is also to be awarded on the same agency on
nomination basis, the value of such contract should be added to the
cumulative value of contracts awarded on nomination basis to determine
the CPA.

24.11 Deployment of manpower by the contractor

Wherever deployment of manpower is involved, it should be ensured that


the contractors deploy the manpower having requisite qualification as per
the terms of the contracts. Further, the actual deployment of the personnel
for the job should not be less than the contractual requirement. All
concerned should closely monitor these aspects for compliance with the
contractual requirements during the execution of the contract.

286
25 Pre-tendering and tendering process for Proprietary articles

25.1 Definition of proprietary articles

25.1.1 This process should be used for OEM spares, OEM services, OEM standby
capital items (where proprietary article certificate for the specific item has been
made and the item is to be used as an alternate / backup to existing systems /
items), proprietary chemicals and other items and services of proprietary
nature. However, no Proprietary Article Certificate (PAC) is required for OEM
Spares, Standby equipment and accessories which form part of the main
equipment.

25.1.2 Articles / Services which are given PAC should be on the basis of their
functional requirement. Declaration of an item as proprietary will be done with
the approval of competent authority as per BDP. Accordingly, for such
purchases of proprietary items from single source, Indenter shall provide copy
of approval for procurement of an item as ‘Proprietary item’ along with indent.

25.1.3 Features of the model / version of the products are regularly upgraded by the
manufacturers. Similarly, new products and new technologies are being
introduced very frequently and the market conditions are likely to vary at
different point of time. Therefore, the approval for purchasing an item as
proprietary article should be obtained separately on each occasion of its
purchase.

Accordingly, for such purchases of proprietary items from single source, Indenter
shall provide a ‘Proprietary Article Certificate’ (PAC) along with indent, as per
following format:

PROPRIETARY ARTICLE CERTIFICATE (PAC)

(i) The required item(s) (i.e.…………………………*) is/are manufactured only by


M/s................................................................. and no other make is acceptable as
substitute for technical reasons. (*Wherever specific model / brand is required,
the same should also be specified).

(ii) Approval of competent authority, as per item ………..** of BDP-2015 (as


amended from time to time) has been obtained for purchasing the required item(s)
as a proprietary article. (** indicate relevant BDP item).

(Signature)
Name and Designation……………..
Date:
Place:

25.2 Procurement Process

287
(MM/10/2016 dated 23.03.2016)
(MM/114/2023 dated 20.12.2023)
25.2.1 Tender opening date for procurement of OEM Spares/ OEM Services/PAC
items and tender on nomination basis should be fixed and opened immediately
by the tender opening officer from Tender Processing Group and Finance.
However, in case bids are received before or after closing date of tender, the
same should be opened as and when received without any approval.

25.2.2 Quantity requirement for specific item required will be made once requirement
is identified by concerned work centre.

25.2.3 Approval on the quantity to be ordered is obtained from the competent


authority in individual assets (wherever the request is being generated)

(MM/26/2017 dated 21.06.2017)


25.2.4 The unit cost estimation will be done as per para 4.4.

25.2.5 Indentor shall ask the OEMs (can be done over email) to intimate details of
their nominated dealer/ distributor/ supplier(for supply), authorized agency
/service center/ service provider(for services) as the case may be
(authorisation to be valid at least for a period of one year from the date of
intimation), for supply to India. The OEM will also be requested to notify to
ONGC (through an undertaking) of any change occurring in Authorised
Distributors during the period of one year.
(MM/114/2023 dated 20.12.2023)
25.2.6 Tender Processing Group will then send the enquiries to all the nominated
dealer/ distributor /supplier (for supply), authorized agency/service center/
service provider(for services) as the case maybe so intimated by OEM,
including the OEM.
Besides OEM and their nominated dealer/distributor/supplier (for supply),
authorized agency/service center/ service provider (for services), OES
(Original Equipment Supplier), can also be considered as an authorized
source of supply, if they supply directly and not through any other agency.

25.2.6.1 When the OEM confirms of not having any nominated


dealer/distributor/supplier(for supply), authorized agency/service center/
service provider(for services) as the case may be or do not respond to our
request for sending us details of its nominated dealer/ distributor/
supplier(for supply), authorized agency/service center/ service provider (for
services), enquiry may be sent to OEM only.

25.2.7 The original PR is modified with the price quote and administrative
approvals and sanctions need to be taken for this modified PR.
(MM/113/2023 dated 08.12.2023)
25.2.8 Procurement Evaluation Committee shall be formed on the basis of value
of price quote received against the single tender enquiry.

25.2.9 (MM/10/2016 dated 23.03.2016) – Deleted –


(MM/85/2023 dated 27.02.2023

288
Repair/revamping of equipment should also be got done preferably through
OEM or their nominated dealer / distributor / supplier (for supply), authorized
agency / service center / service provider (for services) / OES (Original
Equipment Supplier) as per para-25.2.5 and 25.2.6. In the event OEM or their
nominated dealer / distributor / supplier (for supply), authorized agency /
service center / service provider (for services) / OES (Original Equipment
Supplier) is not willing to undertake repair / revamping of the equipment, the
other modes of procurement may be resorted to.

25.2.10 – Deleted –

25.2.11 Reasonability:

Wherever OEM / OES / nomination cases are allowed to be processed without


formal cost estimation (but placement of order after obtaining proper
expenditure sanction), reasonability of quoted prices will be ascertained with
respect to LPR / international published price (if available). The age of LPR
along with suitable adjustment (upward or downward) shall be as per
provisions of para no.4.2.4 & 14.1.4 and shall be considered for comparison.
For items whose LPR / international published prices are not available, trend
of quoting such rates compared to rates quoted for items where LPR is
available may be considered in determining reasonability quoted prices.
Further, justification from bidder may be sought for quoting such price, if
required.

(MM/37/2018 dated 29.05.2018) (MM/50/2019 dated 04.07.2019)


(MM/112/2023 dated 30.11.2023)
(MM/113/2023 dated 08.12.2023)
(MM/114/2023 dated 20.12.2023)
25.2.12 Negotiation: Procurement Evaluation Committee shall conduct negotiation with
prior approval of L-1 executive.

The entire process of negotiation has to be concluded within a period of seven


working days from the date of approval and a decision needs to be taken based
on the reply received from the bidder post negotiation

In case the Work Centre wants to continue the negotiations further beyond
seven working days, specific approval of the Competent Purchase Authority
for each additional round of negotiation should be obtained (full powers to
concerned L-1) providing detailed justification/exception for continuing the
negotiation further.

(MM/26/2017 dated 21.06.2017)


(MM/112/2023 dated 30.11.2023
25.2.13 Post Contract Modifications: All post contract modifications shall be approved
by CPA on the recommendation of Procurement Evaluation Committee.
Concerned L-1 shall have full power in this regard.

289
For the cases valuing below Rs. 10 lakhs not falling under purview of
Procurement Evaluation Committee, a committee of minimum E2 level
executives consisting of Indentor and Finance members shall examine the post
contract issue and put up its recommendations for approval of CPA. .

25.3 Standard Terms and Conditions

25.3.1 Standard terms and conditions as defined in model tender document for OEM
spares should be used.

25.3.2 In case an OEM insists on inclusion / deletion of a specific clause, the terms
and conditions can be modified. However, any exception/ modification should
be approved by concerned L-1. Best Price clause shall be included in the terms
and conditions.

25.3.3 Best Price clause is a guarantee from the OEM that the price for the specific
part number is the best among the prices it offers to its other customers for that
specific part number. In case the OEM provides the item to a different customer
at a lower price, the appropriate discount should be passed on to ONGC at a
later stage (either at the time when the item is being sold to the other customer
or adjusted against the price for the next purchase of an item by ONGC from
the same OEM).

25.4 Other conditions

25.4.1 Updated list of spares prices from OEMs shall be maintained within internal IT
system. This list should be updated whenever the OEM updates their prices
(may require updation every 6 months - 2 year period). Having this updated list
will prevent the need to use LPRs and also ensure that cost estimates (when
not using OEM BQs) are accurate

(MM/26/2017 dated 21.06.2017)


25.4.2.Irrespective of the type of tender whether single or limited, procurement from
OEM shall be treated as procurement on single tender nomination basis from
OEM/OES and CPA will be decided accordingly.

25.4.3 – Deleted -

25.5 In all cases pertaining to procurement of OEM spares, standby equipment from
OEMs and the procurement carried out on ‘PAC’ and ‘Nomination’ basis,
following confirmations shall be obtained prior to award of contract/order:

(i) The prices quoted by them for the items of same specifications are not
more than what they charge to other customers. In the cases where
OEM certifies that they do not market their products directly, but only
through authorized distributor and have only one authorized distributor
worldwide, ONGC should accept the required confirmation given by the

290
sole global authorized distributor of OEM to the effect that the prices
quoted by them for the items of same specifications are not more than
what they charge to other customers.

(ii) Wherever OEM/OEM’s authorized distributor does not accept ONGC


tender terms and conditions or takes any exception / deviation, a
certificate should also be obtained from them that the terms and
conditions offered to ONGC are at par with those offered to other
customers worldwide.

291
26 Shifted to 21.6 (MM/47/2019 dated 31.01.2019)

26.1 Procurement process – (Shifted to 21.6)

292
27 e-procurement

(MM/124/2024 dated 16.04.2024)


27.1 The process for approval of BECs, Evaluation matrix etc. will take place as per
existing process. After due approval, all tender documents will be prepared
and duly uploaded by the dealing officer for invitation of e-tender in
GePNIC-CPPP (https://etenders.gov.in) after affixing the Digital signature with
encryption as per the IT Act, 2000. The e-tender number shall be created in
SAP system appropriately and used as tender reference number while
creating the e-tender in GePNIC-CPPP.

(MM/50/2019 dated 04.07.2019)


(MM/124/2024 dated 16.04.2024)
27.2 The Invitation to Bid (Notice Inviting tender) in respect of all tenders of value
more than Rs 10 lakhs shall be published on GePNIC-CPPP
(https://etenders.gov.in). Bidders are required to have GePNIC User ID
and Password for downloading Tender Documents, by registering
themselves on GePNIC Site (https://etenders.gov.in). Tender Documents
may be downloaded by any interested bidder free of cost. For access in
GePNIC site, a valid Class III digital signature of the authorized person of
the agency is a pre-requisite.

(MM/26/2017 dated 21.06.2017)


27.3 – Deleted -

27.4 – Deleted -

27.5 – Deleted -

27.6 – Deleted -

27.7 – Deleted -

27.8 In the Invitation to Bid published on the website, the name, designation and e-
mail address of the designated Administrator who is to be contacted by bidders,
as nominated by concerned In-Charge (MM) for the particular tender, should be
indicated.

293
(MM/26/2017 dated 21.06.2017)
(MM/113/2023 dated 08.12.2023)
(MM/116/2023 dated 27.12.2023)
(MM/124/2024 dated 16.04.2024)
27.9 It shall be mandatory that all bidders participatina in e-tenders should submit
bids only in e-form. Work Centre shall prepare Price Bid Format using BOQ
(Bill of Quantity) Templates available on GePNIC-CPPP. This would enable
system generated comparative statement of prices in GePNIC-CPPP.
Under exceptional circumstances, where it is not feasible to adopt BOQ
Template available on GePNIC-CPPP for preparation of price format,
approval of concerned L-1 executive shall be obtained with due
justifications at the time of seeking approval of invitation of tender by
MM/TPG/CPD. Bidders shall necessarily use the same excel sheet and only
Unit rates and applicable taxes shall be filled in by the bidder. Mathematical
calculations of multiplications and additions shall be computed by the system
itself and cannot be manually entered by the bidders. Compliance to this effect
shall be sought in the bid matrix. Compliance/ confirmation for pre-qualification
criteria and technical / commercial BEC should be insisted in e-form only. Only
any specific third party document insisted in Originals as per tender condition
received through DAK or Tender Box or tender receiving officer along shall be
accepted in physical form in sealed covers. On due date and time, e-tenders
shall be opened by concerned Dealing Officer. The physical documents, if any,
shall be opened by designated Opening Officers from MM/CPD/TPG and
Finance. Physical documents of only those bidders shall be opened who have
submitted bid through eportal. For submitting the bids, the vendors will also
require digital signature. The system shall assist in evaluation of bids by
providing price comparisons and other relevant reports. All such reports should
be uploaded in DISHA portal while obtaining approval of CPA.

27.10 After finalization of tender, the purchase orders will be issued through SAP – R3
system.

27.11 Other provisions of MM Manual and Instructions issued from time to time shall
be followed by all concerned, as in case of non e-procurement tenders.

27.12 Implementation of e-procurement

(MM/19/2016 dated 23.09.2016) (MM/26/2017 dated 21.06.2017)


27.12.1 e-procurement is to be used across ONGC for all cases of procurement of
materials, services and turnkey contract exceeding tender value Rs. 5 lakhs.
(MM/112/2023 dated 30.11.2023

294
27.12.2 However, in case it is felt by a work center not to resort to e-procurement
method of tendering for cases exceeding Rs. 5 Lakhs, approval of concerned
L-1 would be required. However, such exemption should be bare minimum
and exemptions should be sought only in those cases wherein it is extremely
difficult to go for e-procurement.

(MM/42/2018 dated 04.10.2018)

27.12.3 In case it is felt by a work center to resort to e-procurement method of tendering


for cases below Rs. 5 Lakhs, approval of L-1 would be required. However such
approval shall not be required in case of procurement through GeM.

27.12.4 However, if it becomes necessary to dispense from thee-procurement mode


after invitation of tender, then tender would have to be re-invited by following
the provision for re-invitation of tenders as per Clause 14.3 of MM Manual,
because the process of tenders being invited in the e-procurement mode is
different from tenders being invited under normal tendering procedure

(MM/42/2018 dated 04.10.2018)


27.12.5 All cases for procurement of materials / services on single tender nomination,
Board purchases and purchases against ONGC Rate Contracts shall be
exempted from e-procurement.

27.13 Bid Return Procedure

27.13.1 The duly completed bid with no system error message can be ‘submitted’ in e-
procurement portal any time before the submission deadline is reached. The
bidder shall also be permitted to make changes in his bid and re-submit the
same in e-procurement portal till the submission dead line. The final submitted
version of bid only shall be considered by ONGC.

27.14 Familiarization/training of vendors

All the bidders have access to online help document which is available on e-
portal. This help document should be used by them for participating in e-
procurement tenders.

27.15 The due date and time for price bid opening should be intimated well in advance
to the bidders, through the System.

295
296
28 Procurement of Premium Bits on “Consignment basis” and through out
right purchase (Rate Contract)

28.1 Special conditions of procurement process

(MM/62/2020 dated 02.12.2020)


28.1.1 Procurement of Bits should be on the basis of QCBS tender through ICB bids. The
weight of quality /technical content in the overall bid selection criteria can be as high
as 100%.

Bits shall be procured under following two categories:

(i) Uncommon and special premimum bits shall be procured on “Consignment Basis”.
(ii) Premimum bits required for regular and routine usages shall be procured through
Rate Contract model.

Chief Drilling Services shall develop suitable mechanism to ensure that there is no
built-up of inventory of premimum bits.

(MM/15/2016 dated 05.07.2016)

28.1.2 Estimated annual off-take shall need to be indicated in the Invitation to Bid and
tender document so as to enable the bidders to get an idea of the volume of
expected business at the time of bidding. Estimated initial order quantity,
separately for nominated blocks or NELP/ other eligible Block for petroleum
operation, shall also be indicated in the tender documents.

28.1.3 As only one bid i.e. ranked # 1 shall be considered for award of contract, the
Competent Purchase Authority shall be determined as per the BDP in case of
Single Tender,

28.1.4 The inspection of bits shall be carried out by ONGC or an ONGC appointed
representative after receipt of bits in India.

28.1.5 For assessing the reasonability of prices, bidders may be asked to submit
documents establishing the prices at which the bidder has supplied same or
similar type of bit to other Indian PSU Oil / Gas company in last 2 years. Also,
Best Price Clause can be included in the GCC.

(MM/62/2020 dated 02.12.2020)


28.1.6 Bidder should submit price bids separately for each “Type and Size of bits” ,
as per the following:

1. 17 1/2" TCR bits.


2. 12-1/4” TCR bits.
3. 8-1/2” TCR bits.
4. 6” TCR bits
5. 17-1/2" PDC bits
6. 12-1/4” PDC bits
7. 8-1/2” PDC bits

297
8. 6” PDC bits

Bidder can quote for minimum one “Type and Size of bits” and maximum eight
“Type and Size of bits” as per above details. Bits are required for Petroleum
Operations/ NELP areas. Bidder has to quote for all work centre of ONGC (as
per the list attached) of the quoted Type and Size of bit.

Since features of the bits for any particular size and type are different for
different bidders, bidders to furnish details of the bits in the format as per
Annexure-…..(work centre to indicate Annexure No. and enclose the same).

Bidders to submit size and type wise (TCR & PDC) bit details in the format s
pecified (Bit Format-TCR and Bit Format-PDC / Bi-Centre / Impreg / Others)
for evaluation purpose in technical bid. Bidders to mention any additional
feature & its advantage against each type of bit in that same format. Based on
these information furnished in the bit format for each size and type of bits,
nearest common bits will be identified and the list of such bits for each size and
type shall be made before price bid opening.

ONGC’s decision on selection of nearest common bits will be final and will be
informed to shortlisted bidders, before price bid opening.

Primarily size & IADC (for TCR only) will be matched. Common design features
will be matched next against bits nomenclature of shortlisted bidders of each
category. If minimum eighty percentages (80%) of design features as per bit
format is matched, it will be considered as common bit.

28.1.7 Contract duration shall be 3 years from the date of notification of Award of Rate
Contract, without any provision for price escalation and also without any
provision of extension of the contracts.

(MM/62/2020 dated 02.12.2020)


28.1.8 Supplier shall mobilize the initial quantity within 35 days of placement of S.O.
Subsequent call-out orders shall be placed by the authorized representative of
ONGC, as and when required. Such call out quantity has to be delivered within
15 days of issue of call-out order.

28.2 Payment Process

28.2.1 Invoice shall be raised by supplier on monthly basis for bits consumed
during the month and the bits retained by ONGC at the end of contract
period

There shall be no minimum guaranteed off-take by ONGC. Payment shall be


released by ONGC only for the actual quantity consumed or retained beyond
06 months by ONGC as per contract provisions.

28.2.2 Quantity for which payment shall be made to the supplier should not
exceed the ordered quantity.

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28.3 Other provisions

28.3.1 Other provisions of MM Manual and Instructions issued from time to time shall
be followed by all concerned, as in case of other tenders.

28.4 Evaluation procedure

28.4.1 Evaluation of offers will be based on the “Criteria for Ranking of Bidders” and
“Details and Documents to be submitted for evaluation of Bits”, as per
Appendix 9 and 10 of this manual.

(MM/62/2020 dated 02.12.2020)


28.4.2 Two Bids System shall be followed in the Price Bid and bidder shall submit the
price list of the offered products. The price list shall cover the sizes required by
ONGC for TCR & PDC bits under their product range. Bidder shall submit
separate sealed price covers for each size of Bits, say 17 ½”, 12 ¼”, 8 ½” &
6”. For any other sizes Appendix9&10 will be framed by Bit Committee [as
constituted by Director (T&FS)] on requirement basis.

28.4.3 After techno-commercial evaluation, the price bids of the top three highest
technically ranked bidders (i.e. TR-1,TR-2 & TR-3) for each size and type of
bit will be shortlisted for price bid opening subject to obtaining minimum of 45
marks as per evaluation criteria indicated at clause ……….(Clause no. to be
indicated by wortkcentre) of BEC. In case of tie in highest technically ranked
bidders who are obtaining same marks, their inter-alia ranking as TR-1, TR-2
& TR-3 and so on ) will be decided on the basis of highest marks in “B” in
respect of specific information as per the evaluation criteria specified at
Appendix-9.Top three bidders above 45 marks are to be selected for price
bid opening against each size & type

28.4.4 The following methodology will be followed for finalization of contracts:

In case TR-1 happens to be the L 1 bidder in a category , 100% quantities


for the common items will be awarded to him and in case a bidder other
than TR-1 happens to be the L 1 bidder, 60% quantity will be awarded to
L1 bidder and remaining 40% quanti ty will be awarded to L2 bidder subject
to matching of rates with L 1 bidder. Further, in case L2 bidder does not
match, L3 bidder will be asked to match the L1 rate and if none of the
bidders agree to match the L1 rate, 100% quantity will be awarded to
the L1 bidder. However, ONGC reserves its right to negotiate the prices with
the bidder for ascertaining rate reasonability before award of contract.

DS, MR will monitor the orders placed by various Work Centres and in co-
ordination with the Work Centres, they will ensure that quantities are
distributed in the ratio as per the RC.

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29 Procurement of items on High sea sales basis

29.1 Introduction

(MM/15/2016 dated 05.07.2016)

29.1.1 The procurement of specified goods under Sl.No. 357A of N/N 12/2012-
Customs dated 17.03.2012 (as amended by N/N 12/2016-Cus dated
01.03.2016), on payment of Zero Customs duty for petroleum operation can
also be availed for the goods which are not imported directly by ONGC but
through an Indian Supplier on High Sea sales basis who imports the goods
from his Foreign Suppliers provided statutory government guidelines are
followed (i.e. condition of customs notification and procedure of High Sea
Sale). In High Sea sales transactions, the title of goods passes on to ONGC
before the goods cross the Indian Customs barrier. The Bill of Lading/ Airway
Bill are endorsed in the name of ONGC by the Indian Supplier and Bill of Entry
is filed in Customs in the name of ONGC.

29.1.2 Further, no Central Sales tax/ VAT is applicable for High Sea Sales
Transactions. The benefit of High Sea Sales (w.r.t. central sales tax/ VAT) can
therefore be availed for Non PEL/ML areas also when ONGC is not in a
position to import the material directly. However, it should be ensured that
statutory government guidelines are followed. Orders on High Sea Sales basis
should be placed only on such domestic firms who are the OES (Original
Equipment Supplier) or the subsidiaries / Joint Venture companies /
Authorised Dealers / Distributors / stockists of OEM. Procurement on High
Sea Sales shall not be done from the Indian agent/consultant/ representative/
retainer/ associate of the foreign suppliers. This should be done only when
ONGC cannot import the material directly. Such procurement on High Sea
Sales basis would normally be applicable for OEM spares / PAC items where
the foreign supplier is not willing to sell directly to ONGC.

Process for effecting High Sea Sales

29.1.3 In High Sea Sales transactions, the Indian Supplier endorses the Bill of Lading
or Air Way Bill in the name of ONGC before the goods cross the Customs
barrier and customs clearance would be carried out by ONGC, T&S.

29.1.4 The Supply order should be placed on the Indian supplier by the concerned
work centres of ONGC on High Sea sales basis

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29.2 Terms of Purchase – On High Sea Sales Basis

29.2.1 The supply order will be placed on Indian supplier at a total price inclusive of
C&F value of the foreign supplier and the Marine Transit insurance cost, which
is to be arranged by the Indian supplier on warehouse-to-warehouse basis.
The C&F and the insurance cost mentioned above will be indicated in the
supply order. The Indian Supplier should arrange for despatch of goods from
the foreign Supplier, freight paid, through his freight forwarder and duly insured
(Marine Transit Insurance) on warehouse-to-warehouse basis, all included in
the CIF (Indian Port) cost, which will be indicated in the supply order.

29.2.2 The freight forwarder/supplier should inform the concerned port consignee and
the MM department about the despatch and arrival of cargo.

29.2.3 Immediately on shipment of the material from the foreign port, the Indian
supplier should send to the concerned MM department, the original High Sea
Sales agreement (as per the format enclosed at Appendix 1), duly signed by
the Indian supplier on the date after the cargo is despatched (and well before
it crosses the Indian customs barrier). The Indian supplier should also endorse
the Bill of Lading/ Air Way Bill in the name of ONGC when the material is in
transit/ on High Seas.

29.2.4 Indian supplier should also simultaneously; send a copy of the non-negotiable
set of the documents referred in 29.3.8 below, to concerned MM and finance
sections.

29.2.5 Indian supplier must ensure that the freight forwarder provides a non-
negotiable copy each of AWB/Bill of Lading, Invoice of foreign supplier and
detailed packing list of the foreign supplier, to the Port Consignee, well before
the arrival of cargo at the port of discharge

29.2.6 The concerned MM section should sign the original High Sea Sales agreement
so received from the Indian supplier, on a date after the cargo is despatched
but before it crosses the Indian customs barrier and send the same to T&S
section.

29.2.7 Respective ONGC Work Centre will expeditiously obtain Essentiality


Certificate through DGH, wherever applicable, and forward the same to T&S
for clearance, under intimation to MM.

(MM/26/2017 dated 21.06.2017)


29.2.8 The Indian supplier should also forward, without delay, the following negotiable
set of documents through bank for payment by the concerned finance
department:

a. Original invoice of the foreign supplier either on Ex-works or FOB or C&F


Value, raised on the Indian supplier.

b. Original invoice of the Indian supplier raised on ONGC.

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c. Negotiable copy of the Bill of Lading/ Air Way Bill duly endorsed in the
name of ONGC.

d. Letter in duplicate by Indian supplier on their letterhead addressed to


customs/ octroi agreeing for sale of goods to ONGC on high sea sales
basis.

e. Importer-Exporter Code of the Indian Supplier

f. Detailed packing list of the foreign supplier, relating to Bill of Lading/AWB


referred at (c) above.

29.2.9 EX-works or FOB or C&F value of the foreign suppliers at (a) and invoice
value of the Indian Supplier as at (b) should be clearly indicated in the PO
itself, after assessing the reasonability of (a) and that of the difference in
(b) and (c) during the finalization of the order by ONGC.

29.2.10 Concerned finance department at work centre shall expedite the release of the
negotiable set of documents from bank without any delay and forward the
same to concerned T&S department.

29.2.11 The supplier should ensure that various formalities as stated above and the
documents as stated above are forwarded in time to ensure release of
documents from the bank without any delay so as to avoid demurrage. In case
of unavoidable delays on the part of the Indian supplier, the Indian supplier
must instruct his freight forwarder to issue the delivery order to T&S, ONGC
without insisting for the negotiable set of documents. Any demurrage /
penalties on account of delays by the Indian supplier in forwarding negotiable
set of documents duly endorsed in the name of ONGC shall be borne by the
Indian Supplier.

29.2.12 The Indian supplier must instruct the freight forwarder to release the
consignment to ONGC, once the documents are negotiated through bank,
without insisting for production of bank documents. In case demurrage is
incurred due to the failure of supplier to do so, the same shall be recovered
from the supplier.

29.2.13 After clearance of the goods by T&S, ONGC, transport of goods upto the
ONGC destination should be arranged by T&S Section, ONGC, as per the
terms of the order.

29.2.14 The concerned Finance must ensure that the Exchange Control copy of Bill of
Entry is provided to the Indian Supplier on receipt of the same from T&S officer.

29.2.15 The MM Officer concerned must ensure that Finance Department at the Work
Center expedites the release of Negotiable documents from Bank and same is
forwarded by Finance to T&S without any delay.

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30 Rate Contracts through IMPETUS

30.1 Introduction
(MM/113/2023 dated 08.12.2023)
30.1.1 IMPETUS project is mandated to enter into rate contracts through Central RC
& Empanelment Group of CPD for supply of spares of equipments. For
entering into rate contract for supply of spares, preference will be given in the
following order:

1. Original Equipment Manufacturer (OEM)


2. Packager of the equipment/system
3. Original Equipment Supplier (OES)

Rate Contract should be preferably entered with OEMs/ Packager/OES (in that
order of preference) only. In case OEM/Packager/OES is not willing to enter
into rate contract, the OEM/ Packager/OES is asked to nominate single
authorised agency/firm (even in case of multiple sources) and Rate Contract
shall be entered with such authorised firm only.

30.2 Definition

30.2.1 Original Equipment Manufacturer (OEM)

OEM of equipment is the one who manufactures the unit. Such OEMs are
responsible for the performance of the equipment manufactured by them as
per design parameters and give warranty and guarantee accordingly

30.2.2 Packager

The Packager is the one who designs and packages the complete System/Unit
after sourcing various equipment from different OEMs/OESs. Such Packager
is responsible for Warranty / Guarantee for satisfactory performance of the
complete system/unit inclusive of all the equipment manufactured by different
OEMs and installed in the System / Unit. The Packager/System Manufacturer
may also manufacture some of the equipment by himself

30.2.3 Original Equipment Supplier (OES)

OES is the Original Equipment Supplier of equipment / major assembly/ sub-


assembly/ components outsourced by OEM/Packager

30.3 Selection of equipment

(MM/05/2015 dated 01.06.2015)

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30.3.1 Rate contracts will be concluded for supply of spares for all critical equipment/
systems installed on offshore/onshore Installations/ facilities/ rigs, including
imported spares for imported equipment such as drilling equipment, mechanical
equipment, Electrical spares and spares for instrumentation equipment, which
are related to Onshore Drilling and Well services

However, the spares for which no IMPETUS rate contract exist shall be procured
by the work centers themself.

30.3.2 In case of any other equipment which has spares consumption more than
Rs 50 lacs annually, the equipment can be brought under umbrella of Rate
Contracts
(MM/113/2023 dated 08.12.2023)
30.3.3 Head lmpetus in consultation with CPO will finalize the equipment for
entering into Rate contract for supply of spares

30.4 Price basis

30.4.1 The firm identified for supplying of spares will have to submit the bid in
either of the following:

1. The firm has to offer international price list mechanism with a provision
of periodical price revisions with suitable discount and the rate contract
shall be entered based on this price list with agreed discount

2. In case the rate list offered by the firm is offered price list but not the
International price list, the rates are to be firm for a minimum period of one
year with provision of annual price revision. The rate contract shall be
entered based on the annual price list with agreed discount

30.5 Rate reasonability

30.5.1 In case LPR is available, then LPR with suitable adjustment (upward or
downward) as per provisions of para no.4.2.4 & 14.1.4 will serve as the
basis for rate reasonability for the international price list or offered price
list. However, wherever LPR is not available, Procurement Evaluation
Committee shall be empowered to deliberate/negotiate on the rate
reasonability

30.6 Annual Off take

30.6.1 The off take for the purpose of entering into rate contracts shall be based
on the annual average consumption of spares during last three years or
considering the future requirement based on planned maintenance
activity. In case the rate contract is entered into for spares of new
equipment, consumption based on OEM recommendation/Users’
feedback may form the basis for Off take

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30.7 Period of Rate Contract

(MM/22/2017 dated 27.02.2017)


30.7.1 The Rate contract shall be entered preferably for a period of three/five
years

Notwithstanding the above, contract shall have provisions that ONGC


reserves the right to enter into fresh contract for a further period of
three/five years on the mutually agreed rates and on the same terms and
conditions, including modifications, if any with mutual consent.
Prior to exercising each provisions of option for a fresh rate contract,
IMPETUS Project shall assess the necessity of rate contract and seek
administrative approval of L-1 authority for entering into fresh rate contract
with the same Contractor.

The CPA for approval for entering into fresh contracts in such cases shall
be as per BDP based on the estimated value of rate contract for the
proposed period only.

30.8 Nodal agency


(MM/113/2023 dated 08.12.2023)
30.8.1 Nodal Technical Agency for IMPETUS Rate Contracts shall be IMPETUS
Group and all the procurement related activities for these Rate Contracts
shall be handled by Central RC & Empanelment Group of CPD. All Rate
Contracts shall be uploaded in ICE by IMPETUS Group. The updation of
price list in the contract shall be the responsibility of IMPETUS group/
Central RC & Empanelment Group of CPD.

30.9 Clarifications

30.9.1 The clarifications (commercial & technical) shall be sought by the


concerned Dealing Officer of Central RC & Empanelment Group of CPD
with the approval of Head MM-CPD based on commercial evaluation by
MM and technical evaluation by Technical Section of IMPETUS.

30.10 Negotiation

(MM/22/2017 dated 27.02.2017)


(MM/112/2023 dated 30.11.2023
30.10.1 Procurement Evaluation Committee shall conduct negotiation including
discussion on pending exceptions/deviations to terms and conditions, if
any, with prior approval of CPA. The L-1 officer shall have full powers in
this regard.

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30.11 Post Contract Modifications

30.11.1 All post contract modifications in the rate contract that inter-alia include
price revision, addition/deletion of spares from the price list shall be
approved by - Competent authority as per BDP on the recommendation of
Procurement Evaluation Committee subject to satisfying the following
conditions:

(i) Procurement Evaluation Committee certifying price reasonability.


(ii) OEM furnishing an undertaking / certificate that prices charged are not
higher than those charged to other customers.

30.11.2 The CPA for the purpose of approval of post contractual modifications
shall be the same authority, who has approved the award of rate contract.
Purchase Orders against the concluded Rate Contracts shall be placed by
concerned Indenting/User Section of the Work Centre, without MM
support.
Any amendments specific to a Purchase order shall be done by the
concerned work centre with the due approval of competent authority
based on the order value
CPA will be empowered to approve Post contract issues. Concerned L-1
shall have full powers in this regard. (MM/112/2023 dt. 30.11.2023)

30.11.3 Tender for Rate Contract for procurement of Spares should preferably
take place through e-procurement mode. Tender opening date for
procurement / rate contract of items should be fixed. However, in case
bids are received before closing date of tender, the same should be
opened by the dealing officer without any approval. In case no offer is
received upto on or before submission date, the dealing officer shall take
up the matter with bidder and extend the submission date after seeking
approval of concerned In charge-MM

(MM/10/2016 dated 23.03.2016)


In case an OEM insists on inclusion / deletion of a specific clause, the
terms and conditions can be modified. However, any exception/
modification should be approved by Concerned Level-I.

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31 Business Development and Joint Venture opportunities

31.1 Introduction

31.1.1 ONGC is pursuing “Business Development& joint Venture (BD&JV)


opportunities” in the field of petrochemicals, power, renewable energy,
fertilizers, LNG etc in India and overseas. This requires engagement of
Financial, Technical, Legal and Tax & Accounting consultants/advisors for
evaluation of opportunity from technical, commercial and legal point of view.
The consultants are required to be engaged in a compressed time frame so
that ONGC is able to finalise the bidding parameters for the opportunity in a
time bound manner, therefore, necessitating formulating a procedure for
BD&JV opportunities. The same procedure shall be applicable to other
assignments of the BD&JV group.

31.1.2 The functions, in this procedure, are to be discharged by personnel of BD&JV


Group, Finance, Materials Management and other User groups for hiring of
consultant/ Advisors for Business development activities of ONGC. Various
powers indicated in this manual, as per authorities delegated under the
provisions of ONGC BDP (at Board level& below Board level). The BDP
powers shall stand automatically updated in accordance with the revisions /
amendments carried out to the respective provisions of BDP (from time to
time), unless any other specific instruction is issued subsequently by CS-
ONGC/Chief MM/PMC/ONGC with respect to the provisions of such revisions
in BDP.

31.1.3 Any changes/deviations in this procedure as may be required will be done with
approval of Executive committee.

31.2 Procedure for placing Purchase Requisition (PR) on materials


management

31.2.1 Assessment of Requirement/Scope of Work (SOW): The Indentor i.e.


BD&JV Group shall be responsible to assess the requirement and to
ensure that the Scope of Work (SOW) is comprehensive as far as
possible. The Scope of Work (SOW) along with special terms and
conditions like completion period (wherever possible), experience
requirement & other such condition should be finalised before sending the
PR to MM Depts. for processing. The SOW for Financial & Tax and
Accounting consultants should be prepared by BD&JV-Finance along with
the expenditure estimates. Wherever completion schedule is mentioned in
the RFP, provision for further extension of the contract beyond the contract
period, be also suitably made. The Scope of Work along with Special
terms and conditions will be approved by Head-BD&JV.

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(MM/112/2023 dated 30.11.2023)
31.2.2 Change in SOW: Efforts should be made not to change the SOW after
invitation of RFP/tender. However, if it is inevitable then the modification
in Scope of Work (SOW) can be carried out with the approval of concerned
L -1 and the same would be notified to all the bidders before the due date
of submission of bids so as to ensure that the bids are submitted
accordingly in line with the modified SOW.

31.2.3 Expenditure Sanction: The PR must accompany the expenditure


sanction as per BDP for the duly approved SOW from the sanctioning
authority. Under exceptional circumstances the processing of a case may
be allowed without expenditure sanction with the approval of Head-BD&JV
However, under no circumstances, the price bid opening is to be allowed
without expenditure sanction. Expenditure Sanction should be prepared in
a realistic and logical manner i.e. either based on the past data available
with BD Group or based on the budgetary quotation.
(MM/112/2023 dated 30.11.2023)
31.2.4 Urgency: The urgency should be clearly specified in the PR and the
approval of concerned L-1 be obtained by the User group before sending
PR to MM.

31.2.5 Indication of Agencies for inviting RFP/tender: RFP/Tender enquiry


shall be sent to all empanelled firms after the approval of Head-BD&JV.
The list of empanelled consultants, for sending RFP/Tender enquiry can
be pruned down with the approval of EC after due justification by BD&JV
group.

In specific cases (including nomination cases), where strategic issues are


involved or on the basis of confidentiality or if the target assets are located
in more than one region/country or on some other criteria, RFP/Tender
enquiry can be sent to firms which are not on the aforesaid panel or to
firms which have been empanelled for multiple regions with the approval
of EC.

31.2.6 Date of Indent: If the above points are not complied with by the Indentor,
that indent will not be treated as a firm indent, till all the points are clarified.
The date on which all the points or shortcomings in the indent are settled
that date will be considered as the date of indent.

31.3 Empanelment of consultants/advisors

31.3.1 The case for empanelment of consultants/advisors shall be processed by


the BD Team

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31.3.2 The criteria for empanelment should be clearly specified while
empanelling the consultants/advisors. The empanelment of
consultants/advisors shall be based on criteria finalized in-house such as
the ratings/rankings of the consultants/advisors appearing on International
websites/publications available in public domain or based on criteria
formalized in-house. The names of empanelled consultants/advisors shall
be displayed on the ONGC website. The criteria and list of agencies to be
empanelled for empanelment as consultants/advisors shall be approved
by the EC and shall be reviewed as and when required but not later than
two years.

31.3.3 Vendor empanelment will be for a period of 3 years and can be


subsequently renewed in case the vendor performance is above the
threshold set for de-empanelment. The empanelment process for new
vendors on the basis of existing criteria will be opened every year.
(MM/112/2023 dated 30.11.2023)
31.3.4 In case a consultant/advisor is hired on nomination basis who is not among
the list of empanelled consultants/ advisors, this nominated consultant/
advisor would be empanelled for that specific opportunity category with
the approval of concerned L-1. The empanelment criteria need to be
published and opportunity provided (through open tender) for other
consultants/advisors before limited tenders to vendors empanelled
through nomination route can be carried out.

31.4 Vendor Appraisal of Consultants/Advisors

Vendor appraisal of consultants/advisors empanelled or otherwise, could be


carried out according to para 17.4 on vendor appraisal.

31.5 Invitation of RFP/tenders for appointment of consultants

31.5.1 Limited tender to be preferred mode of tendering in business development


as the sources of services is typically know and limited. Once the tender
is invited the same should be finalised in a time bound manner. Re-
invitation of tender is to be avoided keeping in the nature of business
development at ONGC

31.5.2 Issue of RFP/Tender: RFP shall be issued to all bidders in line with para
31.2.5.

31.5.3 Tender Fee: No tender fee shall be charged as the tenders (RFP) are to
be issued to already empanelled/identified consultants/advisors.

309
31.5.4 RFP/Tenders are to be invited through e-mail. For this purpose an
individual tender box i.e. mailbox, for each type of consultant, is required
to be created in ONGC-mail by the dealing MM officer and the details of
this tender box shall be communicated to all the bidders (in RFP) along
with due dates of tender submission and opening. Password for the
mailbox will be sent by the In charge infocom/Designated officer to the
dealing officer of MM Dept in a sealed cover which will be opened at time
of tender opening.

31.5.5 The RFP/tenders will not be sent for publication in newspapers or website
as these are to be invited from empanelled agencies only. Individual
tenders will not be displayed on ONGC website as the names of
empanelled consultants/advisors are already displayed as mentioned in
para 31.3.

31.5.6 Two Bid System: Two Bid system shall be followed for all the tenders for
hiring of consultants/advisors for BD&JV opportunities. The bidders will be
asked to submit Unpriced i.e. Techno-commercial bid and Price bid
separately in two different mailboxes in ONGC mail. Both the bids shall
be submitted simultaneously in different mailboxes. The mailbox
containing Techno-commercial bids will be opened first, on the scheduled
day of tender opening as mentioned in RFP. Quality and cost based
selection (QCBS) methodology of tender evaluation as explained in para
11.3 should be leveraged as required. After techno-commercial evaluation
of the bids the techno-commercially acceptable bidders (all bidders in case
of QCBS with no mandatory criteria) shall be notified of the date of opening
of priced bids, by e-mail.

31.5.7 Time to be allowed for tendering: Save in special cases which should
be approved by Head-BD&JV, minimum 04 working days’ should be
allowed to the consultants/Advisors for submission of their bids. The case
for award of the contract should be finalized within 07 working days from
the date of opening of Techno-commercial bid.

The date of opening of the Techno-commercial bid and price bid will be
intimated to the bidders to enable them to participate in the bid opening, if they
so like.

31.5.8 Validity Period: The bidders will be asked to keep their offers valid for 30
days from the date of opening of techno-commercial bids (un-priced bids).
The price/rates would remain firm during the validity period of the bid.

For any particular case, if longer bid validity period is considered necessary,
then the longer bid validity period can also be specified in the tender with the
approval of Head-BD&JV, but due justifications for such longer bid validity
requirement must be given while obtaining the approval. However, after
specifying a reasonable time for bid validity period, the same must be adhered
to.

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31.5.9 Nomination of Tender Receiving/Opening Officer(s):Process as per
12.21 of this manual shall be followed

31.5.10 Accounting & Opening of Tenders: The Tender Receiving/Opening


Officers will open the designated mailbox as notified in RFP. They shall
take a screen printout of the same, open all the mails received and printout
hard copies of all the bids received, bidder-wise. If any due date happens
to be on a Gazetted Holiday then next working day may be fixed as the
tender due date.

The Tender Opening Officers will encircle the rates and terms and conditions
and put their initials. Total number of sheets in the bid will be mentioned on
the first sheet of bid and all the sheets should be initialled by both the officers
opening the bid and the bid will be given serial number. For example, if 7 bids
have been received against one particular enquiry, then bids should be
numbered as 1/7, 2/7 and so on. The bids which are received after due date
and time should be marked 'Late' tender with No. 8/7 and so on.

Both Tender Opening Officers will sign the register against the name of the
firms whose bids have been received. The tender opening officers should
make sure that no space/page is left blank between the last entry of particular
tender (which has been opened by them) and the starting page of the next
tender (appearing in the register), by crossing out the blank space/page with
the remark “space/page cancelled” and should also initial on these pages.

31.6 Hiring of consultants/advisors on nomination

In case of any exigency/emergency the consultant/advisor can also be hired


on nomination basis based on the following:

a) Operational urgency

b) In case any Consultant/Advisor brings the opportunity on exclusive


basis

c) Consultant/Advisor specific to the Project requirement

The detailed justification for hiring on nomination will be recorded by the


Indentor in the proposal moved for A/A. A/A along with E/S shall be conveyed
to Materials management for further action.

All nomination cases shall be reported to the Board as per prevailing


instructions and any modifications thereof issued from time to time.

31.7 Cancellation/re-invitation of tenders

31.7.1 Guidelines as per 14.3 of this manual should be followed

31.8 Extension of tender closing / opening date

31.8.1 Guidelines as per 12.27 12.26 of this manual should be followed.

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31.9 Clauses in tenders (RFP) / engagement agreement

31.9.1 The standard tender document (RFP)/Engagement Agreement, duly


approved by EC, shall be adopted for hiring of consultants/advisor. Any
change in terms and conditions except special conditions of the
Engagement Agreement, in the tender document, shall require the
approval of EC.

31.10 Earnest money (bid security) and security deposit(performance


security)

31.10.1 EMD/SD shall not be obtained as the tenders are being invited from
empanelled agencies/nominated agencies.

31.10.2 Liquidated Damages will not be applicable for empanelled/nominated


agencies.

31.11 Clarification from bidders after tender opening

31.11.1 At the techno-commercial bid evaluation stage, post tender clarifications


should be avoided, as far as possible.
(MM/113/2023 dated 08.12.2023)
31.11.2 However, in case after opening of un-priced techno-commercial bids, if it is
observed that clarifications from the bidders on important techno-commercial
aspects are necessary for enhancing competition in the tender, opportunity
shall be given to provide clarifications/ confirmations/deficient documents.
Guidelines as per para 13.4 shall be followed in this regard.

31.11.3 Clarifications should be sought from bidders, by specifying a reasonable cut-


off time for submission of clarifications/ confirmations/ deficient documents.
Sufficient time should be given to the bidders to submit their responses
depending upon the nature of clarifications/confirmations/deficient documents
which are required to be submitted. However, in the event of an unscheduled
holiday falling on the specified day of the ‘cut off time‘, the next working day
shall be treated as the ‘cut off time’. In all other situations, if an extension for
the ‘cut off time’ is felt necessary based on requests received from the
bidder(s), approval should be obtained from Head-BD&JV. Such approval for
the same should be obtained before the expiry of the specified ‘cut off time’
and the decision should be communicated to all the bidders from whom the
clarifications/conformations/deficient documents have been sought.
(MM/112/2023 dated 30.11.2023)
31.11.4 Clarifications/confirmations/deficient documents which are received after the
specified cut-off date should be considered only in exceptional situations
depending upon merit of the case, where at least two clear TA/CA offers are
not available, with the approval of concerned L-1, after recording detailed
justification for considering such offers.

312
31.12 Correspondence with bidders by indentors

31.12.1 Guidelines as per 13.5.1 should be followed

31.13 Technical comments on offers

31.13.1 Guidelines as per 13.1 should be followed.

(MM/113/2023 dated 08.12.2023)


31.14 Formation of BEC Formulation Committee/ Procurement Evaluation
Committee and its monetary limits

For all cases of hiring consultants/advisors for BD opportunities, guidelines


as per para 10 shall be followed.
(MM/112/2023 dated 30.11.2023)
31.15 Evaluation of bids & shortlisting of bidders Guidelines as per para 13,
14 & 15 shall be followed.

31.16 Acceptance of recommendations of BEC Formulation Committee/


Procurement Evaluation Committee

31.16.1 Guidelines as per 10.5 of this manual should be followed.

31.17 Proposals to Executive Committee (EC)

31.17.1 Terms & Conditions (except Scope of Work and Special Terms & Conditions)
for appointment of consultant/advisor shall be standardized and approved by
EC. Issue relating to modification in the BD procedure (for hiring of
consultants/ advisors) of ONGC or any change in standard terms &
conditions, may be referred to the Executive Committee (EC) for its decision.

31.18 Consideration of offers & shortlisting of bidders

31.18.1 Guidelines as per 15.1 of this manual should be followed.

31.19 Reasonability of rates

(MM/10/2016 dated 23.03.2016)


31.19.1 Guidelines as per Para 14.1 to be followed.

31.19.2 Placement of order when one offer is received


(MM/112/2023 dated 30.11.2023)
If after inviting tenders, only one offer is received against the tender, the
order may be placed on the bidder provided the rates are considered
reasonable or if the requirement is urgent. The urgency of the requirement
would be approved by the concerned L-1.

313
31.20 Negotiations

(MM/26/2017 dated 21.06.2017)

31.20.1 Guidelines as per 14.2 to be followed.

31.21 Powers for various activities

31.21.1 Competent Authority for approving Scope of Work, proposed Technical


BEC (if any), Technical part of Special Conditions of the Contract,
Invitation of Tenders, change of Scope of Work as a sequel to invitation of
tender, shall be Head-BD.

31.21.2 Purchase Powers

31.21.2.1 Accept a tender for hiring of consultant/advisor against tenders from


empanelled agencies:

Competent purchase authority and extent of power shall be as BDP

31.21.3 Against Nomination, in case of operational urgency and/or reliability


and/or exclusivity:

Competent purchase authority and extent of power shall be as per BDP

31.21.4 Signing of Contracts / Placement of PO:

Authority Extent of powers


As per BDP Full Powers

31.22 Alterations in conditions of tenders (before issuance of tender)

31.22.1 Standard tender document with terms and conditions shall be followed for
invitation of RFP. However, special conditions of contract in the tender can be
added with the approval of Head-BD&JV. Any proposed provisions, which are
in conflict with the existing policy/ procedure/ PMC instructions, will require
approval of EC, ONGC.

31.22.2 For nomination cases CPA will have full powers to alter standard terms &
conditions, if required.

31.23 Post contract issues


(MM/113/2023 dated 08.12.2023)
31.23.1 Post contract issues (Post LOA/NOA issues,) will require to be deliberated by
the Procurement Evaluation Committee and submitted for approval of the
Competent Purchase Authority.

314
31.23.2 All the post contract issues regarding amendment in condition(s) of contract
will be approved by the authority as per the value of the case and powers
delegated as per BDP.

31.23.3 Increase in Scope Of Work (SOW) after award of contract: If, during
execution of the contract the SOW increase beyond the contractual provisions
and it is considered critical as well as essential to get this additional SOW
executed through the same contract, the following is authorised:

31.23.3.1 If the increase in SOW is up to a value of 10%, over and above the original
contractual value then Head BD&JV can accord the A/A for continuing the job
on the same terms and conditions & rates, however, the case is to be put up
later on to CPA for ex-post facto approval (to be decided based on cumulative
value) on the recommendation of Procurement Evaluation Committee.

31.23.3.2 At any point during execution of the contract, if it is felt that there is a chance
that the value of additional SOW may increase beyond 10%, over and above
the original contract value, the Project Group shall take A/A & E/S from the
competent authority (to be decided based on cumulative value). The contract
shall then be amended after taking prior approval of competent purchase
authority (to be decided based on cumulative value) on the recommendation
of Procurement Evaluation Committee before executing the additional SOW.

31.24 Extension of completion date

31.24.1 Guidelines as per 18.2.8 of this manual should be followed.

31.25 Termination of contract

31.25.1 Guidelines as per 23.2 of this manual should be followed.

31.26 Complaints / representations - consideration of

31.26.1 Guidelines as per 24.4 of this manual should be followed.

315
32 Procedure for charter hiring of Aircrafts/Helicopters for movement of VVIPs
or to meet contingency/emergency

(MM/40/2018 dated 29.08.2018)


(MM/112/2023 dated 30.11.2023)
32.1 The Indenting Department/Corporate Logistics shall obtain Administrative
Approval (AA) and Expenditure Sanction (ES) from Chairman & CEO.

32.2 For hiring of Aircrafts/Helicopters for movement of VVIPs or to meet


contingency/emergency, whenever possible a Board of officers at the level of
In-charge of Logistics/Indentor and corresponding level of Finance department
shall be constituted with the approval of concerned key executive.

32.3 If it is found that constitution of Board is not possible due to paucity of time, full
justification shall be recorded for the same, while submitting the proposal for AA.

32.4 The names of the firms to whom enquiries have to be sent shall be selected
from the list of firms identified depending upon the originating sector of
operation, type of Aircraft required, seating capacity etc. The list of the firms
shall be updated from time to time by Corporate Logistics with the approval of
Head Corporate Logistics.

32.5 The enquiries with brief technical details, terms & condition and tentative
schedule shall be' sent to as many firms by Logistics/Indentor as possible, as
per instruction in vogue on this issue. Names of such firms proposed for sending
enquiries shall also be got approved from the Director-I/c Logistics. The enquiry
can be sent to the firms either by ONGC mail, fax or by post depending upon
the availability of time.

32.6 Conditions relating to submission of EMD and Security Deposit shall not be
incorporated in the tender documents.

32.7 The bids through fax or e-mail can also be obtained and accepted for processing
and finalization of the tender. However, bids submitted through fax or e-mail
should be followed by original bid for records.

32.8 Based on the technical requirement mentioned in the enquiries, technical


evaluation shall be carried out by the Logistics/Indentor. The Comparative
Statement shall also be prepared by them and got vetted from the attached
Finance

316
(MM/113/2023 dated 08.12.2023)
32.9 A Procurement Evaluation Committee at In-charge level of Logistics/ Indentor
and corresponding level of Finance Department shall meet for deliberation on
hiring of the aircraft and lowest technically acceptable offer shall be
recommended for award of Work Order. Irrespective of the value of the case,
recommendation of the Procurement Evaluation Committee shall require
approval of Director-I/c Logistics. In case of hiring of aircraft through Board of
officers also, the proceedings of the Board consisting of In-charge level of
Logistics/ Indentor and corresponding level of Finance Department for award of
the Work Order shall be approved by Director-I/c Logistics.

32.10 After approval of PEC's recommendations/proceedings of the Board, PR and


Work Order will be created for regularization of payment by Logistics/ Indentor.
(MM/112/2023 dated 30.11.2023)
32.11 The cases upto Rs. 1 crore shall be reported to MCoDP and the cases above
Rs. 1 crore shall be reported to Board

317
33 EPCG Cell

33.1 Roles and Responsibilities

33.1.1 The role and responsibility of EPCG Cell shall be as under:

i. To obtain the year wise expected export revenue from Marketing Group
Export Cell and work out the potential benefit under the EPCG Scheme.

ii. To identify P.O.s/Contracts, where Custom Duty is payable against


EPCG License can be obtained.

iii. To obtain nexus certificate from the concerned indenter certifying that
nexus exists between the item being procured and production of
Naptha/Crude Oil.

iv. To file application for EPCG License against each P.O. / Contract in the
prescribed format and submit it to the office of DGFT and obtain EPCG
License in time.

v. To send the EPCG license to concerned T&S office so that the goods
can be cleared at the concessional rate of Customs duty.

vi. To co-ordinate with the T&S Office(s) so that after utilization of EPCG
License, same is returned in original along with utilization statement to the
EPCG Cell. Head T&S to maintain a proper record of EPCG Licenses, its
utilization, custom duty saved along with details of P.O. etc.

vii. To co-ordinate with indentor for obtaining installation certificate. The


Indentors, in co-ordination with local MM & Finance, will obtain the
installation certificate from jurisdictional Central Excise Authority (if
applicable) or independent Chartered Engineer. Wherever application for
installation certificate is made to Central Excise Authority and if 30 days
have lapsed from the date of acknowledgment of such application, the
trade shall submit the copy of acknowledgment along with a Chartered
Engineer certificate confirming the installation of the capital goods within
six months from the date of imports. However, the applicant shall submit
declaration to the effect that no deficiency has been raised by the Excise
Authority and original acknowledgment has not been called back by the
Authority

viii. To ensure that the installation certificate is submitted to the


Regional Licensing Authority of DGFT within six months of import or if the
same is not submitted, to get the required extensions from DGFT and to
file the same within the extended time.

ix. To forward the details of EPCG License to Export Cell in Marketing


Group at Mumbai for carrying out the fulfilment of the export obligation.

318
x. To fill the necessary details in the DGFT formats along with installation
certificates and apply for closure of the License and get the discharge of
export obligation certificate issued from DGFT.

xi. To register all the locations/assets/plants/basins/institutes with Jt.


DGFT (Joint Director General of Foreign Trade) and FIFO (Federation of
Import Export Organization) if they are not registered.

xii. To maintain proper record of each EPCG License, its utilization,


installation certificate details, Custom Duty saved, export obligation fulfilled
within the stipulated period etc. for reporting and monitoring purpose,

xiii. where ever application for installation certificate is made to Central


Excise Authority and if 30 days have lapsed from the date of
acknowledgment of such application, ECPG cell shall submit the copy of
acknowledgment along with a Chartered Engineer certificate confirming
the installation of the capital goods within six months from the date of
imports to the office of Zonal Jt. Director, General of Foreign trade. Along
with a declaration that no deficiency has been raised by the Excise
Authority and original acknowledgment has not been called back by the
Authority where ever application for installation certificate is made to
Central Excise Authority

319
34 Powers for various activities

34.1 Competent Authority for approving various activities

(MM/26/2017 dated 21.06.2017)


(MM/04/2015 dated 28.04.2015)
(MM/10/2016 dated 23.03.2016)
(MM/109/2023 dated 30.10.2023)
(MM/112/2023 dated 30.11.2023)
(MM/114/2023 dated 20.12.2023)

Sl
No Activity Competent Authority
1 (i) (a) Scope of Work, Technical Sanctioning Authority.
Specifications, Technical BEC, Technical
part of Special Conditions of the Contract however,Concerned Level-I executive
including Changes in any of above as a shall have full powers.
sequel to pre-bid conference or otherwise,
(which are to be enclosed with the tender)
(to be forwarded to MM Department along
with indent after approval of Competent
Authority).

(b) Price format (as proposed by indentor


and forwarded to MM department along with
indent.)
(ii) Pre-Qualification Criteria (PQC) for Level-II- For tenders valuing between
Limited Tender and the list of bidders Rs. 10 lakhs to Rs. 25 lakhs.
who meet the PQC. Level-I – Concerned L-1 shall have
full powers.
2 (a) Invitation of Tenders including the type Competent Purchase Authority
of tender to be invited, in case of any
deviation from specified tendering mode, However, Concerned Level-1 executive
Price format, GCC (where standardized / shall have full powers.
approved GCC are not applicable/
available), other Special Conditions of
Contract excluding those approved by
Sanctioning Authority as per 34.1.1 above
(which are to be enclosed with the tender).
Changes in price format and other special
tender conditions of contract as a sequel to
pre-bid conference or otherwise

(b) BEC excluding Technical BEC to be CPA (Concerned Level-1 full powers)
enclosed with the tender. Any change in
BEC excluding Technical BEC as a sequel
to pre-bid conference or otherwise.

320
Note:

(i) Any proposed provisions, which are in conflict with the existing
policy/procedure/ PMC instructions, will require approval of MCoDP.

(MM/10/2016 dated 23.03.2016)


(ii) – Deleted -

34.2 Purchase Powers

34.2.1 Purchase powers shall be as outlined in the BDP.


(MM/113/2023 dated 08.12.2023)
34.2.2 Acceptance of offer other than lowest technically acceptable offer (where
Procurement Evaluation Committee is not held)

a. For tenders of value of less than Rs. 10 lakhs purchase shall be finalised
with concurrence of Finance if the lowest technically acceptable offer is
not operated.

34.3 Placement of development order on a domestic bidder


(MM/112/2023 dated 30.11.2023)
34.3.1 Powers for approving placement of development order shall be as per BDP.

34.4 Miscellaneous powers of officers of materials management

34.4.1 Freight for materials carried:

a. Ocean, River, Railway, Road and Air (where Air is cheaper or more
suitable than alternative modes except the cases where indenter had
not specifically mentioned as per clause 20.7)
Authority Extent of power
Level-III As per actuals

b. Air (including airlifting of imported material) in urgent cases


Authority Extent of power
Level-I As per actuals

Note: Above powers ((i) & (ii) above) appearing as per BDP (powers for
Logistics) can be exercised by MM section also

34.4.2 Wharfage & Demurrage (Supply Material transported by ship/road/rail/Air)

Authority Extent of power


Level-II Full powers

321
Authority Extent of power
Level-III Upto Rs. 5,000 for each case
Notes:
1. Above powers appearing under BDP- (powers for Logistics can be
exercised by MM section also).

2. Quarterly Report of Wharfage & Demurrage cases above Rs.5000 to


be submitted to the concerned Level-1 executive

34.4.3 Expenditure sanction for hiring of service & facilities at ports (including
airports), railway station/yard and allied agencies such as shipping/
trucking/ cargo agents, stevedores, clearing & handling agents, etc.
(includes services such as stevedoring, handling, trucking, clearing &
handling charges and other charges at ports, railway station/trucking,
store yard and handling and transporting charges to warehouse before
dispatch of materials to destination and Certification agency dues and
Mercantile Marine Departmental Charges)

Sl. Authority Extent of Powers Remarks


No.

I) L-I Up to Rs. 10 crore in each i) Efforts shall be made to enter


case into annual rate Contracts with
ii) L-II Up to Rs. 10 crore in each suitable agencies wherever the
case handling and transportation jobs
iii) L-III Up to Rs. 10 crore in each are of recurring nature and
case departmental facilities are not
iv) L-IV Up to Rs. 10 crore in each adequate.
case

ii) Where such a contract is not


available, the powers shall be
exercised by the highest
available officer at the level of
Sr. MM officer and above.
iii) Financial concurrence will be
necessary.

34.5 Powers for purchase by negotiations

(MM/64/2021 dated 24.03.2021)


In case the purchase has to be effected by negotiations before placing order,
the procedure laid down in 14.2 will be followed. The level of CPA shall be
decided on the basis of higher of original evaluated value of L-1 bidder (B-1
bidder in case of QCBS tenders) before negotiations or tender value.

322
34.6 Signing of POs / contracts

(MM/04/2015 dated 28.04.2015)


(MM/112/2023 dated 30.11.2023)
Powers for signing of POs/contracts shall be as per BDP.

Note:
The signing powers as above will be exercised subject to authorized
signatory satisfying himself of the following conditions:
a. Proper expenditure sanction for the procurement exists.
b. The purchase has approval of competent purchase authority
c. Agreement /Contract is placed on standardized/approved terms and
conditions
d. In case a tender results in multiple Orders/ Contracts, signing powers
will be decided based on the sum total of all the individual orders/
Contracts

34.7 Exercising of powers of materials management discipline by officers


designated in the discipline of mechanical / electrical / civil etc

Officers designated in the discipline of Mechanical / Electrical / Civil etc.


but posted in Materials Management discipline may exercise powers of
officers of Materials Management discipline provided such officers are
posted with prior approval of Director I/C MM.

34.8 Observance of laid down procedure

34.8.1 The purchase powers are exercisable only if the purchase is effected
subject to the observance of normal procedure for open / limited tenders.

34.8.2 If in any case it is considered desirable to invite tenders from a few


selected firms, the prescribed procedure will be followed

34.9 Relaxation in conditions of tenders

34.9.1 All contracts should normally be entered into on the standard form
prescribed for making purchases for the ONGC except where existing
clauses are to be modified or special clauses added for compliance by
the suppliers

(MM/10/2016 dated 23.03.2016)


34.9.2 In case of purchases of Proprietary items, procurement of materials/hiring
of services from OEM /OES, the concerned Level-I will be empowered to
relax standard terms and conditions of tenders/ POs / contracts provided
the OEM / OES/ manufacturer of proprietary items does not accept such
terms and conditions. It must be ensured that the items are consumed
within one year from the date of receipt.

323
(MM/112/2023 dated 30.11.2023)
34.9.3 Relaxation in standard terms & conditions in tender documents for
procurement of goods and hiring of services in case of hi-tech areas like
deep water, sub-sea completion, HPHT services, shall be approved by
concerned L-1 in all cases irrespective value of the cases. Such
relaxation shall be granted based on the issues raised by prospective
bidders during pre-bid conference and during evaluation of bids.

34.9.4 Corporate Tax(Applicable in tax protected contracts): In exceptional


cases where Directs tax(es) arising under the contracts are to borne by
ONGC ,contracts such nature should be entered into with the approval
of Director concerned & Director(Finance ).

34.10 PERIOD WITHIN WHICH INDENTS ARE TO BE PROCESSED

The maximum time limits for various activities under different categories of
tenders are prescribed in the schedules, as per details below:

Annexure A Tender processing time applicable for Open Tenders

Annexure B Tender processing time applicable for Limited Tenders

As far as possible, all tenders should be processed within time norms


prescribed for the respective category of tender.

324
Annexure-A

Tender processing time applicable for Open Tenders


(MM/48/2019 dated 07.02.2019)
(MM/112/2023 dated 30.11.2023)

Sl. Activity Time schedule in number of days


No. Non MCoDP
MCoDP Cases
Cases
A Purchase Requisition to NIT /Tender publication

1 Receipt of Purchase Requisition by


MM, complete in all respects 0 0

2 Scrutiny of Purchase Requisition


5 5
3 Approval of BEC (Holding TC and
approval thereof) 8
8

4 Publication of NIT/Tender (including


uploading of NIT on website) 2 2

(Total days for phase-A)


(15) (15)
B NIT / Tender publication to Techno-commercial bid opening(TBO)

1 Tender downloading Period


Upto bid closing
2 NIT /Tender publication to Receipt of
queries from vendors for pre-bid
7* 7*
conference

3 Scrutinizing the queries and holding pre


5 5
bid conference
4 Approval of Minutes of Pre-bid
conference, issuance of minutes and
amendments, if any 7 7
.

5 Submission of offers
21 21
(i.e. Opening of Techno-commercial bid)
(Total days for phase-B) (40) (40)

*If additional time for bidders to submit queries for pre-bid conference is needed in any
case, the same can be allowed with approval of L-1 level Executive.

C Techno-commercial bid opening to placement of LOA/NOA

325
Sl. Activity Time schedule in number of days
No. Non MCoDP
MCoDP Cases
Cases
1 (a) Preparation of techno-commercial
CS 4 7 4 7
(1 & 2 to (1 & 2 to
(b) Vetting of CS 3 be carried 3 be carried
2 (a) Forwarding the offers for technical 0 out 0 out
comments concurrentl concurrentl
(b) Technical Comments y) y)
7 7
3 TC for evaluation
(Holding TC and signing minutes)
8 8

4 Approval of TC minutes
2 2
5 Opening of price bids
2 2
6 Preparation of CS for price bids
2 2
7 Vetting of CS for price bids
2 2
8 TC for finalization of tender
(Holding TC and signing minutes) 5 5
9 Approval for award of contract
10 2
10 Award of LOA / NOA
1 1
(Total days for phase-C)
(39) (31)
Total Tender processing time (A+B+C) 94 86

Notes:

(i) In case any activity is completed before specified time, next activity should be
commenced immediately.

(ii) Wherever pre-bid conference is not held / required, allotted time for the activities related
to pre-bid conference shall be excluded and the time for submission of offers shall be 21
days from the date of publication of NIT/ Tender.

(iii) In LSTK contracts, an additional time of 30 days for “Process Platforms” and 15 days for
all other LSTK projects including “Well Platforms” and “Pipe Lines” shall be applicable
for the activities between B3 & B4.

(iv) If seeking clarifications becomes necessary (applicable for all types of tenders), an
additional time of 15 days shall be allocated for first round of clarifications (to cover the
time required for obtaining clarifications, scrutiny of clarifications, holding TC and

326
approval thereof etc.). However, the time for scrutiny, holding TC, approval etc. should
be curtailed to the barest minimum possible.

For second round clarification, wherever applicable, additional time of 15 days shall be
allocated.

(MM/112/2023 dated 30.11.2023)


(v) Wherever approval of MCoDP (other than for activity indicated at C.9 above) is required,
an additional time of 10 days would be applicable.

(vi) In case of LSTK, additional time as per para 13.1.2 shall be applicable for the activity
C2(b).

(vii) Tender scheduled start date for participation (Tender Start Date) shall be considered as
the date of publication of NIT/Tender for the purpose of counting of days in respect of
e-tenders.

327
Annexure-B

Tender processing time applicable for Limited Tenders


(MM/48/2019 dated 07.02.2019)
(MM/112/2023 dated 30.11.2023)

Sl. No. Activity Time schedule in number of


days

Non MCoDP
MCoDP Cases
Cases

A Purchase Requisition to Issue of tender enquiries /Authorizing


selected/shortlisted bidders on e-tender portal
1 Receipt of Purchase Requisition
0 0
by MM, complete in all respects
2 Scrutiny of Purchase Requisition 5 5
3 Approval of BEC / PQC (For
holding TC and approval
8 8
thereof)

4 Issue of tender
enquiries/Authorizing
selected/shortlisted bidders on e-
tender portal (and uploading on 2 2
website for cases above Rs. 10
lakhs)

(Total days for phase-A) (15) (15)

B Issue of tender enquiries to Techno-commercial bid opening


(TBO)
1 Receiving requests for tender
enquiries from vendors whose 10 10
name not included in original list
2 Verification of such request by
indentor and issue of tender
enquiries to eligible bidders
/authorizing eligible bidders on e- 5 5
tender portal (including the time
required for receiving same by
the bidder)
3 Receipt of queries from vendors
5 5
for pre-bid conference
4 Scrutinizing the queries and
5 5
holding pre bid conference
5 Approval of Minutes of Pre-bid
7 7
conference, issuance of minutes

328
Sl. No. Activity Time schedule in number of
days

Non MCoDP
MCoDP Cases
Cases

6 Submission of offers
(i.e. Opening of Techno-
commercial bid in two bid system 15 15
/ bid opening in single bid
system)
(Total days for phase-B) (47) (47)

Sl. No. Activity Time schedule in number of


days

MCoDP Non MCoDP


Cases Cases

C Techno-commercial bid opening (TBO) to LOA/NOA


1 (a) Preparation of techno- 4 7 4 7
commercial CS
(1 & 2 (1 & 2 to
(b) Vetting of CS. to be be
3 3
carried carried
2 (a) Forwarding the offers for 0 out 0 out
technical comments concurr concurre
(b) Technical Comments ently) ntly)
7 7
3 TC for evaluation
(Holding TC and signing 8 8
minutes)
4 Approval of TC minutes
2 2
5 Opening of price bids (in two bid
2 2
system)
6 Preparation of CS for price bids
2 2
(in two bid system)
7 Vetting of CS for price bids (in
2 2
two bid system)
8 TC for finalization of case (in
two bid system)
5 5
(Holding TC and signing
minutes)
9 Approval for award of contract. 10 2

329
Sl. No. Activity Time schedule in number of
days

MCoDP Non MCoDP


Cases Cases

10 Award of LOA / NOA


1 1
(Total days for phase-C) (39) (31)

Total Tender processing time (A+B+C) 101 93

Notes:

(i) In case any activity is completed before specified time, next activity should be
commenced immediately.

(ii) Wherever pre-bid conference is not held / required, allotted time for the activities
related to pre-bid conference shall be excluded and the time for submission of
offers shall be 30 days from the date of publication of NIT/Tender.

(iii) In LSTK contracts, an additional time of 30 days for “Process Platforms” and 15
days for all other LSTK projects including “Well Platforms” and “Pipe Lines” shall
be applicable for the activities between B3 & B4.

(iv) If seeking clarifications becomes necessary (applicable for all types of tenders),
an additional time of 15 days shall be allocated for first round of clarifications (to
cover the time required for obtaining clarifications, scrutiny of clarifications,
holding TC and approval thereof etc.). However, the time for scrutiny, holding TC,
approval etc. should be curtailed to the barest minimum possible.

For second round clarification, wherever applicable, additional time of 15 days


shall be allocated.

(MM/112/2023 dated 30.11.2023)


(v) Wherever approval of MCoDP (other than for activity indicated at C.9 above) is
required, an additional time of 10 days would be applicable.

(vi) Norms for the activities indicated at B-(1) and B(2) shall be applicable only for the
cases where Limited tenders have been invited as against Open tenders as per
para 8.2.6

(vii) In case of LSTK, additional time as per para 13.1.2 shall be applicable for the
activity C2(b).

330
(viii) Tender scheduled start date for participation (Tender Start Date) shall be
considered as the date of publication of NIT/Tender for the purpose of counting
of days in respect of e-tenders.

331
ANNEXURE “C”

OIL & NATURAL GAS CORPORATION


PROPOSAL PROFORMA FOR CONDEMNATION OF VEHICLES
CRANES, TRACTORS AND OTHER TRANSPORT EQUIPMENTS

PROJECT/OFFICE

PART –A

(TO BE FILLED IN BY TRANSPORT SECTION OF PROJECT/OFFICE CONCERNED)

1. Make & type of vehicle ___________________________


2. Registration No. ___________________________
3. Engine No. _____________________
4. Chassis No. _____________________
5. Date of commissioning _____________________
6. Total Kms/Hrs. run _____________________
7. Capital cost _____________________
8. Book value _____________________
9. Census No. _____________________
10. Whether on road/off road
(indicate date of off road) _____________________
1. Has the vehicle met with
an accident? If yes, inquiry
report to be enclosed. ______________________

T.O./Sr. TPT Officer/Manager(TPT)

PART – B
TECHNICAL REPORT
(TO BE FILLED IN BY AUTO ENGR./INCHARGE OF REPAIRS)

Sl. Major Assembly Condition Estimated


No. cost of repairs
(Rs.)
1. Engine
2. Chassis frame
3. Front Axle
4. Rear Axle
5. Transmission
6. Body and cabin
7. Suspension
8. Electrical system
9. Brakes
10. Steering system
11. Auxillary gear box (if fitted)
12. Under carriage
(in case of Tractor)
13. Other misc. items

332
14. Crane portion
(applicable for cranes)

(a) Engine (No. of overhauls done)


(b) Boom
(c) Operator’s cabin/body
(d) Generator/Motor
(e) Hydraulic system
(f) Other misc.

15. General Condition of vehicle/ equipment


16. Total estimated cost of repairs

Dy. SE(Auto)/EE(Auto)

333
Appendix 1 High Sea Sales Agreement

(On Non judicial Stamp paper of appropriate value)

Agreement No. ________ Dated: _____

Subject:

This agreement between _____________ having its registered office at


_____________ (hereinafter referred to as “Seller”) on ONE PART

And

Oil and Natural Gas Corporation Limited, having its registered at 124, Connaught
Circus, Jeevan Bharti Building, Tower-II, New Delhi (hereinafter referred to as
“Buyer” ) on the OTHER PART.

Whereas the Seller has made an offer to the Buyer for sale of _______________,
vide quotation No. _______ dated________

Whereas, the Buyer has accepted the above mentioned offer of the Seller and
accordingly placed purchase order No.______________ dated _____________ .

Whereas the Seller in his above mentioned quotation has offered to sell the goods
to the Buyer on ‘High Sea Sales’ basis and the Buyer has accepted the terms of
High Sea Sales.

Now this agreement witnessed as follows:

1. Name and Address of Buyer : ONGC


Address of the work centre.

2. Description of Goods.

3. Quantity.

4. Name of foreign Supplier / Source of Supply

5. Name of freight forwarder / Ship / Vessel / flight

6. Bill of lading No. and date / Master AWB No. / House AWB No. and date.

7. Port / Airport of Despatch

8. Consideration/ Payment to Indian Supplier.

9. Invoice No. and date

10. Consignee Port

334
11. Country of origin

12. Customs duty ( To be paid by the buyer directly to Customs Authority


wherever applicable, otherwise Nil against EC for the material meant for PEL/ML
areas)

13. Taxes / Govt. levies: No Sales Tax shall be charged or levied as the goods
are being sold and delivered to the buyer on High Sea Sales basis. This sale is
considered to have been completed on handing over of the endorsed Bill of lading
/AWB and the invoice and material accepted by ONGC. Title of the goods stands
transferred to the buyer on handing over of the BL / AWB and invoice duly endorsed
in favour of the buyer when the goods are on High Sea.

14. Insurance: Seller to submit Marine Transit Insurance policy with due
endorsement in favour of ONGC at the time of sale, along with transfer of rights of
subrogation in favour of ONGC.

15. Clearance of goods: The sale being a high sea sale, the buyer would make
his own arrangement for Custom clearance at Consignee Port/ Airport. Customs
handling and clearance charges will be to the account of buyer.

16. Payment: As per PO No. _________

17. The Buyer undertakes to forward the Exchange control copy of the Bill of
entry, under which they would clear the goods, to the seller after getting the same
duly authenticated by the Customs Authorities.

18.IEC Code of the buyer is ______.


Above mentioned Parties entered into a contract on High Sea Sales basis for the
goods specified above subject to terms and Conditions mentioned above and herein
under:

1. On the basis of PO placed by Buyer for the goods specified herein on the
seller, the Seller has placed Order No. _________ dated _________ on
M/s__________ (Name of Foreign supplier) which is sea freighted / air freighted as
per schedule furnished above. The seller has agreed to the sale and the Buyer has
agreed to purchase the Consignment on High Sea Sales Basis for the amount
specified above.

2. Based on the PO No.________ dated ______(ONGC order No. and date),


the payment terms committed by the buyer, the seller hereby transfers the title of
the goods to the Buyer through this contract.

3. Customs duties, Port charges, Insurance, demurrage , wharfage and other


incidentals etc. shall be as per clause_____of the PO No._______dated_____
(ONGC order No. and date).

335
4. All other Taxes and applicable duties shall be as per PO
No._______dated_____ (ONGC order No. and date).

5. High Sea Sales shall be subject to Force majeure.

6. The Buyer undertakes to forward the Exchange control copy of the Bill of
entry, under which they would clear the goods, to the seller after getting the same
duly authenticated by the Customs Authorities.

7. Any amendment and supplements to this contract are valid only if they are
agreed to by both the parties in writing and signed by the authorised representatives
of both the parties.

8. The High Sea Sales contract signed by both the parties to this contract would
be irrevocable until all such acts as specified herein have been completed.

IN WITNESS WHEREOF the Seller and the buyer hereto have set their respective
hands on the date mentioned above.

SELLER : Name of the Indian Supplier.

BUYER : ONGC

For the Buyer. For the Seller.

Witness. Witness.

336
Appendix 2

(MM/26/2017 dated 21.06.2017)

- Deleted -

337
Appendix 3 TERMS & CONDITIONS OF TENDER FORPURCHASES UPTO
Rs.10.00 LAKHS

OIL & NATURAL GAS CORPORATION LTD.

Office of..........................

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

Visiting hours..................

Phone No........................

No. Dated.

Purchase Order
(Subject to jurisdiction............)

To

__________________

__________________

__________________

Dear Sirs,
With reference to your quotation No......................................................
dated...................... please supply the under mentioned goods subject to the terms
and conditions indicated below and also terms and conditions enclosed at Annexure
‘A’:-

Sl. Material Part Description Uni Qt Rat Amount


No Code No. t y. e
.

i.) Packing & Forwarding Charges :


ii.) Taxes :
iii.) Terms & Delivery :
iv.) Consignee :

338
v.) Date of delivery :
vi.) Place of delivery :
vii.) Dispatch instructions :
viii.) Inspection to be carried by :
ix.) Place at which to be tendered
for inspection :
x.) Bill to be made in the name of :
xi.) Payment through Bill in triplicate :
(a) By the :
(b) During the year :
xii.) Purchase order code :
xiii.) Vendor Code :
xiv.) Insurance :
XV.) Mode of transport :

On receipt of the purchase order, the seller should confirm within 15


days of issue of the Purchase Order that he is arranging to supply the material
within the stipulated delivery. If not, ONGC may cancel the contract.

(PURCHASE OFFICER)
Copy to:-
1. Consignee
2. Finance and Accounts Officer - 2 copies.
3. Indentor.
4. Inspection Deptt.
5. Office copy.

339
ANNEXURE ‘A’

TERMS & CONDITIONS OF PURCHASE ORDER FOR


PURCHASES UPTO Rs.10.00 LAKHS

1. WARRANTIES AND GUARANTEES

1.1 MATERIALS AND WORKMANSHIP

Supplier shall fully warrant that the stores, equipment and component supplied
under the order shall be new and of first quality according to the specifications
and shall be free from defects (even concealed fault, deficiency in design,
Materials and Workmanship).

1.2 Should any defects be noticed in design, material and/or workmanship within
12 months after the goods or any portion thereof as the case may be have
been delivered (and commissioned) to the final destination indicated in the
contract or for 18 months after the date of dispatch whichever period conclude
earlier unless specified otherwise in the condition of contract. ONGC shall
inform supplier and supplier shall immediately on receipt of such intimation,
depute their personnel within 14 days to investigate the causes of defects and
arrange rectification/replacement/modification of the defective equipment at
site, without any cost to ONGC within a reasonable period. If the supplier fails
to take proper corrective action to repair/replace defects satisfactorily within a
reasonable period, ONGC shall be free to take such corrective action as may
be deemed necessary at supplier’s risk and cost after giving notice to the
supplier.

1.3 Damage to the machinery and/or replacement due to incomplete and


erroneous instructions issued by supplier will be the responsibility of the
supplier and will be treated according to the provisions of warranty clause.
Normal wear and tear shall not come under purview of this clause.

1.4 In case defects are of such nature that equipment shall have to be taken to
supplier’s work for rectification etc. supplier shall take the equipment at his cost
after giving necessary undertaking or security as may be required by ONGC.
ONGC shall if so require by the supplier, dispatch the equipment by quickest
mode on freight to pay basis to the supplier’s work. After supplier shall deliver
the equipment at site on freight pre-paid basis. All risks in transit to and fro
shall be borne by the supplier.

1.5 Equipment or spare parts thereof replaced shall have further warranty for a
period of 12 months from the date of acceptance.

1.6 If the repairs, replacement or modifications referred are of such nature as may
affect the efficiency of the equipment ONGC shall have the right to give to the
supplier within one month of such replacement/renewal, notice in writing to
carry out test as may be required for acceptance of the equipment.

340
2. REJECTION

2.1 If ONGC finds that the goods supplied are not in accordance with the
specifications and other conditions stated in the order or its sample are
received in damaged condition (of which matter ONGC will be the sole judge),
ONGC shall be entitled to reject the whole of the goods or the part as the case
may be and intimate to the supplier the rejection without prejudice to the ONGC
other rights and remedies to recover from the supplier any loss which ONGC
may be put to, also reserving its right to forfeit the security deposit/performance
bond if any made for the due fulfillment of the contract. The goods shall be
removed by the supplier and if not removed within 14 days of the date of
communication of the rejection ONGC will be entitled to dispose of the same
on account and at the risk of the supplier and after recovering the storage
charges at the rate of 5% of the value of goods for each month or part of a
month and the loss and expenses if any caused to the ONGC, pay balance to
the supplier.

3. REPLACEMENT

3.1 Rejected goods should be removed and replaced within 14 days of the date of
communication of rejection.

4. SUB-LETTING AND ASSIGNMENT:

4.1 The contractor shall not save with the previous consent in writing of the
Purchase Authority, sublet, transfer or assign the contract or any part thereof
or interest therein or benefit or advantage thereof in any manner whatsoever.
Provided nevertheless that any such consent shall not relieve the contractor
from any obligation, duty or responsibility under the contract.

5. BREAKAGE/SHORTAGE

5.1 Claim in respect of breakage/shortages in any case shall be preferred on the


supplier within thirty days from the date of receipt of stores by the consignee
which shall be replaced/made good by the supplier at his own cost. All risk of
loss or damage to the material shall be upon the supplier till it is delivered to
the purchaser/consignee.

6. SECURITY DEPOSIT / PERFORMANCE BOND / CONTRACT SECURITY

(MM/50/2019 dated 04.07.2019)


(MM/107/2023 dated 30.10.2023)
(MM/110/2023 dated 01.11.2023)
(MM/123/2024 dated 16.04.2024)
6.1 For purchases exceeding Rs. 1.00 lakh, the successful bidder, within 15 days
of receipt of order/ letter of award, will be required to send Security deposit in
the form of a NEFT/RTGS/Electronic fund transfer to designated account of
ONGC or in lieu thereof, Performance Bond in the form of an Electronic Bank

341
Guarantee / SFMS Bank Guarantee as per ONGC’s Standard Proforma, for
an amount equivalent to 10% of the contract value. However, the condition will
not be applicable for procurement of materials of proprietary nature from
Original Equipment Manufacturers or Distributors / Sole Selling Agents /
Authorized Dealers of the Original Equipment Manufacturer.

The default/Preferable mode of submission of Security Deposit will be


NEFT/RTGS/Electronic fund transfer or e-BG. However, whenever a bidder
submits SFMS BG, the bidder will mandatorily be required to submit letter from
issuing bank that it is unable to issue NeSL based e-BG as on date. Such letter
should accompany the SFMS BG.

7. CANCELLATION OF PURCHASE ORDER (applicable for purchases up to


Rs. 1 lakh):

7.1 Time and date of delivery shall be the essence of the contract. If the
contractor/supplier fails to deliver the stores, or any installment thereof within
the period fixed for such delivery in the schedule or any time repudiates the
contract before the expiry of such period, the purchaser may, without prejudice
to any other right or remedy available to him, to cancel the contract/PO or a
portion thereof by serving prior notice to the contractor/supplier

8. FAILURE AND TERMINATION CLAUSE/LIQUIDATED DAMAGES


CLAUSE (applicable for purchases above Rs. 1 lakh):

8.1 Time and date of delivery shall be the essence of the contract. If the
contractor/supplier fails to deliver the stores, or any instalment thereof within
the period fixed for such delivery in the schedule or any time repudiates the
contract before the expiry of such period, the purchaser may, without prejudice
to any other right or remedy, available to him to recover damages for breach
of the contract:

(MM/10/2016 dated 23.03.2016)


(a) Recover from the Contractor/Supplier as agreed liquidated
damages and not by way of penalty, a sum equivalent to to ½% (Half
percent) of the contract/supply order price of the whole unit per week
for such delay or part thereof (this is an agreed, genuine pre-estimate
of damages duly agreed by the parties) which the contractor has failed
to deliver within the period fixed for delivery in the schedule, where
delivery thereof is accepted after expiry of the aforesaid period. It
may be noted that such recovery of liquidated damages may be up to a
ceiling of 10% of the contract/PO price of the whole unit of stores which
the contractor/supplier has failed to deliver within the period fixed for
delivery; or

(b) Cancel the contract/PO or a portion thereof by serving prior notice


to the contractor/supplier.

(MM/10/2016 dated 23.03.2016)

342
(c) It may further be noted that clause(a) above provides for recovery
of liquidated damages on the cost of contract/supply order price of
delayed supplies(whole unit) at the rate of ½%(Half per cent) of the
contract/PO price of the whole unit per week for such delay or part
thereof up to a ceiling of 10% of the contract/PO price of delayed
supplies (whole unit). Liquidated damages for delay in supplies thus
accrued will be recovered by the paying authorities of the purchaser
specified in the PO, from the bill for payment of the cost of the materials
submitted by the contractor/supplier or his foreign principals in
accordance with the terms of PO/contract or otherwise.

(d) Notwithstanding anything stated above, equipment and materials


will be deemed to have been delivered only when all its components
and parts are also delivered. If certain components are not delivered in
time the equipment and material will be considered as delayed until
such time all the missing parts are also delivered.

8.2. Levy of liquidated damages(LD) due to delay in supplies : LD will be


imposed on lot wise, item wise and consignee wise unless 75% of the value
ordered lot wise, item wise and consignee wise is supplied within the stipulated
delivery period. Where 75% of the value ordered has been supplied within
stipulated delivery period, LD will be imposed on the order value of delayed
supply(ies) lot wise, item wise, consignee wise. However, where in judgement
of ONGC, the supply of partial quantity does not fulfil the operating need, LD
will be imposed on full value of the PO.

Note: For service contracts value upto Rs. 10.00 lacs the above contract can be
modified based on the nature of service. Standard terms & conditions of the
service contracts can be adopted suitably.

(MM/43/2018 dated 19.11.2018) (MM/49/2019 dated 11.06.2019)


(MM/65/2021 dated 06.04.2021) (Circular No. 05/2022 dated 25.01.2022)
(MM/66/2021 dated 23.07.2021)

MM/65/2021 dated 06.04.2021


8.3 Conditions applicable if the offer is from a Micro or Small Enterprises (MSE)
possessing valid Udyam Registration Certificate as notified vide Gazette notification
no. S.O. 2119(E) dated 26.06.2020(as amended) issued by Ministry of Micro, Small
and Medium Enterprises.

(i) if bidder is a Micro or Small Enterprises (MSE), it shall submit copy of valid Udyam
Registration Certificate as notified vide Gazette notification no. S.O. 2119(E) dated
26.06.2020(as amended) issued by Ministry of Micro, Small and Medium Enterprises
for exemption from furnishing bid security / earnest money deposit and to be eligible
for other benefits as per PPP for MSEs order,2012 subject to following conditions:

a. Bidder is participating in tender as manufacturer of the quoted item and not


as a trader/dealer.

343
In case bidding MSE is owned by Schedule Caste or Schedule Tribe
entrepreneur or owned by Women, valid documentary evidence issued by the
agency who has registered the bidder as MSE owned by SC/ST or Women
entrepreneur should also be enclosed.

(ii) In case participating MSEs quote price within price band of L1+15%, such
MSE shall be allowed to supply a portion of requirement by bringing down their
price to L1 price in a situation where L1 price is from someone other than a
MSE and such MSE shall be allowed to supply upto 25% of total tendered
value.

A sub –targets of 4% within 25% has been earmarked for procurement from
MSEs owned by the SC or ST entrepreneurs and 3% from within 25% has
been earmarked for supply from the MSEs owned by Women entrepreneurs.
Provided that, in event of failure of such MSEs to participate in tender process
or meet tender requirement and L-1 price, 4% /3% sub-target for procurement
earmarked for MSEs owned by SC or ST entrepreneurs and women
entrepreneurs respectively shall be met from other MSEs.

(iii) In case of more than one bidder eligible for purchase preference, then the
eligible MSE(s) shall be allowed to share portion of supply in the following
manner:

(a) In case of more than one such MSE bidder qualifying for 15% purchase
preference, the 25% supply shall be shared equally amongst such MSEs.

(b) In case 25% quantity cannot be further divided, ONGC shall place the order
for supply of 25% quantity to lowest eligible MSE amongst the MSEs qualifying
for 15% Purchase Preference.

(iv) In the opinion of ONGC, if tendered goods/services cannot be divided in


the ratio of 75% / 25%, then ONGC reserves the right to award on lowest
eligible MSEs for quantity not less than 25% quantity, as may be dividable.

For example:
In case tendered quantity is between 1 to 3 (not divisible in the ratio of 75:25), MSE
shall get order for 1 no. only and the rest will go to L-1 (non-MSE bidder). Same
analogy shall be applied for quantities which are not dividable in the exact ratio of
75:25.

Notes:

(i) In case of any other preferential policy applicable in a tender, distribution of


quantities for supply of goods/services among eligible bidders shall be done in
such a manner that eligible bidders get the share of minimum specified percentage
for supply by them.

(ii) In case tendered items cannot be procured from multiple sources or are
absolutely non splitable or non-dividable, PO/Contract shall be placed for supply

344
of 100% quantity to lowest eligible bidder, if any, amongst the bidders qualifying
for purchase preference.

345
Appendix 4 Form for extension of completion date, required due to entire delay
being solely on account of contractor/supplier

OIL & NATURAL GAS CORPORATION LTD

No. Date

Sub: Work/Contract No._____________ dated _____________ for


_____________

Ref: Your letter No._____________________ dated _______________


.

Dear Sirs,

1. You failed to complete the entire work within the contract completion period.
In your letter under reference, you have asked for extension of time for
completion. In view of the circumstances stated in your above referred letter,
the time for completion is extended from __________________ to
_____________________ . Please note that an amount equal to the
liquidated damages for delay in the completion of work after the expiry of the
contract completion period shall be recovered from you as mentioned in clause
______________ for the extended period, notwithstanding the grant
of this extension.

2. The above extension of completion date shall also be subject to the following
further conditions:

a) that no increase in price on account of any statutory increase in or fresh


imposition of Customs Duty, Excise Duty, sales Tax or on account of any other
tax or duty leviable in respect of the materials specified in the said work order
which takes place after ____________________________shall
be admissible on such of the said works as are completed after the said date;
and

b) that notwithstanding any stipulation in the contract for increase in price on any
other ground, no such increase which takes place after _________________
shall be admissible on such works as are completed after the said date;

c) but, nevertheless, the purchaser shall be entitled to the benefit of any decrease
in price on account of reduction in or remission of Customs Duty, Excise Duty,
Sales Tax or on account of any other tax or duty, which takes place after the
expiry of the above mentioned date
namely____________________________________ .
Yours Sincerely

346
Appendix 5 Form for extension of completion date, where delay, in part, is on
account of ONGC

OIL & NATURAL GAS CORPORATION LTD

No. Date

Sub: Work/Contract No._____________ dated _____________ for


_____________

Ref: Your letter No._____________________ dated _______________


.

Dear Sirs,

1. You failed to complete the entire work within the contract completion period. In
your letter under reference, you have asked for extension of time for
completion. In view of the circumstances stated in your above referred letter,
the time for completion is extended from ____________________
to _________________, reserving our right to levy liquidated damages from
you for delay in the completion of work after the expiry of the contract
completion period as mentioned in clause _____________________ for the
extended period, notwithstanding the grant of this extension.

2. The above extension of completion date shall also be subject to the right of
ONGC to claim a reduction in prices on account of reduction in statutory duties
/ taxes etc. which may take place during the extended period of completion.
However, increase in prices during extended completion period on account of
increase in statutory duties/taxes etc. admissible under Change in Law clause
of this work order/contract shall be granted, only if extension is due to delay
on the part of ONGC .

Yours Sincerely

347
Appendix 6 Details of contracts/purchase orders

Details of contracts/purchase orders awarded during the Month_______

1 2 3 4 5 6 7 8 9 10 11 12 13
Tend Item Mode Date of Type Last date Nos of Nos and Nos and Whether Contract Name of Value of
er No. / of Publicati of of receipt tenders names of names of contract No. & date contractor contract
Natu Tende on of Biddin of tenders received bidders bidders awarded and place (in Indian
re of r Invitatio g . not qualified to lowest Rs.)
work Enquir n to Bid (Singl qualified for price tenderer/
y in web e /Two for price evaluation Evaluated
site Bid evaluation L1
syste
m)

(a) Purchase of Capital items

(b) Purchase of Stores items

(c) Purchase of Spares

(d) Charter Hire/Rate Contracts

(e) Turnkey contracts

(f) Other contracts (including civil and electrical works etc.)

348
Appendix 7 Details of contracts executed/completed

(a) Details of contracts executed/completed during the Month_______

1 2 3 4 5 6 7 8 9 10
Tender No. Item / Contract Name of Value of Scheduled Scheduled Actual date Actual date Reasons
Nature of No. & date contractor Contract (in date of start date of of start of of for delay if
work and place Indian Rs.) of work completion work completion any
of work

(a) Charter Hire / Rate Contracts

(b) Turnkey contracts

(c) Other contracts (including civil and electrical works etc.)

(b) Details of Purchase orders executed/completed during the Month_______

1 2 3 4 5 6 7 8
Tender No. Item/Nature of Contract No.& Name of Value of Scheduled Actual date of Reasons for
work date contractor and contract (in date of completion of delay if any
place Indian Rs.) completion of supplies
supplies

(a) Purchase of Capital items

(b) Purchase of Stores items

(c) Purchase of Spares

349
Appendix 8 Details of nomination cases

(MM/51/2019 dated 17.10.2019)

Quarterly Report
Period:
Sub: Details of all works including purchases, Services and sales, and above, awarded on Nomination basis
Delay analysis
Details of purchase Order/Contract(s) w.r.t.
awarded on nomination Basis Whether the processing of
contract has the regular
been tender(s)
concluded
based on the (Applicable
Detailed ongoing wherever the
Reasons with contract with nomination
Whether Details of Date of full same rates, case was
Purchase contracto Approving appraisal to justifications terms & awarded due
Order/ Value r is a PSU Authority Director/ for processing conditions to delay in
SI. contract Name of (Rs. In (indicate Type of (As per MCoDP as the Nomination (YES/NO) finalization of
No No & Date Contractor Lac.) YES/NO) Services BDP) applicable case the regular
tender)
01 02 03 04 05 06 07 08 09 10 11

Signature:
Name of Key Executive:
Designation:
Assignment:

350
(MM/62/2020 dated 02.12.2020)
Appendix 9 Criteria for Ranking of Bidders for Procurement of Premium Bits
on Consignment basis and through out right purchase (Rate Contract)

A. General Information:

Sl. Parameters Allocation of Marks Weightage Marks


No. Factor
1 Experience of Bidder with 20 100 0.05
Bit Years’
Manufacturer experience
(Minimum
Required Others Percentage
experience – 5 to the
Five Years) highest

Maximum
experience 20
years)

Both TCR and


PDC and
others
2. Sales volume of Highest among 100 0.10
Bits for the last the bidders
three years Others Percentage
to the
highest
3. Expenditure on Highest among 100 0.05
R&D for the last the bidders
three years Others Percentage
to the
highest
Total (A) (For 1 to 3 0.20
above)

B. Bit Specific Information


(For both TCR & PDC)
B. 1 For 17-1/2” Bit
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
4.1 No. of Bits Depth in Highest 100 0.20
used for 2000 M & among
deep above. the
formation bidders

351
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
drilling Others Percentage
(Last three to the highest
years)
4.2 Supply of bits (Nos.) Highest 100 0.26
during last 3 years to among
below mentioned the
leading companies: bidders
Others Percentage
1.Shell to the highest
2.BP
3.Exxon Mobil
4.Total
5.Cheveron
6.Conoco Phillips
7.Saudi Aramco
8.Petrobras
9.Statoil
10. Petronas
4.3 Supply of Offshore Highest 100 0.02
bits to among
Indian the
Companies bidders
during last Others Percentage
3 years to the highest
(Nos.) Onshore Highest 100 0.02
among
the
bidders
Others Percentage
to the highest
4.4 Performance of bits
(Last three years)
Best Five Total Highest 100 0.07
bits depth Meterage among
in 2000 M the
to 3999 M bidders
Others Percentage
to the highest
Average Highest 100 0.07
ROP among
the
bidders
Others Percentage
to the highest
Best Five Total Highest 100 0.08
bits depth Meterage among

352
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
in 4000 M the
to 4999 M bidders
Others Percentage
to the highest
Average Highest 100 0.08
ROP among
the
bidders
Others Percentage
to the highest
Best Five
bits depth DELETED
in above
5000 M
Total (B.1) (For 17-1/2” 0.80
Bits)

B. 2 For 12-1/4” Bit


Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
5.1 No. of Bits Depth in Highest 100 0.15
used for 2000 M among
deep to 4000 the
formation M. bidders
drilling Others Percentage
(Last three to the highest
years) Depth in Highest 100 0.15
4000 M & among
above. the
bidders
Others Percentage
to the highest
5.2 Supply of bits (Nos.) Highest 100 0.16
during last 3 years to among
below mentioned the
leading companies: bidders
Others Percentage
1.Shell to the highest
2.BP
3.Exxon Mobil
4.Total
5.Cheveron
6.Conoco Phillips
7.Saudi Aramco
8.Petrobras
9.Statoil

353
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
10. Petronas

5.3 Supply of Offshore Highest 100 0.02


bits to among
Indian the
Companies bidders
during last Others Percentage
3 years to the highest
(Nos.) Onshore Highest 100 0.02
among
the
bidders
Others Percentage
to the highest
5.4 Performance of bits
(Last three years)
Best Five Total Highest 100 0.03
bits depth Meterage among
in 2000 M the
to 3999 M bidders
Others Percentage
to the highest
Average Highest 100 0.03
ROP among
the
bidders
Others Percentage
to the highest
Best Five Total Highest 100 0.05
bits depth Meterage among
in 4000 M the
to 4999 M bidders
Others Percentage
to the highest
Average Highest 100 0.05
ROP among
the
bidders
Others Percentage
to the highest
Best Five Total Highest 100 0.07
bits depth Meterage among
in above the
5000 M bidders

354
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
Others Percentage
to the highest
Average Highest 100 0.07
ROP among
the
bidders
Others Percentage
to the highest
Total (B.2) (For 12-1/4” 0.80
Bits)

B. 3 For 8-1/2” Bit


Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
6.1 No. of Bits Depth in Highest 100 0.07
used for 2000 M among
deep to 4000 the
formation M. bidders
drilling Others Percentage
(Last three to the highest
years) Depth in Highest 100 0.10
4000 M among
to 5000 the
M. bidders
Others Percentage
to the highest
Depth in Highest 100 0.13
5000 M & among
above. the
bidders
Others Percentage
to the highest
6.2 Supply of bits (Nos.) Highest 100 0.16
during last 3 years to among
below mentioned the
leading companies: bidders
Others Percentage
1.Shell to the highest
2.BP
3. Exxon Mobil
4.Total
5.Cheveron
6.Conoco Phillips
7.Saudi Aramco
8.Petrobras

355
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
9.Statoil
10. Petronas

6.3 Supply of Offshore Highest 100 0.02


bits to among
Indian the
Companies bidders
during last Others Percentage
3 years to the highest
(Nos.) Onshore Highest 100 0.02
among
the
bidders
Others Percentage
to the highest
6.4 Performance of bits
(Last three years)

Best Five Total Highest 100 0.03


bits depth Meterage among
in 2000 M the
to 3999 M bidders
Others Percentage
to the highest
Average Highest 100 0.03
ROP among
the
bidders
Others Percentage
to the highest
Best Five Total Highest 100 0.05
bits depth Meterage among
in 4000 M the
to 4999 M bidders
Others Percentage
to the highest
Average Highest 100 0.05
ROP among
the
bidders
Others Percentage
to the highest
Best Five Total Highest 100 0.07
bits depth Meterage among

356
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
in above the
5000 M bidders
Others Percentage
to the highest
Average Highest 100 0.07
ROP among
the
bidders
Others Percentage
to the highest
Total (B.3) (For 8-1/2” Bits) 0.80

B. 4 For 6” Bit
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
7.1 No. of Bits Depth in Highest 100 0.07
used for 2000 M to among
deep 4000 M. the
formation bidders
drilling Others Percentage to
(Last three the highest
years) Depth in Highest 100 0.10
4000 M to among
5000 M. the
bidders
Others Percentage to
the highest
Depth in Highest 100 0.13
5000 M & among
above. the
bidders
Others Percentage to
the highest
7.2 Supply of bits (Nos.) Highest 100 0.16
during last 3 years to among
below mentioned the
leading companies: bidders
Others Percentage to
1.Shell the highest
2.BP
3. Exxon Mobil
4.Total
5.Cheveron
6.Conoco Phillips
7.Saudi Aramco
8.Petrobras

357
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
9.Statoil
10. Petronas
7.3 Supply of Offshore Highest 100 0.02
bits to among
Indian the
Companies bidders
during last Others Percentage to
3 years the highest
(Nos.) Onshore Highest 100 0.02
among
the
bidders
Others Percentage to
the highest
7.4 Performance of bits
(Last three years)
Best Five Total Highest 100 0.03
bits depth Meterage among
in 2000 M the
to 3999 M bidders
Others Percentage to
the highest
Average Highest 100 0.03
ROP among
the
bidders
Others Percentage to
the highest

Best Five Total Highest 100 0.05


bits depth Meterage among
in 4000 M the
to 4999 M bidders
Others Percentage to
the highest
Average Highest 100 0.05
ROP among
the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.07
bits depth Meterage among
in above the
5000 M bidders

358
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
Others Percentage to
the highest
Average Highest 100 0.07
ROP among
the
bidders
Others Percentage to
the highest
Total (B.4) (For 6” Bits) 0.80

C.1: For Ranking of Bit Manufacturers of 17-1/2” Bits


Net Marks for 17-1/2”: Marks in (A) + Marks in (B.1)
C.2: For Ranking of Bit Manufacturers of 12-1/4” Bits
Net Marks for 12-1/4”: Marks in (A) + Marks in (B.2)
C.3: For Ranking of Bit Manufacturers of 8-1/2” Bits
Net Marks for 8-1/2”: Marks in (A) + Marks in (B.3)
C.4: For Ranking of Bit Manufacturers of 6” Bits
Net Marks for 6”: Marks in (A) + Marks in (B.4)

359
Appendix 10 Details and Documents to be submitted for evaluation of Bits under
Procurement on Consignment basis

Parameters Queries Supporting Response Supporting


Documents from Documents
Required bidder enclosed

Experience How long the Annual


company is in the report or any
business of bit published
manufacturing? document
Sales Volume Revenue from the bit -do-
sales for last three
years?
R&D Expenditure on R&D -do-
for last three years

(MM/62/2020 dated 02.12.2020)


Following information is to be provided for 17-1/2”, 12-1/4”, 8-1/2” and 6” Bits
separately. The information required is for the last three years.

Bits Sales Volume of Bits Any Response Supporting


during last three years published from Documents
authentic bidder enclosed
document
Bits used in No. of bits used for Last three
deep drilling Deep Drilling years Bit
Depth 2000M – 3999M record for
Depth 4000M – 4999M 2000M and
Depth above 5000M above depth
Multinational No. of Premium bits Purchase
clients supplied to following reference,
companies during last annual
three years:- reports or
any other
1.Shell authentic
2.BP documents.
3. Exxon Mobil
4.Total
5.Cheveron
6.Conoco Phillips
7.Saudi Aramco
8.Petrobras
9.Statoil
10. Petronas .
Supplies in No. of bits supplied to Purchase
India Indian Companies reference

360
during last three years
for offshore
No. of bits supplied to Purchase
Indian Companies reference
during last three years
for onshore
Performance Best five bit Bit Records
of bits performances in last
three years in depth
range of 2000M-3999M
4000M-4999M Bit Records
Above 5000M Bit Records

361
Appendix 11 Proforma of Undertaking

(MM/113/2023 dated 08.12.2023)


(To be submitted individually by each member of Procurement Evaluation
Committee)

I (Name and designation of Procurement Evaluation Committee Member) do hereby


undertake that:

(i) I do not have any personal interest in the Companies/Agencies participating in


the tender process against Tender No __________________for
___________________________________.

(ii) None of the members of my family and / or my relatives (as per the list
mentioned in Appendix-III of the “Code of Conduct for Board members and
Senior Management Personal’) are proprietor/partner/Director or employee in
the Companies /Agencies participating in the aforesaid tender.

(iii) Further, neither myself, nor any member of my family and / or my relatives (as
per the list mentioned in Appendix-III of the “Code of Conduct for Board
members and Senior Management Personal’) hold more than 2% of the paid
up share capital of Companies/Agencies participating in the aforesaid tender.

I further undertake that any change in the above status resulting in creation of personal
interest during tender processing shall also be declared by me as and when it arises
during tender processing.

I also declare that all the above information is correct to the best of my knowledge.

Signature :

Name :

Designation:

362
Appendix 12 Certificate by the Procurement Evaluation Committee Member

In respect of award of contract against tender no. _____________ for-


_________________, the requisite certificates are hereby authorized by the
Procurement Evaluation Committee Members as under:

Certified that all procedural aspects have been taken care of while formulating the
Recommendations.

Certified that the prevailing CVC guidelines have been complied with at every stage
of tender processing including the final recommendations for award of contract.

Signature of PEC Members

PEC Member Names

Designation

363
Appendix 13 Proforma For Invocation Of Bank Guarantee

Date:

The Branch Manager,*

Subject: Invocation of Bank Guarantee No._______ dated _____ for Rs. _____ valid
upto ____

Dear Sir,

Please refer to your Bank Guarantee(s) No.___ dated ____ for Rs. ____ ( )
and its extension thereof (***) submitted by you in favour of Oil & Natural Gas
Commission, (Please give full address_______) for and behalf of M/s ________
(hereinafter called the “Contractor”) towards Contract No. ______ dated ______
awarded by ONGC to the Contractor as an advance Guarantee/ as Contract
Performance Guarantee/ as Security Deposit/Earnest Money Deposit.(***)

In terms of the aforesaid Guarantee(s) we do hereby make a demand on you to remit


a sum of Rs. _____( ) together with interest (***) to us immediately by means of
Bank Demand Draft in favour of Oil & Natural Gas Commission payable at (Please
indicate a place). This supersedes our conditional claim letter No.______ dated
______. (***)

Kindly hand over the Bank Demand Draft to the bearer of this letter, whose signature
are attested below. Your co-operation in the matter is solicited.

Kindly acknowledge receipt of this letter.

Please treat this matter as Most Urgent.

Thanking You,
Yours faithfully,
For and behalf of
Oil & Natural Gas Commission
Signature of
Shri
Attested
(AUTHORISED SIGNATORY)
*** Strike whichever is not applicable
*To be addressed to Branch of Bank issuing B.G.

CC: Bank’s Head Office


(AUTHORISED SIGNATORY)

364
Appendix-14

(MM/26/2017 dated 21.06.2017)

- Deleted -

365
(MM/04/2015 dated 28.04.2015)

Appendix - 15
Format for preparation of CS

COMPARATIVE STATEMENT OF TENDERS


Indent No………………………….. Name of tender 1. .………………………………
Tender No………………………… opening officers 2. ………………………………
Estimated Value…………………. No. of tender sets issued……………………….
Date of opening………………….. No. of tender sets received in time……………
No. of late tenders received……………………..
No. of tender intimations sent
in case of open tenders………………………..

Sl. Description of Unit Qty. Price paid for the Name of Tenderers and Rates Remarks
No. articles required article on previous M/s……………………. M/s……………………………
occasion Validity Validity
F.O.B. C.I.F. F.O.R. F.O.B. C.I.F. F.O.R.

We certify that except above tenders no other tenders were received at………….hrs. on the ……….and that no departure from the authorised course has occurred in the manner of receipt of above
tenders.

Prepared by: Signature…………………………. Checked by: Signature………………………………….. Vetted by:


Designation……………………… Designation………………………………… Finance & Accounts Officer
Date………………………………. Dated……………………………………….. Date…………………………

a) The tender of Shri / Sarvashri…………………………………………… (Sl. No.……………….) is recommended for acceptance.

b) Orders of the officer competent to accept the tender


(Signature of the recommending officer)
The tender of Shri / Sarvashri……………………………(Sl. No……………………) has been accepted by me on……………………………
(Signature of the officer authorising acceptance)

Note: Any reason for accepting other than lowest tender and any remarks are to be stated here.

Sheet of important terms and conditions enclosed.

366
IMPORTANT TERMS AND CONDITIONS OF TENDER NO.

Name of the Tender

Rate of Exchange adopted


as ruling on date…………………
_____________________________________________________________________________________________________________________________
Discount offered if any

Price variation sought in


respect of

Terms of delivery

Delivery period

Terms of payment

IAC included or extra

Any other special condition

Prepared by: Checked by: Vetted by:


Date Date Date

367
(MM/04/2015 dated 28.04.2015)
Appendix-16

DEFINITION –‘WORKS’
Works
“Works” shall mean: any activity/group of activities/turnkey or otherwise such as
construction works inclusive of civil, mechanical, electrical, C&M, operation, pipelines and
oil field installations for Onshore & Offshore, repair & maintenance, materials and services,
related to these installation/works undertaken to achieve the desired objectives of ONGC
but not limited to:

Civil works
Related to roads, foundation & other works of Drill sites, Work-over rigs and all ancillary
works connected with operational requirements. Residential/Non-residential buildings,
RCC/Steel storage tanks, boundary walls, roads, estate/land development including
horticulture, landscaping, plantations, interior works, customized furniture/furnishings etc.
Estate repairing & maintenance and upkeep in field and plant areas / offices / townships
etc. including water supply etc.

Electrical works
Sub-stations, power supply, external and internal cabling/Electrification, HVAC
Repair & maintenance of electrical installations/facilities in field & plant
areas/offices/townships etc. (through one time/annual maintenance contracts etc).

C&M works
Construction/installation of new pipelines for well fluid, gas lift, water injection, effluent etc.,
Collector / trunk pipe lines, cathodic protection, oil field facilities for production etc., Steel
storage tanks, other field structures/facilities etc, erection of equipment, piping, and Repair
and maintenance of above, including re-coating/painting etc.

Instrumentation and E&T works


Instrumentation works Oil field instrumentation, SCADA and tele-communication etc.
including related cabling, ducting, supply of instruments, fittings, fixtures and ancillaries,
control room panels, meters and consoles etc. and maintenance of above.

Offshore works
Offshore works such as construction of well platforms, process platforms, laying of Sub-
marine pipelines, Sub-marine cables and related activities like Survey, Engineering,
Procurement, Fabrication, Load-out, Tie-town/sea-fastening, Tow-out/sailed-out, Sea-
transportation, Hook-up, commissioning of Process and Well Platforms at new and existing
locations. Inspection/Maintenance/Repair/Revamp/Renewal of facilities in offshore i.e.,
submarine pipelines, cables, well & process platforms etc.

Dry Docking works


Works related to Dry Docking and refits of offshore vessel, rigs and associated works.

O&M of Vessels
O&M activities related to Geophysical Vessels, GTVs, OSVs and other specialized
vessels.

Onshore works
Installation & commissioning and revamp of onshore installations such as oil & gas
processing complexes, effluent treatment plants, water injection plants, power generation
plants, over head transmission lines, Operation, repair & maintenance contract and annual
rate contract related to above installation.

Rigs and Equipments repair works

368
Repair and maintenance of Rigs, equipments, etc. for drilling, well services, logging
services-both for onshore and offshore.

369
(MM/47/2019 dated 31.01.2019)

Appendix 17

Standard Operating Procedure (SOP) for the destination inspection i.e.


sampling & testing of Chemicals and payment thereof

Sl. No. Role/Activity Responsibility Timeline for Cumulative


Completion Days
1 Creation of Inward Entry Receipt Section within 1 day 1
(after final delivery)
2. Intimation to Indentor/User (Chemist) for Receipt Section within 1 day 2
Inspection and testing
3. Sample Collection (including intimation to Indentor within 4 days* 6
supplier for deputing his representative for (Chemist)
sampling giving at least two days time) and
dispatch to designated Lab
4. Testing and Issuance of Report after receipt Designated Lab within 10# days 16
of sample
5. Issuance of QCC in ICE after receipt of Indentor within 1 day 17
Test Report (Chemist)
6. Raising of GR 103 after receipt of Test Report Receipt Section within 2 days 19
and QCC conforming to Technical
Specifications and handing over to Stock
Holder
7. Taking the material on charge, raising GR Stock Holder Within 1 days 20
105 in the ICE system
8. Release of Payment Finance Within 3 days 23

* additional 1 day transit time for Outstation lab.


# For bactericide 35 days shall be allowed.

Note:
Above timelines for completion shall supersede similar provisions appearing
elsewhere in IMMM.

370
(MM/32/2018 dated 28.03.2018)
(MM/113/2023 dated 08.12.2023)

Appendix-AA

Standard Operating Procedure (SOP) for signing of the Contract after


placement of NOA

Sl. No. Provisions/Situation Action required


A. Submission of acceptance of NOA by the successful bidder (applicable for all type of
procurement):

1. NOA should clearly stipulate that the In case confirmation is not received within 03 days,
successful bidder must confirm within 03 the dealing officer shall issue reminder(s) to
days of issue of the NOA that PBG shall be Contractor.
submitted within 15 days from the date of
NOA and Non-submission of PBG within
stipulated period may lead to annulment of
the contract and action against contractor
as per tender/NOA conditions.

B. Submission of Security Deposit/Performance Security(SD/PS) by the contractor


(applicable for all type of procurement):

1. The PBG is not submitted within the Under consultation with Indentor, the dealing officer
stipulated 15 days of issue of NOA, and the should examine and recommend extension as per
Contractor requests for additional time (up para 16.6.5(g) of IMMM or termination of the
to 02 weeks) for submission of PBG, giving Contract/NOA as per para 23.2.1 of IMMM, as the
reasons for the delay. case may be.

The Contractor requests for a further The process as above shall be repeated.
additional time (up to 02 weeks) for
submission of PBG, giving reasons for the
delay.

2. The extension has been granted (upto 02 Concerned Dealing officer shall initiate action inviting
weeks /further additional 02 weeks, as the Procurement Evaluation Committee (PEC). PEC to
case may be) but Contractor fails to either decide further course of action and the request shall
submit PBG be agreed to only in exceptional circumstances with
Or approval of Competent Authority in line with Para
16.6.5(g) of IMMM OR action may be taken to
The contractor requests for extension for terminate the Contract/NOA as per para-23.2.1 of
submission of SD/PS beyond 04 weeks IMMM.
after the stipulated period of 15 days giving
reasons for the delay.

3. NOTE: Forfeiture of EMD: After placement of LOA, concerned Dealing officer of MM shall ensure
validity of EMD till receipt of acceptable SD/PS. If the successful bidder neither submits SD/PS nor
extends EMD, ONE week prior to expiry of the EMD, the Concerned MM officer shall put up the
case to Level-1 executive for forfeiture of EMD

371
C. Signing of Contract (applicable for services contracts and LSTK only):

1. In case standardized or already vetted (at No further vetting should be necessary.


tendering stage or during previous tender)
tender/contract conditions are used.

2. The draft contract document has been The Dealing officer shall send the draft Contract
prepared based on the tendered contract document to the Contractor within 07 working days
conditions and the offered conditions of issue of NOA with a remark that the draft document
accepted by ONGC. is based on the tendered contract conditions and the
offered conditions accepted by ONGC.

3 The vetting of any new specific non- The Finance/Legal/MM sections (as the case may
standardized / already not vetted contract be) shall vet within 4 working days of its submission
conditions, which emerges during the for vetting, limited to the specifically non-
tendering stage. standardized / already not vetted proposed contract
conditions. The same should be explicitly informed to
the contractor for their acceptance, informing them
that in case their acceptance/comments are not
submitted within 01 week, it will be deemed as
accepted on the part of the Contractor and no further
claim in this regard shall be entertained at later stage.

4 The comments have been received from No modification in the draft contract should be
contractor on the draft Contract document allowed which is not as per the tender
within one week. conditions/other conditions as agreed upon by
contractor and ONGC during tender finalization.

The comments shall be examined and in case


corrections in the draft contract are required to be
made due to some typographical or inadvertent
errors noticed by contractor/ONGC and
corrections/modifications are in line with the tender
conditions/other conditions as agreed upon between
ONGC and contractor during tender finalization
process, these corrections should be made with the
approval of Contract signing authority.

5 The draft contract is ready for signing, The contract shall be signed within 15 days of receipt
of acceptable PBG.

6 For any reasons whatsoever, the contract is (MM/112/2023 dated 30.11.2023)


not signed within the stipulated time. Dealing Officer shall bring to the notice of the CPA
(concerned L-1 executive in case of CoDP and
MCoDP level cases) giving full justifications and the
further tentative time by which contract shall be
signed.

372
Circular No. 24/2018 dated 25.05.2018
Appendix PBC

FORMAT FOR UNDERTAKING TO ATTEND PRE-BID CONFERENCE


( to be submitted on Firm’s/Company’s Letterhead)

I__________, age ____years Son/ Daughter of ____________, resident of


________________________________________ do solemnly affirm and
state as under:

1. That I am the ______________________ <<Designation of the authorized


signatory>> and I am duly authorized to furnish this undertaking on behalf
of_____________ (Name of the company).

2. That__________ (Name of the company) is desirous of submitting its bid


against tender no___________ dated ______ for ________ item / works
(Name of tender).

3. That we are deputing our representative (as per following details) who
is/are competent to present our queries in Pre-Bid Conference.

Name of authorized representative to attend Pre-bid


Conference:_____________________________________________

Designation:_____________________________________________

Mobile No.:______________________________________________

4. That we are in the business of providing similar Services/Goods as per


tender requirement.

(Authorized signatory of bidder)


Seal:
Date:
Place:
Note:
1. In tenders for LSTK Projects, representative of proposed consortium members
and / or sub-contractors and / or vendors who are competent to present their
queries in the pre bid conference shall be allowed to participate in the pre-bid
conference along with the bidder subject to prior submission of details to ONGC as
stipulated above.

2. Above undertaking shall be submitted by the bidder alongwith Pre Bid queries
within prescribed date, failing which the bidder shall not be allowed to attend pre-
bid conference.

373
Warehouse Management, Inventory
Management, Stock Verification and
Disposal

374
35 Introduction

35.1 Individual CRC entities (assets/basins/plants/services/institutes etc.) are


responsible for respective targets and other Corporate requirements including
Inventory management and control, Stock Verification and Disposal. The
coordination of all functions of Inventory Management, Stock Verification &
Disposal including monitoring, achievement of targets and fulfilling statutory
requirements will be done by each work center with its own resources under
CRC, who will exercise administrative and functional control over manpower for
the above purpose. All work centres have to intimate the progress related to all
inventory management function to Corporate Inventory management on monthly
basis.

35.2 Inventory Management Team Responsibilities: For this purpose, all work
centres shall constitute a full time Inventory Management Team with the approval
of concerned Key Executive. This team will have the following responsibilities:

35.2.1 Act as MRP controller for planning of requirement of materials.

35.2.2 Check the Inventory level of items being procured, which includes Stock
position of the item under various plant, non-moving Inventory at work centre
level, qty. on order, past consumption under ABC & XYZ analysis, safety and
buffer Stocks, lead time analysis etc. while releasing the PRs at MRP level.

35.2.3 Assist in the quarterly monitoring of inventory.

35.2.4 Act as co-coordinator with CIM, Dehradun.

35.3 CODIFICATION

35.3.1 While using existing material codes and requesting for new material codes
through ICE, indentors have to check carefully for existing codes while
generating PR. If manufacturer’s part nos are superseded, codes available with
old part nos should only be used by creating MPN(Material Part Number) in
SAP. In case of stores complete specifications required for procurement of right
material should be given so as to prevent any duplication of material codes.

35.3.2 Further indentors have to provide details like complete specifications of material
in case of stores &for spares details like part nos., OEM make, model &name
of equipment with vendor/asset codes for release of blocked codes in SAP
system.

35.3.3 In case of procurement of capital items, asset codes available on generic


names should be used and detailed specifications can be provided in PR only.

375
35.4 Insurance Items

35.4.1 Insurance spares, against each equipment, will be identified by the user
department and Chief - Technical services will approve the list of such
insurance spares.

35.4.2 Similarly, there could be some stores items which can be identified as insurance
items, since they are not expected to be used in normal operations but need to
be kept in stock for emergency purpose since they have long lead time and
cannot be procured off the shelf. Such items also need to be identified by the
respective Chief of Services.

35.4.3 The insurance spares on receipt in stores shall be transferred to the storage
location meant for insurance spares by Stock holders.

376
36 Clearing and Forwarding

36.1 C&F section responsibility

36.1.1 The Clearing and Forwarding Section will be responsible for correct
registration, linking and disposal of all transit documents, clearing / receipt /
despatch of materials by Air / Rail / Road or by post and preparing necessary
documents connected with their work.

36.2 Receipt of transit documents and creation of inward entry

36.2.1 Transit documents such as Railway Receipts (RR), Parcel Way Bills (PWB),
Goods Transport Receipt(GTR) and Convoy Notes in respect of materials
dispatched by the consignor will be received from the Central Diary Section
and an inward entry created against each document in the ICE system within 5
days of receipt of such document from Central Diary section. The details of the
transit documents are captured in inward entry. Inward entry should be updated
in case any additional details need to be captured.

36.2.2 C&F section will regularly generate the report (highlighting the pending inward
entries for which RCN has not been created) from ICE system and take
necessary action with carrier(s) to expedite delivery of materials which have
not been received within the normal time allowed for transit.

36.2.3 In all instances of non-receipt of consignment(s) within the normal time limit,
local authorities will be contacted to initiate action to locate the
consignment(s).

36.2.4 If, however, the materials are not received within the reasonable period and
LRs/ RRs / PWBs/AWBs remain outstanding, a formal claim on the Railway /
Carriers will be lodged by the Clearing & Forwarding Section and intimated to
the Officer-in-Charge, Stores. This submission of the claim will not be
delayed beyond one months from the date of despatch of materials by the
consignor and should ideally be done within 7 days beyond the expected date
of arrival.

36.2.5 If the materials arrive at the Railway Station prior to receipt of LRs/ RRs / PWBs/
AWBs, delivery of the same should be taken against the Indemnity Bonds.
Necessary record is, however, to be maintained on in the ICE system at inward
entry stage. LR/ RR / PWB/ AWB will be tendered to the Railway as soon as
they are received from the consignor and the Indemnity Bond cleared.

36.2.6 Postal Despatch Advice Notes are also to be entered in the ICE system. All
instances of non-receipt of post parcels within one month from the date of
the despatch will be reported to the consignor for taking up the matter with
postal authorities. In case where the materials have been received prior to
the receipt of postal despatch advice from the consignor, proper linking will
be maintained in the ICE system

377
36.3 Arrival of materials and creation of RCN

36.3.1 The materials may arrive in Clearing & Forwarding Section as follows

a. By full wagons where Railway sidings is provided inside the stores-yard.

b. By full wagons or piece consignments at Railway Station where the


Railway sidings is not provided.

c. By Road Transport.

d. By Post.

e. By Air.

36.3.2 When full wagon(s) is / are received at the Railway Station or at the Railway
siding inside the Stores yard, immediate steps will be taken to unload the
wagon(s) to avoid any demurrage. If due to any unavoidable circumstances
the wagons cannot be unloaded within the period authorised by the Railways,
necessary reasons therefore will be recorded in the Remarks column against
the Inward entry in the ICE system.

36.3.3 Immediately on receipt of full wagon(s), these will be examined in the presence
of the Railway representative to ensure that there are no apparent indications
suggesting any loss or damage to material enroute and all locations / seals
both of consignor and Railways are intact.

36.3.4 Particulars in respect of wagons on receipt will be entered in ICE system.

36.3.5 In case of stores received after trans-shipment, the original wagon No. will be
entered in the Remark column in the ICE system.

36.3.6 Wagons will be opened and unloaded in the presence of Railways


representative and checked against the Convoy Notes. In case of any
discrepancy, a certificate to the effect will be obtained from the Railway
representative for use in support of the claims. The discrepancy will also be
noted against the inward entry in the ICE system. Immediate steps will be taken
to lodge the claim with the Railways authorities.

36.3.7 Upon receipt of material, the clearing and forwarding section will make a
Receipt Convoy note within 3 working days in the ICE system and handover the
material to receipt section.

36.4 Damages/discrepancy in receipt of materials

36.4.1 Before collecting the material, the representative of the Clearing and
Forwarding Section will ensure that the packages are in good condition and
show no signs of any loss or any damages to the materials enroute and the
weight of the packages / consignments matches with the weight shown on
the LR/ RR / PWB/ AWB. In case of sealed packages, all the seals will be
checked to ensure that these are intact.

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36.4.2 In case the packages / consignments are damaged or there is any
discrepancy in weight, open delivery will be demanded from the Railways and
the contents of the packages will be checked in presence of Railways
representative. Any discrepancy found will be noted in ink on the Railway
Delivery Book and the LR/ RR / PWB/ AWB and relevant packing slip will
be endorsed with details of the discrepancy. In case of Road Consignments,
open delivery shall be taken in presence of representative of transport
company, listing out the items and quantities received. The open delivery report
shall be got endorsed by the transporters’ representative and handed over to
receipt section for further action along with the consignment.

36.4.3 In case the consignment is received in damaged condition, the necessary


information will be given in the Remarks column of the Convoy Note.

36.5 Raising of discrepancy report

36.5.1 Materials which are received in packed cases or otherwise, are to be checked
with the supplier's packing list. In case any discrepancy is noticed, this is to be
recorded in the Discrepancy Report on the ICE system. Discrepancy Report
should clearly bring out the conditions of packing as received, the gross weight
and net weight as verified. Digital photographs of the consignment clearly
bringing out markings on packages and showing the relevant conditions of
packaging, items may also be taken for records and substantiation of claims.

36.5.2 For any discrepancy, where the claim needs to be taken up with the
supplier(such as Short Supply or Non-Conformity with order specification in
case of inspection at destination), purchase section will be informed as soon as
discrepancy is notices and to send Discrepancy report along with photographs
(if available) to them. Purchase Section will prefer the claim with the supplier.
The Purchase Section on their part will take immediate action.

36.5.3 For claims against transporter or insurance such as Transit loss/Transit


damages, the C&F section will take up the claim as applicable for indigenous
consignments. In case of import Consignment, the Discrepancy Report along
with photographs of consignment, if relevant will be sent to T&S Section who,
on their part, will prefer the detailed claim with the insurance company.

36.5.4 The preliminary claim indicating the consignment and insurance policy
reference and quantum of losses/damages be lodged on the insurance
company as well as the transporter immediately. It must be ensured that the
discrepancy reports reach the consignor within the period of insurance so that
claims do not become time barred. The inspecting authorities must
complete the inspection expeditiously so that the claims can be preferred on
the insurance companies within the validity period. Intimation regarding the
discrepancy should be sent to supplier, transport, purchase section or T&S as
the case may be.

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36.5.5 Discrepancies should be raised for all incidents and claim taken up with the
respective parties. In case the claim is to be settled with the insurance
company, claim should not be made for values for which claim cannot be settled
due to value being under the “exclusion clause”. Such cases are to be referred
to the purchase section to obtain necessary write-offs.

36.5.6 In charge, warehouse will be responsible for managing and closing out all
discrepancies raised by C&F, in association with attached finance. The MM
officer(s) not below E-1 level will have full powers to approve and countersign
a Stock Discrepancy Report and direct follow up action. Officer(s) of E-0 level
shall exercise these power upto Rs 10,000.00. However, where materials
management officer of E-1 level is not posted, E-0(MM) may exercise full
powers.

36.6 Despatch of material to outstation

36.6.1 When any materials are required to be despatched from the MM (Stock), where
support of C&F is required, the stock holder will intimate the Clearing and
Forwarding section.

36.6.2 The Clearing and Forwarding section will take immediate steps to arrange the
despatch of the materials as required i.e. by Rail/Road/Post.

36.6.3 Before taking over the packages for despatch, the Clearing and Forwarding
Section will sign the Goods Issue Voucher copy of the Stock-holding section
indicating thereon the time and date when the packages were taken over by
them.

36.6.4 In case of full wagon loading, the existing regulations covering the demand of
wagons will be observed.

36.6.5 Wagons will be loaded to the full capacity considering the type and weight of
the items being loaded. If the materials are to be despatched needing a number
of wagons, urgently required materials are to be loaded and dispatched first

36.7 Preparation of Despatch Convoy Note

36.7.1 Despatch Convoy Note is to be prepared in the ICE system. C&F will obtain the
signature of the transporter on a copy of the DCN and keep for their records.

36.7.2 When any parcels is despatched by the Post, necessary records will also
be maintained in the ICE system and postal receipt handed over to the
Stock-holder for record. Necessary receipt of such postal Receipt is to be
taken by the Clearing and Forwarding Section from the stock holder.

36.8 Escorting of materials

36.8.1 When any materials are sent in open wagon, suitable escort is to be arranged
to accompany the wagons, to avoid pilferage enroute.

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36.8.2 During the transit by Rail, delay may take place. The movement of the wagons
may, therefore, be expedited at the station where the materials are likely to
be transhipped.

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37 Transport and Shipping

37.1 T&S section responsibility

The transport and shipping section will be responsible for Insurance from warehouse
to warehouse, custom clearance, seaport/airport clearance, payment of custom duty,
port/airport charges, freight etc. in terms of contract, obtaining delivery from the carrier
and despatch of imported material to ultimate consignee.

37.2 Preparation for receipt of material

37.2.1 T&S section requires following document for clearance of imported material:

1. Copy of Purchase Order

2. Advance Shipping intimation indicating Vessel Name, BL/AWB No. &


date, Port/Airport of Loading & Discharge, Invoice No., Date & Value,
Description of goods, No. of Packages and Weight, etc. for insurance
purpose immediately after despatch of Goods and but not later than the
day before landing of the consignment at port/airport of destination

3. Advance set of documents(non-negotiable) like copy of Bill of


Lading/AWB, Commercial Invoice, Package wise packing list with weight,
dimension and contents of each package, certificate of country of origin,
technical broachers etc as per purchase order.

4. Essentiality Certificate wherever applicable.

5. EPCG Licence wherever applicable

6. Other licences/permissions such as explosive license as applicable for


import of such items.

37.2.2 Concerned Department should ensure that the above documents are made
available to T&S well before landing of consignment at port/Airport of discharge.

37.2.3 The purchase section will act as a facilitator to ensure that the required
documents are sent to T&S in advance.

37.2.4 On receipt of shipping intimation, T&S Section will obtain insurance cover for
the consignment on warehouse to warehouse basis. Value of consignment for
insurance purpose will be as under:

1. Material Cost (FOB Value)

2. Ocean Freight

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37.2.5 The T&S will take an annual open cover for insurance of the material expected
to be received from any of the subsidiaries of the General insurance corporation
of India after calling sealed quotations in bids. Information about these cover
for insurance should be conveyed to purchase authorities and ultimate
consignees. T&S will also maintain advance premium deposit with the
insurance company based upon the premium requirement from past
experience. In case of bulk cargo/high value cargo, Purchase Section may
provide or cause supplier to provide advance intimation to T&S prior to
shipment to adequately enhance the premium deposit to keep the insurable
interests under the open cover duly protected.

37.3 Arrival of material

37.3.1 On availability of all the documents and after landing of material, T&S section
shall file bill of entry with Customs for clearance. T&S section shall make all
necessary payments for obtaining delivery, for example:

1. Port/Airport/CFS charges to port/Airport/CFS Authorities

2. Custom Duty to Customs

3. Freight and allied charges to shipping/Air consolidation agents

4. Stamp Duty to State Govt.

5. Insurance charges to insurance company

37.3.2 T&S Section may maintain PD accounts with concerned authorities wherever
possible for ease of payment.

37.3.3 The insurance cover shall be suitably extended by T&S Section to ensure that
the cover does not expire before material reaching the ultimate consignee, even
in case of CIF shipments. In case of CIF shipments, Purchase Section should
ensure that the insurance cover is on warehouse to warehouse basis and the
validity of insurance remains for 90 days after discharge of the cargo at
discharge port/airport. If extension in CIF shipment is required due to supplier
providing inadequate insurance cover, the same will be brought to notice of
purchase section for settling with the supplier. However, T&S office to ensure
that material are covered under valid insurance policy till it reaches to ultimate
consignee stores.

37.3.4 The material consignment will be checked against shipment documents and in
case of any shortages/damages identified at port, T&S Section should raise
the discrepancy to purchasing authority and lodge insurance claim.

37.3.5 Upon clearance of material, the T&S section will make an inbound entry in the
ICE system.

37.3.6 As soon as material has been cleared from the port and despatched to ultimate
consignee, an intimation to this effect shall also be sent to MM and F&A
Department indicating the following:
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a. Date of arrival of consignment at seaport/airport

b. Date of receipt of documents from the supplier

c. Date of clearance of material at seaport/airport

d. Amount of demurrage/container detention paid due to:

i. Late receipt of documents from the supplier

ii. Delay in negotiating the documents

iii. Defective documents viz invoice not in accordance with supply order;

iv. Non-availability of packing list

v. Non-adherence to supply order conditions

vi. Non-availability of valid essentiality certificate

vii. Non-availability of bank negotiated documents

e. Whether any shortage/damage/loss has been noticed after the material


landed at the port and upto the time it is despatched to ultimate consignee
If so, details of the claim lodged with foreign underwriter, its Indian agent
and carrier.

f. Date of despatch of material to ultimate consignee

37.3.7 The responsibility of lodging claims for any discrepancy noticed till dispatch of
material from port rests with T&S. T&S will lodge a claim against transporter or
insurance company, as applicable and close out the discrepancy. The
information for the same will be sent to Purchaser, Indentor and Finance. In
case the claim is to be settled with the insurance company, claim will not be
lodged for values for which claim cannot be settled due to value being under
the “exclusion clause”. For such cases, intimation shall be sent to purchase
section for obtaining necessary accounting adjustment.

37.3.8 In case the carrier or underwriter informs, after claim is lodged that the material
was not originally shipped by supplier although it was manifested for shipment,
the supplier or freight forwarder has to make good the losses. Such information
must be sent to the Purchase department who will then settle the claim with the
concerned supplier.

37.3.9 T&S shall take all necessary steps for timely clearance of material and to
transport the material to avoid any demurrage charges. However, in case of
delays in clearance of material and leading to incurrence of demurrage charges,
intimation for recovery/write-off/ adjustment will be sent to the concerned
department.

37.4 Transportation and unloading of material (General)

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Whenever the POs are placed with delivery conditions on Ex-works basis,
nomination of transporters for lifting the material and arrangements for
transportation of material from firm’s premises should be made without any
delay, as per the conditions of order. Also, in case of transportation of material
through the suppliers trailers against delivery on FOR destination basis,
immediate arrangements should be made for unloading of the materials at
ONGC’s store formations to avoid unnecessary detention of supplier’s trailers.

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38 Receipt & storage of Material
38.1 Introduction

a. The function of the receipt section is to receive the material either through
Clearing and forwarding sections, direct delivery or Transport and
shipping division, check the material against supply orders/convoy notes
and pass on to stock holders for storage

b. The stock holder's responsibility is to receive the material from Receipt


sections or material sent back by user, store the material as per guidelines
to maximise shelf life, follow "First in first out" and issue the material to
user against indents.

c. All material must follow the standard procedure of receipt into main
warehouse before being issued to user group except in cases of
emergency where the material can be delivered directly to user group and
relevant entries created in the ICE system. Where exigencies of work do
not allow routing of material through stores approval of concerned key
executive should be obtained by the indentor/user for direct collection of
material from vendor. Such approval should be forwarded to store
formation along with pre-receipted indent within 15 days of direct collection
of material. Items procured under emergency must be tracked by user
group for immediate consumption.

d. In-charge Warehouse will ensure that the rules and regulations issued
from time to time on Materials Management by the Corporation are
followed by all the Sections under him to maintain proper control.

38.2 Receipt of material

38.2.1 Arrival of material at Receipt section and raising of GR 103

a. Copies of all supply orders placed by the Procurement Section are to be


sent to the Receipt Section. The Receipt Section will maintain record of
the supply orders .

b. Purchase section will intimate the receipt section upon dispatch of material
by supplier to enable Receipt section to plan for their receipt

c. Upon arrival of material in the receipt section, the receipt section will take
over the material and sign the Convoy Note to be handed back to the C&F
section or transporter as applicable. Receipt section will then make an
inward entry in the ICE system within 2 working days and notify QAD(if
required).

d. The material is to be checked with the supply order and Convoy Note.
Receipt Section will engage the QAD for "inspection at destination" items
and user group(if required) for TPI items. After the completion of
inspection, necessary Goods Receipt Voucher will be created in the ICE
system (within 7 working days of receipt of material) linked to the purchase

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order. The Receipt section shall escalate the issue to higher levels to
ensure timely creation of GRV.

e. Materials Management Officer authorised by In charge MM shall be


provided access in the ICE system to create Goods Receipt Voucher. In
case the quality of the material received is required to be referred to
external expert(s), the Receipt Vouchers for such materials have to be
prepared but with the system flag defined to block the issue of such
material till the technical expert approves of the quality of the material.

f. All packing material received along with the materials is also to be


received and entered in the stock register especially opened for packing
material. Any packing material issued for packing purposes or otherwise
is also to be properly recorded by following normal procedure of Receipt
and Issue.

g. No GRV will be raised for petty purchases of consumable items as per


BDP.

(MM/69/2021 dated 20.08.2021)


h. The SAP has been designed to ensure that no GRV can be prepared
unless a QCC is issued in the system by QAD or Regional Chemical lab
in case of chemicals, except items listed in Manual. Where material has
been inspected by a third party since third party is not authorized to
generate QCC in the system, in such cases concerned indentor shall
generate QCC in the SAP as per para 21.1.13.

i. In addition to any other responsibility mentioned elsewhere, following


Documents required alongwith supply of goods shall also be reviewed by
the Receiver of Goods (I/c-Receipt/Indentor, as the case may be):

1. Copy of Tax Invoice


2. Proof of dispatch (RR/GCN/LR/e-way bill etc.) .
Copy of the e-way bill / e-way bill number(Wherever applicable)
3. Satisfactory inspection report/TPI report & QCC issued by
authority mentioned in PO, wherever applicable

Note: Based on the certification from receiver of goods, the concerned


store formation (I/c-receipt) raising the GRV shall check all the documents
and prepare GRV as per guidelines on the subject. .

38.2.2 Raising of discrepancy report

a. Upon receipt of material, the receipt section will check the material against
the packing list/Receipt Convoy Note /Inbound entry/ Goods Issue
voucher as the case maybe. In case any discrepancy is noticed, this is to
be recorded in the Discrepancy Report on the ICE system. Discrepancy
Report should clearly bring out the conditions of packing as received, the
gross weight and net weight as verified. Digital photographs of the
consignment clearly bringing out markings on packages and showing the

387
relevant conditions of packaging, items may also be taken for records and
substantiation of claims. Intimation regarding the discrepancy should be
sent to supplier, transporter, purchase section or T&S as the case may be.

b. For any discrepancy, where the claim needs to be taken up with the
supplier(such as Short Supply or Non-Conformity with order specification
in case of inspection at destination), purchase section will be informed as
soon as discrepancy report is generated and Discrepancy Report along
with photographs of consignment sent to them. Purchase Section will
prefer the claim with the supplier and/or Insurance Company, whichever
applicable. The Purchase Section on their part will take immediate
action so that the claims do not become time barred. In such a case,
the consignee receipt section shall advice the concerned purchase section
regarding the claim on the supplier’s Security deposit / PBG until the issue
is settled.

c. In case of damaged delivery, the Receipt section will take up the claim with
the transporter and/or arrange the survey and lodge claim on the
insurance company as applicable. In case the claim is to be settled with
the insurance company, claim should not be raised for values for which
claim cannot be settled due to value being under the “exclusion clause’.
For such cases, intimation shall be sent to purchase section for obtaining
necessary write-offs.

38.2.3 Transfer to stockholder

a. The receipt section will segregate items stock holder wise and pass on the
items to respective stockholders for storing into warehouse. Items blocked
for issue till approval from technical expert will be highlighted to stock
holder separately to be kept at a separate location for easy identification.

38.3 Storage into main warehouse

a. To identify the materials from the respective suppliers, before binning


the materials, one representative sample from the consignment will be
attached with the identification card, which will indicate :-

i. Receipt Voucher No. and Date


ii. Nomenclature
iii. Part No.
iv. Location / Bin No.

b. The stock holder will receive material from the Receipt Section for the
material identified for storage into locations under his responsibility.

c. The materials will then be passed for binning.

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d. To ensure that there is no wrong binning, fresh consignment to be binned
will be compared with the consignment already lying in the Bin before
binning. If the consignment does not tally, a recheck should be
undertaken and correct Bin No. re-allocated. In case of error in
inspection / acceptance, attention of the QAD will be drawn.

e. As far as possible new receipts will be so arranged in the Bins that these
are last to be selected for issue so that proper turnover of the stock is
maintained.

f. Prior to binning action, the quantities already held in Bins will be checked
and determined whether sufficient room exists in the Bins to
accommodate the total quantities received. If there is insufficient place in
the Bin to accommodate the whole of the new receipt in the Bins, a new
location, preferably in the vicinity of old location, will be created. A GRV
will be subsequently raised in the ICE system(within 2 working days of
taking over material from receipt section) capturing details on storage
location and quantity stored against each material code.

a. The following guidelines will be followed for stocking of material:

i. All materials will be kept in Racks / Bins.


ii. All Racks / Bins will be given location Nos. The same is to be
recorded in the ICE system.
iii. All materials must be properly preserved as per guidelines framed for
storage of material as per recommendations provided by the supplier.
A separate policy on Storage and Preservation has been issued,
which should also be referred to while storing.
iv. While stocking materials, the heavier items will be kept at lower
rungs of the racks and lighter on higher ones.
v. Fast moving items should be stored at easily accessible place and
to the nearest point of issue.
vi. Stocking of the items should be so arranged that the principle of 'First
In' 'First Out' (FIFO) can be easily followed.
38.4 Issue of material

38.4.1 Raising of STO/Reservation

a. User should raise STO for items which are expected to be consumed over
a period of time at site and exact quantity and cost object (against which
the material is to be booked) is not known at the time of raising of STO.
Thus, inventory at site for such needs to be tracked for such items.

b. Items which don’t fit the above criterion/General consumable items should
be issued through reservation route.

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c. The indent will have the CPF number of employee assigned to receive the
material at site.

38.4.2 Preparation of Goods Issue Voucher and transfer of material to site/other


main warehouse

a. Materials Management Officer authorised by In-charge MM will be


provided access in the ICE system to raise a GI.

b. The Stock Holder shall :-

i. Issue the goods and raise a GI voucher against the


STO/reservation indicating the quantity of material issued, location
from which it was taken and the CPF number of person receiving the
goods from main warehouse. An automatic intimation shall be sent to
the indentor and identified receiver through the system.
ii. Take three printouts of the GI voucher, sign them and take the
signature of the person receiving the goods on the GI voucher
iii. Hand over the indentor's copy and gate pass of the GI to the indentor
or his representative
iv. File the Stock-Holder copy of the GI voucher for reference.
c. While light goods shall be immediately issued to the person bringing the
indent, the heavy goods shall be sent through the logistics team(in case
of transfer to site) or C&F(in case of transfer to another main warehouse).
The In-charge Warehouse and user representative shall co-ordinate with
logistics/C&F for such deliveries. When the material is to be delivered by
logistics team/C&F, the transporter(truck driver/ship captain) shall take
a copy of the GI voucher with him and bring it back to the Logistics/C&F
section with signature and CPF number of the indentor in token of receipt
of materials. Transportation of material in case of offshore is handled by
Offshore Logistics and the same process of providing acknowledgement
to stock holder upon dispatch and receiving acknowledgement from user
group upon delivery should be followed.

d. The logistics/C&F team shall update the Goods Issue voucher with the
details of goods receiver upon receipt of a signed copy of GI voucher from
the transporter.

e. For security purposes, copy of GI voucher shall be shown to the


Watchman at the gate, who shall sign or stamp it in token of having
checked the goods.

38.4.3 Packing of material

a. When the materials are required to be dispatched to out station, these


are to be properly checked and packed in the presence of two
responsible officials, one from Stock Holding Section and the from
Clearing & Forwarding Section/Logistics section.

390
b. For each packing case, independent packing list is to be prepared in
triplicate. One copy will be kept in the case; second will be sent to the
consignee along with the Issue Voucher and Railway receipt and the 3rd
copy to be retained by the Stock Holder.

c. Packing Section: In-charge Warehouse can decide to setup a separate


packing section (if required), else the same can be taken care by Clearing
and Forwarding Section and Logistics Sections

d. Packing of Materials

i. Before packing is commenced, it should be confirmed that quantities


and nomenclature on the Issue Voucher tally with the materials.

ii. In packing bay sufficient stock of packing materials such as straw,


wood, cotton waste, paper, water proof paper, cartons etc. will always
be maintained.

iii. The packer should pay particular attention while packing the items of
fragile nature. The material should be so packed that the material in the
packages, while in transit, do not move or rattle. Packing should be of
suitable quality to ensure that it withstands rigors of transit and storage.

iv. Suitable packing boxes, crates and cartons will be used according to
the nature and quantity of the materials to be packed.

v. One copy of the packing slip showing the contents of the particular box
should be put inside the box.

vi. The box is to be sealed after packing. Name of the consignee, name
of the consignor, Station of Destination, Net weight / Gross weight and
nature of materials especially when it contains items of fragile nature,
will be written on the packages before despatch.

vii. When packages are despatched by Rail, the same must be consigned
to the Railway Station nearest to the consignee and under no
circumstances, the postal address will be indicated on the packages.

viii. When the packages are despatched by post, full postal address of
the consignee is to be written on the parcel.

ix. Stock Holder will check all packages for standard of work and correct
markings.

x. The packages will then be handed over to the Clearing and


Forwarding or logistics Section for onward despatch.

xi. The Clearing and Forwarding/Logistics Section will also check the
address and the markings on the packages.

391
38.4.4 Booking of consumption for stores and spares issued against
reservation or STO-sales route

a. The items of Stores and Spares when issued against reservation or STO-
sales route(where the cost centre is specified in the STO) from the main
warehouse, will be finally charged off from the Books. The User
Department will, however, maintain in ICE system the inventories of such
stores & spares items in their possession which may be fit for repeated
use over a long period of time and will be responsible for their safe custody
and accounting until they are written off due to normal wear & tear or any
circumstances like loan to other departments or projects, loss etc. These
records will be subject to Stock Verification to ensure that these are
always complete and up-to-date.

b. In case of insurance spares, the reservation will be made by the indentors


against a special movement type in the ICE system with the capital asset
number after obtaining the same from the asset accounting cell.

38.4.5 Issue of Capital items

a. Capital items, as soon as received, will be issued to concerned Indentor.


In case these are not indented within a month, the matter will be brought
to the notice of concerned Key Executive for suitable directives to
concerned Indenting Department and such items may be issued to other
departments.

b. The Capital items will be issued only after necessary asset number has
been generated for the item by the Finance Depts. The user shall get this
asset number generated and inform the same to stock holder for the issue
of capital items. Once issued against demand(s) of authorised indentor(s),
the capital items will be finally be struck off from CIOS and further
responsibility for their accounting will lie with the Accounts Department
and responsibility for distribution / safe custody etc. will lie with Indentor
/ User Depts., as the case may be, until the item(s)are condemned and
declared fit for disposal. Details of capital items with indentors will be
maintained in ICE system.

38.4.6 Issue of material on loan to other organizations

a. Material will be issued for loan to other organization on receipt of proper


indent in the system.

b. The stock holder will issue the material against the request in the ICE
system and the item will be charged off from inventory.

38.5 Receipt of material at site (MAS) and booking of consumption

38.5.1 Introduction

392
a. The Site will stock materials to assist regular operations but they are not
supposed to stock materials for a long duration. Indentors / users have to
keep optimum level of Inventory at site. “MAS” should be based on past
consumption patterns only and should not exceed more than three months
requirement. This should be monitored in system on weekly basis. User
department shall generate STO for stores formation from time to time to
meet their needs.

b. The Site materials will remain under the direct control of the Officer In
charge of the Operations at the site and he will be responsible for proper
consumption of material.

38.5.2 Preparation of GR at site

a. The site store keeper/user will receive the material at site and counter sign
the indent copy(also mentioning his name and CPF number clearly)
available with the logistics personnel delivering the material

b. The receiver of the goods at site will ensure the raising of GR in the ICE
system. In case of partial delivery, the user should raise GR for the items
received. There can be issues of non-receipt, damage during transit or
short receipt of material which can be handled through transaction codes
available in system SAP-project ICE & the power available in BDP.

c. If the GR is not raised at site till 7 days from issue, automatic email
reminder from the ICE system will be sent to the user/indentor asking to
raise the GR.

d. If the GR is still not raised till 10 days from issue, another email reminder
from the ICE system will be sent to the user with a copy marked to
concerned In-charge.

e. If material is shown in transit for 15 days, GR will be automatically raised


and material will be assumed to be received at site against the indentor
identified in the original request as the receiver. However in case there is
discrepancy between the quantity actually received at site and system
generated GR raised, concerned user will delete the system generated
GR and raise another GR for the actual quantity received at site.

38.5.3 Issue of material from site and booking of consumption

a. The user group will raise a Goods Issue voucher in the ICE system against
the items being taken from site store for consumption. These items will
then be charged off from the Stores and Accounts books. On-line
consumption booking of materials should be done on daily basis
immediately after the material is consumed.

b. Drill Pipes and Drill Collars are to be booked to cost center of the rig upon
first usage and are to be taken back at zero value in the system for tracking
purpose.

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38.6 Return and condemnation

38.6.1 Return of unused material to main warehouse

a. Whenever any material lying at site is surplus to the requirement of


users, it should be returned through Stock Transport Order to the Main
warehouse.

b. The user will provide a physical copy of Goods Issue voucher along with
quality certificate of the unused material at a level not below E4 for material
other than chemical & cement and by a chemist not below E4 for chemical
& cement and the expiry date of chemicals/ cement should not be less
than six months from the date of return to main store to the logistics team
and obtain the signature of the transporter on a copy of voucher to be kept
with user for records.

c. Once the material reaches the main warehouse, the Stock Holder will take
the material on charge and countersign the Goods Issue copy available
with logistics team/indentor. These would be stored back as per existing
norms and GRV raised in the ICE system.

38.6.2 Initiation of Disposal action

a. Scrap generated and materials which become unserviceable during the


process of operations should be promptly identified and disposal action
initiated on the same. A policy on the subject has been issued in separate
chapter on Disposal.

38.7 Implementation of Radio Frequency Identification device(RFID)

38.7.1 Generation of RFID codes and applying them on items

a. The purchase section at the time of placement of order shall send the
details of RFID tags to the vendor along with the PO.
b. The vendor shall be responsible for applying RFID tags on the material
before dispatching of same. In case, the vendor is not equipped for the
application of RFID tags, the same can be done through a third party, after
informing the purchase section of the details of such third party.
c. If the material is designated for inspection at vendor’s premises, then the
QA/TPI team shall check proper application of RFID tags on the material
d. The vendor shall scan the RFID tag at the time of dispatch.
e. In case the vendor does not apply the RFID tags despite the same being
agreed upon at time of order placement, the same will be done at receipt
section and purchase section informed to settle the matter with the vendor.
An alternate facility shall be made available at receipt section for such
cases.

38.7.2 Use of RFID tags and scanners

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a. RFID scanners shall be used by Receipt section, Stock holders and users
at site for creating GR, GI and booking of consumption in system
b. Casing pipes will be issued and consumed at actual length using this
system.
c. Scanners shall be used by Stock verification team as well for verification
purposes.

38.7.3 Disposal of RFID tags

a. Special attention will be required at time of disposal of items with RFID


tags attached
b. The salvage section can decide one of the following as per their
assessment and feasibility:
i. dispose the items as is, with RFID tags installed. In such a case,
the bidders will be informed beforehand and they will need to
make appropriate arrangements for final disposal of RFID tags as
per government regulations.
ii. remove RFID tag and dispose it separately. For such a case,
central rate contract will be entered into for disposal of these
items.

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39 Stock Verification

39.1 Introduction

a. Annual physical verification of inventory and capital items is a mandatory


requirement and must be carried out as per statutory provisions

b. The stock verification team will be a multi-disciplinary team constituted by


concerned key executive consisting of members from MM and officers
from various technical discipline (like, officers of mechanical / electrical /
electronic / Instrumentation disciplines for equipments of mechanical /
electrical / electronic / instrumentation nature, officer from HR discipline
for furniture/fixture/misc. items and officers from Logistics / Automobile
discipline for vehicles) of minimum E1 level.

c. The annual stock verification programme for various work centers for fixed
Assets, Stores & Spares shall be approved by Head of Stock Verification
at Head Quarter/ I/C MM at locations.

39.2 Verification of stores, spares and capital items on stock (CIOS)

a. In the first week of April every year, the flag in ICE system will be updated
against material codes to determine the frequency of verification:

Class A – To be verified in the current year

i. Capital items on Stock


ii. Stores or Spares with Stock Value Rs. 4,00,000 and above
iii. Stores or Spares with last year consumption Rs. 50,00,000 and above

Class B – To be verified every two years (B1 & B2 each year respectively)

Stores or Spares with stock value Rs. 1,00,000and above but < Rs. 4,00,000
Class B is further subdivide into B1 and B2 based on the material group
mapped in ICE system.

Class C – To be verified every three years (C1, C2 & C3 each year


respectively)

Stores or Spares with last year consumption < Rs. 1,00,000


Class C has been further subdivided into C1, C2 & C3 based on material group
mapped in the system.
b. The stock verification team will carry out verification of the items identified
as A in the first year both at main warehouse and at site and raise
discrepancies in the ICE system, if any. The items identified as B and C

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will be verified by SV team at main warehouse and self verified by user
group at site.

d. The discrepancy reports will be marked to In-charge MM, concerned Key


Executive and Finance.

e. Concerned section will be provided a period of 30 days to adjust the


discrepancies through making available the discrepant items or to post
stock adjustment entry and initiate the procedure for write off, as the case
may be, after approval from Competent authority.

f. If the discrepancies are not addressed in a period of 30 days, the same


will be brought to notice of concerned Key Executive and Chief MM.

g. Upon resolution of discrepancy, the same would be closed in the ICE


system and information sent to stock verification team and Finance team.

h. In case, a stock holder is being transferred out of his role, all material under
his custody must be verified and any discrepancies resolved, before the
stock holder moves out of the role. The reporting manager should ensure
the above activity has been carried out and then transfer the material in
the name of new appointed stock holder. In case discrepancy is not settled
before transfer/retirement, reporting manager and key executive shall
takeover and resolve the discrepancy but the discrepancy should not be
left to the new person replacing the existing one. This will ensure that the
new stock holder receives correct material on charge and any discrepancy
arising thereafter shall be his responsibility.

39.3 Verification of assets

a. All the indenters as well as respective Asset Accounting Sections have to


periodically review and update the Asset Master for identification and
correcting the description/location to maintain correct records of assets in
the system and enable efficient and accurate verification of all assets.

b. Asset verification will take place as specified in the Asset accounting


chapter under the Finance Manual. The guidelines also include category
of items covered under Self Verification by indenter.

c. Stock verification team will raise discrepancy report(if any) and the same
will be brought to the attention of concerned sectional head and Finance
division for settlement. Settlement shall be taken care between the user
group and Asset Accounting Cell.

d. The work centre is provided a time period of 30 days for settlement of


discrepancy/initiation of write-off and upon expiry of this period, the stock
verification team shall bring any outstanding discrepancies to the notice of
the concerned Key Executive and Director concerned.

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e. Upon settlement of discrepancy or write off being approved, the same will
be updated in the ICE system for closing the discrepancy.

f. The maintenance and safe keeping of an asset shall be the responsibility


of the capital indentor and custodian as identified in the ICE system.

g. In case, a custodian is being transferred out of his role, all assets under
his custody must be verified and any discrepancies resolved, before the
custodian moves out of the role. The indentor for the asset should ensure
the above activity has been carried out and then transfer the asset in the
name of new appointed custodian. In case discrepancy is not settled
before transfer/retirement, indentor for asset and key executive shall
takeover and resolve the discrepancy but the discrepancy should not be
left to the new person replacing the existing one.

h. In case, an indentor is being transferred out of his role, all assets under
his name must be verified and any discrepancies resolved, before the
indentor moves out of the role. The reporting manager of the indentor and
Finance division should ensure the above activity has been carried out
and then transfer the asset in the name of new appointed indentor before
relieving the original indentor from his role. Indentor under
transfer/superannuation needs to obtain NOC from concerned Asset
Accounting Cell. Asset Accounting Cell will ensure the transfer of
ownership of fixed assets in the above cases. In case discrepancy is not
settled before transfer/retirement, reporting manager and key executive
shall takeover and resolve the discrepancy but the discrepancy should not
be left to the new person replacing the existing one.

39.4 Procedure for write off

a. The proposal for Write-off of discrepant fixed assets (untraceable)/


discrepant stores & spares/losses should be initiated by indentor/user/
stock holder as applicable and submitted to the Competent authority as
per BDP through a committee comprising of members from MM, F&A and
concerned Indenting/user section at E-5 level. The write off action should
be completed within a period of three months from the date of notice. The
proposal for Write-off must contain the following information:-

i. Date of notice and details of the discrepancies/losses.

ii. Nature(discrepant fixed assets(untraceable)/discrepant stores &


spares/losses) and amount of discrepancies/losses. Amount in
case of fixed assets will be gross block and net block and in case
of stores & spares will be face value.

iii. Details of the circumstances .e.g. loss due to theft/fire/ wilful


negligence/untraceable (Stock Verification process) and the
manner in which it came to light.

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iv. Copy of the enquiry report and result of the action, against the
officials if found responsible, in case of loss due to theft/wilful
negligence, as per CDA regulation rule 3 J sub rule 3 of schedule II
of ONGC’s CDA regulation 1994.

v. Whether persons other than the Corporation’s officials are involved,


copy of policy enquiry report and the findings of the Court of law if
the persons have been prosecuted, should be forwarded

b. After approval of the competent authority on the proposal for Write-off of


discrepancy/losses, the necessary regularizing transaction in ICE system
will be done by the associated Asset Accounting Section/user in
association with concerned MM formation and concerned indenter. A
formal write-off order(identical to a normal sanction order)will be issued by
the concerned indenting section, which will form the basis of transactions
in SAP by the associate asset accounting section/user.

Note : If the required level of committee member is not posted/ not in


station (on leave/tour) at a work centre then the member will be of the next
lower level available and /or as nominated by the concerned key
executive.

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40 Disposal Management

40.1 Introduction

40.1.1 For a proper control on inventory, it is essential that an effective system to


identify all assets and materials which have ceased to be useful to the
organisation, shall operate continuously, so that immediate follow up action is
possible for their timely discarding and disposal. Disposal activities need to be
given special emphasis and needs to be monitored regularly at each work
centre in VCB.

40.1.2 The assets and materials which require to be discarded may be broadly
classified as under:

a. Regular disposal items such as empty barrels, burnt oil ,casing pipe thread
protectors and all types of scrap like wooden, auto, electrical, tyres and
tubes, batteries, electrical wires and cables glass leather, canes, wire
ropes etc. which have got specific life period

b. Unserviceable stores and spares

c. Capital items which are unserviceable or beyond economic repairs.

d. Vehicles.

e. Serviceable, obsolete, unwanted and Surplus stores and spares and


capital items.

40.1.3 Like any other large undertaking the ONGC also has a considerable quantity of
stores and spares, equipment, plant and machinery, furniture etc. While every
effort is made to prolong their life, they do become unserviceable after a long use
and their further retention becomes uneconomical. In addition, changes occur
constantly in design and specifications of equipment, their components and
materials in the scenario of a fast moving technology thereby rendering the items
at time as obsolete. In the day to day activity also, considerable quantities of
scraps are accumulated for which there are no further use. Prompt and proper
disposal of such material is essential and the following paragraphs are intended
to serve as guidelines in the various activities involved in the disposal of such
materials.

40.1.4 Under MM formation of each work centre (or, each location, where disposal
activity is carried out commonly for multiple Assets/Basins etc.), there would be
a Salvage section, whose main objective would be:

a. to ensure that all scrap, metals, waste, surplus stores and equipments are
properly located, handled and disposed of at the earliest.

40.1.5 All Financial powers for related to disposal function will be followed as per BDP.

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40.2 Initiation of disposal, condemnation and transfer to salvage yard

40.2.1 Standing Condemnation and disposal board- The standing


condemnation and disposal board will be formed at each work centre
constituted by concerned key executive consisting of one officer each
from the concerned user section returning the materials, representative
from MM, Finance representative and officers from various technical
discipline (like, officers of mechanical / electrical / electronic /
Instrumentation disciplines for equipments of mechanical / electrical /
electronics / instrumentation nature, officer from HR discipline for
furniture/fixture/misc. items and officers from Logistics / Automobile
discipline for vehicles). The officers will be at least E-5 level. The most
senior member of the board will be appointed as the Co-ordinator by
concerned Key Executive.

Following process shall be followed for condemnation and declaring


the items fit for disposal:

a. Items categorized under Section 40.1.2(a) shall be directly sent for


disposal by the user department on the basis of certificate by an authorised
officer not below E-5 level for the disposal of the items declaring such
items as condemned. No approval of competent authority shall be required
for condemnation and declaring fit for disposal.

b. For disposal of items categorized under Section 40.1.2(b), (c) and (d), the
user department will raise a request to In-charge of Standing
Condemnation and disposal board for directing the requisite members for
taking action for condemnation of items. Approval of competent authority
as per BDP shall be required for condemnation and declaring fit for
disposal.

c. For disposal of items covered under Section 40.1.2 (e), List of non-moving
items shall be prepared by Stock Section. The list so prepared will be
submitted to standing survey board. The Standing Survey Board will be
responsible to physically examine and see the materials and then
recommend as to whether or not the materials can be utilised. Approval of
competent authority as per BDP shall be required for condemnation and
declaring fit for disposal.

Note (a): If the required level of Standing Condemnation and disposal


board member is not posted/ not in station (on leave/tour) at a work centre
then the member will be of the next lower level available and /or as
nominated by the concerned key executive.

Note (b): In case at one work centre number of key executive is more than
one, then key executive who is senior in the organization shall have the
power to constitute the board.

d. The concerned representative/technical member of the standing


condemnation and disposal board will coordinate with their respective

401
sections/groups regarding identification/technical approval of items to be
proposed fit for condemnation, prior to their survey by Standing
Condemnation and disposal board. The indenting/user group should utilize
the following reports for identification of items fit for
condemnation/disposal:

i. Obsolete equipment reports

ii. Technical Audit Report

iii. Approved Life Norms

iv. Inventory reports

e. The board will meet at least once a month and will recommend suitable
action on all the pending cases such as alternate use, declare the items
as unserviceable/beyond economic repair/condemned and fit for disposal,
fixation of reserve price etc. Board in charge can request for a meeting,
whenever required, in case urgent attention of the board is required for
initiating disposal. The item(s) proposed for condemnation should be kept
at a proper location, so that the Standing Condemnation and disposal
board can easily identify and examine each item.

f. The Standing condemnation and disposal board while condemning items,


will recommend if items such as old used rubber, used linen, mattresses,
pillows, unserviceable tube lights/bulbs should be disposed of as scrap or
should be destroyed following proper procedure, due to their holding being
uneconomical.

g. The Standing Condemnation and disposal board will recommend whether


the items being disposed should be sold on per metric ton basis or on lot
basis. Scrap shall be disposed on per MT basis as per guidelines as it help
in better control.

h. For items consisting of composite materials (such as shock pads, which


consist of high value steel besides rubber), the Standing Condemnation
and disposal board should assess the approximate metal content in each
lot and specify the same in the nomenclature of the lot, so that the
contractors quote true value for such lots.

i. The disposal of all immovable properties no longer required for use (such
as demolition of old structures and buildings etc) is beyond the scope of
above mentioned Standing Condemnation and disposal board and will be
handled by the respective sections themselves without referring the same
to MM formations/disposal sections.

40.2.2 Various powers in respect of disposal will be exercised with reference to


the book value or assessed value when book value is not available.

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40.2.2.1Following methodology shall be used for working out the book value:

a. For used capital items, the “Book Value” would be the depreciated value
of the items. Wherever the depreciated value of the items/equipment is
not available, the Board of officers, as indicated above, will assess the
book value.

b. The value estimated by the board of officers for such items would be
considered as the “book value” of the item/equipment.

c. For items which are new and which have never been put to use, the book
value will be as maintained by the Accounts in the priced ledger.

d. The book value assessed by the Survey Board could be different from
the reserve price

40.2.3 For items where book value is not available, the same would be assessed
by a board of following officers at minimum E-3 level after taking into
consideration the prevailing market rate, if any, and the condition of the
items:

(i) A Technical officer from concerned discipline.


(ii) An officer of the section returning the items.
(iii) An officer from MM Depts.
(iv) An officer from Finance & Accounts Depts.

40.2.4 Condemnation of Stores and spares which are unserviceable or


beyond economic repairs

a. Items categorised under 40.1.2 (b) will be sent to disposal directly if they
have been declared as beyond economical repair or unserviceable by the
standing condemnation and disposal board as stated in Para 40.2.1. No
specific approval of concerned key executive will be required in such
cases. The material will be transferred to disposal location under scrap
material code in ICE system, subsequent to recommendations of Standing
Condemnation and disposal board.

b. User department or Stock holders can also bring to the notice of Standing
Condemnation and disposal board items such as Rubber, PVC and other
dispensable and perishable items which lose their shelf life/deteriorate due
to long storage. Such items will also be sent to disposal directly upon
recommendation from Standing Condemnation and disposal board.

40.2.5 Condemnation of capital items which are unserviceable or beyond


economic repairs

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a. Items categorised under 40.1.2 (c) will be disposed of if they have been
declared as beyond economical repair or unserviceable by the standing
condemnation and disposal board as stated in Para 40.2.1.

b. For capital items, concerned User deptt shall get the Census numbers and
Book Value verified from Asset Master / Asset Accounting cell, before
putting up the items for condemnation. Standing condemnation and
disposal board shall verify the Census number of the capital items put up
for condemnation.

c. Condemnation of Capital items received as a part of Turnkey projects (or)


as a sub-assembly to a major capital item

i. In respect of each of such items, the concerned user section shall certify
that the item has been received as part of Turnkey Projects (or) as a
sub-assembly to a major capital item.

ii. Broad technical specifications of each of such items shall be recorded


by the user department, which shall also form part of the condemnation
report.

iii. For each such item, the concerned indenting/user section shall also
indicate the census number of the respective Project / major capital item.

iv. Assessed Value for each such item shall be determined by the board as
per para 40.2.3.

v. For condemnation of such items, the recommendations of the Standing


Condemnation and disposal board (including Assessed Value of the
items) shall be got approved by competent authority as per BDP.

vi. After condemnation and physical handing over of such items to Salvage
section, In-charge of concerned indenting/user section (or, his
representative) shall co-ordinate with the Asset Accounting cell for
necessary regularizing work related to accounting.

d. The Survey Reports would include the following information in addition to


the description and Code number of item:-

i. Manufacturer’s part number.

ii. Census number.

iii. Source of receipt.

iv. Date of purchase.

v. Book Value/Assessed value(in case of sub-assets)

vi. No. of years equipment has been in actual use.

404
vii. Repair history.

viii. Reasons for return.

ix. Present condition.

x. Details of the parts (if any) that should be retrieved before capital item
is disposed of.

e. The Board will give a certificate that the capital item under survey has
become unserviceable and beyond economical repair and that this is due
to fair wear and tear. If the Board is of the opinion that the equipment or
item has become unserviceable or beyond economic repair due to misuse,
no disposal action will be taken until the matter has been investigated and
responsibility fixed for the misuse. Further disposal will only be taken after
the written order to this effect has been given by the Competent Authority.

40.2.6 Condemnation of Vehicles & Transport equipments

a. Procedure for condemnation covered under replacement policy: User


group shall identify the vehicles for condemnation as per condemnation
policy. The required data will be filled in part “A” and part “B” of the
condemnation proforma placed at Annexure “C”. These documents shall
thereafter be submitted to attached Finance for examination/concurrence
of the proposal and verification of depreciated cost before putting up to the
Standing condemnation and disposal board to be constituted as per
guidelines given in Para 40.2.1. The Board shall, wherever feasible,
physically inspect individual vehicle/transport equipment and record its
recommendations under Part “C” of Annexure “C”. The Board will ensure
that all the necessary information/data are filled in before any case is put
up for approval to the Competent Authority.

b. Procedure for condemnation of accidental / pre-mature cases


Whenever an accident takes place, the concerned key executive should
immediately appoint an Enquiry Board. This Board must give its
recommendations within 60 days. Simultaneously the accidental vehicle
should be sent to workshop for repairs. If it is found that it is beyond
economical repair, then the necessary data should be filled in part “A” and
part “B” of the condemnation proforma and should be put up to the
Standing Condemnation and disposal board after concurrence by attached
Finance. However, the condemnation process should be de-linked from
the follow up actions of the enquiry report.

Vehicles which have become obsolete because of non-availability of


spares, exorbitant cost of repairs and uneconomical operational cost, shall
be identified by the User Department and put to the Standing
Condemnation and disposal board. The Board while recommending the
case for condemnation should ensure that all the necessary
data/information is complete.

405
c. The approved life of Transport vehicles/equipment is as under

No. of years Kms/Hrs. Run


Sl.No. Category
(Whichever is earlier)
1. Jeep (Petrol) 7 1,20,000 Kms
2. Jeep (Diesel) 7 1,60,000 Kms
3. Cars 10 1,30,000 Kms
4. Ambulance (Petrol) 7 1,20,000 Kms
(on Jeep chassis)
5. Ambulance (Diesel) 7 1,60,000 Kms
(on Jeep chassis)
6. Pickup (Petrol) 7 1,20,000 Kms
7. Pickup (Diesel) 7 1,60,000 Kms
8. Mini Bus (Diesel) 7 1,60,000 Kms
9. Power Wagon (Diesel) 7 1,00,000 Kms
10. Station Wagon (Diesel) 7 1,20,000 Kms
11. Ambulance Van (Diesel) 7 1,60,000 Kms
12. Cash Vans (Diesel) 7 1,60,000 Kms
13. Buses 7 3,20,000 Kms
14. Pole Carriers 8 3,20,000 Kms
15. Trucks 8 3,20,000 Kms
16. Water Tankers/Oil Tankers (12 Ton) 8 3,20,000 Kms
17. Prime Movers/Trailer (40/45 T) 10 3,20,000 Kms
18. Prime Movers/Trailer (25/30 T) 10 3,20,000 Kms
19. Prime Movers/Trailer (15/20 T) 10 3,20,000 Kms
20. Dumper 10 3,20,000 Kms
21. Crawler Tractors 10 12,000 Hrs.
22. Bull Dozers 10 12,000 Hrs.
23. Auto Graders 10 12,000 Hrs.
24. Mobile Cranes (Upto 7 T) 10 10,000 Hrs.
25. Mobile Cranes (Upto 16 T) 10 10,000 Hrs.
26. Mobile Cranes (Upto 30 T) 10 10,000 Hrs.
27. Mobile Cranes (35 to 40 T) 10 10,000 Hrs.
28. Mobile Cranes (Above 40 T) 10 10,000 Hrs.
29. Crawler Cranes (Upto 30 T) 10 10,000 Hrs.
30. Crawler Cranes (Upto 10 T and above) 10 10,000 Hrs.
31. Pneumatic Tractor 10 10,000 Hrs.
32. Road Roller 10 10,000 Hrs.
33. Trailers 10 -

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34. Truck (upto 12 T) 8 3,20,000 Kms.
35. Water Tankers (upto 12 T) 8 3,20,000 Kms.
36. Rig Chassis 8 10,000 Hrs.
37. Labour/Normal Van (on TATA chassis) 8 3,20,000 Kms.
38. Forklifters 10 10,000 Hrs.
39. Oil Field Trucks 10 3,20,000 Kms.
40. Motor Cycle 7 80,000 Kms.
41. Fire Tenders 8 3,20,000 Kms.
(Whichever is earlier)

d. User Department should properly maintain the log books and History
Sheets with respect to daily Kms./Hrs. run for each vehicle/equipment so
that condemnation performance is complete in all respects

e. Transfer of vehicles/ equipments at the time of transfer of


vehicle/equipment, all the relevant documents/data concerning the
vehicle/equipment should also be despatched by the transferor. The
transferee Department should ensure receipt of these documents.

f. Cannibalisation of spare parts: No cannibalisation of spare parts should


be done from the vehicles due for condemnation. For cases where
cannibalisation is un-avoidable due to valid reasons, this should be
allowed under specific written orders of the officer-in-charge of the work
shop. A copy of the permission and list of items removed should be
enclosed along with the condemnation proposal.

40.2.7 Condemnation of serviceable, Obsolete, Unwanted and unused


Surplus Capital Items, Stores and Spare

a. Surplus and obsolete stocks are usually created by changes in designs


and methods of manufacture, changes in the drilling and projection
policies, unforeseen reduction in their requirement or a wrong decision by
some part of the management. These dormant stocks must be put to some
alternative use or disposed of promptly to enable optimum use of capital
and storage space. The user group should regularly identify such items
and declare them as surplus.

b. The user will first take approval from concerned key executive for declaring
item as surplus at work centre level. After the approval, the material will be
transferred to surplus location by the stock holder in ICE system using T
code MB1B. This list will then be circulated across organisation through
ONGC reports.

c. If no requirement of material received from any other user group within a


period of 2 month, the user will obtain another approval from concerned
key executive for sending these items for disposal. No specific
recommendations are required from standing condemnation and disposal

407
board in this case. Such items shall remain in the stock (in ICE system) till
the decision to dispose them of is finalised. Once decision is taken to
dispose of these items, the user will then create reservation in system with
movement type 929 for Stores and Spares and in case of capital items,
ACN will be prepared. The material will then be sent to salvage yard for
disposal. The salvage yard will receive the material at 5% value(book
value) for Stores and Spares and 2% value(book value) for Capital items.

d. In addition, a separate procedure for regular action on non moving


inventory has been identified in Inventory Management Manual Section
41.

e. Items meant for disposal should be kept in isolated place and should be
identified separately.

40.2.8 Condemnation in cases where disposal not possible before getting


replacement

a. Where the entire condemned items cannot be returned before getting


replacement and the condemnation is considered necessary for
processing the proposal for purchase of replacement items, formal
condemnation should not be resorted to in the first instance.

b. In such cases assessment of the condition of the items may be made by


the Standing Condemnation and disposal board for the purpose of getting
replacement. This assessment report should form the basis for processing
proposal for replacement. After replacement of the item, the formal
condemnation may be done and the entire quantity returned to Salvage
Section along with condemnation report in duplicate.

40.2.9 Other provisions on Disposal:

a. Any capital item except Furniture and Fixture where the gross book value
of individual item is upto Rs. 25,000.00 and net book value is less than Rs.
1000.00 can be declared fit for disposal by indentor/user deptt. after
obtaining approval of competent authority without referring to Standing
Condemnation and disposal board.

b. The concerned key executive will have full powers to approve conversion
of surplus serviceable/used unwanted materials into scrap provided
ONGC is not able to dispose such usable material inspite of invitation of
tender/e-auction being conducted twice.

40.2.10 Lot formation guidelines for the salvage yard

a. Material proposed for condemnation shall be segregated in separate


lots(not required in case of rate contracts or buy back by supplier), in
accordance with the following guidelines:

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i. For used stores, spares and containers, each lot of materials proposed
for condemnation should be formed only with items of similar nature.
Each lot of similar items is to be considered as each case. For e.g. (a)
Ferrous scraps (b) Non ferrous scraps (c) Rubberised goods (d) Tent
equipments, leather goods etc. (e) Auto scraps (f) Tyres and tubes (g)
Batteries (h) empty barrels (i) Bearings (j) Drilling Bits (k) Wooden scraps
(l) Wire ropes (m) Tubulars and broad categories of lots.The quantity
contained in each such lots should be specified in terms of count,
measure or weight depending upon the nature of the material. Each lot
of scrap materials (i.e. the scrap of metal / steel and wood) should
invariably be identified in terms of weighment basis.

ii. For surplus serviceable unwanted stores, each lot will be formed with the
item(s) of same classification/specification. For surplus serviceable
unwanted spares, each lot will be formed with items of same equipment.
Each lot of material made in accordance with the above shall be
considered as ‘each case’.

iii. For the used vehicles, each lot proposed for condemnation should be
formed with vehicles of same category. Each lot of such same category
vehicles is to be considered as ‘each case’. For e.g. (a) All Jeeps (b) All
cars (c) All type of Cranes (d) All types of Trailers (e) All types of Trucks
(f) All pickup and station wagons etc. (g) All shot hold drilling rigs (h) All
Seismic and Electro logging Vans (i) All buses (j) All vehicles other than
mentioned above, for broad categories of lots.

iv. For used capital items and equipments, each lot proposed for
condemnation should be formed of identical item only. Each lot of
identical items is to be considered as ‘each case’. The lots can be as (a)
Diesel engine (b) Slush pumps (c) Rotary tables (d) Masts and derricks
(e) Swivels (f) BOPs and X-Mas trees (g) Crown Blocks (h) travelling
blocks (i) Air Compressors (j) Mud and Diesel tanks (k) Any lot of
equipment on same analogy as above lots.

b. Material for condemnation should be arranged in smaller lots, for the


convenience of handling and also for attracting better competition. It is not
a healthy practice to form bigger lots of material accumulated over a longer
period of time.

40.2.11 Returning condemned materials to salvage section

a. After approval of the recommendations of Standing Condemnation and


disposal board, the concerned indenting/user deptt. will send for disposal,
the condemned materials to the Salvage Section along with two copies of
the approved condemnation report (proceedings of Standing
Condemnation and disposal board, wherever held) along with relevant
documents such as ACN(Asset Condemnation Note), in case of Capital
items, prepared in the ICE system.

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b. For capital items, the asset number of the items returned should tally with
the asset numbers indicated in condemnation report.

c. In case of vehicles / transport equipments, after approval of the


recommendations of Standing Condemnation and disposal board by
Competent Authority, the concerned Logistics Department shall issue the
condemnation order. The condemned vehicle should be returned to
Salvage section with proper documentation including non-use certificate
from the concerned Road Transport Authorities, besides copies of
approved condemnation report and ACN(Asset Condemnation Note)
prepared in the ICE system. Wherever necessary, the renewal of non-use
certificate should be obtained from the Road Transport Authority by the
Transport Department.

d. On physical transfer of Capital items and Vehicle along with necessary


documents as mentioned above to the Salvage section, the concerned
indenting/user section shall send a copy of the condemnation report, duly
acknowledged by salvage section, to the concerned Asset Accounting cell.
Accordingly, the condemned materials which have been physically
received by the Salvage section should be removed from the material
master of the concerned indenter/user, with immediate effect. All
concerned sections should take necessary actions on priority, to ensure
that this process would not take more than 15 days from the date of
handing over of the condemned materials.

e. In case of items being sold on as-is-where-is basis, the condemned


materials should be removed from the Asset Master of the concerned
indenter/user by asset accounting section on the basis of a custodian
certificate by the indentor/user.

40.3 Setting of reserve price and preferred methods of disposal

40.3.1 Procedure for setting of Reserve price

(MM/26/2017 dated 21.06.2017)


For items under category 40.1.2(a), (b) and (e), A Standing condemnation
and disposal board constituted as per clause 40.2.1 shall fix the reserve
price. Reserve price will be set as follows:

i. Information for items being considered for disposal can be released


to MSTC and information sought on recent disposal price of similar
items which will then be utilized for fixation of reserve price. A
maximum period of 15 days will be provided for MSTC to respond and
if no response is received upon expiry of this period, the board can go
ahead with its estimation without further delay.

ii. The Standing condemnation and disposal board will take into
account factors like (a) Last disposal rate of similar items from MSTC
(b) any market linked index to account for changes in last disposal
price (c) condition of the materials under disposal, (d) market utility in

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the nearby areas (e) opportunity cost of storing and handling the
material for fixing the reserve price and (f) the acquisition value (gross
value). The board will try to come up with a realistic reserve price so
that the items may be disposed off in one attempt. The team will place
on record, duly endorsed by all of them, the basis on which they have
fixed the reserve price and same will be placed in sealed cover to be
submitted for approval of Competent Authority as per BDP.

b. For items under category 40.1.2(c) and 40.1.2(d), reserve price will be set
equal to higher of book value or 2% of Gross value of the item available with
the Asset accounting cell/Finance.

c. Deleted, as the same gets covered under 40.3.1 (a) above.

d. For items under category 40.1.2(a), (b) and (e), the reserve price will be
entered in the MSTC system by the Competent Authority and all relevant
papers kept with in charge MM, after approval of Competent Authority..

e. For items under category 40.1.2 (c) and (d), the reserve price will be entered
in the MSTC system by the concerned warehouse in-charge. However such
fixation of reserve price will not need any approval of concerned key
executive..

f. The estimation/setting up of reserve price as above is to simply facilitate


the booting-up of MSTC system(in case of e-auction through
MSTC)/tendering(in case of manual tendering). However the material/lots
will be sold to H-1 bidder(s) only, received against the e-auction/tender
respectively.

40.3.2 Disposal of regular disposal items such as empty barrels, burnt oil ,casing
pipe thread protectors and all types of scrap like wooden, auto, electrical,
tyres and tubes, batteries, electrical wires and cables glass leather, canes,
wire ropes etc. which have got specific life period

a. In charge MM has full power to enter into a rate contract with firm for
periodical disposal of items categorized as Sec 40.1.2(a).

b. Rate contracts or return to supplier (on terms agreed upon at time of


procurement) shall be the most preferred way of disposing such material
and efforts must be made to establish rate contracts or agreement with
suppliers for return for timely disposal of such materials.

c. In case such arrangements as identified above are not available, disposal


will take place through e-auction process as detailed in Section 40.4.4.
If e-auction process cannot be conducted due to any reason, the disposal
should be conducted through tendering, with the approval of concerned key
executive. In this respect, a decision should also be taken as to whether
such tendering to be done departmentally or through MSTC, after

411
considering which option is more feasible and convenient for quick disposal
and advantageous to the Corporation

40.3.3 Disposal of rest of the items:

a. Return to supplier(agreed upon at time of procurement) shall be the most


preferred way of disposing such items.

b. In case such arrangements as identified above are not available, disposal


will take place through e-auction process. If e-auction process cannot be
conducted due to any reason, the disposal should be conducted through
tendering, with the approval of concerned key executive. In this respect, a
decision should also be taken as to whether such tendering to be done
departmentally or through MSTC, after considering which option is more
feasible and convenient for quick disposal and advantageous to the
Corporation.

c. For disposal of items identified under 40.1.2(e), in addition to the normal


methods of disposal through tendering, auction or through MSTC (& e-
auction), efforts should also be made for disposal of material by specific
contracts / approaches with Govt. organisations / PSUs who are the
probable users of such items - such as Oil India, Defence and Irrigation
Depts. in case of drilling, production and auto(Imported) items and Indian
Universities in case of Geo-Service equipments. In case of auto
(indigenous) and engineering items, attempts may also be made to see the
surplus items are required to the manufacturers / authorised dealers /
stockists of the concerned equipment / spares.

40.3.4 Special conditions for disposal of e-waste

a. E-waste will be disposed of in accordance with e-waste(management and


handling) rules issued by the ministry of Environment and forests.

b. E-waste should be disposed through authorised collection centres, or


registered dismantler or recycler or return to the producer through its pick up or
take back services or through its collection points.

c. Central rate contracts shall be established by corporate MM, Delhi and utilized
with such authorised collection centres, or registered dismantler or recycler for
disposal of e-waste.

d. Agreement regarding return to producer shall be made at time of procurement


of such material.

e. The disposal yard will maintain records of e-waste generated as per ministry
issued rules and such records need to made available for scrutiny to State
Pollution Control Boards whenever demanded.

40.3.5 Special conditions for disposal of hazardous material

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a. The Hazardous Wastes(Management, Handling and Trans-boundary
Movement) Rules as issued by Ministry of Environment and Forest shall be
adhered to in respect of disposal of hazardous material.

b. Central rate contracts shall be established by Corporate MM, Delhi and utilized
with registered recycler or re-conditioner for disposal of hazardous materials.

c. If possible, arrangement shall be made with dealer/ manufacturer/ importer/


assembler at time of procurement for disposal of hazardous materials at the
end of its useful life.

d. The hazardous waste is required to be sold / auctioned only to units registered


by Central Pollution Control Board (CPCB).

e. Along with the tender documents the purchaser of hazardous waste are
required to submit following clearing certificates:

i) Requisite certification of registration from central pollution control board.

ii) An authorization from the pollution control board of the state where the
hazardous waste is located.

iii) “no objection “certificate from the pollution control board of the state where
the facility for treatment, storage and disposal of hazardous wastes is
located in case of transport of hazardous wastes to such facility from
another state

f. Further, the used/burnt oil will be sold only to the Re-refiners registered with the
Directorate of Industries of the State Government/Union territory
Administrations. The disposal of used / burnt oil should be carried out on “litre”
basis only.

40.4 Methods of disposal

40.4.1 Stores & spares segregated for disposal must be continuously checked to
explore the possibility of their alternative use. If they can be so used there
may be saving of the difference between price of the new materials and
scrap. Alternative use of the scrap and unserviceable stores and spares
may be found by using imagination and ingenuity. The Respective In-
charges of the departments shall visit the salvage yard where the material
for disposal is stored at least once in a month. These visits may suggest
to them the alternative use of the material awaiting disposal. These visits
will also indicate to them the sources which have created the disposable
material. This may assist in minimising the generation of salvage and
scrap/better material planning and control for future.

Once the item(s) has/have been condemned, sent to the salvage yard and
tenders for their disposal invited, these will not be withdrawn from disposal
without prior approval of the concerned Key Executive.

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40.4.2 Disposal by returning to suppliers:

a. Often scrap/metals waste or containers are in such a condition that they can
be returned to the suppliers either as an out-right sale or as a deposit on
future purchases. Non-ferrous metals such as copper or aluminium in some
instances may be returned to the suppliers in “TOLL” basis i.e. the suppliers
may accept the return of certain quantity of metal to be reprocessed into
new metal, the quantity of new metal returned by the suppliers being slightly
less because of the melting and fabricating losses. Such arrangements may
be made at the time of initial purchase.

40.4.3 Sale by contract with dealers of brokers:

a. Rate Contract to remove regular disposal items such as empty barrels, burnt
oil ,casing pipe thread protectors and all types of scrap like wooden, auto,
electrical, tyres and tubes, batteries, electrical wires and cables glass
leather, canes, wire ropes etc. which have got specific life period at periodic
intervals may be entered into. This contract could be a fixed price contract
or a varying price contract linked with the market price at the time of removal.
The contract will be finalised by calling tenders, if required.

a. Disposal of materials through open tenders

Disposal of material through open tender shall be the least preferred method
for disposal, following rate contract, return to supplier and e-auction. The
stores and spares and scrap intended to be sold by inviting open tenders will
be given wide publicity in newspapers both in English and in local language,
depending upon the nature of stores, place where they are located and the
value of items to be disposed of. Likely purchasers will also be informed
through letters. A list of likely purchasers would also be maintained. Names of
all persons to whom tender forms are issued will be entered in the Register of
“Tender for Disposal of Stores”.

b. In an invitation to tender, definite date and time will be prescribed for receipt
of tenders and their opening. All tenderers will be instructed to deliver two
copies of tenders in a sealed envelope on or before the specified closing
date and time. It will be made clear to the tenderers that tenders or
modification to tenders after closing time and date will not be considered.
The envelope must show on the outside, the Tender number and due date.
If the tenders are sent by post, these should be sent by Registered Post. No
tender form will be issued on the date fixed for opening of tenders.

c. All bids received after the notified time and date of closing of tenders
will be treated as late tenders and will not be considered. Such late
tenders, after recording with the concerned Materials Management officer,
will be returned un-opened to the concerned bidder(s) within a period of
seven days from the due date of opening of tenders.

d. Unsolicited alterations or modifications of bids received after the notified


time and date of closing of the tenders shall not be entertained

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e. Earnest Money

The tenderer will be asked to send earnest money with their offers with
reference to their quoted price in the form of Demand Draft or Bank
guarantee issued from any of the Nationalised Bank/ Scheduled Bank as
per following slabs:-

Quoted Value (Rs) Amount of EMD (Rs)


Upto Rs. 50,000.00 5% of quoted value.
Rs. 2,500/- + 2.5% of the quoted price in
Over Rs. 50,000.00
excess of Rs. 50,000.00

Offer not received with full amount of earnest money will be summarily
rejected. The earnest money of successful tenderers will be retained as
security deposit for due performance of the contract and the earnest money
of the remaining tenderers will be refunded within seven days of the issue
of the Sale Letter.
For cases dealt by MSTC, EMD shall be finalised as per the details
stipulated in the agreement between ONGC and MSTC.

f. In all ‘Invitation to Tenders’, it must be specifically stated that the goods are
sold on the “as is where is” basis and if the tender is accepted, the buyer
will remove the goods with all faults and notwithstanding any error or mis-
statement of description, measurement, quantity, weight, enumeration or
otherwise and without question on the part of the buyers, that no claim will
be made against ONGC, nor shall any allowance be made on account of
any such fault, mis-statement or error. Buyer will also be informed that he
should satisfy himself thoroughly as to what is offered for sale before
submitting his tender. He may at his own cost inspect the goods prior to
tender and shall be deemed (whether or not such inspection shall have in
fact taken place) to have had notice of all such faults, error and mis-
statement, which he might discover on inspection and shall not be entitled
for any compensation or damage on account of such defects, faults, errors
and mis-statements.

g. All tenders will be received by Tender Receiving Officer (not below E-0
level). Tenders received will be handed over to the tender opening officers
(one each from MM and F&A deptt. not below E-0 level for opening of the
same in public on specified date. Tenders received after due date and time
of the opening of tenders will be treated as late tenders.

h. A comparative statement will be prepared in which all tenders received in


time will be entered. The comparative statement will be checked and signed
by the officer of MM deptt. as per limits indicated below:-

Tender value (Rs) Officers


1 Upto7.5 lakhs MM Officer

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2 Above 7.5 lakhs to35 lakhs Sr. MM Officer
3 Above 35 lakhs to75 lakhs Dy. Manager(MM)
4 Above 75 lakhs Manager(MM)

i. All comparative statements for tender exceeding the value of Rs. 50,000/-
will be referred to Finance for scrutiny. The monetary limits of different level
of Finance and Accounts Officers for checking the comparative statements
will be as under:-

1 Upto Rs. 7.5 lakhs F&A Officer


2 Above Rs. 7.5 lakhs to Rs. 35 lakhs Sr. F&A Officer
3 Above Rs. 35 lakhs to Rs. 75 lakhs Dy. Manager(F&A)
4 Above Rs. 75 lakhs Manager(F&A)

j. Acceptance of offers

The comparative statement with detailed proposal will be submitted to the


Competent Authority referred in BDP PART III(C) Clause MD: Powers of
Discarding and Disposal. Normally the highest tender will be accepted.
However, for reasons to be recorded in writing, the Competent Authority, in
consultation with Finance, may accept a tender other than the highest. For
acceptance of offers below reserve price, BDP PART III(C) Clause MD:
Powers of Discarding and Disposal will be referred to.

k. On acceptance of the tender, a registered acknowledgement due “Sale


Letter” will be issued to the tenderer conveying acceptance of the offer and
requiring the tenderer to deposit the value of the sale within stipulated
period, along with one copy of the sale letter, duly accepted. It will be made
clear that the quantity/weight indicated is approximate and may vary at the
time of actual delivery consequent upon actual counting/ measurement/
weighing.

Detailed instructions regarding the method of deposit will be given in the


Sale Letter. Normally, the stipulated period within which sale value will be
deposited would be as under but the Competent Authority, in exceptional
circumstances, may extend the period for reasons to be recorded in writing.

Not exceeding Rs. 50,000.00 - Within 15 days of the date of issue of Sale
letter.

Exceeding Rs. 50,000.00 but upto Rs. 2,50,000.00 - Within 21 days of the
date of issue of Sale letter.

Exceeding Rs. 2,50,000.00 - Within 30 days of the date of issue of Sale


letter.

416
l. Following provisions will be made in “Sale Letter”:

Sale Value

It should be noted that failure to deposit entire sale value within stipulated
period will attract penalty @ 1% of sale value per week subject to a
maximum of 5% of sale value by the buyer. The sale letter will be treated as
cancelled and earnest money deposit forfeited in case the buyer fails to
deposit sale value within five weeks from the date specified for such a
period.

Note (Not to be incorporated in tender documents)

The Competent Authority, after imposing penalty as contemplated above,


will have discretion to release the material to defaulting party without
cancelling the Sale Letter provided such party has deposited full sale value
of the materials even after five weeks of specified date but within three
months of the specified period.

m. For reasons to be recorded in writing, the Competent Authority, in


consultation with associate Finance, will be empowered to waive recovery
of penalty imposed on the buyer for delay in depositing sale value.

n. A copy of the sale order will be endorsed to the attached Finance and the
MM officer holding the stores.

o. A copy of the sale order will also be endorsed to the finance officer in-charge
stores ledger section along with the statement of the material sold. The
statement will interalia incorporate the following particulars for condemned
capital items sold.

i) Description of capital items.

ii) Census number.

iii) Reference to condemnation report (every condemnation report must


bear a particular control number and date for easy links).

iv) Depts./Office/Officer returning the material.

v) Return voucher number and date.

417
p. The buyer will also be informed that the earnest money deposited will be
adjusted against the security deposit and default in payment of sale value
within the stipulated period would be considered as a breach of contract and
that Oil & Natural Gas Corporation may forfeit the amount of earnest money
and security deposit apart from cancelling the contract by serving notice in
writing to the buyer and resell the stores as and when the ONGC considers
best and recover from the buyer any loss incurred in such a resale. The
ONGC will also be entitled to the cost of storage/ware-housing, removal of
stores which are to be resold and any expenses incurred in the sale of the
stores. Any gain on resale will be retained by the ONGC.

q. Delivery order

i) After the buyer has deposited the sale value, a “Delivery Order”
authorising the buyer to take delivery of stores sold will be issued
as per specimen at Annexure ‘B’. The ‘Delivery Order’ would also
give the reference of the “Sale Letter” and “Sale Deposit Receipt”.
The Delivery Order would also lay down a period within which the
stores are to be removed. This period would be worked out keeping
in view the quantity, weight, bulkiness of the stores sold and other
relevant circumstances such as availability of transport, etc. It must
be clarified in Delivery Order that if the stores are not removed
within the stipulated time, ground rent @ ½% of the sale value per
week subject to a maximum of 5% of sale value will be charged.
Thereafter the “Sale Letter” and “Delivery Order” will be treated as
cancelled and security deposit of the buyer forfeited.

ii) The Competent authority, after imposing ground rent as


contemplated above, will have discretion to release the material to
defaulting party without cancelling the Sale Letter.

iii) For reasons to be recorded in writing, the Competent Authority, in


consultation with associate Finance, will have powers to waive levy
of ground rent.

iv) Any deposit of the unsuccessful tenderers will be returned within


one week of the sale of tendered material/stores. It will not be
necessary to inform tenderers the reason why their tenders have
not been accepted. No correspondence shall be entertained in this
regard.

v) Copies of the Delivery Order will be endorsed to the MM Officer


holding stores, concerned Finance & Accounts User department
and concerned Security Officer. The MM officer will issue the Items
from Disposal yard sold to the buyer in the presence of security
personnel and post in the ICE system on the strength of the
Delivery Order signed by the contractor in token of having removed
the items.

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40.4.4 E-Auction Process (currently being conducted through MSTC)

For e-auction for disposal of materials currently being conducted through


MSTC, the following provisions will be applicable, which are in line with the
process followed by MSTC:

a. E-Auction Documentation:

Lists of different lots for disposal, along with details of all items,
specifications and terms, will be sent by ONGC to MSTC preferably by E-
Mail (followed by hardcopies) for faster preparation of E-Auction Catalogue
and posting the ‘lot details’ by MSTC on the E-Auction Website. Applicable
taxes and duties to be borne by the respective bidders including the
applicability of acceptance of C-form by ONGC, issued by prospective
bidders , in case of inter -state transactions, will be mentioned in the E-
auction catalogue as per applicability at the respective work centres. These
applicable taxes and duties at the respective work centres need to be
informed by the concerned In-charge Warehouse/disposal to MSTC, along
with details of items for suitably incorporating by MSTC in the respective e-
auction catalogues for better information of prospective bidders for their
clarity.
b. E-Auction Bidding Process:

i) EMD: The EMD shall be as decided by the Standing Condemnation


and Disposal board.

ii) Reserve Price: It is required to enter the ‘Reserve Price’ values of


each lot in the system, through password security system, at least
two working days prior to the commencement date of e-auction
bidding. The system will retain the Reserve Price for comparing the
bids internally during Live auction, but it will not be displayed or
accessed by anyone. Upon closing of E-Auction, the system will
readily ascertain whether H1 bid is equal to or above the RP value
and confirm sale order against the particular bid and post it
automatically.

iii) Lower limit for acceptance of H-1 bid, below reserve price: It is
also required to feed a lower limit in the system (which is 50%), for
acceptance of H-1 bid (below reserve price) on ‘Subject to
Approval’ (STA) basis with concurrence of finance, in the event of
not receiving any bid value more than the reserve price. However,
the bids below the said lower limit will be rejected. Upon closing of
the E-Auction, the bids crossing the specified lower limit will be
registered as ‘bids on STA basis’ in the system. These bids will be
blocked for a limited specified period, before expiry of which sale
order is to be confirmed on highest bid.

iv) All bids will be deemed to be for materials on ‘As is where is’ basis
and subject to prior inspection by the bidders.

419
v) Once the bidding starts, the H-1 bid at any point of time will always
be displayed on the screen, without showing the name of the H-1
bidder.

vi) Any time during e-auction, the bidders as well as the dealing
officials of ONGC can see the bid history of the last 10 bids.

vii) Immediately after closing of e-auction, the bidders can see the
result online on the website, which will show details of lots won by
them on ‘confirmed’ or ‘STA’ basis.

c. Duration Of E-Bidding:

‘e-bidding’ will be held initially for four hours, with a provision for auto
extension of closing time by 8 minutes every time the last H-1 bid is received
within 8 minutes of the predetermined or extended Closing Time. This
process will continue till the last H-1 bid remains unimproved for a minimum
period of 8 (eight) minutes.

d. Monitoring/Witnessing Of E-Auction, By ONGC :

The dealing officer shall witness & monitor the ‘live e-auction process’. He
shall also download ‘bid history’ of last 10 bids for all lots and the ‘complete
Bid Sheets’ (with names of the H-1 bidders and the status as to whether
Sold/STA/Rejected etc.) from the website, on completion of the ‘live e-
auction process’.

e. Issue of sale order, delivery order, delivery, etc.

i) For the cases where H-1 bids are equal to or more than the reserve
price, ‘Sale Intimation Letter’ will be generated automatically in the
system and will be issued by MSTC to the H-1 bidders for each lot,
requesting to deposit 10% Security Deposit, within 7(seven) days.
No approvals are required by MSTC from ONGC in such cases.
ii) In cases where H-1 bid is less than the reserve price, MSTC should
issue the ‘Sale Intimation Letter’, only after approval by the
Competent Authority of ONGC (as per BDP). In case the H1 bid is
within 15% of the Reserve price, no specific approval/financial
concurrence will be required from the Competent Authority and
STA approval will be fed in the MSTC website straight away.
Concerned officials will make all efforts to convey the online
confirmation of the approval to MSTC at the earliest, the time for
which should not exceed more than 7 (seven) working days.
iii) Immediately on receipt of the copy of Sale Order/Delivery Order
issued by MSTC, concerned dealing officer shall generate a
confirmatory Sale Order/Delivery Order in the ICE system for the
purpose of regularization and also for facilitating future activities like
accounting of sale proceeds, delivery of materials etc.

420
iv) On receipt of Security Deposit from the bidder, sale order is issued
by MSTC requesting the Buyer to submit the sale value with
applicable duties / taxes within 10 days. (Security Deposit will be
retained by MSTC, which will be refunded to the Buyer on
completion of the contract and receipt of NOC from ONGC, within
15 days).
v) After getting the payment of full sale value from the buyer, delivery
order will be issued by MSTC. Payments will be forwarded by
MSTC to ONGC after deduction of their Service Charges (as per
agreement). ONGC will allow delivery of material to the buyer only
after receipt of payment, of full sale value, all applicable/ balance
due charges like ground rent, if any and also any balance
taxes/duties, still unpaid to MSTC, at the time of issue of delivery
order by MSTC, against production of Photo-ID-Card issued by
MSTC (containing buyer’s photograph and specimen signature).
Alternatively, Photo-ID-Card holder can authorize his
representative along with the Photo-ID-Card (or a Notarized copy
of the same) to take delivery of materials. Material delivery will be
done in the presence of security personnel to avoid pilferage, if any.
f. For various activities related to e-auction, the respective procedure / process
of MSTC will be applicable. However, for various internal activities of
ONGC (like fixation of Reserve Price, Competent Authority for approval,
etc,) the relevant provisions of Disposal procedure, BDP and other
Instructions issued from time to time, shall be applicable, as in case of non
e-auction cases.

40.4.5 Disposal of Packing Cases/Cans and Empty POL Barrels and condemned
furniture to employees

Packing cases/cans and empty POL barrels surplus to the requirement of


ONGC may be sold to the employees of ONGC provided the price of such
materials is fixed in consultation with the attached Finance and proper account
of such sales is maintained. In addition, the condemned furniture may also be
sold to the employees at price to be fixed in consultation with attached Finance.
Proper accounting of such condemned furniture will be ensured by all
concerned.

40.4.6 Disposal of bits

(a) The bits for disposal will be kept duly cleaned, oiled, greased and arranged
in suitable lots as per sizes.

(b) Preference would be given to the Govt. departments/Govt. of India


Undertakings for purchase of these bits. Reserve price of these bits will be
set by the Standing Condemnation and disposal board

(c) Bits, when either these are not required by Govt.Deptt./Govt.of India
Undertakings or when the price assessed by board of officers is not
acceptable to them, will be disposed of to private parties through other

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disposal methods such as E-auction and Open tenders. For disposal of bits
to private parties, the reserve price will be fixed by Standing Condemnation
and disposal board

(d) Diamond drill bits

The used/damaged diamond drill bits will be given to the manufacturer on


whom supply orders are placed for new bits. The manufacturers will retrieve
good diamonds out of the used/damaged bits for refitting the same in new
bits and will give value reduction for diamonds so retrieved by them. A
suitable clause will accordingly be incorporated in all future NIT and Supply
Orders for the purchase of new bits. Details of used/damaged diamond bits
will be intimated to the Purchase Authority so as to enable them to make
suitable provisions in NITs and Supply Order(s).

40.4.7 Disposal of used ‘Lead Acid Batteries’

(a) As per ‘The Batteries (Management and Handling) Rules, 2001’, used lead
acid batteries are to be disposed only through depositing with the dealer/
manufacturer/ importer/ assembler/ registered recycler/ re-conditioner of
the lead acid batteries or at the designated collection centres of used
batteries.

(b) Disposal through ‘buy-back’ of the used batteries by the supplier of new
batteries

i. When new batteries are procured, for replacing the used and
unserviceable batteries of similar type and specifications, following
procedure shall be adopted for disposal:

ii. Condemnation of the used and unserviceable batteries shall be


done, based on the certificate issued by user department. However,
fixing ‘Reserve Price’ shall not be necessary for disposal of such
used unserviceable batteries

(MM/42/2018 dated 04.10.2018)

iii. In tenders for procurement of new batteries, suitable provisions


should be incorporated for insisting the bidder to quote for ‘buy-back’
of the used batteries of similar type and specifications. In such cases,
evaluation of offers for new batteries should be carried out based on
“Net cost’ for each battery (arrived at after deducting the value offered
for each used battery from the total cost quoted for new battery).

iv. Accordingly, the Purchase Order placed for new batteries shall
indicate the ‘Net Amount’ payable after deducting the value offered
for used batteries. Further, for the purpose of accounting and
discharging Tax liabilities, a separate ‘Sale Letter’ should be issued
for the used batteries (by the same authority who issued Purchase
Order for new batteries), by keeping provisions for adjusting the

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deducted amount against the supplies (of new batteries) as the value
for the used batteries. The quote from bidder should indicate sale
price of new battery and purchase price of old battery so that ONGC
can issue invoice and pay VAT, accordingly.

v. On receipt of new batteries and adjustment of value for used


batteries (in the payment), concerned Purchase Officer shall issue a
‘Delivery Order’ (addressed to indentor, with copies endorsed to
Vendor and the concerned sections - viz. Finance, Disposal and
Security), so that vendor can collect the used batteries from the
locations.

vi. Accordingly, indentor shall hand over the used batteries to the
vendor against proper receipt and Gate Pass (issued on the authority
of the Delivery Order).

vii. Indentor shall forward copies of receipt obtained from the vendor
to Finance and Disposal sections for regularization of the sales
proceeds and also for inclusion in the returns to be filed with Sales
Tax authorities.

viii. In all other cases, where disposal of used and unserviceable


batteries cannot be done through the ‘buy-back’ arrangement as
mentioned in above para, disposal as per normal procedure should
be done through registered recyclers only. A copy of valid registration
certificate, issued by Ministry of Environment and Forest, or any
officer/agency designated by the Ministry, should be obtained from
the participants for such tender/auction.

40.4.8 Disposal of items where differential excise or customs duty has to be paid

(a) In cases where CENVAT credit benefit were availed on input or capital
goods and after the use the same are removed /sold as scrap, In-charge
MM will take care of payment of excise under CENVAT Credit rule 3(5A
and B). Further in case of imported goods cleared on concessional rate of
custom duty and without use same are declared as scrap, custom duty shall
be applicable on such imported material on original price of the imported
item w.e.f. the date of importation. I/c MM will take care of such duty
payment at the time of disposal.

(b) The amount of duties to be paid back shall have no bearing on the reserve
price or disposal of items

(c) The salvage section will maintain a record of such items which are disposed
of and an annual report on the same shall be presented to the concerned
key executive as a feedback to ensure better estimation of purchase
quantities.

(MM/04/2015 dated 28.04.2015)

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40.4.9 Disposal of scrap and dismantled facilities generated during execution of
Redevelopment projects and other LSTK contracts in Onshore

(a) In case of revamping/ redevelopment projects, the responsibility of removal


and disposal of scrap lies with the LSTK contractor.

(b) Concerned user group shall be required to identify the items/equipment


along with quantity that cannot be re-used and has to be disposed of as
scrap. The list of such items/equipments shall be mentioned in the tender
document. The items/equipments which are to be dismantled and disposed
off shall be declared as unserviceable and beyond economic repair.

(c) The removal of all discarded items shall be included as an integral part of
the scope of work in the tender. Further the estimated value of condemned/
discarded material needs to be indicated in the tender document with a note
that this amount shall be used for the purpose of payment of VAT/CST.
Bidder to declare whether they will provide form C for the Condemned/
Discarded material. Based on the undertaking VAT/CST shall be recovered
from the successful bidder.

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41 Inventory Management

41.1 Liquidation of Non Moving inventory

(MM/23/2017 dated 21.03.2017)


41.1.1 Non-Moving Inventories:

The Inventories (Stores, Spares & Capital Items on Stock) that have not
been consumed at location level (e.g. Mumbai, Ahmedabad,
Rajahmundry etc.), for 4 years period or more as on reporting date, will be
treated as ‘Non-Moving’ inventories. The non-moving inventory figures
shall be utilized for making provisions in the Balance Sheet.

41.1.2 Slow Moving Inventories:

The inventories (Stores, Spares & Capital items on Stock) that have not
been consumed at location level, for 2 years period as on reporting date,
will be treated as ‘Slow Moving’ inventories.

For the purpose of exercising effective control on inventory, concerned


work centres shall work on the list of slow-moving inventories, to liquidate
with an aim to prevent build-up of surplus and obsolete inventory.
Corporate Inventory Management will monitor and advise the work
centres on quarterly basis.

41.1.3 In cases where the material has not consumed for more than two years of
receipt, the concerned work centre must certify its shelf life and submit the
action plan to concerned Functional Director for utilization of material in
due course to prevent compounding to non-moving block.

41.1.4 Matcodes of Slow Moving items, irrespective of stock value, will be


blocked in ICE system for procurement. The authority for removal of flag
for procurement shall rest with the Functional Director, on need basis.

41.1.5 Where consumption of material which is part of Non Moving inventory, has
taken place during the year, such materials will be taken out from Non
Moving Inventory at the end of respective quarter.

41.1.6 ICE Team will run the flagging programme of Non Moving and Slow
Moving inventory at the end of each quarter, based on 4 years / 2 years
criteria respectively.

41.1.7 For the purpose of tracking & liquidation of unwanted inventory, slow
moving inventory will be identified separately for each work centre. It will
consist of items lying in inventory for over 2 years (excluding items
identified as insurance spares, which need to be kept in stock for
emergency purposes beyond 2 years).

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41.1.8 At the beginning of each financial year, the Corporate Inventory
Management Team will release time norms and cut-off age for disposal of
aged inventory. The cut-off age will be brought down to 2 years in line
with the age criteria of slow-moving inventory in subsequent years.

41.1.9 The work centers will be provided a time period not more than 4 months,
to bring out any discrepancies in the report and update the same in ICE
system. The work centres should also find avenues for alternate utilization
of such items, within this time period.

41.1.10 Upon expiry of the time period, the non moving items at each work centre
will be moved to surplus storage location created in ICE system and a
report of such surplus items will be circulated to all work centers across
ONGC for potential usage of inventory. A copy of the same will be
uploaded on ONGC reports portal by the inventory management team at
each work centre. These items will be blocked for further procurement at
the respective work centers.

41.1.11 All the work centers are provided a time period of not more than 4 months
(exact time period to be notified by CIM) to raise STOs and receive the
required material from other work centre, having non-moving items.

41.1.12 Latest by 15th of December, the items still remaining as surplus will be
identified for initiation of disposal action. Action for disposal of such items
should be initiated at the earliest and such items will then be moved to the
disposal location. These items will not be written off from the ICE system
till the action for disposal has been initiated.

41.1.13 Report in business warehouse module will be generated by the Inventory


management team on 1st of October each year for each work centre
providing details on items which will become non moving inventory if not
consumed within the next 6 months. This report will be sent to concerned
key executive, Chief MM and Head-Corporate Inventory Management so
that they may take appropriate actions for utilization of such material.

41.1.14 Report in business warehouse module will be generated by the


respective Inventory management team in 1st week of April each year for
each work centre, providing details on slow moving items and appropriate
action for utilization of such material to be taken by concerned.

41.2 Setting of Inventory levels

41.2.1 Introduction

a) The inventory management team should identify items at work centre


and establish inventory levels such as Safety stock, re-order point and
economic order quantity for maintaining optimum levels of inventory.
b) Typically, items which have a reasonably predictable consumption
and stable lead time should be considered for setting of levels.
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c) Annual rate contracts will need to be established for such items clearly
specifying the minimum order quantity that will need to be placed in
each order and fixed lead time for the supplier to provide the material.
41.2.2 Guidelines for setting of inventory levels

a) Each work centre should maintain a rolling estimate of expected


monthly consumption against each material required by them and
update the same in ICE system, every 3 months. A variation of more
than 100% as compared to historical consumption shall be brought to
the notice of concerned key executive and approval sought before
placing in the system
b) The lead time for such items will be fixed as per ARC in the ICE system
c) The fixed cost per order will be calculated against each ARC and
updated in ICE system.
d) The inventory holding cost per item will be calculated and updated in
ICE system
e) The safety factor for each item will be calculated on the basis of
service level defined for each item. Typically the service levels are as
follows but the inventory management team has the flexibility to make
appropriate changes wherever required:
Criticality Service level

Highly critical 99.9%


Critical 99%
Non-critical 95%

f) The variance in lead time and forecast error can be calculated by


ICE on the basis of historical data
g) On the basis of input provided to the system, the system will generate
Economic order quantity. In case, economic order quantity is less than
the minimum order size requirements agreed with the supplier, then
economic order quantity will be set equal to minimum order size.
41.2.3 Raising the request for re-order

The following two methods can be used to track inventory levels and
generate the request for re-order:
a. Continuous Monitoring
i. Under this method, the inventory is continuously tracked and re-
order request raised as soon as the inventory level drops to the
re-order points
b. Periodic Monitoring

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i. At the 1st day of each month, inventory in term of stock
months(rounded off to lower integer) will be calculated on the
basis of expected consumption and inventory level(minus safety
stock)
ii. If stock months of inventory is more than lead time, then no order
request will be raised by the ICE system
iii. If stock months of inventory is equal to lead time, the order request
will be raised for quantity equal to the maximum of the following:
- The expected consumption in the month immediately after the
lead time
- Economic order quantity as defined
41.2.4 Procedure for re-ordering

h) Against each item, an indentor and MM personal will be identified and


their CPF number recorded for notifications to be sent.
i) As soon as the inventory levels reach the Reorder point as identified
in the system, a PR will be raised by the system with quantity equal to
economic order quantity and an automatic message will be sent to the
identified indentor and MM personnel to take up the process further
j) For items identified for auto re-ordering, the purchase order will be
placed automatically with the supplier( shortlisted on the basis of
ARCs by the respective purchase sections ) and automatic
information message sent to identified indentor and MM personnel
k) The values entered into the system for calculation of inventory levels
will be assessed, at the minimum, after every 6 months by the work
centre and modified suitably.
41.3 Quarterly review: Tracking and monitoring of inventory

41.3.1 All work centers shall have a quarterly review to identify and deliberate
upon/resolve inventory related issues/concerns. Inventory management
team at work centre will prepare and release the following reports on a
quarterly basis

a. Report on stores with stock months greater than 9 months and spares
with stock months greater than 18 months per work centre. The
concerned key executive shall use this report for liquidation of excess
inventory.
Note: Stock months will be calculated on the basis of last 1 year
average monthly consumption and inventory held at the time of
assessment.
b. Report on items lying at site for more than 3 months and not
consumed (excluding items defined as insurance spares). The
concerned key executive shall take suitable measures for transfer of
such items to the main warehouse. Such material returned to main

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warehouse will be blocked for further STOs for a period of 30 days for
that location, unless approved by concerned key executive.
c. Report on outstanding discrepancies with respect to material in transit.
This report will be used by the concerned work centre for settlement of
discrepancies. A copy of this report will be sent to office of Chief-MM
and office of Head, Corporate Accounts.
d. Report of items which are lying in surplus for over 4 months but no
disposal action has been initiated. This will be brought to the attention
of Chief MM and concerned key executive.
e. Report indicating the items at each work centre for which safety stock
was breached so that any modifications if required can be made to the
inventory levels
41.4 Vendor Managed Inventory

41.4.1 Identification of items to qualify for VMI

l) Inventory management team will need to identify items which should


qualify for Vendor managed inventory.
m)The qualification needs to be done on the basis of following parameters:
i. Value and Volume
ii. Variability in consumption
iii. Desired service level basis criticality
n) Items which have high value and volume in inventory, high variability
in consumption and high criticality should be the first ones to be
considered for Vendor managed Inventory
o) The indenting/user group will make a business case to showcase the
benefits achieved by opting for VMI and present the same to concerned
key executive for approval before finalization of scope of work.
41.4.2 Responsibilities of ONGC and Vendor under VMI model

p) The detailed responsibilities of ONGC and vendor will be discussed


and decided at time of contract. The following guidelines may be
referred to while deciding the responsibilities of respective parties:
i. ONGC should take up the responsibility for Consumption planning,
forecasting and setting of inventory levels for items identified as
well as confirmation of purchase order on receipt of information
from vendor that next delivery is due to maintain inventory levels.
ii. Vendor should take up the responsibility for monitoring inventory
levels, order size calculation, generation of purchase
order/information to ONGC that next delivery is due and delivery
against purchase order.

429
q) At the time of entering into contract, the following items should be
established clearly. This list is not exhaustive or binding and
modifications can be made as required.
i. Communication and information sharing: The communication
channels(email, access to ICE systems etc.) as well as frequency
of communication between ONGC and vendor need to be clearly
defined
ii. Inventory Ownership: Agreement needs to be reached beforehand
regarding on whose book of accounts the inventory will be
reflected, ONGC or vendor.
iii. Warehousing: Agreement on whether ONGC will provide
warehouse space to the vendor or the vendor will manage inventory
at his premises.
iv. Payment terms: Frequency and time norms for payment to be made
to vendor.
v. Immediate communication in case of any major changes in
expected consumption or supply constraints at vendor site.

Care & Preservation of Stores

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PRESERVATION OF TUBULARS
42. GENERAL
42.1 All the tubular should be stored separately according to their sizes with box
and pin ends facing to particular side.
42.2 The serviceable, unserviceable (rejected) and retrieved casings may be
stacked separately with proper visual markings.
42.3 Tubular of the same size but of different thickness, grade and type of
connection to be stored in separate lots.
42.4 The tubular should always be racked on the proper racks. The racks should
be painted properly before use. Where racks etc, are not available the tubular
should be stacked horizontally within the safe carrying capacity of the floor
such stocks should be raised clear of the floor on battens or suitable
platforms, with each layer placed at right angles to its predecessor.
42.5 The practice of stacking tubular by putting casings of larger size underneath
as dunnage should be done away forthwith. Proper pipe racks either of
structural steel or unserviceable tubular should be fabricated for stacking all
the tubular with proper gritage. As another alternative, the pipe racks can be
made of masonry with proper roads on all sides.

431
42.6 The pipes should be so stacked that each row is distinctly visible i.e. there
should not be any difficulty in accounting the number of pipes and should not
be stacked too high, as rolling them on the truck will be difficult.
42.7 In storage accommodation, where changes in temperature may lead to
condensation of moisture, free circulation of air around and through has to
be ensured.
42.8 The number of rows in a stack should not be more than three for pipes of
size 9” and above and 4 pipes between 7” to 9” and 5 for pipes of lower size.
42.9 Stacking ends should be properly secured by putting line stoppers so that
the stacks do not slip and fall down and cause accidents.
42.10 Wooden stringers or soft support to be provided for stacking Casing pipes
with special grade/material like L-80, 13-Chrome alloy.
42.11 The pipes should be issued in the order in which they were received, i.e. the
pipes received earlier should be issued first. It normally happens that as the
new consignment comes the old pipes keep lying and ultimately get
damaged due to corrosion.
42.12 The threads protectors of the pipes should be opened and grease applied on
the threads and thread protectors, retightened after every 6 months (once
before monsoon).
42.13 Proper sign boards covering all details of tubular stacked at one place should
be provided
42.14 The pipes should invariable be handled with the help of crane and never the
pipes should be thrown over one and another. This cause dents in the pipes,
which ultimately results in discarding of the pipes. Sling should be put near
the ends of pipes and crane hook in the centre of the sling. Utmost care has
to be exercised by the Crane Operator/Staff deputed for this job so that pipes
do not get damaged while loading the same on the pole carriers/ trailers.
42.15 In case the pipes are lying in one particular stack for more than a year the
rows of the pipes should be turned up and down, i.e. the lower most should
be brought up and the upper most rows should be taken down.
42.16 Pipes should be colour coded to different grades and different thickness. The
colours used should be of good quality so that it does not get wiped of during
long storage & handling. The standard colours coding is indicated below to
ensure uniformity in painting colours at all the Projects.
42.17 So as to avoid the pipes from corrosive and rust the used/burnt oil will be
applied on the body of the tubular.
42.18 All pipes should be marked serially and measured and tally kept in stores
and stenciled or painted on the pipe in meters. At the time of issue for each
well, tally should also be sent to the well for counter check. When excess
pipes are returned, their serial number can be changed.
42.19 The rejected and unserviceable pipes should be condemned and sent out of
stores for use elsewhere. If they are not needed anywhere, they should be
kept in scrap yards.

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42.20 Tubular are to be issued from one coil/roll until it is exhausted

43.0 COLOUR CODIFICATION OF THE TUBINGS AND CASINGS:


The standard Colour Codification in case of API grade casing, tubing and drill
pipes adopted by the manufacturers is indicated below for information and
guidance of all concerned: -
43.1.a.42.1A paint band encircling the pipe at a distance not greater than 2 ft.
(0.61m) from the coupling or box.
43.1.a.42.2A paint band or bands encircling the centre of the coupling.
43.1.a.42.3Paint entire outside surface of coupling.
The colours are as follows:
1. GRADE C-75 BLUE
2. GRADE C-95 /R-95 BROWN
3. GRADE F-105 WHITE
4. GRADE P-110 WHITE
5. GRADE H-40 No colour marking or black at the
Manufacturer’s option
6. GRADE J-55 One bright green band
7. GRADE K-55 Tube bright green bands
8. GRADE N-80 One red band
Special clearance couplings are also painted the colours indicative of the
steel grade from which the couplings are manufacturer and this is painted
with a black band around the centre.
44.0 TRANSPORTATION, HANDLING, AND STORAGE:
API Tubular goods in general and threads in particular, are made with such
precision that they require careful handling, and whether new, used, or
reconditioned, they should always be handled with thread protectors in place.
44.1 TRANSPORTATION:
a) Water Transportation. Pipe suppliers or their agents should provide proper
supervision at the time of loading and unloading of water carriers to guard
against improper or insufficient Dunnage, inadequate braking to prevent
shifting during lurching of the ship, stowing pipe in or adjacent to bilge water,
injurious chemicals or other corrosive material, dragging pipe along with pile
and permitting couplings or thread protectors to hook together or strike the
edge of hatch opening or bump against the ship rail.
b) Railroad Transportation, when loading pipe on freight cars, in addition to
I.C.C requirements, wooden stringers should be provided across the bottom
of the car to provide suitable support for pipe and to allow space for lifting,
and also to keep pipe away from dirt. If the bottom of the car is uneven, the

433
stringers should be rigidly shimmed so that their tips will be in the same
plane- Stringers should be tied down properly to keep it from shifting.
c) Truck transportation. The following precautions should be taken for truck
transportation.
c.1 Load pipe on boasters and tie down with suitable chain at the bolsters.
In hauling long pipe, an additional chain should be provided in the middle.
c.2 Load pipe with all couplings on the same end of truck.
c.3 Care should be taken to prevent chafing of tool-joint shoulders on
adjacent joints.
c.4 Do not overload truck to the point where there is any danger that load
cannot be delivered to its destination without unloading.
c.5 After load has been hauled a short distance retighten load binding
chains loosened as a result of the load setting.
c.6 Trailors carrying tubular should have proper heavy duty pipe /poles
anchored properly on both side so that pipes do not roll out on its own in
case support chains give way.
c.7 Wooden stringers or soft support to be provided for transporting Casing
pipes with special grade/material like L-80, 13-Chrome alloy.
44.2 HANDLING
The following precautions should be observed in handling pipe.
44.2.a.1.1 ,Before unloading, make sure that the thread protectors
are tightly in place. The use of a spreader-bar with a choker-align at
each end is the recommended method of handling long pipe.
44.2.a.1.2 Avoid rough handling which might ding or dent the body of
pipe. Out of roundness will reduce collapse strength greatly.
44.2.a.1.3 Do not unload pipe by dropping. Unload one, two, or three
lengths at a time, depending upon the number that can be fully
controlled. When unloading by hand use rope slings, when rolling
down skids roll pipe parallel to the stack and do not allow pipe to
gather momentum or to strike the ends because, even with
protectors in place, there is danger of damaging the threads.
44.2.a.1.4 Stop each length before it reaches the proceeding length,
and then push into place by hand.
44.3 STORAGE
The following precautions are recommended for pipe storage.
44.3.a.1.1 Do not pile pipe directly on ground, rails, steel or concrete
floors. The first tie of pipe should be no less than 18 in from the
ground to keep moisture and dirt away from pipe.
44.3.a.1.2 Pipe should rest on supports properly spaced to prevent
bending of the pipe or damage to the threads. The stringers should
lie in the same plane and be reasonably levelled, and should be

434
supported by piers adequate to carry the full stack load without
setting.
44.3.a.1.3 Provide wooden strips as separators between successive
layers of pipe so that no weight rests on the couplings. Use at least
three spacing strips.
44.3.a.1.4 Place spacing strips at right angles to pipe and directly
above the lower strips and supports to prevent bending of the pipe.
44.3.a.1.5 Stagger adjoining lengths of the coupling.
44.3.a.1.6 Block pipe by nailing 1 by 2 or 2 by 2 blocks at both ends
of the spacing strips.
44.3.a.1.7 For purposes of safety, ease of inspection; and handling
pipe should not be stacked higher than 10 ft. Pipes should not be
stacked higher than five tiers at the rig.
44.3.a.1.8 Pipe in storage should be inspected periodically and
protective coatings applied when necessary to arrest corrosion.
45 INSPECTION AND CLASSIFICATION OF USED CASING AND TUBING
Inspection standards and classification for used casing and tubing have been
established and the procedures are outlined in this section.
45.1 INSPECTION CAPABILITY: Presently accepted methods of inspecting
the body section of pipe are visual, mechanical gagging,
electromagnetic, eddy current, ultrasonic and gamma ray. These
inspection techniques are limited to locating the cracks, pits, and other
surface imperfections.
Service induced defects considered to be representative of defects
associated with used pipe inspection are: Outside and inside corrosion
damage, inside surface wire line (Longitude) depending upon the
climatic conditions, the frequency of the application of burnt oil should
be increased. Also the tubular should be treated with composition “rust
preventive” or Paint PFU, bituminous black anti-corrosive. The threads
of the pipes should also be treated with grease and protected carefully.

46. STORAGE AND PRESERVATION OF INDIGENOUS CEMENT


46.1 General Instructions
46.1.1 So as to prevent water/moisture to seep in, it will be ensured that
there is no leakage anywhere in the storage go-down.
46.1.2 The bags should be stored on appropriate pallets to serve as
Dunnage.
46.1.3 The stacks of cement bags should not in any case be higher than 14
bags.
46.1.4 The maximum width of a stack should not be more than three meters.

435
46.1.5 In case the stack is more than seven to eight bags high than the bags
should be tie the piles together.
46.1.6 As far as possible the cement should not be stored for longer than
three to six months.
46.1.7 Once the cement has been stacked properly, it would not be
disturbed until it is to be used. However, in case the cement is to be
stored beyond a period of three months, then the bags in stock
should be rotated every three months.
46.1.8 The principle of “First comes First Out” should be followed strictly.
46.1.9 The go-downs must be checked fortnightly by an officer, not lower
than the level of MMO, so as to ensure that there is no leakage in
the go-down and that proper stacking of the bags has been done.
46.1.10 Record of stock rotation, when stocked for over three months,
implementation of turnover and fortnightly check of go-downs by
MMO as also inspection by their superior officers will be maintained.
It will be put up to the visiting officer.
The defaulting storekeepers and supervisory officers will be liable to disciplinary
action for non-compliance of above instructions.
47 STORAGE PRESERVATION OF CLASS ‘G’ CEMENT
47.1 As is known the imported class “G” cement is quite costly as compared
to indigenous oil well cement. There may be occasion when large
quantity of imported oil well cement might have to be stored at the
projects for considerably long period before consumption.
47.2 All concerned are advised to ensure proper storage of the above
category of cement and take following points into consideration for its
preservation.
47.2.1.1.1.1 The maximum bags for stack should not exceed eight
numbers.
47.2.1.1.1.2 The bags should be stacked over a wooden platform at
least 6” to 8” above the floor.
47.2.1.1.1.3 The bags in stock should be rotated every three months.
47.2.1.1.1.4 There should be enough gaps between two rows for good
ventilation and easy rotating of bags.
47.2.1.1.1.5 There should not be leakage anywhere in the storage
godown to prevent water/moisture to seep in.
48 PORTLAND/OIL WELL CEMENT AND MUD CHEMICALS
These items are to be stored on appropriate pallets to serve as Dunnage. Also,
the stacks of the cement should not, in any case, be higher than 14 bags. The
maximum width of a stack should not be more than 10 feet. Further, if the stack
is more than 7 to 8 bags high, the bags should be arranged in Header or
Stretcher Fashion, i.e. alternately lengthwise so as to the piles together.
Besides this, the cement, so far as possible, should not be stored longer than

436
3 months. Once the cement has been properly stacked, it should not be
disturbed until it is to be used.
49 HANDLING OF OWC
It will be ensured that Pulverized or granular consignments during
transportation are handled:
49.1.1.1.1 In palletised racks as far as possible.
49.1.1.1.2 Number of loadings and unloading is minimized as far as
possible.
49.1.1.1.3 If handling is being done in unpalletised state, i.e. in paper bags
directly, it is done under supervision of officer of ONGC who should certify
undamaged loading /un-loading (as the case may be). In such cases,
handling agent’s liability must be strictly supervised at dispatching as well
as receiving end.
49.1.1.1.4 Use of hooks in case of paper bags is avoided.
50 STORAGE/UTILISATION OF CEMENT
50.1 In case the cement is issued after its storage for over a period of six
months, the indenter concerned will specifically be informed so as to
enable him to get the same tested prior to actual utilization for quality
constructions.
50.2 The indenter must invariably be informed if sweep cement is required to
be issued so that it could be got tested for quality works.
50.3 The user Department should invariably get tested cement stored beyond
six months/sweeping cement so that the cement which is unfit for a
particular quality work like foundation can be utilized for other purposes
like construction of compound wall etc.

51 PRESERVATION OF CHEMICALS
GENERAL
51.1.1 The general causes of deterioration of chemicals are:
(a) Heat (b) Light (Particularly direct sun light) (c) Air and (d) Moisture
51.1.2 Chemicals should, therefore, be stored in their original packages in cool and
well-ventilated places. The containers of chemicals should be open for the
minimum period necessary. The packs and containers of the chemicals
should be examined (once in three months) for leakage due to loose stoppers
or damaged containers.
51.2 TRANSPORTATION, HANDLING, AND STORAGE
ACIDS
51.2.1.1.1 Rooms where acids are stored or used should be pucca
and their floors should not be slippery and must be kept clean.

437
51.2.1.1.2 Bottles or carboys should be stored away from direct
sunlight. If the bottles/carboys are full, about 5% of the contents
should be removed to allow expansion.
51.2.1.1.3 Separate shelves or compartments should be provided for
each type of acid. Nitric acid should be kept as far away as possible
from sulphuric acid and hydrochloric acid.
51.2.1.1.4 Containers with acid should be safeguarded against
mechanical injury and should be stored on a bed of dry sand about
5-7 cm thick.
51.2.1.1.5 Foreign material such as saw dust, cotton, paper or chips
of wood must not be allowed to fall into the acid.
51.2.1.1.6 Acids should on no account be mixed.
51.2.1.1.7 Pails of clean water and neutralizing solutions (10-20%
soda ash solution for neutralizing small quantities of acid on surface
of containers or equipment, 10% solution of bicarbonate of soda for
neutralizing acid on hands or other parts of body) should be placed
in or near the store room.
51.2.1.1.8 Acids should be handled with great care to prevent spilling.
If any acid is accidentally split it should promptly be washed down
with the neutralizing solution and water.
51.3 SULPHURIC ACID
51.3.1.1.1 The addition of water to strong sulphuric acid develops
heat. Water should never be added to sulphuric acid for diluting it
but always acid should be added slowly to water.
51.3.1.1.2 Metal drums containing strong sulphuric acid must not be
left open.
51.3.1.1.3 Metal drums containing strong sulphuric acid develop
internal pressure (formation of gas) under tropical conditions of
storage. Drums must be stored in a cool place preferably below
32oC. Body plugs of filled drums should be removed at weekly
intervals to relieve internal pressure and their refitted. During hot
weather the drums should be vented twice a week.
51.3.1.1.4 Workmen wearing goggles rubber boots, rubber gloves
and rubber aprons should handle the drums. Naked flame of any
kind should not be permitted on or near the drum. The drums should
never be struck with tool or hard object as the resulting sparks may
ignite the gases in the drum.
51.4 CHLOROSULPHONIC ACID AND TITANIUM TETRACHLORIDE:
51.4.1 Chlorosulphonic acid and Titanium Tetrachloride liquids are of a
corrosive and dangerous nature. They may be stored indefinitely under
conditions similar to those used for the storage of strong sulphuric acid.
The drums should be kept in a dry cool place, but not on wooden floors,

438
and away from any material likely to be damaged by a possible escape
of the corrosive chemicals.
51.4.2 Drums should be stored with the bungs uppermost and in such a way
that any drum is easily accessible. Great care should be taken to avoid
rough usage of the drums.
51.4.3 Pressure is occasionally developed and the operator should stand clear
of any spray that might be emitted by the release of pressure on opening
a drum. Leakage is shown by fuming near the faulty spot, if at the bung,
this may be tightened or new washer fitted. Asbestos string, smeared
with Vaseline, is used as a washer.
51.4.4 If a small leak develop in a drum (generally in the side seams) the drum
should be turned so as to bring the faulty place uppermost and any liquid
on the outside of the drum should be removed by dry service “Mops”
(Care being taken to keep the acid off the hands). Any faulty drums or
barrels should be decanted into sound drums as soon as possible.
51.4.5 In order to avoid the screwed plugs or caps of chlorosulphonic acid and
titanium tetrachloride drums becoming seized up they shall be coated
with grease graphite as soon as drums become empty.
51.5 ALKALIES:
51.5.1.1.1 Ammonia liquor bottles must be well cooled with water
(preferably iced water) before opening and should be opened with
the mouth of the bottle directed away from all persons.
51.5.1.1.2 Alkalis should be stored as far away from acids, as is
possible, preferably in separate rooms.
51.5.1.1.3 As caustic soda and caustic potash absorb moisture from
the air their containers should always be closed airtight.
51.6 PHOTOGRAPHIC CHEMICALS:
51.6.1.1.1 Chemicals like metal hydroquinine and silver and iron
compounds used as photographic chemicals should be stored away
from light in dark blue or deep amber coloured bottles, stopper and
sealed with paraffin wax.
51.6.1.1.2 Deadly poisons such as potassium cyanide, mercuric
chloride and Lead sub acetate should be kept in properly sealed and
prominently labelled bottles under lock and key. Personnel handling
these chemicals should thoroughly wash their hands immediately
after handling them.
51.7 MISCELLANEIOUS CHEMICALS:
Camphor and Naphthalene should not be stored near each other but in
separate airtight boxes.

52 PRESERVATION OF RUBBERISED MATERIALS STORAGE


52.1 GENERAL

439
Rubber equipment is to be stored in a dry, well ventilated and shaded place
away from other equipment. Ideal storage conditions are obtained by the
provisions of self contained accommodation where the maximum temperature
does not exceed 80 F. Where such accommodation cannot be provided, the
area selected is to be curtained off to keep out the light.
53 PRECAUTIONS
Direct sunlight has deleterious effect upon rubber. So, too has ultra violet light
and, for this reason rubber is never to be stored in the direct rays of the sun or
where mercury-vapour lighting is installed. Where rubber is stored in metal
containers, it is to be prevented from actual contact therewith. In storing articles
made from rubber in conjunction with fabrics, care is to be taken to ensure that
the fabric is not allowed to become damp, as this would cause rapid
deterioration. No oil or grease is to be allowed to come into contact with any
rubber equipment.
54 TREATMENT
Rubber equipment is to be treated with French chalk, while in storage, but care
is to be taken to ensure that fine orifices, capillary tubes, etc. of equipment does
not become blocked by excessive application of the chalk.
55 SPECIFIC FORMS
TUBING
As far as possible, rubber tubing is to be stored in straight lengths on shelves.
When rubber tubing is coiled, the outside of each turn of the coil is in slight
tension and this can lead to “Exposure cracking” with consequent
unserviceability.
SHEET
rubber sheet is to be stored flat, one sheet on another, with French chalk
between each sheet so as to prevent sticking of the sheets, sheet which is
supplied in rolls is to be unrolled and stored flat, one sheet upon another with
identifying marks upper most. By this means any tension which existed in the
material while in the roll form will be relieved and the danger of the material
cracking or acquiring a permanent ”Set” will be reduced.
SOLUTIONS AND COMPOUNDS
Rubber Solutions and self-Vulcanising Rubber Solutions are liable to rapid
evaporation or hardening if exposed to the air. Care is, therefore, to be taken
to ensure that the container caps are securely fixed and that the sealing
washers, where fitted, are in good condition.
56 INSPECTIONS:-
Rubber or equipment containing rubber in Store is to be inspected periodically
for signs of ageing or perishing. A manual examination will normally suffice to
establish freedom from deterioration.
Wherever possible, e.g. in the case of rubber tubing or sheeting, the item should
be examined under slight tension by stretching in order to expose surface cracks
or other signs of deterioration.

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57 PACKING AND TRANSPORTATION:-
As far as possible, rubber equipment which is being packed for transportation
is to be treated similarly as for storage. It is to be packed out of tension and, as
necessary, treated in accordance with Para above. No oily or greasy equipment
is to be packed in with rubber equipment. Small items of rubber equipment are
to be packed in with rubber equipment. Small items of rubber equipment are to
be wrapped and placed in a carton or paper bag, if possible, before packing.
58 STORAGE AND PRESERVATION OF RUBBER:-
Rubber goods have a tendency to breakdown during storage. Proper
conditions, however, will go a long way in prolonging their useful life. The usual
precautions in storage include:-
58.1 The rubber articles should be thoroughly dealt with powered French chalk
or Soapstone. Rubber stores, such as rubber bellows, diaphragms and
hinging materials should occasionally be wiped lightly with a 20% solution
of pure glycerine in water. This delays the process of hardening of rubber.
58.2 The coolest store-room available should be utilized for the storage of
rubber stores. The temperature in the store-room should be as low as
possible but should not exceed 70 to 80 F. In order to maintain a low
temperature and to give the necessary degree of humidity in dry weather,
unless air conditioning exists, “Khas-Khas Tattis” will be fitted over the
doors of the store-room and will be continually kept wet during the day,
the doors remaining open.
58.3 Store-room should be kept dark. Complete darkness is not necessary but
strong light should not be allowed to fall on the rubber. Painting the
windows, with a non-actinic colour or having windows obscured by dark
curtains, or covering the racks with gunny or brown paper helps in this
connection.
58.4 Provision of a very slight humid atmosphere which should, however, be
consistent with avoidance or any mould growth.
58.5 Severe draughts should be avoided. However, adequate ventilation
should be maintained, especially during monsoons, as measure against
fungal attack of rubber stores and other susceptible materials like cotton,
bags, wooden racks, poles or corrosion of exposed metal surfaces due to
excessive humidity. Ventilation is also required to remove the volatile
products of the ageing of rubber which are harmful.
58.6 Rubber stores should be stored away from electric generators,
electric motors, switch gears and other such electrical equipments since
they produce ozone in the vicinity of their atmosphere.
58.7 Contamination with vegetable and mineral oils, greases, organic solvents,
acids and their fumes, alkalis, dust and grit should be prevented. Where
greasy contamination occurs, this could be removed immediately with a
little petrol, the article thoroughly wiped dry and subsequently dusted with
French chalk.

441
58.8 Contact with copper and manganese, their alloys and compound should
be avoided.
58.9 Rubber articles should be kept without any restraint or distortion as far as
possible. Such articles as hoses should be stored either uncoiled or in
loose coils in order to avoid sharp bends.
58.10 Recently Ink Marking Oxford Blue ISC No 105 has been introduced in
service, which can be used for all rubber stores including tyres in stores.
In the absence of this specific Ink, if a marking has to be made on the
store, it should be made either on the wrapping as in the case of tyres or
on a tag tied to the store. No other paint or ink is suitable for marking of
rubber stores.
58.11 Rubber stores should generally be turned over quarterly and treated with
French chalk, if necessary, at each turnover. In addition to this, checks of
a percentage of stocks should be made occasionally during and soon after
monsoon periods. Where large quantities of stores are involved and it is
not possible to turn over the store a quarterly, the authorities of various
stores.
59 RUBBER HOSE
Following precautions should be taken during handling and storage of rubber
hoses.
a) Rubber hoses should be dried immediately after use, preferably by
hanging up in a tower, if available.
59.1.a.1.1 In case of new hose it should be ensured that there
is no condensation of moisture inside. If any moisture is present the
hose should be dried in the same manner as in sub para (a) above.
59.1.a.1.2 After drying out the hoses, little French chalk should
be sprinkled inside and outside of the hose.
59.1.a.1.3 For transport the hoses should be loosely coiled
and packed in boxes lined with water proof liners.
59.1.a.1.4 For storage, the hoses may be kept in boxes
referred to in sub para (d) above or stored in loose coils or flat in
racks. General storage conditions should be the same as for other
rubber stores.

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60 PRESERVATION OF METALS
GENERAL
60.1 CORROSION
Most metallic materials are subject to corrosion when stored under
unsatisfactory conditions. Corrosion injures the metal by pitting or by inter-
crystalline attack which often renders the material unserviceable. The harmful
type of attack is almost invariably due to condensed or other moisture, with or
without some more active agent.
60.2 PRESERVATION
The protective measures necessary for the satisfactory storage of metallic
materials will vary according to the type of material, its form(e.g.) thin-walled
steel tubes will require different treatment from that suitable for massive
machines and the storage accommodation available. Before placing metallic
materials in storage, any necessary preservation is to be applied and is to be
re-applied if necessary when the materials are inspected and the preservative
has been removed or damaged due to handling etc.
60.3 RACKS AND STACKS
60.4 Following are particular requirements of metallic materials.
60.4.a.1.1 Serious problems of corrosion arise where condensation of
moisture takes place in the presence of stored metallic
materials, particularly where there is contact between
dissimilar metals or between metals and absorbent
materials, e.g., brick work and wood work. It follows that
stocks if steel are best stored in steel racks, etc. and that
other metallic materials would best be held in racks, etc. of
material similar to that being stored. This deal can seldom
be directly achieved in practice, but painting of the racks
etc. which provide the paint work if kept in good condition,
will provide an effective alternative, and will be simple and
practical measure.
60.4.a.1.2 Lengthy pieces are to be supported as necessary
throughout the length to prevent undue sagging.
60.4.a.1.3 When stacking, particularly light sections, or thin walled
tubing, care is to be taken to avoid any crushing due to the
weight of the stack.
60.4.a.1.4 Metallic materials stored in cases are to be raised clear of
the floor on battens.
60.5 VENTILATION.
In storage accommodation, where changes in temperature may lead to
condensation of moisture, care is to be taken to arrange for free circulation of
air around and through the stored material by proper storage.

443
60.6 ARRANGEMENT.
Stocks are to be arranged in a manner facilitating their periodical inspection and
systematic turnover.
61 SPECIFIC FORMS
61.1 BARS, RODS, EXTRUSIONS AND TUBES.
Bars, etc. may be stored horizontally or vertically in racks as appropriate to the
section and its length. Where racks, etc. are not available or where their use is
impracticable, the materials may be stacked horizontally within the safe
carrying-capacity of the floor. Such stocks should be raised clear of the floor on
battens or suitable platforms, with each layer placed at right angles to its
predecessor. Each stack is to contain material of one type only.
61.2 SHEETS
Sheet metals other than aluminium and other light alloy, should be stored
horizontally and clear off the floor on suitable wooden platforms, with sufficient
thin wooden battens between sheets both to facilitate air circulation and to
support the sheets, bearing in mind the requirements of para above.
61.3 STRIPS, FOILS AND GUAZE.
Filmy strips, etc. are to be stored coiled on round wooden formers and suitably
protected from mechanical damage. The more robust of these forms of
materials may be stored tightly coiled without formers and on end.
61.4 WIRE AND CABLE.
thickness less than 16 S.W.G. are to be stored properly coiled on spools or
formers. For thicker gauges, winding on spools or former is desirable but not
essential. When spools and formers are not used, wire and cable are to be
stored properly coiled, avoiding any kinking or tangling.
62 INSPECTION
62.1 GENERAL
It is necessary periodically to examine all stocks of metallic materials during
storage to ensure:-
62.1.a.1.1 The maintenance of correct methods of storage detailed in the
preceding paragraphs.
62.1.a.1.2 That identity, as laid down, is maintained, and
62.1.a.1.3 Freedom from damage and deterioration, and the maintenance of
adequate protective measures.
62.2 PERIODICITY
The frequency of inspection will depend upon the storage conditions and the
nature of the material, but should be at least once a month.
63 CORROSION
The following descriptions of the commoner kinds of corrosion on metallic
materials that may be met are for information:-

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63.1.a.1.1 ALLUMINIUM AND ITS ALLOYS A normal initial corrosion
product is a light “Bloom” which develops into a white powdery deposit.
More advanced corrosion may lead to the formation of deep pits and
blistering. Aluminium coated, pure aluminium and certain anti-corrosion
aluminium alloys are intrinsically more resistant to corrosion than the high
strength alloy materials.
63.1.a.1.2 MAGNESIUM AND ITS ALLOY magnesium products are usually
protected by a chromate finish. The appearance of the material may vary
from a smooth black to a golden sheen. Incipient corrosion is readily seen
as a white powdery black to a golden sheen. Incipient corrosion is readily
seen as a white powdery deposit which in favourable circumstances (i.e.,
bad storage conditions), rapidly spreads, giving rise to multi-colour
corrosion products and deep pitting.
63.1.a.1.3 COPPER BASED ALLOYS corrosion takes the form of the well
known verdigrids, a blue-green corrosion product on heavy section. This
may cause little trouble, but on foil, fine wire, and thin tubes the material is
generally rendered useless.
63.1.a.1.4 FERROUS MATERIALS ferrous materials corrode by rusting. In
certain circumstances the so-called “stainless” steel will rust, especially in
marine atmospheres.
64 PROTECTION:
Where protective films are found to be damaged and, therefore, only partially
effective, immediate action is to be taken towards their renewal.
65 PACKING AND TRANSPORTATION
65.1 GENERAL
Depending on their nature and the journey involved, metals are to be
adequately and appropriately protected in accordance with the following
paragraphs before dispatch. Ferrous and non-ferrous metals are to be packed
in separate containers.
65.2 PRESERVATION AND WARPPING
Where necessary, metallic materials should be suitably wrapped using, for
example, paper, grease resisting etc.
65.3 REGID AND OTHER ROBUST FERROUS BARS, RODS, ETC.
Where packing cases are considered to be unnecessary for the safe transit of
these materials, they may, after any necessary preservation, etc. to be secured
in bundles. Such bundles should be of reasonable size and weight.
65.4 SHEETS.
Sheets metals, other than black steel sheets, are to be prevented from contact
with one another and consequent damage to surfaces by interleaving and over-
wrapping with suitable paper. They are then to be placed in cases, wood
packing/crate and adequately blocked and cushioned as necessary in order to
prevent movement within the case.

445
65.5 STRIPS,FOIL,GAUZE,WIRE AND CABLE
Metallic materials in these forms are to be coiled, as prescribed in para 65.3
and 65.4 above, and secured as necessary in suitable containers.

66 PRESERATION OF TEXTILES AND CORDAGE STORAGE


TEXTILES
66.1 If textiles remain in a damp condition, mildew and rot will quickly develop
and they are, therefore, to be thoroughly dry before being placed in
storage and are to be maintained in that condition. The storehouse is to
be kept well ventilated. Textiles are to be stored clear of the floor and
walls and so arranged as to permit free air circulation around the stored
material.
66.2 Textiles which have been pressure-baled are to so remain until it
becomes necessary to open the bale for the purpose of issue,
inspection, or where pilferage is suspected. This method of storage
economies space, protects the material against moisture and the
colours from fading, and reduces the risk of attack by moth, etc. Once
the stitching of the bale is cut, however, the tension is lost and, the
contents are, therefore, to be withdrawn, thoroughly dried if necessary,
aired, folded and placed individually into storage.
66.3 Woolens and silks are to be protected against moth by the use of liberal
quantities of Naphthalene or other approved moth-deterrent inserted
between the folds of the material.
66.4 The woodwork of storage racks, etc., is to be washed with a mixture or
creosote and kerosene. Where available however, all metal storage
racks, etc., should be used in preference to those made from wood.
66.5 Part-worn textiles are on no account to be stored with serviceable
textiles until cleaned. Used woolen textiles that are being retained for
subsequent issue are to be cleaned as soon as possible after receipt
into store as such articles are particularly liable to attack by pests.
66.6 Leather cloth is to be kept in rolls and dusted with French chalk, to
prevent sticking of the layers.
66.7 Cotton and linen fabrics are to be stored folded in cupboards or bins, the
fronts of which are to be covered in order to exclude light.
66.8 Felt is particularly liable to absorption of moisture and attack by pest.
66.9 Textiles are at all times to be kept clear of acids, alkalis, rust, oil, water
and other Rs. chemical substances which if contacted, would cause
destruction of the fibers.
66.10 Baled textiles may be stored at Zonal Stores in bulk stacks built up on
trestles. The layout of trestle storage is subject to the following
limitations:-

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66.10.1.1.1 A clear space of 36 inches is to be left between storage
shed, outer walls and trestles.
66.10.1.1.2 There is no set limit to the length of each stack provided that
:-
66.10.1.1.2.1 The width of each stack does not exceed 30 feet.
66.10.1.1.2.2 Gangways between stacks are of sufficient width to
accommodate the mechanical/ manual handling
equipment in use.
66.10.1.1.3 The top of each stack is to be not less than 2 ft. 6
ins, from lighting or other electrical installations.
67 CORDAGE
67.1 Bins or racks used for the storage of cordage are to be with shelves to
permit free ventilation. Rope is to be kept in coils and cord in hanks.
Heavy rope is to be raised clear of the floor on raised platforms. Should
ropes become wet they are to be dried naturally, as soon as possible.
Too much heat will cause the rope fibres to become brittle. If drying is
delayed, rot will set in. Frequently rot starts from the inside of the rope
and cannot be detected by external examination. Wet rope, or rope
infested with rot is on no account to be mixed in the store with rope which
is in a satisfactory condition. Coils of rope are to be turned over
periodically.
67.2 Cordage is at all times to be kept clear of acids, alkalis, rust, and other
chemical substances which, if contacted, would cause destruction of the
fibres.
67.3 The ends of rope are to be whipped with cord so as to prevent fraying
and separation of the strands and before lengths are cut the rope is to
be whipped either side of the cutting mark.
68 INSPECTION
68.1 Textiles and cordage are to be inspected at least once in two months.
68.2 In addition to the inspection referred to above patrol examination of
stocks is to be conducted at likely intervals to check general storage
conditions and detect any signs of incipient deteriorations.
68.3 If stored damp, textiles are liable to spontaneous combustion and during
inspection the hand must be inserted into the stacks to ascertain if there
is any undue heat present. If heat is detected the stack is to be
immediately dismantled and the articles thoroughly dried.
68.4 Textiles in store are to be opened out, inspected and aired as necessary.
The examination of woolen textiles in bales should not be carried out in
summer unless strictly necessary, owing to the greater risk of infestation
during that season. The bales should not be opened unnecessarily since
the contents are thereby rendered more accessible to pests.
68.5 Special attention is to be given to detecting any signs of mould growth,
fungal attack or other infestation, which if not promptly controlled, may

447
rapidly spread to abject stock, if infestation becomes apparent, affected
articles (unless they have been rendered useless) are to be subjected
to the treatment prescribed for that infestation. After the appropriate
treatment and when the infestation is effectively controlled the articles
are to be wrapped in suitable paper, the articles having been protected
as in para 68.3 above.
69 PACKING AND TRANSPORTATION
69.1 TEXTILE
69.1.1 The contents are to be protected against damage resulting from the
entry of insects, moisture, grease etc, with naphthalene and by
enclosure in paper, packing and Hessian. Tensional steel strapping is to
be applied where available, and “ears” are to be left at the corners of the
bale so as to facilitate handling.
69.1.2 Textiles are not to be packed in contact with any of the substances
mentioned in papa 9 above.
69.2 CORDAGE
69.2.1 Cordage may be sent loose when carried by road transport, but it is to
be packed in cases, wood packing, when forwarded by rail except very
heavy cordage, such as the large sizes of coir cordage, that do not
require any protection in transit, Cordage that is not packed for
transportation is to be securely bound with sting cord to prevent it
uncoiling.
69.2.2 Cordage is not to be packed in contact with any of the substances
mentioned in para above.

70 PRESERVATION OF AIR TUBE CLUTCHES


It has been observed that the Air Tube Clutches are not being handled and preserved
properly thus resulting into their premature failure. With a view to ensure their proper
working the following guidelines may please be followed to all concerned.
70.1 The Air Tube clutches should be issued only in the crates in which the
manufacturers supply these.
70.1.1.1.1 The manufacturers should be asked to pack the Acts by suitable fixing
on them M.S. Round or other rigidly secure the rims on both the sides.
70.1.1.1.2 There should be a regular turnover of the A.T.Cs and issues should be
made on first in first out basis.
70.1.1.1.3 Existing instructions for preservation of rubberised goods should be
strictly followed.

71 PRESERVATION OF COMPRESSED GAS CYLINDERS


71.1 SAFETY IN USE OF COMPRESSED GAS CYLINDERS
71.2 COLOUR CONSIOUS:

448
71.2.1 Colour consciousness is a “Must “in dealing with industrial
gas cylinders.
71.2.2 Gas cylinders are painted in different colours according to the
contained gases so that their visual identification is easy.
These colours, however, get abraded; obliterated or blurred
by rough handling and frequent use and like the elite female,
often need a surface lift. It often happens that while delivering
refilled cylinders, suppliers case is must meticulously adhere
to the colours code. Extra therefore, necessary in identifying
the contents of such cylinders.
71.3 IDENTIFICATION- COLOUR CODE
71.3.2.1.1 The statutory regulations regarding the colour code is to be
observed by suppliers of compressed gas cylinders.
71.3.2.1.2 It is found that in case of oxygen gas more than six different
sizes, ranging from 3 to 8 cubic meters are supplied to users,
depending on their availability. In the case of acetylene gas,
as many as eleven sizes are in circulation. Nevertheless, the
ground colours of the cylinder body are and statutorily MUST
BE the same for each kind of gas.
71.3.2.1.3 Paper labels or tags are pasted or attached to the cylinders
by suppliers to help identify of the contents, but these very
often get lost, torn or mutilated during transportation and
handling. In such cases the only reliable means left for
identification of contents is the ground colours of the
cylinder.
71.4 USE OF WRONG GAS
Use of a gas cylinder for any specific operation without its correct identification
is an unsafe practice. Instances have occurred in the past wherein compressed
oxygen was used in place of compressed air for starting a diesel-engine
generating set in a factory and this resulted in multiple bone fracture injuries to
attendants and serious damage to the engine-set putting it out of commission
over a long period. In one instance, (in a foreign country) Oxygen was used in
inflating the tyres of a passenger airplane with disastrous results. (It is not
difficult to imagine that the results of the mishap that could be caused by using
a wrong gas in a chemical process will be catastrophic).

71.5 PRECAUTIONS FOR FRESH RECEIPTS AND USE OF GAS


CYLINDERS
The bulk of gas cylinders are supplied to factories by road transport. The
supervisor concerned while receiving the gas cylinders ought to take the
necessary precautions such as: -
71.5.2.1.1 Before unloading, identify the cylinders by their colours as per the
standard colour codes or labels.

449
71.5.2.1.2 In case the consignment does not conform to the requirement (as
per the colour code), refer the matter to the Manager to decide whether the
consignment should be accepted or returned to suppliers.
71.5.2.1.3 In case it is decided to accept the consignment, cylinders should
be unloaded carefully taking precautions mentioned under “Unloading of
Cylinder”(reference next paragraph). In such cases the Manager should
bring to the notice of the suppliers the fact that the cylinders did not conform
to the colour code.
71.5.2.1.4 Each cylinder as received from suppliers should be complete with
its valve cap which is provided as a protection to the spindle valve
assembly, or hand wheel in the case of some LPG Cylinders. If the cylinders
are received without caps, bring this to the notice of the suppliers and ask
them to arrange for provision of the missing caps.
71.5.2.1.5 Before issuing any cylinders for process work, have its contents
identified in case of doubt with the help of laboratory staff and get each
cylinder clearly labelled or marked.
71.5.2.1.6 In case of doubt regarding the identity of the gas DO NOT ISSUE
it for process work until it is properly identified.
71.5.2.1.7 Ensure that empties are returned back to the filling factories
expeditiously.
71.6 UNLOADING OF CYLINDERS
Cylinders must be handled with case. They should not be dropped or allowed
to strike against each other. Gas cylinders furnish a common example of the
saying “Familiarity breeds contempt”. It is only a disaster, possibly with loss of
life or limb that brings home to everybody the fact that a charged or even an
apparently empty cylinder is a dangerous thing.
To ensure safety, the following method of unloading gas cylinders from road
vehicles or railway wagons is recommended.
71.6.2.1.1 Wherever possible unload directly on a raised platform by rolling
over a coir mattress.
71.6.2.1.2 If a suitable raised platform is not available slide down each
cylinder, over a heavily reinforced 15cm thick coir mattress of about 2m x
1m size, taking case that the bottom end touches the mattress first and then
roll it easy over the mattress. The weakest part of a cylinder is its valve
assembly fitted above its neck and extra care is necessary to ensure that
the valve is not subjected to rough handling or damage during unloading.
Do not drop cylinders from a height.
71.6.2.1.3 Make sure that the cylinder lowered on the mattress is rolled away
before the next one is slide down.
71.6.2.1.4 DO NOT uses a lifting magnet for loading or unloading any
cylinder.
71.6.2.1.5 A fibre rope sling may be used to lift one cylinder-never more than
one at a time, provided it is adequately strong and correctly adjusted to

450
prevent slipping. Use of a chain sling is unsafe as it is very likely to slip over
a cylinder.
71.6.2.1.6 If more than one cylinder has to be handled by a crane a properly
designed cradle with proper suspension should be used.
71.6.2.1.7 From the unloading platform to the storehouse from Store House
to the plant, the cylinder should be transported by means of a suitable
handcart. Such a cart would be provided with a chain or belt (but not without
a Chain) for securing the cylinder so that it cannot fall in case the handcart
happens to pass over a bump.
71.6.2.1.8 Provision of suitable handcart is particularly recommended for
transporting heavier cylinders containing acetylene, chlorine, ammonia
fern, etc, contents of which are in a liquid or partly liquid state.
71.6.2.1.9 If a cylinder is to be transported over a short distance and suitable
handcart or other carrying device is not available, it should be rolled over
its bottom edge but never dragged.
71.7 HANDLING OF ACETYLENE CYLINDERS:
71.7.2.1.1 Handing of acetylene cylinders merits special attention.
Acetylene cylinders contain a porous substance and a solvent
(acetone) in which acetylene gas is dissolved. It is a highly
flammable gas and in case it leaks, the acetylene air mixture is likely
to explode if ignited by flame, heat or spark in the vicinity. Acetylene
cylinders should be handled very carefully to prevent damage, which
might lead to bursting of cylinder or leakage through the cylinder
valve. They should not be hanged, jolted violently, dropped or
thrown about. When being unloaded from a truck, the cylinder
should be lowered gently.
71.7.2.1.2 In the work room a cylinder should be prevented from
falling by being fixed to the wall by a bracket or a chain in such a
way that it can be removed easily in case of fire-DO NO KEEP
cylinders near doorways or passage ways so as to create an
obstacle for smooth flow of men and materials.
71.7.2.1.3 When in uses an acetylene cylinder should be kept in an
upright or nearly upright position so as to prevent acetone escaping
with acetylene.
71.7.2.1.4 Always store full acetylene cylinders upright-never stack
them horizontally.
71.7.2.1.5 A well-ventilated storeroom should be provided for
handling and storage of cylinders. Empty cylinders should be
stacked away from full cylinders. ”FULL’ or “EMPTY” notices should
be displayed on each relevant stack.
71.8 CARE IN STORAGE: -
71.8.2.1.1 When storing cylinders upright, to ensure that suitable
brackets or stands properly secure them so that they will not fall. Do
not place them against a wall or bench unsecured.

451
71.8.2.1.2 If cylinders are stacked horizontally, use proper checks or
blocks at each end of stack to prevent their rolling. Place large size
Cylinders at the bottom; do not stack more than four high.
71.8.2.1.3 Do not keep cylinders in a Battery Charger Room or in Oil
Storage Room or in places where there is a likelihood of Oil, Acid or
Corrosive Liquid Splashing due to any reason.
71.9 PROPER STORAGE:
71.9.2.1.1 If cylinders are exposed to heat, the internal pressure will
increase, which may give rise to unsafe conditions, particularly in the
case of acetylene cylinders in which the internal pressures increase
by about 5-1/2 lbs per sq. inch for every degree centigrade of
temperature. The risk of explosion of an acetylene cylinder
increases sharply with the pressure in the cylinder, the pressure
increase being caused not only because acetylene is liberated from
the solvent but also because of de-composition (known as
dissociation) of the acetylene which makes it most liable to cause an
explosion. Acetylene at pressures in excess of 27-sq/sq. inch may
be caused to decompose by shock or heat.
71.9.2.1.2 Store cylinders well away from sources of heat such as
Ovens, furnaces, Boilers, Incinerators, Heating apparatus etc. Also
ensure that cylinders are not subjected to direct rays of the sun. Do
not use tarpaulin or any other cover in direct contact with cylinder as
a protection against the sun.
71.9.2.1.3 Always ensure that cylinders are protected from rusting or
corrosive conditions. Do not place cylinders directly on wet soil. Use
proper Dunnage.
71.10 CARE IN HANDING
71.10.2.1.1 Oil or grease will ignite violently in the presence of oxygen
and may even lead to explosion in case oxygen cylinders and
regulator fitting should be kept away from all sources of
contamination such as oil drums, storage batteries, paint drums,
underneath a bench or machine bed, etc.
71.10.2.1.2 Do not keep oily or greasy cotton waste or rags or clothes
on cylinder. It has been experienced that oily rags and cotton wastes
have at times lead to spontaneous combustion which in the vicinity
of oxygen cylinder can be disastrous.
71.10.2.1.3 Ensure that rat or dirt of any sort or oil does not enter
regulator assemblies.
71.10.2.1.4 Do not lubricate cylinder valves.
71.10.2.1.5 Use only the standard keys for opening the valves and
make sure that these are free of any oil or grease. Do not increase
the leverage of keys or spanners and DO NOT MAKE any attempt
to get gas from cylinders with broken valve spindles. Any of these

452
actions may damage the cylinder valves and render the cylinder
useless.
71.10.2.1.6 Do not use cylinders as rollers, work supports or jacks.
71.10.2.1.7 The recommended method of lifting a cylinder is the use of
fibre rope slings in preference to the metal chains. Cylinders must
not be lifted with magnets.
71.10.2.1.8 Cylinders should not be loaded loosely in a vehicle failing
which they will come to violent contact and be subjected to jolting
and damage during vehicle movement.
71.10.2.1.9 Never allow cylinders to come in contact with electrical
apparatus of live wires.
71.10.2.1.10 Keep cylinders away from sparks, flames, or slag from
welding and cutting operations.
71.10.2.1.11 Cylinders that have become damaged in transit or in the
course of being used in the plant or for any other course should be
handled in the same manner as leaking cylinders.
71.11 CARE IN THE USE OF FITTINGS
71.11.2.1.1 To prevent the interchange of fittings between cylinders of
combustible and non-combustible gases, the valve outlets have left
hand and right hand screw threads respectively. Thus, a built-in–
safety is provided in valve assembly design. Cylinders containing
oxygen, nitrogen, compressed air, carbon dioxide and other non-
combustible gases have the conventional right hand threads at Their
spindle valve outlets. Whereas cylinders containing combustible
gases such as Acetylene, Hydrogen, Propane, Bur Shane, Coal
Gas, etc. have left hand threads, at the spindle value outlet.
71.11.2.1.2 Here it is pointed out that for all types of gases combustible
and non-combustible, the main spindle valve (hand wheel in the
case of some LPG Cylinders) which controls gas supply from
cylinders to regulator is always a conventional design, i.e. the gas
supply is shut when the key is turned clockwise. This is to avoid
combustion when gas supply is required to be closed down in an
emergency. It is only at the outlet and of the main valve that the
screw threads are differently designed so as to prevent the regulator
assemblies of combustible gases being used on non-combustible
gas cylinders.
71.11.2.1.3 If decomposition starts in a combustible gas cylinder, the
flame, if any should be extinguished and the valve closed. If part of
the cylinder becomes hotter, the valve must be kept closed and the
cylinder must be removed to an area where no one will be injured
should it explode. To cool it down, jets of water should be placed on
to it, even for hours if required.
71.11.2.1.4 Do not attempt to use regulator assembly on a cylinder for
which it is not designed. Hydrogen, acetylene and propane

453
regulators are fitted with left hand threads of the same size but
Acetylene regulators should not be assembled on Hydrogen
cylinders, which are filled, to a much higher pressure than is suitable
(or safe) for acetylene or propane.
71.11.2.1.5 Under no circumstances should a cylinder used for storing
one type of gas be used for storing another type. This is of particular
importance with such gases as oxygen on the one hand and
hydrogen or acetylene on the other. Mixing up the gases would
produce a serious explosive risk.
71.12 TRANSPORTATION
A few common type of trucks used for transportation of cylinders are
shown below.
71.12.2.1.1 A light truck is useful in changing Manifold cylinders.
71.12.2.1.2 Unloading cylinders is easier with balanced cradle.
71.12.2.1.3 Two-man carrier is particularly useful over rough places.
71.13 LEAKING CYLINDERS
Leaking Cylinders should be reported to the Safety Department who will take
immediate action to dispose them, In case of small laboratory-size-cylinders of
corrosive or poisonous gases, leaking cylinders should be placed under a hood
that has the ventilation system running, until such time they can be disposed
off.
71.14 REPORTING OF GAS CYLINDER ACCIDENTS
An accident caused in the use of gas cylinders involving loss of life or serious
injury, has to be reported to the Chief Inspector of Explosives in accordance
with the provisions of Gas Cylinder Rule 1940. This requirement is in addition
to the similar requirements under the Factories Act and other concerned
regulations, which are normally followed whenever a serious accident is
caused.
71.15 GAS CYLINDERS-IMPORTANT ‘ DONTS’
71.15.2.1.1.1.1 DO NOT ISSUE a cylinder to plant unless contents are
clearly identified.
71.15.2.1.1.1.2 DO NOT ISSUE a gas cylinder in process unless contents
are identified.
71.15.2.1.1.1.3 DO NOT Handle cylinders or valve assemblies with greasy
hands or oily rags.
71.15.2.1.1.1.4 DO NOT Lubricate cylinder valve threads.
71.15.2.1.1.1.5 DO NOT use cylinders as rollers, work supports or jacks.
71.15.2.1.1.1.6 DO NOT stack cylinders near sources of heat or in direct
sun.
71.15.2.1.1.1.7 DO NOT Lay cylinders direct on wet soil.
71.15.2.1.1.1.8 DO NOT place cylinders against wall or bench unsecured.

454
71.15.2.1.1.1.9 DO NOT Keep cylinders in battery charging room or in oil
storeroom.
71.15.2.1.1.1.10 DO NOT Allow cylinders to come in contact with electrical
apparatus or live wires.
71.15.2.1.1.1.11 DO NOT Allow empties to remain idle in the factory. Return
them for refilling and reuse.
71.16 Compressed Gas Listed In Order Of Hazard With Cylinder Pressure
Acetylene 250 PSI
Oxygen 2200 PSI
Hydrogen 1800 PSI
Chlorine 450 PSI
Ammonia 250 PSI
Nitrous Oxide 800 PSI
Sulphuric Dioxide 300 PSI
Nethyl Chloride 300 PSI
Propylene 300 PSI
Ethylene 1800 PSI
Nitrogen 1000 PSI
Carbon Dioxide 1 000 PSI
71.17 STORAGE OF HAZARDOUS CHEMICALS
Ref Letter No. 33(2)-89 Genl./961-63 dt.9.3.90 from Directorate General of
Mines & Safety.
Every container of a hazardous chemical shall be clearly labelled or marked to
identify:
71.17.2.1.1 The contents of the container.
71.17.2.1.2 The name and address of the manufacturer or importer of the
hazardous chemical.
71.17.2.1.3 The physical chemical data as per criteria.

72 EXPLOSIVE-STORAGE AND USE


72 Regulation 48A-
72.2 (a) Explosive shall be transported in suitable containers.
72.2.2.1.1 No person other than a competent person specially trained
and duly authorized in writing by the Manager for the purpose shall
issue, handle, transport or use explosives.
72.2.2.1.2 Explosive shall be issued only to competent person upon
written requisition signed by installation manager.

455
72.2.2.1.3 The preparation of charge, and charging and firing of
explosives shall be done by the competent authority.
72.3 (b) Explosives shall be stored in a magazine in safe manner in the
charge of a competent person and shall be checked for deterioration at
regular intervals.
72.3.2.1.1 The magazine at offshore installations shall be so located
that it is not frequented by persons and shall be away from living
accommodation. It shall be mounted in a manner such that in case
of emergency the same can be quickly discharged in to the sea.
72.4 Explosive shall not be stored together with detonators or any primed
explosive.
72.5 Deteriorated explosives shall not be used.
72.6 All explosives issued from a magazine shall be accounted for and
unused explosives shall be returned to the same magazine on the
completion of the operation for which they were drawn.
72.7 A written record of all issues, use, and return of each explosive shall be
maintained in a bound paged book kept for the purpose and shall be
signed and dated by the competent persons in-charge of the magazine
and shall be countersigned by the installation manager.
72.8 Persons storing, transporting or otherwise handling explosives shall not
smoke of carry open lights.
72.9 Measures shall be taken to protect persons from special problems of
using explosives under water.
72.10 Precautions shall be taken to safeguard against dangers from stray
electric currents.
72.11 The firing lines and detonators wire shall be kept short-circuited during
charging operation. The connection between detonator and firing line
shall be made just before firing.
73 PRECAUTIONS DURING LOADING AND UNLOADING OF PETROLEUM
TANKER
73.2.2.1.1.1.1 Every tanker while it is being loaded or un-loaded and until
its valves have been shut and filling pipe and discharge faucets closed, shall
be attended by a competent person authorized for the purpose.
73.2.2.1.1.1.2 Loading and unloading of tankers carrying petroleum shall
be performed during day light hours.
73.2.2.1.1.1.3 Provided that when it is necessary to carry out such
operations after day-light hours, these shall be performed with such
precautions as may be specified in writing by the Manager or installations
Manager.
73.2.2.1.1.1.4 In the loading and unloading area all pipe-lines, filling and
delivery hoses or metal pipe, metallic loading arms, swivel joints, tanks,
chassis of tankers shall be electrically continuous and be efficiently earthed.

456
73.2.2.1.1.1.5 No mechanically propelled tankers on land shall be loaded
or unloaded until its engine has been stopped and battery isolated from the
electrical circuit and electrically isolated. The engine shall not be re-started
and the battery shall not be connected to the electrical circuit until all tanks,
and valves have been securely closed.
73.2.2.1.1.1.6 Provided that where special conditions exist which make
the compliance with the provision of this sub-regulation reasonably
practicable, the Chief Inspector may by a general or special order in writing
and subject to such conditions as he may specify in such order, grant
relaxation from the aforesaid provision.
73.2.2.1.1.1.7 Adequate Fire-Fighting equipment shall be kept readily
available during loading and unloading of tankers for immediate
use.
74 STORAGE TANK
74.2.2.1 (c) Every tank for the storage of petroleum in bulk shall be
constructed of iron and steel in accordance with the specification
approved by the Chief Inspector through a general or special order in
writing.
74.2.2.1.1 The tanks shall be erected on firm foundations or supports
of non-combustible material in accordance with sound
engineering practice.
74.2.2.1.2 The height of a storage tank shall not exceed one and a half
time its diameter or twelve meters whichever is less.
Explanation– For the purpose of this sub-regulation the height of a tank
shall be the height from its bottom to top curb angles.
74.2.2.1.3 An air space of not less than 5 percent of the total capacity
of the tank or the space prescribed in the specification referred to sub-
regulations (1) (a), whichever is less, shall be kept in each tank
74.2.2.2 (d) Every tank after being installed or re-installed and before being
put in use shall be pressure tested by a competent person so as to
ensure that it is free from any leakage and is suitable for storage of
petroleum.
74.2.2.2.1 (A report of such test shall be maintained in a bound paged book kept
for the purpose and signed and dated by the person making the test.
74.2.2.3 (e) Every tank installed above ground having capacity in excess of
1000 cubic meters shall be separately enclosed with a dyke or bound
constructed above the ground level with an enclosure volume not less
than the capacity of such tank.
74.2.2.3.1 All enclosures mentioned in clause (a) shall be provided with proper
discharge system to prevent accumulation of Oil or Water in the
enclosures.
74.2.2.4 (f) Every storage tank including its roof and all metal connections
shall be electrically connected with the earth in an efficient manner.

457
74.2.2.4.1 The effectiveness of earthling shall be tested once in twelve months.
The result of every such test shall be recorded in a bound-paged book
kept for the purpose and shall be signed and dated by the person
carrying out the test.
74.2.2.5 Every storage tank shall be protected against lighting by suitable
lighting arrestors.
74.2.2.6 (g) No person shall enter or be permitted to enter a tank for cleaning
or maintenance unless the tank has been examined by a competent
person and found to be gas-free.
74.2.2.6.1 When it is necessary to enter into a tank which is not gas-free, persons
who are required to enter the tank shall be provided with approved type
of self contained breathing apparatus or a full face piece mask of
approved type with a pressure supply of reparable air.
74.2.2.6.2 During the whole time that any work of cleaning or maintenance inside
a tank is progress.
74.2.2.6.2.1 A competent person who is qualified to administer
artificial respiration and first aid shall be present on the
spot throughout and
74.2.2.6.2.2 Approved portable hand lamps shall be exclusively
used in such work.
74.2.2.6.2.3 Adequate number of approved type self-contained
breathing apparatus or full-face piece mask shall be
kept available for use in emergency.

75 STORAGE AND PRESERVATION OF ELECTRONIC EQUIPMENT AND


COMPONENTS
75 Causes of deterioration
75.2 Shocks, hits, vibrations and compression can cause wearing of
Electronic equipments resulting in false readings, structural failures or
fractures.
75.3 Extreme temperatures and humidity can cause the sub-components to
lose their natural properties and thus the equipment may dysfunction.
75.4 The electronic equipment shall be saved from dust and sand.
76 Precautions to be taken during storage and use
76.2 Mechanical damaging factors shall be eliminated by handling them
carefully and providing suitable packing while moving. Necessary
marking on boxes/cartons i.e. “Handle with care-Electronic Instruments”,
“Save from Rains and Sunlight”, “ Keep the box upright” with necessary
arrow marking etc. can help to reduce handling damages.
76.3 Temperature should be maintained as specified for instrument for
operation and storage by use of air- conditioned room.
76.4 Equipment are sealed in dry, clean and dust free atmosphere.
458
76.5 Periodical warming and cleaning of equipment is desirable.
76.6 Exposure to ultraviolet radiation of high intensity help in retarding fungus
growth
76.7 The equipment should invariably be stored under covered
accommodation.

77 STORAGE AND PRESERVATION OF MEDICINES


77 Causes of deterioration
Chemical incompatibility, acidity, hydrolysis, trace element, metals,
atmospheric conditions light and heat can affect medicinal substances in such
a manner as to vitiate or nullify their therapeutic usefulness.
As the medicines are “perishable items” (with limited shelf life) therefore their
care and storage is of vital importance
78 Precautions to be taken during storage and use
78.2 Medicines should be stored in cool and dark place as the drugs are liable
to undergo chemical deterioration as a result of high temperature and
exposure to air, moisture and light.
78.3 Short life drugs, serum and vaccines lose their potency after the
prescribed period. It shall therefore be ensured that they are consumed
/ issued within their life period.
78.4 While buying the medicines it shall be advised to the supplier that on
date of supplies, medicines shall have minimum of 80% of their shelf life
so as to minimize losses attributed to shelf life.
78.5 The important groups of medicines like injections, vaccines, and sera
etc. should periodically be examined.
78.6 On the basis of deterioration due to high temperature, the storage shall
be classified in following two groups:
78.6.2.1.1 Medicines requiring storage at temperature below 10
degree C- example sera, anti-toxins, vaccines, antigens, penicillin,
blood and plasma. These medicines shall be stored in a refrigerator.
78.6.2.1.2 Medicines requiring storage between 10 degree C to 26
degree C. Example Hydrogen Peroxide, ointments and liniments,
tonic acids, essential oils and Ergot and its preparations. Such
conditions can be provided by installing air conditioner when such
facilities do not exist storage shall be at dark place.
78.7 The container should be kept well closed, air tight and in good condition
78.8 Care in transportation, collection and distribution is of utmost
importance, particularly in warm climate as any deterioration resulting
from undue exposure to heat cannot be restored by subsequent
cool/cold storage.

459
79 PRESERVATION OF TIMBER
79 STORAGE
79.2 GENERAL
79.2.2 Timber is to be protected from sun, rain, etc and is to be stored under
cover in an “Open” type shed in preference to a “Closed” one as the
former permits better ventilation. The shed, however, is to be
constructed that protection against driving rain, etc is afforded.
79.2.3 Stored timber is to be raised at least 9 in off the floor or ground on
sleepers which have previously been treated with creosote and solidly
laid and spaced from 2 to 4 ft apart, according to the thickness of the
creosote. Clean wooden battens are to be placed on the sleepers so as
to prevent any creosote from coming into contact with the stored timber.
79.2.4 Timber in storage is to be arranged in stacks by either of the following
methods whichever is the most convenient:-
79.2.4.1.1 THE ‘STICK’ METHOD planks are to be laterally
separated at lease1/2 in, from each other, and “Sticks” (Strips of
about 1 in square) of even thickness are to be laid across and
between each layer so as to allow free air circulation. The “Sticks”
are to be positioned directly above the foundation sleepers so as to
form “vertical” lines of Sticks, each line having a foundation sleeper
at its base. The correct positioning of “Sticks” in the stack is most
important since, otherwise, bending and warping of the stored timber
is likely to occur. The “Stick” used are to be dry and free from fungus
rot and disease, and they are to be clean so as to avoid any staining
of the stored timber, as stains, particularly on hard woods, are very
often difficult to remove.
79.2.4.1.2 THE ‘CABINET METHOD” ‘Sticks” are not used in the
“Cabinet” method of storing timber. Planks are to be laterally
separated from each other to an extent dependent upon their width
and consistent with the stability of the stack, and planks in each
alternate layer are to be placed over the spaces in the layer below.
The “Cabinet” method is only practicable where the timber is of
sufficient width to provide self-support, and the “Stick” method,
described in sub Para 4 (a) above, is normally the method to be
preferred. The “Cabinet” method however, is economical in that
“Stick” are dispensed with.
79.2.5 When stacked in the open the upper layers of stacks are to be
progressively reduced in width so as to form a sloping roof which, when
covered with tarpaulins, etc, diverts rainfall etc, from the stack.
Coverings, however, are to be arranged so that free air circulation is
possible throughout; an open air space should be left between the cover
and that ground at the base of the stack.
79.2.6 Stacks of unseasoned timber are to be approximately 6 ft. wide and
those of seasoned timber approximately 8 ft. wide. Heights of stacks are
not to exceed their width, or other-wise they are likely to become

460
unstable. Planks of similar thickness are to be stacked together and
those of dissimilar length are to be “Sized” as far as possible, the planks
in each layer being arranged in order of length so that the shortest
planks are piled at one side of the stack and the longest at the other,
one end of the stack being made even faced and perpendicular.
79.3 PLYWOOD AND OTHER LIMINATED BOARDS:
79.3.2 Play wood, etc, must be subject to damp and is always to be stored in a
dry place.
79.3.3 Before plywood sheets, etc, are stacked for storage superficial dust is to
be removed, as it is liable to absorb and retain moisture.
79.3.4 Moisture-proof cases containing plywood, etc, should not be opened
until the contents are required to use. Any sheets remaining after issues
have been made are to be kept in the case, the top of the case being
covered with moisture-proof paper and weighted down. Plywood sheets,
etc, other than those in moisture-proof cases are to be stacked flat on
each other and supported off the floor on a strong, flat wooden base.
80 INSPECTION
80.2 , nevertheless, Stocks of timber are to be carefully inspected at regular
intervals in order to detect signs of rot, decay, fungal attack or pest
infestation. The inspection of unseasoned timber may be carried out at
the same time as the timber is turned and re-stacked.
80.3 Seasoned hardwood timber stored in the open is to be inspected at least
twice a year during the period of June to October in order to detect
infestation by powder pest beetles.
80.4 Plywood is similarly to be inspected at regular intervals and any showing
sign of mould, decay pest infestation is to be withdrawn at once from the
stack.
80.5 In addition to this regular periodical inspection of stocks “Patrol”
inspection of timber and plywood store-houses is to be carried out at
intervals to check general storage conditions, and at the same time a
visual examination of stocks chosen at random is to be made to detect
any incipient deterioration.
81 PACKING AND TRANSPORATION
81.2 PLANKS
Provided it is sufficiently robust, no packing other than securing in bundles with
tensional steel strapping is necessary when timber in the form of planks is being
prepared for transportation. Bundles should be made up of planks or pieces of
even length and thickness wherever possible.
81.3 SHEETS
Plywood and other sheet forms of timber are to be packed in crates for
transportation or in cases of dispatch containers are used; they are to be clean
and dry. Before commercial grade plywood is packed, it is to be ensured that
any necessary treatment referred in para above has been satisfactorily applied.

461
82 PRESERVATION OF LEATHER MATERIALS
82 General
82.2 Leather is divided into the following two main groups both of which are
purchased for use, either as raw material or in the form of equipment:-
82.2.2.1.1 HEAVY LEATHER As used for hydraulic washers, backing pieces,
hose strips, straps, mill-bands and belting.
82.2.2.1.2 LIGHT LEATHER As used for aprons, gloves, and upholstery.
The method of tanning and treatment during manufacturer will vary according
to the type of leather being produced. Types of heavy leather which are highly
flexed in use, such as belting and harness leather are subjected to an additional
process known as currying. To the expert, curried leather can be recognized by
its appearance, flexibility and slightly- greasy feel.
83 STORAGE CONDITIONS:
83.2 It is important that leather or equipment manufactured wholly or partly
from leather is stored in a dry and well ventilated building. Leather
should not be stored in a draught or exposed to strong light.
83.3 Bins and Racks are to be provided with canvas curtains and top covers
to protect the leather from excessive light and dust.
84 MOULD GROWTH
Leather is very prone to moulds and, if stored in damp or humid atmospheres,
moulds will soon appear. If moulds develop they should be wiped or brushed
off, and, provided the mould has not been allowed to develop to a serious
degree, it will have had no appreciable effect on the serviceability of the leather.
Further, mould growth is to be prevented by ensuring that storage conditions
are in accordance with para 2.0 above.
85 DRYING
If leather has been allowed to become wet, care should be taken to ensure that
it is dried slowly, no accelerate means of drying are to be adopted.
86 PRESERVATION
86.2 If stored under reasonable conditions, leather will remain in prime
condition for many years and rot-proofing or preservative treatment
additional to the incorporated during manufacture is not normally
necessary. If conditions of storage are unavoidably bad, some degree
of preservation may be desirable but only on certain classes of leather.
In no circumstances is oil or grease to be applied to the following types
of leather:
86.2.2.1.1 glove :
86.2.2.1.2 Chamois ; or
86.2.2.1.3 upholstery hides

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Heavy leather sheets should be turned over at least once in every six
months of storage. The materials should on no account be stacked on
to a concrete floor.
86.3 Metal parts of leather equipment are to be suitably protected.
86.4 Leather articles in which woolen textiles are incorporated are liable to
damage by moth, etc. and wherever possible should be dusted or
treated with moth preventive.
86.5 Soap yellow is the authorized preservation, where it is important to
maintain the stiffness or rigidity of the shape of the store e.g. blocked
leather items and articles made from uncurried vegetable tanned
leather. The soap is applied to the grain side of the leather to prevent
cracking. Dubbin is the correct preservating for curried leather and
articles made there from which have to be maintained in a self and
pliable condition. An exception to the rule being leather accoutrements
(personal leather equipments) which should invariably be preserved with
soap yellow, even if made from curried leather.
86.6 All leather articles should be thoroughly cleaned prior to the application
of the appropriate preservatives. Cleaning with a dry brush has found to
be sufficient is most cases to remove dust, dirt and other adhering
impurities. The leather should not be washed with soda or socked in
water nor dried before an open fire. After the leather has been
thoroughly cleaned, the best method of applying preservatives is to work
it into the leather by means of a rag sponge or by and when the article
is in a moist condition. The preservatives should be applied on the
correct surface of the leather. After the application of the preservatives
the leather should be left aside for 2-3 days to allow the preservatives to
be thoroughly absorbed. Then the stores are cleaned by wiping with a
dry cloth before taken into use or storage.
87 INSPECTION
Stocks are to be examined at least once every six months. For heavy leather
this can conveniently be done when stocks are turned over in accordance with
paragraph above. Any signs of mould are to be regarded as an indication that
the storage conditions are unsuitable. In these circumstances the leather is to
be cleaned and stored under the conditions prescribed in Para above.
88 PACKING AND TRANSPORTATION
88.1 When packing leather equipment, damaged from moisture, oil and abrasion
should be guarded against. As a general rule, leather equipment is to be
wrapped in paper and packed in cases, wood packing, lined with a moisture
and grease-resisting paper; Care is to be taken to ensure that the leather is not
damaged by undue folding or deformation when packed. Belting, however, may
be packed in rolls, and covered with grease resisting paper. Chamois skins may
also be packed in rolls and protected against moisture and grease.

89 Public Procurement Policy for MSEs- Order 2012 - Refer following circulars:

463
Circular No. Subject / Details
28/2012 and 18/2014 dated 05.10.2012 Implementation of Public Procurement
and 12.11.2014 Policy for MSEs-Order 2012.

03/2014 dated 17.04.2014 Public Procurement Policy for MSEs-


2012
19/2014 dated 12.11.2014 Correction to the Circular No. 18/2014
dated 12.11.2014.

16/2015 dated 24.04.2015 To address where both the schemes


viz. Preference to Domestically
Manufactured Electronic Products
(DMEP) in Government procurement
and PPP-2012 are applicable.

29/2015 dated 17.07.2015 Participation by MSEs in ONGC tenders


and splitting tendered quantity among
bidders in cases where
Govt. policy for purchase preference is
involved.

30/2015 dated 18.07.2015 Splitting tendered quantity among MSE


bidders and Methodology for holding
negotiation in cases involving
purchase preference to eligible bidders.

3/2016 dated 15.01.2016 Facilities/ Benefits under Public


Procurement Policy - Judgement dated
02.11.2015 of Hon'ble High Court of
Delhi, in case of IOCL Vs Bansal
Brothers.

9/2016 dated 10.03.2016 System improvement measures in


execution of contract and Capital Asset
verification.

14/2016 dated 31.03.2016 Splitting tendered quantity among


bidders in cases where Govt. policy for
purchase preference is involved.

53/2016 dated 29.12.2016 Participation by MSEs in ONGC tenders


where Govt. policy for purchase
preference is involved.
09/2017 dated 27.02.2017 Benefit to MSEs under Public
Procurement Policy.
18/2017 dated 15.05.2017 Public Procurement Policy for MSEs-
2012
22/2017 dated 08.06.2017 Review of Negative List of services for
which provisions for MSEs are not
applicable

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44/2017 dated 20.09.2017 Collection of data from Micro and Small
Enterprise (MSE) sub-contractors and
entry in ICE system.
47/2017 dated 24.10.2017 Allowing Preference to MSEs when in
competition with firm(s) participating
under Purchase Preference Policy
(linked with local content) (PP-LC)
11/2018 dated 20.03.2018 Allowing applicable benefits to MSEs
39/2018 dated 01.08.2018 Financing of trade receivables of MSEs
through TReDS (Trade Receivable
Discounting System) platform in ONGC
Procurements.
49/2018 dated 10.09.2018 Reporting of procurement of
material/services from MSE sub-
suppliers/ sub-contractors in LSTK
Contracts.
54/2018 dated 04.10.2018 Participation of MSEs in ONGC tenders
on the experience / financial strength of
companies other than MSE.
61/2018 dated 19.11.2018 Enhancement in the target value for
procurement from MSEs
09/2019 dated 11.06.2019 Allowing eligible MSEs to avail benefits
of Public Procurement Policy.

89.1 To verify the genuineness and validity of the certificate(s) issued by


NSIC under its Single Point Registration Scheme, concerned dealing
officer should check from the link "Verification of SPRS Certificate"
existing on NSIC's website www.nsic.co.in wherein by entering GP
registration number of the unit(s). In addition, the verification of SPRS
certificate can also be done by visiting SPRS online website i.e.
www.nsicspronline.com.

89.2 Reports to Govt. relating to Public procurement Policy for MSEs –


Order 2012
In accordance with the provisions of the Public Procurement Policy
certain reports are to be submitted to the Govt, on regular basis.
Suitable provision exists in the system to capture relevant data in
respect of the POs/Contracts placed on MSEs. Dealing officer should
ensure that while creating PO/Contract, the required field in the
system under "Customer Data" tab at header level, is duly updated.

(MM/63/2021 dated 22.03.2021)

90. Specific Provisions related to Startups:


90.1 The definition of “Startup” shall be as per Gazette Notification G.S.R. 127(E)
dated 19.02.2019 (as amended) of Govt of India.

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As per aforesaid Gazette Notification, the Department of Promotion of Industry
and Internal Trade, Ministry of Commerce and Industry has defined Startups as
under:

“An entity shall be considered as a Startup:

(i) Upto a period of ten years from the date of incorporation/ registration, if
it is incorporated as a private limited company (as defined in the Companies Act,
2013) or registered as a partnership firm (registered under section 59 of the
Partnership Act, 1932) or a limited liability partnership (under the Limited Liability
Partnership Act, 2008) in India.

(ii) Turnover of the entity for any of the financial years since incorporation/
registration has not exceeded one hundred crore rupees.

(iii) Entity is working towards innovation, development or improvement of


products or processes or services, or if it is a scalable business model with a high
potential of employment generation or wealth creation.

Provided that an entity formed by splitting up or reconstruction of an existing


business shall not be considered a ‘Startup’.”

MM/93/2023 dated 08.06.2023

90.2 Deleted
MM/104/2023 dated 22.09.2023
90.3For availing exemption from furnishing EMD/Bid Security, for seeking
Development Order and relaxation from Prior Experience Criteria (as detailed as
Para 90.4 below), Start-ups are required to submit the following documents:
(i) Registration Certificate issued by Department for Promotion of Industry
and Internal Trade (DPIIT),earlier known as Department of Industrial Policy and
Promotion (DIPP), Ministry of Commerce, certified by Start-up Director/Partner.
[The certificate shall be validated by dealing officer through Startup India portal,
of GOI (https://www.startupindia.gov.in).]

A declaration from the Directors/Partner of the start-up stating that bid is


submitted by Start-up as Manufacturer of the quoted item (in case of
procurement of Goods)/ Provider of quoted services (in case of procurement of
services) and not as a trader/dealer/distributor.

90.4 In case Start-up does not meet the Experience Criteria as per BEC, but they
have successfully executed a Purchase Order placed by
ONGC/OIL/IOCL/HPCL/ BPCL/GAIL and the material supplied has been used
in field satisfactorily, then such Start-up bidders will be considered as proven
source for that material. Such Start-up bidder will be considered meeting the
466
experience criteria stipulated in BEC akin to bidder having successfully executed
Development Order. (However, this relaxation will not be applicable for cases as
detailed under para 90.5 below). Otherwise, Start-up can submit their proposal
separately, and not against the instant tender requirement, for Development
Order to INDEG Cell, ONGC about its product/services along with the
documents as mentioned at para 90.3. Development order procedure as per
Para 17.2 of IMM Manual shall be followed in this regard.

Further, in case start-up wants to offer their product/service even though ONGC
has not floated any tender for the same, but the material/service is being
regularly required by ONGC, Start-ups can submit their proposal requesting for
Development Order, for a particular item or Services to INDEG Cell. After
examining the proposal of the Start-up, by following the similar process as per
development order procedure, development order may be awarded.
For this purpose, link will be provided in ONGC tender website, regarding
‘relaxations available to Start-ups’.
90.5 Start-ups shall be considered as established source for supply of such
items/providing such services, for which they have successfully executed development
order and they will not be required to submit documents for satisfying experience
criteria as per BEC, except for following cases:

(i) LSTK Contracts


(ii) Tenders wherein QCBS/LCS shall be adopted as per policy guidelines.
(iii) Items/services falling under the category related to public safety, health, critical
security operations and equipment etc. (with adequate justification from Indenting
section duly approved by sanctioning authority (L-1 Level executive shall have full
powers in this regard)).
(iv) Service contracts in connection with offshore operations.
For the above cases, Start-up, even after successful execution of development
order, shall be required to meet experience requirement as stipulated in tender in
full and no relaxation from ‘Prior experience Criteria’ will be provided .

90.6 In consultation with work centers, INDEG will publish, the list of items/services
(except LSTK contracts) on ONGC tender website “www.tenders.ongc.co.in”
from time to time for inviting EOIs from Start-ups. Start-ups will submit their
detailed proposal for consideration of ONGC for placement of development
order. Efforts will be made so that there will be time gap between development
of Start-up through EOIs and intivation of regular tender for the item to allow
Start-ups to participate.
Development order procedure as per Para 17.2 of IMM Manual shall be followed
in this regard.

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