Invitation to Tender (ITT)/ Request for Quotation (RFQ) For Procurement of MEDIUM CARBON SILICO MANGANESE. Through. On - Line Reverse Auction

Transcription

1 Invitation to Tender (ITT)/ Request for Quotation (RFQ) For Procurement of MEDIUM CARBON SILICO MANGANESE Through On - Line Reverse Auction Conducted by Mjunction services limited Tender No : PU-A DUE DATE FOR RECEIPT OF TENDER : DUE DATE FOR OPENING OF TENDER : Quantity : 2400MT Delivery period : October 2013 to March 2014 Please note that VAT is 5% for supplies sourced from Tamilnadu and Setoff allowed is 4.4% 1/25

2 Dear Sirs Steel Authority of India Ltd, Salem Steel plan intends to procure Medium carbon Silico manganese through the process of On line Reverse auction. Accordingly, the above referred enquiry is enclosed indicating the details of requirement along with the methodology for participation in the tender / Reverse Auction. You are requested to read carefully the instructions contained in our enquiry and submit your quotation in line with our requirement indicated in the enclosed enquiry. The quotation is required to be submitted as follows: Tender to be submitted at Tender sent by post / courier to be addressed to Tender to be submitted by The tender Box at Salem Steel Plant, Salem, Tamil Nadu, Pin India The Dy General Manager I/c(MM) Steel Authority of India Limited Salem Steel Plant Salem Phone: Fax : On or before : at 1500 hrs Please note that the quotations received after due date and time will be rejected. You may contact the undersigned as well as our service provider M/s Mjunction at the address / telephone numbers mentioned in the enquiry for any clarification. Tender documents can be downloaded from the sail web site The same can be had from DGM I. /c (MM), SAIL, Salem Steel Plant. Salem Steel Plant is not responsible for the delayed receipt of tender documents / offer sent by post. Thanking you Yours faithfully For Steel Authority of India Ltd Salem Steel Plant Dy General Manager I/c(MM) Salem Steel Plant, Salem 13. 2/25

3 Contents: 1.0 Tender processing for on line Reverse Auction. 2.0 Service Provider and Issuance of RFQ 3.0 Submission of techno commercial bids 4.0 Eligibility Criteria 5.0 Opening of Techno Commercial Bids 6.0 Participation in On line Reverse Auction for price bidding 7.0 Emergence of L-1 Vendors 8.0 Order distribution 9.0 Commercial terms and conditions 10.0 Security Deposit 11.0 Weight tolerance 12.0 Inspection 13.0 General Terms and Conditions. Annexures Annexure -1 Annexure II Annexure III Annexure IV Annexure V Annexure VI Format for Acceptance of Commercial terms, General Terms and Conditions and all other Terms of the RFQ Format of Technical specification Format for basic information of the vendor Definition of Key Terms Reverse Auction General Rules and Regulations governing conduct of Online Reverse Auctions on Mjunction Platform Format for submitting last quoted prices 3/25

4 MATERIALS MANAGEMENT DEPARTMENT Enquiry No. PU-A dated For supply of 2400 MT of Medium Carbon Silico Manganese Price bidding through On Line Reverse Auction EMD : Rs 5.00 lakhs (Rupees five lakhs only) Quantity: : 2400 MT Delivery schedule :October 2013 to March (Delivery shall be made in staggered manner as per SSP s requirement) Price discovery will be made in three phases initially for 800 MT and balance depending upon production. Due date and time for submission of tender (Techno Commercial Bid) : hrs Due date and time for opening of Tender : hrs (Techno Commercial Bid) 1.0 Brief description of the Tender processing for On Line Reverse Auction is given below: 1.1 Tenderers shall submit their techno commercial bid only along with all required documents as per the terms of enquiry to DGM I/c (MM) Steel Authority of India Ltd, Salem Steel Plant, Salem, , India. 1.2 All the tenderers whose offers are found techno commercially acceptable become eligible for participating in price bidding through On Line Reverse Auction over Internet. 1.3 On Line reverse Auction (RA) will be used for Part II price bid evaluation, date and time of which will be intimated to you later. 1.4 Non placement of bid by an eligible bidder during the Reverse Auction event may adversely affect consideration of the bidder for the subsequent RFQ. 1.5 The service provider would intimate Date and Time for Start of Reverse Auction and duration of auction to the tenderers in advance. Login ID and Password specific to each tenderer is given and demonstration of bidding (on line) process would also be provided to enable each tenderer to fully understand the process of bidding On line. (for details please refer item 5.0) 1.6 Thereafter, at scheduled time the screen for ON line bidding is launched wherein the supplier would put in their best offers through On line bids by which the bids below the start bid price can be submitted by the tenderers to secure orders for the supply of items / services. 1.7 All eligible tenderers having password can view the bidding on the computer screen and also enter their prices any number of times during the duration of bidding. 4/25

5 1.8 The bidder quoting the lowest price at the close of auction time / extended auction time becomes eligible for getting the order for tendered item / quantity if it has been decided to place order on only one party at the Tendering Techno commercial evaluation stage. SAIL may distribute order on more than one party before conduct of Reverse Auction. 1.9 L1 bidder to get maximum share of order volume, if not constrained by capacity / capability (as assessed by Salem Steel Plant). In case of multiple sourcing, the same shall be guided by the SAIL Purchase / Contract Procedure 2009(PCP 09). Overview of the ITT/RFQ 1.10 Purchase Cost Reduction Objectives of SAIL/SSP Steel Authority of India Ltd, Salem Steel Plant (SAIL/SSP) aims to reduce Purchase Cost of substantially. To achieve this target, SSP is adopting the on-line Reverse Auction (RA) methodology Key Features in Medium carbon Silico manganese Purchase Process This Invitation To Tender (ITT) /Request for Quotation (RFQ) is subject to the general conditions of contract governing supply contracts (SAIL-P/1) and other special terms and conditions for the procurement of by SSP as detailed herein and in the enclosed annexure. Use on-line Reverse Auction (RA) for price bid evaluation. Evaluation of the lowest tenderer (L1) on per MT Landed Cost Net of Cenvat (LCNC) on free delivery at plant stores basis. L1 Tenderer to get maximum share of order volume, if not constrained by capacity /capability (as assessed by SAIL/SSP), in case of multiple sourcing and the same shall be guided by SAIL Purchase Contract Procedure-2009 (PCP09) 2.0 Service Provider (SP) and the Issuance of RFQ SAIL has engaged the services of its Joint Venture Company M/s Mjunction services limited (MJ) for conducting the Reverse Auctions on behalf of SAIL/SSP. MJ is fully authorised to give clarifications / coordinate with the suppliers in consultation with SAIL/SSP w.r.t conduct of Reverse Auction for procurement of Medium carbon Silico manganese. Their address is given below: Corporate Office mjunction services limited Godrej Water Side, 3rd Floor, Tower 1, Plot V, Block DP, Sector V, Salt Lake, Chennai Office mjunction services limited Basement, New No. 91,Old No.44, Armenian Street, 5/25

6 Kolkata , West Bengal, India Chennai Ph : to 1725 Fax: / Fax: Contact Persons Ms.Satyavani Burra Mobile: Vani.burra@mjunction.in Mr. Thiruvalluvan, Mobile : thiruvalluvan.k@mjunction.in Mrs.Uma.R Ph: to 35 uma.r@mjunction.in 2.2 Suppliers who are acceptable to SAIL/SSP and who accept all the Terms and Conditions shall be intimated by M/s Mjunction services limited to participate in the Reverse Auction to be held on the date mentioned in the first page of the RFQ. 2.3 The ITT / RFQ shall be sent by SAIL/SSP to the approved list of suppliers. Simultaneously a copy of the same shall be given to the Mjunction to contact the supplier(s). MJ will explain the Reverse Auction process to all the prospective tenderers and clarify issues, if any. It will be the responsibility of the tenderers to get themselves acquainted to their satisfaction with the on-line bidding process by thoroughly interacting with MJ. Only SAIL, SSP will be empowered to approve any deviations from the ITT/RFQ asked for by the Supplier. 2.4 Vendor Enablement MJ shall have the responsibility of familiarizing the tenderers with the Reverse Auction Process (including training to the vendors). 3.0 Procedure for filling up and submission of techno commercial bids 3.1 Tenderers will have to submit Techno commercial bid as a first step. The techno commercial bid comprises of Technical & commercial bid which has to be submitted in two copies in a sealed envelope. The envelope should clearly be super scribed with Enquiry Reference, due date and time of submission, due date and time of opening and clearly indicating This envelope contains Techno commercial bid against Enquiry No. PU-A dated for procurement of Medium carbon silico manganese through on line reverse auction. The techno commercial bid should include the following. 6/25

7 3.1.1 Bank Guarantee / Demand Draft towards EMD for Rs.5,00,000 (Rupees five lakh only) EMD can be submitted in the form Bank Guarantee also issued by Nationalised/Scheduled banks. Bank guarantee issued by Co operative Banks and Gramin Banks are not acceptable A letter from the bidder accepting all commercial terms and conditions, general terms and conditions and all other terms and instructions contained in this enquiry. Also an undertaking from the bidder that they have understood the Reverse auction process and are willing to participate in RA process and shall abide by all the rules and regulations of the RA. Format for the letter and the undertaking are as per the format given in Annexure I Confirmation of acceptance of Technical specification, inspection procedure and criteria for acceptance vide Annexure II Details of Taxes and duties vide Annexure III Basic information regarding the supplier vide annexure IV Certified / attested copies of all documents asked for in the enquiry Name of the person who is authorized to bid in Reverse Auction on behalf of the firm / supplier. The user ID and password would be given to this person only The E.C.C registration and Excise Tariff Code, state and Central Sales Tax Registration Nos, if applicable One copy of enquiry (all pages) signed on each page to be submitted to acknowledge receipt and as a token of acceptance of terms Techno Commercial bid should not contain any price or any indication of prices; else the offer will be rejected Offers received after the due date and time will be rejected Offers without EMD will be rejected. 4 ELIGIBILITY CRITERIA: 4.2 The tenderer shall be a manufacturer of Medium Carbon Silico manganese (Mc Si Mn) 4.3 Documentary evidence indicating that the tenderer is manufacturer of Ferro- Alloys in the form of self attested copy of Central Excise registration or small scale industry registration or factory license or other documents issued by Govt agencies to be submitted along with the tender. 4.4 Copies evidencing contract for supply of 800 MT (in single or multiple orders) of Medium Carbon Silico Manganese to any of the SAIL steel Plants or any private sector steel industry in India or abroad in any one year either in a single order or multiple orders during one of the financial years , , or (upto May 2013) to be submitted by the tenderer along with the Part I Techno commercial Offer. 4.5 The tenderer should have an average annual turn over of Rs 5.6 crores during the last three financial years ending A copy of audited annual balance sheet and profit and loss account to be enclosed with the techno commercial offer, duly self certified.. 7/25

8 Opening of Techno Commercial Bids 5.1 The Techno commercial bids will be opened on at 1000 hrs. at Salem Steel Plant, Salem in the presence of authorized representatives of tenderers who might choose to be present. 6.0 Participation in On Line Reverse Auction for price bidding 6.1 Tenderers will be required to participate in On line Reverse auction over Internet for bidding. 6.2 Definitions of Key Terms of Reverse Auctions are given in Annexure V and General Terms and Conditions are given in Annexure VI. 6.3 The key features for participation in a Reverse Auction are given below: 6.4 The Reverse Auction will be conducted on Service Provider s platform. 6.5 The service Provider shall intimate information regarding schedule (date and duration) of the Reverse auction to all the techno commercially acceptable tenderers. 6.6 There would be an auto extension of bid time in case bids are placed during last seven minutes of the indicated bid closure time. The auto extension rule will extend the bid time by a period of seven minutes till bids continue to get placed or the buyer decides to terminate the Reverse Auction. 6.7 All bidders should nominate a person who would be the authorized Bidder (i.e, the person who is authorized to bid in Reverse Auction on the Firm s behalf). The USER ID AND password will be given to this person only. The Service Provider will intimate a secure and confidential Login ID and Password specific to each tenderer, for participating in the Reverse Auction. 6.8 The Start Bid Price may be the L-1 of the initial on line sealed bidding. 6.9 The bidding will take place in Indian Rupees and for unit metric tonne During the Reverse Auction, bidders have to quote for the full quantity else their bid will not be accepted. Bidders shall not be allowed to quote for part 8/25

9 quantity. However, SAIL reserves the right to distribute the quantity of an item among multiple suppliers at its sole option During the Reverse Auction, suppliers shall be allowed to revised their price and bring it downward only. Bidders are not allowed to quote above the Start Bid Price under any circumstances All bidders have to confirm through a letter / fax ( ) their last quoted prices for each market within four hours of concluding the Reverse Auction (format enclosed as Annexure VII). They also need to mention in the same letter, if they have matched L-1 prices On line, if offered to match All bidders are advised to quote from a reliable Internet facility as neither SAIL nor MJ (SP) would be responsible for any failure in the Internet connectivity during bidding It is categorically to state on behalf of M/s SSP, and M/s Mjunction that the Tenderers need not pay any fee towards training, for actual bidding etc., in the Reverse Auction and the Tenderers need not subscribe to any of the services in lieu of participation in the Reverse Auction Written Acceptance in-toto to all the Terms & Conditions mentioned in this document is a pre-requisite for securing participation in the on-line Reverse Auction conducted by Mjunction on behalf of Salem Steel Plant for the products/ services above. Hence, the tenderer is requested to sign all pages of this RFQ and submit along with the Techno Commercial bid. 7 The emergence of L1 vendors in the Reverse Auction shall be decided on the basis of Lowest Price offered for supply at Salem Steel Plant, Salem. 7.1 The lowest price offered for the item as the case may be, would become the L-1 tenderer. The rank of other tenderers, i.e, L2, L3, L4 etc will be decided based on prices quoted by the tenderers during Reverse Auction. 7.2 The bidders shall submit their detailed price break up clearly specifying the basic price, taxes and duties, freight etc within two working days of the closure of the auction to Ms. Vani Burra with a copy to DGM I/c (MM) Salem Steel Plant, Salem. 8 Purchase preference to India PSU/ Indian Govt Organisations: 8.1 Purchase preference to PSUs Government organisations shall be based on the guidelines issued by the Government of India / SAIL. 9 Commercial Terms and conditions 9.1 Validity of the offer: The Techno commercial offer should be kept valid for 180 days from the due date of tender opening and the on line price bid should be kept valid for four weeks from the date of holding the Reverse Auction. 9.2 Payment terms: 100% payment will be made within 30 days of receipt and acceptance of materials. 9/25

10 10 Weight recorded at SSP weighbridge will be considered as final. Weighment tolerance : (-) 0.5% 11 Quantity tolerance: The supplier shall supply in full truck loads. In case the last truck load is less than one truck load, the supplier may supply full truck load by making up the quantity. 12 INSPECTION: Inspection will be done at our end based on the test analysis report furnished by the supplier. 13 General Terms and conditions 13.1 The RFQ shall be read in conjunction with the General Conditions of Contract, SAIL-P! (Can be downloaded from SAIL website given above). and in Invitation to Tender published by the Purchaser together with any other document issued and forming part of this tender. All these documents shall form the complete set of documents. They are complimentary and anything called for by one and not called by the other shall be considered as binding as though called for by all. Wherever the clauses stipulated in the General Conditions of Contract are contradictory to those stated herein, the terms indicated in this RFQ shall have precedence If any trend of cartel formation is observed in the tendering & bidding process, bids of all tenderers involved in cartel formation are liable to be rejected Tenderer must declare whether the proprietor or any partner of the firm, or director of their company, has any relation with any employee working in SAIL, if so give the name of the employee and the relationship and also whether any of them has a relationship within the meaning of section 6 of companies Act 1956 with any directors of SAIL and if so, give details SAIL in its sole discretion, unconditionally and without having to assign any reason, reserves to itself the right: To accept or reject the lowest offer or any other tender or all the tenders To accept any tender in full or in part To distribute the order quantity to more than one tenderer To allow purchase preference to the PSU and Joint Venture with PSUs as per the extant guidelines of Government of India To accept or reject the RA result. The tenderers would have no claim for issuance of Pos in such cases To cancel or reschedule Reverse Auction when confirmed bidders are insufficient to conduct Reverse Auction. 10/25

11 14 In the event of receiving same price in the Reverse Auction, Ranking will be declared on the basis of first come first serve basis 15 ALL OTHER TERMS AND CONDITIONS SHALL BE AS PER THE GENERAL CONDITIONS OF CONTRACTS GOVERNING PURCHASE CONTRACTS(SAIL/P1) WHICH IS AVAILABLE IN THE SAIL WEBSITE Asst.General Manager (MM-Purchase) Salem Steel Plant, Salem Phone: Fax: The details of the tenderer authorized to bid on our behalf are as follows. Name : Designation : ID : Contact phone no : Address : Acceptance to the Rules and Regulations: We have gone through the general rules and regulations and confirm our acceptance of the same in toto. Signed & Stamped in acceptance of the terms & conditions Name : Designation of Signatory : Organization : Contact Phones : Date & Place : For any clarifications, please contact: Ms.Satyavani Burra / Mobile: During Auction /25

12 Ms.Uma id: - uma.r@mjunction.in 12/25

13 ANNEXURE - I (To be submitted on Supplier s Letter Head) Format for Acceptance of Commercial Terms, General Terms and Conditions and all other Terms of the RFQ We (Supplier Name)having registered office at (Address)agree to all the Commercial, General & other Terms & Conditions listed in the Enquiry No dated for procurement of Medium carbon Silico manganese through Reverse Auction We confirm that we are in a position to supply material as per the specification given in Enquiry. We have also understood the Reverse Auction Process and the Reverse Auction rules and special instructions given in the Enquiry. We agree to participate in the Reverse Auction and abide by the rules. We nominate an executive, whose details are given below, to put the bids on our behalf. The details of the bidder authorised to bid on our behalf is as follows. Name & Designation : ID : Contact phone nos. : Address : (Signature & Seal) Place: Date: 13/25

14 ANNEXURE-II Specification 1. Material MEDIUM CARBON SILICO MANGANESE 2. Chemical Specification Element Manganese Silicon Carbon Phosphorous Sulphur Percentage 55.0% Min 20.0% Min 0.5% Max 0.15% Max 0.02 % Max 3. Size mm (90% Min) Tolerance on size +70 mm (NIL) mm (10%) 4. Packing: In 1.0 Mt Jumbo Bags 5. Marking on Packing Me Si Mn, Suppliers name in abbreviation, SAIL/SSP. Bag No. Gross Weight and Net Weight. 6. Test & Guarantee Certificates: a) Test Certificates must show analysis of all above elements and Size. b) Guarantee Certificate for conformity of quality of materials to Specification shall be provided for minimum 1 year. 7. Variation in Specification: Element Percentage Variation/Remarks Manganese 55.0% Min Below 53% rejected % Pro rata basis of payment. Silicon 20.0% Min Below 20% rejected Carbon 0.5% Max More than 0.5% rejected. Phosphorous 0.15% Max Above 0.17% rejected %- 2 % penalty Sulphur 0.02% Max Above 0.04% rejected %- 1% Penalty. 14/25

15 Sampling and Analysis: Samples shall be collected on representative basis and testing of materials shall be done after receipt of materials at SSP stores as per the prevailing practice. In case of dispute raised by the vendor on the inspection results, Joint Sampling and analysis is done in presence of Vendor s representative, SSP inspection agency and Met Services. No request for joint sampling is entertained after 15 days from the date of intimation of test results to the vendor. The supplier shall depute his authorized representative within one week from the date of intimation by SSP, failing which the original result will be binding. 15/25

16 ANNEXURE III Format for Basic Information of the Vendor Enquiry No: PU-A Dated: Instructions to fill up the Basic Information: i. Please use this worksheet to specify basic financial/ IR/ Contact information; ii. an authorized person should sign the document at relevant section. Past Industrial Relations track record, please mention if there was closure/ cessation of work at any of your plant(s) in the last 5 years. iii. iv. Use this form as Proforma/ Format. Use additional sheets to provide relevant information. Provide all the certified relevant documents w.r.t claims made in this Form. 1 Company s Name 2 Ownership Details 3 Manufacturer/ Distributor/ Dealer 4 ISO Status 5 Contact Person & Designation 6 Phone No. 7 Fax No. 8 I hereby certify that all information provided above is correct to the best of my knowledge. (Signature, name & seal of the authorized person) 16/25

17 ANNEXURE IV DEFINITION OF KEY TERMS Reverse Auction Reverse Auction refers to a forum where the requirement for one/ more Markets of an item is stated and the participants are required to bid down the price to be selected to supply the requirement. On-line Reverse Auctions On-line Reverse auctions refer to those Reverse Auctions conducted through the Internet with simultaneous bidding (from one or more locations). In other words, the venue for the auction is on an Internet website/ platform. The Mjunction website ( ) or any other URL assigned by Mjunction would constitute the venue for the purpose of the On-line auction. Award at the Reverse Auction The tenderer quoting the lowest price is normally allotted the item unless otherwise specified by the Client. Client Client is the individual/business entity who has contracted Mjunction to conduct such Reverse Auction. In case of Reverse Auction, the purpose would be to meet their requirement for item/s from among the sellers desiring to sell the items to the Client. Tenderer Tenderer is the individual/business entity participating in the Reverse Auction, intending to supply the item/s to the Client. To become a Tenderer in the auction, a business entity has to secure client approval for participation and also provide written assent to the General Rules and Regulations Auction Engine Auction Engine refers to the software that encapsulates the entire auction environment, processing logic and information flows. Mjunction is the sole owner of the auction engine and retains exclusive right over the utilization of the same. Preview Time Preview Time refers to the period of time that is provided prior to the commencement of bidding. This is to facilitate approved participants to view the auction details such as item specifications, bidding details and bidding rules. The purpose is also to familiarize participants with the functionalities and screens of the auction mechanism. It is not mandatory for Mjunction to provide Preview Time. Start Time Start time refers to the time of commencement of the conduct of the On-line auction. It signals the commencement of the Price Discovery process through competitive bidding. 17/25

18 Duration of the Reverse Auction It refers to the length of time the price discovery process is allowed to continue by accepting bids from competing tenderers. The duration of the auction would normally be for a pre-specified period of time. However, the bidding rules may state the conditions when the pre-specified duration may be extended/ curtailed. The conditions include: Curtailment of auction duration in the event of no bids for a specified period of time (Inactivity Time) Automatic extension in the event of bids being entered towards the end of the scheduled duration to facilitate the other tenderers to view and react to the bid. Auto Extension of the Auction Timings In the event of bids in the last few minutes of the scheduled bid time, the Bid Timings are automatically extended for a specified period from each such bid. Such Auto Extension shall continue until no bids are placed for the specified period (Engine remains inactive for the specified period). The Inactivity Time for Auto Extension purpose is normally 3 minutes. Mjunction however retains the right to change the same in consultation with SAIL/SSP. The Inactivity Time applicable for the particular On-Line Bid shall be communicated to the tenderer if it will be set to a value less than 3 minutes. End of the Reverse Auction End of the Auction refers to the termination of the auction proceedings signaling an end to the price discovery process. Auction Report Mjunction would provide an Auction Report to the Client containing a summary of the auction proceedings and outcome. The Auction Report would constitute the official communication from Mjunction to the client about the outcome of the Reverse Auction. ID and Pass Word - Password and ID shall be given to all the eligible vendors by the Service Provider for enabling the vendor to participate in the Reverse Auction. Start Bid Price Start Bid Price is the estimated Price of a lot decided by SAIL/SSP. This is the Maximum Price, which will be accepted by the Reverse Auction engine. Supplier have to quote a price lesser than the Start Bid Price for participating in the Reverse Auction. The computer shall not accept Price higher than Start Bid Price for a lot. Bidding will start at start Bid Price to be intimated in advance to the vendors eligible for bidding. This will be put up on the site and will also be communicated in advance through Fax/ . Minimum Decrement- Minimum decrement is the minimum amount a supplier has to reduce in order to beat a higher bid. For example, if a tenderer bids Rs 10,00,000/ - for a Market, others, in order to beat this bid, have to quote a lower price with a minimum decrement say of Rs 100/- i.e. in order to be eligible they have to quote Rs. 9,99,900/- (or lower) for the same Market. This minimum decrement shall be 18/25

19 pre-decided by Steel Authority of India Limited and will be in- built and displayed in the computer. PROXY BID- In the following circumstances, a tenderer may opt for proxy bidding. Where the tenderer is not confident of a reliable Internet Connectivity Where the speed of Internet Connection is slow and unable to catch-up with the speed of competitor s bids. To remain a leading tenderer till the lowest bid value fed in the auction machine. Where the tenderer is required to put bids in more than one Market/Lot at a time Following is the outcome when a tenderer exercises the proxy option: A proxy bid remains L1 till the lower bid value fed in the auction machine is exhausted i.e. a lower bid, less than the lower bid value offered by the tenderer exercising the proxy, is offered by another tenderer. If a tenderer bids a price equal to the lower limit of the proxy bid, the proxy tenderer gets precedence over him at that price. To let the system place bids on your behalf you need to check (click) the proxy bid box on the bidding details page and place the lowest value to which you can bid and then place submit button and confirm. Once the proxy is activated the bids are placed automatically as per the minimum decrements. The lowest value of your proxy bid amount is not visible by any other tenderer. Example: Suppose, the current bid in the market is Rs and the min. decrement is Rs.100 and you have activated proxy till Rs Now say a tenderer place a bid of Rs.9800, the system automatically bids Rs.9700 on your behalf at the same time and keeps you as a leading tenderer. 19/25

20 ANNEXURE V General Rules and Regulations governing conduct of On-line Reverse Auctions on the MJUNCTION platform and Terms and Conditions of the Buyer (SAIL/SSP) INTRODUCTION The General Rules and Regulations provided herein govern the conduct of On-line Reverse Auctions operated by Mjunction.com Private Ltd. These rules cover the roles and responsibilities of the parties in the On-line Reverse Auctions on the Mjunction platform. Acceptance in-toto to these General Rules and Regulations is a pre-requisite for securing participation in the On-line Reverse Auctions on the Mjunction platform. The key terms pertaining to the On-line Reverse Auctions are provided in the Annexure I. Prospective are advised to read through the same. Role of Mjunction Mjunction is the agency (operator) primarily providing the forum for conducting the Reverse Auction. As the agency providing the auction engine, the role of Mjunction would include: input of the details of the auction items and defining of the bidding rules as desired by the client, market making and training of prospective vendors Providing access to the approved vendors to participate in the auction. enhancing tenderer awareness of and comfort with the auction mechanism and bidding rules summarizing of the auction proceedings & communicate the outcome to the Client The responsibility for fulfillment of the contract rests between the tenderer and the client, and Mjunction shall have no liability on this account. Role of the Tenderer The role of the tenderer is outlined below: The tenderer would participate in the Reverse Auction with the aim of bidding to secure the auctioned item in the auction (being selected for supplying the client s requirement in a Reverse Auction). The tenderer would be provided access to the Auction through a User Id protected by a password. The tenderer needs to ensure that the User Id and password is not revealed to unauthorized persons. Access to the auction mechanism shall be provided to all the approved tenderer subsequent to obtaining their written consent to the General Rules & Regulations. 20/25

21 In the event of winning an allotment in the auction mechanism, the tenderer shall commit to fulfill outlined obligations under the contract. Bidding Rules: The Bidding Rules refer to the information and terms defined specifically for a particular Reverse Auction. The purpose of the Bidding rules is to provide approved tenderer with the information and terms specific to the auction in which they are bidding. This would include: Definition of the unit of bidding Start Time and duration of the Reverse Auction Any extension of the duration of the auction in the event of bids being received towards the end of the pre-specified duration Reserve Price (if specified) Minimum & Maximum Bidding Quantity (if specified) Price Decrements and any reduction in the price decrements in the auction in the event of inactivity Other attributes (informational/non-negotiable in nature). Definition of the underlying supply contract (qty, delivery schedule, freight, insurance & local levies) etc. Participation in the auction process presumes complete awareness and understanding of the bidding rules. Conduct of the Reverse Auction The Reverse Auction shall be communicated on pre-specified date. The key terms pertaining to conduct of the Reverse Auction such as Preview Time, Start Time, Duration and End Time have been specified in the Annexure. Mjunction retains the right to cancel or reschedule the Reverse Auction on any of the followings reasons: The number of confirmed is deemed insufficient to conduct the Reverse Auction Some of the confirmed tenderers are unable to access the module due to infrastructural problems such as sustained power failure or telecommunication breakdown. No bid shall be accepted which is above any start bid price, or It is determined that one or more tenderers have submitted bids which are clearly below Cost. If the buyer decides so. The duration of the auction may also vary from the pre-specified period of time on account of termination of the auction by Mjunction: a) on the advice of the client or 21/25

22 b) on its own accord in case of situations where it is felt that continuance of the auction proceedings is prejudicial to the smooth conduct and/or the integrity of the auction process. Problems during the conduct of the Reverse Auction In the event of any problems being faced in the smooth conduct of the auction, Mjunction shall have the right to undertake one or more of the following steps: Cancellation/ premature termination of the Reverse Auction with/ without a subsequent rerun of the auction on a mutually decided date Cancellation of a bid Locking a tenderer s account (suspending operations of the account), etc. Liability of Mjunction Mjunction shall not be liable to the client/ in the auction or any other person/s for: any breach of contract by any of the parties in the fulfillment of the underlying contract any delays in initiating the On-line auction or postponement/cancellation of the On-line auction proceedings due to any problem with the hardware/ software/ infrastructural facilities or any other shortcomings. Confidentiality Clause Mjunction undertakes to handle any sensitive information provided by the client or confirmed for the Reverse Auctions with utmost trust and confidentiality. Jurisdiction Any disputes relating to the On-line auction module shall be subject to the sole jurisdiction of civil courts of Kolkata only to the exclusion of any other court. Right of the Client SAIL/SSP reserves the right to fully/ partly accept the bids or completely reject the same. Acceptance to the Rules and Regulations: We have gone through the general rules and regulations and confirm our acceptance to the same. We have also gone through and fully understood the product specifications and other terms and conditions specified by SAIL/SSP enclosed herewith. Signed in acceptance of all the terms and conditions listed in Annexures I and II Signature : Date : Name : Place : Designation : 22/25

23 Attested with Company Seal Contact details (incl contact ID) of the company seeking to participate as a Tenderer in Reverse Auction. Mjunction retains the right to extend or cancel or reschedule the reverse auction on any of the following reasons: Sl Circumstance Action 01 Auto Extension Of Bidding Time 02 Cancellation of event / bid ONLY in the event of any bid being placed in the last 3 minutes of the scheduled bidding time, the bidding time shall automatically extend by 3 minutes from each such bid. This Auto Extension mechanism remains activated until a continuous inactivity period (i.e. no bids being placed by any bidder) of 3 minutes is reached at which point the market shall close 1. The number of confirmed bidders is deemed insufficient to conduct the reverse auction. 2. On Advice of the Buyer 3. MJ on its own accord - in case of situations where it is felt that continuance of the auction proceedings is prejudicial to the smooth conduct and/or the integrity of the auction process. 4. Cancellation/ premature termination of the reverse auction with/ without a subsequent rerun of the auction on a mutually decided date between Client and MJ. 5. Cancellation of a wrong bid 6. Locking a bidder s account (suspension of operations in the account) 03 Poor Participation 1. Manual extension carried out if less than 10 bids received 2. Reserve / expected price not met. 3. It is determined that one or more bidders have submitted bids which are clearly below Cost 4. On the advice of the Buyer 04 Unable to access the module due to infrastructural problems - Internet Problems being reported by bidders 05 MJ server not able to connect to the Internet cloud 1. Manual extension carried out till connectivity restored or MJ will bid on behalf of bidder after obtaining suitable authentication. 2. The number of extensions and the time involved in each extension is on the judgment of the auction controller concerned. To the extent possible, all auctions will be extended until the problem is resolved/ internet connectivity of MJ machine improves. 23/25

24 06 Power failure/ Planned power shutdown in his area reported by an interested supplier Ability to extend depends upon time available, as also ability of MJ staff to connect to the MJ machine. MJ will bid on behalf of bidder after obtaining suitable authentication. (The party will inform his minimum price and will also inform his user id and password) Manual extension may be involved if the call is received just before closure, and MJ staff does not have sufficient time required to make a bid. At the request of the Client, Mjunction may permit bidding through a combination of online and offline means (offline means including phone/fax/ ). However in such event, Mjunction would not be responsible for any errors in transmission or entry of the information received in the offline medium. It must be expressly understood that such facilities if and when extended are only for the convenience of bidders and, while reasonable care and caution shall be taken by Mjunction, the ultimate responsibility for the same shall rest with the bidder/s. 24/25

25 ANNEXURE - VI Format for submitting last quoted prices (to be submitted on Company Letter Head of the Bidder after Reverse Auction ) To mjunction services limited Godrej Water Side, 3rd Floor, Tower 1, Plot V, Block DP, Sector V, Salt Lake, Kolkata , West Bengal, India Fax: Subject: Reg. Reverse Auction for Medium Carbon Silico Manganese Reference above, we hereby confirm our item-wise last quoted prices in the Reverse Auction held on.. For for Salem Steel Plant Items Last quoted price We also confirm that we will submit item wise price break-up, within 48 HOURS from the TIME OF Reverse Auction. Signature : Name : Designation : Date : 25/25