KAKINADA

GSPC/KKD/2014/1/128

Date: 29.01.2014

PROPOSAL FOR AWARD

Sub:

APPROVAL FOR PROCUREMENT OF SPARES FOR FLARE SYSTEM AT OGT

FROM OEM (i.e. M/s AIROIL FLAREGAS PRIVATE LIMTED, AHMEDABAD).

Ref:

1.
2.
3.
4.
5.

1.

Approval for procurement of spares vide approved note dated on 30.08.2013

Indent received from OGT vide note dated 22.10.2013
Formulation of committee vide approval dated 07.11.2013
RFQ -24 floated on 20.11.2013.
Offer No.Q00428 dated 18.12.2013 and subsequent correspondence till date.

Purpose:M/s Airoil Flaregas Private. Limited make spark generation system is installed for
igniting flare gases at OGT. For day to day maintenance of this system, we need spares.
Reviewed the list of spares provided by OEM and proposed to purchase these spares.

2.

Scope of supply:Supply of various spares for Flare System at OGT. (List of Spares placed at annexure-I
and is enclosed).

3.

Process followed:Purchase indent vide approved indent note dated 22.10.2013 has been forwarded to
commercial team, KKD by Maintenance team (OGT) for procurement of spares for Flare
System from Original Equipment Manufacturers (O.E.M) (i.e. M/s Airoil Flaregas Private
Limited.,) as main equipment was installed by said OEM at OGT.
Further, Tender committee (TC) was formulated by considering following Commercial,
Technical & Finance member, which was duly approved by EVP KG Asset in order to
carry out the all procurement activities including price negotiation & finalization of prices:
1.
2.
3.
4.

Shri.R.B.Singh, VP (Maintenance)
Mr.B Vishnu, Manager (Commercial)
Mr.S.Balasubrahmanyam, Manager (F&A)
Mr.Shivam Dubey, Senior Officer (Commercial)

Accordingly, RFQ has been issued, obtained quotation and same has been evaluated
techno-commercially. It has been observed by TC that the rates quoted by M/s Airoil
Flaregas Private Limited are not reasonable and thereby, negotiation has been
scheduled on 28.01.2014 at STC office of GSPC whereas vendor has declined to
participate the negotiation at STC office due to location constrained.
In view of above, telephonic negotiations were carried out by TC on 28.01.2014
respectively. During negotiation, vendor has been requested to review their quoted
prices by TC keeping in view of that the quoted prices ware not reasonable and also
requested to accept the payment terms.
Finally, M/s Airoil Flaregas Private Limited has confirmed that the quoted rates are
reasonable ,inability to extent any discount on quoted prices and also confirmed

GSPC/KKD/2014/1/128

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compliance to terms & conditions of GSPC vide their e-mail dated 28 .01.2014,
keeping in view of long term business relationship with GSPC.
Prices have been tabulated and are enclosed herewith (placed at annexure-I) in which it
is indicated that the scenario before & after negotiations. Salient feature of commercial
terms are as under:-

4.

Delivery Terms

Delivery shall be 8 weeks from the date of LOA/PO.

Payment Terms

100 % payment shall be within 30 days from the date of

Undisputed Invoice. .

Validity of Bid

Offer valid up to 28.02.2014.

Budget Availability:The amount is covered under Development budget RE 2013-14 under the head
Facilities Creation Cost- line item Pre-commissioning expenses and covered under
Production Budget BE 2014-15 under the head Repairs & Maintenance sr. no.6.

5.

Recommendations:The offer of M/s Airoil Flaregas Private Limited is proposed for placement of LOA/PO at
total landed price of Rs. 19,754/- (F.O.T, GSPC, OGT site) and transit insurance shall be
arranged by GSPC.

6.

Post bid PSC Procedure followed for OEM cases:

OC approval for award

to be obtained

MC intimation

to be intimated

Submitted for approval please.

SO (Com)
Manager (Com)

Manager (F&A)

Vice President (Maintenance)

EVP (KG Asset)
COO

GSPC/KKD/2014/1/128

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