ConditionsofaTenderforthe RighttoSign a Contract for

the supply of a pan conveyor belt and chain for the Sintering Shop

  1. Thesubjectofthetender:

Lot№ / Description / Number of sets
1 / Built up belt with rolls, with a chain L=4m for a pan conveyor in accordance with thedata of the OJSC MMK’s Sintering Shop and delivery scope set out in Annex 6. / 49

OJSC MMK reserves the right to split the lot.

2.Form of the Tender

It is a multi-stage tender with a preliminary qualification selection of bidders, request for quotations at the Electronic Auction Platform of OJSC MMK.

Thetenderorganizerreservestheright, butshall not be committed, toprovidean additionalopportunity to decrease the price (quotations declared for the auction).

OJSCММКreservestheright (bydecisionofthetendercommittee) to conduct conference calls with companies participating in the tender by means of telephone communication for the purpose of price optimization. To this end, the tender application (Annex 1) must specify the phone number and the contact person authorized to conduct negotiations by phone.

3. Requirements to the qualification selection

For the qualification selection the bidders shall submit to the organizing team by 21.08.2014 the following documents:

a)confirmation that:

  • the bidders are capable of manufacturing the equipment in compliance with the requirements (drawings) of OJSC MMK;
  • the chain steel grade complies to GOST 588-81;
  • the guarantee period for pans (by wear and burnout) shall be at least 3 years from the equipment commissioning, the guarantee period for chains (by wear) shall be at least 5 years from the equipment commissioning.

b)reference list in respect of the similar equipment;

c)tender application (Annex 1) containing the following data:

  • country of origin of the goods;
  • manufacturing plant(s);
  • year of manufacturing and guaranteed operation period;
  • description of the product (including the short designation and type of the product using letters and figures);
  • regulatory documents applicable to the products manufacturing (TU, OS, etc.) or extracts from these documents regulating the procedures of acceptance, marking, packing , transportation and storage;

Admission to the review of commercial proposals shall be subject to:

a)status in relation to the purchased equipment – manufacturer;

b)opinion of OJSC MMK's technical experts on the conformity of the proposed equipment to OJSC MMK's requirements set out in the tender documentation and its usability under OJSC MMK's conditions (the opinion is prepared in the form of a comparative table);

OJSC MMK reserves the right but shall not be committed to review the proposals from trading companies, provided that:

-the manufacturer's guarantee letter is submitted for the allotment of the equipment to be produced according to the Tender Subject for the relevant delivery term affixed with a blue seal;

-a notarized copy of a manufacturer dealership agreement is submitted (in case the manufacturer is a Russian Federation resident), or (in case the manufacturer is a Russian Federation non-resident) documents confirming the status of a manufacturer's official representative (certificate or manufacturer's guarantee letter).

The above-mentioned documentation shall be forwarded to the organizing team by 21.08.2014 to the following address: 97Ul.Kirova, Magnitogorsk, 455000, 3rd floor, office 319 (Contact persons: Ms. Tatiana Buyankina, phone: 007 (3519) 24-40-92, e-mail: ; Olga Karulya, phone: 007 (3519) 24-75-32, e-mail: ).

Technical offers submitted after the above mentioned date will not be considered.

4. Date of the qualification selection

The tentative date for the qualification selection is 25.08.2014 at the address: 97Ul.Kirova, Magnitogorsk, 455000, 3rd floor, office 314. You will be additionally informed of the results of the qualification selection and the date of the commercial stage of the tender.

5.Deadline for the Delivery of Documents for participation in the tender

Thetenderdocumentationshall besubmitted to the organizing team at least 60 minutes before the tender at the address: 97 Ul.Kirova, Magnitogorsk, 455000, 3rd floor, office 314. (contact persons: Ms. Tatiana Buyankina, phone: 007 (3519) 24-40-92, e-mail: ; Olga Karulya, phone: 007 (3519) 24-75-32, e-mail: ).

The set of tender documentation shall be submitted to the tender committee according to the procedure set out in Annex B Instruction on the preparation and submission of a closed tender application.

  1. Requirements to the equipment

-Manufacturing of the equipment in compliance with the basic data of OJSC MMK (drawings, Annex 6);

-Guarantee period for pans (by wear and burnout) – at least 3 years from the equipment commissioning;

-Guaranteed period for chains (by wear) – at least 5 years after the equipment commissioning.

  1. Terms and conditions of delivery

Offers will be considered under the following terms and conditions:

- DAP/ DDP/CPT Magnitogorsk (Incoterms 2010) – all offers will be adjusted to the same delivery basis (for the purpose of comparison).

- delivery period – March 2015.

8. Price and payment terms and conditions

8.1 The commercial offer price shall be:

-inclusive of transport and overhead expenses,

-exclusive of VAT,

-quoted in Russian ruble.

8.2If the price is quoted in another currency, conversion shall be made to Russian rubles at the exchange rate of the Russian Federation Central Bank as of the Tender date.

8.3. Payment conditions:

8.3.1.The preferred payment condition shall be payment of 90 % against the delivery within 45 days. The last payment in the amount of 10%of the Contract price shall be paid upon the final acceptance of the equipment into operation against the Performance Bond issued by the supplier for 10% of the Contract Price.

8.3.2.Letter of Credit opened for the amount of at least 5 million rubles shall be considered. Type of the letter of credit – irrevocable, uncovered.The validity of the letter of credit- up to 180 calendar days.Payment under the letter of credit shall be made against presentation to the nominated bank of the following documents:

a)Invoice – 1 original;

b)Waybill ( form TORG -12) filled in by the seller andmarked by the Buyer that the goods have been received – 1 copy certified by the supplier.

8.4.The price of the second or any subsequent stage of the tender shall not exceed the price of the first stage of the Tender, except when caused by any additional requirements stipulated by the tender committee at the first stage.

9. Criteria for offer evaluation and supplier selection

-opinion of OJSC MMK's technical experts regarding the conformity of the proposed equipment to the Customer’s requirements;

-optimum price for quality*;

-previous experience;

-conformity of the bidders' offers to OJSC MMK's requirements set out in these Tender Conditions;

-status of the company in relation to the proposed equipment – “manufacturer”;

*The Tenderorganizershall notbeobliged toacceptan offer with the lowest price or any other offer that may be received.

The Tender winner shall, within 15 days of receipt of the contract award notification in writing from OJSC MMK, execute a contract for the equipment supply with OJSC MMK on the conditions set forth in the tender documentation.

OJSC MMK shall reserve the right to revise the tender results should during the detailed negotiation of the project with the tender winner irremediable non-compliance with the performance specification is revealed.

In case of the goods' inadequate quality, refusal to deliver or failure to meet delivery deadlines or any changes in the price stipulated during the tender, the Tender Committee may revise the tender results.

-OJSC MMK shall reserve the right to require the provision of the following documents together with the equipment delivery:

- for imported products:

1.Certificate of origin, containing the information on the country of origin of the goods.

2. ISO 9001 Certificate, confirming that the company has developed and implemented the quality management system.

3. Certificate of quality, certifying the quality of the goods and compliance with the standard requirements and technical specifications.

4. State customs declaration of the Russian Federation issued in the customs mode “IM 40” (GTDIM 40) with the customs stamp “release is permitted” confirming the entry of the goods to the Russian Federation.

Specified in case of the tender for selection of the imported goods supplier on DDP Magnitogorsk terms (Incoterms 2010).

- for domestic goods:

1.GOST R compliance certificate certified by the issuing authority (in case of the mandatory certification) – certifying the compliance with the requirements of technical regulations, set of rules or agreements.

2. Declaration of compliance, certifying the compliance of the manufactured goods to the requirements of technical regulations.

3.Certificate of quality, certifying the quality of the goods and compliance with the standard requirements and technical specifications.

- for imported and domestic goods:

1. Certificate issued by the State Fire Department of the Russian Federation;

2.Permission of the Federal Service of the Russian Federation for Environmental, Technical and Nuclear Supervision;

3.Sanitary and epidemiological opinion of the Federal Service for Consumer Rights Protection and Human Welfare;

Submission of the above mentioned documents is required pursuant to RF Federal Law“On Technical Regulation”No. 184-FZ dated 27.12.2002 andRF Government Regulation No. 982 dated 01.12.2009.

10.Other Provisions

Due to the financial market's volatility the tender organizer reserves the right to revise the tender results (with respect to the quantities and prices proposed at the Tender).

AGREED:

T. A. Buyankina, Senior Specialist, Purchase Support Administration

R. K. Khairutdinov, Manager, Equipment Administration

K. B. Terentiev, Senior Engineer, Equpment Administration