Ke Kenya Electricity Modernization Project (kemp)
The Kenya Power & Lighting Co.Ltd.
CentralOffice ? P.O.Box 30099, Nairobi,Kenya
Telephone ? 254-02-3201000-Telegrams 'ELECTRIC'- www.kenyapower.co.ke
Stima Plaza, Kolobot Road
Our Ref: KP1/6E-2/PT/1/16/A47 15th September, 2016
Dear Sir/ Madam:
CLARIFICATION No 1: ON: ICB No: KP1/6E-2/PT/1/16/A47 FORPROCUREMENT TREATED WOODEN POLES ISSUED ON 14th JULY, 2016 WITH AMMENDMENT ISSUED ON 06th SEPTEMBER, 2016
1. CLARIFICATION TO BID DOCUMENT
Bidding Documents have been amended and re-advertised asRevised Bidding Documentsissued on 6th September, 2016 in the Local Dailies, and simultaneously published in the KPLC website underthis link: http://www.kplc.co.ke/content/item/1681/amendment-no.1-issued-on-6th-september-of-bidding-document-for-icb-no.-KP1/6E-2/PT/1/16/A47
The following responses are made to clarifications sought on various issues in theBidding Documents for Procurement of Treated Wooden Poles.
Reference to the advert on TreatedWooden Poles appearing in today's Daily Nation, we would be keen to offer our bid for the same though on Fibreglass Poles which wehave been trying to get a detailed response on from your company.
We strongly believe that FibreglassPoles will offer a viable solution at reasonable rates.
Let us know if your organization isopen for this kind of technology and serious discussions on the same.
Hoping for your positive and timelyreply.
Our Scope of Bid is for Treated WoodenPoles as specified in Section II-Bid Data Sheet(BDS);ITB 1.1.
Further, refer to Section VII-Scheduleof Requirements for more details.
We are a reputable wood processing company in Estonia. We offer treated and untreated wood andimpregnated utility poles (Tanalith E Poles and Creosoted Poles), and various other wood related items. We sellour utility poles tovarious companies including local Estonian national electricity producer Eesti Energia.
Mainly we are dealing with pinepoles, also called Nordic poles. You can find more about our poles in our product catalogue in attachment.
We noticed yourtender and we should be able to fulfil your requirement. Please let us know the procedure for making offer and we look forward toall possibilities of cooperation. Since we are located outside Kenya in Europe, please give us instructionsaccordingly.
Acomplete set of bidding documents in English may be downloaded without any fee by interested bidders at www.kplc.co.ke or purchasedat the address below upon payment of a non-refundable fee ofKES 1000or equivalent amount in a freely convertible currency. The method of payment will be Cash or Bankers Cheque, payable at theChief Accountant's Office, KPLC, Stima Plaza, 1st Floor, and receipt obtained.
Underwww.kplc.co.ke use thisLink: http://www.kplc.co.ke/content/item/1594/invitation-for-bidsifb-treated-wooden-poles-14th-july,2016
We are intending to participate in theabove tender for treated wooden poles and in this regard we request you to kindly clarify onthefollowing:
1. If weare bidding for all lots, do we need to make separate sets ( one original and two copies)separately for all the lotsi
2. Canwe have only one set for all the lots.( A set having one original and twocopies)
3. BidCapacity Information: As most of our supply of treated wooden poles has been to KPLC do we need to submit the copies of thefollowing documents:
· Copies of all invoices for all the deliveries made in the lastfive years
· Copies of contract and ordercopies
Asthe documents become very bulky. Also we are arranging for the Auditor Certifying the Capacity DeclarationForm
Appreciate if you can clarify on theabove, to enable us to startworking on the required documents.
1.You may submit one bid for multiple lots, However the purchaser prefers submission of separatesets for differentlots.
3.Please submit Contract copies and contract completion certificate
If you can please be as kind as to giveme some clarity on the following aspects on the Bidding document.
Page 42 a) If Bidder is Manufacturer:
(i) Financial Capability
b) The minimum average annual turnover as indicated on the table below which is Calculatedas total certified paymentsreceived for contracts in progress or completed, within the last five years
Question ? If my turnover for the last 5 years in USD million was 8, 9, 10 11.5 and 12 is the "total certified payments"50.5 or 10.1 (50.5 / 5 =10.1)
Page 44 ? CapacityDeclaration
Question ? Based on the capacitycalculation does it mean that iswe have capacity to do one of the Lots that we can only bid on one lot? What happens if all thebidder bid only on Lot 1?
I would appreciate if you can explainthe above process to me? I also see the above requirements fall under point 3.1 on page 41 with the heading "Post qualificationRequirements"
The minimum average annual turnover isthe average of the total certified payments received in the five years i.e. total certified payments received from contractsdivided by five -Meaning turnover shall include only payments received nothing else.
That is a requirement for a bidder toget more than one Lot and it MUST be met.Bidders are at liberty to bid any numberof lots even if they are qualifiedfor one lot. When bidder is qualified for one lot, Bidder may bid for one or more lots and contract willbe awarded to the lowestevaluated responsive bidder who meets post Qualification Requirements.
· Referto requirements under Section III: Evaluation and Qualification Criteria-Capacity DeclarationForm
Reference is made to the ICB No:KPL/6E-2/PT/1/16/A47 for TreatedWood Poles.
The Specification referred to in this ICB is for treated wood poles Part 1:Eucalyptus Poles.
However, we are in a possession of Part 2: Soft Wood Poles. Copy attached.
As you may well know,Eucalyptus poles do not grow in the Northern Hemisphere, and therefore
we could supply only pine poles. On the otherhand,poles made of Scots Pine (Pinus Sylvestris) are
reputedly the best availablewood species for poles.
Question: Would you consider also bids, made against the above mentioned ICB, based on softwood
poles? Or is the purchase limited to Eucalyptus species only?
Bidder may bid using Specifications forSoft Wood KPLC1-3CB-TSP-03-001-2 or Specification for Treated Wood Poles Part 1-Eucalyptus Poles, available inKPLC Website-www.kplc.co.ke, under thislinks:
On page 44 of the tender document, it has been indicated that the months prescribed for completion of the supply for thisbid / tender is 18 months. However, in the section for schedule of requirements, the table that the bidder is required to fill outindicates the latest delivery date as 6 months after date of contract signature.
Could you please clarify which the period is given for completion of supply if the contract isawarded?
Refer to Section VII-SupplyRequirements.
Detailed information is available underList of Goods and Delivery Schedule for each Lot.
Supply should commence after 3 months andcompleted within 18 months as specified in Section VII-Supply Requirements
In the ITB 19.3 (a), the bidders have been given the option of the bid security being in the form of a demandguarantee from a financial institution like an INSURANCE COMPANY. In the BDS, the source of the guarantee has not been specified aswell.
Doesthis mean that you will accept bid securities for this tender from INSURANCE COMPANIES registered withPPOA?
In addition, in the bidding forms provided, the only format given for the form of the bid security has been labelled BANKGUARANTEE. Does it suffice to say we can use the same format for the other forms of bid security the biddermay wish to provide as longas the comply with ITB 19.3?
Bid Security shall be in the Form of a Bank Guarantee only, and in the Format provided under Section IV: BiddingForms, of the Bidding Documents.
Refer to amendment issued.
ITB14.8 mentions the place of destination as CIP Mombasa. Since we are planning totransport poles from Uganda via road please clarify this is acceptable.
ITB14.8 ? please confirm that the final destinations are the respective stores as mentioned in the tenderdocument
Yes,other Port of Entry (Border Point) is acceptable.
Finaldestinations are as indicated in the Bidding documents.
SinceKPLC will be making direct payment to KRA for all the duties. VAT., taxes, levies, etc. Please clarify whether these payments will be done by KPLC in advance upon submission of invoicesand all the necessarydocuments for clearing?
Payments will be done on submission of shipping documents and import entry.
ITB18.3. The clause that mentions that the bid price is 0.1% per week is adjustable. Please clarify what this means and how this adjustment willoperate.
Referto Section I-Instruction to Bidders Clause 18.3,and 18.3(a) as supplemented by ITB 18.3(a) Section II of the Bid DataSheet(BDS)
Section III ? Evaluation and Qualification Criteria ? Page 40 ? In a joint venture arrangement between a foreignmanufacturer and a local manufacturer, will the margin of preference still apply if it can be demonstrated that at least 30% of thegoods to be supplied will be sourced and manufactured in Kenya?
ForJoint Venture agreement or arrangement, refer to Section I-Instructions to Bidders (ITB 4.1).
Aboutthe applicability of margin of preference, referto Section III-Evaluation andQualification Criteria-1.Margin of Preference(ITB 33),(a),(b) and (c)
Evaluation and Qualification Criteria (Page 42): states that the minimum average annual turnoverwhich is calculated as totalcertified payments received for contracts in progress or completed, within the last five years should be
Lot 1- $ 11.4 million
Lot 2- $ 15.8 million
Lot 3- $ 13.9 million
Please clarify what is the exact meaning of total certified payments received - Does this mean total turnover or does it mean actual cash flow?
Webelieve that this condition is extremely tough keeping in mind that the business environment changes very quickly in the currentglobalization, would it be satisfactory if we met the required annual average over the past 3 years and also demonstrate ourcurrent business strength and capacity.
Themeasured parameter is the Turn Over not Cash flow.
Referto Amendment No.1,and Revised Bidding Document for treated wooden poles issued on 6th September,2016-available underthis Link: http://www.kplc.co.ke/content/item/1681/amendment-no.1-issued-on-6th-september-to bidding-document-for-icb-no.-KP1/6E-2/PT/1/16/A47 -for-procurement-of-treated-wooden-poles-issued-on-14th-july,2016.
Evaluation and Qualification Criteria - Page 42 ? Are the minimum turnover requirements cumulative, i.e. if the bidder bidsfor lots 2 and 3 does the bidder need to have total turnover of $ 29.7 million?
The turn over requirement iscumulative.
Changes have been made on turn overdetails-refer to amendment No.1 and revised bidding documents issued on 6th September,2016 and now available under thislink: http://www.kplc.co.ke/content/item/1681/amendment-no.1-issued-on-6th-september-of-bidding-document to -bidding-document-for-icb-no.-KP1/6E-2/PT/1/16/A47 -for-procurement-of-treated-wooden-poles-issued-on-14th-july,2016.
Evaluation and Qualification Criteria - Page 43 ? states that when a bidder isnot from the purchaser's country that thebidder must have supplied 66,000/10m, 4,300/11m and 4,000/12m outside the country of the bidder during the last five years (for onelot or multiple lots).
o Does this mean that a total of74,300 poles must have been exported in the previous 5 years?
o If a bidder has exportedatotal of 74,300 poles over 5 years but not the specific requirementfor sizes (i.e. the bidder has exported 9 metre of 13 metrepoles (instead of 10 metre poles) will the bidder still qualify?
Referto the formula providedagainst Capacity Declaration Form on Page 44.
Is itpossible to assign receivables from the bidding company to the manufacturer such that the manufacturer invoices directly to KPLCand payments are made directly into the bank account of the manufacturer by KPLC?
Evaluation and Qualification Criteria - Page 44 ? Available bid capacity formula is provided. How will the annual quantity supplied be calculated? Is this goingto be sum total of all the quantities supplied in the bidder's country plus supplies outside the bidder'scountry?
Yes,further refer to Supply Available Bid Capacity Formula provided for details.
Is abidder able to bid directly for one lot and also offer a manufacturer authorization for anotherlot?
Yes, referto ITB 4.2 (d), or (e) under Section I: Instructions to Bidders. and Section IIIPost QualificationRequirements
Irefer to Section III Evaluation and Qualification Criteria under ITB 36.1 (pages 42). "For award of contracts for more than one lot the Bidder (s) shall be required to meet the cumulative post qualificationrequirements for ?. . Does it mean that if you do not meet the qualificationsof PostQualification Requirements but was qualified amongst the lowest-evaluation bid in accordance to ITB 53.1, then only quality for anaward of only one lot?
Underthe same section on page 42 (ii) Experience capacity paragraph 9a) "The Bidder shall have a minimum of Five (5) years' experiencein manufacturing the wooden poles". As you are aware, KPLC started issuance ofcertification of treatment plants in the year 2012 (I stand to be corrected on the date). In the previous years, no such plant approvals weregiven by KPLC. Which documents shall form part of proof that amanufacturer has been in production for the last five years?
Anydocumentary evidence on supply ofwooden poles will be considered e.g. Certified LPO's and Contracts
Thebid document is clear as to the minimum bids expected i.e. in whole lots. Is the purchaser intending then to award each lot to just1 bidder?
Referto Section II: Bidding DATA Sheet (BDS), ITB 38.1 for details.
Is it acceptable for the bidder to furnish the bid security from 2 or 3 different banks provided that thetotal securities cover the minimum guarantee required?
Yes,further refer to the instructions for Form of Bid Security (Bank Guarantee) underSection IV-Bidding Forms.
Inthe event of an agency agreement with a manufacturer bidder, will KPLC separate payment for the agent and the bidder in the eventof a successful bid?
No, Bids will be accepted from a manufacturer or an authorized agent who has been issued a Letterof Manufacturer's Authorization. In the event an authorized agent is awarded a contract, the contract will be between the agent (asthe Supplier) and KPLC (as the Purchaser) and payments will be made to the Supplier against deliveries".
Lastly, is there a scheduled pre-bid meeting for this tender?
Thereis no pre-bid meeting.
Weare a manufacturer of treated wooden poles in Tanzania, and we wish to bid for the supply of the same. While filling up theprice schedule we found that the unit price CIP Mombasa has to be quoted whereas we plan to supply by road by using the ArushaNairobi highway.
Kindly let us know how we should proceed, e.g., which form we should select for price schedule (out of the three given foreach lot)? If we opt for the route mentioned above, then what should we mention in column no. 6? etc.
OtherPort of Entry (Border Point) is acceptable.
Useappropriate Price Schedule for your specific case. Also, refer to details under ITB 14.8 as instructed in column6. Ifthe poles are manufacture outside Kenya and not yet imported, then you will use Price Schedule: GoodsManufactured outsidePurchaser's country, to be imported
Instruction to bidders, Section 4.2(e). Are bidders allowed to:
Biddirectly for more thanone lot
Bidders are at liberty to bidany number of lots even if they are qualified for one lot. When bidder is qualified for one lot, Bidder may bid for one or morelots and contract will be awarded to the lowest evaluated responsive bidder who meets post QualificationRequirements.
(Refer Section III, Evaluation Criteria (ITB 34) Sub-Section 2.2. Multiple Contracts (ITB34.4)and ITB 36.1 Post-Qualification Requirements for one or more lots
Biddirectly for one lot and offer a manufacturer authorisation to a third party for a differentlot ( for example- bid direct into lot2 but offer a manufacturer authorization for lot 1)
Yes,the requirements mustbe met refer tosection III- Sub-Section ITB 36 post qualification requirements
Biddirectly and in a joint venture for different lots ( for example- bid direct into lot 2 and in a joint venture arrangement for lot1)
Section III- Evaluation andQualification Criteria- Page 40- In ajoint venture arrangement between a foreign manufacturer and a local manufacturer, will themargin of preference still apply if it can be demonstrated that at least 30 % of the goods to be supplied will be sourced andmanufactured in Kenya
Referto Section III Evaluation and Qualification Criteria ? Margin of Preference (ITB 33)- Group A&B
Is it possible to assign receivablesfrom the bidding company to the Manufacturer such that the manufacturer invoices directly to KPLC and payments are made directlyinto the bank account of the manufacturer by KPLC?
For: KENYA POWER & LIGHTING COMPANY LIMITED.
ENG. JOSEPH K.GATHURU