Tamilnadu Industrial Development Corporation Ltd. (TIDCO) SELECTION OF CONSULTANT For preparing Detailed Project Report for establishing an Aerospace Advanced Computing and Design Engineering Center at Sriperumbudhur Aerospace Park, Sriperumbudhur Taluk, Kancheepuram District, Tamilnadu, India REQUEST FOR PROPOSAL April, 2016 Chairman and Managing Director Tamil Nadu Industrial Development Corp. Ltd, 19-A, Rukmini Lakshmipathi Salai Egmore, Chennai 600 008 Phone: 044-28553933; Fax: 044-2855 3729 E-mail: cmd.tidco@nic.in; Website: www.tidco.com
Disclaimer The information contained in this Request for Proposal ( RFP ) document or subsequently provided to Bidders, whether verbally or in documentary form by or on behalf of the Tamil Nadu Industrial Development Corporation Ltd (TIDCO) or any of their employees or advisors (collectively referred to as TIDCO Representatives ), is provided to the Bidders on the terms and conditions set out in this RFP document and any other terms and conditions subject to which such information is provided. This RFP document is not an agreement and is not an offer or invitation by TIDCO Representatives to any other party. The purpose of this RFP document is to provide interested parties with information to assist the formulation of their Proposal. This RFP document does not purport to contain all the information each Bidder may require. Certain Bidders may have a better knowledge of the proposed assignment and project than others. Each Bidder should conduct its own due diligence, investigations and analysis and should check the accuracy, reliability and completeness of the information in this RFP document and obtain independent advice from appropriate sources. TIDCO Representatives make no representation or warranty and shall incur no liability under any law, statute, rules or re gulations as to the accuracy, reliability or completeness of the RFP document and concerned with any matter deemed to form part of the RFP Document, the award of the assignment, the information and any other information supplied by or on behalf of TIDCO or otherwise arising in any way from the selection process. The prospective Bidder will be responsible for all obligations to its staff, their payments, complying with the labour laws, minimum wages Act and any other Act relevant for the working of the Bidder s staff. Under no circumstances, TIDCO will be responsible for any noncompliance with statutory requirements of the bidder s staff. TIDCO may in their absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFP document from time-to-time, after intimating the same to the Bidders. TIDCO reserve the right to accept or reject any or all proposals without giving any reasons. The bidding process shall be governed by the laws of India and courts at the State of Tamil Nadu will have jurisdiction over the matter concerning and arising out of RFP document. 1
Contents Chapter - 1... 4 Letter of Invitation...4 Chapter -2... 5 Information about the proposed Project...5 2.1 Aerospace Industry supply chain...5 2.2 Global Aerospace Industry growth...6 2.3 Indian Aerospace Industry Growth...6 2.4 Aerospace Industry- Tamilnadu Scenario...6 2.5 Initiatives of the State Government and TIDCO...7 2.6 The Project Proposal...8 2.7 Project Site Location...9 2.8 Locational Advantage...11 Chapter- 3... 12 Instructions to Bidders...12 3.1 General...12 3.2 Conditions of Eligibility...13 3.3 Cost of Preparation of the Proposals...13 3.4 Cost of RFP document...14 3.5 Time lines...14 3.6 Pre- Bid Meeting...15 3.7 Clarification and amendment to RFP documents...15 3.8 Preparation of Proposal...15 3.9 Fee Proposal...16 3.10 Submission of Bank Guarantee...16 3.11 Earnest Money Deposit...17 3.12 Liquidated Damages...17 3.13 Proposal Evaluation...17 3.14 Negotiations...18 3.15 Award of Contract...19 3.16 Confidentiality...19 2
Chapter- 4... 20 Terms of Reference...20 4.1. Objective of the Assignment...20 4.2 Detailed Scope of Work...20 4.3 Terms of Payment...26 4.4 Reports Deliverables & Timeframe...26 Chapter- 5... 27 Proposal Submission...27 5.1 Technical Proposal Submission...27 5.2 Financial Proposal Submission...27 Chapter- 6... 29 Evaluation Criteria and Methodology...29 6.1 Basis for the Evaluation of Technical Proposal...29 6.2 Parameters for assessing the technical capabilities...29 6.3 Evaluation & Assignment of scores...30 Chapter- 7... 32 Formats...32 7.I Technical Proposal Submission...32 7.2 Format for the Brief description of Bidder (For each member of Consortium)...33 7.3 Financial Capacity of Consultant...34 7.4 Format for Submission of Experience...35 7. 5 Description of the Methodology and work plan for performing the Assignment...36 7. 6 Team Composition and Task Assignments...37 7. 7 Format of Curriculum Vitae of proposed Key staff...38 7.8 Activity (Work) Schedule...40 7.9 Format of Bank Guarantee for Performance Security...41 7. 10 Format for Earnest Money Deposit...42 7.11 Financial Proposal Submission- Format...43 7.12 Format for Consortium Agreement...44 3
Chapter - 1 Letter of Invitation..2016 Dear Sirs, The Government of Tamilnadu has directed Tamilnadu Industrial Development Corporation Ltd (TIDCO) to establish an Aerospace Advanced Computing and Design Engineering center to enable the growth of aerospace industrial sector in the State. Towards this objective, TIDCO has formulated a project proposal for implementing the Aerospace Advanced Computing and Design Engineering center project in the Sriperumbudhur Aerospace Park in Kancheepuram District and plans to prepare a Detailed Project Report ( DPR) for the same through a consultancy firm/ consortium. This document viz. Request for Proposal ( RFP) is being issued for the selection of a competent consultancy firm/ consortium through competitive bidding process to prepare this DPR. This RFP contains the following Chapters 1. Letter of Invitation 2. Information about the proposed project 3. Instruction to Bidders 4. Terms of References 5. Proposal submission 6. Evaluation and Methodology 7. Formats We request you to kindly submit the bids duly completed as per this RFP on or before 3.00 PM on 25.05.2016. Yours faithfully, For Tamil Nadu Industrial Development Corporation Limited For Additional Chief Secretary / Chairman and Managing Director 4
Chapter -2 Information about the proposed Project 2.1 Aerospace Industry supply chain Globally, the aerospace industries are functioning in a structured, systematic and organized manner and they are interlinked through proper supply and value chain proposition. aerospace value chain is characterized by a long project life cycle spanning R&D, engineering design, manufacturing, assembly and aftermarket (spare parts and service). The manufacturing and assembly function is a critical component of the value chain and has high entry barriers in terms of both cost and technology. In the past, OEMs followed a vertically integrated manufacturing approach with participation at each level of the design, development and manufacturing process. As on date more than 80% of the aerospace systems/sub-assemblies and components are procured through outsourcing from different parts of the world. Very few leading larger aerospace system integrators (such as Boeing, Airbus, Embraer, Bombardier, Lockheed Martin etc.,) constitute around 15% of the entire industry. This industry structure has changed into a tier-based system of suppliers participating at each stage, as indicated below: Tier-1 vendors maintain responsibility for providing equipment and systems to the primes. This includes design, assembly, services and the assumption of technical and financial risk. Tier-2 vendors manufacture and develop the required parts according to the specifications provided by OEMs and Tier-1 vendors. Tier-2 vendors product portfolios may also include the provision of aftermarket components and services. Tier-3 vendors are responsible for the supply of basic products and components to vendors that are higher up the hierarchical order. The aftermarket industry involves the maintenance and upgrading required for an airplane, after it leaves the factory. Manufacturers of aftermarket components are either OEMs or Third-party vendors supplying reverse engineered PMA ( Parts Manufacturer Approval) parts. The 5
2.2 Global Aerospace Industry growth The global Aerospace & Defense market is crossed USD one trillion in 2014 and has grown at a CAGR of about 4% over the last five years. These figures include sales of all items including aircraft and parts, missiles, airport equipment, MROs and all other services related to civil aviation including training, engineering and software development etc. Growth is primarily attributed to strong performance of commercial aerospace driven by a surge in passenger travel demand, increasing per capita income and positive global GDP outlook. USA and Europe are the dominant countries in the Aerospace sector however over the years share of other counties has increased from 8% to almost 18% now in the world total production. Stable growth in global GDP, lower commodity prices especially crude oil and strong passenger travel demand imply continued growth in the commercial aerospace subsector. Moreover, the resurgence of global security threats and growth in defense budgets in many countries are all likely to promote global defense subsector revenue growth over the next few years. Consequently, total global A&D sector revenues are estimated to grow 3% in 2016. 2.3 Indian Aerospace Industry Growth The Indian aerospace industry is one of the fastest-growing aerospace markets in the world with an expanding consumer base comprising airlines, businesses and High Net Worth Individuals. The Indian aerospace industry has registered a CAGR of about 10%, higher than the global average of about 4%. Indian market represents about 9% of Asia-Pacific market. The rapid growth of this industry has attracted major global aerospace companies to India. All segments in the aerospace industry, including civil and military aviation and space, are showing a significant level of growth. 2.4 Aerospace Industry- Tamilnadu Scenario The state has major strengths in Auto, IT, Electronics and Hi tech areas and presence of reputed educational institutes like IIT and various engineering colleges which all are necessary precursors for development of successful aerospace industry. 6
Chennai has emerged as the largest electronic hardware manufacturing and exporting hub in India. Electronic hardware industry has important linkage to Aerospace sector especially avionic products and equipment which constitute almost 15% of the Aircraft cost. Further Tamil Nadu is an important IT hub. Information Technology (IT) plays an eminent part in Aerospace Industry. The state accounts for almost 22% share of the high level software/it exports from the country. The state has significant share of the Auto industry sector in the country accounting for around 30% share of the Automobile and Auto component industry of the country. The State has attracted huge investments over the last two years and the majority of these investments are from electronics and automotive market, hence it can be easily upgraded to aerospace component manufacturing market. The strong manufacturing capabilities in automobile and electronics sector, high skilled human resources pool are the major driving factor for the State to emerge as the aerospace manufacturing hub. There are 60 + aerospace component suppliers already operating in Tamilnadu. Some of them are graduating to major Tier II/III suppliers to Global aerospace OEMs and organizations. Apart from manufacturing, Tamil Nadu has 60 + educational institutes including IIT and MIT offering Aeronautical engineering courses, pilot training institutes and colleges providing AME courses. 2.5 Initiatives of the State Government and TIDCO The Government of Tamilnadu focus on implementing Aerospace Park development program (ie) supporting the existing aerospace units technically and attracting more aerospace companies towards creating an integrated ecosystem for Aerospace Industry development covering design, engineering, manufacturing, servicing and maintenance of aircraft for civil and defence sector in Tamilnadu. A separate policy for the development of aerospace industry in the State is on the anvil with the view to achieve more than 30 % share of the Indian Aerospace industry output. As part of the well thought out plan to make the state move up the value chain, in the area of Aerospace and Defence manufacturing by creating strong eco system, TIDCO has embarked in developing the following aerospace projects for specific purposes in multiple locations in Tamilnadu and they will be integrated in logical way in course of time. 7
Aerospace components Manufacturing Park is being developed in Sriperumbudhur (Chennai) in an area of around 260 acres. So, far 12 aerospace companies have been allocated land in this Park. It is expected that at least 40 aerospace components manufacturing companies will have manufacturing facilities in this park by end 2017. Developing an MRO complex in around 50 acres adjoining the existing Chennai Airport for Maintaining, Repairing and Overhauling of Aircrafts. Supporting the aerospace industries for venturing into business jet aircrafts manufacturing Creating an integrated Aerospace park near Hosur or suitable location. 2.6 The Project Proposal The proposal is to create built in space and facilities for Advanced Computing and Design Engineering Centre ( ACDEC), Avionics Complex, Centre of Excellence (R&D facility), Warehousing, Skill Development Center, etc., for Aerospace industries with an built up area of 1 million sq. ft. in 10 acres of land in the Sriperumbudhur Aerospace Park. The center will cater to companies who work on the design of all types aircraft and engines, designing components and sub-systems using new materials, and technologies used for launch vehicles and space explorations. Creating these support system with the objective of ensuring end to end infrastructure & support system for MSME & Large Scale industrial units resulting in cost effective operations. ACDEC will focus on enabling the design of Aerospace and Defense systems including space exploration systems and will be modelled with technical inputs from various universities, industrial clusters and R&D institutions. TIDCO will bring about global partnerships, to design the infrastructure and facilities to make it best in class Eco-system in the world. Preliminary assessment suggests that 1.15 million sq. ft (11.5 lakh sq. ft) including car parking building could be created in two phases and the third phase can be initiated after successful completion of the first two phases. The tentative plan of the facilities are as below: 8
Project Components ACEDC Advance Computing & Engineering Design Centre Built up space In lakh sq ft Phase I Phase 2 2 2 Facilities Super Computers High Secure Data Centre Computer Hardware & Machines Specific Software for Aerospace Components/System Designs Simulation System Virtual Reality Design Centre. 3D Priority facility Proto typing facility Avionics Manufacturing 0.5 1 Space for Avionics Manufacturing Units Centre of Excellence 0.5 1 Aerospace Center of Excellence Aerospace Research Lab Ware Housing 0.5 1 Common warehousing facilities Skill Development 0.5 1 Aerospace skill training institutions Parking facilities 0.5 1 Total 4.5 7 2.7 Project Site Location This project will be created in 10 acres of land within the Aerospace Park being developed in Sriperumbudhur in around 260 acres of land. The project location is in the Vallam village in the Sriperumpudur Taluk, Kancheepuram District, Tamilnadu. The geographical location is Latitude 120 55 2 N to 120 52 23 N and Longitude 790 55 3 E to 790 53 54 E. The location is largely a plain terrain in its topographical characteristics. 9
Proposed site for ACDEC 10
2.8 Locational Advantage The proposed site is located adjacent to the 6 lane highway between Nokia and Oragadam junction and well connected to Chennai and other major cities through road network. The site has good connectivity in terms of road, air & sea as given below: 1. 8 Km from Chennai - Bangalore National Highway (NH4). 2. 5 Km from Sriperumbudur Singaperumalkoil State Highway (SH57). 3. 5 Km from Vandalur Wallajabad Highway 4. 47 Km from Chennai Port. 5. 37 Kms from Chennai Airport. 6. 60 Km from Chennai Central Railway Station. 7. 7 Km away from the proposed Green Field Airport 11
Chapter- 3 Instructions to Bidders 3.1 General i. This Request for Proposal (RFP) document is issued for the purpose of selection of a ii. iii. iv. reputed and capable Consulting Agency / consortium for preparing Detailed Project Report (DPR) for establishing Aerospace Advanced Computing and Design Engineering Center. TIDCO invites the Consulting Agencies/ consortium of Consulting Agencies to submit a Technical Proposal and a Financial Proposal in the prescribed formats as specified elsewhere in this RFP document for the services required. The name, address and telephone numbers of TIDCO official is: Thiru. B. Elangovan, Senior General Manager, Tamilnadu Industrial Development Corporation Limited, 19-A, Rukmini Lakshmipathi Salai, Egmore, Chennai-600 008; Phone: +91-044-28553933; Fax: 91-044-28553729; email: elangovan.tidco@nic.in The Bidder may form a consortium in their respective areas of expertise and render the consultancy to prepare/submit a Detailed Project Report. Requirements for a Consortium v. Proposals submitted by a Consortium should comply with the following additional requirements: a. The number of members in a Consortium would be limited to four members including the Lead Member. The Lead member should be a legal entity and should have completed assignments w.r.t preparation of feasibility study/dpr or providing Advisory/Project Management services/project execution of Aerospace Industry related project. b. The proposal should contain the information on the members required and also include a description of the roles and responsibilities of the members; c. A Bidder who has applied for this assignment in its individual capacity or as part of a Consortium cannot participate as a member of any other Consortium applying for this assignment. 12
d. The consortium may be led by a Leader (Bidder) having done an Agreement with all their associates as set out in the format given as Appendix 5-12 and submit the same with the Proposal. e. TIDCO shall only deal with the Leader, while all associates with the Leader as per submitted agreement shall be liable towards the leader for the assignment/s as awarded. vi. vii. viii. TIDCO will select a Consulting Agency among those who submitted the proposals in accordance with the selection criteria indicated in this RFP document. The Proposal will be the basis for contract negotiations and the Letter of Award (LoA). The Consultants must familiarize themselves with local conditions and take them into account in preparing their Proposals. To obtain first-hand information on the Assignment and on the local conditions, consultants may interact the official named above to ob tain any relevant / additional information on the assignment before submitting a Proposal. 3.2 Conditions of Eligibility i. Technical Eligibility The Bidder or Lead member of the Consortium shall have, over the past five years preceding the proposal due date, completed at least one assignment as per the evaluation criteria I.a specified in para 6.2 of Chapter -6. ii. Financial Eligibility The Bidder or Lead member of the Consortium shall have received a minimum average annual income of Rs. Five crores per annum from professional fees during the past five financial years preceding the Proposal Due Date. (Professional fees hereunder refer to fees received by the Consultant for providing advisory or consultancy services to its clients). 3.3 Cost of Preparation of the Proposals i. The costs of preparing the proposal and of negotiating the contract, including visits to TIDCO, are not reimbursable as a direct cost of the Assignment; and TIDCO is not bound to accept any of the Proposals submitted. 13
ii. iii. TIDCO reserves the right to accept or reject any bid, and to annul the bidding process and reject all bids, at any time prior to the award of Contract, without thereby incurring any liability to the affected bidder or bidders or any obligation to inform the affected bidder or bidders of the grounds for TIDCO s action. TIDCO also reserves the right to terminate the contract on the grounds of negligence of obligations as per the accepted bid conditions or any other reasons not attributable to TIDCO and on account of any Force Majeure events that may be decided solely at the discretion of TIDCO. In such cases the compensation shall be restricted up to the amount paid by TIDCO and no claim whatsoever for any compensation shall be entertained by TIDCO. 3.4 Cost of RFP document i. The cost of this RFP document is Rs.10000/- (Rupees Ten Thousand only). This RFP document can be obtained from TIDCO on payment of non-refundable fee of Rs. 10000/- ( Rupees Ten Thousand Only ) by way of demand draft drawn in favour of TIDCO in any scheduled bank payable in Chennai. ii. Alternately, the RFP document can be downloaded from www.tidco.com and in such iii. cases, the bidders will be required to pay the non-refundable fee as mentioned above at the time of submission of proposals. Any proposal not accompanied by the DD towards the cost of the RFP document shall be rejected as non-responsive 3.5 Time lines Sl Activity Tentative Date No. 1 Advertisement Date of Issue 26.4.2016 2 Last date for receiving queries to be 9.5.2016 answered in pre-bid meeting 4 Pre- bid meeting 10.5.2016 at 3.00 p.m 5 Last date of purchase of RFP document 20.5.2016 6 Last date and time for submission of Bid 25.5.2016 at 3.00 p.m. 7 Opening of Technical Bid 25.5.2016 at 3.30 p.m 14
TIDCO will endeavour to adhere to the date indicated above. However, it reserves the right to effect changes to the above dates, if the need arises. Such changes would be uploaded in TIDCO website (www.tidco.com) or informed to the concerned bidders. 3.6 Pre- Bid Meeting i. A pre- bid meeting will be held on 10.5.2016 at 3.00 p.m at TIDCO office. Any change in date and venue of the pre-bid meeting will be duly intimated to the bidders or uploaded in TIDCO website. 3.7 Clarification and amendment to RFP documents i. Consultants may request clarifications on the RFP document. Any request for clarification must be sent in writing by paper mail, cable, telex, facsimile, e-mail to TIDCO s address. TIDCO will respond by cable, telex, facsimile, or e-mail to such requests and will send copies of the response (including an explanation of the query, but without identifying the source of inquiry) to all bidders. ii. iii. iv. In case the bidders want the queries to be answered in pre-bid meeting, the queries/clarification should be sent to TIDCO before 9.5.2016. At any time before the submission of Proposals, TIDCO may, for any reason, whether at its own initiative or in response to a clarification requested by an invited Consulting Agency, modify the RFP documents by amendment. Any amendment shall be issued in writing through addenda. Addenda shall be sent by mail, cable, telex, facsimile, or electronic mail to all bidders. TIDCO may at its discretion extend the deadline for the submission of Proposals, if need. 3.8 Preparation of Proposal i. Consultants are requested to submit a Proposal written in the English language. ii. Consultants are advised to visit the proposed project location in Sriperumbudhur Aerospace Park, Sriperumbudhur Taluk, Kancheepuram District before submission of a proposal. The location maps, is available with TIDCO for reference. The costs and 15
liabilities if any and arising out of such visits by the consultants are not reimbursable by TIDCO. iii. Proposals must remain valid for 90 days after the submission date. iv. Consultants must submit one original and one additional copy of their proposal. Each Technical Proposal and Financial Proposal should be marked Original or Copy as appropriate. If there are any discrepancies between the original and the copies of the Proposal, the original governs. v. The outer envelope should be super scribed as: Proposals for consultancy assignment for preparing Detailed Project Report for establishing an Aerospace Advanced Computing and Design Engineering Center. vi. The completed Technical and Financial Proposal must be put in separate sealed covers and both together in an outer cover and submitted before due date and time. Any Proposal received after the closing time for submission of proposals shall be returned unopened. vii. After the deadline for submission of proposals, first the Technical Proposal shall be opened immediately by TIDCO. 3.9 Fee Proposal i) The consultants are required to quote a lump sum fixed fee in Indian Rupees (Rupees. words only/-) for carrying out this assignment as per the scope of work ii) The fixed fee quote should include all applicable taxes including local taxes and exclusive of the Applicable Service Taxes. 3.10 Submission of Bank Guarantee The appointed consultants shall submit a Bank Guarantee (BG) for 10% of the value of the assignment as performance guarantee from any Scheduled Bank in favour of Tamilnadu Industrial Development Corporation Ltd enforceable in Chennai in the Format given at Appendix 5-9. The BG shall be submitted within five days of the date of acceptance of the Letter of Award. Failure of the successful bidder to submit the required Bank Guarantee within the time specified shall constitute sufficient grounds for the termination of the Award. The BG shall remain in force as performance security until the satisfactory completion of the contract and 16
will be discharged thereafter. The obtaining of such Guarantee (and the cost of Guarantee) shall be at the expense of the successful bidder. 3.11 Earnest Money Deposit i) The consultants shall furnish an Earnest Money Deposit (EMD) for an amount of Rs. 100000./- ( Rupees One Lakh Only) in the form of Demand Draft drawn in favour of TIDCO from any Scheduled Bank along with the Technical Proposals as per the format Appendix 5 10 ii) Any proposal not accompanied by EMD shall be rejected as non-responsive. iii) The EMD of the successful bidder will be retained as retention money, which will be released after the completion of the assignment. The EMD of the unsuccessful bidders will be returned after completion of the selection process. iv) The EMD shall be forfeited if the bidder withdraws their bid during the period of bid validity or if he fails to take up the work after issue of Letter of Award ( LoA). 3.12 Liquidated Damages In the event of delays in submission of the Final report of the Detailed Project Report vis a vis the Timeframe prescribed for the proposed Deliverables in the Clause 4.4 of Chapter 4 of the RFP pertaining the submission of the Final Report, Liquidated Damages will be payable at the rate of One Percent of the Awarded Lumpsum Fees per week or part thereof of delay, subject to a maximum of Five Percent of the Awarded Lumpsum Fees. 3.13 Proposal Evaluation i. The committee constituted by TIDCO would evaluate the proposals on the basis of their responsiveness to the Terms of Reference, applying the evaluation criteria, sub criteria and point system specified. From the time the bids are opened to the time the contract is awarded, if any consultant wishes to contact TIDCO on any matter related to its proposal, it should do so in writing. Any effort by the Consulting Agency to influence TIDCO in TIDCO s proposal evaluation, proposal comparison or contract award decisions may result in the rejection of the consultant s proposal. 17
ii. Evaluators of Technical Proposals shall have no access to the Financial Proposals until the technical evaluation is concluded. iii. TIDCO would evaluate the proposals on the basis of their responsiveness to the Terms of Reference, applying the evaluation criteria, sub criteria and point system specified. Each responsive proposal will be given a technical score. A proposal shall be rejected at this stage if it does not respond to important aspects of the Terms of Reference or if it fails to achieve the minimum technical score. iv. The Financial Proposals of only those consultants who have scored the minimum 70 marks in the technical proposals shall be opened. v. The Financial Proposals will be opened publicly in the presence of the consultants representatives who choose to attend. The name of the consultant, the quality scores, and the proposed prices will be read aloud and recorded when the Financial Proposals are opened. vi. Once the financial proposals are evaluated, the final selection will be made based on the lowest net cost of the assignment quoted by the technically qualified bidder. 3.14 Negotiations i. Negotiations will be held at TIDCO. The aim is to reach agreement on all points and sign a contract. Negotiations will include a discussion of the Technical Proposal, the proposed methodology (work plan), staffing and any suggestions made by the Consulting Agency to improve the Terms of Reference. TIDCO and Consulting Agency will then work out final Terms of Reference, staffing, and bar charts indicating activities, staff, periods in the field and in the home office, staff-months, logistics, and reporting. The agreed work plan and final Terms of Reference will then be incorporated in the Description of Services and form part of the contract. Special attention will be paid to getting the most the Consulting Agency can offer within the available budget and to clearly defining the inputs required from TIDCO to ensure satisfactory implementation of the Assignment. ii. Having selected the Consulting Agency, TIDCO expects to negotiate a contract on the basis of the experts named in the Proposal. Before contract negotiations, TIDCO requires assurance that the experts will be actually available. TIDCO will not consider substitutions 18
during contract negotiations unless both parties agree. If this is not the case and if it is established that key staff were offered in the proposal without confirming their availability, the Consulting Agency may be disqualified. If negotiations fail, TIDCO will invite the next ranked bidder to negotiate the contract 3.15 Award of Contract A Letter of Award (LOA) will be issued followed by the negotiations. After issuance of LOA, TIDCO will promptly notify other consultants on the shortlist that they were unsuccessful and return the Financial Proposals of those consultants who did not pass the technical evaluation. The selected consultant is expected to commence the Assignment immediately after acceptance of the LOA. 3.16 Confidentiality Information relating to evaluation of proposals and recommendations concerning awards shall not be disclosed to the consultants who submitted the proposals or to other persons not officially concerned with the process, until the winning Consultant has been notified that it has been awarded the contract. 19
Chapter- 4 Terms of Reference 4.1. Objective of the Assignment i. To prepare a Detailed Project Report (DPR) for the purpose of executing the Aerospace Advanced Computing and Design Engineering Center (ACDEC) Project in efficient manner. ii. iii. To validate and review the concept and feasibility of establishing the Aerospace Advanced Computing and Design Engineering Centre Project in the proposed location. To devise the formats and strategy for marketing the Project components and space for attracting the investment from Aerospace and Defence related industries. 4.2 Detailed Scope of Work A. Sector Analysis and Baseline Setting of the Project Analysis of the aerospace sector includes i. Review of available data with TIDCO and collection of additional data/information required for structuring the Project. ii. Investment trends in the aerospace design and engineering sector in the Country and the State. iii. Significance and proposition of the aerospace design and engineering services capabilities in the aerospace manufacturing value chain. B. Devising of the Project Component It is envisioned to build up the aerospace manufacturing ecosystem in structured and gradual manner. The consultant shall identify the requisite project components and facilities that are essentially required for this purpose. The Project components that can be formulated as the supporting facilities to the ACDEC such as Avionics Manufacturing Complex, Warehousing, Center of Excellence, Skill Development Centre etc. are to be specified and formulated in detail. 20
The internal support system and facilities such as Hardware and Software requirements for Aerospace Design Companies, Architectural requirements for components services and HVAC requirements that are to be incorporated as part of the project need to be figured out on each components of the Project C. Assessment of the Project Site i. Analysis, on the suitability of the identified site considering its plot size, configuration, locational advantages, connectivity, existing ambience and the proposed social infrastructure in the proximity of the site etc. ii. iii. Study on various site related parameters such as land use pattern, terrain, flood history, drainage, characteristics etc. Assessment of the availability of water, power, construction material sources, etc v. Development constraints, environmental/ecological sensitive aspects. D. Potential Market Assessment Study The assignment includes the detailed analysis and study on the following aspects i. Assess the growth potential in aerospace and defence manufacturing sector in India and Tamilnadu State taking into consideration of the past trend, proposed investment in this sector etc. ii. iii. iv. The demand for various sub groups in the aerospace sector such as Aerospace design, engineering, services, avionics components, Center of Excellence (R & D), warehousing, skill development, servicing of aircraft components/sub-assemblies etc. The growth and demand drivers and decision variables to substantiate the reason for the prospective investors to locate their facilities/operations in the proposed ACDEC Project. Formulating the possible project structure for channelizing the investments in this project due to the demand created out of the Offset Policy obligations. 21
v. The USP and attractiveness of the proposed ACDEC Project from the point of foreign investors. vi. SWOT analysis on establishing the advantages of ACDEC Project vis-vis other such facilities in India. E. Demand Assessment 1. The demand from the prospective users in terms of Sq.ft built up space for each of the project components. i. Carryout primary survey through structured questionnaire. The survey sample should represent the segments of aerospace sector with respect to this project. ii. iii. iv. Carry out one to one interactions with sub group wise key players and elicit their plans and interest. Consultations with stake holders and extract the views of the prospective tenants in order to formulate the specification and facilities requirement. Target group interactions to find out the perceptions about the location, project facilities, policies etc. and the preferences for sale/lease terms. v. Current sale/lease terms, occupancy levels, absorption periods for the comparable facilities in the vicinity and in the sector elsewhere. 2. The consultant shall identify more appropriate activities/operations/ facilities to be adopted in the ACDEC Project after sources of consultations and successive grounds of eliminations through the following approach. i. List all major products/activities/operations that may be possibly considered based on market studies. ii. Determine the domestic and international market potential of the identified activities and short list those worth considering. 22
iii. List out the promising prospective and clients probable and their space requirement based on the market study. F. Surveys and Investigations i. Consultant shall carry out Topographic survey for the identified site using total station equipment. The survey should capture all the features available within the site. ii. Consultant shall also carry out Geotechnical investigations comprising of boreholes and trail pits at important locations in the project site. The investigations shall be carried out as per relevant standards codes of practice. G. Master Planning & Layout Design i. It is envisioned to create the requisite facilities to ensure this project as the plug and play and one stop investment destination for the aerospace industry. Considering this aspect, the consultant should prepare the Master plan, Layout designing and positioning of the building structure based on suitability of the site in terms of its terrain, drain, plot size, soil condition etc. ii. iii. iv. The Master Plan should include the measurement and dimension of each facility such as buildings, internal roads, storm water drainage, pathways, landscaping, utilities etc. The master plan should confirm the local byelaws, environmental and social aspects and ensure the requirements for the layout and building planning approvals for the respective authorities. Phasing of the project components and construction schedule need to be specified based on the outcome of the demand assessment. v. Two alternative layouts need to be prepared and recommended the best which is technically, financially and environmental bankable. 23
H. Architectural and Engineering Design The consultant should prepare the architectural design, views and plans of each and also combined structures with floor plan, dimension etc. i. The level of the building structure should be efficient and economical considering the permissible Floor Space Index (FSI) ii. iii. iv. The detailed specifications for each facility (building structure) in terms of dimensions, sizes (sq.ft), set back, no. of floors/levels and sizes of each levels, connecting conduits/corridor between each structure etc. Preparation of Bills of Material (BoM) for major materials required for construction. Assessment of earth excavation, piling requirement of the structure, earth work required for site grading, filling material sources. v. Demand assessment for electric power, water, lighting, HVAC requirement, Communications vi. vii. Preparation of specifications and ToR for EPC contractor selection process. Preparation of 3D drawing rendering the architectural views of all components of the project. I. Project Cost Estimation and Commercial Viability Analysis i. Detailed cost estimates for each components of the project need to be prepared taking into account the site specific conditions prevailing cost of materials, rates, etc. The cost of project should include the architectural requirements, cost of capital etc. ii. A detailed Financial Analysis shall be undertaken in order to assess the viability of the Project. The financial viability analysis would be based on the technical data and Demand assessment made by the consultant. The viability assessment shall be carried out by using IRRs, NPVs, DSCR and Pay back method covering the following 24
Estimate project revenues by assessing space absorption pattern and determining lease rent/user fee Estimate Project Capex, periodic asset replacement/maintenance expenditure Estimate operating expenses Project cash flow considering project execution period, phasing and funding mix Assessing financial viability with a horizon of 15 year period with IRR, NPV, DSCR, Pay Back period Sensitivity analysis based on variations in absorption pattern, revenue streams, project cost, debt cost and O&M assumptions. J. Institutional structure of the project i. Recommended institutional structure and setup of the entity i-e. Special purpose Vehicle Company to be created for the project execution. Examine and suggest suitable legal and institutional framework for the project development. K. Approach for effective execution of the project i. The project implementation demands meticulous planning, systematic approach, sequencing, scheduling and other aspects in order to be successfully commissioned and operated. Discuss and suggest appropriate concepts, approach, methodology on project management, engineering management, contract management, quality management, construction management, infrastructure requirements, Environment, Health & safety aspects, commissioning and O & M managements. L. Clearances & approvals i. List out the approvals, permissions, clearances, licenses, etc to be secured from various Domestic / International agencies/ institutions/ authorities for this project from concept to commissioning stage ii. Spell out the regulatory aspects, procedures, formats, time lines, pre requisites studies, approval processes, etc 25
M. Projects schedule i. Based on the past experience for developing and commissioning of such project, realistic time lines for each of the activity should be indicated in form of a Bar Chart. 4.3 Terms of Payment The milestone achievement linked payment schedule as below shall be followed Mile stone Description Upon submission of Preliminary report Upon submission of Interim report Upon submission of Draft Final Report & Presentation to TIDCO Upon Submission of Final Report On approval of Final Detailed Project Report by TIDCO Percentage of contract payment at each stage 25% of the total fees 25% of the total fee 25% of the total fees 15% of the total fees 10 % of the total fees 4.4 Reports Deliverables & Timeframe i) The consultant shall submit ten numbers of hard copies of the final reports. Two soft copies of each reports/ presentations shall also be submitted to TIDCO. ii) iii) All data, information, analysis collection prepared for this assignment shall be the sole property of TIDCO. The consultant shall not have the rights to disclose any of the information pertaining to the project to the third parties. Time frame for completing the assignment as below: Sl No. Deliverables Activity Time frame ( from the date of acceptance of LoA) 1 Preliminary report Two weeks 2 Interim Report Ten weeks 3 Draft of Detailed Project Report & Presentation to TIDCO Sixteen weeks 4 Final Detailed Project Report Two weeks from date of receipt of comments fromtidco 26
Chapter- 5 Proposal Submission 5.1 Technical Proposal Submission i) Subject to fulfillment of the other terms and conditions of tender document, the bidder/s shall meet the Qualifying Requirements and comply with the terms stipulated hereunder: ii) The Technical proposal submission form (Appendix 5-1) should provide the following information using the attached standard format. a. A brief description of the Consultant firm/consortium of Consultants (Appendix 5-2) b. Financial capability of Consultant (Appendix 5-3) c. Firm's Experience References (For each assignment, the outline of recent experience should indicate, inter alia, the profiles and names of the staff provided, duration of the assignment, contract amount, and firm s involvement.) (Appendix 5-4) d. A description of methodology and work plan for performing this assignment. (Appendix 5-5) e. The list of the proposed staff team, the tasks that would be assigned to each staff team member. (Appendix 5-6) f. CVs recently signed by the proposed professional staff and the authorized representative submitting the proposal. (Appendix 5-7) g. Activity (work) schedule. (Appendix 5-8) h. Format of the Bank Guarantee for Performance security (Appendix 5-9) Note: The above should be supported by relevant documentary evidence. The certificates (work order, Work Completion Certificate) issued by the clients shall form basis for considering experience of work executed. 5.2 Financial Proposal Submission i) Bidders are expected to take into account the requirements and conditions of the RFP documents, in preparing the Financial Proposal. 27
ii) The Financial Proposal should be submitted in separate cover in the Standard Formats prescribed at Appendix 5-11. iii) Bidders must express the price of their services in lump sum amount in Indian Rupees only. iv) During the validity period of the proposal, the consultant is expected to keep available the professional staff proposed for the assignment. v) TIDCO will make its best effort to complete negotiations within this period. If TIDCO wishes to extend the validity period of the proposals, the consultants who do not agree have the right not to extend the validity of their proposals. 28
Chapter- 6 Evaluation Criteria and Methodology 6.1 Basis for the Evaluation of Technical Proposal i) The Selection Process is designed to select a technically strong and cost effective ii) iii) iv) consultant to carry out the scope of work defined else where in this document. The consultants are required to submit both technical and financial proposal. The Maximum points awarded for the technical proposal is 100 points. The financial proposals of those bidders who have scored 70 points or more than 70 points in their respective technical proposal would only be considered for selection. However, TIDCO reserves the rights to relax the minimum technical qualification points depending on the response and need whatsoever. The final selection of the consultants will be made based on the lowest net cost of the assignment quoted by the technically qualified bidder. 6.2 Parameters for assessing the technical capabilities The bidder / consortium is expected to possess relevant and adequate professional experience in such projects as outlined elsewhere in this document. The parameters to be considered for assessing the technical capabilities and the maximum scores to be assigned for each parameter are detailed as below. I. Specific Experience of the bidder Max. Marks a b c Experience in preparation of DPR/Master Planning for the development of sector specific Industrial park/ IT park. Experience in preparation of detailed project report for setting up aero parks/ airports/mro/avionics Complex Experience in market survey for the assessment of demand for industrial parks/it parks/aerospace Parks/ MRO. Max. Marks 10 20 10 29
d II. Experience in preparation of techno economic feasibility study /Financial advisory services for any aerospace component manufacturing / hi precision engineering industry. Domain Expertise and competence of the key staff for the Assignment 20 60 a Exposure to Global aerospace industry, trends & growth., 10 outsourcing/investment strategy of leading players, OEMs in aerospace industry b Experience in Financial advisory on IT/Industrial / aerospace Zone development projects 10 c Specific expertise in dealing with aerospace 10 design/development facilities in aerospace sector d Ability to drive large investment promotion programs and 10 40 market assessment in aerospace sector Total 100 6.3 Evaluation & Assignment of scores I. Specific Experience of the bidder a b Experience in preparation of DPR/Master Planning for the development of sector specific Industrial park/ IT park. Experience in preparation of detailed project report for setting up aero parks/ airports/mro/avionics Complex c Experience in market survey for the assessment of demand for industrial parks/it parks/aerospace Parks/ MRO. d Experience in preparation of techno economic feasibility study /Financial advisory services for any aerospace component manufacturing / hi precision engineering industry. Assignment of score 2.5 marks for each completed assignment. Full marks will be assigned for completed assignments of four projects and above 10 marks for each completed assignment Full marks will be assigned for completed assignments of two projects and above 5 marks for each completed assignment. Full marks will be assigned for completed assignments of two projects and above 10 marks for each completed assignment. Full marks will be assigned for completed assignments of two projects and above 30
II. Domain Expertise and competence of the key staff for the Assignment a Exposure to Global aerospace industry, trends & growth., outsourcing/investment strategy of leading players, OEMs in aerospace industry Assignment of score 2 marks for every year of experience in any aerospace (OEM) industry by any one of the team member proposed for this assignment Full marks will be assigned for 5 years of experience in any aerospace industry possessed by any one of the team member proposed for this assignment b Experience in Financial advisory on IT/Industrial / aerospace Zone development projects c Specific expertise in dealing with aerospace design/development facilities in aerospace sector d Ability to drive large investment promotion programs and market assessment in aerospace sector 5 marks for every project handled by any one of the team members proposed for this assignment on the financial advisory on Industrial area / Zone development project. Full marks will be assigned for completed assignments of two projects and above Atleast one project should have been handled by any one of the team members Any one of the team members should have completed at Least one assignment related to market/investment promotion in the aerospace sector i) For II (a), (b), (c) & (d) above, the particular team member who should be evaluated for each of them can be identified by the bidder. It can be the same person in all categories or can be different people. Cumulative experience of the individual members proposed for this assignment will not be considered for assigning of this score. Note: 1. The Project experience considered for assigning marks in any one parameter will not be considered for assigning mark in other parameter. 2. The Experience of all members of the consortium will be considered for assigning marks 31