ELIGIBILITY CRITERIA FOR SEA PROECTION WORKS ALONG ENNORE EXPRESSWAY IN CHENNAI
1. The bidders proposing to submit their bids for the works are expected to satisfy all the following minimum criteria regarding their general and particular experience, financial position, personnel and equipment capabilities and other relevant information as demonstrated by the Bidder's responses in the forms attached to the Letter of Invitation. The base year will be taken as 2001-02. The following enhancement factors will be used for the cost of works executed and the financial figures to bring to a common base for the value of works completed.
Year || Multiplication Factor|
|1995-1996 || 1.77|
1. The Bidders shall indicate actual figures of cost and amount for the works executed by them in the schedule without accounting for the above mentioned factors
2. In case the financial figures and value of completed works are in foreign currency, the above enhanced factors shall not be applied. Instead, the foreign currency will be converted into USD at the rates prevailing at the end of respective periods, which in turn will be converted into Indian Rupees using a conversion factor 1 USD=Rs 47.
(a) Experience and Turnover criteria
The Bidder shall provide evidence that it has been actively engaged in the construction of similar or related works during the last 5 years in the role of prime contractor, partner in joint venture or subcontractor.
(ii) Particular Construction Experience:
The Bidder shall provide evidence that it has successfully completed or substantially completed within the last six years commencing from the year 1995-96 at least one contract pertaining to construction of gryones or other sea protection works of size of atleast 40% of the cost of work. The works may have been executed by the Bidder as prime contractor or proportionately as member of joint venture or subcontractor. Substantially completed works mean those which are at least 70% complete as on date of submission and continuing satisfactorily. For this, a certificate from the respective employer shall be submitted along with the application incorporating clearly the contract value, billing amount, date of commencement of works, satisfactory performance of the Contractor and any other relevant information.
Bidder shall have during the last five years commencing from the year 1996-97 a minimum average annual turnover of 40% of cost of work p.a. from all sources including that from construction related activities.
(c) Ability to own/lease relevant equipment
The Bidder shall be required to own or have assured access through hire or lease to the key items of equipment required for implementation of the project. A minimum number of items of the equipment/plant and Machinery required for the project are to be given in part I of Schedule II of the ITB. The Bidder shall give an undertaking to make arrangements to procure all the Plant and Machinery required for the project.
(d) Financial capability
The Bidder shall demonstrate that it has access to, or has available liquid assets (aggregate of working capital, cash in hand and uncommitted bank guarantees), lines of credit and other financial means (independent of any flow requirements estimated to be a minimum of 10% of the cost of work, net of the Bidder's commitments towards other contracts.
In the relevant Form to part II of Schedule I, the Bidder shall also demonstrate, to the satisfaction of the Employer, that it has adequate source of finance to meet the cash flow requirement of works currently in progress and for future contract commitments.
Copies of the audited balance sheets for the last five years shall be submitted. The Bidder must demonstrate the current soundness of the Bidder's financial position and indicate its prospective long-term profitability (including the estimate financial projection for the next tow years). If deemed necessary, the Employer shall have the authority to make inquiries with the Bidder's bankers and the relevant authorisation letters are to be submitted along with the relevant Form to part II of Schedule I.
(e) Litigation history
The Bidder shall provide accurate information about any litigation or arbitration resulting from contracts completed or ongoing under its execution over the last five years. A consistent history of awards against the Bidder or any partner of a joint venture will result in failure of the Bidder to qualify in the subsequent steps of the selection process.
(f) Capability of key personnel
The Bidder shall supply general information on the management structure of the firm and shall make provision for suitably qualified personnel to fill the key positions as required during contract implementation as listed relevant schedules of ITB.
(g) Bid capacity
The Bidders shall have a bid capacity of more than the total estimated cost of the works.
The available bid capacity shall be calculated as under
Assessed Available Bid Capacity = (A*N*2-B), where
A = Maximum value of civil engineering works executed in any one year during the last five years (updated to current price levels) 1996-97 to 2000-2001 which will take into account the completed as well as works in progress;
B = Value at current price level (2000-2001) of the existing commitments and ongoing works to be completed during the next 2 years (period of completion of works for which bids are invited);
N = Number of years prescribed for completion of works for which the bids are invited (i.e., 2 years)
(i) In case of a joint venture, the available bid capacity will be applied for each partner to the extent of his proposed participation in the execution of the works and combined.
(ii) The Statements showing the value of existing commitments and ongoing works as well as the stipulated period of completion remaining for each of the works listed should be countersigned by the Engineer in charge not below the rank of an Executive Engineer or equivalent or certified by authorised signatory of bidder
(h) Joint ventures
Joint venture partners would be limited to three (including the lead partner) members.
One of the partners, who is responsible for performing key function in the contract management or is executing major component of the proposed contract, shall be nominated as being in charge during the bidding period and in the event of a successful bid, during contract execution. The partner in charge shall be authorised to incur liabilities and receive instructions for and on behalf of any and all partners of the joint venture; this authorisation shall be evidenced by submitting power of attorney signed by legally authorised signatories of all the partner
All partners of the joint venture shall be liable, jointly and severally, during the bidding process and for the execution of the contract in accordance with the contract terms, and a statement to this effect shall be included in the authorisation as above. The bid shall be signed so as to legally bind all partners, jointly and severally.
Joint ventures must comply with the following requirements:
The joint venture must satisfy collectively the eligibility criteria as described in this section. For this purpose, the following information of each member of the joint venture may be added together to meet the collective eligibility criteria:
(i) Average annual turnover
(i) particular construction experience
(ii) Capability of key personnel
(iii) Ability to own/lease relevant equipment
(iv) Financial capacity
Each partner must satisfy the following criteria individually:
(i) General construction experience
(ii) Adequate sources to meet the financial commitments on other contracts
(iii) Financial capability
(iv) Litigation history
The lead partner shall meet not less than 50% of the following criteria:
(i) Average annual turnover
(ii) particular construction experience
(iii) Financial capability
Each of the remaining partners shall meet not less than 25% of the following criteria:
(i) Average annual turnover
(ii) Financial capability
A copy of the Joint Venture Agreement (JVA), specific to this project, entered into by the partners shall be submitted with the Bid. Alternatively, a letter of Intent to execute a JVA in the event of successful bid shall be signed by all partners and submitted with the Bid together with a copy of the proposed Agreement. Pursuant to the foregoing, the JVA shall include among other things, the joint venture's objectives, the proposed management structure, the contribution of each partner to joint venture operation, the commitment of the partners to joint and several liability for due performance, recourse/sanctions within the joint venture in the event of default or withdrawal of any partner and arrangements for providing the required indemnities.
(j) All bidders shall also furnish the following information (in case of joint ventures, information should be furnished by each partner of the Joint Venture)
(i) Undertaking that the bidder would be able to invest a minimum cash upto 25% of Contract value of the work (in proportion of participation in case of joint ventures) during the implementation of contract
(ii) Evidence of access to or availability of credit facilities certified by bankers (not more than three months old) (minimum 10% of estimated cost of project)
(iii) Latest Income Tax clearance certificate from the concerned department in case of firms incorporated in India
(k) Public sector companies
Public Sector Enterprises may be eligible to qualify if, in addition to meeting all the above requirements, they are also:
(i) Commercially oriented legal entities distinct from the Employer;
(ii) Financially autonomous, for which the Bidder must demonstrate with reference to requirements in their constitution to provide separate audited accounts and return on capital, powers to raise loans and obtain revenues through sale of goods or services; and
(iii) Managed autonomously.