Invitation for Bids

Udayapur Cement Industries Ltd

Re-Invitation for Bids for Inspection/Audit for Ropeway and Primary Crusher

Contract Identification No: Re-T.No.75-1/073/74

Date of publication: 2074-04-13 (2017/07/28)

1. Udayapur Cement Industries Ltd re-invites sealed bids from eligible bidders for the procurementof Inspection/Audit for Ropeway and Primary Crusher

2. Eligible Bidders may obtain further information and inspect the bidding documents at the headoffice of Udayapur Cement Industries Ltd, Head office of Udayapur Cement Industries Ltd, JaljaleUdayapur. Telephone No 035411012, Email: procurement@ucil.org.np

3. Bidding documents may be purchased from the above office of Udayapur Cement Industries Ltd,Procurement Department, Phone: 035-411012, Email: procurement@ucil.org.np by eligibleBidders on the submission of a written application, along with the copy of company/firmregistration certificate, and upon payment of a non-refundable fee of Rs.3000.00 or the bidderhas to furnish a deposit voucher of the same amount deposited in the bank account ifdownloaded from the eprocurement website

4. Two sets of Sealed Bids (Original + Copy) must be submitted to the above office of UdayapurCement Industries Ltd, Procurement Department, Phone: 035-411012, on or before 14:00 hourson [2074-04-27 [2017-08-11]. Bidders who have submitted their bids electronically must submithard Copy of within 7(Seven) days from the date of bid opening. Documents received after thisdeadline shall not be accepted.

5. Bids shall be opened in the presence of Bidders' representatives who choose to attend [15:00[2074-04-27 [2017-08-11]. at the office of Udayapur Cement Industries Ltd, Udayapur, Jaljale. Bidsmust be valid for a period of 90 dayscountingfrom the day of bid opening and must beaccompanied by bid security, amounting to a minimum of 2.5 % of the quoted Bid amount(Exclusive of VAT), which shall be valid for minimum 30 days beyond the bid validity period.

i. Sunrise Bank Ltd, Udayapur Branch Jaljale, Udayapur 02910096430012ii. Global IME Bank Ltd., Udayapur Branch. Gaighat, Udayapur 2201010000167

iii. NIC Asia Bank Ltd., Udayapur Branch. Gaighat, Udayapur 4041230167524001iv. Rastriya Banizaya Bank Ltd. Gaighat, Udayapur 209000053601v. Nepal Investment Bank Ltd Gaighat, Udayapur 03501040250283 or in any

convertible currency in the form of bank draft in favor of the UCIL

6. If the last date of purchasing, submission and opening falls on a government holiday then the nextworking day shall be considered the last day. In such a case the bid validity and bid security validityshall be recognized with effect from the original bid submission deadline.

7. The Employer reserves the right to accept or reject, wholly or partly any or all the bids withoutassigning reason, whatsoever.

Re-TenderID No

PackageNo.

Description ofgoods

Qty BidDocumentfeeNRS.

Bidsecurity inNRs.

75-1/073/74

As pertender

Invitation for Bids forInspection/Audit forRopeway and PrimaryCrusher

as pertender

3000.00 2.5 % ofthe quotedBidamount(Exclusiveof VAT)

UDAYAPUR CEMENT INDUSTRIES LIMITEDHEAD OFFICE ,JALJALE, UDAYAPUR, NEPALPHONE : 00977-35-411012

Website: www.ucil.org.np.

Email : procurement@ucil.org.np

1. Background

Udayapur Cement Industries Ltd (UCIL) is a fully Government owned industry in Nepal, established on31Jestha, 2044 (14th June, 1987) with financing from OECF-Japans assistance – JY 18,770 Million andNRs 450 million equity share of Nepal Government. The construction period of UCIL was Sept 1989 toOct, 1992 and the commencement of the commercial production started in Jan 1993. The productioncapacity of UCIL is 2, 77,200 MT Cement per Year. UCIL is located in Udayapur District of eastern region.The plant was commissioned in January 1993 with a target of 800 TPD clinker production andcommercially started in the same year with 277,000 MT Cement production per year.

Udayapur Cement Industries Ltd (UCIL) was commissioned in January 1993 with a target of 800 TPDclinker production and according to the design expectations supports production of 900 TPD. The plantoperation is not stabilized to reach the maximum production capacity and the run factor is low. Themain problem of the cement industry is low production and high energy consumption. It is also need feltto refurbish, replace plant and process equipment.

2. Problem Statement

Problem statement

The Plant has its own mining facility at about a distance of 27 kms. The mining potential of the quarrysite is nearly 70 million tonnes deposit of high grade limestone. Limestone extracted from the mine iscrushed into small sizes with the help of primary crusher, and then the crushed limestone istransported to plant through aerial ropeways where it is further crushed into small size in secondarycrusher. Some major drives of quarry section are mentioned below.

Primary crusher main motor 400 kWBelt conveyor no 1 19.5 kWBelt conveyor no 2 19.5 kWRopeway main motor 300 kWRopeway belt conveyor 26 kWRopeway compressor motor 11 kW

Despite being operated for almost 27 years no major technological upgrade has been done for theRopeway and the Primary Crusher, it now becomes imperative to seek for expert observation in

determining the state of the ropeway and primary crusher and thus recommend ways to refurbish andreinstate these infrastructure for a long period of operations in future.

Purpose of the Work

The main purpose of this assignment is to perform a Technical Audit to establish plantcapabilities focusing the Ropeway and the Primary Crusher.

This assignment demands review of ropeway and primary crusher equipment todetermine their operating capabilities and efficiencies with relation to original design andto subsequent modifications.

The current performance of both the sections should be compared to what is realisticallyachievable and for the purpose rated or guarantee capabilities should be takenuncritically.

The purpose of this assignment is also is to establish the efficiency with which theropeway and primary crusher are operated and to identify bottlenecks and to proposemeans of eliminating by a feasible recommendation elucidating the areas concerning theaforementioned problems and recommending technical and operational solutions toensure longevity of the ropeway and primary crusher section for future operations andscalability also.

3. Scope of Work

General Scope of Work

a) To determine factors necessary to operate the Ropeway at 4.5 m/secb) To determine factors necessary to operate Crusher to operate at 300 ton/hour

These two general scope of work accommodates the following

Health assessment of all ropeway, aerial/material handling system mechanicalequipment, machineries and equipment in Primary Crusher Section

o Root cause failure analysis/ Failure mode analysiso Identify the failure mode and all the consequences on the system, related systems,

process, related processes and serviceo Checklist for all ropeway parts and equipment based on equipment criticalityo Ropeway and related equipment/parts health

o Maintenance KPIso Reliability centered audit for Mechanical Equipment and their healtho Maintenance Organizationo Supply chain management inspection and audit (spares and inventory)

Electrical & Instrumentationo Current electrical health of plant equipment for the two sectionso Level of automation and monitoring available Review the level of equipment

information available in terms of manuals, drawings, historical information etc.o Review the level and use of best practices and engineering standards. Detail any

deficiencies, recommend corrective actions and estimate budgetary requirementsto implement corrective actions.

Specific Scope of Work

The audit process is to be performed using documented performance objectives and guidelinesrepresenting typical "industry standards". While the performance objectives are broad in scope,the evaluated standards are more specific, focusing upon individual equipment, practices.UCIL’s existing Maintenance and Operation Programs and Procedures are to be audited forcompliance with global Standards. If deficiencies are identified, the consultant shall prepare acorrective plan for compliance and assist the management to make the necessary modificationsto the plant's maintenance and/or operations programs.The specific scope of this assignment has been divided into two parts as follows:

SN Areas Scope of Work

PART 1 Ropeway a) To audit the functioning ofelectrical andinstrumentation equipmentincluding (but not limitedto) communication system,PLC etc

b) To audit tower Structure,Welding, Rusting, Trusscondition

c) To inspect and audit otherareas of ropeway like

i) Drive/Non Drive rollerCondition

ii) Main Drive Geariii) Chain Driveiv) Accelerator Drivev) Hydraulic Systemsvi) Shadal Conditionvii) Guide Rollerviii) Ropeway Drum

Horizontal/Verticalposition

ix) Condition of HaulageRope, Track Rope,Grip/Bucket etc

d) Inspect the condition ofOld and New Ropes

e) Inspect the condition oftwo bucket ropes

f) Recommend spare partsneeded to reinstate, restoreelectrical and mechanicalequipment for operationallongevity

PART 2 Primary Crusher a) To inspect and audithammer teeth, Drive/NonDrive Drums, bodycondition, welding etc

b) Inspect condition ofCrusher main motor, V-Belt etc

c) Inspect condition of chain,moving as well asnonmoving parts

d) Inspect belt conveyorse) Recommend spare parts

needed to reinstate, restoreelectrical and mechanicalequipment for operationallongevity

With reference to both the sections the consultant must also ensure.Current health of Electrical & Instrumentation; Level of automation andmonitoring avail; Review the level of equipment information available in terms ofmanuals, drawings, historical information etc.; Review the level and use of bestpractices and engineering standards

4. Qualification of Bidder and Documents Required

Udayapur Cement Industries Limited proposes to utilize audit for the evaluation of tenders forthe Technical Audit of the Ropeway and Primary Crusher. The audit shall combine bothsubjective and objective analysis into one final ranking for each submission. This ranking willform the main evaluation for the bid packages; however, this may then be merged with otherreviews to arrive at the best final selection.

a) The Bidder shall have a minimum of last eight (8) years overall experience in the supplyof related services and/or experience in constructing Aerial Ropeways, materialhandling system, project engineering of manufacturing industries (cement, coal etc)

b) Bidder has to demonstrate proven evidence of work of similar nature. The bidder mustshow evidence of either consulting or solution oriented work from inception and designto commissioning and/or execution of turnkey projects particularly with state ownedinfrastructure or industry of similar kind (minimum two such assignments)

c) The bidder must have an ISO 9001:2008 Certification

d) The bidder must also attach a technical proposal/work plan and should specify the directtechnical engineers/supervisors and other technical personnel (designated for work)considered key to the successful accomplishment of the Scope of Works objectives. Itshould also indicate the percentage of the total time each individual will be available for

this program.

e) It is essential that resumes be included for each of the key personnel describing theireducation, background, recent experience and scientific or technical accomplishments.Included should be a list of professional staff by discipline with experience/ jobscompleted in the last 5 years.

f) Selection of the preferred vendor will also be based on, but not limited to the following:

Project Management Experience and Expertise

Time, Cost and Quality record on past jobs

Safety Records on past projects

Flexibility of additional resources to respond to project needs.

Financial Standing

Professional links with International Firms, state/government clients

References from Clients, Awards/Recognition

Cost proposed for the assignment

Responsiveness of the bid

g) The bidder shall submit The Certificate of Incorporation/ Registration of Firm

h) PAN/VAT Registration, Audited financial reports of last three years

i) Tax Clearance of last three years

j) The bidder may associate with other firms in the form of Joint Venture or a subconsultancy/contracting. The nature of association should be mentioned in the biddocument and minimum 3 firms

k) Joint Venture Agreement and Power of Attorney document (For a Joint Ventureassociation the JV firm should be duly registered for PAN/VAT before contract signing)

l) Bid Security of 2.5 % of the quoted Bid amount (Inclusive of VAT), which shall bevalid for minimum 30 days beyond the bid validity period, in case of bank guaranteefurnished by banks from outside then a counter guarantee has to be provided from aClass “A” commercial bank from Nepal

m) CV’s of Resources with relevant qualifications and experience is mandatory

n) Experience and relevant details of other resources should also be furnished

5. Resources List

Consultant’s Personnel Required

The consultant shall appoint a suitably trained and experienced Audit team subject to the approval ofUCIL. The team shall include a team leader that shall supervise the consultant’s team at all times andserve as a single point of contact with UCIL.

Key Technical Personnel

The technical proposal should include a description of the Audit group proposed for the accomplishmentof the objective of this tender. The information provided should include qualifications, recentexperience with similar programs & the position of the group within the overall organization.

It is mandated that the resources pool constitute of:

a) Ropeway Engineer and/or Civil engineer with experience on Ropeways, Aerial Materialhandling system- Experience of 8+ years (1 Nos) and relevant Project Managementexperience

b) Mechanical Engineer- Experience of 8+ years (1 Nos), experience inCement/Manufacturing Industry

c) Electrical/Electrical Instrumentation engineer- Experience of 8+ years (1 Nos) experiencein Cement/Manufacturing Industry

Additional resources may be proposed as deemed necessary for the assignment. Individuals nominatedand accepted for this contract are expected to remain dedicated to the contract. Substitution will onlybe accepted if specifically agreed upon by UCIL. Throughout the execution of the audit and as longthereafter as is necessary to fulfill the consultant’s obligations that all necessary superintendence toplan, arrange, direct, manage and inspect the said operation covered by this agreement.

6. Deliverables

Deliverables Due Date RemarksInception Report 1 Week from the date of

contract2 copies

Draft Report 5 Weeks from the date ofcontract

3 copies

Final Report 8 Weeks from the date ofcontract

3 (hard + soft) copies

The reports must include qualitative, quantitative analyses and photographic report/diagrams detailingthe following:

Problems Rectified:

Outlines UCIL’s current situation in terms of the problems identified their Key issues andcauses

As built documentation (ropeway, mechanical, electrical, instrumentation and processetc)

Key marked up drawings detailing the improvements required. Additional instrumentation, control loops and automation problems/recommendations

Solutions and Future Project Recommendations

The report should also essentially recommend CapEx projects for reinstating,improvising the Ropeway and Primary Crusher infrastructure and determine the target ofsuch projects: including Modified SOPs, equipment checklists

Short term recommendation with investment (minimum possible) for Optimization. Long term recommendation with capital investment Plant Modernization / Capacity Enhancement Projects considering Energy conservation

and Environmental improvement projects that should be accommodated for the ropewayand Primary Crusher section

Other recommendations

Priority rating, risk assumptions of solutions to be implemented Future Project Plan for Short Term and Log Term Recommendations including timelines

and resources required

The above scope of work is divided into the following Pre audit activities, two work orders and reportingstage

Work Order 1:

Technical Audit of the Primary Crusher: Capacity 300 T/hr

Work Order 2:

Technical Audit of the Ropeway: Capacity 200 T/hr

ITEM DESCRIPTION Remarks

NO.

1 Pre-audit Activities:

2 Audit Stage:

Work Order 1

Work Order 2

3 Report Stage:

Work Order 1

Work Order 2

7. Work Induction and Start

Work Induction and Start

The successful consultant will be required to furnish a program of activities within ten(10) days after award of contract.

The Consultant shall familiarize themselves with the safety requirements of the existingplant operations and shall give every facility to the authorized safety officers of theEmployer, to inspect the works when so ever required, and shall observe and abide byany instructions given by the Engineer in regard to the use of plant, equipment andtemporary works, whether in respect of fire hazards or general safety.

The consultant is required to state clearly the deliverables for each phase as stated in theFee structure.

The consultant must complete the project in the stipulated time frame of eight (8)continuous weeks from commencement of works.

All reports must be completed using Microsoft Word with colored photos/diagrams andsubmitted on CD.

The audit process is to be performed using documented performance objectives andguidelines representing typical "industry standards" and deficiencies if found andidentified, should be reported to the plant's maintenance and/or operations programs

The successful consultant will be required to submit to UCIL three (3) hard copies and(3) soft copies of the final approved report and drawings within Eight (8) weeks ofcompletion of the audit.

The consultant shall be required to attend a post audit meeting to explain the results to themanagement and audit team.

8. Safety Precautions

Safety Precautions:

The Consultant shall obtain all necessary work permits from UCIL.

The consultant all employees who work at the site, or visit the site are required to attend asite safety briefing to be conducted by UCIL.

The consultant has to submit his safety plan included in the inception report to UCIL forapproval. The document must be submitted within one week from the date of signingcontract, the safety plan shall be scrutinized and approved by UCIL.

The Consultant shall provide and maintain upon the works sufficient and proper first aidappliances, which shall at all times be available for use.

The Consultant shall also provide adequate insurance coverage for, third party risks,public liability for the staff/consultant assigned and shall satisfy all other statutoryrequirements. Copies of all such policies shall be made available for inspection by theCompany at all times upon request. A copy of such policy would be lodged with UCIL’sGeneral` Manager.

The Consultant shall be liable for and shall indemnify the Company against any expense,liability, loss claim or proceedings whatsoever arising under any statute or at commonlaw in respect of property damage and/or personal injury to and/or the death of anyperson whomsoever arising out of or in the course of or caused by the carrying out of itsobligations under this Agreement, and provided always that the same is due to anynegligence, omissions or default of the Consultant its servants or its agents.

9. Insurance

The bidder must insure all its staff for accident. During the assignment period for loss or damage toproperty and life arising from a cause for which contractor is responsible. ii) For loss or damageoccasioned by the Contractor in the course of any Repairs carried out by him for the purpose ofcomplying with his obligations. It shall be responsibility of contractor to notify the Insurance Company ofany change in the nature and extent of the works and to ensure the adequacy of the Insurance cover atall times during the period of contract.

10. Damage to Persons and Property:

The Contractor shall, except if and so far as the Contract provides otherwise,indemnify the Employeragainst all losses and claims in respect of:

(a) Death of or injury to any person, or

(b) Loss or damage to any property (other than the Works): Which may arise out ofor in consequence ofthe Repair and Maintenance of the Works and the remedying ofany defects therein, and against allclaims, proceedings, damages, costs, charges andexpenses whatsoever in respect thereof.

11. Compliance with Statutes, Regulations etc.:

The Contractor shall conform in all respects, including by replying to all notices and the paying of allfees, with the provision of:

Thegovernment lawand any applicable regulation in relation to the execution andcompletion of theworks and the remedying of any defects therein

12. Time for completion:

The Repair and Maintenance work shall be for a period of eight weeks or as mentioned in the letter ofcommencement and shall start from the date issue of letter commencement.

13. Defect identification and its rectifications:

Agency shall immediately attend the defects and complaints noticed / reported at site. The agency shallprovide and develop a system for regular Repair and Maintenance of all the services which includesdefect identification and its immediate rectification so, that services are not affected.