New vendor development through development order process (Development Order Policy)

Para Provisions
No.
1 Development order process will be without linking to a regular tender.

1.1 The Development Order Policy (DOP) shall be adopted for Capital Equipment, general
spares of equipment and stores items (including chemicals). Development Order, for the
time being, shall not be undertaken for works contracts / LSTK contracts. The
development order for services will be processed as per Para 1.3 below.
1.2 Development order for Goods:

The list of items for development orders has been published on the ONGC tender site
“www.tenders.ongc.co.in” and the link for the same has also been provided on the login
page of e-tender website. Along with the list of items, ONGC has also uploaded technical
specification for information of the vendors. The interested vendor(s)(Indian
manufacturers only) seeking development order can send their request (categorically
indicating the item(s) from such list for which vendor is seeking development order) to
Head INDEG, Oil and Natural Gas Corporation Ltd, Deendayal Urja Bhawan, 5-A Nelson
Mandela Marg, Vasant Kunj, New Delhi – 110070 (e-mail: [email protected] ) alongwith
the supporting documents in respect of their existing manufacturing facility, capability to
manufacture the item for which they are seeking development order (e.g. details of
existing manufacturing facility including machinery/equipment, Udyog Adhaar Certificate/
Udyam Registration Certificate, GST Registration Certificate, Manufacturing License, if
any etc.).

Request of indigenous manufacturers for development order for any other item may also
be considered for examination and development order process.

Besides published list of items identified by ONGC for placement of development orders,
vendors may also suggest the items in use by ONGC which they can develop and supply.
1.3 Development order for Services:
Wherever it is feasible to award a development order for smaller quantities/period and low
risk is involved in execution of development order, request of indigenous service provider
for development order for any Oil field services may be considered for examination and
development order process.
The interested vendor(s)(Indigenous Service provider only) seeking development order
may send their request to Head INDEG, Oil and Natural Gas Corporation Ltd, Deendayal
Urja Bhawan, 5-A Nelson Mandela Marg, Vasant Kunj, New Delhi – 110070 (e-mail:
[email protected] ) for Development order along with the supporting documents in
respect of capability to provide such services for which they are seeking development
order (e.g. existing facility, Udyog Adhaar Certificate/ Udyam Registration Certificate, GST
Registration Certificate etc.).
1.4 Factory/Facilities inspection: Subsequent to examining the request of the vendor for
development order, ONGC after being prima facie satisfied that such domestic vendor
(manufacturer/service provider) has Basic Capability to develop the item/provide the
service, inspection of the factory/facilities will be carried out by ONGC.

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Para Provisions
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1.5 Formal Enquiry: After satisfactory inspection of their factory/facilities and ascertaining
their capability to manufacture the item/provide the service, formal enquiry along with
ONGC tender conditions shall be issued to such vendor seeking their quotation.

1.6 Development order shall be placed at the rates quoted by the vendor or the rates at which
ONGC has placed the latest order for the same item/service of same technical
specifications/scope of work, whichever is lower.

If any item/service being offered is not exactly the same as that of LPR, contract may be
awarded after ascertaining reasonability of rates.
1.7 Payment (Goods): 50% payment will be made after receipt of material at work center
after prior satisfactory inspection and balance 50% will be made against the satisfactory
performance certificate issued by ONGC after field trial testing.
Payment (Services): On case to case basis as per milestone schedule specified in
tender conditions.
1.8 i) A development order shall be considered as executed and the respective bidder shall
be considered as developed / proven source only after satisfactory inspection and
field trial testing and issuance of a certificate by ONGC.
ii) Development order shall be awarded subject to compliance of technical
specification/scope of work, tender conditions including General Terms and
Conditions.
iii) Vendors (bidders) to note that mere applying for development order and subsequent
successful inspection of factory/facilities by ONGC, does not qualify any vendor for
any assured development order(s) from ONGC.
iv) Vendors may get their Chemical samples tested at ONGC labs on payment basis
before/during development process. Wherever testing of chemical samples in ONGC
labs is required as a part of inspection or sampling/bonding by ONGC, testing
charges shall be on ONGC’s account.
v) Notwithstanding the above provisions, successful development and or supply to
ONGC thereof does not guarantee the vendor any assured order(s) from ONGC.
vi) An undertaking regarding development order under execution (if any) will be
submitted by the bidder in its quotation.
1.9 Restriction on no. of development Orders:

Only one development order will be placed on a vendor at a time. On its successful
development, the vendor may be considered for development order for other item (but
one at a time) in case it applies for the same. However, any exception to this can be
allowed in case it is manageable by the vendor concerned, with the approval of the
designated authority of ONGC.

Not more than 3 Development Orders will be placed on different vendors

(manufacturers)/service providers for the same item/service at a time (including
development orders under execution).
1.10 INDEG will also provide all technical assistance to vendors, wherever required.

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Para Provisions
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1.11 In case the bidder has satisfactorily executed development order (i.e. including
satisfactory inspection and Field Trial Testing) for similar items/services in the past in
ONGC/OIL , then the bidder does not have to satisfy experience criteria of BEC in ONGC.
However, ONGC will reserve right to change this policy anytime in future.

1.12 Development Order, R/C for Spares: Any vendor (Indian manufacturer) who want to
develop generalised spares may be given opportunity to develop the generalised spares
through development order process.
1.13 API license/monogram: Requirement of API license and/or API monogram is part of
Technical Specifications for some items. If domestic vendor (manufacturer) do not have
the requisite API license and requests to allow them to develop items without API
License/monogram, ONGC may take a decision to allow the vendor to develop item
without API license/monogram, except for down-hole equipment, tubulars, critical
handling tools and well control equipment etc. Inspection of the items will be done as per
API Standards. However, while participating in regular tender, such developed vendor
should have valid API license as per requirement of the tender.
1.14
If a vendor fails to execute a development order, such vendor will not be considered for
any other development order for a period of one year.

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 LIST OF ITEMS for PRODUCT DEVELOPMENT, under PHASE- 1
Vendors may send their Expression of Interest by 10th January 2021 to

Head INDEG, Oil and Natural Gas Corporation Ltd,

Deendayal Urja Bhawan, 5-A Nelson Mandela Marg,
Vasant Kunj, New Delhi – 110070
(e-mail: [email protected] )

S. NO. ITEM DESCRIPTION

1. CROME CASING PIPES
2. CHROME TUBING PIPES
3. DRILL PIPES
4. HEAVY WEIGHT DRILL PIPE
5. DRILL COLLARS
6. DRILLING STABILIZERS
7. DRILLING/ WORKOVER HANDLING TOOLS --- ELEVATORS, TONGS, SLIPS etc.
8. XC POLYMER
9. POTASSIUM CHLORIDE (KCL)
10. CMC-HVG
11. NIFA
12. PAC-LVG
13. PAC-HVG
14. POTASSIUM FORMATE
SOLID CONTROL EQUIPMENT --- MUD CLEANER/ DEGASSER/ CENTRIFUGE/
15.
LINEAR MOTION SHALE SHAKER
16. SUCKER ROD PUMP AND ITS ACCESSORIES
17. AQUEOUS FOAM FORMING 6% CONCENTRATION
18. ETHYL MERCAPTAN
19. LOW SHEAR VELOCITY FLUIDS/POLYMERS
20. EMD CHEMICAL DOSING PUMP, RECIPROCATING PUMP
21. HSP 20/40, ISP 20/40, ISP 30/50 MESH
22. PIG TRACKER/TRANSMITTER
23. PIPELINE LOCATOR
24. CEMENT ADDITIVES
25. LOGGING CABLES