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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.
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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: -
The Managing Director,
Kenya Pipeline Company Limited,
Sekondi Rd, off Nanyuki Rd, Industrial Area
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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Sekondi Rd, off Nanyuki Rd, Industrial Area
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
successfully completed as described above shall earn 10
marks.
iii. A bidder who provides evidence for Three (3) projects
successfully completed as described above shall earn 20
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
successfully completed as described above shall earn 5
marks.
vi. A bidder who provides evidence for Three (3) projects
successfully completed as described above shall earn 10
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
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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)
The bidder shall provide detailed curriculum vitae of the
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.
Documents to be submitted are: signed CV as a minimum
capturing key competences, projects handled highlighting similar
projects and signed by both candidate and the person with
power of attorney, Notarized copies of relevant certificates
c) Civil Engineer – (1 Marks)
The bidder shall provide detailed curriculum vitae of the
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
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.
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)
Documents to be submitted are : signed CV as a minimum
capturing key competences ,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.
f). Electrical Engineer – (1 Mark)
The bidder shall provide a detailed curriculum vitae of the
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)
Documents to be submitted are : signed CV as a minimum
capturing key competences ,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.
g). Corrosion Control Engineer – (1 Mark)
The bidder shall provide a detailed curriculum vitae of the
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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)
Documents to be submitted are : signed CV as a minimum
capturing key competences ,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 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
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 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 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)
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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
Name in full Nationality Citizenship Details Shares
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
PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38-
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
PETROLEUM PRODUCT PIPELINE FROM KILOMTERE MARKER NO. 38-
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
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.
Description Unit Qty Rate
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
lead to disqualification)
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.
Description Unit Qty Rate
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
( list each element and price separately-failure shall
lead to disqualification)
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
lead to disqualification)
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.
( list each element and price separately-failure shall
lead to disqualification)
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.
Description Unit Qty Rate
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
lead to disqualification)
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
separately-failure shall lead to disqualification)
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
separately-failure shall lead to disqualification)
Item LS
D8 Allow for carrying out hydrotest on the newly
laid lines.
Item LS
Page 74
Item
No.
Description Unit Qty Rate
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
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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.
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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___________________
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duly authorized to sign tenders for and on behalf of
_____________________________________________[Name of Tenderer ]
of___________________________________________[Address of Tenderer]
Witness; Name______________________________________
Address_____________________________________
Signature___________________________________
Date_______________________________________
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…………………………
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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 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: ……………………..
The Managing Director,
Kenya Pipeline Company Ltd,
KenPipe Plaza
Sekondi Rd, off Nanyuki Rd, Industrial Area
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)