NATIONAL METALLURGICAL LABORATORY

JAMSHEDPUR 831 007

TENDER DOCUMENT

OF

INDUCTION FURNACE –
50 kg CAPACITY

File No. NML-3(2/MEF/SA)/2010-PS(34) dated 12/10/2010

Page 1 of 17
 ANNEXURE - I
File No. NML-3(2/MEF/SA)/2010-PS(34) dated 12/10/2010

TECHNICAL SPECIFICATIONS FOR INDUCTION FURNACE – 50 kg Capacity

SCOPE:

Supply, installation and commissioning of coreless air Induction melting Furnace/s

complete with cooling & fume extraction system

The scope will be to supply, install, commission and on-load test run the supplied
equipment with all accessories and hand over the same as ready to use condition as per
mutually agreed time schedule. The scope will also include all
works/electrics/items/materials/consumables/tools & tackles needed to carry out the job
in totality & successfully except space and infrafacility (3 phase electrical power & potable
water) at single point. All the supplied items will be in supplier's custody till successful
handing over to purchaser. The job will be on turnkey basis. Essential spares including
crucibles are to be indicated separately.

National Metallurgical Laboratory (NML) will provide covered space with

illumination, electrical power and potable water (including emergency water) at single
point for the supplied system as indicated by the supplier. NML will also provide charge
materials, Oxygen cylinder and Sulphur. All other jobs are to be carried out by the
supplier to ensure successful commissioning of the total system so that the facility can be
utilised immediately to its full rated capacity.

APPLICATION:

The equipment will be used for R & D purposes in National Metallurgical

Laboratory (NML) and materials to be melted are primarily copper, Nickel, Cobalt,
Manganese and Iron (30-60%) alloys. Melt may be treated with Oxygen and Sulphur So
proper fume collection and extraction system to take the fumes out of the shed. But it will
also be used for other ferrous and non-ferrous materials. Two furnaces, 10 kg & 50 kg are
to be run by a single power pack of medium frequency, one at a time, where temperature
on higher side will be minimum 16500C

LOCATION:

This will be housed in Magnesium Plant area of National Metallurgical Laboratory.

This location is about 3km from NML main campus. Electrical power and potable water
are available in the site.

UNIT SPECIFICATION:
Furnace:

Two coreless air induction furnaces 10 kg & 50 kg capacity, powered by common

power pack of medium frequency (to be run one at a time), mounted on rigid support for
proper pouring by tilting with current leak detection system and proper insulation

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including prevention of corona discharge at low vapour pressure and fume collection, &
extraction system as envisaged :

Capacity 10 kg 50 kg
Temperature 16500C 16500C
Pouring system Manual, geared Hydraulic
Lining MgO MgO

Hydraulic system:
The hydraulic pouring system is to be complete with adequately protected
actuators, necessary pumping unit complete with pump, motor, starter, reservoir, piping
etc with electrics and consumables with control in Control & Monitor unit.

Cooling water system:

The cooling water system to cool down the water to 25 0C –300C is to be complete
with pre-treatment, if required, and Cooling Tower. Maximum outside ambient
temperature at site is 500C. The system has to be complete in all respects with control in
the Control & Monitor unit. Water tank of 2000 L capacity with pump and one standby
pump in the circuit. Non returnable valve for emergency supply of water

Fume extraction system:

Provisions are to be made to take out the gases with hood in position ensuring
ease of operation and maintenance. Movable single fume-hood of 10 meter duct height
and one bag filter collection system for both the furnaces is acceptable.

Powerpack:

One common powerpack will be used for both the furnaces, one at a time, with
easy switch selector over from one to another. This should be of medium frequency,
energy efficient, solid state unit with sound safety and protection features capable of
supplying full power throughout the melt cycle with appropriate snubbers and filters for
power line protection. It should be capable of melting the indicated charge at the rate of
100 kg/hr with minimum top temperature of 1650 0C. The unit should use efficient
components eg SCRs, IGBTs etc. in power circuit and quick acting protection
components eg. Semiconductor fuses, fast acting MCCBs. It should be ensured that on
load, the line power factor will be 0.95+. It should have appropriate short circuit
protection; complete ground/current leak detection systems are also to be provided. The
followings are envisaged for the powerpack:

Rated kW 75
Nominal frequency 3000Hz
kVA required at input 90
Input power 415V, 50 Hz
Melting rate 100 kg/hr

The supplier is free to quote different suitable configuration ensuring the indicated
melting rate of 100 kg/hr

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Control & Monitor:

All functional parameters needed to control and monitor the total system to ensure
efficient running including tackling safety & emergency situation as well as maintaining
melt quality, are to be addressed. Some examples are:

 Direct reading digital and Analog instruments for frequency, KWH meter,
voltage, current, temperature etc (for furnace)
 Power control knob
 On/Off push button switch / emergency switch
 Selector switch (to select either of the furnaces for energising)
 Circuit monitoring & indicating other parameters e.g. water pressure,
temperature, leaks etc. Optical radiation pyrometer for measurement of
temperature of the melt.

Cabinet:

Closed, painted & aesthetically pleasing metal cabinet with doors and seals should
have proper safety and interlocking features with provisions for easy connection and
maintenance of electrical power, water and pressurised fluid system.

Other Accessories and Spares (To be quoted separately for each):

 Silica lining material - 1 MT

 Magnesite lining material - 1 MT
 Magnesite crucible for 10 kg furnace - 50 nos
 Spare pump of suitable capacity for cooling water tank – 1 no
 Water cooled led with SS clamps 2 nos for 10 kg and 2 nos for 50 kg
furnace
 Pressure pipe tube for hydraulic system
 Hydraulic oil - 50 L
 Oil filter for hydraulic pump - 2 nos
 Spare “O” rings used in different parts of location in induction furnace – 2
nos for each locations
 Spare parts required for panels
 Temperature sensors - 6 nos each
 Water pressure sensors - 6 nos each
 Fuse for different current capacities used in the system – 25 nos each
 Tools and Tackles

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GENERAL:

 Two Bid systems should be followed. Technical Bid should include Time
Schedule for the whole work
 Party should have minimum fifteen years of experience on Induction melting
furnace (on equivalent capacity) manufacturing and sales services.
 Credentials for carrying out similar jobs are to be provided
 Infrafacility requirements including space are to be indicated
 Necessary drawings are to be submitted for approval before execution
 All necessary documents, drawings and manuals for operation & maintenance
are to be supplied
 All statutory norms & practices are to be followed including those of NML
 All supplied items will be in supplier's custody till handing over after successful
commissioning
 All bought out items should be of reputed make
 NML works 5day week from 9-15hrs to 5-45hrs. This may be changed as per
need on specific request
 NML may be contacted for further technical clarifications, if required, with prior
appointment.
 Pre-dispatch inspection at site. All expenses to be borne by the party for 2/3
persons to be visited for pre-inspection
 Payment terms : Maximum 50% payment (of the total cost of the equipment)
against BG before commissioning
 Warranty : One year against BG
 Extended warranty for 2 more years to be quoted separately

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 ANNEXURE - II
File No.NML-3(1/MEF/SA)/2010-PS(34) dated 12/10/2010

Description of the item : “Induction Furnace – 50 kg Capacity”.

TERMS & CONDITIONS

1. Issue of Tender Documents : 13/10/2010 to 09/11/2010 (5.00 PM IST)
2. (a) Last Date for submission of quotations (Two Bid) : 10/11/2010 at (5.00 PM IST)
(b) Date of opening of Technical Bid : 11/11/2010 from 11.00 AM onwards in
old conference room, NML, Jamshedpur.

(c) Venue of tender opening (Technical bid only): Old conference Room, NML,
Jamshedpur – 831007 (Please note that “LATE” & DELAYED” tenders will not be
considered for opening in any case. Please ensure that tenders must reach the
office on or before Due Date for submission of tenders) as mentioned at 2 (a) above.

The sealed cover containing Technical + Price bid shall be submitted to Director,
National Metallurgical Laboratory, Jamshedpur- 831007 on or before 10/11/2010
(5.00PM IST). Both the technical and price bids (in separate sealed covers
indicating the Enquiry No. & Due Date on the covers) should be contained within
another envelop duly sealed which should also have Enquiry No. & Due Date
superscribed.

3. E. M. D. (Earnest Money Deposit)

Manufacturers/Agents must submit a Bid Security (EMD) as per format enclosed of Rs.75,000/-
(Rupees Seventy five thousand Only) along with their Bids in the form of Demand Draft /
Bankers Cheque/Bank Guarantee of any scheduled Indian Bank drawn in favour of Director,
National Metallurgical Laboratory, Jamshedpur. Bids without EMD will not be valid or
considered. EMD of unsuccessful bidders will be returned within one month of the award of the
contract. However, firms registered permanently with DGS&D and NSIC, Govt. Public
undertakings, Central Autonomous Bodies, who are exempted from payment of EMD will be
allowed exemption subject to production of documentary evidence to this effect. Such registration
includes the item they are offering which are manufactured by them and not for selling products
manufactured by other companies. EMD must be submitted in the sealed cover containing
Technical Bid (Part – I). Foreign vendors/Indian Agents may submit Demand Draft drawn in
favour of Director, NML; payable at Jamshedpur in foreign currency of equivalent amount USD
1688.00 or Euro 1217.00

4. The bid security shall be in Indian Rupees for offers received for supply within India and
denominated in the currency of the bid or in any freely convertible foreign exchange in the
case of offers received for supplies from foreign countries in equivalent Indian Rupees. The
bid security shall be in one of the following forms at the bidders’ option:

a) A bank guarantee issued by a Nationalized/ Scheduled bank/ Foreign Bank operating

in India in the form provided in the bidding documents and valid for 45 days beyond
the validity of the bid. In case a bidder desires to submit a BG issued from a foreign

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 bank, then the same should be confirmed by a Nationalised / Scheduled Indian bank,
or.

b) Fixed Deposit receipt pledged in favour of the Laboratory. / Institute.

c) A Banker’s Cheque or demand draft in favour of the NML, Jamshedpur issued by any
Nationalised /Scheduled Indian Bank.

5. Bids shall remain valid for minimum 180 days after the date of bid opening prescribed by
NML. A bid valid for a shorter period shall be rejected by the NML as non- responsive.

6. The Bid Security may be forfeited if the bidder withdraws or modifies or amends its tender
or impairs or derogates from its bid during the bid validity period or fails to sign the contract
or fails to furnish order acceptance or performance Security in time.

7. In case of bidder intimates at the time of tender opening in writing that the bid security is
kept inside the financial bid, in case of 2-bid system, then in such cases, the technical bid of
the vendors may be accepted provisionally till opening of the financial bids with which the
vendor has attached the bid security.

8 Firms submitting bids in a single envelope against the requirement of two-bid systems will
be considered for further evaluation at the risk & responsibility of the bidder. However, the
opened price bid should be sealed immediately by the TOC, without disclosing the price.

9. Bidders are not permitted to withdraw/alter or modify their bids after expiry of the deadline
for receipt of bids. No request from bidder for extension of date of receipt of tender and
opening shall normally be entertained.

10. Cost break up indicating the applicable prices for each component of the equipment like
price of the goods, costs for installation and commissioning, training should be mentioned in
the commercial bid.

11 Negotiations:

Negotiations if at all required shall be held with the lowest (L-1) evaluated responsive bidder
with the cogent reasons to be recorded.

12. The bidders should submit their tender document as under:

A) For goods manufactured in India.

a) The price of the goods quoted ex-works including all taxes already paid.
b) VAT and other taxes like excise duty etc., which will be payable on the goods
if the contract is awarded.
c) Charges for inland transportation, insurance and other local services required
for delivering the goods at the desired destination.
d) The installation, commissioning and training charges including incidental
services, if any.
B) For goods manufactured abroad.
a) The price of the goods, quoted on FCA (named place of delivery abroad)
or FOB (named port of shipment), as specified in the bidding document.
b) The charges for insurance and transportation of the goods to the port/place

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 of destination.
c) The installation, commissioning & Training charges including incidental
services, if any.

Thus the FOB/FCA price quoted should have all the charges built into it till
the consignment is booked at the departing port. In case of import NML will
arrange insurance from supplier’s warehouse to NML stores at Jamshedpur.

Note : The offers of the firms who quote on Ex-works basis and do not mention the
handling, documentation, packing, forwarding, transportation & insurance
charges etc. separately will not be considered a responsive bid and the
acceptance of such bid will vest entirely with the Director, NML,
Jamshedpur.

13. The Purchaser will reject a proposal for award if it determines that the Bidder recommended
for award has, directly or through an agent, engaged in corrupt fraudulent, collusive or
coercive practices in competing for the Contract in question.

14. Tenders received either by post or courier or by hand (excepting for tenders received against
Single Tender Enquiry) shall be dropped in the tender box, duly locked and sealed and would
be opened in presence of the Tender Opening Committee.

15. If a tender, received in a cover without any superscription about its contents, is opened by
any official receiving it, he shall himself mark on the cover the tender number and the date of
its receipt and the date of its opening and shall sign it and cause it to be delivered to the
Purchase Officer before the opening date. In such cases the Purchase Officer informs the
Tender Opening Committee verbally or in writing regarding the bid received.

16. A formal contract should be executed, with all necessary clauses which can be altered
suitably wherever felt necessary by the Laboratory/Institute to make it a self contained
contract. A simple one page contract can also be entered into by attaching copies of the
General Conditions of Contract (GCC) & Special Conditions of Contract (SCC) and details
of scope and specifications.

17. In all cases where a contract is to be signed on a stamp paper, a letter of intent (LOI) may be
issued to the firm in advance of the contract. The LOI should specifically mention, inter-
alia, the deadline for signing of the contract which should not normally be more than two
weeks from the date of issuance of LOI.

18. Any correction in the price quoted in the tender in words and/or figures shall be
encircled in red ink by the representative of finance and signed. The members of
the tender opening committee shall endorse this.
19. The comparison between the indigenous and the foreign offers shall be made on
FOR destination basis and CIF/CIP basis respectively. However, the CIF/CIP prices
quoted by any foreign bidder shall be loaded further as under:
a) Towards customs duty and other statutory levies –as per applicable rates.
b) Towards custom clearance, inland transportation etc. - 2% of the CIF/CIP
value.

Note: Where there is no mention of packing, forwarding, freight, insurance

charges taxes etc. such offers shall be rejected as incomplete.

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 20. Performance Security :
The successful vendor shall furnish an unconditional Performance Bank Guarantee favouring
Director, National Metallurgical Laboratory, Jamshedpur 831 007, Jharkhand, India valid till
60 days after the warranty period from a scheduled Indian Bank for 10% of F.O.B. value or
10% of order value within 21 days of placement of Purchase Order where full payment is to
be made on L/c or on delivery.

Alternatively, if PBG is not submitted within 21 days of placement of Purchase Order

the supplier can submit the order acknowledgement and L/c would be opened for 100% but
payment would be remitted only 90% and the remaining 10% payment would be remitted
only on submission of PBG by the supplier and after satisfactory installation &
commissioning.

21. The terms FOB, FCA, CIF, CIP etc shall be governed by the rules prescribed in the current
edition of the Incoterms published by the International Commerce, Paris.

22. The price quoted shall remain fixed during the contract period and shall not vary on any
account. All lots and items must be listed and priced separately in the Commercial Bid. If
a Price Schedule shows items listed but not priced, their prices shall be assumed to be
included in the prices of other items. Lots or items not listed in the Price Schedule shall be
assumed to be not included in the bid.

23. Amendment of Bidding Documents

a) At any time prior to the deadline for submitting of bids, NML may, for any reason,
whether at its own initiative or in response to a clarification requested by a
prospective bidder, modify the bidding documents by amendment.

b) All prospective bidders who have received the bidding documents will be notified
of the amendment in writing or by cable or by fax, or by e-mail and will be binding
of them. The same would also be hosted on the website of the NML and all
prospective bidders are expected to surf NML’s website before submitting their bids
to take cognizance of the amendments.

24. Language of the Bids :

The Language of the documentation & details in the Bids must be in ENGLISH.

25. The bidder shall provide an item-by-item commentary vis-à-vis NML’s technical
(Specifications demonstrating substantial responsiveness of the goods and services to these
specifications or a statement of deviation and exceptions to the provision of the technical
specifications.

26. All bids will be submitted in TWO-BID Format in separate sealed covers (Enquiry
Number & Due Date must be compulsorily mentioned in both envelopes and on the main
envelope).

(i) PART I : TECHNO-COMMERCIAL BID - giving Detailed Specifications,

International Standards (BIS / INTERNATIONAL), Catalogues, List of users & Technical
Details, Technical Compliance Sheet, etc. along with Operating Parameters, Pre-
Installation Requirements, payment terms, warranty.

Page 9 of 17
(ii) PART II : PRICE BID - giving full Prices in Foreign Currency or in Indian Rupees for
(a) Main Equipment.
(b) Essential Accessories & Spares.
(c) AMC charges for 3 Years after the expiry of warranty period.

27. All Vendors / Agents must submit full details and requirements for Installation &
Commissioning of the Equipment as per Technical Specifications submitted by them.

(i) Water Supply (Filtered, Flow rate).

(ii) Civil Works including Foundation, Flooring.
(iii) Mechanical and Fabrication work required.
(iv) Ambient Temperature Control (if required, as applicable).
(v) Cooling requirement (if any).
(vi) Electrical and Power requirements.
(vii) Space and Dimensions for Installation of the equipment as per the Quotation of the
Vendor.
(viii) Requirements of Special Gases, if any.

28. Warranty :

 The Supplier must warrant that the goods supplied under the Contract are new,
unused and the most recent or current and incorporate all recent improvements in
design, materials as per specifications in this Tender Document. All Vendors
(Manufacturers / Agents) must submit offers with 12months warranty after
installation & successful commissioning of the equipment at Site, i.e., (National
Metallurgical Laboratory, Jamshedpur, India which would be considered for
the tender evaluation purpose). The supplier should however, quote separately
for comprehensive/non comprehensive Annual Maintenance for three successive
years after the completion of one years comprehensive warranty. (This is to get an
estimate of the cost involved).
 Training :
(a) Two weeks on-site training at NML after installation and
commissioning. (b) subsequently after 3-4 months of use of the system
by NML scientists, OEM should depute their application specialist (not
Indian representative of the OEM) for additional on-site application
training for 5 days.

*The warranty offered should be unconditional and the seller should agree to replace
or repair the equipment at his cost. The spare parts for the warranty repair have to
be provided by the vendor.

29. In case a bidder not doing business within India, it shall furnish the certification to the
effect that the bidder is or will be represented by an agent in India equipped and able to
carry out the supply, maintenance, repair obligations etc. during the warranty and post-
warranty period or ensure a mechanism at place for carrying out the supply, maintenance,
repair obligations etc. during the warranty and post-warranty period.

30. Delivery Period :

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 a) In case of foreign suppliers firm delivery period (in weeks) after opening irrevocable
Letter of Credit (LC) must be given in Techno-commercial Bid. No part shipment is
permitted. Transhipment is permitted in case of International flights only.
b) In case of Indigenous suppliers the firm delivery period (in weeks) after issue of
Purchase Order must be given in the Technical Bid. Delivery is to be made at NML
Stores, Jamshedpur. Delivery must be on FREIGHT PAID BASIS for despatch by
Road. NML will issue the certificate/declaration in lieu of Road Permit to effect
Delivery.

31. Payment :

a) For Indian Suppliers and Manufacturers - 100% payment subject to submission of

10% PBG as per Clause 20 will be made direct to Indian suppliers by “Account Payee”
cheque against Invoice within 30 days of delivery, inspection, successful
commissioning & acceptance of equipment/services by NML Scientists.
b) All the vendors / bidders are required to furnish the following details for making
payment by
e-mode.

i) 11 digit core Banking Account Number

ii) Type of Account (Saving / Current)
iii) Name of Account Holder
iv) Name of Bank & Branch
v) IFSC Code Number
vi) MICR Number

32. For Foreign Suppliers :

100% by Irrevocable Foreign Letter of Credit subject to vendor submitting a unconditional

Performance Bank Guarantee (PBG) from a scheduled bank of 10% of FOB value within
21 days of placement of order and before opening Irrevocable Letter of Credit (LC). This
PBG must be valid for 60 days after the warranty period.

(a) Documents must be negotiated within 15 days of shipment through the Bank and
forwarded to NML’s Bank at Jamshedpur, India.
(b) Alternatively if PBG is not submitted within 21 days then refer to Clause 20 of
tender document.
(c) In case any Agency Commission is payable to Indian Agent by his foreign
principal/manufacturer, same may be clearly indicated in the offer. Agency
Commission in Indian Rupees will be paid to duly authorised Indian Agents within
3 months of satisfactory Installation & Commissioning of the Equipment at NML
(subject to production of DGS&D enlistment certificate and in case of restricted
item).

33. Validity of Prices :

The quoted prices must be valid for a minimum period of 6 months from the date of
opening of the Bid failing which offers may be summarily rejected by NML.

34. BIS / Internal Specifications :

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 Applicable BIS / INTERNATIONAL Specification must be mentioned in the Technical
Bid. Valid Certificate of Calibration traceable to International Standards must be indicated
in the Technical Bid, if applicable.

35. Inspection & Testing :

All Inspection & Tests will be conducted by NML Scientists in the presence of
Manufacturer’s / Agents representative at NML, Jamshedpur, India.

36. Training :

The supplier should provide free training for two Scientists at National Metallurgical
Laboratory, Jamshedpur after installations of the said equipment at NML. This training
shall be to the satisfaction of NML Scientists.
37. Installation & Commissioning :
Installation & Commissioning will be the sole responsibility of the Supplier / Indian Agent.
Installation & Commissioning with all infrastructural works have to be done by the
supplier.

38. Penalty Clauses :

(a) Penalty (Liquidated Damages) @ 0.5% of basic price per week will be deducted
from Manufacturer’s/ Indian Agent’s Bill for delay in Delivery & Despatch beyond
Delivery dates (as extended by NML in Purchase Order and Letter of Credit
Schedule). Maximum deduction for failing to deliver within NML,s approved
delivery period & extensions will be limited to 5% of Ex-works Value (equivalent
in Indian Rupees) for non-fulfilment of delivery deadlines and any other contractual
obligations as per Purchase Order. Once the maximum is reached, NML may
consider termination of the Contract.
(b) Delay in Installation & Commissioning beyond contractual deadline will result in
forfeiture of Performance Bank Guarantee.
39. Assignment :
The supplier shall not assign in whole or in part their obligation to perform under the
contract, except with the Purchasers prior written consent. Purchase of equipment shall
be made directly from manufacturers or their authorised agents in India. The authorized
agents should not sublet the contract to sub-agents.
40. Basis of Evaluation :

The factors that would be taken into consideration would include compliance to original
tendered technical specifications, ability to furnish technical brochures in support of
quoted technical specifications, ability to technically demonstrate the system, prior sale
of such system in any CSIR Lab./Government Institutions, payment schedule, final
landing cost of technically responsive lowest bid, delivery time, warranty period,
compatibility of service and spares. All the above factors would be taken into
consideration while awarding the contract.

41. Patent Rights & IPR Laws :

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 The supplier shall indemnify the purchaser against all third party claims of infringement
of Patent, Trademark or Industrial Design Rights arising from the use of Goods or any
part thereof in the Purchaser’s country. The vendor should be sure about his claim on the
ownership of technology and total compensation in the event of a claim should be paid to
the buyer in case of patent infringement.

42. Right to information Act 2005 :

The tenderer may indicate if any information in his tender includes information of
commercial confidence, trade secrets or intellectual property, the disclosure of which
would harm the competitive position of your company.

43. Applicable Law :

The contract shall be interpreted in accordance with Laws applicable in India and any
dispute would be resolved by the court in Jamshedpur, Jharkhand India.
44. Compliance Statement :

(a) All Manufacturers / Agents must submit the Compliance Statement (Format as
given below) alongwith the technical bid.

FORMAT FOR COMPLIANCE STATEMENT

(1) (2) (3) (4)

NML’s Enquiry Specification of Compliance to NML’s Details of Deviation, if
Specifications Equipment (offered by Technical any, as per NML’s
Manufacturer) Specifications Specifications
YES or NO

Date : ………………… Signature of Manufacturer /

Agent

(b) Please give the following details, if you have supplied similar or identical
equipment in India, particularly to any other CSIR Laboratory / Institutes in the
last three years .

i) Name of the equipment with brief specifications, model etc.,

ii) Name & Contact Address of the user.
iii) Purchase Order of CSIR Lab / Institutes with P.O. No. and Date if supplied to
CSIR.
iv) Price finally paid.
v) Any other relevant information.

45. Taxes, Duties and Levies :

a) The suppliers shall be solely responsible for all Taxes, Duties, Levies including
Octroi, Local Levies, Sales Tax, Excise Duties incurred as per extant laws in India.

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 No Concessional Sales Tax Form ‘C’ or ‘D’ will be issued by this Laboratory. It
should be clearly mentioned in the quote whether the prices include taxes & duties.
In case the price is inclusive of taxes and a variation of tax element is sought, then
the quote should mention the base level of taxes built into the price.

b) Customs & Excise Duty Exemption :

This Laboratory is registered with Department of Science & Industrial Research,
Government of India and thus is exempted from Excise Duty vide GOI notification
No.10/97 Central Excise dated 1st March 1997 and is eligible for Concessional
Customs Duty as per GOI Notification No.51/96 Customs dt.23/07/1996 –
amended from time to time.

46. Director, NML reserves the right to seek past purchase orders of similar equipment
supplied in order to assess the price of the equipment earlier supplied to any of the
CSIR laboratory/other government R&D laboratory/educational institutions. In
such cases the copies of past purchase orders provided would be kept completely
confidential and would be used to facilitate the purchase process.

47. In order to assess the financial solvency of a firm Director, NML may seek a report
from the bankers of the technically evaluated lowest quoting firm in order to assess
if the firm is financially capable of executing the purchase order/work successfully.

48. Termination for Default :

NML may, without prejudice to any other remedy for breach of contract, by written
notice of default sent to the Supplier, terminate the Contract in whole or part.

a) If the Supplier fails to deliver any or all of the Goods within the period(s)
specified in the contract, or within any extension thereof granted by the
NML.
b) If the Supplier fails to perform any other obligation(s) under the Contract.

49. Arbitration :

All disputes will be referred to Director General, Council of Scientific & Industrial
Research (CSIR), New Delhi for arbitration. The decision of Director General, CSIR will
be final and binding on both supplier and customer (NML).

a) NML and the supplier shall make every effort to resolve amicably by direct
informal negotiation any disagreement or dispute arising between them
under or in connection with the Contract.

b) If, after twenty-one (21) days, the parties have failed to resolve their dispute
or difference by such mutual consultation, then NML or the Supplier may
give notice to the other party of its intention to commence arbitration, as
hereinafter provided, as to the matter in dispute, and no arbitration in
respect of this matter may be commenced unless such notice is given.
c) In case of Dispute or difference arising between NML and a domestic
supplier relating to any mater arising out of or connected with this
agreement, such disputes or difference shall be settled in accordance with
the Indian Arbitration & Conciliation Act, 1996, the rules there under and
any statutory modifications or re-enactments thereof shall apply to the
Page 14 of 17
 arbitration proceedings, The dispute shall be referred to the Director
General, Council of Scientific & Industrial Research and if he is unable or
unwilling to act, to the sole arbitration of some other person appointed by
him willing to act as such Arbitrator. The award of the arbitrator so
appointed shall be final, conclusive and binding on all parties to this order.

d) The venue of the arbitration shall be the place from where the purchase
order or contract is issued.
e) Applicable Law: The contract shall be interpreted in accordance with the
laws of the Union of India and all disputes shall be resolved within
Jamshedpur, Jharkhand jurisdiction only.

50. The following are some of the points, for which a tender may be declared as
unresponsive.

i) The Bid is unsigned.

ii) The Bidder has quoted for goods manufactured by different firm without the
required authority letter from the proposed manufacturer.
iii) Bidder has not agreed to give the required performance security.
iv) The goods quoted are sub-standard, not meeting the required specifications.
v) Against the schedule of Requirement (incorporated in the tender enquiry),
the tenderer has not quoted for the entire requirement as specified in that
schedule.
vi) The tenderer has not agreed to some essential condition(s) incorporated in
the tender enquiry.

51. Notwithstanding the above, Director, National Metallurgical Laboratory,

Jamshedpur, Jharkhand, India reserves the right to “accept / reject” any Bid at any
time received against this Open Tender without assigning any reason.

Stores & Purchase Officer

National Metallurgical Laboratory
Jamshedpur, 831 007 (Jharkhand)

Fax : 0657 – 2345131 / 2345213 Tel : 0657 – 2345129 Email : spo@nmlindia.org

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 Specimen
BID SECURITY FORM
Whereas ........................... 1 (hereinafter called “the tenderer”) has submitted their offer
dated ................... for the supply
of ............................................................................................ (hereinafter called “the
tender”).
Against the NML’s tender enquiry No………………………………………………… KNOW
ALL MEN by these presents that WE ……………………………………………………… of
…………………………………………… having our registered office at
…………………………..are bound unto ………………………………………. Hereinafter
called the NML, Jamshedpur.
In the sum of
………………………………………………………………………………………………………
for which payment will and truly to be made to the said, NML the Bank binds itself, its
successors and assigns by these presents. Sealed with the Common Seal of the said
Bank this … day of …..20…….

THE CONDITIONS OF THIS OBLIGATION ARE:

(1) If the tenderer withdraws or amends, impairs or derogates from the Tender in any
respect within the period of validity of this tender.
(2) If the tenderer having been notified of the acceptance of his tender by the NML
during the period of its validity:-
(3) If the tenderer fails to furnish the Performance Security for the due Performance of
the contract.
(4) Fails or refuses to accept/execute the contract.

We undertake to pay the Purchaser up to the above amount upon receipt of its first
written demand, without the Purchaser having to substantiate its demand, provided that
in its demand the Purchaser will note that the amount claimed by it is due to it, owing to
the occurrence of one or both of the two conditions, specifying the occurred condition or
conditions.
This guarantee shall remain in force up to and including forty five (45) days after the
period of the tender validity, and any demand in respect thereof should reach the Bank
not later than the above date.

--------------------------------------------------------------
(Signature of the authorized officer of the
Bank)

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 Name and designation of the officer
Seal, Name & address of the bank and address of the Branch

Page 17 of 17