DGMI/c (Projects-Utility)/Emer.Cont.pr/078-C/2016/Dated03.06.

2016

SUB. : -Proposalfor Balance Civil Works Of IWPH, DWPH, MWPH and ECRs (Package 78C)
for Augmentation of Makeup water and Drinking water system for all new units
of 7.0 MT modernization, at BSP, Bhilai on Open Tender Enquiry basis.

Ref :-(i) Contract No. DGM/PCC/TK/2011/349 Dated 01.10.2011

(ii) DGM/PCC/TK/5(578)R/2016/1534 Dated 11.04.2016.

1. The contract for ‘Augmentation of Makeup water and Drinking water system for all
new units of 7.0 MT modernization ( Pkg. 078 )’ was awarded to consortium
comprising of M/s Vishwa Infrastructure and Services Pvt. Ltd. and M/s V
BhogeshwaraRao, Guntur at a contract price of Rs. 95,92,55,581.00/-(INR Ninety Five
Crores Ninety TwoLacs Fifty Five Thousand and Five Hundred Eighty One only)vide ref
no. 1 on 01.10.2011that has been terminated on 11.04.2016 vide letter under ref.2
due to non-performance of the party. Copy of termination letter is enclosed. Progress
achieved by M/s Vishwa was only 40% at the time of termination.

2. A committee vide order no. ED (P)/267/16/699 Dated 13.04.2016 was constituted to

examine the present status of the work and suggest alternate mode of balance works
,prioritize execution keeping in view the commissioning requirements of major units
like BF-8, PBS-2, SMS-3, URM, BRM, & other MODEX units. The committee has also
discussed about the feasible alternatives based on the present as well as future
aspects of integration with different process and service units as a whole for
execution of balance work for above package.

3. Committee has submitted the report with the recommendation of modality to the
management for approval.Report is enclosed. Following is the recommendation for
the earliest revival of the package:

a. Balance Civil Works related to IWPH, DWPH, MWPH with ECRs:

Presently many areas like intake well pump house, make-up and drinking
water pump houses, and their ECR’s several fronts for civil works as well as
approved drawings are available. It is suggested that civil works of these units
may be awarded on item rate basis on OTE mode with free issue of
reinforcement steel by BSP. Provision shall also be kept to fulfill the
requirement of balance facilities which are yet to be designed and
engineered. Balance civil drawings will be issued by MECON after receipt of
balance design inputs wherever required from vendor on additional
engineering basis to continue work till completion.

The recommendation of the committee has been approved by CEO, BSP

Dated14.05.16. (Copy enclosed).

4. MECON submitted TS& BOQfor “Balance Civil Works Of IWPH, DWPH, MWPH and
ECRs (Package 78C) for Augmentation of Makeup water and Drinking water system
for all new units of 7.0 MT modernization, at BSP”. (Copy enclosed).

5. The subject proposal is in line with the above recommendation of committee.

6. The proposed essential balance work (for which MECON has issued TS and BOQ as
attached herewith to be processed on OTE (open tender enquiry) basis, is in line with
recommendation of committee.

7. It may also be noted that BOQ provided by MECON is based on approved drawings.
MECON in its BOQ has also indicated that the quantities indicated in BOQ are
tentative and may vary during execution subject to (+/-) 15% of the
contract/awarded value.

8. The cost estimate provided by MECON for the subject work is enclosed which works
out to be Rs.5,08,12,715.78/-excluding service tax and also excluding cost of free
issue steel and incidence of service tax on free issue steel.

9. It will be worth mentioning that pipe& valves, reinforcement & structural steel to
contractors will be on free issue basis by BSP which is line with committee
recommendation.

10. The budget requirement of the proposed subject work shall be met from the balance
budget of pkg-078. The details as follows :-
a) Estimated value of work :Rs 5,08,12,715.78/-
b) Cost of free issue reinforcement Steel.
286.7T (@ 40,000/-) : Rs.1,14,68,000.00/-

c) Service Tax [@ 15 % on 40% of (a+b)] : Rs. 37,36,842.95/-

Total :Rs. 6,60,17,558.73/-

11. i) Technical specification along with item wise tender schedule has been prepared by
MECON. The Technical Specification along with tender schedule with itemwise
estimated quantities, Special Conditions of Contract, has been examined and found in
order.

12. The completion period mentioned in TS issued by MECON shall be 5 (Five) months
from the effective date. However as per prevailing practice completion period shall
be 5 (five) months from the date of issue of award letter.

13. It is to be noted that the complete works shall be executed as per TS, BOQ,and Civil
GTS (GS-07) for Non-Turnkey contractsissued by MECON.

14. Since the subject work (Pkg-078C) is part of turnkey package (078), it will be
appropriate to keep provision in tender for security deposit of 5% of contract value
and maximum limit of Liquidated Damage (LD) as 5% of contract value in line with
main Pkg-078, which is mentioned in SCC.

15. Since the work is connected with the commissioning requirements of major units like
BF-8, PBS-2, SMS-3, URM, BRM, & other MODEX units the tender submission/opening
date may be kept as 2 (Two) weeks.

In view of above facts following are proposed:

a. To obtain approval for the Balance Civil Works of IWPH, DWPH, MWPH and ECRs
(Package 78C) for Augmentation of Makeup water and Drinking water system for all
 new units of 7.0 MT modernization, at BSP on Open Tender Enquiry (OTE)basis for
the subject work. The completion period shall be 5(Five) months from the effective
date (Effective Date shall be date of signing the contract or 30 days from the date of
Letter of Award whichever is earlier).

b. Upon approval to issueopen tender enquiry by giving 2 (Two) weeks’ time from
uploading the tender documents in SAIL website. Special Conditions and General
conditions in vogue for the contract to be awarded on item rates (NTK)for an
estimated value of Rs.6,60,17,558.73/-under the scope and BOQ as provided by
MECON.

Submitted for approval please.

Enclosures:

1. Copy of Estimate.
2. TS and BOQ as provided by MECON.
3. Special Conditions of contract.
4. Committee report with recommendation & approval.

(V.S Sai)
DGM(Projects-Utility)

DGMI/c (Projects-Utility)

GM(Projects-Utility)

GM(Projects-Commercial)