AIR INDIA CHARTERS LIMITEDmmd.airindia.co.in/aimmd/tender/RFP for Ancillary Revenue Through... ·...

TENDER NO.: AICL/CC/TPA/COK/2016/002

AIR INDIA CHARTERS LIMITED

NOTICE INVITING TENDER

(Tender No. AICL/CC/TPA/COK/2016/002)


Tender for Third Party Advertisement Rights on High Visibility Platforms

on its Aircraft, Passenger Related Consumables and Digital Properties of

AICL

01 Tender no. AICL/CC/TPA/COK/2016/002

02 Name and address of proposer

Chief of Corporate Communications,

Air India Express,

Airline House, Durbar Hall Road, Kochi,

Kerala 682016

Telephone : 0484 2350166

03 Name of the contract Third Party Advertisement Rights on High

Visibility platforms on its aircraft,

passenger related consumables and digital

properties of AICL

04 Period of contract Three year from the date of signing of

contract agreement. (Further extendable

on mutual agreement).

05 Contract intended for Marketing and space selling, Advertisement

content creation, Production,

fixing/placing/displaying advertisements as

per plan, liaison with advertisers &

regulators for necessary permissions/

approvals and overall management of the

scheme.

06 Last date and time of submission of sealed bids

21.01.2017 , 17.00 Hrs.

07 Place of submission Office of Chief of Corporate

Communications, Air India Express, First

Floor, Airline House, Durbar Hall Road,

Kochi, Kerala 682016.

08 Bid System Sealed Two Bid System. Cover 1 – Technical Bid and Cover 2 – Commercial Bid as explained in this document.

Both covers should be in a master

envelope Super scribed with “Bid for

appointment of Agency for Third

Party Advertisement Rights - Tender

No: AICL/CC/TPA/COK/2016/002”

09 Earnest Money Deposit Rs. 2, 00,000/- (Rupees Two Lakh only) shall be submitted along with the technical bid in the form DD/pay order/ banker‟s cheque, drawn in favour of Air India Charters Limited payable at Kochi. Bids without EMD shall be rejected.


INDEX

Sl. No. Content Page No.

1 Preamble 04

2 Objectives 05

3 Scope of work 06

4 Terms of Engagement 10

5 Pre-Qualification Criteria 14

6 Guidelines to Bidders 17

7 Benefits to Micro & Small Enterprises (MSEs) 19

8 Selection Process 20

9 Disclaimer 22

Annexure A

Technical Bid Forms 23-26

Annexure B

Commercial Bid Forms 27-33

Annexure C

Authorization Letter 34

Annexure D

Photos of Meal Box in Group A & the platforms under Group C.

35-41

Annexure E

Winter Schedule of the airline

Annexure F

Format of Integrity Pact


1. PREAMBLE:

Air India Charters Limited (AICL), headquartered at Kochi, Kerala, is a wholly owned subsidiary of Air India, and it operates the airline under the brand name: Air India Express (AIE). Air India Express, India‟s first international Low Cost Carrier (LCC) started operations on April 29, 2005, with three flights, taking off simultaneously from Thiruvananthapuram, Kochi and Kozhikode. Currently, Air India Express has around 600 weekly departures. The schedule reliability of the service stands at an impressive 99.8 percent. Air India Express flew 2.6 million passengers in 2014-15; and 2.8 million passengers in 2015-16 respectively, and this figure is likely to touch 3.5 million passengers in 2016-17. The airline‟s target segments are the Indian expatriate and budget travellers. The airline aims at providing non-stop service to its customers. The Airline‟s vision at this time is to become India‟s most efficient and preferred LCC on regional international routes; constantly exceeding passenger expectations, in terms of quality, convenience and comfort. Our fleet consists of 23 state of the art B737-800 aircraft. As per the present business plan the fleet size will be increased progressively. Currently Air India Express flies to 15 international destinations– Dubai, Sharjah, Abu Dhabi, Al Ain, Bahrain, Dammam, Doha, Kuwait, Muscat, Salalah, Ras Al Khaimah, Riyadh, Singapore & KualaLumpur, Dhaka from 15 Indian cities – Kozhikode, Kochi, Thiruvananthapuram, Mangalore, Chennai, Tiruchirappalli, Mumbai, New Delhi, Pune, Amritsar, Lucknow, Jaipur, Varanasi, Chandigarh & Kolkata. With six additional aircraft that have joined our fleet recently, the Airline has plans to increase the frequency of flights on existing routes and expand to newer destinations including Tehran. The Airline‟s distribution system is entirely web-based. In addition to on-line reservations and bookings, the reservation system also supports on line booking / payments for ancillary services such as advance seat reservation, excess baggage, travel insurance, special meal etc.

As the airline connects Indian cities to highly potential destinations like UAE and other Middle Eastern countries, the scope and reach of OOH advertisement on our platforms is highly impressive. By granting rights for third party advertisements on our platforms we expect to create a win-win situation for the passengers, advertisers and the airline.


2. OBJECTIVES

To increase the ancillary revenue through advertisements.

To enhance the cabin ambience by placing well designed advertisement

displays.

To enhance the airline‟s stakeholder engagement on & off the flight.


3. SCOPE OF WORK:

3.1. Marketing, space selling, designing, production and display of third party advertisements on the following platforms available with us. The platforms are grouped as, A, B & C based on the character, logistics and other considerations. Agencies can opt to quote for platforms in one or multiple groups based on their core competencies.

# Advertisement Platform Particulars

Group A (Non- certified medium)

1 Advertisement on the top of the Meal/snack box

Exposure to 3.9 million passengers annually. AIE is the only LCC that offers complementary meal/snacks on board on all its flights. 189 seats on each flight.

2 Product Sampling Any utility sample or brochures with utility vouchers/ gift coupons weighing to a maximum of 50gms each with prior approval allowed for sampling. The samples will be distributed by cabin crew to all passengers in a flight with 189 seats. Currently Air India Express has about 600 weekly departures.

Group B ( Digital Medium)

1 Air India Express web site – www.airindiaexpress.in

Approximately 16.5 million visitors annually- 100% booking through the website.

Web banner with slider option to carry maximum 4 images on the homepage of the website. Size: 400x280 pixels. Clickable to advertiser‟s brand website.

2 Monthly HTML Newsletter of Air India Express.

1.5 million E-mails annually. One clickable insertion per newsletter.

Group C ( Certified Medium) *(Photos of the platforms are given as Annexure D)

Nos. available units for advertisement per aircraft.

Measurement of the advt. space available per unit.

1 FW LH Cabin bulk head 1 35” x 13”

http://www.airindiaexpress.in/


2 FW RH Cabin bulk head 1 44” x 13”

3 AFT Bulkhead LH 1 36” x 15”

4 AFT Bulkhead RH 1 36” x 15”

5 Sidewall liners – small 20 20” x 15”

6 Sidewall liners – big 40 39” x 15”

7 Tray Table Outer (Seat back device) 152 14” x 4”

8 Tray Table inner 152 15” x 4”

* The pictures of the platforms given in Annexure D are representative only and given for the purpose of reference.

3.2. The advertisements will be printed/ displayed in multi colour on various

items/ platforms listed above confirming to the regulatory requirements . – 3.3. For printing the advertisement on the top of the meal/snack box ,the

bidder has to seek prior approval of AICL designated official w.r.t the content & design of the advertisement at least 20 days before start of the printing. On approval of the design the agency needs to further coordinate with the AICL appointed printer. The procurement/ printing plan of meal boxes would be detailed in the SLA to be signed between AICL and successful bidder. If the agency fails to adhere to the above timeline, the airline shall go ahead with procurement/printing of meal box without the advertisement.

3.4. Product Sampling: As of now there are about 600 weekly departures. The agency needs to give a minimum commitment w.r.t number of flights that they want to do the sampling at the time of bidding. Agency can choose to do the sampling over and above the committed number of flights depending on market dynamics. Agency will get permission for product sampling on flight of his choice, if operational/commercial priorities of the airline are not compromised for such activities. On each occasion of product sampling, the agency has to submit one or two pieces of the actual sample to the designated official of AICL 20 days prior to the flight for testing w.r.t quality, utility, weight and other factors. On approval the agency needs to further coordinate with the Catering Division of the airline, the modalities of the same would be detailed in the SLA to be signed between AICL and successful bidder.

3.5. For platforms listed under Group C, the successful bidder has to ensure that all the materials/stickers/ fixtures used are DGCA compliant and have to liaise on its own with all regulatory authorities such as FAA/ EASA/DGCA/ AAI/ BCAS to ensure the compliances throughout the period of the contract.

3.6. The successful bidder would represent Air India Express for marketing and space selling and supply the advertising matter in soft form for prior approval of Air India Express.

3.7. The airline has the sole discretion to decide the routes on which the aircraft would be deployed based on market dynamics and operational requirements. Further the deployment of the aircraft on day to day basis would be solely determined by the airline at its discretion. The aircraft utilization plan cannot be based on the advertiser‟s/ agency‟s preferences.


3.8. The proper upkeep of the advertisement throughout the period of display as per the pre-decided frequency is the responsibility of the agency concerned. AICL may remove if any of the displays are found unfit/tampered/ spoiling the ambience of the aircraft for which AICL shall not be held accountable/ responsible.

3.9. The agency has to ensure that the properties inside the aircraft are not being tampered/ damaged / spoiled during the fixing/removing of the displays. The agency will do the affixing/removal of the displays inside the aircraft only under the supervision of an AICL appointed person. Further the Agency should ensure that the cleaning/ affixing materials adhere to highest aviation standards. AICL has the rights to recover costs in the event of violation of above.

3.10. The agency needs to have the required certifications, facilities to carry out the works and has to liaise on its own with all regulatory authorities such as FAA/ EASA/DGCA/ AAI/ BCAS and engineering for access to the aircraft for fixing / changing the displays.

3.11. The advertiser needs to have technology/ expertise for optimum utilization of the time slot given for change of displays, without affecting the flight schedules. The airlines maintenance plan and core business demands (deployment and utilization of aircraft) will not be compromised on any circumstances. The agency has to complete all the works within the stipulated time frame and under no circumstances the aircraft will be held beyond the allotted the time.

3.12. Primarily permissions from two departments of the airline, viz., Corporate Communications & Engineering are to be obtained before proceeding to fix/ change the displays. The advertising agency has to obtain prior approval from the designated official of AICL w.r.t. advertising content, design, materials used and any fixtures /provisions that may be used in this connection. On approval, AICL will grant time slot to the agency for fixing/ removing the advertisement. The agency should be prepared to work on the aircraft wherever it is positioned. The modalities, time frame, frequency of change of advertisement etc. will be decided on consultation with the successful bidder and a service level agreement will be signed between AICL and the agency. The operational as well as commercial interests of the airline will be given primary importance in deciding the above.

3.13. The production cost and resources required for exhibiting the advertisements are to be borne by the advertising agency. AICL‟s commitment is restricted strictly to providing the agency with bare surfaces of the above platforms as available in the aircraft and in other places.

3.14. The advertisements will be subject to the normal restrictions in respect of certain categories of advertisements such as cigarettes, liquor, erotic content, advertisements from competitors, from Private insurance companies offering policies against air accidents etc. The advertisements should not propagate any religion or religious belief or have picture of the leaders of the particular sect of religion or political parties. No political advertisements are allowed in any circumstances. Advertisements that are


considered objectionable in the eye of law or that may hurt public sentiments or political believes shall not be printed. Advertisements prohibited under various acts and laws of Central/State Governments and various local government bodies shall not be printed. There shall not be any sort of obscenity in the design and matter of advertisement material. The bidder will be fully liable for any contravention in this regard and will be liable under the law of the land. Any complaints, legal claims/ actions against publishing of the advertisements will be the sole responsibility of the advertiser and selected advertising agency will indemnify Air India Charters Limited from all actions/ claims arising out of the concerned advertisement.

3.15. Air India Express is a robust performing airline, which has a business plan to expand its fleet size and destinations based on market dynamics. The agency(ies) should be prepared to take up the additional platforms which may be offered for advertisements according to the addition of capacity and market expansion at proportionate hike in the contract value. However, Air India Express reserves its rights to offer the additional platforms to any other agency/party in the event of capacity addition.


4. TERMS OF ENGAGEMENT

4.1. Validity: The contract shall be valid for a period of three (3) years from the date of signing the contract. This could be further extendable on same terms and conditions for a further period of one year on mutual agreement. 4.2. Payment Terms: Group A Meal/ snack box : The successful bidder getting the rights for third party advertisement rights on meal boxes will have to pay the fixed carrying cost per box to AICL. Meal boxes are procured in bulk for a long term use. Hence the agency has to make advance payment of the carrying fee of the advertisements at least 15 days prior to the procurement/printing on each such occasion. (Example : If the airline plans to procure 0.6 million boxes for the use of two months, the agency has to make upfront payment). The agency needs to pay the carrying cost to AICL irrespective of utilisation of this platform for advertisement. Product Sampling: As mentioned in the Scope of Work, the agency needs to give commitment w.r.t minimum number of flights that they will do the sampling activity. The annual amount based on this minimum committed number of flights to be paid to AICL in 12 equal monthly instalments. If the number of flights surpasses the pre committed numbers the additional amount over and above the committed amount needs to be paid in advance at least 15 days before commencement of sampling to get access to such additional flight. Group B & Group C The payment of the annual fee of each year against the Group allotted, to be made by the agency on a monthly basis in 12 equal instalments in a year. The monthly payment to AICL to be made by 5th of every month, irrespective of utilization of the platforms for advertisements by the agency. For platforms/ items under Group A, B & C ,if the agency/agencies fail to make the timely payment to AICL, AICL would invoke penal clause, forfeiture of security deposit, cancellation of contract or legal proceedings. 4.3. Security Deposit :

The bidder who qualifies for award of contract will have to deposit 5% of the total

contract value as interest free security deposit with AICL within 2 weeks of receipt of

the Contract. The Security Deposit is to be paid by a Bank Draft or Banker‟s Cheque

in favour of the Air India Charters Limited, payable at Kochi or by way of execution

of a Bank Guarantee for an equivalent amount. In case of submission of Security

Deposit by Bank Guarantee, it may please be noted that the original Bank Guarantee


has to be forwarded by the Bank directly to AICL through registered AD. The

expenses incurred towards submission of Security Deposit / Bank Guarantee will

have to be borne by the agency. The Security Deposit / Bank Guarantee will be

refunded / returned after three months of successful completion of deliverables

mentioned in the contract and after adjusting deductions/ penalties if any. Air India

Express reserves the right to forfeit the security deposit partly or fully in case of

violation/ non fulfilment of agreement and service conditions. 4.4. Security Management: Safety and security of its aircraft is primordial to AICL, and the agency which gets access to its aircraft for affixing the displays should have to ensure that safety and security aspects are not compromised in any manner. The agency will be solely responsible to ensure that the personals who get access to the aircraft for works related to this contract possess high level of integrity, moral values, ethics etc. The agency will be held legally and morally responsible for any lapse in safety and security. The agency shall indemnify AICL from judicial /financial / moral responsibilities on the above matter. As the successful bidder would get access to commercially important data and contacts of the Airline, the agency should ensure utmost confidentiality and fair play. They have to ensure that no information is being misused or misrepresented or shared with any third party. The agency should always ensure that the data made available for this work is not being used for any purpose that would be detrimental to the interest of AICL. All contacts, such as e-mail ids, phone numbers and other contact information which are being gathered as part of this assignment should be shared exclusively with AICL and confidentiality of the same should be ensured. 4.5. Liability The agency shall be solely responsible and liable for the consequences arising out of violation of law, violation/non fulfilment of statutory obligations/regulations, unauthorised access, and infringement of rights, loss or damage arising out of any act or deeds in connection with this assignment. Further AICL shall in no way be responsible and liable for consequences arising out of any type of factual/human/ technical errors and the consequences arising out of violation of law, unauthorised access, and infringement of rights, loss or damage arising out of any act or deeds in connection with this assignment. The agency‟s liability would be not be absolved or dissolved by the mere fact that the AICL designated representative had approved the content and design of the advertisement. The agency shall indemnify AICL from judicial /financial / moral responsibilities on the above matter. As far as the material of the fixtures/displays inside the aircraft the sole liability of ensuring adherence to DGCA and other regulatory standards are on the agency and agency has to bear any consequential damages that may arise due to non compliances.


4.6. Penal Clause: I. Based on a monthly evaluation, penal clause of maximum 5% of contract value

could be imposed as penalty on each such instances on the agency if the work/deliverables are not up to the desired level; AICL holds the sole discretion in the assessment and imposition of penalty.

II. Liquidated Damages: The aircraft is required to be made available for fixing the advertisement material inside the aircraft. Timely delivery is, therefore, the essence of the contract. In case of delay in delivery, liquidated damages will be charged from the defaulting party at the rate of 1 % (one percent) per week or part thereof of the value of the contract value, subject to a maximum of 10% (Ten percent) of the contract value.

III. Penalty for Substandard Quality: After the acceptance of delivery in our aircraft, in case of any complaint received from our In-flight staff or passengers or caterers etc, at the time of usage of supplied item(s) or regarding poor quality of display item(s) then AICL reserves the right to penalise the agency and if the complaint continues to persist and if AICL is convinced that there is no intention of remedial action at the agency‟s end, the contract could be cancelled and penal action will be taken at the sole discretion of Air India Charters Ltd ,including forfeiting of the Security Deposit.

IV. The Agency will indemnify AICL from any penalty/damages/ losses arising out of violation of law/ non-fulfilment of statutory obligations/regulations relating to the execution of the works covered under this tender. Further AICL could also invoke the Termination clause in such instances. 4.7. Termination Clause: AICL reserves the rights to terminate the contract at any stage without assigning reason or issuing any prior notice.

a) In the event of unsatisfactory performance the Contract shall be terminated with one month's advance notice and security deposit would be forfeited.

b) If there is a change in AICL‟s requirement, the Contract shall be terminated with three months‟ advance notice.

c) In the event of H1 party failing to perform as expected, AICL reserves the right to terminate the contract with H1 at any stage of the contract period giving adequate notice period, and approach H2 to carry out the work for the remaining period at H1 rates, after obtaining approval from the Competent Authority.

The agency can terminate the contract with three months advance notice. AICL reserves the right to award the contract to any other agency on termination of the awarded contract. 4.8. Arbitration: Any dispute arising between the parties in respect of the construction, interpretation, application, meaning, scope, operation or effect of this document or the validity or breach thereof, shall first be settled by mutual consultation. If the dispute remains unresolved after a period of 90 days from the date when the mutual consultation has started, the matter shall be referred for settlement to 'SCOPE FORUM OF


CONCILIATION AND ARBITRATION', Govt. of India, and the award made in pursuance thereof shall be binding on the parties. 4.9. Jurisdiction Any dispute whatsoever shall be subject to the jurisdiction of the courts of Kochi Kerala, or Mumbai, Maharashtra only.

4.10. Force Majeure Neither party shall be liable for delay in performing obligations or for failure to perform obligations if the delay results from any of the following (whether happening in India or elsewhere) force majeure, Act of God or any Governmental act, fire, earthquake, explosion, accident, industrial dispute, civil commotion, or anything beyond the control of either party. The party shall use all reasonable endeavours to minimize any such delay. Upon cessation of the event giving rise to the delay the parties shall in so far as may be practicable under the circumstance, complete performance of their respective obligations hereunder.


5. PRE-QUALIFICATION CRITERIA:

Bids of the agencies/parties who fulfil the following pre-qualification requirements, and submit documentary proof thereof along with the technical bid, will only be eligible for evaluation of the technical bids. Bids without adequate supporting documents shall be treated as incomplete.

5.1. Experience :

a) The bidder should have minimum 3-year experience in Advertising

Business/Space Selling/ Direct Marketing activities. The Agency must also

have infrastructure and network for obtaining advertising business.

b) Agencies bidding for certified platforms mentioned under Group C should

necessarily have prior experience of minimum one year in any of the

immediate three financial years in advertising on similar certified platforms

inside passenger aircraft mentioned in the scope of work. They should

produce proof of such actual works undertaken for airlines with DGCA or

equivalent authority compliances/permissions along with the technical bid.

5.2. Turn Over :

a) The agencies bidding exclusively for platforms mentioned under Group A &

Group B should have achieved a minimum turnover of Rs. One Crore

(Rs.1 Cr.) per annum in any of the immediately preceding two financial years

from the business of advertisement/ publicity.

b) The agencies bidding for platforms under Group C should have achieved a

minimum turnover of Rs. Ten Crore (Rs.10 Cr.)per annum in any of the

immediately preceding two financial years from the business of

advertisement/ publicity.

5.3. The bidder must have a Permanent Account Number (PAN) or

applicable Income Tax registration in the country of registration. A

copy of the PAN/ registration is to be submitted.

5.4. The bidder must have a currently valid Sales Tax / VAT/ Service Tax

Registration Certificate or applicable certification in their country of

registration. A copy of the Certificate is to be submitted.

5.5. Copy of Annual Report / Balance Sheet / Profit & Loss Account of the

last three financial years duly certified by a Chartered Accountant, is to

be submitted.

5.6. Copies of Income Tax (IT) returns for the last three financial years are

to be submitted.

5.7. The bidder as applicant should not have been blacklisted by any

Central / State Government / PSU/ Public Authority or Organisation. A

self certification in this regard may be submitted.

5.8. The applicant agency should not be involved in any major litigation

that may have an impact of affecting or compromising the delivery of


services as required under this Tender and in the execution of the

contract.

5.9. Earnest Money Deposit:

EMD of Rs. 200000/- (Rupees Two Lakh only) by way of Demand Draft / Pay Order / Banker's Cheque in favour of “Air India Charters Limited”, payable at Kochi should be submitted along with the Technical Bid. No other mode of payment is acceptable. EMD will not carry any interest. EMD in case of unsuccessful bidders will be refunded within 45 days of award of contract. EMD of the successful bidder will be returned without any interest, after receipt of Security Deposit or Bank Guarantee in lieu thereof. EMD will be forfeited in the event of a bidder withdrawing or modifying his bid after opening of the tenders and till completion of the tender process, and / or in the event of the successful bidder declining to accept the Contract, or to pay the Security Deposit. The Technical Bid would be rejected if it has been received without EMD, or proof of submission or the EMD has been submitted in a mode other than as specified above, or a valid proof of exemption from submission of EMD has not been provided. For details regarding exemption of EMD please refer relevant clauses in this tender document. 5.10. Following documents/ proof to be provided (Self attested

copies) along with the technical bid by the bidder at their own

cost:

a) Certificate of incorporation/ registration of firm

b) Memorandum of Association, Article of Association or other related document

to establish the nature of business.

c) PAN, Service Tax Registration (Applicable for companies registered in India.)

d) EMD of Rs 200000/- in the form of DD/ Bankers Cheque drawn in favour of

Air India Chartres Limited, payable at Kochi.

e) Audited Balance Sheet & Profit and Loss Account of the bidder for the

financial years 2013-14 , 2014 -15 & 2015 -16.

f) Copy of Income Tax Return for last three financial years, 2013-14 , 2014 -15

& 2015 -16. (Applicable for companies registered in India.)

g) The segment reporting of the audited financial statement to establish

minimum turnover requirement as mentioned in Pre Qualification Criteria in

the above three financial years. In the absence of segment reporting in the

financial statement, the agency may submit a document duly certified by a


Chartered Accountant to prove the turnover from advertisement/publicity

business.

h) Agency Profile and a power point presentation on the topic “Scope of Ancillary

Revenue Generation in airline industry through Third Party Advertisement”

should be submitted in electronic form (soft copy) in a CD/ USB drive.

i) Documents to establish the available infrastructure facility.

j) A certificate accepting all the terms and conditions unconditionally of the

tender should be submitted on the bidder's letter head.

k) Self-certification that the agency is not blacklisted or not involved in major

litigations.

l) Over and above, the agencies bidding for platforms under Group C should

furnish self certified copies of the documents establishing their previous

experience in handling certified media in the airline industry along with copies

of the certifications obtained from regulatory authorities for the execution of

such works in other airlines.

m) Agencies registered outside India may provide corresponding relevant

documents as proof.

5.11. Air India Express may carry out a facility audit during the due diligence stage.

The agency shall be prepared to produce any other document as and when

demanded by concerned officials of AIE to assess the technical competency of

the bidder.


6. GUIDELINES TO BIDDERS

6.1. Technically eligible agencies based anywhere in the world can apply to the

tender. However it is mandatory to quote/present all the monetary values such as EMD, Turn Over, Security Deposit, Rates, Taxes, Contract Value etc. in INR (Indian Rupees) to maintain uniformity during evaluation.

6.2. Eligible agencies can quote for any platforms in any of the groups.Eligible Bidders can quote for multiple groups based on their competencies.

6.3. Before submitting bid, bidders are requested to carefully examine the scope of work, pre-qualification criteria. For any clarification/ additional information please be immediately in touch with Ms. Rema Raja, DGM, Corporate Communications ,Air India Express Head Quarters, DH Road, Kochi, Kerala during working hours. You may also communicate through e mail: Rema. Raja@ airindia.in/[email protected] Telephone: 0484 2350166.

6.4. The bid application shall be typed or written in indelible ink .The bid and all correspondence incidental and concerning to the bid shall be in English language only.

6.5. AIE reserves the right to modify the tender document by amendment for any reason whatsoever at any time prior to the last date of submission of bid and such amendments if any shall be displayed on the website (http://www.airindiaexpress.in/) only.

6.6. The bidder who meets all the Pre-Qualification criteria may submit the bids in sealed cover in the following manner.

a. Duly filled Technical Bid form (i.e., Annexure A of this document) along with

all documents/ proof mentioned under Point 5, i.e., Pre Qualification Criteria

shall be submitted in a separate sealed envelope super scribed with

“Technical Bid for Third Party Advertisement Rights - (AICL/CC/TPA/COK/2016/002)”. All pages of the tender documents

shall be signed by the applicant/authorized person in token of acceptance of

all the terms and conditions. The duly signed tender document shall also be a

part of the agreement to be signed in future with the successful bidder. The

technical bid should not contain any information about the commercial bid. If

the duly filled commercial bid or any information related to commercial bid is

found enclosed in the Technical Bid envelope such bid is subject to rejection.

b. Duly filled Commercial bid form (ie. Annexure B of this document should be

enclosed in a separate sealed envelope super scribed with “Commercial Bid

for Third Party Advertisement Rights -

(AICL/CC/TPA/COK/2016/002)”.

c. Both the envelops as mentioned in 6.4.a & 6.4.b should be enclosed in a

sealed master envelope super scribed with “Bid for Third Party

Advertisement Rights - Tender No: AICL/CC/TPA/COK/2016/002”

addressed to Chief of Corporate Communications, Air India Express, Airline

House, Durbar Hall Road, Kochi, Kerala 682016 . This Master envelope should


also mention the contact /address details of the bidder with e-mail and

telephone numbers.

d. The bid has to be submitted on or before 21st January, 2017, 17.00 hours.

Bids received beyond the timeline are subject to rejection.

6.7. The rates quoted will be valid for a period of 120 days from the closing date

of submission of bid. The price offered shall remain firm till the completion of

the contract. Any request for change in price shall not be entertained during

the period of this contract.

6.8. Incomplete bids are liable to be rejected at any stage. However, Air India

Express at its discretion may call for any clarification regarding bids

submitted. Air India Express at its discretion may also ask for the submission

of any additional/missing/incomplete document(s) within a stipulated time

period. In such case(s), the party shall have to comply with Air India

Express‟s requirement within the specified time. In case of non compliance to

such queries, the offer will be rejected without entertaining further

correspondence in that regard.

6.9. In case the Commercial Bid and the Technical Bid are enclosed in the same

envelope in an open condition instead of in two separate sealed / closed

envelopes, such Bids will be rejected.

6.10. The Bids should be neatly presented. Corrections, if any, should be duly

authenticated with full signature of the person who has signed the Bids,

failing which such Bids are liable to be rejected.

6.11. The tender should be submitted neatly and all corrections, over-typing should

be attested with seal and full signature. Unsigned Bids are liable to be

rejected 6.12. AIE reserves the right to accept or reject any or all bids without assigning any

reason whatsoever it may be and shall not be liable for any compensation to expenses / loss incurred by the bidder in the process in whatever manner it may be.

6.13. The technical bid opening date, time and venue will be intimated to all bidders who submitted the bids within the stipulated timeframe through e-mail. The bidders may like to be present for the opening of the technical bid with proper authorization letter. (Annexure –C). If the date fixed for opening of technical bid is subsequently declared as holiday by Govt. of India/State Govt., the bid will be opened on next working day, time and venue remain unaltered.

6.14. On verification and evaluation of the technical bids, AIE will communicate only to technically qualified bidders about the opening of the commercial bid. The bidders may like to be present for the opening of the commercial bid with proper authorization letter. (Annexure –C).


7. BENEFIT TO MICRO AND SMALL ENTERPRISES (MSEs): As per Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 issued vide Gazette Notification No. 503 dated 23.03.2012 by Ministry of Micro, Small and Medium Enterprise of Govt. of India, MSEs must be registered with any of the following in order to avail the benefits/preference available vide Public Procurement Policy MSEs Order, 2012.

i) District Industries Centres (DIC) ii) Khadi and Village Industries Commission (KVIC) iii) Khadi and Village Industries Board

iv) Coir Board v) National Small Industries Corporation (NSIC) vi) Directorate of Handicraft and Handloom vii) Any other body specified by Ministry of MSME

MSEs participating in the tender must submit the certificate of registration with any one of the above agencies. The MSEs registered with District Industries Centres must submit the „Acknowledgement of Entrepreneur Memorandum (EM) Part-II‟ along with their bid. The MSEs registered with National Small Industries Corporation (NSIC) must submit the valid NSIC registration certificate along with their bid. The Micro and Small Enterprises not registered for the particular trade/item for which the tender is relevant, would not be eligible for exemption/preference. The registration certificate issued from any one of the above agencies must be valid as on close date of the tender. The successful bidder should ensure that the same is valid till the end of the contract period. The MSEs, who have applied for registration or renewal of registration with any of the above agencies/bodies, but have not obtained the valid certificate as on close date of the tender, are not eligible for exemption/preference. 7.1. Exemption from submission of Earnest Money Deposit (EMD) The MSEs registered with above-mentioned agencies/bodies are exempted from payment of Earnest Money Deposit (EMD). 7.2. Exemption from submission of Security Deposit (SD) The successful MSE registered bidder will however be required to submit the

Security Deposit equivalent to 5% of the Contract value.


8. SELECTION PROCESS A two stage selection process will be involved in finalising the winning Agency/Agencies. Stage 1 A Committee will evaluate the Technical bid from the bidders for conformity to pre-qualification criteria and select technically eligible agencies. Those who are judged by the committee to have met the expectations will be short listed for further processing and communicated. Stage 2 Opening and evaluation of Commercial Bid submitted by the agencies shortlisted in

stage 1. Evaluation will be done separately for meal box and product sampling in

Group A. Evaluation for Group B & C will be done group wise. The Highest Bidder

(H1) would be identified based on the total contract value offered for a period of

three years as in the commercial bid.

I. Evaluation of Group A Platforms:

Third Party Advertisement Rights on Meal Box and Product sampling are the two

items under Group A. Highest bidder (H1) would be identified separately for each of

the items in Group A.

Meal box: The agency quoting the highest total contract value for three years ( ie.;

indicative number of meal boxes given in the bid (A) x Carrying fee per meal box (B)

x 3 years) would be identified as the Highest bidder (H1) for meal box

advertisement.

Product Sampling: The agency quoting the highest total contract value for three

years (ie.; minimum number of flights committed (A) x rate per flight for product

sampling (B) x 3 years) would be identified as Highest bidder (H1) for product

sampling.

II. Evaluation of Group B & Group C Platforms.

Evaluation would be conducted Group Wise for Group B & Group C. The highest

bidder (H1) in each group would be identified based on the Sum Total of Contract

Value for three years as in Commercial Bid. The H1 thus identified would get the

advertisement rights of the platforms under Group B & C respectively.

For Platforms /items under Group A, B and C, mandatory/statutory taxes if any may

please be mentioned in percentage (%) in the relevant column of the Commercial

Bid, however, taxes will not be considered for evaluation of H1.


The AICL management, at any point of the contract period, has the discretion to

decide not to advertise on a particular platform or curtail unit numbers of the

platforms that can be made available for advertisements or add more numbers of

platforms for advertisement displays. In the event of which the carrying fee payable

to AICL would be proportionately adjusted.

III. PRICE NEGOTIATION:

As it is not the general norm for AICL to carry out price negotiations following

evaluation of the Commercial Bids, the bidders are advised to submit their best

quotes in response to this tender. AICL however, reserves the right to carry out

negotiations in exceptional cases with the bidder who has been evaluated by AICL as

having offered the highest revenue for AICL in response to the tender.


9. Disclaimer The information contained in this Tender or subsequently provided to applicant(s)/bidder(s) whether verbally or in documentary or any other form by or on behalf of Air India Charters Limited, is provided to the applicant(s)/bidder(s) on the terms and conditions set out in this Tender and such other terms and conditions subject to which such information is provided. This Tender is not an agreement and is neither an offer nor invitation by Air India Charters Limited to the prospective applicant(s)/bidder(s) or any other person. The Purpose of this Tender is to provide interested parties with information that may be useful to them in making their commercial offers pursuant to this Tender. However this tender document shall be construed to be the part of the agreement to be executed with the successful bidder. Air India Charters Limited make no representation or warranty and shall have no liability to any person, including any applicant or bidder under any law, statute, rules or regulations or tort, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost or expense which may arise from or be incurred or suffered on account of anything contained in this Tender or otherwise, including the accuracy, adequacy, correctness, completeness or reliability of the Tender and any assessment, assumption, statement or information contained therein or deemed to form part of this Tender or arising in any way in the tender process. Air India Charters Limited also accepts no liability of any nature whether resulting from negligence or otherwise howsoever caused arising from reliance of any applicant or bidder upon the statements contained in this Tender. Any information/documents including information/documents pertaining to this Tender or subsequently provided to applicant(s) or bidder(s) and/or successful bidder AND information/ documents relating to the bidding process; the disclosure of which is prejudicial and/or detrimental to, or endangers, the implementation of subject program is not subject to disclosure as public information/ documents.


ANNEXURE – A TECHNICAL BID FORMAT

(ON BIDDER’s LETTER HEAD) Ref. No. ………………… Date: ……… To Chief of Corporate Communications Air India Express, Airline House, Durbar Hall Road, Kochi Kerala 682016 REF: TENDER NO.: AICL/CC/TPA/COK/2016/002 Dear Sir/Madam, I/We, the undersigned applicant, have read, examined and understood in detail the bid document for Third Party Advertisement Rights on High Visibility platforms on its aircraft, passenger related consumables and digital properties of AICL.

I / We, accept and agree to abide by all the techno-commercial terms and conditions of the tender document unconditionally. As a token of our acceptance of all the

terms and conditions, I/We have signed all the pages of the document.

I/We confirm having submitted the details in support of qualifying criteria as required by you along with this application and necessary documents. In case you require any further information in this regard, I/we agree to furnish the same. I/We hereby declare that I/We was/were never blacklisted by any Central / State Government /PSU/Public Authority or Organization and not involved in any major litigations that may have an impact of affecting/compromising the delivery of services as required under this tender. I/We understand that we are bound to accept all terms and conditions of this tender. I/We hereby declare that all the information and statements submitted in this bid are true to the best of my/our knowledge and accept that any misinterpretation contained in it may lead to our disqualification. Yours sincerely, Signature, Name & Designation


Sl. No.

Description TENDER No: AICL/CC/TPA/COK/2016/002

01 Name of the Agency

02 Nature & Date of Establishment

03 Name of Directors/ Chairman/ CEO

04 Address of Regd. Office

05 Address of Offices in India.

06 Address of Offices in other countries. (If any).

07 Authorised Person to be contacted

Name: Designation: Tel: Fax: Mobile: Email:

08 PAN & Service Tax Registration Number

09 Please specify the Group(s)

bidding for (Please put mark)

Group A Group B Group C

EXPERIENCE

10 Have your company/firm been in the business of Advertisement/ Publicity/ Marketing/ Space Selling for a period of at least three years as on 31st November, 2016.

YES NO

11 Specify the number years in the above business.


12 Agencies quoting for platforms under Group C may specifically confirm whether they have prior experience of minimum one year in any of the immediately preceding three financial years in advertising on similar platforms inside passenger aircraft with permissions/compliances from DGCA or equivalent regulators.

YES NO

Turnover

13 Whether your company/ firm has achieved a minimum of Rs. One Crore turn over in any of the immediately preceding two financial years from the business of Advertisement/ Publicity in case you are quoting either for items/platforms in Group A or Group B or both.

YES NO

14 Whether your company/ firm has achieved a minimum of Rs. Ten Crore (10 Cr.) turn over in any of the immediately preceding two financial years from the business of Advertisement/ Publicity in case you are quoting for platforms in Group C.

YES NO

15 Please specify Total turnover of the organization (Amount in INR – in words and figures)

2014-15 2015-16

16 Details of major clients

17 List of Enclosures as per pre qualification criteria.

18 Are you eligible for exemptions under Public

YES NO


Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 issued vide Gazette Notification No. 503 dated 23.03.2012 by Ministry of Micro, Small and Medium Enterprise of Govt. of India

If yes please give details and submit the proof for the same.

19 Details regarding submission of EMD

Authorised Signatory Seal: Date: Place:


ANNEXURE – B

COMMERCIAL BID FORMAT (ON BIDDER’s LETTER HEAD)

Ref. No. ………………… Date: ……… To Chief of Corporate Communications Air India Express, Airline House, Durbar Hall Road, Kochi Kerala 682016 REF: TENDER NO.: AICL/CC/TPA/COK/2016/002 Dear Sir/Madam, I/We, the undersigned applicant, have read, examined and understood in detail the bid document for Third Party Advertisement Rights on High Visibility platforms on its aircraft, passenger related consumables and digital properties of AICL. I / We, accept and agree to abide by all the techno-commercial terms and conditions

of the tender document unconditionally.

I/We hereby confirm that the rate quoted against this tender is comprehensive of all

the services covered in the scope of work.

I / We understand that the rate quoted in the commercial bid is payable to AICL. I/We confirm that there is no hidden costs to AICL over and above those indicated in the price/financial bid. We confirm that, the benefit of reduction in statutory taxes/ levies, if any arising during the term of the contract, if awarded in our favour would

be passed on to AICL, wherever possible.

I /We also confirm that the rate quoted will be valid for a period of 120 days from the closing date of submission of bid. The price offered shall remain firm till the completion of the contract. I/We understand that request for increase in price shall not be entertained during the period of this contract. I/We hereby declare that all the information and statements submitted in this bid are true to the best of my/our knowledge and accept that any misinterpretation contained in it may lead to our disqualification. Yours sincerely, Signature, Name & Designation,

Authorized Signatory. Company Seal and address


FORMAT OF COMMERCIAL BID – Group A (Non- Certified Medium)

THIRD PARTY ADVERTISEMENTS RIGHTS ON HIGH VISIBILITY PLATFORMS OF AIR INDIA EXPRESS

TENDER NO : AICL/CC/ TPA/COK/2016/002

Format for Bidding For Third Party Advertisement Rights on the top of Meal/ Snack Box

#

Items (A) Annual Quantity (Approximate

Quantity is given here for reference & calculation of contract value

only. The actual quantity may

vary.)

(B) Rate Offered

as advertisement carrying fee per meal box.

INR. (excluding

taxes)

(C) Total Contract

value for period of 3 years .

C = A x B x 3 (INR in figures &

words.)

Meal box

3.9 million

Kindly specify rate of mandatory/statutory taxes applicable if any:

# Nature of Tax %

Date

Name & Designation of Authorized Signatory

Signature Company Seal.


FORMAT OF COMMERCIAL BID– Group A (Non- Certified Medium)



FORMAT FOR BIDDING FOR PRODUCT SAMPLING

# Item

(A) Minimum Number

of flights committed annually for

Product Sampling

(B) Rate offered per flight, ie.;

per departure.

INR(excluding taxes)

(C) Annual

value for Product

Sampling. INR

C=A x B

(D) Total Contract

Value for Product

Sampling for 3 years. INR

D= C x 3

Product

Sampling

Kindly specify rate of mandatory/statutory taxes applicable if any:

Nature of Tax Rate (%)

Date


Signature

Company Seal


FORMAT OF COMMERCIAL BID



FORMAT FOR BIDDING FOR ITEMS UNDER GROUP B (Digital Medium)

# Particulars Reach

(A) Monthly carrying fee offered excluding taxes

(B) Annual Amount B=Ax 12.

(C) Total contract value for 3 years. C= B x 3

1

Air India Express web site

(One advertisement

slot)

Approximately 16.5 million visitors

annually- the figure increases as the

airline is expanding its fleet size and network

2 Monthly HTML

Newsletter of Air India Express.

1.5 million E-mails annually- the figure

increases as the airline is expanding its fleet size and network

TOTAL CONTRACT VALUE FOR GROUP B in

figures. (excluding taxes)


TOTAL CONTRACT VALUE FOR GROUP B in

words. (excluding taxes)

Applicable Taxes

# Nature of Tax Percentage (%)

1

2

3

Date

Name & Designation of Authorized

Signatory

Signature

Company Seal


FORMAT OF COMMERCIAL BID



FORMAT FOR BIDDING FOR ITEMS UNDER GROUP C (CERTIFIED MEDIUM) ITEMS INSIDE THE AIRCRAFT

#

High visibility Platforms in aircraft.

(Numbers and measurements are given in Scope of

Work)

(A) Annual

carrying fee offered per

aircraft (INR)

excluding taxes.

(B) Annual

Carrying fee offered for fleet of 23

aircraft(INR) B=A x23

(C) Total

Contract value for

three years INR

C= B x 3.

1 FW LH Cabin bulk head

2 FW RH Cabin bulk head

3 AFT Bulkhead LH

4 AFT Bulkhead RH

5 Sidewall liners – small

6 Sidewall liners – big

7

Tray Table Outer (Seat back device)

8 Tray Table inner


TOTAL CONTRACT VALUE FOR GROUP C in figures. (excluding taxes)

TOTAL CONTRACT VALUE FOR GROUP C in words. (excluding taxes)

Applicable Taxes if any.

Nature of Tax Percentage (%)

Date


Signature

Company Seal


ANNEXURE –C

AUTHORIZATION LETTER FOR ATTENDING BID OPENING

(ON BIDDER’s LETTER HEAD) Ref. No. ………………… Date : ……… To Chief of Corporate Communications Air India Express, Airline House, Durbar Hall Road, Kochi Kerala 682016 REF: TENDER NO.: AICL/CC/TPA/COK/2016/002 Dear Sir/Madam, The following person(s) is/are hereby authorized to attend Technical/ Commercial Bid opening of subject tender.

Yours sincerely, Signature, Name & Designation NOTE: 1. Permission for entry to the Hall where bids are opened may be refused in case authorization as prescribed above is not received. 2. The authorized representatives, in their own, interest, must reach venue of bid opening well in time. 3. The authorized representatives must carry a valid photo identity. 4. Separate authorization letters would be required for Technical and Commercial Bid opening.

Sl.No Name E-Mail Contact

Number

Signature


Meal/Snack Box.



ANNEXURE –D Pictures of Meal Box in Group A & Platforms under Group C


Cabin photos with dimensions – Indicative only

1. FWD LH BULKHEAD

35” x 13”

2. FWD RH BULKHEAD


44” X 13”- 1 NO

5. SIDEWALL –BIG

39” X 15”- 40 NOS

6. SIDEWALL –SMALL


20” X 15” – 20 NOS

7. AFT BULKHEAD-LH

36” X 15”- 1 NO

8.

AFT BULKHEAD-RH


36” X 15”- 1 NO

9. TRAY TABLE-OUTER

14” X 4”- 152 NOS

1

0. TRAY TABLE-INNER


15” X 4 “- 152 NOS

ANNEXURE- E

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