NOIDA METRO RAIL CORPORATION LIMITED. Pre Bid Clarification. Tender No.: NMRC/Co-Branding/01/2018 Dated:

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1 OIDA METRO RAIL CORPORATIO LIMITED Pre Bid Tender o.: MRC/Co-Branding/01/2018 Dated: Request for Proposal (RFP): Co-Branding Rights at MRC tations Pre Bid Meeting: July 10, 2018 at the Board Room, oida Metro Rail Corporation (MRC) Limited, Ganga hopping Complex, ector 29, oida Advant IT Park Pvt. Ltd. Page 9, (b), cope of Co- Branding at MRC tations Does this mean complete package of Cobranding + Internal + External Advertising space? or Advant group is a major player in sector 142. Our building is the most prominent building in the area and the bus stop in front is also referred to as Advant stop. We have wanted to co-brand with the sector 142 metro station ever since the proposal of the station came out, and the reason for this is because we believe we have an iconic destination in the sector along with another 15 acre project coming in the same sector 142. As developers Co-Branding rights to name the station as tation name Brand shall be granted to the licensee from a separate bidding procedure only for Co-Branding rights. A separate bid shall be made for Internal and External advertisement rights at the selected station to design, procure / manufacture, install, manage, operate, maintain, market and sell advertising opportunities subject to the terms and conditions Existing Provision In addition to Co-Branding Rights to name the station as tation ame Brand, the Licensee shall be granted advertisement rights at the selected station to design, procure / manufacture, install, manage, operate, maintain, market and sell advertising opportunities subject to the terms and conditions specified in the License Agreement / o change - As per RFP Page 1 of 22

2 or advertising in the external and Internal areas are not, and therefore it does not make sense for us to bid for all disciplines (Co- Branding, internal advertising, external advertising). We request that this be taken into consideration, and separate bidding procedures be set up so that marketing agencies (for advertising), and developers (for cobranding) can both have a share. specified in the License Agreement. Existing Provision / 2. Advant IT Park Pvt. Ltd. Page 9, (c), cope of Co- Branding at MRC tations When License is granted for cobranding, why should that not be advertised through Audio announcements? When co branding a metro station, a major point to take into consideration is reaching out to the masses about our brand. In this capacity, audio advertisements are very important as they let the customers know where exactly they are going. Audio advertisement in the form of announcement of station along with Brand will be permitted. However, audio advertisement in any form is not permitted and there will be no change in MRC s station announcement / train announcement / notification / inside train name / or any other document due to Co- Branding of the station. o change - As per RFP Page 2 of 22

3 3. Advant IT Park Pvt. Ltd. 4. Advant IT Park Pvt. Ltd. Additional As per our understanding, advertising was only to be allowed for one brand in the entire metro station (in external areas). Is this actually the case? Or can multiple brands be advertised in one station at one point of time? Advertising for multiple brands to be allowed in the entire metro station (internal and external) Page 25, Escalation 4.2 (c), Information of the Technical and Financial Proposal or Even if we accept the fact that our company will have to buy rights for co branding and advertising, it does not make sense to give it to just one brand, whether that is for a developer such as us or even an advertising agency. Escalation rate of 10% is quite high. Advertising for multiple brands to be allowed in the entire metro station (internal and external) The License Fee quoted by the uccessful Bidder and accepted by MRC shall be escalated by 3% (Three Percent) annually i.e. in the beginning of every anniversary during the Agreement Period as per the terms and conditions Existing Provision ew The License Fee quoted by the uccessful Bidder and accepted by MRC shall be escalated by 10% (Ten Percent) annually i.e. in the beginning of every anniversary during the Agreement Period as per the / Externally only single brand is permitted. The License Fee quoted by the uccessful Bidder and accepted by MRC shall be 5% (Five Percent) Page 3 of 22

4 5. AH Infomedia Page 24, 4.1 (b), Eligibility Criteria / Data heet How many parties can be part of Consortium? or set out in the License Agreement Existing Provision terms and conditions set out in the License Agreement. In case of a Bid by a Consortium of firms, following shall be abided by their members: i. For the purpose of evaluation of the consortium, each member s contribution towards the turnover shall be considered in the same ratio of their equity participation in the consortium. (Illustration: ay If A and B are two members of Consortium. A is having 70% equity holding in Consortium / annually i.e. in the beginning of every anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. The members preferably should be two (2). However, in no case, it can be more than three (3). Page 4 of 22

5 or Existing Provision and B is having 30% equity holding in Consortium. In such a condition, 70% of A s total turnover and 30% of B s total turnover will be taken into consideration for evaluation of eligibility of the Consortium). ii. The Lead Member of the Consortium shall maintain a minimum percentage share of 51% of the aggregate shareholding of the Consortium during full tenure of License Agreement. iii. Any change in percentage stake of Consortium members without prior written approval of MRC shall be treated as Material Breach of Contract and Licensee s Event of Default entitling MRC to encash ecurity Deposit/Performance / Page 5 of 22

6 or Existing Provision ecurity and /or to terminate the License Agreement after 30 days notice. iv. Minimum percentage stake of any member in Consortium during license period (including lock-in period) shall not be less than 15%. v. Partners having less than 26% participation shall be considered as non-substantial partner and shall not be considered for evaluation which means that their eligibility shall not be considered for evaluation of Consortium. vi. All members of such entity shall be jointly and severely liable for the due performance of License agreement. / Page 6 of 22

7 6. AH Infomedia 7. AH Infomedia Additional Page 9, (c), cope of Co- Branding at MRC tations Can the highest bidder allowed to advertise for other brand on Outdoor sites. As advertising agency we can sell/ accommodate more than one party/ entity for outdoor advertising without any litigation or liability of / to MRC. Does these area includes the Civil tructure areas (Area of panels/ pillars in between two stations), FOB already constructed (Outside area like panels on FOB's allotted by OIDA in oida City). or ample Drawing of one station clearly indicated the areas may clarify the issue Existing Provision ew MRC shall provide tentative advertisement spaces inside and outside at the quoted rate at the selected station as tabled below... / Externally only single brand is permitted. Mentioned areas include internal as well as external surfaces earmarked for Co-Branding Rights. It is on walls, railings, columns, etc. Page 7 of 22

8 8. AH Infomedia Page 10, (v), cope of Co- Branding at MRC tations Any definition for this area & how many area for advertisement in % or ize (sqm) or Existing Provision Landscaping at MRC station to give aesthetic and pleasing appearance to the station / It is specific to the station location, subject to availability of space for landscaping and horticulture space. 9. AH Infomedia Page 10, 2.1.6, cope of Co- Branding at MRC tations Any Time Limit for same During the currency of the license period, the Licensee may be permitted to change the Brand name of the station, logo or modify the theme of the advertising inventory at its own cost after approval from MRC. However, it needs to be ensured that there is no obstruction for the passage to passengers and operations should not be affected in any manner thereon. To avoid frequent changes in the prefix/ suffix, of a brand name to the name of the metro station, a specific brand name may be retained and displayed for a period not less than six (6) months. Page 8 of 22

9 10. AH Infomedia 11. AH Infomedia 12. AH Infomedia Page 24, 4.1 (b), Eligibility Criteria Page 25, 4.1 (a) (ii), Eligibility Criteria Page 25, 4.2 (c), Information of the Technical and Financial Proposal The Financial Capacity to participate in Tender bid is too high & shall constrain a limited response. To generate higher revenues for MRC it should be Less than 2 crores or 2 times of the annual revenue expected from each station. Valid ITCC is not available/ applicable Escalation should be 10% after 3 years or 3% annually or The provision of Annual escalation in Annual license fee needs to be clarified. Existing Provision The Bidder should have minimum average annual turnover of IR 11 crores (Rupees Eleven Crores only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date per station. elf-attested copy of PA card of the company/firm; the GT registration and current valid ITCC (Income Tax) The License Fee quoted by the uccessful Bidder and accepted by MRC shall be escalated by 10% (Ten Percent) annually i.e. in the beginning of every anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. / The Bidder should have minimum average annual turnover of IR 1.5 crore (Rupees One Crore Fifty Lakh only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date for per station. elf-attested copy of ITR to be furnished The License Fee quoted by the uccessful Bidder and accepted by MRC shall be escalated by 5% (Five Percent) annually i.e. in the beginning of every Page 9 of 22

10 or Existing Provision / anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. 13. AH Infomedia 14. India Exposition Mart Ltd. Additional Page 27, 4.6.2, chedule of Payment Estimated footfall/ commuters as per DPR prepared by MRC -tation wise data Regarding Annual Escalation The provision of Annual escalation in Annual license fee needs to be clarified. chedule of payment: of RFP document stipulates 10% increase annually in Annual License fee. It is also says that Total license fee is equal to 10 times the Annual license fee. The payment schedule at A and B suggests schedule of yearly payment of Total license fee without any provision of escalation. ew The licensee is liable to pay to MRC the amount of Total License Fee which is equal to Ten times the Amount of Annual License Fee i.e. Total License Fee in ten years = 10 x Annual License Fee, with 10% (Ten Percent) escalation annually i.e. in the beginning of every anniversary during the Agreement Period. o additional sharable information The licensee is liable to pay to MRC the amount of Total License Fee which is equal to Ten times the Amount of Annual License Fee i.e. Total License Fee in ten years = 10 x Annual License Fee, with 5% (Five Page 10 of 22

11 or Existing Provision / Percent) escalation annually i.e. in the beginning of every anniversary during the Agreement Period. 15. Gamini Buildwell 16. Gamini Buildwell Page 24, 4.1 (b), Eligibility Criteria Page 25, 4.2 (c), Information of the Technical and The minimum average turnover to participate in tender bid is too much, it should be less than 1.75 crore. License fee escalation should be 10 % after 2 years. The Bidder should have minimum average annual turnover of IR 11 crores (Rupees Eleven Crores only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date per station. The License Fee quoted by the uccessful Bidder and accepted by MRC shall be escalated by 10% (Ten Percent) annually i.e. in the beginning of every The Bidder should have minimum average annual turnover of IR 1.5 crore (Rupees One Crore Fifty Lakh only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date for per station. The License Fee quoted by the uccessful Bidder and accepted by MRC shall be Page 11 of 22

12 Financial Proposal or Existing Provision anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. / escalated by 5% (Five Percent) annually i.e. in the beginning of every anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. 17. Global Advertisem ent India Page 9, (c), cope of Co- Branding at MRC tations Does these area includes the Civil tructure areas (Area of panels in between two stations), FOB already constructed (Outside area like panels which is also allotted by oida Authority) ample Drawing of one station clearly indicated the areas may clarify the issue, if possible kindly provide MRC shall provide tentative advertisement spaces inside and outside at the quoted rate at the selected station as tabled below Mentioned areas include internal as well as external surfaces earmarked for Co-Branding Rights. It is on walls, railings, columns, etc. Page 12 of 22

13 18. Global Advertisem ent India 19. Global Advertisem ent India Page 24, 4.1 (b), Eligibility Criteria Page 25, 4.2 (c), Information of the The minimum average turnover to participate in Tender bid is too high & more participant will not be able to participate in the bid. To generate higher revenues it should be Less than 1.5 crores or 2 times of the annual revenue expected from each station. Escalation of licence fees should be 10% after 3 years or Existing Provision Financial Capacity The Bidders competence and capacity is proposed to be established in terms of average annual turnover ( Average Annual Turnover ), the Financial Capacity. The Bidder should have minimum average annual turnover of IR 11 crores (Rupees Eleven Crores only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date per station. The License Fee quoted by the uccessful Bidder and accepted by MRC shall be escalated by 10% (Ten / Financial Capacity The Bidders competence and capacity is proposed to be established in terms of average annual turnover ( Average Annual Turnover ), the Financial Capacity. The Bidder should have minimum average annual turnover of IR 1.5 crore (Rupees One Crore Fifty Lakh only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date for per station. The License Fee quoted by the uccessful Bidder and Page 13 of 22

14 Technical and Financial Proposal or Existing Provision Percent) annually i.e. in the beginning of every anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. / accepted by MRC shall be escalated by 5% (Five Percent) annually i.e. in the beginning of every anniversary during the Agreement Period as per the terms and conditions set out in the License Agreement. 20. Lal & Co. Page 24, 4.1 (b), Eligibility Criteria Average Turnover criteria should be reduced to 1.50 crore per annum per station at par with other Govt. Organisation tender process. To ensure other Financial Capabilities MRC already asked 12 months ecurity Financial Capacity The Bidders competence and capacity is proposed to be established in terms of average annual turnover ( Average Annual Turnover ), the Financial Capacity. The Bidder should have minimum average annual turnover of IR 11 crores (Rupees Eleven Crores only) in the last 3 (three) Financial Years ( , , ) Financial Capacity The Bidders competence and capacity is proposed to be established in terms of average annual turnover ( Average Annual Turnover ), the Financial Capacity. The Page 14 of 22

15 21. oida Institute of Engineerin g and Technology (IET) Page 24, 4.1 (a), Eligibility Criteria Deposit & Advance Fees The Institute and ocieties /Trust should also be included among Bidders. or We want to participate in bidding process as an Institute run by ociety. Include the Institutes and ocieties /Trust among Bidders. Existing Provision preceding the Bid Due Date per station. ole proprietorship, registered partnership firm, public limited company, private limited company or Consortium of any of the above can submit the Bidder. The firms and the companies should be registered in India. / Bidder should have minimum average annual turnover of IR 1.5 crore (Rupees One Crore Fifty Lakh only) in the last 3 (three) Financial Years ( , , ) preceding the Bid Due Date for per station. o change - As per RFP 22. oida Institute of Engineerin g and Technology (IET) Additional The announcement and display inside train should include the Co Brands Being an educational institute we are not in business of subletting so a space inside the coach and announcement will be valuable for us. The space inside the Coach should be included by Co- Brands. ew o change - As per RFP Page 15 of 22

16 23. oida Institute of Engineerin g and Technology (IET) Additional If there is conflict of interest by any other agency provided space for commercial use. or There are such visible cased happened with DMRC where the rights of Co Branding organization are intruded by Commercial agencies which are provided space to operate their venture. The rights of the Co Branding organization will be saved. It should be clearly mentioned. Existing Provision ew / ot Applicable in this case. 24. Pioneer Publicity Corporation Page 27, 4.6.2, chedule of Payment License Fee, with 10%(Ten Percent) escalation annually The escalation of 10% in license fee annually is not feasible in such kind of Cobranding tenders as this is not a traditional outdoor media. There is a big difference between such type of media and the traditional media that is the convenience in selling of the product i.e. traditional media - unipoles, hoardings, bus shelters etc. are part of an inventory of almost every campaign run in pan India, either for fewer days or for annual display, the campaigns all over by every brand are entertained in their promotional budgets, whereas emi naming/cobranding rights concept though is an innovative product but is very hard to sell - considering an The licensee is liable to pay to MRC the amount of Total License Fee which is equal to Ten times the Amount of Annual License Fee i.e. Total License Fee in ten years = 10 x Annual License Fee, with 10% (Ten Percent) escalation annually i.e. in the beginning of every anniversary during the Agreement Period. The licensee is liable to pay to MRC the amount of Total License Fee which is equal to Ten times the Amount of Annual License Fee i.e. Total License Fee in ten years = 10 x Annual License Fee, with 5% (Five Percent) escalation annually i.e. in the beginning of every anniversary Page 16 of 22

17 25. Pioneer Publicity Corporation Page 9, (a), cope of Co- Branding at MRC tations The brand name shall preferably be not more than two words or association of a name with a station name, considering a minimum booking period of a year at a stretch, considering the budget on fabrication, prior commitment of the budget, approvals via MD-Chairman of the interested brands, what makes this product as hard to sell and hence escalation in license fee should not be there and this should be on a fixed annual fee for 10 Years. As per the RFP The brand name shall preferably be not more than two words. It is suggested that brand name of Three words with prior approval from MRC may please be permitted as this shall widen the client base by many times. In Delhi too some stations are being cobranded with three words. Existing Provision The Licensee will suffix/prefix the brand name with the ame of the station i.e. the selected station be listed as [XYZ [Brand ame]] or [[Brand ame] XYZ] ; wherein XYZ is the name of the selected station. The brand name shall preferably be not more than two words. Individual names of any person or religious entity, or of similar background shall not be permitted. Any such composite brand name may include the Co-Branding Partner s ame in / during the Agreement Period. o change - As per RFP Page 17 of 22

18 or Existing Provision conjunction with other words, subject to prior written approval of MRC. / 26. Pioneer Publicity Corporation Additional Tentative advertisement spaces inside and outside Tentative advertisement area outside and inside for each station has been provided in the RFP document. You are requested to kindly specify if the outside area shall only be used for co-branding of the client or the same can also be used to display advertisements of other clients as well. ew Externally only single brand is permitted. 27. Pioneer Publicity Corporation Page 12, (l), Utilisation of Premises and Plans Approvals Taking approvals from local authorities has been kept under licensee s obligation which is not justified. After paying heavy License Fee to MRC if the licensee has to deal with local authorities, it would be better to take media directly from the local authority then. In Delhi, DMRC takes care of dealing with Municipal Corporations and obtains all permissions and approvals. If any approvals are to be taken from any local authority for display of the advertisement, the same is the sole responsibility of the Licensee. MRC may assist the Licensee in the matter. o change - As per RFP Page 18 of 22

19 or Hence MRC has to take approvals and permissions from all local authorities. Existing Provision / 28. Pioneer Publicity Corporation 29. Pioneer Publicity Corporation Page 11, (vii), Factors governing selection of permissible advertisem ents Page 11, 2.1.8, Corporate ocial Responsibil ity (CR) Advertisement creative Corporate ocial Responsibility (CR) Taking prior approval from MRC for co-branding is fine but taking prior approval of creatives for inside media before display shall not be practical. This is not done anywhere in the country. MRC has already provided a list of negative advertisements and the licensee shall be asked to adhere to the same. Earmarking 5% of total advertising area should be kept only for inside advertisements and not for outside advertisement as the same may contradict the emi-naming/co-branding concept of the client. All advertisement creative has to be approved from MRC before display in metro premises. The Licensee shall have to earmark up to 5% of total advertisement spaces (inside and outside) at each station for carrying out social marketing activities or social messages by RMC. The cost for printing advertisements with regard o change - As per RFP o change - As per RFP Page 19 of 22

20 or Existing Provision to social marketing activities or social messages shall be borne by MRC. / 30. Jaiprakash Associates Limited Page 15, 3.1 (a), General Conditions Can the bidder quote for more than one station in single tender? Please Clarify A Bidder is eligible to submit only one Tender for the Project. A Bidder applying shall not be entitled to submit another Tender, as the case may be. Any Bidder, which submits or participates in more than one tender/proposal would be disqualified. A Bidder is eligible to submit Tenders for more than One tation. Yes As per RFP 31. Jaiprakash Associates Limited Page 17, (b), Documents constituting the e-bid Can the bidder quote for more than one station in single tender? Please clarify There shall be a single financial quote for each metro station for which the bid is submitted Yes As per RFP 32. Jaiprakash Associates Limited Page 25, 4.1 (a) (ii), Eligibility Criteria As per Govt. of India Circular o. 2/2004, dated no., ITCC, Income tax Clearance Certificate is not elf-attested copy of PA card of the company/firm; the GT registration and current valid ITCC (Income Tax) elf-attested copy of ITR to be furnished Page 20 of 22

21 since Copy of the circular is attached. or Existing Provision / In the light of this circular, we intend to submit Income Tax Return Acknowledgeme nt (ITR) for the last three financial years (Assessment Year , and ) 33. Jaiprakash Associates Limited Page 21, (b), Earnest Money Deposit In case the bidder quotes for two metro stations in single bid, can the bidder deposit IR 15 Lakh (2* IR 7.5 Lakh) in single EFT Transfer. Please clarify. Bidders submitting bids for more than one station shall be to submit EMD for each station as mentioned in Data heet for which bid is submitted. It is preferred to have separate EMD for each station. However, it can be combined as well. Page 21 of 22

22 34. Jaiprakash Associates Limited Page 73, Form 8: Power of Attorney Please clarify the value of stamp paper. or Existing Provision To be on non-judicial stamp paper of appropriate value as per tamp Act relevant to place of execution. / The value of stamp paper shall be IR 100. Place: oida GM (Technical), MRC Date: *Please ote The above clarifications shall supersede to all the respective provision in tender documents. Page 22 of 22