Business Rules for Reverse Auction
HPCL – Mumbai Refinery proposes for tender 11000038-HB-48002 through reverse auction mode. HPCL has made arrangements
with M/s C1 India, Delhi, who shall be HPCL’s authorized service provider for the same. Please go through the guidelines given
below and submit your acceptance to the same.
1. Online reverse auction shall be conducted by HPCL from its Mumbai refinery, on a pre-specified date, while the vendors shall be
quoting from their own offices / place of their choice. Internet connectivity shall have to be ensured by each agency themselves.
In extreme case of failure of Internet connectivity, (due to unforeseen circumstances, excluding power failure), fax communication
shall have to be made immediately. Fax to be sent to Fax No. 022 25541054, addressed to Shri.Shaji Idicula, Dy.General
Manager – Materials MR / M/s C1 India may decide to extend the bidding time, at their discretion, but not as your right.
M/s C1 India shall arrange to demonstrate / train your nominated person(s), without any cost to you. They shall also explain you
all the Rules related to the Reverse Auction / Business Rules Document to be adopted along with bid manual (which is available
on the website – http://eproc.hpcl.co.in:88 .You are required to give your compliance on it before start of bid process.
2. The Bid Amount of the bidder for the Sealed Bid and for the Reverse Auction shall be the Delivered Cost net of Cenvat, VAT &
Service tax set-offs as applicable. The net delivered cost is on the basis of the Basic Unit Rates quoted by the bidders and
Loading factors considered as mentioned in the excel sheet (provided to the bidders prior to the Dynamic Sealed Bid),
3. Start Bid Price shall be determined on the basis of the lowest offer received during Dynamic Sealed Bid. Prices of various bidders
including lowest bidder shall get established only at the conclusion of Reverse Auction event.
4. HPCL will pre-decide the commercial loading, if any, on the basis of the taxes & duties quoted by you, and loading on account of
commercial deviations if any. The loading factors shall be intimated to you in advance.
5. Procedure of Reverse Auctioning
Auction shall be in two partsi) Dynamic Sealed Bid and ii) English Reverse (no ties) {Reverse Auction}.
i. Dynamic Sealed Bid, in which the Bidders are required to upload the excel sheet with their Basic unit rates duly filled in. The
computed net delivered cost as per the excel sheet should be entered in the fields provided for the same, at the time of
submission of Dynamic Sealed Bid. Please note that in case of any discrepancy between the delivered costs entered online in
the fields provided, and the computed delivered cost as per the uploaded excel sheet, then the amount entered online will be
taken as the net delivered cost quoted by the bidder for that item. Hence, bidders are requested to exercise utmost caution
while entering their delivered cost online. As a “Good Practice”, it is suggested that the Bidders copy the delivered costs from
the excel sheet and paste the same in the respective delivered cost fields provided online. The Sealed Bid submission shall
be open for a duration of 30 minutes, so that all the participating bidders can enter their data correctly. In this type of Auction,
Vendors shall be allowed to quote / revise the unit rates till the completion of the duration of the Dynamic Sealed Bid, by
uploading the revised excel sheet, before the expiry of the duration of the Sealed Bid. All the participating Bidders must submit
at least one Bid during the Dynamic Sealed Bid process. The bidders will be allowed to submit any number of bids till the
completion of the duration of the Dynamic Sealed Bid. The last bid submitted by any bidder before the conclusion of the
Dynamic Sealed Bid will be taken as the final bid for determining the Start Bid Price for the Reverse Auction. Bidders will not
be able to see the Bids of other Bidders as well as the Lowest Bid for any Line Item. The Dynamic Sealed Bid is only for
determining the Start Bid Price for the Reverse Auction, and not for the purpose of determining the lowest bidder. However,
the unit rates (as per the final bid) quoted by the bidders during the Dynamic Sealed Bid shall be prorated to match the itemwise Delivered amount quoted by the bidders at the conclusion of the Reverse Auction process.
ii. English Reverse (no ties) {Reverse Auction}: HPCL will display Start Bid price (SBP), which shall be visible to the all vendors
at the start of the Reverse Auction. Bidders shall be required to start bidding now from this Start Bid Price / Opening Price.
iii. The bid decrement amount shall be specified by HPCL before start of Reverse Auction. The bidder can bid lower than the
prevailing Lowest Bid of any item at any time during the auction by one decrement or multiples of the Bid decrement.
iv. After the completion of English Reverse (no ties), the item-wise Closing Price (CP) of all participating bidders shall be
available. All the bidders must submit the final price confirmation through fax to HPCL (Fax No. 022 25541054.
v. The Closing Price(s) offered by the bidders at the conclusion of the Reverse Auction shall be kept valid for a minimum period
of One Month from the date of the Reverse Auction.
6. Successful bidder / vendor shall be required to submit the final prices quoted during the English Reverse (no ties) in HPCL Price
Format after the completion of Auction to HPCL, duly signed and stamped as token of acceptance without any new condition
other than those already agreed to before start of auction.
7. English Reverse (no ties) Auction shall be for a period of 60 minutes. If a bidder places a Bid in the last 5 minutes of Closing of
the Auction, the auction shall get extended automatically for another 5 minutes. In case, there is no Bid in the last 5 minutes of
closing of Auction, the Auction shall get closed automatically without any extension.
8. During English Reverse (no ties), if no bid is received within the specified time, HPCL, at its discretion, may decide to revise
Sealed Bid price and start the Reverse Auction once again / scrap the reverse auction process / proceed with conventional mode
of tendering (opening of Priced bids submitted by you along with your un -priced bids).
Your bid will be taken as an offer to sell. Bids once made by you, cannot be cancelled / withdrawn and you shall be bound to sell
the material as mentioned above at your final bid price, and as per the specifications mentioned in the tender. Should you back
out and not make the supplies as per the rates quoted, or in case the material supplied is not as per specifications mentioned in
the tender, HPCL shall take appropriate action as per the terms & conditions mentioned in Tender .
9. You shall be assigned a Unique User Name & Password. You are advised to change the Password and edit the information in the
Registration Page after the receipt of initial Password to ensure confidentiality. All bids made from the Login ID given to you will
be deemed to have been made by your Company.
10. You shall be able to view the following on your screen along with the necessary fields in the English Reverse (no ties) {Reverse
Auction}:
a. Item-wise Leading Bid in the Auction (Delivered Cost)
b. Bid Placed by you
c. Start Bid Price.
11. At the end of the Reverse Auction, HPCL will decide the successful bidder, basis item-wise lowest delivered cost. HPCL’s
decision on award of Contract shall be final and binding on all the Bidders.
12. HPCL shall be at liberty to call the lowest bidder for negotiations / cancel the reverse auction process / tender at any time, before
ordering, without assigning any reason.
13. HPCL shall not have any liability to bidders for any interruption or delay in access to the site irrespective of the cause.
14. All other terms and conditions and specifications shall be as per the tender and other correspondences till date.
15. Please note that in case you have quoted any minimum amount towards Freight, TPI etc., the same will have to be taken into
consideration by you at the time of bidding during the Reverse Auction. PO will be placed as per the loading factors advised to
you without any changes.
16. You are required to submit your acceptance to the terms / conditions / modalities given above before participating in the reverse
auction.
Terms & Conditions of Reverse Auction
1. PROXY BIDS : Proxy bidding feature is a pro-supplier feature to safe guard the supplier’s interest of any Internet failure or to
avoid last minute rush. The Proxy feature allows Bidders to place an automated bid against other Bidders in an auction and bid
without having to enter a new amount each time a competing Bidder submits a new offer. The bid amount that a Bidder enters is
the minimum that the Bidder is willing to offer. Here the software bids on behalf of the supplier.
- The proxy amount is the minimum amount that the Bidder is willing to offer. During the course of bidding, the Bidder cannot
delete or change the amount of a Proxy Bid.
- Bids are submitted in decrements (decreasing bid amounts). The application automates proxy bidding by processing proxy bids
automatically, according to the decrement that the auction originator originally established when creating the auction,
submitting offers to the next bid decrement each time a competing Bidder bids, regardless if competing bids are submitted as
proxy or standard bids.
2. GENERAL TERMS & CONDITIONS: Bidders are required to read the “Terms and Conditions” section of the auctions site
http://eproc.hpcl.co.in:88 using the Login Ids and passwords given to them.
3. OTHER TERMS & CONDITIONS:
- The Bidder shall not involve himself or any of his representatives in Price manipulation of any kind directly or indirectly by
communicating with other suppliers / bidders.
- The Bidder shall not divulge either his Bids or any other exclusive details of HPCL to any other party.
- HPCL’s decision on award of Contract shall be final and binding on all the Bidders.
- HPCL along with C1 India can decide to extend, reschedule or cancel any Auction. If any changes are made by HPCL and / or
C1 India after the first posting and the Bidder continues to access the site after that time, it shall be presumed that the bidder
has accepted the changes.
- HPCL & C1 India shall not have any liability to Bidders for any interruption or delay in access to the site irrespective of the
cause.
- HPCL & C1 India shall not be responsible for any damages, including damages that result from, but are not limited to
negligence. HPCL & C1 India will not be held responsible for consequential damages, including but not limited to systems
problems, inability to use the system, loss of electronic information etc.
N.B.
- All the Bidders are required to submit the Agreement Form duly signed to C1 India Pvt. Ltd. After the receipt of the Agreement
Form, Log in ID & Password shall be allotted to the participating bidders.
- After the completion of the Auction event, all the Bidders have to submit the final offered Price in the format, immediately to
HPCL for further proceedings. The unit prices quoted by the bidders during the Dynamic Sealed Bid shall be prorated as per
the final bid prices.