airline allied services limited - mmd.airindia.co.inmmd.airindia.co.in/aimmd/tender/tender atr...

of 69

Airline Allied Services Limited

Tender

for

Appointment of Service Provider(s)

to Provide Integrated Support

for

ATR 72-212A (600 version)

Aircraft Components

on Lease Basis

of 69

DISCLAIMER

The information contained in this tender document (the “Tender”) or subsequently provided to

Bidder(s) whether verbally or in documentary or any other form by or on behalf of AASL, is under the

terms and conditions set out in this Tender and such other terms and conditions subject to which such

information is provided.

This Tender is neither an agreement nor an invitation by AASL to the Bidder(s) or any other person.

The purpose of this Tender is to provide interested parties with information that may be useful to them

in making their technical and financial offers pursuant to this Tender. Each Bidder should, therefore,

conduct its own investigations and analysis and should check the accuracy, adequacy, correctness,

reliability and completeness of the assumptions, assessments, statements and information contained

in this Tender and obtain independent advice from appropriate sources.

AASL makes no representation or warranty and shall have no liability to any person, including any

Bidder under any law, statute, rules or regulations or tort, principles of restitution or unjust enrichment

or otherwise for any loss, damages, cost or expense which may arise from or be incurred or suffered

on account of anything contained in this Tender or otherwise, including the accuracy, adequacy,

correctness, completeness or reliability of this Tender and any assessment, assumption, statement or

information contained therein or deemed to form part of this Tender or arising in any way in the Tender

process.

AASL also accepts no liability of any nature whether resulting from negligence or otherwise

howsoever caused arising from reliance of any Bidder upon the statements contained in this Tender.

AASL may in its absolute discretion, but without being under any obligation to do so, update, amend

or supplement the information, assessment or assumptions contained in this Tender. AASL reserves

the right to accept or reject in whole or in part, any or all of the Bids without assigning any reason(s)

whatsoever.

Any information / documents including information / documents pertaining to this Tender or

subsequently provided to Bidder(s) and/or the Selected Bidder and information / documents relating to

the Tender process; the disclosure of which is prejudicial and/or detrimental to, or endangers, the

provision / implementation of Public Relation services to be provided to AASL pursuant to this Tender

is not subject to disclosure as public information/ documents.

of 69

Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) aircraft Components on Lease basis

INTRODUCTION AND GENERAL DETAILS

Tender Ref: AASL/ATR72-600/TENDER-2016/076 19th February, 2016


1. INTRODUCTION

Airline Allied Service Ltd. (hereinafter referred to as “AASL” or “Alliance Air”), having its

registered office at Old Lufthansa Hanger Building (Adjacent to ED-NR office), IGI Airport, Terminal-1, New Delhi 110037, incorporated under Indian Companies Act 1956 and a wholly owned subsidiary of Air India Ltd., the national carrier airline of India which is fully owned by the Government of India under administrative control of Ministry of Civil Aviation, operates with the brand “Air India Regional” operating domestic flights within India.

AASL is currently having a combined fleet of 11 aircraft. AASL has a fleet of five new ATR 72-212A (600 version) aircraft, which may be increased from time to time. AASL is already in the process of inducting 3 additional new ATR 72-212A (600 version) aircraft within next 3 months (collectively referred to as the “Aircraft”).

2. PURPOSE OF TENDER

Some of the components fitted on the Aircraft are required to be placed at AASL premises as home base items, (hereinafter referred to as the “Components”), to fulfill the scheduled/unscheduled requirements.

The purpose of this document is to present the requirements of AASL and to invite

Technical and Commercial proposals under the two-bid tender process, from Bidders who specialize in Aircraft parts supply and support, for selection of the Service Provider(s), which shall be responsible to offer comprehensive support for such of the identified “Components” of the Aircraft, as per the terms and conditions mentioned at Annexure ‘B’ (hereinafter referred to as the “Service Provider(s)”). The core intent of the appointment of the Service Provider(s) is to provide integrated support for the Components on lease basis, is to ensure the availability of such identified “Components” in the desired quantity, at all times including the scheduled/unscheduled requirements of AASL.

The proposed contract shall be effective from the date of signing of contract, for

placement of the “Components” in AASL premises and its management thereof and the term of the proposed contract shall be 10 years, extendable by another 2 years thereafter at the sole discretion of AASL and subject to satisfactory performance of the Service Provider(s)during the contract period.

of 69

Offers are invited, under the Two Bid System, from the interested parties who have the

competence to provide a total integrated (including logistic support) support for the components detailed herein. Interested Bidders may submit their offer, in two separate sealed envelopes, as is required of the two bid tender system.

This Tender is in a two bid system i.e. 1- Technical Bid and 2- Commercial Bid. The first envelope should

be super-scribed with the Tender reference number and be marked as “Technical Bid - Tender for

Appointment of Service Provider(s) to Provide Integrated Support for ATR 72-212A (600 version) Aircraft Components on Lease Basis” and should contain only the technical details. The second envelope

should be super-scribed with the Tender reference number and be marked as “Commercial Bid - Tender for

appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) aircraft

Components on Lease basis” and should contain the Commercial offer only. The Bidders are required to submit their Bids in two different sealed / closed envelopes, clearly identifiable, as follows:

The above two envelopes should be submitted in another Master Envelope in sealed / closed condition.

The Master envelope should be super-scribed with Tender reference no. AASL/ATR72-600/TENDER-2016/076

dated 19th Feb, 2016, with the Tender name mentioned as “Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis” and the closing date of the Tender, along with the Bidder’s company name, e-mail ID and Contact Person's name.

The Master Envelope should be sealed / closed, addressed and submitted at the following address on or before the closing date and time:

Executive Director (Engg.)

Alliance Air

Old Lufthansa Hanger Building (Adjacent to ED-NR office),

IGI Airport, Terminal-1, New Delhi 110037

Tel: + 91 11 25675654

E-mail: [email protected]

Following is the schedule for the Tender:

S. No Contents Marking on the envelope

1

Technical Bid – Covering Letter (Annexure E) with responses consisting of Annexures – F, G, J & K, as well as the EMD.

Technical Bid - Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis. Ref. No: AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016

2

Commercial Bid – Covering Letter (Annexure H) with response consisting of Annexure – I

Commercial Bid - Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis. Ref. No: AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016

of 69

The Bidder’s queries, if any, may be addressed to the following officials by e-mail:

For Commercial Information: For Technical Information

The Bidders, or their authorized representatives, would be permitted to attend the opening of

the Bids. The representatives must carry a letter of authority from the authorized signatory of the Bidder, authorizing them to attend the Bid opening, failing which they will not be permitted to participate in the Bid opening process. The name(s) of the representative(s) may also preferably be directly sent to AASL in advance of the date of opening of the Bids by e-mail to the id: [email protected].

Amendments, corrigendum & clarifications, if any, to this Tender will be hosted on the web site of AIR INDIA (www.airindia.in) and no separate NIT would be issued in the newspapers or be communicated to the Bidders individually. AASL will also not intimate the Bidders individually of the same. The Bidders are, therefore, advised to visit the Air India web site regularly till the date of closing of the Tender. The last amendment, if any, will be hosted a minimum of seven days before the closing date of the Tender. However, any substratum changes as well as changes in due dates and extensions, if granted under this Tender, would be hosted on the Air India website/tenders page and the requisite NIT thereof would also be issued.

Bidders may note that the commercial offers of only those Bidders would be opened, who qualify in the technical evaluation exercise and the lowest evaluated commercial offer would be adjudged as the L-1 offer

Yours faithfully,

Executive Director (Engg.) Alliance Air

Mr. Jagdish Soni Executive Director (Engg) Airline Allied Services Ltd. Adjacent to Office of Executive Director (North), Air India Ltd., Domestic Terminal-1, IGI Airport, New Delhi – 110037 [email protected] Mobile No. : +919818648658 Phone: +911125675654

J S Dahiya AGM (MM) Air India Ltd. Safdarjung Airport New Delhi Phone +91 11 24623819

Email: [email protected]

Tender No & Date of Issue: AASL/ATR72-600/TENDER-2015/076 dated 19th Feb, 2016 Closing date / time of tender: 11th Mar, 2016 at 1400hrs Date and time of opening of Technical Bids: 11th Mar, 2016 at 1400hrs

http://www.airindia.in/

mailto:[email protected]

of 69

Tender Reference No: AASL/ATR72-600/TENDER-2016/076 Dated: 19th February, 2016

S. No Annexure Details Page Nos

1 - Introduction and General Details 3 – 5

2 - Table of contents 6

3 A Terms and conditions governing the Tender 7 - 19

4 B Pre-qualification (‘PQ’) criteria for the Tender 20 – 22

5 C Functional requirements for the Tender 23 - 27

6 D List of components for leased ATR 72-212A (600 VERSION) Aircraft

28 – 31

7 E Covering letter for submission of Technical Bid (On Bidder’s Letter Head)

32 – 33

8 F Company profile and Technical information (On Bidder’s Letter Head)

34 – 35

9 G Technical Bid Response – Bidder compliance to PQ criteria 36 – 38

10 H Covering letter for submission of Commercial (Price) Bid (On Bidder’s Letter Head)

39

11 I Commercial (Price) Bid (On Bidder’s Letter Head)

40 - 48

12 J Variance Statement (On Bidder’s Letter Head)

49

13 K Integrity Pact 50 – 69

Yours faithfully,



TABLE OF CONTENTS

of 69

Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis

TERMS AND CONDITIONS GOVERNING THE TENDER Annexure - A



Dear Sirs, 1. interested Bidders are requested to note the following important dates and events concerning

the Tender:

EVENTS DATES

Date of Tender 19th Feb, 2016

Last date of submission of Bids 11th Mar, 2016 upto 1400hrs.

Date of opening of Technical Bids 11th Mar, 2016 at 1400hrs.

The purpose of this document is to present the requirements of AASL and to invite

Technical and Commercial proposals under the two-bid tender process, from Bidders who specialize in Aircraft parts supply and support, for selection of the Service Provider(s), to offer comprehensive support for such of the identified Components of the Aircraft, as per the terms and conditions at Annexure ‘A’. The core intent of the appointment of the Service Provider(s) is to ensure the availability of identified Components in the desired quantity, at all times of scheduled/unscheduled requirements of AASL.

The proposed contract shall be effective from the date of signing of contract, for

placement of the “Components” in AASL premises and its management thereof and the term of the proposed contract shall be 10 years, duly extendable by another 2 years thereafter, subject to satisfactory performance during the contract period. The complete Tender document detailing the technical details and the proforma for submission of Technical and Commercial Bids can be downloaded from the link “Tenders” of the Air India website www.airindia.in

2. Submission of Bids: Sealed quotations are to be submitted in a Two-Bid system (Technical Bid and Commercial Bid separately) as per the following Details: 2.1 Technical Bid (Envelope – I):


of 69

Bidders are required to submit the Technical Bid in a sealed envelope (Envelope – I),super scribed on it “TECHNICAL BID for tender reference AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016,Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis”, the Tender name and the due date of the Tender. The Technical Bid envelope should also indicate the Bidders name and address for easy identification. The Technical Bids of the Bidders must contain the following:

Bidders’ response consisting of the Covering letter (Annexure-E), along with Annexures-F, G, J & K. Earnest Money Deposit (hereinafter referred to as “EMD”): The EMD of USD 5000 must be enclosed along with the Technical Bid only. The EMD is to be submitted by way of Wire Transfer / bank draft / pay order / banker’s cheque drawn in favour of “Airline Allied Services Limited”, payable at New Delhi. No other mode of payment is acceptable. In case EMD is not found attached, or not submitted in the mode specified, or a valid proof of exemption not submitted, such Bid shall be rejected as non-responsive.

Bidders are also required to submit the signed Integrity Pact document (Annexure-K), in agreement of all the conditions therein.

2.2 Commercial Bid (Envelope –II):

Bidders are required to submit the Commercial Bid in a sealed envelope (Envelope – II),super scribed on it “COMMERCIAL BID for tender reference AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016, Tender for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis”, the Tender name and the due date of the Tender. The Commercial Bid envelope should also indicate the Bidders name and address for easy identification. The Commercial Bid must conform to the following:

The Bidder is to submit their best and firm offers as per the format enclosed at Annexure-I. Rates should be strictly quoted in the format as given at Annexure-I and must be inclusive of all functional requirements mentioned at Annexure-C. Unconditional discounts, if any, should be clearly indicated, and would be applied to the quoted offer price during evaluation. Conditional discounts, if offered, will not be considered for evaluation purposes.

2.3 Final submission of the Bids:

of 69

THE TWO SEALED COVERS i.e. ONE SEALED COVER FOR THE TECHNICAL BID (ENVELOPE –I), AND ANOTHER SEALED COVER FOR THE COMMERCIAL BID (ENVELOPE –II) SHOULD BE FURTHER PLACED IN A SEALED MASTER ENVELOPE. MASTER ENVELOPE SHOULD BE SUPERSCRIBED WITH THE TENDER REFERENCE NO., TENDER NAME AND THE DUE DATE OF TENDER.THE BID ENVELOPE SHOULD ALSO INDICATE THE BIDDER’S NAME AND ADDRESS FOR EASY IDENTIFICATION. THE BIDDERS BID DOCUMENT SHOULD BE SUBMITTED AT THE FOLLOWING ADDRESS LATEST BY 1400 HRS ON 11th Mar, 2016.


Alliance Air Old Lufthansa Hanger Building (Adjacent to ED-NR office),

IGI Airport, Terminal-1, New Delhi 110037 Tel: + 91 11 25675654

E-mail: [email protected]

2.4 Contact Details for clarifications.

Bidders may ask for clarifications regarding details mentioned in this document via e-mails until three days prior to the close date of the Tender. Only those queries would be accepted which would be received by AASL through e-mails. The Bidders shall address such emails to the Executive Director (Engineering), AASL at: [email protected]

3. Bid Submission requirement, Tender Opening and the evaluation process:

The due date of opening of the Technical Bids has been fixed for 11th Mar, 2016 at 1400 hrs IST. On this designated due date and time of opening of Bids, i.e. 11th Mar, 2016, at 1400hrs. only the Technical Bids would be opened. The Bidders, or their authorized representatives (only one person), would be permitted to attend the opening of the Bids. The representative must carry a letter of authority from the authorized signatory, authorizing them to attend the Bid opening, failing which they will not be permitted to participate in the Bid opening process.

3.1. Bidders must submit both their Technical Bid and Commercial Bid response, through

signed HARD copy only, in sealed condition, by the due date and time.. In case the Commercial Bid and the Technical Bid are enclosed in the same envelope instead of in two separate sealed envelopes, the Bid shall be rejected. The Bids submitted through E-mail, Fax etc. will not be considered for evaluation.

3.2. On the date of opening of the Bids only the Technical Bids would be opened, and the

Commercial Bids would be kept in the custody of AASL in the same sealed covers as received from the Bidders.

3.3. The Bidders should sign on all pages of the Technical Bid and the Commercial Bid. All

the relevant pages of the Bids should be numbered as “page xx of xx”

of 69

3.4. The blank pages, if any, should be marked as “Intentionally left blank”. 3.5. The Technical Bid should not contain any indication of the price. In case an indication of

the price quoted is included in the Technical Bid, the quotation will be rejected without any reference to the Bidder. No correspondence will be entertained in this regard.

3.6. The price quoted should remain valid for acceptance for a minimum period of 120 days

from the date of opening of the Technical Bids. However the validity of the Bid must be extended as required, upon request from AASL to enable completion of the evaluation of the Bids and finalization of the successful Bidder.

3.7. The Bids should be neatly presented. Corrections, if any, should be duly authenticated

with full signature of the authorized person who is signing the Bid, failing which the Bid is liable to be rejected.

3.8. AASL reserves the right to accept / reject any / all Bids, in whole or in part, and/or annul

the Tender process, without assigning any reason(s) whatsoever or without any liability thereto.

3.9. AASL reserves the right to award the contract(s) to one or more successful Bidders. 3.10. Amendments, corrigendum & clarifications, if any, to this Tender will be hosted on the

web site of Air India (www.airindia.in) and no separate NIT would be issued in the newspapers. AASL will also not intimate the Bidders individually of the same. The Bidders are, therefore, advised to visit the Air India web site regularly till the date of closing of the Tender. The last amendment, if any, will be hosted a minimum of seven days before the closing date of the Tender. However any substratum changes as well changes in due dates and extensions if granted to this Tender would be hosted on the Air India website/tenders page and the requisite NIT thereof would also be issued.

3.11. The Commercial Bids of only those Bidders, who qualify in the Technical Bid evaluation,

would be opened at a later date, which would be notified in advance to the shortlisted Bidders.

3.12. In the event of default by the Service Provider(s), AASL reserves the right to cancel the

contract and to claim damages from the Service Provider(s), and also reserves the right to award the contract to another party at the sole cost and risk of the Service Provider(s).

3.13 Details regarding the Technical & Commercial Bid response and submission. A) Technical Bid:

This consists of two parts - one part consists of Company profile and technical information, regarding the Bidder at Annexure ‘F’ and the second part consists of the pre-qualification criteria at Annexure ‘G’. Bidders are required to submit complete detailed information about itself duly supported by related documentation for both Annexure ‘F’ and Annexure ‘G’. However for the Pre-qualification / Eligibility criteria at Annexure ‘G’, the Bidders are required to meet the eligibility criteria mentioned in


of 69

Annexure ‘G’. In case Bidders fail to meet the criteria mentioned in Annexure ‘G’, their bids are liable to be disqualified.

B) Commercial Bid:

The Bidders are required to submit their best and firm commercial offer at Annexure-I, in the same format enclosed herewith. The Bidders while submitting their Bids must study the various notes in the Annexure ‘I’ and confirm compliance to all the requirements thereof.

3.14 Evaluation criteria for the Technical Bids, Commercial Bids & method of arriving at L-1

Bidder.

I. Technical Bid:

The Technical Bids submitted would be evaluated to verify and assess the suitability and compliance of the Bidder as to whether the applicant to the Tender has the required capability, capacity and / or expertise to provide the required services under this Tender. It may be noted that all those Bidders who fully and unconditionally meet all of the Eligibility criteria listed at Annexure – G, would be declared qualified in the technical evaluation process. (i) All the offers received would be evaluated based on their response to the PQ

criteria and the response to the company profile and technical information. All the conditions indicated as “MANDATORY” conditions in the Pre-Qualification Criteria (Annexure – G) response format, are to be replied by the bidders along-with the supporting documents thereof.

(ii) The Bidder must also have submitted the requisite EMD amount of USD 5000/- only, as per the clause 4 of Annexure ‘A’.

(iii) The Bidder must submit the signed Integrity Pact document (Annexure-K) along-with the Technical Bid response in order to qualify the technical evaluation.

Any exceptions, conditions, covenants or qualifying remarks submitted by the Bidders shall make the bids liable to be rejected. AASL reserves the right to seek additional information / clarification from the Bidders in support of its Technical Bid as well as to confirm the authenticity of the documents or to seek clarifications from the concerned authorities for compliance with the requirements, without making any reference to the Bidders. AASL also reserves the right to seek documents / information / clarifications from the Bidders as it may deem necessary for the purpose of evaluation of the Technical Bids, to determine their suitability or otherwise for this Tender.

The verification of the information submitted by the Bidder through a site visit, if required by the Technical Committee may also be the part of the Technical Evaluation.

II Commercial Bid: The Commercial Bids of only those Bidders, who qualify and are short listed on evaluation of their Technical Bids, would be opened. The date and time of opening of the Commercial Bids would be intimated in advance to the Bidders who have qualified

of 69

in the Technical Bid evaluation, and they or their authorized representatives only, would be permitted to participate in the opening of the Commercial Bids. The Commercial Bids would be evaluated as per stated evaluation criteria at para 3.15 below.

3.15 Method of evaluation of Commercial Bids and arriving at L-1 offer Bidders are required to offer their best and firm rates for the unit rates of all the components listed in Annexure-‘D’. as well as the lease charge (%), standard exchange (%) and the capping of repair charges (%) in the specified format for Commercial Bid at Annexure-I.

LOADING for variation in payment terms:

AASL desires that all Bidders agree to the stated payment terms. In case of fixed lease charges, payment shall be made on or before the due date, on monthly basis, on receipt of invoice at least 45 days prior to the due date. In case of other charges, payment shall be made after 45 days of receipt of invoice. The offers from the Bidders would be evaluated and computed for the TOTAL VALUE OF COMPONENTS OFFERED &average % offer for Lease charge (Annual %), standard exchange (%) and capping on repair charge (%).The cumulative sum of all these charges would be the FINAL VALUE of the offer for each of the Bidders quoted offer. The sample method of evaluation is as demonstrated below:

NOTE: No upfront payment is to be paid by AASL. However, if any Bidder requires any upfront payment (other than three months security deposit), then loading @ 18% per annum shall be done to arrive at the FINAL VALUE OF THE OFFER which will then be compared with the other Bidders. The L-1 offer from amongst all the total offers received would then be decided based on the lowest FINAL VALUE offer evaluated by AASL as mentioned above.

S/ No

Details Value (assumed)

1 Total stock value of all 164 items USD 100000

2 Annual Lease charge - % of unit rate averaged for all items say at quoted rate of 10% (100000 X 10%)

USD 10000

3 Standard Exchange charge - % of unit rate averaged for say n items exchanged of value USD 40000 at say quoted rate of 10% (40000 X 10%)

USD 4000

4 Capping of repair charge - % of unit rate averaged for n items repaired of value USD 40000 at say quoted rate of 20% (40000 X 20%)

USD 8000

5 Total package value of all 164 items (2+3+4) USD 22000

6 FINAL VALUE OF THE OFFER USD 22000

of 69

3.16 Variation:

AASL expects that the prospective Bidders submit no variations from the terms specified in the Tender document and/or non-acceptance of the General Terms & Conditions or the work-scope specified in this Tender document. However in the unlikely event of certain variation, the same may be stated clearly in the Annexure - J which is required to be enclosed in the technical Bid submitted in response to this Tender. The Bidders are requested to note that non-compliance to any of the eligibility criteria stated at Annexure-B / Annexure – G would lead to disqualification of their Bids.

3.17. The Bidder(s) shall bear all costs associated with or relating to the preparation and

submission of its Bid including but not limited to preparation, copying, postage, delivery fees, expenses associated with any demonstrations or presentations which may be required by AASL or any other costs incurred in connection with or relating to its Bid. All such costs and expenses will remain with the Bidder and AASL shall not be liable in any manner whatsoever for the same or for any other costs or other expenses incurred by a Bidder in preparation or submission of the Bid, regardless of the conduct or outcome of the Tender process.

4. Earnest Money Deposit / Security Deposit:

4.1 Earnest Money Deposit. 4.1.1. The Bidders are required to pay an Earnest Money Deposit (EMD) of USD 5000/-

(United States Dollar Five Thousand Only), in the form of Wire transfer / demand draft / pay order / banker's cheque drawn in favour of “Airline Allied Services Limited”. The proof of wire transfer of the EMD amount must be submitted along-with the hard copy of the Technical Bid, in the sealed technical Bid envelope.

Please note that AASL requires copy of ‘confirmed transfer’. Copy of ‘applied’ or ‘pending transfer’ shall not be accepted and such Bids shall be rejected as non-responsive. EMD in USD may be remitted to the following bank account. Name of beneficiary : AIRLINE ALLIED SERVICES LIMITED PAN : AAACA15178 Name of the Bank : PUNJAB NATIONAL BANK Address : DELHI CANTT., DELHI-110010 Account Number : 0112005900000017 MICR Code : 110024006 IFSC Code : PUNB0011200 SWIFT Number : PUNBINBBISB

4.1.2 EMD shall be interest free. 4.1.3 EMD of the unsuccessful Bidders will be refunded within 60 days after completion of

the Tender process and after the award of the contract to the successful Bidder(s). 4.1.4 EMD of the successful Bidder(s) will be returned upon signing of the contract.

of 69

4.1.5 EMD will be forfeited in the event of Bidder withdrawing or modifying their Bid or not

honoring their commitment made in their Bids after opening of the Bids or the successful Bidder declining to accept the LOI and/or execute the contract.

4.2 Security Deposit Security Deposit in the form of a Standby Letter of Credit (SBLC), equivalent to three

months lease rent, shall be provided by AASL to the successful Bidder within 10 business days of execution of the contract.

5. Invoices, Billing and Payment:

5A Invoices/Supporting Documents:

i) Invoices under various heads will be raised separately. ii) The individual invoices could be related to the Lease / standard exchange/ repairs /

conversion from lease to sale/sale etc. iii) The payments will be transferred by wire transfer to the successful BIDDER’s bank

account for which details must be provided in the company’s profile at Annexure ‘F’. iv) For Tax deduction at Source(TDS) / Withholding Tax liabilities under Indian Income tax

laws for the non-resident bidding entity, the Bidder has to undertake to provide the following declarations/documents to AASL:

a) Indian PAN (Permanent Account Number) of the Lessor, issued by Indian Income

Tax authorities, under Section 206AA of the Indian Income Tax Act of 1961, would be required to be provided / obtained by the successful Bidder on receipt of LOI and should be produced at time of execution of the Contract.

In case the non-resident foreign Bidder does not provide such Indian PAN, TDS applicable as per Indian Laws would be deductible from the amounts payable for which tax deducted certificates in the applicable forms as per Indian Income tax laws would be provided by AASL to the selected entity.

b) Tax Residency Certificates from the local authorities where Lessor is resident and assessed for income and such required forms, such as Form 10(F) as per Indian Income tax rules would be mandatorily required to be obtained by the successful Bidder on receipt of LOI and should be produced at time of execution of the Lease Agreement. Such tax residency certificate has to be obtained and provided to AASL for every year during the contract considering that the Indian tax laws recognize financial and accounting year beginning from 1st April and ending on 31st March.

c) No Permanent Establishment (PE) Certificate: In the addition to the above documents, the successful Bidder would periodically be required to provide a No Permanent Establishment certificate to declare/undertake that they do not have any office/business establishment in India.

v) For Service Tax liabilities:

Service Tax Registration No. of the Successful Bidder, issued by Indian Service Tax

authorities, would be required to be provided / obtained by the successful Bidder on receipt of LOI and should be produced at time of execution of the Lease Agreement as

of 69

the applicable service tax, presently @14.5%, is a liability of the Service Provider and

the same would be required to be deposited with the relevant Indian service tax

authorities in India by such selected entity.

vi) Royalty charges by the Airport operator DIAL:

The components listed herein are for storage in AASL’s Line Maintenance Stores at T-3,

IGIA, New Delhi which would be manned on 24X7 basis by the manpower provided by

the proposed Service Provider(s).This would therefore attract the Royalty Charges

currently levied @ 13% by DIAL which would be applicable on all the services rendered

by the Service Provider(s). Such charges would be borne by the Service Provider(s) only,

but would be reimbursed by Alliance Air upon being invoiced on a monthly basis by the

Service Provider(s) along-with the other applicable charges.

5B Billing:

In case of fixed lease charges invoice is to be given at least 45 days prior to the due date. The Billing Cycle shall be monthly in arrears basis for exchange/ repair items. Exchange/Repair Invoices to be submitted at the close of each month. Such invoices will be supported by individual invoices (for repairs carried out) wherever so along with any other required document for the transaction during the month.

5C Payment:

i) In case of fixed lease charges, payment shall be made on or before the due date, on monthly basis, on receipt of invoice at least 45 days prior to the due date. In case of other charges, payment shall be made after 45 days of receipt of invoice and all supporting documents.

ii) No Advance payment shall be made by Alliance Air for invoices raised. iii) Payment will be made through wire transfer. iv) The Service Provider(s) to note that the payments are subjected to conditions specified

at 5A-iv (a), (b), (c) and 5A-v, as above. v) All payment shall be done in USD.

5D No Upfront payment:

i) There will be no upfront payment, other than providing the security deposit in the form of SBLC, as per clause 4.2 mentioned above.

6. Delivery of Components during initiation:

The project should start immediately from the date of signing of contract and the entire list of components must be positioned on the shelf at AASL Delhi, within 30 calendar days after signing of contract. The Bidders are required to submit a firm commitment to comply with the above delivery schedule.

7. Price, Contract Validity and Extension:

of 69

7.1 The validity of the contract would be from the date of signing of contract and the term of the proposed contract shall be 10 years, duly extendable by another 2 years thereafter, subject to satisfactory performance during the contract period and each extension as decided.

7.2 The prices shall remain firm for tenure of the contract of 10 years. No request for

increase in price shall be entertained during this period. Since the contract is duly extendable by another 2 years thereafter, subject to satisfactory performance during the contractual period, all the terms and conditions including rates / financial terms of the contract would also be maintained during the extension period.

7.3 In case of decrease in government duties/taxes/levies if any, either by the government

of the country of origin of the services rendered or by the Government of India, the benefit of the same shall be passed on to AASL during the period of the contract.

7.4 In case of increase in government duties/taxes/levies or introduction of any new taxes

by the government during the period of the contract, the burden of the same may be borne by AASL if mandated by law and requested by the Component Service Provider. However such request will be considered only if it is substantiated with copies of valid documentary proof.

8. Penalties: 8.1. The essence of the contract is to ensure continued availability of all the items listed at

Annexure ‘D’ at all times. For non-maintenance of the desired quantity/no. of items, Bidders must note that lease charges shall not be paid for those components that the Service Provider(s) is not able to make available on the shelf for the duration till its availability is confirmed. In addition, a penalty equivalent to 50% of the lease charges shall be levied by AASL for the period during which the item was not provided by the service provider to AASL.

8.2 The standard exchange charges would be due upon receipt of the exchange item by

AASL from the Service Provider(s). However, the payment shall only be made, if the replacement component is shipped within a time period of 72 hours from the repair facility, otherwise the same shall not be payable.

8.3 AASL further reserves the right to cancel the contract in the event of continued delay in

providing services and also reserves the right to issue a fresh contract to any third party at the sole cost and risk of the Service Provider(s).

9. Subcontracting:

No subcontracting or delegation or outsourcing of any of the main activities of the Service Provider(s) to any entity other than the Service Provider(s) would be permissible. The Bidder shall not sub-contract, or delegate or outsource any of the activities of the project to a third party, without the prior written consent of Alliance Air. The Bidder shall not be permitted to assign any part of the proposed contract in favor of any third party. For the avoidance of doubt, any such assignment or

of 69

subcontract entered into by the Service Provider(s), shall be deemed to be void and shall make the contract liable to be terminated at the sole discretion of AASL.

10. Integrity Pact:

All Bidders are required to sign the integrity pact attached herewith as Annexure – K and submit the same as their technical response along with the pre-qualification Bid. Failure of a Bidder to sign and provide the same to AASL along with its Technical Bid, would render such Bid of the respective Bidder non-responsive and the same shall be rejected by AASL.

11. Confidentiality:

The Bidders acknowledge and agree that they shall at all times keep confidential, all information acquired in consequence of this proposal, except for information which they may be entitled or bound to disclose under compulsion of law or where requested by regulatory agencies or to their professional advisers where reasonably necessary for the performance of their professional services.

12. Extension/Termination of Contract: The contract may be terminated under the following circumstances:

a. The validity of the contract/agreement comes to an end IPSO FACTO by efflux of time unless otherwise renewed/ terminated. The contract period shall be ten years from the date of signing of contract, duly extendable by another 2 years thereafter, subject to satisfactory performance during the contractual period.

b. If there is a material breach or material non-observance by the Service Provider(s) of any one or more of its obligations under the Contract, and such material breach or material non-observance continues for a period of more than two months after receipt of notice from AASL to remedy such material breach or material non-observance, then AASL shall without prejudice to its other rights under any Contract have the right, by written notice to the Service Provider(s), to terminate the contract or any relevant part thereof. In such case, the Service Provider(s) shall not be entitled to any compensation whatsoever for costs incurred or to be incurred on this account.

c. In case the Bidder does not meet the stated Tender / contract requirements, for

consecutive period of two months, Alliance Air may, at its sole discretion, terminate the contract.

d. If there is a change in Alliance Air’s requirement, the contract shall be terminated with

two months’ advance notice.

e. In the event of Breach of Confidentiality, the contract can be terminated mutually by Alliance Air and successful Service Provider(s) with a notice period of two months.

13. Force Majeure:

of 69

The obligation stipulated in this specification can only be suspended, in the case of any particular item of work, in the event of Force Majeure as defined below or as the result of an agreement between AASL and the Service Provider(s). In the event of Force Majeure, neither of the parties may be considered in default of its obligations under the terms of this Tender. “Force Majeure” is hereby defined as any cause which is beyond the control of the successful Bidder(s) or Alliance Air as the case may be, which they could not foresee or with a reasonable amount of diligence could not have foreseen and which substantially affect the performance of the contract, such as: natural phenomena including but not limited to floods, droughts, earthquakes, and epidemics, acts of any government, domestic or foreign, including but not limited to war, declared or undeclared, priorities, quarantines, embargoes; provided either party shall within fifteen (15) days from the occurrence of such a cause notify the other in writing of such causes.

14. Contract survivability:

In the event the successful Bidder is acquired by, or merges with another company by operation of law, the terms and conditions of the contract shall remain in full force and effect with the acquiring company. Alliance Air shall however have the discretion and option to terminate the contract in such an event.

15. Infringement & indemnity:

The Bidders shall comply with all laws in force in India. The laws will include all national, provincial, municipal, or other laws that affect the performance of the contract and are binding upon the Bidders. The liabilities of all statutory /legal mandatory regulations /obligations regarding manpower/product/services shall be borne by the Bidders. The Bidders should indemnify Alliance Air from any breach of Govt. regulation/infringement of laws- such as IT, Service tax, PF regulation, ESI regulation, Labour laws, Minimum wages act, etc. The bidders are also required to get the registration done with various Govt. agencies for the same.

16 Jurisdiction:

Any dispute whatsoever shall be subject to the exclusive jurisdiction of the courts of New Delhi only.

17. Amendment of Tender document: 17.1 At any time prior to the last date for submission of Bids, Alliance Air may for any reason,

whether at its own initiative or in response to a clarification requested by a Bidder, modify this Tender document by an amendment.

17.2 Amendments, corrigendum & clarifications if any, to this Tender will be hosted on the

web site of AIR INDIA (www.airindia.in) and no separate NIT would be issued in the newspapers. Air India shall not intimate the Bidders individually of the same. The Bidders are, therefore, advised to visit the Air India web site regularly till the date of closing of the Tender. The last amendment, if any, will be hosted a minimum of seven days before the closing date of the Tender. However any substratum changes as well


of 69

changes in due dates and extensions if granted to this Tender would be hosted on the Air India website/tenders page and the requisite NIT thereof would also be issued.

17.3 In order to afford reasonable time to the Bidders to take such amendments into account

for preparation and submission of their Bids, Alliance Air may, at its sole discretion, extend the last date for the submission of Bids.

18 Inspection Clause:

Alliance Air reserves the right to inspect the repair facility/facility of the Bidders/in order to assess their infrastructure and capability to produce and deliver the services during the technical evaluation process. Alliance Air further reserves the right to inspect the repair facility/facility of the successful Bidder during the contract period/extensions in order to confirm consistency of quality of the services being rendered.

19. Grounds for Rejection of Bids:

The Bids are liable to be rejected forthwith as non-responsive, i.e., without being evaluated, on the following grounds:

a) If the BID has been received after the closing date / time of the Tender. b) If only the Technical Bid has been received and the Commercial Bid has not been

received, and vice versa. c) If the Bid has been received by emails or fax instead of in separate sealed / closed

covers. d) If the Bid has not been signed by the authorized signatory of the bidder. e) If the Technical Bid has been received without EMD or the EMD has been submitted in a

mode other than as specified in this Tender. f) If the Bid is received without the signed Integrity Pact in the Technical Bid. g) If the Bidder’s response is not received in SEALED / CLOSED condition and if the Bids are

not deposited in the tender box at the designated address as mentioned in the Tender. h) If the information given in response to the Tender is incomplete, ambiguous, without

requisite supporting documents, unverified, unattested and/or submission of illegible copies or unexplained materials and/or Bids not received as per the desired formats & bidding instructions.

i) If the commercial Bid indication has been provided in the Technical Bid. j) If the Bid is not presented neatly and corrections if any are not duly authenticated with

full authorized signatures of the person who has signed the Bid document. k) If the Bid has been received without the undertaking of acceptance of all terms &

conditions. l) The above list is only illustrative and there can be other relevant grounds of rejection of

Bids.


Alliance Air

of 69


PRE-QUALIFICATION CRITERIA FOR THE TENDER Annexure B


Alliance Air Tender hereby specifies the following pre-qualification criteria governing the Tender. Bidders are required to meet the pre-qualification criteria’s stated in this document, in order to qualify in the technical evaluation exercise.

Bidders may kindly note that the Commercial Bids of only those Bidders would be opened, who qualify the technical evaluation exercise.

S.No. Pre-Qualification Requirements

1 The Bidder must specialize in Aircraft parts supply and support, duly approved by FAA/EASA, which must be duly supported by relevant documentation.

2 The Bidder must be in business since the past 5 years and the company must have formed not later than 01.01.2010. The Certificate of Incorporation / MOU / COI / equivalent document should be submitted in support of this condition.

3 The Bidder must have a turnover in excess of USD 10 million per annum, for the previous two years

i.e. Financial year 2013-2014 and 2014 – 2015, duly supported by the self declaration of the Bidders.

4

The Bidder should have provided successful component support for at least two major airlines,

operating ATR 72-212A (600 VERSION) Family Aircraft fleet, in the preceding 5 years. (Duly supported

by documentation like copies of contracts / PO‘s etc).

5 The Bidder agrees to provide integrated component support to Alliance Air in response to this Tender, consisting of the following 4 types of services:

5a

The Bidder agrees to provide and maintain a pre-determined quantity of the serviceable components, for the lease-in ATR 72-212A (600 VERSION) Aircraft, at ALLIANCE AIR facilities, New Delhi, India, as per item part numbers and its respective quantities given in the Annexure ‘D’ for which lease charges would be payable by Alliance Air.

5b The Bidder agrees to carry out the replacement shipment of the component within 72 hours, upon issue of the same from the shelf of Alliance Air, New Delhi

5c The Bidder agrees to repair the component through its OEM/FAA/EASA affiliated/approved repair shop.

5d The Bidder agrees to provide, to & fro logistic support for components including packing, forwarding, and customs clearance, in short, door to door service for each component as per list.

6

The Bidder agrees to offer in response to this Tender, its offer price consisting of the following parts: a) Lease charges as a percentage of the unit cost for the New / Freshly Overhauled unit offered

by the Bidder towards each item in the list. b) The standard exchange price (in %) of the unit cost for each item and c) The capping on the repair charge for each item.

(It is mandatory for the Bidders to agree to the above concept of pricing only and no other alternate

of 69

options would be considered)

7

The Bidder agrees to offer a warranty of minimum 12 months or as specified by the OEM/repair shop from the date of stocking of the component in New Delhi, duly applicable for both the initially positioned item offered in New / Freshly Overhauled condition offered by the Bidder and subsequently repaired components, for all the components as per list enclosed at Annexure – D.

8 The Bidder agrees to bear the freight charges both ways for removal of any component, during the warranty period.

9

The Bidder agrees that all the components supplied against the contract would be accompanied by the FAA/EASA documents, and that such component would be INCIDENT FREE and have BACK TO BIRTH TRACEABILITY and life of component supplied should NOT BE MORE THAN 110% OF THE LIFE OF AIRCRAFT on which the component is required to be installed. Bidders to note that Alliance Air QC may review all such documentations prior to authorizing the shipment from the Bidders end. In case of exigencies, if the life of the component being supplied by the service provider is more than 110% of the life of the aircraft on which it is to be installed, then the service provider has to provide a replacement for such components free of charge to AASL within six (06) months in order to meet this requirement.

10 The Bidder agrees that in order to be eligible for levy of the exchange fee, the replacement components must be shipped from the Bidder facility within 72 hours of issue of the corresponding component from the warehouse in New Delhi.

11 The Bidder agrees that the replacement component must be shipped within 24 hours in case of AOG requests from Alliance Air.

12

The Bidder agrees that Alliance Air will have the option to review float for each of the item, after completion of every six months and may seek removal of certain components or reduction of quantities. The Bidder further agrees to proportionately reduce the lease charges, from its monthly billing, for the items removed from the pool of stock items.

13

The Bidder agrees that Alliance Air will have the option of adding additional components to the list. The unit cost price of this additional component will be as per fair market value duly assessed by evaluating quotes of the same condition unit from at least three reputed suppliers. In case of increase in float of existing item, the contracted value of the item will be applicable to the additional float as well.

14 The Bidder agrees that Alliance Air will have the option to return an issued item with a serviceable tag in case of non-usage or in case where the Aircraft snag reoccur within 48 hours of installation of the unit. The exchange fee will not apply in such cases.

15 The Bidder agrees that Alliance Air will have the option of repairing / inspecting the unit at its own facilities wherever possible and return the unit to Bidder stock with Air India serviceable tag.

16 The Bidder agrees that Alliance Air will however bear any costs related to obtaining FAA/JAA certificate for such component at mutually acceptable repair stations at the termination of the contract if desired by Bidder.

17

The Bidder agrees that it itself will be solely responsible for delivering round the clock service on 24X7 basis to Alliance Air, at its facility at Line Maintenance Stores at T-3, IGIA, New Delhi, at Bidders own cost including safe-keeping of the items, handling of components to and from repair shop, manpower charges, costs for obtaining passes from the Airport Operator M/s DIAL, Govt. taxes and levies within India and that no other separate charge would be admissible other than that stated at point 6 herein.

of 69

18 The Bidder agrees that Alliance Air would provide security deposit in the form of SBLC, equivalent to three months lease rent and there will be no upfront payment.

19

The Bidder agrees to the following conditions in terms of compliance with the prevailing tax laws in

India.

1. For Tax deduction at Source(TDS) /Withholding Tax liabilities under Indian Income tax laws

for the non-resident bidding entity, the Bidder has to undertake to provide the following

declarations/documents to AASL:

a) Indian PAN (Permanent Account Number) of successful Bidder, issued by Indian Income Tax authorities, under Section 206AA of the Indian Income Tax Act of 1961, would be required to be provided / obtained by the successful Bidderon receipt of LOI and should be produced at time of execution of the Lease Agreement. In case the non-resident foreign Bidder does not provide such Indian PAN, TDS applicable as per Indian Laws would be deductible from the amounts payable for which tax deducted certificates in the applicable forms as per Indian Income tax laws would be provided by Alliance Air to the selected entity.

b) Tax Residency Certificates from the local authorities where successful Bidderis resident and assessed for income and such required forms, such as Form 10(F) as per Indian Income tax rules would be mandatorily required to be obtained by the successful Bidderon receipt of LOI and should be produced at time of execution of the Lease Agreement. Such Tax residency certificate has to be obtained and provided to Alliance Air for every year during the contract considering that the Indian tax laws recognize financial and accounting year beginning from 1st April and ending on 31st March.

c) No Permanent Establishment (PE) Certificate In addition to the above documents, the selected Bidder would be periodically required to provide a No Permanent Establishment certificate to declare/undertake that they do not have any office/business establishment in India.

2. For Service Tax liabilities:

a) Service Tax Registration No. of the successful Bidder, issued by Indian Service Tax

authorities, would be required to be provided / obtained by the successful Bidder on receipt

of LOI and should be produced at time of execution of the Lease Agreement as the applicable

service tax, presently @14.5% is a liability of the Service Provider and the same would be

required to be deposited with the relevant Indian service tax authorities in India by such

selected entity.

3. Royalty charges by the Airport operator DIAL: The components listed herein are for storage in AASL’s Line Maintenance Stores at T-3 which would be manned on 24X7 basis by the manpower provided by the proposed Service Provider(s). This would therefore attract the Royalty Charges currently levied @ 13% by DIAL which would be applicable on all the services rendered by the Service Provider(s). Such charges would be borne by the Service Provider(s) only, but would be reimbursed by Alliance Air upon being invoiced on a monthly basis by the Service Provider(s) along-with the other applicable charges.

Note: 1. The reference to the component means to each of the component as per the list of components enclosed at

Annexure – D.


of 69


FUNCTIONAL REQUIREMENTS FOR THE TENDER Annexure – C


1. INTRODUCTION:

AASL is operating a combined fleet of over 11 Aircraft. AASL has a fleet of five new ATR 72-212A (600 version)Aircraft, which may be increased from time to time. Also, AASL is already in the process of inducting three more new ATR 72-212A (600 version) Aircraft within next three months. Some of the components fitted on the leased ATR 72-212A (600 VERSION)Aircraft are required to be placed in AASL premises as home base items, (hereinafter referred to as the “Components”). In order to support the requirements of items for these leased ATR 72-212A (600 version) Aircraft, AASL is floating this two bid tender process for selection of the Service Provider(s) for rendering the integrated support for the ATR 72-212A (600 version) Aircraft components on lease basis. The proposed contract shall be effective from the date of signing of contract, for placement of the “Components” in AASL premises and its management thereof and the term of the proposed contract shall be 10 years, duly extendable by another 2 years thereafter, subject to satisfactory performance during the contract period and each extension as decided.

2. INTEGRATED SUPPORT

AASL is looking for integrated component support to be provided by the Service Provider(s)at New Delhi, holding a pre-determined stock of ATR 72-212A (600 version) Aircraft components in New Delhi, as indicated by AASL at Annexure – D, through this two bid tender process. The integrated services required would include the following: i) Initial positioning of all the listed components in the pre-determined

quantity of all of the listed components in NEW / Freshly OVERHAULED condition only, at AASL’s designated warehouse facilities in New Delhi, India as per quantities specified in the Annexure ‘D’. All such components must be accompanied with a FAA8130 / EASA Form One documents and traceability documents supporting the same.

ii) Providing and maintaining the pre-determined quantity of all of the listed components (In New/ Freshly Overhauled/ Shop Visit condition) at AASL’s

of 69

designated warehouse facilities in New Delhi, India as per quantities specified in the Annexure ‘D’, for the complete duration of the contract. All such components must be accompanied with a FAA8130 / EASA Form One documents, INCIDENT FREE certification and BACK TO BIRTH TRACEABILITY documents supporting the same, and life of component supplied should NOT BE MORE THAN 110% OF THE LIFE OF AIRCRAFT on which the component is required to be installed. Bidders to note that Alliance Air QC may review all such documentations prior to authorizing the shipment from the Bidders end. In case of exigencies, if the life of the component being supplied by the service provider is more than 110% of the life of the aircraft on which it is to be installed, then the service provider has to provide a replacement for such components free of charge to AASL within six (06) months in order to meet this requirement.

iii) Maintaining of stocks and carrying out / discharging the various stockroom/warehouse functions like receipt, stocking, issuance, etc of the components as and when required by the Engineering Department of AASL.

iv) Carry out the repairs/OH to the unserviceable components through the designated OEM/FAA/EASA approved repair shop, with which the Bidders have an established relationship, within the earliest TAT and repair price capping quoted and approved in the contract.

v) To and fro logistic support for movement of components including packing, forwarding, and customs clearance. (The Core components will be made available for export maximum within 15 days of removal by AASL. For removal during warranty period freight both ways and the custom duty involved will be borne by the Service Provider(s). However, for components which are out of warranty, the same will be reimbursed to the contracted party, at actuals within 45 days against claims to be raised monthly.) In short, the service from the Service Provider(s) shall be on door to door basis.

vi) Submission of monthly statements of stocks, issuance and receipts for all components maintained by the Service Provider(s) as well as posting the transaction Details from time to time in RAMCO system followed in Alliance Air.

vii) Any other function as is required to be carried out with respect to the inventory maintained by the Service Provider(s) in Delhi and as required by Alliance Air.

3. COMMERCIAL TERMS:

The Tender is structured for following requirements: a. Leasing of the components as listed in Annexure ‘D’, in the desired quantities, with

the option of converting the lease to outright sale anytime during the currency of the contract, at the contractual unit price in the sole discretion of AASL.

b. Standard exchange charges to be levied upon receipt of exchange item by AASL

from the Service Provider, after issuance of any component from the shelf and against authorized requisitions raised by AASL’s Engineering Department officials. However such of the charges would only be payable on the sole condition that the replacement unit has been invoiced and shipped back within a period of 72 hours

of 69

max, failing which no standard exchange charges would be applicable. Standard exchange charge is to be indicated in % (percentage) of the price of the unit offered by the Bidder in the Commercial Bid.

c. The capping on repair charge as a % of the value of item quoted by the Bidder is

required to be indicated. d. Bidders are required to submit their offer in full for the components as per the list

attached at Annexure ‘D’. However, the condition of the units offered may vary, for example, some of the items may be of New Condition, and others can be in Freshly Overhauled Condition.

e. The Bidders are required to note that all the payments are subjected to conditions specified at 5A-iv (a), (b), (c), 5A-v, and 5A-vi of Annexure “A”.

f. Bidders are required to submit their Commercial offer in the pre designed formats

only as per Annexure-I enclosed herewith.

4. OPTIONS WITH ALLIANCE AIR:

Alliance Air reserves with itself the following options:

a) Review of components every six months for any increase or decrease in the quantity of the listed components as per Annexure ‘D’.

b) Any addition of a new component to the existing list of components as per Annexure ‘D’ at any time during year may be incorporated as per AASL requirement, the price of which would be determined based on market availability and the then prevailing market prices.

c) Converting the lease agreement to outright sale, for any of the components as listed in Annexure ‘D’, as required by it, anytime during the currency of the contract, at the contractual unit price.

d) The buyback of the component/s as listed in Annexure ‘D’ by the Service Provider(s) that has been maintained by Alliance Air on outright sale basis, as required by it, anytime during the currency of the contract, at the contractual unit price.

e) Alliance Air reserves the right to repair / testing of the components in-house due to it being a FAA/EASA approved unit and the Service Provider(s) should agree to receive such units repaired at Air India with the accompanying quality documents.

5. INSURANCE:

i) Alliance Air will provide all Insurance coverage including liability, loss including of incident related components and FOD while in Alliance Air premises.

ii) The transit insurance for the goods to and from Alliance Air shall be the responsibility of the Service Provider(s).

6. FREIGHT FORWARDING & CUSTOMS CLEARANCE:

of 69

i. The terms of the shipment shall be FOB Delhi for export from India and Ex Works Service Provider(s)’s facility for import into India for AASL, all freight charges, Indian Govt. Import tax or any other import/export related charges will be borne by the Service Provider(s) and such of these expenses will be duly reimbursed by Alliance Air at actuals. Bidders may note that there is NIL customs duty on Aircraft parts in India and hence no reimbursement of the customs duty would be applicable. (However, at any stage later if any custom duty is imposed on import of aircraft parts in India the same shall be borne by AASL). Any other related charges arising from the delays attributed to the Service Provider(s) shall not be the responsibility of AASL. Alliance Air may assist the representative of the Service Provider(s) in clearing initial consignment for the purpose of familiarization with the customs clearance process. All subsequent clearances will have to be handled by the representative of the Service Provider(s) itself. For the avoidance of doubt, AASL shall have no liability towards the Service Provider(s) with regard to the custom clearance process and the same shall be the sole responsibility of the Service Provider(s).

ii. However, all charges during warranty period will be borne by the Service Provider(s).

7. DELIVERY:

i. Initially 50 per cent of each of the line item (minimum quantity 1) is to be supplied

within 15 days upon signing of contract. Balance quantities are required to be shipped within 15 days thereafter.

ii. The selected Service Provider(s) will provide same day shipment against AOG request.

iii. Normal replenishments are to be made within 3 days (72 hours) of issue of item from stock.

8. RISK PURCHASE:

In the event that a component is not replenished under this provision on a timely basis, leading to an AOG situation or the grounding of the Aircraft, Alliance Air shall acquire the component from other sources and the cost including other incidental charges of acquiring such components will be recovered from the Service Provider(s) from the next payment cycle or shall be adjusted against any amounts due to the Service Provider(s) from AASL.

Replenishment by Alliance Air at risk and cost to the successful BIDDER in the above circumstances may accrue under the following circumstances:

a. The desired component is not shipped within 72 hours of the issue of component from the successful BIDDER’s stock at Delhi and the balance stock equals to one or zero leading to AOG situation or grounding of an Aircraft.

b. AOG requirement not immediately fulfilled.

9. APPROVALS:

The contract to be executed shall be subject to all Alliance Air and its related Government approvals such as Reserve Bank of India, Ministry of Finance, Pre-export approvals for components to be returned to seller at the time of termination/expiry of contract.

of 69

10. WARRANTY, AGE, CERTIFICATION OF REPLACEMENT PARTS/COMPONENTS:

a. The components initially positioned in NEW / Freshly OVERHAULED condition by

the Service Provider(s) with Alliance Air shall have full warranty as provided by the OEM vendor. The necessary documentation should indicate clearly the warranty terms for proper governance during the contractual term.

b. The subsequent replenishment of the float items should carry a warranty as

provided by the OEM/Repair shop. The necessary documentation should indicate clearly the warranty terms for proper governance during the contractual term.

c. The Service Provider(s) commits to get the Components repaired by OEM or OEM

approved Repair Stations only. All such components must be accompanied with a FAA8130 / EASA Form One documents and traceability documents supporting the same. The use of PMA parts is strictly prohibited. Any proposed repair to an OEM part, which has been approved by the FAA DER or its EASA equivalent will strictly be subject to written authorization by Alliance Air Quality Control officials and shall be at its sole and absolute discretion, prior to the performance of such repairs.

d. The Service Provider(s) will not raise any invoice for any of the parts scrapped in the

normal course of time, during the tenure of the contract.

11 NO UPFRONT PAYMENT TOWARDS POSITIONING OF INVENTORY

i) There will be no upfront payment, other than providing the security deposit in the form of SBLC, as per clause 4.2 of Annex-A.

12 SECURITY DEPOSIT Security deposit in the form of SBLC, equivalent to three months lease rent shall be provided, as per clause 4.2 of Annex-A.


Alliance Air

of 69


LIST OF COMPONENTS FOR LEASED ATR-212A (600 version) AIRCRAFT

Annexure D


ITEM ATA PN Manuf CODE

DESCRIPTION Homebase Kit Qty Required

1 21 2095F040800 F1958 ELETTROPN OUTFLOW VALVE 2

2 21 2096H040800 F1958 PNEUMATIC OUTFLOW VALVE 3

3 21 2205120-4 70210 AIR CYCLE UNIT 2

4 21 22250F100200 F1958 DIGITAL CONTROLLER 1

5 21 3214960-3 59364 PRESSURE REG AND S/O VALVE 2

6 21 41173C010000 F1958 CHECK VALVE 2

7 21 5427-404-80-10 F9111 DUAL TEMPERATURE INDICATOR 2

8 21 5618C000-002 K0872 T.I.C. VALVE 2

9 21 624820-1 70210 CONTROLLER-TEMP 1

10 21 8535C000 K0872 CONDENSER 1

11 21 8571C000 K0872 EXCHANGER 1

12 21 979142-6-1 70210 VLV-SHUTOFF TURBOFAN 2

13 21 979990-1 70210 TEMPERATURE CONTROL VALVE 2

14 21 AE1012B00 F4957 RECIRCULATION FAN ASSY 2

15 21 AT0518A01 F4957 GROUND COOLING FAN 2

16 21 EVTA1925B F4957 E/E COOLING FAN 2

17 21 PRE1010 S3960 AMBIANT PRESSURE UNIT 2

18 22 C12424CC F9111 FLIGHT GUIDANCE CONTROL PANEL 1

19 22 C18427AA F9111 AUTO PILOT SERVO-ACTUATOR 2

20 23 622-8114-002 4V792 AUTOMATIC ANTENNA COUPLER 2

21 23 822-1468-110 4V792 VHF COMM TRANSCEIVER 3

22 23 822-1468-310 4V792 VHF 4000 3

23 23 ACP2531 F6168 AUDIO CONTROL PANEL 3

24 23 AH2542CA02 F6168 ATTENDANT HANDSET 3

25 23 CAU2583AC01 F6168 REMOTE CONTROL AUDIO UNIT 3

26 23 PA2532AB01 F6168 PASSENGER ADDRESS AMPLIFIER 1

27 24 1-002-0102-2173 10933 STATIC INVERTER 1

28 24 102-003-11 F0296 GENERATOR CONTROL UNIT 4

29 24 103-003-2 F0296 HALL EFFECT CURRENT 4

30 24 105-003-2 F0296 BUS POWER CONTROL UNIT 4

31 24 20032-2 F0296 AC GENERATOR 3

32 24 2432-30 F0296 GENERATOR CONTROL UNIT 2

33 24 8260-123 F0296 DC STARTER GENERATOR 6

34 24 945-12 F0296 BUS POWER CONTROL UNIT 2

of 69

35 24 F11NA3121 F0296 TRANSFORMER RECTIFIER UNIT 1

36 25 01N65900 F6614 EMERGENCY LOCATOR BEACON 2

37 25 01N65920 F6614 STAND ALONE ELT 2

38 25 301-2800 F0656 TOILET-PSU 2

39 25 3A063-0035-05-5 K9075 PILOT SEAT 2

40 25 3A063-0036-05-5 K9075 COPILOT SEAT 2

41 25 3A063-0079-03-4 K9075 PILOT SEAT 2

42 25 3A063-0080-03-4 K9075 COPILOT SEAT 2

43 26 51653-152 K1536 FIRE DETECTION CONTROL UNIT 1

44 26 B40NA1500 F1958 FAN SMOKE DETECTION 3

45 26 CGDU2200-00 F4885 SMOKE DETECTOR 2

46 26 FR3123 F9211 SMOKE DETECTOR 2

47 26 FR3222 F9211 SMOKE DETECTOR 2

48 27 4128-2 F0396 RELEASABLE CENTRING UNIT 2

49 27 8236-3 F6151 TRIM ACTUATOR 2

50 27 BHC1000-3 F1688 FLAP VALVE BLOCK 1

51 27 BHC1021 F1688 SPOILER VALVE BLOCK 1

52 27 C16363AA F9111 ALPHA PROBE 3

53 27 FE205-000 F0221 RUDDER DAMPER 1

54 28 1040B25-1 F0218 CROSSFEED VALVE 1

55 28 242082-4 F0422 MOTIVE FLOW VALVE 1

56 28 2940 F0422 ACTUATOR-FUEL CROSSF 1

57 28 738821-1-2 F0553 FUEL CONTROL UNIT 2

58 28 C11VQ0020 F1688 FUEL ELECTROPUMP 2

59 29 291F01500-001 A3004 LOW LEVEL SWITCH 1

60 29 4019501 D0079 AC MOTOR DRIVEN PUMP 2

61 29 42053 D0079 DC HYDRAULIC PUMP 2

62 30 0871BN3-5 59885 ICE DETECTOR 2

63 30 624992-3 70210 MAIN WINDSHIELD CONTROLLER 3

64 30 B03AA1040 F1958 DUAL DISTRIBUTOR VALVE 2

65 30 B03AA1060 F1958 DUAL DISTRIBUTOR VALVE 2

66 30 B14GF1503 F1958 REGULATOR/SHUTOFF VALVE 4

67 30 B47CA1090 F1958 SHUT OFF VALVE 1

68 30 E37055M0D1 K5459 ANTI-ICING CONTROLLER 2

69 30 E42084-1 K5459 LEFT ELEVATOR HORN 1

70 30 E42084-2 K5459 RIGHT ELEVATOR HORN 1

71 30 E42085 K5459 RUDDER HORN 1

72 30 E42086-1 K5459 LEFT AILERON HORN 1

73 30 E42086-2 K5459 RIGHT AILERON HORN 1

74 31 046-10108-990 FAPB0 ATTENDANT PANEL 1

75 31 2100-4045-00 06141 DIGITAL FLT DATA RECORDER 3

76 31 261065723-1000 FAQ15 MPC-ED36 2

77 31 APE4200 F0479 CLOCK 1

78 31 C12428EB F9111 EFIS CONTROL PANEL RH SIDE 2

79 31 C12428FB F9111 EFIS CONTROL PANEL LH SIDE 2

80 31 C19736AA01 F9111 INTEGRATED AVIONICS DISPLAY 2

81 31 K9321050A031 B1224 MULTIPURPOSE CONTROL & DISPLAY UNIT 1

of 69

82 31 LA4E20607HM0100 F6198 MULTIFUNCTION COMPUTER 2

83 32 140-071 81982 WHEEL SPEED TRANSD ASSY 1

84 32 201-25109Y00 A0359 PARKING VALVE 1

85 32 201-25112Y00 A0359 NORMAL METERING VALVE 1

86 32 39-739-3 81982 ANTISKID VALVE MANIFOLD 1

87 32 42-801-1 81982 ANTISKID CONTROL UNIT 1

88 32 C24295350 F6137 SOLENOID VALVE NLG 1

89 32 C24483010 F6137 SWIVEL SELECTOR VALVE 1

90 32 C24568000-5 F6137 DIFF CONTROL SELECT VALVE 1

91 32 C24589000-2 F6137 UP LOCK BOX 1

92 33 03-1802-2001-1 S5289 ANTICOLL. LIGHT 4

93 33 04-1505-1429 S5289 ANTICOLL.LTG POWER SPLY UNIT 4

94 33 292-13 F0479 STROBE LIGHTS 4

95 33 292-25 F0479 POWER SUPPLY UNIT 4

96 33 301-3100 F0656 EMERGENCY POWER SUPPLY 4

97 33 4213966 F0214 LIGHT-LOGO 2

98 33 4319586 F0214 LANDING LIGHT 4

99 33 APS40-1 A2829 ANTICOLL.LTG POWER SPLY UNIT 4

100 33 R25-1M2CW A2829 ANTICOLL. LIGHT 4

101 34 102EH2EB K5459 TOTAL AIR TEMP SENSOR 2

102 34 261500123-0501 F6151 ATTITUDE HEADING REF UNIT 3

103 34 49380 F9111 PROBE-PITOT 3

104 34 7008471-688 58960 WX.RADAR CONTROL PANEL 1

105 34 7021450-601 55939 RADAR RECEIVER TRANSCEIVER 2

106 34 7510700-961 1WYD3 ATC TRANSPONDER 2

107 34 822-1465-001 4V792 VOR/ILS/MKR.RECEIVER 2

108 34 822-1466-001 4V792 DME TRANSCEIVER 3

109 34 9000000-10309 1WYD3 T2CAS COMPUTER 3

110 34 9599-607-19993 F0057 RADIO-ALTIMETER TRANSCEIVER 2

111 34 C16786VA02 F9111 INTEGRATED ELEC.STAND-BY EQUIP 2

112 34 C17053MA01 F9111 AIR DATA COMPUTER 2

113 34 C17149HA01 F9111 GPS RECEIVER 1

114 36 1-1-04-0677 F0063 DUCT DISCHARGE DOWNSTREAM VALV 1

115 36 3214958-2 70210 PRESSURE REG & S/O VALVE 2

116 36 3289704-1 70210 BLEED AIR SHUTOFF VALVE 1

117 36 3290196-2 70210 ISOLATION VALVE 1

118 42 C13158MA01 F9111 INTEGRATED CORE PROCESSING MOD 2

119 42 C13159MA F9111 IOM - S 2

120 42 C13160MA01 F9111 CAC SWM 2

121 42 C13202BA F9111 IOM - DATA CONCENTRATOR 2

122 61 4122-006009 81833 MOTOR AND PUMP ASSEMBLY 2

123 61 814620-2 73030 OVERSPEED GOVERNOR 2

124 61 816332-5-401 73030 ELECTRONIC PROPELLER CONTROL 2

125 61 C146440-2 73030 PROPELLER VALVE MODULE 2

126 61 EV5247-2-00 F2805 ELECTROVALVE 1

127 61 R815505-6 73030 PROPELLER BLADE 6

128 73 TM512-204 F0755 FUEL FLOW TRANSMITTER 3

of 69

129 77 5677-705-80-10 F9111 HP SPEED INDICATOR 1

130 77 5678-559-80-10 F9111 INTERTURBINE TEMP.INDICATOR 2

131 79 26659-5312 U6578 OIL COOLER FLAP ACTUATOR 2

132 79 26659-5313 U6578 THERMOSTATIC VALVE 1

133 79 48114-1030 U6578 OIL COOLER 2

134 72 1012974-4-002 00198 CONTROL ENGINE ELECTRONIC 3

135 72 3039609 00198 EXCITER-IGNITION 4

136 72 3055635-01 00198 EJECTOR-FUEL WASTE 2

137 72 3075961-04 00198 VALVE ASSY-INTERCOMPRESSOR BLEED 2

138 72 3076200-08 00198 VALVE ASSY-INTERCOMPRESSOR BLEED 2

139 72 3078166-01 00198 AUTOFEATHER CONTROL 2

140 72 3117178-08 00198 FUEL CONTROL-MECHANICAL 3

141 72 3118263-01 00198 COOLER-OIL,FUEL COOLED 2

142 72 3118511-01 00198 FLOW DIVIDER AND DUMP VALVE 3

143 72 3118642-01 00198 VALVE ASSY-SERVO 2

144 72 3120075-02 00198 HEATER-OIL TO FUEL 2

145 72 3120249-02 00198 PUMP-FUEL 2

146 72 FE201-6-002 00198 BRAKE HYDROMECHANICAL ASSY 2

147 57 S5741201600210 FB429 LEADING EDGE LH ZONE 511 1

148 57 S5741201600310 FB429 LEADING EDGE RH ZONE 511 1

149 57 S5741202200200 FB429 LEADING EDGE (LH, RH same P/N) ZONE 512 2

150 57 S5741211700210 FB429 LEADING EDGE LH (RIB 13-19) 1

151 57 S5741211700310 FB429 LEADING EDGE RH (RIB 13-19) 1







158 55 S5517400000851 FB429 HORIZONTAL STABILISER (LH) 1

159 55 S5517400000951 FB429 HORIZONTAL STABILISER (RH) 1

160 54 S5411265600800 FB429 GAS PATH DUCT ASSY 2

161 54 S5411275900401 FB429 AIR INTAKE ASSY 2

162 73 3079013-01 00198 Fuel Nozzle Adapter 20



of 69


COVERING LETTER FOR SUBMISSION OF TECHNICAL BID (ON BIDDERS LETTER HEAD)

Annexure E


To,


Alliance Air


IGI Airport, Terminal-1, New Delhi 110037 Ref: _______________ Dated: _____________

Tender for appointment of Service Provider(s) to provide integrated support forATR 72-212A (600 version) Aircraft Components on Lease basis

Dear Sir,

With reference to Alliance Air tender no. AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016, for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis, we hereby submit our Technical Bid for the same & enclose the following duly filled in:

S. No. Details

1 Company profile and technical information – Annexure ‘F’

2 Bidder Compliance to Pre-qualification Criteria – Annexure ‘G’

3 EMD amount of USD 5000 (Bidder to mention instrument Details of the EMD amount)

4 Variance Statement - Annexure ‘J’(As applicable)

5 Integrity Pact – Annexure ‘K’

It is certified that we have studied and understood the Terms and conditions specified at Annexure ‘A’, as well as the Functional requirements detailed at Annexure ‘C’, of the Tender No. AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016, for integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis, and we agree to abide by the same unconditionally. Further, we certify that all the information as submitted by us in our Bid is true and correct as on date of submission of the Bid. Further, we shall indemnify Alliance Air in the event of any loss/damage caused to AASL on account of false, misleading and/or incorrect information in our Bid. We have also understood and agree that we will be committed for delivering local support in India in respect of all requirements in this Tender, consisting of round the clock service on 24X7 basis to Alliance Air, at its facility at New Delhi, including safe-keeping of the items,

of 69

handling of components to and from repair shop, manpower charges, costs for obtaining passes from the Airport Operator M/s DIAL, Govt. taxes and levies within India and that no other separate charge would be admissible other than that has been quoted herein Annexure ‘I’

We also agree to the terms & conditions of the Tender detailed in Annexure ‘A’ and hereby

confirm that we have submitted our offer in full for all of the components as per the list attached at Annexure ‘D’

Thanking you,

AUTHORISED SIGNATORY

Signature: ________________________ Name: ________________________ Designation: _______________________ Company: ________________________

Encl: All relevant documentation in support of our Technical Bid response.

of 69


COMPANY PROFILE AND TECHNICAL INFORMATION (ON BIDDERS LETTER HEAD)

Annexure F



Name of the Company: _________________________________ Postal Contact Address: _________________________________ _________________________________

Contact Person: _________________

Phone No. _______________________

Fax No. _______________________ Mobile: _______________________

E-mail: _______________________ Yearly Turn-over (in US Dollars - million), of the Company which is quoting / yearly turn-over of the parent Group Co., if applicable: _________________________________ Bank A/c No. and other Details for _________________________________ Wire transfer

_________________________________ Capability Details _________________________________ (Attach a list if more space is required). List few major Airlines or Agencies as major clients: _________________________________ Provide Contact address & Names _________________________________ Of three major Airlines or Agencies for reference. _________________________________

of 69

ADDITIONAL INFORMATION REGARDING THE FIRM AND ITS ACTIVITIES

Date of incorporation of the firm

Main activities of the firm

Turnover derived there from the main activities

Any other activities of the firm

Whether the firm is a manufacturer/distributor/stockist/trader/repair& OH shop

Details of tie-ups and affiliations with other firms/repair-OH shops.

Details of branches & existing network

Details of staff employed

Details on warehousing & stocking facilities in terms of warehouse size and the line items held.

Certification and approvals obtained for firm (with copies to be enclosed thereof). A quality manual of your firm may be placed with us for our scrutiny.

Whether the firm existed in its original name since inception

Whether faced any merger/acquisition/take-over action.

Last 3 years turnover Details:

Whether faced any insolvency or chapter 6 proceedings (a certificate to that effect to be enclosed from the firm’s certified Auditors)

Whether company has availed of any overdraft facility from any bank (A certificate from the certified auditor to be enclosed)

Experience in the Asian Aviation Market:

Experience in the Indian Aviation market:

Experience of the door-to-door component support

It is certified that the above information is true to the best of my knowledge.



of 69


BIDDER COMPLIANCE TO PRE-QUALIFICATION CRITERIA Annexure G


This Tender hereby specifies the following pre-qualification criteria governing the Tender process. Bidders are required to meet the pre-qualification criteria’s stated in this document, in order to qualify in the technical evaluation exercise.

Bidders may kindly note that the Commercial Bids of only those Bidders would be opened, who qualify the technical evaluation exercise.

S. No

Pre-Qualification Requirements Condition Bidder

Response YES / NO

1 The Bidder must specialize in Aircraft parts supply and support, duly approved by FAA/EASA, which must be duly supported by relevant documentation. MANDATORY

2 The Bidder must be in business since the past 5 years and the company must have formed not later than 01.01.2010. The Certificate of Incorporation / MOU / COI / equivalent document should be submitted in support of this condition.

MANDATORY

3

The Bidder must have a turnover in excess of USD 10 million per annum, for the

previous two years i.e. Financial year 2013-2014 and 2014 – 2015, duly supported

by the self declaration of the Bidders.

MANDATORY

4

The Bidder should have provided successful component support for at least two

major airlines, operating ATR 72-212A (600 VERSION)Aircraft fleet, in the preceding

5 years. (Duly supported by documentation like copies of contracts / PO‘s etc)

MANDATORY

5 The Bidder agrees to provide integrated component support to Alliance Air in response to this Tender, consisting of the following 4 types of services:

MANDATORY

5a

The Bidder agrees to Provide and maintain a pre-determined quantity of the serviceable components in New/ Freshly Overhauled Condition for the lease-in ATR 72-212A (600 VERSION) Aircraft, at Alliance Air facilities, New Delhi, India, as per item part numbers and its respective quantities given in the Annexure ‘D’ for which lease charges would be payable by Alliance Air.

MANDATORY

5b

The prospective Bidder agrees to carry out the replacement shipment of the component within 72 hours, upon issue of the same from the shelf of Alliance Air New Delhi.

MANDATORY

5c The prospective Bidder agrees to repair of the component, through its OEM/FAA/EASA affiliated/approved repair shop.

MANDATORY

5d The prospective Bidder agrees to provide, to & fro logistic support for components including packing, forwarding, and customs clearance, in short, door to door service for each component as per list.

MANDATORY

6

The Bidder agrees to offer in response to this Tender, its offer price consisting of the following parts:

d) Lease charges as a percentage of the cost of the unit for each item offered by the Bidder in New / Freshly Overhauled Condition.

e) The standard exchange price (in %) of the unit cost for each item offered by the Bidder.

MANDATORY

of 69

f) The capping on the repair charge for each item. (It is mandatory for the Bidders to agree to the above concept of pricing only and no other alternate options would be considered)

7

The Bidder agrees to offer a warranty of 12 months or as specified by the OEM/repair shop from the date of stocking of the component in New Delhi, duly applicable for both the initial positioned unit and subsequent repaired components, for all the components as per list enclosed at Annexure -D

MANDATORY

8 The Bidder agrees to bear the freight charges both ways for removal of any component, during the warranty period. MANDATORY

9

The Bidder agrees that all the components supplied against the contract would be accompanied by the FAA/EASA documents, and that such component would be INCIDENT FREE and have BACK TO BIRTH TRACEABILITY and life of component supplied should NOT BE MORE THAN 110% OF THE LIFE OF AIRCRAFT on which the component is required to be installed. Bidders to note that Alliance Air QC may review all such documentations prior to authorizing the shipment from the Bidders end. In case of exigencies , if the life of the component being supplied by the service provider is more than 110% of the life of the aircraft on which it is to be installed, then the service provider has to provide a replacement for such components free of charge to AASL within six (06) months in order to meet this requirement.

MANDATORY

10

The Bidder agrees that in order to be eligible for levy of the exchange fee, the replacement components must be shipped from the Bidder facility within 72 hours of issue of the corresponding component from the warehouse in New Delhi.

MANDATORY

11 The Bidder agrees that the replacement component must be shipped within 24 hours in case of AOG requests from Alliance Air. MANDATORY

12

The Bidder agrees that Alliance Air will have the option to review float for each of the item, after completion of every six months and may seek removal of certain components or reduction of quantities. The prospective Bidder further agrees to proportionately reduce the lease charges, from its monthly billing, for the items removed from the pool of stock items.

MANDATORY

13

The Bidder agrees that Alliance Air will have the option of adding additional components to the list. The new item price of such additional components will be as per fair market value duly assessed by evaluating quotes from at least three reputed suppliers. In case of increase in float of existing item, the contracted value of the item will be applicable to the additional float as well.

MANDATORY

14

The Bidder agrees that Alliance Air will have the option to return an issued item with a serviceable tag in case of non-usage or in case where the Aircraft snag reoccur within 48 hours of installation of the unit. The exchange fee will not apply in such cases.

MANDATORY

15 The Bidder agrees that Alliance Air will have the option of repairing / inspecting the unit at its own facilities wherever possible and return the unit to Bidder stock with Air India serviceable tag.

MANDATORY

16 The Bidder agrees that Alliance Air will however bear any costs related to obtaining FAA/JAA certificate for such component at mutually acceptable repair stations at the termination of the contract if desired by Bidder.

MANDATORY

17 The Bidder agrees that it itself will be solely responsible for delivering round the clock service on 24X7 basis to Alliance Air, at its facility at New Delhi, at Bidders own cost including safe-keeping of the items, handling of components to and from repair shop, manpower charges, costs for obtaining passes from the Airport Operator M/s DIAL, Govt. taxes and levies within India and that no other separate charge would be admissible other than that stated at point 6 herein.

MANDATORY

of 69

18 The Bidder agrees that Alliance Air would provide security deposit in the form of SBLC, equivalent to three months lease rent and there will be no upfront payment.

MANDATORY

19

The Bidder agrees to the following conditions in terms of compliance with the

prevailing tax laws in India.

1. For Tax deduction at Source(TDS) /Withholding Tax liabilities under Indian

Income tax laws for the non-resident bidding entity, the Bidder has to

undertake to provide the following declarations/documents to AASL:

a) Indian PAN (Permanent Account Number) of the selected entity, issued by Indian Income Tax authorities, under Section 206AA of the Indian Income Tax Act of 1961, would be required to be provided / obtained by the successful Bidder with whom Lease Agreement shall be finalized. In case the non-resident foreign Bidder does not provide such Indian PAN, TDS applicable as per Indian Laws would be deductible from the amounts payable for which tax deducted certificates in the applicable forms as per Indian Income tax laws would be provided by AASL to the selected entity.

b) Tax Residency Certificates from the local authorities, where selected entity is resident and assessed for income and such required forms, such as Form 10(F) as per Indian Income tax rules would be mandatorily required to be obtained by the successful Bidder with whom Lease Agreement shall be finalized. Such Tax residency certificate has to be obtained and provided to AASL for every year during the contract considering that the Indian tax laws recognize financial and accounting year beginning from 1st April and ending on 31st March.

c) No Permanent Establishment (PE) Certificate In the addition to the above documents, the successful Bidder would periodically be required to provide a No Permanent Establishment certificate to declare/undertake that they do not have any office/business establishment in India.

2. For Service Tax liabilities:

Service Tax Registration No. of the selected entity, issued by Indian Service Tax authorities, would be required to be provided / obtained by the successful Bidder with whom the contract shall be finalized as the applicable service tax, presently @14.5%isa liability of the SERVICE PROVIDER(S) and the same would be required to be deposited with the relevant Indian service tax authorities in India by such selected entity.

3. Royalty charges by the Airport operator DIAL: The components listed herein are for storage in AASL’sLine Maintenance Stores at T-3 which would be manned on 24X7 basis by the manpower provided by the proposed Service Provider(s). This would therefore attract the Royalty Charges currently levied @ 13% by DIAL which would be applicable on all the services rendered by the Service Provider(s). Such charges would be borne by the Service Provider(s) only, but would be reimbursed by Alliance Air upon being invoiced on a monthly basis by the Service Provider(s) along-with the other applicable charges.

MANDATORY

Note: 1. The reference to the component means to each of the component as per the list of components enclosed

at Annexure – D.



of 69


To, Executive Director (Engg.)

Alliance Air


IGI Airport, Terminal-1, New Delhi 110037

Ref: _______________ Dated: _____________

Tender for appointment of Service Provider(s) to provide integrated support For ATR 72-212A (600 version) Aircraft Components on Lease basis

Dear Sir,

With reference to Alliance Air tender No. AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016, for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis, we hereby submit our best and firm Commercial Bid for the same in the prescribed format at Annexure ‘I’ of the Tender document.

We have also understood and agree that we will be committed for delivering local support

in India in respect of all requirements in this Tender, consisting of round the clock service on 24 X 7 basis to Alliance Air, at its facility at New Delhi, including safe-keeping of the items, handling of components to and from repair shop, manpower charges, costs for obtaining passes from the Airport Operator M/s DIAL, Govt. taxes and levies within India and that no other separate charge would be admissible other than that has been quoted herein Annexure ‘I’.

We also agree to the terms & conditions of your Tender detailed in Annexure ‘A’, including

that the payments are subjected to conditions specified at 5A-iv (a), (b), (c), 5A-v and 5A-vi, therein.

Thanking you,




COVERING LETTER FOR SUBMISSION OF COMMERCIAL (PRICE) BID (ON BIDDERS LETTER HEAD)

Annexure H

of 69


COMMERCIAL (PRICE) BID (ON BIDDERS LETTER HEAD)

Annexure I


We hereby submit our best and firm Commercial (Price) Bid in response to the Tender as per below:

SNO PNR ATA MFR ADT Homebase Kit Qty Required

Condition Offered

UNIT RATE USD/

LEASE CHARGE

PER ANNUM AS % OF

UNIT RATE

STANDARD EXCHANGE

AS % OF UNIT RATE

REPAIR CHARGE CAPPING AS % OF

UNIT RATE

1 2095F040800 21 F1958 ELETTROPN OUTFLOW VALVE 2

2 2096H040800 21 F1958 PNEUMATIC OUTFLOW VALVE 3

3 2205120-4 21 70210 AIR CYCLE UNIT 2

4 22250F100200 21 F1958 DIGITAL CONTROLLER 1

5 3214960-3 21 59364 PRESSURE REG AND S/O VALVE 2

6 41173C010000 21 F1958 CHECK VALVE 2

7 5427-404-80-10 21 F9111 DUAL TEMPERATURE INDICATOR 2

8 5618C000-002 21 K0872 T.I.C. VALVE 2

9 624820-1 21 70210 CONTROLLER-TEMP 1

10 8535C000 21 K0872 CONDENSER 1

11 8571C000 21 K0872 EXCHANGER 1

12 979142-6-1 21 70210 VLV-SHUTOFF TURBOFAN 2

of 69

13 979990-1 21 70210 TEMPERATURE CONTROL VALVE 2

14 AE1012B00 21 F4957 RECIRCULATION FAN ASSY 2

15 AT0518A01 21 F4957 GROUND COOLING FAN 2

16 EVTA1925B 21 F4957 E/E COOLING FAN 2

17 PRE1010 21 S3960 AMBIANT PRESSURE UNIT 2

18 C12424CC 22 F9111 FLIGHT GUIDANCE CONTROL PANEL 1

19 C18427AA 22 F9111 AUTO PILOT SERVO-ACTUATOR 2

20 622-8114-002 23 4V792 AUTOMATIC ANTENNA COUPLER 2

21 822-1468-110 23 4V792 VHF COMM TRANSCEIVER 3

22 822-1468-310 23 4V792 VHF 4000 3

23 ACP2531 23 F6168 AUDIO CONTROL PANEL 3

24 AH2542CA02 23 F6168 ATTENDANT HANDSET 3

25 CAU2583AC01 23 F6168 REMOTE CONTROL AUDIO UNIT 3

26 PA2532AB01 23 F6168 PASSENGER ADDRESS AMPLIFIER 1

27 1-002-0102-2173 24 10933 STATIC INVERTER 1

28 102-003-11 24 F0296 GENERATOR CONTROL UNIT 4

29 103-003-2 24 F0296 HALL EFFECT CURRENT 4

30 105-003-2 24 F0296 BUS POWER CONTROL UNIT 4

31 20032-2 24 F0296 AC GENERATOR 3

32 2432-30 24 F0296 GENERATOR CONTROL UNIT 2

33 8260-123 24 F0296 DC STARTER GENERATOR 6

34 945-12 24 F0296 BUS POWER CONTROL UNIT 2

35 F11NA3121 24 F0296 TRANSFORMER RECTIFIER UNIT 1

36 01N65900 25 F6614 EMERGENCY LOCATOR BEACON 2

37 01N65920 25 F6614 STAND ALONE ELT 2

38 301-2800 25 F0656 TOILET-PSU 2

39 3A063-0035-05-5 25 K9075 PILOT SEAT 2

of 69

40 3A063-0036-05-5 25 K9075 COPILOT SEAT 2

41 3A063-0079-03-4 25 K9075 PILOT SEAT 2

42 3A063-0080-03-4 25 K9075 COPILOT SEAT 2

43 51653-152 26 K1536 FIRE DETECTION CONTROL UNIT 1

44 B40NA1500 26 F1958 FAN SMOKE DETECTION 3

45 CGDU2200-00 26 F4885 SMOKE DETECTOR 2

46 FR3123 26 F9211 SMOKE DETECTOR 2

47 FR3222 26 F9211 SMOKE DETECTOR 2

48 4128-2 27 F0396 RELEASABLE CENTRING UNIT 2

49 8236-3 27 F6151 TRIM ACTUATOR 2

50 BHC1000-3 27 F1688 FLAP VALVE BLOCK 1

51 BHC1021 27 F1688 SPOILER VALVE BLOCK 1

52 C16363AA 27 F9111 ALPHA PROBE 3

53 FE205-000 27 F0221 RUDDER DAMPER 1

54 1040B25-1 28 F0218 CROSSFEED VALVE 1

55 242082-4 28 F0422 MOTIVE FLOW VALVE 1

56 2940 28 F0422 ACTUATOR-FUEL CROSSF 1

57 738821-1-2 28 F0553 FUEL CONTROL UNIT 2

58 C11VQ0020 28 F1688 FUEL ELECTROPUMP 2

59 291F01500-001 29 A3004 LOW LEVEL SWITCH 1

60 4019501 29 D0079 AC MOTOR DRIVEN PUMP 2

61 42053 29 D0079 DC HYDRAULIC PUMP 2

62 0871BN3-5 30 59885 ICE DETECTOR 2

63 624992-3 30 70210 MAIN WINDSHIELD CONTROLLER 3

64 B03AA1040 30 F1958 DUAL DISTRIBUTOR VALVE 2

of 69

65 B03AA1060 30 F1958 DUAL DISTRIBUTOR VALVE 2

66 B14GF1503 30 F1958 REGULATOR/SHUTOFF VALVE 4

67 B47CA1090 30 F1958 SHUT OFF VALVE 1

68 E37055M0D1 30 K5459 ANTI-ICING CONTROLLER 2

69 E42084-1 30 K5459 LEFT ELEVATOR HORN 1

70 E42084-2 30 K5459 RIGHT ELEVATOR HORN 1

71 E42085 30 K5459 RUDDER HORN 1

72 E42086-1 30 K5459 LEFT AILERON HORN 1

73 E42086-2 30 K5459 RIGHT AILERON HORN 1

74 046-10108-990 31 FAPB0 ATTENDANT PANEL 1

75 2100-4045-00 31 06141 DIGITAL FLT DATA RECORDER 3

76 261065723-1000 31 FAQ15 MPC-ED36 2

77 APE4200 31 F0479 CLOCK 1

78 C12428EB 31 F9111 EFIS CONTROL PANEL RH SIDE 2

79 C12428FB 31 F9111 EFIS CONTROL PANEL LH SIDE 2

80 C19736AA01 31 F9111 INTEGRATED AVIONICS DISPLAY 2

81 K9321050A031 31 B1224 MULTIPURPOSE CONTROL & DISPLAY UNIT 1

82 LA4E20607HM0100 31 F6198 MULTIFUNCTION COMPUTER 2

83 140-071 32 81982 WHEEL SPEED TRANSD ASSY 1

84 201-25109Y00 32 A0359 PARKING VALVE 1

85 201-25112Y00 32 A0359 NORMAL METERING VALVE 1

86 39-739-3 32 81982 ANTISKID VALVE MANIFOLD 1

87 42-801-1 32 81982 ANTISKID CONTROL UNIT 1

88 C24295350 32 F6137 SOLENOID VALVE NLG 1

89 C24483010 32 F6137 SWIVEL SELECTOR VALVE 1

90 C24568000-5 32 F6137 DIFF CONTROL SELECT VALVE 1

91 C24589000-2 32 F6137 UP LOCK BOX 1

92 03-1802-2001-1 33 S5289 ANTICOLL. LIGHT 4

of 69

93 04-1505-1429 33 S5289 ANTICOLL.LTG POWER SPLY UNIT 4

94 292-13 33 F0479 STROBE LIGHTS 4

95 292-25 33 F0479 POWER SUPPLY UNIT 4

96 301-3100 33 F0656 EMERGENCY POWER SUPPLY 4

97 4213966 33 F0214 LIGHT-LOGO 2

98 4319586 33 F0214 LANDING LIGHT 4

99 APS40-1 33 A2829 ANTICOLL.LTG POWER SPLY UNIT 4

100 R25-1M2CW 33 A2829 ANTICOLL. LIGHT 4

101 102EH2EB 34 K5459 TOTAL AIR TEMP SENSOR 2

102 261500123-0501 34 F6151 ATTITUDE HEADING REF UNIT 3

103 49380 34 F9111 PROBE-PITOT 3

104 7008471-688 34 58960 WX.RADAR CONTROL PANEL 1

105 7021450-601 34 55939 RADAR RECEIVER TRANSCEIVER 2

106 7510700-961 34 1WYD3 ATC TRANSPONDER 2

107 822-1465-001 34 4V792 VOR/ILS/MKR.RECEIVER 2

108 822-1466-001 34 4V792 DME TRANSCEIVER 3

109 9000000-10309 34 1WYD3 T2CAS COMPUTER 3

110 9599-607-19993 34 F0057 RADIO-ALTIMETER TRANSCEIVER 2

111 C16786VA02 34 F9111 INTEGRATED ELEC.STAND-BY EQUIP 2

112 C17053MA01 34 F9111 AIR DATA COMPUTER 2

113 C17149HA01 34 F9111 GPS RECEIVER 1

114 1-1-04-0677 36 F0063 DUCT DISCHARGE DOWNSTREAM VALV 1

115 3214958-2 36 70210 PRESSURE REG & S/O VALVE 2

116 3289704-1 36 70210 BLEED AIR SHUTOFF VALVE 1

117 3290196-2 36 70210 ISOLATION VALVE 1

118 C13158MA01 42 F9111 INTEGRATED CORE PROCESSING MOD 2

119 C13159MA 42 F9111 IOM - S 2

120 C13160MA01 42 F9111 CAC SWM 2

of 69

121 C13202BA 42 F9111 IOM - DATA CONCENTRATOR 2

122 4122-006009 61 81833 MOTOR AND PUMP ASSEMBLY 2

123 814620-2 61 73030 OVERSPEED GOVERNOR 2

124 816332-5-401 61 73030 ELECTRONIC PROPELLER CONTROL 2

125 C146440-2 61 73030 PROPELLER VALVE MODULE 2

126 EV5247-2-00 61 F2805 ELECTROVALVE 1

127 R815505-6 61 73030 PROPELLER BLADE 6

128 TM512-204 73 F0755 FUEL FLOW TRANSMITTER 3

129 5677-705-80-10 77 F9111 HP SPEED INDICATOR 1

130 5678-559-80-10 77 F9111 INTERTURBINE TEMP.INDICATOR 2

131 26659-5312 79 U6578 OIL COOLER FLAP ACTUATOR 2

132 26659-5313 79 U6578 THERMOSTATIC VALVE 1

133 48114-1030 79 U6578 OIL COOLER 2

134 1012974-4-002 72 00198 CONTROL ENGINE ELECTRONIC 3

135 3039609 72 00198 EXCITER-IGNITION 4

136 3055635-01 72 00198 EJECTOR-FUEL WASTE 2

137 3075961-04 72 00198 VALVE ASSY-INTERCOMPRESSOR BLEED 2

138 3076200-08 72 00198 VALVE ASSY-INTERCOMPRESSOR BLEED 2

139 3078166-01 72 00198 AUTOFEATHER CONTROL 2

140 3117178-08 72 00198 FUEL CONTROL-MECHANICAL 3

141 3118263-01 72 00198 COOLER-OIL,FUEL COOLED 2

142 3118511-01 72 00198 FLOW DIVIDER AND DUMP VALVE 3

143 3118642-01 72 00198 VALVE ASSY-SERVO 2

144 3120075-02 72 00198 HEATER-OIL TO FUEL 2

145 3120249-02 72 00198 PUMP-FUEL 2

146 FE201-6-002 72 00198 BRAKE HYDROMECHANICAL ASSY 2

147 S5741201600210 57 FB429 LEADING EDGE LH ZONE 511 1

of 69

148 S5741201600310 57 FB429 LEADING EDGE RH ZONE 511 1

149 S5741202200200 57 FB429 LEADING EDGE (LH, RH same P/N)

ZONE 512 2

150 S5741211700210 57 FB429 LEADING EDGE LH (RIB 13-19) 1

151 S5741211700310 57 FB429 LEADING EDGE RH (RIB 13-19) 1







158 S5517400000851 55 FB429 HORIZONTAL STABILISER (LH) 1

159 S5517400000951 55 FB429 HORIZONTAL STABILISER (RH) 1

160 S5411265600800 54 FB429 GAS PATH DUCT ASSY 2

161 S5411275900401 54 FB429 AIR INTAKE ASSY 2

162 3079013-01 73 00198 Fuel Nozzle Adapter 20



Note:

a) The condition of all Initial positioning items may vary eg. New / Freshly Overhauled which has to be specified. b) All the charges offered by the Bidder must be in USD only. c) Except for the Unit Rates for each of the 164 items, which is to be quoted in absolute terms, all the other charges like lease charges, standard exchange charges

and repair charge capping must be offered as a percentage of the Unit Rates offered. d) Price quoted must be firm & fixed for 10 years from the commencement of contract as well as the extension period of 2 years thereafter.

of 69

EVALUATION OF THE COMMERCIAL BID – FOR INFORMATION OF THE BIDDERS: Bidders are required to offer their best and firm rates for the unit rates of all the components listed in Annexure-‘D’. as well as the lease charge (%), standard exchange (%) and the capping of repair charges (%) in the specified format for Commercial Bid at Annexure-I. LOADING for variation in payment terms: Alliance Air desires that all Bidders agree to the stated payment terms. In case of fixed lease charges, payment shall be made on or before the due date, on monthly basis, on receipt of invoice at least 45 days prior to the due date. In case of other charges, payment shall be made after 45 days of receipt of invoice. The offers from the Bidders would be evaluated and computed for the Total Value of Components Offered & Average % offer for Lease charge (Annual %), average standard exchange (%) and average capping on repair charge (%).The cumulative sum of all these charges would be the final value of the offer for each of the Bidders quoted offer. L-1 offer from amongst all the total offers received would then be decided based on the lowest final value offer received for all 164 items from all the Bidders and evaluated by Alliance Air. The sample method of evaluation is as demonstrated at para 3.16 of Annexure ‘A’

It is certified that we have studied and understood the Terms and conditions as well as the Functional requirements, of the tender No. AASL/ATR72-600/TENDER-2016/076 dated 19th Feb, 2016, for appointment of Service Provider(s) to provide integrated support for ATR 72-212A (600 version) Aircraft Components on lease basis, and we agree to abide by the same unconditionally. Further, we certify that all the information as submitted by us in our Bid is true and correct as on date of submission of the Bid. Further, we shall indemnify Alliance Air in the event of any loss/damage caused to AASL on account of false, misleading and/or incorrect information in our Bid. We have also understood and agree that we will be committed for delivering local support in India in respect of all requirements in this Tender, consisting of round the clock service on 24X7 basis to Alliance Air, at its facility at New Delhi, including safe-keeping of the items, handling of components to and from

of 69

repair shop, manpower charges, costs for obtaining passes from the Airport Operator M/s DIAL, Govt. taxes and levies within India and that no other separate charge would be admissible other than that has been quoted herein Annexure ‘H’. AUTHORISED SIGNATORY

Signature : ____________________

Name : ____________________

Designation : ____________________

Company Seal : ____________________

of 69


To,


Alliance Air


IGI Airport, Terminal-1, New Delhi 110037 Ref: _______________ Dated: _____________ Dear Sir, We would like to submit herewith, the summary of exclusions of the Terms & Conditions of Alliance Air Tender document, which are not acceptable in totality. Such of the terms and conditions are non-financial and shall have no bearing on the Commercial Bid submitted by us.

The terms & conditions, which we offer, will be as follows:

Sr. No.

Para No……………Subject

(AASL Terms & Conditions per Annexure ‘A’)

Revised Terms & Conditions of Bidder/Company.

1

2

3

4


Signature : ____________________

Name : ____________________

Designation : ____________________

Company Seal : ____________________


VARIANCE STATEMENT (ON BIDDERS LETTER HEAD)

Annexure J

of 69


INTEGRITY PACT

THIS INTEGRITY PACT (hereinafter referred to as the “Pact”) is made on this ____ day of __________, 2016 at ___________.

Between

AIRLINE ALLIED SERVICES LIMITED (“AASL”), a fully owned subsidiary of Air India Limited (“AIL”) hereinafter referred to as “the Principal”,

and

hereinafter referred to as “the Bidder/Contractor”

PREAMBLE The Principal intends to award, under laid down organizational procedures, contract(s) for providing integrated support for ATR 72-212A (600 version) Aircraft Components on Lease basis (the “Project”). The Principal values full compliance with all relevant laws of the land, rules, regulations, economic use of resources and of fairness/transparency in its relations with its Bidder(s) and/or Contractor(s). In order to achieve these goals, the Principal will appoint an Independent External Monitor (”Monitor”), 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 for, or the execution of a contract, demand, take, promise for or accept, for self or third person, any material or immaterial benefit which the person is not legally entitled to. The word „take‟ shall also include the past and future.

b) The Principal will, during the Tender process treat all Bidder(s) with equity and

reason. The Principal will in particular, before and during the Tender process, provide to all Bidder(s) the same information and will not provide to any Bidder(s) confidential/additional information through which the Bidder(s) could obtain an advantage in relation to the Tender process or the contract execution.


INTEGRITY PACT

Annexure K

of 69

c) The Principal will exclude from the process all known prejudiced persons and persons who would be known to have a connection or nexus with the Bidder.

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

criminal offence under the IPC/PC Act or the conduct rules of the Principal, or if there be a substantive suspicion in this regard, the Principal will inform the Chief Vigilance Officer and in addition can initiate disciplinary actions.

Section 2 – Commitments of the Bidder(s)/ contractor(s) 1) The Bidder(s)/ Contractor(s) commit themselves to take all measures necessary to

prevent corruption in their dealings with the Principal. He commits himself to observe the following principles during his participation in the Tender process and during the contract execution.

a) The Bidder(s)/ Contractor(s) 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 other 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(s)/Contractor(s) 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(s)/Contractor(s) will not commit any offence under the relevant IPC/PC Act. Further the Bidder(s)/Contractor(s) 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(s)/Contractors(s) of foreign origin shall disclose the name and address of

the agents/representatives in India, if any. Similarly the Bidder(s)/Contractors(s) of Indian Nationality shall furnish the name and address of the foreign principals, if any. Further details as mentioned in the “Guidelines on Indian Agents of Foreign Suppliers” shall be disclosed by the Bidder(s)/Contractor(s).Further, as mentioned in the Guidelines all the payments made to the Indian agent/representative have to be in Indian Rupees only and one agent shall represent only one contractor. Copy of the “Guidelines on Indian Agents of Foreign Suppliers” is placed at (Page nos. 55-56)

e) The Bidder(s)/Contractor(s) 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.

f) This integrity pact shall override the confidentiality clause, if any, in the offer submitted

by the Bidder(s)/Contractor(s) and in the contract entered into by the Principal with the Bidder(s)/Contractor(s).

2) The Bidder(s)/Contractor(s) will not instigate third persons to commit offences or acts

outlined above or be an accessory to such offences.

of 69

Section 3 - Disqualification from Tender process and exclusion from future contracts

If the Bidder(s)/Contractor(s), before award or during execution has committed a transgression through a violation of Section 2, above or in any other form such as to put his reliability or credibility in question, the Principal is entitled to disqualify the Bidder(s)/Contractor(s) from the Tender process or take action as per the procedure mentioned in the “Guidelines on Banning of business dealings”. Copy of the “Guidelines on Banning of business dealings” is placed at Page nos. 57-65.

Section 4 – Compensation for Damages 1) If the Principal has disqualified the Bidder(s) from the Tender process prior to the award

according to Section 3, the Principal is entitled to demand and recover the damages equivalent to Earnest Money Deposit/Bid Security and other actual damages due to the consequential delay.

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 liquidated damages of the contract value or the amount equivalent to Security Deposit/Performance Bank Guarantee.

3) The Bidder(s)/Contractor(s) shall not be entitled to claim from the Principal any amounts

either as damages or otherwise, on account of termination. Section 5 – Previous transgression

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

other Company in any country 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 action can be taken as per the procedure mentioned in “Guidelines on Banning of business dealings”.

Section 6 – Equal treatment of all Bidders/Contractors/Subcontractors 1) The Bidder(s)/ Contractor(s) undertake(s) 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 pacts with identical conditions as this one with all Bidders,

Contractors 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 – Criminal charges against violating Bidder(s)/Contractor(s)/

Subcontractor(s) If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an employee or a representative or an associate of a Bidder, Contractor or Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the same to the Chief Vigilance Officer.

of 69

Section 8 – Independent External Monitor/Monitors 1) The Principal appoints competent and credible Independent External Monitor 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 Pact.

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

perform its functions neutrally and independently. Monitor shall report to the Chairman, AIL.

3) The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access without

restriction to all Project documentation of the Principal including that provided by the Contractor. The Contractor will also grant the Monitor, upon a request and demonstration of a valid interest, unrestricted and unconditional access to his Project documentation. The same is applicable to Subcontractors. The Monitor is under contractual obligation to treat the information and documents of the Bidder(s)/ Contractor(s)/ Subcontractor(s) 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 Contractor. 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 Pact, he will so

inform the management of the Principal and request the management to discontinue or take corrective action, or to take other relevant action. The monitor can in this regard submit non-binding recommendations. 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.

6) The Monitor will submit a written report to the Chairman, AIL within 8 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) Monitor shall be entitled to compensation on the same terms as being extended to /

provided to Independent Directors on the AIL Board.

8) If the Monitor has reported to the Chairman AIL, a substantiated suspicion of an offence under relevant IPC/ PC Act, and the Chairman AIL has not, within the reasonable time taken visible action to proceed against such offence or reported it to the Chief Vigilance Officer, the Monitor may also transmit this information directly to the Central Vigilance Commissioner.

9) The word „Monitor‟ would include both singular and plural. Section 9 – Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Contractor 3 years after the last payment under the contract, and for all other Bidders 12 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 the Board of AIL.

of 69

Section 10 – Other provisions 1) This Pact is subject to the laws of India and place of performance and jurisdiction of this

Pact is the Registered Office of the Principal, i.e., New Delhi, India. 2) Changes and supplements as well as termination notices shall be made in writing. Side

agreements have not been made. 3) If the Contractor is a partnership or a consortium, this Pact must be signed by all partners

or consortium members and in the case of a company by an authorised representative. 4) Should one or several provisions of this Pact turn out to be invalid, the remainder of this

Pact shall remain valid. In this case, the parties will strive to come to an agreement to their original intentions as practicable as possible.

(For & On behalf of the Principal) (For & On behalf of Bidder/ Contractor)

(Office Seal) (Office Seal)

Place -------------- Date --------------

Witness 1:

(Name & Address) _____________________________

_____________________________

_____________________________

_____________________________

Witness 2:

(Name & Address) _____________________________

_____________________________

_____________________________

_____________________________

of 69

GUIDELINES FOR INDIAN AGENTS OF FOREIGN SUPPLIERS

1.0 There shall be compulsory registration of agents for all Global (Open) Tender and

Limited Tender. An agent who is not registered with AASL Departments/Stations shall apply for registration in the prescribed Application –Form.

1.1 Registered agents will file an authenticated Photostat copy duly attested by a Notary

Public/Original certificate of the principal confirming the agency agreement and giving the status being enjoyed by the agent and the commission/remuneration/salary/ retainer ship being paid by the principal to the agent before the placement of order by AASL Departments/Stations.

1.2 Wherever the Indian representatives have communicated on behalf of their principals

and the foreign parties have stated that they are not paying any commission to the Indian agents, and the Indian representative is working on the basis of salary or as retainer, a written declaration to this effect should be submitted by the party (i.e. Principal) before finalizing the order.

2.0 DISCLOSURE OF PARTICULARS OF AGENTS/ REPRESENTATIVES IN INDIA,IF

ANY. 2.1 Bidders of Foreign nationality shall furnish the following details in their offer: 2.1.1 The name and address of the agents/representatives in India, if any and the extent of

authorization and authority given to commit the Principals. In case the agent/representative isa foreign Company, it shall be confirmed whether it is real substantial Company and details of the same shall be furnished.

2.1.2 The amount of commission/remuneration included in the quoted price(s) for such

agents/representatives in India. 2.1.3 Confirmation of the Bidder that the commission/ remuneration if any, payable to his

agents/representatives in India, may be paid by AASL in Indian Rupees only. 2.2 Bidders of Indian Nationality shall furnish the following details in their offers: 2.2.1 The name and address of the foreign principals indicating their nationality as well as

their status, i.e., whether manufacturer or agents of manufacturer holding the Letter of Authority of the principal specifically authorizing the agent to make an offer in India in response to Tender either directly or through the agents/representatives.

2.2.2 The amount of commission/remuneration included in the price (s) quoted by the Bidder

for himself. 2.2.3 Confirmation of the foreign principals of the Bidder that the commission/remuneration,

if any, reserved for the Bidder in the quoted price (s), may be paid by AASL in India in equivalent Indian Rupees on satisfactory completion of the Project or supplies of Stores and Spares in case of operation items.

2.3 In either case, in the event of contract materializing, the terms of payment will provide

for payment of the commission/remuneration, if any payable to the

of 69

agents/representatives in India in Indian Rupees on expiry of 90 days after the discharge of the obligations under the contract.

2.4 Failure to furnish correct and detailed information as called for in paragraph-2.0 above

will render the concerned Bid liable to rejection or in the event of a contract materializing, the same liable to termination by AASL. Besides this there would be a penalty of banning business dealings with AASL or damage or payment of a named sum.

of 69

GUIDELINES ON BANNING OF BUSINESS DEALINGS

CONTENTS

S.No. Description Page(s)

1. Introduction 61

2. Scope 61

3. Definitions 62

4. Initiation of Banning / Suspension 63

5. Suspension of Business Dealings 63-64

6. Ground on which Banning of Business Dealing can be initiated

64-65

7. Banning of Business Dealings 65-66

8. Removal from List of Approved Agencies-Suppliers / Contractors etc.

67

9. Procedure for issuing Show-cause Notice 67

10. Appeal against the Decision of the Competent Authority 67

11. Review of the Decision by the Competent Authority 67-68

12. Circulation of the names of Agencies with whom Business Dealings have been banned

68

of 69

1. Introduction

1.1 AASL, being a Public Sector Enterprise and ‘State’, within the meaning of Article 12 of the Constitution of India, has to ensure preservation of rights enshrined in Chapter III of the Constitution. AASL has also to safeguard its commercial interests. AASL deals with Agencies, who have a very high degree of integrity, commitments and sincerity towards the work undertaken. It is not in the interest of AASL to deal with Agencies who commit deception, fraud or exercise of coercion or undue influence or other misconduct in the execution of contracts awarded / orders issued to them. In order to ensure compliance with the constitutional mandate, it is incumbent on AASL to observe principles of natural justice before banning the business dealings with any Agency.

1.2 Since banning of business dealings involves civil consequences for an Agency

concerned, it is incumbent that adequate opportunity of hearing is provided and the explanation, if tendered, is considered before passing any order in this regard keeping in view the facts and circumstances of the case.

2. Scope

2.1 The General Conditions of Contract (GCC) of AASL generally provide that AASL reserves its rights to remove from list of approved suppliers/contractors or to ban business dealings, if any Agency has been found to have committed misconduct, violation of any law or any term of the agreement and also to suspend business dealings pending investigation. If such provision does not exist in any GCC, the same may be incorporated or be deemed to be incorporated.

2.2 Similarly, in case of sale of material there is a clause to deal with the

Agencies/customers/buyers, who indulge in lifting of material in unauthorized manner. If such a stipulation does not exist in any Sale Order, the same may be incorporated.

2.3 However, absence of such a clause does not in any way restrict the right of

Company (AASL) to take action/decision under these guidelines in appropriate cases.

2.4 The procedure of (i) Removal of Agency from the List of approved suppliers /

contractors; (ii) Suspension and (iii) Banning of Business Dealing with Agencies, has been laid down in these guidelines.

2.5 These guidelines apply to all the Departments/Stations and subsidiaries of

AASL.

2.6 It is clarified that these guidelines do not deal with the decision of the Management not to entertain any particular Agency due to its poor/inadequate performance or for any other reason.

2.7 The banning shall be with effect, i.e., future business dealings.

of 69

3. Definitions

In these Guidelines, unless the context otherwise requires:

i) ‘Party/Contractor/Supplier/Purchaser/Customer’ shall mean and include a public limited company or a private limited company, a firm whether registered or not, partnership, an individual, a cooperative society or an association or a group of persons engaged in any commerce, trade, industry, etc. ‘Party/Contractor/Supplier/Purchaser/Customer’ in the context of these guidelines is indicated as ‘Agency’.

ii) ‘Inter-connected Agency’ shall mean two or more companies having any of the

following features:

a) If one is a subsidiary of the other. b) If the Director(s), Partner(s), Manager(s) or Representative(s) are common; c) If Management is common; d) If one owns or controls the other in any manner, whether directly or

indirectly;

iii) ‘Competent Authority’ and ‘Appellate Authority’ shall mean the following:

a) For Company (entire AIL) Wide Banning The Executive Director – SBU in charge of Procurement shall be the „Competent Authority‟ for the purpose of these guidelines. Chairman, AIL shall be the „Appellate Authority‟ in respect of such cases.

b) In case the foreign supplier is not satisfied by the decision of the First

Appellate Authority, it may approach AIL Board as Second Appellate Authority.

c) For Departments / Stations only

Any officer not below the rank of Executive Director appointed or nominated by the Functional Director / SBU Head shall be the „Appellate Authority‟ in all such cases.

d) For Corporate Office only

For procurement of items / award of contracts, to meet the requirement of Corporate Office only, Head of CMMG shall be the “Competent Authority” and Director (Technical) shall be the “Appellate Authority”.

e) Chairman, AIL shall have overall power to take suo-moto action on any

information available or received by him and pass such order(s) as he may think appropriate, including modifying the order(s) passed by any authority under these guidelines.

iv) ‘Investigating Department’ shall mean any Department or Unit investigating into

the conduct of the Agency and shall include the Vigilance Department, Central Bureau of Investigation, the State Police or any other authority or agency set up by the Central or State Government having powers to investigate.

of 69

v) ‘List of approved Agencies - Parties/Contractors/Suppliers/ Purchasers/Customers shall mean and include list of approved/registered Agencies - Parties/Contractors/Suppliers/ Purchasers/Customers, etc.

4. Initiation of Banning/Suspension Action for banning/suspension of business dealings with any Agency should be

initiated by the department having business dealings with them after noticing the irregularities or misconduct on their part. The Vigilance Department of AIL shall have the right to recommend banning/suspension and this shall be binding on the Department/SBU and non-compliance of these recommendations/instructions shall be deemed to be a misconduct on the part of the Head of the Department/SBU.

5. Suspension of Business Dealings

5.1 If the conduct of any Agency dealing with AASL is under investigation by any department (except Foreign Suppliers of imported coal/coke), the Competent Authority may consider whether the allegations under investigation are of a serious nature and whether pending investigation, it would be advisable to continue business dealing with the Agency. If the Competent Authority, after consideration of the matter including the recommendation of the Investigating Department, if any, decides that it would not be in the interest to continue business dealings pending investigation, it may suspend business dealings with the Agency. The order to this effect may indicate a brief of the charges under investigation. If it is decided that inter-connected Agencies would also come within the ambit of the order of suspension, the same should be specifically stated in the order. The order of suspension would operate for a period not more than six months and may be communicated to the Agency as also to the Investigating Department. The Investigating Department may ensure that their investigation is completed and whole process of final order is over within such period.

5.2 The order of suspension shall be communicated to all Departmental Heads

within the Departments/Stations. During the period of suspension, no business dealing may be held with the Agency.

5.3 As far as possible, the existing contract(s) with the Agency may continue unless

the Competent Authority, having regard to the circumstances of the case, decides otherwise.

5.4 If the gravity of the misconduct/violation under investigation is very serious and it

would not be in the interest of AASL, as a whole, to deal with such an Agency pending investigation, the Competent Authority may send his recommendation to Chief Vigilance Officer (CVO), AASL Corporate Office along with the material available. If Corporate Office considers that depending upon the gravity of the misconduct/violation, it would not be desirable for all the Departments/Stations and Subsidiaries of AIL to have any dealings with the Agency concerned, an order suspending business dealings may be issued to all the Departments/Stations by the Competent Authority of the Corporate Office, copy of which may be endorsed to the Agency concerned. Such an order would operate for a period of six months from the date of issue.

of 69

5.5 For suspension of business dealings with Foreign Suppliers, following shall be the procedure:-

i) Suspension of the foreign suppliers shall apply throughout the Company

including Subsidiaries or group companies.

ii) Based on the complaint forwarded by ED-Procurement or received directly by Corporate Vigilance, if gravity of the misconduct under investigation is found serious and it is felt that it would not be in the interest of AASL to continue to deal with such agency, pending investigation, Corporate Vigilance may send such recommendation on the matter to Executive Director-Procurement to place it before a Committee consisting of the following:

1. Director-Finance/Head of Corporate Finance; 2. SBU Head/Department concerned; 3. ED-Headquarters/Head of Corporate Office; 4. GM-Legal/Head of Corporate Law.

The committee shall expeditiously examine the report, give its comments/recommendations within twenty one days of receipt of the reference by ED-Procurement.

iii) The comments/recommendations of the Committee shall then be placed by

ED-Procurement before the Board of AASL and if the Board opines that it is a fit case for suspension, SBU Head may pass necessary orders which shall be communicated to the foreign supplier by ED-Headquarters.

5.6 If the Agency concerned asks for detailed reasons of suspension, the Agency

may be informed that its conduct is under investigation. It is not necessary to enter into correspondence or argument with the Agency at this stage.

5.7 It is not necessary to give any show-cause notice or personal hearing to the

Agency before issuing the order of suspension. However, if investigations are not complete in six months‟ time, the Competent Authority may extend the period of suspension by another three months, during which period the investigations must be completed.

6. Grounds on which Banning of Business Dealings can be initiated

6.1 If the security consideration, including questions of loyalty of the Agency to the State, so warrants;

6.2 If the Director/Owner of the Agency, proprietor or partner of the firm, is

convicted by a Court of Law for offences involving moral turpitude in relation to its business dealings with the Government or any other public sector enterprises or AASL, during the last five years;

6.3 If there is strong justification for believing that the Directors, Proprietors,

Partners, owner of the Agency have been guilty of malpractices such as bribery, corruption, fraud, substitution of tenders, interpolations, etc;

of 69

6.4 If the Agency continuously refuses to return/refund the dues of AASL

without showing adequate reason and this is not due to any reasonable dispute which would attract proceedings in arbitration or Court of Law;

6.5 If the Agency employs a public servant dismissed/removed or employs a

person convicted for an offence involving corruption or abetment of such offence;

6.6 If business dealings with the Agency have been banned by the Govt. or any

other public sector enterprise;

6.7 If the Agency has resorted to Corrupt, fraudulent practices, coercion, undue influence and other violations including misrepresentation of facts;

6.8 If the Agency uses intimidation/threatening or brings undue outside

pressure on the Company (AASL) or its official in acceptance/ performances of the job under the contract;

6.9 If the Agency indulges in repeated and/or deliberate use of delay tactics in

complying with contractual stipulations;

6.10 Wilful indulgence by the Agency in supplying sub-standard material irrespective of whether pre-despatch inspection was carried out by Company (AASL) or not;

6.11 Based on the findings of the investigation report of CBI/Police/internal

Vigilance or any other investigative agency including Government Audit against the Agency for malafide/unlawful acts or improper conduct on his part in matters relating to the Company (AASL) or even otherwise;

6.12 Established litigant nature of the Agency to derive undue benefit;

6.13 Continued poor performance of the Agency in several contracts;

6.14 If the Agency misuses the premises or facilities of the Company (AASL),

forcefully occupies tampers or damages the Company‟s properties including land, water resources, forests / trees, etc.

(Note: The examples given above are only illustrative and not exhaustive. The Competent Authority may decide to ban business dealing for any good and sufficient reason).

7. Banning of Business Dealings

7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries And group companies. However, the Competent Authority of the Department/Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Department/Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the

of 69

local conditions and impact of the misconduct/default to beyond the Department/Unit. Any ban imposed by Corporate Office shall be applicable across all Departments/Stations of the Company including Subsidiaries and group companies.

7.2 For Company-wide banning, the proposal should be sent by ACVO of the

Department/Unit to the CVO through the Chief Executive of the Department/Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents except for banning of business dealings with Foreign Suppliers of imported coal/coke.

The Corporate Vigilance shall process the proposal of the Department/Unit for a prima-facie view in the matter by the Competent Authority nominated for Company-wide banning.

The CVO shall get feedback about that agency from all other Departments/Stations. Based on this feedback, a prima-facie decision for banning/or otherwise shall be taken by the Competent Authority.

If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-cause notice to the agency conveying why it should not be banned throughout AASL.

After considering the reply of the Agency and other circumstances and facts of the case, a final decision for Company-wide banning shall be taken by the Competent Authority.

7.3 There will be a Standing Committee in each Department/Unit to be appointed

by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items/award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of Executive Director/General Manager from Finance, Procurement and Legal:

i) To study the report of the Investigating Agency and decide if a prima-

facie case for Company-wide/Local unit wise banning exists, if not, send back the case to the Competent Authority.

ii) To recommend for issue of show-cause notice to the Agency by the

concerned department. iii) To examine the reply to show-cause notice and call the Agency for

personal hearing, if required. iv) To submit final recommendation to the Competent Authority for banning

or otherwise.

7.4 If the Competent Authority is prima-facie of the view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly.

of 69

8. Removal from List of Approved Agencies - Suppliers/Contractors, etc.

8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers/Contractors, etc.

8.2 The effect of such an order would be that the Agency would not be disqualified

from competing in Open Tender Enquiries. 8.3 Past performance of the Agency may be taken into account while processing

for approval of the Competent Authority for awarding the contract. 9. Show-cause Notice

9.1 In case where the Competent Authority decides that action against an Agency is called for, a show-cause notice has to be issued to the Agency. Statement containing the imputation of misconduct or misbehaviour may be appended to the show-cause notice and the Agency should be asked to submit within 15 days a written statement in its defence.

9. 2 If the Agency requests for inspection of any relevant document in possession

of AASL, necessary facility for inspection of documents may be provided. 9.3 The Competent Authority may consider and pass an appropriate speaking

order:

a) For exonerating the Agency if the charges are not established; b) For removing the Agency from the list of approved Suppliers/Contactors,

etc. c) For banning the business dealing with the Agency.

9.4 If it decides to ban business dealings, the period for which the ban would be operative may be mentioned. The order may also mention that the ban would extend to the interconnected Agencies of the Agency.

10. Appeal against the Decision of the Competent Authority

10.1 The Agency may file an appeal against the order of the Competent Authority banning business dealing, etc. The appeal shall be to the Appellate Authority. Such an appeal shall be preferred within one month from the date of receipt of the order banning business dealing, etc.

10.2 Appellate Authority would consider the appeal and pass appropriate order

which shall be communicated to the Agency as well as the Competent Authority.

11. Review of the Decision by the Competent Authority

Any petition/application filed by the Agency concerning the review of the banning order passed originally by Chief Executive/Competent Authority under the existing guidelines either before or after filing of appeal before the Appellate Authority or after

of 69

disposal of appeal by the Appellate Authority, the review petition can be decided by the Chief Executive/Competent Authority upon disclosure of new facts/circumstances or subsequent development necessitating such review. The Competent Authority may refer the same petition to the Standing Committee for examination and recommendation.

12. Circulation of the names of Agencies with whom Business Dealings have been

banned

12.1 Depending upon the gravity of misconduct established, the Competent Authority of the Corporate Office may circulate the names of Agency with whom business dealings have been banned, to the Government Departments, other Public Sector Enterprises, etc. for such action as they deem appropriate.

12.2 If Government Departments or a Public Sector Enterprise request for more information about the Agency with whom business dealings have been banned, a copy of the report of Inquiring Authority together with a copy of the order of the Competent Authority/Appellate Authority may be supplied.

12.3 If business dealings with any Agency have been banned by the Central or State Government or any other Public Sector Enterprise, AASL may, without any further enquiry or investigation, issue an order banning business dealing with the Agency and its inter-connected Agencies.

12.4 Based on the above, Departments/Stations may formulate their own procedure for implementation of the Guidelines.

of 69

AIRLINE ALLIED SERVICES LTD.

INTEGRITY PACT PROGRAM

I. INTRODUCTION

Airline Allied Services Ltd. (AASL) is a premier Public Sector airline (a wholly owned subsidiary of Air India Limited) engaged in air transportation of passengers and cargo in India. The brand name of the Company is Alliance Air and it conducts its business by benchmarking itself to the highest ethical standards, and adopting the best practices followed by the industry.

It does business with a number of domestic and international Bidders, Contractors and Vendors of goods and services (Counterparties). AASL is committed to fostering the most ethical and corruption free business environment. AASL values its relationships with all Counterparts and deals with them in a fair and transparent manner.

In order to achieve these goals, AASL is implementing the Integrity Pact Program in cooperation with Central Vigilance Commission (CVC) in respect of all contracts of the value of Rs.10 crores and above. As a part of this initiative, AASL will, in consultation with CVC, appoint external Independent Monitors who will help AASL in implementing the Integrity Pact Program. The Integrity Pact would be signed by the Principal and the Vendor at the pre-tendering stage itself, and will form part of the Tender document. A pre-signed Integrity Pact by the Principal would form part of the Tender document. The Vendors would sign the Pact and submit it along with the financial and technical Bids.

The ingredients of AASL‟s Integrity Pact Program are broadly based on:-

Commitments and Obligation of AASL and its employees

Commitments and Obligation of Counterparties

Violation and Consequences

Independent Monitor

Implementation Guidelines

Role of Independent Monitors. II) COMMITMENTS AND OBLIGATION OF AASL

a) AASL is committed to have the most ethical and corruption free business

dealings with its Counterparties. b) AASL values its relationship with all Counterparties and will deal with them in a

fair and transparent manner. c) AASL and/or its Associates (employees, agents, consultants, advisors, etc.) will

not seek or take bribes / undue benefit directly or indirectly for themselves or for third parties.

of 69

d) In a competitive tender as well as in general procurement, AASL will deal with all Counterparties with equity, reason and fairness.

e) AASL will exclude all Associates who may be prejudiced or have a Conflict of

Interest in dealings with Counterparties. f) AASL will honour its commitments and make due payments to Counterparties in

a timely manner. g) AASL will initiate action and pursue it vigorously whenever corruption or

unethical behaviour occurs. III) COMMITMENTS AND OBLIGATIONS OF THE ‘COUNTER-PARTY’

a) The Counterparty, directly or indirectly (through Agent, consultant, advisor, etc.),

will not pay any bribes or give illegal benefit to anyone to gain undue advantage in dealing with the Principal, AASL.

b) The Counterparty will not engage in collusion, Price-Fixing, etc. with other

Counterparties in dealing with the Principal, AASL. c) The Counterparty will not pass on to any third party any of the Principal‟s

confidential information unless authorized by the organization. d) The Counterparty will promote and observe best ethical practices within its

organization. e) The Counterparty will inform the Independent Monitor:

i) If it receives demand for a bribe or illegal payment/benefit

ii) If it comes to know of any unethical or illegal practice in the Principal‟s

organization (AASL)

iii) If it makes any payment to any of AASL‟s Associates.

f) The Counterparty will not make any false or misleading allegations against AASL or its Associates.

IV) VIOLATIONS & CONSEQUENCES

a) If a Counterparty commits a violation of its Commitments and Obligations under the Integrity Pact Program during the bidding process, it shall be liable to compensate AASL by way of Liquidated damages amounting to a sum equivalent to 3% of the value of the offer or the amount equivalent to Earnest Money Deposit/Bid Security, whichever is higher or an amount determined by the Independent Monitor.

b) In case of violation of the Integrity Pact whereby after award of the Contract the

Principal (AASL) terminates or is entitled to terminate the Contract, AASL shall be entitled to demand and recover from the Contractor liquidated damages

of 69

equivalent to 5% of the contract value or the amount equivalent to Security Deposit/Performance Bank Guarantee, whichever is higher or an amount determined by the Independent Monitor.

c) AASL may ban and exclude the Counterparty from future dealings until the

Independent Monitor is satisfied that the Counterparty will not commit any future violation.

d) AASL may initiate criminal proceedings against the violating Counterparty,

depending on the gravity of the violation.

e) In case there is a violation of the Integrity Pact by the Principal (AASL) or its Associates (i.e. employees, agents, consultants, advisors, etc.), AASL undertakes to take appropriate action against them.

f) If the complaint made by a Counterparty is found to be frivolous or mischievous,

action in the form of certain sanctions would be taken against the said complainant.

V) INDEPENDENT MONITOR

1) Chairman & MD, AIL, is the authority to appoint Independent Monitor(s) to oversee the implementation and effectiveness of the Integrity Pact Program. The process for their appointment shall be similar to Outside Expert Committee (OEC). For this purpose, a panel of Independent Monitors may be constituted by AIL and the same may be referred to CVC for clearance.

2) The Independent Monitor will be a person of Impeccable Integrity,

Knowledgeable of AIL‟s business and experienced in commercial activities.

3) It will be a voluntary, non-salaried position of 3 years terms. Independent Monitor will have stature /benefits similar to those of Chairman of the Audit Committee of Board/status of the Directors of AIL. The remuneration and perquisites would be similar to the remuneration/perks of independent Directors on the Board of AIL.

4) The main objective of the Independent Monitor will be to oversee the

implementation of the Integrity Pact Program, to prevent corruption, or any other unethical practices in the implementation of the contract.

5) The Independent Monitor will not have administrative or enforcement

responsibilities. He will coordinate his efforts through the CVO or other anti-corruption institutions such as CVC. (He may engage services of outside agencies such as accounting firms, law firms, etc. at AIL‟s expense, if required, in discharge of his responsibilities after obtaining the approval of the Chairman & M.D.)

6) The Independent Monitor will have access to all offices and internal records of

the Principal in respect of the Tender in question. He will also have access to Counterparties‟ records and information regarding its dealing with the Principal.

7) The Independent Monitor will have the right to attend any meetings between the

Principal and the Counterparties. As far as possible, the meetings should be

of 69

scheduled in India. In respect of any meeting to be held outside India, attendance by the Independent Monitor would be decided in consultation with the Chairman & M.D., AIL.

8) If the Independent Monitor observes or suspects an irregularity, he will inform the

Chairman of AIL. Once the Independent Monitor is satisfied that any irregularity has taken place, he may also inform the CVO and CVC.

VI) IMPLEMENTATION GUIDELINES

To implement the Integrity Pact Program, the following general Guidelines are suggested:

a) To select and appoint a Panel of Independent Monitors in consultation with the

CVC. b) To get commitment from all Senior Level executives/officials of AASL to

implement the program. It should be recognized that there may be resistance to Integrity Pact program.

c) To develop detailed implementations plans and finalize the Integrity Pact

document in consultation with the Independent Monitors. d) To notify all senior staff members, Board of Directors, any other over-sight body

of the Organization and major suppliers of AASL‟s plans to implement Integrity Pact program, which is to be includedin AIL‟s web site and also disclose this initiative to the media.

VII) PERIODIC REVIEW & EVALUATION

It is recommended that the Board of Directors of AASL periodically review the effectiveness of Integrity Pact Program by all or some of the following measures:-

1) The Independent Monitors and senior leadership of AASL do an annual self-

assessment of Integrity Pact Program effectiveness and identify areas / ways to improve the same.

2) The Independent Monitor will submit an annual report on the progress /

effectiveness of Integrity Pact Program to the Board of Directors of AASL. 3) AASL may conduct an annual 360-degree review (through an outside agency, if

required) with senior executives, junior executives, suppliers, and competitors, regarding the effectiveness of the Integrity Pact Program in reducing corruption. Feed-back may be taken from the junior and senior executives of the Principal, suppliers and competitors.

4) AASL should meet with CVC on an annual basis to review the effectiveness of

the program.