Subject: Engagement of Consultant for Consultancy Services on Long Term Strategy for Life Insurance Business of Department of Posts

Transcription

1 Government of India Ministry of Communications & I.T. Department of Posts Postal Life Insurance Directorate Chanakya Puri P.O.Complex, Chanakya Puri, New Delhi No.29 23/2010 LI Dated:14 th Dec,2011 Subject: Engagement of Consultant for Consultancy Services on Long Term Strategy for Life Insurance Business of Department of Posts Reference RFP Notice on the above subject sent to selected Firms vide letter No 29 23/2010 LI dated and e.mail received from Business Manager IBM dated The revised schedule of tender process as under : Schedule of Tender: Particulars Original Schedule Revised schedule Issue of clarifications Last Date and Time of submission of at 1500 hrs at 1500 hrs Tender Date and Time of opening of Tender at 1515 hrs at 1515 hrs. Sd- (Jagananath Srinivasan) Addl.General Manager

2 RFP for Long Term Strategy for Life Insurance Business of Department of Posts DEPARTMENT OF POSTS MINISTRY OF COMMUNICATIONS & IT GOVERNMENT OF INDIA DISCLAIMER RFP for Long Term Strategy for Postal Life Insurance Business of DoP

3 The information contained in this Request for Proposal (RFP) document or subsequently provided to Applicants, whether verbally or in documentary or any other form by or on behalf of Department of Posts, India, is provided to Applicants on the terms and conditions set out in this RFP and such other terms and conditions subject to which such information is provided. This RFP is not an agreement and is neither an offer nor invitation by India Post to the prospective Applicants or any other person. The purpose of this RFP is to provide interested parties with information that may be useful to them in the formulation of their Proposals pursuant to this RFP. Information provided in this RFP 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. The Authority accepts no responsibility for the accuracy or otherwise for any interpretation or opinion on the law expressed herein. Department of Posts also accepts no liability of any nature whether resulting from negligence or otherwise however caused arising from reliance of any applicant upon the statements contained in this RFP. Department of Posts 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 RFP. The issue of this RFP does not imply that India Post is bound to select an Applicant or to appoint the Selected Applicant, as the case may be, for the Consultancy and India Post reserves the right to reject all or any of the Proposals without assigning any reasons whatsoever. The Applicant shall bear all its costs associated with or relating to the preparation and submission of its Proposal including but not limited to preparation, copying, postage, delivery fees, expenses associated with any demonstrations or presentations which may be required by India Post or any other costs incurred in connection with or relating to its Proposal. All such costs and expenses will remain with the Applicant and India Post shall not be liable in any manner whatsoever for the same or for any other costs or other expenses incurred by an Applicant in preparation or submission of the Proposal, regardless of the conduct or outcome of the Selection Process. TABLE OF CONTENTS RFP for Long Term Strategy for Life Insurance Business of Department of Posts 2 of 74

4 S.No. Particulars Page No. 1. Disclaimer 2 2. Section 1: Letter of Invitation 4 3. Section 2: Introduction Section 3: Instructions to Consultants Part I Instructions to Consultants Part-II (Data Sheet) Section 4 : Terms of Reference Section 5: Technical Proposal Forms Section 6: Financial Proposal Forms Section 7: Forms of Contract LETTER OF INVITATION No.29 23/2010 LI Government of India Ministry of Communications & I.T. Department of Posts Postal Life Insurance Directorate Chanakya Puri P.O.Complex, Chanakya Puri, New Delhi Dated:11 th Nov,2011 Subject: Engagement of Consultant for Consultancy Services on Long Term Strategy for Life Insurance Business of Department of Posts Dear The Postal Life Insurance Directorate (PLI) of Department of Posts had invited an Expression of Interest (EOI) dated to seek responses to provide Consultancy services for Long Term Strategy for Life Insurance Business of Department of Posts. More details on the consultancy services are provided under Terms of Reference in this RFP document. Your company has been short listed for the issue of RFP for the project, and is now invited to submit its proposal as per the attached RFP document. 3. Department of Posts, India shall select a Consultant as per procedures described in the RFP. 4. Schedule of Tender: RFP for Long Term Strategy for Life Insurance Business of Department of Posts 3 of 74

5 Date of issue of RFP No Date of submission of queries/ sought clarification Date of Pre Bid Conference on queries/ clarifications Issue of clarifications Last Date and Time of submission of at 1500 hrs Tender Amount of Earnest Money Deposit Rs.10,00,000/ (As per clause 13.1 of Part I) Date and Time of opening of Tender at 1515 hrs. Venue Conference Room, PLI Directorate, Chanakyapuri PO Complex, Chanakya Puri, New Delhi Please inform us in writing to Addl G.M.(V), Postal Life Insurance Directorate, Chanakya Puri P.O. Complex, Chanakya Puri, New Delhi , upon receipt that you have received the Letter of Invitation and RFP document. Yours sincerely, ( M.Venkateswarlu ) Addl. General Manager(V) Section 2 Introduction RFP for Long Term Strategy for Life Insurance Business of Department of Posts 4 of 74

6 INTRODUCTION 1 Introduction 1.1 Postal Life Insurance Business India Post India Post started Insurance operations in the year 1884 as a welfare measure for the employees of the Posts and Telegraphs Department, but soon extended its benefits to various departments of the Central and State Governments. Now benefits of Postal Life Insurance are open to employees of all Central and State Government Departments, Nationalized Banks, Public Sector Undertakings, Financial Institutions, Local Bodies like Municipalities and Zila Parisads, Educational Institutions aided by the Government etc. In 1995, Life Insurance business was extended to rural areas under Rural Postal Life Insurance (RPLI) to provide insurance cover to people living in rural areas with special emphasis on women and weaker sections of society. As of now, there are about 5 million policies under PLI with a Sum Assured of Rs.58,132 Crore. The average growth rate of PLI in terms of premium income is about 32%. Further, under RPLI, there are about 15 million policies with a Sum Assured of Rs.67,162 Crore. The growth rate of RPLI was 60% in terms of premium income in over The Department is committed to expanding insurance cover to reach a target of about 100 million customers in a few years time. Post liberalization and opening up of the insurance sector to private insurers, several new business models of insurance have been launched which coupled with a regulatory and competitive environment are posing fundamental threat to the existing business models and requiring industry participants to make some significant shifts. Given the recent regulatory changes, government policies and the need for greater participation in the evolving but still growing life insurance market, Department of Posts wants a thorough diagnostic re look at its RFP for Long Term Strategy for Life Insurance Business of Department of Posts 5 of 74

7 entire operating strategy including a structural framework in the Insurance Division and to develop a road map for the future. 1.1 Vision Life Insurance Business of India Post India Post aims to reach a target of 100 million customers from the present 20 million (PLI + RPLI). It intends to turn the insurance business into the key revenue driver and also create an efficient operating model to cater and extend insurance services to the rural masses especially women and weaker sections of the society. This all translates into the following primary initiatives related to the Life Insurance business of India Post: Increase market share and revenues Offer new products and expand client base Suitable organization set up and inter relations for better control and decision making Efficient and effective sales network for delivery of services up to remote areas Improved and consistent customer service, including after sales service Revamped organizational structure and increased asset utilization Suggesting suitable model and structure for Investment Operations Suggest the suitable technological solution for the above operations 1.3 Request For Proposal (RFP): As envisaged in the vision of Department of Posts, it was proposed to engage a consultant to help the Department to achieve the desired objectives related to Postal Life Insurance business through an independent assessment of the current status of activities, practices and procedures being followed, regulatory and competitive environment etc. For this purpose an EOI was floated by the Department of Posts on 14 th January 2011 for submission of Expression of Interest by interested consulting companies/ firms. Those found eligible through the process of EOI were shortlisted and now invited through present Request For Proposal (RFP) to submit their proposals (Technical & Financial) for the desired Consultancy services, as prescribed in the RFP document. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 6 of 74

8 Section 3 Instructions to Consultants RFP for Long Term Strategy for Life Insurance Business of Department of Posts 7 of 74

9 INSTRUCTIONS TO CONSULTANTS 1. Definitions Part I (a) Employer or DoP or India Post means the Department of Posts, Ministry of Communications & I.T., Government of India who have invited the bids for consultancy services for this project and with whom the selected Consultant signs the contract for the Services and to whom the selected consultant shall provide services as per the terms and conditions and Terms of Reference of the contract. (b) Consultant means any firm who has been short listed to submit their proposals that may provide the services to the Employer under the Contract. (c) Contract means the Contract signed by the Parties for this project. (d) Project specific information means such parts of the instructions to Consultants used to reflect specific project and assignment conditions. (e) Terms of Reference (TOR) means the document included in the RFP as Section 5 which explains the objectives, scope of work, activities, tasks to be performed, responsibilities of the Employer and the Consultant, and expected deliverables of the assignment / job. (f) Government means the Government of India. (g) Instructions to Consultants means the document which provides short listed consultants with all information needed to prepare their proposals. (h) LOI means the Letter of Invitation being sent by the Employer to the shortlisted consultants. (i) (j) PLI means Schemes of Postal Life Insurance & Rural Postal Life Insurance also. Proposal means the Technical Proposal and the Financial Proposal. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 8 of 74

10 (k) RFP means the Request for Proposal prepared by the Employer for the selection of Consultants. (l) Assignment / job means the work to be performed by the Consultant pursuant to the Contract. (m) Consultancy Evaluation Committee means the Committee constituted by the employer to evaluate the technical proposals for selection of the consultant. (n) CMC means Consultancy Monitoring Committee formulated to monitor the assignment. 2. Introduction 2.1 Department of Posts, India, invites application from the Consultants, short listed through the process of Expression of Interest (EOI), for providing consultancy services for Long Term Strategy for Life Insurance Business of Department of Posts. 2.2 The name of the assignment/ job has been mentioned in Part II Data Sheet. Detailed scope of the assignment/ job has been described under the Terms of Reference in Section The date, time and address for submission of the proposal have been given in Part II Data Sheet. 2.4 The short listed Consultants are invited to submit their Proposal, for consultancy assignment/ job named in the Part II Data Sheet. The Proposal will be the basis for contract negotiations and ultimately for a signed Contract with the selected Consultant. 2.5 Consultants should familiarize themselves with local conditions and take them into account in preparing their Proposals. To obtain first hand information on the assignment/ job, consultants are encouraged to meet the representative of the Employer The Employer shall provide at no cost to the Consultants the inputs and facilities specified in the Part II of Data Sheet, and make available information/ data relevant to the assignment. 2.7 Consultants shall bear all costs associated with the preparation and submission of their proposals and contract negotiation. The Employer is not bound to accept any proposal and reserves the right to annul the selection process at any time prior to award of the Contract without thereby incurring any liability towards the Consultants. 3. Eligibility Conditions: Only Companies/ firms shortlisted through evaluation process of Expression of Interest (EOI) received in response to DoP s invitation notice dated are eligible to submit their Technical and Financial proposal, as specified in the RFP document. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 9 of 74

11 4. Signing of the RFP Document: The person signing the proposals and other related documents as authorized signatory should have such authorization from the appropriate authority and followed by due procedure such as passing of resolution of the Company s board; execution of Power of Attorney by an Authority competent to do so. The authorized signatory should initial each page of the proposal document as a token of acceptance of terms and conditions of the RFP and should provide full signature under company s seal wherever required specifically. 5. Clarification and Amendment of RFP Document 5.1 Consultants may request a clarification on any clause of the RFP document within the timeframe indicated in the Part II Data Sheet. Any request for clarification must be sent in writing or e mail to the Employer s address indicated in the Part II Data Sheet. A pre bid conference shall be arranged in this regard. Consultants or their representatives may attend the pre bid meeting conference at their own expense. However, attending the pre bid meeting is optional. The Employer will respond in writing or by e mail and post all such clarifications on the website of the Department of Posts. 5.2 At any time before the submission of proposals, the Employer may amend the RFP by issuing an addendum in writing or by announcing it through its website. The addendum shall be binding on all Consultants. Consultants shall acknowledge receipt of all such amendments. To give the Consultants reasonable time in which to take an amendment into account in their proposals, the Employer may, if the amendment is substantial, extend the deadline for submission of the proposal. 6. Conflict of Interest 6.1 The Employer requires that Consultants provide professional, objective, and impartial advice and at all times hold the Employer s interests paramount, strictly avoid conflicts with other assignment/ jobs or their own corporate interest and act without any consideration for future work. 6.2 Without limitation on the generality of the foregoing, Consultants, and any of their affiliates, shall be considered to have a conflict of interest and shall not be recruited, under any of the circumstances set forth below: Conflicting Activities: A firm or any of its affiliates, selected to provide consulting assignment/ job for this project, shall be disqualified from subsequent downstream supply of goods or works or services resulting from or directly related to this project. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 10 of 74

12 Conflicting Assignment/ job: A Consultant (including its affiliates) shall not be hired for any assignment/ job that, by its nature, may be in conflict with another assignment/ job of the Consultant to be executed for the same or for another Employer. Conflicting Relationships: A Consultant that has a business or family relationship with a member of the Employer s staff who is directly or indirectly involved in any part of the project shall not be awarded the Contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to the Employer throughout the selection process and the execution of the Contract. 6.3 Consultants have an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of their Employer, or that may reasonably be perceived as having this effect. Any such disclosure shall be made as per the forms of technical proposal provided herewith. If the consultant fails to disclose said situations and if the Employer comes to know about any such situation at any time, it may lead to the disqualification of the Consultant during bidding process or the termination of its contract during execution of the assignment. 7. Unfair Advantage 7.1 If a short listed Consultant could derive a competitive advantage from having provided consultancy assignment/ job related to the assignment/ job in question and which is not defined as conflict of interest as per para 6 above, the Employer shall make available to all short listed Consultants together with this RFP all information that would in that respect give such Consultant any competitive advantage over competing Consultants. 8. Proposal 6.1 Short listed Consultants shall submit only one proposal for this project. If a Consultant submits or participates in more than one proposal, such proposals shall be disqualified. 9. Proposal Validity 9.1 Part II Data Sheet indicates how long Consultants proposals must remain valid after the submission date. During this period, Consultants shall maintain the availability of professional staff nominated in the proposal and also the financial proposal unchanged. The Employer will make its best effort to complete negotiations within this period. Should the need arise, however, the Employer may request Consultants to extend the validity period of their proposals. Consultants who agree to such extension shall confirm that they maintain the availability of the Professional staff nominated in the Proposal and their financial proposal remain unchanged, or in their confirmation of extension of validity of the Proposal, Consultants could submit new staff in replacement, which would be considered in the final evaluation for award of the contract. Consultants who do not agree, have the right to refuse to extend the validity RFP for Long Term Strategy for Life Insurance Business of Department of Posts 11 of 74

13 of their Proposals. Under such circumstance, the Employer shall not consider such proposal for further evaluation. 10. Preparation of Proposal 10.1 The Proposal as well as all related correspondence exchanged by the Consultants and the Employer shall be written in English language, unless specified otherwise In preparing their Proposal, Consultants are expected to examine in detail the documents comprising the RFP. Material deficiencies in providing the information requested may result in rejection of a Proposal While preparing the Technical Proposal, Consultants must give particular attention to the following: (a) The estimated number of Professional staff months for the Assignment/ job is as shown in the Part II Data Sheet. However, the Proposal shall be based on the number of Professional staff months or budget estimated by the Consultants. While making the proposal, the consultant must ensure that he proposes the minimum number and type of experts as sought by the Employer, failing which the proposal shall be considered as non responsive. (b) Alternative professional staff shall not be proposed and only one curriculum vitae (CV) may be submitted for each position mentioned Depending on the nature of the assignment/ job, Consultants are required to submit a Technical Proposal (TP) in forms provided in Section 5. Part II Data Sheet in Section 3 indicates the format of the Technical Proposal to be submitted. Submission of the wrong type of Technical Proposal will result in the Proposal being deemed nonresponsive. The Technical Proposal shall provide the information indicated in the following para from (a) to (g) using the attached Forms (Section 5). Form TECH 1 in Section 5 is a sample letter of technical proposal which is to be submitted along with the technical proposal. (a) A brief description of the consultant s organization and in the case of a consortium / joint venture, of each partner, will be provided in Form TECH 2 (Section 5). In the same form, the Consultant and in the case of a consortium / joint venture, each partner will provide details of experience of assignments which are similar to the proposal assignment / job as per the TOR. For each assignment/ job, the outline should indicate the names of Professional staff who participated, nature and duration of the assignment/ job, contract amount, and consultant s involvement. Information should be provided only for those assignment/ jobs for which the Consultant was legally contracted by an employer as a corporation or as one of the major firms within a joint venture. Assignment/ jobs completed by individual professional staff working privately or through other consulting firm cannot be claimed as the experience of the Consultant, or that of the Consultant s associates, but can be claimed by the Professional staff themselves in their CVs. Consultants should substantiate RFP for Long Term Strategy for Life Insurance Business of Department of Posts 12 of 74

14 the claimed experience along with the proposal and must submit letter of award / copy of contract for all the assignments mentioned in the proposal. (b) Comments and suggestions on the Terms of Reference including workable suggestions that could improve the quality / effectiveness of the assignment/ job. (Form TECH 3 of Section 5). (c) A description of the approach, methodology and work plan for performing the assignment/ job covering the following: technical approach and methodology, work plan, project organization and availability of experts, and transfer of knowledge/ training. Guidance on the content of this section of the Technical Proposals is provided under Form TECH 4 of Section 5. The work plan should be consistent with the Work Schedule (Form TECH 8 of Section 5) which will be shown in the form of a Gantt chart with the timing proposed for each activity. (d) The list of the proposed Professional staff team by area of expertise, the position that would be assigned to each staff team member and their tasks to be provided in Form TECH 5 of Section 5. (e) CVs of the Professional staff as mentioned in para 10.4 (d) above signed by the staff themselves or by the authorized representative of the Professional Staff (Form TECH 6 of Section 5). (f) Estimates of the staff input needed to carry out the assignment/job and work schedule should be given in Form TECH 7 and TECH 8 respectively of Section 5. Information relating to conflict of interest should be furnished in Form TECH 9 of Section 5. (g) A detailed description of the proposed methodology for transfer of knowledge/ training to the India Post staff should be given in Form TECH 10 of Section The Technical Proposal shall not include any financial information. A Technical Proposal containing financial information may be declared non responsive Financial Proposals: The Financial Proposal shall be prepared using the prescribed Forms (Section 6). It shall list all costs associated with the assignment/job, including (a) remuneration for staff and (b) reimbursable expenses, indicated in the Part II Data Sheet. If appropriate, these costs should be broken down by activity. The financial proposal shall not include any conditions attached to it and any such conditional financial proposal shall be rejected summarily. 11. Taxes The Consultant shall fully familiarize themselves about the applicable domestic duties and taxes on amounts payable by the Employer under the Contract. All such duties and taxes must be included by the consultant in the financial proposal. 12. Currency 12.1 Consultants shall express the price of their Assignment/ job in Indian Rupees (INR) only. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 13 of 74

15 13. Earnest Money Deposit (EMD), Bid processing Fee and Performance Guarantee 13.1 Earnest Money Deposit (a) An EMD of Rs.10,00,000/ (Rs. Ten lakh only), in the form of a Demand Draft drawn in favour of Director General, Department of Posts, Government of India and payable at New Delhi must be submitted along with the Proposal. (b) (c) Proposals not accompanied by EMD shall be rejected as non responsive. No interest shall be payable by the Employer for the sum deposited as EMD. (d) The EMD of the unsuccessful bidders would be returned back within one month of signing of the contract with the successful bidder. (e) No bank guarantee will be accepted in lieu of the EMD Forfeiture of EMD The EMD shall be forfeited by the Employer in the following events: (a) If the proposal is withdrawn during the validity period or any extension agreed by the Consultant thereof. (b) If the proposal is varied or modified in a manner not acceptable to the Employer after opening of proposal during the validity period or any extension thereof. (c) If the consultant tries to influence the evaluation process Bid Processing Fee All bidders are required to pay Rs.5,000/ (Rs. Five Thousand only) towards Bid Processing Fee. This fee may be deposited in cash at any post office in India under the head unclassified receipt (UCR). The receipt (in original) should be submitted along with the technical proposal. The Bid Processing Fee is Non Refundable. The Proposal, which does not include the bid processing fee, would be rejected as non responsive Performance Guarantee The selected consultant shall be required to furnish a Performance Bank Guarantee (format as prescribed at Appendix G under Section 7) equivalent to 10% of the contract value rounded off to the nearest thousand Indian Rupees in the form of an unconditional and irrevocable bank guarantee from a scheduled commercial bank in India in favour of Director General, Department of Posts, Government of India for the period of contract with 90 days claim period. The bank guarantee must be submitted after award of contract but before signing of consultancy contract. The successful bidder has to renew the bank guarantee on same terms and conditions for the period RFP for Long Term Strategy for Life Insurance Business of Department of Posts 14 of 74

16 up to contract including extension period, if any. Performance Guarantee would be returned only after successful completion of tasks assigned to them and only after adjusting/ recovering any dues recoverable/ payable from/ by the Consultant on any account under the contract. On submission of performance guarantee and after signing of the contract, EMD would be returned. 14. Submission, Receipt and Opening of Proposal 14.1 The original proposal, both Technical and Financial Proposal shall contain no interlineations or overwriting. Submission letters for both Technical and Financial Proposals should be in the format of TECH 1 of Section 5, and FIN 1 of Section 6 respectively An authorized representative of the Consultants shall initial all pages of the original Technical and Financial Proposals. The signed Technical and Financial Proposals shall be marked ORIGINAL The original and three copies of the Technical Proposal shall be placed in a sealed envelope clearly marked TECHNICAL PROPOSAL. Similarly, the original Financial Proposal shall be placed in a sealed envelope clearly marked FINANCIAL PROPOSAL followed by the name of the project. EMD and Bid Processing Fee shall be placed in a sealed envelope clearly marked EMD and Bid Processing Fee. The three envelopes containing (a) EMD & Bid Processing Fee (b) Technical proposal and (c) Financial Proposal respectively shall be placed into an outer envelope and sealed. This outer envelope shall bear the submission address, and reference number clearly marked DO NOT OPEN BEFORE {time and date of the opening indicated in the Data sheet}. The Employer shall not be responsible for misplacement, losing or premature opening if the outer envelope is not sealed and/or marked as stipulated. This may lead to rejection of the Proposal. If the Financial Proposal is not submitted in a sealed envelope duly marked as indicated above, this will constitute grounds for declaring the Proposal non responsive The Proposals must be submitted in person to the addressee indicated in the Data sheet and received by the Employer not later than the time and the date indicated in the Data Sheet, or any extension to this date in accordance with para 2.3 above. Any proposal received by the Employer after the deadline for submission shall be returned unopened Envelope containing EMD and Bid Processing Fee shall be opened first, in the presence of bidders authorized representatives who chooses to attend, at the date and time mentioned in Part II Data Sheet. The bids not accompanied by the EMD and Bid Processing Fee shall be summarily rejected without any further evaluation. Technical Proposals of only those bidders, who have submitted the EMD and Bid Processing Fee as per the specified requirement will be opened on the date and time indicated in Part II Data Sheet in the presence of the representatives of the Consultants who wish to attend. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 15 of 74

17 15. Proposal Evaluation 15.1 From the time the Proposals are opened to the time the contract is awarded, the Consultants should not contact the Employer on any matter related to its Technical and/or Financial Proposal. Any effort by Consultants to influence the Employer in the examination, evaluation, ranking of Proposals, and recommendation for award of contract may result in the rejection of the Consultants Proposal The Employer has constituted a Consultancy Evaluation Committee (CEC) for selection of the Consultant which will carry out the evaluation process Evaluation of Technical Proposals: The CEC shall evaluate the Technical Proposals on the basis of their responsiveness to the Terms of Reference and by applying the evaluation criteria and sub criteria specified in Clause 14 of Part II of Section 3 Instructions to Consultants. In the first stage of evaluation, a Proposal shall be rejected if it is found deficient as per the requirement indicated for responsiveness of the proposal. Only responsive proposals shall be further taken up for evaluation. Evaluation of the technical proposal will start first and at this stage the financial bid (proposal) will remain unopened. The qualification of the consultant and the evaluation criteria for the technical proposal shall be as defined below Criteria for Evaluation of Technical Proposal: The criteria defined in Clause 14 of Part II Instructions to Consultants would be followed for evaluation of technical proposals. Only applicants obtaining a total score of 70 (on a maximum of 100) or more on the basis of criteria for evaluation given below would be declared technically qualified. Besides, the consultants must score at least 60% marks in each sub criteria of the criteria for evaluation Financial proposals of only those firms which are declared technically qualified shall be opened publicly, on the date & time specified in the Data sheet, in the presence of the Consultants representatives who choose to attend. The name of the Consultants, their technical score (if required), and their Financial Proposal shall be read aloud Method of Selection: In deciding the final selection of the consultant, the technical quality of the proposal will be given a weightage of 70% on the basis of criteria for evaluation. The price bids of only those consultants who qualify technically will be opened. The proposal with the lowest cost will be given a financial score of 100 and the other proposal given financial scores that are inversely proportional to their prices. The financial proposal shall be allocated a weightage of 30%. For working out the combined score, the employer will use the following formula: Total points = {0.7 x T(s)} + {0.3x100xLEC/EC}, where T(s) stands for technical score, EC stands for Evaluated Cost of the Financial Proposal, LEC stands for Lowest Evaluated Cost of the Financial Proposal. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 16 of 74

18 The proposals will be ranked in terms of total points scored. The proposal with the highest total points (H 1) will be considered for award of contract and will be called for negotiations, if required. Example: If in response to this RFP, three proposals, A, B & C were received and the Consultancy Evaluation Committee awarded them 75, 80 & 90 marks respectively, all the three proposals would be technically suitable. Further, if the quoted price of proposals A, B & C were Rs.120, 100 & 110 respectively, then the following points for financial proposals may be given: A: 100 / 120 = 83 points B: 100 / 100 = 100 points C: 100 / 110 = 91 points In the combined evaluation, the scores would be as follows: Proposal A: 75 x x 0.3 = 77.4 Proposal B: 80 x x 0.3 = 86 Proposal C: 90 x x 0.3 = 90.3 Proposal C would be considered the H1 and would be recommended for negotiations, if considered necessary and approval The CEC will correct any computational errors. When correcting computational errors, in case of discrepancy between a partial amount and the total amount, or between words and figures, the former will prevail. In addition to the above corrections, the items described in the Technical Proposal but not priced, shall be assumed to be included in the prices of other activities or items. In case an activity or line item is quantified in the Financial Proposal differently from the Technical Proposal, no corrections will be allowed to the Financial Proposal After opening of financial proposals the consultant will be declared eligible for award of the contract. This selected consultant will then be invited for negotiations, if considered necessary. 16. Negotiations 16.1 Financial negotiations: Negotiations, if considered necessary, shall be held only with the Consultant who shall be placed as H 1 bidder after combined evaluation of the Technical and Financial proposal, as indicated in para 15.6 above. Under no circumstance, the financial negotiation shall result into an increase in the price originally quoted by the consultant. Date and time for negotiation shall be communicated to the H 1 consultant. Representatives conducting negotiations on behalf of the Consultant must have the written authority to negotiate and conclude the Contract. RFP for Long Term Strategy for Life Insurance Business of Department of Posts 17 of 74

19 17. Award of Contract 17.1 After completing negotiations, the Employer shall issue a Letter of Intent to the selected Consultant and promptly notify all other Consultants who have submitted proposals about the decision taken The consultant will sign the contract after fulfilling all the formalities/preconditions mentioned in the form of contract in Section 7, within 15 days of issuance of the letter of intent The Consultant is expected to commence the assignment/ job on the date specified in the Part II Data Sheet. 18. Confidentiality Information relating to evaluation of proposals and recommendations concerning awards shall not be disclosed to the Consultants who submitted the proposals or to other persons not officially concerned with the process, until the publication of the award of Contract. The undue use by any Consultant of any information related to the process may result in the rejection of its Proposal and may be subject to the provisions of the Employer s anti fraud and corruption policy. 19. Payment Terms The terms of payment would be linked to the deliverables of the project, and are specified in the contract form (Section 7). RFP for Long Term Strategy for Life Insurance Business of Department of Posts 18 of 74

20 INSTRUCTIONS TO CONSULTANTS Part II DATA SHEET (PROJECT SPECIFIC INFORMATION) Clause No Ref. of ITC Particulars of Data Sheet Name of the Employer: Department of Posts, Government of India throug Chief General Manager, PLI Directorate, New Delhi Name of the Assignment/job: Long Term Strategy for Life Insurance Bus of Department of Posts A pre bid meeting will be held on Date: Time: Venue: 1100 Hours Conference Hall, PLI Directorate, Chanakyapuri Post Office Complex, New Delhi Last Date & Time and Address for submission of Proposal Envelope containing EMD and Bid Processing Fee will be opene at 1515 hrs. Technical Proposals will be opened on hours at Conference Hall, PLI Directorate, Chanakyapuri Post O M.Venkateswarlu, Addl General Manager, PLI Directorate,, Chanakya Pur Date: Time: 1500 hours Address: Asstt. Manager, PLI Directorate, Chanakya Puri P.O.Complex, Chanakya New Delhi (INDIA) Complex, New Delhi The Employer s Representative: Addl General Manager, PLI Directorate Address: Addl General Manager, PLI Directorate,, Chanakya Puri P.O.Com Chanakya Puri, New Delhi (INDIA) Telephone Fax: E mail: agmplidte@gmail.com Proposals must remain valid for 180 days after the last date of submission i.e., Clarifications may be requested within 7 days of issue of the RFP, i.e., The address for requesting clarifications is: P.O.Complex, Chanakya Puri, New Delhi (INDIA) Fax: E mail: agmhplidte@gmail.com The formats of the Technical Proposal to be submitted are: Form Tech 1: Letter of Proposal submission Form Tech 2 : Consultant s organization & experience Form Tech 3: Comments & suggestions on TOR RFP for Long Term Strategy for Life Insurance Business of Department of Posts 19 of 74

21 Form Tech 4: Approach, Methodology and Work Plan Form Tech 5: Team Composition Form Tech 6: Curriculum Vitae Form Tech 7: Staffing Schedule Form Tech 8: Work Schedule Form Tech 9: Information regarding any conflicting activities and declar thereof Consultant should state the cost in Indian Rupees (in a non writable CD) of the Technical Proposal, and the original o Consultant must submit the original, 3 (Three) hard copies and one soft Financial Proposal The estimated number of professional staff months required for Assignment/ job is : staff months to be estimated by the Bidder The Consultant should also indicate the number and details of the Su information/ documents/ co ordination with other Divisions/Offices whenever & wherever considered necessary for progress of the Project employer will interact with the Consultant for exchange of docum Staff members associated with Key Team members in their work plan The Employer would provide consultants the necessary support in term information and discussion Evaluation Criteria Criteria, sub criteria and point system for Evaluation to be followed unde procedure is as under : Criteria & Sub Criteria Po I Previous Experience (Projects handled) 2 a. Projects handled for Postal Administrations/ Organizations across the World during last 5 years 1 (i) one to two projects, or (ii) Three or more projects 1 b. Projects handled for Life Insurance Business/ services of Postal Administrations/ Organizations in India during last 5 years 1 (i) One to two projects (ii) Three or more projects 1 (c) Specific experience of Consultant in Programme Management Unit (PMU) in Government/ Large public sector in India Methodology 3 Understanding of the TOR, Adequacy of the proposed methodology and work plan in response to the Terms of RFP for Long Term Strategy for Life Insurance Business of Department of Posts 20 of 74

22 Reference Technical approach and methodology 1 Work Plan Organization and Staffing Resourcing Project Team 3 Project Manager/ Team Leader having minimum of experience of leading team in 3 projects out of which at least one is in Life Insurance Life Insurance Domain Experts (2 in numbers, One International 1 expert ( part time), one full time local expert) Investment/ Financial Domain Expert Minimum one project in Life Insurance Marketing/ Sales Expert Information Technology Expert Presentation by Consultant s Team 1 Understanding of the Assignment/ project Proposed Methodology Resource qualifications required for this project are provided in Section this document. as under: i) Educational qualifications (25%) ii) Adequacy for the assignment/job (75%) Method of selection: In deciding the selection of the Consultant, the tech quality of the proposal will be given a weightage of 70%. The meth above. The Consultants will be asked to give a presentation befor clarifications, if any, considered necessary by the committee. weightage of 30% Expected date for commencement of consulting assignment/ job February, Location for performance assignment/job : New Delhi and as decided b Employer Section 4 RFP for Long Term Strategy for Life Insurance Business of Department of Posts 21 of 74

23 Terms of Reference 1. Terms of Reference (TOR) 1.2 Scope of Work Department of Posts has approved a project for Long Term Strategy for Life Insurance Business of Department of Posts. In that regard, the consultant chosen shall focus on the following areas as part of the assignment: RFP for Long Term Strategy for Life Insurance Business of Department of Posts 22 of 74

24 I. Analysis of current Life Insurance environment, including regulatory requirements, available types and segments of products; customer profiling; market potential and unexploited/ less penetrated areas. Future outlook for growth and profitability, Scope for expansion of products and clientele and key success factors for an organization to succeed. II. In depth study of insurance operations and models of other Postal administrations around the World and suggesting the practices which can be adopted by Postal Life Insurance. III. Detailed profiling of existing Postal Life Insurance business to identify the core strengths and capabilities. Identifying the gaps in the organization, operations, maximizing the returns, control of expenditure etc. with special emphasis on analyzing whether existing business model is equipped to: a. Make Postal Life Insurance as the Leading market operator in Life Insurance Market b. Address the need for expansion of clientele and introduction of new products c. Effectively handle the mandate for providing insurance cover to people living in rural areas especially women and weaker sections of society. Suggesting methodology/ products/ services which may be adopted as Social security measures by Postal Life Insurance/ Government of India through Postal Life Insurance d. Effectively servicing of policies and revival mechanism of the lapsed policies through the existing postal network and workforce comprising PLI agents/ postal employees and Gramin Dak Sewaks e. Wealth Maximization through Investment Operations IV. Developing the long term strategy for the insurance business of the Department of Posts including but not restricted to: a. Overall strategy towards the life insurance business so as to make Postal Life Insurance as the key Life Insurance player in the Indian market. b. Study of the preferences/ requirements of the potential customers, suggesting appropriate Products to meet them and development of marketing strategy to achieve them c. Define the key customer segments and customer value propositions and measures to achieve the same d. Suggest the appropriate sales and distribution model to reach the target customer segments e. Operating model or available package for efficient Servicing of Policies e.g., under writing, policy issuance, policy and customer servicing f. Organizational structure and operational network which would be required so as to make PLI / RPLI more competitive in the market while leveraging on the trust which it presently enjoys. g. To suggest suitable Organizational set up required for achieving Operational and Functional Autonomy with respect to decision making desired at various level. It includes status of organization e.g. Government set up/ Corporation or Company/Authority considering the market and regulatory environment and to maintain competitive edge in market. h. Organization design including design of performance management systems and KPIs, incentive programs, MIS capabilities and tools and processes in line with the best practices in the insurance business RFP for Long Term Strategy for Life Insurance Business of Department of Posts 23 of 74

25 1.3 Methodology proposed to be adopted: i. Study of the existing environment of Life Insurance Sector, including but not limited to Life Insurance Market including players & competition, streams & products, customer orientation/ preferences, Regulatory requirements, Government policies, scope for new products; Current Organisation structure in DoP, Decision making & reporting structures; Marketing & Customer Management system, quality of service; Data Management & Customer profiling &; after sales service. Expenditure Management & Cost Control; Investment operations, Fund Flow Management, Accounting system and flow of MIS from the network of BO, sub PO, HO, Circle office, Postal Accounts Office (DAP), DPLI and Directorate, Structures & practices followed by other Postal Administrations world over and/ or similar organisations elsewhere. ii. iii. iv. Comparing and identifying the gaps as compared to best practices, operational structures and necessary arrangements with other organizations, customer data management and its usage, decision making process, options available for Investment operations and necessary structure, infrastructure required for it. Designing of formats etc. and system of flow of information for operational/ administration/ financial/ policy decision making based on the best suited model recommended by the consultant with the reflection of such decision on the system. Studying and recommending suitable data management architecture, requirements for its real time availability for support services and efficient decision making at various levels. Training at the User s level/ Administration level, including the issues related to change management; development of sense of ownership of data, importance for operational/ strategic decision making at different levels and implementation related issues 1.4 Expected Deliverables, Activities & Timelines The expected deliverables for the Long Term Strategy for Life Insurance Department of Posts Project are shown below: Business of Sl. No Deliverable Activities Timelines (Days) RFP for Long Term Strategy for Life Insurance Business of Department of Posts 24 of 74

26 Sl. No Deliverable Activities Timelines (Days) 1 Project Management Project Kickoff, Project management plan document T+20 Plan Document 2 AS IS assessment report AS IS analysis for including of the following but not T+60 limited to the existing environment in Life Insurance Market including players & competition, available products and customer orientation/ preferences, Regulatory requirements, Government policies and mandate to PLI, scope for new products; Current Organisation structure and arrangements with other organizations, Decision making & reporting structures; Marketing & Customer Management system, quality of service; Data Management & Customer profiling &; Customer follow up revival arrangements. Expenditure Management & Cost Control; Investment & Wealth Maximisation, Fund Flow Management, The study of linkage at various levels including BO, sub PO, HO, Circle office, Postal Accounts Office (DAP) and Directorate level. 3 Benchmarking Report The consultant is required to study global best practices, from a strategy, process, people, & technology perspective, create benchmarks, identify the gaps with respect to best practices adopted elsewhere. Compare with the AS IS status with T+90 respect to PLI and Indian Life Insurance environment; and prepare the report by comparing with best practices, organization structures, identify the gaps and their analysis with recommendations which add value to the initiatives envisaged under the assignment/ job with respect to the following and which are best suited for PLI Directorate/ DoP: Best practices in the area of Life Insurance in general & with specific relevance to Postal Administrations, including but not limited to Life Insurance, products, other services offered, quality of services, modes of delivery and speed of delivery of services/ products. 4 TO BE PLI strategy The consultant should provide understanding and T+150 documentation of the strategic and organizational, operational, financial processes documented in hierarchical structure. The processes should be prepared considering items in As Is part result into better monitoring, decision making, cost management & over all improvement in performance of the PLI/ DoP 5 IT architecture and The consultant is expected to carry out AS IS T+180 software development/ Analysis of present level of automation including implementation plan study of the existing applications, software architecture, data flow diagrams and logic definitions. The consultant shall study the various IT Solutions being used by DoP, requirements of the various levels and divisions of Department of Posts, identify process improvement and efficiency RFP for Long Term Strategy for Life Insurance Business of Department of Posts 25 of 74