1

ANNEXURE-IV
Bid evaluation criteria
Section A: VITAL CRITERIA FOR ACCEPTANCE OF BIDS
A.1 Vital criteria for acceptance of bids:
Bidders are advised not to take any exception/deviations to the bid document.
Exception/deviations IF ANY SHOULD BE BROUGHT out during Pre-Bid conference. In case
Pre-bid conference is not held, the exception/deviations along with suggested changes are
to be communicated to ONGC within the date specified in NIT & Bid document. ONGC after
processing such suggestions may through addendum to bid, communicate to the bidders
the changes in its bid document, if any. However during evaluation of the bid, purchaser
may at its own discretion ask the bidder for clarification / confirmation / deficient documents
of its bid. The request for clarification and response shall be in writing and no change in the
price or substance of the bid shall be sought or permitted
If bidder still maintains exceptions /deviations are maintained in the bid, such conditional/
non-conforming bids shall not be considered and may be rejected outright.

Section B: REJECTION CRITERIA

B.1: TECHNICAL REJECTION CRITERIA
The following vital technical conditions should be strictly complied with failing which the bid
will be rejected:
B.1.1 Bid should be complete in all aspects covering entire scope of supply and should
conform to the technical specifications indicated in the bid document, duly supported with
technical catalogues/ literatures, wherever applicable. Incomplete and non-conforming bids
will be rejected outright.
B.1.2 Manufacturers Experience:-
B.1.2.1 In case the bidder is a manufacturer of the offered equipment/item, he should satisfy
the following along with documentary evidence which should be enclosed along with the
techno-commercial bid:

B.1.2 (a) Minimum 5 Years of experience of manufacturing similar item/equipment with

tender specification same or higher capacity.

For this purpose the period reckoned shall be the period prior to the date of opening of the
techno-commercial bid.
B.1.2 (b) Bidder should have manufactured and supplied minimum one number of similar
item/equipment with tender specification same or higher capacity to various companies / Oil
& Gas specific companies during last 05 years from the date of techno commercial bid
opening.
Documentary evidence in respect of B.1.2.(a) & B.1.2.(b) should be submitted in the form of
copies of relevant Purchase Orders along with copies of any of the documents in respect of
satisfactory execution of each of those Purchase Orders, such as - (i) Satisfactory Inspection
report (OR) (ii) Satisfactory supply completion / Installation report (OR) (iii) Consignee
Receipted Delivery Challans (OR) (iv) Central Excise Gate Pass / Tax Invoices issued under
relevant rules of Central Excise / VAT (OR) (v) any other documentary evidence that can
substantiate the satisfactory execution of each of the purchase orders cited above.
B.1.2.1 In case the bidder is not a manufacturer, then the bidder is required to submit
documentary evidence from the concerned manufacturer and submit the same along with
the techno-commercial bid in respect of the clause B.1.2 (a) and B.1.2 (b) along with the
techno-commercial bid.
B.1.3 Bidders should have the required facilities for testing the quoted equipment/material
as per International standards at their premises and also agree to inspection by ONGC or
any other agency nominated by ONGC. In case the bidder is not the manufacturer, a
certificate from the manufacturer to the effect that the manufacturer possesses the required
facilities for testing the quoted equipment/ material should be enclosed along with the
techno-commercial bid.
B.1.4 Bidder must furnish the following undertaking from the Original Equipment
manufacturer(s), along with his bid:
 2

(i) The OEM shall provide the maintenance / service / calibration facilities in India, for all
the equipment to be supplied under the contract, if awarded to him by ONGC.
(ii) The bidder shall indicate the source of their bought out items and also the names
of the original equipment/materials manufacturer for the major components. The OEM shall
guarantee the lifetime supply (i.e. 7 years in case of electronic equipment/items and 10
years in case of mechanical equipment/items) of spares for all the equipment to be supplied
under the contract, if awarded to him by ONGC.
(iii)The OEM undertakes to enter into Annual Maintenance Contract for lifetime (i.e. 7 years
in case of electronic equipment/items and 10 years in case of mechanical equipment/items)
for all the equipment to be supplied under the contract, if awarded to him by ONGC.
In case the OEM declines/ fails to honor any of his commitments, business dealings with
such OEM shall be considered for banning from future business dealings.

B 1.5 Testing Facility and Third Party Inspection:

Bidders should have the required facilities for testing the quoted equipment / material as
per International standards at their premises. In case the bidder is not the manufacturer, a
certificate from the manufacturer to the effect that the manufacturer possesses the required
facilities for testing of the equipment / material, should be enclosed along with techno
commercial bid.

The bidder should agree for the Third party inspection at manufacturers premises by any
of the TPI agencies nominated by ONGC, indicated below, as per the Technical specifications
and Scope of Work (SOW) for TPI inspection provided in tender documents and QAP
approved by ONGC, at ONGCs cost, and submit inspection report along with shipping /
dispatch documents:
1. DNV-GLAS
2. BVIS
3. Lloyd
4. ABS
Bidder to confirm that after NOA they will convey to ONGC the production schedule at least
two weeks in advance so that ONGC can deploy the TPI agency to carry out inspection at
manufacturers premises.

Bidder should quote prices EXCLUSIVE of TPI Charges.

B.2 Commercial Rejection Criteria

The following vital commercial conditions should be strictly complied with failing
which the bid will be rejected.
B.2. Eligibility of Bidders:
1 Bidder should preferably be a Manufacturer. In case the bidder is not a
manufacturer, its bid can also be considered provided such bid is accompanied with
back-up authority letter from the concerned manufacturer, who authorizes them to
market their product provided further, such an authority letter is valid at the time
of bidding and should remain valid during the entire execution period of the order.
Required warranty cover of the manufacturer (as per the warranty clause no. 10 of
General terms and Conditions of bid document) for the product will be provided by
such a bidder and an undertaking to this effect shall be provided by the bidder in
the techno-commercial bid. Offers without back-up authority letter from
manufacturers will not be considered.
B.2. Acceptance of terms and conditions:
2 The bidder must submit an undertaking along with their techno commercial bid
that all instructions and conditions of tender document (including the instructions
to the bidders at Annexure I and General terms and Conditions at Annexure- II) as
well as the instructions contained in the web site www.etender.ongc.co.in and
special conditions of tender are acceptable to them unconditionally.
 3

B.2. Submission of Documents:

3 Bid along with all appendices and copies of documents (including scanned copies of
documents, which are required to be submitted in Original in physical form) should
be submitted in two-bid system in e-form through ONGCs e-bidding engine.
All the documents uploaded shall be digitally signed by the authorized signatory of
the bidder. Each file should be digitally signed and then uploaded. The files
should not be zipped in a folder and then digitally signed. The Techno-
Commercial bid shall contain all details without indicating prices of the quoted
items.
However, a suitable response shall be selected of the given options against each
item of the format at Appendix-9 (Bidders Response sheet) to indicate that there is
a quote against that item in the Price bid.
The Price bid shall contain only the prices duly filled in the on-line price format of
ONGCs e-procurement engine.
The price bids submitted in physical form against e-procurement tenders shall not
be given any cognizance.
The offers of the bidders indicating/ disclosing prices in techno-
commercial (un-priced bid) or at any stage before opening of price-bid
shall be straightaway rejected.
However, the following documents (in original) should necessarily be submitted in
physical form in sealed envelope (Scanned copies of these physical documents are
to be submitted/ uploaded in un-priced bid in e-form in e-portal) super scribed as
Physical documents against e-procurement Tender Number ...........
Opened/opening on ............... and To be opened by only Tender Opening Officers
at 1500 Hrs on .............. (as indicated in Invitation to Bid, the documents should
reach to the purchasers office before 1400 Hrs of the 7 th calendar day after
opening of bids submitted through the e-bidding portal. Hence, bidder should
indicate the date falling on 7th calendar day after opening of bids submitted
through the e-bidding portal):-
1. The original bid security.
2. The Power of Attorney or authorization, or any other document consisting
of adequate proof of the ability of the signatory to bind the bidder (which
should contain the signatures of the person authorizing as well as the
person to whom the authorization is given), in original, when the power of
attorney is a special Power of Attorney relating to the specific tender of
ONGC only.
A notarized true copy of the Power of Attorney shall also be accepted in
lieu of the original, if the power of attorney is a general Power of Attorney.
However, photocopy of such notarized true copy shall not be accepted.
3. Integrity Pact duly signed.
4. Back-up authority letter in Original from manufacturer on manufacturers
letter-head in case the bid is from sole selling agents/ distributors/ dealers/
supply house of manufacturer.

B.2. Offers of following kinds will also be rejected:

4 Offers made without Bid security (Earnest money deposit/Bank Guarantee) along
(a) with the offer (Refer clause 25 of Instructions to Bidders, Annexure-I of tender
document).
(b) Offers not submitted in e-form through ONGCs e-procurement engine.
(c) Offers made by Agents/ Consultants/Retainers/Representatives / Associates of
foreign principals.
 4

(d) Offers which do not confirm unconditional validity of the bid for 90 days from the
date of opening of techno-commercial un priced bid.
(e) Offers where prices are not firm and/ or with any qualifications.
(f.i) Offers which do not conform to ONGCs on line price format as given in the e-
bidding engine.
Foreign bidders must quote FOB, CFR and CIF prices.
FOB prices must include all the charges to put the material on board the vessel.
C&F/ CFR, CIF/CIAF prices must include all the charges to offload the
material at the port of discharge.
(f.ii) Offers which do not confirm filling of all relevant fields in the on-line bidding format
for the items quoted by them.
(g) Offers which do not conform to the delivery/ completion period including
installation & commissioning schedule indicated in the bid document.
(h) Indian agent is not permitted to represent more than one foreign bidder
(supplier/manufacturer/
Contractor) in a particular tender. In case an Indian agent represents more than
one foreign bidder (supplier / manufacturer/ contractor) in a particular tender, then
offers of such foreign bidders (supplier/ manufacturer/ contractor) shall be rejected
in that tender.
(i)(i) Non-submission of Integrity Pact along with the bid, duly signed by the same
signatory who signs the bid even after giving an opportunity after opening of
(ii) techno-commercial bids.
Offers of the bidders violating the provisions of Integrity pact.

(j) Offers and all attached documents not digitally signed using digital signatures
issued by an acceptable Certifying Authority (CA) as per Indian IT Act 2000 by the
person, as per power of attorney submitted as per BEC clause B.2.3
(k) Offers not accompanied with a declaration that neither the bidders themselves, nor
any of its allied concerns, partners or associates or directors or proprietors involved
in any capacity, are currently serving any banning orders issued by ONGC
debarring them from carrying on business dealings with ONGC.
(l) Offers not accompanied with an undertaking to provide all the necessary
certificates / documents for enabling ONGC to avail Input VAT credit and CENVAT
credit benefits (wherever applicable), in respect of the payments of VAT, Excise
Duty, Service Tax etc. which are payable against the contract (if awarded), along
with documentary evidence for payment of Excise Duty and Service Tax.
(m) Offers not accompanied with the undertaking on the companys letter head and
duly signed by the signatory of the bid that all the documents/
certificates/information submitted by them against the tender are genuine.
C. Evaluation methodology:
Price Evaluation Criteria
There is only one item in all for Ankleshwar asset. Bidders are required to quote for
full quantity as per specifications. If Bidders not quoting full quantity, there bid will
be rejected.
C1.1
Bidder to note that price bids of only technically & commercially acceptable offers
shall be considered for price bid opening.
The evaluation shall be done item wise. Ex-works price of domestic bidders
(with Customs duty on imported raw materials and components etc. and
applicable terminal Excise Duty on finished products and Sales Tax/VAT)
excluding inland transportation to owners site + installation and commissioning
 5

charges inclusive of all taxes as applicable and CIF landed price of foreign bidders
i.e. CIF value (i.e. FOB price quoted + quoted freight + 1% of FOB price as
insurance) + Customs Duty (on total of CIF value plus landing charges @ 1% of CIF
value) excluding inland transportation to owners site + installation and
commissioning charges inclusive of all taxes as applicable will be compared, when
there is at least one foreign bidder among the short listed bidders

NOTE:
a) Where bidders do not ask ONGC to bear excise duty extra on account of offer
being on Deemed Export basis, no loading on account of excise duty would be
done, however, where bidders ask ONGC to bear excise duty extra, loading of E.D.
would be done for evaluation accordingly.

b) Presently customs duty is Nil for import of items for areas under PEL/ ML and
NELP areas; however, applicable customs duty shall be used for evaluation of bids.

C1.2
If there is no acceptable foreign bidder, then the evaluation of domestic bidders
will be made on FOR destination basis(inclusive of installation and commissioning
charges) and supply order will be awarded to the domestic bidder who is the
lowest on FOR destination basis (inclusive of installation and commissioning
charges)
Note: To arrive at FOR destination rates, road freight and entry tax will be
considered for the purpose of evaluation
C1.3
However, if under C.1.1 above, a domestic Bidder emerges L-1, but whose rates are
higher on FOR destination basis(Inclusive of I&C Charges) as compared to any
other acceptable domestic Bidder, then such L-1 Bidder would have to match its
rates to the level of the lowest FOR destination rate(Inclusive of I&C Charges).
C.1.4 While evaluating the bids, the closing B.C selling market rates of exchange
declared by the State Bank of India on the day prior to the price bid opening will be
taken into account for conversion of foreign currency into Indian Rupees
C1.5
Where the time lag between opening of price bid and final decision exceeds three
months, the B.C. selling market rate of exchange declared by SBI on the day prior
to date of final decision will be adopted for conversion of foreign currency into
Indian Rupees
C1.6
If Customs Duty/ Excise Duty/ Sales Tax are being taken into account for the
purpose of evaluation of bids then the rate of Customs Duty/ Excise Duty/ Sales Tax
as prevailing on the date of bid closing/date of revised price bid closing as the case
may be will be taken into consideration for the propose of evaluation bids.
However, if there is any change in the rate of Customs Duty/ Excise Duty/ Sales Tax
after the date of bid closing/ date of revised price bid closing but prior to award of
the contract due to which there is any change in the original ranking of bidder,
then the bidder who has emerged lowest based on the rate of Customs Duty/
Excise Duty/ Sales Tax as prevailing on the date of bid closing/ bid submission/
opening of revised prices would be considered for award of contract but subject to
matching his prices with the bidder who has emerged lowest as a result of
modification in duties & taxes.
 6

In case originally evaluated L-1 bidder fails to match the price (with the bidder who
emerges L-1 due to change in Duties) then the award of contract will go to the
bidder who subsequently emerges L-1 due to change in Duties.
C1.7
Any other Govt. levies/ statutory levies which will not be borne by bidder must be
indicated clearly failing which it will be presumed that the same has been included
in the quoted price and ONGC will not be liable for payment of any such charges
and any ambiguous terms shall not be considered.

C.2 Purchase Preference to micro and Small enterprises: registered with

district industry centre or khadi and village industries commission or
khadi and village industry board or coir board or national small industries
corporation or directorate of handicrafts and handloom or any other body
specified by ministry of MSME:
a. In case participating MSEs quote price within price band of L1+15% such MSE
shall be allowed to supply a portion of requirement by bringing down their price
to L1 price in a situation where L1 price is someone than a MSE and such MSE
shall be allowed to supply 20% of total tendered value.
b. A sub-target of minimum 20% (i.e. 4% out of 20%) has been earmarked for
procurement from MSEs owned by the SC or ST entrepreneurs. provided that in
event of failure of such MSE to participate in tender process or meet tender
requirement and L1 price, 4% sub-target for procurement earmarked for MSEs
owned by SC or ST entrepreneurs shall be met from other MSEs.
In case of more than one bidder eligible for purchase preference, then the eligible
MSE (s) shall be allowed to share portion of supply in the following manner:
a) In case of more than one such MSE bidder qualifying for 15% purchase
preference, the 20% supply shall be shared equally among such MSEs.
b) In case 20% quantity cannot be further divided, ONGC shall place the order for
supply of 20% quantity to lowest eligible MSE among the MSEs qualifying for
15% purchase preference.
ii) In the opinion of ONGC, if required goods/services cannot be divided in the ratio of
80% / 20%, then ONGC reserve the right to award on lowest eligible MSEs for
quantity not less than 20%, as may be dividable.
For example
In case tendered quantity is between 1 to 4 (not divisible in ratio of 80:20), MSE
shall get the order for 1 No. only and rest will go to L-1 (non MSE bidder). Same
analogy shall be applied for quantities which are not dividable in the exact ratio of
80:20.
Note: Items are NON-splitable.

C.3 DEEMED EXPORT BENEFITS:

Supplies to ONGC shall be entitled for Deemed Export benefits as per para 7.02(f)
read with Para 7.03 of FTP 2015-20 for petroleum operation, provided the tendered
and offered items are covered in the list 34 of notification no. 12/2012- customs
dated 17.03.2012 (as amended from time to time).
Deemed Exports shall be eligible for the following benefits in respect of manufacture
and supply of goods qualifying as deemed exports:
a) Advance Authorization.
b) Deemed Exports drawback
c) Exemption from terminal excise duty where supplies are made against
 7

International Competitive Bidding. In other cases, refund of terminal excise duty

will be given.
The domestic suppliers will quote net price after taking into account the Deemed
Export Benefits as applicable. The domestic bidders are requested to check the
latest position on the subject on their own and in the event of any increase in the
Customs and Excise Duty due to change/abolition of the Deemed Export Benefits
(DEB), within contractual delivery, ONGC shall reimburse the same to the supplier
at actuals on submission of documentary proof of such payments having been
made. The bidder must specify in their bid the import content (quantity and value
wise), and the item number in the Customs Manual under which the raw material is
to be imported by them. However, in case of any increase in Customs/Excise duty
due to change/abolition of DEB beyond the original contractual delivery/completion
date, ONGC will not pay / reimburse such increase in Customs and Excise duty. In
the event of any decrease in the Customs Duty and Excise Duty by changing the
DEB by the Govt., the supplier shall pass on such decrease to ONGC immediately.
The reimbursement (from either party) shall only be limited to the payment of
Customs Duty/Excise Duty, and not for any other benefit under Deemed Exports to
the contractor/supplier.
Note:
Note: (i) Applicable documents for availing of Deemed Export Benefits will be
provided by ONGC.
(ii) Certificate specifying that the items are procured for use in PEL/ML areas/NELP
areas by Directorate General of Hydrocarbons for facilitating exemption of excise
duty (by Indian bidders) will be provided by ONGC.
C.4 Import Content: Indian bidders must indicate in their bid, the following details of
the import content (i) list of materials to be imported, (ii) the quantity, (iii) their CIF
value, (iv) relevant Customs tariff and (v) currency(ies) involved thereof, in the
supply which shall be indicated in the supply order/ contract.
Note: All the above information except CIF value should be indicated in techno-
commercial bid. The CIF value of total import content against each item should be
quoted in corresponding field in price bid as percentage of Ex-works price of that
item.

C.5 LC Confirmation Charges: LC confirmation charges will not be considered. If the

foreign bidder so insist, the confirmation charges will be to their account.
C.6 Octroi / Entry Tax:
ONGC will provide Octroi Exemption Certificate in lieu of Octroi charges if any. In
case road permit is required, the same will be provided by the concerned consignee
Asset/Basin.

D. General Criteria:
D.1 Discount: Bidders are advised not to indicate any separate discount. Discount, if
any should be merged with the quoted prices. Discount of any type indicated
separately will not be taken into account for evaluation purpose. However in the
event such offer without considering discount is found to be lowest, Corporation
shall avail of such discount at the time of award of contract.
D.2 The bidder/ contractor is prohibited from offering any service/ benefit of any
manner to any employee of ONGC and that the contractor may suffer summary
termination of contract/ disqualification in case of violation.
D.3 On-site inspection will be carried out by ONGCs officers/ representative/ Third
Parties at the discretion of ONGC.
 8

D.4 Bidder to note that this BEC over-rides all other similar clauses operating anywhere
in the Bid Documents.