1. Introduction
The AWB National Pool Tender System (“the Tender System”) is administered on behalf of AWB (International) Ltd (“AWBI”) by KPMG Chartered Accountants.
The Tender System enables Domestic Traders and end-users to purchase wheat from the AWB National Pool by submitting a bid to KPMG.
Only registered bidders’ will be considered. These bids are then provided anonymously to AWBI who rejects or accepts the bids. The identity of bidders is not disclosed to AWBI until the successful bid has been selected.
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KPMG Contacts Details:
KPMG Chartered Accountants
147 Collins Street
Melbourne VIC 3000
Tel: (03) 9838 4291
Fax: (03) 9288 5131
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AWB National Pool Contact Details:
Natasha O'Neill, Swaps Merchant
AWB (International) Ltd
380 La Trobe Street
Melbourne VIC 3000
Tel : (03) 9209 2860
Fax : (03) 9600 0609
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2. Tender Procedure
2.1 Call for Tender
(a) Frequency
Tenders will be called for on Wednesdays, subject to demand. Press releases posted on the AWB Limited website will notify when the next scheduled call for tenders is to be held. Tenders can be called for at weekly intervals, fortnightly intervals or monthly intervals, or as advised by AWBI.
(b) Registration
Prior to submitting a bid to KPMG, interested parties (“you”) are required to register with KPMG using the AWB Bidder Registration Form (PDF 34 Kb).
To be registered, you must submit the following information and documents to KPMG along with the AWB Bidder Registration Form (PDF 34 Kb):
(i) An acknowledgement by a receival agent that you have a storage agreement with a relevant Bulk Handling Company[1];
(ii) A list of at least 2 authorised signatories for your bids; &
(iii) An acknowledgement that you have read, understand and accept the terms and conditions imposed by the:
Bids received by unregistered bidders will not be accepted.
KPMG will make all reasonable attempts to assist you with any queries regarding the procedures and requirements to become a registered bidder.
(c) Communication with AWB (International) Ltd
You may only liaise directly with the AWBI Swaps Merchant to ascertain whether tonnage is available in certain areas for tender, such as segregations available within port zones.
Discussions regarding likely bid prices are not permitted.
(d) Minimum Quantity
Bids must be for a minimum purchase of 2,000 tonnes. This tonnage is restricted to one grade and one port zone. There is no upper tonnage limit. Variations to this will be at AWBI’s discretion.
2.2 Bids
(a) Price
Bids must be submitted as a Natural Terminal Port (“NTP”) Price[2] for the port zone nominated by the bidder.
Bids must be submitted in A$0.50 increments.
The price payable once a bid is accepted by AWBI is the NTP Price adjusted for:
(i) Outturn fees of AWBI's Recceival Agent excluding all outturn fees charged in Western Australia, where applicable;
(ii) Adjustments under the AWB Golden Rewards Payment Scale based on site stack average protein, screenings and moisture payments. Golden Rewards payments will apply to all grades, with the exception of FEED wheat, and will be as per the AWB National Pool Receival Standards as at date the tender is called for; and
(iii) Deduction of freight at the applicable AWBI Swap freight rate at the time of tender.
(“the Adjustments”).
(b) Location
All bids must nominate a port zone.
AWBI will use reasonable endeavours to provide wheat in the port zone nominated by a successful bidder. However, AWBI does not guarantee that it can supply wheat at any particular location.
If wheat is not available in the port zone nominated by a bidder, AWBI may (but is not obliged to) agree to transfer or swap wheat from another port zone to satisfy the successful bidder or discount the price payable for the wheat.
(c) Draw Down Period
Bids must be submitted on the basis of:
(i) a Spot Transfer, where the transfer will occur within 30 days after the acceptance of tender, on a date of AWBI’s nomination; or
(ii) a New Season Transfer, where the transfer will occur in the next season at AWBI’s option.
New Season Transfers will take place in November in Queensland and in December in all other States unless otherwise agreed by AWBI and the successful bidder.
(d) Quality
Wheat will be available for purchase on the basis of the AWBI segregation codes established within a port zone. No guarantee of availability is provided.
You may confirm the availability of grades with the AWBI Swaps Merchant.
(e) Terms of Payment and Transfer of Title
If you are a successful bidder who does not have an AWB Credit Limit, then you must make payment in full within 5 Business Days of receipt of an AWBI invoice, before title will be transferred.
If you are a successful bidder who has an AWB Credit Limit then you must make payment arrangements that are in compliance with the terms and conditions of your AWB Credit Limit for title to be transferred.
Transfer of title occurs in accordance with the AWBI In-Store Transfer Policy (available on the AWB website www.awb.com.au). An In-store Transfer is a transfer by AWBI to a successful bidder of title to wheat stored on behalf of AWBI by a receival agent.
After you have paid your AWBI Invoice for the wheat, you will be sent a receipt and a title transfer ticket that will enable you to collect the contracted tonnages from the applicable receival agent.
3.0 Tender Process
3.1 KPMG Assessment
Bids must be submitted to KPMG by 10.00 am on the day of tender, using the AWB Tender Agreement Form (PDF 35 Kb)
KPMG present VALID bids to AWBI usually no later than 12 noon on the day of tender.
3.2 AWBI Assessment
AWBI will assess whether to accept or reject the bids presented by KPMG at AWBI’s sole discretion. AWBI has the right to reject any or all bids without providing reasons.
3.3 Results
KPMG will communicate (by telephone, facsimile or e-mail) with each bidder, advising them of their success or otherwise. If AWBI accepts your bid then a contract is concluded between you and AWBI on the terms of the AWB Tender Agreement Form.
3.4 Transfer
If you are a successful bidder then you should liaise directly with the AWBI Swaps Merchant to instigate transfer and preferred locations.
3.5 Title Transfer
As part of the registration procedure, you are required to have storage agreement(s) with the relevant Bulk Handling Company(s).
Title transfer will occur on an in-store basis.
Subject to payment, you will receive a warehouse receipt confirming your ownership of the grain transferred to you.
3.6 Dispute Settlement
(a) As a participant in the AWB Tender System you agree to settle all disputes by mediation in the first instance.
(b) If either AWBI or you gives notice of a dispute, then mediation shall occur within 14 days.
(c) Where mediation does not resolve the matter in dispute, then the aggrieved party may seek resolution in a court of the State of Victoria.
(d) You have submitted to the non-exclusive jurisdiction of the courts of the State of Victoria.
[1] Bulk Handling Companies are organisations that receive, store and outturn grain.
[2] NTP Price means the selling price grossed up to include costs for receival, shrinkage and outturn at port
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