Request for Proposal - Tender No: RFP/ FF/ 01/ 2013

Request for Proposal - Tender No: RFP/ FF/ 01/ 2013 SELECTION OF A FREIGHT FORWARDING SERVICE PROVIDER TO HANDLE SRILANKAN AIRLINES SERVICE FREIGHT CONSIGNMENTS TO AND FROM UNITED STATES OF AMERICA (USA) & CANADA SriLankan Airlines Limited, based in Colombo, Sri Lanka, invites offers from freight forwarders with a global presence to handle Freight Forwarding of its service freight consignments to and from USA & Canada for a period of 03 years. 1. ELIGIBILITY CRITERIA I. Should have global office representation/ coverage, preferably own offices, with warehousing and trucking facilities (Please include network coverage map) I Should have strong representation/ coverage within USA & Canada, preferably own offices, with ware-housing and trucking facilities (Please include network coverage map within USA & Canada) Clientele should preferable comprise at least ten (10) globally recognised brands (Please include details) Should be currently handling global airline freight forwarding contracts (Please include details) V. Should possess on-line tracking and tracing facility. VI. V Should be a member of CASS (Please furnish proof of membership) Should be able to furnish Insurance cover as requires by SriLankan Airlines. This will involve: A. HANDLING AND FOWARDING IMPORTS INTO SRI LANKA Handling and forwarding import shipments from point of origin into Sri Lanka (Door to Airport or Airport to Airport) B. CLEARANCE AND/OR DELIVERY OF REPAIR AND RETURN EXPORTS FROM SRI LANKA FOR SUBSEQUENT RE-IMPORT INTO SRI LANKA Clearance and/or delivery of engineering repair & return export shipments sent from Sri Lanka at destination (Airport to door) 1 P a g e

C. CLEARANCE AND/OR DELIVERY OF EXPORTS SENT FROM SRI LANKA Clearance and/or delivery, at destination of export shipments sent from Sri Lanka. 2. OBLIGATIONS AND ATTENDANT REQUIREMENTS OF THE FREIGHT FORWARDER SHALL BE, BUT NOT LIMITED TO THE FOLLOWING: I. Perform the handling transaction from the place at which the service freight consignments are taken in to their charge up to the time when the freight forwarder is entitled to call upon SriLankan Airlines, consignee or owner of the goods to take delivery of the goods. During this period the goods shall be deemed to be in the charge of the freight forwarder. I Collect, receive, handle, transport, store and despatch service freight consignments (based on the classification which is fully described in Annex A) consigned to SriLankan Airlines by SriLankan Airline s suppliers or to SriLankan Airline s repair agents based overseas, and provide all facilities necessary for such collection, despatch acceptance, handling, cartage, haulage and storage of such consignments to and from Airports listed in Annex B. Also clear and/ or deliver, at destination, export shipments sent from Sri Lanka. (please note the information contained in Annex B is based on the current network of suppliers and is subject to change) Collect, receive, handle, transport, store and despatch service freight consignments (based on the classification which is fully described in Annex A) consigned to SriLankan Airlines by SriLankan Airline s suppliers or to SriLankan Airline s repair agents based overseas, and provide all facilities necessary for such collection, despatch acceptance, handling, cartage, haulage and storage of such consignments at any other location not included in Annex B which will be advised by SriLankan Airlines from time to time at rates which will be agreed in writing by and between the parties. Also clear and/or deliver at destination, export shipments sent from Sri Lanka. Liaise with consignors, consignees and any other relevant parties on behalf of SriLankan Airlines regarding all issues pertaining to service freight shipments consigned to SriLankan Airlines or forwarded from SriLankan Airlines. V. Liaise with SriLankan Airlines Cargo offices and cargo representatives and relevant procurement departments prior to delivering service freight consignments for uplift. VI. V VI Ensure that all routine service freight consignments collected from or delivered by SriLankan Airlines suppliers, repair agents and stations at overseas locations and consigned to SriLankan Airlines (or as required by SriLankan Airlines) are despatched to SriLankan Airlines within a maximum of three (03) working days of being notified by such suppliers, repair agents and stations of its availability of shipment, unless otherwise agreed or for a specific consignment. Ensure that SriLankan Airlines is informed regarding the shipment details of AOG or Critical shipments within a maximum time frame of 01 hour from receipt of such shipment notifications from either SriLankan Airlines or the supplier of SriLankan Airlines. Ensure that the inbound air service freight consignments received for uplift shall be forwarded to Sri Lanka in the most economical and expeditious manner on a reputed 2 P a g e

and reliable air carrier which meets required service levels and duly received into Cargo Terminal 01 at the Bandaranaike International Airport, Katunayake, Sri Lanka. IX. Ensure that all inbound AOG and Critical/ Work Stoppage consignments are received for uplift shall be forwarded to Sri Lanka on the first available flight of a reputed and reliable air carrier out of the origin point of the consignment in the most economical and expeditious manner meeting the required service levels. X. Pay all handling, Airline handling (where relevant), documentation, document handling charges, customs, terminal charges, cartage and other related third party charges and other disbursements pertaining to such consignments and invoice SriLankan Airlines for reimbursement of actual cost incurred, provided however that the rates shall be as mutually agreed by both parties and not exceed the rates set out in Annex C hereof. XI. X XI X Ensure prompt custom clearance and completion of all necessary documentation and formalities at Airports on arrival or despatch (including transhipment) of service freight consignments at all overseas locations. Be responsible, liable and deemed to be in charge at all times for/of all service freight consignments from the time such service freight consignments are taken in to the Freight Forwarder s (its representatives, agents or contractors) charge to the time when SriLankan Airlines, consignee or owner of the goods takes delivery of such service freight consignments from the Freight Forwarder (its representatives, agents or contractors). Check the availability of comprehensive documentation of items to be shipped or uplifted for air carriage to comply with Government, Customs and IATA / CAA / FAA / EASA / JAR regulations and other applicable regulations while accepting the shipments from the supplier, repair agent or station. Ensure that service freight consignments accepted for air transportation: i) do not contain prohibited items according to the documentation provided by supplier, repair agent or station; ii) are accurately packed, labelled and documented in accordance with the purchase order from SriLankan Airlines and/or documents provided by the supplier, repair agent or station and/or any IATA, CAA, FAA, EASA, or JAR or other required/ applicable regulations and TACT Rules; iii) are ready for carriage in a timely manner; and iv) ensure that the goods are correctly packed and do not show any signs of visible damage in outward appearance from the time of receiving the goods from the supplier, repair agent and station till handing over to the airline or its appointed representative for air transportation. XV. Ensure that all details pertaining to a consignment, as indicated on the Airway Bill (including the declared value for custom s purposes) are correct. 3 P a g e

XVI. XV XVI XIX. XX. XXI. XX XXI XX XXV. Be logistically and technically capable of conducting a 24 x 7 operation, especially to handle AOG/ Critical or work Stoppage consignments. Capable to handle AOG/ Critical or Work Stoppage consignments based on SriLankan Airline s requirements. The freight forwarder shall also possess the handling and documentation flexibility to upgrade Critical or Work Stoppage consignments to AOG status when required. Provide SriLankan Airlines with accurate and timely information/ pre-alerts regarding service freight consignments handled on behalf of SriLankan Airlines; such information shall include purchase order number, description of goods, part/serial number (if applicable), Airway Bill number, quantity, flight details, date and port of receipt/ delivery etc. Any changes regarding the parameters of such information/ pre-alerts required by SriLankan Airlines shall be facilitated by the freight forwarder. Provide a 24 hour communication link between the freight forwarder s designated office and SriLankan Airline s nominated officer/s in Sri Lanka. All related hardware and software installation, communication links, rental, maintenance of equipment and other related cost of such facility will be borne by the freight forwarder. Provide on-line and real time tracking and tracing facilities for authorized SriLankan Airline s personnel to monitor the movement of service freight consignments. The freight forwarder will also train the authorized SriLankan Airline s staff to use this facility on an FOC basis. Possess the necessary licenses or approvals to handle the varied nature of service freight consignments such as DGR items, liquor, perishables, repair & return consignments etc. Provide SriLankan Airlines at the end of every month (and ay any other time requested by SriLankan Airlines), a documented summary, including graphical illustration of the total volume shipped, sector- wise and detailed attendant costs. The format of this report shall be discussed and agreed before-hand. Provide SriLankan Airlines a fortnightly/ monthly master invoice, with relevant details. The format of this report shall be discussed and agreed before-hand. Provide comprehensive documentation of items to be uplifted for air carriage to comply with Government, Customs, IATA and other applicable regulations. Maintain the service levels defined in Annex A 3. PRICES, SERVICE LEVEL REVIEW, INVOICING AND PAYMENT I. The agreed rates shall remain fixed for the term of the agreement with provision for review after 02 years. Service levels and overall performance review will be carried out on yearly basis, or as and when required by SriLankan Airlines. 4 P a g e

I The freight forwarder shall invoice SriLankan Airlines for all the service freight consignments received, transported and shipped by the freight forwarder pursuant to the rates set out in the agreement. The freight forwarder shall forward invoices and all relevant supporting documentation, including actual third party related expenses (to an address which will be specified in due course) in arrears on fortnightly basis, along with a master copy indication the breakdown of consignments handled. V. SriLankan Airlines will effect payment to the freight forwarder by cheque within forty five (45) to sixty (60) days from receipt of an accurate invoice and relevant supporting documentation. 4. INSURANCE I. Without prejudice to its obligations as set out above, the Freight Forwarder shall insure its legal liability as a common carrier for an amount not less than US$ 15 million per incident or accident for loss or damage to cargo as well as third party legal liability. i. Such insurance a. to include SriLankan Airlines, their officers, agents, servants and employees as an Additional Assured for their respective rights and interests. b. to provide a severability clause to the effect that all the provisions of the policy, except the limits of liability, shall operate in the same manner as if a separate policy had been issued covering each party insured thereunder. c. Shall provide that in relation to the interests of the Additional Assured, the insurance shall not be invalidated by any action or inaction by the Freight Forwarder or any other person and shall insure the interests of the Additional Assured regardless of any breach or violation by the Freight forwarder or any other person of any warranty, declaration or condition contained in such insurance. d. To include a provision waiving any and all rights of subrogation against SriLankan Airlines, their respective officers, agents, servants and employees. e. To include a provision to give at least 30 days prior written notice before any cancellation or material alteration of the policy. The freight forwarder would have to furnish insurance certificates evidencing satisfactory insurance coverage. 5 P a g e

5. LIABILITY / INDEMNITY I. The Freight Forwarder shall indemnify and hold harmless SriLankan Airlines, its servants, and agents from and in respect of all costs and or expenses including but not limited to legal fees, value of consignment, demurrage, storage charges pursuant to the loss or damage to any cargo handled or to be handled by the Freight Forwarder pursuant to this Agreement whilst in the custody or control of the Freight Forwarder, except where such loss or damage is due to the wilful misconduct of SriLankan Airlines, its servants and agents. I SriLankan Airlines shall indemnify and hold harmless the Freight Forwarder, its servants, and agents from and in respect of all costs and expenses including but not limited to legal fees, demurrage, storage charges in respect of claims made by third parties pursuant to loss of damage to any of the cargo handled pursuant to this Agreement whilst in the custody or control of SriLankan Airlines, except where such loss or damage to the said cargo is due to the wilful misconduct of the Freight Forwarder, its servants and agents. The Freight forwarder shall indemnify and hold harmless SriLankan Airlines, its servants and agents in respect of any cost, expense, loss, damage arising out of any death or injury to any third party or employee of SriLankan Airlines or the Freight Forwarder (its employees, agents representatives or any third party) arising out of the performance of this Agreement except where such death injury cost expenses or damage is due to the wilful misconduct of SriLankan Airlines, its servants or agents. The Freight Forwarder shall indemnify and hold harmless SriLankan Airlines, its servants, agents in respect of any delay in collection, handling or delivery of cargo which is attributable to the negligence or wilful misconduct of the Freight Forwarder, its servants, agents, representatives or contractors. V. The Freight Forwarder shall indemnify and hold harmless SriLankan Airlines, its servants, agents in respect of all third party charges in respect of transportation, handling, collection, delivery of cargo handled or to be handled and all port/ airport duties, fines, impost demurrage, storage charges arising in respect of any cargo handled or to be handled. 6. ADDITIONAL INFORMATION REQUIRED TO BE SUBMITTED BY THE FREIGHT FORWARDER I. Illustrated network in USA & Canada, with indication of own offices or representation I Details of representation in Sri Lanka Airline/ Transport partners Gateways available V. Storage and warehouse facilities VI. V List of current clientele Details of on-line tracing and tracking facility 6 P a g e

VI Copy of the Audited Financial Reports for 2010/2011 & 2011/2012 IX. Details of designated office and world-wide office contact person to be provided with addresses, telephone/ fax numbers, e-mail addresses and their operating business hours. 7. GENERAL INFORMATION I. All tenders will have to be forwarded directly from the Head Office of the freight forwarder. I The rate sheet should also be submitted in MS EXCEL format as a soft copy in a USP Drive/ Compact Disk (CD) All tenders shall clearly specify the currency of transaction and payment terms. No price increases will be permitted upon submission of the tender. V. All tenders shall clearly indicate the rates and attendant attributes, i.e. attributes included in the rates quoted and/or attributes excluded from the rates quoted. (Please ensure to use the given format in Annex C) VI. V VI IX. All shipping terms used shall be as stated u the latest edition of Incoterms. SriLankan Airlines reserves the right to reject any tender in whole or part without giving a reason. SriLankan Airlines reserves the right to award the tender on State wise, based on operational requirements. SriLankan Airlines is not bound to accept the lowest tender of any tenderer and will not be responsible for or pay any expenses or loss which may be incurred by any tenderer in the preparation or forwarding of its tender. X. Approximate number of Air imports service freight consignments per month 50 Approximate number of Air export service freight consignment per month 25 (Subject to operational requirements the above figure might vary) 8. DEFINITIONS AOG shall mean Aircraft On Ground CIS shall mean Customer Information System FAA shall mean Federal Aviation Administration CAA shall mean Civil Aviation Authority EASA shall mean European Aviation Safety Agency JAR shall mean Joint Aviation Requirement IATA shall mean International Air Transport Association TACT shall mean The Air Cargo Tariff POD shall mean Proof of Delivery 7 P a g e

ANNEX A CLASSIFICATION OF SERVICE FREIGHT OR STORES CONSIGNMENTS & SERVICE LEVELS: Service Freight consignments or Stores consignments Relating to consignments forwarded to SriLankan Airlines from Suppliers, Repair agents, Stations, and the consignments forwarded from SriLankan Airlines to Repair agents and Stations are classified as follows: Type of Consignment AOG Critical/ Work Stoppage Routine Definition Relating to aircraft on ground spares consignments Relating to stores consignments which will have a critical bearing on the service levels of SriLankan Airlines. Relating to day-to-day operations. Priority Should be uplifted on the first available flight out of the origin point. Should be uplifted within 03 working days or as required by SriLankan Airlines. The relevant procurement authorities will be responsible to classify or upgrade the status of the consignments, based on operational requirements. Service Levels: A. Ensure that SriLankan Airlines is informed regarding the shipment details of AOG or Critical shipments within a maximum time frame of 01 hour from receipt of such shipment notifications from either SriLankan Airlines or the supplier of SriLankan Airlines. B. AOG / Critical Service Freight Shipments Shipment should reach the required destination in the most efficient manner (shortest time period) C. If an AOG/ Critical shipment has not been collected within 2 hours of consignment readiness & gets delayed by 2 hours or more to reach the specified destination as stipulated by SriLankan Airlines/ supplier even after obtaining all required details/ instructions from SriLankan Airlines and/ or the Supplier of SriLankan Airlines, the freight forwarder shall pay 1% of the shipment value as liquidated damages to SriLankan Airlines if such delay had occurred due to the negligence of the Freight Forwarder. D. Routine Service Freight Shipments Shipments should reach the destination in the most economical and efficient manner within 03 working days as required by SriLankan Airlines. 8 P a g e

ANNEX B SHIPMENT POINTS COUNTRY USA Canada Atlanta Chicago Los Angeles Miami New York Ohio Washington Toronto City 9 P a g e