Lara Super Thermal Power Project

NP-

Ref.No: NTPC/LARA/C&M/CS3/1030 Dated: 05.09.2018

Tender Committee Recommendation for the Work of “Balance Civil Work Unit1 & 2
Offsite & Axillary Building and Administration building for NTPC Lara

Sub: Tender Committee Recommendation for the Work of “Balance Civil Work
Unit1 & 2 Offsite & Axillary Building and Administration building for NTPC Lara”
Reg.

Name of the Package Balance Civil Work Unit1 & 2 Offsite

& Auxillary Building and
Administration building
Approved Cost Estimate ₹.23,86,04,337.00
Mode of Tendering. Open Tender Basis
Contract Period 18 Months
PR No. 400034128 Dated 03.07.2018
Actual Date of BOD (Technical BID) 08.08.2018
Actual Date of BOD (Price BID) 27.08.2018
1. The Techno administrative approval for the subject work was initiated by Civil
Construction Deptt and approval was accorded by the Competent Authority vide
Note Sheet Ref.No. NTPC/LARA/Civil/2018/03 dated 23.04.2018 (refer NP-01 to NP-
04). Civil Construction Deptt. forwarded the Techno-Administrative approval of the
Competent Authority including Technical Specification, Drawings, Brief Scope of
Work, BOQ and approved Cost Estimate for the subject work with PR 400034128 on
25.05.18. The subject work is on risk and cost of EIEL.

2. The Cost Estimate duly vetted by Finance Deptt. for the subject package is
₹.23,86,04,337.00. The QR for the subject package was furnished by TS Deptt. on
28.06.2018 after review of Standing Committee for QR and on approval of the
Competent Authority (Refer NP-06 to 21). Open tender for the subject work was
floated vide NIT No.9900159986 dated 03.07.2018 in Gepnic portal after taking
approval from the Competent Authority (refer NP-22).

3. A Committee with members from Indenting deptt., C&M and F&A was constituted
and approved by the Competent Authority to evaluate the qualifying requirement and
finalise the award recommendation to put up the same to the Competent Authority
(refer NP-23), the members of the Committee are as under:
i. Mr. Shailendra Vaidya, DGM(C&M)
ii. Mr. V. M. Sundaram DGM (F&A)
iii. Mr. H. K. Sahu Sr. Mgr.(CCD)

4. Schedule end date of bid submission was on 31.07.2018. It was observed that only
two bidders have submitted the bid online. The bid submission date was extended
upto 06.08.2018 and technical bid opening date was extended upto 08.08.2018 after
issuing corrigendum in Gepnic portal (NP-25). Technical bids were opened on
08.08.2018 (RHS-400P).

5. The technical offers were evaluated for all the three bidders who submitted the bids.
After evaluation of offers it is observed that all the three bidders are meeting the
Qualifying requirement (RHS-449P). The approval for opening of Price bids was
 Lara Super Thermal Power Project
NP-

Ref.No: NTPC/LARA/C&M/CS3/1030 Dated: 05.09.2018

Tender Committee Recommendation for the Work of “Balance Civil Work Unit1 & 2
Offsite & Axillary Building and Administration building for NTPC Lara

accorded by the Competent authority (refer NP-26). Accordingly, Price bids of

Vendors who have qualified the qualifying requirement were opened on 27.08.2018
in Gepnic portal. CS was prepared and vetted by (F&A), as per the CS, M/s Monte
Carlo Ltd. is the L1 agency and has quoted ₹ 28,09,42,152.70 which is 17.74%
above the estimated rates (refer file page 451-472P//Vol-I & NP-26).

6. The Brief Summary of Comparative Statement is as below:

S. Name of Agency Offered %Above/Below Position

NO. Amount Estimate
1 M/s Monte Carlo Ltd 280942152.70 17.74 % Above L1
2 M/s RSB Pvt Ltd 315176393.30 32.09 % Above L2
3 M/s RVPR Construction Pvt Ltd 317882145.50 33.23 % Above L3

.
7. Approval was taken from the Competent authority to call the agency for pre award
discussion (NP-21) Pre award discussions with representative from M/S Monte
Carlo Limited were held from 30.08.2018. to 04.09.2018 .After prolonged discussion
and deliberations M/S Monte Carlo Ltd, vide mail dtd 31.08.2018, offered an overall
discount of 0.2% stating that this is their final price. (RHS-474P).
On this, committee further asked the agency for justification of their quoted price.
M/s Monte Carlo replied the query vide letter dated 04.09.2018 (RHS 478-479P)
mentioning following reasons:
Quote

 The proposed work is left out work and having at the multiple locations. So
executing this type of work is costly as compared to fresh green field work.
 The subject work is included various high rise buildings including admin
building (G+4) and drill tower building (15m), which is incomplete. So it is
required a lot of extra scaffolding materials and lifting tools like builder hoist
etc to execute the work.
 The cost of diesel, labors and other commodities have gone up very high in
the recent past. Even the cost of diesel is getting revised upward every day.

Unquote

8. Rate justification: The estimate was prepared on the basis of LOA No-CS-9548-
315A-9 dated 11.04.2013 of M/s EIEL, after considering 20% escalation. The
modified rate with 0.2% overall discount, obtained after discussions with M/s Monte
Carlo, the L-1 agency, is ₹ 28,03,80,268.39. The final obtained contract price is
17.50% above the estimated cost.

Tender Committee reviewed the reasons given by M/s Monte Carlo with other
relevant facts and concluded that:

a) Subject work is being awarded at risk and cost of M/S EIEL.

 Lara Super Thermal Power Project
NP-

Ref.No: NTPC/LARA/C&M/CS3/1030 Dated: 05.09.2018

Tender Committee Recommendation for the Work of “Balance Civil Work Unit1 & 2
Offsite & Axillary Building and Administration building for NTPC Lara

b) The subject work is left out balance work from “Main Plant and Offsite
Civil Works Package” awarded to M/S EIEL in 2013 at a total contract
price approx ₹ 400 Crores. The estimated cost of subject offloaded work
is only approx ₹ 24 Crores after adding 20% escalation. Thus there is
wide difference in scale of both these works.
c) COD of Unit-1 and Unit-2 is being planned with in this financial year. The
construction of miscellaneous buildings of U-1 & 2, Offsite buildings and
Admin building is urgently required for smooth operation and running of
units after COD.
d) It may also be mentioned that construction cost will be part of capital cost
on which return on investment (ROI) from CERC is envisaged, any further
delay will cause loss in such ROI. Keeping in view of urgent requirement
of these buildings, the work may be awarded. Also the party has given no
deviation certificate to abide and fulfil and comply with all the terms
conditions and provisions of the tender documents.
e) The final rates obtained from M/s Monte Carlo has been arrived at by
competitive bidding and considerably lower than L2 and L3 bidders.

Considering all the points jointly mentioned above from para (a) to (e) along with the
justifications given by M/s Monte Carlo, committee opined that ₹ 28,03,80,268.39,
the final obtained contract price which is 17.50% above the estimated cost is
reasonably justified.

Committee recommends awarding the contract at this price with below mentioned
salient contract conditions:

Terms and Condition of Contract:

A. Payment Terms: The payment will be done in line with GCC.

B. Liquidated Damages: In case the work is delayed in part or in full as per above
time schedule, the Compensation for delay will be payable by you @ ½ % per
week maximum to 7½ % of contract value.

C. Taxes: Income tax/commercial tax at source from all payments due to the agency
under this Contract in accordance with the Income Tax Act, 1961/ commercial tax
Act as applicable in the state of Chhattisgarh and rules made there under including
any amendments or modifications thereof shall be deducted.

D. GST: GST Extra

E. Security Deposit: Security deposit @1% will be retained from running bills. The
SD will be released on successful completion of Defect liability period and on
certification of EIC.
 Lara Super Thermal Power Project
NP-

Ref.No: NTPC/LARA/C&M/CS3/1030 Dated: 05.09.2018

Tender Committee Recommendation for the Work of “Balance Civil Work Unit1 & 2
Offsite & Axillary Building and Administration building for NTPC Lara

F. Defect Liability Period: shall be twelve months from the date of completion.

G. Performance Bank Guarantee: PBG@10% of the value of the contract to be

submitted before start of work. The BG will be released 90 days after completion of
defect liability period.

H. Insurance: Contractor shall be solely responsible to take and maintain all

insurance necessary for performing the works under this Contract.

I. Relevant clauses of NTPC GCC for Civil work will be applicable.

.
J. Agency shall abide by the statuary labour and safety law (PF and labour insurance)
and royalty compliances.

K. Date of Start & Duration of the Contract: Date of Start will be within the seven
days after release of Purchase order/LOI or as per the direction of EIC and duration
of the work is eighteen months.

L. BOQ, Scope of work, terms and conditions as enclosed with the tender enquiry
9900159986 will form part of the contract.
Recommendation: In view of the above it is recommended to place a PO on
Open tender basis to M/s Monte Carlo. Ltd. for the work Balance Civil Work
Unit1 & 2 Offsite & Axillary Building and Administrative building for ₹.
28,03,80,268.39 as per above terms and conditions.

The Power of approval vests with ED as per Section-I Clause 4.1(a) of DOP-2018.
Put up for approval of Competent authority please

(Shailendra Vaidya) (H K Sahu) (V M Sundaram)

DGM (C&M) Sr. Mgr.(CCD) DGM (F&A)

DGM(CS)
AGM (CCD)

AGM (C&M)

GM (Project)

AGM (F&A)

HOP (Lara)

RED(WR-2)