Tender specification - Regjeringen.no · 2.3 Deviations from the tender specification (1) If the...

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Tender specification Procurement of maritime transport services on the Bergen-Kirkenes-Bergen route 29 June 2010 THE ROYAL MINISTRY OF TRANSPORT AND COMMUNICATIONS

Transcript of Tender specification - Regjeringen.no · 2.3 Deviations from the tender specification (1) If the...

Page 1: Tender specification - Regjeringen.no · 2.3 Deviations from the tender specification (1) If the tender is intended to deviate from the tender specification, including if provisos

Tender specification Procurement of maritime transport services on the Bergen-Kirkenes-Bergen route 29 June 2010

THE ROYAL MINISTRY OF TRANSPORT

AND COMMUNICATIONS

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Contents

1. Information about the invitation to tender .................................................................................................... 4

2. Competition .................................................................................................................................................... 6

2.1 Legal basis ............................................................................................................................................... 6

2.2 Design and content of the tender .......................................................................................................... 6

2.3 Deviations from the tender specification ............................................................................................... 7

2.4 Revoking and amending the tender ....................................................................................................... 7

2.5 Timely submission of the tender ............................................................................................................ 7

2.6 Rejection ................................................................................................................................................. 7

2.6.1 Rejection due to conditions relating to the tender ............................................................................... 7

2.6.2 Rejection due to conditions relating to the licence applicant ............................................................... 8

2.7 Supplementary deadline for submission of documents ......................................................................... 8

2.8 Negotiations and clarifications ............................................................................................................... 8

2.9 Principles for communication ................................................................................................................. 8

2.10 Freedom of information ......................................................................................................................... 9

2.11 Duty of confidentiality ............................................................................................................................ 9

2.12 Provisions concerning transfer of ownership ......................................................................................... 9

2.13 Cancellation of the competition etc. ...................................................................................................... 9

2.14 Choice of tender ................................................................................................................................... 10

3. Requirements regarding licence applicants' qualifications .......................................................................... 11

3.1 General considerations ......................................................................................................................... 11

3.2 Organisational conditions ..................................................................................................................... 11

3.3 Experience of the carriage of passengers ............................................................................................. 12

3.4 Financial and accounting conditions .................................................................................................... 12

3.5 Status of tax payments and VAT payments .......................................................................................... 13

3.6 Accounting separation .......................................................................................................................... 13

4. Information about the assignment and requirements specification ........................................................... 14

4.1 General ................................................................................................................................................. 14

4.2 Key information about the procurement ............................................................................................. 15

4.3 Ports, sea routes and navigational certificates .................................................................................... 15

4.4 Vessels .................................................................................................................................................. 16

4.4.1 Information about the vessels ............................................................................................................. 16

4.4.2 Safety Management Certificates ......................................................................................................... 16

4.4.3 Insurance ............................................................................................................................................. 16

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3 4.4.4 Transport capacity and passenger certificate ..................................................................................... 16

4.4.5 Passenger facilities .............................................................................................................................. 16

4.4.6 Accessibility ......................................................................................................................................... 17

4.4.7 Flag state .............................................................................................................................................. 18

4.5 Crew ...................................................................................................................................................... 18

4.6 Route schedule ..................................................................................................................................... 18

4.7 Services and information for travellers ................................................................................................ 18

4.8 Provision of security ............................................................................................................................. 19

4.9 Reporting .............................................................................................................................................. 19

4.9.1 Statistics ............................................................................................................................................... 19

4.9.2 Accounting reporting and control measures ....................................................................................... 19

5. Draft contract for the procurement of services on the Bergen-Kirkenes coastal route .............................. 22

6. Annex A Document list ................................................................................................................................. 30

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1. INFORMATION ABOUT THE INVITATION TO TENDER

The Ministry of Transport and Communications (the "contracting authority") invites open

competitive bidding for operation of the Bergen-Kirkenes coastal route for a period of

8 years (with an option of a one-year extension). Commencement is 1 January 2013 at

the latest. The commencement date must be specified in the tender.

The public procurement of services for the Bergen-Kirkenes coastal route comprises a

transport service for passengers travelling locally, within the region or between regions

between specified ports of call ("port-to-port passengers") and a freight transport service

for the Tromsø-Kirkenes, Kirkenes-Tromsø stretch of the route. The capacity requirements

for the procurement are described in detail in chap. 4. The procurement is announced as

three alternatives; see chap. 4.1. As long as it is consistent with fulfilment of the public

procurement, the supplier may offer other travel products and freight transport services that

fall outside of the public procurement. The definition of the term "port-to-port passengers" is

provided in chap. 5. Draft contract, § 2. If travel products and/or port calls are offered that

fall outside of the public procurement, this must be specified in the tender. There are then

special requirements imposed for the formulation of the bid; see chap. 2, for establishing

accounting systems; see chap. 3 and for reporting; see chap. 4. Reference is also made to

the draft contract in chap. 5.

The Ministry of Transport and Communications is the licensing and subsidisation authority

for the route. The award of licences is regulated by the Professional Transport Act No. 45 of

21 June 2002; see § 7. The licence will be awarded following a tendering process; see the

Professional Transport Act § 8, and the Regulation on Tendering for Local Public Transport

of 26 March 2003, No. 400.

A received tender is also considered to be an application for a licence to operate the

coastal route, and is awarded for the same period for which the contract applies. For the

duration of the contract term, the contracting authority undertakes not to sign contracts for

the procurement of similar services on the Bergen-Kirkenes route with parties other than

the operator(s) selected through this competition, as long as the coastal route is in

ordinary operation.

The contract and the licence will be awarded for a period of 8 years. The deadline for

submitting tenders is 30 September 2010. The tender deadline is also specified in the

announcement, which is published at doffin.no. The invitation to tender is also advertised

on Lloyd’s List and on the website of the Ministry of Transport and Communications.

The competition presupposes that a net contract will be signed, i.e. that the licensee will

be responsible for both revenues and costs during the contract term. The licensee will

received fixed contractual remuneration.

The contracting authority has the option of extending the contract by up to one year

based on the same conditions as specified in the contract. The contracting authority

shall notify the licensee at least one year before expiry of the contract if this option is

to be utilised.

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The competition rules are described in chap. 2.

Requirements for the licence applicant's qualifications are stated in chap. 3.

A description of the assignment with associated requirements specification

is given in chap. 4.

A draft contract between the parties appears in chap. 5.

For information about the tender deadline, opening of tenders and bid acceptance deadline, see the announcement in DOFFIN and TED.

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2. COMPETITION

2.1 Legal basis

The most important provisions governing the competition are:

The Act concerning professional transport by motor vehicles and vessels of

21 June 2002 No. 45

Regulation on Professional Transport by Motor Vehicle and Vessel of 26 March 2003

No. 401.

Regulation on Tendering for Local Public Transport of 26 March 2003 No. 400

If, after expiry of the tender deadline, there proves to be only one licence applicant to

have submitted a tender or there is otherwise insufficient competition, the contracting

authority reserves the right to make use of subsequent negotiations; see Regulation of

26 March 2003 No. 400, § 5, 2nd para. In connection with such negotiations, no

significant changes may be made to the original tender conditions.

It is presupposed that licence applicants familiarise themselves with the general acts

and regulations that may affect the contractual relationship between the contracting

authority and the licensee.

2.2 Design and content of the tender

(1) The tender shall be made using annex B Tender form, combined with a binding offer letter. The tender shall be dated and signed.

(2) The tender shall be sent/delivered in a sealed, neutral envelope to the Norwegian

Ministry of Transport and Communications, Akersgata 59, Postboks 8010 Dep,

0030 OSLO, Norway. The envelope shall be marked "Åpnes kun av adressat,

saksnummer: 10/218. Tilbud: Kystruta Bergen–Kirkenes".

(3) The tender shall be in Norwegian. One copy of the tender shall be on paper.

(4) The same tender shall also be submitted electronically in PDF format. Annex D Budget shall be supplied as a spreadsheet. In the event of any discrepancy, the tender submitted on paper shall prevail.

(5) Documents to be enclosed with the tender are shown in annex A.

(6) The contracting authority shall assess three different alternatives for the assignment;

see item 4.1. Licence applicants shall submit tenders for the advertised alternatives

such that a tender for alternative 1) also requires submission of a tender for

alternatives 2) and 3), and a tender for alternative 2) requires a tender for alternative

3). A tender may be submitted for alternative 3) alone.

(7) If the licence applicant plans to operate other activities using the same vessels as for

public procurement for the Bergen-Kirkenes coastal route, in addition to annex D1

"Consolidated budget for the Bergen-Kirkenes coastal route", a separate annex D2

"Budget for contract for public procurement for the Bergen-Kirkenes coastal route"

shall also be submitted.

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The principles for accounting separation for the allocation of revenues and costs

between public procurement and other activities are shown in annex C.

2.3 Deviations from the tender specification

(1) If the tender is intended to deviate from the tender specification, including if provisos

are made, this shall be specified in annex B Tender form. Deviations shall be

specified in a separate annex, or alternatively reference shall be made to where in

the tender the deviations are described. They shall be precise and unambiguous,

and described such that the contracting authority can evaluate the deviations without

contacting the licence applicant

(2) Provisos shall, as far as possible, be priced. Provisos which are not priced will be

costed (or estimated) by the contracting authority when selecting a tender

(3) Alternative tenders will not be accepted.

2.4 Revoking and amending the tender

(1) The tender may be revoked or amended before the tender deadline expires.

(2) Revocation must be in writing.

(3) An amended tender is to be considered as a new tender and shall be formulated in

accordance with item 2.2.

2.5 Timely submission of the tender

The tender is submitted on time if it arrives at the Ministry of Transport and Communications' address before expiry of the tender deadline.

Tenders which arrive late will be processed in accordance with § 9 of the Regulation on Tendering for Local Public Transport.

2.6 Rejection

2.6.1 Rejection due to conditions relating to the tender

(1) A tender shall be rejected if:

a) it is not submitted in time; see item 2.5

b) it is not submitted in compliance with items 2.2 (1),(2),(3),(6) and (7)

(2) A tender may be rejected if:

a) due to provisos or errors, ambiguities, incompleteness or similar, there may be

doubt as to how the tender is to be assessed relative to the others

b) it does not include all the necessary information and obligations

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c) it does not state a requirement for an annual contract sum; see

annex D Budget

d) the licence applicant is unable to commence operations by the defined date

as specified in the announcement

e) it is abnormally low

b) it is not submitted in compliance with items 2.2 (4) and (5)

2.6.2 Rejection due to conditions relating to the licence applicant

(1) The contracting authority shall reject licence applicants who do not fulfil the

requirements defined for licence applicants' participation in the competition

described in chap. 3. If a supplementary deadline is granted in accordance with

item 2.7, the rejection obligation presupposes that such a supplementary

deadline has expired.

(2) The contracting authority may reject licence applicants who:

a) have not submitted the documentation as defined in chap. 3. If a supplementary

deadline is granted in accordance with item 2.7, the option to reject presupposes

that such a supplementary deadline has expired.

b) in their profession, have been guilty of serious failings in professional and ethical

requirements in their sector

c) have given grossly misleading or erroneous information, or have omitted

to provide information for which a requirement is made; see chap. 3

2.7 Supplementary deadline for submission of documents

If a licence applicant has not submitted documentation as presupposed in chap. 3 of the

tender specification, the contracting authority may grant a short supplementary deadline

for submission of these documents.

2.8 Negotiations and clarifications

(1) It is not permitted to amend the tenders or attempt to amend them through

negotiations.

(2) The following clarifications of the tenders are permitted:

The contracting authority may obtain further details from licence applicants in order

to have ambiguities in the tenders clarified, as long as the ambiguities are not of

such a nature that the tenders should be rejected in accordance with item 2.6.

(3) If the contracting authority becomes aware of obvious errors in the tender, these

will be corrected if there is no doubt as to how the errors should be corrected.

Other obvious errors are to be assessed in accordance with item 2.6.

2.9 Principles for communication

All communication concerning the competition shall be in writing in Norwegian and

addressed to the contracting authority's contacts as specified in the announcement.

In order to ensure equal treatment of all licence applicants, all questions and answers

between licence applicants and the contracting authority will be numbered and

distributed to everyone who has registered an interest in the competition.

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In its answers, the contracting authority will not reveal who has posed the question.

The contracting authority will not normally respond to enquiries that arrive fewer than

10 days before the tender deadline. If the contracting authority distributes replies to a

question which has arrived fewer than 10 days before the tender deadline, the tender

deadline will generally be extended correspondingly.

2.10 Freedom of information

In respect of public access to tenders and procurement protocols, Act No. 16 of 19 May

2006 relating to the right of access to documents held by public authorities and public

undertakings applies. Confidential information will be exempt from public disclosure.

Access may also be restricted pursuant to the Freedom of Information Act chap. 3.

2.11 Duty of confidentiality

The contracting authority and its employees are obliged to prevent others gaining access

to or knowledge of information about technical facilities and procedures or operational and

commercial matters that will be important for competitive reasons to keep secret in respect

of what the information concerns.

The Public Administration Act's other rules concerning confidentiality also apply.

2.12 Provisions concerning transfer of ownership

Pursuant to the Professional Transport Act § 8, 2nd para., the competition is subject

to the rules in the Working Environment Act §§ 16-2 to 16-7, concerning the rights of

employees in the event of transfer of ownership.

The contracting authority shall inform those wishing to participate in the competition about

how many employees the present licensee has linked to the root production that the

competition relates to, along with their ages, seniority and pay and working conditions.

Information about the above may be obtained by contacting the contracting authority no

fewer than 10 days before the tender deadline. The order worded thus: "Viser til

konkurranseutsetting av kystruta Bergen-Kirkenes. Jeg ber om oversikt over ansatte hos

nåværende løyvehaver." is to be sent by e-mail to: [email protected].

2.13 Cancellation of the competition etc.

The contracting authority may cancel the competition with immediate effect in the case of

a justifiable reason.

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The contracting authority may reject all the tenders if the outcome of the competition

reasonably justifies this.

2.14 Choice of tender

The contracting authority reserves the right to choose freely between the tendered

alternatives. The choice will be made on the basis of an assessment of the price level of

the different alternatives compared with the differences in frequency the various

alternatives represent. Once an alternative has been selected, the contracting authority will

choose the tender that offers the lowest price for the entire contract term (at 2011 prices).

The agreed remuneration will be stated exclusive of value-added tax.

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3. REQUIREMENTS REGARDING LICENCE APPLICANTS' QUALIFICATIONS

3.1 General considerations

Below are set out requirements for the suppliers in order to ensure fulfilment of the

legal requirements for licences, and that the suppliers are suitable for fulfilling the

contract. How the requirements are to be documented is described in the provisions

below and in annexes B, F and L.

If two or more suppliers wish to submit a tender jointly, the contracting authority assumes

that the suppliers personally satisfy themselves that this is not contrary to the rules in

the Competition Act No. 12 of 5 March 2004.

3.2 Organisational conditions

Requirement:

The licence applicant shall be a legally established enterprise.

Documentation requirement:

Norwegian enterprises shall attach a certification of registration. The contracting

authority reserves the right to obtain details from the Brønnøysund registers. For

licence applicants applying on behalf of companies in the process of being founded,

a memorandum of incorporation shall be attached.

Foreign enterprises shall attach evidence that the enterprise is registered in a sectoral

register or register of enterprises as prescribed in the legislation of the country where

the supplier is established.

Requirement:

The licence applicant shall have a functioning HSE system.

Documentation requirement:

The licence applicant shall provide self-certification of the company's HSE activities.

Requirement:

The licence applicant shall be of good repute.

This requirement is not considered to be fulfilled if the applicant:

a) has been deprived of the right to engage in business, or

b) has been sentenced for a serious offence, including in the commercial domain, or

c) has been sentenced for serious violations of applicable provisions concerning drivers,

driving and rest periods, commercial vehicles' weight and dimensions, traffic and vehicle

safety, pay and working conditions within the transport profession and environmental

regulations.

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For further information, see the Regulation on Professional Transport by Motor Vehicle and

Vessel § 6 and § 10, and the Regulation on Tendering for Local Public Transport § 16 c).

Documentation requirement:

The licence applicant shall attach a police certificate not older than three months.

The police certificate shall be issued for the managing director if the applicant is a legal

person.

Requirement:

The licence applicant shall be approved for safety management.

Documentation requirement:

In annex B, the licence applicant shall provide a declaration that the applicant has a valid

Document of Compliance (DOC) for safety management.

3.3 Experience of the carriage of passengers

Requirement:

Key persons employed by the licence applicant shall have adequate experience of

the carriage of passengers at sea.

Documentation requirement:

The licence applicant shall complete a list of relevant experience as specified in annex F.

3.4 Financial and accounting conditions

Requirement:

The licence applicant shall have the satisfactory financial capability to undertake the assignment.

Documentation requirement:

The licence applicant shall attach a warranty statement (a declaration of acceptance from a bank/insurance company is sufficient until signing of the contract) in accordance with the Regulation on Professional Transport by Motor Vehicle and Vessel § 7. This means that a warranty statement for NOK 77 000 must be provided for the first vessel in Norway. A warranty of NOK 43 000 shall be provided for each individual vessel in service beyond this.

The licence applicant shall produce a declaration of acceptance from a

bank/insurance company concerning security for its contract obligations.

The security shall be provided without undue delay after signing of the contract,

and within one month at most; see item 4.8 in the tender specification. The security

shall constitute 15% of the state's annual procurement at any time.

A credit assessment/rating which is not older than one year based on the last known accounting figures. A rating shall be performed by an accredited rating institution.

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If the supplier has valid reasons for being unable to produce a credit assessment,

he may declare his economic and financial situation using any other document

acceptable to the contracting authority.

The licence applicant shall attach a certificate from the register of bankruptcies that the company is not in bankruptcy proceedings etc.; see annex B.

3.5 Status of tax payments and VAT payments

Requirement:

The licence applicant shall not have significant overdue, unpaid, fee, duty or tax arrears.

Documentation requirement:

Tax certificate and VAT certificate not older than three months.

A tax certificate and certificate of VAT paid is to be issued either by the local tax office

or the tax collection office where the supplier has his head office. See:

(http://www.skatteetaten.no/Templates/Artikkel.aspx?id=9196&epslanguage=NO)

Licence applicants with company addresses in other countries shall produce equivalent

certificates. If the licence applicant's home country does not issue such certificates, they

can be substituted with a declaration from a judicial or administrative authority in the

country of domicile or present country of establishment. The certificates or declarations

must be in Norwegian or English. Any certificates in another language shall be

accompanied by an authorised translation into Norwegian.

3.6 Accounting separation

Requirement:

For licence applicants who plan to perform other activities using the same vessels as

are used in connection with the public procurement, accounting separation is required.

The requirement for accounting separation will also apply if other activities are performed

by the shipping company without using the same vessels as for the public procurement.

Documentation requirement:

The licence applicant shall certify the above by issuing a declaration; see annex L.

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4. INFORMATION ABOUT THE ASSIGNMENT AND REQUIREMENTS SPECIFICATION

4.1 General

The assignment applies to the procurement of maritime transport services for the Bergen-

Kirkenes route. The present operator informs that, based on the existing schedule

(excluding sailing to Geiranger), the distance Bergen-Kirkenes-Bergen totals 4900 km;

see annex K Sailing distances. The assignment is advertised for a period of eight years,

as three alternatives:

Alternative 1: Daily sailing throughout the year to 34 ports

Alternative 2: Sailings 7 days a week in summer (8 months), 5 days a week

in winter (4 months), to 34 ports

Alternative 3: Sailings 5 days a week throughout the year to 34 ports

The competition is announced with a commencement date no later than 1 January 2013.

Tenderers are requested to advise the earliest possible commencement date.

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4.2 Key information about the procurement

The state shall procure maritime transport services for the Bergen-Kirkenes, Kirkenes-

Bergen route and to 32 intermediate ports for a period of 8 years, commencing no later

than 1 January 2013. The state currently procures maritime transport services from

Hurtigruten ASA for an equivalent route. Annexes H, I, J and K contain statistics for

the existing production.

Annex H Schedule shows the schedule for the existing production. The public procurement

does not include sailings to and from Geiranger.

Fares for port-to-port passengers shall be approved by the contracting authority.

An approved tariff is taken to be the normal fares tariff that applied on signing the

contract for the period 2005-2012 for the Bergen-Kirkenes coastal route, i.e. the tariff as

at 1 October 2004, adjusted in line with the Retail Price Index for the period May 2004 –

May 2010 (13.7%); see also chap 5 Draft contract, § 4-3 for fare adjustments, discount

schemes etc. The tariff is the maximum fares tariff. Under the existing contract, this has

not been fully utilised by the supplier.

Welfare discounts apply to travel tickets for port-to-port passengers. For cabins, freight

transport and any other products, there is full freedom to set fares.

The normal fares tariff as at 1 October 2004 is attached (annex I).

Statistics for production in the present contract period (for 2005-2009) appear in annexes

J1, J2 and J3. Annex J1 shows the total number of passengers from and to the individual

ports, while annex J2 shows the total number of passengers broken down as port-to-port

passengers and other passengers (package tours). The public procurement applies to

port-to-port passengers. For definitions of "port-to-port passengers" and "other

passengers", see chap. 5. Draft contract, § 2. Statistics for freight are shown in annex J3.

Hurtigruten ASA informs that in the attached statistics a round trip is always a journey that

goes into both Bergen and Kirkenes (typical examples: Bergen-Kirkenes, Kirkenes-Bergen

and Bergen-Kirkenes-Bergen). This probably means that port-to-port passengers are over-

reported in the attached statistics in that some "other passengers" appear to have been

reported as "port-to-port passengers".

It is further noted that any extra sailings, such as for example the current sailings to/from

Geiranger, are not part of the public procurement, and that such extra sailings are

therefore counted in their entirety as other activities performed using the same vessels as

for the public procurement.

4.3 Ports, sea routes and navigational certificates

The licence applicants must familiarise themselves with port conditions and sea routes,

and produce certificates for the waters and vessels in question. The minimum

requirements are that the vessels meet the requirements for "small coasting".

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4.4 Vessels

4.4.1 Information about the vessels

The contracting authority does not require more detailed identification of vessels in

the tender. Licence applicants shall however confirm that the tendered vessels will meet

requirements defined in the tender specification. This shall be confirmed in the tender

form.

In good time before commencement, the licensee shall produce documentation of which

vessels shall be used, and confirm that they correspond with the tender. Technical data for

vessels in the tender shall then be provided in annex G.

4.4.2 Safety Management Certificates

The vessels shall have valid Safety Management Certificates (SMCs). The safety

management systems for the vessels shall at least comply with the ISM code adopted by

the UN's International Maritime Organization (IMO) and the latest accompanying

guidelines on implementation of the ISM code.

4.4.3 Insurance

By operational commencement, the licensee shall have taken out P&I insurance from a

club associated with The International Group of P&I Clubs, as well as hull insurance.

The combination of P&I insurance and hull insurance shall cover the licensee's liability to

third parties, including passengers.

4.4.4 Transport capacity and passenger certificate

The following minimum transport capacity requirements per

vessel are defined: Passenger certificate: 320

Berth capacity: 120

Freight capacity Tromsø-Kirkenes: 150 euro pallets in a cargo hold with a normal load height

4.4.5 Passenger facilities

Facilities for passengers shall as a minimum comply with the Regulations of 2 October

1972 No. 4 concerning calculation of number of passengers and concerning passenger

accommodation etc.

The ships shall have satisfactory dining facilities for port-to-port passengers. This means

as a minimum a cafeteria serving hot and cold dishes.

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4.4.6 Accessibility

The vessels shall satisfy the requirements for accessibility and adaptation for persons

with reduced mobility in Directive 2003/24/EC, Annex III or in the Regulations concerning

surveys, construction and equipment of passenger ships engaged on domestic voyages

of 28 March 2000, No. 305. Vessels constructed before 1 October 2004 shall satisfy the

recommendations as far as is reasonably and practicably achievable in financial terms.

Otherwise, for new vessels, the requirements concerning universal design in the

Regulations concerning the construction of passenger ships, cargo ships and lighters of

15 September 1992 No. 695 shall be followed.

In addition the following requirements apply to new vessels:

• The use of contrasting colours shall be implemented in all parts of the vessel to which passengers have access.

• Control buttons within and outside lifts shall be identified using Braille.

• Lifts shall be equipped with voice announcements. The size of the lifts shall be at least

140 x 160 centimetres, and they shall have automatic doors with a passage width of at

least 110 centimetres.

• The vessel shall have toilets adapted for disabled persons. For these toilets, the following amplifications apply beyond MSC/Circ.735:

a. Height of the toilet bowl: 50 cm.

b. The front of the toilet must be at least 85 cm from the back wall.

c. Folding armrests on both sides must extend as far as the front of the toilet

bowl. A toilet paper holder must be fitted to one armrest.

d. The turning space in front of the toilet must have a minimum diameter of at least 150 centimetres.

e. In the case of outward opening doors for these toilets, an extra closing handle

must be fitted to the inside of the door, on the hinge side, 0.85 m above the deck.

• The vessel shall be equipped with facilities on board for communicating messages visually

and verbally, for example concerning delays, route changes and services on board.

• Information concerning schedules and fares on board must have a minimum type size of 14 points.

• Induction loops must be fitted in all lounge areas and counter induction loops must be

fitted at all service counters.

• Doors connecting to passenger areas must as a minimum have an interior frame width

of 0.8 metres. The doors must be equipped with automatic door openers, including push

buttons.

• There must be stepless access to all the ship's passenger areas within each deck.

• In addition to what is stated in MSC/Circ. 735, contrast marking shall also include contrasting colours between floors and walls in passenger areas.

• Stairs shall have handrails at two heights: 0.7 m and 0.9 m above the step's front edge

on each side of the stairway.

For existing vessels, the same requirements apply as for new vessels, with the exception

of the requirement concerning lift sizes and amplifications beyond MSC/Circ. 735 for

disabled toilets. When fitting new disabled toilets on existing vessels, the same

amplifications to MSC/Circ. 735 apply as for new vessels as far as is practicably

achievable in financial terms.

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4.4.7 Flag state

For vessels not flying the Norwegian flag, a declaration must be issued well before

commencement that the Norwegian Maritime Directorate's requirements for the trade area

in question are satisfied. The declaration shall be issued by a classification society

recognised by the Norwegian Maritime Directorate and included with the ship's certificates.

The declaration shall be kept up to date throughout the entire contract term and is to be

considered as a supplement to the flag state's certification.

4.5 Crew

For passenger ships on regular service between Norwegian ports, the personnel who shall

instruct passengers in emergencies must have good command of English and a

Scandinavian language. Personnel who shall assist passengers in emergencies must be

able to be readily identifiable; see Regulation of 9 May 2003 No. 687 concerning

qualification requirements and certificate rights for personnel on board Norwegian ships,

fishing vessels and mobile offshore units.

4.6 Route schedule

A route schedule (timetable) is required to be prepared for all submitted tenders, with starts

and stops in Bergen and Kirkenes, and port calls at the 32 intermediate ports both

northbound and southbound, with the exception of Vadsø where a port call is only required

northbound (as in the existing timetable). For the alternatives with five-day schedules,

departures are required on fixed days of the week.

The present timetable for the coastal route is annexed to the tender specification for

information purposes (annex H).

It is specified that the public procurement does not include sailing to/from Geiranger;

see chap. 4.2.

4.7 Services and information for travellers

The licensee shall provide travellers with satisfactory information about schedules, fares,

statutes etc. In the event of cancellations and operations disruptions, the supplier shall

appropriately provide affected parties with necessary information as early as possible,

see § 4-1, item 4 in the draft contract.

The contracting authority presupposes that the licensee attaches importance to service

and excellent customer care. The crew should be readily identifiable. Extra services shall

be provided to persons with special needs.

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4.8 Provision of security

The licensee shall at his own expense furnish combined security for his contractual

obligations, interest on arrears and recovery costs in the event of a breach. The security

shall be provided without undue delay after signing of the contract, and within one month

at most.

The security shall be provided as a surety by a bank, insurance company or other credit

institution. Security may also be provided by a warranty sum placed in an escrow account

for the benefit of the contracting authority. The warranty shall not be terminated within six

months of expiry of the contract unless otherwise agreed by the contracting authority.

The guarantor's warranty shall be directly for the benefit of the other party, and shall be

unrestricted except as ensues from the present provisions.

The security shall constitute 15% of the state's annual procurement at any time.

4.9 Reporting

4.9.1 Statistics

Statistics shall be submitted electronically in accordance with rules laid down by the contracting authority.

As a minimum, the licensee shall report travel statistics, freight statistics and production

statistics for each quarter and each year; see annex E.

If the licensee operates other activities using the same vessels as for public procurement

of maritime transport services for the Bergen-Kirkenes coastal route, as a minimum

systematic solutions shall be established for ongoing registration of statistics for the

different passenger segments, classified as passengers within the public procurement

(port-to-port passengers) and passengers outside of the public procurement (other

passengers). It shall be possible to report relevant and objectively verifiable journey

information and turnover (tickets) per passenger segment.

Extra sailings, such as for example the present sailing to and from Geiranger in the

summer season, shall be reported in their entirety as outside of the public procurement.

Traffic data shall be reported for freight traffic respectively north and south of Tromsø.

Deviations in productions shall be reported to the contracting authority by the 15th of the

following month.

The contracting authority and licensee shall jointly prepare routines for such reporting.

4.9.2 Accounting reporting and control measures

The accounts shall be submitted in an approved format and within deadlines

pursuant to rules set out by the contracting authority.

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As a minimum, the licensee shall submit accounts for each quarter and each year; see annex E.

Accounting separation

An overall account for the shipping company and an overall account for activities on the Bergen-Kirkenes coastal route shall be submitted.

If the licensee operates other activities using the same vessels as for public procurement

of maritime transport services for the Bergen-Kirkenes coastal route, as a minimum

accounting separation shall be established, preferably in combination with administrative

separation between them. A separate account shall then be submitted for the public

procurement contract for the Bergen-Kirkenes coastal route. In this context, the licensee is

required to have a system for the ongoing registration and reporting of accounting data

and other statistics which make it possible to report in accordance with the accounting

separation and to verify reports and accounting entries.

The purpose of a requirement for accounting separation is to ensure predictability of which

cost additions/savings/extra revenues/shortfalls form the basis of any renegotiations in line

with § 6 or § 7 of the contract during the contract term, and to be able to document that the

public procurement does not entail unlawful cross-subsidisation or unlawful public support.

Accounting separation for the coastal route is taken to mean that, as a minimum, it shall be

possible to produce a statement of profit and loss for the public procurement in which the

principles set out in annex C are followed in respect of the allocation of revenues and

costs. The proportion of shared costs which are allocated to the public procurement, and

the principles for this allocation shall be explicitly set out and the same allocation keys shall

be applied consistently for the duration of the contract term. The allocation keys must be

verifiable, objective and robust.

Control measures

The licensee's annual report shall be subject to an audit. In those cases where there are

not separate normally-audited accounts, the accounts shall be audited to a standard

determined by the contracting authority. The auditor shall also confirm the level of cross-

subsidisation, any changes in principles and their effect, and the accuracy of underlying

information, including passenger statistics.

The licensee's annual report for accounting separation shall include:

a) A statement by management confirming that the reporting is consistent with

the requirements for accounting separation.

b) A statement from management concerning the principles applied in preparing accounting separation, any changes to accounting principles and/or other changes that affect comparability with previous years.

c) A statement from management concerning the completeness and validity of

the data that are not already evident from the audited financial accounts used in

preparation of the report for the accounting separation, including passenger

statistics.

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d) A report by the auditor in accordance with standards set out by the contracting authority.

The licensee shall provide the contracting authority on demand with any relevant

information of an accounting or operational nature for verifying the licensee's contractual

performances. The same applies if this is demanded by the Office of the Auditor General or

the ESA.

The contracting authority may initiate a tax audit or other control measures at its

discretion at the licensee's premises or on vessels.

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5. DRAFT CONTRACT FOR THE PROCUREMENT OF SERVICES ON THE BERGEN-KIRKENES COASTAL ROUTE

§ 1 Introduction

Based on open competitive bidding performed for the procurement of maritime transport

services for the Bergen-Kirkenes route, on the basis of a tender submitted on xxx,

a contract has been signed with xxx (company).

The following documents form part of the contract:

a) the contract (this document)

b) any amendments, clarifications or addenda by the contracting authority

before expiry of the tender deadline

c) the tender specification, including annexes

d) minutes and other written material from explanatory discussions, or negotiations

where permitted and which have been approved by both parties

e) the licensee's tender

In the event of any discrepancy between the documents, they apply in the above-mentioned order.

§ 2 Definitions

The "contracting authority"

is the Ministry of Transport and Communications

The "supplier"

is XX

The "tender specification"

is the tender specification announced on Doffin on XXX

with clarifications dated xx.xx.xx.

The "normal tariff"

is the tariff for passenger fares for port-to-port sailings that

applied on 1 October 2004, adjusted in line with the Retail

Price Index.

"Port-to-port passengers"

are passengers who buy tickets for travelling on a chosen route in accordance with the normal tariff with any supplement for cabins and/or meals at their option. Prices for supplementary services must correspond to published prices for the selected standard of cabin and meal. The overall price must in such cases equal the sum of the ticket price and individual prices of the selected supplementary services.

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”Other passengers”

are those other than port-to-port passengers, i.e. passengers who purchase travel products for specific routes, defined by the supplier, and which include at least one overnight cabin stay and at least one meal on board, where the supplier has published a combined price for the items included and which cannot be broken down into the individual published prices for the same items, including that the passengers will not be entitled to defined discounts on the travel component of the product. Other passengers also includes those purchasing a travel product, defined by the supplier, with at least the above-mentioned supplementary services at a combined price, specified per day but where the passengers themselves select the route where these conditions apply.

§ 3 Contract term/Licence

This contract is valid for a period of eight years from xxxx, expiring on xxxx.

The term of the contract is contingent on the Norwegian parliament's annual allocation to

cover the state's payment (see § 5-1).

The Ministry is entitled to extend the contract by up to 1 year. Any extension must be

notified in writing to the supplier no later than 1 year before expiry of the contract term

in accordance with the first para.

The contracting authority undertakes not to sign contracts with other parties for the

purchase of similar services on the Bergen-Kirkenes route during the contract term,

as long as the coastal route is in ordinary operation.

In accordance with the tender specification, the supplier is awarded a licence for maritime

transport for the Bergen-Kirkenes route, valid for the contract term. In the case of an

extension, the duration of the licence will be correspondingly extended.

For the duration of the contract term, the supplier shall fulfil the requirements for holding a licence. Any revocation of the licence under § 29 of the Professional Transport Act renders the contract void.

§ 4 The supplier's obligations

§ 4-1 Route production requirements

1. Description of the selected alternative.

2. On the Bergen-Kirkenes-Bergen route with intermediate stops, ordinary carriage of

passengers port-to-port shall be provided, with calls northbound and southbound.

For the Tromsø-Kirkenes-Tromsø route, freight transport shall also be provided.

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3. Omission of up to 10 days of operation in agreed production per ship per annum due to planned maintenance and unforeseen operational disruption linked to the agreed production (off-hire) is considered to be proper fulfilment and shall not entail a deduction in the agreed remuneration in accordance with § 9-2. Unused off-hire may not be carried over from one year to the next.

4. Schedules must at all times be approved by the contracting authority; see § 28 of the Professional Transport Regulation. Schedules and fares shall be published; see §§ 28 and 29 of the Professional Transport Regulation. In the event of cancellations and operational disruptions, the supplier shall appropriately provide affected parties with necessary information as early as possible.

§ 4-2 Capacity and vessel requirements, employees' rights etc.

1. Vessels used on the coastal route shall as a minimum have passenger capacity for

320 passengers, berth capacity in cabins for 120 passengers, and freight capacity

for 150 euro pallets (in a cargo hold with a normal load height). The vessel must

have passenger facilities which include refreshment facilities for passengers.

2. Back-up vessels may only be used when a main vessel (see annex G of the tender

specification) is not operational. Any back-up vessel must fulfil at least 80% of the

capacity requirements. In addition to the capacity requirements, back-up vessels

must fulfil the vessel requirements.

3. Vessels used must have valid certificates for the trade areas in question, and must

be classified by a specified classification society; see the tender specification, item

4.4 Vessels.

4. Vessels must have a valid Safety Management Certificate, and be operated by a

shipping company with a valid certificate of approval for safety management; see

tender specifications 4.4.2 and 3.2.

5. The vessels must satisfy the accessibility requirements; see item 4.4.6 of the

tender specification.

6. There is a requirement for P&I insurance and hull insurance; see 4.4.3 of the

tender specification.

7. A flag state declaration is required for vessels with non-Norwegian flags; see item

4.4.7 of the tender specification.

8. The crew must have competence and safety training in accordance with the

Norwegian Maritime Directorate's rules for the trade area and the requirements

defined in the tender specification; see items 4.5 and 4.7 of the tender specification.

9. The supplier undertakes to ensure that the employees directly working to fulfil the

contract have pay and working conditions that are not less favourable than ensues

from applicable national tariff agreements or which are otherwise normal for the

location and profession in question. A corresponding obligation also applies to

subcontractors.

§ 4-3 Fare and discount requirements

Maximum fares for port-to-port passengers must be approved by the contracting

authority. Approval is taken to have been granted for the normal fares tariff that applied

on the Bergen-Kirkenes coastal route on 1 October 2004, adjusted in line with the Retail

Price Index. Subsequent fare changes to the normal tariff must be approved by the

Ministry.

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The supplier has full freedom to accept lower fares. Fare changes to the normal tariff within

recent adjustments in the Retail Price Index may be taken to be approved. Similarly,

acceptance may be anticipated for increasing fares on a seasonal basis (seasonal

surcharge) by up to 10% relative to the normal fares level for the current year.

For other passengers, the shipping companies have full freedom to set fares. The same

applies to cabin and meal prices and freight transport.

For port-to-port passengers, discount schemes shall be offered, calculated as

percentages of the normal fares tariff (including any seasonal surcharge) as follows:

- Children between 4 and 15 years of age are entitled to 50%. Children under 4

travel free if they do not occupy their own berth.

- Seniors' discount of 50% is granted to persons aged 67 and above, and the same discount to blind and disabled persons. The same discount is granted to spouses/cohabitants travelling together and registered partners, regardless of age.

- Companion discount: Companions travel free when the person whom he/she is

accompanying is able to produce a companion card issued by their local authority.

- People on military service are granted a 50% discount for journeys undertaken

during their period of service. The discount does not apply to officers or to

journeys made to attend the initial service.

The above-mentioned discount schemes may not be combined, except that the

companion discount applies even if a person with a companion certificate is entitled to

a discount on their own account.

§ 4-4 Accounting and other reporting requirements

1. The supplier shall supply statistics and accounting reports in accordance with

forms laid down by the contracting authority; see item 4.9 in the tender

specification.

2. If the supplier operates other business outside of this contract:

a) separate accounts and production statistics shall be submitted in accordance

with the tender specification, chap. 4.9.

b) a management report shall be submitted in accordance with the requirements

in the tender specification, chap. 4.9.

c) an audit verification shall be submitted in accordance with specifications laid down by the contracting authority.

3. Reporting shall be made in accordance with deadlines determined by the contracting authority.

4. Before commencement, the supplier shall produce a description of the systems

for ensuring that the requirements in items 1 and 2 are fulfilled. The Ministry shall

approve this documentation. In the absence of such approval, the Ministry may

require the commencement to be deferred until adequate documentation can be

produced.

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5. The supplier shall provide the contracting authority on demand with any relevant

information of an accounting or operational nature for verifying the execution of

the contract. The same applies if this is demanded by the Office of the Auditor

General or the ESA.

6. The contracting authority may initiate a tax audit or other control measures at its

discretion at the supplier's premises or on vessels.

7. The supplier undertakes on his own initiative to inform the contracting

authority of material changes in organisation, management and

ownership.

§ 4-5 Requirement for provision of security

The supplier shall provide combined security for his fulfilment of this contract. The

security shall cover any remedies for breach and recovery costs associated with the

contract. The security shall constitute 15% of the state's annual procurement at any time.

The security is to be provided as an unconditional guarantee from a bank or insurance

company, or placed in an escrow account. The security or deposit shall be for the benefit

of the contracting authority, and shall not be terminated during six months after expiry of

the contract unless otherwise agreed by the contracting authority.

§ 5 The contracting authority's obligations

§ 5-1 The contracting authority's remuneration

The contracting authority shall pay for the service for each individual year as follows: Xxx

The figures stated are in 2011 prices.

The agreed compensation for the individual years is made subject to the Norwegian

parliament making available the necessary amounts through the annual budget

decisions; see § 3.

Agreed remuneration excludes value-added tax.

§ 5-2 Price adjustments

Agreed remuneration stated in 2011 prices shall be price-adjusted in accordance with

Statistics Norway's cost index for domestic sea transport - sub-index for ferries, with a

fixed component. Projected calculations shall be based on average changes in the index

for the last 12 months up to 5 February of the year prior to the adjustment date.

Accordingly, the price adjustment for 2012 will be based on changes measured in the

period 2010 to 2011 etc. If the above-mentioned cost index is not available, Statistics

Norway's Retail Price Index will be used.

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§5-3 Payment of the remuneration The remuneration shall be disbursed monthly, with a due date of the 1st day of the month.

§ 6 Changes in production during the contract term

During the contract term, both parties may request negotiations concerning changes in

production. The change must not be considered to be significant and may entail an

increase or reduction in production, changes in quality and capacity requirements and the

addition or suppression of individual port calls. The change may apply to the remainder of

the contract term or for a shorter period. Remuneration shall be adjusted in accordance

with cost and revenues ensuing from the change. The allocation of costs and revenues

shall be based on accounting separation; see § 4-4, items 1 and 2.

§ 7 Renegotiations

In the event of amendments to acts, regulations or statutory orders which the parties could

not have reasonably foreseen on signing the contract and which entail material extra costs

or savings for the contract for the public procurement of the service, each of the parties

may demand negotiations concerning extraordinary adjustment of the remuneration from

the contracting authority, a change to production or other measures. In such cases, the

counterparty is entitled to all necessary documentation. Accounting separation shall form

the basis of any renegotiation of the contract; see § 4-4.

§ 8 Force majeure

Force majeure occurs when one of the parties is prevented from fulfilling the contract due

to factors outside of his control, such as war, terrorism, extraordinary weather conditions,

statutory injunctions and prohibitions, general strikes and lock-outs. The list is not to be

considered exhaustive but must be taken as guidelines for what may be considered to be

force majeure. Impediments which the party should have taken into consideration in

signing the contract or could reasonably be expected to avoid or overcome the

consequences of, are however not considered to be force majeure. If one of the parties

fails to fulfil the contract due to force majeure, the party is exempt from liability to pay

compensation and liquidated damages. In such cases, the other party is however relieved

of his contractual obligations which correspond to the non-performance of the other party's

services. Any cancelled production ensuing from force majeure shall not be considered as

a non-conformity in the production under § 4-1, item 3.

§ 9 Breach by the supplier

§ 9-1 Breach

A breach occurs if the service is not performed in compliance with the requirements set

out in the contract; see § 4.

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§ 9-2 Non-performance in production

In the event of non-performance in production, including omitting a port call, remuneration

for the vessel(s) will be withheld for the period during which the non-performance

persists. Each omitted port call corresponds to 1/6 day. In addition, liquidated damages

will be applied for twice the agreed remuneration per vessel for the period during which

the non-performance persists.

If a non-performance in production is due to gross negligence or is intentional, including

the supplier removing a vessel from service or deploying it for another activity, the

contracting authority may additionally claim compensation for losses suffered due to non-

performance in production. In lieu of a claim for compensation, the contracting authority

may require forfeit of the saving or earnings which the supplier achieved through such an

arrangement. In such cases, the contracting authority is entitled to examine all

information necessary for calculating the supplier's savings and earnings.

§ 9-3 Other breaches

If the supplier fails to fulfil other obligations under the contract the contracting authority

may require the circumstances to be remedied within a defined deadline. The contracting

authority shall set down the requirement for remedy in writing. The contracting authority

may stipulate that the supplier shall pay daily liquidated damages of 0.05 per mill of the

remuneration for the year in question until the circumstances have been remedied. The

liquidated damages accrue from the defined deadline and may only be applied if the claim

has been notified in writing.

§ 9-4 Termination

The contracting authority is entitled to demand cancellation of the contract in the event

of material breach. Material breach is taken to mean repeated breaches of obligations,

including non follow-up of repeated demands for remedy.

If the supplier becomes bankrupt or is demonstrably or by his own admission insolvent,

the contracting authority may require termination of the contract unless it is established

without undue delay that the contract will be completed in conformity with its terms and

conditions.

In the event of termination of the contract, awarded licences lapse. In the event a licence

is revoked, the contract is considered to be terminated.

§ 10 Breaches by the contracting authority

In the event of overdue payment of the agreed remuneration, the contracting authority

shall pay interest in accordance with Act No. 100 of 17 December 1976 relating to interest

on overdue payments etc.

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The contracting authority is entitled to offset monetary claims against the supplier due to

the supplier's breach under this contract.

The supplier is entitled to demand termination of the contract if the contracting authority is

in material breach of its obligations. It is considered a material breach when the

contracting authority repeatedly and following written notice from the supplier fails to fulfil

its obligations. The supplier shall set out a demand for termination in writing and fulfil his

obligations for at least one month after setting out the claim.

In the event of termination, the contracting authority shall pay the supplier compensation

for lost earnings which he would have made for the remaining part of the contract if it had

endured.

§ 11 Disputes

Disputes between the parties relating to this contract should be attempted to be resolved

by mutual agreement. If a dispute is unable to be resolved amicably, either of the parties

may bring legal proceedings. The legal venue of all proceedings arising from this contract

is the Oslo District Court.

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6. ANNEX A DOCUMENT LIST

Document To be submitted

with the tender

To be submitted well

in advance of

commencement

Annex A Document list

Annex B Tender form x

Annex C Accounting separation

Annex D Budget x

Annex E Accounts

Annex F Company details x

Annex G Technical vessel data x

Annex H Schedule

Annex I Normal fares tariff

Annex J Statistics

Annex K Sailing distances

Annex L Declarations x