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Kenya Pipeline Company Limited Epc Tender for The 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
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