Invitation to Bid ~Maynilad

January 6, 2015

Subject: Invitation to Sealed BidE-Bid Reference No. NBE-15-0019

Dear Gentlemen/Madam:

This is to invite you to quote to Maynilad Water Services, Inc. your lowest price for the Consulting Services forAsset Performance Management, as shown below, as per Maynilad Terms of Reference (see attached). Pleasesubmit your quotation through electronic bidding on or before MARCH 17,2015, 10:00am,

A bidder may, in its discretion, either bid at the ABM Global Solutions (formerly Bayantrade) office, located at 4thFloor SM Makati Cyber Once No.69 Jupiter Street, Barangay Bel-Air 1225 Makati City, using the latter's facilities, atno cost, or at the bidder's own office.

Bidder who cannot participate in the e-bid event is requested to submit or email to Maynilad Procurement(procurement.dept @mayniladwater.com.ph) a letter of non-participation citing is reason of its non-participation.Failure to submit the said letter shall construed that the bidder is not interested to participate in any Maynilad'sfuture biddings.

SCHEDULE OF ACTIVITIES:

I. Maynilad will entertain inquiries arising from the Terms of Reference until January 13, 2015. Inquiries maybe sent through email address: procurement.dept@mayniladwater.com.ph or through Fax No. (632)-981-34-97.Procurement will then consolidate all answers and communicate to all interested bidders on or before January23,2015.

II. Submission of Technical Proposal (Hardcopy and/or softcopy):

Date Time Venue

February 13, 2015 11:00 am Procurement Department

III. SUBMISISON OF BID SECURITY-Only complying bidder will be advised to submit the bid security

Date Time VenueMarch 13, 2015 11:00 am Procurement Department

A. Bid Requirements

1. Bid Security

1.1 The bidders are required to submit to, and post in favor of, Maynilad a bid security (the "BidSecurity") (i) equivalent to 5% of the total amount based on the starting bid price plus the 12% value-added tax ("VAT"), and (ii) that is valid for at least six (6) months from the date of issue.

1.2 The Bid Security must be in any of the following forms:

[DOC. NO.] MAYNILAD WATER SERVICES, INC.I MWSS COMPLEX, KATIPUNAN AVE., BALARA 1105 QUEZON CITY, PHILIPPINES ITEL. NO. +632 981-3333

Invitation to Bid

Page 2 of 3ITB: Asset MgntNBE-15-0019(01062015)

(b) Irrevocable Letter of Credit, or(c) Bank Guarantee, issued by any reputable banking institution located in the Metro

Manila; or(d) Surety Bond that is callable on demand, issued by Gotuaco, Del Rosario Insurance

Brokers, Inc., with office address at 15/F, Chatham House, 116 Valero corner RufinoStreets, Salcedo Village, Makati City.

2. Bid Price and Validity

2.1 E-Bid price must be submitted on a lot basis

2.2 E-Bid- price shall be denominated in US Dollar, exclusive of VAT.

2.3 The bid price must be valid for at least forty five (45) days from the e-bid date.

3. Performance Bond

3.1 To guarantee the faithful performance of its obligations under the contract, the winningbidder(s) shall be required to post a performance bond or security (the "Performance Security")in favor of Maynilad (i) equivalent to 20% of the total contract price, and (ii) that is valid for atone (1) year from date of issue.

3.2 The Performance Security may be in any of forms stated in Section 1.2 above.

4. Delivery Period submitted timeline of the participating bidders shall be subject to evaluation/approval

5. Delivery Place Maynilad Water Network.

6. Terms of Payment : within thirty (30) days from acceptance of delivery

A delivery shall be deemed accepted once the items (i) have been inspected by a representative of theMaynilad Administration, Logistics and (ii) found to have complied with Maynilad Specifications andTerms of Reference.

7. Bid Breakdown

Within 24 hours or on the next business day immediately following the e-bid event, all the bidders mustsubmit to the Procurement Department the breakdown of their e-bid prices.

As shown in the table below, the bid prices should include the (i) unit price, exclusive of VAT, (ii) totalprice, exclusive of VAT, and (iii) total price inclusive of VAT.

ItemUnit Cost

Metric No, metrics Total AmountNo.

Component(examples shown) (example shown) (VAT Excl)

(VAT Excl)

1 Hardware xxx.xx sockets 4 xxx.xx

[DOC. NO.] MAYNILAD WATER SERVICES, INC.I MWSS COMPLEX, KATIPUNAN AVE., BALARA 1105 QUEZON CITY, PHILIPPINES I TEL. NO. +632 981-3333

Invitation to Bid

Page 3 of 3ITB: Asset MgntNBE-15-0019(01062015)

ItemComponent Unit Cost

Metric No, metrics Total AmountNo.

(VAT Excl)(examples shown) (example shown) (VAT Excl)

2 Software Licenses xxx.xx user licenses 20 xxx.xx

3Database licenses (if xxx.xx User licenses 20 xxx.xxapplicable)

4Other licenses (if xxx.xx xxx.xxapplicable)

5Software implementation xxx. xx Lot 1 xxx.xxservices

6 Consulting Services xxx.xx Lot 1 xxx.xxTOTAL COST xxx.xx

B. Award of Contract:

Maynilad shall award a contract in favor of the winning bidder(s).

Maynilad reserves the right to reject any or all the bids, waive the required formalities, and accept the bidthat it deems to be most advantageous to the company.

Thank you.

Very truly yours,

CLA~GOMEZ 'PHead, Procurement Deparment

[DOC. NO,] MAYNILAD WATER SERVICES, INC.I MWSS COMPLEX, KATIPUNAN AVE" BALARA 1105 QUEZON CITY, PHILIPPINES ITEL. NO, +632 981-3333

Consulting Services for Asset PerformanceManagementTerms of Reference

Table of Contents

1. CompanyProfile•..••••.•..••..•..•.•••..••••••••••••••••..•...••••••..••.•••.••.•••..••.••..•••••..•.•••..••.•••.••••••••••••••••.••.•••••.1

2. Background •.••••••••••••.••••••••••••••••••••.••.•••.••..•••••••••.•••••••••••••••••••••••••••••••••••••••..••••••.••••••.•••••••••••••••••••1

3. Objectives ..••..•••....••..••..•..••.•.••....•....•..•..••...••••..•...•...•..•.....•.••............••...•...•.....•...••.••.••..••..•....•..••.2

4. Submission of Proposals ........................................•..••....•...•............................•..•........•..•............6

S. Accreditation •..................................•............................•...•..••.••.....................•.•.......••..•......•..........9

6. Annex ••••••••••••••••••••.•.••••••••.•..•••••.••••••.••...••.••••••••••••••••••••••••••••••••.•••.••••••.•••••••••••••••••••••••••••••..••.•••.•10

Asset Performance ManagementMaynilad

1. Introduction

Maynilad Water Services, Inc. (Maynilad) is the water and wastewater services provider for the 17 citiesand municipalities that comprise the West Zone of the greater Metro Manila area. In 1997, thecompany was granted a 25-year exclusive concession by the Philippine Government, through theMetropolitan Waterworks and Sewerage System (MWSSl, to operate, maintain and invest in the waterand sewerage system in Caloocan, Las Plnas, Malabon, Manila, Muntinlupa, Navotas, Pasay, Paranaque,Valenzuela, parts of Quezon City, a part of Makati, Cavite City, and the municipalities of Rosario, Imus,Noveleta, Bacoor, and Kawit in Cavite.ln 2010, the concession agreement was extended until 2037.

The West Zone covers a total of 540.43 square kilometers. To manage the delivery of water andwastewater services in its coverage area, Maynilad divided the West Zone into Four District Areascomposed of 12 Business Areas (BA) that are further broken down into zones, sub-zones and DistrictMetering Areas (DMAs). There are currently 1,140,765 billed water service connections in Mayniladwhich translates to a customer population of over 8 million people. Maynilad provides 97.8% of itscustomers with 24 hour continuous water supply. The company maintains and operates over 7,300kilometers of primary, secondary and tertiary pipelines. Maynilad's water distribution system iscomprised of 24 pump stations and 24 water reservoirs across its service area. Its water reservoirs havea total holding capacity of over 530 million liters of potable water. The Maynilad water distributionsystem extends from North Caloocan to Cavite and delivers over 2,000 million liters of potable waterper day. Maynilad maintains and operates 14 sewage and septage treatment plants, 19 pump stations,12 lift stations, and over 500 kilometers of sewer lines for the treatment of wastewater.

2. Background

The Water Supply and Operations (WSO) division of Maynilad is responsible for water treatment,production and distribution. The production and treatment of water are being done in treatmentplants. Currently, there are three (3) different types of treatment plants managed by Maynilad:

First, the La Mesa treatment Plant I +sa conventional type with standard flocculation settlement andrapid-gravity filter plant with a design capacity of 1500MLD. Second is the La Mesa Treatment Plant II,a pulsator type with a design capacity of 900mld. The two aforementioned plants treat water fromAngat Dam. Lastly, the Putatan Water Treatment Plant which was later built to address the growingdemand in the South concession area of Maynilad. Its treatment process is described as a multi-stageprocess comprising of dissolved air flotation (OAF), microfiltration (MF), reverse osmosis andchlorination. It has a design capacity of 1OOmid and treats raw water abstracted from Laguna Lake.

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Asset Performance Management

Likewise, the distribution of water is done using two methods, namely; gravity system and pumpingsystem. Both distribution systems ensure that safe and potable water is supplied with the right flowand pressure to all areas in the network.

To help augment pressure in highly elevated and far areas, Maynilad currently has 19 operationalMajor Pump Stations and two (2) for commissioning. There are also 9 mini-Boosters and 23 in-lineboosters ..Among the major pumps are La Mesa Pump Station, which serves majority of Northern partof the concession area and Pagcor Pump Station, which serves majority of the southern part.

3. PROJECT REALIZATION

A holistic business approach is required to manage plant assets ~It aims to drive profitability from allindustrial assets and creates cooperative and collaborative environment supported by appropriatemeasures of performance, real time information and technology. This will improve Maynilad asset'sreliability and performance.

4. Objectives

This project will serve as a pilot for the asset performance management system of pump stations andtreatment plants. This project will be most beneficial to Pump Stations and Treatment Plants with themost expensive and crucial assets installed in Maynilad. The objectives of this project are stated below:

• To implement an effective asset performance management system that will focus on reliabilityof maintenance that suits the need of Maynilad

• To get real time information on the equipment performance, reliability, maintenance, anddecision support for all assets in the plant

• To improve operational performance

• To increase asset availability and utilization

• To drive maximum value from assets• To conduct the necessary pre-work for eventual use of SAP PM

To attain the above objectives, Maynilad wishes to engage the service of an experienced consultingfirm in the area of Asset performance and Maintenance to define the optimal Maintenance Orderschedules based on Reliability Centered principles of maintenance. This would include:

• Knowledge transfer to Maynilad in terms of the methodology used in scheduling andprioritizing Maintenance orders and the criteria used.

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• Maintenance order schedule for the 2 pilot plants, wherein, the first plant shall be undertakenby the consultant with the participation of Maynilad personnel and the 2nd plant shall beconducted by Maynilad with the consultants' oversight only.

• A complete understanding of how the maintenance is to be performed, the triggers for thescheduling of the maintenance (time-based, condition-based, etc.)

• Guidance from the consultant in terms of gaps from the current maintenance process to the"To-be" process, including analysis of current practices, skills and organization. This shall bedone in the form of a workshop, as well as reports.

• It is expected that the consultant shall propose a software in order to conduct the analysisbased on reliability centered maintenance. Maynilad will also acquire this software, likewise, itis expected that at the end of the project Maynilad personnel should be equipped withsuffiCient and appropriate knowledge on the use of the software(s), as well as the necessarytechnical aspects.

• Maynilad also plans to incorporate the preventive maintenance scheduling SAP PM, hence it isexpected that the consultant shall assist in the preparation of data that will eventuallymigrate /create in SAP PM and other related modules, if any. This would include definition ofAssets, their fields and its hierarchy up to the lowest recommended level, definition oflocations, definition of required fields for an effective generation of Maintenance Orders. It isnot expected for the consultant to define each specific data, they are expected merely to giveoverall guidance and concrete examples based on the data available in Maynilad.

s. Scope of Works

The scope of the project includes the following:

5.1 Consulting services to set up asset performance management that focuses on reliabilityengineering in Maynilad

5.1.1 The project will be carried out at the Pagcor Pump Station wherein, -the consultantwill provide full consulting services and implementation

• Create an asset performance management plan appropriate for Maynilad. This shouldinclude identification of assets to be included, level of hierarchy, location, andasset information required for asset performance management.

• Conduct gap analysis and study on the plant. An AS IS- TO BE report should besubmitted as part of this study.

• Set-up the proposed software (that should be provided by the consultant) forMaynilad in order to do analysis of maintenance procedures and their

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optimization by using the software's reliability centered maintenance analysiscapabilities

5.1.2 Come up with a roadmap for Maynilad on the eventual loading of data and use of SAPPM for maintenance activities. The asset performance management project will becarried out also in Putatan Treatment Plant, however, the consultant will only providea supporting role or a side by side support while Maynilad team implements thesolution, based on the methodology used in 4.1.1

5.2 Should be able to provide software to support the implementation of asset performancemanagement5.2.1 Implementation and configuration of all needed software5.2.2 Solution proposed should be all-inclusive and not require any additional hardware,

software or services aside from those in the vendor's proposal, for the solution tofunction.

5.2.3 Hardware shall be priced, but may be purchased separately by Maynilad, as such, itscorresponding cost should be itemized separately and full specifications must begiven. In any case, Maynilad standard hardware and software is preferred. Refer tosection 5.4

5.2.4 3 months 8x5 remote post-implementation support and maintenance support viaemail and/or telephone.

5.3 The project implementation may be done in two phases: Technical Training and ActualImplementation

5.4 Training should be provided:5.4.1 Workshops and training sessions for asset performance management and reliability

engineering, including its implementation in Maynilad5.4.2 Training sessions for the software

5.4.2.1 Training for the system administrator and end users that will eventually maintain

andsupportthesy~em.5.4.3 Training certificates to be provided at the end of each training sessions

5.5 Creation of detailed implementation plan to include the duration of the project and numberof resources.

5.6 Complete documentation of the project including study handouts, user manuals, trainingmanuals, presentations, and source code (wherever applicable, e.g. customizations).

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5.6.1 Minimum documentation for consulting service listed below:5.6.1.1 Consulting Report - Contains the result ofthe study made. This includes the

existing and to be design. Broken down, this should include the followingcomponents:

5.6.1.1.1 Gap Analysis5.6.1.1.2 AS ISand TO BEprocess flow5.6.1.1.3 Implementation Plan5.6.1.1.4 Asset Hierarchy

5.6.1.2 Reference documents - these may include the following:5.6.1.2.1 Drawings - as built5.6.1.2.2 Technical specifications - technical brochure5.6.1.2.3 Estimated budget5.6.1.2.4 Detailed schedule5.6.1.2.5 Equipment sheet - directory of all equipment found in the facilities5.6.1.2.6 Pictures

5.6.1.3 Training5.6.1.3.1 Study Handouts5.6.1.3.2 Presentations

5.6.2 Minimum documentation for software implementation listed below:5.6.2.1 Project Charter5.6.2.2 Project Timeline5.6.2.3 Functional Specification5.6.2.4 Technical Architecture5.6.2.5 User Manual5.6.2.6 Administrator's Manual5.6.2.7 Installation Manual5.6.2.8 Backup and Recovery Requirements and Procedures

5.6.3 Soft copies of documents in Excel, Word, and Visio format should be submitted

5.7 Asset Hierarchy5.7.1 Organization and Implementation of Asset Hierarchy5.7.2 To structure assets in proper nomenclature and hierarchy, with the idea that these will

be subsequently defined in SAP.5.7.3 Creation of equipment and material master list including spare parts5.7.4 Baseline of asset condition5.7.5 Asset hierarchy should be defined and documented

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Asset Performance ManagementMaynilad

5.8 Maintenance Analysis and Strategy that is ready for loading to SAP5.8.1 Should determine the data that will be loaded into SAP,also in preparation for SAP PM5.8.2 Workshop and documentation on how data will subsequently be created and

migrated to SAP.Consultants are encouraged to suggest more efficient process based on recommendable and feasiblebest practices.

6. Selection of Service Provider

To fulfill the above objectives, the Bidder is expected to bring experience and expertise in the area ofasset performance management and reliability engineering.

7. Submission of Proposals

Maynilad reserves the right to:

• Reject any or all offers and discontinue this RFPprocess without obligation or liability to anypotential vendor,

• Award a contract on the basis of initial offers received, without discussions or requests for bestand final offers, and

• Consider all responses to this TOR as binding, and have them form part of the contract• Disqualify and/or blacklist any vendor due to misrepresentations or misinformation provided

in the proposal.

Vendor's proposal shall be submitted in the format as set forth below. Responding service providerswill confine its submission to the matters sufficient to define its proposal and to provide an adequatebasis for Maynilad evaluation of the Vendor's proposal.The proposal should contain 6 parts:

7.1. Company Profile

7.2. Client references - references with similar products/ services provided including description of

what was provided.

7.3. Cost and Technical Proposal

7.3.1. Technical Proposal

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7.3.1.1. General Description of the proposed solution.

7.3.1.2. Detailed Description - Should contain details on:

• Methodology and approach to be utilized

• Table of Organization of the project team, including counterparts from Mayniladthat may be needed for the project

• Detailed description of the tasks to be undertaken as described in the projecttimelines, as well as whether the task will be conducted in Manila or remotely.

7.3.1.3. Project Timeline - Detailed schedule of activities and identified deliverables peractivity

7.3.1.4. Methodology - should describe the general methodology to be used in theproject implementation with description of concrete activities to be undertaken,including expected involvement from Maynilad personnel (if any)

7.3.1.5. Functional description of the proposed software (as an appendix)

7.3.1.6. Relevant credentials

7.3.1.7.Curriculum Vitae's of personnel to be assigned to the project including field of workand offsite work.

7.3.2. Cost Proposal- the cost proposal should be detailed per component.

Example:Component Unit Cost Metric No. metrics Total Amount

(examples (example shown) (VAT Ex)

shown)

Hardware sockets 4Software licenses User licenses 20Database licenses (if User licenses 20applicable)

Other licenses (if applicable)

Software implementation lot 1Services

Consulting services lot 1

.....Total Cost

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Asset Performance ManagementMaynilad

• If discrepancies occur between the total cost and itemized costs, Maynilad shall make use ofwhichever price is lower.

• Prices should be inclusive of all taxes, duties and charges, except for Philippine VAT.

7.4. Hardware and other infrastructure requirements (when applicable)

4.4.1 Maynilad is currently using HP Proliant DL360 G7 Servers, Windows Server 2008 R2,Microsoft SQL 2008 R2 under a virtualized environment using VMWare version 5

4.4.2 Hardware specifications should be as concrete as possible, and should show calculationsand assumptions used. Calculations should be a function of certain parameters (such asnumber of users, transactions, etc.). At least, specifications should indicate:• Required server specs (CPU, memory, ... )• Storage required (GBytes of disk for the next 5 years, I/O per second speed)• Minimum specifications for the client PCs• Any other particular h/w or s/w needed

Hardware:

Dev

Test/QA

Prod

Software:

Application DatabaseName Version Purpose Name Version Purpose

DevQAITest

Prod

4.4.3 Specifications should be determined for all needed environments, including

Development, Quality and Testing environment and Production environments,whichever are relevant to the project. Costing for all environments should be part of theproposal.

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Mayni/adAsset Performance Management

4.4.4 Proponent should also indicate any support services needed from Maynilad, so as to planthese accordingly.

4.4.5 Initial requirement is for approximately but not limited to 40 users, software licenses and

hardware should support this number of users with a response time of <200msecs.

Role Users Total

<Insert estimated number ofusers and corresponding role>

8. Accreditation

Vendor should comply with Maynilad's accreditation requirements. Attached is the list of documentswhich needs to be submitted on or before the bid submission deadline. The said documents shall besubmitted to the Procurement c/o Estrella Gravidez

A. Signed Accreditation FormB. Certificate of Registration with SEc/DTIC. Incorporation Paper, By-Laws and Articles of Partnership/IncorporationD. Audited Financial Statement for last three (3) years (Balance Sheet/Profit and Loss Statement)E. City/Municipal Permit/LicensesF. Certificate of BIRand VAT RegistrationG. Distributorship Agreement (If applicable)

Please take note that awards can only be made to accredited vendors.

Shown below is a list of activities (with corresponding target schedule) from supplier accreditation tostart of project.

Activities Schedule1. Suppliers accreditation (thru Logistics-Vendor &

Product Evaluation Section)

2. Pre-bid conference

3. Submission of Bids

• Inquiries arising from the TOR may be sent throughemail, addressed to [email]

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(inquiries will be entertained until [date))

• A proposed outline of the presentation shall also beprovided.

4. Opening of Bids

5. Evaluation of Proposals/ Shortlist providers

6. Foreseen Start of Project

Note: The dates provided below are initial assumptions. These may vary accordingly based on thetime spent for processing under other departments within and outside Maynilad Water Services, Inc.

Conformed By:

?/'('I

Ronaldo C. PaduaHead, Water Supply Operations

Francisco CastilloHead ,Information Technology Services

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Annex A. List of Vendors to Invite

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Copyright if:) 2012 Maynilad Water Servlceslnc.