NO.KIOCL/MNG/CS/T/                                                                                                                                  5 th July 2006

CENTRAL STORES DEPARTMENT

TENDER ENQUIRY

Dear Sir,

Sub : 1) Transportation contract between Mangalore and Kudremukh.

2) Local transportation and Material handling contract at Mangalore

Sealed tenders in the enclosed form (Annexure I to IV) are invited for 1) Transportation contract between Mangalore & Kudremukh and 2) Local transportation and Material handling contract at Mangalore , effective from 01.08.2006 upto 30.07.2007. The terms and conditions of the contract (Annexure-IV) is enclosed herewith.

The quotations in two sealed covers, one containing Rate Bid (Annexure I to III) and the technical bid containing the terms and conditions (Annexure-VI) duly signed and rubber stamped in all the pages should be submitted to the Sr Manager (Stores), KIOCL, Panambur, Mangalore-575 010, on or before 1500.Hrs on 20/07/2006 . The sealed covers are to be superscribed as "Rate Bid" and "Commercial Bid". The rates should be furnished in the original documents furnished by KIOCL and quotations received in photocopies of annexure or letter heads will be summarily rejected.

For applying diesel variation clause during the operation of contract, it is advised to indicate the present base price of diesel with documentary evidence which may be obtained from M/s. Indian Oil Corporation . Mangalore, (i.e. the present rate of diesel taken into account for price bid) and enclosed along with the technical bid whils submitting the tender without fail.  

Presence of your representatives may be ensured without fail at 1530.Hrs on 20.07.2006, at the office of the Dy.General Manager (Stores) for witnessing the opening of the tenders.

One party should submit only one offer.

Scope of Work:

a). The work to be executed by the contractor shall be as per the details in the Schedule of Work (Annexure I to III) annexed to the tender.

b). There will be no guarantee that all the items included in the Schedule of work will be offered by KIOCL for operation to you during the currency of the Contract.

c). The Contractor shall not be entitled for any claim, Compensation on account of (b) above.

d) The interested parties have to quote for all the jobs as per the schedule of work (Annexure I to III) in the tender enquiry, otherwise their offers are liable to be rejected.

Validity of offer:

The offer should be valid for three months from the date of opening of the tender.

Schedule of Rates:

Please submit your offers in Annexure - I to III enclosed herewith.

Period of contract :

The period of contract shall be from 01.08.2006 to 30.07.2007 (One Year)

Earnest Money Deposit  

The offer should be accompanied by an Earnest Money Deposit (EMD) of Rs.10,000/- (Rupees Ten Thousand only) by means of a demand Draft payable to KIOCL, Panambur, Mangalore 575 010. The tender not accompanied with EMD will be rejected. Cheques will not be acceptable.

Security Deposit :

a). On the award of contract, the earnest money deposit shall be converted into security deposit and shall be refunded only on successful completion of the contract. You are not entitled to any interest on the Security Deposit.

b). Further, an amount towards Security Deposit (SD) would be deducted from the running bills of the party every month till the cumulative of such deductions amounts to Rs. Twenty thousand. Hence the total Security Deposit is equal to Rs.20,000/- including EMD  

Bills :

a). You shall furnish challans in a prescribed proforma for the day to day work carried out by you which should be got certified by authorised representatives of KIOCL on completion of the individual job. The original duly certified by authorised representatives of KIOCL should be submitted alongwith bills.

b). Bills in triplicate drawn on Kudremukh Iron Ore Company Limited., and duly pre-receipted shall be submitted to the Sr Manager(Stores), KIOCL, Mangalore- 575010 for arranging payments on a monthly basis. The bills shall be duly supported by the Challans/ Delivery Notes as mentioned above duly certified/acknowledged by authorised representatives of KIOCL.

c). Bills for Transportation between Mangalore and Kudremukh should be accompanied by receipted copies of Delivery Notes and GC Notes.

d) Bills for loading/unloading of materials at Mangalore Stores shall be duly attested/certified by the section-incharge indicating the quantity handled in terms of tonnage.

e) Bills for local transportation shall be duly certified by the section-incharge indicating total number of trips made in a month for local collection of materials.

f). Payment will be made within 7 days from the date of submission of bills, if the same are found in order.

However, delay in payment shall not be considered as a Breach of Contract.

g). Bills for work done will be processed for payment only on production of necessary documents to Personnel Department for having complied with the requirements.

h) Payment will be released by F&A Dept, Mangalore.

i)Bills are to be submitted calender month wise.  

Income Tax :

Income tax at the applicable rate will be deducted from the contractor's bills and deposited with Income Tax Department.

Service Tax

Service tax @12.24% is applicable and will be paid directly to Central Excise by KIOCL.

Escalation :  

a). No escalation except on fuel price shall be admissible on the rates accepted under the letter of acceptance which will remain firm during the pendency of the contract.

b). When the price increase or decrease is less than 5%, no change in freight shall be considered. In other words, price variation of 5% and above only shall be taken into reckoning for applying this formula.

c). The formula for increase or decrease in freight charges is as follows.

Change in freight charge = Distance in Km X increase or decrease in diesel price per Liter
----------------------------------------------------------------------------------------------------------------
Kms. Per Liter (Diesel Consumption)

Possession and inspection of vehicles and documents :

a). You should have in your possession the adequate number of trucks of carrying capacity of 9 MT each, for exclusively carrying out of work against this contract. KIOCL will be at liberty to inspect the vehicles at any time during the pendency of the contract, to reassure themselves as to their roadworthiness. You shall intimate KIOCL the place and time at which such inspection can be made, as soon as you receive a request from KIOCL to this effect.

b). You shall also furnish for KIOCL's inspection the RC books, Taxation cards, Permits, Insurance Certificates and other documents pertaining to the vehicles as and when called for by KIOCL.

c). The required number of vehicles and labour should be deployed on work within 24 hours of notice from KICL. In case of any failure in this regard, KIOCL reserves the right to have the work executed either departmentally or through other Agencies at your risk and cost.

KIOCL entry & exit :

a). CISF will issue Entry Pass to Contract Labour when the Contractor makes an application obtaining recommendation from the concerned Section/Department. On production of Entry pass only, CISF personnel will allow the Contractor's labour to enter the premises of the Company. No person below 18 years of age should be engaged. No female person will be deployed between 6.00PM t 6.00AM as per Mines Regulations/Factory act.

b). All vehicles owned/hired by the you and plying in the Company's premises should possess requisite pass issued by CISF. The CISF Authorities will issue Vehicle Pass only if Vehicle is insured and Road Tax is paid. Vehicles can ply only in the route approved by the Company/CISF.

c). The Vehicles carrying materials and reporting at Mangalore and Kudremukh will be checked by CISF personnel for relevant documents of the vehicle such as Registration Book, Tax Card, Fitness Certificate, Driver License. In case of non-availability of any of these valid documents trucks are not likely to be permitted inside the premises and you may have to submit a letter stating the reasons for the nonavailability of the documents.

Payment of wages, recovery towards provident fund & maintenance of records:  

a). Contractor should intimate Personnel Department of KIOCL the date, time and venue for payment of wages to workmen. On such information being made available, a representative of Personnel Department will witness the payment.

b). Steps should be taken to recover from the wages of the workmen employed towards Provident Fund Contribution. The contribution payable by Contractor together with the amount recovered from wages of workmen should be deposited in the State Bank of India , Panambur against the P.F. Code Number allotted to the Contractor. In case, a contractor has not been allotted a P.F Code Number, steps should be taken to open a savings bank account with State Bank of India , Panambur and deposit P.F. Contribution till such time the P.F. Code is allotted by the Regional Provident Fund Commissioner, Bangalore/Mangalore.

c). Steps should be taken to recover towards Family Pension Scheme and deposit in the above manner.

d). Steps should also be taken to deposit necessary contribution payable by contractor under the Employees Deposit Linked Insurance.  

License for engaging 20 or more men :

Whenever a Contractor is required to engage 20 or more workmen against single or multiple work orders, steps will have to be taken to obtain the necessary license and produce the same to Personnel Department. A License already obtained should be renewed. Company will provide necessary guidance to the contractor in obtaining/renewing the License. In the absence of such a license, Contractor will not be issued with Gate Pass for more than 19 workers and work can not be commenced till such time the license is obtained.

Insurance policy under Workmen Compensation Act :

Steps should be taken to obtain Insurance Policy for meeting claims under the Workmen Compensation Act. For injuries sustained while on duty the contract labour will be given free medical treatment to the extent it is available at the Company's First Aid Center. Where the patient has to be referred to other hospitals for Specialist Consultation/ Specialised treatment, the Company can only make necessary arrangements for the same. The Contractor has to meet the expenditure incurred in providing specialist Consultation/ Treatment.

Authorised Representatives :

The Contractor should have their authorised representative positioned at Kudremukh and Mangalore with telephone facilities who will be available round the clock.

General Terms and Conditions of Transportation Contract :

This Contract shall also be governed by the "KIOCL General Terms and Conditions of Transportation Contract", a copy of which is enclosed herewith.

Thanking You,
Yours faithfully,
For Kudremukh Iron Ore Co. Ltd.,

(R.Parthiban)
Sr .Mgr.(Stores)

Encl. : (1). Schedule of work (Annexure I to III)
(2). General Terms and Conditions of Transportation Contract(Annexure-IVI)

This Contract has been read and accepted In its entirety.

Signature with Seal

SCHEDULE OF WORK

ANNEXURE - I

TRANSPORTATION OF MATERIALS IN TRUCKS FROM MANGALORE TO KUDREMUKH AND VICE-VERSA

Note :

1. The trucks to be deployed should have minimum carrying capacity of 9 MTs.

2. Transit time - After loading of materials, the truck should reach the destination latest by next working day.

3. Rates shall be quoted excluding Service tax @12.24% which will be pais by KIOCL.

4. In and around means within radius of 25KM from KIOCL Mangalore

SCHEDULE OF WORK

ANNEXURE - II

LOADING AND UNLOADING OF MATERIALS AT MANGALORE

SCHEDULE OF WORK

ANNEXURE -III

i) TRANSPORTATION OF MATERIALS IN TRUCKS FROM IN & AROUND(AT THE RADIUS OF 25KM FROM KIOCL) MANGALORE TO STORES, KIOCL, PANAMBUR, MANGALORE & VICE-VERSA

Note :

1. The trucks to be deployed should have minimum carrying capacity of 9 MTs.

2. Transit time - After loading of materials, the truck should reach the destination on the same day

3. Material shall be transported or collected from in and around Mangalore at the radius of 25KM with center point as KIOCL, Panambur, Mangalore.

4. The minimum number of labours required for loading/unloading shall be FOUR.

ANNEXURE - IV
 

GENERAL TERMS AND CONDITIONS OF TRANSPORTATION CONTRACT :

1. QUANTUM OF WORK :

a). The Quantity authorised for transportation shall be liable to increase or decrease at the discretion of KIOCL.

b). KIOCL reserves the right to increase the quantity or extend the period of the contract as the case may be.

c). KIOCL also reserves the right to conclude parallel contract with more than one agency.
 

2. DEFAULT BY THE CONTRACTOR :

Upon failure of the contractor to comply with any of the instructions/ terms and conditions to carry out work in accordance with the provisions of this contract, KIOCL shall have the right to terminate the entire contract or portion thereof in default, as the case may be by giving 24 Hours notice in writing and to have the defaulted portion of the contract executed at the risk and cost of the contractor. KIOCL will not be liable to pay any damage or any other claim by the contractor for any expected profit or interest on the value of the uncompleted items of works and the contractor have no action in damages or otherwise against KIOCL for such termination.

3. CONTRACTORS RESPONSIBILITIES :

a) The placement of trucks should be effected by the Contractor within 2 to 4 hours on receiving the requirement for the trucks over phone/verbal communication by KIOCL Stores representatives.

b). Once the delivery order/authorisation in favour of contractor is handed over, the contractor shall be responsible to collect, transport and deliver the material in good condition. All damages or losses shall be to the account of the contractor. Also the consequential losses/ damages suffered by KIOCL shall be recovered from the contractor.

c). KIOCL shall have the right to recover the cost of materials so short delivered or undelivered as the case may be, from the contractor.

d). On completion of loading, the contractor shall immediately inform by telephone/ telegram/fax any other means of KIOCL the despatch details. Thereafter the contractor shall arrange to submit to KIOCL within 48 Hours of lifting of materials, one copy each of delivery challan and GC notes.

e). No transshipment shall be allowed en route.

f). The Contractor shall be responsible for taking delivery of the consignment against authorised documents from the supplier as well as obtaining proper receipt from the consignee.

g). The contractor shall ensure that all materials are loaded properly by following the KIOCL's instructions in this regard. Materials for lashing, packing and protection against nature for the safe carriage of goods shall be provided by the contractor at his cost.

h). The Contractor shall be responsible for contacting the supplier and coordinating the movement of the material. KIOCL shall not be liable for any claim towards detention charges either at the supplier's premises or at consignee's premises.

4. ESCALATION :

a). No escalation except on fuel price shall be admissible on the rates accepted under the letter of acceptance which will remain firm during the pendency of the contract.

b). When the price increase or decrease is less than 5%, no change in freight shall be considered. In other words, price variation of 5% and above only shall be taken into reckoning for applying this formula.

c). The formula for price increase or decrease per trip in freight charges is as follows.

Change in freight charge = Distance in Km X increase or decrease in diesel price per Liter
----------------------------------------------------------------------------------------------------------------
Kms. Per Liter (Diesel Consumption)  

d) As regards to escalation of freight charges, the contract provided formulae and based on which transport contractor can claim the escalation charge with documentary evidence and payment can be settled accordingly.  

e) The diesel price has to be obtained from the nearest terminal of M/s. IOC which will be the basis for all calculation purposes of freight escalation

5. SECURITY DEPOSIT :

a). Earnest money deposited Rs.10,000/- along with the tender shall be converted into Security Deposit in the case of successful tenderer. Further an amount towards Security Deposit (SD) would be deducted from the running bills of the party every month till the cumulative of such deductions amounts to Rs.Fourty five thousand. Hence the Total security Deposit is equal to Rs.45,000/- including EMD.

b). KIOCL will have unreserved lien on this security deposit till the satisfactory completion of the work. KIOCL will be at liberty to deduct and appropriate from the Security Deposit such recoveries as may be deemed fit and other dues from the contractor under the contract and the amount by which security deposit is reduced by such appropriation will be made good by further deduction from his subsequent bills to the extent to restore the security deposit value to the original amount as per clause 5(a) above.

c). On due and satisfactory performance of all the obligations under the contract including completion of work in all respects, the security deposit will be released by KIOCL, subject to recoveries, deductions and retentions there from as provided under the contract. No interest shall be payable on such amounts retained as security deposit.  

6. PAYMENT :

a). KIOCL shall pay the contractor for such work as is performed by the contractor as acceptable in accordance with the provisions of the contract.

b). Delay in payment will not be considered as a breach of the contract, KIOCL will have the right to review/ reject and/or request for the clarification/revision of the bills submitted by the contractor. No interest shall be payable by KIOCL for any delay in payment of the bills.

c). KIOCL shall in accordance with the Indian income tax/ other laws deduct from payments to be made to the contractor as advance tax such or all amounts at sources as may be required for remitting to appropriate authorities. KIOCL shall issue suitable certificate for such deduction to the contractor.

d). Payment made pursuant to the agreement by KIOCL will not be construed as the waiver of any breach thereof by the contractor or in acceptance of defective work or of items of work not in conformity with the terms and conditions of this Agreement.  

7. RETURN TRIP:  

If the same truck engaged by KIOCL is utilized to transport material from the unloading point back to the originating point within eight working hours of reporting time for unloading excluding the delay attributable to the transporter without releasing of the same truck, such trip shall be treated as the return trip. In case the same truck is engaged again at the original point, it shall be treated as a fresh trip.  

8. SETTLEMENT OF BILLS :

Payment will be made on production of Bills to be submitted by the contractor supported by two copies of GC Notes clearly acknowledging in one copy at least receipt of materials in good condition at the destination herein above mentioned by the consignee. The bills should be submitted within one month of taking delivery of material in triplicate to KIOCL for scrutiny and payment.

  9. SAFETY :

a). The safety of all persons employed by the contractor and the subcontractor on the work will be the sole responsibility of the contractor and contractor shall defend, indemnify and save harmless KIOCL from/and against any actions, claims, damages, cost resulting from death or injuries sustained by these persons.

b). The contractor will take all reasonable measures and precautions at all times to prevent injuries to or death of any of the contractors employees or any other person. Such measures and precautions will include but will not limited to, all safeguards and warnings necessary to protect workmen and other against any conditions that could be dangerous and to prevent accidents of any kind.

10. LIQUIDATED DAMAGES :  

Should contractor fail to affect delivery at the destination indicated within the time stipulated by KIOCL, KIOCL shall be entitled to recover/ retain as agreed liquidated damages a sum equivalent to 1% of the contract value for the portion of the consignment which the contractor fails to deliver within the stipulated time, for each day or for part thereof for which the material may be delayed, subject to a maximum of 10% of the contract value.

11. INDEMNITY :

a). The contractor will defend, indemnify and save harmless KIOCL officers, labours and Employees from and against any and all expenses and costs (including court costs and attorney's fee) damages for liabilities of any kind or nature, whatsoever which may arise out of or result from any claims, demands, causes of action and/or judgements stated or obtained by or threatened to be instituted by the contractors and his employees other contractors and third party or any person or persons including but not limited to property damage or death or injury of any person resulting from any defects, faults, shortages, errors, omissions, neglect whether deliberate or accidental or willful misconduct of contractor or his agents, servants or sub-contractors. These obligations will survive the completion, cancellation or termination of the LOI.

b). Should KIOCL deem itself insecure as to the ability of the contractor to so indemnify, KIOCL may demand that the contractor promptly provide reasonable assurance in form and substance satisfactory to KIOCL of contractor's ability to comply with the provisions of this article. The contractor's failure to provide such satisfactory assurance will be sufficient ground for termination of the LOI. KIOCL have the decisions to the satisfaction any such assurance which will be final and binding.

12. INSPECTIONS OF VEHICLES AND DOCUMENTS :  

a). KIOCL will be at liberty to inspect the contractor's vehicles at any time during the pendency of the contract to reassure themselves as to their roadworthiness. The contractor shall intimate KIOCL the place and time at which such an inspection can be made, as soon as the contractor receives and requests from KIOCL to this effect.

b). The contractor will also furnish KIOCL's verification, the RC Books, Taxation cards, Permits, Insurance Certificates and other documents pertaining to the vehicles as and when called for by KIOCL.

13. LABOUR LAWS :  

The contractor will comply with any and all laws, ordinances, regulations and decisions of court (which shall be deemed to be part of this agreement) concerning the health, sanitary arrangement, wages, welfare, safety and employment o any and all of the contractor workers upon the work or any portion thereof and will exclusively bear the consequences or failure to comply there with. The contractor will indemnify and held KIOCL harmless from any claims, fines or penalties which may be made against us as a result of the contractor's failure to fulfil these obligations.

The contractor will not employ children below the age stipulated under the law.  

14. SETTLEMENT OF DISPUTES :

a). All disputes or differences arising between the parties out of or in connection with this agreement at any time whether during the progress of work or after the completion or whether before or after the determination of this agreement shall be referred to the arbitration of Sole Arbitrator to be nominated by the General Manager(Materials) of Kudremukh Iron Ore Company Limited in accordance with the arbitration act 1940.

b). The venue of the arbitration shall be Bangalore , India .

Sub : Transportation and Material Handling Contract at Mangalore, Kudremukh and Bangalore .

The present Work Order KIOCL/MNG/CS/T/368/E1 dated 23.02.2006 on M/s. Delta Transport Corporation, M'lore, expires on 30.06.2006.

The Contract covers the following works, which requires renewal from 01.07.2006.

1. Transportation of materials in trucks from Mangalore to Kudremukh and Vice - Versa.

2. Transportation of materials including Gas Cylinders in trucks from Kudremukh to Bangalore and Vice - Versa.

3.Loading and Unloading of materials at Kudremukh ,Mangalore and Bangalore .

4.Handling of Burnt Lime at Kudremukh.

It is proposed to issue the Limited Tender Enquiries to the following Eight Transporters for better availability of vehicles to meet any eventualities and emergencies.

The draft Tender Enquiry Papers with General Terms and Conditions of Transportation Contract is placed opposite in the file at Page No. 1 to .

It is proposed to issue a Limited Tender Enquiry to the above mentioned Eight Parties with an Estimated Contract Value of Rs.15 Lakhs .(Rupees Fifteen Lakhs Only).

Submitted for approval & finance concurrence please.

(C.V.Naik)
Dy.Manager(Stores)
DGM (Stores)