GAIL (INDIA) LIMITED (A Government of India Undertaking) (A Maharatna Company) GAIL Complex, Sanwer Road, Nana Kheda UJJAIN - (M.

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1 (A Maharatna Company) GAIL Complex, Sanwer Road, Nana Kheda UJJAIN - (M.P) TENDER DOCUMENT TENDER NO. GAIL/KCS/C&P/14/94/ /Pipeline DT NAME OF WORK:- Hiring of Services for Installation of Pipeline Markers BID DUE DATE &TIME : OPENING OF BIDS ON : AT HRS AT HRS ( in case of Two bid system tender, un priced bid shall be opened) VALIDITY OF OFFER UPTO : DATE OF PRE BID CONFERENCE: AT HRS AT GAIL COMPLEX, NANAKHERA, SANWER ROAD, UJJAIN,M.P. EMD AMOUNT: Rs (Rupees Thirty Five Thousand only) (in form of BG/DD in favor of GAIL (India) Ltd payable at Ujjain) Place of Submitting of Bids:- Sr. Manager(C&P), GAIIL (India)) Limited GAIL COMPLEX, Nanakhera, Sanwer Road, Ujjain (M.P.) Ph No ,50 id: gs01516@gail.co.in Page: 1 of 57

2 IMPORTANT INSTRUCTIONS PLEASE NOTE THAT THIS "REQUEST FOR QUOTATION [RFQ]" IS ON "ZERO-DEVIATION" BASIS. GAIL WILL ACCEPT OFFERS BASED ON TERMS AND CONDITIONS OF THIS "REQUEST FOR QUOTATION [RFQ] & TENDER DOCUMENT" ONLY. DEVIATION TO TERMS AND CONDITIONS OF "REQUEST FOR QUOTATION [RFQ] & TENDER DOCUMENT" MAY LEAD TO REJECTION OF OFFER."INCOMPLETE BIDS SHALL NOT BE CONSIDERED" PRIOR TO DETAILED EVALUATION, PURSUANT TO "BID EVALUATION AND REJECTION CRITERIA", GAIL WILL DETERMINE THE SUBSTANTIAL RESPONSIVENESS OF EACH BID TO THE "RFQ & TENDER DOCUMENT". FOR THE PURPOSE OF THIS, A SUBSTANTIALLY RESPONSIVE BID IS ONE WHICH CONFORMS TO ALL THE TERMS AND CONDITIONS OF THE BIDDING DOCUMENTS WITHOUT 'DEVIATIONS' OR 'RESERVATIONS / EXCEPTIONS'. GAIL'S DETERMINATION OF A BID'S RESPONSIVENESS IS BASED ON THE CONTENT OF THE BID ITSELF, WITHOUT RECOURSE TO EXTRINSIC EVIDENCE. 'TECHNICAL' AND/OR 'COMMERCIAL' QUERY(S), IF REQUIRED, MAY BE RAISED ON THE BIDDER(S) THE DECISION FOR WHICH WILL BE SOLELY BASED ON CIRCUMSPECTION BY ''. HOWEVER, ISSUANCE OF REQUEST FOR SUCH 'CLARIFICATIONS' SHALL NOT BE RESORTED TO MORE THAN 'ONCE'. THE 'RESPONSE(S)' TO THE SAME SHALL BE IN WRITING, AND NO CHANGE IN THE 'PRICE(S)' OR 'SUBSTANCE' OF THE BIDS SHALL BE SOUGHT, OFFERED OR PERMITTED. THE SUBSTANCE OF THE BID INCLUDES BUT NOT LIMITED TO PRICES, COMPLETION, SCOPE, TECHNICAL SPECIFICATIONS, ETC. BIDDERS ARE REQUESTED TO NOT TO TAKE ANY 'DEVIATION/EXCEPTION' TO THE TERMS AND CONDITIONS LAID DOWN IN THIS "RFQ & TENDER DOCUMENT", AND SUBMIT ALL REQUISITE DOCUMENTS AS MENTIONED IN THIS "RFQ & TENDER DOCUMENT", FAILING WHICH YOUR OFFER WILL BE LIABLE FOR REJECTION. Page: 2 of 57

3 TABLE OF CONTENTS BID ELIGIBILITY/EVALUATION CRITERIA [BEC] SECTION-I AND EVALUATION AND COMPARISON CRITERIA SECTION-II INSTRUCTIONS TO BIDDERS [ITB] SECTION-III GENERAL CONDITIONS OF CONTRACT [GCC] -ENCLOSED SECTION-IV SPECIAL CONDITIONS OF CONTRACT [SCC] & SCOPE OF WORK SECTION-V HEALTH, SAFETY AND ENVIRONMENT [HSE] SPECIFICATIONS SECTION-VI FORMS AND FORMATS. Page: 3 of 57

4 SECTION-I BID ELIGIBILITY / EVALUATION CRITERIA [BEC] & EVALUATION AND COMPARISON CRITERIA Page: 4 of 57

5 BID ELIGIBILITY/EVALUATION CRITERIA [BEC] (A). TECHNICAL BID ELIGIBILITY CRIATERIA :- The bidder must have 'successfully executed & completed' at least 01 (one) single work order valuing not less than Rs of Marker Installation and associated activities in high pressure hydrocarbon pipelines (or) IRC / ARC of Maintenance works in hydrocarbon industries (or) Pipeline ROU maintenance works in hydrocarbon industries (or) Gas / Oil Pipeline laying activities, work of any Public-Sector undertaking / Government-department/Public limited company /Reputed private-sector Company in the preceding seven [07] years' [from the 'Bid Due Date']: Documentary proof in the form of successfully executed Work Order & its completion certificates duly notarized by Notary Public, must be submitted against the experience. (B). FINANCIAL BID ELIGILIBYT CRITERIA : NOT APPLICABLE. NOTE TO BID ELIGIBILITY/EVALUATION CRITERIA (BEC) (i). Bidders must furnish all relevant certificates/documents/information in support of their credentials to the above evaluation / eligibility criteria along with the offer, failing which their offer shall be summarily rejected. (ii). Bidders not meeting any of the above-mentioned evaluation / eligibility criteria shall be rejected without assigning any reason. EVALUATION & COMPARISON OF BIDS Methodology for evaluation & comparison of bids and award/distribution of job in tender s terms & conditions as mentioned below :- GAIL will evaluate and compare the Bids previously determined to be substantially responsive pursuant to Clause '28' of Instructions to bidders "ITB". Bids shall be evaluated on the basis of total quoted price in the SOR of all the Techno-Commercially Acceptable Bidders shall be evaluated to arrive at the Lowest Offer/Bid including Service Tax on overall basis. Page: 5 of 57

6 SECTION-II INSTRUCTIONS TO BIDDERS [ITB] Page: 6 of 57

7 INDEX A GENERAL 1. SCOPE OF BID 2. ELIGIBLE BIDDERS 3. BIDS FROM CONSORTIUM / JOINT VENTURE 4. ONE BID PER BIDDER 5. COST OF BIDDING 6. SITE-VISIT B BIDDING DOCUMENTS 7. CONTENTS OF BIDDING DOCUMENTS 8. CLARIFICATION OF BIDDING DOCUMENTS 9. AMENDMENT OF BIDDING DOCUMENTS C PREPARATION OF BIDS 10. LANGUAGE OF BID 11. DOCUMENTS COMPRISING THE BID 12. BID PRICES 13. BID CURRENCIES 14. BID VALIDITY 15. EARNEST MONEY / BID SECURITY 16. PRE-TENDERING CONFERENCE 17. FORMAT AND SIGNING OF BID 18. ZERO DEVIATION & REJECTION CRITERIA 19. E-PAYMENTS 20. AGENT/CONSULTANT/REPRESENTATIVE/RETAINER/ASSOCIATE D SUBMISSION OF BIDS 21. SEALING AND MARKING OF BIDS 22. DEADLINE FOR SUBMISSION OF BIDS 23. LATE BIDS 24. MODIFICATION AND WITHDRAWAL OF BIDS E BID OPENING AND EVALUATION 25. BID OPENING 26. PROCESS TO BE CONFIDENTIAL 27. CONTACTING THE EMPLOYER 28. EXAMINATION OF BIDS AND DETERMINATION OF RESPONSIVENESS 29. CORRECTION OF ERRORS 30. CONVERSION TO SINGLE CURRENCY FOR COMPARISON OF BIDS 31. EVALUATION AND COMPARISON OF BIDS 32. PREFERENCE FOR DOMESTIC BIDDERS 33. PURCHASE PREFERENCE 34. COMPENSATION FOR EXTENDED STAY F AWARD OF CONTRACT 35. AWARD 36. EMPLOYER'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL BIDS 37. NOTIFICATION OF AWARD / LETTER OF INTENT [LOI] 38. SIGNING OF AGREEMENT 39. CONTRACT PERFORMANCE SECURITY / SECURITY DEPOSIT 40. CORRUPT OR FRAUDULENT PRACTICES 41. INTEGRITY PACT INSTRUCTIONS TO BIDDERS [ITB] Page: 7 of 57

8 [A] GENERAL 1. SCOPE OF BID 1.1 The Employer, as defined in the "General Conditions of Contract [GCC]", wishes to receive Bids as described in the Tender Document for Hiring of Services for Installation of Pipeline Markers 1.2 Throughout these Bidding Documents, the terms 'Bid' and 'Tender' and their derivatives [Bidder/Tenderer Bid/Tender, Bidding/Tendering, etc.] are synonymous and 'Day' means 'Calendar Day'. 'Singular' also means 'Plural'. 2. ELIGIBLE BIDDERS 2.1 The Bidder shall not be under a declaration of ineligibility by Employer for corrupt or fraudulent practices, as defined in "Instructions to Bidders [ITB]". 2.2 The Bidder is not put on 'Holiday' by GAIL or 'Blacklisted' by any Government Department / Public Sector Enterprise. 3. BIDS FROM "JOINT VENTURE"/"CONSORTIUM" NOT ACCEPTABLE/ NOT APPLICABLE 4. ONE BID PER BIDDER A Firm/Bidder shall submit only 'one [01] Bid' in the same Bidding Process, individually as a Bidder. No Firm can be a sub-contractor while submitting a Bid individually in the same bidding process. A Bidder who submits or participates in more than 'one [01] Bid' will cause all the proposals in which the Bidder has participated to be disqualified. 5. COST OF BIDDING The Bidder shall bear all costs associated with the preparation and submission of the Bid, and GAIL will in no case, be responsible or liable for these costs, regardless of the conduct or outcome of the bidding process. 6. SITE VISIT The Bidder is advised to visit and examine the site of works and its surroundings and obtain for itself on its own responsibility all information that may be necessary for preparing the Bid and entering into a Contract for the required job. The costs of visiting the site shall be borne by the Bidder. [B] BIDDING DOCUMENTS 7. CONTENTS OF BIDDING DOCUMENTS 7.1 The Bidding Documents / Tender Documents are those stated below, and should be read in conjunction with any 'Addendum / Corrigendum' issued in accordance with "ITB: Clause-9": Section-I : Bid Eligibility/Evaluation Criteria [BEC] & Evaluation and Comparison Criteria. Section-II : Instructions to Bidders [ITB] Section-III : General Conditions of Contract [GCC] Section-IV : Special Conditions of Contract [SCC] & Scope of Work Section-V : Heath, Safety and Environment [HSE] Section-VI : Forms and Formats 7.2 The Bidder is expected to examine all instructions, forms, terms & conditions in the Bidding Documents. The "Request for Quotation [RFQ]" together with all its attachments thereto, shall be considered to be read, understood and accepted by the Bidders. Failure to furnish all information required by the Bidding Documents or submission of a Bid not substantially responsive to the Bidding Documents in every respect will be at Bidder's risk and may result in the rejection of his Bid. 8. CLARIFICATION OF BIDDING DOCUMENTS 8.1 A prospective bidder requiring any clarification of the Bidding Documents may notify GAIL in writing or by fax or e- mail at GAIL s mailing address indicated in the Invitation for Bids. GAIL will respond in writing to any request for clarification of the Bidding documents which it receives not later than 10 days prior to the deadline for the submission of bids prescribed by GAIL. Written copies of GAIL s response (including an explanation of the query but without identifying the source of the query) will be uploaded on e-tendering website. Any Clarification or information required by the bidder but same not received by the Purchaser, ten days prior to the bid due date, the same is liable to be considered as no clarification/information required. 9. AMENDMENT OF BIDDING DOCUMENTS Page: 8 of 57

9 9.1 At any time prior to the 'Bid Due Date', GAIL may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective Bidder, modify the Bidding Documents. 9.2 The amendment(s) will be notified in writing or by fax or to all prospective Bidders, at the address, fax no(s)., ID(s) provided by the Bidder, who have received the Bidding Documents and will be binding on them. 9.3 In order to afford prospective Bidders, reasonable time in which to take the amendment(s) into account in preparing their Bids, GAIL may, at its discretion, extend the 'Bid Due Date'. [C] PREPARATION OF BIDS 10. LANGUAGE OF BID: ENGLISH / HINDI 11. DOCUMENTS COMPRISING THE BID 11.1 The Bid prepared by the Bidder shall comprise the following components: 11.2 [PART-I] Techno-Commercial / Un-priced Bid" PART-I: "Techno-commercial / Un-priced Bid" [to be furnished in 'original' only] shall contain the following: (a) 'Covering Letter' on Bidder's 'Letterhead' (b) 'Bidder's General Information', as per 'Format F-1' (c) 'Bid Form', as per 'Format F-2' (d) Copies of documents, as required in 'Form F-3' (e) Annual turnover as required in Format F-3A (f) Financial Situation as required in Format F-3B (g) A confirmation that prices in requisite formats, strictly complying with the requirement, with prices blanked out, are in 'Envelope No. - I', i.e. "Un-Priced Bid". (h) 'Documents' establishing the eligibility/evaluation and conformity to the Bid Documents of all goods and services, which the Bidder proposes to supply under the Award is to be submitted. (i) One copy of 'Bid Security' in accordance with "RFQ" & "ITB: Clause-15" to be furnished either in the form of "Cashier's / Banker's Cheque" / "Demand Draft" [in favor of GAIL (India) Limited, payable at State Bank of India, Ujjain / "Bank Guarantee", as per 'Format F-4'. (j) 'Letter of Authority', as per 'Format F-5' (k) 'No Deviation Confirmation', as per 'Format F-6' (l) 'Bidder's Declaration', in 'Format F-6A' (m) 'Certificate' from Bidder, as per 'Format F-7' (n) Format for Bank Guarantee for contract performance security / security deposit as per 'Format F-8' (o) 'Terms and Conditions', as per 'Format F-9' (p) 'Regret Letter' [if applicable], as per 'Format F-10' (q) Proforma for confirmation on applicability of Micro, Small and Medium Enterprises Development Act, 2006 [MSMED Act 2006) - Format F-11 (r) Confirmation on applicability of Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act 2006) Format - 11 (A) (s) Format for e-banking Format-F-12, Format-1 of F-12 & Format-2 of F-12 (t) Format for offer/application- Format-F-13 (u) Integrity Pact, as per Format F-14 (v) Documents substantiating "Bid Evaluation Criteria [BEC]" (w) Any other information/details required as per Bid Document Note: All pages of the Bid must be signed and stamped by the "authorized signatory" of the Bidder The PART-I Techno-commercial /Un-priced Bid comprising all the above documents along with copy of EMD/Bid Bond should be uploaded in the private area earmarked (Tender Document) in the C-folder PART-II PRICE SCHEDULE / PRICE BID The Prices are to be submitted online strictly as per the Price Schedule. GAIL shall not be responsible for any failure on the part of the bidder to follow the instructions PART-III: EMD / BID SECURITY: Bidder are required to submit the EMD amount Rs (Rupees Thirty Five Thousand only) in form of DD/Bank Guarantee/Bankers Cheques in original in the prescribed formats and in the manner prescribed in the tender at the time of bid submission in sealed envelope to [ Sr Manager C&P), GAIL (India) Limited, GAIL Complex, Nanakhera, Sanwer Road, Ujjain, M.P. (India), Pin : Tel: /50, Fax : BID PRICES Page: 9 of 57

10 12.1 Unless stated otherwise in the Bidding Documents, the Contract shall be for the whole works as described in Bidding Documents, based on the rates and prices submitted by the Bidder and accepted by the Employer Prices must be filled in format for "Schedule of Rates [SOR]" enclosed as part of "RFQ". If quoted in separate typed sheets and any variation in item description, unit or quantity is noticed; the Bid is liable to be rejected Bidder shall quote for all the items of "SOR" after careful analysis of cost involved for the performance of the completed item considering all parts of the Bidding Document. In case any activity though specifically not covered in description of item under "SOR" but is required to complete the works as per Specifications, Scope of Work / Service, Standards, "GCC", "SCC" or any other part of Bidding Document, the prices quoted shall deemed to be inclusive of cost incurred for such activity All duties, taxes [except 'Service Tax', and Cess thereon] and other levies [if any] payable by the Contractor under the Contract, or for any other cause, shall be included in the rates / prices and the total bid-price submitted by the Bidder Prices quoted by the Bidder, shall remain firm and fixed and valid until completion of the Contract and will not be subject to variation on any account The Bidder shall quote the prices both in 'figures' as well as in 'words'. There should not be any discrepancies between the price indicated in 'figures' and the price indicated in 'words' Alternative Bids shall not be considered Discount, if any, must be included in "SOR" only. Conditional discount, if offered, shall not be considered for evaluation SERVICE TAX Quoted prices should be inclusive of all taxes and duties, except Service Tax. Please note that the responsibility of payment of Service Tax lies with the Service Provider only. In case Service Tax is applicable for the Tendered Work, Contractor shall claim the Service Tax indicating rate of abatement/deduction allowed as per "Service Tax Act" from the 1 st Invoice itself. Contractor providing taxable service shall issue an Invoice, a Bill or as the case may be, a Challan which is signed, serially numbered, and shall contain the following: (a) Name, Address & Registration No. of such Person/Contractor (b) Name & Address of the Person/Contractor receiving Taxable Service (c) Description, Classification & Value of Taxable Service provided (d) Service Tax Amount Payments to Service Provider for claiming Service Tax amount will be made provided the above formalities are fulfilled. In case of statutory variation in Service Tax during currency of the Contract, the Contractor shall submit a copy of the 'Government Notification' to evidence the rate as applicable on the date of submission of Bid and on the date of revision. Claim for payment of Service Tax / statutory variation in Service Tax, should be raised within two [02] months from the date of issue of 'Government Notification' for payment of differential Service Tax, otherwise claim in respect of above shall not be entertained for payment of arrears. 13. BID CURRENCIES: The Bid should be submitted in "INDIAN RUPEES [INR]" only. 14. BID VALIDITY 14.1 Bids shall be kept valid for 'Three [03] months' from the final 'Bid Due Date'. A Bid valid for a shorter period may be rejected by GAIL as 'non-responsive' In exceptional circumstances, prior to expiry of the original 'Bid Validity Period', the Employer may request that the Bidders extend the 'Period of Bid Validity' for a specified additional period. The request and the responses thereto shall be made in writing or by fax/ . A Bidder may refuse the request without forfeiture of his 'Bid Security'. A Bidder agreeing to the request will not be required or permitted to modify his Bid, but will be required to extend the validity of its 'Bid Security' for the period of the extension and in accordance with "ITB: Clause-15" in all respects. Page: 10 of 57

11 15. EARNEST MONEY/BID SECURITY 15.1 Bids must be accompanied with 'Earnest Money / Bid Security' as per Invitation for Bids (IFB), in the form of 'Demand Draft' in favor of GAIL (India) Limited, payable at 'State Bank of India Ujjain or 'Banker's Cheque' or 'Bank Guarantee'. Bidders shall ensure that 'Earnest Money / Bid Security', having a validity of at least 'six [06] Months' from the final 'bid due date', in the format (s) available in the bid document. Bid not accompanied with 'Earnest Money / Bid Security', or 'Earnest Money / Bid Security' not in requisite form, shall be summarily rejected The 'Bid Security' is required to protect GAIL against the risk of Bidder's conduct, which would warrant the 'Bid Security's' forfeiture, pursuant to "ITB: Clause-15.7" GAIL shall not be liable to pay any Bank charges, commission or interest on the amount of 'Bid Security'. In case 'Bid Security' is in the form of a 'Bank Guarantee', the same shall be from any Indian scheduled Bank or a branch of an International Bank situated in India and registered with 'Reserve Bank of India' as Scheduled Foreign Bank. However, in case of 'Bank Guarantee' from Banks other than the Nationalized Indian Banks, the Bank must be commercial Bank having net worth in excess of Rs. 100 Crores [Rupees One Hundred Crores] and a declaration to this effect should be made by such commercial Bank either in the 'Bank Guarantee' itself or separately on its letterhead. 'Earnest Money / Bid Security' shall be valid for 'two [02] months' beyond the 'Bid Validity Period' 15.4 Any Bid not secured in accordance with "ITB: Clause-15.1 & Clause-15.3" may be rejected by GAIL as nonresponsive Unsuccessful Bidder's 'Earnest Money / Bid Security' will be discharged / returned as promptly as possible, but not later than 'thirty [30] days' after expiry of the 'Period of Bid Validity' prescribed by GAIL, pursuant to "ITB: Clause-14" The successful Bidder's 'Bid Security' will be discharged upon the Bidder's accepting the 'Award' and signing the 'Agreement' and furnishing the 'Contract Performance Security / Security Deposit' The 'Bid Security' may be forfeited: (a) If a Bidder withdraws his Bid during the 'Period of Bid Validity' (b) In the case of a successful Bidder, if the Bidder fails: (i) To accept the "Notification of Award" / "Letter of Intent [LOI]", or (ii) To furnish "Contract Performance Security / Security Deposit", in accordance with "ITB: Clause-39" (iii) To accept 'arithmetical corrections' 15.8 Bid Security should be in favor of GAIL (India) Limited and addressed to GAIL. In case Bid Security is in the form of 'Bank Guarantee', the same must indicate the Bid Document No. and the Work for which the Bidder is quoting. This is essential to have proper correlation at a later date. The 'Bid Security' should be in the form provided at 'Format F-4' "Central Public Sector Undertakings of Government of India" and "Firms Registered with NSIC" are exempted from furnishing Bid Security, provided they are registered for the quoted items upto the monetary limit, they intend to quote and subject to their enclosing with their Bid a copy of latest and current 'Registration Certificate'. 16. PRE-BID CONFERENCE [ AT HRS As per "RFQ"; Venue: Administrative Building, GAIL, Nanakhera Ujjain ] 16.1 The Bidder(s) or his designated representative are invited to attend a "Pre-tendering Conference [PTC]" / "Pre-Bid Conference [PBC]" which will be held at GAIL (India) Limited [P.O. GAIL Complex, Nanakhera, Distt. Ujjain, MP ] 16.2 Purpose of the meeting will be to clarify issues & to answer questions on any matter that may be raised at that stage Text of the questions raised and the responses given, together with any responses prepared after the meeting, will be transmitted without delay [without identifying the sources of the question] to all the prospective Bidders, and shall also be uploaded on GAIL website against the Tender. Any modification of the Bidding Documents listed in "ITB: Clause-7.1", that may become necessary as a result of the 'PTC'/ PBC shall be made by the Employer exclusively through the issue of an Addendum / Corrigendum pursuant to "ITB: Clause-9", and not through the minutes of the 'PTC'/ PBC Non-attendance of the 'PTC'/ PBC will not be a cause for disqualification of a Bidder. Page: 11 of 57

12 17. FORMAT AND SIGNING OF BID The bidder shall prepare the document comprising the bid as per clause 11.0 of ITB 17.1 The bid shall be typed or written in indelible ink (in the case of copies, photocopies are also acceptable) and shall be signed by the person or persons duly authorized to sign on behalf of the bidder. The name and position held by each person signing, must be typed or printed below the signature. All pages of the bid, except any catalogues/ literatures shall be signed The bid shall contain no alterations, omissions or additions, unless such corrections are initialed by the person or persons signing the bid. 18. ZERO DEVIATION AND REJECTION CRITERIA 18.1 ZERO DEVIATION: Deviation to terms and conditions of "RFQ" may lead to rejection of bid. Please note this "RFQ" is on "Zero Deviation" basis. GAIL will accept bids based on terms & conditions of "RFQ" only. Bidder may note GAIL will determine the substantial responsiveness of each bid to the Bidding Documents. For purpose of this, a substantially responsive bid is one which conforms to all terms and conditions of the Bidding Documents without deviations or reservations. GAIL's determination of a bid's responsiveness is based on the content of the bid itself without recourse to extrinsic evidence. Technical and/or commercial query(s), if required, may be raised on the bidder(s) the decision for which will be solely based on circumspection by GAIL (India) limited. However, issuance of request for such clarifications shall not be resorted to more than once. The response(s) to the same shall be in writing, and no change in the price(s) or substance of the bids shall be sought, offered or permitted. The substance of the bid includes but not limited to prices, completion, scope, technical specifications, etc. Bidders are requested to not to take any deviation/exception to the terms and conditions laid down in this "RFQ/Tender Document", and submit all requisite documents as mentioned in this "RFQ/Tender Document", failing which your offer will be liable for rejection REJECTION CRITERIA: Deviation to the following clauses of "RFQ" shall lead to rejection of Bid: (a) Firm Price (b) Earnest Money / Bid Security (c) Specifications & Scope of Work (d) Special Conditions of Contract [SCC] (e) General Conditions of Contract [GCC] (f) Schedule of Rates / Price Schedule / Price Basis (g) Duration / Period of Contract (h) Period of Validity of Bid (i) Price Reduction Schedule (j) Contract Performance Security / Security Deposit (k) Guarantee / Defect Liability Period (l) Arbitration / Jurisdiction of Court (m) Force Majeures (n) Documentary Evidence to Substantiate "Bid Evaluation Criteria [BEC]" (o) Bidder is requested to fill 'Format: F-9' and submit alongwith the Bid (p) Further, it is once again reminded not to mention any condition in the Bid which is contradictory to the terms and conditions of "RFQ". 19. E-PAYMENT GAIL (India) Limited has initiated payments to Suppliers and Contractors electronically, and to facilitate the payments electronically, the Bidder should have an account with any Indian Schedule Bank, so that the payment through 'e-banking/rtgs/neft be made to the Bidder. Further, the Bidder should give the details of his bank account in any one of the above banks to facilitate payment through 'e-banking/rtgs/neft (As per Format F- 12 enclosed under Section-VI of this tender document). Bidders are requested to strictly take into note that 'payments' shall not be released in any other form other than 'e-banking/rtgs/neft. 20. AGENT/CONSULTANT/REPRESENTATIVE/RETAINER/ASSOCIATE NOT APPLICABLE Page: 12 of 57

13 [D] SUBMISSION OF BIDS 21. SEALING AND MARKING OF BIDS 21.1 Bid shall be submitted in the following manner in separately sealed envelopes, duly super-scribed as below: Part-I - Techno-commercial / Un-priced Bid [in 'original', only] Part-II - Price Bid [in 'original', only] Part-III - Bid Security [in 'original', only] 21.2 Part 'I' shall contain 'original' of "UN-PRICED BID" complete with all 'technical' and 'commercial' details other than prices [with, prices 'blanked out'] and a copy of 'Bid Security'. All 'Un-priced Bids' shall be completely identical in all respects including enclosures and shall be enclosed in a separately sealed envelope, duly pasted with the corresponding 'Cut-Out slip' [enclosed]. In the event of any discrepancy between them, the 'original' shall govern. The envelope shall also indicate the name of the Bidder Part 'II' shall contain 'original' of "PRICE BID", with duly filled-in "Schedule of Rates [SOR]", sealed in a separate envelope, duly pasted with the corresponding 'Cut-Out slip' [enclosed] Part 'III' shall contain 'original' of "EARNEST MONEY/BID SECURITY" in a separately sealed envelope, duly pasted with the corresponding 'Cut-Out slip' [enclosed] The 'three [03] envelopes' containing PART 'I', PART 'II' & PART 'III' should be enclosed in a 'bigger envelope',duly sealed, marked and pasted with the corresponding 'Cut-Out slip' [enclosed] and must also bear the 'Name &Address of Bidder' If the outer envelope is not sealed and pasted with the corresponding 'Cut-Out slip [enclosed]', GAIL will assume no responsibility for the Bid's misplacement or premature opening. 22. DEADLINE FOR SUBMISSION OF BIDS 22.1 Bids must be received by GAIL at the address specified in the "Request For Quotation [RFQ]", and not later than the date and time stipulated in the "RFQ" GAIL may, in exceptional circumstances and at its discretion, on giving reasonable notice by fax or any written communication to all prospective Bidders who have been issued the Bid Documents, extend the deadline for submission of Bids, in which case all rights and obligations of GAIL and the Bidders, previously subject to the original deadline will thereafter be subject to the deadline as extended. 23. LATE BIDS: NOT APPLICABLE Any Bid received by GAIL after the deadline for submission of Bids prescribed in the "RFQ", will be rejected and returned unopened to the Bidder after finalization of the Tender for 'Award'. 24. MODIFICATION AND WITHDRAWAL OF BIDS 24.1 Bidder may modify or withdraw his Bid after the Bid submission but before the 'Due Date of Bid Submission', provided that written notice of the 'modification / withdrawal' is received by GAIL prior to the deadline for submission of Bids. GAIIL (India)) Limited GAIL COMPLEX, Nanakhera,Sanwer Road, Ujjain (M.P.) The modification shall also be prepared, sealed, marked and dispatched in accordance with the provisions of "ITB: Clause-21", with the outer and inner envelopes additionally marked "modification" or "withdrawal", as appropriate. A withdrawal notice may also be sent by or telex or cable, but followed by a signed Confirmation copy post marked not later than the deadline for submission of Bids No Bid shall be allowed to be modified after the deadline for submission of Bids No Bid shall be allowed to be withdrawn in the interval between the deadline for submission ofbids and the expiry of the 'Period of Bid Validity' specified in the "RFQ". Withdrawal of a Bid during this interval shall result in the forfeiture of the Bidder's 'Earnest Money / Bid Security' pursuant to "ITB: Clause-15.7". [E] BID OPENING AND EVALUATION 25. BID OPENING 25.1 Un-priced Bid Opening: GAIL will open the Bids, including withdrawals & modifications made pursuant to "ITB: Clause-24", in the presence of Bidders' representatives who choose to attend on the date, time and location stipulated in the "RFQ". The Bidders' representatives, who are present, shall sign a register evidencing their attendance Price Bid Opening: GAIL will open 'Price Bids' of those Bidders who meet the qualification requirement and whose Bids are determined to be 'technically and commercially responsive'. Bidders selected for opening of their 'Price Bids' shall Page: 13 of 57

14 be informed about the 'Date of Price Bid Opening' through /fax. Bidders may depute their 'authorized representative(s)' to attend the opening. The Bidders' representative(s), who are present, shall sign a register evidencing their attendance. 26. PROCESS TO BE CONFIDENTIAL 26.1 Information relating to the examination, clarification, evaluation, and comparison of Bids, and recommendations for the award of a Contract, shall not be disclosed to Bidders or any other persons officially concerned with such process. Any effort by a Bidder to influence the Employer's processing of Bids or award decisions may result in the rejection of the Bidder's Bid. 27. CONTACTING THE EMPLOYER 27.1 From the time of Bid opening to the time of award of Contract, if any Bidder wishes to contact the Employer on any matter related to the Bid, it should do so in writing Any effort by the Bidder to influence the Employer in the Employer's 'Bid Evaluation', 'Bid Comparison', or 'Contract Award' decisions may result in the rejection of the Bidder's Bid. 28. EXAMINATION OF BIDS AND DETERMINATION OF RESPONSIVENESS 28.1 Prior to the detailed evaluation of Bids, the Employer will determine whether each Bid, (a) Meets the "BEC" / 'techno-commercial requirements' of the Bidding Documents; (b) Has been properly signed; (c) Is accompanied by the required 'Earnest Money / Bid Security'; (d) Is substantially responsive to the requirements of the Bidding Documents; and (e) Provides any clarification and/or substantiation that the Employer may require to determine responsiveness pursuant to "ITB: Clause-28.2" 28.2 A substantially responsive Bid is one which conforms to all the terms, conditions and specifications of the Bidding Documents without material deviations or reservations. A material deviation or reservation is one, (a) That affects in any substantial way the scope, quality, or performance of the works; (b) That limits in any substantial way, inconsistent with the Bidding Documents, the Employer's rights or the Bidder's obligations under the Contract; or (c) Whose rectification would affect unfairly the competitive position of other Bidders presenting substantially responsive Bids If a Bid is not substantially responsive, it may be rejected by the Employer and may not subsequently be made responsive by correction or withdrawal of the nonconforming deviation or reservation. 29. CORRECTION OF ERRORS 29.1 Arithmetic Corrections: The bids will be checked for any arithmetical errors as follows: Rates should be quoted only in Figures. In case of any error in total indicated by the Bidder, the unit price alone shall be considered valid and binding on the Bidder. If the bidder does not accept the correction of errors, its bid will be rejected and the bid security will be forfeited. 30. CONVERSION TO SINGLE CURRENCY FOR COMPARISON OF BIDS NOT APPLICABLE 31. EVALUATION AND COMPARISON OF BIDS 31.1 GAIL (India) Limited will evaluate and compare the Bids previously determined to be substantially responsive pursuant to "ITB: Clause-28" and the same has been elaborated in Section-I & Section IV. 32. PREFERENCE FOR DOMESTIC BIDDERS NOT APPLICABLE 33. PURCHASE PREFERENCE NOT APPLICABLE 34. COMPENSATION FOR EXTENDED STAY NOT APPLICABLE Page: 14 of 57

15 [F] AWARD OF CONTRACT 35. AWARD 35.1 Subject to "ITB: Clause-28", GAIL will award the Contract to the successful Bidder whose Bid has been determined to be substantially responsive and has been determined as the lowest, is determined to be qualified to satisfactorily perform the Contract. 36. EMPLOYER'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL BIDS 36.1 GAIL reserves the right to accept or reject any Bid, and to annul the Bidding process and reject all Bids, at any time prior to award of Contract, without thereby incurring any liability to the affected Bidder or Bidders or any obligations to inform the affected Bidder or Bidders of the ground for GAIL's action. 37. NOTIFICATION OF AWARD / LETTER OF INTENT 37.1 Prior to the expiry of 'Period of Bid Validity', GAIL will notify the successful Bidder in writing, in the form of "Notification of Award" / "Letter of Intent [LOI]", through fax/ /telex, that his Bid has been accepted. In response, the successful Bidder will be required to confirm acceptance of the "Letter of Intent [LOI]" 'Time Period' shall be counted shall be commenced from the date of "Notification of Award" / "Letter of Intent [LOI]" or as may be mentioned in the "Letter of Intent [LOI]" / "Letter of Acceptance [LOA]". The "Letter of Acceptance [LOA]" will constitute the formation of a Contract, until the Contract has been affected pursuant to signing of Contract as per "ITB: Clause-38". Upon the successful Bidder's / Contractor's furnishing of 'Contract Performance Security / Security Deposit', pursuant to "ITB: Clause-39", GAIL will promptly notify each successful Bidder and will discharge his 'Earnest Money / Bid Security', pursuant to "ITB: Clause-15". 38. SIGNING OF AGREEMENT 38.1 GAIL will award the Contract to the successful Bidder, who, within 'fifteen [15] days' of receipt of the same, shall sign and return the acceptance copy to GAIL The successful Bidder/Contractor shall be required to execute an 'Agreement' in the proforma given in this Tender Document on a 'non-judicial stamp paper' of appropriate value [cost of the 'stamp-paper' shall be borne by the successful Bidder/Contractor] and of 'Madhya Pradesh State' only, within 'fifteen [15] days' of receipt of the "Letter of Acceptance [LOA]" of the Tender by the successful Bidder/Contractor. In the event of failure on the part of the successful Bidder/Contractor to sign the 'Agreement' within the above stipulated period, the 'Earnest Money / Bid Security' shall be forfeited and the acceptance of the Tender may be considered as cancelled. 39. CONTRACT PERFORMANCE SECURITY / SECURITY DEPOSIT 39.1 Within 'fifteen [15] days' of the receipt of the "Letter of Acceptance [LOA]" from GAIL, the successful Bidder shall furnish the 'Contract Performance Security / Security Deposit' in accordance with 'Article-24' of "General Conditions of Contract [GCC]" in the form provided in the Bidding Documents. The same shall be kept valid for the entire duration of the Contract. The 'Contract Performance Security / Security Deposit' shall be in the form of either 'Banker's Cheque' or 'Demand Draft' or Bank Guarantee, and shall be in the currency of the Contract The 'Contract Performance Security / Security Deposit' shall be for an amount equal to 10% of Contract/Work Order Value towards faithful performance of the contractual obligations. This Bank Guarantee / Demand Draft / Banker's Cheque shall be from any Indian scheduled bank or a branch of an International bank situated in India and registered with Reserve Bank of India as scheduled foreign bank. However, in case of Bank Guarantees from banks other than the Nationalized Indian banks, the bank must be a commercial bank having net worth in excess of Rs. 100 Crores [Rupees One Hundred Crores] and a declaration to this effect should be made by such commercial bank either in the Bank Guarantee itself or separately on its letterhead. This 'Bank Guarantee' shall be valid until 'three [03] months' beyond the specified "Contractual Period + Defect Liability Period" Failure of the successful Bidder to comply with the requirements of this article shall constitute sufficient grounds for the annulment of the award and forfeiture of the 'Earnest Money / Bid Security', in which event GAIL may award the Contract to the next lowest evaluated Bidder or call for new Bids. 40. CORRUPT OR FRAUDULENT PRACTICES 40.1 GAIL requires that Contractor(s) observes the highest standard of ethics during the execution of the Contract. In pursuance of this policy, the Employer: (a) Defines, for the purposes of this provision, the terms set forth below as follows: (i) "Corrupt practice" means the offering, giving or soliciting of anything of value to influence the action of a public official in the procurement process or in Contract execution; and Page: 15 of 57

16 (ii) "Fraudulent practice" means a misrepresentation of facts in order to influence a procurement process or the execution of a Contract to the detriment of the Employer, and includes collusive practice among Bidders [prior to or after Bid submission] designed to establish Bid prices at artificial noncompetitive levels and to deprive the Employer of the benefits of free and open competition. (b) (c) Will reject a proposal for award if it determines that the Bidder recommended for award has engaged in corrupt or fraudulent practices in competing for the Contract in question; Will declare a Firm ineligible and put on Holiday, either indefinitely or for a stated period of time if it at any time determines that the Firm has engaged in corrupt/fraudulent practices in competing for, or in executing a Contract. Page: 16 of 57

17 SECTION-III SPECIAL CONDITIONS OF CONTRACT [SCC] & SCOPE OF WORK Page: 17 of 57

18 SPECIAL CONDITIONS OF CONTRACT [SCC] 1. GENERAL INFORMATION The "Special Conditions of Contract [SCC]" shall be read in conjunction with the "General Conditions of Contract [GCC]", "Schedule of Rates [SOR]", "Specifications & Scope of Work" and any other document forming part of the Contract, wherever the context so requires. Notwithstanding, the sub-divisions of the documents into separate sections, each part shall be deemed to be supplementary of every other part and shall be read with and into the Contract so far as it may be practicable to do so. Wherever any portion of the "GCC" is repugnant to or at variance with any provisions of the "SCC", unless a different intention appears the provisions of the "SCC" shall be deemed to override the provisions of "GCC", and shall to the extent of such repugnancy or variations, prevail. In case of any contradiction, the decision of the "Engineer-in- Charge [EIC]" will be final and binding on the Contractor. 1.1 Whenever it is mentioned in the specification that the contractor shall perform and execute the certain work or provide certain facilities, it is understood that the contractor shall do at his own cost and the contract price shall be deemed to have included cost of such performances and provisions, so mentioned. 1.2 The materials, design and workmanship shall satisfy the applicable relevant Indian Standards, the job specifications contained herein & codes referred to. Where the job specifications stipulate requirements in addition to those contained in the standard codes and specifications, these additional requirements shall also be satisfied. 1.3 The jobs mentioned under Scope of Work shall be carried out as per the Work Procedure, Documentation, relevant codes & standards and as per guidelines /directions of EIC on time to time given to the contractor. Work can be split in to more than one part. The entire decision shall lies with the GAIL & no clarification will be given for the same. 1.4 The specifications for the entire work shall be in accordance with latest CPWD specifications with all correction slip, latest IS codes and codes mentioned in specifications. Whenever these codes are silent, the same shall be governed by sound engineering practice and the decision of the EIC in matter of interpretation shall be final and binding on the contractor. 1.5 CPWD specification and relevant IS codes and standards are kept in the office of the M (P/L), GAIL, Khera and bidders must inspect and read carefully before submitting their quotation. It is fully read and understood by the bidders irrespective of the fact whether they have done so or not and no claim on this account shall be entertained at a later date. It is deemed understood that the bidders are thoroughly read the tender documents before filling the rates. 1.6 The entire work is to be carried out along the Pipeline, Pipeline ROU and the stations mentioned in Specifications & Scope of Work. 2. SITE-INFORMATION The entire work is to be carried out along pipeline site as mentioned in Technical Specifications of tender document. It is understood that before quoting the 'rates/prices', the Bidder has visited the work-site and has acquainted himself fully with the nature and quantum of job/work to be carried out by him in case of award of Contract. Ignorance of this will not be considered after the award of Contract. The Contractor will be responsible to Page: 18 of 57

19 complete the entire job / work in all respects, including any other work necessary to complete the job satisfactorily, though specifically not covered in "Specifications & Scope of Work". 3. CONTRACT VALUE The 'Contract Value' shall be as per the 'quoted/accepted rates' in the "SOR", excluding 'Service Tax' [and, Cess thereon] which shall be payable extra at actual by GAIL. 'Quantities' shown in the "SOR" are only 'indicative / tentative' and the same may be subjected to variation in both ways minimum value of work is not guaranteed. The Contractor shall not seek any revision in the 'quoted rates/prices' on account of any such variation(s) in 'quantities'. 4. VALIDITY OF QUOTED RATES/PRICES 4.1. The 'quoted/accepted rates' shall remain valid for the entire duration of the Contract, including for any further extendable period, and no escalation, for whatsoever reason, shall be permissible at a later date PRICE ESCALATION: The contract price shall be deemed to be firm and valid for the entire duration of the contract till the completion of work, and shall not be subject to any adjustment due to increase in prices of materials, utilities, or any other input for performance of work under the contract. 5. TAX LIABILITIES 5.1. The prices quoted in the "SOR" should be inclusive of all expenses of transportation, overheads, profits, etc. The same should also be inclusive of all taxes [except 'Service Tax', and 'Cess' thereon], duties, levies, statutory payments, license fees, etc. imposed by the Government of MADHYA PRADESH, Works Contracts, etc. While quoting the rates/prices, the Bidder shall take into account all these aspects, and no separate payment on any account shall be payable to the Contractor at a later date. All royalties etc. as may be required for any Borrow Areas. Including right of way etc., to be arranged by contractor, shall be deemed to have been included in the quoted prices Contractor shall be liable for timely payment of all taxes, duties and levies imposed by any Government / Government Department / Agency / Body including local autonomous bodies from time to time without any extra claim from the Owner/GAIL. However, the Service Tax payable by the Contractor [if applicable], shall be reimbursed on production of receipt thereof. GAIL shall have no liability on these accounts and the Contractor shall indemnify GAIL from any such liability, even if it arises in future 'Income Tax' deductions shall be made from all payments to the Contractor as per rules and regulations in force in accordance with the "Income Tax Act" prevailing from time to time. However, Contractor shall be entitled to get the "TDS Certificate" for the amount so deducted in the format prescribed by the 'Income Tax Department'. Contractor has to submit copy of PAN and TIN. 6. CONTRACT PERFORMANCE SECURITY / SECURITY DEPOSIT 6.1. 'Contract Performance Security / Security Deposit' of "10% [ten per-cent]" of the total estimated 'Contract Value' is to be remitted by the 'successful Bidder / Contractor' within 'fifteen [15] days' of issue of "Letter of Acceptance [LOA]". However, 'Bid Security' remitted by the 'successful Bidder / Contractor' can be converted / adjusted towards 'Contract Performance Security / Security Deposit', only if submitted in the form of 'Demand Draft' / 'Banker's Cheque'. Page: 19 of 57

20 6.2. No interest shall be payable by the GAIL to the Contractor for the amount of 'Contract Performance Security / Security Deposit' remitted by him for fulfillment of the terms and conditions of the Contract The Contractor can furnish the 'Contract Performance Security' / 'Security Deposit' amount through 'Demand Draft' / 'Banker's Cheque' / 'Bank Guarantee' as per 'Clause No 39' of "Instructions of Bidders [ITB]" in the prescribed pro-forma. The same shall be valid throughout the entire duration of the Contract and until the expiry of the "Defect Liability Period [DLP]", as a security for the satisfactory execution and completion of all works in accordance with the scope of work, technical specifications, terms and conditions of the Contract The 'Contract Performance Security / Security Deposit' of the Contractor shall be forfeited, if any statement / document(s) furnished by the 'successful Bidder / Contractor' are found false and/or fabricated The 'Contract Performance Security / Security Deposit' as above, after adjustment of any dues to GAIL, which may arise during the execution of the Contract, shall be refunded after expiry of the "Defect Liability Period [DLP]". 7. CONTRACT AGREEMENT The Contractor shall execute a Contract Agreement [as per the pro-forma given in this Tender Document] strictly within 'fifteen [15] days' from the receipt of this "Letter of Acceptance [LOA]". The same shall be executed on a non-judicial stamp paper of appropriate value and of Madhya Pradesh State only. The cost of stamp paper shall be borne by the Contractor. 8. TERMINATION OF CONTRACT 8.1. In case, the Contractor's performance is not found satisfactory as per the opinion of "EIC" at any point of time during the Contract, the Contract may be terminated by giving a fifteen [15] days' notice. Any loss incurred by the Owner / GAIL on this account shall be recovered from the Contractor. GAIL may engage another agency to complete pending jobs under this Contract at the risk and cost of the Contractor. If it is observed that work can not be completed within the stipulated time, GAIL may get the work done through other agency(s) at the risk and cost of the Contractor Without prejudice to any rights under this Contract, if the Contractor dies, the "EIC" on behalf of the GAIL shall have the option of terminating the Contract without compensation to the Contractor. 9. BONUS FOR EARLY COMPLETION: 9.1 Partial modification to Clause No of General Conditions of Contract, bonus for early completion is not applicable for this tender. 10. DURATION/PERIOD OF CONTRACT The Duration of Contract / Period for all jobs listed under Specifications & Scope of Work and Schedule of Rates [SOR] shall be "Six (06) months including mobilization which shall be reckoned from the date of Letter of Intent (LOI) or Letter of Acceptance (LOA) or as may be mentioned in LOI/LOA The job will be intimated to the contractor on as and when required through job card (sample copy of the same is attached). The contractor has to carry out the works of the job card within time schedule mentioned in the job card. In case of failure to do so, penalty as per clause 44 shall be applicable. Moreover, such work may be executed through other agency at the risk and cost of contractor. This will be not applicable for emergency works mentioned in contract/sor/ instructed by EIC. Page: 20 of 57

21 SAMPLE FORMAT OF JOB CARD Maint Base: WO No: JOB CARD NO Date: S.No Description of work Location SOR Item No SOR Qty Quantity to be Executed Target date Actual completion Date Signature of Contractor 11. ENGINEER-IN-CHARGE [EIC] Signature of EIC/SIC "HOD [Pipeline department, GAIL (India) Limited, Khera]" or his authorized representative shall be the "Engineer-in-Charge [EIC]" for the work under the Contract The "EIC" shall look after general supervision and directions of the work. He will be authorized to stop the work, whenever such stoppage may be necessary to ensure proper execution of the Contract. He shall also have authority to reject all works, which do not conform to the specifications The "EIC" reserves the right to suspend the work or part thereof at any time and no claim whatsoever on this account shall be entertained. In case of any dispute, the Contractor may appeal to the "EIC" whose decision shall be final The decision of "EIC" for determining the category of work with reference to material of an item not mentioned in the "Scope of Work & Technical Specifications" and/or "SOR" shall be final and binding on the Contractor. 12. MEASUREMENT OF WORK & PAYMENT The contractor shall be allowed to raise monthly running account bills against completion of work on region-by-region basis. The contractor shall submit R A/Final bills in prescribed Pro-forma in Triplicate along with progress reports duly certified by the Site Engineer The payment shall be made through e-payments only. Before raising any bill, the Contractor is required to open an account having e-banking facility Payment will be made based on joint measurements taken by the contractor and certified by the site engineer/ Engineer-Incharge. Payments shall be released from GAIL, Khera only Sales tax and income tax deductions and any other statutory deductions shall be made as per the relevant rates from time to time (as per rules & regulations of Govt) Measurement will be taken as per unit of measurements for corresponding item in SOR and applicable standards shall be followed. Page: 21 of 57

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