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OIL & NATURAL GAS CORPORATION LTD.

CORPORATE - MATERIALS MANAGEMENT Policy Monitoring & Control (P.M.C.) Section

MATERIALS MANAGEMENT MANUAL


(Corrections incorporated upto 5th October 2012)

TEL BHAVAN DEHRADUN - 248 003

INDEX
Brief Description INTRODUCTION Para No. 1-5 Page No. 1

CHAPTER-1
PURCHASE PROCEDURE * Dependent Factors * Classification of materials - Proprietary Materials - Non-Proprietary Materials - Stock items - Non Stock items - Capital Items - Stores & Spares * Functions of Purchase Department * Procedure for placing indent on Materials Management - Variation in quantity - Equipment/OEM wise Indents for Stores & Spares - Indication of Source of Supply - Expenditure Sanction - Specifications - Indent delivery date(s) and urgency - Assessment of Requirement - Co-ordination with MM - Item-wise Estimated cost in Indent - Minor variation in specification - Indication of Standard Sizes in Indents - Date of Indent - Recoupment of Stock items - Ad-hoc purchases - Budget Allocation - Grouping of items - Separate indents for items independent in nature - Material code and consumption schedule - Indents for stores & spares through RCMLO * Centralised/ de-centralised purchases * Registration of firms, for indigenous purchase on limited tender PURCHASE METHODS * Purchase through DGS&D 7 8 8.2(a) 8.2(b) 8.2(c) 8.2(d) 8.2(e) 8.2(f) 9 10 10(i) 10(ii) 10(iii) 10(iv) 10(v) 10(vi) 10(vii) 10(viii) 10(ix) 10(x) 10(xi) 10(xii) 10(xiii)-(xvi) 10(xvii) 10(xviii)-(xix) 10(xx) 10(xxi) 10(xxii) 10(xxiii) 11 12.1 13 14 3 3 3 3 3 4 4 4 8 9 9 9 9 10 10 11 11 12 12 12 12 12 13 13 13 14 14 14 15 16 18 23 23

* * * *

Open tenders Limited tenders Procedure for purchases upto Rs. 5 lakhs. Purchase on single tender - Purchase of non-proprietary items - Purchase of stand by equipment and accessories - Purchase of Proprietary Articles (PAC) - Hiring of services of Domain Experts

15 16 16.4 17 17.1 17.2 17.3 17.4 18 18.1 18.2 18.2.3 18.2.4 19 20 21 21.5 22 23 24 .

24 25 26 26 26 27 30 30 30 30 31 31 31 32 33 35 37 39 39

* Petty purchase/hand quotations - Petty purchases - Purchase against hand quotations - Purchases from State emporium/ Super Bazar/Govt.Deptt/undertakings - Inspection of non-consumable items * Purchase through Annual Rate Contract * Purchase through Board of officers * Emergency purchase - Emergency purchase by user deptt * Two Bid System * Short-Listing of Bidders * Finalisation of Bid Evaluation Criteria (BEC) and floating of tenders * * * * * * * * * * * * * * * INVITATION OF TENDERS Coordination and bulking of Demands for purpose of inviting tenders Enquiry register Tender Sets to be kept ready and tender intimation to be sent to prospective bidders Submission of tender for publication in press Time to be allowed to bidders to quote Validity period Notice inviting Quotations/tenders (NIT) Number of copies of offers to be called from bidders Variation in quantity after invitation of tender Sale of bidding document to firms with whom business has been banned/suspended. Tender fee Purchase of bidding documents by Agents in India Cancellation of tenders-Refund of tender fee Exemption from payment of tender fee Intimation regarding invitation of tender to trade Commissions/Consulates/Representatives of foreign Govts.

25 26 27 28 29-29.3 30 31 32 33 34 35 36 37 38 39

41 41 41 42 42 42 43 44 44 45 45 46 46 46 47

* Tender fee * Offers without having prescribed bidding document of ONGC * Sale of bidding document * Issue of bidding document * Issue of bidding document after closing date * Receipt of tenders * Tender Box * Nomination of tender receiving / opening officer(s) * Accounting of tenders * Opening of tenders * Numbering of Tenders/disclosure of prices/reading out the rates of tenders * Opening of tenders in public * E-mail/fax/telex/telegraphic offers * Cancellation/Re-invitation of tenders * Extension of tender opening/closing date * Clauses in tenders/ Supply orders - Warranty & Guarantee - Warranty clause - Penalty/Liquidated Damages/Cancellation clause - Liquidated damage/Failure & Termination clause - Procurement of goods - Fall clause - Inspection and rejection of material by consignee(s) - Subletting and Assignment - Earlier Delivery - Pilot approval - Bulk inspection - E-Mail/Telegraphic/Fax offers - Arbitration clause - Submission of tender samples after opening of tenders - Scale of Rebate - Catalogue and manual in case of new buys - General conditions * Earnest money and Security Deposit - Earnest money/Bid bond/Bid Security - Security Deposit/Performance Bank Guarantee/Contract Security - Security Deposit/Contract Security / Performance Bond against development orders/rate contract under import Substitution programme

40 41 42 43 44 45 46 47 48 49 50-51 52 53 54 55 56 56.1. 56.1.2 56 .2 56.3 56.3.1 56.4 56.5 56.6 56.7 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 57 57.1 57.2 57-3

48 49 49 50 51 52 52 53 53 55 55 56 57 57 58 59 59 59 59 60 60 61 63 63 63 64 65 65 65 66 66 66 66 67 67 68 70

- Release of Security Deposit/Performance Bond/Contract Security - Release of Earnest Money/Bid Security/ Bid bond/Security Deposit/Contract security/PBG - Invoking of Bank Guarantee (MM/53/2010 dated 17.05.2010)

57.4 57.5

70 70

57.6

71

* Provisions as per various Govt./Statutory 58 guidelines - Price preference to domestic bidders in ICB 58.2 - Supplies of material and equipments 58.2.1 - Methodology for calculation of price 58.2.1.3 preference - Granting of price preference 58.2.1.4 - Turnkey projects 58.2.2 - Oil field services 58.2.3 - Price/purchase preference to the products 58.3 of Small Scale Sector - Purchase of Lead Acid Batteries with 58.4 provision for buy-back of the used batteries by the supplier. * Comparative statement * Clarification from bidders after tender opening - Correspondence with Suppliers by indentors - Technical comments on offers - Level for technical comments on offers 59 60 61 62 62.4

72 72 72 72 72 73 73 73

74 77 77 78 78 79 79 80 80 81 81 82 83 84 84 84 85

* Formation of tender committee and its 63 monetary limits * Single item/group of similar items 64 * Convening of tender committee 65 * Brief for and level of tender committee 66 * Constitution of Tender committee 66.1 * Evaluation of bids by Tender Committee 67 and preparation of tender committee proceedings * Acceptance of Recommendations of T.C. 68 * Proposals to Executives Purchase Committee (EPC) * Minutes of discussion of Executive Purchase Committee * Consideration of offers * Purchase of Machinery and Equipment * Purchase of capital items and spares therefore * Late tenders 69 70 71 72 73 74

* Splitting of tenders/Supply orders * Insufficient competition and Reasonability of Rates - Placement of order when one offers is received - Certification of urgency - Reasonability of rates * Negotiation * Powers for various activities - Competent Authority for approving various activities - Open tenders where TC is required - Limited tender where TC is required - Single tender on PAC tender where TC is required - Single tender on Nomination basis where TC is required - Board Purchase - Acceptance of TC recommendations when majority views are not acceptable - Acceptance of offer other than lowest technically acceptable offer (where TC not held) * Powers for placing educational/Development order under Import Substitution * Miscellaneous powers of officers of MM - Powers for sanctioning freight by road for materials carried - Powers for sanctioning freight by air where air freight is cheaper than freight by alternative mode of transportation - Powers for sanctioning handling and transportation charges at Railway Station, Stores Yards and Ware-houses - Powers for Expenditure sanction and purchase of stationery * Power for purchase of proprietary Articles * Powers for purchase by negotiation * Signing of supply orders/contracts by officers * Exercising of powers of MM discipline by officers designated in Mechanical/Electrical/ Civil etc. * Observance of laid down procedure * Relaxation in conditions of tenders - Relaxation in standard terms and condition of supply order for purchases form OEM/Manufacturer of proprietary items

75 76 76.2 76.3 76.4 77 78 78.1 78.3(a) 78.3(b) 78.3(c) 78.3(c)(i) 78.3(c) (ii) 78.3(d) 78.3(f)

86 88 88

89 91 91 91 92 93

93 93

79 80 80.1 80.2

93 95

80.3

80.4 81 82 83 84 97 98 98 99

85 86 86.3

100 100 100

* Post contract issues * Acceptance of material in deviation to specified specifications * Marginal adjustment in supply orders Placing/Termination of supply orders/Contracts - Placing of supply orders/Contracts - Termination of contract/supply order * Distribution of copies of supply orders * Follow up of supply orders * Service contracts * Extension of delivery / mobilization / completion date * Extension in Delivery period and liquidated damages in case of Development orders * Levy of liquidated damages for delays in supply * Review of earlier decision * Copies of letter authorizing extension of Delivery/Mobilization/Completion date * Procurement of mud chemicals - Schedule for placing indent/supply orders for mud chemicals and handling thereof - Classification of chemicals - Commodity chemicals - Speciality chemicals - Procurement method - Commodity chemicals - Payment - Speciality chemicals - Information to be provided by Bidders alongwith their offers - Sampling, bonding and debonding of bulk material - Rejection of Bulk sample - Debonding and despatch of mud chemicals - Random Sampling - Purchase from manufacturers/public undertakings - Earnest money/Security Deposit - Substandard product - Third party inspection for accepting bulk supplies of mud chemicals from abroad - Procurement of Barytes and CMC * Vendor Rating * Securing Adjustment-follow up of claims * Amount of compensation * Retirement of Documents from bank * Kardex showing progress of action on indents * Period within which indents to be processed * Complaints/Representation Consideration

87 88 89 90 90.1 90.2 91 92 93 94 95 96 97 98 99 99.1 99.2 99.2(i) 99.2(ii) 99.3 99.3.1 99.3.5 99.4 99.4.6 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 100 101 102 103 104 105 106

101 101 102 102 102 107 107 108 108 109 110 111 112 113 114 114 114 114 114 115 115 116 117 117 118 119 119 120 120 120 120 121 121 124 124 124 124 124 125 125

CHAPTER-2
* Maintenance of Kardex * Maintenance of Buffer Stock * Fixation of maximum/minimum limits - Indigenous items - Imported items * Review of Minimum/Maximum limits * Preparation of recoupment requisition 107 108 109 109.2 109.3 111 112 136 137 137 138 139 140 140

CHAPTER-3
* Project Stores 113 142

CHAPTER-4
CLEARING AND FORWARDING PROCEDURE * C&F section Responsibility * Transit documents-Receipt of * Arrival of materials * Damages/discrepancy in Receipt of materials * Raising of discrepancy report - Discrepancies of trivial value - Stock Discrepancy - Stock Verification Discrepancy * Despatch of materials * Despatch convoy note/despatch register * Escorting of material 114 115 116 117 118 118.3 118.4 118.5 119 120 121 143 143 144 145 146 147 147 147 147 148 149

CHAPTER-5
INSPECTION AND ACCOUNTING OF MATERIAL * Inspection of material * Inspection after expiry of contract delivery period - Third party inspection for accepting bulk supplies of mud chemicals form abroad * Receipt of Material * Packing material-accounting of * Preparation of Goods Receipt Voucher(GRV) * Binning of materials * Stocking of materials * Scrutiny of material Requisition/Issue note * Material requisition/Issue Voucher-Preparation of * Disposal of indent-issue return Voucher - Guidelines for stock holder * Issue of material-timings 122 123 123.3 124 125 126 127 128 129 130 131 131.1-131.5 132 150 151 152 152 153 153 154 155 156 157 158 158 159

* Issue of material to out station * Items received against adhoc demand(s) * Recording of capital/stores and spares items - Stores & spares - Capital items * Return of material * Replenishment of spares * Transfer of material-preparation of Materials Transfer Note(STR-19)(SA03)(MTN) * Submission of vouchers * Cancelled or missing vouchers * Central register of ledger/Stock cards and auditable documents * Kardex cards-index register * Kardex cards maintenance of * Kardex cards-numbering of * Kardex cards-opening of * Closing of Kardex cards * Kardex cards reconciliation of * Kardex cards-posting of/preparation of adjustment vouchers * Duties of numerical ledger poster * Filling up of various formats for computerised inventory control * Stock status report * Slow/Fast moving items

133 134 135 135.1 135.2 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152

160 160 160 160 161 162 163 163 164 165 165 166 166 166 167 167 167 169 170 170 170 170

CHAPTER-6
* Packing Section * Packing of material 153 154 172 172

CHAPTER-7
* * * * * Control office Drill site material Disposal of unserviceable material Issue hours of material Payments of Bills - Foreign Bidders/Indian Bidders * Railway credit notes 155 156 157 158 159 159.1 160 174 174 174 174 175 175 177

CHAPTER-8
COMPUTERISED INVENTORY CONTROL * Annexure of order schedule * Instruction for preparing Annexure of order schedules 161 161(i)161(iii)(h) 178 178-244

CHAPTER-9
*e-PROCUREMENT *Reverse auction Types of Auction Price Preference Purchase Preference Features of the Online event Implementation of e-procurement & Reverse Auction Bid return procedure Familiarization/training of vendors 162 162.10 162.10.4 162.10.5 162.10.6 162.10.10 162.11 162.12 162.13

CHAPTER-10
PROCUREMENT OF PREMIUM BITS ON CONSIGNMENT BASIS * Procurement of premium bits on consignment basis Payment 163 163.14

FORMATS
STR-1 STR-2 STR-3 STR-4 STR-4A STR-5 STR-6 STR-6A STR-7 STR-8 STR-9 STR-10 STR-10A STR-11 STR-12 STR-13 STR-14 Goods Receipt Voucher Goods Receipt Control Register Consignment Inward Register Stores Requisition/Issue Note Stores Return Note Proforma for Maintenance of Records of Capital/Stores & Spares Indent Form for Purchase Non-availability Certificate in case of Emergency Purchase Kardex Card Gate Pass Stock Account Register Stock Taking Sheet-Capital Items Stock Taking Sheet-Stores & Spares Quotation Form Convoy Note Register Comparative Statement Railway Receipt Register 245 246 247 248 252 253 254 258 259 262 263 264 265 266 271 272 274

STR-15 STR-16 STR-17 STR-18 STR-19 STR-20 STR-21 STR-22 STR-23 STR-24 STR-25 STR-26 STR-27 STR-28 STR-29 STR-30 STR-31 STR-32 STR-35 STR-36 STR-37 STR-38 STR-39 STR-40 STR-41

Discrepancy Report Bill/Purchase Register Packing List Despatch Register Material Transfer Note Proforma for Explanation of Discrepant Items Material Adjustment Voucher/Loss Statement Register to watch finalisation of discrepancies Provisional Loss Statement Final Loss Statement Register of Serial Numbers of Stock Sheets Register of Losses Daily Wagons Register Despatch Note Convoy Note Despatch Convoy Note Issue Control Register MT Note Register Emergency Purchase Inspection Requisition Opening Advice Closing Advice Fortnightly Completion Certificate for months Port Arrival and Forwarding Note Purchase Order Upto Rs. 1,00,000/Vendor Performance Card

275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 303

_________________

INTRODUCTION
1.1 Work in the Oil & Natural Gas Corporation Ltd. (ONGC) has been organised on the basis of functional Business Groups with commercial working relationship among these groups. The Business Groups are: a) b) c) d) 1.3 Exploration Drilling Operations Technical

1.2

Director concerned of the above Business Groups assume effective charge of all functional aspects of Materials Management. The procurement and stocking of materials is decentralised to the respective Business Groups at Headquarters and Regions. Every Business Group has a structured Materials Management set up with suitable structure at the Regions and Headquarters. The Headquarters' Materials Management set up with the concerned Director is responsible for the following:i) Procurement and related work including Steering Committee cases, Executive Procurement Committee cases. However policy matters including liaison with the Govt. will be done by the Materials set up under Director (T). Providing superintendence to the Materials set up at the Regions under the concerned Business Group with regard to different functions of Materials Management for example Inventory Control, Disposal, Codification, Standardisation of specifications, Computerized MIS and Stock Verification etc. Bulking of all high value indigenous and critical items to be procured centrally for taking maximum advantage in price discount. Such exercise would be done by the Headquarters Materials set up for all Regions under the group.

2.1

ii)

iii)

2.2

The above functions are to be discharged by personnel of Materials Management discipline who will be so allocated to each Business Group both at Headquarters and at the bases. However, the procurement of all indigenous materials except as mentioned above is decentralised with their respective Business Group.

(MM/56/2010 dated 11.10.2010) 3.1 Various powers indicated in this manual, as per authorities delegated under the provisions of BDP, shall stand automatically updated in accordance with the revisions / amendments carried out to the respective provisions of BDP (from time to time), unless any other specific instruction is issued subsequently by Chief MMServices/PMC with respect to the provisions of such revisions in BDP. 3.2 Materials procurement powers are to be exercised only by exception by functional executives other than Materials Management executives by special nomination by the Competent Authority as a stop gap arrangement till such time Materials Management executives are in position.

4.

The Materials Management Support Groups will function strictly within the policy guidelines and such administrative norms as may be prescribed by Director (Technical). Provisions of Materials Management Manual are duly approved by Executive Committee/steering Committee and ratified by the ONGC Board. Therefore, any deviation from the prescribed policy guidelines or norms on Materials Management will require reference to Director(Technical) through the Director Incharge of the Business Group for approval / ratification of Competent Authority wherever considered necessary.

5.

CHAPTER 1

CLASSIFICATION OF STORES

CHAPTER-1 PURCHASE PROCEDURE


6. Aim of the Materials Management Organisation is to procure, preserve and deliver Materials in proper time to ensure smooth progress of the project works and administrative machinery. DEPENDANT FACTORS Every effort will be made by the Materials Management Organisation to meet the needs of the Engineers and the Scientists with regard to the Materials. But the success of the aspiration of the Materials Management depends very much on the proper planning and timely intimation by the concerned Engineers / Scientists to the Materials Management. It is, therefore, essential that these aspects are kept in view to ensure timely procurement of materials/services. CLASSIFICATION OF MATERIALS The purchase can be made with advantage on the results of classification of material and stock levels. It is, therefore essential that either of these points is given treatment before passing on to the purchase procedure. For procurement/accounting, the materials may be classified into following categories:-

7. 7.1

8. 8.1.

8.2

a) Proprietary Materials: Proprietary materials are those which are manufactured by the makers of the main plants themselves such as spare parts for Willys' Jeeps. b) Non-Proprietary Materials: Non-Proprietary materials are those which are manufactured by many firms such as chemicals and laboratory equipments. c) Stock Items: Fast moving items of regular consumption as also spares required for running repairs and periodical overhaul of machinery and equipments are considered `Stock Items'.

The senior most Materials Management officer not below E-1 (M.M.Officer) will have full powers to declare stores and spares as `Stock Items'. (Authority: Item No. G.1.1. of "The Delegated Powers, 1994")

d)

Non Stock Items: Non-stock items are those which are to be purchased against specific requirements of the indenting departments.

e) Capital Items: i) All items costing Rs.5, 000/- or more and with a life of more than one year are categorised as Capital Items". ii) Items costing less than Rs.5,000/- which have a life of more than one year and can be regarded as complete units in themselves (e.g. small compressors, pumps, electrical motors, welding sets, electrical testing instruments etc.) are also to be categorised as "Capital Items".

(MM/56/2010 dated 11.10.2010) Chief - MM Services will have full powers with the concurrence of Finance to declare an item costing less than Rs.5,000/- as "capital item". (Authority: Item no. MM1 of BDP-2009)

f) Stores & Spares: All the items, which cost less than Rs.5, 000/- and have a life of less than one year are to be treated as "Stores & Spares". 8.3 The Inventories in ONGC have been broadly classified into two separate groups e.g. "Stores" and "Spares". These two groups have been further subdivided into the following classes:Class Description EDP Class Alpha Code Code 3 4 Remarks

Sl. No. 1

2 STORES

1. 2. 3. 4. 5.

Drill Pipes Casing Pipes Other Pipes and Pipe fittings Drill bits Other Drilling Stores (all other sub-groups under DT class excluding those stated above)

01 02 03 04 06

DP CP OP DB DS

6.

7.

Electrical material i.e. Electrical fittings, cables, insulating materials etc. including Electrical instruments. Building Materials and other Civil Engineering Materials including Timber Oil Well Cement Chemicals including Mud Chemicals P.O.L. e.g. Oil, Grease and Lubricating material etc. Metals e.g. Bounds, Bars, Plates etc. General Tools on Stock Misc. Stores i.e. drawings materials, bolts, nuts, rope, screw, tents and tarpaulins etc Tubing, Pipes and Fittings Well Head and X-Mas Trees

07

EG

08

BM

8. 9. 10. 11. 12. 13.

09 10 11 12 13 14

OC CM OL ML GT OT

14. 15.

15 16

PT WX

SPARES 16. 17. Spares for turbo drills and connected items Spares parts for drilling equipment viz. Rigs and Diesel Engine, Mud Pumps, Air compressors etc. Diesel Engine Slush Pump Draw Works Crown Block, Travelling Block, Swivel and Rotary table. Other Spares Spare Parts for i)Production Equipment ii) Other Spares Spare parts for cementing unit Spares parts for Geological Equipment (i.e. Equipment exclusively used for Geological works). Spare parts for Geophysical Equipment (i.e. Equipment exclusively used for Geophysical works) 05 21 TD DL

i) ii) iii) iv) v) 18.

22 23 24

PD CM GL

19. 20.

21.

25

GP

22. 23. 24. 25. 26.

Spare parts for imported Transport Equipment Spare parts for Indigenous Transport Equipment Spare parts for Electrical Plant and Equipment Spare parts for Civil Engg. Plant and Equipment Spare parts for Workshop Plant, Machinery and Equipment Other spares i.e. spares for other equipment not covered above such as spares for instruments etc. Spare parts for BOP elevators etc. Spares for Computer Hardware Spares for Boats and Floating Vessels Spares for Radar Communication equipment Spares for Production Platforms (Well process/supply)

26 27 28 29 30

TP TI EP CE PW

27.

31

PM

28. 29. 30.

32 33 34

BE CS VS

31.

35

RC

32.

36

PF

INDENTING FOR PROCUREMENT

9. 9.1

FUNCTIONS OF PURCHASE DEPARTMENT The vital functions of Purchase Department are: (i) (ii) What quantity to buy When to buy

(iii) From whom to buy (iv) At what price to buy (v) What quality to buy 9.2 The Purchase Department while making any purchase should see that : i) All the purchases are made for the properly authorised requisitions clarifying the purpose for which these are required; ii) All the materials requisitioned source after full enquiries; are duly ordered out from the right

iii) The right type and quality of the materials are bought from the cheapest source; iv) only the right quantities are purchased in right time; v) deliveries of all the materials are received by stipulated time; vi) supplier's bills are paid promptly to maintain good relations with the trade; vii) adjustments on claims due to shortage or secured; and (MM/62/2011 dated 21.07.2011) viii) Pre-bid-conference (Wherever applicable): (a) Pre-bid conference shall not be held in each and every case. However, Work Center may hold pre-bid conference in any case based on the need/justification for the same with the prior approval of concerned L-1 officer for cases where CPA is L-1 or below and of Director concerned for cases beyond the powers of concerned L-1 officer. Proposal for holding pre-bid conference should be initiated preferably by the Indentor at the indenting stage. However, if a need for holding pre-bid conference is felt by the TC in its meeting held before invitation of the tender, then TC can also propose for holding of the pre-bid conference. (b) Wherever it is decided to hold pre-bid conference, in NIT, date for due to any discrepancy are

closure of sale of bidding documents should be specified, providing sufficient time for response. It should also be indicated in NIT/bidding documents that all bidders who buy bidding documents are invited to attend the pre-bid conference. As soon as the sale of documents is closed, pre-bid conference is to be convened (the date and venue of pre-bid conference should be clearly indicated in the NIT and the bidding document). In the NIT and bidding document as well as during the pre-bid conference, bidders should be advised that ONGC expects the bidders to comply with the tender specifications/conditions which have been frozen after pre-bid conference, and hence non-conforming bids will be rejected straightaway. The indenting officer from the User department (who has framed/signed the specifications) is to chair pre-bid conference(s) with competent representative from concerned technical department (like E&C) and TC. It should be impressed upon the bidders to depute (for attending the pre-bid conference) representatives of status equivalent to the authority chairing the conference. (c) The issues raised by the prospective bidders during the pre-bid conference will be examined in detail by the Tender Committee. If due to the points/doubts raised by the prospective bidders, tender specifications or any specific term(s), condition(s) which is not a part of Standard Terms and Conditions of the Tender needs to be modified, then the same will be considered for modification. However, if there are any points/issues, which have been raised by prospective bidders during the pre-bid conference but have not been resolved, then a second pre-bid conference will be held which will be attended by all the Tender Committee Members. In this prebid conference, Tender Committee Members would again try to clarify the doubts raised by the prospective bidders, with a view to ensure adequate participation. (d) MM department in association with the concerned technical department will prepare minutes of the pre-bid conference and obtain approval of the officer who chaired the pre-bid conference. Thereafter, in case no modifications are required in the BEC/specifications/tender conditions, the bidder would be asked to submit their bids on due date and time and sufficient time would be given to the bidders to submit their bids. However, if, as a sequel to the pre-bid conference, modifications are required in the BEC and other tender conditions (excluding commercial conditions standardised by PMC), TC shall submit its recommendations for prior approval of the competent purchase authority (CPA) by providing detailed justification for agreeing to such modification(s). In this regard, Director concerned shall have full powers including in EPC level cases, provided, such changes are not in conflict with the existing policy/ procedure/ PMC instructions. However, in case of change of specifications as a sequel to pre-bid conference, necessary approval shall be obtained as per para 10(v)-b. (e) After obtaining such approval, these modifications should be made and communicated (through fastest mode of communication like fax) prior

to submission of bids with sufficient time to all the bidders to submit their bids; no change will be allowed thereafter. In other words, pre-bid conference(s) will be used to freeze various specifications, terms and conditions of the tender before opening of bids. (f) If as a sequel to the pre-bid conference, if an important tender condition regarding specifications/scope of work/delivery period/mobilization period/completion period requires major modification, then with a view to have transparency in the bidding process, sale of tender documents can be re-opened. In that case, TC should deliberate the case and submit their recommendations through CPA/concerned L-I executive to the concerned Director and Director-I/C (MM) for re-opening the sale of tender. The sale would be re-opened for a period of 15 days and for this purpose, advertisement would have to given in the press and information would have to be posted on the ONGC tender web-site also. In such situation, pre-bid conference would not be held again. The dates of re-opening of sale, closing of sale, re-scheduled tender closing/opening would be clearly specified.

10.

PROCEDURE FOR PLACING INDENT ON MATERIALS MANAGEMENT i) Variation in quantity: Indents for annual requirement will be formulated carefully after proper scrutiny and based on latest approved plan. Normally, no variation in quantity should take place but if the same becomes unavoidable, it would be limited to + 20%. Indents for procurement of machinery / equipment / stores / spares will be sent to concerned Materials Management on prescribed format (STR-6) preferably on annual requirement basis. Piecemeal demands will be avoided. ii) Equipment / OEM-wise indents for stores & spares: Indents for procurement of stores and spares will be raised equipment / OEM-wise.

iii) Indication of source of supply in Indent: The indentors, while sending indent to concerned Materials Management, will invariably indicate minimum three number of parties who are likely to quote for supply of items as per designed specifications. Where likely sources of supply are anticipated to be lesser than three, the reasons for not relaxing the specifications or for not splitting the work / reducing the quantity will be brought to the notice of higher authority(ies), as indicated below, for approval before sending indent to concerned Materials management a) For cases upto the value of Rs. 1.00 crore For cases between Head of concerned Business Group not below E-7 level Concerned Regional Director

b)

Rs.1.00 crore and upto Rs.4.00 crores

in case of Regions,concerned GGM/GM in case of Institutes and Director concerned in case of Hqrs. Director concerned.

c)

For cases above Rs. 4.00 crores.

(iv)

Expenditure Sanction: The indent must accompany the expenditure sanction. It will be ensured that total expenditure sanction as well as unit-wise / group-wise expenditure sanction is indicated in the indent.

(v)

Specifications : a) The indent must indicate clear and detailed specifications, drawings and samples, wherever necessary, so that there is no ambiguity left for the tenderers to quote for correct materials. The specifications should be drawn up in general terms without quoting reference to any particular firm or taking it as model specifications as far as possible. (MM/45/2009 dated 14.10.2009) b) Specifications (which should be as general and broad based as possible to generate competition) once given alongwith the indent would be considered as final and no revision later on / back flow for rechecking would be entertained. Any change in specification (before tender is floated) vis--vis earlier contract/tender (in case of re-tendering) will need the approval of the competent authority as defined at para 78.1-(1)(i), with full justification. Once pre-bid conference is held in a case, specifications should be frozen and after that no change in specifications will be permitted. In case change of specifications becomes absolutely necessary as a result to pre-bid conference, then same would require approval of the competent authority as defined at para 78.1-(1)(i), with full justification. Where no pre-bid conference takes place, no change in specifications is admissible except as provided herein. If the indentor seeks revision of specification with prior approval of concerned Director (recording reasons for modifications of specifications) and conveys the same to MM department before opening of bids [technical bids in case of two-bid system], it should be notified to all prospective bidders well in time. As far as possible in respect of turnkey projects and service contracts,

efforts should be made to frame the specifications on CRINE concept giving functional specifications. In such tender, the practice of floating RFP (Request for Proposals and thereafter, holding of pre-bid conference to firm up the specifications) should also be considered. In such case, since specifications would be firmed up after interacting with bidders, no pre-bid conference needs to be held after bid invitation. In case, specifications have been standardized within ONGC centrally, approval of such central standardizing authority will be necessary for making changes in the specifications. c) The indentors before sending specifications must make up their minds about the purchase of type of items required and its specifications. No team should be sent after the tenders have already been invited to study the equipments. Such study, if necessary, be completed before placing the indent. d) The indentors should not ask for proprietary materials or draw up specifications that would result in proprietary procurement, except in cases, where proprietary procurement is unavoidable. Specifications should normally be drawn in such a manner that there is a wide field of suppliers. (MM/45/2009 dated 14.10.2009) e) Whenever specifications have not been standardized, specifications will be prepared by the concerned User / Indenting department. Such specifications shall need the approval of the competent authority as defined at para 78.1-(1)(i). Wherever specifications have been standardized and approved at the level of concerned Director / EC, no further approval will be required. (vi) Indent Delivery Date(s) and Urgency: The indent must specify the time by which the material is required. In Indent, the definite delivery date and the place at which the materials are to be delivered or dispatched, will be indicated. The use of such terms as 'IMMEDIATE', 'AS EARLY AS POSSIBLE', 'URGENTLY REQUIRED', 'PRIORITY', as substitutes for the actual delivery dates are to be avoided and the delivery dates always indicated in red ink in the following manner:a) by_________________________________________(date) thereby that the whole quantity is required by the date). (meaning

b) __________(Quantity by____________(date) remainder from___________ (months) to ___________ (months) (meaning that so much is required by a particular date and the balance is required by monthly quota).

c) From __________(month) to ______________ (month) (meaning that equal monthly quotas may be delivered as appropriate). (vii) Assessment of Requirement: The indentor will be responsible to assess the requirement and to ensure that there is no over provisioning. Co-ordination with Materials Management: Before preparing indent, the indenting section should coordinate with the Materials Management concerned. This will help to make specifications more realistic and would enable the indentor to ensure that there is no stock in hand which can be used, after adaptation (if necessary). (ix) Item-wise Estimated Cost In Indent: The indentor should give the estimated cost item-wise in the indent. If the cost of the item at the time of placing the contract is more than the estimated cost, but the price difference is Rs. 100/- or less, no reference will be made to the indentor. If the price difference is more than Rs. 100/- then upto 10% of the estimated cost or Rs. 1,000/-, whichever is less, no reference need to be made to the indentor. In all other cases, a reference to the indentor will be necessary to confirm that there is budget provision and that full quantity of materials is still required.
(For Cost estimates, in case of OEM/OES cases, para 76.4.2(a) may be referred)

(viii)

(x)

Minor Variation in Specification: Where minor variations in specifications are suggested by the Purchase Section and are acceptable to the indentor and the cost is within the limits stated above, the indent need not be referred again to the Finance or to the Project Manager.

(xi)

Indication of Standard Sizes in Indent: As far as possible, indents should be for standard sizes. The Purchase Section may refer back to the indentor informing the latter of the standard sizes available, before purchasing non-standard sizes.

(xii)

Date of Indent: If the above points are not complied with by the indentor, that indent will not be treated as a firm indent, till all points are clarified. The date on which all the points or irregularities in indent are settled that date will be considered the date of indent. The time of completing of supply will be considered from that date.

(xiii)

Recoupment of Stock Items: In the case of Stock items, the maximum & minimum and re-order levels will be fixed scientifically and according to the instructions issued by Director (Technical) in consultation with Finance keeping in view past consumption, rates, lead time and safety margins etc. Once these levels have been fixed, the Materials Management (Stock) can take recoupment action without any further reference to Finance. However, the Materials Management (Stock) will request the associated Finance to earmark funds before entering into any purchase commitment.

(xiv) The Materials Management (Stock) will intimate its purchase section through recoupment demands. (xv)

requirements to

the

Wherever maximum/minimum and re-order levels have not been fixed in the manner stated above, the indenting section will continue to assess its requirement and to place its indent on the purchase section after obtaining financial concurrence.

(xvi) The review of levels in respect of Stock Items will be carried out once a year. However, if circumstances, such as change in the programme of operation or change in norms, necessitate it, the review will be carried out earlier.

(xvii) Ad-Hoc Purchases: As far as possible, adhoc purchases will be avoided. Items, for which there is repeated emergency purchase, will be added to the list of Stock Items, which would be progressively increased and the list of Non-Stock items correspondingly reduced. (xviii) Budget Allocation: Quarterly statement of budget allocation and utilisation would be forwarded by Associated Finance to the concerned Materials Management / Project Head in respect of Stock and Non-Stock Items. (xix) When a budget is drawn up on a functional basis and gives the break-up of the provision of materials, itemwise indent upto Rs.5,000/-within the budgetary provision, need not be referred to Finance again for concurrence. However, in the absence of budget on functional basis, prior financial concurrence will be obtained by the indentor before placing indent on the purchase section, irrespective of the amount involved. The sanction from the competent authority will accompany all indents. Grouping of Items :

(xx)

Whenever the purchase involves items to be purchased in groups, the same grouping should be intimated alongwith indent by the indentor. (xxi) Separate indent for items independent in nature It is necessary that sieving of items is properly done at the indent stage itself so that items independent in nature are indented separately. (xxii) Materials Code and Consumption Schedule: It will be ensured that material code and likely consumption schedule of Stores and Spares is indicated in the purchase indent failing which the indent will not be accepted. In case of new buys, provision will be made in tender document and supply order to effect that the supplier will send catalogue and manual of relevant item(s) to Inventory Control Cell under intimation to order placing authority within two months from the date of the receipt of supply order (or as desired by the order placing authority depending upon the delivery period). In case of new buys and where permanent codes have not been allotted Regional Corporate Materials and Logistics Organisation (RCMLO) will be consulted who will act as Coordinating Agency of the Project / Region and will interact with Inventory Control Cell to get the permanent code. Where the material code is not communicated by Inventory Control Cell within 7 days from the date of reference to them, temporary code will be allotted by the RCMLO. Indent can be raised by the Indentor with such allotted temporary code with the prior approval of concerned Regional Director. Permanent code number obtained by RCMLO will thereafter be notified to concerned Indentor and Purchase Section. (xxiii) Indent For Stores & Spares Through RCMLO: All Indents for procurement of stores and spares will be routed through RCMLO at Regions / Projects and through CMLO in the Hqrs. who will scrutinize the same with reference to stock in hand, material in pipe line and likely consumption schedule. This exercise should not take more than five days.

CENTRALISATION / DECENTRALISATION OF PURCHASES

11. 11.1

CENTRALISED / DE-CENTRALISED PURCHASES In Drilling Business Group, purchase functions of the following items would be handled as under:Item Barytes CMC Oil Well Cement and Cement additives Bits Indigenous Imported Dehradun Dehradun Dehradun Base Chennai Dehradun Mumbai

Sl. No. 1. 2. 3. 4.

5. 6.

Blow Out Preventors and accrssories Rig (purchase and service contracts) Onland Offshore

Dehradun Mumbai Dehradun Mumbai / Chennai

7. 8. 9.

Spares and assemblies for on-land rigs Spares and assemblies for offshore rigs Well Heads Onland Offshore Imported mud chemicals and mud additives Casings 30 and 20 operations exclusively required for

Dehradun Mumbai Dehradun offshore Mumbai

10. 11.

12.

Others - whether indigenous or imported for on-land Dehradun and off-shore operations (Authority : 1/20/85-MD dt. 12.9.85 as amended)

11.2

Procurement functions in respect of other Business Groups will be handled as per instructions issued from time to time.

11.3

Procurement of Building materials

(MM/56/2010 dated 11.10.2010) i) Various types of building materials can be purchased and supply orders placed by Civil Engineers upto the Powers delegated to them vide para No. EW8 of BDP-2009, subject to following the normal purchase procedure. ii) All such purchase shall be against sanctioned estimates for which administrative approval and expenditure sanction of Competent Authority exist.

(iii) The Engineers would be empowered to purchase all types of building materials for civil works except cement and steel which will be purchased by them only in emergency. They can however, request the Materials Management irrespective of the above powers to make purchase for them in cases where purchase can be deferred and long range advance planning is possible. iv) The word "Building materials" includes all type of materials required to carry out work including all tools, plants implements, etc. (Authority: Item no. EW8 of BDP-2009)

REGISTRATION / EMPANELMENT OF FIRMS

12.1 REGISTRATION OF FIRMS FOR ON LIMITED TENDER BASIS

INDIGENOUS

PURCHASES

12.1.1 For the purpose of sending enquiries for indigenous purchases against limited tenders to be invited in the normal limit of the value of limited tender, registration of firms will be done by Head of Materials Management(TBG) at Regions / Projects / Hqrs keeping in view the requirement of the work centre. Firms willing to register at more than one work centre, will require to get themselves registered with all such work centres. The firm(s) will be registered for each group of items separately for which they will need to send separate application alongwith application fee as indicated in para 12.1.3. The firm(s) will be registered for a period of three years. In Registration Certificate also it will be made clear that the facility for exemption from payment of earnest money / furnishing of bid bond will be available in normal limited tenders only. 12.1.2 The following norms tender-wise basis:will be adopted for registration of firm(s) on

i) Income Tax Clearance Certificate. ii) Sales Tax Registration number both State and Central. iii) 50% of annual turn over of the item(s) / group of item(s) for which the party requires registration, duly certified by a Chartered Accountant. 12.1.3 Subject to provision in para 12.1.7, a non-refundable application fee of Rs.50.00 will be charged from each party for registration for each group of item(s). In addition, a non-refundable registration fee of Rs.50/- for each group of item(s) will also be charged before issuing Registration Certificate if the party concerned meets norms specified in para 12.1.2 above. 12.1.4 While confirming registration number of the firm, it will clearly be advised that they should apply for renewal of registration at least 3 months prior to expiration of the validity of registration. Renewal of registration will be done on the basis of past satisfactory performance. 12.1.5 A non-refundable fee of Rs.50/- will also be charged for renewal of registration of the firm after every three years. 12.1.6 In case a firm already registered with a work centre, wants to get itself registered with other work centre(s) for same item(s) then a fresh verification of Income Tax Clearance, Sales Tax Registration and annual turnover will not be necessary and the party will be registered for the same monetary limit and period upto which its registration with initial work centre is valid.

12.1.7 Firms registered with DGS&D / NSIC will be treated as registered firms of ONGC for the item(s) they are registered with DGS&D / NSIC for sending limited tender enquiries provided a formal request alongwith nonrefundable registration fee of Rs.50.00 for each group of item(s) and proof of such registration from such firms has been received. 12.1.8 No application fee will be charged from such firms. 12.1.9 It will be ensured that enquiries are sent to all firms registered for the item(s) required to be purchased. In case the number of registered firms is large, enquiries may be sent by rotation to ensure healthy competition and allowing all firms an opportunity to compete. 12.1.10 Any case for de-registration of firms shall require approval of an officer at E-7 level (General Manager). (MM/33/2008 dated 29.04.2008) Entire provisions under para 12.2 (i.e. 12.2.1 to 12.2.7) deleted.

PURCHASE METHODS

PURCHASE METHODS
(MM/56/2010 dated 11.10.2010) 13. Purchase will be made through any of the following methods:Disposals (DGS&D)

i) Purchase through Directorate General of Supplies and ii) Open tenders iii) Limited tenders iv) Single tender v) Petty purchases / Hand quotations. vi) Annual Rate Contracts vii) Board of Officers 14. 14.1 PURCHASE THROUGH DGS&D

There are three ways of purchase of materials through the DGS&D:i) By placing indent on DGS&D who on his side invites the tenders from the dealers on his approved list. ii) Through DGS&D Rate / Running Contract: In this case also the indents are to be placed on DGS&D who places order on the firms with whom they have concluded the rate / running contracts, such as petroleum products. iii) Through Rate Contract concluded by the DGS&D: In this case no indent is to be placed on DGS&D but the officer of the Organisation who is appointed by the DGS&D as "Direct Demanding Officer", can place order direct with the firm on Rate Contracts concluded by the DGS&D.

14.2

Full advantage of the DGS&D Rate / Running Contract should be taken as far as possible when such contract exists and the delivery period suits our requirement. No separate tenders need be invited when the delivery period stipulated in the DGS&D Rate / Running Contracts is acceptable. However, where the delivery period of any such contract is not suitable, the Purchase Officer may place a direct supply order on the DGS&D Rate contractors on DGS&D rates or lower rates and where it is not possible to obtain supply of an item either by operating on the DGS&D Rate Contract or by placing a direct supply order on the DGS&D Rate Contract Holders because the delivery period does not suit our requirement, the Purchase Officer may resort to the other methods of purchase outlined in para 13 above even though the items are available against DGS&D Rate/Running Contracts. All other items not covered by the Rate / Running Contracts will be arranged by the Materials Management by inviting tenders.

14.3

15. OPEN TENDERS (MM/33/2008 dated 29.04.2008) 15.1 Except for situations covered under provisions at para 15.3, when the value of the tender is more than Rs. 25.00 lakhs, open tenders will be invited. Open tenders will be advertised through the press. Tender inviting Section shall forward the copy of NIT to Corporate Communications department for publishing NITs in the newspapers in concise format. The number and type of newspapers in which NIT is to be published shall be decided by the Corporate Communication Deptt. Further, the detailed NIT alongwith complete Tender Documents will also be uploaded on ONGCs tender website. 15.2 Open tender bidding documents are to be issued to the bidders on application against prescribed tender fee. At least a months time should be allowed for submission of bids, after the date of publication of advertisement. In emergent cases, however, it may be curtailed to 21 days. Invitation of open tenders will not be necessary in the following cases:i) Purchases against DGS&D Rate Contract; and ii) Where the sources of supplies are known and limited (MM/46/2009 dated 04.11.2009) 15.4 Invitation of Limited Tender, in cases where open tender is to be invited as per value of the tender, should be restricted to exceptional cases, for which approval should be obtained from CPA not below Level-1 executive for cases valuing upto their purchase powers under MP-4(b), after recording valid reasons. However, concerned Director shall have full powers, including for the cases falling under the powers of EPC. Procedure for Limited Tender, as stipulated in para 16 below, should be followed in such cases also. . 15.5 In case, Limited Tenders are proposed to be invited (as against open tender to be invited based on the value of the tender), then the bidders should be identified and short-listed by the indentor, who should also determine and certify that short-listed bidders meet the pre-qualification criteria (technical) advised as per the instructions in vogue. Such short-listing of the bidders and the PQC are to be approved by the competent authority, as per the provisions contained in para-78.1. Thereafter, prequalification criteria (technical) need not be incorporated in the tender..

15.3

16.

LIMITED TENDERS

(MM/63/2011 dated 29.09.2011) 16.1 For purchases of the value of Rs. 25.00 lakhs or less, the tender need not be advertised through the press. In accordance with the instructions issued from time to time, all limited tenders of value above 5.00 lakhs are to be posted on ONGCs tender website, along with the pre-qualification criteria which has been used for selecting the vendors. After framing the pre-qualification criteria, indentor would forward the name of those vendors to the MM Department who meet the pre-qualification criteria. Besides issuance of the tender enquiry to vendors who meet the prequalification criteria, MM Department would also publish the tender enquiry on the website along with the pre-qualification criteria. After publication of the limited tender enquiry on the web site, tender enquiry can also be issued to those vendors who request ONGC for issuance of the tender enquiry and who meet the pre-qualification criteria. Such requests are to be entertained within 10 days of publication of the tender enquiry on the web site. Indenting Department would have to certify that such vendors meet the pre-qualification criteria and based on this certification, enquiry would be issued by MM Department. The names and addresses of vendors to whom the Limited Tender enquiry has been issued should also be posted on the website alongwith the PQC. For limited tenders upto Rs 5 lakhs, the purchase officer may send enquiries to vendors known to ONGC. The enquiries will also be sent to the registered vendors as defined in para 12.1 under the heading Registrat ion of Vendors." In-charge MM at each work center shall make necessary arrangements for registration of vendors as per para 12.1, keeping in view of the requirements of the work center. (MM/46/2009 dated 04.11.2009) (Note deleted) NOTE: Minimum three quotations must be received before tender is finalised. 16.2 (MM /6/2002 dated 23.04.02) Enquiries should be sent to as many firms as possible to ensure competition. In cases where the number of known/registered firms dealing with the materials under purchase is large, enquiries may be limited as given below. In such cases, firms will be sent enquiries in rotation ensuring healthy competition and allowing all firms an opportunity to compete over a period of time. The list of selected suppliers, to whom enquiries have to be sent, will be approved by the competent purchase authority. The minimum number of inquiries to be floated will be as under:-

For tenders upto Rs.1,00,000/For tenders from Rs.1,00,001/-to Rs.5,00,000/For tenders from Rs.5,00,001/- to Rs.10,00,,000/For tenders from Rs.10,00,001 to Rs.25,00,000/(MM/8/2003 dated 02.04.03)

5 enquiries 7 8 10 " "

(MM/33/2008 dated 29.04.2008_ 16.3 For tenders valuing less than or equal to Rs.5 Lakhs, when the number of vendors known to / registered with ONGC is less than the required, the enquiry may be sent to all such vendors after obtaining the approval of an officer one level higher than the Competent Purchase Authority. For tenders valuing above Rs.5 Lakhs, if the number of vendors who meet the PQC are less than the required, approval of an officer one level higher than the sanctioning authority shall be obtained by the indenting department and conveyed to MM department alongwith the indent. However, concerned Director will have full powers to approve such cases, including EPC level cases. 16.4 Procedure for purchases upto Rs 5 lakh:

(MM/33/2008 dated 29.04.2008) The dealing officer will float limited tender enquiries [as per specified format of STR 11], as per para 16.1 & 16.2 above. After receipt of offers within the closing time and date, the offers shall be opened by the nominated opening officers from MM and F&A. After opening, the offers will be handed over to the concerned dealing officer who shall tabulate the data from the offers in the comparative statement, to be prepared within one working day. In all cases where technical evaluation is involved, the duplicate copy of the offers are to be referred within one working day to the indentor for technical comments. The indentor [not below E-1] shall furnish the technical comments immediately, which in no case shall exceed two working days. Subject to provisions of Para 78.3 (f) of this Manual, the approval of a Purchase Authority [not below E-4(MM)] will be obtained before placing order (within 7 working days from opening of bids) as per Annexure A of STR 40, without holding Tender Committee). 17. 17.1 PURCHASE ON SINGLE TENDER Purchase of non-proprietary items

(MM/56/2010 dated 11.10.2010) Purchase of non-proprietary items, on single tender basis, will be resorted to only in the situations of emergencies like flood, fire, civil disturbances, war, cyclones, blow out and operational break down, as per provisions under para 21. Detailed justification for resorting to emergency / operational break down should be recorded at the time of processing the proposal for approval of competent authority as per powers delegated under item No. F5 and ME1 of BDP-2009. (MM/56/2010 dated 11.10.2010) 17.2 Purchase of proprietary items: 17.2.1. An item is Proprietary, if that item (Hardware/equipment/Software/stores) is made/developed and marketed by a particular firm having the exclusive right to manufacture and sell it. Such proprietary Article/ Item can be procured, if the indenter ensures and certifies that only specific make and model are acceptable and no other make and model is acceptable as substitute on technical reasons. Purchase of proprietary items should be made if it is absolutely essential. 17.2.2 Declaration of an item as proprietary will be done with the approval of competent authority, as per powers delegated under item No. R1 and MM2 of BDP2009. However, before submitting the proposal to competent authority for approval, the same will be examined by the In-charges of MM and Finance disciplines of the respective work center. Where there is an alternative to suggest, In-charges of Finance / MM disciplines will advise the indentor to examine and consider the alternative. 17.2.3 . Accordingly, for such purchases of proprietary items from single source, Indenter shall provide a Proprietary Article Certificate (PAC) alongwith indent, as per following format: PROPRIETARY ARTICLE CERTIFICATE (PAC) (i) The required item(s) (i.e.*) is/are manufactured only by M/s................................................................. and no other make is acceptable as substitute for technical reasons. (*Wherever specific model / brand is required, the same should also be specified). (ii) Approval of competent authority, as per item ..** of BDP -2009 (as amended from time to time) has been obtained for purchasing the required item(s) as a proprietary article. (** indicate relevant BDP item). (iii) The In-charges of MM and Finance disciplines of the work centers have examined and cleared the proposal for purchasing the required item(s) as a proprietary article. (Signature) Name and Designation..

Date: Place: [Note: The certificate should be signed by the authority competent to approve the Technical specifications (as per para 78.1-1(i)), in accordance with the value of the purchase]. 17.2.4 Features of the model / version of the products are regularly upgraded by the manufacturers. Similarly, new products and new technologies are being introduced very frequently and the market conditions are likely to vary at different point of time. Therefore, the approval for purchasing an item as proprietary article (PAC) should be obtained separately on each occasion of its purchase. 17.2.5 The purchase of proprietary articles against the Proprietary Article Certificate should be made either from Original Equipment Manufacturer or from Authorised Dealers/Distributors/ Stockists of Original Equipment Manufacturer (and not through a third party). 17.2.6 It must be ensured that such items purchased against PAC are consumed within one year from the date of receipt of the material. 17.3 Purchase of stand-by equipment & accessories and spares from OEM:

17.3.1 Stand by equipment and accessories which form part of the main equipment, and are required for ready replacement and which can not be replaced with other makes on technical grounds can be purchased from OEM or authorized Dealers/Distributors/ Stockists of OEM, as proprietary article without PAC provided Indenter certifies that no other make or model can be used as replacement on technical ground and competent authority approves the same in consultation with MM. In such cases, approval of competent authority as per powers delegated under item No. R1 and MM2 of BDP-2009 shall be obtained. 17.3.2 Spares for vehicles / machineries / tools / equipment, which are manufactured only by particular firms and for which no substitutes are available are to be treated as proprietary articles. No PAC would be necessary for procurement of such items. For carrying out such purchases, approval of competent authority as per powers delegated under item No. R1 and MM2 of BDP-2009, shall be obtained. However, before submitting the proposal to competent authority for approval, the same will be examined by the In-charge of MM discipline of the respective work center. These items are to be procured from Original Equipment Manufacturers / Authorised Dealers/Distributors/ Stockists of Original Equipment Manufacturers, as per procedure laid down in para 17.3.3 below. (MM/51/2010 dated 29.01.2010) 17.3.3 For procurement of spares of proprietary / non-proprietary nature, the following procedure will be followed:i) In the case of proprietary spares, the OEMs should be asked to intimate

details of all their Authorised Dealers/Distributors/ stockists valid for a period of one year from the date of intimation, for supply to India. OEM should also be requested to provide a confirmation that they do not have any other authorised Dealers / Distributors / Stockists other than the ones intimated by them i.e. OEM themselves. The OEM will also be requested to notify to ONGC if any change occurs in Authorised Dealers/Distributors/ stockists during the period of one year. Enquiries should be sent to all the Authorised Dealers/Distributors/ stockists so intimated by OEM, including the OEM. In such types of procurement from OEM/their authorized Dealers/ Distributors/ Stockists etc., even though enquiry would be sent to more than one, but this shall not be categorized as limited tender and various provisions of limited tender like framing of PQC, loading on web site etc. shall not be applicable. The competent purchase authority for OEM purchases as defined in the BDP shall be applicable in such cases also. ii) When the OEM confirms of not having any Authorised Dealers/Distributors/stockists, enquiry may be sent to OEM only. iii) In case OEM does not respond to our request for sending us details of Authorised Dealers/Distributors/ stockists, enquiry may be sent to OEM only.. iv) Besides OEM and their Authorised Dealers/Distributors/ stockists, OES (Original Equipment Supplier), can also be considered as an authorised source of supply, if they supply directly and not further through any other agency (MM/33/2008 dated 29.04.2008) v) For procurement of consumables conforming to standard specifications like API etc. (such as slush pump consumables) and standard spares like bearings, belts and chains etc. of general and detailed specifications, open tenders may be invited as a number of manufacturers produce such items. However, for purchases of these items upto Rs. 25.00 lakhs limited tenders will be invited.

(MM Amendment no. MM/23/2006 dated 28.04.2006) 17.4 Hiring of services of Domain Experts: Domain Experts are individuals with established reputation for specified knowledge and experience in specific areas of Science and Technology. It is neither feasible nor desirable to engage such individuals through tenders. Therefore,

i) ii) iii) 18. 18.1

Each Director shall constitute a Technical Team to identify Domain Experts in relevant disciplines, The identified Domain Experts shall be contacted by the Director for acceptance of retainership followed by empanelment, and The concerned Director may request the services of particular Domain Expert for specific studies and tests.

PETTY PURCHASES/ HAND QUOTATIONS Petty Purchases:

(MM/64/2012 dated 31.01.2012) 18.1. Purchase upto Rs. 10,000.00 (annual cap as per Item No. RG2 of BDP) at a time may be made without formal enquiries or without obtaining hand quotations by User Departments themselves. (Authority: Item RG2 of BDP-2009 18.1.2 A statement of petty purchases made by the User Departments will be sent to the Materials Management concerned at the end of each month so that taking into account the frequency of such purchases these may be considered for inclusion in the list of stock items to avoid further piecemeal purchases. (MM/56/2010 dated 11.10.2010) 18.1.3 No GRV will be raised for petty purchases of consumable items upto Rs. 10,000.00 and such transactions need not be routed through concerned Materials Management. Also no covering supply order need be issued for petty purchases of consumable items upto Rs. Rs. 10,000.00. (Authority: Item RG2 of BDP-2009) GRV shall also not be required for purchase of materials for special events like Seminars, Conferences, training, meetings and sports events provided the items are to be consumed during the same event and need not to be kept in stock . (Ref. Note. 17.16(iv) of Appendix 1 of BDP-2009) 18.1.4 Inspection of Non-Consumable Items : (MM/56/2010 dated 11.10.2010) No inspection through Quality Assurance Department for purchases of non-consumable items upto Rs.10,000.00 will be necessary. But, regularisation of transaction in such cases will be done against submission of pre-receipted indent alongwith complete details of the purchased item (i.e.

copy of bill etc) and acceptance of material by the indentor, to concerned Materials Management (stock). The requirement should be applicable only in cases GRVs are created for value upto Rs. 10,000/-, say for Capital items, for other cases as even GRVs are not created, the item shall not be inventorised at all and booked directly to expenditure head. 18.2 Purchase against Hand Quotations

(MM/64/2012 dated 31.01.2012) 18.2.1 Purchase above Rs. 10,000 but upto Rs. 50,000.00 (annual cap as per Item No. RG2 of BDP) may be made either by User Department or by the Purchase Department by obtaining at least three hand quotations. A list of prominent and reliable local firms will be maintained by all concerned. Hand quotations will be collected on rotation basis whenever there is scope for rotation. A certificate will be given by the Officer making such purchase that hand quotations were obtained on rotation basis. The names and addresses of the firms from whom quotations are obtained will be given in the certificate. Where the number of dealers is limited i.e. less than six, rotation system need not apply. (Authority: Item RG2 of BDP-2009) 18.2.2 User departments will not go for direct purchases over Rs. 50,000.00 at a time barring operational emergencies involving breakdown in operations. In operational emergencies the User Department may make direct purchases as per powers delegated in the Book of Delegated Powers. 18.2.3 Purchase from Undertakings State Emporium / Super Bazar / Govt. Deptt /

Whenever items are available in State Emporium / Super Bazar / State Govt. or Central Govt. Undertakings, purchases are to be made from them only and in those cases, the requirement of obtaining three hand quotations will not be necessary. 19. 19.1 PURCHASE THROUGH ANNUAL RATE CONTRACTS For items required continuously throughout the year in large quantities, it may be advantageous to have a rate contract on lines similar to those of the DGS&D. These contracts will not be for longer than one year and will be finalised after inviting open tenders and after negotiations in consultation with finance. Items for which annual rate contract should be concluded will be specified and this list will be reviewed and additions made every year depending upon the past consumption or on anticipated consumption. Annual rate contracts will not be entered into in the case of items for which the market shows

19.2

marked downward trend. In order to provide against a fall in the market price during the currency of the rate contract, the contract should include the standard Fall Clause as in DGS&D Rate Contracts. (MM/56/2010 dated 11.10.2010) 20. PURCHASE THROUGH BOARD OF OFFICERS

Purchase by a board of Officers will be resorted to only in exceptional circumstances when the materials / services / works are either required urgently to overcome an emergency or because the indentor is not able to give firmed up / detailed specifications (necessitating on the spot decision based on the availability in the market) so that procurement cannot be made under the normal purchase procedure, provided further that:

i) Prior approval of the Competent Purchase Authority, not below L-1 executive, is obtained and furnished alongwith the Purchase Indent, before resorting to purchase through a board of officers. ii) Competent Sanctioning Authority not below Level-1 is empowered to constitute a Board of Officers comprising MM Executives having purchase power for value of Board Purchase and an executive each of equivalent level from indenting Department and Finance. Proceedings of such purchase boards (comprising of executives of competent level) will not need approval of any authority, since spot decisions are required. iii) If for any reason it is not possible to constitute a purchase board with competent officers, the board may be constituted with an officer of the next below rank. However, the reasons should be recorded in writing and the proceedings of such a purchase board should be got ratified by the authority constituting the board. (MM/54/2010 dated 04.06.2010) iv) For carrying out the purchase, the board of officers shall explore the local markets as first priority, before seeking offers from outside the city/town. Further, the board of officers shall obtain as many quotations as possible so as to determine the reasonability of rates. In case the supplier(s) do not agree to give the hand quotations this fact will be recorded by the board of officers in their proceedings. (MM/56/2010 dated 11.10.2010) v) The approval for resorting to purchase through a board of officers shall be accorded after ensuring that the indentor has obtained and rendered a non-availability certificate on STR-6A in respect of the items (other than crockery, cutlery, linen and items of complimentaries) to be purchased.

vi) The board of officers shall obtain as many quotations as possible so as to determine the reasonability of rates. In case the supplier(s) do not agree to give the hand quotations this fact will be recorded by the board of officers in their proceedings. vii) The board of officers will, if necessary, be authorised to make purchases from market on cash basis. viii) Curtain Cloth: Curtain cloth will be purchased from Millshops / Govt. / Emporiums on as and when required basis but by clubbing the requirement. If these are not located nearby, purchase may be made from authorised stockists / dealers. In exceptional cases, the above can be relaxed with reasons to be recorded in writing, by the concerned LevelI executive.

(MM/56/2010 dated 11.10.2010) 21. EMERGENCY PURCHASE

21.1 Emergency purchase (including hiring of services on emergency), directly by user department without reference to Purchase Wing, shall be resorted in the situations of emergencies - like flood, fire, civil disturbances, war, cyclones, blow out, operational break down or likelihood of operational breakdown where it is necessary to restore normalcy of equipment, machinery or vehicles and the urgency does not permit following the normal methods of purchases. 21.2 Detailed justification for resorting to such emergency purchases should be recorded at the time of processing the proposal for approval of competent authority as per powers delegated under item No. F5 and ME1 of BDP-2009. 21.3 Reporting of single tender cases on nomination basis would be done to the concerned Director/EPC/Board, as per prevailing instructions issued from time to time. 21.4 Quantity to be purchased shall be restricted to the minimum essential and the purchase shall be accounted for immediately by submitting Pre-receipted indent alongwith the Inspection Report, Invoice, Delivery Challan and Supply Order, to the Materials Management (Stock) for raising GRV. 21.5 Concerned Indentor / User department shall ensure sufficient stock of critical spares and the materials for which repeated emergency purchases have been made, by following normal methods of purchase through MM department.

TWO BID SYSTEM

22.

TWO BID SYSTEM

(MM/59/2011 dated 27.04.2011) 22.1 Two Bid system will be compulsory for all the tender valuing more than Rs 5 lakhs. Under Two Bid System the bidders will be asked to submit 'Technical' and 'Commercial' bids separately in sealed cover duly superscribed and both the offers placed in one single sealed cover, at a central place. For this purpose, suitable labels in different covers will be provided with the bidding documents. technical bids will be opened first and scrutinised by Tender

22.2

22.3 The Committee. 22.4 22.5

(DELETED AS PER MM/10/2003) (MM/8/2003 dated 02.04.03) After the shortlisting of techno-commercially acceptable bidders, all such bidders will be notified (by fastest mode like fax) of the date of opening of priced bids in public, allowing a period of not exceeding 5 working days, depending upon the urgency of requirement and location of bidders, so as to enable such bidders to participate in tender opening, if they so like. For this purpose, identified fax is to be used, and the fax must be correctly programmed for Tel. number and date / time stamp. This is to be ensured by MM member. The priced bids will be opened by same Tender Opening Officers who are already detailed for opening of tenders and the Tender Committee members of the case, as per provisions of para 52 of this Manual.

(MM/09/2003 dated 21.04.03) 22.6 Price bids, which remain, unopened with ONGC, are to be returned to the concerned bidders within a period of 5 working days of receipt of Performance Guarantee Bond (s) from the successful bidder (s). A clause in this regard should be inserted in the Bidding Documents. (Provision deleted, MM/8/2003 dated 02.04.03)

22.7

SHORT LISTING OF BIDDERS AND FINALISATION OF BID EVALUATION CRITERIA

23. 23.1

Short-listing of bidders:

Subject to provision in para 24, approval of Competent Purchase Authority will be obtained at the following stages:a) Finalisation of Bid Evaluation Criteria. b) Prima-facie shortlisting of bidders before calling them for clarificatory discussions. c) Shortlisting of bidders for price bid opening.

(MM/8/2003 dated 02.04.03) 24. 24.1 Finalisation of Bid Evaluation Criteria (BEC) and floating of tender. The tendering process at the Assets / Basins / Institutes / Hqrs should commence with the availability of budget, followed by detailed indent raised by the indenting department giving specifications and technical BEC along with cost estimates and the financial sanctions. The Competent Purchase Authority will decide the required type of tender to be issued viz (i) Public tender (open tender) (ii) Limited tender (minimum 5 parties) and (iii) Single tender (nomination, based on delegated powers in this regard). The Competent Purchase Authority of the tender (on recommendations of the Tender Committee) will also approve the technical and commercial terms and conditions in the following context: Induction of latest and appropriate technology Competitiveness, Lessons / experiences of the past tenders / contracts. The Competent Purchase Authority will record the reasons for deviating, if any, from the normal tendering procedure spelt out in paras 15 and 16 of this MM Manual. (MM/46/2009 dated 04.11.2009) Concerned Director shall have full powers, including for the cases falling under the powers of EPC. (MM/8/2003 dated 02.04.03) BECs should be firm / standardized. BEC revision must be done only by exception, based on cogent and transparent justification. BEC in general should have a Rejection (both technical and commercial) criteria, and financial Evaluation methodology (including Loading criteria). In all cases, the Bid Evaluation Criteria (BEC) along with the Matrix will be brought before the Competent Purchase Authority for approval . Wherever the last BEC approved by EPC / CPA is proposed to be used for the next tender, there is

i). ii). iii).

no need to obtain repeat approval of the BEC (apart from changes that may be necessary due to fresh guidelines issued by PMC). Such cases falling under the power of EPC will be brought to it for approval after endorsement of the concerned Director. who will consider the factors (i), (ii) & (iii) given above, after due examination and recommendation by the Asset Manager / Basin Manager / Chief of Services / Head of Institutes / Regions Similarly, if there is no change in the mode of tendering earlier approved by EPC, such cases may be approved by Director concerned without referring to EPC again. (MM/40/2009 dated 30.06.2009) Concerned Director(s) will have full powers to approve short-listing of bidders for price bid opening for cases falling within their powers and for EPC level cases. (MM/38/2009 dated 24.04.2009)
24.2

BEC (excluding the standard provisions), once approved by competent purchase authority for a particular tender can be reviewed / modified as a sequel to pre-bid conference. Wherever departure from BEC (excluding the standard provisions) is considered necessary (as a sequel to pre-bid conference), detailed reasons in tabular form are to be given (in the proposal for approval of competent purchase authority) indicating as to why such departure is considered necessary. It will specifically be indicated as to whether ONGC would entail any extra expenditure on account of the proposed changes in BEC and if so, analysis will also need to be given indicating the economic benefit in terms of improved efficiency or otherwise that would accrue to ONGC versus the extra expenditure involved due to modification in BEC. After this no change in BEC will be allowed. Where no pre-bid conference has been convened, BEC in such cases will not be modified under any circumstances. Powers to approve modification / relaxation / departure from approved BEC, as a sequel to pre-bid conference (and not after opening of bids), will rest with Competent Purchase Authority. In this regard, Director concerned shall have full powers including in EPC level cases, provided, such changes are not in conflict with the existing policy/ procedure/ PMC instructions.

24.3 Before invitation of tenders, the technical as well as commercial Bid Evaluation Criteria will be formulated by the tender committee as per provisions vide para 24.1. 24.4 The Bid Evaluation Criteria so finalised will invariably alongwith bidding document to all prospective bidders. be sent

INVITATION OF TENDER

INVITATION OF TENDERS 25 Coordination and bulking of demands for purpose of inviting tenders: When dealing with indents, due attention should be paid to the combination and bulking of demands which will result in economy in purchase. Demands for materials received simultaneously from different indentors should be combined as far as possible while inviting tenders. Due regard should, however, be paid to delivery instructions given by the indentors. Demands which cannot be suitably combined with others for this or any other reasons should be dealt with separately. 26. 26.1 ENQUIRY REGISTER Every individual section dealing with purchases will maintain an enquiry register. A separate page for each enquiry will be allotted in that register. In case of limited enquiries, the name of the firms to whom the enquiries will be addressed will be entered in that register. This will be signed by the concerned officer sending the enquiry. TENDER SETS TO BE KEPT READY INTIMATION TO BE SENT TO PROSPECTIVE BIDDERS AND TENDER

26.2

27.

All concerned sections dealing with open tenders before they send tender invitation to the press for advertisement will ensure that :a) the tender forms are complete in all respects and are ready for sale. About 20 sets are to be kept ready and all are to be serially numbered. b) tender intimations are sent to prospective bidders as soon as the information is received that the tender has been advertised. 28. SUBMISSION OF TENDERS FOR PUBLICATION IN PRESS

(MM/42/2009 dated 08.07.2009) In case of open tenders, for publication of NIT in press, a period of 7 days should be provided from the date it is sent for advertisement to the Corporate Communications. Various milestones of the tender (such as starting date of sale, closing date of sale, last date for receipt of queries, pre-bid conference date, tender closing/opening date) should be specified in the NIT, after taking into account the likely date of publication of the NIT.

29.

TIME TO BE ALLOWED TO TENDERERS TO QUOTE (MM/42/2009 dated 08.07.2009)

29.1

Save in special cases which should be seen and approved by concerned Level-1 executive, the following period will be allowed to bidders for submitting their bids in Open Tenders:
Description of Activity Tenders without Tenders with pre Pre-bid conference conference 21 days 21 days . . . 7 days 8 days bid

(i) Tender sale period. (ii) Receipt of queries from bidders (iii) Scrutinizing the queries and holding pre bid conference (iv) Approval of Pre-bid minutes and issue of the same (v) Submission of offers and opening of technocommercial offers(TBO) TOTAL

8 days

10 days

21 days

31 days

65 days

Note: Only in LSTK contracts, an additional time of 30 days for Process Platforms and 15 days for all other LSTK projects including Well Platforms and Pipe Lines shall be applicable for the activities between Pre -bid conference to TBO (i.e. between activities at iv and v above). 29.2 The above period is to be reckoned from the date of publication of NIT in the news papers.

29.3 Bidding documents should be ready for sale at tender selling centres on the date NIT appears in news papers. (MM/42/2009 dated 08.07.2009) 29.4 Save in special cases which should be seen and approved by concerned Level-1 executive, the following period will be allowed to bidders for submitting their bids in Limited Tenders valuing above Rs 5 lakhs:-

Cases valuing Cases valuing above above Rs. 25 Rs. 25 Lakhs without Description of Activities Lakhs with PBC and cases valuing PBC between Rs.5 lakhs and upto Rs.25 Lakhs (i) Receiving requests for tender 10 days 10 days enquiries from vendors whose name not included in original list (from the date of publication of tender enquiry on the web site). (ii) Verification of such requests by 6 days 6 days indentor and issue of tender enquiries to eligible bidders (including the time required for receiving the same by the bidder). (iii) Receipt of queries from bidders for 7 days . pre-bid conference (iv) Scrutinizing the queries and 8 days . holding pre bid conference (v) Approval of Pre-bid minutes and 8 days . issue of the same (vi) Submission of offers and opening 21 days 10 days of techno-commercial offers(TBO)

TOTAL DAYS

60 days

26 days

Note: Only in LSTK contracts, an additional time of 30 days for Process Platforms and 15 days for all other LSTK projects including Well Platforms and Pipe Lines shall be applicable for the activities between Pre -bid conference to TBO (i.e. between activities at v and vi above). 29.5 For limited tenders valuing upto Rs 5 Lakhs, a period of 21 days shall be given to the bidders for submission of offers, from the date of issue of tender enquiries. 30. VALIDITY PERIOD

(MM/42/2009 dated 08.07.2009) 30.1 The bidders will be asked to keep their offers open as under: i) Limited tenders upto Rs. 25 lakhs ii) Non EPC cases above Rs. 25 lakhs iii)EPC level cases 60 days 90 days 120 days

Note: For any particular case, if longer bid validity period is considered necessary, than the validity period prescribed above, then the longer bid validity period can also be specified in the tender with the approval of CPA (Director concerned for EPC level cases), but due justifications for such longer bid validity required must be given while obtaining the approval. However, after specifying a reasonable time for bid validity period, the same must be adhered to. 30.2 It should be specified in all tender notices under Single Bid System that offers with lesser than the required validity will be straightway ignored. However, under Two Bid System no offer should be rejected on account of shorter validity. In Two Bid System, as soon as technical evaluation is completed, reference should be made to all bidders except those which are technically rejected, for furnishing validity, as required at that stage.

31. NOTICE INVITING QUOTATIONS / TENDERS (NIT) (MM/8/2003 dated 02.04.03) In regard to Notice Inviting Tenders, following points are to be kept in view:(i) The Notice Inviting Tenders (NIT) will clearly indicate the place at, date and time by which tenders will be received and the place, date and the time at which these will be opened.

(MM/47/2009 dated 04.11.2009) (ii) The major qualifying criteria (which are very essential) must be specified clearly in the NIT so that prospective bidders are aware of this requirement at the time of buying bidding documents. The time and venue of the pre-bid conference (if any envisaged) also must be clearly specified in the NIT. Notice Inviting Tender should include an instruction that bids sent by post must be sent under registered cover so as to reach the place well before the closing time and date. All bids received by the notified closing date and time whether through the post or through the tender box, will be registered under the signature of the Tender Receiving Officer. Notice Inviting Tenders may be transmitted by fax also, wherever required.

(ii)

(iii)

(iv)

(v)

(vi)

Notice Inviting Quotations / Tenders will indicate the date and time of the commencement of the sale of the tender.

(vii)

Bidding documents depending upon value notified from time to time, will be made available for sale on specified date and time at (1)Dehra Dun (2)Calcutta (3)Mumbai (4) New Delhi (5) Chennai. NUMBER OF COPIES OF OFFERS TO BE CALLED FROM BIDDERS Copies of bids will be called as under: (i) Where in-house evaluation is involved (ii) Where bid evaluation is done by outside agency. Copies in triplicate Five Copies

32.

33. 33.1

VARIATION IN QUANTITY AFTER INVITATION OF TENDER Provisions will be made in all tender conditions for procurement of goods that ONGC is entitled to increase or decrease the quantities amongst any / all the items of the tender by not more than 20% (twenty percent). However, in case of procurement of goods under Two bid system, any variations upto + 20% of the tendered quantity would be permissible only if it is decided before price bid opening. No change in quantity would therefore be permissible in the quantities that are proposed to be purchased after price bids are opened. In case there is an increase in the quantity beyond 20%, it would be essential to invite fresh tenders covering the total revised quantity so as to get the advantage of bulk discount in prices. In case the reduction in quantities is more than 20%,confirmation from L1 bidder would be obtained to supply at the quoted rates. On getting confirmation, order for the reduced quantity will be placed. If L-1 bidder does not agree, then tender would be re-invited. In case of tenders like those of pipes for offshore where large quantity is involved, even lower percentage may be specified in the tender with approval of Regional Director concerned. SALE OF BIDDING DOCUMENTS TO FIRMS WITH WHOM BUSINESS HAS BEEN BANNED / SUSPENDED. The bidding documents will be sold on receipt of application(s) alongwith requisite tender fee. No bidding document will however be sold to the party(ies) to whom no further business is to be given or dealings with whom have been banned / suspended.

33.2

33.3

33.4

34.

35.

TENDER FEE

(MM/8/2003 dated 02.04.03) 35.1 All open tenders will be issued after making necessary entries in the tender register against payment of prescribed tender fee. The tender fee will be acceptable in the form of crossed "Payee Account only" Bank Draft / Cashier's Cheque / Bankers Cheque drawn by Bank and valid for 180 days from the date of issue of the same or in the form of Indian Postal Orders payable to the ONGC. Subject to provisions laid down vide para 36, the IPOs / Bank Drafts / Cashiers Cheques / Bankers Cheques will be deposited and accounted for at the station where they are received and credited in the accounts there itself. The Purchase Formation concerned from where bidding documents have been received for sale will, however be furnished with full details of parties to whom the bidding documents have been sold and the number of bidding documents not sold, which will be returned. PURCHASE OF BIDDING DOCUMENTS BY AGENTS IN INDIA In respect of imports, the Agents in India, duly authorised by their foreign principals, will be allowed to purchase bidding documents in Indian currency through Bank Draft drawn in favour of ONGC provided such foreign principal / supplier remit the cost of bidding documents in foreign currency equivalent to Indian Rupees through Bank draft / Cashiers Cheque / Bankers cheque in favour of ONGC alongwith their offer before due date. The Bank Draft in Indian Currency received by tender (selling) agencies from authorised agents in India will be sent to the concerned FAO under intimation to Purchase Authority concerned. Demand Drafts received from Indian Agents for the purchase of bidding documents will not be encashed immediately. On receipt of requisite tender fee in foreign currency the Bank Draft in Indian currency received from authorised agent in India will be returned by concerned FAO under intimation to concerned Purchase Authority. Care should be taken by concerned FAO to ensure that demand drafts are encashed within validity period, if no draft, in foreign currency is received. 37. CANCELLATION OF TENDER - REFUND OF TENDER FEE In the event, a particular tender is cancelled the tender fee will be refunded to the concerned bidder. (MM/68/2012 dated 05.10.2012) 38. EXEMPTION FROM PAYMENT OF TENDER FEE Micro and Small Enterprises (MSEs) registered with District Industry Centers or Khadi and Village Industries Commission or Khadi and Village Industries

35.2

36.

Board or Coir Board or National Small Industries Corporation or Directorate of Handicrafts and Handloom or any other body specified by Ministry of MSME will be exempted from payment of tender fee irrespective of the monetary limit mentioned in their registration certificate provided they furnish evidence that they are registered for the items they intend to quote against ONGC tenders. The Govt. Deptts. will also be exempted from the payment of tender fee. (MM/33/2008 dated 29.04.2008) 39. INTIMATION REGARDING INVITATION OF TENDER TO TRADE COMMISSIONS / CONSULATES / REPRESENTATIVES OF FOREIGN GOVTS. To give wide publicity, intimation regarding invitation of tenders which are invited on ICB / Limited International Bidding (LIB) basis should be sent to Trade Commissions / Consulate / Representative in India of foreign Governments. The intimation letter besides containing the brief details about the tender should also inform them that the NIT alongwith the complete bidding documents are uploaded on the ONGCs tender website 40. TENDER FEE

40.1 The following tender fees will be charged from the bidders for sale of bidding documents for procurement of items not specific to the requirement of Oil Industry:(SP/2/99 dated 14.05.99 & MM/08/03 dated 02.04.03)
Sl. No. Estimated Value of tender Indigenous Purchase (in Rupees) Import Purchase

Tender Fee for domestic bidders (Rs.) i) For tender exceeding Rs.25.00 lakhs but not exceeding Rs.50 lakhs For tender exceeding Rs.50.00 lakhs but not exceeding Rs.1.00 crore For tender exceeding Rs. 1.00 crore but not exceeding Rs.2.00 crores For tender exceeding Rs. 2.00 crores but not exceeding Rs.5.00 crores For tender exceeding 200.00 2250.00

Tender fee for foreign bidders (US$) 50.00

ii)

500.00

4500.00

100.00

iii)

500.00

9000.00

200.00

iv)

1000.00

22500.00

500.00

v)

1000.00

45,000.00

1000.00

Rs. 5.00 crores

40.2

In the case of high value tenders where technical drawing / specifications run into several pages, the cost will be fixed by the Head of Materials Management concerned keeping in view the expenditure incurred thereon and the labour involved. With a view to eliminate the bidding documents will be account of distribution thereof concerned. The bidders will be either in original or photocopy opening. offers without requisite tender fee, the serially machine numbered and proper maintained by the purchase section required to return the bidding documents thereof for facilitating linking after tender

40.3

41.

OFFER WITHOUT HAVING PRESCRIBED BIDDING DOCUMENTS OF ONGC The condition "Offer sent without having the prescribed bidding document of ONGC and without complying with the terms and conditions of bidding document for submitting the offer, will be ignored straightway" will be inserted in all tender notices. (MM/68/2012 dated 05.10.2012)

42.

SALE OF BIDDING DOCUMENT On receipt of request, bidding document will be sold against requisite tender fee or issued free of cost to registered parties after ensuring the requirement of para 38, by Tender Selling Centre. The bidding document will be issued by Tender Selling Centre under a forwarding letter indicating therein the following details:(i) Tender No. (ii) Name of the bidder and address (iii) Demand Draft / Bankers cheque / cashiers cheque/ IPO number, date, value and payable at (iv) Whether the bidder is Govt. Deptt./ MSE registered with District Industry Centers or Khadi and Village Industries Commission or Khadi and Village Industries Board or Coir Board or National Small Industries Corporation or Directorate of Handicrafts and Handloom or any other body specified by Ministry of MSME

(Signature) Name of the Issuing Officer Designation Address of Issuing Centre

The bidder must submit this forwarding letter alongwith the offer (alongwith unpriced bid in case of Two Bid System). In case the Bidding Document has been received free of cost, bidder must also submit the forwarding letter alongwith the valid registration certificate containing the following:(a) Registration Authority (b) Item for which Registered (c) Monetary limit upto which Registered (d) Validity of Registration 43. ISSUE OF BIDDING DOCUMENTS

43.1 The entries of the issue of bidding documents will be made in the register to be maintained by section concerned for this purpose. One page should be attached for each tender advertisement. Following columns should be made in the register:Sl. No. Name of the firm to whom bidding document issued Postal order/ Bank Draft/ Bankers cheque/Cashi ers cheque Value of Postal order/Bank draft/ Bankers cheque/Ca shiers cheque Date of receipt of application for bidding document Date of issue Signature

Asstt

Asstt. MM officer Materials Managem ent officer

1.

2.

3.

4.

5.

6.

7.

8.

Signature of Firms representat ive (if by hand)

Sl. No. Allotted to each tender

No. Of samples received alongwith offer

Signature of Opening Officers

Tender

Special Remarks of Tender Opening Officer, if any

Signature of Firms representativ e(s) who attended tender opening

Asstt. MM FAO/Asst. Officer/MM FAO Officer

10

11

12

13

14

15

1.

Total No. of a) b) c) Envelopes received for opening from Tender Receiving Officer Samples received from Tender Receiving Officer. Samples received alongwith offers.

2.

Total No. of: a) b) c) Tenders handed over to the Asstt./Officer concerned Samples handed over to the Asstt./Officer concerned Letter of Authority of the firm(s). 1) 2) Tender Opening Officers' Signature Signature of receiving Asstt./Officer

43.2

This register should be presented by the Section concerned at the time of opening of bid. Both the Officers opening the tenders will sign in column 12 and 13 of the above register against the names of firms whose bids have been received. ISSUE OF BIDDING DOCUMENTS AFTER CLOSING DATE

44.

(MM/34/2008 dated 28.05.2008) 44.1 After the closing date and time is over, no bidding documents will be issued. However, if there is an unscheduled holiday on the date on which the tender sale is due to end, then the tender sale date will be extended by one day (i.e. upto the next working day). Thereafter, tender selling section will prepare a statement in the prescribed proforma showing the following columns: Tender No. Name of the firm to whom bidding document issued Postal Order/Bank Draft/Bankers Cheque/Cashier s Cheque No. and date & amount Date on which requisition for bidding document is received Date issue of Remarks

1 44.2

One copy of the above statement is to be sent to the Accounts Section alongwith the Postal Orders / Bank Drafts / Bankers Cheque / Cashiers Cheque for encashment. RECEIPT OF TENDERS The tenders will be received as under: i) Directly being put in Tender Box by bidders. ii) Received by ordinary / regd. dak by Central Diary Section. iii) Handed over personally to Central Diary Section by bidder(s) it being it not possible for them to put in tender box due to volume of the documents.

45. 45.1

(MM/67/2012 dated 07.06.2012) 45.2 The Receipt and Despatch (Central Diary) Section will maintain separate register for the bids received by them through post office / handed over to them personally by tenderers due to their voluminous size. Tender samples which cannot be dropped in Tender Box due to their voluminous size will also be received by Incharge Diary Section from the bidders. All Tenders and tender samples received by Diary Section will be recorded in this register. The Diary Section will put date and time of the receipt on each envelope of tender / sample and hand over the same on day to day basis to the Tender Receiving Officer before 14.00 hrs. (1600 hrs in Mumbai Region, including Uran and Hazira) after obtaining his initials in acknowledgement of having received the same. In no circumstances the cover of tenders will be opened or destroyed by Diary Section. All late tenders on receipt will be handed over to the Section concerned on day to day basis for necessary action as laid down vide para 73. TENDER BOX A Tender Box of the following dimension with suitable provision on its top for dropping tenders in it will be placed in Tender Opening Room / Office verandah. i) Length ii) Height iii) Width 46.2 92 cms. 123 cms. 46 cms.

46. 46.1

The Tender Box will always be kept locked and sealed. Keys of Tender Box will be under the custody of Tender Receiving Officer. NOMINATION OF TENDER RECEIVING / OPENING OFFICER(S) An Officer of Materials Management not below E-0 level will be nominated for receipt of tenders each month. In addition, one officer not below E-0 level each from Materials Management and Finance and Accounts Deptt. will also be nominated for opening of tenders each month. Arrangements will also be made for nominating officers not below E-0 level as Leave Reserve for above purpose. The names of the officers selected for a particular month for receipt and opening of tenders will be communicated to all concerned alongwith tender opening programme on the first day of the month, if not earlier. ACCOUNTING OF TENDERS Each Purchase Centre will have an almirah with 31 pigeon holes. Each pigeon hole will be for each date. Key of this almirah will be under the custody of Tender Receiving Officer.

47. 47.1

47.2

48. 48.1

(MM/67/2012 dated 07.06.2012) 48.2 The Tender Receiving Officer will take out at 14.00 hrs. (1600 hrs in Mumbai Region, including Uran and Hazira) on each working day all tenders / samples from Tender Box and will put dated initials on each envelope. Thereafter, the lock of Tender Box will be sealed. All these envelopes as well as envelopes received from Diary Section containing bidding documents / samples will be placed by him in their respective date bins of the Almirah provided for this purpose.

48.3 The Tender Receiving Officer will maintain numerical account of the tenders / samples taken from Tender Box as well as of the tenders / samples received by him from Diary Section on the following format:
Opening Balance
Tenders Sampl es

No. Of tender /samples received


Through Section No. Of Tenders Diary Sample s Tender Box No. Of Tenders Sample s Total No. Of tenders Sam ples

Issued
Tenders Sample s

Closing balance
Tenders Sam ples

48.4

In addition, the Tender Receiving Officer will note down full particulars of each tender / sample received by him every day in a register to be maintained for this purpose. In this register, there will be one or more pages allotted for each tender notice and this will have the undermentioned columns:Tender No......... Due date of Opening...... Source of receipt Diary Section Tender Box 5 6 Initials

Sl. No

Name of No. Of envelopes Dt. Of receipt the party received Tender Sample s s 2 3 4

1 48.5

The tenders / samples received from different sources on different dates shall be entered in the above register. On the due date of opening, a line will be drawn at the end indicating thereby the total number of tenders / samples received against the tender notice in question. In the cases where no tender / sample has been received on a particular date, the Tender Receiving Officer will record the fact of non-receipt of any tender on the due date. The late tenders / samples received by Tender Receiving Officer from Tender Box shall also be entered in the above register after the closing entry of the timely received tenders / samples. The Tender Opening Officers will put their signatures with date and time at the end of last entry of timely received tenders / samples in the Tender Receipt Register in token of their having taken over the tenders mentioned

48.6

therein on the due date of opening. Late tenders / samples will be handed over by Tender Receiving Officer to the concerned Materials Management Officer after obtaining acknowledgement. 49. 49.1 OPENING OF TENDERS The tenders should only be opened on limited days to save time. Every section, while issuing enquiry, will ensure that only the following dates of the month are given as Due Dates 3,5,7, 9,11,13,15,17,19, 21,23,25, 27,29 and 31. If any due date happens to be Sunday or Gazetted Holiday then next due date may be fixed. In case of emergency, if it is not possible to adhere to these due dates, then other dates may be given but such cases should be reduced to minimum. The Head of Materials Management of concerned Business Group may, however, authorise opening of tenders on all working days, if situation so warrants.

(MM/67/2012 dated 07.06.2012) 49.2 Tenders are to be opened at 15.00 Hrs. (1700 hrs in Mumbai Region, including Uran and Hazira) on the day they are due to be opened.

49.3 The Tenders / bids will be opened by a team of two officers as per para 47. 50. NUMBERING OF TENDERS / DISCLOSURE OF PRICES / READING OUT THE RATES Numbering of Tenders 50.1 The Tender Opening Officers will encircle the rates and terms and conditions and put their initials. If there is any cutting, overwriting or erasing that will also be stated and signed by both the officers. Total number of sheets in the bid will be mentioned on the first sheet of bid and all the sheets should be initialled by both the officers opening the bid and the bid will be given Serial number. As for example, if 7 bids have been received against one particular enquiry, then bids should be numbered as 1/7, 2/7 and so on. The bids which are received by post after due date should be marked 'Late' tender with No. 8/7 and so on. The samples received along with the tenders should also be signed by both the officers. If it is not possible to sign on the samples then those samples should be sealed with the label mentioning the name of the firm. Name of the firm should invariably be recorded on the sample, if not given already. All envelopes are also to be retained on the record and these are to be initialled by both the officers authorised to open the tenders.

50.2

(MM/50/2009 dated 21.12.2009) 50.3 The Section concerned whose tender is due on that particular date will be present at the time of opening of the tender with the tender register. Both

Tender Opening Officers will sign the register against the name of the firms whose bids have been received. The summary/remark in respect of the offers received, as para 43.1 above, shall be recorded by the tender opening officers, immediately following the entries made for the individual offers. Thereafter, the tender opening officers should make sure that no space/pages are left blank between the last entry of particular tender (which has been opening by them) and the starting page of the next tender (appearing in the register), by crossing out the blank space/pages with the remark space/page cancelled and should also initial on these pages.

50.4

Reading out the rates: In the public opening, only the total prices or group-wise prices, if sought as per tender should be read out in addition to delivery schedule and major terms and conditions. Offer should not, repeat not, be circulated amongst the bidders' representatives.

51.

DISCLOSURE OF PRICES Bids are to be treated as confidential documents and save at the time of public opening of tenders, prices quoted are not to be disclosed to any member of the staff without permission of the General Manager(MM) / DGM(MM) / Head of the Project / Head of Business Group.

52.

OPENING OF TENDERS IN PUBLIC (MM/55/2010 dated 05.07.2010) Unless good and sufficient reasons exist (which must be recorded on the file) all bids, including bids for service contracts, estimated to cost Rs.1.00 Lakh and above, must as a rule be opened in the presence of bidders / authorized representatives of bidders.

52.1

. (MM/33/2008 dated 29.04.2008 & MM/49/2009 dated 02.12.2009) 52.2 The matrix for technical / techno-commercial / commercial must be worked out (as a part of the BEC) in advance (of opening of technical bids) by the Tender Committee (in cases exceeding Rs 25 lakhs) and approved by the Competent Purchase authority specified in Para 24 along with BEC. The matrix in which the bidders will be required to fill up the bid data will be designed objectively to cover all techno-commercial points of the tender required for evaluation and will be kept as a part of tender documents, for the bidders to fill up the same and submit alongwith offers (to facilitate ONGC filling up of matrix during bid-opening as otherwise, the opening officers will have to search the voluminous offers to locate the relevant bid details for tabulation). Bidders should be asked to indicate their compliance by clearly mentioning as Confirmed or Not Confirmed, to avoid any misinterpretation.

Format for Bid matrix should also have provisions for indicating the reference/location (page No. / Annexure etc.) of the respective detail(s)/document(s) enclosed in the bid, so as to easily locate the same for tabulation. 52.3 On opening, the data from the technical / techno-commercial / commercial bids are to be immediately tabulated and signed by the Tender Opening Officers, in presence of the interested bidders. Respective dealing officers/dealing assistants shall assist the tender opening officers in tabulating the details in the matrix. Immediately after tender opening, offers will be sent for technical comments and comparative statement will be prepared as per provisions. Price bids are to be opened only for the qualified bidders and data are to be tabulated and signed by the Tender Opening Officers immediately, in presence of the interested bidders. Respective dealing officers/dealing assistants shall assist the tender opening officers in tabulating the details in the matrix. It should be clarified in the Matrix relating to the priced bid opening that priced data reflected in the matrix will be as quoted by the bidders and subject to necessary correction based on detailed scrutiny of the priced bids, evaluation for loading criteria etc. The Comparative Statement vetted by Finance will be the basis for taking the decision for placement of purchase order / award of contract. The officers opening the tenders should verify that only bidders / authorised representatives of bidders who have actually submitted the bids are present. Unauthorised representatives (or representatives of firms who have not submitted the bid) should not be allowed to be present.

52.4

52.5

(MM/32/2008 dated 25.04.2008 & MM/51/2010 dated 29.01.2010) 53 E-MAIL / FAX / TELEX / TELEGRAPHIC OFFERS: TELEX / FAX / Telegraphic Offers will not be accepted. However, in OEM purchases from single source or where source of supply is pre-fixed, Telex / Fax / Telegraphic / E-Mail offers may be considered provided such offers are followed by confirmatory copy within 15 days of the date of receipt of offer. However, in case of purchase from OEM or their authorized Dealers/Distributors/ Stockists on single tender basis, if they do not submit confirmatory copies even after persuasion then such Email/Telex/Fax/Telegraphic offers may be considered with the approval of CPA under exceptional circumstances. For EPC level cases Director concerned shall have full power to approve consideration of such Email/Telex/Fax/Telegraphic offers. 54. 54.1 CANCELLATION / RE-INVITATION OF TENDERS Cancellation of tenders:

54.1.1 A tender shall be deemed to have been cancelled to the extent a demand is withdrawn. Advice regarding the cancellation action shall be conveyed to the indentor. (SP/4/99 dated 14.10.99) 54.1.2 Cancellation of tenders for any other reason, to be recorded in writing, shall require the approval of the purchase authority one step higher than the competent purchase authority. However, in all such cases the Director of concerned Business Group with the concurrence of Director (Finance) will be final authority.

54.2

Re-invitation of tenders

54.2.1 In the event of re-invitation of bids whether on a limited or open tender basis the Competent Purchase Authority will obtain in advance the decision of the Purchase Authority one step higher. In respect of proposals falling under the purview of Executive Purchase Committee, the decision for retendering will be taken by concerned Director in consultation with Chairman-cum-Managing Director. 54.2.2 Such re-invitation of bids, on a limited basis, will be from all the bidders who quoted against the original tender. 54.2.3 Similarly, in the case of open tenders intimation regarding re-invitation of tenders will be sent to all the bidders who quoted against the original tender. 54.2.4 Reasons for re-invitation of tenders in all such cases will be recorded. (MM/33/2008 dated 29.04.2008) 55. EXTENSION OF TENDER CLOSING / OPENING DATE Sale of bid documents should close at least 3-4 weeks before the date of opening of bids and both the dates should be specified in the NITs / Bid Documents. Extension of date of closing / opening of bids should be avoided as far as possible. However, where it is in-escapable (valid and justified reasons for such extension should be recorded in writing), the competent purchase authority will be empowered for extension of date of closing / opening of bids, maximum upto two weeks. Officer one level above the competent purchase authority will approve any extension beyond two weeks. However, on the basis of TC recommendations, CPA shall have powers to approve extension of date of closing / opening of bids upto 4 weeks, as a consequence of interactions with prospective bidders during pre-bid conference. For EPC level cases, concerned Director will have full powers to approve extension of closing / opening date of bids.

Requests for extension of tender closing / opening date, received on the date specified for the same, shall NOT be considered. No tender document will be sold during the extension period.

CLAUSES IN TENDERS / SUPPLY ORDERS

56. 56.1

CLAUSES IN TENDERS / SUPPLY ORDERS Warranty and Guarantee

56.1.1 In the case of equipment, the warranty for a period of 18 months from the date of shipment or 12 months from the date of commissioning of the equipment, whichever is earlier, will be obtained. The warranty period in case of turnkey projects will be obtained for 12 months from the date of satisfactory commissioning and handing over of the complete project to the ONGC. The Bank Guarantee for warranty period in the case of equipment will not be necessary. The guarantee for warranty in the case of Turnkey Project contracts will be essential, insisted upon and failure to comply with this will be a rejection criteria of the BEC. 56.1.2. Warranty Clause The manufacturer warrants that every thing to be furnished hereunder shall be free from all defects and faults in material workmanship and manufacture and shall be of the highest grade and consistent with the established and generally accepted standards of the material of the type ordered and in full conformity with the specifications, drawings or samples, if any, and operable, operate properly. This warranty shall survive inspection of the payment for and acceptance of the goods, but shall expire twelve months after their arrival at the destination. (MM/66/2012 dated 03.05.2012) 56.2 Penalty / Liquidated Damages / Cancellation Clause No liquidated damages clause will be inserted in contracts / supply orders for purchases upto Rs.1.00 lakh. Supply order as per STR-40 will be placed for purchases upto Rs. 1.00 lakhs which provides for cancellation clause. 56.3. Liquidated Damages / Failure and Termination Clause (MM/66/2012 dated 03.05.2012) 56.3.1 Procurement of goods Time and date of delivery shall be essence of the contract. If the contractor / supplier fails to deliver the stores or any installment thereof within the period fixed for such delivery in the schedule or at any time repudiates the contract before the expiry of such period, the purchaser may, without prejudice to any other right or remedy, available to it under contract or law recover damages for breach of the contract as under:-

a)

Recover from the Contractor / Supplier as agreed liquidated damages and not by way of penalty, a sum equivalent to % (half percent) of contract price of the whole unit (1% of total value of particular item in case of casing pipes) per week for such delay or part thereof (this is an agreed, genuine pre-estimate of damages duly agreed by the parties) which the contractor has failed to deliver within the period fixed for delivery in the schedule, where delivery thereof is accepted after expiry of the aforesaid period. It may be noted that such recovery of liquidated damages may be upto 5 % of the contract /supply order price of whole unit of materials (10% of the value of particular item in case of casing pipes) which the contractor / supplier has failed to deliver within the period fixed for delivery in the schedule; Or Cancel the contract / supply order or a portion thereof by serving prior notice to the contractor / supplier. It may further be noted that clause (a) above provides for recovery of liquidated damages (and not by way of penalty) on the cost of contract / supply order price of delayed supplies (whole unit) at the rate of % (half percent) of the contract / supply order price of whole unit (1% of total value of particular item in case of casing pipes) per week for such delay or part thereof upto a ceiling of 5% of contract / supply order price of delayed supplies (whole unit) (10% of the value of particular item in case of casing pipes). Liquidated damages for delay in supplies thus accrued will be recovered by the paying authorities of the purchaser specified in the supply order, from the bill for payment of the cost of materials submitted by the contractor / supplier or his foreign principal in accordance with the terms of supply order / contract or otherwise. Notwithstanding anything stated in the clause (a) and (b) above, equipment and materials will be deemed to have been delivered only when all its components and parts are also delivered. If certain components are not delivered in time, the equipment and material will be considered as delayed until such time all the missing parts are also delivered. LEVY OF LIQUIDATED DAMAGES DUE TO DELAY IN SUPPLIES) : LD will be imposed on the total value of the order unless 75% of the value ordered is supplied within the stipulated delivery period. Where 75% of the value ordered has been supplied within stipulated delivery period, LD will be imposed on the order value of delayed supply(ies). However, where in judgment of ONGC, the supply of partial quantity does not fulfill the operating need, LD will be imposed on full value of the supply order. However, in cases involving supply to multiple consignees/port consignees, Work Centre to frame a suitable clause for levy of L/D on consignee/port consignee wise basis. The due dates for supply of each item/quantities on consignee/ port consignee wise should be specified and LD should be levied for delay in supplies beyond the dates specified for respective items/ quantities on consignee/port wise value.

(b)

(c)

(d)

(e) Liquidated damages will be calculated on the basis of contract/ supply order price of services/materials excluding duties and taxes, where such duties/taxes have been shown separately in contract/supply order. 56.3.2 Service Contracts DELAY IN MOBILISATION AND LIQUIDATED DAMAGES (a) CONTRACTOR shall mobilize and deploy the required manpower and the complete equipment so as to commence the services at the specified site (s) within a maximum of .days from the date of Fax order / LOA / NOA (Work center should specify the period depending upon nature of the services). If the CONTRACTOR fails to mobilize and deploy the required manpower / equipment and / or fails to commence the services within the period specified in sub clause (a) above, ONGC shall have, without prejudice to any other right or remedy in the law or contract including sub clause (c) below, the right to terminate the contract. If the contractor is unable to mobilize / deploy and commence the services within the period specified in sub clause (a) above, it may request ONGC for extension of the time with unconditionally agreeing for levy and recovery of LD. Upon receipt of such a request, ONGC may at its discretion, extend the period of mobilization and shall recover from the contractor, as an ascertained and agreed Liquidated Damages, a sum equivalent to 1/2 % of annual contract value, for each week of delay or part thereof, subject to a maximum of 10% of the annual contract value. The parties agree that the sum specified above is not a penalty but a genuine pre-estimate of the loss/damage which will be suffered by ONGC on account of delay on the part of the CONTRACTOR and the said amount will be payable without proof of actual loss or damage caused by such delay. LD will be calculated on the basis of annual contract value excluding duties and taxes, where such duties/taxes have been shown separately in the contract.

(b)

(c)

(d)

(e)

56.3.3 Charter Hire of Rigs (Offshore) LIQUIDATED DAMAGES The Contractor shall deploy the Drilling Unit at the designated first drilling location nominated by Operator, anywhere in Indian waters to commence operation within (180 days in case of Indian parties and 120 days in case of foreign parties for Offshore charter hire services from the date of issue of unconditional firm telex order but in no case the Drilling Unit shall be deployed under this contract without completion of the well/wells-inprogress under ONGC's Contract No............ In the event period of

completion of well/wells-in-progress exceeds such 180 days, (in case of Indian contractors)/ 120 days (in case of foreign contractors), then the Drilling Unit shall be deployed after completion of well/wells-in-progress within the time limit to be specified by Operator. ONGC reserves the right to extend the date of mobilisation until weather is cleared for deployment of unit to new location, if mobilisation period of 180/120 days as may be applicable falls between the monsoon period (from 16th May to 15th October both days inclusive), without imposition of any liquidated damages. If the Contractor fails to deploy the Drilling Unit within aforesaid period, the Operator as its sole remedy can recover from contractor as ascertained and agreed Liquidated Damages and not by way of penalty a sum equivalent to 1/2 % of annual contract value (i.e. Effective Day Rate based on which bids were evaluated x 365 days) for each week of delay or part thereof subject to maximum of 10%. Operator shall have at any time but before Commencement Date, the right to terminate the Contract in the event Contractor fails to deploy the Drilling Unit at the first drilling location within aforesaid period, without prejudice to any other clauses including LD Clause. The parties agree that this is a genuine pre-estimate of the loss/damage which will be suffered on account of delay/breach on the part of the contractor and the said amount will be payable on demand, without there being any proof of the actual loss or damages caused by such delay/breach. LD will be calculated on the basis of annual contract value (i.e. Effective Day Rate based on which bids were evaluated x 365 days) excluding duties and taxes, where such duties/taxes have been shown separately in the contract. Note: In case of charter hire of onshore rigs, maximum limit of LD shall be as per Charter Hire of Offshore Rigs. 56.3.4 LSTK Contracts: Time is the essence of the contract. If the Contractor fails to complete the entire work by the scheduled completion date, ONGC may without prejudice to any other right or remedy available to it as under the Contract or Law: i) Recover from the Contractor as ascertained and agreed Liquidated Damages and not by way of penalty, sum equivalent to % of the Total Contract Price for each week of delay occurred or part thereof beyond the scheduled completion date subject to a maximum of 10% of the Total Contract Price even though ONGC may accept delay in Completion of work after the expiry of the Scheduled completion date. Rate of LD applicable for the monsoon period (from 16th May to 15th October both days inclusive) in case of LSTK contracts in Western Offshore shall be % of the total Contract Price for each week of delay occurred or part thereof. However, if contractor has completed certain part of the work within the scheduled completion date and the said apart is ready for use and is accepted by ONGC pursuant to clause No (relevant clause no. as above, to be indicated by Work Center), then in that event, Liquidated Damages shall be leviable only on the Contract

Price for the balance work remaining incomplete as on the scheduled date of completion. AND/OR ii) Terminate the Contract or a portion or part of the Work thereof. ONGC shall give 14 days notice to the contractor of its intention to terminate the Contract and shall so terminate the contract unless during the 14 days notice period, the Contractor initiates remedial action acceptable to ONGC. In case the Contractor is unable to complete the work by the schedule completion date, it may request ONGC before expiry of the scheduled completion date, to allow further time for performance of the contract indicating its willingness to pay the LD amount as agreed at (i) above. ONGC may at its discretion allow further time as requested by the Contractor with or without levy of LD. The parties agree that the amount of LD provided herein is a genuine preestimate of the loss/damage which will be suffered on account of delay on the part of the Contractor and the said amount shall be payable on demand without there being any proof of the actual loss or damage caused by such delay/breach. Calculation and mode of recovery of LD LD will be calculated on the basis of contract price excluding duties and taxes, where such duties/taxes have been shown separately in the contract. The amount towards Liquidated Damages shall become leviable from the original completion date as per contract or from the expiry of the extension, if any, given by ONGC without levy of LD. Applicable LD as on date shall be recovered progressively from balance due payment on pro-rata basis. ONGC may without prejudice to its right to effect recovery by any other method, deduct the amount of Liquidated Damages from any money belonging to the Contractor in its hand (which includes ONGCs right to claim such amount against Contractors Bank Guarantee) or which may become due to the Contractor. Any such recovery of Liquidated Damages shall not in any way relieve the Contractor from any of its obligations to complete the Works or from any other obligation and liabilities under the Contract. Bank Guarantee toward Liquidated Damages (Applicable in LSTK Contracts). In case of delay in completion of the Project, if the Contractor so desires, then ONGC may accept a Bank Guarantee from the Contractor towards the maximum amount of LD applicable as per Clause No (relevant clause number to be indicated by Work Center). The unconditional and irrevocable Bank Guarantee shall be drawn in favour of ONGC from a Scheduled Bank as per the Performa (Annexure-D of Chapter-I of this MM Manual) given at

Appendix- (Appendix no. of the bid document to be indicated by the Work Center suitably). The Bank Guarantee shall be initially valid from the date of submission upto a period of one year beyond the revised completion date and shall be kept valid till the final settlement is arrived either mutually or through Conciliation/Arbitration/Court. Upon submission of the Bank Guarantee and its acceptance by ONGC, the amount withheld on account of Liquidated Damages as per Clause No.(relevant clause number to be indicated by Work Center), shall be released to the Contractor. In case such Bank Guarantee has been issued by a foreign bank (the same should be issued from any of the banks indicated at Appendix-____ of Annexure-___ of bid document. Appendix/Annexure number of the bid document should be indicated by the work center ) the same shall be accepted only with collateral security/ guarantee/ confirmation from any scheduled Indian Bank. After final settlement of the issue regarding levy of LD as per the provisions of the contract, the applicable LD shall be remitted by the Contractor to ONGC, failing which the amount of LD shall be recovered by invoking the Bank Guarantee. 56.4 Fall Clause (Applicable in case of Rate Contracts for indigenous purchases & its non-acceptance will be a rejection criteria). The price charged for the materials supplied under the contract / supply order by the contractor / supplier shall in no event exceed the lowest price at which the supplier / contractor or his agent / principal / dealer, as the case may be, sells the materials or offer to sell materials of identical description to any persons / organisations including the purchaser or any Department of the Central Govt. or any Deptt. of a State Govt. or any Statutory Undertaking of the Central or State Govt., as the case may be, during the currency of the contract/supply order. If any time, during the said period the contractor / supplier or his agent / principal / dealer, as the case may be, reduces the sale price, sells or offers to sell such materials to any persons / organisations including the purchaser or any Deptt. of Central Govt. or any Deptt. of a State Govt. or any Statutory Undertaking of the Central or State Govt. as the case may be, at a price lower than the price chargeable under the contract / supply order, he shall forthwith notify such reduction or sale or offer of sale to the Purchase Authority who has issued this Supply Order and the price payable under the Supply Order / Contract for the materials supplied after the date of coming into force of such reduction or sale or offer of sale shall stand correspondingly reduced. The above stipulation will however not apply to : a) Exports by the Contractor / Supplier or b) Sale of goods as original equipment at prices lower charged for nominal replacement. c) Sale of goods such as drugs which have expiry dates. than the prices

i.

ii.

iii) The Contractor / Supplier shall furnish the following certificate to the concerned Paying Authority alongwith each bill for payment for supplies made against this supply order / contract:"I/We certify that there has been no reduction in sale price of the materials of description identical to the materials supplied to the ONGC under the contract / supply order herein and such materials have not been offered / sold by me / us to any person / organisation including the purchaser or any Deptt. of Central Govt. or any Deptt. of a State Govt. or any Statutory undertaking of the Central or State Govt., as the case may be upto the date of bill / during the currency of the supply order/contract whichever is later, at a price lower than the price charged to the ONGC under the contract / supply order except for quantity of materials categories under sub-clauses (a), (b) (c) of sub para (ii) above details of which are as follows:-

----------------------------------------------------------------------------------------------------------------------------.

56.5

Inspection and rejection of Materials by Consignee (s) When materials are rejected by the consignee, the Materials Management Officer concerned will intimate to the contractor the details of such rejected stores, as well as the reasons for their rejection and that the materials are lying in the consignee's premises at the risk and cost of the contractor. He will also call upon him either to remove the materials or to give instructions as to their disposal within 14 days and in the case of dangerous, infested and perishable stores within 48 hours, failing which the consignee will either return the materials to the contractor freight to pay or otherwise dispose them of at the contractor's risk and cost. The Materials Management Officer will also intimate to the Finance and Accounts Officer concerned the quantity of the materials rejected to enable him to recover the freight due at the full public tariff rates from the contractor. The purchaser shall also be entitled to recover handling and storage charges for the period, during which the rejected stores are not removed @ 5% of the value of materials for each month or part of a month till the rejected materials are finally disposed off.

56.6

Subletting and Assignment: The contractor shall not save with the previous consent in writing of the Purchase Authority sublet, transfer or assign the contract or any part thereof or interest therein or benefit or advantage thereof in any manner whatsoever provided nevertheless that any such consent shall not relieve

the contractor contract. 56.7 Earlier Delivery

from

any

obligation, duty or responsibility under the

When contracts are placed at higher rates for the sake of earlier delivery, the clause as given below, enabling the ONGC to realise compensation for the extra cost due to delay in supply must be included therein:"It should be noted that on your assurance of earlier delivery, this order has been placed on you in preference to the lowest acceptable bid. In case of failure to complete supplies against this contract in terms thereof within the date of the delivery specified herein, you would be liable to pay to the ONGC the difference between the contract rates and those of the lowest acceptable bid i.e. Rs...... per unit, not-withstanding the fact that the delay in supply may have been caused by force majeure. This is without prejudice to the right of the ONGC to recover all other losses and damages resulting from delayed supplies, including the right of cancellation".

56.8

The following clause will invariably be included in all invitation for bids:"It should be noted that if a contract is placed on a higher bidder as a result of this tender, in preference to the lowest acceptable offer, in consideration of an earlier delivery, the contractor will be liable to pay the ONGC the difference between the contract rate and the rate quoted by the lowest acceptable bidder in case he fails to complete the supply in terms of such contract within the date(s) of delivery specified in the tender and incorporated in the contract. This is without prejudice to other right under terms of contract".

56.9. Pilot approval (wherever applicable) 56.9.1 Before commencing bulk supply, you would forward two sets of samples supported by two sets of your manufacturing drawings for approval of the Inspecting Officer. Such an approval by Inspecting Officer may need at least 15 days time, which should be catered for by you within the delivery schedule. Inspecting Officer would return to you one set of the samples and one set of your manufacturing drawings duly sealed for your guidance in bulk supply. 56.9.2 You will make available free of charge all testing facilities in your plant to the Inspecting Officer to enable him to test the sample and carry out inspection. You will arrange for any test desired by the Inspecting Officer, at any other test house / laboratory as approved by the Inspecting Officer, if facilities for such test are not available in your plant. In the latter case, the test charges would be reimbursed by the purchaser if the samples are

considered acceptable, whereas if the samples are not found acceptable, the test charges would be borne by you. 56.10 Bulk Inspection (wherever applicable) 56.10.1 The bulk shall be accepted in accordance with the samples approved. The Inspector shall be given sufficient notice which shall not be less than 21 working days to plan out the bulk inspection. Percentage would be arranged by you on the same lines as in case of the pilot samples and the test charges would be dealt with accordingly. 56.10.2 Sampling procedure will be as per the Authority. requirement of the Inspection

56.10.3 The materials rejected by the Inspection Officer during this inspection will be replaced by you immediately, latest within two weeks of such rejection. Any rejection by Inspecting Officer shall be considered final and binding on you. 56.11 EMAIL / TELEGRAPHIC / FAX OFFERS Telex / Telegraphic / Fax copy of offers will not be accepted. However, in OEM purchases from single source or where source of supply is pre-fixed, Telex / Fax / Telegraphic / E.Mail offers may be considered provided such offers are followed by confirmatory copy within 15 days of the date of receipt of offer. 56.12 Arbitration Clause: 56.12.1 For indigenous contracts upto Rs.1.00 crore `Sole Arbitration' clause will be applicable. 56.12.2 For indigenous contracts exceeding Rs.1.00 crores and for all Foreign Contracts "Two Arbitrators and One Umpire" clause will be applicable. 56.12.3 For Public Sectors, the arbitration clause as per apply. 56.13 Govt.'s directives will

Submission of tender samples after opening of tenders The belated submission of tender samples (wherever these are required), unnecessarily holds up decision on tenders. It will be made clear to tendering firms by insertion of a suitable clause in bidding documents that samples, wherever required, should be sent alongwith offers so as to reach before closing time of tender failing which the offer shall be ignored straight away.

56.14 Scale of Rebate

56.14.1 In all invitation for bid tenders the "Instructions to Bidder" conditions of contract should include the following condition:-

and the

The minimum percentage of rebate which would be considered for early payment would be as under:(i) Bills upto Rs. 5,000 2% 1%

(ii) Bills above Rs. 5,000

56.15 Catalogue and manual in case of new buys In case of new buys provisions will be made in bidding document and supply order to the effect that supplier will send catalogue and manual of relevant item(s) to Inventory Control Cell under intimation to order placing authority within two months from the date of the receipt of supply order (or as desired by the order placing authority depending upon the delivery period). 56.16 General Conditions 56.16.1 When the materials are dispatched to the consignee, intimation must also be given to this effect to the purchasing authority and also to the consignee. Reference to the supply order should invariably be given in all relevant correspondence. 56.16.2 The Bid is liable to be rejected in case the Bidder does not comply with the tender stipulations or the goods offered do not conform to the required specifications indicated therein. 56.16.3 Any other terms and conditions, offered by the firm and not included in this supply order, are not acceptable to the ONGC.

EARNEST MONEY / SECURITY DEPOSIT

57.

EARNEST MONEY (BID BOND / BID SECURITY) AND SECURITY DEPOSIT (PERFORMANCE BOND / CONTRACT SECURITY) EARNEST MONEY / BID BOND / BID SECURITY

57.1

57.1.1 Against each tender, subject to the proviso as given in para 57.1.2, the Earnest Money / Bid Bond / Bid Security is to be obtained so that the Bidder does not withdraw his offer within the validity period thereby causing inconvenience to the department. It will be made clear in the Bidding document that earnest money / bid bond / bid security of those bidders who withdraw their bids during validity of offer, will be forfeited. 57.1.2 Fixed amount of earnest money / bid bond / bid security, will be worked out on the basis of expenditure sanction for complete tender as well as unit-wise group-wise expenditure sanction and indicated in Bidding document for submission by the bidders. 57.1.3 When the Bids are invited on quantity basis like weight in respect of chemicals, the EMD / Bid Bond / Bid Security will be indicated for 25%, 50%, 75% and 100% quantity. 57.1.4 (MM/8/2003 dated 02.04.03) The amount of EMD / Bid Bond / Bid Security for complete tender and unit(s)/group of items(s)/quantity will be worked out on following slab basis for indicating the same in bidding document of the same in bidding document for obtaining of the same from bidders:
Amount of expenditure sanction Amount of EMD/Bid Bond/Bid Security (Rs in Lakhs) >5 <=500 @ 2% of expenditure sanction >500 <=1500 Rs 10.00 Lakhs+1-1/2% on amount exceeding Rs 500 Lakhs Rs 25.00 Lakhs+1% on amount exceeding Rs 1500 Lakhs Rs 35.00 Lakhs+1/2% on amount exceeding Rs 2500 Lakhs

>1500 <=2500

> 2500

(MM/24/2006 dated 24.07.2006) However, the maximum limit of EMD/Bid Bond/Bid Security for a tender shall be US$ 0.5 million for foreign bidders and Rs 2 crores for Indian bidders.

(MM/56/2010 dated 11.10.2010) 57.1.5 The bidders should offer full quantities of goods or Services for each of the tendered item or category or group wherein the item or category or group is to be evaluated separately. Bidders can however quote for part quantity , if this condition is incorporated in the BEC with the approval of CPA. In case the bidders are allowed to quote for part quantity, the bidders can send EMD/ Bid Security according to the quantity offered (not exceeding the EMD / Bid Bond / Bid Security specified for entire tender). In such event, the amount of EMD/Bid Bond for part quantity must be indicated in Bid Evaluation Criteria. (MM/68/2012 dated 05.10.2012) No earnest money / bid bond / bid security in the form of Bank Draft or in lieu thereof Bid Bond will be necessary for purchases upto Rs. 5.00 lakhs. Earnest money / bid bond / bid security in the form of Bank Draft or in lieu thereof Bid Bond will also not be necessary for purchases from Central Govt. Departments and Central Public Sector Undertakings and for buys of spares or stores / capital items / equipment of proprietary nature from Original Equipment Manufacturers / Authorised Dealers/Distributors/ Stockists of Original Equipment Manufacturers. No earnest money shall also be necessary for purchase / service contracts on nomination basis. The firms registered with ONGC will also be exempted from payment of earnest money / bid security or in lieu thereof for furnishing of bid bond for buys against limited tenders provided normal tendering procedure is adopted. In Registration Certificate also it will be made clear that the facility for exemption from payment of earnest money / furnishing of bid bond / bid security will be available in normal limited tenders only in case purchase is against normal tendering procedure. MSEs registered with District Industry Centers or Khadi and Village Industries Commission or Khadi and Village Industries Board or Coir Board or National Small Industries Corporation or Directorate of Handicrafts and Handloom or any other body specified by Ministry of MSME will be exempted from furnishing bid bond / bid security / earnest money against open and limited tenders irrespective of monetary limit mentioned in their registration certificate provided they submit evidence that they are registered for the item(s) they intend to quote. 57.1.6 (SP/1/99 dated 07.05.99) EMD / Bid Security can be obtained from bidders in any one of the following modes: (i) (ii) Bank Draft in favour of ONGC valid for 180 days from the date of issue of the same. Bank Guarantee from banks acceptable to ONGC, valid for 30 days beyond the required validity of bid.

Irrevocable letter of credit (as per prescribed proforma) valid for 30 days beyond the required validity of bid, duly confirmed by Indian Nationalised / Scheduled banks will be acceptable only from foreign bidders. (iv) Cashiers / Banker cheques valid for 180 days from the date of issue of the same will be acceptable form foreign bidders only. (MM/56/2010 dated 11.10.2010) 57.1.7 Subject to provision in para 57.1.5 above, offers without earnest money / bid bond / bid security will not be considered and summarily rejected. The condition of furnishing earnest money / bid bond / bid security will not be relaxed / waived and it would be preferable to go for a re-tender. For relaxation of condition relating to Bid Security, prior to invitation of bid, the cases (where exigencies of work so require) are to be put up to concerned Level-1 Executive upto his purchase powers. Concerned Director has full powers in this regard. (Authority: Item R6 and MP11 of BDP-2009) 57.2 SECURITY DEPOSIT / PERFORMANCE CONTRACT SECURITY BANK GUARANTEE /

(iii)

(MM/66/2012 dated 03.05.2012) 57.2.1 Security Deposit / Performance Bank Guarantee / Contract Security will be obtained as per following monetary limits:(i) Contracts Project platforms. for Turnkey Construction / 10% of Contract Value.

(ii)

All type of service / Rig hiring contracts.

10% of one year's contract value. (for rig hiring contracts one years contract value shall be the Effective Day Rate based on which bids were evaluated x 365 days). In case of contracts with primary term of two or three years, the Performance Bank Guarantee / Contract Security will be obtained with initial validity for two or three years as the case may be. 7.5 % of order/contract value.

(iii)

Supply of goods other than Casing Pipes. Supply of Casing Pipes.

(iv)

10% of order/contract value.

(MM/68/2012 dated 05.10.2012)

57.2.2 No security deposit / contract security or in lieu thereof Performance Bank Guarantee will be necessary for purchases upto Rs.1.00 lakh. Also security deposit / Contract Security or in lieu thereof Performance Bank Guarantee will not be necessary for buys of spares or stores / capital items / equipment of proprietary nature from Original Equipment Manufacturers / Authorised Dealers/Distributors/ Stockists of Original Equipment Manufacturers. The Security Deposit / Contract Security or in lieu thereof Performance Bank Guarantee will invariably be obtained even from the Public Sector Undertakings and / or firms registered with ONGC / DGS&D / MSEs registered with District Industry Centers or Khadi and Village Industries Commission or Khadi and Village Industries Board or Coir Board or National Small Industries Corporation or Directorate of Handicrafts and Handloom or any other body specified by Ministry of MSME and against development orders. (MM/60/2011 dated 03.06.2011) 57.2.3 In case the firms give their security deposit / contract security / Performance Security in the form of Bank Guarantee, it will be ensured that only Bank Guarantee given by any of the Nationalized Bank or Scheduled Bank or State Bank of India and its wholly owned subsidiaries are accepted. In case of import purchase, Bank Guarantee from a Bank acceptable to ONGC will be required. (MM/56/2010 dated 11.10.2010) 57.2.4 For offers with shortfall in EMD/bid bond amount, an opportunity can be given to the bidder to submit additional bid security/bond or amendment in the bid bond for meeting the shortfall in the bid security amount. This opportunity can be given to the bidders with the approval of L1, who will have full powers in this regard. 57.3 57.4 Provision deleted vide MM/52/2010 dated 03.05.2010 Release of Security Deposit / Performance Bond / Contract Security

(MM/48/2009 dated 04.11.2009) 57.4.1 All concerned authorities shall ensure that details of all claims which are to be recovered from the supplier / contractor are promptly intimated to the respective payment authority, without any loss of time, so that the claim can be recovered before releasing the pending payment(s). Details of such claims should also be forwarded to the authority who has concluded the respective purchase order / contract / rate contract and has obtained the Contract Security. After completion of the supplies / execution of the contract, the respective authorities as mentioned below should take prompt actions in respect of the following:

(i)

In case of purchase of goods, for recovery of any claims other than discrepancies / recoveries indicated in the GRV, the respective consignee(s) [including port consignee / C&F section etc.] should forward the details of claims which are to be recovered from the supplier, to the respective purchase officer, immediately after completion of supplies against the purchase order, i.e. within 15 days after receipt of last lot of material. Even if there is no claim against a particular purchase order, the consignee(s) should forward a No Demand Certificate to the respective purchase officer within the stipulated time as above. Wherever installation and commissioning is also involved alongwith supply of the equipments, Indentor should ensure installation and commissioning within the stipulated time for the same (by keeping the site ready well before arrival of the equipment, by drawing the equipment immediately after arrival at stores and by coordinating with supplier for timely completion) and forward a copy of satisfactory installation and commissioning report alongwith details of outstanding claims (if any) or a No Demand Certificate, to the authority who has concluded the respective purchase order / contract, within 15 days after completion of installation and commissioning of the equipment satisfactorily. In case of centrally finalized rate contracts, for which the Contract Security is obtained centrally for the entire contract, In- charge MM of each work center should forward details of Purchase Orders placed against each of such rate contracts to the authority which has concluded the rate contract. Further, in respect of each such order which has been placed against the rate contract, In- charge MM of the work center shall send the details of outstanding claims (if any) or a No Demand Certificate, to the authority who has concluded the rate contract within 15 days after receipt of the last lot of material. In case of Service Contracts, Indentor should forward details of outstanding claims (if any, which could not be recovered from the regular payments) or a No Demand Certificate, to th e authority who has concluded the respective contract, within 15 days after expiry of the contract period. In case of LSTK contracts, in which Contract Security is obtained to cover the warranty period also, Indentor should forward details of outstanding claims (if any) or a No Demand Certificate, to the authority who has concluded the respective contract, within 15 days after expiry of the warranty period.

(ii)

(iii)

(iv)

(v)

In all cases, wherever the claims are to be recovered from the Contract Security, it should be ensured that the claims with complete details are forwarded to the concerned aurhority(ies) well before the expiry of the validity of Performance Bond.

Under exceptional circumstances, in case where above details can not be furnished within the stipulated time, approval of concerned L1 executive should be obtained by the respective authority(ies) (i.e. Consignee/In-charge MM / Indentor, as the case may be) giving full reasons necessitating additional time for furnishing No Demand Certificate. Such approval should be forwarded to the concerned purchase officer / contract concluding authority for obtaining suitable extension for the validity of Performance Bond. 57.4.2 On receipt of intimation regarding claims for recovery (if any) / No Demand Certificate, as per para 57.4.1 above, the concerned purchase officer / contract concluding authority shall verify whether the claims have already been recovered from the payments. After release of final payments, if any claims are outstanding for recovery, necessary action should be initiated to recover the same from the Contract Security. Thereafter, for the release of Contract Security (after recovering the claims if any as mentioned above), the approval shall be obtained as per para 57.5 below. Accordingly, necessary advice shall be issued to the concerned Finance section for releasing the Security Deposit / Performance Bond. 57.5 Release of Earnest Money / Bid Security / Bid Bond / Security Deposit / Contract Security / Performance Bank Guarantee

(MM/33/2008 dated 29.04.2008) The Competent Purchase Authority (who has approved award of contract) will have powers to approve release of earnest money / Bid Bond / bid security / security deposit / contract security performance bank guarantee. However, concerned L-1 Executive will have full powers in this regard, irrespective of the type of tender or value of tender / order / contract, including for cases falling within the powers of Directors and EPC. (MM/56/2010 dated 11.10.2010) 57.6 Invoking/forfeiting of Bid Security / Contract Security / Bank guarantees Approval of Level-1 executive will be obtained for invoking / forfeiting the Bid Security / Contract Security / Bank Guarantee(s) for non-EPC cases. For EPC level cases, approval of concerned Director shall be obtained. (Authority: Item R9 and MP14 of BDP-2009)

PROVISIONS AS PER VARIOUS GOVT./STATUTORY GUIDELINES

(MM/53/2010 dated 17.05.2010) 58. PROVISION AS PER VARIOUS GOVT./STATUTORY GUIDELINES Provisions at para 58.1, 58.1.1, 58.1.2, 58.1.3, 58.2, 58.2.1, 58.2.1, 58.2.1.2, 58.2.1.3, 58.2.1.4 and 58.2.5 deleted vide MM Manual amendment No. MM/61/2011 dated 14.06.2011. Remaining paras re-numbered. 58.1 Turnkey Projects The domestic bidders would be entitled to a price preference of 10% over the lowest acceptable quoted foreign bid. 58.1.1 Oil Field Services Domestic bidders providing oil field services in the global tenders will be entitled to a price preference of 10% over the lowest acceptable (quoted) foreign bid. 58.1.2 The above Price Preference would be used for the purpose of evaluation of bids only and the order on the Indian party will be placed on the basis of quoted price if the same happens to be upto or lower than the limit of price preference. 58.2 In the case of purchases / services under World Bank financing, price preference, as per guidelines issued by the World Bank, will apply. Price / purchase preference to the products of Small (SSS). Scale Sector

58.3

As per Govt.'s policy certain items are to be purchased exclusively from Small Scale Sectors. For other items too price preference upto 15% has to be given to the Small Scale Sectors registered with NSIC as per Govt.'s instructions provided the products of Small Scale Sectors are otherwise acceptable in terms of quality and specifications. The quantum of price preference will be decided on the merit of each case in consultation with attached Finance. (Authority: DSP/C&P/13(13)/70/81 dt.13.3.81) (MM/53/2010 dated 17.05.2010) 58.4 Purchase of Lead Acid Batteries with provision for buy-back of the used batteries by the supplier. 58.4.1 As per The Batteries (Management and Handling) Rules, 2001, consumers of lead acid batteries are required to dispose the used batteries, only through depositing with the dealer/ manufacturer/ importer/ assembler/ registered recycler/ re-conditioner of the lead acid batteries or at the designated

collection centres. Likewise, it is obligatory on the part of the manufacturer / dealer of the lead acid batteries to collect the used batteries from the consumer. 58.4.2 Accordingly, following procedure shall be adopted while procuring new lead acid batteries, for replacing the condemned, used and unserviceable batteries of similar type and specifications: (i) In tenders for procurement of new batteries, bidders should be asked to quote for buy-back of the used batteries of similar type and specifications. The location of the old batteries should be indicated in the tender, so that bidders can asses the condition of the ba tteries, for quoting buy-back prices for the same on collection from the location basis. (ii) Evaluation of offers for new batteries will be carried out based on Net cost for each battery, arrived at as under: Net cost for each battery = (cost of each new battery + all taxes and duties) (value offered for each used battery) (iii) Even for the order placed against DGS&D rate contracts, the concerned vendor should be insisted to submit his offer for buy-back of used batteries. (iv) Accordingly, the purchase order for new batteries shall be placed, by indicating the Net Amount payable after deducting the value offered for used batteries. Further, for the purpose of accounting and discharging Tax liabilities, a separate Sale Letter shall be issued for the used batteries (by the same authority who issued Purchase Order for new batteries), by keeping provisions for adjusting the deducted amount against the supplies (of new batteries) as the value for the used batteries. (v) On receipt of new batteries and adjustment of value for used batteries (in the payment), concerned Purchase Officer shall issue a Delivery Order (addressed to indentor, with copies endorsed to Vendor and the concerned sections - viz. Finance, Disposal and Security), so that vendor can collect the used batteries from the locations. (vi) Accordingly, indentor shall hand over used batteries to the vendor against proper receipt and Gate Pass (issued on the authority of the Delivery Order). (vii) Indentor shall forward copies of receipt obtained from the vendor to Finance and Disposal section for regularization of the sales proceeds and also for inclusion in the returns to be filed with Sales Tax authorities.

COMPARATIVE STATEMENT

59. 59.1

Comparative Statement After all the quotations have been opened, these will be handed over to the section concerned for making comparative statement.

(MM/33/2008 dated 29.04.2008) 59.2 All the bids received in respect of an enquiry or advertisement should be tabulated in the comparative statement (in the standard from (STR-13) prescribed for this purpose). All details required will be entered in the statement. For the tenders invited under Two bid system, Comparative Statement should be prepared at each stage (i.e. after opening of technocommercial bid and price-bid) and duly vetted by Finance as per provisions under para-59.9 below.

(MM/42/2009 dated 08.07.2009) 59.3 Every section will ensure that the comparative statement is prepared within shortest possible time, not exceeding 04 days of the receipt of the quotations after techno-commercial bid opening and not exceeding 03 days after price bid opening. The local Bids which are received after the due date and hour are not to be considered. Similarly, all quotations dispatched by the outside Bidders after the due dates are also not to be considered. These will not be entered in the comparative Statement. The comparative statement will be prepared and signed by the concerned Store Keeper / Dealing Asstt ./ Dealing Officer.

59.4

59.5

(MM/33/2008 dated 29.04.2008) 59.6 At the techno-commercial evaluation stage, the comparative statement should be objectively prepared covering all the techno-commercial points of the tender required for evaluation. Compliances and non compliances against all the requirements of BEC and the deviations / exceptions (if any) should be clearly spelt out in the comparative statement. At the price-bid evaluation stage, it should be ensured that the rates mentioned in the comparative statement are in one unit so that comparison can be made at a glance. The final evaluation prices for each bidder should be worked out as per evaluation criteria and to be tabulated in the Comparative Statement, after taking into account all the charges / statutory levies, which are to be paid by ONGC. 59.7 The comparative statement will be checked and signed by the officer of Materials Management as per monetary limits indicated below before the same is submitted with details / due recommendations to Tender Committee / Competent Purchase Authority:

Monetary Value Upto Rs. 7.5 lakhs

Officers Materials Management Officer. In case comparative statement is prepared by the Materials Management Officer, the comparative statement should be checked at the level of Sr.MM Officer. Sr. M.M. Officer

Above Rs. 7.5 lakhs to Rs.35 lakhs. Above Rs.35 lakhs to Rs.75 lakhs Above Rs.75 lakhs 59.8

Dy.Manager(MM)

Manager(MM)

The above check will be exercised by respective officers as far as possible. In the event an officer of the required level is not available, an .Officer immediately next below level would exercise the check.

59.9 All comparative statements for tenders exceeding the value of Rs.50,000/will be referred to Finance for scrutiny. The monetary limits of different levels of Finance and Accounts Officers for checking the comparative statement will be as under: i) ii) Upto Rs.7.5 lakhs Above Rs. 7.5 lakhs to Rs.35 lakhs Above Rs. 35 lakhs to Rs.75 lakhs. Above Rs.75 lakhs Finance & Accounts Officer Sr. F&A Officer

iii)

Dy.Manager(F&A)

iv)

Manager(F&A)

59.10 The above checks will be exercised by respective officers as far as possible. In the event of an officer at the required level is not available, an officer immediately next below level would exercise the checks. (MM/42/2009 dated 08.07.2009) 59.11 The comparative statement will be checked by the associated Finance. The comparative statement will invariably be vetted within shortest possible time, not exceeding 04 days of its receipt in Finance. Each page of the comparative statement will be initialled by both the Materials Management Officer and the Finance & Accounts Officer as per above Monetary limits.

59.12 The vetting of the comparative statement by Finance will, however, not absolve the Department originally preparing the comparative statement from the responsibility. (MM/42/2009 dated 08.07.2009) 59.13 In the cases where Tender Committee is required to be held, a copy of the Comparative Statement should be made available to the members of the Tender Committee at least 48 hours before the first meeting of the committee alongwith a covering docket containing the following information: i) Name of the indenting department. ii) Estimated expenditure. iii) Whether expenditure sanction by the Competent Authority has been accorded. iv) Have normal tendering procedure as applicable been followed? If not, brief reasons thereof. v) Has normal time been allowed to the bidders for quoting their rates? If not, reasons therefore. However, for subsequent meetings of Tender Committee, copy of CS and such details are not required to be sent to TC members in advance.

TECHNICAL CLARIFICATIONS / COMMENTS

60.

CLARIFICATION FROM BIDDERS AFTER TENDER OPENING

(MM/40/2009 dated 30.06.2009) 60.1.1 As a principle, clarifications from bidders after opening of tenders are to be avoided in single bid system and after price bid opening in two bid system. 60.1.2 At the techno-commercial bid evaluation stage (under two bid system) also, post tender clarifications should be avoided, as far as possible. In case implied clarifications / confirmations exist in the bid on the issues involved, work center may consider processing of the bid further on the basis of such implied confirmations. However, in case after opening of un-priced techno-commercial bids, if it is observed that clarifications from the bidders on important techno-commercial aspects are necessary for enhancing competition in the tender, one opportunity shall be given to them for submission of clarifications/confirmations/deficient documents. Wherever TC is required, it will deliberate specifically on the issues requiring clarifications and submit their recommendations to the CPA for approval for asking the bidders to submit clarifications/ confirmations/deficient documents. Concerned Key Executive (Level I-A/B/C/D/E/F) will have full powers to approve seeking of clarifications/confirmations/deficient documents from the bidders even for cases falling within the powers of Directors and EPC. (MM/58/2011 dated 21.03.2011) 60.1.2.1 In OEM/OEC cases, bidder can be asked to withdraw the exceptions and deviations taken by them to ONGCs standard terms and conditions by the dealing officer in MM after obtaining the approval of I/c MM directly without holding TC. (MM/40/2009 dated 30.06.2009) 60.1.3 With a view to widen competition in the tender, decision would need to be taken on case to case basis as to whether one more round of clarifications need to be sought from the bidders. In that case, TC will deliberate specifically on the issues requiring second round of clarifications/ confirmations/ deficient documents and submit their recommendations to CPA for approval for asking the bidders to submit clarifications/ confirmations/deficient documents after recording proper justification for the same. However, concerned Key Executive (Level I-A/B/C/D/E/F) shall have full powers to approve seeking of upto two rounds of clarifications / confirmations / deficient documents, including in cases falling within the powers of Directors and EPC. 60.1.4 Clarifications should be sought from bidders, by specifying a reasonable cutoff time for submission of clarifications/ confirmations/ deficient documents. Sufficient time should be given to the bidders to submit their responses depending upon the nature of clarifications/confirmations/deficient documents

which are required to be submitted. However, in the event of an unscheduled holiday falling in the specified day of the cut off time, the next working day shall be treated as the cut off time. In all other situations, if an extension for the cut off time is felt necessary based on requests receive from the bidder(s), approval should be obtained from CPA. For cases falling under the powers of Director/EPC, approval of concerned Director shall be obtained. Such approval for the same should be obtained before the expiry of the specified cut off time and the decision should be communicated to all the bidders from whom the clarifications/conformations/deficient documents have been sought. 60.1.5 Clarifications/confirmations/deficient documents which are received after the specified cut-off date should be considered only in exceptional situations depending upon merit of the case, where at least two clear TA/CA offers are not available, with the approval of the authority next higher to the CPA, after recording detailed justification for considering such offers. For cases falling under the powers of Director/EPC, approval of concerned Director shall be obtained. 60.1.6 Any technical clarifications/confirmations/deficient documents required by the User/Indenting Department should be routed through concerned Materials Management. 60.2 (Provision deleted, MM/10/2003) 60.3 61. 61.1 (Provision deleted, MM/10/2003) CORRESPONDENCE WITH SUPPLIERS BY INDENTORS Before finalisation of the tender, all correspondence with the bidders must be done by concerned Materials Management. However, after placing supply order / contract, if considered necessary, the indentor(s) may interact with supplier(s) / contractor(s) for any clarification provided the same does not result into modification of any condition of supply order / contract and does not involve financial implications. However, copy of such correspondence must be marked to MM Department for record. It must be ensured that clarifications asked for by the Indentor(s) did not have any bearing on the price aspect. TECHNICAL COMMENTS ON OFFERS In all cases where technical evaluation is involved, the offers shall be referred to the indentor and its comments put up to tender committee.

61.2

62. 62.1

(MM/42/2009 dated 08.07.2009) 62.2 7 (Seven) days time will be allowed to Indentor / User to furnish the Technical Comments. It will be ensured by the User Deptt. that comments are invariably

furnished within specified time. Indentor / User will be fully responsible for the acceptability of the materials recommended for purchase. If their recommendations are at variance with the specifications laid down in the bidding document, they will clearly specify and indicate the difference and acceptability. 62.3 The Indentor's representative of Tender Committee shall scrutinize the quotations (already forwarded to the technical section), in advance from the technical angle before attending the Tender Committee meeting.

62.4 Level for technical comments on offers 62.4.1 In case of purchase of general nature of items such as bulbs, tubes and stationery, technical comments will not be necessary. In other cases, technical scrutiny and evaluation of offers will be done and comments thereon made at the level at which the tender committee in the case is to be held.

TENDER COMMITTEE

(MM/56/2010 dated 11.10.2010) 63. FORMATION OF TENDER COMMITTEE AND ITS MONETARY LIMITS

63.1 No Tender Committee will be held for cases valuing upto Rs 5.00 Lakhs. All procurement cases (including finalization of Rate Contracts), valuing above Rs. 5.00 Lakhs, will be referred to Tender Committee. However, TC is not required for placement of individual orders against DGS&D and ONGC rate contracts. TC is also required to be held for carrying out price negotiations with bidders in all cases, irrespective of the value of the case. (Authority: Note No. 17.12 and 17.13 under Appendix -1 of BDP-2009) 64. SINGLE ITEM / GROUP OF SIMILAR ITEMS "Single item" or a "Group of similar items" is defined as follows: a) Single item One capital item (other than furniture) and or its assemblies and components or stores like barytes, bentonite, cutch, CMC, Mica etc. are single items, although they form a group of stores e.g. mud chemicals. Similarly, shoes and chappals are two single items. b) Group of similar items Furniture, spares for one type of vehicle etc. e.g. jeep spares and TMB spares are two group of items. 65. CONVENING OF TENDER COMMITTEE The concerned Materials Management will convene the tender committee. 66. BRIEF FOR AND LEVEL OF TENDER COMMITTEE

(MM/58/2011 dated 21.03.2011) 66.1 Constitution of Tender Committee: The following levels of MM & Finance officers and indenting Deptt. shall form part of the Tender Committees: Sl 1 Accepting Authority Level-I or above TC Level In-charge MM / Head Central Purchase under Chief MM, In-charge Finance and Level II of User Department.

In-charge MM

Second Officer

Level

MM

Other MM Executive (E-4 & above).

Second Level MM Officer #, Second Level Finance Officer# and Officer of indenting dept of corresponding Level MM Officer E-4 Level , Finance Officer and Officer of indenting Dept. of corresponding level MM Officer E-3 Level, Finance Officer and Officer of indenting dept. of corresponding level.

Note: (i) # Second level officer in MM and Finance as designated at the work center

(ii) The level of TC and CPA will be with reference to sanction value or tender value whichever is higher. However, after opening the price bids, if the evaluated price of lowest bid / bids is higher than the tender value and the tender accepting power is not within the power of original CPA, then the CPA and TC level will be raised to appropriate higher level. (iii) If the required level of TC member is not posted/ not in station (on leave/tour) at a work centre then the TC member will be of the next lower level available and /or as nominated by the Tender accepting authority. Level I shall have full powers in such cases. (iv) In case of turnkey projects wherever indentor is not end user and requirement is for use within the work centre then end user will also be a member of tender committee. (v) For items/services under centralised procurement, officers posted in Technical cell attached with the respective set-up for centralised procurement shall carry out the Technical evaluation and also can be TC members as representatives of Indenting Deptt. However, due to technical complexity of the item/service being procured, if In-charge of the Technical cell feels necessary, he can put up the case to the respective Chief of Services/concerned Head of the Deptt. for Technical comments and can also co-opt a representative of the concerned Service as a member of the TC with the approval of the respective Chief of Service/Head of the concerned Deptt. (vi) For all other items/services also, TC will continue to have only three members. Wherever Indenting department and User department(s) are different, depending on technical complexity of the item/service being procured, Indenting Department can co-opt for having a representative from User department also in the TC. (vii) For OEM/OES/PAC/ cases where tender value is upto 5% / 1% of the open tender acceptance powers of Level-1 executive as per BDP item MP4 (a), TC shall be held at the level of 2nd level MM Officer / MM Officer E-4 level respectively as stated at Sl. No. 2/ Sl. No. 3 above. In such cases, TC

recommendations shall be put upto CPA (Level-1 executive) for approval through I/c MM. (Authority: Note-3 under Note common for MP4(a to f) of BDP-2009) (MM/56/2010 dated 11.10.2010) 66.2 Tender Committees should invariably be held when the same is scheduled. In case any of the TC members proceeds on leave / tour, he may authorize in writing the next subordinate senior most officer available in station to attend the TC meetings during his absence and to sign the TC proceedings.

66.3 The concerned dealing officer will prepare brief for perusal of all members of Tender Committee wherein complete details of case will be brought out. Such a brief, duly signed, will be given to members of Tender Committee well in advance of the meeting. This will, however, in no way, dilute the responsibilities of the tender committee. 67. EVALUATION OF BIDS BY TENDER COMMITTEE AND PREPERATION OF TENDER COMMITTEE PROCEEDINGS (MM/8/2003 dated 02.04.03) 67.1 Tender Committee will examine the bids to prepare its recommendations for submission to the authority competent to accept the tender. Where a higher bid is recommended, under exceptional circumstances adequate reasons in support of recommendation will be recorded.

(MM/42/2009 dated 08.07.2009) 67.2 It will be ensured by all TC members that Tender Committee proceedings are signed immediately on completion of the meeting, not exceeding 3 days from the date of the meeting. ACCEPTANCE OF RECOMMENDATIONS OF TENDER (MM/06/2002 dated 23.04.02) 68.1 Competent Purchase Authority can either approve or disapprove the recommendations of TC or give written directives for reconsideration of its recommendations. COMMITTEE

68.

(MM/56/2010 dated 11.10.2010) 68.2. The Competent Purchase Authority will be empowered to accept unanimous / majority recommendations of Tender Committee. When the unanimous / majority recommendations of the Tender Committee are not acceptable, or when the recommendations are divided equally (in case of even number of members), the

Competent Purchase Authority shall refer the case to the authority one step higher but with his recommendations. The authority next higher to the CPA with the concurrence of Finance at commensurate level, will be empowered to take decision. (Authority: Item MP4(g) of BDP-2009)

EXECUTIVE PROCUREMENT COMMITTEE

69.

Proposals to Executive Procurement Committee (EPC)

69.1. (MM/8/2003 dated 02.04.03) (i) Issue relating to any major modification or clarification in the Materials Management policy of ONGC may be referred to the Executive Procurement Committee (EPC) [consisting of full time Directors as members and C&MD as Chairman of the Committee] for its advice / decision. However, before reference to EPC is made, endorsement of Director In-charge (MM) will be obtained. In EPC level cases, approval of EPC will be required on the BEC to be followed for tender except in cases wherein earlier EPC approved BEC is proposed to be adopted for which purpose the approval of concerned Director will be obtained. (Provisions of para 24 of this Manual refers in this regard] In all cases exceeding powers of Director, after price evaluation of short-listed bidders, purchase approval of Executive Procurement Committee (EPC) will be obtained, after endorsement by Director in charge. The EPC will meet regularly depending upon number of cases to be considered. For EPC meetings, while all functional Directors are envisaged to participate, due to exigencies of work if some Director(s) is / are not present, minimum quorum consisting of C&MD, concerned Director, Director In-charge (MM) and Director (Finance) may consider and approve the proposal(s). For EPC meeting, self explanatory brief, duly signed by the Tender Committee members (Chief of Materials, in case of Policy issues) along with relevant documents will be sent to EPC Cell for examination through concerned Asset Manager / Basin Manager / Chief of Services / Head of Institutes / Regions for cases at Assets / Basins, etc [Director In-charge (MM) for policy matters]. The concerned Asset Managers / Basin Managers / Chiefs of Services / Head of Institutes / Regions for cases at Assets / Basins / Services / Institutes should obtain the concurrence of the respective Head of Finance (if the Head is already not a member of the tender committee) and endorsement of the concerned Director before sending the agenda brief to EPC. The brief should be sent well in advance before the expiry of validities keeping in view that sufficient time is available to the EPC Cell for examination of case. EPC Cell will examine the proposal(s) and seek clarification(s) from the concerned work centre(s) wherever considered necessary. A copy of brief will be circulated by EPC Cell to all members of EPC as well as to C& MD, ONGC for perusal. The EPC Cell will take action as indicated in para 70 below. 69.2 It will be ensured by concerned work centre that all procedural aspects have been taken care of before submitting cases to Executive Procurement Committee.

(ii)

(iii)

(MM/8/2003 dated 02.04.03) 70. 70.1 Minutes of discussion of Executive Procurement Committee The Executive Procurement Committee Cell will circulate amongst EPC members a copy of agenda brief and after discussions of the case in the meeting, will prepare draft record note of the Executive Procurement Committee meeting (within 3 working days if summary is not to be prepared and 5 working days if summary is to be prepared) and circulate the same through Chief-CP to all the EPC members for their comments. Comments if any, are to be given by EPC Members on the draft Record Note to the EPC Cell within two working days. The draft Record Note will be modified by EPC cell based on the comments received from EPC members and thereafter, the final draft will be submitted to C&MD for approval through the concerned Director. Upon approval of the Record Note by C&MD, EPC cell will forward the approved Record Note to all the EPC members and also to the concerned work centre for taking further action. However, the present practice of issue of the summary of EPC decision with the approval of concerned Director, will remain unaltered, but summary would be issued in respect of urgent cases only based on the discussions in EPC meeting. In case of urgency, EPC meeting can be held in the absence of C&MD who would authorize the senior most Director (other than the Director concerned whose proposal is under consideration) to Chair the meeting in his absence. The Draft Record notes will be put up to the Director who chaired the EPC meeting for his consideration and approval. However, the Record Note of discussion of such EPC meeting(s) will be put up to C&MD for information. Similarly, in case Director concerned is unable to attend the EPC meeting, he may request another functional Director to represent him in the EPC meeting for the case. 70.2 70.3 (Provision deleted, MM/8/2003) (Provision deleted, MM/8/2003)

CONSIDERATION OF OFFERS

71. 71.1

Consideration of offers The following points should be taken into consideration for placement of an order:i. ii. Normally the orders are to be placed on the lowest Bidder. If the lowest Bidder does not comply bids should be rejected. with the tender stipulation, his

71.2

Bids which do not conform to the specifications are to be ignored straightaway. Lowest bid may be determined from among those tenders which are in full conformity with the specifications. Purchase of Machinery and Equipment When deciding orders for the procurement of "Machinery and Equipment" it has to be ensured that orders are placed only on the manufacturers or their authorised dealers licensed by the Government for production under the Industries Development and Regulation Act, 1951.

72.

73. Purchase of Capital items and spares therefor (MM/57/2011 dated 01.03.2011) 73.1 Normally, for purpose of comparison of the prices quoted for the main plant and equipment, the prices of spares will not be taken into account. 73.2 However, for regularly procured equipment where requirement of fast moving / critical spares is considered necessary for one or two years operation of the plant and equipment and the same can be estimated based on the past experience, the list of such critical spares with quantity should be included in the tenders and the cost of only those spares should be considered for evaluation purpose alongwith the main plant and equipment. In such cases it should be made clear to the bidders that they should quote the prices for each item of the spares separately.

LATE TENDERS

74. 74.1

LATE TENDERS All bids received after the notified time and date of closing of tenders will be treated as late tenders. Unsolicited alterations or modifications of tenders received after the notified time and date of closing of the tenders shall not be entertained.

74.2

(MM/65/2012 dated 02.02.2012) 74.3 Late tenders, as defined in para 74.1 above, shall not be considered. Such late tenders, after recording with the concerned Materials Management officer, will be returned un-opened to the concerned bidder(s) within a period of seven days from the due date of opening of tenders. However, in case of purchase from OEM or their authorized Dealers/Distributors/ Stockists on single tender basis under exceptional circumstances, such late offers may be considered by extension of tender opening dates with the approval of CPA. For EPC level cases as well as cases falling within the power of concerned Director, concerned L-1 officer shall have full power to approve extension of tender submission date for consideration of such late offers.

SPLITTING OF TENDRS / SUPPLY ORDERS

75. 75.1

SPLITTING OF TENDERS / SUPPLY ORDERS While tenders are generally considered on an itemwise basis and the practice is to split these items where necessary and award the contract to the lowest acceptable bidder on an itemised basis, it is not necessary to split up where the monetary gain in splitting the of contract is less than Rs.150/-. The Materials Management Officer acting within his power, will have the authority to award contract on an overall basis for all items or by grouping items, provided that the total price paid as a result of doing so does not exceed by more than Rs.150/- the total price that would have been paid had the contract been awarded on an itemised basis. Items in a tender may be split up in more than one order depending on the merit of each case. In case of operational needs, tender for part of items may be finalised with the approval of Competent Purchase Authority for complete tender. For finalisation of tender for the remaining items, the case will be submitted to the Competent Purchase Authority for complete tender reflecting therein the facts that tender for part items in this case has already been finalised. Sometimes it becomes essential to place order simultaneously on two firms to safeguard against the chance of one of the firms failing to execute supplies or when material is urgently required and where a single firm cannot supply the required quantity in time. Where the tenders are being called and the volume of the purchase is likely to be very large and where it is important because of this to ensure that no single bidders bites off more than he can chew merely on the ground that he is the lowest bidders a procedure should be followed whereby when the tender is floated, bidders are specifically asked to quote(a) for the whole purchase (b) for a fraction of unit of the purchase and it is specified in the tender notice that the purchaser will use his discretion as to the number of units within the whole purchase which will be given to any one bidder. Where there is absolutely no doubt as to the capacity of the lowest negotiable bidder to supply goods conforming to the specifications within the delivery time, the order should be placed first upto the full quantity offered by him, so as to utilise the full capacity. In case there are reasons, which reasons should be recorded in writing, to believe that the lowest negotiable bidder cannot supply the full quantity in time, the Materials Management Officer may distribute the order in such a way so as to make the purchase as broad based as possible and to ensure timely supply.

75.2

75.3

75.4

REASONABILITY OF RATES

76.

INSUFFICIENT COMPETITION AND REASONABILITY OF RATES

(MM/46/2009 dated 04.11.2009) 76.1 In Limited Tenders which are not published on website (i.e. LTs upto Rs. 5 lakhs), minimum three techno-commercially acceptable quotations must be available before the tender is finalized. However, if less than three quotations are received in a case of such limited tender, then the case should be put up to the authority one level higher than the CPA for further decision. 76.2 Placement of order when one offer is received If after inviting open / limited tenders (including the tenders mentioned in para 76.1 above), only one quotation is received against the tender, the order should be placed on the bidder provided the rates are considered reasonable or if the
requirement is urgent.

76.3

Certification of urgency The urgency of the requirement would be certified by the indentor.

76.4

Reasonability of rates

(MM/60/2011 dated 03.06.2011) 76.4.1 Tender Committee shall be required to establish and certify the reasonability of rates of L-1 bidder received in a tender. Rate reasonability can be established in comparison to cost estimates and / or last purchase rate (if available) and / or price trends prevailing in the market (if the same can be determined depending on either the type of items being purchased or if there is any published documents / data reflecting the price trends or if there is relationship between raw material being used in manufacture of items like steel is used for manufacture of tubular goods). (When purchase does not fall under purview of tender committee, dealing officer of MM in consultation with Indentor and Finance shall ascertain the rate reasonability and put up the proposals for approval of CPA). Accordingly, the case shall be processed for finalisation, if the rates of L-1 bidder are considered to be reasonable on the basis of above analysis. Wherever the rates of L-I bidder are substantially high as compared to cost estimates / or LPR or not in line with the price trend prevailing in the market, a decision shall be taken as to whether price negotiation need to be conducted. (MM/58/2011 dated 21.03.2011) 76.4.2(a) In OEM/OES cases, budgetary offers need not be considered as basis for working out cost estimates. Instead, Last Purchase Rate (LPR) of the same item or similar item with suitable escalation, to take care of increase in cost

from the date of last purchase, may be considered as basis for working out reasonable cost estimates. Option of taking budgetary quote from the original equipment manufacturer/supplier may be resorted to only in situations where LPR is not available and no other reasonable basis is available for working out cost estimate. 76.4.2(b)In OEM/OES cases, any correspondence regarding price should be done only after the TC recommendations are approved by CPA as per para 77. (MM/46/2009 dated 04.11.2009) 76.4.3 For price negotiations procedure specified vide para 77 will be adhered to.

NEGOTIATIONS

77.

NEGOTIATIONS (MM/28/2007 dated 11.06.2007)

77.1 There should not be any Price negotiations. Negotiations, if at all, shall be an exception as provided herein below and shall be held with L-1 bidder only. 77.2 Negotiations shall be recommended in exceptional circumstances only after due application of mind and recording valid, logical reasons justifying negotiations. Price negotiations shall be undertaken by tender committee, only with L-1 bidder, on prior approval by CPA not below Level-I and the concerned Director in EPC cases, in any of the following exceptional situations, where the rates of L-1 bidder are substantially high as compared to cost estimates: (i) (ii) (iii) The items are proprietary in nature; The bidders have formed cartel ; Sources are limited.

77.3 Negotiations should not be misused as a tool for bargaining with L-1 with dubious intentions or lead to delays in decision-making. Convincing reasons must be recorded by the Tender Committee recommending negotiations. Competent Purchase Authority should exercise due diligence while accepting a tender or ordering negotiations or calling for a re-tender and the time taken for according requisite approvals for the entire process of negotiation and award of order should not exceed 30 days from the date of submission of recommendations. In cases where the proposal is to be approved at EPC level, a maximum of additional 15 days shall be allowed. In no case should the overall timeframe exceed the validity period of the tender and it should be ensured that tenders are invariably finalised within their validity period. 77.4 In cases where a decision is taken to go for re-tendering due to the unreasonableness of the quoted rates, but the requirements are urgent and a retender for the entire requirement would delay the availability of the item, thus jeopardizing the essential operations, maintenance and safety, negotiations would be permitted with L-1 bidder(s) for the supply of a bare minimum quantity, subject to acceptance by the bidder. The balance quantity should, however, be procured expeditiously through a re-tender, following the normal tendering process, after due examination to see whether review of specification, scope of work and tender conditions is required in future, to bring more competition. 77.5 Where it is required to have more than one source of supply (due to critical or vital nature of the item), it is mandatory to pre-disclose the ratio of splitting the supply (in accordance with prevailing instructions, so as to award maximum quantity to the L-1 bidder) in the Bid Evaluation Criteria, after due deliberation in Tender Committee. This must be followed scrupulously.

77.6 After due processing, if it is discovered that the quantity to be ordered is far more than what L-1 alone is capable of supplying (in tenders where bidders are allowed to quote part quantities) and there was no prior decision to split the quantities, then the quantity being finally ordered should be distributed among the other bidders in a manner that is fair, transparent and equitable as given below: (i) If the requirement of tender quantity cannot be met by L-1 bidder, negotiations will be carried out with the approval of Competent Purchase Authority (CPA). To expedite the process of negotiations, all other acceptable bidders will be advised to submit their confirmations in sealed envelopes, to match their rates with those of evaluated L-1 bidder. (ii) Sealed covers will be opened in the order of ranking originally established and in the presence of bidders representatives who choose to be present. Bidders who match their prices with the L-1 bidder would be considered for award on basis of their original ranking and to the extent of quantity / number offered by them. Opening of sealed cover will be stopped when the total quantity requirement is met. 77.7 Counter-offers to L-1, in order to arrive at an acceptable price, shall tantamount to negotiations. However, any counter-offer thereafter to L-2, L-3, etc., (at the rates accepted by L-1) in case of splitting of quantities (as pre-disclosed in the tender as per para 77.5 above or due to limted capacity of L-1 bidder as per para 77.6 above) shall not be deemed to be a negotiation. 77.8 If L-1 bidder backs out, there should be re-tendering in a transparent and fair manner. The Competent Purchase Authority may in such a situation call for Limited or Short Notice tender, if so justified in the interest of work, on the basis of examination and recommendation by Tender Committee. 77.9 For the cases valuing upto Rs 5 lacs also, convening of tender committee is necessary for recommending and conducting negotiations. The Tender Committee in such cases shall consist of one officer each from MM, Finance and Indentor at one level below Competent Purchase Authority. The recommendations of said Tender Committee shall require the approval of Competent Purchase Authority. 77.10 In respect of cases where World Bank Assistance procedure prescribed by World Bank will be followed. is involved, the

POWERS

78. 78.1

Powers for various activities Competent Authority for approving various activities shall be as defined below: Activity(ies) (MM/45/2009 dated 14.10.2009) Competent Authority

Sl.

(i) Scope of Work, Technical Specifications, proposed Technical BEC, Technical part of Special Conditions of the Contract, change of Specifications as a sequel to Pre-bid conference.

Sanctioning Authority. Concerned Level-I executive shall have full powers, including cases falling under powers of Director/EPC

(ii) Pre-Qualification Criteria (PQC) for Level-II- For tenders valuing between Limited Tender and the list of bidders Rs. 5 lakhs to Rs. 25 lakhs. who meet the PQC. Level-I For tenders valuing between Rs. 25 lakhs to their purchase powers under MP-4(b). Concerned Director shall have full powers, including cases falling under powers of EPC. (MM/38/2009 dated 24.04.2009) 2 Invitation of Tenders including the type of tender to be invited, BEC, Final Special Conditions of Contract (which are to be enclosed with the tender), Changes in BEC and other tender conditions (other than standard conditions) as a sequel to pre-bid conference. Competent Purchase Authority (CPA). Concerned Director shall have full powers, including EPC level cases.

Note: Any proposed provisions, which are in conflict with the existing policy/ procedure/ PMC instructions, will require approval of EPC.. 78.2 The Head of Materials Management of concerned Business Group and the other Materials Management Officers are classified as Indenting Officers for the recoupment of stock items provided the minima, re-order and maxima limits have been fixed by duly constituted board.

(MM/56/2010 dated 11.10.2010) 78.3 Purchase Powers: Accept a tender for the procurement of goods (single item or a group of items as defined in para 64 of MM Manual) / Services / turnkey projects contracts and offer is technically and commercially accepted: 78.3(a) Against open tender: Authority EPC and Functional Director Below Board level 78.3(b) Against Limited tender: Authority EPC and Functional Director Below Board level Extent of power As per item F2 of BDP-2009 As per item MP4(b) of BDP-2009 Extent of power As per item F1 of BDP-2009 As per item MP4(a) of BDP-2009

78.3(c) (i) Procurement of Proprietary Articles on PAC (Proprietary Article Certificate) Basis: Authority EPC and Functional Director Level-I Extent of power As per item F4 of BDP-2009 As per item MP4(c) (i) of BDP-2009

78.3(c)(ii) Procurement of spares / standby equipment and hiring of equipment / services and award of work from OEM/OES: Authority EPC and Functional Director Level-I 78.3(d)(i)-a reliability: Extent of power As per item F-3(a) of BDP-2009 As per item MP4(c) (ii) of BDP-2009 Against Nomination, in case of operational urgency and/or

Authority EPC and Functional Director

Extent of power As per item F-3(d) of BDP-2009

78.3(d)(i)-b Against Nomination, in case of operational urgency subject to reliability: Authority Extent of power

Level-1

As per item MP4(d)(i) of BDP-2009

78.3(d)(ii) Against Nomination for hiring of consultancy / domain expert / professional agencies. Authority EPC and Functional Director Level-I 78.3(d)(iii) events: Authority Level-I 78.3(d)(iv) induction: Extent of power As per item F-3(b) of BDP-2009 As per item MP4(d) (ii) of BDP-2009 Against Nomination, in case of functional exigencies / special

Extent of power As per item MP4(d) (iii) of BDP-2009 Against Single tender on Nomination basis, for Technology

Authority EPC and Functional Director

Extent of power As per item F-3(c) of BDP-2009

78.3(d) (v) Acceptance of Tender Committee recommendations when majority views of Tender Committee are not acceptable or when the recommendations are equally divided (in case of even number of members) When majority recommendations of TC are not acceptable or when the TC recommendations are equally divided (in case of even number of members), procedure as per para 68.2 shall be applicable. 78.3(e) Provision deleted vide MM/56/2010 dated 11.10.2010) 78.3 (f) Acceptance of offer other than lowest technically acceptable offer (where Tender Committee is not held) For tenders of value of less than Rs. 5 lakhs purchase shall be finalised with concurrence of Finance if the lowest technically acceptable offer is not operated. (MM/8/2003 dated 02.04.03) (MM/56/2010 dated 11.10.2010) 79 Placement of development order on a domestic bidder

Powers for approving placement of development order are as under: Authority Executive Procurement Extent of powers Committee Full powers

(EPC) Functional Director (Authority: Item F6 of BDP-2009)

Upto Rs. 1 crores in each case

Provision at 79.2 and 79.3(i) deleted vide MM/56/2010 dated 11.10.2010) 80. MISCELLANEOUS POWERS MANAGEMENT OF OFFICERS OF MATERIALS

(MM/56/2010 dated 11.10.2010) 80.1 Freight for materials carried (i)Ocean, River, Railway, Road and Air (where Air is cheaper or more suitable than alternative modes) Authotiry i. Level-III (not below E-5) Extent of powers As per actuals

(ii) Air (including airlifting of imported material) in urgent cases Authority i. Level-I Extent of powers As per actuals

Note: Above powers ((i) & (ii) above) appearing under RL2 of BDP-2009 (powers for Logistics) can be exercised by MM section also. (Authority: Item RL2 of BDP-2009) 80.2 Wharfage & Demurrage (Supply Material transported by ship/road/rail/Air) Authority i. Level-II (not below E-6) Level-III (not below E-5) Notes: 1. Above powers appearing under RL5 of BDP-2009 (powers for Logistics) can be exercised by MM section also. 2. Quarterly Report of Wharfage & Demurrage cases above Rs.5000 submitted to the concerned Level-1 executive. (Authority: Item RL5 of BDP-2009) to be Extent of powers Full powers Upto Rs. 5,000 for each case

80.3 Powers for sanctioning handling and transportation charges at Railway Station, Stores Yards and Ware-houses Sl. No. I) ii) Authority Executiv e Level E-3 E-2 Extent Powers of Remarks

Dy. Manager(MM) Sr.MM Officer

As per Terms i) Efforts shall be made to of contract enter into annual rate Contracts with suitable agencies wherever the handling and transportation jobs are of recurring nature and departmental facilities are not adequate. ii) Where such a contract is not available, the powers shall be exercised by the highest available officer at the level of Sr. MM officer and above. iii) Financial concurrence will be necessary.

(Authority : Item No. A.8.8 of The Delegated Powers, 1994) 80.4 81. 82. Provision deleted vide MM/56/2010 dated 11.10.2010) Provision deleted vide MM/56/2010 dated 11.10.2010) POWERS FOR PURCHASE BY NEGOTIATIONS In case the purchase has to be effected by negotiations before placing order, the procedure laid down in para 77 will be followed. (MM/56/2010 dated 11.10.2010) 83. SIGNING OF SUPPLY ORDERS / CONTRACTS.

Signing and placement of supply order for stores, spares and capital items and for signing contracts.

Authority

Extent of powers

Level-I / In-charge MM and Other MM Executives.

As per item MP5 of BDP-2009

Note: The signing powers as above will be exercised subject to authorized signatory satisfying himself of the following conditions: i. ii. iii. iv. Proper expenditure sanction for the procurement exists. The purchase has approval of competent purchase authority Agreement /Contract is placed on standardized/approved terms and conditions In case a tender results in multiple Orders/ Contracts, signing powers will be decided based on the sum total of all the individual orders/ Contracts. EXERCISING OF POWERS OF MATERIALS MANAGEMENT DISCIPLINE BY OFFICERS DESIGNATED IN THE DISCIPLINE OF MECHANICAL / ELECTRICAL / CIVIL ETC. Officers designated in the discipline of Mechanical / Electrical / Civil etc. but posted in Materials Management discipline may exercise powers of officers of Materials Management discipline provided such officers are posted with prior approval of Director(Tech). 85. 85.1 OBSERVANCE OF LAID DOWN PROCEDURE The purchase powers are exercisable only if the purchase is effected subject to the observance of normal procedure for open / limited tenders. No tender need be invited when purchase is made against a Rate Contract of DGS&D. If in any case it is considered desirable to invite tenders from a few selected firms, the prescribed procedure will be followed. RELAXATION IN CONDITIONS OF TENDERS All contracts should normally be entered into on the standard form prescribed for making purchases for the ONGC except where existing clauses are to be modified or special clauses added for compliance by the suppliers. (Provision deleted, MM/10/2003, circular no. 26/2003 dated 06.05.03)

84.

85.2

86 86.1

86.2

(MM/56/2010 dated 11.10.2010) 86.3 Relaxation in Standard terms and conditions of supply order / contacts for purchases of Proprietary items, procurement of materials/ Hiring of Services and award of work from OEM/OES.

In case of purchases of Proprietary items, procurement of materials/hiring of services from OEM /OES, the Competent Purchase Authority, not below Level-I, will be empowered to relax standard terms and conditions of supply orders / contracts provided the OEM / OES/ manufacturer of proprietary items does not accept such terms and conditions. It must be ensured that the items are consumed within one year from the date of receipt. (Authority: Note under Item MP4(c)-ii of BDP-2009) 87. POST CONTRACT ISSUES (MM/33/2008 dated 29.04.2008) Post contract issues (Post LOA/NOA issues, where ever unconditional LOA/NOA is placed in line with the agreed tender / bid conditions) will require to be deliberated by the tender committee (for cases exceeding Rs 5 lakh) and submitted for approval of the Competent Purchase Authority. Irrespective of the type of tender/mode of purchase or the value of individual Purchase Order/ Contract, all the post contract issues regarding amendment in condition(s) of contract / supply order etc will be approved by the same authority who approved the award of contract, subject to observance of guidelines and procedure on the subject. For cases approved by EPC, Concerned Director, Director(Finance) and C&MD will approve post contract issues. 88. ACCEPTANCE OF SPECIFICATIONS MATERIAL IN DEVIATION TO SPECIFIED

Normally materials with deviation from order specifications will not be accepted. However, in exceptional circumstances, materials under deviation in specification may be accepted on the recommendations of a committee consisting of one representative each from Materials Management, Finance and Indentor (Chemistry in case of chemicals) at the level next below the level who is empowered to approve the rates for sub-standard materials. The rates for sub-standard supplies will be approved in each individual case by the authority next higher to one in whose powers the purchase falls. In all such cases, the quantum of price reduction will be determined after taking into account the loss in utility as assessed by the indentor.

PLACING / TERMINATION OF SUPPLY ORDERS / CONTRACTS


(INCLUDING SERVICE CONTRACTS)

89. 89.1

MARGINAL ADJUSTMENT IN SUPPLY ORDERS Marginal adjustment upto 5% of the quantity indented may be made by the Materials Management officer without reference to indentor or finance, to fit the supply order within the pack units offered by trade provided the increase in cost is not more than Rs. 1000/=. Where no adjustments are to be permitted, the indentor will clearly indicate that only indented quantity and nothing more or less is to be purchased. PLACING/TERMINATION OF SUPPLY ORDERS / CONTRACTS

89.2

90.

90.1.1 Placing of supply orders / contracts (MM/42/2009 dated 08.07.2009) 90.1.1 After the decision has been taken to place order / contract on a particular firm, necessary LOA/NOA will be placed on the firm immediately. In EPC level cases, LOA/NOA is to be issued on the same day or latest by the next day of receipt of decisions of EPC meeting. (MM/56/2010 dated 11.10.2010) 90.1.2 For purchases upto Rs. 5.00 lakh in each case, the purchase order will be placed on STR-40. No covering supply order need be issued for petty purchases of consumable items upto Rs 10,000/-. 90.1.3 For purchases exceeding Rs.5.00 lakh the following information / clauses must invariably be incorporated in the supply order:i) ii) iii) iv) v) vi) vii) viii) ix) x) Name, address, telegraphic address of the firm. Consignee Date of Delivery Place of Delivery Despatch instructions Packing Inspection to be carried by Place at which to be tendered for inspection Bill to be made in the name of Cost debitable to Head

xi)

Payments through Bill in triplicate a) By the b) During the year.

xii) xiii) xiv) xv) xvi)

Supply Order Code (9 digit alpha numeric code). Vendor Code (6 digit alpha numeric code). Mode of transport. Insurance instructions (if required) Terms and conditions of the supply order (to be enclosed separately as annexure to the order). The schedule of items ordered to be shown separately as annexure to the order on the following proforma to be prepared as per guidelines contained in para 161:of items ordered under supply
Description of items with full specifications makers Pt. No./ Drg. Ref. Unit of measure s

xvii)

Schedule
Sl. No

order No........ dated........


Ordered quantity Ordered rate CIF/FOB FOR etc. Value Delivery date

ONGC Material Code No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

Extra Charges ____________________________________ Total value of order (FOB/FAS/CIF/FOR)etc. In figures_____________________________ In words _____________________________ SIGNATURE Name Designation _____________________ ____________________ _____________________

(xviii) Distribution statement of quantities ordered consignee-wise to be shown separately as annexure to the supply order on the following proforma:Distribution statement of quantities ordered consignee wise under supply order No..................dated..............

Sl. No order

of Qty. For Ultimate Calcutta Consignee Port 2. CL 3. 4. 5

Qty. For Ultimate Mumbai Consignee Port 6. EM 7. 8. 9.

Total

1. Code for computer purpose only for Example

10.

40

20

20

10

10

50

Signature ________________ Name ________________ Designation _______________

N.B.

Under Col.3,4,5,7,8 &9 Project Codes of Ultimate Consignee be indicated. Under Col.2 and 6 code for port consignee be indicated. Distribution of quantity be given under project consignee code. Information for Computer purpose only

Vendor Code No.

Extra Code Charges No. details

Amount Covering against indent each extra Nos. (251) charges code

............. .................... .................. ................. ................. ............. .................... .................. ................. ................. .. .... .... .... .... Expected Currency Exchange Advance date of (254) Rate (254) (254) payment (252) (Col.49to50) (Col.51to58) (Col.59to70) (Col.71to80) Amount 1. Payment ____________ 2. Payment _____________ 3. Payment _____________

Code for L.C. Code for condition 252 supply col.77 order condition 252 Col. 78 ...................... ................. ...................... ................. .... .. Section Order No. (254)

Date ____________ ____________ _____________

Signature____________ Name ______________ Designation__________

90.1.4 It should be ensured that all items of supply orders bear a continuous numerical Sl.No. and in no case alpha numeric numbers as 1(a)/(b) are used. In case of annexures to supply orders also continuous Sl.Nos. should be maintained and fresh Sl.Nos. for each annexure should not be used. 90.2 Termination of contract / supply order Competent Purchase Authority for cases upto their purchase powers and CMD for Executive Procurement Committee cases will have full powers to cancel the contract / supply order in the event(s) indicated in sub-paras (i) to (iv) below. Provisions of paras 56.2 and 88 on Liquidated Damages / Failure and Termination and acceptance of materials in deviation to specified specifications respectively will be kept in view while exercising powers in respect of sub-paras (i) and (ii) below:i. ii. Specified delivery schedule is not adhered to Laid down specifications are not adhered to or when the performance of the contract is un-satisfactory. Major contractual terms and conditions are violated Insolvency.

iii. iv. 91. 91.1

DISTRIBUTION OF COPIES OF SUPPLY ORDERS The distribution of supply order copies will be made as under:i. Firm (two copies - one copy has to be received back duly acknowledged by the firm). These will be sent under registered forwarding letter. Consignee Port Consignee and Logistic Deptt. Headquarters (for imported materials). Materials Management (Stock) of consignee samples, if any. alongwith approved

ii. iii.

iv.

v. vi. vii.

Finance & Accounts Officer concerned - two copies F&AO (CP) - three copies (for imported materials). Indentor (P&E/ Tech. Deptt. concerned as well as Regional Head when requirements are consolidated at Headquarters)

viii. ix. x. xi. xii. 92.

Quality Assurance Department Kardex Section EDP Section Regional Materials Management (stock) of the consignee Office Copy

FOLLOW UP OF SUPPLY ORDERS After the supply order is issued, the Purchase Authority concerned will follow up the order so that supply is received in time.

(MM/56/2010 dated 11.10.2010) 93. SERVICES / WORKS CONTRACTS Except the following type of services / works, all the services or works contracts such as charter hiring of vessels, Helicopters, Heli Rigs, Seismic / Geophysical Survey, etc will be handled through Materials Management: (i) Catering, house keeping and other general services for value upto Rs.10 Lakh in each case, (ii) Empanelment of hotels (iii) Empanelment of hospitals / Doctors. (iv) Land acquisition. (v) Empanelment of advocates. (vi) Hiring of goods and passenger transport upto Rs.10 Lakh in each case. (vii) Contract services including AMCs, Grass Cutting etc., upto Rs.10 Lakh in each case. (viii) Works as defined in works manual below Rs. 100 Lakh. (ix) Electrical works pertaining to building construction and all civil works irrespective of value. (x) Repairs / AMC from OEM / OES up to Rs. 10 Lakh in each case. (xi) Any specialized job like consultancy, appointment of auditors, certification agencies, etc up to Rs 25 Lakh in each case. (Authority: Note No. 17.15 under Appendix-I of BDP-2009)

EXTENSION IN DELIVERY PERIOD AND LEVY / WAIVER OF LIQUIDATED DAMAGES

(MM/25/2006 dated 15.09.2006) 94. 94.1 EXTENSION OF DELIVERY / MOBILIZATION / COMPLETION DATE While granting extension in delivery date in terms of para 94.3, the following points should be taken into consideration: i. Has indentor specifically stated that no extension of time should be allowed or that he should be consulted before such an extension is allowed? If the contract has been entered into at higher prices because of the assurance of earlier delivery, but the supplier has failed to deliver the goods within the agreed schedule, in such cases the amount paid by way of such price preference should be recovered from the supplier. Whether supply can be arranged easily at cheaper rates from an alternative source and in this case whether the indentor can reasonably wait to take advantage of this or of any downward trend in prices generally. (Provision deleted and succeeding paras re-numbered.) All extensions are to be granted subject to the right of ONGC to claim a reduction in prices on account of reduction in statutory duties/taxes etc. which may take place during the extended period of delivery. However, increase in prices during extended delivery period on account of increase in statutory duties/taxes etc. admissible under change in law clause shall be granted, only if extension is due to delay on the part of ONGC. Provision deleted.

ii.

iii.

iv. iv.

v. 94.2

When it is decided to extend the delivery period subject to the recovery of liquidated damages for delay in supplies, contractor must be warned in writing. Merely stating that extension is granted without prejudice to the rights of purchaser under the terms and conditions of contract, is not enough.

(MM/25/2006 dated 15.09.2006) 94.3 Extension of Delivery / Mobilization / Completion date: Following procedure shall be followed for grant of extension of Delivery / Mobilization / Completion date: (i) In cases where the delivery/work is not likely to be completed within the contracted schedule and cancellation/termination of contract is not contemplated, the time of delivery/completion should be suitably extended as per instructions given hereunder, before the expiry date of mobilization/delivery/completion, in order that

the contract shall continue to be in force and the contractor remains liable to execute the contract. (ii) Any extension due to entire delay being solely on account of contractor / supplier will be decided by CPA, on recommendation by the indentor and MM. This extension will be with levy of LD as per the terms of contract, provided the indentor confirms continued existence of the requirement. No tender committee is required in this case. No financial concurrence is required. Normally, such extension will be communicated to the contractor in the format given at Annexure-A-1. For cases falling under the powers of EPC such extension can be granted with the approval of concerned Director. (iii) Any extension, where delay either in part or full may be on account of ONGC, will be granted by the Competent Purchase Authority, on recommendation by the Indentor and MM, with ONGC reserving right to levy LD, provided the indentor confirms continued existence of the requirement. No tender committee is required for such decision. No financial concurrence is required. Normally, such extension will be communicated to the contractor in the format given at Annexure-A-2. For cases falling under the powers of EPC, such extension can be granted with prior approval of concerned Director. The amount of LD shall be withheld on the proportionate basis, by finance, from the bills of supplier/contractor, while releasing payments. On completion of delivery/work, a joint statement duly signed by both ONGC and Contractor will be prepared (User at one level below CPA shall be competent to sign such statement. However, the concerned Level-II Officer of indenting department shall have full powers and shall be competent to sign such statement for all cases where CPA is L1 and above), clearly indicating the extent of delay, the reasons therefore and the party accountable for the delay. Proposal for time extensions shall then be considered by the Competent Purchase Authority for approval on recommendation by the Tender Committee regarding quantum of LD for the delay attributable to the contractor. For cases falling under the powers of EPC, time extensions can be granted with the approval of concerned Director, if (i) the LD rate is as per provisions of Supply Order/Contract and (ii) delay attributed to the contractor is not condoned either in part or full. (iv) Notwithstanding anything stated in the foregoing paras, as a rule, no extension should be given for a period of more than one year beyond the originally scheduled date of delivery/mobilization/completion date. In case the extension of more than one year is unavoidable, the approval of concerned Director must be obtained. (v) Normally the cases involving extension due to delay on account of contractor/supplier shall be considered with levy of LD at the rate as per contract terms and without condoning any delay attributed to the contractor. However, in compelling circumstances beyond the control of supplier/vendor or where the past record of vendor/supplier is excellent in terms of meeting their commitments, a holistic view may be taken for considering waiver of Liquidated Damages. Any proposal, with full justifications, for waiver of LD rate in such cases, and/or

condonation of delays attributed to contractor shall require the approval of Competent Purchase Authority (EPC, for EPC level cases), on the recommendations of Tender Committee. 94.4 (Provision deleted vide MM amendment No. MM/25/2006 dated 15.09.2006)

(MM Amendment No. MM/20/2005 dated 10.05.2005) 94.4.1 In LSTK projects where delay is solely attributable to ONGC, the reasons for delay should be jointly recorded in writing by the designated Project Coordinator from ONGC and authorized representative of Contractor. Under such circumstances, Competent Purchase Authority (CPA) may grant extension of completion period to the extent of such delay is attributable to ONGC, without imposing liquidated damages. In cases where EPC is CPA, Director concerned may approve such proposal. (MM/25/2006 dated 15.09.2006) 95. EXTENSION IN DELIVERY PERIOD AND LIQUIDATED DAMAGES IN CASE OF DEVELOPMENT ORDERS

95.1 The Competent Purchase Authority will have powers to grant extension in delivery period upto one year of the expiry of initial delivery period.

95.2

Depending upon merits of the case, any extension in delivery period beyond one year of the expiry of initial delivery period will be granted with approval of Competent Purchase Authority not below the concerned Director. Instructions laid down below will be followed: i. The Liquidated Damages clause will be incorporated in all Development Orders. ii. Any extension in delivery date without imposing liquidated damages, will be granted with prior concurrence of Finance. iii. Time lost due to delay on the part of ONGC will be taken into consideration and stipulated delivery period extended correspondingly.

95.3

(MM/25/2006 dated 15.09.2006) 96. LEVY OF LIQUIDATED DAMAGES FOR DELAYS IN SUPPLIES

96.1 Deleted (MM/25/2006 dated 15.09.2006) and succeeding paras renumbered. 96.1.1 Deleted (MM/25/2006 dated 15.09.2006)

96.1.2 Deleted (MM/25/2006 dated 15.09.2006) 96.1 Quantum of liquidated damages

96.2.1 Deleted (MM/25/2006 dated 15.09.2006) 96.1.1 Spares, chemicals and hardware items L.D. will be imposed on the total value of the order unless 75% of the value ordered is supplied within the stipulated delivery period. Where 75% of the value ordered has been supplied within stipulated delivery period, LD will be imposed on the cost of contract price of delayed supplies. However, where, in the judgement of ONGC, the supply of partial quantity does not fulfill the operating need, LD will be imposed on full value of the supply order. 96.1.2 Construction / Turnkey Project In case where company (ONGC) takes over certain facilities for the envisaged objectives, which can be commissioned and can function independently irrespective of the availability of balance work of the project, ONGC may issue part completion certificate by taking over such facilities without imposing LD. Where such facilities can not be commissioned and can not function independently, LD in that event will be levied on full value of the project. 96.3 Deleted (MM/25/2006 dated 15.09.2006)

(MM/25/2006 dated 15.09.2006) 97. Review of earlier decision In case Competent Purchase Authority finds it necessary to revise his own earlier decision imposing liquidated damages and to waive recovery thereof, he should obtain the approval of the next higher authority for doing so. In charge-MM will however be competent to revise his own earlier decision. 98. Copies of letter authorizing extension of Delivery/Mobilization/Completion date should be endorsed to the following : (i) Indenting Officer (ii) Quality Assurance Department (iii) Consignee (iv) Finance and Accounts Officer (v) Master file.

MUD CHEMICALS

99. PROCUREMENT OF MUD CHEMICALS (MM/30/2007 dated 20.12.2007) 99.1 Schedule for placing handling thereo. indent / purchase orders for chemicals and

99.1.1 User/Indentor shall forward the indent alongwith expenditure sanction and PR for purchase of chemicals to the Materials Management Deptt. by 30th June for the requirements of the subsequent year. Indents should be accompanied with the Corporate specifications of chemical(s) including packing and marking details which have been duly approved by Director(E) and issued by Chief/Head Labs. In the case of low quantity and low value chemicals, proprietary chemicals and new chemicals for which Corporate specifications have not been formulated, the User/Indentor at the concerned work centre (Asset/Basin/Plant/Institute/ Services) can formulate the specifications including the modalities of testing and also the packing and marking details in consultation with Regional/Plant Lab and get the same approved by the concerned Level-I executive of the work centre (Asset/Basin/Plant /Institute/ Services) before forwarding it to Material Management Deptt. alongwith the indent for taking procurement action. 99.1.2 The requirement of the chemicals will be worked out by the User/Indentor at the concerned work centre in accordance with approved plan and procurement will be done by the concerned Materials Management Dept. 99.1.3MM Deptt. shall process the tenders expeditiously and ensure that the orders are placed well in time to ensure timely availability of chemicals. MM Deptt. shall also regularly follow-up with the supplier for timely supplies. However, for delayed supplies, Liquidated Damages clause shall be enforced as per the purchase order conditions. 99.2 Classification of chemicals The chemicals are classified into two main following categories:(i) Commodity Chemicals This group will consist of chemicals which are used in various other industries besides oil exploration and exploitation. (ii) Speciality Chemicals These chemicals are mainly developed and manufactured in bulk for oil exploration purposes and are used mainly by the oil industry.

99.3. Procurement method 99.3.1 Commodity Chemicals The procurement of all mud chemicals will be effected only through manufacturers / their authorised dealers by invitation of Bids from all the Registered Manufacturers whose products have been found satisfactory by ONGC laboratories / ONGC approved laboratories including CSIR laboratories / Central Govt. Test Houses. Bids will be invited for supplies in original packings of manufacturers only. Authorised dealers will be asked to submit offer alongwith valid authorisation certificate from the manufacturer. The list of approved indigenous manufacturers will be updated every year after consulting the D.G.T.D. Hand Book on chemicals and Industrial Directories. The offers must accompany following documents:i. Industrial license of SSI certificate indicating annual capacity for the item quoted.

ii. Chartered Accountant's certificate giving last year's production / turn-over for the item. iii. A laboratory Test Report of latest production batch of the item quoted, not older than one year from the date of tender opening, from the laboratories as indicated in para 99.3.1 iv. Certificate from the manufacturer (even if the item is being purchased through the authorised dealer) that the material being offered / supplied is of the same standard and quality as the one for which the laboratory certificate has been attached. v. Income Tax Clearance Certificate. vi. Sales Tax Registration Certificate. vii. Earnest Money / Bid Bond / Bid Security as per instructions contained in para 57. 99.3.2 Laboratories of repute in the country for testing of chemicals required by ONGC will be inspected and those found upto the mark approved by the authority(ies) so decided from time to time for this purpose by Director (Drilling) in consultation with Director (Exploration) for different chemical(s) / group(s) of chemicals. Capacity and capability of laboratories before enlistment will invariably be verified. Test reports of the samples not found up to the mark will be notified to the concerned manufacturer / their authorised dealers so as to enable them to improve their products. 99.3.3 An advertisement will be released in the leading news papers every alternate year by Materials Management, Drilling Business Group, Headquarters, inviting prospective bidders to get the samples of their

products tested from any laboratory as indicated in para 99.3.1 for obtaining Laboratory Test Report for offering their products against ONGC requirements. 99.3.4 No sample, whatsoever, will be asked alongwith the offers. Order on the technically acceptable and commercially lowest offer will be placed. 99.3.5 Payment 100% payment will be made subject to following conditions:a) Prior satisfactory inspection and proof of despatch. (MM/52/2010 dated 03.05.2010) b) For orders (including Development Orders), security deposit / performance bond @ 7.5% of the value of order in all cases where ordered value exceeds Rs 1 lakhs. c) The goods are insured by supplier for losses, damages, breakages and shortages during transit at their cost and insurance cover in the name of ONGC sent alongwith documents ; and d) Negotiations of documents through State Bank of India. 99.4 Speciality chemicals

99.4.1 Speciality chemicals are further classified into two categories imported and indigenous. 99.4.2 For these chemicals an identical approach will be made as in the case of commodity chemicals for inviting tenders and documentation. 99.4.3 Speciality chemicals are basically sold under trade names. Therefore, for the induction of competitors for better competition and greater flexibility a list of suppliers whose performance has been found satisfactory during the past will be drawn. 99.4.4 Laboratories of international repute for testing of chemicals required by ONGC will be approved by the authority(ies) so decided from time to time for this purpose by Director(Drilling) in consultation with Director(Exploration) for different chemical(s) / group(s) of chemicals. Capacity and capability of these laboratories before enlistment will invariably be verified. Test reports of the sample not found upto the mark will be notified to the concerned manufacturer / their authorised dealer so as to enable them to improve their products. 99.4.5 No sample will be called alongwith offers from the Bidders whose performance has been found satisfactory during past and from the Bidders

whose samples have been approved by any laboratory as indicated in para 99.4.4. Offers from suppliers not falling under the above criteria will not be considered. 99.4.6 The following information will be provided by the Bidders alongwith their offers: i. Laboratory Test Certificate not older than one year from the date of tender opening from any of the specified laboratories.

ii. Full operating conditions. iii. Product application methods. iv. Performance of the product and what it is expected to achieve both in the laboratory and in the field. (MM/12/2003 dated 09.06.03) 99.5 For imports of chemicals of order value exceeding Rs.1.00 crore, inspection, testing and bonding before dispatch will be done by a Chemist of ONGC at supplier's end ; the chemist will be accountable for proper quality check as well as bonding. . For despatch of material by the supplier in the presence of team of officers deputed abroad for inspection, testing and bonding, each case will be decided on merit after taking into consideration the position of availability of ships etc. Suitable provisions will be made in supply order reserving ONGC's right to ask the supplier to despatch material in the presence of the Chemist deputed abroad for inspection, testing and bonding. Supplies valuing upto Rs.1.00 crore will be tested and inspected on receipt before taking the material on charge. This process will not take a period of more than 30 days. No Chemist for sampling and bonding in these cases will be detailed. However, the supplier will be asked to give a certificate to the effect that the product in question has been tested by the ONGC approved laboratory. Each packing will bear mark of the manufacturer as well as name of the Chemical, Lot No. / Batch No., Date of manufacture and supply order number. 99.6 Sampling, bonding and debonding of bulk materials

99.6.1 Before despatch of material, sampling / bonding of each lot of the product including Barytes, CMC, PPD and OWC etc. will be done at firm's premises by a Chemist; the chemist will be accountable for proper quality check as well as bonding. The Chemist will ensure that supply of chemicals is in manufacturer's original packing as specified in the supply order. Each bag / drum of the product should bear mark of the manufacturer, name of the chemical, Lot No, Batch No., date of manufacture and Supply order No. Testing of the samples will be carried out in the ONGC laboratories / ONGC approved laboratories as per para 99.3 / 99.4. The Barytes sampling and bonding will be of 500 MT lot at a time.

99.6.2 Total four bulk samples will be drawn during sampling / bonding. The bulk samples taken at supplier's premises will have the seal of both, the party and ONGC. (MM Amendment no. MM/22/2006 dated 28.04.2006) 99.6.3 Two samples will be sent to lab. for test, one sample will be given to supplier and the fourth one is to be retained with Chemistry Deptt. Chemistry Deptt. Shall forward the sample directly to the lab. and only send the intimation to the Purchase Deptt. regarding forwarding of samples to the lab. for testing. In all cases where sample has passed the test and there is no dispute, the sample will be destroyed after one month from the date of receipt of corresponding bulk consignment at the Project. In case of any dispute, these samples shall be retained till resolution of said dispute. Destruction / nondestruction of such samples shall not override the suppliers obligations under warranty / shelf life or any other supply order conditions. 99.7 Rejection of Bulk Sample In the event of bulk sample getting rejected, the supplier will be asked to reprocess it and offer again. However if the product fails even second time, the supplier will have the option to get it tested on payment basis in his presence from the same laboratory where it was tested earlier on following conditions:a) b) ONGC will refund the testing fee if the earlier results or found faulty. The supplier on his part will be debarred from participating in ONGC tenders for a period of one year if earlier results are confirmed.

99.8. Debonding and despatch of mud chemicals 99.8.1 Barytes mines are mainly located in well defined area of Andhra Pradesh. As a result, pulverising units of the suppliers are located in this area. To avoid problems due to non-availability of wagons, it is desirable that a warehousing capacity of around 10,000 tonnes is created by ONGC at a logistically optimal point in between Kadappa / Kudur where loading facilities are available and in due course a Railway spur is developed next to the sheds for direct loading.

(MM)/12/2003 dated 09.06.03) 99.8.2 Debonding of materials at supplier's premises will be done by a Chemist; the chemist will be accountable for proper debonding. Despatch of mud chemicals to consuming points will be handled by ONGC personnel or through some contractor and priority accorded so as ensure regular uninterrupted supplies.

99.9

Random Sampling

99.9.1 No random sampling will be done at the destination. However in case random sampling becomes necessary due to complaint from the user about substandard supply then sampling will be done on the basis of specific approval of the Project Head / Regional Director concerned. Retesting in such cases will be got done from the same laboratory where sample of bulk supply was tested earlier. For this, suitable provision for right of rejection at destination and replacement of rejected materials free of cost will be made in supply order. 99.9.2 It will be a condition of the contract that supplies not found as per requirement at destination will be replaced free of cost by the supplier.

99.10 Purchase from manufacturers / Public Undertakings 99.10.1 As far as possible purchase of barytes etc. should be made directly from the mine-owners / Pulverisers / Manufacturers or through their authorised dealers only and a stipulation to this effect should be made in the NIT. 99.10.2 Barytes is now being produced by Public Undertakings. Efforts should be made to procure such items from them as also from private enterprises of repute as per directives issued from time to time with a view to ensure supply of quality products if their rates are competitive. 99.11 Earnest Money / Security Deposit Guidelines stipulated in para 57 will be followed. 99.12. Substandard products 99.12.1 Information should be exchanged with all Purchase Centres within ONGC about the instances immediately where supplies of sub-standard product / defective material have been noticed so that further dealings with such firms are discontinued. 99.12.2 Dealing with such suppliers whose products have been found substandard should be banned after following existing procedure for banning business dealings with the firms. 99.12.3 The Projects should maintain sufficient stocks of mud chemicals to meet any emergency arising out of supply of sub-standard material. Sufficient stocks should be maintained to last till such time fresh supplies are received which should be specified by User Deptt.

99.13

Third party inspection for accepting bulk supplies of mud chemicals from abroad. In case of bulk supplies of mud chemicals from abroad, if situation so warrants, third party inspection may be resorted to with the approval of Director concerned and accordingly suitable provisions for third party inspection will be made in supply orders in case of bulk supplies of mud chemicals from abroad.

99.14 Procurement of Barytes and C.M.C. 99.14.1 In respect of items like CMC and barytes where ONGC / OIL are the only or major consumers, in order to keep up the competition and also to ensure availability of the vital materials at the Projects, it is essential that orders should be placed on more than one bidder. While taking a decision to award contract, following factors should be essentially kept in view:i. ii. The capacity of the bidders. Past performance of the bidders. While assessing past performance it should be ensured that a supplier does not get penalised because of working constraints of ONGC, particularly with regard to the time consumed in sampling and bonding. by the

99.14.2 Subject to foregoing, following guidelines should be followed purchasing authority with regard to distribution of quantity. A) CMC

If there are less than three acceptable bidders, then 75% should be ordered on lowest bidder and 25% on the second lowest provided he matches the rates with the lowest. If there are three or more acceptable bidders then distribution should be 60% on the 1st lowest, 20% on 2nd lowest and 20% on the 3rd lowest provided 2nd and 3rd lowest bidders match the rates of the lowest bidder. B) i) Barytes If tendered quantity is upto 15,000 MT The order should be given to the 1st lowest bidder subject to his capacity and suitability. ii) For tendered quantity exceeding 15,000 MT but below 50,000 MT The order should be given to a minimum of three bidders with the lowest bidder getting 60% of quantity subject to his capacity limitations. In case more than one bidder is found suitable and acceptable for supply from one and the same grinding mill / premises then the order on

those bidders should be added and combined quantity should be taken into account for the 60% limit. The remaining quantity should be distributed i.e. 20% each to the 2nd and 3rd lowest bidder subject to their capacity. iii) Quantity from 50,000 MT to 1,00,000 MT The order should be given to the minimum of five bidders. The 1st lowest bidder should get 30000 tonnes(60% of 50,000 tonnes) subject to his capacity and suitability. For tendered quantity exceeding 50000 MT the 1st lowest bidder should get 50% quantity subject to his capacity and suitability. The remaining quantity should be equally divided amongst the remaining four bidders or more if some more acceptable bids exist, subject to their matching the price with the 1st lowest bidder and subject to their capacity. iv) For tendered quantity exceeding 1,00,000 MT The order should be given for 50% quantity to the 1st lowest bidder subject to his capacity and suitability. The remaining quantity should be equally divided amongst the remaining six bidders, subject to their matching the price with the 1st lowest bidder and subject to their capacity and suitability. v) The above limit of minimum of three or more bidders has to be taken as a guideline rather than taking it as a hard and fast rule. Each case should be decided on merit.

MISCELLANEOUS

100.

VENDOR RATING

100.1 Once the orders are placed and executed, vender rating should be carried out by concerned Material Management. For rating the vendors the factors like past performance, capacity and capability should be taken into consideration. A Format for vendor rating at STR-41 refers. 100.2 The lists of vendors so rated should be circulated to all purchase centres within ONGC and up-to-date records maintained by all concerned. 101. SECURING ADJUSTMENT - FOLLOW UP OF CLAIMS Purchase Section will secure adjustment in all claims preferred with Insurance and with firms for short / damaged supply of material received against the supply order. 102. AMOUNT OF COMPENSATION The amount of compensation recoverable in case of default shall be determined by the conditions of the contract governing the supply. It should be understood that the amount must be limited to what is considered to be reasonable by the appropriate authority in the circumstances of each case and the maximum amount permissible under the terms of the contract need not be claimed as a matter of course. 103. RETIREMENT OF DOCUMENTS FROM BANK The bank documents will be retired by the Accounts Section of the Project / Office concerned. 104. KARDEX SHOWING PROGRESS OF ACTION ON INDENTS

104.1 Kardex Sheets should be maintained in respect of each purchase case showing day to day progress of the case i.e. dates on which:(a) Indents were received (b) Bids were invited (c) Bids received (d) Bids were decided (e) Acceptance of tender was issued (f) Progress of supplies etc. 104.2 The Kardex Sheets must be kept duly filled in and up-to-date so that the position of any case may be known at a glance.

(MM/42/2009 dated 08.07.2009) 105. PERIOD WITHIN WHICH INDENTS ARE TO BE PROCESSED The maximum time limits for various activities under different categories of tenders are prescribed in the schedules, as per details below: Annexures B-I Annexures B-II Tender processing time applicable for Open Tenders Tender processing time applicable for Limited Tenders

As far as possible, all tenders should be processed within time norms prescribed for the respective category of tender. In all cases valuing above Rs 5 lakhs, the concerned dealing officer will indicate in the inner side of file cover the time norm prescribed for each activity, the scheduled date of completion of the activity and actual date of completion. In case of concurrent activities, the date of completion of last activity (among the concurrent activities) should be indicated. In case of delays in completion of any activity, the number of days of delay should be separately indicated alongwith the reasons for delay, if any. The formats for this purpose are appended as Annexure-C-I and C-II. All agendas submitted for approval of EPC and proposals for approval of Directors must also contain such information, tabulated in the prescribed format. In high value cases and in those cases where a large number of bidders are expected to participate, if the actual time required for any particular activity is expected to be more than the time norms specified for the same, extra time can be given for that activity (where it is felt necessary) with the approval of CPA not below L-I (concerned Director in EPC level cases) specifically indicating the reasons for the same. Further, such approval should be obtained prior to initiating the processing of the tender. Accordingly, the Format for reporting tender processing time should also be modified suitably. 106. COMPLAINTS / REPRESENTATIONS - CONSIDERATION OF

106.1 Anonymous representations received in respect of current cases should be ignored. In case a proposal is under consideration of the Tender Committee, then the proper representation received, if any, should be commented upon by the Tender Committee. 106.2 Any complaint or representation received after finalisation of the case should be examined carefully so that corrective action, if any, could be taken in future.

(MM/25/2006 dated 15.09.2006) ANNEXURE `A-1' (Form for extension of delivery date, required due to entire delay being solely on account of contractor/supplier) OIL & NATURAL GAS CORPORATION LTD. No.____________ Sub: Ref: Date___________

Supply order/Contract No._______dated ______ for __. Your letter No. ___________________dated __________.

Dear Sirs, You failed to deliver the entire quantity of materials within the contract delivery period. In your letter under reference, you have asked for extension of time for delivery. In view of the circumstances stated in your above referred letter, the time for delivery is extended from _________to _________. Please note that an amount equal to the liquidated damages for delay in the supply of the materials after the expiry of the contract delivery period shall be recovered from you as mentioned in clause ________ for the extended period, notwithstanding the grant of this extension. 2. The above extension of delivery date shall also be subject to the following further conditions: a) that no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, sales Tax or on account of any other tax or duty leviable in respect of the materials specified in the said supply order which takes place after ___________ shall be admissible on such of the said materials as are delivered after the said date; and b) that notwithstanding any stipulation in the contract for increase in price on any other ground, no such increase which takes place after _________ shall be admissible on such materials as are delivered after the said date; c) but, nevertheless, the purchaser shall be entitled to the benefit of any decrease in price on account of reduction in or remission of Customs Duty, Excise Duty, Sales Tax or on account of any other tax or duty, which takes place after the expiry of the above mentioned date namely __________. 3. You may now tender the materials for inspection in terms of this letter. Materials, if any, already tendered by you for inspection but not inspected, will now be inspected accordingly. Yours sincerely,

(MM/25/2006 dated 15.09.2006)

ANNEXURE `A-2'

(Form for extension of delivery date, where delay, in part or full, is on account of ONGC) OIL & NATURAL GAS CORPORATION LTD. No.____________ Sub: Ref: Date___________

Supply order/Contract No._______dated ______ for ___. Your letter No. ___________________dated _________.

Dear Sirs, You failed to deliver the entire quantity of materials within the contract delivery period. In your letter under reference, you have asked for extension of time for delivery. In view of the circumstances stated in your above referred letter, the time for delivery is extended from _________to _________, reserving our right to levy liquidated damages from you for delay in the supply of the materials after the expiry of the contract delivery period as mentioned in clause ________ for the extended period, notwithstanding the grant of this extension. 2. The above extension of delivery date shall also be subject to the right of ONGC to claim a reduction in prices on account of reduction in statutory duties / taxes etc. which may take place during the extended period of delivery. However, increase in prices during extended delivery period on account of increase in statutory duties/taxes etc. admissible under Change in Law clause of this supply order/contract shall be granted, only if extension is due to delay on the part of ONGC. 3. You may now tender the materials for inspection in terms of this letter. Materials, if any, already tendered by you for inspection but not inspected, will now be inspected accordingly.

Yours sincerely,

(MM/42/2009 dated 08.07.2009)

Annexure-B-I (of Chapter -1) Tender processing time applicable for Open Tenders
Sl. No. A 1 Activity Time schedule in number of days EPC Cases Purchase Requisition to NIT publication Receipt of Purchase Requisition complete in all respects Scrutiny of Purchase Requisition Approval of BEC (Holding TC and approval thereof) by MM, 0 5 8 0 5 Non EPC Cases

2 3

Publication of NIT (including uploading of NIT and tender documents on website) (Total days for phase-A)

7 (20)

7 (20)

B 1 2

NIT publication to Techno-commercial bid opening(TBO) Tender Sale Period Receipt of queries from vendors for pre-bid conference Scrutinizing the queries and holding pre bid conference Approval of Minutes of Pre-bid conference, issuance of minutes and amendments, if any . Submission of offers (i.e. Opening of Techno-commercial bid) (Total days for phase-B) 21 7 8 21 7 8

3 4

21 (65)

21 (65)

C 1

Techno-commercial bid opening to placement of LOA/NOA (a) Preparation of techno-commercial CS 4 (b) Vetting of CS 4 the offers for technical 1 7 8 (1 & 2 to be carried out concurrently)

4 4 1 7 8 (1 & 2 to be carried out concurrently)

(a) Forwarding comments

(b) Technical Comments 3 TC for evaluation (Holding TC and signing minutes)

Sl. No. 4 5 6 7 8 9 10

Activity

Time schedule in number of days EPC Cases Non EPC Cases 3 5 3 4 5 3 1 (55) 140 125 (40)

Approval of TC minutes Opening of price bids Preparation of CS for price bids Vetting of CS for price bids TC for finalization of tender (Holding TC and signing minutes) Approval for award of contract Award of LOA / NOA (Total days for phase-C)

3 5 3 4 5 18 1

Total Tender processing time (A+B+C)

Notes:

(i)

In case any activity is completed before specified time, next activity should be commenced immediately. (ii) Wherever pre-bid conference is not held / required, allotted time for the activities related to pre-bid conference (i.e. B2, B3 and B4) shall be excluded and the time for submission of offers (i.e. B5) shall be reduced to 10 days. (iii) Only in LSTK contracts, an additional time of 30 days for Process Platforms and 15 days for all other LSTK projects including Well Platforms and Pipe Lines shall be applicable for the activities between pre-bid conference to TBO. (iv) If seeking clarifications becomes necessary (applicable for all types of tenders), an additional time of 20 days shall be allocated for each round of clarifications (to cover the time required for obtaining clarifications, scrutiny of clarifications, holding TC and approval thereof etc.). However, the time for scrutiny, holding TC, approval etc. should be curtailed to the barest minimum possible. (i)(v) Wherever approval of Director is required an additional time of 5 days would be applicable. Wherever approval of EPC (other than for activity indicated at C.9 above) is required, an additional time of 15 days would be applicable.

Annexure-B-II (of Chapter -1) Tender processing time applicable for Limited Tenders
Sl. No. Activity Time schedule in number of days EPC Cases A 1 2 3 Purchase Requisition to Issue of tender enquiries Receipt of Purchase Requisition by MM, complete in all respects Scrutiny of Purchase Requisition Approval of BEC / PQC (For holding TC and approval thereof) Issue of tender enquiries (and uploading on website for cases above Rs. 5 lakhs) (Total days for phase-A) B 1 0 5 8 0 5 8 0 5 5 Non EPC Cases Above Rs 25 Rs 5 lakhs upto lakhs Rs 25 lakhs

7 (20)

7 (20)

5 (15)

Issue of tender enquiries to Techno-commercial bid opening (TBO) Receiving requests for tender enquiries from vendors whose name not included in original list Verification of such request by indentor and issue of tender enquiries to eligible bidders (including the time required for receiving same by the bidder) Receipt of queries from vendors for pre-bid conference Scrutinizing the queries and holding pre bid conference Approval of Minutes of Pre-bid conference, issuance of minutes Submission of offers (i.e. Opening of Techno-commercial bid in two bid system / bid opening in single bid system) (Total days for phase-B) 10 10 10

3 4 5

7 8 8

7 8 8

----

21 (60)

21 (60)

10 (26)

Sl. No.

Activity

Time schedule in number of days EPC Cases Non EPC Cases Above Rs 25 Rs 5 lakhs upto lakhs Rs 25 lakhs 4 8 4 1 7 8 3 5 3 4 5 3 1 (55) 135 120 (40) 60 --1 (19) (1 & 2 to be carried out concurrentl y) 4 1 7 8 2 --(1 & 2 to be carried out concurrently ) 4 8

C 1

Techno-commercial bid opening (TBO) to LOA/NOA 8 (a) Preparation of techno4 commercial CS (1 & 2 to be carried out (b) Vetting of CS. 4 concurrently ) (a) Forwarding the offers for 1 technical comments (b) Technical Comments 7 TC for evaluation (Holding TC and signing minutes) Approval of TC minutes Opening of price bids (in two bid system) Preparation of CS for price bids (in two bid system) Vetting of CS for price bids (in two bid system) TC for finalization of (in two bid system) (Holding TC and signing minutes) Approval for award of contract. Award of LOA / NOA (Total days for phase-C) 8 3 5 3 4 5 18 1

3 4 5 6 7 8

9 10

Total Tender processing time (A+B+C)

Notes: (i) In case any activity is completed before specified time, next activity should be commenced immediately. (ii) Wherever pre-bid conference is not held / required, allotted time for the activities related to pre-bid conference (i.e. B3, B4 and B5) shall be excluded and the time for submission of offers (i.e. B6) shall be reduced to 10 days. (iii) Only in LSTK contracts, an additional time of 30 days for Process Platforms and 15 days for all other LSTK projects including Well Platforms and Pipe Lines shall be applicable for the activities between pre-bid conference to TBO. (iv) If seeking clarifications becomes necessary (applicable for all types of tenders), an additional time of 20 days shall be allocated for each round of clarifications (to cover the time required for obtaining clarifications, scrutiny of clarifications, holding TC and approval thereof etc.). However, the time for

scrutiny, holding TC, approval etc. should be curtailed to the barest minimum possible. (i)(v) Wherever approval of Director is required an additional time of 5 days would be applicable. Wherever approval of EPC (other than for activity indicated at C.9 above) is required, an additional time of 15 days would be applicable.

Annexure-C-I (of Chapter -1) Format for reporting tender processing time. (Applicable for Open Tenders)
Sl. Activity Specified Time Norms in number of days (Tick the appropriate option as applicable) Schedule d date of completio n of the activity Actual date of completion of the activity (i.e, the last activity in case of concurrent activities) Delay, (if any) in completi ng any activity, with reasons thereof

A 1 2 3(a) (b)

Purchase Requisition to NIT publication Receipt of Purchase Requisition by MM, complete in all respects Scrutiny of Purchase Requisition Approval of BEC (Holding TC and approval thereof) Additional time, if approval of Director / EPC is required 0 5 8 05/15 (Applicable / not applicable) 7

B 1 2

Publication of NIT (including uploading of NIT and tender documents on website) Total Phase A NIT publication to Techno-commercial bid opening (TBO) Tender Sale Period Receipt of queries from vendors for prebid conference Scrutinizing the queries and holding pre bid conference Approval of Minutes of Pre-bid conference, issuance of minutes and amendments, if any Additional time, if approval of Director / EPC is required Submission of offers (i.e. Opening of Techno-commercial bid) 21

7 (Applicable / not applicable) 8 (Applicable / not applicable) 8 (Applicable / not applicable) 05 / 15 (Applicable / not applicable) 21 (Where PBC is held) 10 (Where PBC is not held) 30 days for Process P/F / 15 days for all other LSTK projects (Applicable / not applicable)

4(a)

(b)

5(a)

(b)

Additional time In LSTK contracts for the activities between pre-bid to TBO

Total Phase B

Sl.

Activity

Specified Time Norms in number of days (Tick the appropriate option as applicable)

Schedule d date of completio n of the activity

Actual date of completion of the activity (i.e, the last activity in case of concurrent activities)

Delay, (if any) in completi ng any activity, with reasons thereof

C 1

Techno-commercial Bid Opening (TBO) to placement of LOA/NOA (a) Preparation of techno-commercial CS 4 8 (1 & 2 to be (b) Vetting of CS. 4 carried out concurrently) (a) Forwarding the offers for technical 1 comments (b) Technical Comments 7 TC for evaluation (Holding TC and signing minutes) Approval of TC minutes Seeking clarifications, if necessary, (for obtaining clarifications, scrutiny of clarifications, holding TC and approval thereof etc.) Opening of price bids Preparation of CS for price bids Vetting of CS for price bids TC for finalization of tender (Holding TC and signing minutes) Approval for award of contract Additional time, for Director / EPC level cases Award of LOA / NOA 8 3 20 for each round (Applicable / not applicable) 5 3 4 5 3 05 /15 (Applicable / not applicable) 1

3 4 5

6 7 8 9 10(a ) (b)

11

Total Phase C Total Tender processing time (A+B+C)

Annexure-C-II (of Chapter -l) Format for reporting tender processing time. (Applicable for Limited Tenders)
Sl. Activity Specified Time Norms in number of days (Tick the appropriate option as applicable) Schedule d date of completio n of the activity Actual date of completion of the activity (i.e, the last activity in case of concurrent activities) Delay, (if any) in completi ng any activity, with reasons thereof

A 1 2 3(a)

Purchase Requisition to Issue of Tender Enquiry Receipt of Purchase Requisition by MM, complete in all respects Scrutiny of Purchase Requisition Approval of BEC/ major tender conditions (Holding TC and approval thereof) Additional time, if approval of Director / EPC is required Issue of tender enquiries (and uploading on website for cases above Rs. 5 lakhs) Total Phase A 0 5 8 (5 days for cases less than Rs 25 lakhs) 05 / 15 (Applicable / not applicable) 7

(b)

B 1

Issue of Tender Enquiry to Techno-commercial bid opening Receiving requests for tender enquiries from vendors whose name not included in original list Verification of such request by indentor and issue of tender enquiries to eligible bidders (including the time required for receiving the same by the bidder) Receipt of queries from vendors for pre-bid conference Scrutinizing the queries and holding pre bid conference Approval of Minutes of Pre-bid conference, issuance of minutes and amendments, if any (if approval of EPC is required, an additional time of 15 days would be applicable) Additional time, if approval of Director / EPC is required 10

5(a)

7 (Applicable / not applicable) 8 (Applicable / not applicable) 8 (Applicable / not applicable)

(b)

05/15 (Applicable / not applicable)

Sl.

Activity

Specified Time Norms in number of days (Tick the appropriate option as applicable)

Schedule d date of completio n of the activity

Actual date of completion of the activity (i.e, the last activity in case of concurrent activities)

Delay, (if any) in completi ng any activity, with reasons thereof

6(a)

Submission of offers (i.e. Opening of Techno-commercial bid in two bid system / bid opening in single bid system) Additional time In LSTK contracts for the activities between pre-bid to TBO.

(b)

21 (Where PBC held) 10 (Where PBC is not held) 30 days for Process P/F / 15 days for all other LSTK projects (Applicable / not applicable)

Total Phase B C 1 Techno-commercial Bid Opening (TBO) to placement of LOA/NOA (a) Preparation of techno-commercial CS 4 8 (1 & 2 to be (b) Vetting of CS 4 carried out concurrently (a) Forwarding the offers for technical 1 ) comments (b) Technical Comments 7 TC for evaluation / finalization in single bid system. (Holding TC and signing minutes) Approval of TC minutes 8

Seeking clarifications, if necessary, for obtaining clarifications, scrutiny of clarifications, holding TC and approval thereof etc.) Opening of price bids

Preparation of CS for price bids

Vetting of CS for price bids

TC for finalization of tender in two bid system. (Holding TC and signing minutes)

3 for cases above Rs 25 lakhs 2 for cases upto Rs 25 lakhs 20 for each round (Applicable / not applicable) 5 (Applicable in Two Bid System) 3 (Applicable in Two Bid System) 4 (Applicable in Two Bid System) 5 (Applicable in Two Bid System)

Sl.

Activity

Specified Time Norms in number of days (Tick the appropriate option as applicable)

Schedule d date of completio n of the activity

Actual date of completion of the activity (i.e, the last activity in case of concurrent activities)

Delay, (if any) in completi ng any activity, with reasons thereof

10(a)

Approval for award of contract.

(b)

Additional time, for Director / EPC level cases Award of LOA / NOA

11

3 (Applicable in Two Bid System) 05/15 (Applicable / not applicable) 1

Total Phase C Total Tender processing time (A+B+C)

(MM/66/2012 dated 03.05.2012) Annexure-D of Chapter-I of MM Manual ----------------------------------------------------------------------------------------------------------------Appendix- (of bid document) (Appendix no. to be indicated by the Work Center suitably)) PROFORMA FOR BANK GUARANTEE TO BE SUBMITTED TOWARDS LIQUIDATED DAMAGES (Applicable in LSTK contracts)

REF NO._________ BANK GUARANTEE NO. _____________ DATED __________ To, Oil and Natural Gas Corporation Limited -------------------------------------------------------------(indicate address of the Work centre) Dear Sirs, 1. In consideration of Oil and Natural Gas Corporation Ltd. incorporated under the Companies Act 1956 having its registered office at Jeevan Bharati, TowerII, 124 Indira Chowk, New Delhi - 110 001, India and one of its offices at (indicate address of the Work centre) (hereinafter referred to as "Company" which expression shall unless repugnant to the context or meaning thereof includes all its successors, administrators, executors and assigns), having entered into a Contract No. ............. dated ............. (hereinafter called "The Contract" which expression shall include all the amendments thereto) with M/s ............... having its registered/head office at ..............(hereinafter referred to as "The Contractor, which expression shall, unless repugnant to the context or meaning thereof include all its successors, administrators, executors and assigns) and Company having agreed that the Contractor shall furnish to Company a bank guarantee for Indian Rupees/US$ ...........( in figures) (Indian Rupees/US Dollars ..........) (in words) to cover the amount of Liquidated Damages as per clause . and of the Contract . (suitable clause nos. to be indicated by the work center) We.................. (name of the Bank) registered under the laws of ............... (name of the country) having head/registered office at ........... (hereinafter referred to as "The Bank" which expression shall, unless repugnant to the context or meaning thereof include all its successors, administrators, executors and permitted assigns) do hereby guarantee and undertake to pay immediately on first demand in writing and any/all money(ies) to the extent of Indian Rs./US$ ............. (in figures) (Indian Rupees/US Dollars ..........) (in words) without any demur, reservation, contest or protest and/or without any reference to the Contractor. Any such demand made by Company on the Bank by serving a written notice shall be conclusive and binding, without any proof,

2.

on the bank as regards the amount due and payable, notwithstanding any dispute(s) pending before any Court, Tribunal, Arbitrator or any other authority and/or any other matter or things whatsoever, as liability under these presents being absolute and unequivocal. We agree that the guarantee herein contained shall be irrevocable. This guarantee shall not be determined, discharged or affected by the liquidation, winding up, dissolution or insolvency of the Contractor and shall remain valid, binding and operative against the Bank. 3. The Bank also agree that Company at its option shall be entitled to enforce this Guarantee against the Bank as a principal debtor, in the first instance, without proceeding against the Contractor and notwithstanding any security or other guarantee that Company may have in relation to the Contractor's liabilities. The Bank further agree that Company shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said Contract or to extend time of performance by the said Contractor(s) from time to time or to postpone for any time or from time to time exercise of any of the powers vested in Company against the said Contractor(s) and to forebear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved from our liability by reason of any such variation, or extension being granted to the said Contractor(s) or for any forbearance, act or omission on the part of Company or any indulgence by Company to the said Contractor(s) or any such matter or thing whatsoever which under the law relating to sureties would, but for this provision, have effect of so relieving us. The Bank further agree that the Guarantee herein contained shall remain in full force during the period that is taken for the performance of the Contract and all dues of Company under or by virtue of this Contract have been fully paid and its claim satisfied or discharged or till Company discharges this guarantee in writing, whichever is earlier or until the date of expiry of the claim period specified in para 9 of this Bank Guarantee, whichever shall first occur. This Guarantee shall not be discharged by any change in our constitution, in the constitution of Company or that of the Contractor. The Bank confirms that this guarantee has been issued with observance of appropriate laws of the country of issue. The Bank also agree that this guarantee shall be governed and construed in accordance with Indian Laws and subject to the exclusive jurisdiction of Indian Courts in Mumbai. Notwithstanding anything contained herein above, our liability under this Guarantee is limited to Indian Rs./US$..........(in figures) (Indian Rupees/US

4.

5.

6.

7.

8.

9.

Dollars .............) (in words) and our guarantee shall remain in force until ................. (indicate the date of expiry of bank guarantee). Any claim under this Guarantee must be received by us before the expiry of this Bank Guarantee. If no such claim has been received by us by the said date, the rights of Company under this Guarantee will cease. However, if such a claim has been received by us within the said date, all the rights of Company under this Guarantee shall be valid and shall not cease until we have satisfied that claim. In witness whereon, the Bank through its authorised officer has set its hand and stamp on this......... day of....... at......... ......................... (SIGNATURE) Full name, designation and official address (in legible letters) with Bank Stamp. Attorney as per power of Attorney No...... Date........... WITNESS NO.1 ............................. (SIGNATURE) Full name and official address (in legible letters) WITNESS NO.2 .......................... (SIGNATURE) Full name and official address (in legible letters)

INSTRUCTIONS FOR FURNISHING BANK GUARANTEE FOR LIQUIDATED DAMAGES 1. The Bank Guarantee by Indian Bidders will be given on non-judicial stamp paper /franking receipt as per stamp duty applicable at the place from where the NOA has been issued. The non-judicial stamp paper /franking receipt should be either in name of the issuing bank or the contractor. 2. Foreign parties are requested to execute bank guarantee as par law in their country. 3. Foreign bidders will give guarantee either in the currency of the offer or US $ (US Dollar)i.e. Indian Rs/US $ have been mentioned only for illustration. Therefore, in case where bank guarantee is being given in currency other than 'Rupees' or U.S.$, indicate the relevant currency of the offer. 4.(a) The Bank Guarantee by Indian contractor can be given from Nationalized/ Scheduled Banks only. The Foreign contractor can give the Bank Guarantee either from Nationalized/ Scheduled Bank situated in India or from an Indian Scheduled Bank situated in their country. (b) In case the Bank Guarantee is being issued by a foreign bank (the same should be issued from any of the banks indicated at Appendix-____ of Annexure-___ of this bid document), then such Bank Guarantee shall be accepted only with collateral security/ guarantee/ confirmation from any Indian Scheduled Bank.

CHAPTER - 2

RECOUPMENT OF DEMANDS

CHAPTER - 2
107. MAINTENANCE OF KARDEX

107.1 The numerical ledger cards at present are required to be maintained by all MM Organisations in the Projects and Regions (the Priced Stores Ledgers are maintained by the EDP Section on the computer). These numerical cards consist of 'Bottom Cards' and `Top Cards'. Whereas in the Bottom Card the postings of the receipts, issues and balances etc. are required to be recorded, in the Top Card the information as to the outstanding dues on orders etc. has to be indicated. The bottom card is required to indicate the minimum and maximum levels (Safety Stock, R.O.L. & E.O.Q.) fixed for the purpose of automatic replenishment. As these cards form the basis of recoupment, which is a salient feature for the control of the inventory, it is necessary that for each item of `Stores & Spares' stocked in the various stores houses both the Bottom Cards & Top Cards are invariably maintained and all transactions and other information recorded promptly. It is also necessary that the total consumption year-wise for each of the past two years and month-wise for the current year should be recorded as such, so that the past and current consumption figures are readily available and it should not be necessary to total up each and individual issue to know the past consumption at any time. 107.2 One copy of all receipt and issue vouchers will be forwarded to the Kardex Section for keeping the postings up-to-date. One copy each of the supply orders from purchase sections will also be sent to the Kardex Section. 107.3 It is necessary that review of each card is conducted at the following stages to account for any fluctuation in consumption and to revise the limits where necessary and thus take timely steps for either reducing the outstanding dues or estimate any additional requirements:i. When the stocks and dues on order of each item reach the minimum level. This is a must.

ii. At the time when the physical stocks reach the safety stock level iii. Irrespective of the review at the above two stages, each card should be reviewed annually. iv. In addition to the above, Ledgers Posters (Stock Holders), while posting transactions should normally take note of any abnormal issues viz. variation of over 20% consumption over a six months period. 107.4 The dues on order against imported material should be promptly recorded by the Project / Regional Stores in the Top Cards the allocation made for the Project / Region against the contracts should be reflected and the cards kept up-to-date by posting receipts and the balance due etc.

107.5 Each numerical ledger card should be embossed with rubber stamps "Indigenous" or "Imported", as the case may be, to differentiate between imported and indigenous items. 108. MAINTENANCE OF BUFFER STOCKS

108.1 The Purchase Department takes purchase action on receipt of indents from the user / provisioning sections together with financial sanction. For the purpose of maintaining buffer stocks, Regional Stores functions to meet demands of the materials of recurring nature required by the Projects. Assessment of buffer stocks in normal Departments is not a difficult affair but in an organisation like the ONGC, it is rather difficult. Hence these buffer stocks can only be maintained if the work centres plan atleast two years ahead and advise their requirements to the Headquarters / Regional Stores. 109. FIXATION OF MAXIMUM / MINIMUM LIMITS

109.1 To keep a check on demands and to avoid unnecessary accumulation of materials, the Maximum and Minimum limits for all the items will be fixed. A minimum and maximum limit should be laid down in a Project, below or above which the balance should not ordinarily be allowed to go. These limits will be fixed by a Committee of the following officers:i) One Officer from the Materials Management ii) One Officer from the Fin.& Accts. Deptt. iii) One Officer from the concerned User Deptt. 109.2 INDIGENOUS ITEMS 109.2.1 In the case of the indigenous items the requirements are worked out by the MM Deptt. (Stock) at the Projects / Regions either by automatic replenishment on Min. / Max. basis or on receipt of requirements from the indentors. The orders are placed by them to the extent of their powers except for items where purchases have been centralised. 109.2.2 With a view to have an effective control over inventories, it is desired that for all stock items of stores & spares held in the store houses, the Min. and Max. limits are fixed. It is further essential that the limits are judiciously fixed taking into account the realistic consumption and lead time etc. and that the limits so fixed are periodically reviewed. The MM Officer should ensure this. The safety stock limits should not be more than 3 months. In fact this figure should vary from item to item and range from 0-3 months. The minimum i.e. reorder level should be fixed taking into account the safety stock required to be kept and the lead time consumption for the item. The maximum i.e. the quantity to be recouped at a time should be limited to 6 months requirements and in special circumstances where it becomes necessary to exceed 6 months requirements, say for item of special manufacture or items which are recouped on annual contract basis, it must be ensured that the receipt is properly phased and controlled so as not to

increase the inventory. The phased delivery should be properly inserted in a purchase order before issue. The recoupment of the indigenous items with a recurring consumption should be normally on automatic - Min. / Max. basis. In other words when the stocks and dues reach on minimum i.e. the R.O.L., the quantity required to be recouped should be = Min. + Max. (E.O.Q) Stock Dues on order + known pending demands, if any. Min. Represents Max. (E.O.Q) the R.O.L. i.e. safety stock and lead requirement. time

The quantity to be ordered (economic) at a time and is to be limited to 6 months requirements excepting in special circumstances as brought out above.

109.3 Imported Items 109.3.1 The recoupment of imported items is initiated by the User Departments, who generally base their requirements on the basis of the data received by them from various lower formations and after taking into account other factors as known to them and the likely drilling programme. The figures for the stock in hand and dues on order are required to be furnished by the Head of Materials Management of concerned Business Group for each item and only after taking these into account, the net requirements are to be worked out. This must be ensured. The actual past consumption atleast for the last two years consumption and the reason for the excess requirements should be indicated against each such item. The lead time for the imported items is considerably higher and it is necessary that the demands are initiated well in time taking into account the lead time and the requirements should not be worked out for more than 12 months at a time. Here too steps should be taken for proper stipulation in the purchase orders for a phased delivery. The buffer stocks for the imported items should not exceed more than six months requirements. 109.3.2 The formula for recoupment being:Net quantity = A + F - Stocks - Dues on order + Buffer stock required. `A' represents the interim period requirements i.e. the requirements till the commencement of the period. the annual requirement for the period......to.....

`F' represents

`Stock' represents the physical stock as available on _____ as indicated by the Head of Materials Management of concerned Business Group at the time of preparation of the statement for requirements.

Dues on order' the outstanding quantities still to be received represents against contracts and pending indents at the time of preparation of the statement as indicated by the Materials Management. 110. *The senior most Materials Management Officer not below E-1(MM) will have full powers to fix maximum-minimum limits for stock items in consultation with the concerned indentor and with concurrence of Finance. *(Authority: Item No. G.1.2 of The Delegated Powers,1994) 111. REVIEW OF THE MINIMUM / MAXIMUM LIMITS The Minimum and Maximum limits will be reviewed annually or earlier, if warranted, either on account of changes in programme of operations or changes in the norms. 112. PREPARATION OF RECOUPMENT REQUISITION Recoupment requisition should be made in duplicate in the form shown below. One copy will be retained as office copy and the original forwarded to the procurement section for immediately arranging procurement of the required material. OIL & NATURAL GAS CORPORATION LTD. STOCK RECOUPMENT REQUISITION FORM ...............Project Class Group.........
Qty. in stock Qty. On order Total (Col.1&2)

Requisition No.........Date.... Code No......


Qty.outsta nding against indent requistion Max. Min.

Description.............
Total (Col.4,5&6) Qty. Reqd. (Col.7-3) Remarks

Signature of I/C Kardex

CHAPTER 3

PROJECT STORES

CHAPTER-3
113.1 PROJECT STORES 113.1 Regional MM Deptt. maintains buffer stocks to meet the requirement of the Projects from time to time. Minimum / Maximum limits of the stock holdings in Projects will also be fixed. 113.2 The procurement section will obtain report of stock holdings from various stock holders and place timely demands on the Regional MM Deptt. to recoup the stock. 113.3 If any materials are not available in the Regional MM (Stock) and the same fall within the financial powers of the Project Head, procurement of such items can be undertaken direct to meet the requirement after obtaining necessary financial sanction. In case it does not fall within the financial powers of the Project Head, he will be requested to arrange financial sanction through the concerned Region. 113.4 When the purchase power does not fall within the competency of the Project Head, indent alongwith the financial sanction will be sent to the Regional MM Deptt. for taking procurement action. 113.5 Before procurement action is taken by the Project, a confirmation will be obtained from the Regional MM Deptt. regarding the time by which they will be able to meet the requirements. The quantity of materials to be procured direct will be purchased only to meet the time-gap. 113.6 The Project Head will be the 'Direct Demanding Officer' to place indent on Regional MM (Stock).

CHAPTER 4

CLEARING AND FORWARDING PROCEDURE

CHAPTER - 4 CLEARING AND FORWARDING PROCEDURE


114. C&F SECTION RESPONSIBILITY The Clearing and Forwarding Section will be responsible for correct registration, linking and disposal of all transit documents, clearing / receipt / despatch of materials by Air / Rail / Road or by post and preparing necessary documents connected with their work. 115. TRANSIT DOCUMENTS - RECEIPT OF

115.1 Transit documents such as Railway Receipts (RR), Parcel Way Bills (PWB), Goods Transport Receipt(GTR) and Convoy Notes in respect of materials dispatched by the consignor will be received from the Central Diary Section. 115.2 The RR / PWB / GTR immediately on receipt will be entered in the RR Register which will be maintained as per form STR-14. 115.3 Railway Receipts / Parcel Way Bills (PWB) / GTRs held with the Clearing & Forwarding Section will be regularly examined by them and necessary hastening action taken with carriers to expedite delivery of materials which have not been received within the normal time allowed for transit. 115.4 In all instances of non-receipt of consignment(s) within the permissible time limit, local authorities will be contacted to initiate action to locate the consignment(s). 115.5 If, however, the materials are not received within the reasonable period and RRs / PWBs remain outstanding, a formal claim on the Railway / Carriers will be lodged by the Clearing & Forwarding Section and intimated to the Officer-in-Charge, Stores. This submission of the claim will not be delayed beyond three months from the date of despatch of materials by the consignor. 115.6 If the materials arrive at the Railway Station prior to receipt of RRs / PWBs, delivery of the same should be taken against the Indemnity Bonds. Necessary record is, however, to be maintained on RR register. RR / PWB will be tendered to the Railway as soon as they are received from the consignor and the Indemnity Bond cleared. 115.7 Postal Despatch Advice Notes are also to be entered in the RR register. All instances of non-receipt of post parcels within one month from the date of the despatch will be reported to the consignor for taking up the matter with postal authorities. In case where the materials have been received prior to the receipt of postal despatch advice from the consignor, proper linking will be maintained in the register.

116.

ARRIVAL OF MATERIALS.

116.1 The materials may arrive in Clearing & Forwarding Section as follows :i. By full wagons where Railway sidings is provided inside the storesyard. Station where the

ii. By full wagons or piece consignments at Railway Railway sidings is not provided. iii. By Road Transport. iv. By Post. v. By Air.

116.2 When full wagon(s) is / are received at the Railway Station or at the Railway siding inside the Stores yard, immediate steps will be taken to unload the wagon(s) to avoid any demurrage. If due to any unavoidable circumstances the wagons cannot be unloaded within the period authorised by the Railways, necessary reasons therefore will be recorded in the Remarks column of RR Register. 116.3 Immediately on receipt of full wagon(s), these will be examined in the presence of the Railway representative to ensure that there are no apparent indications suggesting any loss or damage to material enroute and all locations / seals both of consignor and Railways are intact. 116.4 Particulars in respect of wagons on receipt will be entered in daily Wagon Register as per form STR No. 27. 116.5 In case of stores received after transhipment, the original wagon No. will be entered in the Remark column of Daily Wagon Register (STR-27). 116.6 Wagons will be opened and unloaded in the presence of Railways representative and checked against the Convoy Notes. In case of any discrepancy, a certificate to the effect will be obtained from the Railway representative for use in support of the claims. The discrepancy will also be noted in the RR register. Immediate steps will be taken to lodge the claim with the Railways authorities. 116.7 The Clearing and Forwarding Section's representative is to visit the Railway Station daily and collect all the materials received at the station. He will take with him the RR / PWB and while taking delivery of materials, will sign the Railway Delivery Book on behalf of the Corporation. The RR / PWB in respect of the consignments which are being taken over from the Railways will be handed over to the Railways authorities.

116.8 The Section Incharge will ensure that all RR / PWB are properly recorded in the RR Register and while handing over to his representative for station duty, his signatures are obtained for record. 116.9 The Clearing and Forwarding Section is to hand over all consignments to the concerned stock holder alongwith the original copy of Receipt Convoy Note as per form STR No. 29 after obtaining signature from the stock holder on his office copy. 117. DAMAGES/DISCREPANCY IN RECEIPT OF MATERIALS

117.1 Before collecting the material the representative of the Clearing and Forwarding Section will ensure that the packages are in good condition and show no signs of any loss or any damages to the materials enroute and the weight of the packages / consignments agree with the weight shown on the RR / PWB. In case of sealed packages, all the seals will be checked to ensure that these are intact. 117.2 In case the packages / consignments are damaged or there is any discrepancy in weight, open delivery will be demanded from the Railways and the contents of the packages will be checked in presence of Railways representative. Any discrepancy found will be noted in ink on the Railway Delivery Book and the RR / PWB and relevant packing slip will be endorsed with details of the discrepancy. If packing slip is not received alongwith the consignments, a Receipt Convoy Note (Form STR No. 29) is to be prepared and signatures obtained thereon from the Railways representative. 117.3 In case the consignment is received in damaged condition, the necessary information will be given in the Remarks column of the Convoy Note. 118. RAISING OF DISCREPANCY REPORT

118.1 Materials which are received in packed cases or otherwise, are to be checked with the supplier's packing list. In case any discrepancy is noticed, this is to be recorded in the Discrepancy Report (Form STR-15) and suitable action taken. Two copies of the Discrepancy Report will be sent to Purchase Section who, on their part, will prefer the claim with the supplier and/or Insurance Company, whichever applicable. The Purchase Section on their part will take immediate action so that the claims do not become time barred. The duplicate copy of Discrepancy Report will be returned back to the Receipt Section with the necessary indication regarding the action taken. If the copy is not received back within the reasonable time, the Receipt Section should pursue the case with the Purchase Section. 118.2 Discrepancy reports should be raised within 7 days of the inspection. It must be ensured that the discrepancy reports reach the consignor within the period of insurance so that claims do not become time barred. The inspecting

authorities must complete the inspection expeditiously so that the claims can be preferred on the insurance companies within the validity period. 118.3 Discrepancies of trivial value Discrepancies should be raised carefully. Discrepancies of trivial value costing Rs.50/- or less should not normally be raised provided the discrepancy is not in excess of 10% of the value of consignment even if the loss itself is of trivial value. It has to be ensured that the discrepancy is not one of a series of discrepancies from the same source of supply or same stock recipient. In so far as purchases are concerned, these provisions will apply only to cases where 100% advance payment has been made. 118.4 Stock Discrepancy (MM/56/2010 dated 11.10.2010) The MM officer(s) not below E-1 level will have full powers to approve and countersign a Stock Discrepancy Report and direct follow up action. Officer(s) of E-0 level shall exercise these power upto Rs 10,000.00. However, Where materials management officer of E.1 level is not posted, E.0(MM) may exercise full powers. (Authority: Item No. MM5 of BDP-2009) 118.5 Stock Verification Discrepancies (MM/56/2010 dated 11.10.2010) The Assistant MM Officer(s) of E-0 level will have full powers to approve accounting of Stock Verification Discrepancies. (Authority: Item MM6 of BDP-2009) 119. DESPATCH OF MATERIALS

119.1 When any materials are required to be despatched from the MM (Stock), the stock holder will intimate the Clearing and Forwarding section on 'Despatch Note' (form No. STR 28). 119.2 The Clearing and Forwarding section will take immediate steps to arrange the despatch of the materials as required i.e. by Rail/Road/Post. 119.3 Before taking over the packages for despatch, the Clearing and Forwarding Section will endorse a certificate on the office copy of the 'Despatch Note' of the Stock-holding section indicating thereon the time and date when the packages were taken over by them.

119.4 As soon as the materials are dispatched / delivered, the RR etc. is to be immediately handed over to the concerned stock-holder for further disposal. 119.5 In case of full wagon loading, the existing regulations covering the demand of wagons will be observed. 119.6 Wagons will be loaded to the full capacity considering the type and weight of the items being loaded. If the materials are to be despatched needing a number of wagons, urgently required materials are to be loaded and dispatched first. 120. DESPATCH CONVOY NOTE / DESPATCH REGISTER

120.1 In case of full wagon loads, Despatch Convoy Note is to be prepared as per form STR-30. Original copy of the Dispatched Convoy Note is to be retained by the section, 2nd copy to be sent to the consignee, 3rd copy is to be handed over to the consignor (stock holding section) and 4th & 5th copy will be placed in the wagon. 120.2 Each copy of the Despatch Convoy Note, placed in the wagon, is to be kept inside the wagon near the door so that when the door is opened, one copy of the Convoy Note is readily available and can be taken out at once. Care will be taken to ensure that the Convoy Notes are well placed and are secured from slipping down amongst the packages. 120.3 All records of despatches are to be maintained in the Despatch Register (Form No. STR 18). 120.4 When any parcels is despatched by the Post, necessary records will also be maintained in the Despatch Register and postal receipt handed over to the Stock-holder for record. Necessary receipt of such postal Receipt is to be taken by the Clearing and Forwarding Section from the stock holder. 121. ESCORTING OF MATERIALS

121.1 When any materials are sent in open wagon, suitable escort is to be arranged to accompany the wagons, to avoid pilferage enroute. 121.2 During the transit by Rail, delay may take place. The movement of the wagons may, therefore, be expedited at the station where the materials are likely to be transhipped from Broad Gauge to Meter Gauge and vice versa or at the station where the change of Railways takes place such as from Northern Railways to Western Railways and the like.

CHAPTER - 5

INSPECTION AND ACCOUNTING OF MATERIAL

122.

INSPECTION OF MATERIALS

(MM/56/2010 dated 11.10.2010) 122.1 All materials will be accepted after inspection, except purchases upto Rs.10,000.00 as per para 18.1.3 and 18.1.4. (MM/44/2009 dated 14.09.2009) 122.2 (A) The Quality Assurance Department shall be responsible for carrying out quality control / inspection of all items / equipment against supply orders placed by MM Deptt., except the following :(a) All chemicals including mud chemicals, oil well cement, paints and gases. (b) P.O.L. (c) Building materials including cement and timber. (d) Seismic explosives and detonators. (e) Cleaning agents, hand gloves, cotton waste. (f) Printed stationery. (g) Wooden planks and coal. 122.2 (B) The above items at Sl. No. (a) to (g) except (d), shall be inspected by concerned Indentor. Item at Sl. No. (d) shall be inspected by an official of Indenting department, who is authorized / licensed to handle explosives, by visually checking the items w.r.t verification of quantity (nos.), weight, visual defects, batch nos. etc., and also subject to obtaining an undertaking from supplier to the effect that in case the field performance of such visually inspected items is not satisfactory, the same shall be replaced by the manufacturer at his cost. (MM/56/2010 dated 11.10.2010) 122.3 Quality Assurance Department shall not be responsible for inspection against supply orders valuing less than Rs. 10,000/- . (MM/42/2009 dated 08.07.2009) 122.4 All steps must be taken to commence inspection within 3 days after the receipt of the intimation from the Materials Section for items to be inspected locally and within 7 days if the materials to be inspected are located out of station. Reasons for delay in the inspection beyond this period should invariably be reported to the Head of concerned Materials Management, Head of Quality Assurance Department and Project Head. Inspection report (or, Intimation in respect of rejection of material) should be sent to supplier by the inspecting authority within 4 days after completion of inspection / receipt of relevant test reports (if any), under intimation to concerned sections (including purchaser, Indentor, consignee and payment authority). for the petty

122.5 In the case of imported stores and spares manufactured abroad by reputed manufacturers and accompanied by the manufacturer's warranty, stores may be accepted after random sampling / visual inspection. 122.6 In case where cost of inspection is not commensurate with the value of the stores concerned, inspection may be carried out at destination. At the time of placing the supply order a suitable clause should be inserted to provide for the return of sub-standard materials at the expense of the supplier or acceptance of on an agreed reduced cost. 122.7 It is not advisable that the inspection should be carried out by the purchase section or the stock holder. All technical equipment and mud chemicals requiring expert check will be put up to the representative of the Indentor/ Department of Quality Assurance, wherever necessary and possible. 122.8 All the cases / packages are to be opened in the presence of Inspecting Officer. (SP/3/99 dated 24.05.99) 123. INSPECTION AFTER EXPIRY OF CONTRACT DELIVERY PERIOD

123.1 Normally, no materials should be inspected and accepted after the expiry of the contract delivery period and, therefore, the Inspecting Officer should endorse the following clause on the Inspection Note: "The fact that the have been inspected after the delivery period and accepted, will not bind the purchaser, unless at his discretion he agrees to accept delivery thereof. The materials are being passed without prejudice to the right of the purchaser under the terms of the contract".

123.2 In case of part delivery offered by the firms for inspection after the expiry of the contract delivery period, the following clause should be inserted on the Inspection Note by the Inspection authorities: "The materials detailed below have been tendered by you after the expiry of the delivery date provided in the contract and have been inspected as a special case; this does not bind the purchaser unless, at his discretion he agrees to accept delivery thereof; nor does it prejudice the right of the Purchasing Officer to claim liquidated damages from you for the late delivery or to cancel the contract on the expiry of the delivery date, under the terms of the contract".

123.3 Third party inspection for accepting bulk supplies of mud chemicals from abroad. In case of bulk supplies of mud chemicals from abroad, if situation so warrants, third party inspection may be resorted to with the approval of Director Concerned and accordingly suitable provisions for third party inspection will be made in supply orders in case of bulk supplies of mud chemicals from abroad.

124.

RECEIPT OF MATERIALS

124.1 Function of the Receipt, Stock and Issue Section will be to receive the material from the Clearing & Forwarding Section, check the same with the Convoy Note / Supply Order; stock the same and issue them, whenever required. 124.2 As soon as the material is received from the Clearing & Forwarding Section, the same will be linked up with the supply orders without tampering the packing cases. The Inspecting officer appointed by the Officer-in-Charge, Stores, will then be intimated for inspection. (SP/3/99 dated 24.05.99 ) 124.3 As soon as any material is received by the Clearing & Forwarding Section, packages in original condition are to be handed over to the Receipt Section which will endorse a certificate, in token of having received the packages on the Receipt convoy Note/RR Register which will be sent to them by Clearing Section. 124.4 Copies of all supply orders placed by the Procurement Section are to be sent to the Receipt Section. The Receipt Section will maintain record of the supply orders item-wise. 124.5 The material is to be checked with the supply order / Convoy Note both quantitatively and qualitatively. After the completion of inspection, necessary Receipt Voucher will be prepared. (MM/56/2010 dated 11.10.2010) 124.6 Materials Management Officer not below E-I level is authorised to approve and countersign a Goods Receipt Voucher. Where Materials Management Officer of E-I level is not posted, MM Officer of E-0 level may exercise full powers. (Authority: Item MM4 of BDP-2009) 124.7 In case the quality of the material received is required to be referred to expert(s) outside the MM Organisation, the Receipt Vouchers for such materials have to be prepared and necessary remarks inserted in the Remarks Column of Receipt Voucher. Such material will be taken on Ledger Charge / Stock Cards and similar remarks will be given as in Receipt Voucher. All entries in the Stock Cards / Kardex Cards and in the Ledgers are to be checked and initialled daily by the Officer-in-Charge of the section concerned. These materials are, however, not to be issued till the technical expert approves of the qualify of the material.

125.

PACKING MATERIAL - ACCOUNTING OF All packing material received alongwith the materials is also to be receipted and entered in the stock register especially opened for packing material. Any packing material issued for packing purposes or otherwise is also to be properly recorded by following normal procedure of Receipt and Issue.

126.

PREPARATION OF GOODS RECEIPT VOUCHER (GRV) one form of GRV for both Imported and Indigenous

126.1 There shall be only materials.

126.2 Separate GRVs will be prepared for Stores, Spares and Capital items to facilitate correct booking in priced stores ledgers in Accounts Section. Separate series of GRVs will be used for each category. The GRVs will be prepared in 7 copies on STR-1 and are to be distributed as under :______________________________________________________________
Sl. No. of copies for one set: 1st SA-6.2 : : Department (in order of flow of copies) 1 2 3 : Colour : : Blue Pink Pink White Green White Blue

2nd -do3rd -do4th -do5th -do6th -do7th -do-

MM (Kardex) " " " " " "

Accounts

EDP

" Bill section " Indentor MM (S.H.) MM (Pur) Retained in MM Receipt Sec.

Note : Where the number of Indentor is more than one then all Indentors will be informed of the receipt of material. 126.3 One continuous series for GRVs will be maintained by each project. Original copy of the GRV will be sent to Stores Ledger Section / EDP and duplicate copy sent to Accounts for payment purposes. On original copy of GRV would be embossed "for EDP purposes" and on duplicate copy "For payment purposes". The GRV will be sent to Accounts branch duly completed in all respects by 11.00 AM on the following day. Third copy is meant for Internal Audit and is to be sent to them. 126.4 As soon as the Goods Receipt Voucher is prepared, entries are to be made in the Stock Cards / Kardex Cards and stores binned properly. (MM/56/2010 dated 11.10.2010) 126.5 No GRV will be raised for petty purchases of consumable items upto Rs. 10,000/-.

127.

BINNING OF MATERIALS

127.1 To identify the materials from the respective suppliers, before binning the materials, one representative sample from the consignment will be attached with the identification card, which will indicate :a) b) c) d) Receipt Voucher No. and Date Nomenclature Part No. Location / Bin No.

127.2 The materials will then be passed for binning. 127.3 To ensure that there is no wrong binning, fresh consignment to be binned will be compared with the consignment already lying in the Bin before binning. If the consignment does not tally, a recheck should be undertaken and correct Bin No. re-allocated. In case of error in inspection / acceptance, attention of the Inspection Officer will be drawn. 127.4 As far as possible new receipts will be so arranged in the Bins that these are last to be selected for issue so that proper turnover of the stock is maintained. 127.5 Prior to binning action, the quantities already held in Bins will be checked and determined whether sufficient room exists in the Bins to accommodate the total quantities received. If there is insufficient place in the Bin to accommodate the whole of the new receipt in the Bins, a new location, preferably in the vicinity of old location, will be created and new location will also be entered in the Stock Card and Receipt Voucher. Ledger Section will also be apprised accordingly to reconcile its records. 128. STOCKING OF MATERIALS

128.1 The following guidelines will be followed:i. All materials will be kept in Racks / Bins.

ii. All Racks / Bins will be given location Nos. The same are to be recorded on the Stock Cards / Kardex Cards. iii. All materials must be properly preserved. A separate policy on 'Preservation of stores' has been issued by Director(Technical). However, this policy will be reviewed from time to time, wherever necessary. iv. While stocking materials, the heavier items will be kept at lower rungs of the racks and lighter on higher ones.

v. Fast moving items should be stored at easily accessible place and to the nearest point of issue. vi. Stocking of the items should be so arranged that the principle of 'First Come' 'First Out' (FIFO) can be easily followed. 129. SCRUTINY OF MATERIALS REQUISITION / ISSUE NOTE proper form STR

129.1 Materials will be issued only on receipt of indents on No.4 from authorised indenting officer(s).

129.2 The Regional / Project / Business Group Head will intimate the name(s) of officer(s) to the MM who will be authorised to indent stores. Instructions issued by Director (Tech.) for declaring authorised indentor(s) will be followed strictly. 129.3 The indenting officer will be informed regarding the division of Stock-Holding sections in the Materials Management to enable them to place their indents on the concerned section. 129.4 When the indent is received in Materials Management, the Officer-in-Charge of Issue Section will check whether the indent is signed by the authorised officer as per existing directives. He will then pass it on to the Stock Holding Section for issue. 129.5 The Stock Holding Section, before issue of materials, will check the indent with regard to the following points:a) Whether all the items in the indent are for one section? If some of the items are not kept in the Stock Holding section, the Stock Holder will note a remark against the items in the indent and draw attention of the indentor. The indenting officer will then place the indent for those items on concerned section. b) Whether the nomenclature and Part No., if any, is shown correctly according to the record on Stock Cards ? c) Whether the quantity demanded is as per the existing scales and / or regulations? d) Whether the indentor has indicated exact location of the consignee and full postal address where the materials are required to be dispatched to the outstation(s)? e) Whether the demand in respect of replacement issues is accompanied by relevant supporting documents e.g. Condemnation Board's proceedings / Beyond Local Repairs (BLR) Certificate and Loss Statement etc. to establish the causes which necessitated replacement ? The indent for replacement issues should be accompanied with the separate STR No.4.

f) Whether indent for spares for machinery and accompanied with worn out and unserviceable parts.

automobiles is

g) The Officer-in-Charge of Issue Section should ensure that when the indent is received, it contains clear description of the job for which the stores are required. For example "jeep repairs" or "repair for office furniture" etc. etc. 130. MATERIALS REQUISITION / ISSUE VOUCHER PREPARATION OF

130.1 The authorised indentor shall prepare six copies in STR-4 of Materials Requisition / Issue Voucher and hand over five copies to the Stock Holder either directly or through his representative. The distribution of copies of Materials Requisition / Issue Voucher shall be as under :______________________________________________________________ Sl. No. : Department (in order of flow of copies) : Colour of copies : 1 2 3 : for one set: : --------------------------------------------------------------------------------------------- ----------1st MM EDP White (Issue) 2nd 3rd 4th 5th 6th " " " " " MM Deptt. Accounts Accounts Security Requisitioning Cost centre Blue Pink Pink Green

Yellow

130.2 Separate vouchers shall be prepared for stores, spares and Capital item on stock. Separate series will be allotted to the vouchers. (MM/56/2010 dated 11.10.2010) 130.3 Materials Management Officer not below E-I level is authorised to approve and countersign an Issue Voucher. Where Materials Management Officer of E-I level is not posted, MM Officer of E-0 level may exercise full powers. (Authority: Item MM4 of BDP-2009)

131.

DISPOSAL OF INDENT ISSUE RETURN VOUCHER

131.1 The Stock Holder shall :i. issue the goods and post quantity issued, unit balance in the stock card on the previous day and identification No. on all the copies of the stores indent;

ii. take the signature of the person receiving the goods on the material indent; iii. initial the indent and hand over the indentor's copy to the indentor or his representative; iv. make the requisite entries in the Stock Card and extend a new quantity balance; v. three copies of all the Indent Issue Return voucher shall be sent to Acctts. Section by MM Stores Department so as to reach that section by 11.00 AM on the following day; and vi. file the Stock-Holder copy of the indent for reference. 131.2 While light goods shall be immediately issued to the person bringing the indent, the heavy goods shall be sent to the indentor through MM Deptt. labour and MM Deptt. truck. The Incharge of Stock Section shall coordinate the requirements of MM labour and trucks for different Stock Holders. When the material is to be delivered by the MM truck(s), the Driver shall take indentor's and Accounts copy of the Materials Indent with him and bring back the Accounts copy to the Stock Holder with signature of the indentor in token of receipt of materials. 131.3 For security purposes, the indentor's copy with details of issue shall be shown to the Watchman at the gate, who shall sign or stamp it in token of having checked the goods. 131.4 The Internal Audit Section purposes. will use Accounts Section copy for audit

131.5 The recoupment of Stores and Spares will be done instructions. 132. ISSUE OF MATERIALS TIMINGS OF

as per existing

As far as possible, the Stock Holder shall effect issues and record entries on stock cards simultaneously. However, with a view of allowing him a little margin to complete the left over jobs, the goods shall be issued from 8.00 AM to 12.00 noon and from 1.00 PM to 4.00 PM and one hour being allowed for lunch break and one hour between 4 p.m. to 5 p.m. being allowed for left

jobs. The timings may be specified as per working hours of the Project / Office accordingly. 133. ISSUE OF MATERIALS TO OUT STATION

133.1 When the materials are required to be dispatched to out station, these are to be properly checked and packed in the presence of two responsible officials, one from Stock Holding Section and the other from Clearing & Forwarding Section. 133.2 For each packing case, independent packing list is to be prepared in triplicate on form STR-17. One copy will be kept in the case; second will be sent to the consignee alongwith the Issue Voucher and Railway receipt and the 3rd copy to be retained by the Stock Holder. 134. ITEMS RECEIVED AGAINST ADHOC DEMAND(S) Items of stores and spares which have been purchased on the basis of adhoc demand(s) from the indentor(s) should not continue to lie in the stores house(s) for indefinite period. It is necessary that such items immediately on receipt should be taken over by the indentor(s).The advice about their receipt(s) in the stores house(s) should be promptly furnished to the indentor(s). A monthly statement of such items received and not collected by the indentor(s) should be prepared by the MM Officer and submitted to the Project / Regional Head for co-ordinating further action. 135. RECORDING OF CAPITAL / STORES AND SPARES ITEMS

135.1 STORES AND SPARES The items of Stores and Spares, when issued to the users by the MM Deptt., will be finally charged off from the Stores and Accounts Book. The User Department will, however, maintain in STRs the inventories of such stores & spares items in their possession which may be fit for repeated use over a long period of time and will be responsible for their safe custody and accounting until they are written off due to normal wear & tear or any circumstances like loan to other departments or projects, loss etc. These records will be subjected to check by Stock Verification Teams to ensure that these are always complete and up-to-date. 135.2 CAPITAL ITEMS 135.2.1 All Capital items on receipt will be posted by the MM Deptt., in the numerical Kardex Cards which are maintained by them category-wise separately for serviceable items, repairable items and unserviceable items. 135.2.2 Capital items, as soon as received, will be issued to concerned Indentor. In case these are not indented within a month, the matter will be brought to

the notice of concerned Regional / Project Head for suitable directives to concerned Indenting Department. 134.2.3 The Capital items once issued against demand(s) of authorised indentor(s) will be finally struck off from the numerical Kardex Card(s) and further responsibility for their accounting / distribution / safe custody etc. will lie with Accounts Deptt. and Indentor / User Deptt., as the case may be, until the item is returned to MM Deptt. Details of capital items with indentors will be maintained in STR - 5. 135.2.4 The Deptt. / Office of users will obtain half yearly confirmation from the actual users regarding physical existence of the item(s). 135.2.5 The Stock Verification Team will verify the stock of capital items held by MM Deptt.on the basis of Kardex Cards maintained by them and items held by user agencies will be verified against the record maintained by them and the total items from Block Registers maintained by the Accounts Department perpetually. 135.2.6 The balance held in Kardex Card of the MM Deptt. plus balance in user's record must invariably tally at all times with the balance in Block Register of the Accounts Formation. The discrepancy found during Stock Verification of the stocks of MM Deptt. and stocks with users after comparing the same with the balance of Block Registers will be reconciled by physical checking of the respective items of MM Deptt. as well as user's stock, wherever discrepancy has been actually revealed. 136. RETURN OF MATERIALS

136.1 Whenever any materials are found surplus to the indentor's requirements, these should be returned on Materials Return Note (STR 4-A) to the MM Deptt. (Stock) from where these were originally drawn, by the Indentor. Six copies of the Materials Return Note will be prepared for distribution as under :Sl. No. Of Department (in order of flow of copies) copies for 1 2 one set 1st 2nd 3rd Receiving M .M 4th Security EDP Colour 3 -White

-Accounts Accounts --

--Returning Centre --

Blue Pink Cost Pink Green

5th 6th

(Cost centre) Returning (Cost centre) --Yellow

Note:

The above distribution e.g. receiving copy, EDP copy, Accounts copy, Cost Centre copy and Security Gate copy will be printed in bold letters on each in red ink.

136.2 The Stock Holder will take the material on charge on the Materials Return Note itself. The authorised officer will assign the balance life of the returned material. The person returning the material and the officer authorising the return must invariably countersign. 136.3 Reference to Issue Voucher under which the material was issued shall invariably be given on Materials Return Note. 137. REPLENISHMENT OF SPARES All spares for machinery and automobiles etc. are to be issued against the production of wornout and unserviceable parts. Therefore, while requisitioning the replenishment of such spares, the used spares should invariably be returned. (Provisions laid down vide para 129.5(e) also refer). 138. TRANSFER OF MATERIALS PREPARATION OF MATERIAL TRANSFER NOTE (STR-19) (SA03) (MTN)

138.1 The Material Transfer Note (STR-19) (SA03) will be prepared for all transfer of goods from one Project / Unit to another. Separate class-wise MTNs shall be prepared for transfer of stores, spares and capital items in stock. The MTN will not require raising of Goods Receipt Voucher and instead the material received against MTN shall be taken on charge on the MTN itself. The MTN shall be prepared in 7 copies and distributed as under :Sl. No. Of Department (in order of flow of copies) copies for 1 2 3 one set 1st Copy Issuing MM EDP (Issue) Colour 4 5 Blue

2nd Copy

Accounts (Issue)

Pink

3rd Copy

Receivin Accounts g MM Receiving

EDP Receiving M.M (Issue)

Blue

4th Copy

White

5th Copy 6th Copy

Receiving MM

Account Receiving

Pink Yellow

7th Copy

Receiving MM

Pink

(MM/56/2010 dated 11.10.2010) 138.2 Materials Management Officer not below E-I level is authorised to approve and countersign s Material Transfr Note. Where Materials Management Officer of E-I level is not posted, MM Officer of E-0 level may exercise full powers. (Authority: Item MM4 of BDP-2009) 139. SUBMISSION OF VOUCHERS

139.1 The vouchers should be made over by the MM section to the Stores Accounts (PSL) office daily. The vouchers of a date say 1st of month should be completely delivered to the Stores Accounts office without fail, wherever no holiday intervenes, on the morning of 3rd within 2 hrs of the opening of the office. The vouchers would be accompanied by a Forwarding Memo on the following form :Forwarding Memo of Receipt / Issue Vouchers

For Date _______________ Ward Index Letter ______________________ Class _________________________________________________________ ______________________________________________________________ R.O. VOUCHER NO. DATE R.O. VOUCHER NO. DATE NO. NO. ______________________________________________________________ 139.2 Where the MM (Stock) section and the Stores Accounts (PSL) office are not in the same station, the time allotted may be modified to suit the local condition taking care to see that there is no avoidable delay in the regular submission of the vouchers to the Accounts office. 140. CANCELLED OR MISSING VOUCHERS If any voucher is missing, a search should be made for the same and if it cannot be obtained at once a note should be kept in a register and the

matter pursued until settled satisfactorily. In case of cancelled vouchers, it should not be destroyed but after necessary endorsement with the remark "Cancelled" on the foils and against entry of the forwarding memo, Vouchers should be sent to the Priced Stores Ledger Section where these should be separated from the rest and filed separately class by class. In checking the vouchers with forwarding memo, the arrangements of vouchers from the MM section should not be disturbed even if this involves inconvenience. 141. CENTRAL REGISTER OF LEDGERS / STOCK CARDS AND AUDITABLE DOCUMENTS Officer-Incharge, MM (Stock) will maintain this register. This register will show all the Stock Ledger, Kardex Cards, Index Nos. and auditable documents. At the time of authorising opening of a new ledger / Stock Card etc. a certificate of the Ledger Section / Stock Holder should be taken as follows on the register:"CERTIFIED THAT ALL MATERIALS BORNE ON THE STOCK CARDS ARE IN MY PHYSICAL CUSTODY"

Signature of the Stock Holder

"THIS LEDGER IS IN MY PHYSICAL CUSTODY CONTAINS...........PAGES. ALL PAGES ARE SERIALLY NUMBERED.

AND

Signature of the ledger holder 142. KARDEX CARDS INDEX REGISTER The computerised Inventory Control and Stores Accounting system provides for the printing of index registers in respect of the Kardex maintained for the group / class of materials held by various Stock Holders on the following proforma :------------------------------------------------------------------------------------------------------Material Makers Brief Unit of Code Part No. Description measure ------------------------------------------------------------------------------------------------------143. KARDEX CARDS - MAINTENANCE OF 143.1 Kardex Cards will be maintained by MM Deptt. For each item two cards are provided, one at the top and the other at the bottom. The top card gives information regarding equipment, supply position against purchase order and monthly consumption of an item while in the bottom card receipt and issue vouchers are to be posted.

143.2 Separate sets of cards should be maintained under each class of material. 144. KARDEX CARDS - NUMBERING OF 144.1 The EDP section will ensure that an Index Register is provided to all the Stock Holding units in the Corporation with the computer. The Stock Holders will ensure that all additions in the Stock Cards are entered in the computer printed index register. On 1st April of every year, new Index Register will be prepared with the help of the computer. A record of Kardex Cards added and removed will also be maintained alongwith the Index Register in the following form :------------------------------------------------------------------------------------------------------Page : Material : Added : Removed : : Code : : : ------------------------------------------------------------------------------------------------------144.2 All the cards should have stamp of the project concerned and signed by MM Officer / Asstt. MM Officer. 145. KARDEX CARDS - OPENING OF 145.1 No cards will be opened for the first time for an item without the Stores Accounts and the EDP cells being advised to enable them to open a corresponding priced card in the PSL being maintained on the computer. Not more than one card may be maintained for one item at a time unless there is a difference in quality such as new, second hand etc. or it is found necessary by raising of different rates of credit to maintain separate records of stock. 145.2 Manuscript opening advice of new Stock Card should be prepared in duplicate indicating the material code, material description, maker's part number and Accounting Unit in STR-36. The MM officer should ensure that all Cards kept in the stores kardex are initialled by the supervisor and are kept up-dated. Blank cards are to be kept in proper custody. 146. CLOSING OF KARDEX CARDS 146.1 All Kardex Cards with 'nil' balance i.e. on which no transactions have taken place during the past three years and if the same have been added and Stock Verification carried out resulting in 'nil' balance during the last 3 years, will be removed from the cabinets and placed in a separate pad kept according to the different groups / classification of stores. 146.2 In case the material is again received against the same code for which the Kardex Card was removed on the above basis, a fresh card is required to be opened and intimation sent to the Accounts Ledger section and EDP.

When the Numerical Ledger Section of the MM Deptt. proposes to close a card manuscript closing advice be prepared on STR-37. 147. KARDEX CARDS - RECONCILIATION OF 147.1 Particular care should be taken to see that all completed cards are carefully stored chronologically in the order of Class and Code Nos. and are easily available for immediate reference, suitable Binders or Cabinet being used for this purpose. If office of the Accounts Officer is not situated in the same station, the completed cards should be sent to that office for reconciliation with the priced ledgers before being placed in the Binders or Cabinet for the completed sheets cases. The Materials Management officer will be responsible to see that proper arrangements are made for the safe despatch of the cards. Suitable Binders or Cabinets may be kept apart for the purpose in which the cards duly arranged by Classes and Code Nos. should be placed alongwith a manuscript list of such cards, which should show :i. Class

ii. Code No. iii. Description of item iv. Period of posting, commencing and closing voucher v. No. and date. vi. Opening Balance vii. Closing Balance. 147.2 The Binder or Cabinet should be locked or sealed before being sent to the Stores Accounts Officer. A spare copy of the list should be kept as office copy and another should be sent to the Stores Account Officer which should be returned by him duly signed in acknowledgement of the cards. When the numerical ledger cards are received back after reconciliation, these should be checked with office copy of the list. 147.3 In order to ensure that all vouchers of a particular month are completely received by the Accounts and EDP sections to enable processing of the transactions being done there, it is necessary to have a watch on the flow of vouchers through a system of completion certificate. The fortnightly completion certificates should be prepared in 4 copies on STR-38 and distributed as under :a) First copy - office copy;

b) Second and third copy to be sent to the Priced Ledger Section (PSL) who will arrange to return back one copy duly verified failing which it will be presumed that all the vouchers mentioned therein have been received by them. c) Fourth copy to the EDP cell who will watch for the flow of vouchers from the Accounts. 147.4 While reconciling numerical ledger cards with the priced ledger and noting the physical balance of Stock Verification it should be seen by Accounts Section and Stock Verifier that the cards bear the initials of the Supervisor / Incharge of the Numerical Ledger Section. 148. KARDEX CARD POSTING OF / PREPARATION OF ADJUSTMENT VOUCHERS : There should be no entry in the card ordinarily without a voucher for the transaction. The cards should be posted with great care, neatness being a very great factor, no overwriting should be allowed and in no circumstances should any entry of transaction be scored out. If by mischance any entry of transaction which would have been correctly made in another card but has been written in a particular card, the error should be corrected by back entry giving reference to the ledger card. Also an Adjustment Voucher in form STR-21 (SA-05) be prepared. All such corrections should be made under initial of clerk / Incharge of Numerical Ledger Section. All Receipts, Issues and other Vouchers should be posted chronologically according to their date and document No. Issue and Receipt against Material Transfer Note (STR-19) (SA-03) under which material is transferred from one project to another should be posted in green ink so that these transactions are not included in monthly consumption. All receipts should be posted first and then issues. The order of posting for various Vouchers should be as under :Posting Order 1. 2. 3. 4. 5. 6. 7. 149 Transaction Description 1. GRV 2. MTN-IN 3. Return Note 4. Material Adjustment Voucher (CRV) 5. Issue Voucher 6. Material Adjustment Voucher (CIV) 7. MTN for issuing materials

DUTIES OF NUMERICAL LEDGER POSTER He should post receipt and issue vouchers within 24 hours of the date to which they relate, unless any holiday happens to intervene. He should also keep "Recoupment Cards" (top cards), of the items in his charge, duly posted. He is responsible for timely placing of recoupment requisition in connection with the items in his charge.

150.

FILLING UP OF VARIOUS FORMATS FOR COMPUTERISED INVENTORY CONTROL. Instructions for filling up of various formats used in the computerised Inventory Control and Stores Accounting System are placed as on Addendum to the manual.

151. STOCK-STATUS REPORT 151.1 Transaction Vouchers should be processed on quarterly basis by EDP and Stock Status Reports for all items are to be sent on quarterly basis to all concerned including Regional MPP Cell for necessary action. 151.2 The lists of non-moving items / slow moving items should also be given to Regions on yearly basis. 151.3 The lists of non-moving / surplus items should be scrutinised and efforts made to utilise alternative available as far as possible. 152. SLOW / FAST MOVING ITEMS 152.1 In case of items for which Max. / Min. limits have been fixed, if Stock Holder finds that a particular item is moving slow and its limits have been fixed on the higher side, he will bring it to the notice of Head of the Stock Section who, in consultation with the concerned User department, will arrange to review the Max./ Min. limits so fixed. Similar action will be taken for items which are moving very fast and for which limits have been fixed on the lower side.

(MM/56/2010 dated 11.10.2010) 152.2 In-charge Warehouse, not below E-I (MM) level, will have full powers to declare as item of Stores and Spares as Slow-moving or Non-moving. These powers will be exercised in consultation with the Indentor and Finance. (Authority: Item MM3 of BDP-2009)

CHAPTER 6

PACKING OF MATERIALS

153.

PACKING SECTION In Regions separate packing section is necessary as mostly all the materials will be consigned to out stations and their packing load will be sufficiently large. However, in the case of Project Stores, the packing section may be a part of the Receipt, Stock and Issue sections.

154

PACKING OF MATERIALS

154.1 Before packing is commenced, it should be confirmed that quantities and nomenclature on the Issue Voucher agree with the materials. 154.2 In packing bay sufficient stock of packing materials such as straw, wood, cotton waste, paper, water proof paper, cartons etc. will always be maintained. 154.3 The packer should pay particular attention while packing the items of fragile nature. The material should be so packed that the material in the packages, while in transit, do not move or rattle. 154.4 Suitable packing boxes, crates and cartons will be used according to the nature and quantity of the materials to be packed. 154.5 One copy of the packing slip showing the contents of should be put inside the box. the particular box

154.6 The box is to be sealed after packing. Name of the consignee, name of the consignor, Station of Destination, Net weight / Gross weight and nature of materials specially when it contains items of fragile nature, will be written on the packages before despatch. 154.7 When packages are despatched by Rail, the same must be consigned to the Railway Station nearest to the consignee and under no circumstances, the postal address will be indicated on the packages. 154.8 When the packages are despatched by post, full postal address of the consignee is to be written on the parcel. 154.9 Stock Holder will check all packages for standard of markings. work and correct

154.10 The packages will then be handed over to the Clearing and Forwarding Section for onward despatch. 154.11 The Clearing and Forwarding Section will also check the address and the markings on the packages.

CHAPTER 7

GENERAL

CHAPTER 7
155. CONTROL OFFICE The Officer-in-Charge, MM (Stock) will see that the rules and regulations issued from time to time on Materials Management by the Corporation are followed by all the Sections under him to maintain proper control. All incoming and out-going dak should be routed through Central Diary Section of his office. 156. DRILL SITE MATERIALS 156.1 The Drill Site materials will stock materials for day to day requirement or for weekly needs of the project works. They are not supposed to stock materials for a long duration except mud chemicals. They will send their indent to the Materials Management from time to time to meet their needs. This indent is to be signed by the officer authorised for signing the indent. 156.2 All the materials consumed at the Drill Sites will be linked up with the Daily Log Sheets maintained for the operations. 156.3 The Drill Site materials will remain under the direct control of the Officer Incharge of the Operations at the site and he will be responsible for proper consumption of material issued to the Drill Site. 157. DISPOSAL OF UNSERVICEABLE MATERIALS The materials which become unserviceable during the process of operations have to be placed before the Survey / Condemnation Board to be formed by the Officer Incharge, who will probe into the unserviceability of the items and recommend disposal action. A policy on the subject has been issued separately. 158. ISSUE HOURS OF MATERIALS The officers responsible for the administrative control of the Materials Management (Stock) will fix up certain hours during the working period, for the issue of materials to enable the MM staff to make corresponding entries in the Kardex Cards during the day and keep the records up-to-date on day to day basis. 159. PAYMENT OF BILLS 159.1 The Corporation's standard policy for making payment for supplies is as under:-

FOREIGN BIDDERS ONGC offers the following terms of payment in order of preference:(i) Payment to the suppliers on "Collection Basis" through State Bank of India............................, India without opening of Letter of Credit is preferred. Wherever a Letter of Credit is required, it would be opened through the State Bank of India ..................., India. Payment of F.O.B. / C&F / CIF value, as the case may be, will be made against negotiable copy of Bill of Lading and other specified documents as per supply order through irrevocable Letter of Credit to be opened in favour of the supplier. All Foreign Bank charges towards advising negotiations / cable charges and confirmation of Letter of Credit charges will be borne by the supplier. All Indian Bank charges will, however, be borne by the ONGC. Where the supplies are proposed to be made in stages beyond three months, the bidders should quote staggered delivery schedule giving item-wise details / amount. The establishment of Letter of Credit in such cases will be restricted to the period-wise deliveries so offered quarter-wise. INDIAN BIDDERS 100% payment subject to prior satisfactory inspection and proof of despatch provided conditions laid down vide sub-paras (a) to (c) below are fulfilled:(MM/52/2010 dated 03.05.2010) (a) For orders (including Development orders) exceeding Rs.1.00 lakh, security deposit / performance bond @ 7.5% of the value of order in all cases with the exception of contracts for Turnkey constructions, Vessels, Rigs and platforms etc for which security deposit / performance bond @ 10% of the value of the order has been furnished. The goods are insured by supplier for losses, damages, breakages and shortages during transit at their cost and insurance cover in the name of ONGC sent alongwith documents ; and Documents are negotiated through State Bank of India.

(ii)

(iii)

(iv)

(v)

(b)

(c)

159.2 For part supplies i.e. less than instalments stipulated in the supply order, payment cannot be made. In other cases the payments for part supplies can be made depending upon the merits of the case and the nature of supplies in question provided at least 20% of the supplies have been completed.

159.3 However, the Head of Materials Management, in consultation with senior most Finance Officer in position, may also authorise 100% advance payment as under:159.3.1 Without prior satisfactory inspection subject to proof of despatch of materials in case of purchase of auto spares from reputable Original Manufacturers and not through their stockists provided the firm furnishes in advance guarantee to make good the deficiencies, if any or to replace the materials which on receipt are found to be either wrongly supplied by them or are rejected on inspection by the consignee; 159.3.2 Through issue of A/Cs Payee Cheque / Bank Draft in favour of the manufacturer alongwith Supply Order for the purchase of proprietary articles like Ambassador Cars where acceptance of order / registering of requirement is subject to 100% advance payment alongwith the order. In such cases inspection of material will be carried out and guarantee of the performance of equipment invariably obtained from the manufacturer before despatch of the material by them. 159.3.3 Without prior satisfactory inspection and proof of despatch in cases of purchase of materials like cement and steel from Govt. Agencies or Public Sector Undertakings. 159.3.4 Through issue of A/Cs Payee Cheque / Bank Draft in favour of the suppliers against their Sale Order and / or proforma Invoice in cases where delivery of the stores is to be obtained on satisfactory inspection and payment. 159.3.5 For advance payment to Public Sector Undertakings no Bank Guarantee is essential. However, Security Deposit / Performance Bond will invariably be obtained before making advance payment. 159.3.6 The Regional Director(s) will have full powers to decide each case on merit for advance payments subject to the condition that any deviation from the provision in paras 158.2.1 to 158.2.5 above shall be reported to Director (Finance). 159.3.7 In all other cases it must be ensured that payment is made within 30 days from the date of receipt of material at destination if found in satisfactory condition after inspection. 160. RAILWAY CREDIT NOTES

(MM/56/2010 dated 11.10.2010) MM Officer of E-0 level, or above, will have full powers to sign Railway Credit Notes. The executive deputed for sampling / bonding/de-bonding chemicals are also empowered to sign Railway Credit Notes. The powers are subject to the condition that in case of demurrage / wharfage etc. the case

shall be processed concurrently for regularisation Competent Authority. (Authority: Item MM7 of BDP-2009)

under

orders of

CHAPTER 8

COMPUTERISED INVENTORY CONTROL

CHAPTER-8
COMPUTERISED INVENTORY CONTROL 161. (i) Annexure of Order Schedule Instructions as under are necessarily to be followed Annexure of the order schedule :a) while preparing

Vendors code is to be mentioned in 6 Alphanumeric fields. Structure of vendors code consists of first 2 character denoting the project code of unit placing the supply order, the 3rd place denoting the source of supply and the 4th, 5th, 6th being continuous serial number for each source of supply. List of Alpha-numeric code to be operated in 3rd place is as indicated hereunder. In case of imports, the country of origin has been identified with Alpha character and in case of indigenous source, with numeric digit. No unit is authorised to either use any code which has not been prescribed or to allot fresh code themselves. For example, if an order is being placed on an Italian firm having Serial No. '202' by Drilling Business Group, the vendor code will be 'DZI202'. Similarly, if a Supply Order is being placed by Technical Business Group, on Indian party having rate contract with ONGC with an allotted serial number of '193', the vendor code would be TZ5193'

(b)

Supply Order code is to be indicated in 9 Alfanumeric character. The first three characters remain same what has been prescribed for vendors code i.e. the first two fields will be the authorised Project code and the third will be source code. 4th and 5th places are prescribed for identifying the various Sub-Purchase Sections within an authorised accounting unit. For example, for a Supply Order placed on a DGS&D rate contract party by 'Geopic Division' assuming section code 'EG' given and the control number for Supply Order being 1234, the Supply Order code would be 'E43EG1234'. Another example, if a Supply Order is placed by EBG Sub-Purchase Section 'A' on an Australian firm and Supply Order Control number being 5678, the Supply Order code would be EZAEA5678. The third pre-requisite is the account head to which the cost is debitable for budget control purpose. If the Supply Order is totally for Capital item, "Capital" is to be indicated and if it is for totally stores and spares "Stores & Spares" would be indicated. If the order is for capital equipment with operational spares indicated "Capital with Spares" would be given. Details of items ordered will be indicated by operating continuous serial number without sub-serial number (alpha or Roman). However,

(c)

(d)

Capital item will be listed out first followed by Stores and Spares. In case of Capital item, in column '2', asset class as per asset directory will be mentioned and in case of Stores and Spares material code as per material code directory. For new items not covered under the existing directives, order can be placed only after getting the Asset Class allotted from Corporate Central Accounts in case of capital item and Material Code from Reference Book Cell of Technical Business Group for Stores and Spares item. It may be noted in this regard that no reference for allotment of Asset Class code and / or Material Code should be referred to Corporate EDP Section. (e) The Annexure of order schedule also indicate details of distribution of ordered quantity to different ports and different consignees. This form is required to be filled even if the port destination is one as well as ultimate consignee is one. Serial number, as indicated above, should be maintained in this form also and quantity ordered as per column '2' of this form will be same as above. The distribution of quantity for various ports should tally with total ordered quantity and distribution to ultimate consignee from one port should tally with the total quantity mentioned against one port. The prescribed procedure of indication of Vendors code, Supply Order code and Account Head to which cost is debitable, is to be strictly followed for all Supply Orders to be placed. All Supply Orders invariably should have Annexure duly filled in. It will be ensured that Supply Orders to Corporate EDP Section are not sent in piecemeal. All Supply Orders copies meant for EDP Section will be delivered first to Coordinator within the Business Group. Coordinator will transmit the Supply Orders onward in one lot on fortnightly basis. Fortnight for this purpose would be 1st to 15th and 16th to end of the month. The Supply Order lots for a fortnight will be forwarded to EDP Section within 5 days of end of fort-night alongwith number and ending control number of Supply Order. (g) All amendments issued to main supply orders will be numbered serially separately so that a proper control and watch can be kept on amendments. All amendments should also be sent to EDP Section through the Coordinator of the Business Group on fortnightly basis alongwith Supply Order lot. Full details of amendment numbers for each Supply Order should also be mentioned in the forwarding letter. Vendors code and original Supply Order code should be mentioned on the Top left corner of amendment. The order rate column can be further expanded to indicate the rate basis for contractual purposes e.g. CIF / FAS / FOB / FOR station of despatch etc. The rate column is optional.

(f)

(h)

(i)

(j)

Delivery Date - The date of delivery should be indicated as per contractual terms e.g., "5 months from the date of opening of confirmed LC etc." and after this portion, the expected date of delivery should be shown separately or otherwise the only date shown will be taken as the completion date for all items. Various other instructions to the suppliers e.g., packing & forwarding charges, Insurance charges or other conditions may be shown after typing out all items on order. The total value of order may also be exhibited, if so desired.

(k)

(ii)

Besides the schedule of items ordered, the distribution statement of quantities ordered consignee-wise should also be shown. This also forms part of the contract to enable the supplier to despatch the materials to the different consignees. The code for computer processing has to be shown for the Port- consignees as well as the Ultimate consignees as per details indicated hereunder. In case of entire order being consigned to only one consignee, the consignee's particulars may be shown in the body of the contract order in detail and the consignee codes may be indicated in the Annexure to supply order. Besides this, each order sent to EDP Cell will have following information for EDP purpose:a) Vendor Code: As per the codification done by the Purchase Department. If this is not available, it may be kept blank. b) Schedule of extra charges: The codes for schedule of extra charges are indicated hereunder. These should be calculated for the entire order and be filled in appropriately. It will be seen that separate set of codes have been given for extra charges that are payable to the suppliers and extra charges that are not payable to the supplier but are to be reckoned for evaluating the total cost of stores e.g. Customs Duty and Port Charges. Care should, therefore, be taken to fill up the codes correctly in this regard. Even if the quantum of charges are not fixed but are to be paid on actual basis, the Purchase Officer should fill-in the Code on estimated basis. Since this information is not based for effecting payment, estimated charges will be adequate for the internal purposes. c) Covering Indent Numbers: At present indent numbers have not been codified. As and when indent numbers are codified and indents are received in the Purchase Department, with the codified numbers, these may be filled in. For the time being the existing numbers may be filled in. d) Code for LC conditions: If payment is to be done through LC, fill up otherwise 'O' has to be given.

(iii)

e) Code for supply condition To be filled as under: For Ex Factory for FOR Station of despatch for FOR Receiving Station for F.A.S. for C.I.F. for C.F. for F.O.B. for any other supply condition not listed above f) Currency The code for currencies should be as per the instructions indicated hereunder. g) Rate of Exchange The rate of exchange in case of currency other than rupee has to be indicated here. The exchange rate is the number of Indian Rupee upto 5th decimal place for one unit of Foreign Currency in which payment is made. For example, if one US$ = Rs.9.10, write 910000. The last 5 digits must never be left blank. h) CONSIGNEE CODE To be filled in only in case of entire order consignee. being allocated to one - 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8

ANNEXURE A ALPHA CODES FOR COUNTRY OF ORIGIN i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) xv) xvi) xvii) xviii) xix) xx) xxi) xxii) xxiii) xxiv) xxv) xxvi) Argentina Australia Austria Belgium Canada Dubai England France O A T B C Z E F

Finland L Denmark M Germany G Hungry H Hong Kong Q Italy I Japan J Netherland N Poland P Rumania R Singapore S Switzerland W Thailand D USA K USSR U Czechoslovakia Y Spain V Other X CODES FOR SOURCES OF SUPPLY DGS&D ONGC Rate Contract Registered Suppliers with ONGC 3 5

i) ii) iii)

0,1 & 2

(First two fields of vendors code being PC, next four places will be operated starting from 0001 to 2999 continuously) (Same as per (iii) above code '8001' to '9999' to be operated after PC).

iv)

Non-Registered suppliers

8&9

APPENDEX A 2 LIST OF STANDARD UNITS OF MEASURES USED IN ONGC Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Unit of Measures Number/Pieces/Tins/Barrels/Cans Meters Metric Tonne Kilo Gramme Pairs Litres Set Kit Roll/Reel Gramme Milli Litre Pounds(Weight) Packets Square Feet Cubic Meter Square Meter Gross Dozen Phail Cubic Feet Yards Feet Chain Links Short Ton AN NO MR MT KG PR LT ST KT RL GM ML LB PK SF CM SM GR DZ PH CF YD FT LK TN

ANNEXURE B BUSINESS GROUP WISE CODES FOR VARIOUS PURCHASE SECTIONS OF THE MATERIALS MANAGEMENT ___________________________________________________________________ Group Sub-Group Existing Proposed Section Code Code ___________________________________________________________________ Exploration E-I EA EA E-II EB EB E-III EC EC E-IV ED ED Geo Science Division EE EE (NRBC)EBG(L)-Purchase Group Drilling D-I D-II D-III D-IV D-V D-VI D-VII Op-I Op-II Op-III Tec.I Tec.II Tec.III Tel Bhavan Central Stores EF DA DB DC DD DE DF DG GA GB IA CA EF DA DB DC DD DE PA PB PC TA TB TC GB GB IA -

Operation

Technical

General Import Substitution Contract

The alphabets E,D,P,T,G and I denote codes for Exploration, Drilling Operation and Technical Business Groups and General and Import Substitution Purchase Sections respectively. These alphabets have further been suffixed with alphabets `A' onwards depending upon the number of existing Purchase Sections. Alphabets further to above may be suffixed with the codes of Business Group/purchase sections in case new Purchase Sections are opened.

ANNEXURE C CODES FOR PORT CONSIGNEE _______________________________________________________________ Sl.No. PORT CODE _______________________________________________________________ 1. Bombay( Mumbai) BM 2. Calcutta CL 3. Vizag VZ 4. Madras (Chennai) MD 5. Kandla KN 6. In case of indigenous ND 7. New Delhi ND NB: Alpa codes are to be used only for clearing and forwarding purposes by the Port Office.

LIST OF PROJECT CODES


Region HQRS HORS WORK CENTRE DEHRADUN KDMIPE IDT GEOSCIENCE (NR) JUMMU JAWALAMUKHI ANKLESHWAR BARODA CAMBAY AHMEDABAD JODHPUR MEHSANA CENTRAL WORKSHOP C&M DIVISION HAZIRA IRS AHMEDABAD DELHI EASTERN REGION DELHI SIBSAGAR CENTRAL WORKSHOP GEOSCIENCE DIVN. JORHAT DHANSIRI VALLEY SILCHAR CENTRAL REGION WEST BENGALTRIPU RA GANDAK CALCUTTA OFFSHORE T&S OFFICE CALCUTTA GEOSCIENCE CALCUTTA EXPLORA TION EZ DRILLING DZ OPERATIO NS PZ TECHNICA L TZ COMMON SERVICES XZ OTHER S 54 D6 E6

NORTHERN REGION WESTERN REGION

EA EB EC ED EG EE -

DU DU DA DB DC DD DG DE -

XU -

ER ES EW

-DR DR -

EN -

SOUTHERN REGION

MADRAS OFFSHRE GEOSCIENCE MADRAS CAUVERY K.G. PROJECT BOP PORT OFFICE MUMBAI

EK EY -

DM DV DK DY -

PM PK FY -

MUMBAI

ANNEXURE - D I) CODES FOR EXTRA CHARGES PAYABLE TO THE SUPPLIERS _______________________________________________________________ Sl.No. Description Code Unit of measure _______________________________________________________________ 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Sales Tax Clearing & Forwarding Charges Insurance Customs Duty Excise Duty Port Charges Octroi C.S.T. Freight Charges Commission Concession 888 888 8013 888 888 8027 888 888 8031 888 888 8045 888 888 8059 888 888 8063 888 888 8077 888 888 8081 888 888 8095 888 888 8104 888 888 8118 XX XX XX XX XX XX XX XX XX XX XX

II. CODES FOR EXTRA CHARGES NOT PAYABLE TO THE SUPPLIERS BUT ARE RECKONED FOR EVALUATING THE TOTAL COST OF STORES 1. 2. 3. 4. 5. 6. Insurance Customs Duty Port Charges Octroi Freight C.S.T. 777 777 7038 777 777 7042 777 777 7060 777 777 7074 777 777 XX XX XX XX

Note : 1. Other Codes can be added as per requirement. 2. Tenth digit of this Code is the check digit. 3. Unit of measure is to be put for all above special codes for computerised information.

ANNEXURE - E CODES FOR FOREIGN CURRENCY ------------------------------------------------------------------------------------------------Sl.No. Foreign Currency Symbol -----------------------------------------------------------------------------------------------1. Argentina Peso AP 2. Australian Dollars AD 3. Austrian Schillings AS 4. Belgium France BF 5. Canadian Dollars CD 6. Czeck Kroners CK 7. Dutch Gliders DG 8. Danish Kroners DK 9. Dubai Dollars DD 10. Deutshe Marks(W.German) DM 11. East Germany Marks EM 12. Espana Dollar VD 13. French France FF 14. Finland Markka FM 15. Hong Kong Dollars HD 16. Hungary Forint HF 17. Indian Rupees RS 18. Italian Liras IL 19. Japanese Yen JY 20. Malaysian Dollars MD 21. Norweign Kroners NK 22. Pound Sterling PS 23. Poland Zloty PZ 24. Russian Roubles RR 25. Rumanian LEU RL 26. Singapore Dollars SD 27. Swiss Francs SF 28. Swedish Kroners SK 29. Thailand Baht TB 30. U.S.Dollars UD 31. Norweian Korea NK

CHAPTER 9

e-PROCUREMENT

CHAPTER 9 e-PROCUREMENT 162 E-Procurement:

162.1 The Purchase Requisitions (Indent) for SRM (E-Procurement Module) tenders will flow automatically from SAP-R/3 system. The process for approval of BECs, Evaluation matrix etc. will take place as per existing process. After due approval, all related documents will be up-loaded in the system by the dealing officer. Thereafter the dealing officer will prepare the bid-invitation and upload the same after affixing digital signature as per the IT Act, 2000. 162.2 The NIT in respect of all tenders of value more than Rs 5 lakhs shall be published on the ONGC tender website (www.ongctenders.net). The tender website shall have a link to SRM server. Prospective bidders who intend to participate in the Open Tenders can logon to SRM server with Guest user ID and view the documents and may request for access through the portal by providing basic information about them. Thereafter, user ID and password will be issued to them. The vendors will also be given necessary help for understanding the system. (MM/27/2007 dated 30.03.2007) 162.3 For e-procurement tenders, the tender fee shall be specified in Indian Rupees amount as specified at para 40 of MM Manual, corresponding to the value of the tender. The tender fee shall be collected through online payment gateway only, in case of e-procurement tenders. The prospective bidders can create their bid online only after payment of tender fee. Indian Agents can not purchase tender documents on behalf of their foreign principals, in case of eprocurement tenders. The payment of tender fee through electronic payment gateway can be made using Credit Cards or Bank Transfers. Foreign bidders are also allowed to purchase tender document by making e-payment using Credit Cards issued either in India or outside India. Any subsequent reversal/non-realisation of e-payment would lead to rejection of bids submitted by such bidders. No separate proof for sale of bidding document shall be required to be submitted along with the bid made by bidders in e-procurement tenders. (MM/68/2012 dated 05.10.2012) 162.3.1 MSEs registered with District Industry Centers or Khadi and Village Industries Commission or Khadi and Village Industries Board or Coir Board or National Small Industries Corporation or Directorate of Handicrafts and Handloom or any other body specified by Ministry of MSME who intend to

claim exemption from payment of tender fee, must furnish the evidence that they are registered for the items they intend to quote. Such documentary evidence should be submitted to ONGC at least 7 days in advance of date of closing of sale of bid documents. The Govt. Deptts. will also be exempted from the payment of tender fee. 162.4 In the NIT published on the website, the name, designation and e-mail address of the designated Administrator who is to be contacted by bidders, as nominated by concerned In-Charge (MM) for the particular tender, should be indicated. 162.5 As all tender conditions including the standard booklet conditions will be made available on the e-procurement portal which can be accessed by the vendors, hence it will not be necessary for the bidders to separately purchase the standard booklets (as is the case in respect of other tenders i.e. against a fee of US$ 10.00 from foreign bidders and Rs. 500.00 from Indian bidders). 162.6 It shall be insisted that all bidders participating in e-tenders should submit bids only in e-form. Compliance/confirmation for pre-qualification criteria and technical / commercial BEC should be insisted in e-form only. Only Bid Bond, Power of attorney of signatory or any specific third party document insisted in Originals as per tender condition alone shall be accepted in physical form. For submitting the bids, the vendors will also require digital signature. The system shall assist in evaluation of bids by providing price comparisons and other relevant reports. All such reports, TC recommendations and approvals which will be outside system, will be subsequently uploaded in the system by the dealing officer. 162.7 After finalization of tender, the supply orders will be issued through SAP R3 system. 162.8 The activity wise responsibilities in the e-procurement system are defined as at Annexure-A. 162.9 Other provisions of MM Manual and Instructions issued from time to time, shall be followed by all concerned, as in case of non e-procurement tenders. (MM/55/2010 dated 05.07.2010) (Provisions appearing under 162.10 (i.e. sub-paras 162.10.1 to 162.10.21 deleted)

162.11

Implementation of e-procurement

162.11.1 e-procurement would be implemented across ONGC in a phased manner (schedule would be notified separately by ICE) for all cases of procurement of materials, services and turnkey contract exceeding Rs.100 lakhs.

162.11. 2 However, in case it is felt by a work center not to resort to eprocurement method of tendering for cases exceeding Rs.100 Lakhs, approval of concerned Director would be required. (Provision 162.11.3 deleted vide MM/55/2010 dated 05.07.2010) (MM/55/2010 dated 05.07.2010) 162.11.4 All cases for procurement of materials / services on single tender nomination, OEM / OES and PAC basis shall be exempted from eprocurement. 162.12 Bid Return Procedure:

(MM/39/2009 dated 24.06.2009) 162.12.1 The duly completed bid with no system error message can be submitted in SRM any time before the submission deadline is reached. The bidder shall also be permitted to make changes in his bid and re-submit the same in SRM till the submission dead line. The final submitted version of bid only shall be considered by ONGC. (MM/55/2010 dated 05.07.2010) 162.13 Familiarization/training of vendors 162.13.1 With the assistance of ICE team, training for vendors shall be facilitated to meet: a. b. Online help documentation for bidder registration to SRM portal including process of obtaining digital certification. Training to all prospective bidders during pre-bid conference to access data and also upload bid parameters and documents in Cfolders. (Provision deleted vide MM/55/2010 dated 05.07.2010)

c.

(MM/55/2010 dated 05.07.2010) 162.14 The due date and time for price bid opening should be intimated well in advance to the bidders, through the System.

Annexure-A The activity wise responsibilities in the e-procurement system:

Sl No

2 3 4 5 6

10 11 12 13

Manual Responsibility (M) Electronic (E) Consolidation of PR in ICE E The documents as stated will be furnished by the indenting deptt in the ICE system and consolidation will be done by respective MM departments. BEC Formulation M By nominated TC members. BEC Approval M By CPA Generation of Tender No in E Dealing Officer ICE Create Bid Invitation in SRM E Dealing Officer Uploading of scanned copies E Dealing Officer of all related noting/documents of TC after approval in C-folders (internal area) Uploading and preparation of E Dealing Officer complete tender document in C-folders (digitally signed) Release of tender documents E Dealing Officer in C folders of the system for publishing tender in SRM Publish the tender in SRM E/M NIT will be published at the site (Digitally signed) and as per www.tenders.ongc.co.in which will procedure at website and have a link with SRM server. news papers Tender documents will be published in SRM by the dealing officer. The NIT shall also be published in press as per existing guidelines E mail/Fax to prospective E/M Dealing Officer vendors Access authorization to E Dealing Officer in consultation with vendors ICE team. Acceptance of tender fee via E Automatic payment gateway Granting tender fee E Dealing Officer exemption, if any in ICE (MM/39/2009 dated 24.06.2009)

Activity

Sl No

Activity

Manual (M) Electronic (E)

Responsibility

14

15 16

17

Create pre bid query authorization for authorized vendors in C folders so as to allow them to raise pre bid queries.(Authorized means those vendors who have paid tender fee or who have been allowed to participate in particular tender without tender fee.) Receive pre bid queries in SRM system Loading of pre bid queries in internal folder for indentor to view and comment Pre Bid conference

Auto, upon creation of bid by bidder.

E E

Auto Indentors shall be authorized to view the queries by the dealing officer As per present practice, pre-bid conference is held in the presence of interested vendors who have purchased tender document. In ONGC tenders sometimes due to complexity of cases discussion with vendors ensures better understanding about the tender conditions. Present system to continue. Dealing Officer

18

19 20

21

22

23

Upload pre bid conference MOM in c-folders after approval with restricted access to authorized bidders only. Give access to authorized vendors to view above Mail sent to authorized vendors intimating loading of MOM Issue all amendments to tender documents, if any, made in system after approval Mails sent to vendors intimating loading of amendments in C folders/SRM Vendors create bids in SRM

E E

Dealing Officer Dealing Officer

Dealing Officer

Dealing Officer

Vendor

Sl No

24

25

Manual Responsibility (M) Electronic (E) Vendors submit their bid E Vendor (only those who have paid tender fee or those who are authorized to participate) Opening of techno E Dealing Officer in presence of TC commercial bids on specified members. date and time in system. (C folders of Bidders) (MM/60/2011 03.06.2011) dated

Activity

26

Opening of Original documents permitted to be submitted in physical form, at 1500 Hrs. on 7th calendar day after opening of bids submitted through the ebidding portal Access given to concerned Indentor & Finance for viewing bids. Uploading of bid opening report in C folder with restricted access to bidders who have submitted the bids. Bid opening report will contain only names of the bidders. Compilation of bid evaluation Matrix

Nominated Officers.

Tender

opening

27

Dealing Officer

28

Dealing Officer

29

30

Uploading of Above in internal area of C folders (MM/39/2009 dated 24.06.2009) Technical Evaluation and uploading of technical comments TC proceedings and approval of it Asking for confirmations/

(MM/49/2009 dated 02.12.2009) Tender Opening officers (Assisted by respective dealing officers/ dealing assistants). Dealing Officer

31

M/ E

By Technical Evaluator

32 33

M E

TC meeting will be held as per procedure. Dealing Officer

Sl No

Activity

Manual (M) Electronic (E)

Responsibility

34

deficient documents, if any, through system from any bidder through bidders correspondence area. Response of bidder also through system. TC proceedings for short listing of Bidders and its approval from CPA and its entry into the system (MM/55/2010 05.07.2010) dated

M/E

TC meeting as per procedure. Dealing Officer after approval from CPA will enter proceedings in C folders and mark not acceptable bidders.

35

Notification of opening date. (MM/55/2010 05.07.2010)

Price

bid

Dealing officer

dated

(MM/55/2010 dated 05.07.2010)

36

Opening of price bid of short listed vendors on given date and time.

In SRM, the price bids are opened as per SRM procedure by dealing officer after the pre-fixed opening time and short listed bidders are entitled to participate in the automatic opening of price bid and the prices quoted by different bidders are read out to all.

(MM/55/2010 05.07.2010) 37

dated

Calculate Evaluated price as per BEC and vetting thereof. Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010

Dealing officer / Finance officer

38

Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated

39

40

41

Sl No

Activity

Manual (M) Electronic (E)

Responsibility

dated 05.07.2010 42 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 TC to examine above for recommendation In case of EPC cases, Uploading EPC agenda after endorsement Upload scanned copies of TC minutes, EPC decision etc Acceptance of bids in System Placement of LOA/contract PO/Contract in System E/M E E

05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 Deleted vide MM/55/2010 dated 05.07.2010 TC Dealing Officer

43

44

45

46 47

48 49 50 51

E E M E

Dealing Officer Based on MP5 of BDP Existing practice of manual LOA to continue. Dealing Officer

CHAPTER 10

PROCUREMENT OF PREMIUM BITS ON CONSIGNMENT BASIS

CHAPTER 10
(MM/26/2007 dated 11.01.2007)
163 Procurement of Bits on Consignment basis 163.1 Offers shall be invited from bit-manufacturing companies on ICB basis. 163.2 Estimated annual off-take shall need to be indicated in the NIT and tender document so as to enable the bidders to get an idea of the volume of expected business at the time of bidding. Estimated initial order quantity, separately for PEL/ML areas and non-PEL/ML areas, shall also be indicated in the tender documents. 163.3 It shall be made clear in the tender documents that there shall be no minimum guaranteed off-take by ONGC. Payment shall be released by ONGC only for the actual quantity consumed or retained beyond 9 months by ONGC as per contract provisions. 163.4 Evaluation of offers will be based on the Criteria for Ranking of Bidders and Details and Documents to be submitted for evaluation of Bits, as per Annexures to this Chapter (i.e.Annexure-A-1 and Annexure-A-2 respectively). 163.5 Two Bids System shall be followed in the Price Bid and bidder shall submit the price list of the offered products. The price list shall cover the sizes required by ONGC for TCR & PDC bits under their product range. Bidder shall submit separate sealed price covers for each size of Bits, say 17 , 12 , 8 & 6. For any other sizes Annexure A-1 & A-2 will be framed by Bit Committee [as constituted by Director (T&FS)] on requirement basis. 163.6 Bidders shall be technically ranked as per the net marks scored against the evaluation criteria placed at Annexure-A-1. Bidder(s) scoring highest net marks will be ranked as TR-1, the next highest as ranked as TR-2 and so on. 163.7 Contract is to be awarded to the top ranked bidder as per procedure given below: (a) In case only one bidder is ranked as TR-1, the price bid of such bidder shall only be opened. (b) In case of tie in bidders ranked as TR-1, price bid of bidder ranked as TR-1, with highest marks in B in respect of bit specific information as per the evaluation criteria specified at Annexure-A-1, shall only be opened.

163.8 For assessing the reasonability of prices, bidders may be asked to submit documents establishing the prices at which the bidder has supplied same or similar type of bit to other Oil / Gas company in last 2 years. In case the quoted prices are found to be on higher side in comparison to the supply prices of bidders as above or the LPR of same Bit, negotiations may be carried out by tender committee with the approval of Competent Authority, as per the prevalent MM guidelines. 163.9 As only one bid i.e. ranked # 1 shall be considered for award of contract, the Competent Purchase Authority shall be determined as per the powers applicable in case of Single Tender, i.e. as per clause MP4 (d) of BDP. 163.10 Supplier shall mobilize the initial quantity within 35 days of placement of S.O. Subsequent call-out orders shall be placed by the authorized representative of ONGC, as and when required. Such call out quantity has to be delivered within 15 days of issue of call-out order. 163.11 Required quantities of each type of bit shall be drawn from the stock maintained by supplier. 163.12 The inspection of bits shall be carried out by ONGC representative after receipt of bits in India. 163.13 Selection of suitable TCR/PDC bit of any size from the available lot of bits will be made by ONGC. 163.14 (a) Payment: In case of supplies to be made in PEL/ML areas, customs duty is not payable by ONGC. However, for supplies to be made in non-PEL/ML areas, customs duty charges shall be borne by the supplier. When customs duty paid bit is used by ONGC, the catalogue bit price shall be paid to the supplier alongwith customs duty against documentary evidence. In order to avoid the customs related problems like payment of customs duty in case of unused bits imported for PEL/ML areas and claiming of duty draw back in respect of unused bits imported for non-PEL/ML areas (i.e. imported and stocked by supplier against call out by ONGC, but not actually drawn by ONGC till the expiry of Consignment Rate Contract), the imported bits, not exceeding the initially ordered quantity, shall be retained by ONGC since the same can be put to use by ONGC, in view of the fact that bits are consumed on regular basis. However, the initial quantity should be ordered in such a way that the leftover quantity at the end of the contract period is bare minimum.

(b)

(c)

(d)

Invoice shall be raised by supplier on monthly basis for bits consumed during the month and the bits retained by ONGC at the end of contract period as per (c) above. Quantity for which payment shall be made to the supplier should not exceed the ordered quantity.

(e)

163.15 Provision shall also be kept for outright purchase of suitable left over bits at the end of contract period, at the sole option of ONGC. Quantity of bits retained at the end of contract period shall not exceed the initially ordered quantity against the contract. 163.16 Contract duration shall be 3 years from the date of notification of Award of Rate Contract, without any provision for price escalation and also without any provision of extension of the contracts.
163.17 Other provisions of MM Manual and Instructions issued from time to time shall be followed by all concerned, as in case of other tenders.

Annexure A- 1

Criteria for Ranking of Bidders


A. General Information: Sl. Parameters Allocation of Marks No. 1 Experience of Bit Highest among the Manufacturer bidders (Minimum Required Others experience Five Years) 2. Sales volume of Highest among the Bits for the last bidders three years Others 3. Expenditure on R&D for the last three years Highest among the bidders Others Weightage Factor 0.05 Marks

100 Percentage to the highest 100 Percentage to the highest 100 Percentage to the highest

0.05

0.10

Total (A) (For 1 to 3 above)

0.20

B.
B. 1 Sl. No. 4.1

Bit Specific Information


For 17-1/2 Bit Parameters No. of Bits used for deep formation drilling (Last three years) Depth in 2000 M & above. Allocation of Marks Highest among the bidders Others 100 Weightage Factor 0.20 Marks

Percentage to the highest 100 0.20

4.2

Supply of bits (Nos.) during last 3 years to below mentioned leading companies: 1. Shell 2.Cheveron 3.BP 4.Agip 5. Totalfina 6.Statoil 7.Petrobras 8.Unocol 9.Exxcon Mobil 10.Kerr Mcgee Supply of bits to Indian Companies during last 3 years (Nos.) Offshore

Highest among the bidders

Others

Percentage to the highest

4.3

Highest among the bidders Others Highest among the bidders Others

100

0.05

Onshore

Percentage to the highest 100

0.05

Percentage to the highest

4.4

Performance of bits (Last three years)

Sl. No.

Parameters Best Five bits depth in 2000 M to 3999 M Total Meterage

Allocation of Marks Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others 100

Weightage Factor 0.03

Marks

Average ROP

Percentage to the highest 100

0.03

Best Five bits depth in 4000 M to 4999 M

Total Meterage

Percentage to the highest 100

0.05

Average ROP

Percentage to the highest 100

0.05

Best Five bits depth in above 5000 M

Total Meterage

Percentage to the highest 100

0.07

Average ROP

Percentage to the highest 100

0.07

Percentage to the highest 0.80

Total (B.1) (For 17-1/2 Bits) B. 2 Sl. No. 5.1 For 12-1/4 Bit Parameters No. of Bits used for deep formation drilling (Last three years) Depth in 2000 M to 4000 M.

Allocation of Marks Highest among the bidders Others Highest among the bidders Others Highest among the bidders 100

Weightage Factor 0.15

Marks

Depth in 4000 M & above.

Percentage to the highest 100

0.15

5.2

Supply of bits (Nos.) during last 3 years to below mentioned leading companies: 1. Shell 2.Cheveron 3.BP 4.Agip 5. Totalfina 6.Statoil 7.Petrobras 8.Unocol 9.Exxcon Mobil 10.Kerr Mcgee

Percentage to the highest 100

0.10

Others

Percentage to the highest

Sl. No. 5.3

Parameters Supply of bits to Indian Companies during last 3 years (Nos.) Offshore

Allocation of Marks Highest among the bidders Others Highest among the bidders Others 100

Weightage Factor 0.05

Marks

Onshore

Percentage to the highest 100

0.05

Percentage to the highest

5.4

Performance of bits (Last three years) Best Five Total bits depth Meterage in 2000 M to 3999 M Average ROP

Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others

100

0.03

Percentage to the highest 100

0.03

Best Five bits depth in 4000 M to 4999 M

Total Meterage

Percentage to the highest 100

0.05

Average ROP

Percentage to the highest 100

0.05

Best Five bits depth in above 5000 M

Total Meterage

Percentage to the highest 100

0.07

Average ROP

Percentage to the highest 100

0.07

Percentage to the highest 0.80

Total (B.2) (For 12-1/4 Bits)

B. 3 Sl. No. 6.1

For 8-1/2 Bit Parameters No. of Bits used for deep formation drilling (Last three years) Depth in 2000 M to 4000 M.

Allocation of Marks Highest among the bidders Others Highest among the bidders 100

Weightage Factor 0.07

Marks

Depth in 4000 M to 5000 M.

Percentage to the highest 100

0.10

Sl. No.

Parameters

Allocation of Marks Others Depth in 5000 M & above. Highest among the bidders Others Highest among the bidders Percentage to the highest 100

Weightage Factor

Marks

0.13

6.2

Supply of bits (Nos.) during last 3 years to below mentioned leading companies: 1. Shell 2.Cheveron 3.BP 4.Agip 5. Totalfina 6.Statoil 7.Petrobras 8.Unocol 9.Exxcon Mobil 10.Kerr Mcgee Supply of bits to Indian Companies during last 3 years (Nos.) Offshore

Percentage to the highest 100

0.10

Others

Percentage to the highest

6.3

Highest among the bidders Others Highest among the bidders Others

100

0.05

Onshore

Percentage to the highest 100

0.05

Percentage to the highest

6.4

Performance of bits (Last three years)

Best Five bits depth in 2000 M to 3999 M

Total Meterage

Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others

100

0.03

Average ROP

Percentage to the highest 100

0.03

Best Five bits depth in 4000 M to 4999 M

Total Meterage

Percentage to the highest 100

0.05

Average ROP

Percentage to the highest 100

0.05

Best Five bits depth in above 5000 M

Total Meterage

Percentage to the highest 100

0.07

Percentage to the highest

Sl. No.

Parameters Average ROP

Allocation of Marks Highest among the bidders Others 100

Weightage Factor 0.07

Marks

Percentage to the highest 0.80

Total (B.3) (For 8-1/2 Bits)

B. 4 Sl. No. 7.1

For 6 Bit Parameters No. of Bits used for deep formation drilling (Last three years) Depth in 2000 M to 4000 M.

Allocation of Marks Highest among the bidders Others Highest among the bidders Others Highest among the bidders Others Highest among the bidders 100

Weightage Factor 0.07

Marks

Depth in 4000 M to 5000 M.

Percentage to the highest 100

0.10

Depth in 5000 M & above.

Percentage to the highest 100

0.13

7.2

7.3

Supply of bits (Nos.) during last 3 years to below mentioned leading companies: 1. Shell 2.Cheveron 3.BP 4.Agip 5. Totalfina 6.Statoil 7.Petrobras 8.Unocol 9.Exxcon Mobil 10.Kerr Mcgee Supply of Offshore bits to Indian Companies during last 3 years Onshore (Nos.)

Percentage to the highest 100

0.10

Others

Percentage to the highest

Highest among the bidders Others Highest among the bidders Others

100

0.05

Percentage to the highest 100

0.05

Percentage to the highest

7.4

Performance of bits (Last three years) Best Five Total bits depth Meterage in 2000 M to 3999 M Average ROP

Highest among the bidders Others Highest among the bidders Others

100

0.03

Percentage to the highest 100

0.03

Percentage to the highest

Best Five bits depth in 4000 M to 4999 M

Total Meterage

Highest among the bidders Others Highest

100

0.05

Average

Percentage to the highest 100

0.05

Sl. No.

Parameters ROP

Allocation of Marks among the bidders Others Highest among the bidders Others Highest among the bidders Others

Weightage Factor

Marks

Best Five bits depth in above 5000 M

Total Meterage

Percentage to the highest 100

0.07

Average ROP

Percentage to the highest 100

0.07

Percentage to the highest 0.80

Total (B.4) (For 6 Bits)

C.1: C.2: C.3: C.4:

For Ranking of Bit Manufacturers of 17-1/2 Bits Net Marks for 17-1/2: Marks in (A) + Marks in (B.1) For Ranking of Bit Manufacturers of 12-1/4 Bits Net Marks for 12-1/4: Marks in (A) + Marks in (B.2) For Ranking of Bit Manufacturers of 8-1/2 Bits Net Marks for 8-1/2: Marks in (A) + Marks in (B.3) For Ranking of Bit Manufacturers of 6 Bits Net Marks for 6: Marks in (A) + Marks in (B.4)

Annexure A -2

Details and Documents to be submitted for evaluation of Bits


Parameters Queries Supporting Documents Required Annual report or any published document -doResponse from bidder Supporting Documents enclosed

Experience

How long the company is in the business of bit manufacturing? Revenue from the bit sales for last three years? Expenditure on R&D for last three years

Sales Volume

R&D

-do-

Following information is to be provided for 17-1/2, 12-1/4, 8-1/2 and 6 Bits separately. The information required is for the last three years.
Bits Sales Volume of Bits during last three years Any published authentic document Last three years Bit record for 2000M and above depth Purchase reference, annual reports or any other authentic documents. Purchase reference Purchase reference Bit Records Response from bidder Supporting Documents enclosed

Bits used in deep drilling

Multinational clients

Supplies in India

Performance of bits

No. of bits used for Deep Drilling Depth 2000M 3999M Depth 4000M 4999M Depth above 5000M No. of Premium bits supplied to following companies during last three years: Shell, Cheveron, BP, Agip, Totalfina, Statoil, Petrobras, Unocol, Exxcon Mobil, Kerr Mcgee No. of bits supplied to Indian Companies during last three years for offshore No. of bits supplied to Indian Companies during last three years for onshore Best five bit performances in last three years in depth range of 2000M-3999M 4000M-4999M Above 5000M

Bit Records Bit Records

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