Tender For Procurement of New Rebased Zambian Currency (Paper Banknotes)

ZAMBIA PUBLIC PROCUREMENT AUTHORITY (ZPPA) Bidding Documents TENDER NO. ZPPA/SP/002/2012 Tender For Procurement of New Rebased Zambian Currency (Paper Banknotes) Zambia Public Procurement Authority Red Cross House P.O. Box 31009 Lusaka 10101 ZAMBIA Tel: +260-1-250642 Fax: +260-1-250633 E-mail: tenders@ppa.org.zm Supply and Delivery of Paper Banknotes January 2012

Table of Contents Table of Contents Section I. Invitation for Bids (IFB)...1 Section II. Instructions to Bidders...3 Section III. Bid Data Sheet...15 Section IV. General Conditions of Contract...20 Section V. Special Conditions of Contract...32 Section VI. Schedule of Requirements...37 Section VII. Technical Specifications...39 Section VIII. Sample Forms...44 I Supply and Delivery of the Rebased Zambian Currency ( Paper Banknotes) January 2012

Introduction Introduction The Bank of Zambia is a statutory body that was established in 1964 by an Act of Parliament. Its Headquarters is located on Cairo Road, Lusaka, in Zambia. The Government of the Republic of Zambia approved the Bank of Zambia recommendation to rebase the currency on 23 rd January 2012. The Bank has one Regional Office located in Ndola. The Bank of Zambia is the Monetary Authority of the Republic of Zambia. (i) Legal Authority Under section 4 of the Bank of Zambia Act Number 43 of 1996, the Bank of Zambia is authorised to issue notes and coins to be legal tender in the Republic and to regulate all matters relating to currency in the Republic. In addition, the right to issue notes and coins in Zambia is vested exclusively in the Bank of Zambia under section 30 of the Bank of Zambia Act. In addition,the Bank regulates all matters relating to the currency of the Republic of Zambia. (ii) Currency Policies The Bank of Zambia has in place appropriate policies that govern the management of the national currency, the Kwacha and the Ngwee (the 100 th part of the Kwacha). The Bank endeavours to procure banknotes of acceptable quality after taking into account the costs and market innovations. The Bank of Zambia maintains a Clean Banknote Policy in its currency operations. (iii) Tender The Tender is for printing and supply of the Rebased Zambian Currency (paper banknotes) for a period of up to three years subject to contract. II

Section I Invitation Section I. Invitation for Bids (IFB) Date of issuance of IFB: 8 th February, 2012 IFB No. : ZPPA/SP/002/2012 Title of Tender. : Tender for Procurement of the Rebased Zambian Currency (Paper banknotes) 1. The Bank of Zambia has made a provision in its Operational Budget to acquire Kwacha banknotes which are Zambian legal tender. 2 The Zambia Public Procurement Authority on behalf of Bank of Zambia hereby invites sealed bids from the following suppliers of banknotes shortlisted by the Bank of Zambia for the supply and delivery of banknotes as listed and appropriately described in Sections VI and VII of the Bid Documents:- 2.1 De La Rue Currency, United Kingdom 2.2 Giesecke & Devrient, Germany 2.3 Orell Fussli Security Printing Limited, Switzerland 2.4 Francois Charles Aberthur Fuduciaire, France 2.5 South African Bank Note Company (Pty) Limited, South Africa; and 2.6 Goznak, Russia 3. A complete set of Bid Documents must be delivered to: The Director General Zambia Public Procurement Authority Red Cross House P.O. Box 31009 Lusaka 10101 ZAMBIA Tel: +260-1-250642 Fax: +260-1-250633 E-mail: tenders@ppa.org.zm on or before Friday 9 th March, 2012 at 14:30 hours local time and will be opened immediately in public in the presence of Bidders or their representatives who choose to attend. However all bids submitted via facsimile or e-mail will not be accepted. 4. All bids must be accompanied by a Bid Security of at least 2% of total bid value and must be delivered to the above mentioned office on or before Friday 9th March, 2012 at 14:30 hours local time. The Bid Security must be in the form of (a) a bank certified cheque or (b) a bank guarantee issued by a reputable bank acceptable to the Bank of Zambia. 5. Interested Bidders will be required to pay a non- refundable fee of US$2,500.00 (United States Dollar Two Thousand, Five Hundred) for the Tender document. Payment in this regard shall be in the form of cash, Bank certified cheque, Letter of Credit or any other payment method acceptable to the Bank of Zambia. 6. Prospective Bidders are invited to attend a Pre-Bid Conference on 20 th February, 2012 at 14:30 hours local time in the Procurement and Maintenance Services, Conference Room, 7 th Floor, Annex Building Lusaka. 1

Section I Invitation 7. Prospective Bidders are reminded to bring with them identification cards/information to facilitate their entry into the Bank. 8. A three - year contract for printing and delivering of banknotes to the Bank of Zambia shall be negotiated and entered into with the successful Bidder(s). Samuel Chibuye Director General Zambia Public Procurement Authority 2

Section II Instructions to Bidders Section II. Instructions to Bidders Table of Clauses A. Introduction... 5 1. Source of Funds... 5 2. Eligible Bidders... 5 3. Eligible Products and Services... 5 4. Cost of Bidding... 5 B. The Bidding Documents... 5 5. Content of Bidding Documents... 5 6. Clarification of Bidding Documents... 6 7. Addendum to Bidding Documents... 6 C. Preparation of Bids... 6 8. Language of Bids... 6 9. Documents Comprising the Bid... 7 10. Bid Prices 7 11. Bid Currencies... 7 12. Documents Establishing Products Eligibility and Conformity to Bidding Documents...... 8 13. Bid Security...... 8 14. Period of Validity of Bids... 9 D. Submission of Bids... 9 15. Format, Signing, Sealing and Marking of Bids... 9 16. Deadline for Submission of Bids... 9 17. Modification and Withdrawal of Bids... 10 E. Opening and Evaluation of Bids... 10 18. Opening of Bids by the Purchaser... 10 19. Clarification of Bids... 10 20. Preliminary Examination of Bids... 10 21. Conversion to Single Currency... 11 22. Evaluation and Comparison of Bids... 11 23. Contacting the Purchaser... 11 F. Post Qualification, Revalidation and Award of Contract... 12 24. Post Qualification... 12 25. Award Criteria... 12 26. Purchaser s Right to Vary Quantities at Time of Award... 12 27. Purchaser s Right to Accept any Bid and to Reject any or All Bids... 12 3 Supply and Delivery of the Rebased Zambian Currency ( Paper Banknotes) January 2012

Section II Instructions to bidder 28. Notification of Award of Contract... 12 29. Signing of Contract... 13 30. Performance Security... 13 31. Specimen Notes... 13 32. Corrupt or Fraudulent Practices... 13 4

Section II Instructions to bidder Instructions to Bidders (ITB) A. Introduction 1. Source of Funds 2. Eligible Bidders 1.1 Bank of Zambia Operating Budget 2.1 This Invitation for Bids (IFB) is open to all eligible suppliers of banknotes shortlisted by the Bank of Zambia. The shortlisted bidders are listed below; 2.1.1 De La Rue Currency, United Kingdom 2.1.2 Giesecke & Devrient, Germany 2.1.3 Orell Fussli Security Printing Limited, Switzerland 2.1.4 Francois Charles Aberthur Fuduciaire, France 2.1.5 South African Bank Note Company (Pty) Limited, South Africa; and 2.1.6 Goznak, Russia. 3. Eligible Products and Services 3.1 All banknotes and related services to be supplied under the contract shall have their origin in eligible source countries as defined in the bid data sheet. 3.2 For purposes of this tender, origin means the place where the banknotes are produced, or the place from which the services are supplied. The origin of products and services is distinct from the nationality of the Bidder. 3.3 All banknotes and services to be supplied under the contract must be eligible for export to the Purchaser s country. Bidders shall be responsible for obtaining all necessary export permits for the banknotes and services to be supplied. 4. Cost of Bidding 4.1 The Bidder shall bear all costs associated with the preparation and submission of its bids, and the Purchaser s named in the Bid Data Sheet, hereinafter referred to as the Purchaser, will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process. B. The Bidding Documents 5. Content of Bidding Documents 5.1 The banknotes required, bidding procedures, and contract terms are prescribed in the Bidding Documents. The Bidding Documents include the documents listed below and should be read in conjunction with any addendum issued in accordance with ITB Clause 7: Section I. Section II. Section III. Section IV. Section V. Section VI. Section VII. Section VIII Invitation for Bids (IFB) Instructions to Bidders (ITB) Bid Data Sheet General Conditions of Contract (GCC) Special Conditions of Contract (SCC) Schedule of Requirements Technical Specifications; and Sample Forms 5.2 Bidders are expected to examine all instructions, forms, terms, specifications and other information in the Bidding Documents. Failure to furnish all 5

Section II Instructions to bidder information required by the Bidding Documents or to submit a bid not substantially responsive to the Bidding Documents in every respect will be at the Bidder s risk and shall result in the rejection of its bid. 6. Clarification of Bidding Documents 6.1 Bidders requiring clarification of the Bidding Documents may petition the Purchaser in writing, by letter, e-mail or facsimile at the Purchaser s address indicated in the Bid Data Sheet. The Purchaser will respond in writing to any such petition received no later than Fourteen (14) days before the deadline for submission of bids prescribed in the Bid Data Sheet. The Purchaser s written response (with an explanation of the query but without identifying the source of the query) will be sent to all recipients of the Bidding Documents. 6.2 The Purchaser will organize and bidders may attend a bidders conference at the time and place indicated in the Bid Data Sheet. The purpose of the meeting will be to clarify issues and the Technical Specifications. Minutes of the conference, including the questions raised and responses given, will be sent to all recipients of the Bidding Documents. 7. Addendum to Bidding Documents 7.1 At any time prior to the deadline for submission of bids, the Purchaser, for any reason, whether at its own initiative or in response to a clarification requested by a Bidder, may modify the Bidding Documents by issuing written addenda. Any addenda to the Bidding Documents shall be part of the Bidding Documents. Modifications resulting from the pre-bid meeting shall be communicated exclusively through the issuance of a formal addendum and not through the minutes of the meeting. 7.2 All bidders will be notified of the addenda in writing by letter, facsimile or e- mail, which will be binding on them. 7.3 In order to allow bidders reasonable time to take any addenda into account in preparing their bids, the Purchaser, at its discretion, may extend, as necessary, the deadline for the submission of bids. C. Preparation of Bids 8. Language of Bids 8.1 Bids and all correspondence and documents relating to the bids exchanged by bidders and the Purchaser shall be written in English. Supporting documents and printed literature furnished by bidders may be in another language, provided they are accompanied by an accurate translation of the relevant passages in English, in which case, for purposes of interpretation of the bid, the English translation version shall govern. Information supplied in another language without the proper translation shall be rejected. 6

Section II Instructions to bidder 9. Documents Comprising the Bid 9.1 The Bid submitted by the Bidder shall comprise the following: (a) A Bid Form, Bid Documents and all Price Schedules in their respective envelopes duly signed by the Bidder must be completed in accordance with ITB Clauses 9.3, 10 and 11; (b) Documentary evidence established in accordance with ITB Clause 12; (c) Bid Security furnished in accordance with ITB Clause 13; (d) Financial Statements for each of the last 3 years as prescribed in the Bid Data Sheet; (e) Computer generated designs; (f) Letter of confirmation from bidders solicitors confirming no material litigations that may result into major financial liability; (g) A tabular provision of adequate response to mandatory requirements ; (h) A full description of the technical solution; and (i) Details of Agents and Consultants as prescribed in the Bid Data Sheet. 9.2 Each bid shall contain two separate envelopes clearly marked as follows: (a) Technical Solution (Envelope1) which should include all technical literature, brochures, references, financial statements, Warranties, aftersale support services, Power of Attorney, Bid Security, etc. (b) Financial Solution (Envelope2) which should contain only the bid price and any discounts. 9.3 Each bid shall contain only one Technical and Financial Solution in their respective envelopes. If a Bidder wishes to offer more than one solution, each must be submitted as a separate and complete bid with only one bid security required from each Bidder, and each such bid will be evaluated on its own merit. Any alternative proposals or other variations from the requirements of the Bidding Documents, including the mandatory technical specifications, will be at the Bidder s own risk, pursuant to ITB Clause 5.2. 9.4 The Bidder shall complete the Bid Form and the appropriate Price Schedule furnished in the Bidding Documents, indicating the banknotes to be supplied, a brief description of the banknotes, their country of origin, quantity, and prices. 10. Bid Prices 10.1 The Bidder shall indicate the prices for printing of the proposed banknotes using the tables provided under Bid Forms and Price Schedules in Section VIII (Sample Forms) in the Bidding Documents. The Bid Form and supplied schedules must be submitted together with the technical solution (Envelope1). 10.2 Prices indicated on the Price Schedules shall be quoted CIP Lusaka International Airport, as specified in the Bid Data Sheet. The terms CIP, EXW, CIF, etc. shall be governed by the rules prescribed in the current edition of INCOTERMS 2000 published by the International Chamber of Commerce, Paris. 10.3 Prices quoted by the Bidder shall be fixed for the three - year contract period as prescribed in the Bid Data Sheet and shall not be subject to increases on any account. Bids submitted with adjustable price quotations shall be rejected. 10.4 Any Bidder who fails to meet the criteria of the Preliminary and Technical evaluation, such bidder shall be disqualified and the financial solution (Envelope 2) shall be returned to the bidder unopened. 11. Bid Currencies 11.1 Prices for banknotes and services offered from outside the Purchaser s country shall be quoted in the United States dollar (US$), Euro and Pound Sterling. 7

Section II Instructions to bidder 12. Documents Establishing Products Eligibility and Conformity to Bidding Documents 12.1 The Bidder shall furnish, as part of its bid, documentary evidence of conformity of the banknotes to the Bidding Documents which may be in the form of written descriptions, literature, computer generated designs, certifications and client references, including: (a) a detailed description of the essential technical characteristics of the banknotes including design specific characteristics; (b) an item-by-item commentary on the Purchaser s Technical Specifications, demonstrating the substantial responsiveness of the proposed banknotes to those specifications, and any additional requirements specified in the Bid Data Sheet. 13. Bid Security 13.1 The Bidder shall furnish, as part of its bid, a Bid Security in the amount specified in the Bid Data Sheet and submitted together with the Technical Solution (Envelope1) clearly stating its validity period. 13.2 The bid security is required to protect the Purchaser against the risk of Bidder s conduct, which would warrant the security s forfeiture, as per ITB Clause 13.7. 13.3 The bid security shall be denominated in the currency of the bid or in a freely convertible currency, shall be valid for thirty (30) days beyond the validity of the bid and shall be in one of the following forms: (a) (b) A bank certified cheque or a Bank Guarantee issued by a reputable bank of the Bidder s choice, in the form provided in the Bidding Documents or another form acceptable to the Purchaser; A bank certified cheque issued by a reputable bank. 13.4 Any bid not secured in accordance with ITB Clauses 13.1 and 13.3 will be rejected by the Purchaser as non-responsive, pursuant to ITB Clause 20. 13.5 Unsuccessful bidders bid securities will be discharged or returned as promptly as possible but not later than thirty (30) days after the expiration of the period of bid validity prescribed by the Purchaser pursuant to ITB Clause 14. 13.6 The successful Bidder s bid security will be discharged upon the Bidder signing the contract, pursuant to ITB Clause 29, and furnishing the performance security, pursuant to ITB Clause 30. 13.7 The bid security may be forfeited: (a) if a Bidder: (i) (ii) withdraws its bid during the period of bid validity specified by the Bidder on the Bid Form; or does not accept the correction of errors pursuant to ITB Clause 20.2; or (b) in the case of a successful Bidder, if the Bidder fails: (i) to sign the contract in accordance with ITB Clause 29; or 8

Section II Instructions to bidder (ii) to furnish performance security in accordance with ITB Clause 30. 14. Period of Validity of Bids 14.1 Bids shall remain valid for the period specified in the Bid Data Sheet after the date of bid opening prescribed by the Purchaser, pursuant to ITB Clause 16. A bid valid for a shorter period shall be rejected by the Purchaser as nonresponsive. 14.2 In exceptional circumstances, the Purchaser may solicit Bidders consent to an extension of the period of validity. The request and the responses thereto shall be made in writing. The bid security provided under ITB Clause 13 shall also be suitably extended. A Bidder may refuse the request without forfeiting its bid security. A Bidder granting the request will not be required nor permitted to modify its bid, except as provided in ITB Clause. 14.3 If the award is delayed by a period exceeding one hundred and twenty (120) days beyond the expiry of the initial bid validity, the contract price will be adjusted by a factor specified in the request for extension. D. Submission of Bids 15. Format, Signing, Sealing and Marking of Bids 15.1 The Bidder shall prepare an original and the number of copies of the bid specified in the Bid Data Sheet, clearly marking each ORIGINAL BID or COPY OF BID, as appropriate for each of the envelopes i.e. Technical Solution (Envelope1) and Financial Solution (Envelope2). In the event of any discrepancy between them, the originals shall govern. 15.2 The original and copies of the bid shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to bind the Bidder to the contract, which authorization shall be corroborated by a written power of attorney accompanying the bid. The person or persons signing the bid shall initial all pages of the bid, except for unaltered printed literature. Any interlineation, erasures, or overwriting shall be valid only if initialled by the people signing the bid. 15.3 Bids shall be sealed in an Envelope bearing the name and return address of the Bidder, be addressed to the Purchaser, bear the contract names and the Invitation for Bids (IFB) title and number, all as indicated in the Bid Data Sheet, and marked: DO NOT OPEN BEFORE Friday 9th March, 2012 on the Technical Solution to be completed with the time and date specified in the Bid Data Sheet and ITB Clause 16.1. 15.4 If the envelopes are not sealed and marked as required by ITB Clauses 9.1 and 15.3, the Purchaser will assume no responsibility for the bid s misplacement or premature opening. 15.5 The tender should be comprehensive covering each category of Banknote denomination tendered for as specified in the Family Structure under Clause 1 of section VII and should include bromides of the proposed banknotes. The tender should be submitted in one original and six copies in a sealed cover quoting the given tender reference for each of the envelopes 1 and 2. 16. Deadline for Submission of Bids 16.1 Bids must be received by the Purchaser at the address specified in the Bid Data Sheet and ITB Clause 15.3 no later than the time and date specified in the Bid Data Sheet. Bids received after this deadline will be rejected and returned to the Bidder unopened. 16.2 The Purchaser may, at its discretion, extend this deadline for the submission 9

Section II Instructions to bidder of bids by amending the Bidding Documents in accordance with ITB Clause 7, in which case all rights and obligations of the Purchaser and Bidders previously subject to the deadline will thereafter be subject to the deadline as extended. 17. Modification and Withdrawal of Bids 17.1 The Bidder may modify, substitute or withdraw its bid after submission, provided that the modification, substitution or written notice of withdrawal of the bid is received by the Purchaser prior to the deadline prescribed for submission of bids. No bid may be modified or substituted after the deadline for submission of bids. 17.2 The Bidder s modification, substitution or withdrawal notice shall be prepared sealed and marked and dispatched in accordance with ITB Clause 15. A withdrawal notice may be hand delivered, sent by courier or by e-mail, or fax, which must be followed by a signed original, postmarked not later than the deadline for submission of bids. 17.3 No bid shall be withdrawn in the interval between the deadline for submission of bids and the expiration of period of bid validity specified by the Bidder on the Bid Form. Withdrawal of a bid during this interval shall result in the Bidder s forfeiture of its bid security pursuant to ITB Clause 13.7. E. Opening and Evaluation of Bids 18. Opening of Bids by the Purchaser 18.1 The Purchaser will open Envelope1 containing the technical solutions of all bids at the place and time specified in the Bid Data Sheet. Bidders or their representatives may attend the opening, and those who are present shall sign a register evidencing their attendance. 18.2 The bidders names, bid modifications or withdrawals, submission of Envelope2 containing the financial solutions, the presence or absence of requisite bid security and such other details as the Purchaser may consider appropriate, will be announced at the opening. No bid shall be rejected at bid Opening except for late bids which shall be returned unopened to the Bidder pursuant to ITB Clause 16.1. 18.3 Bids (and modifications sent pursuant to ITB Clause 17.2) that are not opened and read out at bid opening shall not be considered for further evaluation, irrespective of the circumstances. 18.4 The Purchaser will prepare Minutes of the bid opening. 19. Clarification of Bids 20. Preliminary Examination of Bids 19.1 During evaluation of bids, the Purchaser may, at its discretion, ask the Bidder for a clarification of its bid. The request for clarification and the response shall be in writing, and no change in the prices or substance of the bid shall be sought, offered or permitted. 20.1 The Purchaser will examine the bids 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 bids are generally in order. 20.2 Computational errors will be rectified on the following basis. (i) If there is a discrepancy between the unit price and the total price that is obtained by multiplying the unit price and quantity, the unit price shall prevail, and the total price shall be corrected. (ii) If there is a discrepancy between words and figures, the amount in words will prevail. (iii) If the Bidder does not accept the correction of any errors, its bid will be rejected, and its bid security shall 10

Section II Instructions to bidder be forfeited. 20.3 Prior to detailed evaluation, pursuant to ITB Clause 22, the Purchaser will determine whether each bid is substantially responsive to the Bidding Documents (including any amendments thereto). For purposes of the ITB, a substantially responsive bid is one which conforms to all the terms and conditions of the Bidding Documents, including all requirements of the mandatory technical specifications, without material deviations, as determined from the contents of bid itself, without recourse to extrinsic evidence. A material deviation is one, the acceptance of which would affect unfairly the competitive position of other bidders presenting substantially responsive bids. Deviations from, or objections or reservations to critical provisions, such as those concerning Bid Security (ITB Clause 13), Applicable Law (GCC Clause 10), and Taxes and Duties (GCC Clause 20), will be deemed to be a material deviation. 20.4 A bid that is not substantially responsive will be rejected by the Purchaser and may not subsequently be made responsive by the Bidder or Purchaser by correction of the non-conformity. 20.5 The Purchaser may waive any minor informality, non-conformity, or irregularity in a bid which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any Bidder. 21. Conversion to Single Currency 21.1 To facilitate evaluation and comparison of priced bids contained in Envelope 2, the Purchaser will convert all bid prices expressed in the various currencies in which they are payable to United States dollars (US$), at the ruling Bank of Zambia exchange rate for that day. 21.2 The currency selected for converting bid prices to a common base for the purpose of evaluation and the date and source of the base exchange rate are specified in the Bid Data Sheet. 22. Evaluation and Comparison of Bids 22.1 The Purchaser will evaluate and compare the bids that have been determined to be substantially responsive, pursuant to ITB Clause 20. 22.2 The Purchaser s evaluation of a bid will exclude and not take into account customs duties and other similar import taxes that will be payable on the banknotes offered from abroad. 22.3 The Purchaser s evaluation of the priced bids will take into account the following: a) Provision of at least 2% bid security of tender sum valid for 210 days from Tender closing date b) Satisfying Bank of Zambia Technical specifications as specified under the evaluation criteria in the Bid Data Sheet and the Schedule of Requirements and Technical Specifications in Section VI and Section VII respectively c) Acceptability of proposed designs d) Bid Price e) Delivery schedule f) Warranty Terms g) After sales support h) Bid validity period of 180 days i) Satisfactory performance on past contracts; and j) Other criteria as specified in the Bid Data Sheet. 23. Contacting the Purchaser 23.1 From the time of bid opening to the time of contract award, any bidder wishing to contact the Purchaser on any matter related to the bid, should do 11

Section II Instructions to bidder so in writing. 23.2 Any effort by the Bidder to influence the Purchaser in the process of evaluating bids and in decisions concerning award of the contract will result in the disqualification of the Bidder s bid. F. Post Qualification, Revalidation and Award of Contract 24. Post Qualification and Revalidation 24.1 Notwithstanding the Pre-qualification that the Purchaser may have undertaken, the Purchaser reserves the right to revalidate or verify the validity of the information initially submitted by the Bidder prior to the award of contract. 24.2 The revalidation alluded to under ITB Clause 24.1 will take into account the Bidder s financial, technical and production capabilities and capacity. It will be based upon an examination of the documentary evidence of the Bidder s qualifications and banknotes specifications submitted by the Bidder, pursuant to ITB Clause 12, as well as other information, as the Purchaser deems necessary and appropriate. This determination may include visits to bidders, visits and/or interviews with the Bidder s clients referenced in its bid, conduct performance soiling, durability and other relevant tests, and any other measures described in the Bid Data Sheet and/or the Technical Specifications. 24.3 Where a post-qualification revalidation is undertaken, an affirmative outcome will be a pre-requisite for award of the contract to the best-evaluated Bidder. A negative determination will result in rejection of the Bidder s bid, in which event the Purchaser will proceed to the next best evaluated bid to make a similar determination of that Bidder s capabilities to perform satisfactorily. 25. Award Criteria 25.1 Subject to ITB Clause 27, the Purchaser will award the contract to the Bidder whose bid has been determined to be substantially responsive and has been determined to have the best bid score, provided further that the Bidder is determined to be qualified to perform the contract satisfactorily, pursuant to ITB Clause 24. 26. Purchaser s Right to Vary Quantities at Time of Award 26.1 The Purchaser reserves the right at the time of contract award to increase or decrease, by the percentage indicated in the Bid Data Sheet, the quantity of banknotes originally specified in the Schedule of Requirements without any change in unit prices or other terms and conditions. 27. Purchaser s Right to Accept any Bid and to Reject any or All Bids 28. Notification of Award of Contract 27.1 The Purchaser reserves the right to accept or reject any or all bids, or to annul the bidding process or any part thereof at any time prior to contract award, without thereby incurring any liability to the affected Bidder or bidders. 28.1 Prior to the expiration of the period of bid validity, the Purchaser will notify the successful Bidder in writing by registered letter, or by cable to be subsequently confirmed in writing by registered letter, that its bid has been accepted. 28.2 The notification of award will not constitute the formation of the contract. 28.3 Upon the successful Bidder s furnishing of the performance security pursuant to ITB Clause 30, the Purchaser will promptly notify the name of the 12

Section II Instructions to bidder winning Bidder to each unsuccessful Bidder and will discharge its bid security, pursuant to ITB Clause 13. 28.4 After notification of award, all unsuccessful Bidders will be furnished with grounds upon which their bids were not successful.. 29. Signing of Contract 29.1 At the same time as the Purchaser notifies the successful Bidder that its bid has been accepted the Purchaser will send the Bidder the Contract including all attachments and appendices thereto and all documents incorporated by reference therein. 29.2 Within fifteen (15) days of receipt of the Contract Form, the successful Bidder shall sign and date the contract and return it to the Purchaser. By mutual agreement, the contract signature date may be postponed by up to fifteen (15) days. 30. Performance Security 30.1 Within fifteen (15) days of the receipt of notification of award from the Purchaser, the successful Bidder shall furnish the performance security in accordance with the Conditions of Contract, using the Performance Security Form provided in the Bidding Documents or another form acceptable to the Purchaser. 30.2 Failure of the successful Bidder to comply with the requirements of ITB Clause 29 or ITB Clause 30.1 shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid security, in which event the Purchaser may make the award to the next highest evaluated Bidder or call for new bids. 31. Specimen Notes 31.1 Two Specimen notes will be made available to the bidders for banknotes that will be used as the basis for printing. 31.2. The Supplier shall be required to return the specimen notes to the Purchaser after the successful bidder(s) has been awarded the contract(s). 32. Corrupt or Fraudulent Practices 32.1 The Purchaser requires that Bidders/Suppliers observe the highest standard of ethics during the procurement and execution of this contract. In pursuance of this policy, the Purchaser: (a) defines, for the purposes of this provision, the terms set forth below as follows: (i) (ii) corrupt practice means the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence the action of a public officer in the procurement process or in contract execution; and fraudulent practice means a misrepresentation or omission of facts in order to influence a procurement process or the execution of a contract to the detriment of the Purchaser, and includes collusive practice among Bidders (prior to or after bid submission) designed to establish bid prices at artificial noncompetitive levels and to deprive the Purchaser of the benefits of free and open competition; (b) (c) will reject a proposal for award if it determines that the Bidder recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question; will declare a firm ineligible, either indefinitely or for a stated period 13

Section II Instructions to bidder of time, to be awarded a Purchaser-financed contract if it at any time determines that the firm has engaged in corrupt or fraudulent practices in competing for, or in executing, a Purchaser-financed contract. 14

Section III Bid Data Sheet Section III. Bid Data Sheet The following specific data for the banknotes and services to be procured shall complement, supplement, or amend the provisions in the Instructions to Bidders (ITB). Whenever there is a conflict, the provisions herein shall prevail over those in the ITB. INTRODUCTION ITB 1.1 Source of Funds: This Tender shall be financed from the Bank of Zambia s 2012, 2013 and 2014 Operating Budgets. ITB 2.1 Qualification requirements for bidders: Established suppliers of banknotes shortlisted by the Bank of Zambia ITB 3.1 Eligible source countries Germany South Africa England/ Malta Switzerland France Russia ITB 4.1 Name of Purchaser: Bank of Zambia ITB 6.1 THE BIDDING DOCUMENT All requests for clarifications pertaining to the Bidding Document shall be in writing and sent to the Purchaser s address below: The Director General Zambia Public Procurement Authority Red Cross House P.O. Box 31009 Lusaka 10101 ZAMBIA ITB 6.2 Tel: +260-1-250642 Fax: +260-1-250633 E-mail: tenders@ppa.org.zm A Bidders conference will be held on Monday, 20 th February, 2012 at 14:00hrs local time in the Bank of Zambia Conference Room located on the 7 th Floor of the Annex Building, Bank of Zambia Head Office on Bank Square Cairo Road, Lusaka, Zambia PREPARATION AND SUBMISSION OF BIDS ITB 8.1 Language of Bid: ENGLISH ITB 9.1 Documents Comprising the bid: In addition to the information in ITB 9.1, Bidders are required to provide the following information:- (d) Audited financial statements for the last three years preceding the date of submission of the bid. (f) Letter of confirmation from bidders solicitors confirming no material litigations that may result into financial liability. The Bidder shall provide accurate information about any litigation or arbitration resulting from contracts completed or ongoing under its execution over the last two years. A consistent history of awards against the Bidder or any partner of a joint venture shall result in 15

Section III Bid Data Sheet disqualification of the Bid. (i) Bidders who wish to engage Agents and Consultants for this Tender must disclose full details i.e. names, contact addresses,and the role that the consultant will play ITB 9.3 No alternative Bids allowed ITB 10.2 Prices quoted shall be CIP Kenneth Kaunda International Airport, Zambia. ITB 10.3 (a) The price shall be fixed for the three year contract period ITB 10.4 The Bank shall reserve the right to open any Bid that shall not bear a return address to facilitate return of the Financial Proposal ITB 12.1 (b) Bidders are required to indicate their compliance to the Bank s specifications on an item-by-item basis. Failure to indicate compliance on an item by item basis to the Bank s specifications will result in the Bid being non-responsive, and therefore, disqualified. ITB 13.1 The amount of Bid security required is: At least 2% of Total Bid sum valid for 210 days from Tender closing date. The Bid Security must be put in the Technical Solution (envelope 1). ITB 14.1 The bid validity period shall be: 180 Days ITB 14.3 Not Applicable ITB 15.1 ITB 15.3 ITB 16.1 Required number of copies of the bid: One (1) original and Six (6) copies for each category Envelope1 and Envelope2. The IFB title and number are: IFB No. : ZPPA/SP/002/2012 Title of Tender. : Tender for Procurement of Rebased Zambia Currency (Paper banknotes) The address for bid submission is: The Director General Zambia Public Procurement Authority Red Cross House P.O. Box 31009 Lusaka 10101 ZAMBIA ITB 18.1 Tel: +260-1-250642 Fax: +260-1-250633 E-mail: tenders@ppa.org.zm Deadline for bid submission: Friday 9th March, 2012 SUBMISSION OF BIDS Date, time, and place for bid opening are: Date: Friday 9th March, 2012 Time: 14:00 hours, local time Place: Zambia Public Procurement Authority Zambia Public Procurement Authority Red Cross House, 2 nd Floor P.O. Box 31009 Lusaka 10101 ZAMBIA 16

Section III Bid Data Sheet BID PRICES AND CURRENCY ITB 21.2 For purposes of bid evaluation all such currencies will be converted to US dollars as at 24 th February, 2012. 17

Section III Bid Data Sheet ITB 22.3 (j) Criteria for Bid Evaluation. BID EVALUATION Preliminary Evaluation Bid Form (signed by the bidder) Bid validity period of at least 180 days from the date of tender closing At least 2% Bid security of the tender sum Bid security validity of at least 210 days Bids should be denominated in US Dollar or any freely convertible currency. Written Power of Attorney issued by and signed by any authorised person (s) such as Managing Director. Technical Evaluation Technical Evaluation shall be conducted in two stages as detailed below:- Stage 1 Banknote Printing Experience The Bidder shall provide evidence that (a) (b) (c) It has been actively engaged in the banknote printing business for at least five (5) years immediately prior to the date of submission of bids, in the role of prime contractor. Indicate firm s capacity to adapt and come up with origination materials. It has successfully completed or substantially completed at least five (5) contracts of a nature and complexity, and requiring similar technology to the proposed contract, within the period of five (5) years immediately prior to the date of submission of bids. The works/goods should have been executed by the Bidder as a prime contractor. Personnel Capabilities Total Work/Business Minimum Required Position Experience (years) Experience In similar Work (years) 1.Technical Director 5 2.Production Director 5 3.Marketing Director 3 4.Sales Director 3 5.Finance Director 3 18

Section III Bid Data Sheet Bidders are further required to indicate whether each of the key staff indicated above is on full or part time basis. Plant and Production capacity 1. Annual Production capacity (Volume) 2. Total plant capacity 3. Capacity already taken up by other clients 4. Available capacity for this Tender 5. Maximum order capacity the company can print in six months given originating materials. 6. Maximum order capacity the company can print in six months making its own originating materials. 7. Minimum order capacity the company can print in six months given originating materials. 8. Minimum order capacity the company can print in six months making its own originating materials. Stage 2 Satisfying ALL the Bank of Zambia Technical specifications as indicated in Section VII. Commercial Evaluation* Bid Price *Please note that the delivery schedules and payment terms shall be agreed by the parties to the contract at the time of signing the contract(s). CONTRACT AWARD ITB 25 Award of contract shall be by, ITB 26 (i) placement of a written and signed contract; or (ii) issue of a letter of bid acceptance, which shall be confirmed by the written contract Percentage for quantity increase or decrease of contract awarded by the purchaser: Fifteen (15) per cent. 19

Section IV General Conditions Of Contract Section IV. General Conditions of Contract A. Contract and Interpretation... 21 1. Definitions... 21 2. Application... 22 3. Country of Origin... 22 4. Standards... 22 5. Contract Amendments... 22 6 Subcontracts and Assignments... 22 7. Resolution of Disputes... 22 8. Governing Language... 23 9. Applicable Law... 23 10. Notices..... 23 11. Taxes and Duties... 23 12. Supplier s Bid and Secondary Contractual Agreements... 23 B. Confidentiality and Property Rights... 23 13. Use of Contract Documents and Information... 23 C. Payments, Guarantees and Liabilities... 24 14. Performance Security... 24 15. Payment..... 24 16. Prices... 24 17. Warranty..... 24 18. Delays in the Supplier s Performance... 25 19. Liquidated Damages... 26 20. Termination for Default... 26 21. Termination for Insolvency... 26 22. Termination for Convenience... 26 23. Force Majeure... 27 24. Limitation of Liability... 27 25. Indemnity.... 27 D. Contract Execution... 28 26. Packaging... 28 27. Delivery and Documents... 28 28. Insurance... 29 29. Transportation... 29 30. Implementation Services... 29 31. Inspections and Tests... 29 32. Change Orders... 29 33. Purchaser s Obligations... 30 34. Supplier Obligations... 30 20

Section IV General Conditions Of Contract General Conditions of Contract A. Contract and Interpretation 1. Definitions 1.1 In this Contract unless the context otherwise requires, the terms shall be interpreted as follows: (a) (b) (c) (d) (e) (f) (g) Acceptance means the Purchaser s written certification following delivery that delivery of the quantities ordered has been effected or following Acceptance testing, that the banknotes (or a specific part thereof) have been successfully tested. banknotes, means all of the banknotes specified in Section VII, together with the Services to be delivered by the Supplier under the Contract. Contract means the agreement entered into between the Purchaser and the Supplier, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. Contract Price means the price payable to the Supplier under the Contract for the full and proper performance of all its contractual obligations. Day means calendar day. Delivery means transfer of possession by the Supplier to the Purchaser of any or part of banknotes ordered under the agreement. Effective Date means the date following contract signing that the Contract enters into full force and effect with respect to the scheduled delivery, as specified in the Schedule of Requirements, and upon fulfilment of any and all additional conditions specified in the Special Conditions of Contract (SCC). (h) (i) (j) (k) (l) (m) (n) GCC means these General Conditions of Contract in Section IV of the Bid Document. Intellectual Property Rights means the rights which result from intellectual activity in the industrial, scientific, literary and artistic fields, including but without limitation to all copyrights, designs, patents and trademarks and other intellectual property as defined and regulated by Zambian legislation and any other treaty to which Zambia is a signatory. Purchaser means Bank of Zambia. Purchaser s country is Zambia. SCC means the Special Conditions of Contract in Section V of the Bid Document. Services means those services associated with the supply of the banknotes, as defined in the Contract. Subcontractor means any entity that is directly or indirectly subcontracted by the Supplier to deliver any Services or supply any 21

Section IV General Conditions Of Contract products, including supply of products as a third party producer. (o) (p) Supplier means the company supplying the banknotes under this Contract. Supplier s Representative means the duly authorized representative of the Supplier, approved by the Purchaser to manage and be responsible for the Supplier s performance under the Contract in accordance with GCC Clause 34.4. 2. Application 2.1 These General Conditions shall apply to the extent that provisions of other parts of the Contract do not supersede them. 3. Country of Origin 3.1 For purposes of this Tender, origin means the place where the banknotes were produced or from which the Services are supplied. Banknotes are produced when, through manufacturing, processing, software development or substantial and major assembly or integration of components, a commercially recognized product results that is substantially different in basic characteristics or in purpose or utility from its components. The origin of banknotes and Services is distinct from the nationality of the Supplier. 4. Standards 4.1 The banknotes supplied under this Contract shall conform to the standards mentioned in the Technical Specifications, and, when no applicable standard is mentioned, the banknotes shall conform to industry best practices. 5. Contract Amendments 6 Subcontracts and Assignments 7. Resolution of Disputes 5.1 No variation in or modification of the terms of the Contract shall be made except by written amendment signed by the parties duly authorized representatives. 6.1 The Supplier shall notify the Purchaser in writing of its intent to award subcontracts not already specified in the Bid, or change subcontractors under this Contract. Such awards and changes must comply with GCC Clause 3 and shall require the Purchaser s written consent prior to execution thereof. Such notification, in the original bid or later and the Purchaser s consent or objection thereto, shall not relieve the Supplier from any liability or obligation under the Contract. The Supplier shall not assign, in whole or in part, its obligations to perform or right to receive payments under this Contract, except with the Purchaser s prior written consent. 7.1 The Purchaser and the Supplier 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. 7.2 If, after thirty (30) days from the commencement of such informal negotiations, the Purchaser and the Supplier have been unable to resolve amicably a Contract dispute, either party may give notice to the other party of its intention to commence arbitration, as hereinafter provided, as to the matter in dispute, and no arbitration in respect of this matter may be commenced unless such notice is given. 7.2.1 Any dispute or difference in respect of which a notice of intention to commence arbitration has been given in accordance with this Clause shall be finally settled by arbitration. Arbitration may be commenced prior to or after delivery of the banknotes. 7.2.2 Arbitration proceedings shall be conducted in accordance with the rules of procedure specified in the SCC. 22

Section IV General Conditions Of Contract 8. Governing Language 9. Applicable Law 8.1 The Contract shall be written in English. The English version of the Contract shall govern the interpretation of the Contract. All correspondence and other documents pertaining to the Contract which are exchanged by the parties shall be written in English 9.1 The Contract shall be interpreted in accordance with the Laws of Zambia. 10. Notices 10.1 Any notice given by one party to the other pursuant to this Contract shall be sent to the other party in writing by letter, facsimile or e-mail and confirmed in writing to the other party s address specified in SCC. 10.2 A notice shall be effective upon service thereof or on the notice s effective date, whichever is later. 10.3 All notices served under this Clause shall be deemed as served at the time of delivery if personally delivered and if sent by fax upon completion of dispatch. The transmission slip shall suffice as evidence of dispatch of notice by facsimile. 11. Taxes and Duties 12. Supplier s Bid and Secondary Contractual Agreements 11.1 The Supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other such levies imposed outside the Purchaser s country. 12.1 The Tender Document, addendums and supplier s bid shall form part of the contract. 12.2 Any additional contractual or liability agreements may be attached to the SCC by mutual, written agreement of the Purchaser and the Supplier. If there is any conflict with the GCC or SCC Clauses or the technical specifications, the SCC Clauses shall prevail in each and every instance. B. Confidentiality and Property Rights 13. Use of Contract Documents and Information 13.1 The Supplier shall not, save as provided in Clause 13.5, disclose the Contract, or any provision thereof, or any specification or information furnished by or on behalf of the Purchaser in connection therewith, to any person other than a person employed by the Supplier in the performance of the Contract. Disclosure to any such employed person shall be made in confidence and shall extend only so far, as may be necessary for purposes of such performance. 13.2 Any document, other than the Contract itself, enumerated in GCC Clause 13.1 shall remain the property of the Purchaser and all copies thereof shall be returned to the Purchaser on termination of the Contract, if so required by the Purchaser. 13.3 The Supplier shall not, without the Purchaser s prior written consent, make use of any document or information referred in GCC Clause 13.1 except for purposes of performing the Contract. 13.4 The Purchaser shall not, without the Supplier s prior written consent, disclose any documents, data or other information furnished by the Supplier in connection with the Contract, and clearly identified in advance by the Supplier as being confidential, to parties not directly involved in the project(s) covered by the Contract, pursuant to GCC Clause 13.5. 13.5 The provisions of GCC Clause 13 shall survive termination of the Contract and shall not apply to information which: 23