KAED Tender Admin

INVITATION FOR TENDER To: __________________________________ __________________________________ __________________________________ __________________________________

Dear Madam / Sir, Re:

Tender for the supply, delivery and installation of agricultural equipment (tractor, plow, disc, sprayer, drill, planters, seed cleaners, combine harvesters, etc)

We hereby invite you to submit sealed tenders for the execution and completion of the above tender.

The tender document for the procurement of agricultural equipment under the KAED project is available on line at www.ifdc.org. The document is in pdf format. If for any reason the complete tender document cannot be accessed, please contact the following: TenderKAED@kaed.kg Inquiries about the tender shall be done in writing to: TenderKAED@kaed.kg Technical or administrative inquiries will NOT be answered by phone by IFDC head office in the US or KAED Office in Kyrgyzstan. Kindly, direct questions via email to the email address as above.

Your tender must be accompanied by a Tender Security Bond equivalent to 5 % (five) of tender sum from a reputable bank valid for 90 days after tender opening date and enclosed in the bid submission and addressed to:

IFDC / KAED Office Agriculture Seed Investment Program 46 Oshskaya Street Bishkek 720052 KYRGYZSTAN

IFDC / KAED Tender Admin Agric Equipment, May 2012

TENDER NOTICE Agriculture Seed Investment Program General Information Goods:

Agriculture equipment: tractor, plow, drill, disc, sprayer, combine, seed cleaner, etc

Country:

Republic of Kyrgyzstan

Publication Date:

May 02, 2012

Funding:

United States Agency for International Development (USAID)

General Considerations Following considerations generally guide the procurement process: a. The need for economy and efficiency in the implementation of the tender. b. Giving all eligible bidders the same information and equal opportunity to compete. c. The importance of transparency in the procurement process.

Open competition is the basis for efficient procurement. The principles, rules and procedures outlined in this guideline apply to all goods and services financed by this tender.

Contents The tender document comprises information as listed below: i.

Invitation for Tender ii.

General information iii.

Instruction to Bidders iv.

Preparation of Bids v.

Submission of Bids vi.

Bid Opening and Evaluation of Bids vii.

Award of Contract viii.

Special Conditions of Contract ix.

Attachment: Lots and Technical Specification of Equipment The tenderer is expected to examine all instructions, forms, terms, and specifications in the tender documents. Failure to furnish all information required by the tender documents or to submit a tender not substantially responsive to the tender documents in every aspect will be at the tenderer’s risk and may result in the rejection of its tender.

IFDC / KAED Tender Admin Agric Equipment, May 2012

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Table of Contents

Chapter

Particulars

Page

Section 1

Invitation For Bids

3

Section 2

Instructions To Bidders

7

Section 3

Preparation Of Bids

10

Section 4

Submission Of Bids

13

Section 5

Bid Opening And Evaluation Of Bids

14

Section 6

Award Of Contract

15

Section 7

Special Conditions Of Contract

17

Section 8

Administrative Specifications

21

Annex

Lots And Technical Specification

22

Acronyms

CIP

CIP is carriage and insurance paid (to named place of destination). This term may be used irrespective of the mode of transport, including multimodal transport. CIP term is for custom duties and other import taxes unpaid, payment for which is the responsibility of the receiving party.

EXW ICC IFDC KAED USA USAID US $

Ex works, ex factory, off-the-shelf International Chamber of Commerce International Fertilizer Development Center Kyrgyz Agro-Input Enterprise Development Project United States of America United States Agency for International Development United States of America Dollars

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SECTION I: INVITATION FOR TENDER 1

Introduction

1.1

Description of Organization and Purpose

The International Fertilizer Development Center (IFDC) is a nonprofit public international organization dedicated to efficient farm input value chains, soil fertility, crop productivity, commodity value chains and supportive policy on private sector development in the agriculture sector.

The Kyrgyz Agro-Input Enterprise Development Project (KAED) implemented by IFDC and financed by the United States Agency for International Development (USAID) invites sealed bids 1 from eligible and qualified bidders for the contract of supplying agriculture equipment and technical services of further below described lots.

Bidding will be conducted through international competitive bidding procedures and is open to all bidders from Eligible Source Countries as defined in the guidelines.

The Kyrgyz Agro-Input Enterprise Development Project (KAED) as Procuring Entity, invites sealed bids from eligible bidders for supply of agriculture equipment (tractors, combine harvesters, soil preparation machines, planters, sprayers, seed cleaners, and others) for selected seed farms in the Republic of Kyrgyzstan. The tender will be split in different lots. All Machines, Parts, and Equipment under this tender must be new. Used and or refurbished equipment, part, and/or machines will not be accepted.

1.2 Contact Information of Procuring Entity and Implementation Office The address of the procuring entity and office is as follows.

International Fertilizer Development Center (IFDC) Kyrgyz Agro-Input Enterprise Development Project (KAED) 46 Oshskaya Street Bishkek 720052 Republic of Kyrgyzstan Office phone: +996 (312) 903 708 / 09 Email: TenderKAED@kaed.kg Fax: + 996 (312) 500 584

1.3

Two Bid System

The two bid system will be followed for this tender. In this system, the bidder must submit the offer in two separate sealed envelopes as detailed below:

1

For the purpose of these guidelines, the words “bid” and “tender” shall have the same meaning.

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Envelope No. 1: “Technical Bid” shall contain: a. The demand draft towards Tender Security Bond of the appropriate amount as mentioned in paragraph 3.8. The Tender Security Bond must be issued in the Name of IFDC. b. Duly filled Technical Bid with proper seal and signature of the authorized person on each page of the bid. c. VAT Registration certificate. d. Certificate of manufacturing the equipment according to ISO standards. e. Installation and warranty services are required as per bidder’s arrangements. The bidder must submit plan / arrangement for installation and satisfactory warranty /after sales services to be provided at side. These arrangements must be in place by the bidder(s) before submission of the Technical Bid. The bidder should provide service through a registered local dealer / service provider in Kyrgyzstan. The details such as name, address, contact person, phone, fax, email address, etc, of the local dealer / service provider should be provided along with the bid. f. Detailed technical specification, make and model and part number for which bid is submitted.

Respective technical (instruction) manuals for each machine have to be provided in Russian language.

Envelope No. 2: “Commercial Bid” shall contain: a. Price schedule complete in all respects with proper seal and signature of the authorized person on each page of the bid. b. Prices offered are in currency of United States of America Dollars (US $) and on basis of Carriage and Insurance Paid (CIP) terms 2 to place of destination (Procuring Entity rented warehouse in Bishkek, Kyrgyzstan). c. Bids for goods manufactured in the Republic of Kyrgyzstan shall be invited on the basis of EXW 3 (exworks, ex factory, or off-the-shelf) plus cost of inland transportation and insurance to the place of destination.

Both technical and commercial bid envelopes should be sealed separately and clearly marked as “Envelope no. 1 – Technical Bid” and “Envelope no. 2 – Commercial Bid”. Both sealed envelopes should be placed in a third larger sealed envelope clearly mentioning “Technical and Commercial Bid of Agriculture Equipment, KAED Project” and couriered to the address as mentioned in paragraph 1.4.

NOTE: Please, do not put “Commercial Bid” (prices quoted) in the “Technical Bid” envelope. If price quoted is submitted with technical bid, the tender will be rejected.

2

CIP is carriage and insurance paid to Bishkek, Kyrgyzstan. This term may be used irrespective of the mode of transport, including multimodal transport. CIP term is for custom duties and other import taxes unpaid, payment for which is the responsibility of the receiving party.

3 The EXW price shall include all duties, sales, and other taxes already paid or payable for the components and raw material used in the manufacture or assembly of the equipment offered in the bid. Manufactured goods include assembled goods.

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1.4

Last Date for Obtaining of Tender Documents, Date of Submission of Bids and Opening of the Technical Bids

Last date for download of tender document:

25th May 2012

Last date for submissions of bids:

31st May 2012

Technical bid will be opened:

04th June 2012

Tender submissions will be posted by registered mail or delivered against receipt to the following address: International Fertilizer Development Center (IFDC) Kyrgyz Agro-Input Enterprise Development Project (KAED) EVALUATION Agriculture Equipment 46 Oshskaya Street Bishkek 720052 Republic of Kyrgyzstan Office Phone: +996 (312) 903 708 / 09

Bids must be delivered to above address at or before 5:00 PM (Bishkek Time), on May 31, 2012.

Electronic bidding will not be permitted. Late bids will be rejected. Technical Bids will be opened in the presence of the bidders representatives who choose to attend in person at the address shown at 10:00 AM (Bishkek time), on June 04, 2012.

Any bid inadvertently received after the date and hour of submission of tenders as stipulated will be rejected and returned unopened to the tenderer.

The bidder is bound by this tender for a period of ninety (90) days from the date of submission. KAED will not be liable in respect of any costs incurred in the preparation of tenders or any associated work effort.

An electronic version of the complete tender file in PDF format can be downloaded from below contact: www.ifdc.org

Note: The agriculture equipment as requested in the tender both in lots and number may be purchased in total or in selected lots depending on availability of funds and at discretion of IFDC/KAED and the financing donor.

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1.5

Opening of Commercial Bids

1.5.1

The representative of bidders may choose to attend the opening of the technical bids. In case the bidder requires any clarification / information they may contact KAED Office at the address given in paragraph 1.2.

The technical bids will be evaluated to shortlist the eligible bidders. The technical bids of only shortlisted bidders shall be considered for further processing (commercial evaluation).

Bidders whose technical bid is found acceptable and meeting the eligibility requirements as specified in this tender will be informed about the date and time of the opening of the commercial bid.

The authorized representatives of bidders present at the time of opening of the bids shall be required to sign an attendance register as proof of having attended the commercial bid opening.

1.5.2 1.5.3

1.5.4

NOTE: Technically accepted competitive bids ONLY will be considered for opening of Commercial Bids.

1.6

Conditions of Participating in the Bidding

The following are sought for the firms to participate in the bidding. a. The firm must have a legal domicile. b. The firm must have submitted a Tender Security for this tender. c. The firm must submit a document issued after the date of announcement of this tender, indicating that it is registered with a Chamber of Commerce, a Chamber of Industry or relevant professional organizations and that it is currently active. d. The firm must submit 3 pro-forma invoices in both English and Russian each as attachment to the bid. e. The firm is a legal person; it must submit required authorization certificate and circular of signature.

In order of real person, it must submit a circular of signature. f. The firm must submit a document indicating that it is the representative of the firm whose bid is being submitted. g. The firm must submit a document issued to by a Chamber of Industry, indicating that the firm whose bid is being submitted is the manufacturer. h. Tender documents shall be submitted in English and Russian language. i. The firms must submit the original of the tender specifications whereby each page is signed by the authorized person of the firm concerned, by stating that the specifications have been fully read and accepted without putting forward any conditions.

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SECTION II: INSTRUCTION TO BIDDERS 2.1

Delivery Period / Timeliness

The supply must be dispatched by the supply/source point to the designated delivery point in Kyrgyzstan within 6 weeks 4 of placement of purchase order. Time is of essence in this contract and it is mandatory for bidders who respond to this bid to meet the time schedule. In case the equipment supplied is not in assembled form, the assembly must be finished within two weeks of receipt of information regarding delivery time of the equipment in Kyrgyzstan.

2.2

In-Country Warranty Services, Supply of Spare Parts and Training

The agriculture equipment and other machinery covered by this tender are required to be serviced under warranty conditions by an official representative of the suppliers in Kyrgyzstan. Spare parts supply must be guaranteed by an official representative of the supplier in Kyrgyzstan. The address of the warranty and spare part provider in Kyrgyzstan shall be communicated in the tender. The suppliers shall provide warranty services for at least one year and after sales services for the next five years.

Adequate spare parts availability at the Service Centers (supplier representatives) is necessary.

The bidder shall submit along with the technical bid, a detailed plan for providing spare parts and warranty services at site(s).

Technical experts of the manufacturer will fully and adequately train equipment operators in presence to the local company representative.

2.3

Order Placements and Release of Payment

The Purchase Order and payment documents shall be processed by the Procuring Entity: International Fertilizer Development Center (IFDC) Kyrgyz Agro-Input Enterprise Development Project (KAED) 46 Oshskaya Street Bishkek 720052 Republic of Kyrgyzstan Office phone: +996 (312) 903 708 / 09 Email: TenderKAED@kaed.kg Fax: + 996 (312) 500 584

4

Due to increased seasonal demand for agriculture machinery longer dispatch periods may be required. Some equipment may be manufactured only after receiving an order and demand longer delivery periods. If 6 weeks cannot be met, kindly, explain and propose delivery schedule.

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2.4

Tenderers Eligibility

For this tender the USA Government country code 935 (worldwide) applies for purchase of agriculture equipment. It permits firms and individuals from all countries to offer goods, works and services.

2.4.1

Bidders a. Tenderers shall provide the qualification information statement that the tenderer (including all members of a joint venture and subcontractors) is not associated, or have associated in the past, directly or indirectly, with a firm or any of its affiliates which have been engaged by the procuring entity to provide consulting services for the preparation of the design, specifications, and other documents to be used for the procurement of goods under this invitation for tenders. b. Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent practices. c. Bidders should be registered in country of production and should hold a valid VAT registration certificate. d. Bidders must submit a certificate together with their bid affirming that all items being supplied have been manufactured under ISO approved conditions.

2.4.2

Goods a. All manufactured items, consumable materials and spare parts under the contract shall have their origin in eligible source countries. The origin of materials may be distinct from the nationality of the tenderer. b. The documentary evidence of the eligibility of the materials and spare parts shall consist of a statement in the Price Schedule of the country of origin of the goods and services offered which shall be confirmed by a certificate of origin issued at the time of shipment.

As exceptions of foregoing paragraphs 2.4.1 and 2.4.2 are: a. firms of a country or goods manufactured in a country, if as a matter of law or official regulation, the Kyrgyz Republic or the USA prohibits commercial relations with that country. b. a firm sanctioned by the Kyrgyz Republic and the USA Anti-Corruption policies and sanction procedures.

2.5

Tenderers Qualifications

2.5.1

The tenderer shall furnish, as part of its tender, documents establishing the tenderers eligibility to tender and respective qualifications to perform the contract.

The documentary evidence of the tenderer’s eligibility to tender shall establish to the procurement entity’s satisfaction that the tenderer, at the time of submission of the tender, is from an eligible source country as defined under paragraph 2.4 and has met all statutory requirements. The tenderer must submit copies of:

2.5.2

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a. b. c. d. e. f. g. h. i.

2.6

Registration in country of production and VAT registration Certificate of Incorporation Trade Permit Indicate country of origin Provide evidence of availability of after sales services / back up and training schedule Indicate warranty period Indicate shortest delivery period Payment schedule should be clearly spelt out in your financial bid Manufactured equipment are according ISO standards

Joint Ventures and Bid for Lots

Any firm may bid independently or in joint venture either with domestic firms and/or with foreign firms.

A joint venture may be for the long term (independent of any particular bid) or a specific bid. The joint venture shall appoint one of the firms to represent it, and all its members shall sign the contract and be jointly and severally liable for the entire contract.

Bids are accepted for individual lots and / or for several lots and / or for all lots.

2.7

Cost of Tendering

The tenderer shall bear all costs associated with the preparation and submission of its tender. The Procuring Entity will in no case be responsible for those costs, regardless of the conduct or outcome of the tendering process.

2.8

Clarification of Documents

A prospective tenderer requiring any clarification of the tender document may notify the procuring entity in writing or by cable (telex, e-mail or facsimile) at the Procuring Entity’s address indicated in the invitation for tender (paragraph 1.2). The Procuring Entity will respond in writing to any request for clarification of the tender documents, which it receives no later than seven (7) days prior to the deadline for the submission of tenders, prescribed by the company. Written copies of the Procuring Entity’s response (including an explanation of the query but without identifying the source of inquiry) will be sent to all prospective tenderers that have received the tender document.

2.9

Amendment of Documents

2.9.1

At any time prior to the deadline for submission of bids, the Procuring Entity may, for any reason whether at its own initiative or in response to a clarification requested by a prospective bidder, modify the tender documents by amendment.

All prospective bidders who have obtained the bidding document will be notified of the amendment in writing, and such amendments / modifications will be binding on them.

In order to allow prospective tenderers reasonable time in which to take the amendment into account in preparing their tenders, the Procuring Entity, at its discretion, may extend the deadline for the submission of tenders.

Any request for clarification must be received seven (7) days before the tender closing date.

2.9.2 2.9.3

2.9.4

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SECTION 3: PREPARATION OF BIDS Conditions and Documentation 3.1

3.2

The tender prepared by the tenderer, as well as all correspondence and documents relating to the tender exchanged by the tenderer and the Procuring Entity, shall be written in both English and Russian language and provided in 3 copies each.

Prices of goods supplied are to be quoted in US Dollars as payment will be effected in US dollars.

Prices indicated on the price schedule shall be entered separately in following manner: a. The price of the goods quoted CIP 5 or / and EXW 6.Delivery destination is Kyrgyzstan with the specific delivery point notified in the technical tender document. b. Price of the spare parts packages for each machine. The tenderer should quote, apart from main equipment, separately for the mandatory spare parts as well as for recommended spare parts required for two (2) years’ operation (about 5-10% value of each piece of equipment). c. Charges for transportation, insurance, and other costs incidental to delivery of the goods to their final destination. d. Confirm in commercial bid that the goods are new and unused. e. Prices quoted by the tenderer shall be fixed during the tenderer’s performance of the contract and not subject to variation on any account. A tender submitted with an adjustable price quotation will be treated as non-responsive and will be rejected. f. The bidders shall bear the contract-making expenses and all taxes, duties and fees related with the contract award, contract making and performance of the undertaking. g. The Procuring Entity shall carry out the customs clearance procedures and take care of the customs duty and related expenses.

3.3

Bidders should avoid, as far as possible, corrections, overwriting, erasures or postscripts in the bid document. In case, however, any corrections, alterations, changes, erasures, amendments and / or additions have to be made in the bids, they should be supported by dated signatures of the same authorized person signing the bid documents.

The bid shall be neatly arranged, plain and intelligible. Each page should be signed. They should not contain any terms and conditions, printed or otherwise, which are not applicable to the bid.

3.4

The tenderer shall complete the tender and the appropriate prices in the tender documents, indicating the goods to be supplied, a brief description of the goods, their country of origin, quantity, and prices per unit and in total.

5

CIP is carriage and insurance paid to Bishkek, Kyrgyzstan. This term may be used irrespective of the mode of transport, including multimodal transport. CIP term is for custom duties and other import taxes unpaid, payment for which is the responsibility of the receiving party.

6 The EXW price shall include all duties, sales, and other taxes already paid or payable for the components and raw material used in the manufacture or assembly of the equipment offered in the bid. Manufactured goods include assembled goods.

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3.5

3.6

3.7

Bids shall be valid for a period of ninety (90) days from the date of submission of bids. A bid valid for a shorter period shall be rejected. Bids must be received by the Procuring Entity before the due date and time at the address specified in the tender document (paragraph 1.4). In the event of the specified date for the submission of bids being declared a holiday in Kyrgyzstan, the bid-closing deadline will be extended to the next working day up to the same time.

The Procuring Entity may ask for the bidder’s consent to extend the period of validity. Such request and the response shall be made in writing only to all potential bidders. The bidder is free not to accept such request without forfeiting the Tender Security. A bidder agreeing to the request for extension will not be permitted to modify his bid.

Warranty

The tenderer shall give the following guarantee in respect of the equipment supplied and work executed: 3.7.1 For a period of at least twelve (12) calendar months of reliable regular working of the equipment supplied. The tenderer shall be liable to replace any parts that may fail or show signs of defect in case of its own supplies/services under the condition provided for the contract and under proper use arising from faulty designs, materials or workmanship or from any act of omission of the tenderer.

3.7.2 All such replacements of defective parts mentioned above shall be made free of cost at site by the tenderer and taking the return of the defective parts of the tenderer’s works shall be tenderer’s responsibility and shall be made at tenderer’s own expense.

3.7.3 The warranty period starts to be effective from the day of final acceptance at place of delivery after inspection of approval for complete and undamaged delivery of equipment.

3.8

Tender Security Bond

3.8.1

The tenderer shall furnish, as part of his tender, a Tender Security of 5% of the total invoiced amount as offered in his tender.

The tender security is required to protect the Procuring Entity against the risk of the Tenderer’s conduct, which would warrant the security’s forfeit, pursuant to paragraph 7.9 and 7.10.

The tender security shall be denominated in US$ in favor of IFDC and in the form of a bank guarantee or bank draft issued by a reputable bank, in the form provided in the tender documents or another form acceptable to the Procuring Entity and valid for thirty (30) days beyond the validity of the tender.

Any tender not secured in accordance with paragraph 3.8.1 and 3.8.3 will be rejected as nonresponsive.

The unsuccessful bidder’s tender security will be discharged or returned as promptly as possible, but not later than thirty (30) days after the expiration of the period of tender validity prescribed by the Procuring Entity.

The successful bidder’s tender security will be discharged upon the tenderer signing the contract, pursuant to paragraph 6.2.3, and furnishing the performance security.

Unsuccessful bidder’s tender security forfeited:

3.8.2 3.8.3

3.8.4 3.8.5

3.8.6 3.8.7

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3.8.8

a. If a tenderer withdraws its tender during the period of tender validity specified by the Procuring Entity; or b. In case to a successful tenderer, if the tenderer fails: i. To sign the contract in writing within 7 days of award of contract or ii. To furnish performance security in accordance to paragraph 6.2.3 The Tender security will not be accepted in the form of cash or cheque.

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SECTION 4: SUBMISSION OF BIDS 4.1

General

The bids shall be neatly arranged, plain and intelligible. Each page of the bid should be signed. They should not contain any terms and conditions, printed or otherwise, which are not applicable to the bid.

Insertions, postscripts, additions and alterations shall not be recognized, unless confirmed by bidder’s authorized signature.

4.2

Deadline for Submission of Bids

Bids must be received by the Procuring Entity before due date and time at the address specified in the tender document: May 31, 2012 (see paragraph 1.4). In the event of the specified date for the submission of bids being declared a holiday for the Procuring Entity, Bishkek, Kyrgyzstan, the bid-closing deadline will stand extended to the next working day up to the same time.

4.3

Address Procuring Entity

International Fertilizer Development Center (IFDC) Kyrgyz Agro-Input Enterprise Development Project (KAED) 46 Oshskaya Street Bishkek 720052 Republic of Kyrgyzstan Office phone: +996 (312) 903 708 / 09 Email: TenderKAED@kaed.kg Fax: + 996 (312) 500 584

4.4

Late Bids

Any bid inadvertently received by the Procuring Entity after the deadline for submission of bids, will not be accepted and will be returned unopened to the bidder.

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Section 5: BID OPENING AND EVALUATION OF BIDS 5.1

Opening of Bids by the Procuring Entity

5.1.1

The technical bids will be evaluated to shortlist the eligible bidders. The technical bids of only the eligible bidders shall be considered for further processing (commercial evaluation).

Bidder(s) whose technical bid(s) is/are found to be acceptable and meeting the eligibility requirements as specified in this tender will be informed about date and time of the opening of the commercial bid.

The bidder’s authorized representative who attends the technical bid opening shall sign an attendance register as proof of having attended the bid opening.

The bidder’s name will be announced and recorded as well as formal criteria such a sealed envelope, signature on bids, and other details considered as appropriate by the Procuring Entity at the time of opening of the commercial bids. No technical details or prices will be discussed or presented at the tender opening session.

5.1.2

5.1.3 5.1.4

Note: Technically accepted competitive bids ONLY will be considered for opening of Commercial Bids.

5.2

Comparison of Bids

5.2.1

Only the short-listed bids from the technical evaluation shall be considered for commercial comparison.

The comparative statement shall also indicate the delivery schedule offered in the technical bid.

The bid not adhering to the delivery schedule / installation period as mentioned in paragraph 2.1 will be rejected.

5.2.2

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SECTION 6: AWARD OF CONTRACT 6.1

Award Criteria

The evaluation committee shall award the contract to the eligible bidder(s) whose (a) technical bid has been accepted; (b) provides appropriate warranty periods, in-country after sales services and spare parts supply system as well as training of machinery operators; and (c) offers a favorable price/value ratio. The lowest price offered does not automatically supersede other evaluation criteria; however, is an important criterion.

The Procuring Entity will award the contract to the successful tenderer(s) whose tender has been determined to be substantially responsive and has been determined to offer low prices, requested services, meeting deadlines, and provided further that the tenderer is determined to be qualified to perform the contract satisfactorily.

6.2

Notification of Award

6.2.1

Prior to the expiration of the period of tender validity, the Procuring Entity will notify the successful tenderer in writing that its tender has been accepted.

Within 7 (seven) days of award notification to winning Tenderer, the winning Tender shall raise in favor of the Procuring Entity a confirmed and irrevocable performance bond equivalent to 10% of total bid price. The performance bond shall be payable to Procurement Agency upon first written demand of “Non-performance by Tenderer”.

The notification of award will constitute the formation of the Contract but will have to wait until the award is finally signed by both parties.

Upon the successful Tenderer’s furnishing the performance security (as described under 6.2.2 above), its Tender Security will be discharged and the Procuring Entity will promptly notify each unsuccessful Tenderer and will discharge their Tender Security.

6.2.2

6.2.3 6.2.4

6.3

Signing of Contract

6.3.1

At the same time as the Procuring Entity notifies the successful tenderer that its tender has been accepted, the Procuring Entity will send the tenderer the Contract Form incorporating all agreements between the parties.

The successful tenderer(s) and the Procuring Entity shall sign the contract within 14 (fourteen) days from the date of notification of contract award unless there is an administrative review request.

6.3.2

6.4

Shipping Documents

The shipping documents shall consist of following documents (3 original copies of each in English and Russian): a. 3 copies of bill of lading or bill of carriage; b. 3 copies of certificate of origin; IFDC / KAED Tender Admin Agric Equipment, May 2012

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c. 3 copies of commercial invoice; d. 3 copies of loading certificate; e. 3 copies packing or parcel lists; f. 3 copies of a TR certificate for EU countries. g. Certificate of insurance naming IFDC/KAED as beneficiary An issued bill of lading must refer serial numbers of each piece of equipment and machines.

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Section 7: SPECIAL CONDITIONS OF CONTRACT 7.1

Consignee

The consignment as mentioned in the purchase order issued will be shipped in the name of: International Fertilizer Development Center (IFDC), KAED Project, Agriculture Seed Investment Program, 46 Oshskaya Street, Bishkek 720052, Republic of Kyrgyzstan.

7.2

Taxes and Duties

The prices quoted should be inclusive freight and insurance until destination: Bishkek, Republic of Kyrgyzstan (rented warehouse of procuring entity in Bishkek). Taxes and Duties payable in the country of origin, if any, are non refundable and should be included in the price. The consignment will be cleared by the Procuring Entity. However, the bidder should insure the consignment till actual delivery to the end user in Bishkek.

7.3

Performance Bank Guarantee

The successful bidder will be required to furnish the Performance Bank Guarantee in form of a Bank Guarantee for 10% amount of the purchase order. This bank guarantee shall remain valid for a period of one year covering the minimum warranty period.

7.4

Chartered Engineer Certificate

The successful bidder will be required to furnish the Certificate from a Registered Chartered Engineer certifying that the items supplied and their specifications are in compliance with the requirements of the Purchase Order issued by the Procuring Entity. The Certificate should contain also actual specification of the equipment.

7.5

Delivery, Taking Delivery, Inspection Conditions and Failures

7.5.1

The packaging shall be transport worthy confirming to international standards so as to prevent damage or deterioration of goods during transit to their final destination as indicated in this document. The packaging shall be sufficient to withstand, without limitation, rough handling during transit and exposure to extreme temperatures, salt and precipitation during transit and open storage. Packaging case size and weights shall take into consideration, where appropriate, the remoteness of the goods final destination and the absence of heavy handling facilities at all point in transit. Risk in goods shall continue with supplier until goods are delivered in good condition and installed at end user’s site.

7.5.2

After arrival of the delivered equipment in the Republic of Kyrgyzstan, all equipment has to be inspected for compliance with the specifications, completeness and potential transport damages. This inspection is carried out within seven (7) days by a team to be formed by the supplier, the recipient and an international chartered inspection office and with attendance of the firm’s representatives or its authorized representative. The consignee will arrange for the inspection.

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In case of damages, the goods covered by the tender are replaced with new ones within sixty (60) days with all related expenses being borne by the supplier. The supplier may not make any claims in such a case. All loss and damage is borne by the seller firm. If the firm or its authorized representative is not present during the inspection or does not sign the inspection report, a protocol signed in the presence of two witnesses is notified to the firm. In such a case, the decision of the Inspection Committee shall be valid.

7.5.3

Penalty If the firm concerned abandons its undertaking partially of fully after conclusion of the contract, the contract is terminated and its performance bond is forfeited as penalty without the need to issue a protest and to obtain a court order.

If the undertaking is not fulfilled within the time period granted, except due to force majeure, a notice with maximum 30 days penal period from the date of the notice is sent to the firm, asking the firm to fulfill its obligations. A delay penalty at the rate of two (2) % of the contract price for each day of delay shall be charged.

If the firm again fails to fulfill its obligation within this 30-day period, the Procuring Entity is free to wait up to 25 days by applying the delay penalty or will terminate the contract.

7.6

Payments

Payment terms shall be in accordance with the international commercial practices applicable to the specific goods. Contracts for supply of goods shall provide for full payment on the delivery and inspection, and if so required, of the contracted goods except for contracts involving assembly and installation, in which case a portion of the payment is made after the Supplier has complied with all its obligations under the contract. Following payment terms are suggested: - Payment is effected by irrevocable letter if credit (LOC).

- Seventy percent (70%) of the payment will be made against submission of dispatch documents and twenty percent (20%) against successful delivery to Procuring Entity warehouse and inspection certified by a Registered Chartered Engineer for compliance with specifications, completeness and damage.

The remaining ten percent (10 %) are paid after a. final assembly of equipment, if required, at seed farms locations; and b. submitting of a Bank Performance Guarantee Bond (equivalent to 10% of purchase order) issued by a reputable international bank and valid for 12 months covering the minimum warranty period.

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7.7

Returning of Performance Guarantee Bond

After it is established that the whole undertaking has been fulfilled in accordance with the Contract and the Specifications, and after the obligations related with warranty rights are fulfilled and after expiration of the warranty period of minimum 12 months (the warranty period starts to be effective from the day of final acceptance, see paragraph 3.7), the performance bond shall be returned with an approval to that effect of the Procuring Entity. On performance and completion of the contract in all respects the Performance Guarantee Bond will be returned without any interest.

7.8

Rejection of any Bidders

The Procurement Entity reserves the right to accept or reject any tender, and to annul the tendering process and reject all tenders at any time prior to contract award, without thereby incurring any liability to the affected tenderer or tenderers or any obligation to inform the affected tenderer or tenderers of the grounds for the Procuring Entity’s action.

7.9

Conflict of Interest

A firm participating in this tender shall not have a conflict of interest. Any firm found to have a conflict of interest shall be ineligible for award of a contract. A firm shall be considered to have a conflict of interest if: a. such firm submits more than one bid, either individually or as a joint venture partner in another bid. This will result in the disqualification of all bids in which the Bidder is involved; b. such firm (including its personnel) has a close business or family relationship with a professional of the procuring entity and/or evaluation committee who (i) are directly or indirectly involved in the preparation of the bidding process of this contract; or (ii) would be involved in the implementation or supervision of this contract; c. such firm that has been barred from participating in tenders temporarily or permanently by decisions of the Kyrgyz Republic and the United States of America and their relevant ministries.

Bids of those participating in the tender by disobeying the aforementioned shall be considered invalid and their bid bonds shall be forfeited. It shall not be offset towards debt. If a contract has been made, the contract shall be terminated as a penalty; if a second bidding is held, any loss and damage that will accrue against the Procuring Entity shall be collected legally.

7.10

Fraud and Corruption

The Procuring Entity requires that tenders observe the highest standards of ethics during the procurement process and execution of contracts. In pursuance of this policy, the Procuring Entity defines, for the purpose of this provision, the terms set forth as follows: a. “Corrupt practice� means offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of this tender in the procurement or in contract execution;

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b. “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 Procuring Entity, and includes collusive practice among tenderer (prior to and after tender submission) designed to establish tender prices at artificial non-competitive levels and to deprive the Procuring Entity of the benefits of free and open competition; c. “Collusive practice” is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party; d. “Coercive practice” is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party; e. “Obstructive practice” is deliberately destroying, falsifying, altering, or concealing of evidence material to the investigation of making false statements to investigators.

The Procuring Entity will reject a proposal for award if it determines that the tenderer recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question.

7.11

Arbitration and Jurisdiction of Court

7.11.1 All disputes of any kind arising out of supply, commissioning, acceptance, warranty maintenance, etc, shall be referred by either party after issuance of 30 days notice in writing to the other party clearly mentioning the nature of dispute to a single arbitrator acceptable to both parties. The Procuring Entity shall be authorized to settle all kinds of disputes that may arise from the Administrative and Technical Specifications and from the Contracts to be made.

7.11.2 The parties shall use their best efforts to settle any disputes arising out of or in any way connected with this contract. Any dispute that cannot be amicably resolved within fifteen (15) days after receipt by one party of the other’s request for amicable settlement shall, at the Procuring Entity’s sole determination, be resolved under either the Laws of the State of Alabama, USA, or the applicable Rules of Arbitration of the International Chamber of Commerce.

The Laws of the State of Alabama 7, USA, shall govern any arbitration under ICC rules and the arbitration shall be in English. The resolution determined under this clause shall be final and binding upon both parties. Moreover, any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting the Contract. The language of this Contract shall be interpreted according to its fair meaning and not strictly for or against either party.

7.11.2 The address of the Procuring Entity for settling any kind of legal disputes is as follows: International Fertilizer Development Center (IFDC) Reservation Road, P.O. Box 2040 Muscle Shoals Alabama, 35662 USA Phone: + 1 (256) 381 6600 7

KAED Project in Bishkek, Kyrgyzstan, is implemented by IFDC located in Alabama, USA.

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7.12

Force Majeure

The Procuring Entity may consider relaxing the penalty and delivery requirements as specified in this document, if and to the extent that ,the delay in performance or other failure to perform its obligations under the contract is the result of Force Majeure. Force Majeure is defined as an event of effect that cannot reasonably be anticipated such as acts of God (earthquakes, floods, storms, etc), acts of States, the direct and indirect consequences of wars (declared or undeclared), hostilities, national emergencies, civil commotion and strikes at successful Bidder’s premises.

8

These administrative specifications consist of 8 articles.

Annex 1. Tender Security Form

ATTACHMENT: Lots and Technical Specification of Equipment

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Annex 1: Tender Security Form (example)

Bank Guarantee for Tender Security Invitation for Tender No: ____________

Date: _____________

Tender Lot: ___________ Tender Guarantee No.: We have been informed that [insert name of tenderer]) (hereinafter called “the Tenderer”) intends to submit to you its Tender dated [insert date of Tender] (hereinafter called “the Tender”) for the supply of [description of goods and related services].

Furthermore, we understand that, according to your conditions, Tenders must be supported by a Bank Guarantee for Tender Security.

At the request of the Tenderer, we [insert name of bank] hereby irrevocably undertake to pay you, without cavil or argument, any sum or sums not exceeding in total an amount of US$ [insert amount in figures and words] upon receipt by us of your first written demand accompanied by a written statement that the Tenderer is in breach of its obligation(s) under the Tender conditions, because the Tenderer: a. Has withdrawn its Tender after opening of Tenders but within the validity of the Tender Security; or b. Refused to accept the Notification of Award within the period as stated in the tender document; or c. Failed to furnish Performance Security within the period as stipulated in the tender document; or d. Refused to sign the Contract Agreement by the time specified in the tender document; or e. Did not accept the correction of the tender price following correction of the arithmetic errors in accordance with the Instruction to Bidders.

The guarantee will expire: a.

If the Tenderer is the successful Tenderer, upon our receipt of copies of the contract signed by the Tenderer and the Performance Security issued to you in accordance with the Instructions to the Bidders; or b.

If the Tenderer is not the successful Tenderer, thirty (30) days after the expiration of the Tenderer’s Tender validity period, being [date of the expiration of the Tender validity plus 30 days].

Consequently, we must receive at the above mentioned office any demand for the payment under this guarantee on or before that date.

Signature: _________________________ IFDC / KAED Tender Admin Agric Equipment, May 2012

Seal: ___________________________ 22