Sub: Bulk POL Transportation Contract for Depot / Terminal for the Period from To

NOTE TO EXECUTIVE COMMITTEE (MARKETING)

Meeting No.

Date

Item No.

Sub: Bulk POL Transportation Contract for ______Depot / Terminal for the period from ______to ______.

Value of the proposal for 3 years: Rs ______Crores

1.0 Proposal :

This proposal seeks management approval for Bulk POL Transportation Contracts ex. ______Depot / Terminal for two years period from ______to ______with an option of extending the contract at same rates, terms and conditions for another period of one year at the sole discretion of the Corporation.

2.0 Existing Contract details :

· Validity of the contract : The existing POL transport contract for ______Depot / Terminal was valid up to ______. Approval was accorded vide CFD / ECM / MCC / ZCC meeting no. ______held on ______. Details of the approval are as given below.

Descript-ion / Ranking / FDZ (Rs./KL) / BFDZ (Ps/KL/KM) / Adj states (Ps/KL/KM) / Other states (Ps/KL/KM) / No. of parties / No. of T/Ts.
White Oils / L1
L2
Black Oils / L1
L2

Note: Table has to be extended to cover all categories of products as well as approval under various rankings.

· Adhoc Contract : Proposal for entering into adhoc contracts till finalization of new contracts was deliberated in ECM / ZCC meeting no. ______held on ______. During the deliberations, ECM / ZCC directed that the new contracts shall commence with implementation of all the innovative features incorporated in the tender. Considering the current status of the tender, the contracts are expected to be finalized with in ______months of extended period. Additional one month was given for implementation of the innovative features.

Accordingly, ECM / ZCC accorded approval for entering into adhoc contracts for a period of ______Months from ______.

3.0 Fresh Tender :

In order to finalize new transportation contracts, fresh tender was invited through HPCL public tender no. ______on dt. ______. The new finalized contracts will be valid for two years from ______to ______with the option to extend for one more year at same rates, terms and conditions at the sole discretion of the Corporation.

New clauses have been incorporated in the tender for improved safety and operating practices.

· Branding of tank trucks

· Third party Inspection of Tank trucks

· Modification to top dome cover / bottom valve fitting

· Induction of higher capacity tank trucks. Tenderers can offer higher capacity tank by providing affidavit that the tank truck will be in physical possession at the time of contract execution

· Minimum age of tank truck at the time of induction should not be more than 12 years

· Minimum 5 nos. of tank trucks shall be offered by transporters, with ownership of at least two tank trucks

· PCB payment – 25 % through Fleet loyalty card

· Anti Lock Braking System

· Modifications required to be done in the tank truck for installing VMS

· Installing of VMS on all tank trucks would be undertaken by HPC and actual cost would be recovered from the transporters

The modalities for implementation of new innovative features of the tender would be as under ;

i. New fittings, ABS, Branding

· All the TTs which are getting inducted for the first time shall be taken only after compliance with the new fittings.

· All the TTs which are currently plying at the locations and are also successful in the new tender would be removed in a phased manner for implementation of the fittings, so that, before signing of the new contract 100% compliance is confirmed.

· VMS would be procured and installed by HPCL. Actual cost of the equipment and installation charges would be recovered from the transporter.

ii. Five TTs per transporter

Tender conditions of offering minimum 5 nos. of tank trucks by sole transporters was verified during technical evaluation. All participating tenderers have complied with the tender requirement / ______no. of tenders not complying with the tender requirement were rejected.

iii. Payment of 25% PCB payment through loyalty card.

Following process is proposed for implementation of the tender condition:

a. All successful tenderers (transporters and dealer-cum-transporters) would be enrolled as fleet card members and DT card would be provided.

b. All the supply locations would be provided with swipe machines.

c. Thru ERP, 75% payment will be released to dealer by cheque / NEFT and balance 25% retained for loading on the fleet card.

d. Respective locations would be advised the amount to be loaded in favour of each transporter.

e. In the current scenario facility in the system is not available with the transporter to divert requisite amount from his fleet card to the individual cards provided to the individual trucks and therefore, in the interim transporter would advise through a letter to the location to transfer amount to the individual TTs.

3.1 Volume of business & requirement of TTs.

Volume of Business in the different sectors along with sector wise requirement of TTs is as given below :

Product / Sector / Projected volume for 3 years (in KL) / Percentage of total volume (%) / Requirement of TTs given in the tender. / No. of TTs operating on date
White Oils / FDZ
BFDZ
Adj. state
Other states
Sub total
Black Oil / Above table shall be extended for Black oils as well as ATF where ever applicable.
Sub total
ATF
Sub total
Grand Total

3.2 Tender Status :

Details of the Tender are furnished below in a tabular format.

A. Credential Bids are opened on ______.

Details of the tenders received are tabled below:

Description / Product / No. of tenders offering TTs in the category / No. of TTs offered / Total No. of TTs
<18 KL / 18 KL & above
White oils
Dealer transporters / W/oils
Sole Transporters / W/oils
Total for W/oils(A)
Black oils
Sole Transporters
Total for B/oils(B)
Tenderers offering TTs in for both W/oils & B/oils (C)
Total (A+B-C)

Technical bid evaluation:

Following tenders have been rejected during technical bid evaluation :

Name of the tenderer / Category / Product / No. of TTs / Reasons for rejection
< 18 KL / >18 KL

Status of tenders after technical bid evaluation is as given below:

Description / No. of tenders rejected / No. of TTs offered by the rejected tenderers / No. of valid tenders / No. of TTs offered by the valid tenderers
<18 KL / 18 KL & above / <18 KL / 18 KL & above / Total
White oils
Dealer transporters
Sole Transporters
Total for white oils(A)
Black OIls
Sole Transporters
Total for black oils(B)
Tenderers offering TTs in for both W/oils & B/oils (C)
Grand total (A+B-C)

B. Price Bids opened on ______

Following tenders have been rejected during price bid evaluation :

Name of the tenderer / Category / Product / No. of TTs / Reasons for rejection
< 18 KL / >18 KL

Status of tenders after price bid evaluation is as given below:

3.3 Set of tenderers :

List of tenderers as per ranking: Based on the net financial out go, rankings of all qualified tenderers were evaluated. Total no. of qualified tenderers in each ranking, original quoted rates as well as tank trucks offered is given in Attachment I.

L1 quoted rates are given below:

S no. / Name of L1 tenderer / Quoted rates / Remarks
FDZ / BFDZ / Adj state / Other states
Rs/KL / Ps/KL/KM
White oils
Below 18 KL
1
18 KL and above
1
Black Oils
Below 18 KL
1
18 KL and above
1

3.4 Negotiations :

Comparison of L1 quoted rates with existing rates is given below:

Description / FDZ / BFDZ / Adj.
State / Other.
States
White Oil
Exiting L1 Rates as on ______
Below 18 KL
L1 quoted rates
% variation
18 Kl and above capacity
L1 quoted rates
% variation

Note: Table to be extended to cover all categories

Rates for FDZ are in Rs/KL and rates for BFDZ are in Ps/KL/KM

Since the quoted rates are very high / In order to rationalize the quoted rates negotiations are required to be carried out.

Vide meeting no.______(ref of ECM approval to be furnished), held on _____, ECM has accorded approval for appointing Standing Negotiating Committee, valid up to ______, comprising of GM-Zone, DGM-Finance and Chief / Sr. Manager Operations / D&T, for all proposals of transport contracts needing ECM approval. Accordingly the Negotiating team comprising of the following members conducted negotiations.

Note:List the names and designation of the negotiating team members

Note: The above example is for proposals seeking ECM approval. In respect of proposals seeking ZCC / Regional Bids Committee, applicable details shall be incorporated accordingly.

Projected tank truck requirement is met by the tank trucks offered by tenderers from L1 to L___ ranking. Accordingly, tenderers from L1 to L____ formed set of L1 tenderers and all the set of L1 tenderers were intimated to attend the negotiations vide ______dt _____ sent by ______(mode of communication).

Negotiations were held at ______on ______. Total number of rounds of negotaiations held are ______.

Negotiation process details are as given below.

A. White oils

Below 18 KL capacity:

· Based on total financial outgo, following party (ies) is (are) in the L1 ranking offering one tank truck.

i) (List all the parties in L1 ranking)

· After negotiations with the L1 party, the rates offered by the L1 party are considered by the ZCC as the L1 negotiated final rates.

· _____ parties offering _____ tank trucks are in the L2 ranking.

· Then the ______nos of L2 parties offering _____ TTs in less than 18 KL capacity category were called for negotiations. After negotiations all the L2 parties accepted the counter offered rates / not accepted and submitted revised offer.

Note: Process to be repeated covering all the parties with whom negotiations were conducted.

18 KL and above capacity:

Note: Repeat the process as mentioned above under less than 18 KL capacity for White oils for 18 KL and above under white oil as well as Black oils, ATF etc the other categories covered in the tender.

Negotiations were concluded as all the qualified tenderers were covered in the process of negotiation / requirement of TTs has been met./ Any other (Quote location specific reason, if any).

Finalized negotiated rates:

Ranking / FDZ (Rs./KL) / BFDZ (Ps/KL/KM) / Adj STATES (Ps/KL/KM) / Other States (Ps/KL/KM)
White oils
<18 KL capacity
L1

Note: Table shall be extended to cover all the categories of products, tank truck capacities and rankings.

Recovery at the rate of Ps 8.7 /KL/KM will be made from the transportation bills of those transporters who will become successful in the new tender from ______till such time the tank trucks carryout modifications and get the TTs certified by the third party agency. The process shall be completed in a time bound manner as per approval after which transportation contracts will be signed.

3.5 Rates : Details of the rates finalized along with the existing rates and percentage increase / decrease are as given below.

Particulars / FDZ
Rs/KL
/ BFDZ
Ps/KL/KM / Adj.
State (Ps/
KL/KM) / Other States Ps/KL/KM / Projected requirement of TTS / No.of TTs
offered by the tenderers accepting the negotiated rates
White Oil
Exiting L1 Rates as on ______(date of opening of tender)
Below 18 KL
L1finalized rates after negotiations
% increase w.r.t. existing rates.

Note: Table shall be extended to cover all the categories and rankings

3.6 Status of OMCs

IOC:

Tender floated by HPC includes various new initiatives and there is additional cost implication for implementing the initiatives. Accordingly, for the purpose of comparison, the cost implication of Rs 3.39 for FDZ and Ps 8.7 for BFDZ towards innovations has been backed out from negotiated rates of Rs ______and _____respectively. Rs ____ & Rs _____ have been considered for FDZ and BFDZ. Comparison of value of the contract with negotiated rates of HPC and rates of IOC is given below:

Volume(KL) for 3 years / Rate (Rs) / Amount (in Rs Cr) / Total Amount (in Rs Cr)
FDZ / BFDZ / Adj State / FDZ / BFDZ / Adj state / FDZ / BFDZ / Adj state
HPC
IOC

Rates are in Rs/KL for FDZ and in Rs per KLKM in respect of other sectors.

(Average RTKM for BFDZ is _____ & for Adj. State is ____, Rates for FDZ are in Rs/KL. Rates for BFDZ are in Ps./KL/KM).

As can be seen from the above table, total outflow for HPC is lower / higher by _____% compared to IOC

BPC:

Rates of BPC as on ______are

FDZ – Rs _____ per KL

BFDZ – Ps _____ per KLKM

Rates of BPC are ____% higher / lower in FDZ and ____% higher / lower in BFDZ compared to HPC negotiated rates.

Sub: Bulk POL Transportation Contract for ______Depot / Terminal for the Period from ______To

Sub: Bulk POL Transportation Contract for Depot / Terminal for the Period from To