Index 91 (FINAL) 12 April 12aaians.org/sites/default/files/CNS Documents/ANS... · v 13.7 Loss of...

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INDEX

Sr. DESCRIPTION Page

No. No.

1. GENERAL 1 - 4

1.1 Introduction and Scope

1.2 Objective of ANS Procurement Manual

1.3 General Explanations

1.4 Mode of Procurement

1.5 Procurement Process

2 INDENTING & IN-PRINCIPLE APPROVAL OF PROJECT 5 - 8

2.1 Indenting

2.2 Indents for provision of new facilities

2.3 Indents for replacement of old equipments/systems

2.4 Indents for expansion of existing system

2.5 Indents for induction of new technology

2.6 Indents for procurement of spares

2.7 Indent for Hardware Repair Support and Software

Maintenance Contract/Annual Maintenance Contract

2.8 In-principle approval

3 BUDGETING 9 - 12

3.1 Introduction

3.2 Budgeting Process

3.3 Custodian for CNS Budget

3.4 Identification & Justification of the Scheme

3.5 Budget Formats

3.6 Expenditure Budget

3.7 Budget Control and Monitoring

3.8 Appropriations and Re-appropriations

4 PROJECT COST ESTIMATES & AA&ES APPROVAL 13 - 17

4.1 Introduction

4.2 Sources for cost estimate

4.3 Preparation of cost estimate

ii

4.4 Administrative approval and Expenditure sanction

4.5 Preparation of estimated expenditure

4.6 Power to accord administrative approval and

expenditure sanction

4.7 Permissible excess over AA&ES

4.8 Other content

4.9 Issue of AA&ES

4.10 Survey Reporting Requirement

5 TECHNICAL SANCTION & NOTICE INVITING TENDER APPROVAL 18-21

5.1 Introduction

5.2 Technical Specifications and System configuration

5.3 Technical sanction (TS) Proposal & approval for

Technical Specification

5.4 Notice Inviting Tender (NIT) / Pre-qualification

Notice (PQN)

5.5 NIT/PQN Terms & Conditions

5.6 Tender Document

6 TENDER PROCESS 22-44

6.1 Introduction

6.2 Tendering Process

6.3 Changes / Alterations in tender document

6.4 Important Clauses of tender document

6.5 Earnest Money Deposit

6.6 Price

6.7 Payments to suppliers

6.8 Delivery terms & schedule

6.9 Mode of dispatch

6.10 Warranty Terms

6.11 Scope of work and AAI responsibility

6.12 Training Schedule

6.13 Liquidated Damages

6.14 Testing Procedure

6.15 Spare requirements

6.16 Validity of Tender document

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7 ISSUE OF TENDER DOCUMENT AND SUBMISSION OF BIDS 45-50

7.1 Introduction

7.2 Publishing of NIT / PQN

7.3 Publicity of Tenders

7.4 Time Limit for publicity of tender

7.5 Issue of Tender documents

7.6 Tender Corrigendum

7.7 Scale of Charges for Tender Documents

7.8 Submission of Bids

7.9 Receipt of tenders by post, FAX or Email

7.10 Extension of Tender closing/submission/opening date

7.11 E-Tendering

8 ELIGIBILITY QUALIFICATION & TECHNICAL EVALUATION 51-55

8.1 Introduction

8.2 Tender Opening Committee

8.3 Opening of Tenders

8.4 Evaluation of Tenders

8.5 Eligibility Evaluation

8.6 Technical Evaluation and Recommendation

9 OPENING OF FINANCIAL BIDS, FINANCIAL EVALUATION 56-59

AND ACCEPTANCE

9.1 Introduction

9.2 Opening of financial bids

9.3 Evaluation of Financial Bids

9.4 Financial Negotiation

9.5 Formulation of negotiation committee

9.6 Acceptance of Financial Bid

9.7 Signing of Contract Agreements

10 ISSUE OF PURCHASE/WORKS ORDER AND, SIGNING OF 60-63

AGREEMENT

10.1 Introduction

10.2 Issue of Letter of Intent (LOI)

10.3 Acceptance of Letter of Intent (LOI)

10.4 Issue of Purchase / Work Order

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10.5 Execution of Agreement/Contract

10.6 Purchase Order / Work Order follow-up

10.7 Submission of Performance Bank Guarantee

10.8 Opening of Letter of Credit

10.9 CPM/GANTT/Bar Chart for the work

10.10 Civil and Electrical Work requirement

10.11 Project Leader / Project Manager / Project

coordinator details

10.12 Delivery Schedule

10.13 Yardstick of posting Project-in-charge will be done

along with Sub-station work as under

11 SPARES PROCUREMENT 64-68

11.1 Introduction

11.2 Consolidation of spares requirement and Technical

Sanction

11.3 Procurement through OEM

11.4 Financial Negotiations

11.5 Spares procurement from open market

11.6 Hardware Repair / Software Maintenance Contract

(HRSMC) or AMC

11.7 Negotiation of Contract and finalization of contract

12 RATIONALE FOR WPC LICENSING OF RADIO FREQUENCY 69-71

& IMPORT LICENCE

12.1 Background

12.2 Types of WPC clearances/licenses specifically

required by AAI for the use of CNS networks

12.3 DGFT Licence

12.4 Conclusion

13 PROJECT EXECUTION MANAGEMENT 72-81

13.1 Introduction

13.2 Formation of Project Execution Team

13.3 Project Kick off meeting

13.4 Project Execution

13.5 Site visits and inspections

13.6 Factory acceptance test (FAT)

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13.7 Loss of items during dispatch or items found

damaged at the time of receipt

13.8 Verification of Documents

13.9 Receipt of the items

13.10 Extra, Substituted & Deviated Item

13.11 Extension of Time with levy or without levy

13.12 Site Inspection by Senior Executives

13.13 Procedure for Monitoring Performance Bank

Guarantee

14 ACCEPTANCE, COMMISSIONING AND POST 82-86

IMPLEMENTATION AUDITS

14.1 Introduction

14.2 Site Acceptance Test

14.3 System stability and reliability test

14.4 Safety assessment test

14.5 Commissioning of the system

14.6 Work Completion

14.7 Capitalization of Assets

14.8 Inventory Record

14.9 Post Implementation Audit

14.10 Record up-keeping

14.11 Performance Evaluation of Contractor

15 PROCUREMENT AT RHQ/FIELD STATIONS 87-90

15.1 Introduction

15.2 Budgeting

15.3 Cost Estimate

15.4 In principle approval & Technical sanction

15.5 Tender process/Quotation process

15.6 Monitoring of Contract

16 APPLICATION AND REVIEW OF THE CNS WORKS MANUAL 91

16.1 Introduction

16.2 Application

16.3 Review

16.4 Viability

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APPENDIX

APPENDIX HEADING

Appendix -1A Mode of Procurement 93-96

Appendix -1B List of CNS equipments, systems and 97

associated support facilities

Appendix -2A Life Span of CNS Equipments 98

Appendix -2B Performa for obtaining In- principle approval 99

for replacing old equipments

Appendix -2C Performa for obtaining In-principle approval 100

for procuring spares

Appendix -2D Performa for obtaining In-principle approval 101

for AMC/Repair support

Appendix -3A Budget Format 102

Appendix -3B Re-Appropriation Order 103-104

Appendix-3B1 Expenditure details against Re-appropriation 105

Appendix -4A AA&ES Format 106

Appendix -5A Technical Sanction Proposal Format 107-108

Appendix -5B NIT / PQN Format 109

Appendix-5B-1 Format for NIT for publishing in the 110

News papers

Appendix -5B-2 Notice Inviting Tender (AAI Website) 111-115

Appendix-5C-1 Format for PQN for publishing in the News papers 116

Appendix -5C-2 Tender Pre-qualification Notice (PQN) 117-122

(AAI Website)

Appendix -5D Sample Tender Document (NIT) 123-194

Appendix-5E Draft Performa for requesting External 195

Implementation Monitoring Officer (EIM) as per

Integrity pact

Page

No. No.

vii

Appendix -6A Sample Eligibility criteria 196-197

Appendix -6B Categories of CNS equipment/system for the 198-199

purpose of pricing schedule

Appendix-6C Sample agreement for High Sea Sales 200-202

Appendix -7A Application for issue of Tender Document 203

Appendix-8A Tender Opening Register Proforma For 204

Envelope-A

Appendix-8B Tender Opening Register Proforma For 205

Envelope-B

Appendix-8C Tender Opening Register Proforma For 206

Envelope-C

Appendix -10A Letter of Intent (LOI) 207

Appendix -10B Performa for Acceptance of Letter of Intent 208

Appendix -10C Draft Agreement with successful bidder 209-210

Appendix -10D Performa letter for Purchase Order 211-221

Appendix-10E Draft Performa for Letter of Credit 222

Appendix -11A Performa for Technical sanction for procuring 223

spares

Appendix -11B Performa for PAB Note 224

Appendix -11C Important Terms & Conditions in Repair 225-226

Support Contract

Appendix -12 List of equipments for which DGFT license is 227

required

Appendix -14A DGCA CAR dated 8th Jan 2010 regarding 228-231

commissioning of system

Appendix -14B Evaluation of performance of Contractor’s/ 232

Firms

Appendix-15 Notice Inviting Quotation 233-236

Appendix-16 Important Documents/Approval 237

Airports Authority of India ANS Procurement Manual

1

CHAPTER-1

1.1 Introduction and Scope

1.1.1 Communication Navigation & Surveillance – CNS is the key Directorate of Airports

Authority of India (AAI) and is responsible for planning, procurement, implementation

and maintenance of the systems related to -

1) Communication, Navigation and Surveillance infrastructure required by Air

Traffic Services

2) ATM Automation system

3) Communication Infrastructure

4) Ancillary systems such as UPS, Test Equipment, Master/Slave Clock systems,

Lightning and Surge Protection System etc.

5) Electronic security equipments required for ensuring security of passengers, the

aircrafts and airport infrastructure, HHMD / DFMD, XBIS, CCTV, PIDS

6) Miscellaneous equipments required for disseminating flight related information

and for the purpose of passengers information like PA system, FIDS, etc.

7) Associated support systems and spares of the specified quality, at the most

competitive rates, in a fair, just and transparent manner.

1.2 Objectives of ANS Procurement Manual

1.2.1 The main objectives of procurement by Directorate of ANS are similar to traditional “Five

Rights” (i.e. procurement of goods and services of right quality from right supplier in the

right quantity at a right time and at right price) can be briefly summed up as follows :

1) To procure goods and services of required quantity and specified quality

2) To procure goods and services on competitive basis from eligible sources at right

price

3) To procure stores within required time frame

4) Fair and equitable treatment of all suppliers

1.2.2 The need has been felt to streamline the existing procurement procedures presently

being followed so as to cut down the procurement time in the rapidly changing Aviation

scenario. Keeping in view the present prevailing practices, CVC guidelines, provisions

contained in material management manual etc, efforts are made to consolidate and

modify existing procedures wherever required to bring more transparency and

openness in the procurement process. Besides use of suitable tendering process as per

the financial limits and delegation of powers, fair and equitable treatment of suppliers

shall be the bottom line of procurement process which is kept in mind.

GENERAL


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1.2.3 This ANS Procurement Manual is a guideline and all purchases are to be regulated as per

the procedures laid down therein. However, in some specific cases, it may become

necessary to arrange procurement by adopting methods, not indicated in the manual. In

such cases, specific approval of Chairman, AAI will have to be obtained before initiating

such action, detailing the reasons for such deviation.

1.3 General Explanations

1.3.1 This instrument of ANS procurement Manual which contain procurement and project

monitoring related guidelines for Directorate of ANS-shall come into force from the date

of its approval by the Authority.

1.3.2 All the rules, regulations, instructions and procedures specified in this Manual are

subject to subsequent orders and instructions issued by Airports Authority of India

and should be exercised by the officers within the financial powers delegated from

time to time through the instrument of Delegation of Financial Powers. In the

absence of any guidelines or procedures in the Manual on any subject, the

directions/technical instructions issued by the E.D. (CNS)/Member (ANS) should be

followed.

1.3.3 In case of difference between Delegation of Powers and Manual, the Delegation of

Powers shall prevail over the provision of Manual.

1.3.4 Central Vigilance Commission’s guidelines issued from time to time will come

into effect after the instructions are issued by AAI Corporate Headquarter in this

regard.

1.3.5 In case, any modifications/ alterations or withdrawal of any rules herein are required,

such powers shall be vested with Chairman, AAI.

1.3.6 The constitution of various Boards and the Committees should be as envisaged from

time to time in the Delegation of Powers.

1.3.7 Availability of funds at different stages of the project is also immensely important. For

this a clear understanding of budgeting procedure is needed. ANS Procurement Manual

takes care of this aspect as well. The Manual provides relevant guidance at each stage

right from the conceptualization, obtaining financial & technical approvals, tendering

and award of work to execution of the project. It encloses formats and other documents

for ready reference.

1.4 Mode of Procurement

1.4.1 It is essential to identify the method of procurement at the conceptualization stage of

the project. There are different methods available which shall be applied according to

system, equipment or services to be procured and the circumstances prevailing.


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1.4.2 Open Tender, Limited Tender or Proprietary Purchase or Purchase without call of tenders

etc. could be adopted for the proposed procurement. For the specific mode of execution

or procurement, sufficient justification is to be provided at the time of AA&ES as per the

provisions of D.O.P.

1.4.3 Details regarding different mode of procurement is given in Appendix-1A

1.5 Procurement Process

Normal cycle of activity in procurement process is as follows:

1) Receipt of Indent and In-principle approval

2) Develop clear and complete description and scope of work after assessing

technical requirement and market survey.

3) Decide on mode of procurement.

4) Obtain budgetary quotes from reputed suppliers for preparation of estimate for

obtaining AA&ES.

5) Obtain AA&ES for procurement proposal duly indicating mode of procurement

6) Finalization of Technical specification

7) Determine important commercial requirement, performance criteria, eligibility

criteria etc. to be incorporated in tender document.

8) Bids invitation allowing reasonable time for response from trade.

9) Tender opening in transparent manner in presence of bidders.

10) Evaluate Tenders.

11) Select supplier.

12) Award contract after approval by Competent Authority.

13) Follow up the contract

14) Inspect the equipment / systems at the manufacturer’s premises

15) Release initial payments as per provisions of Tender / Contract.

16) Test the equipment at ultimate consignee’s premises in case of supply only

projects and ensure completion of installation in case of SITC projects and

release balance payment

17) Monitor the performance of equipment / systems during guarantee/warranty

period and follow up with the supplier wherever required


4

18) Procurement of spares at the agreed rates and conditions.

19) Keep track of suppliers’ adherence to various terms & conditions and his

promptness to address AAI’s issues.

20) Finalize and close the contract with contract closure report.

21) Proper Maintenance of all relevant files and related documents with binding of all

relevant records.

1.6 Different projects may have different procurement activities. The above listed activates

are more or less same in most of the procurement process except in case of proprietary

purchases. Proprietary purchases are discussed under Chapter 11 in detail.

1.7 List of equipment, ANS systems & associated support systems which are procured under

the guidelines approved in this manual is placed at Appendix-1B. With advancement of

Technology new systems and equipments will be added after obtaining approval from

Competent Authority i.e. Member (ANS).


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CHAPTER-2

2.1 Indenting

Normally, Indents were generated for the following purposes at CHQ level:

a. For provision of new facilities

b. For replacement of old equipments / systems

c. For expansion/up-gradation/ extension of existing System

d. Induction of new technology

e. Requirement of spares (either from open market or proprietary purchase from

OEM or system integrator)

f. Requirement of Test and Repair facility for setting up or augmenting SMU of

already installed equipment (of particular make & model having considerable

number) such as that for radar, DVOR, DME, VHF sets, ILS etc.

g. Requirement for Hardware/Software repair support contract etc.

h. Requirement for Annual Maintenance Contract (AMC) for ancillary equipment

such as UPS, EPABX, test equipments, telephone handsets, mobiles etc.

i. Requirement of New leased lines, telecommunication or data links etc through

different service providers.

j. Requirement of RC lines, Optical Fiber Cable, UHF links etc.

k. Requirement related trial testing/development activities

2.2 Indents for provision of new facilities

2.2.1 Whenever new facility is required to be installed at existing Airport or at Green field

Airport, Indent for provision of new facilities is placed by Directorate of Air Traffic

Management or by Directorate of CNS-OM to Directorate of CNS-Planning after

obtaining approval of Member (ANS).

2.2.2 In some cases, the requirement for provision of new facilities at a particular airport is

received from aircraft operating agencies, through regulator or to meet international

commitments either directly or through airport concern. Under such cases also, an

approval is required to be taken from Member (ANS).

2.3 Indents for replacement of old equipments / systems

2.3.1 Directorate of CNS-OM monitors the performance of existing equipments / systems and

based on the performance and projected life of these systems, it places indent for

replacement of existing equipment / systems after obtaining approval from Member

(ANS).

INDENTING & IN-PRINCIPLE APPROVAL OF PROJECT


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2.3.2 Life span of different equipments/facilities are indicated in Appendix 2-A

2.3.3 In case obsolensce of technology or non-availability of spares, up-gradation or re-

fabrication of equipments or systems may be required instead of replacing the complete

equipment. This gives benefit of utilization of same manpower, utilization of available

spares and infrastructure.

2.3.4 GM (CNS) shall fill the format as per Appendix 2-B for obtaining In-Principle

approval of Member (ANS). As far as possible past repair history and unserviceability

of the equipment shall be mentioned while obtaining in principle approval. In case of

replacement of old equipments / systems, the process for initiating procurement

should normally start two years before the equipment/system is likely to complete its

useful life indicated in Appendix 2-A.

2.4 Indents for expansion of existing system

2.4.1 There are instances when existing system is required to be expanded or

integrated due to operational requirement. Such cases arise under following

circumstances:-

a) Integration/Networking of Surveillance system /DATIS system

b) Augmentation of VHF coverage through additional VHF Tx/Rx and/or VHF-

RCAG.

c) Remote monitoring of ATS facility/ Navigational facility etc.

d) Creation of remote ATC Tower or Approach centre or Area centre

e) Extension of scope or coverage of existing facility e.g. in case of ASMGCS

system, CCTV and FIDS network, ATC Controller Working Position etc.

2.4.2 The requirement for integration or expansion of existing system may be

projected by user department after obtaining In-Principle approval from

Member (ANS). Directorate of ATM should co-ordinate with Directorate of

CNS-OM for technical feasibility of integration/expansion of the existing

equipment /system to meet the operational requirement. Member (ANS) may

assign the responsibility of carrying out such projects either to Directorate of

CNS-Planning or Directorate of CNS-OM.

2.4.3 Provisioning of same make & model of CNS equipment should be given priority as

and when possible, in order to minimize financial burden on manning and

maintaining different repair setups and varied technical training requirements.

This will effectively reduce manpower requirement for manning and maintaining

different make and model of various CNS equipments and also inventory cost for

spares of different make.


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2.5 Indents for induction of new technology

2.5.1 With a view to induct new technology in order to meet international commitments or

advancement of adopted techniques, such requirements may also be conceived by

Directorate of CNS-Planning and got concurred by Member (ANS) and Chairman.

2.5.2 New technology should be proven technology elsewhere. Experience of other ANSPs

and recommendations should be given due weightage while adopting the new

technology.

2.6 Indents for procurement of spares

2.6.1 Spares are needed for maintaining the operational CNS equipments to provide hamper

free operations. CNS In-charge of Airport where spares of CNS facilities are required to

be replenished, shall project the requirement to concerned Regional Office.

2.6.2 Regional Headquarters shall also take the input from stations under their control where

same facility is under operation to consolidate the requirement of the region for the

same facility. Such consolidated requirement shall be forwarded to Directorate of CNS-

OM for procurement action.

2.6.3 Detail procedure is outlined in chapter-11 for procuring spares either from OEM or from

open market. Proforma given in Appendix 2- C shall be filled in while requesting in-

principle approval for procuring spares.

2.7 Indent for Hardware Repair Support and Software Maintenance Contract /

Annual Maintenance Contract

2.7.1 Generally, all the CNS equipments are maintained with the help of In-house

infrastructure repair support available in AAI. Central Maintenance Cell (CMC) and

Specialized Maintenance Units (SMUs) are providing expert services to field stations in

case of prolonged breakdown of equipment/facilities and repair support of facilities for

which Repair & Test facilities and test Jigs are procured by AAI.

2.7.2 In some cases, where it is not economical to procure Test benches for repairing

unserviceable modules due to less number of equipments in use in AAI, a hardware

repair support is needed from OEM or system integrator.

2.7.3 Due to non-availability of Software design or source code details competency in some

new generation equipments, software maintenance support is also required from OEM

or System Integrator for short periods. However efforts shall be made to create

in-house expertise for long term economic and prompt services.

2.7.4 Stations requiring Hardware repair or Software maintenance support for new

generation of equipments shall project their requirement to Directorate of CNS-OM at

CHQ.


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2.7.5 Directorate of CNS-OM shall create SMUs for such facilities or arrange training to

upgrade CNS Manpower so that dependencies on foreign collaborators shall be reduced

to bare minimum.

2.7.6 In case, the requirement for Hardware Repair Support and Software Maintenance

Contract is essential, Directorate of CNS-OM shall prepare a case for obtaining In-

principle approval from Member (ANS) as per format at Appendix 2-D.

2.7.7 In case of ancillary equipment such as UPS, EPABX, Test equipments, Telephone Sets,

Mobile handsets, Security equipment, PA Systems, CCTV etc., Annual Maintenance

Contract may be entered into with the respective local manufacturers/ service

providers. For such equipments, Annual Maintenance Contract may be awarded in the

tendering stage itself for obtaining competitive pricing.

2.8 In principle approval

2.8.1 In-principal approval from Member (ANS) shall be obtained for the cases covered under

para 2.1.

2.8.2 There may be some other cases which are not covered under para 2.1 like

procurement of associated test equipments or consoles or furniture or specialized

training or up gradation of facility etc. In-principle approval is also required to be

obtained under such cases from Member (ANS) before the procurement action is

initiated.

2.8.3 Member (ANS) is the Competent Authority for procuring spares at CHQ/CRSD

level. However, for small value purchases for spares and components, DOP

Chapter-9.0 shall be referred for obtaining In-principle approval. Authority

defined in DOP under Para-9.2 of Chapter-9 for awarding sanction and award of

work shall be considered for accord of Technical Sanction / In-principle Approval

for procuring CNS spares.


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CHAPTER-3

3.1 Introduction

Availability of funds has to be ensured at each stage of planning for accomplishing CNS

projects and procuring goods and services. This is achieved by orderly projecting

schemes and earmarking funds. Budget performance directly relates to the degree of

vision, and concern for the schemes.

3.2 Budgeting Process

3.2.1 Budgeting process begins as early as in the month of April when all the designated

units of AAI should start conceptualizing the schemes for taking up in the next

financial year, side by side reviewing the projections for the current year for any

revision that might be necessary as weighed against the project execution

performance.

3.2.2 Both Budget estimates (BE) for the next financial year and the Revised Estimates (RE)

for the current year need to be pursued seriously.

3.2.3 BE and RE requirement of the field must be forwarded with full justification to the

Regional Headquarters by the field stations by the date specified in the AAI budgeting

procedure circulated by the department of Finance and as included in the CNS Planning

budgeting policy.

3.2.4 Regional Headquarters should then forward the compiled fund requirements to the

Directorate of CNS Planning ( Projects falls under Capital budget) and Directorate of

CNS-OM ( Projects falls under Revenue budget) with full justification. CHQ will

further project the necessary budget requirement of the field station along with the

budget requirements assessed at CHQ level. All the works listed for budget

projections should form part of the schemes identified by Directorate of CNS

Planning/O&M in the Capital or Revenue Budget circulated by the Department of

Finance to all.

3.2.5 Requirement for funds under Revenue budget shall be projected by GM(CNS)

Region/Metro Airport for award of service/work contracts and the requirement

of spares/LRU which may be required for maintenance of various CNS/ATM

facilities, security and passenger facilities etc.. Revenue budget is compiled by

the Regional finance directorate for onward submission to CHQ for allotment of

fund under revenue budget in the BE of next FY and RE of the current financial

year. This process needs to be done in a very careful manner so that all the

requirements are covered and met to avoid re-appropriation of the fund.

BUDGETING


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3.2.6 GM (CRSD) shall also project fund requirement for the schemes being forwarded by ED

(CNS-OM) for execution. However, GM (Com), GM (N&S) & GM (CRSD) will closely

co-ordinate for the budget projection for the schemes under consideration.

3.2.7 Normally, GM (CRSD) receive indent after obtaining In-principle approval from CHQ. and

projection of funds for such schemes shall be done by GM (N&S)/GM (Com)-CHQ.

3.2.8 Funds for the press advertisement shall be added under contingency expenditure which

is normally 3 % of fund required for any scheme. Sometimes for the low value purchases

of spares 3 % of estimated cost is not sufficient for meeting advertisement expenditure

by GM (CRSD) / GM (Region/Officer-In-Charge, field station. For such cases, GM (CRSD)

/GM (Region/Officer-In-Charge, field station shall project the fund requirement for

press advertisement based on average expenditure made in the last three year towards

publication of NIT in newspaper or based on the projected/estimated schemes to be

executed in the current financial year.

3.3 Custodian for CNS Budget

3.3.1 Executive Director (CNS-Planning) will act as the custodian for the complete funds

under Capital head for all infrastructure requirements for CNS/ATM equipment.

CNS–Planning directorate will process all projections for the budget, and allocations

of the approved funds under the scheme falls under capital head. Executive Director

(CNS-OM) will act as a custodian of complete revenue budget for all operational

requirements for the maintenance and up-gradation of CNS infrastructure. CNS-

Directorate at CHQ, wherever required, will also process re-appropriation of funds.

However, GM-CNS at RHQ may indicate the planning and expenditure on CNS/ATM

equipment under capital head or revenue head. GM (CNS-Region) compile the whole

region requirement and forward to CNS-Planning/CNS-OM at CHQ for information

and compilation purposes. The fund allocation to stations will be done by CNS

directorate of CHQ for scheme for which In-principle approval is available. The

consolidated fund allocation will be communicated to GM CNS at Regional HQ for

distribution to the stations in the Region including Regional HQ.

3.4 Identification and Justification of the scheme

3.4.1 All the schemes should be identified for implementation in the next financial year

conforming to the projected requirement of various CNS/ATM equipment / systems,

Security equipment keeping relevance to appropriate category and action plan for the

activity. Complete justification should be recorded with all necessary implementation

details for the schemes identified.

3.4.2 Schemes can be defined Long, Medium and Short Term Scheme.

Long Term Scheme : Any scheme which requires completion time of two to three

years falls under this category. Under such schemes funds may be identified well in

advance under BE / RE by properly indicating utilization of funds year-wise.


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Medium Term Scheme : Any scheme which requires completion time of more than

one year but less than two years falls under this category. Under such schemes funds

may be identified under BE/RE by properly indicating commitment payments in next

financial years.

Short Term Scheme : Any Scheme which requires completion time of one or less than

one year falls under this category. Under such schemes funds may be identified well in

advance under BE/RE by properly indicating utilization of fund.

3.4.3 Revenue Expenditure Budget: It finds place in the funds for the works of revenue

expenditure in nature to be done during the year.

3.4.4 Capital Expenditure Budget : It organizes in three schemes:-

A-1 Scheme: which are likely to complete during the same financial year.

A-2 Scheme: Critical on-going scheme during the financial year.

A-3 Scheme: It contains new scheme.

3.5 Budget Formats

3.5.1 Budget requirements should be forwarded in the formats specified by the department of

finance and enclosed as Appendix 3-A.

3.6 Expenditure Budget

3.6.1 Budget projections should be clearly earmarked distinctly for projection in the

Expenditure budget. Expenditure Budget projections are for the estimated expenditure,

against the total project cost committed in AA&ES, in a financial year. Under some long

terms contract, committed payments are to be made on monthly/quarterly basis which

shall be properly reflected under BE/RE for fund allocation purpose.

3.7 Budget Control and Monitoring

3.7.1 Budget projections should be monitored for its effective control. Budget performance

has to be periodically communicated to the CHQ by GM (CNS-Region) as per the

procedure available in the CNS Planning Budgeting Policy. CNS-Planning/OM shall

monitor the budget performance regularly as a part of the monitoring of CNS/ATM

projects as well as procurements. For the projects of high importance, Project

Monitoring Tools shall be utilized.

3.8 Appropriations and Re-appropriation

3.8.1 Appropriation means assignment of funds to meet specified expenditure. Re-

appropriation means the transfer of funds from one unit of appropriation to another

such unit. No expenditure on a work should be incurred without funds having been

allotted for it by appropriation or re-appropriation.


12

3.8.2 In exceptional and emergent cases, Member (ANS) can authorize expenditure on works

in anticipation of the allotment of funds or in excess of the funds allotted for the

purpose, but such authorization must be regularized subsequently by a formal

allotment of funds to the extent required as per provision of DOP. These funds so

allocated should be projected in RE/BE.

3.8.3 Re-appropriation of funds should be obtained from the Competent Authority whenever

the budget provisions in the scheme fall short. Re-appropriations should be taken up as

per the procedure in the Budgeting policy and to be included in RE.

3.8.4 Allotment of funds either through approved budget or by re-appropriation is meant to

cover all the charges of current financial year including the liabilities of the past years to

be paid during the current year. It is operative until the close of the financial year. Any

unspent balance of allotted fund at the end of this financial year lapses and is not

available for utilization in the following year.

3.8.5 An appropriation or re-appropriation can be authorized at any time before, but not after

the expiry of the financial year. The re-appropriation of funds and its utilization shall be

monitored for which format in Appendix 3-B are to be utilized.


13

CHAPTER-4

4.1 Introduction

4.1.1 Directorate of CNS will normally take up the procurement of CNS systems and its

associated support systems against the indents projected as defined in Chapter 2. It is

to be ensured that In-Principle approvals are available before obtaining AA&ES. Cost

estimate is the first step for the purpose of AA&ES.

4.1.2 Brief Technical specification of the system/Equipment/ Support system needs to be

identified based on the relevant SARPs based on ICAO Annexure and Docs, DGCA CAR,

Specification of other ANSPs for similar systems and from market survey through

Internet or Technical presentations by leading suppliers.

4.1.3 It is also required to add requirement of system configuration in terms of System

capacity and size, redundancy requirement, requirement of specialized Test equipment

/bench, if any, future extended warranty support requirement , Training etc as these

parameters are having a cost impact and helps vendor to provide budgetary cost to a

real value.

4.1.4 In case of new projects on emerging technology where detailed back up references /

experience for preparation of estimates are not available, detailed review of technical

aspects from Vendor market may be obtained in complete form by way of vendor

interaction or call of expression of interest from prospective vendors or references to

Internet websites. This exercise is to get the complete input of the projects on market

trends in respect of technical specifications, product availability and costing, etc. Under

special cases, help from consultants or organizations like, ISRO, FAA, ICAO, Air-services

etc. can be obtained.

4.1.5 Detailed project report is required to be prepared for projects costing more than Rs. 30

crores. Services of consultants may be hired on case to case basis after obtaining

specific approval from Competent Authority. DPR shall be concurred by all the associate

agencies involved in the project.

4.2 Sources for Cost Estimate

4.2.1 After assessing and finalizing technical specifications and system configuration for the

CNS projects, goods and services, budgetary costs shall be obtained from following

sources:

4.2.1.1 If the similar System/Equipment was procured in the last three years, then the

estimated cost can be taken from previous purchases provided the equipment

under purchase have almost same specification and configuration in terms of

operational features, capacity & quantity provided there is no significant change in

PROJECT COST ESTIMATES & AA&ES APPROVAL


14

the costs. The estimate shall be suitably modified taking into rate of annual inflation

and also the currency conversion rate to arrive at justified estimate.

4.2.1.2 All efforts shall be made to call budgetary quotes from the reputed Original

Equipment Manufacturers of the systems under consideration for procurement

based on the technical specification of the System/ Equipment/ Support system as

indicated in para 4.1.2 above. It is desirable to obtain at least three budgetary

quotes as far as possible. Officer preparing the estimate shall also explore the

possibility of obtaining Market cost through Internet or any other available sources.

Market situation shall be accessed in a comprehensive and realistic manner.

4.2.2 In case, AAI decides to buy equipments based on new Technology for which sufficient

Technical knowhow is not available, route of Expression of Interest shall be followed for

obtaining cost estimates for the purpose of AA&ES.

4.2.3 Sometimes the equipment has not been procured in near past and estimate cost is

also not available from the open market due to obsolence but equipment is

operational at Airports. Under such cases the estimated cost from the past

experience of purchases shall be considered as justified after making adjustments

for inflation and conversion rate of foreign exchange. However, officer processing the

case shall bring out the efforts made in obtaining the estimated cost through market/

Internet/reputed suppliers.

4.3 Preparation of Cost Estimate

4.3.1 Once the Budgetary cost is obtained from different sources, it is required to

prepare cost estimate by taking the average cost quoted by bidders. Care should

be taken while preparing cost estimate that there should not be a vast difference

in the prices provided by different vendors. In such cases, very high quote or low

quote may be neglected to bring the estimated cost to a realistic value. Matter

may be properly justified before putting-up the proposal for AA&ES by the officer

preparing the cost estimate.

4.4 Administrative approval and Expenditure Sanction

4.4.1 Formal acceptance of the proposal of a work/project by the Competent

Authority is termed as “Administrative Approval”. Financial concurrence of the

cost of the project proposal by the Competent Authority is termed as

“Expenditure Sanction”. Administrative Approval and Expenditure Sanction

(A/A & E/S) should be accorded simultaneously by the Competent Authority as

per DOP after concurrence of finance. It is required to indicate availability of

funds for the scheme.


15

4.5 Preparation of Estimated Expenditure:

4.5.1 Financial implication should consist of all components of the scheme which needs

to be provided. Provision for contingency expenses is also required to be included,

as a percentage. While preparing for AA&ES, following should be included in the

AA&ES cost

a) Estimated cost of equipment is required to be separated for Hardware, Software

& Services. For Equipment with embedded software such as DVOR, DME, ILS,

NDB, VHF & HF Tx/Rx, Tape-recorders, EPABX, PA System, all security

equipments, cost has to be ascertained as composite system with no separate

cost for software

b) Cost of specialized Test zig/bench requirement, if any, future extended warranty

support requirement , training, spare requirement, as these parameters are

having a cost impact and helps to prepare estimated cost to a near value.

c) All applicable taxes & duties (customs duties, excise duties, service tax, sales

tax, VAT etc.)

d) Freight & Insurance Charges (Typically 3% of the estimated equipment cost until

unless specifically mentioned in the budgetary quote.)

e) Estimated Cost of Civil & Electrical Works

f) Estimated cost of UPS of appropriate rating/reliable power supply with surge

protection

g) AMC cost for five years may also be added on case to case basis.

h) Contingency expenses (Typically 3% on the cost of estimate. Contingency

provision are meant to meet the expenses of press advertisements, press tender

notices, minor works arising due to site conditions and contingent to main work

for its completion. This provision shall also be utilized to meet expenses in

project work like providing furniture for field offices/work places, project

stationery, photocopiers, computers, telephones, cell phones, printing/typing

charges etc. engaging temporary workers/manpower for project jobs and

vehicle purchase or hire charges etc. Procurement of items such as telephone,

cell phone, computer, Photocopier etc. should be governed by the policy of AAI

and approval of Competent Authority, accordingly.

4.6 Power to accord Administrative Approval and Expenditure Sanction

4.6.1 Power for issue of A/A & E/S by various authorities of AAI is as per the Delegation of

Powers of AAI issued vide Inter-Office Memorandum No. SEC:1.1.121 Dated: 18th July

2008 and including amendment issued from time to time.


16

4.7 Permissible Excess over A/A & E/S

4.7.1 If the actual expenditure on a project or scheme, other than statutory increases does

not exceed more than 10% of the amount originally sanctioned, then there is no need

for revised A/A & E/S. In case, it exceeds this limit, revised A/A & E/S should be obtained

from the Competent Authority as per the power delegated in the Delegation of Power.

The excess expenditure over and above the budget provision amount will have to be

met by re-appropriation with the approval of Competent Authority as per DOP.

4.7.2 Any change in scope of work shall also require revised AA&ES from the Competent

Authority.

4.8 Other Content

4.8.1 Before submitting the proposal for obtaining AA&ES, some additional information shall

be compiled as described below :-

a) Background of requirement : Estimate document should bring out clearly the

background of the proposal, which should summarily explain the existing

scenario and the reasons for taking the proposal.

b) Justification of requirement : The expected usage and advantages of the CNS

equipment or facility proposed should be brought out in the AA&ES proposal.

c) Scope of proposed work : All heads and sub-heads need to be elaborated for

clear understanding of the project. An explicit statement as to what work is and

is not covered by the estimate, also a reference to what arrangement are being

made for any portions which are not included in the estimate.

d) Method of Execution or Procurement i.e. open tender, global tender etc

e) Availability of land : Site availability should be indicated in the proposal. If not

available, then prospects for acquiring land and its estimated cost should also be

part of AA&ES.

f) Budget Provision : Budget provisions and scheme under which the purchase is

proposed. Budget details should also be attached to show the funds already

committed and funds available.

g) D.O.P. Provision : Detail of the authority competent to accord AA & ES with full

reference to the relevant D.O.P clauses.

h) Enclosures for the supporting documents

i) Whether the equipment falls under restricted category and will require DGFT

import license.

j) Whether any sort of frequency authorization is required from WPC. In case of

import, whether WPC import license is required.


17

k) Whether proposal is required to be reviewed by Expenditure Review Committee

as per guidelines issued by AAI.

4.9 Issue of AA & ES

4.9.1 Once the Competent Authority, as per D.O.P. accords the Administrative Approval and

Expenditure Sanction, a formal order has to be issued in format available at Appendix 4-

A.

4.9.2 Proposals forwarded to F&A for concurrence may contain the details :-

1. Indents from the airports

2. Justification /benefits of the proposed expenditure

3. Budget provision

4. Availability of site station wise

5. In principle approval of the Competent Authority

6. Budgetary quotes

7. Statutory requirements, if any.

8. In case of replacement of the existing assets, survey reports, duly approved by

the Competent Authority

9. If the proposal pertains to SAU / RHQ but exceeding the Power Delegated, the

view / recommendations of the Local / Regional Finance Head.

10. Status of NOC process/DGFT clearance /WPC license

4.10 Survey Reporting Requirement

4.10.1 Approval of Competent Authority for survey reporting of equipment in case the AA/ES is

for replacement of equipment.


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CHAPTER-5

5.1 Introduction

5.1.1 After the AA & ES is accorded by the Competent Authority, then it is the duty of the

project officer to proceed further with the purchase process. Next step is to seek

Technical Sanction for the scheme as a whole or the work can be subdivided into sub-

works depending on the nature of work and specialization. For each sub-work separate

TS can be accorded and processed separately for further necessary action. This Chapter

is devoted to Technical Sanction and approval to issue Notice Inviting Tender (NIT) or

Pre-qualification Notice (PQN).

5.2 Technical Specifications and System configuration

5.2.1 Based on the Technical Specifications projected in the estimate document against which

AA & ES has been accorded, final Technical Specification are to be finalized. This

requires a greater technical attention to the scheme, and to take care of any

technological up-gradation that might have taken place during the processing time for

AA & ES. Detailed technical specifications of equipment/systems to be procured are

required to be firmed up after assessing technical requirement and market survey.

Efforts are made at this stage to adopt standard specifications from ICAO documents. It

is essential to broad-base the specifications for competitive bidding but not at the cost

of quality of product so that it does not mirror a particular brand. The idea is to ensure

adequate competition to secure best price for quality products, lower prices and wide

choice for source selection.

5.2.2 At times, it may be required to take the help of the manufacturers in giving finishing

touches to the specifications. This is done through inviting technical solutions/proposals

to our requirements. If required, Pre-bid conference can also be called. The minutes of

the pre-bid meeting are to be circulated amongst the all participating manufacturers or

their authorized representatives / agents.

5.2.3 It is essential to identify Training requirement, future repair support requirement,

extended warranty support, if any

5.2.4 These specifications and System configuration are to be got approved by the

Competent Authority as specified in Delegation of Powers (DOP).

5.2.5 The Authority Competent to approve the technical specifications as per DOP will also be

Competent Authority to constitute the committee for firming up the technical

specifications.

5.2.6 The representative from Directorate of CNS on the said committee shall also be the

Coordinator of the committee. He shall be responsible for providing the said committee

all the documents required by it for making the said specifications.

TECHNICAL SANCTION (TS) & NOTICE INVITING TENDER (NIT) APPROVAL


19

5.2.7 The said committee shall endeavor to complete the assigned task within given time

frame.

5.2.8 The Member Secretary of the committee shall put up the technical specifications and

configuration of the system like redundancy requirement, monitoring system, remote

sub-system, if any, capacity of system in terms of processing and capacity and size etc

to the Competent Authority for approval and shall communicate the approved technical

specifications to the nominated project In-charge .

5.2.9 However, Directorate of CNS must ensure that scope of work does not change as

included in AA & ES. Otherwise a revised AA & ES should be taken. At TS stage,

however, some items may need to be dropped which might not be required due to

changes in technology or due to completion of any other similar work.

5.2.10 This is to avoid purchase of redundant or unwanted items. As far as possible, it is

required to obtain the NOC for the site where CNS equipment is required to be

installed or otherwise process to obtain NOC shall start at the time of putting up the

case for TS.

5.3 Technical Sanction (TS) i.e. Approval for Technical Specification

5.3.1 Format at Appendix 5-A should be adopted for seeking Technical Sanction from

Competent Authority as per the D.O.P. Like AA & ES document, it also needs

description on different activities. Each activity when elaborated, as per the

requirement of the scheme, shall record the technical aspect of the scheme in detail

for any future reference. As stated earlier, AA & ES can be split into sub-works, with

each sub-work processed for separate TS. Combined TS can also be taken and then

work is divided into sub-works for tendering, etc. TS document also discusses the

method of execution, eg. Open Tendering, Limited Tendering etc. Procurement on

Proprietary item basis or without call of tenders, the method of execution proposed

for other than open tendering needs to be justified in line with the general guidelines

of D.O.P.

5.3.2 AA&ES is obtained based on the general Technical specification but TS is obtained based

on the final Technical specification validated by a committee or by a nominated officer

based on the latest Technology available in the market. For CNS equipments,

Technology up-gradation is very fast.

5.4 Notice Inviting Tender (NIT) / Pre-qualification Notice (PQN)

5.4.1 After Technical Sanction is obtained, tendering process has to start. At this stage

approval for issue of Notice Inviting Tender (NIT) or Pre-qualification Notice (PQN) as

the case may be, by the Competent Authority shall be obtained as per the method of

execution of the scheme stated in the AA & ES and TS documents. As a routine,

NIT/PQN is issued for Open tendering process. Only in exceptional circumstances or


20

when Tender cost is low, call of quotations can be resorted to by following relevant

D.O.P clause. For calling quotations D.O.P provision under “Without Call of Tenders” has

to be adopted after recording full justification. The process of NIT/PQN is therefore, not

adopted in case of limited tendering process or NIQ.

5.4.2 Open tender can be processed following single step or two step process.

5.4.3 Under single step process, NIT is published in newspaper as well as up-loaded in

website as indicated in format indicated in Appendix5-B-1 & B-2 (NIT for Press

& website) Complete Tender document having details on eligibility requirement as

well as Technical requirement is also up-loaded simultaneously. Format of Tender

document is indicated in Appendix 5-D which can be modified depending upon the

approved terms and condition.

5.4.4 Under two step process, Pre-Qualification notice (PQN) is published in news

paper as well as up-loaded in AAI web site as a first step.(Appendix C-1 &

C-2) Bidders are invited to submit documents related to their financial

turnover, experience, performance certificate etc as described in terms and

conditions of PQN. Based on the evaluation of submitted documents by

different bidders, eligible suppliers are short listed. Sometimes EMD can

also be demanded along with PQN documents to identify serious bidders. In

case of Supply Installation Testing and Commissioning (SITC) Tender,

Bidders shall be allowed to visit site to have better idea of the site. Normally,

pre-bid meeting is conducted at least five days prior to submission of bids.

Pre-bid meetings are organized to exchange information on project between

suppliers and AAI. In such meeting all the shortlisted supplier shall be called

simultaneously and minutes of the meeting shall be recorded and circulated

among all participants.

5.4.5 As a second step, Tender documents are issued to shortlisted suppliers. Such

documents are also posted on AAI web site. Format of such Tender document is almost

same as indicated in Appendix-5D except the terms and conditions for Pre

qualification eligibility will not be part of Tender as the same will be covered under PQN

stage.

5.5 NIT/PQN Terms and Conditions

5.5.1 Tender approving authority shall approve NIT/PQN/Tender document before sending it

to public relation directorate for publishing in press and up-loading in AAI web site by

CNS Directorate. Notice in News Papers should be very precise giving limited details as

per format at Appendix 5 – B-1 & 5 C-1. If approved, estimated cost can also be

given in NIT.

5.5.2 NIT specifies various dates regarding sale and submission of Tenders besides

specifying qualifications for the prospective bidders. It also has an application format


21

for the issue of Tender which can be downloaded from the Website. NIT for Website

also forms a part of Tender Document. All Tenders must be issued as per the terms

and conditions of the NIT/PQN. Depending upon the type of work, different eligibility

criteria can be fixed for participation in the Tender.

5.6 Tender Document

5.6.1 Tender document is prepared based on approval obtained for TS and NIT. It has sections

and schedules, which need to be drafted with utmost care as success of the whole

project depends on it. The Tender document shall be carefully prepared, vetted and got

approved from the T.S authority before it is ready for sale to vendors. Tender Format is

attached as Appendix 5 – D. Minor modification of the tender document format on

case to case basis is called for to relate it to the requirement.

5.6.2 Important tender clauses are explained in Chapter 6. After uploading tender document,

PMQA directorate shall be requested to nominate External Integrity monitor (EIM) for

project covered under integrity Pact. Refer Appendix-5-E.


22

CHAPTER-6

6.1 Introduction

6.1.1 Once the approved NIT is advertised in leading newspaper and AAI web site / e-tender

portal as the case may be, next step is that prospective bidder will collect the Tender

document in person or by downloading the Tender terms and conditions from AAI web

site or follow the E-Tendering route as the case may be. It is therefore necessary that

the terms and conditions of the Tender document shall be clearly defined and approved

by the Competent Authority prior to advertisement of NIT. The purpose of tender and

documents including therewith, serve the objective of furnishing full and complete

information about purchaser’s qualitative and quantitative requirements, price, time

and place of delivery and other important terms and conditions relating to supply &

services.

6.1.2 An unambiguous narration of all the requirements helps the tenderers in submitting

offers meeting all requirements of the tenders. Bid offers received against tender can

be compared based on various terms and conditions which are having bearing on price

and thus be defined carefully.

6.2 Tendering Process

6.2.1 Tender process shall be conducted in the most open and public manner to keep the

process transparent to the bidders.

6.2.2 Tender shall conform to either two bid system or three bid system as the case

may be.

6.2.3 In case of two bid system, Part-I contains EMD, Tender Fees (if applicable) Eligibility

criteria and Technical bid. Part-II shall contain the price bid under sealed cover without

any condition. Two bid system is normally applicable to small Tenders for supplies and

services having standard technical specifications.

6.2.3.1 Three bid system shall have three parts as listed below:

6.2.3.2 Part-I in Envelope A : It shall contain EMD, Tender document fees (in case of

downloaded Tender document), documents in support of eligibility

requirement, as a proof of reading unfilled tender document along with all

corrigendum, if any in original stamped and signed on each page by bidder

and undertaking of non stipulation of any conditions along with undertaking

towards unconditional acceptance of terms & conditions of tender.

(Prescribed Performa attached with Annexure V of Appendix 5-D)

6.2.3.3 Part-II, submitted in a separate sealed Envelope B marked "Part-II Technical

Bid" will contain the following :

TENDER PROCESS


23

a) The compliance statement for all the sections of tender document i.e General

Information and Guidelines, Terms & Conditions and Operational & Technical

requirement, complete in all respect, duly signed and stamped by the tenderer.

b) Compliance statement for Operational & Technical Requirement should be duly

substantiated by necessary documents in the form of brochure / technical

documentation of the product. The page and Para number of the relevant

documentation submitted, which indicates compliance of the statement or

technical specification, shall be specified in the compliance column, without

which the tender shall not be considered for evaluation and is liable to be

rejected.

c) One set of hard copy and soft copy of manuals and technical documentation

d) A list of deliverables with Make & Model number of equipment and

accessories, as mentioned in price schedule and Comprehensive List of

spares and their quantities, tendered against this bid WITHOUT INDICATING

THE PRICE.

6.2.3.4 Part-III submitted in a separate sealed Envelope C marked "Part-III Price

Bid" will contain:

a. The pricing schedule indicating itemized cost of equipment, accessories

(Make & Model number shall be specified) and services in the given format.

The rates should include patent rights, if any. The list of deliverables offered

in the technical bid shall be fully reflected in the price bid clearly indicating the

Make /Model Number of equipment along with other deliverables like spares,

test equipment, accessories etc being offered. In case of any missing,

discrepancy or vague information on the above, the bid is liable to be

rejected.

b. The Part-III in Envelope C of the tender document is for pricing alone. No

condition, whatsoever, should be stipulated in this part. Everything that the

bidder has to say, regarding tender , other than pricing should be stated only

in Part-II i.e. Technical Bid of the tender. If any conditions are stipulated in the

Part-III – Price Bid of the tender, the tender is liable to be rejected.

c. The rates shall be in whole numbers and shall be entered in figures as well as in

words. For the purpose of the tender, the metric system of units shall be used. In

the event of any discrepancy, the unit price quoted in words will be taken as the

correct basis. The overall total cost of supply will be used for the purpose of price

evaluation (as per Appendix 5D Annexure-1

d. The comprehensive list of spares required to ensure un-interrupted

operation of the facility indicating itemized cost of all the Modules, Line

Replaceable Units (LRUs), Printed Circuit Boards (PCBs), components used in

the assembly of the equipment in the given format .


24

e. Price quoted by bidders in their comprehensive spare list shall be valid, firm and

fix for three years from the date of purchase order. Bidder shall also ensure

availability of spare during the life span of system (Life span of equipments

is indicated in Appendix 2A) .

6.2.4 All the three parts I, II & III mentioned above will be submitted in SEPARATE SEALED

ENVELOPES, appropriately indicating on top the Tender No., Part-I “ELIGIBILITY

REQUIREMENTS”, Part-II "TECHNICAL BID". Part-III "PRICE BID”. These

three envelops should be enclosed in a COMMON SEALED ENVELOPE and should

contain the following inscriptions on the cover.

TENDER FOR : [Name of Project]

TENDER NO. : (CNS-P)-00/0000-00

LAST DATE OF SUBMISSION : [Last Date & Time of

Submission of Tenders]

Tender to be submitted to : Executive Director (CNS-Planning)

AAI, CHQ, First Floor, Rajiv Gandhi Bhawan,

Safdarjung Airport, New Delhi – 110 003

Tender submitted by : Name, Full Address, Telephone,

E- mail, FAX

6.3 Changes/Alterations in Tender Document

6.3.1 Tenders once submitted shall be final and no amendment thereto shall be permitted. A

bidder shall submit only one bid.

6.3.2 All changes, alterations, corrections in the bid shall be signed in full, with date, by the

person(s) signing the bid. Erase and/or overwriting on correcting fluid are not

permissible.

6.3.3 At the time of Technical evaluation of bids, AAI may seek clarifications on technical

details or any other information deemed necessary. AAI may ask bidders to give

technical presentation of their product. Such opportunity shall be given to all the

bidders.

6.3.4 After clarification session, if it become necessary for the bidder to make any change in

their original price bid as listed in their price bid of the tender on account of change in

scope of works as per AAI requirements then such price adjustment/revision shall be

sent in a separate sealed cover duly super-scribed as

“PRICE ADJUSTMENT TO PRICE BID. REVISED PRICE AGAINST TENDER

NO…… AND RELEVENT TO THE TECHNICAL PARTICULARS AS CONTAINED

IN THE LETTER NO…. DATED” Such price adjustment shall be allowed to all bidders.


25

However, such price bid adjustments shall not be allowed to those bidders who on

account of response to technical clarification / the queries raised by AAI bring the

equipment up to the requirements stated in the tender.

6.4 Important Clauses of Tender Documents

Tender document indicating standard tender clauses for CNS equipments is placed at

Appendix 5-D which shall be referred for preparing supply and SITC tenders. However,

some important tender clauses are explained in detail under following paras.

6.4.1 Eligibility criteria : It is an essential parameter of the procurement process. Eligibility

criteria should be selected in such a way that maximum competition is invited but also

the bidders which are serious in executing the proposed procurement or contract should

come forward. Eligibility criteria is normally set to see the financial strength of the

bidder, past experience, performance of previous contracts etc. Pre-qualification criteria

shall be unambiguous and made explicit in the bid documents at the time of inviting

tenders. Detail parameters which form part of Performance evaluation is listed in

Appendix-6A.

6.4.2 In case of induction of new Technology /systems, there may not be sufficient bidders

having past experience with satisfactorily performance certificates for the asked

system/equipment, under such cases eligibility criteria can be diluted with the approval

of Competent Authority i.e. one step higher than the Tender accepting authority.

However, Chairman shall have full power.

6.4.3 Financial turnover : Firm (Bidder) shall have annualized average turnover of at least

(30% of estimated cost either in INR or equivalent financial currency) in any of the last

three financial years, ending 31st March or 31st Dec of previous year as per the practice

prevailing in the country of the firm. As a proof of financial turnover, copy of abidged

Balance Sheet along with Profit and Loss account of the firm (bidder) for last three years

shall be submitted.

6.4.4 Experience : Bidder shall have successfully executed orders of the similar equipment/

system either in terms of value or quantity, in line with any of the following ,in last seven

years:

a) One order of value more than or equivalent to ….. [value 80 % of estimated cost]

b) Two orders each of value more than or equivalent to ….. [value 50 % of estimated

cost]

c) Three orders each of value more than or equivalent to ….. [value 40 % of estimated

cost

d) One order consisting of minimum ….. [quantity 80 % of the systems/equipments

being procured]

e) Two order consisting of minimum ….. [quantity 50 % of the systems/equipments

being procured]


26

f) Three orders consisting of minimum ….. [quantity 40 % of the systems/equipments

being procured]

* the definition of system is hardware and associated software to meet

desired functionality as per scope of work.

6.4.5 Under different circumstances, different requirements can be stipulated in the PQN/

Tender documents with the approval of tender approving authority.

6.4.6 Pre-qualification shall be based entirely upon the capability and resources of

prospective bidders to perform/supply the particular contract/items satisfactorily,

taking into account their (i) experience and past performance (ii) capabilities

with respect to manpower, equipment and manufacturing facilities (iii) Financial

capabilities. The quantity, delivery and value shall be kept in view while fixing the

PQ criteria. No bidder should be denied pre-qualification for reasons unrelated to

its capacity and resources to successfully perform the contract.

6.5 Earnest money deposit

6.5.1 Necessity for Earnest Money: According to the practice adopted by AAI, earnest money

as stipulated in the NIT, is to be paid by each bidder to enable the Authority to ensure

due execution of the work and the acceptance of the terms and conditions of the

contract by the Bidder after it has been awarded to him.

6.5.2 Rates of Earnest Money

6.5.2.1 In respect of Indian Tenders i.e. other than the Global : Each tender must

accompany the earnest money for an amount of equal to 2% of the estimated cost

put to tender for the works costing upto Rs. 25 crores. For the works costing more

than Rs. 25 crores, the amount of earnest money deposit should be Rs. 50 lakhs +

1% of the estimated cost over and above Rs. 25 crores. Tenders not accompanied

by the requisite earnest money will be rejected.

6.5.2.2 In respect of Global Tenders : Each tender must accompany the earnest

money for an amount of equal to 2% of the estimated cost put to for the

works costing upto Rs. 25 crores. For the works costing more than Rs. 25

crores, the amount of earnest money deposit should be Rs. 50 lakhs + 1% of

the estimated cost over and above Rs. 25 crores. “The earnest money should

be in the form of a Demand Draft in favour of Airports Authority of India ………..

payable at ………. In Indian rupees or US Dollar or in the form of EMD Bank

Guarantee (BG) of like amount as per Appendix-5D-Annexure-4 from a

Scheduled Bank (as per RBI Schedule) having office in India. Authorized

representative of foreign bidders can also submit EMD in Indian rupees/US

Dollars on behalf of their Principals Tenders not accompanied by the requisite

earnest money will be rejected.


27

6.5.3 Exemption of Earnest Money : Govt. of India’s Guidelines issued from time to time

relating to exemption of earnest money should be applicable to SSI or PSU and should

be defined in NIT.

6.5.4 Mode of Deposit : The earnest money upto amount of Rs. 1 lakh should be accepted

in form of Demand Draft in favour of Airports Authority of India payable at _________

from Scheduled Bank but not Cooperative / Gramin Bank. If Earnest Money is more than

Rs. 1 lakh, It can be submitted in the form of Bank Guarantee/DD/pay order as per

approved performa issued from Scheduled Bank but not from any Co-operative /

Gramin Bank.

6.5.5 Validity of EMD : EMD Bank guarantee shall be valid for a period of six months from

the notified date of opening of the tender without any condition by the bidder. In case

the tender is not finalized within 150 days of submission of tenders, the validity of EMD

shall be extended for a suitable period. In such cases, the project officer of tender

should initiate for extension of validity of EMD within one week after lapse of 150 days of

submission of tender.

6.5.6 Bidder shall provide the name, designation, address, Fax & Phone number of the bank

issuing BG for confirmation purpose.

6.5.7 Refund of Earnest Money

6.5.7.1 Earnest money deposited by all eligible bidders (except the confirmed lowest

bidder) should be refunded within a week after award of order to successful bidder.

Entry of DD/BG received with tenders as earnest money should be kept in tender

opening register. EMD of the successful bidder will be either adjusted towards

security deposit / PBG or can be refunded after receipt of Performance Bank

Guarantee.

6.5.7.2 AAI shall refund same amount in INR/USD received from bidders towards EMD and

in the same currency with no interest or any other expenses, whatsoever, in any

manner to the bidder or its authorized representative.

6.5.7.3 In the case of tenders involving Pre-qualification, technical bid and price/

commercial bid, EMD of those bidders whose either Pre-qualification or technical

bids were found not suitable and hence rejected by Competent Authority will be

refunded. Refund of EMD to rest of the bidders (except the successful bidder)

should be done after award of work to successful bidder as indicated in para 6.5.7.1

above.

6.5.7.4 The Manager (CNS) to whom duty is assigned to maintain the Tender Register,

should periodically review the tender registers with a view to ensure that the

earnest money is refunded in time.


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6.5.7.5 To avoid delay in refund of earnest money and also to avoid chances of malpractice

as a consequence of such delay, written intimation about rejection of tenders should

always be sent and a note should also be recorded on the office copy of the

acceptance letter that the intimation to the bidders about rejection of tenders has

been sent.

6.5.8 Forfeiture of Earnest money:

6.5.8.1 If any bidder withdraws his Tender within the validity period or makes any

modification in the terms and conditions or there is a breach of the terms of the

invitation to bids, of the Tender which are not acceptable to the AAI then , AAI

reserve the right to forfeit the said E.M.D.

6.6 Price:

This is the most important part of procurement process and needs to be defined

very clearly in the tender document. As per the procedure laid down by the

Govt. of India & as a rule all the contracts for purchase involving import of

material from abroad should be purchased on FOB basis. In case of the import

contracts entered into on terms other than FOB basis, a No-Objection-

Certificate from the Ministry of Surface Transport, Govt. of India is required to

be obtained.

6.6.1 The quoted prices shall be firm and fixed and subject to no escalation whatsoever till the

validity period of the tender.

6.6.2 Prices shall be asked to be quoted upto FOB/High Sea basis & Indian supplies from Ex-

works basis or the supplier shall be asked to quote the prices upto destination/DDU if

approved by tender approving authority. As per decision, suitable clause is required to

be incorporated in the Tender document.

6.6.3 The rates shall be entered in figures as well as in words. For the purpose of the tender,

the metric system of units shall be used. In the event of any discrepancy, the unit price

quoted in words will be taken as the correct basis.

6.6.4 In case of item rate tender, only rates quoted shall be considered. Bidder shall

quote the rates in figures as well as in words (In English language only). The

rates quoted in figures shall be in International numerals and whole numbers.

The amount for each item shall be worked out and the all requisite totals given.

Special care shall be taken to write rates in figures as well as in words, and the

amounts in figures only. The Total Amount shall be written both in figures and

in words.

6.6.5 The rates should include patent rights, if any.


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6.6.6 That if on checks there are differences between the rates given by the contractor in

words and figures or in amount worked out by him, the following procedures should be

followed :

a) When there is a difference between the rates in figures and in words, the rates which

correspond to the amounts worked out by the contractor, should be taken as

correct.

b) When the amount of an item is not worked out by the contractor or it does not

correspond with the rates written either in figures or in words, then the rate quoted

by the contractor in words should be taken as correct.

c) When the rate quoted by the contractor in figures and in words tallies but the

amount is not worked out correctly, the rate quoted by the contractor should be

taken as correct and not the amount.

d) In case of percentage rate tender, the contractors are required to quote their rates

both in amount as well as in the percentage below / above the rates entered in the

schedule. In such cases, in the event of arithmetical error committed in working out

the amount by the contractor, the tendered percentage and not the amount should

be taken into account.

e) If agency fail to quote the rate in word & in figure and amount (both) the same shall

be assume to be included in the total tendered amount.

6.6.7 Hardware cost :

6.6.7.1 Overseas bidder shall indicate the cost of the imported hardware items in foreign

currency or in INR and cost of the item sourced from India supply item shall be in

INR.

6.6.7.2 In case overseas supplier intends to supply some item from India then bidder shall

clearly indicate in his price bid, the name of Indian supplier, cost of the item in INR

along with statutory taxes (Like Sales Tax/VAT/Excise duty etc) . such Payment shall

be made to Indian supplier directly in INR by AAI against the invoice produced by

Indian supplier and endorsed by Principal supplier. Purchase order to the successful

bidder shall clearly indicate the name of the Indian supplier, cost of the items to be

supplied from Indian market with applicable taxes to be paid in INR directly to Indian

supplier. Bidder shall give undertaking that in case the Indian supplier raises any

dispute and financial claim against AAI , the same will be dealt by the principal

supplier at his own risk and cost without any liability OR payment can also be made

to Principal supplier directly but in INR on producing proof towards payment of Sale

Tax / VAT etc. provided bidder fulfills all the requirement of Indian banker for flow of

payment in INR.


30

6.6.7.3 In case, Indian supplier indents to supply items from outside India then Indian

bidder shall import the items in the name of AAI. Indian bidder shall clearly

indicate the cost of imported item, cost of freight and insurance upto an Indian

port, custom duty on such item in INR. Under such case, route of High Sea

Sales shall be followed to avoid double taxation (Refer Appendix-6C for

high sea agreement). AAI shall make the payment towards custom duty in

the form of CDEC under Serve From India Scheme subject to maximum value

quoted by the bidder. Any additional custom duty shall be on account of bidder

and will be adjusted from his Invoice. Bidder will be paid in INR against the

Invoice raised by him enclosing bill of entry (as a proof of payment of custom

duty).

6.6.8 Software cost:

6.6.8.1 CNS equipments or system are classified into different categories for the purpose of

pricing as indicated in APPENDIX-6B. One category of equipments where

software is embedded on the equipments or COTS/Package software is supplied

along with the equipment and in another category, software is separately supplied

by the supplier, specially customized for AAI, on CD form which attracts different

rate of custom duty.

6.6.8.2 Bidders shall indicate the cost of embedded software, COTS / Package software

along with imported items as one item and cost of imported software being

supplied on CD form which is customized for AAI, as another item, in foreign

currency or in INR.

6.6.8.3 Bidders shall indicate the cost of software from Indian sources in INR.

6.6.8.4 In case, overseas bidder intends to supply software from India then they

should indicate name of the Indian supplier. Payment shall be made to Indian

supplier directly in INR by AAI against the invoice produced by Indian supplier

and endorsed by Principal supplier. Purchase order to the successful bidder

shall clearly indicate the name of the Indian supplier. Bidder shall give

undertaking that in case the Indian supplier raises any dispute and financial

claim against AAI , the same will be dealt by the foreign supplier at his own risk

and cost OR payment can also be made to Principal supplier directly but in INR

on production of proof towards payment of Indian Taxes and bidder fulfill all

the requirement of Indian Banker for flow of payment in INR.

6.6.9 Cost of Installation, Testing and commissioning

6.6.9.1 Overseas bidder shall indicate cost of installation, testing and commissioning in

foreign currency or in INR as per Tender requirement.


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6.6.9.2 Overseas bidder shall indicate cost of the installation, testing & commissioning in

INR if the same is being undertaken by the manpower employed by his authorized

agent. Payment shall also be made directly to Indian agent in INR against his

Invoice indicating service Tax number duly endorsed by Principal supplier and AAI

shall obtain the CENVAT benefit towards Service Tax. AAI shall reimburse the

Service Tax on production of Service Tax challan.

6.6.9.3 Overseas Bidder may provide part of the services while carrying out installation,

testing and commissioning through his authorized Indian agent and remaining part

through his own manpower employed from overseas. Bidder shall clearly indicate

the cost component of services provided through his own manpower in foreign

currency or in INR or through his Indian agent in foreign currency or INR separately

as per Tender requirement.

6.6.9.4 Indian Bidder shall indicate the cost of Installation, testing and commissioning in

INR. Service Tax on such services shall be reimbursed to supplier on production of

Service Tax Challan.

6.6.10 Cost of Training

6.6.10.1 Overseas Bidder shall quote cost of training to be imparted at his factory premises

abroad, in major foreign currency or in INR as per Tender requirement.

6.6.10.2 Overseas bidder shall quote cost of training to be imparted in India, in major foreign

currency or in INR as per Tender requirement.

6.6.10.3 Overseas Bidder shall indicate cost of the training in INR if the same is being

imparted by the training faculty employed by his Indian authorized agent. Payment

shall also be made directly to Indian agent in INR against his Invoice indicating

Service Tax number duly endorsed by Principal supplier

6.6.10.4 Indian bidders shall quote the cost of training to be imparted at his factory premises

or at site in INR.

6.6.11 Cost of Freight and Insurance

6.6.11.1 Normally, in case of imported items, freight and insurance is arranged by

GM(CRSD).

6.6.11.2 The bidder (foreign suppliers quoting on FOB basis) must indicate the freight &

insurance charges for shipment of entire supply by Sea from the Port of dispatch to an

Indian Port. Total freight and insurance charges for entire supply must be indicated in

the pricing schedule & will be taken for the purpose of price comparison. Wherever the

supplier does not indicate the freight & insurance charges, a flat rate of 3% of the

quoted FOB price will be added as freight & insurance charges for computing CIF value

for the purpose of ascertaining custom duty and price comparison.


32

6.6.11.3 The overseas bidder quoting on DDU basis must include the freight and insurance

charges for shipment of consignment by sea from the port of dispatch to the Indian

port or by AIR as per Tender requirement.

In addition , his bid shall also include transportation & insurance charges in India up

to the consignee address. The charges for freight and insurance will be paid by AAI

restricted to the maximum quoted value by the bidder.

6.6.11.4 Normally, the overseas vessel freight forwarder will be assigned by AAI as per

guidelines of Ministry of Surface Transport, Government of India. Supplier shall

provide the detail of each consignment like size, gross weight etc for the purpose of

expediting information regarding name of freight forwarder which is required to be

obtained from Shipping Corporation of India, Ministry of Surface Transport and

arranging insurance.

6.6.11.5 However, AAI reserves the right to ask the successful bidder to make arrangement

for transporting the equipment by Sea from the port of dispatch to an Indian Port as

assigned in consignee list, in which case, the freight and insurance charges will be

reimbursed by AAI restricted to the maximum value quoted by the bidder.

6.6.11.6 In case, it is decided to obtain the delivery of items by Air due to urgency then

bidder shall be asked to quote the price of freight and insurance by Air.

6.6.11.7 Indian bidder quoting the price on ex-works basis, shall make arrangements for

transporting the equipment ex-works to the ultimate consignee. The charges for

freight and insurance in INR will be paid by the successful bidder and will be

reimbursed by AAI subject to maximum value quoted by bidder.

6.6.11.8 In case, Successful bidder is responsible for delivering the items upto consignee

Airport, then he shall make his own arrangement for obtaining Road permits/entry

passes for transporting the system to consignee Airport , however , AAI will provide

the requisite documents for obtaining road permits.

6.6.12 Custom duty :

6.6.12.1 AAI will load the custom duty on the imported items under procurement to bring

uniformity in the price bids of different bidders. GM (CNS-P) may also appoint CHA

on annual basis as consultant for ascertaining the rate of custom duty.

6.6.12.2 In case, Overseas supplier is responsible for custom clearance or Indian supplier

intends to supply some item from overseas then the imported material shall be

imported in the name of Airports Authority of India (AAI) to avail benefits of SERVED

FROM INDIA SCHEME and insurance policy shall be in the name of AAI. The

successful bidder shall not make payment to customs authority directly for items

mentioned above, as AAI has Customs duty entitlement certificates issued under


33

the “SERVED FROM INDIA SCHEME” by the Director General of Foreign Policies

under foreign trade policy act 2004-2009. Hence, the contractor is required to make

all documentation for importing in such a way which is acceptable to Customs

Authorities for utilizing the entitlement certificates by AAI. The amount of customs

duty entitlement certificate used/ issued under this scheme shall be deducted from

contractor’s bill.

6.6.12.3 In case, the Custom duty entitlement certificate under the above mentioned

scheme is not accepted for any reason by the Custom Authorities, the Custom

duty shall be paid by the Contractor to the Custom Department directly. In the

event of contractor paying customs duty directly to custom department, the

contractor shall submit the proof of customs duty paid for imported items to AAI

and will be reimbursed by AAI

6.6.12.4 In case, bidder is asked to quote the price on DDU basis and responsible for

custom clearance also, then bidder shall indicate custom duty in his price bid.

Custom duty will be restricted to a value quoted by bidder but paid as per actual

in the form of CDEC under Serve India scheme directly by AAI. Custom duty more

than the quoted value will be adjusted from Invoices submitted for payments.

Successful bidder shall obtain all the relevant documents from AAI seven days in

advance to avoid any hassles at the time getting the consignment custom

cleared. Any demurrage due to delay in getting the consignment custom cleared

shall be on account of supplier

6.6.12.5 Any increase or decrease of custom duty at the time of clearance of consignment

due to reclassification or amendment to custom duty tariff will be on account of AAI.

Additional custom duty charged by Custom Authorities due to non-inclusion of item

for the purpose of custom duty or quoting under wrong head shall be on account of

supplier.

6.6.13 Custom handling and Clearing Charges

6.6.13.1 Normally, custom clearance is the responsibility of the Port consignee. However, in

case successful bidder is responsible for getting the consignment custom cleared

(DDU supplies) then contractor shall indicate the custom handling and clearing

charges and payment shall also be made either to the bidder or its authorized

Indian agent.

6.6.14 Service Tax on services rendered in India

6.6.14.1 Prices shall be quoted by bidders exclusive of service tax.

6.6.14.2 As per CENVAT Credit rules-2004 the service tax paid by AAI for Installation, Testing

& Commissioning of various Capital equipments in India are claimed as 100 %


34

CENVAT credit while discharging AAI’s own service tax liability under the head

“Airport service” and therefore Service Tax will be reimbursed by AAI against proof

of payment in form of Service Tax Challan.

6.6.14.3 In case, any overseas bidders not having Service Tax number in India, is

obtaining the services of Indian agent then bidder is responsible for paying

Service Tax directly to its Indian agent and the same cannot be charged from AAI

or otherwise bidder shall indicate the name of Indian agent with his service Tax

number who will provide the services on behalf of bidder. Bidder shall give

undertaking that in case the Indian Service Provider raises any dispute and

financial claim against AAI , the same will be dealt by the foreign supplier at his

own risk and cost. AAI shall reimburse the service tax against the service tax

challan produced by Indian Agent.

6.6.15 Sale Tax/VAT/Excise Duty

6.6.15.1 Bidder shall indicate the Sales Tax , VAT, Excise Duty etc. in INR and payment shall

also be made in INR either to the bidder or its authorized Indian agent on production

of proof for the same.

6.6.16 Octrai/Entry Tax / Loading/Unloading charges/cost of Factory Acceptance

test (FAT etc :

6.6.16.1 Bidder shall indicate the Octroi / Entry Tax, Loading/Unloading charges and

payment shall also be made either to the bidder or its authorized Indian agent.

6.6.16.2 Bidder shall indicate the cost of Factory acceptance test in their price bid. In case ,

AAI decides to waive-off Factory acceptance test then the cost of FAT will be

deducted from overall cost of contract.”

6.6.17 For the prices on FOB /Ex-works basis following should be followed :

i) The foreign supplier shall bid on FOB basis & Indian Supplier shall bid on Ex-works

basis.

ii) For the Indian supplies on Ex-works basis, all the applicable duties & taxes should be

clearly stated. The rates applicable for statutory levies such as, Excise Duty, Sales

Tax etc. must be indicated.

iii) For supplies on FOB basis all Govt. duties leviable in India such as Custom Duty, i/c

CVD/applicable cess etc.@ ….% shall be loaded on applicable amount (CIF amount

+ 1% of CIF value as lading charges) to evaluate the financial bids. While issuing

tenders, custom duties rates may be mentioned in the Tender and will be paid

directly by AAI.


35

6.6.18 Prices upto Consignee Airport (DDU Basis):

(i) In case, it is decided by ED (CNS) that bidder shall quote the price upto destination

(DDU basis) for supply of goods or SITC contract so that AAI can evaluate the

financial impact of project in total that means bidder shall arrange custom

clearance, freight and insurance upto Indian Port through AAI nominated vessel

carrier or by Air, transportation charges within India upto consignee Airport,

loading/unloading, payment of Custom Duty / Octroi /entry tax, obtaining road

permits etc then bidder shall fill the financial bid accordingly to ascertain net cost to

AAI as per the instructions indicated in Tender . However, the custom duty shall be

paid by AAI under Serve from India Scheme.

(ii) Price quoted in the Price-bid shall be inclusive of cost of equipment (Hardware,

software, Training, installation , testing etc) all taxes and duties applicable in

country of origin and in India. All the overseas taxes, overseas freight & insurance,

handling charges, inland freight and insurance, all applicable inland taxes in India

such as all components of custom duty, Excise duty , Sale Tax, VAT, Octroi , Entry tax,

work contract Tax, labor cess, custom clearance charges, etc shall be included.

6.6.19 In case of Public Sector Undertakings (Govt. of India) and SSI, registered with NSIC

under single point registration scheme entitled for purchase preference facilities

under the existing policy of Govt. of India, necessary price break-up indicating

clearly the value added content of the manufacturer must be indicated in the pricing

schedule.

6.6.20 Cost Break Up (Hardware, Software & Services) in Price Bid.

6.6.20.1 CNS equipments or system are classified into two categories for the purpose of

pricing as indicated in APPENDIX-6B There is one category of equipments where

software is embedded on the equipments and in another category software is

separately supplied by the supplier which attracts different custom duty.

6.6.20.2 Cost break-up for supply only tender and SITC tender is having different cost

component elaborated in para 6.6.

6.6.21 Currency of Quote

a. Overseas bidders quoting in foreign currency for the supplies made from overseas,

the price bid shall be in US Dollars / Pound Sterling / Euro/INR or in any major

currency as per tender requirement.

b. As a rule, overseas bidder shall quote in foreign currency for the supplies and

services being provided from overseas and in INR for the supply and services to be

provided from India.


36

c. Foreign bidders quoting in INR for the imported items/services will be paid through

Letter of Credit opened in INR and supplier has to ensure that his overseas Banker

fulfills the requirement of receiving the payment in INR. LC can also be opened in

Foreign currency if requested by supplier equivalent to quoted INR value for

imported items/services. Quoted INR value will be converted into foreign currency

at a conversion rate applicable on the day of opening of LC but payment will be

restricted to quoted Indian value(INR) . Any fluctuation in foreign currency shall be

in account of bidder.

d. Items being supplied by overseas supplier from India shall be quoted in INR

inclusive of all Taxes and payment shall also be made in INR directly to Indian

supplier against his invoice duly endorsed by Principal Supplier or to Principal

supplier directly but in INR on producing proof towards payment of Sale Tax / VAT

etc.

e. Price indicated by overseas bidder in INR for the services rendered in India through

his local agent shall be paid to its local agent in INR against his invoice duly endorsed

by Principal Supplier or to Principal supplier directly but in INR on submission of

proof towards payment of Indian Taxes. However, service tax shall be reimbursed

on production of service tax challan to his Indian agent.

f. Overseas bidder shall quote overseas freight and insurance in foreign currency or in

INR and shall be paid through letter of credit or as per Tender condition.

g. Overseas bidder shall quote inland freight and insurance, custom handling / clearing

charges, octroi , entry tax , loading / unloading charges in INR or in Foreign

Currency and payment shall also be made either to Principal supplier or his

authorized agent.

h. Bid having component of foreign currency shall be converted into INR for the

purpose of evaluation. The rate of foreign exchange (TT selling rate as notified in

the Economics Times on the day of opening of tenders envelop A ) will be taken as

the foreign exchange rate on date of opening of (Envelope A )

6.6.21 Taxes and Duties

6.6.21.1 Bidder shall be liable to pay any and all non-Indian taxes, duties, levies, lawfully

assessed against AAI or bidder in pursuance of the contract. In addition, bidder shall

be responsible for payment of all Indian duties, levies and taxes lawfully assessed

against bidder for both corporate and personal Income and also all other taxes etc.

relevant and applicable in respect of his property. Successful bidder shall arrange

the Tax withholding order within 30 days from the effective date of contract and

before claiming payment otherwise AAI will deduct the applicable tax at source as

per prevailing rules.


37

6.6.21.2 Under the supplies or SITC contract, supplier shall be responsible for paying all

Indian Taxes including income Tax on the team working in India for supervising of

the installation, lawfully assessed against the supplier for both corporate and

personal income. Purchaser shall have right to deduct such Taxes, duties at source,

subject to applicable withholding tax as may be levied by the Government of India.

6.6.21.3 It is essential to indicate in the tender where bids are invited on FOB basis that the

Custom duty i/c CVD/ applicable cess etc. @ ___ % will be loaded on applicable

amount (CIF amount + 1% of landing charges) for the purpose of bid evaluation.

6.6.21.4 For supplies of equipment/items on FOB basis, AAI may prescribe the rate of custom

duty for the items under procurement to bring uniformity in the price bids of

different bidders. GM (CNS-P) may also appoint CHA on annual basis as consultant

for ascertaining the rate of custom duty.

6.6.21.5 In case, terms of contract are DDU basis, for supply or SITC of equipment where

bidder is responsible for custom clearance , bidder shall indicate custom duty in his

price bid. Custom duty will be paid by AAI in form of CDEC under Serve From India

Scheme as per actual subject to maximum value quoted by bidder. Custom duty

more than the quoted value will be adjusted from Invoices submitted for payments.

6.6.21.6 Any increase or decrease of custom duty at the time of clearance of consignment

due to reclassification or amendment to custom duty tariff will be on account of AAI.

Additional custom duty charged by custom authorities due to non-inclusion of item

for the purpose of custom duty or quoting under wrong head shall be on account of

supplier.

6.6.21.7 Bidder shall indicate rate of Statutory Tax, for the purpose of making claim towards

increase and decrease in statutory taxes.

6.6.21.8 In case, bidder has quoted the lump sum towards taxes, without indicating

applicable rate of Statutory Tax on the day of quote, then AAI shall not pay any

claim towards increase in statutory Taxes. Rate of Taxes applicable at the time of

filing financial bid shall be submitted along with Technical bid.

6.6.21.9 Bidder is required to produce Government of India notification towards taxes

prevailing at the time of opening Envelope “A” versus time of supply of the items

while seeking claim towards increase in statutory taxes in India/State of India.

6.6.21.10 In case no extra payment is claimed by the bidder towards increase in statutory taxes,

a certificate/undertaking is required to be given by bidder that statutory tax has not

decreased during the period between date of opening envelope “A” & date of supply

of the items. Any decrease in statutory taxes between the above said period shall

be passed to AAI while claiming payments.


38

6.6.21.11 If supplies are delayed for reasons attributed to the suppliers, the increase rate of

statutory taxes shall be borne by the supplier. However, any benefit accruing due to

decrease in statutory taxes shall be passed on to AAI.

6.6.21.12 In case of SITC projects with delivery terms and condition are DDU, then suppler

shall be responsible for obtaining withholding Tax order from the Tax authorities in

India within 30 days from effective date of contract.

6.7 Payments to suppliers

6.7.1 For Foreign Supplies : (Payment through Letter of Credit.)

Letter of Credit shall be opened upon submission of PBG. In case of foreign supply

of material, AAI shall open LC for the amount equivalent to 100 % of the quoted

value quoted by bidder against supply of imported items and services from

overseas. The LC charges shall be payable by AAI in India and by the bidder

outside India.

a) Foreign bidders quoting in foreign currency for overseas supplies and

services : Foreign bidders are allowed to quote in foreign currency for the

imported items/services. For the purpose of price evaluation, conversion rate

of foreign currency prevailing on the day of opening Envelope “A” will be taken

as a reference to bring all the bidders at par to same currency i.e. INR. AAI

will make the payment in foreign currency as per quoted price by the bidder in

foreign currency for imported items/services subject to any adjustment as per

clauses relating to custom duty, payments etc. However, bidder shall quote in

INR for the supplies to be made from India and AAI shall also pay in INR for

such supplies directly to Indian supplier against his Invoice duly endorsed by

Principal supplier on receipt of items in good condition . Payment to Indian

supplier / service provider on behalf of his Principal supplier shall be construed

as full discharge of AAI obligation to foreign supplier as per agreement.

Principal supplier has to give an undertaking that in case the Indian Supplier

raises any dispute and financial claim against AAI , the same will be dealt by

the foreign supplier at his own risk and cost without any liability to AAI

payment can also be made to Principal supplier directly but in INR on

producing proof towards payment of Sale Tax / VAT etc.. provided bidder fulfills

all the requirement of Indian Banker.

b) Foreign bidders quoting in INR : In case, Foreign bidders quoting in INR, then

LC shall be opened in any major convertible currency or in INR as per request of

bidder.

i) Letter of Credit opened in INR : Supplier has to ensure that overseas banker

fulfills all statutory requirement connected with the flow of payments.


39

ii) Letter of Credit opened in Foreign currency : To calculate equivalent foreign

currency equivalent to INR value quoted by bidder, the currency conversion rate

applicable on the date of opening of LC shall be taken. The total amount payable

shall be firm in Indian rupees as per bid of the contractor. Therefore, any fluctuation

in the exchange rate shall be on the account of Contractor in case prices are quoted

in INR for foreign supplies. However, AAI shall pay in INR for supplies made from

India.

c) Payments

i) 60% of LC amount for supply of imported items & accessories, 100% of Overseas

Freight & Insurance and 100% custom duty (directly to Custom Authorities) against

the submission of following documents in ORIGINAL confirming dispatch of

items.

1. Invoice + 2 copies.

2. Itemized Packing list with cost of each item + 2 copies

3. Bill of Lading or Air Way Bill (whichever is applicable) + 2 copies as proof of

dispatch of equipment/items.

4. Certificate for Country of origin

5. Certificate of Factory Acceptance Test issued by authorized representatives of

AAI, if applicable.

6. Proof of receipt of items at consignee site for supplies made from India in packed

good condition. (In case payment is through LC to Principal supplier in INR)

ii) Balance amount of purchase order price for supply of goods & accessories, 100 % of

local freight & Insurance, Taxes, Installation, commissioning & testing and

Training will be paid on successful completion of following:-

a) Installation,& commissioning

b) Site Acceptance test

c) Successful completion of Training against submission of the following

documents in ORIGINAL:

1. Invoice + 2 copies

2. Certificate of completion of Installation, commissioning & Training issued by

authorized representative of AAI.

*Cost of the Factory Training and site training shall be paid separately on

successful completion of Training as per the Tender condition.


40

Payment shall be released after adjusting any compensation for delay which firm

might have rendered themselves liable as per provisions of contract and applicable

income tax and any applicable deductions as per laws and purchase order.

6.7.2 For Indian Supplier

i) 60% of purchase order price for supply of equipment and accessories supplied

from Indian indigenous source including documentation, 100% of freight and

insurance, taxes and duties against receipt of goods at site in good condition on

submission of the following documents in ORIGINAL.

a) Invoice + 2 copies

b) Itemized Packing list with cost of each item + 2 copies

c) Certificate of Factory Acceptance Test issued by authorized representative of

AAI.

d) Proof of dispatch of equipment / items

e) Certificate of goods received at site in physically good condition.

ii) 40% of purchase order price for supply of equipment & accessories, 100%

Installation (including cabling etc.), commissioning and training charges, upon

successful completion of the above mentioned activities, against submission of the

following documents in ORIGINAL:

a) Certificate of completion of Installation, commissioning and Training, issued by


b) In case of supply only tenders, Certificate of completion of training & testing ,

issued by authorized representative of AAI.

* Cost of the Factory Training and site training shall be paid separately on successful

completion of Training as per the Tender condition.

6.8 Delivery Terms & Schedule

6.8.1 Delivery on FOB / Ex-Works or DDU basis ( Delivery upto the destination) needs to be

clearly defined in the tender . List of consignees is also required to be attached along

with the tender document indicating clearly Address, phone number, e-mail id & Fax

number of consignee.

6.9 Mode of Dispatch

6.9.1 In case the consignment is to be dispatched through Sea , Tender clause shall mention

that goods shall be dispatched through a carrier nominated by AAI as per guidelines

issued by Shipping Corporation of India, Government of India.


41

6.9.2 Normally, the mode of dispatch of items shall remain by sea. In case of urgent delivery

schedule from overseas, a separate sanction is required for transporting goods through

AIR from Member (ANS).

6.9.3 Supplier shall provide the detail of each consignment like size, gross weight etc for the

purpose of expediting information regarding name of freight forwarder which is

required to be obtained from Shipping Corporation of India, Ministry of Surface

Transport and arranging insurance.

6.10 Warranty Terms

6.10.1 The duration of warranty period differs from tender to tender.

6.10.2 In case of supply items, normally warranty starts from the date the items are either

dispatched by supplier or received at the site or after site acceptance of the system. It

may be decided by tender approving authority keeping in view that maximum

competition shall be invited at economical cost.

6.10.3 In case of SITC Contracts normally warranty starts after Site Acceptance Test or

Commissioning of the system. Tender approving authority may approve the suitable

warranty duration depending upon the Project requirement.

6.10.4 Successful bidder shall repair the unserviceable items failed during the warranty period

within turnaround time of 90 days (for foreign suppliers) and 30 days (for Indian

suppliers). Turnaround period is defined as the time period between the unserviceable

item received by the supplier in factory and time when serviceable item is dispatched

from the factory. Any delay in repairing the unserviceable card shall attract LD which

shall be deducted from the performance Bank Guarantee.

6.10.5 LD due to delay in repairing item during warranty shall be calculated as follows:

a) (Average delay in repairing one module) is equal to total number of days of delay,

beyond turn around, in repairing unserviceable items during warranty period

divided by total number of items repaired during warranty period

b) (Value of performance Bank guarantee/300 )

c) (value to be recovered) = a x b

Maximum value of recovery shall not be more than 50% of value of performance

Bank Guarantee towards delay in warranty repair.

d) Remaining 50 % value of Performance Bank guarantee can be recovered towards

non-performance of equipment as per tender condition/scope of the contract. Case

for such recovery shall be initiated at least two months in advance before the expiry

of Performance Bank Guarantee by the Officer-In-Charge of station where


42

equipment/System is installed. Case shall be forwarded to CHQ for recovery action

by clearly indicating the non-performance issue and the response of the supplier of

the equipment/System. Final decision on the matter will be of ED (CNS-P) in case of

new equipment and of ED (CNS-OM) in case of maintenance contracts.

e) Supplier shall issue a repair certificate after every repair of unserviceable item

indicating cause of failure and turn-around time for the purpose of calculating LD

due to delay in repair during warranty.

6.10.6 Same shall be indicated in terms and condition of tender in case of overseas supplies as

well as supplies from Indian suppliers.

6.10.7 AAI shall reserves the right to en-cash complete value of performance Bank guarantee

if the performance of equipment/system is not satisfactorily without assigning any

reason.

6.11 Scope of Work and AAI Responsibility

6.11.1 For SITC (Supply, Installation Testing & Commissioning project) all terms and conditions

should have relevance in respect of testing and installation, AAI responsibility and

Contractor responsibility.

6.11.2 Responsibility of supplying UPS, Power distribution box, power and signal cables,

earthling, lightning arrestor, spike suppressor, cable trays etc. needs to be defined

clearly.

a) In case, AAI is arranging Power supply for the system, then it should be clearly

stated that AAI will provide the UPS supply output only. Supplier has to make

arrangement for installing distribution box with circuit breaker of proper rating at

location near to equipment. Supplier has to lay the power cables along with tray

upto equipment site. Or otherwise AAI will provide the power supply upto

equipment location along with power cable trays, power cables & distribution

boxes.

b) Cable trays for signal cables are to be arranged by contractor or not.

c) Separate earth is required for main system and other sub-system located at a

distance. Earth resistance shall be as per CNS Circular guidelines.

d) For supply of UPS, the requirement shall be as per AAI guidelines circulated by

Directorate of CNS-OM time to time.

6.11.3 For Supply only projects, terms and conditions should have relevance in respect of

necessary Factory acceptance test, training (s) {factory or on-site OJT as the case may

be} to AAI personnel. Release of payments after testing of supplied items, duration of


43

testing, procedure of testing, procedure of obtaining support from supplier for testing

the supplied items, procedure for non-performance of supplied items etc needs to be

defined clearly to avoid any confusion at a later date.

6.11.4 AAI shall arrange the required Import license and WPC clearance etc for the purpose of

custom clearance. ED (CNS-P) may hire the services of consultant for expediting such

jobs.

6.11.5 For SITC contracts , Tender document shall allow bidders to conduct site survey so that

bidders are fully aware of the site condition. Normally, prebid meeting shall be

conducted two days before submission of bids.

6.12 Training Schedule

6.12.1 Duration of Training, content of training, number of trainees per course, training

requirement before installation and commissioning and afterwards, if any, needs to be

elaborated in tender document. Economics of imparting In-country training versus

foreign factory training shall be ascertained depending upon type of equipment. It is not

advisable to conduct training on the newly purchased CNS equipments where hands on

experience is desirable.

6.12.2 ED (CNS) Shall incorporate foreign training clause in tenders only after obtaining

specific approval from the Chairman, AAI.

6.13 Liquidated Damages

6.13.1 In case of delay in completion of the contract, liquidated damages (L.D.) shall be levied

@ 1% of the full value of uncompleted portion of work per week (part of week to be

treated as one week) subject to a maximum of 10% of total contract value. If the

uncompleted work, restricts the operation of complete system then LD shall be

applicable to total value of contract with approval of Competent Authority.

6.13.2 Normally, Contract have following activities:

a. Supply of equipment including software

b. Supply of Spares

c. Installation and testing

d. Training

(i) Factory training

(ii) In-country Training


44

6.13.3 Delay in any stage of work shall invite L.D. according to value of the activity as defined

above at 6.13.1. In case , more number of systems are ordered for different Airport

then LD shall be calculated on per system basis and it shall not be linked with the value

of complete supply.

6.14 Testing Procedure

6.14.1 The procedure of conducting Factory Acceptance Test, Site Acceptance Test and

Reliability test is required to be defined in the tender document.

6.15 Spare Requirements

6.15.1 The comprehensive list of spares required to ensure un-interrupted operation of the

facility indicating itemized cost of all the Modules, Line Replaceable Units (LRUs),

Printed Circuit Boards (PCBs), components used in the assembly of the equipment in the

given format should be provided by bidder along with Technical bid.

6.15.2 Bidders shall submit the prices of comprehensive list of spares along with

financial bid in sealed cover. Prices quoted by bidders in their comprehensive spare

list shall be valid for three years from the date of purchase order. Bidder shall also ensure

availability of spares during the life span of system indicated in Appendix 2A.

6.15.3 In case, AAI decides to obtain the component level repair support from OEM or system

integrator then supplier shall be asked to submit the repair cost of each item for the life

time support for the equipment after warranty. Supplier shall also be asked to submit

the recommended minimum number of spares modules to be maintained in India to

cover the repair turn-around time.

6.16 Validity of Tender Document

6.16.1 The tender must remain valid for minimum of 180 days from the last date of submission

of tender.

6.16.2 In case, the tender is not finalized within 150 days of submission of tenders, the validity

of tender shall be extended for a suitable period. In such cases, the project officer of

tender should initiate for extension of validity of tender and EMD within one week after

lapse of 150 days of submission of tender.


45

CHAPTER-7

Issue of Tender Document and Submission of Bids

7.1 Introduction

7.1.1 Issue and submission of Tenders have to be dealt properly so that chances of the

whole process getting vitiated due to some issue, which might come up later on, are

avoided.

7.1.2 Sufficient time has to be given to vendors to properly frame the bids in response to

the NIT. They should understand the requirement and terms and conditions attached

to it properly otherwise their bids will be difficult to evaluate technically as well as

financially. Recommended time frame is included in this chapter as a part of the

activities associated with the tendering process defined hereunder.

7.2 Publishing of NIT/PQN

7.2.1 NIT/PQN publishing should be as per the standing instructions from AAI from time to

time. However, at present guidelines for publishing Notice Inviting Tender / Pre-

qualification Notice are given below:

7.2.1.1 NIT for works costing upto Rs20 lakhs and supplies costing Rs.10 lakhs :

Press advertisement is not required. Publicity is to be made through display on

office notice boards, to nearby offices, regional HQ and AAI web site . Call of Tenders

can be from approved and valid list of suppliers (who are finalized by wide publicity

through newspaper advertisement and AAI website)

7.2.1.2 NIT for works costing more than Rs 20 lakhs and supplies costing more

than Rs. 10 lakhs : Publicity shall be made through press advertisement. Press

advertisement should be brief. Complete description of main work and sub-head

should be avoided. Only brief description of actual subject work should be indicated.

Press advertisement should mention following:

a) Name of work in brief

b) Estimated cost

c) Last date of receipt of application/Tender

d) For further details refer AAI website www.aai.aero and www.airportsindia.org.in

7.2.2 In case of limited tendering or for tenders below Tender publishing limit, tender on

the website is enough but copy of NIT must be forwarded to all the known vendors as

approved by the Competent Authority approving the NIT for the category of the

tender.

TENDER PROCESS


46

7.2.3 GM(CRSD)/ (RCDU), GM(CNS)-Metro, GM(CNS) – Region shall allocate funds

requirement for press advertisement / publication of NIT in newspaper in the budget as

per the past expenditure towards press advertisement or based on the procurement

projects in pipeline.

7.3 Publicity of Tenders :

7.3.1 Tenders must be invited in the most open and public manner by giving Notice Inviting

Tender through advertisement in press, notice in English/Hindi and the written

language of the State, AAI websites, Trade Associations. Notice boards of Foreign

Embassies & leading foreign newspaper in case of Global tenders, etc

7.3.2 A Tender notice does not amount to an offer or proposal but merely an invitation to the

suppliers for making an offer.

7.3.3 The complete application form should be available on the AAI web site for the purpose of

request for issue of tender.

7.3.4 Charges for the application form downloaded from the AAI website shall be asked from

bidding party by demand draft at the time of submission of bid documents.

7.3.5 Refer Appendix-5B1/B2/C1/C2 for the Performa for NIT/PQN for Press/AAI web site.

7.3.6 Following guidelines are to be followed by the AGM/SM/Mgr./ regarding publicity of

tenders:

7.3.7 Request for release of advertisement shall be sent 3 days in advance so that adequate

time is available for release through Press. As far as possible , publicity shall be made in

at least three leading newspaper.

7.3.8 A watch should be kept on publication of advertisement on publication of advertisement

in-house newspaper where advertisements are being released.

7.3.9 Newspaper cutting in each case should be collected and kept on record as a proof of

publicity achieve as far as possible.

7.3.10 Full details of the dates on which advertisement have actually appeared in newspaper

should be indicated in records.

7.3.11 In case of global tenders publicity shall also be made in leading foreign newspapers and

through foreign embassies.

7.4 Time Limit for Publicity of Tenders

7.4.1 The following time-limits between the date of call for tenders and the date of opening of

the tenders are laid down but this period may be reviewed at the discretion of the Officer

competent to accept the tender. However, any reduction in the time specified should be

effected only in rare cases and the authority ordering reduction will record reasons for

the same.


47

Time period for call of tender may be as below

Activity For Works of Estimated Cost

Up to Rs. 5 crores Above Rs. 5 crores

Last date of receipt of 11 – 15 days 21 – 30 days

application after press

notice

Submission of tenders after 12 – 16 days 22 – 31 days

issue of tenders

7.4.2 The above time limits will not apply to global tenders and in such cases specific decision

should be taken for fixing the period on case to case basis keeping in view the

complexity of scope by ED (CNS).

7.5 Issue of Tender Documents

7.5.1 Issue of Tender documents is governed by the conditions and dates prescribed in the

NIT. Application requesting tender document is required to be duly filled by the

bidder and submitted for issue of tender document. AAI executive responsible for

sale of the Tender document will note his observation, if any, while returning the

application (preserving the original copy in office records) to the bidder while issuing

the tender document. Application format is available with Tender Document Format

at Appendix 7-A.

7.5.2 Normally, tender document should be issued the same day of submission of application

by the vendor or at the maximum one day after the submission of the application.

Moreover, since the complete tender document is normally uploaded in the AAI website,

the same can be downloaded from AAI website.

7.5.3 Names of the bidders to whom tenders have been sold must be kept confidential. The list

may not be comprehensive because there could be number of bidders who would

download the tender document and may submit the tender only on the last day of

submission of tender. There should normally be a gap of at least one day between the

last date of issue of the Tender document and the last date of submission.

7.5.4 In case of PQN route, supplier qualifying the eligibility criteria shall be given the tender

documents. There after the supplier will submit the technical and financial bid as per

the terms and conditions of the tender.

7.6 Tender Corrigendum

7.6.1 Sometimes bidders seek clarification on terms & conditions or Technical issues or

request for extension of time limit. On receipt of such request from the probable

bidders, response to their queries, without disclosing their identity, should be posted on

AAI web site after taking approval from Tender approving Authority so that response will

clarify the doubts and can be shared by all.


48

7.6.2 There may be instances when AAI decide to change some term, to clarify the condition

or any technical requirement in tender clause due to some reason then a tender

corrigendum will required to be posted on AAI web site after obtaining approval from

ED(CNS). Brief notice of issue of corrigendum shall be advertised in the same

newspaper where original NIT was published.

7.6.3 It is the responsibility of bidder to download all the corrigendum and attach with the

main document after signing all the pages as a proof of reading. Tender document

should clearly define this aspect.

7.6.4 Tender document should define the last date of seeking clarification. At least a time

period of one week must be given to bidders after issuing of such clarification for

submission of their bids. This period can be more than a week seeing the complexity of

the clarification posted on the website.

7.6.5 As far as possible all clarification/queries shall be clarified in one go to all the bidders.

7.6.6 All clarifications issued shall become integral part of the Tender. Since the complete

tender document is normally uploaded on AAI website, all queries from bidders and

their clarifications after proper compilation should be posted on the website as

corrigendum to the tender document.

7.7 Scale of Charges for Tender Documents

7.7.1 The cost of tender documents should be charged from the contractors as per given

below or directions from CHQ from time to time.

(a) Estimated Cost (E.C.) upto Rs.5.00 crore Rs.1000/-

(b) E.C. Beyond Rs.5.00 crore upto 10.00 crore Rs.1,500/-

(c) E.C. Beyond Rs.10.00 crore upto 25.00 crore Rs.2,500/-

(d) E.C. Beyond Rs.25.00 crore upto 50.00 crore Rs.5,000/-

(e) E.C. Beyond Rs.50.00 crore Rs.10,000/-

Note 1. : Cost of tender document for Global bids : To be decided by the NIT

approving authority.

Note 2. : For Sales Tax : The sales tax on the cost of tender form, if chargeable as

per the General Sales Tax Act of the respective state, it should be levied

on the cost of tender form at the specified rate of the respective state.

The sales tax, thus collected on sale of tenders, are to be remitted to the

sales tax authorities connected within the time limit specified in the Sales

Tax Act.


49

7.8 Submission of bids

7.8.1 There should be gap of 24 hours between the last date of sale of Tender and date of

submission.

7.8.2 Normally the Tenders are opened on the date of submission of tenders but it can be

extended by a date depending on the situation by ED (CNS).

7.8.3 The sealed Bids shall be received only through a Tender Box, placed in the office at a

conspicuous location, which will be indicated in the Tender document clearly. No tender

should generally be received by hand. However, since the size of bids in CNS-Planning is

quite big (various manuals and lot of literature of equipment is attached with the bid),

sealed bids may be accepted by hand but in such case the receipt of bids should be

properly accounted for and stored in a secured place.

7.8.4 All the bids, then, must be accepted up to the time specified the last date of submission.

The tender box shall be duly sealed at the end of the time notified for tendering.

7.8.5 The tenders received from bidders before the designated time of opening are normally

dropped in the Tender box. If the tenders submitted are voluminous and cannot be

dropped in Tender box, the tenders may also be kept in cupboard, Almirah or even in a

room having proper and secured arrangement of locking. Tenders beyond designated

time and date are not acceptable

7.8.6 All submitted tenders must be entered in the Tender Opening Register after the opening

of the tender box at the time of opening of the tenders. Since the tender document is

non-transferrable, it should be ensured that tender is submitted by the bidder in whose

name the tender document was actually issued.

7.8.7 In case of downloaded tenders, it should be submitted along with requisite tender fees

in the form of Demand Draft. It should be verified by the committee responsible for

opening of tender.

7.9 Receipt of Tenders by Post, FAX or E-mail

7.9.1 Receipt of tenders by post is permissible provided the same is received before the

closing of the tender box. Concerned section receiving the mail should be checked

for any tender that might be received but pending for delivery, such tenders

should be collected immediately. Mail receiving section should also be notified for

forwarding the mail to the addressee immediately. They should also put the date

and time of receipt of tenders by post. Receipt of tenders by FAX or email is not

permissible.

7.9.2 Bidders should be told through a clause in the document that in case of tenders

submitted by post, it will be bidders’ responsibility to ensure that the tenders are

brought to the custody of project officer before the designated time and date.


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7.10 Extension of Tender Closing/Submission/ Opening Date

7.10.1 Extension of tender selling, submission and opening date by 15 days shall be given

when sufficient number of bidder responses (at least two) are not available on the last

date of submission by GM (CNS). If Single bidder request to take his bid back and

intends to submit the revised bid as per revised bid submission date, the same shall be

allowed by the tender opening commiittee.

7.10.2 If after first extension, the number of responses are less than two then the relaxation in

the eligibility criteria, defined under Chapter 6 para 6.4.1 shall be given by the authority

competent to approve the contract to widen the scope for bidders participation. In

unforeseen situations, date of opening of tender can be extended at the sole discretion

of Executive Director (CNS) by recording the reasons thereof. A corrigendum note

should be published in news papers apart from loading on AAI’s website.

7.10.3 Period of such extensions shall be intimated through FAX / letter / telephone / email etc

to all bidders who have purchased bid documents. This information shall also be

uploaded on AAI’s web site.

7.11 E-Tendering

7.11.1 Airports Authority of India is working out an arrangement for E-Tendering. Procedures

once formalized shall be followed by all. It has been decided that all the tenders more

than Rs.1 crore and above at RHQ level and Rs.5 crore and above at CHQ level, shall be

executed through E-tendering. However, low value tenders may also be executed

through E-tendering depending upon the level of participation.


51

CHAPTER-8

Eligibility-Qualification & Technical evaluation

8.1 Introduction

After submission of bids, exercise of bid opening is to be carried out. Eligibility

qualification & Technical evaluation process is followed in a systematic manner to see

the suitability of bids for acceptance or rejection. This is an important matter and must

be done very carefully without any bias. This chapter concentrates on various stages of

the bid evaluation and submission of the evaluation report.

8.2 Tender Opening Committee

8.2.1 Prior to the day on which bids are to be opened, a committee comprising of three

members is to be nominated by ED(CNS) / GM (CNS). The level of the nominated

Executive shall based on the estimated value of the contract. One out of three members,

should be from department of finance to form tender opening committee. An extract of

the terms and conditions of the Tender governing the submission of Tenders should be

prepared for guidance of the Tender Opening Committee members so that all necessary

actions as required can be taken by them. The names of all tender committee members

and their signatures should be recorded in the Tender opening register.

8.3 Opening of Tenders

8.3.1 Date of opening of bid has to be as specified in the NIT. Normally opening of bids can be

on the last day of submission of the bids. It could be on a different date but then NIT

must speak so, or otherwise a corrigendum to the NIT should be issued.

8.3.2 Following activities should be planned and ensured well in advance before opening of

tenders :

a) Tender opening committee formulation

b) Arrange place for opening,

c) Access to Tender opening register,

d) Co-ordinate with other directorate officers (i.e. all member of the tender opening

committee) and bidders,

e) Identify storage space for technical bids after opening,

f) Secured storage of price bids.

g) Tender opening Register format is indicated in Appendix 8-A/8-B/8-C

TENDER PROCESS


52

8.3.3 In case tenders are dropped in a Tender box, the tenders received are taken out from

the Tender box after ensuring that the Tender box seal is in tact. The Tender box seal

shall be verified by the Tender opening committee. Tender committee members should

also sign on the envelopes before opening, in token of the proof that envelope was not

tempered or already opened.

8.3.4 Besides, name, contact number and signatures of the bidder or the authorized

representative of the bidder having attended the tender opening should also be

recorded in the tender opening register.

8.3.5 Envelope “A” containing EMD is to be opened first and Technical bids of the bidders who

qualify Initial eligibility criteria shall be scrutinized separately by duly formed

committee. Bids not having EMD can be summarily rejected by the tender opening

team. Tender opening record has to be kept with full detail in the Tender opening

register. This includes the EMD details for each bid. The Drafts received towards EMD

shall be forwarded to the Department of Finance.

8.3.6 In the event of bid(s) is/are found tempered or already opened, such a bid(s)

needs to be rejected outright by the Tender opening committee. All the valid

tenders should be given a serial number, for example the number “2/9” which

means tender number 2 as recorded in the tender opening register, and that it is

out of 9 tenders received.

8.3.7 The price bids of the accepted bids should be properly numbered and endorsed by

tender opening committee members. Thereafter, the all sealed envelopes containing

price bids of each of the accepted tenders should be put together and properly sealed in

another larger envelop or carton box in front of the bidders. The outer larger envelop or

carton box containing the price bids should be initialed by all the members of tender

opening committee and later handed over to the project officer for secured storage of

the price bids.

8.3.8 One copy of tender opening register which contains proceeding of the tender should be

placed on file for record. List of bidders having participated and list of accepted bids

should be recorded on file on the same day of opening of tender. In tune with the

condition of tender document, the project officer should ascertain the foreign exchange

rates as on day of opening of Envelope ‘A’ and place the same in record for future

reference.

8.3.9 In case of two bid tender process opening committee opened the envelope 1 & 2

of the bidders one after another then sometimes it becomes difficult to decide the

opening of envelope-2 of some of the bidders due to discrepancy in envelope A of

that bidder. Hence, it is therefore required to open the envelope-1 of all the

bidders before opening envelope 2 of all the bidders. In case the tender opening

committee cannot decide as to whether envelope no.2 containing price bid of


53

particular bidder should be opened or not, tender process shall be temporary

postpone and matter should be urgently brought before the tender accepting

authority for a quick decision. The opened envelope No.1 and unopened envelope

No.2 of the tenders shall be kept under safe custody of the concern DGM/ Sr.

Manager (CNS) until the revised date / time of opening is decided. On receipt of the

decision all the agencies shall be further intimated about the revised tender opening

date of second envelope i.e. price bid. It shall be ensured by the tender opening

committee that in no case the situation should arise where envelope No.1 and envelope

No.2 are opened simultaneously. Envelope-2 shall be opened only for the bidder whose

documents found in Envelope-1 are meeting terms and conditions of tender.

8.4 Evaluation of Tenders

8.4.1 Tender Evaluation should normally be carried out by the proposing executive. It could

also be by a team of executives to take care of the complexities of the work. Eligibility

evaluation, technical evaluation and financial evaluation shall be carried out by the

officer nominated by ED (CNS) as per the guidelines described in following:-

Estimated PQQ TEC Evaluation Financial Bid

Cost of NIT Evaluation Evaluation

Upto Rs 5 crore Manger and above Manger and Above Sr. Manger and above

From 5 crore to Sr. Manger and Sr. Manger and above Sr. Manger and above

Rs 30 crore above above. One member One member shall be

shall be of level of of level of Jt.GM(CNS)

Jt.GM(CNS)

Over and above AGM and above. AGM and above. AGM and above. One

Rs 30 crore One member shall be member shall be of

of level of GM(CNS) level of GM(CNS)

8.4.2 ED (CNS-P) will nominate the members of Technical Evaluation Committee depending

upon the estimated cost of the project and availability of suitable proficient CNS

Officers keeping in mind the number of bids received and time frame for completion of

task of evaluating bids.

8.4.3 Finance directorate shall nominate the officers for opening the financial bid as per

criteria listed below :

Estimated cost Level of Finance Executive Remark

of NIT for Bid opening

Upto Rs 5 crore Manager and above For E-bids evaluation, Executive

should have Digital signature

Over and above DGM/Jt. GM

Rs. 5 Crore


54

8.4.4 It is prerequisite to have Digital signatures for opening the opening, hence it is proposed

that ED (CNS-P) may nominate officers who are having digital signature for opening the

bids but not below the rank of Manger (CNS). Bids may be evaluated by nominated

officers other than bid opening officers of level indicated above.

8.5 Eligibility Evaluation

8.5.1 Before taking up the detailed technical evaluation, general requirements that do not

have technical bearing, need to be evaluated. There may be some bids which fail in the

preliminary evaluation; such bids can be rejected by putting up the preliminary

evaluation report to the authority that had accorded the TS.

8.5.2 There may be need to seek clarification while evaluating the eligibility criteria. In case of

global tenders the firms shall be given reasonable time but not more than 14 days time

to submit clarification / documents in case of any shortcomings observed in their

application with respect to the eligibility criteria.

8.5.3 EMD, Experience , Financial turnover, Performance certificate issued by end user shall

be examined against the terms and conditions of tender before putting up report to TS

authority.

8.5.4 In case some false or fabricated information submitted by bidder in support of

experience, performance certificate, financial turnover etc then the bidder tender shall

be rejected and EMD may be forfeited. A suitable clause shall be a part of Tender

document. An action shall be initiated to black list the bidder.

8.5.5 Under normal circumstances, pre-qualification evaluation shall be completed in five

working days. In case, some clarifications are required then the pre-qualification report

shall be submitted within two days after obtaining the clarifications.

8.6 Technical Evaluation and Recommendation

8.6.1 Detailed technical evaluation then needs to be carried out with reference to all the

technical requirements of the purchase or the work. It should be done in steps as

specified in the tender. Clarifications from the bidder can be obtained if required, but

this should be resorted to only when essential. For verification of the claim of

compliance, information available on internet can be tapped and should be recorded.

Technical queries shall be issued and responded by the Project Officer.

8.6.2 Technical evaluation shall be completed within the period of 10 working days. In case

equipment/system is complex in nature and more number of clarifications are required

then ED (CNS) assign the logical time frame while nominating committee for technical

evaluation.


55

8.6.3 All the findings of the Technical Evaluation need to be finally analyzed and

recommendation made. This is put up to accept the Technical bid and to accord

approval to open the financial bids of the technically qualifying bids one level below

the said approving authority of the proposal.. If the estimated cost of the project falls

under the approval of WAB/PAB, then outcome of Technical Evaluation committee

shall be put up for perusal of Chairman through Member (ANS) before opening the

financial bids. Acceptance of other cases below the power of WAC/PAC shall also be

put up to accept the Technical bid and to accord approval to open the financial bids of

the technically qualifying bids one level below the said approving authority of the

proposal.

8.6.4 Written intimation to the bidders who fail to qualify technically should be forwarded

immediately. EMD of such bidders should be refunded.


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CHAPTER-9

9.1 Introduction

9.1.1 Once the technical evaluation is completed and there is an approval to open the

financial bids, the financial bids of the technically qualified bidders are opened

and evaluated for final acceptance of the bid for award of work. Validity of the bid

should be ensured at this stage as opening an invalid bid can vitiate the whole

tender. Fresh validity date keeping in mind the likely time to be taken up to the

award of work should be obtained from all the bidders whose bid are not valid on

the date of opening of the Financial bids. If the estimated cost of the project falls

under the approval of WAB/PAB, then outcome of Technical Evaluation

committee shall be put up for perusal of Chairman through Member (ANS) before

opening the financial bids. Acceptance of other cases below the power of

WAC/PAC shall also be put up to accept the Technical bid and to accord approval

to open the financial bids of the technically qualifying bids one level below the

said approving authority of the proposal..

9.2 Opening of Financial Bids

9.2.1 As per the approval obtained from the TS authority all the valid financial bids of

technically qualified bidders are to be opened. Opening of the bids has to be done by a

three member committee with a representative from the department of Finance.

9.2.2 Opening Committee names should be approved by the TS authority. Names and the

signatures of all the members should be recorded in the Tender Opening Register. All

the financial bids being opened should also be entered in the register.

9.2.3 The bidders should be informed about the time and venue of opening of financial bid.

Signature of representative of firm attending the financial bid opening should be

taken on tender opening register.

9.2.4 Before the bids are opened list of points of attention for the committee must be made

available to all the members so that they are aware of the relevant provisions of the

terms and conditions of the tender which the bidders must comply in submission of

financial bids.

9.2.5 Each bid need to be signed by the committee members in token of the proof that

all bids were in good condition. Fresh number should be allocated to each bid as

recorded in the Tender Opening Register. After opening of the bids all pages need

to be signed by all the members and any Correction / Insertion or Overwriting

seen in the bids should be recorded as C=@/I=#/O=* where @, # and * are

number of Correction / Insertions or Overwriting found in the bid, by the

representative from Finance. Any special observation in the bids should also be

recorded.

OPENING OF FINANCIAL BIDS, FINANCIAL EVALUATION AND ACCEPTANCE


57

9.2.6 Remarks of the bidders, if any, shall also be taken on the tender opening register on the

day of opening financial bid.

9.2.7 All the rates can be read out to participants for their information and record .

9.3 Evaluation of the Financial Bids

9.3.1 All the bids opened are evaluated for the minutest detail and a financial Comparative

Statement should be made out. All ambiguities observed in the bid should be settled as

per the provisions in the tender.

9.3.2 Any ambiguity which cannot be addressed should be brought out by financial

evaluation team or officer and put-up to for decision by Financial Bid Accepting

Authority.

9.3.3 Financial comparison should be strictly on Price Schedule format and for each item of

the bill of material. Any ambiguity in quoted price format, ED (CNS) shall examine the

case and take appropriate decision with the approval of Competent Authority.

9.3.4 The responsibility of finance executive as regards the computation and checking of

tenders and preparation of comparative statements as follows :-

9.3.4.1 He is responsible for safe custody of tender documents during the period when they

remain in the Finance Branch. He is responsible for the arrangements for the checking

the computed tenders i.e. for seeking that satisfactory and efficient arrangements are

made for checking.

9.3.4.2 He should conduct personally a test check of the computed and checked tenders

sufficiency to satisfy himself reasonably that the checking work has been properly

done.

9.3.4.3 He should see that the comparative statement correctly incorporates the total as

checked on the individual tenders.

9.3.5 The entire bids should then be arranged in the ascending order for the total amount,

and first three bids assigned L1, L2 and L3 respectively.

9.3.6 The evaluation report should then be put up to the Competent Tender accepting

Authority. As it has a financial aspect, as per D.O.P., it is mandatory to seek financial

concurrence before acceptance of the lowest bid is accorded. Thus, Tender inviting

Authority should refer the case to Finance for financial concurrence. Refer Para-9.6

9.4 Financial Negotiation

9.4.1 Normally, there should not be any negotiation. Negotiation if at all shall be an

exception in case of proprietary item or in case of items with limited source supply

or exceptional circumstances only after due application of mind and recording valid,

logical reasons justifying negotiations. However, it could be carried out with L1

bidder only.


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9.5 Formulation of Negotiation Committee

9.5.1 In case of proprietary purchase of spares, equipment or obtaining repair support etc,

ED (CNS) may request Member(ANS) to formulate Negotiation Committee comprising

of Executives from the Finance Directorate and CNS directorate as per value of the

contract.

9.5.2 Normally, level of the members of the Negotiation Committee is one step below then

the level of officers authorized for accepting the tender as defined in DOP Chapter-7

Para 7.2.3.

9.5.3 After formation of Negotiation Committee, negotiation brief prepared by DGM (CNS) &

GM (N&S) and approved by ED (CNS) may be circulated to all the committee members

well in advance (At least one day shall be given to the Negotiation Committee Members

to examine & understand the scope of work, prices of previous supplies and case

analysis)

9.5.4 Supplier shall give the letter of confirmation on terms and conditions arrived during the

negotiation within a period of three days.

9.5.5 Once the negotiation meeting minutes are signed by all the Committee members, the

case may be prepared by the concerned Directorate and put up to finance directorate

for obtaining financial concurrence along with the letter from the bidder accepting the

decisions taken during negotiation meetings.

9.6 Acceptance of Financial Bid

9.6.1 Bids of the successful tenders shall be forwarded to F&A duly recommended by the

ED (CNS) along with tender scrutiny note containing the details of AA&ES, NIT,

Budget, no of tenders received, technically qualified, and successful bidder and

recommendation.

9.6.2 In case funds are not available against the scheme in the budget then re-appropriation

approval from the Competent Authority has to be obtained before considering

acceptance of the lowest offer.

9.6.3 Once the financial concurrence is available, Competent Authority can accept the L1

offer or the Proprietary or the financial offer without call of tender basis, as the case

may be as per the powers delegated in D.O.P.

9.6.4 Wherever the price of the lowest bidder is within five percent of the estimated cost,

lowest bid can be accepted by the Competent Authority as per the Delegation of

Powers.

9.6.5 Where, however, the price of the lowest bid is higher than the estimated cost by more

than five percent the lowest bid will be accepted by the Authority next higher to the

officer Competent to accept the tender as per the Delegation of Powers. However,

Chairman shall have full powers. Reasons for such acceptance with higher variation

than 5% shall be on record.


59

9.6.6 In case the proposal requires recommendation of PAB as per DOP, a brief PAB note may

be prepared in a format indicated at Appendix 11B. PAB note shall be concurred by

finance directorate.

9.6.7 ED (CNS) ask OSD to Chairman to put up the proposal of procurement for PAB

consideration in the next PAB meeting along with the PAB brief.

9.6.8 PAB brief may be circulated to all the committee members of PAB well in advance. It

should be signed on each page by concerned DGM/Jt.GM.

9.6.9 In case of foreign exchange payment, FE outgo approval shall be approved by the

Competent Authority as per the DOP.

9.7 Signing of Contract Agreements

9.7.1 Subject to appropriate administrative, technical and financial approvals being available

from the Competent Authorities and in accordance with prescribed rules and

procedures the following authorities may sign contract agreements in respect of

supplies including turnkey contracts on behalf of Authority after synchronizing with

the other areas of Project / Scheme on Civil & Electrical works, Installation and

Commissioning etc. as per limit indicated :-

Authority Limits Of Powers

ED (CNS) For all tenders approved by Chairperson / Member (ANS)

GM (CNS)CHQ/RHQ For all tenders approved by ED CNS(P) and GM (CNS)P


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CHAPTER-10

10.1 Introduction

10.1.1 After the acceptance of the bids, Letter of Intent, signing of contract and purchase

/work order has to be issued with reference to all the correspondence with the bidder

and tender document. It has to be further converted into an agreement for signing by

both AAI and the bidder. Complete process is detailed in this chapter with various

formats attached for guidance.

10.1.2 Before issue of letter of Intent, ED (CNS) shall ensure that site for the equipment

being procured has been available & identified. NOC process has been completed

for the said site. In case any Civil and Electrical work is required to be completed

before receipt of equipment, ED (CNS) shall submit a complete plan for

completing the C & E work before initiation award of work exercise. Any lapse or

ignorance on this part will lead to financial loss in terms of warranty & unused

inventory. Plan submitted by ED (CNS) for completion of C & E work in time shall

be strictly monitored and followed by GM (CNS) nominated by ED (CNS). It is very

essential to prepare a realistic plan so that the same can be achieved. Thus,

exercise for awarding work shall not be initiated without preparing above said

plan.

10.2 Issue of Letter of Intent (LOI)

10.2.1 Once the successful bidder is approved by the Competent Authority, Letter of Intent

shall be issued to the successful bidder within five working days The standard Performa

for issue of LOI is at Appendix-10-A.

10.3 Acceptance of Letter of Intent (LOI)

10.3.1 The successful bidder shall send unconditional acceptance of letter of intent to the

Executive Director (CNS), Airports Authority of India, Rajiv Gandhi Bhawan,

Safdarjung Airport, New Delhi – 110 003 (India) in the prescribed Performa at

Appendix-10-B within two working days of issue of letter of intent through fax /

courier / by authorized representatives or by any means as deemed appropriate,

failing which it shall be construed that he is not interested in the offer and hence

not accepted the Letter of Intent unconditionally.

10.4 Issue of Purchase / Works Order

10.4.1 ED(CNS) shall issue the Purchase Order /Work order as per the tentative guidelines

indicated in Appendix-10D. Additional clauses can be added as per the terms and

conditions of the contract.

10.4.2 Normally, two copies of the Purchase Order are issued to the successful bidder so that he

returns one copy in confirmation to acceptance duly signed by him on each page of the

order within three working days

ISSUE OF PURCHASE/WORKS ORDER AND, SIGNING OF AGREEMENT


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10.5 Execution of Agreement / Contract

10.5.1 The formal agreement/contract should be signed between the AAI and Authorized

signatory of successful bidder incorporating the agreed terms and conditions. There

should be no inordinate delay in signing the contract after issue of purchase order to the

successful bidder, which will result in consequent delays in the execution of the contract.

The reasons for the delay, if any should be duly recorded in writing and brought to the

notice of the authority which is one step above the authority competent to approved the

tender.

10.5.2 The agreement encloses all correspondence exchanged with the bidder during various

phases of the tender. Reference to complete bid documents submitted by the vendor,

Tender document with clarifications issued thereon, L.O.I. as signed by the bidder in its

acceptance, and all other correspondence exchanged with him form enclosures to the

agreement. Agreement has to be on judicial paper. Original copy is to be retained by AAI

while copies are to be given to the bidder, who now after signing of the agreement

becomes the Contractor, and all other concerned as deemed fit to have the copy.

Agreement should be signed by an executive on behalf of AAI as per the provisions of

the D.O.P. Chapter 7 para 7.5 on behalf of AAI

10.5.3 Terms of contract must be precise and definite and there shall not be any room for

ambiguity. Standard contract agreement at Appendix-10 C has been prescribed to

avoid this contingency. The alternative conditions given in the standard forms which

are not applicable to a particular contract should be invariably scored out.

10.5.4 No relaxation of specification in a contract or relaxation of the terms of an agreement

entered into by the Authority should be made without proper examination of the

financial impact involved in consequence of such relaxation. In case , any relaxation of

agreement or contract is given, it should be approved by Competent Authority.

10.6 Purchase Order / Works Order follow up

10.6.1 After the issuance of Purchase/Works Order and signing of contract, follow up on the

following aspects is necessary for timely completing the Project.

10.7 Submission of Performance Bank Guarantee

10.7.1 The successful bidder must furnish the Contract Performance Bank Guarantee as

specified in the tender normally within 30 days of acceptance of Purchase/work order.

This has to be done in a fixed period of time as per the terms and conditions of the

tender to avoid any delay in execution of work.

10.7.2 In case, successful bidder fails to submit the PBG within stipulated period, , interest @

12% p.a. on Performance Guarantee amount would be levied (non-refundable) for

delayed period of submission and shall be deducted from EMD.


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10.7.3 In case, successful bidder fails to submit performance bank guarantee within 60 days,

AAI reserves the right to forfeit EMD and cancel the order.

10.8 Opening of Letter of Credit

10.8.1 AAI shall open letter of credit as per the terms and conditions defined in the contract.

Refer L/C Performa at Appendix-10E as guideline. Suitable modification shall be carried

out as per terms and conditions of the contract.

10.8.2 It is essential to clearly specify the no. of part shipment allowed under the said contract.

10.8.3 Payments terms and condition shall be clearly defined under field no. 47. If L.D. is

required to be recovered from payments, then it should be clearly defined in the L/C.

10.8.4 In case supplier is responsible for custom clearance then it is essential to define the

responsibility of paying demurrage charges in case of delay in getting the consignment

custom cleared.

10.8.5 Any request of supplier for modifying the terms of letter of credit shall be brought to

the knowledge of ED (CNS) and should be with the concurrence of Finance Directorate if

the same is having financial impact.

10.9 CPM / GANTT / BAR Chart for the Work

10.9.1 In case of SITC Contract, the supplier has to submit CPM / GANTT / Bar Chart giving

detail of time and dates for each activity to complete the work. Bar chart shall be

monitored regularly to ascertain progress of the work.

10.10 Civil and Electrical work requirement

10.10.1 In case of SITC Contract, supplier shall intimate the Civil and Electrical work

requirement after visiting the site for starting the installation work. Civil and Electrical

works should be anticipated and requisition issued at early stage, sothat supply,

installation and commissioning work does not get delay due to Civil or Electrical work.

Nominated officer by ED(CNS) shall also visit site and follow-up on regular basis.

10.10.2 ED (Engg.) shall inform the necessary time required for the specific activity under the

project.

10.11 Project Leader/Project Manger/Project Coordinator details

10.11.1 Both the contractor and AAI have to exchange detail of Project In-Charge as per the

tender conditions. The bidder must submit his details in writing for inclusion in the

agreement to be signed by him.

10.12 Delivery Schedule

10.12.1 The supply of goods ordered should be completed within the stipulated delivery

schedule.


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10.12.2 FAT shall be completed as per schedule.

10.12.3 In case equipment is dispatched in part shipment, then sets supplied in each shipment

should be complete in all respects. It should not happen that the supplied items cannot

be used without arrival of next shipment.

10.13 Yardstick of posting Project-in-charge will be as under :

10.13.1 CNS Projects are high technology intensive projects involving both aircraft and

passenger safety and security. Handling of these projects requires high technical skills

with commensurate experience in dealing with such projects.

10.13.2 For the projects, SM/DGM/JGM/GM or ED (CNS) level of officer be positioned as

Project-in-charge as additional strength depending upon magnitude of project or

group of projects as decided by ED (CNS-P).

10.13.3 Project management set up will be done at the CHQ level. In all the cases, the project

heads will be supported with requisite technical and other categories of manpower

duly provided with necessary office equipment, communication and transportation

facilities. Under one project in-charge, at least one steno cum PS and one subordinate

officer shall be available.

10.13.4 In case of sanction of major projects, required manpower should be identified and

sanctioned at the approval stage itself taking into account the distribution of workload

in the project.


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CHAPTER-11

11.1 Introduction

11.1.1 In order to provide post-warranty maintenance support for the installed equipment/

system following methodologies may be adopted. Under all these circumstances,

requirement of spares is imminent.

1. In-house maintenance

2. In-house maintenance with e-mail/phone support from OEM

3. Hardware Repair / Software Maintenance Contract (HRSMC) in case of non-

availability of In-house technical know-how.

11.1.2 After obtaining in principle approval for procurement of spares, it is essential to identify

the route for procuring spares. Whenever spares requirement is for equipments which

are installed at various Airports or AA&ES approval (Technical Sanction & financial

concurrence) falls under the power of CHQ as per DOP guidelines, RHQ shall send the

proposal to ED (CNS-OM) for further procurement action. While procuring the spares at

RHQ or Metro Airport level also following guidelines may be kept in mind.

11.1.3 On receiving the indent from Metro Airport or GM (CNS) Region, mode of procurement

shall be decided by ED (CNS-OM) i.e. Proprietary purchase or limited tender mode or

Open market mode. COTs spares are normally procured from open market and

Proprietary spares are procured either through OEM or System Integrator. Directorate

of CNS-OM shall obtain the In-Principle approval from Member (ANS) as per format

Appendix2-C.

11.2 Consolidation of Spares Requirement & Technical Sanction

11.2.1 Some spares are normally procured at the time of procuring main equipment to

support operation for initial 1-2 years. Based on the experience of operation and

maintenance of equipment, requirement of spares for mid-term (2-3 years timeframe)

and long-term (5-6 years timeframe) is to be evaluated by the field stations and

consolidated for procurement.

11.2.2 In case of the requirement of spares (modules/LRUs) on all India basis (for the similar

type of equipments), the requirement is to be compiled through inputs received from

regional offices (which represent the field stations) for various equipments/ systems)

and respective SMUs. This exercise is essential to obtain the quantity discount benefit

and sharing of resources among different stations to reduce inventory cost. It is

recognized that in some cases, all the procured spares may not be utilized during the

operational life of equipment but required to maintain high level of safety and availability

of equipment. Therefore, spares shall be procured judiciously keeping in view the

inventory cost versus operational requirement.

SPARES PROCUREMENT


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11.2.3 Thereafter, in-principle approval, Technical Sanction, decision on mode of procurement

(whether through open tender, limited tender or proprietary purchase) is to be

processed by the Directorate of CNS-OM, as per the provisions of DOP. Member (ANS) is

the Competent Authority for according in-principle approval based on the

recommendations given by ED (CNS-OM), who is the Technical Sanctioning Authority.

11.2.4 In case of consumables and components required for repair of modules, respective

regions may initiate the procurement action for local requirements, as per the provisions

of DOP. In case of repairs, various SMUs are already empowered to take suitable

decisions based on operational judgments to procure components for repair of modules

as applicable.

11.2.5 Following criteria should be considered towards projecting the Spares’ requirement for

various equipment/systems.

a) Year of installation of equipment.

b) Useful life of equipment, as per Appendix-2A

c) Number of spares available (which were procured along with main equipment) and

estimated time in processing the award and receipt of delivery

d) Failure rate of modules/LRUs and stock available

e) Obsolescence threat, if any.

f) Replacement Plan of the equipment/system.

g) In-house repair capability – whether SMU is set up or not.

h) Technical judgment based on experience.

i) Critical recommendations given by the original equipment manufacturer

(OEM)/System Integrator.

j) Refer Appendix -11A

11.2.6 After consolidation of spare requirement, proposal may be put-up for obtaining

Technical sanction as per DOP Guidelines indicating quantity to be procured along with

justification and mode of purchase.

11.2.7 Once the Technical sanction is obtained from the Competent Authority as per DOP

guidelines, GM(CNS), CHQ shall ask GM-CRSD for preparing estimated cost. Estimated

cost of procurement may be obtained from OEM or from open market or from the

previous purchases as the case may be. Basic principle as described under Chapter-4

may be adopted for preparation of estimates.

11.2.8 After obtaining the estimated cost , GM(CRSD) shall put up proposal to ED(CNS-OM)

indicating the budget provision, mode of purchase, estimated expenditure for seeking


66

approval of obtaining final quote from open market or OEM as the case may be.

ED(CNS-OM) may review the quantity to be procured depending upon the availability

of budget, the estimated cost of the items to be procured, and operational

requirement. On receipt of the approval from ED(CNS-OM) for the final quantity to be

procured, GM (CRSD) shall initiate the procurement process either through open

tender or through OEM as per the approval. After obtaining the firm pricing, the

proposal may be put up to finance Directorate for financial concurrence before award

of work.

11.3 Procurement through OEM

11.3.1 After obtaining the quote from OEM for the quantity to be procured, an exercise shall

be carried out by GM (CRSD) to compare the prices quoted by OEM Vs previous

supplies.

11.3.2 Care shall be taken to compare the prices offered by OEM/System Integrator at the time

of bidding for the original equipment.

11.3.3 Such comparison shall be thoroughly analyzed by DGM(CNS), GM (CNS) & ED (CNS)

before putting up the case for negotiation

11.3.4 Based on the analysis, a brief shall be prepared for the Negotiation Team indicating

the following:

a) Scope of Work

b) Price comparison with previous supplies

c) Price comparison with the initial bid of the supplier

d) Range of rate escalation

e) Budgetary quote submitted by the OEM/ System Integrator shall also be

examined by the Unit In charge of the facility for which spares are being procured

to analyze the reasonability of the rates. His comments shall also be part of the

negotiation brief. Unit-In-Charge shall check the reasonability in terms of cost of

sub-system versus cost of main system, very high price of a non-critical module

etc.

11.4 Financial Negotiations

11.4.1 After completing the above exercise, Negotiation process shall be followed as described

in Chapter 9 para 9.5 of the manual.

11.5 Spares procurement from Open Market

11.5.1 For procurement of spares from open market, process already described in earlier

Chapters for the procurement of CNS equipments from open market shall be

followed.


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11.6 Hardware Repair / Software Maintenance Contract (HRSMC) or AMC

11.6.1 After obtaining in principle approval from Member (ANS) for entering into any Hardware

Repair Support Contract, Software Maintenance Support Contract or Annual

Maintenance Contract, following guidelines shall be followed for before obtaining

AA&ES (i.e. Technical sanction and expenditure approval) :

a) Scope of Work : Scope of work for which contract is required needs to be

identified with the help of CNS executives, who have undergone training on the

equipment/ facility and CNS Executives who are currently maintaining the

systems.

b) Terms & Conditions : Terms and conditions of contract shall be properly defined

as per the guidelines indicated in Appendix-11C wherein critical and important

contract clauses are mentioned. Other clauses shall be added as per the scope of the

work.

c) Budgetary Quotes : Budgetary quotes from OEM shall be obtained for the scope

of work with terms and conditions identified as per para (b) above.

d) After obtaining budgetary quotes, case may be put up for conducting negotiation

with the OEM.

11.7 Negotiation of contract and finalization of Contract

11.7.1 After completing the above exercise, ED (CNS) shall formulate a committee comprising

of a Member from the Finance Directorate to discuss the different clause of the contract

which may have financial impact like Liquidated damage clause, Taxes clause, Warranty

clause , Performance Bank guarantee clause, payment clause, patent clause, liability

clause etc .

11.7.2 Once all the clauses which have financial impact on the contract are sorted out then,

negotiation shall be carried out with contractor by following the procedure described in

chapter 9 para 9.5 .

11.7.3 On completion of negotiations, Minutes of the Meeting shall be prepared by the

Nominated Member (Secretary) of the Committee and circulated among all the

committee members for obtaining their approval and signature.

11.7.4 Once the negotiation meeting minutes are signed by all the Committee members, the

case may be prepared by the concerned Directorate and put up to finance directorate

for obtaining financial concurrence.

11.7.5 If the procurement falls under the PAB’s/PAC’s jurisdiction, a brief PAB/PAC note may

be prepared in a format indicated at Appendix-11-B duly approved by Finance

Directorate.


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11.7.6 ED (CNS) request PS to put up the proposal of procurement for PAB/PAC consideration

in the next PAB/PAC meeting along with the PAB brief.

11.7.7 PAB/PAC brief may be circulated to all the committee members of PAB well in advance.

11.7.8 After Financial Concurrence, approval for FE outgo as applicable may be obtained from

Competent Authority.

11.7.9 Final approval of the Competent Authority as per DoP for signing of contract

11.7.10 Follow up for execution of contract and record of performance during the period of

contract. The performance is to be objectively reviewed and recorded so that necessary

penalty clause may be enforced for non-performance as the case may be. All instances

of non-performance are to be recorded and suitable communication to this effect is to

be made to the contractor as prior intimation


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CHAPTER-12

12.1 Background

The use of radio frequency spectrum needs to be coordinated to avoid

interference problem. As the uses of wireless applications are wide and varied, it is

crucial to ensure that the spectrum is efficiently and effectively managed to

optimally benefit the society and economy. Accordingly, the Indian Telegraph

Act, 1885 seeks to ensure orderly and disciplined use of radio frequency

spectrum in India.

THE INDIAN TELEGRAPH ACT, 1885 stipulates that establishing, maintaining

and operating any wireless equipment or apparatus or instrument used or capable of

use for transmission or reception of radio waves shall require permission from

Wireless Planning and Coordination Wing (WPC), Department of Telecommunication,

Ministry of Communication and Information Technology, Government of India.

Except as specifically provided by the Ministry, a license known as WPC Operating

License shall be required in order to use allocated frequencies for particular services.

Any unauthorized operation and breach of condition of license attracts severe

punitive measures.

Radio licence is an authorization issued by WPC for the installation and operation of

radio apparatus and is issued on a site-specific basis. The licenses are issued for each

apparatus and each additional apparatus would also require incorporation into the

licence.

The licensees are responsible for ensuring that their radio communication networks are

properly planned and coordinated prior to operation, including approval of antennas

and their supporting structures and other conditions of licence applicable to all

licensees.

12.2 Types of WPC clearances/licenses specifically required by AAI for the use of

CNS networks:

a) WPC frequency authorization

WPC issues frequency authorization known as WPC decision letter (also called

Agreement-in Principle) for each network based on application filed online in

WPC website. This clearance is valid for 6 months or one year as the case may be

for the user to complete all the prerequisite formalities to operate the facility. The

spectrum charge comprising royalty and licence fee is mentioned in each decision

letter and is payable every year. The user is under obligation to regularly make

the payment each year in advance whether the facility is operational or not. Any

delayed payment attracts penalty/late fee @ rate of 2% per month cumulative of

spectrum charge.

RATIONALE FOR WPC LICENSING OF RADIO FREQUENCY & IMPORT LICENCE


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b) WPC Import License

Any radio equipment can be procured/ imported only after obtaining WPC import

license. The validity of this license is only for 6 months. WPC levies Rs.500/- for each

import licence. Apart from DGFT license, WPC Import License is statutory

requirement for the import of radio equipment.

c) SACFA Full Siting Clearance /Additional Antenna Clearance

Each radio network requires SACFA Full Siting clearance/Additional Antenna

clearance as the case may be wherein the criteria such as electromagnetic

compatibility and aviation hazards are taken care of. This is one of the prerequisites

for mandatory WPC Operating License.

d) WPC Operating License

WPC Operating Licence is a mandatory requirement and shall be required in order to

use allocated frequencies for particular services. This license is renewable every

year on payment of applicable spectrum charges.

12.3 DGFT Licence:

Ministry of Commerce and Industry, Government of India has restricted the import of

certain items for which Import license is required. Import License is granted by

Director General of Foreign Trade (DGFT) Ministry of Commerce and Industry. The list of

restricted equipments as on date is shown in Appendix-12 Latest information on

restricted items is available on the DFFT web site i.e. (www.dgft.gov.in) and also

provided in the Custom Tariff Manual which is commercially available and issued every

year. AAI`s most of the CNS equipments are covered under the exim code of 8525 and

8526.

This license includes a customs clearance permit and WPC Import License or any other

required permission/clearance in line with THE FOREIGN TRADE (DEVELOPMENT

AND REGULATION) ACT, 1992.

The import license usually takes two to three months to be issued by the concerned

authorities. It requires continuous follow up to pursue the case. Items cannot be custom

cleared in absence of Import license. Any delay in obtaining Import license invites

demurrage charges. It is always advisable essential to apply the Import License in time

to avoid demurrage charges on the imported items.

Following steps are required to be followed for the purpose of obtaining Import

License from DGFT :

1. On receipt of purchase order by the Mgr (CNS) who is responsible for obtaining

DGFT licence, the requirement of DGFT license is to be assessed.


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2. If required, the application is made in ANF 1 and ANF 2 ( to be filled in triplicate)

along with the requisite fees and other enclosures viz the Invoice, Purchase order

etc

3. The application form is to be deposited in the Office of Joint Director General of

Foreign Trade.

4. Application form is also to be deposited in o/o DGFT, Udyog Bhawan along with the

acknowledgement receipt from the Jt. DGFT.

5. Keeping in view the urgency, ED (CNS-P) can hire the services of consultant for

acquiring DGFT / WPC Import License etc

12.4 Conclusion

Any import of CNS radio equipment shall concurrently entail mandatory DGFT

license, WPC Import License and WPC operating License is a statutory

requirement for regular operation of the facility and shall be taken well in

advance to avoid demurrage charges.


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CHAPTER-13

13.1 Introduction

After the signing of Agreement the execution of work begins. Each project has to be

managed properly at all the stages. The Work starts with an initial kick off meeting to

outline the plan of execution. The work at site begins by handing over of site with

formalities and commitments on the part of AAI and the contractor listed systematically.

Each activity of the contractor like supply, storage, installation, testing, trials and

commissioning has to be closely monitored. Complete execution of the project is

governed by the agreement. This Chapter takes care of all aspects of post award issue.

13.2 Formation of Project Execution Team

13.2.1 For smooth execution of project, it is essential to identify the various activates to be

carried out under the project. ED (CNS)/GM (CNS) shall assign the responsibilities to the

CNS officers available under his control for completing planned activities in a well

defined manner. Typical activities are defined below:-

Sr. Name of activity Assigned officer

No.

1. Project co-ordination at CHQ Nominated by ED(CNS)

2. Project officer under Project co-ordination Nominated by ED(CNS)

3. Officer monitoring Bank Guarantee Nominated by ED(CNS)

4. Officer responsible for opening Letter of Nominated by ED(CNS)

credit/Payments

5. Officer responsible for document verification Officer responsible for

received from bank payments in co-ordination

with project coordinator

6. Officer responsible for scrutinizing training Nominated by ED(CNS)

document.

7. Officer responsible for co-coordinating training Nominated by ED(CNS)

activities like training schedule, VISA etc

8. Officer responsible for examining FAT and SAT Nominated by ED(CNS)

Document along with project

coordinator.

9. Site identification Project coordinator with

GM (CNS-Region)

PROJECT EXECUTION MANAGEMENT


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10. Monitoring C&E works DGM (CNS-P) posted at

region in coordination with

Engg.

11. Installation & Testing of system Nominated by GM (RCDU)

or Supplier as the case

may be.

12. Officer responsible for safety assessment GM (CNS) of Metro Airport

requirement of the system/equipment or GM (CNS-Region) for

non-metro Airports.

13. Co-ordination with DGCA for fulfilling CAR GM (CNS-Planning)/GM

requirement (CNS-N&S)/GM (CNS Ops)/

GM (ATM-CHQ) depending

upon project handling

directorate.

14. Team conducting FAT/SAT Nominated by ED (CNS)

15. Officer signing completion certificate As per DOP

16. Officer responsible for record keeping like Project coordinator along

In-principle approval, AA&ES approval, TS, with Record keeping

Tender document, Technical bids of vendors, officer in directorate shall

correspondence with vendors, Award letter, be nominated by ED

details of payments, FAT/SAT report, Training (CNS).

completion report, Hindrance register, EOT,

project completion report

17 Officer responsible for budget allocation Nominated by ED (CNS-P)

13.3 Project Kick off meeting:

13.3.1 The first step in the execution of the work is to conduct a project Kick Off meeting

in case of SITC Contract. Supplier shall make presentations briefing the Project

details and introducing the Contractor’s Project Team to the Project Coordinator of

AAI. Following needs to be shared with Contractor during the kick-off meeting

and during progress review meetings at regular interval agreed by both the

parties. Entire project execution team should attend the project kick-off meeting

as far as possible.

13.3.2 Briefing the Contractor of the Security and Safety requirement, and the procedure for

obtaining the passes for the workmen.

13.3.3 Contractor must also be made aware of the timings for the work.


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13.3.4 Execution schedule should be firmed up after discussing the mile stones with definite

dates associated with each as per the contract. This schedule will include study, supply,

installation, testing, training, trials and commissioning of the facility as the case may be.

13.3.5 Progress review meeting schedule must be finalized and agreed to by all in the kick-off

meeting. Format for recording minutes of the meeting should be specified. The

contractor should normally issue the progress report which should be reviewed in the

Project Progress review meeting.

13.3.6 Project Progress should also be monitored at higher levels as per the schedule agreed to

in the first site meeting.

13.3.7 A procedure for recording site instructions by AAI Project team should be drawn and

followed. This should include record of hindrances faced in the execution by the

contractor. For each record definite action must be taken

13.4 Project Execution

13.4.1 Supply of the items may be a part of the work which could be carried out as a parallel

activity to other activities forming the Work. All the activities need to be monitored for

execution as per the plan submitted by the contractor and as agreed to by the AAI.

Execution of work needs attention on the following counts:

a Execution is as per plan envisaged in the Tender and the Bar Chart/Plan submitted

by the Contractor.

b All time schedules are adhered to.

c The site has been handed over to the contractor and there are no strings attached

with that.

d The Contractor has access to the site, and that he is able to maintain his work

schedule.

e Any logistics to be extended by AAI is made available to the contractor.

f Periodical project progress meetings are held regularly.

g The Contractor has no difficulty in airing his problems and grievances to the AAI

Project Manger/Coordinator.

h Storage site for the items is convenient to the work execution.

i The Contractor is not causing any inconvenience to the AAI personnel at the

worksite.

j AAI experts are available whenever any discussion is required with the Contractor.


75

k All permissions for the Contractor to carry out work outdoor or indoor are available.

l The Project Manager and site Coordinator identified by the Contractor are regularly

supervising the work for quality of work.

m The Contractor has submitted the testing procedure for testing at various

stages as per the order and that testing teams have been nominated. It is also

to be ensured that testing team members are competent to carry out the

testing.

n Contractor has submitted training plan and has arranged it as per the requirement

and convenience of the AAI personnel.

o Sufficient manpower shall be available to operate and maintain system / equipment

during the parallel mode of operation.

13.5 Site visits and inspections

13.5.1 Project coordinator or any other member of the team nominated by project coordinator

should regularly visit Project site and conduct inspection for the quality of workmanship

and to ascertain that work is being carried out as per design and on schedule. For

example it is essential to find out the progress of Civil & Electrical work, grounding

system, power supply system, lightning arrestor status etc and take corrective action

wherever desired.

13.6 Factory acceptance test (FAT)

13.6.1 As per the tender condition, AAI team shall visit supplier factory to inspect the

Operational & Technical specification of the system/equipments before the same are

dispatched to AAI site. The Contractor should accordingly make a pre-dispatch

inspection plan and offer to AAI for carrying out the inspection.

13.6.2 Supplier shall provide the Test procedures for conducting FAT well in advance for

examination. Test procedures are to be studied in light of Tender requirement. It

shall not be possible to test all the Tender requirement but Project co-ordinator shall

examine the test procedure and suggest additional procedure to test the critical

specification of the system as far as possible.

13.6.3 Project coordinator shall obtain approval from ED (CNS)/GM (CNS) before requesting

supplier to incorporate additional test as recommended by project In-charge or FAT

procedure review team formulated by ED (CNS).

13.6.4 Project coordinator shall process the case for requesting nomination of FAT team

from the Competent Authority well in advance so that the nominated FAT team

members can study the system specification and tender requirement before

proceeding on FAT.


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13.6.5 Following guidelines shall be followed by nominated FAT team while conducting Factory

Inspection test:

a. The items are new

b. The items are of same make and model as offered in the tender

c. The items conform to the Technical Specifications

d. If the number of items to be supplied are less in quantity, FAT team should note the

Serial Number of each item and sub item (removable from the main item) and sign

the inspection report with their observation, if any.

e. In case number of items to be supplied are more in numbers then a sample test may

be conducted on at-least 10% of the ordered quantity to test the reliability &

functionality of items.

f. Items not found conforming to the technical specification should be rejected for

dispatch, and the same should be projected with reasons in the inspection report.

Such items can be accepted only once the supplier rectifies the deficiencies pointed

out by AAI team and items are re-inspected by AAI team. AAI may also accept the

quality control report of supplier if accepted by visiting FAT team.

g. FAT Team shall reject the higher version of Model of the same make unless the same

was informed by supplier in advance and approved by AAI. Supplier shall supply the

latest version of hardware of same make with better technical features available in

market subject to approval by AAI before FAT team proceed on inspection to their

site.

h. In case FAT team rejects equipment/system and another inspection /testing by AAI

team is required at factory then the expense for the second inspection shall be borne

by the contractor.

i. Once the consignment is cleared for dispatch, the contractor may request for road

permits as per the requirements of the state government. Necessary help has to be

extended for obtaining Road permit by the Officer-In-Charge of the consignee

airport.

13.7 Loss of items during dispatch or Items found damaged at the time of receipt

13.7.1 CRSD is responsible for dispatching the CNS equipment / Spares to various field stations

from time to time. Transit insurance cover must be taken for all the supplies. It has been

observed that on receipt of item in damaged condition most of the stations are not

lodging the complaint in writing with the transport carrier viz.. Airline / Post office /

Courier etc. In case any consignment is received in physically damaged condition then

it is a mandatory requirement to lodge a complaint with a transport carrier


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immediately and take acknowledgement of the same. In case the complaint is not

lodged with transport company, the insurance Company limits the claim to 75% of

Insured cost.

13.7.2 After obtaining the acknowledgment from the transport carrier, insurance company has

to be intimated to depute their surveyor and the consignment, received in physically

damaged condition shall be opened in the presence of surveyor for claiming insurance

from the Insurance Company. The above procedure shall be followed in coordination

with GM (CRSD) in case insurance is done by GM(CRSD).

13.8 Verification of Documents

13.8.1 Normally, in case of foreign supplies, Supplier dispatches the goods against letter of

credit opened by AAI as per terms and conditions of the contract.

13.8.2 Supplier shall be asked to submit Performa invoice and packing list well in advance for

the purpose of verification of documents and avoid delay in getting the consignment

custom cleared.

13.8.3 Supplier shall not substitute any item as mentioned in purchase order without prior

approval from AAI. In case supplier substitute the item or supply equivalent item

without the approval of AAI, AAI shall not clear the documents and any demurrage

due to delay in getting the consignment custom cleared shall be on account of

Supplier. Same shall be incorporated in terms and condition of Tender and Letter of

Credit.

13.8.4 On receipt of documents from finance directorate, Mgr (CNS) who has been assigned

the job of clearing payments will put-up the paper to Project officer after completing

following exercise:-

a) Check the Invoice Value with Purchase order value and compare the payment

claimed by supplier as per terms and conditions of the contract. Any variation shall

be brought to the notice of Project In-charge.

b) Check for any delayed supplies which invites any L.D.. If any, it shall be brought to

the notice of project In charge.

c) Liquidated damages shall be charge from the bank guarantee provided by

contractor towards L.D., if any. In case, liquidated damages is required to be

recovered from the last payment then care shall be taken while releasing the last

10 % of total payment so that Liquidated damages can be recovered as per

contract or otherwise L.D. shall be recovered as per the terms and condition of

the tender.

d) Compare the packing list with purchase order bill of material. Any variation in the

packing list shall be brought to the notice of Project In-charge.


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e) Check for any duplicate payment claimed by supplier. If so, same should be brought

to the notice of Project In-charge.

f) Check for any missing item as per purchase order. If so , same shall be brought to the

notice of Project In-charge.

g) On completing the above exercise, Mgr (CNS) will put-up the papers to Project In-

Charge.

13.8.5 On receipt of documents verified by Manager (CNS), Project in-charge shall take

following actions :-

a) Any variation in claimed Invoice Value shall be sorted out with supplier before the

dispatch of goods.

b) In case of delayed supplies check for EOT with levy or without levy was granted to

supply or not. If EOT was granted by the Competent Authority the copy of the same

shall be attached with the documents.

c) Any variation in Packing List against the Purchase Order shall be brought to the

knowledge of supplier and matter should be sorted out before dispatch of goods or

items. Deviations shall be allowed only if it is approved by Competent Authority and

with amendment in the Purchase Order.

d) In case of missing items, value for the same shall be deducted from the Invoice

value.

e) After sorting out all the observations put up by Manager (CNS) documents shall be

sent to Finance Directorate through GM (CNS) and ED (CNS) as the case may be for

further action.

13.9 Receipt of the items

13.9.1 Receipt of the item against which 60% payment is to be released shall be checked and

certified after receiving the packed items in good condition.

13.9.2 Inventory check exercise shall be carried out in the presence of company

representative. Inventory check report shall be forwarded to CHQ indicting any

discrepancy in the packed list vis.a.vis actual items.

13.9.3 All items on delivery have to be taken on stock and certified that items are received in

good condition. Any item received in damaged condition has to be pointed out to the

Contractor, who has to replace the item if it is found damaged or take up with Insurance

company. The certificate of receipt in good condition needs to be enclosed with the bill

for payment to be released to the Contractor. The items need to be stored properly and

may need to be handed over back to the Contractor if he has to carry out installation


79

work. Supplier may need some space to store the items and associated installation

material temporarily till the installation is completed.

13.10 Extra, Subsitituted & Deviated Items

During execution of contract, there are chances that additional items may be required to

complete the task or some of the items might become obsolete due to advancement of

technology. Under such conditions, DOP shall be referred for accepting extra,

substituted and deviated items as per the powers given under chapter 7.9. However, the

following may be kept in mind while accepting any deviation from the purchase order.

13.10.1 Extra Items : Items which are completely new and in addition to the items provided

in the contract. Such items shall be accepted after recording complete justification for

such requirement. Mode of acquiring extra items shall be clearly identified before

seeking approval from the Competent Authority. Such additional items shall not

change the main scope of the work.

13.10.2 Substituted items : Items which substitute the existing ones or are taken in lieu of

those already provided in the contract. Such substitution shall be avoided as far as

possible unless it becomes un-avoidable due to availability of higher version of model

of same Make with better or same technical features. Substitution of items shall also

be accepted in case the contracted item has gone obsolete or not available. Certificate

for the same shall be required from the OEM of the equipment before accepting the

substitution. Sometimes OEM is not in position to supply the item as per the delivery

schedule prescribed in contract. In that case also, items can be substituted.

13.10.3 Deviations in quantities of items : Sometimes more number of quantities of items

are required to meet the system requirement. In other words, the nomenclature of

work remains the same but the quantities vary with those provided in the agreement.

All plus and minus deviations beyond the stipulated limit mentioned in Chapter 7.9 of

DOP subject to approval by the T/S Authority, can be accepted to meet the Project

requirement

13.10.4 Fixation of rates for extra/substituted items : As stated in above para deviation

/ substitution / extra items may be needed while executing the project. Hence, it is

difficult and time consuming process to initiate procurement process to meet the

requirement of additional items or obtaining rates of imported items. Normally,

contractor, who is executing the contract, is asked to supply the extra or substitute the

items by justifying prices for the same. Contractor shall be asked to justify and support

the quoted price with documents or invoices / quotations from the OEM. As far as

possible quoted prices shall be compared with the previous supplies or through

internet or through any authorized agents of the items to ascertain the reasonability of

rates.. A negotiation shall be carried out by duly formed committee by the Competent

Authority, if felt necessary.


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13. 11 Extension of Time with levy or without levy

13.11.1 The time allowed for carrying out the work as entered in the contract should be strictly

observed by the contractor.

13.11.2 Sometimes during execution of contract, it is required to extend the time limit as

prescribed in the contract due to many reasons like non-readiness of site, delay in

nomination of trainees or FAT team etc. Under such cases extension of time shall be

allowed to contractor by the Competent Authority as per DOP guidelines.

13.11.3 Details of expenses incurred due to delay by contractor, must be kept and documented

properly to substantiate and support LD claim, during arbitration/court case.

13.11.4 Date and duration of EOT approval with or without levy shall be entered in the project

monitoring register and copy of the same shall be handed over to payment releasing

officer.

13.11.5 Case for consideration and grant of EOT by Competent Authority should be examined

and decision shall be given within five working days.

13.11.6 Liquidated damages shall be charge from the bank guarantee provided by contractor

towards L.D., if any. In case , liquidated damages is required to be recovered from the

last payment then care shall be taken while releasing the last 10 % of total payment

so that Liquidated damages can be recovered as per contract or otherwise L.D. shall be

recovered as per the terms and condition of the contract.

13.12 Site Inspection by Senior Executives

13.12.1 The progress of the projects shall be monitored by On-line Project Monitoring System

(OPMS) or through periodical progress review reports. Site visits for inspection and

review by Senior Executives add value for early completion and control of the Projects.

Such site inspections comprise the following:

a) Briefing by the Station-in-Charge on the status of the Project

b) Site visits to see the progress of Installation Work

c) Meeting with the Contractor and Project Coordinator, and discussion on

i Site issues and solutions

ii Contractor issues and solutions

iii Revised Target Scheduling and action plan for pending works

iv Minutes of discussion and follow up.

v Any other issue where decision is pending.


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13.13 Procedure for Monitoring Performance Bank Guarantee submitted against

supply of equipment, system and spares.

13.13.1 Performance Bank Guarantee is submitted by supplier as an Insurance against the

satisfactory operation of the supplied items in accordance with the technical

specifications prescribed in the Tender Document. The Bank Guarantees shall be valid

upto a period of six months after completion of warranty.

13.13.2 Responsibility of monitoring status of Performance Bank Guarantee submitted by

suppliers under different contracts shall be assigned to Manager (CNS) / Asst.

Manager (CNS). The assigned officer shall follow the following guidelines for

Monitoring the status of PBG.

13.13.3 After 15 days of receipt of purchase order from project officer, officer shall update the

status to GM-CNS regarding status of submission of performance bank guarantee. In

case of non-receipt of PBG , GM-CNS(P) will take up the matter with the supplier.

13.13.4 On receipt of bank guarantee, check for its correctness in terms of text, PO no.,

validity, amount, verify from the PO if validity is in order. Language of Bank Guarantee

shall be as per Tender.

13.13.5 In case of any deficiencies, matter should be taken up with GM-CNS(P) / Project In-

charge who will in turn take up the matter with supplier.

13.13.6 Verify and confirm from the bank issuing the bank guarantee for its authenticity.

13.13.7 Monitor the date of installation and take action for extension of PBG if required. Action

for extension of PBG shall be initiated 60 days prior to expiry date of PBG.

13.13.8 Complete information from user department for satisfactory performance within

warranty period.

13.13.9 Return PBG to the supplier on request of project officer and also ensure that proper

approval is available before release of bank guarantee.

13.13.10A register shall be maintain wherein all the important information such as purchase

order no. and its date, PBG No. and its date, amount, validity, date of installation, date

of return is recorded. This register should be circulated on monthly basis for

information and comments of project officer.

13.13.11Most of the times contracts are signed against the lump-sum value towards the supply

of hardware, software, training, documentation, supply and installation etc. It

becomes difficult to ascertain the amount to be recovered from performance bank

guarantee towards the non-performance by the supplier. Non-performance shall be

ascertained keeping in view of the Performance of the system / equipment as a whole.

Matter shall be brought to the notice of GM(CNS) by site officer to resolve the issue

with the supplier before recommending recovery from performance bank guarantee.


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CHAPTER-14

14.1 Introduction

Once the installation of system or equipment is complete, next step is to properly test,

accept and commission the system. This is done to ensure that installed systems are

meeting the operational requirement and compiling with the Technical specification as

per tender condition so that equipment or system performs faultless functioning during

operational phase.

Even after the commissioning of the systems, it has to be ensured that the system is

being used for the purpose for which it has been procured and commissioned. This is

possible if the post installation audits are carried out and any shortcomings in the

system or in the procedures that become evident, are attended.

This Chapter deals with all issues involved in acceptance, commissioning and the

change management to provide guidance on each.

14.2 Site Acceptance Test

14.2.1 Normally, all the equipments and systems are tested at site after completion of

installation as per tender clause. Contactor completes the dry run in case of SITC

contracts and offer system for testing by AAI. It is the responsibility of supplier to

provide SAT test procedure atleast 30 days in advance prior to SAT schedule for

examination by AAI.

14.2.2 Test procedures submitted by contractor is required to be examined by a team of CNS

experts comprising of Project executing officer and Officers from operational/User

department . Team should study the test procedure in light of the FAT report and ensure

that all the deficiencies and observations made during FAT are being re-tested during

SAT.

14.2.3 If any additional test is required to be performed during SAT to ascertain system

reliability & to check the tender requirements then the same shall be conveyed to

contractor for inclusion in SAT procedures.

14.2.4 SAT schedule is to be mutually agreed between contractor and AAI. If there is any delay

in conducting SAT on AAI request then the same shall be recorded as this may have a LD

impact.

14.2.5 Nomination of Testing Team Members : A formal nomination of team

members for carrying out final testing has to be ensured well in advance. Team

should be comprising of project-Incharge and Executives from operational/user

department along with CNS Executives associated during installation of the

equipment/system.

ACCEPTANCE, COMMISSIONING AND POST IMPLEMENTATION AUDITS


83

14.2.6 Testing Procedure and Observation Formats : All the team members should be

fully aware of the testing procedure and what is expected out of them. Final testing

procedure submitted by the contractor should be studied and approved prior to the

commencement of the final testing.

14.2.7 Final Testing Report : After the completion of the final test, the nominated team

should submit a report with their observations. In case some discrepancies and

deviations have been found, the same should be brought out in the report.

14.2.8 Resolution of discrepancies/deviations : The Project coordinator should then

discuss the testing report with the contractor and draw a time bound plan to resolve the

discrepancies/deviations, and ensure that all issues are resolved as far as possible.

Minor/non-critical issues shall not stop the commissioning of system/equipment.

14.3 System stability and reliability test

14.3.1 To test the reliability and stability of the system , system shall run for a period of atleast

72 hours after completion of SAT. During this 72 hour test, there shall not be failure of

any critical sub-system. Such test shall be performed for all CNS equipments and

systems.

14.4 Safety Assessment Test

14.4.1 Safety Assessment Test shall be performed as per AAI Corporate Safety Manual.

14.4.2 Guidelines/instructions issued by DGCA shall be followed and completed prior to

requesting approval for commissioning of system from DGCA.

14.4.2 DGM (CNS-P) posted at regional hqrs shall coordinate the conduct of safety assessment

for the equipment/system and forward safety assessment report to Project coordinator

for onwards submission to DGCA.

14.5 Commissioning of the System

The system can then be commissioned but the following checks must be carried out

prior to this.

a. Training activity has been completed satisfactorily

b. Parallel trial run of the system, has been completed

c. There is No Critical pending issue unresolved with the contractor. Critical means

any issue that may have a serious operational impact.

d. All hardware and software items have been received and taken into record.

e. Complete documentation as per the order has been received.

f. Users have undergone training on the system and are comfortable in using the

system.


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g. Complete record of faults that might have surfaced during installation and testing of

the system is completed after resolving such faults.

h. Information regarding initial system configuration, user passwords, system

administration guide is completed and passed on to the maintenance team.

i. There is no critical work pending against the order and the project.

j. CAR compliance report in the prescribed Performa should be prepared and

submitted to DGCA for obtaining concurrence for commissioning of the

system.

k. The date of commissioning must be recorded with signatures of the Project

Mangers/Coordinators from AAI and the Contractor. All concerned Heads of the

department and the station must be made aware of the commissioning

l. If the system is not commissioned due to some reasons, ED (CNS) shall bring to the

notice of higher authorities about the hurdles and reasons for not commissioning

the system fortnightly.

14.6 Work Completion

14.6.1 Work completion certificate has to be taken from the Competent Authority as per the

provision in the D.O.P. Chapter 7.3 i.e. order completion certificate may be issued by GM

at the Region / Field level / CHQ (for works executed at CHQ level) Report of completion

certificate should be submitted to the next higher authority within 30 days of issuing

such certificate by presenting him all facts and figures of the project. The complete

documentation of the Project executed should be obtained from the Contractor as

detailed below:

a. Technical manual, User Manuals and System Administration Guide

b. Installation details including Cabling Diagrams

c. Record of faults and rectification details with Configuration Settings and

Administrator’s or Users’ Passwords for all equipment

d. Acceptance Testing Reports duly signed by the concerned.

e. All left out or spare installation material including keys of locks for Racks or any other

equipment

f. After completion of work, final payment shall be made within 10 days of issuing work

completion certificate.

g. Relevant activities as listed in para 14.5 has been completed related to work

completion.


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14.7 Capitalization of Assets

14.7.1 Furthermore, the capital assets created through the project should be finalized with

cost and capital asset record is updated with intimation to Department of Finance for

their record and accounting for Capital depreciation.

14.8 Inventory Record

14.8.1 After acceptance of equipment/system, inventory of all the items supplied, i n s ta l l ed

and commissioned need to be recorded in station inventory record.

14.9 Post Implementation Audit

14.9.1 Post implementation audits should be carried out by a team comprising of the users as

well as the representative of the CHQ. who implemented the project. The idea of

conducting the audit is not to find fault but to know the performance of the system. All

the issues must be resolved and difficulties faced by the users shall be overcome in a

systematic way.

14.9.2 Post implementation audit shall be performed within six months of commissioning of

system.

14.10 Record up-keeping : Proper record keeping is very important exercise for future

reference.

The following guidelines shall be followed for maintenance of file records.

14.10.1 Files containing in-principal approval, cost estimates, AA&ES, NIT /PQN/Tender

approval, Tender process correspondence till the award of contract shall be

maintained under Project name -Volume-I indicating proper file numbering.

14.10.2 After award of contract tender document along with all corrigendum’s and award letter

shall be binded and kept as a reference.

14.10.3 File containing correspondence related to the execution of work like kick off meeting,

minutes of progress review meeting, EOT, Testing etc. shall be maintained under

Project name-Volume II with proper filing number. All the files shall be properly

numbered.

14.10.4 Record of all the files under Vol-I and Vol-II shall be maintained in a file register

wherein entries related to different projects are being maintained.

14.10.5 ED (CNS)/GM (CNS) at Metro station shall ensure that the responsibility of record

maintenance shall be allotted to a officer of the rank of AM/Mgr. (CNS) Complete list

of all the closed files of any project shall be available with Executives responsible for

record keeping.


86

14.10.6 On transfer of Executive, a proper briefing report on the on-going projects shall be

prepared and handed over to Executives taking over charge from the transferred

officer. Outgoing Executive shall prepare proper written briefing on all the important

and current files including cases closed by him.

14.11 Performance Evaluation of Contractor Performance

14.11.1 For achieving quality in work and expeditious completion of work/supplies, it is

imperative that contractors for AAI Projects are chosen/selected with due care.

Contractors with proven track record should be encouraged and those with

unsatisfactory report be debarred or rejected at pre-qualification stage itself.

14.11.2 At the completion of work, a Performa prescribed in Appendix 14-B shall be filled and

kept as record for future reference.

14.11.3 Such records shall be used for blacklisting any contractor based on unsatisfactorily

performance repeatedly while carrying out more than one contract.

14.11.4 ED (CNS) shall prepare the case based on these records for blacklisting any contractor

to WAB.


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CHAPTER-15

15.1 Introduction

As it has been already given in the chapter-1 that CNS directorate is the key directorate

of the AAI which are responsible for planning, procurement, implementation, operation

and maintenance of various CNS, ATC system as per the details given in the 1.0 .

Similarly the department of CNS at RHQ level and field station level are also responsible

for fail safe operation of various CNS and ATM facilities, security equipments and

passenger facilities at various airports in the region.

As per the existing practice GM (CNS-Region) is responsible for operation and

maintenance of these facility provided at various field station in his region except at

metro airports wherein GM(CNS) of the particular Metro airport is responsible for

maintenance and operation of above facilities.

For maintenance and operation of various CNS, ATM passenger facilities, security

equipments etc, GM (CNS) is responsible for any procurement of LRU/spares and award

of various work/service contracts through various provision given in the DOP. In

addition to this, GM (CNS) has been also empowered to make purchases for the various

CNS capital items listed in Chapter 7.1 of DOP as per Chapter 8.0 of DOP.

15.2 Budgeting

15.2.1 The details of budgeting process has been already been given in Chapter-3 of this

manual which is to be followed more or less at RHQ level also. Since the capital fund

requirement for procurement of various CNS items are being allotted by CNS-P

directorate of CHQ based on the projection made in the CNS capital budget sent to CHQ

which is a regular yearly exercise which takes place in the month of August for BE of

next financial year(FY) and RE for current FY.

15.2.2 GM(CNS) of the particular region must take the annual requirement of various CNS

capital items for BE of next financial year including the requirement of metro airports

and must submit to the CNS-P CHQ to take into account in CHQ CNS capital budget

including any change in requirement of CNS capital fund for current FY in RE.

15.2.3 GM (CNS) of the region has also powers to allocate, from the consolidated fund

allocated by CHQ, the required fund to any station under his control for any

procurement deemed urgent and necessary even-though such requirement was not

previously projected.

15.2.4 Review of additional fund requirement shall be made by GM CNS/Region in December

every year based on the fund allocated, spent and balance and any additional

requirement can be projected to CHQ for fund allocation for procurements/works that

are likely to be completed by March next year.

PROCUREMENT AT RHQ / FIELD STATIONS


88

15.3 Cost Estimate

15.3.1 A very detail procedure for preparing estimated cost has been already elaborated i n

great details in chapter-4 of this manual. After the estimates are prepared, the

administrative approval and the expenditure sanction needs to be obtained from

Competent Authority for the work/service contract and the procurement of spares/LRU

and the various CNS capital items as per the financial power given in the DOP.

15.4 In principle approval and Technical Sanction

15.4.1 In principle approval shall be obtained from the Competent Authority for the repair and

maintenance of CNS equipment / procurement of spares at RHQ level defined in DOP

Chapter-9, Para 9.2 (i.e. sanction the work). In respect of the powers for technical

sanction and approval of notice inviting tender etc., the powers included in Chapter-8

would be applicable for works / services / procurements covered under Chapter-9.

15.5 Tender process/Quotation process

15.5.1 Detail guideline for open tender, limited tender, single tender and propriety purchase

has been already given in the previous chapters manual which shall be followed at RHQ

level also. At Regional Headquarter / Field Stations, procurements are required to be

made for low value items. Following guidelines are relevant for such purchases :

15.5.1 Cash / Imprest/ Spot / Immediate and Unforeseen Purchase

15.5.1.1 To reduce the ordering cost and meet urgent requirements, purchases upto the limit

indicated in Delegation of Powers Para 9.9 can be made by respective officers without

calling formal quotations etc. These can be made by market enquiries and purchase

orders can be raised on such enquiries. There should, however, be no deliberate

attempts to split the requirement so as to enable purchase through this process.

15.5.1.2 Cash down, over the counter purchases can also be made by maintenance divisions

for carrying out urgent repairs or to meet unforeseen important but minor

requirements of the stations to the extent indicated at para 9.9 of D.O.P. by the officers

competent to exercise such powers.

15.5.3 Award of Work through NIQ (without call of tenders)

15.5.3.1 Quotation is the process for awarding a work without call of tender which is required to

be carried out due to urgency in some special cases or where it is expected that less

number of bidders / suppliers will be available for the work / supplies under NIQ usual

formalities of tender like NIT, tender cost , EMD , contract agreement / mobilization

advance, arbitration etc. are not applicable. The financial limit per reference for such

purchases should not be more than Rs.5 lakhs as per para 9.6 (a) (i) of DOP and

applicable for CHQ also. The Performa for inviting NIQ is placed at Appendix 15.

15.5.3.2 The spirit behind the call of quotation to carry out urgent jobs (mainly of maintenance

in nature) to get competitive offer from at least three different agencies for purchase


89

of spares / LRU /repair work based on technical specifications of the items to be

purchased or scope of work to be done approved by Competent Authority as per DOP.

15.5.3.3 Such purchases have to be made from manufacturers /authorized dealers /

distributors / suppliers registered with AAI and other reputed firms.

15.5.3.4 A minimum of 3 sealed quotations must be obtained. Any deviation to this should have

approval of Competent Authority before opening the quotations.

15.5.4 Purchase through DGS&D / On DGS&D Rate Contract

15.5.4.1 Purchases can be made on DGS&D rate contract as per provision of DOP.

In case more than one party is approved by DGS & D for a particular item of stores, the

purchaser will make efforts to obtain rate quotations from all such parties to ensure

optimum benefit to the authority. In case , same rates are quoted by different

vendors, duly formed Technical committee by GM (CNS) shall evaluate the offered

product and best product shall be selected based on Technical specifications,

AMC/warranty support, past performance etc.

15.5.5 Purchase of Proprietary Items

For Single Tender System, where purchases are to be made from the sole

manufacturer or from the sole distributor / agent, the price list published by

manufacturers will be obtained and percentage of rebate to be allowed by the

manufacturer / distributor will be negotiated periodically. The maximum value of the

contract shall be as per limits defined in Delegation of Powers.

15.5.6 Purchase through Open vs Limited Tender

a) Purchases exceeding Rs.5.00 Lakhs shall be made by process of open tenders as per

guidelines for publishing open tender defined in Chapter 7 of para 7.2.

b) Where however, the purchases are of proprietary nature, and are made directly from

the manufacturers or from their sole selling agents (only in case where

manufacturer does not enter into supplier directly as per manufacturer’s policy), it is

not mandatory to go through open tender process.

c) Where the manufacturers are few and known, purchases can be made by resorting

to limited tenders where parties are directly approached instead of going through

the process of press advertisement. Permission of Competent Authority for avoiding

press advertisement and floating limited tender must be obtained as per relevant

clause of Delegation of Powers.

d) Limited tenders can also be floated where the parties are registered with AAI for

manufacture / supply of a particular item for a particular time period on the basis of

open Press Advertisement.


90

e) Limited tender enquiry shall be issued to firms of repute and competence. Queries

may be made to the parties whose credentials are verified with the help of pre-

qualification bids by the EDs at CHQ / RED / Airport Directors (GM Level). However,

in the absence of this process ED(CNS) or one step higher than tender accepting

authority shall be empowered to approve the list of parties for the limited tender.

15.6 Monitoring of Contract

15.6.1 Once the work/service contract has been awarded for the supply of the items by supplier

it needs to be monitored at appropriate level for fulfillment of the contract. Once the

spares/LRU have been received at the station/RHQ, a proper inventory in stock register

is to be maintained by the concerned station which can be produced to the audit team

as and when visit to the station.


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CHAPTER-16

16.1 Introduction

ANS Procurement Manual has been developed to provide guidance to all the CNS

Executives taking up the CNS works. It has also been issued to bring standardization

and transparency in the work process. This should also help in expediting the process

and thereby enhancing the budget performance standards.

16.2 Application

As brought out it applies to all authorities responsible to take up the CNS works. It

becomes applicable from the date of its issue, and shall remain applicable till

superseded by the next version or by a new document. This has to be read with any

corrigendum or amendment that might be issued from time to time. All guidance

material annexed with the document and D.O.P has to be read with amendments or

revisions by the .

16.3 Review

The document will be reviewed once a year and if required revised version will be issued

by Competent Authority.

16.4 Viability

ANS procurement Manual shall be available on the AAI website under “Manual

Downloads for AAI Employee”.

APPLICATION AND REVIEW OF THE CNS WORKS MANUAL

93

APPENDIX 1-A

Following are the possible methods of procurement. Open Tender, Limited Tender or Proprietary

Purchase or Purchase without call of tenders etc. could be adopted for the proposed

procurement. For the specific mode of execution or procurement, sufficient justification is to be

provided in the AA&ES as per the provisions of D.O.P.

• Global Tender* :

It is a process through which there is competition amongst suppliers & vendors in the

domestic and International market for supply of goods and services. The advertisement

for global open tender is to be published in designated news papers through Directorate

of Public Relation, AAI. Simultaneously, the notice of inviting global open tender is also

displayed on AAI’s websites in addition to sending copy of said notice to registered /

known supplier, displayed on AAI’s notice board and sending to embassies/High

Commissions of countries which are manufacturing/integrating equipment/systems

required for ensuring wide publicity. The copies of the tender notices may also be sent

to High Commissions/Embassies of India for arranging wide publicity.

• Open Tender* :

It is a process through which there is competition amongst suppliers/vendors in the

Domestic market for supply of goods and services. The advertisement for open tender is

to be published in designated news papers through Directorate of Public Relation, AAI.

Simultaneously, the notice of inviting open tender is also displayed on AAI’s websites in

addition to sending copy of said notice to registered / known supplier and displaying it

on AAI’s notice board.

Both in case of Open tender and Global tender, tenders are invited through

Notice Inviting Tender (NIT) or Pre-Qualification Notice for short listing the

bidders. In case of NIT, eligibility evaluation and technical evaluation are

done separately, whereas in case of PQN, only eligibility criteria is evaluated

as first step and then tenders are issued only to the short listed bidders.

• Single Tender :

This mode of procurement is used where only there is a single manufacturer of the item

or in proprietary cases. Since in the single tender case, there is no competition, price

negotiation is done before finalizing the tender.

• Negotiations Route Without call of Tender :

In a situation where the requirement is of an immediate nature and it is necessary to

ensure continued supplies from the existing vendors, appropriate authority may decide

to place orders (as per limit defined in Chapter 7.9 of DOP) of the quantities contained in

the running contract and at a rate negotiated with the existing vendors considering the

prevailing market conditions. Depending upon the total value of additional

MODE OF PROCUREMENT

94

procurement, the negotiation committee can be constituted with the approval of

Competent Authority. This route will however be resorted to in exceptional

circumstances.

• Limited tender Route :

There are certain specific provisions for calling the limited tender. The limited tender

option has to be exercised in specific circumstances. In some cases the equipment is

sophisticated and requires thorough technical screening, testing and prototype

approval by the concerned regulatory authorities to ensure that these equipments are

of sufficient quality level to be used in air traffic services. In such cases an open tender

may result in the participation of unknown bidders in open tenders, whose capability in

making such equipment is yet to be established. They may submit unrealistic bids which

may cause major difficulties in the tender evaluation process. In such cases, it would be

necessary to screen out such bidders so that Directorate of CNS Planning could interact

only with bidders (Original Equipment Manufacturers) who have intrinsic capability as

well as proven track record of supplying such sophisticated equipment. Where such

equipments are required, it would be worthwhile restricting Bids by issue of limited

tenders only to those parties who have proven expertise and past record in manufacture

and supply of such equipment. In such tenders it is essential that the reasons for limiting

the tenders to proven suppliers needs to be brought out in the NIT itself so that such an

action would stand justified. The issue of such limited tender should have the

concurrence of the head of the unit i.e ED (CNS).

• Expression of Interest Route :

In situations where Directorate of CNS proposes to induct new technology/

equipment/new service and the specifications of the new technology/equipment/new

service are not firmed up, Directorate of CNS may invite Expression of Interest (EOI)

from the available vendors of that technology/ equipment/new service. Based on the

offers received from the bidders who choose to participate in the EOI, the bidders

satisfying the terms of EOI will be short-listed. Before short listing the participants for

handing over the tender documents, Directorate of CNS may freely interact with them,

obtain clarifications and feedback on the delivery of similar equipment/services

elsewhere. The short listed bidders will be given the tender document containing

detailed technical, commercial and financial conditions. After evaluation by a

designated committee, the contract shall be awarded with the approval of competent

authority to the successful bidder(s) as per the terms and conditions stipulated in the

EOI and the technical, commercial and financial bid .

• Rate Contract :

A rate contract is an agreement between the purchaser and supplier to supply stores at

specified prices during the period covered by the contract. No quantities are mentioned

in the contract, nor any minimum drawal is guaranteed. The rate contract is in the

nature of a standing offer from a supplier and manufacturing firm. A legal contract

would come into existence with the placement of individual supply order and each

supply order will constitute a separate contract. The contractor is bound to execute any

95

supply order, which may be placed upon during the currency of the contract at the rates

specified therein. If a supply order is placed on the last date of the currency of the rate

contract, the same will remain alive for purpose of delivery of whole the stores ordered

during the currency of the rate contract until deliveries have been completed.

The rate contract is normally entered into for supply of those goods which are standard

types and are required on recurring basis e.g. Consumables like tape cartridges for

computer printers, CCTV, FIDS, UPS, Walkie-Talkie Sets with Base Station, EPABX & Test

Equipments etc.

• Procurement through AB-INITIO Negotiation :

In exceptional cases and in proprietary cases, the procurement through direct

negotiation with supplier without inviting tenders is initiated as per DOP.

• Through Inviting Quotation :

Quotation is the process for awarding a work without call of tender which is required to

be carried out due to urgency in some special cases or where it is expected that less

number of bidders / suppliers will be available for the work / supplies under NIQ usual

formalities of tender like NIT, tender cost , EMD , contract agreement / mobilization

advance, arbitration etc. are not applicable. The financial limit for reference for such

purchases should not be more than Rs.5 lakhs. The proforma for inviting NIQ is placed

at appendix 15.

The spirit behind the call of quotation to carry out urgent jobs (mainly of maintenance in

nature) to get competitive offer from at least three different agencies for purchase of

spares / LRU /repair work based on technical specifications of the items to be purchased

or scope of work to be done approved by competent authority as per DOP.

• Turn Key Project :

For upcoming green field Airports where CNS / ATM systems has to be implemented in

toto from scratch where a stringent time line is given for implementation, Competent

Authority shall adopt the route through a single Turn Key Contract that should include

supply, installation, testing and commissioning of all the facilities including its

associated civil and electrical works.

• Procurement of Equipment of new technology :

In case, the CNS- equipment to be procured is of complex in nature and the procuring

department may not possess the full knowledge of the various technical solutions

available in the market to meet the desired objectives of a transparent procurement that

ensures value for money spent simultaneously ensuring upgradation of technology and

capacity building.

In such procurement cases where technical specifications need to be iterated more than

once, it would be prudent to invite expression of interest and proceed to finalize

specifications based on technical discussions / presentations with the experienced

manufacturers / suppliers in a transparent manner. In such cases, two stage tendering

96

process may be useful and be preferred. During the first stage of tendering, acceptable

technical solutions can be evaluated after calling for the Expression of Interest (EOI)

from the leading experienced and knowledgeable manufacturers / suppliers in the field

of the proposed procurement. The broad objectives constraints etc. could be published

while calling for EOI. On receipt of the Expression of Interest, technical discussions /

presentations may be held with the short-listed manufacturers / suppliers, who are

prima facie considered technically and financially capable of supplying the material or

executing the proposed work. During these technical discussions the procurement

agency may also add those other stake holders in the discussions who could add value

to the decision making on the various technical aspects and evaluation criteria. Based

on the discussion / presentations so held, one or more acceptable technical solutions

could be decided upon laying down detailed technical specifications for each acceptable

technical solution, quality bench marks, warranty requirements, delivery milestones

etc., in a manner that is consistent with the objectives of the transparent procurement.

At the same time care should be taken to make the specifications generic in nature so as

to provide equitable opportunities to the prospective bidders. Proper record of

discussions / presentations and the process of decision making should be kept .

Once the technical specifications and evaluation criteria are finalized , the second stage

of tendering could consist of calling for techno commercial bids as per the usual

tendering system under single bid or two bid system, as per the requirement of each

case. Final selection at this stage would depend upon the quoted financial bids and the

evaluation matrix decided upon.

97

APPENDIX 1-B

1) Communication Equipments :

Radio-Links, SAT-COM, RCAG, Voting Unit, HF/VHF Radio Telephony Txs / Rxs, Data

Links, AMSS, ATN (AHMS), Tape Recorder, EPBAX etc., D-Volmet, DATIS, VCCS

2) Navigation Equipments :

NDB, DVOR, DME (HP), ILS, and DME (LP), GAGAN, GBAS

3) Surveillance Equipments :

ASR, ARSR, MSSR, ADS - B,ADS / CPDLC, ASMGCS and Sub-Systems, Wide Area

Multilateration System, ATFM, etc.

4) Security Equipments :

HHMD, DFMD, ETD (Explosive trace detector) and X-bis Machines (both for hand

baggage and for registered baggage), In-Line XBIS machine, XBIS Machine Cargo

model.

5) Ancillary Equipments :

Electronic ancillaries like UPS, Test Equipments, CCTV, Control room display system,

FIDS, PIDS, PA Systems, miscellaneous office equipments.

6) ATC Automation equipment :

ATC Automation systems and its sub-system

LIST OF CNS EQUIPMENTS, SYSTEMS AND ASSOCIATED SUPPORT FACILITIES

98

APPENDIX 2-A

Sr. No. Name of equipment/facility Tentative life span

1. VHF Tx. / RX, HF TX / RX 12 Years

2. Voice Communication Switch 8 Years

3. TAPE RECORDER 10 Years

4. AUTOMATIC MESSAGE SWITCHING SYSTEM/ AMHS 8 Years

5. AUTOMATIC TERMINAL INFORMATION SYSTEM 12 Years

6. ILS 12 Years

7. VOR 12 Years

8. DME 12 Years

9. AIRPORT SURVELLIANCE RADAR 12 Years

10. M.S.S.R. 12 Years

11. AIR ROUTE SURVELLIANCE RADAR 12 Years

12. ASMGCS 10 Years

13. NON DIRECTIONAL BEACON 12 Years

14. ATS AUTOMATION 12 Years

15. FIDS/LCD Boards/LCD Displays 7 Years

16. CCTV Control Equipments 7 Years

17. CCTV Cameras 5 Years

18. UPS 5 Years

19. UPS BATTERIES 2 Years for 12V and

above & 1 year for

below 12V.

20. EPABX 06 Years

21. Testing equipment for Electronic equipment 05 Years

22. Laser Printer/Scanner/Inkjet Printer/Dot Matrix Printer 05 Years

LIFE SPAN OF CNS EQUIPMENTS

1. Availability of spare and equivalent 7. Portability of Software on new

components OS/Hardware

2. Repair support from OEM or 8. Requirement of enhanced capabilities

CMC/SMU and features as per operational

requirements3. Performance of the equipments

9. Economical Feasibility of up gradation 4. Obsolescence / refurbishment

5. Induction of new Technology10. Trained in house manpower

6. Reliability of systemavailability

# Life span of computer based system can be ascertained depending upon following factors :

99

APPENDIX 2-B

Sr. Name of Year of Year of Life span as Brief

No. equipment / Installation Commissioning defined in Reasons

facility/ and Name /Number of Appendix 2A for

Make or of station years in of ANS replacement

Model operation procurement

manual

1

2

n.

• If possible, please indicate history of past repair

• Cost of the equipment at the time of purchase

PERFORMA FOR OBTAINING IN-PRINCIPLE APPROVAL FOR REPLACING OLD EQUIPMENTS

100

APPENDIX 2-C

Sr. Name of Year of Number of Recommended Brief Reasons

No. equipment / Installation station life span of for

facility of where equipment procurement

equipment same make as per like failure

of facility is Appendix 2A rate,

operational of ANS availability

procurement of spares,

manual Obsolence

threat etc.

1

2

• Warranty expiry date

• AMC with supplier , if any.

• Repair facility, if available.

PERFORMA FOR OBTAINING IN-PRINCIPLE APPROVAL FOR PROCURING SPARES

101

APPENDIX 2-D

1. Name of equipment/facility :

2. Year of Installation of equipment with brief background:

3. Number of station where same make of facility is operational:

4. Reasons for non- creation of SMUs :

5. Efforts made to impart training to AAI officers

6. Cost of equipment/system as per purchase order

7. Estimated cost of AMC :

8. Recommendations of GM (CNS)

9. Recommendations of ED (CNS)

In-Principle Approval accorded

Member (ANS)

(Signature)

PERFORMA FOR OBTAINING IN-PRINCIPLE APPROVAL FOR AMC/REPAIR SUPPORT

102

APPENDIX-3-A

BUDGET FORMAT

AIRPORTS AUTHORITY OF INDIA

A - 3 (NEW SCHEMES) 2010-11

(Rs. in crores)

Sl. Particulars Commencement Estimated Annual Plan

No. Year Cost 2011-12

1 2 3 4 5

COMMUNICATION

NAV – AIDS

AUTOMATION SYSTEM

ELECTRONIC SECURITY EQUIPMENTS

SURVELLIANCE EQUIPMENTS

ANCILLARY EQUIPMENTS

W.P.C. LICENSING

TRAINING etc

A CHQ SCHEME ( costing more than 5 crores) Sub Total A

B RHQ SCHEME (Less than 5 crores) Sub Total B (Details of

Airport-wise and scheme-wise to be given separately)

GRAND TOTAL (A + B )

103

APPENDIX 3-B

It is appropriate to issue a formal Re-appropriation order in the format enclosed, after

the availability of the re-appropriation approval from the competent authority on file.

The order should clearly indicate the budget type like Revenue Budget or Capital

Budget, Authority agreeing to spare the funds, the scheme from where funds have been

re-appropriated, amount of re-appropriation, financial concurring authority with diary

details, and scheme for which the funds have been re-appropriated.

Copy of this order should be endorsed to the authority who is giving money from its

scheme, and the Financial Authority who accorded the concurrence. (Refer next

page).

RE-APPROPRIATION ORDER

104

Airports Authority of India

Directorate of CNS-Planning

Ref No…………………….. Date:……………………

Subject : …………………………………………………………………………………………

1. The approval for re-appropriation by the ……...……………., Airports Authority of India is

hereby conveyed for an amount of Rs. .................. (Rupees ……………..………………..)

for the above-mentioned work as per the following details.

a. The re-appropriation is from the Scheme ……......…….. in the Expenditure Budget BE

20xx-yy under ………………… Schemes.

b. The re-appropriation is to the CNS-Planning Scheme ……………....……….. in the

Expenditure Budget BE 20xx-yy.

2. This issue with the concurrence of ……………………..vide Dy. No. ……………….

Dated…………….

(……………………………)

Distribution :

1. (Approving authority ……………………….) vide his consent in the file Dy.........No…………..

Dated…………..

2. ………………..(Finance)

RE-APPROPRIATION SANCTION

105

APPENDIX 3-B1

(Expenditure to be monitored on Monthly basis and all figures can be as on the last day

of the month).

EXPENDITURE DETAILS AGAINST RE-APPROPRIATION

S. Re- Project Total Amount Amount Balance

No. appropriation Cost of Re- Booked for

Reference the appropriated Column

No. and Date Project 5

1. 2. 3. 4. 5. 6. 7.

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APPENDIX 4-A

Format for issue of Administrative Approval and Expenditure Sanction (AA & ES) is enclosed for

issue after receipt of Administrative Approval and Expenditure Sanction on file from the

competent authority against the estimate of expenditure submitted with full detail of the budget

provisions and budget bookings.

First page of the AA & ES indicates the total amount and the authority who accorded the

approval, Scheme under which it has been accorded, financial concurring authority with its

diary detail, and who will carry out the work


DIRECTORATE OF CNS PLANNING

Ref No. Date:

Subject (Name of Work / Project)

1. The administrative approval and expenditure sanction of (Designation of competent

Authority ……………………..), Airports Authority of India is hereby conveyed for an

amount of Rs…………….. (Rupees ………………………………… only) for the above-

mentioned work as per details given in Annexure-I.

2. The expenditure shall be debitable to ……………………… under CNS-Planning Budget.

3. The work shall be carried out by ……………………………………. .

4. This is issued with the concurrence of (Designation of Officer from F&A

………………………..) vide Dy. No. …………… dated …………….

(……………………..)

Designation: ……………………..

Encl: as above

Distribution:

1. PS to Chairman/Member (ANS)/Member (Finance)……………………

2. ED (Fin.)/ED (CNS-OM)/ED (CNS-P)/Project coordinator

AA & ES FORMAT

ADMINISTRATIVE APPROVAL & EXPENDITURE SANCTION

107

APPENDIX 5-A

Technical Sanction Proposal, to obtain Technical Sanction for the Project, has to be completed

carefully. The Format contained here includes all the detail that should be given in the document

while proposing for Technical Sanction from the competent authority.


DIRECTORATE OF CNS PLANNING

Technical Sanction Proposal for (Name of Project)

TS No. AAI/CNS-(P)/TS-xx/20xx-yy Date: dd.mm.yyyy

File No. AAI/CNS-(P)/---/------ -----

Sub: Technical Sanction for (Name of Project)

1. Back Ground of the Project

2. Objective of the Project

3. Scope of Work for the Project

4. Project cost (itemized details of financial implication)

5. Method of Execution

6. Time frame of the project

The following time frames shall be observed for the project.

Sr. No. Activity Time Schedule

1. NIT Approval & Call of tenders

2. Press Notice

3. Opening of Technical Bids

4. Processing of Technical Bids &

Acceptance of Technical Report

5. Opening of Financial Bids

TECHNICAL SANCTION PROPOSAL FORMAT

108

6. Processing of Financial Bids

7. Financial Concurrence

8. Acceptance & Placement of Order

9. Supplies

10. Installation

11. Training

12. Acceptance Testing & commisioing

Note : Part of activity 9, 10 & 11could be concurrent.

Total Time for Completion of the Project : --- Weeks from AA & ES.

7. Critical Dependencies

Date of AA & ES

1. ...................................................

2. ...................................................

8. Accord for TS

The total amount for the TS is Rs...................../- only and as per DOP clause

............................. is competent for accord of TS up to an amount of ..........................

9. Budget Provisions

The expenditure of Rs. ......................../- will be booked under commitment budget

of Rs. ..................... for BE 200X-0Y.

(...............................)

Designation :..............................

Dated: ..................

Enclosures :

Annexure I : .........................

109

APPENDIX 5 B-1/B-2/C-1/C-2

1. Notice Inviting Tender (NIT) is in two formats – one for publishing in News Papers

(Appendix-B-1) and the other is for uploading on the Website (Appendix-B-2).

2. Pre-qualification Notice (PQN) is in two formats – one for publishing in News Papers

(Appendix-C-1) and the other is for uploading on the Website (Appendix-C-2).

3. News Paper NIT & PQN gives details of the tender in brief and giving reference to the

Website for full detail. Two tenders can be combined in the News Paper NIT /

PQN.

4. Website NIT gives greater detail and includes the downloadable application form for

purchase of the Tender Document. NIT and PQN should be uploaded separately

for each tender. In case of NIT, complete tender document should be

uploaded along with the notice, whereas, in case of PQN, scope of work

should be uploaded along with the notice.

NIT/PQN FORMAT

110

APPENDIX 5 B-1


Notice Inviting Tender

Tenders are invited by Executive Director (CNS-Planning) on behalf of Chairman,

Airports Authority of India (AAI) for the works listed in the table given below, from

Original Equipment Manufacturers or their authorized representatives or System

Integrators:

S.No. Tender No. Name of Work Estimated cost Qty.

1. (CNS-P)-xx/ {Name of the

20xx-yy Project)

Last date of submission of tender ……..

For other details please visit our Website www.airportsindia.org.in /

www.aai.aero/ https://etender.aai.aero/irj/portal

Executive Director, (CNS-Planning)

Note : For global Tenders vide publicity shall be given by publishing in few

major foreign newspapers and sending the same to foreign embassies.

FORMAT FOR NIT FOR PUBLISHING IN THE NEWS PAPERS

111

APPENDIX 5 B-2

TENDER NO. (CNS-P)-xx/20xx-yy

Tenders are invited by Executive Director (CNS-Planning) on behalf of Chairman, AAI

from the eligible bidders for the works as detailed below.

1. Details of works : {Name of Project}

2. Estimated Cost :

3. Earnest Money Deposit (EMD) :

4. Eligibility Criteria :

4.1 The bidder should be Original Equipment Manufacturer (OEM) or its authorized

representative or System Integrator.

4.1.1 In the case of System Integrator or authorized representative of OEM, credentials

(financial turnover & experience as mentioned below) of bidder only will be considered

for evaluating eligibility criteria.

4.1.2 In case of authorized representative, current authorization from OEM authorizing the

bidder as its authorized representative shall be submitted.

4.1.3 In case of OEM, Proof of being Original Equipment Manufacturer (OEM) shall be

submitted

4.1.4 In case of SI, authorization of OEM(s) firm for their product(s) for the current tender

shall be submitted.

4.1.5 Bidder shall obtain certificate from OEM/undertaking from the respective OEM(s) to

ensure availability of spares component for entire life of the item (estimated to be 10

years)

4.1.6 Bidder firm shall submit an undertaking stating its firm or its partners or its Directors

have not been black listed or any case is pending or any complaint regarding

irregularities is pending, in India or abroad, by any global international body like

World Bank/International Monetary Fund/ World health Organization etc.., or any

Indian State/Central Governments Departments or Public Sector Undertaking of

India.

4.1.7 System Integrator firm is one who sources sub-systems from one or more OEM(s) firms

and integrates the same with its own manufacturing/ developing subsystem(s), to

supply fully functional system as per prescribed specifications. Current Authorization of

OEM firm authorizing the bidder firm for its product(s), spare, sales and service shall be

presented by the bidder firm.

4.2 Annualized average financial turnover : Bidder should have annualized average

financial turnover of at least {Figure = 30% of the estimated cost} during last

NOTICE INVITING TENDER (AAI WEBSITE)

112

three financial years, ending 31st March or 31st December of previous year, as per

practice prevailing in the country of the bidder. As a proof of financial turnover, copy of

abridged Balance Sheet along with Profit & Loss account of the

4.3 Experience :

4.3.1 The bidder should have successfully executed in last seven years, orders for supply &

installation of {give name of equipment/item under procurement} meeting any one of

the following six criteria.

a1. One order of value more than or equivalent to {Figure = 80% of the estimated

cost}

a2. Two orders each of value more than or equivalent to {Figure = 50% of the

estimated cost}

a3. Three orders each of value more than or equivalent to {Figure = 40% of the

estimated cost}

a4. One order consisting of minimum {Figure = 80% of the quantity under

procurement in the tender}

a5. Two separate orders each consisting of minimum {Figure = 50% of the quantity

under procurement in the tender}.

a6. Three separate orders each consisting of minimum {Figure = 40% of the quantity

under procurement in the tender}

4.4 Performance/Experience Certificate :

4.4.1 Bidder must submit performance/experience certificate in respect of the works claimed

against experience as mentioned under Para 4.3. These certificates should be issued by

the end user agencies for whom the works have been carried out and endorsed by the

bidder. Such performance /experience certificates should clearly indicate the following:

i. Value of order or contract,

ii. Scope of order or contract,

iii. Order or Contract No., Award date

iv. Order or Contract Completion date.

v. That the supplied & installed systems have performed satisfactorily after

commissioning.

4.4.2 The scope of works in respect of works claimed against Para 4.3 above, should be

substantiated by submission of appropriate documentation such as relevant portion of

the contract.

bidder for last three

years should be submitted.

113

4.5 The bidder (in case of Indian bidder only and foreign registered firms having permanent

establishment (PE) ) should have valid PAN/VAT/Sales Tax/Service Tax registration.

4.6 Overseas bidder shall provide the Permanent Account Number within 30 days after

award of contract.

4.7 Date of publishing of NIT in press will be taken as reference for assessing the eligibility

criteria.

4.8 The tender for the offered system cannot be submitted both by the OEM and its

authorized representative. In such case, the application of OEM alone will be considered

and the tender of the authorized representative will be rejected.

4.9 The bidder as authorized representative can participate on behalf of only one OEM.

4.10 No bidder firm or its subsidiary firm or its parent firm shall be allowed to submit alternate

bids. Such bids shall be summarily rejected. Bidder firm shall submit an undertaking

stating the same.

4.11 The bidder firm shall posses the required tools, plants, skilled manpower, etc. required

for execution of the subject scope of work in the tender.

4.12 Any firm who wishes to sublet or outsource to any third party then it shall bring to notice

of AAI in submittals to this bid itself. AAI may or may not agree or accept such intentions

/ proposals of out sourcing or subletting of scope of work in the tender.

4.13 Bidder firm shall also submit an undertaking that if any portion of the work is outsourced

or subcontracted then it shall accept all AAI objections within the scope of work or shall

change/ replace subcontractor if required by AAI and shall undertake work itself without

any compensation

4.14 An agent of the foreign firms can purchase tender document on behalf of their

Principal/OEM/System Integrator, on submission of authorization certificate. However,

tender document shall be signed only by the Principal/OEM/System Integrator & not by

the agent.

4.15 Foreign Firms shall enclose all details of their Indian agents/Firms/Representatives

5. Concessions to the bidders registered with NSIC, shall be applicable as per the

directives of Govt. of India.

6. Purchase preference to Central Public Sector Undertaking shall be applicable as per the

directives of Govt. of India prevalent on the date of acceptance.

7. The tender fee will be Rs. [............/-] (Rupees .................................... only). The

tender fee is non-refundable. Tender processing fee shall be paid to AAI, on-line after

registration. Bidders shall be allowed to register, login to AAI’s e-Procurement portal and

down load tender document, free of cost. However bidders shall be allowed to submit

their tender, both Technical & Financial bids only after paying Tender Processing Fee on-

line.

114

8. Each tender shall accompany the earnest money deposit, in the form of

a) Demand Draft /Pay Order in INR,………… or USD …….in favour of “Airports

Authority of India” payable at New Delhi from a Nationalized / Scheduled bank.

OR

b) “EMD Bank Guarantee” from a Nationalized/Scheduled Bank (as per RBI

Schedule) having office in India, in the prescribed Performa as per Annexure___.

c) Authorized Partners/agents/representatives in India of foreign bidder firm can also

submit EMD in Indian Rupees / US Dollars on behalf of their Foreign Principal

bidders.

9. Tenders not accompanied by the requisite EMD and Tender Fee shall be summarily

rejected. EMD shall be submitted in person to the office of Executive Director (CNS-P),

R.G. Bhawan, New Delhi-110003. Scanned copy of performance Bank Guarantee or

Demand Draft towards EMD shall be uploaded along with “PQQ” documents.

10. EMD Bank Guarantee :

a. EMD Bank Guarantee shall be valid for a period of six months from the notified date

of opening of the tender without any conditions by the bidder. In case of any

extension of tender opening date, bidder shall arrange to extend validity of such

EMD Bank Guarantee, suitably, within two weeks.

b. Bidder shall provide name, designation, address, Fax & phone of the bank issuing BG

for confirmation purpose.

c. Bidder firm shall not change or alter or modify, in any way, the language /contents of

Annexure V (Performa for submitting Eligibility requirements and Undertaking) &

Annexure VI (EMD Bank Guarantee).

d. Any bid submitted with changed or altered or modified language /contents of the

said Annexure IV & V then the Bid of the firm may be liable to be rejected.

e. No interest or any other expenses, whatsoever, shall be payable by AAI on the EMD

in any manner.

f. Generally EMD in form of DD/Pay order in USD shall be en-cashed by AAI after

converting it in to equivalent INR at the conversion rate applicable on the date of

encashing the EMD.

g. AAI is liable to return EMD amount in INR or in USD or in currency equivalent to

amount submitted by bidders. h. All bank/conversion charges shall be to bidder’s

account.

i. Bidders shall provide to AAI requisite Bank Account details for return of EMD.

j. The EMD of the unsuccessful bidder shall be returned, on award of contract to

successful bidder and EMD of bidder who are not qualified in initial eligibility

requirement or Technical qualification, EMD shall be refunded after Pre-qualification

/ Technical evaluation.

k. If any successful shortlisted bidder, due any unsatisfactory reason in view of AAI,

does not want to further participate in the tender then EMD in any form of such

bidders shall be encashed and forfeited.

115

l. If due some reason AAI cancels this tender then EMD of all bidders without any

interest shall be returned back.

11. Tender documents can be obtained from the O/o Executive Director (CNS-Planning)

between 1000 hrs. to 1700 hrs. (Except 1300 hrs. to 1400 hrs.) on all working

days w.e.f .................................. upto .................................. on submission of

application, in the prescribed Proforma (Annexure-V) along with the non refundable

tender fee through a demand draft from a Nationalized /Scheduled bank drawn in

favour of “Airports Authority of India” payable at New Delhi”.

OR

Tender documents can be down loaded from Airports Authority of India Website

www.airportsindia.org.in / www.aai.aero. Duly complete down loaded tender

documents can be submitted along with the non refundable tender fee through a

demand draft from a Nationalized /Scheduled bank drawn in favour of “Airports

Authority of India” payable at New Delhi”.

12. Any amendment or corrigendum to the tender document will be posted on AAI

website. Those bidders, who purchase the tender document by paying the tender

fee, will be intimated of any amendment/corrigendum by fax, by email or by post.

For the bidders, submitting bids on downloaded tender document, it is bidders’

responsibility to check for any amendment/corrigendum on the AAI website or

check for the same from the tender issuing authority before submitting their duly

completed bids.

13. Tender document properly sealed and complete in all respects should reach by

registered post or by person at the address mentioned in the tender document, latest by

……………………. up to 1430 Hours.

14. Tenders (Envelope A) will be opened on ............................ at 1500 Hrs. in

presence of bidders or their agents in the O/O Executive Director (CNS-Planning),

AAI, Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi – 110 003 by duly

constituted committee.

15. Address for Correspondence : Applications and enquiries regarding clarification/

interpretation in connection with this pre-qualification notice should be addressed to:

Executive Director (CNS-Planning)

Airports Authority of India,

Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi - 110 003.

Fax: +91-11-24611134 E-mail: [email protected]

16. AAI reserves the right to accept or reject any or all applications without assigning any

reasons. AAI reserves the right to call off process of short-listing of bidders at any

stage without assigning any reason.

17. AAI shall not be responsible for delay/loss/non-receipt of application/tender document

sent by post or if bidder fails to upload tender in time.


116

APPENDIX 5 C-1


Pre-qualification Notice

Applications are invited by Executive Director,(CNS-Planning) on behalf of Chairman,

Airports Authority of India (AAI) for short listing of eligible bidders, for the works listed in

the table given below, from Original Equipment Manufacturers or their authorized

representatives or System Integrators:

S.No. Tender No. Name of Work Qty. Estimated Last date

Cost of

submission

1. (CNS-P)-xx/ {Name of the

20xx-yy Project)

For eligibility criteria, submission and other details please visit our

W e b s i t e w w w . a i r p o r t s i n d i a . o r g . i n / w w w . a a i . a e r o /

https://etender.aai.aero/irj/portal or contact at office address; Directorate of

CNS-Planning, Airports Authority of India, Rajiv Gandhi Bhawan, Safdarjung Airport,

New Delhi – 110 003.


FORMAT FOR PQN FOR PUBLISHING IN THE NEWS PAPERS

117

APPENDIX 5 C-2





2. Estimated Cost :


4. * Earnest Money Deposit : If approved by PQN approving authority

(Standard Clauses related to EMD requirement shall be part of PQN)

5. The bidder should be Original Equipment Manufacturer (OEM) or its authorized


5.1 In the case of System Integrator or authorized representative of OEM, credentials



5.2 In case of authorized representative, current authorization from OEM authorizing the

bidder as its authorized representative shall be submitted.

5.3 In case of OEM, Proof of being Original Equipment Manufacturer (OEM) shall be

submitted

5.4 In case of SI, authorization of OEM(s) firm for their product(s) for the current tender

shall be submitted.

5.5 Bidder shall obtain certificate from OEM/undertaking from the respective OEM(s) to

ensure availability of spares componenet for entire life of the item (estimated to be 10

years)

5.6 Bidder firm shall submit an undertaking stating its firm or its partners or its Directors

have not been black listed or any case is pending or any complaint regarding

irregularities is pending, in India or abroad, by any global international body like World

Bank/International Monetary Fund/ World health Organisation etc.., or any Indian

State/Central Governments Departments or Public Sector Undertaking of India.

5.7 System Integrator firm is one who sources sub-systems from one or more OEM(s) firms

and integrates the same with its own manufacturing/ developing subsystem(s), to






stating the same.

TENDER PREQUALIFICATION NOTICE (PQN) (AAI WEBSITE)

118


for execution of the subject scope of work in the tender. Bidder firm shall submit an

undertaking stating that no part of the scope of work shall be sublet or outsourced to

any third party without written consent from AAI.







any compensation.




the agent.

5.13 Foreign Firms shall enclose all details of their Indian agents / Firms / Representatives

6. Annualized average financial turnover : Bidder should have annualized average

financial turnover of at least {Figure = 30% of the estimated cost} or equivalent

during last three financial years, ending 31st March or 31st December of previous year,

as per practice prevailing in the country of the bidder. As a proof of financial turnover,

copy of abridged Balance Sheet along with Profit & Loss account of the bidder for last

three years should be submitted.

7. Experience :

7.1 The bidder should have successfully executed in last seven years, orders for supply &

installation of {give name of equipment/item under procurement} meeting any

one of the following six criteria.


cost}


estimated cost}


estimated cost}



a5. Two separate orders each consisting of minimum {Figure = 50% of the

quantity under procurement in the tender}.

a6. Three separate orders each consisting of minimum {Figure = 40% of the

quantity under procurement in the tender}

119

8. {Qualify the equipment/item under procurement for which eligibility criteria as

mentioned in 6.0 is referred. }

9. Performance/Experience Certificate:

9.1 Bidder must submit performance/experience certificate in respect of the works

claimed against experience as mentioned under Para 7.1. These certificates should

be issued by the end user agencies for whom the works have been carried out and

endorsed by the bidder. Such performance/experience certificates should clearly

indicate the following:

a) Value of order or contract,

b) Scope of order or contract,

c) Order or Contract No., Award date

d) Order or Contract Completion date.

e) That the supplied & installed systems have performed satisfactorily after

commissioning.

f) The scope of works in respect of works claimed against Para 7.1 above, should be

substantiated by submission of appropriate documentation such as relevant

portion of the contract.

10. The bidder (in case of Indian bidder only and foreign registered firms having permanent


11. Overseas bidder shall provide the Permanent Account Number within 30 days after

award of contract 12. Date of publishing of NIT in press will be taken as reference for

assessing the eligibility criteria.

13. The tender for the offered system cannot be submitted both by the OEM and its



14. The bidder as authorized representative can participate on behalf of only one OEM.

15. An agent of the foreign firms can purchase tender document on behalf of their



the agent.

16. Foreign Firms shall enclose all details of their Indian agents/Firms/Representatives

17. Concessions to the bidders registered with NSIC, shall be applicable as per the directives

of Govt. of India.

18. Purchase preference to Central Public Sector Undertaking shall be applicable as per the


120

19. The tender fee will be Rs. [......................./-] (Rupees ................................... only).

The tender fee is non-refundable.

* In case, it has been decided that EMD has to be deposited in PQN process

and approved by tender approving authority then clause No.20 shall be

added after editing as per PQN requirement.

20. Each tender shall accompany the earnest money deposit, in the form of

a) Demand Draft /Pay Order in INR, ........... or USD ................ in favour of

“Airports Authority of India” payable at New Delhi from a Nationalized /

Scheduled bank.

OR





bidders.

20.1 Tenders not accompanied by the requisite EMD and Tender Fee shall be summarily

rejected. EMD shall be submitted in person to the office of Executive Director

(CNS-P), R.G. Bhawan, New Delhi-110003. Scanned copy of performance Bank

Guarantee or Demand Draft towards EMD shall be uploaded along with “PQQ”

documents.

20.2 EMD Bank Guarantee :





b. Bidder shall provide name, designation, address, Fax & phone of the bank issuing

BG for confirmation purpose.

c. Bidder firm shall not change or alter or modify, in any way, the language /contents

of Annexure V (Performa for submitting Eligibility requirements and Undertaking)

& Annexure VI (EMD Bank Guarantee).




in any manner.



encashing the EMD.

121


amount submitted by bidders.

h. All bank/conversion charges shall be to bidder’s account.




requirement or Technical qualification, EMD shall be refunded after Pre-

qualification/Technical evaluation.







between 1000 hrs. to 1700 hrs. (Except 1300 hrs. to 1400 hrs.) on all working days w.e.f

…………….......………… upto ………………….........…….. on submission of application, in

the prescribed Proforma (Annexure-V) along with the non refundable tender fee

through a demand draft from a Nationalized /Scheduled bank drawn in favour of

“Airports Authority of India” payable at New Delhi”

OR

22. Tender documents can be down loaded from Airports Authority of India Website





23. Any amendment or corrigendum to the tender document will be posted on AAI

website. Those bidders, who purchase the tender document by paying the tender

fee, will be intimated of any amendment/corrigendum by fax, by email or by post.

For the bidders, submitting bids on downloaded tender document, it is bidders’

responsibility to check for any amendment/corrigendum on the AAI website or

check for the same from the tender issuing authority before submitting their duly

completed bids.



……………………. up to 1430 Hours.

25. Tenders (Envelope A) will be opened on …………………….. at 1500 Hrs. in presence of

bidders or their agents in the O/O Executive Director (CNS-Planning), AAI, Rajiv Gandhi

Bhawan, Safdarjung Airport, New Delhi – 110 003 by duly constituted committee.

122

26. Address for Correspondence : Applications and enquiries regarding

clarification/ interpretation in connection with this pre-qualification notice

should be addressed to:



Rajiv Gandhi Bhawan, Safdarjung Airport,

New Delhi - 110 003.

Fax: +91-11-24611134

E-mail: [email protected]






29. Only short listed bidder shall be allowed to participate in the tender. Short listed

bidders may be issued tender document on submission of non refundable tender fee

of Rs. {designated tender fee} at through a demand draft from a Nationalized

/Scheduled bank drawn in favour of “Airports Authority of India” payable at New

Delhi”.

Note : In case, it is decided by tender approving authority to incorporate

details of tendering procedures, payment terms, integrity pact etc. to be

incorporated in pre-qualification notice then suitable clauses shall be

added giving details of tendering procedures, payment terms, scope of

work, technical literature requirement, integrity pact etc.


BRIEF SCOPE OF WORK FOR {give name of project}

123

APPENDIX 5-D

Tender Fees: Rs. [________]

RAJIV GANDHI BHAWAN,

SAFDARJUNG AIRPORT, NEW DELHI – 110 003.

TENDER DOCUMENT

For

[Name of the Project]

Tender No: (CNS-P)-xx/20xx-yy

Issued To (Name and Address of Bidder) : ............................................................

Date of Issue : ............................................................

Issued By : ............................................................

For Executive Director (CNS-Planning)

AAI CHQ, RGB, SAP, New Delhi – 3

SAMPLE TENDER DOCUMENT (NIT)


124

(This document must be submitted along with the Envelope B duly signed on each

page as a proof of reading along with all corrigendum)

S.No. ITEM Page No.

1. Notice Inviting Tender (Press)

2. Notice Inviting Tender (AAI Website)

3. General Information & Guidelines (Section - A)

4. Terms & Conditions (Section – B)

5. Operational & Technical Requirements (Section – C)

6. Price Schedule (Annexure – I and 1A)

7. Instructions to fill Annexure 1& 1A – Annexure-1-C

8. Comprehensive List of spares (Annexure – 2 A, 2B & 2C)

9. Consignee Details (Annexure – III)

10. Proforma for Performance Bank Guarantee (Annexure-IV)

11. Format for submission of “Eligibility Requirements

and Undertaking” (Annexure–V)

12. Proforma for EMD- Bank Guarantee (Annexure-VI)

13. Proforma for Integrity Pact (Annexure-VII)

14. Drawing if any

CONTENTS

125

NOTICE INVITING TENDER (PRESS)





2. Estimated Cost :

3. Earnest Money Deposit (EMD) :


4.1 The bidder should be Original Equipment Manufacturer (OEM) or its authorized


4.2. In the case of System Integrator or authorized representative of OEM, credentials



4.3 In case of authorized representative, current authorization from OEM authorizing the

bidder as its authorized representative shall be submitted

4.4 In case of OEM, Proof of being Original Equipment Manufacturer (OEM) shall be

submitted

4.5 In case of SI, authorization of OEM(s) firm for their product(s) for the current tender shall

be submitted.

4.6 Bidder shall obtain certificate from OEM/undertaking from the respective OEM(s) to

ensure availability of spares component for entire life of the item (estimated to be 10

years)

4.7 Bidder firm shall submit an undertaking stating its firm or its partners or its Directors have

not been black listed or any case is pending or any complaint regarding irregularities is

pending, in India or abroad, by any global international body like World

Bank/International Monetary Fund/ World health Organization etc.., or any Indian

State/Central Governments Departments or Public Sector Undertaking of India.

4.8 System Integrator firm is one who sources sub-systems from one or more OEM(s)

firms and integrates the same with its own manufacturing/developing subsystem(s), to




5. Annualized average financial turnover : Bidder should have annualized average

financial turnover of at least {Figure = 30% of the estimated cost} during last

three financial years, ending 31st March or 31st December of previous year, as per

NOTICE INVITING TENDER SECTION D

126

practice prevailing in the country of the bidder. As a proof of financial turnover, copy

of abridged Balance Sheet along with Profit & Loss account of the bidder for last three

years should be submitted.

6. Experience:

The bidder should have successfully executed in last seven years, orders for supply &

installation of {give name of equipment/item under procurement} meeting any

one of the following six criteria.


cost}


estimated cost}


estimated cost}



a5. Two separate orders each consisting of minimum {Figure = 50% of the quantity

under procurement in the tender}.

a6. Three separate orders each consisting of minimum {Figure = 40% of the quantity

under procurement in the tender}

7. Performance/Experience Certificate :

7.1 Bidder must submit performance/experience certificate in respect of the works claimed

against experience as mentioned under Para 6.0. These certificates should be issued by

the end user agencies for whom the works have been carried out and endorsed by the

bidder. Such performance/experience certificates should clearly indicate the following:



iii. Order or Contract No., Award date



commissioning.

7.2 The scope of works in respect of works claimed against Para 6 above, should be

substantiated by submission of appropriate documentation such as relevant portion of

the contract.

8. The bidder (in case of Indian bidder only and foreign registered firms having permanent


127

8.1 Overseas bidder shall provide the Permanent Account Number within 30 days after

award of contract.

8.2 Date of publishing of NIT in press will be taken as reference for assessing the eligibility

criteria.

8.3 The tender for the offered system cannot be submitted both by the OEM and its



8.4 The bidder as authorized representative can participate on behalf of only one OEM.



stating the same.


for execution of the subject scope of work in the tender.







any compensation



tender document shall be signed only by the Principal /OEM/System Integrator & not by

the agent.

8.10 Foreign Firms shall enclose all details of their Indian agents/Firms/Representatives

8.11 Concessions to the bidders registered with NSIC, shall be applicable as per the directives

of Govt. of India.

8.12 Purchase preference to Central Public Sector Undertaking shall be applicable as per the


9. The tender fee will be Rs. [……/-] (Rupees ……… only). The tender fee is non-

refundable. Tender processing fee shall be paid to AAI, on-line after registration. Bidders

shall be allowed to register, login to AAI’s e-Procurement portal and down load tender

document, free of cost. However bidders shall be allowed to submit their tender, both

Technical & Financial bids only after paying Tender Processing Fee on-line

10. Each tender shall accompany the Earnest Money Deposit, in the form of

a) Demand Draft /Pay Order in INR,………… or USD …….in favour of “Airports

Authority of India” payable at New Delhi from a Nationalized / Scheduled bank.

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OR





bidders.

10.1 Tenders not accompanied by the requisite EMD and Tender Fee shall be summarily

rejected. EMD shall be submitted in person to the office of Executive Director (CNS-P),

R.G. Bhawan, New Delhi-110003. Scanned copy of performance Bank Guarantee or

Demand Draft towards EMD shall be uploaded along with “PQQ” documents

10.2 EMD Bank Guarantee :





b. Bidder shall provide name, designation, address, Fax & phone of the bank issuing

BG for confirmation purpose.

c. Bidder firm shall not change or alter or modify, in any way, the language /contents

of Annexure V (Performa for submitting Eligibility requirements and Undertaking) &

Annexure VI (EMD Bank Guarantee).




in any manner.



encashing the EMD.


amount submitted by bidders.

h. All bank/conversion charges shall be to bidder’s account.




requirement or Technical qualification, EMD shall be refunded after Pre-

qualification/Technical evaluation.

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between 1000 hrs. to 1700 hrs. (Except 1300 hrs. to 1400 hrs.) on all working

days w.e.f ……………………… upto ……………………….. on submission of

application, in the prescribed Proforma (Annexure-V) along with the non refundable

tender fee through a demand draft from a Nationalized /Scheduled bank drawn in

favour of “Airports Authority of India” payable at New Delhi”.

OR

12. Tender documents can be down loaded from Airports Authority of India Website





13. Any amendment or corrigendum to the tender document will be posted on AAI website.

Those bidders, who purchase the tender document by paying the tender fee, will be

intimated of any amendment/corrigendum by fax, by email or by post. For the bidders,

submitting bids on downloaded tender document, it is bidders’ responsibility to check

for any amendment/corrigendum on the AAI website or check for the same from the

tender issuing authority before submitting their duly completed bids.



……………………. up to 1430 Hours.

15. Tenders (Envelope A) will be opened on …………………….. at 1500 Hrs. in presence

of bidders or their agents in the O/O Executive Director (CNS-Planning), AAI, Rajiv

Gandhi Bhawan, Safdarjung Airport, New Delhi – 110 003 by duly constituted

committee.

16. Address for Correspondence: Applications and enquiries regarding clarification/

interpretation in connection with this pre-qualification notice should be addressed to:



Rajiv Gandhi Bhawan, Safdarjung Airport,New Delhi - 110 003.





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Additional clauses for E-tendering may be added as given below:

Tender document

1. The tender document consists of three sections. The bidder shall go through all these

sections ( Section A- General Information Guidelines: Section B- Terms & Conditions:

Section C:Technical & Operational requirements) of the tender document and shall

comply with each clause of all the three sections.

2. Bidders willing to participate may download the digitally signed tender document on-line

from AAI’s e-Procurement portal at http://etender.aai.aero/irj/portal and submit

digitally counter signed tender document on-line at the same portal.

3. The instructions in the tender document are binding on the bidder and submission of the

tender shall imply unconditional acceptance of all the terms and conditions by the

bidder.

Schedule of Important Activities. Activity Date & Time

Last Date & Time for response to bidders’ queries by AAI DD/MM/YY, 1700 hrs

Last Date for download of tender document DD/MM/YY, 1700 hrs

Last Date for submission of PQQ, Technical and Price bids DD/MM/YY, 1400 Hrs

Date of opening of pre-qualification bid DD/MM/YY, 1500 Hrs

Opening of Technical bids Will be notified

Opening of Price bids Will be notified

Bidder shall upload tender on AAI E-Portal well in advance to avoid last minute hassles .

AAI shall not entertain any queries on such subject after last date of downloading tender

document i.e DD/MM/YY.

4. Amendment to Tender document

4.1 At any time, prior to scheduled date of submission of bids, AAI if it deems appropriate

to revise any part of this tender or to issue additional data to clarify and

interpretation of provisions of this tender, it may issue addendum / corrigendum to

this tender. Any such addendum / corrigendum shall be deemed to be incorporated

by this reference into this tender and binding on the bidders. Addendum /

corrigendum will be notified through AAI’s e-Procurement portal at

http://etender.aai.aero/irj/portal.

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5. Clarifications of Bid Documents

5.1 Bidder, requiring any clarification of the tender Document, may submit their

clarifications, if any, through provision of AAI’s e-Procurement Portal at


Request for clarifications received from bidders shall be responded by AAI till the

schedule indicated in para.9.3 above or as extended thereto by AAI.

Replies to Clarifications by AAI will be uploaded through AAI’s e-Procurement Portal.

The bidders are advised to visit AAI’s e-Procurement portal at

http://etender.aai.aero/irj/portal regularly.

• Clarifications and other documents, if and when issued by AAI, shall be in relation to

the tender and hence shall be treated as their extension.

• AAI makes no representation or warranty as to the completeness or accuracy of any

response, nor does AAI undertake to answer all the queries that have been posted

by the Bidders.

• In order to provide reasonable time to bidders to take the amendments into account

for preparing their bids, AAI may, at its discretion, extend the deadline for the

submission of bids suitably.

6.0 Composition of Bids and General Guidelines for bid process

6.1 Bidders shall submit their bids as per scheduled date & time through AAI’s

e-Procurement portal at http://etender.aai.aero/irj/portal only.

AAI’s e-Procurement system shall not allow bidders to submit their tender, after the

scheduled date & time. Bidders shall submit tender before the deadline specified in

Para.9.3 of this tender document. The Technical bids and the Financial bids will be

opened online by AAI at the time and date as scheduled for the same. All the

Statements, documents, certificates etc., uploaded by the bidders shall be downloaded

and verified for technical evaluation. The clarifications, particulars, if any, required from

the bidders, will be obtained through query provision available in AAI’s e-Procurement

portal. The result of Technical bid & Financial bid evaluations shall be displayed on AAI’s

e-Procurement portal and shall be visible to all the bidders who participated in this

Tender.

6.2 On-line E-Tendering General Guidelines

i. System shall not permit upload of bids after the scheduled time of submission.

ii. The bidder may correct, modify or withdraw his bid after submission but prior to

scheduled last date & time of submission of Technical and Price bids.

iii. Subject to Clause “ii” above, no bid shall be modified subsequent to the schedule

time of submission of bids.

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iv. To assist in the examination, evaluation and comparison of bids AAI may, at its

discretion ask the bidder for the clarification / confirmation of compliance of its bid.

The request for clarification / confirmation of compliance and the response shall be

through query provision available in AAI E-Tendering portal.

v. Bidders may submit their response to AAI queries through provision of AAI E-

Tendering Portal Only

vi. No post bid clarification / confirmation of compliance at the initiative of the bidder

shall be entertained.

7.0 E-Tendering Participation Requirements : Vendors are required to carry out the

following activities:

7.1 Registration : Registration shall be on AAI’s e-Procurement Portal free of cost, at


7.2. Login id : Bidder shall click ‘Apply for Access Authentication’ and fill in details. On saving

the details, a password for the registered bidder shall be generated by the system and

the password shall be sent to the bidder’s e-mail id which was filled in during

registration. On receipt of email, the login id is ready with the bidder to proceed further.

7.3. General guidelines for bidders : General guide lines for bidders to proceed further in

the tender process are available in the AAI’s e-procurement portal under Self Help Files

Tab. Bidders shall go through the guidelines before submitting their bids on-line.

7.4. Digital Certificate : Bidder shall have a legally valid class III digital certificate as per

Indian IT Act, 2000, from the licensed Certifying Authorities, operating under the Root

Certifying Authority of India (RCAI), Controller of Certifying Authorities (CCA) of India

(Please see www.cca.gov.in). Licenced CA's in India are:

a) Safe Scrypt b) NIC c) IDRBT d) TCS e) Mtnl Trustline f) GNFC g) e-MudhraCA

7.5 On-line E-Tendering : For all AAI tenders hosted on AAI e-procurement site, the

Financial Bid and Technical Bids shall be submitted on-line only. However, documents

which have to be submitted in originals like EMD and any other documents mentioned in

the tender documents have to be submitted offline as advised in this tender document.

On-Line Training & technical assistance for interested bidders shall be available as

follows:

7.6 Bidder’s training support system : Detailed information in this regard have been

provided to the bidders at AAI’s e-Procurement Portal under the Self Help Tab. Training

support system for registered bidders is given inside the portal and visible to the

registered bidders only.

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SECTION – A : GENERAL INFORMATION AND GUIDELINES

1. Purpose and Scope of Tender Document :

1.1. This tender sets out the terms and conditions, general, operational and qualitative

requirements to be met for supply, installation, testing & commissioning of [Name of

project] as per specifications given in Section- C of the tender Document. The

requirement is for systems at various airports as listed in Annexure- III.

1.2. This tender document includes requirements in respect of description of items, their

quantities, dispatch & delivery schedules, support services etc.

1.3. AAI reserves the right to vary the quantities to the extent of 25% .

1.4. The bidder shall assume complete responsibility for the design and performance of the

equipment / items to satisfy all technical and functional requirements as described in

Section - C.

1.5. The tender must be valid for a minimum of 180 days from the date following the date of

opening of tender document (Envelop ‘A’) or PQQ (in case of E-Tender).

2. Tender Document :

2.1. The tender document consists of three Sections. The bidder should go through all these

sections (Section-A - General Information and Guidelines; Section-B - Terms &

Conditions; Section-C - Operational & Technical Requirements) of the tender document

and must comply with each clause of all the three sections.

2.2. The instructions given in the tender document are binding on the bidder and submission

of the tender will imply unconditional acceptance of all the terms & conditions by the

bidder.

2.3. Bidder may be required to demonstrate / practically verify the specific / all features of

the equipment, as deemed fit by AAI, for the evaluation of the bid.

2.4. Deviations, if any, from the laid down requirements/ specifications shall be brought out

separately in the deviation sheets to be attached with relevant section of the tender. The

scanned copy of deviation sheet shall be uploaded along with the technical bid

documents in case of E-tender.

2.5. Each and every page of submitted tender document including technical documentation

should be serially numbered & indexed.

3. Technical Literature & Brochures, Language

3.1. One set of scanned copy of complete technical documentation comprising of

Operations, Installation and Maintenance manuals including detailed Part List of the

equipment shall be up-loaded along with the technical bid . One set of hard copy & soft

copy of complete technical documentation comprising of Operations, Installation and

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Maintenance manuals including detailed Part List of the equipment shall be submitted

under sealed cover along with the technical bid to the office of Executive Director (CNS-

P) Rajiv Gandhi Bhavan, New Delhi on or before the date of opening of PQQ as described

in the tender. The maintenance manual should contain detailed sub system

specifications, functional description, recommended maintenance schedule, test and

adjustment procedures, circuit & layout diagrams of the equipment and other such

information which helps in providing un-interrupted operation of the facility and should

provide expected guidance to maintenance engineers in case of facility malfunctioning /

break down. The language of all manuals, instructions, technical documentation etc.

provided under this contract will be English.

3.2. As part of Technical Evaluation of the tenders, the compliance of the offered equipment

to the specifications as stated in Section – C, shall be verified from the technical

manuals and documentation of the equipment.

3.3. The scanned copy uploaded on the e-tender portal shall be treated as master copy and

will be referred during PQQ and Technical evaluation process.

4. Address for Correspondence

All completed tender documents and enquiries regarding clarification/interpretation

should be uploaded on AAI e-tender portal before the date prescribed in Tender in

Section-D para ….and one hard copy shall be delivered at following address:



Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi - 110 003.


5. Tendering Procedure

5.1. Tenders once submitted/uploaded shall be final and no amendment thereto shall be

permitted. One bidder shall submit only one tender.

5.2. Tender shall consist of three envelopes - Envelope A, Envelope B & Envelope C. The

contents of Envelopes A, B & C are listed hereunder.

5.3. In case of e-tender Envelope A, Envelope B & Envelope C shall be replaced by PQQ,

technical bid and financial bid process.

5.4. “Envelope A” or PQQ document submitted/uploaded properly will contain the

following in light of the eligibility requirement defined in Section D:

5.4.1. Duly filled “Proforma for submitting Tender” Unconditional acceptance of tender

(Annexure - V)

5.4.2. Earnest Money Deposit (EMD) as per Annexure-VI

5.4.3. Tender Document Fees (in case of downloaded tender document ),

5.4.4. Valid Sales Tax Registration certificate. (for Indian bidders)

135

5.4.5. In case of OEM, Proof of being Original Equipment Manufacturer (OEM)

5.4.6. In case of authorized representative of OEM - current authorization from the OEM.

5.4.7. In case of System Integrator- authorization of OEM declaring the tenderer as system

integrator for its product, detailed and valid agreement between System Integrator and

the OEM(s) defining clearly the role, responsibility, scope of work and contribution

towards the tendered Equipment/System for each SI and the OEM(s).

5.4.8. Bidder shall submit/upload certificate from OEM/undertaking from the respective

OEM(s) to ensure availability of spares component for entire life of the item (estimated

to be 10 years)

5.4.9. Bidder firm shall submit/up-load an undertaking stating its firm or its partners or its

Directors have not been black listed or any case is pending or any complaint regarding

irregularities is pending, in India or abroad, by any global international body like World

Bank/International Monetary Fund/ World health Organization etc.., or any Indian

State/Central Governments Departments or Public Sector Undertaking of India

5.4.10. All the Indian bidders shall provide the Permanent Account Number (PAN). Overseas

bidder shall provide the Permanent Account Number within 30 days after award of

contract.

5.4.11. Foreign Firms shall upload all details of their Indian agents/Firms/ Representatives.

5.4.12. Certified Testimonial / Certificates in support of Experience : Bidder must

submit/ upload performance/experience certificate in respect of the works claimed by

the bidder for meeting the eligibility criteria. These certificates should be issued by the

end user agencies for whom the works have been carried out and endorsed by the

bidder. Certified English translation shall be enclosed if language is other than English

Such performance/ experience certificates should clearly indicate the following:



iii. Order or Contract Number and Award date



commissioning.

5.4.13. Duly signed Integrity Pact in prescribed proforma (Annexure – VII).

5.4.14. Certified copies of abridged balance sheets along with profit & loss account of the firm

(tenderer) in support of Annualized average financial turnover during last three

financial years ending 31st March or 31st December of previous year, as per practice

prevailing in the country of the firm (tenderer).

136

5.4.15. Non submission of any of the aforesaid documents or, submission of any of the

aforesaid documents in a manner which is in non conformance with the relevant

clause of the tender document may result in rejection of tender submitted by the

bidder.

Tenders shall accompany Tender fee (in case of downloaded Tenders) and EMD (in

either Demand Draft or Bank Guarantee). There shall be no exemption to any bidder,

on account of any reason/registration. Tenders not accompanied by the requisite valid

EMD or Tender Fee (as applicable) in Envelope A/PQQ shall be rejected. Non

submission of any of the aforesaid documents or, submission of any of the aforesaid

documents in a manner which is in non conformance with the relevant clause of the

tender document shall result in rejection of tenders.

5.4.16. One set of hard copy and soft copy of uploaded PQQ documentin English language

shall be submitted under sealed cover to the office of Executive Director (CNS-P) Rajiv

Gandhi Bhavan, New Delhi on or before the date of opening of “PQQ” as described in

the tender.(If Approved by ED (CNS)

5.5 “Envelope B”/Technical bid submitted /uploaded /properly sealed and marked

"Technical Bid" shall contain the following:

5.5.1. The compliance statement for Section-A - General Information and Guidelines; Section-

B - Terms & Conditions and Section-C - Operational & Technical Requirement, complete

in all respect, duly signed and stamped by the bidder or digitally signed.

5.5.2. Tender document after endorsement (signing) by the bidder on each page.

Compliance statement for Section - C : 'Complied' or “Partial complied” or 'Not

complied' shall be given against each statement and specification of Operational &

Technical Requirement and should be duly substantiated and supported by appropriate

documentation of the product. Additionally, in Section-C (Operational & Technical

Requirements), bidder is required to mention page and para no. of the

documentation enclosed with the tender, in support of and to verify the

compliance. Without such reference, tender may not be considered for

evaluation and is liable to be rejected.

5.5.3. Detailed information on the bidder’s experience in supply, installation and

commissioning of the tendered item/equipment/system.

5.5.4. One set of hard copy and soft copy of manuals and technical documentation confirming

to Para 3 - Technical literature and brochures, language.

5.5.5. Detailed List of deliverables – (Bill Of Quantity) with Part No., Make & Model number of

equipment and accessories offered - fully meeting the operational and technical

requirement as spelt out in Section-C of tender, WITHOUT INDICATING THE

PRICE.

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5.5.6. Comprehensive list of spares, WITHOUT INDICATING THE PRICE in a format

prescribed Annexure-2A/2B/2C.

5.5.7. Terms and conditions if any, related to Price Bid. Deviations if any from the laid down

requirements of this tender shall be prepared indicating the para no. page no of the

Tender document.

5.5.8. Non submission of any of the aforesaid documents or, submission of any of the aforesaid

documents in a manner which is in non conformance with the relevant clause of the

tender document may result in rejection of tender.

5.5.9. Original documents submitted online at AAI e-portal during technical bid submission

shall only be accepted for verification as per para 5.4.5 above.

5.6. “Envelope C” properly sealed with sealing wax and marked "Price Bid" will

contain the following:

5.6.1. The pricing schedule document as per format is given in Annexure-I & 1A shall be

filled as per instruction given in Annexure- 1-B or as given in E-Portal.

5.6.2. Price break-up indicating Taxes and duties etc should be indicated in Annexure -1A.

Price bid should be submitted strictly as per the Performa and as a hard bind document.

In case of E-tender, Scanned copy of rate of Statutory taxes shall be uploaded along

with Financial bid.

In case of E-Tender, Pricing detail of spares as per Annexure 2-A, 2B & 2C shall be

submitted along with Financial bid in sealed cover. These prices shall be valid for three

years after expiry of warranty. Bidder should insure the availability of spares till the life

time of equipment/system. Bidder has to intimate the obsolesce of spares well in

advance so that AAI will keep sufficient number of spares in stock to maintain the

system for the life span of equipment/system.

5.6.3. Prices indicated in Annexure 1 should tally with Annexure -1A.

5.6.4. AAI shall pay the taxes and duties indicated in Annexure 1A. Nothing extra shall be paid

by AAI on account of non-inclusion of any cost component for the purpose of calculating

taxes.

5.6.5. Deviations in Statutory Taxes shall be payable by AAI as per the terms and conditions

defined under tender clause no….(Taxes and Duties) No additional price break up is

permitted.

5.6.6. The rates shall be entered in figures as well as in words. For the purpose of the tender,

the metric system of units shall be used. In the event of any discrepancy, the unit price

quoted in words will be taken as the correct basis.

5.6.7. In case of item rate tender, only rates quoted shall be considered. Bidder shall quote the

rates in figures as well as in words (In English language only). The rates quoted in

figures shall be in International numerals and whole numbers. The amount for each

item shall be worked out and the all requisite totals given. Special care shall be taken to

138

write rates in figures as well as in words, and the amounts in figures only. The Total

Amount shall be written both in figures and in words.

5.6.8. That if on checks there are differences between the rates given by the contractor in

words and figures or in amount worked out by him, the following procedures should be

followed :

a) When there is a difference between the rates in figures and in words, the rates

which correspond to the amounts worked out by the contractor, should be taken as

correct.

b) When the amount of an item is not worked out by the contractor or it does not

correspond with the rates written either in figures or in words, then the rate quoted

by the contractor in words should be taken as correct.

c) When the rate quoted by the contractor in figures and in words tallies but the

amount is not worked out correctly, the rate quoted by the contractor should be

taken as correct and not the amount.

d) In case of percentage rate tender, the contractors are required to quote their rates

both in amount as well as in the percentage below / above the rates entered in the

schedule. In such cases, in the event of arithmetical error committed in working out

the amount by the contractor, the tendered percentage and not the amount should

be taken into account.

e) If agency fail to quote the rate in word & in figure and amount (both) the same shall

be assume to be included in the total tendered amount.

5.6.9. Currency of quotes and other details regarding pricing :

5.6.9.1 Overseas bidders quoting in foreign currency for the supplies made from overseas,

the price bid shall be in US Dollars / Pound Sterling / Euro/INR or in any major

currency.

5.6.9.2 As a rule, overseas bidder shall quote in foreign currency for the supplies and

services being provided from overseas and in INR for the supply and services to be

provided from India.

a.5.6.9.3 Foreign bidders quoting in INR for the imported items/ services will be paid through

Letter of Credit opened in INR and supplier has to ensure that his overseas Banker

fulfills the requirement of receiving the payment in INR. LC can also be opened in

Foreign currency if requested by supplier equivalent to quoted INR value for

imported items/services. Quoted INR value will be converted into foreign currency

at a conversion rate applicable on the day of opening of LC but payment will be

restricted to quoted value in INR. Any fluctuation in foreign currency shall be in

account of bidder.

139

5.6.9.4 Items being supplied by overseas supplier from India shall be quoted in INR inclusive

of all Taxes and payment shall also be made in INR directly to Indian supplier against

his invoice duly endorsed by Principal Supplier or to Principal supplier directly but in

INR on producing proof towards payment of Sale Tax / VAT etc.

5.6.9.5 Price indicated by overseas bidder in INR for the services rendered in India through his

local agent shall be paid to its local agent in INR against his invoice duly endorsed by

Principal Supplier or to Principal supplier directly but in INR on submission of proof

towards payment of Indian Taxes. However, service tax will be reimbursed on

production of service tax challan to his Indian Agent.

5.6.9.6 Overseas bidder shall quote overseas freight and insurance in foreign currency or in

INR and shall be paid through letter of credit or as per Tender condition.

5.6.9.7 Overseas bidder shall quote inland freight and insurance, custom handling / clearing

charges, octroi , entry tax , loading / unloading charges in INR or in foreign currency

and payment shall also be made in quoted currency either to the successful bidder or

its authorized agent.

5.6.9.8 Bid having component of foreign currency shall be converted into INR for the purpose

of evaluation. The rate of foreign exchange (TT selling rate as notified in the

Economics Times on the day of opening of tenders Envelop A/PQQ ) will be taken as

the foreign exchange rate on date of opening of (Envelope A/PQQ )

5.6.9.9 Only Format indicated in Annexure-1 shall be considered for the purpose of

Evaluation. Prices indicated in Annexure-1 shall tally with Annexure-1A.

5.6.9.10 In case of contract on DDU basis for supplies/SITC of equipment where

bidder is responsible for custom clearance and delivering the items upto

consignee site, Prices quoted by the bidder in Annexure 1 shall be inclusive of all the

taxes and duties applicable in the country of origin as well as in India. All the overseas

taxes, overseas freight & insurance, handling charges, inland freight and insurance,

Installation , commissioning & testing charges all applicable inland taxes in India such

as all components of custom duties, excise duties, VAT, sales tax, octroi, entry tax,

work contract tax, labour cess and any other tax and handling charges as applicable

shall be included in supply/ installation, testing and commissioning item rates as

applicable. Nothing extra shall be paid on any account.

a) In case, bidder is responsible for custom clearance then also Custom duties, CVD

and Cess etc in India for the imported items and for which L/C (Letter of credit) to

be opened by AAI, shall be paid by AAI as per actual subject to maximum quoted

value, directly to respective authorities of Government of India in the form of

CDEC under Served From India Scheme. However, while making payment the

necessary adjustment in invoice bills shall be carried out by AAI. In case, bidder

has not included any item for the purpose of calculating custom duty then also any

additional custom duty shall be on account of supplier.

140

b) Bidder has to calculate the custom duty on the CIF value + 1% landing

charges). Any deviation in custom tariff due to reclassification or change in

custom duty rates by Govt. of India will be on account of AAI. In case of

Supplies/SITC contract on DDU basis where delivery is desired upto

consignee address, it will become an indivisible work contract, which includes

supply, installation , testing and commissioning of items as per the schedule

of quantities , contractor is responsible for ensuring the items reach the site

in good condition. The bidder shall survey the Rail / Road / Sea route for

transporting the system to respective airports. If Road Permit is required to

be arranged by bidder, consignee shall provide the required documents i.e.

copy of purchase order, authorization letter etc. for arranging the road

permit without any extra cost to AAI.

5.6.11. The pricing schedule of comprehensive list of Spares and Critical Spares as per

Annexure-2 –A, 2B & 2C. These prices shall be valid for three years after expiry of

warranty. Bidder should insure the availability of spares till the life time of

equipment/system. Bidder has to intimate the obsolesce of spares well in advance so

that AAI will keep sufficient number of spares in stock to maintain the system for the

life span of equipment/system.

5.6.12. Detailed List of deliverables – (Bill Of Quantity) with Part No., Make & Model number of

equipment and accessories offered - fully meeting the operational and technical

requirement as spelt out in Section-C of tender shall be attached as enclosure to duly

filled Annexure - I. The above detailed list of deliverables should also be submitted

along with the Technical Bid, however, the enclosure with Technical Bid shall be un-

priced.

5.6.13. In case of any missing information on the above, the bid is liable to be rejected.

5.6.13. In case of any missing information on the above, the bid is liable to be rejected.

5.6.14. It may be clearly understood and noted that in Price Bid (Envelope C) of the tender

document is for pricing alone. No condition, whatsoever, should be stipulated in

this part. Everything that the bidder has to say, regarding tender, other than pricing

should be stated only in Technical Bid of the tender. If any conditions are stipulated

in the Price Bid of the tender, the tender is liable to be rejected.

5.6.15. All the three Envelopes A, B & C mentioned above will be submitted in SEPARATE

SEALED ENVELOPES, appropriately indicating on top the Tender No.,

“ELIGIBILITY REQUIREMENTS”, "TECHNICAL BID" and "PRICE BID”. Or

In case of E-Tender, Envelopes containing “PQQ” , Technical Bid documents along

with bill of material &, Pricing of comprehensive spare list , Rate of Taxes quoted in

the financial bid and deviation sheet if any shall be submitted in, appropriately

indicating on top the Tender No.,

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1. “PQQ” BID .

2. "TECHNICAL BID" & BILL OF MATERIAL .

3. "PRICE BID FOR SPARES”.

5.7. Envelopes should be enclosed in a COMMON SEALED ENVELOPE and should contain the

following inscriptions on the cover as indicated below and should contain the following

inscriptions on the cover. As indicated below:

TENDER FOR : {Name of the Project}

TENDER NO. : (CNS-P)-0A/20xx-yy

LAST DATE OF SUBMISSION : …………………….upto 1430 Hrs.

Submitted to : Executive Director (CNS-Planning)

AAI CHQ, First Floor, Rajiv Gandhi

Bhawan, Safdarjung Airport,

New Delhi – 110 003

Tender submitted by Name of Bidder :

Full Address :

Telephone :

Fax :

E-mail :

Bidder Represented by :

5.8. All changes, alterations, corrections in the bid shall be signed in full, with date, by

the person(s) signing the bid. Erasure and/or overwriting on correcting fluid are not

permissible.

5.9. Tenders, in which any of the particulars and prescribed information are missing or are

incomplete, in any respect and/or prescribed conditions are not fulfilled, shall be

considered non responsive and are liable to be rejected.

6. Concessions to Small Scale Industries (SSI) Units & Central Public Sector

Enterprises (CPSEs) will be applicable as per Govt. of India guidelines.

7. Opening of Tender Documents

7.1. Envelope A (Eligibility criteria, EMD & Integrity Pact) will be opened on the designated

date of opening of tender. The eligible bidders only shall be considered for evaluation of

technical bid. or

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7.2. In case of E-Tender, AAI shall open PQQ Bids as per scheduled Tender Opening Date and

Time. Authorised representatives of AAI shall download all the up-loaded documents

against “PQQ” and evaluate bids for Pre- qualification. Bidders may remain present at

the venue i.e. AAI’s premises during the opening of “PQQ” or Bidders can monitor the

“PQQ” opening process On-line.

7.3. AAI will inform the schedule date and time of opening of Technical bid to qualified

bidders. Bidders may remain present at the venue i.e. AAI’s premises during the

opening of Technical bid or Bidders can monitor the “Technical Bid” opening process On-

line in case of E-Tender.

7.4. To shortlist technically qualified bidder, Technical Bids of eligible bidders shall be

scrutinized by AAI to ensure whether the same are in conformity with the operational

requirement & technical specifications. Bidder should provide complete information to

substantiate compliance of the technical specifications listed in the tender. In case of

incomplete compliance statement or inadequate information, tenders shall be finalized

on the basis of the information available. It shall, therefore, be in the bidders' interest to

give complete and comprehensive technical particulars, description and details while

submitting the bid.

7.5. AAI may seek clarifications on technical details or any other information deemed

necessary. The queries raised should be replied positively within the time specified,

failing which the evaluation will be done on the basis of the information available. In

case of E-Tender, Such queries raised on-line on AAI’s e-Procurement portal

shall be replied on-line positively by the bidder, within the time specified,

failing which the evaluation shall be done on the basis of the information

available

7.6. The bidder shall not make any 'suo-moto' changes in the drawings/specifications

/designs etc. However, in case it becomes necessary for the bidder to make any changes

in their original price as listed in the Price Bid of the tender on account of technical

clarification, deviations, etc. in response to the queries raised by AAI which result in

change in scope of work defined in Tender to bring the equipment up to the

requirements, such price adjustment/revision should be sent in a separate sealed cover

duly super-scribed as:

"PRICE ADJUSTMENT TO PRICE BID. REVISED PRICE AGAINST TENDER

NO............... AND RELEVANT TO THE TECHNICAL PARTICULARS AS

CONTAINED IN THE LETTER NO……..........DATED............"

Such adjustments shall be allowed to all the bidders.

However such price bid adjustments shall not be allowed to those bidders who on

account of response to technical clarification / the queries raised by AAI bring the

equipment up to the requirements stated in the tender.

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7.7. Envelope “ C ” containing Price Bid, only for the bidders found technically qualified by

AAI shall be opened. In case of E-Tender, Date and Time of opening of Financial bid

shall be notified to successful bidders through AAI’s e-Procurement Portal. Bidders may

present at the venue during opening of Financial bid or can monitor On-Line the bid

opening process.

7.8. The envelope containing price adjustment data as referred to in Para 7.6 will be kept

duly sealed along with the original Price Bid of the tender. After all the tenders have

been technically examined, Envelope C containing Price Bid along with subsequent

Price adjustment, if any, of the technically acceptable bidders shall be opened for which

the date and time shall be intimated to the technically qualified bidders through FAX /

letter / telephone / email etc. in advance.

7.9. No correspondence shall be entertained from the bidders after opening of Price Bid of

the Tender. Date of acceptance and opening of tender can be extended on sole

discretion of Executive Director (CNS)

8. Comparison and Evaluation of Tenders :

8.1. The tenders received and accepted will be evaluated by AAI to ascertain the complete

scope contained in the tender document. The objective of the evaluation is to select a

bidder that can provide the desired service with maximum efficiency and quality and

meeting the Technical requirements defined in Section “C”.

8.2. In the evaluation of tenders, the overall quality and economy of the system offered will

be kept in view. Such offers which necessitate, additional expenditure required to be

made by AAI may have to be loaded to make the offer compatible with the tender

document requirement.

8.3. At no cost to AAI, as a part of Technical Evaluation, bidders participating in this tender

may be required to demonstrate operational and technical requirements or

specifications, at a location considered fit by bidder in consultation with AAI.

8.4. Tenders meeting Technical bid criteria as specified herein shall only be informed and

considered for opening and evaluation of Financial bid. However, tenders not meeting

Technical bid criteria shall be informed for not meeting the technical bid criteria

8.5. The tenders found technically acceptable shall be compared on the basis of price quoted

by the bidders for the entire scope of proposal. The amount indicated in the pricing

schedule Annexure-I will only be taken for price comparison. All the tenders will be

evaluated for the cost of equipment, accessories and expenditure towards services like

installation, training, transportation, insurance and all applicable taxes & duties etc.

8.6. While evaluating the Tenders, the benefit of CENVAT credit available to AAI shall be

taken into consideration. The lowest Tender shall be decided on the basis of Net Cost

to AAI . The Net Cost to AAI for works involving supply , Installation, Testing and

Commissioning Services shall be calculated as under:

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a) Gross Amount quoted by the firm (inclusive of all taxes custom duty).

b) Service Tax included at (A) above, if any.

Net Cost to AAI : Gross Amount quoted at (A) minus Service Tax at (B)

8.7. Please note that no CENVAT benefit other than Service Tax is availed by AAI.

9. Conversion Basis of Tenders :

9.1. For the purpose of evaluation of tenders, prices expressed by the bidder in a currency

other than Indian rupees will be converted into Indian rupees at the TT Selling Rates, as

notified in “The Economic Times” on the date of opening of the tender (Envelope A ).

10. Rejection & Return of Tender :

Airports Authority of India (hereinafter abbreviated as AAI) reserves the right to reject

any or part of tender without assigning any reason. The un-opened price bids for the

bidders which do not technically qualify to participate in price bid opening shall be

returned back after finalizing the award of tender, if requested by the bidder. AAI also

reserves the right at its sole discretion not to award any order under the tender called.

AAI shall not pay any cost incurred in the preparation and submission of any tender or

any cost incidental to it.

10.1. Tenders, in which any of the particulars and prescribed information is vague, missing or

is incomplete, in any respect and/or prescribed conditions are not fulfilled, shall be

considered non-responsive and are liable to be rejected. If the bidder gives wrong

information in his tender, AAI reserves the right to reject such tender at any stage or to

cancel the Contract, if awarded and forfeit the Earnest Money Deposit. AAI reserves the

right to debar such bidders to participate in future Tender.

10.2. The information contained in the tender should be comprehensive and to the point. The

tenders containing information other than sought, with a motive to confuse or delay the

finalization process are likely to be rejected.

10.3. Canvassing in any form in connection with the tenders is strictly prohibited and the

tenders submitted by the Contractors who resort to canvassing are liable for rejection.

10.4. Should a bidder have a relation or relations employed in the capacity of an officer of AAI,

the authority inviting tender shall be informed of the fact along with the offer, failing

which AAI, at its sole discretion may reject the tender or cancel the contract and forfeit

the Earnest Money Deposit.

11. Award of Contract

11.1. The acceptance of the tender will be intimated to the successful bidder by issuing letter

of intent. On receipt of letter of intent successful bidder shall send unconditional

acceptance of letter of intent to the Executive Director (CNS) Airports Authority of

India, New Delhi-110003 (India) within five working days of issue of letter of intent

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through Fax/ Courier / by authorized representative or as deemed appropriate, failing

which it should be constituted that he is not interested in the offer and hence not

accepted the letter of intent unconditionally.

11.2. AAI shall issue the purchase order to successful bidder on receipt of acceptance of letter

of indent. Successful bidder shall return one copy of purchase order within three

working days as a confirmation to acceptance of terms and conditions of purchase order

duly signed by him on each page of the order.

11.3. Successful bidder has to enter into an agreement with AAI on terms and conditions

mentioned in the tender, its corrigendum and technical queries and responses against

which purchase order has been issued.

11.3 AAI shall be the sole judge in the matter of award of contract and the decision of AAI

shall be final and binding.

12. Consignee

12.1. The ordered equipment / items shall be delivered to the port consignee as mentioned in

Annexure – III.

12.2. In case of installation of equipment is a part of the order, it will be the responsibility of

the successful bidder to install the equipment at the stations as mentioned in the

ultimate consignee mentioned in Annexure – III.

12.3. In case of Indian Supplier and in case of part supplies from Indian indigenous sources by

a foreign supplier, the ordered equipments / items or the equipments / items to be

supplied by foreign supplier from Indian indigenous source shall be delivered to the

ultimate consignee as mentioned in Annexure - III. Supplier shall only raise the bill to

AAI for the items sourced from India. In case, supplier is not registered in India, no sale

Tax/VAT will be payable to supplier.

13. Execution of Works

13.1. The works shall be carried out under the supervision of the In-charge CNS Unit of the

concerned Airport (as mentioned under ultimate consignee) or the nominated project

officer as the case may be, according to the terms and conditions of the contract.

14. Integrity Pact Program

14.1. Signing of Integrity Pact (Annexure - VIII) is mandatory for every bidder/contractee in

this procurement. The signed Pact should be submitted by the bidder in Envelope-A

along with EMD and be enclosed with the agreement by the contractee in this

procurement.

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14.2. The consequences of Integrity Pact may be pursued on the website

http://infosaarthee/pages/infosaarthee.aspx

14.3. The External Independent Monitor (EIM) for this procurement will be {…………………….}, Address: C/o The Chairman, Airports Authority of India, Rajiv Gandhi Bhawan,

Safdarjung Airport, New Delhi – 110 003.

15. Declaration :

The General Information and Guidelines given in the Tender Document are hereby

accepted unconditionally and shall be complied with.

Signature of Bidder

Name: ...........................................

Telephone: ....................................

Fax: ..............................................

E-mail : .........................................

Stamp : .........................................

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SECTION – B : TERMS & CONDITIONS

Note:

1. For stating Compliance: Write “C” in the third column below.

2. For stating Non-Compliance: Write “NC” in the third column below.

3. For stating Partial or Conditional Compliance: Write “PC” in the third column below.

S. No. Requirement Statement

of Compl-

iance &

agree

ment.

1. Standards & Proven Product

1.1. State of the art technology shall be deployed in the equipment for

the system offered and all designs, materials, manufacturing

techniques and workmanship shall be in accordance with the

highest accepted international standards for this type of

equipment.

1.2. The bidder shall also state, where applicable, the National or other

International Standard(s) to which the whole, or any specific part, of

the equipment or system complies.

1.3. The equipment/ system/ similar system having same functionalities /

offered for supply should be proven product. It shall be in operation

(not as an evaluation system) at two or more major international

airports, proof of which shall be submitted.

The proof of satisfactory operation of the such equipment/ system issued by the end user agency to be submitted along

with tender.

1.4. The offered equipment shall be currently under production and shall be

under supply or shall have been supplied in last three years.

Details of such supplies/installations having been carried out

in the past three years shall be submitted along with the

tender, clearly stating details of contact person of the user

agencies (name & email etc.)

2. Time/ Delivery & Installation Schedule and Part Supplies :

2.1. For Supply : As approved for the particular tender

For Installation : As approved for the particular tender

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Effective date is defined as under:

a. In case of Overseas supply on FOB/DDU basis: Date of opening of

L/C subject to submission of performance bank guarantee within

the stipulated period, otherwise, 45 days from issue of purchase

order.

b. In case of supply from India on Ex-works basis: Date of acceptance

of Purchase order by the supplier.

c. In case of Indian supplies upto destination: Date of acceptance of

Purchase order by the supplier.

2.2 The supply of goods ordered should be fully completed in not more

than {Indicate number} part shipments within the stipulated delivery

schedule. The sets supplied in each shipment should be complete in all

respects.

3. Liquidated Damages

3.1 In case of delay in completion of the contract, liquidated damages

(L.D.) shall be levied @ 1% of the full value of uncompleted portion

of work per week (part of week to be treated as one week) subject to a

maximum of 10% of total contract value. If the uncompleted work ,

restricts the operation of complete system then LD shall be applicable

to total value of contract with approval of Competent Authority.

3.2 Normally, Contract have following activities:

a. Supply of equipments

b. Supply of Spares

c. Installation and testing

d. Training

(i) Factory training

(ii) In-country Training

Delay in any stage of work shall invite L.D. according to value

of the activity as defined above at 3.1. In case , more number

of systems are ordered for different Airport then LD shall be

calculated on per system basis and it shall not be linked with

the value of complete supply. (Modify the clause as per tender

requirement)

3.3 AAI, if satisfied, that the works can be completed by the contractor

within a reasonable time after the specified time for completion, may

allow further extension of time at its discretion with or without the levy

of L.D. In the event of extension granted with levy of L.D., AAI will be

entitled without prejudice to any other right or remedy available in that

behalf, to recover from the contractor an agreed compensation

amount calculated @ 1% of the total value of the uncompleted portion

of work per week or part thereof subject to a maximum of 10% of total

contract value.

Modify

as per

tender

requir-

ement

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4 Time : The Essence of Contract.

4.1 The time and date of completion of the works as contained in the

suppliers proposal and as agreed to contractually after modifications,

if any, shall be final and binding upon the supplier. It must be

understood that the supplier has made the proposal after fully

considering all such factors which may have any bearing on the time

schedule of the contract, and no extension in the schedule whatsoever

shall be permitted on these accounts by AAI.

5. Delay & Non-Conformance

5.1 In case of time schedule including approved delay with or without

levy of liquidated damages for late delivery of equipment or late

completion of SITC whichever if applicable as contained in Para 2 & 3

above not being adhered to, AAI has shall have the right to cancel the

order wholly or in part thereof without any liability of cancellation

charges and procure the goods elsewhere in which case the successful

bidder shall make good the difference in the cost of goods procured

elsewhere and price set forth in the order with the successful bidder.

In the event of rejection of non-conforming goods, the successful

bidder shall be allowed to correct the non-conformities without

extension in delivery period. If successful bidder fails to do so within

the stipulated time, the purchaser shall have the right to take recourse

to 5.1.

6. Deductions from Contract Price

6.1 All costs, damage or expenses which the AAI may have paid, for which

under the contract the supplier is liable, will be claimed by the Airports

Authority of India (AAI). All such claims shall be billed by the AAI to the

Supplier regularly as and when they fall due. Such bill shall be

supported by appropriate and certified vouchers or explanations to

enable the supplier to properly identify within fifteen days of the

receipt of the corresponding bills and if not paid by the supplier within

said period, the AAI may then deduct the amount from any money due

or becoming due to the supplier under the contract or may be

recovered by actions of Law or otherwise, if the supplier fails to satisfy

the AAI of such claims.

7. Right to Accept or Reject the Tenders

7.1 The right to accept the tender in full or in part/parts will rest with AAI.

However, AAI does not bind itself to accept the lowest tender and

reserves to itself the authority to reject any or all the tenders received

without assigning any reason whatsoever.

7.2 Tenders, in which any of the particulars and prescribed information is

missing or is incomplete, in any respect and/or prescribed conditions

are not fulfilled, shall be considered non responsive and are liable to be

rejected.

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8 Termination of Contract at Purchaser’s Initiative

8.1 The AAI reserves the right to terminate the contract either in part or in

full due to the reasons other than specified herein. The AAI shall in

such an event give 15 days notice in writing to the Supplier of their

decision to do so.

8.2 The supplier upon receipt of such notice shall discontinue the

work on the date and to the extent specified in the notice, make

all reasonable efforts to obtain cancellation of all orders and

contracts to the extent they are related to the work terminated and

terms satisfactory to the AAI, stop all further subcontracting or

purchasing activity related to the work terminated, and assist the

AAI in maintenance protection, and disposition of the works acquired

under the contract by the AAI.

9. Earnest Money Deposit (EMD)

9.1 Each tender must accompany the earnest money, as indicated in the

eligibility criteria, in the form of “EMD Bank Guarantee” from a

Nationalized/Scheduled Bank (as per RBI Schedule) having office in

India, in the prescribed Proforma as per Annexure-VI.

Tenders not accompanied by the requisite EMD or proof of exemption

from EMD shall be rejected.

9.2 EMD Bank Guarantee shall be valid for a period of six months from the

notified date of opening of the tender (Envelope A). In case of any

extension of tender opening date, bidder shall arrange to extend

validity of such EMD Bank Guarantee, suitably, within two weeks of

tender opening.

9.3 The EMD of all unsuccessful bidders will be returned only after the

contract has been awarded to the successful bidder (whose EMD will

be retained).

9.4 EMD shall be refunded to bidders who fail to qualify Pre-qualification

criteria or Technical qualification criteria immediately after PQ /

Technical evaluation report is accepted.

9.5 The EMD of the successful bidder will be returned only after the

successful bidder submits the performance guarantee in the

prescribed Proforma, as required in Para 10 of this section.

9.6 If the successful bidder fails to submit the performance guarantee and

fails to enter into an agreement with AAI within 30 calendar days after

the date of acceptance of P.O., the EMD amount shall be forfeited and

purchase order shall be cancelled.

9.7 No interest or any other expenses, whatsoever, will be payable by AAI

on the EMD in any manner.

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10 Performance Bank Guarantee

10.1 The bidder, whose tender is accepted, shall within 30 calendar days of

the issue of letter of acceptance of the bid, shall submit unqualified

performance guarantee of 10% (Ten Per Cent) of the total price to AAI

in the form of an irrevocable and unconditional bank guarantee on a

Nationalized / Scheduled Bank, as per Proforma attached as

Annexure - IV.

10.2 In case, the successful bidder fails to submit the PBG within stipulated

period, interest @ 12% p.a. on Performance Guarantee amount would

be levied (non-refundable) for delayed period of submission and shall

be deducted from EMD.

In case successful bidder fails to submit performance bank guarantee

within 60 days, AAI reserves the right to forfeit EMD and cancel the

order.

10.3 The Performance Guarantee shall be valid for 6 months beyond the

warranty period as per Para 16 of Section-B or shall remain valid as

per provisional extension granted by AAI. If the agency fails to extend

the validity of the Performance Guarantee, the same shall be en-

cashed by AAI with or without notice.

10.4 The guarantee amount shall be payable to AAI without any condition

whatsoever and the guarantee shall be irrevocable.

10.5 The performance guarantee shall be deemed to govern the following

guarantees from the successful bidder, in addition to the other

provisions of the guarantee.

10.6 The successful and satisfactory operation of the equipment supplied

in accordance with the specifications and other relevant documents.

10.7 The equipment supplied shall be free from all defects of design,

material and workmanship and upon written notice from AAI, the

successful bidder shall fully remedy, free of expenses to AAI, all such

defects as developed under the normal use of the said equipment

within the period of guarantee/warranty.

10.8 The performance guarantee is intended to secure the performance of

the entire equipment. However, it is not to be construed as limiting the

damages stipulated in any other clause.

10.9 The performance guarantee will be returned to the successful bidder

at the end of the period of liability without interest.

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11 Force Majeure

11.1. AAI may grant an extension of time limit set for the completion of the

work in case the timely completion of the work is delayed by force

majeure beyond the contractor's control, subject to what is stated in

the following sub paragraphs and to the procedures detailed their in

being followed. Force majeure is defined as an event of effect that

cannot reasonably be anticipated such as acts of God (like

earthquakes, floods, storms etc.), acts of states, the direct and indirect

consequences of wars (declared or un declared), hostilities, national

emergencies, civil commotions and strikes (only those which exceed a

duration of ten continuous days) at successful Bidders factory. The

successful bidder’s right to an extension of the time limit for

completion of the work in above mentioned cases is subject to the

following procedures:

11.1.1 That within 10 days after the occurrence of a case of force

majeure but before the expiry of the stipulated date of

completion, the bidder informs the AAI in writing that the

Bidder considers himself entitled to an extension of the time

limit.

11.1.2 That the Successful Bidder produces evidence of the date of

occurrence and the duration of the force majeure in an

adequate manner by means of documents drawn up by

responsible authorities.

11.1.3 That the Successful Bidder proves that the said conditions

have actually been interfered with the carrying out of the

Contract.

11.1.4 That the Successful Bidder proves that the delay occurred is

not due to his own action or lack of action.

11.2 Apart from the extension of the time limit, force majeure does not

entitle the successful bidder for any relaxation or to any compensation

of damage or loss suffered.

12. Arbitration and Laws

12.1 Except where otherwise provided for in the contract, all questions and disputes relating to the meeting of the specifications, designs, drawings, and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works, or the execution or failure to execute the same whether arising during the progress of the work or after the completion or abandonment thereof shall be settled within thirty (30) days (or such longer period as may be mutually agreed upon) from the date that either party notifies in writing that such dispute or disagreement exists. Provided that any dispute that remains

153

unresolved shall be settled under the Rules of Indian Arbitration and

Conciliation Act, 1996, The venue of Arbitration shall be New Delhi,

India. The arbitration award shall be final and binding upon the parties

and judgment may be entered thereon, upon the application of either

party, by any court having jurisdiction.

12.2 Indian laws shall govern this contract.

13. Price :

Note : This is the most important part of procurement process and

needs to be defined very clearly in the tender document. As per the

procedure laid down by the Govt. of India & as a rule all the contracts

for purchase involving import of material from abroad should be

purchased on FOB basis. In case of the import contracts entered into

on terms other than FOB basis, a No-Objection-Certificate from the

Ministry of Surface Transport, Govt. of India is required to be obtained.

13.1 The bidder shall confirm that quoted prices shall be firm and fixed and

subject to no escalation whatsoever till the validity period of the tender.

13.2 Prices shall be asked to be quoted upto FOB/High Sea basis & Indian

supplies from Ex-works basis or the supplier shall be asked to quote the

prices upto destination/DDU if approved by tender approving

authority. As per decision, suitable clause is required to be

incorporated in the Tender document

13.3 The rates shall be entered in figures as well as in words. For the

purpose of the tender, the metric system of units shall be used. In the

event of any discrepancy, the unit price quoted in words will be taken

as the correct basis. In case of E-Tender, follow the instructions

available on E-Portal.

13.4 In case of item rate tender, only rates quoted shall be considered.

Bidder shall quote the rates in figures as well as in words (In English

language only). The rates quoted in figures shall be in International

numerals and whole numbers. The amount for each item shall be

worked out and the all requisite totals given. Special care shall be taken

to write rates in figures as well as in words, and the amounts in figures

only. The Total Amount shall be written both in figures and in words. In

case of E-Tender, follow the instructions available on E-

Portal.

13.5 The rates should include patent rights, if any

13.6 That if on checks there are differences between the rates given by the

contractor in words and figures or in amount worked out by him, the

following procedures should be followed :

a) When there is a difference between the rates in figures and in

words, the rates which correspond to the amounts worked out by

the contractor, should be taken as correct.

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b) When the amount of an item is not worked out by the contractor or

it does not correspond with the rates written either in figures or in

words, then the rate quoted by the contractor in words should be

taken as correct.

c) When the rate quoted by the contractor in figures and in words

tallies but the amount is not worked out correctly, the rate quoted

by the contractor should be taken as correct and not the amount.

d) In case of percentage rate tender, the contractors are required to

quote their rates both in amount as well as in the percentage below

/ above the rates entered in the schedule. In such cases, in the

event of arithmetical error committed in working out the amount

by the contractor, the tendered percentage and not the amount

should be taken into account.

e) If agency fail to quote the rate in word & in figure and amount

(both) the same shall be assume to be included in the total

tendered amount.

13.7 For the bidders quoting in foreign currency, the conversion rate of

foreign exchange will be taken as the exchange rate on the date of

opening of tender (Envelope A ) i.e. TT Selling rate as notified in the

Economics Times on the day of opening envelopes A for the purpose of

Evaluation.

13.8 Hardware cost :

13.8.1 Overseas bidder shall indicate the cost of the imported

hardware items in foreign currency or in INR (as per tender

Condition) and cost of the item sourced from India supply item

in INR.

13.8.2 In case overseas supplier intends to supply some item from

India then bidder shall clearly indicate in his price bid, the

name of Indian supplier, cost of the item in INR along with

statutory taxes (Like Sales Tax/VAT/Excise duty etc) . Such

Payment shall be made to Indian supplier directly in INR by

AAI against the invoice produced by Indian supplier and

endorsed by Principal supplier. Purchase order to the

successful bidder shall clearly indicate the name of the Indian

supplier, cost of the items to be supplied from Indian market

with applicable taxes to be paid in INR directly to Indian

supplier. Bidder shall give undertaking that in case the Indian

supplier raises any dispute and financial claim against AAI ,

the same will be dealt by the Principal supplier at his own risk

and cost without any liability. OR payment can also be made to

Principal supplier directly but in INR on producing proof

towards payment of Sale Tax/VAT etc. provided bidder fulfills

all the requirement of Indian Bankers for flow of payment in

INR.

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13.8.3 In case, Indian supplier indents to supply items from outside

India then Indian bidder shall import the items in the name

of AAI. Indian bidder shall clearly indicate the cost of

imported item, cost of freight and insurance upto an Indian

port, custom duty on such item in INR. Under such case,

route of High Sea Sales shall be followed to avoid double

taxation (Refer Appendix-6C for high sea agreement).

AAI shall make the payment towards custom duty in the

form of CDEC under Serve From India Scheme subject to

maximum value quoted by the bidder. Any additional

custom duty shall be on account of bidder and will be

adjusted from his Invoice. Bidder will be paid in INR against

the Invoice raised by him enclosing bill of entry (as a proof of

payment of custom duty).

13.9 Software cost :

13.9.1 CNS equipments or system are classified into various

categories. One category of equipments where software is

embedded on the equipments or COTS/Package software is

supplied along with the equipment and in another category,

software is separately supplied by the supplier on CD form

specially customized for AAI which attracts different rate of

custom duty.

13.9.2 Bidders shall indicate the cost of embedded software, COTS /

Package software along with imported items as one item and

cost of imported software being supplied on CD form which is

customized for AAI, as another item, in foreign currency or in

INR.

13.9.3 Bidders shall indicate the cost of software from Indigenous

source in INR.

13.9.4 In case, overseas bidder intends to supply software from India

then they should indicate name of the Indian supplier.

Payment shall be made to Indian supplier directly in INR by

AAI against the invoice produced by Indian supplier and

endorsed by principal Supplier. Purchase order to the

successful bidder shall clearly indicate the name of the Indian

supplier. Bidder shall give undertaking that in case the Indian

supplier raises any dispute and financial claim against AAI ,

the same will be dealt by the foreign supplier at his own risk

and cost Or payment can also be made to Principal supplier

directly but in INR on production of proof towards payment of

Indian Taxes provided bidder fulfills all the requirement of

Indian Banker for flow of payment in INR.

Modify

as per

tender

condition

156

13.10 Cost of Installation, Testing and commissioning :

13.10.1 Overseas bidder shall indicate cost of installation, testing and

commissioning in foreign currency or in INR if the same is

being undertaken by the manpower employed from overseas.

13.10.2 Overseas bidder shall indicate cost of the installation,

testing & commissioning in INR if the same is being

undertaken by the manpower employed by his authorized

Indian Agent. Payment shall also be made directly to Indian

agent in INR against his Invoice indicating service Tax number

duly endorsed by Principal Supplier and AAI shall obtain the

CENVAT benefit towards service Tax.AAI shall reimburse the

Service Tax on production of Service Tax challan.

13.10.2 Overseas bidder may provide part of the services while

carrying out installation, testing and commissioning through

his authorized Indian agent and remaining part through his

own manpower employed overseas. Bidder shall clearly

indicate the cost component of services provided through his

own manpower in foreign currency or in INR or through his

Indian agent in INR separately.

13.10.3 Indian Bidder shall indicate the cost of Installation, testing and

commissioning in INR. Service Tax on such services shall be

reimbursed to supplier on production of Service Tax Challan.

13.11 Cost of Training :

13.11.1 Overseas Bidder shall quote cost of training to be imparted at

his factory premises abroad, in major foreign currency or in

INR. 13.11.2 Bidder shall quote cost of training to be imparted

in India, in foreign currency or in INR only if the same will be

imparted by the Trainers employed from overseas.

13.11.2 Bidder shall indicate cost of the training in INR if the same is

being imparted by the training faculty employed by his Indian

authorized agent. Payment shall also be made directly to

Indian agent in INR against his Invoice indicating service Tax

number duly endorsed by Principal supplier .

13.11.3 Indian bidders shall quote the cost of training to be imparted

at his factory premises or at site in INR.

13.12 Cost of Freight and Insurance :

Normally, in case of imported items the freight &

insurance shall be arranged by GM (CRSD). However,

suitable clause shall be added as per the requirement

of the project.

157

13.12.1 The bidder (foreign suppliers quoting on FOB basis) must

indicate the freight & insurance charges for shipment of

entire supply by Sea from the Port of dispatch to an Indian

Port as assigned in Annexure… Total freight and insurance

charges for entire supply must be indicated in the pricing

schedule & will be taken for the purpose of price comparison.

Wherever the supplier does not indicate the freight &

insurance charges, a flat rate of 3% of the quoted FOB price

will be added as freight & insurance charges for computing

CIF value for the purpose of ascertaining custom duty and

price comparison.

13.12.2 The Overseas bidder quoting on DDU basis must include the

freight and insurance charges for shipment of consignment by

sea from the port of dispatch to the Indian port or by AIR(If

approved by Competent Authority). In addition , his bid should

also include transportation & insurance charges in India up to

the consignee address. The charges for freight and insurance

will be paid by AAI restricted to the maximum quoted value by

the bidder.

13.12.3 Normally, the overseas freight forwarder will be assigned by

AAI as per Ministry of Surface Transport, Government of India

guidelines. Supplier shall provide the detail of each

consignment like size, gross weight etc for the purpose of

expediting information regarding name of freight forwarder

which is required to be obtained from Shipping Corporation of

India, Ministry of Surface Transport and arranging insurance.

13.12.4 However, AAI reserves the right to ask the successful bidder to

make arrangement for transporting the equipment by Sea

from the port of dispatch to an Indian Port as assigned in

consignee list, in which case, the freight and insurance

charges will be reimbursed by AAI restricted to the maximum

value quoted by the bidder.

13.12.5 In case, it is decided to obtain the delivery of items by

Air due to urgency then bidder shall be asked to quote

the price of freight and insurance by Air.

13.12.6 The Indian bidder quoting the price on ex-works basis, shall

make arrangements for transporting the equipment ex-works

to the ultimate consignee. The charges for freight and

insurance in INR will be paid by the successful bidder and will

be reimbursed by AAI subject to the maximum value quoted

by bidder.

13.12.7 In case, Successful bidder is responsible for delivering the

items upto consignee Airport, then he shall make his own

arrangement for obtaining Road permits/entry passes for

Suitable

clause

depending

upon the

tender

condition

shall be

added.

If

Freight

and

Insurance

is

arranged

by CRSD

then

cluses

shall be

modified

158

transporting the system to consignee Airport , however, AAI

will provide the requisite documents for obtaining road

permits i.e. copy of purchase order, authorization letter etc.

Nothing extra shall be paid by AAI.

13.13 Custom duty :

13.13.1 AAI will load the custom duty on the imported items under

procurement to bring uniformity in the price bids of different

bidders.

13.13.2 In case, Overseas supplier is responsible for custom clearance

or Indian supplier intends to supply some item from overseas

then the imported material shall be imported in the name of

Airports Authority of India (AAI) to avail benefits of SERVED

FROM INDIA SCHEME and insurance policy shall be in the

name of AAI. The successful bidder shall not make payment to

customs authority directly for items mentioned above, as AAI

has Customs duty entitlement certificates issued under the

“SERVED FROM INDIA SCHEME” by the Director General of

Foreign Policies under foreign trade policy act 2004-2009.

Hence, the contractor is required to make all documentation

for importing in such a way which is acceptable to Customs

Authorities for utilizing the entitlement certificates by AAI. The

amount of customs duty entitlement certificate used/ issued

under this scheme shall be deducted from contractor’s bill.

13.13.3 In case the Custom duty entitlement certificate under the

above mentioned scheme is not accepted for any reason by

the Custom Authorities, the Custom duty shall be paid by the

Contractor to the Custom Department directly. In the event of

contractor paying customs duty directly to custom

department, the contractor shall submit the proof of customs

duty paid for imported items to AAI and will be reimbursed by

AAI.

13.13.4 In case bidder is quoting the price on DDU basis and

responsible for custom clearance also, then bidder shall

indicate custom duty in his price bid. Custom duty will be

restricted to a value quoted by bidder and paid as per actual in

the form of CDEC under Serve India scheme directly by AAI.

Custom duty more than the quoted value will be adjusted from

Invoices submitted for payments. Successful bidder shall

obtain all the relevant documents from AAI fifteen days in

advance to avoid any hassles at the time getting the

consignment custom cleared. Any demurrage due to delay in

getting the consignment custom cleared shall be on account

of supplier.

Add

suitable

clause

as per

the

approval

of ED

(CNS)

159

13.13.5 Any increase or decrease of custom duty at the time of

clearance of consignment due to reclassification or

amendment to custom duty tariff will be on account of

AAI. Additional custom duty charged by Custom

Authorities due to non-inclusion of item for the purpose of

custom duty or quoting under wrong head shall be on

account of supplier.

13.14 Custom handling and clearing charges:

In case of FOB contract, Port consignee is responsibility of the custom

clearance however in case of DDU contract , successful bidder is

responsible for getting the consignment custom clear, bidder shall

indicate the custom handling and clearing charges and payment shall

also be made either to the bidder or its authorized Indian agent.

13.15 Service Tax:

13.15.1 Bidders shall quote prices exclusive of Service Tax. AAI shall

reimburse the service tax against the production of Service

Tax challan towards payment of service tax.

13.15.2 As per CENVAT Credit rules-2004 the service tax paid by

AAI for Installation, Testing & Commissioning of various

Capital equipments in India are claimed as 100 % CENVAT

credit while discharging AAI’s own service tax liability

under the head “Airport service” and will be reimbursed by

AAI against proof of payment in form of Service Tax

Challan.

13.15.3 In case, any overseas bidders not having Service Tax

number in India, is obtaining the services of Indian agent

then bidder is responsible for paying Service Tax directly

to its Indian agent and the same cannot be charged from

AAI or otherwise bidder shall indicate the name of Indian

agent with his service Tax number who will provide the

services on behalf of bidder. Bidder shall give

undertaking that in case the Indian Service Provider

raises any dispute and financial claim against AAI, the

same will be dealt by the foreign supplier at his own risk

and cost. AAI shall reimburse service Tax against the

service tax challan produced by Indian agent.

13.16 Sale Tax/VAT/Excise duty :

Bidder shall indicate the Sales Tax, VAT, Excise Duty etc. in

INR and payment shall also be made in INR either to the

bidder or its authorized Indian agent on production of proof of

the same.

Modify

as the

case

may

be

160

13.17 Octroi/Entry Tax / Loading/Unloading / Factory Acceptance

test charges etc :

13.17.1 Indian Bidder shall indicate the Octroi / Entry Tax,

Loading/Unloading charges and payment shall also be made

either to the bidder or its authorized Indian agent.

13.17.2 Bidder shall indicate the cost of Factory acceptance test in

their price bid. In case, AAI decides to waive-off Factory

acceptance test then the cost of FAT will be deducted from

overall cost of contract.”

13.18 For the prices on FOB (Overseas supplies) /Ex-works (Indian

supplies) basis following should be followed :

(i) The foreign supplier shall bid on FOB basis & Indian

Supplier shall bid on Ex-works basis.

(ii) For the Indian supplies on Ex-works basis, all the

applicable duties & taxes should be clearly stated. The

rates applicable for statutory levies such as, Excise Duty,

Sales Tax etc. must be indicated.

(iii) For supplies on FOB basis all Govt. duties leviable in India

such as Custom Duty, i/c CVD/applicable cess etc.@ ….%

shall be loaded on applicable amount (CIF amount + 1%

of CIF value as lading charges) to evaluate the financial

bids. While issuing tenders, custom duties rates

may be mentioned in the Tender and will be paid

directly by AAI.

(iv) Annexure 1 &1A shall be filled as per the Performa. No

column or row shall be omitted or left blank . Bidder shall

clearly indicate Value or NIL or Not applicable as the case

may be.

13.19 Prices quoted by the supplier shall on DDU basis :

(i) In case it is decided by ED (CNS) that bidder shall quote

the price upto destination on DDU basis for supply of

goods or SITC contract so that AAI can evaluate the

financial impact of project in total that means bidder shall

arrange custom clearance, freight and insurance upto

Indian Port through AAI nominated vessel carrier or by Air,

transportation charges within India upto consignee

Airport, loading/unloading, payment of Custom Duty/

Octroi/entry tax, obtaining road permits etc then bidder

shall fill the price Performa as shown in APPENDIX-5D

Annexure-1 & Annexure-1A to ascertain net cost to AAI as

per the instructions indicated in Appendix -5D Annexure

1B. However, the custom duty shall be paid by AAI under

serve India scheme.

only ifapproved

by ED(CNS)

only ifapproved

by ED(CNS)

161

(ii) Price quoted in the Performa (Appendix-5D Annexure-1)

shall be inclusive of cost of equipment (Hardware and

software, Training cost etc) all taxes and duties applicable

in country of origin and in India. All the overseas taxes,

overseas freight & insurance, handling charges, inland

freight and insurance, all applicable inland taxes in India

such as all components of custom duty, Excise duty , Sale

Tax, VAT, Octroi , Entry tax, work contract Tax, labor cess,

custom clearance charges etc shall be included in Sr. no.

1 of -Annexure-1 .

Price break-up of all the items shall be indicated in

Annexure-1A to ascertain the taxes duties etc. and it

shall tally with Annexure-1.

13.20 AAI shall nominate the vessel-carrier in case the supplies are through

Sea as nominated by Shipping corporation of India. Supplier has to

inform the dimension and weight of consignment well in advance so

that AAI can nominate carrier well in time.

13.21 Supplier has to send the Invoice, packing list etc at least 15 days in

advance before the shipment of consignment for the purpose of

verification to avoid any delay in custom clearance. Any discrepancy in

papers will result in delay in verifying the invoices and packing duties

and AAI shall not be responsible for such delay. Any demurrage on this

account shall be borne by successful bidder.

13.22 Supplier has to complete all the documents well in advance for the

purpose of custom clearance. AAI will arrange the DFFT Import license

and WPC clearance.

13.23 The imported material shall be imported in the name of Airports

Authority of India (AAI) to avail benefits of SERVED FROM INDIA

SCHEME and insurance policy shall be in the name of AAI.

13.24 In case of Public Sector Undertakings (Govt. of India) and SSI,

registered with NSIC under single point registration scheme entitled

for purchase preference facilities under the existing policy of Govt.

of India, necessary price break-up indicating clearly the value added

content of the manufacturer must be indicated in the pricing

schedule.

13.25 Bidder has to mention the prices strictly as per the format of the price

schedule Annexure-I. Prices quoted in Annexure-I only will be

considered for price comparison. Price break-up of all the items shall

be indicated in Annexure-1A to ascertain the taxes duties etc. and it

shall tally with Annexure-1.

To be

confirmed

162

13.26 Detailed List of deliverables – (Bill Of Quantity) with Part No., Make &

Model number of equipment and accessories offered - fully meeting

the operational and technical requirement as spelt out in Section-C of

tender shall be attached with duly filled Annexure-I. The above

detailed list of deliverables should also be submitted along with the

Technical Bid.

14 Validity of Tender :

14.1 The tender must remain valid for a minimum of 180 days from the last

date of submission of tender closing of the tender.

15 Payment Term :

15.1 Payment to the supplier shall be made in the following manner:-

15.1.1 For Foreign Supplies : (Payment through Letter of Credit.)

Letter of Credit shall be opened upon submission of PBG. In

case of foreign supply of material, AAI shall open LC for the

amount equivalent to 100 % of the quoted value quoted by

bidder against supply of imported items and services from

overseas. The LC charges shall be payable by AAI in India and

by the bidder outside India.

a) Foreign bidders quoting in foreign currency for

overseas supplies and services : Foreign bidders are

allowed to quote in foreign currency for the imported

items. For the purpose of price evaluation, conversion

rate of foreign currency prevailing on the day of opening

Envelope “A”/PQQ will be taken as a reference to bring all

the bidders at par to same currency i.e. INR. AAI will

make the payment in foreign currency as per quoted price

by the bidder in foreign currency for imported

items/services subject to any adjustment as per clauses

relating to custom duty, payments etc. However, bidder

shall quote in INR for the supplies to be made from India

and AAI shall also pay in INR for such supplies directly to

Indian supplier against his Invoice duly endorsed by

Principal supplier on receipt of items in good condition .

Payment to Indian supplier / services provider on behalf

of his Principal supplier shall be construed as full

discharge of AAI obligation to foreign supplier as per

agreement. Principal supplier has to give an undertaking

that in case the Indian Supplier raises any dispute and

financial claim against AAI , the same will be dealt by the

foreign supplier at his own risk and cost without any

liability to AAI payment can also be made to Principal

supplier directly but in INR on producing proof towards

payment of Sale Tax / VAT etc provided bidder fulfills all

the requirement of Indian banker.

163

b) Foreign bidders quoting in INR : In case, Foreign

bidders quoting in INR, then LC shall be opened in any

major convertible currency or in INR as per request of

bidder.

i) Letter of Credit opened in INR: Supplier has to

ensure that overseas banker fulfills all statutory

requirement connected with the flow of payments.

ii) Letter of Credit opened in Foreign currency : To

calculate equivalent foreign currency equivalent to

INR value quoted by bidder, the currency conversion

rate applicable on the date of opening of LC shall be

taken. The total amount payable shall be firm in Indian

rupees as per bid of the contractor. Therefore, any

fluctuation in the exchange rate shall be on the

account of Contractor in case prices are quoted in INR

for foreign supplies. However, AAI shall pay in INR for

supplies made from India

c) Payments :

1. 60% of LC amount for supply of imported items &

accessories, 100% of Overseas Freight &

Insurance and 100% custom duty (directly to

Custom Authorities) against the submission of

following documents in ORIGINAL confirming

dispatch of items.

2. Invoice + 2 copies.

3. Itemized Packing list with cost of each item + 2

copies

4. Bill of Lading or Air Way Bill (whichever is

applicable) + 2 copies as proof of dispatch of

equipment/items.

5. Certificate for Country of origin

6. Certificate of Factory Acceptance Test issued by


7. Proof of receipt of items in at consignee site for

supplies made from India in packed good

condition. (In case payment is through LC to

Principal supplier in INR)

ii) Balance amount of purchase order price for supply of

goods & accessories,100 % of local freight &

Insurance, Taxes, Installation, commissioning &

testing and Training will be paid on successful

completion of following :

(a) Installation,& commissioning

(b) Site Acceptance test

(c) Successful completion of Training against submission of

the following documents in ORIGINAL:


2. Certificate of completion of Installation, commissioning

& Training issued by authorized representative of AAI.

* Cost of the Factory Training and site training shall be

paid separately on successful completion of Training

as per the Tender condition.

Payment shall be released after adjusting any

compensation for delay which firm might have

rendered themselves liable as per provisions of

contract and applicable income tax and any applicable

deductions as per laws and purchase order.

15.1.2 For Indian Supplier :

i) 60% of purchase order price for supply of equipment

and accessories supplied from Indian indigenous source

including documentation,100% of freight and insurance,

taxes and duties against receipt of goods at site in good

condition on submission of the following documents in

ORIGINAL

a) Invoice + 2 copies

b) Itemized Packing list with cost of each item + 2

copies

c) Certificate of Factory Acceptance Test issued by


d) Proof of dispatch of equipment / items

e) Certificate of goods received at site in physically

good condition.

ii) 40% of purchase order price for supply of equipment &

accessories, 100% Installation (including cabling etc.),

commissioning and training charges, upon successful

completion of the above mentioned activities, against

submission of the following documents in ORIGINAL:

a) Certificate of completion of Installation,

commissioning and Training, issued by authorized

representative of AAI.

164

165

b) In case of supply only tenders, Certificate of

completion of training & testing, issued by


*Cost of the Factory Training and site training shall

be paid separately on successful completion of

Training as per the Tender condition.

15.1.3 For Indian indigenous items as part of Foreign

supplies :

i. For the foreign supplies part, Para 15.1.1 applies.

ii. In case of foreign supplier offers part supplies from Indian

indigenous source, 60% of purchase order price for

supply of equipment and accessories supplied from

Indian indigenous source including documentation in

INR, 100% of applicable taxes and duties on Indian

indigenous part & Freight and Insurance , against receipt

of goods at site in good condition on submission of the

following documents in original. Such payment shall be

made in INR and direct to Indian supplier. In case, bidder

ready to accept the payment in INR, the same can be

made through LC.


2. Itemized Packing list with cost of each item + 2 copies

3. Certificate of Factory Acceptance Test issued by


4. Proof of dispatch of equipment / items

5. Certificate of goods received at site in physically good

condition.

iii. 40% of purchase order price for supply of equipment &

accessories supplied from Indian indigenous source

including documentation in INR, 100% Installation

(including cabling etc.), commissioning & training

charges, upon successful completion of the above

mentioned activities, against submission of the following

documents in ORIGINAL:

1. Cert i f icate of complet ion of Instal lat ion,

commissioning and Training (of Indian indigenous

component), issued by authorized representative of

AAI.

2. In case of supply only tenders, Certificate of completion

of training, issued by authorized representative of AAI.

166

16. Guarantee/Warranty

16.1 All goods or material shall be supplied strictly in accordance with the

specifications. No deviation from such specifications of these

conditions shall be made without AAI's agreement in writing

must be obtained before any work against the order is commenced.

All materials furnished by the successful bidder pursuant to the

Order (irrespective of whether engineering/design or other

information has been furnished, reviewed or approved by AAI)

are required to be guaranteed to be of the best quality of their

respective kinds (unless otherwise specifically authorized in writing

by AAI) and shall be free from faulty design to the extent such design

is not furnished by AAI. The goods/material used by the successful

bidder and its workmanship should be of proper quality so as to fulfil in

all respects, the operating conditions and other requirements

specified in the order.

16.2 If any trouble or defect originating from the design, materials,

workmanship or operating characteristic of any materials arise at

any time prior to 12 months from successful Site Acceptance

Test & Commissioning (in case of Supply only tender, 18

months from the date of dispatch whichever is earlier, and the

bidder is notified thereof, the bidder at his own expense (including

freight, duty and customs for items sent for repair) and at no cost to

AAI, as promptly as possible make such alterations, repairs and

replacements at the site as may be necessary to permit facilitate

the functioning of the equipment in accordance with the

specifications. The warranty period of repaired or replaced goods shall

be extended for a period equal to the turn around time (out of service

period).

16.3 In the event that the materials supplied do not meet the

specifications and/or are not in accordance with the drawings,

data sheets and rectification as required at site, AAI shall inform

the bidder giving full details of deficiencies. The Bidder shall, at his

own expense, meet and agree with the representatives of AAI the

action required to correct the deficiencies and shall attend to the

deficiencies at his own expense. Replacement under warranty clause

shall be made by the supplier free of all charges at site including

freight, insurance and other incidental charges.

16.4 Successful bidder shall repair the unserviceable items failed during the

warranty period within turnaround time of 90 days (for foreign

suppliers) and 30 days (for Indian suppliers). Turnaround period is

defined as the time period between the unserviceable item received by

the supplier in factory and time when serviceable item is dispatched

from the factory. Any delay in repairing the unserviceable card shall

attract LD which shall be deducted from the performance Bank

Guarantee.

167

16.5 LD due to delay in repairing item during warranty shall be calculated

as follows:

a) (Average delay in repairing one module) is equal to number of days

of delay, beyond turn around time, in repairing unserviceable

items which became U/S during warranty period divided by total

number of items given for repairs during warranty period

b) (Value of performance Bank guarantee/300* )

c) (value to be recovered) = A X B

Maximum value of recovery shall not be more than 50% of value of

performance Bank Guarantee.

*This factor is based on deducting 1% of value of performance

bank guarantee towards average delay of 30 days

d) Remaining 50% value of Performance Bank guarantee can be

recovered towards non-performance of equipment as per tender

condition/scope of the contract. Case for such recovery shall be

initiated at least two months in advance before the expiry of

Performance Bank Guarantee by the Officer-In-Charge of station

where equipment/System is installed. Case shall be forwarded to

CHQ for recovery action by clearly indicating the non-performance

issue and the response of the supplier of the equipment/System.

Final decision on the matter will be of ED (CNS-P) in case of new

equipment and of ED (CNS-OM) in case of maintenance contracts.

16.6 AAI reserves the right to encash complete value of performance Bank

guarantee if the performance of equipment/system is not satisfactorily

without assigning any reason.

17 Operational Maintenance During Warranty Period

17.1 The contractor shall make available at least one qualified technical

staff, experienced & fully trained in operation, maintenance &

administration of the complete system, along with the required

supporting staff, necessary spares, test equipment, tools etc., at the

site everyday during the first four (4) months after the successful

conduct of Site Acceptance Testing to solve the teething problems.

(Not applicable in case of Supply only tenders).

17.2 The contractor shall replace any parts, including the supplied software

found defective during warranty period without any charges

whatsoever to AAI.

17.3 During warranty period, the contractor shall provide free replacement

of any defective spares of the equipment supplied against this work.

168

18. Factory Inspection :

18.1 Factory inspection of complete equipment shall be made by Inspectors

nominated by AAI. Their travel, boarding and lodging expenses will be

borne by AAI.

18.2 The bidder shall give 30 days written notice of readiness of any

material for the purpose of Factory Acceptance Test. Such tests shall

be to the Bidder's account.

18.3 The inspector shall as soon as possible, but not exceeding 5 working

days from the date of completion of inspection, give notice in writing

to the bidder of any deficiency in the equipment or workmanship,

which in his opinion is not in accordance with the contract. The bidder

shall give due consideration to such objections and shall carry out

repairs that may be necessary to correct the said objections. After, the

factory test has been completed at bidder’s works, the inspector shall

issue a certificate to this effect after conducting supplementary FAT

(for which the to and fro travel expenses and boarding and lodging

expenses to be borne by the bidder) as soon as possible, but not

exceeding 5 days after completion of the test.

18.4 The completion of these tests or issue of certificate by the inspector

shall not bind AAI to accept the equipment should the equipment,

after installation, be found not complying with the specifications

stipulated in the contract.

18.5 AAI will communicate in writing to the supplier, in case it does not

depute the inspector(s) for Factory Acceptance Tests and in such

case the inspection certificate, issued by the Quality Control

Department of the manufacturer will be considered for acceptance of

equipment by AAI.

18.6 The certificate issued by the Quality Control Department, complete

with all test results as contained in the FAT Document, shall be sent to

ED (CNS-Planning) immediately after receiving the advice from AAI

that no inspector is being deputed for FAT. Acceptance of this

certificate and advice for dispatch of equipment shall be issued by AAI

within 30 days of the receipt of the certificate. If no advice is received

from AAI within 30 days of receipt of certificate by them, the certificate

may be deemed accepted and equipment may be dispatched.

18.7 In case , AAI decides to waive-off Factory acceptance test then the cost

of FAT will be deducted from overall cost of contract.”

19. Site Acceptance Test (SAT) & Commissioning (Not applicable in

case of Supply only tenders)

169

19.1 It will be the responsibility of the vendor to submit the system test

procedure for conducting the post installation site acceptance testing.

The procedure submitted by the vendor should be drafted in line with

the standard practices followed in the industry and should be in

accordance with the test procedures & practices specified by the OEM.

The acceptance test procedure on approval by AAI shall become the

document for acceptance of the equipment after installation at the

site. The draft copy of system test procedure should be made available

to AAI for approval before 30 days of the schedule site acceptance

date.

19.2 The system will be commissioned after successful completion of

approved SAT, operational & maintenance training and all the works

under the scope of the tender.

19.3 Installation will be termed as completed after successful completion of

SAT.

20. Packing and Marking

20.1 All packing should be strong enough to withstand rough handling

during loading, un-loading and transporting of the packages. Fragile

articles should be packed with special precaution and should bear

the marking like ‘Fragile’, ‘Handle with care’ and 'This Side Up' etc.

20.2 All delicate surfaces of equipment/goods should be carefully protected

and painted with protective paint/compound and wrapped to prevent

rusting and damage.

20.3 Attachments and spare parts of equipment and all small pieces shall be

packed in wooden crates with adequate protection inside the crates

and wherever possible should be sent along with the major equipment.

Each item shall be provided an identification so as to identify it with the

main equipment and part number and reference number shall be

indicated.

20.4 All protrusions and threaded fittings shall be suitably protected and

openings shall be blocked by covers.

20.5 Wherever required equipment material shall be packed in polyethylene

bags and silica gel or similar dehydrating compound shall be put inside

the bags to protect the equipment. Pipes/tubes made of stainless

steel, copper etc. shall be packed in wooden crates irrespective of their

sizes. The supplier shall be held liable for all damages or breakage of

the goods attributable to defective or insufficient packing as well as

for corrosion due to insufficient protection.

20.6 On three sides and top of package, markings as desired by AAI, shall be

provided with indelible paint.

170

20.7 In case supplier is responsible for delivering the items upto site, then

the contractor shall send the goods to ultimate AAI owned user

consignee sites, in a fully packed condition as per requirement of

component/equipment and fully insured.

21. Patents, Successful Bidder's Liability & Compliance Of

Regulations

21.1 Successful bidder shall protect and fully indemnify AAI from any

claims for infringement of patents, copy right, trade mark or the like.

21.2 Successful bidder shall also protect and fully indemnify AAI from any

claims from successful bidder's workmen/employees, their heirs,

dependents, representatives etc. or from any other person(s) or

bodies/companies etc. for any act of commission or omission while

executing the order.

21.3 Successful Bidder shall be responsible for compliance with all

requirements under the laws and shall protect and indemnify AAI

completely from any claims/penalties arising out of any infringements

22. Substitution & Wrong Supplies

22.1 Unauthorized substitution or materials delivered not complying with

the description or quality or supplied in excess quantity or

rejected goods shall be taken back by the Successful Bidder at his

cost and risk.

22.2 Bidder shall not substitute any item at the time of delivery against the

item mentioned in purchase order unless the item is no longer

available in the market due to obsolesce or any other reason and OEM

issues the certificate to this effect. AAI shall accept the higher version

of item of same make and better Technical specifications if it is

approved by ED (CNS).

23. Insurance, Freight

23.1 The Indian bidder quoting the price on ex-works basis shall make

arrangements for transporting the equipment ex-works to the ultimate

consignee. The charges for freight and insurance will be paid by the

successful bidder and will be reimbursed by AAI on actual basis.

OR

23.2 The Overseas bidder quoting on DDU basis must include the freight

and insurance charges for shipment of consignment by sea from the

port of dispatch to the Indian port. In addition, his bid should also

include transportation & insurance charges in India up to the

consignee address. The charges for freight and insurance will be paid

by AAI as per the quoted value by the bidder. Bidder will make the

arrangements for obtaining road permits/entry Tax etc however,

Consignee shall provide the required documents i.e. copy of purchase

order, authorization letter etc. Nothing extra shall be paid by AAI.

Only if

Price

are

asked for

Ex-works

basis

Only if Prices

includes Inland freight

and insurance

upto consi-gnee

171

23.3 Packing lists, consignment details in terms of volume/weight, size,

number of boxes and container load etc. shall be provided by the

successful bidder well in advance so that AAI shall complete the

formalities on nominating vessel carrier well in time and arrange

insurance.

23.4 In case bidder is arranging insurance upto consignee, then bidder shall

be responsible for making insurance claims in case of damage or loss of

insured items.

23.5 All items shall be fully insured by the contractor. The cost of Insurance

and Freight shall be paid by the contractor. The documents in support

of insurance policy shall be submitted to AAI before shipment.

23.6 Normally, Freight and insurance is arranged by CRSD. Suitable clause

shall be added as per the tender requirement.

24. Dispatch of Documents :

24.1 In Case of Foreign Supplies : The successful bidder shall forward

two sets of the following documents, one each to the Executive

Director (CNS – Planning) and the port consignee (as mentioned in

Annexure – III) as soon as goods are dispatched.

a. Invoice (copy)

b. Itemized Packing list with cost of each item.(copy)

c. Proof of dispatch in the form of Bill of Lading or Air Way Bill

(whichever is applicable) (copy)

d. Certificate for Country of origin (copy)

e. Factory Acceptance Test report (copy)

24.2 In Case of Indian Supplies : The successful bidder shall forward

two sets of the following documents, one each to the Executive

Director (CNS – Planning) and the port consignee (as mentioned in

Annexure – III) as soon as goods are dispatched.

a. Invoice + 2 copies

b. Itemized Packing list with cost of each item + 2 copies

c. Certificate of Factory Acceptance Test issued by authorized

representative of AAI.

d. Proof of dispatch of equipment / items

e. Certificate of goods received at site in physically good condition

24.5 Supplier shall send Performa Invoice and packing list 15 working days

in advance for the purpose of verification before dispatch of goods.

Any descripency in invoice and packing list may attract delay in getting

the consignment custom clearance and attract demurrage charges.

Such demurrage charges shall be on account of Supplier.

ADD/Modify, if DDU

If desiredby AAI

If F&I is tobe arranged

by CRSD

172

25. TAXES, PERMITS AND LICENCES

25.1 Bidder shall be liable to pay any and all non-Indian taxes, duties, levies,

lawfully assessed against AAI or bidder in pursuance of the contract. In

addition, bidder shall be responsible for payment of all Indian duties,

levies and taxes lawfully assessed against bidder for both corporate

and personal Income and also all other taxes etc. relevant and

applicable in respect of his property. Successful bidder shall arrange

the Tax withholding order well in advance before claiming payment

otherwise AAI will deduct the applicable tax at source as per prevailing

rules.

25.2 Under the supplies or SITC contract, supplier shall be responsible for

paying all Indian Taxes including income Tax on the team working in

India for supervising of the installation, lawfully assessed against the

supplier for both corporate and personal income. Purchaser shall have

right to deduct such Taxes, duties at source, subject to applicable

withholding tax as may be levied by the Government of India.

25.3 Any increase or decrease of custom duty at the time of clearance of

consignment due to reclassification or amendment to custom duty

tariff will be on account of AAI. Any additional custom duty due to non-

inclusion of item for the purpose of custom duty or quoting custom

duty under wrong head shall be on account of supplier. AAI shall not

pay anything extra on account of custom duty due to non-inclusion of

any item for the purpose of calculating custom duty in Annexure-1A.

25.4 Price break-up of the consolidated quoted price in Annexure-1 is

required to be shown in Annexure-1A. Bidder shall indicate rate of

tax (Sales Tax/Excise Tax/VAT/CST or any statutory taxes etc), for the

purpose of making claim towards increase and decrease in statutory

taxes. In case , bidder has quoted the flat value towards taxes in

Annexure—1A then AAI will not pay any claim towards increase in

statutory Taxes.

25.5 Successful bidder is required to produce Government of India

notification towards taxes prevailing at the time of opening Envelope

“A” versus time of supply of the items while seeking claim towards

increase in statutory taxes in India/State of India

25.6 In case no payment is claimed by the bidder towards increase in

statutory taxes, a certificate/undertaking is required to be given by

bidder that statutory tax has not decreased during the period between

date of opening envelope “A” & date of supply of the items. Any

decrease in statutory taxes between the above said period shall be

passed to AAI while claiming payments

25.7 In case supplies are delayed for reasons attributed to the suppliers, the

increase rate of statutory taxes shall be borne by the supplier.

However, any benefit accruing due to decrease in statutory taxes shall

be passed on to AAI.

173

25.8 In case, the Contract is on DDU basis, then suppler shall be responsible

for obtaining withholding Tax order from the Tax authorities in India

within 30 days from effective date of contract

26. Miscellaneous

26.1. In addition to the above any other information / description, the

bidders may wish to provide, like the features / performance figures

specified/indicated should be with supporting documents /

calculations. All figures indicated by the bidders must be fully qualified

and subject to co-ordinated performance.

26.2. AAI reserves the right to change the quantity to be supplied to the

extent to ± 25% of the tendered quantity or part thereof, indicated in

Annexure-I, at the time of placement of purchase order.

26.3. AAI reserves the right to place repeat order, within validity of

contract period i.e expiry of warranty as mentioned in

contract, not exceeding 50% the quantity of the original order.

The terms and conditions given under Section B - General Information

and Guidelines are hereby complied and agreed.

Signature of Bidder

Name : ….…......………………………….

Telephone : ......………………………….

Fax : ……......…………………………......

E-mail : ……......…………………………..

Stamp : ……......…………………………..

174

ANNEXURE – 1

PRICE SCHEDULE for SITC project - (Name of the Project)

S. No. Description. Total Price

1. Gross total cost “X”

2 *Service tax if only having a valid service

Tx number in India ( As included in SL 1)

3 NET COST TO AAI (1 minus 2)

(TOTAL …………………………………………………………………………. ONLY)

Note : Service Tax for services provided in India shall be quoted by only

those bidders having valid service Tax number registered in India

otherwise NIL value shall be indicated by other bidders at Sr. No. 2 above

and Sr. No. 8 of Annexure 1A.

SECTION – C : OPERATIONAL & TECHNICAL REQUIREMENTS

175

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176

Annexure-1B

Instructions to fill Annexure 1 & 1A

1. Prices shall be quoted both in figures as well as in words.

2. Complete List of deliverables – (Bill of Quantity) with Part No., Make & Model number of

equipment and accessories fully meeting the operational and technical requirement as

spelt out in Section-C of tender shall also be provided by the tenderer from overseas or

from Indian source.

3. Taxes & Duties break up for bids in Indian Rupees /Foreign Currency shall be indicated in

Annexure-1A

4. Normal sales tax rates should be quoted. No concessional forms such as form C or D will

be supplied.

5. Prices are to be mentioned strictly as per the format above and shall not include any

other head. Prices shall be quoted on FOB basis for foreign supplies or on Ex-works basis

for the Indian supplies. (In case of FOB supply tender)

OR

For SITC contract or supply of equipment upto consignee site where supplier is

responsible for getting the consignment custom cleared, prices shall be quoted up to

destination Airport/site including Overseas freight & Insurance (in foreign currency) and

In-country transportation charges, Custom duty, Custom clearance charges,

Octroi/entry taxes, sales Tax/VAT, Excise duty i.e. inclusive of all taxes and

loading/unloading etc. in INR (In case of SITC & Supply upto site contract where

supplier is responsible for custom clearance also)

5.1 Any increase or decrease in custom duty at the time clearance of consignment due to

reclassification or amendment to custom tariff will be to the account of AAI.

5.2 Custom duty will be paid as per actual in form of CDEC under Serve India Scheme.

6. In case bidder is not indicating rate of statutory taxes as asked for in column 6 & 7 but

fills the flat amount in column 6 & 7 then no deviation in statutory tax will be allowed at

the time of supply due to increase or decrease in statutory taxes. In case , bidder has

quoted the flat value towards taxes then AAI will not pay any claim towards increase in

statutory Taxes. Bidder is required to produce Government of India notification towards

taxes prevailing at the time of opening Envelope “A” versus time of supply of the items

while seeking claim towards increase in statutory taxes in India/State of India. In case

no extra payment is claimed by the bidder towards increase in statutory taxes, a

certificate/undertaking is required to be given by bidder that statutory tax has not

decreased during the period between date of opening envelope “A” & date of supply of

INSTRUCTION TO FILL PRICE BID

177

the items. Any decrease in statutory taxes between the above said period shall be

passed to AAI while claiming payments. If supplies are delayed for reasons attributed to

the suppliers, the increase rate of statutory taxes shall be borne by the supplier.

However, any benefit accruing due to decrease in statutory taxes shall be passed on to

AAI

7. Service Tax shall be charged/indicated by only those bidders who are having valid

service tax number in India, at Sr. no. 8 of Annexure 1A on the value of services indicated

at Sr. No. 5 & 6 of Annexure 1A in INR and same shall be deducted from Sr. No. 2 of

Annexure 1 for calculating “NET Cost to AAI otherwise NIL value shall be indicated in

Sr. no. 8 of Annexure 1A AAI shall calculate the Service Tax on the value of services

rendered in India i.e. value indicated in Sr. No 5 & 6 in INR and deposit to Govt. of India

and obtain CENVAT benefit.

8. Overseas supplier obtaining the services from their Indian agent for SITC work shall pay

service Tax directly to them and AAI shall not pay the service tax for third party.

However, Overseas bidder shall indicate cost component of services intends to be

provided through his Indian agent and name of the Indian agent. In that case, AAI shall

make direct payment to his Indian agent and reimburse the service Tax component on

production of proof of service tax payment.

9. Bidders quoting in foreign currency, shall quote price bid in US Dollars / Pound Sterling /

Euro. The rate of foreign exchange (TT selling rate as notified in the Economics Times

on the day of opening of tenders envelop A ) will be taken as the foreign exchange rate

on date of opening of tender (Envelope A ) for the purpose of evaluation.

10. Bid shall be converted into INR for the purpose of evaluation. Prices indicated in

Annexure-1 “X” shall tally with Annexure-1A “X”.

178

Annexure – 2A

(LRUs / PCBs / MODULES)

S. Spares Description Make/ Part Vendor Unit Price

No. No.

In Figure In Words

1.

2.

3.

4.

&

So

On

…….

COMPREHENSIVE LIST OF SPARES

179

Annexure -2B


S. Spares Make/ Vendor Qty. in Qty. Unit Total Price

No. Description Part use in as Price

No. proposed spare In In

system Figure Words

1.

2.

3.

4.

&

So

On

LIST OF CRITICAL SPARES

180

Annexure -2C


S. Spares Make/ Vendor Qty. in Qty. Unit Total Price

No. Description Part use in as Price

No. proposed spare In In

system Figure Words

1.

2.

3.

4.

&

So

On

LIST OF RECOMMENDED SPARES

181

Annexure - III

Name & Full Address of Port Consignee:

List of Airports & Address of In-Charge

PORT CONSIGNEE

LIST OF INSTILLATION SITES (AIRPORTS)

182

Annexure – IV

In consideration of the Chairman, Airports Authority of India [hereinafter called ”AAI”]

having offered to accept the terms and conditions of the proposed agreement between

................................. and ........................................ [here-in-after called “the said

Contractor(s)”] for the works ..............................................[here-in-after called “the

said agreement”] vide Order no. ................................. Dated .................................,

having agreed to production of irrevocable Bank Guarantee for Rs. ........................

(Rupees ................................................ only) as a security / guarantee from the

contractor(s) for compliance of his obligations in accordance with the terms and

conditions in the said agreement.

We ................................. (indicate the name of the Bank) [hereinafter referred to as

“the Bank”] hereby undertake to pay to the Chairman, AAI an amount not exceeding

Rs. ........................ (Rupees.......................................... only) on demand by AAI.

2. We ................................. (indicate the name of the Bank) do hereby undertake to pay

the amounts due and payable under this Guarantee without any demure, merely on a

demand from AAI stating that the amount claimed is required to meet the recoveries

due or likely to be due from the said contractor(s). Any such demand made on the Bank

shall be conclusive as regards the amount due and payable by the Bank under this

Guarantee. However, our liability under this guarantee shall be restricted to an amount

not exceeding Rs. ...................... (Rupees ......................................................

............................only).

3. We, the said bank further undertake to pay to the Chairman, AAI any money so

demanded notwithstanding any dispute or disputes raised by the contractor (s) i n

any suit or proceeding pending before any court or tribunal relating thereto, our liability

under this present being absolute and unequivocal.

4. The payment so made by us under this bond shall be a valid discharge of our liability for

payment there under and the contractor(s) shall have no claim against us for making

such payment. We .................................................. (indicate the name of the bank)

further agree that the guarantee herein contained shall remain in full force and effect

during the period that would be taken for the performance of the said agreement and

that it shall continue to be enforceable till all the dues of AAI under or by virtue of the

said agreement have been fully paid and its claims satisfied or discharged or till Project-

in-charge on behalf of AAI certified that the terms and conditions of the said agreement

have been fully and properly carried out by the said contractor(s) and accordingly

discharges this guarantee.

PROFORMA FOR PERFORMANCE BANK GUARANTEE

183

5. We ................................. (indicate the name of the bank) further agree with AAI that

AAI shall have the fullest liberty without our consent and without effecting in any

manner our obligations hereunder to vary any of terms and conditions of the said

agreement or to

extend time of performance by the said contractor(s) from time to time or to postpone

for any time or from time to time any of the powers exercisable by AAI against the said

contractor(s) and to forbear or enforce any of the terms and conditions relating to the

said agreement and we shall not be relived from our liability by reason of any such

variation, or extension being granted to the said contractor(s) or for any forbearance,

act or omission on the part of AAI or any indulgence by the AAI to the said contractor(s)

or by any such matter or thing whatsoever which under the law relating to sureties

would, but for this provision, have effect so relieving us.

This guarantee shall not be discharged due to the change in the constitution of the Bank

or the contractor(s).

6. We ................................. (indicate the name of the bank) lastly undertake not to

revoke this guarantee except with the previous consent of AAI in writing

7. This guarantee shall be valid upto ..................... unless extended on demand by AAI.

Notwithstanding anything mentioned above, our liability against this guarantee is

restricted to Rs. ........................ (Rupees ............................................... only) and

unless a claim in writing is lodged with us within six months of the date of expiry or the

extended date of expiry of this guarantee all our liabilities under this guarantee shall

stand discharge

8. d.

Dated the .............. (day) of .............. (Month), .............. (Year)

For ................................................. (indicate the name of bank).

184

Annexure – V

[TO BE SUBMITTED IN ENVELOPE ‘A’ ALONG WITH EMD] Note: This duly

filled application and undertaking shall be enclosed in the Envelope, without

which the tender shall be summarily rejected].

To,



Rajiv Gandhi Bhawan,

Safdarjung Airport,


Sub: Submission of Tender for [SITC consoles for ATS Automation system)

Sir,

Having examined the conditions of contract and specifications including addenda,

I/we, the undersigned, offer to undertake SITC of consoles for ATS Automation

system at airports in conformity with the specifications, terms & conditions of

Tender.

i) I/We agree to abide by the terms and provisions of the said conditions of the

contract and provisions contained in the notice inviting tender. I/We hereby

unconditionally accept(s) the tender conditions of AAI’s tender documents in its

entirety for the above work. It is certified that I/we have not stipulated any

condition(s) in our tender offer. In case any condition(s) are found in our tender

offer violated after opening tender, I/We agree that the tender shall be rejected

and AAI shall without prejudice to any other right or remedy be at liberty to forfeit

the EMD absolutely.

ii) I/We hereby submit the earnest money of [Rs. ....................../ USD ......................]

for the Tender for the above mentioned work in the form of demand draft/EMD Bank

Guarantee.

iii) I/We hereby submit the Integrity Pact in the prescribed format(Annexure –VII), duly

signed by the authorized signatory of the bidder.

iv) Bid submitted by us is properly sealed and prepared so as to prevent any subsequent

alteration and replacement.

v) That, I/We declare that I/we have not paid and shall not pay any bribe to any officer of

AAI for awarding this contract at any stage during its execution or at the time of

payment of bills, and further if any officer of AAI asks for bribe/gratification, I shall

immediately report it to the Appropriate Authority in AAI.

PROFORMA FOR SUBMITTING ELIGIBILITY REQUIREMENT AND UNDERTAKING

185

vi) That, I/We undertake that AAI’s tender document shall form part of contract agreement.

We understand that you are not bound to accept the lowest or any bid, you shall receive.

Thanking you

Yours faithfully

Dated:

Signature of Bidder

Name: ...........................................

Telephone: ....................................

Fax/Email/Stamp.............................

Witness ...........................................

Signature .........................................

Address ...........................................

Enclosures :

a) ..............................................

b) ..............................................

186

Annexure – VI

(On Non-judicial stamp paper of Rs. 100.00)

The Chairman,


CHQ, Rajiv Gandhi Bhavan,

Safdarjung Airport,

New Delhi – 110 003,

INDIA

Dear Sir,

We ................................. (full name of the banker) hereby refer to the tender for

........................................... (fill in the name of work) between the Airports Authority

of India as purchaser and M/s. ................................................................. (fill in the

name of bidder) as bidder providing in substance for the provision for

.................................................... as particularised in said tender, to which specific

reference is made. Under the terms of said tender, the bidder is required to provide a

bank guarantee in a form acceptable to the purchaser for the amount of US$

.................. on account of EMD.

In view of the foregoing and pursuant to the terms of the said tender, which tender is

referred to and made a part thereof as fully and to the same extent as if copied at length

hereon, we hereby absolutely and unconditionally guarantee to the purchaser,

performance of the terms and conditions of the said tender. The guarantee shall be

construed as an absolute, unconditional and direct guarantee of the performance of the

tender without regard to the validity, regularity or enforceability of any obligation of the

parties to the tender.

The purchaser shall be entitled to enforce this guarantee without being obliged to

resort initially to any other security or to any other remedy to enforce any of the

obligations herein guaranteed any shall pursue any or all of its remedies at one or at

different times. Upon default of the tender, we agree to pay to the purchaser on

demand and without demur the sum of US$ ..................... or any part thereof, upon

presentation of a written statement by the purchaser that the amount of said

demand represents damages due from the bidder to the purchaser by virtue of

breach of performance by the bidder under the terms of the aforesaid tender. The

determination of the fact of breach and the amount of damages sustained and or

liability under the guarantee shall be in the sole discretion of the purchaser whose

decision shall be conclusive and binding on the guarantor.

PROFORMA FOR EMD - BANK GUARANTEE

187

It is mutually agreed that the purchaser shall have the fullest liberty without affecting in

any manner our obligation hereunder with or without our consent to vary any of the

terms of the said tender or to extend the time for performance by the bidder, from time

to time any of the powers exercisable by the purchaser against the tender and either to

forebear or on force any of the terms and conditions relating to the said tender and we

shall not be relieved from our liability by reasons of any variation of any extension being

granted to the tender or for any forbearance act or commission on the part of the

purchaser or any indulgence by the purchaser to the bidder or by any such matter or

thing whatsoever which under the law relating to the sureties would but for this

provision have effect of so relieving our obligation.

This guarantee is confirmed and irrevocable and shall remain in effect until

.......................................... (the validity shall be six months from the date

of opening of Envelope “A”) and such extended periods which shall be mutually

agreed to. We hereby expressly waive notice of any said extension of the time for

performance and alternation or change in any of the terms and conditions of the said

tender.

Very truly yours,

..................................................

(Authorized Signatory of the Bank)

188

PROFORMA FOR EMD - BANK GUARANTEE (CONTD….)

(Letter of understanding from the Depositor to Bank to be submitted along

with EMD to Airports Authority of India)

The Branch Manager,

....................................... Bank,

...............................................,

Sub. : My/Our Bank Guarantee bearing no. ....................... dated

for…...................……. amount ........................ issued in favour of

Airports Authority of India

Sir,

The subject Bank Guarantee is obtained from your branch for the purpose of

Earnest Money on account of contract awarded / to be awarded by M/s AAI

to me /us.

I hereby authorize the Airports Authority of India in whose favour the deposit is made

to close the subject Bank Guarantee before maturity/on maturity towards

adjustment of dues without any reference / consent / notice from me our side and the

bank is fully discharged by making the payment to Airports Authority of India

Signature of the Depositor

Place :

Date:

189

Annexure – VII

This Pact made this ........... day of ........... between Airports Authority of India, a body

corporate constituted by the Central Government under the Airports Authority of India

Act, 1994 and having its Corporate Office at Rajiv Gandhi Bhawan, New Delhi, and

offices at ............................................ in India, hereinafter called the Authority

(which term shall unless excluded by or is repugnant to the context, be deemed to

include its Chairman, or Member, Executive Directors, Airport Directors, Officers or any

of them specified by the Chairman in this behalf, and shall also include its successors

and assigns) of the one part.

AND

............................ represented by .................................. of the other part,

hereinafter called the “Bidder/Contractor” (which term shall unless excluded by or is

repugnant to the context be deemed to include its heirs, representatives, successors

and assigns of the Bidder/Contractor) WHEREAS the Authority intends to award,

under la id down organizat ional procedures, tender/contract for

.................................. The Authority, while discharging its functions on business

principles, values proper compliance with all relevant laws and regulations, and the

principles of natural justice, ethics, equity, fairness and transparency in its

relations with the Bidders / Contractors;

WHEREAS the Authority is desirous to make its business mechanism more transparent,

thus to ensure strict adherence of the aforesaid objectives/goals, the Authority hereby

adopts the instrument developed by the renowned international non-governmental

organization “Transparency International” (TI) headquartered in Berlin (Germany). The

Authority will appoint an External Independent Monitor (EIM) who will monitor the tender

process and the execution of the contract for compliance with the principles mentioned

above;

AND WHEREAS the Bidder is submitting a tender to the Authority for

............................. in response to the NIT (Notice Inviting Tender) dated .........../

Contractor is signing the contract for execution of ............................................

NOW, therefore, this indenture witness herewith :

SECTION 1. Commitment of the Authority

1.1. That the Authority commits itself to take all measures necessary to prevent corruption

and to observe the following principles:

i. No employee of the Authority, 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 him/her or third person, any material or immaterial benefit,

which he/she is not legally entitled to.

INTEGRITY PACT

190

ii. The Authority will, during the tender process treat all Bidders with equity and

reason. The Authority will in particular, before and during the tender process,

provide to all Bidders the same information and will not provide to any Bidder

confidential / additional information through which the Bidder could obtain an

advantage in relation to the tender process or the contract execution.

iii. The Authority will take all measures to exclude all known prejudiced persons from

the tender process.

1.2. That if the Authority receives information on the conduct of any of its employee which is

a criminal offence under the relevant anti-corruption laws of India, or if there be a

substantive suspicion in this regard, the Authority will inform its Vigilance Department to

initiate appropriate action.

SECTION 2. Commitments of the Bidder/Contractor

2.1. That the Bidder/Contractor commits itself to take all measures necessary to prevent

corruption. Further he commits himself to observe the following principles during his

participation in the tender process and during the contract execution:

i. The Bidder/Contractor has not offered, promised or given and will not, directly or

through any other person or firm, offer, promise or give to any of the Authority’s

employees involved in the tender process or the execution of the contract or to any

third person, any material or immaterial 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.

ii. The Bidder/Contractor has not entered and 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 cartelization in the bidding process.

iii. The Bidder/Contractor has not committed and will not commit any offence under the

relevant Anti-Corruption Laws of India. Further the Bidder/Contractor will not use

improperly, for purposes of competition or personal gain, or pass on to others, any

information or document provided by the Authority as part of the business

relationship, regarding plans, technical proposals and business details, including

information contained or transmitted electronically.

iv. The Bidder/Contractor 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.

v. The Bidder/Contractor will inform the External Independent Monitor:

a) If he receives demand for an illegal/undue payment/benefit.

b) If he comes to know of any unethical or illegal payment/benefit

c) If he makes any payment to any Authority’s associate(s).

191

vi. The Bidder(s)/Contractor(s) will not submit a frivolous/ false/bogus complaint with

malafide intention.

2.2 That the Bidder/Contractor will not instigate any person to commit offences mentioned

in Clause 2.1 above or be an accessory to such offences.

SECTION 3. Disqualification from tender process and exclusion from future

contracts

3.1. That if the Bidder(s)/ Contractor, during tender process or before the award of the

contract or during execution of the contract/work has committed a transgression in

violation of section 2 or in any other form such as to put his reliability or credibility as

Bidder(s)/ Contractor into question, the Authority is entitled to disqualify him from the

tender process or to terminate the contract for such reason.

3.2. That if the Bidder/Contractor against whom any action in terms of Section 3.1 above has

already been taken in any other tender/contract process, again commits a transgression

in violation of section 2 such as to put his reliability or credibility into question, the

Authority is entitled also to debar the Bidder/Contractor from future tender/contract

processes. The imposition and duration of the debarment will be determined by the

severity of the transgression. The severity will be determined taking into consideration

the circumstances of the case, in particular the number of transgression, the position of

the transgressor within the company hierarchy of the bidder and the amount of the

damage. The debarment will be imposed for a period minimum of six months and

maximum of five years.

3.3. That the Bidder/Contractor accepts and undertakes to respect and uphold the

Authority’s absolute right to resort to and impose such debarment and further accepts

and undertakes not to challenge or question such debarment on any ground.

3.4. That if the Bidder/Contractor applies to the Authority for premature revocation of the

debarment and proves to the satisfaction of the Authority that he has installed a suitable

and effective corruption prevention system and also restored/recouped the damage, if

any, caused by him, the Authority may, if thinks fit, revoke the debarment prematurely

considering the facts and circumstances of the case, and the documents/evidence

adduced by the Bidder/Contractor for first time default.

3.5. That a transgression is considered to have occurred if the Authority is fully satisfied with

the available documents and evidence submitted along-with External Independent

Monitor’s recommendations/ suggestions that no reasonable doubt is possible in the

matter.

SECTION 4. Previous transgression

4.1. That the Bidder/Contractor declares that no previous transgression occurred in the last

five years with any other company in any country or with any other Public Sector

Enterprise in India conforming to the TI approach that led to debarment/

disqualification and could justify his exclusion from the tender process.

192

4.2. That if the Bidder/Contractor makes incorrect statement on the subject, he can be

disqualified from the tender process or the contract, if already awarded can be

terminated for such reason and he may be considered for debarment for future tender

/contract processes.

SECTION 5. Compensation for damages

5.1. That if the Authority has disqualified/debarred the Bidder from the tender process prior

to the award under section 3 or 4, the Authority is entitled to forfeit the earnest money

deposited/bid security.

5.2. That if the Authority has terminated the contract under section 3 or 4, or if the Authority

is entitled to terminate the contract under section 3 or 4, the Authority shall be entitled

to demand and recover from the contractor damages equivalent to 5% of the contract

value or the amount equivalent to security deposit or performance bank guarantee,

whichever is higher.

5.3. That the Bidder/Contractor agrees and undertakes to pay the said amount without

protest or demur subject only to condition that if the Bidder/Contractor can prove and

establish to the satisfaction of the Authority that the disqualification/ debarment of the

bidder from the tender process or the termination of the contract after award of the

contract has caused no damage to the Authority.

SECTION 6. Equal treatment of all Bidders/Contractors/Sub-contractors/

associates

6.1. That the Bidder/Contractor undertakes to get this Pact signed by the sub-contractor(s)

and associate(s) whose value of the work contribution exceeds Rs. 5 (Five) crores, and

to submit the same to the Authority along-with the tender document/ contract before

contract signing.

6.2. That sub-contractor(s)/ associate(s) engaged by the Contractor, with the approval of

the Authority after signing of the contract, and whose value of the work contribution

exceeds Rs.5 (Five) crores will be required to sign this Pact by the Contractor, and the

same will be submitted to the Authority before doing/ performing any act/ function by

such sub-contractor(s)/ associate(s) in relation to the contract/ work.

6.3 That the Authority will disqualify from the tender process all Bidder(s) who do not sign

this Pact or violate its provisions or fails to get this Pact signed in terms of section 6.1 or

6.2 above.

6.4 That if the Contractor(s) does/ do not sign this Pact or violate its provisions or fails to get

this Pact signed in terms of section 6.1 or 6.2 above, Authority will terminate the

contract and initiate appropriate action against such Contractor(s).

SECTION 7. Allegations against bidders/contractors/sub-contractors/

associates.

7.1. That if the Authority receives any information of conduct of a Bidder, Contractor or Sub-

contractor, or of an employee or a representative or an associates of a Bidder, Contractor

193

or Sub-contractor which constitutes corruption, or if the Authority has substantive

suspicion in this regard, the Authority will inform the Vigilance Department for

appropriate action.

SECTION 8. External Independent Monitor(s), number depending on the size

of the contract to be decided by the Chairman of the Authority.

8.1. That the Authority will appoint competent and credible External Independent Monitor(s)

for this Pact. The task of the Monitor is to review independently and objectively, whether

and to what extent the parties comply with the obligations under this Pact. He will also

enquire into any complaint alleging transgression of any provision of this Pact made by

the Bidder, Contractor or Authority.

8.2. That the Monitor is not subject to any instructions by the representatives of the parties

and would perform his functions neutrally and independently. He will report to the

Chairperson of the Board of the Authority.

8.3. That the Bidder/Contractor accepts that the Monitor has the right to access without

restriction to all project documentation of the Authority including that provided by the

Bidder/Contractor. The Bidder/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 sub-contractors and associates. The

Monitor is under obligation to treat the information and documents of the Authority and

Bidder/Contractor/Sub-Contractors/ Associates with confidentiality.

8.4. That the Authority 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 Authority and the Contractor/Bidder. The

parties offer to the Monitor the option to participate in such meetings.

8.5. That as soon as the Monitor notices, or believes to notice, a violation of this Pact, he will

so inform the management of the Authority and request the management to

discontinue or heal the violation, or to take other relevant action. The Monitor can in this

regard submit his recommendations/ suggestions. 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.

8.6. That the Monitor will submit a written report to the Chairperson of the Board of the

Authority within 2 weeks from the date of reference or intimation to him by the Authority

and, should the occasion arise, submit proposals for correcting problematic situations.

8.7. That if the Monitor has reported to the Chairperson of the Board a substantiated

suspicion of an offence under relevant Anti-Corruption Laws of India and the

Chairperson has not, within reasonable time, taken visible action to proceed against

such offence or reported it to the Vigilance Department, the Monitor may also transmit

this information directly to the Central Vigilance Commissioner, Government of India.

8.8. The word ‘Monitor’ would include singular and plural.

194

SECTION 9. Pact duration.

9.1. That this Pact comes into force when both the parties have signed it. It expires for the

Contractor 12 months after the final payment under the respective contract, and for all

other Bidders 3 months after the contract is awarded.

9.2. That if any claim is made/lodged during this period, the same shall be binding and

continue to be valid despite the lapse of this Pact as specified herein before, unless it is

discharged/determined by Chairman of the Authority.

SECTION 10. Miscellaneous provisions.

10.1. That this Pact is subject to Indian Laws. Place of performance and jurisdiction is the

Corporate Headquarter/the Regional Headquarter/offices of the Authority, as

applicable.

10.2. That the changes and supplements as well as termination notices need to be made in

writing.

10.3. That if the Contractor/Bidder is a partnership or a consortium, this Pact must be signed

by all the partners and consortium members, or their authorized representatives.

10.4. That should one or several provisions of this Pact turn out to be invalid, the remainder of

this Pact remains valid. In this case the parties will strive to come to an Agreement to

their original intentions.

....................................... .........................................................

For the Authority For the Bidder/Contractor

Place :.............. Witness 1: .......................................

Date ................. Witness 2: .......................................

195

APPENDIX 5-E

AIRPORTS AUTHORITY OF INDIADIRECTORATE OF CNS-PLANNING

Ref No.: Dated:

Sub: Implementation of Integrity pact in AAI: Name of EIM

1. Airport :

2. Project work :

3. Estimated cost :

4. PDC :

5. Remarks :

Brief report on the project is enclosed

ED (PMQA) [signature of ED (CNS-P)]

PERFORMA FOR REQUESTING NOMINATION FOR EIM

196

APPENDIX 6-A

Part-I, submitted in a separate sealed Envelope A marked "Part-I Eligibility

Requirements” will contain:

1. Financial turnover : Firm (Bidder) shall have annualized average turnover of at least

(30% of estimated cost either in INR or equivalent financial currency) in any of the last

three financial years, ending 31st March or 31st Dec of previous year as per the practice

prevailing in the country of the firm. As a proof of financial turnover, copy of abidged

Balance Sheet along with Profit and Loss account of the firm (bidder) for last three years

shall be submitted.

2. Experience : Bidder shall have successfully executed orders of the similar equipment/

system either in terms of value or quantity, in line with any of the following ,in last seven

years:

a) One order of value more than or equivalent to ….. [value 80 % of estimated cost]

b) Two orders each of value more than or equivalent to ….. [value 50 % of estimated

cost]

c) Three orders each of value more than or equivalent to ….. [value 40 % of estimated

cost

d) One order consisting of minimum ….. [quantity 80 % of the systems/equipments

being procured]

e) Two order consisting of minimum ….. [quantity 50 % of the systems/equipments

being procured]

f) Three orders consisting of minimum ….. [quantity 40 % of the systems/equipments

being procured]

* the definition of system is hardware and associated software to meet

desired functionality as per scope of work.

3. Under different circumstances, different requirements can be stipulated in the PQN/

Tender documents with the approval of tender approving authority.

4. Earnest Money Deposit (EMD) or proof of exemption for the EMD.

5. Valid Sales Tax Registration certificate. (for Indian bidders)

SAMPLE ELIGIBILITY CRITERIA

6. The bidder should be Original Equipment Manufacturer (OEM) or its authorized


7. In the case of System Integrator or authorized representative of OEM, credentials



197

8. In case of OEM, Proof of being Original Equipment Manufacturer (OEM)

9. In case of authorized agent of OEM, current authorization from the OEM authorizing

him as its authorize agent. Copy of detailed and valid agreement between OEM and

authorized agent stating clearly that the OEM shall stand for warranty/guarantee, spare

and maintenance support for the full life cycle of the equipment (estimated to be 15

years) for the products sold by the said authorized agent to Airports Authority of India.

10. In case of System Integrator, current authorization from OEM(s) declaring the

tenderer as System Integrator for its product and detailed & valid agreement between

System Integrator and OEM(s) defining clearly the role, responsibility, scope of work

and contribution of each of them towards the tendered Equipment/ System.

13. Certified Testimonial / Certificates in support of Experience in the form of purchase

order or contract for meeting the eligibility criteria (clearly indicating value of works).

Certified English translation shall be enclosed if language is other than English.(Refer

para 6.4.4 of manual)

14. Certified Testimonial / Certificates issued by end-user agency corresponding to the

purchase order or contract which are submitted towards meeting the eligibility criteria,

stating that the equipments had satisfactorily performed after completion of

work as verification of meeting the eligibility criteria. Certified English translation shall

be enclosed if language is other than English.

15. An undertaking that the tenderer has not been debarred from participating in tenders by

Government of India, Governments of any Indian States and any Central/State Public

Sector Undertaking.

16. Indian Bidder should submit his PAN number *Overseas bidder shall give PAN within 30

days after award of contract.

Note : In case of new Technology, eligibility critera may be decided by TS Authority

11. The tender for the offered system cannot be submitted both by the OEM and its



12. The bidder as authorized representative can participate on behalf of only one OEM.

198

APPENDIX 6-B

Category 1 :

1.0 Software Integrated/embeded in Equipment : Under this category, software is

embedded over hardware and is an integral part of the system to achieve specific

objective and functionality.

1.1 Equipment like ILS, VOR, DME, RADAR, VCCS, Test Equipments, Transmitter/Receivers

(HF/VHF/UHF Links) etc., are placed in Category 1.

1.2 Composite price shall be sought for Category 1 equipments in not more than the

following heads :

i) For supply Installation Testing and Commissioning(SITC) :

a. Composite Cost of Equipment and accessories.

b. Cost of Services (Installation, Testing and Commissioning)

c. Cost of Manuals/Documentation

d. Cost of Training

e. Cost of In-country repair facility, if required by AAI.

ii) For Supply only :

a. Composite Cost of Equipment and accessories.

b. Cost of Manuals/Documentation.

c. Cost of Training

d. Cost of In-country repair facility, if required.

Category 2 :

2.0 CNS Equipment with Separate Hardware and Software Component :

2.1 Under this category, equipments where Commercial Off The Shelf (COTS) hardware

(e.g. PC, Servers, Laptop, networking equipment and accessories etc.) or discrete

Hardware and On-media Software (e.g. Operating Systems, ready to use Application

Software Packages etc. ) are used.

2.2 Equipment like Automation, AMSS, Simulators, CCTV, DATIS, FDPS, RDPS, Radar Data

Networking etc., are placed in Category 2.

2.3 Cost-breakup of hardware and software to the extent shall be sought for Category 2

equipments in not more than the following heads :

CATEGORIES OF CNS EQUIPMENT/SYSTEM FOR THE PURPOSE OF PRICING SCHEDULE

199

i) For Supply Installation Testing and Commissioning(SITC) :

a. Cost of Equipment and accessories(Hardware).

b. Cost of COTS software

c. Cost of application software

d. Cost of Services (Installation, Testing and Commissioning)

e. Cost of Manuals/Documentation

f. Cost of Training

g. Cost of In-country repair facility.

ii) For Supply only :

a. Cost of Equipment and accessories(Hardware).

b. Cost of on-media software

c. Cost of Application software

d. Cost of Manuals/Documentation

e. Cost of Training

f. Cost of In-country repair facility, if required.

g. Cost of training on repair facility

(The categorization of equipment shown above is only indicative and not

exhaustive)

200

Appendix- 6C

(To be executed on Rs. 100 Non-Judicial paper)

HIGH SEAS SALE AGREEMENT

Agreement No.:

This High Seas Sale Agreement is made this ........................ between

M/s....................................... a company incorporated under the Companies Act,

1956, and having its Office at ........................ (hereinafter referred to as the Seller

which expression unless it be repugnant to the meaning and context thereof be deemed

to include their successors and assigns) of the One Part.

AND

Airports Authority of India Rajiv Gandhi Bhawan, Safdarjung Airport, Rajiv Gandhi

Bhawan, New Delhi – 110003 (hereinafter referred to as the “Buyer” which expression

shall unless they be repugnant to the meaning or context thereof, mean and include its

successors and assigns) of the other part.

a) The Seller is desirous of selling its products, more particularly described in clause

01 herein below.

b) The Buyer has agreed to purchase the said products on such terms and conditions

as mutually agreed and mentioned therein.

NOW THEREFORE THIS AGREEMENT WITHNESSETH AND THE FOLLOWING TERMS

AND CONDITIONS ARE HEREBY AGREED TO BY AND BETWEEN BOTH THE PARTIES

HERETO :

1. Material & Quantity :

Seller shall exclusively owns and warrants that it shall have valid title over the following

products (Equipment) :

S.No. Description Quantity Total Amount (INR)

2. Sale Price :

Seller will sell to the buyer the above mentioned Equipment / material for a

consideration of Rs ______________ (Rupees ) CIF transfer at High Seas . i.e. before

equipment / material crosses Customs Frontier

3. Delivery :

Seller shall ship the above equipment by air in favour of Seller or its designee as

provided in Airway Bill. The Delivery shall be deemed completed on High Seas Sale by

endorsing Airway bill No. _________________ in favour of the buyer or its designee

201

4. Completion Of Sale, Transfer of Title :

Seller shall be deemed to TRANSFER TITLE to the goods in favor of the Buyer upon

delivery of a duly endorsed Airway Bill in favour of the Buyer, the Seller’s Invoice

showing the sale value, and a Transfer Letter detailing all the accompanying

documents. Upon request of the Buyer, the Delivery Order can be made to Buyer’s

designee.

5. Customs Duty :

Any Custom Duty / Levy by Customs Authorities to be paid by Buyer or its Designee

6. Air Freight :

The International Air Freight charges till the destination Airport is included in the Sale

Price.

7. Risk of Loss and Insurance :

Seller shall assume risk of loss over the Equipment/material until delivery of Equipment/

material at High Seas. Seller shall obtain adequate Cargo Insurance to cover all losses

and damages that may be suffered during shipment of the goods at the point of

dispatch from ............... to destination port. Insurance Premium for such insurance is

included in the Sale Price. Seller shall provide Buyer with documentary proof of

adequate air cargo (or marine) insurance to cover loss or damages to the goods during

shipping. As regards any loss, damages, shortage and / or other claims to the

consignment of the goods, Seller shall nominate and subrogate its rights to the Buyer to

recover the amount from the Insurance Company, streamers, agents, airlines, freight

forwarders, airport authorities or Customs authorities to recover the losses, if any.

8. Sales Tax :

Sales Tax is not applicable for goods transacted for sale on High Sea Sale basis at

present

9. Clearance :

OWNERSHIP AND POSSESSION of the merchandise passes to the Buyer upon

DELIVERY as described at (3) above, the Buyer or its designee shall take delivery of the

goods from the Carrier at the arrival airport.

10. Payment :

The Buyer will make payments to the Seller as per PO terms and sellers Invoice / Bill No.

.............. together with a duly endorsed airway bill and other shipping documents

covering the goods.

11. Other Documents :

Upon Seller’s request, the Buyer shall provide the Selller : the Exchange Control copy of

the Bill of Entry, copy of Customs attested Invoice and other documentary proof of

202

having cleared the goods from the Customs within reasonable time as may be required

by the Seller for submission to the Bank and or RBI or any other State or Central

Government Agency.

12. Amendments

Any amendments and supplements to this contract are valid only if they are agreed

upon by both the parties in writing and signed by authorized representative of both

parties AND ONLY IF EXECUTED BEFORE DELIVERY OF THE GOODS AS DESCRIBED IN

CLAUSE 3 ABOVE.

IN WITNESSS WHEREOF, the Seller and the Buyer’s duly authorized representatives

have signed o the date below their names.

SIGNED AD DELIVERED SIGNED AND DELIVERED

For For Airports Authority of India

Authorised Signatory Authorised Signatory

203

APPENDIX -7A

(To be submitted on Letter Head)

To



Rajiv Gandhi Bhavan,


Sub: Application for Issue of Tender Document.

Sir,

This is with reference to tender for the work ..........................................................

(Title of the project). Please issue one Tender document in the name of M/s

................................................................ (Name of the firm)*. We are submitting

the following.

Demand Draft No. ..................... dated ..................... drawn on

................................ in favour of Airports Authority of India, payable at New Delhi for

Rs. ................/- (Rupees .......................................................... only towards the

tender fee. (Note : Cash shall not be accepted.)

Letter of authorization from M/s ......................................................................

(Name of the Bidder)* for collection of tender document. (In case accredited agent is

collecting the form on behalf of his foreign principal)

Date:

Signature of Applicant

Name : ................................................

*Name & Address of the bidder:

Name : ................................................

Telephone : ................................................

Fax : ................................................

E-mail : ................................................

APPLICATION FOR ISSUE OF TENDER DOCUMENT

204

APPENDIX -8A

Tender No.Name of Work

Date

Time

Total Nos. of Tenders Sold

Total Nos. of Tenders Downloaded from website

Total Nos. of Tenders received

Total Nos. of Tenders rejected

TENDER OPENING REGISTER PERFORMA FOR ENVELOPE-A

S. Name Name Tender Fee EMD Signature Remarks

No. & of Amount DD Drawn Amount DD Drawn with date

Address firm’s No. on No. of firm’s

of firm represe & (bank) & represen

ntative Date Date tative

Comments of tender opening committee (if required)

Signature Signature Signature

Name Name Name

Designation Designation Designation

Date Date Date

committee member committee member committee member

(1) (2) (3)

205

APPENDIX -8B

Tender No.

Name of Work

Date

Time

TENDER OPENING REGISTER PERFORMA FOR ENVELOPE-B

S. Name & Address Name of firm’s Signature with Remarks

No. of firm representative date of firm’s

representative



Name Name Name


Date Date Date


(1) (2) (3)

206

APPENDIX-8C

Tender No.

Name of Work

Date

Time

TENDER OPENING REGISTER PERFORMA FOR ENVELOPE-C

S. Name & Name of firm’s Total Signature with Remarks

No. Address representative Price offer date of firm’s

of firm representative



Name Name Name


Date Date Date


(1) (2) (3)

207

APPENDIX 10-A

To,

Address of the Successful Bidder

Reference : Tender No. ........................................ for (Name of the Project )

Subject : Letter of Intent- Name of the project

Dear Sir,

Airports Authority of India invited offers through Tender No. ..................... for (Name

of the Project ). (Name of successful bidder) has offered supply, installation, testing,

integration & commissioning of CNS-ATM facilities at (Name of Airport) and AAI has

accepted its offer for SITC of (Project Name) at a total cost of ..................... inclusive of

..........................................

Now, therefore, you are requested to send AAI unconditional acceptance of Letter of

Intent in prescribed preformed enclosed within five working days through fax / courier /

your authorized representatives or by any means as deemed appropriate, failing which

it shall be construed that you are not interested in the offer and hence not accepted the

above subject Letter of Intent unconditionally.

Yours sincerely,

( )

Executive Director (CNS-P)

Encl : As above

PERFORMA FOR LETTER OF INTENT (LOI)

208

APPENDIX 10-B

To

The Executive Director, (CNS-P)


Rajiv Gandhi Bhawan,

Safdarjung Airport,

New Delhi – 110 003.

Fax No. 91-11-24611134

Ref. : Tender No. ...................................... for (Name of the Project)

Subject : Acceptance of Letter of Intent (LOI) dated …………

Dear Sir,

I hereby convey unconditional acceptance of Letter of Intent dated (Date) under

reference for and on behalf of M/s (Name of successful bidder).

Yours sincerely,

For and on behalf of M/s (Name of successful bidder)

(Authorized signatory)

Name Designation

Address

Fax No.

Ph. No.

PERFORMA FOR ACCEPTANCE OF LETTER OF INTENT (LOI)

209

APPENDIX 10-C

AGREEMENT (On INR 100/- Non Judicial Stamp Paper)

For CNS-ATM facilities at (Name of the Airport, City, State)

Between

Airports Authority of India, Rajiv Gandhi Bhawan, SAfdarjung Airport,

New Delhi – 110 003 (India)

And

(Name of the Contractor along with address )

THIS AGREEMENT, entered into this (Date) day of (Month & Year) by and between (Name of

Contractor), having its office at (Contractor’s Office Address) (hereinafter called the

“Contractor”) and the Airports Authority of India having its office at Rajiv Gandhi Bhawan,

Safdarjung Airport, New Delhi, India (hereinafter called the “AAI”), the expressions

“Contractor” and “AAI” shall mean their successors, legal representatives or assigns, for the

(Name of Project), (Name of the Airport, City, State ).

WITNESSETH

WHEREAS, AAI invited offers for the (Name of Project), (Name of the Airport, City, State ).

WHEREAS, the Contractor has offered (Name of Project), (Name of the Airport, City, State ) in

accordance with their Price Bid dated (Date) and AAI has accepted its offer.

NOW, therefore, in consideration and mutual convenants contained herein, the Contractor and

the AAI (hereinafter referred to as the “parties”) agree that the following document shall be part

of this agreement:-

1. AAI Tender Documents for the (Name of Project), (Name of the Airport, City, State )

comprised in Volumes- (Numbers), including Drawings and Maps supplied by AAI.

2. Tender corrigendum no. 1,2 ….

3. Tender clarifications offered by AAI subsequent to the Pre-Bid meeting held on (Date).

4. Bid Documents submitted by the Contractor dated (Date) in fulfilling the contract

requirements that includes the signed compliance.

5. Unconditional acceptance of AAI Tender conditions as given by the Contractor.

6. Queries raised by AAI during technical evaluation and technical clarifications submitted

by the contractor in response thereof.

DRAFT AGREEMENT WITH SUCCESSFUL BIDDER

210

7. The price bid of the Contractor which was opened on (Date) and accepted by AAI.

8. Detailed itemized cost of the spares list, training program, syllabi for (Name of

Equipments), clarification on data sharing between AAI and (Name of the Airport, City,

State ) offered by the Contractor vide his letter dated (Date).

9. Reference of LOI/Purchase order issued/acceptance of bidder

For and on behalf of Contractor For and on behalf of Chairman, AAI.

Signature Signature

Name of the Executive Name

Designation Designation

1. Witness : (Signature, Date, Name, Designation on behalf of AAI)

2. Witness : (Signature, Date, Name, Designation on behalf of Contractor)

211

APPENDIX 10-D

DRAFT SAMPLE FOR PURCHASE ORDER

No. AAI/PO-- Date :

To,

Name & Address of the Company

SUB: Purchase order for Supply Installation, Testing & Commissioning of

..................

References:

i) Tender No. ________ and related corrigendum No.___________

ii) Reference of Bid documents submitted by successful supplier

iii) Reference shall also be given regarding clarifications sought from the supplier and

their responses with proper letter number & date

iv) Reference of AAI Letter of Intent

v) Reference of supplier acknowledgment to AAI Letter of Intent

vi) Any other reference considered to be important for the project

Dear Sir,

Reference is made to the above mentioned correspondence and your offer (technical,

commercial proposal and various subsequent technical clarifications) submitted against

above referred tender.

Airports Authority of India hereinafter referred to as purchaser, is pleased to place a

purchase order for Supply, Installation, Testing and Commissioning of Name of

the Equipment as per details in Annexure I on M/s (name of the company),

hereinafter referred to as supplier.

1.0 Price :

1.1 The items as per Annexure-I will be supplied and work executed by M/s (name of the

company) at a total cost of Euro/USD/INR subject to applicable withholding tax as may

be levied by the Government.

a) The price for equipment supply including spares is Euro /USD/INR on FOB/Ex-works

/ Upto consignee (as the case may be) and is firm and fixed (Prices shall be indicated

in figures as well as in words).

b) The Installation, Testing, Commissioning and Training Charges shall be

Euro/USD/INR (Prices shall be indicated in figures as well as in words)

1.2 The supplier shall forward details of his Permanent Account Number (PAN) details for

effecting applicable Tax Deduction at Source (TDS) and also withholding tax order from

the tax authorities in India within 30 days from the date of purchase order or prior to

release of first partial payment.

212

2.0 Time Schedule : ( As per Tender Terms and Condition)

2.1 For Supply: Duration shall be mentioned as per the tender conditions

2.2 For Installation: Duration shall be mentioned as per the tender conditions

2.3 Effective date is defined as under:

a) In case of supply on FOB basis: Date of opening of L/C subject to submission of

performance bank guarantee within the stipulated period, otherwise, 45 days from

issue of purchase order.

b) In case of supply on Ex-works basis: Date of issue of purchase order.

2.4 The supply of goods ordered should be fully completed in not more than 06 (Six) part

shipments within the stipulated delivery schedule. The sets supplied in each shipment

should be complete in all respects.

3.0 Terms of Payment ( through an irrevocable Letter of Credit):

3.1 As per Tender condition . Pse Add

3.2 The payment will be released on presentation of documents as detailed in the Letter of

Credit. Letter of Credit will be opened upon submission of Performance Bank

Guarantee.

3.3 Custom Duty shall be paid equivalent to the quoted value in the financial bid. Any

deviation in custom duty due reclassification of custom tariff by the Govt. of India shall

be on account of AAI. However, any increase in custom duty due to non-inclusion of

supply item for the purpose of calculating custom duty in financial bid shall be on

account of M/s. ____________ and will be adjusted from the invoice raised towards

supply of item.

4.0 Paying Authority:

4.1 The Executive Director, CNS (Planning), Airports Authority of India, Rajiv Gandhi

Bhawan, Safdarjung Airport, New Delhi-110 003.

5.0 Mode Of Transport, Freight & Insurance:

5.1 Shipping arrangement will be made through the Ministry of Shipping and Transport,

(Charting Wing), New Delhi, as per Govt. of India guidelines on freight to pay basis

through Government of India's approved freight forwarder. However AAI reserves the

right to ask the supplier to make arrangement for transportation of items/materials at

their quoted cost.

5.2 Adequate notice about the readiness of each consignment for transportation should be

given by the supplier at least six weeks in advance of the proposed dispatch

date for finalizing the shipping arrangements. For this, supplier shall intimate port of

dispatch, port of arrival along with the cargo details such as Total Weight /Volume,

Packing details, No./Type of Containers Required, Qty. to be loaded per container,

readiness date etc. to Executive Director (CNS Planning) well in advance (six weeks).

213

5.3 The Insurance of consignment will be arranged by the General Manager, Central Radio

Store Depot (CRSD), Airports Authority of India, Safdarjung Airport, New Delhi 110

003 (India) Fax No. +91-11-24611960. The supplier shall provide relevant information

for insurance of consignment to the General Manager, CRSD 30 days in advance of

dispatch.

OR

(If the tender states that insurance is to be arranged by supplier then the

language of clause shall be amended suitably)

6.0 Port Consignee & Dispatch Of Shipping Documents:

6.1 The General Manager (CRSD), Airports Authority of India, Safdarjung Airport, New

Delhi – 110 003, Tel# +91-11-24611960, Fax# +91-11-24611960 shall be port

consignee. The Shipping documents should be sent to the port consignee by Fax

followed by courier immediately after handing-over the consignment for shipping to

enable the clearance of the consignment in time.

OR

(If the tender states that the supplies are to be made upto port consignee

then the language of clause shall be amended suitably)

6.2 It shall be the responsibility of the Supplier to ensure that the shipping documents are

dispatched to port consignee promptly. The supplier shall forward two sets of the

following documents, one set each to the Executive Director (CNS –Planning) New

Delhi, India Fax No. +91-11-24611134 and the port consignee as soon as goods are

dispatched.

a) Invoice (copy)

b) Itemized Packing list with cost of each item.(copy)

c) Proof of dispatch in the form of Bill of Lading (copy)

d) Certificate for Country of origin (copy)

e) Factory Acceptance Test report (copy).

6.3 It shall be the responsibility of the supplier to obtain the required documents from AAI

well in advance for the purpose of custom clearance to avoid any demurrage. Any

demurrage on the consignment shall be on the account of supplier.

7.0 Liquidated Damages : (as Per Tender )

8.0 Time Essence Of The Contract :

8.1 The time and date of completion of the supply as contained in the contract proposal and

as agreed to contractually after modifications, if any, shall be final and binding upon the

supplier. It must be understood that the supplier has made the proposal after fully

considering all such factors which may have any bearing on the time schedule of the

contract, and no extension in the schedule whatsoever shall be permitted on these

accounts by the AAI.

214

9.0 Delay & Non Conformance:

9.1 In case of the above time schedule including approved delay with or without levy of

liquidated damages for late delivery of equipment as contained in Para 2 & 7 of this

order not being adhered to, AAI has the right to cancel the order wholly or in part

thereof without any liability to cancellation charges and procure the goods elsewhere in

which case the supplier shall make good the difference in the cost of goods procured

elsewhere and price set forth in the order with the supplier.

9.2 In the event of rejection of non conforming goods, the supplier shall be allowed to

correct the non conformities without extension in delivery period. If supplier fails to do

so within the stipulated time, the purchaser shall have the right to take recourse to 9.1.

10.0 Deductions From Contract Price:

10.1 All costs, damage or expenses which the AAI may have paid, for which under the

contract the supplier is liable, will be claimed by the Airports Authority of India (AAI). All

such claims shall be billed by the AAI to the Supplier regularly as and when they fall due.

Such bill shall be supported by appropriate and certified vouchers or explanations to

enable the supplier to properly identify within fifteen days of the receipt of the

corresponding bills and if not paid by the supplier within said period, the AAI may then

deduct the amount from any money due or becoming due to the supplier under the

contract or may be recovered by actions of Law or otherwise, if the supplier fails to

satisfy the AAI of such claims.

11.0 Termination Of Contract At Purchaser’s Initiative:

11.1 The AAI reserves the right to terminate the contract either in part or in full due to the

reasons other than specified herein. The AAI shall in such an event give 15 days’ notice

in writing to the Supplier of their decision to do so.

11.2 The supplier upon receipt of such notice shall discontinue the work on the date and to

the extent specified in the notice, make all reasonable efforts to obtain cancellation of

all orders and contracts to the extent they are related to the work terminated and terms

satisfactory to the AAI, stop all further subcontracting or purchasing activity related to

the work terminated, and assist the AAI in maintenance protection, and disposition of

the works acquired under the contract by the AAI.

12.0 Performance Bank Guarantee :

12.1 The supplier within 30 calendar days from the date of issue of purchase order shall

submit the unqualified performance guarantee of 10% (ten percent) of the total

purchase order value in the form of an irrevocable and unconditional bank guarantee on

a Nationalized /Scheduled Bank, as per proforma attached as Annexure-….. The

guarantee shall be valid till the expiry of 90 days after the end of the period of

guarantee/warranty.

215

12.2 In case the bidder fails to submit the PBG within stipulated period, , interest @ 12%

p.a. on Performance Guarantee amount would be levied (non-refundable) for delayed

period of submission and shall be deducted from EMD.

12.3 The guarantee amount shall be payable to AAI without any condition whatsoever and

the guarantee shall be irrevocable.

12.4 The performance guarantee shall be deemed to govern the following guarantees from

the supplier, in addition to the other provisions of the guarantee:

12.4.1 The successful and satisfactory operation of the equipment supplied in accordance with

the specifications and other relevant documents.

12.4.2 The equipment supplied shall be free from all defects of design, material and

workmanship and upon written notice from AAI, the supplier shall fully remedy, free of

expenses to AAI, all such defects as developed under the normal use of the said

equipment within the period of guarantee/warranty.

12.5 The performance guarantee is intended to secure the performance of the entire

equipment. However, it is not to be construed as limiting the damages stipulated in any

other clause.

12.6 The performance guarantee will be returned to the supplier at the end of the period of

liability without interest.

The erection, installation and commissioning will be done as per operation, installation,

maintenance manuals and performance guarantee tests supplied by the supplier. The

supplier will be fully responsible for the guaranteed performance of the supplied and

installed equipment and its warranty obligations.

13.0 Force Majeure :

13.1 AAI may grant an extension of time limit set for the completion of the work in case the

timely completion of the work is delayed by force majeure beyond the supplier's

control, subject to what is stated in the following sub paragraphs and to the

procedures detailed there in being followed. Force majeure is defined as an event of

effect that cannot reasonably be anticipated such as acts of God (like earthquakes,

floods, storms etc.), acts of states, the direct and indirect consequences of wars

(declared or un declared), hostilities, national emergencies, civil commotions and

strikes (only those which exceed a duration of ten continuous days) at supplier's

factory. The supplier's right to an extension of the time limit for completion of the work

in above mentioned cases is subject to the following procedures:

13.1.1 That within 10 days after the occurrence of a case of force majeure but before the

expiry of the stipulated date of completion, the supplier informs the purchaser in

writing that the supplier considers himself entitled to an extension of the time limit.

216

13.1.2 That the supplier produces evidence of the date of occurrence and the duration

of the force majeure in an adequate manner by means of documents drawn up

by responsible authorities.

13.1.3 That the supplier proves that the said conditions have actually been interfered with

the carrying out of the contract.

13.1.4 That the supplier proves that the delay occurred is not due to his own action or lack of

action.

13.2 Apart from the extension of the time limit, force majeure does not entitle the supplier to

any relaxation nor to any compensation of damage or loss suffered.

14.0 Arbitration And Laws :

14.1 Except where otherwise provided for in the contract, all questions and disputes

relating to the meeting of the specifications, designs, drawings, and instructions

herein before mentioned and as to the quality of workmanship or materials

used on the work or as to any other question, claim, right, matter or thing

whatsoever in any way arising out of or relating to the contract, designs,

drawings, specifications, estimates, instructions, orders or there conditions or

otherwise concerning the works, or the execution or failure to execute the same

whether arising during the progress of the work or after the completion or

abandonment thereof shall be settled within thirty (30) days (or such longer

period as may be mutually agreed upon) from the date that either party notifies

in writing that such dispute or disagreement exists, shall be settled under the

Rules of Indian Arbitration and Conciliation Act, 1996. The venue of Arbitration

shall be New Delhi, India. The arbitration resolution shall be final and binding

upon the parties and judgment may be entered thereon, upon the application

of either party, by any court having jurisdiction.

14.2 This contract shall be governed by Indian Laws.

15.0 Guarantee/Warranty :

15.1All goods or material shall be supplied strictly in accordance with the

specifications. No deviation from such specifications of these conditions shall be

made without purchaser's agreement in writing which must be obtained before

any work against the order is commenced. All materials furnished by the

supplier pursuant to the Order (irrespective of whether engineering/ design or

other information has been furnished, reviewed or approved by AAI) are

guaranteed to be of the best quality of their respective kinds (unless otherwise

specifically authorized in writing by AAI) and shall be free from faulty design to the

extent such design is not furnished by AAI. The goods/ material used by the

supplier and its workmanship should be of proper quality so as to fulfill in all respects

the operating conditions and other requirements specified in the order.

217

15.2 If any trouble or defect originating with the design, materials, workmanship or

operating characteristic of any materials arise any time prior to (duration as per

tender condition) from successful Site Acceptance Test & Commissioning,

and the supplier notified thereof, the supplier at his own expense (including freight

insurance, duty and customs for items sent for repair) and at no cost to purchaser as

promptly as possible make such alternations, repairs and placements at site as may

be necessary to permit the functioning of the equipment in accordance with the

specifications. The warranty period of repaired or replaced goods shall be extended for

a period equal to the turnaround time (out of service period). OR AS per Tender

condition

15.3 The purchaser may at its option remove such defective material at the supplier's

expense, if the supplier does not act reasonably after being informed.

15.4 In the event that materials supplied do not meet the specifications and/or are not

in accordance with the drawings, data sheets and rectification is required at site,

purchaser shall inform the supplier giving full details of deficiencies. The supplier shall

attend at his own expenses to meet and agree with the representatives of AAI and take

action required to correct the deficiencies. and do the rectification/replacement to

make the system functional as per specifications.

16.0 Operational Maintenance during warranty period :

16.1 The supplier shall provide technical support after the successful conduct of Site

Acceptance Testing during warranty period.

16.2 The supplier shall replace any parts, including the supplied software found defective

during warranty period without any charges whatsoever to AAI.

16.3 During warranty period, the supplier shall provide free replacement of any defective

spares of the equipment supplied against this work.

17.0 Factory Inspection/testing And Inspection Certificate :

17.1 Factory inspection of complete equipment shall be made by Inspectors nominated by

AAI. Their travel, boarding and lodging expenses will be borne by AAI.

17.2 The supplier shall give 30 days’ written notice of readiness of any material for the

purpose of Factory Acceptance Test. Such tests shall be to the supplier's account.

17.3 The inspector shall as soon as possible, but not exceeding 5 working days from the

date of completion of inspection, give notice in writing to the bidder about successful

completion of FAT or any deficiency in the equipment or workmanship, which in his

opinion is not in accordance with the contract. The supplier shall give due consideration

to such objections and shall carry out repairs that may be necessary to correct the said

objections and arrange for the supplementary FAT giving 10 days notice to AAI (for

which the to and fro travel expenses and boarding and lodging expenses are to be

borne by the supplier). After, the Supplementary FAT has been completed at supplier’s

works; the inspector shall issue a certificate to this effect, but not exceeding 5 days

after completion of the tests.

218

17.4 The completion of these tests or issue of certificate by the inspector shall not bind AAI to

accept the equipment should the equipment, after installation, be found not complying

with the specifications stipulated in the contract.

17.5 AAI will communicate in writing to the supplier, in case it does not depute the

inspector(s) for Factory Acceptance Tests and in such case the inspection certificate,

issued by the Quality Control Department of the manufacturer will be considered

for acceptance of equipment by AAI.

17.6 The certificate issued by the Quality Control Department, complete with all test results

as contained in the FAT Document, shall be sent to ED (CNS-P) immediately after

receiving the advice from ED (CNS-P) that no inspector is being deputed for FAT.

Acceptance of this certificate and advice for dispatch of equipment shall be issued by

AAI within 30 days of the receipt of the certificate. If no advice is received from AAI

within 30 days of receipt of certificate by them, the certificate may be deemed accepted

and equipment may be dispatched.

18.0 Site Acceptance Test (sat) & Commissioning :

18.1 It will be the responsibility of the supplier to submit the system test procedure for

conducting the post installation site acceptance testing. The procedure submitted by

the supplier should be drafted in line with the standard practices followed in the industry

and should be in accordance with the test procedures & practices specified by the OEM.

The acceptance test procedure on approval by AAI shall become the document for

acceptance of the equipment after installation at the site. The draft copy of system test

procedure should be made available to AAI for approval before 30 days of the schedule

site acceptance date.

18.2 The system will be commissioned after successful completion of approved SAT,

operational & maintenance training and all the works under the scope of the tender.

18.3 Installation will be termed as completed after successful completion of SAT.

19.0 Packing & Forwarding :

19.1 All packing should be strong enough to withstand rough handling by loaders,

unloaders and other transporters. Fragile articles should be packed with special

precautions and should bear the marking like Fragile, Handle with care and/or 'This Side

Up' etc.

19.2 All delicate surfaces of equipment/goods should be carefully protected and painted with

protective paint/compound and wrapped to prevent rusting and damage.

19.3 Attachment and spare parts of equipment and all small pieces be packed in wooden

cases with adequate protection inside the case and wherever possible should be sent

along with the major equipment. Each item shall be tagged so as to identify it with the

main equipment and part no. and reference no. shall be indicated.

19.4 All protrusions and threaded fittings shall be suitably protected and openings shall be

blocked by covers.

219

19.5 Wherever required equipment material shall be packed in polythene bags and

silica gel or similar dehydrating compound shall be put inside the bags to protect

them. Pipes/tubes made of stainless, copper etc. shall be packed in wooden cases

irrespective of sizes. The supplier shall be held liable for all damages or breakages

to the goods due to the defective or insufficient packing as well as for corrosion

due to insufficient protection.

19.6 On three sides and top of package, marking as desired by the purchaser, shall be

done with indelible paint. Consignment for each station (Complete in all respect)

shall be packed separately and marked clearly to indicate destination for onward

transportation from port consignee to the respective Installation sites.

19.7 Patents, Supplier's Liability & Compliance Of Regulations :

19.8 The supplier shall protect and fully indemnify the purchaser from any claims for

infringement of patents, copy right, trade mark or the like.

19.9 The supplier shall also protect and fully indemnify the purchaser from any claims from

supplier’s workmen/employees, their heirs, dependents, representatives etc. or from

any other person(s) or bodies/companies etc. for any Act of commission or omission

while executing the order.

19.10 The supplier shall be responsible for compliance with all requirements under the laws

and shall protect and indemnify completely the purchaser from any claims/penalties

arising out of any infringements and indemnify completely the AAI from any

claims/penalties arising out of any infringements.

20.0 Effect And Jurisdiction Of Purchase Order :

20.1 The order shall be considered as having come into force from the date of issue of this

Purchase Order by AAI.

20.2 The law applicable to this contract shall be the law enforced in India. The courts of Delhi

shall have exclusive jurisdiction in all matters arising under this Purchase Order.

21.0 Defence Of Suits :

21.1 If, any action in court is brought against the purchaser or an officer or agent of the

purchaser for the failure or neglect on the part of the supplier to perform any acts,

matters, covenants or things under the contract, or negligence on the part of the

supplier, his agents, representatives or his sub-suppliers, workmen, suppliers or

employees, the supplier shall in all such cases indemnify and keep the purchaser,

and/or his representative, harmless from all losses, damages, expenses or decrees

arising all such action.

220

22.0 Taxes, Permits & Licenses :

(As per Tender condition) e.g.

22.1 The supplier shall be responsible for payment of all Indian duties, levies and taxes,

including income tax on the M/s (name of the company) team working in India for

supervising of the installation, lawfully assessed against the supplier for both corporate

and personal income. The purchaser shall have the right to deduct such taxes, duties at

source, subject to applicable withholding tax as may be levied by the Government of

India.

22.2 The supplier shall forward details of his Permanent Account Number (PAN) details for

effecting applicable Tax Deduction at Source (TDS) and also withholding tax order from

the tax authorities in India within 30 days from the effective date of the contract.

23.0 Change of Quantity :

23.1 AAI reserves the right to change the quantity to the extent of +25% of the ordered

quantity or part thereof, as mentioned in Annexure - I.

23.2 Price applicable at the time of purchase order for the equipment and accessories

should be valid for a period of one year from the date of award of first contract. AAI

reserves the right to give repeat order, with the same terms & conditions as for the first

order, which shall not exceed 50% of quantity supplied in the order.

24.0 Documentation :

24.1 Two set each of soft copy and hard copy of Installation, Operations and Operators

manual, Technical manuals, Maintenance manuals, Error Messages manual etc. shall be

supplied with the supplied equipment as specified in the subject tender.

25.0 Spares :

(As per Tender condition) e.g.

25.1 All the spares for the equipment under the contract will strictly conform to the

specifications and documents and will be identical to the corresponding main

equipment/components supplied under the contract and shall be fully interchangeable.

25.2 The quality standards and the inspection requirement finalized for the main equipment

will also be applicable to the corresponding spares.

25.3 The supplier shall warrant that all components and spares supplied will be new and in

accordance with the tender document and will be free from defects in design, material

and workmanship.

25.4 The supplier shall guarantee the long term availability of components to the purchaser

for the full life of the equipment (As defined in Appendix 2A). The supplier shall

guarantee that before going out of production of components of the equipment covered

under the contract, supplier will give at least twelve months advance notice to AAI, so

that the latter if so desires, may order its requirement of spares for the remaining life of

the equipment.

221

25.5 Further, in case of discontinuing the supply of components and spares by the supplier or

its sub-contractor, the supplier will provide AAI with full information for replacement of

such components and spares with other functional equivalent makes, if so required by

AAI.

25.6 The quoted price of spares in the financial bids of .......................................... shall be

valid for a period of 3 years after completion of warranty or (as defined in the tender

document)

26.0 Training :

As per Tender condition e.g.

26.1 Training shall be as per the provision in subject tender document Reference of Tender

document).

You are requested to acknowledge the receipt in acceptance of this procurement order

by signing at each page on a copy of this purchase order.

Yours faithfully,

For AIRPORTS AUTHORITY OF INDIA

(Name of the officer)

EXECUTIVE DIRECTOR, C.N.S. (PLANNING)

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APPENDIX 10-E

DRAFT PERFORMA FOR LETTER OF CREDIT

1 Brief particulars of goods to be imported

2. Name of Beneficiary / Vendor’s Bank Name of beneficiary:

(if available) Bank Details / Address:...............

Account Number with Bank

Type of account: CURRENT

3. Contact Person with Beneficiary.

Phone / Fax / Telex No.

4. Whether L/C to be confirmed

5. Name and address of the Beneficiary

6. Value of L/C foreign currency amount

7 Period of validity of L/C

a) For supply of equipment a)

b) For negotiation (validity of L/C) b)

8. a) Part-shipment

b) Trans-shipment

9. Special instruction, if any In case supplier supplies equivalent

items then it should have approval of

AAI. Packing list shall tally with

Purchase order.

In case, the Contract is on DDU basis,

then suppler shall be responsible for

obtaining withholding Tax order from

the Tax authorities in India within

30 days from effective date of

contract

Overseas supplier shall be paid in INR for the items supplied from India either to

Indian supplier directly or through contractor.

223

APPENDIX 11-A

1. Name of the CNS Equipment/System:

2. Month/Year of Installation:

3. Warranty Expiry Date:

4. AMC with Supplier, if any:

5. Recommended Life Span of Equipment/System:

6. Book Value of the Equipment/System:

7. In house repair capability if any :

PERFORMA FOR OBTAINING TECHNICAL SANCTION FOR PROCUREMENT OF SPARES

S. Name of Part Initial Qty Qty Assessed Qty Re-

No. the No. qty procured Available quantity procured marks

module supplied subsequently in the

/PCB/LRU with the indicating stock.

Equipment Month/Year

of purchase.

(A) (B) ( C) (D) (E) (F) (G)=(F)-(E)

Note : If there are more than one procurement of spares after initial supply of

spares along with the Equipment, Column “D” may be repeated as per the

requirement.

224

APPENDIX 11-B

Sub : Name of the Project

a) Brief scope of the work :

b) Detail about AA&ES :

c) Cost of the Project :

d) Budget provision

e) Brief outcome of Pre qualification and Technical evaluation

f) Brief about minutes of negotiation meeting, if any :

g) Brief about outcome of financial bid

The proposal for ........................... with Ms/.................................................

(name of the company ) at the total cost of INR Rs. .................... with FE

component of US $ ................... is submitted before PAB for consideration

and recommendation for approval by Competent Authority.

(Signature of the Officer)

Executive Director

PERFORMA FOR PAB NOTE

225

APPENDIX -11C

The following terms and conditions shall be kept in mind while defining the different

clauses in the Repair Support Contracts as per the requirement for which contract is

being executed.

1. Scope of Work : Under this clause, all the activities to be performed by the supplier for

providing repair support shall be clearly defined. Responsibility of Contractor for

completing the task within the assigned time frame shall be indicated without any

ambiguity . The area of responsibility of AAI executives shall also be clearly mentioned.

2. Contract Price : The agreed price in figures and words shall be indicated along with

Taxes, Duties, Freight and Insurance charges if any.

3. Terms of Payment : Agreed terms of payments with conditions if any shall be

mentioned clearly under this clause.

4. Performance Guarantee : The value of performance bank guarantee as a insurance

towards assigned work shall be indicated under this clause. Normally AAI is taking

unqualified performance bank guarantee of 10% of the total price of the offer. The

format of the Performance Bank Guarantee shall be as per AAI requirement. The validity

of such performance bank guarantee shall be for a period of six months after expiry of

contract.

The terms and conditions for recovering the amount from the Performance Bank

Guarantee shall be clearly defined.

5. Time of Performance : The time period of the contract or the delivery of the items

shall be defined under this clause.

6. Paying Authority : Name of the Paying authority shall be mentioned in the contract.

7. Consignee : The address of the site for which repair support is being obtained needs to

be defined.

8. Penalty : In case of delay in providing repair support beyond the specified time, a

penalty clause indicating the conditions under which penalty will be invoked

9. Termination : AAI reserves the right to terminate the contract either in part or in full at

its sole discretion. The AAI shall in such an event give 15 days notice in writing of its

decision to do so.

Contractor / Supplier , upon receipt of such notice shall discontinue the work on the date

and to the extent specified in the notice, make all reasonable efforts to obtain

cancellation of all orders and contracts to the extent there related to the work

terminated in terms satisfactory to the AAI., stop all further sub-contracting or

purchasing activity related to the work terminated and assist the AAI in maintenance

protection and in this position of the works acquired under the contract by the AAI.

IMPORTANT TERMS & CONDITIONS IN REPAIR SUPPORT CONTRACT

226

In the event of such termination, the contractor shall be paid compensation for all

expenditure related to the contract effort undertaken prior to termination plus all

expenses related to termination effort.

10. Force majeure : AAI may grant an extension of time limit set for the completion of the

work in case the timely completion of the work is delayed by force majeure beyond the

contractor's control, subject to what is stated in the following sub paragraphs and to the

procedures detailed their in being followed. Force majeure is defined as an event of

effect that cannot reasonably be anticipated such as acts of God (like earthquakes,

floods, storms etc.), acts of states, the direct and indirect consequences of wars

(declared or un declared), hostilities, national emergencies, civil commotions and

strikes (only those which exceed a duration of ten continuous days) at successful

Bidders factory. The successful bidder’s right to an extension of the time limit for

completion of the work in above mentioned cases is subject to the following

procedures:

11. Arbitration : Except where otherwise provided for in the contract, all questions and

disputes relating to the meeting of the specifications, designs, drawings, and

instructions herein before mentioned and as to the quality of workmanship or

materials used on the work or as to any other question, claim, right, matter or thing

whatsoever in any way arising out of or relating to the contract, designs, drawings,

specifications, estimates, instructions, orders or there conditions or otherwise

concerning the works, or the execution or failure to execute the same whether arising

during the progress of the work or after the completion or abandonment thereof shall

be settled within thirty (30) days (or such longer period as may be mutually agreed

upon) from the date that either party notifies in writing that such dispute or

disagreement exists, shall be settled under the Rules of Indian Arbitration and

Conciliation Act, 1996. The venue of Arbitration shall be New Delhi, India. The

arbitration resolution shall be final and binding upon the parties and judgment may be

entered thereon, upon the application of either party, by any court having

jurisdiction.

12. Law Governing Contract : Contract shall be governed by Law of India

13. Effect and Jurisdiction of Contract : A suitable language may be added

227

APPENDIX 12

HS Code Item Description

8526 Radar Apparatus, Radio Navigational

Aid Apparatus and Radio Remote

Control Apparatus

8526 10 00 Radar Apparatus

8526 91 Radio Navigational Aid Apparatus

8526 91 10 Direction Measuring Equipment

8526 91 20 Instrument Landing System

8526 91 30 Direction Finding Equipment

8526 91 40 Non-Directional Beacon

8526 91 50 VHF Omni range Equipment

8526 91 90 Other

8526 92 00 Radio Remote Control Apparatus

• List of equipment for which DGFT license is required. There may be more

equipment as per current policy of DGFT. Refer Chapter 12 for more

details.

• List is indicative not exhaustive please refer http://DGFT.delhi.nic.in

LIST OF EQUIPMENT FOR WHICH DGFT LICENSE IS REQUIRED

228

APPENDEX14-A

DGCA CAR for CNS Maintenance. Similar CARs are issued by DGCA for other

equipments like surveillance, Navigational Aids etc

CIVIL AVIATION REQUIREMENT

SECTION-9AIR SPACE AND AIR TRAFFIC MANAGEMENT

SERIES ‘D’ PART-I Issue-II Dated 8 January 2011

F. No. 9/38/2009-IR

Sub : Requirement of Maintenance/inspection of Communication,

Navigation, Landing and other equipment installed at Airports and en-

route.

1. Applicability :

This part of the Civil Aviation Requirements lays down the requirements of

maintenance, inspection or communications, Navigation, Landing and other

equipment installed at airports and en-route and used for aircraft operations. These

equipment may be owned and operated by Airports Authority of India,

Meteorological Department or any other agency.

This CAR is issued under Sector 5A of the Aircraft Act 1934 and Rule 133A of the

Aircraft Rules 1937 for compliance by all concerned agencies. This CAR is issued in

supersession of CAR Section 4 Series X Part I, issue I dated 4th February 1994.

2. Scope :

The requirements stipulated in this civil Aviation Requirement will apply to all

Communication, Navigation and landing facilities including the following :

1. Visual Landing Aids-VASI/PAPI etc.,

2. Approach lighting

3. Non-Directional Beacon

4. VHF Direction Finding System

5. Locator Beacon

6. Instrument landing System

7. Microwave landing system

8. VOR / T-VOR Doppler VOR

9. Distance Measuring System

10. Communication Facilities like VHF and HF Radio Telephone, AFTN, Satellite based

Voice and Data Communication System, Direct Speech Circuits, VHF Data Links etc.

229

11. Airport Surveillance Radar

12. Air Route Surveillance Radar

13. Air Route Surveillance Radar

14. SSR and MSSR

15. Computer based ATC – ADS etc.

16. Airport Recorder and Replay System

17. Differential GPS system and connected equipment

18. RVR Measuring equipment

19. Meteorological equipment

3. Maintenance :

3.1 Maintenance Schedule :

The operator shall prepare maintenance schedules for periodic preventive

maintenance, including testing, functional checks and serviceability of the equipment.

These maintenance schedules shall be prepared in accordance with the guidelines

provided by the manufacturers of the equipment. The schedules should also indicate

the level of officer who can carry out the check / inspection and the periodicity of the

schedules A copy of each of these schedules should be submitted to the DGCA. DGCA

may introduce additional checks if required.

3.2 Test Equipment :

The operator shall ensure that all tools / test equipment are available for carrying out

the maintenance / checks of the facility and also adequate spares to ensure continued

serviceability of the facility.

3.3 Calibration of Test Equipment :

The operator shall ensure that all the test equipment used for maintenance and

periodical checks of the facilities are kept properly calibrated and certified by recognized

standards institutions.

3.4 Maintenance Records :

All records of daily and periodical maintenance schedules (preventive as well as

corrective) shall be preserved for a period of not less than two years. However, DGCA

may direct preservation of such schedules for longer periods, if required.

3.5 Defect and Rectification Register :

The operator shall maintain a Register giving details of all the defects and rectification

actions taken, duly signed by the officer in charge of the facility.

230

3.6 Maintenance Personnel :

All personnel entrusted with the maintenance / checks of a facility should have

undergone necessary training. They should undergo periodical o the job checks at least

once in a year and refresher course at least once in three years.

3.7 Responsibility of Officer in Charge :

The officer in charge of the facility shall be responsible for continued, maintenance and

safe operation of facility.

4. Status Of Equipment After An Accident / Incident :

In case an aircraft is involved in an accident while making use of a facility, the

concerned unit of the facility shall be withdrawn and flight inspected immediately.

The unit shall not be declared operational till checked and tested thoroughly and its

performance is found satisfactory. The standby unit of the facility shall be utilized

during this period in case of an incident. DGCA may require the concerned unit of the

facility to be withdrawn for checking.

4.1 In respect of a facility that is or might have been involved in an air accident / incident,

operational status data shall be recorded for both main and standby equipment of the

facility.

4.2 In order to ensure that operational data of a facility is not misinterpreted the operator

shall ensure that the data entries are complete , clear, concise, accurate and correctly

timed.

5. Self Inspection :

The operator shall draw a programme for periodically inspecting and checking the

functional and calibration checks of the facility required as per the ICAO norms are

carried out and proper records of the same are maintained the operator, should ensure

that the facility is used for operations only when it is fit for operation.

6. Inspection By DGCA :

Any officer designated / nominated by the Director General of Civil Aviation shall be

empowered to inspect at ay time any facility to check. The serviceability and

maintenance records and procedures

7. Certification :

Any new equipment or system procured and installed, by the operator for providing

facility as listed above, shall be declared operational only after it is found lit for

operation on satisfactory completion of the necessary inspection / checks and

calibration from air and ground as required and after obtaining concurrence of the

DGCA for the same.

231

8. Logistic Support :

In order to ensure that the maintenance of a facility is not delayed for lack of spares.

The stock of spare units, modules, PCBs and components etc. shall be maintained at the

site of facility or at a place from where the required spares can be transported to the site

without any avoidable delay. The storage facility shall be subject to inspection at any

time by an officer designated by DGCA for this purpose.

9. Monitoring Of Serviceability Status :

The performance of the equipment should be monitored regularly. The operator shall

prepare a quarterly report on Mean time Between Failures (MTBF) of a facility and the

same shall be made available to DGCA. If an equipment becomes unserviceable for

more than one week , the same should be reported to DGCA along with the details of the

defect ad proposed rectification action.

232

APPENDIX -14B

1. Name of the project:

2. Contract agreement number:

3. Name of Contractor :

4. Address:

5. Contract amount:

6. Date of commencement:

7. Date of Completion:

[A] Performance Evaluation by GM (CNS) of Metro Airport/Region:

1. Quality of work :

a) Very Good b) Good c) Average d) Poore) Very poor

2. Compliance to the instructions : Immediately/Argumentative

3. Was work delayed : Intentionally/Due to circumstances at site (Give details)

4. Behavior of contractor project In-charge and its employees :

Cordial / Average / Strained

5. Overall performance of contractor : (Very Good, Good, Average,

Unsatisfactorily)

6. Any other remarks :

(Name & Signature)

[Remarks of Project co-coordinating officer at CHQ]

(Name & Signature)

[Remarks of ED (CNS) at CHQ]

(Name & Signature)

EVALUATION OF PERFORMANCE OF CONTRACTORS/FIRMS

233

APPENDIX 15

NOTICE INVITING QUATOATION

O/o THE GENERAL MANAGER(CNS)

NEW ATS BUILDING

IGI AIRPORT, PALAM

NEW DELHI-110037.

Ref. No. AAI/CNS STORE/PROC OF SPARES FOR .............................

DATE:

Sub : Notice Inviting Quotation for procurement of Spares for ....................

Sealed quotations are invited by the General Manager(CNS), Airports Authority

of India, IGI Airport, Palam for procurement of Spares for........................

• Technical bid must be sealed in Envelope 'A' containing copy of valid

authorized distributorship certificate from Manufacturer, valid PAN No. & DVAT

registration certificate/service tax & agreement to terms & conditions duly

signed in the prescribed format given in Annexure-II along with the Technical

brochure.

• Envelop "B" containing the commercial bid in the prescribed format given

in Annexure-1.

• Both the Envelopes are to be sealed in another Envelope marked 'Master

Envelope'.

• The Master Envelop should be super scribed NIQ for Procurement of Spares for

............................., due to be open on date DD/MM/YYYY".

Last Date and Time of Receipt of Quotations : ..................... up to 1430

IST.

Date and Time of Opening of Quotation : ..................... at 1500 IST.

Terms & Conditions

1. Duly completed quotation along with requisite documents should reach by registered

post or in person at the following address on or before ........................ up to 1430

hrs positively.

Dy.General Manager (CNS)

Room No. …., New ATS Building

Near Terminal-II, I.G.I. Airport,

New Delhi-110037.

234

2. Quotation will be opened on the same day (i.e.------) at 1500 hrs in presence of

interested quotationers or their authorized representatives, AAI will not be

responsible for delay in submission of quotations sent by post. Envelope 'B' which

shall be opened after scrutiny of the basic documents of Envelope 'A'.

3. The price quoted in the Annexure-I should be inclusive of all taxes. No extra

payment will be made other than quoted amount.

4. The validity of quotation should be for a minimum period of 60 days.

5. Incomplete & ambiguous quotations will be rejected.

6. Delivery Period : Within 4 weeks from the date of supply order received.

7. Liquidated Damages : In case of failure to execute the order in full within the

specified period, liquidated damages shall be charged @ 1/2% per week or part

thereof but not exceeding 5% of the total contract value. Even the order can be

cancelled at the risk and cost of the supplier. In case the contractor fails to deliver

the materials as per the delivery schedule indicated in the purchase order, the

material shall be procured from open market to meet the immediate

demand/requirement at the risk and cost of the supplier.

8. Warranty/guarantee card should be supplied along with the items. Period of

warranty/guarantee should be one year from the date of testing.

9. Technical brochure in support of specification shall be attached in Envelope “A”.

10. Documentary proof of PAN No./VAT No./Service tax no. should be attached along with

the quotation.

11. Payment will be made after completion of work.

12. AAI reserves the right to accept/reject any quotation without assigning any

reason.

DGM(STORE)

For GENERAL MANAGER(CNS)

NEW ATS BUILDING, I.G.I.AIRPORT,

NEW DELHI-110037.

235

Appendix 15 Annexure -1

Airports Authority of India…. Airport, New Delhi

AAI NIQ Ref No: ------------------------ Dated .......

NAME OF THE WORK: PROCUREMENT AND INSTALLATION OF ....................

1. Name and address of the Bidder

2. Status of the Bidder (Proprietary/Partnership)

3. Name of Proprietor /Partner

S. ITEM DESCRIPTION QTY UNIT/RATE VAT/SERVICE OTHER TOTAL

No. DUTIES AMOUNT

(A) (B) TAX © (D) (B+C+D)*A

1.

2.

4 OPTIONAL ITEMS

5 TOTAL

6 FREIGHT AND INSURANCE CHARGES

7 INSTALLATION & COMMISSIONING CHARGES

8 TRAINING CHARGES, IF ANY

9 GRAND TOTAL (6+7+8)

Note 1: Form C & D for concessional duty shall not be acceptable for AAI for exemption or reduction in Govt. Duties.

Note 2: Use of erasure, over writing and or corrections in the price Bid should be avoided. However, in case it becomes unavoidable to use any of these for correction, the same must be authenticated by the person signing the bid with his signature.

Note 3: Change in nomenclature of schedule and added optional items in this schedule attract action as per AAI terms and conditions

Note 4: Service Tax may be indicated separately for every station towards installation, testing and commissioning by the bidder having valid service Tax number in India otherwise AAI shall calculate Service Tax on the value of services rendered in India and deposit to Govt. of India.

Note 5: No rows and columns should be left blank. In case price already included in the basic price and break up cannot be given or there is no cost, same may be indicated in the column or row as “Included “ or “ Not applicable “ or “Nil” as may be appropriate. In case of non compliance of the same, action will be taken by AAI as under Note 6 below for the purpose of comparative statement and placement of order

Note 6: In case of any ambiguity in total unit price or total amount figures or non-adherence to Note 5, all calculations will be carried out taking Basic Unit rate as base.

I / We agree to all terms and conditions and Note above

DATE SIG.OF BIDDER

PLACE OFFICE SEAL

236

APPENDIX15 ANNEXURE - II

S.No. Details Characteristics Compliance Not

Compliance

1. Name of Spares/work

(i) Technical specification 1

(ii) Technical specification 2

(iii) Technical specification 3

(iv) Technical specification 4

(v) Technical specification N

D.G.M.(STORE) (SIG. OF BIDDER)

for GENERAL MANAGER(CNS)

TECHNICAL SPECIFICATION FOR SPARES FOR SMU

237

APPENDIX 16

Important Documents/Approval shall be available in any contract file:

1. In-Principle Approval of the project

2. Budget Provision

3. Administrative Approval & Estimate Sanction

4. Nomination of External Implementation Monitoring Officer (EIM)

5. Technical sanction of NIT

6. Newspapers cutting as a proof advertisement in major papers

7. Nomination of Pre-qualification committee and Acceptance of Pre-Qualification report

8. Nomination of Technical Evaluation committee and acceptance of Technical Evaluation

report

9. Approval of Competent Authority before opening of Financial bid

10. Feeding of Foreign currency Exchange rate in AAI E-portal as per Tender condition

11. Copy of Letter of Intent and its acceptance

12. Copy of Purchase order and its acceptance

13. Legal agreement in original

14. Performance Bank Guarantee

15. Refund of EMD to unsuccessful bidders

16. Intimation to unsuccessful bidders

17. Intimation to Consignee about the Purchase order and its condition

18. Intimation to Finance department along with Purchase order/Contract copy

19. Timely action for WPC/DGFT clearance

20. Documents related to project execution activities,

*List is not exhaustive but indicative. Important documents related to

deviation approval, EOT with or without levy, Delay in Site readiness etc shall

be kept in records/files as per the requirement

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