REVISED RFP for Selection of System Integrator for Providing. Web Based Solution for PDS Automation. RFP for PDS Automation Page 1

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1 REVISED RFP for Selection of System Integrator for Providing Web Based Solution for PDS Automation RFP for PDS Automation Page 1

2 BID DATA SHEET Particulars Tender Number Name of the Client Address and Concerned person for Correspondence Details Pungrain/NADS/PDSA/2FD(511)-2016 PUNGRAIN Anaj Bhawan, Sector 39 C, Chandigarh Cost of bid document Rs 5000 EMD / Bid Security Amount Rs 1,00,000 EMD Submission Date and Time Bid Submission Date and Time Date and time for opening of Technical Proposal Date and time for opening of Financial Proposal , 11:00 a.m. at Conference Room, First Floor, Anaaj Bhawan Sector 39-C, Chandigarh , 11:00 a.m. at Conference Room, First Floor, Anaaj Bhawan Sector 39-C, Chandigarh , 01:00 p.m. at Conference Room, First Floor, Anaaj Bhawan Sector 39-C, Chandigarh , 11 a.m. at Conference Room First Floor, Anaaj Bhawan Sector 39-C, Chandigarh RFP for PDS Automation Page 2

3 1 Executive Summary 5 2 Contents 2.1 Objectives of the RFP Area of work Number of Fair Price Shops under each of the Group FCS Automation Process Issuance of the commodities at FPS shop to the beneficiaries Scope of System Integration. 9 3 Instructions to the Bidders Availability of RFP Document Preparation and Submission of Proposal Completeness of Bids Language Preparation and Submission of Bid Late Bids RFP Validity Cost and Currency Interpretation of the clauses in the Tender document Amendment of Tender Document Deviations Earnest Money Deposit/ Bid Security Evaluation Methodology Tender Opening Tender Evaluation Failure to Agree with the Terms and Conditions of the RFP Eligibility Criteria Technical Qualification Criteria Financial Bid Evaluation Selection of the Bidder Confidentiality Scope of Work Web Based Application (Build-Own-Operate Model) Implementation Schedule Support Service Level Agreements and Payment Schedules Payment Schedules Payments Service Level Agreement Penalties 20 7 Signing of Contract RFP for PDS Automation Page 3

4 7.1 Performance Bank Guarantee (PBG)/ Security Deposit Validity period/duration of the engagement Taxes and Duties Transfer / Sub-Contracting Completeness of Contract Suspension & Termination of System Integrator Amendment Corrupt / Fraudulent Practices Resolution of Disputes Legal Jurisdiction Indemnity Publicity Performance Obligations Force Majure Right to terminate the process Annexure I: Flow Chart of Process Supply Chain Management Flow Chart Annexure II Technical Proposal Formats Covering Letter Check List for Technical Proposal Statement of No Deviation from the RFP Requirements Self-declaration for not being blacklisted by any Government Entity Relevant Project Experience Web Application provided in the last 3 financial years (FY , , ): Experience of providing web applications for Government/ PSU/ Private Sector projects in India with project value greater than 1.00 crores Compliance sheet for Technical Specification Format for queries Annexure III: Financial Proposal Formats Covering Letter for Financial Proposal Financial Proposal Format of Performance Bank Guarantee (PBG) RFP for PDS Automation Page 4

5 Executive Summary Department of Food, Civil Supplies and Consumer Affair, Punjab, seeks for an end-to-end FPS automation solution. Currently, FPS level transactions are being conducted manually in the state and now there is a need to move a step ahead with full automation at the FPS level. Department of Food, Civil Supplies and Consumer Affair, Punjab wishes to implement FPS automation on a Build-Own- Operate (BOO) mode through its implementation agency PUNGRAIN. The System Integrator is required to provide FPS automation as a service and engage on a Build-Own-Operate (BOO) basis. By BOO, it is meant that the selected private partner shall provide and customize the application, for FPS automation. It should include the modules like receive of information from PoS devices, development and customization of application as per Rupay Model described through a Flow chart in this document for distribution of foodgrains as well as complete Supply Chain Management, Maintenance of application, Training, Helpdesk Support and MIS etc. 2. Introduction The Department of Food, Civil Supplies and Consumer Affair, Punjab is in process of transforming their existing processes/services with the use of latest technologies towards identification and authentication of the beneficiary. The Department of Food, Civil Supplies and Consumer Affair, Punjab is planning to augment their service delivery by inclusion of PoS devices in a phased manner which shall not only enhance the accuracy of the system but shall also make the systems automated, authentic, faster and transparent. Government of India (GoI) through its flagship program AADHAAR has carried out the enrolment of the residents of India with a vision to provide unique identity to every resident and during this process GoI has collected the demographic and biometric details of resident. The Aadhaar number is a 12 digit unique number for residents which could be used by Government Departments to authenticate identity of the residents. Department of Food, Civil Supplies and Consumer Affair, Punjab has prepared database of NFSA/Targeted Public Distribution System (TPDS) Beneficiaries in the State, where unique number has been given to each beneficiary family. In order to deliver the services to the citizens in a more efficient and effective manner, Department of Food, Civil Supplies and Consumer Affair, Punjab wishes to make use of its TPDS database and Aadhaar. The approximate number of Fair Price Shops in the State is and the approximate number of beneficiary families is 31 lakhs. In view of the above, Department would require PoS machines for recording the sales under Targeted Public Distribution System (TPDS) and PoS devices with application for authentication RFP for PDS Automation Page 5

6 during service delivery. It would include the charging on beneficiary at subsided rates for issuance of ration from their Jan Dhan Accounts or any other Bank A/c. It is because of this purpose, this RFP has been published to select the System Integrator (SI) to provide application based on the requirement of Department for authentication of transaction and for the purposes of generating MIS regarding FPS operations. Department is planning to get the POS deployed through banks. The Banks having presence in the Punjab with more network of branches in Rural Areas, authenticated/ authorized by NPCI for PoS transactions and willing to participate on terms and conditions of the participating agreement will be preferred on first come first serve basis subject to the approval of competent authority Objectives of the RFP The primary project objective is the implementation of TPDS through PoS device. The project objectives are as follows. 1. Timely and need based food grain allocation. 2. Prevention of diversion of essential commodities. 4. Induction of transparency and accountability in operations. 5. Reduction of stakeholder s grievances. 6. Dissemination of the information as per the public requirements. 7. Monitoring and quick decision making through MIS generated by the data of PoS device. 8. Protecting the interest and empowering the end beneficiary. 8. To improve service delivery and create transparency. 9. To weed out the fake/duplicate/wrong beneficiary. 10. To ensure Government F&CS scheme benefits are delivered only to intended beneficiaries using Aadhaar linked RuPay card issued by the Banks to beneficiaries linked to Account of the beneficiary. 11. To record real time information related to the FPS transactions and make them readily 2.2. Area of work available for future planning and analysis. FPS Automation system will be implemented group-wise in the State. Following 3 groups of districts have been created for this purpose. Bidders will need to quote separately for implementation in each of these groups subject to a maximum of 3 groups: 1. Group 1 (G1)- Division Jalandhar 2. Group 2 (G2)-Division Patiala, Roopnagar 3. Group 3 (G3)-Division Ferozepur & Faridkot RFP for PDS Automation Page 6

7 2.3. Number of Fair Price Shops under each of the Groups S.no District Total 1 Amritsar Tarn Taran Gurdaspur Pathankot Kapurthala Jalandhar Hoshiarpur SBS Nagar 257 G1 Total Patiala Sangrur Barnala Ludhiana Fatehgarh Sahib SAS Nagar Rupnagar 320 G2 Total Ferozpur Fazilka Moga Faridkot Sri Muktsar Sahib Bathinda Mansa 450 G3 Total 4096 Grand Total These are the current number of Fair Price Shops and new shops are likely to be opened in future. Some existing shops may also be closed in future. Therefore, the number of shops in a district is likely to change from its current number in the first year however subsequent change in FPS shops may also vary. RFP for PDS Automation Page 7

8 2.4. FPS Automation Process In TPDS FPS will be equipped with PoS provided by the Banks with GPRS connectivity. The food grains will be given manually at Fair Price Shop but authentication and record of transaction on server is to be done through this PoS device. Basic infrastructure proposed at FPS is PoS Device. POS will be provided by PUNGRAIN as per separate arrangements with Banks. POS will be provided with application loaded on devices for identification of beneficiary using Aadhaar and for charging the Saving Bank account of the beneficiary (Preferably Jan DhanYojna Account) for the subsidized rate of Ration Issuance of the commodities at FPS shop to the beneficiaries Online Portable mode: Beneficiary is free to get the ration from any of the Fair Price Shop within a particular local body/village. All the transactions related to the beneficiary at FPS will be fully online. No transactions can be carried out in absence of connectivity. 1. Online mode with Portability. i. PoS device gets connected with the server and registers itself on the server at beginning of session. ii. iii. iv. Beneficiary Swipes his/her Rupay Debit Card in PoS device. PoS send the transaction through servers of the bank to SI through GPRS enabled device to get authentication of beneficiary Once the beneficiary gets authenticated, Bank debits the account of the beneficiary; the remaining entitlement for the month is obtained from the application, and displayed. v. The ration is given to the beneficiary maximum upto the entitlement and a receipt of the same is generated. vi. vii. In case the beneficiary is not having sufficient balance in his account or not getting authenticated because of some reason, the ration will not be distributed. All the sales transactions are recorded with the application in real-time RFP for PDS Automation Page 8

9 2.6. Scope of System Integration This RFP is for the selection of the System Integrator (SI) for providing web based application for automation of FPS using the POS terminals. The selection of the SI shall be carried out to provide the services for FPS automation using the Point of Sale Devices (to be provided by the PUNGRAIN from tie-up with banks) with Aadhaar based authentication and providing the beneficiary data from application for distribution of ration with the help of TPDS Family ID/ Individual ID/Aadhaar number. In addition SI will also provide complete supply chain management application from the procurement/storage of foodgrains till its delivery to beneficiary. The bidder is responsible for the complete services as stated in the scope to the Department that includes development and hosting of application, maintenance etc, MIS and Analytics. The application and database related technical part of the application hosted by SI will be taken care of by the SI. The application of the PoS device will be developed & customized by the designated agency (providing the POS) and PUNGRAIN & SI jointly will verify that the integration is successful and satisfactory for this test application that will be provided by the SI. Any issues related to the integration of the two systems will be reported to the Director, Department of Food Civil Supplies and Consumer Affairs and the decision of the Director in this regard will be final. 3. Instructions to the Bidders This section specifies the procedures to be followed by bidders in the preparation and submission of their bids. Information is also provided on the submission, opening, and evaluation of bids and on the award of contract. It is important that the bidder carefully reads and examines the RFP document Availability of RFP Document The tender document is available and downloadable on the website: www. foodsuppb.nic.in 3.2. Preparation and Submission of Proposal Completeness of Bids Bidders are advised to study all instructions, forms, terms, requirements and other information in the RFP document carefully. Submission of bid shall be deemed to have been done after careful study and examination of the RFP document with full understanding of its implications. The response to this RFP should be full and complete in all respects. Failure to furnish the information required by the RFP documents or submission of a proposal not substantially responsive to the RFP documents in every respect will be at the bidder's risk and may result in rejection of its proposal. The RFP Document is not transferable to any other bidder. RFP for PDS Automation Page 9

10 Language The bid as well as all correspondence and documents relating to the bid exchanged by the bidder and the purchaser, shall be in English language only Preparation and Submission of Bid The bid in Two Part Bidding system (1 st Part Technical Bid & 2 nd Part Financial Bid is required to be submitted in the Office Room No 104 of Joint Director (FD), Department of Food, Civil Supplies & Consumer Affairs, Punjab, First Floor, Anaj Bhawan, Sector 39 C, Chandigarh. Separate envelopes should be used for Technical Bid and Price Bids and indication to that effect may please be superscribed on the envelopes. The Bidder shall submit the proposal as described below- a) Proposal that are incomplete or not in prescribed format may be rejected. b) The Technical and Financial proposal should be submitted in two separate envelopes. c) Technical Proposal signed on each page, with file name clearly mentioning: Technical Proposal for TPDS Tender.The proposal should be as per the Technical Proposal format provided in Annexure II: Technical Proposal Formats e) Financial Proposal should be submitted as per the format. f) The financial Bid should be inclusive of all related accessories, Driver Software, Operating Manuals, Warranty and other incidental charges. g) Conditional proposals shall not be accepted on any ground and shall be rejected straightway. If any clarification is required, the same should be obtained before submission of the bids Late Bids Proposal after due date and time shall not be accepted RFP Validity The RFP offer must be valid for 180 days from the due date of submission of proposal as mentioned in this RFP or the subsequent corrigendum (if any). However PUNGRAIN may extend this period, if the bidder accepts the same in writing Cost and Currency The offer must be given in Indian Rupees only. The price will remain fixed for the period of the contract and no changes for any reason what so ever will be allowed. The bidder shall bear all the costs associated with the preparation and submission of its bid, and the purchaser will in no case be responsible or liable for these costs, regardless of conduct or outcome of bidding process. RFP for PDS Automation Page 10

11 Interpretation of the clauses in the Tender Document In case of any ambiguity in the interpretation of any of the clauses in Tender Document, the PUNGRAIN S interpretation of the clauses shall be final and binding on the bidder. The decision taken by the Managing Director PUNGRAIN in the process of Tender evaluation will be full and final Amendment of Tender Document At any time prior to the deadline for submission of bids, the PUNGRAIN for any reason, whether at its own initiative or in response to a clarification requested by a prospective bidder, may modify the bid documents by amendment. Any such communication shall be posted on website and bidders are requested to visit the for corrigendum Deviations The bidder shall not be allowed to make any deviation whatsoever from the terms and condition and technical specifications specified in the RFP. All the bidders should submit No deviation form as per the format given in Annexure II Earnest Money Deposit(EMD)/ Bid Security a) EMD is to be deposited in form of Demand Draft in favour of Managing Director, Pungrain, Chandigarh b) No interest shall be payable on EMD under any circumstances. c) Unsuccessful Bidder s Bid security shall be discharged or returned within 60 (sixty) days of expiration of the period of proposal validity or after awarding tender to successful Bidder. d) In case of successful bidder, the EMD shall be discharged upon signing of agreement and submission of performance bank guarantee, as per Annexure IV. e) The EMD shall be forfeited by the PUNGRAIN, on account of one or more the following reasons- If a bidder withdraws its bid during the period of bid validity If the bidder fails to sign the agreement in accordance with terms and conditions (Only in case of a successful bidder) Fails to furnish performance bank guarantee as specified in annexure (Only in case of a successful bidder) Information given in the proposal is found inaccurate/incomplete (Only in case of a successful bidder) RFP for PDS Automation Page 11

12 Qualification Criteria and Bid Evaluation 4.1. Evaluation Methodology Tender Opening a) Bid Opening shall take in the Conference Room, First Floor, Anaj Bhawan, Sector 39-C, Chandigarh in the presence of bidders who wish to participate in tender opening on the specified date and time. b) In case EMD/ Bid Security is not received as per the timeline mentioned in Bid Data Sheet, the bid submitted would be rejected. c) A maximum of two representatives from each Participating Organization would be allowed to attend the Tender Opening. The Bidder s representatives, who may choose to attend the session, should attend the Tender opening at the Date and time mentioned in the Bid Data Sheet or as per the Date and Time revised in the subsequent communication given by the PUNGRAIN through d) During bid opening preliminary scrutiny of the bid documents will be made to determine whether they are complete, whether required bid security has been furnished and whether the bids are generally in order. Bids not conforming to such preliminary requirements will be prima facie rejected. e) To assist in the scrutiny, evaluation and comparison of offers, the MD PUNGRAIN may, at its discretion, ask some or all the Bidders for clarification of their offers on any of the points mentioned therein and the same may be sent through , facsimile. No change in the prices or substance of the bid shall be sought, offered, or permitted, except to confirm the correction of arithmetic errors discovered by the PUNGRAIN in the evaluation of the bids Tender Evaluation To evaluate the Tender, Managing Director, PUNGRAIN shall formulate a Tender Evaluation Committee (TEC) (also referred to as Evaluation Committee ). The Evaluation Committee shall evaluate the Technical and Financial bids as per the following process: a) Managing Director, PUNGRAIN will evaluate and compare the bids that have been determined to be substantially responsive. b) Tender Evaluation Committee shall review the Technical Proposal along with Eligibility Criteria. To assist in the examination, evaluation, and comparison of the bids, and qualification of the Bidders, Evaluation Committee may, at its RFP for PDS Automation Page 12

13 discretion, ask any Bidder for a clarification of its bid.. c) Eligible bidders scoring 60% or more in the Technical evaluation shall be considered for financial evaluation. d) The Financial Proposals of only those Bidders who have been qualified in the Technical Proposal will be opened in the presence of their representatives, who may choose to attend the session on the specified date, time and address mentioned in the Bid Data Sheet Failure to Agree with the Terms and Conditions of the RFP Failure of the successful bidder to agree with the Terms & Conditions of the RFP / Contract shall constitute sufficient grounds for the annulment of the proposal or the award, in such event the PUNGRAIN would reject the proposal and forfeit the EMD as specified in the document. 4.2 Eligibility Criteria Documents required 1 The Bidder must be a company incorporated in India Registered under the Company's Act 1956 /proprietorship firm/ partnership firm. 2 The Bidder should be in the business of providing web based solution in India for last three years as on date of submission of bid. 3 The bidder should have an annual average turnover of Rs. 5 crores in last 3 financial years (FY , , ) 4 The Bidder should have at least 1 work order for providing web based solution to any Central/State Government entity. Certificate of Incorporation along with MOA and AOA. Order copy / installation /client certificate. Financial Statements (Balance Sheets Audited by a Certified Chartered Accountant) Work order copy/ installation /client certificate 5 The bidder should have a valid ISO 9001:2008 or better Copy of the valid certificate 6 The bidder should be registered for Sales Tax / VAT and Copy of Sales Tax & VAT shall have valid PAN number if any. registration Copy of PAN documents if any 7 The firm should not have been blacklisted by Central Government or any State Government Organization / Department PSU in India at the time of submission of the Bid Self declaration letter from bidder RFP for PDS Automation Page 13

14 4.3. Technical Qualification Criteria a) Technical Proposal for only those Bidders who have been found to be in compliance with the Eligibility Criteria mentioned above would be considered by the PUNGRAIN for further evaluation. b) Technical proposals of bidders shall be compared within respective product category and ranking of technical score would be carried out within the same category. c) Only those Technical Bids, whose proposed Solution comply with the technical specification given on Annexure-I shall be considered for further evaluation. In this regard the Bidder should provide a compliance statement to the technical specifications in the form of Complied or Not Complied should be enclosed in the technical bid. The compliance statement should contain the signature of the authorized person and the seal of the company. d) The Technical Evaluation Committee based on technical evaluation framework mentioned shall evaluate each proposal and allot technical score as per the Technical criteria mentioned below. The following sections explain how the Bidders will be evaluated on each of the above evaluation criteria S. No. Evaluation Criteria Scores 1. Company Profile and Experience The Company/Agency should be operating in the field of Design, Development & Implementation of Web/ Mobile Apps at least for the last three Financial Years ( ; and ) with an average annual turnover as under: (Turnover upto 5 Crores Points: 05, >5 &upto 10 Crores -Points:7, >10 Crores Points: 10) A Copy of Balance Sheet/ an authentic audited document clearly specifying IT services of the Company/Agency is required Experience in Design, Development & Implementation of 25 Websites/Portals & Web Applications development in Govt Sector The firm should provide for three citations (in various price bands) of Design, Development & Implementation of Websites/Portals & Web/ Mobile Applications assignments completed by Company/Agency during the last three years of the value as under: [(Project value > 10 lacs) 3 to 5 projects Points: 10, 6 to 10 projects Points: 20, > 10 projects Points: 25)] Proof of successful completion of engagements (Completion Certificate/Client Certificate) are required 3. Bidder s Experience in Punjab/Haryana/Chandigarh Government: Government Related Project Experience: How well the vendor is located in the State of Punjab/Haryana/Chandigarh and does the bidder have any experience of providing Web based Application Services and Maintenance 20 RFP for PDS Automation Page 14

15 for any Govt. Deptt/ Board/ Corporation in the State of Haryana/Punjab/Chandigarh. (For 1-Projects - Points: 5, 2 to 5 projects - Points:15, 5 projects and more - Points: 20) Proof of successful completion of engagements (Completion Certificate/client certificate) are required 4. Bidder s Experience in Food Grain Sector: Food Grain Related Project Experience: How well the vendor is having experience of developing & implementing similar projects in the Food Grain Sector. For (Project value > 10 lacs) 1 project Points: 5, 2 to 5 projects Points :15, 5 projects & more - Points: 25) Proof of successful completion of engagements (Completion Certificate/client certificate ) are required 5. Presentation: The bidder company/agency will make a presentation of their understanding about the project and highlighting the methodology & proposed value additions etc. of this project. Marks will be Awarded on Details of Solution Design Project Execution & Deployment Plan Demo of Similar Solutions with Reporting & Dashboards Training & Implementation Plan The Bidder will be awarded 5 Marks for Each Point Please Note: PUNGRAIN reserves right to visit (or conduct Telephonic verification) bidder s customers where such a similar project execution has taken place. Bidders who score overall 60 marks or higher in the technical evaluation, as per the criteria mentioned above, shall be considered for financial evaluation Financial Bid Evaluation The financial bids for technical qualified bidders will be opened. Financial bids, not substantially responsive or incomplete in any manner, are liable to be disqualified. The bidder with lowest bid will be declared as Lowest Bidder (L1) Selection of the Bidder a) The technically qualified bidder with L1 rate shall be the successful bidder. b) In an event wherein two or more Bidders have Bid at the same price, then the bidder with the highest technical score will be given preference for engagement. c) In the event that any successful bidder (L1) withdraws or is not ready for engagement for any reason, PUNGRAIN may invite the vendor with next lowest rate (L2) for engagement provided L2 bidder is ready to accept the rate quoted by L1 bidder. RFP for PDS Automation Page 15

16 4.6. Confidentiality a) Any attempt by a Bidder to influence PUNGRAIN in the evaluation of the bids or Contract award decisions may result in the rejection of its bid. b) If any Bidder wishes to contact the PUNGRAIN during/after opening of the Bid to award of contract. He may do so in writing. 5 Scope of Work 5.1. Application (Build-Own-Operate Model) The Scope of work for successful vendor is to provide the web based solution as below: a) Allocation data For initialization of allotment data before the start of distribution period. The data would be provided by PUNGRAIN in agreed format module would be provided to input the data through manual or/and electronic mode in the application. Module be provided for the verification of data at district level. Once verified at district and head office it cannot be changed during the distribution period. c) Transaction authorization Transaction will be initiated through the POS terminal to be provided by the banks and would be sent to the application as per mode and format provided by the SI (the mode and format for data transfer should be acceptable by banking industry). Based on data submitted, SI would verify the data and sent the communication back to the server switch/server of the acquirer bank for further processing. d) Recording of Successful transaction After debit of beneficiary account, information about the success/failure of the entry would be sent to SI for recording the delivery of foodgrains. e) Supply Chain Management i. Receipt at Storage Godowns ii. Issuance from Storage Godowns to FPS iii. Receipt at FPS iv. Issuance from FPS to Beneficiary v. Return from FPS to Storage Godown f) MIS at Various levels 1. Generation of MIS for allocation and delivery at various levels:- - HO State level - BO District level - Block level - Village/town level - FPS level 2. Generation of MIS for collection at various levels:- RFP for PDS Automation Page 16

17 - HO level - District level - Inspector level - FPS level - Village / Town level 3. Generation of MIS for Inventory of various items at various levels:- - HO level - District level - FPS level - Storage Points level 4. MIS of amount collection and its allocation to various service provider/ system integrator at various levels 5. Any other report as required by Department of Food Civil Supplies and Consumer Affair/ PUNGRAIN 5.2. Implementation Schedule Following are the timelines for the completion of various phases (for each Group as specified inspection 2.2): APPLICATION DESIGN, DEVELOPMENT&IMPLEMENTATION S NO. Milestones Time of Completion 1. Signing of Agreement, Project Initiation, T+1 month System Study, Preparation of Project Document/Sign Off 2. Design and Development of Software Modules T+2 months 3. Testing, Modification &User Acceptance T+3 months 4. Data Migration, Implementation, Go Live and Training T+4 months The go-live for the start of 5 years of engagement will be at the group level. The go-live definition for a group will be: Commencement of the transactions on 95% of the PoS devices in each and every district within that group. The definition of a completed transaction will be completed with communication to the central server for that transaction. Further, the go-live for every group will be 1 st of every month irrespective of the completion date of installation of PoS devices. Similarly, shifting from one mode to another will also be considered to be started from 1 st of every month irrespective of the completion date for all the technical requirements required to shift from one mode to another. Please note: a) SI will need to strictly adhere to the implementation schedule and obtain final acceptance for the first distribution cycle. In case there is delay from bidder in obtaining the final acceptance RFP for PDS Automation Page 17

18 as per the implementation schedule, 1% of the total fee payable for the first distribution cycle for the particular group will be levied as penalty (for every week of delay) on the SI. In case of a continuous delay of 12 weeks, the agreement is liable to be terminated at the discretion of the Managing Director, PUNGRAIN b) In case of early delivery denoted by the receipt of final acceptance by the SI, the SI will be 5.3. Support eligible for 1% of total fee payable for first distribution cycle for that group (for every week of early delivery) as incentive not exceeding 4 weeks. For example, if the delivery is completed within 8 weeks, 4% of total monthly fee for that group will be paid to the SI as maximum incentive. a) The SI shall provide support as per the service level agreements mentioned in the Section 6.3. b) The SI shall cooperate with the third-party external auditors for conducting certifications and audits and shall also assist in strengthening of processes by attending to audit points. PUNGRAIN will appoint the third party auditor and will bear the cost for the same. c) PUNGRAIN will operate a centralized helpdesk (Tier 1) with a telephone number for technical/ operational support. Please note that a single number will be functional in the State. The centralized helpdesk will forward the calls to the helpline provided by the System Integrator responsible for the project. The helpline provider appointed by SI will register the complaints about application issues and will also maintain a log of issues, time and date of receipt of call, cause / nature of problem (network, hardware etc.), date & time of resolution provided etc. The working hours for the district level nodal officers should be from 9:00am to 5:00 pm on all days except Sundays & Govt. Holidays. System Integrator will need to bear all expenses of the helpline provided by the SI and he will not be held responsible for any fault and expenses of helpline to be provided by the Department (tier 1). d) SI is free to set up call centre anywhere in India beyond the scope of work to provide remote/ telephonic support. 6. Service Level Agreements and Payment Schedules 6.1. Payment Schedules On signing of the contract as Build-Own-Operate model, the System Integrator, within the time defined in the Service Level agreement, shall deliver the APPLICATION. The System Integrator shall be responsible for obtaining all the clearances/licences to ensure delivery of the APPLICATION. RFP for PDS Automation Page 18

19 PUNGRAINshall review the service levels adherence by the System Integrator before making the payment Payments The system integrator would be paid per transaction fee on the basis of actual use of solution for delivery of items to be eligible beneficiary. Transaction fee will be deducted by the acquiring banks from amount collected from beneficiary and would be transferred to the account of the system integrator. Deductions if any due to SLAs deviations shall be determined and recovered from the service provider by inviting Bank Guarantee or by raising Demand on the SI as defined in SLA. SLA adherence reports have to be generated by the concerned System Integrator and the same shall be submitted to the PUNGRAIN. This would be used for monitoring of SLA and calculation of penalties (if any), client at its own discretion may verify the SLA performance reports and penalties Service Level Agreement Service Level Agreement (SLA) will form part of the contract between PUNGRAIN and the System Integrator. SLA defines the terms of the responsibility in ensuring the timely delivery and the compliance to the Performance Indicators as detailed in this document. The system Integrator has to comply with Service Levels requirements to ensure adherence to timelines, quality and availability of services. SLA Requirements Service Level Agreement (SLA) is the contract between PUNGRAIN and the System Integrator. SLA defines the terms of the System Integrator s (SI) responsibility in ensuring the performance of the Project based on the agreed Performance Indicators as detailed in the Agreement. This section defines various Service Level Indicators for Project, which can be considered by the PUNGRAIN in the Service Level Agreement with operator. The detailed description of the performance indicators, SLA Terms and their definitions are discussed in the following sections. RFP for PDS Automation Page 19

20 SLA Parameters Project SLA terms and definition Table SLA Terms and definition S.N. SLA Term Description 1. Availability Availability refers to remain connected to the central server and communicate. 2. Percentage of ration card Percentage of the total number of cards within that holders. FPS. SLA Reporting The reports, other than initially discussed and agreed, required by the Department have to be submitted by the selected bidder as mutually agreed by both the parties. 6.4 Penalties Table: Penalties Following decision tree will be in force to check if there are penalties to be levied on the vendor for a given month: 1. Is the web application is not available for more than 5 days. 2. If YES to 1, then penality will be charged from the vendor as per SLA. 3. If NO to 1, then it will be checked whether the number of unique transactions (transaction conducted using a single ration card will be termed as a single unique transaction no matter how many times the ration card is used in the month) crossed 80% of the ration cards associated with that Fair Price Shop in the month? 4. If YES to 3, then payment will be made to the vendor 5. If NO to 3, then it will be checked whether the FPS shopkeeper lodged a complaint with the Helpdesk regarding malfunctioning of the web application? 6. If NO to 5, then payment will be made to the vendor 7. If YES to 5, then apart from not getting payments for that month for that shop penalty will be levied on the vendor for that month as described in the following table S.no Description Service Level Penality Monthly online Minimum 20 days in a month No penality availability RFP for PDS Automation Page 20

21 Please Note: of the web application as per the report generated from the central server. Less than20 days but eighty percent to more unique transactions Less than20 days and less than eighty percent unique transactions but no complaint lodged by FPS dealer. Less than 20 days and less than eighty percent of unique transactions and complaint lodged by FPS dealer and not redressed within 48 hours. No penalty No Penalty SI will NOT be paid MGR for that month. a) The penalty amount shall be recovered as per the terms and conditions of SLA Agreement. b) An investigation will be conducted by the Pungrain into the reason as to why the application was not available for at least 20 days in that month. c) It will be investigated whether that application was non-functional due to mishandling/internet Connectivity problems/mismanagement or due to any other reason. The investigation will be completed within 7 working days of filing of complaint and based upon the results of the investigation further action will be initiated by the PUNGRAIN. d) The vendor timeline of 48 hours will start after the complaint is forwarded to nodal officer of bidder from the PUNGRAIN central helpdesk via 7. Signing of Contract a) The successful Bidder shall execute an agreement within 15 days from award of contract from PUNGRAIN. In exceptional circumstances, on request of the successful bidder in writing for extension, PUNGRAIN reserves the right to grant an extension for appropriate period after getting satisfied with the reasons given. b) In addition to terms and conditions being mentioned hereunder, all terms and conditions of the RFP and corrigenda issued will also be applicable for the contract. c) There shall be agreement between PUNGRAIN and Successful bidder. On failure of execution of the agreement by the successful bidder, the EMD furnished will be forfeited Performance Bank Guarantee (PBG)/ Security Deposit The System Integrator shall be required to submit PBG as per the following formula: Ten percent of (fee of quoted transaction fee for distributed period in first financial year. The System Integrator shall have to submit the PBG as per the format given on Annexure IV. RFP for PDS Automation Page 21

22 The PBG shall be denominated in the currency of the contract and will be for an amount as mentioned above. All charges with respect to the PBG shall be borne by the bidder. The PBG shall be remaining valid six months beyond the life of the contract. The PBG will be discharged / returned by PUNGRAIN upon being satisfied that there has been due performance of the obligations of the bidder under the contract. However, no interest shall be payable on the performance bank guarantee In the event of the bidder being unable to service the contract for whatever reason, PUNGRAIN would invoke the PBG. PUNGRAIN shall notify the bidder in writing of the exercise of its right to receive such compensation within 14 days, indicating the contractual obligation(s) for which the bidder is in default Validity period/duration of the engagement The engagement shall remain in force for 5 years (Five years) from T+16 date as per the implementation schedule table section Taxes and Duties Rates should be exclusive of all Taxes and inclusive of all other items Transfer / Sub-Contracting The bidder has no right to give, bargain, sell, assign or sublet or otherwise dispose of the Contract or any part thereof, as well as to give or to let a third party take benefit or advantage of the present Contract or any part thereof. However, in case of circumstances beyond the control of bidder, transfer/ sub-contracting may be permissible with the written concurrence of Managing Director, PUNGRAIN Completeness of Contract The contract will be deemed as incomplete if any component of the software, handholding, Training, or any documentation relating thereto is not delivered, or is delivered but not installed and /or not operational or not acceptable to the indenter/buyer after acceptance testing /examination. In such an event, application software, and other software will be termed as incomplete. The application software will be accepted by concerned officer of the department after successful commissioning and satisfactory functioning of application Suspension & Termination of System Integrator a) Subject to the provisions mentioned here under this Agreement shall terminate at the expiry of the agreement term. RFP for PDS Automation Page 22

23 b) Either party may terminate this Agreement if the other party breaches the terms of this Agreement and fails to rectify it within 30 days of receiving notice of breach. c) Either party with the consent of the other party can terminate this Agreement by giving 30 days written notice. d) PUNGRAIN reserves the right to terminate the contract in case System Integrator gets blacklisted by the any State Government or any Ministry of Government of India during the course of Project or if SI is convicted in a legal/tax evasion case or on account of any other legal misconduct of the SI. e) The PUNGRAIN may serve written notice on SI at any time to terminate this Agreement with immediate effect in the event of a reasonable apprehension of bankruptcy of the SI. f) In the event that the PUNGRAIN terminates this Agreement due to the breach of the SI as per the conditions of this agreement, the PUNGRAIN shall be entitled to invoke the Project Performance Guarantee. g) Upon expiry, this Agreement may be extended and/or renewed by PUNGRAIN on behalf of Government of Punjab subject to the terms of this Agreement. h) PUNGRAIN may, at any time, terminate the engagement by giving 30 days written notice to the System Integrator without any compensation(if the System Integrator becomes bankrupt or otherwise insolvent, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to PUNGRAIN i) The engagement of the bidder shall be suspended and the bidder may be blacklisted forthwith by the PUNGRAIN under following circumstances/reasons: Violation of any condition of the tender/ contract or part of any condition of the tender contract of engagement, or Deviation found in quality and quantity of the product supplied, or On finding software supplied as pirated, or If it is found that during the process of award of contract, fraudulence was made by the bidder or the vendor if found to resort to the fraudulent practice in getting supply order like offering incentive in terms of free product or money. j) As stopping the supply of faulty/substandard product/application and taking appropriate action in this regard is of an urgent and emergent nature required to protect the interest of the PUNGRAIN/Government, the engagement of the concerned will be suspended. However, before taking the final decision on the matter, all concerned will be given reasonable opportunities to explain their stand. After enquiry, if the bidder is found guilty, the engagement of the concerned bidder for the product in question will be cancelled and other appropriate legal action shall also be initiated against all concerned. In case of any dispute, the decision of the RFP for PDS Automation Page 23

24 PUNGRAIN shall be final and binding Amendment No provision of Contract shall be changed or modified in any way (including this provision) either in whole or in part except by an instrument in writing made after the date of this Contract and signed on behalf of all the parties and which expressly states to amend the present Contract Corrupt / Fraudulent Practices The Purchaser requires that the Bidders under this tender should observe the highest standards of ethics during the procurement and execution of such contracts. In pursuance of this policy, the Purchaser defines the terms set forth as follows: a) Corrupt Practice means the offering, giving, receiving or soliciting of anything of value to influence the action of the public official in the award of the RC, procurement process or in contract execution; b) In the event of corrupt practice and fraudulence in addition to penal action as per the terms and conditions of the contract, legal action shall also be initiated against the concerned. c) Fraudulent practice means a misrepresentation of facts in order to influence award of contract or a procurement process or a execution of a contract to the detriment of the Purchaser, and includes collusive practice among Bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels and to deprive the Purchaser of the benefits of the free and open competition; d) The Purchaser will suspend the award of contract if prima-facie it is established that the vendor had engaged in corrupt or fraudulent practices in competing for the contract in question. e) The Purchaser will declare a Bidder ineligible after giving opportunity of being heard, either indefinitely or for a stated period of time, to be awarded a contract if at any time it is found that the Bidder has engaged in corrupt and fraudulent practices in competing for, or in executing, this contract Resolution of Disputes That the performance of the contract shall be governed by the terms and conditions as contained therein. In case of dispute between the parties regarding any matter there-under, either party may send a written Notice of Dispute to the other party. The party receiving the Notice of Dispute shall consider the notice and respond to it in writing within 30 days after receipt of the same. If that party fails to respond within 30 days or the dispute cannot be amicably settled within 30 days following the response of that party, the parties shall go for arbitration. RFP for PDS Automation Page 24

25 The arbitration proceedings shall be governed by the Arbitraiton and Conciliation Act, 1996 and any statutory amendments, modifications thereof, for the time being in force. The arbitration proceedings shall be held at Chandigarh by such arbitrator who shall be appointed by the Director, Food, Civil Supplies & Consumer Affairs, Punjab or any person nominated by him. The nominee, if any, shall be an impartial person who shall have no interest in either of the parties and may be a retired Senior Judicial Officer or a person of imminence. The award of such arbitration shall be final and binding on the parties. The cost of arbitration, as determined by the arbitrator as per the provisions of the Arbitration and Conciliation Act, 1996, shall be shared equally by both the parties. However, the expenses incurred by each party in connection with the preparation, presentation, shall be borne by the party itself. The arbitration award shall be in writing and shall stayed the reasons for the award Legal Jurisdiction All legal disputes are subject to the jurisdiction of Courts at Chandigarh only Indemnity The successful bidders/system Integrator shall indemnify, protect and save PUNGRAIN against all claims, losses, costs, damages, expenses, action suits and other proceeding, resulting from infringement of any patent, trademarks, copyrights etc. or such other statutory infringements in respect of all components (like system software, software tools etc.) and the services rendered under this tender Publicity Any publicity by the bidder in which the name of the Indenter/buyer is to be used should be done only with the explicit written permission of the Indenter/buyer Performance Obligations While providing services as per Scope of Work, the successful bidder shall ensure that there is no infringement of any patent or design rights or violate any intellectual property or other right of any person or entity and shall comply with all applicable Laws, Statute, regulations and Governmental requirements and he/she shall be solely and fully responsible for consequence / any actions due to any such infringement Force Majeure Force Majeure is an event or circumstance which is beyond the control and without the fault or negligence of the party affected and which by the exercise of reasonable diligence, the party affected was unable to prevent that event or circumstance. Neither party shall be responsible for any failure to perform its obligations under this contract, if it is prevented or delayed in performing those obligations by an event of Force Majeure as defined above. Where there is an event of Force Majeure, the party prevented from or delayed in performing its obligations under the contract must immediately notify the other party giving full RFP for PDS Automation Page 25