Sri Lanka PA 1C 5001

Award

Tender

INVITATION BIDS FOR WHEAT IN BULK UNDER PL-480-TITLE I REGULATIONS


Star Trading & Marine, Inc. as agents for and on behalf of Prima Ceylon Limited, hereinafter referred to as the “BUYER”, invites bids IN DUPLICATE for wheat in bulk, subject to the terms and conditions set forth below and the provisions of PL-480 Title I Regulations and Purchase Authorization 1C-5001:


A. Commodity: Wheat of United States origin in bulk.

B. Quantity: Approximately 60,000 Metric tons, 5% more or less for value not exceeding US$8 million as follows:

Quantity Type of Wheat Delivery Period
Approximately 60,000 MT 5% more or less at Buyer’s Option U..S. No. 2 or better Dark Northern Spring Wheat in Bulk August 20-Sept 10, 2002

C. Specifications:

Dark Northern Spring Wheat U.S. No. 2 or better with protein min 15% on 12% moisture basis 

Moisture not exceeding 13.5%, sprout damage not exceeding 0.5% test weight minimum 77 KG/HL. Maximum percentage of dockage 0.7% which is fully deductible. Falling number minimum 300 sec. Current crop.

The wheat supplied by the Seller shall be in sound condition, fit for human edible purposes, without any unpleasant odor, free from any signs of mold, fermentation or deterioration as well as substantially free from live insect pests.

In all other aspects, the quality shall be in strict conformity with the official grain standards of the United States.

Buyers reserve the right to accept or reject any or all offers or to accept any part of any bid.

D. Price:

The price of wheat must be quoted in U.S. Dollars per metric ton net FOB vessel (unstowed/untrimmed) U.S.A. Port(s) or coastal range, or Canadian transshipment points, separately for:

(a) Bulk carriers
(b) Multi-decker vessels (including liners)
(c) Lash/Seabee barges
(d) Tankers

Offers stating a price for quantity to be loaded in one vessel must also state price for loading in more than one vessel.

The bids must be in conformity with Section 6(b) of Purchase Authorization Number 1C-5001. Commissions, fees or other payments to any selling agency are prohibited.

E. Delivery:

(1) Offers must be for the entirety of the delivery period.

(2)
(a) Shipment FOB vessel as per Purchase Authorization. “FOB vessel” shall mean delivery at discharge end of loading spout.

(b) Delivery to be effected at Buyer’s call during the delivery period. Each contract quantity to be loaded in one or more vessels, at Buyer’s option.

© Nomination of shipping port or range of ports and quantity to be delivered to be indicated in the bids.

(d) Bidders are requested to provide in their offers a complete list of prospective loading berths/elevators from which they will supply the commodity and include full information on the physical limitations of each of their prospective loading berths, approaches, channels and/or bridges leading to such berths and other factors which will limit the size of loading vessels. This information must include the vessel’smaximum deadweight, length overall, beam, airdraft, etc., which will be acceptable to the Sellers at their berths/elevators. In the absence of these vessel limitations in the offers, Seller may be required, at Buyer’s discretion, to accept one
large vessel at Seller’s elevator. Actual loading berths to be nominated by Seller within a minimum period of seven (7) days prior to vessel’s ETA at loading port(s).

Nomination of specific loading port(s)/berth(s) shall be made by suppliers to Buyer’s shipping agent, Star Trading & Marine, Inc., 1050 Seventeenth Street, N.W., Suite 450, Washington, D. C., 20036, Fax No. (202) 223-4680, who will nominate the performing vessel(s) on behalf of the Buyer.

(e) In the event Seller nominates as port of loading a port which Master(s) of vessel(s)
engaged to lift the contracted quantity, when not more than seventy-two (72) hours
off the port, deems the port unsafe for entry, Seller is obliged to promptly provide the
contracted quantity at another safe port on the same range at no additional cost to 
the Buyer. Seller is further obliged to pay vessel’s deviation and incidental costs, if 
any, and resulting demurrage occasioned by second port nomination, and to waive 
carrying charges resulting from delay in loading attributed to the change of 
nomination of the port(s).

(f) Substitution of performing vessel, if required by Buyer, to be accepted by Seller on 
the basis that the substitute vessel’s ETA at loading port is same as or later than 
that of the original vessel provided not later than terminal delivery date of the supply 
contract and that the substitute vessel’s dimensions are within the required 
limitations of the loading berth(s).

F. Loading Tolerance:

The loading tolerance of 5% more or less at Buyer’s option shall apply on the mean contract quantity whether the contract is executed by one vessel or by more than one vessel.

G. Load Rate Guarantee:

Seller to guarantee delivery of commodity at the average rate as delineated in the following on vessel’s contracted quantity:

Vessel Contracted Quantity Loading Guarantee
Bulk Carriers: 0 – 9,999.99 M/T 4,000 M/T Per Day
10,000 – 19,999.99 M/T 5,000 M/T Per Day
20,000 – 29,999.99 M/T 6,000 M/T Per Day
30,000 – 39,999.99 M/T 7,500 M/T Per Day
40,000 – 49,999.99 M/T 10,000 M/T Per Day
50,000 M/T and above 12,000 M/T Per Day

Tankers: 0 – 9,999.99 M/T 4,000 M/T Per Day
10,000 – 19,999.99 M/T 5,000 M/T Per Day
20,000 – 29,999.99 M/T 6,000 M/T Per Day
30,000 M/T and above 7,500 M/T Per Day

Tweendeckers: 3,000 M/T Per Day 

per weather working day of twenty-four (24) consecutive hours, Sundays and Charter Party holidays excepted even if used, whether vessel is in berth or not, provided vessel can receive cargo at this rate. No load rate guarantee for loading on Lash/Seabee barges but are to be loaded in regular turn without undue delay. Offers must not make exception to load rate guarantee specified in IFB. However, suppliers may offer separate price in case of awards for less than 15,000 metric tons (with same load rate guarantee).

H. Inspection:

The Buyer shall have the right to appoint his own Inspector at loading port, such inspection will be at Buyer’s expense. The weight at port of loading as per bills of lading and official weight certificate shall be deemed final. The quality and grade shall be in conformity with the specifications given in paragraph B and shall conform to the official grain standards of the U.S. This quality requirement shall be determined at the point of loading to the vessel, by an Inspector holding a license under U.S. Grain Standards Act. The quality, grade, and condition of wheat shall be final at loading.

H. Shipment:

(1) Cargo to be made available for loading at one/two safe berths at one safe port.

(2) Buyer shall give Seller ten (10) days’ notice of vessel’s ETA at loading range, unless otherwise mutually agreed.

All notices provided to Seller by 5:30 p.m. (local time at place of receipt) on a business day shall be deemed to have been received by Seller on the same day as notice is provided. If more than one supplier is loading a vessel at the same loadport, the tender of vessel to one supplier shall constitute tendering to all suppliers.

The Seller shall nominate the loadport within seventy-two (72) hours of receipt of such notice from the Buyer. These notices shall be given by telex or cable or facsimile.

(3) The bid must be made based on the terms and conditions of N.A.E.G.A. Contract No. 2 for FOB sales (Clauses 5, 6, 7, 8, 13, 15, 17, 20 and 21 only), revised as of August 1, 1988, with the exceptions and additions enumerated in this Invitation for Bids which must be complied with by the Bidders. Arbitration to be in London, subject to the rules of Grain and Feed Trade Association of London

(4) Notification of vessel’s readiness to load to be given to Seller or their elevator(s) by Buyer’s
agent or by vessel owner’s agent by letter or telex or facsimile during normal working hours 
on business days, after the vessel has passed the Customs House and obtained the 
Certificate of Cleanliness/Fitness to load. Evidence of such Certificate should be produced, if 
required by the Seller prior to accepting notice of readiness. The laytime to commence at 
0800 hours, the next regular working day after the vessel tenders during regular business 
hours, whether in berth or not. Prior time, if used, not to count. Laytime at second or 
subsequent ports of loading to commence on arrival.

(5) Once the inspection certificate certifying that the vessel has been passed for loading has been submitted to the Seller or their elevators, the vessel’s notice of readiness shall be accepted subject to conditions stipulated the above paragraph, and the laytime shall commence as given above.

(6) Seller to be responsible for all costs and expenses incurred by the Buyer as a result of 
detention and/or demurrage arising therefrom at the loadport, and all other expenses 
incurred by the Buyer as a result of delays in loading or rehandling caused by delivery of grain 
not meeting contract specifications, or for failure of Seller to commence or maintain 
continuity of loading in accordance with the delivery terms specified herein, notwithstanding 
any custom of the port(s) or any provisions of elevator tariffs.

Demurrage/despatch at loadport to be settled directly between owners and commodity supplier at the rate of the governing Charter Party.

(7) Seller shall cooperate with the vessel’s owners to avoid commingling of different classes of wheat.


I. Destination:

Trincomalee, Sri Lanka.

J. Fumigation:

In-transit fumigation with aluminum phosphide by a certified applicator in accordance with the USDA FGIS Fumigation Handbook is required on all cargoes. Fumigation must be witnessed by USDA FGIS and the aluminum phosphide preparation must be contained in packaging as described in the Fumigation Handbook. For tweendeckers and bulk carriers (including push-mode ITB’s), the recirculation method of fumigation will be used. For tankers and tug/barges other than push-mode ITB’s, the surface fumigation will be used. Dust retainers must be used.

Cargo to be fumigated by the Seller at completion of loading at Seller’s expense. Certificate(s) to stipulate the amount of dosage administered and minimum time hatches should remain sealed after application.


K. Payment:

Payment for the grain will be effected in accordance with PL-480 Regulations and Purchase Authorization 1C-5001.

1) To receive direct payment from CCC, under Section 17.9 of the Title I Regulations, the 
supplier must submit the following documents to CCC:

(a) Signed original Form CCC-329 “Supplier’s Certificate” from the commodity
supplier covering the net invoice price for the commodity.

(b) One (1) copy of the supplier’s detailed invoice showing quantity, description,
contracted price, net total invoice price expressed in dollars, the amount for which
financing is requested from CCC, the amount not eligible for financing by CCC and
basis of delivery of the commodity (e.g., F.O.B. vessel).

(c) One (1) copy of the Weight Certificate issued by or on authority of a State or other governmental weighing department, Chamber of Commerce Board of Trade, Grain Exchange, or other independent organization or firm providing public weighing services.

(d) One (1) copy of FAS-359, “Declaration of Sale, signed for the General Sale Manager.

(e) One (1) copy of the ocean Bill of Lading marked “On Board”.

(f) Grade: One (1) copy of Form FGIS-909, “Official Export Grade Inspection Certificate”, covering inspection for grade at the point of loading to the vessel.

(g) Protein: If protein content is not shown on Form FGIS-909, “Official Export Grain
Inspection Certificate”, one (1) copy of a certificate issued by a private laboratory on
the basis of the sample taken at point of loading to vessel which shows protein
content of the wheat.

(h) One (1) copy of a Phytosanitary Certificate.

(i) One (1) copy of Certificate of Origin.

(j) One (1) copy of FGIS inspection log.

(k) copy of “Statement of Fumigant Application Compliance” signed by the certified applicator including certification that the cargo was fumigated in accordance with FGIS regulations and instructions. Additionally, one (1) copy of a statement on official letterhead, issued by the FGIS field office or the State agency designated/ delegated by FGIS to perform inspections services, stating that the fumigation was witnessed by official personnel of FGIS or the State agency.

(l) One (1) copy of a signed statement from supplier to the effect that all documents stipulated by Buyer in Clause L(2) of this IFB have been forwarded to Buyer in accordance with that clause.

CCC is required to issue all payments by electronic transfer. Each supplier submitting documents to CCC for payment must provide the name of the company, the bank ABA number to which payment is to be made, the account number for the company at the bank, the company’s taxpayer identification number and the type of account to be used.

Documents may be hand carried or express mailed to:

U.S. Department of Agriculture
Commodity Credit Corporation
Financial Management Division
3101 Park Center Drive, Suite 1105
Alexandria, VA 22302

or mailed to:

U.S. Department of Agriculture
Commodity Credit Corporation
Attn: Foreign Exports Accounting Section
Mail Stop 0581
1400 Independence Avenue, S.W.
Washington, D. C. 20250-0581

(2) Documentation Required by Buyer:

Sellers to send at their expense original documentation as listed below directly to Prima Ceylon Limited, P. O. Box 1, China Bay, Trincomalee, Sri Lanka, via courier within four (4) business days after completion of loading (plus one (1) copy of each document to Star Trading & Marine, Inc., 1050 Seventeenth Street, N. W., Suite 450, Washington, D. C., 20036). Should Seller fail to courier documents to Consignee during the time prescribed, then the Seller shall be liable for any expenses incurred by Buyer, including but not limited to vessel demurrage and detention at discharge port due to delayed transmittal of documents.

(a) Supplier’s invoice in quadruplicate showing net and gross quantity shipped (net
quantity means less the dockage), specifications, unit price and total value.

(b) Official Export Grain Inspection Certificate issued by the United States Department of
Agriculture Federal Grain Inspection Service. 

© Protein: If protein content is not shown on Form FGIS-909, “Official Export Grain
Inspection Certificate”, original certificate issued by a private laboratory on the basis
of the sample taken at point of loading to vessel which shows protein content of the 
wheat.




(d) Official weight certificate issued by a licensed weigher at the point of loading to
vessel.

(e) Full set in three (3) originals and four (4) non-negotiable copies of clean, shipped on
board ocean Bills of Lading marked “Freight Payable as per Charter Party”, showing
net/gross weight of the consignment.

(f) Original Phytosanitary Certificate.

(g) Original Certificate of Origin.

(h) One (1) copy of FGIS Inspection Log.

(I) Original of “Statement of Fumigant Application Compliance” signed by the certified
applicator including certification that the cargo was fumigated in accordance with
FGIS regulations and instructions. Additionally, original of a statement on official
letterhead, issued by the FGIS field office or the State agency designated/delegated
by FGIS to perform inspections services, stating that the fumigation was witnessed by
official personnel of FGIS or the State agency.

(j) Original signed statement from supplier to the effect that all documents stipulated by
Buyer in Clause L(2) of this IFB have been forwarded to Buyer in accordance with
that clause.


L. Carrying Charges:

(1) Buyer not to be responsible for any storage, interest, or carrying charges if vessel or
vessels have tendered within the delivery period of the contract. Furthermore, carrying,
storage and interest charges to cease accruing on the date vessel or vessels tendered in
all respects ready to load the quantity covered by the Sales Contract.

(2) Buyer not to be responsible for any storage, interest or carrying charges incurred by
and/or during and/or as a result of strikes or other causes of delay in delivery mentioned 
in Clause 20(b) of N.A.E.G.A. Contract No. 2 Form, revised as of January 1, 1985.

(3) Carrying charges, if any, to be computed as follows:

(a) When contract is completed, carrying charges are to be computed after completion
of shipment based upon actual quantity delivered.

(b) When contract is not completed or only partially executed (total quantity delivered
being less than the minimum 95% of the mean contract quantity), carrying charges
are to be computed on the minimum quantity of the contract or the difference
between the minimum quantity of the contract and the quantity actually delivered.

(4) The rate of carrying charges to be one-half (1/2) of one cent ($0.01) per bushel per day plus interest at 1.5% over Citibank NA prime rate in New York in effect on date of purchase.


M. Special Provisions Concerning Delay in Delivery:

Should delivery by the Seller of the wheat or any part thereof or acceptance of the wheat or any part thereof by Buyer, FOB vessel, be prevented or delayed by reason of riots, strikes, lockouts, embargoes, interruption or stoppage of the normal course of labor or transportation 
at the port(s) of delivery or elsewhere preventing the forwarding of goods to such port or ports, shipment of such goods from such port or ports, or by reason of action by Federal, State or local government or authority, the Seller shall be entitled, at the termination of the cause or causes of prevention and/or delay and on the resumption of work after the termination of the strikes, riots, lockouts, whichever occurs later, to as much time as remained for delivery at the commencement of such cause or causes and Buyer’s time to call the delivery shall be similarly extended, provided that either party shall have notified the other within two (2) business days of the commencement of the cause or causes of the prevention and/or delay if such commencement occurs within the contract delivery period or within two (2) business days from the first day of contract delivery period that the cause or causes then existed.

N. BID BOND

Bidder’s offer must be supported by a bid bond in form of a cashier’s check or irrevocable letter of credit in favor of Prima Ceylon Limited to be a value not less than two percent (2%) of the value of merchandise offered, to be collectible by draft at sight accompanied by a statement from Star Trading & Marine, Inc. to the effect that the Bidder did not make written confirmation consistent with the terms and conditions set forth in the award one (1) working day after award has been issued. Such cashier’s check or letter of credit shall be submitted with the further understanding that it shall guarantee that the Bidder will not withdraw his bid within the period hereinafter set forth for the acceptance of bids.

Above-mentioned bid bond will be automatically cancelled by Prima Ceylon Limited, in case of unsuccessful Bidders, within ten (10) days after closing of the award. For successful Bidders, the cashier’s checks or the letter of credit shall be automatically cancelled after presentation and acceptance of Buyer of five percent (5%) of performance bond.

O. Performance Guarantee:

Within two (2) working days of receipt of USDA approval of sale, Seller shall make available to Buyer a guarantee of performance, in the form of an irrevocable letter of credit (L/C) issued by a first-class U.S. bank in favor of The General Manager, Prima Ceylon Limited, P.O. Box No. 1, China Bay, Trincomalee, Sri Lanka, Fax No. 026-33208, in the amount equivalent to five percent (5%) of the value of the awarded contracts. The performance letter of credit shall guarantee full and complete performance by the Seller of the terms and conditions of the IFB. It shall be accompanied by (1) a statement from beneficiary detailing the nature and extent of the Seller’s failure to so comply, and (2) a report from an independent surveyor, laboratory or other competent authority corroborating such detailed statement. This detailed statement will include an explanation of Seller’s breach of contract obligations and dollar value of the loss incurred. The amount to be collected will be limited to this dollar value. This guarantee shall not be collectible where Seller’s failure to perform has been caused by an act of force majeure. The guarantee shall be valid for a minimum of thirty (30) days after completion of loading. Performance bond will be released immediately after the bank handling the commodity letter of credit has paid the Seller. (Buyer will make arrangements with the bank so that payment information is obtained promptly.)


P. Submission of Bids:

All bids should be submitted by telegram, telefax, or in a sealed envelope and should be addressed to the General Manager, Prima Ceylon Limited C/O Star Trading & Marine, Inc. 1050 Seventeenth Street, N.W. Suite 450, Washington, D.C. 20036 Fax No. (202) 223-4680. All bids to be received at the above-mentioned address not later than 1530 hours Washington D. C., time on Thursday, June 20, 2002. If a telefax offer begins to print before 1530 hours on June 20, 2002, and continues printing past that time until completion, Buyer will consider the offer as if it had completed printing by 1530 hours. However, Buyer will not consider a telefax offer which begins printing after 1530 hours. The offer should remain valid up to 10:00 a.m., Washington, D. C., time, Friday, June 21, 2002.

The offers will be opened immediately after the closing time and the Bidders/representatives may be present at the above address. Buyer will give telephonic notice of award and confirmation by wire/telefax to successful Bidders within the period set forth for acceptance of bids. Successful Bidders are required to give confirmation by wire/telefax of their receipt of award within one (1) working day after the issue of the award.

Bidders will not be permitted to withdraw their bids within the period herein set forth for acceptance of bids. No bids received at the address designated above after the closing hour of the date of submission or not in accordance with the terms of this Invitation for Bids will be considered for award. Acceptance of any offer will be subject to approval by the United States Department of Agriculture.

LIN HSIN HUI
General Manager
Prima Ceylon Limited
C/O Star Trading & Marine, Inc.
1050 Seventeenth Street, N.W.Suite 450
Washington, D.C. 20036 

Last modified: Monday, April 14, 2008 05:13:23 PM