Telephone 2816701 Reply should be addressed to The Admiral Superintendent PPPL/0769/B/2/RC-PIPE M/s.

Flash Forge (P) Ltd 237 'D'Brock Autonagar Viskahpatham - 530 012 EXTENSION OF RATE CONTRACT FOR REPAIR/RENEW AL OF SYSTEM PIPES - IN VESSELS Dear Sirs,
1. Naval Dockyard

Visakhapatnam -Mar 2011

Please refer to the following--

(a) ND(V) rate contract PPPL/0769/B/2/RC-PIPE dated 16 Feb 2010. (b) Your letter FFPL/ND(V)/RC/PIPE/01 dated 28 Jan 2011. (c) ND(V) fax PPPL/0769/13/2/RC-PIPE dated 19 Feb 2011 (a) Your acceptance letter FFPL/ND(V)/RC/PIPE/02 dated 25 Feb 2011 Your acceptance at sl .1(d) ibid, has been accepted for extension of existing rate contract for repair/renewal of sys tern pipes as per scope of work and specifications onboard IN Vessels The payments will be made at actuals for each work order. The cost breakdown is as follows.
2.

SL.N O

DESCRIPTION OF WORK DEGUTTING/REGUTTING

UNIT RATE FOR EACH SERIAL TO BE QUOTED BY THE FIRM (i)

(a) (b) (c) (d)

Deigutting and regutting of system pipes, tallying of pipes which may include hot work, removal and transportation to work centre and reinstallation of each itern back tn the System as required Upto 3 inches 3-5 inches 5-7 inches
7-10 inches

Bb

Rs.1200 Rs.1500 Rs.2100 Rs.3600 cost per meter of pipe of specified diameters (i) (ii) (iii) (iv) (v)

2 PIPING WORK

(signature of the contractor)

(signature of ND(V)Rep) Contd.

(a)

Welding. Repair of pipelines by welding including welding of flanges/fittings using suitable electrode followed by pressure testing upto 1.5 times working pressure and holding for 20 min without drop in pressure.

Cu (Sq cm) Rs.583

CuNi (Sq cm) Rs.64 1

Ti (Sq cm) Rs.116 6

Al (Sq cm) Rs.699

Steel/ GI (Sq cm) Rs.360

(b)

Brazing.Repair of pipelines by brazing including brazing of flanges/ fittings followed by pressure testing upto 1.5 times working pressure and holding for 20 min without drop in pressure.

Repairs include cost of welding/ filler rod/ material and NDT testing of joint including Radiography as per procedure. Serial 2 (a) is used when only welding is required for complete repairs Silver Brazing Brass (Sq cm) (Sq Rs.980 cm) Rs.58 0

(c)

New pipe fabrication. Fabrication of new spools as per sample/ templating onboard. This includes supply of material and services.
Pipe sizes (OD) 6,8,12,16,20,25,30,38, 44,5,57176.1,88,9,108,/33,159 , 193.7,219.1 and 267 mm

Repairs include cost of welding/ filler rod/ material and NDT testing of joint including Radiography as per procedure. Serial 2 (a) is used when only brazing is required for complete repairs Cu CuNi Ti & SS Al Steel/ Rs.2700 Rs.43 Rs.218 Rs.430 GI 50 00 & 0 Rs.120 Rs.350 0 0 Quote Quote only for all upto sizes 108 mm Pipe Fabrication charges are for new complete spool (per kg of overall finished weight) which in inclusive of templating, bending, required end fittings (flanges/ unions/ nipples/ check nut), welding/ brazing cost as required for fabricating new complete spool. The cost also includes HPT and NDT charges as per procedure (i) Aluminiu m bronze Rs.8400 (ii) MS Rs.84 00 (iii) Gun metal Rs.760 0 (iv) Brass Rs.760 0 (v) Titaniu m Rs.760 0 Quote only upto 108 mm Quote for all sizes Quote for all sizes

Other Material 3 Requirernent. (a) Flanges. Provision of flanges for- pipe as per sample/ drawing,
(signature of the contractor)

(signature of ND(V)Rep) Contd.

(b)

Check Nut, union, nipple sets. Provision of Check nut/ union/ nipple for pipe as per sample/ drawing. (Per Kg of finished weight)

Cost of items if only new flanges are required to be replaced individually on an old pipe (per kg of finished weight of end fitting). Cost includes welding/ filler rod/ material and NDT testing of joint including Radiography as per procedure MS SS Brass Titaniu Rs.2800 Rs.65 Rs.560 m 00 0 Rs.230 00 Cost of items if only new check nut/ union/ nipple are required to be replaced individually on an old pipe (per kg of finished weight of end fitting). Cost includes welding/ filler rod/ material and NDT testing of joint including Radiography as per procedure. MS Al Rs.850 Rs.12 Upto 50NB Rs.1400 50 50 to 100 NB Rs.24 00

(c)

Clamping. Post installation This includes material. fabrication and welding insitu. 3mm Rubber sheet to be provided between clamp and pipe, ( per set of clamp)

Pipe upto 108 mm will be bent on bending machine and for sizes above 108 mm elbows will be made and welded to the spools if possible for installation onboard. * Ti pipe upto 108 mm dia Ps 21800 and above 108 OD Rs 29600 per kg. ** SS pipe upto 108 mm dia Rs 3500 and above 108 ob is 4600 per kg. Note. Service tax and APVAT extra on above rates. Certificates . Excise Duty exemption certificates would be issued on a specific request. ( a ) F o r i s s u e o f E xc i s e D u t y E xe m p t i o n ce r t i f i ca t e t h e p a rt n o . . description and quantity of material/items are to be clearly indicated in the requisition letter by the firm. 3. The rate contract will be valid during the period of two years upto 21 Feb 2013. 4 Guiding Instructions/ Directives. a) "The contractor if covered under the Contract Labour (RSA) Act 1970 is under statutory obligation to comply with the provisrons of the Act and Rules regarding payment of wages and other matters and any breach by the contractor to comply with the provisions of the statute will be viewed seriously and will entail penalty to be imposed by ASD and may result1-__D9\-awarding further contracts in future (b) You are required to adhere to specifications/ scope of work mentioned in our tender enquiry PPPL/0769/13/1/RC-PIPE dated 2 3 F e b 2 0 0 9 . the No.

(b) You are not to employ any of the serving dockyard personnel or to take any asmstance what so ever either directly or indirectly from any of the dockyard workshops/ facilities either in form of men or material. (b ) Yo u a re t o o b s e r ve a ll s e cu ri t y r u le s, d i sc ip li n e in t h e N a va l Dockyard/ onboard Naval Vessel as directed. (signature of the contractor) (signature of ND(V)Rep) Contd.

(c)

You may be required to work during silent hours/holidays, at no

additional cost
(b) You are liable to pay for damages caused to Government property on account of negligence by your staff, 5 The Terms and Conditions of the contract are as follows - (a) General (1) All communications on the subject are to be addressed to the A d m i r a l S u p e r i n t e n d e n t . N a va l Do c k ya r d , V i s a k h a p a t n a m f o r attention of Manager Planning who will be the accepting officer for the purpose of this contract, (ii) No Claim shall be admissible, except grant of extension of time within the clause of liquidated damages if imposed as limited by force majeure clause_ (ii)The work shall be executed as per the pro-gramme drawn up by the ND(V). No claim for idle labour or delay in completion of the work shall be entertained (iv) The contractor while executing work in ND(V) and on board ships will be governed by the Official Secret Act and also will be subject to security checks as per rules and regulations in force from time to time (iv) Unless otherwise specified in the work order, power supply and crane assistance will be provided for the works undertaken inside the Naval Dockyard premises on request through user department_ However, no claim on account of jdle labour arising due to failure of services shall be entertained (v1) The concerned user department officer is to be informed of the type and a ea of work prior to commencement of work.

(vii)You are requested to obtain photo passes well in time for all personnel employed by you in executing the order. It shall be the contractor's responsibility to obtain the necessary Police verification for all personnel prior submission of the application form for photo passes. ( v i i i ) " I t i s yo u r r e s p o n s i b i l i t y t o r e g i s t e r y o u r f i r m wi t h ALC(Central)\, Visakhapatnam in terms of the contract labour (regulation and abolish) Act 1970 and to meet all terms/conditions and requirements contained therein, You are also required to ensure provident fund, payment of minimum wages to workers conforming to Al' Govt Act. and insure your employees against accident and death, and indemnify the Admiral Superintendent, Naval Dockyard, Visakhapatnam against any liability with respect to claims, injury or death of any person employed by you for the subject work.
(b) alttlorms. The contractor shall take adequate and necessary precautions regarding the safety of the ship, men and materials. The contractor is to ensure that his labour force uses all safety gear as laid down in Industrial & Labour Regulations while working or jobs entrusted o n t h i s r a t e c o n t r a c t . H e s h a l l a l s o i n d e m n i f y t h e A d m i r a l Superintendent, Naval Dockyard. Visakhapatnam against any claim for compensation arising out of the negligence on contractor's part He is also to insure all his labourers againsi accident/risk,

(c) Performance Security Deposit The firm would b required to 'submit a one time standing performance security depositjin the form of Bank Guarantee/FDR issued by publt sector bank or a private sector bank authorized to conduct government business (ICICI bank Ltd Axis months(3 years + 2 months) along with their (d) first work order in favour of ASD

Inspection The job will be inspected by MQC and accepted by M(SAX) or any
(signature of the contractor) (signature of ND(V)Rep) Contd.

officer nominated by him. (e) Job Completion The job is to be completed within the time frame given in work order. (e) Payment Terms_ (i) Job Completion Certificate. The work will not be considered complete and taken over unless a suitable completion certificate has been issued by the Manager (SAX)/ or any suitable officer nominated by him (ii) Liquidated Damocles. Liquidated damages for non-completion of the work within the stipulated time will attract charges at rate of 0 5% per week s delay or part thereof for delays attributable to the firm, subject to a maximum of -10% on the executed work value_ (iii) Payment, 100% payment on satisfactory completion of the job on certification by M(SAX) Or any Officer nominated by him. (iv) Taxes Income Tax as applicable will be deducted at source 6. On satisfaotory completion of work orders placed by ND(V) under this contract, you are requested to forward your bill in quadruplicate duly supported with the following documents for arranging payment direct to you.(a) An advance stamped receipt for the amount billed, (a) Original copy of work order and any extension letter issued by the Yard. (a) Ink signed copy of Job completion certificate in duplicate obtained from MSAX Dept (a) Xerox copy of rate contract agreement. (b) NEP- MODE-Payment details Name of the contractors/suppliers, Address, PAN No., Name of the Bank , A/c No., Nature of account. Bank Address (with PIN code), MICR code No and Unit code no NEFJ IFSC Code, E-MAIL ID, Contact NO., TIN NO ), Bank Address with PIN code), MICR code No and Unit code no duly signed by the banker). 7. Termination of Contract. (i) The contract is liable to be terminated by ASD(V) if he holds a view that the contractor is not technically or financially viable to undertake the work.
(i) The

contractor is expected to mobilize and employ sufficient resources and manpower to achieve scheduled targets as and w h e n r e q u i r e d . T H E C O N T R A C T t S L I A B L E T O - B E TERMINATED IF THE PACE OF THE EXECUTION OF THE CONTRACT IS FOUND TO BE &OW OR WORKMANSHIP IS FOUND 10 BE SUBSTANDARD AT ANY STAGE. FURTHER, T END ER EN Q U I R Y MA Y N O T B E FL O AT E D T O S UC H CONTRACTOR FOR THE SIMILAR CASES IN FUTURE. (i) Risk and Cost. You are also liable to pay the extra cost involved in getting the work done, in case you tail to undertake ot complete the work and because of that the department is forced to get it done or completed through some other agency Of contractor.
Force Majeure

(a) Should any Force ma;eure circumstances arise, each of the Contracting parties shall be executed for the non-fulfillment or for the delayed fulfillment of any of its contractual obligation. if the affected party informs the other party in writing within 15 days of its occurrence. (b)
Force rriajeure shall mean fires, floods, natural calamities or other acts such as war, turmoil, strikes (as not limited to be establishment of the Supplier). sabotage. explosions and other quarantine restrictions beyond the control of either party. (signature of the contractor) (signature of ND(V)Rep) Contd.

(c)

It is understood and agreed between the parties hereto that the right s and obligat ion s of the partie s shall be deemed to be in suspension during . the continuance of the Force majeure event as aforesaid and the said rights, and obligations shall automatically revive upon the cessation of the intervening Force majeure event. The period within which the rights and obligations of the parties shall be in suspension due to Force majeure event shall not be considered as a delay with respect to the period of delivery and/or acceptance of delivery under the Contract or otherwise to the detriment of either party (d) Not withstanding the provisions of the immediately foregoing clauses, it's further understood and agreed between the parties hereto that in the event of any Force majeure persisting for an uninterrupted period exceeding 6 (six) months, either party hereto reserves the right to terminate this Contract upon giving prior written notice of 30 (thirty) days to the other party of the intention to terminate without any liability other than reimbursement on the terms provided in this agreement for the goods received.

9. (a)

Arbitration.

In the event of any question, dispute, difference arising under these conditions of contract the same shall be referred to the arbitration of the Secretary. Ministry of Defence, Government of India or such other person as may be nominated by him It will be of no objection if the arbitrator is a Government servant, and that he had to deal with the matters to which this Contractor relates Of that the course of his duties as a Government servant he has expressed views on all or any of the matters in dispute or difference. The Award of the arbitrator shall be final and binding on the parties to this contract, (a) The Arbitrator may extend the time with the consent of the parties_ from time to time, for making and publishing the Award. Upon any arid every such reference the assessment of the costs incidental to the reference and Award respectiv&y shall be at the discretion of the arbitrator

(b) Subject to the aforesaid, the Arbitration Act 1940 and the rules made there under and any statutory modifications thereof for the time being in force shall be deemed to apply to the Arbitration proceedings under this Article. (c)
W ork under this contract shall continue during the arbitration /proceedings and no payment due to or payable by the Owner the, than for the items involving arbitration shall be withheld on account of such proceedings_

(d) (e)

The venue of Arbitration shall be Viskhapatnam City

A demand for the arbitration shall be in writing and made within six months from the date of termination of contract

(f)

The contractor is required to give the acceptance/or resection to the clauses above (16 (a) to (I)). It is stipulated that an omtssion to answer specifically in this regard will be deemed as an acceptance of the Arbitration clauses (16 (a) to (1))

10. Four copies of the contract are enclosed. You are requested to sign and retain one copy of this contract on your acceptance of the contractual terms and conditions arid return remaining three copies. 11 This has the concurrence of FA to ASD vide RC No SI (7 Mar 2011 and approval of CFA vide note Li ,' dated 2011 of file PPPL/0769/B/2/RC-PIPE dated ic Mar

(SK jhai) Captain (signature of the contractor) (signature of ND(V)Rep) Contd.

Deputy general manager (MS&RP)

For Admiral Superindent

Address and seal of the firmMis. Flash Forge (P) Ltd 237 'D'Blook_ Autonagar Viskanpatnarn 530 012

Internal Distribution
FA TO ASD MSAX

(signature of the contractor)

(signature of ND(V)Rep) Contd.