Karnataka Food and Civil Supplies Corporation Limited s1

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED K.H.B.COMPLEX,1 ST FLOOR,MAHANTESH NAGAR,BELGAUM-16 BELGAUM DISTRICT REQUEST FOR PROPOSAL For Milling of paddy procured during 2011-12 in the District of BELGAUM

SL Events Date & Timings Venue No. 01 Commencement of Sale 02-04-2012 District Manager, of Tender Documents 10 AM to 5.30 PM KF&CSC Ltd., KHB Complex, 1st Floor, Mahantesh Nagar, Belgaum-590016 02 The last date for sale of 09-04-2012 -“- Tender up to 5.30 PM 03 Last date to receive the 18-04-2012 -“- Tender Documents up to 5.00 PM 04 Time and date of opening 19-04-2012 -“- of Tenders. 11.00 AM INDEX 1.Scope of work Terms and conditions. 2.Eligibility / pre qualification 3.Documents to be furnished along with the pre qualification or technical bid.

4.Technical specification regarding conversion of paddy 5. Terms and conditions of transport, storage, packing and mode of delivery. 6. Evaluation of bids and award of contract. 7. Terms of payment. 8. Period of contract 9. Security Deposit and Agreement. 10. Other conditions/stipulations

1 1. Scope of the work

1.1 The Karnataka Food and Civil Supplies Corporation is the agency appointed by the Government of Karnataka for purchase of paddy of 2011- 12 season from the farmers under the Minimum Support Price Operation Scheme. Accordingly the Karnataka Food and Civil Supplies Corporation………….district has opened purchase points for procurement of paddy from the farmers under this scheme. It has been stored in the godowns located in different places of the district, the particulars of which are given in annexure-A to the RFP. 1.2 The work tendered in the RFP involves conversion of paddy stored as per details in annexure-A to the RFP into rice by way of hulling in the rice mills owned by the successful bidders as per the specifications prescribed in paragraph of the RPF-4 and of the RFP subject to the terms and conditions in page-3 1.3 The successful bidder may inspect the paddy at the respective godowns/Purchase points described in Annexure-A to RFP during the working hours of any working day in consultation with the respective District Manager. 1.4 The successful bidder shall deliver the rice after conversion to the same district Wholesale Point, as per District Manager direction, where the Milling has been taken place. as per the milling orders as stipulated in paragraph-4 of the RFP. 1.5 The Successful bidder shall not mill any paddy or store any paddy in his premises other than that released from KFCSC till the quantity committed for hulling in compliance of this contract is completely hulled and corresponding quantity of rice is delivered to KFCSC. In other wards once the contract is signed and first consignment of paddy is released by KFCSC, the mill shall be used only for hulling the paddy of KFCSC till the contracted quantity is hulled and corresponding quantity of rice is delivered to KFCSC. 1.6 KFCSC reserves the right to enter in to a contract with other technically qualified bidders for hulling at the rates agreed between KFCSC and the successful bidder, if the situation demands. 2. Eligibility / pre qualification conditions:

2.1 Persons having rice mills within a radius of 75 Kms from the godowns where the paddy is stored as per annexure-A are eligible to bid.

2.2 The mill owned by the bidder should have the milling capacity of 2 MTs or more per hour. (a) The rice mill should have cleaning machines like pre cleaners, paddy de-stoners and rice de-stoners. (b) The rice mill shall have minimum three whiteners and two silky polishers. (c) Rice mills should have optical colour sorters, length graders.

2 2.3 The rice mills of the successful bidders should have licensed by the concerned APMC to process stock and trade in paddy and rice. 2.4 Bidder should have valid registration certificate under VAT Act and Service Tax Act. 2.5 Bidder should not have been convicted for any offence for violation of Essential Commodities Act 1955 or orders there under. 3. Documents to be furnished along with the pre qualification or technical bid . 3.1 Copy of the license for the rice mill issued under section-72 of the APMC Act-1966 for processing and stocking of paddy in addition to trading license issued by local APMC. 3.2 Copy of certificate of registration under service tax Act, VAT Act and also copy of the acknowledgement for having filed service tax returns and VAT returns for the previous year. 3.4 An affidavit regarding. (a) Not having been prosecuted under Essential Commodities Act-1955 or any orders there under in any court of law. (b) Not having been black listed by any organization or Government for non-performance of contractual obligation. 3.5 In case of partnership firm or Co-operative or Corporate the bidder should furnish a copy of the partnership deed or byelaw or memorandum. 3.6 The bidder should furnish letter of authority or power of attorney having authorized the person to sign the documents on behalf of firm or society or corporate body.

4. Technical specification regarding conversion of paddy.

4.1 The successful bidder on receipt of the milling order has to lift paddy from the storage point and shall transport the paddy at his cost, convert the paddy into rice as per the stipulations mentioned in paragraph 4.2 below within given time as per the quality standards prescribed by Government of India stated in paragraph 4.3 below to 5% polish and specification.

4.2 The successful bidder if entrusted with the work of hulling paddy shall give a minimum conversion of 67 Kg rice including broken grains for every 100 Kgs of paddy. Out of the 67 Kgs of rice so obtained, half broken rice shall not exceed 25% and multiple broken shall not exceed 1%. 4.3 The successful bidder will be responsible to deliver the resultant rice conforming to Government of India FAQ uniform specification for grade 'A' and common rice for marketing season 2010-11 prescribed vide its letter No.8-7/2010-S&I dated 16.06.2010 as detailed below:-

Rice shall be in sound merchantable condition, sweet, dry, clean, wholesome of good food value, uniform in colour and size of grains and free from moulds, weevils, obnoxious smell, admixture of unwholesome poisonous substances, Argemone mexicana and Lathyrus sativus (khesari)

3 in any form, or colouring agents and all impurities except to the extent in schedule below. It should also conform to PFA Standards.

Schedule of specification Sl.No. Refractions Maximum Limit (%) Grade’A’ Common 1. Brokens* Raw 25.0 25.0 Parboiled 16.0 16.0 2. Foreign Matter** Raw/Parboiled 0.5 0.5 3. Damaged#/Slightly Damaged Grains Raw 3.0 3.0 Parboiled 4.0 4.0 4. Discoloured Grains Raw 3.0 3.0 Parboiled 5.0 5.0 5. Chalky Grains Raw 5.0 5.0 6. Red Grains Raw/Parboiled 3.0 3.0 7. Admixture of lower class Raw/Parboiled 6.0 - 8. Dehusked Grains Raw/Parboiled 12.0 12.0 9. Moisture content @ Raw/Parbioled 14.0 14.0

* Including 1% small brokens. ** Not more than 0.25% by weight shall be mineral matter and not more than 0.10% by weight shall be impurities of animal origin. # Including pinpoint damaged grains. @ Rice (both raw and parboiled) can be procured with moisture content up to a maximum limit of 15% with value cut. There will be no value cut up to 14%. Between 14% to 15% moisture, value cut will be applicable at the rate of full value.

5. Terms and conditions of transport, storage, packing and mode of delivery. 5.1 To enable Karnataka Food and Civil Supplies Corporation to check the quality of hulling, the successful bidder is required to inform the District Manager of the district in which the storage godown is located at the following stages. (a) Before packing the hulled rice. (b) Before dispatch of the hulled rice. 5.2 The successful bidder should take precautions to prevent damage or deterioration to paddy or rice during transportation, storage, and milling and till the rice is delivered. He should also insure the stock at his cost.

4 5.3 The successful bidder should deliver at his cost the hulled rice at the storage place from where the paddy was lifted or any other nearby godown suggested by District Manager. 5.4 The successful bidder should pack the hulled rice in new gunny bags of 50 Kgs capacity. All the gunny bags should be properly stitched with 14 stitches with strong twine and carefully knotted and duly stenciled. Stencil design will be provided to the successful bidder free of cost by the corporation. 6. Evaluation of bids and award of contract. 6.1 The tenders will be evaluated by evaluation committee i.e. Deputy Commissioner, Deputy Director (Food) and Concurrent Auditors of the concerned district. The evaluation of the technical bids will be taken up first. 6.2 The documents which have been enumerated in the list of documents in para-3 of this RFP shall be enclosed to the pre qualification bid along with the Demand Draft for Rs.1 Lakh in favour of concerned District Manager towards EMD and placed in a cover superscribed with words “prequalification bid for hulling of paddy 2011-12” and the cover should be properly sealed. The documents enclosed if found to be defective, insufficient or invalid the same will be rejected. The financial bid of such a bidder will not be opened.

6.3 The decision of the district tender evaluation committee is final and binding regarding disputes at the time of opening the tender. 6.4 The bidder shall quote the amount payable for converting one quintal of paddy into rice as per the technical specifications prescribed in para-4 of this RFP and shall include cost of transportation, conversion cost or hulling cost, cost of new gunny bags in which the hulled rice is packed and delivered, cost of loading of paddy from storage point and unloading of rice at storage points specified by the corporation, stitching, stenciling etc. In other words, the bid amount shall include the entire costs incidental to transportation of paddy from the KFCSC godown, processing of the same into rice and delivering the rice so produced in new gunny bags to the place from where the paddy was lifted as per the terms and conditions of the RFP. Separate bid amounts shall be mentioned in respect of paddy stored in different godowns. Bid evaluation will be separately done and decides godown wise. 6.5 The financial bid should be in the format prescribed in annexure-B to the RFP. Conditional bid if any will be rejected summarily. 7. Terms of payment. 7.1 The payment will be made only against the bill preferred, and will be made only for actual operations carried out. No extra storage charges is payable for delayed lifting of rice for the reasons beyond ones control. 7.2 If the successful bidder fails to hull and deliver the rice within the specified time, the EMD and Security deposit will be forfeited in addition

5 to claming of the loss and differential cost suffered by the Corporation. 7.3 The successful bidder is entitled to retain to himself the brawn, husk and small broken rice. The gunny bag in which the paddy was supplied to him would be retainable by the bidder at Rs.10/- per bag and it shall be adjustable out of service charges payable to him. 8. Period of contract.

8.1 The successful bidder should not insist for minimum business in other words the quantum of business should not be assured. 8.2 The successful bidder should agree that the terms and conditions shall be in operation for a period of one year from the date signing the agreement or till the completion of hulling the entire paddy and delivering the resultant rice in full (till the completion of work assigned) 9. Security Deposit and Agreement.

9.1 The successful bidder should submit a Demand Draft drawn in favour of KFCSC payable at concerned district head quarters for Rs.5 lakh towards security deposit. (EMD Rs. 1Lakh will be adjusted towards the part of security Deposit on payment of Rs. 4 Lakh.) Further he should submit a bank guarantee given by a scheduled bank in favour of KFCSC for Rs.16 lakhs towards security. 9.2 The successful bidder should sign the combined agreement confirming the execution of contract on a bond paper of Rs.200/- and submit to the concerned district office within three (3) days from the date of communicating his appointment. 10. Other conditions / stipulations. 10.1 The successful bidder on breach of contract is liable to make good, the losses including damages caused to the stocks. Such loss or damage will be monetized and recovered from the miller out of any monies due to him in addition to terminating the contract. Even if the breach of contract is not resulting in any loss or damage, contract shall be terminated forthwith. 10.2 The losses including damages will be recovered at 1½ times of economical cost fixed by the government or market rate whichever is higher. 10.3 In case of disputes, the matter will be referred to a sole arbitrator as per mutual agreement of both the parties i.e. the successful bidder and the KFCSC. 10.4 The Corporation reserves the right to accept or reject any offer or tender without assigning any reason whatsoever.

I accept the above Terms and conditions

Signature of the bidder with seal

6 Annexure-A to RFP No______Dated:31-03-2012 (Fig in MTs) SL Name of the storage godown Total Qty No. of Total No. procured in bags 50 Qty Stored Qty Dist kg Belgaum district 7022.600 - - -

1 SWC,BAILHONGAL 13022 651.100 2 SWC,KATKOL 47927 2396.350 3 SWC,HIREBAGEWADI(BELGAUM) 10190 509.500 4 CWC,DHARWAD 9624 481.200 5 SWC,AMARGOL,HUBLI 8508 425.400 6 SWC,SANKESHWAR(HIRA SUGAR) 32578 1628.900 7 SWC,GADAG 13890 694.500 8 SWC,NEW COTTON 4712 235.600 MARKET,HOSUR,HUBLI

Total 7022.600 140452 - 7022.600

7 Annexure-B Annexure to RFP No………..dated ……….. Financial Bid Karnataka Food and Civil Supplies Corporation Ltd.,

Belgaum District Ref: Tender Notification No.KFCSC/BGM/PROC/MSP/PADDY/2011-12 Dated: 29-03-2012.

1. Name of the bidder with address______

2) I agree to deliver not less than 67Kgs (in words) of rice as per the technical specification prescribed in paragrah-4 of the RFP, for each quintal of paddy received by me for milling.

SL Location of the Quantity of paddy Bid amount for No. godown in which the stored conversion paddy is stored inclusive of all operations detailed in paragraph 6.4 of the RFP 01 02 03 04

Signature of bidder with seal.

8 Brief Short Term Re- Tender Notification No.KFCSC/BGM/PRO/MSP/Paddy/2011-12/ Date:29-03-2012

***** Short term sealed tenders are invited under two cover system from rice millers for milling of paddy procured during 2011-12 and stored in godowns located in Belgaum district/Neighbouring district. The particulars of the locations of the godowns are furnished in Annexure-A to the request for proposal (RFP). Persons having rice mills within a radius of 350 Kms from the godowns where the paddy is stored and who satisfy the other terms and conditions stipulated in the RFP are eligible to bid.

The request for proposal containing the terms and conditions can be obtained from the District Managers K.F & C.S.C.LTD., K.H.B.Complex, Mahantesh Nagar, Belgaum from 02-04-2012 To 09-04-2012 during the office hours on payment of Rs.100/- (Rupees One hundred only) non- refundable or can be downloaded from the website www.kfcsc.com, free of cost. The tender shall accompany with a Demand Draft for Rs.1,00,000/- towards EMD in favour of District Manager KFCSC Ltd., Belgaum. and also the documents enumerated in the RFP. The last date for submission of completed tender forms is 18-04-2012 at District Office Belgaum up to 5.00 PM. The tenders will be opened in the presence of the bidders or their representatives present at the time of opening on 19-04-2012 at 11 AM in the DM,KF&CSC LTD., K.H.B.Complex, Mahantesh Nagar,Belgaum district office. The details of the tender can be obtained from the DM,KF&CSC LTD., Belgaum district office and also available in KFCSC website www.kfcsc.com.

District Manager, KF&CSC LTD.,BELGAUM.

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