Salem Steel Plant - SteelMint

Salem Steel Plant

Salem – 603 013, Tamil Nadu, India

1/24

Invitation to Tender (ITT)/ Request for Quotation (RFQ)

For Procurement of

MEDIUM CARBON SILICO MANGANESE

Through

On - Line Reverse Auction

Conducted by

Mjunction services limited

Tender No: PU A 412048 : 21.02.2014

DUE DATE FOR RECEIPT OF TENDER : 15.00 Hrs on 20.03.2014

DUE DATE FOR OPENING OF TENDER : 10.00 Hrs on 21.03.2014

Quantity : 2300 MT

Delivery : June’14 to September ’14

EMD : Rs.5.00 Lakhs

Please note that VAT is 5% for supplies sourced from Tamilnadu and Setoff

allowed is 3.6%

Salem Steel Plant


2/24

Dear Sirs

Steel Authority of India Ltd, Salem Steel plan intends to procure Medium

carbon Silico manganese through the process of On line Reverse auction.

Accordingly, the above referred enquiry is enclosed indicating the details of

requirement along with the methodology for participation in the tender /

Reverse Auction.

You are requested to read carefully the instructions contained in our enquiry

and submit your quotation in line with our requirement indicated in the

enclosed enquiry. The quotation is required to be submitted as follows:

Tender to be submitted at The tender Box at

Salem Steel Plant,

Salem , Tamil Nadu, Pin 636 013 India

Tender sent by post / courier to be

addressed to

The Dy General Manager I/c(MM)

Steel Authority of India Limited

Salem Steel Plant

Salem 636 013

Phone: 0091 427 2382457

Fax :0091 427 238 3240

Tender to be submitted by On or before : 15.00 Hrs 20.03.2014

Please note that the quotations received after due date and time will be rejected.

You may contact the undersigned as well as our service provider M/s Mjunction at

the address / telephone numbers mentioned in the enquiry for any clarification.

Tender documents can be downloaded from the sail web site www.sailtenders.co.in.

The same can be had from DGM I/c (MM), SAIL, Salem Steel Plant. Salem Steel

Plant is not responsible for the delayed receipt of tender documents / offer sent by

post.

Thanking you

Yours faithfully

For Steel Authority of India Ltd

Salem Steel Plant

Dy General Manager I/c(MM)

Salem Steel Plant, Salem 13.

http://www.sailtenders.co.in/

Salem Steel Plant


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Contents:

1.0 Tender processing for on line Reverse Auction.

2.0 Service Provider and Issuance of RFQ

3.0 Submission of techno commercial bids

4.0 Eligibility Criteria

5.0 Opening of Techno Commercial Bids

6.0 Participation in On line Reverse Auction for price bidding

7.0 Emergence of L-1 Vendors

8.0 Order distribution

9.0 Commercial terms and conditions

10.0 Security Deposit

11.0 Weight tolerance

12.0 Inspection

13.0 General Terms and Conditions.

Annexures;

Annexure -1 Format for Acceptance of Commercial terms, General Terms and

conditions and all other Terms of the RFQ.

Annexure II format of Technical specification

Annexure III format for basic information of the vendor.

Annexure IV Definition of Key Terms – Reverse Auction.

Annexure V General rules and regulations governing conduct of On line Reverse

Auctions on Mjunction Platform

Annexure VI Format for submitting last quoted prices.

Salem Steel Plant


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MATERIALS MANAGEMENT DEPARTMENT

Enquiry No PU A 412048 dt 21.02.2014

For supply of Medium carbon silico manganese

Price bidding through On Line Reverse Auction

EMD : Rs.5/ Lakhs

Due date and time for submission of tender : 15.00 Hrs 20.03.2014

(Techno Commercial Bid)

Due date and time for opening of Tender

(Techno Commercial Bid) : 10.00 Hrs 21.03.2014

1.0 Brief description of the Tender processing for On Line Reverse Auction is

given below:

1.1 Tenderers shall submit their techno commercial bid only along with all

required documents as per the terms of enquiry to DGM I/c (MM)

Steel Authority of India Ltd, Salem Steel Plant, Salem, 636 013, India.

1.2 All the tenderers whose offers are found techno commercially

acceptable become eligible for participating in price bidding through

On Line Reverse Auction over Internet.

1.3 On Line reverse Auction (RA) will be used for Part II price bid

evaluation, date and time of which will be intimated to you later.

1.4 Non placement of bid by an eligible bidder during the Reverse Auction

event may adversely affect consideration of the bidder for the

subsequent RFQ.

1.5 The service provider would intimate Date and Time for Start of

Reverse Auction and duration of auction to the tenderers in advance.

Login ID and Password specific to each tenderer is given and

demonstration of bidding (on line) process would also be provided to

enable each tenderer to fully understand the process of bidding On

line. (for details please refer item 5.0)

1.6 Thereafter, at scheduled time the screen for ON line bidding is

launched wherein the supplier would put in their best offers through

On line bids by which the bids below the start bid price can be

submitted by the tenderers to secure orders for the supply of items /

services.

1.7 All eligible tenderers having password can view the bidding on the

computer screen and also enter their prices any number of times

during the duration of bidding.

1.8 The bidder quoting the lowest price at the close of auction time /

extended auction time becomes eligible for getting the order for

tendered item / quantity if it has been decided to place order on only

one party at the Tendering Techno commercial evaluation stage. SAIL

may distribute order on more than one party before conduct of

Reverse Auction.

1.9 L1 bidder to get maximum share of order volume, if not constrained

by capacity / capability (as assessed by Salem Steel Plant). In case of

multiple sourcing, the same shall be guided by the SAIL Purchase /

Contract Procedure 2009(PCP 09).

Salem Steel Plant


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Overview of the ITT/RFQ

1.1 Purchase Cost Reduction Objectives of SAIL/SSP

Steel Authority of India Ltd, Salem Steel Plant (SAIL/SSP) aims to

reduce Purchase Cost of substantially. To achieve this target, SSP is

adopting the on-Line Reverse Auction (RA) methodology.

1.2 Key Features in Medium carbon silico manganese Purchase Process

This Invitation To Tender (ITT) /Request for Quotation (RFQ) is

subject to the general conditions of contract governing supply

contracts (SAIL-P/1) and other special terms and conditions for the

procurement of by SSP as detailed herein and in the enclosed

annexure.

Use on-Line Reverse Auction (RA) for price bid evaluation.

Evaluation of the lowest tenderer (L1) on per MT Landed Cost Net

of Cenvat (LCNC) on free delivery at plant stores basis.

L1 Tenderer to get maximum share of order volume, if not

constrained by capacity /capability (as assessed by SAIL/SSP), in

case of multiple sourcing and the same shall be guided by SAIL

Purchase Contract Procedure-2009 (PCP09)

2.0 Service Provider (SP) and the Issuance of RFQ

SAIL has engaged the services of its Joint Venture Company M/s Mjunction

services limited (MJ) for conducting the Reverse Auctions on behalf of

SAIL/SSP. MJ is fully authorised to give clarifications / coordinate with the

suppliers in consultation with SAIL/SSP w.r.t conduct of Reverse Auction for

procurement of Medium carbon silico manganese. Their address is given

below:

Corporate Office Chennai Office

mjunction services limited

Godrej Water Side, 3rd Floor,

Tower – 1, Plot – V,

Block – DP, Sector – V, Salt

Lake,

Kolkata – 700091, West

Bengal, India


Basement, New No. 91,Old No.44,

Armenian Street,

Chennai-600001

Ph : 033 – 66011721 to 1729

Fax: 033 –66011725

Fax: 044-25216536

Contact Persons

Ms.Vani burra

66106299

Mobile: 09163348103

Ms. Naaz Ansari

66106174

vani burra @mjunction.in

Naaz [email protected]

Mr. Thiruvalluvan

Mobile :8056111993

Email :

[email protected]

Mrs.Uma.R

Ph: 044 -64624733 to 35

[email protected]

mailto:[email protected]


Salem Steel Plant


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2.2 Suppliers who are acceptable to SAIL/SSP and who accept all the

Terms and Conditions shall be intimated by M/s Mjunction services

limited to participate in the Reverse Auction to be held on the date

mentioned in the first page of the RFQ.

2.3 The ITT / RFQ shall be sent by SAIL/SSP to the approved list of

suppliers. Simultaneously a copy of the same shall be given to the

Mjunction to contact the supplier(s). MJ will explain the Reverse

Auction process to all the prospective tenderers and clarify issues, if

any. It will be the responsibility of the tenderers to get themselves

acquainted to their satisfaction with the on-Line bidding process by

thoroughly interacting with MJ. Only SAIL, SSP will be empowered

to approve any deviations from the ITT/RFQ asked for by the

Supplier.

2.4 Vendor Enablement – MJ shall have the responsibility of familiarizing

the tenderers with the Reverse Auction Process (including training to

the vendors).

3.0 Procedure for filling up and submission of techno commercial bids:

3.1 Tenderers will have to submit Techno commercial bid as a first step.

The techno commercial bid comprises of Technical & commercial bid

which has to be submitted in two copies in a sealed envelope. The

envelope should clearly be super scribed with Enquiry Reference, due

date and time of submission, due date and time of opening and clearly

indicating “ This envelope contains Techno commercial bid against

Enquiry No PU A 412048 dt 21.02.2014 for procurement of Medium carbon

silico manganese through on line reverse auction. The techno commercial

bid should include the following:

3.1.2 A letter from the bidder accepting all commercial terms and

conditions, general terms and conditions and all other terms and

instructions contained in this enquiry. Also an undertaking from the

bidder that they have understood the Reverse auction process and are

willing to participate in RA process and shall abide by all the rules and

regulations of the RA. Format for the letter and the undertaking are as

per the format given in Annexure I.

3.1.3 Confirmation of acceptance of Technical specification, inspection

procedure and criteria for acceptance vide Annexure II.

3.1.4 Details of Taxes and duties vide Annexure III.

3.1.5 Basic information regarding the supplier vide annexure IV.

3.1.6 Certified / attested copies of all documents asked for in the enquiry

3.1.7 Name of the person who is authorized to bid in Reverse Auction on

behalf of the firm / supplier. The user ID and password would be given to

this person only.

3.1.8 The E.C.C registration and Excise Tariff Code, state and Central Sales

Tax Registration Nos, if applicable.

3.1.9 One copy of enquiry (all pages) signed on each page to be submitted to

acknowledge receipt and as a token of acceptance of terms.

3.2.1 Techno Commercial bid should not contain any price or any indication

of prices; else the offer will be rejected.

Salem Steel Plant


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3.2.2 Price bid shall be submitted on line directly to mjunction (web page

to be accessed through URL : http://www.buyjunction.in). Reverse

Auction shall be conducted with techno commercially acceptable

vendors. On line price bid shall be opened in case of failure of

Reverse Auction. In case if adequate techno commercially

acceptable offers are not received, the on line price bid shall be

opened and case will be finalized off line.

3.2.3 Offers received after the due date and time will be rejected.

4. Eligibility Criteria

Medium Carbon Silico Manganese

1 The tenderer shall be a manufacturer of Medium Carbon Silico

Manganese (MC Si Mn)

A self-declaration by the tenderer that he is a manufacturer of

“Medium Carbon Silico Manganese (MC Si Mn)” in their letter

head to be enclosed with the techno-commercial bid.

Documentary evidence supporting that the tenderer is a

manufacturer of Ferro-alloys in the form of self-attested copy of

central excise registration or small scale industry registration or

factory license of other documents issued by Govt. agencies is

to be submitted along with the tender.

2 The tenderer shall have successfully supplied at least 690 MT of

“Medium Carbon Silico Manganese (MC Si Mn)” to any industry

in India.

The quantity may be executed through a single order or

multiple orders in any one of the last four financial years viz.

2010-11, 2011-12, 2012-13 or 2013-14 (April ‟13 to Jan ‟14)

Self-certified copies of the purchase orders shall be enclosed

along with the offer as an evidence for the executed orders /

supplied quantity.

3 The average annual turnover of the tenderer during the last

three financial year(s) ended 31.03.2013 shall not be less than

520 lakhs.

Self-certified copy of audited balance sheet / profit & loss

statement for the last three financial years or a certificate from

a qualified chartered accountant shall be enclosed with the

techno-commercial bid of the tenderer as an evidence for annual turnover.

4 Documentary evidence supporting that the tenderer is a

manufacturer of Ferro alloys

Self-certified copies of purchase orders.

Self-certified copies of audited balance sheet / profit & loss

statement or a certificate from a qualified chartered accountant.

The offers without the above mentioned shall be treated as invalid.

http://www.buyjunction.in/

Salem Steel Plant


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4.0 Opening of Techno Commercial Bids.

4.1 The Techno commercial bids will be opened on 21.03.2014 at 10.00 hrs at

Salem Steel Plant, Salem in the presence of authorized representatives of

tenderers who might choose to be present.

5.0 Participation in On Line Reverse Auction for price bidding.

5.1 Tenderers will be required to participate in On line Reverse auction over

Internet for bidding.

5.2 Definition of Key Terms of Reverse Auctions are given in Annexure V and

General Terms and Conditions are given in Annexure VI.

5.3 The key features for participation in a Reverse Auction are given below:

5.4 The Reverse Auction will be conducted on Service Provider‟s platform.

5.5 The service Provider shall intimate information regarding schedule (date and

duration) of the Reverse auction to all the techno commercially acceptable

tenderers.

5.6 There would be an auto extension of bid time in case bids are placed during

last seven minutes of the indicated bid closure time. The auto extension rule

will extend the bid time by a period of seven minutes till bids continue to get

placed or the buyer decides to terminate the Reverse Auction.

5.7 All bidders should nominate a person who would be the authorized “Bidder

“(i.e, the person who is authorized to bid in Reverse Auction on the Firm‟s

behalf). The “USER ID” AND „password” will be given to this person only. The

Service Provider will intimate a secure and confidential Login ID and Password

specific to each tenderer, for participating in the Reverse Auction.

5.8 The Start Bid Price may be the L-1 of the initial on line sealed bidding.

5.9 The bidding will take place in Indian Rupees and for unit metric tonne.

5.10 During the Reverse Auction, bidders have to quote for the full quantity else

their bid will not be accepted. Bidders shall not be allowed to quote for part

quantity. However, SAIL reserves the right to distribute the quantity of an

item among multiple suppliers at its sole option.

5.11 During the Reverse Auction, suppliers shall be allowed to revised their price

and bring it downward only. Bidders are not allowed to quote above the

Start Bid Price under any circumstances.

5.12 All bidders have to confirm through a letter / fax (0091-33-66011720) their

last quoted prices for each market within four hours of concluding the Reverse

Auction (format enclosed as Annexure VII). They also need to mention in the

same letter, if they have matched L-1 prices On line, if offered to match.

Salem Steel Plant


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5.13 All bidders are advised to quote from a reliable Internet facility as neither SAIL

nor MJ (SP) would be responsible for any failure in the Internet connectivity

during bidding.

5.14 It is categorically to state on behalf of M/s SSP, and M/s Mjunction that the

Tenderers need not pay any fee towards training, for actual bidding etc., in the

Reverse Auction and the Tenderers need not subscribe to any of the services in

lieu of participation in the Reverse Auction.

5.15 Written Acceptance in-toto to all the Terms & Conditions mentioned in this

document is a pre-requisite for securing participation in the on-line Reverse

Auction conducted by Mjunction on behalf of Salem Steel Plant for the

products/ services above. Hence, the tenderer is requested to sign all

pages of this RFQ and submit along with the Techno Commercial bid.

6.0 The emergence of L1 vendors in the Reverse Auction shall be decided on the

basis of Lowest Price offered for supply at Salem Steel Plant, Salem.

7.1 The lowest price offered for the item as the case may be, would become the L-

1 tenderer. The rank of other tenderers, i.e, L2, L3, L4 etc will be decided

based on prices quoted by the tenderers during Reverse Auction.

The bidders shall submit their detailed price break up clearly specifying the basic

price, taxes and duties, freight etc within two working days of the closure of the

auction to Ms.Vani burra with a copy to DGM I/c (MM) Salem Steel Plant,

Salem.

8 Purchase preference to India PSU/ Indian Govt Organisations:

8.1 Purchase preference to PSUs Government organisations shall be based on the

guidelines issued by the Government of India / SAIL.

9 Commercial Terms and conditions

9.1 Validity of the offer: The Techno commercial offer should be kept valid for 180

days from the due date of tender opening and the on line price bid should be

kept valid for four weeks from the date of holding the Reverse Auction.

9.2 Payment terms: 100% payment will be made within 30 days of receipt and

acceptance of materials.

10 Weight recorded at SSP weighbridge will be considered as final. Weighment

tolerance range of minus 0.5% of the supplier‟s challan weight, the supplier‟s

challan weight shall be considered final for payment.

10.1 If the weighment at SSP is found to be more than the Challan weight, athe

acceptance and payment shall be restricted upto the challan weight.

10.2 In case the weighment at SSP is found to be less by more than 0.5 percent of

the challan weight, the weighment found at SSP shall be considered final for

acceptance and payment.

11 INSPECTION: Inspection will be done at our end based on the test analysis

report furnished by the supplier.

Salem Steel Plant


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12 General Terms and conditions:

12.1 The RFQ shall be read in conjunction with the “General Conditions of Contract,

SAIL-P! (can be downloaded from SAIL website given above). and in Invitation

to Tender published by the Purchaser together with any other document issued

and forming part of this tender. All these documents shall form the complete

set of documents. They are complimentary and anything called for by one and

not called by the other shall be considered as binding as though called for by

all. Wherever the clauses stipulated in the General Conditions of Contract are

contradictory to those stated herein, the terms indicated in this RFQ shall have

precedence.

12.2 If any trend of cartel formation is observed in the tendering & bidding

process, bids of all tenderers involved in cartel formation are liable to be

rejected.

12.3 Tenderer must declare whether the proprietor or any partner of the firm, or

director of their company, has any relation with any employee working in

SAIL, if so give the name of the employee and the relationship and also

whether any of them has a relationship within the meaning of section 6 of

companies Act 1956 with any directors of SAIL and if so, give details.

12.4 SAIL in its sole discretion, unconditionally and without having to assign any

reason, reserves to itself the right:

To accept or reject the lowest offer or any other tender or all the

tenders.

To accept any tender in full or in part.

To apportion the total quantity amongst different tenderers.

To allow purchase preference to the PSU and Joint Venture with PSUs

as per the extant guidelines of Government of India.

To accept or reject the RA result. The tenderers would have no claim

for issuance of Pos in such cases.

To cancel or reschedule Reverse Auction when confirmed bidders are

insufficient to conduct Reverse Auction.

13 In the event of receiving same price in the Reverse Auction, Ranking

will be declared on the basis of first come first serve basis

14 ALL OTHER TERMS AND CONDITIONS SHALL BE AS PER THE GENERAL

CONDITIONS OF CONTRACTS GOVERNING PURCHASE

CONTRACTS(SAIL/P1) WHICH IS AVAILABLE IN THE SAIL WEBSITE

WWW.SAIL.CO.IN

Dy General Manager (MM-Purchase)

Salem Steel Plant, Salem – 636 013

Phone: 0427 – 2382076

Fax: 0427 – 2383240

E-mail: [email protected]

http://www.sail.co.in/


Salem Steel Plant


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The details of the tenderer authorized to bid on our behalf are as

follows.

Name :

Designation :

e-mail ID :

Contact phone no :

Address :

Acceptance to the Rules and Regulations:

We have gone through the general rules and regulations and confirm our

acceptance of the same in toto.

Signed & Stamped in acceptance of the terms & conditions

Name :

Designation of Signatory :

Organization :

Contact Phones :

Date & Place :

For any clarifications, please contact:

Ms.Vani burra / Ms. Naaz Ansari

66106299/ Mobile: 09163348103

Ms. Naaz Ansari

66106174/ Mobile: 9163348211

During Auction-033-66011721-728

Ms.Uma 044 64624733-34-35 email id:- [email protected]

Salem Steel Plant


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ANNEXURE - I

(To be submitted on Supplier‟s Letter Head)

Format for Acceptance of Commercial Terms, General Terms and Conditions

and all other Terms of the RFQ

We _____________________________________________________________

(Supplier Name)

having registered office at ___________________________________________

(Address)

agree to all the Commercial, General & other Terms & Conditions listed in the

Enquiry No._____________________________________________

dated___________________________________________

for procurement of Medium carbon silico manganese through Reverse Auction.

We confirm that we are in a position to supply material as per the specification given

in Enquiry. We have also understood the Reverse Auction Process and the Reverse

Auction rules and special instructions given in the Enquiry. We agree to participate

in the Reverse Auction and abide by the rules. We nominate an executive, whose

details are given below, to put the bids on our behalf.

The details of the bidder authorised to bid on our behalf is as follows.

Name & Designation:

E-mail ID :

Contact phone nos. :

Address :

(Signature & Seal)

Place:

Date:

Salem Steel Plant


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ANNEXURE-II

Specification.

1. Material MEDIUM CARBON SILICO MANGANESE

2. Condition Lumps

3. Chemical Specification

Element Percentage

Manganese 55.0% Min

Silicon 20.0% Min

Carbon 0.5% Max

Phosphorous 0.15% Max

Sulphur 0.02 % Max

Size 10-70 mm 90% Min

>70mm- Nil

0-10mm- 10% Maximum

Packing In HDPE Jumbo bags capable of

withstanding multiple handling & Transit

Damage.

Net Weight Each bag shall have 1 MT of Material

Marking on packing 1. P.O. No

2. " MC Si Mn"

3. Supplier's Name in Abbreviation

4. SAIL/SSP

5. Bag No.

6. Gross Weight & Net Weight

Delivery As per SSP schedule

Test Certificate Test certificate must show analysis of all

above elements and size.

Inspection, Sampling and Analysis 1. Inspection of material shall be done

after receipt of material at SSP

2. Samples shall be collected on a

representative basis and testing shall

be done as per prevailing practice at

SSP

3. In case of any dispute raised by

vendor on SSP test results

Salem Steel Plant


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.

• Re- testing will be done with umpire

sample(retained during original

testing) in presence of vendor‟s

representative, SSP inspection agency

and Met Services Lab as per SSP

Practice.

• No request for Re-testing in

presence of Vendor‟s representative

will be entertained after 15 days from

the date of intimation of test results

to the vendor

• The supplier shall depute his

representative within one week, from

the date of intimation by SSP, fails to

depute, SSP test results will be final

and binding.

• SSP laboratory analysis results shall

be final and binding.

Acceptance/ Rejection Criteria

Element Requirement Deviation/Remark

Manganese 55.0% Minimum 53% to 55% pro- rata

basis of payment

Below 53% rejected.

Silicon 20.0% Minimum Below 20% rejected

Carbon 0.50% Maximum More than 0.5% rejected

Phosphorous 0.15% Maximum 0.15% - 0.17% =

2% penalty

Above 0.17%

rejected.

Sulphur 0.02% Maximum 0.02% - 0.04% =

1% penalty

Above 0.04%

rejected.

Salem Steel Plant


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ANNEXURE – III

Format for Basic Information of the Vendor

Enquiry Number :PU-A412048 Dated 21.02.2014

Instructions to fill up the Basic Information:

(i) Please use this worksheet to specify basic financial/ IR/ Contact

information; an authorized person should sign the document at relevant

section.

(ii) Past Industrial Relations track record, please mention if there was

closure/ cessation of work at any of your plant(s) in the last 5 years.

(iii) Use this form as Proforma/ Format. Use additional sheets to provide

relevant information.

(iv) Provide all the certified relevant documents w.r.t claims made in this Form.

1 Company‟s Name

2 Ownership Details

3 Manufacturer/ Distributor/ Dealer

4 ISO Status

5 Contact Person & Designation

6 Phone No.

7 Fax No.

8 E-mail

I hereby certify that all information provided above is correct to the best of my

knowledge.

(Signature, name & seal of the authorized person)

Salem Steel Plant


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ANNEXURE IV

DEFINITION OF KEY TERMS

Reverse Auction

Reverse Auction refers to a forum where the requirement for one/ more Markets of

an item is stated and the participants are required to bid down the price to be

selected to supply the requirement.

On-line Reverse Auctions

On-line Reverse auctions refer to those Reverse Auctions conducted through the

Internet with simultaneous bidding (from one or more locations). In other words, the

venue for the auction is on an Internet website/ platform. The Mjunction website

(http://www.buyjunction.in ) or any other URL assigned by Mjunction would

constitute the venue for the purpose of the On-line auction.

Award at the Reverse Auction

The tenderer quoting the lowest price is normally allotted the item unless otherwise

specified by the Client.

Client

Client is the individual/business entity who has contracted Mjunction to conduct such

Reverse Auction. In case of Reverse Auction, the purpose would be to meet their

requirement for item/s from among the sellers desiring to sell the items to the

Client.

Tenderer

Tenderer is the individual/business entity participating in the Reverse Auction,

intending to supply the item/s to the Client. To become a Tenderer in the auction, a

business entity has to secure client approval for participation and also provide

written assent to the General Rules and Regulations

Auction Engine

Auction Engine refers to the software that encapsulates the entire auction

environment, processing logic and information flows. Mjunction is the sole owner of

the auction engine and retains exclusive right over the utilization of the same.

Preview Time

Preview Time refers to the period of time that is provided prior to the

commencement of bidding. This is to facilitate approved participants to view the

auction details such as item specifications, bidding details and bidding rules. The

purpose is also to familiarize participants with the functionalities and screens of the

auction mechanism. It is not mandatory for Mjunction to provide Preview Time.

Start Time

Start time refers to the time of commencement of the conduct of the On-line

auction. It signals the commencement of the Price Discovery process through

competitive bidding.

Duration of the Reverse Auction

It refers to the length of time the price discovery process is allowed to continue by

accepting bids from competing tenderers. The duration of the auction would

normally be for a pre-specified period of time. However, the bidding rules may state

the conditions when the pre-specified duration may be extended/ curtailed. The

conditions include:

http://www.buyjunction.in/

Salem Steel Plant


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Curtailment of auction duration in the event of no bids for a specified period of

time (Inactivity Time)

Automatic extension in the event of bids being entered towards the end of the

scheduled duration to facilitate the other tenderers to view and react to the bid.

Auto Extension of the Auction Timings

In the event of bids in the last few minutes of the scheduled bid time, the Bid

Timings are automatically extended for a specified period from each such bid. Such

Auto Extension shall continue until no bids are placed for the specified period

(Engine remains inactive for the specified period). The Inactivity Time for Auto

Extension purpose is normally 3 minutes. Mjunction however retains the right to

change the same in consultation with SAIL/SSP. The Inactivity Time applicable for

the particular On-Line Bid shall be communicated to the tenderer if it will be set to a

value less than 3 minutes.

End of the Reverse Auction

End of the Auction refers to the termination of the auction proceedings signaling an

end to the price discovery process.

Auction Report

Mjunction would provide an Auction Report to the Client containing a summary of

the auction proceedings and outcome. The Auction Report would constitute the

official communication from Mjunction to the client about the outcome of the

Reverse Auction.

ID and Pass Word - Password and ID shall be given to all the eligible vendors by

the Service Provider for enabling the vendor to participate in the Reverse Auction.

Start –Bid Price – Start Bid Price is the estimated Price of a lot decided by

SAIL/SSP. This is the Maximum Price, which will be accepted by the Reverse Auction

engine. Supplier have to quote a price lesser than the Start Bid Price for

participating in the Reverse Auction. The computer shall not accept Price higher than

Start Bid Price for a lot. Bidding will start at start Bid Price to be intimated in

advance to the vendors eligible for bidding. This will be put up on the site and will

also be communicated in advance through Fax/ email.

Minimum Decrement- Minimum decrement is the minimum amount a supplier has

to reduce in order to beat a higher bid. For example, if a tenderer bids Rs

10,00,000/ - for a Market, others, in order to beat this bid, have to quote a lower

price with a minimum decrement say of Rs 100/- i.e. in order to be eligible they

have to quote Rs. 9,99,900/- (or lower) for the same Market. This minimum

decrement shall be pre-decided by Steel Authority of India Limited and will be in-

built and displayed in the computer.

PROXY BID- In the following circumstances, a tenderer may opt for proxy bidding.

Where the tenderer is not confident of a reliable Internet Connectivity

Where the speed of Internet Connection is slow and unable to catch-up with

the speed of competitor‟s bids.

To remain a leading tenderer till the lowest bid value fed in the auction

machine.

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Where the tenderer is required to put bids in more than one Market/Lot at a

time

Following is the outcome when a tenderer exercises the proxy option:

A proxy bid remains L1 till the lower bid value fed in the auction machine is

exhausted i.e. a lower bid, less than the lower bid value offered by the tenderer

exercising the proxy, is offered by another tenderer. If a tenderer bids a price equal

to the lower limit of the proxy bid, the proxy tenderer gets precedence over him at

that price.

To let the system place bids on your behalf you need to check (click) the proxy bid

box on the bidding details page and place the lowest value to which you can bid and

then place submit button and confirm. Once the proxy is activated the bids are

placed automatically as per the minimum decrements. The lowest value of your

proxy bid amount is not visible by any other tenderer.

Example: Suppose, the current bid in the market is Rs.10000 and the min.

decrement is Rs.100 and you have activated proxy till Rs.9500. Now say a tenderer

places a bid of Rs.9800, the system automatically bids Rs.9700 on your behalf at the

same time and keeps you as a leading tenderer.

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ANNEXURE V

General Rules and Regulations governing conduct of On-line Reverse

Auctions on the MJUNCTION platform and Terms and Conditions of the

Buyer (SAIL/SSP)

INTRODUCTION

The General Rules and Regulations provided herein govern the conduct of On-line

Reverse Auctions operated by Mjunction.com Private Ltd. These rules cover the roles

and responsibilities of the parties in the On-line Reverse Auctions on the Mjunction

platform. Acceptance in-toto to these General Rules and Regulations is a pre-

requisite for securing participation in the On-line Reverse Auctions on the

Mjunction platform.

The key terms pertaining to the On-line Reverse Auctions are provided in the

Annexure I. Prospective are advised to read through the same.

Role of Mjunction

Mjunction is the agency (operator) primarily providing the forum for conducting the

Reverse Auction. As the agency providing the auction engine, the role of Mjunction

would include:

input of the details of the auction items and defining of the bidding rules as

desired by the client, market making and training of prospective vendors

Providing access to the approved vendors to participate in the auction.

enhancing tenderer awareness of and comfort with the auction mechanism and

bidding rules

summarizing of the auction proceedings & communicate the outcome to the

Client

The responsibility for fulfillment of the contract rests between the tenderer and the

client, and Mjunction shall have no liability on this account.

Role of the Tenderer

The role of the tenderer is outlined below:

The tenderer would participate in the Reverse Auction with the aim of bidding to

secure the auctioned item in the auction (being selected for supplying the client‟s

requirement in a Reverse Auction).

The tenderer would be provided access to the Auction through a User Id

protected by a password. The tenderer needs to ensure that the User Id and

password is not revealed to unauthorized persons.

Access to the auction mechanism shall be provided to all the approved tenderer

subsequent to obtaining their written consent to the General Rules &

Regulations.

In the event of winning an allotment in the auction mechanism, the tenderer

shall commit to fulfill outlined obligations under the contract.

Bidding Rules:

The Bidding Rules refer to the information and terms defined specifically for a

particular Reverse Auction. The purpose of the Bidding rules is to provide approved

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tenderer with the information and terms specific to the auction in which they are

bidding. This would include:

Definition of the unit of bidding

Start Time and duration of the Reverse Auction

Any extension of the duration of the auction in the event of bids being

received towards the end of the pre-specified duration

Reserve Price (if specified)

Minimum & Maximum Bidding Quantity (if specified)

Price Decrements and any reduction in the price decrements in the auction in

the event of inactivity

Other attributes (informational/non-negotiable in nature)

Definition of the underlying supply contract (qty, delivery schedule, freight,

insurance & local levies) etc. Participation in the auction process presumes complete awareness and

understanding of the bidding rules.

Conduct of the Reverse Auction

The Reverse Auction shall be communicated on pre-specified date. The key terms

pertaining to conduct of the Reverse Auction such as Preview Time, Start Time,

Duration and End Time have been specified in the Annexure.

Mjunction retains the right to cancel or reschedule the Reverse Auction on any of the

followings reasons:

The number of confirmed is deemed insufficient to conduct the Reverse Auction

Some of the confirmed tenderers are unable to access the module due to

infrastructural problems such as sustained power failure or telecommunication

breakdown.

No bid shall be accepted which is above any start bid price, or

It is determined that one or more tenderers have submitted bids which are

clearly below Cost.

If the buyer decides so.

The duration of the auction may also vary from the pre-specified period of time on

account of termination of the auction by Mjunction:

a) on the advice of the client or

b) on its own accord in case of situations where it is felt that continuance of the

auction proceedings is prejudicial to the smooth conduct and/or the integrity of

the auction process.

Problems during the conduct of the Reverse Auction

In the event of any problems being faced in the smooth conduct of the auction,

Mjunction shall have the right to undertake one or more of the following steps:

Cancellation/ premature termination of the Reverse Auction with/ without a

subsequent rerun of the auction on a mutually decided date

Cancellation of a bid

Locking a tenderer‟s account (suspending operations of the account), etc.

Liability of Mjunction

Mjunction shall not be liable to the client/ in the auction or any other person/s for:

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any breach of contract by any of the parties in the fulfillment of the underlying

contract

any delays in initiating the On-line auction or postponement/cancellation of the

On-line auction proceedings due to any problem with the hardware/ software/

infrastructural facilities or any other shortcomings.

Confidentiality Clause

Mjunction undertakes to handle any sensitive information provided by the client or

confirmed for the Reverse Auctions with utmost trust and confidentiality.

Jurisdiction

Any disputes relating to the On-line auction module shall be subject to the sole

jurisdiction of civil courts of Kolkata only to the exclusion of any other court.

Right of the Client

SAIL/SSP reserves the right to fully/ partly accept the bids or completely reject the

same.

Acceptance to the Rules and Regulations:

We have gone through the general rules and regulations and confirm our acceptance

to the same. We have also gone through and fully understood the product

specifications and other terms and conditions specified by SAIL/SSP enclosed

herewith.

Signed in acceptance of all the terms and conditions listed in Annexures I and II.

Signature : Date :

Name :

Place :

Designation :

Attested with Company Seal

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Contact details (incl contact e-mail ID) of the company seeking to participate as a

Tenderer in Reverse Auction.

Mjunction retains the right to extend or cancel or reschedule the reverse auction on

any of the following reasons:

Sl Circumstance Action

01 Auto Extension Of

Bidding Time

ONLY in the event of any bid being placed in the last

3 minutes of the scheduled bidding time, the bidding

time shall automatically extend by 3 minutes from

each such bid. This Auto Extension mechanism

remains activated until a continuous inactivity period

(i.e. no bids being placed by any bidder) of 3

minutes is reached at which point the market shall

close

02 Cancellation of event /

bid

1. The number of confirmed bidders is deemed

insufficient to conduct the reverse auction.

2. On Advice of the Buyer

3. MJ on its own accord - in case of situations where

it is felt that continuance of the auction proceedings

is prejudicial to the smooth conduct and/or the

integrity of the auction process.

4. Cancellation/ premature termination of the

reverse auction with/ without a subsequent rerun of

the auction on a mutually decided date between

Client and MJ.

5. Cancellation of a wrong bid

6. Locking a bidder‟s account (suspension of

operations in the account)

03 Poor Participation 1. Manual extension carried out if less than 10

bids received

2. Reserve / expected price not met.

3. It is determined that one or more bidders

have submitted bids which are clearly below

Cost

4. On the advice of the Buyer

04 Unable to access the

module due to

infrastructural problems

- Internet Problems

being reported by

bidders

1. Manual extension carried out till connectivity

restored or MJ will bid on behalf of bidder after

obtaining suitable authentication.

2. The number of extensions and the time involved

in each extension is on the judgment of the auction

controller concerned.

05 MJ server not able to

connect to the Internet

cloud

To the extent possible, all auctions will be extended

until the problem is resolved/ internet connectivity

of MJ machine improves.

Ability to extend depends upon time available, as

also ability of MJ staff to connect to the MJ machine.

06 Power failure/ Planned

power shutdown in his

MJ will bid on behalf of bidder after obtaining

suitable authentication. (The party will inform his

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area reported by an

interested supplier

minimum price and will also inform his user id and

password)

Manual extension may be involved if the call is

received just before closure, and MJ staff does not

have sufficient time required to make a bid.

At the request of the Client, Mjunction may permit bidding through a combination of

online and offline means (offline means including phone/fax/email). However in such

event, Mjunction would not be responsible for any errors in transmission or entry of

the information received in the offline medium. It must be expressly understood that

such facilities if and when extended are only for the convenience of bidders and, while

reasonable care and caution shall be taken by Mjunction, the ultimate responsibility

for the same shall rest with the bidder/s.

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ANNEXURE - VI

Format for submitting last quoted prices

(to be submitted on Company Letter Head of the Bidder )

To


Godrej Water Side, 3rd Floor, Tower – 1, Plot – V,

Block – DP, Sector – V, Salt Lake,

Kolkata – 700091, West Bengal, India

Fax: 033 – 66011720

Subject: Reg. Reverse Auction for Medium Carbon Silico Manganese

Reference above, we hereby confirm our item-wise last quoted prices in the Reverse

Auction held on …………….. for ………………for Salem Steel Plant.

Items Last quoted price

We also confirm that we will submit item wise price break-up, within 48 HOURS from

the TIME OF Reverse Auction.

Signature :

Name :

Designation :

Date :

Salem Steel Plant - SteelMint

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