Questions over ONGC contract to SAAG

Vol 11, PW 23 (15 May 08) News in Brief

ONGC is under fire for double standards towards companies that violate its Bid Evaluation Criteria (BEC).

Take ONGC’s decision on April 17 to issue Saag RR a contract for modular rigs Saag Pacific and Saag Saffron. A source tells us the BEC said tender documents are not transferable and that MoUs with engineering consultants should be signed by the bidder, not a sister concern.

In this case Saag RR Infra purchased the tender documents, but Saag RR India signed the MoU with consultants AMASE. ONGC first rejected SAAG for violating the BEC but later reversed its position “after telephone calls from the government.

â€‌ Contrast ONGC’s leniency with SAAG to its strict interpretation of the BEC with Ramunia International and its B-22 bid. Ramunia International bought the tender documents but Ramunia Fabricators submitted the bid.

ONGC said this violated the BEC and disqualified Ramunia, which promptly filed a court case. Clearly it helps to have friends in high places.

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