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AIR INDIA LIMITED

TENDER FOR CARGO HANDLING AT FRA (Frankfurt International Airport)

Tender no. GH/CGO/FRA/2016/ 031X

TENDER DOCUMENTDear Handling Agent,

Sub: Cargo Handling and Warehouse Services at Frankfurt International Airport, Frankfurt

Air India Limited (AI), solely at its discretion desires to award Contract for availing Cargo Handling and Warehouse Services for Air India flights at Frankfurt International Airport, Frankfurt (FRA). We invite Cargo handling companies authorized by the local Aviation regulator and the Airport authority of FRA to perform the services mentioned in this document, at Frankfurt International Airport, to submit offers, for handling of Cargo transported on Air India flights. The offers should be provided in the format provided in this document. Please note that offer for only those services should be made for which the handling company is Authorized/Licensed by the Competent Authority.

2. You are requested to submit your 'Sealed Offer' on or before 30 Dec, 2016 by 1200 hours in the office of :

Manager – FRA, Air India Ltd.. Gutleutstr. 80 D-60329 Frankfurt am Main Frankfurt, Tel no 0049-69-25600414Email: [email protected]

Response received after the due date, time and incomplete response are liable to be rejected.

3. Following Annexure are enclosed with this Tender Document.Annex-I Air India's current schedule of operations at Terminal 01 (FRA).Annex-II Resource requirement, Procedures and Services Standards expectedAnnex-III Service Level Agreement(SLA)Annex-IV Air India’s Service requirement as per IATA AHM 810 2013 Version

(including yellow pages of AHM 36th Edition)Annex-V Handling Company Profile and Terms of Technical Evaluation Annex-VI Commercial Offer.Annex-VII Integrity PactAnnex-VIII Check List

4. Your offer should be in “Two Separate Sealed Envelopes” as given below:

ENVELOPE – 1: “Handling Company Profile – GH”

Information regarding Handling Company in general including the structure of Company, turnover and experience in relevant business and capability to provide offered handling services at Frankfurt International Airport, Frankfurt, Germany. Handling Company’s response must reply each point mentioned in Annex-V strictly as per format of this Tender document. Air India reserves the right to reject the bids which do not comply and do not meet the requirements and experience or do not provide information in desired format or put the commercial offer in “Technical Bid envelope”. Air India reserves the right to withdraw the complete Tender process at any stage without assigning any reasons thereof.

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Carrier’s Initial……… Handler’s Initial……..

mailto:[email protected]

AIR INDIA LIMITED


Tender no. GH/CGO/FRA/2016/ 031In this response Services intent to be offered & provided, must be specified “NO RATES MUST BE QUOTED OR INDICATED ON ANY OF THE DOCUMENTS IN THIS ENVELOPE.”

ENVELOPE – 2: “COMMERCIAL OFFER – GH”

Please submit your quotation meeting the requirements of Annex II, III & IV (AHM 810 AND 811 - 2013 of 36th AHM). The commercial offer be submitted by responding against each para of Annex VI. Air India desires bidder to abide by all the terms and conditions of Annex-VI. Additional terms & conditions related to the para, if any to be proposed, may be indicated at the end of respective para by way of additional sub-para.

5. It may please be noted that, both the offers (Technical & Commercial) must be put in separate sealed envelopes and both envelopes must clearly super-scribe the following and submit these envelopes before the due date.

Tender No. Name and Phone no. of the GH Company. Technical Bid or Commercial Bid.

6. Offers received after the due date, time and incomplete response are liable to be rejected. Air India reserves the right to accept or reject any bids and/or cancel the tender process at its own discretion. Offers indicating rate(s) in the Technical Bid or commercial offer received in the Technical Bid Envelope (Envelope -1) is liable to be completely rejected.

7. The offers received will be opened in the office of the Airport Manager Air India (FRA) Frankfurt International Airport in the presence of bidders who are interested to be present. Initially the technical offers (Envelop 1) will be opened. Subsequently the commercial offers (Envelop 2) will be opened if possible for those bidders who meet Air India requirements technically under Annex V. Bidders will be informed about date, time and venue for opening of bids at the contact no. indicated on the top of the envelopes.

8. If you require any clarifications, please contact Air India as per details mentioned below.

Mr. Gagan Chabbra, Manager-FRA, Air India Ltd.Gutleutstr. 80 D-60329 Frankfurt am Main Frankfurt, Tel no 0049-69-25600414Email: [email protected], [email protected]

Mr. Manoj KakarDy. General Manager,Handling Contracts and AgreementGround Handling Hqrs.,Air India [email protected]: +91 11 23422182, 23422162

We shall appreciate if you confirm your participation in this tender.Regards,

Gagan Chabbra,Manager-FRA

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AIR INDIA LIMITED


Tender no. GH/CGO/FRA/2016/ 031ANNEX – I

Air India Flight Schedule Effective Summer Schedule-2016 at FRA

DAYS FLT NBR A/C TYPE ARR DEP SECTORDaily AI-121/120 B787 1800 LT 2130 LT DEL-FRA-DEL

NOTE:

1. The Schedule provided above is for Season Winter – 2016. The Schedule for Summer 2016 will be advised when the same is finalized. It may be clearly noted that Schedule or aircraft type are subject to change & intimation of the same will be provided with reasonable Notice.

2. Change in schedule / frequency will not be a ground for seeking any escalation in Handling changes.

3. A/C configuration:(Subject to change without notice)

(*)-Configuration is approximate

4. Approximate Carriage of Cargo / Mail (including COMATs) to be handled per Month.

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Aircraft type ULD ConfigurationPallet Container

B787-800 04 18B787-900* 04 22A330-200 04 14B777-200LR 04 18B777-300ER 06 24

Sr. No.

Type of Cargo Import (tons) Export (tons) Total (tons)- Appox

1 Revenue Cargo including Mail/ Courier/COMAT/transit

170 210 380

AIR INDIA LIMITED


Tender no. GH/CGO/FRA/2016/ 031ANNEX – II

RESOURCE REQUIREMENTS AND SERVICE STANDARDS EXPECTED.

1.1 CARGO HANDLING SERVICES:

1.1.1 The Handling Company will provide cargo handling services as specified in Annexure IV of this tender in their warehouse and provide necessary manpower, supervision services including dedicated Customer Service Agent. The job requirement is given in details below in Para 1.3 of Standards of services & staff requirements .

1.1.2 The Handling Company should hold all warehouse equipment for handling the cargo at their cost.

1.1.3 The Handling Company will provide storage for the ULD's of the Carrier and will submit an inventory report on weekly basis to Air India personnel. The Handling Company shall provide cooling facilities for storage of perishable shipments.

1.1.4 The Carriers may display its signage and corporate logo on the Handling Companies facility.

1.1.5 The Handling Company will ensure that all Govt. formalities like (SAFA, ASOB, ICAO, IATA/ EU regulations / Local Regulations) customs, health, safety labour and other mandatory requirements are complied with.

1.1.6 Dangerous goods will be accepted by Handling Company's trained personnel in accordance with the latest edition of IATA DGR and Carrier's special instructions. The staff from the Handling Company performing these functions should hold valid certificate, periodically updated.

1.1.7 All special cargo such as VAL, PER, HUM, DGR, etc. either for Export or Import are to be escorted (move only in presence of escorted staff), treated and stored in accordance with instructions of AWB, IATA-DGR guidelines, Customs & Security regulations. Handling Company to move the special cargo under supervision of security staff,

1.1.8 Consumables for ULD build up of export cargo like skids, plastic cover, lashings etc. will be supplied by the Handling Agency and should be inclusive in the quoted rate. A comprehensive Price List to be submitted.

1.1.9 The handling Company will provide or arranged for ETDS / X-ray Machine which will be manned by trained and certified Security personnel of the Handling Agent as needed under EU regulation.

a) The Handling Company to arrange X-RAY machine with a tunnel size capable of screening cargo / ULD with minimum dimensions of 62 inches wide and 66 inches high. As per BCAS regulations both X-RAY and ETD are required for Cargo screening.

b) The X-RAY machine and ETD must be approved by EU agency and BCAS and be manned by certified cargo screeners.

c) The X-ray machine must be “Dual View” supportive as per BCAS and capable of handling pre-built cargo ULD.

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Tender no. GH/CGO/FRA/2016/ 0311.1.10 All arrival/departure activities (AWB data & warehouse functions) inclusive of ULD movements on

Air India flights to be completed on Air India’s cargo system – presently ‘LMS (Logistics Management System)’. Air India will provide access to this web based system.

1.1.11 For cargo destined to points beyond FRA, onward flight/trucking details should be entered in the system. Trucks ex-other locations in Germany to be off-loaded by the warehouse staff, and transactions are to be treated as an import inbound flight, except copy 5 of the TI document is stamped by customs and should be filed.

1.1.12 The terminal charges for export, import and transhipment consignments will be determined by market practice and will be charged with prior notice to Air India & concurrence only. The warehouse should be guarded on round-the-clock basis by competent security.

1.1.13 As per BCAS requirement the Handling Agency will provide warehouse demarcation clearly segregating screened and unscreened cargo.

1.1.14 The Handling Company will be held responsible for EU Customs, DGAC and any other Governmental Agency fines or penalties if it is due to deficiencies attributable to the Handling Company.

1.2 Security requirement:

1.2.1 The following will be the security requirement, which will be provided by the Handling Agent.

i) Strong rooms for keeping the valuable cargo.ii) Separate area to be provided by the Handling Company for retaining cargo which requires 24

hours cooling period.iii) Premises should be safe guarded by trained personnel with modern security equipment. The

selected cargo Handling Company, apart from following DTLR/EU /Germany Regulation/BCAS procedures will also have to observe Air India procedures, which will be apprised to them.

iv) The Handling Agent will allow Air India Security or its authorised agency to carry out their functions in the Handling Agents warehouse.

v) The Handling Agent should note that the Air India Security or its authorised agency would escort the cargo while transported to/from warehouse to Air India flight.

1.2.2 Space for Comat Handling ;

The Handling Agent will provide adequate and segregated area with provision for flexible perimeter to accommodate occasional oversized items and use of racking system to maximize storage area.

1.3 Standard of Service Expected and Staff Requirements: The common job requirements applicable for export/import/flight handling tarmac coordinators/customer services unit and COMAT handling are given in details below.

1.3.1 EXPORT / IMPORT HANDLINGThe Handling Agent will be required to deploy staff depending on volume of cargo each day of operation, for handling of Import / Export cargo besides some dedicated staff as indicated. The reporting pattern of these staff shall be discussed with Air India officials prior to deployment as per flight schedule.

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Tender no. GH/CGO/FRA/2016/ 031

S/no. Functions Strength of staff Required

1 Imports & Exports / Loader-Unloader As required

2 Dedicated Customer Services Unit office (working hours 0900 to 1730 hrs)

1 (On request & recharge)

3 Cargo Agent - Flight Handling (also to perform LMS functions)

1

4 Tarmac Coordinator - as per schedule 1

a) Sufficient number of staff to be trained to fill in for the leave vacancies to ensure availability as per agreed deputation on all days.

b) All the staff should be employees on the payroll of the Company. The warehouse staff should be well trained and qualified to operate handling equipment.

c) All staff of the Handling Company should have valid license for handling Dangerous Goods and meeting all IATA DGR requirements for handling of Air India export and import cargo.

d) The Handling Agent will ensure that due care is taken to avoid damage to the Carriers property, including the booked cargo. The Handling Agent will also comply with all local health and safety regulations and the security parameters as drawn and established by Air India. In addition, the Handling Company shall also be solely responsible for strictly adhering to the Local and Federal Regulations.

e) Continuity of staff (trained) in carrying out Cargo functions to be maintained.

f) Storage space for Air India containers under section 6.3.1 of Annex-IV (for 15 LD3 containers and one pallet shelf up to 25 pallets.)

g) The Handling agent will prepare reconciliation statements showing cargo received/accepted, amounts collected and amounts outstanding Air Waybill wise and Party wise as required both on a daily and monthly basis for import, export and Charges Collect shipments.

1.3.2 JOB REQUIREMENTS – EXPORT CARGO

a) Receipt of cargo consignments in Air India warehouse, with all relevant documents to be checked by agent receiving/accepting the documents. The handling agent staff shall inspect cargo condition, test by ETD/x-ray if required and verify labeling.

b) Check and weigh consignment. If cargo is of valuable nature (silver, gold), Duty Manager or Duty Supervisor to be present during weighing operation. Correction if necessary to be made on the AWB.

c) Reading weight / charges etc., in the presence of the freight delivering agent.

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Tender no. GH/CGO/FRA/2016/ 031d) Documents to be entered in the system for customs purpose, and assigned to the relevant flight as per the

booking sheet, which will be given to the handling agent by Air India Sales office every day. Complete shipment data capture required (AWB, HAWB, etc) in Air India LMS and all documents to be entered into the system for customs purpose, and assigned to the relevant flight as per the booking sheet, which will be given to the handling agent

e) Dangerous goods to be checked and cargo to be left in the area designated for such cargo. The Handling Company should have a licensed staff to handle dangerous goods – Export / Import in accordance with current IATA DGR and ensure that such a staff is made available for acceptance and handling of Air India cargo containing dangerous goods.

f) Ensure all security documentation is in order, and if not, the same to be obtained from the exporter / agent by telephone. Also a copy of the Security Regulatory Authority letter as required by local laws is to be obtained.

g) All customs procedures to be processed and related documents to customs as per customs requirement.

h) All efforts to be made for utmost utilization of the aircraft space available. This is to be done based on the booking sheets provided to the handler by Air India Sales and further through telephone calls, and finally completion upon receipt of final LPM. Courier and company material also to be forwarded following the above yard sticks, with the ultimate objective for total utilization of the space available. (If required as per AI guide lines)

i) To produce a Loading Sheet for the warehouse staff to build the ULD / loose accordingly.

j) The warehouse staff to act on the Loading Sheet and advice the office staff, who in turn will prepare the final manifest depicting the ULD No. / loose cargo and the contents.

k) Supplementary manifest to be prepared to account for the last minute changes on the cargo carriage.

l) Telex / Emails messages to be sent within 1 hour of departure of flight to all concerned, regarding the joining load for the flight, with all dangerous goods details or special cargo handling details and any other required information.

m) In case of payload / space restrictions, the cargo load to be adjusted and documents / computer to be updated accordingly.

n) Requisite number of copies of air waybill, manifests and tally sheets to be prepared for export and import cargo to be forwarded onboard the aircraft for distribution at destination and distribution at origin, for all concerned.

o) Document M1 to be raised after mail has been dispatched, copies of which to be forwarded to FRA Accounts for billing, and copy forwarded to Cargo Mail Section, Mumbai, for record.

p) For dangerous goods, a NOTOC has to be produced, including copy of declaration and copy of relevant blue page from DG Book to be handed over to the Captain for his signature. A signed copy for Load Control Unit and flight record to be obtained. Damage ULD loaded on to the aircraft shall also be included in NOTOC.

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Tender no. GH/CGO/FRA/2016/ 031q) All joining valuable / perishables on board to be advised to security and cargo coordinator in the

morning.

r) To send the telexes pertaining to flight departure, i.e. valuable cargo, diplomatic mail, perishable cargo, dangerous goods, trans-shipments & HUM, UCM and any other special handling messages to transit and destination station. For cargo offloaded, intimation to be sent to destination.

s) To give joining cargo/mail figures once flight has departed to traffic/load Control staff.

t) To prepare manifest in FFM format and AWB-wise after each flight departure. To provide backlog figures as and when required.

u) Export Tracing: - Offloaded cargo, missing cargo - relevant telexes to be sent to the various destinations until the cargo has been traced.

v) Execute export AWB and prepare transfer at source. TFM on behalf of Air India.

w) In case an AWB is used from strong room, the register must be filed.

x) To manifest and prepare documents for movement of cargo shipped by road. Notify to Air India if any claims received from agents.

y) Export flight documentation including legible copies of manifest/airway bills are to be submitted to Air India Cargo Accounting daily. Cargo Transfer Manifests (Import/Export) records must be maintained and furnished to Air India Cargo Accounts. All records necessary for billing to Agents should be maintained and readily accessible by the Handling Agent.

1.3.3 JOB REQUIREMENTS – IMPORT CARGO

a) Import documents brought from the Air India flights, by Air India coordinator to be segregated into: Imports for FRA Imports for trans-shipment.

b) FRA documents to be fed into the computer for the necessary customs clearance and AMS inputs completed.

c) Trans-shipment documents also to be similarly fed into the computer for obtaining the necessary release note and transfer manifest for the ultimate destinations.

d) To book onward cargo with relevant carrier and obtain confirmation.

e) Arrange for transport to the receiving carrier's warehouse, on or in the close proximity of the airport of arrival of transfer cargo under cover of the transfer manifest.

f) To notify consignee or agent of the arrival of the shipment by means of Cargo Arrival Notice and also contact them via phone or fax, and record the same.

g) Warehouse staff to offload the cargo from Ground Handling Agent's bulk Lorries and ULD trucks, and then break down and / or empty ULD'S.

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h) One import manifest to be given to cargo warehouse supervisor to check the actual cargo arrival in the warehouse, and pieces to be checked against the manifest.

i) On completion of the above, status one to be sent- FLIGHT REPORT / DISCREPANCY if any & accordingly TELEX TO BE SENT TO ORIGIN STATION/SECURITY. Related entries to be made in the carrier’s System (LMS).

j) Arrange for collection of charges on 'charges collect' consignments as per the airway bills and remit the same to Air India.

k) Release cargo to the consignee or agent upon proper release by customs and other government agencies as required.

l) Take action in accordance with applicable instructions when consignee refuses acceptance or payment, i.e. send telex/email to originating destination, with follow-up action. IRP to be raised and sent to point of origin with a copy to Air India.

m) Any shipper built ULD handed over to agent / consignee must be recorded, reflecting the Condition of the ULD with ULD numbers and also to ensure that it is returned within 2 days in the same condition as and when handed out. In the event of loss or damage, the handling agent must inform Air India, who in turn will take necessary penalty action against the agent / consignee.

n) To report any damage on telex/email to originating station, and accordingly prepare damage report. The same to be stamped by Air India Security (Representative).

o) All import tracing i.e. inbound missing cargo, insufficient addresses, no response from importer etc., and disposal instructions to be requested via telex by the handling agent.

p) To do bond check every month with a copy to Air India.

q) Pallet stock inventory to be carried out every WEEKLY, and SCM telex/email to be [email protected] and sent to the ULD Control Centre, Delhi, Manager, Cargo Operations and GH Unit, Mumbai, Air India about the same. (FRAKFAI/ BOMFVAI/ BOMFDAI/ BOMKFAI/ BOMGYAI).

r) Air India container inventory to be carried out every WEEKLY and UCM telex to be sent to FRAKFAI/ BOMGYAI/BOMFVAI/ BOMKFAI. Air India ULD container float storage to be provided at no additional charge. The container inventory report every WEEKLY be sent to [email protected] SFOKZAI/ SFOKGAI / BOMFPAI/BOMGYAI/BOMFVAI.

s) To handle / reply to any claims received from agents / shipper / consignee.

t) Import Charges Collect Shipments will be the responsibility of the Handling Agent and guaranteed form of cash / cashless payment, certified check or money order is to be determined by the Handling Agent. It is the responsibility of the Handling Agent for shipments consigned to Banks to obtain the bank release prior to delivery of the shipment.

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Tender no. GH/CGO/FRA/2016/ 0311.3.4 JOB REQUIREMENT - TRANSFER FUNCTIONS

i) DIP MAIL

Imports a) Prepare transfer manifest

Prepare in-bond labelsb) All docs taken to Customs for approval and brought back to ensure all shipments

transferred same day, if possible.c) All shipments taken physically to respective airlines' warehouse with respective transfer

manifest.

ExportReceive transfer manifest from interline carrier/trucking company - checkairway bills and customs approval and other docs.

ii) COMATConsignments including odd-sized for CAO transfer to foreign airlines - prepare transfer manifest and take each consignment to respective foreign airlines' warehouse for acceptance.

iii) CARGO

For Import - consignments-book on telex with respective airlines, execute transfer manifest, and load on truck or physically take to interline carrier.For Export - receive from trucking company/interline carrier.

1.3.5 JOB REQUIREMENTS/ FLIGHT HANDLING - TARMAC CO-ORDINATORS

1. Check all incoming telexes and distribute as per flight and action accordingly.

2. The flight coordinators to use the handling Company’s airside transportation for attending flights.

3. The flight coordinators on duty will function and report to Air India Cargo Sales Manager / Air India flight coordinator.

4. Check all freight that has been built for the flights and see if anymore allocation available from load control and then organize with warehouse staff and handling agent to build the extra containers /Loose and pass weights to load control. Ensure all pallets and containers space is used to the maximum.

5. To check if all documents/manifests are ready for the flight. If valuable cargo being accepted i.e. Gold, to be weighed in coordinators presence and ensured all documents to be amended.

6. To check dangerous goods notification to captain (NOTOC) is made with all relevant copies

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Tender no. GH/CGO/FRA/2016/ 031attached.

7. To advise Ramp agent the quantum of load for the flight.

8. To monitor dispatch of all cargo from the warehouse in the correct position for easy load straight onto the Aircraft.

9. Attend incoming flight:

a) i) Meet aircraft on arrival and collect manifest.ii) Tally incoming cargo with manifest.iii) To check for any valuable incoming cargo.iv) Load any joining valuable cargo in presence of Air India Security fill in

valuable note. v) Ensure valuable container cargo is offloaded.

vi) Incoming Valuable cargo to be taken to warehouse and stored in strong room.vii) Valuable mail bags to be personally collected from the aircraft and handed over

to FRA Authority post office with receipted stamped/signed copy of CN38, and copy of same forwarded to Cargo Mail Section, Mumbai/ Delhi. (if required)

i) To ensure all pallets/containers/bulk cargo is correctly offloaded and same transported to warehouse.

ii) Should ensure all departure and arrival cargo is escorted by Security Staff from the warehouse to the aircraft and from the aircraft to the warehouse

b) Ensure Courier mail is offloaded and shifted/taken to Courier Facility.c) If any courier mail short-landed, appropriate telexes/emails must be sent to all concerned.

12. Attend Departure flight:

i) Load joining documents / manifest in designated container(Door Position).ii) NOTOC with Dangerous Goods to be shown to Captain indicating Degree of Danger of

Goods/ Loading position. Signature on NOTOC to be obtained, copy to be handed over to Load Controller/flight departure file.

iii) DGR certified staff to meet Captain with NOTAC and explain degree of danger of goods and position where same is loaded. Once he is satisfied take signature on NOTAC. Give copy of NOTAC to In-flight Supervisor/First Officer.

13. After flight departure all flight handling reports to be completed. All on-load / offload cargo figures to be passed to AI load control, FRA and to Mumbai by telex. All valuable / Cat A / joining Mail / AOG / Human Remains telexes to be sent. Pallet in / out inventory to be kept on daily basis and forward to Mumbai on fortnightly basis. Daily flight record (Arr/Dep) of all revenues/stores/mail figures to be maintained.

14. Handover on daily basis to AI copies of i) Import/Export manifest and airway billsii) Import/Export cash maps and bank deposit slips

15. Courier mail being accepted has to be X-rayed in coordinator’s presence by AI Security staff or

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Tender no. GH/CGO/FRA/2016/ 031dedicated supervisor and each bag has to be tagged. Security letter has to checked and copy of tag attached same to be handed over to Security Air India Manager/ representative. Bags to be picked up by Ramp agent to be monitored and taken to aircraft and then loaded and advise all concern regarding weight to load control. Send telex/ email after departure.

1.3.6 JOB REQUIREMENTS - CUSTOMER SERVICES UNIT

1. To handle all inquires for export/import, answer telexes and make arrangement for movement of special cargo. Pre-alert telexes for cargo needing special attention to be sent to concerned stations. Maintain records of export shipments including filing of CTM. Sort discrepancies pertaining to export / import consignments. The customer Services Unit will function under the direction of Air India personnel.

Functions to be performed:i) Post flight computer action on every consignment to LMS – freight delivered.ii) Import notification – by telephone / fax & e-mail/ LMS / PSS (ULD arrival message /

entry)iii) Telephone queries for export/import.iv) Cargo bookings.v) Tracing – mishandled cargo/ short-shipments.vi) Flight details/arrival details for export/import shipments.vii) Handle General cargo rates ( TACT ) enquiries.viii) Miscellaneous queries – Storage charges, documentation, special handling of cargo etc.ix) Auditing of flight – check air waybills for correctness of weight, dimensions, PER

clause and other fields.x) Maintain daily Cargo uplift statistics.xi) Issue CCAs.xii) Cover for other staff for lunch hour / vacation – six weeks each plus sick leave.xiii) All correspondence pertaining to customer service.

Supervisor’s additional functions of Dedicated Supervisor of Cargo:

S/no. Particulars1 Cargo Claims – export and import.2 Special customers/ cargo requirements/projects3 Handling of all queries from Indian missions regarding

export, import, diplomatic mail etc.4 Maintenance of building / equipment including repairs5 All correspondence pertaining to customer service

1.4 JOB REQUIREMENTS - COMAT HANDLING

General COMAT Functions: Handling of all Company material transported by the Carrier. Coordinate with Regional Materials Manager –(R-MMD) office for movement of COMAT/AOG/Critical company consignments. The Handling Company to provide services for handling of all COMAT transported by the Carrier. Coordinate with AI Cargo Manager for movement of COMAT/AOG/Critical company consignments. It includes issuing of AWB’s, freight handling, coordination and correspondences with AI suppliers, pick up, deliveries, information’s to AI

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Tender no. GH/CGO/FRA/2016/ 031offices concerned in India, maintaining records, customs clearance for imports consignments when required, the cargo handling agency will provide to AI a servicing comparable to servicing provided by cargo agents including data capture of shipments for transfer to LMS (AI system).

1.4.1 General Functions to be performed:1. Answer all faxes / telexes/emails giving required / requested information.2. Find all designated A.O.G.’s critical, work stoppage consignments and assign them to Q

Notes / air waybills.3. Resolve all discrepancies regarding unpaid invoices ( i.e. find relevant Q Notes / air waybills.4. Fax or mail requests for invoices / correct P.O. numbers or any other discrepancy to MMD

and match same when received. Send reminders for same, if not received.5. Book Air India cargo freight. Obtain booking rate and tariff information. 6. Send for C.O.D. payments from MMD. Keep a copy of payment cheques, if received. If

consignment returned due no payment, keep copy of slip / return date.7. Return all consignments to vendor requested by MMD.8. Notify parties of COMAT / import P/U’s.9. Give local P/U for COMAT / imports.10. Maintain trucking receipts, Q Note / air waybill files etc.11. Send freight for repacking.12. Answer telephone requests.

1.4.2 COMAT EXPORTS - 1

As regards COMAT, the handling agency is required to carry out exactly the same functions as for any Commercial Export shipment, with the difference that the making of the AWB and the labeling of all packages are done by Air India. For all purposes, it is exactly the same as any Commercial shipment. The functions of acceptance, documentation, computer feeding of data, labeling, handling of AOG including DG COMAT consignments, transferring of inbound COMAT consignments to final destination, maintaining a record of outbound/inbound COMAT. To liaise with RM-MMD for uplift of AOG/DG COMAT consignments.

Functions to be performed:

1. Freight received from UPS / FEDEX / other carriers.2. Load / store freight into bins according to date / section for delivery.3. Feed details of each shipment into Ragini computer to obtain Q Note / air waybill.4. Label freight (COMAT number / AOG / Must GO, etc. )5. Air India COMAT airway bills exempt from applicable AWB bill fee.6. Prepare paperwork for export, including AES data entry when required and manifesting in AI-

LMS for departure with copies to destinations, MMD and cargo office.

1.4.3 COMAT IMPORTS - 2

The prospective tenderers to confirm if they have the necessary facilities for the customs clearance of imports. In brief, the COMAT shipments are like any other commercial cargo shipments except that the documentation and labeling is done by Air India themselves.

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Tender no. GH/CGO/FRA/2016/ 031Functions to be performed:

1. Prepare / Type 3311 customs forms with copies for customs.2. When COMAT consignment cleared by customs, match custom papers with tally.3. Make labels for each consignment and attach same.4. Deliver to UPS / FEDEX / other approved carrier.5. Prepare paper work for information of MMD.6. Answer all telex/E-mails correspondence requesting for forwarding information from

Mumbai / MMD / Engineering.

1.5 General Cargo Handling Specifications

1. Liaise with local authorities.2. Indicate the Handling Company is acting as handling agent for Air India.3. Dispatch and receive all messages in connection with the services performed by the handling

company, using Air India originator code, as applicable. Maintain a message file containing all above-mentioned messages pertaining to each flight.

4. Maintain clean, well lit (access controlled) facilities for handling of cargo, protecting cargo from unauthorized access and weather.

5. Take appropriate action to prevent theft of, or damage to, cargo.6. Ensure safe operation of all equipment in facility.7. Provide acceptance/certification check for all dangerous goods to be handled per existing

procedures and regulations applicable to Air India.8. Obtain receipt upon delivery of cargo.9. Maintain all files ( e.g. security, dangerous goods, live animal, human remains, mail etc ) in

accordance with Air India and regulatory requirements.10. Check all documents to ensure shipment may be carried in accordance with Air India’s and all

applicable regulatory requirements.11. Place cargo under Customs’ control, if required, and clear discrepancies in accordance with local

regulations.12. Present to Customs, as required, cargo for physical examination.13. Take immediate action in accordance with Air India’s and/or local authorities’ instructions in

respect of irregularities, damage or mishandling of dangerous goods and special cargo shipments. Set up inspection services as required.

14. Report to Air India any irregularities discovered in cargo handling. Research and resolve air waybill discrepancy reports.

15. Handle lost, found and damaged cargo matters, as mutually agreed. ( Repair or repackage damaged containers/cartons for further carriage.)

16. Notify Air India of complaints and claims, giving supporting data.17. Resolve customer complaints at first point of contact within established guidelines.18. Non-delivery notices must be completed and mailed for unclaimed shipments.19. Take action in accordance with applicable instructions when consignee refuses acceptance or

payment.20. All import short shipments, damages and short landings must be telexed to the origin and transit

stations and a proper short shipment and / or damage report filled out.21. All irregularities must be marked and updated for quick response.22. Balance actual daily collections.23. Deposit collections in Air India account and maintain record.

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Tender no. GH/CGO/FRA/2016/ 03124. Collect all required collections & Forward all documentation pertaining to collection to the

Carrier’s Accounts Office.25. Handle company mail, as mutually agreed.26. All Stationary such as Customs clearing documents for import and export to be provided by

handling agent as per industry practice. For example carrier certificates, inbound transfer documents etc.

27. Handling Agent should provide his own internet access and computer to comply with Customs Regulations and submission of export declarations for comat.

28. Safe-guarding of Cargo and mail on round the clock basis in cargo warehouse(if required) and X-ray screening/physical examination/ observing 24 hrs cooling off period of cargo/mail for export cargo.

29. (Handling Agent shall not take this responsibility for export declarations.)

1.6 Cargo handling on Ramp side

a) The Handling Agent should have well equipped warehouse with truck docking facility for handling of AI cargo and co-mat, in Handling Agent's warehouse which should be inclusive in the quoted price.

b) The Carrier will retain a charges collect fee if any.c) The Handling Agent must be able to provide x-ray machine capable of scanning skids in full.

The screening must be performed by trained and certified personnel at the warehouse facility for x-raying of all joining/transit cargo and mail.

d) For transfer cargo destined onward, flight/trucking details should be entered in the AI system.e) The Handling Agency, on request, will provide one dedicated Customer Agent during normal

working hours. The Agent will handle enquiries, answer telexes, make arrangements for movement of special cargo and make bookings. The Customer Agent will function under the direction of AI personnel.

f) For all export and Transit cargo, 100% x-ray screening in accordance with TSA/BCAS/ EU regulation, should be followed.

g) A dedicated supervisory staff from the handling company will coordinate the carrier’s activities. Tarmac agent will also attend the flight.

h) For the handling of Dangerous goods shipments, the Handling Company shall provide special storage areas equipped with firefighting materials and suitable emergency equipment

i) All scales must be calibrated in accordance with local Laws and the records should be made available for inspection on request by carrier.

j) The handling company will perform special handling of valuable (VAL) and /or Vulnerable Cargo (VUN). The Handling company shall provide strong room facility for storage of VAL/VUN consignments.

k) The handling company should have refrigerated/ cooling units facility for storage of perishables shipments (PER).

l) The Restricted Article fee applicable on the revenue cargo will be retained by the Carrier.m) Dip-mail will be collected from aircraft and transferred to other airlines for re-forwarding to

final destinations.

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Tender no. GH/CGO/FRA/2016/ 031n) After off-loading of the aircraft the inbound cargo pallet and containers to be taken to AI

Cargo warehouse not later than 60 minutes of arrival. The departure cargo should be picked up from the Cargo warehouse and positioned under the aircraft for loading at least 15 Mins Before ETA. All cargo movement from/to aircraft and ramp must be under security escort and cargo should not be left unattended at any time.

ANNEX-IIISERVICE LEVEL AGREEMENT

Attachment to Annex B ___________. (The Annex II -Regarding resource requirement forms part of this SLA). This SLA is made between the representatives of Air India Limited (The Carrier) and ______________________________ (the Service Provider) at the location FRA concerning service delivery standards for the Cargo-ground handling services contracted between the two parties. This document is being singed to ensure that both parties are able to monitor and maintain high satisfaction level to carrier’s Customers.

The service elements outlined below are general and are based on prevailing industry standards. They can be extended/reduced or added to as agreed between the parties considering factors such as facilities available, infrastructure, type of aircraft operated etc. at the respective locations.

Preamble: This SLA will enable a quantified monitoring of services and to enable regular review of service standards. The Service Provider is aware that the delivery of service standards shall not compromise safety of procedures. The penalties levied by Carrier under this SLA does not require any notification under Paragraph 10 of Annex-VI.

Performance below Service LevelsThe performance below laid down Service standards and levels shall attract penalties. The penalties are specified under 2 parts hereunder. The penalties indicated at para Á,B,C of this Annex, shall be independent of parameters & penalties stated in Para D. The penalties, so mentioned in Para D, shall apply on the total monthly GH bills.

A. Punctuality (On Time Performance ) - Target : 100%

There will be no penalty for GH delay up to 05 minutes. However, for GH delay above 05 minutes, the percentage penalty of the handling charges of the flight shall be as under:

Delay Penalty06-15 10%16-30 minutes 15%31-44 minutes 25%45 minutes and above 50%

B. Aircraft Safety - Target : NIL Incident of Safety Breach of 59


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Criteria – Damage to aircraft by the act of Handling Company employee or the employee of its outsourced agency. Penalty - AI will reserve the right to impose the penalty of up to 100% of handling charges besides the clauses in the main agreement.

C. Security - Target : Nil security breaches (airport security directives, airport regulations, 100% , breach of ICAO regulations - Annex17, Customs, Security etc.,) within the responsibility and control of Handling Company.

Penalty: Reimbursement of fines/fees imposed on Air India .

D. Performance Parameters and Penalties -

Sr.No.

Service Requirement Penalty per flight if not complied (amount in

EURO)1. Dedicated Tarmac

Agent/ Coordinator01 for every flight 300

2. Cargo/Mail delivery

Inbound all cargo/mail delivered to Warehouse within 60 mts of chocks on

300

Outbound- positioned 15mts prior to ETA 300

4. DGR/AVI/VAL/ HUM loading/ offloading to Flight

DGR/AVI/VAL/ HUM loading/ offloading to Flight with no spillage in AIRCRAFT / Ramp & following regulations / guidelines of DGR loading/ offloading

1000 + any penalty by Local Authority at

Airport.

5. No damaged ULD should be loaded

All serviceable containers to be loaded. (as per SAFA guidelines)

2000 per incident

6. Proper handling and no damage to ULD

ULD not to be damaged at station with zero failures.

Cost of ULD

7. Arrival HUM/ AVI/ VAL/ DGR

To be moved from arrival bay/ ramp within 10 min after offloading

1000 + compensation paid by carrier to consignee

8. Information about arrival damage Container(if any)

Within 60 minutes of arrival to Air India representative.

Cost or Repair/ Replacement of ULD +

any penalty (ies)imposed on Carrier by regulatory/

audit agencies

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Tender no. GH/CGO/FRA/2016/ 031Sr. No.

Activity MonthlyTarget

Penalty for not meeting target

(% of monthly bill)8. Export Cargo reach airside for loading D-2 hrs 99% 1%

9.Dispatch incoming cargo to warehouse ATA+1 hr

98% 1%

10. ULD SCM/float message- weekly report 100% 1%

11. NOTOC (Cargo-DGR/AVI)to be presented to the Captain D – 1 Hrs.

100% 1%

12. Maintain ULD Float as per (not more than agreed allocated ULD float + 10 %)

100% 3%

13.DGR/AVI/VAL/ HUM acceptance strict to IATA regulations

100% 1%

14.Loading staff and Tarmac Cargo Agent to be DGR trained

100% 3%

15. Staff working in operational area to be trained in Airside Safety and SMS (Safety Management System).

100% 3%

16. Damage to A/c by an act of Handling Company or its Employee of its outsourced Agencies.

Nil Incident/ Accident

100% + as per Para 4 of Annex-B.

17. Any liability arising out of damage/loss caused to third party property/person due negligence of GHA employees/Outsourced employees or deficiency in the procedures.

Nil Incident

Any such liabilities or associated costs.

All above parameters shall be taken only wherever they relate to Handling Company and is within Handling Company’ responsibility & control. Handling Company to provide the handling report for certification by the authorized AI representative after each flight.

Signed the Signed theAt At

for and behalf of for and behalf of "the Service Provider" "the Carrier"

_________________ Air India LimitedName: ______________ Name: Divya SinghDesignation: ___________________ Designation: APM - Frankfurt

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Tender no. GH/CGO/FRA/2016/ 031(The contract administrator) (The contract administrator)

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Tender no. GH/CGO/FRA/2016/ 031ANNEX - IV

COMPREHENSIVE HANDLING SERVICES REQUIRED BY AIR INDIA AS PER IATA AHM 810, 2013 VERSION (including yellow pages* of 36th edition).

Section 1 –Management Functions

1.1.1, 1.1.2, 1.1.3, 1.1.4(Truck Only)1.2.1, 1.2.2, 1.2.3(f)(g)(h)(i), 1.2.4,1.3.1(b), 1.3.4, 1.3.6(For Collection of Cargo Documents and verification of ULD/Bulk Load), 1.3.7, 1.3.8, 1.3.9

Note:1.2.4 Maintain relevant, current and updated manuals for all the services in their office for reference any time.

Section 3 - Ramp Services

3.6.3-for Landside loading / unloading of trucks3.6.5(a)(2-between cargo warehouse & cargo transfer point)(3-upto over hand position of special shipment warehouse)(4- up to airmail center)(5)(6-in accordance with carrier’s instruction), 3.7.1(a-to the extent of the fire-fighting equipment installed on GSE-Tugs, Forklift etc),

Note:3.6.5- Movement between Cargo Warehouse and Neutral transfer point.Section 4 Load Control, Communication and Flight Operations(Limited to cargo related documents and communications only)4.1.2(2), 4.2.2Section 5 – Cargo and Mail Warehousing Services5.1.1(a)(1,2,3,4,5,6,8,9,10), 5.1.2, 5.1.3,5.2.1(a)(b)(3), 5.2.1(c)(d)(1)(2)(3),(*)5.3.1, 5.3.2, (*)5.3.3(a)(1,2)(Charge collect fee payable to Carrier), 5.3.4(a),(*)5.4.1, 5.4.2, (*)5.4.3(a)(b)(2)((i)(ii)(iii), 5.4.4, 5.4.5, (*)5.4.6(a-Airlines Truck)(b)(c)(d), 5.4.75.5.1, 5.5.2, 5.5.3(a)(1), 5.5.4,(*)5.7 - 5.7.1, 5.7.2, 5.7.3(first time tracing), 5.7.4, 5.7.5(Initial Action)

Section 6 - Support Services6.1.1(a-on additional charge) , 6.2.1(a)(1-LMS)(2), 6.2.2(a-LMS)(8)(9), 6.3.1(a)(2), 6.3.2, 6.3.3(weekly report-email at [email protected]), 6.3.4, 6.3.5(Cargo ULDs)

Note:6.3.1- For 15 LD3 containers & pallet sheet stock of 25 pallets.

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Tender no. GH/CGO/FRA/2016/ 0316.3.3(b)(weekly report sent to AI’s Representative)(6.3.5) Handling Company to notify carrier about damage Containers immediately on arrival in 60 mins.

Section 7 – Security Services

7.2.1(a)(1,2,3,4,5), 7.5.1(at additional cost)

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Tender no. GH/CGO/FRA/2016/ 031 ANNEX - V

HANDLING COMPANY PROFILE

Please furnish following information and other relevant information pertaining to your Handling Company in general and your facility and capability for Cargo Warehouse facilities and handling at Frankfurt International Airport, Frankfurt, Germany (FRA) in particular covering following:

Comply / Agree

Remarks / Info

1. Name, Address, Contact Telephone number, Fax number, e-mail address etc.

2. Brief resume of Handling Company specifying capabilities for providing various handling services to different aircraft at Frankfurt Airport.

3. Please specify the services you are offering from the following and confirm that you are Authorized/ Licensed Handling Agent at Frankfurt Int'l Airport for the services offered.

i Cargo Ware House Facilitiesii Cargo Ramp transportiii. X-ray Screening Facilities (machine)iv. ETD Screeningv Automatic Storage and retrieval systemvi Trucking Services4. Please give brief description of resources

held at Frankfurt International Airport & the date since when providing handling services at Frankfurt Int'l Airport.

a) Manpower (on Company’s pay roll)i Managerialii Supervisoryiii No of skilled personnel,iv Semi-skilled workmen

b) Assets : Offices, workshop facility etc.

c) Equipment : Number of Cargo Warehouse/ Handling Equipment held of each type like

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Tender no. GH/CGO/FRA/2016/ 031Storage Equipment, Computer systems, Fork Lifts, X-ray Machines Tugs etc.

d) Number of simultaneous Cargo Warehouse Facilities wide-bodied flights you can handle at FRA.

e) Number of flights that you will be required to handle when AI flights are on ground - Please specify Day-wise position giving flight details.

5. Experience as Handling Agent in Frankfurt International Airport.

6. Number of airlines handled at present at Frankfurt International Airport (FRA).

i Name of Airlinesii Services Providediii Type of Aircraftiv Type/ Name of Logistic Management

systems Handled (LMS)

7. Please confirm that you will be in a position to handle cargo AI flights in AI's own computerized LMS.

8. Please provide Handling Company’s approx. financial turnover annually - by way of providing ground handling service at Frankfurt International Airport.

9. Contact person for this tender with contact address, telephone No, email etc.

10. Please confirm that you comply with all requirements under IATA/ICAO/FAA/ FRA Aviation REGULATORY AUTHORITY(LOCAL), CASS, EASA, SAFA LOCAL AIRPORT REGULATOR local laws/rules related with safety, Labour, Airports Authority and any other applicable regulations.

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Tender no. GH/CGO/FRA/2016/ 03111. Please confirm that resources, procedures

and service standards as per Annex II will be met and that a Service Level Agreement will be discussed and entered into. In case of non-compliance, penalty clause to be discussed and agreed upon.

12. Liability & Indemnity and Standard Termination clause as per article 8 and 11 of IATA SGHA 2013 version must be acceptable to Handling Company. Please confirm.

13. Please confirm that you will be able to commence all services, as indicated in Annexure IV effective February 1st, 2017, provided the contract is awarded to you.

14. As an authorized Handling Agent, you are required to submit your offer for the "The Handling comprising of Cargo Handling and Warehouse functioning.

15. The Handling Company will be eligible for further Technical Evaluation if it obtains minimum 10 points in the “Requirement Grading in the table at Para 18 below. The commercial offer of only technically suitable parties will be opened.

16. MINIMUM EVALUATION / QUALIFYING CRITERIA

In order to assess the capability of service providers, who show interest in our selection process, point system of evaluation has been indicated in this process.

A. Minimum points to be obtained to qualify for the final Evaluation process is Ten(10).

B. The term “Ground Handling Services” means services meeting all Cargo Handling requirement as in Annex IV of this of ‘IATA SGHA (January 2013) & Yellow pages of AHM 36th edition’.

Sr. no. Parameter Points Party’s responsei) Number of years in the business of providing Ground Handling services for

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Tender no. GH/CGO/FRA/2016/ 031Sr. no. Parameter Points Party’s response

scheduled commercial Cargo flights at FRA.Less than 3 years. 03 to 5 years 16 to 9 years 310 years & above 5

ii) Number of airports where you have Ground Handling services set up for Cargo flight handling in Germany.One airport 12 to 5 airports 26 to 9 airports 310 airports & above 5

iii) Total number of scheduled client airlines to which you are providing Ground Handling services at Frankfurt International Airport (FRA).Less than 03 client 003 to 05 clients 106 to 10 clients 211 to 15 clients 316 to 20 clients 421 & more clients 5

iv) Maximum numbers of flights handled by Handling company during the year (2015) at Frankfurt, Germany (FRA)– Handling company who has provided the services,(less than 500 flights will not be considered for further evaluation.)500 – 1000 flts. 11001 -2000 flts. 22001 -3000 flts. 33001 -5000 flts 45001 & above 5

v) Number of scheduled Cargo flights(Wide Body) handled at the same time (bunching of flights) at Frankfurt international Airport (FRA).Less than 02 flights 002 – 04 flights 105 - 09 flights 210 - 15 flights 316 -20 flights 421 & above 5

vi) Safety Track Record-Nil Ground Incident and nil findings by SAFA at Frankfurt International Airport.Nil Incident for last 2 years 1Nil Incident for last 5 years 2Nil Incident for last 10 years 3

vii) The Annual Turnover in Ground Handling Business at Frankfurt, Germany in EURO.less than 3 million 0

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Tender no. GH/CGO/FRA/2016/ 031Sr. no. Parameter Points Party’s response

3 to 5 millions 16 to 10 millions 210 to 20 millions 3More than 20 millions 4

viii) Number of Accreditations / Certifications/Approvals for Ground Handling services held at Frankfurt.One 1Two 2Three 3Four 4Five & above 5

ix) No of Star Alliance Airlines handled (Indicate Airlines Names) by Service provider at FRA.Nil Airlines 001-03 Airlines 104-06 Airlines 27 or More Airlines 3

x) Is Service Provider ISAGO certified?Yes 3No 0

18 Integrity pact and Integrity Pact program must be acceptable to you. Please confirm.

19 PLEASE DO NOT QUOTE PRICE IN RESPONSE TO THIS ANNEXURE.

All responses to be signed by Authorized Signatory with company Seal.

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Tender no. GH/CGO/FRA/2016/ 031ANNEX – VI

COMMERCIAL OFFER

Quotation for providing comprehensive services as per service requirements listed in Annex IV for respective services and meeting the resources required / procedures and service standards as in Annexure II for handling of Air India flights (B777-200/300/ B787-800/900/A330-200 Transit/Turnaround) at Terminal 01, Frankfurt International Airport, Frankfurt (FRA).

Please note, your quotation must be in the form of Annex B, simplified version of IATA SGHA January 2013, with the rates as in the following format.

PARAGRAPH 1 - HANDLING SERVICES AND CHARGES

1.1 For a single ground handling consisting of the arrival and the subsequent departure at agreed timings of the same aircraft, the Handling Company shall provide the following services (Same as in Annex-IV) of this SGHA at the following rates in EURO.

1.1.1 Services Sections/Terms (Cargo warehouse, ramp and facilities Handling) services required by Air India as per IATA AHM 810, 2013 Version (including yellow pages* of 36th edition).

Section 1 –Management Functions

1.1.1, 1.1.2, 1.1.3, 1.1.4(Truck Only)1.2.1, 1.2.2, 1.2.3(f)(g)(h)(i), 1.2.4,1.3.1(b), 1.3.4, 1.3.6(For Collection of Cargo Documents and verification of ULD/Bulk Load), 1.3.7, 1.3.8, 1.3.9

Note:1.2.4 Maintain relevant, current and updated manuals for all the services in their office for reference any time.

Section 3 - Ramp Services

3.6.3-for Landside loading / unloading of trucks3.6.5(a)(2-between cargo warehouse & cargo transfer point)(3-upto over hand position of special shipment warehouse)(4- up to airmail center)(5)(6-in accordance with carrier’s instruction), 3.7.1(a-to the extent of the fire-fighting equipment installed on GSE-Tugs, Forklift etc),

Note:3.6.5- Movement between Cargo Warehouse and Neutral transfer point.Section 4 Load Control, Communication and Flight Operations(Limited to cargo related documents and communications only)4.1.2(2), 4.2.2

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Tender no. GH/CGO/FRA/2016/ 031Section 5 – Cargo and Mail Warehousing Services5.1.1(a)(1,2,3,4,5,6,8,9,10), 5.1.2, 5.1.3,5.2.1(a)(b)(3), 5.2.1(c)(d)(1)(2)(3),(*)5.3.1, 5.3.2, (*)5.3.3(a)(1,2)(Charge collect fee payable to Carrier), 5.3.4(a),(*)5.4.1, 5.4.2, (*)5.4.3(a)(b)(2)((i)(ii)(iii), 5.4.4, 5.4.5, (*)5.4.6(a-Airlines Truck)(b)(c)(d), 5.4.75.5.1, 5.5.2, 5.5.3(a)(1), 5.5.4,(*)5.7 - 5.7.1, 5.7.2, 5.7.3(first time tracing), 5.7.4, 5.7.5(Initial Action)

Section 6 - Support Services6.1.1(a-on additional charge) , 6.2.1(a)(1-LMS)(2), 6.2.2(a-LMS)(8)(9), 6.3.1(a)(2), 6.3.2, 6.3.3(weekly report-email at [email protected]), 6.3.4, 6.3.5(Cargo ULDs)

Note:6.3.1- For 15 LD3 containers & pallet sheet stock of 25 pallets.6.3.3(b)(weekly report sent to AI’s Representative)(6.3.5) Handling Company to notify carrier about damage Containers immediately on arrival in 60 mins.

Section 7 – Security Services

7.2.1(a)(1,2,3,4,5), 7.5.1(at additional cost)

1.1.2 Charges for handling Air India Cargo- Import and Export, COMAT & Mail, for a contract period of three Years, in the format given below. (Cargo/Mail Handling charges)

1.1.2(a) Handling Charges:Particulars Type of Cargo Carriage. Handling Rates / KG in

EURCredit to Carrier per KG in EUR

1Cargo Handling including Mail

Imports: Loose CargoImports: Unitized (BUP)Exports: Loose CargoExports: Unitized (BUP)Unitized (BUP) rate of LD7 for Import and export will be less than Euro 55 per unit.

2 Courier Import:Export:

3 COMAT ImportExport

No charges for Air India COMAT

4 Import Terminal storage and processing

Imports: Loose Cargo

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Tender no. GH/CGO/FRA/2016/ 031Particulars Type of Cargo Carriage. Handling Rates / KG in

EURCredit to Carrier per KG in EUR

Charges to be levied to Consignee

5 Export Terminal storage and processing Charges to be levied to Consignee.

Exports: Loose Cargo

Export: Unitized

Rates in EUR % Share to Carrier

6 Export DGR Acceptance and Handling Charges

Per UN No. or Piece

Per Airway Bill (Max)

The above quoted charges are inclusive of:a) All services of Para 1.1.1 of this Annex-VI.b) ULD storage Space, load sheet and NOTOC, Build-up/break down of all ULD

(Palletized/containerized) and bulk loaded Cargo, mail and courier.c) Cargo, Mail, COMAT and Courier handling charges.d) Cost of plastic foil, sheets, paper and ULD covers, lashings, Packing tape, shrinkwrap, skids/

spreaders and beams. etc. used on export cargo.e) All taxes, conditions, limitations, restrictions, surcharges, levies, royalties that may be

applicable.f) All Resource requirement, Procedure, Service levels and Requirements of Annex-II, III and

IV.g) All Documentation, processing, cargo screening and Customs clearance for

Cargo/Mail/COMAT(if any).h) All Physical and Document Handling of Export/ Import Cargo.i) Mail scanning and Capture of MAWB.j) Any Security fee applicable to cargo handling.k) Data Capture/ correction export AWB for CASS, HAWB data Capture.l) DGR import acceptance check charges

The list of exclusions, if any, with respect to above quoted charges to be provided

1.1.2(b) X-ray Screening charges ( for Export cargo)

I. Per KG rate: ________ EuroII. Maximum screening charges per flight ______ Euro.

Note:

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Tender no. GH/CGO/FRA/2016/ 031A. The above x-ray charges will be levied either per KG rate basis or Maximum screening

charge basis (whichever is lower)B. The above charges include

All services and manpower of Sub-section 7.2.1 of Para 1.1.1 of this Annex-B. VAT for X-ray payable to Terminal Security Provider

Note: Lowest quote shall be calculated based on the total cost to the carrier after taking into account- Handling rates at para 1.1.2(a), X-ray Screening charges quoted at para 1.1.2(b)(II) and applying credits offered at para 1.1.2 at current volume of cargo carriage after adding taxes and other charges if any applicable on Daily flight as indicated para 1.1.

1.2 The carrier may display its signage and corporate logo on the Handling Company’s facilities. The carrier may provide its own signage if it wishes, signage must meet the specification of Frankfurt International Airport.

1.3 Handling Charges, TSP charge Credit and man-hour rates quoted in Para 1 and para 2 shall remain firm for three years.

1.4 All non-revenue COMAT Handling of Air India will be at no additional cost.

1.5 There will be no charge for flight cancellations. No extra charge will apply for delayed arrival / Departure.

1.6 No Escalation in Handling Charges shall apply in case of Change in Schedule of Operations.

1.7 The Carrier will provide the Handling Company with access to its operating system to perform the services itemized in this agreement.

1.8 The Handling Company will operate the carrier’s L.M.S. system and make daily AWB entries.

1.9 Specify all taxes that may be applicable on the quoted rates in sub-paragraph 1.1.2 and 1.1.3 of this Annex.

1.10 No additional charge should be levied to AI for handling during nights, holidays, weekends, Bank holidays, off days or for overnight stay.

1.11 Handling company to confirm the take over of the Handling of Carriers flights with effect from February 1st, 2017, if the contract is awarded to you.

1.12 In addition to the Article 1.6 of the Main agreement, in the event of an accident or incident involving the carrier’s aircraft which causes the carrier to activate its emergency plan, the Handling Company will utilize the emergency plan as agreed between the parties responding to such situation and to assist survivors and families.

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Tender no. GH/CGO/FRA/2016/ 0311.13 All charges are calculated based on Actual Weight. In case of Cargo shipped on Handling

Company Trucking Network, all charges will be calculated on chargeable weight (in case of volumetric weight cargo shipment).

1.14 In case of non-delivery of import cargo, the handling company will inform the carrier and action as per the instructions from the carrier. No charges shall be levied to the Carrier for such instances, unless due to by the Carrier.

1.15 Handling in case of return to ramp will not be charged extra, provided that a physical change of load is not involved. In case of physical change of load and re-manifesting requirement (any form of double handling) shall be charged at 20% of the rates specified in Paragraph 1.1, except when the return is as a result of mis-handling by the Handling Company, whereby no additional handling charge will be levied. Such mishandling includes improper preparation of ULDs.

1.16 Technical handling , partial change of load involving allocation of resources by cargo handling company, charges for actual resource allocation will be payable. Any additional work resulting in additional costs must be pre-approved by the Carrier’s local representative.

1.17 All Cargo Staff on the ramp and Cargo warehouse must be trained with all requisite certificates as required by Local Aviation/ Airport Operator including Safety Management System(SMS). Only authorized ramp staff should deal with Loading /offloading/ transportation of DGR of all Classes in liaising with Cargo Staff.

1.18 Handling Company will extent necessary cooperation during periodic audit by the safety and regulatory agencies.

1.19 All prices include a single top and bottom layer of plastic sheeting for ULD wrapping,stress boards, tie down rope & heavy duty stressing boards. The Carrier shall supply ULD straps and tie down rings.

1.20 The Handling Company will take weekly inventory of ULD stock and maintain the ULD stock of the station covered by this Annex B. The Handling Company shall provide storage for 15x LD3 and 25x Pallets for Air India cargo ULD’s. This ULS inventory is for daily flight and will increase with the increase in frequency.

1.21 The Handling Company shall be entitled to use the Carrier’s originator code or double signature procedure in all messages dispatched on behalf of the Carrier.

PARAGRAPH 2 -ADDITIONAL SERVICES AND CHARGES

2.1 List of Services not included in paragraph 1 above are to be on additional charge as listed below:

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Tender no. GH/CGO/FRA/2016/ 031S/no. Manpower/Services/Equipment Unit Rates in

EURO1 Customer Agent Per Hour2 Cargo Supervisor Per Hour3. Sniffer Dog Per flight4. Customer Agent / Cargo service agent Per Month 5. Cargo Office Space as item 6.1.1(a)

inclusive of Maintenance, Cleaning & Utilities charges inclusive of all taxes and charges

Per Month per Square meter

Others if any

2.2 All other services not included in Paragraph 1 of this Annex B shall be charged at 10 % discount on the current local rates at the applicable tariffs of the Handling Company prevailing at the date on which the service(s) are provided. The Handling Company will provide the Carrier with a price list (terminal handling charges tariff) for all common additional services and will provide the carrier with updates to this list in case of changes.

2.3 The rates set out in Paragraph 1 and Paragraph 2 will remain firm and fix for the complete contract tenure. The Handling Company has to absorb any hike on account of Consumer Price Index (CPI) in the country.

PARAGRAPH 3 -DISBURSEMENTS3.1 Any disbursement made by the Handling Company on behalf of the Carrier will be reimbursed by the carrier at actual cost price.

PARAGRAPH 4 -LIABILITY AND INDEMNITY4.1 The limit of liability in accordance to Sub-Article 8.5 of the Main Agreement of SGHA version 2013 shall be Limit (Per Incident) in USD 1,500,000.

4.2 Notwithstanding Article 8.1, Handling Company shall be liable for the compensation paid towards mishandling, damage to, delay or loss of cargo or mail due reasons attributable to the Handling company.

4.3 Handling Company will indemnify Carrier against any liability arising as a result of transfer of services to new Company, including but not limited to the employee(‘s) liabilities of the transferring company as per local regulation,

PARAGRAPH 5 - AREA OF RESPONSIBILITY INCLUDING SUPERVISION, QUALITY CONTROL AND ADMINISTRATION5.1 The area of responsibility as mentioned in sub-sections 4.3 and 4.6 of Annex-A is: Frankfurt International Airport.

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Tender no. GH/CGO/FRA/2016/ 0315.2 In addition to sub-article 5.1 of the Main Agreement, the Handling Company will maintain an acceptable level of training recognized by IATA in order to meet the requirements and instructions of the carrier when providing services with a safety aspect such as handling and transportation of Cargo including dangerous goods.

5.3 All training cost and expenses of the Handling Company’s personnel pertaining to Carrier’s LMS or system cutover, or such training as may be required in line with Sub –Article 5.8 of Main Agreement will be borne by Handling Company, carrier will bear the cost of it’s trainer for initial training. All costs arising from the working hours of the Handling Company’s staff resulting from the Carriers specific training requirements as reasonably required by the Carrier will be borne by the Handling Company. No cost will be levied to carrier for deputing GHA staff for such Trainings. The Handling Company shall be responsible, at its own cost and expense, for any additional training required due to employee turnover or course failures. However initial training for commencement of Operations will be provided by Carrier.

5.4 Should the Carrier require the Handling Staff to be trained due to new or changed procedures specific to the Carrier, all costs related to such training shall be borne by the Carrier, however handling company will not charge the carrier for positioning it’s staff for such training if organized at Frankfurt.

5.5 The Handling Company shall allow the Carrier access at all reasonable times, by appointment, to audit and copy records, correspondence, instructions, memorandums of every description relating to this agreement. The Handling Company shall fully cooperate with the Carrier, provide free access to its premises ( complying with the current security rules ), places of work, procedures manuals, records, Certificates and training programs, provided this audit is directly related to the Handling Company’s handling activities under this Annex B.

5.6 To ensure proper execution of this Annex B, the parties shall hold performance review meetings on a monthly basis. During such meetings, the Parties shall discuss about operational aspects such as quality indicators, operating problems, incidents, remedial actions, instructions, and performance measurements, coordination of schedule changes and development of action plans, as necessary. The minutes of the meetings shall be kept by each Party for the duration of this Annex B.

5.7 The Handling Company shall designate one person at the location for which this Annex B is valid who serve as the Carriers contact for all the matters relating to this agreement. The Handling Company’s contact person shall meet the Carriers representative on a regular basis. The meeting shall be used in particular to exchange information on possible improvements to administrative procedures and to the quality of the products and services provided by the Handling Company and to agree on any actions required to affect the same.

PARAGRAPH 6.TRANSFER OF SERVICES6.1 In accordance with Sub-Article 3.1 of the main Agreement, the Handling Company plans to Subcontract following services:

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Tender no. GH/CGO/FRA/2016/ 031Section Service Company

6.2 The carrier’s prior written permission will be sought by the Handling Company before entering into any subcontracting agreement in a timely manner.PARAGRAPH 7 – PAYMENT:

7.1 The Handling Company shall invoice the Carrier in (EURO/ €) on a monthly basis of all activities arising from the provision of handling services handled through its facilities and all other services rendered under this Annex B.The invoice shall be sent to:

Air India Ltd.. Gutleutstr. 80 D-60329 Frankfurt am Main Frankfurt, Tel no 0049-69-25600414Email: [email protected]

7.2 The handling Company will send an email containing a “.pdf” version of the invoice to following address: [email protected]. The date of the email will be considered the date of receipt of the invoice by the Carrier. The identical invoice will be sent as the original hardcopy to the Carrier thereafter.

7.3 Notwithstanding Sub–Article 7.2 of the main Agreement, payment settlement of account and remittances of freight charges due to the Carrier and charges collect shall be effected locally in local currency (EURO), on monthly basis within 30 days of receipt of invoices by carrier locally.

7.4 Payment shall be issued to the Handling Company by Carrier on the following Account information:

Name of the Acoount:Account Number:Name of the Bank:Bank Address:

7.5 The Handling Company shall collect on behalf of the Carrier all Freight Charges Collect (“CC-Charges) and transmit same to the Carrier in accordance withn the Carrier’s cash and credit policy. The Carrier will invoice the Handling Company on uplifted Air Way bills for airports covered by this Annex B for terminating shipments only. All charges collect fees and carrier’s share of terminal handling charges will be reimbursed to the Carrier.

7.6 The Carrier requires accurate supporting documentation (as mutually agreed) to substantiate all charges. For the avoidance of doubt, any ad-hoc services requested by the Carrier will at all times be in written form (via email of fax) to enable the Handling Company to effectively carry out such services.

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Tender no. GH/CGO/FRA/2016/ 031The Carrier Valid EORI number: DE2000113The Carrier intra-community VAT registration number: DE264803221

PARAGRAPH 8 - DURATION, MODIFICATION AND TERMINATION

8.1 This Annex B shall be effective from February 1st, -2017 and shall continue in force for a period of three years or until terminated by either party giving 60 days’ notice in writing to other party in accordance with Article 11 of the Main Agreement of SGHA 2013 version. However in case of discontinuation of Carrier’s flight operations, termination will be without such notice. The Annex–B can be extended for another two years subject to performance review by Air India six months prior to end of 3rd and 4th year of the contract at Carrier’s discretion.

8.2 Notwithstanding Sub-article 11.11 of the Main Agreement, the Ground Handling rates as specified in Para 1 & 2 of this Annex B will remain firm for the complete duration of the contract (ie. for the period of 3 years) and no escalation for any reason would apply.

8.3 Notwithstanding Sub-article 11.2 of the Main Agreement, any modification with 60 days prior notice shall be in the form of an Annex B including one made in this Annex B and remain valid only if agreed and signed by the handling Company and the Carrier’s representative.

PARAGRAPH 9- CONFIDENTIALITY, DATA PROTECTION AND GOVERNING LAWS

9.1 The carrier and the Handling Company agree not to reproduce this Annex or to distribute it to others, in whole or in part, at any time, and permanently to keep confidential all information contained with the Annex and all information made available by the Handling Company and the carrier to each other during its negotiation or in the provision of the services.

9.2 In the provision of the services under this agreement the handling Company shall use reasonable measures to prevent the unauthorized disclosure, processing, capture, transmission or use of information relating to identified or identifiable individuals ( including customers and employee data ) which has been collected by or on behalf of the carrier. The Handling Company agrees not to use such information other than for the purposes of performing the services or as instructed by the carrier.

9.3 In accordance Article 9 of the Main Agreement, this Annex shall be governed by and interpreted in accordance with the substantive laws of land where services are being rendered.

PARAGRAPH 10 –NOTIFICATION

10.1 (i) In accordance Sub-article 11.3 of the Main Agreement, any notice or communication hereunder shall be given to the respective parties as follows:

To Carrier: To Handling Company:Air India Ltd.

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Tender no. GH/CGO/FRA/2016/ 031Executive Director-Ground HandlingRoom No-423, 113, Airlines House,Gurudwara Rakabganj Road, New Delhi-INDIA-110001Telephone: +9111 23422 144, Email: [email protected]

PARAGRAPH 11 – DECLARATION11.1 "It is expressly understood and agreed by and between ____________Ltd. ( German-Firm) and Air India Ltd. (the Indian PSU) that Air India Ltd. is entering into this agreement solely on its own behalf and not on behalf of any other person or entity. In particular it is expressly understood and agreed that the Government of India is not a party to this agreement and has no liabilities, obligations or rights hereunder. It is expressly understood and agreed that Air India Ltd. is an independent legal entity with power and authority to enter into contracts solely in its own behalf under the applicable laws of India and general principles of Contract Law. ____________expressly agrees, acknowledges and understands that Air India Ltd. is not an agent, representative or delegate of the Government of India. It is further understood and agreed that the Government of India is not and shall not be liable for any acts, omissions, commissions, breaches or other wrongs arising out of the contract. Accordingly ,_____________Ltd. hereby expressly waives, releases and forgoes any and all actions or claims, including cross claims, impleader claims or counter claims against the Government of India arising out of this contract and covenants not to suit the Government of India as to any manner, claim, cause of action or things whatsoever arising of or under this agreement.

PARAGRAPH 12 - SERVICE LEVEL AGREEMENT & INTEGRITY PACT

12.1 The executed Service Level Agreement, to be attached to Annex B as Annexure and will form integral part of the SGHA.

12.2 The executed Integrity Pact, to be attached in this Annex B as Annexure.

12.3 The Handling Company agrees to provide the services in accordance with the Services Standards as required by the Carrier.

Handling Company Authorized Seal with signature

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Tender no. GH/CGO/FRA/2016/ 031Annex VII

INTEGRITY PACT PROGRAM

I. INTRODUCTION

Air India Ltd. is a premier Public Sector airline (formed with the merger of the erstwhile Air-India and Indian Airlines) engaged in air transportation of passengers and cargo in India and abroad. The brand name of the Company is AIR-INDIA 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). Air India Limited is committed to fostering the most ethical and corruption free business environment. Air India Limited values its relationships with all Counterparts and deals with them in a fair and transparent manner.

In order to achieve these goals, Air India Limited 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, Air India Limited will, in consultation with CVC, appoint external Independent Monitors who will help Air India Limited 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 Air India Limited’s Integrity Pact Program are broadly based on :-

- Commitments and Obligation of Air India Limited and its employees - Commitments and Obligation of Counterparties- Violation and Consequences- Independent Monitor- Implementation Guidelines- Role of Independent Monitors.

II. COMMITMENTS AND OBLIGATION OF Air India Limited

a. Air India Limited is committed to have the most ethical and corruption- free business dealings with its Counterparties.

b. Air India Limited values its relationship with all Counterparties and will deal with them in a fair and transparent manner.

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c. Air India Limited 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.

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

e. Air India Limited will exclude all Associates who may be prejudiced or have a Conflict of Interest in dealings with Counterparties.

f. Air India Limited will honour its commitments and make due payments to Counterparties in a timely manner.

g. Air India Limited 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 any one to gain undue advantage in dealing with the Principal, Air India Limited.

b. The Counterparty will not engage in collusion, Price-Fixing, etc. with other Counterparties in dealing with the Principal, Air India Limited.

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 and

ii. If it comes to know of any unethical or illegal practice in the Principal’s organization (Air India Limited)

iii. If it makes any payment to any of Air India Limited’s Associates.

f. The Counterparty will not make any false or misleading allegations against Air India Limited or its Associates.

IV. VIOLATIONS & CONSEQUENCES

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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 Air India Limited 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. Incase of violation of the Integrity Pact whereby after award of the Contract the Principal (Air India Limited) terminates or is entitled to terminate the Contract, Air India Limited shall be entitled to demand and recover from the Contractor liquidated damages 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. Air India Limited 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. Air India Limited 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 (Air India Limited) or its Associates (i.e. employees, agents, consultants, advisors, etc.), Air India Limited undertakes to take appropriate action against them.

f. If the complaint made by a counter party 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, Air India Limited, 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 Air India Limited and the same may be referred to CVC for clearance.

2. The Independent Monitor will be a person of Impeccable Integrity, Knowledgeable of Air India Limited’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 Air India Limited. The remuneration and perquisites would be similar to the remuneration/perks of independent Directors on the Board of Air India Limited.

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Tender no. GH/CGO/FRA/2016/ 0314. 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 Air India Limited’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 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., Air India Limited.

8. If the Independent Monitor observes or suspects an irregularity, he will inform the Chairman of Air India Limited. 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 Air India Limited 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 Air India Limited’s plans to implement Integrity Pact program, which is to be Included in Air India Limited’s web site and also disclose this initiative to the media.

VII. PERIODIC REVIEW & EVALUATION

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Tender no. GH/CGO/FRA/2016/ 031It is recommended that the Board of Directors of Air India Limited periodically review the effectiveness of Integrity Pact Program by all or some of the following measures:-

1. The Independent Monitors and senior leadership of Air India Limited 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 Air India Limited.

3. Air India Limited 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. Air India Limited should meet with CVC on an annual basis to review the effectiveness of the program.

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Tender no. GH/CGO/FRA/2016/ 031INTEGRITY PACT

Between

Air India Ltd. 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 (Company’s Name).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 (IEM), 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 a 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.

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 prospective 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.

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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 Air India Limited. 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. Copy of the “Guidelines on Indian Agents of Foreign Suppliers” is placed at (Page nos. 6-7)

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 Contractor/Bidder and in the agreement entered into by the Principal with the Contractor/Bidder.

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.

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Tender no. GH/CGO/FRA/2016/ 031Section 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. 8-16.

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 Performance Bank Guarantee.

3. The Contractor/Bidder 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 conforming to the corruption approach or with any other Public Sector Enterprise in India that could justify his exclusion from the tender process.

2. If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender process or 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 agreements 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.

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Tender no. GH/CGO/FRA/2016/ 031Section 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.

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 agreement.

2. The Monitor is not subject to instructions by the representatives of the parties and performs his functions neutrally and independently. He shall report to the Chairman, Air India Limited.

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 his 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 agreement, 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, Air India Limited 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 Air India Limited Board.

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8. If the Monitor has reported to the Chairman Air India Limited, a substantiated suspicion of an offence under relevant IPC/ PC Act, and the Chairman Air India Limited 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 DurationThis 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 board of AI.

Section 10 - Other provisions1. This agreement is subject to Indian Law, Place of performance and jurisdiction is the

Registered Office of the principal ie Delhi.2. Changes and supplements as well as termination notices need to be made in writing. Side

agreements have not been made.3. If the contractor is a partnership or a consortium, this agreement 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 agreements turn out to be invalid, the remainder of this agreement remain valid. In this case the parties will strive to come to an agreement to their original intentions.

_____

Regards,For Gagan Chabbra,

Manager-FRA

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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 Air India Limited 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 Air India Limited 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 Tenderers 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 be a 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 Tenderer that the commission/ remuneration if any, payable to his agents/representatives in India, may be paid by Air India Limited in Indian Rupees only.

2.2 Tenderers 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.

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Tender no. GH/CGO/FRA/2016/ 0312.2.2 The amount of commission/remuneration included in the price (s) quoted by the Tenderer

for himself.

2.2.3 Confirmation of the foreign principals of the Tenderer that the commission/remuneration, if any, reserved for the Tenderer in the quoted price (s), may be paid by Air India Limited 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 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 tender liable to rejection or in the event of a contract materializing, the same liable to termination by Air India Limited. Besides this there would be a penalty of banning business dealings with Air India Limited or damage or payment of a named sum.

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Tender no. GH/CGO/FRA/2016/ 031GUIDELINES ON BANNING OF BUSINESS DEALINGS

CONTENTS

S.No.

Description Page(s)

1. Introduction 9

2. Scope 9

3. Definitions 10

4. Initiation of Banning / Suspension 11

5. Suspension of Business Dealings 11-12

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

12-13

7. Banning of Business Dealings 13-14

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

14-15

9. Procedure for issuing Show-cause Notice 15

10. Appeal against the Decision of the Competent Authority 15

11. Review of the Decision by the Competent Authority 15

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

16

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Tender no. GH/CGO/FRA/2016/ 0311. Introduction

1.1 Air Ltd., 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. Air India Limited has also to safeguard its commercial interests. Air India Limited 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 Air India Limited 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 Air India Limited 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 Air India Limited generally provide that Air India Limited 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.

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 (Air India Limited) 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 Air India Limited.

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Tender no. GH/CGO/FRA/2016/ 0312.6 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 prospective effect, i.e., future business dealings.

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, 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;

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

a. For Company (entire Air India Limited) Wide Banning The Executive Director – SBU in charge of Procurement shall be the ‘Competent Authority’ for the purpose of these guidelines. Chairman, Air India Limited 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 Air India Limited Board as Second Appellate Authority.

c. For Departments / Stations onlyAny 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 onlyFor 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”.

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Tender no. GH/CGO/FRA/2016/ 031e. Chairman, Air India Limited 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.

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 Air India Limited 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 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 Air India Limited 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.

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Tender no. GH/CGO/FRA/2016/ 0315.3 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 Air India Limited, as a whole, to deal with such an Agency pending investigation, the Competent Authority may send his recommendation to Chief Vigilance Officer (CVO), Air India Limited 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 Air India Limited 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.

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

i. Suspension of the foreign suppliers shall apply through out the Company including Subsidiaries.

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 Air India Limited 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 Air India Limited 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.

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Tender no. GH/CGO/FRA/2016/ 0315.6 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 Air India Limited, 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;

6.4 If the Agency continuously refuses to return/refund the dues of Air India Limited 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 (Air India Limited) 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;

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Tender no. GH/CGO/FRA/2016/ 0316.10 Wilful indulgence by the Agency in supplying sub-standard material irrespective

of whether pre-despatch inspection was carried out by Company (Air India Limited) 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 (Air India Limited) 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 (Air India Limited), 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. 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 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.

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.

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Tender no. GH/CGO/FRA/2016/ 031The 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 Air India Limited.

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.

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.

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Tender no. GH/CGO/FRA/2016/ 0318.2 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 Air India Limited, 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 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

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Tender no. GH/CGO/FRA/2016/ 031subsequent 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, Air India Limited 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.

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ANNEX-VIIICheck List to be submitted along with Technical Bid

Sr.No.

Requirements. Check Box

TECHNICAL BID.1 Handling Company Profile as per Annex V.2 Relevant documents to establish eligibility (eg. Authorisation from

Airport operator, approval of local regulatory bodies including Civil Aviation Authority, Experience and qualification of personnel etc.)

3 Service requirement as per Annex IV.

4 Acceptance of standard termination clause as per IATA SGHA 2013.(Refer Para 8 of Annex VI.)

5 Lead time for commencement of services.

6 Acceptance of Annex II, IV, V, VII and duly signed SLA as in Annex III.

7 No price quote in technical bid.

8 Letter from Company authorising person to sign all the Offer Documents.

9 Envelope clearly indicating technical offer for Comprehensive services to Air India Flights at FRA and the name of Handling Company.

COMMERCIAL OFFER1 Rates in Para 1 of Annex VI quoted are as per the format.2 Carefully read the note regarding calculation of Lowest offer.3 Acceptance of all the para and sub-para of Commercial offer.4 All the papers of tender document and quotation have been signed

and stamped by the person authorised by handling Company.5 Envelope clearly indicating commercial offer for Comprehensive

services to Air India Flights at FRA and the name of Handling Company.

6 Services and format in Commercial bid are same as in the technical bid and these services are included in the basic handling charge.

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