ONGC VIDESH LIMITED MATERIALS MANAGEMENT
Description: ONGC VIDESH LIMITED MATERIALS MANAGEMENT DEPARTMENT AGENDA Introduction and Objectives Policy formulation ONGC Videsh Procurement Corporate office Procurement Overseas offices Procurement BD activities Key Initiatives Awareness to
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slide1. ONGC VIDESH LIMITED MATERIALS MANAGEMENT DEPARTMENT<br>
slide2. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide3. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide4. OBJECTIVES OF THIS PRESENTATION For understanding of business partners of ONGC Videsh.
To use the Website as a platform for suggestions/feedback from business partners.
Awareness for business partners regarding,
Tendering process of ONGC Videsh;
ONGC Videsh’s expectations from bidders and contractors;
Elimination of common errors noticed in bids and during execution of Orders/Contracts.
Familiarization of the business partners with key procurement initiatives, viz.
Purchase through GeM (Government E-Marketplace);
E-procurement.
Implementation of MSME policy and procurement from MSME vendors.<br>
slide5. CORPORATE OFFICE, DELHI
Procurement of Goods & Services for Corporate office, Delhi.
Engagement of Consultants for new overseas acquisition projects.
Back up support to overseas offices on need basis.
Procurement is broadly governed by parent company policy & guidelines. PROCUREMENT ACTIVITIES IN A NUTSHELL OVERSEAS NON - OPERATED/ JV PROJECTS
Procurement is conducted by the operator or JV Company.
Procurement is governed by host country policy guidelines and the underlined project agreements like PSC/CA/JOA etc. OVERSEAS OPERATED PROJECTS
Conducted from respective Country/ Project Office
Procurement of oilfield equipment, tools, machineries, spares and consumables and services for overseas operated projects.
Procurement is governed by ONGC Videsh policies in tandem with host country policy guidelines and the underlined project agreements like PSC/CA/JOA etc.<br>
slide6. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide7. POLICY FORMULATION - ONGC VIDESH Procurement policy formulated & reviewed centrally;
Standardised Tender/Contract Conditions and Evaluation Methodologies;
Constantly reviewed for simplification and elimination of operational difficulties, transparency, equity and improvement of tender process and contract execution, based on:
Directives from Govt. / Statutory Govt. agencies;
Feedback from Vendors (Interactive Meet with Business Partners, Pre Bid Conferences);
Internal feedback.
Customized procedure in ONGC Videsh for specific business requirement:
Procurement for Overseas Operated Projects;
Hiring of Consultants for Business Development (acquisition of overseas oil & gas assets).<br>
slide8. TENDERING CYCLE 1. NIT / Tender
publishing 2. Receipt of queries
from bidders 3. Pre Bid meeting 4. Corrigendum
(as per requirement) 5. Bid Submission 6. Technical Bid
Opening 12. Delivery, Payment and Post Contract Mgmt. 11. Award of
Contract 10. Price Bid
Opening 9. Shortlisting of
bidders 8. Clarifications (if any) from bidders 7. Technical Bid
evaluation<br>
slide9. TENDER DOCUMENT Tender documents consist of:
Instruction to Bidders (ITB)
General Conditions of Contracts (GCC)
Scope of work & Special conditions of contract
Price format
Bid Evaluation Criteria
Bid Evaluation Criteria (BEC)
Formulated prior to invitation of tender
Forms part of Bidding document
Contents of BEC
Technical qualification /eligibility criteria
Commercial criteria
Financial Criteria (for tender value more than ₹10 Crores(annualized) for Services/LSTK and ₹25 Crores for Goods).
Price evaluation criteria
Bid Evaluation
Offers evaluated strictly as per BEC and Tender conditions<br>
slide10. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide11. PROCUREMENT – CORPORATE OFFICE Types of tender:
Open Tender.
Limited Tender.
Single Tender: OEM/OES, Spares, Nomination/PAC basis.
Board Purchase: To meet urgent requirement or where specifications are not firmed up.
Type of Bidding:
‘Two Bid’ System: valuing above ₹ 5 Lakhs.
‘Single Bid’ System: valuing below ₹ 5 Lakhs
Procurement Strategies:
Goods & Services - Specific requirement / One time purchase.
Annual Rate Contracts.
Empanelment of Consultants.<br>
slide12. GOODS
G&G Hardware & Software
IT Equipment
Desktop/ Laptop
Printer and Printer Consumables
Telephone Instruments/Mobile Phones
Office Furniture
Office Stationery
Air Conditioners 12 GOODS AND SERVICES PROCURED FOR CORPORATE OFFICE SERVICES
Consultancy Services
Legal & Tax Services
Housekeeping
Catering
Logistics
IT Related Services
Maintenance Services
Security
Treasury related services
Foreign Exchange Service
Travel Related Services
Translation Services<br>
slide13. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide14. PROCUREMENT AT OVERSEAS OPERATED PROJECTS Tenders are invited / finalized in respective countries;
Tender conditions include of local/host country legal / tax guidelines;
Generally, Limited / Open (valuing > USD 500,000) Tenders are invited depending on tender value;
In Limited Tenders, bidders are shortlisted based on Pre Qualification Criteria (PQC);
Tenders / PQC is published on ONGC Videsh website for Limited/Open Tenders;
In case of Limited Tender, request of the interested bidders is evaluated based on PQC and if qualified, tender is issued;
Procedure for procurement for overseas requirement incorporating specific features like non-requirement of EMD, shorter bid validity (45 days) and tender turn around times etc.<br>
slide15. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide16. 16 HIRING OF CONSULTANTS FOR BUSINESS DEVELOPMENT Pursuing opportunity for acreage/acquisition of overseas Oil & Gas assets, requires engagement of external consultants (on need basis) as under:
Technical Consultant
Legal Consultant
Financial Consultant (Merchant Bankers)
Tax & Accounting Consultant
Fast track and concise process for timely engagement of external consultants – window of opportunity is generally very small
Separate procedure adopted for hiring of consultants with no requirement of EMD, SD.
Limited tender is invited (through e-mail) from empanelled list of consultants
Prices sought are as under:
For Technical, Legal and Tax & Accounting Consultants
Hourly rates for the professionals
Cap on Fee
Cap on OPE (Out of Pocket Expenses)
For Financial Consultant
Lumpsum success fee
Cap on OPE<br>
slide17. 17 HIRING OF CONSULTANTS FOR BUSINESS DEVELOPMENT Basis of empanelment (current) of Consultants for BD opportunities
Financial Consultants
Top 12 merchant bankers as per the Bloomberg rankings based on value of Oil & Gas completed deals and having completed minimum 5 deals during the calendar year 2017;
The list excludes 05 bankers/consultants (from the Top 12 rankings) who did not submit their bid in last three (3) consecutive occasions against the RFPs invited by ONGC Videsh and in their place, includes same number of merchant bankers meeting the criteria mentioned above.
Legal Consultants
International Law Firms in Band 1 list of Chambers & Partners and firms who have worked satisfactorily with ONGC Videsh during the past 5 years (and are also in Band 2 or Band 3 of Chambers & Partners);
All Indian law firms in Band 1 in Chambers & Partners.
Tax & Accounting Consultants
Big Four consultants in the domain.
Technical Consultants
Through EOI exercise and based on present selection criteria like experience, personnel, regional dominance etc.
List of empanelled consultants available on ONGC Videsh website ongcvidesh.com/tenders<br>
slide18. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide19. KEY INITIATIVES New Territories (Avant-Garde):
Procurement through GeM (Government E-Marketplace).
E-procurement through Central Public Procurement Portal (CPPP).
Implementation of MSME policy for procurement of Goods & Services (with special focus on procurement from SC/ST MSME vendors).
Transparency and Vendor support:
NIT/Tender documents available on ongcvidesh.com/tenders and eprocure.gov.in.
Information on procurement through Single (Nomination) tenders available on ongcvidesh.com/tenders
Integrity Pact (IP) (based on Transparency International) for tenders valuing above
₹1 Crore.
Dispute Resolution Mechanisms viz. IEM, Conciliation, Arbitration etc.
Opening of tenders in presence of bidders’ representatives.
Periodic audits by external and internal agencies.<br>
slide20. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide21. AWARENESS - PROCUREMENT PROCESS Cause of Common errors by the bidders
Not meticulously following the instructions outlined in the tender document;
Non participation in Pre-bid Conferences;
Non serious approach while submission of offers leading to large number of clarifications.
Common deficiencies in bids / offers / contracts
Non-submission of Bid Bond (Bank Guarantee) in correct format and sometimes, not mentioning the Bid reference number in the BG;
Non-filling / partial filling of Bid Matrix and various tender forms;
Non-submission of copy of blank Price-bids with Technical bid. No tick marks provided against the price columns;
Disclosing prices in Techno-Commercial Bid and during the bid clarification;
In case of MSME exemption, non-submission of correct/relevant registration certificate;
Non-submission of undertakings / declarations as per BEC;<br>
slide22. AWARENESS - PROCUREMENT PROCESS Common deficiencies in bids / offers (contd…)
Not indicating applicable tax rates;
Deviations taken to Price format - ‘Notes’ are deleted or changed or additional notes and/or assumptions added;
Non-submission / Insufficiency of documentary evidence towards BEC experience criteria;
Submission of unsolicited documents making the bid voluminous and creating ambiguity in evaluation of bid;
Deviations to important tender conditions viz. Warranty, Payment Terms, Delivery / Mobilization Period etc.;
Clarifications / deficient documents submitted are not as per requirement;
Delay in submission of Security Deposit, also submission of Performance Bank Guarantee in incorrect format with no or incorrect reference of contract number;
Not signing all the pages of the Integrity Pact as per the proforma.<br>
slide23. AWARENESS - PROCUREMENT PROCESS Major expectations from vendors
Avoid request for extension in Tender due dates.
Submission of complete and clear bid.
Timely submission of Security deposit/PBG and signing of the contract.
Timely completion of supplies / contract.
Submission of complete documents for payment.
Avoid unfair practices.<br>
slide24. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide25. CONCLUSION ONGC Videsh and Business Partners are in symbiotic relationship, we need each other to exist and grow in Win-Win Situation.
Interactive meets are way forward to strengthen business relationships with mutual trust.
ONGC Videsh is committed to transparency in all its dealings.
ONGC Videsh team available for resolution of all issues from Business Partners.
Together we can cut down delays in tendering process and execution of contracts.<br>
slide26. Thank You For any query, information or suggestions, you may contact
Head Commercial
ONGC Videsh Limited,
3RD Floor, B wing, Deendayal Urja Bhawan,
5 Nelson Mandela Marg, Vasant Kunj,
Delhi -110070
Contact No. +91-11-26753308
Fax No. +91-11-26129345/46<br>
slide2. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide3. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide4. OBJECTIVES OF THIS PRESENTATION For understanding of business partners of ONGC Videsh.
To use the Website as a platform for suggestions/feedback from business partners.
Awareness for business partners regarding,
Tendering process of ONGC Videsh;
ONGC Videsh’s expectations from bidders and contractors;
Elimination of common errors noticed in bids and during execution of Orders/Contracts.
Familiarization of the business partners with key procurement initiatives, viz.
Purchase through GeM (Government E-Marketplace);
E-procurement.
Implementation of MSME policy and procurement from MSME vendors.<br>
slide5. CORPORATE OFFICE, DELHI
Procurement of Goods & Services for Corporate office, Delhi.
Engagement of Consultants for new overseas acquisition projects.
Back up support to overseas offices on need basis.
Procurement is broadly governed by parent company policy & guidelines. PROCUREMENT ACTIVITIES IN A NUTSHELL OVERSEAS NON - OPERATED/ JV PROJECTS
Procurement is conducted by the operator or JV Company.
Procurement is governed by host country policy guidelines and the underlined project agreements like PSC/CA/JOA etc. OVERSEAS OPERATED PROJECTS
Conducted from respective Country/ Project Office
Procurement of oilfield equipment, tools, machineries, spares and consumables and services for overseas operated projects.
Procurement is governed by ONGC Videsh policies in tandem with host country policy guidelines and the underlined project agreements like PSC/CA/JOA etc.<br>
slide6. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide7. POLICY FORMULATION - ONGC VIDESH Procurement policy formulated & reviewed centrally;
Standardised Tender/Contract Conditions and Evaluation Methodologies;
Constantly reviewed for simplification and elimination of operational difficulties, transparency, equity and improvement of tender process and contract execution, based on:
Directives from Govt. / Statutory Govt. agencies;
Feedback from Vendors (Interactive Meet with Business Partners, Pre Bid Conferences);
Internal feedback.
Customized procedure in ONGC Videsh for specific business requirement:
Procurement for Overseas Operated Projects;
Hiring of Consultants for Business Development (acquisition of overseas oil & gas assets).<br>
slide8. TENDERING CYCLE 1. NIT / Tender
publishing 2. Receipt of queries
from bidders 3. Pre Bid meeting 4. Corrigendum
(as per requirement) 5. Bid Submission 6. Technical Bid
Opening 12. Delivery, Payment and Post Contract Mgmt. 11. Award of
Contract 10. Price Bid
Opening 9. Shortlisting of
bidders 8. Clarifications (if any) from bidders 7. Technical Bid
evaluation<br>
slide9. TENDER DOCUMENT Tender documents consist of:
Instruction to Bidders (ITB)
General Conditions of Contracts (GCC)
Scope of work & Special conditions of contract
Price format
Bid Evaluation Criteria
Bid Evaluation Criteria (BEC)
Formulated prior to invitation of tender
Forms part of Bidding document
Contents of BEC
Technical qualification /eligibility criteria
Commercial criteria
Financial Criteria (for tender value more than ₹10 Crores(annualized) for Services/LSTK and ₹25 Crores for Goods).
Price evaluation criteria
Bid Evaluation
Offers evaluated strictly as per BEC and Tender conditions<br>
slide10. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide11. PROCUREMENT – CORPORATE OFFICE Types of tender:
Open Tender.
Limited Tender.
Single Tender: OEM/OES, Spares, Nomination/PAC basis.
Board Purchase: To meet urgent requirement or where specifications are not firmed up.
Type of Bidding:
‘Two Bid’ System: valuing above ₹ 5 Lakhs.
‘Single Bid’ System: valuing below ₹ 5 Lakhs
Procurement Strategies:
Goods & Services - Specific requirement / One time purchase.
Annual Rate Contracts.
Empanelment of Consultants.<br>
slide12. GOODS
G&G Hardware & Software
IT Equipment
Desktop/ Laptop
Printer and Printer Consumables
Telephone Instruments/Mobile Phones
Office Furniture
Office Stationery
Air Conditioners 12 GOODS AND SERVICES PROCURED FOR CORPORATE OFFICE SERVICES
Consultancy Services
Legal & Tax Services
Housekeeping
Catering
Logistics
IT Related Services
Maintenance Services
Security
Treasury related services
Foreign Exchange Service
Travel Related Services
Translation Services<br>
slide13. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide14. PROCUREMENT AT OVERSEAS OPERATED PROJECTS Tenders are invited / finalized in respective countries;
Tender conditions include of local/host country legal / tax guidelines;
Generally, Limited / Open (valuing > USD 500,000) Tenders are invited depending on tender value;
In Limited Tenders, bidders are shortlisted based on Pre Qualification Criteria (PQC);
Tenders / PQC is published on ONGC Videsh website for Limited/Open Tenders;
In case of Limited Tender, request of the interested bidders is evaluated based on PQC and if qualified, tender is issued;
Procedure for procurement for overseas requirement incorporating specific features like non-requirement of EMD, shorter bid validity (45 days) and tender turn around times etc.<br>
slide15. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide16. 16 HIRING OF CONSULTANTS FOR BUSINESS DEVELOPMENT Pursuing opportunity for acreage/acquisition of overseas Oil & Gas assets, requires engagement of external consultants (on need basis) as under:
Technical Consultant
Legal Consultant
Financial Consultant (Merchant Bankers)
Tax & Accounting Consultant
Fast track and concise process for timely engagement of external consultants – window of opportunity is generally very small
Separate procedure adopted for hiring of consultants with no requirement of EMD, SD.
Limited tender is invited (through e-mail) from empanelled list of consultants
Prices sought are as under:
For Technical, Legal and Tax & Accounting Consultants
Hourly rates for the professionals
Cap on Fee
Cap on OPE (Out of Pocket Expenses)
For Financial Consultant
Lumpsum success fee
Cap on OPE<br>
slide17. 17 HIRING OF CONSULTANTS FOR BUSINESS DEVELOPMENT Basis of empanelment (current) of Consultants for BD opportunities
Financial Consultants
Top 12 merchant bankers as per the Bloomberg rankings based on value of Oil & Gas completed deals and having completed minimum 5 deals during the calendar year 2017;
The list excludes 05 bankers/consultants (from the Top 12 rankings) who did not submit their bid in last three (3) consecutive occasions against the RFPs invited by ONGC Videsh and in their place, includes same number of merchant bankers meeting the criteria mentioned above.
Legal Consultants
International Law Firms in Band 1 list of Chambers & Partners and firms who have worked satisfactorily with ONGC Videsh during the past 5 years (and are also in Band 2 or Band 3 of Chambers & Partners);
All Indian law firms in Band 1 in Chambers & Partners.
Tax & Accounting Consultants
Big Four consultants in the domain.
Technical Consultants
Through EOI exercise and based on present selection criteria like experience, personnel, regional dominance etc.
List of empanelled consultants available on ONGC Videsh website ongcvidesh.com/tenders<br>
slide18. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide19. KEY INITIATIVES New Territories (Avant-Garde):
Procurement through GeM (Government E-Marketplace).
E-procurement through Central Public Procurement Portal (CPPP).
Implementation of MSME policy for procurement of Goods & Services (with special focus on procurement from SC/ST MSME vendors).
Transparency and Vendor support:
NIT/Tender documents available on ongcvidesh.com/tenders and eprocure.gov.in.
Information on procurement through Single (Nomination) tenders available on ongcvidesh.com/tenders
Integrity Pact (IP) (based on Transparency International) for tenders valuing above
₹1 Crore.
Dispute Resolution Mechanisms viz. IEM, Conciliation, Arbitration etc.
Opening of tenders in presence of bidders’ representatives.
Periodic audits by external and internal agencies.<br>
slide20. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide21. AWARENESS - PROCUREMENT PROCESS Cause of Common errors by the bidders
Not meticulously following the instructions outlined in the tender document;
Non participation in Pre-bid Conferences;
Non serious approach while submission of offers leading to large number of clarifications.
Common deficiencies in bids / offers / contracts
Non-submission of Bid Bond (Bank Guarantee) in correct format and sometimes, not mentioning the Bid reference number in the BG;
Non-filling / partial filling of Bid Matrix and various tender forms;
Non-submission of copy of blank Price-bids with Technical bid. No tick marks provided against the price columns;
Disclosing prices in Techno-Commercial Bid and during the bid clarification;
In case of MSME exemption, non-submission of correct/relevant registration certificate;
Non-submission of undertakings / declarations as per BEC;<br>
slide22. AWARENESS - PROCUREMENT PROCESS Common deficiencies in bids / offers (contd…)
Not indicating applicable tax rates;
Deviations taken to Price format - ‘Notes’ are deleted or changed or additional notes and/or assumptions added;
Non-submission / Insufficiency of documentary evidence towards BEC experience criteria;
Submission of unsolicited documents making the bid voluminous and creating ambiguity in evaluation of bid;
Deviations to important tender conditions viz. Warranty, Payment Terms, Delivery / Mobilization Period etc.;
Clarifications / deficient documents submitted are not as per requirement;
Delay in submission of Security Deposit, also submission of Performance Bank Guarantee in incorrect format with no or incorrect reference of contract number;
Not signing all the pages of the Integrity Pact as per the proforma.<br>
slide23. AWARENESS - PROCUREMENT PROCESS Major expectations from vendors
Avoid request for extension in Tender due dates.
Submission of complete and clear bid.
Timely submission of Security deposit/PBG and signing of the contract.
Timely completion of supplies / contract.
Submission of complete documents for payment.
Avoid unfair practices.<br>
slide24. AGENDA Introduction and Objectives Policy formulation – ONGC Videsh Procurement – Corporate office Procurement – Overseas offices Procurement – BD activities Key Initiatives Awareness to Procurement process Conclusion<br>
slide25. CONCLUSION ONGC Videsh and Business Partners are in symbiotic relationship, we need each other to exist and grow in Win-Win Situation.
Interactive meets are way forward to strengthen business relationships with mutual trust.
ONGC Videsh is committed to transparency in all its dealings.
ONGC Videsh team available for resolution of all issues from Business Partners.
Together we can cut down delays in tendering process and execution of contracts.<br>
slide26. Thank You For any query, information or suggestions, you may contact
Head Commercial
ONGC Videsh Limited,
3RD Floor, B wing, Deendayal Urja Bhawan,
5 Nelson Mandela Marg, Vasant Kunj,
Delhi -110070
Contact No. +91-11-26753308
Fax No. +91-11-26129345/46<br>