Many PSUs, state-owned enterprises and privately owned companies float oil and gas tenders in India. Companies which are major stakeholders in the oil and gas sector in India like Oil and Natural Gas Company (ONGC), Indian Oil Corporation (IOCL), Oil India Ltd. (OIL), GAIL (India) Ltd., Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL), Mangalore Refinery and Petrochemicals Ltd., Indraprastha Gas Ltd. to name a few, often release tenders for domestic or foreign companies to participate.
If you’re an EPC company, consultants or service providers in the oil and gas sector and willing to participate in such tenders, then give it a read.
One of the primary criteria to participate in tenders in India is that the bidder should be in possession of a digital certificate. Whether it is a domestic or foreign bidder, it is mandatory to have a digital certificate.
And what exactly is a ‘Digital Certificate’?
To put it simply, Digital certificate is an electronic form of a physical signature. Exclusively talking about the tendering process, a digital signature authenticates the person/organization participating in the bidding process.
Almost all bidding processes in India have been digitized and thus, having a Digital Certificate was made mandatory for participating in any tender to reduce corruption and increase transparency in the bidding processes and award of projects.
Where will I find the tenders?
In India, it is mandatory to release a print ad for any tender whose estimated project cost is more than 5 lakh. And irrespective of the project cost, all government or state-owned enterprises tenders are uploaded on their respective e-procurement or e-tendering portals.
You would have to check with their e-portals to find when the organisations have released a tender and then you may bid for the same.
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I found the tender. Now, how do I participate?
Here below are given generalised steps you need to follow to participate in any tender:
- For participating in any tender released online, you have to create an account for and on behalf of your enterprise.
- After creating an account, you need to insert the log-in credentials to access the dashboard where an array of tenders may be displayed. Choose the one you want to bid for. [There are so many tenders, how do I filter? Finding it a cumbersome process, our dashboard makes it much simpler. Click here and let us simplify it for you!]
- Study the documents carefully and prepare your bid.
- In general, tenders documents have two parts: techno-commercial bid and price bid. You need to prepare your bid as per the tender documents and submit it online or offline (a few documents like EMD and price bid are still required to be submitted in hard copy)
Let’s quickly summarise the steps for participating in the bidding process. (We’re not taking into account the part of the process before tender document preparation):
- Tender is released on the online platforms and a print ad is released
- Sometimes a pre-elimination process is there which filters a company depending upon the empanelment and association with the project owner.
- All the interested bidders meet for a pre-bid
- During pre-bid discussion, the scope of work and other compliances given in the tender documents are discussed thoroughly; in case they’re found out of sync with the scope of work, they may be withdrawn as per the final decision of the project owner.
- If there are any changes, a separate corrigendum is issued. Else, the bidder should consider bidding with the previously released tender Bid documents needs to be submitted online or offline as per instructions before the due date of submission.
- In most of the cases, techno-commercial bid is opened first. The evaluation team filters the companies out which they don’t find fit to complete the scope of work as given in the document. And price bid of only the bidders who have qualified this round shall be opened on the due date.
- Price bid is opened and the tender is often awarded to the lowest bidder, L1. But there are cases when if L1 is unable to meet important criteria, evaluation might consider awarding the contract to a more efficient and qualified bidder. Be it anything, it’s the project owner’s call and his decision is final and binding.
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