Trading Corporation of Pakistan (TCP), rejecting first lowest bid on technical ground, has finalised deal with responsive bidders for procurement of 10,000 tons Long Grain White Rice (PK-386) at a price of Rs 47,950 per metric ton for China.
In order to ensure timely export of rice to China as a gift, the TCP has asked successful bidders that shipment of the cargo be completed and Bill of Lading be submitted in a period of 18 days from the date of issuance of letter of award of bid. As the tender has been awarded on Tuesday August 16, successful bidders are required to dispatch cargo in next 18-days.
TCP's bid evaluation committee met on Tuesday to evaluate the bids received for export of 10,000 tons long grain white rice (PK-386) in containerized bagged shipment on cost insurance and freight (CIF) basis to China. The bids were evaluated on the basis of lowest price on CIF basis [exclusive of withholding tax (1%) and Export Development Surcharge (0.25%)] subject to conformity of the bid with all the terms and conditions of the tender document.
The lowest bid was submitted by M/s Chappal Traders, which agreed to supply 3,500 tons Long Grain White Rice (PK-386) at a price of Rs 46,692 per metric ton. However, the first lowest bid was found non-responsive on technical grounds and accordingly rejected by the TCP.
Sources said that M/s Chappal was successful bidder in the first tender opened on August 10 for said procurement. It won the tender by quoting lowest price of Rs 41,392 per metric ton on CIF basis. However, after getting contract award letter, it imposed some conditions for supply of 10,000 tons Irri-6 and defaulted. Secondly, as per tender term and conditions, each bidder was required to deposit 1% bid security, which was also not deposited by M/s Chappal Traders in the second tender. Thirdly, TCP asked for minimum quantity of 2,000 tons or multiples therefore with a maximum quantity of 10,000 metric tons. However, it submitted bid for 3,500 per ton.
As the M/s Chappal Trader was defaulted in the first tender, submitted bid without security and its bid was not multiple of 2,000 tons, TCP's bid evaluation committee declared its bid non-responsive. Second lowest offer was received from M/s Garib Sons, which submitted three bids ranging Rs 47,950 to Rs 49,950 per metric ton for cumulative supply of 6,000 tons rice. As the second bid was responsive, on TCP request M/s Garib Sons agreed to supply 6,000 tons rice at single rate of Rs 47,950 per ton.
In order to complete the procurement of 10,000 tons, TCP also offered other bidders for prices matching. M/s Meskey & Femtee Trading and M/s KK Rice accepted TCP's offer and agreed for supply of 4,000 tons long grain white rice (PK-386) at Rs 47,950 per metric tons.
As per tender term and conditions, the TCP will be liable to pay the withholding taxes (1 %) and Export Development Surcharge (0.25 percent), if not exempted by the Government of Pakistan.
The successful bidders are required to furnish a performance bond of 5% of the bid value in a pay order or demand draft or bank guarantee within two working days of issuance of letter of award of the bid for due and satisfactory performance of the contract.
The performance bond will be forfeited without notice in case the successful bidder commits any breach of contract or fails to fulfil any terms and conditions of the contract. The performance bond shall be released within 15 days after the successful performance of the contract.