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THE CLARIFICATIONS TO QUERIES ON AMMUNITION RFPs

The IInd pre bid meeting for Amn RFP was held on 26 Feb 2018. MGO Branch have hosted the clarification on queries by Industry, on e -PROC PORTAL.

The date of RFP bid submission is 12 Apr 2018 and bid opening is 13 Apr 2018. The gist of clarifications or additional inputs on queries common to all RFPs is reproduced below:-

Maximum Number of Contracts to be Offered

A vendor may bid for any number of RFPs but will be allowed to sign only a maximum of three contracts. The preference of these three contracts is to be indicated in the technical bid itself. A group of companies shall only be allowed a maximum of three contracts out of the total eight.

The participation of consortium

Only Indian companies are allowed to bid. The applicant company may enter into a consortium without any liability of the Govt but the entire liability of fulfilling the bid and contractual liabilities will rest with the applicant Indian company and MoD will deal with only this single entity. A consortium comprising only of Indian companies is allowed to bid. Such consortium of Indian companies bidding for any RFP shall indicate the lead company in the technical bid itself. All criteria of financial eligibility and bid/ contract liabilities shall rest with this lead company.

Time for Submission of Trial Samples

120 days have been provided for submission of trial samples on the request of the vendors itself conveyed in the first Pre Bid Meeting held on 08 May 17. The Army HQ shall endeavor to provide EUC along with the intimation by Army HQ for submission of trial samples.

Wilful Bank Default by Directors/ Board Members

A certificate from the statutory auditors that the company has not availed/ applied for the Corporate Debt restructuring scheme (CDR)/ Strategic Debt restructuring scheme (SDR) of RBI in the last three years shall suffice. In addition a certificate from the Statutory Auditors (based in turn on a self-certificate rendered by the Directors/Promoters) that no Director/ Promoter of the company is involved in willful default on banks and that there is no legally proven fraudulent/ illegal transaction/ action against their name is required to be submitted along with the technical bid.

Definition of Capital Assets

Capital Assets as per the understanding in vogue in the industry shall be used as a financial evaluation criteria and no change to the RFP is considered necessary on this account.

Proof of Credit Ratings

A certificate from the SEBI accredited Credit Rating Agency is required to be submitted.

Financial Credentials of Group of Companies

Bidding by a company that is a wholly owned subsidiary of a Holding Company has been allowed. In that case the Wholly Owned Subsidiary may submit financial credentials of the Holding Company only one level up. The financial credentials of a group of companies cannot be used by a wholly owned subsidiary to claim financial eligibility.

Trial of Past Suppliers

No one is exempted from Trials.

Submission of Trial Samples

The applicant company in case a single entity is applying for the bids is required to submit the NCNC samples. In case of a consortium  who is submitting the bid shall be responsible for submission of NCNC trial samples for trial evaluation the Lead Company nominated by the consortium.

Provision of Service Weapon

A request for provision of  service weapon from which the ammunition is intended to be fired, may be considered on receipt of specific proposal from bidders found successful in Technical Evaluation.

Critical Technologies

Only the critical technologies that are listed in the RFP for each ammunition are required to be indigenized in the stipulated time frame as given in Para 4 (g) of Cover Note of RFP .

Indigenization of Propellant Manufacture

No change to RFP.

Percentage of Indian Content

The critical technologies for each ammunition mentioned in the RFP are to be indigenized 100% in the time frame stipulated for indigenization in the RFP. Within the same time the Indian Content of 50% on overall cost has to be achieved. The same shall be verified by a Board of Officers comprising all stakeholders at the end of the period laid down to achieve indigenisation. The time frame for indigenization for APFSDS is three years while for all others it is two years

Cost of Dynamic Proof for Validation of Indigenization

The cost of Dynamic Proof for the purpose of verification of indigenization by Board of Officers shall be borne by the vendor.

 

of Ammunition with Improved Specifications

The issue has already been clarified in the Clarification letter issued along with the final corrigendum. An improved product with slightly different dimensions or other specifications but still meeting all the performance and operational parameters can be offered for trials. The bidder shall be required to certify that the ammunition offered for trials is compatible and safe to be fired from the In Service equipment and confirms to the Range and ballistic performance as per the In Service Range table. This certificate shall be rendered with the technical bid itself. Cost of any damages incurred as a result of these trials will be borne by the vendor.

Explosive Manufacturing License

No Change in RFP.

Timeframe for Indigenization

No change to the period stipulated in RFP.

Export of Components

Permission to export may be sought as per existing provisions on the subject as given in Para 4(j) of Cover Note of RFP. Export is permitted after meeting Army`s requirement, completion of indigenization and permission of MoD.

Validation of indigenization

Indigenization achieved shall be an all-encompassing process audit, including dynamic firing checks, of the manufacture of the ammunition which shall be undertaken by a composite board of Officers (BOO) including representatives from all stakeholders. This validation shall be undertaken once at the end of the period stipulated for achievement of indigenization. In case a particular raw material is not available in India then it may continue to be imported and the same shall not be held against the achievement of indigenization. The time taken for the BOO to ascertain the level of indigenization achieved shall not be included in the delivery schedule. It shall be the endeavor of Army HQ to complete this as early as possible.

Export of the ammunition

It is permitted after indigenization is completed, the Army`s requirement is met and permission for the same explicitly given by MoD subject to all other provision governing such export. End User Certificate shall be required to be furnished by the importer from the intended recipient Govt. Confidentiality causes have been included in the RFP and shall be included in the contract subsequently. IPR of the Seller shall be protected. The manufacturing drawings and specifications of the ammunition manufactured by the Indian companies shall not be shared with another manufacturers. These drawings and specifications are required for DGQA to fulfil their duties as the AHSP of the ammunition and shall not be used for any other purpose.

Integrity Pact and Bank Guarantee

IPBG is required as per provisions of DPM 2009 as the overall cost of the proposal is more than 100 Cr. IPBG in original is required to be submitted along with the bid in physical form with a scanned copy along with the online technical bid. The validity of the IPBG is required to be five years from the date of submission or completion of complete contractual obligations whichever is later. The format of IPBG may be as per DPM Form 13.The IPBG may be made from any authorized bank as per DPM 2009. Beneficiary details shall be as per procedure in vogue in Capital Procurement.

Cost of DGQA Facilities 

As per the existing procedure of DGQA on the subject.

Advance Payment

The advance of 15% shall be paid against the annual order value. The same shall be paid on a pro-rate basis as per the existing procedure.

Exchange Rate Variation

ERV shall not be provided for to any company under this scheme.

GST

As per existing provisions.

Reimbursement of BCD Escalation.

Procedure for reimbursement of BCD escalation shall be as per DPM 2009.

RFP Reference Number

In some RFP the reference number has been changed from MAPI to MII. Which reference number is required to be quoted? The original reference number is valid.

Signing Authority

The accountability of adherence to the bid and contractual conditions shall ultimately rest with the company on whose behalf the bids are submitted and contract signed.

Ratio of Apportionment

A vendor cannot be offered more than 3 contracts out of the total 8 as per his preference of three contracts which are to be indicated in the technical bid itself. In case a vendor is L1 in more than 3 contracts, the contracts not being offered to the L1 vendor because of this stipulation shall be offered to L2 vendor provided he agrees to supply at L1 price and meeting all other criteria. In case L2 declines, the final decision on an offer to L3, or apportionment of quantity between L2 & L3 or retendering shall be taken by CNC constituted for the purpose.

Banned Companies

The details of banned companies are available on the MoD website. (Also available in the current issue of this magazine).

Participation by DPSUs/PSUs

The competent authority has approved participation of the DPSUs/PSUs in this project. No change to the same is considered necessary.

Price Quote of Variants

The price of each variant of ammunition for each of the ten years is required to be included in the commercial bid.

Submission of Commercial Bid

The commercial bid may be submitted as a PDF document as the Commercial Bid Format for this RFP is different from a standard commercial bid.

Track record of Partners

Tie ups with companies that are currently banned for dealing with Govt of India are not allowed to participate in any form in this project.

For product specific and details queries please refer to e -PROC PORTAL-WWW.ePROCURE.GOV.INat https://eprocure.gov.

in/eprocure/app?component=%24DirectLink&page=FrontEndLatestActiveTenders&service=direct&session=T&sp=Sr%2Fl7DkN0aSSEzbwB%2FV9SfQ%3D%3D

Article published in Magazine issue “Mar-Apr 2018 “

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