CONTRACT NO. SU/QT/557N/14

Transcription

1 KENYA PIPELINE COMPANY LIMITED TENDER FOR THE ENGINEERING DESIGN, PROCUREMENT AND CONSTRUCTION (EPC), TESTING AND COMMISSIONING OF A 10 (TEN INCH) 122 KM OIL PIPELINE FROM SINENDET PS (26) TO KISUMU (PS 28), TOGETHER WITH TIE IN FACILITIES AT PS28 FOR THE FUTURE KISUMU- BUSIA PIPELINE CONTRACT NO. SU/QT/557N/14 EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 1 of 92

2 SECTION I - INVITATION TO TENDER Tender No. Tender Name: SU/QT/557N/14 The Engineering Design, Procurement and Construction (EPC), testing and commissioning of a 10 (TEN INCH) 122 KM oil pipeline from Sinendet PS (26) to Kisumu (PS 28) together with tie in facilities at PS28 for the future Kisumu- Busia Pipeline. 1.1 Kenya Pipeline Company Limited invites tenders from eligible bidders for The Engineering Design, Procurement and Construction (EPC), testing and commissioning of a 122 KM 10 (TEN INCH) oil pipeline from Sinendet PS (26) to (Kisumu) PS 28, together with tie in facilities at PS28 for the future Kisumu - Busia Pipeline. 1.2 Interested bidders tenderers may obtain further information and inspect the tender documents at the address given below: Procurement Manager Kenya Pipeline Company Limited P.O. Box Nairobi, Kenya 1.3 Interested eligible applicants may obtain the Tender Documents from the office of the Procurement Manager, Kenya Pipeline Company Ltd, Nairobi Terminal situated in Industrial Area, between 0800 hours and 1700 hours during weekdays, on payment of a non-refundable fee of Ksh.1, (Kenya Shillings) payable in cash or in form of a Bankers Cheque drawn in favour of Kenya Pipeline Company Limited. The tender documents can also be viewed and downloaded from the website at no cost. Bidders who download the tender document from the website will be required to their detailed contact information to opentender@kpc.co.ke for recording, further clarifications and addenda. 1.4 Mandatory requirements are as given below, these shall be placed in a separate and sealed envelope marked mandatory requirements:- a) Certificate of Incorporation of the company/business registration for both foreign and local partner b) Valid KRA Tax Compliance Certificate (for local/kenyan firms) EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 2 of 92

3 c) Original Tender Security of USD. 350, issued by a bank operating in Kenya or an Insurance Company approved by The Public Procurement Oversight Authority, Kenya (PPOA) d) National Construction Authority (NCA) Certificate for those firms proposed to carry out engineering works. e) Certificate of Tenderer s Site Visit f) All foreign tenderers participating in this tender shall source at least 40% of their supplies from Citizen contractors. An agreement between the tenderer and the local company must be submitted. The agreement may be in the form of Joint Venture (JV) or a subcontract agreement 1.5 Prices quoted should be inclusive of all taxes and in United States Dollars (USD) or/and Kenya Shillings and shall remain valid for 120 days from the closing date of tender. 1.6 Completed tender documents are to be enclosed in plain sealed envelopes marked with the Tender name and reference number and deposited in the Tender Box at the ground floor at Kenpipe Plaza or addressed to: The Managing Director, Kenya Pipeline Company Limited, Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box , Nairobi, Kenya. So as to be received on or before 8 th October 2014 at 10.00am. 1.7 Tenders will be opened immediately thereafter in the presence of the tenderers or their representatives who choose to attend at Kenpipe Plaza, Sekondi Rd, off Nanyuki Rd, Industrial Area. All tenders received after the closing date set out in paragraph 1.6 hereinabove shall not be considered and shall be returned to the bidders. 1.8 In the event that there arises any conflict or contradiction between the public advertisement of the tender and the tender document, the tender document shall at all times prevail. 1.9 Tender documents are not transferable. Procurement Manager, FOR: MANAGING DIRECTOR EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 3 of 92

4 SECTION II - BACKGROUND AND PRELIMINARY INFORMATION BACKGROUND Kenya Pipeline Company (KPC) Limited was incorporated on 6th September 1973 under the Companies Act and started commercial operations in The Company is 100 percent owned by the Government of Kenya. The Company operates and maintains a cross-country pipelines system of various sizes with the associated storage and distribution facilities. The pipeline system currently consists of 450 km of Line 1 (14 inch) running from the port of Mombasa to Nairobi, 325 km of Line 2 (8 inch) from Nairobi to Eldoret, 324 km of Line 4 (14 inch) from Nairobi to Eldoret and 121 km of Line 3 (6 inch) from Sinendet to Kisumu (off Line II) making a total of 1,220 km. KPC also owns and operates several pumping stations and depots between the above mentioned stations. The depots are located at Kipevu (PS 14), Moi International Airport (PS12), Embakasi (PS9), Nairobi Terminal (PS10), Nakuru (PS25), Eldoret (PS27) and Kisumu (PS28). In addition, the company operates common-user road and rail tanker loading facilities at Nakuru, Eldoret and Kisumu. KPC is currently employing about 1600 personnel who are spread over the company s installations. PRELIMINARY INFORMATION To match the rising demand for refined petroleum products locally and regionally, KPC has been upgrading its systems to achieve this objective. Kisumu Depot PS 28 continues to receive product from the existing 6 line which has been noted to have significant capacity constraints resulting to frequent product stock outs. The proposed pipeline will address the capacity constraints, and optimise the use the existing facilities. OBJECTIVES The objectives of the proposed project are: i) To construct an approximately 122 km 10 (TEN INCH) long oil pipeline from PS 26 to PS 28 to meet projected demand up to year 2044 as determined by KPC. ii) To optimise operational flexibility availed by Line 4 iii) Allow for future connection to a future pipeline from Kisumu to Busia PROJECT SCOPE The project scope shall include and not limited to the following:- i) Designing, Procuring and Construction of a 10 (TEN INCH) Pipeline from PS26 (Sinendet) to PS 28 (Kisumu) along the existing pipeline route. This pipeline will transport white oil products namely Automotive Gas Oil (AGO), Motor Spirit Gasoline (MSP), Dual Purpose Kerosene (DPK). The EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 4 of 92

5 DPK will be split into Illuminating Kerosene (IK) and JET A1 at the receiving stations but usually transported as one batch. The pipeline will be constructed along an existing ROW, therefore no land will be acquired. ii) In addition to i) above, the EPC contractor is expected to take into account surge relief facilities, tank vent valves at PS28, injection facilities, dump tank, etc in the design. iii) Prepare Operation Philosophy for the project iv) Carrying out Tie-ins at PS26 and PS28 to existing facilities including modifications in the tank farm for PS28 to suit. v) Allow a provision to extend the pipeline to Busia at Kisumu (PS28) including the necessary valve chamber and fittings vi) Carrying out Environmental and Social Impact Assessment and obtain NEMA approvals vii) Seeking of all necessary statutory approvals viii) Attendance of defects during maintenance period ix) Supply, installation and commissioning of a SingleMode 96 strand fibre optic cable along the entire pipeline length, from Sinendet (PS26) to Kisumu (PS28 x) Training of Client s staff xi) Provide documentations such as Manuals, As-Built, etc, upon completion of the project. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 5 of 92

6 SECTION III - INSTRUCTIONS TO TENDERERS GENERAL 3.1 Definitions (a) Tenderer means any person or persons, partnership, Joint venture, consortium or company submitting a tender for the project acting directly or through a legally appointed representative (b) Accepted tenderer means the tenderer who is approved by KPC (c) Procuring entity means Kenya Pipeline Company (KPC) Limited 3.2 Eligibility and qualification of tenderers To be eligible and qualified the tenderer shall provide evidence satisfactory to KPC of its eligibility, capability and adequacy of resources to effectively perform the subject contract. To this end, the tenderer shall be required to submit a technical proposal which will include the following information. i. Details of experience and past performance of works of similar nature as per clause herein. ii. iii. iv. The qualifications and experience of key personnel proposed for administration and execution of the contract both on and off site. Major items of construction plant and equipment proposed for use in the performance of the contract. Details of subcontractors to whom it is proposed to sub-contract any portion of the contract and for whom authority will be required for such subcontracting in accordance with the conditions of contract. v. A draft programme of works in the form of a Gantt chart which shall form part of the contract if the tender is accepted. Any change in the programme or schedule shall be subject to the approval of KPC. vi. vii. Details of any current litigation or arbitration proceedings in which the tenderer is involved as one of the parties. Financial capability as detailed in the Technical Evaluation criteria Local Participation Foreign firms must submit their bids in association with local firms. The participation for the local firms shall be at least 40% of the contract value. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 6 of 92

7 Details to be submitted for the local firm are indicated in the Appendix to instruction to Tenderers Joint venture Tenders submitted by a joint venture of two or more firms as partners shall comply with the following requirements: (a) (b) (c) (d) (e) (f) The tender and in case of a successful tender, contract form shall be signed so as to be legally binding on all partners. Each of the partners must satisfy the mandatory requirement set out in clause 1.4 hereinabove One of the partners shall be nominated as being lead contractor, and this authorization shall be evidenced by submitting a power of attorney signed by legally authorized signatories of all the partners. The lead contractor shall be authorized to incur liability and receive instructions for and on behalf of any and all the partners of the joint venture and the entire execution of the contract including payment shall be done exclusively with the lead contractor. All partners of the joint venture shall be liable jointly and severally for the execution of the contract in accordance with the contract terms, and a relevant statement to this effect shall be included in the authorization mentioned in (b) above as well as in the form of tender and the contract form (in case of the accepted tender). A copy of the contract entered into by the joint venture partners shall be submitted with the tender Kenya Pipeline Company employees, committee members, board members and their relatives (spouse and children) are not eligible to participate in the tender A tenderer who gives false information in the tender document about its qualification or who refuses to enter into a contract after notification of contract award shall be disqualified and /or recommended for debarment from participating in future public procurement. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 7 of 92

8 3.3 Cost of tendering The tenderer shall bear all costs associated with the preparation and submission of its tender and KPC will in no case be liable for those costs, regardless of the conduct or outcome of the tendering process The price to be charged for this tender document shall be KES. 1, for hardcopy and free for downloaded copies KPC shall allow the tenderer to view the tender document free of charge before purchase. 3.4 Site visit The tenderers are advised to visit and examine the site and its surrounding and obtain for themselves on their own cost and responsibility all information that may be necessary for preparing the tender and entering into a contract. KPC shall organize a site visit at a date to be notified. A representative of KPC will be available to meet the visiting tenderers. Tenderers must provide their own transport The tenderers and any of their personnel or agent will be granted permission by KPC to enter upon premises and lands for the purpose of such inspection, but only upon the express condition that the tenderer, its personnel or agents, will release and indemnify KPC from and against all liability in respect of and will be responsible for personal injury (whether fatal or otherwise), loss of or damage to property and any other loss, damage, costs and expenses however caused, which but for the exercise of such permission, would not have arisen The representative will not be available at any other time for site inspection visits other than the stated date and announced to the bidders Non-attendance of the site visit will cause disqualification of a bidder. The bidders who choose to attend the site visit will be issued with a site visit certificate. 3.5 Contents of tender document This document constitutes the complete tender for this project The tenderer is expected to examine carefully all instructions, conditions, forms, terms specifications and drawings in the tender documents. Failure to comply with the requirements for tender submission will be at the EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 8 of 92

9 tenderer s risk. Pursuant to clause 3.23 of Instructions to tenderers, tenders which are not substantially responsive to the requirements of the tender documents will be rejected All recipients of documents for the proposed contract for the purpose of submitting a tender (whether they submit a tender or not) shall treat the details of the documents as private and confidential. 3.6 Inquiries by tenderers A tenderer making an inquiry relating to the tender documents may notify KPC in writing by fax or at KPC s mailing address indicated in the invitation to tender. KPC will respond in writing to any request for clarification which is received earlier than 7 days prior to the deadline for the submission of tenders. Written copies of KPC s response (including the inquiry but without identifying the source of the entity) will be sent to all respective tenderers who have purchased the tender documents. If a candidate sends an inquiry after the stated days, KPC shall have the option of responding to the inquiry and extension of the date of submission of tenders or ignoring it The tender evaluation committee shall evaluate the tender within 15 days from the date of opening the tender KPC shall reply to any clarifications sought by the tenderer within 3 working days of receiving the request to enable the tenderer to make timely submission of its tender, provided that Clause hereinabove shall apply 3.7 Amendment of tender documents At any time prior to the deadline for submission of tenders KPC may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective tenderer, modify the tender documents by issuing Addenda Any Addendum will be notified in writing or by cable, telex or facsimile to all prospective tenderers who have purchased the tender documents and will be binding upon them In order to allow prospective tenderers reasonable time in which to take the Addendum into account in preparing their tenders, the employer may, at its discretion, extend the deadline for the submission of tenders. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 9 of 92

10 PREPARATION OF TENDERS 3.8 Language of tender The tender and all correspondence and documents relating to the tender exchanged between the tenderer and KPC shall be written in the English language. Supporting documents which are printed literature furnished by the tenderer with the tender may be in another language provided they are accompanied by an appropriate translation of pertinent passages in the above stated language. For the purpose of interpretation of the tender, the English language shall prevail Documents comprising the tender The Forms, Bills of Quantities and Schedules submitted with the tender documents shall be used without exception (subject to extensions of the schedules in the same format and to the provisions of clause regarding the alternative forms of tender security) Tender prices All the insertions made by the tenderers shall be made in indelible INK and the tenderer shall clearly form the figures. The relevant space in the Form of Tender shall be completed accordingly without interlineations or erasures except those necessary to correct errors made by the tenderer in which case the erasures and interlineations shall be initialled by the person or persons signing the tender This is a fixed rate Lump Sum Contract. A price or rate shall be inserted by the tenderer for every item in the Bills of Quantities whether the quantities are stated or not, items against which no rate or price is entered by the tenderer will not be paid for by KPC when executed and shall be deemed covered by the rates for other items and prices in the Bills of Quantities. The prices and unit rates in the Bills of Quantities are to be the full [allinclusive] value of the work described under the items, including all costs and expenses which may be necessary and all general risks, liabilities and obligations set forth or implied in the documents on which the tender is based. All duties and taxes and other levies payable by the tenderer under the Contract or for any other cause prior to the deadline for the EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 10 of 92

11 submission of tenders, shall be included in the rates and prices and the total tender prices submitted by the Tenderer. Each price or unit rate inserted in the Bills of Quantities should be a realistic estimate for completing the activity or activities described under that particular item and the tenderer is advised against inserting a price or rate against any item contrary to this instructions. Every rate entered in the Bills of Quantities, whether or not such rate be associated with quantity, shall form part of the Contract. KPC shall have the right to call for any item of work contained in the Bills of Quantities, and such items of work to be paid for at the rate entered by the tenderer and it is the intention of KPC to take full advantage of unbalanced low rates Currencies of tender and payment Tenders shall be priced either in US Dollars, Kenya Shillings or both Kenya Shillings and US Dollars Tenderers are required to indicate in the Statement of Foreign Currency Requirements, which forms part of the tender, the foreign currency required by them. Exchange rates The rate of exchange used for pricing the tender shall be the Central Bank of Kenya (CBK) mean rate ruling on the date thirty (30) days before the final date of submission of tenders Tenderers must enclose with their tenders, a brief justification of the foreign currency requirements stated in their tenders Tender Validity The tender shall remain valid and open for acceptance for a period of one hundred and twenty (120) days from the specified date of tender opening or from the extended date of tender opening (in accordance with clause 7.4 here above) whichever is the latter In exceptional circumstances prior to expiry of the original tender validity period, KPC may request the tenderer for a specified extension of the period of validity. The request and the responses thereto shall be made in writing or by cable, telex or facsimile. A tenderer may refuse the request without forfeiting his Tender Surety. A tenderer agreeing to the request will not be required nor permitted to modify his tender, but EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 11 of 92

12 will be required to extend the validity of his Tender Surety correspondingly 3.13 Tender Security- must be valid for 150 days from the closing date The tenderer shall furnish as part of his tender, a Tender Security in the amount of USD 350, in the form of Bank Guarantee or Bid bond issued by a Bank or Insurance Company approved by PPOA The Tender Security shall be valid for at least thirty (30) days beyond the tender validity period Any tender not accompanied by an acceptable Tender Security will be rejected by KPC as non-responsive The Tender Securities of unsuccessful tenderers will be returned as promptly as possible, but not later than twenty eight (28) days after concluding the Contract execution and after a Performance Security has been furnished by the successful tenderer. The tender security of the successful tenderer will be returned upon the tenderer executing the Contract and furnishing the required Performance Security The Tender Security may be forfeited: (a) (b) (c) if a tenderer withdraws his tender during the period of tender validity; or in the case of a successful tenderer, if he fails (i) to sign the Agreement, or (ii) to furnish the necessary Performance Security if a tenderer does not accept the correction of his tender price pursuant to clause No alternative offers The tenderer shall submit an offer which complies fully with the requirements of the tender documents unless otherwise provided for in the appendix. Only one tender may be submitted by each tenderer either by himself, his subsidiary, or as partner in a joint venture The tenderer shall not attach any conditions of his own to his tender. The tender price must be based on the tender documents. The tenderer is not required to present alternative construction options and he shall use without exception the Bills of Quantities as provided, with the EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 12 of 92

13 amendments as notified in tender notices, if any, for the calculation of his tender price. Any tenderer who fails to comply with this clause will be disqualified Pre-tender meeting If a pre-tender meeting is convened the tenderers designated representative shall be invited to attend at the venue and time stated in the Invitation to Tender. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at that state The tenderer is requested as far as possible to submit any questions in writing or by cable, to reach KPC not later than seven days before the meeting. It may not be practicable at the meeting to answer questions received late, but questions and responses will be responded in an Addendum issued to all bidders.. Any modification of the tender documents listed in Clause 3.9 which may become necessary as a result of the pre-tender meeting shall be made by KPC exclusively through the issue of an Addendum pursuant to Clause 3.7 and not through the the pretender meeting. (a) (b) (c) Non-attendance at the pre-tender meeting will not be cause for disqualification of a bidder. The pre-bid meeting shall take place at PS28 (Kisumu) after the site visit Format and signing of tender The tenderer shall prepare his tender as outlined in this tender document and mark appropriately one set ORIGINAL and the other COPY The copy of the tender and Bills of Quantities shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to sign on behalf of the tenderer. All pages of the tender where amendments have been made shall be initialled by the person or persons signing the tender The complete tender shall be without alterations, interlineations or erasures, except as necessary to correct errors made by the tender, in EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 13 of 92

14 which case such corrections shall be initialled by the person or persons signing the tender. SUBMSSION OF TENDERS Sealing and marking of tenders- this is a 3 envelope tender The tenderer shall seal the Mandatory documents, Technical Proposal and Financial Proposal of the tender in separate envelopes duly marked mandatory, technical proposal and financial proposal. The envelopes shall then be sealed in an outer envelope. a) The mandatory documents shall be as listed in the instruction to tender. b) The Technical Proposal shall constitute the following documents i) Tender Submission letter ii) Tender Questionnaire iii) Methodology for carrying out the assignment iv) Financial capability (Audited Account) v) Schedule of Plant and Equipment vi) Details of contracts of similar nature vii) Schedule of on-going projects viii) Key personnel with assigned tasks ix) Detailed signed CV s of proposed technical staff x) Litigation history xi) Power of Attorney xii) Details of sub-contractors xiii) Declaration forms duly filled xiv) Programme of works xv) List of documents and reports to be submitted to the Client. These shall be proposed by the EPC contractor and shall contain deliverables expected from the EPC contractor to the Employer. c) The Financial Proposal shall constitute i) Form of Tender ii) Priced Bills of Quantities/Schedule of rates Any indication of prices in the technical bid shall amount to disqualification of the bidder. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 14 of 92

15 The inner and outer envelopes shall be addressed to KPC at the address stated in the Appendix to Instructions to Tenderers and bear the name and identification of the Contract stated in the said Appendix with a warning not to open before the date and time for opening of tenders stated in the said Appendix The inner envelopes shall each indicate the name and address of the tenderer to enable the tender to be returned unopened in case it is declared late, while the outer envelope shall bear no mark indicating the identity of the tenderer If the outer envelope is not sealed and marked as instructed above, KPC will assume no responsibility for the misplacement or premature opening of the tender. A tender opened prematurely for this cause will be rejected by KPC and return to the tenderer Deadline for submission of tenders Tenders must be received by KPC at the address and on the date and time specified in the invitation to tender. Tenders delivered by hand must be placed in the tender box provided in the office of KPC. Proof of posting will not be accepted as proof of delivery and any tender delivered after the above stipulated time, from whatever cause arising will not be considered. Bulky tenders which cannot be placed in the tender box will be received by KPC as indicated in the Appendix to instructions to tenders KPC may at its discretion, extend the deadline for the submission of tenders through the issuance of an Addendum in accordance with clause 3.7, in which case all rights and obligations of KPC and the tenderers previously subject to the original deadline shall thereafter be subjected to the new deadline as extended Any tender received by KPC after the prescribed deadline for submission of tenders will be returned unopened to the tenderer. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 15 of 92

16 3.19 Modification and withdrawal of tenders The tenderer may modify or withdraw his tender after tender submission, provided that written notice of the modification or withdrawal is received by KPC prior to the prescribed deadline for submission of tenders The tenderer s modification or withdrawal notice shall be prepared, sealed, marked and dispatched in accordance with the provisions for the submission of tenders, with the inner and outer envelopes additionally marked MODIFICATION or WITHDRAWAL as appropriate No tender may be modified subsequent to the deadline for submission of tenders No tender may be withdrawn in the interval between the deadline for submission of tenders and the period of tender validity specified on the tender form. Withdrawal of a tender during this interval will result in the forfeiture of the Tender Surety Subsequent to the expiration of the period of tender validity prescribed by KPC, and the tenderer having not been notified by KPC of the award of the Contract or the tenderer does not intend to conform with the request of KPC to extend the period of tender validity, the tenderer may withdraw his tender without risk of forfeiture of the Tender Surety. TENDER OPENING AND EVALUATION 3.20 Tender opening KPC will open the tenders in the presence of the tenderer s representatives who choose to attend at the time and location indicated in the Invitation to Tender. The tenderers representatives who are present shall sign a register evidencing their attendance Tenders for which an acceptable notice of withdrawal has been submitted, pursuant to clause 3.19 will not be opened KPC will examine the tenders to determine whether they are complete, whether the requisite Tender Securities have been furnished, whether the documents have been properly signed and whether the tenders are generally in order. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 16 of 92

17 At the tender opening, KPC will announce the tenderer s names, total tender price, tender price modifications and tender withdrawals, if any, the presence of the requisite Tender Security and such other details as KPC may consider appropriate. No tender shall be rejected at the tender opening except for late tenders KPC shall prepare minutes of the tender opening including the information disclosed to those present Tenders not opened and read out at tender opening shall not be considered further for evaluation, irrespective of the circumstances. Any tender received after the deadline for submission of tender shall be returned to the tenderer unopened Process to be confidential After the public opening of tenders, information relating to the examination, clarification, evaluation and comparisons of tenders and recommendations concerning the award of Contract shall not be disclosed to tenderers or other persons not officially concerned with such process until the award of Contract is announced Any effort by a tenderer to influence KPC in the process of examination, evaluation and comparison of tenders and decisions concerning award of Contract shall result in the rejection of the tenderer s tender Clarification tenders To assist in the examination, evaluation and comparison of tenders, KPC may ask tenderers individually for clarification of their tenders, including breakdown of unit prices. The request for clarification and the response shall be in writing or by cable, facsimile or telex, but no change in the price or substance of the tender shall be sought, offered or permitted except as required to confirm the correction of arithmetical errors discovered by KPC during the evaluation of the tenders in accordance with clause No Tenderer shall contact KPC on any matter relating to his tender from the time of the tender opening to the time the Contract is awarded. If the tenderer wishes to bring additional information to the notice of KPC, he shall do so in writing. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 17 of 92

18 3.23 Determination of responsiveness Prior to the detailed evaluation of tenders, KPC will determine whether each tender is substantially responsive to the requirements of the tender documents For the purpose of this clause, a substantially responsive tender is one which conforms to all the terms, conditions and specifications of the tender documents without material deviation or reservation. A material deviation or reservation is one which affects in any substantial way the scope, quality, completion timing or administration of the Works to be undertaken by the tenderer under the Contract, or which limits in any substantial way inconsistent with the tender documents, KPC s rights or the tenderers obligations under the Contract and the rectification of which would affect unfairly the competitive position of other tenderers who have presented substantially responsive tenders Each price or unit rate inserted in the Bills of Quantities shall be a realistic estimate of the cost of completing the works described under the particular item including allowance for overheads, profits and the like. Should a tender be seriously unbalanced in relation to KPC s estimate of the works to be performed under any item or groups of items, the tender shall be deemed not responsive A tender determined to be not substantially responsive will be rejected by KPC and may not subsequently be made responsive by correction of the non-conforming deviation or reservation Correction of errors Tenders determined to be substantially responsive shall be checked by KPC for any arithmetic errors in the computations and summations. Errors will be corrected by KPC as follows; Where there is a discrepancy between the amount in figures and the amount in words, the amount in words will govern Where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity, the unit rate as quoted will prevail, unless in the opinion of KPC, there is an obvious typographical error, in which case adjustment will be made to the entry containing that error. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 18 of 92

19 The amount stated in the tender will be adjusted in accordance with the above procedure for the correction of errors and, with concurrence of the tenderer, shall be considered as binding upon the tenderer. If the tenderer does not accept the corrected amount, the tender may be rejected and the Tender Security may be forfeited in accordance with clause (c) Conversion to single currency For comparison of tenders, the tender price shall first be broken down into the respective amounts payable in various currencies by using the selling rate or rates of the Central Bank of Kenya ruling on the date thirty days (30) days before the final date for the submission of tenders KPC will convert the amounts in various currencies in which the tender is payable (excluding provisional sums but including Day works where priced competitively) to Kenya Shillings at the selling rates stated in clause Evaluation and comparison of tenders KPC will evaluate only tenders determined to be substantially responsive to the requirements of the tender documents in accordance with clause During financial evaluation, KPC will determine for each tender the evaluated tender price by adjusting the tender price as follows; (a) Making any correction for errors pursuant to clause 3.24, (b) Excluding Provisional Sums and provision, if any, for Contingencies in the Bills of Quantities, but including Day works where priced competitively KPC reserves the right to accept any variation, deviation or alternative offer. Variations, deviations, alternative offers and other factors which are in excess of the requirements of the tender documents or otherwise result in the accrual of unsolicited benefits to KPC, shall not be taken into account in tender evaluation. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 19 of 92

20 Price adjustment provisions in the Conditions of Contract applied over the period of execution of the Contract shall not be taken into account in tender evaluation If the lowest evaluated tender is seriously unbalanced and/or front loaded in relation to KPC s estimate of the items of work to be performed under the Contract, KPC may require the tenderer to produce detailed price analyses for any or all items of the bills of Quantities, to demonstrate the relationship between those prices, proposed construction methods and schedules. After evaluation of the price analyses, KPC may require that the amount of the Performance Security set forth in clause 3.29 be increased at the expense of the successful tenderer to a level sufficient to protect KPC against financial loss in the event of subsequent default of the successful tenderer under the Contract The tender evaluation committee shall evaluate the tender within 14 days of the date of opening the tender KPC may at any time terminate procurement proceedings before award and shall not be liable to any person for the termination KPC shall give prompt notice of the termination to the tenderers and on request give its reasons for termination within 14 days of receiving the request from any tenderer Persons not officially involved in the evaluation of tender shall not attempt in any way to influence the evaluation Any person who has a conflict of interest with respect to the procurement shall not participate in the procurement proceedings. AWARD OF CONTRACT 3.27 Award Subject to clause KPC will award the Contract to the tenderer whose tender is determined to be substantially responsive to the tender and has the highest combined technical and financial score subject to possessing the capability and resources to effectively carry out the Contract Works. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 20 of 92

21 KPC reserves the right to accept or reject any tender, and to annul the tendering process and reject all tenders, at any time prior to award of Contract, without thereby incurring any liability to the affected tenderers or any obligation to inform the affected tenderers of the grounds for KPC s action Notification of award and signing of the contract Prior to the expiration of the period of tender validity prescribed by KPC, KPC will notify the successful tenderer in writing that his tender has been accepted and at the same time notify the unsuccessful tenderers that their tenders have not been successful. This letter (hereinafter and in all Contract documents called Letter of Acceptance ) shall name the sum (hereinafter and in all Contract Notification of award shall not constitute the formation of a Contract until the parties sign a formal contract Within twenty eight (28) days of receipt of the contract form from KPC, the successful tenderer shall sign the form and return it to KPC together with the required Performance Security The parties to the contract shall have it signed within 30 days from the date of notification of contract award unless there is an administrative review request Performance guarantee Within Twenty eight (28) days of receipt of the notification of award from KPC, the successful tenderer shall furnish KPC with a Performance Security in an amount stated in the Appendix to Instructions to Tenderers The Performance Security to be provided by the successful tenderer shall be an unconditional Bank Guarantee issued at the tenderer s option by an established and a reputable Bank approved by KPC and located in the Republic of Kenya Advance payment There shall be no advance payment in this project Corrupt or fraudulent practices KPC requires that tenderers observe the highest standard of ethics during the procurement process and execution of contract. A tenderer shall sign a declaration that he has not and will not be involved in corrupt and fraudulent practices. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 21 of 92

22 APPENDIX TO INSTRUCTIONS TO TENDERERS Instructions to Tenderers Reference Clause Particulars of Appendix to Instructions to Tenderers The tenderer shall provide the following information regarding this participation for the local partner: Full identity of the local firm. Certificate of Incorporation of the company/business Registration of the local firm. Valid KRA Tax Compliance Certificate of the local firm. Registration with National Construction Authority (NCA) for those firms proposed to carry out engineering works Registration with National Environment Management Authority (NEMA) for those firms proposed to carry out EIA Study. The local firm s undertaking to abide by the Public Procurement and Disposal Act, 2005 and the regulations thereto. A signed statement to confirm that the local firm is not limited or disqualified under the provisions of The Public Procurement and Disposal Act, 2005 and regulations, 2006 in force in Kenya. Sections of the work to be executed by the local firm. The local firm s relevant experience for the section of the works assigned by the main contractor. The local firm s financial capability. Attach audited accounts for the last three years to demonstrate financial capability for undertaking the project. The local firm s availability of Human Resources. The tenderer shall demonstrate availability of necessary staff with adequate qualifications, capability and experience to undertake the assignment. All the key personnel must be able to effectively communicate in the English language. The bidders to provide a list of staff with their qualifications and experience in a tabulated form. The local firm s availability of equipment. The local partner shall submit a list of the major equipment proposed for carrying out the assigned component of EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 22 of 92

23 Clause Clause Clause the works, including statement of ownership or hiring. Client s address: The Managing Director, Kenya Pipeline Company Limited, Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box , Nairobi, Kenya Bulky tenders will be received at: The Procurement Manager s Office Kenya Pipeline Company Limited, Sekondi Rd, off Nanyuki Rd, Industrial Area P. O. Box , Nairobi, Kenya Performance Guarantee shall be: 10 percent of the contract price Technical Evaluation Criteria KPC will carry out technical evaluations of the bids first, which shall be scored based on the evaluation criteria given below. Only tenderers who pass the 80 percent overall mark and 50 percent of each evaluation criteria on the technical evaluation shall qualify to have their financial submissions opened and evaluated. Bidders are therefore requested to carefully read the qualification criteria and furnish authentic and complete information in response. Item Criteria Max Score 1 Experience and Past Performance 20 The bidder shall provide proof or references of successful design and construction of at least four cross country oil/gas pipeline in an EPC contract during the last 15 years. Each pipeline shall be of minimum distance of 100 km and of any diameter ranging from 6 to 48. a. Projects less than 100 km will not be scored even if references are provided b. A bidder who submits no references/proof will score 0 points c. A bidder who submits references/proof of four EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 23 of 92

24 projects of at least 100 km each scores 5 marks per project. Each project to be accompanied by a reference letter, contract or any supporting document from Client as proof of engagement for it to be considered. 2 Pipeline System Design 15 The bidder shall provide preliminary design for the proposed pipeline system based on international standards to meet the project objective Bidders to provide:- a) Sample Hydraulic analysis based on i) Line Profile (2 Mark) ii) State software used (2 mark) iii) Sample calculation on head loss (2 Mark) iv) Determination of pipe thicknesses for the entire line (2 mark) b)sample Surge analysis (4 marks) c) Brief write up on Interface (mixed product) management at PS 28. Bidders to describe this with reference to existing Interface (mixed product) tanks at PS28 (3 Marks) 3 Financial Capability 5 The bidder shall provide proof in form of certified audited accounts for the last five (5) financial years Turnover i) A bidder who submits a combined turnover of less than US $ 20 million will not be scored. ii) A bidder who submits turnover for a period less than 5 years will not be scored. iii) A bidder who submits unaudited accounts will not be scored. iv) A bidder who submits an average combined turnover of more than US $ 20 million for the last 5 years will score 5 marks 4 Equipment from renown manufacturers 5 Source of key equipment to be installed in the project. The bidder shall provide a duly filled table confirming the equipment manufacturer as advised. a) A bidder who does not confirm that thay will source key equipment from the renown manufacturers 0 marks EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 24 of 92

25 b) A bidder who confirms that the source will be from the renown manufacturers provided will score 5 points. 5 Completion time 5 a) A bidder who offers to complete the works in 12 months or less gets 5 marks b) A bidder who offers to complete the works in more than 12 months but less than 18 gets 3 marks c) A bidder who offers to complete the works in more than 18 months gets 2 marks 6 Qualifications and Experience of Key Personnel 15 a) Project Manager (4 Marks) The bidder shall provide a detailed curriculum vitae of the proposed Project Manager who has designed and supervised the construction of Oil Pipelines. The candidate should be Registered/Chartered Engineers or Engineers affiliated to regulating body in country of origin and holders of a Bachelors Degree in Mechanical Engineering or equivalent. i) A bidder who provides staff with less than 10 years will not be scored. ii) A bidder who provides staff with years will score (3 marks) iii) A bidder who provides staff with more than 15 years will score (4 marks) b) Health, Safety and Environment (HSE) Officer (1 Mark) The bidder shall provide detailed curriculum vitae of the proposed HSE staff with internationally recognized certification and have at least 10 years experience in HSE matters in the oil /gas pipeline construction. (Attach copies of certificates) i) 1 Mark shall be awarded to the person who meets this requirement. ii) No marks shall be awarded to a person without HSE qualification. c) Civil Engineer (2 Marks) The bidder shall provide a detailed curriculum vitae of EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 25 of 92

26 the proposed Civil Engineer, Registered/Chartered Engineer affiliated to regulating body in country of origin. The Engineer shall be a graduate with a Civil Engineering Degree with a minimum of 6 years experience with at least 5 years in the Oil and Gas industry. i) A bidder who provides staff with less than 6 years will not be scored. ii) A bidder who provides staff with 6-10 years will score (1 mark) iii) A bidder who provides staff with more than 10 years will score (2 marks) d) Mechanical Engineer/Chemical Engineer (3 Marks) The bidder shall provide a detailed curriculum vitae of the proposed Mechanical/ Chemical Engineer, Registered/Chartered/ affiliated to regulating body in his country of origin. The Engineer shall be a graduate with Bachelors Degree in Mechanical Engineering or equivalent with a minimum of 10 years experience with at least 8 years in the Oil and Gas industry. i) A bidder who provides staff with less than 10 years will not be scored. ii) A bidder who provides staff with 10 years but at least 8 years in oil and gas will score 1 mark iii) A bidder who provides staff with more than 10 years and at least 8 years in oil and gas will score 3 marks e) Instrumentation and Controls Engineer (1 Mark) The bidder shall provide detailed curriculum vitae of the proposed Instrumentation and Control Engineer, Registered/Chartered affiliated to regulating body in country of origin. The Engineer shall be a graduate with Bachelors Degree in Electrical and Electronics or Telecommunication with a minimum of 6 years experience in control and process automation. i) A bidder who provides staff with less than 6 years will not be scored. ii) A bidder who provides staff with over 8 years will score (1 mark) EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 26 of 92

27 f) Electrical Engineer (1 Mark) The bidder shall provide a detailed curriculum vitae of the proposed Electrical Engineer, Registered/Chartered Engineer or Engineer affiliated to regulating body in country of origin. The Engineer shall be a graduate with Bachelors Degree in Electrical or its equivalent with a minimum of 8 years experience in electrical installations. i) A bidder who provides staff with less than 8 years will not be scored. ii) A bidder who provides staff with at least 8 years will score (1 mark) g) Corrosion Control Engineer (1 Mark) The bidder shall a detailed curriculum vitae of the proposed Corrosion Control Engineer certified by NACE. The Engineer shall be a graduate with a minimum of 8 years experience in Corrosion Control with at least 4 years experience in Oil and Gas Industry. i) A bidder who provides staff with less than 8 years will not be scored. ii) A bidder who provides a staff not certified by NACE will not be scored. iii) A bidder who provides staff with 8 years (at least 4 years in oil and gas) and is certified by NACE will score (1 mark) h) QA/QC Engineer (2 Mark) The bidder shall a detailed curriculum vitae of the proposed QA/QC personnel with minimum qualification of a diploma in any Engineering discipline with certification in Non-destructive testing (NDT). The personnel shall have a minimum of Level II certification with minimum of 10 years experience. (Attach copies of certificates). i) A bidder who provides staff without NDT certification will not be scored ii) A bidder who provides staff with NDT certification and at least 10 years will score 1 marks. EPC TENDER FOR THE PIPELINE FROM SINENDET TO KISUMU Page 27 of 92