Outsourcing of Catering Services

Outsourcing of Catering Services Pakistan International Airlines (PIA) intends to outsource catering services for all outbound London Heathrow flights ex-pakistan (Karachi, Lahore, Islamabad airports) and return. Proposals are invited from well reputed organizations for the supply of high quality premium class meals (complete end-toend solution) for ex-pakistan London Heathrow and return flights. Interested companies are required to submit their sealed proposals on or before July 11, 2016 in Tender Box, placed at main entrance of Procurement & Logistics building, latest by 1030 hours (PST). Tenders will be opened on the same day at 1100 hours in the presence of bidders who care to attend. For details of the tender, please visit www.piac.com.pk and www.ppra.org.pk. Director Procurement & Logistics Procurement & Logistics Department, PIA Head Office, JIAP, Karachi. Tel: +92 21 9904 4216 Fax: +92 21 3457 0120 Email: khijhpk@piac.aero

Hiring of Catering Services Tender No. DPL/Outsourcing of Catering Service/16 M/s --------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- Dear Sirs, Pakistan International Airlines (PIA) intends to outsource catering services for all outbound London Heathrow flights ex-pakistan (Karachi, Lahore, Islamabad airports) and return. Proposals are invited from well reputed organizations for the supply of high quality premium class meals (complete end-toend solution) for ex-pakistan London Heathrow and return flights. Contract will be awarded for the period of three (03) years to the technically qualified bidder ; Also with the induction of new aircraft in PIA fleet and introduction of new routes, the scope of the contract will be enhanced automatically and same services on the new routes will be required as contracted for London Heathrow Flights. Interested companies are required to submit their sealed proposals on or before July 11, 2016 in Tender Box, placed at main entrance of Procurement & Logistics building, latest by 1030 hours (PST). Tenders will be opened on the same day at 1100 hours in the presence of bidders who care to attend. Currently the corporation operates flights for London Heathrow as per the following detail: Flight to London Heathrow per week Karachi Station Lahore Station Islamabad Station Total 3 3 4 10

With outsourcing of catering services (end-to-end complete solution), PIA aims: a) to enhance the quality of the meals offered, b) to bring in efficiency in the service of handling to passengers, c) to improve the general hygiene standards under which it operates. Only those caterers need apply who provide complete solution to PIA which include but not limited to provision of high quality meal, crockery, cutlery, cabin setting services, meal tray, anti skid tray mat, amenity items etc and can keep the sanctity of all Food Services within the Islamic code (menu will be provided on request). WHO SHOULD RESPOND The prospective parties must preferably be internationally reputed Airline Caterers with following credentials: Caterer must have a large and reputed operation / network with its own production and handling facilities that can be inspected. Carry documented certified experience in the preparation of Halal Food and must have relevant expertise with its production systems and environment. Caterer must have experience in the production of Oriental and Continental cuisines. Caterer must have a minimum of two international reputed airlines, amongst others, as their clients for regular meals uplift. Caterer must have a current minimum annual turnover of PKR 100 M. All interested parties are required to dispatch their sealed proposal with tender reference number on top left corner of the addressing envelope, along with all supporting details to: Director Procurement and Logistics PIA Head Office Building, Quaid-e-Azam International Airport Karachi Pakistan. Phone: 021-9904-4423/ 021-9904-4377. Fax: 021-3457-3556 Email: khijhpk@piac.aero

PIA reserves the right to accept / reject any or all proposal or extend the date of submission. Key Objectives PIA is issuing this tender, in order to determine and identify the potential bidder, who in the sole opinion of PIA has proposed terms, which are most advantageous to PIA for the purposes of providing high quality Premium Class Meals, with emphasis on: (i) (ii) Culinary expertise and excellence Culinary innovation (iii) Presentation and appearance of meals (iv) (v) (vi) Capability to produce local and international meals Functionality and flexibility Can fulfill the requirements of PIA (vii) High standards of services, safety and security (viii) Production to international hygiene standards (ix) Capable to meet airline catering industry challenge (x) Able to train cabin crew on preparation and serving the Premium Class Meals (xi) High level of service for PIA (xii) Having already similar business activities in the Islamic Republic of Pakistan for domestic and international airlines Business Objectives of PIA PIA s management would like to realize the following business objectives through the supply of Premium Class Meals by a Brand Name: (I) (II) (III) (IV) Serving to its passengers high quality Premium Class Meals; Brand name for the Premium Class Meals; Culinary expertise and innovation for Premium Class Meals Appearance and taste of high quality for Premium Class Meals;

(V) (VI) Crew training on serving and platting of Premium Class Meals; Full compliance of international hygiene standards by preparing Premium Class; Scope of providing Premium Class Meals to PIA The scope of providing Premium Class Meals shall include the production of meals, set-up of Premium Class meals, delivery of the Premium Class meals to the respective flights, storing of equipment, washing of the Premium Class equipment, description and heating instruction for the crew, training of the crew in preparing / plating of the Premium Class meals, as it will be detailed in the Catering Agreement with PIA. (i) (ii) (iii) (iv) (v) (vi) Preparation of high quality food for Premium Class meal Preparation and assembly of flight meals for Premium Class, Storage of catering equipment and supplies for Premium Class, Laundry services for in flight linens of Premium Class (if any), Handling of catering loads and cabin supplies onto and from aircraft for Premium Class and Storage of bonded items for airlines for Premium Class Service Standards The successful Bidder shall be responsible for providing the Services in accordance with international service standards. Arms-Length Basis The successful Bidder shall provide the Services in a competitive manner, under a contract, which shall be on an arms-length basis.

QUALIFICATION MATRIX Basic Eligibility Criteria Each Bidder shall satisfy the following criteria ( Basic Eligibility Criteria ): (i) there must be no pending, active, or previous legal action by/against such member that may prevent their participation in the Bid Process or prevent them from fulfilling their respective obligations as specified and/ or as required in/under this RFP, (ii) it is not in breach of any of its contractual obligations with PIA, (ii) it has not have committed a default under the contract/ arrangement with PIA, and (iii) it shall have submitted the following within the time prescribed in Bid Process Schedule: (a) the Form of Acknowledgement as per annexure, (b) the Letter of Confidentiality as per annexure, and Provided that the decision of PIA as to whether a Bidder satisfies the Basic Eligibility Criteria shall be final. Technical Eligibility Criteria (as per Annexure) Each Bidder shall satisfy the following criteria ( Technical Eligibility Criteria ): (i) (ii) (iii) (iv) (v) (vi) (vii) Yearly meal production volume of not less than 20,000 Premium Class meals monthly in a period of 2 (two) years immediately preceding the date of issue of the RFP Serving at least 20 (twenty) international airlines at 5 (five) different International Airports And at least 10 (ten) years of experience in the industry and proven track record for such projects International brand reputation Know-how in doing similar business in Pakistan Proven track record in culinary expertise and innovation Caterer must have a large and reputed operation / network with its own production and handling facilities that can be inspected.

(viii) Carry documented certified experience in the preparation of Halal Food and must have relevant expertise with its production systems and environment. (ix) (x) Caterer must have experience in the production of Oriental and Continental cuisines. Caterer must have a minimum of two international reputed airlines, amongst others, as their clients for regular meals uplift. (xi) Caterer must have a current minimum annual turnover of PKR 100 M. Disqualifications Save and except PIA s right to disqualify any Bidder as otherwise provided in this tender, PIA shall have the right, in its sole discretion, to disqualify any Bidder and reject its Proposal including but not limited to any one or more of the following grounds: (i) (ii) (iii) (iv) (v) The Proposal is not accompanied by documents and annexures required to be submitted in accordance with this RFP. The Qualification Documents, Technical Proposal and/or Commercial Proposal is/are not in the prescribed manner/format. Failure to comply with the requirements of the RFP or the Proposal being non-responsive to the requirements of the RFP. If the Proposal is not signed, sealed and marked as stipulated in the RFP or does not contain all the information as requested in the RFP or in the format as specified in the RFP. Any Proposal that is received after the Bid Close Time has elapsed and shall be summarily rejected by PIA. SUBMISSION OF TENDER 1. You are required to send sealed proposals addressed to Director Procurement and logistics, PIA Procurement & Logistics Building JIAP Karachi latest by July 11, 2016 latest by 1030 hrs (PST). The proposals may be dropped in the tender box marked as Tender Box Commercial Purchases placed at the entrance of the PIA Procurement & Logistics Building on the specified date. You may also send your tenders through registered A/D mail addressed to Director Procurement and Logistics,

which must reach before the closing date and time mentioned above. Tenders will be opened on the same day at 1100 hours (PST) the same day in the presence of bidders who care to attend. 2. Proposals received after stipulated date & time shall not be considered. The PIA will not be responsible for postal delays. 3. Participants are required to submit a Pay Order of Rs. 2000/- (Non-Refundable) as tender fees along with the Proposal. INSTRUCTIONS TO BIDDER PREPARATION OF TENDER Single Stage Two Envelope Basis The proposals submitted shall comprise of a single package containing Technical Proposal and Financial Proposal along with all the relevant documents. On the given tender opening date only technical proposal will be opened in the presence of available bidders who care to attend the tender proceedings, financial proposal shall be opened after evaluation of the sample by PIA Evaluation Committee. PREPARATION OF PROPOSAL: In technical proposal, please provide all the available Technical details offered by company, supported with but not limited to corporate profile, copies of certifications, technical literature, experience, brochure, drawings and pictures, client list details etc. and financial proposal will contain price only. PIA shall have the right to visit the facility / premises of the bidders or call for any further documents to establish the capability of firms to undertake this order/contract. PIA s decision in this regards shall be final will not be questioned in any court. BIDDERS MUST: Be registered with Tax Authorities (applicable to local bidding attached registration certificate)

Affix the company seal on all tender documents. mention clearly tender reference on top right corner of properly sealed envelope, bearing company s stamp. PIA will have the right to visit the facility / premises of the bidders or call for any further documents to establish the capability of firms to undertake this order/contract. PIA s decision in this regards shall be final will not be questioned in any court. QUALIFICATION CRITERIA: Evaluation will be based on meeting the minimum requirements to pass in the evaluation criteria and qualification will be based on the marks obtained by the organization. PIAC reserves the right to waive minor deviations if they do not materially affect the capability of an applicant to perform the contract. Failure to provide information that is essential for effective evaluation of the applicant s qualifications or to provide timely clarification or sub substantiation of the information supplied may result in the applicant s disqualification. Litigation history of the organization should provide accurate information on any litigation or arbitration resulting from contracts completed or under its execution over the last five years. A consistent history of awards against the applicant or any partner may result in disqualification. The procuring agency s employees, committee members, board members and their relative (spouse and children) are not eligible to participate in the tender. EVALUATION OF APPLICATIONS The procuring entity will examine the applications to determine whether they are complete and generally in order to be determined as sufficiently responsive. The procuring entity will carry out the evaluation of the Applications, on the basis of their responsiveness to the requirements, applying the evaluation criteria and point system specified therein.

ACCEPTANCE OF TENDER PIA do not pledge itself to accept the tender and reserve the right to accept or reject any or all tenders / quotations, divide business among more than one supplier or accept the tenders at rates on lowest individual items or extend the date of opening in line with PPRA rules. Director Procurement & Logistics Address: Procurement and Logistics Department, PIA Head Office, Karachi. Phone: 0092-021 9904 4216 Fax : 0092-021-34570120 Email: khijhpk@piac.aero

TECHNICAL PROPOSAL I. Business and Corporate Overview a. Background Information on the Bidder The Technical Proposal shall provide the following information to evidence the Bidder s qualifications to deliver the services sought under this RFP. In the event of a consortium, this information shall be provided for each member of the consortium. In the event of a holding/group, this information shall be provided only for the holding/group. Applicant s registered name: Applicant s Information Applicant s country of constitution Applicant s year of constitution Applicant s registered address in the country of constitution Description of firm organization and activity Year of Service Local Infrastructure Applicant s authorized representative (name, address, telephone numbers, fax numbers, e-mail address) The Bidders shall provide brochures, financial statements and printed documentation to support the information provided above. b. Profile of Bidder which shall contain the following aspects: 1) A write-up on when the company started operations; 2) A description of how the operations have grown since inception (whether through acquisitions- indicate what companies were acquired and the competencies gained organically); 3) A brief, descriptive statement indicating the Bidder s background qualifications and solution to deliver the services and expertise sought under this RFP; 4) The brand and brand recognition of the Bidder. 5) The strategic value and benefit for PIA to be associated with the Bidder. 6) Know-how of doing similar (past or current) business in Pakistan. 7) Contact person for the Bidder details shall include the name, designation, postal address, telephone and fax numbers and e-mail IDs.

c. Board Member of the Company and Management Executive Name of the Board Member Age & Educational Qualification Whether executive or non-executive Citizen of (country) A. AVERAGE PREMIUM CLASS MEAL PRODCUTION OVER THE PAST TWO (2) YEARS Location A Location B Location C Location D Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Location A Location B Location C Location D Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total B. AIRLINE CUSTOMERS Customer Location Since

II. Financial Capacity The Financial Capacity of the Bidder Financial and Business Performance for the past 2 (two) years should be furnished in Spread sheet named Financial Capacity III. Food Quality, Safety and Hygiene The Bidder shall be required to follow the IFCA/IFSA World Safety Food Guidelines Feb 2003 and shall submit information pertaining to the following factors and how it proposes to address the same: 1. Hazard Analysis and Critical Control Points (HACCP) 2. Food safety process flow 3. Hazardous meal ingredients 4. Supplier Audits 5. Stock rotation/date coding 6. Final cooking temperatures 7. Aircraft delay policy 8. Product recall procedure 9. Foreign objects 10. Employee Health and Hygiene

EVALUATION CRITERIA Maximum Marks : 100 Qualifying marks : 75 The Proposals shall be analyzed and evaluated in the manner set out in this Annexure on the following criteria but not necessarily in the same order: (I) Conformation to the Qualification Matrix. (20 Marks) (II) Strategic value of the Bidder for PIA in In-flight Catering; (10 Marks) (III) International brand reputation of the Bidder; (10 Marks) (IV) Ideas, concepts, innovation and culinary expertise to produce high quality Premium Class meals for PIA; (15 Marks) (V) Financial strength and resources; (15 Marks) (VI) Know-how of doing similar business in Pakistan; (10 Marks) (VII) Commercial Proposal submitted by the Bidder; (20 Marks)

FORM OF ACKNOWLEDGEMENT (To be retyped on the Bidder s Letterhead)..... Dear Sir, Request for Proposal Supplying of high quality Premium Class meals for PIA: Subject to as submitted at paragraph 2 below, we acknowledge: (i) The receipt of the above-captioned RFP with its annexures, which we have perused in its entirety, (ii) The RFP is complete and in legible form, subject to, and (iii) The following pages are missing or are not legible: S. No. Section (RFP/Annexure) Page No. (iv) The following discrepancies have been found and may be suitably rectified: S. No. Section (RFP/Annexure) Page No. Discrepancies Suggestions Yours faithfully, For and on behalf of: [Signature of the Bidder] Name Status Address Tel no (Office) Witness:

FORM OF LETTER OF CONFIDENTIALITY ON THE LETTERHEAD OF THE BIDDER/ LEAD MEMBER Date:.. Project: Supplying of high quality Premium Class meals for PIA The undersigned ( Applicant ) acknowledges that the RFP issued to the Applicant, is confidential to the Applicant and the Applicant hereby undertakes and agrees as follows: 1. Confidential Information means the RFP and other documents and data received and to be received in relation thereto, everything contained therein, all documentation, data, particulars of the works and technical or commercial information, whether verbal, written, visual, tangible, intangible, electronic form or otherwise, made by (or on behalf of PIA or obtained directly or indirectly from PIA or its representatives, or its related corporations, group, associates or advisors, by the Applicant or which is generated by the Applicant or any information or data that the Applicant receives or has access to, whether pursuant to its participation in the aforementioned tender process or otherwise, as being confidential information of PIA. 2. The Applicant shall use the Confidential Information solely for the purposes of preparing proposal for the captioned project ( Authorized Purpose ) and for no other purpose whatsoever. 3. The Applicant shall take all steps and measures, as are required, at its own costs and expenses, to maintain the confidentiality and secrecy of Confidential Information in accordance with the procedures that are required to protect Confidential Information. The Applicant may disclose Confidential Information to its authorized representatives, provided that the Applicant shall ensure at its own costs and expenses that such authorized representative holds confidential and secret the Confidential Information, in accordance with the terms of this Undertaking. 4. Confidential Information is the property of PIA. Nothing in this Letter of Undertaking shall be construed as granting any proprietary rights, by license or otherwise, to any Confidential Information or to any invention or any patent, copyright, trademark, or other intellectual property right that has issued or that may issue, based on such Confidential Information. 5. The obligations of the Applicant under this Letter of Undertaking shall be continuous and shall not lapse. The Applicant shall not at any time whatsoever: (i) disclose, in whole or in part, any Confidential Information received directly or indirectly from PIA to any third party. (ii) reproduce, publish, transmit, translate, modify, compile or otherwise transfer the Confidential Information. (iii) make any press or other public statements (which includes announcements and releases) relating to the Confidential Information. 7. In case the proposal of the Applicant is not accepted and immediately upon the acceptance of the proposal of any of the other Interested Party, the Applicant shall: (i) Return all Confidential Information including without limitation, all originals, copies, reproductions and summaries of Confidential Information; and/or

(ii) Destroy all copies of Confidential Information in its possession, power or control, which are present on magnetic media, optical disk or other storage device, in a manner that ensures that the Confidential Information is rendered unrecoverable. 8. The Applicant shall certify to PIA that it has returned or destroyed such Confidential Information within three (3) days of such a request being made by PIA. 9. This Letter of Undertaking including its validity and interpretation, the merits of any dispute or claim arising out of or relating to this Letter of Undertaking shall be governed by the laws of the Islamic Republic of Pakistan and the courts in Karachi shall have the exclusive jurisdiction to adjudicate any such disputes. Signature of Authorized Representative For and on behalf of