NTPC LIMITED

(A GOVERNMENT OF INDIA ENTERPRISE)

INVITATION FOR BIDS (IFB)

FOR

RLA/CA OF CRITICAL PIPING SYSTEM PACKAGE

FOR

SINGRAULI SUPER THERMAL POWER STATION, STAGE-I (5X200 MW)

LOCATED AT DISTRICT SONEBHADRA, STATE OF UTTAR PRADESH, INDIA

	(International Competitive Bidding)
IFB No.: CS-1110(R&M)-999-2	Date: 17.05.2014

1.0NTPC Limited (NTPC) invites sealed bids in Two Stages i.e. Stage-I (Techno-Commercial) Bid and Stage-II (Price) Bid from eligible bidders for aforesaid Package as per the brief particulars of Scope of Work mentioned hereinafter.

2.0SCOPE OF WORK

The brief scope of work is as given below:

The scope of the work for this package broadly includes pre shut down activities like Supply & erection of scaffoldings, access platforms, placement of NDT equipment, metallographic equipment etc. Removal of complete insulation material, Supply of complete insulation material for piping, complete condition assessment and residual life assessment analysis of Critical piping (Viz Main Steam, Hot Re-Heat, Cold Re-Heat, HP & LP Bypass system and feed water system), reinstalling new insulation , dismantling of scaffolding and removing it from site, submission of reports on Residual life assessment of critical piping carried out including recommendations for replacement of existing piping components for expected life extension of the said piping system by another 20 years. Preparation of Proposed Bill of quantity of piping, Bends & Fittings, Hangers and supports, which Contractor proposes for replacement based on the recommendations of the residual life assessment carried out by the Contractor, for each of the five units of 200 MW.

Detailed Scope of work is given in the Technical Specifications.

3.0NTPC intends to finance this Package through External Commercial Borrowings / Own Resources.

4.0Detailed specification, scope of work and terms & conditions are given in the bidding documents, which are available for examination and sale at the address given below and as per the following schedule:

Documents Sale Dates & Timings	17.05.2014 to 11.06.2014 (up to 1500 hrs. IST)
Last Date of Receipt of Query	17.06.2014
Last date for receipt of Techno–Commercial	02.07.2014 up to 1500 Hrs.(IST)
bid (Envelope-I) and Price bid (Envelope-II)
Techno–Commercial bid (Envelope-I) opening	02.07.2014 at 1530 Hrs.(IST)
Date & Time
Cost of Bidding Document	5,625/- (Rupees Five Thousand Six Hundred Twenty Five
	Only) or USD 125/- (One hundred Twenty Five only) per set.

Date for opening of Price Bid (Envelope-II) shall be intimated separately after opening of Techno–Commercial

5.0All bids must be accompanied by Bid Security for an amount of ` 2,293,000/- (Indian Rupees Two Million

Two Hundred Ninety Three Thousand only) or US Dollar 37,800/- (US Dollar Thirty Seven Thousand Eight Hundred only) in the form as stipulated in the Bidding Documents. ANY BID NOT ACCOMPANIED BY

AN ACCEPTABLE BID SECURITY IN A SEPARATE SEALED ENVELOPE SHALL BE REJECTED BY THE

EMPLOYER AS BEING NON-RESPONSIVE AND RETURNED TO THE BIDDERS WITHOUT BEING OPENED”.Bid (Envelope-I).

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6.0Qualifying Requirements of Bidders (QR):

In addition to the satisfactory fulfillment of the requirements stipulated under Section ITB (Instructions to Bidders), the following shall also apply:

6.1Technical criteria

6.1.1Route-1

6.1.1(a) The bidder should be a RLA/CA agency ,or, manufacturer of steam generator(or critical piping),or, Indian JV company of the OEM for steam generator(or critical piping),who is currently engaged in RLA/CA /R&M activity for equipment such as Steam generator/Critical piping in a power plant or high temperature alloy steel piping system(s ) in any process plant and must have conducted RLA/CA for at least one(1) power or process installation in last 7 years reckoned as on the date of Techno-commercial bid opening.

6.1.1(b) The bidder should have conducted or executed contract of RLA / CA involving (1) Metallographic analysis,(2) advanced UT such as Phased Array Technique / Time of Flight Diffraction technique, (3) Static stress analysis of piping for hanger design check and (4) FEA( Finite Element Analysis) based stress mapping/analysis of piping & its component for high temperature alloy steel piping of diameter at least 250 NB with process fluid temperature at least 440 Deg C in any process plant / Power Plant

The report(s) of the RLA/CA in respect of above four(4) activities in 6.1.1(b) ,carried out by the bidder should have been submitted to the employer/client/owner of the reference plant(s) prior to the date of techno- commercial bid opening and the successful completion certificate(s) should have been issued to the bidder by employer/ client /owner for conductance of the relevant RLA/CA study of critical piping by bidder & submission of applicable RLA/CA report(s) by it

6.1.2Route-2

In case the bidder meets 6.1.1 (a) above but does not meet the requirements for more than one (1) activity out

of four(4) activities in	6.1.1 (b) then it shall associate/collaborate with an agency who fully meets the
requirements of clause	6.1.1 (b) above.

In such an event (of association/collaboration) however the bidder should get the complete scope of RLA/CA activities/tests/analyses as described in tender technical specification, done by its associate/collaborator and shall furnish the reports/results/recommendations of the same duly vetted/signed by associate/collaborator to the employer for the purpose of execution of this package.

In case, qualification through association / collaboration route is sought by the bidder , the bidder is required to furnish the joint deed of undertaking ( JDU) jointly executed by it along with its associate / collaborator for the successful performance of the part of the contract for which associate / collaborator is responsible, as per format enclosed in the bidding document wherein the associate / collaborator and the bidder shall be jointly & severely liable to the employer to perform all contractual obligation limited to the scope of work for which associate / collaborator is responsible. This deed of joint undertaking shall be submitted along with Techno- Commercial bid, failing which bidder shall be disqualified and its bid rejected. Further the bidder’s associate / collaborator in such case shall be required to furnish an on-demand bank guarantee as per format enclosed with the bidding document for a value equal to 1 % ( one Percent) of the total contract price in addition to the contract performance security to be furnished by the bidder.

Note:

1.RLA means `Residual Life Analysis’ & CA means `Condition Assessment’ and R&M means Renovation and Modernization.

2.Critical piping systems mean either Main Steam or Hot Reheat piping in a power plant.

3.Experiences of various activities under RLA/CA (e.g. metallographic analysis, advanced UT employing Phased Array / Time of flight diffraction, static stress analysis and FEA based stress mapping/analysis ) mentioned in 6.1.1 (b) above are acceptable in separate installations also.

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4.In case the bidder or associate has not conducted stress analysis of piping for hanger design check in 6.1.1 ( b) above as a part of RLA, the experience of Stress analysis of high temperature piping (at least 440 Deg C or

above) as a part of design & engineering activity for any other piping system(s) ( not necessarily undergoing RLA / CA) shall also be acceptable.

5.Advanced UT (Phased array technique/ Time of flight diffraction technique) done on a pipe header / drum by the bidder or associate with operating temperature more than 440 Deg C shall also be considered to have fulfilled requirement at 6.1.1 (b).

6.In case the bidder fulfils the requirements at 6.1.1 (a) and 6.1.1(b) except only one(1) activity in 6.1.1 (b) above, then the bidder may be considered qualified under route-1 provided it subcontracts the particular activity (in which the main bidder is deficient w.r.t. the requisite experience as called for in 6.1.1(b))to an agency/ organization which fulfills the qualification requirement related to that activity as per 6.1.1 (b).

7.If alloy steel piping conveys process fluid of temperature at least 440 Deg C or above , it will be considered as high temperature alloy steel piping

6.2Financial criteria

6.2.1Financial criteria of Bidder

(a)The average annual turnover of the Bidder, in the preceding three (3) financial years as on the date of Techno-Commercial bid opening, should not be less than INR 85 million (Indian Rupees Eighty Five million only) or in equivalent foreign currency.

(b)The Net Worth of the Bidder as on the last day of the preceding financial year should not be less than 25% of its paid-up share capital.

(c)	In case the Bidder is not able to furnish its audited financial statements on stand alone entity basis,
	the unaudited unconsolidated financial statements of the Bidder can be considered acceptable
	provided the Bidder further furnishes the following documents on substantiation of its qualification:

(i)Copies of the unaudited unconsolidated financial statements of the Bidder along with copies of the audited consolidated financial statements of its Holding Company.

(ii)A Certificate from the CEO/CFO of the Holding Company, as per the format enclosed in the bidding documents, stating that the unaudited unconsolidated financial statements form part of the consolidated financial statements of the company.

In case where audited results for the last preceding financial year are not available, certification of financial statements from a practicing Chartered Accountant shall also be considered acceptable.

(d)In case a Bidder does not satisfy the financial criteria, stipulated at Cl. 6.2.1 (a) and/ or Cl 6..2.1 (b) above on its own, its holding company would be required to meet the stipulated turnover requirements at Cl.6.2.1 (a) above, provided that the net worth of such holding company as on the last day of the preceding financial year is at least equal to or more than the paid-up share capital of the holding company. In such an event, the Bidder would be required to furnish along with its Techno-Commercial bid, a Letter of Undertaking from its holding company, supported by Board Resolution of the holding company, as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support for the execution of the Contract by the Bidder in case of award.

(e)The unutilized line of credit for fund based and non-fund based limits with cash and bank balances including fixed deposits of the Bidder as on a date not earlier than 15 days prior to the date of Techno Commercial bid opening, duly certified by its Bankers should not be less than INR 49 million (Indian Rupees Forty Nine million only) or in equivalent foreign currency. In case certificates from more than one bank are submitted, the certified unutilized limits shall be of the same date from all such banks.

(f)Where another Company of the group acting as the Treasury Centre is responsible for Treasury Management of the Bidder having combined credit/guarantee limit for the whole group, the Bidder would be required to provide a Banker’s certificate regarding the unutilized line of credit for fund based and non-fund based limits together with cash and bank balances including fixed deposits available to such Treasury Centre. Further, Treasury Centre shall certify that out of the aforesaid limits certified by

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its bankers’, the Bidder shall have access to the line of credit of a level not less than the specified amount at Cl.6.2.1 (e) above. In proof of this, the Bidder would be required to furnish along with its Techno-Commercial bid, a Letter of Undertaking from the Treasury Centre, supported by a Resolution passed by the Board of Directors of the holding company, as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support for the execution of the Contract by the Bidder in case of award.

(g)In case the Bidder’s unutilized line of credit for fund based and non-fund based limits specified at Cl

6.2.1 (e) above is not sufficient, a comfort letter from one of the bankers specified in the bidding documents unequivocally stating that in case the Bidder is awarded the contract, the Bank would enhance line of credit for fund based and non-fund based limits to a level not less than the specified amount to the Bidder or to the Treasury Management Centre as the case may be, shall be acceptable.

6.2.2Financial criteria of Associate

(a)For Bidders seeking qualification through clause no 6.1.2 above, the average annual turnover of their Associate (meeting the requirement of Clause 6.1.1(b) above) in the preceding three (3) financial

years as on the date of techno-commercial bid opening, should not be less than INR 40 million (Indian Rupees Forty million only) or in equivalent foreign currency.

(b) The Net Worth of the Associate, as on the last day of the preceding financial year	should not be
less than 25% of its paid-up share capital.

(c)In case the Associate is not able to furnish its audited financial statements on stand alone entity basis, the unaudited unconsolidated financial statements of the Associate can be considered acceptable provided the Associate further furnishes the following documents on substantiation of its qualification:

i)Copies of the unaudited unconsolidated financial statements of the Associate, along with copies of the audited consolidated financial statements of the Holding Company of Associate.

ii)A Certificate from the CEO/CFO of the Holding Company, as per the format enclosed in the bidding documents, stating that the unaudited unconsolidated financial statements form part of the consolidated financial statements of the company.

In cases where audited results for the last preceding financial year are not available, certification of financial statements from a practicing Chartered Accountant shall also be considered acceptable.

(d)In case the Associate does not satisfy the financial criteria, stipulated at Cl. 6.2.2 (a) and/ or Cl.6.2.2

(b)above on its own, its holding company would be required to meet the stipulated turnover

requirements at Cl.6.2.2 (a) above, provided that the net worth of such holding company, as on the last day of the preceding financial year is at least equal to or more than the paid-up share capital of the holding company. In such an event, the Associate would be required to furnish along with Techno- Commercial bid, a Letter of Undertaking from the holding company, supported by Board Resolution of the holding company (as per the format enclosed in the bidding documents), pledging unconditional and irrevocable financial support to the Associate to honour the terms and conditions of the Deed of Joint Undertaking in case of award of the contract to the Bidder with whom Associate is associated.

(e)For Bidders seeking qualification through clause no 6.1.2 above, the unutilized line of credit for fund based and non-fund based limits with cash and bank balances including fixed deposits of their Associate (meeting the requirement of Clause 6.1.1 ( b) above) as on a date not earlier than 15 days prior to the date of techno-commercial bid opening, duly certified by Associate’s Bankers should not be less than INR 11 million (Indian Rupees Eleven million only) or in equivalent foreign currency. In case certificates from more than one bank are submitted, the certified unutilized limits shall be of the same date from all such banks.

(f) Where another Company of the group acting as the Treasury Centre is responsible for Treasury Management of the Associate having combined credit/guarantee limit for the whole group, the associate would be required to provide a Banker’s certificate regarding the unutilized line of credit for fund based and non-fund based limits together with cash and bank balances including fixed deposits available to such Treasury Centre. Further, Treasury Centre shall certify that out of the aforesaid limits certified by the bankers’, the Associate shall have access to the line of credit of a level not less than the amount specified at Cl. 6.2.2 (e) above. In proof of this, the Bidder would be required to furnish

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along with its techno-commercial bid, a Letter of Undertaking from the Treasury Centre, supported by a Resolution passed by the Board of Directors of the Associate’s holding company, as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support to the associate to honor the terms and conditions of the Deed of Joint Undertaking, in case of award of the contract to the Bidder with whom Associate is associated.

(g)In case the Associate’s unutilized line of credit for fund based and non-fund based limits specified at Cl.6.2.2 (e) above is not sufficient, a comfort letter from one of the bankers specified in the bidding documents unequivocally stating that in case of award of the contract to the Bidder with whom Associate is associated, the Bank would enhance line of credit for fund based and non-fund based limits to a level not less than the specified amounts to the associate or to the Treasury Management Centre as the case may be, shall be acceptable.

NOTES FOR CLAUSE 6.2.1 & 6.2.2

(i)Net worth means the sum total of the paid up share capital and free reserves. Free reserve means all reserves credited out of the profits and share premium account but does not include reserves credited out of the revaluation of the assets, write back of depreciation provision and amalgamation. Further any debit balance of Profit and Loss account and miscellaneous expenses to the extent not adjusted or written off, if any, shall be reduced from reserves and surplus.

(ii)Other income shall not be considered for arriving at annual turnover.

(iii)For unutilised line of credit for fund based and non-fund based limits and Turnover indicated in foreign currency, the exchange rate as on seven (7) days prior to the date of Techno Commercial bid opening shall be used.

2.3Notwithstanding anything stated above, the Employer reserves the right to assess the capabilities and capacity of the Bidder / his collaborators / associates / subsidiaries / group companies to perform the contract, should the circumstances warrant such assessment in the overall interest of the Employer.

7.0NTPC reserves the right to reject any or all bids or cancel / withdraw the Invitation for Bids without assigning any reason whatsoever and in such case no bidder / intending bidder shall have any claim arising out of such action.

8.0 A complete set of Bid documents may be purchased by any interested bidder on submission of a written application and payment (non-refundable) of the cost of bidding documents as mentioned above in the form of a Crossed Account Payee Demand Draft in favour of NTPC Limited, New Delhi. The bidding documents can also be downloaded from http://www.ntpctender.com on registration and online payment (non-refundable) towards cost of bidding documents and the downloaded documents can be used for bidding purposes.

In case the registered bidders who have downloaded the bidding documents require an additional manual copy of the documents then such bidders shall be require to purchase the manual copy of the bidding documents following the procedure detailed above.

9.0Prospective bidders from U.P State are compulsorily required to provide TIN number at the time of purchase of bidding documents from office of NTPC.

10.0Issuance of Bid Documents to any Bidder shall not construe that such Bidder is considered to be qualified. Bids shall be submitted and opened at the address given below in the presence of Bidder's representatives who choose to attend the bid opening.

11.0Address for communication:

AGM (CS-III) /Sr. Mgr. (CS-III)/Dy. Mgr. (CS-III) NTPC Limited,

Sixth Floor, Engineering Office Complex, A-8A, Sector-24, NOIDA,

Distt. Gautam Budh Nagar, (UP), INDIA Pin - 201301

Fax No.: 0091-120 – 2410295

Tel. No.: -120 – 4946664 / 4946605 / 4948627

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