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RFQ Ref No: PU-T512002

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Global Tender Enquiry

Request for Quotation (RFQ)

For

Stainless Steel Scrap

STEEL AUTHORITY OF INDIA LIMITED

SALEM STEEL PLANT

RFQ No.: PU-T512002 dated 04.04.2014.

Last date for Techno-Commercial Bid submission

On or before 15:00 Hrs (IST),

05.05.2014. Price bid submission Only on-line (sealed) price bid

submission, by techo-commercially accepted bidders.


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Index

Description Contents

Part I Over view

Part II Instructions to Bidders

Preparation of bids

Submission of bids

Bid opening and evaluation

Other terms & conditions

Part III Commercial Terms & Conditions

Part IV Conditions applicable to direct import offers

Part V Technical Specifications

Part VI Format for Taxes & Duties and models for price evaluation (Import & Domestic).

Form I Format for Acceptance of Commercial terms, General Terms and Conditions and all other terms and conditions.

Form II Statement of Deviation from specification and bid terms.

Form III Data Sheet for imports & Indigenous suppliers.

Form IV Format for basic information of vendor.

EMD Bank Guarantee Format.

List of banks for Bank Guarantee.

Annexure-I General Terms & Conditions of Reverse Auction (RA) and RA related documents & Forms.


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Part-I

Overview

Salem Steel Plant (SSP), a unit of Steel Authority of India Limited (SAIL) (A Government of India

Undertaking), a leading manufacture in India, situated at Salem in Tamil Nadu, presently intends to procure 500 Metric Tonnes of Stainless Steel Scrap (SS Scrap). Tenders / bids / offers are invited in this respect, from eligible bidders / tenderers..

Technical Specifications of SS Scrap is as detailed in Part-V of this RFQ.

Bidders are requested to read carefully the instructions contained in the RFQ and submit their offer in line with the requirement indicated. The offer is required to be submitted as follows:

Tender to be submitted at The Tender Box at:

Despatch Section, General Administration Department, Administrative Building, Salem Steel Plant, Salem-636 013 (Tamil Nadu), India.

Tender sent by Post/ Courier to be addressed to

DGM I/C (MM), Salem Steel Plant,

Salem-636 013 (Tamil Nadu), India.

(Envelope containing bid / offer should be clearly super scribed with the RFQ reference no, due date of submission, due date of opening)

Due date of submission of Tender (EMD, Techno Commercial bid, and Price Bid)

On or before 15:00 hrs (IST) on 05.05.2014.

Due date for opening of Tender (EMD and Techno Commercial Bid only)

On 06.05.2014 at 10:00 hrs (IST)

Validity of the Offer for order placement:

EMD (Rs.5 Lakhs or USD 10,000) shall remain valid for six months from the last date of submission of offer, extendable by another three months.

Techno-commercial bid shall remain valid for 180 days from the date of opening.

On-line price bid shall remain valid for minimum ten (10) working days (excluding the date of submission, Saturdays & Sundays).


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Summary of other relevant details of the RFQ are as under:

SN Description

Details

i Material Specification Stainless Steel Scrap (SS Scrap / scrap) of 300 series as detailed in Part-V of this RFQ .

ii Quantity 500 MT

iii Unit of Measurement MT

iv Submission of price bid To be submitted on-line, in mjunction site, based on the intimation from the purchaser, and within the time stipulated by the purchaser.

v Pricing Fixed Price for 18 % Cr and 8 % Ni, throughout the supply.

vi Price Discovery Either by On-line Reverse Auction or through Off-line finalization as explained at Clause 22.0 of Part-II of this RFQ.

The price finalized for each lot shall remain FIRM till completion of supplies against the lot.

vii Delivery Schedule Three months from the date of order or as finalized by between the Seller and SAIL/SSP.

viii Packing

Packing in loose in 20 ft end opening containers each carrying 18 to 23 MT of SS scrap.

ix Inspection 3rd party Inspection at load port, by any of DGFT approved Inspection Agencies.

x Option of splitting order on more than one tenderer

Yes (at the option of SAIL/SSP).


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PART-II

INSTRUCTIONS TO BIDDERS

1.0 Eligibility Critteria: The Bids received from the bidders meeting the criteria specified here

under will only be considered for evaluation:

a) Tenderer should have successfully executed orders for 300 Series Stainless Steel scrap, in any of the preceding three calendar years i.e., in 2011, 2012 & 2013 or in the current year till Feb‟14.

b) Documentary evidence are to be submitted giving details of shipments / deliveries made,

along with copy of Buyer‟s purchase order(s) or copy of Invoices and copy of Shipping

Documents etc., The copies of such documents should be in the name of the tenderer only.

c) Self-certification to the effect that tenderer has not been banned for export of Stainless Steel Scrap to India by DGFT, India or by any other Indian Government Agencies or by Government Importer.

Note: (i) Indian Central PSU trading house, having due authorization from the overseas scrap suppliers may also be considered eligible for participation. The authorization letter of overseas / foreign principal to this effect is to be submitted along with Techno-commercial bid. However, “high-sea sales” will not be acceptable.

(ii) Indian Agents can bid on behalf of their foreign principal. However, an Indian agent can submit offer on behalf of only one foreign principal. The authorization letter of overseas / foreign principal to this effect is to be submitted along with Techno-commercial bid and the supplies will be made directly by the foreign principal. In case the said foreign principal also submits offer directly against this tender, offer of the foreign principal shall only be considered; the offer of the Indian Agent will not be considered

2.0 Cost of Bidding: The bidder shall bear all costs associated with the preparation and submission of its bid, and SAIL/SSP, hereinafter referred to as "The Purchaser / Buyer", will, in no case, be responsible or liable for such costs, regardless of the conduct or outcome of the bidding process.

3.0 No. of Sources: SAIL reserves the right to engage more than one source of supply under this

RFQ.

4.0 Clarification of RFQ

A prospective Bidder requiring any clarification of the RFQ may notify the Purchaser in writing or by fax / email at the Purchaser's mailing address indicated in the RFQ. The Purchaser will respond in writing or by fax / email to any request for clarification of the RFQ which it receives not later than five (5) days prior to the deadline for the submission of bids prescribed by the Purchaser.


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5.0 Amendment to RFQ

5.1 At any time prior to the deadline for submission of bids, the Purchaser may, for any reason, whether at its own initiative or in response to a clarification requested by a Bidder, modify the RFQ by issuing an amendment / Corrigendum.

5.2 Such amendment will be uploaded only on the same websites i.e. www.sailtenders.co.in & the same shall be binding on all bidders. Where the Purchaser issues an amendment within three (3) days prior to deadline for submission of bids, the Purchaser will simultaneously extend the deadline for the submission of bids by three (3) or more working days. Corrigendum /

Amendments will not be published in News Papers. Hence, the prospective bidders are requested to visit the above cited web site at regular intervals.

Note: The Bidder is expected to examine all instructions, proforma, terms and specifications in the RFQ. Failure to furnish all information required under the RFQ or submission of a bid not substantially responsive to the RFQ in every respect will be at the Bidder's risk and may result in the rejection of the bid.

PREPARATION OF BIDS

6.0 Language of Bid: The Bid prepared by the Bidder and all correspondence and documents relating to the bid, shall be in the English language. Any printed literature furnished by the Bidder in another language must be accompanied by a duly signed English translation and for purposes of interpretation of the bid, the English translation shall govern.

7.0 Documents comprising the Bid: The bid prepared by the Bidder shall comprise of the following components:

a) Earnest Money Deposit (EMD) (Part-I) as detailed in clause 9.1 below.

b) Techno-Commercial Bid (Part II) complete in accordance with Instructions to Bidders stated in this RFQ.

c) Self attested documentary evidence to establish (in accordance with the Eligibility Criteria) that the Bidder is eligible to bid and is qualified to perform the Contract if its Bid is accepted;

8.0 The Bidder shall submit his Bid complete in all respects and all details as stipulated in the RFQ, including quantity offered, complete specifications, etc.

9.0 Earnest Money Deposit (EMD):

9.1 Each bid should be accompanied by EMD for an amount of US $ 10,000 (United States Dollars

Ten Thousand only) or INR 500,000 (Indian Rupees Five Lakhs only). The EMD will be submitted by way of Demand draft, pay order, Banker‟s cheque drawn in favour of SAIL, a/c Salem Steel Plant or in the form of a Bank Guarantee (strictly as per the format enclosed to this RFQ) issued by any Scheduled Bank having RBI Clearance (excluding Co-operative banks & Gramin Banks as per the list enclosed to this RFQ). Bank Guarantee should have initial validity of 6 (six)months from the last date of submission of bids against this tender enquiry and should be extentable by another 3 (three) months, at buyer‟s option. The Bank Guarantee should be enforceable at Salem, Tamil Nadu.

9.2 EMD is to be deposited with techno-commercial bid in a separate envelope. No request for adjustment of earlier dues in place of Earnest Money shall be entertained.

9.3 A bid which is not accompanied by EMD of requisite value shall be rejected.


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9.4 Return of EMD: EMD of techno-commercially not acceptable bidders will be returned within seven days of finalising the same. EMD of unsuccessful Bidders will be returned to the Bidders within 15 days of issuance of Purchase Order on the Successful Bidder (s). EMD of the successful bidder shall be retained as Security Deposit, till the supplies against the order is completed successfully.

9.5 While releasing the EMD, if submitted in USD, collection charges in actual or min USD 15 (fifteen) shall be deducted towards bank charges.

10.0 Forfeiture of EMD: The EMD shall be forfeited: a) if a Bidder withdraws or modifies their Bid unilaterally after deadline of submission of bid or

during the period of Bid validity specified by the Bidder; b) if a bidder is not submitting on-line price in mjunction site within the time stipulated by the

purchaser. c) in the case of a successful bidder declining to provide price break up and justification for the

price quoted, if the same is asked by SAIL/SSP or the Service Provider (mj).

10.1 EMD shall not earn any interest / not liable for any financial charges on it, from the buyer.

11.0 Validity of the offer: 11.1 The bidder shall keep his Techno Commercial offer valid for acceptance by SAIL / SSP for 180

(One Hundred and Eighty) days from the date of tender opening.

The on-line sealed price bid submitted by the Techno-Commercially acceptable bidders in mjunction site, will be valid for ten (10) working days (excluding the date of submission, Saturdays & Sundays).

12.0 Format for the Bid 12.1 The Bidder shall prepare the Bid in TWO parts i.e. Bid Bond / EMD (Part -1), Techno-

Commercial Bid (Part-2). Each page of the bid will be numbered consecutively, referring to the total number of pages comprising the entire bid, at the top right-hand corner of each page.

12.2 Each page of the bid / offer should be signed by the authorised officer(s) of the Bidder.

12.3 Failure to furnish correct and detailed information as called for, may render the bid liable for rejection.

13.0 The Bidder shall submit his Bid confirming his acceptance to all the terms and conditions of the Bidding Documents, except for the deviations specifically proposed by him in his Bid as per

Form II. All the pages of this Bidding Document, duly signed by the Bidder, should be submitted alongwith the Bid, as a token of acceptance of SAIL's terms and conditions. If there is no deviation statement enclosed, it will be construed that the tender terms & conditions are acceptable to the bidder, in toto.

SUBMISSION OF BIDS

14.0 Sealing and Marking of Bids 14.1 The detailed offer together with its enclosures should be submitted in original in two parts: PART-1 : EMD.

PART-2 : TECHNO-COMMERCIAL BID and signed copy of this tender document. (Each part in separate sealed envelopes).


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14.2 Each part of the offer / bid together with its enclosures should be placed in separate envelopes which should bear, in block capital letters the superscription "OFFER IN RESPONSE TO TENDER NO. PU-T512002 dated 04.04.2014, opening on (date) 06.05.2014” and should also bear superscription: PART-1: EMD PART-2 :TECHNO-COMMERCIAL BID. Both the envelopes should be sealed separately.

14.3 Both the envelopes referred to above should be placed in another bigger envelope which should be addressed to:

The DGM I/C (MM), Steel Authority of India Limited,

Salem Steel Plant, Salem-636 013 (Tamil Nadu), India.

and should bear, in Block Capital Letters, the superscription "OFFER /BID IN RESPONSE

TO GLOBAL TENDER NO: PU-T512002 dated 04.04.2014 due for opening on (date)

06.04.2014”. This envelope should also be sealed. The name & address of the Bidder should

be mentioned on this envelope as well as on the envelopes containing Part -1 and Part-2, enabling the purchaser to return the bid unopened, in case it is declared "Late Bid”.

14.4 If the outer envelope is not sealed and marked as required by Para as above, the Purchaser will assume no responsibility for the Bid's misplacement or premature opening.

15.0 Submission of on-line sealed Price Bid:

Upon Techno-Commercial evaluation of the offers, the purchaser will intimate the Techno-Commercially acceptable bidders to submit on-line sealed price in mjunction site. The Techno-Commercially acceptable bidders will have to submit on-line (sealed price) bid in mjunction site within the stipulated time.

In the on-line sealed price bid the bidders are required to quote as below:

Domestic bidders / suppliers: have to quote a fixed price of Rupees per MT for 300 series SS Scrap considering 18 % Chromium and 8 % Nickel in the scrap, for a delivery term of F.O.R -SAIL/SSP‟s stores.

Over-seas bidders / suppliers: have to quote a fixed price of USD per MT for 300 series SS Scrap considering 18 % Chromium and 8 % Nickel in the scrap, for delivery term of CFR Chennai Sea Port.

16.0 Deadline for Submission of Bids: 16.1 Bids must be received by the Purchaser at the address as specified above, at or before 15:00

HRS (IST) on 05.05.2014.

16.2 The Purchaser may, at its discretion, extend this deadline for the submission of Bids by amending the Bidding Documents, in which case, all the rights and obligations of the Purchaser and Bidders previously subject to the deadline will thereafter be subject to the deadline as extended.


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17.0 Late Bids Any bid received by the Purchaser after the deadline for submission of Bids prescribed by the Purchaser, at Para 16 above, will be considered “LATE” bid and will be returned unopened to the Bidder.

BID OPENING AND EVALUATION

18 .0 Opening of Bids by Purchaser : The Purchaser will open the EMD (Part-1) and Techno-Commercial Bid and signed copy of this

tender documents (Part-2), in the presence of Bidders' authorised representatives who choose to attend the bid opening, at 10:00 hrs (IST) on 06.05.2014. The Bidders' representatives who are present shall sign a register evidencing their attendance.

19.0 Offers received after due date and time or in single part or without requisite EMD shall summarily be rejected.

20.0 Clarification of Bids: During the examination, evaluation and comparison of Techno-commercial Bids, the Purchaser may, seek for clarifications / confirmations on the Bid from the bidder, if required. The request for clarification / confirmation and the response shall be in writing and no change in the price or substance of the Bid shall be sought, offered or permitted.

21.0 The Purchaser at their discretion, may waive any minor infirmity or non-conformity or irregularity in a Bid which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any Bidder.

22.0 Evaluation and Comparison of Bids: SAIL/SSP will conduct a two-stage evaluation of the bids submitted by the bidders:

Stage 1: TECHNO-COMMERCIAL EVALUATION: The techno-commercial evaluation will be used to assess supplier‟s capability / ability to supply and the acceptance of the bidder to the terms of RFQ. This assessment will be based on the Techo-Commercial documents submitted by the bidders.

After the techno-commercial evaluation, a list of Techno-commercially eligible & acceptable bidders will be prepared for the second stage of evaluation i.e., for on-line price submission and price evaluation. Only the techno-commercially acceptable bidders will be advised to submit on-line sealed price bid in mjunction site.

Stage 2: On-line submission of price bid (in mjunction site): The process of submission of On-line Price bid is as detailed hereunder:- Step 1: Login to http://auction.buyjunction.in Step 2: Click on “Global Tenders”

Step 3: Existing users can login with their user id and password.

New users would have to register for a user id & password on the site

Step 4: Read through the “Bidding Procedure” to proceed further for bidding and place your online price bid

Reverse Auction (RA) shall be conducted with techno- commercially acceptable vendors. On-line sealed Price bids shall be opened at the beginning of Reverse Auction. If there are sufficient techno-commercially acceptable bidders, SAIL reserves the right to open the on-line sealed price bid of all techno-commercially acceptable bidders and finalise the case through


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on-line Reverse Auction (RA). In case if there is less numbers of techno-commercially acceptable offers, the on-line sealed price bid submitted shall be opened and case will be finalised off-line (without RA).

When it is decided by SAIL/SSP to conduct RA, in case, if the RA fails for any reason, SAIL/ SSP reserves the right to consider Online sealed Price bid of techno-commercially acceptable bidders for order finalisation.

After RA / off-line finalisation of the price, the L1 bidder (in case of imports) will submit the ocean freight considered by them in the CFR Chennai Sea Port price quoted. Considering the ocean freight component of the price submitted by the bidder, SAIL/SSP will arrive at FOB Load Port price and accordingly, will make a final decision for placement of order either on FOB Load Port basis or CFR Chennai Port basis. If the L1 bidder fails to give the break up of ocean freight, their EMD will be forefeited.

Stage 3: PRICE EVALUATION:

(i) The price evaluation will be done on the basis of Landed Cost Net of Set Off (LCNS), per MT of scrap, based on the fixed price quoted by the bidder per MT of SS Scrap with 18 % Cr and 8 %

Ni, and as illustrated in the model evaluation sheet in Part- VI (b) and VI (c) of this

RFQ.

(ii) The preferred payment term for the Buyer is Cash Against Document (CAD) for provisional payment of 80% and TT/RTGS for the balance 20 % payment, as per the payment terms in the RFQ. H o w e v e r , i f a n y b i d d e r q u o t e s f o r p a y m e n t t e r m s o t h e r t h a n t h a t p r e f e r r e d b y B u y e r , and if the same is accepted by the Buyer, for any additional financial implication arising out of such deviations in payment terms, suitable loading will be done to arrive at LCNS price. For the purpose of calculations in price evaluation, RBI reference rate of the previous working day of price discovery will be considered. The overall LCNS Price per MT of scrap, after loading as above, if required, will be considered for price evaluation / ranking.

iii) After arriving at LCNS price per MT of scrap as above, and loading if any as indicated above,

tenderers shall be ranked accordingly, based on the loaded, LCNS price (L-1 being the lowest bidder).

In case of Imports, order shall be placed at L-1 price (the lowest LCNC price), if the same is found acceptable to SAIL / SSP. However, the PURCHASER shall have the option to place order on the successful (L1) bidder either on CFR Chennai Sea Port or FOB (Load Port) or part FOB (Load Port) and part CFR Chennai Sea Port basis.

For Domestic supplies, order will be placed on F.O.R (SSP Stores) basis.

23.0 Acceptance of Tender (AT) / Placement of Order: 23.1 The acceptance of the bid / offer shall be made by the purchaser by issuing an Acceptance of

Tender (AT) to the successful bidder (s), which will be the Purchase Order.

24.0 SAIL in its sole discretion reserves itself the right: -

a. To allow Purchase preference to the PSUs as per the relevant prevailing guidelines of Govt. of India

b. To accept or reject the lowest bid or any other bid or all the bids. c. To accept any bid in full / part.


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d. To place order on more than one bidder (supplier / source). 25.0 If any trend of cartel formation is observed in the tendering process, bids of all bidders found

involved in cartel formation are liable to be rejected.

26.0 In the event of placement of order, the other terms & conditions to the extent not mentioned here, shall be governed as per General Condition of Contract „SAIL P-1‟ as modified from time to time. Copy of SAIL P-1, can be downloaded from SAIL Tender Website for reference.

27.0 SAIL/SSP do not intend to negotiate the price and hence, tenderers are requested to quote their most competitive price. Price Negotiation, if any, will be held only with the lowest (L1) bidder.

28.0 L1 Price matching: for distribution of order on more than one source, in order to be eligible for placement of order, the tenderer must match the L1 (LCNC) price. For distribution of quantity, if decided to engage more than one source, bidders may be asked to match L-1 price, as arrived above. The order distribution shall be done as per original ranking of bidders as above and quantity distribution shall be done as per extant guidelines of SAIL. , as detailed below:

No of sources to be engaged Qty Distribution (L1 : L2 : L3 : L4) ----------------------------------------- ------------------------------------------------ Two Party Order : in ratio of 70: 30 Three party order: in ratio of 60:25:15 Four party order : in ratio of 50:25:15:10 & so on.

29.0 SAIL reserves the right to reject the offer of such parties who have failed to supply the material to SAIL / non- complying with the ordered terms issued by SAIL plant.

30.0 Other terms & conditions of tender:

i) Offers should be either fully typed or fully handwritten. Partly typed and partly hand written or overwritten offers are liable to be rejected.

ii) In case of mismatch in description of quantity/ amount in figures and words, the description in words shall prevail.

iii) SAIL/SSP reserves the right to accept any tender in whole or in part, or reject any or all tenders without assigning any reason, whatsoever.

iv) The tenderer must declare whether the proprietor or any partner of the firm, or director of their company, has any relation with any employee working in SAIL, if so give the name of the employee and the relationship and also whether any of them has a relationship within the meaning of section 6 of Companies Act, 1956 with any directors of SAIL and, if so, give details.

v) SAIL/ SSP reserves the right to seek further proof regarding the status/position

of supply as well as establishment of an acceptable source, if required, during the finalisation of the tender.

vi) In case of material not conforming to the specifications and not usable by

SAIL/SSP, SAIL/SSP‟s decision on this material shall be final and binding on the Seller / Supplier.

vii) In the event of failure to supply the material as per specification within the

contracted delivery period, SAIL/SSP reserves the right to cancel the contract in full,


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or part thereof, and, if so, to purchase the goods from alternate source at the risk and cost of defaulting supplier,

viii) Modification and Withdrawal of Bids:

a) The bidders may modify or withdraw its bid after the submission of bid,

provided that written notice of the modification or withdrawal / modification is received by the Purchaser prior to the deadline prescribed for the submission of bids.

b) No bid may be modified subsequent to the deadline for submission of Bids unless

asked for.

ix) In the event of L1 bidder backing out, in addition to fore-feiture of EMD (wherever applicable), the bidder will be suspended for a period of six months from the date of issue of suspension order. The suspension shall apply prospectively and during the suspension period, enquiries will not be issued to the firm and bid submitted against open / Global tenders shall be rejected and this suspension will be for whole of SAIL.

x) Refusal of L1 bidder to give price break-up, in case order cannot be placed by SAIL

without price break-up, the action in para (xi) above shall be applicable.

xi) All disputes are subject to jurisdiction of the Indian Court at Salem, Tamil Nadu, India.

xii) For any clarifications connected with this tender, bidders may contact:

(i) Mr. T Ponnudurai Asst . General Manager (MM- Pur)

Steel Authority of India Ltd, Salem Steel Plant Salem 636 013, Tamil Nadu, India.

(ii) Mr. R Ravichandran Dy General Manager (MM) )

Steel Authority of India Ltd, Salem Steel Plant Salem 636 013, Tamil Nadu, India.

31.0 In case any tampering/unauthorised alternation is noticed in the tender document submitted,

downloaded from SAIL Website, the said tender shall be summarily rejected and the company shall have no liability whatsoever on the matter.

32.0 In case any specific adverse report is received against any supplier from any steel plant of SAIL

regarding their capabilities & performance, their offer may be liable for rejection before or after opening of their price bid.

Phone No. 0427 238 2168 Fax No. 0427 238 3240 Email. [email protected]

Tel : 0427 238 2076

Email : [email protected]


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PART III

Commercial Terms & Conditions

1.0 Pricing and Basis for payment:

1.1 Pricing (on CFR Chennai Sea Port / F.O.R SSP basis):

Refer to Part- II, Clause 15.0 of the RFQ.

1.2 Price evaluation: The bidder shall quote fixed price for 300 series scrap in his offer. The indicative „Cr‟ and „Ni‟

content in the scrap offered by the bidder shall be mentioned by the bidder in their offer.

The price evaluation shall be done on one-to-one basis, considering 18% „Cr‟ and 8% „Ni‟.

To bring all the offers at same platform with respect to the pricing, in case, if „Ni‟ is less than 8% in the offered SS Scrap of the bidder- for every 0.10% or part thereof, Rs. 1000/- per MT shall be added to the quoted price for evaluation.

In the same way, for „Cr‟ less than 18% in the offered scrap by the bidder, for every 0.50% or part thereof, Rs. 500/- per tonne shall be added to the quoted price for price evaluation on one-to-one basis of

1.3 Final pricing for payment:

Payment shall be made considering the order price on 18% „Cr‟ and 8% „Ni „ content basis.

In case of lower „Cr‟ content ie., Cr less than 18%, for every 0.50% or part thereof, Rs.500/- per tonne shall be deducted and payment shall be made accordingly.

In case of lower „Ni‟ content i., Ni less than 8% - for every 0.10% or part thereof , Rs.1000/- per tonne shall be deducted and payment shall be made accordingly.

No payment shall be made for Ni content more than 8 % and Cr content more than 18 %. No payment for Iron (Fe) content of the Scrap will be made.

For Imports: Price should be quoted in USD, on CFR Chennai Port b a s i s , per MT of SS Scrap to be supplied in containers, considering the technical specification, as per INCOTERMS, considering / including all costs in Seller‟s country, including packing & forwarding, and inclusive of all o t h e r costs in seller‟s country, 3rd party Inspection charges. No Indian agent commission shall be considered the price, as the Purchaser will not make any payment of agency commission to the Indian agent directly. The successful tenderer shall indicate Ocean Freight component considered in the CFR Price quoted, on per T basis, based on which the FOB price per MT will be arrived at by SAIL/SSP. SAIL/SSP reserves right to finalise orders on FOB load port basis and material in such case would be handed over to freight forwarders as authorised. The SS Scrap price quoted will be firm, without any change throughout the contract period and during extension period, if any.

For Indigenous Supplies:

Price should be quoted on FOR (SSP Stores) basis, per MT of SS Scrap to be supplied in Containers, as per the Technical Specification and as per the pricing formula. The SS Scrap price quoted will be firm, without any change throughout the contract period and during extension period, if any 2.0 Delivery:


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The time of delivery is the essence of the contract. For imports, the date of Bill of lading

(B/L) shall be considered in respect of delivery compliance. For domestic supplies the physical delivery of the material at SAIL/SSP Stores will be considered as delivery.

3.0 PACKING:

For both imports and indigenous supplies, the material will be supplied loose, in sealed “end

opening” 20 „ containers, in the weight range of 18 to 23 MT of Scrap. The Gross weight of the container, including container weight should not exceed 25.0 MT in any case.

4.0 MODE OF DESPATCH:

Imports will be through Sea upto Chennai Sea Port and then by Road from Chennai to Salem Steel Plant. Domestic supplies will be despatched by Road.

In case of Imports, the supplier shall arrange shipment by Indian Flag vessels and/or through any of carriage on regular liner service, and should be Lloyd‟s 100 Al classification or equivalent. Details of the vessel shall be communicated to the purchaser by the seller. Every shipment must be made under bill(s) of lading, “Freight prepaid.” The date of bill of lading shall be treated as date of shipment. Minimum 14 (Fourteen) days detention free time should be available to SAIL for clearance & unloading of containers.

The seller shall send two sets of nonnegotiable copies of shipping documents to the secretary, Shipping Coordination & Chartering Division, Ministry of Shipping and Transport (Transport Wing), Government of India, New Delhi.

Bill of Lading should be drawn so as to show the following details:

i) Notify:

ASSISTANT GENERAL MANAGER, (SSP Unit Office), Steel Authority of India Limited, SALEM STEEL PLANT, 2ND FLOOR, ISPAT BHAVAN, NO:5, KODAMBAKKAM HIGH ROAD, CHENNAI - 600 034, INDIA. Tel: 91 44 2824 2125. Fax: 91 44 2824 2121 e--mail: [email protected]

ii) Consignee:

DEPUTY GENERAL MANAGER (MM-Stores) Steel Authority of India Limited, SALEM STEEL PLANT, Salem – 636 013, Tamil Nadu, India Tel: 91 427 238 2825. e-mail: [email protected]

5.0 Insurance:

The insurance in respect of the import of the materials supplied is covered under the buyer‟s open policy. The seller should forward a copy of the invoice and a non-negotiable copy of bill of lading / Airway Bill as the case may be each by Air courier service to the buyer‟s under writers. The intimation regarding shipment should be given to the underwriters and the buyer (as nominated by purchaser) over cable / email / fax also.

For domestic supplies, since the delivery term is FOR (SSP Stores), the insurance will be to the account of the seller / supplier.


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6.0 Pre shipment Inspection:

a) Pre shipment inspection for quality and quantity of scrap is to be done at load port by DGFT

approved independent third party inspection agency. Inspection charges shall be paid by the

seller directly to the inspection agency.

b) Inspection agency shall confirm that the material shipped confirms to the buyer‟s Purchase

Order.

c) Inspection Certificates with exclusions like “quality / weight / contract terms” not certified etc.,

shall not be acceptable to SAIL/SSP and payment will not be made for the shipments made

with such certificates.

d) Inspection agency shall also give a certificate, certifying that the material shipped is totally free

from toxic chemicals, radioactive materials, inflammables, explosives, organic matter originated

from animals or plants with danger of epidemic diseases, medical waste, bombs, arms,

ammunitions, mine shells, cartridges, sealed container, gas cylinder or any other war and

explosive materials in any form either used or otherwise and also free of radioactive

contamination, mercury contamination, pressurized, closed or insufficiently open containers of

any origin that could cause explosions in a metalwork furnace.

e) Inspection Agency to certify that the material has been inspected prior to stuffing in the

container and the container has been stuffed and sealed in their presence. The certificate has to

indicate Port of shipment, name of vessel and loading date.

f) Inspection agency shall also issue weight certificate certifying the container-wise weight and the

total quantity shipped on the vessel at load port, indicating the container number and seal

number in respective container.

g) All certificates issued by the inspection agency should be on the letter head of the office

mentioned in Appendix 28 of the Indian EXIM Policy Book.

7.0 TAXES & DUTIES: (For Domestic supplies only)

a. Excise Duty - The Seller shall indicate the rate of excise duty, the relevant tariff, item number applicable for the items offered, and the central excise registration number. The seller shall produce documentary evidence – i.e. duty paying documents (invoice copy). The seller shall pass on any duties refund received subsequently to the buyer.

b. Sales Tax – The Seller shall indicate sales tax rate and registration number. The seller shall reimburse the buyer any variation (reduction) subsequently received by the seller due to any credit/refund allowed. Form C, if required, shall be provided by the respective steel plants.

c. Turnover Tax (T.O.T.) – The seller shall indicate T.O.T., if applicable, with the rate applicable currently and the registration number.

d. Other Taxes – The seller shall indicate if any other taxes are applicable for any particular state.

e. All tax rates currently applicable should be indicated in the techno-commercial bid. Duties and taxes, however, will be reimbursed against documentary evidence at the rates applicable at the


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time of dispatch. In case VAT is applicable the supplier should separately indicate the rate of VAT included in their offered price. Also the supplier should submit VAT documents along with bills for claiming the payment.

f. Where Taxes & Duties are quoted as extra, fresh imposition or variation in statutory taxes / duties / levies if imposed within contractual delivery period will be payable by SAIL on submission of documentary evidence. However, variation beyond the contractual delivery period shall be borne by supplier.

g. However, in the event of such statutory variations resulting in reduction of the quoted prices, such benefit shall be passed on to the purchaser by the bidder.

8.0 In case of imports, the supplier shall make payments for all taxes and duties in the country of export as applicable.

9.0 Payment Term:

9.1 Provisional payment:

80% provisional payment shall be released, based on Seller‟s analysis, against (i) the Original shipping documents (for imports) and (ii) Delivery Challan, LR and Invoice & packing list for domestic supplies.

Payments for domestic supplies will be made in Indian Rupees (INR).

Closing Exchange rate prevailing on the previous day of invoicing shall be considered for any payment / adjustments in payment.

9.2 Final Pricing for payment will be based on the melt report and calculations.

The final price is subject to adjustments based on buyer‟s analysis, and any other deductions, if applicable.

The balance 20% payment (with adjustments, if any) shall be payable through TT / RTGS within 30 days of arrival of material at Chennai Port ( in case of Imports) and at SSP (for domestic supplies), against the following documents, based on the melt analysis result and the acceptance of the material:

i) Seller‟s signed FINAL Commercial Invoice, adjusting the difference between the provisional & final amount.

ii) Statement of final account issued by the Buyer.

The Seller shall submit Final Commercial Invoice / settle the claim amount if any from the Buyer, within 7 days from the receipt of Statement of Final Account from the Buyer.

10.0 Weighment: (for Domestic Suppliers): All the trucks shall be weighed at SSP‟s weighbridge(s) and material quantity will be accepted on SSP‟s weigh bridge weight. However, if the weighment at SSP‟weigh bridge is found to be more than the invoice/ challan weight, the payment shall be restricted to the challan / challan weight.

10.1 (for Imports): Third party Independent Inspection Agency, as per the DGFT approved list shall weigh the consignments mentioned against each Bill of Lading at the Load Port Weighbridges & certify the same. All Charges for the Load Port Inspection Agency will be borne fully by the Seller. However, for the purpose of payment, the weight as recorded at SSP‟s weight bridge shall be binding on both the parties.


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11.0 Meltdown Procedure, sampling and analysis::

i) Seller shall provide their test certificate, indicating the analysis of the Scrap.

ii) Seller shall also provide Third Party Inspection Certificate, certifying that the material

stuffed in the container (s) is as per the specification in the Purchase Order.

iii) Buyer reserves the right to test the Scrap at their works.

iv) The entire lot of the Scrap supplied by the Seller will be used in Electric Arc Furnace of

SAIL/SSP as charge.

v) Material acceptance / final payment will be made based on the melt chemistry after

melting the full quantity supplied under the particular lot.

The melting procedure that will be followed by the Buyer is as below:

a) Initially SSP Scrap (Preferably MS) of about 45-50 Mts (A) Shall be charged and melted in

the furnace.

b) On meltdown, samples shall be taken to assess the percentage of “Cr”& “Ni” (P1&Q1)

and for other elements.

c) Subsequently about 10-15 Mts(B) of stainless steel Scrap from the supplied lot shall be

charged into the furnace and melted.

d) On melt down, samples shall be taken to assess the percentage of “Cr”& “Ni”(P2&Q2)

and other elements.

e) The percentage of “Cr”& “Ni”in the stainless steel scrap is determined by the following

formula:-

“Cr”: (P2-P1)*A/B+P2=X , “Ni”: ( Q2-Q1)*A/B+ Q2 =Y

f) The following formula shall be adopted to determine the content of “Cr”& “Ni”in the

stainless steel scrap.

Chromium : 1.03*X

Nickel : 0.97*Y

Fe(Iron) : 94%-(X+Y)

Sampling & analysis

a) Analysis of the samples will be done in Optical Emission Spectrometer available at SSP,

in the presence of the supplier‟s representative, if present.

b) Seller /Supplier will be given advance information by the Buyer for deputing his

authorized representative to SSP, for witnessing the melting, sampling and analysis.

c) The entire quantity of the scrap will be melted in presence of the authorised

representative of the supplier. The melt analysis of SSP will be the basis for all purposes.

d) However, if the supplier disputes the analysis of SSP both the initial and final , the

sample can be re-tested at SSP Laboratory. The re-testing result will be final and binding

on both Seller and Buyer for all the purposes.

e) In case, if the supplier is not able to depute his authorised representative, the Buyer‟s

melt analysis will be final and binding on both the parties for all purposes.


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Seller / supplier will be given advance information by the Buyer for deputing his authorized

representative to SSP, for witnessing the melting, sampling and analysis. The entire quantity of

the scrap will be melted in presence of the authorised representative of the supplier. The melt

analysis of SSP will be the basis for all purposes. However, if the supplier disputes the analysis

of SSP, the sample can be re-tested in a Government of India Laboratory. The re-testing result

will be final and binding on both Seller and Buyer for all the purposes.

In case, if the supplier is not able to depute his authorised representative, the Buyer‟s melt

analysis will be final and binding on both the parties for all purposes.

12.0 Acceptance / rejection criteria:

a. In the meltdown analysis, the Scrap will be accepted without any penalty as per the

acceptance limit specified below:

Element Specification Acceptance Limit

Nickel 8.0 % Min 7.0 % and above

Chromium (Cr) 18.0 % Min 16.0 % and above

Lead (Pb) 0.025 % Max 0.050 % max

Tin (Sn) 0.025 % Max 0.050 max

Cobalt (Co) 1/45th of Ni 1/40th of Ni max

Copper (Cu) 0.50 % Max 0.80 % max

Molybdenum (Mo) 0.40 % Max 0.80 % max

Phosphorus (P) 0.045 % Max 0.045 % Max

b. If the analysis of the elements is beyond the acceptable limit and if the scrap is usable by

the Buyer, the buyer may consider to use the scrap with penalty.

c. The following are the maximum allowance with penalty for the trace elements:-

Cobalt (Co) Upto 1/30th of the Ni content with penalty of 5% of Purchase order

value of SS Scrap

Lead (Pb) Above 0.05% and upto 0.1% with a penalty of 5% of Purchase order

value of SS Scrap

Tin(Sn) Above 0.05% and upto 0. 1% with a penalty of 5% Purchase order

value of SS Scrap

Molybdenum(Mo)

& Copper(Cu)

Above 0.80% and upto 1% with a penalty of 5% of Purchase order

value of SS Scrap

d. In case the elements % goes beyond the acceptable limit even with penalty ,the decision

of Buyer (SSP) shall be final and binding

e. For all the elements, the average analysis of the full lot will be considered for

Acceptance / payment etc.,

13.0 Documents to be submitted:

i) by domestic suppliers:


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For provisionsl payment of 95 %, bills in triplicate should be submitted together with following

documents are to be submitted in Original to the paying authority. The number and date of order should be invariably quoted in the bills:

a. Signed material invoice. b. Challan / Packing list showing the package wise Gross and Net weight, if applicable. c. „Certificate of origin „issued by the local chamber of Commerce and Industry / Seller, as

per the requirement of Indian Customs Authorities. d. 3rd party Inspection Certificate along with the certificates like weighment certificate etc.,

as detailed at para 15 in Part-IV for direct import offers. e. The certificate from principal supplier in form 9 „Transboundary Movement

Certificate‟ required for scrap, if applicable. f. Certificate to the effect that material supplied are strictly as per the contracted

specification and size and quantity indicated in the Challan/ Packing List / Invoice is true / correct.

ii) By overseas suppliers ( for Imports)

a. Full set of clean shipped on Board ocean Bill of Lading for despatches by Sea consigned and bank endorsed to the buyer, freight paid (For CFR destination port contracts).

b. Signed material invoice showing the amount payable in foreign exchange (as contracted) after deduction of agency commission, if any indicating import under Exim Policy

c. Packing list showing the package wise Gross and Net weight, if applicable. d. „Certificate of origin „issued by the local chamber of Commerce and Industry / Seller, as

per the requirement of Indian Customs Authorities.

e. 3rd party Inspection Certificate along with all the certificates as detailed at para 12 below.

f. The certificate from principal supplier in form 9 „Transboundary Movement-

Movement Certificate‟ required for scrap. g. Certificate by the seller to the effect that action has been taken by the seller to inform

underwriter for marine Insurance against buyer‟s ope Insurance Policy. h. Certificate to the effect that material shipped are strictly as per the contracted

specification and size and quantity indicated in the B/L / Invoice is true / correct. i. Certificate to the effect that seller has sent three sets of non negotiable copies of the

documents to the buyer and their representative within 15 days of Bill of Lading . j. The seller must send a signed copy of document through International courier service

within 15 days of B/L date to the officer nominated. An advance copy should be sent through e-mail direct to SAIL/SSP also.

(All documents shall be in English Language)

14.0 If material is not as per the technical specification of the AT / Purchase order, and if SS scrap contains any trace of arms / ammunitions any explosive material etc or radioactive element, the material shall not be loaded and despatched. If any material received at the plants /units is found to be in deviation of the specification/ terms and conditions of order, the supplier will be responsible and liable for any claim / damage / financial implication etc including any legal penalty and shall replace material free of charge on DDP (SSP) basis with correct material on immediate basis.


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15.0 Shipment Tolerance: (+ / -) 5.0 %.

16.0 Weight tolerance: (-) 0.5% max.

17.0 Liquidated Damages- Liquidated Damages, not by way of penalty, @1% per month or part thereof subject to maximum of 5%, on the basic price of the materials (excluding taxes & duties) shall become recoverable and recovered from the supplier. Liquidated Damages shall be applicable on the qty. of materials delivered after the expiry of the delivery period mentioned in the purchase order. For indigenous suppliers, the date of receipt of material at SSP shall be considered as date of delivery. For overseas suppliers, the date of Bill of Lading (B/L) shall be considered as date of delivery.

18.0 RISK PURCHASE :

a. Should the seller fail to deliver the materials or any consignments thereof, within the period prescribed for such delivery, the Purchaser shall be entitled at his option to cancel the contract, either fully or partly, at the risk and cost of the Seller.

b. In the event of the Purchaser terminating the contract in whole or in part, the material may be procured on such terms and in such manner as deemed appropriate, materials similar to those so terminated, and the supplier shall be liable to the purchaser for any excess costs for such similar supplies. However, in case of part termination of the contract by the Purchaser, the supplier shall continue to perform the contract to the extent it is not terminated under the provision of this clause.

c. If the Seller fails to supply materials as per the delivery schedule, resulting in diversion of supplies, risk purchase action shall be levied on the defaulting Seller, to the extent of the quantity not supplied and additional freight incurred thereon, if any.

19.0 Conciliation : All disputes or differences whatsoever arising between the parties relating to or arising out of contract , shall be settled first by conciliation in accordance with the rule of conciliation of SCOPE and the settlements so rendered between the parties in pursuance thereof shall be final and binding on the parties. In case of failure of conciliation, the issue shall be settled as per Arbitration procedure detailed hereafter.

19.1 Arbitration: As per SAIL-P1. The bidders can download this document from the SAIL web site www.sailtenders.co.in. The venue for arbitration shall be Salem.

20.0 Bank Details: Tenderers are required to provide their bank account number, Bank name, city,

Branch name, Swift Code, IFC code etc., in their offer, enabling the purchaser to make payment through electronic mode.

21.0 Legal Jurisdiction & Governing law: The contract entered into between the Purchaser and the Supplier shall in all respects be governed by and interpreted in accordance with the Laws of Republic of India. In case of any legal dispute and all suits and legal proceedings by or against steel plants in any matter arising out of the tender, unless otherwise specified, the place of jurisdiction shall be the district court of the Purchaser where the steel plant is located.

22.0 General Terms & Conditions: Unless otherwise specified, General Commercial Terms &

conditions of the contract governing supply contracts of SAIL i.e. SAIL - P1 (refer

www.sailtenders.co.in) with latest amendments, subject to the extent modified in this RFQ,


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shall apply.

23.0 In case, clearance of consignment is delayed due to customs inquiry because of size, shape, other physical properties and physical appearance of the material etc., all the related costs will be debited to the supplier.

24.0 Performance Guarantee: The EMD submitted by the successful bidder (s) shall be retained as Performance Guarantee /

Security Deposit, till the supplies are completed successfully.


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PART -IV

ADDITIONAL CONDITIONS APPLICABLE FOR DIRECT IMPORT OFFERS

1.0 Offers should be submitted directly by overseas company participating in the tender. Authorised Indian Agents of overseas company can submit offer on their behalf, however order shall directly be placed on principal overseas supplier only. Indian Agent or their overseas principal can submit offer directly, but not both.

2.0 Indian Agents should quote on behalf of a single overseas supplier only who has authorized the Indian Agent to quote. The authorization letter of foreign principal to this effect along with a copy of the Agency Agreement indicating commission etc is to be provided. In case overseas supplier is not already registered with us they may get themselves registered as per procedure.

3.0 Agency commission due to the Indian agent, if any, shall not be included in the price. The same shall be paid to the agent by the Seller. Purchaser will not pay any agency commission.

4.0 Price should be quoted on CFR Chennai port basis as per INCOTERMS. This price will be inclusive of all costs, taxes & duties in seller‟s country. Price quoted shall also be inclusive of Packing charges & 3rd party Inspection Charges. The Seller shall indicate separately, the Ocean freight from FOB Load Port to Chennai Port considered in the CFR price. SAIL at its option reserves the right to place order on FOB load port basis after deducting ocean freight element from the finalized CFR price.

5.0 In case of order on FOB load port, Material should be handed over to SAIL/SSP‟s Freight forwarder/ nominated vessel. Freight charges from load port to discharge post, i.e. Chennai should also be indicated on per MT basis in techno-commercial bid. The tenderer should Indicate load port / dispatch port and the Country of Origin in their Techno-commercial Bid.

6.0 Phyto-sanitary (Fumigation) certificate to be provided for wooden materials as per Govt. of India Notification. The seller shall compensate the buyer for any loss sustained due to defective packing or marking of the goods.

7.0 Please furnish name and address of your Indian Agent, if any.

8.0 Indicate Custom tariff heading of item offered for the purpose of Custom Duty.

9.0 Material to be shipped in 20‟ (end opening) closed containers on FCL basis.

10.0 For Vendor status comparison/ Landed Price calculation, each FCL shall be considered for 20 MT materials.

11.0 3rd Party Inspection certificate:-

11.1 The consignment shall be inspected by third part inspection agency by any one of the agencies listed in the current foreign trade policy as per Annexure I to Appendix 5 of the current foreign trade policy.

11.1.1 The following certificates are to be submitted by the 3rd party inspection agency (i) certificate to the effect that the material is shipped is free from bombs, arms and ammunitions, shells, mines, cartridges or any other explosives, war head elements etc of any kind either used or otherwise, Radio Active materials etc as indicated in the pre-shipment inspection clause. (ii) weight certificate certifying the total quantity shipped on the vessel at load port in case of imports, and the total quantity despatched in containers at the place of dispatch, in case of domestic supplies.


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11.1.2 The inspection agency shall issue pre-shipment certificate in the letterhead of the office of Inspection Agency as mentioned in appendix- 5 of the „Foreign Trade Policy & Handbook of Procedures 2009-14‟ that material has been inspected prior to the stuffing in containers and containers have been stuffed in their presence.

11.2 In addition to the pre-shipment certificate as above, the third party inspection agency shall also submit a certificate certifying:

“The materials have been inspected with reference to the specification as per contract between SAIL /SSP and the seller.”

Test Certificates with exclusions like „quality / weight / contract terms‟ not certified etc shall not be acceptable.

Please note that : *Preshipment Inspection certificates from Inspection agencies debarred by DGFT/Customs/

any other statutory authority are not acceptable.

* All the certificates issued by the inspection Agency should be on the letterhead of the office mentioned in Appendix 5 of the foreign trade policy.

* The material shall be as per the specification and terms and conditions specified in Buyer‟s purchase order. The inspection agency shall clearly certify that they had inspected the scrap as per the specification and terms and conditions of the order.

( In case of any default, supplier shall be responsible for any consequence / charges as may be applicable)

12.0 Identity of Scrap: Practice followed at SAIL/SSP with regard to unloading / storing / stacking of the material shall be binding on the supplier and no dispute shall be entertained regarding the identity of the scrap. However, the supplier may choose to depute their representative at the time of each unloading/ storing / stacking of the consignments to SAIL/SSP, to ascertain the identity of the scrap.

13.0 Irrespective of the terms of delivery, i.e. FOB Port of Loading / CFR Port of Discharge, the successful bidder is responsible for the quantity of the material in each container / consignment. However, the quantity as recorded in the buyer‟s weigh bridge will be considered as final receipt quantity, subject to a tolerance of (-)0.5%

14.0 Sellers shall provide a certificate from the supplier, in original, certifying that consignment of metal scrap is not originated from the country affected by war / rebellion and the consignment doesn‟t contain any type of arms, ammunitions, mines, shells, cartridges, radioactive contaminated or any other explosives material in any form, either used or otherwise. They shall certify container wise gross tare and net weight and total quantity shipped.


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PART – V

Technical Specification for Stainless Steel Scrap

Country of Origin : USA / UK / Any European Country / Australia/Japan / South Korea / India / Singapore / Taiwan

Material Description:

a) Stainless Steel Scrap (SS Scrap / scrap) of AISI 300 series free from harmful contaminants.

b) The scrap should not contain any pressurized, closed or insufficiently open containers of any origin that could cause explosions in a metalwork furnace.

c) Stainless steel scrap shall be in the form of shredded scrap or bundled and scrap shall be delivered in container loads only

Weight & Size Each individual piece of scrap/bundle should be less than 500 Kgs in weight and size of 700 mm maximum at any side in any shape and in any form. Minimum Piece weight should not be less than 100 gm and the scrap should not contain turnings, borings, grinding dust etc.,

Quantity As per the RFQ, in Full container/ basis.

Quantity tolerance

+/- 5 % of ordered quantity.

Weight Tolerance

Minus (-) 0.5 % (max) of the weight indicated in the weight certificate for each container.

Packing In 20 ft. end opening container each containing 18 to 23 MT of Scrap. The Gross weight of the container including container weight should not exceed 25.0 MT in any case.

Certificate to be given by the supplier

* Test certificate mentioning the actual specification of the material shipped.

* Test certificate should also confirm that “the material is totally free from radioactive and mercury contamination”.

* The supplier shall provide the certificate containing invoice no, container

no, container seal no and quantity in each container.

* Certificate of Origin in triplicate duly certified, signed and stamped by the

Chamber of Commerce in the Country of Origin.

* Container-wise Weight Certificate in triplicate for total quantity against each

B/L (In addition to the certificate, if possible, container-wise weighment

tickets issued at the load port or weighment tickets from the Seller‟s yard will

also be provided).

* Packing List in triplicate showing net weight of materials, tare weight of the

container, gross weight of the container with materials and number of

containers.


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PART – VI (a)

(Fomat for submitting Taxes & Duties - for domestic supplies)

The bidders are requested to submit the applicable Taxes & duties and Credits available to the Purchaser / Buyer, as required in in the following format.

Since the price evaluation i.e., determination of the L1 (Lowest / Successful bidder) is based on the Landed Cost Net of Set-off (LCNS) basis, only the values of taxes & duties and Set-Off credits indicated by the bidders as furnished below will be considered for arriving at the LCNS prices.

After price bid opening, price evaluation and placement of order, the bidders will neither be allowed to change the taxes & duties (unless there is a Statutory change) during the currency of the contract / order nor the Set-Offs indicated herein. Hence, the bidders are requested to indicate all the applicable Taxes & Duties, with correct values (%) and without any ambiguity.

SN Description of the Tax Value in percentage (%)

1 Central Excise Duty & Education Cess -----------

2 Central Sales Tax (CST) ----------

3 Tamil Nadu Value Added Tax (TNVAT) ----------

4 (a) Any other taxes that may be applicable (to be specified by the bidder)

----------

4(b) -----------

5 Credit available to the purchaser against ED & Cess --------

6 Credit available to the purchaser against TNVAT --------

7(a) Credit available to the purchaser against any other taxes charged by the Seller.

----------

7 (b) ----------

Note: If the details of Taxes & Duties are not furnished by the bidder, evaluation of their offer will not be possible and hence, their offer will be rejected and will not be considered for evaluation.


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PART – VI (b)

(Price Evaluation Model- Imports)

Refer to Clause 22.0 of Part-II (Price Evaluation).

Model evaluation sheet for Imports

SN Description Unit Value

i CFR Chennai price for 18 % Cr & 8 % Ni SS Scrap (Fixed Price), as calculated as per Part-III, Clause 1.2 of this RFQ.

USD/MT 100

ii ADD: Financial Charges for payment terms other than CAD, if any (say)

USD/MT 2

iii Total CFR price ( i + ii ) USD/MT 102

iv EXCH RATE as on prev. date of price discovery (say Rs.54 / USD)

Rs/USD 54.00

v CFR VALUE RS./MT 5,508.00

vi INSURANCE AT 0.01233% 0.01233% 0.68

vii CIF RS./MT 5,508.68

viii LANDING CHGS @ 1% RS./MT 55.09

ix ASS. VALUE RS./MT 5,563.77

x CUSTOMS DUTY 2.5% 139.09

xi CV DUTY 12% 684.34

xiii CD + CVD Rs/MT 823.43

xiv CESS 2% ON CD & CVD 2% 16.47

xv CESS 1% ON CD & CVD 1% 8.23

xvi Total of Sl Nos. ix, xiii ,xiv and xv Rs/ MT 6,411.90

xvii SPECIAL ADDL.DUTY 4% 256.48

xviii TOTAL Price Rs/MT 6,668.38

xix Freight and C & F charges RS./MT 1,300.00

xx Total Price RS./MT 7,968.38

xxi Landed cost without Set Off RS./MT 7,968.38

xxii LESS: Cenvat Credit (Sl Nos.xi+xvii) RS./MT 940.82

xxiii Landed cost Net of Set Off (LCNC /LCNS) RS./MT 7,027.56

Note: Values in Sl Nos (i) & (ii) are assummed values; the actual evaluation will be based on the quoted & prevailing values respy. Percentages indicated for Insurance, CD, CVD, Cess and SAD are as applicable. The freight value is the actual value.


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PART – VI (c)

(Price Evaluation Model– for domestic supplies)

Refer to Clause 22.0 of Part-II (Price Evaluation).

Model evaluation sheet for Domestic supplies SN Description Unit Value i F.O.R Salem Steel Plant price for 18 % Cr

& 8 % Ni SS Scrap (Fixed Price), as calculated as per Part-III, Clause 1.2 of this RFQ.

Rs/MT 1,000

ii ADD: Financial Charges for payment terms other than CAD (say)

Rs/MT 15

iii Total Basic price (i + ii) Rs/MT 1,015

iv ADD: Excise Duty and Ed Cess (say @12.26%)

Rs/MT 125.45

v Total (iii + iv) Rs/MT 1,140.45

vi ADD: CST say @ 2 % (if applicable) Rs/MT 22.81

vii ADD: TNVAT --- % (if applicable) Rs/MT 0.00

viii ADD: any other taxes, if any Rs/MT 0.00

ix Gross Price before Cenvat Credit (v + vi + vii + viii)

Rs/MT 1,163.26

x LESS: Cenvat Credit (Sl No iv) Rs/MT 125.45

xi LESS: TNVAT Credit @ 88 % of 5 % (considered not applicable)

Rs/MT 0.00

xii LESS: Credit on any other taxes Rs/MT 0.00

xiii Landed Cost Net of Set Off (LCNS) Sl Nos.( ix -x - xi- xii)

Rs/MT 1,037.81

Note: The values in (i) and (ii) are assumed values only. The Taxes and duties are as applicable / as indicated by the bidder.


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FORM – I

RFQ Ref No: PU-T512002 dated 04.04.2014.

(To be submitted on Supplier‟s Letter Head)

Format for Acceptance of Commercial Terms, General Terms and Conditions and all other Terms of the RFQ

We _____________________________________________________________

(Supplier Name)

Having registered office at ___________________________________________

(address)

agree to all the Commercial, General & other Terms & Conditions listed in the

RFQ Ref No. PU-T512002 dated 04.04.2014, for procurement of Stainless Steel Scrap as per

the technical specification.

(Signature of authorized executive & Seal)

Place:

Date:


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Form-II

RFQ Ref No. PU-T512002 dated 04.04.2014.

(Please see Instructions to Bidders)

STATEMENT OF DEVIATION FROM SPECIFICATIONS AND BID TERMS

1) The following are the particulars of deviations from the requirements of the RFQ terms: CLAUSE/PARA DEVIATION REMARKS (including justification) We, hereby, declare that there are no deviations from the tender terms and conditions other than those mentioned above. Dated -

Signature and seal of the Bidder

NOTE: Where there is no deviation, the statement should be returned duly signed with an endorsement indicating "No Deviations"


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FORM –III (For Import)

(Please use this sheet to specify details for Direct Import offer By Overseas suppliers)


INSTRUCTION TO FILL UP FORM

1. Please use this form to specify details of bank account, Port of Shipment, Country of origin.

2. Please use additional space to provide relevant information.

3. Please fill up the blank spaces.

1. RECYCLER‟S NAME & ADDRESS:

2. ORDER TO BE PLACED ON: (Complete name & address of Beneficiary) 3. BANK DETAILS along with:

Bank Name & Address: Account Number. Swift Code:

4. QUOTED CURRENCY: 5. COUNTRY OF ORIGIN: 6. PORT OF LOADING: 7. TRANSHIPMENT REQUIRED: YES / NO (please specify) 8. PART SHIPMENT REQUIRED: YES / NO (please specify) 9. INDIAN AGENT‟S NAME & ADDRESS (If any): (Valid authorization letter in favour of Indian agent to be enclosed. However, Indian Agent Commission will

not to be included in the price)

Signature and seal of company


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FORM - IV

Format for Basic Information of the Vendor


Instructions to fill up the Basic Information: (i) Please use this worksheet to specify basic financial/ IR / Contact information; an authorized person

should sign the document at relevant section. (ii) Past Industrial Relations track record, please mention if there was closure/ cessation of work at any of

your plant(s) in the last 5 years. (iii) Use this form as Proforma/ Format. Use additional sheets to provide relevant information. (iv) Provide all the certified relevant documents w.r.t claims made in this Form.

1 Company‟s Name

2 Ownership Details

3 Manufacturer/ Distributor/ Dealer

4 Mention, if PSU/ Joint venture with PSU/ SSI Unit

5 Incase of PSU - Central PSU or state Govt. PSU

6 Incase of a Joint Venture, details of % wise equity holding

7 SSI Unit details, if applicable

8 ISO Status

9 Whether product is ISI Marked or as per ISI

10 Contact Person & Designation

11 Phone No.

12 Fax No.

13 E-mail

14 Financial details of Turnover & profit for the last 3 years

15 Major Manufacturing Capabilities

Sr. No.

Name &Address

Installed Capacities

Capacity Utilized

Present level Order booking

FY 1 FY 2 FY 3

16 The year of inception of the company/ business

17 Stocking points

18

Bank Account detail : Name & Branch Account Number

19 PAN No

I hereby certify that all information provided above is correct to the best of my knowledge.

(Signature, name & seal of the authorized person)


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EARNEST MONEY DEPOSIT - BANK GUARANTEE FORMAT

(On Non-Judicial Stamp Paper purchased in the name of the issuing bank, for value not less than Rs.100/=)

......................................................................................................................... (Name of the Bank) Address .....................................................................................................................................................

Guarantee No. .......................................

A/c Messrs ............................................................................................................ (Name of

Bidder) Date of Expiry ........................................

Limit to liability (currency & amount) ......................................................................................................

Invitation For Bid No / Tender Enquiry No......................................................... dated

...................................... For ................................................................................................................... (Name

of Facilities/materials)

Subject ... Bid Security Bank Guarantee.

Date .................................. 2012..

To ....................................................... Steel Authority of India Limited ....................................................... ....................................................... [Name and Address of Employer/Purchaser]

Dear Sir,

In consideration of the Steel Authority of India Limited, Salem Steel Plant, Salem, a company registered under the companies Act 1956 and having its registered office at Ispat Bhawan, Lodhi Road, New Delhi 110003, India (hereinafter called “Employer / Purchaser”) which expression shall unless repugnant to the subject or context include his successors and assigns having agreed to exempt M/s (hereinafter called “Bidder”) from demand under the terms & conditions of TENDER DOCUMENTS (hereinafter called the said “Bidding Document”) issued by the

Purchaser/ employer vide tender enquiry no: ………….. dated ………. for the works / supply of (Name of the Facilities/ Material) from deposit of Bid Security for the due fulfilment by the Bidder of the terms and conditions contained in the said Bidding Document on production of Bank Guarantee for Rs. / US$ (Rupees / US Dollars or any other currency approved by the Employer/Purchaser, as the case may be) ( only) (figure in words).

1. We the Bank Ltd. (Name of Bank)(hereinafter referred to as “Bank”) having our registered office at (address of Bank) do hereby undertake and agree to indemnify and keep indemnified the Employer / Purchaser / Purchaser to the extent of Rs. / US$ (Rupees or US Dollars or any other currency approved by the Employer/Purchaser) ( only)(figures in words) against any losses, damage cost, charges and


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expenses caused to or suffered by or that may be caused or suffered by the Employer/Purchaser by reason of any breach or breaches by the Bidder of any of the terms and conditions contained in the said Bidding Document and unconditionally pay the amount claimed by the Employer/Purchaser on demand and without demur to the extent aforesaid.

2. We Bank Ltd. do hereby undertake to pay the amounts due and payable under the guarantee without any demur merely on a demand by you stating that the amount claimed is due by way of loss or damage caused to or would be caused or suffered by you by reason of any breach by the said Bidder of any of the terms or conditions contained in the said Bidding Document by reason of the Bidder‟s failure to fulfil the conditions of said Bidding Document. Any such demand on the Bank shall be conclusive as regards the amount due and payable by the Bank under

this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs. .

3. We Bank Ltd. further agree that the Employer/Purchaser shall be the sole judge of and as to whether the Bidder has committed any breach or breaches terms and conditions of the said Bidding Document and the extent of loss, damages, costs charges and expenses caused to or suffered by or that may be caused to or suffered by the Employer/Purchaser on account thereof to the extent of the Bid Security required to be deposited by the Bidder in respect of the said document and the decision of the Employer/Purchaser that the Bidder has committed such breach or breaches and as to the amount or amounts of loss, damages, costs, charges and expenses caused to or suffered by or that may be caused to or suffered decision of the Employer/Purchaser that the Bidder has committed such breach or breaches and to the amount or amounts of loss, damages, costs, charges and expenses caused to or suffered by or that may be caused to or suffered by the Employer/Purchaser shall be final and binding on us.

4 We Bank Ltd. further agree that guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance on the said Bidding Document and that it shall continue to be enforceable till you certify that terms and conditions of the said Bidding Document have been fully and properly carried out by the said Bidder and accordingly discharge the guarantee. Unless a demand or claim under this guarantee is made on us in writing within two months of the expiry date i.e. on or before the we shall be discharged from all liability under this guarantee.

5. We Bank Ltd. further agree with you that you shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said Bidding Document or to extend time of performance by the said Bidder from time to time or to postpone for any time or from time to time any of the powers exerciseable by you against the said Bidder and to forbear or enforce any of the terms and conditions relating to the said Bidding Document and we shall not be relieved from our liability by reason of any such variation or extension being granted to the said Bidder or for any forbearance act or omission on your part or any indulgence by you to the said Bidder or by any such matter or thing whatsoever under the law relating to sureties would but for this provision have effect of so relieving us.

6. It shall not be necessary for the Employer/Purchaser to proceed against the Bidder before proceeding against the Bank and the Guarantee herein contained shall be enforceable against the Bank, notwithstanding any security which Employer/Purchaser may have obtained from the Bidder at this time when proceedings are taken against Bank hereunder be outstanding or unrealised.

7. We Bank Ltd. further undertake to unconditionally pay the amount claimed by the

Employer/Purchaser merely on demand and without demur to the extent aforesaid.


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8. We, the said Bank lastly undertake not to revoke this guarantee during its currency except with the previous consent of the Employer/Purchaser in writing and agree that any change in the constitution of the Employer/Purchaser or the Bidder or the said Bank shall not discharge our liability hereunder dated day of 200.. for Bank Ltd.

9. We have power to issue this Guarantee (under our Memorandum and articles of Association) and the

undersigned has full power to sign this Guarantee on our behalf under power of attorney dated ………………….

Granted to him / or the resolution dated ……………… passed by our Board of Directors in accordance with our

constitution Your faithfully

For ..........................................

(Name of the Bank)

Note : List of Eligible schedule commercial Banks for acceptance of BG s are as per enclosed. (These banks should have a branch at the place where plat/Unit is located ot at the place where the plant/unit has its unit office.


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List of Eligible Schedule Commercial Banks for acceptance of BGs

1 SBI AND ASSOCIATES PRIVATE SECTOR BANKS

2 State Bank of India 31 Federal Bank Ltd

3 State Bank of Bikaner & Jaipur 32 HDFC Bank Ltd.

4 State Bank of Hyderabad 33 ICICI Bank Ltd

5 State Bank of Indore 34 IndusInd Bank Ltd.

6 State Bank of Mysore 35 State Bank of Mysore

7 State Bank of Patiala 36 Jammu & Kashmir Bank Ltd

8 State Bank of Saurashtra 37 Karnataka Bank Ltd.

9 State Bank of Travancore 38 State Bank of Travancore

10 NATIONALISED BANKS 39 Karur Vysya Bank Ltd.

11 Allahabad Bank 40 Kotak Mahindra Bank Ltd

12 Andhra Bank 41 South Indian Bank Ltd.

13 Bank of Baroda 42 Axis Bank Ltd.

14 Bank of India 43 Yes Bank Ltd.

15 Bank of Maharashtra FOREIGN BANKS

16 Canara Bank 44 ABN Amro NV

17 Central Bank of India 45 American Express Banking Corpn

18 Corporation Bank 46 Bank of America

19 Dena Bank 47 Bank of Tokyo

20 Indian Bank 48 Mitsubishi Ltd

21 Indian Overseas Bank 49 Barclays Bank Pic

22 Oriental Bank of Commerce 50 BNP Paribas

23 Punjab National Bank 51 Citi Bank N.A.

24 Punjab & Sind Bank 52 Calyon Bank

25 Syndicate Bank 53 Deutsche Bank

26 UCO Bank 54 DBS Bank Ltd.

27 Union Bank of India 55 Corporation Ltd.

28 United Bank of India 56 JP Morgan Chase Bank N.A.

29 Vijaya Bank 57 Mizuho Corporate Bank Ltd.

OTHER PUBLIC SECTOR BANKS

58 Societe Generale

30 Industrial Development Bank of India

59 Standard Chartered Bank

60 The Hongkong & Shanghai Banking


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Annexure I

General Rules and Regulations governing conduct of On-line Reverse Auctions on the

mjunction platform and Terms and Conditions of the Buyer (SAIL/SSP)

INTRODUCTION The General Rules and Regulations provided herein govern the conduct of On-line Reverse Auctions operated by Mjunction.com Private Ltd. These rules cover the roles and responsibilities of the parties in the On-line Reverse Auctions

on the Mjunction platform. Acceptance in-toto to these General Rules and Regulations is a pre-requisite for securing

participation in the On-line Reverse Auctions on the Mjunction platform.

The key terms pertaining to the On-line Reverse Auctions are provided in the Annexure I. Prospective are advised to read

through the same.

Role of Mjunction Mjunction is the agency (operator) primarily providing the forum for conducting the Reverse Auction. As the agency providing the auction engine, the role of Mjunction would include:

input of the details of the auction items and defining of the bidding rules as desired by the client, market making and

training of prospective vendors

providing access to the approved vendors to participate in the auction. enhancing tenderer awareness of and comfort with the auction mechanism and bidding rules

summarizing of the auction proceedings & communicate the outcome to the Client

The responsibility for fulfillment of the contract rests between the tenderer and the client, and Mjunction shall have no

liability on this account.

Role of the Tenderer The role of the tenderer is outlined below:

The tenderer would participate in the Reverse Auction with the aim of bidding to secure the auctioned item in the

auction (being selected for supplying the client’s requirement in a Reverse Auction).

The tenderer would be provided access to the Auction through a User Id protected by a password. The tenderer needs

to ensure that the User Id and password is not revealed to unauthorized persons.

Access to the auction mechanism shall be provided to all the approved tenderer subsequent to obtaining their written

consent to the General Rules & Regulations.

In the event of winning an allotment in the auction mechanism, the tenderer shall commit to fulfill outlined

obligations under the contract.

Bidding Rules: The Bidding Rules refer to the information and terms defined specifically for a particular Reverse Auction. The purpose of

the Bidding rules is to provide approved tenderer with the information and terms specific to the auction in which they are

bidding. This would include:

Definition of the unit of bidding

Start Time and duration of the Reverse Auction

Any extension of the duration of the auction in the event of bids being received towards the end of the pre-

specified duration Reserve Price (if specified)

Minimum & Maximum Bidding Quantity (if specified)

Price Decrements and any reduction in the price decrements in the auction in the event of inactivity

Other attributes (informational/non-negotiable in nature)

Definition of the underlying supply contract (qty, delivery schedule, freight, insurance & local

levies) etc.

Participation in the auction process presumes complete awareness and understanding of the bidding

rules.


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Conduct of the Reverse Auction The Reverse Auction shall be communicated on pre-specified date. The key terms pertaining to conduct of the Reverse

Auction such as Preview Time, Start Time, Duration and End Time have been specified in the Annexure.

Mjunction retains the right to cancel or reschedule the Reverse Auction on any of the followings reasons:

The number of confirmed is deemed insufficient to conduct the Reverse Auction

Some of the confirmed tenderers are unable to access the module due to infrastructural problems such as sustained

power failure or telecommunication breakdown.

No bid shall be accepted which is above any start bid price, or

It is determined that one or more tenderers have submitted bids which are clearly below Cost. If the buyer decides so.

The duration of the auction may also vary from the pre-specified period of time on account of termination of the auction

by Mjunction:

a) on the advice of the client or

b) on its own accord in case of situations where it is felt that continuance of the auction proceedings is prejudicial to

the smooth conduct and / or the integrity of the auction process.

Problems during the conduct of the Reverse Auction In the event of any problems being faced in the smooth conduct of the auction, Mjunction shall have the right to undertake one or more of the following steps:

Cancellation/ premature termination of the Reverse Auction with/ without a subsequent rerun of the auction on a

mutually decided date

Cancellation of a bid

Locking a tenderer’s account (suspending operations of the account), etc.

Liability of Mjunction Mjunction shall not be liable to the client/ in the auction or any other person/s for:

any breach of contract by any of the parties in the fulfillment of the underlying contract

any delays in initiating the On-line auction or postponement/cancellation of the On-line auction proceedings due to

any problem with the hardware/ software/ infrastructural facilities or any other shortcomings.

Confidentiality Clause Mjunction undertakes to handle any sensitive information provided by the client or confirmed for the Reverse Auctions with utmost trust and confidentiality.

Jurisdiction Any disputes relating to the On-line auction module shall be subject to the sole jurisdiction of civil courts of Kolkata only

to the exclusion of any other court.

Right of the Client SAIL/SSP reserves the right to fully/ partly accept the bids or completely reject the same.

Acceptance to the Rules and Regulations :

We have gone through the general rules and regulations and confirm our acceptance to the same. We have also gone

through and fully understood the product specifications and other terms and conditions specified by SAIL/SSP enclosed

herewith.

Signed in acceptance of all the terms and conditions listed in Annexures I and II.

Signature : Date :

Name :

Place :

Designation :

Attested with Company Seal

Contact details (incl contact e-mail ID) of the company seeking to participate as a Tenderer in Reverse Auction.


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Mjunction retains the right to extend or cancel or reschedule the reverse auction on any of the following reasons:

Sl Circumstance Action

01 Auto Extension Of Bidding Time

ONLY in the event of any bid being placed in the last 3 minutes

of the scheduled bidding time, the bidding time shall

automatically extend by 3 minutes from each such bid. This Auto

Extension mechanism remains activated until a continuous inactivity

period (i.e. no bids being placed by any bidder) of 3 minutes is

reached at which point the market shall close. 02 Cancellation of event /

bid 1. The number of confirmed bidders is deemed insufficient to conduct the reverse auction. 2. On Advice of the Buyer 3. MJ on its own accord - in case of situations where it is felt that continuance of the auction proceedings is prejudicial to the smooth conduct and/or the integrity of the auction process. 4. Cancellation/ premature termination of the reverse auction with/ without a subsequent rerun of the auction on a mutually decided date between Client and MJ. 5. Cancellation of a wrong bid 6. Locking a bidder‟s account (suspension of operations in the account) 03 Poor Participation 1. Manual extension carried out if less than 10 bids received. 2. Reserve / expected price not met. 3. It is determined that one or more bidders have submitted

bids which are clearly below Cost. 4. On the advice of the Buyer.

04 Unable to access the module due to infrastructural problems - Internet Problems being reported by bidders

1. Manual extension carried out till connectivity restored or MJ will bid on behalf of bidder after obtaining suitable authentication.

2. The number of extensions and the time involved in each extension is on the judgment of the auction controller concerned.

05 MJ server not able to connect to the Internet cloud

To the extent possible, all auctions will be extended until the problem is resolved/ internet connectivity of MJ machine improves. Ability to extend depends upon time available, as also ability of MJ staff to connect to the MJ machine.

06 Power failure/ Planned power shutdown in his area reported by an interested supplier

MJ will bid on behalf of bidder after obtaining suitable authentication. (The party will inform his minimum price and will also inform his user id and password). Manual extension may be involved if the call is received just before closure, and MJ staff does not have sufficient time required to make a bid.

At the request of the Client, Mjunction may permit bidding through a combination of online and offline means (offline means including phone/fax/email). However in such event, Mjunction would not be responsible for any errors in transmission or entry of the information received in the offline medium. It must be expressly understood that such facilities if and when extended are only for the convenience of bidders and, while reasonable care and caution shall be taken by Mjunction, the ultimate responsibility for the same shall rest with the bidder/s.


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DEFINITION OF KEY TERMS Reverse Auction: Reverse Auction refers to a forum where the requirement for one/ more Markets of an item is stated and the

participants are required to bid down the price to be selected to supply the requirement.

On-line Reverse Auctions On-line Reverse auctions refer to those Reverse Auctions conducted through the Internet with simultaneous bidding (from one or more locations). In other words, the venue for the auction is on an Internet website/ platform. The

Mjunction website (http://www.buyjunction.in ) or any other URL assigned by mjunction would constitute the

venue for the purpose of the On-line auction.

Award at the Reverse Auction The tenderer quoting the lowest price is normally allotted the item unless otherwise specified by the Client.

Client Client is the individual/business entity who has contracted Mjunction to conduct such Reverse Auction. In

case of Reverse Auction, the purpose would be to meet their requirement for item/s from among the sellers desiring

to sell the items to the Client.

Tenderer Tenderer is the individual/business entity participating in the Reverse Auction, intending to supply the item/s to

the Client. To become a Tenderer in the auction, a business entity has to secure client approval for participation and also

provide written assent to the General Rules and Regulations

Auction Engine Auction Engine refers to the software that encapsulates the entire auction environment, processing logic and information flows. Mjunction is the sole owner of the auction engine and retains exclusive right over the utilization of the

same.

Preview Time Preview Time refers to the period of time that is provided prior to the commencement of bidding. This is to facilitate approved participants to view the auction details such as item specifications, bidding details and bidding

rules. The purpose is also to familiarize participants with the functionalities and screens of the auction

mechanism. It is not mandatory for Mjunction to provide Preview Time.

Start Time Start time refers to the time of commencement of the conduct of the On-line auction. It signals the commencement of the

Price Discovery process through competitive

bidding.

Duration of the Reverse Auction It refers to the length of time the price discovery process is allowed to continue by accepting bids from competing

tenderers. The duration of the auction would normally be for a pre-specified period of time. However, the

bidding rules may state the conditions when the pre-specified duration may be extended/ curtailed. The conditions

include:

Curtailment of auction duration in the event of no bids for a specified period of time

(Inactivity Time)

Automatic extension in the event of bids being entered towards the end of the scheduled duration to

facilitate the other tenderers to view and react to the bid.


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Auto Extension of the Auction Timings In the event of bids in the last few minutes of the scheduled bid time, the Bid Timings are automatically extended for a specified period from each such bid. Such Auto Extension shall continue until no bids are placed for the

specified period (Engine remains inactive for the specified period). The Inactivity Time for Auto Extension

purpose is normally 3 minutes. Mjunction however retains the right to change the same in consultation

with SAIL/SSP. The Inactivity Time applicable for the particular On-Line Bid shall be communicated to the

tenderer if it will be set to a value less than 3 minutes.

End of the Reverse Auction End of the Auction refers to the termination of the auction proceedings signaling an end to the price discovery process.

Auction Report Mjunction would provide an Auction Report to the Client containing a summary of the auction

proceedings and outcome. The Auction Report would constitute the official communication from Mjunction to the client

about the outcome of the Reverse Auction.

ID and Pass Word - Pass Word and ID shall be given to all the eligible vendors by the Service Provider for

enabling the vendor to participate in the Reverse Auction.

Start –Bid Price – Start Bid Price is the estimated Price of a lot decided by SAIL/SSP. This is the Maximum

Price, which will be accepted by the Reverse Auction engine. Supplier have to quote a price lesser than the Start

Bid Price for participating in the Reverse Auction. The computer shall not accept Price higher than Start Bid

Price for a lot. Bidding will start at start Bid Price to be intimated in advance to the vendors eligible for

bidding. This will be put up on the site and will also be communicated in advance through Fax/ email.

Minimum Decrement- Minimum decrement is the minimum amount a supplier has to reduce in order to beat

a higher bid. For example, if a tenderer bids Rs 10,00,000/ - for a Market, others, in order to beat this bid, have

to quote a lower price with a minimum decrement say of Rs 100/- i.e. in order to be eligible they have to quote

Rs. 9,99,900/- (or lower) for the same Market. This minimum decrement shall be pre-decided by Steel

Authority of India Limited and will be in- built and displayed in the computer.

PROXY BID- In the following circumstances, a tenderer may opt for proxy bidding.

Where the tenderer is not confident of a reliable Internet Connectivity

Where the speed of Internet Connection is slow and unable to catch-up with the speed of competitor’s

bids.

To remain a leading tenderer till the lowest bid value fed in the auction machine.

Where the tenderer is required to put bids in more than one Market/Lot at a time

Following is the outcome when a tenderer exercises the

proxy option:

A proxy bid remains L1 till the lower bid value fed in the auction machine is exhausted i.e. a lower bid, less than

the lower bid value offered by the tenderer exercising the proxy, is offered by another tenderer. If a tenderer bids

a price equal to the lower limit of the proxy bid, the proxy tenderer gets precedence over him at that price.

To let the system place bids on your behalf you need to check (click) the proxy bid box on the bidding details

page and place the lowest value to which you can bid and then place submit button and confirm. Once the

proxy is activated the bids are placed automatically as per the minimum decrements. The lowest value of your

proxy bid amount is not visible by any other tenderer.

Example : Suppose, the current bid in the market is Rs.10000 and the min. decrement is Rs.100 and you have

activated proxy till Rs.9500. Now say a tenderer places a bid of Rs.9800, the system automatically bids Rs.9700 on your behalf at the same time and keeps you as a leading tenderer.


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FORM - A

(To be submitted on Supplier‟s Letter Head)

Format for Acceptance of General Terms & Conditions, Commercial Terms and all other Terms of the Reverse Auction

We _____________________________________________________________ (Supplier Name)

having registered office at ___________________________________________ (Address)

agree to all the Commercial, General & other Terms & Conditions listed in the Enquiry No._____________________________________________ dated___________________________________________ for procurement of ______________________________ (item) through Reverse Auction. We confirm that we are in a position to supply material as per the specification given in RFQ. We have also understood the Reverse Auction Process and the Reverse Auction rules and special instructions given in the RFQ. We agree to participate in the Reverse Auction and abide by the rules.

We nominate an executive, whose details are given below, to put the bids on our behalf.

The details of the person authorized to bid on our behalf is as follows. Name & Designation : E-mail ID : Contact phone nos. : Address :

(Signature & Seal)

Place :

Date :


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FORM - B

Format for submitting last quoted prices (To be submitted on Company Letter Head of the Bidder)

(To be sent within 30 mins of conclusion of the Reverse Auction)

To, MJunction services limited Godrej Waterside Tower 1, Block DP, Plot-5, 3rd Floor, Salt Lake Kolkata- 700091 Fax: 033 – 66011725 Ref: Reverse Auction for …………………for Salem Steel Plant held on ………….. Reference above, we hereby confirm our Market wise last quoted prices in the Reverse Auction held on …………….. for ………………for Salem Steel Plant.

Market No. Last Quoted Price

We also confirm that we will submit item wise price break-up, within two working days from the date of Reverse Auction. Signature : Name : Designation : Date :


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FORM - C

Authorisation to bid

Dy General Manager – I/c (MM) Salem Steel Plant, Salem – 636 013 Phone: 0427 – 2385001 /2382257/2382457 Fax: 0427 – 2383240, E-mail: [email protected]

The details of the tenderer authorized to bid on our behalf is as follows.

Name :

Designation :

e-mail ID :

Contact phone no :

Address :

Acceptance to the Rules and Regulations:

We have gone through the general rules and regulations and confirm our acceptance of the same in toto.

Signed & Stamped in acceptance of the terms & conditions

Name : Designation of Signatory :

Organization : Contact Phones :

Date & Place :

For further clarifications regarding Reverse Auction please contact:

Corporate Office Chennai Office

Mjunction services limited Godrej Waterside Tower 1, Block DP, Plot-5, 3rd Floor, Salt Lake Kolkata- 700091 Ph. : 033 – 66011721 to 1725

Fax: 033 –66011719

Mjunction services limited Basement, New No. 91,Old No.44, Armenian Street, Chennai 600001 Fax: 044-25216536

Contact Persons Corporate Office Ms. Monalisa Shah

Mobile No. 9163348297

Direct No.033 -66011730

e-mail: [email protected]

Chennai Office Mr. Thiruvalluvan.K Mobile :8056111993 E-mail: [email protected]

Mrs. R. Uma Ph.: 044-64624733/34/35 E-Mail: [email protected]