NATIONAL HOUSING CORPORATION P.O. BOX 30257-00100 NAIROBI. TENDER NO. NHC/INS/415/2013 FOR PROVISION OF GROUP LIFE INSURANCE COVER FOR NHC STAFF CLOSING DATE 4 TH DECEMBER, 2013 AT: 11.00AM TENDER DOCUMENT FOR PROCUREMENT OF GROUP LIFE INSURANCE SERVICES
Table of Contents Page Section I INVITATION FOR TENDERS... 3 Section II INSTRUCTION TO TENDERERS. 4 Appendix to instructions to tenderers.. 16 Section III GENERAL CONDITIONS OF CONTRACT.. 17 Section IV SPECIAL CONDITIONS OF CONTRACT. 24 Section V SCHEDULE OF REQUIREMENTS. 26 Section VI STANDARD FORMS. 29 1. FORM OF TENDER. 29 2. CONTRACT FORM.. 30 3. CONFIDENTIAL BUSINESS QUESTIONNAIRE FORM. 31 4. TENDER QUESTIONNAIRE. 33 5. TENDER SECURITY FORM. 34 6. PERFORMANCE SECURITY FORM. 35 2
SECTION I - INVITATION FOR TENDERS TENDER REF. NO. - NHC/INS/415/2013 DATE: 19 th Nov, 2013 TENDER NAME PROVISION OF GROUP LIFE COVER 1.1 The National Housing Corporation, Nairobi invites sealed tenders from eligible candidates for Provision of Group life Insurance Cover. 1.2 Interested eligible candidates may obtain further information from and inspect the tender documents at Procurement Office located at NHC House, Agha Khan Walk on 11 th floor P. O. Box 30257-00100 Nairobi. Tel. 020-312149/7 - Ext 292 during normal office working hours. 1.3 A complete set of tender documents may be obtained by interested candidates upon payment of a non-refundable fee of Kshs.1000/= in cash at Co-operative bank Co-op House using NHC deposit slip or bankers cheque payable to National Housing Corporation. 1.4 Prices quoted should be net inclusive of all taxes, and delivery costs, must be in Kenya Shillings and shall remain valid for 120 days from the closing date of the tender. 1.5 Completed tender documents are to be enclosed in plain sealed envelopes, marked with the tender number and name and be deposited in the Tender Box on 11 th floor at National Housing Corporation next to Reception Desk on 11 th Floor, Nairobi or be addressed to: The Managing Director, National Housing Corporation P. O. Box 30257-00100 NAIROBI. so as to be received on or before 4 th December, 2013 at 11.00 a.m. 1.6 All tenders must be accompanied by bid security of 2% of the premium in form of Bank guarantee or Bankers cheque. 1.7 Tenders will be opened immediately thereafter in the presence of the candidates representatives who choose to attend at the Conference room located on 10 th floor, NHC House. DAVID BOSIRE CHIEF PROCUREMENT OFFICER For: MANAGING DIRECTOR 3
SECTION II - INSTRUCTION TO TENDERERS Table of Clauses Page 2.1 Eligible Tenderers. 5 2.2 Cost of Tendering.. 5 2.3 Contents of Tender document 5 2.4 Clarification of Tender document.. 6 2.5 Amendments of Tender document.. 6 2.6 Language of Tenders 7 2.7 Documents Comprising the Tender. 7 2.8 Tender Form.. 7 2.9 Tender Prices 7 2.10 Tender Currencies 7 2.11 Tenderers Eligibility and Qualifications 8 2.12 Tender Security. 8 2.13 Validity of Tenders.. 9 2.14 Format and Signing of Tenders..9 2.15 Sealing and Marking of Tenders 9 2.16 Deadline for Submission of Tenders 10 2.17 Modification and Withdrawal of Tenders 10 2.18 Opening of Tenders 11 2.19 Clarification of Tenders.. 11 2.20 Preliminary Examination.. 11 2.21 Conversion to Single Currency..12 2.22 Evaluation and Comparison of Tenders. 12 2.23 Contacting the Procuring Entity.13 2.24 Post-Qualification. 13 2.25 Award Criteria.. 13 2.26 Procuring Entity s Right to Accept or Reject any or all Tenders. 14 2.27 Notification of Award.. 14 2.28 Signing of Contract 15 2.29 Performance Security 15 2.30 Corrupt or Fraudulent Practices.15 4
SECTION B. GENERAL INFORMATION Introduction. In this Tender Document the following terms and expressions shall have the meanings: Eligible Tenderer means Insurance Brokerage Firm, which meets the eligibility requirements, stipulated in paragraph 12 of section B Corporation means the National Housing Corporation. Services means the services to be provided by the successful Tenderer in relation to the Insurance Policies set out in the schedule of requirements in Section E. Tender Document This tender document comprising the documents listed in paragraph 4.1 of section B. 1. Eligible Tenderers 1.1 This invitation for Tenders is open to all Insurance Companies(underwriters).Successful Tenderers shall provide the services set out in the scope of service schedule 1 of section E hereto, for a duration commencing 1 st January 2014 and ending on 31 st December 2014 (hereinafter referred to as the term) both dates inclusive. 1.2 Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent practices. 2. Eligible Services/Scope of Cover 2.1 All services to be supplied under the contract shall be Insurance Policy Covers as stated in the Tender document. 2.2 The description and scope of cover for the policies forming the subject of this Tender are listed in schedule of requirements in section E hereto. 2.3 Tenderers shall ascertain the solvency and financial strength of the underwriter they propose for each policy. 5
3. Cost of Tendering 3.1 The Tenderer shall bear all costs associated with the preparation and submission of its tender, and the Corporation, will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the tendering process. The Tender Document 4. Contents The tender document comprises the documents listed below and any addenda(s) issued in accordance with clause 6 of these instructions to tenders. a) Invitation for Tenders b) General information c) General Conditions of Contract d) Special Conditions of Contract e) Schedule of Requirements (scope of services and policies) f) Tender Form and Price Schedules g) Tender Security (Bid Bond). The Tenderer is expected to examine all instructions, forms, terms, and specifications in the tender documents. Failure to furnish all information required by the tender documents or to submit a tender not substantially responsive to the tender documents in every respect will be the Tenderers risk and may result in the rejection of its tender. 5. Clarification of Documents 5.1 A prospective Tenderer requiring any clarification of the tender document may notify the Corporation in writing or by cable (hereinafter, the term cable is deemed to include telex and facsimile) at the entity s address indicated in the invitation for tenders. The Corporation will respond in writing to any request for clarification of the tender documents, which it receives no later than seven (7) days prior to the deadline for the submission of tenders, prescribed by the Corporation. Written copies of the procuring entities response (including an explanation of the query but without identifying the source of inquiry) will be sent to all prospective Tenderer that have received the tender document. 6
6. Amendment of Documents 6.1 At any time prior to the deadline for submission of tenders, the Corporation, for any reason, whether at its own initiative or in response to a clarification requested by a prospective Tenderer, may modify the tender documents by amendment. 6.2 All prospective candidates that have received the tender documents will be notified of the amendment in writing or by cable, and will be binding on them. 6.3 In order to allow prospective tenderers reasonable time in which to take the amendment into account in preparing their tenders, the Corporation, at its discretion, may extend the deadline for the submission of tenders. Preparation of Tenders 7. Language of Tender The tender prepared by the Tenderer, as well as all correspondence and documents relating to the tender exchanged by the Tenderer and the Corporation, shall be written in English language, provided that any printed literature furnished by the Tenderer may be written in another language provided they are accompanied by an accurate English translation of the relevant passages in which case, for purposes of interpretation of the tender, the English translation shall govern. 8. Documents Comprising the Tender 8.1 The tender prepared by the Tenderer shall comprise the following component: (a) A completed Tender Form/Price Schedule in accordance with paragraph 9,10 and 11 below. (b) Documentary evidence established in accordance with paragraph 12 that the Tenderer is eligible to tender and is qualified to perform the contract if its tender is accepted; the information shall be submitted in the format prescribed under paragraph 12 & 13. (c) Tenderers comments and suggestions on the scope of service and policies and facilities to be provided by the Corporation, including samples of the proposed policies. (d) Tender security furnished in accordance with paragraph 14. 7
9. Tender Form 9.1 The Tenderer shall complete the Tender form and the appropriate Price Schedule furnished in the Tender documents, indicating the policies quoted for the premium from 1 st January 2014 to expire on 31 st December 2014 and the recommended underwriter(s). 9.2 The price schedule for each policy shall be supported by un-varied price quotations from the Underwriter(s). 10. Tender Prices 10.1 Prices indicated on the Price Schedule shall be the cost of the services quoted including premium, brokerage commission, all duties, levies and taxes. The Tenderer shall attach original quotations from the underwriter(s). Failure to include the underwriter quotation will lead to dis-qualification. Underwriters must also observe the Insurance Act and declared rates when quoting for the respective policies as required by the Insurance Regulatory Authority. 10.2 Unit Prices quoted by the Tenderer shall be fixed during the term of the contract. Tenderers shall ensure that the sum insured under the policies may be adjustable accordingly by suitable means at the discretions of the Corporation from time to time without changing the unit rates and not subject to variation on any account. A tender submitted with an adjustable price quotation will be treated as non-responsive and will be rejected, pursuant to paragraph 22. 11. Tender Currencies 11.1 Prices shall be quoted in Kenya shillings. 12. Tenderers Eligibility and Qualifications. 12.1 Pursuant to paragraph 1 of section B, the tender shall furnish, as part of its tender documents establishing the tenderes eligibility to tender and its qualifications to perform the contract if its tender is accepted 12.2 The documentary evidence of the tenderers eligibility to tender shall establish to the Corporation s satisfaction that the tenderer, at the time of submission of its tender, is eligible as defined under paragraph 1 of section B. 12.3 The documentary evidence of the tenderers qualifications to perform the contract if its tender is accepted shall establish to the Corporation s 8
satisfaction: that the tenderer has the Financial, Technical and Production capability necessary to perform the contract: 13. Services Eligibility and Conformity to Tender Document. 13.1 Pursuant to paragraph 2 of this section, the tenderer shall furnish, as part of its tender, documents establishing the eligibility and conformity to the tender documents of all the policies, which the tenderer proposes to provide under the contract. 13.2 The documentary evidence of conformity of the services to the tender documents may be in the form of literature, drawings, and data, and shall consist of: A clause-by-clause commentary on the Corporation s Technical specifications, demonstrating substantial responsiveness of the policies to those specifications, or a statement of deviations and exceptions to the provisions of technical Specifications. 14. Financial Strength of the underwriter 14.1 The underwriter must be financially secure and has been in existence for at least five years. The Underwriter shall also have good record of settling claims and has good solvency margins. Methodology and work-plan for claims settlement. 14.2 The underwriter must illustrate the methodology and work-plan that will be used to carry out the assignments and indicate the proposed claims turn around period. All underwiters are also required to indicate their Risk Management Capacity. They are also required to illustrate the methodology to be used to carry out loss control surveys and recommendations noting the viability of the recommendations with regard to time and cost. 14.3 Tender Security 14.3.1 The tenderer must furnish, as part of its tender, a tender security for the amount of KSHS 200,000.00. 14.3.2 The tender security is required to protect the Corporation against the risk of tenderer s conduct which would warrant the security s forfeiture, pursuant to paragraph 14.3.7 9
14.3.3 The tenderer security shall be denominated in Kenya Shillings or in another freely convertible currency, and shall be in the form of a bank guarantee from a reputable bank located in Kenya in the form provided in the tender documents or any other form acceptable to the Corporation and valid for thirty (30) days beyond the validity date of the tender. 14.3.4 Any tender not secured in accordance with paragraph 14.3.1 and 14.3.3 will be rejected by the Corporation as non-responsive, pursuant to paragraph 22. 14.3.5 Unsuccessful tenderer s tender security will be discharged or returned as promptly as possible, but not later than fourteen days (14) days after the date of award. 14.3.6 The successful tenderer s tender security will be discharged upon the tenderer signing the contract, pursuant to paragraph 30, and furnishing the professional indemnity, pursuant to paragraph 31. 14.3.7 The tender security may be forfeited: (a) If a tenderer or the recommended underwriter varies or withdraws in whole or in part the quoted prices or if the recommended underwriter fails to provide cover in accordance with the quotation given to the tenderer during the period of tender validity specified by the Corporation in the tender document, or (b) In the case of a successful tenderer, if the tenderer fails: (i) (ii) to sign the contract in accordance with paragraph 30 or to furnish performance security (Professional indemnity) in accordance with paragraph 31 14.3.8 Where the tender security is forfeited due to the underwriter withdrawing or varying the quotation given to the tenderer, for reasons other than the tenderer s default, the Corporation shall be entitled to disqualify the respective Underwriters from participating in undertaking its business in future. 15. Validity of Tenders 15.1 Tenders shall remain valid for 120 days or as specified in the tender documents after date of tender opening prescribed by the Corporation pursuant to paragraph 18. A tender valid for a shorter period shall be rejected by the Corporation as non-responsive. 10
15.2 In exceptional circumstances, the Corporation may solicit the Tenderer s consent to an extension of the period of validity. The request and the responses thereto shall be made in writing. The tender security provided under paragraph 14 shall also be suitably extended. A tenderer may refuse the request without forfeiting its tender security. A tenderer granting the request will not be required nor permitted to modify its tender. 16. Formats and Signing of Tender 16.1 The Tenderer shall prepare two (2) properly bound copies of tender, clearly marking each ORIGINAL TENDER and COPY OF TENDER, as appropriate. In the event of any discrepancy between them, the original shall govern. 16.2 The original and all copies of the tender shall be typed or written in indelible ink and shall be signed by the tenderer or person or persons duly authorised to bind the tenderer to the contract. The latter authorization shall be indicated by written power-of-attorney accompanying the tender. All pages of the tender, except for un-amended printed literature, shall be initialled by the person or persons signing the tender. 16.3 The tender shall have no interlineations, erasures, or overwriting except as necessary to correct errors made by the tenderer, in which case such corrections shall be initialled by the person or persons signing the tender. Submission of Tenders 17. Sealing and Marking of Tenders 17.1 The tenderer shall seal the original and each copy of the tender in separate envelopes, duly marking the envelopes as ORIGINAL and COPY. The envelopes shall then be sealed in an outer envelope. 17.2 The inner and outer envelopes shall: (a) be addressed to Corporation at the following address: The Managing Director National Housing Corporation P O Box 30257-00100 NAIROBI. (b) bear, Tender No.NHC/INS/415//2013 TENDER FOR PROVISION FOR GROUP LIFE INSURANCE COVER FOR NHC 11
STAFF, and the words: DO NOT OPEN BEFORE, 4 TH DECEMBER 2013 at 11.00 am. 17.3 The inner envelopes shall also indicate the name and address of the tenderer to enable the tender to be returned unopened in case it is declared late. 17.4 If the outer envelope is not sealed and marked as required by paragraph 17.2, the Corporation will assume no responsibility for the tender s misplacement or premature opening. 18. Deadline for Submission Tenders 18.1 Tenders must be received by the Corporation at the address specified under paragraph 17.2 not later than 11.00 am on 4 th December 2013. 18.2 The Corporation may, at its discretion, extent this deadline for the submission of tenders by amending the tender documents in accordance with paragraph 6, in which case all rights and obligations of the Corporation and candidates previously subject to the deadline with thereafter be subject to the deadline extended. 19. Modifications and Withdrawal of Tenders 19.1 The tenderer may modify or withdraw its tender after the tender s submission, provided that written notice of the modification, including substitution or withdrawal of the tenders, is received by the procuring prior to the deadline prescribed for submission of tenders. 19.2 The Tenderer s modification or withdrawal notice shall be prepared, sealed, marked and dispatched in accordance with the provisions of paragraph 17. A withdrawal notice may also be sent by cable, but followed by a signed confirmation copy, postmarked not later than the deadline for submission of tenders. 19.3 No tender may be modified after the deadline for submission of tenders. 19.4 No tender may be withdrawn in the interval between the deadline for submission of tenders and expiration of the period of tender validity specified in the Tender Document. Withdrawal of a tender during this interval will result in the Tenderer s forfeiture of its tender security, pursuant to paragraph 14.7. 12
Opening of Tenders 20. Opening of Tenders 20.1 The Corporation will open all tenders in the presence of tenderers representatives who choose to attend, immediately after the tender closing time and date in following location: NHC House 10 th floor conference room. The tenderers representatives who are present shall sign a register evidencing their attendance. 20.2 The tenderers names, tender modifications or withdrawals, tender prices, discounts and the presence or absence of requisite tender security and such other details as the Corporation, at its discretion, may consider appropriate, will be announced at the opening time. 20.3 The Corporation will prepare minutes of the tender opening. 21. Clarification of Tenders 21.1 To assist in the examination, evaluation and comparison of tenders the Corporation may, at its discretion, ask the tenderer for a clarification of its tender. The request for clarification and the response shall be in writing, and no change in the prices or substance of the tender shall be sought, offered, or permitted. 21.2 Any effort by the tenderer to influence the Corporation s tender evaluation, tender comparison or contract award decisions may result in the rejection of the tenderers tender. 22. Preliminary Examination 22.1 The Corporation will examine the tenders to determine whether they are complete, whether any computational errors have been made, whether required sureties have been furnished, whether the documents have been properly signed, and whether the tenders are generally in order. 22.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy between the unit price and the total price that is obtained by multiplying the unit price quantity, the unit price shall prevail, and the total price shall be corrected. If the candidate does not accept the correction of the errors, its tender will be rejected, and its tender security may be forfeited. If there is a discrepancy between words and figures, the amount in words will prevail. 13
22.3 The Corporation may waive any minor informality or non-conformity or irregularity in a tender which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any tenderer. 22.4 Prior to the detailed evaluation, pursuant to paragraph 23, the Corporation will determine the substantial responsiveness of each tender to the tender documents. For purposes of these paragraphs, a substantially responsive tender is one that conforms to all the terms and conditions of the tender documents without material deviations. The Corporation s determination of tender s responsiveness is to be based on the contents of the tender itself without recourse to extrinsic evidence. 22.5 If a tender is not substantially responsive, it will be rejected by the Corporation and may not subsequently be made responsive by tenderer by correction of the nonconformity. 23. Evaluations and Comparison of Tenders 23.1 The Corporation will evaluate and compare the tenders which have been determined to be substantially responsive, pursuant to paragraph 22 as follows: Preliminary /Mandatory Requirements (i) Statutory Requirements (a) Certificate of Company Registration under the Companies Act, Cap 486 and in existence for at least 5 years. (b) Current Business Permit from the relevant Local Authorities. (c) Current trading license under trading licensing Act, Cap 497 (d) Registration Certificate as an underwriter by Commissioner of Insurance for the year 2013 (e) Professional indemnity cover with a limit of not less than 50,000,000.00 from a reputable Insurance Company. (f) Tender security of Kshs.200,000.00 14
Technical Requirements-Mandatory Requirements (a) Staff Qualification and Firm Experience (i) (ii) The Tender should have a minimum of three professional staff, (minimum qualification being a Bachelor of Commerce, (Insurance option) or a Diploma from a reputable Insurance Institute. The Principal Officer must posses the experience, academic and professional qualifications set out below. Principal Officer shall have at least seven years experience in senior management in the Insurance Industry and minimum academic qualification of University degree and Associate of the Chartered Insurance Institute. Firms Past Experience The Tenderers must have serviced at least 5 large corporate clients in the last 5 years. Please provide this information in a good summary indicating: the clients name, premium turnover, type of cover, period of cover etc for all the five clients. (b) Professional Indemnity Cover Brokers shall be expected to have a Professional indemnity cover with a limit of not less than Kshs.50, 000,000.00. The Insurance cover shall have been obtained form a reputable insurance company. The policy should be valid for the period of the tender validity and if awarded the contract, remain so for the term of the policy considering the magnitude of our risk exposures, firms with higher levels of cover will be given credit. Compensation shall be claimed against this cover if the underwriter fails to perform any of its obligations or provides services failing below the standard set out therein or is in breach of any of its material obligations under the contract. (c) Registration as a member of Association of Insurance Brokers The Tenderers must be registered members with the Association of Insurance companies for the year 2013. A copy of the membership certificate must be attached. 15
(d) Premium Turnover The Underwriter shall submit documentary evidence indicating that their premium turnover over the last two years was at least Kshs.500, 000,000.00 per year. This should be certified by the Principal officer and the Firm s Auditor and must be included as an appendix. The information should include a list of accounts constituting the declared turnover. The Corporation reserves the right to verify this information with the Tenderer s clients. (e) Responsiveness and full compliance to the scope of service and cover in accordance with paragraph 23.2 hereto. 23.2 Scope of Insurance Cover (a) Pursuant to paragraph 2 of this section, Tenderers shall furnish quotation indicating the premium quoted per class, excess/deductibles, limit of liability, free cover limits (where applicable), and extensive clauses which enhance the utility of the insurance cover above provided by the standard policy issued by the underwriter. (b) Financial Strength/Audited Accounts of the Underwriter 24. Contacting the Corporation The underwriter must be financially secure and has been in existence for at least five (5) years. Copies of the latest audited accounts of the proposed underwriters for the last two years must be submitted. 24.1 Subject to paragraph 21, no tenderer shall contact the Corporation on any matter relating to its tender, form the time of the tender opening to the time contract is awarded. 24.2 Any effort by a tenderer to influence the Corporation in its decisions on tender evaluation, tender comparison, or contract award may result in rejection of the Tenderer s tender. 16
Award of Contract 25. Post-qualification 25.1 In the absence of pre-qualification, the Corporation will determine to its satisfaction whether the tender that is selected as having submitted the lowest evaluated responsive tender is qualified to perform the contract satisfactorily. 25.2 The determination will take into account the tender financial and technical capabilities. It will be based upon an examination of the documentary evidence of the tenderers qualifications submitted by the tenderer, pursuant to paragraph 23, as well as such other information as the Corporation deems necessary and appropriate. 25.3 An affirmative determination will be a prerequisite for award of the contract to the tenderer. A negative determination will result in rejection of the tenderer s tender, in which event the Corporation will proceed to the next lowest evaluated tender to make a similar determination of that Tenderer s capabilities to perform satisfactorily. 26. Award Criteria 26.1 Subject to paragraph 10,23 and 28 the Corporation will award the contract to the successful tenderer(s) whose tender has been determined to be substantially responsive and has been determined to be the lowest evaluated tender, provided further that the tenderer is determined to be qualified to perform the contract satisfactorily. The award is to the lowest responsive bidder per policy. 27. Corporation s Right to Vary Quantities 27.1 The Corporation reserves the right at the time of contract award to increase or decrease the quantity of services originally specified in the schedule of requirements without any change in unit price or other terms and conditions. 28. Corporation s Right to accept or Reject any or All Tenders 28.1 The Corporation reserves the right to accept or reject any tender, and to annul the tendering process and reject all tenders at any time prior to contract award, without thereby incurring any liability to the affected tenderer or tenderers or any obligation to inform the affected tenderer or tenderers of the grounds for the Corporation s action. 17
29. Notification of Award 29.1 Prior to the expiration of the period of tender validity, the Corporation will notify the successful tenderer in writing that its tender has been accepted. Similarly the Corporation will promptly notify each unsuccessful Tenderer of the outcome. 29.2 The notification of award will not constitute the formation of the contract until after 14 days. 29.3 Upon the successful Tenderer s furnishing of the performance security (Professional Indemnity) pursuant to paragraph 31, the Corporation will promptly notify each unsuccessful tenderer and will discharge its tender its tender security, pursuant to paragraph 14. 30. Signing of Contract 30.1 At the same time as the Corporation notifies the successful tenderer that its tender has been accepted, the Corporation will send the tenderer the contract form provided in the tender documents, incorporating all agreements between the parties 30.2 Within Fourteen (14) days of receipt of the Contract Form, the successful tenderer shall sign and date the contract and return it to the Corporation. 31. Performance Security (Professional Indemnity Cover) 31.1 Within fourteen days of the receipt of notification of award from the Corporation, the successful tenderer shall furnish the performance security in accordance with the conditions of contract, in the Performance Security Form provided in the tender documents, or in another form acceptable to the Corporation. Or ensure that it shall, during the term of contract, maintain a valid professional indemnity cover with a reputable insurance company as required under paragraph 23. 31.2 Failure of the successful tenderer to comply with the requirement of paragraph 30 or paragraph 31 shall constitute sufficient grounds for the annulment of the award and forfeiture of the tender security, in which event the Corporation may make the award to the next lowest evaluated candidate or call for new tenders. 18
32. Corrupt Fraudulent Practices 32.1 The Corporation requires that tenderers observe the highest standard of ethics during the procurement process and execution of contracts. In pursuance of this policy, the Corporation:- (a) defines, for purposes of provision, the terms set forth below as follows: (i) (ii) corrupt practice means the offering, giving, receiving or soliciting of any thing of value to influence the action of a public official in the procurement process or in contract execution: and fraudulent practice means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the Corporation, and includes collusive practice among tenderer (prior to or after tender submission) designed to establish tender prices at artificial non-competitive levels and to deprive the Corporation of the benefits of free and open competition. (b) (c) Will reject a proposal for award if it determines that the tenderer recommended for award has engaged in corrupt or fraudulent practices in the competing for, or for the contract question: Will declare a firm ineligible, either indefinitely or for a stated period of time, to be awarded any contract if it at any time determines that the firm has engaged in corrupt or fraudulent practices in competing for, or in executing, a contract. 32.2 Furthermore, tenderers shall be aware of the provision stated in the General conditions of contract. 19
SECTION C- GENERAL CONDITIONS OF CONTRACT 1. Definitions 1.1 In this contract, the following terms shall be interpreted as indicated: (a) (b) (c) The Contract means the agreement entered into between the Corporation and the tenderer, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. The Contract Price means the price payable to the tenderer under the Contract for the full proper performance of its contractual obligations. Service means the services to be provided by the successful Tenderer in relation to the insurance policies set out in schedule 1 hereto. (d) The Corporation means the organization purchasing the goods/services under this contract (e) The Tenderer means the individual or firm supplying the goods/services under this contract. 2. Application 2.1 These general conditions shall apply in all contracts made by the Corporation for the procurement of services. 3. Use of Contract Documents and Information 3.1 The candidate shall not, without the Corporation s prior written consent, disclose the contract, or any provision thereof, or any specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the Corporation in connection therewith, to any person other than a person employed by the tenderer in the performance of the contract. 3.2 The tender shall not, without the Corporation s prior written consent, make use of any document or information enumerated in paragraph 3.1 above. 3.3 Any document, other than the Contract itself, enumerated in paragraph 3.1 shall remain the property of the Corporation and shall be returned (all 20
copies) to the Corporation on completion of the Tenderer s performance under the contract if so required by the Corporation. 4. Performance Security (Professional Indemnity Cover) 4.1 Within thirty (30) days of receipt of the notification of contract award, the successful tenderer shall furnish to the Corporation the performance security (Professional Indemnity Cover) in the amount specified. 4.2 The proceeds of the performance security (Professional Indemnity Cover) shall be payable to the Corporation as compensation for any loss resulting from the Tenderer s failure to complete its obligations under the Contract. 4.3 The performance security (Professional Indemnity Cover) shall be denominated in the currency of the contract, and shall be in the form of a bank guarantee or an irrevocable letter of credit issued by a reputable bank located in Kenya or abroad, acceptable to the Corporation, in the form provided in the tender documents. 4.4 The performance security will be discharged by the Corporation and returned to the candidate not later than thirty (30) days following the date of completion of the tenderer s performance obligations under the contract, including any warranty obligations, under the contract. 5. Payment 5.1 The method and conditions of payment to be made to the tenderer under this contract shall be specified in special conditions of contract 5.2 Payments shall made promptly by the Corporation as specified in the contract. 6. Prices 6.1 Prices charged by the tenderer for services performed under the contract shall not, with the exception of any price adjustments authorised in special conditions of contract, vary from the prices by the tenderer in its tender. 7. Assignment 7.1 The tenderer shall not assign, in whole or in part, its obligations to perform under this contract, except with the Corporation s prior written consent. 21
8. Subcontracts 8.1 The tendere shall notify the Corporation in writing of all subcontracts awarded under this contract if not already specified in the tender. Such notification, in the original tender or later, shall not relieve the tenderer from any liability or obligation under the contract. 9. Termination for Default 9.1 The Corporation may, without prejudice to any other remedy for breach of contract, by written notice of default sent to the tenderer, terminate this contract in whole or in part: (a) if the tenderer fails to deliver any or all of the services within the period(s) specified in the contract, or within any extension thereof granted by the Corporation. (b) If the tenderer fails to perform any other obligation(s) under the contract. (c) If the tenderer, in the judgment of the Corporation has engaged in corrupt or fraudulent practices in competing for or in executing the contract. 9.2 In the event the Corporation terminates the contract in whole or in part, it may procure, upon such terms and in such manner, as it deems appropriate, services similar to those undelivered, and the tenderer shall be liable to the Corporation for any excess costs for such similar services. 10. Liquidated Damages 10.1 If the tenderer fails to deliver any or all of the services within the period(s) specified in the contract, the Corporation shall, without prejudice to its other remedies under the contract deduct from the contract prices liquidated damages sum equivalent to 0.5% of the delivered price of the delayed services up to a maximum deduction of 10% of the delayed services. After this the tenderer may consider termination of the contract. 11. Resolution of Disputes 11.1 The Corporation and the tenderer shall make every effort to resolve amicably by direct informal negotiation any disagreement or dispute arising between them under or in connection with the contract. 22
11.2 If, after thirty (30) days from the commencement of such informal negotiations both parties have been unable to resolve amicably a contract dispute, either party may require adjudication in an agreed national or international forum, and/or international arbitration. 12. Languages and Law 12.1 The language of the contract and the law governing the contract shall be English language and Laws of Kenya respectively unless otherwise stated. 13. Force Majeure 13.1 The tenderer shall not be liable for forfeiture of its performance security, or termination for default if and the extent that its delay in performance or other failure to perform its obligations under the contract is the result of an event of Force Majeure. 23
SECTION D. SPECIAL CONDITIONS OF CONTRACT 1. Special Conditions of Contract shall supplement the General Conditions of Contract. Whenever there is a conflict, the provisions herein shall prevail over those in the General Conditions of Contract 2. Scope of services The scope of services will include: (i) (ii) (iii) Structuring and obtaining optimum policy covers from Underwriters in accordance with the tenders submitted. Remitting to the Underwriters all premiums paid to you by the Corporation in accordance with the provision and requirements of the Insurance Act, cap 487 and gives the Corporation written confirmation on the same within seven days of remittance. When requested, you should furnish the Corporation with explicit authority from the Underwriter to collect the premium on their behalf. Analysing the policy document and endorsements therein, and if the entire policy document is found to be satisfactory, such document to be deposited with the Corporation not later 15 days of inception of cover. (iv) Ensuring proper claims administration by fully coordinating documentation requirements between the Corporation and the selected underwriter. (v) (vi) (vii) (viii) (ix) (x) Ensuring all documented claims is settled within fourteen days. Ensuring preparation of monthly claims bordereaux, which must be submitted, to the Corporation by the 15 th of the following month. Arranging quarterly meetings to review performance of the policy by 15 th of the following quarter. Ensuring that sums insured under the policy will be adjustable accordingly by suitable means at the discretions of the Corporation form time to time. Negotiating with the qualified underwriter any other pertinent aspects of the policy that may arises during the term of the policy. Such other services as may be related or ancillary to the due performance of the above work. 24
3. FACILITIES TO BE PROVIDED BY THE CORPORATION (i) (ii) (iii) Provide information required for the Assignment within reasonable time of request. Provide timely comments on documents prepared by the brokers for the Assignment. Provide details of the assets as to locality and any such other details as may be requested by the Broker from time to time. 4. ADDITIONAL INSTRUCTIONS ON SUBMISSION OF FINANCIAL QUOTATIONS. The following conditions are mandatory and MUST be observed a) The underwriter shall submit one competitive financial quotation (premiums) for each class of risks/cover from a reputable Insurance company as approved by the Commissioner of Insurance in terms of their: - Solvency Margins - Claims Settlement Records - Profitability - Reputation. Competitiveness in this context means sufficiently low premium but delivery of high quality services compared to competitors. (Refer to condition e below) Quotations from underwriters facing liquidity problems or with poor claims settlement records will not be considered. b) Original quotations from underwriters must be on their letter heads signed/authorized by their Chief Executives Officers/ Managing Directors/ Principal Officers and MUST be attached to the tender documents. For purposes of this, the Corporation will not accept Faxed,scaned or e-mailed quotations from any Underwriters.This may lead to automatic rejection of the bid. c) Bidders must submit the premium summary sheet together with the original copies of the quotations from the underwriter(s). All bidders must ensure that the 25
premiums submitted in the premium sheet is the same as those in the insurers original quotation sheet. d) Quotations must show Gross Premium(s) including Commissions, taxes, levies etc failure to which may lead to rejection of the bid. e) Conditions to be met by the insurance Company to ensure quality of underwriters: i)must be registered with the Commissioner of insurance for the current year and a copy of the current licence must be attached. ii) Must have done annual premiums turnover of a minimum Kshs 500,000,000.00 excluding Motor Insurance in the year 2009 and or 2010. iii) Must have paid up capital of at least Kshs 150,000,000.00 iv) Must submit a copy of the latest audited accounts for last three year. v) Must submit copies of the following: -Pin Certficate, -Tax Compliance Certificate -Certificate of Incorporation vi) Must be a member of AKI f) Rates applied must be indicated and must be in conformity with the Insurance Regulatory Authority Requirements. The Corporation reserves the right to invite documentary evidence from the Authority. g) All premiums must be guaranteed for twelve (12) months h) Excesses/ deductibles must be indicated i) Limits of Liabilities must be indicated j) Free cover limits where applicable must also be indicated k) All completed proposals must be returned in two copies- original and copy l) NHC is not bound to accept any bid or give reasons for its decisions 26
SECTION E: SCHEDULE OF REQUIREMENTS (as hereunder) GROUP LIFE SCHEME COVER FOR ALL STAFF (i) Name of cover - Group Life Assurance (GLS) (ii) Total number of lives - All staff (No.269) (iii) Death in Service Benefits - Three (3) times the annual Basic Pay (iv) Free Cover Limit - 5 Million (v) Last Expense benefit - 100,000 P.P (single premium) (vi) Free Critical illness of 30% sum assured maximum Kshs. 1 million per Life (vii) Effective cover date - 1 st January 2014 (viii) Disability benefit (PTD) - 3 times the annual Basic Pay (ix) Attached find schedule of Gross Salaries pay for all employees as at 30 th October 2013 as per the table below: NO DESCRIPTION AMOUNT 1. Gross monthly salaries pay for all staff 29,065,973.55 27
SECTION F : TENDER FORMS (i) Form of Tender To: Managing Director National Housing Corporation P. O. Box 30257-00100 NAIROBI. Gentlemen and/or Ladies: 1. Having examined the tender documents including Addenda Nos. {Insert numbers}, the receipt of which is hereby dully acknowledged, we, the undersigned, offer to Provide group life Insurance cover for Policy 2014 in conformity with the said tender documents for the sum of:...total tender amount in words} {Figur es}. Or such other sums as may be ascertained in accordance with the Schedule of prices attached herewith and made part of this tender. 2. We undertake, if our tender is accepted, to deliver the services in accordance with the delivery schedule specified in the Schedule of Requirements. 3. If our tender is accepted, we will obtain a professional indemnity cover with a limit of not less than Kshs.50, 000,000.00 for the due performance of the Contract, in the form prescribed by National Housing Corporation. 4. We agree to abide by this tender for a period of 90 days from the date fixed for tender opening of the instructions to tenderers, and it shall remain binding upon us and may be accepted at any time before the expiration of that period. 5. Until a formal Contract is prepared and executed, this tender, together with your written acceptance thereof and your notification of award, shall constitute a binding contract between us. 6. We understand that you are not bound to accept the lowest or any tender you may receive. 28
Dated this day of..2011.. (Signature) (In the capacity of) Duly authorised to sign tender for and on behalf of 29
ii) Tender Security Form/Bid Bond Whereas (name of the tenderer) (hereinafter called the the tenderer ) has submitted its tender dated.(date of submission of tender) for the Provision of group life Insurance cover Policy (2014) (hereinafter called the tender ).. KNOW ALL PEOPLE by these presents that We.of having our registered office at (hereinafter called the Bank ), are bound unto National Housing Corporation (hereinafter called the Corporation ) in the sum of.for which payment will and truly to be made to the said Corporation, the Bank binds itself, its successors, and assigns by these presents. Sealed with the common seal of the said Bank this.day of.20 THE CONDITIONS of this obligation are: 2. If the tenderer withdraws its tender during the period of tender validity specified by the tenderer on the tender form: or 3. If the tenderer, having been notified of the acceptance of its tender by the Corporation during the period of tender validity: (a) (b) Fails or refuses to execute the Contract Form, if required; or Fails or refuses to furnish the performance security, in accordance with the instructions to tenderers; We undertake to pay the Corporation up to the above amount upon receipt of its first written demand, without the Corporation having to substantiate its demand, provided that in its demand the Corporation will note that the amount claimed by it is due to it, owing to the occurrence of one or both of the two conditions, specifying the occurred condition or conditions. This guarantee will remain in force up to and including thirty (30) days after the period of tender validity, and any demand in respect thereof should reach the Bank not later than the above date... (Signature of the bank and seal 30
iii) CONTRACT FORM THIS AGREEMENT made the day of..20 Between..(name of Procurement entity) of.(country of Procurement entity) (hereinafter called the Corporation ) of the one part and.(name of tenderer) of..(city and country of tenderer) (Hereinafter called the tenderer) of the other part: WHEREAS the Corporation invited tenders for certain goods/services, viz and has accepted a tender by the tenderer for the Provision of group life Insurance Policy 2012-2013 in the sum of.(contract price in words and figures) (hereinafter called the Contract Price ). NOW THIS AGREEMENT WITNESSETH AS FOLLOWS: 1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to them in the conditions of contract referred to. 2. The following documents shall be deemed to form and be read and construed as part of this Agreement, Viz (a) the tender form and the Price Schedule submitted by the tenderer; (b) the Schedule of Requirements; (c) the Technical Specifications; (d) the General Conditions of Contract (e) the Special Conditions of Contract; and (f) the Corporation s Notification of Award. 3. In consideration of the payments to be made by the Corporation to the tender as hereinafter mentioned, the tenderer hereby covenants with the Corporation to provide group life Insurance cover Policy 2012-2013 and to remedy defects therein in conformity in all respects with the provisions of the Contract 4. The Corporation hereby covenants to pay the tenderer in consideration of the Provision of group life Insurance cover Policy 2012-2013 and to remedying of defects therein, the Contract Price or such other sum as may become payable under the provisions of the contract at the times and in the manner prescribed by the contract. 31
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance with their respective laws the day and year first above written. Signed, sealed, delivered by.the (for the Corporation) Signed, sealed, delivered by.the (for the tenderer in the presence of 32