KENYA PIPELINE COMPANY LIMITED

REQUEST FOR PROPOSALS (RFP)

SELECTION OF CONSULTANTS FOR THE PROPOSED LIQUEFIED

PETROLEUM GAS FACILITIES DEVELOPMENT IN MOMBASA AND
NAIROBI

Consulting Services Required:

Preliminary Engineering Design, Tender Documentation and Construction

Supervision

REFERENCE NUMBER: KPC/PU/094-OT/17-18

FEBRUARY 2018

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INTRODUCTION

1. This Standard Request for Proposals (SRFP) has been prepared for use by public
entities in Kenya in the procurement of consultancy services and selection of
consultants.

2. The SRFP includes Standard form of Contract for Large Assignments and small
assignment which are for lump sum or time based payments.

3. A separate SRFP has been provided for selection of individual professional

consultants.

4. The General Conditions of Contract should not be modified and instead the Special
Conditions of Contract should be used to reflect the unique circumstances of the
particular assignment. Similarly the information to consultants should only be
clarified or amended through the Appendix to information to Consultants.

5. This SRFP document shall be used where a shortlist of consultancy firms already
exist or has been obtained through a shortlist after an advertisement of Expression
of Interest for Consultancy required.

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SECTION I- LETTER OF INVITATION

Date: FEBRUARY 2018

Tender REF No.: KPC/PU/094-OT/17-18

Tender name: Proposed Liquefied Petroleum Gas Facilities Development in

Mombasa and Nairobi

1.1 Kenya Pipeline Company Limited invites sealed tenders from eligible service
providers to offer Preliminary Engineering Design, Tender Documentation and
Construction Supervision for the Proposed Liquefied Petroleum Gas Facilities
Development in Mombasa and Nairobi.

1.2 Interested eligible candidates can view and download the documents from the
website www.kpc.co.ke at no cost. Bidders will be required to register on the
website and ONLY email queries to [email protected]. No other email
addresses should be used. No other email addresses shall be used and KPC shall
not be liable if bidders choose to send their queries to other email addresses.

1.3 Interested eligible candidates shall attach the following mandatory requirements and
place them in a separate envelope marked “Mandatory Requirements”

a) Certificate of Incorporation/Registration (Documents in a foreign

language must be accompanied by a certified English translation).
b) Valid CR12 form from registrar of companies for Local firms.
c) International firms must partner with Local firms in a joint venture
arrangement for these services.
d) Firms that bid jointly should submit duly signed syndicate agreements
between the parties, with the roles of each party clearly defined. (All
foreign firms bidding must be in a joint venture/consortium with a local
firm whose stake will be a minimum of 40%).
e) Tax Compliance Certificate [for Local Companies in the Joint venture] or
Certificate of Compliance issued under Part X of the Companies Act [for
foreign Companies currently doing business in Kenya].
f) Original Tender security of Kshs. 500,000.00 from a bank operating in
Kenya or Insurance Companies approved by PPOA.

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 g) Signed site visit certificate and report; site visits shall be held on the
following days
 Mombasa on the 22nd February 2018 at Kenya Petroleum Refineries
(KPRL), 10:00 am.
 Nairobi on the 23rd February 2018 at Kenpipe Plaza, 10:00 am.

1.4 Prices quoted should be net inclusive of all taxes and delivery costs, must be
expressed in Kenya Shillings and shall remain valid for a period of (150) days from
the closing date of the tender.

1.5 There shall be no correction of arithmetic errors. The completed Price Schedules
shall match KPC requirements. Any amendments to the KPC price schedule shall be
considered non-responsive and result in disqualification of the bid.

1.6 Completed tender documents are to be enclosed in plain sealed envelopes, marked
with the tender number and be deposited in the tender box provided at Kenpipe
Plaza, Sekondi Road, Off Nanyuki Road, Industrial Area or be addressed and posted
to:

The Managing Director,

Kenya Pipeline Company Limited
P. O. Box 73442-00200
Nairobi – Kenya

So as to be received on or before 10.00am on 2nd March 2018

1.7 Tenders will be opened immediately thereafter in the presence of the tenderers
representatives who choose to attend the opening at Kenya Pipeline Company
Limited’s Kenpipe Plaza, Sekondi Road, Off Nanyuki Road, Industrial Area.

1.8 Tender documents are not transferable. Kenya Pipeline Ltd reserves the right to
accept or reject any tender either in whole or in part and is not bound to give reasons
thereof

GENERAL MANAGER SUPPLY CHAIN

FOR: MANAGING DIRECTOR

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SECTION II – INFORMATION TO CONSULTANTS (ITC)

Table of Contents

Page
2.1 Introduction

2.2 Clarification and amendment of RFP document

2.3 Preparation of Technical Proposal

2.4 Financial proposal

2.5 Submission, Receipt and opening of proposals

2.6 Proposal evaluation general

2.7 Evaluation of Technical proposal

2.8 Public opening and Evaluation of financial proposal

2.9 Negotiations

2.10 Award of Contract

2.11 Confidentiality

2.12 Corrupt or fraudulent practices

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 SECTION II: - INFORMATION TO CONSULTANTS (ITC)

2.1 Introduction

2.1.1 The Client named the Appendix to “ITC” will select a firm among those invited to
submit a proposal, in accordance with the method of selection detailed in the
appendix. The method of selection shall be as indicated by the procuring entity in
the Appendix.

2.1.2 The consultants are invited to submit a Technical Proposal and a Financial
Proposal, or a Technical Proposal only, as specified in the Appendix “ITC” for
consulting services required for the assignment named in the said Appendix. A
Technical Proposal only may be submitted in assignments where the Client intends
to apply standard conditions of engagement and scales of fees for professional
services which are regulated as is the case with Building and Civil Engineering
Consulting services. In such a case the highest ranked firm of the technical
proposal shall be invited to negotiate a contract on the basis of scale fees. The
proposal will be the basis for Contract negotiations and ultimately for a signed
Contract with the selected firm.

2.1.3 The consultants must familiarize themselves with local conditions and take them
into account in preparing their proposals. To obtain first hand information on the
assignment and on the local conditions, consultants are encouraged to liase with
the Client regarding any information that they may require before submitting a
proposal and to attend a pre-proposal conference where applicable. Consultants
should contact the officials named in the Appendix “ITC” to arrange for any visit
or to obtain additional information on the pre-proposal conference. Consultants
should ensure that these officials are advised of the visit in adequate time to allow
them to make appropriate arrangements.

2.1.4 The Procuring entity will provide the inputs specified in the Appendix “ITC”,
assist the firm in obtaining licenses and permits needed to carry out the services
and make available relevant project data and reports.

2.1.5 Please note that (i) the costs of preparing the proposal and of negotiating the
Contract, including any visit to the Client are not reimbursable as a direct cost of
the assignment; and (ii) the Client is not bound to accept any of the proposals
submitted.
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2.1.6 The procuring entity’s employees, committee members, board members and their
relative (spouse and children) are not eligible to participate.

2.1.7 The procuring entity shall allow the tenderer to review the tender document free of
charge before purchase.

2.2 Clarification and Amendment of RFP Documents

2.2.1 Consultants may request a clarification of any of the RFP documents only up to
seven [7] days before the proposal submission date. Any request for clarification
must be sent in writing by paper mail, cable, telex, facsimile or electronic mail to
the Client’s address indicated in the Appendix “ITC”. The Client will respond by
cable, telex, facsimile or electronic mail to such requests and will send written
copies of the response (including an explanation of the query but without
identifying the source of inquiry) to all invited consultants who intend to submit
proposals.

2.2.2 At any time before the submission of proposals, the Client may for any reason,
whether at his own initiative or in response to a clarification requested by an
invited firm, amend the RFP. Any amendment shall be issued in writing through
addenda. Addenda shall be sent by mail, cable, telex or facsimile to all invited
consultants and will be binding on them. The Client may at his discretion extend
the deadline for the submission of proposals.

2.3 Site Visit will be held from 22nd February to 23rd February 2018 at 10.00 a.m.
2.3.1 The Tenderer shall be required to visit the sites to acquaint him/herself with the
requirements of each. The Tenderer shall obtain for himself on his own
responsibility, all information that may be necessary for preparing the tender and
entering into a contract. The costs of visiting the site(s) shall be the tenderers own
responsibility.

The site visit dates will be as follows:

 Mombasa on the 22nd February 2018 at Kenya Petroleum Refineries
(KPRL), 10:00 am.
 Nairobi on the 23rd February 2018 at Kenpipe Plaza, 10:00 am.

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2.4 Joint Ventures and Local Participation

2.4.1 Joint Ventures

Tenders submitted by a joint venture of two or more firms as partners shall comply
with the following requirements:

(i) The tender, and in case of a successful tender, the Form of Agreement, shall
be signed so as to be legally binding on all partners.
(ii) One of the partners shall be nominated as being in charge; and this
authorization shall be evidenced by submitting a power of attorney signed by
legally authorized signatories of all the partners.
(iii) The partner in charge shall be authorized to incur liabilities and receive
instructions for and on behalf of any and all partners of the joint venture and
the entire execution of the Contract including payment shall be done
exclusively with the partner in charge.
(iv) All partners of the joint venture shall be liable jointly and severally for the
execution of the Contract in accordance with the Contract terms, and a
relevant statement to this effect shall be included in the authorization
mentioned under (b) above as well as in the Form of Tender and the Form of
Agreement (in case of a successful tender).
(v) A copy of the agreement entered into by the joint venture partners shall be
submitted with the tender.

2.4.2 Local participation

International firms incorporated outside the Republic of Kenya must
demonstrate partnerships with Local firms in a joint venture arrangement for
these services. The minimum shareholding for the local firm in the joint
venture shall be 40% in all respects and the same must clearly be stated in
the Agreement.

(vi) Firms incorporated in Kenya must demonstrate that citizens of Kenya hold a
minimum 51% shareholding to qualify for local firms.

2.5 Preparation of Technical Proposal

2.5.1 The Consultants proposal shall be written in English language

2.5.2 In preparing the Technical Proposal, consultants are expected to examine the
documents constituting this RFP in detail. Material deficiencies in providing the
information requested may result in rejection of a proposal.

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2.5.3 While preparing the Technical Proposal, consultants must give particular attention
to the following:

(i) If a firm considers that it does not have all the expertise for the assignment,
it may obtain a full range of expertise by associating with individual
consultant(s) and/or other firms or entities in a joint venture or sub-
consultancy as appropriate. Consultants shall not associate with the other
consultants invited for this assignment. Any firms associating in
contravention of this requirement shall automatically be disqualified.

(ii) For assignments on a staff-time basis, the estimated number of professional

staff-time is given in the Appendix. The proposal shall however be based on
the number of professional staff-time estimated by the firm.

(iii) It is desirable that the majority of the key professional staff proposed be
permanent employees of the firm or have an extended and stable working
relationship with it.

(iv) Proposed professional staff must as a minimum, have the experience

indicated in Appendix, preferably working under conditions similar to those
prevailing in Kenya.

(v) Alternative professional staff shall not be proposed and only one Curriculum
Vitae (CV) may be submitted for each position.

2.5.4 The Technical Proposal shall provide the following information using the attached
Standard Forms;

(i) A brief description of the firm’s organization and an outline of recent

experience on assignments of a similar nature. For each assignment the
outline should indicate inter alia, the profiles of the staff proposed, duration
of the assignment, contract amount and firm’s involvement.

(ii) Any comments or suggestions on the Terms of Reference, a list of services

and facilities to be provided by the Client.

(iii) A description of the methodology and work plan for performing the
assignment.

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 (iv) The list of the proposed staff team by specialty, the tasks that would be
assigned to each staff team member and their timing.

(v) CVs recently signed by the proposed professional staff and the authorized
representative submitting the proposal. Key information should include
number of years working for the firm/entity and degree of responsibility held
in various assignments during the last ten (10) years.

(vi) Estimates of the total staff input (professional and support staff staff-time)
needed to carry out the assignment supported by bar chart diagrams showing
the time proposed for each professional staff team member.

(vii) A detailed description of the proposed methodology, staffing and monitoring

of training, if Appendix “A” specifies training as a major component of the
assignment.

(viii) Any additional information requested in Appendix “A”.

2.5.5 The Technical Proposal shall not include any financial information.

2.6 Preparation of Financial Proposal

2.6.1 In preparing the Financial Proposal, consultants are expected to take into account
the requirements and conditions outlined in the RFP documents. The Financial
Proposal should follow Standard Forms ( Section D). It lists all costs associated
with the assignment including; (a) remuneration for staff (in the field and at
headquarters), and; (b) reimbursable expenses such as subsistence (per diem,
housing), transportation (international and local, for mobilization and
demobilization), services and equipment (vehicles, office equipment, furniture, and
supplies), office rent, insurance, printing of documents, surveys, and training, if it
is a major component of the assignment. If appropriate these costs should be
broken down by activity.

2.6.2 The Financial Proposal should clearly identify as a separate amount, the local
taxes, duties, fees, levies and other charges imposed under the law on the
consultants, the sub-consultants and their personnel, unless Appendix “A” specifies
otherwise.

2.6.3 Consultants shall express the price of their services in Kenya Shillings.

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2.6.4 Commissions and gratuities, if any, paid or to be paid by consultants and related to
the assignment will be listed in the Financial Proposal submission Form.

2.6.5 The Proposal must remain valid for 60 days after the submission date. During this
period, the consultant is expected to keep available, at his own cost, the
professional staff proposed for the assignment. The Client will make his best
effort to complete negotiations within this period. If the Client wishes to extend
the validity period of the proposals, the consultants shall agree to the extension.

2.7 Submission, Receipt, and Opening of Proposals

2.7.1 The original proposal (Technical Proposal and, if required, Financial Proposal; see
para. 1.2) shall be prepared in indelible ink. It shall contain no interlineation or
overwriting, except as necessary to correct errors made by the firm itself. Any
such corrections must be initialed by the persons or person authorised to sign the
proposals.

2.7.2 For each proposal, the consultants shall prepare the number of copies indicated in
Appendix “A”. Each Technical Proposal and Financial Proposal shall be marked
“ORIGINAL” or “COPY” as appropriate. If there are any discrepancies between
the original and the copies of the proposal, the original shall govern.

2.7.3 The original and all copies of the Technical Proposal shall be placed in a sealed
envelope clearly marked “TECHNICAL PROPOSAL,” and the original and all
copies of the Financial Proposal in a sealed envelope clearly marked
“FINANCIAL PROPOSAL” and warning: “DO NOT OPEN WITH THE
TECHNICAL PROPOSAL”. Both envelopes shall be placed into an outer
envelope and sealed. This outer envelope shall bear the submission address and
other information indicated in the Appendix “ITC” and be clearly marked, “DO
NOT OPEN, EXCEPT IN PRESENCE OF THE OPENING COMMITTEE.”

2.7.4 The completed Technical and Financial Proposals must be delivered at the
submission address on or before the time and date stated in the Appendix “ITC”.
Any proposal received after the closing time for submission of proposals shall be
returned to the respective consultant unopened.

2.7.5 After the deadline for submission of proposals, the Technical Proposal shall be
opened immediately by the opening committee. The Financial Proposal shall
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 remain sealed and deposited with a responsible officer of the client department up
to the time for public opening of financial proposals.

2.8 Proposal Evaluation General

2.8.1 From the time the bids are opened to the time the Contract is awarded, if any
consultant wishes to contact the Client on any matter related to his proposal, he
should do so in writing at the address indicated in the Appendix “ITC”. Any effort
by the firm to influence the Client in the proposal evaluation, proposal comparison
or Contract award decisions shall result in the rejection of the consultant’s
proposal.

2.8.2 Evaluators of Technical Proposals shall have no access to the Financial Proposals
until the technical evaluation is concluded.

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2.9 Evaluation of Technical Proposal

2.9.1 The evaluation committee appointed by the Client shall evaluate the proposals on
the basis of their responsiveness to the Terms of Reference, applying the
evaluation criteria as follows;

Awarded
No. Evaluation Criteria Score
Score
a) Specific experience of the Consultant related to the Max 35
assignment that includes but not limited to:
i. Experience of firm(s) (Individually or cumulatively for
Joint Ventures) during the last 10 years for LPG
Storage facilities of cumulative capacities of 15,000
tons or more out of which the minimum storage
capacity per project should be 1000 tons in the
following areas; (Provide a list and reference letters for
projects done including the names and addresses of
clients and duration of the task as per the attached
form)
a. Engineering Design 15
i. Five (5) or more projects. 10
ii. Three (3) to four (4) projects. 7
iii. One (1) to two (2) projects. 0
iv. Zero (0).

b. Construction supervision 10
i. Five (5) or more projects. 7
ii. Three (3) to four (4) projects. 5
iii. One (1) to two (2) projects. 0
iv. Zero (0).

c. Project management
Experience in contract management and timely
delivery of similar projects. Attach completion
certificates/ discharge certificates for projects
completed. Marks shall be awarded based on
number of years in contract management 10
i. Five (5) or more projects. 3
ii. Three (3) to four (4) projects. 1
iii. One (1) to two (2) projects. 0
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 Awarded
No. Evaluation Criteria Score
Score
iv. Zero (0).
b) Adequacy of the proposed Technical approach to the
work plan and the methodology in responding to the Max
terms of reference 20
i. Preliminary Engineering Design 7
ii. Construction Supervision Management 3
iii. Quality Assurance/ Quality Control 5
iv. HSE Management 3
v. Organization and Staffing Plan 2
c) Qualifications and competence of the key staff for the Max
assignment as in Appendix to ITC and CV. 15 years for 30
Project Manager and 10 years’ relevant experience for
other disciplines: The person must have a degree in the
relevant discipline.
1) Project Manager
a) Degree in Engineering – 1 mark
b) Experience in at least four (4) similar Projects
 Project management – 3 marks
 Construction supervision – 2 marks
2) Mechanical Engineer
a) Degree in Mechanical Engineering – 1 Mark
b) Experience in at least two (2) similar Projects
 Engineering Design – 2 Marks
 Construction – 2 Marks
3) Process Engineer
a) Degree in Mechanical Engineering (or equivalent) –
1 Mark
b) Experience in at least two (2) similar Projects
 Engineering Design – 2 Mark
 Construction – 2 Mark
4) Civil Engineer
a) Degree in Civil Engineering – 1 Mark
b) Experience in at least two (2) similar Projects
 Engineering Design – 1 Mark
 Construction – 1 Mark
5) Electrical Engineer
a) Degree in Electrical Engineering – 1 Mark
b) Experience in at least two (2) similar Projects

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 Awarded
No. Evaluation Criteria Score
Score
 Engineering Design – 1 Mark
 Construction – 1 Mark
6) Instrumentation & Controls Engineer
a) Degree in Instrumentation/Telecom/Controls
Engineering (or equivalent) – 1 Mark
b) Experience in at least two (2) similar Projects
 Engineering Design – 1 Mark
 Construction – 1 Mark
7) HSE Engineer
a) Degree in Engineering – 1 Mark
b) Experience in at least two (2) similar Projects – 1
Mark
8) QA/QC Engineer (NDT Inspector)
a) Degree in Engineering – 1 Mark
b) Experience in at least two (3) similar Projects – 2
d) Firms capability Max
Average Annual Turnover (AAT) of the firm (Total of 15
the firms in case of JV and consortiums) in million
USD for the last five consecutive fiscal years.
Minimum AAT should be more than 10 million USD
individually OR cumulative in case of consortium.
i. >11 million
10
ii. 8 - 11 million
7
iii. 5 – 7 million
5
iv. < 5 million
2
Resources individually OR cumulative in case of
consortium
i. Permanent & contract Employees more than 100 Nos 5
ii. Permanent & contract Employees between 50 and 4
100 Nos.
iii. Permanent & contract Employees less than 50 Nos. 3
Total Points 100

o Minimum Technical Score required to pass: 80 points

o A consultant shall qualify to proceed to financial evaluation stage

upon attainment of 80% or more marks.

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 o An alternative formula for determining the financial scores is: None.

o The weights given to the Technical and Financial Proposals are: -

o T = 0.8 and P= 0.2 respectively.

2.9.2 Each responsive proposal will be given a technical score (St). A proposal shall be
rejected at this stage if it does not respond to important aspects of the Terms of
Reference or if it fails to achieve the minimum technical score indicated in the
Appendix “ITC”.

2.10 Public Opening and Evaluation of Financial Proposal

2.8.1 After Technical Proposal evaluation, the Client shall notify those consultants
whose proposals did not meet the minimum qualifying mark or were considered
non-responsive to the RFP and Terms of Reference, indicating that their Financial
Proposals will be returned after completing the selection process. The Client shall
simultaneously notify the consultants who have secured the minimum qualifying
mark, indicating the date and time set for opening the Financial Proposals and
stating that the opening ceremony is open to those consultants who choose to
attend. The opening date shall not be sooner than seven (7) days after the
notification date. The notification may be sent by registered letter, cable, telex,
facsimile or electronic mail.

2.8.2 The Financial Proposals shall be opened publicly in the presence of the
consultants’ representatives who choose to attend. The name of the consultant, the
technical. Scores and the proposed prices shall be read aloud and recorded when
the Financial Proposals are opened. The Client shall prepare minutes of the public
opening.

2.8.3 The evaluation committee will determine whether the financial proposals are
complete The cost of any unpriced items shall be assumed to be included in other
costs in the proposal. In all cases, the total price of the Financial Proposal as
submitted shall prevail.

2.8.4 While comparing proposal prices between local and foreign firms participating in a
selection process in financial evaluation of Proposals, firms incorporated in Kenya
where indigenous Kenyans own 51% or more of the share capital shall be allowed
a 20% preferential bias in proposal prices. However, there shall be no such

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 preference in the technical evaluation of the tenders. Proof of local incorporation
and citizenship shall be required before the provisions of this sub-clause are
applied. Details of such proof shall be attached by the Consultant in the financial
proposal.

2.8.5 The formulae for determining the Financial Score (Sf) shall, unless an alternative
formulae is indicated in the Appendix “ITC”, be as follows:-
Sf = 100 X FM/F where Sf is the financial score; Fm is the lowest priced financial
proposal and F is the price of the proposal under consideration. Proposals will be
ranked according to their combined technical (St) and financial (Sf) scores using
the weights (T=the weight given to the Technical Proposal: P = the weight given
to the Financial Proposal; T + p = I) indicated in the Appendix. The combined
technical and financial score, S, is calculated as follows:- S = St x T % + Sf x P %.
The firm achieving the highest combined technical and financial score will be
invited for negotiations.
2.8.6 The tender evaluation committee shall evaluate the tender within 30 days of from
the date of opening the tender.

2.8.7 Contract price variations shall not be allowed for contracts not exceeding one year
(12 months) and such variation shall not be considered in the first 12 months from
the date of signing the contract

2.8.8 Where contract price variation is allowed, the variation shall not exceed15% of the
original contract price

2.8.9 Price variation requests shall be processed by the procuring entity within 30 days
of receiving the request.

2.9 Negotiations

2.9.1 Negotiations will be held at the same address as “address to send information to
the Client” indicated in the Appendix “ITC”. The aim is to reach agreement on all
points and sign a contract.

2.9.2 Negotiations will include a discussion of the Technical Proposal, the proposed
methodology (work plan), staffing and any suggestions made by the firm to
improve the Terms of Reference. The Client and firm will then work out final
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 Terms of Reference, staffing and bar charts indicating activities, staff periods in
the field and in the head office, staff-months, logistics and reporting. The agreed
work plan and final Terms of Reference will then be incorporated in the
“Description of Services” and form part of the Contract. Special attention will be
paid to getting the most the firm can offer within the available budget and to
clearly defining the inputs required from the Client to ensure satisfactory
implementation of the assignment.

2.9.3 Unless there are exceptional reasons, the financial negotiations will not involve the
remuneration rates for staff (no breakdown of fees).

2.9.4 Having selected the firm on the basis of, among other things, an evaluation of
proposed key professional staff, the Client expects to negotiate a contract on the
basis of the experts named in the proposal. Before contract negotiations, the Client
will require assurances that the experts will be actually available. The Client will
not consider substitutions during contract negotiations unless both parties agree
that undue delay in the selection process makes such substitution unavoidable or
that such changes are critical to meet the objectives of the assignment. If this is not
the case and if it is established that key staff were offered in the proposal without
confirming their availability, the firm may be disqualified.

2.9.5 The negotiations will conclude with a review of the draft form of the Contract. To
complete negotiations the Client and the selected firm will initial the agreed
Contract. If negotiations fail, the Client will invite the firm whose proposal
received the second highest score to negotiate a contract.

2.9.6 The procuring entity shall appoint a team for the purpose of the negotiations.

2.10 Award of Contract

2.10.1The Contract will be awarded following negotiations. After negotiations are

completed, the Client will promptly notify other consultants on the shortlist that
they were unsuccessful and return the Financial Proposals of those consultants
who did not pass the technical evaluation.

2.10.2The selected firm is expected to commence the assignment on the date and at
the location specified in Appendix “A”.

2.10.3 The parties to the contract shall have it signed within 30 days from the date of
notification of contract award unless there is an administrative review request.
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2.10.4 The procuring entity may at any time terminate procurement proceedings before
contract award and shall not be liable to any person for the termination.

2.10.5 The procuring entity shall give prompt notice of the termination to the tenderers
and on request give its reasons for termination within 14 days of receiving the
request from any tenderer.

2.10.6 To qualify for contract awards, the tenderer shall have the following:
(a) Necessary qualifications, capability experience, services, equipment and
facilities to provide what is being procured.
(b) Legal capacity to enter into a contract for procurement
(c) Shall not be insolvent, in receivership, bankrupt or in the process of being
wound up and is not the subject of legal proceedings relating to the foregoing.
(d) Shall not be debarred from participating in public procurement.

2.11 Confidentiality

2.11.1Information relating to evaluation of proposals and recommendations concerning

awards shall not be disclosed to the consultants who submitted the proposals or to
other persons not officially concerned with the process, until the winning firm has
been notified that it has been awarded the Contract.

2.12 Corrupt or fraudulent practices

2.12.1The procuring entity requires that the consultants observe the highest standards of
ethics during the selection and award of the consultancy contract and also during
the performance of the assignment. The tenderer shall sign a declaration that he has
not and will not be involved in corrupt or fraudulent practices.

2.12.2 The procuring entity will reject a proposal for award if it determines that the
consultant recommended for award has engaged in corrupt or fraudulent practices
in competing for the contract in question.

2.12.3 Further a consultant who is found to have indulged in corrupt or fraudulent

practices risks being debarred from participating in public procurement in Kenya.

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 Appendix to Information to Consultants

The following information for procurement of consultancy services and selection of

consultants shall complement or amend the provisions of the information to
consultants, wherever there is a conflict between the provisions of the information
and to consultants and the provisions of the appendix, the provisions of the
appendix herein shall prevail over those of the information to consultants.

Clause Reference

2.1 The name of the Client is: Kenya Pipeline Company Limited

2.1.1The method of selection is: Quality and Cost Based

2.1.2 Technical and Financial Proposals are requested: Yes

The name, objectives, and description of the assignment are: as stated in the tender
document

2.1.3 A pre-proposal conference will be held: Yes

 22nd February 2018 at Kenya Petroleum Refineries (KPRL), 10:00 am.

 Nairobi on the 23rd February 2018 at Kenpipe Plaza, 10:00 am.

The name(s), address(es) and telephone numbers of the Client’s official(s)

are:__________________________________________________
The Managing Director,
Kenya Pipeline Company Limited
P. O. Box 73442-00200
Nairobi – Kenya

2.1.4 The Client will provide the following inputs: ___________________

__________________________________________________________________
__________________________(see tender document )
________________________________

2.1.5 (ii) The estimated number of professional staff months

required for the assignment is;__________________________
_______(see tender document )

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 (iv) The minimum required experience of proposed professional staff is:[Insert
title, number of years of professional experience, specific expertise]
__________________________________________________________________
_______(see tender document )
____________________________________________

2.1.6 (vii) Training is a specific component of this assignment:

Yes____ No _______[_______(see tender document )
)

(viii) Additional information in the Technical Proposal includes:

________________________(see tender document )
_______________________

2.1.7 Taxes: [Specify firm’s liability: nature, sources of information]:___

_______________________________________________________________

2.5.2 Consultants must submit an original and two (2 ) additional Two (2 ) copies of
each proposal: yes

2.5.3 The proposal submission address is below. Information on the outer envelope
should also include: __

The Managing Director,

Kenya Pipeline Company Limited
P. O. Box 73442-00200
Nairobi – Kenya

2.5.4 Proposals must be submitted no later than the following date and time:___10:00
am 2nd March 2018

2.6.1 The address to send information to the Client is

[email protected]

2.6.3 The minimum technical score required to pass

Points 80% or more

Page 21 of 95
2.7.1Alternative formulae for determining the financial scores is the following:

The weights given to the Technical and Financial Proposals are:

T=0.80
P= 0.20

2.9.2 The assignment is expected to commence on__________ [Insert date] at [Insert

location] to be included in contract document

Page 22 of 95
 SECTION III: - TECHNICAL PROPOSAL

Notes on the preparation of the Technical Proposals

3.1 In preparing the technical proposals the consultant is expected to examine all terms
and information included in the RFP. Failure to provide all requested information
shall be at the consultants own risk and may result in rejection of the consultant’s
proposal.

3.2 The technical proposal shall provide all required information and any necessary
additional information and shall be prepared using the standard forms provided in
this Section.

3.3 The Technical proposal shall not include any financial information unless it is
allowed in the Appendix to information to the consultants or the Special
Conditions of contract.

Page 23 of 95
 SECTION III - TECHNICAL PROPOSAL

Table of Contents

Page
1. Technical proposal submission form

2. Firms references

3. Comments and suggestions of consultants on the

Terms of reference and on data, services and
facilities to be provided by the procuring entity

4. Description of the methodology and work plan

for performing the assignment

5. Team composition and Task assignments

6. Format of curriculum vitae (CV) for proposed

Professional staff

7. Time schedule for professional personnel

8. Activity (work schedule)

Page 24 of 95
 1. TECHNICAL PROPOSAL SUBMISSION FORM

[_______________ Date]

To:______________________[Name and address of Client)

Ladies/Gentlemen:

We, the undersigned, offer to provide the consulting services for __________________
_______________________________[Title of consulting services] in accordance with
your Request for Proposal dated ______________________[Date] and our Proposal. We
are hereby submitting our Proposal, which includes this Technical Proposal, [and a
Financial Proposal sealed under a separate envelope-where applicable].

We understand you are not bound to accept any Proposal that you receive.

We remain,

Yours sincerely,

_______________________________[Authorized Signature]:

________________________________[Name and Title of Signatory]

:
_________________________________[Name of Firm]
:
_________________________________[Address:]

Page 25 of 95
 2. FIRM’S REFERENCES

Relevant Services Carried Out in the Last Five Years

That Best Illustrate Qualifications

Using the format below, provide information on each assignment for which your firm either
individually, as a corporate entity or in association, was legally contracted.

Assignment Name: Country

Location within Country: Professional Staff provided by Your

Firm/Entity(profiles):
Name of Client: Clients contact person for the assignment.

Address:
No of Staff-Months; Duration of
Assignment:
Start Date (Month/Year): Completion Date Approx. Value of Services (Kshs)
(Month/Year):

Name of Associated Consultants. If any:

No of Months of Professional
Staff provided by Associated Consultants:
Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved and Functions
Performed:

Narrative Description of project:

Description of Actual Services Provided by Your Staff:

Firm’s Name: ___________________________________

Name and title of signatory; ________________________

(May be amended as necessary)

Page 26 of 95
3. COMMENTS AND SUGGESTIONS OF CONSULTANTS ON THE TERMS
OF REFERENCE AND ON DATA, SERVICES AND FACILITIES TO BE
PROVIDED BY THE CLIENT.

On the Terms of Reference:

1.

2.

3.

4.

5.

On the data, services and facilities to be provided by the Client:

1.

2.

3.

4.

5.

Page 27 of 95
14. DESCRIPTION OF THE METHODOLOGY AND WORK PLAN FOR
PERFORMING THE ASSIGNMENT

Page 28 of 95
5. TEAM COMPOSITION AND TASK ASSIGNMENTS

1. Technical/Managerial Staff

Name Position Task

2. Support Staff

Name Position Task

Page 29 of 95
 6. FORMAT OF CURRICULUM VITAE (CV) FOR PROPOSED
PROFESSIONAL STAFF

Proposed Position:
_____________________________________________________________

Name of Firm:
_________________________________________________________________

Name of Staff:
__________________________________________________________________

Profession:
_____________________________________________________________________

Date of Birth:
__________________________________________________________________

Years with Firm: ___________________________ Nationality:

______________________

Membership in Professional Societies:

__________________________________________

Detailed Tasks Assigned:

_______________________________________________________

Key Qualifications:

[Give an outline of staff member’s experience and training most pertinent to tasks on
assignment. Describe degree of responsibility held by staff member on relevant previous
assignments and give dates and locations].

Education:

Page 30 of 95
[Summarize college/university and other specialized education of staff member, giving
names of schools, dates attended and degree[s] obtained.]

Employment Record:

[Starting with present position, list in reverse order every employment held. List all
positions held by staff member since graduation, giving dates, names of employing
organizations, titles of positions held, and locations of assignments.]

Certification:

I, the undersigned, certify that these data correctly describe me, my qualifications, and
my experience.

_________________________________________________________ Date:
________________
[Signature of staff member]
___________________________________________________________________
Date; ______________
[Signature of authorised representative of the firm]

Full name of staff member:

_____________________________________________________

Full name of authorized representative:

_________________________________________

Page 31 of 95
7. TIME SCHEDULE FOR PROFESSIONAL PERSONNEL

Months (in the Form of a Bar Chart)

Name Position Reports Due/ Number of
Activities 1 2 3 4 5 6 7 8 9 1 11 12 months
0

Reports Due: _________

Activities Duration: _________

Signature: ________________________
(Authorized representative)

Full Name: ________________________

Title: ______________________________

Address: ___________________________

Page 32 of 95
 8. ACTIVITY (WORK) SCHEDULE

(a). Field Investigation and Study Items

[1st,2nd,etc, are months from the start of assignment)

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

Activity (Work)

(b). Completion and Submission of Reports

Reports Date
i. Inception Report 30 days from commencement date
Every 4th day of the following month for
ii. Progress Reports during design stage
progress reports.
iii. Draft Report on Preliminary Design 60 days from commencement date
iv. Final Report on Preliminary Design 90 days from commencement date
v. Draft Tender documents including
90 days from commencement date
functional specifications
105 days from commencement date and
vi. Final Tender Documents
inclusive of 14 days for Client Review
vii. Monthly progress Reports During Every 4th day of the following month for
Construction Period progress reports.
viii. Project Completion Report 28 days after end of defects liability period
ix. Asset Classification Report 28 days after end of defects liability period

Page 33 of 95
 SECTION IV: - FINANCIAL PROPOSAL

Notes on preparation of Financial Proposal

4.1 The Financial proposal prepared by the consultant should list the costs associated
with the assignment. These costs normally cover remuneration for staff,
subsistence, transportation, services and equipment, printing of documents, surveys
etc as may be applicable. The costs should be broken done to be clearly
understood by the procuring entity.
4.2 The financial proposal shall be in Kenya Shillings or any other currency allowed in
the request for proposal and shall take into account the tax liability and cost of
insurances specified in the request for proposal.
4.3 The financial proposal should be prepared using the Standard forms provided in
this part

Page 34 of 95
 SECTION IV - FINANCIAL PROPOSAL STANDARD FORMS

Table of Contents

Page
1. Financial proposal submission Form

2. Summary of costs

3. Breakdown of price/per activity

4. Breakdown of remuneration per activity

5. Reimbursables per activity

6. Miscellaneous expenses

Page 35 of 95
 1. FINANCIAL PROPOSAL SUBMISSION FORM

________________[ Date]

To: ______________________________________
______________________________________
______________________________________
[Name and address of Client]

Ladies/Gentlemen:

We, the undersigned, offer to provide the consulting services for (____________) [Title
of consulting services] in accordance with your Request for Proposal dated
(__________________) [Date] and our Proposal. Our attached Financial Proposal is for
the sum of
(_________________________________________________________________)
[Amount in words and figures] inclusive of all the taxes.

We remain,

Yours sincerely,

_____________________________[Authorized Signature]
:
_____________________ [Name and Title of Signatory]:

_______________________ [Name of Firm]

______________________ [Address]

Page 36 of 95
 2. SUMMARY OF COSTS

Costs Currency(ies) Amount(s)

1 (i). Activity 1: Preliminary Engineering
Design

(ii). Activity 2: Tender Documentation

(iii). Activity 3: Contract documentation

(iv). Activity 4: Construction Supervision

up to the Discharge of the
Contractor

(v). Activity 5: Training

Subtotal (i + ii +iii +iv + v)

2 Taxes
(i). VAT
(ii). Other taxes (Specify)
Subtotal taxes (i + ii )
3 Total Amount of Financial Proposal (1 + 2)

Page 37 of 95
 3. BREAKDOWN OF PRICE PER ACTIVITY

Activity NO.: Description:_________________________

_______________________

Price Component Amount(s)

Remuneration

Reimbursables

Miscellaneous Expenses

Subtotal _______________________________

Page 38 of 95
 4. BREAKDOWN OF REMUNERATION PER ACTIVITY

Activity No. ______________________________ Name:_______________________

Names Input Currency(ies) Remuneration Amount

Position (Staff Rate Φ
months)

Regular staff
1.
2.
3.
4.
5.
6.

Consultants
1.
2.
3.

Grand Total

Φ In addition to the staff salary, the rate should include where applicable any overtime,
local & overseas allowances, accommodation, paid vacation, sick leave, statutory
deductions and firms overheads & profits.
Page 39 of 95
 5. REIMBURSABLES PER ACTIVITY

Activity No: ________________________________

Name:______________________

No. Description Unit Quantity Currency(ies) Unit Total

Price Amount
1. Air travel
(i). Local LS

(ii). International LS

2 Road travel LS

3. Rail travel LS

4. Subsistence LS
Allowance

5. Offices cost¥ LS

6. Training for KPC LS

staff

Grand Total

Consultant to make own arrangement to source, operate and maintain vehicles

necessary for provision of the required consultancy services

¥Offices cost includes office consumables, clerical staff, messenger and driver(s).
Furnished site offices will be provided by the Client under the Contractor’s Contract
only during construction period; at Mombasa and Nairobi.

Page 40 of 95
 6. MISCELLANEOUS EXPENSES

Activity No. ______________________________ Activity Name:

_______________________

No. Description Unit Quantity Currency Unit Total

Price Amount
1. Communication costs LS
(telephone, telegram, telex)

2. Drafting, reproduction of LS
reports

3. Equipment: computers etc. LS

4. Software LS

5. Following cost(s), if any,

which the Consultant
considers necessary but
has not been included
elsewhere:
5.1. LS
5.2 LS
5.3. LS
5.4 LS
5.5 LS

Grand Total

Page 41 of 95
 SECTION V: - TERMS OF REFERENCE

5.1 Terms of Reference are the initial statement to the consultant of the services to be
performed and should therefore be clear and precise and should contain the
following sections:

1. BACKGROUND INFORMATION .........................................................43

2. OBJECTIVES OF THE ASSIGNMENT ................................................43

3. SCOPE OF SERVICES ......................................................................44

4. TRAINING .........................................................................................47

5. REPORTING REQUIREMENTS AND TIMELINES ...............................48

6. DATA SERVICES, PERSONNEL AND FACILITIES TO BE PROVIDED BY THE

CLIENT .............................................................................................50

7. TERMS OF PAYMENT .......................................................................50

5.2 This Section should be prepared very carefully by the procuring entity to ensure
that the consultancy assignment is well understood by the consultants.

Page 42 of 95
5.3 TERMS OF REFERENCE FOR CONSULTANCY SERVICES FOR
PRELIMINARY ENGINEERING DESIGN, TENDER DOCUMENTATION AND
CONSTRUCTION SUPERVISION FOR THE PROPOSED LIQUEFIED
PETROLEUM GAS FACILITIES DEVELOPMENT IN MOMBASA AND
NAIROBI.

5.3.1 BACKGROUND INFORMATION

In Kenya, LPG is increasingly used as a source of fuel. Indeed, LPG usage is being
encouraged by the government to replace non-sustainable sources of biomass,
particularly in rural areas. 87% of Kenyans use solid fuels as their primary fuel
source for cooking while 5% use kerosene as a primary fuel. The heavy reliance on
inefficient traditional biomass sources exacerbates forest degradation and climate
change, and has detrimental impacts on health and poverty in Kenya.

To counter the above, the Kenya Pipeline Company intends to construct Large LPG
storage facilities in Nairobi and Mombasa to facilitate importation of large volumes of
LPG and thereby reduce the cost of LPG in the country and the region.

5.3.2 OBJECTIVES OF THE ASSIGNMENT

The objective of this assignment is to:

a) Design a 25,000 tons capacity LPG depot in Mombasa, with a provision for
expanding to 50,000 tons in future. The design is to cover the provision for LPG
marine offloading, pipeline transportation, storage, and truck and rail loading
facilities.

b) Design an LPG import pipeline between Kipevu and Changamwe.

c) Design a 10,000 tons LPG depot in Nairobi. The design is to cover the provision
for LPG truck and rail offloading/loading, storage, and bottling facilities.

d) Provide project cost estimates.

e) Generate tender documentation for procuring an EPC contractor for the

Mombasa and Nairobi LPG facilities.

f) Review designs done by the EPC contractor.

g) Provide project management services during construction of the Mombasa and

Nairobi LPG facilities.

Page 43 of 95
5.4 SCOPE OF SERVICES

5.4.1 Preamble

The scope of consultancy services to be provided will comprise of the following:

a) The scope of work envisaged is the preparation of a design package and cost
estimate for a 50,000 tons LPG Offloading, Transportation, Storage and Loading
Facilities at Mombasa and 10,000 tons LPG Offloading, Storage, Loading Facilities
and Bottling plant in NAIROBI.

5.4.2 The consultant is expected to:

b) Develop engineering design packages that can be used to bid a lump sum for
Engineering, Procurement and Construction (EPC) scope.
c) Develop the design package with reference to “Basis of Design (BOD)” document,
“Study on Demand of LPG in the East African Region and Preliminary Design of
the required infrastructure within Kenya to meet the Demand – 2005” document
and “Feasibility study for Inland Bulk Liquefied Petroleum Gas Storage and
Bottling Facilities – 2013” document.
d) Carry out Hazard and Operability (HAZOP) Study for the project.
e) Prepare a ‘Project Risk Matrix’ with possible mitigation measures.
f) Offer supervisory services to the EPC contractor during execution of the projects.
g) Prepare cost estimates and provide sufficient level of detail such that EPC
contractor can be mobilized for the execution of the project.
h) Address Environmental and regulatory aspects through risk evaluations and
environmental screenings for health, safety and environmental (HSE) aspects, and
identification of legislative and environmental requirements and devise
environmental programmes comprising all necessary steps for obtaining approvals
and permits.

5.4.3 Specific Tasks

a) Data collection
The Consultant shall collect any necessary additional data and information for
undertaking the services outlined in the terms of reference.

Page 44 of 95
 The Consultant shall undertake topographical survey, soil investigations,
inspection of existing facilities and liaison with the relevant institutions to
obtain sufficient details for the assignment.

b) Preliminary Engineering Design

The design must adhere to all the relevant international and local standards,
and applicable local legislations. Based on the information collected above, the
Consultant shall undertake the following:
i. Preliminary engineering design for the proposed LPG facilities and import
pipeline.

ii. Hydraulic design of the import pipeline profile taking into consideration
the operational philosophy and minimum/maximum allowable system
pressures to meet the projected unconstrained demand for the next ten
(10) years.

iii. Carry out a technical and financial evaluation to determine the optimal
tankage size for Mombasa and Nairobi Depots considering the limitations
at the Mombasa harbor and rail/road constraints.

iv. Flexibility for future expansion of the system.

v. Preliminary cost estimates for the entire facility based on the above
design using the current market rates.

c) Project Risk Matrix

The Consultant shall prepare a ‘Project Risk Matrix’ with possible mitigation
measures for discussion and adoption by the Client before approval of the
detailed engineering design.

d) Preparation of Tender Documents

The Consultant will prepare tender documents based on the approved design
package, international standards/specifications and conditions of contract for
procurement of EPC contractor for the LPG depots and LPG import pipeline.
The tender documents shall include the following components:

i. Volume 1 a) Invitation and instruction to tenderers

b) Form of tender and appendix to tender

c) Conditions of contract (Parts 1 and 2)

Page 45 of 95
 d) Contractor’s general obligations

e) Form of agreement, form of tender security,

form of performance and advance
guarantees

f) Schedules

ii. Volume 2 a) Design Basis for EPC.

b) Specifications.

c) Plant Layout and Model.

d) Equipment Datasheets.

e) Safety, Control and Operational

Philosophies.

f) Gas Detection System.

g) Fire Detection, Prevention and Suppression

Systems.

h) Hazards Analysis and Operability (HAZOP)

Study Report.

i) Project Risk Analysis.

j) Photographic and video capture facilities.

iii. Volume 3 a) Tender drawings.

b) Bill of Quantities.
The specifications should cater for quality of materials/equipment to be used
and workmanship. This should be in accordance with local and international
standards.

e) Tender Evaluation
During the tendering process, the Consultant will prepare responses to all
requests for clarifications from the bidders for distribution by the Client.
Subsequently the submitted bids will be evaluated by the Client in accordance
with The Public Procurement and Disposal Act 2015

Page 46 of 95
 f) Construction Supervision
The Consultant will supervise the construction of both the Nairobi and
Mombasa LPG depots and the LPG import pipeline between Kipevu and
Changamwe and all related works up to completion and attend to issues
arising during the defects liability period as below: -

(i) Contract management and administration.

(ii)Project progress meetings.
(iii)Monthly progress reporting.
(iv) Construction inspection.
(v) Compliance with permit conditions and mitigation measures.
(vi) Coordination of testing services, inspections and project quality
assurance reviews.
(vii) Project appraisal reports.
(viii) Valuation and processing of progress payments.
(ix) Progress schedule reporting and documentation.
(x) Claims analysis.
(xi) Photographic and video documentation.
(xii) Approval of Safety, Control and Operational Philosophies.
(xiii) Approval of Testing and Commissioning procedures.
(xiv) Supervision during Testing and Commissioning of the works.
(xv) Approval of AS-Built Drawings.
(xvi) Project close-out and other construction management-related tasks
not specifically identified above.

g) Cost estimates
The Consultant shall provide a cost estimate breakdown for the entire project
based on the above design using the current market rates.

5.5 TRAINING

To enhance staff skills for optimal and efficient operation and maintenance of the
system, the Consultant shall undertake, oversee and coordinate training of KPC
staff for the purposes of capacity building, technology and knowledge transfer in
the following key areas:-

(i) LPG depots design

(ii) QA/QC management
(iii) HSE management
(iv) Project management

KPC shall second staff to the project who shall receive certification training on the
above. The Consultant shall facilitate and allow KPC staff to participate and attend
to facility designs in their offices, equipment production, factory tests, trainings
offered by equipment manufacturers, construction and commissioning. Training

Page 47 of 95
 shall subsequently be provided to both operations and maintenance staff who will
be operating and maintaining the system.

The Consultant shall provide a comprehensive training program with content

details, for all the necessary staff and the cost shall also be included in the bid.
Implementation of this training shall be carried during the project in line with the
above proposed training.

5.6 REPORTING REQUIREMENTS AND TIMELINES

All the reports/documents outlined below will be prepared in the English

language.

a) Inception Report
The inception report shall be submitted to the Client, one month after
commencement date, in three (3) hardcopies and in soft copy (CD Rom or Flash
disc). The report shall contain the work programme detailing all steps of the
execution of the assignment. The report should also contain summary of the
findings from the review of available documents and the site inspection.

b) Monthly Progress Reports Before Engagement of A Contractor

Monthly progress reports shall be submitted to the Client in three (3)
hardcopies and in soft copy (CD Rom or Flash disc) from the second month
after commencement date up to the submission of final contract document.
The report will outline the progress, difficulties/challenges encountered and
proposed solutions to mitigate the same.

c) Preliminary Design Report

Preliminary design report shall be submitted to the Client three (3) months
after commencement date in four (4) hardcopies and in soft copy (CD ROM or
Flash disc). This report shall contain but not limited to write-up, design
criteria, design calculations, drawings to acceptable scale, preliminary cost
estimates and financial analysis. It is expected that the client shall discuss and
review the same within one month after submission

d) Draft Tender Documents

Draft tender documents shall be submitted to the Client three (3) months after
commencement date in five (5) hardcopies and in soft copy (CD ROM or Flash
disc). The tender documents should contain the details specified in this scope
of works.

e) Final Tender Documents

Final tender documents shall be submitted to the Client 105 days after
commencement date in ten (10) hardcopies and in soft copy (CD ROM or Flash
disc) after incorporating the Client’s comments on the draft tender documents.

Page 48 of 95
f) Monthly Progress Report During Implementation
Monthly progress reports shall be submitted to the Client in three (3)
hardcopies and in soft copy (CD Rom or Flash disc) after commencement of
construction up to submission of final completion report. The report will
outline the progress achieved during the month and the overall progress,
delays, cash flow. The report will be submitted by the 4thday of each following
month.

g) Project Appraisal Report

Project appraisal reports shall be submitted to the Client in every four (4)
months during the project implementation period in three (3) hardcopies and in
soft copy (CD ROM or Flash disc). The report should detail the projected
project cost to completion based on the information known at the time of
submission.

h) Commissioning Report for Mombasa Depot

Project commissioning report prepared by the Consultant shall be submitted
within 3 weeks after project take over in six hardcopies and in soft copy (CD
ROM or Flash disc). The report should detail all the test results for all the
installed equipment, system testing results appended to a main report.

i) Commissioning Report for Nairobi Depot

Project commissioning report prepared by the Consultant shall be submitted
within 3 weeks after project take over in six hardcopies and in soft copy (CD
ROM or Flash disc). The report should detail all the test results for all the
installed equipment, system testing results appended to a main report.

j) Project Completion Reports for Mombasa and Nairobi Depots

A draft project completion report shall be submitted to the Client in five (5)
hardcopies and in soft copy (CD Rom or Flash disc) twenty eight (28) days after
the end of defects liability period.

The final project completion report shall be submitted fifty six (56) days after
end of defects liability period upon incorporation of the Clients comments.

The project completion report should include the following as minimum:-

(i) An executive summary final project report on the project
summarizing management issues, costs and any other information
the Consultant considers necessary for Client’s record.
(ii) All the as-built drawings for the facility including and not limited to
way leave, pipeline, elevation, pump station, crossings, and
installation tie in drawings. (The drawings shall be as approved by the
Client).
(iii) QA reports on pipe manufacture and construction, mill test reports,
locations and relevant documentation.
(iv) Equipment and inventory of the installed facility.
Page 49 of 95
 k) Asset Classification Report
A draft asset classification report shall be submitted to the Client in five (5)
hardcopies and in soft copy (CD Rom or Flash disc) twenty (28) days after the
project take-over.

The final asset classification report will be submitted fifty six (56) days after
the end of defects liability period upon incorporation of the Clients comments.

The asset classification report will include and not limited to the following:
i. Asset/ tag no. Manufacturing date, manufacturer, Country, year of
manufacturer, cost.

ii. Total project cost.

5.7 DATA SERVICES, PERSONNEL AND FACILITIES TO BE PROVIDED BY THE

CLIENT

The Client will provide the information, facilities and assistance specified in
this request for proposal.

5.8 TERMS OF PAYMENT

The terms and conditions of payment specified in the conditions of contract

shall apply.

Page 50 of 95
 SECTION VI:

STANDARD FORMS OF CONTRACT

a. ANNEX I – LARGE ASSIGNMENTS (LUMP-SUM PAYMENTS)

b. ANNEX II – LARGE AND SMALL ASSIGNMENTS (TIME -BASED

PAYMENTS)

c. ANNEX III – SMALL ASSIGNMENTS (LUMP-SUM

PAYMENTS)

NOTES

1. LARGE ASSIGNMENT_____Exceeding Ksh 5,000,000

2. SMALL ASSIGNMENT _____Not exceeding Ksh. 5,000,000

3. TIME BASED PAYMENT ___Time based fixed fee Exact duration of

contract not fixed

4. LUMP-SUM PAYMENT _____Stated fixed contract sum.

Page 51 of 95
ANNEX I
REPUBLIC OF KENYA

STANDARD FORM OF CONTRACT

FOR

CONSULTING SERVICES

Large Assignments
(Lump- Sum payment)

CONTENTS
Special notes……………………………………………………………………………
iii

Contract for Consultant’s Services…………………………………………………

iv

I Form of Contract………………………………………………………………..
v-vi

II General Conditions of Contract……………………………………………… vii

1. General Provisions…………………………………………………………
vii-viii
1.1 Definitions…………………………………………………….……
viii
1.2 Law Governing the Contract………………………………….. viii
1.3 Language…………………………………………………………..
viii

Page 52 of 95
 1.4 Notices………………………………………………………………
viii
1.5 Location…………………………………………………………….
viii
1.6 Authorized Representatives…………………………………… viii
1.7 Taxes and Duties…………………………………………………
ix

2. Commencement, Completion, Modification and

Termination of Contract…………………………………………………
ix
2.1 Effectiveness of Contract……………………………………….. ix
2.2 Commencement of Services……………………………………..
ix
2.3 Expiration of Contract…………………………………………….
ix
2.4 Modification………………………………………………………….
ix
2.5 Force Majeure……………………………………………………….
ix
2.5.1 Definition……………………………………………………..
ix
2.5.2 No Breach of Contract……………………………………..
ix
2.5.3 Extension of Time…………………………………………..
x
2.5.4 Payments……………………………………………………..
x
2.6 Termination………………………………………………………….
x
2.6.1 By the Client…………………………………………………
x
2.6.2 By the Consultant…………………………………………
xi
2.6.3 Payment upon Termination……………………………… xi

3. Obligations of the Consultant…………………………………………. xii

3.1 General………………………………………………………………..
xii
3.2 Conflict of Interests…………………………………………………
xiii
Page 53 of 95
 3.2.1 Consultant Not to Benefit from Commissions,
Discounts, etc……………………………………….
xii-xiii
3.2.2 Consultant and Affiliates Not to Be
Otherwise Interested in Project…………………. xiii
3.2.3 Prohibition of Conflicting Activities…………………
xiii

3.3 Confidentiality……………………………………………….
xiii

Page 54 of 95
 (i)

3.4 Insurance to be Taken Out by the Consultant… xiv

3.5 Consultant’s Actions Requiring Client’s Prior
Approval……………………………………………… xv
3.6 Reporting Obligations……………………………… xv
3.7 Documents Prepared by the Consultant to
Be the Property of the Client……………………… xv

4 Consultant’s Personnel…………………………………………… xv
4.1 Description of Personnel…………………………… xv
4.2 Removal and/or Replacement of Personnel…… xv

5 Obligations of the Client…………………………………………… xvi

5.1 Assistance and Exemptions………………………… xvi
5.2 Change in the Applicable Law……………………… xvi
5.3 Services and Facilities……………………………… xvi

6 Payments to the Consultant…………………………………… xvi

6.1 Lump-Sum Remuneration……………………… xvi
6.2 Contract Price……………………………………… xvii
6.3 Payment for Additional Services………………. xvii
6.4 Terms and Conditions of Payment……………… xvii
6.5 Interest on Delayed Payments…………………… xvii

7 Settlement of Disputes……………………………………………… xvii

7.1 Amicable Settlement………………………………… xvii
7.2 Dispute Settlement…………………………………… xviii

III Special Conditions of Contract…………………………………………… xix

IV Appendices………………………………………………………………………
xxi
Appendix A – Description of the Services………………………………… xxi
Appendix B – Reporting Requirements…………………………………… xxi
Appendix C – Key Personnel and Subconsultants………………………xxi
Appendix D – Breakdown of Contract Price in Foreign Currency……xxi
Appendix E – Breakdown of Contract Price in Local Currency………xxi
Appendix F – Services and Facilities Provided by the Client………… xxii
Page 55 of 95
 (ii)

Special Notes

1. The Lump-Sum price is arrived at on the basis of inputs – including rates –

provided by the Consultant. The Client agrees to pay the Consultant according to a
schedule of payments linked to the delivery of certain outputs, usually reports.
Lump-sum contracts have the simplicity of administration, the Client having only
to be satisfied with the outputs without monitoring the staff inputs and should be
used for large Assignments in for example Design; Engineering; Supervision and
Management Services; Master plans; Economic and Feasibility studies; and
Surveys.

2. The Contract includes four parts: Form of Contract, the General Conditions of
Contract, the Special Conditions of Contract and the Appendices. The Client using
this standard contract should not alter the General Conditions. Any adjustment to
meet any specific project features should be made only in the Special Conditions.

Page 56 of 95
 (iii)

CONTRACT FOR CONSULTANT’S SERVICES

Large Assignments (Lump-Sum Payments)

Page 57 of 95
 (iv)
I. FORM OF CONTRACT

Large Assignments (Lump-Sum Payments)

This Agreement (hereinafter called the “Contract”) is made the ________)day of the month of
_______________[month], [year], between ___________________________________, [name of
client] of [or whose registered office is situated at
]_________________________________________[location of office] (hereinafter called the “Client”)
of the one part AND

____________________________________________[name of consultant] of [or whose registered

office is situated at] ________________________________________________________[location of
office](hereinafter called the “Consultant”) of the other part.

WHEREAS

(a) the Client has requested the Consultant to provide certain consulting services as defined
in the General Conditions of Contract attached to this Contract (hereinafter called the
“Services”);

(b) the Consultant, having presented to the Client that he has the required professional skills
and personnel and technical resources, have agreed to provide the Services on the terms
and conditions set forth in this Contract;

NOW THEREFORE the Parties hereto hereby agree as follows:

1. The following documents attached hereto shall be deemed to form an integral part of this
Contract:

(a) The General Conditions of Contract;

(b) The Special Conditions of Contract;
(c) The following Appendices: [Note: If any of these Appendices are not used, they should
be deleted from the list]
Appendix A: Description of the Services
Appendix B: Reporting Requirements
Appendix C: Key Personnel and Sub consultants
Appendix D: Breakdown of Contract Price in
Foreign Currency
Appendix E: Breakdown of Contract Price in Local
Currency
Appendix F: Services and Facilities Provided
by the Client

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 (v)

2. The mutual rights and obligations of the Client and the Consultants shall be as set forth in the
Contract; in particular:

(a) The Consultant shall carry out the Services in accordance with the provisions of the
Contract; and
(b) the Client shall make payments to the Consultant in accordance with the provisions of the
Contract.

IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be signed in their respective
names as of the day and year first above written.

For and on behalf of___________________________________________[name of client]

[full name of Client’s authorisedrepresentative_____________________________________________

[title]________________________________________________

[signature]___________________________________________

[date]________________________________________________

For and on behalf of ______________________________________ [name of consultant]

[full name of Consultant’s

authorized representative]___________________________________

[title]______________________________________________

[signature]_________________________________________

[date]_______________________________________________

Page 59 of 95
 (vi)

II. GENERAL CONDITIONS OF CONTRACT

1. GENERAL PROVISIONS

1.1 Definitions Unless the context otherwise requires, the following terms
whenever used in this Contract shall have the following
meanings:

(a) “Applicable Law” means the laws and any other

instruments having the force of law in the Republic of
Kenya as they may be issued and in force from time to
time;

(b) “Contract” means the Contract signed by the Parties, to

which these General Conditions of Contract (GC) are
attached together with all the documents listed in Clause
1 of such signed Contract;

(c) “Contract Price” means the price to be paid for the

performance of the Services in accordance with Clause 6
herebelow;

(d) “Foreign Currency” means any currency other than the

Kenya Shilling;

(e) “GC” means these General Conditions of Contract;

(f) “Government” means the Government of the Republic of

Kenya;

(g) “Local Currency” means the Kenya Shilling;

(h) “Member”, in case the Consultant consists of a joint

venture of more than one entity, means any of these
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 entities; “Members” means all these entities, and
“Member in Charge” means the entity specified in the SC
to act on their behalf in exercising all the Consultant’s
rights and obligations towards the Client under this
Contract;

(i) “Party” means the Client or the Consultant, as the case

may be and “Parties” means both of them;

(vii)

(j) “Personnel” means persons hired by the Consultant or by

any Subconsultant as employees and assigned to the
performance of the Services or any part thereof;

(k) “SC” means the Special Conditions of Contract by which

the GC may be amended or supplemented;

(l) “Services” means the work to be performed by the

Consultant pursuant to this Contract, as described in
Appendix A; and

(m) “Sub consultant” means any entity to which the

Consultant subcontracts any part of the Services in
accordance with the provisions of Clauses 3 and 4.

1.2 Law Governing This Contract, its meaning and interpretation and the
the Contract relationship between the Parties shall be governed by the Laws
of Kenya.

1.3 Language This Contract has been executed in English language which
shall be the binding and controlling language for all matters
relating to the meaning or interpretation of this Contract.

1.4 Notices Any notice, request, or consent made pursuant to this Contract
shall be in writing and shall be deemed to have been made
when delivered in person to an authorized representative of the
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 Party to whom the communication is addressed or when sent by
registered mail, telex, telegram or facsimile to such Party at the
address specified in the SC.

1.5 Location The Services shall be performed at such locations as are

specified in Appendix A and, where the location of a particular
task is not so specified, at such locations, whether in the
Republic of Kenya or elsewhere, as the Client may approve.

1.6 Authorized Any action required or permitted to be taken and any

Representatives document required or permitted to be executed under this
Contract by the Client or the Consultant may be taken or
executed by the officials specified in the SC.

(viii)

1.7 Taxes and The Consultant, Sub consultant[s] and their personnel
Duties shall pay such taxes, duties, fees and other impositions as may
be levied under the Laws of Kenya, the amount of which is
deemed to have been included in the Contract Price.

2. COMMENCEMENT, COMPLETION, MODIFICATION AND

TERMINATION OF
CONTRACT

2.1 Effectiveness of This Contract shall come into effect on the date the
Contract Contract is signed by both Parties or such other later date as
may be stated in the SC.

2.2 Commencement The Consultant shall begin carrying out the Services
of Services thirty (30) days after the date the Contract becomes effective or
at such other date as may be specified in the SC.

2.3 Expiration of Unless terminated earlier pursuant to Clause 2.6, this

Contract Contract shall terminate at the end of such time period, after the
Effective Date, as is specified in the SC.

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2.4 Modification Modification of the terms and Conditions of this Contract,
including any modification of the scope of the Services or the
Contract Price, may only be made by written agreement
between the Parties.

2.5 Force Majeure

2.5.1 Definition For the purposes of this Contract, “Force Majeure” means
an event which is beyond the reasonable control of a Party and
which makes a Party’s performance of its obligations under the
Contract impossible or so impractical as to be considered
impossible under the circumstances.

2.5.2 No Breach The failure of a Party to fulfill any of its obligations under
of Contract the Contract shall not be considered to be a breach of, or default
under, this Contract insofar as such inability arises from an
event of Force Majeure, provided that the Party affected by
such an event (a) has taken all reasonable precautions, due care
and reasonable alternative measures in order to carry out the
terms and conditions of this Contract, and (b) has informed the
other Party as soon as possible about the occurrence of such an
event.

(ix)

2.5.3 Extension Any period within which a Party shall, pursuant to this
Of Time Contract complete any action or task shall be extended for a
period equal to the time during which such Party was unable to
perform such action as a result of Force Majeure.

2.6 2.5.4 Payments Termination

2.6.1 By the The Client may terminate this Contract by not less than
Client thirty (30) days’ written notice of termination to the Consultant,
to be given after the occurrence of any of the events specified in
this Clause;

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(a) if the Consultant does not remedy a failure in the
performance of his obligations under the Contract within
thirty (30) days after being notified or within any further
period as the Client may have subsequently approved in
writing;

(b) if the Consultant becomes insolvent or bankrupt;

(c) if, as a result of Force Majeure, the Consultant is unable

to perform a material portion of the Services for a period
of not less than sixty (60) days; or

(d) if the Consultant, in the judgement of the Client, has

engaged in corrupt or fraudulent practices in competing
for or in executing the Contract.

For the purpose of this clause;

“corrupt practice” means the offering, giving, receiving

or soliciting of any thing of value to influence the action
of a public official in the selection process or in Contract
execution.

(x)

“fraudulent practice” means a misrepresentation of facts

in order to influence a selection process or the execution
of Contract to the detriment of the Client, and includes
collusive practice among consultants (prior to or after
submission of proposals) designed to establish prices at
artificial non-competitive levels and to deprive the Client
of the benefits of free and open competition.

(e) if the Client in his sole discretion decides to terminate

this Contract.

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2.6.2 By the The Consultant may terminate this Contract by not less
Consultant than thirty (30) days’ written notice to the Client, such notice to
be given after the occurrence of any of the following events;

(a) if the Client fails to pay any monies due to the Consultant
pursuant to this Contract and not subject to dispute
pursuant to Clause 7 within sixty (60) days after
receiving written notice from the Consultant that such
payment is overdue; or

(b) if, as a result of Force Majeure, the Consultant is unable

to perform a material portion of the Services for a period
of not less than sixty (60) days.

2.6.3 Payment Upon termination of this Contract pursuant to Clauses

upon 2.6.1 or 2.6.2, the Client shall make the following
Termination payments to the Consultant:

(a) remuneration pursuant to Clause 6 for Services

satisfactorily performed prior to the effective date of
termination;

(b) except in the case of termination pursuant to paragraphs

(a) and (b) of Clause 2.6.1, reimbursement of any
reasonable costs incident to the prompt and orderly
termination of the Contract, including the cost of the
return travel of the Personnel and their eligible
dependents.

(xi)

3. OBLIGATIONS OF THE CONSULTANT

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3.1 General The Consultant shall perform the Services and carry out his
obligations with all due diligence, efficiency and economy in
accordance with generally accepted professional techniques and
practices and shall observe sound management practices, and employ
appropriate advanced technology and safe methods. The Consultant
shall always act, in respect of any matter relating to this Contract or to
the Services, as faithful adviser to the Client and shall at all times
support and safeguard the Client’s legitimate interests in any dealing
with Sub consultants or third parties.

3.2 Conflict of
Interests

3.2.1 Consultant (i) The remuneration of the Consultant pursuant to

Not to Clause 6 shall constitute the Consultant’s sole
Benefit from remuneration in connection with this Contract or
Commissions, the Services and the Consultant shall not accept
Discounts, for his own benefit any trade commission,
Etc. discount or similar payment in connection with
activities pursuant to this Contract or to the Services or in
the discharge of his obligations under the Contract and
the Consultant shall use his best efforts to ensure that his
personnel, any sub consultant[s] and agents of either of
them similarly shall not receive any such additional
remuneration.

(ii) For a period of two years after the expiration of this

Contract, the Consultant shall not engage and shall cause
his personnel as well as his sub consultant[s] and his/their
personnel not to engage in the activity of a purchaser
(directly or indirectly) of the assets on which he advised
the Client on this Contract nor shall he engage in the
activity of an adviser (directly or indirectly) of potential
purchasers of such assets.

(iii) Where the Consultant as part of the Services has the

responsibility of advising the Client on the procurement
of goods, works or services, the Consultant will comply
with any applicable

Page 66 of 95
 (xii)

procurement guidelines and shall at all times exercise

such responsibility in the best interest of the Client. Any
discounts or commissions obtained by the Consultant in
the exercise of such procurement shall be for the account
of the Client.

3.2.2 Consultant The Consultant agrees that, during the term of this
and Contract and after its termination, the Consultant
Affiliates and his affiliates, as well as any Subconsultant
Not to be and any of his affiliates, shall be disqualified from
Otherwise providing goods, works or services (other than the
Interested in Services and any continuation thereof) for any
Project project resulting from or closely related to the
Services.

3.2.3 Prohibition Neither the Consultant nor his subconsultant[s]

of nor their personnel shall engage, either directly or
Conflicting indirectly in any of the following activities:
Activities
(a) during the term of this Contract, any business or
professional activities in the Republic of Kenya
which would conflict with the activities assigned
to them under this Contract; or

(b) after the termination of this Contract, such other

activities as may be specified in the SC.

3.3 Confidentiality The Consultant, his subconsultant[s] and the personnel of

either of them shall not, either during the term of this
Contract or within two (2) years after the expiration of
this Contract, disclose any proprietary or confidential
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 information relating to the Project, the Services, this
Contract or the Client’s business or operations without
the prior written consent of the Client.

3.4 Insurance to be The Consultant (a) shall take out and maintain
Taken Out by the and shall cause any subconsultant[s] to take out
Consultant and maintain, at his (or the subconsultants’, as the case
may be) own cost but on terms and conditions approved
by the Client, insurance against the risks and for the
coverage, as shall be specified in the SC; and (b) at the
Client’s request, shall provide evidence to the Client
showing that such insurance has been taken out and
maintained and that the current premiums have been
paid.

(xiii)

3.5 Consultant’s The Consultant shall obtain the Client’s prior

Actions Requiring approval in writing before taking any of the
Client’s Prior following actions;
Approval

(a) entering into a subcontract for the performance of

any part of the Services,

(b) appointing such members of the personnel not listed

by name in Appendix C (“Key Personnel and
Subconsultants”).

3.6 Reporting The Consultants shall submit to the Client the reports
Obligations and documents specified in Appendix A in the form, in
the numbers, and within the periods set forth in the said
Appendix.

3.7 Documents All plans, drawings, specifications, designs, reports and

prepared by other documents and software submitted by the Consult-
the Consult- ant in accordance with Clause 3.6 shall become and
ant to Be remain the property of the Client and the Consultant
the Propertyshall, not later than upon termination or expiration of this

Page 68 of 95
 of the ClientContract, deliver all such documents and software to the Client
together with a detailed inventory thereof. The Consultant
shall not use these documents for purposes unrelated to this
Contract without the prior approval of the other Party.

4. CONSULTANT’S PERSONNEL

4.1 Description The titles, agreed job descriptions, minimum qualifica-

of Personnel tions and estimated periods of engagement in the carrying out
of the Services of the Consultant’s Key Personnel are described
in Appendix C. The Key Personnel and Sub consultants listed
by title as well as by name in Appendix C are hereby approved
by the Client.

4.2 Removal (a) Except as the Client may otherwise agree, no changes
and/or shall be made in the Key Personnel. If for any reason
Replacement beyond the reasonable control of the Consultant, it
Of Personnel becomes necessary to replace any of the Key
Personnel, the Consultant shall provide as a
replacement a person of equivalent or better
qualifications.

(xiv)

(b) If the Client finds that any of the Personnel have

(i) committed serious misconduct or have been
charged with having committed a criminal action,
or (ii) the Client has reasonable cause to be
dissatisfied with the performance of any of the
Personnel, then the Consultant shall, at the Client’s
written request specifying the grounds thereof,
provide as a replacement a person with
qualifications and experience acceptable to the
Client.

(c) The Consultant shall have no claim for additional

costs arising out of or incidental to any removal
and/or replacement of Personnel.
Page 69 of 95
 5. OBLIGATIONS OF THE CLIENT

5.1 Assistance and The Client shall use his best efforts to ensure that
Exemptions he provides the Consultant such assistance
and exemptions as may be necessary for due
performance of this Contract.

5.2 Change in the If after the date of this Contract, there is any
Applicable Law change in the Laws of Kenya with respect to taxes
and duties which increases or decreases the cost of the
Services rendered by the Consultant, then the
remuneration and reimbursable expenses otherwise
payable to the Consultant under this Contract shall be
increased or decreased accordingly by agreement
between the Parties and corresponding adjustments shall
be made to the amounts referred to in Clause 6.2 (a) or
(b), as the case may be.

5.3 Services and Facilities The Client shall make available to the Consultant the
Services and Facilities listed under Appendix F.

6. PAYMENTS TO THE CONSULTANT

6.1 Lump-Sum The Consultant’s total remuneration shall not

Remuneration exceed the Contract Price and shall be a fixed lump-sum
including all staff costs, Subconsultants’ costs, printing,
communications, travel, accommodation and the like and
all other costs incurred by the Consultant in carrying out
the

(xv)

Services described in Appendix A. Except as provided in

Clause 5.2, the Contract Price may only be increased
above the amounts stated in Clause 6.2 if the Parties have
agreed to additional payments in accordance with Clause
2.4.
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 6.2 Contract Price (a) The price payable in foreign currency is set forth
in the SC.

(b) The price payable in local currency is set forth in

the SC.

6.3 Payment for For the purposes of determining the remuneration

Additional due for additional services as may be agreed under
Services Clause 2.4, a breakdown of the lump-sum price is
provided in Appendices D and E.

6.4 Terms and Payments will be made to the account of the

Conditions of Consultant and according to the payment
Payment schedule stated in the SC. Unless otherwise stated in the
SC, the first payment shall be made against the provision
by the Consultant of a bank guarantee for the same
amount and shall be valid for the period stated in the SC.
Any other payment shall be made after the conditions
listed in the SC for such payment have been met and the
Consultant has submitted an invoice to the Client
specifying the amount due.

6.5 Interest on Payment shall be made within thirty (30) days of

Delayed receipt of invoice and the relevant documents
Payment specified in Clause 6.4. If the Client has delayed
payments beyond thirty (30) days after the due date
hereof, simple interest shall be paid to the Consultant for
each day of delay at a rate three percentage points above
the prevailing Central Bank of Kenya’s average rate for
base lending .

7. SETTLEMENT OF DISPUTES

7.1 Amicable Settlement The Parties shall use their best efforts to settle
amicably all disputes arising out of or in connection with
this Contract or its interpretation.

(xvi)

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7.2 Dispute Settlement Any dispute between the Parties as to matters
arising pursuant to this Contract that cannot be settled
amicably within thirty (30) days after receipt by one
Party of the other Party’s request for such amicable
settlement may be referred by either Party to the
arbitration and final decision of a person to
be agreed between the Parties. Failing agreement to
concur in the appointment of an Arbitrator, the
Arbitrator shall be appointed by the Chairman of the
Chartered Institute of Arbitrators, Kenya Branch, on the
request of the applying party.

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 (xvii)

III. SPECIAL CONDITIONS OF CONTRACT

Number of GC Amendments of and Supplements to Clauses in the

Clause General Conditions of Contract

1.1(i) The Member in Charge is___________________________[name of

Member]

1.4 The addresses are:

Client:
_____________________________________________
Attention:
_____________________________________________
Telephone:
_____________________________________________ Telex;
_____________________________________________
Facsimile:
_____________________________________________

Consultant:
_____________________________________________
Attention:
_____________________________________________
Telephone;
_____________________________________________
Telex:
_____________________________________________
Facsimile:
_____________________________________________

1.6 The Authorized Representatives are:

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 For the Client:
_____________________________________________

For the
Consultant:__________________________________________

2.1 The date on which this Contract shall come into effect
is(_________________) [date].

Note: The date may be specified by reference to conditions of

effectiveness of the Contract, such as receipt by Consultants of
advance payment and by Client of bank guarantee

2.2 The date for the commencement of Services is________[date]

2.3 The period shall be ______________________ [length of time].

Note: Fill in the period, eg, twenty-four (24) months or such other
period as the Parties may agree in writing.

(xviii)

3.4 The risks and coverage shall be:

(i) Professional Liability

___________________________________

(ii) Loss of or damage to equipment and property _____________

6.2(a) The amount in foreign currency or currencies is________________

[Insert amount].

6.2(b) The amount in local Currency is___________________ [Insert

amount]

6.4 Payments shall be made according to the following schedule:

Page 74 of 95
Note: (a) This sample Clause should be specifically drafted for each
Contract and the following installments are indicative only; (b) if the
payment of foreign currency and of local currency does not follow the
same schedule, add a separate schedule for payment in local
currency; and (c) if applicable, detail further the nature of the report
evidencing performance, as may be required, e.g., submission of study
or specific phase of study, survey, drawings, draft bidding documents,
etc., as listed in Appendix B, Reporting Requirements. In the example
provided, the bank guarantee for the repayment is released when the
payments have reached 50 percent of the lump-sum price, because it
is assumed that at that point, the advance has been entirely set off
against the performance of services.

 Twenty (20) percent of the Contract Price shall be paid on the

commencement date against the submission of a bank
guarantee for the same.

 Ten (10) percent of the lump-sum amount shall be paid upon

submission of the inception report.

 Twenty-five (25) percent of the lump-sum amount shall be

paid upon submission of the interim report.

 Twenty-five (25) percent of the lump-sum amount shall be

paid upon submission of the draft final report.

 Twenty (20) percent of the lump-sum amount shall be paid

upon approval of the final report.

 The bank guarantee shall be released when the total payments

reach fifty (50) percent of the lump-sum amount.

(xix)

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 IV. Appendices

APPENDIX A – DESCRIPTION OF THE SERVICES

Give detailed descriptions of the Services to be provided, dates for completion of various
tasks, place of performance for different tasks, specific tasks to be approved by Client,
etc.

APPENDIX B – REPORTING REQUIREMENTS

List format, frequency, and contents of reports; persons to receive them; dates of
submission; etc. If no reports are to be submitted, state here “Not applicable.”

APPENDIX C– KEY PERSONNEL AND SUBCONSULTANTS

List under: C-1 Titles [and names, if already available], detailed job descriptions
and minimum qualifications of Personnel and staff-months for each.

C-2 List of approved Sub consultants (if already available); same

information with respect to their Personnel as in C-1.

APPENDIX D – BREAKDOWN OF CONTRACT PRICE IN

FOREIGN CURRENCY

List here the elements of cost used to arrive at the breakdown of the lump-sum price –
foreign currency portion:

1. Monthly rates for Personnel (Key Personnel and other Personnel).

2. Reimbursable expenditures.

This appendix will exclusively be used for determining remuneration for additional
services.

APPENDIX E – BREAKDOWN OF CONTRACT PRICE IN LOCAL CURRENCY

List here the elements of cost used to arrive at the breakdown of the lump-sum
price – local currency portion.

1. Monthly rates for Personnel (Key Personnel and other Personnel).

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 2. Reimbursable expenditures.

(xx)

This appendix will exclusively be used for determining remuneration for additional
services.

APPENDIX F – SERVICES AND FACILITIES PROVIDED BY THE CLIENT

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 (xxi)

ANNEX II

SAMPLE CONTRACT FOR CONSULTING

SERVICES

LARGE ASSIGNMENTS
AND
Small Assignments

Time-Based Payments

Page 78 of 95
 SAMPLE CONTRACT FOR CONSULTING SEVICES
SMALL ASSIGNMENTS
TIME-BASED PAYMENTS

CONTRACT

This Agreement [hereinafter called “the Contract”) is entered into this _____________
[Insert starting date of assignment], by and between
___________________________________________________
[Insert Client’s name] of [or whose registered office is situated at]
__________________________________________________[insert Client’s
address](hereinafter called “the Client”) of the one part AND

_____________________________________ [Insert Consultant’s name] of[or whose

registered office is situated at]__________________________________________[insert
Consultant’s address](hereinafter called “the Consultant”) of the other part.

WHEREAS, the Client wishes to have the Consultant perform the Services [hereinafter
referred to as “the Services”, and

WHEREAS, the Consultant is willing to perform the said Services,

NOW THEREFORE THE PARTIES hereby agree as follows:

1. Services (i) The Consultant shall perform the Services specified in

Appendix A, “Terms of Reference and Scope of Services,”
which is made an integral part of this Contract.

(ii) The Consultant shall provide the reports listed in Appendix B,

“Consultant’s Reporting Obligations,” within the time periods
listed in such Appendix and the personnel listed in Appendix C,
“Cost Estimate of Services, List of Personnel and Schedule of
Rates” to perform the Services.

2. Term The Consultant shall perform the Services during the period
commencing __________________[Insert start date] and continuing
through to________________[Insert completion date] or any other
period(s) as may be subsequently agreed by the parties in writing.
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3. Payment A. Ceiling

For Services rendered pursuant to Appendix A, the Client shall

pay the Consultant an amount not to exceed a ceiling of
_____________ [Insert ceiling amount]. This amount has been
established based on the understanding that it includes all of the
Consultant’s costs and profits as

(i)

well as any tax obligation that may be imposed on the

Consultant. The payments made under the Contract
consist of the Consultant’s remuneration as defined in sub-
paragraph (B) below and of the reimbursable expenditures as
defined in sub-paragraph (C) below.

B. Remuneration

The Client shall pay the Consultant for Services rendered at the
rate(s) per man/month spent (or per day spent or per hour spent,
subject to a maximum of eight hours per day) in accordance
with the rates agreed and specified in Appendix C, “Cost
Estimate of Services, List of Personnel and Schedule of Rates”.

C. Reimbursables

The Client shall pay the Consultant for reimbursable expenses

which shall consist of and be limited to:

(i) normal and customary expenditures for official road and

air travel, accommodation, printing and telephone
charges; air travel will be reimbursed at the cost of less
than first class travel and will need to be authorized by
the Client’s coordinator;
(ii) such other expenses as approved in advance by the
Client’s coordinator.

D. Payment Conditions.

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 Payment shall be made in Kenya shillings unless otherwise
specified not later than thirty {30} days following submission
of invoices in duplicate to the Coordinator designated in Clause
4 herebelow. If the Client has delayed payments beyond thirty
(30) days after the date hereof, simple interest shall be paid to
the Consultant for each day of delay at a rate three percentage
points above the prevailing Central Bank of Kenya’s average
rate for base lending.

The parties shall use their best efforts to settle amicably all
disputes arising out of or in connection with this Contract or its
interpretation.

4. Project A. Coordinator
Administration
The Client designates _______________________
[Insert name] as Client’s Coordinator; the Coordinator shall be
responsible for the coordination of activities under the Contract,
for receiving and approving invoices
(ii)
for payment and for acceptance of the deliverables by the
Client.

B. Timesheets.
During the course of their work under this Contract, including
field work, the Consultant’s employees

providing services under this Contract may be required to

complete timesheets or any other document used to identify
time spent as well as expenses incurred, as instructed by the
Project Coordinator.

C. Records and Accounts

The Consultant shall keep accurate and systematic records and

accounts in respect of the Services which will clearly identify
all charges and expenses. The Client reserves the right to audit
or to nominate a reputable accounting firm to audit the
Consultant’s records relating to amounts claimed under this
Contract during its term and any extension and for a period of
three months thereafter.
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5. Performance The Consultant undertakes to perform the Services with
Standard the highest standards of professional and ethical competence
and integrity. The Consultant shall promptly replace any
employees assigned under this Contract that the Client
considers unsatisfactory.

6. Confidentiality The Consultant shall not, during the term of this Contract and
within two years after its expiration, disclose any proprietary or
confidential information relating to the Services, this Contract
or the Client’s business or operations without the prior written
consent of the Client.

7. Ownership of Any studies, reports or other material, graphic, software

Material or otherwise prepared by the Consultant for the Client under the
Contract shall belong to and remain the property of the Client.
The Consultant may retain a copy of such documents and
software.

8. Consultant Not The Consultant agrees that during the term of this
to be Engaged Contract and after its termination, the Consultant and
in Certain any entity affiliated with the Consultant shall be
Activities disqualified from providing goods, works or services (other than
the Services or any continuation thereof) for any project
resulting from or closely related to the Services.
9. Insurance The Consultant will be responsible for taking out any
appropriate insurance coverage.
(iii)

10. Assignment The Consultant shall not assign this Contract or Subcontract
any portion thereof without the Client’s prior written consent.

11. Law Governing The Contract shall be governed by the Laws of Kenya and
Contract and the language of the Contract shall be English Language.
Language

12. Dispute Any dispute arising out of this Contract which cannot be
Resolution amicably settled between the parties, shall be referred by either
party to the arbitration and final decision of a person to be
agreed between the parties. Failing agreement to concur in the
Page 82 of 95
 appointment of an Arbitrator, the Arbitrator shall be appointed
by the chairman of the Chartered Institute of Arbitrators, Kenya
branch, on the request of the applying party.

FOR THE CLIENT FOR THE CONSULTANT

Full name; ______________________ Full name

______________________

Title: _____________________________ Title:

__________________________

Signature;________________________
Signature;______________________

Date;____________________________
Date;___________________________

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 (iv)
LIST OF APPENDICES

Appendix A: Terms of Reference and Scope of Services

Appendix B: Consultant’s Reporting Obligation

Appendix C: Cost Estimate of Services, List of Personnel and Schedule of

Rates

Page 84 of 95
 (v)

APPENDIX C

Cost Estimate of Services, List of Personnel and Schedule of Rates.

(1) Remuneration of Staff

Rate Time
(per spent(number
month/day/hour in of month/day/ Total
Name currency) hour) (currency)
(a) Team Leader
(b)
(c)
Sub-Total (1)

(2) Reimbursables

Rate Days Total

(a) Air Travel
(b) Road Transportation
(c) Per Diem
Sub-Total (2)

TOTAL COST ___________________________

Physical Contingency ___________________

CONTRACT CEILING ____________________

Page 85 of 95
 (vi)

ANNEX III

SAMPLE CONTRACT FOR CONSULTING SERVICES

Small Assignments
Lump-sum payments

Page 86 of 95
 SAMPLE CONTRACT FOR CONSULTING SERVICES
SMALL ASSIGNMENTS
LUMP-SUM PAYMENTS

CONTRACT

This Agreement, [hereinafter called “the Contract”) is entered into this

_____________[Insert starting date of assignment], by and between
________________________________________[Insert Client’s name] of [or whose
registered office is situated
at]____________________________________________[insert Client’s
address](hereinafter called “the Client”) of the one part AND

____________________________________________ [Insert Consultant’s name] of [or

whose registered office is situated
at]_____________________________________[insert Consultant’s address](hereinafter
called “the Consultant”) of the other part.

WHEREAS the Client wishes to have the Consultant perform the services [hereinafter
referred to as “the Services”, and

WHEREAS the Consultant is willing to perform the said Services,

NOW THEREFORE THE PARTIES hereby agree as follows:

1. Services (i) The Consultant shall perform the Services specified in

Appendix A, “Terms of Reference and Scope of Services,”
which is made an integral part of this Contract.

(ii) The Consultant shall provide the personnel listed in Appendix

B, “Consultant’s Personnel,” to perform the Services.

(iii) The Consultant shall submit to the Client the reports in the form
and within the time periods specified in Appendix C,
“Consultant’s Reporting Obligations.”

2. Term The Consultant shall perform the Services during the period
commencing on_____________ [Insert starting date] and continuing
through to_____________ [Insert completion date], or any other
period(s) as may be subsequently agreed by the parties in writing.
(i)
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3. Payment A. Ceiling
For Services rendered pursuant to Appendix A, the Client shall
pay the Consultant an amount not to exceed___
_____________ [Insert amount]. This amount has been
established based on the understanding that it includes all of the
Consultant’s costs and profits as well as any tax obligation that
may be imposed on the Consultant.

B. Schedule of Payments

The schedule of payments is specified below (Modify in order

to reflect the output required as described in Appendix C.)

Kshs______________________ upon the Client’s receipt of a

copy of this Contract signed by the Consultant;

Kshs______________________ upon the Client’s receipt of the

draft report, acceptable to the Client; and

Kshs______________________ upon the Client’s receipt of the

final report, acceptable to the Client.

Kshs______________________ Total

C. Payment Conditions

Payment shall be made in Kenya Shillings unless otherwise

specified not later than thirty [30] days following submission by
the Consultant of invoices in duplicate to the Coordinator
designated in Clause 4 herebelow. If the Client has delayed
payments beyond thirty (30) days after the due date hereof,
simple interest shall be paid to the Consultant for each day of
delay at a rate three percentage points above the prevailing
Central Bank of Kenya’s average rate for base lending.

4. Project A. Coordinator.
Administration
The Client designates __________________[insert name] as
Client’s Coordinator; the Coordinator will be responsible for
Page 88 of 95
 the coordination of activities under this Contract, for acceptance
and approval of the reports and of other deliverables by the
Client and for receiving and approving invoices for payment.

B. Reports.

The reports listed in Appendix C, “Consultant’s Reporting

Obligations,” shall be submitted in the course of the
(ii)

assignment and will constitute the basis for the payments to be

made under paragraph 3.

5. Performance The Consultant undertakes to perform the Services with

Standards the highest standards of professional and ethical competence
and integrity. The Consultant shall promptly replace any
employees assigned under this Contract that the Client
considers unsatisfactory.

6. Confidentiality The Consultant shall not, during the term of this Contract and
within two years after its expiration, disclose any proprietary or
confidential information relating to the Services, this Contract
or the Client’s business or operations without the prior written
consent of the Client.

7. Ownership of Any studies, reports or other material, graphic, software

Material or otherwise prepared by the Consultant for the Client under the
Contract shall belong to and remain the property of the Client.
The Consultant may retain a copy of such documents and
software.

8. Consultant Not The Consultant agrees that during the term of this
to be Engaged Contract and after its termination the Consultant and
in certain any entity affiliated with the Consultant shall be
Activities disqualified from providing goods, works or services (other
than the Services and any continuation thereof) for any project
resulting from or closely related to the Services.

9. Insurance The Consultant will be responsible for taking out any

appropriate insurance coverage.
Page 89 of 95
10. Assignment The Consultant shall not assign this Contract or sub-contract
any portion of it without the Client’s prior written consent.

11. Law Governing The Contract shall be governed by the laws of Kenya and
Contract and the language of the Contract shall be English Language.
Language

12. Dispute
Resolution

Amicable The Parties shall use their best efforts to settlement

Settlement amicably all disputes arising out of or in connection with
this Contract or its interpretation.

Dispute If, after thirty (30) days from the commencement of such
Settlement informal negotiations both parties have been unable to
resolve amicably a contract dispute, both parties can seek
for further redress under the law of Kenya – High Court
of Kenya.

(iii)

FOR THE CLIENT FOR THE CONSULTANT

Full name; ______________________________ Full name;______________________

Title: ____________________________________Title:
____________________________

Signature;_______________________________Signature;____________________

Date;____________________________________Date;_________________________

Page 90 of 95
 (iv)LIST OF APPENDICES

Appendix A: Terms of Reference and Scope of Services

Appendix B: Consultant’s Personnel

Appendix C: Consultant’s Reporting Obligations

Page 91 of 95
 (v)

LETTER OF NOTIFICATION OF AWARD

Address of Procuring Entity

_____________________
_____________________
To:

RE: Tender No.

Tender Name

This is to notify that the contract/s stated below under the above mentioned tender have
been awarded to you.

1. Please acknowledge receipt of this letter of notification signifying your acceptance.

2. The contract/contracts shall be signed by the parties within 30 days of the date of
this letter but not earlier than 14 days from the date of the letter.

3. You may contact the officer(s) whose particulars appear below on the subject
matter of this letter of notification of award.

(FULL PARTICULARS)

SIGNED FOR ACCOUNTING OFFICER

Page 92 of 95
FORM RB 1
REPUBLIC OF KENYA
PUBLIC PROCUREMENT ADMINISTRATIVE REVIEW BOARD

APPLICATION NO…………….OF……….….20……...

BETWEEN
…………………………………………….APPLICANT

AND

…………………………………RESPONDENT (Procuring Entity)

Request for review of the decision of the…………… (Name of the Procuring Entity) of
……………dated the…day of ………….20……….in the matter of Tender
No………..…of …………..20…
REQUEST FOR REVIEW
I/We……………………………,the above named Applicant(s), of address: Physical
address…………….Fax No……Tel. No……..Email ……………, hereby request the
Public Procurement Administrative Review Board to review the whole/part of the above
mentioned decision on the following grounds , namely:-
1.
2.
etc.
By this memorandum, the Applicant requests the Board for an order/orders that: -
1.
2.

Page 93 of 95
etc
SIGNED ……………….(Applicant)
Dated on…………….day of ……………/…20…

FOR OFFICIAL USE ONLY

Lodged with the Secretary Public Procurement Administrative Review Board on
………… day of ………....20….………

SIGNED
Board Secretary

Page 94 of 95
DECLARATION FORM

To: Date:
……………………..
The Managing Director,
Kenya Pipeline Company Ltd,
KenPipe Plaza
Sekondi Rd, off Nanyuki Rd, Industrial Area
P. O. Box 73442–00200
Nairobi, Kenya.

The tenderer i.e. (name and address)

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………

declare the following:

a) Has not been debarred from participating in public procurement.

b) Has not been convicted or involved in and will not be involved in corrupt
and fraudulent practices.

c) Has not been insolvent, in receivership, bankrupt or is not in the process

of being wound up and is not the subject of legal proceedings relating to the
foregoing.

d) Is not guilty of any serious violation of fair employment Laws and

practices.

……………………………………………………………………………
Name Signature Date

(To be signed by authorized representative and officially stamped

Page 95 of 95