IntegratedMMManual_27092022
IntegratedMMManual_27092022
IntegratedMMManual_27092022
2015
Integrated Materials
Management Manual
NEW DELHI
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
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
3
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
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
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
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
7
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 ...................................................................
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
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
9
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
10
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
11
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
12
Warehouse Management
13
35 Introduction 375
35.1 Introduction……………………………………………………………...251
35.2 Inventory Management Team Responsibilities……………………...251
35.3 Codification………………………………………………………………251
35.4 Insurance Items…………………………………………………………252
14
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
15
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.
1.2.1 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.
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.
Indicative List of items that would fall under LSTK NTA of OGEP is enclosed at
Appendix-A below.
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)
20
(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
21
Sl. Item Name Nodal Tech
No. Agency
17. Technical
Kelly all types Services
Technical
18. Stabilizers Services
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
106. Production
Water Injection Pump of ≥ 100 HP
Services
27
Sl. Item Name Nodal Tech
No. Agency
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
124. Production
Boiler Feed Pumps
Services
125. Production
Vaporizer Pumps
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
135. Production
PSVs for line size ≥ 2".
Services
30
Sl. Item Name Nodal Tech
No. Agency
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
32
Sl. Item Name Nodal Tech
No. Agency
33
Sl. No. Item Name Nodal Tech Agency
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)
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
37
Procurement Segment: Rate Contract, Empanelment
Procurement Group: Central Civil Works & Onshore LSTK Procurement Group
Nodal Tech Agency: Corporate Infrastructure Group (Office of Chief Infrastructure),
OGEP
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
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.
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.
1.7.3 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.
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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).
1.7.7 A holistic review of the entire manual shall take place every 5 years.
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
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".
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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.
1.8.4.1 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
1.8.5.1 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.
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.
1.9.1.3 Hiring of Vessels, Charter Hire of Rigs, Hiring of Services (Facility Management),
Hiring of Services (Consultancy) to be used for respective types of procurement.
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1.9.1.4 Tender Document for Civil to be used for Civil/Electrical and other related
works
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:
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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
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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
2.1.3 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.
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.
2.2.6 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.
2.4.1 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.
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
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.
a. Understand the end to end supply chain of the defined good or service
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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.
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
d. Guide vendor performance appraisal along with the user based on the
defined guidelines for performance appraisal
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4 Cost Estimation
4.1.1 Cost estimation will be done after receipt of final forecast from the user
department by (depending on applicability)
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.
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
v. Waste
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vi. Setup costs
viii. Overheads
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):
d. Should costing Model & Estimation prepared on the basis of should costing
shall be approved by Sanctioning Authority after vetting by finance.
b. A detailed document with break down structure and methods and source
of cost estimation for each structure should be maintained for future
reference
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.
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b. While collecting budgetary quotes etc., no commitments and assurances
will be held out to prospective vendors / suppliers / contractors.
i. Physical copy
ii. Email
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.
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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
In case future forecasts are not available, the average of the last 2 years
of the indices may be used for future forecasts.
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.
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(MM/26/2017 dated 21.06.2017)
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.
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
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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.
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:
c. Through email
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
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.
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.
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.
(a) The time interval is more than 18 months between preparation of cost
estimate & the date of tender opening.
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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.
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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.
5.1.5 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.
5.1.7 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.
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b. The quantity of materials or the duration of the service as applicable
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.
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.
5.4 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.
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.
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b. As Far as possible, scope of work for LSTK should be made on the basis
of Front End Engineering Design (FEED) / functional specifications.
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.
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.
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..
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6 Indenting
c. Cost Estimate
d. Administrative Approval
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.
6.2.1 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.
6.2.6 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.
6.3.1 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.
6.4.1 Equipment / OEM-wise indents for stores & spares: Indents for procurement
of stores and spares will be raised equipment / OEM-wise.
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.
6.6.1 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.
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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.
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.
Sieving of items should be properly done at the indent stage itself so that items
independent in nature are indented separately.
6.7.1 The PR may be created and released on the basis of preliminary scope of work
and cost estimate.
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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.
6.7.5 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.
6.8.1 In case the indent value exceeds the budgeted amount, the additional sanction
must be obtained and conveyed along with the indent.
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.
6.9.1 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.
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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
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.
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
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
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7.1.5 Guidelines around deciding on level of outsourcing in projects:
(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.
(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.
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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.
(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.
(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.
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7.3 Provision to use Empanelment
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:
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8 Mode of tendering
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.
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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.
The following procedures shall be followed for procurement through GeM, as per
process prescribed in General Terms and Conditions available on GeM portal:
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.
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.
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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.
8.1.2.2.3 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.
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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.
However approving authority shall be governed as per BDP/IMMM, in case any approval
is required.
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8.1.2.2.5 Opening of Bids
Clarifications may be sought from the bidders as per provisions on GeM portal.
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.
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.
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.
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 -
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.
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 –
8.1.13 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.
8.2.2 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.
8.2.4 Invitation of open tenders will not be necessary in the following cases:-
iii. Where vendors for the procurement category have been empanelled
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iv. Where procurement is proposed through Government-e-Market (Gem)
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.
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.
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
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:
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.
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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.
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.
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 ;
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.
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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.
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.
Reverse auction for next item/group of the tender shall be initiated after closure
of previous auction.
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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.
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.
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.
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.
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
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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.
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.
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(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.
8.5.1 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.
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c) Reasonability of rates to be explicitly ascertained/confirmed.
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.
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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
8.8.1 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.
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cases, the requirement of obtaining three hand quotations will not be
necessary.
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.
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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.
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.
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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.
8.10.3 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.
8.11.1 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
8.11.2.1 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:
(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.
(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
9.1.1 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.
9.1.5 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
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.
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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.
10.3 Brief for and level 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)
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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:
(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.
(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,
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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.
(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
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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.
10.5.2 Any parallel physical files and approvals thereof will not be considered valid and
should not be maintained.
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
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should be sent to one level higher authority than the original CPA for acceptance.
However, concerned L-1 shall have full and final powers.
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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.
The format for ‘Summary Matrix for MCoDP/CoDP agenda’ has been issued
vide PMC circular 16/2022 (as amended).
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.
(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.
(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.
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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.
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.
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
11.1.1.2 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.
In the case of LSTK/EPC tenders, the technical bid package and the
estimates shall be approved by Head Design-OGEP.
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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.
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.
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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.
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.
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(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.
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.
11.1.8 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.
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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.
11.2.1 Evaluation of proposals for capital equipments based on life cycle costs will
consider costs in acquisition, operations and decommissioning.
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:
11.2.7 Operation:
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i. Production cost inclusive of raw materials, labor, utilization
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:
i. Deconstruction
ii. Recycling/Disposal
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.
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.
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11.3 Quality and Cost based selection (QCBS)
*Details of services which falls under the ambit of Facility Management have been
defined as under:
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(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:
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.
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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
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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.
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.
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).
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 %)
(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:
(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
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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:
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 %)]
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.
11.4.1 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.
11.4.4 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.
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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.
11.4.8 The contract shall be awarded to the L-1 bidder based on the price
evaluation of the bids.
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
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.
12.4.1 - Deleted -
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Description of Activity Tenders without Pre- Tenders with pre bid
bid conference conference
Note:
128
a. Limited tenders upto Rs.10 lakhs – 60 days
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.
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.
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.
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.
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.
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b. Where bid evaluation is done by outside agency - Five Copies
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.
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
12.10 Sale of bidding documents to firms with whom business has been banned
/ suspended
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12.11 Tender fee
12.11.2 – Deleted -
12.11.3 – Deleted -
12.11.4 – Deleted –
12.13 – Deleted -
12.14 – Deleted -
12.15 – Deleted -
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.
Total No. of
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b) Samples received from Tender Receiving Officer.
c) Samples received along with offers.
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.
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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:
c. Only those bidders who have submitted queries within prescribed date shall
be allowed to attend PBC.
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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.
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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
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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.
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.
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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.
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.
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12.20 Nomination of tender receiving / opening officer(s)
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.
12.21.2 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:
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:-
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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.
12.22.1 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.
12.22.4 The Tenders / bids will be opened by a team of two officers as per clause
12.21.
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.
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.
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.
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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.
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13 Tender Evaluation
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.
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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
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.
Sl. No. CPA (As per BDP) Level of Representative from CPD-
Finance/Work Centre-Finance
146
Tender value>Rs.25 Lakhs E4
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.
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.
13.3.6 Documents available in public domain shall not be considered for qualification
of bids.
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(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:
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.
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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.
13.4.2 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.
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.
(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).
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.
(iv) Situation: The bidder has taken clear deviation to any of the
terms/specification of the bid document.
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.
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.
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.
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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.
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.
13.4.12 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.
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:
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“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..
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.
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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.
13.6.2. Bid and Bid Bond validity shall not be sought for the bids rejected and duly
approved by CPA.
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
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.
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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.
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.
(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.
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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.
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
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.
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.
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Para deleted (MM/112/2023 dated 30.11.2023)
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.
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.
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.
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(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.
14.2.6 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:
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(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).
(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
14.2.10 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
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.
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
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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.
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.
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.
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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.
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.
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,
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Finance Department and MM Department. All the eligible applicants short-listed
vide Draw of Lots are also required to submit Bid 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
15.1.1 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:-
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.
15.2.1 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.
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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.
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:
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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.
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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
16.1.1 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.
16.3.1 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.
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16.4 Guidelines for officials with personal interest in companies/agencies
participating in the tender
b. Bidder submits the copy of valid Udyam Registration Certificate, as Micro or Small
Enterprise.
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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:
(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.
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<= Rs.10 Lakh Nil
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$.
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 USD 17,312 will be rounded off to Rs. USD 17,300.
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(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.
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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.
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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.
(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.
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.
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(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
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.
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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.
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.
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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.
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.
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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.
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.
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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.
(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.
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.
(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 :
The Contractor / Supplier shall furnish a certificate guaranteeing that the price
at which item / service was provided to ONGC was the best price ¬ higher
than the price charged to other customer under similar terms and conditions.
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.
16.10.2 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.
(iii) Whether reasonability of the price was ascertained for the respective
contract awarded on nomination basis.
16.10.5 The format available at Appendix 8 shall be utilised for reporting purpose.
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.
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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
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:-
(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
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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
16.13.1.5 Further, In the interest of avoiding hardship to the concerned party, 'Project
Authority Certificate' will be sent along with detailed supply order
16.13.2.2 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:
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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.
(i) The Sections responsible for issue / renewal of PELs / MLs should
intimate all concerned indentors as and when the PELs / MLs are issued
/ renewed.
(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.
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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.
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
16.13.4.8 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:
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(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;
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..
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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.
(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.
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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.
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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.
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.
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.
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.
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
17.1.2 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)
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.
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.
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.
Request of indigenous manufacturers for development order for any other item
may also be considered for examination and development order process.
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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.
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.
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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.
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.
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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.
17.2.8. INDEG will also prov ide all technical assistance to vendors, wherever required.
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.
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.
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.
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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.
These empanelled vendors will be utilized subsequently by all the work centers
of ONGC for inviting limited tender for these items/services.
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.
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.
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.
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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.
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.
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.
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.
3. Power of attorney.
4. Integrity Pact
10. Any Certificate such as API, BIS, ISO (if applicable) pertaining to an
items/services having specific validity.
X. Post Contract issues after award of order shall be handled by work centers
placing the order.
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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
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
For eg, if bid validity was incorrect but bidder changes it when
ONGC asks them, their score will be reduced by 1 point.
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Score: Delivery Timeline
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6: 30 - 50% delay (rounded to the nearest day) compared to
milestone timeline
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.
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.
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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:
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due to a reasonable dispute which would attract proceeding in arbitration
or court of law.
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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.
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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
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
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18 Claims and Warranties
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.
18.2.1 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.
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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.
(iii) Consignee
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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.
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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.
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shall have full power) may grant extension of completion period to the
extent of such delay is attributable to ONGC, without imposing liquidated
damages.
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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.
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.
19.2.4 The supplier / contractor provide initial cost estimation (addition / reduction) for
executing the change order.
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.
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.
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the contract value, Expenditure Sanction of the Competent Authority
shall be obtained as per BDP
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.
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.
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19.3 Variation in Quantity
b. – Deleted -
d. If rates for the items are not available, no quantity variation will be allowed
and the change order procedure will be followed.
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.
19.4.1 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.
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
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:
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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.
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.
20.4.4 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.
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.
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.
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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.
(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.
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21 Inspection Process
21.1 Inspection
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.
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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.
(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
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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.
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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).
The quality assurance department will not carry out inspection for the following
items
b. P.O.L.
f. Printed stationery.
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.
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(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:
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.
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.
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.
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.
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.
21.3.1 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)
21.4.1 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.
(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.
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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.
(iv) Payment and Delivery and Tracking process will be the same as indicated in
the section on payment procedure
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.
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21.7 Sampling, bonding, testing, de-bonding and dispatch of bulk chemicals
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.
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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.
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
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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.
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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)
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.
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.
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8. No Chemist for sampling and bonding in these cases will be deputed at firm’s
premises.
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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.
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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).
21.10.1 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.
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21.11 Sub-standard Delivery of Items and Services
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.
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.
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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.
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.
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22 Payment Procedure
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.
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.
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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.
22.2.6 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.
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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.
“Certified that all the documents as required in the contract has been received
and found to be in order for processing the payment”
(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.
22.3.1 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.
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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.
22.5.2 Invoices for Services, LSTK Contracts and Invoice for cases relating to NPO
/ “Direct FI entry
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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.
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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.
A. Procurement of Goods
A.1 Applicable for cases involving payment through Bank against proof of
dispatch & satisfactory inspection
(LSC)
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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.
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6 (Applicable in case of High Sea Sales) ---
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.
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.
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* 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) (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.
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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
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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...............”
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15 Following certificate: Purchase Order Placing Authority
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.
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)
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)
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.
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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
(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).
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)
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:
*{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. }
(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.
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.
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.
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).
22.8.2 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).
274
Competent Authority for according approval as post contract issue, based on
recommendation of Procurement Evaluation Committee.
275
23 Contract closing
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.
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.
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.
277
24 Other Issues
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.
24.3.1 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.
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.
24.5.1 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.
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:
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.
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):
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):
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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.
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.
282
of business is outside India save with the prior permission of the
Central Government”
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.
24.6.3 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.
24.7.1 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
24.7.5 All the personnel handling hazardous chemicals will be given First aid training.
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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.
24.9.1 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
24.10.1 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.
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.
286
25 Pre-tendering and tendering process for 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:
(Signature)
Name and Designation……………..
Date:
Place:
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(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.
25.2.5 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.
25.2.7 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.
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:
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.
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. .
25.3.1 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).
25.4.1 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
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
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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.
291
26 Shifted to 21.6 (MM/47/2019 dated 31.01.2019)
292
27 e-procurement
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.
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.
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.
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)
(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.
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.
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.
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
28.2.2 Quantity for which payment shall be made to the supplier should not
exceed the ordered quantity.
298
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.
28.4.1 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.
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
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.
299
29 Procurement of items on High sea sales basis
29.1 Introduction
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.
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
300
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.
301
c. Negotiable copy of the Bill of Lading/ Air Way Bill duly endorsed in the
name of ONGC.
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.
302
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:
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
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
303
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
30.4.1 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
30.5.1 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
30.6.1 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
304
30.7 Period of Rate Contract
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.
30.9 Clarifications
30.10 Negotiation
305
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:
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
306
31 Business Development and Joint Venture opportunities
31.1 Introduction
31.1.3 Any changes/deviations in this procedure as may be required will be done with
approval of Executive committee.
307
(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.
31.2.6 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.
308
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.
31.5.2 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.
310
31.5.9 Nomination of Tender Receiving/Opening Officer(s):Process as per
12.21 of this manual shall be followed
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.
a) Operational urgency
311
31.9 Clauses in tenders (RFP) / engagement agreement
31.10.1 EMD/SD shall not be obtained as the tenders are being invited from
empanelled agencies/nominated agencies.
312
31.12 Correspondence with bidders by indentors
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.
313
31.20 Negotiations
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.
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.
315
32 Procedure for charter hiring of Aircrafts/Helicopters for movement of VVIPs
or to meet contingency/emergency
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.
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.
317
33 EPCG Cell
i. To obtain the year wise expected export revenue from Marketing Group
Export Cell and work out the potential benefit under the EPCG Scheme.
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.
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.
319
34 Powers for various activities
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) 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.
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.
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
Note: Above powers ((i) & (ii) above) appearing as per BDP (powers for
Logistics) can be exercised by MM section also
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).
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)
322
34.6 Signing of POs / contracts
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
34.8.1 The purchase powers are exercisable only if the purchase is effected
subject to the observance of normal procedure for open / limited tenders.
34.9.1 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
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.
The maximum time limits for various activities under different categories of
tenders are prescribed in the schedules, as per details below:
324
Annexure-A
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.
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.
(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
Non MCoDP
MCoDP Cases
Cases
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)
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)
329
Sl. No. Activity Time schedule in number of
days
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.
(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”
PROJECT/OFFICE
PART –A
PART – B
TECHNICAL REPORT
(TO BE FILLED IN BY AUTO ENGR./INCHARGE OF REPAIRS)
332
14. Crane portion
(applicable for cranes)
Dy. SE(Auto)/EE(Auto)
333
Appendix 1 High Sea Sales Agreement
Subject:
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.
2. Description of Goods.
3. Quantity.
6. Bill of lading No. and date / Master AWB No. / House AWB No. and date.
334
11. Country of origin
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.
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.
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.
335
4. All other Taxes and applicable duties shall be as per PO
No._______dated_____ (ONGC order No. and date).
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.
BUYER : ONGC
Witness. Witness.
336
Appendix 2
- Deleted -
337
Appendix 3 TERMS & CONDITIONS OF TENDER FORPURCHASES UPTO
Rs.10.00 LAKHS
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’:-
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 :
(PURCHASE OFFICER)
Copy to:-
1. Consignee
2. Finance and Accounts Officer - 2 copies.
3. Indentor.
4. Inspection Deptt.
5. Office copy.
339
ANNEXURE ‘A’
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.
1.4 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.
4.1 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
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.
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
8.1 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:
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.
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.
(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:
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.
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:
(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
No. Date
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:
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
No. Date
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
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)
348
Appendix 7 Details of contracts executed/completed
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
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
349
Appendix 8 Details of nomination cases
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:
Maximum
experience 20
years)
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)
353
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
10. Petronas
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)
355
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
9.Statoil
10. Petronas
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
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
359
Appendix 10 Details and Documents to be submitted for evaluation of Bits under
Procurement on Consignment basis
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
(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
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.
Designation
363
Appendix 13 Proforma For Invocation Of Bank Guarantee
Date:
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.(***)
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.
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.
364
Appendix-14
- Deleted -
365
(MM/04/2015 dated 28.04.2015)
Appendix - 15
Format for preparation of CS
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.
Note: Any reason for accepting other than lowest tender and any remarks are to be stated here.
366
IMPORTANT TERMS AND CONDITIONS OF TENDER NO.
Terms of delivery
Delivery period
Terms of payment
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.
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.
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.
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
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
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.
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):
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.
5 The draft contract is ready for signing, The contract shall be signed within 15 days of receipt
of acceptable PBG.
372
Circular No. 24/2018 dated 25.05.2018
Appendix PBC
3. That we are deputing our representative (as per following details) who
is/are competent to present our queries in Pre-Bid Conference.
Designation:_____________________________________________
Mobile No.:______________________________________________
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
35.2 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:
35.2.2 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.
35.3 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.
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
36.1.1 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.
36.2.1 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
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.
36.3.5 In case of stores received after trans-shipment, the original wagon No. will be
entered in the Remark column in the ICE system.
36.3.7 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.
36.4.1 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.
378
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.
36.5.1 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.
36.5.4 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.
379
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.
36.6.1 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
36.7.1 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.
36.8.1 When any materials are sent in open wagon, suitable escort is to be arranged
to accompany the wagons, to avoid pilferage enroute.
380
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.
381
37 Transport and Shipping
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.
37.2.1 T&S section requires following document for clearance of imported material:
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:
2. Ocean Freight
382
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.
37.3.1 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:
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:
383
a. Date of arrival of consignment at seaport/airport
iii. Defective documents viz invoice not in accordance with supply order;
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.
384
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.
385
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
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.
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
386
order. The Receipt section shall escalate the issue to higher levels to
ensure timely creation of GRV.
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.
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.
b. The stock holder will receive material from the Receipt Section for the
material identified for storage into locations under his responsibility.
388
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. 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.
389
c. The indent will have the CPF number of employee assigned to receive the
material at site.
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.
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.
d. Packing of Materials
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.
xi. The Clearing and Forwarding/Logistics Section will also check the
address and the markings on the packages.
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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. 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.
b. The stock holder will issue the material against the request in the ICE
system and the item will be charged off from inventory.
38.5.1 Introduction
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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.
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.
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
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.
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.
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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.
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39 Stock Verification
39.1 Introduction
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.
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 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.
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will be verified by SV team at main warehouse and self verified by user
group at site.
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.
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.
397
e. Upon settlement of discrepancy or write off being approved, the same will
be updated in the ICE system for closing the discrepancy.
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.
398
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.
399
40 Disposal Management
40.1 Introduction
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
d. Vehicles.
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
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 (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.
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:
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.
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.
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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:
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.
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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.
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.
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.
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.
404
vii. Repair history.
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.
405
c. The approved life of Transport vehicles/equipment is as under
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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
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.
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.
e. Items meant for disposal should be kept in isolated place and should be
identified separately.
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.
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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.
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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.
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
410
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.
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..
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).
411
considering which option is more feasible and convenient for quick disposal
and advantageous to the Corporation
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.
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.
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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.
e. Along with the tender documents the purchaser of hazardous waste are
required to submit following clearing certificates:
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.
40.4.1 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.
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.
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.
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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:-
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.
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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:-
j. Acceptance of offers
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.
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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.
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.
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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.
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40.4.4 E-Auction Process (currently being conducted through 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:
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.
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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.
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’.
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.
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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
(a) The bits for disposal will be kept duly cleaned, oiled, greased and arranged
in suitable lots as per sizes.
(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
(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:
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.
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.
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.
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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
(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
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.
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.
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.
41.1.5 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.
41.2.1 Introduction
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
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
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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.
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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.
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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
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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
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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.
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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
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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.
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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,
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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).
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
464
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.
465
As per aforesaid Gazette Notification, the Department of Promotion of Industry
and Internal Trade, Ministry of Commerce and Industry has defined Startups as
under:
(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.
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).]
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:
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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