GEOTHERMAL DEVELOPMENT COMPANY LTD (GDC)

P.O. Box 100746 – 00101

NAIROBI, KENYA
Tel: 0719037000

TENDER FOR PROVISION OF TUBULAR INSPECTION SERVICES

GDC/EM/OT/029/2018-2019

CLOSING DATE AND TIME: 27TH FEBRUARY, 2019 AT 2.00PM

 TABLE OF CONTENTS

TABLE OF CONTENTS

TABLE OF CONTENTS ………………………………………………………………..2

SECTION I : INVITATION TO TENDER………………………………………… Error!
Bookmark not defined.
SECTION II: INSTRUCTIONS TO TENDERERS …………………………………… 5
APPENDIX TO INSTRUCTION TO TENDERERS ………………………… .16
SECTION III: GENERAL CONDITIONS OF CONTRACT………………………… 21
SECTION IV: SPECIAL CONDITIONS OF CONTRACT .......................................... 25
SECTION V: SCHEDULE OF REQUIREMENTS & DESCRIPTION OF SERVICE...27
SECTION VI SCHEDULE OF QUANTITIES …………………………………………32
SECTION VII: PRICE SCHEDULE ............................Error! Bookmark not defined.35
SECTION VIII:STANDARD FORMS…………………………………………………..38
FORM OF TENDER ……………………………………………………………39
CONFIDENTIAL BUSINESS QUESTIONNAIRE FORM ................................ 40
TENDER SECURITY FORM .............................................................................. 41
CONTRACT FORM ............................................................................................. 42
PERFORMANCE SECURITY FORM ................................................................ 43
DECLARATION OF UNDERTAKING ...........Error! Bookmark not defined.44
POWER OF ATTORNEY ……………………………………………………… 45

2
 SECTION I: INVITATION TO TENDER

Date: 5th February, 2019

TO: ________________

TENDER FOR PROVISION OF DRILL PIPE INSPECTION SERVICES; REF:

TENDER NO: GDC/EM/OT/029/2018-2019.

Geothermal Development Company Limited (GDC) invites sealed tenders from shortlisted
suppliers for Provision of drill pipe inspection services whose specifications are detailed in this
Tender Document.
Shortlisted firms shall be sent an electronic copy of the tender document on mail including any
other addenda for free of charge or Interested eligible candidates may obtain further information
and inspect the tender document from the office of Manager, Supply Chain at Kawi House Office,
located at South C Bellevue, Off Mombasa Road, Red Cross Road between 9.00am and 4.00pm
during weekdays.

Bidders who receive the electronic tender document on mail MUST forward their particulars
immediately for records and any further tender clarifications and addenda

Tenders must be accompanied by an original bid security of Ksh 100,000 in the form specified
in the tender document.

The completed tenders in plain sealed envelopes clearly marked with Tender No. and Tender
reference name shall be addressed to:

The Managing Director & CEO

Geothermal Development Company Ltd (GDC)
P.O. Box 100746 – 00101
NAIROBI, KENYA
and deposited in the tender box at KAWI House South C, off Mombasa Road, Red Cross Road
Ground Floor, Not later than 27th February, 2019 at 2.00pm ( 1400Hrs).
Prices quoted should be inclusive of all taxes and delivery must be in Kenya Shillings or any
other freely convertible currency and shall remain valid for (120) days from the closing date of
the tender.

Tenders will be opened immediately thereafter in the presence of the tenderers' or their
representatives who choose to attend at GDC Kawi house ground Board Room.
Late Tenders will not be accepted

MANAGER SUPPLY CHAIN

3
SECTION II – INSTRUCTIONS TO TENDERERS

TABLE OF CONTENTS. Page

2.1 Eligible Tenderers …………………………………………………6

2.2 Cost of tendering ………………………………………………….6
2.3 Contents of tender documents ……………………………………...7
2.4 Clarification of Tender documents …………………………………7
2.5 Amendement of tender documents …………………………………8
2.6 Language of tenders ………………………………………………..8
2.7 Documents comprising the tender ………………………………….8
2.8 Form of tender ……………………………………………………...9
2.9 Tender prices ……………………………………………………….9
2.10 Tender currencies …………………………………………………..9
2.11 Tenderers eligibility and qualifications …………………………….9
2.12 Tender security …………………………………………………….10
2.13 Validity of tenders …………………………………………………11
2.14 Format and signing of tenders ……………………………………...11
2.15 Sealing and marking of tenders …………………………………….12
2.16 Deadline for submission of tenders ………………………………...12
2.17 Modification and withdrawal of tenders …………………………....12
2.18 Opening of tenders ………………………………………………….13
2.19 Clarification of tenders ……………………………………………..14
2.20 Preliminary Examination …………………………………………...14
2.21 Conversion to other currencies ……………………………………..15
2.22 Evaluation and comparison of tenders ……………………………...15
2.23 Contacting the procuring entity ……………………………………16
2.24 Post-qualification …………………………………………………..17
2.25 Award criteria ……………………………………………………...17
2.26 Procuring entities right to vary quantities ………………………….17
2.27 Procuring entities right to accept or reject any or all tenders ………17
2.28 Notification of award ……………………………………………....18
2.29 Signing of Contract ………………………………………………...18
2.30 Performance security ………………………………………………19
2.31 Corrupt or fraudulent practices …………………………………….19

4
SECTION II: INSTRUCTIONS TO TENDERERS

2.1 Eligible tenderers

2.1.1. This Invitation to tender is open to all tenderers eligible as described in the instructions to
tenderers. Successful tenderers shall provide the services for the stipulated duration from
the date of commencement (hereinafter referred to as the term) specified in the tender
documents.

2.1.2. The procuring entity’s employees, committee members, board members and their relative
(spouse and children) are not eligible to participate in the tender unless where specially
allowed under section 131 of the Act.

2.1.3. Tenderers shall provide the qualification information statement that the tenderer
(including all members, of a joint venture and subcontractors) is not associated, or have
been associated in the past, directly or indirectly, with a firm or any of its affiliates which
have been engaged by the Procuring entity to provide consulting services for the
preparation of the design, specifications, and other documents to be used for the
procurement of the services under this Invitation for tenders.

2.1.4. Tenderers involved in corrupt or fraudulent practices or debarred from participating in

public procurement shall not be eligible.

2.2 Cost of tendering

2.2.1 The Tenderer shall bear all costs associated with the preparation and submission of its
tender, and the procuring entity, will in no case be responsible or liable for those costs,
regardless of the conduct or outcome of the tendering process.

2.2.2 The price to be charged for the tender document shall not exceed Kshs.1,000 (Kenya
Shillings One Thousand) or free of charge for bidders that download the tender from
GDC Website or IFMIS Portal.

2.2.3 The procuring entity shall allow the tenderer to review the tender document free of
charge before purchase.

2.3 Contents of tender documents

2.3.1. The tender document comprises of the documents listed below and addenda issued in
accordance with clause 6 of these instructions to tenders

i) Instructions to tenderers
ii) General Conditions of Contract
iii) Special Condtions of Contract
iv) Schedule of Requirements
v) Details of service

5
 vi) Form of tender
vii) Price schedules
viii) Contract form
ix) Confidential business questionnaire form
x) Tender security form
xi) Performance security form
xii) Manufacturers authorization form
xiii) Declaration form

2.3.2. The Tenderer is expected to examine all instructions, forms, terms, and specifications in
the tender documents. Failure to
furnish all information required by the tender documents or to submit a tender not
substantially responsive to the tender documents in every respect will be at the tenderers
risk and may result in the rejection of its tender.

2.4 Clarification of Documents

2.4.1. A prospective candidate making inquiries of the tender

document may notify the Procuring entity in writing or by post, fax or email at the
entity’s address indicated in the Invitation for tenders. The Procuring entity will respond
in writing to any request for clarification of the tender documents, which it receives no
later than seven (7) days prior to the deadline for the submission of tenders, prescribed by
the procuring entity. Written copies of the Procuring entities response (including an
explanation of the query but without identifying the source of inquiry) will be sent to all
prospective tenderers who have received the tender documents”

2.4.2. The procuring entity shall reply to any clarifications sought by the tenderer within 3 days
of receiving the request to enable the tenderer to make timely submission of its tender

2.5 Amendment of documents

2.5.1. At any time prior to the deadline for submission of tenders, the Procuring entity, for any
reason, whether at its own initiative or in response to a clarification requested by a
prospective tenderer, may modify the tender documents by issuing an addendum.

2.5.2. All prospective tenderers who have obtained the tender documents will be notified of the
amendment by post, fax or email and such amendment will be binding on them.
2.5.3. In order to allow prospective tenderers reasonable time in which to take the amendment
into account in preparing their tenders, the Procuring entity, at its discretion, may extend
the deadline for the submission of tenders.
2.6 Language of tender
2.6.1. The tender prepared by the tenderer, as well as all correspondence and documents
relating to the tender exchanged by the tenderer and the Procuring entity, shall be written
in English language. Any printed literature furnished by the tenderer may be written in
another language provided they are accompanied by an accurate English translation of the
relevant passages in which case, for purposes of interpretation of the tender, the English
translation shall govern.

6
2.7 Documents Comprising the Tender
The tender prepared by the tenderer shall comprise the following components:

(a) A Tender Form and a Price Schedule completed in accordance with paragraph
9, 10 and 11 below.

(b) Documentary evidence established in accordance with Clause 2.11 that the
tenderer is eligible to tender and is qualified to perform the contract if its tender is
accepted;

(c) Tender security furnished is in accordance with Clause 2.12

(d)Confidential business questionnaire

2.8 Form of Tender

2.8.1 The tenderers shall complete the Form of Tender and the appropriate Price Schedule
furnished in the tender documents, indicating the services to be performed.

2.9 Tender Prices

2.9.1 The tenderer shall indicate on the Price schedule the unit prices where applicable and
total tender prices of the services it proposes to provide under the contract.

2.9.2 Prices indicated on the Price Schedule shall be the cost of the services quoted including
all customs duties and VAT and other taxes payable:

2.9.3 Prices quoted by the tenderer shall remain fixed during the term of the contract unless
otherwise agreed by the parties. A tender submitted with an adjustable price quotation
will be treated as non-responsive and will be rejected, pursuant to paragraph 2.22.

2.9.4 Contract price variations shall not be allowed for contracts not exceeding one year (12
months)

2.9.5 Where contract price variation is allowed, the variation shall not exceed 10% of the
original contract price.

2.9.6 Price variation requests shall be processed by the procuring entity within 30 days of
receiving the request.

2.10 Tender Currencies

2.10.1 Prices shall be quoted in Kenya Shillings unless otherwise specified in the appendix to in
Instructions to Tenderers

2.11 Tenderers Eligibility and Qualifications.

2.11.1 Pursuant to Clause 2.1 the tenderer shall furnish, as part of its tender, documents
establishing the tenderers eligibility to tender and its qualifications to perform the
contract if its tender is accepted.

7
2.11.2 The documentary evidence of the tenderers qualifications to perform the contract if its
tender is accepted shall establish to the Procuring entity’s satisfaction that the tenderer
has the financial and technical capability necessary to perform the contract.

2.12 Tender Security

2.12.1 The tenderer shall furnish, as part of its tender, a tender security for the amount and form
specified in the Invitation to tender.

2.12.2 The tender security shall be in the amount not exceeding Ksh 100,000.

2.12.2 The tender security is required to protect the Procuring entity against the risk of
Tenderer’s conduct which would warrant the security’s forfeiture, pursuant to paragraph
2.12.7

2.12.3 The tender security shall be denominated in a Kenya Shillings or in another freely
convertible currency and shall be in the form of:

a) A bank guarantee.
b) Such insurance guarantee approved by the Authority.

2.12.4 Any tender not secured in accordance with paragraph 2.12.1 and 2.12.3 will be rejected
by the Procuring entity as non-responsive, pursuant to paragraph 2.20

2.12.5 Unsuccessful tenderer’s security will be discharged or returned as promptly as possible

but not later than thirty (30) days after the expiration of the period of tender validity
prescribed by the procuring entity.

2.12.6 The successful tenderer’s tender security will be discharged upon the tenderer signing the
contract, pursuant to paragraph 2.29, and furnishing the performance security, pursuant to
paragraph 2.30.

2.12.7 The tender security may be forfeited:

(a) If a tenderer withdraws its tender during the period of tender validity specified by the
procuring entity on the
Tender Form; or
(b) In the case of a successful tenderer, if the tenderer fails:
(i) to sign the contract in accordance with paragraph 30
or
(ii) to furnish performance security in accordance with paragraph 31.
(c) If the tenderer rejects, correction of an error in the tender.

2.13 Validity of Tenders

2.13.1 Tenders shall remain valid for 120 days or as specified in the invitation to tender after
date of tender opening prescribed by the Procuring entity, pursuant to paragraph 2.18. A
tender valid for a shorter period shall be rejected by the Procuring entity as
nonresponsive.

8
2.13.2 In exceptional circumstances, the Procuring entity may solicit the Tenderer’s consent to
an extension of the period of validity. The request and the responses thereto shall be
made in writing. The tender security provided under paragraph 2.12 shall also be suitably
extended. A tenderer may refuse the request without forfeiting its tender security. A
tenderer granting the request will not be required nor permitted to modify its tender.

2.14 Format and Signing of Tender

2.14.1 The tenderer shall prepare two copies of the tender, clearly / marking each “ORIGINAL
TENDER” and “COPY OF TENDER,” as appropriate. In the event of any discrepancy
between them, the original shall govern.
N/B All pages of both (Original and Copy) of the tender documents MUST be serialized
& initialized by the tenderer including the attachments to the bid document.

2.14.2 The original and all copies of the tender shall be typed or written in indelible ink and
shall be signed by the tenderer or a person or persons duly authorized to bind the tenderer
to the contract. All pages of the tender, except for unamended printed literature, shall be
initialed by the person or persons signing the tender.

2.14.3 The tender shall have no interlineations, erasures , or overwriting except as necessary to
correct errors made by the tenderer, in which case such corrections shall be initialed by
the person or persons signing the tender.

2.15 Sealing and Marking of Tenders

2.15.1 The tenderer shall seal the original and each copy of the tender in separate envelopes,
duly marking the envelopes as “ORIGINAL” and “COPY.” The envelopes shall then be
sealed in an outer envelope.
The inner and outer envelopes shall:
(a) be addressed to the Procuring entity at the address given in the invitation to tender

(b) bear, tender number and name in the invitation to tender and the words: “DO NOT
OPEN BEFORE Wednesday, 27th February, 2019 at 14.00HRS,”

2.15.3 The inner envelopes shall also indicate the name and address of the tenderer to enable the
tender to be returned unopened in case it is declared “late”. —

2.15.4 If the outer envelope is not sealed and marked as required by paragraph 2.15.2, the
Procuring entity will assume no responsibility for the tender’s misplacement or premature
opening.

2.16 Deadline for Submission of Tenders

2.16.1 Tenders must be received by the Procuring entity at the address

specified under paragraph 2.15.2 no later than Wednesday, 27th January, 2019 at 2.00
PM (14.00HRS.)

9
2.16.2 The procuring entity may, at its discretion, extend this deadline for the submission of
tenders by amending the tender documents in accordance with paragraph 6, in which case
all rights and obligations of the procuring entity and candidates previously subject to the
deadline will thereafter be subject to the deadline as extended.

2.16.3 Bulky tenders which will not fit in the tender box shall be received by the procuring entity
as provided for in the appendix.

2.17 Modification and withdrawal of tenders

2.17.1 The tenderer may modify or withdraw its tender after the tender’s submission, provided
that written notice of the modification , including substitution or withdrawal of the
tender’s is received by the procuring entity prior to the deadline prescribed for the
submission of tenders.

2.17.2 The Tenderer’s modification or withdrawal notice shall be prepared, sealed, marked, and
dispatched in accordance with the provisions of paragraph 2.15. A withdrawal notice may
also be sent by cable, but followed by a signed confirmation copy, postmarked not later
than the deadline for submission of tenders.

2.17.3 No tender may be modified after the deadline for submission of tenders.

2.17.4 No tender may be withdrawn in the interval between the deadline for submission of
tenders and the expiration of the period of tender validity specified by the tenderer on the
Tender Form. Withdrawal of a tender during this interval may result in the Tenderer’s
forfeiture of its tender security, pursuant to paragraph 2.12.7.

2.17.5 The procuring entity may at any time terminate procurement proceedings before contract
award and shall not be liable to any person for the termination.

2.17.6 The procuring entity 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.

2.18 Opening of Tenders

2.18.1 The Procuring entity will open all tenders in the presence of
tenderers’ representatives who choose to attend, at 14.00HRS, Wednesday 27th
February, 2019 and in the location specified in the invitation to tender. The tenderers’
representatives who are present shall sign a register evidencing their attendance.

2.18.3 The tenderers’ names, tender modifications or withdrawals, tender prices, discounts, and
the presence or absence of requisite tender security and such other details as the
Procuring Entity, at its discretion, may consider appropriate, will be announced at the
opening.

2.18.4 The procuring entity will prepare minutes of the tender opening which will be submitted
to the tenderers that signed the tender opening register and will have made the request.

10
2.19 Clarification of tenders

2.19.1 To assist in the examination, evaluation and comparison of tenders the procuring entity
may at its discretion, ask the tenderer for a clarification of its tender. The request for
clarification and the response shall be in writing, and no change in the prices or substance
shall be sought, offered, or permitted.

2.19.2 Any effort by the tenderer to influence the procuring entity in the procuring entity’s
tender evaluation, tender comparison or contract award decisions may result in the
rejection of the tenderers tender.

Comparison or contract award decisions may result in the rejection of the tenderers’
tender.

2.20 Preliminary Examination and Responsiveness

2.20.1 The Procuring entity will examine the tenders to determine whether they are complete,
whether any computational errors have been made, whether required securities have been
furnished whether the documents have been properly signed, and whether the tenders are
generally in order.

2.20.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy
between the unit price and the total price that is obtained by multiplying the unit price
and quantity, the unit price shall prevail, and the total price shall be corrected. if the
candidate does not accept the correction of the errors, its tender will be rejected, and its
tender security may be forfeited. If there is a discrepancy between words and figures, the
amount in words will prevail.

2.20.3 The Procuring entity may waive any minor informality or nonconformity or irregularity
in a tender which does not constitute a material deviation, provided such waiver does not
prejudice or affect the relative ranking of any tenderer.

2.20.4 Prior to the detailed evaluation, pursuant to paragraph 23, the Procuring entity will
determine the substantial responsiveness of each tender to the tender documents. For
purposes of these paragraphs, a substantially responsive tender is one which conforms to
all the terms and conditions of the tender documents without material deviations. The
Procuring entity’s determination of a tender’s responsiveness is to be based on the
contents of the tender itself without recourse to extrinsic evidence.

2.20.5 If a tender is not substantially responsive, it will be rejected by the Procuring entity and
may not subsequently be made responsive by the tenderer by correction of the
nonconformity.

2.21 Conversion to a single currency

2.21.1 Where other currencies are used, the procuring entity will convert those currencies to
Kenya shillings using the selling exchange rate on the date of tender closing provided by
the central bank of Kenya.

11
2.22 Evaluation and comparison of tenders.

2.22.1 The procuring entity will evaluate and compare the tenders which have been determined
to be substantially responsive, pursuant to paragraph 2.20

2.22.2 The comparison shall be of the price including all costs as well as duties and taxes
payable on all the materials to be used in the provision of the services.

2.22.3 The Procuring entity’s evaluation of a tender will take into account, in addition to the
tender price, the following factors, in the manner and to the extent indicated in
paragraph 2.22.4 and in the technical specifications:
(a) Operational plan proposed in the tender;
(b) Deviations in payment schedule from that specified in the Special Conditions of
Contract;

2.22.4 Pursuant to paragraph 22.3 the following evaluation methods will be applied:

(a) Operational Plan.

The Procuring entity requires that the services under the Invitation for Tenders shall be
performed at the time specified in the Schedule of Requirements. Tenders offering to
perform longer than the procuring entity’s required delivery time will be treated as non-
responsive and rejected.

(b) Deviation in payment schedule.

Tenderers shall state their tender price for the payment on a schedule outlined in the
special conditions of contract. Tenders will be evaluated on the basis of this base price.
Tenderers are, however, permitted to state an alternative payment schedule and indicate
the reduction in tender price they wish to offer for such alternative payment schedule.
The Procuring entity may consider the alternative payment schedule offered by the
selected tenderer.

2.22.5 The tender evaluation committee shall evaluate the tender within 30 days from the date of
opening the tender.

2.22.6 To qualify for contract awards, the tenderer shall have the following:-

(a) Necessary qualifications, capability experience, services, equipment and

facilities to provide what is being procured.

(b) Legal capacity to enter into a contract for procurement

12
 (c) Shall not be insolvent, in receivership, bankrupt or in the process of being
wound up and is not the subject of legal proceedings relating to the
foregoing

(d) Shall not be debarred from participating in public procurement.

2.23. Contacting the procuring entity

2.23.1 Subject to paragraph 2.19, no tenderer shall contact the procuring entity on any matter
relating to its tender, from the time of the tender opening to the time the contract is
awarded.

2.23.2 Any effort by a tenderer to influence the procuring entity in its decisions on tender
evaluation tender comparison or contract award may result in the rejection of the
tenderers tender.

2.24 Award of Contract

a) Post qualification

2.24.1 In the absence of pre-qualification, the Procuring entity will determine to its satisfaction
whether the tenderer that is selected as having submitted the lowest evaluated responsive
tender is qualified to perform the contract satisfactorily.

2.24.2 The determination will take into account the tenderer’s financial and technical capabilities.
It will be based upon an examination of the documentary evidence of the tenderers
qualifications submitted by the tenderer, pursuant to paragraph 2.1.2, as well as such other
information as the Procuring entity deems necessary and appropriate.

2.24.3 An affirmative determination will be a prerequisite for award of the contract to the
tenderer. A negative determination will result in rejection of the Tenderer’s tender, in
which event the Procuring entity will proceed to the next lowest evaluated tender to make
a similar determination of that Tenderer’s capabilities to perform satisfactorily.

b) Award Criteria

2.24.4 Subject to paragraph 2.29 the Procuring entity will award the contract to the successful
tenderer whose tender has been determined to be substantially responsive and has been
determined to be the lowest evaluated tender, provided further that the tenderer is
determined to be qualified to perform the contract satisfactorily.

2.24.5 The procuring entity reserves the right to accept or reject any tender and to annul the
tendering process and reject all tenders at any time prior to contract award, without
thereby incurring any liability to the affected tenderer or tenderers or any obligation to
inform the affected tenderer or tenderers of the grounds for the procuring entity’s action.
If the procuring entity determines that none of the tenderers is responsive; the procuring
entity shall notify each tenderer who submitted a tender.

13
2.24.6 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
considered for debarment from participating in future public procurement.

2.25 Notification of award

2.25.1 Prior to the expiration of the period of tender validity, the Procuring
entity will notify the successful tenderer in writing that its tender has
been accepted.

2.25.2 The notification of award will signify the formation of the Contract subject to the signing
of the contract between the tenderer and the procuring entity pursuant to clause 2.29.
Simultaneously the other tenderers shall be notified that their tenders have not been
successful.

2.25.3 Upon the successful Tenderer’s furnishing of the performance security

pursuant to paragraph 31, the Procuring entity will promptly notify each
unsuccessful Tenderer and will discharge its tender security, pursuant to
paragraph 2.12

2.26 Signing of Contract

2.26.1 At the same time as the Procuring entity notifies the successful tenderer
that its tender has been accepted, the Procuring entity will simultaneously inform the
other tenderers that their tenders have not been successful.

2.26.2 Within fourteen (14) days of receipt of the Contract Form, the successful
tenderer shall sign and date the contract and return it to the Procuring entity.

2.26.3 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.

2.27 Performance Security

2.27.1 Within thirty (30) days of the receipt of notification of award from the Procuring entity,
the successful tenderer shall furnish the performance security in accordance with the
Conditions of Contract, in the Performance Security Form provided in the tender
documents, or in another form acceptable to the Procuring entity.

2.27.2 Failure of the successful tenderer to comply with the requirement of paragraph 2.29 or
paragraph 2.30.1 shall constitute sufficient grounds for the annulment of the award and
forfeiture of the tender security, in which event the Procuring entity may make the award
to the next lowest evaluated or call for new tenders.

2.28 Corrupt or Fraudulent Practices

2.28.1 The Procuring entity requires that tenderers observe the highest
standard of ethics during the procurement process and execution of

14
 contracts. A tenderer shall sign a declaration that he has not and will not be involved in
corrupt or fraudulent practices.

2.28.2 The procuring entity will reject a proposal for award if it determines that the tenderer
recommended for award has engaged in corrupt or fraudulent
practices in competing for the contract in question;

2.28.3 Further, a tenderer who is found to have indulged in corrupt or fraudulent practices risks
being debarred from participating in public procurement in Kenya.

15
 Appendix to instructions to tenderers

The following information for procurement of services shall complement or amend the
provisions of the instructions to tenderers. Wherever there is a conflict between the provisions
of the instructions to tenderers and the provisions of the appendix, the provisions of the
appendix herein shall prevail over those of the instructions to tenderers

Instructions Particulars of appendix to instructions to tenderers

to tenderers
2.1 The tender is open to all eligible firms for provision of tubular inspection
services.
2.4.1 A prospective tenderer requiring any clarification of the tender document may
notify GDC in writing (e-mail in PDF format or by facsimile) through the
following address:
One copy to: -
Manager, Supply Chain,
Geothermal Development Company Limited,
KAWI House,
P.O. Box 100746 – 00101, Nairobi.
E-mail: [email protected]
[email protected], [email protected]
And one copy to: -
General Manager, Drilling Operations
Geothermal Development Company Limited,
E-mail: [email protected] cc: [email protected]
GDC will respond in writing (e-mail in PDF format) to any request received at
least seven (7) days prior to the deadline for the submission of tenders.
NB: Any request for clarification must be in the firm’s letterhead and signed,
and must be in reference to the specific parts of the tender document properly
numbered.
2.10 The tender Prices shall be quoted in Kenya Shillings or any other freely
convertible currency
2.12 The tenderer shall furnish a tender security in the amount of KSh. 100,000 in
the form of insurance/bank guarantee valid for a period of 150 days from the
date of tender opening.
2.13.1 The tender validity period is 120 days from the date of tender opening. A
tender valid for a shorter period shall be considered as non-responsive and shall
be rejected.
2.16.1 The tender closing/opening date is on Wednesday 27th February, 2019 at
2.00Pm (14.00HRS)
2.20 The Mandatory requirements that will determine a bidders responsiveness
include:-
a) Dully filled, Signed & Stamped Tender Form & Price Schedules.
b) Tender Security in the format provided in the tender document and valid
for at least thirty (30) days beyond the tender validity period i.e 150

16
 days from the date of tender opening.
c) Evidence of incorporation in Kenya i.e. Certificate of Incorporation/
Registration in Kenya
d) Tax compliance certificate valid at the time of opening. The validity of
the Tax certificate shall be confirmed from KRA Tax Checker
e) Attach a copy of Valid PIN Certificate
f) Attach Copy of Valid Single Business Permit
g) Duly Filled Confidential Business Questionnaire.
h) Duly Filled signed & stamped Declaration of Undertaking
i) Duly Authorized power of attorney
NB: Bidders who will not meet the above requirement will be declared
non-responsive
2.24 In the Technical evaluation stage,
Schedule A: Criteria for evaluation is as specified in table 1 – below
Pass Mark: 70 marks

Bidders that score 70 marks and above shall have their financial bids evaluated

Bids not meeting the technical score will be declared non-responsive and will
not be evaluated further.
Bids responsive at the technical evaluation stage will be evaluated at the
financial stage.
In the financial evaluation stage- in this stage; the following will be assessed.
a) The bids will be checked for costing of all items.
b) No correction of arithmetic errors- The tender sum as submitted and
read out during the tender opening shall be absolute and final and shall
not be the subject of correction, adjustment or amendment in any way
by any person or entity.
c) Compliance to GDC payments terms as per section IV of the tender
document.
The lowest evaluated tenderer for the complete schedule will be recommended
for award.

2.26 The unsuccessful tenderers will be notified on the outcome of the tender at the
same time the successful tenderer is notified
2.27 The performance security shall be 10% of the contract price in the form of a
bank guarantee from a local bank.

17
STAGES OF EVALUATION:
A) Mandatory requirements will determine the satisfactory responsiveness of a tenderer,
failure to meet any of these set requirements as noted hereunder will render a tender non
responsive and will automatically be disqualified.

B) Technical Evaluation: Only bidders who will attain an overall score of 70marks and above
in the technical evaluation will have their financial proposals evaluated.

C) Financial Evaluation Stage award criteria: The lowest evaluated tender for the
complete schedule will be recommended for award.

Table 1: Technical Evaluation Criteria

S. No. Description of Requirements Points

1. The bidder must provide evidence of similar assignment in the last 10 30

years and must attach at least 3 reference letters detailing values of
assignment and contact addresses.

Points shall be distributed as follows:

 More than 10 contracts- 30 Points
 5 - 10 contracts: 20 Points
 2 – 4 contracts: 15 Points
 Less than 2 contracts: 10 points

18
2 Key personnel qualification for the works 20
i. Project manager who must be a certified Inspector/Engineer
ii. Oil Country Tubular Goods (OCTG) inspectors who must have at
least a level II ASNT or PCN certification on Magnetic Particle
Inspection (MPI) and Dye Penetrant and trained from a duly
recognized training.
iii. Ultrasonic Testing Inspector who must have at least a level II
ASNT or PCN certification.
The Project Manager and all inspectors should have at least three 3 years
relevant and specific experience in the inspection of Oil Country Tubular
Goods and other drilling tools. Curriculum Vitae (CVs) for the above
categories of key technical personnel must be provided.
Points shall be distributed as follows:
 More than 5 years: 20
 3 - 4 years: 15
 Below 3 years: 10

3 Equipment and tools availability 30

The Bidder shall demonstrate proof of key equipment and tools
availability listed in the Technical Specifications on section V, subsection
B of the tender document and any other relevant tools and equipment to
enable carry out inspection services as per Subsection A (iii).

Due diligence to gauge the capacity of the bidders on equipment

availability shall be done by the evaluation committee before the
evaluation exercise.

Main Inspection equipment (EMI, MPI, USI): 20 marks

Auxiliary Equipment and Tools as per section V subsection B: 10 marks

4 Inspection Procedure 10

Proposed technical approach and methodology detailing description of

the inspection procedure in the form of Work Instruction Manual (WIM)
or equivalent that the contractor shall utilize in the performance of the
services
5 Work Plan - (including timelines) in responding to the Terms of 10
Reference

19
SECTION III GENERAL CONDITIONS OF CONTRACT

TABLE OF CONTENTS

3.1 Definitions
3.2 Application
3.3 Standards
3.4 Use of contract documents and information
3.5 Patent Rights
3.6 Performance security
3.7 Inspections and tests
3.8 Payment
3.9 Prices
3.10 Assignment
3.11 Termination for default
3.12 Termination for insolvency
3.13 Termination for convenience
3.14 Resolution of disputes
3.15 Governing language
3.16 Force majeure
3.17 Applicable law
3.18 Notices

20
 SECTION III GENERAL CONDITIONS OF CONTRACT
3.1 Definitions

In this contract the following terms shall be interpreted as indicated:

a) “The contract” means the agreement entered into between the Procuring entity and
the tenderer as recorded in the Contract Form signed by the parties, including all
attachments and appendices thereto and all documents incorporated by reference
therein.

b) “The Contract Price” means the price payable to the tenderer under the Contract for
the full and proper performance of its contractual obligations.

c) “The services” means services to be provided by the contractor including materials

and incidentals which the tenderer is required to provide to the Procuring entity under
the Contract.

d) “The Procuring entity” means the organization sourcing for the services under this
Contract.

e) “The contractor means the individual or firm providing the services under this
Contract.

f) “GCC” means general conditions of contract contained in this section

g) “SCC” means the special conditions of contract

h) “Day” means calendar day

3.2 Application
These General Conditions shall apply to the extent that they are not superseded by
provisions of other part of contract.

3.3 Standards

3.3.1 The services provided under this Contract shall conform to the 7 standards mentioned in
the Schedule of requirements

3.5 Patent Right’s

The tenderer shall indemnify the Procuring entity against all third-party claims of
infringement of patent, trademark, or industrial design tights arising from use of the
services under the contract or any part thereof .

3.6 Performance Security

Within thirty (30) days of receipt of the notification of Contract award, the successful
tenderer shall furnish to the Procuring entity the performance security where applicable in
the amount specified in Special Conditions of Contract.

21
3.6.2 The proceeds of the performance security shall be payable to the Procuring entity as
compensation for any loss resulting from the Tenderer’s failure to complete its
obligations under the Contract.

3.6.3 The performance security shall be denominated in the currency of the Contract, or in a
freely convertible currency acceptable to the Procuring entity and shall be in the form of:
a) A bank guarantee.
b) Such insurance guarantee approved by the Authority.

3.6.4 The performance security will be discharged by the procuring entity and returned to the
candidate not later than thirty (30) days following the date of completion of the tenderer’s
performance of obligations under the contract, including any warranty obligations under
the contract.

3.7 Inspections and Tests

3.7.1 The Procuring entity or its representative shall have the right to inspect and/or to test the
services to confirm their conformity to the Contract specifications. The Procuring entity
shall notify the tenderer in writing, in a timely manner, of the identity of any
representatives retained for these purposes.

3.7.2 The inspections and tests may be conducted on the premises of the tenderer or its
subcontractor(s). If conducted on the premises of the tenderer or its subcontractor(s), all
reasonable facilities and assistance, including access to drawings and production data,
shall be furnished to the inspectors at no charge to the Procuring entity.

3.7.3 Should any inspected or tested services fail to conform to the Specifications, the
Procuring entity may reject the services, and the tenderer shall either replace the rejected
services or make alterations necessary to meet specification requirements free of cost to
the Procuring entity.

3.7.4 Nothing in paragraph 3.7 shall in any way release the tenderer from any warranty or other
obligations under this Contract.

3.8 Payment

3.8.1 The method and conditions of payment to be made to the tenderer under this Contract
shall be specified in SCC

3.9 Prices

Prices charged by the contractor for services performed under the Contract shall not, with
the exception of any Price adjustments authorized in SCC , vary from the prices by the
tenderer in its tender or in the procuring entity’s request for tender validity extension as
the case may be. No variation in or modification to the terms of the contract shall be
made except by written amendment signed by the parties.

22
3.10 Assignment

The tenderer shall not assign, in whole or in part, its obligations to perform under this
contract, except with the procuring entity’s prior written consent.

3.10 Termination for Default

The Procuring entity may, without prejudice to any other remedy for breach of Contract,
by written notice of default sent to the tenderer, terminate this Contract in whole or in
part:

a) if the tenderer fails to provide any or all of the services within the period(s) specified
in the Contract, or within any
extension thereof granted by the Procuring entity.

b) if the tenderer fails to perform any other obligation(s) under the Contract.

c) if the tenderer, in the judgment of the Procuring entity has engaged in corrupt or
fraudulent practices in competing for
or in executing the Contract. In the event the Procuring entity terminates the Contract
in whole or in part, it may procure, upon such terms and in such manner as it deems
appropriate, services similar to those undelivered, and the tenderer shall be liable to
the Procuring entity for any excess costs for such similar services.

3.12 Termination of insolvency

The procuring entity may at the anytime terminate the contract by giving written notice to
the contractor if the contractor becomes bankrupt or otherwise insolvent. In this event,
termination will be without compensation to the contractor, provided that such
termination will not produce or affect any right of action or remedy, which has accrued or
will accrue thereafter to the procuring entity.

3.13 Termination for convenience

3.13.1 The procuring entity by written notice sent to the contractor may terminate the contract in
whole or in part, at any time for its convenience. The notice of termination shall specify
that the termination is for the procuring entity convenience, the extent to which
performance of the contractor of the contract is terminated and the date on which such
termination becomes effective.
3.13.2 For the remaining part of the contract after termination the procuring entity may elect to
cancel the services and pay to the contractor on agreed amount for partially completed
services.

3.14 Resolution of disputes

The procuring entity’s and the contractor shall make every effort to resolve amicably by
direct informal negotiations any disagreement or dispute arising between them under or
in connection with the contract.

23
 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
that the dispute be referred for resolution to the formal mechanisms specified in the SCC.

3.15 Governing Language

The contract shall be written in the English language. All correspondence and other
documents pertaining to the contract, which are exchanged by the parties, shall be written
in the same language.

3.16 Force Majeure

The contractor shall not be liable for forfeiture of its performance security, or termination
for default if and to the extent that its delay in performance or other failure to perform its
obligations under the Contract is the result of an event of Force Majeure.

3.17 Applicable Law.

The contract shall be interpreted in accordance with the laws of Kenya unless otherwise
specified in the SCC

3.18 Notices
Any notices given by one party to the other pursuant to this contract shall be sent to the
other party by post or by fax or E-mail and confirmed in writing to the other party’s
address specified in the SCC

A notice shall be effective when delivered or on the notices effective date, whichever is
later.

24
 SECTION IV SPECIAL CONDITIONS OF CONTRACT

4.1 Special conditions of contract shall supplement the general conditions of contract,
wherever there is a conflict between the GCC and the SCC, the provisions of the SCC
herein shall prevail over those in the GCC.

4.2 Special conditions of contract with reference to the general conditions of contract.

REFERENCE OF SPECIAL CONDITIONS OF CONTRACT

GCC
3.1 The Purchaser is The Managing Director, Geothermal Development Company
Ltd (GDC), KAWI HOUSE, SOUTH C Tel: 0719715777/8, 0733602260, P.O
definitions
Box 100746 – 00101, NAIROBI, KENYA, and includes its legal
representatives, successors or assigns.
3.2 Applications The Special Conditions of Contract hereinafter abbreviated as SCC shall form
part of the Conditions of Contract. They are made in accordance with the law
and the Procuring Entity’s guidelines, practices, procedures and working
circumstances. They shall amend, add to and vary the General Conditions of
Contract. Whenever there is a conflict between the GCC and SCC, the
provisions of the SCC shall prevail over those in the GCC
3.6 The Performance Security shall be in the amount of 10% of the Contract
Price in the form of a bank guarantee. The performance Security shall be
Performance
valid for a minimum of 30 days after delivery.
Security
3.10 GDC may without prejudice to any other remedy accruing to it terminate this
Agreement in writing in whole or in part if:-
Termination
(a) By Breach of Contract
i)The Contractor frequently fails to provide services of acceptable standards set
by GDC in the performance of this Agreement and
ii) The Contractor fails to perform any other obligation under this Agreement
(b) By Agreement
Either party may terminate the Agreement by giving to the other party Three
(3) months’ notice in writing or payment of Three (3) months the set fees and
charges in lieu of such notice;
On termination of this Agreement, howsoever terminated, the Contractor shall
be permitted to remove all its equipment which may have been placed by the
Contractor upon the employer’s premises.
3.8 1) The credit period shall be:-
Payment Terms & Geothermal Development Company's payment terms are 30 days upon receipt
Conditions of certified invoices and delivery notes confirming that the invoiced material
has been delivered and is in accordance with the contract
2) Advance Payment
Advance Payment is not applicable.

25
3.13 Prices Prices shall be fixed during the Supplier’s performance of the Contract.

3.14 Resolution of If any dispute or difference of any kind arises between the Parties in
Disputes connection with this Agreement or the breach, termination or validity hereof (a
“Dispute”) it shall be referred to arbitration under the Arbitration Act, 1995
and it is hereby agreed that;
(a) The seat of the arbitration shall be Nairobi, Kenya;
(b) There shall be a panel of three (3) arbitrators. Each Party shall
appoint one arbitrator and the third who shall be the chairman who
shall be appointed by the Institute of Chartered Arbitrators Kenya
Chapter. Provided that any person who has existing or prior
relationship with either Party shall not be eligible for appointment as an
arbitrator except with the consent of both Parties.
(c)The language of the arbitration shall be English;
(d)The award rendered shall apportion the costs of the arbitration;
(e)The award shall be in writing and shall set forth in reasonable detail
the facts of the Dispute and the reasons for the tribunal’s decision
3.18 Notices: Where the Contract provides for Notice to be given to any party, such Notice
shall be well and sufficiently given if given by way of: -
a) A letter posted by registered mail (airmail if international) to the postal
address of the party concerned shown below, or delivered to that party by hand
at the address shown below or;
b) An email sent to the email address of the party concerned shown below.
The addresses of the parties for Notices shall be: -
GDC:
The Managing Director & CEO
Geothermal Development Company Ltd (GDC)
P.O Box 100746 – 00101
Nairobi, Kenya
or such other address as GDC may designate as its address for this purpose by
Notice to the Contractor.

26
SECTION V – SCHEDULE OF REQUIREMENTS & DESCRIPTION OF SERVICE

A. Technical Specifications for Pipe Inspection Services

Introduction
GDC has seven (7) rigs operating in Menengai, Nakuru County and requires the
services of a qualified contractor that is capable of performing inspection of Oil
Country Tubular Goods (OCTG). These services shall be offered at the rig sites in
the Menengai and Baringo Silali geothermal project.
i. The Contractor must have at least one (1) Certified American Society for Non-
destructive Testing (ASNT) or Personal Certification in Non-Destructive Testing
(PCN) level II (PT, MT and UT) with at least three (3) years experience in Oil Country
Tubular Goods (OCTG) Inspection.

ii. All Inspectors should have at least three (3) years relevant and specific experience
in the inspection of Oil Country Tubular Goods and other drilling tools. All inspectors
depending on their types and assigned tasks, must possess the following minimum
requirements and certificates:
a. Oil Country Tubular Goods (OCTG) inspectors must have at least a
level II ASNT or PCN certification on Magnetic Particle Inspection
(MPI), and Dye Penetrant and trained from a duly recognized training
institution;
b. Ultrasonic Testing Inspectors must have at least a level II ASNT or
PCN certification;

iii. The inspection service shall entail;

Description Type of Service

Oil Country Tubular Goods
1 5" OD Standard Drill Pipe TH Hill DS-1 Category 4 Inspection
2 5" OD Heavy Weight Drill
Pipe TH Hill DS-1 Category 3-5 Inspection
3 6½" OD Drill Collar TH Hill DS-1 Category 3-5 Inspection
4 8"OD Drill Collar TH Hill DS-1 Category 3-5 Inspection
5 10" OD Drill Collar TH Hill DS-1 Category 3-5 Inspection
6 5¼ " Hexagonal Kelly TH Hill DS-1 Category 3-5 Inspection
7 Stabilizers TH Hill DS-1 Category 3-5 Inspection
8 Reamers TH Hill DS-1 Category 3-5 Inspection
9 Bit Subs TH Hill DS-1 Category 3-5 Inspection
11 Cross over subs TH Hill DS-1 Category 3-5 Inspection
12 Lifting subs TH Hill DS-1 Category 3-5 Inspection
Tubular Handling Equipment
13 Drill Pipe Elevators Magnetic Particle
Inspection on critical areas

27
 and dimensional check
as per OEM
14 Casing Elevators Magnetic Particle
Inspection on critical areas and Dimensional check as per
OEM

15. Manual Tongs Magnetic Particle

Inspection on critical areas
and Dimensional check as
per OEM
16. Drill Pipe Slips Magnetic Particle
Inspection on critical areas
and Dimensional check as
per OEM
17. Drill Collar Slips Magnetic Particle
Inspection on critical areas
and dimensional check as
per OEM
18. Multipurpose Safety Magnetic Particle
Clamp Inspection on critical areas
and Dimensional Check
per OEM
19. Elevator Links Magnetic Particle
Inspection on critical areas
and Dimensional Check
per OEM
20. Fishing Tools TH Hill DS-1 Category 3-5
Inspection

B. Provision of Equipment and Tools

The contractor shall provide and maintain a minimum of one (1) Inspection Package comprising
of Inspection Equipment and Inspector for the Services. Each inspection package must have each
of the following:

Qty Unit Item Description

Electro-Magnetic Inspection (EMI) complete with accessories for inspecting
1 Unit the following drill pipes:
●
3½ inch Drill Pipe : 3½ inch Pipe OD, 5 inch Tool joint OD
●
5 inch Drill Pipe : 5 inch Pipe OD, 6⅝ inch Tool joint OD
Magnetic Particle Inspection (MPI / MT) equipment which shall be calibrated
1 set every after six (6) months with the following accessories:
● AC-energized yoke, 220V; capable of lifting 4.5 kg (10.0 lbs) complete with
calibration block

28
 ● DC-energized yoke capable of lifting 18 kg (40.0 lbs) complete with
calibration
block
● Magnetic field indicator/pocket-size meter used to indicate residual
magnetism
remaining in part after magnetization in compliance with ASTM E709-
08,
ASTM E1444;
● Pie field indicator, used to aid in determining the direction of magnetic
fields, in compliance with ASTM E709-08, ASTM E1444

● Other accessories necessary to complete the inspection

procedure;

Digital Ultrasonic Thickness (UT) Gauge which can detect thickness of

0.79mm
(0.031‖) ± 0.25mm (0.010‖) complete with dual transducer probe (2.0 to 7.5
Mhz)
1 Unit and step wedge calibration block. Shall be calibrated before use
Black or blue light which shall be capable of providing wavelengths at or near
1 Unit 365nm and a minimum intensity of 1000 µW/cm2, 220 V
1 Unit ultraviolet meter
1 unit White light meter
1 Set Penetrant Test (PT) equipment and accessories such as:
● Solvent removable liquid penetrant;
●Penetrant cleaner
●Penetrant developer
API profile gauges and visual thread evaluating tools covering all rotary
1 Set connections and proprietary
gauges for specialized connection such as VAM-EIS
1 Set Depth gauge
1 Set Lead gauge
1 Set Tool joint identifier;
1 Set Rotary brushes for internal cleaning of Tubular goods
1 Set Outside Diameter (OD) calliper
1 Set Inside Diameter (ID) calliper
1 Set Vernier calliper
1 Set Steel rule (graduation: ⅛ inch, 1/16 inch, 1/32 inch and 1/64 inch)
1 Set Inspection mirror
1 Set Metal stencil (size ¼ inch)
1 Set Tally meter
Refacing tool, should be able to resurface the shoulder evenly to ensure flat
shoulder and no visible
1 Set gap during straight edge inspection

29
 Angle grinder and straight grinder with 7 inch and 4 inch disc with dead man’s
1 Set switch features complete

with accessories, 220V;

Certified American Society for Non-destructive Testing (ASNT) or Personal
Certification in Non-
Destructive Testing (PCN) level II (PT, MT, UT) with at least three (3) years’
experience in Oil
1 Set Country Tubular Goods (OCTG) Inspection
Other necessary equipment to complete the inspection services for
1 Lot OCTG inspection

The Contractor shall provide their own means of transport for their inspection teams. GDC shall
not provide any transport services.

Duties and responsibilities of contractor

The Contractor shall warrant and undertake that:

1. The inspection services are based on appropriate inspection standards such as API RP7G-
2 and latest edition of Tom H. Hill (TH Hill) DS-1 Drill Stem Inspection, AWS WII:2010
and appropriate ASME and ASTM Standards. Contractor also warrants defective work
and shall remedy or rectify such goods at no cost to GDC.

2. It is ready and prepared to mobilize, at Contractor’s cost the Inspection personnel.

3. It will submit a comprehensive technical description of the inspection procedure it shall

utilize in the form of Work Instruction Manual (WIM) or equivalent in the performance
of the services, which shall be subjected to post evaluation and approval of the
Company’s authorized representative.

4. It will submit an Inspection report for which Company shall sign-off and issue Certificate
of Acceptance (or equivalent to attest the successful completion of the Services.

5. It will provide qualified and competent Inspectors to operate and maintain the Inspection
Equipment and perform services that include the following:
a. To use and calibrate Contractor’s supplied Inspection Equipment;

b. To identify and analyze specific Tubular Goods and other tools damage problems;

c. To coordinate with Company's authorized representative on the details of the Services;

d. To recommend action plans on the conduct of inspection;

e. To supervise, service, maintain and repair the Inspection Equipment provided under
this Contract;

30
 f. To submit an Inspection Report at a maximum of 5 days after completion of the
Services;
g. To ensure sound practices are demonstrated and followed during goods inspection; and
h. To perform other services related to the Tubular Goods and other tools inspection as
instructed by the Company’s authorized representative and within the limits indicated
in the Contractor's operation manual and covered under this contract.
6. The contractor will shoulder the maintenance and all attendant costs related to
Contractor-supplied equipment, such as, but not limited to trucking, parts replacement
and personnel movement.
7. It will provide power required for the inspection exercise (portable generator and fuel).
8. It shall provide a fork loader that will be used for tubular handling during inspection.
GDC will provide a tubular yard and any agreed working space.
9. The contractor shall provide diesel for cleaning, thread lubricants, marine coat, rust
preventive coating and similar coating materials needed to perform the Services;
10. The contractor shall provide the following services, facilities and properties in the
performance of the Services:
a. On the contractor’s account, all travel, food and accommodation costs for its
personnel.
b. All unskilled labor (including their food, lodging, and other incidental costs at
Project Site/s) that the Inspectors may require, in the discharge of his duties, subject
to prior approval of Company;
c. Transport of equipment, consumables and personnel within and outside GDC
premises at its own cost;
d. All regulatory permits that are required to transport contractor’s supplied
Inspection Equipment should there be any special requirement to transport such
Inspection Equipment;
e. All regulatory permits, certificates and licenses necessary to perform the services
required for the engagement;

f. The contractor shall comply with the work permit system of GDC.
13. It shall provide the following equipment to its own personnel and area of operational
control:

31
Personal Protective Equipment

Item Description
Safety Glass - must be compliant to ANSI Z87
Safety Goggles - must be compliant to ANSI Z87 (as necessary)
Face Shield
Hard Hat – must be compliant to ANSI Z89
Safety Shoes – must be steel toe
Polka Dot Gloves
Ear Plugs – must be compliant to ANSI S3.19-1974
Coverall – must have reflective strips around shoulders, arms and legs

Safety Equipment
Qty Unit Item Description
1 Unit First Aid Kit
1 Unit Fire Extinguisher
1 Lot Spill Pallet and Spill Kit
1 Unit Eye wash station

32
SCHEDULE OF QUANTITIES

SCHEDULE A: INSPECTION SERVICE

Description Type of Service Unit Quantity

TH Hill DS-1 Category 4
1 5" OD Drill Pipe Piece 3,000
Inspection
2 5" OD Heavy Weight TH Hill DS-1 Category 3-5 Piece 500
Drill Pipes Inspection
TH Hill DS-1 Category 3-5
3 6½" OD Drill Collar Piece 300
Inspection
TH Hill DS-1 Category 3-5
4 8" OD Drill Collar Piece 300
Inspection Inspection
TH Hill DS-1 Category 3-5
5 10" OD Drill Collar Piece 52
Inspection
5¼" Hexagonal TH Hill DS-1 Category 3-5
6 Piece 14
Kelly Inspection
TH Hill DS-1 Category 3-5
7 Stabilizers Piece 130
Inspection
TH Hill DS-1 Category 3-5
8 Reamers Piece 12
Inspection
TH Hill DS-1 Category 3-5
9 Bit Subs Piece 52
Inspection
TH Hill DS-1 Category 3-5
Cross over subs Piece 600
10 Inspection
TH Hill DS-1 Category 3-5
Lifting subs & caps Piece 48
11 Inspection
Tubular Handling Equipment
12 Drill Pipe Elevators Magnetic Particle Piece 14
Inspection on critical areas
and dimensional check
as per OEM
13 Casing Elevators Magnetic Particle Piece 28
Inspection on critical areas
and dimensional check as
per OEM
Manual Tongs Magnetic Particle
14 Inspection on critical areas Piece 14
and Dimensional check as
per OEM

15 Drill Pipe Slips Magnetic Particle Piece 28

Inspection on critical areas
and Dimensional Check
per OEM

33
16 Drill Collar Slips Magnetic Particle Piece 28
Inspection on critical areas
and Dimensional Check
per OEM
17 Multipurpose Safety Magnetic Particle Piece 14
Clamp Inspection on critical areas
and Dimensional Check
per OEM
18 Elevator Links Magnetic Particle Piece 7
Inspection on critical areas
and Dimensional Check
per OEM
19 Fishing Tools TH Hill DS-1 Category 3-5 Piece 20
Inspection

34
SECTION VI - PRICE SCHEDULE

SCHEDULE A: INSPECTION SERVICE

Unit Total Cost

Description Type of Service Unit Quantity Price
TH Hill DS-1
1 5" OD Drill Pipe Category 4 Inspection Piece 3,000
TH Hill DS-1
2 5" OD Heavy Piece 500
Category 3-5
Weight Drill Pipes Inspection
TH Hill DS-1
6-1/2"‖ OD Drill
3 Category 3-5 Piece 300
Collar Inspection
TH Hill DS-1
4 8" OD Drill Collar Category 3-5 Piece 300
Inspection Inspection
TH Hill DS-1
10" OD Drill
5 Category 3-5 Piece 52
Collar Inspection
TH Hill DS-1
5¼" Hexagonal
6 Category 3-5 Piece 14
Kelly Inspection
TH Hill DS-1
7 Stabilizers Category 3-5 Piece 130
Inspection
TH Hill DS-1
8 Reamers Category 3-5 Piece 12
Inspection
TH Hill DS-1
9 Bit Subs Category 3-5 Piece 52
Inspection
TH Hill DS-1
Cross over subs Category 3-5 Piece 600
10 Inspection
48
Lifting subs &
TH Hill DS-1 Piece
caps Category 3-5
11 Inspection
Tubular Handling Equipment
12 Drill Pipe Magnetic Particle Piece 14
Inspection on critical
Elevators
areas
and dimensional check
as per OEM

35
 Magnetic Particle
13 Casing Elevators Inspection on critical Piece 28
areas
and dimensional check
as
per OEM
Manual Tongs Magnetic Particle
Inspection on critical
14 Piece 14
areas
and Dimensional
check as
per OEM
Magnetic Particle
15 Drill Pipe Slips Inspection on critical Piece 14
areas
and Dimensional
Check
per OEM
Magnetic Particle
16 Drill Collar Slips Inspection on critical Piece 14
areas
and Dimensional
Check
per OEM
Multipurpose Magnetic Particle
17 Inspection on critical Piece 14
Safety
areas
Clamp and Dimensional
Check
per OEM
Magnetic Particle
18 Elevator Links Inspection on critical Piece 7
areas
and Dimensional
Check
per OEM
TH Hill DS-1
19 Fishing Tools Piece 20
Category 3-5
Inspection

TOTAL COST

36
16% VAT

Grand Total Cost inclusive of VAT Transferred to tender form

NB:
a) Prices will be fixed during the contract period
No correction of arithmetic errors.
The tender sum as submitted and read out during the tender opening shall be absolute and
final and shall not be the subject of correction, adjustment or amendment in any way by
any person or entity.

Tenderer’s Name (Company) ________________________________________________

Signature & Rubber stamp: _________________________________________________

Date:____________________________________________________________

37
SECTION VII- STANDARD FORMS

Notes on standard forms

1. The tenderer shall complete and submit with its tender the form of tender and price
schedules pursuant to instructions to tenderers clause 9 and in accordance with the
requirements included in the special conditions of contract.

2. When requested by the appendix to the instructions to tenderers, the tenderer should
provide the tender security, either in the form included herein or in another form
acceptable to the procuring entity pursuant to instructions to tenderers clause 12.3

3. The contract form, the price schedules and the schedule of requirements shall be deemed
to form part of the contract and should be modifies accordingly at the time of contract
award to incorporate corrections or modifications agreed by the tenderer and the
procuring entity in accordance with the instructions to tenderers or general conditions of
contract.

4. The performance security and bank guarantee for advance payment forms should not be
completed by the tenderers at the time of tender preparation. Only the successful tenderer
will be required to provide performance/entity and bank guarantee for advance payment
forms in accordance with the forms indicated herein or in another form acceptable to the
procuring entity and pursuant to the – conditions of contract.

STANDARD FORMS

1. Form of tender
2. Price schedules
3. Contract form
4. Confidential Questionnaire form
5. Tender security form
6. Performance security form
7. Declaration form

38
FORM OF TENDER

Date____________________________
Tender No._______________________

To……………………..

…………………………..

[Name and address of procuring entity]

Gentlemen and/or Ladies:

1. Having examined the tender documents including Addenda

Nos.. [insert numbers,
the of which is hereby duly acknowledged, wed, the undersigned, offer to provide.
[description of services]
in conformity with the said tender documents for the sum of . [total tender amount in words
and figures]
or such other sums as may be ascertained in accordance with the Schedule of Prices attached
herewith and made part of this Tender.

2. We undertake, if our Tender is accepted, to provide the services in accordance with the
services schedule specified in the Schedule of Requirements.

3. If our Tender is accepted, we will obtain the tender guarantee in a sum equivalent to 10%
percent of the Contract Price for the due performance of the Contract, in the form prescribed
by (Procuring entity).

4. We agree to abide by this Tender for a period of […..] days from the date fixed for tender
opening of the Instructions to tenderers, and it shall remain binding upon us and may be
accepted at any time before the expiration of that period.

5. Until a formal Contract is prepared and executed, this Tender, together with your written
acceptance thereof and your notification of award, shall constitute a binding Contract
between us.

Dated this _________________ day of_________________ 20

[signature] [In the capacity of]
Duly authorized to sign tender for and on behalf of___________

39
CONTRACT FORM

THIS AGREEMENT made the ___day of _____20____between…………[name of procurement

entity] of ……………….[country of Procurement entity](hereinafter called “the Procuring
entity”) of the one part and ……………………[name of tenderer] of ……….[city and country of
tenderer](hereinafter called “the tenderer”) of the other part.

WHEREAS the procuring entity invited tenders for certain materials and spares.
Viz……………………..[brief description of materials and spares] and has accepted a tender by
the tenderer for the supply of those materials and spares in the spares in the sum of
………………………………………[contract price in words and figures]

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 referred to.

2. The following documents shall be deemed to form and be read and construed as part
of this Agreement, viz.:

(a) the Tender Form and the Price Schedule submitted by the tenderer;
(b) the Schedule of Requirements;
(c) the Technical Specifications;
(d) the General Conditions of Contract;
(e) the Special Conditions of Contract; and
(f) the Procuring entity’s Notification of Award.

3. In consideration of the payments to be made by the Procuring entity to the tenderer as

hereinafter mentioned, the tenderer hereby covenants with the Procuring entity to provide the
materials and spares and to remedy defects therein in conformity in all respects with the
provisions of the Contract

4. The Procuring entity hereby covenants to pay the tenderer in consideration of the provision
of the materials and spares 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.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with their respective laws the day and year first above written.

Signed, sealed, delivered by___________the _________(for the Procuring entity)

Signed, sealed, delivered by___________the __________(for the tenderer)

in the presence of_______________.

40
CONFIDENTIAL BUSINESS QUESTIONNAIRE

You are requested to give the particulars indicated in Part 1 and either Part 2 (a), 2(b) or 2(c)
whichever applied 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 .............................................................................................
Plot No, ..........................................................Street/Road .....................................................
Postal address ........................Tel No. ..................................Fax Email ...............................
……………………………………………………………………………………………..
Nature of Business ................................................................................................................
Registration Certificate No. ...................................................................................................
Maximum value of business which you can handle at any one time – Kshs. ........................
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
Given details of partners as follows
Name Nationality Citizenship details Shares
1. …………………………………………………………………………………………
2. …………………………………………………………………………………………
3. …………………………………………………………………………………………
4. …………………………………………………………………………………………
Part 2 (c) – Registered Company
Private or Public
State the nominal and issued capital of company
Nominal Kshs.
Issued Kshs.
Given details of all directors as follows
Name Nationality Citizenship details Shares
1. …………………………………………………………………………………………
2. …………………………………………………………………………………………
3. …………………………………………………………………………………………
4. …………………………………………………………………………………………

Date……………………………………….Signature of Candidate………………………..

41
TENDER SECURITY FORM

Whereas ………………………………………..[name of the tenderer]

(hereinafter called “the tenderer”)has submitted its tender dated………………..[date of

submission of tender ] for the provision of ………………………………………………..

[name and/or description of the services]

(hereinafter called “the Tenderer”)……………………………………………………..

KNOW ALL PEOPLE by these presents that WE………………………………………

Of……………………………………………having registered office at

[name of procuring entity](hereinafter called “the Bank”)are bound unto………………

[name of procuring entity](hereinafter called “the procuring entity”) in the sum of ………..

for which payment well and truly to be made to the said Procuring entity, 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 the tenderer withdraws its Tender during the period of tender validity specified by the
tenderer on the Tender Form; or
2. If the tenderer, having been notified of the acceptance of its Tender by the Procuring entity
during the period of tender validity:

(a) fails or refuses to execute the Contract Form, if required; or

(b) fails or refuses to furnish the performance security, in accordance with the
instructions to tenderers;

we undertake to pay to the Procuring entity up to the above amount upon receipt of its first
written demand, without the Procuring entity having to substantiate its demand, provided that in
its demand the Procuring entity will note that the arnouut claimed by it is due to it, 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 above date.

____________________________________________________
[signature of the bank]

(Amend accordingly if provided by Insurance Company)

42
PERFORMANCE SECURITY FORM

To: ……………………………………………………………………………………………..

[name of the Procuring entity]

WHEREAS……………………………….[name of tenderer]

(hereinafter called “the tenderer”) has undertaken, in pursuance of Contract

No.___________[reference number of the contract] dated _______________20______to

supply……………………………………………………………………………………..

[Description services](Hereinafter called “the contract”)

AND WHEREAS it bas been stipulated by you in the said Contract that the tenderer shall furnish
you with a bank guarantee by a reputable bank for the sum specified therein as security for
compliance with the Tenderer’s performance obligations in accordance with the Contract.

AND WHEREAS we have agreed to give the tenderer a guarantee:

THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of the
tenderer, up to a total of …………………………………………………….
[amount of the guarantee in words and figures],

and we undertake to pay you, upon your first written demand declaring the tenderer to be in
default under the Contract and without cavil or argument, any sum or sums within the limits of
………………………..
[amount of guarantee] as aforesaid, without your needing to prove or to show grounds or reasons
for your demand or the sum specified therein.

This guarantee is valid until the _____ day of 20

__________________________________________________________________
Signature and seal of the Guarantors

____________________________________________________________________
[name of bank or financial institution]

____________________________________________________________________
[address]

______________________________________________________________________
[date]

(Amend accordingly if provided by Insurance Company)

43
DECLARATION OF UNDERTAKING

We underscore the importance of a free, fair and competitive procurement process that precludes

abusive practices. In this respect we have neither offered nor granted directly or indirectly any

inadmissible advantages to any public servant or other person nor accepted such advantages in

connection with our bid, nor will we offer or grant or accept any such incentives or conditions in

the present procurement process or, in the event that we are awarded the contract, in the

subsequent execution of the contract. We also declare that no conflict of interest exists in the

meaning of the kind described in the Public Procurement & Disposal Act 2015

We also underscore the importance of adhering to the law in the implementation of the project.

We will inform our staff about their respective obligations and about their obligation to fulfil this

declaration of undertaking and to obey the laws of the country. We also declare that our

company/sub-contractors/ all members of the consortium has/have not been debarred to engage

in procurement/ included in the list of sanctions.

We acknowledge that, the client is entitled to terminate the contract immediately if the

statements made in the Declaration of Undertaking were objectively false or the reason for

exclusion occurs after the Declaration of Undertaking has been issued.

Dated this day of 20

(Name of company)

(Signature(s)

44
POWER OF ATTORNEY

To [name of the Procuring entity] ………………….

Note: This power of attorney should be on the letterhead duly signed and stamped nominating a
representative to transact and sign document on behalf of your company.

45