Tender Ref No. KTMl/CARGO-GSA/2018 Dated:19mmd.airindia.co.in/aimmd/tender/BID DOCUMENT.pdf · Tender Ref No. KTMl/CARGO-GSA/2018 Dated:19th February ,2017 1 ... “Tender Document

Tender Ref No. JAPAN/CARGO-GSA/2018 Dated:27th June ,2018

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APPOINTMENT OF “CARGO GENERAL SALES AGENT”

(“GSA”) FOR AIR INDIA- JAPAN

TENDER DOCUMENT

Air India Limited

Registered Office At:

Airlines House,

113 Gurudwara Rakabganj Road,

New Delhi 110001, India

Phone: 91 11 2342 2133

Email: [email protected]

Date:27th June ,2018

Local office Address

Manager,

Air India Ltd.

Imperial Hotel Tower

11th Floor,

C-5-6

1-1-1 Uchisaiwai-cho

Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265

Email:[email protected]


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TABLE OF CONTENTS

Sr. No. Contents Page No.

1. Table of contents

2. Disclaimer

3. Summary of Bidding Information

4. Invitation for Bids (IFB)

5. Instructions to Bidders

6. Technical Bid

7. Financial Bid


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1. DISCLAIMER

The information contained in this tender document (hereinafter referred to as “Tender” or

“Tender Document”) or/and any information pertaining to the aforesaid subject matter provided

subsequently to the Applicants/Bidders in any form by Air India Ltd. shall be subject to the terms and

conditions which are contained herein and any other terms and conditions as may be prescribed by

Air India Ltd prior to award of the Tender.

The purpose of this Tender is to provide all Bidders with the information that may be useful to them

in the formulation of their Bids in response to this Tender. The statements and facts contained

herein, which reflect various assumptions and assessments arrived at by Air India Ltd. do not purport

to contain all/exhaustive the information on the aforesaid subject matter that each applicant may

require for the purposes of submitting their Bids.

The assumptions, assessments, statements and information contained in this Tender may not be

complete, accurate, adequate or correct. Each Bidder should, therefore, conduct its own due

diligence, investigations and analysis and should check the accuracy, adequacy, correctness,

reliability and completeness of the assumptions, assessments, and information contained in this

tender document and shall obtain independent advice from appropriate sources.

The information provided in this Tender to the Applicants is on a wide range of matters, some of

which depends upon interpretation of law. The information given is not an exhaustive account of

statutory requirements and should not be regarded as a complete or authoritative statement of law.

Air India Ltd. accepts no responsibility for the accuracy or otherwise for any interpretation or opinion

on the law expressed herein.

Air India Ltd. also accepts no liability of any nature whether resulting from negligence or otherwise

however caused arising from reliance of any Applicant/Bidder upon the statements contained in this

Tender.

Air India Ltd. may in its absolute discretion, but without being under any obligation to do so, update,

amend or supplement the information, assessment or assumption contained in this Tender, from

time to time till opening of the Bids (technical and financial).

The Tender does not imply that Air India Ltd. is bound to select a Bidder or to appoint the Selected

Bidder, as the case may be, and Air India Ltd. reserves the right to reject all or any of the Bids without

assigning any reason at any time.

The Bidder shall bear any and all its costs associated with or relating to the preparation & submission

of its Bids including but not limited to preparation, copying, postage, delivery fees, expenses

associated with any demonstrations or presentations which may be required by Air India Ltd. or any

other costs incurred in connection with or relating to its proposals. All such costs and expenses shall

remain with the Bidder and Air India Ltd. shall not be liable in any manner whatsoever for the same

or any other costs or other expenses incurred by the Bidder in preparation or submission of the

proposal, regardless of the conduct or outcome of the bid selection process as contained herein.

****************************************************************************


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Air India Limited

2. SUMMARY OF BIDDING INFORMATION

1 NAME OF WORK Cargo General Sales Agent for Japan

2 AVAILABILITY OF BIDDING

DOCUMENT

From 27th June,2018 to 27th July,2018

www.airindia.com

3

TIME AND DATE FOR SEEKING

CLARIFICATION ON BID

DOCUMENT

4th July,2018 from 1000 hrs to 1700 hrs

4 LAST DATE AND TIME FOR

RECEIPT OF BIDS

27th July,2018 ,1700 Hrs

5 TIME AND DATE OF OPENING OF

TECHNICAL BIDS

Will be informed

6 PLACE OF OPENING OF

TECHNICAL BIDS

Manager,

Air India Ltd.


11th Floor,

C-5-6


Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265


7 BID VALIDITY 120 days from the date of opening of

Technical Bid or as advised.

8 CONTACT PERSON Manager,

Air India Ltd.


11th Floor,

C-5-6


Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265


http://www.airindia.com/


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3. INVITATION FOR BIDS (IFB)


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AIR INDIA LIMITED

3. INVITATION FOR BIDS (IFB)

APPOINTMENT OF CARGO GENERAL SALES AGENT FOR AIR INDIA-Japan.

1. Air India Limited, a company constituted under the Indian Companies Act 1956, with

its registered office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi

110001, India, operates as “AIR INDIA” (hereinafter referred to as “Air India” or

“Airline” or “AI”) as a national flag carrier for India. The Airline operates flights

within India, as well as to International Destinations, and inter alia, has major

operations & maintenance bases at Mumbai and New Delhi, and other cities in India.

The Airline intends to appoint Cargo General Sales Agent (GSA) at Japan covering all

on-line & important off-line stations within Japan and any off-line territory beyond

Japan on total discretion and right of Air India . The online station / gateways for

Air India in Japan currently is Tokyo & Osaka 2. The scope of the work (hereinafter referred to as “Works”) for the GSA shall be as

detailed under the Bid documents and such as may be mentioned in the GSA

Agreement.

3. The bidders (hereinafter referred to as “Bidders/Applicants”) who have experience in

similar Works and have established organization as mentioned in the eligibility

€criteria listed herein, for taking up such Works and who satisfy the qualification

criteria of Bid Documents, need only apply.

4. The Airline invites sealed bids in two stage bid system i.e. the Technical and Financial

Bid. The first stage of the bidding process shall involve the opening of the “General

Information and Eligibility Criteria” (collectively referred to as “Technical Bid”) and

the second stage shall involve the opening of the “Selection criteria” (referred to as

“Financial Bid ”). For the bid submission purposes, the Bidders shall ensure that each

of the aforesaid bids should be sealed in two different envelopes, and further super-

scribed in bold as “Technical Bid for the work “Cargo General Sales Agent for

Japan”- Tender Ref No. JAPAN /CARGO-GSA/2018 dated 27th June,2018 and

“Financial Bid for Appointment of Cargo GSA for Japan” Tender Ref No.

JAPAN/CARGO-GSA/ 2018 dated 27th June,2018 respectively. Further, the

Technical Bid must be submitted in a hard bound form (hard bound implies binding

between two covers through stitching or otherwise, whereby it may not be possible to

replace any paper without disturbing the documents). Spiral Bound may be submitted

provided it is done in such a manner that the documents are not loose in the spiral

binding. Loose form, stapled sheets of papers, open/unsealed envelopes etc. without

supporting papers should not be submitted. Further, all pages of the bid shall be

electronically numbered serially with signature & seal on each pages, along with

an index of submissions. Figures quoted in financial bid should be covered with a

transparent adhesive tape.

5. All relevant supporting documents attached with the said bids should be duly self-

certified and signed along with seal by the Bidder. In case the bids are not accompanied

by any and all supporting documents, the bid shall be liable to be rejected.

6. A complete set of bidding documents are available online on the website of Air India

at www.airindia.com. All bids must be accompanied by Earnest Money

Deposit(refundable) of the amount US $ 2500 or Equivalent JPY ( Japanese Yen)

in the form of Banker’s Cheque drawn in favour of “Air India Limited” payable at


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Tokyo, Japan. Bidding parties Cheques will not be accepted. No other forms of

payment would be accepted. In case EMD is not found attached in the Technical Bid,

or not submitted in the mode specified, the bid will be rejected. The EMD for

unsuccessful bidders shall be returned/ refunded without any interest within 10

days of “Technical Bid” Finalization or within 90 days of the last date of the

application. The refund of EMD shall be in the form of banker’s cheque in favor of

the unqualified bidders. The applicant/ bidders may, by specific instructions in writing

to Air India, give the name and address of the person in whose favour the banker’s

cheque shall be drawn by Air India for refund, failing which it shall be drawn in the

name as mentioned in the bid and shall be posted to the address given in the technical

bid. In the case of successful Bidder the EMD would be returned after submission of

Bank Guarantee and Execution of the Agreement. In the event of successful bidder

withdrawing /backing out due to any reason , the EMD amount will be forfeited to Air

India and will not be refunded/returned

7. EMD shall be forfeited, without prejudice to any other right or remedy that may be

available to Air India under the Tender document or the Contract or otherwise, under

any of the following conditions:

a. If a Bidder withdraws its bid at any stage of the Tender process.

b. In case of Successful Bidder, if it fails within the specified time limit –

➢ to sign and return the duplicate copy of the letter of award (if any) ;

or,

➢ to sign the contract, if awarded; or

➢ to furnish the security deposit / bank guarantee.

8. Further, the EMD of the Successful Bidder shall be forfeited in the following cases:

a. if the Successful Bidder withdraws or amends its or deviates or derogates from

the conditions of the Tender in any respect, or declines to accept the Contract

if awarded in its favour;

b. if the Successful Bidder fails to operationalize the contract within 60 days of

appointment due to the reasons specifically attributable to the Successful

Bidder/Applicant.

c. if the Successful Bidder having signed the Contract, commits any breach there-

of prior to furnishing the security deposit / bank guarantee.

d. The EMD of the Successful Bidder shall be adjusted against Security Deposit

to be furnished herein.

9. Once a Bidder has been declared as the Successful/Qualified Bidder and has been

shortlisted as per the process, the Successful Bidder/Applicant will have to submit a

Security Deposit based on billing cycle and credit period which is currently 45 days

for the entire period of contract, which can be annually reviewed and renewed, if

required. The Security Deposit can be submitted in the form of Bank Guarantee, within

10 (Ten) working days or otherwise as communicated, on issue of letter of intent or

immediately on the day of signing of Contract. This Security Deposit amount shall be

forfeited in full, in case the Successful Bidder backs out or they fails to operationalize

the Contract within 30 (thirty ) days or as stipulated on the execution of the same.


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10. All bids must be delivered by the mode of courier or by hand, on the given address:

Manager,

Air India Ltd.


11th Floor,

C-5-6


Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265


The Technical Bids will be opened on the due date by authorized official.

11. The Financial Bids of only those bidders who fulfill all the Technical bid criteria will

be opened.

12. The Airline reserves the Right to accept or reject any bid without assigning any reason

whatsoever and to annul the bidding process and reject all bids, at any time prior to

award of Contract, without thereby incurring any liability to the affected Bidder or

Bidders or any obligation to inform the affected bidder or bidders of the grounds for

the Airline’s action.

13. The Airline reserves the Right to amend at any time and/or re-issue the Bid Document

without the applicant(s)/bidder(s) having no/any right to objection..

14. Bidders may seek clarification, if required, only pertaining to Bid process and its

documents in writing on the given address or email and the same must be attached as

part of Bid Document. The Airline shall endeavor to provide clarifications and such

further information as it may, in its sole discretion, consider appropriate for facilitating

a fair, transparent and competitive bidding process. However, the Airline reserves the

right not to respond to any question or provide any clarification, in its sole discretion,

and nothing contained herein shall be taken or read as compelling or requiring the

Airline to respond to any question or to provide any clarification.

Sd/-

Manager,

Air India Ltd.


11th Floor,

C-5-6


Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265



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4. INSTRUCTIONS TO BIDDERS


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Air India Limited

Appointment of Cargo General Sales Agent of Air India

4. INSTRUCTIONS TO BIDDERS

General

1. Scope of Bid

Air India Limited (hereinafter called “the Airline”), invites sealed bids from eligible

Applicants/Bidders, for the appointment of Cargo General Sales Agent for Air India in Japan

as per the details given in invitation for Bids, under a two (2) bid system i.e Technical and

Financial Bid for the work scope as listed herein and the Contract.

2. Scope of Works

Air India is desirous of appointing General Sales Agent in Japan for air cargo services. The

initial term of the Contract would be three (3) years and extendable by 2 (Two) years from the

date of execution of the same. However, the performance of the Cargo General Sales Agent

shall be subject to review every year and /or as and when required.. The scope of work has been

laid down herein and in the forms of the Contract attached as Annexure B.

3. Definitions

For the purpose of the Tender following definitions are defined as under:

a. The term “Applicant”/“Bidder”, as used in the Tender, shall mean the entity

that has signed the Tender and submitted the quotation in response to the

Tender.

b. The term “Days” shall mean the working days of the region (Air India) .

c. The term “Contract” shall mean the agreement entered into between AI and the

Successful/ Qualified Bidder, confirming its acceptance of the Tender, on the

terms and conditions and the quote given by the bidder mentioned therein.

d. The term “General Sales Agent” (GSA) shall mean the exclusive representative

of Air India in the Territory of Appointment i.e. Japan for the purpose of the

Works. The GSA is required to carry out the Works as contemplated in this

Tender and the Contract (attached herewith in Annexure-B).

e. The term “Territory” shall mean the geographical limits of the country i.e

Japan.

f. The term “Successful Bidder/Applicant” shall mean the Bidder/Applicant who

has been awarded the Contract for the Work Scope contemplated in this

Tender.

g. The term “Turnover of Applicant” shall mean the monetary value of the

sale related to airlines business made by the GSA in Japan


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h. The term “Works”/’Work Scope” shall mean the works as listed herein and the

Contract.

4. Tender fee

The tender document fee is Nil and Tender can be downloaded from the Air India website

under the tenders section. All bids must be accompanied by EMD US $2500 or

Equivalent Japanese Yen in form of Bankers Draft favoring Air India and payable

at Tokyo.

**********************************************************


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5. TECHNICAL BID


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5. Technical Bid

Each Applicant/Bidder shall provide the information/ details/ document pertaining to the

following particulars:

1. Basic mandatory information:

Basic Mandatory Information (Technical Bid)

S.N

o Details

1. (A)What is the name and legal status of your

organization in Japan and if it is a part of any

group, the name of the Group and its Registered

Office.

(B) If you’re an existing Cargo GSA of Air India

in any territory as on date of submission of

application, please give the complete detail.

(C). If your Organization is registered in India,

Please give complete details.

2. What is the Core business of your organization

3. Full address of your organization along with the

contact details of the authorized person submitting

the bid on behalf of your organization along with

the authority document.(Email ID, alternate

email ID, telephone numbers, mobile phone

number)

4. Date of establishment of your organization and

the group(if applicable)

5. Is your organization owned or associated

(Fully/Partly- Financially or otherwise) by any

other organization? Give the full name of the

owners/Promoter must be given with the details of

the Owner/Share ratio. .

6. Is your Organization is fully Registered as per the

Country Law and has met all the obligation as per

the law of the land(Respective Country Law).

Further entitles your company to represent foreign

airlines. i.e. Air India.

Please attach confirmation on letter head

under Bidder/Applicant’s seal/Duly signed

by Authorized Signatory

7. Have any partners, officers/ directors/ employees

having authorization to act and sign on behalf of

your organization, been involved in bankruptcy

proceedings? If yes, are they now legally and fully

discharged of their obligations by the court

involved?


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8. Attach photographs of the exterior and interior of

your current office at various locations (On line

Station where AI operates). The name of the

Bidder/Applicant should be clearly visible in the

photograph.

9 Provide the details of your bank account , your

bankers and their addresses, Email and Contact

Number , Contact Person(if Possible)

Attach the Formal letter from the Your Bank

on the letter head of the Bank

verify/certifying the details

10. EMD Attached as prescribed. Details Attached.

Name of Bank, Amount, Date.

Authorized Signature

Seal of the Company


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2. Prequalification Criteria:

For the following prequalification requirements, bidders MUST submit documentary

support.

I. Technical bids must be accompanied by Earnest Money Deposit (Refundable)

of the amount US $ 2500 or Equivalent Japanese Yen in the form of Banker’s

Cheque drawn in favour of “Air India Limited” payable at Tokyo , Japan.

Technical Bids unaccompanied by EMD will be summarily rejected.

II. The bidder / applicant should have minimum turnover JPY ¥ 342 Million to

qualify for this Tender.

III. The applicant entity should have at least one years of experience as GSA or

in Cargo business in Japan. Cargo business in this context refers to sale of air

cargo transportation on scheduled Airline services. Experience in business

refers to experience of the Applicant/ Bidder and not of the partners/ owners/

directors and /or an associate/ group company.

IV. The Applicant for prequalification should be a single entity to be appointed as

GSA and under this Tender document. The Applicant should be either a

company or a partnership firm. However, no Applicant applying individually

can be a member of another applicant. Applicants/ bidders are advised that pre-

qualification of applicants will be entirely at the discretion of the Airline.

Applicants will be deemed to have understood and agreed that no explanation

or justification on any aspect of the bidding process or selection will be given

by the Airline.

************************************************************


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3. Mandatory Technical Requirement

The Bidders/ applicants should fulfill all eligibility criteria (Technical Bid) in order

for their applications to be processed further. Wherever desired, the bidders/applicants

should tick on the applicable options mentioned under the respective fields in the table

given below. The documents of applicants/ bidders, who do not fulfill even one of the

eligibility criteria listed below, may be rejected by the Airline at its discretion.

Mandatory Technical Bid Requirement(Eligibility Criteria)

1. (i)The Applicant entity preferably is acting in the

capacity of a Cargo GSA in Japan and who is

recognized by and has billing through IATA-CASS

(ii)In case the applicant does not have billing

arrangement with CASS, applicant/Bidder should be

prepared to take the CASS activity of Air India or get

themselves through CASS Billing arrangement for

Air India business or take over the billing activity of

Air India directly.

YES/NO

YES/NO

2. The applicant entity should have at least One Year

years of experience as GSA, in Cargo business in

Japan. Cargo business in this context refers to sale of

air cargo transportation on scheduled Airline services.

Experience in business refers to experience of the

Applicant/Bidder and not of the

partners/owners/directors and/or an associate/group

company.

Specify number of years in cargo

business Japan. Please provide the

registration number of the

Bidder/Applicant. (attach certified

copy of certificate of

incorporation/registration number of

the Bidder/Applicant).

3. Should not be an IATA Accredited agent (Freight

Forwarder). If the applicant is an IATA accredited

cargo agent (Freight Forwarder) then applicant /

bidder willing and must surrender the IATA

accreditation if appointed as a GSA for Air India.

YES/NO

4. Should not be in Operating loss the previous year

(immediately preceding the date of this Tender).

(Attach Financial statements (Balance Sheet & Profit

and Loss Account along with the auditor’s report or

Tax Return or any Certificate issued by any statutory

authority of Japan in regards to the above Financial

Statements (Balances Sheet and Profit & Loss

Accounts). Financial Statement for at least one Year

and preferably for the past 3 (three) years

(immediately preceding the date of this Tender) if

available may be submitted.

YES/NO

5. Should not be Cargo GSA for any airlines operating

direct services (single flight number) including code

share operation from that Japan to India (Specify the

airlines for whom applicant act as a GSA) .

YES/NO


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6. No member of the applicant’s immediate family

(parents/spouse/children) should be running any

Company/GSA who operates direct services (single

flight number including code share operations from

that Territory to India. Any such eventualities in

future should be intimated to Air India in writing.

YES/NO

7. Should be familiar /have experience with IATA CASS

procedures or any other equivalent applicable

procedures in respective/designated territory.

YES/NO

8. Should undertake to cover financial defaults of any

agent / Freight Forwarder etc appointed/performing in

the respective/designated territory of GSA..

YES/NO

9. Should be willing to take appointment as GSA for Air

India in the designated territory an Unconditional &

Irrevocable Bank Guarantee/Financial Coverage (in

the format given by Air India) or cash deposit as

advised by Air India.

YES/NO

10. Should have minimum turnover of at least JPY ¥ 274

Million per Financial Year based on average of last

three years or the last preceding Financial Year

YES/NO

11. Should have on its payroll adequate number &

experienced staff for online/off-line stations and

willing to provide at required location.

YES/NO

12. The following applies for appointment as GSA for

Air India:

Performance security: The Applicant is willing to

accept the assured revenue to be remit to Air India as

per the revenue commitment submitted in the

financial bid. In the event of non-achievement of

assured revenue target, GSA would be given an

opportunity of 90 (ninety) days to come up to the

expectations of Air India and his performance would

be monitored. If the GSA is not able to perform in the

said time frame, Air India reserves full right to

terminate the Contract, besides the recovery of the

financial deficit from the assured financial coverage.

Yes/No

13. The applicant agrees to offer and maintain at its own

cost the offices of at least 250 Sq. Ft at online station

and at other cities as per requirement. The office

should be provided with all office infrastructure

YES/NO


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including Telephone, internet, mobile, stationery as

per requirement. A provision for Cabin/Designated

office for Air India official may also be made

available.

14. The Applicant Company/Bidder should not have been

into any kind of legal dispute or arbitration in the past

with Air India or its subsidiaries.

YES/NO

15. The applicant agrees to bear legal costs of defending

any action by any incumbent agent of Air India and

bear the cost of compensation if any, awarded as a

result of terminating such incumbent agent(s), if

applicable

YES/NO

N.B: In case, any Applicant replies with regard to the above in negative (i.e as - No) or

with any conditions attached to the technical bid, the applicant shall be disqualified from

the tender process; in which case the applicant shall not have any claim whatsoever

against Air India.


Seal of the Company


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4.Technical Bid – Terms & Conditions

I. A Bidder/Applicant is permitted to submit only one Bid for respective territory. More

than one Bid by any applicant will disqualify the applicant.

II. An Applicant shall not have a conflict of interest (the “Conflict of Interest”) that

affects the bidding process. Any Applicant found to have a Conflict of Interest shall

be disqualified. An applicant shall be deemed to have a Conflict of Interest affecting

the bidding process, if:

a) A constituent of such applicant is also a constituent of another

applicant; or

b) Such applicant has the same legal representative for purposes of

this tender as any other applicant; or

c) Such applicant has a relationship with another applicant directly or

through common third party/ parties, that puts either or both of them

in a position to have access to each others’ information about, or to

influence the bid/application of either or each other; or

d) Such applicant has participated as a consultant to the Airline (i.e. Air

India) in the preparation of any documents or technical specifications

of this tender.

• Litigation History

The Bidder/Applicant should provide accurate information about any litigation or arbitration

resulting from contracts completed or ongoing under its execution in the past since the time

of its incorporation. A consistent history of awards against the Bidder/Applicant or any partner

of a joint venture will result in failure of the application. Suppression of any information or

material in this regard would be construed as a fundamental breach and Air India reserves its

right to take appropriate action including cancellation of the bid, forfeiting of bid security etc.,

as may be deemed fit and proper by AI at any time without requiring giving any notice to the

Applicant in this regard.

Disqualification

Even though the Bidders/Applicants meet the above criteria, they are subject to be disqualified

if Bidder/Applicant or any of its constituent partners have:

A. Made misleading or false representation in the forms, statements, and attachments

submitted; or

B. Records of poor performance since the time of its incorporation, as on the date of

application such as abandoning the work, rescinding of contract for which the reasons

are attributable to the non-performance of the Bidder/Applicant, inordinate delays in

completion, any history of litigation / arbitration awarded against the Applicant or any

of its constituents or financial failure due to bankruptcy etc.

C. been debarred by Air India or its subsidiaries as on the date of submission of the bid.

D. Litigation History

E. Involved in corrupt and fraudulent practices as mentioned herein below.


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5. Documents to be attached with the Technical Bid

To be qualified for award of the Contract, applicants/bidders shall provide evidence

satisfactory to the Airline of their capability and adequacy of resources to carry out the

respective contracts effectively. Technical Bids shall include the following documentation and

information on the relevant information forms attached with the Technical Bid Document:

1. Integrity pact duly signed and attached in Annexure A.

2. Photograph of interiors and exterior of the office. Attach photographs/blue print of the

exterior and interior of your existing office. The name of the Bidder/Applicant should

be clearly visible in the photograph.

3. Copies of Certificate of Incorporation, Memorandum /Article of Association/

Registration Certificate of the organization, copies of original documents defining the

constitution of or legal status, place of registration and principal place of business.

a) If Registered in Japan- English Translated Copies

b) If you are existing Cargo GSA of Air India- Copy of the Agreement

c) If You are Registered in India- Copies as above

4. Power of attorney of the signatory of the Bid to commit the Applicant /Bidder.

5. Affidavit confirming that all the information furnished by the applicant/bidder in the

bid are true and correct and the Bidder binds himself with all the stipulations of the

bidding document, including provision of adequate equipment, personnel and other

resources required and agrees to augment them, if found necessary.

6. Total annual turnover in the business JPY¥ 274 Million per Financial Year as GSA

at least for the past one year immediately preceding the date of this tender or average

of the past three Financial year duly certified and verified by applicable authority.

7. Reports on the financial standing of the applicant/ bidder including profit and loss

statements, balance sheets and auditor’s reports or Tax Return or any certificate issued

by any Statutory authority for the past one year immediately preceding the date of this

Tender confirming the turnover and the profit & Loss (operating & total) of the

applicant. In case the applicant can submit the Financial Statement for past three years,

the same may be submitted the financial statements should be standalone financials of

the Applicant entity and group (if applicable) should be submitted separately.

8. Bankers and bank account details. Letter from the bank (on its letter head and bearing

the common seal of the bank) with details of bank accounts of the Bidder/Applicant.

9. Earnest Money Deposit in form of Bankers’ Cheque US $ 2500 or Equivalent Japanese

Yen in favor of Air India Limited and payable at Tokyo, Japan.

10. Confirmation letter on the official letter head under the Bidder’s/Applicant’s seal,

confirming that applicable local laws of your country of incorporation/registration

entitle you to represent a foreign Airline at Japan and the Japanese entity is authorized

to represent Air India at Japan.

11. Confirmation letter on the official letter under the Bidder’s/Applicant’s seal confirming

that no partners/officers/directors/employees having authorization to act and sign on

behalf of your company/ organization have been involved in bankruptcy proceedings

in the applicable jurisdiction.

12. Self-Indemnification of the Official letter of the bidder as per the attached sample

format.


21

6. Cost of Bidding

The Bidder/Applicant shall bear all costs associated with the preparation and submission of its

bid and AI will in no case be responsible or liable for those costs, regardless of the outcome of

bidding and AI is not liable for any financial obligation, whatsoever.

7. Amendment and Clarification of Tender Documents

A. Amendment of Bidding Documents

1. At any time prior to the deadline for submission of bids, AI may, for any reason,

whether at its own initiative or in response to a clarification requested by a prospective

Bidder, amend the bidding documents by issuing Addendum within the specific time

limit.

2. Any Addendum thus issued shall be part of the bidding documents and will be hosted

on Air India’s website. Advertisement in Japan (from where the bids have been

invited with regard to this Tender) will be released in the newspapers in Japan.

3. To afford prospective Bidders/Applicants reasonable time in which to take an

Addendum into account in preparing their bids, AI may extend as necessary the

deadline for submission of bids, without assigning any reasons, whatsoever.

B. Clarification of Tender Documents

1. A Bidder requiring any clarification of the Tender documents may notify Air India

in writing at the given address:

Manager,

Air India Ltd.


11th Floor,

C-5-6


Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265


2. AI will endeavor to provide clarification, if justifiable, and in connection to the Bid

requirement within 3 working days after the date specified in the bid document

for seeking clarifications on the Tender Document.

3. Tender document will be hosted in Air India website.

4. Bidders are required to check the Air India website for the responses from Air

India.

5. AI reserves the right not to disclose or clarify any points or issues which AI

considers has no relevance to the Tender.

**********************************************************************


22

8. FINANCIAL BID

Financial bid document is only two page (next page). It should be sealed in a

separate envelope specifying Financial Bid. No other documents need to be

attached with financial bid.

All Supporting documents are to be attached with the technical bid.


23

8. Financial Bid

Name of the Applicant: Dated:

A. Selection Criteria (“Financial Bid”):

That the financial bid of only those Applicants shall be considered who meet all the eligibility

criteria. The applicant who quotes highest Committed business(Total turnover) in the bid- H1,

would be selected.

If there are two or more than two applicants giving the exact same highest bid , then re-bid will

be invited from such applicants only. The re-bid figure should be equal or higher than the

original bid.

The Bidder/Applicant needs to quote only one figure in the Committed Business Column

/Assured Revenue to Air India (in Japanese Yen ) column placed below. The quote should

be covered with a transparent adhesive tape:

Assured Revenue to Air India committed by

GSA annually

Please fill the amount in Figure and words

and cover with transparent adhesive tape

Japanese Yen ------------------

----------------------------------------------------

--

(in Figures and words)

Estimated Annual Available Cargo Capacity

and current rate per Kg. in JYP.

The Current rate is Basic rate + fuel

Surcharges. Further VAL, DGR, Etc

surcharges also accrue to Airlines.

Sector Volume/Flight (Kgs.) Current Rate

in

JPY /Kg.

NRT-DEL 10000 Kgs 70

KIK-HKG 8000Kg s 10

KIK-DEL 2000Kgs 70

• The above are indicative figures only and may

change.

• Plus FSC(Fuel Surcharge- Currently 63 JPY/Kg)

Benchmark/Minimum Assured Annual

Revenue on total capacity deployed by AI.

with financial coverage (Deposit/ Bank

Guarantee ) equivalent to two months sale

over & above other BG.

• This amount excluded the postal mail

income.

JPY 570 Million

Assured Revenue would be worked out quarterly. Any deficit/ shortfall is payable by

GSA according to the assured /Committed Revenue.


Seal of the Company


24

(PLEASE SIGN THE NEXT PAGE OF THE FINANCIAL BID)

Terms & Conditions of the Financial Bid

a. GSA would be paid Commission as per the following revenue

achievement brackets:

b. In case of capacity reduction or induction by Air India, the assured revenue

would be proportionately adjusted and the same would be binding on the GSA.

c. The Successful Bidder would be required to submit a Separate Security

Deposit /Bank Guarantee equivalent to two months of Minimum Assured

Revenue/Business as submitted in the “Financial Bid” .This Security

Deposit/Bank Guarantee would be for settlement of the deficit, if any, of the

actual revenue vis-à-vis the Assured Revenue

d. “Relaxation” The appointed GSA will have a leverage upto 80%(Eighty

Percent) materialization with no penalty on its commitment /assured revenue

for a period of 3 months(three months) from the date of commencement as

GSA.

e. The applicable commission in not accruable/payable on the cargo such as

Interline sales, Mail revenue, Insurance, Taxes, Airport Levies, C.O.D,

COMAT, and Embassy & Government Sales. These will not be included in

the assured Revenue/Business


Seal of the Company

Revenue Slab ORC % Slab as per the Minimum

Assured Revenue

Upto 60% 1.50 % Upto JPY 342 Million

Above 60 upto

70%

2.00% Above JPY 342 Million and

upto JPY 399 Million

Above 70%

upto 80%

2.50% Above 399 Million and upto

JPY 456 Million

Above 80% 3.00% Above JPY 456 Million


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9. Preparation of Bids

A. Language of Bid

The Bid, and all correspondence and documents related to the Bid exchanged by the

Bidder/Applicant and AI shall be written in the English language. Supporting documents and

printed literature furnished by the Bidder/Applicant may be in another language provided they

are accompanied by an authenticated translation from appropriate authority of the relevant

passages in English, in which case, for purposes of interpretation of the Bid, the English

translation shall prevail.

B. Documents Comprising the Bid

The bids should be submitted in two parts, which comprise the following documents:

Part-I Technical Bid

i) The basic mandatory information and eligibility criteria (5. Technical Bid) as listed in

clause1,2 and 3 with all necessary supporting documents/ material / information

required to be submitted in accordance with the Technical Bid and as specified in the

technical bid document. Further all documents mentioned in clause 5 of the Technical

Bid, are to be submitted with the Technical Bid.

ii) All pages should be numbered serially electronically, along with an index of

submissions.

iii) No overwriting or cutting/usage of white correction ink would be accepted in the Bid

Document.

iv) The Technical Bid shall be hard bound/ Spiral Bound and all pages serially

electronically numbered.

Part-II Financial Bid

A. Financial Bid is as per attached format (Two Page) to be filled and submitted in

a separate sealed envelope. Please sign & submit both the pages.

The figure (to be mentioned in words and figures) needs to be filled in and signed.

No other documents to be attached to the financial bid.

B. Each Financial Bid shall be separately sealed and marked in accordance with the

sealing and marking instruction.

C. The financial bid shall be quoted by the Bidder/Applicant in LKR currency.

D. All figures quoted in the Financial Bids shall be mentioned in numbers and words and

in case of discrepancy between the two, the amount mentioned in words shall prevail.

E. The figures quoted in financial bid should be covered with a transparent adhesive

tape.


26

Format and Signing of Bid

A. The Bids shall be typed or written in indelible ink and shall be signed by a person or

persons duly authorized to sign on behalf of the Bidder. All pages of the Technical Bid

and Financial Bid shall be initialed by the person or persons signing the Bid along with

company seal. All entries or amendments shall be initialed by the person or persons

signing the Bid.

B. The Bid shall contain no alterations, omissions or additions, except those to comply

with instructions issued by AI, or as necessary to correct errors made by the Bidder, in

which case all such corrections shall be initialed by the person or persons signing the

Bid.

C. All witnesses and sureties shall be persons of status and probity and their full names,

occupations and addresses shall be printed below their signatures.

Submission of Bids

A. Sealing and Marking of Bids

1) The applicant/ bidder shall submit the bid in two parts, the Technical Bid and

the Financial Bid. Each part of the bid shall be sealed in separate envelopes

and the two sealed envelopes shall be sealed in an outer envelope. The Bid

envelopes shall be superscribed in bold marked as follows:

(a) Outer Envelope:

Technical and Financial Bid for - “Cargo General Sales Agent, Japan”

Mention Tender Reference and date.

THIS ENVELOPE SHOULD HAVE NAME, ADDRESS, E-MAIL,

TELEPHONE NUMBER OF THE APPLICANT/ BIDDER PROMINENTLY

1DISPLAYED.

(b) Inner Envelope, Technical Bid:

Technical Bid for - “Cargo General Sales Agent, Japan” Mention Tender Ref

No. and date release date.

(c) Inner Envelope, Financial Bid:

Financial Bid for - “Cargo General Sales Agent, Japan” Mention Tender Ref

No. and date release date.

2) ALL THE THREE ENVELOPES SHOULD HAVE NAME OF THE

APPLICANT/BIDDER PROMINENTLY DISPALYED


27

3) The outer envelopes shall: be addressed to the Airline at the following address:

Manager,

Air India Ltd.


11th Floor,

C-5-6


Chiyoda-Ku

Tokyo 100 0011

Phone:0081 3 5157 5592

Fax::0081 3 5080 0265


4) If the outer and inner envelopes are not sealed and marked as above, the

Airline will assume no responsibility for the misplacement or premature

opening of the Technical Bid’ and ‘Financial Bid’ and consequent losses, if

any, suffered by the applicant/ bidders. Bids submitted by fax, telex, telegram

or e-mail shall not be entertained and shall be rejected.

B. Deadline for Submission of Bids

Bids must be received by the Airline at the address specified above not later

than the time and date specified in the Invitation for Bid. In the event of the

specified date of submission of bids being declared a holiday for Airline, the

Bids will be received up to the appointed time on next working day.

The Airline may, at its discretion, extend the deadline for submission of bids

by issuing an amendment, in which case all rights and obligations of the Airline

and the applicants/ bidders previously subject to the original deadline will

thereafter be subject to the deadline as extended.

C. Late Bids

Any bid received by the Airline after the deadline for submission of bids will

be returned unopened to the applicant/bidder.

Bid Opening and Evaluation

The date and time for opening of the Bid would be communicated through email

as per the email given by all the applicants on the envelope. First the “Technical

Bid” would be opened and evaluated based on the prescribed qualifications

criteria and requirements, followed by opening of “Financial Bid”. Financial Bid

of, technically qualified bidders only will be opened. No queries from the bidders

as regards the status of evaluation would be entertained.


28

10. Award of Contract

A. Award

As per provisions and criteria of this Tender, AI will award the Contract to the Bidder

who has offered highest Assured Revenue/Business for the period of Contract.

B. Notification of Award

Prior to expiration of the period of bid validity, AI will notify the Successful Bidder by

email that its bid has been accepted. The notification of award will constitute the

formation of the Contract, subject to furnishing of a Financial Security (Cash

Deposit/Bank Guarantee) for Revenue Assured, in accordance with the provisions as

mentioned herein.

C. Security Deposit / Bank Guarantee

(i) Once a Bidder has been declared as the Successful/Qualified Bidder and has been

shortlisted as per the process, the Successful Bidder/Applicant will have to

submit a Security Deposit of equivalent of 45 days sale based on assured revenue

to Air India in LKR for the entire period of contract, which can be annually

reviewed and renewed, if required. The Security Deposit can be submitted in the

form of Bank Guarantee, within 10 (Ten) working days or otherwise as

communicated, on issue of letter of intent or immediately on the day of signing

of Contract. This Security Deposit amount shall be forfeited in full, in case the

Successful Bidder backs out or they fail to operationalize the Contract within 30

(thirty) days or as stipulated on the execution of the same.

(ii) The Successful Bidder would be required to submit a Separate Security Deposit

/Bank Guarantee equivalent to two months of Minimum Assured

Revenue/Business as submitted in the “Financial Bid” .This Security

Deposit/Bank Guarantee would be for settlement of the deficit, if any, of the

actual revenue vis-à-vis the Assured Revenue.

Rate / Freight Charges

The minimum rate/ Freight Charges would be given & Fixed and would continue

to be determined by Air India based on the market parameters /information and

other conditions including trend of demand & supply. The GSA is liable to pay

Air India for the total sale made on behalf of Air India.

D. Signing of Agreement

(a) The Applicant/Bidder who is qualified and selected by the Airline in accordance

with the Tender Documents shall enter into a definitive agreement with the

Airline in the form attached as Annexure B (Draft) for Air India. However the

Successful Bidder/Applicant is to note that the said GSA Agreement, may be

varied, in accordance with the operational requirements and policies of AI, and

also to comply with any applicable laws, regulations etc., as may be stipulated

by any applicable laws as applicable to AI.


29

(b) Within 30 days of the date of signing the Contract, the Successful Bidder shall,

if required, have the same stamped and registered according to the applicable

laws and return the same duly signed and executed on behalf of the Successful

Bidder to AI.

(c) It is clarified that the bid of each applicant/ bidder constitutes its offer to enter

into the Contract as above, read with the terms of the Tender Documents, and

assured business/revenue as per quotation submitted in the “Financial Bid”.

(d) The scope of work to be performed by the Successful bidder for the Airline shall

be as set forth in the Contract attached herewith in Annexure-B.(Draft)

11. Right to accept any Bid and Reject any or All Bids

A. Notwithstanding anything stated above or elsewhere in the Tender

Documents, the Airline reserves the right to accept or reject any bid and to

annul the bidding process and reject all bids, at any time prior to award of

contract, without the Airline thereby incurring any liability to the affected

bidder or bidders or any obligation to inform the affected bidder or bidders of

the grounds for the Airline’s action.

B. The Applicant / Bidder shall provide all the information sought under this

Tender document. The Airline will evaluate only those bids that are received

in the required formats and are complete in all respects. Incomplete and / or

conditional bids shall be liable to rejection.

C. The Airline reserves the right to reject any bid or offer and forfeit the EMD

(as defined above) if:

(a) at any time a material misrepresentation is made or uncovered, or

(b) any ambiguity, non-clarity and/or apparent mistake is/are determined

by the Airline.

Such misrepresentation/improper response shall lead to the disqualification of the

Applicant / Bidder.

D. Save and except as provided in this tender document, the Airline shall not

entertain any correspondence with any applicant / bidder in relation to the

acceptance or rejection of any bid.

12. Undertaking by the Bidder

A. It shall be deemed that by submitting the bid, the Applicant /Bidder has:

i. made a complete and careful examination of the bid document;

ii. received all relevant information requested from the Airline;

iii. accepted the risk of inadequacy, error or mistake in the information

provided in the bid document or furnished by or on behalf of the Airline;


30

and

iv. Agreed to be bound by the undertakings provided by it under and in terms

hereof.

Indemnity

It shall be deemed that by submitting the bid, the Applicant/ Bidder agrees and releases

the Airline, its employees, agents and advisers, irrevocably, unconditionally, fully and

finally from any and all liability for claims, losses, damages, costs, expenses or

liabilities in any way related to or arising from the exercise of any rights and / or

performance of any obligations hereunder and/ or in connection with the bidding

process, to the fullest extent permitted by applicable law, and waives any and all rights

and / or claims it may have in this respect, whether actual or contingent, whether present

or in future.

Modification and Withdrawal of Bids

A. The Applicant / Bidder may modify, substitute or withdraw its bid after

submission, provided that written notice of the modification, substitution or

withdrawal is received by the Airline prior to last date of submission of bid.

No bid shall be modified, substituted or withdrawn by the applicant / bidder on

or after the last date of submission of bid.

B. The modification, substitution or withdrawal notice shall be prepared, sealed,

marked, and delivered in accordance in this document with the envelopes being

additionally marked “MODIFICATION”, “SUBSTITUTION” or

“WITHDRAWAL”, as appropriate.

C. Any alteration / modification in the bid or additional information supplied

subsequent to the last date of submission of bid, unless the same has been

expressly sought for by the Airline, shall be disregarded.

D. Bids for which a notice of withdrawal has been submitted in accordance with

this clause above shall not be opened by the Airline.

E. Withdrawal of a Bid during the interval between the deadline for submission

of Bids and the expiration of the period of Bid Validity specified herein result

in the forfeiture of the EMD.

Applicants/bidders are advised that pre-qualification of applicants will be entirely at

the discretion of the Airline. Applicants will be deemed to have understood and agreed

that no explanation or justification on any aspect of the bidding process or selection

will be given by the Airline.


31

Property of the Airline

All documents and other information supplied by the Airline or submitted by any

applicant / bidder pursuant to this tender document shall remain or become the property

of the Airline. Applicants / bidders are to treat all information as obtained by it pursuant

to this Tender as strictly confidential and shall not use it for any purpose other than for

preparation and submission of their bids. The Airline will not return any bid or any

information provided along therewith.

Termination of the Contract

In the event of default or breach of any condition of the Contract by the Successful

Bidder, and as per the conditions mentioned in the Contract, Air India reserves the

right to terminate the Contract as per the provisions mentioned and to claim damages

from the Successful Bidder, and also reserves the right to award the contract to another

third party at the cost and risk of the Successful Bidder.

Price negotiation

As it is not the general norm for Air India to carry out price negotiations following

evaluation of the Financial Bid, the applicants / bidders are advised to submit their best

and final quotes in response to the Tender document. Air India however, reserves the

right to carry out negotiations in exceptional cases with the Successful Bidder.

Validity of prices

The Minimum Assured Business/Revenue quoted in the “Financial Bid” shall remain

as a bench-mark of the contract.

Corrupt or Fraudulent Practices

The Airline will reject a proposal for award if he determines that the Bidder

recommended for award has engaged in corrupt or fraudulent practices in competing

for the contract in question. The Airline will declare the firm ineligible, either

indefinitely or for a stated period of time, to be awarded a contract by Air India Limited

if it at any time determines that the firm has engaged in corrupt or fraudulent practices

in competing for the Contract, or during execution. AI may also declare a bidder

ineligible either indefinitely or for a stated period of time, to be awarded a Contract by

if it at any time determines that the bidder has engaged in corrupt or fraudulent practices

in competing for the Contract, or during execution, or has violated any of the terms of

the tender process being conducted under this Bid Document.

(a) “corrupt practice” means behavior on the part of officials in the public or

private sectors by which they improperly and unlawfully enrich themselves

and/or those close to them, or induce other to do so, by misusing the position

in which they are placed, and it includes the offering, giving, receiving, or

soliciting of anything of value to influence the action of any such official in the

procurement process or in contract execution; and


32

(b) “fraudulent practice” means a misrepresentation of facts in order to influence

a procurement process or the execution of a contract to the detriment of the

Airline or, and includes collusive practice among bidders (prior to or after bid

submission) designed to establish bid prices at artificial non-responsive levels

and to deprive the Airline or of the benefits of free and open competition.

Governing law and Jurisdiction

This bid document and the entire bidding process shall be governed by and construed

in accordance with the laws of India. Any dispute or difference whatsoever arising out

of and/or in connection with this Tender document and the Contract shall be subject to

the exclusive jurisdiction of the competent courts in Delhi (India) only.

********************************************************************


33

Annexure A : Integrity Pact

[Attached as a separate document]

Annexure B : Form of Contract (General Sales Agent Agreement)

Sample Draft

[Attached as a separate document]

Note: The form of the agreement attached as annexure is a

generic format, and the Airline may, prior to execution of the

agreement, make such changes to the format, as may be

required by the Airline in its sole discretion, including without

limitation changes specific to a particular country.