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INTEGRITY PACT PROGRAMME ONGC’S EXPERIENCE 07 th July,2008 Hyderabad. VISION OF ONGC To be a world-class Oil & Gas Company Integrated in energy business with dominant Indian leadership and global presence. BACKGROUND.
07th July,2008 Hyderabad
a world-class Oil & Gas Company
Integrated in energy business
dominant Indian leadership
The Pact begins when both parties have signed it. It expires for the Contractor 12 months after the last payment under the respective Contract and for all other Bidders 6 months after the contract has been awarded.
1.Shri V.K. Shunglu , former CAG of India
2.Shri V.K. Agarwal, former Chairman
3.Shri Arvind Varma, former Secretary to
First IEM pre- nomination done on 30th May, 2006
Pre-nomination has been done for 58 cases valuing Rs 73337 Cr .
Contracts has been awarded/supply order(s) placed for 27 Cases valuing Rs 25006 Cr
Based on interaction with TII & IEMs and feedback from vendors following improvements have been made in IP:
1.M/s Trishakti Electronics & Industries Ltd., Kolkata represented that there was violation of IP by other bidders as these bidders have formed a cartel and quoted rates.
2.M/s Weihai Sunfull Electronics Group Co. Ltd., China represented against Technical rejection of their bid on account poor performance of their supplies against past order.
4.M/s Baoding Earth Science Technology Co. Ltd, China represented against Technical rejection of their bid for Geophone String Model 20DS10(B) though satisfactory performance certificate from oil cos. were submitted. The bidder also represented that one of the other bidders has not furnished documents to support that their past supplies were of oil field Marsh casing.
5. Four Hon'ble MPs complained that while evaluating the commercial responsiveness , unwanted relaxations were granted to the Consortium bidder lead by M/s Great Offshore and another bidder M/s Nafrogaz. M/s Sub Ocean one of the consortium partners with M/s Great Offshore was stated to be not meeting the Financial criterion regarding Turn over. Whereas in case of M/s Nafrogaz the Statutory Auditors expressed doubt about the financial position of their Parent company. Hence the representationist sought that the above two bids ought to be rejected. Priced bids were opened on 24.08.07.
6. Contract with M/s Liaohe Petroleum Exploration Bureau (LPEB) China for 3D Data acquisition was terminated by ONGC due to delay in mobilization and un-preparedness of contractor for execution of contract. Contractor represented against termination of contract on non justified grounds in spite of the fact that LPEB has fulfilled their contractual obligation.
7.M/s L&T represented that as per tender provisions bids shall be submitted only in the name of bidder or a consortium/ joint venture lead by the bidder in whose name bidding documents were issued by ONGC. M/s L& T contented regarding responsiveness and admissibility of bid submitted by M/s Ramunia Fabricators Sdn. Bhd. Malaysia in whose name bid documents were not issued but in the name of M/s Ramunia International Services Ltd, Kuala Lumbur
Review the effectiveness of Integrity Pact program by the following: