KENYA PIPELINE COMPANY LIMITED EPC TENDER FOR THE

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KENYA PIPELINE COMPANY LIMITED

EPC TENDER FOR THE REPLACEMENT OF 15KM

OF 14-INCH WHITE PETROLEUM PRODUCT

PIPELINE FROM KILOMETER MARKER NO. 38-

43(SAMBURU AREA) & 390-400(KONZA AREA)

CONTRACT NO. KPC/PU/047 – OT/18 – 19

MARCH 2019

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TABLE OF CONTENTS

SECTION I - INVITATION TO TENDER .............................................................. 1

SECTION II - BACKGROUND AND PRELIMINARY INFORMATION .................... 3

BACKGROUND ................................................................................................ 3

PRELIMINARY INFORMATION ......................................................................... 3

SECTION III - INSTRUCTIONS TO TENDERERS GENERAL ................................... 4

PREPARATION OF TENDERS ............................................................................ 7

SUBMSSION OF TENDERS. ............................................................................. 10

TENDER OPENING AND EVALUATION ...........................................................12

AWARD OF CONTRACT .................................................................................15

APPENDIX TO INSTRUCTIONS TO TENDERERS ...............................................17

SECTION V – FINANCIAL PROPOSAL .............................................................. 63

5.4 BILLS OF QUANTITIES ........................................................................... 68

5.5 SCHEDULE OF RATES ............................................................................... 76

5.6 LETTER OF NOTIFICATION OF AWARD ................................................ 78

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SECTION I - INVITATION TO TENDER

Tender No. KPC/PU/047 – OT/18 – 19

Tender Name: EPC TENDER FOR THE REPLACEMENT OF 15KM OF EXISTING 14-INCH

WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMETER MARKER

NO. 38-43(SAMBURU AREA) & 390-400(KONZA AREA)

1.1 Kenya Pipeline Company Limited invites tenders from eligible bidders for THE

ENGINEERING DESIGN, PROCUREMENT AND CONSTRUCTION (EPC),

TESTING AND COMMISSIONING OF A REPLACEMENT 14’’ (FOURTEEN

INCH) 15 KM OIL PIPELINE AT SAMBURU AND KONZA AREA.

1.2 Interested eligible candidates can view and download the documents from

the website www.kpc.co.ke at no cost. Bidders will be required to email

their detailed contact information to [email protected] for

recording, further clarifications and addenda. No other email addresses

should be used.

1.3 Mandatory requirements are as given below, these shall be placed in a separate

and sealed envelope: -

i. Certificate of Incorporation of the company/business registration for both

foreign and local partner

ii. Valid KRA tax compliance certificate (for local/Kenyan firms)

iii. Tender Security of USD 10,000.00 issued by a reputable bank or insurance

company approved by The Public Procurement Regulatory Authority,

Kenya (PPRA) valid for 180 days from the date of tender opening

iv. Local firms Must Provide:

• Valid NCA 1 – Mechanical

• Valid NCA 1- Civil works

v. Certificate of Tenderer’s Site Visit

• The visit is scheduled for 27th March 2019 at 10.00am at Pump

Station No. 8 in Konza.

vi. Power of attorney duly signed

vii. Foreign tenderers must submit their bids in association with local firms.

The participation of a local firms shall be at least 40% of the contract

value. The firms must enter into a partnership agreement which may be

a Joint Venture, a Memorandum of Understanding (MOU) or any other

form of agreement signed by all the parties involved as per clause 3.2.2

of this tender document.

viii. Signed Declaration Form.

ix. Duly filled confidential business questionnaire and Litigation status

x. Bidders must paginate all their documents and initialize each page

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1.4 Prices quoted should be inclusive of all taxes and in United States Dollars (USD)

or/and Kenya Shillings and shall remain valid for 150 days from the closing date

of tender.

1.5 Completed tender documents are to be enclosed in plain sealed envelopes

marked with the Tender name and reference number and deposited in the

Tender Box at the ground floor at Kenpipe Plaza or addressed to:

The Managing Director,

Kenya Pipeline Company Limited,

Sekondi Rd, off Nanyuki Rd, Industrial Area

P. O. Box 73442–00200,

Nairobi, Kenya.

To be received on or before 10th April 2019

1.6 Tenders will be opened immediately thereafter in the presence of the tenderers

or their representatives who choose to attend at Kenpipe Plaza, Sekondi Rd, off

Nanyuki Rd, Industrial Area. All tenders received after the closing date set out in

paragraph 1.5 hereinabove shall not be considered and shall be returned to the

bidders.

1.7 In the event that there arises any conflict or contradiction between the public

advertisement of the tender and the tender document, the tender document

shall at all times prevail.

1.8 Tender documents are not transferable.

The General Manager (supply chain),

FOR: MANAGING DIRECTOR

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SECTION II - BACKGROUND AND PRELIMINARY INFORMATION

BACKGROUND

Kenya Pipeline Company (KPC) Limited was incorporated on 6th September 1973

under the Companies Act and started commercial operations in 1978. The Company is

100 percent owned by the Government of Kenya. The Company operates and

maintains a cross-country pipelines system of various sizes with the associated storage

and distribution facilities. The pipeline system currently consists of 450 km of Line 1 (14

inch) running from the port of Mombasa to Nairobi, 325 km of Line 2 (8 inch) from

Nairobi to Eldoret, 324 km of Line 4 (14 inch) from Nairobi to Eldoret, 121 km of Line

3 (6 inch) from Sinendet to Kisumu (off Line II), 121km of line 6 running from Sinendet

to Kisumu. The company is set to commission a 20inch line 5 that will run from

Mombasa to Nairobi. This will bring to a total of 1,791 km of pipeline that shall be

operated. KPC also owns and operates several pumping stations and depots between

the above mentioned stations. The depots are located at Kipevu (PS 14), Moi

International Airport (PS12), Embakasi (PS9), Nairobi Terminal (PS10), Nakuru (PS25),

Eldoret (PS27) and Kisumu (PS28). In addition, the company operates common-user

road and rail tanker loading facilities at Nakuru, Eldoret and Kisumu.

Line 1 had a design life of approximately 25 years. Its replacement was due in 2003,

however, due to effective maintenance its life was elongated by close to 14 years.

PRELIMINARY INFORMATION

KPC wishes to replace the 15km of the badly worn out portion of the line 1 that stretches

from KPC marker Post KM 38-43 (Samburu Area) & 390-400 (Konza area). The portion

intended for replacement is currently in use and is delivering approximately 800m3/hr.

of white petroleum product i.e. Automotive Gas Oil, Motor spirit Premium and Dual

Purpose Kerosene.

The existing 14-inch Line 1 was constructed and commissioned in 1978 with envisaged

design life of 25 years after system commissioning. The pipes were manufactured

through ERW method of production using carbon steel grade to API 5L X52

specifications with assorted pipe nominal wall thickness of 12.7mm at pump discharge,

8.74mm, 7.92mm, 7.14mm and 6.35mm for other areas. About 80% of the total

stretch of the pipeline from Mombasa to Nairobi, measuring approximately 450KM,

had a nominal wall thickness of 6.35mm.

The pipeline was coated with coal tar enamel as a primary source of corrosion

protection. Additionally, the pipeline was installed with impressed current as a

secondary means of Cathodic Protection. Over the years the efficiency of these

installations have waned resulting to under protection of the pipeline thus leading to

severe corrosion damage of the pipeline. The internal body of the pipeline is protected

through regular dosing of the corrosion inhibitor.

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SECTION III - INSTRUCTIONS TO TENDERERS GENERAL

3.1 Definitions

(a) “Tenderer” means any person or persons, partnership, Joint venture,

consortium or company submitting a tender for the project acting directly

or through a legally appointed representative

(b) “Accepted tenderer” means the tenderer who is approved by KPC

(c) “Procuring entity” means Kenya Pipeline Company (KPC) Limited

(d) KPC” means Kenya Pipeline Co. Ltd (KPC)

(e) “PPRA” means Public Procurement Regulatory Authority formally known

as “PPOA” Public Procurement Oversight Authority.

(f) “NCA” means National Construction Authority

3.2 Eligibility and qualification of tenderers

3.2.1 To be eligible and qualified the tenderer shall provide evidence satisfactory to

KPC of its eligibility, capability and adequacy of resources to effectively perform

the subject contract. To this end, the tenderer shall be required to submit a

“technical proposal” which will include the following information.

i. Details of experience and past performance of works of similar nature as per

clause 3.26.1 herein.

ii. The qualifications and experience of key personnel proposed for

administration and execution of the contract both on and off site.

iii. Major items of construction plant and equipment proposed for use in the

performance of the contract.

iv. Details of subcontractors to whom it is proposed to sub-contract any portion

of the contract and for whom authority will be required for such

subcontracting in accordance with the conditions of contract.

v. A draft programme of works in the form of a Gantt chart which shall form

part of the contract if the tender is accepted. Any change in the

programme or schedule shall be subject to the approval of KPC.

vi. Details of any current litigation or arbitration proceedings in which the

tenderer is involved as one of the parties.

vii. Financial capability as detailed in the Technical Evaluation criteria

3.2.2 Joint Venture/MOU/Local Partnership Agreement

Tenders submitted by two or more firms shall comply with the following

requirements;

i. The tender and in case of a successful tender, contract form shall be signed

so as to be legally binding on all parties.

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ii. One of the parties shall be nominated as being lead contractor, and this

authorization shall be evidenced by submitting a power of attorney

signed by legally authorized signatories of all the parties.

iii. The lead contractor shall be authorized to incur liability and receive

instructions for and on behalf of any and all the parties and the entire

execution of the contract including payment shall be done exclusively

with the lead contractor.

iv. All parties shall be liable jointly and severally for the execution of the

contract in accordance with the contract terms, and a relevant statement

to this effect shall be included in the authorization mentioned in (b) above

as well as in the form of tender and the contract form (in case of the

accepted tender).

v. A copy of the contract entered into by all the parties shall be submitted

with the tender.

vi. Foreign tenderers must submit their bids in association with local firms.

The purpose is to ensure sustainable promotion of local industry. The

participation for local firms shall be at least 40% of the contract value.

The local partnership agreement may be a Joint Venture, a Memorandum

of Understanding (MOU) or any other form of agreement signed by all

the parties involved.

• The local partner of the tenderer shall provide all the

mandatory requirements/information as per details provided

under the INSTRUCTION TO TENDERERS- except the tender

security which shall only be provided by one firm.

3.2.3 Kenya Pipeline Company employees, committee members, board members and

their relatives (spouse and children) are not eligible to participate in the tender.

3.2.4 A tenderer who gives false information in the tender document about its

qualification or who refuses to enter into a contract after notification of contract

award shall be disqualified and /or recommended for debarment from

participating in future public procurement.

3.3 Cost of tendering

3.3.1 The tenderer shall bear all costs associated with the preparation and submission

of its tender and KPC will in no case be liable for those costs, regardless of the

conduct or outcome of the tendering process.

3.3.2 KPC shall allow the tenderer to view the tender document free of charge before

purchase.

3.4 Site Visit is Scheduled for 27th March 2019 at 10 am at. Pump Station No. 8 in Konza.

3.4.1 A representative of KPC will be available to meet the visiting tenderers at the

site. Tenderers must provide their own transport and PPE (Personal Protective

Equipment) where required.

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3.4.2 The tenderers must visit and examine the site and its surrounding and obtain for

themselves on their own cost and responsibility all information that may be

necessary for preparing the tender and entering into a contract. KPC shall

organize a site visit at a date to be notified. A representative of KPC will be

available to meet the visiting tenderers. Tenderers must provide their own

transport.

3.4.3 The tenderers and any of their personnel or agent will be granted permission by

KPC to enter upon premises and lands for the purpose of such inspection, but

only upon the express condition that the tenderer, its personnel or agents, will

release and indemnify KPC from and against all liability in respect of and will be

responsible for personal injury (whether fatal or otherwise), loss of or damage

to property and any other loss, damage, costs and expenses however caused,

which but for the exercise of such permission, would not have arisen.

3.4.4 The representative will not be available at any other time for site inspection visits

other than the stated date and time announced to the bidders

3.5 Contents of tender document

This document constitutes the complete tender for this project.

3.5.1 The tenderer is expected to examine carefully all instructions, conditions, forms,

terms specifications and drawings in the tender documents. Failure to comply

with the requirements for tender submission will be at the tenderer’s risk.

Pursuant to clause 3.23 of Instructions to tenderers, tenders which are not

substantially responsive to the requirements of the tender documents will be

rejected.

3.5.2 All recipients of documents for the proposed contract for the purpose of

submitting a tender (whether they submit a tender or not) shall treat the details

of the documents as “private and confidential”.

3.6 Inquiries by tenderers

3.6.1 A tenderer making an inquiry relating to the tender documents may notify KPC

in writing by fax or email at KPC’s mailing address indicated in the invitation to

tender. KPC will respond in writing to any request for clarification which is

received earlier than 7 days prior to the deadline for the submission of tenders.

Written copies of KPC’s response (including the inquiry but without identifying

the source of the entity) will be sent to all respective tenderers who have

purchased the tender documents. If a candidate sends an inquiry after the stated

days, KPC shall have the option of responding to the inquiry and extension of

the date of submission of tenders or ignoring it.

3.6.2 The tender evaluation committee shall evaluate the tender within 15 days from

the date of opening the tender.

3.6.3 KPC shall reply to any clarifications sought by the tenderer within 3 working

days of receiving the request to enable the tenderer to make timely submission

of its tender, provided that Clause 3.6.1 hereinabove shall apply

3.7 Amendment of tender documents

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3.7.1 At any time prior to the deadline for submission of tenders KPC may, for any

reason, whether at its own initiative or in response to a clarification requested

by a prospective tenderer, modify the tender documents by issuing Addenda

3.7.2 Any Addendum will be notified in writing or by cable, telex or facsimile to all

prospective tenderers who have purchased the tender documents and will be

binding upon them.

3.7.3 In order to allow prospective tenderers reasonable time in which to take the

Addendum into account in preparing their tenders, the employer may, at its

discretion, extend the deadline for the submission of tenders.

PREPARATION OF TENDERS

3.8 Language of tender

3.8.1 The tender and all correspondence and documents relating to the tender

exchanged between the tenderer and KPC shall be written in the English

language. Supporting documents which are printed literature furnished by the

tenderer with the tender may be in another language provided they are

accompanied by an appropriate translation of pertinent passages in the above

stated language. For the purpose of interpretation of the tender, the English

language shall prevail.

3.9. Documents comprising the tender

3.9.1 The Forms, Bills of Quantities and Schedules submitted with the tender

documents shall be used without exception (subject to extensions of the

schedules in the same format and to the provisions of clause 3.13.2 regarding the

alternative forms of tender security).

3.10 Tender prices

3.10.1 All the insertions made by the tenderers shall be made in indelible INK and the

tenderer shall clearly form the figures. The relevant space in the Form of Tender

shall be completed accordingly without interlineations or erasures except those

necessary to correct errors made by the tenderer in which case the erasures and

interlineations shall be initialled by the person or persons signing the tender.

3.10.2 This is a fixed rate Lump Sum Contract. A price or rate shall be inserted by the

tenderer for every item in the Bills of Quantities whether the quantities are stated

or not, items against which no rate or price is entered by the tenderer will not

be paid for by KPC when executed and shall be deemed covered by the rates for

other items and prices in the Bills of Quantities.

The prices and unit rates in the Bills of Quantities are to be the full [all-inclusive]

value of the work described under the items, including all costs and expenses

which may be necessary and all general risks, liabilities and obligations set forth

or implied in the documents on which the tender is based. All duties and taxes

and other levies payable by the tenderer under the Contract or for any other

cause prior to the deadline for the submission of tenders, shall be included in the

rates and prices and the total tender prices submitted by the Tenderer.

Each price or unit rate inserted in the Bills of Quantities should be a realistic

estimate for completing the activity or activities described under that particular

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item and the tenderer is advised against inserting a price or rate against any item

contrary to this instruction.

Every rate entered in the Bills of Quantities, whether or not such rate be

associated with quantity, shall form part of the Contract. KPC shall have the

right to call for any item of work contained in the Bills of Quantities, and such

items of work to be paid for at the rate entered by the tenderer and it is the

intention of KPC to take full advantage of unbalanced low rates.

3.11 Currencies of tender and payment

3.11.1 Tenders shall be priced in US Dollars.

3.11.2 Tenderers are required to indicate in the Statement of Foreign Currency

Requirements, which forms part of the tender, the foreign currency required by

them.

Exchange rates

3.11.3 The rate of exchange used for pricing the tender shall be the Central Bank of

Kenya (CBK) mean rate ruling on the date thirty (30) days before the final date

of submission of tenders.

3.11.4 Tenderers must enclose with their tenders, a brief justification of the foreign

currency requirements stated in their tenders.

3.12 Tender Validity

3.12.1 The tender shall remain valid and open for acceptance for a period of one

hundred and twenty (150) days from the specified date of tender opening or

from the extended date of tender opening (in accordance with clause 7.4 here

above) whichever is the latter.

3.12.2 In exceptional circumstances prior to expiry of the original tender validity

period, KPC may request the tenderer for a specified extension of the period of

validity. The request and the responses thereto shall be made in writing or by

cable, telex or facsimile. A tenderer may refuse the request without forfeiting

his Tender Surety. A tenderer agreeing to the request will not be required nor

permitted to modify his tender, but will be required to extend the validity of

his Tender Surety correspondingly

3.13 Tender Security

3.13.1 The tenderer shall furnish as part of his tender, a Tender Security in the amount

of USD 10,000.00 in the form of Bank Guarantee or Bid bond issued by a Bank

operating in Kenya or Insurance Company approved by PPRA.

3.13.2 The Tender Security shall be valid for at least thirty (30) days beyond the tender

validity period.

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3.13.3 Any tender not accompanied by an acceptable Tender Security will be rejected

by KPC as non-responsive.

3.13.4 The Tender Securities of unsuccessful tenderers will be returned as promptly as

possible, but not later than twenty-eight (28) days after concluding the Contract

execution and after a Performance Security has been furnished by the successful

tenderer. The tender security of the successful tenderer will be returned upon

the tenderer executing the Contract and furnishing the required Performance

Security.

3.13.5 The Tender Security may be forfeited:

(a) if a tenderer withdraws his tender during the period of tender validity; or

(b) in the case of a successful tenderer, if he fails

(i) to sign the Agreement, or

(ii) to furnish the necessary Performance Security

(c) if a tenderer does not accept the correction of his tender price pursuant

to clause 3.24.

3.14 No alternative offers

3.14.1 The tenderer shall submit an offer which complies fully with the requirements of

the tender documents unless otherwise provided for in the appendix. Only one

tender may be submitted by each tenderer either by himself, his subsidiary, or as

partner in a joint venture.

3.14.2 The tenderer shall not attach any conditions of his own to his tender. The tender

price must be based on the tender documents. The tenderer is not required to

present alternative construction options and he shall use without exception the

Bills of Quantities as provided, with the amendments as notified in tender

notices, if any, for the calculation of his tender price.

Any tenderer who fails to comply with this clause will be disqualified.

3.15 Pre-tender meeting

3.15.1 If a pre-tender meeting is convened the tenderers’ designated representative shall

be invited to attend at the venue and time stated in the Invitation to Tender.

The purpose of the meeting will be to clarify issues and to answer questions on

any matter that may be raised at that state.

3.15.2 The tenderer is requested as far as possible to submit any questions in writing or

by cable, to reach KPC not later than seven days before the meeting. It may not

be practicable at the meeting to answer questions received late, but questions

and responses will be transmitted in the following manner:

(a) Minutes of the meeting including the text of the questions raised and the

responses given together with any responses prepared after the meeting

will be transmitted without delay to all purchasers of the tender

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documents. Any modification of the tender documents listed in Clause

3.9 which may become necessary as a result of the pre-tender meeting

shall be made by KPC exclusively through the issue of an Addendum

pursuant to Clause 3.7 and not through the minutes of the pre-tender

meeting.

(b) Non-attendance at the pre-tender meeting will not be cause for

disqualification of a bidder.

3.16 Format and signing of tender

3.16.1 The tenderer shall prepare his tender as outlined in this tender document and

mark appropriately one set “ORIGINAL “and the other “COPY”.

3.16.2 The copy of the tender and Bills of Quantities shall be typed or written in

indelible ink and shall be signed by a person or persons duly authorized to sign

on behalf of the tenderer. All pages of the tender where amendments have been

made shall be initialled by the person or persons signing the tender.

3.16.3 The complete tender shall be without alterations, interlineations or erasures,

except as necessary to correct errors made by the tender, in which case such

corrections shall be initialled by the person or persons signing the tender.

SUBMSSION OF TENDERS.

This is a two-envelope tender

3.17 Sealing and marking of tenders

3.17.1 The tenderer shall seal the Mandatory documents, Technical Proposal and

Financial Proposal of the tender in separate envelopes duly marked mandatory,

technical proposal and financial proposal. The envelopes shall then be sealed in

an outer envelope.

a) The mandatory documents shall be as listed in the instruction to tender

(shall contain mandatory requirements for both the local and foreign

firm where firms enter into a partnership agreement) – the tender

security shall form part of the mandatory requirements

b) The Technical Proposal shall constitute the following documents

i) Tender Submission letter

ii) Tender Questionnaire

iii) Methodology for carrying out the assignment

iv) Financial capability

v) Schedule of Plant and Equipment

vi) Details of contracts of similar nature

vii) Schedule of on-going projects

viii) Key personnel with assigned tasks

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ix) Detailed signed CV’s of proposed technical staff

x) Litigation history

xi) Power of Attorney

xii) Details of sub-contractors

xiii) Declaration forms duly filled

xiv) Programme of works

xv) List of documents and reports to be submitted to the Client

c) The Financial Proposal shall constitute

i) Form of Tender

ii) Priced Bills of Quantities/Schedule of rates

3.17.2 The inner and outer envelopes shall be addressed to KPC at the address stated

in the Appendix to Instructions to Tenderers and bear the name and

identification of the Contract stated in the said Appendix with a warning not to

open before the date and time for opening of tenders stated in the said

Appendix.

3.17.3 The inner envelopes shall each indicate the name and address of the tenderer to

enable the tender to be returned unopened in case it is declared “late”, while

the outer envelope shall bear no mark indicating the identity of the tenderer.

3.17.4 If the outer envelope is not sealed and marked as instructed above, KPC will

assume no responsibility for the misplacement or premature opening of the

tender. A tender opened prematurely for this cause will be rejected by KPC and

return to the tenderer.

3.18 Deadline for submission of tenders

3.18.1Tenders must be received by KPC at the address and on the date and time

specified in the invitation to tender.

Tenders delivered by hand must be placed in the “tender box” provided in the

office of KPC.

Proof of posting will not be accepted as proof of delivery and any tender delivered

after the above stipulated time, from whatever cause arising will not be

considered.

Bulky tenders which cannot be placed in the tender box will be received by KPC

as indicated in the Appendix to instructions to tenders.

3.18.2 KPC may at its discretion, extend the deadline for the submission of tenders

through the issuance of an Addendum in accordance with clause 3.7, in which

case all rights and obligations of KPC and the tenderers previously subject to the

original deadline shall thereafter be subjected to the new deadline as extended.

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3.18.3 Any tender received by KPC after the prescribed deadline for submission of

tenders will be returned unopened to the tenderer.

3.19 Modification and withdrawal of tenders

3.19.1 The tenderer may modify or withdraw his tender after tender submission,

provided that written notice of the modification or withdrawal is received by KPC

prior to the prescribed deadline for submission of tenders.

3.19.2 The tenderer’s modification or withdrawal notice shall be prepared, sealed,

marked and dispatched in accordance with the provisions for the submission of

tenders, with the inner and outer envelopes additionally marked

“MODIFICATION” or “WITHDRAWAL” as appropriate.

3.19.3 No tender may be modified subsequent to the deadline for submission of tenders

3.19.4 No tender may be withdrawn in the interval between the deadline for

submission of tenders and the period of tender validity specified on the tender

form. Withdrawal of a tender during this interval will result in the forfeiture of

the Tender Surety.

3.19.5 Subsequent to the expiration of the period of tender validity prescribed by KPC,

and the tenderer having not been notified by KPC of the award of the Contract

or the tenderer does not intend to conform with the request of KPC to extend

the period of tender validity, the tenderer may withdraw his tender without risk

of forfeiture of the Tender Surety.

TENDER OPENING AND EVALUATION

3.20 Tender opening

3.20.1 KPC will open the tenders in the presence of the tenderer’s representatives who

choose to attend at the time and location indicated in the Invitation to Tender.

The tenderers’ representatives who are present shall sign a register evidencing

their attendance.

3.20.2 Tenders for which an acceptable notice of withdrawal has been submitted,

pursuant to clause 3.19 will not be opened.

3.20.3 KPC will examine the tenders to determine whether they are complete, whether

the requisite Tender Securities have been furnished, whether the documents have

been properly signed and whether the tenders are generally in order.

3.20.4 At the tender opening, KPC will announce the tenderer’s names, total tender

price, tender price modifications and tender withdrawals, if any, the presence of

the requisite Tender Security and such other details as KPC may consider

appropriate. No tender shall be rejected at the tender opening except for late

tenders.

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3.20.5 KPC shall prepare minutes of the tender opening including the information

disclosed to those present.

3.20.6 Tenders not opened and read out at tender opening shall not be considered

further for evaluation, irrespective of the circumstances. Any tender received

after the deadline for submission of tender shall be returned to the tenderer

unopened.

3.21 Process to be confidential

3.21.1 After the public opening of tenders, information relating to the examination,

clarification, evaluation and comparisons of tenders and recommendations

concerning the award of Contract shall not be disclosed to tenderers or other

persons not officially concerned with such process until the award of Contract is

announced.

3.21.2 Any effort by a tenderer to influence KPC in the process of examination,

evaluation and comparison of tenders and decisions concerning award of

Contract shall result in the rejection of the tenderer’s tender.

3.22 Clarification tenders

3.22.1 To assist in the examination, evaluation and comparison of tenders, KPC may

ask tenderers individually for clarification of their tenders, including

breakdown of unit prices. The request for clarification and the response shall

be in writing or by cable, facsimile or telex, but no change in the price or

substance of the tender shall be sought, offered or permitted except as required

to confirm the correction of arithmetical errors discovered by KPC during the

evaluation of the tenders in accordance with clause 3.24.

3.22.2 No Tenderer shall contact KPC on any matter relating to his tender from the

time of the tender opening to the time the Contract is awarded. If the tenderer

wishes to bring additional information to the notice of KPC, he shall do so in

writing.

3.23 Determination of responsiveness

3.23.1 Prior to the detailed evaluation of tenders, KPC will determine whether each

tender is substantially responsive to the requirements of the tender documents.

3.23.2 For the purpose of this clause, a substantially responsive tender is one which

conforms to all the terms, conditions and specifications of the tender documents

without material deviation or reservation. A material deviation or reservation is

one which affects in any substantial way the scope, quality, completion timing

or administration of the Works to be undertaken by the tenderer under the

Contract, or which limits in any substantial way inconsistent with the tender

documents, KPC’s rights or the tenderers obligations under the Contract and the

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rectification of which would affect unfairly the competitive position of other

tenderers who have presented substantially responsive tenders.

3.23.3 Each price or unit rate inserted in the Bills of Quantities shall be a realistic

estimate of the cost of completing the works described under the particular item

including allowance for overheads, profits and the like. Should a tender be

seriously unbalanced in relation to KPC’s estimate of the works to be performed

under any item or groups of items, the tender shall be deemed not responsive.

3.23.4 A tender determined to be not substantially responsive will be rejected by KPC

and may not subsequently be made responsive by correction of the non-

conforming deviation or reservation.

3.24 Correction of errors

i. KPC will evaluate Tenders determined to be substantially responsive to the

requirements of the tender document.

ii. There shall be no correction of errors

iii. The tender sum as submitted and read out during the tender opening shall

be absolute and final and shall not be subject of correction, adjustment or

amendment in any way by any person or entity

3.25 Conversion to single currency

3.25.1 For comparison of tenders, the tender price shall first be broken down into the

respective amounts payable in various currencies by using the selling rate or

rates of the Central Bank of Kenya ruling on the date thirty days (30) days

before the final date for the submission of tenders.

3.25.2 KPC will convert the amounts in various currencies in which the tender is

payable (excluding provisional sums but including Day works where priced

competitively) to Kenya Shillings at the selling rates stated in clause 3.25.1

3.26 Evaluation and comparison of tenders

3.26.1 KPC will evaluate only tenders determined to be substantially responsive to the

requirements of the tender documents in accordance with clause 3.23

3.26.2 If the lowest evaluated tender is seriously unbalanced and/or front loaded in

relation to KPC’s estimate of the items of work to be performed under the

Contract, KPC may require the tenderer to produce detailed price analyses for

any or all items of the bills of Quantities, to demonstrate the relationship

between those prices, proposed construction methods and schedules. After

evaluation of the price analyses, KPC may require that the amount of the

Performance Security set forth in clause 3.29 be increased at the expense of the

successful tenderer to a level sufficient to protect KPC against financial loss in

the event of subsequent default of the successful tenderer under the Contract.

Page 15

3.26.3 The tender evaluation committee shall evaluate the tender within 15 days of

the date of opening the tender.

3.26.4 KPC may at any time terminate procurement proceedings before award and

shall not be liable to any person for the termination.

3.26.5 KPC shall give prompt notice of the termination to the tenderers and on request

give its reasons for termination within 14 days of receiving the request from any

tenderer.

3.26.6 Persons not officially involved in the evaluation of tender shall not attempt in

any way to influence the evaluation.

3.26.7 Any person who has a conflict of interest with respect to the procurement shall

not participate in the procurement proceedings.

AWARD OF CONTRACT

3.27 Award

3.27.1 Subject to clause 3.27.2 KPC will award the Contract to the tenderer whose

tender is determined to be substantially responsive and is lowest bidder

evaluated.

3.27.2 KPC reserves the right to accept or reject any tender, and to annul the tendering

process and reject all tenders, at any time prior to award of Contract, without

thereby incurring any liability to the affected tenderers or any obligation to

inform the affected tenderers of the grounds for KPC’s action.

3.28 Notification of award and signing of the contract

3.28.1 Prior to the expiration of the period of tender validity prescribed by KPC, KPC

will notify the successful tenderer in writing that his tender has been accepted

and at the same time notify the unsuccessful tenderers that their tenders have

not been successful. This letter (hereinafter and in all Contract documents called

“Letter of Acceptance”) shall name the sum (hereinafter and in all Contract

3.28.2 Notification of award shall not constitute the formation of a Contract until the

parties sign a formal contract.

3.28.3 Within twenty-eight (28) days of receipt of the contract form from KPC, the

successful tenderer shall sign the form and return it to KPC together with the

required Performance Security.

3.28.4 The parties to the contract shall have it signed within 30 days from the date of

notification of contract award unless there is an administrative review request.

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3.29 Performance guarantee

3.29.1 Within Twenty-eight (28) days of receipt of the notification of award from

KPC, the successful tenderer shall furnish KPC with a Performance Security in an

amount stated in the Appendix to Instructions to Tenderers.

3.29.2 The Performance Security to be provided by the successful tenderer shall be an

unconditional Bank Guarantee issued at the tenderer’s option by an established

and a reputable Bank approved by KPC and located in the Republic of Kenya.

3.30 Advance payment

3.30.1 There shall be no advance payment in this project.

3.31 Corrupt or fraudulent practices

3.31.1 KPC requires that tenderers observe the highest standard of ethics during the

procurement process and execution of contract. A tenderer shall sign a

declaration that he has not and will not be involved in corrupt and fraudulent

practices.

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APPENDIX TO INSTRUCTIONS TO TENDERERS

Instructions to

Tenderers Reference

Particulars of Appendix to Instructions to Tenderers

Clause 3.2.2 The tenderer shall provide the following information

regarding this participation for the local partner:

• Full identity of the local firm.

• Certificate of Incorporation of the company/Business

Registration of the local firm.

• Valid KRA Tax Compliance Certificate of the local firm.

• Registration with National Construction Authority .The

local firms should provide NCA registration certificates as

detailed under clause 1.4 (iv) under the Mandatory

requirements -

• The local firm’s undertaking to abide by the Public

Procurement and Disposal Act, 2015 and the regulations

2006 thereto.

• A signed statement to confirm that the local firm is not

limited or disqualified under the provisions of The Public

Procurement and Disposal Act, 2015 and regulations, in

force in Kenya.

• Sections of the work to be executed by the local firm.

• The local firm’s relevant experience for the section of the

works assigned by the main contractor.

• The local firm’s financial capability. Attach audited

accounts for the last three years to demonstrate financial

capability for undertaking the project.

• The local firm’s availability of Human Resources. The

tenderer shall demonstrate availability of necessary staff

with adequate qualifications, capability and experience

to undertake the assignment. All the key personnel must

be able to effectively communicate in the English

language.

• The local firm’s availability of equipment. The local

partner shall submit a list of the major equipment

proposed for carrying out the assigned component of the

works, including details of ownership (if hired or owned

equipment).

Clause 3.17.2 Client’s address: -


Kenya Pipeline Company Limited,


P. O. Box 73442–00200,

Nairobi, Kenya.

Clause 3.18.1 Bulky tenders will be received at:

Kenpipe Plaza Tender box located at Ground Floor

Kenya Pipeline Company Limited HQ

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P. O. Box 73442–00200,

Nairobi, Kenya

Clause 3.29.1 Performance Guarantee shall be:

10 percent of the contract price

3.32 Technical Evaluation Criteria

KPC will carry out technical evaluations of the bids first, which shall be scored based on

the evaluation criteria given below. Only tenderer’s who garner at least 50% in each

of the eleven (11) evaluation criteria and attain an overall score of 75% shall qualify to

have their financial submissions opened and evaluated.

Bidders are therefore requested to carefully read the qualification criteria and furnish

authentic and complete information in response. KPC shall carry out due diligence to

ascertain the accuracy of the information provided.

Documentary evidence may be in the form of literature, drawings and data, diagrams,

photographs, catalogues, illustrations and any other information which is required for

evaluation purposes. Such information shall clearly illustrate the bidder’s ability to

undertake the project.

Item Criteria Max Score

1(a) Experience and Past Performance 20 max

The bidder shall provide reference letters and documentary proof

from their clients on the clients letter head of successful design

and construction of at least three cross country oil/gas pipeline in

an EPC contract during the last 15 years and this must be in EPC

(turnkey) project. Each pipeline shall be of minimum distance of

20 km and of any diameter ranging from 10” - 48” and to API 5L

specifications.

i. A bidder who provides evidence for one (1) project

successfully completed as described above shall earn 5

marks.

ii. A bidder who provides evidence for Two (2) projects


marks.

iii. A bidder who provides evidence for Three (3) projects


marks.

The documentary proof shall be in the form of Completion

Certificates from the clients and any other documentary evidence

showing that the pipeline met the above specifications and

diameter range and that the projects were carried out in an EPC

(turnkey approach).

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1(b) Experience in Design , Construction ,testing and commissioning

of Cathodic Protection systems for replaced pipeline

10 Max

The bidder shall provide reference letters and documentary proof

from their clients on the clients letter head of successful design

and construction of Cathodic Protection systems for at least three

cross country oil/gas for replaced segment of a pipeline during

the last 15 years. Each pipeline shall be of minimum distance of

20 km and of any diameter ranging from 10” - 48” and to API 5L

specifications.

iv. A bidder who provides evidence for one (1) project

successfully completed as described above shall earn 2.5

marks.

v. A bidder who provides evidence for Two (2) projects


marks.

vi. A bidder who provides evidence for Three (3) projects


marks.

The documentary proof shall be in the form of Completion

Certificates and any other documentary evidence from the client.

2 Pipeline System Design 10max

The bidder shall provide preliminary design for the proposed

pipeline system based on international recognizable standards

to meet the project objective. Bidders are to provide: -

a) Draft Hydraulic analysis based on Line 1 elevations provided

i) State software used (1 mark)

ii) Sample calculation on head loss (1 Mark)

iii) Determination of pipe wall thicknesses for the entire

segment of the line intended for replacement. The

tolerance for wall Thickness should meet criteria provided

under Table 9 of API specification 5L. (3marks)

iv) Draft Surge analysis report (2 marks)

b) Design and select suitable locations of Valve Chambers where

necessary. (3Marks )

3 Financial Capability 2 max

The bidder shall provide proof in form of certified audited

accounts for the last five (5) financial years

Turnover

i) A bidder who submits a combined turnover of less than US $

10 million will not be scored.

ii) A bidder who submits an average combined turnover of

equal or more than US $ 10 million for the last 5 years

(2marks)

4 Qualifications and Experience of Key Personnel 10 max

a) Project Manager – (2 Marks)

The bidder shall provide detailed curriculum vitae of the

proposed Project Manager who has designed and supervised

Page 20

the construction of Oil Pipelines. The candidate should be

Registered/Chartered Engineers or Engineers affiliated to

regulating body in country of origin and holders of a

Bachelor’s Degree in Mechanical, Civil, Petroleum Engineering

or equivalent. Minimum experience of 15 years

i) A bidder who provides staff with less than 10 years will

not be scored.

ii) A bidder who provides staff with 10 – 15 years will

score (1 marks)

iii) A bidder who provides staff with more than 15 years

will score (2 marks)

Documents to be submitted are: signed CV as a minimum

capturing key competence, projects handled highlighting similar

projects and signed by both candidate and the person with

power of attorney, Notarized copies of relevant degree

certificates and copies of certificates issued by the Engineers

regulatory bodies from the country of origin.

b) Health, Safety and Environment (HSE) Officer – (1

Mark)


proposed HSE staff with internationally recognized

certification and have at least 10 years’ experience in HSE

matters in the oil /gas pipeline construction. (Attach copies of

certificates)

i) 1 Mark shall be awarded to the person who meets this

requirement.

ii) No marks shall be awarded to a person without HSE

qualification.


capturing key competences, projects handled highlighting similar


power of attorney, Notarized copies of relevant certificates

c) Civil Engineer – (1 Marks)


proposed Civil Engineer, Registered/Chartered Engineer affiliated

to regulating body in country of origin. The Engineer shall be a

graduate with a Civil Engineering Degree with a minimum of 10

years’ experience with at least 8 years in the Oil and Gas industry.

i) A bidder who provides staff with above qualifications

but with less than 6 years will not be scored.

ii) A bidder who provides staff with that above

qualification with 7-10 years will score (½ mark)

iii) A bidder who provides staff with the above

qualifications and with more than 10 years will score

(1 marks)

Documents to be submitted are : signed CV as a minimum

capturing key competences ,projects handled highlighting similar

Page 21





d).Mechanical Engineer/Chemical Engineer (2 Marks)

The bidder shall provide a detailed curriculum vitae of the

proposed Mechanical/ Chemical Engineer, Registered/Chartered/

affiliated to regulating body in his country of origin. The Engineer

shall be a graduate with Bachelor’s Degree in Mechanical

Engineering or equivalent with a minimum of 10 years’

experience with at least 8 years in the Oil and Gas industry.

i) A bidder who provides staff with less than 6 years

will not be scored.

ii) A bidder who provides staff who meets the above

qualification but with 7-10 years will score (1 mark)

iii) A bidder who provides staff who meets the above

qualifications but with more than 10 years will score

(2 marks)







f). Electrical Engineer – (1 Mark)


proposed Electrical Engineer, Registered/Chartered Engineer or

Engineer affiliated to regulating body in country of origin. The

Engineer shall be a graduate with Bachelor’s Degree in Electrical

or its equivalent with a minimum of 8 years’ experience in

electrical installations.

i) A bidder who provides staff who meets the above

qualifications but with less than 6 years will not be

scored.

ii) A bidder who provides staff meets the above

qualification but with 6-8 years will score (1 mark)







g). Corrosion Control Engineer – (1 Mark)


Page 22

proposed Corrosion Control Engineer certified by NACE at level

CP 4 Specialist. The Engineer shall be a graduate with a minimum

of 8 years’ experience in Corrosion Control with at least 4 years’

experience in Oil and Gas Industry.

i) A bidder who provides staff with less than 6 years will

not be scored.

ii) A bidder who provides staff with 6-8 years will score

(1 mark)





certificates and copies of certificates issued by NACE.

h).QA/QC Engineer – (2 Mark)

The bidder shall a detailed curriculum vitae of the proposed

QA/QC personnel with minimum qualification of a diploma in

any Engineering discipline with certification in Non-destructive

testing (NDT). The personnel shall have a minimum of Level II

certification with minimum of 10 years’ experience. (Attach

copies of certificates).

i) A bidder who provides staff with minimum

qualifications but without NDT certification will not be

scored

ii) A bidder who provides staff with minimum

qualification and with the NDT certification will score

1 marks


capturing key competence, projects handled highlighting similar


power of attorney and copies of certificates issued for NDT

certification.

5 Construction Plant and Equipment 10 Max.

The bidder shall provide a schedule of plant and equipment

ownership in the format provided in the standard form

Key plants include: -

i) Side Booms at least 3No. (1 mark each)

ii) HDD equipment/or auger bore (1 mark)

iii) DC welding generators (minimum capacity 125 KVA) – at

least 6 No. (½ mark each)

iv) NDT equipment – at least 2 sets (1 mark)

v) Cranes with 25 Ton capacity – at least 2 No. (1 mark each)

vi) Excavators – at least 2 No. (2 mark each)

vii) Air Compressors of at least 600 CFM – 2 No. (2 mark

each)

viii) Holiday test equipment and pipe locator (2 marks)

(one mark for each)

ix) Any other equipment necessary (1 mark for bidders who

Page 23

list any other)

Bidders Must show proof of ownership. The documentary

evidence shall be Log Book , Purchase receipt , bill of lading of

the equipment , etc.

6 Methodology of work 10 Max.

The bidder shall provide a works methodology clearly indicating

the following activities: -

i) Pipeline system design. (1 mark)

ii) Hydrotest plan (2marks)

iii) Procurement Plan. (1 mark)

iv) Testing and commissioning Plan. (2 mark)

v) Quality Assurance and Quality control of Work Plan (2

mark)

vi) Job Safety Analysis (JSA) tailored for the project and

taking due consideration that there is an existing pipeline

that is aged. (1 mark)

vii) Road and River crossings. (1 mark)

Full score or zero marks shall be awarded depending on the

completeness of the submission.

7 Methodology for Tie-in of the New Pipeline to the existing Old

pipeline.

5 max.

Bidders shall be required to give a comprehensive acceptable

Methodology that shall be adopted to Tie-in the existing pipeline

to a new pipeline considering that the New Pipeline joined to the

old pipeline shall be piggable. The details to be captured shall

include but not limited to: Mechanical works, Product drain,

product storage at site, etc, In their submission bidders are

required to quote all the relevant and applicable international

standards and codes for this work and the safety measures that

shall apply under this circumstance e.g. API, ASME among others.

(Maximum 5 marks for comprehensive relevant procedure,

otherwise 0)

8 Methodology for Corrosion Control Works 4 max

Bidders shall be required to give a comprehensive acceptable

Methodology that shall be adopted for the design, procurement

and construction of an appropriate Cathodic Protection System

for the new Pipeline while taking into account of all structures

within vicinity as follows; -

- The new segment shall share the corridor with 20-inch API

5l x52 pipeline tagged as line 5 (constructed in year 2018)

and has a separate CP system

- The new Pipeline shall be enjoined to an old pipeline age

40 years. Its initial design life was 25 years.

- This shall be guided by the NACE RP 0169, NACE RP 0177

and any other relevant specification as provided for in this

project

(Score 4 marks for comprehensive and relevant procedure , otherwise

Page 24

0)

9 Environmental Impact Assessment (EIA) 5 max.

The bidder shall be required to undertake EIA study prior to

commencement of the works. The firm undertaking the exercise

shall possess a valid NEMA license. Firms/Experts undertaking the

study shall;

a) Be locally based (Based in Kenya)

b) Have adequate experience in EIA studies including

petroleum sector. The lead experts shall have the

following: -

i) 10 years’ experience in the field with at least 2 years

being in Petroleum Sector and with valid NEMA

practicing license (1 mark)

ii) Hazard assessment expert - 5 years in petroleum sector

and with Valid NEMA practising license

(1 mark)

iii) EIA Associate experts - 5 years with NEMA current

practicing license (1 marks)

iv) Present an adequate proposed methodology and work

plan (2 marks)

10 The client considers abandoning or removing the old pipeline

after decommissioning. The bidders shall be required to provide

draft proposal on the following: -

(a) . Provide a comprehensive methodology for

decommissioning the 14-inch API 5L x52 pipe

(b) . Provide a comprehensive draft proposal report on

abandonment of the pipeline including cost associated with

abandoning the 15 km of 14-inch API specification 5L pipeline

4marks

(c) . Provide a comprehensive draft proposal report on removal

of the pipeline and disposal of the same at a location to be

identified by the client. The report should include associated

cost including negative salvage value 4marks

(d) . An analysis report on Cost versus the Benefit of the two

method here-in-above i.e. (b) and (c).2 marks

Note Bidders

10 Marks

11 1 Bidders are expected to provide an acceptable program of

works capturing all critical activities on Procurement,

Engineering, construction, Test and commissioning of the

new replacement pipeline.

a) A bidder who completes the works in 10 months or

less scores 2 Marks (otherwise 0)

2 Bidders are expected to provide an acceptable program of

works capturing all critical activities on Decommissioning

the old pipeline

b) A bidder who complete the works in 2 months or less

4Max

Page 25

scores 2 Marks (otherwise 0)

Page 26

SECTION IV

4.1 CONDITIONS OF CONTRACT

Part I: General Conditions of Contract

The applicable Conditions of Contract shall be the General conditions forming part 1 of

the “Conditions of Contract for EPC/ Turnkey Projects, (First Edition, 1999) prepared

by the Federation Internationale des Ingenious – Conseils (FIDIC)”.

i. The conditions are subject to variations and additions set out in Part II thereof titled

Particular Conditions of Contract and in the Appendix to Form of Tender.

ii. The Particular Conditions take precedence over the General Conditions of Contract.

iii. Copies of the FIDIC Conditions of Contract can be obtained from:-

FIDIC Secretariate

P.O. Box 86

1000 Lausanne 12

Switzerland

Fax: 41 21 653 5432

Telephone 41 21 653 5003

Page 27

Part II: Particular Conditions of Contract

The Employer (Sub-clause 1.1.2.2)

The Employer is Kenya Pipeline Company Limited.

The Employer’s Representative (Sub-clause 1.1.2.4)

The Employer’s representative is the Maintenance Manager or his appointed

representative.

Commencement Date (Sub-clause 1.1.3.2)

The date for commencement of the Works is 14 days after Employer’s representative’s

instruction to commence.

Time for Completion (Sub-clause 1.1.3.3)

The Time for Completion at most should be 10 months.

Communications (Clause 1.3)

The system of communication shall be as defined under this clause including signed PDF

version.

Language and Law (Clause 1.4)

The version in English language (ruling language) shall prevail.

The Law governing the contract shall be Kenyan Law

Priority of documents (Clause 1.5)

As defined in the contract agreement.

Performance Security (Clause 4.2)

Within Twenty-eight (28) days of receipt of the notification of award from KPC, the

successful tenderer shall furnish KPC with a Performance Security in an amount stated

in the Appendix to Instructions to Tenderers.

Delay in Completion (Clause 8.7)

Failure to meet the Time for Completion entitles the Employer to reduction in Contract

Price as follows:

Amount per day is 0.1% of the contract sum.

Prolonged delay (Clause 8.7)

Page 28

Maximum amount recoverable from the EPC Contractor by the Employer is 10% of the

contract sum

Advanced Payment (Clause 14.2)

There shall be no advanced payment

Currencies of payment (Clause 14.15)

Payments shall be made in US Dollars and/or Kenya Shillings.

Rates of Exchange (Clause 14.15)

The rates of exchange for the purpose of the Contract are:

The prevailing exchange rates shall be the Central Bank of Kenya (CBK) mean rate 30

days before the final date for the submission of tenders.

Termination by Employer (Clause 15.2)

The Employer shall be entitled to terminate the Contract if the Contractor:

a) fails to comply with Sub-clause 4.2 [Performance Security] or with a notice under

Sub-clause 15 .1 [Notice to Correct],

b) abandons the Works or otherwise plainly demonstrates the intention not to

continue performance of his obligations under the Contract,

c) without reasonable excuse fails to proceed with the Works in accordance with

Clause 8 [Commencement, Delays and Suspension],

d) subcontracts the whole of the Works or assigns the Contract without the required

agreement,

e) (becomes bankrupt or insolvent, goes into liquidation, has a receiving or

administration order made against him, compounds with his creditors, or carries

on business under a receiver, trustee or manager for the benefit of his creditors,

or if any act is done or event occurs which (under applicable Laws) has a similar

effect to any of these acts or events, or

f) gives or offers to give (directly or indirectly) to any person any bribe, gift,

gratuity, commission or other thing of value, as an inducement or reward:

i. for doing or forbearing to do any action in relation to the Contract, or

ii. for showing or forbearing to show favour or disfavour to any person in relation

to the Contract,

iii.

or if any of the Contractor's Personnel, agents or Subcontractors gives or offers to give

(directly or indirectly) to any person any such inducement or reward as is described in

this sub-paragraph (9. However, lawful inducements and rewards to Contractor's

Personnel shall not entitle termination.

In any of these events or circumstances, the Employer may, upon giving 14 days' notice

to the Contractor, terminate the Contract and expel the Contractor from the Site.

Page 29

However, in the case of sub-paragraph (e) or (f), the Employer may by notice terminate

the Contract immediately.

The Employer's election to terminate the Contract shall not prejudice any other rights

of the Employer, under the Contract or otherwise.

The Contractor shall then leave the Site and deliver any required Goods, all Contractor's

Documents, and other design documents made by or for him, to the Employer.

However, the Contractor shall use his best efforts to comply immediately with any

reasonable instructions included in the notice;

(i) for the assignment of any sub- contract, and

(ii) for the protection of life or property or for the safety of the Works.

After termination, the Employer may complete the Works and/or arrange for any other

entities to do so. The Employer and these entities may then use any Goods, Contractor's

Documents and other design documents made by or on behalf of the Contractor.

The Employer shall then give notice that the Contractor's Equipment and Temporary

Works will be released to the Contractor at or near the Site. The Contractor shall

promptly arrange their removal, at the risk and cost of the Contractor. However, if by

this time the Contractor has failed to make a payment due to the Employer, these items

may be sold by the Employer in order to recover this payment. Any balance of the

proceeds shall then be paid to the Contractor.

Resolution of Disputes

KPC and the EPC Contractor shall make every effort to resolve, amicably by direct

informal negotiation, any disagreement or dispute arising between them under or in

connection with the contract.

If, after thirty (30) days from the commencement of such informal negotiations both

parties have been unable to resolve amicably a contract dispute, either party may

require adjudication in the High Court of Kenya.

Page 30

4.3 DESIGN BASIS MEMORANDUM

4.3.1 General

This section covers the extent of facilities to be provided under the project, site

conditions, the design and operating criteria to be met and the conditions to be

adopted in the detail design and engineering of the facilities.

The EPC Contractor shall be responsible for the detailed engineering design and,

procurement and construction of the works including the supply of labour, plant

and materials necessary to complete the construction of the 15km stretch. The

stretches are defined in the Title page of the Tender document.

The EPC Contractor shall, using this Design Basis Memorandum, develop and

submit to KPC a fully detailed programme of activities and time scales necessary

to carry out the works. The programme shall take full account of KPC’s pipeline

operations and shall exploit shutdowns/ windows in liaison with KPC especially

during connectivity to the existing line.

The EPC Contractor’s schedule and programme shall be submitted to KPC for

approval prior to carrying out any of the works.

The specifications given herein are for the EPC Contractor’s guidance regarding

the standards applicable to the works.

All materials, plant and other supplies to be provided in the Works shall be new,

and of the most recent or current model and incorporating all recent

improvements in design and materials.

The maximum design temperature for above ground piping and equipment shall

be 50°C. Minimum design temperature shall be 10°C.

The maximum and minimum design temperatures for the pipelines shall be 40°C

and 10°C respectively.

The relative humidity typically ranges from 32% (comfortable) to 98% (very

humid) over the course of the year, rarely dropping below 21% (dry) and

reaching as high as 100% (very humid).

4.3.2 Summary of Scope of Works

The main elements of the works shall include but not limited to the following: -

KM 38-43 & 390-400 Samburu and Konza respectively

i. Undertaking an Environmental and Social Impact Assessment (ESIA) Study

for the proposed pipeline route. The study must comply with the national

and applicable international legislative provisions and principles. The

study must also satisfy the requirements of NEMA leading to issuance of

a NEMA license

Page 31

ii. Undertake Geotechnical Investigation and Topographical Survey

iii. Design, supply and install tie ins to the existing facilities

iv. Design, select, Supply, string, ditch after excavation and install API 5L

specifications pipes with appropriate wall thickness as may be necessary

v. Identify, locate all existing services and protect as necessary

vi. Design and locate valve chambers complete with mainline valves to rated

class

vii. Carry out hydrotest on the newly laid pipelines before joining to the old

pipeline.

viii. Drain the product from the lowest elevation point by tapping a 3-inch

tee-off fitted with a ball valve.

ix. Hold the product temporary storage tanks at the site. This exercise shall

be supervised by the employer. The temporary holding tanks shall

thereafter be the property of the employer. Prior to the draining, the

contractor shall submit for inspection by the employer the suitability of

the portable temporary storage tanks to be used for the works.

x. Transport the drained product under supervision of the employer to the

designated depot.

xi. Cut the drained line at the designated ends to be marked by the

employer.

xii. The newly constructed pipeline section shall be joined to the existing

pipeline, both upstream and downstream of the cut point, by welding in

accordance to the requirements of API1104 standard.

xiii. Provision of Operation and Maintenance manuals for equipment.

xiv. Provision of two-year operational spares and specialized maintenance

tools for valves.

xv. Provision of ‘As-Built’ drawings.

xvi. Commission existing pipeline. The extent of decommissioning shall

include cleaning and capping the existing pipeline pending retirement.

The client may opt for either abandonment or removal of the existing

pipeline.

xvii. Carry out soil resistivity survey and considering other existing structures

within vicinity and design an appropriate secondary CP system and

integrate to the existing, install, test and commission

xviii. Provide a financial proposal for removal of the pipeline

xix. Provide a financial proposal for abandonment of the pipeline

4.3.2.1 Pipeline Design and Installation

The general route of the proposed pipeline shall follow that of the existing 14- inch

pipeline’s Right of way with a centre displacement of about 5m to the right downstream

in most of the sections. The detailed engineering design will incorporate the pipeline

route drawings that show the detailed pipeline alignment and which include location

of underground/other buried services. The Contractor shall at his/her own expense

carry out all necessary survey to locate underground/buried services such as

electric/fibre optic cables, telephone lines, gas lines, water pipelines etc. and other

permanent structures in order to protect and prevent any accident or damage to third

parties’ property. The EPC contractor will be expected to take into account the

following tasks during design: -

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a) Hydraulic Analysis

b) Surge Analysis

c) Tie - ins to the existing pipeline both at KM 38, 43 along Samburu Areas and

KM390,400 along Konza Areas.

d) Operation and Control Philosophy

e) Interface Management

f) Corrosion Control both Internal and External

g) Corrosion Monitoring

h) Hydraulic Protection in the Crossings

i) River, Road and utility Cross

A. Specifications

4.4.1 Mechanical Works

A . Design Codes and Standards

a) In-Station Piping

Design of in-station piping shall be in accordance with ASME B31.3, “Process Piping”,

supplemented as appropriate by the following codes of practice and standards:

i. I.P. Model Code, Part 6 – “Pipeline Safety Code “.

ii. ASME B31.4 – “Liquid Transportation Systems for Hydrocarbons, Liquid

Petroleum Gas, Anhydrous Ammonia and Alcohols”

The design philosophy with regard to safety and protection against overpressure shall

be in accordance with API Recommended Practice 521, Latest Revision.

b) Piping Design

i. The EPC Contractor shall determine the piping pressure –Temperature rating

class having due regard for product vapour pressures and friction losses in

pipework as a minimum. Piping shall be designed for the maximum pressure of

the piping class identified. The EPC Contractor shall produce piping specifications

for each piping class and material and shall submit the same to KPC for approval.

Prior to commencing manufacture of line pipe, the EPC Contractor shall on

behalf of the manufacturer submit to KPC for approval detailed manufacturing

procedures for each pipe diameter, heat treatment condition, wall thickness and

product analysis. This shall include:

Material procurement source:

a. Limits on heat and product analysis including residual elements to be

placed on the steelmaker.

b. Material manufacturing details including steel making process, de-

sulphuring, vacuum degassing, casting and rolling.

c. Heat treatment procedures.

d. Method of straightening, sizing, pipe finishing, stretch reduction and

hydrostatic testing.

e. Dimensional Tolerances.

f. Quality Control, inspection and testing procedures.

g. Pipe identification numbering scheme.

ii. Design temperature range for exposed above-ground piping and equipment shall

be in accordance with the Meteorological Data station obtainable from the

website.

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iii. Design of structural attachments, welded direct to the pipe, shall be in

accordance with ASME B31.3.

iv. The EPC Contractor shall undertake an analysis of his proposed piping design to

prove the adequacy or otherwise of piping flexibility. Where points at which

excessive local stresses may be generated due to local restraints, such as guides,

anchors, branch connections to equipment etc. are identified, the EPC

Contractor shall undertake all necessary corrective actions. Such calculations shall

be subject to KPC’s approval.

v. Aboveground piping and equipment, which may be isolated by, block or check

valves, shall be protected against overpressure due to liquid thermal expansion

by ¾” x 1” thermal relief valves cascade.

vi. Buried pipelines shall be factory applied polyethylene coated. The coating

system shall comprise as a minimum three layers, an epoxy primer, co-polymer

adhesive and extruded polyethylene. The coating shall be suitable for the

maximum design temperature of 50degree Centigrade or thereabout.

vii. Additional protection shall be afforded by an impressed current Cathodic

protection system.

viii. The design of the Cathodic protection system shall take account of interaction

between the new pipeline and other pipelines within the same corridor.

ix. Line-pipe used shall be to API specification 5L and as a minimum shall meet all

the criteria set in Tables in the specification without any omission-The client will

take keen interest on information provided in Tables 2 (Chemical properties),

Table7 (Tolerances for Diameter), Table 9 (Tolerances for length). Latest

Revision of the API 5L is applicable for all references.

x. Prior to commencing manufacture of line pipe, the EPC Contractor shall submit

to KPC for approval detailed manufacturing procedures for each pipe diameter,

heat treatment condition, wall thickness and material analysis.

xi. KPC shall attend Factory Acceptance Tests for all line-pipe as described.

4.4.1.2 Main line Valve Selection Philosophy

The following philosophy shall be adopted in the selection of general service block and

check valves.

i. All valves shall be of tight shut-off design, employing resilient primary seals with

metal-to-metal seat.

ii. Valve drains shall, where provided, be plugged.

Specific valve requirements shall be as follows: -

(a) General Service Block Valves

i. Equipment isolation valves shall be full bore ball type to API 6D and “Fire Safe”

to API 6FA or API 607.

ii. Valves of 2” and above shall be of two piece bolted construction having a cast

carbon steel body with flanged end connections.

iii. Valves of 1½” and below shall be of three piece bolted construction with forged

carbon steel body and socket weld end connections.

(b) General Service Check Valves

i. Valves for general service applications size 2” and above shall be full bore swing-

check design in accordance with API 594 or API 6D.

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ii. Swing-check valves shall have a cast carbon steel body with bolted top cover

and flanged end connections.

iii. Check valves for size 1½” and below shall be piston or ball type and shall be

suitable for mounting in the horizontal or vertical plane as applicable. Valves

shall be of forged carbon steel construction with socket weld end connections.

(c) Double Block and Bleed Valves (DBB)

i. Valves used for manifold purposes shall be of the high integrity double block

and bleed type having a reduced port tapered plug with retractable slips and

renewable resilient seals.

ii. The valves shall be installed such that the slips shall be accessible via the valve

body base flange.

iii. Valves are to be generally in accordance with API 6D and be pressure tested and

inspected in accordance with API 6D or API 598.

iv. The valves shall be fire safe to API 6FA or API 607.

v. Valves shall be fitted with an automatic body bleed system with thermal relief,

piped to the upstream side of the valve body. The piping arrangement shall also

incorporate a manual bleed system.

vi. Valves shall be supplied complete with leak detection system.

(d) Thermal Relief Valves

i. Thermal relief valves shall generally be ¾” x 1”, spring-loaded, safety-relief

valves of conventional pattern.

ii. Valves shall be of forged carbon steel construction with flanged end connections.

iii. All thermal relief valves shall be installed together with isolation valves.

(e) Pressure Relief Valves

i. Pressure Relief Valves shall be of the direct acting, spring loaded type.

ii. Valves shall be of forged carbon steel construction with flanged end connections.

iii. All pressure relief valves shall be installed together with isolation valves.

4.4.1.3 Valve Operators

i. Manually operated valves 10” and larger shall be equipped with gear operators.

ii. Actuators for motorized valves shall be sized such that open/close times for all

valves shall have an upper limit of approximately 20 seconds.

iii. KPC shall attend Factory Acceptance Tests for all valves.

4.4.1.4 Piping Arrangement and General Design

i. Piping shall be designed to avoid or minimize the creation of “dead legs”.

ii. Buried in-station piping shall be kept to an absolute minimum.

iii. Where it is necessary to bury process or drain piping within the station, it shall

be tape wrapped.

iv. Isolating joints protected by zinc electrodes or surge diverters shall be installed

at the station boundary to electrically isolate the above ground station piping

from the impressed current, Cathodically protected buried pipelines.

Design of drains, vents and thermal relief facilities

The following philosophy shall be adopted in the design of drains, vents and

thermal relief facilities:

a) Closed Bleed Drain System

1 The number of drains permanently connected into the closed-bleed

drainage system shall be kept to a minimum. These shall be limited to

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thermal-relief valves and equipment drains required for maintenance

purposes.

b) General Drains and Vents

1 Drain points shall be provided where necessary at pipework low

points within the station to permit drain-down of piping and

equipment during testing, commissioning and maintenance.

2 The number of general drains and vents shall be kept to an absolute

minimum.

3 Vents shall be positioned relative to local drain points such that

sections of piping may be washed through or purged and gas-freed.

Vents shall be provided at high points to ensure proper priming of

piping and equipment.

4 Connections shall be of socket weld construction.

5 All vent and drain connections, other than closed-bleed drains, shall

have valve open ends capped or plugged-off.

c) Thermal Relief

1 Thermal relief valves shall be arranged to discharge into the closed bleed

drain system.

2 By-pass check valves around block valves shall not be used as a means of

protection against overpressure due to thermal effects.

3 Piping headers of the same specification, divided into sections by check

valves, shall be protected by a thermal relief valve on the extreme

downstream section only. Where such header sections are two different

specifications, relief valves shall be provided to protect each section.

4 Thermal relief connection design shall be similar to that for drains and

vents.

5 Connections to equipment and piping to be protected shall be equipped

with a ball valve upstream of the thermal relief valve.

d) Valve Locks

1 All block valves for instrument, drain, vent or relief valve isolation service

shall have locking plates fitted to facilitate locking in the open or closed

position.

A). Civil Works

General

The civil works will include site clearance, setting out, excavations for pipe

laying, backfill, construction of all ducts, paved areas, pipe supports, tank

foundations, reinstatement and all other civil works, including formwork,

concreting, reinforcement, etc.

a). Site Clearance and Setting Out

The sites shall be prepared to the levels and measurements approved by the

Employer’s representative. Bench marks shall be established and constructed at

the start of the works and shall be maintained for the period of the Contract.

They shall refer to an approved datum. All work shall be as shown on the

drawings or as directed by the Employer’s representative to the specified levels,

depths, widths and tolerances. Prior to commencing construction, the EPC

Contractor shall establish reference points to define the works.

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The EPC Contractor shall set out levels of the works at intervals as are required

to do the works. Before commencement of any excavation, the site shall be

surveyed in conjunction with the Employer’s representative to establish existing

ground levels and these agreed levels shall form the basis for the calculation of

quantities of any subsequent excavation and backfilling. These levels shall be

taken before any topsoil has been removed. The EPC Contractor shall in the

presence of the Employer’s representative set out the works in accordance with

the drawings, making any changes the Employer’s representative may deem

necessary and confirming the exact positions of other services e.g. Power cables,

Communication cables etc.

During the progress of the Works, the EPC Contractor shall not remove, damage,

alter or destroy in anyway whatsoever, any plot or survey beacons. He shall

notify the Employer’s representative of the need to interfere with any beacon.

The Employer’s representative shall approve any removal and reinstatement that

he considers necessary. Should any beacon be found to be above or below the

level of the finished Work, the EPC Contractor shall immediately report the same

to the Employer’s representative’s representative. Should any beacon be

damaged or destroyed by the EPC Contractor he shall forthwith report the

damage to the Employer’s representative and the relevant authorities and shall

be held liable for the cost of reinstatement thereof.

B).Trenching /Excavations

All excavations in open cut shall be the minimum necessary for the construction

of the Works. Pipe trenches shall in no case exceed the trench width restrictions

shown on the Drawings. For any trench excavated with battered or stepped sides

that portion of the trench which extends from the

formation to a point not less than 300 mm above the crown of the pipe when

laid in its correct position shall be formed with vertical sides the minimum

practical distance apart. In areas frequented by the public the maximum length

of open trench in any one section shall not exceed 50 meters. For other areas

the maximum length of open trench shall be subject to

approval. No excavation with battered sides will be permitted in public

highways private gardens or within 30 meters of any building or other structure.

Bulk excavations shall be made to such sizes, depths and inclinations as the

Engineer may direct or as may be necessary to construct the Works. Any

excavated material stored on site for any purpose shall be deposited in such a

manner that no damage and as little inconvenience as possible is caused or as

directed by the Engineer. Where temporary crossings are required at points of

access between adjoining properties and the public highway suitable steel plates

shall be provided and maintained until the trench is refilled. A minimum clear

carriageway width of 3 meters shall wherever possible be left for vehicular

access. The Contractor shall comply with the procedures and requirements of

the Police and the Authority having charge of the road surfaces. Where

undertaking excavation works adjacent to tree planted areas and in road verges

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and central reservations the Contractor shall remove excavated material to

temporary tip for the duration of excavation and construction operations.

C). Working around Existing Oil Lines and facilities

When working in the vicinity of the existing oil line, the Contractor shall comply

with the following:

a) A hand excavated pilot hole shall be dug to determine the oil line invert

level and position prior to any trench excavation in the oil line pipe

reservation.

b) The excavation for the works under construction shall be carried out by

hand up to 2 meters either side of the existing oil line.

c) Jackhammers (manually operated) may be used within 5 meters of the

buried pipeline only after completion of hand excavation as detailed

above.

d) The use of Mechanical/Hydraulic rock-breakers and excavators is allowed

beyond 5meters from the buried pipeline.

e) The existing pipeline shall be supported and protected while the new

valve pit is being constructed.

f) On completion, the existing oil line shall be re-bedded in a minimum of

150 mm of naturally occurring soft sand. The remaining backfill shall be

made up of selected fill, which shall be free from organic matter. The

Engineer will require to be notified a minimum of 24 hours in advance,

to witness the backfilling operation.

g) Any damage caused by the Contractor to the external protective

wrapping of the oil line shall be notified promptly to the Engineer for

inspection prior to repair in accordance with Owner’s procedures by the

Contractor.

h) The Contractor shall provide supervision at all times whilst work is carried

out adjacent to the existing oil line.

D). Backfilling

Prior to backfilling the Contractor shall clear excavations of all debris and foreign

matter satisfaction. After the Engineer has approved the permanent works, the

first 150 mm shall be covered by hand with lightly compacted selected excavated

material free from clay lumps large stones or other material which may cause

damage to the permanent works. The remainder of the excavation shall be filled

with material deposited in layers not exceeding 150 mm thickness and each layer

watered and compacted with vibrating trench roller, power rammer, or

vibrating plate compactor to at least 95% modified A.A.S.H.T.O. (American

Association of State

Highway and Transportation Officials) optimum density, unless otherwise

approved by the Engineer. All excavation below pad footings, column bases or

any other bases for support of the permanent works shall, where directed by the

Engineer, be backfilled with mass concrete Grade 10.

Except in carriageways or paved areas the backfill material shall be brought up

to existing ground level. When ground surfaces consist of sweet soil, the final

layer of backfill shall be sweet soil of the same thickness as that previously

existing.

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Any excavated material which is, in the opinion of the Engineer, unsuitable for

backfill shall be removed from the site by the Contractor. Any deficiency of

backfill shall be made good with suitable material from other areas of the site or

imported as required. The Contractor shall ensure that all trenches/excavations

are backfilled and no damage is caused to permanent works or adjacent

structures.

E) Existing Services

The EPC Contractor shall be responsible for the location and protection of all

local services and apparatus. He shall be responsible for liaison with any

Statutory Undertaking, Local Authority, Private Company or Agency for the

transmission of water, electricity and communications and for identification and

protection of all cables, pipes, ducts, sewers, drains or any other services owned

or operated by these organizations.

The EPC Contractor shall take every precaution to ensure that all existing

services, pipes cables, boundary fence, drainage etc. within and near the line of

excavation, are located, supported and safeguarded from damage. Any damage

caused to any such facilities attributable to the EPC Contractor’s operations, his

constructional traffic or his negligence shall be made good by the EPC Contractor

at his own expense to the satisfaction of the Employer’s representative or

responsible authority.

F). Reinstatement and landscaping,

All areas shall be permanently reinstated to the satisfaction of the Employer’s

representative. Surplus material, waste and rubbish shall be removed from the

site and disposed of in manner approved of by the Employer’s representative.

All hedges, trees, fences etc. shall be reinstated and the site left in a tidy and

satisfactory condition. Grass seed, trees and shrubs used by the EPC Contractor

in reinstatement and landscaping shall be approved by the Employer’s

representative.

The opening up of roads and footways and reinstatement of the same shall in

all respects be carried out to the approval of the Employer’s representative.

G). Stone Pitching

Stone pitching to drains, inlets and outlets of culverts and around structure shall

consist of sound un-weathered rock approved by the Employer’s representative.

The stone as dressed shall be roughly cubical in shape with minimum dimensions

of 150 x 150mm for normal thickness of stone pitching. The surface to receive

the pitching shall be compacted and trimmed to slope and the stone laid,

interlocked and rammed into the material to give an even finished surface. In

areas where stone pitching has been damaged, the EPC Contractor shall identify

such areas and notify the Employer’s representative for his agreement of the

extent of the Works required and his approval and instructions to proceed with

the Works.

H). Instrumentation and Control Works

a). None under this scope

I). Fibre Optic Cable

Page 39

a) None under this scope

J). Corrosion Control Works

The EPC Contractor shall design, supply and install materials, for corrosion

control and monitoring and any associated mitigation measures.

The design for Cathodic protection system shall be based on the following

minimum requirements :-

• Minimum 25 years life,

• Provide for an end life current demand of as per the NACE standards to

protect entire surface of the buried pipe-work and associated facilities at the

pump stations (PS 9 & PS 10),

• Achieve a minimum structure to soil potential of -1.0 V with regard to a

CU/CUSO4 reference cell at all points on the structures to be protected with

a maximum of -1.5 V or as recommended by the coating material

specification,

• Where necessary provide isolation of pipeline at ends by means of mono-

block isolating joints,

The CP detail design shall consider:

• Calculation of current requirement

• Calculation of anode sizing, output, consumption and efficiency.

• Calculation of circuit resistance, including Ground-bed to earth, structure to

earth and cable resistances.

• Drawings of ground beds and overall Cathodic protection stations layout.

• Material specifications for all the items that shall be used.

• Installation specifications.

• Details of cable attachment to storage to the pipeline.

• Details of measures to asses and mitigate Cathodic protection interaction

both resulting from the new pipeline Cathodic protection system and the

effect of other dc systems on the pipelines.

• Interference from CP systems on adjacent pipelines.

• Installation of adequate PSP measurement/monitoring test points along the

ROW as the per NACE standards.

K). Electrical and Instrumentation works

Scope

Supply electrical cables, lay, Terminate and Test cables for powering the station actuators

wherever is needed. Supply Control Cables, Lay, Terminate and test control cables

L). First Aid Kits

The EPC contractor shall provide a First Aid Kit at each Employer’s Representative office at each

site. This shall be easily accessible and shall be replenished at maintained by the EPC contractor

at all time.

M). Accommodation for the Contractor’s Employees

The EPC’s contractor’s site camp shall not be established within KPC’s premises.

Page 40

N). EPC Contractor’s Equipment

The EPC Contractor shall provide, maintain and remove on completion of Works all

temporary installations, equipment and devices necessary for the completion of the

Works.

O). Procurement of Materials

The responsibility for so ordering and delivering materials so that they may be tested

sufficiently far in advance of the Work so as not to delay it, shall rest upon the EPC

Contractor, and he shall not be entitled to any time credit for delay occasioned by his

neglect to order sufficiently well in advance or to payment of any costs he may incur

as the result thereof.

P) Sign Board

The EPC Contractor shall provide, sign-write, erect and maintain until the expiry of the

defects liability period sign boards of sound timber construction and hollow section

steel uprights to the dimensions, sign-written and painted in durable colours, as directed

by the Employer’s representative. Such sign boards shall be removed upon expiry of

the defects liability period, and such removal shall be a prerequisite for the issuance of

the defects liability certificate. The signboards shall each contain not more than 10 m2

of inscribed painted timber surfaces and have a total height above ground level of not

more than 3.8 m. the steel uprights s hall be imbedded in class 20 concrete of sufficient

volume to give the whole assembly adequate stability.

Q) Provision of Facilities for Employer’s representative & staff

The EPC Contractor shall provide the necessary tackle, access, equipment, devices,

consumables and labour to enable the Employer’s representative conveniently carry out

such inspections as they deem necessary at all times during the period of the Contract.

R) Offices for Employers staff

There are site offices existing in good condition which were used in another project at

both PS1 and PS3 and PS7. KPC shall provide one of the offices to the contractor

The EPC Contractor shall maintain for the duration of the contract a fully furnished and

equipped offices

i. Furniture for the Site Engineers’ Offices

(These shall revert to the Employer at the end of the project)

The EPC Contractor shall provide the list of furniture for the Site Engineer’s

Offices at PS1 and PS3 for Employer’s Representative approval.

ii. Equipment for the Site Engineer’s Office

(These shall revert to the Employer at the end of the project)

The EPC Contractor, when instructed, shall provide and install at the Site

Engineer’s office the equipment. The list of Office Equipment is provisional. The

equipment and software must come with a certificate dealer’s licence and

manufacturer’s warranty. The EPC Contractor, when instructed, shall provide

and install the equipment specified below: -

a). Photocopy/ Printer / Scanner Machine 1 No.

Minimum Speed 15-17 copies per minute Paper size A6 – A3 recommended

monthly volume 6000 copies

Type: Desktop Laser Type

Paper feed – 250 sheets – Cassette – Stacks by pass

b) Personal Computer (PC) 2 No.

Processor Intel Core i7

i. RAM/ MEMORY 4GB (minimum)

Page 41

ii. 1 Hard Disk 500 GB (minimum)

iii. 4. Monitor 17” TFT Colour SVGA with graphic card minimum 2GB

iv. Keyboard 101 Keyboard

v. Ports 4 USB ports (minimum)

vi. 7. Operating system Windows 7 Professional or latest version

vii. CD/DVD Writer

viii. Network card

ix. One-year warranty

I Laptop 2 No.

i. Processor Intel Core i7

ii. RAM/ MEMORY 4GB (minimum)

iii. Hard Disk 500 GB (minimum)

iv. Monitor 14” TFT Colour SVGA with graphic card minimum 2GB

v. Keyboard 101 Keyboard

vi. Ports 4 USB ports (minimum)

vii. Operating system Windows 7 Professional or latest version

viii. CD/DVD Writer

ix. Network card

x. One-year warranty

Digital Camera 2 No.

i. 16 Mega Pixels

ii. SD Card minimum 4GB

iii. 10 x optical zoom

iv. Lithium iron rechargeable battery

v. Genuine leather carry case

LCD Projector 1 No.

i. 2500 lumens

ii. 2200:1 contrast ratio

iii. HD native resolution

iv. Lamp life cycle 5,000 hours eco-mode

v. 3D capable

vi. Projection distance 1~12 metres

vii. HD capable

viii. Connectivity USB, VGA, S-Video, HDMI

Office Stationary for entire duration of the project

KPC STAFF TRAINING AND DEVELOPMENT

Equipment Operation and Maintenance Training

This training shall be done locally and shall be offered to 30 No. KPC technical staff on

site on the various equipment as per installation, operations and maintenance manuals.

A proper scheduled program, with trainers and adequate training tools shall be availed

by the EPC Contractor.

FACTORY ACCEPTANCE TESTS

The EPC Contractor shall facilitate Factory Acceptance Tests for the following:

Page 42

No. Description No. of Personnel No. of Days

1 Valves and Actuators 4 7

2 Line pipes 4 12

KPC shall meet all the incidental costs for the FAT.

DOCUMENTS TO BE ISSUED TO EPC CONTRCATOR

The drawings to be issued to the EPC contractors are as follows.

1. Soil resistivity Data along the existing pipeline route. However, the

contractor shall be expected to conduct their own survey during work

execution

2. Elevation Profile for the pipeline route for the old pipeline

3. Any other document as may be requested by the EPC contractor if available

Page 43

STANDARD FORMS

LETTER OF ACCEPTANCE

[date]

To:

[name of the EPC Contractor]

[address of the EPC Contractor]

Dear Sir,

This is to notify you that your Tender dated for the

execution of [name of

the Contract and identification number, as given in the Tender documents] for the

Contract Price of USD. [Amount in figures]

[USD [amount in words] in

accordance with the Instructions to Tenderers is hereby accepted.

You are hereby instructed to proceed with the execution of the said Works in

accordance with the Contract documents.

Authorized Signature ……………………………………………………………………

Name and Title of Signatory ……………………………………………………………

Attachment: Agreement

Page 44

FORM OF AGREEMENT

THIS AGREEMENT, made the _________________ day of ________ 20 ______ between

Kenya Pipeline Company Ltd_ of[ ] __________________________________________

(hereinafter called Employer) of the one part AND

______________________________________________ of Whose registered Office is

Kenpipe Plaza] ____________________________________ (hereinafter called “the EPC

Contractor”) of the other part. WHEREAS KPC is desirous that the EPC Contractor

executes EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM

WHITE PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38-

43(SAMBURU AREA ) & 390-400(KONZA AREA) (hereinafter called “the Works”)

located in Samburu and Konza (KPC has accepted the tender submitted by the EPC

Contractor for the execution and completion of such Works and the remedying of any

defects therein for the Contract Price of USD ___________________________ [Amount

in figures], USD _____________________________________________ [Amount in

words].

NOW THIS AGREEMENT WITNESSETH as follows:

1. In this Agreement, words and expressions shall have the same meanings as are

respectively assigned to them in the Conditions of Contract hereinafter referred

to.

2. The following documents shall be deemed to form and shall be read and

construed as part of this Agreement in the following order: -

(i) Contract Agreement

(ii) Form of Tender

(iii) Appendix to the form of tender

(iv) Particular Conditions of Contract Part II

(v) General Conditions of Contract Part I

(vi) Specifications

(vii) Priced Lump Sum bill of quantities

(viii) Technical proposal

(ix) Programme of works

(x) Drawings

3. In consideration of the payments to be made by The Employer to the EPC

Contractor as hereinafter mentioned, the EPC Contractor hereby covenants with

The Employer to execute and complete the Works and remedy any defects

therein in conformity in all respects with the provisions of the Contract.

4. The Employer hereby covenants to pay the EPC Contractor in consideration of

the execution and completion of the Works and the remedying of defects

therein, the Contract Price or such other sum as may become payable under the

provisions of the Contract at the times and in the manner prescribed by the

Contract.

Page 45

IN WITNESS whereof the parties thereto have caused this Agreement to be executed

the day and year first before written.

The common Seal of ______________________________________________________

Was hereunto affixed in the presence of ___________________________________

Signed Sealed, and Delivered by the said __________________________________

Binding Signature of The Employer

_________________________________________________

Binding Signature of EPC Contractor ______________________________________

In the presence of

A Name

____________________________________________

_

Address __________________________________________

Signature _________________________________________

(ii) Name _____________________________________________

Address __________________________________________

Signature _________________________________________

Page 46

FORM OF TENDER SECURITY

WHEREAS ……………………………………….. (hereinafter called “the Tenderer”) has

submitted his tender dated ………………………… for the EPC TENDER FOR THE

REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE PETROLEUM PRODUCT

PIPELINE FROM KILOMETERE MARKER NO. 38-43(SAMBURU AREA ) & 390-

400(KONZA AREA KNOW ALL PEOPLE by these presents that WE

……………………… having our registered office at ………………(hereinafter called

“the Bank”), are bound unto ……………………………(hereinafter called KPC) in the

sum of USD.……………………… for which payment well and truly to be made to the

said KPC, the Bank binds itself, its successors and assigns by these presents sealed with

the Common Seal of the said Bank this ……………. Day of ………20…………

THE CONDITIONS of this obligation are:

1. If after tender opening the tenderer withdraws his tender during the period of

tender validity specified in the instructions to tenderers

Or

2. If the tenderer, having been notified of the acceptance of his tender by KPC

during the period of tender validity:

(a) fails or refuses to execute the form of Agreement in accordance with the

Instructions to Tenderers, if required; or

(b) fails or refuses to furnish the Performance Security, in accordance with the

Instructions to Tenderers;

We undertake to pay to KPC up to the above amount upon receipt of his first

written demand, without KPC having to substantiate his demand, provided that

in his demand KPC will note that the amount claimed by him is due to him,

owing to the occurrence of one or both of the two conditions, specifying the

occurred condition or conditions.

This guarantee will remain in force up to and including thirty (30) days after the

period of tender validity, and any demand in respect thereof should reach the

Bank not later than the said date.

_______________________ ______________________________

[date[ [signature of the Bank]

_______________________ ______________________________

[witness] [seal]

Page 47

PERFORMANCE BANK GUARANTEE

(Date)

To: Kenya Pipeline Co. Limited

P.O. Box 73442-00200,

Nairobi

Dear Sir,

WHEREAS ______________________(hereinafter called “the EPC Contractor”) has

undertaken, in pursuance of Contract No. XXXX dated _________ to execute EPC

TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE

PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38-

43(SAMBURU AREA ) & 390-400(KONZA AREA (hereinafter called “the Works”);

AND WHEREAS it has been stipulated by you in the said Contract that the EPC

Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum

specified therein as security for compliance with his obligations in accordance with the

Contract;

AND WHEREAS we have agreed to give the EPC Contractor such a Bank Guarantee:

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to

you, on behalf of the EPC Contractor, up to a total of USD. ________________ (amount

of Guarantee in figures) US Dollars_________________________(amount of Guarantee

in words), and we undertake to pay you, upon your first written demand and without

cavil or argument, any sum or sums within the limits of US Dollars

_________________________ (amount of Guarantee in words) as aforesaid without

your needing to prove or to show grounds or reasons for your demand for the sum

specified therein.

We hereby waive the necessity of your demanding the said debt from the EPC

Contractor before presenting us with the demand.

We further agree that no change, addition or other modification of the terms of the

Contract or of the Works to be performed there under or of any of the Contract

documents which may be made between you and the EPC Contractor shall in any way

release us from any liability under this Guarantee, and we hereby waive notice of any

change, addition, or modification.

This guarantee shall be valid until the date of issue of the Certificate of Completion.

Page 48

TENDER QUESTIONNAIRE

Please fill in block letters

Full names of tenderer

……………………………………………………………………..

Full address of tenderer to which tender correspondence is to be sent (unless an agent

has been appointed below)

……………………………………………………………………..

Telephone number (s) of tenderer

……………………………………………………………………..

Telex address of tenderer

……………………………………………………………………..

Name of tenderers’ representative to be contracted on matters of the tender during the

tender period

……………………………………………………………………..

Details of tenderer’s nominated agent (if any) to receive tender notices. This is essential

if the tenderer does not have his registered address in Kenya (name, address, telephone,

telex)

……………………………………………………………………..

Signature of Tenderer

Page 49

CONFIDENTIAL BUSINESS QUESTIONNAIRE

You are requested to give the particulars indicated in Part 1 and either Part 2 (a), 2 (b)

or whichever applies to your type of business.

You are advised that it is a serious offence to give false information on this Form.

Part 1 – General

Business Name …………………………………………………………………………….

Location of business premises: Country/Town………………………………………

Plot No ……………………………. Street/Road ………………………………..………

Postal Address …………………. Tel No ………………………………………..……….

Nature of Business ……………………………………………………………...…………

Current Trade Licensee No …………………….. Expiring date …………………….

Maximum value of business which you can handle at any time:

USD ……………………………………………………………………………………………

Name of your bankers …………………………………………………………………….

Branch …………………………………………………………………..……………………

Part 2 (a) – Sole Proprietor

Your name in full ……………………………….. Age …………………………………

Nationality ………………………………………… Country of Origin………………

Citizenship details …………………………………………………………………………

Part 2 (b) – Partnership

Give details of partners as follows:

Name in full Nationality Citizenship Details Shares

1 ……………………………………………………………………………………….....

2 ………………………………………………………………………………………….

3 ……………………………………………………………………………………...…..

Part 2I - Registered Company:

Private or public ……………………………………………………………………………

Page 50

Issued USD ………………………………………………………………………………….

Give details of all directors as follows


1 ………………………………………………………………………………………….

2 ………………………………………………………………………………………….

3 ………………………………………………………………………………………….

Part 2 (d) Interest in the Firm:

Is there any person/persons in ………………………………… [name of KPC] who has

interest in this firm? Yes/No. ……………………… [delete as necessary]

I certify that the information given above is correct

………………………….. …………………………. ………………………….

[Title] [Signature] [Date]

* Attach proof of citizenship

Page 51

4.8.7 SCHEDULE OF PLANT AND EQUIPMENT OWNERSHIP

Particulars

Of Each

Unit

Type/

Rating

Serial

No. &

Reg.

No.

Year of

Manufacturer

Where

made

Value Owned

To Hire;

Give

name of

owner

and

address

Availability

for the

works

Note*

*Details of each machine/equipment in more than one of the same make or type must

be given separately. Details of proposed hire or hire purchase to be submitted giving

names and address of hiring/selling party and serial number/engines number

*Before the award of Contract, the Employer’s representative or his representative may

carry out physical verification of the availability of the plant and equipment listed on

the schedule.

Page 52

4.8.8 JOINT VENTURE SUMMARY

Names of all partners of a joint venture

Lead partner

Partner

Partner

Partner

Partner

Partner

Total value of annual construction turnover, in terms of work billed to clients

Annual turnover data (Construction only USD.)

Partner Year 1 Year 2 Year 3 Year 4 Year 5

1. Lead Partner

2. Partner

3. Partner

4. Partner

5. Partner

6. Partner

TOTALS

Page 53

DETAILS OF CONTRACTS OF SIMILAR NATURE

Name of Firm or partner of a joint venture

Use a separate sheet of each contract

1. Contract reference Number

2. Name of Contract

3. Name of Employer

4. Employer contacts email, telephone, fax, etc

5. Narrative description of the project and type

6. Description of actual works/services provided by the firm

7. Role in the Contract (check one)

* Sole contractor

* Management contractor

* Subcontractor

* Point venture Partner

*Other …………….Specify

8.

9. Value of contract in USD

10. Contractual/signed duration

11. Actual duration

Note: Each project listed to be accompanied by reference from the Client

Page 54

SCHEDULE OF ONGOING CONTRACTS

Name of Firm or Partner of a joint venture

Firms and each partner to an application should provide information on their current

commitments on all contracts that have been awarded, or for which a letter of intent

or acceptance has been received, or for contracts approaching completion, but for

which an unqualified, full completion certificate has yet to be issued.

Name of contract Value of outstanding

work (USD.)

Estimated completion

date

1.

2.

3.

4.

5.

6.

Page 55

PROPOSED KEY STAFF FOR THE PROJECT

Name of Firm

For specific positions essential to contract implementation, Firms should provide the

names of at least two candidates qualified to meet the specified requirements stated for

each position. The data on their experience should be supplied in separate sheets.

1. Name Proposed Position

2.

3.

4.

5.

6.

7

8

9

Page 56

FORMAT OF CURRICULUM VITAE (CV) FOR PROPOSED PROFESSIONAL STAFF

Proposed Position:

___________________________________________________________________________

Name of Firm:

___________________________________________________________________________

____

Name of Staff:

___________________________________________________________________________

____

Profession:

___________________________________________________________________________

______

Date of Birth:

___________________________________________________________________________

_____

Years with Firm: ____________________ Nationality:

_______________________________________________

Membership in Professional Societies:

____________________________________________________________

Registration with licensing bodies to practice:

Detailed Tasks Assigned:

______________________________________________________________________

Key Qualifications:

[Give an outline of staff member’s experience and training most pertinent to tasks on

assignment. Describe degree of responsibility held by staff member on relevant previous

assignments and give dates and locations].

Education:

[Summarize: college/university and other specialized education of staff member, giving

names of schools, dates attended and degree[s] obtained.]

From (Month

and Year)

To (Month

and Year)

GENERAL EDUCATION

Page 57

State College or University Course of Study and

qualification achieved

From (Month

and Year)

To (Month

and Year)

SPECIALIZED EDUCATION

State School, College or

University

Course of Study and

qualification achieved

Employment Record:

[Starting with present position, list in reverse order every employment held. List all

positions held by staff member since graduation, giving dates, names of employing

organizations, titles of positions held, and locations of assignments.]

Certification:

I, the undersigned, certify that these data correctly describe me, my qualifications, and

my experience.

___________________________________________________ Date: __________________

[Signature of staff member]

___________________________________________________ Date: __________________

[Signature of authorised representative of the firm]

Full name of staff member:

____________________________________________________________________

Full name of authorized representative:

__________________________________________________________

Page 58

LITIGATION HISTORY

Name of Firm or Partner of a joint venture

Firms, including each of the partners of a joint venture, should provide information on

any history of litigation or arbitration resulting from contracts executed in the last five

years or currently under execution. A separate sheet should be used for each partner

of a joint venture

Year

Award FOR or

AGAINST Firm

Name of client,

cause of litigation

and matter in

dispute

Disputed amount

(current value,

USD.)

Page 59

CERTIFICATE OF TENDERER’S VISIT TO SITE

This is to certify that

[Name/s]

………………………………………………………………………………………………….

………………………………………………………………………………………………….

Being the authorized representative/Agent of [Name of Tenderer]

………………………………………………………………………………………………….

………………………………………………………………………………………………….

Participated in the inspection visit of the site of the works for the project

EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE


43(SAMBURU AREA ) & 390-400(KONZA AREA …………………………………. Day

of ……………………. 20 …………

Name: ……………………………………………………………..

Signed …………………………………………………………………...……………………

[KPC’s Representative

……………………………………………………………………………….......................

KPC stamp ……………………………………….

Page 60

KEY PERSONNEL

DESIGNATION NAME NATIONALITY SUMMARY OF

QUALIFICATIONS AND

EXPERIENCE

Headquarters

1.Directors

2.

3.

4.

5.

etc

Site Office:

1. Project Manager

2.

3.

4.

5.

etc

I certify that the above information is correct

……………………………………………………………………………………….....

[Title] [Signature] [Date]

Page 61

FORM OF WRITTEN POWER-OF-ATTORNEY

The Tenderer consists of a joint venture shall state here below the name and address of

his representative who is authorized to receive on his behalf correspondence in

connection with the Tender.

………………………………………………………………………………………......

[Name of Tenderer’s Representative in block letters]

………………………………………………………………………………………......

[Address of Tenderer’s Representative]

………………………………………………………………………………………......

[Signature of Tenderer’s Representative]

Page 62

DECLARATION FORM

Date _______________

To:

The tenderer i.e. (name and address)

declare the following:

a) Has not been debarred from participating in public procurement.

b) Has not been involved in and will not be involved in corrupt and fraudulent

practices regarding public procurement.

……………………………………………………………………………………………..

Title Signature Date

(To be signed by authorized representative and officially stamped)

Page 63

SECTION V – FINANCIAL PROPOSAL

FORM OF TENDER

________________ [Date]

TO: Kenya Pipeline Co. Limited

EPC TENDER FOR THE REPLACEMENT OF EXISTING 14-INCH OF 15KM WHITE


43(SAMBURU AREA) & 390-400(KONZA AREA

Dear Sir,

1. In accordance with the Conditions of Contract, Specifications, Drawings and Bills

of Quantities for the execution of the above named Works, we, the undersigned offer

to construct, install and complete such Works and remedy any defects therein for the

sum of USD [Amount in figures] US Dollars

[Amount in words]

We undertake, if our tender is accepted, to commence the Works as soon as is

reasonably possible after the receipt of the Employer’s representative’s notice to

commence, and to complete the whole of the Works comprised in the Contract within

the time stated in the Appendix to Conditions of Contract.

3. We agree to abide by this tender until [inset

date], and it shall remain binding upon us and may be accepted at any time before the

date.

Unless and until a formal Agreement is prepared and executed this tender together with

your written acceptance thereof, shall not constitute a binding Contract between us.

We understand that you are not bound to accept the lowest or any tender you may

receive.

Dated this day of 20

Signature in the capacity of

Duly authorized to sign tenders for and on behalf of

Witness; Name

Address

Signature

Date

Page 64

APPENDIX TO CONDITIONS OF CONTRACT

(This appendix forms part of the tender)

CONDITIONS OF CONTRACT CLAUSE AMOUNT

Tender Security (Bank Guarantee only) - USD 1,000.00

Amount of Performance Security

(Unconditional Bank Guarantee)

4.2 10 percent of Tender sum in the form of

Unconditional bank Guarantee

Program to be submitted 8.3 Not later than 14 days after issuance of

Order to Commence

Insurance against injury to persons and damage

to property

18.3 USD 150,000.00

Period for commencement, from the Employer’s

representative’s order to commence

8.1 14 days

Time for completion 8.2 …………… months

Delay damages 8.7 0.1% of the contract sum per day

Limit of delay damages 8.7 10 % contract price

Completion of outstanding works and

remedying defects

11.1 12 Months

Payment of Retention money 14.9 10 percent of interim Payment

Certificate

Limit of Payment of Retention money 14.9 10 percent of Contract Price

Application for interim payments 14.3 USD 500,000

Interim payments 14.6 28 days

Application for final payment 14.11 42 days

Delayed payment 14.8 0.5 percent per month

Governing laws - Laws of the Republic of Kenya

Resolution of disputes - High Court of Kenya

Law and Language 1.4 English

Language for communication 1.4 English

Right of access to the site 2.1 Not earlier than the commencement

date

Employer’s name and address - Managing Director

Kenya Pipeline Company Limited

P.O. Box 73442-00200

NAIROBI

Engineer’s name and address - Maintenance Manager

Kenya Pipeline Company Limited

P.O. Box 73442-00200

NAIROBI

Engineer’s representative name and address - To be appointed by the Engineer in

writing

Working hours 6.5 Monday to Friday; 0800-1300hrs and

1400-1700hrs

Saturday, 0800-1300hrs

Page 65

Provisional sums 13.5(b)(ii) Ten percent

Adjustments for changes in costs 13.8 Adjustments to the Contract price shall

not apply in this tender

Advanced payment 14.2 No advanced payment in this tender

Application for interim payments 14.3 (c) Ten Percent of the accepted contract

amount

Interim payments 14.6 Kshs. 2million

Currency of payments 14.15 As named in the instruction to bidders

Limitation of liability 17.6 The accepted contract amount

General requirements for insurance 18.1 (a) evidence of insurance – 14 days

(b) relevant policies – 28 days

Insurance for works and contractor’s equipment 18.2 (d) Not applicable

Appointment of the Dispute Adjudication Board

(DAB)

20.2 28 days after commencement date

Failure to agree DAB 20.3 The Chairman, The Chartered Institute

and Arbitrators, Kenya Branch

NAME OF SIGNATORY

…………………………………………………………………………………………………

TITLE OF SIGNATORY …………………………………………………………………….

SIGNATURE…………………………………………………

Page 66

FINANCIAL CAPABILITY

Name of Firm or partner of a joint venture

Firms, including each partner of a joint venture, should provide financial information

to demonstrate that they meet the requirements stated in the Instructions to Bidders.

Each firm or partner of a joint venture must fill in this form. If necessary, use separate

sheets to provide complete banker information. A copy of the audited balance sheets

should be attached.

Banker

Name Address of banker

Telephone

Contact name and title

Fax

email

Summarize actual assets and liabilities in US Dollars or Kenya Shillings for the previous

five years. Based upon known commitments, summarize projected assets and liabilities

in US Dollars or Kenya Shillings for the next two years, unless the with holding of such

information is justified by the Firm to the satisfaction of KPC.

Financial

Actual:

Projected:

Information

previous five years:

next two months in USD:

1.

2. 3. 4. 5. 6

1. Total assets

2. Current assets

3. Total liabilities

4. Current liabilities

5. Profits before

taxes

6. Profits after

taxes

Page 67

Specify proposed sources of financing to meet the cash flow demands of the Project,

net of current commitments

Source of financing

Amount (USD).

1.

2.

3.

4.

Attached audited financial statements for the last five years (for the individual Firm or

each partner of a joint venture).

Firms owned by individuals, and partnerships, may submit their balance sheets certified

by a registered accountant, and supported by copies of tax returns, if audits are not

required by the laws of their countries of origin.

Page 68

5.4 BILLS OF QUANTITIES

5.4.1 Schedule of Prices

Notes on Pricing

1. The EPC Contractor shall quote for all items of the Works executed on an EPC

basis and the prices shall be quoted for the complete scope of Work as described

or implied in this tender document.

2. The Schedule of Prices has been prepared on the basis of Lump Sum items or

otherwise stated. The prices given shall be verified by the EPC Contractor as

being totally inclusive of all activities required to complete the Works in

accordance with the Contract and to the approval of KPC.

3. The EPC Contractor shall provide a detailed breakup of his Lump sum costs as

part of tender in a manner that the overall picture for the quoted price can be

understood and form the basis of valuation of the works during construction.

4. The EPC Contractor shall complete a Schedule of Prices and the Total Price shall

include everything to be supplied, delivered and installed by the EPC

Contractor.

5. The EPC Contractor shall submit prices for the supply and delivery to Site of all

listed materials.

6. Where a bidder fails to quote a price of any item of the Schedule of Prices, KPC

will consider that the price of that item is included among other items and the

EPC Contractor will be obligated to furnish that item at no extra cost to KPC,

if awarded the Contract.

7. The bidder shall be deemed to have obtained all information as to port

clearance facilities and charges, loading and unloading facilities and charges,

storage facilities and charges, transportation facilities and charges, congestion

and/or other conditions to be expected at Mombasa Port or any other entry

port and all requirements related thereto.

8. The EPC Contractor shall be responsible to make complete arrangements for

the transportation of materials and equipment to the Site. The bidder shall be

deemed to have included all clearing, forwarding and other incidental costs in

this regard in his bid.

9. The EPC Contractor shall pay all taxes, duties and levies imposed by law which

become payable as a result of the EPC Contractor’s performance under this

contract.

10. Where required potential bidders should price each element separately for purpose

of determining price per item. Failure may lead to the bid being determined as

being Non-responsive to the bid requirement.

Terms of Payment

The following payment terms shall apply:-

1. Advance Payment: There shall be no advance payments.

Page 69

2. All payments shall be subject to the deduction of 10% retention in

accordance with the Contract.

3. Preliminary and General Works

a. The EPC contractor to provide a detailed breakdown of the P&G

items on the supply and maintenance portions.

4. Design Engineering and Other Services

b. To pay 100% on completion of the task, save the 10% retention.

5. Procurement & Supply of Equipment & Raw Materials

a. Imported Equipment requiring Factory Acceptance Tests

i. 10% upon placement of order with sub vendor (Documentary

evidence shall be required)

ii. 30% after complete and successful Factory Acceptance Tests

and submission of pre-shipment inspection documents.

iii. 50% upon arrival of the equipment/materials at Site.

iv. 10% on commissioning of the project and handover

b. Imported Equipment NOT requiring Factory Acceptance Tests

v. 10% upon placement of order with sub vendor (Documentary

evidence shall be required)

vi. 30% after submission of pre-shipment inspection documents.

vii. 50% upon arrival of the equipment/materials at Site.

viii. 10% on commissioning of the project and handover

c. Locally supplied materials/ equipment

ix. 90% upon arrival of the equipment/materials at Site.

x. 10% on commissioning of the project and handover.

6. Construction

a. For Construction, payments shall be made against the EPC Contractor

actual progress as certified by the Employer’s representative. The EPC

contractor is expected to provide a detail of activities covering the

entire scope. Training and Development

b. To pay 100% on completion of the task.

Page 70

5.4.2 Bills of Quantities

A. PRELIMINARY AND GENERAL WORKS

Item

No.

Description Unit Qty Rate

USD Cost USD

A1 Allow for compliance with the Conditions of

Contract and EPC Contractor’s General

Obligations.

Item LS

A2 Allow for the provision of all insurances,

guarantees, licences, etc as required under the

Contract(list each element and price

separately-failure shall lead to

disqualification)

Item LS

A3 Allow for provision and maintenance of Site

Engineer’s office and equipment for the entire

period of the construction works

Item LS

A4 Allow for the provision and maintenance of

contractors’ camps for the full duration of the

contract

Item LS

A5 Mobilization – Allow for Mobilization of

plant , personnel and equipment .

Item LS

A6 Demobilization – Allow for the

demobilization of plant and equipment

from site.

Item LS

A7 Allow for site clearance and

reinstatement

Item LS

A8 Allow for decommissioning or

abandoning of the Old Pipeline (see

clause 4.3.2 of scope of work)

Item LS

A9 Allow for locating the existing services

with an aim to relocate or protect.

Item LS

SUB- TOTAL A

Page 71

B DESIGN ENGINEERING AND OTHER SERVICES

Ite

m

No.


USD

Cos

t

USD

B1 Allow for carrying out an Environmental and Social

Impact Assessment (ESIA) of the pipeline route as

prescribed in EMCA.

Item LS

B2 Allow for preparation of Engineering Designs and Documentation for Pipeline

from KM38-43 & 390-400. The documents will be reviewed by KPC

engineers.

B2.1 Preliminary Engineering designs and

Documentations

Item LS

B2.2 Detailed Engineering Designs and Documentations

(Working drawings, As-built drawings, etc).( list

each element and price separately-failure shall

lead to disqualification)

Item LS

B3 Allow for liaison with relevant Authorities and all

works necessary for the project (KenHA, County

government, etc.)

( list each element and price separately-failure shall


Item LS

B4 Allow for the preparation of detailed operating

procedures and maintenance manuals, for all

equipment and plant supplied under the Contract.

( list manuals for each equipment and price

separately-failure shall lead to disqualification)

Item LS

B5 Lump sum for any other item not detailed in the bill

and considered by the EPC Contractor not to have

been included above

(LIST EACH ELEMENT AND PRICE SEPARATELY)

Item LS

SUB TOTAL B

Page 72

C SUPPLY OF MATERIALS

Ite

m

No.


USD

Cos

t

USD

C1 Supply of Pipelines , Block Valves and other materials

C1.1 Allow for the supply of Factory Coated with 3 LPE

cross country pipe as per API 5L specification, latest

edition; All criteria set in the specification MUST be

met. The pipe at a minimum shall be Grade X52.

The pipe lengths shall be sufficient to cover the

entire 15km plus 10% excess length. (The contractor

shall specify the thickness of the pipe in his tender.

The pipe thickness shall have sufficient corrosion

allowance to last 25 years) ( list each element and

price separately-failure shall lead to disqualification)

Item LS

C1.2 Allow for the supply of mainline block and check

valves to defined class material pressure

Temperature rating

((list each element and price separately-failure shall

lead to disqualification))

Item LS

C1.3 Allow for the supply of all the necessary hot bends

required for the pipeline segments and sufficient

quantities for the Aerial Markers



Item LS

C2 Allow for supply of all necessary materials for

corrosion control works (heat shrinkable Tapes,

Materials for Temporary& Permanent CP, Coating

Materials for Holidays repairs, etc)

(list each element and price separately-failure shall


Item LS

C3 Allow for supply of all necessary materials for civil

works(soft backfill material, etc) ( list each element

and price separately-failure shall lead to

disqualification)

Item LS

C4 Allow for supply of necessary materials for pipelines

crossings of roads, insulating support centralizer and

sealing materials, rivers crossing, railway crossing

and any other necessary crossings/service in the

project.



Item LS

C5 Allow for supply of necessary materials for

hydraulic protection of the works( list each element

and price separately-failure shall lead to

disqualification)

Item LS

Page 73

C6 Allow for any other item not detailed in the bill and

considered by the EPC Contractor not to have been

included above for the completion of the works

(List each element and price separately)

Item LS

C7 Allow for supply of portable temporary product

storage tanks (see clause 4.3.2 (viii))

SUB TOTAL C

D CONSTRUCTION

Item

No.


USD Cost USD

D1 Allow for the installation of 3LPE mainline

pipes and fittings, hot bends, required for the

works including necessary valves, NDT testing,

welded joint coating, Markers Posts

installation, hydro test and line commissioning

( list each element and price separately-

failure shall lead to disqualification)

Item LS

D2 Allow for installation, test and commissioning

of all necessary corrosion control works list

each element and price separately-failure shall


Item LS

D3 Allow for construction of all necessary civil

works list each element and price separately-

failure shall lead to disqualification)

Item LS

D4 Allow for pipelines crossings on rivers through

open cut (list each element and price


Item LS

D5 Allow for pipelines crossings on rivers, Roads,

rails through HDD/Auger-Bore/Micro-

tunnelling method (list each element and

price separately-failure shall lead to

disqualification)

Item LS

D6 Allow for the trenching and backfilling works

for the purposes of laying the trunk

line/Mainline pipe for the entire length list each

element and price separately-failure shall lead

to disqualification)

Item LS

D7 Allow for hydraulic protection and land

restoration list each element and price


Item LS

D8 Allow for carrying out hydrotest on the newly

laid lines.

Item LS

Page 74

Item

No.


USD Cost USD

D9 Allow for any other item not detailed in the

bill and considered by the EPC Contractor not

to have been included above

(List each element and price separately)

Item LS

SUB TOTAL D

E FACTORY ACCEPTANCE TESTS

Note: THE COST FOR FACTORY ACCEPTANCE TESTS

F PRODUCT HANDLING AND TRANSPORT

Below are explanatory notes responsibilities with regards to the Factory

Acceptance Testing.

1. Responsibility of the Bidder

The bidder shall make arrangements with the equipment manufacturer, to allow

for factory testing of the valves and line pipes before they are shipped to Kenya.

Item

No.

Description Unit

Per

head

Qty Rate

USD Cost USD

E1 Factory Acceptance Test for line-pipes 4 No.

KPC staff for 7 days

No. LS

SUB TOTAL F

Item

No.

Description Unit

Per

head

Qty

Rate Cost

F1 Allow for temporary storage of product at

point of drain at KM390-400

LS LS

F2 Allow for temporary storage of product at

point of drain at KM38-43

LS LS

F3 Allow for transporting of product from

KM38-43 to KPC Mombasa Depots

M3 1,500

F4 Allow for transporting of product from

KM390-400 to KPC Nairobi terminal

M3 1,000

SUB TOTAL F

Page 75

The bidder shall inform KPC when the the valves and line pipes are ready for

testing at the manufacturer’s premises and at the same time liaise with the

manufacturer to issue invitation letters to the KPC representatives.

The bidder may include any other costs that are related to factory acceptance

testing of the fire tender but are not included under KPC responsibility.

2. Responsibility of KPC

KPC shall be responsible for all the logistical arrangements for the following: -

• Air travel to and from the country and city / town where the fire tender

will be tested,

• Accommodation during the period of Factory Acceptance and Testing

• Meals

• Procurement of visa, where applicable

The bidder shall not quote for the services under (2) above. Out-of-pocket

allowance for the employer’s representative attending the Factory Acceptance

and Testing shall be the responsibility of the employer in line with the

employer’s travel policy.

SHEDULE OF PRICES – SUMMARY

ITEM DESCRIPTION COST (USD)

PART ‘A’ – Preliminary and General Works

PART ‘B’ – Design Engineering and Other Services

PART ‘C’ – Supply of Materials

PART ‘D’ – Construction

PART ‘E’ - Factory Acceptance Tests

PART ‘F’ – Product Handling and Transport

1 TOTAL FOR ITEM ‘A-E’

2 ALLOW FOR 10% OF 1

3 TOTAL (1+2)

4 16% VAT OF 3

5 TOTAL (3+4)(TO BE CARRIED TO FORM OF TENDER)

Page 76

5.5 SCHEDULE OF RATES

i. The EPC Contractor shall be required to generate a schedule of rates for materials,

manpower and construction plant in the formats given below.

ii. The Schedule of rates shall be included in the Financial Bid as an appendix.

iii. Except where otherwise described, the rates provided shall be fully inclusive of the

supply to site of all required imported or local materials, labour, plant, equipment

and consumables. Such rates shall have no further or other than application under

the Contract than to be used for the purpose of valuing variations including

additions to, and deletions from the Contract Price.

iv. The costs of such materials delivered to Site should be inclusive of freight, insurance

and handling expenses (where applicable) and shall cover all overhead charges and

profit.

v. The rates for manpower shall be inclusive of all costs incurred in connection with

the employment of site personnel including, but not limited to: administration,

medical services, meals and accommodation, payment of salaries and wages and the

deduction of applicable taxes there from.

vi. The EPC Contractor shall list all the construction plant he proposes to use for the

purposes of this Contract together with their hourly rates. Such hourly rates shall be

deemed to cover all costs necessary for the Contractor to provide and maintain

items of Construction Plant in sound operating condition at the place where they

are to be used with all necessary appurtenances for efficient operation, including

supervision, costs of wages, salaries etc of operators and indirect labour, overheads,

profit, consumables, fuel, oil and greases, etc.

Page 77

Materials

Item Description Unit Rate (USD)

1.

2.

Manpower

Item Staff/ Manpower Rate USD/Hr

1.

2.

Construction Plant

Item Construction Plant Nomination Working

USD/Hr

Standing

USD/Hr

1.

2.

Page 78

5.6 BIDDING FORMS

LETTER OF NOTIFICATION OF AWARD

Address of KPC

_____________________

_____________________

To:

_____________________

_____________________

RE: Tender No.

Tender Name

This is to notify that the contract/s stated below under the above mentioned tender

have been awarded to you.

Please acknowledge receipt of this letter of notification signifying your acceptance.

The contract/contracts shall be signed by the parties within 30 days of the date of this

letter but not earlier than 14 days from the date of the letter.

You may contact the officer(s) whose particulars appear below on the subject matter

of this letter of notification of award.

(FULL PARTICULARS)

SIGNED FOR ACCOUNTING OFFICER

Page 79

FORM OF TENDER

TO: The Managing Director,

Kenya Pipeline Company,

P.O.Box 73442-00200,

Nairobi ____________[Date]

Name of Contract: Construction of Kisumu Oil Jetty

Dear Sir,

1. In accordance with the Conditions of Contract, Specifications, Drawings and Bill of

Quantities for the execution of the above named Works, we, the undersigned offer to

construct, install and complete such Works and remedy any defects therein for the sum of

Kshs._____________________________[Amount in figures]Kenya

Shillings___________________________________________________________________________

________________[Amount in words]

2. We undertake, if our tender is accepted, to commence the Works within twenty-eight

(28) days after the receipt of the Engineer’s Order to commence, and to complete the

whole of the Works comprised in the Contract within the time stated in the Appendix to

Conditions of Contract.

3. We agree to abide by this tender until ___________________[Insert date], and it shall

remain binding upon us and may be accepted at any time before that date.

4. Unless and until a formal Agreement is prepared and executed this tender together with

your written acceptance thereof, shall constitute a binding Contract between us.

5. We understand that you are not bound to accept the lowest or any tender you may

receive.

Dated this ____________________ day of _______20________________

Signature __________________in the capacity of___________________

Page 80

duly authorized to sign tenders for and on behalf of

_____________________________________________[Name of Tenderer ]

of___________________________________________[Address of Tenderer]

Witness; Name______________________________________

Address_____________________________________

Signature___________________________________

Date_______________________________________

Page 81

Page 82

FORM OF TENDER SECURITY

WHEREAS……………………………………….. (hereinafter called “the Tenderer”) has

submitted his tender dated………………………………the (INSERT TENDER

DESCRIPTION AND NUMBER)

KNOW All PEOPLE by these presents that WE

………………………………………………………… having our registered office at

…………………………………(hereinafter called “the Bank”), are bound unto Kenya

Pipeline Company Limited (hereinafter called “the Employer”) in the sum of

Kshss.…………………………… for which payment well and truly to be made to the

said Employer, the Bank binds itself, its successors and assigns by these presents

sealed with the Common Seal of the said Bank this ……………. Day of

………20…………

THE CONDITIONS of this obligation are:

1. If after tender opening the tenderer withdraws his tender during the period of tender validity specified in the instructions to tenderers Or

2. If the tenderer, having been notified of the acceptance of his tender by the Employer during the period of tender validity: (a) fails or refuses to execute the form of Agreement in accordance with the

Instructions to Tenderers, if required; or (b) fails or refuses to furnish the Performance Security, in accordance with

the Instructions to Tenderers; (c) rejects a correction of an arithmetic error in the tender. We undertake to pay to the Employer up to the above amount upon receipt of

his first written demand, without the Employer having to substantiate his

demand, provided that in his demand the Employer will note that the amount

claimed by him is due to him, owing to the occurrence of one or both of the

two conditions, specifying the occurred condition or conditions.

This guarantee will remain in force up to and including thirty (30) days after

the period of tender validity, and any demand in respect thereof should reach

the Bank not later than the said date.

_______________________ ______________________________

[Date] [Signature of the Bank]

___________________________ ______________________________

[Witness] [Seal

(Amend accordingly if provided by Insurance Company)

Page 83

TENDER QUESTIONNAIRE

Please fill in block letters.

1. Full names of tenderer

………………………………………………………………………………………

2. Full address of tenderer to which tender correspondence is to be sent (unless an agent

has been appointed below)

………………………………………………………………………………………

3. Telephone number (s) of tenderer

………………………………………………………………………………………

4. E-mail address and Fax of tenderer

………………………………………………………………………………………

5. Name of tenderer’s representative to be contacted on matters of the tender during the

tender period

………………………………………………………………………………………

6. Details of tenderer’s nominated agent (if any) to receive tender notices. This is

essential if the tenderer does not have his registered address in Kenya (name, address,

telephone, telex)

………………………………………………………………………………………

___________________

Signature of Tenderer

Page 84

CONFIDENTIAL BUSINESS QUESTIONNAIRE

You are required to give the particulars indicated in Part 1 and either Part 2 (a), 2 (b) or 2 (c)

and 2 (d) whichever applies to your type of business.

You are advised that it is a serious offence to give false information on this Form.

Part 1 – General

Business Name ………………………………………………………………………

Location of business premises; Country/Town……………………….

Plot No……………………………………… Street/Road …………………………

Postal Address……………………………… Tel No………………………………..

Nature of Business…………………………………………………………………..

Current Trade Licence No…………………… Expiring date…………………

Maximum value of business which you can handle at any time: Kenya

Shillings………………………..

Name of your bankers………………………………………………………………

Branch…………………………………………………………………………………

Part 2 (a) – Sole Proprietor

Your name in full…………………………………… Age…………………………

Page 85

Nationality………………………………… Country of Origin…………………

*Citizenship details …………………………………………………………………

Part 2 (b) – Partnership

Give details of partners as follows:


1……………………………………………………………………………………

2……………………………………………………………………………………

3……………………………………………………………………………………

Part 2(c) – Registered Company:

Private or public……………………………………………………………

State the nominal and issued capital of the Company-

Nominal Kshs…………………………………………………………………

Issued Kshs……………………………………………………………………

Give details of all directors as follows:

Name in full . Nationality. Citizenship Details*. Shares.

Page 86

1.

………………………………………………………………………………………

2.

………………………………………………………………………………………

3.

………………………………………………………………………………………

4.

………………………………………………………………………………………

Part 2(d) – Interest in the Firm:

Is there any person / persons in …………… ………(Name of Employer) who has interest in

this firm? Yes/No………………………(Delete as necessary)

I certify that the information given above is correct.

……………………… ……………………… …………………

(Title) (Signature) (Date)

* Attach proof of citizenship

Page 87

CERTIFICATE OF TENDERER’S VISIT TO SITE

This is to certify that

[Name/s]……………………………………………………………………

………………………………………………………………………………… Being the authorized representative/Agent of [Name of Tenderer] ……………………………………………………………………………………

…………………………………………………………………………………… participated in the organized inspection visit of the site of the works for the

(Name of Contract: ……………………………………………………………)

……………………………………… day of………………………20…………… Signed………………………………………………………………………………

(Employer’s Representative) ………………………………………………………………………………………

Page 88

FORM OF WRITTEN POWER-OF-ATTORNEY

The Tenderer consisting of a joint venture shall state here below the name and address of his representative who is authorised to receive on his behalf

correspondence in connection with the Tender.

……………………………………………………………… (Name of Tenderer’s Representative in block letters) ……………………………………………………………… (Address of Tenderer’s Representative) ……………………………………………………………… (Signature of Tenderer’s Representative)

Page 89

OTHER SUPPLEMENTARY INFORMATION & LITIGATION STATUS

1. Financial reports for the last five years, balance sheets, profit and loss statements, auditors’ reports etc. List them below and attach copies.

……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

2. Evidence of access to financial resources to meet the qualification

requirements. Cash in hand, lines of credit etc. List below and attach copies of supporting documents ………………………………………………………………………

……………………………………………………………………… ………………………………………………………………………

3. Name, address, e-mail, telephone, telex, fax numbers of the

Tenderer’s Bankers who may provide reference if contacted by the

Employer. ………………………………………………………………………… …………………………………………………………………………

…………………………………………………………………………

4. Information on current litigation in which the Tenderer is involved.

OTHER PARTY (IES) CAUSE OF DISPUTE AMOUNT INVOLVED (KSHS)

I certify that the above information is correct.

…………………… ……………………… ………………………

Title Signature Date

Page 90

DECLARATION FORM

To: Date: ……………………..


Kenya Pipeline Company Ltd,

KenPipe Plaza


P. O. Box 73442–00200

Nairobi, Kenya.

The tenderer i.e. (name and address)

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

……………………………………………………………………………………………….

declare the following:

c) Has not been debarred from participating in public procurement.

d) Has not been convicted or involved in and will not be involved in corrupt and

fraudulent practices.

e) Has not been insolvent, in receivership, bankrupt or is not in the process of being

wound up and is not the subject of legal proceedings relating to the foregoing.

f) Is not guilty of any serious violation of fair employment Laws and practices.

……………………………………………………………………………………………

Name Signature Date

(To be signed by authorized representative and officially stamped)