FMS - GAIL

40. Contract
Performance
Security
41. Corrupt or
Fraudulent
Practices
39.2 The successful bidder shall be required to execute an AGREEMENT in
the proforma given in of this standard bidding document on nonjudicial
paper of appropriate value (the cost of stamp paper shall be
borne by the Contractor), within 15 days of the receipt by him of the
Notification of Acceptance of Tender. In the event of failure on the
part of the successful bidder to sign the AGREEMENT within the
above stipulated period, the Bid Security shall be forfeited and the
acceptance of the tender shall be considered as cancelled.
40.1 Within 15 days of the receipt of the notification of award / Fax of Intent
from GAIL, the successful bidder shall furnish the contract
performance security in accordance with Article 24 of General
Conditions of The Contract in the form provided in the bidding
documents. The Contract Performance Security shall be in the form of
either Banker’s Cheque or Demand Draft or Bank Guarantee or Letter
of Credit and shall be in the currency of the Contract.
40.2 The contract performance security shall be for an amount equal to
10% of the value of the contract towards faithful performance of the
contractual obligations and performance of equipment. This Bank
Guarantee/DD/Letter of Credit shall be from any Indian scheduled
bank or a branch of an International bank situated in India and
registered with Reserve bank of India as scheduled foreign bank.
However, in case of bank guarantees from banks other than the
Nationalized Indian banks, the bank must be a commercial bank
having net worth in excess of Rs 100 crores and a declaration to this
effect should be made by such commercial bank either in the Bank
Guarantee itself or separately on its letterhead. This bank guarantee
shall be valid for a period as stated in Article-24 of General
Conditions of The Contract.
40.3 Failure of the successful bidder to comply with the requirements of this
article shall constitute sufficient grounds for the annulment of the
award and forfeiture of the bid security, in which event GAIL may
award the order to the next lowest evaluated bidder or call for new
bids.
41.1 GAIL requires that bidders/contractors observe the highest standard of
ethics during the execution of contracts. In pursuance of this policy,
the Employer :
a) defines, for the purposes of this provision, the terms
set forth below as follows :
i) “corrupt practice” means the offering, giving or
soliciting of anything of value to influence the action
of a public official in the procurement process or in
contract execution; and
ii) “fraudulent practice” means a misrepresentation of
facts in order to influence a procurement process or
the execution of a contract to the detriment of the
Employer, and includes collusive practice among
bidders (prior to or after bid submission) designed to
establish bid prices at artificial non-competitive levels
and to deprive the Employer of the benefits of free
and open competition;
b) will reject a proposal for award if it determines that
the bidder recommended for award has engaged in
corrupt or fraudulent practices in competing for the
contract in question;
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