SECURITY SERVICES TONIDARPET INSTALLATION

BHARAT PETROLEUM CORPORATION LIMITED

Bharat Petroleum Corporation Limited (BPCL) hereinafter referred to as "The Principal",

………………………………………. hereinafter referred to as "The Bidder/ Contractor/ Supplier"

The Principal intends to award, under laid down organization procedures, contract/s for “”

The Principal values full compliance with all relevant laws and regulations, and the principles

of economic use of resources, and of fairness and transparency in its relations with its

Bidder/s, Contractor/s and Supplier/s.

In order to achieve these goals, the Principal cooperates with the renowned international

Non-Governmental Organisation "Transparency International" (TI). Following TI's national

and international experience, the Principal will appoint Independent External Monitor(s)

(IEM) as detailed in Annexure who will monitor the tender process and the execution of the

contract for compliance with the principles mentioned above.

Section 1 – Commitments of the Principal

1) The Principal commits itself to take all measures necessary to prevent corruption and to

observe the following principles:

a) No employee of the Principal, personally or through family members, will in connection

with the tender, or the execution of the contract, demand, take a promise for or

accept, for himself/herself or third person, any material or immaterial benefit which

he/she is not legally entitled to.

b) The Principal will, during the tender process, treat all Bidders with equity and reason.

The Principal will, in particular, before and during the tender process, provide to all

Bidders the same information and will not provide to any Bidder confidential /

additional information through which the Bidder could obtain an advantage in relation

to the tender process or the contract execution.

c) The Principal will exclude from the process all known prejudiced persons.

2) If the Principal obtains information on the conduct of any of its employees which is a

criminal offence under the relevant Anti-Corruption Laws of India, or if there be a

substantive suspicion in this regard, the Principal will inform its Vigilance Office and in

addition can initiate disciplinary actions.

Section 2 – Commitments of the Bidder / Contractor / Supplier

1) The Bidder / Contractor / Supplier commits itself to take all measures necessary to prevent

corruption. He commits himself to observe the following principles during his participation

in the tender process and during the contract execution.

a) The Bidder / Contractor/Supplier will not, directly or through any other person or

firm, offer, promise or give to any of the Principal's employees involved in the tender

process or the execution of the contract or to any third person, any material or

immaterial benefit which he/she is not legally entitled to, in order to obtain in

exchange, any advantage of any kind whatsoever during the tender process or during

the execution of the contract.

b) The Bidder / Contractor / Supplier will not enter with other Bidders into any

undisclosed agreement or understanding, whether formal or informal. This applies in

particular to prices, specifications, certifications, subsidiary contracts, submission or

non-submission of bids or any other actions to restrict competitiveness or to

introduce cartelisation in the bidding process.

c) The Bidder / Contractor / Supplier will not commit any offence under the relevant

Anti-Corruption Laws of India; further the Bidder / Contractor / Supplier will not use

improperly, for purposes of competition or personal gain, or pass on to others, any

information or document provided by the Principal as part of the business relationship,

regarding plans, technical proposals and business details, including information

contained or transmitted electronically.

d) The Bidder / Contractor / Supplier will, when presenting his bid, disclose any and all

payments he has made, is committed to, or intends to make to agents, brokers or any

other intermediaries in connection with the award of the contract.

e) The Bidder / Supplier / Contractor shall make sure that the terms of this Integrity pact are also

adopted by its Sub-Contractors / Sub -Sub-Contractors, etc., if any and submit such adoption

confirmation proof to the Principal.

2) The Bidder / Contractor / Supplier will not instigate third persons to commit offences

outlined above or be an accessory to such offences.

Section 3 – Disqualification from tender process and exclusion from future contracts

If the Bidder, before contract award, has committed a transgression through a violation of

Section 2 or in any other form such as to put his reliability or credibility as Bidder into

question, the Principal is entitled to disqualify the Bidder from the tender process or to

terminate the contract, if already signed, for such reason.

1) If the Bidder/Contractor/Supplier has committed a transgression through a violation of

Section 2 such as to put his reliability or credibility into question, the Principal is also

entitled to exclude the Bidder / Contractor / Supplier from future Contract award

process. The imposition and duration of the exclusion will be determined by the severity

of the transgression. The severity will be determined by the circumstances of the case, in

particular the number of transgressions, the position of the transgressors within the

company hierarchy of the Bidder and the amount of the damage. The exclusion will be

imposed for a minimum of 6 months and maximum of 3 years.

2) A transgression is considered to have occurred if the Principal after due consideration of

the available evidences, concludes that no reasonable doubt is possible.

3) The Bidder accepts and undertakes to respect and uphold the Principal's absolute right to

resort to and impose such exclusion and further accepts and undertakes not to challenge

or question such exclusion on any ground, including the lack of any hearing before the

decision to resort to such exclusion is taken. This undertaking is given freely and after

obtaining independent legal advice.

4) If the Bidder / Contractor / Supplier can prove that he has restored / recouped the

damage caused by him and has installed a suitable corruption prevention system, the

Principal may revoke the exclusion prematurely.

Section 4 – Compensation for Damages

1) If the Principal has disqualified the Bidder from the tender process prior to the award

according to Section 3, the Principal is entitled to demand and recover from the Bidder

liquidated damages equivalent to Earnest Money Deposit/Bid Security.

2) If the Principal has terminated the contract according to Section 3, or if the Principal is

entitled to terminate the contract according to Section 3, the Principal shall be entitled to

demand and recover from the Contractor/Supplier liquidated damages equivalent to

Security Deposit / Performance Bank Guarantee.

3) The Bidder agrees and undertakes to pay the said amounts without protest or demur subject only

to condition that if the Bidder / Contractor / Supplier can prove and establish that the exclusion of

the Bidder from the tender process or the termination of the contract after the contract award has

caused no damage or less damage than the amount of the liquidated damages, the Bidder /

Contractor/Supplier shall compensate the Principal only to the extent of the damage in the amount

Section 5 – Previous Transgression

1) The Bidder declares that no previous transgression occurred in the last 3 years with any other

Company in any country conforming to the TI approach or with any other Public Sector Enterprise in

India that could justify his exclusion from the tender process.

2) If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender

process or the contract, if already awarded, can be terminated for such reason.

Section 6 – Equal treatment of all Bidders /Contractors /Suppliers/Subcontractors

1) The Bidder/Contractor/Supplier undertakes to demand from all subcontractors a commitment in

conformity with this Integrity Pact, and to submit it to the Principal before contract signing.

2) The Principal will enter into agreements with identical conditions as this one with all Bidders,

Contractors/Suppliers and Subcontractors.

3) The Principal will disqualify from the tender process all Bidders who do not sign this Pact or violate

its provisions.

Section 7 – Punitive Action against violating Bidders /Contractors /

Suppliers/Subcontractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Supplier or Subcontractor, or of

an employee or a representative or an associate of a Bidder, Contractor, Supplier or Subcontractor

which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal

will inform the Vigilance Office.

Section 8 – Independent External Monitors

1) The CVC has appointed competent and credible Independent External Monitors for this Pact. The

task of the Monitor is to review independently and objectively, whether and to what extent the

parties comply with the obligations under this agreement.

2) The Monitor is not subject to instructions by the representatives of the parties and performs his

functions neutrally and independently. He reports to the Chairperson of the Board of the Principal.

3) The Bidder/Contractor/Supplier accepts that the Monitor has the right to access without restriction

to all Project documentation of the Principal including that provided by the

Bidder/Contractor/Supplier. The Bidder/Contractor/Supplier will also grant the Monitor, upon his

request and demonstration of a valid interest, unrestricted and unconditional access to this project

documentation. The same is applicable to Subcontractors. The Monitor is under contractual

obligation to treat the information and documents of the Bidder/Contractor/Supplier/Subcontractor

with confidentiality.

4) The Principal will provide to the Monitor sufficient information about all meetings among the

parties related to the Project provided such meetings could have an impact on the contractual

relations between the Principal and the Bidder/Contractor/Supplier. The parties offer to the

Monitor the option to participate in such meetings.

5) As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so

inform the Management of the Principal and request the Management to discontinue or heal the

violation, or to take other relevant action. The Monitor can in this regard submit non-binding

recommendation. Beyond this, the Monitor has no right to demand from the parties that they act in

a specific manner, refrain from action or tolerate action. However, the Independent External

Monitor shall give an opportunity to the Bidder/Contractor/Supplier to present its case before

making its recommendations to the Principal.

6) The Monitor will submit a written report to the Chairperson of the Board of the Principal within

to 10 weeks from the date of reference or intimation to him by the 'Principal' and, should the

occasion arise, submit proposals for correcting problematic situations.

7) If the Monitor has reported to the Chairperson of the Board a substantiated suspicion of an offence

under relevant Anti-Corruption Laws of India, and the Chairperson has not, within reasonable time,

taken visible action to proceed against such offence or reported it to the Vigilance Office, the

Monitor may also transmit this information directly to the Central Vigilance Commissioner,

Government of India.

8) The word 'Monitor' would include both singular and plural.

9) The IEMs appointed for this contract are

Shri. Shantanu Consul Shri. Vikram Srivastava Shri. Virendra Bahadur

ADDRESS ADDRESS ADDRESS

No.9MCHS (IAS Officers E-202, Second Floor , Greater H.No. B-5/64, Vineet Khand,

Colony), 16th Main, 5th C Kailash Part 2, New Delhi - Gomati Nagar, Lucknow -

Cross, BTM 2nd stage, 110048

Bangalore – 560

[email protected] vikramsrivastava1973@gmail [email protected]

Section 9 – Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Contractor/Supplier

months after the last payment under the respective contract, and for all other Bidders 6 months after

the contract has been awarded.

If any claim is made / lodged during this time, the same shall be binding and continue to be valid

despite the lapse of this pact as specified above, unless it is discharged / determined by Chairperson of

Section 10 - Other provisions

1) This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered

Office of the Principal, i.e. Mumbai. The Arbitration clause provided in the main tender document /

contract shall not be applicable for any issue / dispute arising under Integrity Pact.

2) Changes and supplements as well as termination notices need to be made in writing. Side

agreements have not been made.

3) If the Bidder/Contractor/Supplier is a partnership or a consortium, this agreement must be signed

by all partners or consortium members.

4) Should one or several provisions of this agreement turn out to be invalid, the remainder of this

agreement remains valid. In this case, the parties will strive to come to an agreement to their

original intentions.

5) Any Bidder / Supplier / Contractor entering into Integrity Pact, aggrieved by any decision / action of

the Principal, shall approach the IEM(s) and await their decision before pursuing any other remedy

available to him in law.

For the Principal For the Bidder/Contractor/Supplier

Place ……………… Witness

(Signature/Name/Address)

Date ………….….. (Signature/Name/Address)