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1 APPOINTMENT OF CARGO GENERAL SALES AGENT ( GSA ) FOR AIR INDIA- NEPAL TENDER DOCUMENT Air India Limited Registered Office At: Airlines House, 113 Gurudwara Rakabganj Road, New Delhi , India Phone: edcargo@airindia.in Date:18 th January,2018 Local office Address Country Manager Air India Limited, Hattisar Kathmandu Nepal Phone: FAX: cm.nepal@airindia.in 1

2 TABLE OF CONTENTS Sr. No. Contents Page No 1. Table of contents 2. Disclaimer 3. Summary of Bidding Information 4. Invitation for Bids (IFB) 5. Instructions to Bidders 6. Technical Bid 7. Financial Bid 1. DISCLAIMER 2

3 The information contained in this tender document (hereinafter referred to as Tender or Tender Document ) or/and any information pertaining to the aforesaid subject matter provided subsequently to the Applicants/Bidders in any form by Air India Ltd. shall be subject to the terms and conditions which are contained herein and any other terms and conditions as may be prescribed by Air India Ltd prior to award of the Tender. The purpose of this Tender is to provide all Bidders with the information that may be useful to them in the formulation of their Bids in response to this Tender. The statements and facts contained herein, which reflect various assumptions and assessments arrived at by Air India Ltd. do not purport to contain all/exhaustive the information on the aforesaid subject matter that each applicant may require for the purposes of submitting their Bids. The assumptions, assessments, statements and information contained in this Tender may not be complete, accurate, adequate or correct. Each Bidder should, therefore, conduct its own due diligence, investigations and analysis and should check the accuracy, adequacy, correctness, reliability and completeness of the assumptions, assessments, and information contained in this tender document and shall obtain independent advice from appropriate sources. The information provided in this Tender to the Applicants is on a wide range of matters, some of which depends upon interpretation of law. The information given is not an exhaustive account of statutory requirements and should not be regarded as a complete or authoritative statement of law. Air India Ltd. accepts no responsibility for the accuracy or otherwise for any interpretation or opinion on the law expressed herein. Air India Ltd. also accepts no liability of any nature whether resulting from negligence or otherwise however caused arising from reliance of any Applicant/Bidder upon the statements contained in this Tender. Air India Ltd. may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information, assessment or assumption contained in this Tender, from time to time till opening of the Bids (technical and financial). The Tender does not imply that Air India Ltd. is bound to select a Bidder or to appoint the Selected Bidder, as the case may be, and Air India Ltd. reserves the right to reject all or any of the Bids without assigning any reason at any time. The Bidder shall bear any and all its costs associated with or relating to the preparation & submission of its Bids including but not limited to preparation, copying, postage, delivery fees, expenses associated with any demonstrations or presentations which may be required by Air India Ltd. or any other costs incurred in connection with or relating to its proposals. All such costs and expenses shall remain with the Bidder and Air India Ltd. shall not be liable in any manner whatsoever for the same or any other costs or other expenses incurred by the Bidder in preparation or submission of the proposal, regardless of the conduct or outcome of the bid selection process as contained herein. **************************************************************************** 3

4 Air India Limited 2. SUMMARY OF BIDDING INFORMATION 1 NAME OF WORK Cargo General Sales Agent for Nepal 2 AVAILABILITY OF BIDDING DOCUMENT From 19 th February 2018 to 12 th March,2018 at 3 TIME AND DATE FOR SEEKING CLARIFICATION ON BID DOCUMENT 26 th Febraury,2018 from 10am to 5 pm 4 LAST DATE AND TIME FOR RECEIPT OF BIDS 12 th March, hours 5 TIME AND DATE OF OPENING OF TECHNICAL BIDS Will be informed 6 PLACE OF OPENING OF Air India Limited TECHNICAL BIDS 7 BID VALIDITY 120 days from the date of opening of Technical Bid or as advised. 8 CONTACT PERSON Country Manager, Air India Limited, Hattisar Kathmandu Nepal Phone: FAX: cm.nepal@airindia.in 4

5 3. INVITATION FOR BIDS (IFB) 5

6 AIR INDIA LIMITED 3. INVITATION FOR BIDS (IFB) APPOINTMENT OF CARGO GENERAL SALES AGENT FOR AIR INDIA-NEPAL. 1. Air India Limited, a company constituted under the Indian Companies Act 1956, with its registered office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi , India, operates as AIR INDIA (hereinafter referred to as Air India or Airline or AI ) as a national flag carrier for India. The Airline operates flights within India, as well as to International Destinations, and inter alia, has major operations & maintenance bases at Mumbai and New Delhi, and other cities in India. The Airline intends to appoint Cargo General Sales Agent (GSA) at Nepal covering all on-line & important off-line stations within Nepal and any off-line territory beyond Nepal on total discretion and right of Air India. The online station / gateways for Air India in Nepal currently is Kathmandu 2. The scope of the work (hereinafter referred to as Works ) for the GSA shall be as detailed under the Bid documents and such as may be mentioned in the GSA Agreement. 3. The bidders (hereinafter referred to as Bidders/Applicants ) who have experience in similar Works and have established organization as mentioned in the eligibility criteria listed herein, for taking up such Works and who satisfy the qualification criteria of Bid Documents, need only apply. 4. The Airline invites sealed bids in two stage bid system i.e. the Technical and Financial Bid. The first stage of the bidding process shall involve the opening of the General Information and Eligibility Criteria (collectively referred to as Technical Bid ) and the second stage shall involve the opening of the Selection criteria (referred to as Financial Bid ). For the bid submission purposes, the Bidders shall ensure that each of the aforesaid bids should be sealed in two different envelopes, and further super-scribed in bold as Technical Bid for the work Cargo General Sales Agent for Nepal - Tender Ref No. KTM /CARGO-GSA/2018 dated 19 th February 2018 and Financial Bid for Appointment of Cargo GSA for Nepal Tender Ref No. KTM/CARGO-GSA/ 2018dated 19 th February, 2018 respectively. Further, the Technical Bid must be submitted in a hard bound form (hard bound implies binding between two covers through stitching or otherwise, whereby it may not be possible to replace any paper without disturbing the documents). Spiral Bound may be submitted provided it is done in such a manner that the documents are not loose in the spiral binding. Loose form, stapled sheets of papers, open/unsealed envelopes etc. without supporting papers should not be submitted. Further, all pages of the bid shall be electronically numbered serially with signature & seal on each pages, along with an index of submissions. Figures quoted in financial bid should be covered with a transparent adhesive tape. 5. All relevant supporting documents attached with the said bids should be duly selfcertified and signed along with seal by the Bidder. In case the bids are not accompanied by any and all supporting documents, the bid shall be liable to be rejected. 6. A complete set of bidding documents are available online on the website of Air India at All bids must be accompanied by Earnest Money Deposit(refundable) of the amount NPR 500,000 ( Nepal Rupee Five Hundred 6

7 Thousand only) in the form of Banker s Cheque drawn in favour of Air India Limited payable at Kathmandu, Nepal. Bidding parties Cheques will not be accepted. No other forms of payment would be accepted. In case EMD is not found attached in the Technical Bid, or not submitted in the mode specified, the bid will be rejected. The EMD for unsuccessful bidders shall be returned/ refunded without any interest within 10 days of Technical Bid Finalization or within 90 days of the last date of the application. The refund of EMD shall be in the form of banker s cheque in favor of the unqualified bidders. The applicant/ bidders may, by specific instructions in writing to Air India, give the name and address of the person in whose favour the banker s cheque shall be drawn by Air India for refund, failing which it shall be drawn in the name as mentioned in the bid and shall be posted to the address given in the technical bid. In the case of successful Bidder the EMD would be returned after submission of Bank Guarantee and Execution of the Agreement. In the event of successful bidder withdrawing /backing out due to any reason, the EMD amount will be forfeited to Air India and will not be refunded/returned 7. EMD shall be forfeited, without prejudice to any other right or remedy that may be available to Air India under the Tender document or the Contract or otherwise, under any of the following conditions: a. If a Bidder withdraws its bid at any stage of the Tender process. b. In case of Successful Bidder, if it fails within the specified time limit to sign and return the duplicate copy of the letter of award (if any) ; or, to sign the contract, if awarded; or to furnish the security deposit / bank guarantee. 8. Further, the EMD of the Successful Bidder shall be forfeited in the following cases: a. if the Successful Bidder withdraws or amends its or deviates or derogates from the conditions of the Tender in any respect, or declines to accept the Contract if awarded in its favour; b. if the Successful Bidder fails to operationalize the contract within 60 days of appointment due to the reasons specifically attributable to the Successful Bidder/Applicant. c. if the Successful Bidder having signed the Contract, commits any breach there-of prior to furnishing the security deposit / bank guarantee. d. The EMD of the Successful Bidder shall be adjusted against Security Deposit to be furnished herein. 9. Once a Bidder has been declared as the Successful/Qualified Bidder and has been shortlisted as per the process, the Successful Bidder/Applicant will have to submit a Security Deposit based on billing cycle and credit period which is currently 45 days for the entire period of contract, which can be annually reviewed and renewed, if required. The Security Deposit can be submitted in the form of Bank Guarantee, within 10 (Ten) working days or otherwise as communicated, on issue of letter of intent or immediately on the day of signing of Contract. This Security Deposit amount shall be forfeited in full, in case the Successful Bidder backs out or they fails to operationalize the Contract within 30 (thirty ) days or as stipulated on the execution of the same. 7

8 10. All bids must be delivered by the mode of courier or by hand, on the given address: Country Manager Air India Limited, Hattisar Kathmandu Nepal Phone: FAX: The Technical Bids will be opened on the due date by authorized official 11. The Financial Bids of only those bidders who fulfill all the Technical bid criteria will be opened. 12. The Airline reserves the Right to accept or reject any bid without assigning any reason whatsoever and to annul the bidding process and reject all bids, at any time prior to award of Contract, without thereby incurring any liability to the affected Bidder or Bidders or any obligation to inform the affected bidder or bidders of the grounds for the Airline s action. 13. The Airline reserves the Right to amend at any time and/or re-issue the Bid Document without the applicant(s)/bidder(s) having no/any right to objection Bidders may seek clarification, if required, only pertaining to Bid process and its documents in writing on the given address or and the same must be attached as part of Bid Document. The Airline shall endeavor to provide clarifications and such further information as it may, in its sole discretion, consider appropriate for facilitating a fair, transparent and competitive bidding process. However, the Airline reserves the right not to respond to any question or provide any clarification, in its sole discretion, and nothing contained herein shall be taken or read as compelling or requiring the Airline to respond to any question or to provide any clarification. Sd/- Country Manager Air India Limited, Hattisar Kathmandu Nepal Phone: FAX: cm.nepal@airindia.in 8

9 4. INSTRUCTIONS TO BIDDERS 9

10 Air India Limited Appointment of Cargo General Sales Agent of Air India 4. INSTRUCTIONS TO BIDDERS General 1. Scope of Bid Air India Limited (hereinafter called the Airline ), invites sealed bids from eligible Applicants/Bidders, for the appointment of Cargo General Sales Agent for Air India in Nepal as per the details given in invitation for Bids, under a two (2) bid system i.e Technical and Financial Bid for the work scope as listed herein and the Contract. 2. Scope of Works Air India is desirous of appointing General Sales Agent in Nepal for air cargo services. The initial term of the Contract would be three (3) years and extendable by 2 (Two) years from the date of execution of the same. However, the performance of the Cargo General Sales Agent shall be subject to review every year and /or as and when required.. The scope of work has been laid down herein and in the forms of the Contract attached as Annexure B. 3. Definitions For the purpose of the Tender following definitions are defined as under: a. The term Applicant / Bidder, as used in the Tender, shall mean the entity that has signed the Tender and submitted the quotation in response to the Tender. b. The term Days shall mean the working days of the region (Air India). c. The term Contract shall mean the agreement entered into between AI and the Successful/ Qualified Bidder, confirming its acceptance of the Tender, on the terms and conditions and the quote given by the bidder mentioned therein. d. The term General Sales Agent (GSA) shall mean the exclusive representative of Air India in the Territory of Appointment i.e. Nepal for the purpose of the Works. The GSA is required to carry out the Works as contemplated in this Tender and the Contract (attached herewith in Annexure-B). e. The term Territory shall mean the geographical limits of the country i.e Nepal. f. The term Successful Bidder/Applicant shall mean the Bidder/Applicant who has been awarded the Contract for the Work Scope contemplated in this Tender. g. The term Turnover of Applicant shall mean the monetary value of the sale related to airlines business made by the GSA in Nepal 10

11 h. The term Works / Work Scope shall mean the works as listed herein and the Contract. 4. Tender fee The tender document fee is Nil and Tender can be downloaded from the Air India website under the tenders section. All bids must be accompanied by EMD of NPR ( Nepal Rupee Five Hundred Thousand ) ********************************************************** 11

12 5. TECHNICAL BID 12

13 5. Technical Bid Each Applicant/Bidder shall provide the information/ details/ document pertaining to the following particulars: 1. Basic mandatory information: Basic Mandatory Information (Technical Bid) S.N o Details 1. What is the name and legal status of your organization in Nepal and if it is a part of any group, the name of the Group and its Registered Office. 2. What is the Core business of your organization 3. Full address of your organization along with the contact details of the authorized person submitting the bid on behalf of your organization along with the authority document.( ID, alternate ID, telephone numbers, mobile phone number) 4. Date of establishment of your organization and the group(if applicable) 5. Is your organization owned or associated (Fully/Partly- Financially or otherwise) by any other organization? Give the full name of the owners/promoter must be given with the details of the Owner/Share ratio.. 6. Is your Organization is fully Registered as per the Country Law and has met all the obligation as per the law of the land(respective Country Law). Further entitles your company to represent foreign airlines. i.e. Air India. 7. Have any partners, officers/ directors/ employees having authorization to act and sign on behalf of your organization, been involved in bankruptcy proceedings? If yes, are they now legally and fully discharged of their obligations by the court involved? Please attach confirmation on letter head under Bidder/Applicant s seal/duly signed by Authorized Signatory 13

14 8. Attach photographs of the exterior and interior of your current office at various locations (On line Station where AI operates). The name of the Bidder/Applicant should be clearly visible in the photograph. 9 Provide the details of your bank account, your bankers and their addresses, and Contact Number, Contact Person(if Possible) Attach the Formal letter from the Your Bank on the letter head of the Bank verify/certifying the details 10. EMD Attached as prescribed. Details Attached. Name of Bank, Amount, Date. Authorized Signature Seal of the Company 14

15 2. Prequalification Criteria: For the following prequalification requirements, bidders MUST submit documentary support. I. Technical bids must be accompanied by Earnest Money Deposit (Refundable) of the amount NPR ( Nepal Rupee Five Hundred Thousand only) in the form of Banker s Cheque drawn in favour of Air India Limited payable at Kathmandu, Nepal. Technical Bids unaccompanied by EMD will be summarily rejected. II. The bidder / applicant should have minimum turnover NPR 53,539,200 to qualify for this Tender.The Calculation to arrive the turnover would be : Sum of last 3(Three) Financial year Business/ Financial turnover to be divided by 3(Three) to get the average turnover III. The applicant entity should have at least 5 (five) years of experience as GSA or in Cargo business in Nepal. Cargo business in this context refers to sale of air cargo transportation on scheduled Airline services. Experience in business refers to experience of the Applicant/ Bidder and not of the partners/ owners/ directors and /or an associate/ group company. IV. The Applicant for prequalification should be a single entity to be appointed as GSA and under this Tender document. The Applicant should be either a company or a partnership firm. However, no Applicant applying individually can be a member of another applicant. Applicants/ bidders are advised that pre-qualification of applicants will be entirely at the discretion of the Airline. Applicants will be deemed to have understood and agreed that no explanation or justification on any aspect of the bidding process or selection will be given by the Airline. ************************************************************ 15

16 3. Mandatory Technical Requirement The Bidders/ applicants should fulfill all eligibility criteria (Technical Bid) in order for their applications to be processed further. Wherever desired, the bidders/applicants should tick on the applicable options mentioned under the respective fields in the table given below. The documents of applicants/ bidders, who do not fulfill even one of the eligibility criteria listed below, may be rejected by the Airline at its discretion. Mandatory Technical Bid Requirement(Eligibility Criteria) 1. (i)the Applicant entity preferably is acting in the capacity of a Cargo GSA in Nepal and who is recognized by and has billing through IATA-CASS (ii)in case the applicant does not have billing arrangement with CASS, applicant/bidder should be prepared to take the CASS activity of Air India or get themselves through CASS Billing arrangement for YES/NO YES/NO Air India business or take over the billing activity of Air India directly. 2. The applicant entity should have at least 05 (five) years of experience as GSA, in Cargo business in Nepal. Cargo business in this context refers to sale of air cargo transportation on scheduled Airline services. Experience in business refers to experience of the Applicant/Bidder and not of the partners/owners/directors and/or an associate/group company. Specify number of years in cargo business Nepal. Please provide the registration number of the Bidder/Applicant. (attach certified copy of certificate of incorporation/registration number of the Bidder/Applicant). 3. Should not be an IATA Accredited agent (Freight Forwarder). If the applicant is an IATA accredited cargo agent (Freight Forwarder) then applicant / bidder willing and must surrender the IATA accreditation if appointed as a GSA for Air India. 4. Should not have been in loss for the last 3 (three) consecutive years (immediately preceding the date of this Tender). (Attach audited financial statements along with the auditor s report for the past 3 (three) years (immediately preceding the date of this Tender) 5. Should not be Cargo GSA for any airlines operating direct services (single flight number) including code share operation from that Nepal to India (Specify the airlines for whom applicant act as a GSA). YES/NO YES/NO YES/NO 16

17 6. No member of the applicant s immediate family (parents/spouse/children) should be running any Company/GSA who operates direct services (single flight number including code share operations from that Territory to India. Any such eventualities in future should be intimated to Air India in writing. 7. Should be familiar /have experience with IATA CASS procedures or any other equivalent applicable procedures in respective/designated territory. 8. Should undertake to cover financial defaults of any agent / Freight Forwarder etc appointed/performing in the respective/designated territory of GSA. YES/NO YES/NO YES/NO 9. Should be willing to take appointment as GSA for Air India in the designated territory an Unconditional & Irrevocable Bank Guarantee/Financial Coverage (in the format given by Air India) or cash deposit as advised by Air India. 10. Should have minimum turnover of at least Rs (NPR)per Financial Year based on average of last three years. 11. Should have on its payroll adequate number & experienced staff for online/off-line stations and willing to provide at required location. 12. The following applies for appointment as GSA for Air India: Performance security: The Applicant is willing to accept the assured revenue to be remit to Air India as per the revenue commitment submitted in the financial bid. In the event of non-achievement of assured revenue target, GSA would be given an opportunity of 90 (ninety) days to come up to the expectations of Air India and his performance would be monitored. If the GSA is not able to perform in the said time frame, Air India reserves full right to terminate the Contract, besides the recovery of the financial deficit from the assured financial coverage. 13. The applicant agrees to offer and maintain at its own cost the offices of at least 250 Sq. Ft at online station and at other cities as per requirement. The office should be provided with all office infrastructure including Telephone, internet, mobile, stationery as per requirement. A provision for Cabin/Designated office for Air India official may also be made available. YES/NO YES/NO YES/NO Yes/No YES/NO 17

18 14. The Applicant Company/Bidder should not have been into any kind of legal dispute or arbitration in the past with Air India or its subsidiaries. 15. The applicant agrees to bear legal costs of defending any action by any incumbent agent of Air India and bear the cost of compensation if any, awarded as a result of terminating such incumbent agent(s), if applicable YES/NO YES/NO N.B: In case, any Applicant replies with regard to the above in negative (i.e as - No) or with any conditions attached to the technical bid, the applicant shall be disqualified from the tender process; in which case the applicant shall not have any claim whatsoever against Air India. Authorized Signature Seal of the Company 18

19 4.Technical Bid Terms & Conditions I. A Bidder/Applicant is permitted to submit only one Bid for respective territory. More than one Bid by any applicant will disqualify the applicant. II. An Applicant shall not have a conflict of interest (the Conflict of Interest ) that affects the bidding process. Any Applicant found to have a Conflict of Interest shall be disqualified. An applicant shall be deemed to have a Conflict of Interest affecting the bidding process, if: a) A constituent of such applicant is also a constituent of another applicant; or b) Such applicant has the same legal representative for purposes of this tender as any other applicant; or c) Such applicant has a relationship with another applicant directly or through common third party/ parties, that puts either or both of them in a position to have access to each others information about, or to influence the bid/application of either or each other; or d) Such applicant has participated as a consultant to the Airline (i.e. Air India) in the preparation of any documents or technical specifications of this tender. Litigation History The Bidder/Applicant should provide accurate information about any litigation or arbitration resulting from contracts completed or ongoing under its execution in the past since the time of its incorporation. A consistent history of awards against the Bidder/Applicant or any partner of a joint venture will result in failure of the application. Suppression of any information or material in this regard would be construed as a fundamental breach and Air India reserves its right to take appropriate action including cancellation of the bid, forfeiting of bid security etc., as may be deemed fit and proper by AI at any time without requiring giving any notice to the Applicant in this regard. Disqualification Even though the Bidders/Applicants meet the above criteria, they are subject to be disqualified if Bidder/Applicant or any of its constituent partners have: A. Made misleading or false representation in the forms, statements, and attachments submitted; or B. Records of poor performance since the time of its incorporation, as on the date of application such as abandoning the work, rescinding of contract for which the reasons are attributable to the non-performance of the Bidder/Applicant, inordinate delays in completion, any history of litigation / arbitration awarded against the Applicant or any of its constituents or financial failure due to bankruptcy etc. C. been debarred by Air India or its subsidiaries as on the date of submission of the bid. D. Litigation History E. Involved in corrupt and fraudulent practices as mentioned herein below. 19

20 5. Documents to be attached with the Technical Bid To be qualified for award of the Contract, applicants/bidders shall provide evidence satisfactory to the Airline of their capability and adequacy of resources to carry out the respective contracts effectively. Technical Bids shall include the following documentation and information on the relevant information forms attached with the Technical Bid Document: 1. Integrity pact duly signed and attached in Annexure A. 2. Photograph of interiors and exterior of the office. Attach photographs/blue print of the exterior and interior of your existing office. The name of the Bidder/Applicant should be clearly visible in the photograph. 3. Copies of Certificate of Incorporation, Memorandum /Article of Association/ Registration Certificate of the organization, copies of original documents defining the constitution of or legal status, place of registration and principal place of business. 4. Power of attorney of the signatory of the Bid to commit the Applicant /Bidder. 5. Affidavit confirming that all the information furnished by the applicant/bidder in the bid are true and correct and the Bidder binds himself with all the stipulations of the bidding document, including provision of adequate equipment, personnel and other resources required and agrees to augment them, if found necessary. 6. Performance in Works of a similar nature and complexity over the last five years, and details of other work in hand and contractual commitments. 7. Total annual turnover NPR in the business as GSA expressed in each of the last Three years immediately preceding the date of this Tender duly certified and verified by applicable authority. 8. Reports on the financial standing of the applicant/ bidder including profit and loss statements, balance sheets and auditor s reports for the past three years immediately preceding the date of this Tender, and an estimated financial projection for the next two years. Consolidated financial statement of the group is not required. The financial statements should be a standalone financials of the Applicant entity. 9. Bankers and bank account details. Letter from the bank (on its letter head and bearing the common seal of the bank) with details of bank accounts of the Bidder/Applicant. 10. Earnest Money Deposit in form of Bankers Cheque for NPR ( Nepal Rupee Five Hundred Thousand only) in favor of Air India Limited and payable at Kathmandu, Nepal. 11. Confirmation letter on the official letter head under the Bidder s/applicant s seal, confirming that applicable local laws of your country of incorporation/registration entitle you to represent a foreign Airline. 12. Confirmation letter on the official letter under the Bidder s/applicant s seal confirming that no partners/officers/directors/employees having authorization to act and sign on behalf of your company/ organization have been involved in bankruptcy proceedings in the applicable jurisdiction. 13. Self Indemnification of the Official letter of the bidder as per the attached sample format. 20

21 6. Cost of Bidding The Bidder/Applicant shall bear all costs associated with the preparation and submission of its bid and AI will in no case be responsible or liable for those costs, regardless of the outcome of bidding and AI is not liable for any financial obligation, whatsoever. 7. Amendment and Clarification of Tender Documents A. Amendment of Bidding Documents 1. At any time prior to the deadline for submission of bids, AI may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective Bidder, amend the bidding documents by issuing Addendum within the specific time limit. 2. Any Addendum thus issued shall be part of the bidding documents and will be hosted on Air India s website. Advertisement in Nepal (from where the bids have been invited with regard to this Tender) will be released in the newspapers in Nepal. 3. To afford prospective Bidders/Applicants reasonable time in which to take an Addendum into account in preparing their bids, AI may extend as necessary the deadline for submission of bids, without assigning any reasons, whatsoever. B. Clarification of Tender Documents 1. A Bidder requiring any clarification of the Tender documents may notify Air India in writing at the given address: Country Manager Air India Limited, Hattisar Kathmandu Nepal Phone: FAX: cm.nepal@airindia.in 2. AI will endeavor to provide clarification, if justifiable, and in connection to the Bid requirement within 3 working days after the date specified in the bid document for seeking clarifications on the Tender Document. 3. Tender document will be hosted in Air India website. 4. Bidders are required to check the Air India website for the responses from Air India. 5. AI reserves the right not to disclose or clarify any points or issues which AI considers has no relevance to the Tender. ********************************************************************** 21

22 8. FINANCIAL BID Financial bid document is only two page (next page). It should be sealed in a separate envelope specifying Financial Bid. No other documents need to be attached with financial bid. All Supporting documents are to be attached with the technical bid. 22

23 Name of the Applicant: 8. Financial Bid Dated: A. Selection Criteria ( Financial Bid ): That the financial bid of only those Applicants shall be considered who meet all the eligibility criteria. The applicant who quotes highest Committed business(total turnover) in the bid- H1, would be selected. If there are two or more than two applicants giving the exact same highest bid, then re-bid will be invited from such applicants only. The re-bid figure should be equal or higher than the original bid. The Bidder/Applicant needs to quote only one figure in the Committed Business Column /Assured Revenue to Air India (in US Dollar ) column placed below. The quote should be covered with a transparent adhesive tape: Assured Revenue to Air India committed by GSA annually Please fill the amount in Figure and words and cover with transparent adhesive tape Estimated Annual Available Cargo Capacity and current rate per Kg. in NPR Benchmark/Minimum Assured Annual Revenue on total capacity deployed by AI. with financial coverage (Deposit/ Bank Guarantee ) equivalent to two months sale over & above other BG. NPR (in Figures and words)local Currency(NPR) - Sector Volume/Flight (Kgs.) Current Rate in NPR/Kg. KTM -DEL 3000Kg NPR 33/Kg KTM-CCU 2500 Kg NPR 33/Kg *Prevailing Rate above is basic freight+ surcharge. All other charges including AWB fee, statistical charge and/or any other charges would be retained by AI. NPR Rs. 53,539,200=00(NPR Five Three Million Five Hundred Thirty Nine Thousand Two Hundred) equivalent to US Dollar US$ ( US $ 1=NPR ) /INR Rs. 3,34,65,683.50( NPR 1=INR 0.63) Assured Revenue would be worked out quarterly. Any deficit/ shortfall is payable by GSA according to the assured /Committed Revenue. Authorized Signature Seal of the Company (PLEASE SIGN THE NEXT PAGE OF THE FINANCIAL BID) 23

24 Terms & Conditions of the Financial Bid a. GSA would be paid Commission as per the following revenue achievement brackets: Revenue Slab ORC % Slab as per the Minimum Assured Revenue Upto 60% 1.50 % Upto NPR Above 60 upto 70% 2.00% Above NPR upto NPR Above 70% 2.50% Above NPR upto upto 80% NPR Above 80% 3.00% Above NPR b. In case of capacity reduction or induction by Air India, the assured revenue would be proportionately adjusted and the same would be binding on the GSA. c. The Successful Bidder would be required to submit a Separate Security Deposit /Bank Guarantee equivalent to two months of Minimum Assured Revenue/Business as submitted in the Financial Bid.This Security Deposit/Bank Guarantee would be for settlement of the deficit, if any, of the actual revenue vis-à-vis the Assured Revenue d. Relaxation The appointed GSA will have a leverage upto 80%(Eighty Percent) materialization with no penalty on its commitment /assured revenue for a period of 3 months(three months) from the date of commencement as GSA. e. The applicable commission in not accruable/payable on the cargo such as Interline sales, Mail revenue, Insurance, Taxes, Airport Levies, C.O.D, COMAT, and Embassy & Government Sales. These will not be included in the assured Revenue/Business Authorized Signature Seal of the Company 24

25 A. Language of Bid 9. Preparation of Bids The Bid, and all correspondence and documents related to the Bid exchanged by the Bidder/Applicant and AI shall be written in the English language. Supporting documents and printed literature furnished by the Bidder/Applicant may be in another language provided they are accompanied by an authenticated translation from appropriate authority of the relevant passages in English, in which case, for purposes of interpretation of the Bid, the English translation shall prevail. B. Documents Comprising the Bid The bids should be submitted in two parts, which comprise the following documents: Part-I Technical Bid i) The basic mandatory information and eligibility criteria (5. Technical Bid) as listed in clause1,2 and 3 with all necessary supporting documents/ material / information required to be submitted in accordance with the Technical Bid and as specified in the technical bid document. Further all documents mentioned in clause 5 of the Technical Bid, are to be submitted with the Technical Bid. ii) iii) iv) All pages should be numbered serially electronically, along with an index of submissions. No overwriting or cutting/usage of white correction ink would be accepted in the Bid Document. The Technical Bid shall be hard bound/ Spiral Bound and all pages serially electronically numbered. Part-II Financial Bid A. Financial Bid is as per attached format (Two Page) to be filled and submitted in a separate sealed envelope. Please sign & submit both the pages. The figure (to be mentioned in words and figures) needs to be filled in and signed. No other documents to be attached to the financial bid. B. Each Financial Bid shall be separately sealed and marked in accordance with the sealing and marking instruction. C. The financial bid shall be quoted by the Bidder/Applicant in NPR currency. D. All figures quoted in the Financial Bids shall be mentioned in numbers and words and in case of discrepancy between the two, the amount mentioned in words shall prevail. E. The figures quoted in financial bid should be covered with a transparent adhesive tape. 25

26 Format and Signing of Bid A. The Bids shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to sign on behalf of the Bidder. All pages of the Technical Bid and Financial Bid shall be initialed by the person or persons signing the Bid along with company seal. All entries or amendments shall be initialed by the person or persons signing the Bid. B. The Bid shall contain no alterations, omissions or additions, except those to comply with instructions issued by AI, or as necessary to correct errors made by the Bidder, in which case all such corrections shall be initialed by the person or persons signing the Bid. C. All witnesses and sureties shall be persons of status and probity and their full names, occupations and addresses shall be printed below their signatures. Submission of Bids A. Sealing and Marking of Bids 1) The applicant/ bidder shall submit the bid in two parts, the Technical Bid and the Financial Bid. Each part of the bid shall be sealed in separate envelopes and the two sealed envelopes shall be sealed in an outer envelope. The Bid envelopes shall be superscribed in bold marked as follows: (a) Outer Envelope: Technical and Financial Bid for - Cargo General Sales Agent, Nepal Mention Tender Reference and date. THIS ENVELOPE SHOULD HAVE NAME, ADDRESS, , TELEPHONE NUMBER OF THE APPLICANT/ BIDDER PROMINENTLY 1DISPLAYED. (b) (c) Inner Envelope, Technical Bid: Technical Bid for - Cargo General Sales Agent, Nepal Mention Tender Ref No. and date release date. Inner Envelope, Financial Bid: Financial Bid for - Cargo General Sales Agent, Nepal Mention Tender Ref No. and date release date. 2) ALL THE THREE ENVELOPES SHOULD HAVE NAME OF THE APPLICANT/BIDDER PROMINENTLY DISPALYED 26

27 3) The outer envelopes shall: be addressed to the Airline at the following address: Country Manager Air India Limited, Hattisar Kathmandu Nepal Phone: FAX: ) If the outer and inner envelopes are not sealed and marked as above, the Airline will assume no responsibility for the misplacement or premature opening of the Technical Bid and Financial Bid and consequent losses, if any, suffered by the applicant/ bidders. Bids submitted by fax, telex, telegram or shall not be entertained and shall be rejected. B. Deadline for Submission of Bids Bids must be received by the Airline at the address specified above not later than the time and date specified in the Invitation for Bid. In the event of the specified date of submission of bids being declared a holiday for Airline, the Bids will be received up to the appointed time on next working day. The Airline may, at its discretion, extend the deadline for submission of bids by issuing an amendment, in which case all rights and obligations of the Airline and the applicants/ bidders previously subject to the original deadline will thereafter be subject to the deadline as extended. C. Late Bids Any bid received by the Airline after the deadline for submission of bids will be returned unopened to the applicant/bidder. Bid Opening and Evaluation The date and time for opening of the Bid would be communicated through as per the given by all the applicants on the envelope. First the Technical Bid would be opened and evaluated based on the prescribed qualifications criteria and requirements, followed by opening of Financial Bid. Financial Bid of, technically qualified bidders only will be opened. No queries from the bidders as regards the status of evaluation would be entertained. 27

28 10. Award of Contract A. Award As per provisions and criteria of this Tender, AI will award the Contract to the Bidder who has offered highest Assured Revenue/Business for the period of Contract. B. Notification of Award Prior to expiration of the period of bid validity, AI will notify the Successful Bidder by that its bid has been accepted. The notification of award will constitute the formation of the Contract, subject to furnishing of a Financial Security (Cash Deposit/Bank Guarantee) for Revenue Assured, in accordance with the provisions as mentioned herein. C. Security Deposit / Bank Guarantee (i) Once a Bidder has been declared as the Successful/Qualified Bidder and has been shortlisted as per the process, the Successful Bidder/Applicant will have to submit a Security Deposit of equivalent of 45 days sale based on assured revenue to Air India in NPR for the entire period of contract, which can be annually reviewed and renewed, if required. The Security Deposit can be submitted in the form of Bank Guarantee, within 10 (Ten) working days or otherwise as communicated, on issue of letter of intent or immediately on the day of signing of Contract. This Security Deposit amount shall be forfeited in full, in case the Successful Bidder backs out or they fail to operationalize the Contract within 30 (thirty) days or as stipulated on the execution of the same. (ii) The Successful Bidder would be required to submit a Separate Security Deposit /Bank Guarantee equivalent to two months of Minimum Assured Revenue/Business as submitted in the Financial Bid.This Security Deposit/Bank Guarantee would be for settlement of the deficit, if any, of the actual revenue vis-à-vis the Assured Revenue. Rate / Freight Charges The minimum rate/ Freight Charges would be given & Fixed and would continue to be determined by Air India based on the market parameters /information and other conditions including trend of demand & supply. The GSA is liable to pay Air India for the total sale made on behalf of Air India. D. Signing of Agreement (a) The Applicant/Bidder who is qualified and selected by the Airline in accordance with the Tender Documents shall enter into a definitive agreement with the Airline in the form attached as Annexure B (Draft) for Air India. However the Successful Bidder/Applicant is to note that the said GSA Agreement, may be varied, in accordance with the operational requirements and policies of AI, and also to comply with any applicable laws, regulations etc., as may be stipulated by any applicable laws as applicable to AI. 28

29 (b) (c) (d) Within 30 days of the date of signing the Contract, the Successful Bidder shall, if required, have the same stamped and registered according to the applicable laws and return the same duly signed and executed on behalf of the Successful Bidder to AI. It is clarified that the bid of each applicant/ bidder constitutes its offer to enter into the Contract as above, read with the terms of the Tender Documents, and assured business/revenue as per quotation submitted in the Financial Bid. The scope of work to be performed by the Successful bidder for the Airline shall be as set forth in the Contract attached herewith in Annexure-B.(Draft) 11. Right to accept any Bid and Reject any or All Bids A. Notwithstanding anything stated above or elsewhere in the Tender Documents, the Airline reserves the right to accept or reject any bid and to annul the bidding process and reject all bids, at any time prior to award of contract, without the Airline thereby incurring any liability to the affected bidder or bidders or any obligation to inform the affected bidder or bidders of the grounds for the Airline s action. B. The Applicant / Bidder shall provide all the information sought under this Tender document. The Airline will evaluate only those bids that are received in the required formats and are complete in all respects. Incomplete and / or conditional bids shall be liable to rejection. C. The Airline reserves the right to reject any bid or offer and forfeit the EMD (as defined above) if: (a) (b) at any time a material misrepresentation is made or uncovered, or any ambiguity, non-clarity and/or apparent mistake is/are determined by the Airline. Such misrepresentation/improper response shall lead to the disqualification of the Applicant / Bidder. D. Save and except as provided in this tender document, the Airline shall not entertain any correspondence with any applicant / bidder in relation to the acceptance or rejection of any bid. 12. Undertaking by the Bidder A. It shall be deemed that by submitting the bid, the Applicant /Bidder has: i. made a complete and careful examination of the bid document; ii. received all relevant information requested from the Airline; iii. accepted the risk of inadequacy, error or mistake in the information 29

30 provided in the bid document or furnished by or on behalf of the Airline; and iv. Agreed to be bound by the undertakings provided by it under and in terms hereof. Indemnity It shall be deemed that by submitting the bid, the Applicant/ Bidder agrees and releases the Airline, its employees, agents and advisers, irrevocably, unconditionally, fully and finally from any and all liability for claims, losses, damages, costs, expenses or liabilities in any way related to or arising from the exercise of any rights and / or performance of any obligations hereunder and/ or in connection with the bidding process, to the fullest extent permitted by applicable law, and waives any and all rights and / or claims it may have in this respect, whether actual or contingent, whether present or in future. Modification and Withdrawal of Bids A. The Applicant / Bidder may modify, substitute or withdraw its bid after submission, provided that written notice of the modification, substitution or withdrawal is received by the Airline prior to last date of submission of bid. No bid shall be modified, substituted or withdrawn by the applicant / bidder on or after the last date of submission of bid. B. The modification, substitution or withdrawal notice shall be prepared, sealed, marked, and delivered in accordance in this document with the envelopes being additionally marked MODIFICATION, SUBSTITUTION or WITHDRAWAL, as appropriate. C. Any alteration / modification in the bid or additional information supplied subsequent to the last date of submission of bid, unless the same has been expressly sought for by the Airline, shall be disregarded. D. Bids for which a notice of withdrawal has been submitted in accordance with this clause above shall not be opened by the Airline. E. Withdrawal of a Bid during the interval between the deadline for submission of Bids and the expiration of the period of Bid Validity specified herein result in the forfeiture of the EMD. Applicants/bidders are advised that pre-qualification of applicants will be entirely at the discretion of the Airline. Applicants will be deemed to have understood and agreed that no explanation or justification on any aspect of the bidding process or selection will be given by the Airline. Property of the Airline 30

31 All documents and other information supplied by the Airline or submitted by any applicant / bidder pursuant to this tender document shall remain or become the property of the Airline. Applicants / bidders are to treat all information as obtained by it pursuant to this Tender as strictly confidential and shall not use it for any purpose other than for preparation and submission of their bids. The Airline will not return any bid or any information provided along therewith. Termination of the Contract In the event of default or breach of any condition of the Contract by the Successful Bidder, and as per the conditions mentioned in the Contract, Air India reserves the right to terminate the Contract as per the provisions mentioned and to claim damages from the Successful Bidder, and also reserves the right to award the contract to another third party at the cost and risk of the Successful Bidder. Price negotiation As it is not the general norm for Air India to carry out price negotiations following evaluation of the Financial Bid, the applicants / bidders are advised to submit their best and final quotes in response to the Tender document. Air India however, reserves the right to carry out negotiations in exceptional cases with the Successful Bidder. Validity of prices The Minimum Assured Business/Revenue quoted in the Financial Bid shall remain as a bench-mark of the contract. Corrupt or Fraudulent Practices The Airline will reject a proposal for award if he determines that the Bidder recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question. The Airline will declare the firm ineligible, either indefinitely or for a stated period of time, to be awarded a contract by Air India Limited if it at any time determines that the firm has engaged in corrupt or fraudulent practices in competing for the Contract, or during execution. AI may also declare a bidder ineligible either indefinitely or for a stated period of time, to be awarded a Contract by if it at any time determines that the bidder has engaged in corrupt or fraudulent practices in competing for the Contract, or during execution, or has violated any of the terms of the tender process being conducted under this Bid Document. (a) corrupt practice means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves and/or those close to them, or induce other to do so, by misusing the position in which they are placed, and it includes the offering, giving, receiving, or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution; and 31