KENYA PIPELINE COMPANY LIMITED
EPC TENDER FOR THE REPLACEMENT OF 15KM OF 14-INCH WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMETER MARKER NO. 38- 43(SAMBURU AREA) & 390-400(KONZA AREA)
CONTRACT NO. KPC/PU/047 – OT/18 – 19
MARCH 2019
i TABLE OF CONTENTS
SECTION I - INVITATION TO TENDER ...... 1 SECTION II - BACKGROUND AND PRELIMINARY INFORMATION ...... 3 BACKGROUND ...... 3 PRELIMINARY INFORMATION ...... 3 SECTION III - INSTRUCTIONS TO TENDERERS GENERAL ...... 4 PREPARATION OF TENDERS ...... 7 SUBMSSION OF TENDERS...... 10 TENDER OPENING AND EVALUATION ...... 12 AWARD OF CONTRACT ...... 15 APPENDIX TO INSTRUCTIONS TO TENDERERS ...... 17 SECTION V – FINANCIAL PROPOSAL ...... 63 5.4 BILLS OF QUANTITIES ...... 68 5.5 SCHEDULE OF RATES ...... 76 5.6 LETTER OF NOTIFICATION OF AWARD ...... 78
Page ii SECTION I - INVITATION TO TENDER
Tender No. KPC/PU/047 – OT/18 – 19
Tender Name: EPC TENDER FOR THE REPLACEMENT OF 15KM OF EXISTING 14-INCH WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMETER MARKER NO. 38-43(SAMBURU AREA) & 390-400(KONZA AREA)
1.1 Kenya Pipeline Company Limited invites tenders from eligible bidders for THE ENGINEERING DESIGN, PROCUREMENT AND CONSTRUCTION (EPC), TESTING AND COMMISSIONING OF A REPLACEMENT 14’’ (FOURTEEN INCH) 15 KM OIL PIPELINE AT SAMBURU AND KONZA AREA.
1.2 Interested eligible candidates can view and download the documents from the website www.kpc.co.ke at no cost. Bidders will be required to email their detailed contact information to [email protected] for recording, further clarifications and addenda. No other email addresses should be used.
1.3 Mandatory requirements are as given below, these shall be placed in a separate and sealed envelope: - i. Certificate of Incorporation of the company/business registration for both foreign and local partner ii. Valid KRA tax compliance certificate (for local/Kenyan firms) iii. Tender Security of USD 10,000.00 issued by a reputable bank or insurance company approved by The Public Procurement Regulatory Authority, Kenya (PPRA) valid for 180 days from the date of tender opening iv. Local firms Must Provide: • Valid NCA 1 – Mechanical • Valid NCA 1- Civil works v. Certificate of Tenderer’s Site Visit • The visit is scheduled for 27th March 2019 at 10.00am at Pump Station No. 8 in Konza. vi. Power of attorney duly signed vii. Foreign tenderers must submit their bids in association with local firms. The participation of a local firms shall be at least 40% of the contract value. The firms must enter into a partnership agreement which may be a Joint Venture, a Memorandum of Understanding (MOU) or any other form of agreement signed by all the parties involved as per clause 3.2.2 of this tender document. viii. Signed Declaration Form. ix. Duly filled confidential business questionnaire and Litigation status x. Bidders must paginate all their documents and initialize each page
Page 1 1.4 Prices quoted should be inclusive of all taxes and in United States Dollars (USD) or/and Kenya Shillings and shall remain valid for 150 days from the closing date of tender.
1.5 Completed tender documents are to be enclosed in plain sealed envelopes marked with the Tender name and reference number and deposited in the Tender Box at the ground floor at Kenpipe Plaza or addressed to:
The Managing Director, Kenya Pipeline Company Limited, Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box 73442–00200, Nairobi, Kenya. To be received on or before 10th April 2019
1.6 Tenders will be opened immediately thereafter in the presence of the tenderers or their representatives who choose to attend at Kenpipe Plaza, Sekondi Rd, off Nanyuki Rd, Industrial Area. All tenders received after the closing date set out in paragraph 1.5 hereinabove shall not be considered and shall be returned to the bidders.
1.7 In the event that there arises any conflict or contradiction between the public advertisement of the tender and the tender document, the tender document shall at all times prevail.
1.8 Tender documents are not transferable.
The General Manager (supply chain), FOR: MANAGING DIRECTOR
Page 2 SECTION II - BACKGROUND AND PRELIMINARY INFORMATION BACKGROUND Kenya Pipeline Company (KPC) Limited was incorporated on 6th September 1973 under the Companies Act and started commercial operations in 1978. The Company is 100 percent owned by the Government of Kenya. The Company operates and maintains a cross-country pipelines system of various sizes with the associated storage and distribution facilities. The pipeline system currently consists of 450 km of Line 1 (14 inch) running from the port of Mombasa to Nairobi, 325 km of Line 2 (8 inch) from Nairobi to Eldoret, 324 km of Line 4 (14 inch) from Nairobi to Eldoret, 121 km of Line 3 (6 inch) from Sinendet to Kisumu (off Line II), 121km of line 6 running from Sinendet to Kisumu. The company is set to commission a 20inch line 5 that will run from Mombasa to Nairobi. This will bring to a total of 1,791 km of pipeline that shall be operated. KPC also owns and operates several pumping stations and depots between the above mentioned stations. The depots are located at Kipevu (PS 14), Moi International Airport (PS12), Embakasi (PS9), Nairobi Terminal (PS10), Nakuru (PS25), Eldoret (PS27) and Kisumu (PS28). In addition, the company operates common-user road and rail tanker loading facilities at Nakuru, Eldoret and Kisumu.
Line 1 had a design life of approximately 25 years. Its replacement was due in 2003, however, due to effective maintenance its life was elongated by close to 14 years.
PRELIMINARY INFORMATION KPC wishes to replace the 15km of the badly worn out portion of the line 1 that stretches from KPC marker Post KM 38-43 (Samburu Area) & 390-400 (Konza area). The portion intended for replacement is currently in use and is delivering approximately 800m3/hr. of white petroleum product i.e. Automotive Gas Oil, Motor spirit Premium and Dual Purpose Kerosene. The existing 14-inch Line 1 was constructed and commissioned in 1978 with envisaged design life of 25 years after system commissioning. The pipes were manufactured through ERW method of production using carbon steel grade to API 5L X52 specifications with assorted pipe nominal wall thickness of 12.7mm at pump discharge, 8.74mm, 7.92mm, 7.14mm and 6.35mm for other areas. About 80% of the total stretch of the pipeline from Mombasa to Nairobi, measuring approximately 450KM, had a nominal wall thickness of 6.35mm. The pipeline was coated with coal tar enamel as a primary source of corrosion protection. Additionally, the pipeline was installed with impressed current as a secondary means of Cathodic Protection. Over the years the efficiency of these installations have waned resulting to under protection of the pipeline thus leading to severe corrosion damage of the pipeline. The internal body of the pipeline is protected through regular dosing of the corrosion inhibitor.
Page 3 SECTION III - INSTRUCTIONS TO TENDERERS GENERAL 3.1 Definitions (a) “Tenderer” means any person or persons, partnership, Joint venture, consortium or company submitting a tender for the project acting directly or through a legally appointed representative (b) “Accepted tenderer” means the tenderer who is approved by KPC (c) “Procuring entity” means Kenya Pipeline Company (KPC) Limited (d) KPC” means Kenya Pipeline Co. Ltd (KPC) (e) “PPRA” means Public Procurement Regulatory Authority formally known as “PPOA” Public Procurement Oversight Authority. (f) “NCA” means National Construction Authority
3.2 Eligibility and qualification of tenderers 3.2.1 To be eligible and qualified the tenderer shall provide evidence satisfactory to KPC of its eligibility, capability and adequacy of resources to effectively perform the subject contract. To this end, the tenderer shall be required to submit a “technical proposal” which will include the following information.
i. Details of experience and past performance of works of similar nature as per clause 3.26.1 herein.
ii. The qualifications and experience of key personnel proposed for administration and execution of the contract both on and off site.
iii. Major items of construction plant and equipment proposed for use in the performance of the contract.
iv. Details of subcontractors to whom it is proposed to sub-contract any portion of the contract and for whom authority will be required for such subcontracting in accordance with the conditions of contract.
v. A draft programme of works in the form of a Gantt chart which shall form part of the contract if the tender is accepted. Any change in the programme or schedule shall be subject to the approval of KPC.
vi. Details of any current litigation or arbitration proceedings in which the tenderer is involved as one of the parties.
vii. Financial capability as detailed in the Technical Evaluation criteria
3.2.2 Joint Venture/MOU/Local Partnership Agreement Tenders submitted by two or more firms shall comply with the following requirements; i. The tender and in case of a successful tender, contract form shall be signed so as to be legally binding on all parties.
Page 4 ii. One of the parties shall be nominated as being lead contractor, and this authorization shall be evidenced by submitting a power of attorney signed by legally authorized signatories of all the parties. iii. The lead contractor shall be authorized to incur liability and receive instructions for and on behalf of any and all the parties and the entire execution of the contract including payment shall be done exclusively with the lead contractor. iv. All parties shall be liable jointly and severally for the execution of the contract in accordance with the contract terms, and a relevant statement to this effect shall be included in the authorization mentioned in (b) above as well as in the form of tender and the contract form (in case of the accepted tender). v. A copy of the contract entered into by all the parties shall be submitted with the tender. vi. Foreign tenderers must submit their bids in association with local firms. The purpose is to ensure sustainable promotion of local industry. The participation for local firms shall be at least 40% of the contract value. The local partnership agreement may be a Joint Venture, a Memorandum of Understanding (MOU) or any other form of agreement signed by all the parties involved. • The local partner of the tenderer shall provide all the mandatory requirements/information as per details provided under the INSTRUCTION TO TENDERERS- except the tender security which shall only be provided by one firm.
3.2.3 Kenya Pipeline Company employees, committee members, board members and their relatives (spouse and children) are not eligible to participate in the tender.
3.2.4 A tenderer who gives false information in the tender document about its qualification or who refuses to enter into a contract after notification of contract award shall be disqualified and /or recommended for debarment from participating in future public procurement.
3.3 Cost of tendering 3.3.1 The tenderer shall bear all costs associated with the preparation and submission of its tender and KPC will in no case be liable for those costs, regardless of the conduct or outcome of the tendering process.
3.3.2 KPC shall allow the tenderer to view the tender document free of charge before purchase.
3.4 Site Visit is Scheduled for 27th March 2019 at 10 am at. Pump Station No. 8 in Konza. 3.4.1 A representative of KPC will be available to meet the visiting tenderers at the site. Tenderers must provide their own transport and PPE (Personal Protective Equipment) where required.
Page 5 3.4.2 The tenderers must visit and examine the site and its surrounding and obtain for themselves on their own cost and responsibility all information that may be necessary for preparing the tender and entering into a contract. KPC shall organize a site visit at a date to be notified. A representative of KPC will be available to meet the visiting tenderers. Tenderers must provide their own transport.
3.4.3 The tenderers and any of their personnel or agent will be granted permission by KPC to enter upon premises and lands for the purpose of such inspection, but only upon the express condition that the tenderer, its personnel or agents, will release and indemnify KPC from and against all liability in respect of and will be responsible for personal injury (whether fatal or otherwise), loss of or damage to property and any other loss, damage, costs and expenses however caused, which but for the exercise of such permission, would not have arisen.
3.4.4 The representative will not be available at any other time for site inspection visits other than the stated date and time announced to the bidders
3.5 Contents of tender document This document constitutes the complete tender for this project. 3.5.1 The tenderer is expected to examine carefully all instructions, conditions, forms, terms specifications and drawings in the tender documents. Failure to comply with the requirements for tender submission will be at the tenderer’s risk. Pursuant to clause 3.23 of Instructions to tenderers, tenders which are not substantially responsive to the requirements of the tender documents will be rejected. 3.5.2 All recipients of documents for the proposed contract for the purpose of submitting a tender (whether they submit a tender or not) shall treat the details of the documents as “private and confidential”.
3.6 Inquiries by tenderers 3.6.1 A tenderer making an inquiry relating to the tender documents may notify KPC in writing by fax or email at KPC’s mailing address indicated in the invitation to tender. KPC will respond in writing to any request for clarification which is received earlier than 7 days prior to the deadline for the submission of tenders. Written copies of KPC’s response (including the inquiry but without identifying the source of the entity) will be sent to all respective tenderers who have purchased the tender documents. If a candidate sends an inquiry after the stated days, KPC shall have the option of responding to the inquiry and extension of the date of submission of tenders or ignoring it. 3.6.2 The tender evaluation committee shall evaluate the tender within 15 days from the date of opening the tender. 3.6.3 KPC shall reply to any clarifications sought by the tenderer within 3 working days of receiving the request to enable the tenderer to make timely submission of its tender, provided that Clause 3.6.1 hereinabove shall apply 3.7 Amendment of tender documents
Page 6 3.7.1 At any time prior to the deadline for submission of tenders KPC may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective tenderer, modify the tender documents by issuing Addenda 3.7.2 Any Addendum will be notified in writing or by cable, telex or facsimile to all prospective tenderers who have purchased the tender documents and will be binding upon them.
3.7.3 In order to allow prospective tenderers reasonable time in which to take the Addendum into account in preparing their tenders, the employer may, at its discretion, extend the deadline for the submission of tenders.
PREPARATION OF TENDERS
3.8 Language of tender 3.8.1 The tender and all correspondence and documents relating to the tender exchanged between the tenderer and KPC shall be written in the English language. Supporting documents which are printed literature furnished by the tenderer with the tender may be in another language provided they are accompanied by an appropriate translation of pertinent passages in the above stated language. For the purpose of interpretation of the tender, the English language shall prevail. 3.9. Documents comprising the tender 3.9.1 The Forms, Bills of Quantities and Schedules submitted with the tender documents shall be used without exception (subject to extensions of the schedules in the same format and to the provisions of clause 3.13.2 regarding the alternative forms of tender security).
3.10 Tender prices 3.10.1 All the insertions made by the tenderers shall be made in indelible INK and the tenderer shall clearly form the figures. The relevant space in the Form of Tender shall be completed accordingly without interlineations or erasures except those necessary to correct errors made by the tenderer in which case the erasures and interlineations shall be initialled by the person or persons signing the tender. 3.10.2 This is a fixed rate Lump Sum Contract. A price or rate shall be inserted by the tenderer for every item in the Bills of Quantities whether the quantities are stated or not, items against which no rate or price is entered by the tenderer will not be paid for by KPC when executed and shall be deemed covered by the rates for other items and prices in the Bills of Quantities. The prices and unit rates in the Bills of Quantities are to be the full [all-inclusive] value of the work described under the items, including all costs and expenses which may be necessary and all general risks, liabilities and obligations set forth or implied in the documents on which the tender is based. All duties and taxes and other levies payable by the tenderer under the Contract or for any other cause prior to the deadline for the submission of tenders, shall be included in the rates and prices and the total tender prices submitted by the Tenderer.
Each price or unit rate inserted in the Bills of Quantities should be a realistic estimate for completing the activity or activities described under that particular
Page 7 item and the tenderer is advised against inserting a price or rate against any item contrary to this instruction.
Every rate entered in the Bills of Quantities, whether or not such rate be associated with quantity, shall form part of the Contract. KPC shall have the right to call for any item of work contained in the Bills of Quantities, and such items of work to be paid for at the rate entered by the tenderer and it is the intention of KPC to take full advantage of unbalanced low rates.
3.11 Currencies of tender and payment
3.11.1 Tenders shall be priced in US Dollars.
3.11.2 Tenderers are required to indicate in the Statement of Foreign Currency Requirements, which forms part of the tender, the foreign currency required by them. Exchange rates 3.11.3 The rate of exchange used for pricing the tender shall be the Central Bank of Kenya (CBK) mean rate ruling on the date thirty (30) days before the final date of submission of tenders.
3.11.4 Tenderers must enclose with their tenders, a brief justification of the foreign currency requirements stated in their tenders.
3.12 Tender Validity 3.12.1 The tender shall remain valid and open for acceptance for a period of one hundred and twenty (150) days from the specified date of tender opening or from the extended date of tender opening (in accordance with clause 7.4 here above) whichever is the latter.
3.12.2 In exceptional circumstances prior to expiry of the original tender validity period, KPC may request the tenderer for a specified extension of the period of validity. The request and the responses thereto shall be made in writing or by cable, telex or facsimile. A tenderer may refuse the request without forfeiting his Tender Surety. A tenderer agreeing to the request will not be required nor permitted to modify his tender, but will be required to extend the validity of his Tender Surety correspondingly
3.13 Tender Security
3.13.1 The tenderer shall furnish as part of his tender, a Tender Security in the amount of USD 10,000.00 in the form of Bank Guarantee or Bid bond issued by a Bank operating in Kenya or Insurance Company approved by PPRA.
3.13.2 The Tender Security shall be valid for at least thirty (30) days beyond the tender validity period.
Page 8 3.13.3 Any tender not accompanied by an acceptable Tender Security will be rejected by KPC as non-responsive.
3.13.4 The Tender Securities of unsuccessful tenderers will be returned as promptly as possible, but not later than twenty-eight (28) days after concluding the Contract execution and after a Performance Security has been furnished by the successful tenderer. The tender security of the successful tenderer will be returned upon the tenderer executing the Contract and furnishing the required Performance Security.
3.13.5 The Tender Security may be forfeited:
(a) if a tenderer withdraws his tender during the period of tender validity; or (b) in the case of a successful tenderer, if he fails (i) to sign the Agreement, or (ii) to furnish the necessary Performance Security (c) if a tenderer does not accept the correction of his tender price pursuant to clause 3.24. 3.14 No alternative offers
3.14.1 The tenderer shall submit an offer which complies fully with the requirements of the tender documents unless otherwise provided for in the appendix. Only one tender may be submitted by each tenderer either by himself, his subsidiary, or as partner in a joint venture.
3.14.2 The tenderer shall not attach any conditions of his own to his tender. The tender price must be based on the tender documents. The tenderer is not required to present alternative construction options and he shall use without exception the Bills of Quantities as provided, with the amendments as notified in tender notices, if any, for the calculation of his tender price.
Any tenderer who fails to comply with this clause will be disqualified.
3.15 Pre-tender meeting
3.15.1 If a pre-tender meeting is convened the tenderers’ designated representative shall be invited to attend at the venue and time stated in the Invitation to Tender. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at that state.
3.15.2 The tenderer is requested as far as possible to submit any questions in writing or by cable, to reach KPC not later than seven days before the meeting. It may not be practicable at the meeting to answer questions received late, but questions and responses will be transmitted in the following manner:
(a) Minutes of the meeting including the text of the questions raised and the responses given together with any responses prepared after the meeting will be transmitted without delay to all purchasers of the tender
Page 9 documents. Any modification of the tender documents listed in Clause 3.9 which may become necessary as a result of the pre-tender meeting shall be made by KPC exclusively through the issue of an Addendum pursuant to Clause 3.7 and not through the minutes of the pre-tender meeting.
(b) Non-attendance at the pre-tender meeting will not be cause for disqualification of a bidder.
3.16 Format and signing of tender
3.16.1 The tenderer shall prepare his tender as outlined in this tender document and mark appropriately one set “ORIGINAL “and the other “COPY”.
3.16.2 The copy of the tender and Bills of Quantities shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to sign on behalf of the tenderer. All pages of the tender where amendments have been made shall be initialled by the person or persons signing the tender.
3.16.3 The complete tender shall be without alterations, interlineations or erasures, except as necessary to correct errors made by the tender, in which case such corrections shall be initialled by the person or persons signing the tender.
SUBMSSION OF TENDERS. This is a two-envelope tender
3.17 Sealing and marking of tenders
3.17.1 The tenderer shall seal the Mandatory documents, Technical Proposal and Financial Proposal of the tender in separate envelopes duly marked mandatory, technical proposal and financial proposal. The envelopes shall then be sealed in an outer envelope.
a) The mandatory documents shall be as listed in the instruction to tender (shall contain mandatory requirements for both the local and foreign firm where firms enter into a partnership agreement) – the tender security shall form part of the mandatory requirements
b) The Technical Proposal shall constitute the following documents
i) Tender Submission letter ii) Tender Questionnaire iii) Methodology for carrying out the assignment iv) Financial capability v) Schedule of Plant and Equipment vi) Details of contracts of similar nature vii) Schedule of on-going projects viii) Key personnel with assigned tasks
Page 10 ix) Detailed signed CV’s of proposed technical staff x) Litigation history xi) Power of Attorney xii) Details of sub-contractors xiii) Declaration forms duly filled xiv) Programme of works xv) List of documents and reports to be submitted to the Client
c) The Financial Proposal shall constitute i) Form of Tender ii) Priced Bills of Quantities/Schedule of rates
3.17.2 The inner and outer envelopes shall be addressed to KPC at the address stated in the Appendix to Instructions to Tenderers and bear the name and identification of the Contract stated in the said Appendix with a warning not to open before the date and time for opening of tenders stated in the said Appendix.
3.17.3 The inner envelopes shall each indicate the name and address of the tenderer to enable the tender to be returned unopened in case it is declared “late”, while the outer envelope shall bear no mark indicating the identity of the tenderer.
3.17.4 If the outer envelope is not sealed and marked as instructed above, KPC will assume no responsibility for the misplacement or premature opening of the tender. A tender opened prematurely for this cause will be rejected by KPC and return to the tenderer.
3.18 Deadline for submission of tenders
3.18.1Tenders must be received by KPC at the address and on the date and time specified in the invitation to tender.
Tenders delivered by hand must be placed in the “tender box” provided in the office of KPC.
Proof of posting will not be accepted as proof of delivery and any tender delivered after the above stipulated time, from whatever cause arising will not be considered.
Bulky tenders which cannot be placed in the tender box will be received by KPC as indicated in the Appendix to instructions to tenders.
3.18.2 KPC may at its discretion, extend the deadline for the submission of tenders through the issuance of an Addendum in accordance with clause 3.7, in which case all rights and obligations of KPC and the tenderers previously subject to the original deadline shall thereafter be subjected to the new deadline as extended.
Page 11 3.18.3 Any tender received by KPC after the prescribed deadline for submission of tenders will be returned unopened to the tenderer.
3.19 Modification and withdrawal of tenders
3.19.1 The tenderer may modify or withdraw his tender after tender submission, provided that written notice of the modification or withdrawal is received by KPC prior to the prescribed deadline for submission of tenders.
3.19.2 The tenderer’s modification or withdrawal notice shall be prepared, sealed, marked and dispatched in accordance with the provisions for the submission of tenders, with the inner and outer envelopes additionally marked “MODIFICATION” or “WITHDRAWAL” as appropriate.
3.19.3 No tender may be modified subsequent to the deadline for submission of tenders
3.19.4 No tender may be withdrawn in the interval between the deadline for submission of tenders and the period of tender validity specified on the tender form. Withdrawal of a tender during this interval will result in the forfeiture of the Tender Surety.
3.19.5 Subsequent to the expiration of the period of tender validity prescribed by KPC, and the tenderer having not been notified by KPC of the award of the Contract or the tenderer does not intend to conform with the request of KPC to extend the period of tender validity, the tenderer may withdraw his tender without risk of forfeiture of the Tender Surety.
TENDER OPENING AND EVALUATION
3.20 Tender opening
3.20.1 KPC will open the tenders in the presence of the tenderer’s representatives who choose to attend at the time and location indicated in the Invitation to Tender. The tenderers’ representatives who are present shall sign a register evidencing their attendance.
3.20.2 Tenders for which an acceptable notice of withdrawal has been submitted, pursuant to clause 3.19 will not be opened. 3.20.3 KPC will examine the tenders to determine whether they are complete, whether the requisite Tender Securities have been furnished, whether the documents have been properly signed and whether the tenders are generally in order.
3.20.4 At the tender opening, KPC will announce the tenderer’s names, total tender price, tender price modifications and tender withdrawals, if any, the presence of the requisite Tender Security and such other details as KPC may consider appropriate. No tender shall be rejected at the tender opening except for late tenders.
Page 12 3.20.5 KPC shall prepare minutes of the tender opening including the information disclosed to those present.
3.20.6 Tenders not opened and read out at tender opening shall not be considered further for evaluation, irrespective of the circumstances. Any tender received after the deadline for submission of tender shall be returned to the tenderer unopened.
3.21 Process to be confidential
3.21.1 After the public opening of tenders, information relating to the examination, clarification, evaluation and comparisons of tenders and recommendations concerning the award of Contract shall not be disclosed to tenderers or other persons not officially concerned with such process until the award of Contract is announced.
3.21.2 Any effort by a tenderer to influence KPC in the process of examination, evaluation and comparison of tenders and decisions concerning award of Contract shall result in the rejection of the tenderer’s tender.
3.22 Clarification tenders
3.22.1 To assist in the examination, evaluation and comparison of tenders, KPC may ask tenderers individually for clarification of their tenders, including breakdown of unit prices. The request for clarification and the response shall be in writing or by cable, facsimile or telex, but no change in the price or substance of the tender shall be sought, offered or permitted except as required to confirm the correction of arithmetical errors discovered by KPC during the evaluation of the tenders in accordance with clause 3.24.
3.22.2 No Tenderer shall contact KPC on any matter relating to his tender from the time of the tender opening to the time the Contract is awarded. If the tenderer wishes to bring additional information to the notice of KPC, he shall do so in writing.
3.23 Determination of responsiveness
3.23.1 Prior to the detailed evaluation of tenders, KPC will determine whether each tender is substantially responsive to the requirements of the tender documents.
3.23.2 For the purpose of this clause, a substantially responsive tender is one which conforms to all the terms, conditions and specifications of the tender documents without material deviation or reservation. A material deviation or reservation is one which affects in any substantial way the scope, quality, completion timing or administration of the Works to be undertaken by the tenderer under the Contract, or which limits in any substantial way inconsistent with the tender documents, KPC’s rights or the tenderers obligations under the Contract and the
Page 13 rectification of which would affect unfairly the competitive position of other tenderers who have presented substantially responsive tenders.
3.23.3 Each price or unit rate inserted in the Bills of Quantities shall be a realistic estimate of the cost of completing the works described under the particular item including allowance for overheads, profits and the like. Should a tender be seriously unbalanced in relation to KPC’s estimate of the works to be performed under any item or groups of items, the tender shall be deemed not responsive.
3.23.4 A tender determined to be not substantially responsive will be rejected by KPC and may not subsequently be made responsive by correction of the non- conforming deviation or reservation.
3.24 Correction of errors
i. KPC will evaluate Tenders determined to be substantially responsive to the requirements of the tender document.
ii. There shall be no correction of errors
iii. The tender sum as submitted and read out during the tender opening shall be absolute and final and shall not be subject of correction, adjustment or amendment in any way by any person or entity 3.25 Conversion to single currency
3.25.1 For comparison of tenders, the tender price shall first be broken down into the respective amounts payable in various currencies by using the selling rate or rates of the Central Bank of Kenya ruling on the date thirty days (30) days before the final date for the submission of tenders.
3.25.2 KPC will convert the amounts in various currencies in which the tender is payable (excluding provisional sums but including Day works where priced competitively) to Kenya Shillings at the selling rates stated in clause 3.25.1
3.26 Evaluation and comparison of tenders
3.26.1 KPC will evaluate only tenders determined to be substantially responsive to the requirements of the tender documents in accordance with clause 3.23
3.26.2 If the lowest evaluated tender is seriously unbalanced and/or front loaded in relation to KPC’s estimate of the items of work to be performed under the Contract, KPC may require the tenderer to produce detailed price analyses for any or all items of the bills of Quantities, to demonstrate the relationship between those prices, proposed construction methods and schedules. After evaluation of the price analyses, KPC may require that the amount of the Performance Security set forth in clause 3.29 be increased at the expense of the successful tenderer to a level sufficient to protect KPC against financial loss in the event of subsequent default of the successful tenderer under the Contract.
Page 14
3.26.3 The tender evaluation committee shall evaluate the tender within 15 days of the date of opening the tender.
3.26.4 KPC may at any time terminate procurement proceedings before award and shall not be liable to any person for the termination.
3.26.5 KPC shall give prompt notice of the termination to the tenderers and on request give its reasons for termination within 14 days of receiving the request from any tenderer.
3.26.6 Persons not officially involved in the evaluation of tender shall not attempt in any way to influence the evaluation.
3.26.7 Any person who has a conflict of interest with respect to the procurement shall not participate in the procurement proceedings.
AWARD OF CONTRACT
3.27 Award
3.27.1 Subject to clause 3.27.2 KPC will award the Contract to the tenderer whose tender is determined to be substantially responsive and is lowest bidder evaluated.
3.27.2 KPC reserves the right to accept or reject any tender, and to annul the tendering process and reject all tenders, at any time prior to award of Contract, without thereby incurring any liability to the affected tenderers or any obligation to inform the affected tenderers of the grounds for KPC’s action.
3.28 Notification of award and signing of the contract
3.28.1 Prior to the expiration of the period of tender validity prescribed by KPC, KPC will notify the successful tenderer in writing that his tender has been accepted and at the same time notify the unsuccessful tenderers that their tenders have not been successful. This letter (hereinafter and in all Contract documents called “Letter of Acceptance”) shall name the sum (hereinafter and in all Contract
3.28.2 Notification of award shall not constitute the formation of a Contract until the parties sign a formal contract.
3.28.3 Within twenty-eight (28) days of receipt of the contract form from KPC, the successful tenderer shall sign the form and return it to KPC together with the required Performance Security.
3.28.4 The parties to the contract shall have it signed within 30 days from the date of notification of contract award unless there is an administrative review request.
Page 15 3.29 Performance guarantee
3.29.1 Within Twenty-eight (28) days of receipt of the notification of award from KPC, the successful tenderer shall furnish KPC with a Performance Security in an amount stated in the Appendix to Instructions to Tenderers.
3.29.2 The Performance Security to be provided by the successful tenderer shall be an unconditional Bank Guarantee issued at the tenderer’s option by an established and a reputable Bank approved by KPC and located in the Republic of Kenya.
3.30 Advance payment
3.30.1 There shall be no advance payment in this project.
3.31 Corrupt or fraudulent practices
3.31.1 KPC requires that tenderers observe the highest standard of ethics during the procurement process and execution of contract. A tenderer shall sign a declaration that he has not and will not be involved in corrupt and fraudulent practices.
Page 16 APPENDIX TO INSTRUCTIONS TO TENDERERS
Instructions to Particulars of Appendix to Instructions to Tenderers Tenderers Reference Clause 3.2.2 The tenderer shall provide the following information regarding this participation for the local partner: • Full identity of the local firm. • Certificate of Incorporation of the company/Business Registration of the local firm. • Valid KRA Tax Compliance Certificate of the local firm. • Registration with National Construction Authority .The local firms should provide NCA registration certificates as detailed under clause 1.4 (iv) under the Mandatory requirements - • The local firm’s undertaking to abide by the Public Procurement and Disposal Act, 2015 and the regulations 2006 thereto. • A signed statement to confirm that the local firm is not limited or disqualified under the provisions of The Public Procurement and Disposal Act, 2015 and regulations, in force in Kenya. • Sections of the work to be executed by the local firm. • The local firm’s relevant experience for the section of the works assigned by the main contractor. • The local firm’s financial capability. Attach audited accounts for the last three years to demonstrate financial capability for undertaking the project. • The local firm’s availability of Human Resources. The tenderer shall demonstrate availability of necessary staff with adequate qualifications, capability and experience to undertake the assignment. All the key personnel must be able to effectively communicate in the English language. • The local firm’s availability of equipment. The local partner shall submit a list of the major equipment proposed for carrying out the assigned component of the works, including details of ownership (if hired or owned equipment). Clause 3.17.2 Client’s address: - The Managing Director, Kenya Pipeline Company Limited, Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box 73442–00200, Nairobi, Kenya. Clause 3.18.1 Bulky tenders will be received at: Kenpipe Plaza Tender box located at Ground Floor Kenya Pipeline Company Limited HQ
Page 17 Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box 73442–00200, Nairobi, Kenya Clause 3.29.1 Performance Guarantee shall be: 10 percent of the contract price
3.32 Technical Evaluation Criteria
KPC will carry out technical evaluations of the bids first, which shall be scored based on the evaluation criteria given below. Only tenderer’s who garner at least 50% in each of the eleven (11) evaluation criteria and attain an overall score of 75% shall qualify to have their financial submissions opened and evaluated.
Bidders are therefore requested to carefully read the qualification criteria and furnish authentic and complete information in response. KPC shall carry out due diligence to ascertain the accuracy of the information provided.
Documentary evidence may be in the form of literature, drawings and data, diagrams, photographs, catalogues, illustrations and any other information which is required for evaluation purposes. Such information shall clearly illustrate the bidder’s ability to undertake the project.
Item Criteria Max Score 1(a) Experience and Past Performance 20 max The bidder shall provide reference letters and documentary proof from their clients on the clients letter head of successful design and construction of at least three cross country oil/gas pipeline in an EPC contract during the last 15 years and this must be in EPC (turnkey) project. Each pipeline shall be of minimum distance of 20 km and of any diameter ranging from 10” - 48” and to API 5L specifications.
i. A bidder who provides evidence for one (1) project successfully completed as described above shall earn 5 marks. ii. A bidder who provides evidence for Two (2) projects successfully completed as described above shall earn 10 marks. iii. A bidder who provides evidence for Three (3) projects successfully completed as described above shall earn 20 marks. The documentary proof shall be in the form of Completion Certificates from the clients and any other documentary evidence showing that the pipeline met the above specifications and diameter range and that the projects were carried out in an EPC (turnkey approach).
Page 18 1(b) Experience in Design , Construction ,testing and commissioning of Cathodic Protection systems for replaced pipeline 10 Max The bidder shall provide reference letters and documentary proof from their clients on the clients letter head of successful design and construction of Cathodic Protection systems for at least three cross country oil/gas for replaced segment of a pipeline during the last 15 years. Each pipeline shall be of minimum distance of 20 km and of any diameter ranging from 10” - 48” and to API 5L specifications.
iv. A bidder who provides evidence for one (1) project successfully completed as described above shall earn 2.5 marks. v. A bidder who provides evidence for Two (2) projects successfully completed as described above shall earn 5 marks. vi. A bidder who provides evidence for Three (3) projects successfully completed as described above shall earn 10 marks. The documentary proof shall be in the form of Completion Certificates and any other documentary evidence from the client. 2 Pipeline System Design 10max The bidder shall provide preliminary design for the proposed pipeline system based on international recognizable standards to meet the project objective. Bidders are to provide: - a) Draft Hydraulic analysis based on Line 1 elevations provided i) State software used (1 mark) ii) Sample calculation on head loss (1 Mark) iii) Determination of pipe wall thicknesses for the entire segment of the line intended for replacement. The tolerance for wall Thickness should meet criteria provided under Table 9 of API specification 5L. (3marks) iv) Draft Surge analysis report (2 marks) b) Design and select suitable locations of Valve Chambers where necessary. (3Marks ) 3 Financial Capability 2 max The bidder shall provide proof in form of certified audited accounts for the last five (5) financial years Turnover i) A bidder who submits a combined turnover of less than US $ 10 million will not be scored. ii) A bidder who submits an average combined turnover of equal or more than US $ 10 million for the last 5 years (2marks) 4 Qualifications and Experience of Key Personnel 10 max a) Project Manager – (2 Marks) The bidder shall provide detailed curriculum vitae of the proposed Project Manager who has designed and supervised
Page 19 the construction of Oil Pipelines. The candidate should be Registered/Chartered Engineers or Engineers affiliated to regulating body in country of origin and holders of a Bachelor’s Degree in Mechanical, Civil, Petroleum Engineering or equivalent. Minimum experience of 15 years i) A bidder who provides staff with less than 10 years will not be scored. ii) A bidder who provides staff with 10 – 15 years will score (1 marks) iii) A bidder who provides staff with more than 15 years will score (2 marks) Documents to be submitted are: signed CV as a minimum capturing key competence, projects handled highlighting similar projects and signed by both candidate and the person with power of attorney, Notarized copies of relevant degree certificates and copies of certificates issued by the Engineers regulatory bodies from the country of origin.
b) Health, Safety and Environment (HSE) Officer – (1 Mark) The bidder shall provide detailed curriculum vitae of the proposed HSE staff with internationally recognized certification and have at least 10 years’ experience in HSE matters in the oil /gas pipeline construction. (Attach copies of certificates) i) 1 Mark shall be awarded to the person who meets this requirement. ii) No marks shall be awarded to a person without HSE qualification. Documents to be submitted are: signed CV as a minimum capturing key competences, projects handled highlighting similar projects and signed by both candidate and the person with power of attorney, Notarized copies of relevant certificates c) Civil Engineer – (1 Marks) The bidder shall provide detailed curriculum vitae of the proposed Civil Engineer, Registered/Chartered Engineer affiliated to regulating body in country of origin. The Engineer shall be a graduate with a Civil Engineering Degree with a minimum of 10 years’ experience with at least 8 years in the Oil and Gas industry. i) A bidder who provides staff with above qualifications but with less than 6 years will not be scored. ii) A bidder who provides staff with that above qualification with 7-10 years will score (½ mark) iii) A bidder who provides staff with the above qualifications and with more than 10 years will score (1 marks) Documents to be submitted are : signed CV as a minimum capturing key competences ,projects handled highlighting similar
Page 20 projects and signed by both candidate and the person with power of attorney, Notarized copies of relevant degree certificates and copies of certificates issued by the Engineers regulatory bodies from the country of origin. d).Mechanical Engineer/Chemical Engineer (2 Marks) The bidder shall provide a detailed curriculum vitae of the proposed Mechanical/ Chemical Engineer, Registered/Chartered/ affiliated to regulating body in his country of origin. The Engineer shall be a graduate with Bachelor’s Degree in Mechanical Engineering or equivalent with a minimum of 10 years’ experience with at least 8 years in the Oil and Gas industry. i) A bidder who provides staff with less than 6 years will not be scored. ii) A bidder who provides staff who meets the above qualification but with 7-10 years will score (1 mark) iii) A bidder who provides staff who meets the above qualifications but with more than 10 years will score (2 marks)
Documents to be submitted are : signed CV as a minimum capturing key competences ,projects handled highlighting similar projects and signed by both candidate and the person with power of attorney, Notarized copies of relevant degree certificates and copies of certificates issued by the Engineers regulatory bodies from the country of origin. f). Electrical Engineer – (1 Mark) The bidder shall provide a detailed curriculum vitae of the proposed Electrical Engineer, Registered/Chartered Engineer or Engineer affiliated to regulating body in country of origin. The Engineer shall be a graduate with Bachelor’s Degree in Electrical or its equivalent with a minimum of 8 years’ experience in electrical installations.
i) A bidder who provides staff who meets the above qualifications but with less than 6 years will not be scored. ii) A bidder who provides staff meets the above qualification but with 6-8 years will score (1 mark) Documents to be submitted are : signed CV as a minimum capturing key competences ,projects handled highlighting similar projects and signed by both candidate and the person with power of attorney, Notarized copies of relevant degree certificates and copies of certificates issued by the Engineers regulatory bodies from the country of origin. g). Corrosion Control Engineer – (1 Mark) The bidder shall provide a detailed curriculum vitae of the
Page 21 proposed Corrosion Control Engineer certified by NACE at level CP 4 Specialist. The Engineer shall be a graduate with a minimum of 8 years’ experience in Corrosion Control with at least 4 years’ experience in Oil and Gas Industry. i) A bidder who provides staff with less than 6 years will not be scored. ii) A bidder who provides staff with 6-8 years will score (1 mark) Documents to be submitted are : signed CV as a minimum capturing key competences ,projects handled highlighting similar projects and signed by both candidate and the person with power of attorney, Notarized copies of relevant degree certificates and copies of certificates issued by NACE.
h).QA/QC Engineer – (2 Mark) The bidder shall a detailed curriculum vitae of the proposed QA/QC personnel with minimum qualification of a diploma in any Engineering discipline with certification in Non-destructive testing (NDT). The personnel shall have a minimum of Level II certification with minimum of 10 years’ experience. (Attach copies of certificates). i) A bidder who provides staff with minimum qualifications but without NDT certification will not be scored ii) A bidder who provides staff with minimum qualification and with the NDT certification will score 1 marks Documents to be submitted are: signed CV as a minimum capturing key competence, projects handled highlighting similar projects and signed by both candidate and the person with power of attorney and copies of certificates issued for NDT certification. 5 Construction Plant and Equipment 10 Max. The bidder shall provide a schedule of plant and equipment ownership in the format provided in the standard form Key plants include: - i) Side Booms at least 3No. (1 mark each) ii) HDD equipment/or auger bore (1 mark) iii) DC welding generators (minimum capacity 125 KVA) – at least 6 No. (½ mark each) iv) NDT equipment – at least 2 sets (1 mark) v) Cranes with 25 Ton capacity – at least 2 No. (1 mark each) vi) Excavators – at least 2 No. (2 mark each) vii) Air Compressors of at least 600 CFM – 2 No. (2 mark each) viii) Holiday test equipment and pipe locator (2 marks) (one mark for each) ix) Any other equipment necessary (1 mark for bidders who
Page 22 list any other) Bidders Must show proof of ownership. The documentary evidence shall be Log Book , Purchase receipt , bill of lading of the equipment , etc. 6 Methodology of work 10 Max. The bidder shall provide a works methodology clearly indicating the following activities: - i) Pipeline system design. (1 mark) ii) Hydrotest plan (2marks) iii) Procurement Plan. (1 mark) iv) Testing and commissioning Plan. (2 mark) v) Quality Assurance and Quality control of Work Plan (2 mark) vi) Job Safety Analysis (JSA) tailored for the project and taking due consideration that there is an existing pipeline that is aged. (1 mark) vii) Road and River crossings. (1 mark) Full score or zero marks shall be awarded depending on the completeness of the submission. 7 Methodology for Tie-in of the New Pipeline to the existing Old 5 max. pipeline. Bidders shall be required to give a comprehensive acceptable Methodology that shall be adopted to Tie-in the existing pipeline to a new pipeline considering that the New Pipeline joined to the old pipeline shall be piggable. The details to be captured shall include but not limited to: Mechanical works, Product drain, product storage at site, etc, In their submission bidders are required to quote all the relevant and applicable international standards and codes for this work and the safety measures that shall apply under this circumstance e.g. API, ASME among others. (Maximum 5 marks for comprehensive relevant procedure, otherwise 0) 8 Methodology for Corrosion Control Works 4 max Bidders shall be required to give a comprehensive acceptable Methodology that shall be adopted for the design, procurement and construction of an appropriate Cathodic Protection System for the new Pipeline while taking into account of all structures within vicinity as follows; - - The new segment shall share the corridor with 20-inch API 5l x52 pipeline tagged as line 5 (constructed in year 2018) and has a separate CP system - The new Pipeline shall be enjoined to an old pipeline age 40 years. Its initial design life was 25 years. - This shall be guided by the NACE RP 0169, NACE RP 0177 and any other relevant specification as provided for in this project (Score 4 marks for comprehensive and relevant procedure , otherwise
Page 23 0) 9 Environmental Impact Assessment (EIA) 5 max. The bidder shall be required to undertake EIA study prior to commencement of the works. The firm undertaking the exercise shall possess a valid NEMA license. Firms/Experts undertaking the study shall; a) Be locally based (Based in Kenya) b) Have adequate experience in EIA studies including petroleum sector. The lead experts shall have the following: - i) 10 years’ experience in the field with at least 2 years being in Petroleum Sector and with valid NEMA practicing license (1 mark) ii) Hazard assessment expert - 5 years in petroleum sector and with Valid NEMA practising license (1 mark) iii) EIA Associate experts - 5 years with NEMA current practicing license (1 marks) iv) Present an adequate proposed methodology and work plan (2 marks) 10 The client considers abandoning or removing the old pipeline 10 Marks after decommissioning. The bidders shall be required to provide draft proposal on the following: - (a) . Provide a comprehensive methodology for decommissioning the 14-inch API 5L x52 pipe (b) . Provide a comprehensive draft proposal report on abandonment of the pipeline including cost associated with abandoning the 15 km of 14-inch API specification 5L pipeline 4marks (c) . Provide a comprehensive draft proposal report on removal of the pipeline and disposal of the same at a location to be identified by the client. The report should include associated cost including negative salvage value 4marks (d) . An analysis report on Cost versus the Benefit of the two method here-in-above i.e. (b) and (c).2 marks Note Bidders
11 1 Bidders are expected to provide an acceptable program of 4Max works capturing all critical activities on Procurement, Engineering, construction, Test and commissioning of the new replacement pipeline. a) A bidder who completes the works in 10 months or less scores 2 Marks (otherwise 0) 2 Bidders are expected to provide an acceptable program of works capturing all critical activities on Decommissioning the old pipeline b) A bidder who complete the works in 2 months or less
Page 24 scores 2 Marks (otherwise 0)
Page 25 SECTION IV
4.1 CONDITIONS OF CONTRACT
Part I: General Conditions of Contract
The applicable Conditions of Contract shall be the General conditions forming part 1 of the “Conditions of Contract for EPC/ Turnkey Projects, (First Edition, 1999) prepared by the Federation Internationale des Ingenious – Conseils (FIDIC)”. i. The conditions are subject to variations and additions set out in Part II thereof titled Particular Conditions of Contract and in the Appendix to Form of Tender. ii. The Particular Conditions take precedence over the General Conditions of Contract. iii. Copies of the FIDIC Conditions of Contract can be obtained from:-
FIDIC Secretariate P.O. Box 86 1000 Lausanne 12 Switzerland
Fax: 41 21 653 5432 Telephone 41 21 653 5003
Page 26 Part II: Particular Conditions of Contract
The Employer (Sub-clause 1.1.2.2)
The Employer is Kenya Pipeline Company Limited.
The Employer’s Representative (Sub-clause 1.1.2.4)
The Employer’s representative is the Maintenance Manager or his appointed representative.
Commencement Date (Sub-clause 1.1.3.2)
The date for commencement of the Works is 14 days after Employer’s representative’s instruction to commence.
Time for Completion (Sub-clause 1.1.3.3) The Time for Completion at most should be 10 months.
Communications (Clause 1.3)
The system of communication shall be as defined under this clause including signed PDF version.
Language and Law (Clause 1.4)
The version in English language (ruling language) shall prevail. The Law governing the contract shall be Kenyan Law
Priority of documents (Clause 1.5) As defined in the contract agreement.
Performance Security (Clause 4.2) Within Twenty-eight (28) days of receipt of the notification of award from KPC, the successful tenderer shall furnish KPC with a Performance Security in an amount stated in the Appendix to Instructions to Tenderers.
Delay in Completion (Clause 8.7) Failure to meet the Time for Completion entitles the Employer to reduction in Contract Price as follows:
Amount per day is 0.1% of the contract sum.
Prolonged delay (Clause 8.7)
Page 27 Maximum amount recoverable from the EPC Contractor by the Employer is 10% of the contract sum
Advanced Payment (Clause 14.2)
There shall be no advanced payment
Currencies of payment (Clause 14.15)
Payments shall be made in US Dollars and/or Kenya Shillings.
Rates of Exchange (Clause 14.15)
The rates of exchange for the purpose of the Contract are: The prevailing exchange rates shall be the Central Bank of Kenya (CBK) mean rate 30 days before the final date for the submission of tenders.
Termination by Employer (Clause 15.2) The Employer shall be entitled to terminate the Contract if the Contractor: a) fails to comply with Sub-clause 4.2 [Performance Security] or with a notice under Sub-clause 15 .1 [Notice to Correct], b) abandons the Works or otherwise plainly demonstrates the intention not to continue performance of his obligations under the Contract, c) without reasonable excuse fails to proceed with the Works in accordance with Clause 8 [Commencement, Delays and Suspension], d) subcontracts the whole of the Works or assigns the Contract without the required agreement, e) (becomes bankrupt or insolvent, goes into liquidation, has a receiving or administration order made against him, compounds with his creditors, or carries on business under a receiver, trustee or manager for the benefit of his creditors, or if any act is done or event occurs which (under applicable Laws) has a similar effect to any of these acts or events, or f) gives or offers to give (directly or indirectly) to any person any bribe, gift, gratuity, commission or other thing of value, as an inducement or reward: i. for doing or forbearing to do any action in relation to the Contract, or ii. for showing or forbearing to show favour or disfavour to any person in relation to the Contract, iii. or if any of the Contractor's Personnel, agents or Subcontractors gives or offers to give (directly or indirectly) to any person any such inducement or reward as is described in this sub-paragraph (9. However, lawful inducements and rewards to Contractor's Personnel shall not entitle termination.
In any of these events or circumstances, the Employer may, upon giving 14 days' notice to the Contractor, terminate the Contract and expel the Contractor from the Site.
Page 28 However, in the case of sub-paragraph (e) or (f), the Employer may by notice terminate the Contract immediately. The Employer's election to terminate the Contract shall not prejudice any other rights of the Employer, under the Contract or otherwise.
The Contractor shall then leave the Site and deliver any required Goods, all Contractor's Documents, and other design documents made by or for him, to the Employer. However, the Contractor shall use his best efforts to comply immediately with any reasonable instructions included in the notice; (i) for the assignment of any sub- contract, and (ii) for the protection of life or property or for the safety of the Works.
After termination, the Employer may complete the Works and/or arrange for any other entities to do so. The Employer and these entities may then use any Goods, Contractor's Documents and other design documents made by or on behalf of the Contractor.
The Employer shall then give notice that the Contractor's Equipment and Temporary Works will be released to the Contractor at or near the Site. The Contractor shall promptly arrange their removal, at the risk and cost of the Contractor. However, if by this time the Contractor has failed to make a payment due to the Employer, these items may be sold by the Employer in order to recover this payment. Any balance of the proceeds shall then be paid to the Contractor.
Resolution of Disputes
KPC and the EPC Contractor shall make every effort to resolve, amicably by direct informal negotiation, any disagreement or dispute arising between them under or in connection with the contract.
If, after thirty (30) days from the commencement of such informal negotiations both parties have been unable to resolve amicably a contract dispute, either party may require adjudication in the High Court of Kenya.
Page 29 4.3 DESIGN BASIS MEMORANDUM 4.3.1 General This section covers the extent of facilities to be provided under the project, site conditions, the design and operating criteria to be met and the conditions to be adopted in the detail design and engineering of the facilities.
The EPC Contractor shall be responsible for the detailed engineering design and, procurement and construction of the works including the supply of labour, plant and materials necessary to complete the construction of the 15km stretch. The stretches are defined in the Title page of the Tender document.
The EPC Contractor shall, using this Design Basis Memorandum, develop and submit to KPC a fully detailed programme of activities and time scales necessary to carry out the works. The programme shall take full account of KPC’s pipeline operations and shall exploit shutdowns/ windows in liaison with KPC especially during connectivity to the existing line.
The EPC Contractor’s schedule and programme shall be submitted to KPC for approval prior to carrying out any of the works.
The specifications given herein are for the EPC Contractor’s guidance regarding the standards applicable to the works.
All materials, plant and other supplies to be provided in the Works shall be new, and of the most recent or current model and incorporating all recent improvements in design and materials.
The maximum design temperature for above ground piping and equipment shall be 50°C. Minimum design temperature shall be 10°C. The maximum and minimum design temperatures for the pipelines shall be 40°C and 10°C respectively.
The relative humidity typically ranges from 32% (comfortable) to 98% (very humid) over the course of the year, rarely dropping below 21% (dry) and reaching as high as 100% (very humid).
4.3.2 Summary of Scope of Works The main elements of the works shall include but not limited to the following: -
KM 38-43 & 390-400 Samburu and Konza respectively
i. Undertaking an Environmental and Social Impact Assessment (ESIA) Study for the proposed pipeline route. The study must comply with the national and applicable international legislative provisions and principles. The study must also satisfy the requirements of NEMA leading to issuance of a NEMA license
Page 30 ii. Undertake Geotechnical Investigation and Topographical Survey iii. Design, supply and install tie ins to the existing facilities iv. Design, select, Supply, string, ditch after excavation and install API 5L specifications pipes with appropriate wall thickness as may be necessary v. Identify, locate all existing services and protect as necessary vi. Design and locate valve chambers complete with mainline valves to rated class vii. Carry out hydrotest on the newly laid pipelines before joining to the old pipeline. viii. Drain the product from the lowest elevation point by tapping a 3-inch tee-off fitted with a ball valve. ix. Hold the product temporary storage tanks at the site. This exercise shall be supervised by the employer. The temporary holding tanks shall thereafter be the property of the employer. Prior to the draining, the contractor shall submit for inspection by the employer the suitability of the portable temporary storage tanks to be used for the works. x. Transport the drained product under supervision of the employer to the designated depot. xi. Cut the drained line at the designated ends to be marked by the employer. xii. The newly constructed pipeline section shall be joined to the existing pipeline, both upstream and downstream of the cut point, by welding in accordance to the requirements of API1104 standard. xiii. Provision of Operation and Maintenance manuals for equipment. xiv. Provision of two-year operational spares and specialized maintenance tools for valves. xv. Provision of ‘As-Built’ drawings. xvi. Commission existing pipeline. The extent of decommissioning shall include cleaning and capping the existing pipeline pending retirement. The client may opt for either abandonment or removal of the existing pipeline. xvii. Carry out soil resistivity survey and considering other existing structures within vicinity and design an appropriate secondary CP system and integrate to the existing, install, test and commission xviii. Provide a financial proposal for removal of the pipeline xix. Provide a financial proposal for abandonment of the pipeline
4.3.2.1 Pipeline Design and Installation The general route of the proposed pipeline shall follow that of the existing 14- inch pipeline’s Right of way with a centre displacement of about 5m to the right downstream in most of the sections. The detailed engineering design will incorporate the pipeline route drawings that show the detailed pipeline alignment and which include location of underground/other buried services. The Contractor shall at his/her own expense carry out all necessary survey to locate underground/buried services such as electric/fibre optic cables, telephone lines, gas lines, water pipelines etc. and other permanent structures in order to protect and prevent any accident or damage to third parties’ property. The EPC contractor will be expected to take into account the following tasks during design: -
Page 31
a) Hydraulic Analysis b) Surge Analysis c) Tie - ins to the existing pipeline both at KM 38, 43 along Samburu Areas and KM390,400 along Konza Areas. d) Operation and Control Philosophy e) Interface Management f) Corrosion Control both Internal and External g) Corrosion Monitoring h) Hydraulic Protection in the Crossings i) River, Road and utility Cross
A. Specifications 4.4.1 Mechanical Works
A . Design Codes and Standards a) In-Station Piping Design of in-station piping shall be in accordance with ASME B31.3, “Process Piping”, supplemented as appropriate by the following codes of practice and standards: i. I.P. Model Code, Part 6 – “Pipeline Safety Code “. ii. ASME B31.4 – “Liquid Transportation Systems for Hydrocarbons, Liquid Petroleum Gas, Anhydrous Ammonia and Alcohols” The design philosophy with regard to safety and protection against overpressure shall be in accordance with API Recommended Practice 521, Latest Revision. b) Piping Design i. The EPC Contractor shall determine the piping pressure –Temperature rating class having due regard for product vapour pressures and friction losses in pipework as a minimum. Piping shall be designed for the maximum pressure of the piping class identified. The EPC Contractor shall produce piping specifications for each piping class and material and shall submit the same to KPC for approval. Prior to commencing manufacture of line pipe, the EPC Contractor shall on behalf of the manufacturer submit to KPC for approval detailed manufacturing procedures for each pipe diameter, heat treatment condition, wall thickness and product analysis. This shall include: Material procurement source: a. Limits on heat and product analysis including residual elements to be placed on the steelmaker. b. Material manufacturing details including steel making process, de- sulphuring, vacuum degassing, casting and rolling. c. Heat treatment procedures. d. Method of straightening, sizing, pipe finishing, stretch reduction and hydrostatic testing. e. Dimensional Tolerances. f. Quality Control, inspection and testing procedures. g. Pipe identification numbering scheme. ii. Design temperature range for exposed above-ground piping and equipment shall be in accordance with the Meteorological Data station obtainable from the website.
Page 32 iii. Design of structural attachments, welded direct to the pipe, shall be in accordance with ASME B31.3. iv. The EPC Contractor shall undertake an analysis of his proposed piping design to prove the adequacy or otherwise of piping flexibility. Where points at which excessive local stresses may be generated due to local restraints, such as guides, anchors, branch connections to equipment etc. are identified, the EPC Contractor shall undertake all necessary corrective actions. Such calculations shall be subject to KPC’s approval. v. Aboveground piping and equipment, which may be isolated by, block or check valves, shall be protected against overpressure due to liquid thermal expansion by ¾” x 1” thermal relief valves cascade. vi. Buried pipelines shall be factory applied polyethylene coated. The coating system shall comprise as a minimum three layers, an epoxy primer, co-polymer adhesive and extruded polyethylene. The coating shall be suitable for the maximum design temperature of 50degree Centigrade or thereabout. vii. Additional protection shall be afforded by an impressed current Cathodic protection system. viii. The design of the Cathodic protection system shall take account of interaction between the new pipeline and other pipelines within the same corridor. ix. Line-pipe used shall be to API specification 5L and as a minimum shall meet all the criteria set in Tables in the specification without any omission-The client will take keen interest on information provided in Tables 2 (Chemical properties), Table7 (Tolerances for Diameter), Table 9 (Tolerances for length). Latest Revision of the API 5L is applicable for all references. x. Prior to commencing manufacture of line pipe, the EPC Contractor shall submit to KPC for approval detailed manufacturing procedures for each pipe diameter, heat treatment condition, wall thickness and material analysis. xi. KPC shall attend Factory Acceptance Tests for all line-pipe as described. 4.4.1.2 Main line Valve Selection Philosophy The following philosophy shall be adopted in the selection of general service block and check valves. i. All valves shall be of tight shut-off design, employing resilient primary seals with metal-to-metal seat. ii. Valve drains shall, where provided, be plugged.
Specific valve requirements shall be as follows: - (a) General Service Block Valves i. Equipment isolation valves shall be full bore ball type to API 6D and “Fire Safe” to API 6FA or API 607. ii. Valves of 2” and above shall be of two piece bolted construction having a cast carbon steel body with flanged end connections. iii. Valves of 1½” and below shall be of three piece bolted construction with forged carbon steel body and socket weld end connections.
(b) General Service Check Valves i. Valves for general service applications size 2” and above shall be full bore swing- check design in accordance with API 594 or API 6D.
Page 33 ii. Swing-check valves shall have a cast carbon steel body with bolted top cover and flanged end connections. iii. Check valves for size 1½” and below shall be piston or ball type and shall be suitable for mounting in the horizontal or vertical plane as applicable. Valves shall be of forged carbon steel construction with socket weld end connections.
(c) Double Block and Bleed Valves (DBB) i. Valves used for manifold purposes shall be of the high integrity double block and bleed type having a reduced port tapered plug with retractable slips and renewable resilient seals. ii. The valves shall be installed such that the slips shall be accessible via the valve body base flange. iii. Valves are to be generally in accordance with API 6D and be pressure tested and inspected in accordance with API 6D or API 598. iv. The valves shall be fire safe to API 6FA or API 607. v. Valves shall be fitted with an automatic body bleed system with thermal relief, piped to the upstream side of the valve body. The piping arrangement shall also incorporate a manual bleed system. vi. Valves shall be supplied complete with leak detection system. (d) Thermal Relief Valves i. Thermal relief valves shall generally be ¾” x 1”, spring-loaded, safety-relief valves of conventional pattern. ii. Valves shall be of forged carbon steel construction with flanged end connections. iii. All thermal relief valves shall be installed together with isolation valves. (e) Pressure Relief Valves i. Pressure Relief Valves shall be of the direct acting, spring loaded type. ii. Valves shall be of forged carbon steel construction with flanged end connections. iii. All pressure relief valves shall be installed together with isolation valves. 4.4.1.3 Valve Operators i. Manually operated valves 10” and larger shall be equipped with gear operators. ii. Actuators for motorized valves shall be sized such that open/close times for all valves shall have an upper limit of approximately 20 seconds. iii. KPC shall attend Factory Acceptance Tests for all valves. 4.4.1.4 Piping Arrangement and General Design i. Piping shall be designed to avoid or minimize the creation of “dead legs”. ii. Buried in-station piping shall be kept to an absolute minimum. iii. Where it is necessary to bury process or drain piping within the station, it shall be tape wrapped. iv. Isolating joints protected by zinc electrodes or surge diverters shall be installed at the station boundary to electrically isolate the above ground station piping from the impressed current, Cathodically protected buried pipelines. Design of drains, vents and thermal relief facilities The following philosophy shall be adopted in the design of drains, vents and thermal relief facilities: a) Closed Bleed Drain System 1 The number of drains permanently connected into the closed-bleed drainage system shall be kept to a minimum. These shall be limited to
Page 34 thermal-relief valves and equipment drains required for maintenance purposes. b) General Drains and Vents 1 Drain points shall be provided where necessary at pipework low points within the station to permit drain-down of piping and equipment during testing, commissioning and maintenance. 2 The number of general drains and vents shall be kept to an absolute minimum. 3 Vents shall be positioned relative to local drain points such that sections of piping may be washed through or purged and gas-freed. Vents shall be provided at high points to ensure proper priming of piping and equipment. 4 Connections shall be of socket weld construction. 5 All vent and drain connections, other than closed-bleed drains, shall have valve open ends capped or plugged-off.
c) Thermal Relief 1 Thermal relief valves shall be arranged to discharge into the closed bleed drain system. 2 By-pass check valves around block valves shall not be used as a means of protection against overpressure due to thermal effects. 3 Piping headers of the same specification, divided into sections by check valves, shall be protected by a thermal relief valve on the extreme downstream section only. Where such header sections are two different specifications, relief valves shall be provided to protect each section. 4 Thermal relief connection design shall be similar to that for drains and vents. 5 Connections to equipment and piping to be protected shall be equipped with a ball valve upstream of the thermal relief valve. d) Valve Locks 1 All block valves for instrument, drain, vent or relief valve isolation service shall have locking plates fitted to facilitate locking in the open or closed position. A). Civil Works General The civil works will include site clearance, setting out, excavations for pipe laying, backfill, construction of all ducts, paved areas, pipe supports, tank foundations, reinstatement and all other civil works, including formwork, concreting, reinforcement, etc. a). Site Clearance and Setting Out
The sites shall be prepared to the levels and measurements approved by the Employer’s representative. Bench marks shall be established and constructed at the start of the works and shall be maintained for the period of the Contract. They shall refer to an approved datum. All work shall be as shown on the drawings or as directed by the Employer’s representative to the specified levels, depths, widths and tolerances. Prior to commencing construction, the EPC Contractor shall establish reference points to define the works.
Page 35
The EPC Contractor shall set out levels of the works at intervals as are required to do the works. Before commencement of any excavation, the site shall be surveyed in conjunction with the Employer’s representative to establish existing ground levels and these agreed levels shall form the basis for the calculation of quantities of any subsequent excavation and backfilling. These levels shall be taken before any topsoil has been removed. The EPC Contractor shall in the presence of the Employer’s representative set out the works in accordance with the drawings, making any changes the Employer’s representative may deem necessary and confirming the exact positions of other services e.g. Power cables, Communication cables etc.
During the progress of the Works, the EPC Contractor shall not remove, damage, alter or destroy in anyway whatsoever, any plot or survey beacons. He shall notify the Employer’s representative of the need to interfere with any beacon. The Employer’s representative shall approve any removal and reinstatement that he considers necessary. Should any beacon be found to be above or below the level of the finished Work, the EPC Contractor shall immediately report the same to the Employer’s representative’s representative. Should any beacon be damaged or destroyed by the EPC Contractor he shall forthwith report the damage to the Employer’s representative and the relevant authorities and shall be held liable for the cost of reinstatement thereof.
B).Trenching /Excavations
All excavations in open cut shall be the minimum necessary for the construction of the Works. Pipe trenches shall in no case exceed the trench width restrictions shown on the Drawings. For any trench excavated with battered or stepped sides that portion of the trench which extends from the formation to a point not less than 300 mm above the crown of the pipe when laid in its correct position shall be formed with vertical sides the minimum practical distance apart. In areas frequented by the public the maximum length of open trench in any one section shall not exceed 50 meters. For other areas the maximum length of open trench shall be subject to approval. No excavation with battered sides will be permitted in public highways private gardens or within 30 meters of any building or other structure. Bulk excavations shall be made to such sizes, depths and inclinations as the Engineer may direct or as may be necessary to construct the Works. Any excavated material stored on site for any purpose shall be deposited in such a manner that no damage and as little inconvenience as possible is caused or as directed by the Engineer. Where temporary crossings are required at points of access between adjoining properties and the public highway suitable steel plates shall be provided and maintained until the trench is refilled. A minimum clear carriageway width of 3 meters shall wherever possible be left for vehicular access. The Contractor shall comply with the procedures and requirements of the Police and the Authority having charge of the road surfaces. Where undertaking excavation works adjacent to tree planted areas and in road verges
Page 36 and central reservations the Contractor shall remove excavated material to temporary tip for the duration of excavation and construction operations.
C). Working around Existing Oil Lines and facilities When working in the vicinity of the existing oil line, the Contractor shall comply with the following: a) A hand excavated pilot hole shall be dug to determine the oil line invert level and position prior to any trench excavation in the oil line pipe reservation. b) The excavation for the works under construction shall be carried out by hand up to 2 meters either side of the existing oil line. c) Jackhammers (manually operated) may be used within 5 meters of the buried pipeline only after completion of hand excavation as detailed above. d) The use of Mechanical/Hydraulic rock-breakers and excavators is allowed beyond 5meters from the buried pipeline. e) The existing pipeline shall be supported and protected while the new valve pit is being constructed. f) On completion, the existing oil line shall be re-bedded in a minimum of 150 mm of naturally occurring soft sand. The remaining backfill shall be made up of selected fill, which shall be free from organic matter. The Engineer will require to be notified a minimum of 24 hours in advance, to witness the backfilling operation. g) Any damage caused by the Contractor to the external protective wrapping of the oil line shall be notified promptly to the Engineer for inspection prior to repair in accordance with Owner’s procedures by the Contractor. h) The Contractor shall provide supervision at all times whilst work is carried out adjacent to the existing oil line. D). Backfilling Prior to backfilling the Contractor shall clear excavations of all debris and foreign matter satisfaction. After the Engineer has approved the permanent works, the first 150 mm shall be covered by hand with lightly compacted selected excavated material free from clay lumps large stones or other material which may cause damage to the permanent works. The remainder of the excavation shall be filled with material deposited in layers not exceeding 150 mm thickness and each layer watered and compacted with vibrating trench roller, power rammer, or vibrating plate compactor to at least 95% modified A.A.S.H.T.O. (American Association of State Highway and Transportation Officials) optimum density, unless otherwise approved by the Engineer. All excavation below pad footings, column bases or any other bases for support of the permanent works shall, where directed by the Engineer, be backfilled with mass concrete Grade 10. Except in carriageways or paved areas the backfill material shall be brought up to existing ground level. When ground surfaces consist of sweet soil, the final layer of backfill shall be sweet soil of the same thickness as that previously existing.
Page 37 Any excavated material which is, in the opinion of the Engineer, unsuitable for backfill shall be removed from the site by the Contractor. Any deficiency of backfill shall be made good with suitable material from other areas of the site or imported as required. The Contractor shall ensure that all trenches/excavations are backfilled and no damage is caused to permanent works or adjacent structures.
E) Existing Services
The EPC Contractor shall be responsible for the location and protection of all local services and apparatus. He shall be responsible for liaison with any Statutory Undertaking, Local Authority, Private Company or Agency for the transmission of water, electricity and communications and for identification and protection of all cables, pipes, ducts, sewers, drains or any other services owned or operated by these organizations.
The EPC Contractor shall take every precaution to ensure that all existing services, pipes cables, boundary fence, drainage etc. within and near the line of excavation, are located, supported and safeguarded from damage. Any damage caused to any such facilities attributable to the EPC Contractor’s operations, his constructional traffic or his negligence shall be made good by the EPC Contractor at his own expense to the satisfaction of the Employer’s representative or responsible authority.
F). Reinstatement and landscaping, All areas shall be permanently reinstated to the satisfaction of the Employer’s representative. Surplus material, waste and rubbish shall be removed from the site and disposed of in manner approved of by the Employer’s representative. All hedges, trees, fences etc. shall be reinstated and the site left in a tidy and satisfactory condition. Grass seed, trees and shrubs used by the EPC Contractor in reinstatement and landscaping shall be approved by the Employer’s representative. The opening up of roads and footways and reinstatement of the same shall in all respects be carried out to the approval of the Employer’s representative. G). Stone Pitching Stone pitching to drains, inlets and outlets of culverts and around structure shall consist of sound un-weathered rock approved by the Employer’s representative. The stone as dressed shall be roughly cubical in shape with minimum dimensions of 150 x 150mm for normal thickness of stone pitching. The surface to receive the pitching shall be compacted and trimmed to slope and the stone laid, interlocked and rammed into the material to give an even finished surface. In areas where stone pitching has been damaged, the EPC Contractor shall identify such areas and notify the Employer’s representative for his agreement of the extent of the Works required and his approval and instructions to proceed with the Works. H). Instrumentation and Control Works a). None under this scope I). Fibre Optic Cable
Page 38 a) None under this scope J). Corrosion Control Works The EPC Contractor shall design, supply and install materials, for corrosion control and monitoring and any associated mitigation measures. The design for Cathodic protection system shall be based on the following minimum requirements :- • Minimum 25 years life, • Provide for an end life current demand of as per the NACE standards to protect entire surface of the buried pipe-work and associated facilities at the pump stations (PS 9 & PS 10), • Achieve a minimum structure to soil potential of -1.0 V with regard to a CU/CUSO4 reference cell at all points on the structures to be protected with a maximum of -1.5 V or as recommended by the coating material specification, • Where necessary provide isolation of pipeline at ends by means of mono- block isolating joints, The CP detail design shall consider: • Calculation of current requirement • Calculation of anode sizing, output, consumption and efficiency. • Calculation of circuit resistance, including Ground-bed to earth, structure to earth and cable resistances. • Drawings of ground beds and overall Cathodic protection stations layout. • Material specifications for all the items that shall be used. • Installation specifications. • Details of cable attachment to storage to the pipeline. • Details of measures to asses and mitigate Cathodic protection interaction both resulting from the new pipeline Cathodic protection system and the effect of other dc systems on the pipelines. • Interference from CP systems on adjacent pipelines. • Installation of adequate PSP measurement/monitoring test points along the ROW as the per NACE standards. K). Electrical and Instrumentation works Scope Supply electrical cables, lay, Terminate and Test cables for powering the station actuators wherever is needed. Supply Control Cables, Lay, Terminate and test control cables
L). First Aid Kits The EPC contractor shall provide a First Aid Kit at each Employer’s Representative office at each site. This shall be easily accessible and shall be replenished at maintained by the EPC contractor at all time. M). Accommodation for the Contractor’s Employees The EPC’s contractor’s site camp shall not be established within KPC’s premises.
Page 39 N). EPC Contractor’s Equipment The EPC Contractor shall provide, maintain and remove on completion of Works all temporary installations, equipment and devices necessary for the completion of the Works. O). Procurement of Materials The responsibility for so ordering and delivering materials so that they may be tested sufficiently far in advance of the Work so as not to delay it, shall rest upon the EPC Contractor, and he shall not be entitled to any time credit for delay occasioned by his neglect to order sufficiently well in advance or to payment of any costs he may incur as the result thereof. P) Sign Board The EPC Contractor shall provide, sign-write, erect and maintain until the expiry of the defects liability period sign boards of sound timber construction and hollow section steel uprights to the dimensions, sign-written and painted in durable colours, as directed by the Employer’s representative. Such sign boards shall be removed upon expiry of the defects liability period, and such removal shall be a prerequisite for the issuance of the defects liability certificate. The signboards shall each contain not more than 10 m2 of inscribed painted timber surfaces and have a total height above ground level of not more than 3.8 m. the steel uprights s hall be imbedded in class 20 concrete of sufficient volume to give the whole assembly adequate stability. Q) Provision of Facilities for Employer’s representative & staff The EPC Contractor shall provide the necessary tackle, access, equipment, devices, consumables and labour to enable the Employer’s representative conveniently carry out such inspections as they deem necessary at all times during the period of the Contract. R) Offices for Employers staff There are site offices existing in good condition which were used in another project at both PS1 and PS3 and PS7. KPC shall provide one of the offices to the contractor The EPC Contractor shall maintain for the duration of the contract a fully furnished and equipped offices i. Furniture for the Site Engineers’ Offices (These shall revert to the Employer at the end of the project) The EPC Contractor shall provide the list of furniture for the Site Engineer’s Offices at PS1 and PS3 for Employer’s Representative approval. ii. Equipment for the Site Engineer’s Office (These shall revert to the Employer at the end of the project) The EPC Contractor, when instructed, shall provide and install at the Site Engineer’s office the equipment. The list of Office Equipment is provisional. The equipment and software must come with a certificate dealer’s licence and manufacturer’s warranty. The EPC Contractor, when instructed, shall provide and install the equipment specified below: - a). Photocopy/ Printer / Scanner Machine 1 No. Minimum Speed 15-17 copies per minute Paper size A6 – A3 recommended monthly volume 6000 copies Type: Desktop Laser Type Paper feed – 250 sheets – Cassette – Stacks by pass b) Personal Computer (PC) 2 No. Processor Intel Core i7 i. RAM/ MEMORY 4GB (minimum)
Page 40 ii. 1 Hard Disk 500 GB (minimum) iii. 4. Monitor 17” TFT Colour SVGA with graphic card minimum 2GB iv. Keyboard 101 Keyboard v. Ports 4 USB ports (minimum) vi. 7. Operating system Windows 7 Professional or latest version vii. CD/DVD Writer viii. Network card ix. One-year warranty I Laptop 2 No.
i. Processor Intel Core i7 ii. RAM/ MEMORY 4GB (minimum) iii. Hard Disk 500 GB (minimum) iv. Monitor 14” TFT Colour SVGA with graphic card minimum 2GB v. Keyboard 101 Keyboard vi. Ports 4 USB ports (minimum) vii. Operating system Windows 7 Professional or latest version viii. CD/DVD Writer ix. Network card x. One-year warranty Digital Camera 2 No. i. 16 Mega Pixels ii. SD Card minimum 4GB iii. 10 x optical zoom iv. Lithium iron rechargeable battery v. Genuine leather carry case LCD Projector 1 No. i. 2500 lumens ii. 2200:1 contrast ratio iii. HD native resolution iv. Lamp life cycle 5,000 hours eco-mode v. 3D capable vi. Projection distance 1~12 metres vii. HD capable viii. Connectivity USB, VGA, S-Video, HDMI Office Stationary for entire duration of the project
KPC STAFF TRAINING AND DEVELOPMENT
Equipment Operation and Maintenance Training
This training shall be done locally and shall be offered to 30 No. KPC technical staff on site on the various equipment as per installation, operations and maintenance manuals. A proper scheduled program, with trainers and adequate training tools shall be availed by the EPC Contractor. FACTORY ACCEPTANCE TESTS The EPC Contractor shall facilitate Factory Acceptance Tests for the following:
Page 41 No. Description No. of Personnel No. of Days 1 Valves and Actuators 4 7 2 Line pipes 4 12 KPC shall meet all the incidental costs for the FAT.
DOCUMENTS TO BE ISSUED TO EPC CONTRCATOR The drawings to be issued to the EPC contractors are as follows.
1. Soil resistivity Data along the existing pipeline route. However, the contractor shall be expected to conduct their own survey during work execution 2. Elevation Profile for the pipeline route for the old pipeline 3. Any other document as may be requested by the EPC contractor if available
Page 42 STANDARD FORMS
LETTER OF ACCEPTANCE
[date]
To: [name of the EPC Contractor]
[address of the EPC Contractor]
Dear Sir,
This is to notify you that your Tender dated for the execution of [name of the Contract and identification number, as given in the Tender documents] for the Contract Price of USD. [Amount in figures] [USD [amount in words] in accordance with the Instructions to Tenderers is hereby accepted.
You are hereby instructed to proceed with the execution of the said Works in accordance with the Contract documents.
Authorized Signature ……………………………………………………………………
Name and Title of Signatory ……………………………………………………………
Attachment: Agreement
Page 43 FORM OF AGREEMENT
THIS AGREEMENT, made the ______day of ______20 ______between Kenya Pipeline Company Ltd_ of[ ] ______(hereinafter called Employer) of the one part AND ______of Whose registered Office is Kenpipe Plaza] ______(hereinafter called “the EPC Contractor”) of the other part. WHEREAS KPC is desirous that the EPC Contractor executes EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38- 43(SAMBURU AREA ) & 390-400(KONZA AREA) (hereinafter called “the Works”) located in Samburu and Konza (KPC has accepted the tender submitted by the EPC Contractor for the execution and completion of such Works and the remedying of any defects therein for the Contract Price of USD ______[Amount in figures], USD ______[Amount in words].
NOW THIS AGREEMENT WITNESSETH as follows: 1. In this Agreement, words and expressions shall have the same meanings as are respectively assigned to them in the Conditions of Contract hereinafter referred to.
2. The following documents shall be deemed to form and shall be read and construed as part of this Agreement in the following order: -
(i) Contract Agreement (ii) Form of Tender (iii) Appendix to the form of tender (iv) Particular Conditions of Contract Part II (v) General Conditions of Contract Part I (vi) Specifications (vii) Priced Lump Sum bill of quantities (viii) Technical proposal (ix) Programme of works (x) Drawings 3. In consideration of the payments to be made by The Employer to the EPC Contractor as hereinafter mentioned, the EPC Contractor hereby covenants with The Employer to execute and complete the Works and remedy any defects therein in conformity in all respects with the provisions of the Contract.
4. The Employer hereby covenants to pay the EPC Contractor in consideration of the execution and completion of the Works and the remedying of defects therein, the Contract Price or such other sum as may become payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.
Page 44
IN WITNESS whereof the parties thereto have caused this Agreement to be executed the day and year first before written.
The common Seal of ______
Was hereunto affixed in the presence of ______
Signed Sealed, and Delivered by the said ______
Binding Signature of The Employer ______
Binding Signature of EPC Contractor ______
In the presence of A Name ______
Address ______
Signature ______
(ii) Name ______
Address ______
Signature ______
Page 45 FORM OF TENDER SECURITY
WHEREAS ……………………………………….. (hereinafter called “the Tenderer”) has submitted his tender dated ………………………… for the EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMETERE MARKER NO. 38-43(SAMBURU AREA ) & 390- 400(KONZA AREA KNOW ALL PEOPLE by these presents that WE ……………………… having our registered office at ………………(hereinafter called “the Bank”), are bound unto ……………………………(hereinafter called KPC) in the sum of USD.……………………… for which payment well and truly to be made to the said KPC, the Bank binds itself, its successors and assigns by these presents sealed with the Common Seal of the said Bank this ……………. Day of ………20…………
THE CONDITIONS of this obligation are:
1. If after tender opening the tenderer withdraws his tender during the period of tender validity specified in the instructions to tenderers Or 2. If the tenderer, having been notified of the acceptance of his tender by KPC during the period of tender validity: (a) fails or refuses to execute the form of Agreement in accordance with the Instructions to Tenderers, if required; or (b) fails or refuses to furnish the Performance Security, in accordance with the Instructions to Tenderers;
We undertake to pay to KPC up to the above amount upon receipt of his first written demand, without KPC having to substantiate his demand, provided that in his demand KPC will note that the amount claimed by him is due to him, owing to the occurrence of one or both of the two conditions, specifying the occurred condition or conditions. This guarantee will remain in force up to and including thirty (30) days after the period of tender validity, and any demand in respect thereof should reach the Bank not later than the said date.
______[date[ [signature of the Bank]
______[witness] [seal]
Page 46 PERFORMANCE BANK GUARANTEE (Date)
To: Kenya Pipeline Co. Limited P.O. Box 73442-00200, Nairobi
Dear Sir, WHEREAS ______(hereinafter called “the EPC Contractor”) has undertaken, in pursuance of Contract No. XXXX dated ______to execute EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38- 43(SAMBURU AREA ) & 390-400(KONZA AREA (hereinafter called “the Works”);
AND WHEREAS it has been stipulated by you in the said Contract that the EPC Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his obligations in accordance with the Contract; AND WHEREAS we have agreed to give the EPC Contractor such a Bank Guarantee: NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the EPC Contractor, up to a total of USD. ______(amount of Guarantee in figures) US Dollars______(amount of Guarantee in words), and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of US Dollars ______(amount of Guarantee in words) as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debt from the EPC Contractor before presenting us with the demand. We further agree that no change, addition or other modification of the terms of the Contract or of the Works to be performed there under or of any of the Contract documents which may be made between you and the EPC Contractor shall in any way release us from any liability under this Guarantee, and we hereby waive notice of any change, addition, or modification.
This guarantee shall be valid until the date of issue of the Certificate of Completion.
Page 47 TENDER QUESTIONNAIRE
Please fill in block letters
Full names of tenderer
……………………………………………………………………..
Full address of tenderer to which tender correspondence is to be sent (unless an agent has been appointed below)
……………………………………………………………………..
Telephone number (s) of tenderer
……………………………………………………………………..
Telex address of tenderer
……………………………………………………………………..
Name of tenderers’ representative to be contracted on matters of the tender during the tender period
……………………………………………………………………..
Details of tenderer’s nominated agent (if any) to receive tender notices. This is essential if the tenderer does not have his registered address in Kenya (name, address, telephone, telex)
……………………………………………………………………..
Signature of Tenderer
Page 48 CONFIDENTIAL BUSINESS QUESTIONNAIRE
You are requested to give the particulars indicated in Part 1 and either Part 2 (a), 2 (b) or whichever applies to your type of business.
You are advised that it is a serious offence to give false information on this Form.
Part 1 – General
Business Name …………………………………………………………………………….
Location of business premises: Country/Town………………………………………
Plot No ……………………………. Street/Road ………………………………..………
Postal Address …………………. Tel No ………………………………………..……….
Nature of Business ……………………………………………………………...…………
Current Trade Licensee No …………………….. Expiring date …………………….
Maximum value of business which you can handle at any time: USD ……………………………………………………………………………………………
Name of your bankers …………………………………………………………………….
Branch …………………………………………………………………..……………………
Part 2 (a) – Sole Proprietor
Your name in full ……………………………….. Age …………………………………
Nationality ………………………………………… Country of Origin………………
Citizenship details …………………………………………………………………………
Part 2 (b) – Partnership
Give details of partners as follows:
Name in full Nationality Citizenship Details Shares 1 ………………………………………………………………………………………..... 2 …………………………………………………………………………………………. 3 ……………………………………………………………………………………...…..
Part 2I - Registered Company:
Private or public ……………………………………………………………………………
Page 49
Issued USD ………………………………………………………………………………….
Give details of all directors as follows
Name in full Nationality Citizenship Details Shares 1 …………………………………………………………………………………………. 2 …………………………………………………………………………………………. 3 ………………………………………………………………………………………….
Part 2 (d) Interest in the Firm:
Is there any person/persons in ………………………………… [name of KPC] who has interest in this firm? Yes/No. ……………………… [delete as necessary]
I certify that the information given above is correct
………………………….. …………………………. …………………………. [Title] [Signature] [Date]
* Attach proof of citizenship
Page 50 4.8.7 SCHEDULE OF PLANT AND EQUIPMENT OWNERSHIP
Particulars Type/ Serial Year of Where Value Owned To Hire; Availability Of Each Rating No. & Manufacturer made Give for the Unit Reg. name of works No. owner and address
Note*
*Details of each machine/equipment in more than one of the same make or type must be given separately. Details of proposed hire or hire purchase to be submitted giving names and address of hiring/selling party and serial number/engines number
*Before the award of Contract, the Employer’s representative or his representative may carry out physical verification of the availability of the plant and equipment listed on the schedule.
Page 51 4.8.8 JOINT VENTURE SUMMARY
Names of all partners of a joint venture
Lead partner
Partner
Partner
Partner
Partner
Partner
Total value of annual construction turnover, in terms of work billed to clients
Annual turnover data (Construction only USD.)
Partner Year 1 Year 2 Year 3 Year 4 Year 5 1. Lead Partner 2. Partner 3. Partner 4. Partner 5. Partner 6. Partner
TOTALS
Page 52 DETAILS OF CONTRACTS OF SIMILAR NATURE
Name of Firm or partner of a joint venture
Use a separate sheet of each contract
1. Contract reference Number
2. Name of Contract
3. Name of Employer
4. Employer contacts email, telephone, fax, etc
5. Narrative description of the project and type
6. Description of actual works/services provided by the firm 7. Role in the Contract (check one) * Sole contractor * Management contractor * Subcontractor * Point venture Partner *Other …………….Specify 8. 9. Value of contract in USD
10. Contractual/signed duration
11. Actual duration
Note: Each project listed to be accompanied by reference from the Client
Page 53 SCHEDULE OF ONGOING CONTRACTS
Name of Firm or Partner of a joint venture
Firms and each partner to an application should provide information on their current commitments on all contracts that have been awarded, or for which a letter of intent or acceptance has been received, or for contracts approaching completion, but for which an unqualified, full completion certificate has yet to be issued.
Name of contract Value of outstanding Estimated completion work (USD.) date 1.
2.
3.
4.
5.
6.
Page 54 PROPOSED KEY STAFF FOR THE PROJECT
Name of Firm
For specific positions essential to contract implementation, Firms should provide the names of at least two candidates qualified to meet the specified requirements stated for each position. The data on their experience should be supplied in separate sheets.
1. Name Proposed Position 2. 3. 4. 5. 6. 7 8 9
Page 55 FORMAT OF CURRICULUM VITAE (CV) FOR PROPOSED PROFESSIONAL STAFF
Proposed Position: ______
Name of Firm: ______
Name of Staff: ______
Profession: ______
Date of Birth: ______
Years with Firm: ______Nationality: ______
Membership in Professional Societies: ______
Registration with licensing bodies to practice:
Detailed Tasks Assigned: ______
Key Qualifications:
[Give an outline of staff member’s experience and training most pertinent to tasks on assignment. Describe degree of responsibility held by staff member on relevant previous assignments and give dates and locations].
Education:
[Summarize: college/university and other specialized education of staff member, giving names of schools, dates attended and degree[s] obtained.]
From (Month To (Month GENERAL EDUCATION and Year) and Year)
Page 56 State College or University Course of Study and qualification achieved
From (Month To (Month SPECIALIZED EDUCATION and Year) and Year) State School, College or Course of Study and University qualification achieved
Employment Record:
[Starting with present position, list in reverse order every employment held. List all positions held by staff member since graduation, giving dates, names of employing organizations, titles of positions held, and locations of assignments.]
Certification:
I, the undersigned, certify that these data correctly describe me, my qualifications, and my experience. ______Date: ______[Signature of staff member] ______Date: ______[Signature of authorised representative of the firm]
Full name of staff member: ______
Full name of authorized representative: ______
Page 57 LITIGATION HISTORY
Name of Firm or Partner of a joint venture
Firms, including each of the partners of a joint venture, should provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution. A separate sheet should be used for each partner of a joint venture
Year Award FOR or Name of client, Disputed amount AGAINST Firm cause of litigation (current value, and matter in USD.) dispute
Page 58 CERTIFICATE OF TENDERER’S VISIT TO SITE
This is to certify that
[Name/s] ………………………………………………………………………………………………….
………………………………………………………………………………………………….
Being the authorized representative/Agent of [Name of Tenderer]
………………………………………………………………………………………………….
………………………………………………………………………………………………….
Participated in the inspection visit of the site of the works for the project
EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38- 43(SAMBURU AREA ) & 390-400(KONZA AREA …………………………………. Day of ……………………. 20 …………
Name: ……………………………………………………………..
Signed …………………………………………………………………...…………………… [KPC’s Representative
………………………………………………………………………………......
KPC stamp ……………………………………….
Page 59 KEY PERSONNEL
DESIGNATION NAME NATIONALITY SUMMARY OF QUALIFICATIONS AND EXPERIENCE Headquarters 1.Directors 2. 3. 4. 5. etc
Site Office: 1. Project Manager 2. 3. 4. 5. etc
I certify that the above information is correct ………………………………………………………………………………………..... [Title] [Signature] [Date]
Page 60 FORM OF WRITTEN POWER-OF-ATTORNEY
The Tenderer consists of a joint venture shall state here below the name and address of his representative who is authorized to receive on his behalf correspondence in connection with the Tender.
………………………………………………………………………………………...... [Name of Tenderer’s Representative in block letters]
………………………………………………………………………………………...... [Address of Tenderer’s Representative]
………………………………………………………………………………………...... [Signature of Tenderer’s Representative]
Page 61 DECLARATION FORM
Date ______To:
The tenderer i.e. (name and address) declare the following: a) Has not been debarred from participating in public procurement. b) Has not been involved in and will not be involved in corrupt and fraudulent practices regarding public procurement.
…………………………………………………………………………………………….. Title Signature Date
(To be signed by authorized representative and officially stamped)
Page 62 SECTION V – FINANCIAL PROPOSAL
FORM OF TENDER ______[Date] TO: Kenya Pipeline Co. Limited
EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38- 43(SAMBURU AREA) & 390-400(KONZA AREA
Dear Sir,
1. In accordance with the Conditions of Contract, Specifications, Drawings and Bills of Quantities for the execution of the above named Works, we, the undersigned offer to construct, install and complete such Works and remedy any defects therein for the sum of USD [Amount in figures] US Dollars [Amount in words]
We undertake, if our tender is accepted, to commence the Works as soon as is reasonably possible after the receipt of the Employer’s representative’s notice to commence, and to complete the whole of the Works comprised in the Contract within the time stated in the Appendix to Conditions of Contract.
3. We agree to abide by this tender until [inset date], and it shall remain binding upon us and may be accepted at any time before the date.
Unless and until a formal Agreement is prepared and executed this tender together with your written acceptance thereof, shall not constitute a binding Contract between us.
We understand that you are not bound to accept the lowest or any tender you may receive.
Dated this day of 20
Signature in the capacity of
Duly authorized to sign tenders for and on behalf of
Witness; Name
Address
Signature
Date
Page 63 APPENDIX TO CONDITIONS OF CONTRACT
(This appendix forms part of the tender) CONDITIONS OF CONTRACT CLAUSE AMOUNT Tender Security (Bank Guarantee only) - USD 1,000.00 Amount of Performance Security 4.2 10 percent of Tender sum in the form of (Unconditional Bank Guarantee) Unconditional bank Guarantee Program to be submitted 8.3 Not later than 14 days after issuance of Order to Commence Insurance against injury to persons and damage 18.3 USD 150,000.00 to property Period for commencement, from the Employer’s 8.1 14 days representative’s order to commence Time for completion 8.2 …………… months Delay damages 8.7 0.1% of the contract sum per day
Limit of delay damages 8.7 10 % contract price Completion of outstanding works and 11.1 12 Months remedying defects Payment of Retention money 14.9 10 percent of interim Payment Certificate Limit of Payment of Retention money 14.9 10 percent of Contract Price Application for interim payments 14.3 USD 500,000 Interim payments 14.6 28 days Application for final payment 14.11 42 days Delayed payment 14.8 0.5 percent per month Governing laws - Laws of the Republic of Kenya Resolution of disputes - High Court of Kenya Law and Language 1.4 English Language for communication 1.4 English Right of access to the site 2.1 Not earlier than the commencement date Employer’s name and address - Managing Director Kenya Pipeline Company Limited P.O. Box 73442-00200 NAIROBI Engineer’s name and address - Maintenance Manager Kenya Pipeline Company Limited P.O. Box 73442-00200 NAIROBI Engineer’s representative name and address - To be appointed by the Engineer in writing Working hours 6.5 Monday to Friday; 0800-1300hrs and 1400-1700hrs Saturday, 0800-1300hrs
Page 64 Provisional sums 13.5(b)(ii) Ten percent
Adjustments for changes in costs 13.8 Adjustments to the Contract price shall not apply in this tender Advanced payment 14.2 No advanced payment in this tender
Application for interim payments 14.3 (c) Ten Percent of the accepted contract amount Interim payments 14.6 Kshs. 2million
Currency of payments 14.15 As named in the instruction to bidders
Limitation of liability 17.6 The accepted contract amount
General requirements for insurance 18.1 (a) evidence of insurance – 14 days (b) relevant policies – 28 days Insurance for works and contractor’s equipment 18.2 (d) Not applicable
Appointment of the Dispute Adjudication Board 20.2 28 days after commencement date (DAB) Failure to agree DAB 20.3 The Chairman, The Chartered Institute and Arbitrators, Kenya Branch
NAME OF SIGNATORY
…………………………………………………………………………………………………
TITLE OF SIGNATORY …………………………………………………………………….
SIGNATURE…………………………………………………
Page 65 FINANCIAL CAPABILITY
Name of Firm or partner of a joint venture
Firms, including each partner of a joint venture, should provide financial information to demonstrate that they meet the requirements stated in the Instructions to Bidders. Each firm or partner of a joint venture must fill in this form. If necessary, use separate sheets to provide complete banker information. A copy of the audited balance sheets should be attached. Name Address of banker Banker Telephone Contact name and title
Fax email
Summarize actual assets and liabilities in US Dollars or Kenya Shillings for the previous five years. Based upon known commitments, summarize projected assets and liabilities in US Dollars or Kenya Shillings for the next two years, unless the with holding of such information is justified by the Firm to the satisfaction of KPC. Financial Actual: Projected: Information previous five years: next two months in USD:
1. 2. 3. 4. 5. 6
1. Total assets
2. Current assets
3. Total liabilities
4. Current liabilities
5. Profits before taxes
6. Profits after taxes
Page 66 Specify proposed sources of financing to meet the cash flow demands of the Project, net of current commitments
Source of financing Amount (USD).
1.
2.
3.
4.
Attached audited financial statements for the last five years (for the individual Firm or each partner of a joint venture).
Firms owned by individuals, and partnerships, may submit their balance sheets certified by a registered accountant, and supported by copies of tax returns, if audits are not required by the laws of their countries of origin.
Page 67 5.4 BILLS OF QUANTITIES
5.4.1 Schedule of Prices
Notes on Pricing
1. The EPC Contractor shall quote for all items of the Works executed on an EPC basis and the prices shall be quoted for the complete scope of Work as described or implied in this tender document. 2. The Schedule of Prices has been prepared on the basis of Lump Sum items or otherwise stated. The prices given shall be verified by the EPC Contractor as being totally inclusive of all activities required to complete the Works in accordance with the Contract and to the approval of KPC. 3. The EPC Contractor shall provide a detailed breakup of his Lump sum costs as part of tender in a manner that the overall picture for the quoted price can be understood and form the basis of valuation of the works during construction. 4. The EPC Contractor shall complete a Schedule of Prices and the Total Price shall include everything to be supplied, delivered and installed by the EPC Contractor. 5. The EPC Contractor shall submit prices for the supply and delivery to Site of all listed materials. 6. Where a bidder fails to quote a price of any item of the Schedule of Prices, KPC will consider that the price of that item is included among other items and the EPC Contractor will be obligated to furnish that item at no extra cost to KPC, if awarded the Contract. 7. The bidder shall be deemed to have obtained all information as to port clearance facilities and charges, loading and unloading facilities and charges, storage facilities and charges, transportation facilities and charges, congestion and/or other conditions to be expected at Mombasa Port or any other entry port and all requirements related thereto. 8. The EPC Contractor shall be responsible to make complete arrangements for the transportation of materials and equipment to the Site. The bidder shall be deemed to have included all clearing, forwarding and other incidental costs in this regard in his bid. 9. The EPC Contractor shall pay all taxes, duties and levies imposed by law which become payable as a result of the EPC Contractor’s performance under this contract. 10. Where required potential bidders should price each element separately for purpose of determining price per item. Failure may lead to the bid being determined as being Non-responsive to the bid requirement.
Terms of Payment The following payment terms shall apply:- 1. Advance Payment: There shall be no advance payments.
Page 68 2. All payments shall be subject to the deduction of 10% retention in accordance with the Contract.
3. Preliminary and General Works
a. The EPC contractor to provide a detailed breakdown of the P&G items on the supply and maintenance portions. 4. Design Engineering and Other Services b. To pay 100% on completion of the task, save the 10% retention. 5. Procurement & Supply of Equipment & Raw Materials a. Imported Equipment requiring Factory Acceptance Tests i. 10% upon placement of order with sub vendor (Documentary evidence shall be required) ii. 30% after complete and successful Factory Acceptance Tests and submission of pre-shipment inspection documents. iii. 50% upon arrival of the equipment/materials at Site. iv. 10% on commissioning of the project and handover b. Imported Equipment NOT requiring Factory Acceptance Tests v. 10% upon placement of order with sub vendor (Documentary evidence shall be required) vi. 30% after submission of pre-shipment inspection documents. vii. 50% upon arrival of the equipment/materials at Site. viii. 10% on commissioning of the project and handover c. Locally supplied materials/ equipment ix. 90% upon arrival of the equipment/materials at Site. x. 10% on commissioning of the project and handover. 6. Construction a. For Construction, payments shall be made against the EPC Contractor actual progress as certified by the Employer’s representative. The EPC contractor is expected to provide a detail of activities covering the entire scope. Training and Development b. To pay 100% on completion of the task.
Page 69 5.4.2 Bills of Quantities A. PRELIMINARY AND GENERAL WORKS Item Description Unit Qty Rate Cost USD No. USD A1 Allow for compliance with the Conditions of Item LS Contract and EPC Contractor’s General Obligations. A2 Allow for the provision of all insurances, Item LS guarantees, licences, etc as required under the Contract(list each element and price separately-failure shall lead to disqualification) A3 Allow for provision and maintenance of Site Item LS Engineer’s office and equipment for the entire period of the construction works A4 Allow for the provision and maintenance of Item LS contractors’ camps for the full duration of the contract A5 Mobilization – Allow for Mobilization of Item LS plant , personnel and equipment . A6 Demobilization – Allow for the Item LS demobilization of plant and equipment from site. A7 Allow for site clearance and Item LS reinstatement A8 Allow for decommissioning or Item LS abandoning of the Old Pipeline (see clause 4.3.2 of scope of work) A9 Allow for locating the existing services Item LS with an aim to relocate or protect. SUB- TOTAL A
Page 70 B DESIGN ENGINEERING AND OTHER SERVICES
Ite Description Unit Qty Cos Rate m t USD No. USD B1 Allow for carrying out an Environmental and Social Item LS Impact Assessment (ESIA) of the pipeline route as prescribed in EMCA. B2 Allow for preparation of Engineering Designs and Documentation for Pipeline from KM38-43 & 390-400. The documents will be reviewed by KPC engineers. B2.1 Preliminary Engineering designs and Item LS
Documentations B2.2 Detailed Engineering Designs and Documentations Item LS (Working drawings, As-built drawings, etc).( list
each element and price separately-failure shall lead to disqualification) B3 Allow for liaison with relevant Authorities and all Item LS works necessary for the project (KenHA, County government, etc.) ( list each element and price separately-failure shall lead to disqualification) B4 Allow for the preparation of detailed operating Item LS procedures and maintenance manuals, for all equipment and plant supplied under the Contract. ( list manuals for each equipment and price separately-failure shall lead to disqualification) B5 Lump sum for any other item not detailed in the bill Item LS and considered by the EPC Contractor not to have been included above (LIST EACH ELEMENT AND PRICE SEPARATELY) SUB TOTAL B
Page 71 C SUPPLY OF MATERIALS Ite Description Unit Qty Cos Rate m t USD No. USD C1 Supply of Pipelines , Block Valves and other materials C1.1 Allow for the supply of Factory Coated with 3 LPE Item LS cross country pipe as per API 5L specification, latest edition; All criteria set in the specification MUST be met. The pipe at a minimum shall be Grade X52. The pipe lengths shall be sufficient to cover the entire 15km plus 10% excess length. (The contractor shall specify the thickness of the pipe in his tender. The pipe thickness shall have sufficient corrosion allowance to last 25 years) ( list each element and price separately-failure shall lead to disqualification) C1.2 Allow for the supply of mainline block and check Item LS valves to defined class material pressure Temperature rating ((list each element and price separately-failure shall lead to disqualification)) C1.3 Allow for the supply of all the necessary hot bends Item LS required for the pipeline segments and sufficient quantities for the Aerial Markers ( list each element and price separately-failure shall lead to disqualification) C2 Allow for supply of all necessary materials for Item LS corrosion control works (heat shrinkable Tapes, Materials for Temporary& Permanent CP, Coating Materials for Holidays repairs, etc) (list each element and price separately-failure shall lead to disqualification) C3 Allow for supply of all necessary materials for civil Item LS works(soft backfill material, etc) ( list each element and price separately-failure shall lead to disqualification) C4 Allow for supply of necessary materials for pipelines Item LS crossings of roads, insulating support centralizer and sealing materials, rivers crossing, railway crossing and any other necessary crossings/service in the project. ( list each element and price separately-failure shall lead to disqualification) C5 Allow for supply of necessary materials for Item LS hydraulic protection of the works( list each element and price separately-failure shall lead to disqualification)
Page 72 C6 Allow for any other item not detailed in the bill and Item LS considered by the EPC Contractor not to have been included above for the completion of the works (List each element and price separately) C7 Allow for supply of portable temporary product storage tanks (see clause 4.3.2 (viii))
SUB TOTAL C
D CONSTRUCTION
Item Description Unit Qty Rate Cost USD No. USD D1 Allow for the installation of 3LPE mainline Item LS pipes and fittings, hot bends, required for the works including necessary valves, NDT testing, welded joint coating, Markers Posts installation, hydro test and line commissioning ( list each element and price separately- failure shall lead to disqualification) D2 Allow for installation, test and commissioning Item LS of all necessary corrosion control works list each element and price separately-failure shall lead to disqualification) D3 Allow for construction of all necessary civil Item LS works list each element and price separately- failure shall lead to disqualification) D4 Allow for pipelines crossings on rivers through Item LS open cut (list each element and price separately-failure shall lead to disqualification) D5 Allow for pipelines crossings on rivers, Roads, Item LS rails through HDD/Auger-Bore/Micro- tunnelling method (list each element and price separately-failure shall lead to disqualification) D6 Allow for the trenching and backfilling works Item LS for the purposes of laying the trunk line/Mainline pipe for the entire length list each element and price separately-failure shall lead to disqualification) D7 Allow for hydraulic protection and land Item LS restoration list each element and price separately-failure shall lead to disqualification) D8 Allow for carrying out hydrotest on the newly Item LS laid lines.
Page 73 Item Description Unit Qty Rate Cost USD No. USD D9 Allow for any other item not detailed in the Item LS bill and considered by the EPC Contractor not to have been included above (List each element and price separately) SUB TOTAL D
E FACTORY ACCEPTANCE TESTS Item Description Unit Qty Rate No. Per Cost USD USD head E1 Factory Acceptance Test for line-pipes 4 No. No. LS KPC staff for 7 days SUB TOTAL F Note: THE COST FOR FACTORY ACCEPTANCE TESTS
F PRODUCT HANDLING AND TRANSPORT Item Description Unit Qty No. Per Rate Cost head F1 Allow for temporary storage of product at LS LS point of drain at KM390-400 F2 Allow for temporary storage of product at LS LS point of drain at KM38-43 F3 Allow for transporting of product from M3 1,500 KM38-43 to KPC Mombasa Depots F4 Allow for transporting of product from M3 1,000 KM390-400 to KPC Nairobi terminal SUB TOTAL F
Below are explanatory notes responsibilities with regards to the Factory Acceptance Testing.
1. Responsibility of the Bidder
The bidder shall make arrangements with the equipment manufacturer, to allow for factory testing of the valves and line pipes before they are shipped to Kenya.
Page 74 The bidder shall inform KPC when the the valves and line pipes are ready for testing at the manufacturer’s premises and at the same time liaise with the manufacturer to issue invitation letters to the KPC representatives. The bidder may include any other costs that are related to factory acceptance testing of the fire tender but are not included under KPC responsibility.
2. Responsibility of KPC KPC shall be responsible for all the logistical arrangements for the following: - • Air travel to and from the country and city / town where the fire tender will be tested, • Accommodation during the period of Factory Acceptance and Testing • Meals • Procurement of visa, where applicable The bidder shall not quote for the services under (2) above. Out-of-pocket allowance for the employer’s representative attending the Factory Acceptance and Testing shall be the responsibility of the employer in line with the employer’s travel policy.
SHEDULE OF PRICES – SUMMARY
ITEM DESCRIPTION COST (USD) PART ‘A’ – Preliminary and General Works PART ‘B’ – Design Engineering and Other Services PART ‘C’ – Supply of Materials PART ‘D’ – Construction PART ‘E’ - Factory Acceptance Tests PART ‘F’ – Product Handling and Transport 1 TOTAL FOR ITEM ‘A-E’ 2 ALLOW FOR 10% OF 1 3 TOTAL (1+2) 4 16% VAT OF 3 5 TOTAL (3+4)(TO BE CARRIED TO FORM OF TENDER)
Page 75 5.5 SCHEDULE OF RATES
i. The EPC Contractor shall be required to generate a schedule of rates for materials, manpower and construction plant in the formats given below. ii. The Schedule of rates shall be included in the Financial Bid as an appendix. iii. Except where otherwise described, the rates provided shall be fully inclusive of the supply to site of all required imported or local materials, labour, plant, equipment and consumables. Such rates shall have no further or other than application under the Contract than to be used for the purpose of valuing variations including additions to, and deletions from the Contract Price. iv. The costs of such materials delivered to Site should be inclusive of freight, insurance and handling expenses (where applicable) and shall cover all overhead charges and profit. v. The rates for manpower shall be inclusive of all costs incurred in connection with the employment of site personnel including, but not limited to: administration, medical services, meals and accommodation, payment of salaries and wages and the deduction of applicable taxes there from. vi. The EPC Contractor shall list all the construction plant he proposes to use for the purposes of this Contract together with their hourly rates. Such hourly rates shall be deemed to cover all costs necessary for the Contractor to provide and maintain items of Construction Plant in sound operating condition at the place where they are to be used with all necessary appurtenances for efficient operation, including supervision, costs of wages, salaries etc of operators and indirect labour, overheads, profit, consumables, fuel, oil and greases, etc.
Page 76 Materials Item Description Unit Rate (USD) 1. 2.
Manpower Item Staff/ Manpower Rate USD/Hr 1. 2.
Construction Plant Item Construction Plant Nomination Working Standing USD/Hr USD/Hr 1. 2.
Page 77 5.6 BIDDING FORMS
LETTER OF NOTIFICATION OF AWARD
Address of KPC ______
To: ______
RE: Tender No.
Tender Name
This is to notify that the contract/s stated below under the above mentioned tender have been awarded to you.
Please acknowledge receipt of this letter of notification signifying your acceptance.
The contract/contracts shall be signed by the parties within 30 days of the date of this letter but not earlier than 14 days from the date of the letter.
You may contact the officer(s) whose particulars appear below on the subject matter of this letter of notification of award.
(FULL PARTICULARS)
SIGNED FOR ACCOUNTING OFFICER
Page 78 FORM OF TENDER
TO: The Managing Director,
Kenya Pipeline Company,
P.O.Box 73442-00200,
Nairobi ______[Date]
Name of Contract: Construction of Kisumu Oil Jetty
Dear Sir,
1. In accordance with the Conditions of Contract, Specifications, Drawings and Bill of Quantities for the execution of the above named Works, we, the undersigned offer to construct, install and complete such Works and remedy any defects therein for the sum of Kshs.______[Amount in figures]Kenya Shillings______[Amount in words]
2. We undertake, if our tender is accepted, to commence the Works within twenty-eight (28) days after the receipt of the Engineer’s Order to commence, and to complete the whole of the Works comprised in the Contract within the time stated in the Appendix to Conditions of Contract.
3. We agree to abide by this tender until ______[Insert date], and it shall remain binding upon us and may be accepted at any time before that date.
4. Unless and until a formal Agreement is prepared and executed this tender together with your written acceptance thereof, shall constitute a binding Contract between us.
5. We understand that you are not bound to accept the lowest or any tender you may receive.
Dated this ______day of ______20______
Signature ______in the capacity of______
Page 79 duly authorized to sign tenders for and on behalf of ______[Name of Tenderer ]
of______[Address of Tenderer]
Witness; Name______
Address______
Signature______
Date______
Page 80 Page 81 FORM OF TENDER SECURITY WHEREAS……………………………………….. (hereinafter called “the Tenderer”) has submitted his tender dated………………………………the (INSERT TENDER DESCRIPTION AND NUMBER)
KNOW All PEOPLE by these presents that WE ………………………………………………………… having our registered office at …………………………………(hereinafter called “the Bank”), are bound unto Kenya Pipeline Company Limited (hereinafter called “the Employer”) in the sum of Kshss.…………………………… for which payment well and truly to be made to the said Employer, the Bank binds itself, its successors and assigns by these presents sealed with the Common Seal of the said Bank this ……………. Day of ………20…………
THE CONDITIONS of this obligation are:
1. If after tender opening the tenderer withdraws his tender during the period of tender validity specified in the instructions to tenderers Or
2. If the tenderer, having been notified of the acceptance of his tender by the Employer during the period of tender validity: (a) fails or refuses to execute the form of Agreement in accordance with the Instructions to Tenderers, if required; or (b) fails or refuses to furnish the Performance Security, in accordance with the Instructions to Tenderers; (c) rejects a correction of an arithmetic error in the tender. We undertake to pay to the Employer up to the above amount upon receipt of his first written demand, without the Employer having to substantiate his demand, provided that in his demand the Employer will note that the amount claimed by him is due to him, owing to the occurrence of one or both of the two conditions, specifying the occurred condition or conditions.
This guarantee will remain in force up to and including thirty (30) days after the period of tender validity, and any demand in respect thereof should reach the Bank not later than the said date.
______
[Date] [Signature of the Bank]
______
[Witness] [Seal
(Amend accordingly if provided by Insurance Company)
Page 82 TENDER QUESTIONNAIRE
Please fill in block letters.
1. Full names of tenderer
………………………………………………………………………………………
2. Full address of tenderer to which tender correspondence is to be sent (unless an agent has been appointed below)
………………………………………………………………………………………
3. Telephone number (s) of tenderer
………………………………………………………………………………………
4. E-mail address and Fax of tenderer
………………………………………………………………………………………
5. Name of tenderer’s representative to be contacted on matters of the tender during the tender period
………………………………………………………………………………………
6. Details of tenderer’s nominated agent (if any) to receive tender notices. This is essential if the tenderer does not have his registered address in Kenya (name, address, telephone, telex)
………………………………………………………………………………………
______
Signature of Tenderer
Page 83
CONFIDENTIAL BUSINESS QUESTIONNAIRE
You are required to give the particulars indicated in Part 1 and either Part 2 (a), 2 (b) or 2 (c) and 2 (d) whichever applies to your type of business.
You are advised that it is a serious offence to give false information on this Form.
Part 1 – General
Business Name ………………………………………………………………………
Location of business premises; Country/Town……………………….
Plot No……………………………………… Street/Road …………………………
Postal Address……………………………… Tel No………………………………..
Nature of Business…………………………………………………………………..
Current Trade Licence No…………………… Expiring date…………………
Maximum value of business which you can handle at any time: Kenya Shillings………………………..
Name of your bankers………………………………………………………………
Branch…………………………………………………………………………………
Part 2 (a) – Sole Proprietor
Your name in full…………………………………… Age…………………………
Page 84
Nationality………………………………… Country of Origin…………………
*Citizenship details …………………………………………………………………
Part 2 (b) – Partnership
Give details of partners as follows:
Name in full Nationality Citizenship Details Shares
1……………………………………………………………………………………
2……………………………………………………………………………………
3……………………………………………………………………………………
Part 2(c) – Registered Company:
Private or public……………………………………………………………
State the nominal and issued capital of the Company-
Nominal Kshs…………………………………………………………………
Issued Kshs……………………………………………………………………
Give details of all directors as follows:
Name in full . Nationality. Citizenship Details*. Shares.
Page 85 1.
………………………………………………………………………………………
2.
………………………………………………………………………………………
3.
………………………………………………………………………………………
4.
………………………………………………………………………………………
Part 2(d) – Interest in the Firm:
Is there any person / persons in …………… ………(Name of Employer) who has interest in this firm? Yes/No………………………(Delete as necessary)
I certify that the information given above is correct.
……………………… ……………………… …………………
(Title) (Signature) (Date)
* Attach proof of citizenship
Page 86 CERTIFICATE OF TENDERER’S VISIT TO SITE
This is to certify that
[Name/s]……………………………………………………………………
…………………………………………………………………………………
Being the authorized representative/Agent of [Name of Tenderer] ……………………………………………………………………………………
…………………………………………………………………………………… participated in the organized inspection visit of the site of the works for the (Name of Contract: ……………………………………………………………)
……………………………………… day of………………………20……………
Signed……………………………………………………………………………… (Employer’s Representative)
………………………………………………………………………………………
Page 87 FORM OF WRITTEN POWER-OF-ATTORNEY
The Tenderer consisting of a joint venture shall state here below the name and address of his representative who is authorised to receive on his behalf correspondence in connection with the Tender.
……………………………………………………………… (Name of Tenderer’s Representative in block letters)
……………………………………………………………… (Address of Tenderer’s Representative)
……………………………………………………………… (Signature of Tenderer’s Representative)
Page 88 OTHER SUPPLEMENTARY INFORMATION & LITIGATION STATUS
1. Financial reports for the last five years, balance sheets, profit and loss statements, auditors’ reports etc. List them below and attach copies. ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………
2. Evidence of access to financial resources to meet the qualification requirements. Cash in hand, lines of credit etc. List below and attach copies of supporting documents ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………
3. Name, address, e-mail, telephone, telex, fax numbers of the Tenderer’s Bankers who may provide reference if contacted by the Employer. ………………………………………………………………………… ………………………………………………………………………… …………………………………………………………………………
4. Information on current litigation in which the Tenderer is involved.
OTHER PARTY (IES) CAUSE OF DISPUTE AMOUNT INVOLVED (KSHS)
I certify that the above information is correct.
…………………… ……………………… ……………………… Title Signature Date
Page 89 DECLARATION FORM
To: Date: …………………….. The Managing Director, Kenya Pipeline Company Ltd, KenPipe Plaza Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box 73442–00200 Nairobi, Kenya.
The tenderer i.e. (name and address)
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………………………………………………………………………………………….
declare the following: c) Has not been debarred from participating in public procurement. d) Has not been convicted or involved in and will not be involved in corrupt and fraudulent practices. e) Has not been insolvent, in receivership, bankrupt or is not in the process of being wound up and is not the subject of legal proceedings relating to the foregoing. f) Is not guilty of any serious violation of fair employment Laws and practices.
…………………………………………………………………………………………… Name Signature Date
(To be signed by authorized representative and officially stamped)
Page 90