PAKISTAN INTERNATIONAL AIRLINES

PAKISTAN INTERNATIONAL AIRLINES Hiring of Firm for Ex-Pakistan Cargo Hard Block Capacity Selling Hiring of Firmfor Ex-Pakistan Cargo Hard Capacity Selling A) Submissionand preparation of proposal Pakistan International Airlines invites the proposals from well experienced strategic approach firms for the brand consultancy services. 1. All firms are required to send proposals to General Manager Procurement Management, PIA Procurement &Logistics Building JIAP, and Karachi latest by 26 March, 2018 till 10:30Hrs. The proposal may be dropped in the tender box marked as Hiring of Firm for Ex-Pakistan Cargo Hard Capacity Selling placed at the entranceofpiaprocurement&logisticsbuildinglatestby10:30hoursonthespecific date. 2. The proposal submitted shall comprise of a two envelops, marked as CompanyProfile (financial and Technical evaluation) and Financial proposal. The company profile shall comprise offive letters 1.experience letter 2.HR record 3.Fianacial details 4. Clientage/project details 5.Litigation record. The financial proposal of those firms, who will qualify the phase 1 and 2, will be opened only for final selection. 3. All firms are required to submit the profile of the company with documents as mentioned in Terms of reference (TORs) which can be downloaded from PIA website or undersigned before the closing given date and time. 4. All firmsare required to submit a PayOrderof Rs.3000/-astenderfees along with the Proposal. 5. TheproposalshouldbeaccompaniedaPayOrdere q u i v a l e n t t o 2 % o f t h e b i d p r i c e Payable i n f a v o r o f PAKISTANINTERNATIONALAIRLINESasinterestfreeEarnestMoney(Refundable). EarnestMoneyin anyothershapeshallnotbeaccepted. 6. After screening of the receiveddocuments, presentation topic will be given to successful bidders of phase 1. Venue and timing will be communicated to the bidders in advance. Firm will be selected on basis of evaluation combined criteria of Hiring in first and second phase as mentioned in detail. 7. Prop osals receiv ed afterstipulateddate&timeshallnotbeconsidered. PIA will notberesponsibleforpostaldelays. ThedecisionofGeneralManagerProcurement&Logisticsin this respect shall be final and binding. Documents sent by e-mail will not be accepted. Firms failing to provide the requiredinformation will be disregarded. PIA has complete right to disqualify any applicant at any stage if it is being found as blacklisted, delayed application submission, false information and in any other activity against the corporation. 8. The successfulcontractoruponawardofcontractwillberequiredtofurnish security deposit o f 5 % o f t h e t o t a l b i d a m o u n t inshapeofpayorder. TheEarnestMoneyalreadyheldcanbe converted into SecurityDeposit and balanceamount if any shall be deposited as above. 9. Contract will be awarded for a period of three years based on probation period of 3 months. Yours truly, General Manager Procurement Supply Chain Management Tel: 021 9904 3081, 9904 5379 Email: dgmpc@piac.aero, contract.administration@piac.aero, haider.solangi@piac.aero Page 1 of 7

Hiring of Firm for Ex-Pakistan Cargo Hard Capacity Selling B. Introduction PIA is national flag carrier of Pakistan, serves approx. 27 international destinations. PIA has a dedicated Cargo Sales deputed at various domestic stations that administers the Ex-Pakistan cargo sales through cargo agents but for the optimal utilization of cargo space available in Ex- Pakistan flights PIA is looking for leading IATA approved Cargo Agent or other firm or company as Marketing Party for Ex-Pakistan Cargo Hard Block Capacity selling C.Scope of Work 1 PIA will allocatespace to a selected firm on hard block basis on each PIA flight specified as under whether such space is used or not. PIA s utilization of the unallocated space will be at its sole discretion for non-revenue shipments. Firm would have to transport on a priority basis PIA aircrafts AOG parts and government shipments. 2 The selected firm, at its own expense, tender freight for carriage on PIA flights directly or through its IATA approved forwarding agents to PIA s cargo export premises after custom/other agencies clearance. PIA shall only be responsible for transportation of cargo from its Ex-Pakistan international gateways to its international online airports only. Transportation of cargo from domestic gateway to Ex-Pakistan international gateway shall be responsibility of selected firm. 3 Cargo to be transported shall be subject to PIA s general conditions of carriage and safety, security, customs and any operational applicable laws and procedures. 4 Selected firm to ensure that proper information is being conveyed to the cargo agent of the booking that any cargo is properly packed in quality packages which are free of any leakage and can sustain air transportation. 5 Selected firm is obliged to utilize the cargo reservation system of PIA (Cargo spot) and execute the entries as required by PIA. 6 Selected firm to follow fortnightly sales reporting and settlement framework. 7 Any other supplementary task assigned to the selected firm by PIA Management. 8 Late payment surcharge @ 15% per annum will be charged on the basis of number of days in default. 9 For calculation purposes, the minimum average weight of a pallet will be considered as 2000 Kg and of an LD3 as 1000 Kg. Minimum weight of 1000 Kg will be considered on narrow bodied aircrafts. 10 In case the destination of cargo shipments is offline station of PIA, the transfer expenses to other carrier and onward carriage expenses to final destination will be borne by selected firm. 11 For any new flight schedule on new routes, the available weight per aircraft shall be as per schedule maintained in the agreement. However the charges/rates of carriage will have to be mutually decided and recorded as addendum annexure to the agreement. 12 All handling cost at destination will be paid by the selected firm. 13 Fixed agreement term of 3 years with annual guaranteed increase in revenue of 5%. Page 2 of 7

14 Agreement is weight/volume based and not based on ULD s. Available cargo can be accommodated in any of three aircraft holds (Forward/Mid/Bulk hold). 15 Any disputed claims raised by Select Firm will be discussed /adjusted at the time of quarterly performance review meeting. 16 Before quarterly performance review meeting for disputed claims Selected Firm will not hold / delay the payment cycle as per the agreed schedule. 17 The Selected Firm is not entitled for bank mandate if CASS (Cargo Accounts Settlement System) Authorization is given to Selected Firm. HBCA From Pakistan International Online Destination Frequency per week Page 3 of 7 Aircraft Type Available Capacity per Flight Kg Available Tonnage Per Annum KHI/LHE/ISB YYZ 4 B777 10000 2,080 LHE/ISB MAN 9 B772-B773 12000 5,616 KHI/LHE/ISB LHR 10 B772-B773 12000 6,240 ISB BHX 3 B772-B773 12000 1,872 LHE/ISB CDG* 4 B772-B773 6000 1,248 LHE/ISB MXP* 2 B772-B773 6000 624 LHE/ISB BCN* 2 B772-B773 6000 624 LHE/ISB CPH* 2 B772-B773 6000 624 LHE/ISB OSL* 2 B772-B773 6000 624 KHI/LHE/ISB/PEW/SKT/LYP/MUX JED 28 B772-B773 12000 A320 1000 12,896 KHI/LHE/ISB/SKT RUH 10 B772-B773 12000 A320 1000 3,380 KHI/LHE/ISB/LYP/MUX MED 8 B772-B773 12000 A320 1000 KHI/LHE/ISB/SKT DMM 8 A320 1000 416 KHI/LHE/ISB/PEW DXB 34 A320 1000 1,768 KHI/LHE/ISB/PEW AUH 18 A320 1000 936 PEW DOH 2 A320 1000 104 KHI/LHE/ISB/PEW/SKT MCT 8 A320 1000 416 KHI NJF 2 A320 1000 104 LHE/ISB PEK* 2 B772-B773 6000 624 LHE/ISB NRT* 2 B772-B773 6000 624 KHI KUL 4 773 12000 2,496 KHI BKK 2 A320 1000 104 KHI DAC 2 A320 1000 104 LHE DEL 2 AT7 100 10.4 ISB KBL 5 AT5 100 26 Turbet SHJ 2 ATR 100 10.4 2,756 Total 46,327

* In respect of any combination flight PIA HQ has agreed and is instructed to only load 50% of the total available capacity to the second point of entry. For the avoidance of doubt an example : on-load ex Pakistan for 6 Pallets positions is to be equitably allotted like 3 Pallets for MIL and 3 Pallets for CDG * Flight frequency and tonnage may vary according to flight schedule. D. Requirements of Applicants: i. Applicant should have a valid local registration in Pakistan in conformity with local laws and requirements through own branch offices or by partnership (e.g. sub-gssa), to be specified in respect of each online point (city) with regards to whether it is being covered by own local branch office or by an office in Partnership/Joint Venture ii. iii. iv. No involvement of owners, directors, shareholders or any officers in any default and/or bankruptcy proceedings; nor any financial interest or position of management in any defaulted IATA or GSA/GSSA agency or any other firm or company. Expertise and a minimum of a 5 years experience as an IATA approved Cargo Agent or other firm or company. Applicant who is working as a Cargo GSA of an airline in Pakistan will be preferred. The applicant must provide three (3) years audited accounts from a well reputed and recognized audit firm. v. Reputable quality of sales activity performed by trained staff with broad international experience in selling & booking, including but not limited to e-freight AWB, Basic Cargo and DGR license etc vi. vii. viii. ix. The firm must be registered with FBR or SRB with valid NTN number. The firm must have adequate size, structure, staffing, facilities and financial standing to provide comprehensive services. (Details mentioned in Evaluation Criteria). Companies with incomplete documents will not be considered for further Hiring process Applicant to submit provision of a bank guarantee covering 45 days of full block space sale on agreed rates to be delivered to PIA within one month prior to the commencement of agreement (the contract shall come in effect within 30 days of signing of agreement only after provision of Bank Guarantee equivalent 45 days of agreed rates) which shall be irrevocable and remain in full force unless PIA notification to issuer bank. x. Advance payment equal to the 45 days amount of agreed block space to be deposited into PIA account within one month after execution agreement and to be adjusted on monthly rollover basis. xi. The applicant must provide three (3) years audited accounts from a well reputed and recognized audit firm. E. Selection Procedure: 1. Bidders will submit the documents containing two Sealed separate envelops ( Financial + Technical) 2. PIA will evaluate Financial for 30 Marks and Technical for 20 Marks. 3. PIA mayvisit/meet withthe Firm (if necessary) at their offices for confirmation of the company office and its profile. 4. Minimum 70 and to qualify minimum 30 Marks to be secured from point a to d (As per evaluationcriteria below). 5. Selection of Three (3) bidders. 6. Opening of Financial proposals of Three Selected bidders 7. Selection of One Highest Bidder 8. Issuance of Letter of Intent to first bidder of lowest financial proposal 9. Signing of Formal Contract F. Selection Criteria All applications will be evaluated as per the Evaluation Criteria in following categories Evaluation Criteria Points for on PIA International Routes from Pakistan Page 4 of 7

1) Financial Evaluation a) Financial Standing Shareholder s Equity in PKR 01 Million - 10 Million = 0.50 10 Million - 20 Million = 0.75 20 Million - 30 Million = 1.00 30 Million - 40 Million = 1.25 40 Million - 50 Million = 1.50 50 Million- 60 Million = 1.75 60 Million+ = 2.00 o Current Ratios 0.00-0.49 = 0.25 0.50-0.99 = 0.50 1.00-1.49 = 0.75 1.50-1.99 = 1.00 2.00-2.49 = 1.25 2.50 + = 1.50 o Acid Test Ratios 0.00-0.49 = 0.25 0.50-0.99 = 0.50 1.00-1.49 = 0.75 1.50-1.99 = 1.00 2.00-2.49 = 1.25 2.50 + = 1.50 Applicants with overall financial rating of 3.00 on their audited accounts are preferable b) Annual Turnover USD 80 Million and above 25 USD 70 Million and above 20 USD 60 Million & above 15 USD 50 Million & above 10 Below USD 40 Million 05 2) Technical Evaluation a) Office Location Own set up on all online stations 5 Partner/JV setup on all online stations 4 Own setup on major online station (KHI/LHE/ISB/PEW) 3 Partner/JV setup on major online stations (KHI/LHE/ISB/PEW) 2 Own/Partner/JV setup in only one or two major stations 1 b) Staff Experience Own staff trained on all locations with Cargo Basic & DGR Licenses 5 Own trained Staff on at least one location with Cargo Basic & DGR Licenses while other locations manned by partner/jv trained staff 4 Partner/JV trained staff on all locations with Cargo Basic & DGR Licenses 3 One location where own or partner staff is not trained 2 No staff (own/partner) trained on any location 1 c) Company Experience Page 5 of 7

Nine to Ten years experience in cargo sales as IATA accredited agent 5 Seven to Eight years experience in cargo sales as IATA accredited agent 4 More than five years experience in cargo sales as IATA accredited agent 3 Five years experience in Cargo Sales as IATA accredited agent 2 Less than Five Years experience in Cargo Sales 1 d) Quality of experience of Applicant Dealing as GSA with 04 or more airlines 5 Dealing as GSA with 03 airlines 4 Dealing as GSA with 02 airlines 3 Dealing as GSA with 01 airline 2 Not dealing as GSA with any airline 1 3) Financial Proposal Highest bidder to be rated as 50 Second bidder highest 40 Lowest bidder 30 Any offer below top three will not be considered Total Points: 100 Qualifying Points: To qualify minimum 30 points to be secured from 1 to 2 Three(3) Bidders with highest marks (out of 50 marks for both phase Financialand Technical) will be qualified for evaluation of financial proposals while only one bidder offering highest financial proposal will be selected as PIA Brand Consultant for a period of three year. The financial Proposals may be submitted in separate envelop along with profile and technical proposals Page 6 of 7

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