Tenders

Sr No

Clarifications sought on

Our Comments

1

Page No 6 : Point No 1.1 : Kindly explain “Tenders are invited for Currency Verification & Processing Systems (CVPS) only from firms, who have supplied, installed and commissioned at least TEN CVPS, each with a capacity of at least 30 banknotes per second to Central Banks / Note Issuing Authorities during the period October 2006 to September 2009.”

This is a pre-condition for bidding in terms of past experience. The tenderer should have supplied at least 10 machines of at least the same capacity during the period and to the authorities indicated.

2

Page 8 point no : 2.8  : After award of the contract, if the awardee wishes to do the invoicing and accordingly receive money/ payment in the name of WOS (wholly owned subsidiary ) in India……..will that be within the terms of tender as existing ?

Payment can be made to the Indian WOS under the awardee’s specific authorisation. The contract can be framed accordingly.

3

Page No 9 : Point no : 3.3 (VI) Kindly explain “ The tenderer shall also indicate whether they have the capacity to manufacture, supply, install, test and commission all the required systems within the stipulated completion period of six months.“ This can only be confirmed once we are aware of period of the award of the contract.

The installation has to be completed within six months of award of contract. The tenderer has to confirm it.

4

We would need the site design and details where the machines are to be installed.

All details will be provided to the successful bidder. A visit to the sites can be arranged on request.

5

Page No : 12 Point No : 15   :  Evaluation of the tender.

We request for an explanation of the same with an example covering hardware costs and AMC price

As mentioned in the tender document, the tenders will be evaluated on a Total Cost of Ownership (TCO) basis taking into account (i) the total purchase price inclusive of all taxes, custom duties, other duties etc., (ii) all inclusive service contract (Comprehensive and all inclusive AMC with spares) amount for a period of two years after the expiry of one year warranty period, discounted at 8% to arrive at the Net Present Value (NPV). The rate for renewal of AMC will be calculated on the basis of the formula mentioned in the tender document.

6

The mentioned sites already have machines installed. Therefore, if this tender is won by a new vendor, will there be machines and maintenance agreements from different vendors for same site? Or, will Bank consider installing the new machines in one site and move the existing machines from that particular site to other four sites?

The machines to be delivered under the tender have to be installed at the sites indicated. The warranty maintenance has be provided by the vendor. However, the Bank reserves the right to award post-warranty maintenance.

 7.

Page No 29 Point No : 1.5 :
how the same is possible in four stackers.

The requirement relates to the capability that the system should possess.

8

Page 29 : Section IV Point : 1.5 : The notes fit for recirculation shall be automatically strapped into packets of 100 notes each. 10 packets of 100 notes each shall be shrink wrapped into a bundle. Each bundle shall be bar-coded with details like date, time, machine ID, denomination, no. of pieces, and total value.

Kindly Explain. What solution the bank is looking at.

On reconsideration, it has been decided to do away with the requirement of strapping of packets, shrink wrapping and bar coding. The revised para is as under:
‘The systems shall be computer based and microprocessor controlled and shall be capable of processing, counting, sorting and authenticating banknotes into the following types :

(a) Banknotes fit for recirculation
(b) Banknotes unfit for recirculation based on different levels of soilage
(c) Reject, Suspect and Forged notes
(d) Different levels of soilage
(e) Emission-wise sorting on design and series.

The notes fit for recirculation shall be automatically strapped into packets of 100 notes each.’

9

Page No 32 : Point 2.2:
To minimize the stoppages of the systems due to tearing of the notes, it shall be possible to adjust the speed of the transport belts.

Is the bank asking for variable speed for the machine? Please confirm.

Yes. A typographical error has inadvertently appeared in the following line:

‘The capacity of each system shall be in the range of 75,000 to 90,000 bank notes per hour.’

The line is now corrected to read as under:

‘The capacity of each system shall be a minimum of 30 bank notes per second.’

Page no 32, Point No 2.2 : In tender the bank has mentioned that “Each of the systems shall be so designed that it requires only one operator to handle all the operations, like feeding, programming, removing bottlenecks and taking out various outputs. Whereas the existing sites have 2 people to process cash on each machine.

It should be possible for a single operator to operate the machine. The existing staff deployment is not relevant to the tender.

10

Page No 33, Section 2.4.2 – IV : Do we need to supply the machines that can be fitted with third party detectors? If so how many, and paper/and or ink?

Would it be possible to supply third party detectors?

The machines have to have the capability to support third party sensors. Supply of specific detectors/ sensors is beyond the scope of this tender.

11

Page No 33, Section 2.4.2 : says we must sort the notes into the following 4 categories:a) Fit  b) Unfit c) Suspect d) Reject and further:

“The system shall also count the processed notes separately for each category and shall also have a provision for counting reject notes and supply the relevant data to the microprocessor and the computer.”

How does the bank expect the machine to count category c and d?

The Bank has specified a business requirement. The bidder has to see how the requirement can be met.

12

If we have to offer for more than one model, how do we do the same?

The bidder has to submit separate tenders, complete in all respects, for each model. One tender should have only one model/ solution.

13

Pages 34 point no : 2.4.7 : All tenderers may indicate whether their system can compare the serial number of note printed at two locations and sort notes that are defectively printed.
What does the bank need as output – is it a mandatory condition?

As per the tender document, the bidder has to indicate whether their system can compare the serial number of note printed at two locations and sort notes that are defectively printed. If yes, the bidder may indicate the type of output the machine can produce.

14

Pages 35 point no : 2.6.1 :Will the bank pay separate license fee for the software as it has mentioned in the tender.

If any software licence fees are payable, they shall be paid as a part of the overall tender amount. Total tender amount will be considered for evaluation.

On reconsideration, it has been decided to drop the following requirement from the para:

‘The data base should be kept in Oracle RDBMS and capable of up-gradation.’

However, the system has to have the capability to extract data for use by any other system.

15

Section IV : System Requirements and Specifications : Clause 1.0 : General : Sub Clause 1.5

“The notes fit for recirculation shall be automatically strapped into packets of 100 notes each. 10 packets of 100 notes each shall be shrink wrapped into a bundle. Each bundle shall be bar-coded with details like date, time, machine ID, denomination, no. of pieces, and total value.”

We would like to get a clarification, whether your intention is to have a fully automated online process right from banding of packets….to bundling…..to shrink wrapping of the bundles…..and finally the bar-coded labelling. That would mean a total hands free operation till the final product of shrink wrapped & labelled bundles for notes fit for recirculation. Should the pricing of such a packing line be an integral part of the main system cost itself?  Your current price format assumes this.

Please see the clarification provided under item 8.

16

Section III : General Conditions of Contract : Clause 5.0 : Terms of Payment : Sub Clause 5.1
“10% of the contract price against submission of the following:

i) Unconditional Order of Acceptance
ii) Bank Guarantee for equal amount
iii) Bank Guarantee towards Security Deposit.”

For 10% payment, you have requested for a BG of 10% plus the Security Deposit BG for 5% of the contract value. This is a duplication of the requirement and would request for consideration the  release of this 10% against the Security Deposit BG, which the vendor would submit against the order acceptance.

The Security Deposit is in the nature of a performance guarantee, whereas the bank guarantee mentioned at item no. (ii) is an advance payment guarantee. The two serve different purposes. 

17

Section III : General Conditions of Contract : Clause 5.0 : Terms of Payment : Sub Clause 5.4
“Balance 20% of the contract price will be released after the expiry of the warranty period. At the option of the vendor, this amount can be released upon successful completion of Site Acceptance Tests (SAT) on submission of a Bank Guarantee of an equivalent amount valid for a period of one year from date of signing of SAT certificate.”

Here we again request for consideration the release of this 20% against submission of BG for 15% amount only, as the Security Deposit BG for 5% would still remain with you.  As per the tender the security deposit BG would be discharged by you only after completion of warranty period.

The Security Deposit is in the nature of a performance guarantee, whereas the bank guarantee to be submitted for release of the balance 20% is a retention money guarantee. The two serve different purposes. 

18

Section III : General Conditions of Contract : Clause 23.0 : Liquidated Damages for Delay
“Time is the essence of the contract. The entire work, up to the stage of commissioning of systems i.e., commencement of processing of notes, shall be completed within 6 months from the 10th day of acceptance of letter of intent failing which liquidated damages at the rate of Rs 1 million per machine for each completed week of delay or part thereof subject to ceiling of 10% (Ten percent) of the contract price, maximum period being 10 weeks.”

The general norm for penalty of delayed supply is 0.5% per week per machine with a ceiling of 7.5 to 10 percent.  Rs. 1 million per week per machine would not seem to be reasonable considering the indicative value of the contract itself.  We request your consideration for the general norm as mentioned by us.

As requested, the provision for liquidated damages has been revised to read as under:

‘Time is the essence of the contract. The entire work, up to the stage of commissioning of systems i.e., commencement of processing of notes, shall be completed within 6 months from the 10th day of acceptance of letter of intent failing which liquidated damages at the rate of 0.5% per week subject to ceiling of 10% (ten percent) of the price. A part of the week shall be reckoned as a completed week for this purpose. The Bank reserves the right to terminate the contract for any delay beyond 10 weeks after the completion period. The Bank may deduct such damages from any moneys/payments due to the contractor. The Bank may however, extend the time of completion on force majeure conditions. For reasons beyond the control of the supplier, the Bank may extend the completion period at its discretion.’

19

Section II : Instructions to the Tenderer : Clause 4.0 : Part – II - Price

The price you have asked to quote is lump sum inclusive of all present taxes and duties.  However there is a possibility of change in the tax structure and value by the introduction of GST, which as per some reports is expected in April 2010.  This is a radically new tax approach under which all types of taxes are expected to be merged under one umbrella of GST and the tax slabs would also be re-worked.  Since these tax slabs are not known today, we cannot factor these taxes in our lumpsum price.  How would you consider this issue if the new GST structure is implemented in the near future.

Usually indirect taxes like sales tax, service tax etc. Generally form a part of the quoted price. Local levies like octroi are reimbursed at actual. Here in view of the current situation, we are agreeable to a situation where the price quoted is all inclusive with break-up of tax components as existing) with a caveat that in case of any change in basic tax structure, the price can be revised to accommodate the revision, subject to production of documentary evidence.