THE SHIPPING CORPORATION OF INDIA LTD. (TECHNICAL & OFFSHORE SERVICES) SHIPPING HOUSE, 5TH FLOOR, 245, MADAME CAMA ROAD, NARIMAN POINT, MUMBAI – 400021 Email:[email protected] Phone: +91-22-2277 2182; Fax: +91-22-2285 4790
No: T&OS/NB/UTLA/500PAX/2019 October 18, 2019
INVITATION OF TENDER: INSTRUCTIONS & CONDITIONS OF THE TENDER FOR “ACQUISITION OF ONE 500 PASSENGER ALL-WEATHER VESSEL FOR UTLA”
1. The Shipping Corporation of India Ltd. (SCI) on behalf of the Union Territory of Lakshadweep Administration (UTLA) invites tenders for the construction and delivery of one 500 Passenger all-weather Vessel.
1.1 Foreign Shipyards: Shipyards that have built and delivered at least Two (2) no’s similar type/size SOLAS compliant passenger vessels in the last 10 years.
1.2 Indian Shipyards: The Qualification of Indian shipyards will be based on a “Shipyard Qualification Template” which is to be submitted by the shipyards (as per the format prescribed at Annexure-I) along with their tender bid, in order to assess the infrastructure availability and capability of the shipyards to execute the shipbuilding contract. Annexure-I is applicable only for Indian Shipyards.
1.3 If the shipyard is having a leased facility then the lease should be valid for the entire construction period with a margin of at least 12 months.
1.4 In cases where shipyard does not have its own in-house design facility, the shipyard has to sign necessary agreement with the designer for providing design support, valid upto successful delivery of the vessel. The designer should have provided design for similar or larger passenger vessels during the last five years and vessels based on such design are under construction with vessel in launching stage or already delivered.
1 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 1.5 The design has to be model tested by the successful bidder before the shipbuilding contract becomes effective i.e. successful model testing will be a pre-requisite for contract effectiveness.
1.6 Vessel has to be delivered at Shipyard with all valid certificates.
2. A detailed specification of the vessel under consideration is enclosed at Annexure II for guidance in preparation of the Technical documents. Shipyards are requested to carefully study the “Outline Technical Specifications” and submit their offer accordingly.
3. The Tenderers are requested to seek clarifications, if any, on the Technical Specification or any other matter concerning the above project through Fax/ letter/electronic mail addressed to the Director (Technical & Offshore Services) at the below mentioned address:
The Director (T&OS), The Shipping Corporation of India, Shipping House, 5th Floor, 245, Madame Cama Road, Mumbai – 400021, India Email: [email protected]; Fax: +91-22-2285 4790
Further, a clarification/pre-bid meeting may be held in the SCI office at the above mentioned address to furnish clarifications to the various queries raised by the participating Tenderers. The exact date of the meeting shall be communicated to the Tenderers and interested shipyards may depute their representative to attend the meeting.
4. Submission of Offers: The offer for construction of the intended vessel shall be submitted by the interested Tenderers in different stages as under:
Stage I/A Envelope I Technical Specifications (Refer 5.1, 5.2, 5.3 & 6) Stage I/A Envelope II Annual Reports (Refer 5.4 & 6) Stage I/B Offer Final Technical Offer (Refer 8) Stage II Envelope III Commercial Offer (Refer 9)
5. Stage I/A Offer:
5.1 A detailed technical specifications along with the following documents is to be submitted by the Tenderer in a sealed Envelope (ENVELOPE I):
a) General Arrangement b) Midship Section c) Preliminary Trim & Stability Calculation ( Intact & Damage) d) Speed & Power Curve for the vessel
2 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 e) Electrical Load Analysis f) Bilge/Ballast Pumping & Piping Arrangement g) Makers List
The above technical documents are to be based on the “Outline technical specifications” enclosed at Annexure-II. Any deviations/discrepancies/ changes or alternate proposals/arrangements with respect to the technical specification at Annexure II are to be submitted along with the bid in the form of a Deviation List.
5.2 The Envelope-I should also contain the following documents:
a) A brief history of Tenderer’s Company (Shipyard), Organizational Structure etc. along with material/information (all in English language) demonstrating the tendering Shipyard’s capability to undertake and fulfil the project.
b) A statement regarding building experience of the Tenderer (Shipyard) year-wise during the last ten years, in delivering similar type of vessels, giving name of ship, type/size, year built, owners, classification society, time taken from contract signing to delivery of the vessel (both contractual as well as actual), proof of delivery etc., as per the following format:
Year Vessel Type/ Owners Class Time taken from built name size of contract signing to Ship delivery
c) An acknowledgement letter (as per the pro-forma enclosed at Annexure-III) duly signed by the Tenderer’s authorized signatory (Refer Para 10) declaring acceptance of the terms and conditions of this Tender document.
d) Delivery schedule of the proposed vessel in number of months from date of contract effectiveness. This period has to be 36 months or less.
e) Bid Security
f) A statement regarding design experience of the Designer year-wise during last ten years, in designing various types of vessels and their details in a tabular format
5.3 The Envelope – I is to be addressed to “The Director (Technical & Offshore Services) at the address given at para (3) above and shall be super-scribed with:
3 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 “ACQUISITION OF ONE 500 PASSENGER ALL-WEATHER VESSEL FOR UTLA”- TECHNICAL PART”
5.4 The Tenderer is to submit a separate Envelope (Envelope – II), containing the published/audited Annual Report of their company/shipyard for the immediate preceding financial year together with a statement giving the summarised financial position of the Tenderer’s shipyard in English language, certified by the Secretary of the Company or any other Authorised official. This Envelope is to be super-scribed with “ANNUAL REPORTS” and is to be addressed as per the 5.3 above.
5.5 The bidder/shipyard should have positive net worth during the immediate preceding financial year. In case of a Indian shipyard does not have a positive net worth as required during the immediate preceding financial year, it should provide a ‘Letter of Comfort’ from reputed/Scheduled Indian Banks indicating to provide necessary financial support (at least 60% of the value of the contract) to execute the project as per the format prescribed in Annexure-IV. Further, the financials of the bidder should be sound; and, the Debt equity ratio, Cash flow, Solvency Ratio are to be positively adequate to service the subject shipbuilding project; else, the bidder has to provide “Letter of Comfort” from nationalised/ reputed Indian Bank or First Class International Bank acceptable to SCI.
6. Date and Time for Submission of Stage- I/A Offer: The stage I/A offer (Technical Offer, Envelopes- I & II) should reach SCI at the above address not later than 1700 Hours IST on Nov 8, 2019 which is the last prescribed date and time for receipt of Stage-I/A offer. The Tenderers may submit the Stage-I/A offer earlier than the above mentioned date, if they desire. The Technical offers would be opened on Nov 11, 2019 at 1100 hours IST in presence of the representatives of the participating shipyards, who may be present.
7. Scrutiny and Evaluation of Technical Part:
7.1 The technical specifications submitted by the contending tenderers (shipyards) along with Stage-I/A offer will be scrutinised and evaluated. A shortlist of the shipyards will be made taking into account the past experience in case of foreign shipyards as mentioned in 1.1 above. For Indian Shipyards the “Shipyard qualification Template” as mentioned in 1.2 above, the financial qualification as per 5.5 above and the delivery schedule of the proposed vessel as per 5.2 (d) above.
7.2 Shortlisted shipyards will be called to Mumbai for detailed discussions, if need be, and thereafter will be requested to submit the final agreed specifications as mentioned at Para 8 below. The contending Shipyards should be represented by their own qualified technical personnel in such technical discussions and not be represented by any third party or consultants only.
4 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 8. Stage I/B Offer: At the end of the technical discussion (which shall be through correspondence or at meetings or both) the specifications of the vessel are to be fully documented, mutually agreed and signed as found necessary and to be considered as FINAL. The final technical offer (i.e. the finally agreed specification and technical documents) should be submitted by the shipyards in either soft copy (PDF) format or in a sealed envelope.
9. Stage –II Offer:
9.1 Thereafter the Tenderers would be asked to submit their commercial offers based on the finally agreed specification. The date and time for submission of Stage II offer will be intimated to the shortlisted shipyards in due course.
9.2 The Commercial Offer is to be submitted in a sealed Envelope (Envelope III) to the Director (Technical & Offshore Services), SCI at the address given at para (3) above on the specified date and time. The Envelope to be super-scribed with:
“ACQUISITION OF ONE 500 PASSENGER ALL-WEATHER VESSEL FOR UTLA” – COMMERCIAL OFFER”
9.3 The Commercial Offer (Envelope III) should take into account the following:
a) Price: The price should be firm and fixed and subject to no escalation whatsoever. The price should be inclusive of all taxes including GST, customs duty, excise duty and any other taxes, duties and levies, as applicable. The price should be inclusive of Exchange Rate Variation (ERV), which the Tenderers have to factor in the quoted price. The price is to be quoted only in US Dollars (US$) on 100% cash basis payable in instalments by delivery. The instalments/stage payments are fixed by SCI and the same will be communicated at the time of inviting commercial offer.
b) Delivery Schedule: The firm delivery schedule of the vessel should be specified in number of months from the date of contract effectiveness. Total construction period of the vessel has to be 36 months or less from the contract effectiveness.
c) Construction and Payment Schedule: A detailed construction schedule in the form of a bar chart indicating the key events in number of months from the time of contract effectiveness should be furnished. The bar chart should also show the position of stage payments and the gaps between the stage payments till delivery of the vessel.
5 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 d) The Commercial Offers will be opened in the presence of the Tenderer’s/shipyard’s authorized representatives, who may be present. The date and time of opening of the commercial offers will be intimated in due course. Relevant information regarding the price, payment terms, delivery schedule etc. would be read out to all authorized representatives of the Shipyards.
e) Guidelines issued by the Government of India for evaluating/ awarding tenders for shipbuilding contracts would be followed appropriately. (A copy of the notification issued by the Ministry of Shipping is given at Annexure-V).
9.4 The Commercial Offer (Stage II –Offer / Envelope-III) shall remain valid for a period of 120 days from the date of opening of the Commercial Offer. Subsequently, if required, the bid validity has to be extended further unconditionally.
10. Signatory to the offer: The Tender should be signed only by a duly authorized representative of the Shipbuilder, whose name and designation shall appear in capital letters below the signature.
11. Evaluation of commercial offers:
11.1 During evaluation of the offers received, appropriate weight-age would be given to:
a) Delivery and payment schedule of vessel: Total construction period of the vessel has to be 36 months or less from the contract effectiveness.
b) Bunker Consumption per steaming day: The shipyard offering least fuel consumption per day for the vessel would be taken as base. For vessel offered by other shipyards, the additional cost of bunker due to excess bunker consumption (as compared to the lowest consumption offered) would be loaded to the respective shipyard’s quoted price for evaluation purpose. SCI would reckon 180 steaming days in a year, 25 years life of the vessel and prevailing bunker prices at Kochi (India) for calculating the bunker penalty. The cost of excess bunker consumption per year (over the service life of 25 years) would be discounted at the rate of 9% p.a. to arrive at the Net Present Value of the excess bunker consumption.
c) Passenger carrying capacity & Service speed as compared to the specified requirement: While no credit would be given for higher passenger carrying capacity and higher speeds, there would be penalty if speed is less than tender document requirement. Penalty, if any, would
6 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 be loaded as per the liquidated damages figures indicated in Paragraph 13.1(e) below. Vessel with lesser passenger carrying capacity will not be considered.
d) Mobilization cost: Vessel mobilization cost from the port of delivery to Kochi (India) would be loaded appropriately.
11.2 For the purpose of evaluation of the commercial offers, SCI would reckon a compounding rate of 9% p.a. for all payments to be made for the vessel.
11.3 SCI would be free to call for any details/clarifications or a revised offer from the shortlisted shipyards.
12. Technical Documentation: On receipt of intimation/invitation from SCI, the successful Shipyard shall without delay arrange to finalize all technical documentation with regard to the Specification, G.A. plan, etc. with the technical team of SCI.
13. Contract:
13.1 The formal contract shall be executed after the necessary approvals from the Government of India and other Appropriate Authorities are received by the Owners (UTLA). The Contract will be made effective upon successful model testing of the vessel which is to be conducted within Six (6) months of signing of the contract. The contract terms shall be discussed and finalized on the basis of SCI's standard shipbuilding contract which would include, among other things, the following:
a) An unconditional and irrevocable refund guarantee, without demur, from a reputed bank acceptable to Owners (UTLA) / SCI, guaranteeing that all payments made to the Shipyard for the construction of this vessel are in the nature of advances and in the event of the Shipyard failing to perform the contract/defaulting/not completing or delivering the vessel, the bank shall refund to Owners (UTLA) all the instalments paid to the Shipyard together with interest thereon @ 12% per annum from the date these instalments were paid till the actual date of refund of the said instalments. The format of the guarantee documentation shall be specified by SCI/UTLA.
The Bank Guarantees should be valid up to a minimum 03 months after contract rescinding options date linked to the delivery schedule.
In case the delivery of vessel is expected to be delayed from the fixed date as per the contract, then the Builder will take necessary steps at least forty five (45) days in advance to extend this Guarantee to cover this delay period and the extended Guarantee (in original) has to be
7 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 provided to the Buyer at least 20 days before expiry of the original bank guarantee(s); otherwise the Builder shall be deemed to be in default / breach of contract and the Buyer may, at its sole option, rescind the contract and invoke the Refundment Guarantee immediately.
b) The vessel, including all its machinery & equipment shall be guaranteed for one full year from the date of delivery of the vessel, against deficiency in design, material, poor workmanship and/or faulty construction etc. Extended guarantee, if required for some specific items, shall be given as per the final agreed Specification.
c) Performance Guarantee: The shipyard will have to provide a Contractual Performance Guarantee, at the time of Contract signing, from a reputed bank acceptable to Owners, equivalent to 5% of the contract value, valid up to a period of 42 months or till the date of delivery of the vessel whichever is later. In case of non-performance of the contract, the owner shall be entitled to en-cash the said bank guarantee immediately. No interest shall be paid on this Contractual Performance Guarantee by the Buyer.
On formal delivery and acceptance of the vessel, the above mentioned Contractual Performance Guarantee will be then treated as Performance Guarantee for the Guarantee Period for warranty related issues and the validity to be extended accordingly. The shipyard will have to ensure that the Guarantee is kept valid for the entire period of Fifteen (15) months (i.e. Guarantee period of 12 months after delivery of vessel plus three additional months towards claim period). The same will stand released on expiry of the stipulated Guarantee period as extended for a further period of guarantee, if any. The owner shall be entitled to en-cash the said Bank Guarantee towards non fulfillment of Guarantee liabilities by the shipyard in accordance with the provisions of the shipbuilding contract, to compensate the losses or expenditure incurred on account of rectifications or repairs.
d) The Vessel and all the Owner's supply items to be delivered on ship are to be insured against all risks including War and Strike, Riots and Civil Commotion during the time of construction until delivery by the Shipyard. In case the vessel becomes a constructive total loss during the construction, the Shipyard would refund to Owner (UTLA) all installments paid till then with interest thereon at the rate of 12% per annum till the actual date of refund.
8 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 e) The contract shall have the usual liquidated damage clauses for deficiencies as specified hereunder :
Sl. ITEM GRACE PENLTY TO RATE OF LIQUIDATED DAMAGES No LIMIT COMMENCE AS % OF CONTRACT PRICE FROM 1 Delay in Up to 30 From 31st day 0.05% of Contract Price per day Delivery days of delay till total delay of is 120 days. Beyond 120 days of delay, the Buyer may at its sole option, may rescind the contract or consent to accept the vessel at LD rates of 0.10% of Contract Price for every additional day after 120 days 2 Insufficient Up to 0.3 From the 0.25% for every 0.1 knot or pro- Speed knot of guaranteed rata and if the deficiency guaranteed Speed exceeds one (1) full knot below speed guaranteed speed and the builder is not able to rectify, the Buyer at its sole option, may reject the vessel and rescind the Contract or may accept the vessel at a reduction in contract price as LD at the rate 0.5% for the deficiency of each 0.1 knot (and pro-rata for part thereof) beyond the one knot. 3 Excessive Up to 5% From 5% 0.20% for every 1% excess or Fuel prorate. If the deficiency Consumpti exceeds guaranteed fuel on consumption by Nine per cent (9%), the Buyer at its sole option may reject the vessel if the Builder is not able to rectify excess fuel consumption or may accept the vessel at reduction in Contract Price as LD at the rate 0.40% for every 1% of excess fuel consumption. 4 DWT 1% of From the 0.06% per MT. If the deficiency Shortfall guaranteed guaranteed in actual DWT is more than DWT DWT Two(2) percent and Builder not able to rectify it, then the Buyer at its sole option may reject the vessel and rescind the contract or may accept the vessel at a reduction in the Contract Price as LD at the rate 0.12% for each one(1) MT below guaranteed DWT. 5 Shortfall in Passenger Short fall in passenger capacity is not allowed Capacity
The contract will provide an option to SCI/UTLA for termination of the contract if the deficiencies in above parameters exceed the threshold values.
9 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 f) Owners to have the option of deputing one or more supervisors at the Shipyard to supervise construction of the vessel. The Shipyard shall provide office accommodation, telephone, tele-fax, computer with e-mail facility, secretarial support / transportation etc. to the supervisors at Shipyard’s cost to facilitate supervision.
g) The Classification of the vessel shall be Dual Class along with IRS.
h) The Makers list will be discussed and mutually agreed while finalizing the Technical specification. Selection of the makers from the Maker's List will be made in consultation and with approval of SCI. Equipment manufactured by licensees of the listed makers may also be considered subject solely to SCI’s acceptance and subject to the licensees following the latest design of the principal manufacturer with all modifications.
13.2 A copy of SCI’s shipbuilding contract format will be given to the selected shipyard.
14. Other Conditions
14.1 SCI/UTLA does not bind itself to accept the lowest offer and has the sole discretion to accept or reject any tender without assigning any reason.
14.2 While evaluating tenders, regard would be paid to national defence and security considerations.
14.3 The Tenderer should also confirm the following in writing while submitting the Technical offer “Envelope-I”:
a) Whether the Tenderer employs in any capacity whether administrative or advisory, ex-SCI officer who has retired from the DGM or higher rank in preceding two years as on the tender closing date
b) If the answer to (a) above is in affirmative, the name and designation of that officer in the firm, his designation at the time of retirement in SCI and his date of retirement from SCI should be furnished;
c) The role and responsibilities of that officer in the firm especially with regard to the contract for which the bid is made should be clearly spelt out.
14.4 It may be noted that SCI and UTLA do not deal with agents or brokers and all dealings will be directly with the Tenderer. Along with the Commercial Offer, the Tenderer shall provide a written undertaking that it would not pay any commission or brokerage in any form to any party. This undertaking would also, inter alia, state that the SCI would not be required to pay commission or brokerage in any form to any party and that SCI is not responsible for any understanding or arrangement or
10 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 agreement between the Shipyard and other third parties. However, the SCI has no objection to the Tenderer having a representative, only for the purpose of facilitating transmission of messages and other documents. The name and address of such representative is to be specified by the Tenderer along with the Commercial Offer and submitted along with Envelope IV.
15. Bid security: The Bidder is required to submit Bid Security (refundable) of INR Three Crore (for Indian Shipyards) or US$ 500,000 (for Foreign Shipyards), in either of the following manner:
i. Direct online remittance in SCI’s bank account as follows: Name of Beneficiary: The Shipping Corporation of India Limited Current A/C No- 416197198 IFSC: IDIB000N052; MICR: 400019020 Bank Name: Indian Bank Bank Address: Nariman Point Branch, Mittal Towers, Ground Floor, 210, Nariman Point Maharashtra 400021 ii. DD/PO favouring The Shipping Corporation of India Limited, payable at Mumbai.
iii. Fixed Deposit with validity of not less than one year, to be pledged in the name of “The Shipping Corporation of India Ltd.”
iv. The Bidder may submit Bid Security in the form of Bank Guarantee from a nationalised/reputed Indian Bank or First Class International Bank acceptable to SCI with validity not less than NINE months from the due date of the tender in the format as per Annex-VI.
Bid security is refundable, except on withdrawal of the offer before decision and/or failure of the Bidder to accept the contract, if awarded. No interest will be paid by SCI on Bid Security amount. The original DD/PO/BG should be submitted to SCI alongwith Technical offer Envelope-1. Tenders received without Bid Security are liable to be rejected.
15.1 FORFEITURE OF BID SECURITY: The Bid Security submitted with the tender shall stand forfeited in the event:
i. The Bidder withdraws his offer any time before the tender is finally considered/ decided upon. ii. The Bidder increases the quoted prices during the validity of the tender /extension granted on the validity. iii. The Bidder seeks amendment of tender terms, or the price offer submitted after submission of tender. iv. The Bidder fails to accept the contract, if awarded or fails to submit Security Deposit and / or Performance Guarantee on award of the contract. v. The bidder violates the terms of Integrity Pact.
11 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019 16 Integrity Pact:
16.1 Tenderers are required to submit “Integrity Pact” (Annexure- VII), duly signed by the same signatory on all pages and details filled in properly. The acceptance of Integrity Pact shall be unconditional and the Tenderer must not change any contents of the Integrity Pact. The signed Integrity Pact should be enclosed with the technical offer. Offer received without the signed Integrity Pact and/or without details filled in, shall be rejected.
16.2 An Independent External Monitor (IEM) has been appointed to oversee the implementation of the Integrity Pact. The contact details of the IEMs are as follows:
1) Dr. Sarat Kumar Acharya Email id: [email protected]
2) Shri Vishnu Agarwal Email id: [email protected]
16.3 A person signing IP shall not approach the Courts while representing the matters to IEMs and he / she will await their decision in the matter.
Thanking You,
Yours Faithfully,
Encl: As Above
12 | P a g e Tender Ref: SCI/T&OS/NB/UTLA/500Pax/2019