C311333 Amal HRSG-1 Project

Petroleum Development Oman LLC

Contract Number C311333
Amal Heat Recovery Steam Generator (HRSG)-1 Project
T2, Instructions To Tenderers

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

Contents
1.0

DEFINITIONS ...................................................................................................................3

2.0

GENERAL TENDERING CONDITIONS ...............................................................................4

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
2.25
3.0
3.1
3.2
4.0
4.1
4.2
4.3
4.4
4.5

APPLICABILITY ......................................................................................................................... 4
TENDERERS COMPLIANCE............................................................................................................ 4
COST OF TENDERING ................................................................................................................. 4
CONFIRMATION OF RECEIPT AND SUFFICIENCY OF TENDER .................................................................. 4
COMMUNICATION WITH COMPANY ................................................................................................. 4
CONFIDENTIALITY AGREEMENT .................................................................................................... 4
DISCREPANCIES........................................................................................................................ 5
CLARIFICATION REQUESTS .......................................................................................................... 5
CLARIFICATIONS AND ADDENDA ................................................................................................... 5
POST TENDER CLARIFICATIONS................................................................................................. 5
TENDERERS ORGANISATION .................................................................................................... 5
TENDERER REGISTRATION ....................................................................................................... 5
BASE TENDERS ..................................................................................................................... 6
ALTERNATIVE TENDERS .......................................................................................................... 6
VALIDITY ............................................................................................................................ 6
ACCEPTANCE AND EVALUATION OF TENDERS ................................................................................. 6
ARITHMETICAL ERRORS ........................................................................................................... 6
FAX OF AWARD AND SIGNING OF THE CONTRACT........................................................................... 6
PROVISION OF PERFORMANCE BOND .......................................................................................... 6
PUBLICATION OF TENDERS AND AWARDS ..................................................................................... 6
WITHHOLDING TAX DEDUCTIONS .............................................................................................. 7
NOTICE OF REGRET OR DECLINE SUBMISSION OF TENDER................................................................ 8
COMPLETION AND MODIFICATION OF DOCUMENTS ......................................................................... 8
CUSTOMS DUTIES.................................................................................................................. 8
DESIGN VERIFICATION ........................................................................................................... 8
SUBMISSION OF TENDERS GENERAL REQUIREMENTS ................................................8
GENERAL ................................................................................................................................ 8
HARD COPY (PAPER) AND SOFT COPY (ELECTRONIC) TENDERS .............................................................. 8
APPENDIX 1 CONFIDENTIALITY AGREEMENT ..............................................................9
DEFINITIONS ........................................................................................................................... 9
CONFIDENTIALITY ..................................................................................................................... 9
COPYRIGHT ............................................................................................................................. 9
RETURN OF CONFIDENTIAL RECORD .............................................................................................. 9
THIRD PARTIES ........................................................................................................................ 9

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

1.0
1.1.1
1.1.2

1.1.3

1.1.4

1.1.5

1.1.6
1.1.7

1.1.8

1.1.9

1.1.10
1.1.11
1.1.12

1.1.13
1.1.14
1.1.15
1.1.16
1.1.17

1.1.18
1.1.19
1.1.20
1.1.21

1.1.22

Definitions
The following definitions shall apply to the Tender Documents, Clarifications and the Tender.
Addenda
Shall mean revisions by Company of the Tender Documents.
Agency Certificate
Shall mean the certificate issued by the Directorate of Commercial Agencies at the Ministry of
Commerce and Industry establishing that the commercial agency is duly registered.
Alternative Tender
Shall mean a Tender deviating from the Base Tender, including Tenders that include exceptions
or qualifications to the Tender Documents.
Base Tender
Shall mean a Tender strictly in accordance with the Tender Documents, without any exceptions
or qualifications.
Clarification
Shall mean all correspondence from Company in relation to the Tender Documents issued after
the Tender issue date, with the exception of Addenda.
Clarification Requests
Shall mean all requests by Tenderers for Clarifications and Addenda.
Clarification Request Closing date
Shall mean the latest date/time that Tenderers may submit Clarification Requests. This date
shall be as stated in Section T1 or subsequent Clarification.
Commercial Registration Certificate
Shall mean the certificate issued by the Secretariat General of Commercial Register at the
Ministry of commerce and Industry, establishing that the company doing business in the
Sultanate of Oman is duly registered.
Commercial Tender
Shall mean Tenderers submission of commercial information including a completed Schedule of
Rates in line with the requirements detailed in Section T3.
Company Supply Chain Analyst
Shall mean the person mentioned in Section T1
Contractor
Shall mean successful Tenderer.
Discrepancies
Shall mean any errors, discrepancy, contradiction or ambiguity within or between the Tender
Documents.
Enquiry
Shall mean Invitation to Tender.
Invitation to Tender
Shall mean any request by Company for a Tenderer to submit a Tender.
JV or Joint Venture
Shall mean any form of unincorporated partnership.
Offer
Shall mean Tender
Post Tender Clarifications
Shall mean requests by Company after the Tender Closing Date for additional information
related to a Tender.
Quotation
Shall mean Tender.
Request for Quotation (RFQ)
Shall mean Intivation to Tender.
Scope of Work
Shall mean the Work, Services or Materials which form the subject of the Invitation to Tender.
Technical Tender
Shall mean Tenderers submission of technical information in line with the requirements detailed
in Section T3.
Tender
Shall mean the formal offer by Tenderer for the Scope of Work in the form specified in the
Tender Documents.

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

1.1.23
1.1.24

1.1.25
1.1.26
1.1.27

Tenderer
Shall mean the party invited by Company to submit a Tender as stated in Section T1.
Tender Closing Date
Shall mean the latest date and time that Tenders may be delivered to Company. This date shall
be as stated in Section T1 or subsequent Clarification.
Tender Documents
Shall mean those documents outlined in Section T1, Article 1 including any Addenda thereto.
Tender Period
Shall mean the period from issue of the Invitation to Tender until the Tender Closing Date.
Tender Process
Shall mean the activities performed by Company and Tenderer in relation to the Invitation to
Tender from the receipt of the Invitation to Tender by Tenderer up to award of the Contract.

2.0

General Tendering Conditions

2.1
2.1.1

Applicability
The requirements of these general tendering conditions shall apply to the Tender Process
irrespective of the method of Tender submission or evaluation.

2.2
2.2.1

Tenderers Compliance
Tenderer shall comply with the requirements stated in the Tender Documents. Failure to do so
may result in the Tender being disqualified.

2.2.2

Tenderer shall not be involved in, or attempt to be involved in, any price fixing, market sharing
or collusive tendering or any similar activities, with its competitors or any other parties with the
deliberate purpose to influence the award of the Contract or to attempt to eliminate or
substantially reduce competition between actual or potential Tenderers, regardless of whether
or not the competitors or other parties are invited to this Tender. Breach of this Article may
lead to the Tender being disqualified, Tenderer being disqualified from doing business with
Company and the filing of a formal complaint with criminal prosecution.

2.3
2.3.1

Cost of Tendering
Regardless of whether a Tender or an Alternative Tender is successful or unsuccessful or the
Tender Process is terminated, all costs, charges and expenses incurred by Tenderer in the
preparation and submission of the Tender or Alternative Tender, including Site visits, shall be
borne by Tenderer.

2.4
2.4.1

Confirmation of receipt and sufficiency of Tender

Tenderer shall confirm receipt of Clarifications or Addenda by return e-mail or fax.

2.4.2

Tenderer is deemed to have: -

Carefully studied the Tender Documents to ascertain the full meaning and extent of all
related obligations, responsibilities and conditions.

Inspected and examined the Site and to have satisfied itself as to the correctness and
sufficiency of the Tender Documents and the information contained therein, the form and
nature of the Site, the full extent and character of the Scope of Work, the means of access
to the Site and to have taken into account any physical or natural impediments, anticipated
or otherwise, which may exist at the Site.

Obtained all necessary information as to risks, contingencies and other circumstances that
may influence or affect the Tender.

Access to, and knowledge of, all applicable International and Sultanate of Oman codes and
standards, statutory requirements, legislation and the like, prior to submission of the
Tender.

2.5
2.5.1

Communication with Company

During the Tender Period, Tenderer shall not communicate with any Company employee
regarding the Tender unless expressly so directed by the Company Supply Chain Analyst or
where such communication shall constitute a Clarification Request.

2.6
2.6.1

Confidentiality Agreement
By collecting or receiving the Tender Documents the Tenderer acknowledges acceptance of the
terms of the Confidentiality Agreement as included in Appendix 1 herein.

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

2.7
2.7.1

Discrepancies
Tenderer shall notify Company of potential Discrepancies by means of a Clarification Request.

2.8
2.8.1

Clarification Requests
Tenderer is advised to raise Clarification Requests on all matters that may result in
Clarifications, Addenda and Alternative Tenders.

2.8.2

Tenderers shall submit Clarification Requests in writing to the Company Supply Chain Analyst
before the Clarification Request Closing Date.

2.8.3

Company is under no obligation to answer Clarification Requests received after the Clarification
Request Closing Date.

2.8.4

Company reserves the right to disqualify a Tender from a Tenderer that submits Clarification
Requests after the Clarification Closing Date.

2.8.5

All Clarification Requests will be answered by Company either by an Addendum or by a

Clarification.

2.8.6

Company shall strive to answer all Clarification Requests within seven (7) days from the
Clarification Closing Date.

2.9
2.9.1

Clarifications and Addenda

Company reserves the right to amend or revise the Tender Documents as and when it considers
appropriate in the form of an Addendum. Any such Addenda will form part of the Tender
Documents.

2.9.2

Addenda shall be issued together with the revised versions of the relevant Tender Documents.

2.9.3

Clarifications and Addenda shall be consecutively numbered.

2.9.4

Where Tenderer considers that an issued Clarification constitutes an Addendum, Tenderer shall
immediately notify Company in writing, stating reasons, for the particular Clarification to be
issued as an Addendum.

2.9.5

Qualifications to Sections other than C2 or C3 shall be clarified by Clarification Requests before

Technical Tender submission, unless Tenderer deems they are confidential or part of the
Altnernative Tender.

2.10
2.10.1

Post Tender Clarifications

Post Tender Clarifications do not constitute intent to award, or award of the Contract.

2.10.2

In the event that the Tender is accepted, Post Tender Clarifications and their related answers
where accepted by Company, will form part of the Contract.

2.11
2.11.1

Tenderers Organisation
Only the legal entity nominated by Tenderer in the Tenderer Data Sheet included as Appendix 1
to Section T1 is eligible to Tender.

2.11.2

Where Tenderers commercial status, shareholding, name, structure, or organisation alters in

any way during the Tender Period, Tenderer shall immediately notify Company of such changes
giving full details. Company, at its sole discretion, shall have the right to disqualify the Tender
after any of the changes mentioned in this Article have occurred.

2.11.3

All Tenders submitted by a partnership or Joint Venture (JV) shall state the names of the
partners in the partnership and the parties in the JV with their respective shares. Where
requested, Tenderer shall provide a copy of the JV agreement. Only the nominated authorised
representative of the partnership or JV shall sign Tenders. All parties to a JV shall be, jointly
and severally, liable for obligations that may arise under the Contract.

2.12
2.12.1

Tenderer Registration
A foreign company wishing to engage in commercial activity in the Sultanate of Oman is
required to conform to the registration requirements under Omani Law. A successful Tenderer
will be required to submit a copy of the Agency Certificate or the Commercial Registration
Certificate, as applicable, issued by the Ministry of Commerce and Industry.

2.12.2

The successful Tenderer or partners in a JV or partnership shall be registered with the

Commercial Register of the Ministry of Commerce and Industry in Oman.

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

2.13
2.13.1

Base Tenders
Tenderer shall submit a Base Tender.

2.13.2

Company reserves the right to disqualify a Tenderer that does not submit a Base Tender.

2.13.3

Company shall consider that no Base Tender has been submitted if only one Tender is
submitted and that Tender contains exceptions or qualifications to the Tender Documents.

2.14
2.14.1

Alternative Tenders
The Tenderer that submitted a Base Tender is welcomed to submit Alternative Tenders where
Tenderer identifies benefits for the Company (e.g. costs, quality, local content or safety).

2.14.2

Exceptions or qualifications to Sections C2 and C3 can only be submitted as part of

an Alternative Technical Tender.

2.14.3

Except for those Alternative Tenders requested by Company and provided for in the Schedule of
Rates, Alternative Tenders proposed by Tenderer shall be submitted in a separate identifiable
attachment to the Base Tender.

2.14.4

The Alternative Tender(s) shall fully detail all deviations from the Base Tender and list all
effects on the Tender Documents including but not limited to the Rates, the execution of the
Scope of Work and the Commencement or Termination Date. Only those deviations from the
Base Tender as detailed by Tenderer shall be deemed part of an Alternative Tender. All other
contract requirements shall remain unaltered.

2.14.5

Company shall have the sole right to accept or reject any offered Alternative Tender.

2.14.6

Company shall not issue information on offered Alternative Tenders to other Tenderers during
the Tender Period.

2.15
2.15.1

Validity
The Tender shall be valid for acceptance by Company for a period of one hundred and
eighty (180) days from the Tender Closing Date.

2.16
2.16.1

Acceptance and evaluation of Tenders

Tenders received after the Tender Closing Date shall not be considered.

2.16.2

Company does not undertake to accept the lowest or any Tender.

2.16.3

If deemed necessary, and at its sole discretion, Company reserves the right to condition or
otherwise adjust the Tendered Rates for the purposes of internal comparison and evaluation.

2.16.4

Company may invite Tenderer to clarify the Tender. Such invitation shall in no way be
construed as a commitment on the part of Company to award a Contract.

2.17
2.17.1

Arithmetical errors
Arithmetical errors are for the risk of Tenderer and shall be corrected as Company sees fit.

2.17.2

Company has the right to either accept the error or to invite Tenderer to commercially clarify
the Tenders containing the arithmetical errors.

2.18
2.18.1

Fax of Award and Signing of the Contract

Company shall advise the successful Tenderer of the award of the Contract by a fax of award,
issue of a SAP Purchase Order or otherwise. This confirmation shall be sent to the party named
in Section T1 unless otherwise agreed during the Tender Period.

2.18.2

As soon as possible after the confirmation included in Article 2.18.1 above, the Contract or
Purchase Order shall be executed by Company and Tenderer.

2.18.3

Any delay in signing the Contract or Purchase Order shall not relieve the Tenderer from its
obligation to deliver the Materials or commence or complete the Scope of Work in line with the
Contract requirements.

2.19
2.19.1

Provision of Performance Bond

Notwithstanding that there may be no requirement for a performance bond in Section C1,
Company reserves the right to require Tenderer to provide one, for a stipulated value in a
stipulated format, as a condition of award. In this case Company shall reimburse Tenderer for
the cost (bank charges only, not the sum of the bond) of such performance bond.

2.20

Publication of Tenders and Awards

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

2.20.1

Company reserves the right, at its sole discretion, to publicly announce and or publish the
overall Tender evaluation results, ranking and resulting Contract award. This publication will not
include disclosure of unit rates or any other detailed pricing information.

2.21
2.21.1

Withholding Tax Deductions

Tenderer shall be responsible for assessing and taking into account in its Tender, Tenderers
potential tax liability, including withholding tax liabilities, based on current law and Tenderers
plans for executing the Contract.

2.21.2

Possible withholding tax deductions shall be made in line with Companys interpretation of the
requirements.

2.21.3

The information below on withholding tax is included for guidance only and Company does not
accept responsibility for the accuracy of such information. It is Tenderers responsibility to
obtain tax advice on its withholding tax liabilities.
a) If Tenderer registers a Permanent Establishment (PE) in Oman, the Contract is with that PE
(as stated in Section C1) and payments are made to that same PE, then withholding tax will
generally not apply to the expenditure under the Contract.
b) If the Contract is with Contractors registered office located outside Oman, and Contractor
provides any of the following works or services (supply of materials only is not subject to
withholding tax), then charges related to those works or services (and only those) shall be
subject to withholding tax according to Royal Decree 87/96:
1. Management
a. Including (withholding tax applies to charges related to)
i. general management or management assistance activities
b. Excluding (withholding tax does not apply to charges related to)
i. Drafting documentation or procedures
ii. Training (courses)
2. Research and Development
a. Including
i. Product development and research studies
b. Excluding
i. Testing, inspection, field trials and interpretation and analysis studies
3. Royalty Payments (rental, know how transfer)
a. Including
i. Licence payments (e.g. for software, film, patents, designs, etc.)
ii. Engineering services or consultancy or other payment for information.
iii. Payments relating to the use of equipment (e.g. lease, rent, etc.)
b. Excluding
i. Provision of work or services utilising Equipment
ii. Logistics or transportation
iii. Construction services (including upgrading or refurbishing, commissioning and
installation and including related services such as operation manuals)
iv. Maintenance agreements (e.g. software support)
c) Charges related to work or services not listed above shall generally not be subject to
withholding tax.
d) Foreign companies, resident in France as confirmed by the French tax authorities are
exempted from withholding tax.
e) The withholding tax shall be ten percent (10%) of the fees (gross income) charged for the
relevant service and shall be withheld by Company and paid to the Oman government in
accordance with the provisions specified in the Ministerial Decision 70/97. If a double tax
treaty exists with the county in which tenderer is resident (as confirmed by the relevant
tax authorities), tenderer can claim compensation in that country. See also
http://www.mof.gov.om.
f)

Tenderer shall note that for some Contracts, withholding tax applies to part of the works or
services provided. In such cases Contractor shall:
a. Clearly separately specify which services are subject to withholding tax and which ones
are not, and
b. separately invoice charges for works or services which are subject to withholding tax.

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

2.21.4

If a) above applies, there is no need for Tenderer to substantiate Tenderers withholding tax
status in the Tender. If a) above does not apply, i.e. Tenderer intends for the Contract not to
be awarded to a PE in Oman, Tenderer shall substantiate Tenderers withholding tax status,
together with written confirmation from the Ministry of Finance, Secretariat General for
Taxation (+968 24811814, extension 4502).

2.22
2.22.1

Notice of Regret or Decline submission of Tender

Where Tenderer does not intend to submit a Tender, Tenderer shall submit a notice of regret
identifying reasons for Tenderers withdrawal on or before the Commercial Tender Closing Date.
The notice of regret shall be submitted to both the Company Supply Chain Analyst and the
Secretary of the Tender Board (FTB) at the Bait Saih Al Maleh Building, third floor, room T006
at Company's Mina Al Fahal complex.

2.22.2

In the event Tenderer fails to submit a notice of regret and subsequently does not submit a
Commercial Tender then Company reserves the right to disqualify Tenderer for future tenders.

2.23
2.23.1

Completion and Modification of Documents

Except as otherwise expressly provided for in the Tender Documents, Tenderer shall insert the
data requested in the Tender Documents in the designated location. Under no circumstances
shall the Tender Documents be otherwise altered or other data inserted.

2.24
2.24.1

Customs Duties
Company is not in the legal position to grant (temporary) customs duty exemption. Tenderer is
referred to Section C3 for the obligations relating to duties and taxes.

2.25
2.25.1

Design Verification
Company has carried out front end design to prove the viability of the project. The data and
drawings generated during this design have been included for information in Section C6. It is
intended that the design work is used as the basis for detailed engineering and subsequent
realisation of the Work.

2.25.2

In the event that it is Tenderer's opinion that the front end design as offered is not
constructible, Tenderer shall immediately submit a Clarification Request, outlining areas of
concern. Any Clarification Requests to Equipment line up or Equipment data, shall be advised
immediately to Company during the Tender Period detailing the reason.

3.0

Submission of Tenders General Requirements

3.1
3.1.1

General
Details on the submission requirements are included in Section T3. Below are general
requirements only.

3.2
3.2.1

Hard copy (paper) and soft copy (electronic) Tenders

All parts of the Tender submitted in hardcopy or paper form shall be signed by a person
authorised to represent and contractually bind Tenderer, shall carry Tenderers name and shall
bear the stamp of Tenderer.

3.2.2

In the event of conflict or ambiguity between a Tender submitted in electronic format and a
Tender submitted in hard copy, the hard copy shall take precedence.

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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C311333 Amal HRSG-1 Project

4.0

Appendix 1 Confidentiality Agreement

4.1
4.1.1

Definitions
Confidential Information
shall mean all knowledge, data or information acquired by Tenderer from, or disclosed to
Tenderer by Company, or on behalf of Company, in connection with the Tender Documents,
Clarifications and the Tender Process in writing, drawings, magnetic tapes, computer programs
or in any other way, as well as all knowledge, data or information derived there from, to the
extent that such knowledge, data or information at the time of such acquisition or disclosure is
not either already in the unrestricted possession of Tenderer or part of public knowledge or
literature.

4.1.2

Confidential Record
Shall mean all Tender Documents, Clarifications and any other material containing Confidential
Information.

4.1.3

Third Party
Shall mean any party other than Company or Tenderer.

4.2
4.2.1

Confidentiality
Tenderer shall preserve and cause its employees to preserve the confidentiality of any
Confidential Information.

4.2.2

Tender shall not for any purpose other than the preparation and submission of a Tender

disclose to any Third Party or enable any Third Party to note the fact that Tenderer has
been invited to submit a Tender and/or, if applicable, the fact that the Contract is awarded
to Tenderer;

reproduce, copy or use, or disclose to, place at the disposal of or use on behalf of any Third
Party or enable any Third Party to read, copy or use, any Confidential Information;
except with the prior written consent of Company.
4.2.3

The undertakings above shall continue insofar and for so long as the Confidential Information or
Confidential Record in question has not:
a) become part of the public knowledge of literature otherwise than through any act or default
on the part of Tenderer; or
b) been disclosed to Tenderer under an obligation to maintain secrecy by a Third Party (other
than one disclosing on behalf of Company) who could lawfully do so and who did not derive
such Confidential Information or Confidential Record from Company.

4.3
4.3.1

Copyright
The copyright in any Confidential Record shall, in the absence of any express provision to the
contrary thereon, be vested in Company. Copyright in any record containing geological or
geophysical data acquired or generated by Tenderer in connection with the Contract shall be
vested in Company.

4.4
4.4.1

Return of Confidential Record

If Tenderer declines to submit a Tender or is notified that its Tender is unsuccessful, upon
written notification thereof by Company, Tenderer shall destroy electronic copies and return all
hard copy Tender Documents including Addenda and Clarifications to Company.

4.5
4.5.1

Third Parties
Tenderer shall ensure that if under the terms of this confidentiality agreement any of the
Confidential Information comes to the knowledge and/or in the possession of any Third Party,
Tenderer shall require from such Third Party that it shall abide by stipulations equivalent to
those contained in this confidentiality agreement.

Section T2, Instructions To Tenderers, Rev 2.3 Feb 2010

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