Implementation of Enterprise Resource Planning at Islamabad Electric Supply Company Limited (IESCO)

Transcription

1 Implementation of Enterprise Resource Planning at Islamabad Electric Supply Company Limited (IESCO) Selection of ERP Consultant to assist Islamabad Electric Supply Company Limited for preparation of study, Bid Document & Program Management of Implementation of ERP Single Stage RFP Identification No : - 001/2011 : Two Envelope Procedure Issued by Office of Add: Director General (IS) IESCO Computer Centre, Nazim Uddin Road, F-6/1, Islamabad Phone Fax #

2 TABLE OF CONTENTS DEFINITIONS AND ABBREVIATIONS... 1 BACKGROUND... 3 SECTION-I: INSTRUCTION TO BIDDERS NAME OF THE UTILITY WEBSITE OF THE UTILITY PERIOD OF ENGAGEMENT CANCELLATION OF APPOINTMENT CONFLICT OF INTEREST SUBCONTRACTING RIGHTS OF USE INTELLECTUAL PROPERTY AREA OF WORK CONFIDENTIALITY BID SECURITY / EARNEST MONEY DEPOSIT (EMD) PERFORMANCE SECURITY BID VALIDITY PERIOD ACCEPTABLE BANKS Escalation of Prices Special Conditions Acceptance /Rejection Formulation of Cartel or Collusion Payment Clause Late Bid Modification of Bid Amendment of Bid Schedule Sealing & Marking of Bids Delivery Schedule Forfeiture of Bid Bond List of documents submitted by the bidder Delivery Period Forfeiture of Security Bond /Bank Guarantee (Performance Bond) Disclosure Clause SECTION-II: DATA SHEET

3 SECTION-III: TECHNICAL REQUIREMENT SECTION-IV: SCOPE OF WORK ROLE OF ERP CONSULTANT: PHYSICAL AREA OF WORK OUTLINE OF TASKS TO BE CARRIED OUT AND DELIVERABLES SECTION-V: BID EVALUATION METHODOLOGY SECTION-VI: GENERAL CONSITIONS OF CONTRACT (GCC) SECTION-VII: SPECIAL CONDITIONS OF CONTRACT SECTION VIII: CONTRACT FORMS AGREEMENT PERFORMANCE SECURITY ADVANCE - BANK GUARANTEE SECTION-IX: BIDDER RESPONSE FORMS FORM NO F-1: RFP Submission Sheet FORM NO F-2: PERFORMANCE CERTIFICATE FORM NO F-3a: Project Experience FORM NO F-3b: Project Experience FORM NO F -4: COMPANY INFORMATION FORM NO F-5: CVS FORM NO F-6: DEVIATIONS/NO DEVIATIONS CONFIRM ATION, COMMENTS & SUGGESTIONS 64 APPENDIX-1: AGREEMENT APPENDIX -2: PERFORMANCE SECURITY BANK GUARANTEE APPENDIX -3: ADVANCE BANK GUARANTEE APPENDIX -4: Financial Bid (To be submitted separately)

4

5 DEFINITIONS AND ABBREVIATIONS The following words and expressions s h a l l have the meanings hereby assigned to them: a) Applicable Law" means the laws and any other instruments having the force of law in the Government's country, as they may be issued and in force from time to time; b) Bank or Banks, refers to all scheduled Pakistani Banks. c) Contract means the Agreement entered into between the Purchaser (IESCO) and the ERP Consultant (Consultant), together with the Contract Documents referred to therein, including all attachments, appendices, and all documents incorporated by reference therein. d) Contract Documents s h a l l mean the following documents listed, including any amendments thereto be read and construed a s part of this Agreement, viz.: i. the Detailed award of contract; ii. the Service level agreement; iii. the Special Conditions of Contract; iv. the General Conditions of Contract; v. the Schedule of Services; vi. the Instructions to bidders; viii. the Purchaser s Notification to the Consultant for Award of Contract; vi. Vendor s response (proposal) to the RFP, including the Bid Submission Sheet and the Price Schedules submitted by the Consultant; ix. Section VIII Contract Forms; x. Acceptance of purchaser s notification; e) Contract Price means the price payable to the Consultant as specified in the Agreement, subject to such additions and adjustments thereto o r deductions there from, a s may be made pursuant to the Contract. f) Day means calendar day. g) Delivery means the transfer of the Goods and/or Services from the Consultant to the Purchaser in accordance with the terms and conditions set forth in the Contract. h) Completion shall mean the completion of the Related Services by the Consultant in accordance with the terms and conditions set forth in the Contract. 1

6 i) Effective Date" means the date on which this Contract comes into force and effect pursuant to Clause 8 of GCC; j) GCC mean the General Conditions of Contract. k) Goods means all hardware, software, networking equipment and/or other equipment accessories and services that the Consultant is required to supply to the Purchaser under the Contract. l) Government means the Government of Pakistan. m) Intellectual Property Rights means any patent, copyright, trademark, trade name, service marks, brands, proprietary information, whether arising before or after the execution of this Contract and the right to ownership and registration of these rights. n) "Party " means the IESCO or the ERP Consultant, a s the case may be; o) Personnel" means persons hired by the ERP Consultant as employees and assigned to the performance of the Services o r any part thereof; "Foreign Personnel" means such persons who at the time of being so hired had their domicile outside the Government's country ; and "Local Personnel" means such persons who at the time of being so hired had their domicile inside the Government's country ; p) "Project" means all Activities covered under present contract. q) Purchaser s Country s h a l l means Pakistan. r) Purchaser means the entities purchasing the Goods and/or Services, a s specified in the SCC. s) Related Services means the services to be provided a s per the requirements / conditions specified in the Contract. In addition to this, the definition would also include other related/ancillary services that may be required to execute this Contract. t) "Starting Date" means the date referred to in Clause 8 of GCC; u) SCC means the Special Conditions of Contract. v) "Services" means the work to be performed by the ERP Consultant pursuant to this Contract for the purposes of the Project, as described in the Scope of Work hereto; w) Subcontractor means any natural person, private or government entity, o r a combination of the above, including its legal successors o r permitted assigns, to whom any part of the Goods to be supplied or execution of any part of the Services is subcontracted by the Consultant. ERP Consultant cannot sub-contract any part of its obligation under the present contract. 2

7 x) Consultant means the natural person, private or government entity, o r a combination of the above, whose bid to perform the Contract has been accepted by the Utility and is named a s such in the Agreement, and includes the legal successors or permitted assigns of the Consultant. Consultant has been used to mean ERP Consultant in this document. y) The M/o W & P is the Ministry of Water & Power, Govt. of Pakistan. z) The Site shall mean all identified locations within the jurisdiction of IESCO, where the Consultant carries out any installation of Goods or is required to provide any Services. aa) "Third Party " means any person or entity other than the Government, IESCO, the ERP Consultants or any other party a s implied by the usage and context bb) OEM means the Original Equipment Manufacturer of any equipment / system / software / product. cc) dd) ee) ff) gg) Kick Off Meeting means a meeting convened by the Purchaser to discuss and finalize the work execution plan and procedures with the ERP Consultant. in writing means communicated in written form with proof of receipt. Utility Islamabad Electric Supply Company Limited (IESCO). Owner means the Utility calling for RFP. ERP Consultant means the agency appointed to perform services for the Utility under this contract, sometime referred as word Consultant only. BACKGROUND Islamabad Electric Supply Company Limited (IESCO) is an ex-wapda DISCO owned by the Government of Pakistan. As a result of structural reforms introduced by the Government in the Power Sector, IESCO was incorporated as a Public Limited Company having Registration No. L OF and Certificate of Incorporation No. JRL-7586 dated under Companies Ordinance Accordingly, IESCO has been granted a Distribution License bearing No. 01/DL/2001 by National Electric Power Regulatory Authority on November 02, IESCO is providing a public utility service of distribution and supply of electricity within the territories as defined in its License. To achieve productivity & effectiveness, IESCO intends to acquire industry preferred ERP solution to be used to support its functions to achieve optimum productivity. To get things done right first time, IESCO is desirous to engage companies which will help IESCO to be ERP enabled company. 3

8 IESCO is looking forward for the services of capable National or International companies having track record and domain knowledge of distribution companies like IESCO for the consultancy services. The firm shall be responsible for the development of Program Governance Infrastructure to ensure complete Technology Transfer to IESCO. The system will comprise of Finance, Inventory, HR, Customer Care and Billing in 1 st phase. The estimated time line for this assignment is 3-years from kick off to completion. It is understood that the bidder has gone through the entire tender document and has complete understanding of the terms and conditions, scope of work etc mentioned here along with their implications. SECTION-I: INSTRUCTION TO BIDDERS 1. Name of the Utility. Islamabad Electric Supply Company Limited (IESCO) 2. Website of the Utility 3. Period of Engagement T i l l the successful completion of all responsibilities by the ERP Consultant a s per the engagement contract for the Utility o r a maximum period of 3 years from the date of Appointment. In case there is spill over of work beyond 3 years, Utility can continue to avail services of ERP consultant with mutual agreement between them. The cost of all such services however s h a l l be borne by Utility. 4. Cancellation of Appointment The period of appointment is subject to cancellation of appointment due to any of the reasons mentioned hereunder. If the ERP Consultant is found to have submitted false particulars / fake documents for selection as ERP consultant or for the award of assignment. The ERP Consultants performance on the job will be constantly monitored for quality, commitment to delivery period mentioned in contract with the Utility, adherence to the guidelines, Statutory regulations, Conduct/ Discipline etc., while executing jobs. Any deviations from stated conditions can lead to appropriate deterrent action as deemed fit by Utility. If the ERP Consultant refuses to execute the job at his agreed scope/quoted rates, after the utilities issue the letter of intend (LoI). 4

9 Manipulation of rates by cartelization s h a l l be viewed very seriously by the Utility. If such a situation comes to the notice of the Utility and/or there are reasons/ circumstances for the Utility to believe so, the concerned ERP Consultants will be called in to give justification of proposal/rates quoted by them. If they are not able to give a proper or satisfactory justification of their quoted proposal /rates, their appointment is liable to be cancelled. Any other reason deemed fit by the Utility for cancellation. Such ERP Consultant, whose appointment is cancelled due to any of the above reasons, will not be considered for subsequent assignments for a period of three years. 5. Conflict Of Interest The ERP consultant and any of its affiliates/consortium members hired to provide services for the proposed assignment in IESCO, will not be eligible to work as any of the implementation agencies/ consultants in IESCO i.e. the ERP Consultant and affiliates cannot Directly or through its consortium partners bid a s ERP Implementation agency in the IESCO. Get associated a s Consultant / Advisor/ Implementation Agency or in any other capacity with any of the agencies taken part in the bid process of IESCO during the implementation of the ERP. The Utility considers a conflict of interest to be a situation in which a party has interests that could improperly influence that party s performance of official duties or responsibilities, contractual obligations, o r compliance with applicable laws and regulations, and that such conflict of interest may contribute to or constitute a prohibited corrupt practice. This may include but not limited to circumstances leading to: - a) Conflict between consulting activities and procurement of goods, works or services (other than consulting services for ERP): A firm that has been engaged by the Utility to provide goods, works, or services (other than consulting services for ERP) for a project, and each of its affiliates, s h a l l be disqualified from providing consulting services related to those goods, works or services. Conversely, a firm hired to provide consulting services for the preparation o r implementation of ERP, and each of its affiliates, s h a l l be disqualified from subsequently providing goods, works or services (other than consulting services) resulting from or directly related to the firm s consulting services for such preparation o r implementation. 5

10 b) Conflict among consulting assignments: Neither consultants (including their personnel and sub-consultants) nor any of their affiliates s h a l l be hired for any assignment that, by its nature, may be in conflict with another assignment of the consultants. c) Relationship with Utility s staff: Consultants (including their personnel and sub-consultants) that have a business or family relationship with a member of the Utility s staff (or of the project implementing agency s staff ) who are directly o r indirectly involved in any part of: i. The preparation of the TOR of the contract. ii. The selection process for such contract, o r. iii. Supervision of such contract may not be awarded a contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to the IESCO throughout the selection process and the execution of the contract. ERP consultant cannot participate in the bidding process of ERP implementing. An ERP Consultant and agency may be considered to be in a conflict of interest with one or more parties in this process if they have controlling shareholders in common. Participation by Bidder(s) with a conflict of interest situation will result in the disqualification for both. 6. S ubco nt r act in g The ERP Consultant s h a l l not be permitted to sub-contract any part of its obligations under the Contract with the IESCO subject to prior approval of IESCO. 7. R i g h t s o f U s e A l rights of use of any process, product, service o r facility developed or any other task performed by the ERP Consultant during execution of the engagement for the Utility would lie exclusively with the Utility, encumbrances and other third party rights and the ERP Consultant shall, wherever required, take all steps that may be necessary to ensure the transfer of such ownership in favour of the IESCO. 8. I n t e l l e c t u a l P r o p e r t y The IESCO and Ministry of Water & Power, Government of Pakistan shall own and have a right in perpetuity to use all newly created Intellectual Property Rights which have been developed solely during execution of the Contract that will be awarded further by the IESCO and or Ministry of Water and Power, Government of Pakistan, including but not limited to all templates, reports, designs, records, reports, designs, application configurations, data and written material, products, specifications, drawings, source code and 6

11 object code and other documents which have been newly created and developed by the ERP Consultant solely during the performance of Related Services and for the purposes of inter-alia use or sub-license of such Services under this Contract. The ERP Consultant should undertake to disclose all such Intellectual Property Rights arising in performance of the Related Services to the Utility and execute all such agreements/documents and file all relevant applications, effect transfers and obtain all permits and approvals that may be necessary in this regard to effectively transfer and conserve the Intellectual Property Rights of the Utility. To the extent that Intellectual Property Rights are unable by law to so vest, the ERP Consultant assigns those Intellectual Property Rights to Utility on creation. The ERP Consultant s h a l l be obliged to ensure that all approvals, registrations, licenses, permits and rights etc. which are inter-alia necessary for use of the goods supplied / service provided by the ERP Consultant, the same shall be acquired in the name of the Utility, and the same may be assigned by the Utility to the ERP Consultant solely for the purpose of execution of any of its obligations under the terms of the Contract. However, subsequent to the term of the Contract, such approvals, registrations, licenses, permits and rights etc. s h a l l endure to the exclusive benefit of the Utility. The ERP Consultant s h a l l ensure that while ERP uses any software, hardware, processes, document or material in the course of performing the Services, ERP does not infringe the Intellectual Property Rights of any person and the ERP Consultant s h a l l keep the Utility indemnified against all costs, expenses and liabilities howsoever, arising out of any illegal or unauthorized use (piracy) or in connection with any claim or proceedings relating to any breach or violation of any permission/license terms or infringement of any Intellectual Property Rights by the ERP consultant o r its personnel o r personnel of any of its consortium members or sub-contractors during the course of performance of the Related Services. In case of any infringement by the ERP Consultant, the ERP Consultant s h a l l have sole control of the defense and all related settlement negotiations. Subject to above sub-clauses on intellectual property, the ERP Consultant s h a l l retain exclusive ownership of all methods, concepts, algorithms, trade secrets, software documentation, other intellectual property or other information belonging to the ERP Consultant that existed before the effective date of the contract. 9. Area of Work The ERP consultant may be required to work any where in the jurisdiction of IESCO within its license area. 7

12 10. Confidentiality The ERP Consultant/Consortium and the personnel of any of them s h a l l not either during the term or within two (2) years after the expiration of this contract, disclose any proprietary or confidential information relating to the assignment, the Services, this Contract o r the Owner s business o r operations without the prior written consent of the owner. Utility will ensure confidentiality of the bids submitted. 11. Bid Security / Earnest Money Deposit (EMD) The bidder will submit a bid security of Rs. 5,00,000/- (Five Hundred thousand only). 12. Performance Security In order to be considered, the tender must be accompanied by a bid security as per clause 11 of above in shape of Bank Guarantee, CDR & Demand Draft, valid for 180 days from the date of submission of bid issued in favour of Chief Executive Officer IESCO, Islamabad. The bid security issued by any scheduled bank of Pakistan will be acceptable. Cheques will not be acceptable in any case. Within (15) days of the receipt of notification of award from the Purchaser, the successful Bidder shall furnish the Performance Security in accordance with the GCC, using or that purpose the Performance Security Form included in Section VIII, Contract Forms. The value of Performance Security by the successful bidder would be 10% of the bid value from any scheduled bank of Pakistan. The Performance Security would be valid t il l the completion of the assignment or any such extended period as decided by the Utility. Bid Security and Performance Guarantee shall be furnished on non-judicial stamp paper of the value prescribed by the Government. 13. Bid Validity Period Bid should be valid for a period as specified in the Data Sheet from the date of opening of financial proposal 14. Acceptable Banks All bank related documents should be submitted only from scheduled banks of Pakistan. 15. Escalation of Prices The quoted prices will be firm and final and will not be escalated for any reason what so ever. The prices quoted as such should be clear and free of any if s and but s or made subject to any other condition or circumstances. 8

13 16. Special Conditions The complete offer should be submitted as under:- a) The original and all copies of the Bid shall be typed or written in indelible ink and shall be signed by the Bidder or a person or persons duly authorised to bind the bidder to the contract. The authorisation shall be indicated by written power-of-attorney accompanying the Bid. All pages of the Bid, except for un-amended printed literature, shall be initialled by the person or persons signing the Bid. b) The bid shall contain no interlineations, erasures or over-writing except as necessary to correct errors made by the Bidder, in which case such corrections shall be initialled by the person or persons signing the Bid. c) Non-submission of the required information/data shall render the offer liable for rejection. d) Electronic bid will not be acceptable. 17. Acceptance /Rejection IESCO reserves the right to accept or reject any or all of the bids or a part thereof at any stage without assigning any reason. 18. Formulation of Cartel or Collusion If formulation of Cartel or Collusion is observed in any of the bid/s, action will be taken against the relevant bidder/s which may tend to black listing and /as all remedies available under law. 19. Payment Clause 100% payment will be made by Finance Director IESCO, Islamabad on the invoice/s raised by the Consultant against each milestone on production of following documents:- 1. a. Invoice in triplicate duly signed and stamped by the Consultant. b. A certificate by the Consultant to the effect that he had not claimed the relevant payment in his previous claims. c. A certificate issued by standing Technical Committee of IESCO certifying that the relevant claim is correct and the Consultant has successfully accomplish the task against respective milestone. d. Letter issued by the Add. Director General (IS) for acceptance of Performance Guarantee. e. GST Invoice (If applicable). f. A certificate issued by the Excise & Taxation Department, certifying the fact that all payable professional taxes are cleared by the Consultant. 9

14 2. The payment of GST fixed by the Government will be made to the Consultant on production of original GST return cum payment Challan. 3. All above documents will be pre-audited by Finance Director before release of payment. 4. The expenditure will be charged to the special budgetary provision approved by NEPRA for Account Head ERP and as such cost of Consultancy will be capitalized under relevant Account Head of ERP. 5. Partial deliveries & part payments will not be allowed and payment shall be released only after achievement of milestone/s as described under Section 1.8 of special conditions of contact of this bidding documents. 20. Late Bid Bidder will be himself responsible for ensuring that his Bid is submitted in accordance with the instructions stated, herein. Any bid not submitted by the deadline prescribed for submission of Bids will not be considered even if it becomes late as a result of circumstances beyond the Bidder's control. 21. Modification of Bids The Bidder may modify or withdraw his Bid after the Bid's submission, provided that written notice of the modification or withdrawal is received by the purchaser prior to the deadline prescribed for submission of Bids. 22. Amendment of Bid Schedule i) At any time prior to the deadline for submission of Bids, the purchaser may, for any reasons, whether at its own initiative or in response to a clarification requested by a prospective Bidder, modify the Bid Schedule/Bidding Documents by amendment. ii) The amendment will be notified in writing or by Fax or Cable to all prospective Bidders who have received the Bid Schedule/Bidding Documents and will be binding on them. 10

15 23. Sealing and Marking of Bids i) The Bidder shall seal the original and each copy of the bid in an inner and an outer envelope, duly marking the envelopes as "Original" or "Copy" ii) iii) The inner and outer envelopes shall be:- a) Addressed to the purchaser at the following address:- The Add. Director General (IS), IESCO Computer Centre, Nazim Uddin Road, F-6/1, Islamabad. b) Bear the nomenclature of the services, the invitation for Bids (IFB) number, and the words "DO NOT OPEN BEFORE 11:30 A.M on (Give here exact date of opening of tender). c) In addition to above, the inner envelope shall indicate the name and address of the Bidder to enable the bid to be returned unopened in case it is declared "Late". If the outer envelope is not sealed and marked as required by Clause-23 (ii), the purchaser will assume no responsibility for the bid's misplacement or its premature opening. 24. Delivery Schedule Schedule of Consultancy Services will start from the date of award of Contract. 25. Forfeiture of Bid Bond IESCO will have the right to forfeit the Bid Security if the Contractor:- i) Fails to supply Performance Bond /Security within the time specified in notification of award issued by IESCO. ii) Commits any breach of Bid Conditions. 26. List of Documents to be submitted by the bidder i) Technical Proposal duly supported by all the relevant documents / experience certificates, on the prescribed formats as attached in this RFP in Section IX under heading Bidder Response Form from F-1 to F-6. ii) Financial Proposal. iii) Bid Security along with original deposit receipt issued against the purchase of bidding documents. iv) Authorization letter issued by the bidder in favour of person participating in the tender opening process and authorized for making further correspondence with the purchaser, attesting three 11

16 specimen signatures of the authorized person with Computerized National Identity Card (CNIC) No. along with a copy of CNIC. This authorization shall be issued on letter head of the principal bidder. v) Each page of the bidding document is to be signed and stamped by the bidder or his authorize Rep. 27. Delivery Period Delivery Period shall be as per clause 3 titled Scope of Work which will commence w.e.f the date of award of contract. Delivery period is the essence of contract and delivery must be completed not later than the dates specified. 28. FORFEITURE OF SECURITY BOND / BANK GUARANTEE (Performance Bond) The ERP Consultant will have the right to forfeit the Security Bond / Bank Guarantee (Performance Bond):- (A) (B) If the ERP Consultant:- i) Fails to provide the services within the time specified. ii) Commits any breach of contract. For other reasons specified in the Contract by the contracting officer for forfeiting the security deposit. If the forfeiture of the security deposit does not compensate the contracting officer for losses suffered due to non-delivery or breach of contract or for any other reasons, the Contracting Officer will have a right to forfeit other security deposits or to recover the same from any other security deposit made in favour of any other unit of PEPCO/NTDC/IESCO or from any moneys due to the Contractor from any unit of PEPCO/NTDC/IESCO. 29. DISCLOSURE CLAUSE The Consultant hereby declares that it has not obtained or induced the procurement of any contract, right, interest, privilege or other obligation or benefit from Government of Pakistan or any administrative sub division or agency thereof or any other entity owned or controlled by it (GOP) through any corrupt business practice. Without limiting the generality of the foregoing the Consultant represents and warrants that it has fully declared the brokerage, commission, fees, etc paid or payable to anyone and not given or agreed to give and shall not give or agree to give to anyone within or outside Pakistan either directly or indirectly through any natural or juridical person, including its affiliate, agent, associate, broker, consultant, director, promoter, shareholder, sponsor or subsidiary, any commission, gratification, bribe, finder s fee or kickback, whether described as consultation fee or otherwise, with the object of obtaining or including the procurement of a contract, right, 12

17 interest, privilege or other obligation or benefit in whatsoever from GOP, except that which has been expressly declared pursuant hereto. The Consultant certifies that it has made and will make full disclosure of all agreements and arrangements with all persons in respect of or related to the transaction with GOP and has not taken any action or will not take any action to circumvent the above declaration, representation or warranty. The Consultant accepts full responsibility and strict liability for making any false declaration, no making full disclosure, misrepresenting facts or taking any action likely to defeat the purpose of this declaration, representation and warranty. It agrees that any contract, right, interest, privilege or other obligation or benefit obtained or procured as aforesaid shall, without prejudice to any other right and remedies available to GOP under any law contract or other instrument, be voidable at the option of GOP. Not withstanding any right and remedies exercised by GOP in this regard, the Consultant agrees to indemnify GOP for any loss or damage incurred by it on account of its corrupt business practices and further pay compensation to GOP in an amount equivalent to ten time the sum of any commission, gratification, bribe, finder s fee or kickback given by the Consultant as aforesaid for the purpose of obtaining or inducing the procurement of any contract, right, interest, privilege or other obligation or benefit in whatsoever form from GOP. Please acknowledge receipt in token of acceptance at the earliest, but not later than 15 days from the date of purchase order. 13

18 SECTION-II: DATA SHEET 1.1 The Owner will provide the following inputs: 1.2 The documents enclosed are: Any information or assistance required for the successful completion of the assignment subject to availability and conformity with the existing legal system at that time 1. Data Sheet 2. Scope of Work 3. General conditions of contract 4. Special conditions of contract 5. Payment Terms 1.3 Bid Security / Ernest Money Deposit (EMD) Earnest Money Deposit of Rs. 5,00,000/- of Financial Bid in the form of Bank Guarantee /Demand Draft/CDR in favour of CEO, IESCO, issued by a scheduled bank of Pakistan. 1.4 Validity period One Hundred & Eighty (180) Days from the date of opening of Financial Bid cum commercial proposal. 1.5 Commencement As per Letter of Award /Letter of Intent. of Assignment 14

19 SECTION III: TECHNICAL REQUIREMENT The bidder is an entity and posses sufficient experience in utility sector with following quality Criteria: Financials: Should have a turnover of at least Rs. 50 Million in the last audited financial years. Should have positive net worth in the last audited financial years Experience. Experience Should have worked successfully with at least one Utility (Power/Gas/Telecom Sectors) Company in providing ERP/IT consulting in any of the these areas Strategy, Advisory, Efficiency IT-Services, Improvements, Implementation, Program Management, in the last three financial years. No. 1 The team personnel proposed for this implementation must have relevant consulting or implementation experience in their respective area of work, and the following minimum employee count. Field ERP (Financial Management, HR Management, Supply Chain Management) Advisory /Project Governance Minimum resume count that needs to be submitted with 10 year experience Utility QR Requirement 2 employees 2 Bid Management 2 employees 3 Business Analyst 2 employees 4 Quality Assurance 2 employees 5 Customer Care and billing specialist 2 employees Others: Minimum one expert for each of 5 field ERP Consultant for a Utility cannot participate in the bidding process for ERP Implementation in the same Utility. 15

20 SECTION-IV : SCOPE OF WORK The scope of work shall include technical and financial consultancy services for the entire duration of the assignment. The ERP Consultant s h a l l carry out the following tasks:- 1. Role of ERP Consultant: Preparation of Feasibility Studies. Complete Requirements Gathering. RPF Development for main contract through consultative process. Help in Tendering and its evaluation. Contract definition and implementation methodology. Project Management and Monitoring. Connectivity and hardware assessment and its monitoring. Defining /Monitoring User Acceptance procedures. Strategy making and monitoring of implementation/ testing/ Roll-out. Status Evaluation. Quality Assurance. Follow-up system support and coordination, etc. 2. Physical Area of Work Any where in the jurisdiction of IESCO i.e. Islamabad, Rawalpindi, Attock, Jhelum and Chakwal Districts. 16

21 3. Outline of Tasks to be carried out and Deliverables Any work, as and when required for smooth and timely execution of the assignment may be supported by the ERP consultants. Utilities may make all possible efforts to provide support and help to the extent possible; however the final responsibility of the same may rest with the consultants. S.N Outline of Tasks to be Carried out Deliverable 1 Preparation of Feasibility Studies Time from award of Contract Consultant will analyze the business processes, environment, system/ technology/ H.R requirements and expertise of IESCO. This analysis will provide him a detailed understanding of the work processes, information flow, decision-making, and planning channels at IESCO. Consultant will also conduct a study of the existing infrastructure (software, hardware, LAN / WAN). He will prepare a feasibility study report identifying issues in the existing processes along with recommendations to IESCO management. On the basis of the feasibility study he will finalize the following with IESCO management: Assignment purpose and objectives. ERP Technology Requirements. IESCO Business requirements. IESCO Reporting requirements. (For Management, NEPRA, MOW&P, World Bank etc). Definition of scope. Detailed work plan. 2 Complete Requirements Gathering Consultant will identify the business and technical requirements covering the full scope of the expected outcomes. i. Business Processes (and re-engineering requirements). ii. Core ERP & billing skills and competencies. iii. Organization structure requirement. iv. Required technology (Software/Hardware/ connectivity). Based on the above information following will be documented. Complete Report A report including all documents mentioned at a - h 0-1 M (01 Month) 0-1 M (01 Month) 17

22 a. HR requirement. b. Business /Business re-engineering. Requirements. c. Technical infrastructure (software, hardware, network etc.). d. Information processing requirement. e. Volume of transactions. f. No. of user and their information access mechanism. g. Data migration needs. h. Reports requirements. 3 Identification of Potential Consultants The Consultant will identify the most fit Industry preferred solution based on best practices, keeping in mind the IESCO requirements assessed in previous steps. He will invoke the potential Consultant so that IESCO could be benefited with an healthy competition between the solution provider. 4 RFP Development through consultative process Based on the 1 st three steps the consultant will draft a comprehensive RFP for main tender for approval of IESCO management. The key activities will include: Preparation of a realistic time frame for implementation based on IESCO current capabilities. Drafting of evaluation criteria based on PPRA guide lines and observing all rules and regulations. Preparation of a comprehensive scope of work based on business requirements by indicating the company minimum requirements, to be met by solution provider. Outlining experience level requirement for selection of an appropriate vendor. Drafting of user training requirement. He will include a milestone based payment, terms and conditions. Describing all terms & conditions of contract to ensure the timely & accurate delivery by contractor by suggesting the penalty clauses in case of delay & recovery of damages due to non-delivery etc. The contractual conditions specified should be transparent and based on PPRA rules & regulations. A report RFP for Main Tender 1-2 M (01 Month) 1-2 M (01 Month) 18

23 Preparation of standard formats & forms in RFP to facilitate vendor as well as IESCO for evaluation of vendors on a required standard. 5 Tendering and its evaluation Consultant will assist in tendering, comparative evaluation of proposals, validating ERP vendor s representations, leading to a binding contract, Key activities will include: Provide assistance in tendering process in accordance with Govt/PPRA rules. Assist to conduct pre-bid conference. Assist in evaluation of proposals as per set criteria in RFP. Conducting presentations by venders for IESCO management. Verifying the proposals and the documents authenticity. Finalizing the vender assessment according to evaluation criteria. Help in documentation for approval and signing of contract process. 6 Contract Definition He will draft the contract by ensuring the following: a. Proper technology acquisition. b) A comprehensive implementation methodology. c) Redressal of Technical issues d) Ensure As is To be documentation. e) An elaborated roll out strategy. f) Testing methodology. g) Data migration. h) Integration. i) Defining standards and quality. a. Rights and Obligations including ownership and licensing of intellectual property, maintenance, warranties, arbitration procedures, upgrade terms, and fitness for purpose including security, escrow and access rights of all parties in the contractual terms for the acquisition of ERP solution. b. Service Level Requirements for all critical ERP services based on the requirements and ERP capabilities covering vendor commitments, service support requirements, quantitative and qualitative metrics for measuring the service Draft Contract 2-5 M (03 Months) 5-6 M (01 Month) 19

24 signed off on by the stakeholders. Defining roles and responsibilities, including oversight of the service level requirements. The consideration of availability, reliability, performance, capacity for growth, levels of support, continuity planning, security and demand constraints. 7 ERP Implementation Management & Monitoring Development of planning document. ERP Implementation Monitoring and Status Reporting. Issues Management. Risk Management. User Trainings. 8 Defining user Acceptance procedures, Monitoring Installation and roll-out (Strategy & Assurance). Project Plan and Charter Periodic Status Reports Issues Reports Risk Reports 5-33 M (28 Months) Development of Operational Acceptance Testing scripts, User Acceptance tests. He will ensure Quality Assurance. He will monitor processes and procedures to ensure that delivered system is in compliance with IESCO s requirements agreed in TOR and in adherence to quality standards. Perform assessment of the deployed solution, hardware, connectivity etc. to ensure contractual / technical requirements. Ensure that deliverables are in adherence to quality standards. Defining Service Level Agreement etc. Monitor ERP Implementation and Rollout and ensure installation is in accordance with IESCO s requirements agreed in contract and in adherence to quality standards. 9 Post Implementation Follow-up system support. Completion Reporting. Quality Assurance Report Implementation Implementation Completion Report 5-33 M (28 Months) M (03 Months) The deliverables mentioned are indicative only, and Utilities can be more specific suiting to its need and requirements. 20

25 SECTION V BID EVALUATION METHODOLOGY The following is the Bid process/ evaluation methodology that will be adapted by Utilities for appointment of ERP Consultants. RFPs will be given to all applicants /participants. Single Stage Two envelope Procedure:- The bid shall comprise a single package containing two separate envelopes. Each sealed envelop shall contain separately the financial proposal and the technical proposal. The envelopes shall be marked as FINANCIAL PROPOSAL and TECHNICAL PROPOSAL in bold and legible letters to avoid confusion. Initially, only the envelope marked TECHNICAL PROPOSAL shall be opened. The envelope marked as FINANCIAL PROPOSAL shall be retained in the custody of the procuring agency without being opened. Please also supply a copy of both proposals (i.e. Technical & Financial) by marking word Copy on top of envelop and then packed both in one main envelop. The original copies are also required to be marked as ORIGINAL on top of envelop. In case if copy is used to confirm any issue and found a difference between original and copy, the original will govern. The procuring agency shall evaluate the technical proposal in a manner prescribed in advance, without reference to the price and reject any proposal which does not conform to the specified requirements. During the technical evaluation no amendments in the technical proposal shall be permitted. The financial proposals of bids shall be opened publicly at a time, date and venue announced and communicated to the bidders in advance. After the evaluation and approval of the technical proposal the procuring agency, shall at a time within the bid validity period, publicly open the financial proposals of the technically accepted bids only. The financial proposal of bids found technically nonresponsive shall be returned un-opened to the respective bidders; and the financial bid found to be the lowest evaluated bid shall be accepted. Alternate bids will not be allowed. Alternate technical modules, methodologies, approach, project plan or timelines that deviate from the defined scope will be considered a s alternate bid and will be considered a s non responsive. Preliminary Evaluation: The technical proposals will be reviewed for deviations, acceptance of terms and conditions, adherence to scope of work, formats required, purchase of bid document etc., In case of non compliance on any of the above, bids will be considered as technically non-responsive. 21

26 Technical Evaluation: The Approach & Methodology, the project experience CV credentials of the team etc., would be evaluated and scores would be given (out of 100). The firm must score 70 marks to become technically responsive. The technical evaluation for the role of ERP Consultant by the Utility should be in line with the Section-III: Qualifying Requirements. The number of dedicated and shared resources that would be deployed by the vendor would be evaluated. Dedicated resources will be given preference over shared resources and will be awarded higher marks during the technical evaluation. In Project Experience, weightage would be given for experience in the following modules: Financial Accounting, Supply Chain Management, HRM, Payroll, Billing, Metering, Energy Auditing/Accounting, Customer Care, Network, Hardware. Successful completion of projects and proof in terms of performance certificates by the client will be given suitable preference/weightage. Price Bid Evaluation: Financial Proposals of only such firms will be opened whose offers have been declared Technically Responsive. The Financial Proposals of Technically Responsive Bidders in separate sealed envelope will be opened after evaluation of the Technical Proposals. Financial Proposal of un-successful Bidders will be returned back unopened. Financial proposal should be un-conditional, failing which the bid shall be summarily rejected. Contract shall be awarded only to the bidder with lowest financial proposal and technically responsive. 22

27 Detailed Technical Evaluation Methodology: Technical Evaluation would be conducted on far parameters as shown in the table below: Evaluation Parameters Approach & Methodology PARMETER DETAILS a. Understanding of the utility and its requirements (Also provide prior interaction with utility, if any) b. Details of methodology c. Project management office structure d. Resource planning and estimation {1 Mark Each} e. Risk Management Time Lines Detailed Work-plan to be provided. (No deviation -5 marks) TOTAL (Marks) 10 Age of Company IT-Projects (Other than ERP & Billing) 10 Years or more = 5 marks 05 Years to 10 Years = 3 marks 03 Years to 05 Years = 2 marks Web-site Call Centre/Data Centre etc Any Other reasonable IT project = 5 marks = 3 marks Finance, HR, Inventory & Billing = 15 marks IT-Project Finance, HR, Inventory = 5 marks (ERP & Billing) Finance =2 marks, HR =2 marks, Inventory = 2 marks Billing = 10 marks IT = 10 marks Core Business Finance /Audit & IT = 5 marks Non IT = 3 marks Experience with Utility Sectors DISCO (In Pakistan) SSGC/SNGPL /Electricity Abroad PTCL/WASA = 25 marks = 20 marks = 10 marks Financials Key HR- Resources (Experience Detail) Annual turn more than Rs. 100/- Mill =10 marks Annual turn Rs. 50/- Mill to 100/- Mill = 5 marks For each of 5 individuals the marks will be given as follows 4 marks for experience >= 10 years 3 marks for experience >= 07 years & < 10 years 2 marks for experience >= 05 years & < 07 years 1 mark for experience >= 02 years & < 05 years If bidder does not supply information on any of these factors a score of zero will be assumed. The score assigned by IESCO will be final. 23

28 Approach and Methodology: This s h a l l evaluate the Bidder on various parameters like details of understanding of the Utility and its requirements, methodology, resource planning and estimation, project management office structure, project related risk management plan and adherence to timelines and tenability of reasons for deviation. Points s h a l l be allotted a s shown in the table above. Project Experience: The bidder is required to submit details of projects with relevant work involved with certification on client s letterhead as proof of the scope of work, value and completion. The documentary proof of all projects needs to be furnished. The summary may be submitted for projects done for a utility (Power /Gas /Water) company in providing ERP consulting (Strategy, Advisory, Efficiency Improvements, ERP Implementation, Program Management) Engagements, in the last three financial years or should have provided procurement assistance or implementation or program management engagement for software /network /hardware solutions in the last three audited financial years for a utility company. For these projects, the bidder should specify the modules implemented and performance certificate related to his assignments under this evaluation. Points shall be allotted for these as shown in the table above. The bidder should also specify the total worth of power sector projects executed in the last three years. Points shall be allocated as shown in the table above. 24

29 Resumes (CVs) A minimum of 5 CVs {1 each from the categories: a) ERP Project Governance /Advisory b) Bid Management c) Business Analyst d) Quality assurance - Specialist e) Customer Care and billing specialist With qualification as specified in Section-III Eligibility Criteria must be supplied. Upto a maximum of 05 additional CVs may be supplied for resources, which meet the QR as in section III. Any replacement of the existing resource during the life of the consultancy can be done only by a person of similar /higher experience and qualification and in agreement with the utility. For each proposed resource, the responsibility areas and proposed period on the engagement shall be provided by the bidder, In case this information is not provided for any resource, the resume of that person shall not be considered for evaluation. The names and details of the resources submitted by the successful bidder shall be published on the IESCO website and bidder shall provide the scheduling of the personnel, CVs of whom have been used in the proposal. The resource scheduling should be suitably linked with activity chart proposed by bidder. If the personnel whose CV has been used is not available at the time of award of contract, same can be suitably replaced with a person of similar /higher experience and qualification and in agreement with the utility. 25

30 SECTION-VI: GENERAL CONDITIONS OF CONTRACT (GCC) 1. Contract Documents 2. Corrupt Practices 3. Interpretation 1.1 Subject to the order of precedence set forth in the Agreement, all documents forming the Contract (and all parts thereof) are intended to be corrective, complementary, and mutually explanatory 2.1 The Purchaser requires bidders, Consultants, and contractors to observe the highest standard of ethics during the execution of such contracts. (a) The following definitions apply: Corrupt practice means the offering, giving receiving, or soliciting, directly or indirectly, of any thing of value to influence the action of any party in the procurement process or the execution of a contract. Collusive practice means a scheme or arrangement between two or more bidders, designed to influence the action of any party in a procurement process or the execution of a contract; coercive practices means harming or threatening to harm, directly or indirectly, persons, or their property to influence their participation in a procurement process, or affect the execution of a contract; (b) The Purchaser will reject a proposal for award if determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practice in competing for the Contract. 3.1 In this Contract unless a contrary intention is evident: (a) The clause headings are for convenient reference only and do not form part of this contract. The headings shall not limit, alter or affect the meaning of this Contract; (b) Unless otherwise specified a reference to a clause number is a reference to all of its sub-clauses; (c) Unless otherwise specified a reference to a clause, sub-clause or section is a reference to a clause, sub-clause or section of this Contract including any amendments or modifications to the same from time to time; (d) A word in the singular includes the plural and a word in the plural includes the singular; 26