TENDER NO. PC /004/ FOR PROVISION OF 1. STAFF MEDICAL INSURANCE POLICY 2. GROUP PERSONAL ACCIDENT (GPA) INSURANCE POLICY

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1 ISO 9001:2008 Certified Extelcoms House,11th Floor Haile Selassie Avenue Nairobi, Kenya P.O. Box Tel : /7/8 Fax : info@pc.go.ke: Website: TENDER NO. PC /004/ FOR PROVISION OF 1. STAFF MEDICAL INSURANCE POLICY 2. GROUP PERSONAL ACCIDENT (GPA) INSURANCE POLICY LAUNCH DATE: 22 nd September 2016 CLOSING DATE: 6 th October 2016 AT 12.00P.M.

2 Page of 45 TABLE OF CONTENTS Page SECTION I INVITATION TO TENDER 3 SECTION II INSTRUCTIONS TO TENDERERS 4 APPENDIX TO INSTITUTIONS TO TENDER 18 SECTION III GENERAL CONDITIONS OF CONTRACT 20 SECTION IV SPECIAL COND1TIONS OF CONTRACT 26 QUALIFICATION REQUIREMENTS 26 EVALUATION CRITERIA 28 SECTION V SCHEDULE OF REQUIREMENTS 29 SECTION VI DESCRIPTION OF SERVICES 30 SECTION VII STANDARD FORMS. 32 Page of 45

3 SECTION I - INVITATION TO TENDER Page of 45 Date: 22 nd September 2016 TENDER NO. PC/004/ : PROVISION OF STAFF MEDICAL INSURANCE POLICY AND GROUP PERSONAL ACCIDENT (GPA) INSURANCE POLICY The Privatization Commission (PC) invites sealed tenders from eligible Insurance Companies and Medical Providers for the provision of Staff Medical Insurance and Group Personal Accident (GPA) Insurance Policy for the period starting 1 st November A complete set of tender documents may be obtained by interested candidates from the Privatization Commission offices, 11th floor, Extelcoms House, Haile Selassie Avenue, Nairobi during normal working hours upon payment of a non - refundable fee of Kshs. 1, to the Accounts office on the same floor either in cash or Bankers Cheque payable to the Privatization Commission or downloaded free of charge from the Commission website or Those who download the document should inform the Commission immediately via . Prices quoted should be net inclusive of all taxes, must be in Kenya Shillings and should remain valid for 90 days after date of tender opening. Tenders must be accompanied by a tender Security of Kshs. 80, from a reputable Bank and should be valid for a period of 120 days from the date of tender closing. Tenders must be serialized pursuant to Section 74(1)(i) of the Public Procurement and Asset Disposal Act Completed tender documents are to be enclosed in plain sealed envelopes, marked with the tender number and name and be deposited in the tender box provided at the Privatization Commission s Offices, 11th floor, Extelcoms House, Haile Selassie Avenue, Nairobi or be addressed to: The Executive Director/CEO Privatization Commission, P. O. Box NAIROBI so as to be received on or before P.M. on 6 th October Tenders will be opened immediately thereafter in the presence of the tenderers or their representatives who choose to attend the opening at the Main Board Room, 11th floor, Extelcoms House, Haile Selassie Avenue, Nairobi. SOLOMON KITUNGU EXECUTIVE DIRECTOR/CEO Page of 45

4 Page of 45 SECTION II INSTRUCTIONS TO TENDERERS TABLE OF CONTENTS. Page 2.1 Eligible Tenderers Cost of tendering Contents of tender documents Clarification of Tender documents Amendment of tender documents Language of tenders Documents comprising the tender Form of tender Tender prices Tender currencies Tenderers eligibility and qualifications Tender security Validity of tenders Format and signing of tenders Sealing and marking of tenders Deadline for submission of tenders Modification and withdrawal of tenders Opening of tenders Clarification of tenders Preliminary Examination and Responsiveness Conversion to other currencies Evaluation and comparison of tenders Contacting the Privatization Commission Award of Contract Notification of award Signing of Contract Performance security Corrupt or fraudulent practices. 16 Page of 45

5 SECTION II - INSTRUCTIONS TO TENDERERS 2.1 Eligible Tenderers This invitation for Tenders is open to all eligible insurance companies and Medical providers as described in the Appendix to Instructions to Tenderers. Successful tenderers shall provide the service for an initial twelve (12) months period, with an option of renewal for a further one year from the date of commencement (hereinafter referred to as the terms) specified in the tender documents subject to satisfactory performance The Privatization Commission Employees, Committee Members, Board Members and their relatives (spouse and children) are not eligible to participate in the tender Tenderers shall provide the qualification information statement that the bidder (including all members of a joint venture and sub Tenderers) is not associated, or have been associated in the past, directly or indirectly, with a firm or any of its affiliates which have been engaged by the Privatization Commission to provide consulting services for the design, specifications, and other documents to be used for the procurement of the services under this Invitation for tenders Tenderers involved in corrupt or fraudulent practices or debarred from participating in public procurement shall not be eligible Cost of Tendering The Tenderer shall bear all costs associated with the preparation and submission of its tender, and the Privatization Commission, will in no case be responsible or liable for those costs, regardless of the conduct or outcome of tendering process A non-refundable fee of Kshs. 1, is to be charged for the tender document. 2.3 Contents of Tender Document The Tender documents comprise the documents listed below and addenda issued in accordance with these instructions to tenders. (i) (ii) (iii) Instructions to Tenders General Conditions of Contract Special Conditions of Contract

6 (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) Schedule of Requirements Details of Insurance Cover Form of Tender Price Schedules Contract Form Confidential Business Questionnaire Form Tender Security Form Performance Security Form Sample letter of notification of award 2.4 Clarification of Tender Documents A Candidate making inquiries of the tender documents may notify the Privatization Commission by post, fax or by at the Commission s address indicated in the invitation for tenders. The Privatization Commission will respond in writing to any request for clarification of the tender documents, which it receives not later than seven (7) days prior to the deadline for the submission of the tenders, prescribed by the Privatization Commission. Written copies of the Procuring entities response (including an explanation of the query but without identifying the source of inquiry) will be sent to all candidates who have received the tender documents The Privatization Commission shall reply to any clarifications sought by the tenderers within 3 days of receiving the request to enable the tenderer to make timely submission of its tender. 2.5 Amendments of Tender Documents At any time prior to the deadline for submission of tenders, the Privatization Commission, for any reason, whether at its own initiative or in response to a clarification requested by a prospective tenderer, may modify the tender documents by issuing an addendum All prospective tenderers who have obtained the tender documents will be notified of the amendment by post, fax or and such amendment will be addendum In order to allow prospective tenderers reasonable time, in which to take the amendment into account in preparing their tenders, the Privatization Commission at its discretion, may extend the deadline for the submission of tenders. Page 6 of 45

7 2.6 Language of Tenders The Tender prepared by the tenderer, as well as all correspondence and documents relating to the tender exchanged by the tenderer and the Privatization Commission, shall be written in English Language. Any printed literature furnished by the tenderer may be written in another language provided they are accompanied by accurate English translation of the relevant passages in which case, for purposes of interpretation of the tender, the English translation shall govern. 2.7 Documents Comprising the Tender The Tender prepared by the tenderer shall comprise the following components: (a) (b) (c) A Tender Form and a Price Schedule completed in accordance with paragraph 2.8, 2.9 and 2.10 below. Documentary evidence that the tenderer is eligible to tender and is qualified to perform the contract if its tender is accepted; Tender security in the prescribed form. 2.8 Form of Tender The tenderer shall complete the Tender Form and the Price Schedule furnished in the tender documents, indicating the services to be provided in the Appendix I and II Tender Prices The tenderer shall indicate on the form of tender and the appropriate Price Schedule the unit and total tender price of the services it proposes to provide under the contract Prices indicated on the Price Schedule shall be the cost of the services quoted including all customs duties and VAT and other taxes payable Prices quoted by the tenderer shall remain fixed during the Terms of the contract unless otherwise agreed by the parties. A tender submitted with an adjustable price quotation will be treated as non-responsive and will be rejected pursuant to paragraph Tender Currencies Prices shall be quoted in Kenya Shillings Page 7 of 45

8 2.11 Tenderers Eligibility and Qualifications Pursuant to paragraph 2.1 the tenderer shall furnish, as part of its tender, documents establishing the tenderer s eligibility to tender and its qualifications to perform the contract if its tender is accepted The documentary evidence of the tenderer s qualifications to perform the contract if its tender is accepted shall establish to the Privatization Commission s satisfaction that the tenderer has the financial and technical capability necessary to perform the contract Tender Security The tenderer shall furnish, as part of its tender, a tender security for the amount and form specified in the Appendix to Instructions to Tenderers The tender security shall not exceed 2 per cent of the tender price (please refer to the appendix of instructions to tenderers for more information) The tender security is required to protect the Privatization Commission against the risk of Tenderer s conduct which would warrant the security s forfeiture, pursuant to paragraph The tender security shall be denominated in Kenya shillings or in another freely convertible currency, and shall be in the form: (a) (b) (c) Cash A bank guarantee Letter of credit Any tender not secured in accordance with paragraph and shall be rejected by the Privatization Commission as non-responsive, pursuant to paragraph Unsuccessful Tenderer s tender security will be discharged or returned as promptly as possible as but not later than thirty (30) days after the expiration of the period of tender validity The successful Tenderer s tender security will be discharged upon the tenderer signing the contract, and furnishing the performance security. Page 8 of 45

9 The tender security may be forfeited: (a) (b) (c) If a tenderer withdraws its tender during the period of tender validity. In the case of a successful tenderer, if the tenderer fails (i) to sign the contract in accordance with paragraph 2.29 or (ii) to furnish performance security in accordance with paragraph If the tenderer rejects correction of an arithmetic error in the tender Validity of Tenders Tenders shall remain valid for 120 days from the date of tender opening pursuant to paragraph A tender valid for a shorter period shall be rejected by the Privatization Commission as non-responsive In exceptional circumstances, the Privatization Commission may solicit the Tenderer s consent to an extension of the period of validity. The request and the responses thereto shall be made in writing. The tender security provided under paragraph 2.12 shall also be suitably extended. A tenderer granting the request will not be required nor permitted to modify its tender Format and Signing of Tenders The original Technical and Financial Proposal shall be prepared in indelible ink. It shall contain no interlineations or overwriting, except as necessary to correct errors made by the firm itself. Any such corrections must be initialed by the persons or person authorized to sign the proposals For each proposal, the bidders shall prepare the original copy of the document as specified. Each Technical Proposal and Financial Proposal shall be marked ORIGINAL TECHNICAL BID or ORIGINAL FINANCIAL BID as appropriate The original Technical Bids shall be placed in a sealed envelope clearly marked TECHNICAL BID. Similarly the original of the Financial Proposal shall be placed in a sealed envelope clearly marked FINANCIAL BID and warning: DO NOT OPEN WITH THE TECHNICAL BIDS. Both envelopes shall be placed in an outer sealed envelope marked BIDS FOR Page 9 of 45

10 PROVISION OF STAFF MEDICAL AND GROUP PERSONAL ACCIDENT (GPA) INSURANCE POLICIES This outer envelope shall bear the submission address and other information indicated in the Appendix A and be clearly marked, DO NOT OPEN, EXCEPT IN PRESENCE OF THE OPENING COMMITTEE Sealing and Marking of Tenders The tenderer shall seal the original and the copy of the tender in separate envelopes, duly marking the envelopes as ORIGINAL TENDER and COPY OF TENDER. The envelopes shall then be sealed in an outer envelope The inner and outer envelope shall: (a) be addressed to the Privatization Commission at the address given in the Invitation to Tender. (b) bear tender number and name in the invitation to tender and the words, DO NOT OPEN BEFORE the date and time of closing indicated in the Appendix of Instructions To Tenderers The outer envelopes shall also indicate the name and address of the tenderer to enable the tender to be returned unopened in case it is declared late If the outer envelope is not sealed and marked as required in , Privatization Commission will assume no responsibility for the tender s misplacement or premature opening Deadline for Submission of Tenders Tenders must be received by the Privatization Commission at the address specified not later than the day, date and time of closing indicated in the Appendix of Instructions to Tenderers The Privatization Commission may, at its discretion, extend this deadline for the submission of tenders by amending the tender documents in accordance with paragraph in which case all rights and obligations of the Privatization Commission and candidates previously subject to the deadline will thereafter be subject to the deadline as extended Bulky tenders which will not fit in the tender box shall be received by the Privatization Commission as provided for in the Instruction to tenderers. Page 10 of 45

11 2.17 Modification and Withdrawal of Tenders The tenderer may modify or withdraw its tender after the tender s submission provided that written notice of the modification, including submission or withdrawal of the tenders, is received by the Privatization Commission prior to the deadline prescribed for submission of tenders The tenderer s modification or withdrawal notice shall be prepared, sealed, marked and dispatched in accordance with the provision of paragraph 2.15 (sealing and Marking of Tenders). The withdrawal notice may be sent by post, fax or but followed by a signed confirmation copy postmarked not later than the deadline for submission of tenders No tender may be modified after the deadline for submission of tenders No tender may be withdrawn in the interval between the deadline for submission of tenders and the expiration of the period of tender validity. Withdrawal of a tender during this interval may result in the Tenderer s forfeiture of its tender security Opening of Tenders The Privatization Commission will open all tenders in the presence of tenderers or their representatives who choose to attend, on and in the location specified in the invitation for tenders. The tenderers representatives who are present shall sign a register evidencing their attendance The tenderers names, tender modifications or withdrawals, tender prices, discounts and the presence or absence of requisite tender security and such other details as the Privatization Commission, at its discretion, may consider appropriate, will be announced at the opening The Privatization Commission will prepare minutes of the tender opening, which will be available to tenderers on request Clarification of Tenders To assist in the examination, evaluation and comparison of tenders, the Privatization Commission may, at its discretion, ask the tenderer for a clarification of its tender. The request Page 11 of 45

12 for clarification and the response shall be in writing, and no change in the prices or substance of the tender shall be sought, offered, or permitted Any effort by the tenderer to influence the Privatization Commission in its tender evaluation, tender comparison or contract award decisions may result in the rejection of the tenderers tender Preliminary Examination and Responsiveness The Privatization Commission will examine the tenders to determine whether they are complete, whether any computational errors have been made, whether required sureties have been furnished, whether the documents have been properly signed, and whether the tenders are generally in order Arithmetical errors will be rectified on the following basis. If there is a discrepancy between the unit price and the total price that is obtained by multiplying the unit price and quantity, the unit price shall prevail, and the total price shall be corrected. If the candidate does not accept the correction of the errors, its tender will be rejected, and its tender security forfeited. If there is a discrepancy between words and figures, the amount in words will prevail The Privatization Commission may waive any minor nonconformity or irregularity in a tender which does not constitute a material deviation provided such waiver does not prejudice or affect the relative ranking of any tender Prior to the detailed evaluation, the Privatization Commission will determine the substantial responsiveness of each tender document. For purposes of these paragraphs, a substantially responsive tender is one which conforms to all the terms and conditions of the tender documents without material deviations. The Privatization Commission s determination of a tender s responsiveness shall be based on the contents of the tender itself without recourse to extrinsic evidence If a tender is not substantially responsive, it will be rejected by the Privatization Commission and may not subsequently be made responsive by the tenderer by correction of the nonconformity. Page 12 of 45

13 2.21. Conversion to Single currency Where other currencies are used, the Privatization Commission will convert those currencies to Kenya shillings using the selling exchange rate on the date of tender closing provided by the Central Bank of Kenya Evaluation and Comparison of Tenders The Privatization Commission will evaluate and compare the tenders which have been determined to be substantially responsive as described in the Bid Appendix of instructions to tenderers The Privatization Commission s evaluation of a tender will take into account, in addition to the tender price, the following factors, in the manner and to the extent indicated in paragraph (a) Operational plan proposed in the tender; (b) Deviations in payment schedule from those specified in the Special Conditions of Contract The following evaluation methods will be applied. (a) Operational Plan The Privatization Commission requires that the services under the Invitation for Tenders shall be performed at the time specified in the Schedule of Requirements. Tenderers offering to perform longer than the Privatization Commission s required delivery time will be treated as non responsive and rejected. (b) Deviation in payment schedule Tenderers shall state their tender price for the payment on schedule outlined in the special conditions of contract. Tenderers will be evaluated on the basis of this base price. Tenderers are, however, permitted to state an alternative payment schedule and indicate the reduction in tender price they wish to offer for such alternative schedule. The Privatization Commission may consider the alternative payment schedule offered by the selected tenderer The Tenderer Evaluation Committee shall evaluate the tender within 30 days from the date of opening the tender. Page 13 of 45

14 2.23 Contacting the Privatization Commission No tenderer shall contact the Privatization Commission on any matter relating to its tender, from the time of tender opening to the time the contract is awarded Any effort by a tenderer to influence the Privatization Commission in its decision on tender evaluation, tender comparison, or contract award may result in the rejection of the Tenderers tender Post-qualification The Privatization Commission will verify and determine to its satisfaction whether the tenderer that is selected as having submitted the lowest evaluated responsive tender is qualified to perform the contract satisfactorily The determination will take into account the tenderer s financial and technical capabilities. It will be based upon an examination of the documentary evidence of the tenderer s qualifications submitted by the tenderer, as well as such other information as the Privatization Commission deems necessary and appropriate An affirmative determination will be a prerequisite for award of the contract to the tenderer. A negative determination will result in rejection of the Tenderer s tender, which event the Privatization Commission will proceed to the next lowest evaluated tender to make a similar determination of that Tenderer s capabilities to perform satisfactorily Award Criteria Subject to paragraph 2.29 the Privatization Commission will award the contract to the successful tenderer whose tender has been determined to be substantially responsive and has been determined to be the lowest evaluated tender, provided further that the tenderer is determined to be qualified to perform the contract satisfactorily To qualify for contract awards, the tenderer shall have the following:- (a) Necessary qualifications, capability, experience, service, equipment and facilities to provide what is being procured. (b) Legal capacity to enter into a contract for procurement Page 14 of 45

15 (c) (d) Shall not be insolvent, in receivership, or in the process of being wound up and is not the subject of legal proceedings relating to the foregoing. Shall not be debarred from participating in public procurement The Privatization Commission s Right to accept or reject any Tender The Privatization Commission reserves the right to accept or reject any tender, and to annul the tendering process and reject all tenders at any time prior to contract award, without thereby incurring any liability to the affected tenderer or tenderers or any obligation to inform the affected tenderer or tenderers of the grounds for the Privatization Commission s action. If the Privatization Commission determines that none of the tenders is responsive, the Privatization Commission shall notify each tenderer who submitted a tender The Privatization Commission shall give prompt notice of the termination to the tenderers and on request give its reasons for termination within 14 days of receiving the request from any tenderer A Tenderer who gives false information in the tender document about its qualification or who refuses to enter into a contract after notification of contract award shall be considered for debarment from participating in future public procurement Notification of Award Prior to the expiration of the period of tender validity, the Privatization Commission will notify the successful tenderer in writing that its tender has been accepted The notification of award will signify the formation of the contract subject to the signing of the contract between the tenderer and the Privatization Commission pursuant to clause 2.9 (Price Schedule form Appendix II). Simultaneously the other tenderer shall be notified that their tenders were not successful Upon the successful Tenderer s furnishing of the performance security, the Privatization Commission will discharge its tender security to the unsuccessful tenderers. Page 15 of 45

16 2.28 Signing of Contract At the same time as the Privatization Commission notifies the successful tenderer that its tender has been accepted, the Privatization Commission will simultaneously inform the other tenderers that their tenders have not been successful Within fourteen (14) days of receipt of the Contract Form, the successful tenderer shall sign and date the contract and return it to Privatization Commission The contract will be definitive upon its signature by the two parties The parties to the contract shall have it signed within 30 days from the date of notification of contract award unless there is an administrative review request Performance Security The successful tenderer shall furnish the performance security in accordance with the Conditions of Contract, in a form acceptable to the Privatization Commission Failure by the successful tenderer to comply with the requirement of this paragraph or paragraph shall constitute sufficient grounds for the annulment of the award and forfeiture of the tender security, in which event the Privatization Commission may make the award to the next lowest evaluated tender or call for new tenders Corrupt or Fraudulent Practices The Privatization Commission requires that tenderers observe the highest standard of ethics during the procurement process and execution of contracts. A tenderer shall sign a declaration that he has not and will not be involved in corrupt or fraudulent practices The Privatization Commission will reject a proposal for award if it determines that the tenderer recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question Further, a tenderer who is found to have indulged in corrupt or fraudulent practices risks being debarred from participating in public procurement in Kenya. Page 16 of 45

17 APPENDIX TO INSTRUCTIONS TO TENDERERS (ITT) The following information for the procurement of insurance services shall complement, supplement, or amend, the provision on the instructions to tenderers. Wherever there is a conflict between the provision of the instructions to tenderers and the provisions of the Appendix of Instructions to Tenderers, the provisions of the Bid Appendix of instructions to tenderers herein shall prevail over those of the instructions to tenderers. Instruction to tender reference Particulars of Appendix of instructions to tenderers to instructions to tenderers 2.1 Only Insurance Underwriters are eligible Tender Security shall be Kshs. 80, from a Reputable Bank valid for 120 days from date of tender closing in form of a Bank Guarantee as per the prescribed format Tender validity will be 90 days (b) The inner and outer envelopes shall bear the Words: (i) Tender Name: Provision of staff Medical Insurance Policy and Provision of Group Personal Accident (GPA) Policy (ii) (iii) Tender No: PC/004/ DO NOT OPEN BEFORE: 6 th October 2016 at p.m. (iv) The documentation supporting the qualification requirements should be submitted in separate envelope from the financial bid and both envelopes should be properly sealed and clearly marked and enclosed in one bigger outer envelope. The envelopes should each contain the following:- TECHNICAL PROPOSAL ENVELOPE SHOULD CONTAIN:- The qualifications documentations as prescribed under the special conditions. The technical envelope should not contain any financial information. THE FINANCIAL BID ENVELOPE SHOULD CONTAIN:- A dully completed Form of Tender and price schedule as per the format attached on section VI (A & B) Form of Tender. Only those firms that meet the preliminary and technical qualifications requirements above will have their financial bids opened. The other bids for non-responsive firms will be returned unopened. Page 17 of 45

18 v) Tenders must be addressed and delivered to: The Executive Director/CEO, Privatization Commission, Extelcom House, 11 th Floor Haile Selassie Avenue, P. O. Box , NAIROBI Tenders must be received on or before 6 th October 2016 at noon Bulky tenders will be received by Procurement Unit and recorded and signed for in a register by the representative of the Company Tenders will be opened at the time stated in the presence of tenderers or their representatives EVALUATION CRITERIA (please refer to special conditions of contract under section IV of this document (page 25-27) POST QUALIFICATION 2.24 The post qualification of the tenders received by the Privatization Commission will be undertaken on the basis of the customer reference checks based on information provided by your firm. (The names, addresses, telephone numbers and contact person of at least five (5) of your client that Privatization Commission intend to contact to verify the details provided). Page 18 of 45

19 SECTION III - GENERAL CONDITIONS OF CONTRACT TABLE OF CONTENTS Page 3.1 Definitions Application Standards Use of contract documents and information Patents rights Performance security Delivery of services and documents Payment Prices Assignment Termination for default Termination for insolvency Termination for convenience Resolution of disputes Governing language Applicable law Force majeure Notices 24 Page 19 of 45

20 SECTION III GENERAL CONDITIONS OF CONTRACT 3.1 Definitions In this contract, the following terms shall be interpreted as indicated:- (a) The Contract means the agreement entered into between the Privatization Commission and the tenderer, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference (b) therein. The Contract Price means the price payable to the tenderer under the contract for the full and proper performance of its contractual obligations. (c ) The Service means services to be provided by the tenderer including any documents, which the tenderer is required to provide to the Privatization Commission under the contract. (d) (f) (g) (h) The Privatization Commission means the Commission established under the Privatization Act 2005 which is the organization Procuring the Services. GCC means the General Conditions of contract contained in this section. SCC means the Special Conditions of Contract. Day means calendar day. 3.2 Application These General conditions shall apply to the extent that they are not superseded by provisions of other part of the contract Standards The services provided under this contract shall conform to the standards mentioned in the schedule of requirements. 3.4 Use of Contract Documents and Information The Tenderer shall not, without the Privatization Commission s prior written consent, disclose the Contract, or any provision thereof, or any specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the Privatization Commission in connection therewith, to any person other than a person employed by the Tenderer in the performance of the contract The Tenderer shall not, without the Privatization Commission s prior written consent, make use of any document or information enumerated in paragraph above. Page 20 of 45

21 3.4.3 Any document, other than the contract itself, enumerated in paragraph shall remain the property of the Privatization Commission and shall be returned (all copies) to the Privatization Commission on completion of the contract s or performance under the contract if so required by the Privatization Commission. 3.5 Patent Rights The Tenderer shall indemnify the Privatization Commission against all third party claims of infringement of patent, trademark, or industrial design rights arising from use of the services under the contract or any part thereof. 3.6 Performance Security Within thirty (30) days of receipt of the notification of Contract award, the successful tenderer shall furnish to the Privatization Commission the performance security where applicable in the amount specified in SCC The proceeds of the performance security shall be payable to the Privatization Commission as compensation for any loss resulting from the Tenderer s failure to complete its obligation under the contract The Performance security shall be denominated in the currency of the contract, or in a freely convertible currency acceptable to the Privatization Commission and shall be in the form of:- (a) (b) (c) Cash A bank guarantee Letter of credit The Performance security will be discharged by the Privatization Commission and returned to the candidate not later than thirty (30) days following the date of completion of the Tenderer s performance of obligations under the contract, including any warranty obligations, under the contract. 3.7 Delivery of services and documents Delivery of the services shall be made by the Tenderer in accordance with the Terms specified by the Privatization Commission in the schedule of requirements and the special conditions of contract. Page 21 of 45

22 3.8 Payment The method and conditions of payment to be made to the Tenderer under this contract shall be specified in SCC Payment shall be made promptly by the Privatization Commission, but in no case later than sixty (60) days after submission of an invoice or claim by the provider. 3.9 Prices Prices charged by the Tenderer for Services performed under the contract shall not, with the exception of any price adjustments authorized in SCC vary from the prices quoted by the tenderer in its tender or in the Privatization Commission s request for tender validity extension as the case may be. No variation in or modification to the terms of the contract shall be made except by written amendments signed by the parties Contract price variations shall not be allowed for contracts not exceeding One Year (12 months) Where contract price variation is allowed the variation shall not exceed 10% of the original contract price Price variation requests shall be processed by the Privatization Commission within 30 days of receiving the request Assignment The Tenderer shall not assign, in whole or in part, its obligations to perform under this contract, except with the Privatization Commission s prior written consent Termination for Default The Privatization Commission may, without prejudice to any other remedy for breach of contract, by written notice of default sent to the Tenderer terminate this contract in whole or in part: (a) If the Tenderer fails to provide any or all of the services within the period(s) specified in the contract, or within any extension thereof granted by the Privatization Commission. (b) If the Tenderer fails to perform any other obligation(s) under the contract. Page 22 of 45

23 In the event the Privatization Commission terminates the contract in whole or in part, it may procure, upon such terms and in such manner as it deems appropriate, services similar to those un-delivered and the Tenderer shall be liable to the Privatization Commission for any excess costs for such similar services. However the Tenderer shall continue performance of the contract to extent not terminated Termination for Insolvency The Privatization Commission may at any time terminate the contract by giving written notice to the Tenderer if the Tenderer becomes bankrupt or otherwise insolvent. In this event, termination will be without compensation to the Tenderer, provided that such termination will not prejudice or affect any right of action or remedy, which has accrued or will accrue thereafter to the Privatization Commission Termination for Convenience The Privatization Commission by written notice sent to the Tenderer, may terminate the contract in whole or in part, at any time for its Commission convenience, the extent to which performance of the Tenderer of the contract is terminated and the date on which such termination becomes effective For the remaining part of the contract after termination the Privatization Commission may elect to cancel the services and pay to the Tenderer an agreed amount for partially completed services Resolution of Disputes The Privatization Commission and the Tenderer shall make every effort to resolve amicably by direct informal negotiations and disagreement or disputes arising between them under or in connection with the contract If after thirty (30) days from the commencement of such informal negotiations both parties have been unable to resolve amicably a contract dispute either party may require that dispute be referred for resolution to the formal mechanism specified in the SCC Governing Language The contract shall be written in the English Language. All correspondence and other documents pertaining to the contract, which are exchanged by the parties shall be written in the same language. Page 23 of 45

24 3.16 Applicable Law The contract shall be interpreted in accordance with the laws of Kenya Force Majeure The Tenderer shall not be liable for forfeiture of its performance security, or termination for default if and to the extent that its delay in performance or other failure to perform its obligations under the Contract is the result of an even of Force Majeure Notices Any notices given by one party to the other pursuant to this contract shall be sent to the other party by post or by Fax or and confirmed in writing to the other party s address specified in the SCC A notice shall be effective when delivered or on the notices effective date, whichever is later. Page 24 of 45

25 SECTION IV: SPECIAL CONDITIONS OF CONTRACT (SCC) 4.1 Special Conditions of Contract as relates to the General Conditions of contract Reference of General Special conditions of contract Conditions of Contract 3.6 Performance security 10% of the contract sum from a Reputable Bank in the prescribed format covering the period of the contract. 3.7 Delivery of Service For a period of twelve (12) months, this may be renewable in accordance with the law subject to satisfactory performance 3.8 Payment As per the contract agreement 3.9 Price adjustment N/A An arbitrator appointed by the Attorney General 3.18 Notices Executive Director/CEO, Privatization Commission, Extelcom House, 11 th Floor Haile Selassie Avenue, P. O. Box , Nairobi. info@pc.go.ke 4.2 Conditions to be met by the Insurance Company The following special conditions will form the evaluation criteria for the bids submitted as follows:- EVALUATION REQUIREMENTS STAGE 1 MANDATORY REQUIREMENTS TO BE MET BY THE INSURANCE PROVIDER :- 1. Must submit a copy of the registration certificate/incorporation certificate 2. Must submit two separate sealed envelopes clearly marked as either Technical and or Financial. 3. Must submit one original and a copy of each proposal (separate technical and financial). 4. Must submit a Bid Security of Kshs. 80, from a reputable bank in the prescribed format in form of a bank guarantee valid for a period of 120 days from the date of tender closing. 5. Must submit a copy of valid Tax Compliance Certificate. 6. Must be registered with the Insurance Regulatory Authority as an INSURANCE UNDERWRITER for the current year and a copy of the current Page 25 of 45

26 license must be submitted as evidence. 7. Must have done Annual Gross premiums in previous years (2014 and 2015) of at least Kshs.50 million in medical insurance business. 8. Must have a paid up capital of at least Kshs. 100 million. 9. Must provide a written proof of credit worthiness from the firm s bankers 10. Must provide evidence of Re Insurance arrangements of medical insurance business. 11. Must submit evidence on financial standing such as profit and loss statements and audited accounts for the past 2 years (2014 and 2015) signed by certified auditor(s). 12. Must provide qualifications and experience in insurance matters of at least 3 (three) key members of staff who will manage the Commissions scheme (submit inform of CV) 13. Must be a valid member of the Association of Kenya Insurers (AKI) (copy of certificate must be attached) 14. Must provide information regarding litigation in which the insurance Company is in, the parties concerned and the disputed amount. 15. Must provide evidence/recommendations from at least 5 (five) of the listed major hospitals served (on hospitals letterhead). 16. Must provide extent of coverage considering remote county areas with limited big hospitals. (County coverage is considerable). 17. Must provide a list of medical specialists in its panel of consultants. A statement that a consultant/medical specialist not currently in the tenderers panel may be included in the list if needed is also required. 18. Must confirm sensitization of staff on the usage of cover(health talk) 19. Must submit the attached duly completed and signed/ stamped mandatory Confidential Business Questionnaire Page 26 of 45

27 EVALUATION CRITERIA STAGES: STAGE 1: EVALUATION ON THE MANDATORY REQUIREMENTS The mandatory requirements will be evaluated on a YES or NO basis. The Insurance Company must meet all the above mentioned mandatory requirements to be considered for stage 2 below. STAGE 2: RANKING STAGE The Insurance Company that fulfills all the mandatory requirements will be ranked using the following criteria:- CRITERIA Maximum points 1 Specific experience of the Insurance Company in provision of similar services (Attach at least five (5) letters of evidence from the clients) 40 2 Qualifications and competence of at least three (3) key members of staff of the Company 3 Demonstrate the Financial stability to provide services:- Paid up capital (100M) - 5points Annual gross premiums (50M)- 10points Audited accounts (2014/2015) - 5points 4 Demonstrate the technical capacity to fulfill Commission s requirements: Recommendations from Hospitals (5 Letters on Hospital letterhead) 15 marks) Hospital network (10 marks) Enhanced cover with additional benefits (5 marks) Total scores 100 Pass mark 75 Note: a) A bid that does not meet the above minimum requirements will be disqualified from further evaluation regardless of the quoted Financial proposal. b) Only financial proposals of firms that meet the minimum requirements shall be opened for consideration. The financial proposals of the non-responsive firms will remain unopened and returned to the bidder after the conclusion of the procurement process. STAGE 3: FINANCIAL EVALUATION The firm that is technically responsive and has provided the lowest in cost will be considered for award. Page 27 of 45

28 SECTION V - SCHEDULE OF REQUIREMENTS A) STAFF MEDICAL INSURANCE POLICY (FOR 12 MONTHS W.E.F 1 ST NOVEMBER 2016) Particulars of Insurance Staff Medical Insurance policy Benefits Details of the minimum benefits expected under the cover Medical cover Inpatient 1)In patient treatment, accommodation and emergency cover 2) Hospital accommodation for one accompanying parent of a child under seven years of age 3) Internal /External Appliances in the hospital Sum Assured (Kshs.) Medical cover outpatient -as indicated below under 3(a). Medical cover Outpatient Additional benefits 4) Excess of cover 5)Pre-existing and Chronic illness 6)HIV/AIDS related ailments 7) KEPI Vaccines as approved by Ministry of Health & WHO 1) Outpatient cover ( general, specialist, laboratory and X-ray, prescription drugs 2) Hospital Treatment and services (Hospital charges, nursing care, diagnostic, laboratory, Physician, surgeon, anesthetists,,physiotherapist fees, theatre charges, ICU/HDU coverage, Specialist consultants, Drugs, dressing or medications, 3) Cover for insured from 0 age to 60 years (Includes child up to 18 years and extended to 24 years for those in formal education. 4) 24 hours cover and worldwide 5) Evacuation cover both road and air/ambulance services 6)Standard Private room 7) Day care surgery /Home nursing 8)Pre-hospitalization diagnostic services (laboratory, X-ray 9) Local ambulance services 10) Maternity cover (routine obstetrics, ultrasound, routine lab tests, hospitalization, C-Section, pre/ postnatal, vaccination) 11) Optical cover (including reimbursements) 12) Dental cover (include reimbursements) Page 28 of 45 Medical cover outpatient -as indicated below under 3(b).

29 Funeral Expenses 13) Motor Vehicle Reconstructive surgery 14)Internal /External Appliances out of hospital 15)Internal prosthesis procedures 16) Oncology, organ transplant, renal and peritoneal dialysis treatment (In/Out of hospital Pathology, ECG, Computerized Tomography, MRI Scans, Pap- smear, Prostatic surface antigen test, 17)Radiotherapy and Chemotherapy Last expense cover B) GROUP PERSONAL ACCIDENT (GPA) INSURANCE POLICY(FOR 12 MONTHS W.E.F 1 ST NOVEMBER 2016) Particulars of Insurance Group Personal Accident Policy Benefits Details of the minimum benefits expected under the cover 1. Accidental Death 2. Permanent total disablement 3. Temporary disablement 4. Accidental medical expense reimbursement 5. Weekly accident indemnity 6. Last expense Compensation for death or disablement resulting from accidental bodily injury sustained by the insured as well as arising out of the use of aircraft at any time during the period of insurance. 24 hour insurance cover for the insured Sum Assured (Kshs.) 4 x annual salary Details of the Employees to be covered:- 1. Number of the Employees =24 Employees (to be based on the actual staff at the time of bidding) and 64 dependents. 2. The Consolidated Annual Gross salary for 24 No.) Employees = Kshs.68,395, The individual limits is per household i.e. member of staff and a maximum of five (5) dependants as follows:- Page 29 of 45

30 a) Medical Insurance Policy (In patient limits) Job Group (JG) Current Number of employees in each JG Individual limit per Annum (Kshs.) Totals Limits per JG (Kshs.) PC.1 1 4,000, ,000, PC.2 1 2,500, ,500, PC.3 4 1,500, ,500, PC.4 7 1,500, ,500, PC.5 2 1,000, ,000, PC , , PC , , PC , , b) Medical Insurance Policy (Outpatient Limits) Job Group (JG) Number of employees in each JG Individual limit per Annum (Kshs.) Totals Limits per JG (Kshs.) PC , , PC , , PC , , PC , , PC , , PC , , PC , , PC , , ****Based on the actual establishment currently on board. Additional staff who joins the commission will be added to the insurance policy as add-on and a premium paid on prorata basis. 4. Optical and dental limits is Kshs. 30, per each of the insured member 5. The underwriter will be expected to provide the range of services listed below i. Claims management: this should be done through thorough verification of membership/eligibility, proper billing and detection of misuse or abuse e.t.c. ii. Claims payment: this should be done through ensuring prompt payments to medical providers, providing clients requested reports, maintaining balances, ensure timely re-imbursement e.t.c. Page 30 of 45

31 iii. Utilization management: this should be done through ensuring effective and efficient delivery of health care by working with the medical providers, e.t.c. iv. Any other relevant and value adding service Outpatient Cover/Fund Administration The underwriter will be expected to administer a fund deposit made to them by the Commission. The fund/sum will be replenished on a quarterly basis or immediately on exhaustion of seventy five per cent (75%) of the deposited amount, whichever happens first. The initial fund deposit to be made by the Commission shall be KES 300, Page 31 of 45

32 SECTION VI - STANDARD FORMS Notes on the Standard Forms 1. Tender Form - The form of Tender must be completed by the tenderer and submitted with the tender documents. It must also be duly signed by duly authorized representatives of the tenderer. 2. Price Schedule form the price schedule form must similarly be completed and submitted with the tender. 3. Contract Form The contract form shall not be completed by the tenderer at the time of submitting the tender. The contract form shall be completed after contract award and should incorporate the accepted contract price. 4. Confidential Business Questionnaire Form This form must be completed by the tenderer and submitted with the tender documents. 5. Tender Security Form When required by the tender documents the tenderer shall provide the tender security either in the form included hereinafter or in another format acceptable to the Privatization Commission. 6. Performance Security Form The performance security form should not be completed by the tenderer at the time of tender preparation. Only the successful tenderer will be required to provide performance security in the form provided herein or in another form acceptable to the Privatization Commission. Page 32 of 45