Global Vectra fights to stay in ONGC tender
Mumbai-based Global Vectra is trying hard to avoid disqualification in an ONGC tender to hire nine helicopters, each for 10 years, for western offshore crew changes and production operations.
ONGC's Independent External Monitors (IEMs) heard arguments from both Global and ONGC on July 13 (2023) but have not made any recommendations. Global bid in all categories offering nine helicopters, while rival Heligo Charters bid in all categories offering seven in a tender released on February 23 (2023).
When ONGC opened price bids on June 13 (2023), Global bid lowest in Group-I, where ONGC wants three helicopters, each with a capacity to carry up to 5700-kg. Global offered three Bell 412 model helicopters at an evaluated contract rate of $471,457 per helicopter/month; Heligo offered $507,677 per helicopter/month.
ONGC's commercial criteria stipulate that the winning bidder's net worth should be 15% of the annualised bid value. By this yardstick, Global's annual bid value in Group-I works out to Rs297cr ($42m), where 15% is equivalent to Rs44.5cr ($6.3m).
However, Global's last audited balance sheet (for the financial year to March 2022) shows its net worth to be Rs40.43cr ($5.7m), making its bid liable for rejection by ONGC. A well-placed source tells us Global petitioned ONGC's panel of IEMs, seeking protection against disqualification in this tender.
However, he claims the IEM recommendations are non-binding on ONGC. "ONGC's bid criteria are very clear on the net worth of bidders," he argues.
"Global falls short in this area, and its bid must be rejected." He adds that despite not meeting ONGC's net worth threshold, Global has chosen to complain to the IEMs.
"Global has the right to do that in a democracy," he adds. "But it doesn't change ONGC's evaluation criteria."
Our source speculates that Global wants Group-I re-tendered. "If ONGC does this, it will get much higher rates as global demand for helicopters is high," he stresses.
Contacted by this report, Global declined to respond to a phone call for comment.