OIL & NATURAL GAS CORPORATION LTD.

CORPORATE - MATERIALS MANAGEMENT

Policy Monitoring & Control (P.M.C.) Section

MATERIALS MANAGEMENT MANUAL

(Corrections incorporated upto 5th October 2012)

TEL BHAVAN
DEHRADUN - 248 003
 INDEX…………………
Brief Description Para No. Page No.

INTRODUCTION 1-5 1

CHAPTER-1
PURCHASE PROCEDURE
* Dependent Factors 7 3
* Classification of materials 8 3
- Proprietary Materials 8.2(a) 3
- Non-Proprietary Materials 8.2(b) 3
- Stock items 8.2(c) 3
- Non Stock items 8.2(d) 4
- Capital Items 8.2(e) 4
- Stores & Spares 8.2(f) 4

* Functions of Purchase Department 9 8

* Procedure for placing indent on Materials
Management 10 9
- Variation in quantity 10(i) 9
- Equipment/OEM wise Indents for 10(ii) 9
Stores & Spares
- Indication of Source of Supply 10(iii) 9
- Expenditure Sanction 10(iv) 10
- Specifications 10(v) 10
- Indent delivery date(s) and urgency 10(vi) 11
- Assessment of Requirement 10(vii) 11
- Co-ordination with MM 10(viii) 12
- Item-wise Estimated cost in Indent 10(ix) 12
- Minor variation in specification 10(x) 12
- Indication of Standard Sizes in Indents 10(xi) 12
- Date of Indent 10(xii) 12
- Recoupment of Stock items 10(xiii)-(xvi) 13
- Ad-hoc purchases 10(xvii) 13
- Budget Allocation 10(xviii)-(xix) 13
- Grouping of items 10(xx) 14
- Separate indents for items independent 10(xxi) 14
in nature
- Material code and consumption schedule 10(xxii) 14
- Indents for stores & spares through RCMLO 10(xxiii) 15
* Centralised/ de-centralised purchases 11 16
* Registration of firms, for indigenous purchase 12.1 18
on limited tender
PURCHASE METHODS 13 23
* Purchase through DGS&D 14 23
* Open tenders 15 24
* Limited tenders 16 25
* Procedure for purchases upto Rs. 5 lakhs. 16.4
* Purchase on single tender 17 26
- Purchase of non-proprietary items 17.1 26
- Purchase of stand by equipment and 17.2 26
accessories
- Purchase of Proprietary Articles (PAC) 17.3 27
- Hiring of services of Domain Experts 17.4 30
* Petty purchase/hand quotations 18 30
- Petty purchases 18.1 30
- Purchase against hand quotations 18.2 30
- Purchases from State emporium/ 18.2.3 31
Super Bazar/Govt.Deptt/undertakings
- Inspection of non-consumable items 18.2.4 31
* Purchase through Annual Rate Contract 19 31
* Purchase through Board of officers 20 32
* Emergency purchase 21 33
- Emergency purchase by user deptt 21.5 35
* Two Bid System 22 37
* Short-Listing of Bidders 23 39
* Finalisation of Bid Evaluation Criteria (BEC) 24 39
and floating of tenders .

INVITATION OF TENDERS
* Coordination and bulking of Demands for
purpose of inviting tenders 25 41
* Enquiry register 26 41
* Tender Sets to be kept ready and tender 27 41
intimation to be sent to prospective bidders
* Submission of tender for publication in press 28 42
* Time to be allowed to bidders to quote 29-29.3 42
* Validity period 30 42
* Notice inviting Quotations/tenders (NIT) 31 43
* Number of copies of offers to be called 32 44
from bidders
* Variation in quantity after invitation of tender 33 44
* Sale of bidding document to firms with whom 34 45
business has been banned/suspended.
* Tender fee 35 45
* Purchase of bidding documents by Agents 36 46
in India
* Cancellation of tenders-Refund of tender fee 37 46
* Exemption from payment of tender fee 38 46
* Intimation regarding invitation of tender to 39 47
trade Commissions/Consulates/Representatives
of foreign Govts.
* Tender fee 40 48
* Offers without having prescribed bidding 41 49
document of ONGC
* Sale of bidding document 42 49
* Issue of bidding document 43 50
* Issue of bidding document after closing date 44 51
* Receipt of tenders 45 52
* Tender Box 46 52
* Nomination of tender receiving / opening 47 53
officer(s)
* Accounting of tenders 48 53
* Opening of tenders 49 55
* Numbering of Tenders/disclosure of 50-51 55
prices/reading out the rates of tenders
* Opening of tenders in public 52 56
* E-mail/fax/telex/telegraphic offers 53 57
* Cancellation/Re-invitation of tenders 54 57
* Extension of tender opening/closing date 55 58
* Clauses in tenders/ Supply orders 56 59
- Warranty & Guarantee 56.1. 59
- Warranty clause 56.1.2 59
- Penalty/Liquidated Damages/Cancellation 56 .2 59
clause
- Liquidated damage/Failure & Termination 56.3 60
clause
- Procurement of goods 56.3.1 60
- Fall clause 56.4 61
- Inspection and rejection of material by 56.5 63
consignee(s)
- Subletting and Assignment 56.6 63
- Earlier Delivery 56.7 63
- Pilot approval 56.9 64
- Bulk inspection 56.10 65
- E-Mail/Telegraphic/Fax offers 56.11 65
- Arbitration clause 56.12 65
- Submission of tender samples after 56.13 66
opening of tenders
- Scale of Rebate 56.14 66
- Catalogue and manual in case of new buys 56.15 66
- General conditions 56.16 66
* Earnest money and Security Deposit 57 67
- Earnest money/Bid bond/Bid Security 57.1 67
- Security Deposit/Performance Bank 57.2 68
Guarantee/Contract Security
- Security Deposit/Contract Security / 57-3 70
Performance Bond against development
orders/rate contract under import
Substitution programme
 - Release of Security Deposit/Performance 57.4 70
Bond/Contract Security
- Release of Earnest Money/Bid Security/ 57.5 70
Bid bond/Security Deposit/Contract
security/PBG
- Invoking of Bank Guarantee 57.6 71
(MM/53/2010 dated 17.05.2010)
* Provisions as per various Govt./Statutory 58 72
guidelines
- Price preference to domestic bidders in ICB 58.2 72
- Supplies of material and equipments 58.2.1 72
- Methodology for calculation of price 58.2.1.3 72
preference
- Granting of price preference 58.2.1.4 72
- Turnkey projects 58.2.2 73
- Oil field services 58.2.3 73
- Price/purchase preference to the products 58.3 73
of Small Scale Sector
- Purchase of ‘Lead Acid Batteries’ with 58.4
provision for ‘buy-back’ of the used batteries
by the supplier.
* Comparative statement 59 74
* Clarification from bidders after tender opening 60 77
- Correspondence with Suppliers 61 77
by indentors
- Technical comments on offers 62 78
- Level for technical comments on offers 62.4 78
* Formation of tender committee and its 63 79
monetary limits
* Single item/group of similar items 64 79
* Convening of tender committee 65 80
* Brief for and level of tender committee 66 80
* Constitution of Tender committee 66.1
* Evaluation of bids by Tender Committee 67 81
and preparation of tender committee proceedings
* Acceptance of Recommendations of T.C. 68 81
* Proposals to Executives Purchase 69 82
Committee (EPC)
* Minutes of discussion of Executive Purchase 70 83
Committee
* Consideration of offers 71 84
* Purchase of Machinery and Equipment 72 84
* Purchase of capital items and spares therefore 73 84
* Late tenders 74 85
* Splitting of tenders/Supply orders 75 86
* Insufficient competition and Reasonability 76 88
of Rates
- Placement of order when one offers 76.2 88
is received
- Certification of urgency 76.3
- Reasonability of rates 76.4
* Negotiation 77 89
* Powers for various activities 78 91
- Competent Authority for approving 78.1 91
various activities
- Open tenders where TC is required 78.3(a) 91
- Limited tender where TC is required 78.3(b) 92
- Single tender on PAC tender 78.3(c) 93
where TC is required
- Single tender on Nomination basis 78.3(c)(i)
where TC is required
- Board Purchase 78.3(c) (ii)
- Acceptance of TC recommendations when 78.3(d) 93
majority views are not acceptable
- Acceptance of offer other than lowest 78.3(f) 93
technically acceptable offer (where TC
not held)
* Powers for placing educational/Development 79 93
order under Import Substitution
* Miscellaneous powers of officers of MM 80 95
- Powers for sanctioning freight by road 80.1
for materials carried
- Powers for sanctioning freight by air 80.2
where air freight is cheaper than freight
by alternative mode of transportation
- Powers for sanctioning handling and 80.3
transportation charges at Railway Station,
Stores Yards and Ware-houses
- Powers for Expenditure sanction 80.4
and purchase of stationery
* Power for purchase of proprietary Articles 81 97
* Powers for purchase by negotiation 82 98
* Signing of supply orders/contracts by 83 98
officers
* Exercising of powers of MM discipline by 84 99
officers designated in Mechanical/Electrical/
Civil etc.
* Observance of laid down procedure 85 100
* Relaxation in conditions of tenders 86 100
- Relaxation in standard terms and 86.3 100
condition of supply order for purchases
form OEM/Manufacturer of proprietary items
* Post contract issues 87 101
* Acceptance of material in deviation to 88 101
specified specifications
* Marginal adjustment in supply orders 89 102
Placing/Termination of supply orders/Contracts 90 102
- Placing of supply orders/Contracts 90.1 102
- Termination of contract/supply order 90.2 107
* Distribution of copies of supply orders 91 107
* Follow up of supply orders 92 108
* Service contracts 93 108
* Extension of delivery / mobilization / 94 109
completion date
* Extension in Delivery period and liquidated 95 110
damages in case of Development orders
* Levy of liquidated damages for delays in supply 96 111
* Review of earlier decision 97 112
* Copies of letter authorizing extension of 98 113
Delivery/Mobilization/Completion date
* Procurement of mud chemicals 99 114
- Schedule for placing indent/supply orders 99.1 114
for mud chemicals and handling thereof
- Classification of chemicals 99.2 114
- Commodity chemicals 99.2(i) 114
- Speciality chemicals 99.2(ii) 114
- Procurement method 99.3 115
- Commodity chemicals 99.3.1 115
- Payment 99.3.5 116
- Speciality chemicals 99.4 117
- Information to be provided by Bidders 99.4.6 117
alongwith their offers
- Sampling, bonding and debonding of 99.6 118
bulk material
- Rejection of Bulk sample 99.7 119
- Debonding and despatch of mud chemicals 99.8 119
- Random Sampling 99.9 120
- Purchase from manufacturers/public 99.10 120
undertakings
- Earnest money/Security Deposit 99.11 120
- Substandard product 99.12 120
- Third party inspection for accepting bulk 99.13 121
supplies of mud chemicals from abroad
- Procurement of Barytes and CMC 99.14 121
* Vendor Rating 100 124
* Securing Adjustment-follow up of claims 101 124
* Amount of compensation 102 124
* Retirement of Documents from bank 103 124
* Kardex showing progress of action on indents 104 124
* Period within which indents to be processed 105 125
* Complaints/Representation Consideration 106 125
 CHAPTER-2
* Maintenance of Kardex 107 136
* Maintenance of Buffer Stock 108 137
* Fixation of maximum/minimum limits 109 137
- Indigenous items 109.2 138
- Imported items 109.3 139
* Review of Minimum/Maximum limits 111 140
* Preparation of recoupment requisition 112 140

CHAPTER-3
* Project Stores 113 142

CHAPTER-4
CLEARING AND FORWARDING PROCEDURE
* C&F section Responsibility 114 143
* Transit documents-Receipt of 115 143
* Arrival of materials 116 144
* Damages/discrepancy in Receipt of materials 117 145
* Raising of discrepancy report 118 146
- Discrepancies of trivial value 118.3 147
- Stock Discrepancy 118.4 147
- Stock Verification Discrepancy 118.5 147
* Despatch of materials 119 147
* Despatch convoy note/despatch register 120 148
* Escorting of material 121 149

CHAPTER-5
INSPECTION AND ACCOUNTING OF MATERIAL
* Inspection of material 122 150
* Inspection after expiry of contract delivery period 123 151
- Third party inspection for accepting bulk 123.3 152
supplies of mud chemicals form abroad
* Receipt of Material 124 152
* Packing material-accounting of 125 153
* Preparation of Goods Receipt Voucher(GRV) 126 153
* Binning of materials 127 154
* Stocking of materials 128 155
* Scrutiny of material Requisition/Issue note 129 156
* Material requisition/Issue Voucher-Preparation of 130 157
* Disposal of indent-issue return Voucher 131 158
- Guidelines for stock holder 131.1-131.5 158
* Issue of material-timings 132 159
* Issue of material to out station 133 160
* Items received against adhoc demand(s) 134 160
* Recording of capital/stores and spares items 135 160
- Stores & spares 135.1 160
- Capital items 135.2 161
* Return of material 136 162
* Replenishment of spares 137 163
* Transfer of material-preparation of 138 163
Materials Transfer Note(STR-19)(SA03)(MTN)
* Submission of vouchers 139 164
* Cancelled or missing vouchers 140 165
* Central register of ledger/Stock cards 141 165
and auditable documents
* Kardex cards-index register 142 166
* Kardex cards maintenance of 143 166
* Kardex cards-numbering of 144 166
* Kardex cards-opening of 145 167
* Closing of Kardex cards 146 167
* Kardex cards reconciliation of 147 167
* Kardex cards-posting of/preparation 148 169
of adjustment vouchers
* Duties of numerical ledger poster 149 170
* Filling up of various formats 150 170
for computerised inventory control
* Stock status report 151 170
* Slow/Fast moving items 152 170

CHAPTER-6
* Packing Section 153 172
* Packing of material 154 172

CHAPTER-7
* Control office 155 174
* Drill site material 156 174
* Disposal of unserviceable material 157 174
* Issue hours of material 158 174
* Payments of Bills 159 175
- Foreign Bidders/Indian Bidders 159.1 175
* Railway credit notes 160 177

CHAPTER-8
COMPUTERISED INVENTORY CONTROL
* Annexure of order schedule 161 178
* Instruction for preparing Annexure of 161(i)- 178-244
order schedules 161(iii)(h)
 CHAPTER-9
*e-PROCUREMENT 162
*Reverse auction 162.10
- Types of Auction 162.10.4
- Price Preference 162.10.5
- Purchase Preference 162.10.6
- Features of the Online event 162.10.10
- Implementation of e-procurement 162.11
& Reverse Auction
- Bid return procedure 162.12
- Familiarization/training of vendors 162.13

CHAPTER-10
PROCUREMENT OF PREMIUM BITS ON CONSIGNMENT BASIS

* Procurement of premium bits on 163

consignment basis
- Payment 163.14

FORMATS
STR-1 Goods Receipt Voucher 245
STR-2 Goods Receipt Control Register 246
STR-3 Consignment Inward Register 247
STR-4 Stores Requisition/Issue Note 248
STR-4A Stores Return Note 252
STR-5 Proforma for Maintenance of Records of 253
Capital/Stores & Spares
STR-6 Indent Form for Purchase 254
STR-6A Non-availability Certificate in case 258
of Emergency Purchase
STR-7 Kardex Card 259
STR-8 Gate Pass 262
STR-9 Stock Account Register 263
STR-10 Stock Taking Sheet-Capital Items 264
STR-10A Stock Taking Sheet-Stores & Spares 265
STR-11 Quotation Form 266
STR-12 Convoy Note Register 271
STR-13 Comparative Statement 272
STR-14 Railway Receipt Register 274
STR-15 Discrepancy Report 275
STR-16 Bill/Purchase Register 276
STR-17 Packing List 277
STR-18 Despatch Register 278
STR-19 Material Transfer Note 279
STR-20 Proforma for Explanation of Discrepant Items 280
STR-21 Material Adjustment Voucher/Loss Statement 281
STR-22 Register to watch finalisation of discrepancies 282
STR-23 Provisional Loss Statement 283
STR-24 Final Loss Statement 284
STR-25 Register of Serial Numbers of Stock Sheets 285
STR-26 Register of Losses 286
STR-27 Daily Wagons Register 287
STR-28 Despatch Note 288
STR-29 Convoy Note 289
STR-30 Despatch Convoy Note 290
STR-31 Issue Control Register 291
STR-32 MT Note Register 292
STR-35 Emergency Purchase Inspection Requisition 293
STR-36 Opening Advice 294
STR-37 Closing Advice 295
STR-38 Fortnightly Completion Certificate for months 296
STR-39 Port Arrival and Forwarding Note 297
STR-40 Purchase Order Upto Rs. 1,00,000/- 298
STR-41 Vendor Performance Card 303

_________________
 INTRODUCTION

1.1 Work in the Oil & Natural Gas Corporation Ltd. (ONGC) has been
organised on the basis of functional Business Groups with commercial
working relationship among these groups.

1.2 The Business Groups are:

a) Exploration
b) Drilling
c) Operations
d) Technical

1.3 Director concerned of the above Business Groups assume effective

charge of all functional aspects of Materials Management.

2.1 The procurement and stocking of materials is decentralised to the respective

Business Groups at Headquarters and Regions. Every Business Group has
a structured Materials Management set up with suitable structure at the
Regions and Headquarters. The Headquarters' Materials Management set
up with the concerned Director is responsible for the following:-

i) Procurement and related work including Steering Committee

cases, Executive Procurement Committee cases. However policy
matters including liaison with the Govt. will be done by the Materials set
up under Director (T).

ii) Providing superintendence to the Materials set up at the Regions

under the concerned Business Group with regard to different
functions of Materials Management for example Inventory
Control, Disposal, Codification, Standardisation of specifications,
Computerized MIS and Stock Verification etc.

iii) Bulking of all high value indigenous and critical items to be

procured centrally for taking maximum advantage in price discount.
Such exercise would be done by the Headquarters Materials set up
for all Regions under the group.

2.2 The above functions are to be discharged by personnel of Materials

Management discipline who will be so allocated to each Business Group
both at Headquarters and at the bases. However, the procurement of all
indigenous materials except as mentioned above is decentralised with their
respective Business Group.
(MM/56/2010 dated 11.10.2010)

3.1 Various powers indicated in this manual, as per authorities delegated under
the provisions of BDP, shall stand automatically updated in accordance with the
revisions / amendments carried out to the respective provisions of BDP (from time to
time), unless any other specific instruction is issued subsequently by Chief MM-
Services/PMC with respect to the provisions of such revisions in BDP.

3.2 Materials procurement powers are to be exercised only by exception by

functional executives other than Materials Management executives by special
nomination by the Competent Authority as a stop gap arrangement till such time
Materials Management executives are in position.

4. The Materials Management Support Groups will function strictly within

the policy guidelines and such administrative norms as may be prescribed
by Director (Technical).

5. Provisions of Materials Management Manual are duly approved by Executive

Committee/steering Committee and ratified by the ONGC Board. Therefore,
any deviation from the prescribed policy guidelines or norms on Materials
Management will require reference to Director(Technical) through the
Director Incharge of the Business Group for approval / ratification of
Competent Authority wherever considered necessary.
 CHAPTER – 1

CLASSIFICATION OF STORES
CHAPTER-1

PURCHASE PROCEDURE
6. Aim of the Materials Management Organisation is to procure, preserve
and deliver Materials in proper time to ensure smooth progress of the
project works and administrative machinery.

7. DEPENDANT FACTORS

7.1 Every effort will be made by the Materials Management Organisation to

meet the needs of the Engineers and the Scientists with regard to the
Materials. But the success of the aspiration of the Materials
Management depends very much on the proper planning and timely
intimation by the concerned Engineers / Scientists to the Materials
Management. It is, therefore, essential that these aspects are kept in view
to ensure timely procurement of materials/services.

8. CLASSIFICATION OF MATERIALS

8.1. The purchase can be made with advantage on the results of classification of
material and stock levels. It is, therefore essential that either of these points is
given treatment before passing on to the purchase procedure.

8.2 For procurement/accounting, the materials may be classified into following

categories:-

a) Proprietary Materials: Proprietary materials are those which are

manufactured by the makers of the main plants themselves such as
spare parts for Willys' Jeeps.

b) Non-Proprietary Materials: Non-Proprietary materials are those

which are manufactured by many firms such as chemicals and
laboratory equipments.

c) Stock Items: Fast moving items of regular consumption as also

spares required for running repairs and periodical overhaul of
machinery and equipments are considered `Stock Items'.

The senior most Materials Management officer not below E-1

(M.M.Officer) will have full powers to declare stores and spares as `Stock
Items'.

(Authority: Item No. G.1.1. of "The Delegated Powers, 1994")

 d) Non Stock Items: Non-stock items are those which are
to be purchased against specific requirements of the indenting
departments.

e) Capital Items:

i) All items costing Rs.5, 000/- or more and with a life of more than one
year are categorised as “Capital Items".

ii) Items costing less than Rs.5,000/- which have a life of more than one
year and can be regarded as complete units in themselves (e.g. small
compressors, pumps, electrical motors, welding sets, electrical testing
instruments etc.) are also to be categorised as "Capital Items".

(MM/56/2010 dated 11.10.2010)

Chief - MM Services will have full powers with the concurrence of Finance to
declare an item costing less than Rs.5,000/- as "capital item".

(Authority: Item no. MM1 of BDP-2009)

f) Stores & Spares: All the items, which cost less than Rs.5, 000/- and
have a life of less than one year are to be treated as "Stores &
Spares".

8.3 The Inventories in ONGC have been broadly classified into two separate
groups e.g. "Stores" and "Spares". These two groups have been further sub-
divided into the following classes:-

Sl. Class Description EDP Class Alpha Remarks

No. Code Code

1 2 3 4 5

STORES

1. Drill Pipes 01 DP
2. Casing Pipes 02 CP
3. Other Pipes and Pipe fittings 03 OP
4. Drill bits 04 DB
5. Other Drilling Stores (all other 06 DS
sub-groups under DT class
excluding those stated above)
6. Electrical material i.e. Electrical 07 EG
fittings, cables, insulating
materials etc. including
Electrical instruments.
7. Building Materials and other 08 BM
Civil Engineering Materials
including Timber

8. Oil Well Cement 09 OC

9. Chemicals including Mud 10 CM
Chemicals
10. P.O.L. e.g. Oil, Grease and 11 OL
Lubricating material etc.
11. Metals e.g. Bounds, Bars, 12 ML
Plates etc.
12. General Tools on Stock 13 GT
13. Misc. Stores i.e. drawings 14 OT
materials, bolts, nuts, rope,
screw, tents and tarpaulins etc
14. Tubing, Pipes and Fittings 15 PT
15. Well Head and X-Mas Trees 16 WX

SPARES

16. Spares for turbo drills and 05 TD

connected items
17. Spares parts for drilling 21 DL
equipment viz. Rigs and Diesel
Engine, Mud Pumps, Air
compressors etc.
i) Diesel Engine
ii) Slush Pump
iii) Draw Works
iv) Crown Block, Travelling Block,
Swivel and Rotary table.
v) Other Spares
18. Spare Parts for
i)Production Equipment 22 PD
ii) Other Spares
19. Spare parts for cementing unit 23 CM
20. Spares parts for Geological 24 GL
Equipment (i.e. Equipment
exclusively used for Geological
works).
21. Spare parts for Geophysical 25 GP
Equipment (i.e. Equipment
exclusively used for Geophysical
works)
22. Spare parts for imported 26 TP
Transport Equipment
23. Spare parts for Indigenous 27 TI
Transport Equipment
24. Spare parts for Electrical Plant 28 EP
and Equipment
25. Spare parts for Civil Engg. Plant 29 CE
and Equipment
26. Spare parts for Workshop Plant, 30 PW
Machinery and Equipment

27. Other spares i.e. spares for other 31 PM

equipment not covered above
such as spares for instruments
etc.

28. Spare parts for BOP elevators 32 BE

etc.
29. Spares for Computer Hardware 33 CS

30. Spares for Boats and Floating 34 VS

Vessels

31. Spares for Radar Communication 35 RC

equipment

32. Spares for Production Platforms 36 PF

(Well process/supply)
INDENTING FOR PROCUREMENT
9. FUNCTIONS OF PURCHASE DEPARTMENT

9.1 The vital functions of Purchase Department are:

(i) What quantity to buy

(ii) When to buy

(iii) From whom to buy

(iv) At what price to buy

(v) What quality to buy

9.2 The Purchase Department while making any purchase should see that :

i) All the purchases are made for the properly authorised requisitions
clarifying the purpose for which these are required;

ii) All the materials requisitioned are duly ordered out from the right
source after full enquiries;

iii) The right type and quality of the materials are bought from the cheapest
source;

iv) only the right quantities are purchased in right time;

v) deliveries of all the materials are received by stipulated time;

vi) supplier's bills are paid promptly to maintain good relations with the trade;

vii) adjustments on claims due to shortage or due to any discrepancy are

secured; and

(MM/62/2011 dated 21.07.2011)

viii) Pre-bid-conference (Wherever applicable):

(a) Pre-bid conference shall not be held in each and every case.
However, Work Center may hold pre-bid conference in any case based on
the need/justification for the same with the prior approval of concerned L-1
officer for cases where CPA is L-1 or below and of Director concerned for
cases beyond the powers of concerned L-1 officer. Proposal for holding
pre-bid conference should be initiated preferably by the Indentor at the
indenting stage. However, if a need for holding pre-bid conference is felt by
the TC in its meeting held before invitation of the tender, then TC can also
propose for holding of the pre-bid conference.

(b) Wherever it is decided to hold pre-bid conference, in NIT, date for

closure of sale of bidding documents should be specified, providing
sufficient time for response. It should also be indicated in NIT/bidding
documents that all bidders who buy bidding documents are invited to attend
the pre-bid conference. As soon as the sale of documents is closed, pre-bid
conference is to be convened (the date and venue of pre-bid conference
should be clearly indicated in the NIT and the bidding document). In the NIT
and bidding document as well as during the pre-bid conference, bidders
should be advised that ONGC expects the bidders to comply with the
tender specifications/conditions which have been frozen after pre-bid
conference, and hence non-conforming bids will be rejected straightaway.
The indenting officer from the User department (who has framed/signed the
specifications) is to chair pre-bid conference(s) with competent
representative from concerned technical department (like E&C) and TC. It
should be impressed upon the bidders to depute (for attending the pre-bid
conference) representatives of status equivalent to the authority chairing
the conference.

(c) The issues raised by the prospective bidders during the pre-bid
conference will be examined in detail by the Tender Committee. If due to
the points/doubts raised by the prospective bidders, tender specifications or
any specific term(s), condition(s) which is not a part of “Standard Terms and
Conditions of the Tender” needs to be modified, then the same will be
considered for modification. However, if there are any points/issues, which
have been raised by prospective bidders during the pre-bid conference but
have not been resolved, then a second pre-bid conference will be held
which will be attended by all the Tender Committee Members. In this pre-
bid conference, Tender Committee Members would again try to clarify the
doubts raised by the prospective bidders, with a view to ensure adequate
participation.

(d) MM department in association with the concerned technical

department will prepare minutes of the pre-bid conference and obtain
approval of the officer who chaired the pre-bid conference. Thereafter, in
case no modifications are required in the BEC/specifications/tender
conditions, the bidder would be asked to submit their bids on due date and
time and sufficient time would be given to the bidders to submit their bids.
However, if, as a sequel to the pre-bid conference, modifications are
required in the BEC and other tender conditions (excluding commercial
conditions standardised by PMC), TC shall submit its recommendations for
prior approval of the competent purchase authority (CPA) by providing
detailed justification for agreeing to such modification(s). In this regard,
Director concerned shall have full powers including in EPC level cases,
provided, such changes are not in conflict with the existing policy/
procedure/ PMC instructions. However, in case of change of specifications
as a sequel to pre-bid conference, necessary approval shall be obtained as
per para 10(v)-b.

(e) After obtaining such approval, these modifications should be made

and communicated (through fastest mode of communication like fax) prior
 to submission of bids with sufficient time to all the bidders to submit their
bids; no change will be allowed thereafter. In other words, pre-bid
conference(s) will be used to freeze various specifications, terms and
conditions of the tender before opening of bids.

(f) If as a sequel to the pre-bid conference, if an important tender

condition regarding specifications/scope of work/delivery period/mobilization
period/completion period requires major modification, then with a view to
have transparency in the bidding process, sale of tender documents can be
re-opened. In that case, TC should deliberate the case and submit their
recommendations through CPA/concerned L-I executive to the concerned
Director and Director-I/C (MM) for re-opening the sale of tender. The sale
would be re-opened for a period of 15 days and for this purpose,
advertisement would have to given in the press and information would have
to be posted on the ONGC tender web-site also. In such situation, pre-bid
conference would not be held again. The dates of re-opening of sale,
closing of sale, re-scheduled tender closing/opening would be clearly
specified.

10. PROCEDURE FOR PLACING INDENT ON MATERIALS MANAGEMENT

i) Variation in quantity: Indents for annual requirement will be

formulated carefully after proper scrutiny and based on latest approved
plan. Normally, no variation in quantity should take place but if the
same becomes unavoidable, it would be limited to + 20%. Indents for
procurement of machinery / equipment / stores / spares will be sent to
concerned Materials Management on prescribed format (STR-6)
preferably on annual requirement basis. Piecemeal demands will be
avoided.

ii) Equipment / OEM-wise indents for stores & spares: Indents for
procurement of stores and spares will be raised equipment / OEM-wise.

iii) Indication of source of supply in Indent: The indentors, while

sending indent to concerned Materials Management, will invariably
indicate minimum three number of parties who are likely to quote
for supply of items as per designed specifications. Where likely sources
of supply are anticipated to be lesser than three, the reasons for not
relaxing the specifications or for not splitting the work / reducing the
quantity will be brought to the notice of higher authority(ies), as indicated
below, for approval before sending indent to concerned Materials
management

a) For cases upto the - Head of concerned

value of Rs. 1.00 Business Group not
crore below E-7 level

b) For cases between - Concerned Regional Director

 Rs.1.00 crore and in case of Regions,concerned
upto Rs.4.00 crores GGM/GM in case of Institutes
and Director concerned in
case of Hqrs.

c) For cases above Rs. - Director concerned.

4.00 crores.

(iv) Expenditure Sanction:

The indent must accompany the expenditure sanction. It will be ensured

that total expenditure sanction as well as unit-wise / group-wise
expenditure sanction is indicated in the indent.

(v) Specifications :

a) The indent must indicate clear and detailed specifications,

drawings and samples, wherever necessary, so that there is no
ambiguity left for the tenderers to quote for correct
materials. The specifications should be drawn up in general terms
without quoting reference to any particular firm or taking it as model
specifications as far as possible.

(MM/45/2009 dated 14.10.2009)

b) Specifications (which should be as general and broad based as possible

to generate competition) once given alongwith the indent would be
considered as final and no revision later on / back flow for rechecking
would be entertained.

Any change in specification (before tender is floated) vis-à-vis earlier

contract/tender (in case of re-tendering) will need the approval of the
competent authority as defined at para 78.1-(1)(i), with full justification.

Once pre-bid conference is held in a case, specifications should be

frozen and after that no change in specifications will be permitted.

In case change of specifications becomes absolutely necessary as a

result to pre-bid conference, then same would require approval of the
competent authority as defined at para 78.1-(1)(i), with full justification.

Where no pre-bid conference takes place, no change in specifications is

admissible except as provided herein. If the indentor seeks revision of
specification with prior approval of concerned Director (recording reasons
for modifications of specifications) and conveys the same to MM
department before opening of bids [technical bids in case of two-bid
system], it should be notified to all prospective bidders well in time.

As far as possible in respect of turnkey projects and service contracts,

 efforts should be made to frame the specifications on CRINE concept
giving functional specifications. In such tender, the practice of floating
RFP (Request for Proposals and thereafter, holding of pre-bid conference
to firm up the specifications) should also be considered. In such case,
since specifications would be firmed up after interacting with bidders, no
pre-bid conference needs to be held after bid invitation.

In case, specifications have been standardized within ONGC centrally,

approval of such central standardizing authority will be necessary for
making changes in the specifications.

c) The indentors before sending specifications must make up their minds

about the purchase of type of items required and its specifications.
No team should be sent after the tenders have already been invited
to study the equipments. Such study, if necessary, be completed
before placing the indent.

d) The indentors should not ask for proprietary materials or draw up

specifications that would result in proprietary procurement, except
in cases, where proprietary procurement is unavoidable.
Specifications should normally be drawn in such a manner that there is
a wide field of suppliers.

(MM/45/2009 dated 14.10.2009)

e) Whenever specifications have not been standardized, specifications will

be prepared by the concerned User / Indenting department. Such
specifications shall need the approval of the competent authority as
defined at para 78.1-(1)(i). Wherever specifications have been
standardized and approved at the level of concerned Director / EC, no
further approval will be required.

(vi) Indent Delivery Date(s) and Urgency:

The indent must specify the time by which the material is required.
In Indent, the definite delivery date and the place at which the
materials are to be delivered or dispatched, will be indicated. The
use of such terms as 'IMMEDIATE', 'AS EARLY AS
POSSIBLE', 'URGENTLY REQUIRED', 'PRIORITY', as substitutes for the
actual delivery dates are to be avoided and the delivery dates always
indicated in red ink in the following manner:-

a) by_________________________________________(date) (meaning
thereby that the whole quantity is required by the date).

b) __________(Quantity by____________(date) remainder

from___________ (months) to ___________ (months) (meaning
that so much is required by a particular date and the balance is
required by monthly quota).
 c) From __________(month) to ______________ (month) (meaning that
equal monthly quotas may be delivered as appropriate).

(vii) Assessment of Requirement:

The indentor will be responsible to assess the requirement and to

ensure that there is no over provisioning.
(viii) Co-ordination with Materials Management:

Before preparing indent, the indenting section should coordinate

with the Materials Management concerned. This will help to make
specifications more realistic and would enable the indentor to ensure
that there is no stock in hand which can be used, after adaptation (if
necessary).

(ix) Item-wise Estimated Cost In Indent:

The indentor should give the estimated cost item-wise in the indent. If
the cost of the item at the time of placing the contract is more than the
estimated cost, but the price difference is Rs. 100/- or less, no reference will
be made to the indentor. If the price difference is more than Rs. 100/- then
upto 10% of the estimated cost or Rs. 1,000/-, whichever is less, no
reference need to be made to the indentor. In all other cases, a
reference to the indentor will be necessary to confirm that there is budget
provision and that full quantity of materials is still required.

(For Cost estimates, in case of OEM/OES cases, para 76.4.2(a) may be referred)

(x) Minor Variation in Specification:

Where minor variations in specifications are suggested by the Purchase

Section and are acceptable to the indentor and the cost is within the limits
stated above, the indent need not be referred again to the Finance or to
the Project Manager.

(xi) Indication of Standard Sizes in Indent:

As far as possible, indents should be for standard sizes. The Purchase

Section may refer back to the indentor informing the latter of the standard
sizes available, before purchasing non-standard sizes.

(xii) Date of Indent:

If the above points are not complied with by the indentor, that indent will not
be treated as a firm indent, till all points are clarified. The date on which all
the points or irregularities in indent are settled that date will be considered
the date of indent. The time of completing of supply will be considered from
that date.
(xiii) Recoupment of Stock Items:

In the case of Stock items, the maximum & minimum and re-order levels
will be fixed scientifically and according to the instructions issued by
Director (Technical) in consultation with Finance keeping in view past
consumption, rates, lead time and safety margins etc. Once these levels
have been fixed, the Materials Management (Stock) can take recoupment
action without any further reference to Finance. However, the Materials
Management (Stock) will request the associated Finance to earmark
funds before entering into any purchase commitment.

(xiv) The Materials Management (Stock) will intimate its requirements to the
purchase section through recoupment demands.

(xv) Wherever maximum/minimum and re-order levels have not been fixed in
the manner stated above, the indenting section will continue to assess its
requirement and to place its indent on the purchase section after obtaining
financial concurrence.

(xvi) The review of levels in respect of Stock Items will be carried out once a
year. However, if circumstances, such as change in the programme of
operation or change in norms, necessitate it, the review will be carried out
earlier.

(xvii) Ad-Hoc Purchases:

As far as possible, adhoc purchases will be avoided. Items, for which there
is repeated emergency purchase, will be added to the list of Stock Items,
which would be progressively increased and the list of Non-Stock items
correspondingly reduced.

(xviii) Budget Allocation:

Quarterly statement of budget allocation and utilisation would be forwarded

by Associated Finance to the concerned Materials Management / Project
Head in respect of Stock and Non-Stock Items.

(xix) When a budget is drawn up on a functional basis and gives the break-up of
the provision of materials, itemwise indent upto Rs.5,000/-within the
budgetary provision, need not be referred to Finance again for concurrence.
However, in the absence of budget on functional basis, prior financial
concurrence will be obtained by the indentor before placing indent on the
purchase section, irrespective of the amount involved. The sanction from
the competent authority will accompany all indents.

(xx) Grouping of Items :

 Whenever the purchase involves items to be purchased in groups, the same
grouping should be intimated alongwith indent by the indentor.

(xxi) Separate indent for items independent in nature

It is necessary that sieving of items is properly done at the indent stage

itself so that items independent in nature are indented separately.

(xxii) Materials Code and Consumption Schedule:

It will be ensured that material code and likely consumption schedule of

Stores and Spares is indicated in the purchase indent failing which the
indent will not be accepted. In case of new buys, provision will be made in
tender document and supply order to effect that the supplier will send
catalogue and manual of relevant item(s) to Inventory Control Cell under
intimation to order placing authority within two months from the date of the
receipt of supply order (or as desired by the order placing authority depending
upon the delivery period).

In case of new buys and where permanent codes have not been allotted
Regional Corporate Materials and Logistics Organisation (RCMLO) will be
consulted who will act as Coordinating Agency of the Project / Region and
will interact with Inventory Control Cell to get the permanent code. Where the
material code is not communicated by Inventory Control Cell within 7 days
from the date of reference to them, temporary code will be allotted by the
RCMLO. Indent can be raised by the Indentor with such allotted temporary
code with the prior approval of concerned Regional Director. Permanent
code number obtained by RCMLO will thereafter be notified to concerned
Indentor and Purchase Section.

(xxiii) Indent For Stores & Spares Through RCMLO:

All Indents for procurement of stores and spares will be routed through
RCMLO at Regions / Projects and through CMLO in the Hqrs. who will
scrutinize the same with reference to stock in hand, material in pipe line
and likely consumption schedule. This exercise should not take more than
five days.
CENTRALISATION / DECENTRALISATION
OF PURCHASES
11. CENTRALISED / DE-CENTRALISED PURCHASES

11.1 In Drilling Business Group, purchase functions of the following items would
be handled as under:-

Sl. No. Item Base

1. Barytes Chennai

2. CMC Dehradun

3. Oil Well Cement and Cement additives Mumbai

4. Bits

Indigenous Dehradun
Imported Dehradun

5. Blow Out Preventors and accrssories Dehradun

6. Rig (purchase and service contracts)

Onland Dehradun
Offshore Mumbai

7. Spares and assemblies for on-land rigs Dehradun

8. Spares and assemblies for offshore rigs Mumbai / Chennai

9. Well Heads
Onland Dehradun
Offshore Mumbai

10. Imported mud chemicals and mud additives Dehradun

11. Casings 30” and 20” required for offshore Mumbai

operations exclusively

12. Others - whether indigenous or imported for on-land Dehradun

and off-shore operations

(Authority : 1/20/85-MD dt. 12.9.85 as amended)

11.2 Procurement functions in respect of other Business Groups will be handled

as per instructions issued from time to time.
11.3 Procurement of Building materials

(MM/56/2010 dated 11.10.2010)

i) Various types of building materials can be purchased and supply orders

placed by Civil Engineers upto the Powers delegated to them vide para No. EW8
of BDP-2009, subject to following the normal purchase procedure.

ii) All such purchase shall be against sanctioned estimates for which
administrative approval and expenditure sanction of Competent Authority exist.

(iii) The Engineers would be empowered to purchase all types of building

materials for civil works except cement and steel which will be purchased by them
only in emergency. They can however, request the Materials Management
irrespective of the above powers to make purchase for them in cases where
purchase can be deferred and long range advance planning is possible.

iv) The word "Building materials" includes all type of materials required to carry
out work including all tools, plants implements, etc.

(Authority: Item no. EW8 of BDP-2009)

REGISTRATION / EMPANELMENT OF FIRMS
12.1 REGISTRATION OF FIRMS FOR INDIGENOUS PURCHASES
ON LIMITED TENDER BASIS

12.1.1 For the purpose of sending enquiries for indigenous purchases against
limited tenders to be invited in the normal limit of the value of limited tender,
registration of firms will be done by Head of Materials Management(TBG) at
Regions / Projects / Hqrs keeping in view the requirement of the work
centre. Firms willing to register at more than one work centre, will require
to get themselves registered with all such work centres. The firm(s) will be
registered for each group of items separately for which they will need to send
separate application alongwith application fee as indicated in para 12.1.3.
The firm(s) will be registered for a period of three years. In Registration
Certificate also it will be made clear that the facility for exemption from
payment of earnest money / furnishing of bid bond will be available in normal
limited tenders only.

12.1.2 The following norms will be adopted for registration of firm(s) on

tender-wise basis:-

i) Income Tax Clearance Certificate.

ii) Sales Tax Registration number both State and Central.

iii) 50% of annual turn over of the item(s) / group of item(s) for
which the party requires registration, duly certified by a
Chartered Accountant.

12.1.3 Subject to provision in para 12.1.7, a non-refundable application fee of

Rs.50.00 will be charged from each party for registration for each group of
item(s). In addition, a non-refundable registration fee of Rs.50/- for each
group of item(s) will also be charged before issuing Registration Certificate if
the party concerned meets norms specified in para 12.1.2 above.

12.1.4 While confirming registration number of the firm, it will clearly be advised
that they should apply for renewal of registration at least 3 months prior to
expiration of the validity of registration. Renewal of registration will be done
on the basis of past satisfactory performance.

12.1.5 A non-refundable fee of Rs.50/- will also be charged for renewal of

registration of the firm after every three years.

12.1.6 In case a firm already registered with a work centre, wants to get itself
registered with other work centre(s) for same item(s) then a fresh
verification of Income Tax Clearance, Sales Tax Registration and annual
turnover will not be necessary and the party will be registered for the
same monetary limit and period upto which its registration with initial work
centre is valid.
12.1.7 Firms registered with DGS&D / NSIC will be treated as registered firms of
ONGC for the item(s) they are registered with DGS&D / NSIC for sending
limited tender enquiries provided a formal request alongwith non-
refundable registration fee of Rs.50.00 for each group of item(s) and proof of
such registration from such firms has been received.

12.1.8 No application fee will be charged from such firms.

12.1.9 It will be ensured that enquiries are sent to all firms registered for the item(s)
required to be purchased. In case the number of registered firms is large,
enquiries may be sent by rotation to ensure healthy competition and allowing
all firms an opportunity to compete.

12.1.10 Any case for de-registration of firms shall require approval of an officer
at E-7 level (General Manager).

(MM/33/2008 dated 29.04.2008)

Entire provisions under para 12.2 (i.e. 12.2.1 to 12.2.7) deleted.

PURCHASE METHODS
 PURCHASE METHODS
(MM/56/2010 dated 11.10.2010)

13. Purchase will be made through any of the following methods:-

i) Purchase through Directorate General of Supplies and Disposals (DGS&D)

ii) Open tenders
iii) Limited tenders
iv) Single tender
v) Petty purchases / Hand quotations.
vi) Annual Rate Contracts
vii) Board of Officers

14. PURCHASE THROUGH DGS&D

14.1 There are three ways of purchase of materials through the DGS&D:-

i) By placing indent on DGS&D who on his side invites the tenders from
the dealers on his approved list.

ii) Through DGS&D Rate / Running Contract: In this case also the
indents are to be placed on DGS&D who places order on the firms
with whom they have concluded the rate / running contracts, such as
petroleum products.

iii) Through Rate Contract concluded by the DGS&D: In this case no

indent is to be placed on DGS&D but the officer of the Organisation
who is appointed by the DGS&D as "Direct Demanding Officer", can
place order direct with the firm on Rate Contracts concluded by the
DGS&D.

14.2 Full advantage of the DGS&D Rate / Running Contract should be taken as
far as possible when such contract exists and the delivery period suits our
requirement. No separate tenders need be invited when the delivery period
stipulated in the DGS&D Rate / Running Contracts is acceptable. However,
where the delivery period of any such contract is not suitable, the Purchase
Officer may place a direct supply order on the DGS&D Rate contractors on
DGS&D rates or lower rates and where it is not possible to obtain supply
of an item either by operating on the DGS&D Rate Contract or by placing a
direct supply order on the DGS&D Rate Contract Holders because the
delivery period does not suit our requirement, the Purchase Officer may
resort to the other methods of purchase outlined in para 13 above even
though the items are available against DGS&D Rate/Running Contracts.

14.3 All other items not covered by the Rate / Running Contracts will be
arranged by the Materials Management by inviting tenders.
15. OPEN TENDERS
(MM/33/2008 dated 29.04.2008)

15.1 Except for situations covered under provisions at para 15.3, when the value of
the tender is more than Rs. 25.00 lakhs, open tenders will be invited. Open
tenders will be advertised through the press.

Tender inviting Section shall forward the copy of NIT to Corporate

Communications department for publishing NITs in the newspapers in concise
format. The number and type of newspapers in which NIT is to be published
shall be decided by the Corporate Communication Deptt. Further, the detailed
NIT alongwith complete Tender Documents will also be uploaded on
ONGC’s tender website.

15.2 Open tender bidding documents are to be issued to the bidders on

application against prescribed tender fee. At least a month’s time should be
allowed for submission of bids, after the date of publication of
advertisement. In emergent cases, however, it may be curtailed to 21
days.

15.3 Invitation of open tenders will not be necessary in the following cases:-

i) Purchases against DGS&D Rate Contract; and

ii) Where the sources of supplies are known and limited

(MM/46/2009 dated 04.11.2009)

15.4 Invitation of Limited Tender, in cases where open tender is to be invited as

per value of the tender, should be restricted to exceptional cases, for which
approval should be obtained from CPA not below Level-1 executive for cases
valuing upto their purchase powers under MP-4(b), after recording valid
reasons. However, concerned Director shall have full powers, including for
the cases falling under the powers of EPC.

Procedure for Limited Tender, as stipulated in para 16 below, should be

followed in such cases also.
.
15.5 In case, Limited Tenders are proposed to be invited (as against open tender
to be invited based on the value of the tender), then the bidders should be
identified and short-listed by the indentor, who should also determine and
certify that short-listed bidders meet the pre-qualification criteria (technical)
advised as per the instructions in vogue. Such short-listing of the bidders and
the PQC are to be approved by the competent authority, as per the provisions
contained in para-78.1. Thereafter, prequalification criteria (technical) need
not be incorporated in the tender..
16. LIMITED TENDERS

(MM/63/2011 dated 29.09.2011)

16.1 For purchases of the value of Rs. 25.00 lakhs or less, the tender need not
be advertised through the press.

In accordance with the instructions issued from time to time, all limited tenders
of value above 5.00 lakhs are to be posted on ONGC’s tender website, along
with the pre-qualification criteria which has been used for selecting the
vendors. After framing the pre-qualification criteria, indentor would forward the
name of those vendors to the MM Department who meet the pre-qualification
criteria. Besides issuance of the tender enquiry to vendors who meet the pre-
qualification criteria, MM Department would also publish the tender enquiry on
the website along with the pre-qualification criteria. After publication of the
limited tender enquiry on the web site, tender enquiry can also be issued to
those vendors who request ONGC for issuance of the tender enquiry and who
meet the pre-qualification criteria. Such requests are to be entertained within
10 days of publication of the tender enquiry on the web site. Indenting
Department would have to certify that such vendors meet the pre-qualification
criteria and based on this certification, enquiry would be issued by MM
Department.

The names and addresses of vendors to whom the Limited Tender enquiry
has been issued should also be posted on the website alongwith the PQC.

For limited tenders upto Rs 5 lakhs, the purchase officer may send enquiries
to vendors known to ONGC. The enquiries will also be sent to the registered
vendors as defined in para 12.1 under the heading “Registration of
Vendors." In-charge MM at each work center shall make necessary
arrangements for registration of vendors as per para 12.1, keeping in view of
the requirements of the work center.

(MM/46/2009 dated 04.11.2009)

(Note deleted) NOTE: Minimum three quotations must be received before

tender is finalised.

16.2 (MM /6/2002 dated 23.04.02)

Enquiries should be sent to as many firms as possible to ensure competition.

In cases where the number of known/registered firms dealing with the
materials under purchase is large, enquiries may be limited as given below.
In such cases, firms will be sent enquiries in rotation ensuring healthy
competition and allowing all firms an opportunity to compete over a period of
time. The list of selected suppliers, to whom enquiries have to be sent, will
be approved by the competent purchase authority. The minimum number of
inquiries to be floated will be as under:-
 For tenders upto Rs.1,00,000/- 5 enquiries

For tenders from Rs.1,00,001/-to Rs.5,00,000/- 7 “

For tenders from Rs.5,00,001/- to Rs.10,00,,000/- 8 "

For tenders from Rs.10,00,001 to Rs.25,00,000/- 10 "

(MM/8/2003 dated 02.04.03)

(MM/33/2008 dated 29.04.2008_

16.3 For tenders valuing less than or equal to Rs.5 Lakhs, when the number of
vendors known to / registered with ONGC is less than the required, the
enquiry may be sent to all such vendors after obtaining the approval of an
officer one level higher than the Competent Purchase Authority.

For tenders valuing above Rs.5 Lakhs, if the number of vendors who meet
the PQC are less than the required, approval of an officer one level higher
than the sanctioning authority shall be obtained by the indenting department
and conveyed to MM department alongwith the indent. However, concerned
Director will have full powers to approve such cases, including EPC level
cases.

16.4 Procedure for purchases upto Rs 5 lakh:

(MM/33/2008 dated 29.04.2008)

The dealing officer will float limited tender enquiries [as per specified format of
STR 11], as per para 16.1 & 16.2 above.

After receipt of offers within the closing time and date, the offers shall be
opened by the nominated opening officers from MM and F&A. After opening,
the offers will be handed over to the concerned dealing officer who shall
tabulate the data from the offers in the comparative statement, to be prepared
within one working day. In all cases where technical evaluation is involved,
the duplicate copy of the offers are to be referred within one working day to
the indentor for technical comments. The indentor [not below E-1] shall furnish
the technical comments immediately, which in no case shall exceed two
working days. Subject to provisions of Para 78.3 (f) of this Manual, the
approval of a Purchase Authority [not below E-4(MM)] will be obtained before
placing order (within 7 working days from opening of bids) as per Annexure A
of STR 40, without holding Tender Committee).

17. PURCHASE ON SINGLE TENDER

17.1 Purchase of non-proprietary items

(MM/56/2010 dated 11.10.2010)

Purchase of non-proprietary items, on single tender basis, will be resorted to only in

the situations of emergencies like flood, fire, civil disturbances, war, cyclones, blow
out and operational break down, as per provisions under para 21. Detailed
justification for resorting to emergency / operational break down should be recorded
at the time of processing the proposal for approval of competent authority as per
powers delegated under item No. F5 and ME1 of BDP-2009.

(MM/56/2010 dated 11.10.2010)

17.2 Purchase of proprietary items:

17.2.1. An item is “Proprietary”, if that item (Hardware/equipment/Software/stores) is

made/developed and marketed by a particular firm having the exclusive right to
manufacture and sell it. Such proprietary Article/ Item can be procured, if the
indenter ensures and certifies that only specific make and model are acceptable and
no other make and model is acceptable as substitute on technical reasons.
Purchase of proprietary items should be made if it is absolutely essential.

17.2.2 Declaration of an item as proprietary will be done with the approval of

competent authority, as per powers delegated under item No. R1 and MM2 of BDP-
2009. However, before submitting the proposal to competent authority for approval,
the same will be examined by the In-charges of MM and Finance disciplines of the
respective work center. Where there is an alternative to suggest, In-charges of
Finance / MM disciplines will advise the indentor to examine and consider the
alternative.

17.2.3 . Accordingly, for such purchases of proprietary items from single source,
Indenter shall provide a ‘Proprietary Article Certificate’ (PAC) alongwith indent, as
per following format:

PROPRIETARY ARTICLE CERTIFICATE (PAC)

(i) The required item(s) (i.e.…………………………*) is/are manufactured only by

M/s................................................................. and no other make is acceptable as
substitute for technical reasons. (*Wherever specific model / brand is required,
the same should also be specified).

(ii) Approval of competent authority, as per item ………..** of BDP-2009 (as

amended from time to time) has been obtained for purchasing the required
item(s) as a proprietary article. (** indicate relevant BDP item).

(iii) The In-charges of MM and Finance disciplines of the work centers have
examined and cleared the proposal for purchasing the required item(s) as a
proprietary article.

(Signature)
Name and Designation……………..
Date:
Place:

[Note: The certificate should be signed by the authority competent to approve the
Technical specifications (as per para 78.1-1(i)), in accordance with the value of the
purchase].

17.2.4 Features of the model / version of the products are regularly upgraded by
the manufacturers. Similarly, new products and new technologies are being
introduced very frequently and the market conditions are likely to vary at different
point of time. Therefore, the approval for purchasing an item as proprietary article
(PAC) should be obtained separately on each occasion of its purchase.

17.2.5 The purchase of proprietary articles against the Proprietary Article Certificate
should be made either from Original Equipment Manufacturer or from Authorised
Dealers/Distributors/ Stockists of Original Equipment Manufacturer (and not through
a third party).

17.2.6 It must be ensured that such items purchased against PAC are consumed
within one year from the date of receipt of the material.

17.3 Purchase of stand-by equipment & accessories and spares from OEM:

17.3.1 Stand by equipment and accessories which form part of the main equipment,
and are required for ready replacement and which can not be replaced with other
makes on technical grounds can be purchased from OEM or authorized
Dealers/Distributors/ Stockists of OEM, as proprietary article without PAC provided
Indenter certifies that no other make or model can be used as replacement on
technical ground and competent authority approves the same in consultation with
MM. In such cases, approval of competent authority as per powers delegated under
item No. R1 and MM2 of BDP-2009 shall be obtained.

17.3.2 Spares for vehicles / machineries / tools / equipment, which are manufactured
only by particular firms and for which no substitutes are available are to be treated
as proprietary articles. No PAC would be necessary for procurement of such
items. For carrying out such purchases, approval of competent authority as per
powers delegated under item No. R1 and MM2 of BDP-2009, shall be obtained.
However, before submitting the proposal to competent authority for approval, the
same will be examined by the In-charge of MM discipline of the respective work
center. These items are to be procured from Original Equipment Manufacturers /
Authorised Dealers/Distributors/ Stockists of Original Equipment Manufacturers, as
per procedure laid down in para 17.3.3 below.

(MM/51/2010 dated 29.01.2010)

17.3.3 For procurement of spares of proprietary / non-proprietary nature, the

following procedure will be followed:-

i) In the case of proprietary spares, the OEMs should be asked to intimate

 details of all their Authorised Dealers/Distributors/ stockists valid for a
period of one year from the date of intimation, for supply to India. OEM
should also be requested to provide a confirmation that they do not have
any other authorised Dealers / Distributors / Stockists other than the
ones intimated by them i.e. OEM themselves.

The OEM will also be requested to notify to ONGC if any change occurs
in Authorised Dealers/Distributors/ stockists during the period of one
year. Enquiries should be sent to all the Authorised Dealers/Distributors/
stockists so intimated by OEM, including the OEM.

In such types of procurement from OEM/their authorized Dealers/

Distributors/ Stockists etc., even though enquiry would be sent to more
than one, but this shall not be categorized as limited tender and various
provisions of limited tender like framing of PQC, loading on web site etc.
shall not be applicable. The competent purchase authority for OEM
purchases as defined in the BDP shall be applicable in such cases also.

ii) When the OEM confirms of not having any Authorised

Dealers/Distributors/stockists, enquiry may be sent to OEM only.

iii) In case OEM does not respond to our request for sending us details of
Authorised Dealers/Distributors/ stockists, enquiry may be sent to OEM
only..

iv) Besides OEM and their Authorised Dealers/Distributors/ stockists, OES

(Original Equipment Supplier), can also be considered as an authorised
source of supply, if they supply directly and not further through any other
agency

(MM/33/2008 dated 29.04.2008)

v) For procurement of consumables conforming to standard specifications

like API etc. (such as slush pump consumables) and standard spares
like bearings, belts and chains etc. of general and detailed
specifications, open tenders may be invited as a number of
manufacturers produce such items. However, for purchases of these
items upto Rs. 25.00 lakhs limited tenders will be invited.

(MM Amendment no. MM/23/2006 dated 28.04.2006)

17.4 Hiring of services of Domain Experts:

Domain Experts are individuals with established reputation for specified

knowledge and experience in specific areas of Science and Technology. It is
neither feasible nor desirable to engage such individuals through tenders.
Therefore,
 i) Each Director shall constitute a Technical Team to identify
Domain Experts in relevant disciplines,
ii) The identified Domain Experts shall be contacted by the Director
for acceptance of retainership followed by empanelment, and
iii) The concerned Director may request the services of particular
Domain Expert for specific studies and tests.

18. PETTY PURCHASES/ HAND QUOTATIONS

18.1 Petty Purchases:

(MM/64/2012 dated 31.01.2012)

18.1. Purchase upto Rs. 10,000.00 (annual cap as per Item No. RG2 of BDP) at a
time may be made without formal enquiries or without obtaining hand
quotations by User Departments themselves.

(Authority: Item RG2 of BDP-2009

18.1.2 A statement of petty purchases made by the User Departments will be

sent to the Materials Management concerned at the end of each month so
that taking into account the frequency of such purchases these may be
considered for inclusion in the list of stock items to avoid further piecemeal
purchases.

(MM/56/2010 dated 11.10.2010)

18.1.3 No GRV will be raised for petty purchases of consumable items upto Rs.
10,000.00 and such transactions need not be routed through concerned
Materials Management. Also no covering supply order need be issued for
petty purchases of consumable items upto Rs. Rs. 10,000.00.

(Authority: Item RG2 of BDP-2009)

GRV shall also not be required for purchase of materials for special events like
Seminars, Conferences, training, meetings and sports events provided the items are
to be consumed during the same event and need not to be kept in stock .

(Ref. Note. 17.16(iv) of Appendix 1 of BDP-2009)

18.1.4 Inspection of Non-Consumable Items :

(MM/56/2010 dated 11.10.2010)

No inspection through Quality Assurance Department for purchases of

non-consumable items upto Rs.10,000.00 will be necessary. But,
regularisation of transaction in such cases will be done against submission of
pre-receipted indent alongwith complete details of the purchased item (i.e.
 copy of bill etc) and acceptance of material by the indentor, to concerned
Materials Management (stock).

The requirement should be applicable only in cases GRVs are created for
value upto Rs. 10,000/-, say for Capital items, for other cases as even GRVs
are not created, the item shall not be inventorised at all and booked directly to
expenditure head.

18.2 Purchase against Hand Quotations

(MM/64/2012 dated 31.01.2012)

18.2.1 Purchase above Rs. 10,000 but upto Rs. 50,000.00 (annual cap as per Item
No. RG2 of BDP) may be made either by User Department or by the Purchase
Department by obtaining at least three hand quotations. A list of prominent and
reliable local firms will be maintained by all concerned. Hand quotations will be
collected on rotation basis whenever there is scope for rotation. A certificate will
be given by the Officer making such purchase that hand quotations were obtained
on rotation basis. The names and addresses of the firms from whom quotations
are obtained will be given in the certificate. Where the number of dealers is limited
i.e. less than six, rotation system need not apply.

(Authority: Item RG2 of BDP-2009)

18.2.2 User departments will not go for direct purchases over Rs. 50,000.00 at a
time barring operational emergencies involving breakdown in operations. In
operational emergencies the User Department may make direct purchases as per
powers delegated in the Book of Delegated Powers.

18.2.3 Purchase from State Emporium / Super Bazar / Govt. Deptt /

Undertakings

Whenever items are available in State Emporium / Super Bazar / State

Govt. or Central Govt. Undertakings, purchases are to be made from them
only and in those cases, the requirement of obtaining three hand
quotations will not be necessary.

19. PURCHASE THROUGH ANNUAL RATE CONTRACTS

19.1 For items required continuously throughout the year in large quantities, it may
be advantageous to have a rate contract on lines similar to those of the
DGS&D. These contracts will not be for longer than one year and will be
finalised after inviting open tenders and after negotiations in consultation
with finance.

19.2 Items for which annual rate contract should be concluded will be specified
and this list will be reviewed and additions made every year depending upon
the past consumption or on anticipated consumption. Annual rate contracts
will not be entered into in the case of items for which the market shows
 marked downward trend. In order to provide against a fall in the market
price during the currency of the rate contract, the contract should include
the standard Fall Clause as in DGS&D Rate Contracts.

(MM/56/2010 dated 11.10.2010)

20. PURCHASE THROUGH BOARD OF OFFICERS

Purchase by a board of Officers will be resorted to only in exceptional

circumstances when the materials / services / works are either required urgently
to overcome an emergency or because the indentor is not able to give firmed up /
detailed specifications (necessitating on the spot decision based on the availability
in the market) so that procurement cannot be made under the normal purchase
procedure, provided further that:

i) Prior approval of the Competent Purchase Authority, not below L-1

executive, is obtained and furnished alongwith the Purchase Indent,
before resorting to purchase through a board of officers.

ii) Competent Sanctioning Authority not below Level-1 is empowered to

constitute a Board of Officers comprising MM Executives having
purchase power for value of Board Purchase and an executive each of
equivalent level from indenting Department and Finance. Proceedings of
such purchase boards (comprising of executives of competent level) will
not need approval of any authority, since spot decisions are required.

iii) If for any reason it is not possible to constitute a purchase board with
competent officers, the board may be constituted with an officer of the
next below rank. However, the reasons should be recorded in writing
and the proceedings of such a purchase board should be got ratified
by the authority constituting the board.

(MM/54/2010 dated 04.06.2010)

iv) For carrying out the purchase, the board of officers shall explore the local
markets as first priority, before seeking offers from outside the city/town.
Further, the board of officers shall obtain as many quotations as possible
so as to determine the reasonability of rates. In case the supplier(s) do
not agree to give the hand quotations this fact will be recorded by the
board of officers in their proceedings.

(MM/56/2010 dated 11.10.2010)

v) The approval for resorting to purchase through a board of officers shall

be accorded after ensuring that the indentor has obtained and rendered
a non-availability certificate on STR-6A in respect of the items (other
than crockery, cutlery, linen and items of complimentaries) to be
purchased.
 vi) The board of officers shall obtain as many quotations as possible so as to
determine the reasonability of rates. In case the supplier(s) do not
agree to give the hand quotations this fact will be recorded by the
board of officers in their proceedings.

vii) The board of officers will, if necessary, be authorised to make purchases

from market on cash basis.

viii) Curtain Cloth: Curtain cloth will be purchased from Millshops / Govt. /
Emporiums on as and when required basis but by clubbing the
requirement. If these are not located nearby, purchase may be made
from authorised stockists / dealers. In exceptional cases, the above can
be relaxed with reasons to be recorded in writing, by the concerned Level-
I executive.

(MM/56/2010 dated 11.10.2010)

21. EMERGENCY PURCHASE

21.1 Emergency purchase (including hiring of services on emergency), directly by

user department without reference to Purchase Wing, shall be resorted in the
situations of emergencies - like flood, fire, civil disturbances, war, cyclones, blow out,
operational break down or likelihood of operational breakdown where it is necessary
to restore normalcy of equipment, machinery or vehicles and the urgency does not
permit following the normal methods of purchases.

21.2 Detailed justification for resorting to such emergency purchases should be

recorded at the time of processing the proposal for approval of competent authority
as per powers delegated under item No. F5 and ME1 of BDP-2009.

21.3 Reporting of single tender cases on nomination basis would be done to the
concerned Director/EPC/Board, as per prevailing instructions issued from time to
time.

21.4 Quantity to be purchased shall be restricted to the minimum essential and

the purchase shall be accounted for immediately by submitting Pre-receipted
indent alongwith the Inspection Report, Invoice, Delivery Challan and Supply
Order, to the Materials Management (Stock) for raising GRV.

21.5 Concerned Indentor / User department shall ensure sufficient stock of critical
spares and the materials for which repeated emergency purchases have been
made, by following normal methods of purchase through MM department.
TWO BID SYSTEM
22. TWO BID SYSTEM

(MM/59/2011 dated 27.04.2011)

22.1 Two Bid system will be compulsory for all the tender valuing more than Rs 5
lakhs.

22.2 Under Two Bid System the bidders will be asked to submit 'Technical' and
'Commercial' bids separately in sealed cover duly superscribed and both
the offers placed in one single sealed cover, at a central place. For this
purpose, suitable labels in different covers will be provided with the
bidding documents.

22.3 The technical bids will be opened first and scrutinised by Tender
Committee.

22.4 (DELETED AS PER MM/10/2003)

22.5 (MM/8/2003 dated 02.04.03)

After the shortlisting of techno-commercially acceptable bidders, all such

bidders will be notified (by fastest mode like fax) of the date of opening of
priced bids in public, allowing a period of not exceeding 5 working days,
depending upon the urgency of requirement and location of bidders, so as
to enable such bidders to participate in tender opening, if they so like. For
this purpose, identified fax is to be used, and the fax must be correctly
programmed for Tel. number and date / time stamp. This is to be ensured by
MM member. The priced bids will be opened by same Tender Opening
Officers who are already detailed for opening of tenders and the Tender
Committee members of the case, as per provisions of para 52 of this Manual.

(MM/09/2003 dated 21.04.03)

22.6 Price bids, which remain, unopened with ONGC, are to be returned to the
concerned bidders within a period of 5 working days of receipt of Performance
Guarantee Bond (s) from the successful bidder (s). A clause in this regard
should be inserted in the Bidding Documents.

22.7 (Provision deleted, MM/8/2003 dated 02.04.03)

SHORT LISTING OF BIDDERS AND FINALISATION
OF BID EVALUATION CRITERIA
 23. Short-listing of bidders:

23.1 Subject to provision in para 24, approval of Competent Purchase

Authority will be obtained at the following stages:-

a) Finalisation of Bid Evaluation Criteria.

b) Prima-facie shortlisting of bidders before calling them for clarificatory

discussions.

c) Shortlisting of bidders for price bid opening.

(MM/8/2003 dated 02.04.03)

24. Finalisation of Bid Evaluation Criteria (BEC) and floating of tender.

24.1 The tendering process at the Assets / Basins / Institutes / Hqrs should
commence with the availability of budget, followed by detailed indent raised
by the indenting department giving specifications and technical BEC along
with cost estimates and the financial sanctions. The Competent Purchase
Authority will decide the required type of tender to be issued viz (i) Public
tender (open tender) (ii) Limited tender (minimum 5 parties) and (iii) Single
tender (nomination, based on delegated powers in this regard). The
Competent Purchase Authority of the tender (on recommendations of the
Tender Committee) will also approve the technical and commercial terms and
conditions in the following context:

i). Induction of latest and appropriate technology

ii). Competitiveness,
iii). Lessons / experiences of the past tenders / contracts.

The Competent Purchase Authority will record the reasons for deviating, if
any, from the normal tendering procedure spelt out in paras 15 and 16 of this
MM Manual.

(MM/46/2009 dated 04.11.2009)

Concerned Director shall have full powers, including for the cases falling
under the powers of EPC.

(MM/8/2003 dated 02.04.03)

BECs should be firm / standardized. BEC revision must be done only by

exception, based on cogent and transparent justification. BEC in general
should have a Rejection (both technical and commercial) criteria, and financial
Evaluation methodology (including Loading criteria). In all cases, the Bid
Evaluation Criteria (BEC) along with the Matrix will be brought before the
Competent Purchase Authority for approval . Wherever the last BEC
approved by EPC / CPA is proposed to be used for the next tender, there is
 no need to obtain repeat approval of the BEC (apart from changes that may
be necessary due to fresh guidelines issued by PMC).

Such cases falling under the power of EPC will be brought to it for approval
after endorsement of the concerned Director. who will consider the factors
(i), (ii) & (iii) given above, after due examination and recommendation by the
Asset Manager / Basin Manager / Chief of Services / Head of Institutes /
Regions Similarly, if there is no change in the mode of tendering earlier
approved by EPC, such cases may be approved by Director concerned
without referring to EPC again.

(MM/40/2009 dated 30.06.2009)

Concerned Director(s) will have full powers to approve short-listing of bidders

for price bid opening for cases falling within their powers and for EPC level
cases.

(MM/38/2009 dated 24.04.2009)

24.2 BEC (excluding the standard provisions), once approved by competent

purchase authority for a particular tender can be reviewed / modified as a
sequel to pre-bid conference. Wherever departure from BEC (excluding the
standard provisions) is considered necessary (as a sequel to pre-bid
conference), detailed reasons in tabular form are to be given (in the proposal
for approval of competent purchase authority) indicating as to why such
departure is considered necessary. It will specifically be indicated as to
whether ONGC would entail any extra expenditure on account of the
proposed changes in BEC and if so, analysis will also need to be given
indicating the economic benefit in terms of improved efficiency or
otherwise that would accrue to ONGC versus the extra expenditure
involved due to modification in BEC. After this no change in BEC will be
allowed. Where no pre-bid conference has been convened, BEC in such
cases will not be modified under any circumstances.

Powers to approve modification / relaxation / departure from approved BEC,

as a sequel to pre-bid conference (and not after opening of bids), will rest with
Competent Purchase Authority. In this regard, Director concerned shall have
full powers including in EPC level cases, provided, such changes are not in
conflict with the existing policy/ procedure/ PMC instructions.

24.3 Before invitation of tenders, the technical as well as commercial Bid

Evaluation Criteria will be formulated by the tender committee as per
provisions vide para 24.1.

24.4 The Bid Evaluation Criteria so finalised will invariably be sent

alongwith bidding document to all prospective bidders.
INVITATION OF TENDER
 INVITATION OF TENDERS

25 Coordination and bulking of demands for purpose of inviting tenders:

When dealing with indents, due attention should be paid to the combination
and bulking of demands which will result in economy in purchase.
Demands for materials received simultaneously from different indentors
should be combined as far as possible while inviting tenders. Due regard
should, however, be paid to delivery instructions given by the indentors.
Demands which cannot be suitably combined with others for this or any other
reasons should be dealt with separately.

26. ENQUIRY REGISTER

26.1 Every individual section dealing with purchases will maintain an enquiry
register. A separate page for each enquiry will be allotted in that register.

26.2 In case of limited enquiries, the name of the firms to whom the enquiries will
be addressed will be entered in that register. This will be signed by the
concerned officer sending the enquiry.

27. TENDER SETS TO BE KEPT READY AND TENDER

INTIMATION TO BE SENT TO PROSPECTIVE BIDDERS

All concerned sections dealing with open tenders before they send tender
invitation to the press for advertisement will ensure that :-

a) the tender forms are complete in all respects and are ready for sale.
About 20 sets are to be kept ready and all are to be serially
numbered.

b) tender intimations are sent to prospective bidders as soon as the

information is received that the tender has been advertised.

28. SUBMISSION OF TENDERS FOR PUBLICATION IN PRESS

(MM/42/2009 dated 08.07.2009)

In case of open tenders, for publication of NIT in press, a period of 7 days

should be provided from the date it is sent for advertisement to the Corporate
Communications. Various milestones of the tender (such as starting date of
sale, closing date of sale, last date for receipt of queries, pre-bid conference
date, tender closing/opening date) should be specified in the NIT, after taking
into account the likely date of publication of the NIT.
29. TIME TO BE ALLOWED TO TENDERERS TO QUOTE

(MM/42/2009 dated 08.07.2009)

29.1 Save in special cases which should be seen and approved by concerned
Level-1 executive, the following period will be allowed to bidders for
submitting their bids in Open Tenders:

Description of Activity Tenders without Tenders with pre bid

Pre-bid conference
conference
(i) Tender sale period. 21 days 21 days
(ii) Receipt of queries from …. 7 days
bidders
(iii) Scrutinizing the queries …. 8 days
and holding pre bid
conference
(iv) Approval of Pre-bid …. 8 days
minutes and issue of the
same
(v) Submission of offers and 10 days 21 days
opening of techno-
commercial offers(TBO)

TOTAL 31 days 65 days

Note:

Only in LSTK contracts, an additional time of 30 days for “Process Platforms”

and 15 days for all other LSTK projects including “Well Platforms” and “Pipe
Lines” shall be applicable for the activities between Pre-bid conference to
TBO (i.e. between activities at iv and v above).

29.2 The above period is to be reckoned from the date of publication of NIT in the
news papers.

29.3 Bidding documents should be ready for sale at tender selling centres on the
date NIT appears in news papers.

(MM/42/2009 dated 08.07.2009)

29.4 Save in special cases which should be seen and approved by concerned
Level-1 executive, the following period will be allowed to bidders for
submitting their bids in Limited Tenders valuing above Rs 5 lakhs:-
 Cases valuing Cases valuing above
above Rs. 25 Rs. 25 Lakhs without
Description of Activities Lakhs with PBC and cases valuing
PBC between Rs.5 lakhs and
upto Rs.25 Lakhs
(i) Receiving requests for tender 10 days 10 days
enquiries from vendors whose
name not included in original list
(from the date of publication of
tender enquiry on the web site).
(ii) Verification of such requests by 6 days 6 days
indentor and issue of tender
enquiries to eligible bidders
(including the time required for
receiving the same by the bidder).
(iii) Receipt of queries from bidders for 7 days ….
pre-bid conference
(iv) Scrutinizing the queries and 8 days ….
holding pre bid conference
(v) Approval of Pre-bid minutes and 8 days ….
issue of the same
(vi) Submission of offers and opening 21 days 10 days
of techno-commercial offers(TBO)

TOTAL DAYS 60 days 26 days

Note:

Only in LSTK contracts, an additional time of 30 days for “Process Platforms”

and 15 days for all other LSTK projects including “Well Platforms” and “Pipe
Lines” shall be applicable for the activities between Pre-bid conference to
TBO (i.e. between activities at v and vi above).

29.5 For limited tenders valuing upto Rs 5 Lakhs, a period of 21 days shall be given
to the bidders for submission of offers, from the date of issue of tender
enquiries.

30. VALIDITY PERIOD

(MM/42/2009 dated 08.07.2009)

30.1 The bidders will be asked to keep their offers open as under:

i) Limited tenders upto Rs. 25 lakhs - 60 days

ii) Non EPC cases above Rs. 25 lakhs - 90 days

iii)EPC level cases - 120 days

 Note:

For any particular case, if longer bid validity period is considered necessary,
than the validity period prescribed above, then the longer bid validity period
can also be specified in the tender with the approval of CPA (Director
concerned for EPC level cases), but due justifications for such longer bid
validity required must be given while obtaining the approval. However, after
specifying a reasonable time for bid validity period, the same must be
adhered to.

30.2 It should be specified in all tender notices under Single Bid System that
offers with lesser than the required validity will be straightway ignored.
However, under Two Bid System no offer should be rejected on account
of shorter validity. In Two Bid System, as soon as technical evaluation is
completed, reference should be made to all bidders except those which
are technically rejected, for furnishing validity, as required at that stage.

31. NOTICE INVITING QUOTATIONS / TENDERS (NIT)

(MM/8/2003 dated 02.04.03)

In regard to Notice Inviting Tenders, following points are to be kept in

view:-

(i) The Notice Inviting Tenders (NIT) will clearly indicate the place at, date
and time by which tenders will be received and the place, date and the time
at which these will be opened.

(MM/47/2009 dated 04.11.2009)

(ii) The major qualifying criteria (which are very essential) must be specified
clearly in the NIT so that prospective bidders are aware of this requirement at
the time of buying bidding documents.

(ii) The time and venue of the pre-bid conference (if any envisaged) also must be
clearly specified in the NIT.

(iii) Notice Inviting Tender should include an instruction that bids sent by
post must be sent under registered cover so as to reach the place well
before the closing time and date.

(iv) All bids received by the notified closing date and time whether through the
post or through the tender box, will be registered under the signature of the
Tender Receiving Officer.

(v) Notice Inviting Tenders may be transmitted by fax also, wherever required.

(vi) Notice Inviting Quotations / Tenders will indicate the date and time of the
commencement of the sale of the tender.
(vii) Bidding documents depending upon value notified from time to time, will
be made available for sale on specified date and time at (1)Dehra Dun
(2)Calcutta (3)Mumbai (4) New Delhi (5) Chennai.

32. NUMBER OF COPIES OF OFFERS TO BE CALLED FROM BIDDERS

Copies of bids will be called as under:

(i) Where in-house evaluation Copies in

is involved triplicate

(ii) Where bid evaluation is Five Copies

done by outside agency.

33. VARIATION IN QUANTITY AFTER INVITATION OF TENDER

33.1 Provisions will be made in all tender conditions for procurement of goods that
ONGC is entitled to increase or decrease the quantities amongst any / all the
items of the tender by not more than 20% (twenty percent). However, in case
of procurement of goods under Two bid system, any variations upto + 20%
of the tendered quantity would be permissible only if it is decided before price
bid opening. No change in quantity would therefore be permissible in the
quantities that are proposed to be purchased after price bids are opened.

33.2 In case there is an increase in the quantity beyond 20%, it would be essential
to invite fresh tenders covering the total revised quantity so as to get the
advantage of bulk discount in prices.

33.3 In case the reduction in quantities is more than 20%,confirmation from L-

1 bidder would be obtained to supply at the quoted rates. On getting
confirmation, order for the reduced quantity will be placed. If L-1 bidder
does not agree, then tender would be re-invited.

33.4 In case of tenders like those of pipes for offshore where large quantity is
involved, even lower percentage may be specified in the tender with
approval of Regional Director concerned.

34. SALE OF BIDDING DOCUMENTS TO FIRMS WITH WHOM BUSINESS

HAS BEEN BANNED / SUSPENDED.

The bidding documents will be sold on receipt of application(s) alongwith

requisite tender fee. No bidding document will however be sold to the
party(ies) to whom no further business is to be given or dealings with whom
have been banned / suspended.
35. TENDER FEE

(MM/8/2003 dated 02.04.03)

35.1 All open tenders will be issued after making necessary entries in the tender
register against payment of prescribed tender fee. The tender fee will be
acceptable in the form of crossed "Payee Account only" Bank Draft /
Cashier's Cheque / Banker’s Cheque drawn by Bank and valid for 180 days
from the date of issue of the same or in the form of Indian Postal Orders
payable to the ONGC.

35.2 Subject to provisions laid down vide para 36, the IPOs / Bank Drafts /
Cashier’s Cheques / Banker’s Cheques will be deposited and accounted
for at the station where they are received and credited in the accounts
there itself. The Purchase Formation concerned from where bidding
documents have been received for sale will, however be furnished with full
details of parties to whom the bidding documents have been sold and the
number of bidding documents not sold, which will be returned.

36. PURCHASE OF BIDDING DOCUMENTS BY AGENTS IN INDIA

In respect of imports, the Agents in India, duly authorised by their foreign

principals, will be allowed to purchase bidding documents in Indian currency
through Bank Draft drawn in favour of ONGC provided such foreign principal
/ supplier remit the cost of bidding documents in foreign currency
equivalent to Indian Rupees through Bank draft / Cashiers Cheque / Banker’s
cheque in favour of ONGC alongwith their offer before due date. The Bank
Draft in Indian Currency received by tender (selling) agencies from
authorised agents in India will be sent to the concerned FAO under
intimation to Purchase Authority concerned. Demand Drafts received from
Indian Agents for the purchase of bidding documents will not be encashed
immediately. On receipt of requisite tender fee in foreign currency the Bank
Draft in Indian currency received from authorised agent in India will be
returned by concerned FAO under intimation to concerned Purchase
Authority. Care should be taken by concerned FAO to ensure that demand
drafts are encashed within validity period, if no draft, in foreign currency is
received.

37. CANCELLATION OF TENDER - REFUND OF TENDER FEE

In the event, a particular tender is cancelled the tender fee will be refunded
to the concerned bidder.

(MM/68/2012 dated 05.10.2012)

38. EXEMPTION FROM PAYMENT OF TENDER FEE

Micro and Small Enterprises (MSEs) registered with District Industry Centers
or Khadi and Village Industries Commission or Khadi and Village Industries
 Board or Coir Board or National Small Industries Corporation or Directorate of
Handicrafts and Handloom or any other body specified by Ministry of MSME
will be exempted from payment of tender fee irrespective of the monetary
limit mentioned in their registration certificate provided they furnish evidence
that they are registered for the items they intend to quote against ONGC
tenders. The Govt. Deptts. will also be exempted from the payment of
tender fee.

(MM/33/2008 dated 29.04.2008)

39. INTIMATION REGARDING INVITATION OF TENDER TO TRADE

COMMISSIONS / CONSULATES / REPRESENTATIVES OF FOREIGN
GOVTS.

To give wide publicity, intimation regarding invitation of tenders which are

invited on ICB / Limited International Bidding (LIB) basis should be sent to
Trade Commissions / Consulate / Representative in India of foreign
Governments. The intimation letter besides containing the brief details about
the tender should also inform them that the NIT alongwith the complete
bidding documents are uploaded on the ONGC’s tender website

40. TENDER FEE

40.1 The following tender fees will be charged from the bidders for sale of
bidding documents for procurement of items not specific to the requirement of Oil
Industry:-

(SP/2/99 dated 14.05.99 & MM/08/03 dated 02.04.03)

Sl. Estimated Value of tender Indigenous Import Purchase

No. Purchase
(in Rupees)
Tender Fee for Tender fee for
domestic bidders foreign bidders
(Rs.) (US$)

i) For tender exceeding 200.00 2250.00 50.00

Rs.25.00 lakhs but not
exceeding Rs.50 lakhs

ii) For tender exceeding 500.00 4500.00 100.00

Rs.50.00 lakhs but not
exceeding Rs.1.00 crore

iii) For tender exceeding 500.00 9000.00 200.00

Rs. 1.00 crore but not
exceeding Rs.2.00 crores

iv) For tender exceeding 1000.00 22500.00 500.00

Rs. 2.00 crores but not
exceeding Rs.5.00 crores

v) For tender exceeding 1000.00 45,000.00 1000.00

 Rs. 5.00 crores

40.2 In the case of high value tenders where technical drawing / specifications
run into several pages, the cost will be fixed by the Head of Materials
Management concerned keeping in view the expenditure incurred thereon
and the labour involved.

40.3 With a view to eliminate the offers without requisite tender fee, the
bidding documents will be serially machine numbered and proper
account of distribution thereof maintained by the purchase section
concerned. The bidders will be required to return the bidding documents
either in original or photocopy thereof for facilitating linking after tender
opening.

41. OFFER WITHOUT HAVING PRESCRIBED BIDDING DOCUMENTS OF

ONGC

The condition "Offer sent without having the prescribed bidding document of
ONGC and without complying with the terms and conditions of bidding
document for submitting the offer, will be ignored straightway" will be
inserted in all tender notices.

(MM/68/2012 dated 05.10.2012)

42. SALE OF BIDDING DOCUMENT

On receipt of request, bidding document will be sold against requisite tender

fee or issued free of cost to registered parties after ensuring the requirement
of para 38, by Tender Selling Centre. The bidding document will be
issued by Tender Selling Centre under a forwarding letter indicating therein
the following details:-

(i) Tender No.

(ii) Name of the bidder and address
(iii) Demand Draft / Banker’s cheque / cashier’s cheque/ IPO number, date,
value and payable at
(iv) Whether the bidder is Govt. Deptt./ MSE registered with District
Industry Centers or Khadi and Village Industries Commission or Khadi
and Village Industries Board or Coir Board or National Small Industries
Corporation or Directorate of Handicrafts and Handloom or any other
body specified by Ministry of MSME

(Signature)
Name of the Issuing Officer
Designation
Address of Issuing Centre
 The bidder must submit this forwarding letter alongwith the offer (alongwith
unpriced bid in case of Two Bid System). In case the Bidding Document
has been received free of cost, bidder must also submit the forwarding
letter alongwith the valid registration certificate containing the following:-

(a) Registration Authority

(b) Item for which Registered
(c) Monetary limit upto which Registered
(d) Validity of Registration

43. ISSUE OF BIDDING DOCUMENTS

43.1 The entries of the issue of bidding documents will be made in the register to
be maintained by section concerned for this purpose. One page should be
attached for each tender advertisement. Following columns should be made
in the register:-

Sl. No. Name of the Postal order/ Value of Date of Date of Signature
firm to whom Bank Draft/ Postal receipt of issue
bidding Banker’s order/Bank application
document cheque/Cashi draft/ for bidding
issued er’s cheque Banker’s document
cheque/Ca
shier’s
cheque
Asstt Asstt. MM
officer
Materials
Managem
ent officer
1. 2. 3. 4. 5. 6. 7. 8.

Signature Sl. No. No. Of Signature of Tender Special Signature of

of Firm’s Allotted samples Opening Officers Remarks of Firm’s
representat to each received Tender representativ
ive (if by tender alongwith offer Opening e(s) who
hand) Officer, if any attended
tender
opening
Asstt. MM FAO/Asst.
Officer/MM FAO
Officer
9 10 11 12 13 14 15

1. Total No. of

a) Envelopes received for opening from Tender Receiving Officer

b) Samples received from Tender Receiving Officer.
c) Samples received alongwith offers.
2. Total No. of:

a) Tenders handed over to the Asstt./Officer concerned

b) Samples handed over to the Asstt./Officer concerned
c) Letter of Authority of the firm(s).

1) Tender Opening Officers' Signature

2) Signature of receiving Asstt./Officer

43.2 This register should be presented by the Section concerned at the time of
opening of bid. Both the Officers opening the tenders will sign in column 12
and 13 of the above register against the names of firms whose bids have
been received.

44. ISSUE OF BIDDING DOCUMENTS AFTER CLOSING DATE

(MM/34/2008 dated 28.05.2008)

44.1 After the closing date and time is over, no bidding documents will be issued.
However, if there is an unscheduled holiday on the date on which the tender sale is
due to end, then the tender sale date will be extended by one day (i.e. upto the next
working day). Thereafter, tender selling section will prepare a statement in the
prescribed proforma showing the following columns: -

Tender Name of the firm Postal Date on which Date of Remarks

No. to whom bidding Order/Bank requisition for issue
document issued Draft/Banker’s bidding
Cheque/Cashier’ document is
s Cheque No. received
and date &
amount
1 2 3 4 5 6

44.2 One copy of the above statement is to be sent to the Accounts Section
alongwith the Postal Orders / Bank Drafts / Banker’s Cheque / Cashier’s
Cheque for encashment.

45. RECEIPT OF TENDERS

45.1 The tenders will be received as under:

i) Directly being put in Tender Box by bidders.

ii) Received by ordinary / regd. dak by Central Diary Section.

iii) Handed over personally to Central Diary Section by bidder(s) it

being it not possible for them to put in tender box due to volume of the
documents.
(MM/67/2012 dated 07.06.2012)

45.2 The Receipt and Despatch (Central Diary) Section will maintain separate
register for the bids received by them through post office / handed over to
them personally by tenderers due to their voluminous size. Tender samples
which cannot be dropped in Tender Box due to their voluminous size will
also be received by Incharge Diary Section from the bidders. All Tenders
and tender samples received by Diary Section will be recorded in this register.
The Diary Section will put date and time of the receipt on each envelope
of tender / sample and hand over the same on day to day basis to the
Tender Receiving Officer before 14.00 hrs. (1600 hrs in Mumbai Region,
including Uran and Hazira) after obtaining his initials in acknowledgement of
having received the same. In no circumstances the cover of tenders will be
opened or destroyed by Diary Section. All late tenders on receipt will be
handed over to the Section concerned on day to day basis for necessary
action as laid down vide para 73.

46. TENDER BOX

46.1 A Tender Box of the following dimension with suitable provision on its top
for dropping tenders in it will be placed in Tender Opening Room / Office
verandah.

i) Length 92 cms.
ii) Height 123 cms.
iii) Width 46 cms.

46.2 The Tender Box will always be kept locked and sealed. Keys of Tender
Box will be under the custody of Tender Receiving Officer.

47. NOMINATION OF TENDER RECEIVING / OPENING OFFICER(S)

47.1 An Officer of Materials Management not below E-0 level will be nominated
for receipt of tenders each month. In addition, one officer not below E-0
level each from Materials Management and Finance and Accounts Deptt.
will also be nominated for opening of tenders each month. Arrangements
will also be made for nominating officers not below E-0 level as Leave
Reserve for above purpose.

47.2 The names of the officers selected for a particular month for receipt and
opening of tenders will be communicated to all concerned alongwith tender
opening programme on the first day of the month, if not earlier.

48. ACCOUNTING OF TENDERS

48.1 Each Purchase Centre will have an almirah with 31 pigeon holes. Each
pigeon hole will be for each date. Key of this almirah will be under the
custody of Tender Receiving Officer.
(MM/67/2012 dated 07.06.2012)

48.2 The Tender Receiving Officer will take out at 14.00 hrs. (1600 hrs in
Mumbai Region, including Uran and Hazira) on each working day all tenders /
samples from Tender Box and will put dated initials on each envelope.
Thereafter, the lock of Tender Box will be sealed. All these envelopes as well
as envelopes received from Diary Section containing bidding documents /
samples will be placed by him in their respective date bins of the
Almirah provided for this purpose.

48.3 The Tender Receiving Officer will maintain numerical account of the tenders
/ samples taken from Tender Box as well as of the tenders / samples
received by him from Diary Section on the following format:

Opening No. Of tender /samples received Issued Closing

Balance balance
Tenders Sampl Through Diary Tender Box Total Tenders Sample Tenders Sam
es Section s ples
No. Of Sample No. Of Sample No. Of Sam
Tenders s Tenders s tenders ples
1 2 3 4

48.4 In addition, the Tender Receiving Officer will note down full particulars of
each tender / sample received by him every day in a register to be
maintained for this purpose. In this register, there will be one or more pages
allotted for each tender notice and this will have the undermentioned
columns:-

Tender No......... Due date of Opening......

Sl. Name of No. Of envelopes Dt. Of receipt Source of receipt Initials

No the party received
Tender Sample Diary Tender
s s Section Box

1 2 3 4 5 6

48.5 The tenders / samples received from different sources on different dates
shall be entered in the above register. On the due date of opening, a line will
be drawn at the end indicating thereby the total number of tenders / samples
received against the tender notice in question. In the cases where no
tender / sample has been received on a particular date, the Tender Receiving
Officer will record the fact of non-receipt of any tender on the due date. The
late tenders / samples received by Tender Receiving Officer from Tender
Box shall also be entered in the above register after the closing entry of
the timely received tenders / samples.

48.6 The Tender Opening Officers will put their signatures with date and time
at the end of last entry of timely received tenders / samples in the Tender
Receipt Register in token of their having taken over the tenders mentioned
 therein on the due date of opening. Late tenders / samples will be handed
over by Tender Receiving Officer to the concerned Materials Management
Officer after obtaining acknowledgement.

49. OPENING OF TENDERS

49.1 The tenders should only be opened on limited days to save time. Every
section, while issuing enquiry, will ensure that only the following dates of
the month are given as Due Dates 3,5,7, 9,11,13,15,17,19, 21,23,25,
27,29 and 31. If any due date happens to be Sunday or Gazetted Holiday
then next due date may be fixed. In case of emergency, if it is not possible
to adhere to these due dates, then other dates may be given but such
cases should be reduced to minimum. The Head of Materials Management
of concerned Business Group may, however, authorise opening of
tenders on all working days, if situation so warrants.

(MM/67/2012 dated 07.06.2012)

49.2 Tenders are to be opened at 15.00 Hrs. (1700 hrs in Mumbai Region,
including Uran and Hazira) on the day they are due to be opened.

49.3 The Tenders / bids will be opened by a team of two officers as per para 47.

50. NUMBERING OF TENDERS / DISCLOSURE OF PRICES / READING

OUT THE RATES

Numbering of Tenders

50.1 The Tender Opening Officers will encircle the rates and terms and conditions
and put their initials. If there is any cutting, overwriting or erasing that will
also be stated and signed by both the officers. Total number of
sheets in the bid will be mentioned on the first sheet of bid and all the sheets
should be initialled by both the officers opening the bid and the bid will be
given Serial number. As for example, if 7 bids have been received against
one particular enquiry, then bids should be numbered as 1/7, 2/7 and so
on. The bids which are received by post after due date should be marked
'Late' tender with No. 8/7 and so on. The samples received along with the
tenders should also be signed by both the officers. If it is not possible to sign
on the samples then those samples should be sealed with the label
mentioning the name of the firm. Name of the firm should invariably be
recorded on the sample, if not given already.

50.2 All envelopes are also to be retained on the record and these are to be
initialled by both the officers authorised to open the tenders.

(MM/50/2009 dated 21.12.2009)

50.3 The Section concerned whose tender is due on that particular date will be
present at the time of opening of the tender with the tender register. Both
 Tender Opening Officers will sign the register against the name of the firms
whose bids have been received. The summary/remark in respect of the offers
received, as para 43.1 above, shall be recorded by the tender opening
officers, immediately following the entries made for the individual offers.
Thereafter, the tender opening officers should make sure that no space/pages
are left blank between the last entry of particular tender (which has been
opening by them) and the starting page of the next tender (appearing in the
register), by crossing out the blank space/pages with the remark “space/page
cancelled” and should also initial on these pages.

50.4 Reading out the rates:

In the public opening, only the total prices or group-wise prices, if sought
as per tender should be read out in addition to delivery schedule and major
terms and conditions. Offer should not, repeat not, be circulated amongst the
bidders' representatives.

51. DISCLOSURE OF PRICES

Bids are to be treated as confidential documents and save at the time of

public opening of tenders, prices quoted are not to be disclosed to any
member of the staff without permission of the General Manager(MM) /
DGM(MM) / Head of the Project / Head of Business Group.

52. OPENING OF TENDERS IN PUBLIC

(MM/55/2010 dated 05.07.2010)

52.1 Unless good and sufficient reasons exist (which must be recorded on the file)
all bids, including bids for service contracts, estimated to cost Rs.1.00 Lakh
and above, must as a rule be opened in the presence of bidders /
authorized representatives of bidders.
.

(MM/33/2008 dated 29.04.2008 & MM/49/2009 dated 02.12.2009)

52.2 The matrix for technical / techno-commercial / commercial must be worked

out (as a part of the BEC) in advance (of opening of technical bids) by the
Tender Committee (in cases exceeding Rs 25 lakhs) and approved by the
Competent Purchase authority specified in Para 24 along with BEC. The
matrix in which the bidders will be required to fill up the bid data will be
designed objectively to cover all techno-commercial points of the tender
required for evaluation and will be kept as a part of tender documents, for the
bidders to fill up the same and submit alongwith offers (to facilitate ONGC
filling up of matrix during bid-opening as otherwise, the opening officers will
have to search the voluminous offers to locate the relevant bid details for
tabulation). Bidders should be asked to indicate their compliance by clearly
mentioning as “Confirmed” or “Not Confirmed”, to avoid any misinterpretation.
 Format for Bid matrix should also have provisions for indicating the
reference/location (page No. / Annexure etc.) of the respective
detail(s)/document(s) enclosed in the bid, so as to easily locate the same for
tabulation.

52.3 On opening, the data from the technical / techno-commercial / commercial

bids are to be immediately tabulated and signed by the Tender Opening
Officers, in presence of the interested bidders. Respective dealing
officers/dealing assistants shall assist the tender opening officers in tabulating
the details in the matrix. Immediately after tender opening, offers will be sent
for technical comments and comparative statement will be prepared as per
provisions.

52.4 Price bids are to be opened only for the qualified bidders and data are to be
tabulated and signed by the Tender Opening Officers immediately, in
presence of the interested bidders. Respective dealing officers/dealing
assistants shall assist the tender opening officers in tabulating the details in
the matrix. It should be clarified in the Matrix relating to the priced bid opening
that priced data reflected in the matrix will be as quoted by the bidders and
subject to necessary correction based on detailed scrutiny of the priced bids,
evaluation for loading criteria etc. The Comparative Statement vetted by
Finance will be the basis for taking the decision for placement of purchase
order / award of contract.

52.5 The officers opening the tenders should verify that only bidders /
authorised representatives of bidders who have actually submitted the bids
are present. Unauthorised representatives (or representatives of firms who
have not submitted the bid) should not be allowed to be present.

(MM/32/2008 dated 25.04.2008 & MM/51/2010 dated 29.01.2010)

53 E-MAIL / FAX / TELEX / TELEGRAPHIC OFFERS:

TELEX / FAX / Telegraphic Offers will not be accepted. However, in OEM

purchases from single source or where source of supply is pre-fixed, Telex /
Fax / Telegraphic / E-Mail offers may be considered provided such offers are
followed by confirmatory copy within 15 days of the date of receipt of offer.
However, in case of purchase from OEM or their authorized
Dealers/Distributors/ Stockists on single tender basis, if they do not submit
confirmatory copies even after persuasion then such E-
mail/Telex/Fax/Telegraphic offers may be considered with the approval of
CPA under exceptional circumstances. For EPC level cases Director
concerned shall have full power to approve consideration of such E-
mail/Telex/Fax/Telegraphic offers.

54. CANCELLATION / RE-INVITATION OF TENDERS

54.1 Cancellation of tenders:

54.1.1 A tender shall be deemed to have been cancelled to the extent a demand is
withdrawn. Advice regarding the cancellation action shall be conveyed to
the indentor.

(SP/4/99 dated 14.10.99)

54.1.2 Cancellation of tenders for any other reason, to be recorded in writing, shall
require the approval of the purchase authority one step higher than the
competent purchase authority. However, in all such cases the Director
of concerned Business Group with the concurrence of Director (Finance) will
be final authority.

54.2 Re-invitation of tenders

54.2.1 In the event of re-invitation of bids whether on a limited or open tender basis
the Competent Purchase Authority will obtain in advance the decision of
the Purchase Authority one step higher. In respect of proposals falling
under the purview of Executive Purchase Committee, the decision for re-
tendering will be taken by concerned Director in consultation with
Chairman-cum-Managing Director.

54.2.2 Such re-invitation of bids, on a limited basis, will be from all the bidders
who quoted against the original tender.

54.2.3 Similarly, in the case of open tenders intimation regarding re-invitation of

tenders will be sent to all the bidders who quoted against the original tender.

54.2.4 Reasons for re-invitation of tenders in all such cases will be recorded.

(MM/33/2008 dated 29.04.2008)

55. EXTENSION OF TENDER CLOSING / OPENING DATE

Sale of bid documents should close at least 3-4 weeks before the date of
opening of bids and both the dates should be specified in the NITs / Bid
Documents.

Extension of date of closing / opening of bids should be avoided as far as

possible. However, where it is in-escapable (valid and justified reasons for
such extension should be recorded in writing), the competent purchase
authority will be empowered for extension of date of closing / opening of bids,
maximum upto two weeks. Officer one level above the competent purchase
authority will approve any extension beyond two weeks. However, on the
basis of TC recommendations, CPA shall have powers to approve extension
of date of closing / opening of bids upto 4 weeks, as a consequence of
interactions with prospective bidders during pre-bid conference. For EPC
level cases, concerned Director will have full powers to approve extension of
closing / opening date of bids.
Requests for extension of tender closing / opening date, received on the
date specified for the same, shall NOT be considered.

No tender document will be sold during the extension period.

CLAUSES IN TENDERS / SUPPLY ORDERS
56. CLAUSES IN TENDERS / SUPPLY ORDERS

56.1 Warranty and Guarantee

56.1.1 In the case of equipment, the warranty for a period of 18 months from the
date of shipment or 12 months from the date of commissioning of the
equipment, whichever is earlier, will be obtained.

The warranty period in case of turnkey projects will be obtained for 12

months from the date of satisfactory commissioning and handing over of the
complete project to the ONGC.

The Bank Guarantee for warranty period in the case of equipment will not
be necessary. The guarantee for warranty in the case of Turnkey Project
contracts will be essential, insisted upon and failure to comply with this will
be a rejection criteria of the BEC.

56.1.2. Warranty Clause

The manufacturer warrants that every thing to be furnished hereunder

shall be free from all defects and faults in material workmanship and
manufacture and shall be of the highest grade and consistent with the
established and generally accepted standards of the material of the type
ordered and in full conformity with the specifications, drawings or samples, if
any, and operable, operate properly. This warranty shall survive inspection of
the payment for and acceptance of the goods, but shall expire twelve months
after their arrival at the destination.

(MM/66/2012 dated 03.05.2012)

56.2 Penalty / Liquidated Damages / Cancellation Clause

No liquidated damages clause will be inserted in contracts / supply orders for

purchases upto Rs.1.00 lakh. Supply order as per STR-40 will be placed
for purchases upto Rs. 1.00 lakhs which provides for cancellation clause.

56.3. Liquidated Damages / Failure and Termination Clause

(MM/66/2012 dated 03.05.2012)

56.3.1 Procurement of goods

Time and date of delivery shall be essence of the contract. If the

contractor / supplier fails to deliver the stores or any installment thereof
within the period fixed for such delivery in the schedule or at any time
repudiates the contract before the expiry of such period, the purchaser may,
without prejudice to any other right or remedy, available to it under contract
or law recover damages for breach of the contract as under:-
a) Recover from the Contractor / Supplier as agreed liquidated damages
and not by way of penalty, a sum equivalent to ½ % (half percent) of
contract price of the whole unit (1% of total value of particular item in case
of casing pipes) per week for such delay or part thereof (this is an agreed,
genuine pre-estimate of damages duly agreed by the parties) which the
contractor has failed to deliver within the period fixed for delivery in the
schedule, where delivery thereof is accepted after expiry of the aforesaid
period. It may be noted that such recovery of liquidated damages may be
upto 5 % of the contract /supply order price of whole unit of materials (10%
of the value of particular item in case of casing pipes) which the contractor /
supplier has failed to deliver within the period fixed for delivery in the
schedule;
Or
Cancel the contract / supply order or a portion thereof by serving prior
notice to the contractor / supplier.

(b) It may further be noted that clause (a) above provides for recovery of
liquidated damages (and not by way of penalty) on the cost of contract /
supply order price of delayed supplies (whole unit) at the rate of ½ % (half
percent) of the contract / supply order price of whole unit (1% of total value
of particular item in case of casing pipes) per week for such delay or part
thereof upto a ceiling of 5% of contract / supply order price of delayed
supplies (whole unit) (10% of the value of particular item in case of casing
pipes). Liquidated damages for delay in supplies thus accrued will be
recovered by the paying authorities of the purchaser specified in the
supply order, from the bill for payment of the cost of materials
submitted by the contractor / supplier or his foreign principal in accordance
with the terms of supply order / contract or otherwise.

(c) Notwithstanding anything stated in the clause (a) and (b) above, equipment
and materials will be deemed to have been delivered only when all its
components and parts are also delivered. If certain components are not
delivered in time, the equipment and material will be considered as
delayed until such time all the missing parts are also delivered.

(d) LEVY OF LIQUIDATED DAMAGES DUE TO DELAY IN SUPPLIES) :

LD will be imposed on the total value of the order unless 75% of the value
ordered is supplied within the stipulated delivery period. Where 75% of
the value ordered has been supplied within stipulated delivery period,
LD will be imposed on the order value of delayed supply(ies). However,
where in judgment of ONGC, the supply of partial quantity does not fulfill
the operating need, LD will be imposed on full value of the supply order.
However, in cases involving supply to multiple consignees/port consignees,
Work Centre to frame a suitable clause for levy of L/D on consignee/port
consignee wise basis. The due dates for supply of each item/quantities on
consignee/ port consignee wise should be specified and LD should be levied
for delay in supplies beyond the dates specified for respective items/
quantities on consignee/port wise value.
 (e) Liquidated damages will be calculated on the basis of contract/ supply
order price of services/materials excluding duties and taxes, where such
duties/taxes have been shown separately in contract/supply order.

56.3.2 Service Contracts

DELAY IN MOBILISATION AND LIQUIDATED DAMAGES

(a) CONTRACTOR shall mobilize and deploy the required manpower and the
complete equipment so as to commence the services at the specified site (s)
within a maximum of ……….days from the date of Fax order / LOA / NOA
(Work center should specify the period depending upon nature of the
services).

(b) If the CONTRACTOR fails to mobilize and deploy the required manpower /
equipment and / or fails to commence the services within the period specified
in sub clause (a) above, ONGC shall have, without prejudice to any other right
or remedy in the law or contract including sub clause (c) below, the right to
terminate the contract.

(c) If the contractor is unable to mobilize / deploy and commence the services
within the period specified in sub clause (a) above, it may request ONGC for
extension of the time with unconditionally agreeing for levy and recovery of
LD. Upon receipt of such a request, ONGC may at its discretion, extend the
period of mobilization and shall recover from the contractor, as an ascertained
and agreed Liquidated Damages, a sum equivalent to 1/2 % of annual
contract value, for each week of delay or part thereof, subject to a maximum
of 10% of the annual contract value.

(d) The parties agree that the sum specified above is not a penalty but a genuine
pre-estimate of the loss/damage which will be suffered by ONGC on account
of delay on the part of the CONTRACTOR and the said amount will be
payable without proof of actual loss or damage caused by such delay.

(e) LD will be calculated on the basis of annual contract value excluding duties and
taxes, where such duties/taxes have been shown separately in the contract.

56.3.3 Charter Hire of Rigs (Offshore)

LIQUIDATED DAMAGES

The Contractor shall deploy the Drilling Unit at the designated first drilling
location nominated by Operator, anywhere in Indian waters to
commence operation within (180 days in case of Indian parties and 120
days in case of foreign parties for Offshore charter hire services from the
date of issue of unconditional firm telex order but in no case the Drilling Unit
shall be deployed under this contract without completion of the well/wells-in-
progress under ONGC's Contract No............ In the event period of
 completion of well/wells-in-progress exceeds such 180 days, (in case of Indian
contractors)/ 120 days (in case of foreign contractors), then the Drilling Unit
shall be deployed after completion of well/wells-in-progress within the time
limit to be specified by Operator. ONGC reserves the right to extend the date
of mobilisation until weather is cleared for deployment of unit to new location,
if mobilisation period of 180/120 days as may be applicable falls between
the monsoon period (from 16th May to 15th October – both days inclusive),
without imposition of any liquidated damages. If the Contractor fails to
deploy the Drilling Unit within aforesaid period, the Operator as its sole
remedy can recover from contractor as ascertained and agreed Liquidated
Damages and not by way of penalty a sum equivalent to 1/2 % of annual
contract value (i.e. Effective Day Rate based on which bids were evaluated x
365 days) for each week of delay or part thereof subject to maximum of
10%. Operator shall have at any time but before Commencement Date, the
right to terminate the Contract in the event Contractor fails to deploy the
Drilling Unit at the first drilling location within aforesaid period, without
prejudice to any other clauses including LD Clause. The parties agree that
this is a genuine pre-estimate of the loss/damage which will be suffered on
account of delay/breach on the part of the contractor and the said amount
will be payable on demand, without there being any proof of the actual loss
or damages caused by such delay/breach.

LD will be calculated on the basis of annual contract value (i.e. Effective Day
Rate based on which bids were evaluated x 365 days) excluding duties and
taxes, where such duties/taxes have been shown separately in the contract.

Note: In case of charter hire of onshore rigs, maximum limit of LD shall

be as per Charter Hire of Offshore Rigs.

56.3.4 LSTK Contracts:

Time is the essence of the contract. If the Contractor fails to complete the
entire work by the scheduled completion date, ONGC may without prejudice to
any other right or remedy available to it as under the Contract or Law:

i) Recover from the Contractor as ascertained and agreed Liquidated Damages

and not by way of penalty, sum equivalent to ½ % of the Total Contract Price
for each week of delay occurred or part thereof beyond the scheduled
completion date subject to a maximum of 10% of the Total Contract Price
even though ONGC may accept delay in Completion of work after the expiry
of the Scheduled completion date. Rate of LD applicable for the monsoon
period (from 16th May to 15th October – both days inclusive) in case of LSTK
contracts in Western Offshore shall be ¼% of the total Contract Price for each
week of delay occurred or part thereof. However, if contractor has completed
certain part of the work within the scheduled completion date and the said
apart is ready for use and is accepted by ONGC pursuant to clause
No………… (relevant clause no. as above, to be indicated by Work Center),
then in that event, Liquidated Damages shall be leviable only on the Contract
 Price for the balance work remaining incomplete as on the scheduled date of
completion.

AND/OR

ii) Terminate the Contract or a portion or part of the Work thereof. ONGC shall
give 14 days notice to the contractor of its intention to terminate the Contract
and shall so terminate the contract unless during the 14 days notice period,
the Contractor initiates remedial action acceptable to ONGC.

In case the Contractor is unable to complete the work by the schedule

completion date, it may request ONGC before expiry of the scheduled
completion date, to allow further time for performance of the contract
indicating its willingness to pay the LD amount as agreed at (i) above. ONGC
may at its discretion allow further time as requested by the Contractor with or
without levy of LD.

The parties agree that the amount of LD provided herein is a genuine pre-
estimate of the loss/damage which will be suffered on account of delay on the
part of the Contractor and the said amount shall be payable on demand
without there being any proof of the actual loss or damage caused by such
delay/breach.

Calculation and mode of recovery of LD

LD will be calculated on the basis of contract price excluding duties and taxes,
where such duties/taxes have been shown separately in the contract.

The amount towards Liquidated Damages shall become leviable from the
original completion date as per contract or from the expiry of the extension, if
any, given by ONGC without levy of LD. Applicable LD as on date shall be
recovered progressively from balance due payment on pro-rata basis.

ONGC may without prejudice to its right to effect recovery by any other
method, deduct the amount of Liquidated Damages from any money
belonging to the Contractor in its hand (which includes ONGC’s right to claim
such amount against Contractor’s Bank Guarantee) or which may become
due to the Contractor. Any such recovery of Liquidated Damages shall not in
any way relieve the Contractor from any of its obligations to complete the
Works or from any other obligation and liabilities under the Contract.

Bank Guarantee toward Liquidated Damages (Applicable in LSTK Contracts).

In case of delay in completion of the Project, if the Contractor so desires, then

ONGC may accept a Bank Guarantee from the Contractor towards the
maximum amount of LD applicable as per Clause No…… (relevant clause
number to be indicated by Work Center). The unconditional and irrevocable
Bank Guarantee shall be drawn in favour of ONGC from a Scheduled Bank as
per the Performa (Annexure-D of Chapter-I of this MM Manual) given at
 Appendix- ………(Appendix no. of the bid document to be indicated by the
Work Center suitably). The Bank Guarantee shall be initially valid from the
date of submission upto a period of one year beyond the revised completion
date and shall be kept valid till the final settlement is arrived either mutually or
through Conciliation/Arbitration/Court. Upon submission of the Bank
Guarantee and its acceptance by ONGC, the amount withheld on account of
Liquidated Damages as per Clause No…….(relevant clause number to be
indicated by Work Center), shall be released to the Contractor. In case such
Bank Guarantee has been issued by a foreign bank (the same should be
issued from any of the banks indicated at Appendix-____ of Annexure-___ of
bid document. Appendix/Annexure number of the bid document should be
indicated by the work center ) the same shall be accepted only with collateral
security/ guarantee/ confirmation from any scheduled Indian Bank.

After final settlement of the issue regarding levy of LD as per the provisions of
the contract, the applicable LD shall be remitted by the Contractor to ONGC,
failing which the amount of LD shall be recovered by invoking the Bank
Guarantee.

56.4 Fall Clause (Applicable in case of Rate Contracts for indigenous

purchases & its non-acceptance will be a rejection criteria).

i. The price charged for the materials supplied under the contract / supply
order by the contractor / supplier shall in no event exceed the lowest
price at which the supplier / contractor or his agent / principal / dealer, as
the case may be, sells the materials or offer to sell materials of identical
description to any persons / organisations including the purchaser or any
Department of the Central Govt. or any Deptt. of a State Govt. or any
Statutory Undertaking of the Central or State Govt., as the case may be,
during the currency of the contract/supply order.

ii. If any time, during the said period the contractor / supplier or his agent /
principal / dealer, as the case may be, reduces the sale price, sells or offers
to sell such materials to any persons / organisations including the
purchaser or any Deptt. of Central Govt. or any Deptt. of a State Govt. or any
Statutory Undertaking of the Central or State Govt. as the case may be, at a
price lower than the price chargeable under the contract / supply order, he
shall forthwith notify such reduction or sale or offer of sale to the Purchase
Authority who has issued this Supply Order and the price payable under the
Supply Order / Contract for the materials supplied after the date of coming
into force of such reduction or sale or offer of sale shall stand
correspondingly reduced. The above stipulation will however not apply to :

a) Exports by the Contractor / Supplier or

b) Sale of goods as original equipment at prices lower than the prices

charged for nominal replacement.

c) Sale of goods such as drugs which have expiry dates.

 iii) The Contractor / Supplier shall furnish the following certificate to the
concerned Paying Authority alongwith each bill for payment for supplies made
against this supply order / contract:-

"I/We certify that there has been no reduction in sale price of the materials
of description identical to the materials supplied to the ONGC under the
contract / supply order herein and such materials have not been offered /
sold by me / us to any person / organisation including the purchaser or
any Deptt. of Central Govt. or any Deptt. of a State Govt. or any Statutory
undertaking of the Central or State Govt., as the case may be upto the date
of bill / during the currency of the supply order/contract whichever is later, at a
price lower than the price charged to the ONGC under the contract / supply
order except for quantity of materials categories under sub-clauses (a), (b)
(c) of sub para (ii) above details of which are as follows:-

------------------------------------------
------------------------------------------
------------------------------------------.

56.5 Inspection and rejection of Materials by Consignee (s)

When materials are rejected by the consignee, the Materials

Management Officer concerned will intimate to the contractor the details of
such rejected stores, as well as the reasons for their rejection and that
the materials are lying in the consignee's premises at the risk and cost of the
contractor. He will also call upon him either to remove the materials or to
give instructions as to their disposal within 14 days and in the case of
dangerous, infested and perishable stores within 48 hours, failing which the
consignee will either return the materials to the contractor freight to pay or
otherwise dispose them of at the contractor's risk and cost. The Materials
Management Officer will also intimate to the Finance and Accounts Officer
concerned the quantity of the materials rejected to enable him to recover
the freight due at the full public tariff rates from the contractor. The
purchaser shall also be entitled to recover handling and storage charges
for the period, during which the rejected stores are not removed @ 5% of
the value of materials for each month or part of a month till the rejected
materials are finally disposed off.

56.6 Subletting and Assignment:

The contractor shall not save with the previous consent in writing of the
Purchase Authority sublet, transfer or assign the contract or any part
thereof or interest therein or benefit or advantage thereof in any manner
whatsoever provided nevertheless that any such consent shall not relieve
 the contractor from any obligation, duty or responsibility under the
contract.

56.7 Earlier Delivery

When contracts are placed at higher rates for the sake of earlier delivery,
the clause as given below, enabling the ONGC to realise compensation for
the extra cost due to delay in supply must be included therein:-

"It should be noted that on your assurance of earlier delivery,

this order has been placed on you in preference to the lowest acceptable
bid. In case of failure to complete supplies against this contract in terms
thereof within the date of the delivery specified herein, you would be liable
to pay to the ONGC the difference between the contract rates and those
of the lowest acceptable bid i.e. Rs...... per unit, not-withstanding the
fact that the delay in supply may have been caused by force majeure.
This is without prejudice to the right of the ONGC to recover all other
losses and damages resulting from delayed supplies, including the right
of cancellation".

56.8 The following clause will invariably be included in all invitation for bids:-

"It should be noted that if a contract is placed on a higher bidder as a

result of this tender, in preference to the lowest acceptable offer, in
consideration of an earlier delivery, the contractor will be liable to pay the
ONGC the difference between the contract rate and the rate quoted by the
lowest acceptable bidder in case he fails to complete the supply in terms
of such contract within the date(s) of delivery specified in the tender and
incorporated in the contract. This is without prejudice to other right under
terms of contract".

56.9. Pilot approval (wherever applicable)

56.9.1 Before commencing bulk supply, you would forward two sets of samples
supported by two sets of your manufacturing drawings for approval of the
Inspecting Officer. Such an approval by Inspecting Officer may need at least
15 days time, which should be catered for by you within the delivery
schedule. Inspecting Officer would return to you one set of the samples and
one set of your manufacturing drawings duly sealed for your guidance in bulk
supply.

56.9.2 You will make available free of charge all testing facilities in your plant to the
Inspecting Officer to enable him to test the sample and carry out
inspection. You will arrange for any test desired by the Inspecting Officer,
at any other test house / laboratory as approved by the Inspecting Officer,
if facilities for such test are not available in your plant. In the latter case, the
test charges would be reimbursed by the purchaser if the samples are
 considered acceptable, whereas if the samples are not found acceptable,
the test charges would be borne by you.

56.10 Bulk Inspection (wherever applicable)

56.10.1 The bulk shall be accepted in accordance with the samples approved.
The Inspector shall be given sufficient notice which shall not be less than 21
working days to plan out the bulk inspection. Percentage would be
arranged by you on the same lines as in case of the pilot samples and
the test charges would be dealt with accordingly.

56.10.2 Sampling procedure will be as per the requirement of the Inspection

Authority.

56.10.3 The materials rejected by the Inspection Officer during this inspection will
be replaced by you immediately, latest within two weeks of such rejection.
Any rejection by Inspecting Officer shall be considered final and binding on
you.

56.11 EMAIL / TELEGRAPHIC / FAX OFFERS

Telex / Telegraphic / Fax copy of offers will not be accepted. However,

in OEM purchases from single source or where source of supply is pre-fixed,
Telex / Fax / Telegraphic / E.Mail offers may be considered provided such
offers are followed by confirmatory copy within 15 days of the date of receipt
of offer.

56.12 Arbitration Clause:

56.12.1 For indigenous contracts upto Rs.1.00 crore `Sole Arbitration' clause will be
applicable.

56.12.2 For indigenous contracts exceeding Rs.1.00 crores and for all Foreign
Contracts "Two Arbitrators and One Umpire" clause will be applicable.

56.12.3 For Public Sectors, the arbitration clause as per Govt.'s directives will
apply.

56.13 Submission of tender samples after opening of tenders

The belated submission of tender samples (wherever these are required),

unnecessarily holds up decision on tenders. It will be made clear to
tendering firms by insertion of a suitable clause in bidding documents that
samples, wherever required, should be sent alongwith offers so as to
reach before closing time of tender failing which the offer shall be ignored
straight away.

56.14 Scale of Rebate

56.14.1 In all invitation for bid tenders the "Instructions to Bidder" and the
conditions of contract should include the following condition:-

The minimum percentage of rebate which would be considered for early

payment would be as under:-

(i) Bills upto Rs. 5,000 2%

(ii) Bills above Rs. 5,000 1%

56.15 Catalogue and manual in case of new buys

In case of new buys provisions will be made in bidding document and

supply order to the effect that supplier will send catalogue and manual
of relevant item(s) to Inventory Control Cell under intimation to order
placing authority within two months from the date of the receipt of supply
order (or as desired by the order placing authority depending upon the
delivery period).

56.16 General Conditions

56.16.1 When the materials are dispatched to the consignee, intimation must also
be given to this effect to the purchasing authority and also to the consignee.
Reference to the supply order should invariably be given in all relevant
correspondence.

56.16.2 The Bid is liable to be rejected in case the Bidder does not comply with
the tender stipulations or the goods offered do not conform to the
required specifications indicated therein.

56.16.3 Any other terms and conditions, offered by the firm and not included in
this supply order, are not acceptable to the ONGC.
EARNEST MONEY / SECURITY DEPOSIT
57. EARNEST MONEY (BID BOND / BID SECURITY) AND SECURITY
DEPOSIT (PERFORMANCE BOND / CONTRACT SECURITY)

57.1 EARNEST MONEY / BID BOND / BID SECURITY

57.1.1 Against each tender, subject to the proviso as given in para 57.1.2, the
Earnest Money / Bid Bond / Bid Security is to be obtained so that the
Bidder does not withdraw his offer within the validity period thereby
causing inconvenience to the department. It will be made clear in the
Bidding document that earnest money / bid bond / bid security of those
bidders who withdraw their bids during validity of offer, will be forfeited.

57.1.2 Fixed amount of earnest money / bid bond / bid security, will be worked out
on the basis of expenditure sanction for complete tender as well as unit-wise
group-wise expenditure sanction and indicated in Bidding document for
submission by the bidders.

57.1.3 When the Bids are invited on quantity basis like weight in respect of
chemicals, the EMD / Bid Bond / Bid Security will be indicated for 25%,
50%, 75% and 100% quantity.

57.1.4 (MM/8/2003 dated 02.04.03)

The amount of EMD / Bid Bond / Bid Security for complete tender and
unit(s)/group of items(s)/quantity will be worked out on following slab basis for
indicating the same in bidding document of the same in bidding document for
obtaining of the same from bidders:

Amount of expenditure sanction Amount of EMD/Bid Bond/Bid Security

(Rs in Lakhs)
>5 <=500 @ 2% of expenditure sanction

>500 <=1500 Rs 10.00 Lakhs+1-1/2% on amount exceeding

Rs 500 Lakhs

>1500 <=2500 Rs 25.00 Lakhs+1% on amount exceeding Rs

1500 Lakhs

> 2500 Rs 35.00 Lakhs+1/2% on amount exceeding Rs

2500 Lakhs

(MM/24/2006 dated 24.07.2006)

However, the maximum limit of EMD/Bid Bond/Bid Security for a tender shall be US$
0.5 million for foreign bidders and Rs 2 crores for Indian bidders.
(MM/56/2010 dated 11.10.2010)

57.1.5 The bidders should offer full quantities of goods or Services for each of the
tendered item or category or group wherein the item or category or group is to be
evaluated separately.

Bidders can however quote for part quantity , if this condition is incorporated in the
BEC with the approval of CPA.

In case the bidders are allowed to quote for part quantity, the bidders can send EMD/
Bid Security according to the quantity offered (not exceeding the EMD / Bid Bond /
Bid Security specified for entire tender). In such event, the amount of EMD/Bid Bond
for part quantity must be indicated in Bid Evaluation Criteria.

(MM/68/2012 dated 05.10.2012)

No earnest money / bid bond / bid security in the form of Bank Draft or in lieu thereof
Bid Bond will be necessary for purchases upto Rs. 5.00 lakhs. Earnest money /
bid bond / bid security in the form of Bank Draft or in lieu thereof Bid Bond will also
not be necessary for purchases from Central Govt. Departments and Central Public
Sector Undertakings and for buys of spares or stores / capital items /
equipment of proprietary nature from Original Equipment Manufacturers / Authorised
Dealers/Distributors/ Stockists of Original Equipment Manufacturers. No earnest
money shall also be necessary for purchase / service contracts on nomination basis.
The firms registered with ONGC will also be exempted from payment of earnest
money / bid security or in lieu thereof for furnishing of bid bond for buys against
limited tenders provided normal tendering procedure is adopted. In Registration
Certificate also it will be made clear that the facility for exemption from payment of
earnest money / furnishing of bid bond / bid security will be available in normal
limited tenders only in case purchase is against normal tendering procedure.
MSEs registered with District Industry Centers or Khadi and Village Industries
Commission or Khadi and Village Industries Board or Coir Board or National Small
Industries Corporation or Directorate of Handicrafts and Handloom or any other body
specified by Ministry of MSME will be exempted from furnishing bid bond / bid
security / earnest money against open and limited tenders irrespective of monetary
limit mentioned in their registration certificate provided they submit evidence that
they are registered for the item(s) they intend to quote.

57.1.6 (SP/1/99 dated 07.05.99)

EMD / Bid Security can be obtained from bidders in any one of the following
modes:

(i) Bank Draft in favour of ONGC valid for 180 days from the date of issue
of the same.
(ii) Bank Guarantee from banks acceptable to ONGC, valid for 30 days
beyond the required validity of bid.
 (iii)
Irrevocable letter of credit (as per prescribed proforma) valid for 30
days beyond the required validity of bid, duly confirmed by Indian
Nationalised / Scheduled banks will be acceptable only from foreign
bidders.
(iv) Cashier’s / Banker cheques valid for 180 days from the date of issue of
the same will be acceptable form foreign bidders only.
(MM/56/2010 dated 11.10.2010)

57.1.7 Subject to provision in para 57.1.5 above, offers without earnest money /
bid bond / bid security will not be considered and summarily rejected. The
condition of furnishing earnest money / bid bond / bid security will not be
relaxed / waived and it would be preferable to go for a re-tender.

For relaxation of condition relating to Bid Security, prior to invitation of bid, the
cases (where exigencies of work so require) are to be put up to concerned
Level-1 Executive upto his purchase powers. Concerned Director has full
powers in this regard.

(Authority: Item R6 and MP11 of BDP-2009)

57.2 SECURITY DEPOSIT / PERFORMANCE BANK GUARANTEE /

CONTRACT SECURITY

(MM/66/2012 dated 03.05.2012)

57.2.1 Security Deposit / Performance Bank Guarantee / Contract Security will

be obtained as per following monetary limits:-

(i) Contracts for Turnkey 10% of Contract Value.

Project Construction /
platforms.

(ii) All type of service / Rig 10% of one year's contract value. (for rig
hiring contracts. hiring contracts one year’s contract value
shall be the Effective Day Rate based on
which bids were evaluated x 365 days).
In case of contracts with primary term of
two or three years, the Performance Bank
Guarantee / Contract Security will be
obtained with initial validity for two or
three years as the case may be.

(iii) Supply of goods other 7.5 % of order/contract value.

than Casing Pipes.

(iv) Supply of Casing Pipes. 10% of order/contract value.

(MM/68/2012 dated 05.10.2012)

57.2.2 No security deposit / contract security or in lieu thereof Performance Bank
Guarantee will be necessary for purchases upto Rs.1.00 lakh. Also security
deposit / Contract Security or in lieu thereof Performance Bank Guarantee will not
be necessary for buys of spares or stores / capital items / equipment of
proprietary nature from Original Equipment Manufacturers / Authorised
Dealers/Distributors/ Stockists of Original Equipment Manufacturers. The
Security Deposit / Contract Security or in lieu thereof Performance Bank
Guarantee will invariably be obtained even from the Public Sector Undertakings
and / or firms registered with ONGC / DGS&D / MSEs registered with District
Industry Centers or Khadi and Village Industries Commission or Khadi and Village
Industries Board or Coir Board or National Small Industries Corporation or
Directorate of Handicrafts and Handloom or any other body specified by Ministry of
MSME and against development orders.

(MM/60/2011 dated 03.06.2011)

57.2.3 In case the firms give their security deposit / contract security /
Performance Security in the form of Bank Guarantee, it will be ensured that
only Bank Guarantee given by any of the Nationalized Bank or Scheduled
Bank or State Bank of India and its wholly owned subsidiaries are
accepted. In case of import purchase, Bank Guarantee from a Bank
acceptable to ONGC will be required.

(MM/56/2010 dated 11.10.2010)

57.2.4 For offers with shortfall in EMD/bid bond amount, an opportunity can be given
to the bidder to submit additional bid security/bond or amendment in the bid
bond for meeting the shortfall in the bid security amount. This opportunity can
be given to the bidders with the approval of L1, who will have full powers in
this regard.

57.3 Provision deleted vide MM/52/2010 dated 03.05.2010

57.4 Release of Security Deposit / Performance Bond / Contract Security

(MM/48/2009 dated 04.11.2009)

57.4.1 All concerned authorities shall ensure that details of all claims which are to
be recovered from the supplier / contractor are promptly intimated to the
respective payment authority, without any loss of time, so that the claim can
be recovered before releasing the pending payment(s).

Details of such claims should also be forwarded to the authority who has
concluded the respective purchase order / contract / rate contract and has
obtained the Contract Security. After completion of the supplies / execution
of the contract, the respective authorities as mentioned below should take
prompt actions in respect of the following:
(i) In case of purchase of goods, for recovery of any claims other than
discrepancies / recoveries indicated in the GRV, the respective
consignee(s) [including port consignee / C&F section etc.] should
forward the details of claims which are to be recovered from the
supplier, to the respective purchase officer, immediately after
completion of supplies against the purchase order, i.e. within 15 days
after receipt of last lot of material. Even if there is no claim against a
particular purchase order, the consignee(s) should forward a ‘No
Demand Certificate’ to the respective purchase officer within the
stipulated time as above.

(ii) Wherever installation and commissioning is also involved alongwith

supply of the equipments, Indentor should ensure installation and
commissioning within the stipulated time for the same (by keeping the
site ready well before arrival of the equipment, by drawing the
equipment immediately after arrival at stores and by coordinating with
supplier for timely completion) and forward a copy of satisfactory
installation and commissioning report alongwith details of outstanding
claims (if any) or a ‘No Demand Certificate’, to the authority who has
concluded the respective purchase order / contract, within 15 days
after completion of installation and commissioning of the equipment
satisfactorily.

(iii) In case of centrally finalized rate contracts, for which the Contract
Security is obtained centrally for the entire contract, In- charge MM of
each work center should forward details of Purchase Orders placed
against each of such rate contracts to the authority which has
concluded the rate contract. Further, in respect of each such order
which has been placed against the rate contract, In- charge MM of the
work center shall send the details of outstanding claims (if any) or a ‘No
Demand Certificate’, to the authority who has concluded the rate
contract within 15 days after receipt of the last lot of material.

(iv) In case of Service Contracts, Indentor should forward details of

outstanding claims (if any, which could not be recovered from the
regular payments) or a ‘No Demand Certificate’, to the authority who
has concluded the respective contract, within 15 days after expiry of
the contract period.

(v) In case of LSTK contracts, in which Contract Security is obtained to

cover the warranty period also, Indentor should forward details of
outstanding claims (if any) or a ‘No Demand Certificate’, to the
authority who has concluded the respective contract, within 15 days
after expiry of the warranty period.

In all cases, wherever the claims are to be recovered from the Contract
Security, it should be ensured that the claims with complete details are
forwarded to the concerned aurhority(ies) well before the expiry of the validity
of Performance Bond.
 Under exceptional circumstances, in case where above details can not be
furnished within the stipulated time, approval of concerned L1 executive
should be obtained by the respective authority(ies) (i.e. Consignee/In-charge
MM / Indentor, as the case may be) giving full reasons necessitating
additional time for furnishing ‘No Demand Certificate’. Such approval should
be forwarded to the concerned purchase officer / contract concluding authority
for obtaining suitable extension for the validity of Performance Bond.

57.4.2 On receipt of intimation regarding claims for recovery (if any) / ‘No Demand
Certificate’, as per para 57.4.1 above, the concerned purchase officer /
contract concluding authority shall verify whether the claims have already
been recovered from the payments. After release of final payments, if any
claims are outstanding for recovery, necessary action should be initiated to
recover the same from the Contract Security.

Thereafter, for the release of Contract Security (after recovering the claims if
any as mentioned above), the approval shall be obtained as per para 57.5
below. Accordingly, necessary advice shall be issued to the concerned
Finance section for releasing the Security Deposit / Performance Bond.

57.5 Release of Earnest Money / Bid Security / Bid Bond / Security

Deposit / Contract Security / Performance Bank Guarantee

(MM/33/2008 dated 29.04.2008)

The Competent Purchase Authority (who has approved award of contract) will
have powers to approve release of earnest money / Bid Bond / bid security
/ security deposit / contract security performance bank guarantee.
However, concerned L-1 Executive will have full powers in this regard,
irrespective of the type of tender or value of tender / order / contract, including
for cases falling within the powers of Directors and EPC.

(MM/56/2010 dated 11.10.2010)

57.6 Invoking/forfeiting of Bid Security / Contract Security / Bank guarantees

Approval of Level-1 executive will be obtained for invoking / forfeiting the Bid
Security / Contract Security / Bank Guarantee(s) for non-EPC cases. For
EPC level cases, approval of concerned Director shall be obtained.

(Authority: Item R9 and MP14 of BDP-2009)

PROVISIONS AS PER VARIOUS GOVT./STATUTORY
GUIDELINES
(MM/53/2010 dated 17.05.2010)

58. PROVISION AS PER VARIOUS GOVT./STATUTORY GUIDELINES

Provisions at para 58.1, 58.1.1, 58.1.2, 58.1.3, 58.2, 58.2.1, 58.2.1, 58.2.1.2,
58.2.1.3, 58.2.1.4 and 58.2.5 deleted vide MM Manual amendment No.
MM/61/2011 dated 14.06.2011. Remaining paras re-numbered.

58.1 Turnkey Projects

The domestic bidders would be entitled to a price preference of 10% over

the lowest acceptable quoted foreign bid.

58.1.1 Oil Field Services

Domestic bidders providing oil field services in the global tenders will be
entitled to a price preference of 10% over the lowest acceptable (quoted)
foreign bid.

58.1.2 The above Price Preference would be used for the purpose of evaluation of
bids only and the order on the Indian party will be placed on the basis of
quoted price if the same happens to be upto or lower than the limit of price
preference.

58.2 In the case of purchases / services under World Bank financing, price
preference, as per guidelines issued by the World Bank, will apply.

58.3 Price / purchase preference to the products of Small Scale Sector

(SSS).

As per Govt.'s policy certain items are to be purchased exclusively from

Small Scale Sectors. For other items too price preference upto 15% has to
be given to the Small Scale Sectors registered with NSIC as per Govt.'s
instructions provided the products of Small Scale Sectors are otherwise
acceptable in terms of quality and specifications. The quantum of price
preference will be decided on the merit of each case in consultation with
attached Finance.

(Authority: DSP/C&P/13(13)/70/81 dt.13.3.81)

(MM/53/2010 dated 17.05.2010)

58.4 Purchase of ‘Lead Acid Batteries’ with provision for ‘buy-back’ of the
used batteries by the supplier.

58.4.1 As per ‘The Batteries (Management and Handling) Rules, 2001’, consumers
of lead acid batteries are required to dispose the used batteries, only through
depositing with the dealer/ manufacturer/ importer/ assembler/ registered
recycler/ re-conditioner of the lead acid batteries or at the designated
 collection centres. Likewise, it is obligatory on the part of the manufacturer /
dealer of the lead acid batteries to collect the used batteries from the
consumer.

58.4.2 Accordingly, following procedure shall be adopted while procuring new ‘lead
acid batteries’, for replacing the condemned, used and unserviceable
batteries of similar type and specifications:

(i) In tenders for procurement of new batteries, bidders should be asked to

quote for ‘buy-back’ of the used batteries of similar type and specifications.
The location of the old batteries should be indicated in the tender, so that
bidders can asses the condition of the batteries, for quoting ‘buy-back’ prices
for the same on ‘collection from the location’ basis.

(ii) Evaluation of offers for new batteries will be carried out based on “Net cost’
for each battery, arrived at as under:

‘Net cost’ for each battery = (cost of each new battery + all taxes and duties)
– (value offered for each used battery)

(iii) Even for the order placed against DGS&D rate contracts, the concerned
vendor should be insisted to submit his offer for buy-back of used batteries.

(iv) Accordingly, the purchase order for new batteries shall be placed, by
indicating the ‘Net Amount’ payable after deducting the value offered for used
batteries. Further, for the purpose of accounting and discharging Tax
liabilities, a separate ‘Sale Letter’ shall be issued for the used batteries (by the
same authority who issued Purchase Order for new batteries), by keeping
provisions for adjusting the deducted amount against the supplies (of new
batteries) as the value for the used batteries.

(v) On receipt of new batteries and adjustment of value for used batteries (in
the payment), concerned Purchase Officer shall issue a ‘Delivery Order’
(addressed to indentor, with copies endorsed to Vendor and the concerned
sections - viz. Finance, Disposal and Security), so that vendor can collect the
used batteries from the locations.

(vi) Accordingly, indentor shall hand over used batteries to the vendor against
proper receipt and Gate Pass (issued on the authority of the Delivery Order).

(vii) Indentor shall forward copies of receipt obtained from the vendor to
Finance and Disposal section for regularization of the sales proceeds and
also for inclusion in the returns to be filed with Sales Tax authorities.
COMPARATIVE STATEMENT
59. Comparative Statement

59.1 After all the quotations have been opened, these will be handed over to
the section concerned for making comparative statement.

(MM/33/2008 dated 29.04.2008)

59.2 All the bids received in respect of an enquiry or advertisement should be

tabulated in the comparative statement (in the standard from (STR-13)
prescribed for this purpose). All details required will be entered in the
statement. For the tenders invited under ‘Two bid’ system, Comparative
Statement should be prepared at each stage (i.e. after opening of techno-
commercial bid and price-bid) and duly vetted by Finance as per provisions
under para-59.9 below.

(MM/42/2009 dated 08.07.2009)

59.3 Every section will ensure that the comparative statement is prepared
within shortest possible time, not exceeding 04 days of the receipt of the
quotations after techno-commercial bid opening and not exceeding 03 days
after price bid opening.

59.4 The local Bids which are received after the due date and hour are not to be
considered. Similarly, all quotations dispatched by the outside Bidders
after the due dates are also not to be considered. These will not be
entered in the comparative Statement.

59.5 The comparative statement will be prepared and signed by the concerned
Store Keeper / Dealing Asstt ./ Dealing Officer.

(MM/33/2008 dated 29.04.2008)

59.6 At the techno-commercial evaluation stage, the comparative statement

should be objectively prepared covering all the techno-commercial points of
the tender required for evaluation. Compliances and non compliances against
all the requirements of BEC and the deviations / exceptions (if any) should be
clearly spelt out in the comparative statement.

At the price-bid evaluation stage, it should be ensured that the rates

mentioned in the comparative statement are in one unit so that comparison
can be made at a glance. The final evaluation prices for each bidder should
be worked out as per evaluation criteria and to be tabulated in the
Comparative Statement, after taking into account all the charges / statutory
levies, which are to be paid by ONGC.

59.7 The comparative statement will be checked and signed by the officer of
Materials Management as per monetary limits indicated below before the
same is submitted with details / due recommendations to Tender Committee
/ Competent Purchase Authority:
 Monetary Value Officers

Upto Rs. 7.5 lakhs Materials Management Officer. In case

comparative statement is prepared by
the Materials Management Officer, the
comparative statement should be checked
at the level of Sr.MM Officer.

Above Rs. 7.5 lakhs Sr. M.M. Officer

to Rs.35 lakhs.

Above Rs.35 lakhs Dy.Manager(MM)

to Rs.75 lakhs

Above Rs.75 lakhs Manager(MM)

59.8 The above check will be exercised by respective officers as far as

possible. In the event an officer of the required level is not available, an
.Officer immediately next below level would exercise the check.

59.9 All comparative statements for tenders exceeding the value of Rs.50,000/-
will be referred to Finance for scrutiny. The monetary limits of different
levels of Finance and Accounts Officers for checking the comparative
statement will be as under:

i) Upto Rs.7.5 lakhs Finance & Accounts Officer

ii) Above Rs. 7.5 lakhs Sr. F&A Officer

to Rs.35 lakhs

iii) Above Rs. 35 lakhs Dy.Manager(F&A)

to Rs.75 lakhs.

iv) Above Rs.75 lakhs Manager(F&A)

59.10 The above checks will be exercised by respective officers as far as

possible. In the event of an officer at the required level is not available, an
officer immediately next below level would exercise the checks.

(MM/42/2009 dated 08.07.2009)

59.11 The comparative statement will be checked by the associated Finance. The
comparative statement will invariably be vetted within shortest possible time,
not exceeding 04 days of its receipt in Finance. Each page of the
comparative statement will be initialled by both the Materials Management
Officer and the Finance & Accounts Officer as per above Monetary limits.
59.12 The vetting of the comparative statement by Finance will, however, not
absolve the Department originally preparing the comparative statement
from the responsibility.

(MM/42/2009 dated 08.07.2009)

59.13 In the cases where Tender Committee is required to be held, a copy of the
Comparative Statement should be made available to the members of the
Tender Committee at least 48 hours before the first meeting of the committee
alongwith a covering docket containing the following information:

i) Name of the indenting department.

ii) Estimated expenditure.
iii) Whether expenditure sanction by the Competent Authority has
been accorded.
iv) Have normal tendering procedure as applicable been followed? If not,
brief reasons thereof.
v) Has normal time been allowed to the bidders for quoting their rates? If
not, reasons therefore.

However, for subsequent meetings of Tender Committee, copy of CS and

such details are not required to be sent to TC members in advance.
TECHNICAL CLARIFICATIONS / COMMENTS
60. CLARIFICATION FROM BIDDERS AFTER TENDER OPENING

(MM/40/2009 dated 30.06.2009)

60.1.1 As a principle, clarifications from bidders after opening of tenders are to be

avoided in single bid system and after price bid opening in two bid system.

60.1.2 At the techno-commercial bid evaluation stage (under two bid system) also,
post tender clarifications should be avoided, as far as possible. In case
implied clarifications / confirmations exist in the bid on the issues involved,
work center may consider processing of the bid further on the basis of such
implied confirmations.

However, in case after opening of un-priced techno-commercial bids, if it is

observed that clarifications from the bidders on important techno-commercial
aspects are necessary for enhancing competition in the tender, one
opportunity shall be given to them for submission of
clarifications/confirmations/deficient documents. Wherever TC is required, it
will deliberate specifically on the issues requiring clarifications and submit
their recommendations to the CPA for approval for asking the bidders to
submit clarifications/ confirmations/deficient documents. Concerned Key
Executive (Level I-A/B/C/D/E/F) will have full powers to approve seeking of
clarifications/confirmations/deficient documents from the bidders even for
cases falling within the powers of Directors and EPC.

(MM/58/2011 dated 21.03.2011)

60.1.2.1 In OEM/OEC cases, bidder can be asked to withdraw the exceptions and
deviations taken by them to ONGC’s standard terms and conditions by the
dealing officer in MM after obtaining the approval of I/c MM directly without
holding TC.

(MM/40/2009 dated 30.06.2009)

60.1.3 With a view to widen competition in the tender, decision would need to be
taken on case to case basis as to whether one more round of clarifications
need to be sought from the bidders. In that case, TC will deliberate specifically
on the issues requiring second round of clarifications/ confirmations/ deficient
documents and submit their recommendations to CPA for approval for asking
the bidders to submit clarifications/ confirmations/deficient documents after
recording proper justification for the same. However, concerned Key
Executive (Level I-A/B/C/D/E/F) shall have full powers to approve seeking of
upto two rounds of clarifications / confirmations / deficient documents,
including in cases falling within the powers of Directors and EPC.

60.1.4 Clarifications should be sought from bidders, by specifying a reasonable cut-

off time for submission of clarifications/ confirmations/ deficient documents.
Sufficient time should be given to the bidders to submit their responses
depending upon the nature of clarifications/confirmations/deficient documents
 which are required to be submitted. However, in the event of an unscheduled
holiday falling in the specified day of the ‘cut off time‘, the next working day
shall be treated as the ‘cut off time’. In all other situations, if an extension for
the ‘cut off time’ is felt necessary based on requests receive from the
bidder(s), approval should be obtained from CPA. For cases falling under the
powers of Director/EPC, approval of concerned Director shall be obtained.
Such approval for the same should be obtained before the expiry of the
specified ‘cut off time’ and the decision should be communicated to all the
bidders from whom the clarifications/conformations/deficient documents have
been sought.

60.1.5 Clarifications/confirmations/deficient documents which are received after the

specified cut-off date should be considered only in exceptional situations
depending upon merit of the case, where at least two clear TA/CA offers are
not available, with the approval of the authority next higher to the CPA, after
recording detailed justification for considering such offers. For cases falling
under the powers of Director/EPC, approval of concerned Director shall be
obtained.

60.1.6 Any technical clarifications/confirmations/deficient documents required by the

User/Indenting Department should be routed through concerned Materials
Management.

60.2 (Provision deleted, MM/10/2003)

60.3 (Provision deleted, MM/10/2003)

61. CORRESPONDENCE WITH SUPPLIERS BY INDENTORS

61.1 Before finalisation of the tender, all correspondence with the bidders must be
done by concerned Materials Management. However, after placing supply
order / contract, if considered necessary, the indentor(s) may interact with
supplier(s) / contractor(s) for any clarification provided the same does not
result into modification of any condition of supply order / contract and does
not involve financial implications. However, copy of such correspondence
must be marked to MM Department for record.

61.2 It must be ensured that clarifications asked for by the Indentor(s) did not
have any bearing on the price aspect.

62. TECHNICAL COMMENTS ON OFFERS

62.1 In all cases where technical evaluation is involved, the offers shall be
referred to the indentor and its comments put up to tender committee.

(MM/42/2009 dated 08.07.2009)

62.2 7 (Seven) days time will be allowed to Indentor / User to furnish the Technical
Comments. It will be ensured by the User Deptt. that comments are invariably
 furnished within specified time. Indentor / User will be fully responsible for the
acceptability of the materials recommended for purchase. If their
recommendations are at variance with the specifications laid down in the
bidding document, they will clearly specify and indicate the difference and
acceptability.

62.3 The Indentor's representative of Tender Committee shall scrutinize the

quotations (already forwarded to the technical section), in advance from the
technical angle before attending the Tender Committee meeting.

62.4 Level for technical comments on offers

62.4.1 In case of purchase of general nature of items such as bulbs, tubes and
stationery, technical comments will not be necessary. In other cases,
technical scrutiny and evaluation of offers will be done and comments
thereon made at the level at which the tender committee in the case is to
be held.
TENDER COMMITTEE
(MM/56/2010 dated 11.10.2010)

63. FORMATION OF TENDER COMMITTEE AND ITS MONETARY LIMITS

63.1 No Tender Committee will be held for cases valuing upto Rs 5.00 Lakhs. All
procurement cases (including finalization of Rate Contracts), valuing above Rs.
5.00 Lakhs, will be referred to Tender Committee. However, TC is not required
for placement of individual orders against DGS&D and ONGC rate contracts.

TC is also required to be held for carrying out price negotiations with bidders in
all cases, irrespective of the value of the case.

(Authority: Note No. 17.12 and 17.13 under Appendix -1 of BDP-2009)

64. SINGLE ITEM / GROUP OF SIMILAR ITEMS

"Single item" or a "Group of similar items" is defined as follows:

a) Single item

One capital item (other than furniture) and or its assemblies and
components or stores like barytes, bentonite, cutch, CMC, Mica etc.
are single items, although they form a group of stores e.g. mud
chemicals. Similarly, shoes and chappals are two single items.

b) Group of similar items

Furniture, spares for one type of vehicle etc. e.g. jeep spares and
TMB spares are two group of items.

65. CONVENING OF TENDER COMMITTEE

The concerned Materials Management will convene the tender committee.

66. BRIEF FOR AND LEVEL OF TENDER COMMITTEE

(MM/58/2011 dated 21.03.2011)

66.1 Constitution of Tender Committee:

The following levels of MM & Finance officers and indenting Deptt. shall form part
of the Tender Committees:

Sl Accepting Authority TC Level

1 Level-I or above In-charge MM / Head Central Purchase under
Chief MM, In-charge Finance and Level II of
User Department.
2 In-charge MM Second Level MM Officer #, Second Level
Finance Officer# and Officer of indenting dept
of corresponding Level
3 Second Level MM MM Officer E-4 Level , Finance Officer and
Officer Officer of indenting Dept. of corresponding
level
4 Other MM Executive MM Officer E-3 Level, Finance Officer and
(E-4 & above). Officer of indenting dept. of corresponding
level.

Note:

(i) # Second level officer in MM and Finance as designated at the work center

(ii) The level of TC and CPA will be with reference to sanction value or tender value
whichever is higher. However, after opening the price bids, if the evaluated price
of lowest bid / bids is higher than the tender value and the tender accepting
power is not within the power of original CPA, then the CPA and TC level will be
raised to appropriate higher level.

(iii) If the required level of TC member is not posted/ not in station (on leave/tour) at
a work centre then the TC member will be of the next lower level available and
/or as nominated by the Tender accepting authority. Level–I shall have full
powers in such cases.

(iv) In case of turnkey projects wherever indentor is not end user and requirement is
for use within the work centre then end user will also be a member of tender
committee.

(v) For items/services under centralised procurement, officers posted in Technical

cell attached with the respective set-up for centralised procurement shall carry
out the Technical evaluation and also can be TC members as representatives
of Indenting Deptt. However, due to technical complexity of the item/service
being procured, if In-charge of the Technical cell feels necessary, he can put up
the case to the respective Chief of Services/concerned Head of the Deptt. for
Technical comments and can also co-opt a representative of the concerned
Service as a member of the TC with the approval of the respective Chief of
Service/Head of the concerned Deptt.

(vi) For all other items/services also, TC will continue to have only three members.
Wherever Indenting department and User department(s) are different,
depending on technical complexity of the item/service being procured, Indenting
Department can co-opt for having a representative from User department also in
the TC.

(vii) For OEM/OES/PAC/ cases where tender value is upto 5% / 1% of the open
tender acceptance powers of Level-1 executive as per BDP item MP4 (a), TC
shall be held at the level of 2nd level MM Officer / MM Officer E-4 level
respectively as stated at Sl. No. 2/ Sl. No. 3 above. In such cases, TC
 recommendations shall be put upto CPA (Level-1 executive) for approval
through I/c MM.

(Authority: Note-3 under “Note common for MP4(a to f)” of BDP-2009)

(MM/56/2010 dated 11.10.2010)

66.2 Tender Committees should invariably be held when the same is scheduled. In
case any of the TC members proceeds on leave / tour, he may authorize in writing
the next subordinate senior most officer available in station to attend the TC
meetings during his absence and to sign the TC proceedings.

66.3 The concerned dealing officer will prepare brief for perusal of all members of
Tender Committee wherein complete details of case will be brought out.
Such a brief, duly signed, will be given to members of Tender Committee
well in advance of the meeting. This will, however, in no way, dilute the
responsibilities of the tender committee.

67. EVALUATION OF BIDS BY TENDER COMMITTEE AND

PREPERATION OF TENDER COMMITTEE PROCEEDINGS

(MM/8/2003 dated 02.04.03)

67.1 Tender Committee will examine the bids to prepare its recommendations for
submission to the authority competent to accept the tender. Where a higher
bid is recommended, under exceptional circumstances adequate reasons in
support of recommendation will be recorded.

(MM/42/2009 dated 08.07.2009)

67.2 It will be ensured by all TC members that Tender Committee proceedings are
signed immediately on completion of the meeting, not exceeding 3 days from
the date of the meeting.

68. ACCEPTANCE OF RECOMMENDATIONS OF TENDER COMMITTEE

(MM/06/2002 dated 23.04.02)

68.1 Competent Purchase Authority can either approve or disapprove the

recommendations of TC or give written directives for reconsideration of its
recommendations.

(MM/56/2010 dated 11.10.2010)

68.2. The Competent Purchase Authority will be empowered to accept unanimous /

majority recommendations of Tender Committee. When the unanimous / majority
recommendations of the Tender Committee are not acceptable, or when the
recommendations are divided equally (in case of even number of members), the
Competent Purchase Authority shall refer the case to the authority one step higher
but with his recommendations. The authority next higher to the CPA with the
concurrence of Finance at commensurate level, will be empowered to take
decision.

(Authority: Item MP4(g) of BDP-2009)

EXECUTIVE PROCUREMENT COMMITTEE
69. Proposals to Executive Procurement Committee (EPC)

69.1. (MM/8/2003 dated 02.04.03)

(i) Issue relating to any major modification or clarification in the Materials

Management policy of ONGC may be referred to the Executive Procurement
Committee (EPC) [consisting of full time Directors as members and C&MD as
Chairman of the Committee] for its advice / decision. However, before
reference to EPC is made, endorsement of Director In-charge (MM) will be
obtained.

(ii) In EPC level cases, approval of EPC will be required on the BEC to be
followed for tender except in cases wherein earlier EPC approved BEC is
proposed to be adopted for which purpose the approval of concerned Director
will be obtained. (Provisions of para 24 of this Manual refers in this regard]

(iii) In all cases exceeding powers of Director, after price evaluation of short-listed
bidders, purchase approval of Executive Procurement Committee (EPC) will
be obtained, after endorsement by Director – in charge.

The EPC will meet regularly depending upon number of cases to be

considered. For EPC meetings, while all functional Directors are envisaged to
participate, due to exigencies of work if some Director(s) is / are not present,
minimum quorum consisting of C&MD, concerned Director, Director In-charge
(MM) and Director (Finance) may consider and approve the proposal(s). For
EPC meeting, self explanatory brief, duly signed by the Tender Committee
members (Chief of Materials, in case of Policy issues) along with relevant
documents will be sent to EPC Cell for examination through concerned Asset
Manager / Basin Manager / Chief of Services / Head of Institutes / Regions
for cases at Assets / Basins, etc [Director In-charge (MM) for policy matters].
The concerned Asset Managers / Basin Managers / Chiefs of Services /
Head of Institutes / Regions for cases at Assets / Basins / Services / Institutes
should obtain the concurrence of the respective Head of Finance (if the Head
is already not a member of the tender committee) and endorsement of the
concerned Director before sending the agenda brief to EPC. The brief should
be sent well in advance before the expiry of validities keeping in view that
sufficient time is available to the EPC Cell for examination of case. EPC Cell
will examine the proposal(s) and seek clarification(s) from the concerned work
centre(s) wherever considered necessary. A copy of brief will be circulated by
EPC Cell to all members of EPC as well as to C& MD, ONGC for perusal.
The EPC Cell will take action as indicated in para 70 below.

69.2 It will be ensured by concerned work centre that all procedural aspects have
been taken care of before submitting cases to Executive Procurement
Committee.
(MM/8/2003 dated 02.04.03)

70. Minutes of discussion of Executive Procurement Committee

70.1 The Executive Procurement Committee Cell will circulate amongst EPC
members a copy of agenda brief and after discussions of the case in the
meeting, will prepare draft record note of the Executive Procurement
Committee meeting (within 3 working days if summary is not to be prepared
and 5 working days if summary is to be prepared) and circulate the same
through Chief-CP to all the EPC members for their comments. Comments if
any, are to be given by EPC Members on the draft Record Note to the EPC
Cell within two working days. The draft Record Note will be modified by EPC
cell based on the comments received from EPC members and thereafter, the
final draft will be submitted to C&MD for approval through the concerned
Director. Upon approval of the Record Note by C&MD, EPC cell will forward
the approved Record Note to all the EPC members and also to the concerned
work centre for taking further action. However, the present practice of issue
of the summary of EPC decision with the approval of concerned Director, will
remain unaltered, but summary would be issued in respect of urgent cases
only based on the discussions in EPC meeting.

In case of urgency, EPC meeting can be held in the absence of C&MD who
would authorize the senior most Director (other than the Director concerned
whose proposal is under consideration) to Chair the meeting in his absence.
The Draft Record notes will be put up to the Director who chaired the EPC
meeting for his consideration and approval. However, the Record Note of
discussion of such EPC meeting(s) will be put up to C&MD for information.
Similarly, in case Director concerned is unable to attend the EPC meeting, he
may request another functional Director to represent him in the EPC meeting
for the case.

70.2 (Provision deleted, MM/8/2003)

70.3 (Provision deleted, MM/8/2003)

CONSIDERATION OF OFFERS
71. Consideration of offers

71.1 The following points should be taken into consideration for placement of
an order:-

i. Normally the orders are to be placed on the lowest Bidder.

ii. If the lowest Bidder does not comply with the tender stipulation, his
bids should be rejected.

71.2 Bids which do not conform to the specifications are to be ignored

straightaway. Lowest bid may be determined from among those tenders
which are in full conformity with the specifications.

72. Purchase of Machinery and Equipment

When deciding orders for the procurement of "Machinery and

Equipment" it has to be ensured that orders are placed only on the
manufacturers or their authorised dealers licensed by the Government for
production under the Industries Development and Regulation Act, 1951.

73. Purchase of Capital items and spares therefor

(MM/57/2011 dated 01.03.2011)
73.1 Normally, for purpose of comparison of the prices quoted for the main plant
and equipment, the prices of spares will not be taken into account.

73.2 However, for regularly procured equipment where requirement of fast moving
/ critical spares is considered necessary for one or two years operation of the
plant and equipment and the same can be estimated based on the past
experience, the list of such critical spares with quantity should be included in
the tenders and the cost of only those spares should be considered for
evaluation purpose alongwith the main plant and equipment. In such cases it
should be made clear to the bidders that they should quote the prices for
each item of the spares separately.
LATE TENDERS
74. LATE TENDERS

74.1 All bids received after the notified time and date of closing of tenders will
be treated as late tenders.

74.2 Unsolicited alterations or modifications of tenders received after the notified

time and date of closing of the tenders shall not be entertained.

(MM/65/2012 dated 02.02.2012)

74.3 Late tenders, as defined in para 74.1 above, shall not be considered. Such late
tenders, after recording with the concerned Materials Management officer, will
be returned un-opened to the concerned bidder(s) within a period of seven days
from the due date of opening of tenders.

However, in case of purchase from OEM or their authorized

Dealers/Distributors/ Stockists on single tender basis under exceptional
circumstances, such late offers may be considered by extension of tender
opening dates with the approval of CPA. For EPC level cases as well as cases
falling within the power of concerned Director, concerned L-1 officer shall have
full power to approve extension of tender submission date for consideration of
such late offers.
SPLITTING OF TENDRS / SUPPLY ORDERS
75. SPLITTING OF TENDERS / SUPPLY ORDERS

75.1 While tenders are generally considered on an itemwise basis and the
practice is to split these items where necessary and award the contract to the
lowest acceptable bidder on an itemised basis, it is not necessary to split up
where the monetary gain in splitting the of contract is less than Rs.150/-.
The Materials Management Officer acting within his power, will have the
authority to award contract on an overall basis for all items or by grouping
items, provided that the total price paid as a result of doing so does not
exceed by more than Rs.150/- the total price that would have been paid had
the contract been awarded on an itemised basis.

75.2 Items in a tender may be split up in more than one order depending on the
merit of each case. In case of operational needs, tender for part of items
may be finalised with the approval of Competent Purchase Authority for
complete tender. For finalisation of tender for the remaining items, the case
will be submitted to the Competent Purchase Authority for complete tender
reflecting therein the facts that tender for part items in this case has already
been finalised.

75.3 Sometimes it becomes essential to place order simultaneously on two firms to

safeguard against the chance of one of the firms failing to execute supplies or
when material is urgently required and where a single firm cannot supply
the required quantity in time. Where the tenders are being called and the
volume of the purchase is likely to be very large and where it is important
because of this to ensure that no single bidders bites off more than he can
chew merely on the ground that he is the lowest bidders a procedure should
be followed whereby when the tender is floated, bidders are specifically
asked to quote(a) for the whole purchase (b) for a fraction of unit of the
purchase and it is specified in the tender notice that the purchaser will use
his discretion as to the number of units within the whole purchase which
will be given to any one bidder.

75.4 Where there is absolutely no doubt as to the capacity of the lowest

negotiable bidder to supply goods conforming to the specifications within
the delivery time, the order should be placed first upto the full quantity
offered by him, so as to utilise the full capacity. In case there are reasons,
which reasons should be recorded in writing, to believe that the lowest
negotiable bidder cannot supply the full quantity in time, the Materials
Management Officer may distribute the order in such a way so as to
make the purchase as broad based as possible and to ensure timely
supply.
REASONABILITY OF RATES
76. INSUFFICIENT COMPETITION AND REASONABILITY OF RATES

(MM/46/2009 dated 04.11.2009)

76.1 In Limited Tenders which are not published on website (i.e. LTs upto Rs. 5
lakhs), minimum three techno-commercially acceptable quotations must be
available before the tender is finalized. However, if less than three quotations
are received in a case of such limited tender, then the case should be put up to
the authority one level higher than the CPA for further decision.

76.2 Placement of order when one offer is received

If after inviting open / limited tenders (including the tenders mentioned in para
76.1 above), only one quotation is received against the tender, the order
should be placed on the bidder provided the rates are considered reasonable or if the
requirement is urgent.

76.3 Certification of urgency

The urgency of the requirement would be certified by the indentor.

76.4 Reasonability of rates

(MM/60/2011 dated 03.06.2011)

76.4.1 Tender Committee shall be required to establish and certify the reasonability
of rates of L-1 bidder received in a tender. Rate reasonability can be
established in comparison to cost estimates and / or last purchase rate (if
available) and / or price trends prevailing in the market (if the same can be
determined depending on either the type of items being purchased or if there is
any published documents / data reflecting the price trends or if there is
relationship between raw material being used in manufacture of items like steel
is used for manufacture of tubular goods). (When purchase does not fall under
purview of tender committee, dealing officer of MM in consultation with
Indentor and Finance shall ascertain the rate reasonability and put up the
proposals for approval of CPA). Accordingly, the case shall be processed for
finalisation, if the rates of L-1 bidder are considered to be reasonable on the
basis of above analysis. Wherever the rates of L-I bidder are substantially high
as compared to cost estimates / or LPR or not in line with the price trend
prevailing in the market, a decision shall be taken as to whether price
negotiation need to be conducted.

(MM/58/2011 dated 21.03.2011)

76.4.2(a) In OEM/OES cases, budgetary offers need not be considered as basis for
working out cost estimates. Instead, Last Purchase Rate (LPR) of the same
item or similar item with suitable escalation, to take care of increase in cost
 from the date of last purchase, may be considered as basis for working out
reasonable cost estimates. Option of taking budgetary quote from the original
equipment manufacturer/supplier may be resorted to only in situations where
LPR is not available and no other reasonable basis is available for working out
cost estimate.

76.4.2(b)In OEM/OES cases, any correspondence regarding price should be done

only after the TC recommendations are approved by CPA as per para 77.

(MM/46/2009 dated 04.11.2009)

76.4.3 For price negotiations procedure specified vide para 77 will be adhered to.
NEGOTIATIONS
77. NEGOTIATIONS

(MM/28/2007 dated 11.06.2007)

77.1 There should not be any Price negotiations. Negotiations, if at all, shall be an
exception as provided herein below and shall be held with L-1 bidder only.

77.2 Negotiations shall be recommended in exceptional circumstances only after due

application of mind and recording valid, logical reasons justifying negotiations. Price
negotiations shall be undertaken by tender committee, only with L-1 bidder, on prior
approval by CPA not below Level-I and the concerned Director in EPC cases, in any
of the following exceptional situations, where the rates of L-1 bidder are substantially
high as compared to cost estimates:

(i) The items are proprietary in nature;

(ii) The bidders have formed cartel ;

(iii) Sources are limited.

77.3 Negotiations should not be misused as a tool for bargaining with L-1 with
dubious intentions or lead to delays in decision-making. Convincing reasons must be
recorded by the Tender Committee recommending negotiations. Competent
Purchase Authority should exercise due diligence while accepting a tender or
ordering negotiations or calling for a re-tender and the time taken for according
requisite approvals for the entire process of negotiation and award of order should
not exceed 30 days from the date of submission of recommendations. In cases
where the proposal is to be approved at EPC level, a maximum of additional 15 days
shall be allowed. In no case should the overall timeframe exceed the validity period
of the tender and it should be ensured that tenders are invariably finalised within
their validity period.

77.4 In cases where a decision is taken to go for re-tendering due to the

unreasonableness of the quoted rates, but the requirements are urgent and a re-
tender for the entire requirement would delay the availability of the item, thus
jeopardizing the essential operations, maintenance and safety, negotiations would
be permitted with L-1 bidder(s) for the supply of a bare minimum quantity, subject to
acceptance by the bidder. The balance quantity should, however, be procured
expeditiously through a re-tender, following the normal tendering process, after due
examination to see whether review of specification, scope of work and tender
conditions is required in future, to bring more competition.

77.5 Where it is required to have more than one source of supply (due to critical or
vital nature of the item), it is mandatory to pre-disclose the ratio of splitting the supply
(in accordance with prevailing instructions, so as to award maximum quantity to the
L-1 bidder) in the Bid Evaluation Criteria, after due deliberation in Tender Committee.
This must be followed scrupulously.
 77.6 After due processing, if it is discovered that the quantity to be ordered is far
more than what L-1 alone is capable of supplying (in tenders where bidders are
allowed to quote part quantities) and there was no prior decision to split the
quantities, then the quantity being finally ordered should be distributed among the
other bidders in a manner that is fair, transparent and equitable as given below:

(i) If the requirement of tender quantity cannot be met by L-1 bidder, negotiations
will be carried out with the approval of Competent Purchase Authority (CPA). To
expedite the process of negotiations, all other acceptable bidders will be advised to
submit their confirmations in sealed envelopes, to match their rates with those of
evaluated L-1 bidder.

(ii) Sealed covers will be opened in the order of ranking originally established and
in the presence of bidders’ representatives who choose to be present. Bidders who
match their prices with the L-1 bidder would be considered for award on basis of
their original ranking and to the extent of quantity / number offered by them.
Opening of sealed cover will be stopped when the total quantity requirement is met.

77.7 Counter-offers to L-1, in order to arrive at an acceptable price, shall tantamount

to negotiations. However, any counter-offer thereafter to L-2, L-3, etc., (at the rates
accepted by L-1) in case of splitting of quantities (as pre-disclosed in the tender as
per para 77.5 above or due to limted capacity of L-1 bidder as per para 77.6 above)
shall not be deemed to be a negotiation.

77.8 If L-1 bidder backs out, there should be re-tendering in a transparent and fair
manner. The Competent Purchase Authority may in such a situation call for Limited
or Short Notice tender, if so justified in the interest of work, on the basis of
examination and recommendation by Tender Committee.

77.9 For the cases valuing upto Rs 5 lacs also, convening of tender committee is
necessary for recommending and conducting negotiations. The Tender Committee
in such cases shall consist of one officer each from MM, Finance and Indentor at one
level below Competent Purchase Authority. The recommendations of said Tender
Committee shall require the approval of Competent Purchase Authority.

77.10 In respect of cases where World Bank Assistance is involved, the

procedure prescribed by World Bank will be followed.
POWERS
78. Powers for various activities

78.1 Competent Authority for approving various activities shall be as defined

below:

Sl. Activity(ies) Competent Authority

(MM/45/2009 dated 14.10.2009)

1 (i) Scope of Work, Technical Sanctioning Authority.

Specifications, proposed Technical Concerned Level-I executive shall
BEC, Technical part of Special have full powers, including cases
Conditions of the Contract, change of falling under powers of Director/EPC
Specifications as a sequel to Pre-bid
conference.

(ii) Pre-Qualification Criteria (PQC) for Level-II- For tenders valuing between
Limited Tender and the list of bidders Rs. 5 lakhs to Rs. 25 lakhs.
who meet the PQC.
Level-I – For tenders valuing
between Rs. 25 lakhs to their
purchase powers under MP-4(b).

Concerned Director shall have full

powers, including cases falling under
powers of EPC.

(MM/38/2009 dated 24.04.2009)

2 Invitation of Tenders including the type Competent Purchase Authority

of tender to be invited, BEC, Final (CPA). Concerned Director shall
Special Conditions of Contract (which have full powers, including EPC level
are to be enclosed with the tender), cases.
Changes in BEC and other tender
conditions (other than standard
conditions) as a sequel to pre-bid
conference.

Note: Any proposed provisions, which are in conflict with the existing policy/
procedure/ PMC instructions, will require approval of EPC..

78.2 The Head of Materials Management of concerned Business Group and the
other Materials Management Officers are classified as Indenting Officers
for the recoupment of stock items provided the minima, re-order and maxima
limits have been fixed by duly constituted board.
(MM/56/2010 dated 11.10.2010)

78.3 Purchase Powers:

Accept a tender for the procurement of goods (single item or a group of items as
defined in para 64 of MM Manual) / Services / turnkey projects contracts and offer is
technically and commercially accepted:

78.3(a) Against open tender:

Authority Extent of power

EPC and Functional Director As per item ‘F1’ of BDP-2009

Below Board level As per item ‘MP4(a)’ of BDP-2009

78.3(b) Against Limited tender:

Authority Extent of power

EPC and Functional Director As per item ‘F2’ of BDP-2009

Below Board level As per item ‘MP4(b)’ of BDP-2009

78.3(c) (i) Procurement of Proprietary Articles on PAC (Proprietary Article

Certificate) Basis:

Authority Extent of power

EPC and Functional Director As per item ‘F4’ of BDP-2009

Level-I As per item ‘MP4(c) (i)’ of BDP-2009

78.3(c)(ii) Procurement of spares / standby equipment and hiring of equipment

/ services and award of work from OEM/OES:

Authority Extent of power

EPC and Functional Director As per item ‘F-3(a)’ of BDP-2009

Level-I As per item ‘MP4(c) (ii)’ of BDP-2009

78.3(d)(i)-a Against Nomination, in case of operational urgency and/or

reliability:

Authority Extent of power

EPC and Functional Director As per item ‘F-3(d)’ of BDP-2009

78.3(d)(i)-b Against Nomination, in case of operational urgency subject to

reliability:

Authority Extent of power

Level-1 As per item ‘MP4(d)(i)’ of BDP-2009

78.3(d)(ii) Against Nomination for hiring of consultancy / domain expert /

professional agencies.

Authority Extent of power

EPC and Functional Director As per item ‘F-3(b)’ of BDP-2009

Level-I As per item ‘MP4(d) (ii)’ of BDP-2009

78.3(d)(iii) Against Nomination, in case of functional exigencies / special

events:

Authority Extent of power

Level-I As per item ‘MP4(d) (iii)’ of BDP-2009

78.3(d)(iv) Against Single tender on Nomination basis, for Technology

induction:

Authority Extent of power

EPC and Functional Director As per item ‘F-3(c)’ of BDP-2009

78.3(d) (v) Acceptance of Tender Committee recommendations when

majority views of Tender Committee are not acceptable or when the
recommendations are equally divided (in case of even number of members)

When majority recommendations of TC are not acceptable or when the TC

recommendations are equally divided (in case of even number of members),
procedure as per para 68.2 shall be applicable.

78.3(e) Provision deleted vide MM/56/2010 dated 11.10.2010)

78.3 (f) Acceptance of offer other than lowest technically acceptable offer
(where Tender Committee is not held)

For tenders of value of less than Rs. 5 lakhs purchase shall be finalised with
concurrence of Finance if the lowest technically acceptable offer is not
operated. (MM/8/2003 dated 02.04.03)

(MM/56/2010 dated 11.10.2010)

79 Placement of development order on a domestic bidder

Powers for approving placement of development order are as under:

Authority Extent of powers

Executive Procurement Committee Full powers

(EPC)
Functional Director Upto Rs. 1 crores in each case

(Authority: Item F6 of BDP-2009)

Provision at 79.2 and 79.3(i) deleted vide MM/56/2010 dated 11.10.2010)

80. MISCELLANEOUS POWERS OF OFFICERS OF MATERIALS

MANAGEMENT

(MM/56/2010 dated 11.10.2010)

80.1 Freight for materials carried –

(i)Ocean, River, Railway, Road and Air (where Air is cheaper or more suitable than
alternative modes)

Authotiry Extent of powers

i. Level-III (not below E-5) As per actuals

(ii) Air (including airlifting of imported material) in urgent cases

Authority Extent of powers

i. Level-I As per actuals

Note: Above powers ((i) & (ii) above) appearing under RL2 of BDP-2009 (powers for
Logistics) can be exercised by MM section also.

(Authority: Item RL2 of BDP-2009)

80.2 Wharfage & Demurrage (Supply Material transported by ship/road/rail/Air)

Authority Extent of powers

i. Level-II (not below E-6) Full powers

Level-III (not below E-5) Upto Rs. 5,000 for each case

Notes:

1. Above powers appearing under RL5 of BDP-2009 (powers for Logistics) can be
exercised by MM section also.

2. Quarterly Report of Wharfage & Demurrage cases above Rs.5000 to be

submitted to the concerned Level-1 executive.

(Authority: Item RL5 of BDP-2009)

80.3 Powers for sanctioning handling and transportation charges at Railway
Station, Stores Yards and Ware-houses

Sl. Authority Executiv Extent of Remarks

No. e Level Powers

I) Dy. Manager(MM) E-3 As per Terms i) Efforts shall be made to

of contract enter into annual rate
ii) Sr.MM Officer E-2 Contracts with suitable
agencies wherever the
handling and transportation
jobs are of recurring nature
and departmental facilities
are not adequate.

ii) Where such a contract

is not available, the
powers shall be
exercised by the
highest available officer
at the level of Sr. MM
officer and above.

iii) Financial concurrence

will be necessary.

(Authority : Item No. A.8.8 of The Delegated Powers, 1994)

80.4 Provision deleted vide MM/56/2010 dated 11.10.2010)

81. Provision deleted vide MM/56/2010 dated 11.10.2010)

82. POWERS FOR PURCHASE BY NEGOTIATIONS

In case the purchase has to be effected by negotiations before placing

order, the procedure laid down in para 77 will be followed.

(MM/56/2010 dated 11.10.2010)

83. SIGNING OF SUPPLY ORDERS / CONTRACTS.

Signing and placement of supply order for stores, spares and capital items and for
signing contracts.

Authority Extent of powers

Level-I / In-charge MM and As per item ‘MP5’ of BDP-2009
Other MM Executives.

Note:

The signing powers as above will be exercised subject to authorized signatory

satisfying himself of the following conditions:

i. Proper expenditure sanction for the procurement exists.

ii. The purchase has approval of competent purchase authority
iii. Agreement /Contract is placed on standardized/approved terms and conditions
iv. In case a tender results in multiple Orders/ Contracts, signing powers will be
decided based on the sum total of all the individual orders/ Contracts.

84. EXERCISING OF POWERS OF MATERIALS MANAGEMENT

DISCIPLINE BY OFFICERS DESIGNATED IN THE DISCIPLINE OF
MECHANICAL / ELECTRICAL / CIVIL ETC.

Officers designated in the discipline of Mechanical / Electrical / Civil etc. but

posted in Materials Management discipline may exercise powers of officers
of Materials Management discipline provided such officers are posted with
prior approval of Director(Tech).

85. OBSERVANCE OF LAID DOWN PROCEDURE

85.1 The purchase powers are exercisable only if the purchase is effected
subject to the observance of normal procedure for open / limited tenders.
No tender need be invited when purchase is made against a Rate
Contract of DGS&D.

85.2 If in any case it is considered desirable to invite tenders from a few selected
firms, the prescribed procedure will be followed.

86 RELAXATION IN CONDITIONS OF TENDERS

86.1 All contracts should normally be entered into on the standard form
prescribed for making purchases for the ONGC except where existing
clauses are to be modified or special clauses added for compliance by the
suppliers.

86.2 (Provision deleted, MM/10/2003, circular no. 26/2003 dated 06.05.03)

(MM/56/2010 dated 11.10.2010)

86.3 Relaxation in Standard terms and conditions of supply order / contacts

for purchases of Proprietary items, procurement of materials/ Hiring of
Services and award of work from OEM/OES.
In case of purchases of Proprietary items, procurement of materials/hiring of
services from OEM /OES, the Competent Purchase Authority, not below Level-I,
will be empowered to relax standard terms and conditions of supply orders /
contracts provided the OEM / OES/ manufacturer of proprietary items does not
accept such terms and conditions. It must be ensured that the items are consumed
within one year from the date of receipt.

(Authority: Note under Item MP4(c)-ii of BDP-2009)

87. POST CONTRACT ISSUES

(MM/33/2008 dated 29.04.2008)

Post contract issues (Post LOA/NOA issues, where ever unconditional

LOA/NOA is placed in line with the agreed tender / bid conditions) will require
to be deliberated by the tender committee (for cases exceeding Rs 5 lakh)
and submitted for approval of the Competent Purchase Authority.

Irrespective of the type of tender/mode of purchase or the value of individual

Purchase Order/ Contract, all the post contract issues regarding amendment
in condition(s) of contract / supply order etc will be approved by the same
authority who approved the award of contract, subject to observance of
guidelines and procedure on the subject. For cases approved by EPC,
Concerned Director, Director(Finance) and C&MD will approve post contract
issues.

88. ACCEPTANCE OF MATERIAL IN DEVIATION TO SPECIFIED

SPECIFICATIONS

Normally materials with deviation from order specifications will not be

accepted. However, in exceptional circumstances, materials under deviation
in specification may be accepted on the recommendations of a committee
consisting of one representative each from Materials Management, Finance
and Indentor (Chemistry in case of chemicals) at the level next below the
level who is empowered to approve the rates for sub-standard materials. The
rates for sub-standard supplies will be approved in each individual case by
the authority next higher to one in whose powers the purchase falls. In all
such cases, the quantum of price reduction will be determined after
taking into account the loss in utility as assessed by the indentor.
 PLACING / TERMINATION OF
SUPPLY ORDERS / CONTRACTS
(INCLUDING SERVICE CONTRACTS)
89. MARGINAL ADJUSTMENT IN SUPPLY ORDERS

89.1 Marginal adjustment upto 5% of the quantity indented may be made by the
Materials Management officer without reference to indentor or finance, to fit
the supply order within the pack units offered by trade provided the
increase in cost is not more than Rs. 1000/=.

89.2 Where no adjustments are to be permitted, the indentor will clearly indicate
that only indented quantity and nothing more or less is to be purchased.

90. PLACING/TERMINATION OF SUPPLY ORDERS / CONTRACTS

90.1.1 Placing of supply orders / contracts

(MM/42/2009 dated 08.07.2009)

90.1.1 After the decision has been taken to place order / contract on a particular
firm, necessary LOA/NOA will be placed on the firm immediately. In EPC
level cases, LOA/NOA is to be issued on the same day or latest by the next
day of receipt of decisions of EPC meeting.

(MM/56/2010 dated 11.10.2010)

90.1.2 For purchases upto Rs. 5.00 lakh in each case, the purchase order will be
placed on STR-40. No covering supply order need be issued for petty
purchases of consumable items upto Rs 10,000/-.

90.1.3 For purchases exceeding Rs.5.00 lakh the following information / clauses
must invariably be incorporated in the supply order:-

i) Name, address, telegraphic address of the firm.

ii) Consignee

iii) Date of Delivery

iv) Place of Delivery

v) Despatch instructions

vi) Packing

vii) Inspection to be carried by

viii) Place at which to be tendered for inspection

ix) Bill to be made in the name of

x) Cost debitable to Head

 xi) Payments through Bill in triplicate

a) By the
b) During the year.

xii) Supply Order Code (9 digit alpha numeric code).

xiii) Vendor Code (6 digit alpha numeric code).

xiv) Mode of transport.

xv) Insurance instructions (if required)

xvi) Terms and conditions of the supply order (to be enclosed separately
as annexure to the order).

xvii) The schedule of items ordered to be shown separately as annexure to

the order on the following proforma to be prepared as per
guidelines contained in para 161:-

Schedule of items ordered under supply order No........ dated........

Sl. ONGC Description of makers Unit of Ordered Ordered Value Delivery date
No Material items with full Pt. No./ measure quantity rate
Code specifications Drg. Ref. s CIF/FOB
No. FOR etc.

1. 2. 3. 4. 5. 6. 7. 8. 9.

Extra Charges ____________________________________

Total value of order

(FOB/FAS/CIF/FOR)etc.

In figures_____________________________
In words _____________________________

SIGNATURE _____________________
Name ____________________
Designation _____________________

(xviii) Distribution statement of quantities ordered consignee-wise to be shown

separately as annexure to the supply order on the following proforma:-

Distribution statement of quantities ordered consignee wise under

supply order No..................dated..............
Sl. No of Qty. For Ultimate Qty. For Ultimate Total
order Calcutta Consignee Mumbai Consignee
Port Port

1. 2. 3. 4. 5 6. 7. 8. 9. 10.

Code for CL EM
computer
purpose only

for Example 40 20 20 - 10 10 - - 50

Signature ________________
Name ________________
Designation _______________

N.B. Under Col.3,4,5,7,8 &9 Project Codes of Ultimate Consignee be indicated.

Under Col.2 and 6 code for port consignee be indicated. Distribution of
quantity be given under project consignee code.

Information for Computer purpose only

Vendor Extra Code Charges Amount Covering Code for L.C. Code for
Code No. details against indent condition 252 supply
No. each extra Nos. (251) col.77 order
charges condition
code 252 Col.
78
............. .................... .................. ................. .................
...................... .................
............. .................... .................. ................. .................
...................... .................
.. .... .... .... ....
.... ..
Expected Currency Exchange Advance Section Order
date of (254) Rate (254) (254) No. (254)
payment
(252)
(Col.49to50) (Col.51to58) (Col.59to70) (Col.71to80)

Amount Date
1. Payment ____________ ____________

2. Payment _____________ ____________

3. Payment _____________ _____________

Signature____________
Name ______________
Designation__________
90.1.4 It should be ensured that all items of supply orders bear a continuous
numerical Sl.No. and in no case alpha numeric numbers as 1(a)/(b) are
used. In case of annexures to supply orders also continuous Sl.Nos.
should be maintained and fresh Sl.Nos. for each annexure should not be
used.

90.2 Termination of contract / supply order

Competent Purchase Authority for cases upto their purchase powers and
CMD for Executive Procurement Committee cases will have full powers to
cancel the contract / supply order in the event(s) indicated in sub-paras (i) to
(iv) below. Provisions of paras 56.2 and 88 on Liquidated Damages / Failure
and Termination and acceptance of materials in deviation to specified
specifications respectively will be kept in view while exercising powers in
respect of sub-paras (i) and (ii) below:-

i. Specified delivery schedule is not adhered to

ii. Laid down specifications are not adhered to or when the performance
of the contract is un-satisfactory.

iii. Major contractual terms and conditions are violated

iv. Insolvency.

91. DISTRIBUTION OF COPIES OF SUPPLY ORDERS

91.1 The distribution of supply order copies will be made as under:-

i. Firm (two copies - one copy has to be received back duly

acknowledged by the firm). These will be sent under registered
forwarding letter.

ii. Consignee

iii. Port Consignee and Logistic Deptt. Headquarters (for imported

materials).

iv. Materials Management (Stock) of consignee alongwith approved

samples, if any.

v. Finance & Accounts Officer concerned - two copies

vi. F&AO (CP) - three copies (for imported materials).

vii. Indentor (P&E/ Tech. Deptt. concerned as well as Regional

Head when requirements are consolidated at Headquarters)
 viii. Quality Assurance Department

ix. Kardex Section

x. EDP Section

xi. Regional Materials Management (stock) of the consignee

xii. Office Copy

92. FOLLOW UP OF SUPPLY ORDERS

After the supply order is issued, the Purchase Authority concerned will follow
up the order so that supply is received in time.

(MM/56/2010 dated 11.10.2010)

93. SERVICES / WORKS CONTRACTS

Except the following type of services / works, all the services or works
contracts such as charter hiring of vessels, Helicopters, Heli Rigs, Seismic
/ Geophysical Survey, etc will be handled through Materials Management:

(i) Catering, house keeping and other general services for value upto Rs.10
Lakh in each case,
(ii) Empanelment of hotels
(iii) Empanelment of hospitals / Doctors.
(iv) Land acquisition.
(v) Empanelment of advocates.
(vi) Hiring of goods and passenger transport upto Rs.10 Lakh in each case.
(vii) Contract services including AMCs, Grass Cutting etc., upto Rs.10 Lakh in
each case.
(viii) Works as defined in works manual below Rs. 100 Lakh.
(ix) Electrical works pertaining to building construction and all civil works
irrespective of value.
(x) Repairs / AMC from OEM / OES up to Rs. 10 Lakh in each case.
(xi) Any specialized job like consultancy, appointment of auditors, certification
agencies, etc up to Rs 25 Lakh in each case.

(Authority: Note No. 17.15 under Appendix-I of BDP-2009)

EXTENSION IN DELIVERY PERIOD AND LEVY /
WAIVER OF LIQUIDATED DAMAGES
(MM/25/2006 dated 15.09.2006)

94. EXTENSION OF DELIVERY / MOBILIZATION / COMPLETION DATE

94.1 While granting extension in delivery date in terms of para 94.3, the
following points should be taken into consideration:

i. Has indentor specifically stated that no extension of time should be

allowed or that he should be consulted before such an extension is
allowed?

ii. If the contract has been entered into at higher prices because of the
assurance of earlier delivery, but the supplier has failed to deliver the
goods within the agreed schedule, in such cases the amount paid by
way of such price preference should be recovered from the supplier.

iii. Whether supply can be arranged easily at cheaper rates from an

alternative source and in this case whether the indentor can
reasonably wait to take advantage of this or of any downward trend in
prices generally.

iv. (Provision deleted and succeeding paras re-numbered.)

iv. All extensions are to be granted subject to the right of ONGC to claim a
reduction in prices on account of reduction in statutory duties/taxes etc.
which may take place during the extended period of delivery.
However, increase in prices during extended delivery period on
account of increase in statutory duties/taxes etc. admissible under
change in law clause shall be granted, only if extension is due to delay
on the part of ONGC.

v. Provision deleted.

94.2 When it is decided to extend the delivery period subject to the recovery of
liquidated damages for delay in supplies, contractor must be warned in
writing. Merely stating that extension is granted without prejudice to the rights
of purchaser under the terms and conditions of contract, is not enough.

(MM/25/2006 dated 15.09.2006)

94.3 Extension of Delivery / Mobilization / Completion date:

Following procedure shall be followed for grant of extension of Delivery / Mobilization

/ Completion date:

(i) In cases where the delivery/work is not likely to be completed within the
contracted schedule and cancellation/termination of contract is not contemplated,
the time of delivery/completion should be suitably extended as per instructions given
hereunder, before the expiry date of mobilization/delivery/completion, in order that
the contract shall continue to be in force and the contractor remains liable to
execute the contract.

(ii) Any extension due to entire delay being solely on account of contractor /
supplier will be decided by CPA, on recommendation by the indentor and MM. This
extension will be with levy of LD as per the terms of contract, provided the indentor
confirms continued existence of the requirement. No tender committee is required in
this case. No financial concurrence is required. Normally, such extension will be
communicated to the contractor in the format given at Annexure-A-1. For cases
falling under the powers of EPC such extension can be granted with the approval of
concerned Director.

(iii) Any extension, where delay either in part or full may be on account of ONGC,
will be granted by the Competent Purchase Authority, on recommendation by the
Indentor and MM, with ONGC reserving right to levy LD, provided the indentor
confirms continued existence of the requirement. No tender committee is required
for such decision. No financial concurrence is required. Normally, such extension
will be communicated to the contractor in the format given at Annexure-A-2. For
cases falling under the powers of EPC, such extension can be granted with prior
approval of concerned Director.

The amount of LD shall be withheld on the proportionate basis, by finance, from the
bills of supplier/contractor, while releasing payments.

On completion of delivery/work, a joint statement duly signed by both ONGC and

Contractor will be prepared (User at one level below CPA shall be competent to sign
such statement. However, the concerned Level-II Officer of indenting department
shall have full powers and shall be competent to sign such statement for all cases
where CPA is L1 and above), clearly indicating the extent of delay, the reasons
therefore and the party accountable for the delay. Proposal for time extensions
shall then be considered by the Competent Purchase Authority for approval on
recommendation by the Tender Committee regarding quantum of LD for the delay
attributable to the contractor. For cases falling under the powers of EPC, time
extensions can be granted with the approval of concerned Director, if (i) the LD rate
is as per provisions of Supply Order/Contract and (ii) delay attributed to the
contractor is not condoned either in part or full.

(iv) Notwithstanding anything stated in the foregoing paras, as a rule, no extension

should be given for a period of more than one year beyond the originally scheduled
date of delivery/mobilization/completion date. In case the extension of more than
one year is unavoidable, the approval of concerned Director must be obtained.

(v) Normally the cases involving extension due to delay on account of

contractor/supplier shall be considered with levy of LD at the rate as per contract
terms and without condoning any delay attributed to the contractor. However, in
compelling circumstances beyond the control of supplier/vendor or where the past
record of vendor/supplier is excellent in terms of meeting their commitments, a
holistic view may be taken for considering waiver of Liquidated Damages. Any
proposal, with full justifications, for waiver of LD rate in such cases, and/or
condonation of delays attributed to contractor shall require the approval of
Competent Purchase Authority (EPC, for EPC level cases), on the
recommendations of Tender Committee.

94.4 (Provision deleted vide MM amendment No. MM/25/2006 dated 15.09.2006)

(MM Amendment No. MM/20/2005 dated 10.05.2005)

94.4.1 In LSTK projects where delay is solely attributable to ONGC, the reasons for
delay should be jointly recorded in writing by the designated Project Coordinator
from ONGC and authorized representative of Contractor. Under such circumstances,
Competent Purchase Authority (CPA) may grant extension of completion period to
the extent of such delay is attributable to ONGC, without imposing liquidated
damages. In cases where EPC is CPA, Director concerned may approve such
proposal.

(MM/25/2006 dated 15.09.2006)

95. EXTENSION IN DELIVERY PERIOD AND LIQUIDATED DAMAGES IN

CASE OF DEVELOPMENT ORDERS

95.1 The Competent Purchase Authority will have powers to grant extension in
delivery period upto one year of the expiry of initial delivery period.

95.2 Depending upon merits of the case, any extension in delivery period beyond
one year of the expiry of initial delivery period will be granted with approval of
Competent Purchase Authority not below the concerned Director.

95.3 Instructions laid down below will be followed:

i. The Liquidated Damages clause will be incorporated in all Development

Orders.

ii. Any extension in delivery date without imposing liquidated damages,

will be granted with prior concurrence of Finance.

iii. Time lost due to delay on the part of ONGC will be taken into consideration
and stipulated delivery period extended correspondingly.

(MM/25/2006 dated 15.09.2006)

96. LEVY OF LIQUIDATED DAMAGES FOR DELAYS IN SUPPLIES

96.1 Deleted (MM/25/2006 dated 15.09.2006) and succeeding paras re-

numbered.

96.1.1 Deleted (MM/25/2006 dated 15.09.2006)

96.1.2 Deleted (MM/25/2006 dated 15.09.2006)

96.1 Quantum of liquidated damages

96.2.1 Deleted (MM/25/2006 dated 15.09.2006)

96.1.1 Spares, chemicals and hardware items

L.D. will be imposed on the total value of the order unless 75% of the
value ordered is supplied within the stipulated delivery period. Where
75% of the value ordered has been supplied within stipulated delivery
period, LD will be imposed on the cost of contract price of delayed supplies.
However, where, in the judgement of ONGC, the supply of partial quantity
does not fulfill the operating need, LD will be imposed on full value of the
supply order.

96.1.2 Construction / Turnkey Project

In case where company (ONGC) takes over certain facilities for the
envisaged objectives, which can be commissioned and can function
independently irrespective of the availability of balance work of the project,
ONGC may issue part completion certificate by taking over such facilities
without imposing LD. Where such facilities can not be commissioned and
can not function independently, LD in that event will be levied on full value
of the project.

96.3 Deleted (MM/25/2006 dated 15.09.2006)

(MM/25/2006 dated 15.09.2006)

97. Review of earlier decision

In case Competent Purchase Authority finds it necessary to revise his own

earlier decision imposing liquidated damages and to waive recovery thereof,
he should obtain the approval of the next higher authority for doing so. In
charge-MM will however be competent to revise his own earlier decision.

98. Copies of letter authorizing extension of Delivery/Mobilization/Completion date

should be endorsed to the following :

(i) Indenting Officer

(ii) Quality Assurance Department
(iii) Consignee
(iv) Finance and Accounts Officer
(v) Master file.
MUD CHEMICALS
99. PROCUREMENT OF MUD CHEMICALS
(MM/30/2007 dated 20.12.2007)

99.1 Schedule for placing indent / purchase orders for chemicals and
handling thereo.

99.1.1 User/Indentor shall forward the indent alongwith expenditure sanction and
PR for purchase of chemicals to the Materials Management Deptt. by 30th
June for the requirements of the subsequent year. Indents should be
accompanied with the Corporate specifications of chemical(s) including
packing and marking details which have been duly approved by Director(E)
and issued by Chief/Head Labs. In the case of low quantity and low value
chemicals, proprietary chemicals and new chemicals for which Corporate
specifications have not been formulated, the User/Indentor at the concerned
work centre (Asset/Basin/Plant/Institute/ Services) can formulate the
specifications including the modalities of testing and also the packing and
marking details in consultation with Regional/Plant Lab and get the same
approved by the concerned Level-I executive of the work centre
(Asset/Basin/Plant /Institute/ Services) before forwarding it to Material
Management Deptt. alongwith the indent for taking procurement action.

99.1.2 The requirement of the chemicals will be worked out by the User/Indentor at
the concerned work centre in accordance with approved plan and
procurement will be done by the concerned Materials Management Dept.

99.1.3MM Deptt. shall process the tenders expeditiously and ensure that the orders
are placed well in time to ensure timely availability of chemicals. MM Deptt.
shall also regularly follow-up with the supplier for timely supplies. However, for
delayed supplies, Liquidated Damages clause shall be enforced as per the
purchase order conditions.

99.2 Classification of chemicals

The chemicals are classified into two main following categories:-

(i) Commodity Chemicals

This group will consist of chemicals which are used in various other industries
besides oil exploration and exploitation.

(ii) Speciality Chemicals

These chemicals are mainly developed and manufactured in bulk for oil
exploration purposes and are used mainly by the oil industry.
99.3. Procurement method

99.3.1 Commodity Chemicals

The procurement of all mud chemicals will be effected only through

manufacturers / their authorised dealers by invitation of Bids from all the
Registered Manufacturers whose products have been found satisfactory by
ONGC laboratories / ONGC approved laboratories including CSIR
laboratories / Central Govt. Test Houses. Bids will be invited for supplies
in original packings of manufacturers only. Authorised dealers will be asked
to submit offer alongwith valid authorisation certificate from the
manufacturer. The list of approved indigenous manufacturers will be
updated every year after consulting the D.G.T.D. Hand Book on chemicals
and Industrial Directories. The offers must accompany following documents:-

i. Industrial license of SSI certificate indicating annual capacity for the item
quoted.

ii. Chartered Accountant's certificate giving last year's production / turn-over

for the item.

iii. A laboratory Test Report of latest production batch of the item quoted,
not older than one year from the date of tender opening, from the
laboratories as indicated in para 99.3.1

iv. Certificate from the manufacturer (even if the item is being purchased
through the authorised dealer) that the material being offered / supplied is
of the same standard and quality as the one for which the laboratory
certificate has been attached.

v. Income Tax Clearance Certificate.

vi. Sales Tax Registration Certificate.

vii. Earnest Money / Bid Bond / Bid Security as per instructions contained
in para 57.

99.3.2 Laboratories of repute in the country for testing of chemicals required by

ONGC will be inspected and those found upto the mark approved by the
authority(ies) so decided from time to time for this purpose by Director
(Drilling) in consultation with Director (Exploration) for different chemical(s) /
group(s) of chemicals. Capacity and capability of laboratories before
enlistment will invariably be verified. Test reports of the samples not found
up to the mark will be notified to the concerned manufacturer / their
authorised dealers so as to enable them to improve their products.

99.3.3 An advertisement will be released in the leading news papers every

alternate year by Materials Management, Drilling Business Group,
Headquarters, inviting prospective bidders to get the samples of their
 products tested from any laboratory as indicated in para 99.3.1 for obtaining
Laboratory Test Report for offering their products against ONGC
requirements.

99.3.4 No sample, whatsoever, will be asked alongwith the offers. Order on the
technically acceptable and commercially lowest offer will be placed.

99.3.5 Payment

100% payment will be made subject to following conditions:-

a) Prior satisfactory inspection and proof of despatch.

(MM/52/2010 dated 03.05.2010)

b) For orders (including Development Orders), security deposit /

performance bond @ 7.5% of the value of order in all cases where
ordered value exceeds Rs 1 lakhs.

c) The goods are insured by supplier for losses, damages, breakages

and shortages during transit at their cost and insurance cover in the name
of ONGC sent alongwith documents ; and

d) Negotiations of documents through State Bank of India.

99.4 Speciality chemicals

99.4.1 Speciality chemicals are further classified into two categories imported and
indigenous.

99.4.2 For these chemicals an identical approach will be made as in the case of
commodity chemicals for inviting tenders and documentation.

99.4.3 Speciality chemicals are basically sold under trade names. Therefore, for the
induction of competitors for better competition and greater flexibility a list of
suppliers whose performance has been found satisfactory during the past will
be drawn.

99.4.4 Laboratories of international repute for testing of chemicals required by

ONGC will be approved by the authority(ies) so decided from time to time
for this purpose by Director(Drilling) in consultation with Director(Exploration)
for different chemical(s) / group(s) of chemicals. Capacity and capability
of these laboratories before enlistment will invariably be verified. Test
reports of the sample not found upto the mark will be notified to the
concerned manufacturer / their authorised dealer so as to enable them to
improve their products.

99.4.5 No sample will be called alongwith offers from the Bidders whose
performance has been found satisfactory during past and from the Bidders
 whose samples have been approved by any laboratory as indicated in para
99.4.4. Offers from suppliers not falling under the above criteria will not be
considered.

99.4.6 The following information will be provided by the Bidders alongwith

their offers:

i. Laboratory Test Certificate not older than one year from the date of
tender opening from any of the specified laboratories.

ii. Full operating conditions.

iii. Product application methods.

iv. Performance of the product and what it is expected to achieve both in

the laboratory and in the field.
(MM/12/2003 dated 09.06.03)

99.5 For imports of chemicals of order value exceeding Rs.1.00 crore, inspection,
testing and bonding before dispatch will be done by a Chemist of ONGC at
supplier's end ; the chemist will be accountable for proper quality check as
well as bonding. . For despatch of material by the supplier in the presence
of team of officers deputed abroad for inspection, testing and bonding, each
case will be decided on merit after taking into consideration the position
of availability of ships etc. Suitable provisions will be made in supply order
reserving ONGC's right to ask the supplier to despatch material in the
presence of the Chemist deputed abroad for inspection, testing and bonding.
Supplies valuing upto Rs.1.00 crore will be tested and inspected on
receipt before taking the material on charge. This process will not take a period
of more than 30 days. No Chemist for sampling and bonding in these cases
will be detailed. However, the supplier will be asked to give a certificate to
the effect that the product in question has been tested by the ONGC approved
laboratory. Each packing will bear mark of the manufacturer as well as
name of the Chemical, Lot No. / Batch No., Date of manufacture and
supply order number.

99.6 Sampling, bonding and debonding of bulk materials

99.6.1 Before despatch of material, sampling / bonding of each lot of the product
including Barytes, CMC, PPD and OWC etc. will be done at firm's premises
by a Chemist; the chemist will be accountable for proper quality check as well
as bonding. The Chemist will ensure that supply of chemicals is in
manufacturer's original packing as specified in the supply order. Each bag /
drum of the product should bear mark of the manufacturer, name of the
chemical, Lot No, Batch No., date of manufacture and Supply order No.
Testing of the samples will be carried out in the ONGC laboratories / ONGC
approved laboratories as per para 99.3 / 99.4. The Barytes sampling and
bonding will be of 500 MT lot at a time.
99.6.2 Total four bulk samples will be drawn during sampling / bonding. The bulk
samples taken at supplier's premises will have the seal of both, the party and
ONGC.

(MM Amendment no. MM/22/2006 dated 28.04.2006)

99.6.3 Two samples will be sent to lab. for test, one sample will be given to supplier
and the fourth one is to be retained with Chemistry Deptt. Chemistry Deptt.
Shall forward the sample directly to the lab. and only send the intimation to
the Purchase Deptt. regarding forwarding of samples to the lab. for testing.

In all cases where sample has passed the test and there is no dispute, the
sample will be destroyed after one month from the date of receipt of
corresponding bulk consignment at the Project. In case of any dispute, these
samples shall be retained till resolution of said dispute. Destruction / non-
destruction of such samples shall not override the supplier’s obligations under
warranty / shelf life or any other supply order conditions.

99.7 Rejection of Bulk Sample

In the event of bulk sample getting rejected, the supplier will be asked to
reprocess it and offer again. However if the product fails even second time,
the supplier will have the option to get it tested on payment basis in his
presence from the same laboratory where it was tested earlier on following
conditions:-

a) ONGC will refund the testing fee if the earlier results or found faulty.

b) The supplier on his part will be debarred from participating in ONGC tenders
for a period of one year if earlier results are confirmed.

99.8. Debonding and despatch of mud chemicals

99.8.1 Barytes mines are mainly located in well defined area of Andhra Pradesh.
As a result, pulverising units of the suppliers are located in this area. To avoid
problems due to non-availability of wagons, it is desirable that a
warehousing capacity of around 10,000 tonnes is created by ONGC at a
logistically optimal point in between Kadappa / Kudur where loading
facilities are available and in due course a Railway spur is developed next
to the sheds for direct loading.

(MM)/12/2003 dated 09.06.03)

99.8.2 Debonding of materials at supplier's premises will be done by a Chemist; the

chemist will be accountable for proper debonding. Despatch of mud
chemicals to consuming points will be handled by ONGC personnel or
through some contractor and priority accorded so as ensure regular
uninterrupted supplies.
99.9 Random Sampling

99.9.1 No random sampling will be done at the destination. However in case

random sampling becomes necessary due to complaint from the user about
substandard supply then sampling will be done on the basis of specific
approval of the Project Head / Regional Director concerned. Retesting in
such cases will be got done from the same laboratory where sample of
bulk supply was tested earlier. For this, suitable provision for right of
rejection at destination and replacement of rejected materials free of cost
will be made in supply order.

99.9.2 It will be a condition of the contract that supplies not found as per
requirement at destination will be replaced free of cost by the supplier.

99.10 Purchase from manufacturers / Public Undertakings

99.10.1 As far as possible purchase of barytes etc. should be made directly from the
mine-owners / Pulverisers / Manufacturers or through their authorised
dealers only and a stipulation to this effect should be made in the NIT.

99.10.2 Barytes is now being produced by Public Undertakings. Efforts should be

made to procure such items from them as also from private enterprises of
repute as per directives issued from time to time with a view to ensure
supply of quality products if their rates are competitive.

99.11 Earnest Money / Security Deposit

Guidelines stipulated in para 57 will be followed.

99.12. Substandard products

99.12.1 Information should be exchanged with all Purchase Centres within ONGC
about the instances immediately where supplies of sub-standard product /
defective material have been noticed so that further dealings with such firms
are discontinued.

99.12.2 Dealing with such suppliers whose products have been found sub-
standard should be banned after following existing procedure for banning
business dealings with the firms.

99.12.3 The Projects should maintain sufficient stocks of mud chemicals to meet
any emergency arising out of supply of sub-standard material. Sufficient
stocks should be maintained to last till such time fresh supplies are
received which should be specified by User Deptt.
99.13 Third party inspection for accepting bulk supplies of mud chemicals
from abroad.

In case of bulk supplies of mud chemicals from abroad, if situation so

warrants, third party inspection may be resorted to with the approval of
Director concerned and accordingly suitable provisions for third party
inspection will be made in supply orders in case of bulk supplies of mud
chemicals from abroad.

99.14 Procurement of Barytes and C.M.C.

99.14.1 In respect of items like CMC and barytes where ONGC / OIL are the only
or major consumers, in order to keep up the competition and also to ensure
availability of the vital materials at the Projects, it is essential that orders
should be placed on more than one bidder. While taking a decision to
award contract, following factors should be essentially kept in view:-

i. The capacity of the bidders.

ii. Past performance of the bidders. While assessing past

performance it should be ensured that a supplier does not get
penalised because of working constraints of ONGC, particularly with
regard to the time consumed in sampling and bonding.

99.14.2 Subject to foregoing, following guidelines should be followed by the

purchasing authority with regard to distribution of quantity.

A) CMC

If there are less than three acceptable bidders, then 75% should be ordered
on lowest bidder and 25% on the second lowest provided he matches the
rates with the lowest. If there are three or more acceptable bidders then
distribution should be 60% on the 1st lowest, 20% on 2nd lowest and 20%
on the 3rd lowest provided 2nd and 3rd lowest bidders match the rates of the
lowest bidder.

B) Barytes

i) If tendered quantity is upto 15,000 MT

The order should be given to the 1st lowest bidder subject to his capacity
and suitability.

ii) For tendered quantity exceeding 15,000 MT but below 50,000 MT

The order should be given to a minimum of three bidders with the

lowest bidder getting 60% of quantity subject to his capacity limitations.
In case more than one bidder is found suitable and acceptable for
supply from one and the same grinding mill / premises then the order on
 those bidders should be added and combined quantity should be taken
into account for the 60% limit. The remaining quantity should be
distributed i.e. 20% each to the 2nd and 3rd lowest bidder subject to
their capacity.

iii) Quantity from 50,000 MT to 1,00,000 MT

The order should be given to the minimum of five bidders. The 1st
lowest bidder should get 30000 tonnes(60% of 50,000 tonnes) subject to
his capacity and suitability. For tendered quantity exceeding 50000 MT
the 1st lowest bidder should get 50% quantity subject to his capacity and
suitability. The remaining quantity should be equally divided amongst the
remaining four bidders or more if some more acceptable bids exist,
subject to their matching the price with the 1st lowest bidder and
subject to their capacity.

iv) For tendered quantity exceeding 1,00,000 MT

The order should be given for 50% quantity to the 1st lowest bidder
subject to his capacity and suitability. The remaining quantity should
be equally divided amongst the remaining six bidders, subject to their
matching the price with the 1st lowest bidder and subject to their
capacity and suitability.

v) The above limit of minimum of three or more bidders has to be taken as a

guideline rather than taking it as a hard and fast rule. Each case should
be decided on merit.
MISCELLANEOUS
100. VENDOR RATING

100.1 Once the orders are placed and executed, vender rating should be carried
out by concerned Material Management. For rating the vendors the factors like
past performance, capacity and capability should be taken into consideration.
A Format for vendor rating at STR-41 refers.

100.2 The lists of vendors so rated should be circulated to all purchase centres
within ONGC and up-to-date records maintained by all concerned.

101. SECURING ADJUSTMENT - FOLLOW UP OF CLAIMS

Purchase Section will secure adjustment in all claims preferred with Insurance
and with firms for short / damaged supply of material received against the
supply order.

102. AMOUNT OF COMPENSATION

The amount of compensation recoverable in case of default shall be

determined by the conditions of the contract governing the supply. It should
be understood that the amount must be limited to what is considered to be
reasonable by the appropriate authority in the circumstances of each
case and the maximum amount permissible under the terms of the
contract need not be claimed as a matter of course.

103. RETIREMENT OF DOCUMENTS FROM BANK

The bank documents will be retired by the Accounts Section of the Project /
Office concerned.

104. KARDEX SHOWING PROGRESS OF ACTION ON INDENTS

104.1 Kardex Sheets should be maintained in respect of each purchase case

showing day to day progress of the case i.e. dates on which:-

(a) Indents were received

(b) Bids were invited
(c) Bids received
(d) Bids were decided
(e) Acceptance of tender was issued
(f) Progress of supplies etc.

104.2 The Kardex Sheets must be kept duly filled in and up-to-date so that the
position of any case may be known at a glance.
(MM/42/2009 dated 08.07.2009)

105. PERIOD WITHIN WHICH INDENTS ARE TO BE PROCESSED

The maximum time limits for various activities under different categories of
tenders are prescribed in the schedules, as per details below:

Annexures B-I Tender processing time applicable for Open Tenders

Annexures B-II Tender processing time applicable for Limited Tenders

As far as possible, all tenders should be processed within time norms

prescribed for the respective category of tender.

In all cases valuing above Rs 5 lakhs, the concerned dealing officer will
indicate in the inner side of file cover the time norm prescribed for each
activity, the scheduled date of completion of the activity and actual date of
completion. In case of concurrent activities, the date of completion of last
activity (among the concurrent activities) should be indicated. In case of delays
in completion of any activity, the number of days of delay should be separately
indicated alongwith the reasons for delay, if any. The formats for this purpose
are appended as Annexure-C-I and C-II. All agendas submitted for approval of
EPC and proposals for approval of Directors must also contain such
information, tabulated in the prescribed format.

In high value cases and in those cases where a large number of bidders are
expected to participate, if the actual time required for any particular activity is
expected to be more than the time norms specified for the same, extra time
can be given for that activity (where it is felt necessary) with the approval of
CPA not below L-I (concerned Director in EPC level cases) specifically
indicating the reasons for the same. Further, such approval should be
obtained prior to initiating the processing of the tender. Accordingly, the
‘Format for reporting tender processing time’ should also be modified suitably.

106. COMPLAINTS / REPRESENTATIONS - CONSIDERATION OF

106.1 Anonymous representations received in respect of current cases should

be ignored. In case a proposal is under consideration of the Tender
Committee, then the proper representation received, if any, should be
commented upon by the Tender Committee.

106.2 Any complaint or representation received after finalisation of the case

should be examined carefully so that corrective action, if any, could be taken
in future.
 (MM/25/2006 dated 15.09.2006)
ANNEXURE `A-1'

(Form for extension of delivery date, required due to entire delay being solely on
account of contractor/supplier)

OIL & NATURAL GAS CORPORATION LTD.

No.____________ Date___________

Sub: Supply order/Contract No._______dated ______ for __.

Ref: Your letter No. ___________________dated __________.

Dear Sirs,

You failed to deliver the entire quantity of materials within the contract delivery period.
In your letter under reference, you have asked for extension of time for delivery. In view of
the circumstances stated in your above referred letter, the time for delivery is extended from
_________to _________. Please note that an amount equal to the liquidated damages for
delay in the supply of the materials after the expiry of the contract delivery period shall be
recovered from you as mentioned in clause ________ for the extended period,
notwithstanding the grant of this extension.

2. The above extension of delivery date shall also be subject to the following further
conditions:

a) that no increase in price on account of any statutory increase in or fresh

imposition of Customs Duty, Excise Duty, sales Tax or on account of any other
tax or duty leviable in respect of the materials specified in the said supply order
which takes place after ___________ shall be admissible on such of the said
materials as are delivered after the said date; and

b) that notwithstanding any stipulation in the contract for increase in price on any
other ground, no such increase which takes place after _________ shall be
admissible on such materials as are delivered after the said date;

c) but, nevertheless, the purchaser shall be entitled to the benefit of any decrease
in price on account of reduction in or remission of Customs Duty, Excise
Duty, Sales Tax or on account of any other tax or duty, which takes place after the
expiry of the above mentioned date namely __________.

3. You may now tender the materials for inspection in terms of this letter. Materials,
if any, already tendered by you for inspection but not inspected, will now be inspected
accordingly.

Yours sincerely,
 (MM/25/2006 dated 15.09.2006) ANNEXURE `A-2'

(Form for extension of delivery date, where delay, in part or full, is on account of
ONGC)

OIL & NATURAL GAS CORPORATION LTD.

No.____________ Date___________

Sub: Supply order/Contract No._______dated ______ for ___.

Ref: Your letter No. ___________________dated _________.

Dear Sirs,

You failed to deliver the entire quantity of materials within the contract delivery period.
In your letter under reference, you have asked for extension of time for delivery. In view of
the circumstances stated in your above referred letter, the time for delivery is extended from
_________to _________, reserving our right to levy liquidated damages from you for delay
in the supply of the materials after the expiry of the contract delivery period as mentioned
in clause ________ for the extended period, notwithstanding the grant of this extension.

2. The above extension of delivery date shall also be subject to the right of ONGC to
claim a reduction in prices on account of reduction in statutory duties / taxes etc. which
may take place during the extended period of delivery. However, increase in prices during
extended delivery period on account of increase in statutory duties/taxes etc. admissible
under Change in Law clause of this supply order/contract shall be granted, only if extension
is due to delay on the part of ONGC.

3. You may now tender the materials for inspection in terms of this letter. Materials, if
any, already tendered by you for inspection but not inspected, will now be inspected
accordingly.

Yours sincerely,
(MM/42/2009 dated 08.07.2009)
Annexure-B-I (of Chapter -1)

Tender processing time applicable for Open Tenders

Sl. Activity Time schedule in number of days

No.
EPC Cases Non EPC Cases
A Purchase Requisition to NIT publication

1 Receipt of Purchase Requisition by MM,

complete in all respects 0 0

2 Scrutiny of Purchase Requisition

5 5
3 Approval of BEC (Holding TC and approval
thereof) 8
8

4 Publication of NIT (including uploading of NIT

and tender documents on website) 7 7

(Total days for phase-A)

(20) (20)
B NIT publication to Techno-commercial bid opening(TBO)

1 Tender Sale Period

21 21
2 Receipt of queries from vendors for pre-bid
conference 7 7

3 Scrutinizing the queries and holding pre bid

conference 8 8
4 Approval of Minutes of Pre-bid conference,
issuance of minutes and amendments, if any
8 8
.

5 Submission of offers
21 21
(i.e. Opening of Techno-commercial bid)
(Total days for phase-B) (65) (65)

C Techno-commercial bid opening to placement of LOA/NOA

1 (a) Preparation of techno-commercial CS
4 4
(b) Vetting of CS 4 8 4 8
(1 & 2 to be (1 & 2 to be
2 (a) Forwarding the offers for technical 1 carried out 1 carried out
comments concurrently) concurrently)
(b) Technical Comments
7 7
3 TC for evaluation
(Holding TC and signing minutes)
8 8
Sl. Activity Time schedule in number of days
No.
EPC Cases Non EPC Cases
4 Approval of TC minutes
3 3
5 Opening of price bids
5 5
6 Preparation of CS for price bids
3 3
7 Vetting of CS for price bids
4 4
8 TC for finalization of tender
(Holding TC and signing minutes) 5 5

9 Approval for award of contract

18 3
10 Award of LOA / NOA
1 1
(Total days for phase-C)
(55) (40)
Total Tender processing time (A+B+C) 140 125
Notes:
(i) In case any activity is completed before specified time, next activity should
be commenced immediately.
(ii) Wherever pre-bid conference is not held / required, allotted time for the
activities related to pre-bid conference (i.e. B2, B3 and B4) shall be
excluded and the time for submission of offers (i.e. B5) shall be reduced to
10 days.
(iii) Only in LSTK contracts, an additional time of 30 days for “Process
Platforms” and 15 days for all other LSTK projects including “Well
Platforms” and “Pipe Lines” shall be applicable for the activities between
pre-bid conference to TBO.
(iv) If seeking clarifications becomes necessary (applicable for all types of
tenders), an additional time of 20 days shall be allocated for each round of
clarifications (to cover the time required for obtaining clarifications, scrutiny
of clarifications, holding TC and approval thereof etc.). However, the time
for scrutiny, holding TC, approval etc. should be curtailed to the barest
minimum possible.
(i)(v) Wherever approval of Director is required an additional time of 5 days
would be applicable. Wherever approval of EPC (other than for activity
indicated at C.9 above) is required, an additional time of 15 days would be
applicable.
 Annexure-B-II (of Chapter -1)

Tender processing time applicable for Limited Tenders

Sl. Activity Time schedule in number of days

No. Non EPC Cases
Above Rs 25 Rs 5 lakhs upto
EPC Cases
lakhs Rs 25 lakhs

A Purchase Requisition to Issue of tender enquiries

1 Receipt of Purchase Requisition by
0 0 0
MM, complete in all respects
2 Scrutiny of Purchase Requisition 5 5 5
3 Approval of BEC / PQC (For holding
TC and approval thereof) 8 8 5

4 Issue of tender enquiries (and

uploading on website for cases above
7 7 5
Rs. 5 lakhs)

(Total days for phase-A) (20) (20) (15)

B Issue of tender enquiries to Techno-commercial bid opening (TBO)

1 Receiving requests for tender
enquiries from vendors whose name 10 10 10
not included in original list
2 Verification of such request by indentor
and issue of tender enquiries to eligible
6 6 6
bidders (including the time required for
receiving same by the bidder)
3 Receipt of queries from vendors for
pre-bid conference 7 7 --
4 Scrutinizing the queries and holding
pre bid conference 8 8 --
5 Approval of Minutes of Pre-bid
conference, issuance of minutes 8 8 --

6 Submission of offers
(i.e. Opening of Techno-commercial
21 21 10
bid in two bid system / bid opening in
single bid system)
(Total days for phase-B) (60) (60) (26)
Sl. Activity Time schedule in number of days
No. Non EPC Cases
EPC Cases Above Rs 25 Rs 5 lakhs upto
lakhs Rs 25 lakhs
C Techno-commercial bid opening (TBO) to LOA/NOA
1 (a) Preparation of techno- 4 8 4 4 8
commercial CS 8
(1 & 2 to be (1 & 2 to be
(b) Vetting of CS. carried out (1 & 2 to be carried out
4 4 4
concurrently carried out concurrently
2 (a) Forwarding the offers for 1 ) 1 concurrentl 1 )
technical comments y)
(b) Technical Comments
7 7 7
3 TC for evaluation
8 8 8
(Holding TC and signing minutes)
4 Approval of TC minutes
3 3 2

5 Opening of price bids (in two bid

system) 5 5 --
6 Preparation of CS for price bids (in
two bid system) 3 3 --
7 Vetting of CS for price bids (in two
bid system) 4 4
8 TC for finalization of (in two bid
system) 5 5 --
(Holding TC and signing minutes)
9 Approval for award of contract.
18 3 --
10 Award of LOA / NOA
1 1 1
(Total days for phase-C) (55) (40) (19)

Total Tender processing time (A+B+C) 135 120 60

Notes:
(i) In case any activity is completed before specified time, next activity should be
commenced immediately.
(ii) Wherever pre-bid conference is not held / required, allotted time for the
activities related to pre-bid conference (i.e. B3, B4 and B5) shall be excluded
and the time for submission of offers (i.e. B6) shall be reduced to 10 days.
(iii) Only in LSTK contracts, an additional time of 30 days for “Process Platforms”
and 15 days for all other LSTK projects including “Well Platforms” and “Pipe
Lines” shall be applicable for the activities between pre-bid conference to
TBO.
(iv) If seeking clarifications becomes necessary (applicable for all types of
tenders), an additional time of 20 days shall be allocated for each round of
clarifications (to cover the time required for obtaining clarifications, scrutiny of
clarifications, holding TC and approval thereof etc.). However, the time for
 scrutiny, holding TC, approval etc. should be curtailed to the barest minimum
possible.
(i)(v) Wherever approval of Director is required an additional time of 5 days would
be applicable. Wherever approval of EPC (other than for activity indicated at
C.9 above) is required, an additional time of 15 days would be applicable.
 Annexure-C-I (of Chapter -1)

Format for reporting tender processing time.

(Applicable for Open Tenders)
Sl. Activity Specified Time Norms Schedule Actual date Delay, (if
in number of days d date of of any) in
completio completion completi
(Tick the appropriate n of the of the ng any
option as applicable) activity activity activity,
(i.e, the last with
activity in reasons
case of thereof
concurrent
activities)
A Purchase Requisition to NIT publication
1 Receipt of Purchase Requisition by 0
MM, complete in all respects
2 Scrutiny of Purchase Requisition 5
3(a) Approval of BEC (Holding TC and 8
approval thereof)
(b) Additional time, if approval of Director / 05/15
EPC is required (Applicable / not
applicable)
4 Publication of NIT (including uploading of 7
NIT and tender documents on website)
Total Phase A
B NIT publication to Techno-commercial bid opening (TBO)

1 Tender Sale Period 21

2 Receipt of queries from vendors for pre- 7
bid conference (Applicable / not
applicable)
3 Scrutinizing the queries and holding pre 8
bid conference (Applicable / not
applicable)
4(a) Approval of Minutes of Pre-bid 8
conference, issuance of minutes and (Applicable / not
amendments, if any applicable)

(b) Additional time, if approval of Director / 05 / 15

EPC is required (Applicable / not
applicable)
5(a) Submission of offers 21
(i.e. Opening of Techno-commercial bid) (Where PBC is held)
10
(Where PBC is not
held)
(b) Additional time In LSTK contracts for the 30 days for “Process
activities between pre-bid to TBO P/F” /
15 days for all other
LSTK projects
(Applicable / not
applicable)
Total Phase B
Sl. Activity Specified Time Norms Schedule Actual date Delay, (if
in number of days d date of of any) in
completio completion completi
(Tick the appropriate n of the of the ng any
option as applicable) activity activity activity,
(i.e, the last with
activity in reasons
case of thereof
concurrent
activities)
C Techno-commercial Bid Opening (TBO) to placement of LOA/NOA
1 (a) Preparation of techno-commercial CS 4
8
(b) Vetting of CS. 4 (1 & 2 to be
carried out
2 (a) Forwarding the offers for technical 1 concurrently)
comments
(b) Technical Comments 7

3 TC for evaluation 8
(Holding TC and signing minutes)
4 Approval of TC minutes 3

5 Seeking clarifications, if necessary, (for 20 for each round

obtaining clarifications, scrutiny of (Applicable / not
clarifications, holding TC and approval applicable)
thereof etc.)
6 Opening of price bids 5

7 Preparation of CS for price bids 3

8 Vetting of CS for price bids 4

9 TC for finalization of tender 5

(Holding TC and signing minutes)
10(a Approval for award of contract 3
)
(b) Additional time, for Director / EPC level 05 /15
cases (Applicable / not
applicable)
11 Award of LOA / NOA 1

Total Phase C
Total Tender processing time (A+B+C)
 Annexure-C-II (of Chapter -l)

Format for reporting tender processing time.

(Applicable for Limited Tenders)
Sl. Activity Specified Time Schedule Actual date Delay, (if
Norms in number of d date of of any) in
days completio completion completi
(Tick the n of the of the ng any
appropriate option activity activity (i.e, activity,
as applicable) the last with
activity in reasons
case of thereof
concurrent
activities)
A Purchase Requisition to Issue of Tender Enquiry
1 Receipt of Purchase Requisition by MM, 0
complete in all respects
2 Scrutiny of Purchase Requisition 5
3(a) Approval of BEC/ major tender 8
conditions (Holding TC and approval (5 days for cases
thereof) less than Rs 25
lakhs)
(b) Additional time, if approval of Director / 05 / 15
EPC is required (Applicable / not
applicable)
4 Issue of tender enquiries (and uploading 7
on website for cases above Rs. 5 lakhs)
Total Phase A

B Issue of Tender Enquiry to Techno-commercial bid opening

1 Receiving requests for tender enquiries 10
from vendors whose name not included in
original list

2 Verification of such request by indentor 6

and issue of tender enquiries to eligible
bidders (including the time required for
receiving the same by the bidder)

3 Receipt of queries from vendors for pre-bid 7

conference (Applicable / not
applicable)
4 Scrutinizing the queries and holding pre 8
bid conference (Applicable / not
applicable)
5(a) Approval of Minutes of Pre-bid 8
conference, issuance of minutes and (Applicable / not
amendments, if any applicable)
(if approval of EPC is required, an
additional time of 15 days would be
applicable)

(b) Additional time, if approval of Director / 05/15

EPC is required (Applicable / not
applicable)
Sl. Activity Specified Time Schedule Actual date Delay, (if
Norms in number of d date of of any) in
days completio completion completi
(Tick the n of the of the ng any
appropriate option activity activity (i.e, activity,
as applicable) the last with
activity in reasons
case of thereof
concurrent
activities)
6(a) Submission of offers 21
(i.e. Opening of Techno-commercial bid in (Where PBC held)
two bid system / bid opening in single bid 10
system) (Where PBC is not
held)
(b) Additional time In LSTK contracts for the 30 days for
activities between pre-bid to TBO. “Process P/F” /
15 days for all other
LSTK projects
(Applicable / not
applicable)
Total Phase B
C Techno-commercial Bid Opening (TBO) to placement of LOA/NOA
1 (a) Preparation of techno-commercial CS 4
8
(b) Vetting of CS 4 (1 & 2 to be
carried out
2 (a) Forwarding the offers for technical 1 concurrently
comments )
(b) Technical Comments 7
3 TC for evaluation / finalization in single bid 8
system.
(Holding TC and signing minutes)
4 Approval of TC minutes 3
for cases above Rs
25 lakhs
2
for cases upto Rs
25 lakhs
5 Seeking clarifications, if necessary, for 20
obtaining clarifications, scrutiny of for each round
clarifications, holding TC and approval (Applicable / not
thereof etc.) applicable)
6 Opening of price bids 5
(Applicable in Two
Bid System)
7 Preparation of CS for price bids 3
(Applicable in Two
Bid System)
8 Vetting of CS for price bids 4
(Applicable in Two
Bid System)
9 TC for finalization of tender in two bid 5
system. (Applicable in Two
(Holding TC and signing minutes) Bid System)
Sl. Activity Specified Time Schedule Actual date Delay, (if
Norms in number of d date of of any) in
days completio completion completi
(Tick the n of the of the ng any
appropriate option activity activity (i.e, activity,
as applicable) the last with
activity in reasons
case of thereof
concurrent
activities)
10(a) Approval for award of contract. 3
(Applicable in Two
Bid System)
(b) Additional time, for Director / EPC level 05/15
cases (Applicable / not
applicable)
11 Award of LOA / NOA 1
Total Phase C
Total Tender processing time (A+B+C)
(MM/66/2012 dated 03.05.2012)
Annexure-D of Chapter-I of MM Manual
-----------------------------------------------------------------------------------------------------------------
Appendix-……
(of bid document)
(Appendix no. to be indicated by the Work Center suitably))

PROFORMA FOR BANK GUARANTEE TO BE SUBMITTED TOWARDS

LIQUIDATED DAMAGES
(Applicable in LSTK contracts)

REF NO._________ BANK GUARANTEE NO. _____________ DATED __________

To,

Oil and Natural Gas Corporation Limited

-------------------------------
-------------------------------(indicate address of the Work centre)
Dear Sirs,

1. In consideration of Oil and Natural Gas Corporation Ltd. incorporated under

the Companies Act 1956 having its registered office at Jeevan Bharati, Tower-
II, 124 Indira Chowk, New Delhi - 110 001, India and one of its offices at
………(indicate address of the Work centre) (hereinafter referred to as
"Company" which expression shall unless repugnant to the context or meaning
thereof includes all its successors, administrators, executors and assigns),
having entered into a Contract No. ............. dated ............. (hereinafter called
"The Contract" which expression shall include all the amendments thereto)
with M/s ............... having its registered/head office at ..............(hereinafter
referred to as "The Contractor, which expression shall, unless repugnant to
the context or meaning thereof include all its successors, administrators,
executors and assigns) and Company having agreed that the Contractor shall
furnish to Company a bank guarantee for Indian Rupees/US$ ...........( in
figures) (Indian Rupees/US Dollars ..........) (in words) to cover the amount of
Liquidated Damages as per clause ………. and ……… of the Contract.
(suitable clause nos. to be indicated by the work center)

2. We.................. (name of the Bank) registered under the laws of ...............

(name of the country) having head/registered office at ........... (hereinafter
referred to as "The Bank" which expression shall, unless repugnant to the
context or meaning thereof include all its successors, administrators,
executors and permitted assigns) do hereby guarantee and undertake to pay
immediately on first demand in writing and any/all money(ies) to the extent of
Indian Rs./US$ ............. (in figures) (Indian Rupees/US Dollars ..........) (in
words) without any demur, reservation, contest or protest and/or without any
reference to the Contractor. Any such demand made by Company on the Bank
by serving a written notice shall be conclusive and binding, without any proof,
 on the bank as regards the amount due and payable, notwithstanding any
dispute(s) pending before any Court, Tribunal, Arbitrator or any other authority
and/or any other matter or things whatsoever, as liability under these presents
being absolute and unequivocal. We agree that the guarantee herein con-
tained shall be irrevocable. This guarantee shall not be determined,
discharged or affected by the liquidation, winding up, dissolution or insolvency
of the Contractor and shall remain valid, binding and operative against the
Bank.

3. The Bank also agree that Company at its option shall be entitled to enforce
this Guarantee against the Bank as a principal debtor, in the first instance,
without proceeding against the Contractor and notwithstanding any security or
other guarantee that Company may have in relation to the Contractor's
liabilities.

4. The Bank further agree that Company shall have the fullest liberty without our
consent and without affecting in any manner our obligations hereunder to vary
any of the terms and conditions of the said Contract or to extend time of
performance by the said Contractor(s) from time to time or to postpone for any
time or from time to time exercise of any of the powers vested in Company
against the said Contractor(s) and to forebear or enforce any of the terms and
conditions relating to the said agreement and we shall not be relieved from our
liability by reason of any such variation, or extension being granted to the said
Contractor(s) or for any forbearance, act or omission on the part of Company
or any indulgence by Company to the said Contractor(s) or any such matter or
thing whatsoever which under the law relating to sureties would, but for this
provision, have effect of so relieving us.

5. The Bank further agree that the Guarantee herein contained shall remain in
full force during the period that is taken for the performance of the Contract
and all dues of Company under or by virtue of this Contract have been fully
paid and its claim satisfied or discharged or till Company discharges this
guarantee in writing, whichever is earlier or until the date of expiry of the claim
period specified in para 9 of this Bank Guarantee, whichever shall first occur.

6. This Guarantee shall not be discharged by any change in our constitution, in

the constitution of Company or that of the Contractor.

7. The Bank confirms that this guarantee has been issued with observance of
appropriate laws of the country of issue.

8. The Bank also agree that this guarantee shall be governed and construed in
accordance with Indian Laws and subject to the exclusive jurisdiction of Indian
Courts in Mumbai.

9. Notwithstanding anything contained herein above, our liability under this

Guarantee is limited to Indian Rs./US$..........(in figures) (Indian Rupees/US
Dollars .............) (in words) and our guarantee shall remain in force until
................. (indicate the date of expiry of bank guarantee).

Any claim under this Guarantee must be received by us before the expiry of
this Bank Guarantee. If no such claim has been received by us by the said
date, the rights of Company under this Guarantee will cease. However, if such
a claim has been received by us within the said date, all the rights of Company
under this Guarantee shall be valid and shall not cease until we have satisfied
that claim.

In witness whereon, the Bank through its authorised officer has set its hand
and stamp on this......... day of....... at.........

.........................
(SIGNATURE)

Full name, designation and official address

(in legible letters) with Bank Stamp.

Attorney as per power of Attorney No...... Date...........

WITNESS NO.1
.............................
(SIGNATURE)
Full name and official address (in legible letters)

WITNESS NO.2
..........................
(SIGNATURE)
Full name and official address (in legible letters)
INSTRUCTIONS FOR FURNISHING BANK GUARANTEE FOR LIQUIDATED
DAMAGES

1. The Bank Guarantee by Indian Bidders will be given on non-judicial stamp paper
/franking receipt as per stamp duty applicable at the place from where the NOA has
been issued. The non-judicial stamp paper /franking receipt should be either in
name of the issuing bank or the contractor.

2. Foreign parties are requested to execute bank guarantee as par law in their
country.

3. Foreign bidders will give guarantee either in the currency of the offer or US $
(US Dollar)i.e. Indian Rs/US $ have been mentioned only for illustration. Therefore,
in case where bank guarantee is being given in currency other than 'Rupees' or
U.S.$, indicate the relevant currency of the offer.

4.(a) The Bank Guarantee by Indian contractor can be given from Nationalized/
Scheduled Banks only. The Foreign contractor can give the Bank Guarantee either
from Nationalized/ Scheduled Bank situated in India or from an Indian Scheduled
Bank situated in their country.

(b) In case the Bank Guarantee is being issued by a foreign bank (the same should
be issued from any of the banks indicated at Appendix-____ of Annexure-___ of this
bid document), then such Bank Guarantee shall be accepted only with collateral
security/ guarantee/ confirmation from any Indian Scheduled Bank.
 CHAPTER - 2

RECOUPMENT OF DEMANDS
 CHAPTER - 2
107. MAINTENANCE OF KARDEX

107.1 The numerical ledger cards at present are required to be maintained by

all MM Organisations in the Projects and Regions (the Priced Stores
Ledgers are maintained by the EDP Section on the computer). These
numerical cards consist of 'Bottom Cards' and `Top Cards'. Whereas in
the Bottom Card the postings of the receipts, issues and balances etc. are
required to be recorded, in the Top Card the information as to the
outstanding dues on orders etc. has to be indicated. The bottom card is
required to indicate the minimum and maximum levels (Safety Stock,
R.O.L. & E.O.Q.) fixed for the purpose of automatic replenishment. As these
cards form the basis of recoupment, which is a salient feature for the control
of the inventory, it is necessary that for each item of `Stores & Spares'
stocked in the various stores houses both the Bottom Cards & Top Cards
are invariably maintained and all transactions and other information recorded
promptly. It is also necessary that the total consumption year-wise for each
of the past two years and month-wise for the current year should be
recorded as such, so that the past and current consumption figures are
readily available and it should not be necessary to total up each and
individual issue to know the past consumption at any time.

107.2 One copy of all receipt and issue vouchers will be forwarded to the Kardex
Section for keeping the postings up-to-date. One copy each of the supply
orders from purchase sections will also be sent to the Kardex Section.

107.3 It is necessary that review of each card is conducted at the following stages to
account for any fluctuation in consumption and to revise the limits where
necessary and thus take timely steps for either reducing the outstanding
dues or estimate any additional requirements:-

i. When the stocks and dues on order of each item reach the minimum
level. This is a must.

ii. At the time when the physical stocks reach the safety stock level

iii. Irrespective of the review at the above two stages, each card should be
reviewed annually.

iv. In addition to the above, Ledgers Posters (Stock Holders), while posting
transactions should normally take note of any abnormal issues viz.
variation of over 20% consumption over a six months period.

107.4 The dues on order against imported material should be promptly recorded by
the Project / Regional Stores in the Top Cards the allocation made for the
Project / Region against the contracts should be reflected and the cards
kept up-to-date by posting receipts and the balance due etc.
107.5 Each numerical ledger card should be embossed with rubber stamps
"Indigenous" or "Imported", as the case may be, to differentiate between
imported and indigenous items.

108. MAINTENANCE OF BUFFER STOCKS

108.1 The Purchase Department takes purchase action on receipt of indents from
the user / provisioning sections together with financial sanction. For the
purpose of maintaining buffer stocks, Regional Stores functions to meet
demands of the materials of recurring nature required by the Projects.
Assessment of buffer stocks in normal Departments is not a difficult affair but
in an organisation like the ONGC, it is rather difficult. Hence these buffer
stocks can only be maintained if the work centres plan atleast two years
ahead and advise their requirements to the Headquarters / Regional Stores.

109. FIXATION OF MAXIMUM / MINIMUM LIMITS

109.1 To keep a check on demands and to avoid unnecessary accumulation of

materials, the Maximum and Minimum limits for all the items will be fixed. A
minimum and maximum limit should be laid down in a Project, below or
above which the balance should not ordinarily be allowed to go. These
limits will be fixed by a Committee of the following officers:-

i) One Officer from the Materials Management

ii) One Officer from the Fin.& Accts. Deptt.
iii) One Officer from the concerned User Deptt.

109.2 INDIGENOUS ITEMS

109.2.1 In the case of the indigenous items the requirements are worked out by
the MM Deptt. (Stock) at the Projects / Regions either by automatic
replenishment on Min. / Max. basis or on receipt of requirements from the
indentors. The orders are placed by them to the extent of their powers
except for items where purchases have been centralised.

109.2.2 With a view to have an effective control over inventories, it is desired

that for all stock items of stores & spares held in the store houses, the Min.
and Max. limits are fixed. It is further essential that the limits are judiciously
fixed taking into account the realistic consumption and lead time etc. and
that the limits so fixed are periodically reviewed. The MM Officer should
ensure this. The safety stock limits should not be more than 3 months. In
fact this figure should vary from item to item and range from 0-3 months.
The minimum i.e. reorder level should be fixed taking into account the
safety stock required to be kept and the lead time consumption for the item.
The maximum i.e. the quantity to be recouped at a time should be limited to
6 months requirements and in special circumstances where it becomes
necessary to exceed 6 months requirements, say for item of special
manufacture or items which are recouped on annual contract basis, it must
be ensured that the receipt is properly phased and controlled so as not to
 increase the inventory. The phased delivery should be properly inserted in
a purchase order before issue. The recoupment of the indigenous items
with a recurring consumption should be normally on automatic - Min. / Max.
basis. In other words when the stocks and dues reach on minimum i.e. the
R.O.L., the quantity required to be recouped should be = Min. + Max.
(E.O.Q) – Stock – Dues on order + known pending demands, if any.

“Min.” Represents  the R.O.L. i.e. safety stock and lead time
requirement.

“Max.” (E.O.Q)  The quantity to be ordered (economic) at a time

and is to be limited to 6 months requirements
excepting in special circumstances as brought out
above.

109.3 Imported Items

109.3.1 The recoupment of imported items is initiated by the User Departments,

who generally base their requirements on the basis of the data received by
them from various lower formations and after taking into account other
factors as known to them and the likely drilling programme. The figures for
the stock in hand and dues on order are required to be furnished by the Head
of Materials Management of concerned Business Group for each item and
only after taking these into account, the net requirements are to be worked
out. This must be ensured. The actual past consumption atleast for the last
two years consumption and the reason for the excess requirements should
be indicated against each such item. The lead time for the imported items
is considerably higher and it is necessary that the demands are initiated well
in time taking into account the lead time and the requirements should not be
worked out for more than 12 months at a time. Here too steps should be
taken for proper stipulation in the purchase orders for a phased delivery.
The buffer stocks for the imported items should not exceed more than six
months requirements.

109.3.2 The formula for recoupment being:-

Net quantity = A + F - Stocks - Dues on order + Buffer stock required.

`A' represents  the interim period requirements i.e. the

requirements till the commencement of the
period.

`F' represents  the annual requirement for the period......to.....

`Stock' represents  the physical stock as available on _____ as

indicated by the Head of Materials Management
of concerned Business Group at the time of
preparation of the statement for requirements.
 ‘Dues on order'  the outstanding quantities still to be received
represents against contracts and pending indents at the time
of preparation of the statement as indicated by
the Materials Management.

110. *The senior most Materials Management Officer not below E-1(MM) will
have full powers to fix maximum-minimum limits for stock items in
consultation with the concerned indentor and with concurrence of Finance.

*(Authority: Item No. G.1.2 of The Delegated Powers,1994)

111. REVIEW OF THE MINIMUM / MAXIMUM LIMITS

The Minimum and Maximum limits will be reviewed annually or earlier, if

warranted, either on account of changes in programme of operations or
changes in the norms.

112. PREPARATION OF RECOUPMENT REQUISITION

Recoupment requisition should be made in duplicate in the form shown

below. One copy will be retained as office copy and the original forwarded
to the procurement section for immediately arranging procurement of the
required material.

OIL & NATURAL GAS CORPORATION LTD.

STOCK RECOUPMENT REQUISITION FORM

...............Project Requisition No.........Date....

Class Group......... Code No...... Description.............

Qty. in Qty. Total Qty.outsta Max. Min. Total Qty. Remarks

stock On (Col.1&2) nding (Col.4,5&6) Reqd.
order against (Col.7-3)
indent
requistion

1 2 3 4 5 6 7 8 9

Signature of I/C Kardex

 CHAPTER – 3

PROJECT STORES
 CHAPTER-3
113.1 PROJECT STORES

113.1 Regional MM Deptt. maintains buffer stocks to meet the requirement of the
Projects from time to time. Minimum / Maximum limits of the stock holdings in
Projects will also be fixed.

113.2 The procurement section will obtain report of stock holdings from various
stock holders and place timely demands on the Regional MM Deptt. to
recoup the stock.

113.3 If any materials are not available in the Regional MM (Stock) and the same
fall within the financial powers of the Project Head, procurement of such
items can be undertaken direct to meet the requirement after obtaining
necessary financial sanction. In case it does not fall within the financial
powers of the Project Head, he will be requested to arrange financial sanction
through the concerned Region.

113.4 When the purchase power does not fall within the competency of the
Project Head, indent alongwith the financial sanction will be sent to the
Regional MM Deptt. for taking procurement action.

113.5 Before procurement action is taken by the Project, a confirmation will be

obtained from the Regional MM Deptt. regarding the time by which they will
be able to meet the requirements. The quantity of materials to be procured
direct will be purchased only to meet the time-gap.

113.6 The Project Head will be the 'Direct Demanding Officer' to place indent on
Regional MM (Stock).
 CHAPTER – 4

CLEARING AND FORWARDING PROCEDURE

 CHAPTER - 4

CLEARING AND FORWARDING PROCEDURE

114. C&F SECTION RESPONSIBILITY

The Clearing and Forwarding Section will be responsible for correct

registration, linking and disposal of all transit documents, clearing / receipt /
despatch of materials by Air / Rail / Road or by post and preparing necessary
documents connected with their work.

115. TRANSIT DOCUMENTS - RECEIPT OF

115.1 Transit documents such as Railway Receipts (RR), Parcel Way Bills
(PWB), Goods Transport Receipt(GTR) and Convoy Notes in respect of
materials dispatched by the consignor will be received from the Central Diary
Section.

115.2 The RR / PWB / GTR immediately on receipt will be entered in the RR

Register which will be maintained as per form STR-14.

115.3 Railway Receipts / Parcel Way Bills (PWB) / GTRs held with the Clearing &
Forwarding Section will be regularly examined by them and necessary
hastening action taken with carriers to expedite delivery of materials which
have not been received within the normal time allowed for transit.

115.4 In all instances of non-receipt of consignment(s) within the permissible

time limit, local authorities will be contacted to initiate action to locate
the consignment(s).

115.5 If, however, the materials are not received within the reasonable period and
RRs / PWBs remain outstanding, a formal claim on the Railway / Carriers
will be lodged by the Clearing & Forwarding Section and intimated to the
Officer-in-Charge, Stores. This submission of the claim will not be delayed
beyond three months from the date of despatch of materials by the
consignor.

115.6 If the materials arrive at the Railway Station prior to receipt of RRs / PWBs,
delivery of the same should be taken against the Indemnity Bonds.
Necessary record is, however, to be maintained on RR register. RR / PWB
will be tendered to the Railway as soon as they are received from the
consignor and the Indemnity Bond cleared.

115.7 Postal Despatch Advice Notes are also to be entered in the RR register. All
instances of non-receipt of post parcels within one month from the date of
the despatch will be reported to the consignor for taking up the matter with
postal authorities. In case where the materials have been received prior to
the receipt of postal despatch advice from the consignor, proper linking will
be maintained in the register.
116. ARRIVAL OF MATERIALS.

116.1 The materials may arrive in Clearing & Forwarding Section as follows :-

i. By full wagons where Railway sidings is provided inside the stores-

yard.

ii. By full wagons or piece consignments at Railway Station where the

Railway sidings is not provided.

iii. By Road Transport.

iv. By Post.

v. By Air.

116.2 When full wagon(s) is / are received at the Railway Station or at the
Railway siding inside the Stores yard, immediate steps will be taken to
unload the wagon(s) to avoid any demurrage. If due to any unavoidable
circumstances the wagons cannot be unloaded within the period authorised
by the Railways, necessary reasons therefore will be recorded in the
Remarks column of RR Register.

116.3 Immediately on receipt of full wagon(s), these will be examined in the

presence of the Railway representative to ensure that there are no apparent
indications suggesting any loss or damage to material enroute and all
locations / seals both of consignor and Railways are intact.

116.4 Particulars in respect of wagons on receipt will be entered in daily Wagon

Register as per form STR No. 27.

116.5 In case of stores received after transhipment, the original wagon No. will be
entered in the Remark column of Daily Wagon Register (STR-27).

116.6 Wagons will be opened and unloaded in the presence of Railways

representative and checked against the Convoy Notes. In case of any
discrepancy, a certificate to the effect will be obtained from the Railway
representative for use in support of the claims. The discrepancy will also be
noted in the RR register. Immediate steps will be taken to lodge the claim
with the Railways authorities.

116.7 The Clearing and Forwarding Section's representative is to visit the Railway
Station daily and collect all the materials received at the station. He will take
with him the RR / PWB and while taking delivery of materials, will sign the
Railway Delivery Book on behalf of the Corporation. The RR / PWB in
respect of the consignments which are being taken over from the Railways
will be handed over to the Railways authorities.
116.8 The Section Incharge will ensure that all RR / PWB are properly recorded in
the RR Register and while handing over to his representative for station
duty, his signatures are obtained for record.

116.9 The Clearing and Forwarding Section is to hand over all consignments to
the concerned stock holder alongwith the original copy of Receipt Convoy
Note as per form STR No. 29 after obtaining signature from the stock holder
on his office copy.

117. DAMAGES/DISCREPANCY IN RECEIPT OF MATERIALS

117.1 Before collecting the material the representative of the Clearing and
Forwarding Section will ensure that the packages are in good condition and
show no signs of any loss or any damages to the materials enroute and the
weight of the packages / consignments agree with the weight shown on the
RR / PWB. In case of sealed packages, all the seals will be checked to
ensure that these are intact.

117.2 In case the packages / consignments are damaged or there is any

discrepancy in weight, open delivery will be demanded from the Railways and
the contents of the packages will be checked in presence of Railways
representative. Any discrepancy found will be noted in ink on the Railway
Delivery Book and the RR / PWB and relevant packing slip will be
endorsed with details of the discrepancy. If packing slip is not received
alongwith the consignments, a Receipt Convoy Note (Form STR No. 29) is
to be prepared and signatures obtained thereon from the Railways
representative.

117.3 In case the consignment is received in damaged condition, the necessary

information will be given in the Remarks column of the Convoy Note.

118. RAISING OF DISCREPANCY REPORT

118.1 Materials which are received in packed cases or otherwise, are to be

checked with the supplier's packing list. In case any discrepancy is noticed,
this is to be recorded in the Discrepancy Report (Form STR-15) and
suitable action taken. Two copies of the Discrepancy Report will be sent to
Purchase Section who, on their part, will prefer the claim with the supplier
and/or Insurance Company, whichever applicable. The Purchase Section on
their part will take immediate action so that the claims do not become
time barred. The duplicate copy of Discrepancy Report will be returned
back to the Receipt Section with the necessary indication regarding the
action taken. If the copy is not received back within the reasonable time, the
Receipt Section should pursue the case with the Purchase Section.

118.2 Discrepancy reports should be raised within 7 days of the inspection. It must
be ensured that the discrepancy reports reach the consignor within the period
of insurance so that claims do not become time barred. The inspecting
 authorities must complete the inspection expeditiously so that the claims
can be preferred on the insurance companies within the validity period.

118.3 Discrepancies of trivial value

Discrepancies should be raised carefully. Discrepancies of trivial value

costing Rs.50/- or less should not normally be raised provided the
discrepancy is not in excess of 10% of the value of consignment even if the
loss itself is of trivial value. It has to be ensured that the discrepancy is not
one of a series of discrepancies from the same source of supply or same
stock recipient. In so far as purchases are concerned, these provisions
will apply only to cases where 100% advance payment has been made.

118.4 Stock Discrepancy

(MM/56/2010 dated 11.10.2010)

The MM officer(s) not below E-1 level will have full powers to approve and
countersign a Stock Discrepancy Report and direct follow up action.
Officer(s) of E-0 level shall exercise these power upto Rs 10,000.00.
However, Where materials management officer of E.1 level is not posted,
E.0(MM) may exercise full powers.

(Authority: Item No. MM5 of BDP-2009)

118.5 Stock Verification Discrepancies

(MM/56/2010 dated 11.10.2010)

The Assistant MM Officer(s) of E-0 level will have full powers to approve
accounting of Stock Verification Discrepancies.

(Authority: Item MM6 of BDP-2009)

119. DESPATCH OF MATERIALS

119.1 When any materials are required to be despatched from the MM (Stock), the
stock holder will intimate the Clearing and Forwarding section on 'Despatch
Note' (form No. STR 28).

119.2 The Clearing and Forwarding section will take immediate steps to arrange
the despatch of the materials as required i.e. by Rail/Road/Post.

119.3 Before taking over the packages for despatch, the Clearing and Forwarding
Section will endorse a certificate on the office copy of the 'Despatch
Note' of the Stock-holding section indicating thereon the time and date
when the packages were taken over by them.
119.4 As soon as the materials are dispatched / delivered, the RR etc. is to be
immediately handed over to the concerned stock-holder for further disposal.

119.5 In case of full wagon loading, the existing regulations covering the demand of
wagons will be observed.

119.6 Wagons will be loaded to the full capacity considering the type and weight of
the items being loaded. If the materials are to be despatched needing a
number of wagons, urgently required materials are to be loaded and
dispatched first.

120. DESPATCH CONVOY NOTE / DESPATCH REGISTER

120.1 In case of full wagon loads, Despatch Convoy Note is to be prepared as per
form STR-30. Original copy of the Dispatched Convoy Note is to be retained
by the section, 2nd copy to be sent to the consignee, 3rd copy is to be
handed over to the consignor (stock holding section) and 4th & 5th copy will
be placed in the wagon.

120.2 Each copy of the Despatch Convoy Note, placed in the wagon, is to be kept
inside the wagon near the door so that when the door is opened, one copy
of the Convoy Note is readily available and can be taken out at once. Care
will be taken to ensure that the Convoy Notes are well placed and are
secured from slipping down amongst the packages.

120.3 All records of despatches are to be maintained in the Despatch Register

(Form No. STR 18).

120.4 When any parcels is despatched by the Post, necessary records will also
be maintained in the Despatch Register and postal receipt handed over
to the Stock-holder for record. Necessary receipt of such postal Receipt is
to be taken by the Clearing and Forwarding Section from the stock holder.

121. ESCORTING OF MATERIALS

121.1 When any materials are sent in open wagon, suitable escort is to be
arranged to accompany the wagons, to avoid pilferage enroute.

121.2 During the transit by Rail, delay may take place. The movement of the
wagons may, therefore, be expedited at the station where the materials are
likely to be transhipped from Broad Gauge to Meter Gauge and vice versa
or at the station where the change of Railways takes place such as from
Northern Railways to Western Railways and the like.
 CHAPTER - 5

INSPECTION AND ACCOUNTING OF MATERIAL

122. INSPECTION OF MATERIALS

(MM/56/2010 dated 11.10.2010)

122.1 All materials will be accepted after inspection, except for the petty
purchases upto Rs.10,000.00 as per para 18.1.3 and 18.1.4.

(MM/44/2009 dated 14.09.2009)

122.2 (A) The Quality Assurance Department shall be responsible for carrying out
quality control / inspection of all items / equipment against supply orders
placed by MM Deptt., except the following :-

(a) All chemicals including mud chemicals, oil well cement, paints and gases.
(b) P.O.L.
(c) Building materials including cement and timber.
(d) Seismic explosives and detonators.
(e) Cleaning agents, hand gloves, cotton waste.
(f) Printed stationery.
(g) Wooden planks and coal.

122.2 (B) The above items at Sl. No. (a) to (g) except (d), shall be inspected by
concerned Indentor. Item at Sl. No. (d) shall be inspected by an official of
Indenting department, who is authorized / licensed to handle explosives, by
visually checking the items w.r.t verification of quantity (nos.), weight, visual
defects, batch nos. etc., and also subject to obtaining an undertaking from
supplier to the effect that in case the field performance of such visually
inspected items is not satisfactory, the same shall be replaced by the
manufacturer at his cost.

(MM/56/2010 dated 11.10.2010)

122.3 Quality Assurance Department shall not be responsible for inspection against
supply orders valuing less than Rs. 10,000/- .

(MM/42/2009 dated 08.07.2009)

122.4 All steps must be taken to commence inspection within 3 days after the
receipt of the intimation from the Materials Section for items to be inspected
locally and within 7 days if the materials to be inspected are located out of
station. Reasons for delay in the inspection beyond this period should
invariably be reported to the Head of concerned Materials Management,
Head of Quality Assurance Department and Project Head. Inspection report
(or, Intimation in respect of rejection of material) should be sent to supplier by
the inspecting authority within 4 days after completion of inspection / receipt
of relevant test reports (if any), under intimation to concerned sections
(including purchaser, Indentor, consignee and payment authority).
122.5 In the case of imported stores and spares manufactured abroad by reputed
manufacturers and accompanied by the manufacturer's warranty, stores may
be accepted after random sampling / visual inspection.

122.6 In case where cost of inspection is not commensurate with the value of the
stores concerned, inspection may be carried out at destination. At the time
of placing the supply order a suitable clause should be inserted to
provide for the return of sub-standard materials at the expense of the
supplier or acceptance of on an agreed reduced cost.

122.7 It is not advisable that the inspection should be carried out by the purchase
section or the stock holder. All technical equipment and mud chemicals
requiring expert check will be put up to the representative of the Indentor/
Department of Quality Assurance, wherever necessary and possible.

122.8 All the cases / packages are to be opened in the presence of Inspecting
Officer. (SP/3/99 dated 24.05.99)

123. INSPECTION AFTER EXPIRY OF CONTRACT DELIVERY PERIOD

123.1 Normally, no materials should be inspected and accepted after the expiry of
the contract delivery period and, therefore, the Inspecting Officer should
endorse the following clause on the Inspection Note:-

 "The fact that the have been inspected after the delivery period and
accepted, will not bind the purchaser, unless at his discretion he agrees
to accept delivery thereof. The materials are being passed without prejudice
to the right of the purchaser under the terms of the contract".

123.2 In case of part delivery offered by the firms for inspection after the expiry of
the contract delivery period, the following clause should be inserted on the
Inspection Note by the Inspection authorities:-

 "The materials detailed below have been tendered by you after the expiry of
the delivery date provided in the contract and have been inspected as a
special case; this does not bind the purchaser unless, at his discretion he
agrees to accept delivery thereof; nor does it prejudice the right of the
Purchasing Officer to claim liquidated damages from you for the late
delivery or to cancel the contract on the expiry of the delivery date, under
the terms of the contract".

123.3 Third party inspection for accepting bulk supplies of mud chemicals
from abroad.

In case of bulk supplies of mud chemicals from abroad, if situation so

warrants, third party inspection may be resorted to with the approval of
Director Concerned and accordingly suitable provisions for third party
inspection will be made in supply orders in case of bulk supplies of mud
chemicals from abroad.
124. RECEIPT OF MATERIALS

124.1 Function of the Receipt, Stock and Issue Section will be to receive the
material from the Clearing & Forwarding Section, check the same with the
Convoy Note / Supply Order; stock the same and issue them, whenever
required.

124.2 As soon as the material is received from the Clearing & Forwarding Section,
the same will be linked up with the supply orders without tampering the
packing cases. The Inspecting officer appointed by the Officer-in-Charge,
Stores, will then be intimated for inspection. (SP/3/99 dated 24.05.99 )

124.3 As soon as any material is received by the Clearing & Forwarding Section,
packages in original condition are to be handed over to the Receipt Section
which will endorse a certificate, in token of having received the packages
on the Receipt convoy Note/RR Register which will be sent to them by
Clearing Section.

124.4 Copies of all supply orders placed by the Procurement Section are to be
sent to the Receipt Section. The Receipt Section will maintain record of the
supply orders item-wise.

124.5 The material is to be checked with the supply order / Convoy Note both
quantitatively and qualitatively. After the completion of inspection,
necessary Receipt Voucher will be prepared.

(MM/56/2010 dated 11.10.2010)

124.6 Materials Management Officer not below E-I level is authorised to approve
and countersign a Goods Receipt Voucher. Where Materials
Management Officer of E-I level is not posted, MM Officer of E-0 level
may exercise full powers.

(Authority: Item MM4 of BDP-2009)

124.7 In case the quality of the material received is required to be referred to

expert(s) outside the MM Organisation, the Receipt Vouchers for such
materials have to be prepared and necessary remarks inserted in the
Remarks Column of Receipt Voucher. Such material will be taken on
Ledger Charge / Stock Cards and similar remarks will be given as in Receipt
Voucher. All entries in the Stock Cards / Kardex Cards and in the Ledgers
are to be checked and initialled daily by the Officer-in-Charge of the
section concerned. These materials are, however, not to be issued till the
technical expert approves of the qualify of the material.
125. PACKING MATERIAL - ACCOUNTING OF

All packing material received alongwith the materials is also to be receipted

and entered in the stock register especially opened for packing material. Any
packing material issued for packing purposes or otherwise is also to be
properly recorded by following normal procedure of Receipt and Issue.

126. PREPARATION OF GOODS RECEIPT VOUCHER (GRV)

126.1 There shall be only one form of GRV for both Imported and Indigenous
materials.

126.2 Separate GRVs will be prepared for Stores, Spares and Capital items to
facilitate correct booking in priced stores ledgers in Accounts Section.
Separate series of GRVs will be used for each category. The GRVs will
be prepared in 7 copies on STR-1 and are to be distributed as under :-

______________________________________________________________
Sl. No. : Department (in order of flow of copies) : Colour
of copies : 1 2 3 :
for one set: :

1st SA-6.2 MM Accounts EDP Blue

(Kardex)
2nd -do- " " Bill section Pink
3rd -do- " " - Pink
4th -do- " Indentor - White
5th -do- " MM (S.H.) - Green
6th -do- " MM (Pur) - White
7th -do- " Retained in - Blue
MM Receipt Sec.

Note : Where the number of Indentor is more than one then all Indentors
will be informed of the receipt of material.

126.3 One continuous series for GRVs will be maintained by each project. Original
copy of the GRV will be sent to Stores Ledger Section / EDP and duplicate
copy sent to Accounts for payment purposes. On original copy of GRV
would be embossed "for EDP purposes" and on duplicate copy "For payment
purposes". The GRV will be sent to Accounts branch duly completed in all
respects by 11.00 AM on the following day. Third copy is meant for Internal
Audit and is to be sent to them.

126.4 As soon as the Goods Receipt Voucher is prepared, entries are to be made
in the Stock Cards / Kardex Cards and stores binned properly.

(MM/56/2010 dated 11.10.2010)

126.5 No GRV will be raised for petty purchases of consumable items upto Rs.
10,000/-.
127. BINNING OF MATERIALS

127.1 To identify the materials from the respective suppliers, before binning the
materials, one representative sample from the consignment will be attached
with the identification card, which will indicate :-

a) Receipt Voucher No. and Date

b) Nomenclature
c) Part No.
d) Location / Bin No.

127.2 The materials will then be passed for binning.

127.3 To ensure that there is no wrong binning, fresh consignment to be binned will
be compared with the consignment already lying in the Bin before binning.
If the consignment does not tally, a recheck should be undertaken and
correct Bin No. re-allocated. In case of error in inspection / acceptance,
attention of the Inspection Officer will be drawn.

127.4 As far as possible new receipts will be so arranged in the Bins that these are
last to be selected for issue so that proper turnover of the stock is
maintained.

127.5 Prior to binning action, the quantities already held in Bins will be checked and
determined whether sufficient room exists in the Bins to accommodate the
total quantities received. If there is insufficient place in the Bin to
accommodate the whole of the new receipt in the Bins, a new location,
preferably in the vicinity of old location, will be created and new location will
also be entered in the Stock Card and Receipt Voucher. Ledger Section will
also be apprised accordingly to reconcile its records.

128. STOCKING OF MATERIALS

128.1 The following guidelines will be followed:-

i. All materials will be kept in Racks / Bins.

ii. All Racks / Bins will be given location Nos. The same are to be recorded
on the Stock Cards / Kardex Cards.

iii. All materials must be properly preserved. A separate policy on

'Preservation of stores' has been issued by Director(Technical).
However, this policy will be reviewed from time to time, wherever
necessary.

iv. While stocking materials, the heavier items will be kept at lower rungs of
the racks and lighter on higher ones.
 v. Fast moving items should be stored at easily accessible place and to the
nearest point of issue.

vi. Stocking of the items should be so arranged that the principle of 'First
Come' 'First Out' (FIFO) can be easily followed.

129. SCRUTINY OF MATERIALS REQUISITION / ISSUE NOTE

129.1 Materials will be issued only on receipt of indents on proper form STR
No.4 from authorised indenting officer(s).

129.2 The Regional / Project / Business Group Head will intimate the name(s) of
officer(s) to the MM who will be authorised to indent stores. Instructions
issued by Director (Tech.) for declaring authorised indentor(s) will be
followed strictly.

129.3 The indenting officer will be informed regarding the division of Stock-Holding
sections in the Materials Management to enable them to place their
indents on the concerned section.

129.4 When the indent is received in Materials Management, the Officer-in-Charge

of Issue Section will check whether the indent is signed by the authorised
officer as per existing directives. He will then pass it on to the Stock Holding
Section for issue.

129.5 The Stock Holding Section, before issue of materials, will check the
indent with regard to the following points:-

a) Whether all the items in the indent are for one section? If some of the
items are not kept in the Stock Holding section, the Stock Holder will note
a remark against the items in the indent and draw attention of the
indentor. The indenting officer will then place the indent for those items
on concerned section.

b) Whether the nomenclature and Part No., if any, is shown correctly

according to the record on Stock Cards ?

c) Whether the quantity demanded is as per the existing scales and / or

regulations?

d) Whether the indentor has indicated exact location of the consignee and
full postal address where the materials are required to be dispatched to
the outstation(s)?

e) Whether the demand in respect of replacement issues is accompanied by

relevant supporting documents e.g. Condemnation Board's proceedings /
Beyond Local Repairs (BLR) Certificate and Loss Statement etc. to
establish the causes which necessitated replacement ? The indent for
replacement issues should be accompanied with the separate STR No.4.
 f) Whether indent for spares for machinery and automobiles is
accompanied with worn out and unserviceable parts.

g) The Officer-in-Charge of Issue Section should ensure that when the

indent is received, it contains clear description of the job for which the
stores are required. For example "jeep repairs" or "repair for office
furniture" etc. etc.

130. MATERIALS REQUISITION / ISSUE VOUCHER – PREPARATION OF

130.1 The authorised indentor shall prepare six copies in STR-4 of Materials
Requisition / Issue Voucher and hand over five copies to the Stock Holder
either directly or through his representative. The distribution of copies of
Materials Requisition / Issue Voucher shall be as under :-

______________________________________________________________
Sl. No. : Department (in order of flow of copies) : Colour
of copies : 1 2 3 :
for one set: :
--------------------------------------------------------------------------------------------- -----------
1st MM EDP - White
(Issue)

2nd " MM Deptt. - Blue

3rd " Accounts - Pink

4th " Accounts - Pink

5th " Security - Green

6th " Requisitioning

Cost centre - Yellow

130.2 Separate vouchers shall be prepared for stores, spares and Capital item
on stock. Separate series will be allotted to the vouchers.

(MM/56/2010 dated 11.10.2010)

130.3 Materials Management Officer not below E-I level is authorised to approve
and countersign an Issue Voucher. Where Materials Management Officer
of E-I level is not posted, MM Officer of E-0 level may exercise full
powers.

(Authority: Item MM4 of BDP-2009)

131. DISPOSAL OF INDENT – ISSUE – RETURN VOUCHER

131.1 The Stock Holder shall :-

i. issue the goods and post quantity issued, unit balance in the stock
card on the previous day and identification No. on all the copies of the
stores indent;

ii. take the signature of the person receiving the goods on the material
indent;

iii. initial the indent and hand over the indentor's copy to the indentor or his
representative;

iv. make the requisite entries in the Stock Card and extend a new quantity
balance;

v. three copies of all the Indent – Issue – Return voucher shall be sent to
Acctts. Section by MM Stores Department so as to reach that section by
11.00 AM on the following day; and

vi. file the Stock-Holder copy of the indent for reference.

131.2 While light goods shall be immediately issued to the person bringing the
indent, the heavy goods shall be sent to the indentor through MM Deptt.
labour and MM Deptt. truck. The Incharge of Stock Section shall co-
ordinate the requirements of MM labour and trucks for different Stock
Holders. When the material is to be delivered by the MM truck(s), the
Driver shall take indentor's and Accounts copy of the Materials Indent with
him and bring back the Accounts copy to the Stock Holder with signature of
the indentor in token of receipt of materials.

131.3 For security purposes, the indentor's copy with details of issue shall be
shown to the Watchman at the gate, who shall sign or stamp it in token
of having checked the goods.

131.4 The Internal Audit Section will use Accounts Section copy for audit
purposes.

131.5 The recoupment of Stores and Spares will be done as per existing
instructions.

132. ISSUE OF MATERIALS – TIMINGS OF

As far as possible, the Stock Holder shall effect issues and record entries
on stock cards simultaneously. However, with a view of allowing him a little
margin to complete the left over jobs, the goods shall be issued from 8.00
AM to 12.00 noon and from 1.00 PM to 4.00 PM and one hour being allowed
for lunch break and one hour between 4 p.m. to 5 p.m. being allowed for left
 jobs. The timings may be specified as per working hours of the Project /
Office accordingly.

133. ISSUE OF MATERIALS TO OUT STATION

133.1 When the materials are required to be dispatched to out station, these are to
be properly checked and packed in the presence of two responsible
officials, one from Stock Holding Section and the other from Clearing &
Forwarding Section.

133.2 For each packing case, independent packing list is to be prepared in triplicate
on form STR-17. One copy will be kept in the case; second will be sent to the
consignee alongwith the Issue Voucher and Railway receipt and the 3rd
copy to be retained by the Stock Holder.

134. ITEMS RECEIVED AGAINST ADHOC DEMAND(S)

Items of stores and spares which have been purchased on the basis of
adhoc demand(s) from the indentor(s) should not continue to lie in the
stores house(s) for indefinite period. It is necessary that such items
immediately on receipt should be taken over by the indentor(s).The
advice about their receipt(s) in the stores house(s) should be promptly
furnished to the indentor(s). A monthly statement of such items received
and not collected by the indentor(s) should be prepared by the MM Officer
and submitted to the Project / Regional Head for co-ordinating further action.

135. RECORDING OF CAPITAL / STORES AND SPARES ITEMS

135.1 STORES AND SPARES

The items of Stores and Spares, when issued to the users by the MM Deptt.,
will be finally charged off from the Stores and Accounts Book. The User
Department will, however, maintain in STRs the inventories of such stores &
spares items in their possession which may be fit for repeated use over a
long period of time and will be responsible for their safe custody and
accounting until they are written off due to normal wear & tear or any
circumstances like loan to other departments or projects, loss etc. These
records will be subjected to check by Stock Verification Teams to ensure that
these are always complete and up-to-date.

135.2 CAPITAL ITEMS

135.2.1 All Capital items on receipt will be posted by the MM Deptt., in the numerical
Kardex Cards which are maintained by them category-wise separately for
serviceable items, repairable items and unserviceable items.

135.2.2 Capital items, as soon as received, will be issued to concerned Indentor. In

case these are not indented within a month, the matter will be brought to
 the notice of concerned Regional / Project Head for suitable directives to
concerned Indenting Department.

134.2.3 The Capital items once issued against demand(s) of authorised indentor(s)
will be finally struck off from the numerical Kardex Card(s) and further
responsibility for their accounting / distribution / safe custody etc. will lie with
Accounts Deptt. and Indentor / User Deptt., as the case may be, until the item
is returned to MM Deptt. Details of capital items with indentors will be
maintained in STR - 5.

135.2.4 The Deptt. / Office of users will obtain half yearly confirmation from the
actual users regarding physical existence of the item(s).

135.2.5 The Stock Verification Team will verify the stock of capital items held by
MM Deptt.on the basis of Kardex Cards maintained by them and items held
by user agencies will be verified against the record maintained by them and
the total items from Block Registers maintained by the Accounts
Department perpetually.

135.2.6 The balance held in Kardex Card of the MM Deptt. plus balance in user's
record must invariably tally at all times with the balance in Block Register of
the Accounts Formation. The discrepancy found during Stock Verification of
the stocks of MM Deptt. and stocks with users after comparing the same
with the balance of Block Registers will be reconciled by physical checking
of the respective items of MM Deptt. as well as user's stock, wherever
discrepancy has been actually revealed.

136. RETURN OF MATERIALS

136.1 Whenever any materials are found surplus to the indentor's requirements,
these should be returned on Materials Return Note (STR 4-A) to the MM
Deptt. (Stock) from where these were originally drawn, by the Indentor. Six
copies of the Materials Return Note will be prepared for distribution as under
:-

Sl. No. Of Department (in order of flow of copies) Colour

copies for 1 2 3
one set

1st Receiving EDP -- White

M .M

2nd “ -- -- Blue
3rd “ Accounts -- Pink

“ Accounts Returning Cost Pink

Centre
4th Security -- -- Green
 5th (Cost centre)

6th Returning -- -- Yellow

(Cost centre)

Note: The above distribution e.g. receiving copy, EDP copy, Accounts
copy, Cost Centre copy and Security Gate copy will be printed in
bold letters on each in red ink.

136.2 The Stock Holder will take the material on charge on the Materials Return
Note itself. The authorised officer will assign the balance life of the returned
material. The person returning the material and the officer authorising the
return must invariably countersign.

136.3 Reference to Issue Voucher under which the material was issued shall
invariably be given on Materials Return Note.

137. REPLENISHMENT OF SPARES

All spares for machinery and automobiles etc. are to be issued against
the production of wornout and unserviceable parts. Therefore, while
requisitioning the replenishment of such spares, the used spares should
invariably be returned.
(Provisions laid down vide para 129.5(e) also refer).

138. TRANSFER OF MATERIALS – PREPARATION OF MATERIAL TRANSFER

NOTE (STR-19) (SA03) (MTN)

138.1 The Material Transfer Note (STR-19) (SA03) will be prepared for all transfer
of goods from one Project / Unit to another. Separate class-wise MTNs shall
be prepared for transfer of stores, spares and capital items in stock. The
MTN will not require raising of Goods Receipt Voucher and instead the
material received against MTN shall be taken on charge on the MTN itself.
The MTN shall be prepared in 7 copies and distributed as under :-

Sl. No. Of Department (in order of flow of copies) Colour

copies for 1 2 3 4 5
one set

1st Copy Issuing EDP - - - Blue

MM (Issue)

2nd Copy “ Accounts - - - Pink

(Issue)

3rd Copy “ “ Receivin Accounts EDP Blue

g MM Receiving Receiving

4th Copy “ “ “ “ M.M (Issue) White

 5th Copy “ “ “ “ Account Pink
Receiving
6th Copy “ “ “ Receiving “ Yellow
MM

7th Copy Receiving “ “ “ “ Pink

MM

(MM/56/2010 dated 11.10.2010)

138.2 Materials Management Officer not below E-I level is authorised to approve
and countersign s Material Transfr Note. Where Materials Management
Officer of E-I level is not posted, MM Officer of E-0 level may exercise
full powers.

(Authority: Item MM4 of BDP-2009)

139. SUBMISSION OF VOUCHERS

139.1 The vouchers should be made over by the MM section to the Stores
Accounts (PSL) office daily. The vouchers of a date say 1st of month
should be completely delivered to the Stores Accounts office without fail,
wherever no holiday intervenes, on the morning of 3rd within 2 hrs of the
opening of the office. The vouchers would be accompanied by a
Forwarding Memo on the following form :-

Forwarding Memo of Receipt / Issue Vouchers

For Date _______________ Ward Index Letter ______________________

Class _________________________________________________________

______________________________________________________________
R.O. VOUCHER NO. DATE R.O. VOUCHER NO. DATE
NO. NO.
______________________________________________________________

139.2 Where the MM (Stock) section and the Stores Accounts (PSL) office are not
in the same station, the time allotted may be modified to suit the local
condition taking care to see that there is no avoidable delay in the regular
submission of the vouchers to the Accounts office.

140. CANCELLED OR MISSING VOUCHERS

If any voucher is missing, a search should be made for the same and if it
cannot be obtained at once a note should be kept in a register and the
 matter pursued until settled satisfactorily. In case of cancelled vouchers, it
should not be destroyed but after necessary endorsement with the remark
"Cancelled" on the foils and against entry of the forwarding memo, Vouchers
should be sent to the Priced Stores Ledger Section where these should be
separated from the rest and filed separately class by class. In checking the
vouchers with forwarding memo, the arrangements of vouchers from the
MM section should not be disturbed even if this involves inconvenience.

141. CENTRAL REGISTER OF LEDGERS / STOCK CARDS AND AUDITABLE

DOCUMENTS

Officer-Incharge, MM (Stock) will maintain this register. This register will

show all the Stock Ledger, Kardex Cards, Index Nos. and auditable
documents. At the time of authorising opening of a new ledger / Stock
Card etc. a certificate of the Ledger Section / Stock Holder should be
taken as follows on the register:-

"CERTIFIED THAT ALL MATERIALS BORNE ON THE STOCK CARDS

ARE IN MY PHYSICAL CUSTODY"

Signature of the Stock Holder

"THIS LEDGER IS IN MY PHYSICAL CUSTODY AND

CONTAINS...........PAGES. ALL PAGES ARE SERIALLY NUMBERED.

Signature of the ledger holder

142. KARDEX CARDS – INDEX REGISTER

The computerised Inventory Control and Stores Accounting system

provides for the printing of index registers in respect of the Kardex
maintained for the group / class of materials held by various Stock Holders
on the following proforma :-

-------------------------------------------------------------------------------------------------------
Material Makers Brief Unit of
Code Part No. Description measure
-------------------------------------------------------------------------------------------------------

143. KARDEX CARDS - MAINTENANCE OF

143.1 Kardex Cards will be maintained by MM Deptt. For each item two cards
are provided, one at the top and the other at the bottom. The top card gives
information regarding equipment, supply position against purchase order and
monthly consumption of an item while in the bottom card receipt and issue
vouchers are to be posted.
143.2 Separate sets of cards should be maintained under each class of material.

144. KARDEX CARDS - NUMBERING OF

144.1 The EDP section will ensure that an Index Register is provided to all the
Stock Holding units in the Corporation with the computer. The Stock Holders
will ensure that all additions in the Stock Cards are entered in the computer
printed index register. On 1st April of every year, new Index Register will
be prepared with the help of the computer. A record of Kardex Cards added
and removed will also be maintained alongwith the Index Register in the
following form :-

-------------------------------------------------------------------------------------------------------
Page : Material : Added : Removed :
: Code : : :
-------------------------------------------------------------------------------------------------------

144.2 All the cards should have stamp of the project concerned and signed by
MM Officer / Asstt. MM Officer.

145. KARDEX CARDS - OPENING OF

145.1 No cards will be opened for the first time for an item without the Stores
Accounts and the EDP cells being advised to enable them to open a
corresponding priced card in the PSL being maintained on the computer. Not
more than one card may be maintained for one item at a time unless there
is a difference in quality such as new, second hand etc. or it is found
necessary by raising of different rates of credit to maintain separate records
of stock.

145.2 Manuscript opening advice of new Stock Card should be prepared in

duplicate indicating the material code, material description, maker's part
number and Accounting Unit in STR-36. The MM officer should ensure
that all Cards kept in the stores kardex are initialled by the supervisor and
are kept up-dated. Blank cards are to be kept in proper custody.

146. CLOSING OF KARDEX CARDS

146.1 All Kardex Cards with 'nil' balance i.e. on which no transactions have taken
place during the past three years and if the same have been added and
Stock Verification carried out resulting in 'nil' balance during the last 3
years, will be removed from the cabinets and placed in a separate pad
kept according to the different groups / classification of stores.

146.2 In case the material is again received against the same code for which the
Kardex Card was removed on the above basis, a fresh card is required to
be opened and intimation sent to the Accounts Ledger section and EDP.
 When the Numerical Ledger Section of the MM Deptt. proposes to close a
card manuscript closing advice be prepared on STR-37.

147. KARDEX CARDS - RECONCILIATION OF

147.1 Particular care should be taken to see that all completed cards are carefully
stored chronologically in the order of Class and Code Nos. and are easily
available for immediate reference, suitable Binders or Cabinet being used
for this purpose. If office of the Accounts Officer is not situated in the same
station, the completed cards should be sent to that office for reconciliation
with the priced ledgers before being placed in the Binders or Cabinet for
the completed sheets cases. The Materials Management officer will be
responsible to see that proper arrangements are made for the safe despatch
of the cards. Suitable Binders or Cabinets may be kept apart for the
purpose in which the cards duly arranged by Classes and Code Nos.
should be placed alongwith a manuscript list of such cards, which should
show :-

i. Class

ii. Code No.

iii. Description of item

iv. Period of posting, commencing and closing voucher

v. No. and date.

vi. Opening Balance

vii. Closing Balance.

147.2 The Binder or Cabinet should be locked or sealed before being sent to the
Stores Accounts Officer. A spare copy of the list should be kept as office
copy and another should be sent to the Stores Account Officer which should
be returned by him duly signed in acknowledgement of the cards. When the
numerical ledger cards are received back after reconciliation, these should
be checked with office copy of the list.

147.3 In order to ensure that all vouchers of a particular month are completely
received by the Accounts and EDP sections to enable processing of the
transactions being done there, it is necessary to have a watch on the flow of
vouchers through a system of completion certificate. The fortnightly
completion certificates should be prepared in 4 copies on STR-38 and
distributed as under :-

a) First copy - office copy;

 b) Second and third copy to be sent to the Priced Ledger Section (PSL)
who will arrange to return back one copy duly verified failing which it will
be presumed that all the vouchers mentioned therein have been
received by them.

c) Fourth copy to the EDP cell who will watch for the flow of vouchers from
the Accounts.

147.4 While reconciling numerical ledger cards with the priced ledger and noting
the physical balance of Stock Verification it should be seen by Accounts
Section and Stock Verifier that the cards bear the initials of the
Supervisor / Incharge of the Numerical Ledger Section.

148. KARDEX CARD – POSTING OF / PREPARATION OF ADJUSTMENT

VOUCHERS :

There should be no entry in the card ordinarily without a voucher for the
transaction. The cards should be posted with great care, neatness being a
very great factor, no overwriting should be allowed and in no
circumstances should any entry of transaction be scored out. If by
mischance any entry of transaction which would have been correctly made
in another card but has been written in a particular card, the error should be
corrected by back entry giving reference to the ledger card. Also an
Adjustment Voucher in form STR-21 (SA-05) be prepared. All such
corrections should be made under initial of clerk / Incharge of Numerical
Ledger Section. All Receipts, Issues and other Vouchers should be posted
chronologically according to their date and document No. Issue and
Receipt against Material Transfer Note (STR-19) (SA-03) under which
material is transferred from one project to another should be posted in
green ink so that these transactions are not included in monthly
consumption. All receipts should be posted first and then issues. The order
of posting for various Vouchers should be as under :-

Posting Order Transaction Description

1. 1. GRV
2. 2. MTN-IN
3. 3. Return Note
4. 4. Material Adjustment Voucher (CRV)
5. 5. Issue Voucher
6. 6. Material Adjustment Voucher (CIV)
7. 7. MTN for issuing materials

149 DUTIES OF NUMERICAL LEDGER POSTER

He should post receipt and issue vouchers within 24 hours of the date to
which they relate, unless any holiday happens to intervene. He should
also keep "Recoupment Cards" (top cards), of the items in his charge,
duly posted. He is responsible for timely placing of recoupment requisition in
connection with the items in his charge.
150. FILLING UP OF VARIOUS FORMATS FOR COMPUTERISED INVENTORY
CONTROL.

Instructions for filling up of various formats used in the computerised Inventory

Control and Stores Accounting System are placed as on Addendum to the
manual.

151. STOCK-STATUS REPORT

151.1 Transaction Vouchers should be processed on quarterly basis by EDP and

Stock Status Reports for all items are to be sent on quarterly basis to all
concerned including Regional MPP Cell for necessary action.

151.2 The lists of non-moving items / slow moving items should also be given to
Regions on yearly basis.

151.3 The lists of non-moving / surplus items should be scrutinised and efforts
made to utilise alternative available as far as possible.

152. SLOW / FAST MOVING ITEMS

152.1 In case of items for which Max. / Min. limits have been fixed, if Stock
Holder finds that a particular item is moving slow and its limits have been
fixed on the higher side, he will bring it to the notice of Head of the Stock
Section who, in consultation with the concerned User department, will
arrange to review the Max./ Min. limits so fixed. Similar action will be taken
for items which are moving very fast and for which limits have been fixed on
the lower side.

(MM/56/2010 dated 11.10.2010)

152.2 In-charge Warehouse, not below E-I (MM) level, will have full powers to
declare as item of Stores and Spares as ‘Slow-moving’ or ‘Non-moving’.
These powers will be exercised in consultation with the Indentor and
Finance.

(Authority: Item MM3 of BDP-2009)

 CHAPTER – 6

PACKING OF MATERIALS
153. PACKING SECTION

In Regions separate packing section is necessary as mostly all the materials

will be consigned to out stations and their packing load will be sufficiently
large. However, in the case of Project Stores, the packing section may be a
part of the Receipt, Stock and Issue sections.

154 PACKING OF MATERIALS

154.1 Before packing is commenced, it should be confirmed that quantities and

nomenclature on the Issue Voucher agree with the materials.

154.2 In packing bay sufficient stock of packing materials such as straw, wood,
cotton waste, paper, water proof paper, cartons etc. will always be
maintained.

154.3 The packer should pay particular attention while packing the items of
fragile nature. The material should be so packed that the material in the
packages, while in transit, do not move or rattle.

154.4 Suitable packing boxes, crates and cartons will be used according to the
nature and quantity of the materials to be packed.

154.5 One copy of the packing slip showing the contents of the particular box
should be put inside the box.

154.6 The box is to be sealed after packing. Name of the consignee, name of the
consignor, Station of Destination, Net weight / Gross weight and nature of
materials specially when it contains items of fragile nature, will be written on
the packages before despatch.

154.7 When packages are despatched by Rail, the same must be consigned to the
Railway Station nearest to the consignee and under no circumstances, the
postal address will be indicated on the packages.

154.8 When the packages are despatched by post, full postal address of the
consignee is to be written on the parcel.

154.9 Stock Holder will check all packages for standard of work and correct
markings.

154.10 The packages will then be handed over to the Clearing and Forwarding
Section for onward despatch.

154.11 The Clearing and Forwarding Section will also check the address and the
markings on the packages.
CHAPTER – 7

GENERAL
 CHAPTER 7
155. CONTROL OFFICE

The Officer-in-Charge, MM (Stock) will see that the rules and regulations
issued from time to time on Materials Management by the Corporation
are followed by all the Sections under him to maintain proper control.
All incoming and out-going dak should be routed through Central Diary
Section of his office.

156. DRILL SITE MATERIALS

156.1 The Drill Site materials will stock materials for day to day requirement or for
weekly needs of the project works. They are not supposed to stock materials
for a long duration except mud chemicals. They will send their indent to the
Materials Management from time to time to meet their needs. This indent is
to be signed by the officer authorised for signing the indent.

156.2 All the materials consumed at the Drill Sites will be linked up with the Daily
Log Sheets maintained for the operations.

156.3 The Drill Site materials will remain under the direct control of the Officer
Incharge of the Operations at the site and he will be responsible for proper
consumption of material issued to the Drill Site.

157. DISPOSAL OF UNSERVICEABLE MATERIALS

The materials which become unserviceable during the process of operations

have to be placed before the Survey / Condemnation Board to be formed by
the Officer Incharge, who will probe into the unserviceability of the items and
recommend disposal action. A policy on the subject has been issued
separately.

158. ISSUE HOURS OF MATERIALS

The officers responsible for the administrative control of the Materials

Management (Stock) will fix up certain hours during the working period, for
the issue of materials to enable the MM staff to make corresponding
entries in the Kardex Cards during the day and keep the records up-to-date
on day to day basis.

159. PAYMENT OF BILLS

159.1 The Corporation's standard policy for making payment for supplies is as
under:-
 FOREIGN BIDDERS

ONGC offers the following terms of payment in order of preference:-

(i) Payment to the suppliers on "Collection Basis" through State Bank of

India............................, India without opening of Letter of Credit is preferred.

(ii) Wherever a Letter of Credit is required, it would be opened through the State
Bank of India ..................., India.

(iii) Payment of F.O.B. / C&F / CIF value, as the case may be, will be made
against negotiable copy of Bill of Lading and other specified documents as
per supply order through irrevocable Letter of Credit to be opened in favour
of the supplier.

(iv) All Foreign Bank charges towards advising negotiations / cable charges and
confirmation of Letter of Credit charges will be borne by the supplier. All
Indian Bank charges will, however, be borne by the ONGC.

(v) Where the supplies are proposed to be made in stages beyond three
months, the bidders should quote staggered delivery schedule giving
item-wise details / amount. The establishment of Letter of Credit in such
cases will be restricted to the period-wise deliveries so offered quarter-wise.

INDIAN BIDDERS

100% payment subject to prior satisfactory inspection and proof of

despatch provided conditions laid down vide sub-paras (a) to (c) below are
fulfilled:-

(MM/52/2010 dated 03.05.2010)

(a) For orders (including Development orders) exceeding Rs.1.00 lakh,

security deposit / performance bond @ 7.5% of the value of order in all
cases with the exception of contracts for Turnkey constructions, Vessels,
Rigs and platforms etc for which security deposit / performance bond @
10% of the value of the order has been furnished.

(b) The goods are insured by supplier for losses, damages, breakages and
shortages during transit at their cost and insurance cover in the name of
ONGC sent alongwith documents ; and

(c) Documents are negotiated through State Bank of India.

159.2 For part supplies i.e. less than instalments stipulated in the supply order,
payment cannot be made. In other cases the payments for part supplies can
be made depending upon the merits of the case and the nature of supplies in
question provided at least 20% of the supplies have been completed.
159.3 However, the Head of Materials Management, in consultation with senior
most Finance Officer in position, may also authorise 100% advance
payment as under:-

159.3.1 Without prior satisfactory inspection subject to proof of despatch of

materials in case of purchase of auto spares from reputable Original
Manufacturers and not through their stockists provided the firm furnishes
in advance guarantee to make good the deficiencies, if any or to replace the
materials which on receipt are found to be either wrongly supplied by them
or are rejected on inspection by the consignee;

159.3.2 Through issue of A/Cs Payee Cheque / Bank Draft in favour of the
manufacturer alongwith Supply Order for the purchase of proprietary
articles like Ambassador Cars where acceptance of order / registering of
requirement is subject to 100% advance payment alongwith the order. In
such cases inspection of material will be carried out and guarantee of the
performance of equipment invariably obtained from the manufacturer
before despatch of the material by them.

159.3.3 Without prior satisfactory inspection and proof of despatch in cases of

purchase of materials like cement and steel from Govt. Agencies or Public
Sector Undertakings.

159.3.4 Through issue of A/Cs Payee Cheque / Bank Draft in favour of the
suppliers against their Sale Order and / or proforma Invoice in cases where
delivery of the stores is to be obtained on satisfactory inspection and
payment.

159.3.5 For advance payment to Public Sector Undertakings no Bank Guarantee

is essential. However, Security Deposit / Performance Bond will
invariably be obtained before making advance payment.

159.3.6 The Regional Director(s) will have full powers to decide each case on
merit for advance payments subject to the condition that any deviation from
the provision in paras 158.2.1 to 158.2.5 above shall be reported to
Director (Finance).

159.3.7 In all other cases it must be ensured that payment is made within 30
days from the date of receipt of material at destination if found in
satisfactory condition after inspection.

160. RAILWAY CREDIT NOTES

(MM/56/2010 dated 11.10.2010)

MM Officer of E-0 level, or above, will have full powers to sign Railway
Credit Notes. The executive deputed for sampling / bonding/de-bonding
chemicals are also empowered to sign Railway Credit Notes. The powers are
subject to the condition that in case of demurrage / wharfage etc. the case
shall be processed concurrently for regularisation under orders of
Competent Authority.

(Authority: Item MM7 of BDP-2009)

 CHAPTER – 8

COMPUTERISED INVENTORY CONTROL

 CHAPTER-8
COMPUTERISED INVENTORY CONTROL

161. Annexure of Order Schedule

(i) Instructions as under are necessarily to be followed while preparing

Annexure of the order schedule :-

a) Vendors code is to be mentioned in 6 Alphanumeric fields. Structure

of vendors code consists of first 2 character denoting the project code
of unit placing the supply order, the 3rd place denoting the source
of supply and the 4th, 5th, 6th being continuous serial number for each
source of supply.

List of Alpha-numeric code to be operated in 3rd place is as

indicated hereunder. In case of imports, the country of origin has been
identified with Alpha character and in case of indigenous source,
with numeric digit. No unit is authorised to either use any code which
has not been prescribed or to allot fresh code themselves. For
example, if an order is being placed on an Italian firm having
Serial No. '202' by Drilling Business Group, the vendor code will be
'DZI202'. Similarly, if a Supply Order is being placed by Technical
Business Group, on Indian party having rate contract with ONGC
with an allotted serial number of '193', the vendor code would be
TZ5193'

(b) Supply Order code is to be indicated in 9 Alfanumeric character.

The first three characters remain same what has been prescribed for
vendors code i.e. the first two fields will be the authorised Project
code and the third will be source code. 4th and 5th places are
prescribed for identifying the various Sub-Purchase Sections within an
authorised accounting unit. For example, for a Supply Order placed
on a DGS&D rate contract party by 'Geopic Division' assuming
section code 'EG' given and the control number for Supply Order
being 1234, the Supply Order code would be 'E43EG1234'. Another
example, if a Supply Order is placed by EBG Sub-Purchase Section
'A' on an Australian firm and Supply Order Control number being
5678, the Supply Order code would be EZAEA5678.

(c) The third pre-requisite is the account head to which the cost is
debitable for budget control purpose. If the Supply Order is totally
for Capital item, "Capital" is to be indicated and if it is for totally stores
and spares "Stores & Spares" would be indicated. If the order is for
capital equipment with operational spares indicated "Capital with
Spares" would be given.

(d) Details of items ordered will be indicated by operating continuous

serial number without sub-serial number (alpha or Roman). However,
 Capital item will be listed out first followed by Stores and Spares. In
case of Capital item, in column '2', asset class as per asset directory
will be mentioned and in case of Stores and Spares material code as
per material code directory. For new items not covered under the
existing directives, order can be placed only after getting the Asset
Class allotted from Corporate Central Accounts in case of capital
item and Material Code from Reference Book Cell of Technical
Business Group for Stores and Spares item. It may be noted in this
regard that no reference for allotment of Asset Class code and / or
Material Code should be referred to Corporate EDP Section.

(e) The Annexure of order schedule also indicate details of distribution of

ordered quantity to different ports and different consignees. This
form is required to be filled even if the port destination is one as well
as ultimate consignee is one. Serial number, as indicated above,
should be maintained in this form also and quantity ordered as per
column '2' of this form will be same as above. The distribution of
quantity for various ports should tally with total ordered quantity and
distribution to ultimate consignee from one port should tally with the
total quantity mentioned against one port.

(f) The prescribed procedure of indication of Vendors code, Supply

Order code and Account Head to which cost is debitable, is to be
strictly followed for all Supply Orders to be placed. All Supply
Orders invariably should have Annexure duly filled in. It will be
ensured that Supply Orders to Corporate EDP Section are not sent in
piecemeal. All Supply Orders copies meant for EDP Section will be
delivered first to Coordinator within the Business Group. Coordinator
will transmit the Supply Orders onward in one lot on fortnightly basis.

Fortnight for this purpose would be 1st to 15th and 16th to end of the
month. The Supply Order lots for a fortnight will be forwarded to EDP
Section within 5 days of end of fort-night alongwith number and ending
control number of Supply Order.

(g) All amendments issued to main supply orders will be numbered

serially separately so that a proper control and watch can be kept on
amendments. All amendments should also be sent to EDP Section
through the Coordinator of the Business Group on fortnightly basis
alongwith Supply Order lot. Full details of amendment numbers for
each Supply Order should also be mentioned in the forwarding letter.
Vendors code and original Supply Order code should be mentioned
on the Top left corner of amendment.

(h) The order rate column can be further expanded to indicate the rate
basis for contractual purposes e.g. CIF / FAS / FOB / FOR station of
despatch etc.

(i) The rate column is optional.

 (j) Delivery Date - The date of delivery should be indicated as per
contractual terms e.g., "5 months from the date of opening of
confirmed LC etc." and after this portion, the expected date of
delivery should be shown separately or otherwise the only date shown
will be taken as the completion date for all items.

(k) Various other instructions to the suppliers e.g., packing & forwarding
charges, Insurance charges or other conditions may be shown after
typing out all items on order. The total value of order may also be
exhibited, if so desired.

(ii) Besides the schedule of items ordered, the distribution statement of quantities
ordered consignee-wise should also be shown. This also forms part of the
contract to enable the supplier to despatch the materials to the different
consignees. The code for computer processing has to be shown for the
Port- consignees as well as the Ultimate consignees as per details indicated
hereunder. In case of entire order being consigned to only one consignee,
the consignee's particulars may be shown in the body of the contract order
in detail and the consignee codes may be indicated in the Annexure to supply
order.

(iii) Besides this, each order sent to EDP Cell will have following information for
EDP purpose:-

a) Vendor Code: As per the codification done by the Purchase Department.

If this is not available, it may be kept blank.

b) Schedule of extra charges: The codes for schedule of extra charges

are indicated hereunder. These should be calculated for the entire
order and be filled in appropriately. It will be seen that separate set of
codes have been given for extra charges that are payable to the suppliers
and extra charges that are not payable to the supplier but are to be
reckoned for evaluating the total cost of stores e.g. Customs Duty
and Port Charges. Care should, therefore, be taken to fill up the codes
correctly in this regard. Even if the quantum of charges are not fixed
but are to be paid on actual basis, the Purchase Officer should fill-in the
Code on estimated basis. Since this information is not based for
effecting payment, estimated charges will be adequate for the internal
purposes.

c) Covering Indent Numbers: At present indent numbers have not been

codified. As and when indent numbers are codified and indents are
received in the Purchase Department, with the codified numbers, these
may be filled in. For the time being the existing numbers may be filled
in.

d) Code for LC conditions: If payment is to be done through LC, fill up

otherwise 'O' has to be given.
e) Code for supply condition

To be filled as under:

For Ex Factory - 1
for FOR Station of despatch - 2
for FOR Receiving Station - 3
for F.A.S. - 4
for C.I.F. - 5
for C.F. - 6
for F.O.B. - 7
for any other supply - 8
condition not listed above

f) Currency

The code for currencies should be as per the instructions indicated

hereunder.

g) Rate of Exchange

The rate of exchange in case of currency other than rupee has to be

indicated here. The exchange rate is the number of Indian Rupee upto
5th decimal place for one unit of Foreign Currency in which payment is
made. For example, if one US$ = Rs.9.10, write 910000. The last 5
digits must never be left blank.

h) CONSIGNEE CODE

To be filled in only in case of entire order being allocated to one

consignee.
 ANNEXURE – A

ALPHA CODES FOR COUNTRY OF ORIGIN

i) Argentina O
ii) Australia A
iii) Austria T
iv) Belgium B
v) Canada C
vi) Dubai Z
vii) England E
viii) France F
ix) Finland L
x) Denmark M
xi) Germany G
xii) Hungry H
xiii) Hong Kong Q
xiv) Italy I
xv) Japan J
xvi) Netherland N
xvii) Poland P
xviii) Rumania R
xix) Singapore S
xx) Switzerland W
xxi) Thailand D
xxii) USA K
xxiii) USSR U
xxiv) Czechoslovakia Y
xxv) Spain V
xxvi) Other X
CODES FOR SOURCES OF SUPPLY

i) DGS&D 3
ii) ONGC Rate
Contract 5
iii) Registered
Suppliers
with ONGC 0,1 & 2 (First two fields of
vendors code being PC,
next four places will be
operated starting from
0001 to 2999 continuously)
iv) Non-Registered
suppliers 8&9 (Same as per (iii) above
code '8001' to '9999' to
be operated after PC).
 APPENDEX A – 2

LIST OF STANDARD UNITS OF MEASURES USED IN ONGC

Sl. No. Unit of Measures AN

1. Number/Pieces/Tins/Barrels/Cans NO
2. Meters MR
3. Metric Tonne MT
4. Kilo Gramme KG
5. Pairs PR
6. Litres LT
7. Set ST
8. Kit KT
9. Roll/Reel RL
10. Gramme GM
11. Milli Litre ML
12. Pounds(Weight) LB
13. Packets PK
14. Square Feet SF
15. Cubic Meter CM
16. Square Meter SM
17. Gross GR
18. Dozen DZ
19. Phail PH
20. Cubic Feet CF
21. Yards YD
22. Feet FT
23. Chain Links LK
24. Short Ton TN
 ANNEXURE – B

BUSINESS GROUP WISE CODES FOR VARIOUS PURCHASE SECTIONS OF

THE MATERIALS MANAGEMENT
___________________________________________________________________
Group Sub-Group Existing Proposed
Section Code Code
___________________________________________________________________
Exploration E-I EA EA
E-II EB EB
E-III EC EC
E-IV ED ED
Geo Science Division EE EE
(NRBC)EBG(L)-Purchase

Group EF EF

Drilling D-I DA DA
D-II DB DB
D-III DC DC
D-IV DD DD
D-V DE DE
D-VI DF -
D-VII DG -

Operation Op-I - PA
Op-II - PB
Op-III - PC

Technical Tec.I - TA
Tec.II - TB
Tec.III - TC

General Tel Bhavan GA GB

Central Stores GB GB
Import Substitution IA IA
Contract CA -

The alphabets E,D,P,T,G and I denote codes for Exploration, Drilling Operation
and Technical Business Groups and General and Import Substitution Purchase
Sections respectively. These alphabets have further been suffixed with alphabets
`A' onwards depending upon the number of existing Purchase Sections. Alphabets
further to above may be suffixed with the codes of Business Group/purchase
sections in case new Purchase Sections are opened.
 ANNEXURE – C

CODES FOR PORT CONSIGNEE

_______________________________________________________________
Sl.No. PORT CODE
_______________________________________________________________
1. Bombay( Mumbai) BM
2. Calcutta CL
3. Vizag VZ
4. Madras (Chennai) MD
5. Kandla KN
6. In case of indigenous ND
7. New Delhi ND

NB: Alpa codes are to be used only for clearing and forwarding
purposes by the Port Office.
 LIST OF PROJECT CODES

Region WORK EXPLORA DRILLING OPERATIO TECHNICA COMMON OTHER

HQRS CENTRE TION NS L SERVICES S
HORS DEHRADUN EZ DZ PZ TZ XZ -
KDMIPE - - - - - 54
IDT - - - - - D6
GEOSCIENCE - - - - - E6
(NR)

NORTHERN JUMMU - DU - - XU -
REGION JAWALAMUKHI - DU - - - -

WESTERN ANKLESHWAR EA DA
REGION
BARODA EB DB
CAMBAY EC DC
AHMEDABAD ED DD
JODHPUR EG DG
MEHSANA EE DE
CENTRAL - -
WORKSHOP
C&M DIVISION - -
HAZIRA - -
IRS - -
AHMEDABAD

DELHI DELHI - -

EASTERN SIBSAGAR ER -DR

REGION
CENTRAL - -
WORKSHOP
GEOSCIENCE - -
DIVN. JORHAT
DHANSIRI - -
VALLEY
SILCHAR ES DR

CENTRAL WEST EW -
REGION BENGALTRIPU
RA
GANDAK EN - -
CALCUTTA - - -
OFFSHORE
T&S OFFICE - - -
CALCUTTA
GEOSCIENCE - - -
CALCUTTA

SOUTHERN MADRAS - DM PM
REGION OFFSHRE
GEOSCIENCE - - -
MADRAS
CAUVERY - DV -
K.G. PROJECT EK DK PK
EY DY FY
MUMBAI BOP
PORT OFFICE - - -
MUMBAI
 ANNEXURE - D

I) CODES FOR EXTRA CHARGES PAYABLE TO THE SUPPLIERS

_______________________________________________________________
Sl.No. Description Code Unit of
measure
_______________________________________________________________

1. Sales Tax 888 888 8013 XX

2. Clearing & Forwarding 888 888 8027 XX
Charges
3. Insurance 888 888 8031 XX
4. Customs Duty 888 888 8045 XX
5. Excise Duty 888 888 8059 XX
6. Port Charges 888 888 8063 XX
7. Octroi 888 888 8077 XX
8. C.S.T. 888 888 8081 XX
9. Freight Charges 888 888 8095 XX
10. Commission 888 888 8104 XX
11. Concession 888 888 8118 XX

II. CODES FOR EXTRA CHARGES NOT PAYABLE TO THE SUPPLIERS

BUT ARE RECKONED FOR EVALUATING THE TOTAL COST OF
STORES

1. Insurance 777 777 7038 XX

2. Customs Duty 777 777 7042 XX
3. Port Charges 777 777 7060 XX
4. Octroi 777 777 7074 XX
5. Freight
6. C.S.T. 777 777

Note : 1. Other Codes can be added as per requirement.

2. Tenth digit of this Code is the check digit.

3. Unit of measure is to be put for all above special codes for

computerised information.
 ANNEXURE - E

CODES FOR FOREIGN CURRENCY

-------------------------------------------------------------------------------------------------
Sl.No. Foreign Currency Symbol
------------------------------------------------------------------------------------------------
1. Argentina Peso AP
2. Australian Dollars AD
3. Austrian Schillings AS
4. Belgium France BF
5. Canadian Dollars CD
6. Czeck Kroners CK
7. Dutch Gliders DG
8. Danish Kroners DK
9. Dubai Dollars DD
10. Deutshe Marks(W.German) DM
11. East Germany Marks EM
12. Espana Dollar VD
13. French France FF
14. Finland Markka FM
15. Hong Kong Dollars HD
16. Hungary Forint HF
17. Indian Rupees RS
18. Italian Liras IL
19. Japanese Yen JY
20. Malaysian Dollars MD
21. Norweign Kroners NK
22. Pound Sterling PS
23. Poland Zloty PZ
24. Russian Roubles RR
25. Rumanian LEU RL
26. Singapore Dollars SD
27. Swiss Francs SF
28. Swedish Kroners SK
29. Thailand Baht TB
30. U.S.Dollars UD
31. Norweian Korea NK
 CHAPTER – 9

e-PROCUREMENT
 CHAPTER – 9
e-PROCUREMENT

162 E-Procurement:

162.1 The Purchase Requisitions (Indent) for SRM (E-Procurement Module) tenders
will flow automatically from SAP-R/3 system. The process for approval of
BECs, Evaluation matrix etc. will take place as per existing process. After due
approval, all related documents will be up-loaded in the system by the dealing
officer. Thereafter the dealing officer will prepare the bid-invitation and upload
the same after affixing digital signature as per the IT Act, 2000.

162.2 The NIT in respect of all tenders of value more than Rs 5 lakhs shall be
published on the ONGC tender website (www.ongctenders.net). The tender
website shall have a link to SRM server. Prospective bidders who intend to
participate in the Open Tenders can logon to SRM server with Guest user ID
and view the documents and may request for access through the portal by
providing basic information about them. Thereafter, user ID and password will
be issued to them. The vendors will also be given necessary help for
understanding the system.

(MM/27/2007 dated 30.03.2007)

162.3 For e-procurement tenders, the tender fee shall be specified in Indian Rupees
amount as specified at para 40 of MM Manual, corresponding to the value of
the tender.

The tender fee shall be collected through online payment gateway only, in
case of e-procurement tenders. The prospective bidders can create their bid
online only after payment of tender fee. Indian Agents can not purchase
tender documents on behalf of their foreign principals, in case of e-
procurement tenders. The payment of tender fee through electronic payment
gateway can be made using Credit Cards or Bank Transfers. Foreign bidders
are also allowed to purchase tender document by making e-payment using
Credit Cards issued either in India or outside India.

Any subsequent reversal/non-realisation of e-payment would lead to rejection

of bids submitted by such bidders.

No separate proof for sale of bidding document shall be required to be

submitted along with the bid made by bidders in e-procurement tenders.

(MM/68/2012 dated 05.10.2012)

162.3.1 MSEs registered with District Industry Centers or Khadi and Village
Industries Commission or Khadi and Village Industries Board or Coir Board or
National Small Industries Corporation or Directorate of Handicrafts and
Handloom or any other body specified by Ministry of MSME who intend to
 claim exemption from payment of tender fee, must furnish the evidence that
they are registered for the items they intend to quote. Such documentary
evidence should be submitted to ONGC at least 7 days in advance of date of
closing of sale of bid documents. The Govt. Deptts. will also be exempted
from the payment of tender fee.

162.4 In the NIT published on the website, the name, designation and e-mail
address of the designated Administrator who is to be contacted by bidders, as
nominated by concerned In-Charge (MM) for the particular tender, should be
indicated.

162.5 As all tender conditions including the standard booklet conditions will be made
available on the e-procurement portal which can be accessed by the vendors,
hence it will not be necessary for the bidders to separately purchase the
standard booklets (as is the case in respect of other tenders i.e. against a fee
of US$ 10.00 from foreign bidders and Rs. 500.00 from Indian bidders).

162.6 It shall be insisted that all bidders participating in e-tenders should submit bids
only in e-form. Compliance/confirmation for pre-qualification criteria and
technical / commercial BEC should be insisted in e-form only. Only Bid Bond,
Power of attorney of signatory or any specific third party document insisted in
Originals as per tender condition alone shall be accepted in physical form. For
submitting the bids, the vendors will also require digital signature. The system
shall assist in evaluation of bids by providing price comparisons and other
relevant reports. All such reports, TC recommendations and approvals which
will be outside system, will be subsequently uploaded in the system by the
dealing officer.

162.7 After finalization of tender, the supply orders will be issued through SAP – R3
system.

162.8 The activity wise responsibilities in the e-procurement system are defined as
at Annexure-A.

162.9 Other provisions of MM Manual and Instructions issued from time to time,
shall be followed by all concerned, as in case of non e-procurement tenders.

(MM/55/2010 dated 05.07.2010)

(Provisions appearing under 162.10 (i.e. sub-paras 162.10.1 to 162.10.21 deleted)

162.11 Implementation of e-procurement

162.11.1 e-procurement would be implemented across ONGC in a phased manner

(schedule would be notified separately by ICE) for all cases of procurement
of materials, services and turnkey contract exceeding Rs.100 lakhs.
162.11. 2 However, in case it is felt by a work center not to resort to e-
procurement method of tendering for cases exceeding Rs.100 Lakhs,
approval of concerned Director would be required.

(Provision 162.11.3 deleted vide MM/55/2010 dated 05.07.2010)

(MM/55/2010 dated 05.07.2010)

162.11.4 All cases for procurement of materials / services on single tender

nomination, OEM / OES and PAC basis shall be exempted from e-
procurement.

162.12 Bid Return Procedure:

(MM/39/2009 dated 24.06.2009)

162.12.1 The duly completed bid with no system error message can be ‘submitted’
in SRM any time before the submission deadline is reached. The bidder
shall also be permitted to make changes in his bid and re-submit the same
in SRM till the submission dead line. The final submitted version of bid only
shall be considered by ONGC.

(MM/55/2010 dated 05.07.2010)

162.13 Familiarization/training of vendors

162.13.1 With the assistance of ICE team, training for vendors shall be facilitated
to meet:

a. Online help documentation for bidder registration to SRM portal

including process of obtaining digital certification.
b. Training to all prospective bidders during pre-bid conference to
access data and also upload bid parameters and documents in C-
folders.
c. (Provision deleted vide MM/55/2010 dated 05.07.2010)

(MM/55/2010 dated 05.07.2010)

162.14 The due date and time for price bid opening should be intimated well in
advance to the bidders, through the System.
 Annexure-A

The activity wise responsibilities in the e-procurement system:

Sl Activity Manual Responsibility

No (M)
Electronic
(E)
1 Consolidation of PR in ICE E The documents as stated will be
furnished by the indenting deptt in
the ICE system and consolidation
will be done by respective MM
departments.
2 BEC Formulation M By nominated TC members.
3 BEC Approval M By CPA
4 Generation of Tender No in E Dealing Officer
ICE
5 Create Bid Invitation in SRM E Dealing Officer
6 Uploading of scanned copies E Dealing Officer
of all related
noting/documents of TC after
approval in C-folders (internal
area)
7 Uploading and preparation of E Dealing Officer
complete tender document in
C-folders (digitally signed)
8 Release of tender documents E Dealing Officer
in C folders of the system for
publishing tender in SRM
9 Publish the tender in SRM E/M NIT will be published at the site
(Digitally signed) and as per www.tenders.ongc.co.in which will
procedure at website and have a link with SRM server.
news papers Tender documents will be
published in SRM by the dealing
officer. The NIT shall also be
published in press as per existing
guidelines
10 E mail/Fax to prospective E/M Dealing Officer
vendors
11 Access authorization to E Dealing Officer in consultation with
vendors ICE team.
12 Acceptance of tender fee via E Automatic
payment gateway
13 Granting tender fee E Dealing Officer
exemption, if any in ICE
(MM/39/2009 dated
24.06.2009)
Sl Activity Manual Responsibility
No (M)
Electronic
(E)

14 Create pre bid query Auto, upon creation of bid by

authorization for authorized E bidder.
vendors in C folders so as to
allow them to raise pre bid
queries.(“Authorized” means
those vendors who have paid
tender fee or who have been
allowed to participate in
particular tender without
tender fee.)
15 Receive pre bid queries in E Auto
SRM system
16 Loading of pre bid queries in E Indentors shall be authorized to
internal folder for indentor to view the queries by the dealing
view and comment officer
17 Pre Bid conference M As per present practice, pre-bid
conference is held in the presence
of interested vendors who have
purchased tender document. In
ONGC tenders sometimes due to
complexity of cases discussion
with vendors ensures better
understanding about the tender
conditions. Present system to
continue.
18 Upload pre bid conference E Dealing Officer
MOM in c-folders after
approval with restricted
access to authorized bidders
only.
19 Give access to authorized E Dealing Officer
vendors to view above
20 Mail sent to authorized E Dealing Officer
vendors intimating loading of
MOM
21 Issue all amendments to E Dealing Officer
tender documents, if any,
made in system after
approval
22 Mails sent to vendors E Dealing Officer
intimating loading of
amendments in C
folders/SRM
23 Vendors create bids in SRM E Vendor
Sl Activity Manual Responsibility
No (M)
Electronic
(E)
24 Vendors submit their bid E Vendor
(only those who have paid
tender fee or those who are
authorized to participate)
25 Opening of techno E Dealing Officer in presence of TC
commercial bids on specified members.
date and time in system. (C
folders of Bidders)

(MM/60/2011 dated
03.06.2011)

26 Opening of Original M Nominated Tender opening

documents permitted to be Officers.
submitted in physical form, at
1500 Hrs. on 7th calendar
day after opening of bids
submitted through the e-
bidding portal

27 Access given to concerned E Dealing Officer

Indentor & Finance for
viewing bids.
28 Uploading of bid opening E Dealing Officer
report in C folder with
restricted access to bidders
who have submitted the bids.
Bid opening report will
contain only names of the
bidders.
29 Compilation of bid evaluation M (MM/49/2009 dated 02.12.2009)
Matrix Tender Opening officers (Assisted
by respective dealing officers/
dealing assistants).
30 Uploading of Above in E Dealing Officer
internal area of C folders
(MM/39/2009 dated
24.06.2009)

31 Technical Evaluation and M/ E By Technical Evaluator

uploading of technical
comments
32 TC proceedings and approval M TC meeting will be held as per
of it procedure.
33 Asking for confirmations/ E Dealing Officer
Sl Activity Manual Responsibility
No (M)
Electronic
(E)
deficient documents, if any,
through system from any
bidder through bidders
correspondence area.
Response of bidder also
through system.
34 TC proceedings for short M/E TC meeting as per procedure.
listing of Bidders and its Dealing Officer after approval from
approval from CPA and its CPA will enter proceedings in C
entry into the system folders and mark not acceptable
bidders.
(MM/55/2010 dated
05.07.2010)

35 Notification of Price bid E Dealing officer

opening date.

(MM/55/2010 dated (MM/55/2010 dated 05.07.2010)

05.07.2010)

36 Opening of price bid of short E In SRM, the price bids are opened
listed vendors on given date as per SRM procedure by dealing
and time. officer after the pre-fixed opening
time and short listed bidders are
entitled to participate in the
automatic opening of price bid and
the prices quoted by different
bidders are read out to all.

(MM/55/2010 dated
05.07.2010)

37 Calculate Evaluated price as M Dealing officer / Finance officer

per BEC and vetting thereof.

38 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

39 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

40 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

41 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

Sl Activity Manual Responsibility
No (M)
Electronic
(E)
dated 05.07.2010 05.07.2010

42 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

43 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

44 Deleted vide MM/55/2010 E Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

45 Deleted vide MM/55/2010 Deleted vide MM/55/2010 dated

dated 05.07.2010 05.07.2010

46 TC to examine above for E/M TC

recommendation
47 In case of EPC cases, E Dealing Officer
Uploading EPC agenda after
endorsement
48 Upload scanned copies of TC E Dealing Officer
minutes, EPC decision etc
49 Acceptance of bids in System E Based on MP5 of BDP
50 Placement of LOA/contract M Existing practice of manual LOA to
continue.
51 PO/Contract in System E Dealing Officer
 CHAPTER – 10

PROCUREMENT OF PREMIUM BITS ON CONSIGNMENT

BASIS
 CHAPTER – 10

(MM/26/2007 dated 11.01.2007)

“163 Procurement of Bits on “Consignment basis”

163.1 Offers shall be invited from bit-manufacturing companies on ICB basis.

163.2 Estimated annual off-take shall need to be indicated in the NIT and tender
document so as to enable the bidders to get an idea of the volume of
expected business at the time of bidding. Estimated initial order quantity,
separately for PEL/ML areas and non-PEL/ML areas, shall also be
indicated in the tender documents.

163.3 It shall be made clear in the tender documents that there shall be no
minimum guaranteed off-take by ONGC. Payment shall be released by
ONGC only for the actual quantity consumed or retained beyond 9 months
by ONGC as per contract provisions.

163.4 Evaluation of offers will be based on the “Criteria for Ranking of Bidders”
and “Details and Documents to be submitted for evaluation of Bits”, as per
Annexures to this Chapter (i.e.‘Annexure-A-1’ and ‘Annexure-A-2’
respectively).

163.5 Two Bids System shall be followed in the Price Bid and bidder shall submit
the price list of the offered products. The price list shall cover the sizes
required by ONGC for TCR & PDC bits under their product range. Bidder
shall submit separate sealed price covers for each size of Bits, say 17 ½”,
12 ¼”, 8 ½” & 6”. For any other sizes Annexure A-1 & A-2 will be framed
by Bit Committee [as constituted by Director (T&FS)] on requirement
basis.

163.6 Bidders shall be technically ranked as per the net marks scored against
the evaluation criteria placed at Annexure-A-1. Bidder(s) scoring highest
net marks will be ranked as TR-1, the next highest as ranked as TR-2 and
so on.

163.7 Contract is to be awarded to the top ranked bidder as per procedure given
below:

(a) In case only one bidder is ranked as TR-1, the price bid of such
bidder shall only be opened.

(b) In case of tie in bidders ranked as TR-1, price bid of bidder ranked
as TR-1, with highest marks in ‘B’ in respect of ‘bit specific information’
as per the evaluation criteria specified at Annexure-A-1, shall only be
opened.
163.8 For assessing the reasonability of prices, bidders may be asked to submit
documents establishing the prices at which the bidder has supplied same
or similar type of bit to other Oil / Gas company in last 2 years. In case
the quoted prices are found to be on higher side in comparison to the
supply prices of bidders as above or the LPR of same Bit, negotiations
may be carried out by tender committee with the approval of Competent
Authority, as per the prevalent MM guidelines.

163.9 As only one bid i.e. ranked # 1 shall be considered for award of contract,
the Competent Purchase Authority shall be determined as per the powers
applicable in case of Single Tender, i.e. as per clause MP4 (d) of BDP.

163.10 Supplier shall mobilize the initial quantity within 35 days of placement of
S.O. Subsequent call-out orders shall be placed by the authorized
representative of ONGC, as and when required. Such call out quantity has
to be delivered within 15 days of issue of call-out order.

163.11 Required quantities of each type of bit shall be drawn from the stock
maintained by supplier.

163.12 The inspection of bits shall be carried out by ONGC representative after
receipt of bits in India.

163.13 Selection of suitable TCR/PDC bit of any size from the available lot of bits
will be made by ONGC.

163.14 Payment:

(a) In case of supplies to be made in PEL/ML areas, customs duty is

not payable by ONGC.

(b) However, for supplies to be made in non-PEL/ML areas, customs

duty charges shall be borne by the supplier. When customs duty
paid bit is used by ONGC, the catalogue bit price shall be paid to
the supplier alongwith customs duty against documentary
evidence.

(c) In order to avoid the customs related problems like payment of

customs duty in case of unused bits imported for PEL/ML areas
and claiming of duty draw back in respect of unused bits imported
for non-PEL/ML areas (i.e. imported and stocked by supplier
against call out by ONGC, but not actually drawn by ONGC till the
expiry of Consignment Rate Contract), the imported bits, not
exceeding the initially ordered quantity, shall be retained by ONGC
since the same can be put to use by ONGC, in view of the fact that
bits are consumed on regular basis. However, the initial quantity
should be ordered in such a way that the leftover quantity at the
end of the contract period is bare minimum.
 (d) Invoice shall be raised by supplier on monthly basis for bits
consumed during the month and the bits retained by ONGC at the
end of contract period as per (c) above.

(e) Quantity for which payment shall be made to the supplier should
not exceed the ordered quantity.

163.15 Provision shall also be kept for outright purchase of suitable left over bits
at the end of contract period, at the sole option of ONGC. Quantity of bits
retained at the end of contract period shall not exceed the initially ordered
quantity against the contract.

163.16 Contract duration shall be 3 years from the date of notification of Award of
Rate Contract, without any provision for price escalation and also without
any provision of extension of the contracts.

163.17 Other provisions of MM Manual and Instructions issued from time to time
shall be followed by all concerned, as in case of other tenders.
 Annexure – A- 1
Criteria for Ranking of Bidders
A. General Information:
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
1 Experience of Bit Highest among the 100 0.05
Manufacturer bidders
(Minimum Required Others Percentage to
experience – Five the highest
Years)
2. Sales volume of Highest among the 100 0.05
Bits for the last bidders
three years Others Percentage to
the highest
3. Expenditure on Highest among the 100 0.10
R&D for the last bidders
three years Others Percentage to
the highest
Total (A) (For 1 to 3 0.20
above)

B. Bit Specific Information

B. 1 For 17-1/2” Bit
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
4.1 No. of Bits Depth in Highest 100 0.20
used for 2000 M & among the
deep above. bidders
formation
drilling Others Percentage to
(Last three the highest
years)

4.2 Supply of bits (Nos.) Highest 100 0.20

during last 3 years to among the
below mentioned leading bidders
companies:
1. Shell 2.Cheveron
3.BP 4.Agip 5. Totalfina Others Percentage to
6.Statoil 7.Petrobras the highest
8.Unocol 9.Exxcon Mobil
10.Kerr Mcgee

4.3 Supply of Offshore Highest 100 0.05

bits to among the
Indian bidders
Companies Others Percentage to
during last the highest
3 years Onshore Highest 100 0.05
(Nos.) among the
bidders
Others Percentage to
the highest
4.4 Performance of bits
(Last three years)
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
Best Five Total Highest 100 0.03
bits depth Meterage among the
in 2000 M bidders
to 3999 M Others Percentage to
the highest
Average Highest 100 0.03
ROP among the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.05
bits depth Meterage among the
in 4000 M bidders
to 4999 M Others Percentage to
the highest
Average Highest 100 0.05
ROP among the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.07
bits depth Meterage among the
in above bidders
5000 M Others Percentage to
the highest
Average Highest 100 0.07
ROP among the
bidders
Others Percentage to
the highest
Total (B.1) (For 17-1/2” Bits) 0.80

B. 2 For 12-1/4” Bit

Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
5.1 No. of Bits Depth in Highest 100 0.15
used for 2000 M to among the
deep 4000 M. bidders
formation Others Percentage to
drilling the highest
(Last three Depth in Highest 100 0.15
years) 4000 M & among the
above. bidders
Others Percentage to
the highest
5.2 Supply of bits (Nos.) Highest 100 0.10
during last 3 years to among the
below mentioned leading bidders
companies:
1. Shell 2.Cheveron
3.BP 4.Agip 5. Totalfina Others Percentage to
6.Statoil 7.Petrobras the highest
8.Unocol 9.Exxcon Mobil
10.Kerr Mcgee
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
5.3 Supply of Offshore Highest 100 0.05
bits to among the
Indian bidders
Companies Others Percentage to
during last the highest
3 years Onshore Highest 100 0.05
(Nos.) among the
bidders
Others Percentage to
the highest
5.4 Performance of bits
(Last three years)
Best Five Total Highest 100 0.03
bits depth Meterage among the
in 2000 M bidders
to 3999 M Others Percentage to
the highest
Average Highest 100 0.03
ROP among the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.05
bits depth Meterage among the
in 4000 M bidders
to 4999 M Others Percentage to
the highest
Average Highest 100 0.05
ROP among the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.07
bits depth Meterage among the
in above bidders
5000 M Others Percentage to
the highest
Average Highest 100 0.07
ROP among the
bidders
Others Percentage to
the highest
Total (B.2) (For 12-1/4” Bits) 0.80

B. 3 For 8-1/2” Bit

Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
6.1 No. of Bits Depth in Highest 100 0.07
used for 2000 M to among the
deep 4000 M. bidders
formation Others Percentage to
drilling the highest
(Last three Depth in Highest 100 0.10
years) 4000 M to among the
5000 M. bidders
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
Others Percentage to
the highest
Depth in Highest 100 0.13
5000 M & among the
above. bidders
Others Percentage to
the highest
6.2 Supply of bits (Nos.) Highest 100 0.10
during last 3 years to among the
below mentioned leading bidders
companies:
1. Shell 2.Cheveron
3.BP 4.Agip 5. Totalfina Others Percentage to
6.Statoil 7.Petrobras the highest
8.Unocol 9.Exxcon Mobil
10.Kerr Mcgee

6.3 Supply of Offshore Highest 100 0.05

bits to among the
Indian bidders
Companies Others Percentage to
during last the highest
3 years Onshore Highest 100 0.05
(Nos.) among the
bidders
Others Percentage to
the highest
6.4 Performance of bits
(Last three years)

Best Five Total Highest 100 0.03

bits depth Meterage among the
in 2000 M bidders
to 3999 M Others Percentage to
the highest
Average Highest 100 0.03
ROP among the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.05
bits depth Meterage among the
in 4000 M bidders
to 4999 M Others Percentage to
the highest
Average Highest 100 0.05
ROP among the
bidders
Others Percentage to
the highest
Best Five Total Highest 100 0.07
bits depth Meterage among the
in above bidders
5000 M Others Percentage to
the highest
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
Average Highest 100 0.07
ROP among the
bidders
Others Percentage to
the highest
Total (B.3) (For 8-1/2” Bits) 0.80
B. 4 For 6” Bit
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
7.1 No. of Bits Depth in Highest 100 0.07
used for 2000 M to among the
deep 4000 M. bidders
formation Others Percentage to the
drilling highest
(Last three Depth in Highest 100 0.10
years) 4000 M to among the
5000 M. bidders
Others Percentage to the
highest
Depth in Highest 100 0.13
5000 M & among the
above. bidders
Others Percentage to the
highest
7.2 Supply of bits (Nos.) Highest 100 0.10
during last 3 years to among the
below mentioned leading bidders
companies:
1. Shell 2.Cheveron 3.BP
4.Agip 5. Totalfina Others Percentage to the
6.Statoil 7.Petrobras highest
8.Unocol 9.Exxcon Mobil
10.Kerr Mcgee
7.3 Supply of Offshore Highest 100 0.05
bits to among the
Indian bidders
Companies Others Percentage to the
during last highest
3 years Onshore Highest 100 0.05
(Nos.) among the
bidders
Others Percentage to the
highest
7.4 Performance of bits (Last
three years)
Best Five Total Highest 100 0.03
bits depth Meterage among the
in 2000 M bidders
to 3999 M Others Percentage to the
highest
Average Highest 100 0.03
ROP among the
bidders
Others Percentage to the
highest

Best Five Total Highest 100 0.05

bits depth Meterage among the
in 4000 M bidders
to 4999 M Others Percentage to the
highest
Average Highest 100 0.05
Sl. Parameters Allocation of Marks Weightage Marks
No. Factor
ROP among the
bidders
Others Percentage to the
highest
Best Five Total Highest 100 0.07
bits depth Meterage among the
in above bidders
5000 M Others Percentage to the
highest
Average Highest 100 0.07
ROP among the
bidders
Others Percentage to the
highest
Total (B.4) (For 6” Bits) 0.80

C.1: For Ranking of Bit Manufacturers of 17-1/2” Bits

Net Marks for 17-1/2”: Marks in (A) + Marks in (B.1)
C.2: For Ranking of Bit Manufacturers of 12-1/4” Bits
Net Marks for 12-1/4”: Marks in (A) + Marks in (B.2)
C.3: For Ranking of Bit Manufacturers of 8-1/2” Bits
Net Marks for 8-1/2”: Marks in (A) + Marks in (B.3)
C.4: For Ranking of Bit Manufacturers of 6” Bits
Net Marks for 6”: Marks in (A) + Marks in (B.4)
 Annexure – A -2

Details and Documents to be submitted for evaluation of Bits

Parameters Queries Supporting Response Supporting
Documents from bidder Documents
Required enclosed

Experience How long the company is Annual report

in the business of bit or any
manufacturing? published
document
Sales Volume Revenue from the bit -do-
sales for last three
years?
R&D Expenditure on R&D for -do-
last three years

Following information is to be provided for 17-1/2”, 12-1/4”, 8-1/2” and 6” Bits

separately. The information required is for the last three years.
Bits Sales Volume of Bits during last Any published Response Supporting
three years authentic from Documents
document bidder enclosed

Bits used in No. of bits used for Deep Drilling Last three years
deep drilling Depth 2000M – 3999M Bit record for
Depth 4000M – 4999M 2000M and
Depth above 5000M above depth
Multinational No. of Premium bits supplied to Purchase
clients following companies during last reference, annual
three years: reports or any
Shell, Cheveron, BP, Agip, other authentic
Totalfina, Statoil, Petrobras, documents.
Unocol, Exxcon Mobil, Kerr Mcgee
Supplies in No. of bits supplied to Indian Purchase
India Companies during last three years reference
for offshore
No. of bits supplied to Indian Purchase
Companies during last three years reference
for onshore
Performance of Best five bit performances in last Bit Records
bits three years in depth range of
2000M-3999M
4000M-4999M Bit Records
Above 5000M Bit Records