AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 1 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Dear Handling Agent, Sub: Cargo Handling at ORD International Airport, Chicago Air India Limited solely at its discretion desires to award Ground Handling Agreement for providing Cargo Handling for Air India flights at ORD International Airport, Chicago. As an authorized Handling Company, we invite you to submit your offer for Cargo Handling services for Air India flights at ORD International Airport in the format provided. Please note that you should offer only those services for which you are the Authorised/Licensed Handling Company by the Competent Authority. You are requested to submit your 'Sealed Offer' on or before June 06, 2011 by 1700 Hours through FedEx or UPS or in person at Airport Address: Air-India UL-220, Terminal 5, O‟Hare Int‟l Airport, Chicago, IL 60666. Following Annexures are enclosed with this Tender Document. (a) Annex I - Information on estimated cargo load and warehouse (b) Annex II - Air India Flight Schedule (c) Annex. IIA - Service Level Agreement (d) Annex III - Services Required (e) Annex IV - Cargo handling services, Standards of Service Expected & Staffing Requirements, procedures, Job requirements (f) Annex V - Handling Company Profile (g) Annex VI - Commercial Offer (h) Annex VII – Integrity Pact Program. Your offer should be in "Two Separate Sealed Envelopes" as given below: ENVELOPE - 1: "Handling Company Profile"-TECHNICAL OFFER Please provide information regarding your Handling Company in general and your capability to provide offered handling services at ORD International Airport in particular. Your response must reply points mentioned in Annex III of this Tender document. In this response please specify the services you intend to offer. “PLEASE DO NOT QUOTE RATES IN THIS ENVELOPE.” AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 2 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ENVELOPE -2: "COMMERCIAL OFFER" Air India‟s requirement of services as per IATA AHM 810, 2008 version is specified in Annex III. Please also refer Annex IV for Air India's standard of service expected and staff requirement along with procedures and job requirements. Please submit your quotation as required in Annex VI of this Tender Document. It may please be noted that, both the sealed envelopes must be clearly super-scribed as stated above and submitted before the due date. Responses received after the due date, time and incomplete response are liable to be disqualified. Air India reserves the right to accept or reject any bids at its own discretion. The offers received will be opened on June 07, 2011 at 1000 hours local time in the office of Airport Manager-Chicago in the presence of those bidders who are interested to be present. Initially, the Technical offers (Envelope I) will be opened. Subsequently, the Commercial offers (Envelope II) will be opened if possible for those bidders who meet Air India requirements technically under Annex IV. If you require any clarifications, please contact: Mr. Aspi Irani, Airport Manager, Chicago, Air India. PHONE: (773) 686 1460 or fax no (773) 686 1461 E-MAIL ADDRESS: firstname.lastname@example.org We shall appreciate if you confirm your participation in this tender. (Airport Manager-ORD, AIR INDIA) AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 3 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ANNEX-I Estimated cargo Load 1. Air India's Summer/Winter schedule, Ref Annex. II 2. Approx. quantum of cargo expected to be handled at ORD Per month. Export Cargo in tonnes Tonnes per month i) Revenue Cargo 500 a) ii) Mail 2 iii) COMAT 1 TOTAL 503 Import Cargo in tonnes b) i) Revenue Cargo 125 ii) Mail/ Courier* .5 iii) COMAT 2 TOTAL 127.5 * Directly delivered by the Ramp Handling agent to the respective agency. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 4 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ANNEX – II AIR INDIA FLIGHT SCHEDULE AT ORD FLIGHT SCHEDULE EFFECTIVE MARCH 2011 DAYS FLGHT NO STA/STD A/C SECTOR DAILY AI127/126 0710/1445 777-300ER HYD-DEL-ORD-DEL-HYD NOTE: 1. The Schedule provided above is for ORD effective March 2011. It may be clearly noted that Schedule are subject to change & intimation of the same will be provided with reasonable Notice. 2. Any changes in schedule with reasonable notice will not be a ground for seeking any price escalation by Handling Agent. A/C configuration: (Subject to change without notice) Passengers ULD Configuration\ F J Y Pallet Container B777-200LR 08 35 195 04 18 B777-300 ER 04 35 303 06 24 Note: Aircraft type and configuration - subject to change without notice. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 5 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ANNEX II A SERVICE LEVEL AGREEMENT Attachment to Annex B ________ This SLA is made between the representatives of Air India Limited (the Carrier) and ______________________________ (the Service Provider) at the location ORD International Airport, concerning service delivery standards for the technical handling services contracted between the two parties. The service delivery standards outlined below are subject to the Carrier operating on schedule and the factors being within the control of the Service Provider. Reasonableness will be applied in the application of the standards. The Service Provider is aware that the delivery of service standards shall not compromise safety procedures. The service elements outlined below are general and are based on prevailing industry standards. They can be extended/reduced or added to as agreed between the parties considering factors such as facilities available, infrastructure, type of aircraft operated etc. at the respective locations. TARGET SERVICE LEVELS 1. GENERAL On Time Performance 100% (No delay acceptable to flight due to Cargo Handling) 2. CARGO 2.1 Export Completion of building up ULD's/bulk cargo with 98% optimum utilization of space thereby maximizing load : D - 3 hrs Ensure cargo moves out from warehouse and is 98% Transported under the Aircraft : D – 2.5 hrs Supervise and ensure smooth and timely loading of all the ULDs/bulk cargo, postal mail/CAT-A, VAL, etc. 100% on to the aircraft : D – 45 min. Confirm cargo load allocation from Load Control 100% (Traffic Office) : D-5 hrs. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 6 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Sending of Pre-alert Special Handling messages 100% To concerned stations : D – 3 hrs. NOTAC to be presented to the Captain D – 30 min. 100% Send FFM D + 1 hr 99% Ratio of cargo booking uplift 100% (Service Provider to follow the procedures / steps as detailed in the attached Annexure IV, the standard of service expected and staff/job requirements and any other instructions issued by the Carrier) 2.2 Import Despatch of cargo to warehouse ATA + 1 hr 98% Examination of Import cargo A + 3 hrs 98% (Service Provider to follow the procedures / steps as detailed in the attached Annexure IV, the standard of service expected and staff/job requirements, and any other instructions issued by the Carrier.) 2.3 ULD UCM message Import - 3 hrs after ATA 100% Includes discrepancy (improper loading, damage etc), tracing, missing units message Export - 01 hr after ATD 100% SCM message - weekly 100% 2.4 Safety PER/DGR/AVI/HUM acceptance strictly as per 100% IATA regulation, Carrier‟s requirement and applicable local law Non-Compliance of Service Norms The handling agent will stand committed for providing satisfactory service for cargo handling in terms of the Agreement. Any unsatisfactory service experienced or any service norm that is not complied with will be addressed as follows: AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 7 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Step 1. Air India will notify handling agent of any service level non-compliance noticed. Step 2. Handling agent will respond in writing giving their investigation and action taken to prevent recurrence. Step 3. In case of repeated non-compliance of Service Norms brought to handling company‟s notice, the Executive Head of the handling company will personally look into the matter and take corrective steps within 03 days and advise Air India accordingly. Step 4. If the situation still does not improve and non-compliance of Service Norms continue, the handling company shall be levied with penalty of USD500 per default and same shall be deducted from the monthly invoice under advice to the Handling Agent. Signed the Signed the At At for and on behalf of for and on behalf of Air India Limited "the Service Provider" "the Carrier" by by AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 8 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ANNEX III SERVICES REQUIRED Following services sections of Annex A of AHM 810 2008 version of Standard IATA Ground Handling Agreement are required to be provided by the handling agent. Cargo handling in the Handling Agents warehouse/facility Section 1 - 1.1.1 to 1.1.4, 1.2.1, 1.2.2, 1.2.3(f,g),1.2.4, 1.2.5, 1.3.2,1.3.3,1.3.7,1.3.8, 1.4.1(A), 1.4.7,1.4.8. Section 4 - 4.1.1, 4.2.1(maintain a message file containing messages pertaining to each flight for a minimum of 90 days), 4.2.2 Section 5 - 5.1.1 to 5.1.6, 5.2.1,5.2.2,5,2.4 5.3.1,5.3.2,5.3.3,5.3.4,5.3.5 5.4.1,5.4.2,5.4.3(a), 5.5.1,5.5.2,5.5.3,5.5.4,5.5.5,5.5.6, 5.6.1 to 5.6.4 5.7 Section 6 - 6.1.1 6.2.2(a)(8), 6.3.1, 6.3.2, 6.3.3(fortnightly reports), 6.3.4, 6.3.5, 6.6.1(a)(3)(4)(b), Section 7 - 7.2.1, 7.4.3(1), AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 9 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ANNEX IV Handling of cargo in Handling Agent's Premises For handling of cargo at ORD International Airport the following functions would have to be performed by the Handling Agency. Cargo Handling Services 1. The Handling Company will provide cargo handling services as specified in Annexure III in their warehouse and provide necessary manpower, supervision services including dedicated Customer Service Agent as specified in point No.15. The job requirement is given in details below. 2. The Handling Company should hold all warehouse equipment for handling the cargo at their cost. 3. The handling company shall provide cooling units for storage of perishable shipments. 4. The Handling Company will provide storage for the ULD's of the Carrier and will submit an inventory report on weekly basis to Air India personnel. 5. The Carrier may display its signage and corporate logo on the Handling Company‟s facility. 6. The Handling Company will ensure that all Govt. formalities like customs, health, safety labour and other mandatory requirements are complied with. 7. Dangerous goods will be accepted by Handling Company's trained personnel in accordance with the latest edition of IATA DGR and Carrier's special instructions. The staff from the Handling Company performing these functions should hold valid certificate, periodically updated. 8. Consumables for ULD build up of export cargo like skids, plastic cover, lashings etc. will be supplied by the Handling Agency and should be inclusive in the quoted rate. 9. The Carrier will retain a charges collect fee of 5%. 10. No extra charges shall be applicable for providing the services at night, or on Saturdays, Sundays or legal holidays. 11. No extra charges shall be applied to the Carrier by the Handling Co., due to the cancellation of the carrier's flight informed 6 hours, prior to STA or due delay if any. 12. The Handling Company will provide cargo screening equipments duly approved by TSA / BCAS and manned by trained and certified personnel for all cargo and mail. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 10 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 13. All arrival/departure activities(warehouse functions) inclusive of ULD movements on AI flights to be completed on Air India's USAS cargo system. Air India will provide access to its system. 14. For cargo destined to points beyond O‟Hare, onward flight/trucking details should be entered in the system. 15. The Handling Agency will provide an office space of approx. 400 Sq. ft. including all utilities and cleaning and dedicated customer agents during normal working hours as indicated below. The Agents will handle enquiries, answer telexes, make arrangements for movement of special cargo and make bookings. The Customer Agents will function under the direction of Air India personnel. 16. The terminal charges for export, import and transhipment consignments will be determined by market practice and will be charged with Air India concurrence. 17. All special cargo such as VAL, PER, HUM, DGR, etc. either for Export or Import are to be escorted, treated and stored in accordance to the instructions of AWB, IATA, Customs & Security regulations. 18. The Carrier will retain a fee, levied on issuance of DO (Delivery Order) on Import Cargo before the consignment is delivered. Security requirement 1. The following will be the security requirement, which will be provided by the Handling Agent i) Strong rooms for keeping the valuable cargo. ii) Provision for storing of any odd size cargo, if any, requiring cooling off period. iii) Premises should be safe guarded by trained personnel with modern security equipment. The selected cargo-handling agency, apart from following DTLR/TSA/BCAS procedures will also have to observe Air India procedures, which will be appraised to them. iv) The Handling Agent will allow Air India security or its authorised agency to carry out their functions in the Handling Agents warehouse. v) The Handling Agent should note that the Air India Security or its authorised agency would escort the cargo while transported to/from warehouse to Air India flight. SPACE FOR COMAT HANDLING: Minimum of 100 sq ft in segregated area with provision for flexible perimeter to accommodate occasional oversized items and use of racking system to maximize storage area. Standard of Service Expected and Staff Requirements: The common job requirements applicable for export/import/flight handling tarmac coordinators/customer services unit and comat handling are given in details as per below. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 11 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 1. EXPORT / IMPORT HANDLING The Handling Agent will be required to deploy staff depending on volume of cargo each day, 365 days a year, for handling of Import / Export cargo besides some dedicated staff as indicated. The reporting pattern of these staff shall be discussed with Air India Officials prior to deployment as per flight schedule. Functions Strength of Staff Required Imports & Exports / Loader-Unloader As required Customer Service Unit 2 (Mon – Fri office working hours 0900 to 1730 hrs) Import / Export Supervisor (Claims) (Managerial Level) 1 Flight Handling Coordinator - As per Flight Schedule As required Supervisor to cover daily operations As required . 2. All the staff / Supervisors should be employees on the payroll of the Company. The warehouse staff should be well trained and qualified to operate handling equipment. 3. All staff of the Handling Company should have valid license for handling Dangerous Goods and meeting all IATA DGR requirements for handling of Air India export and import cargo. 4. The Handling Agent will ensure that due care is taken for avoiding damage to the property. The Handling Agent will also comply with all local health and safety regulations and the security parameters as drawn and established by Air India. In addition, the Handling Agency shall also be solely responsible for strictly adhering to the Local and Federal Regulations. 5. Continuity of staff (trained) in carrying out Cargo functions to be maintained. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 12 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) (A) JOB REQUIREMENTS – EXPORT CARGO 1. Receipt of cargo consignments in Air India warehouse, with all Regulatory Authority requirements and all other relevant documents to be checked by agent receiving/accepting the documents. The handling agent staff shall inspect cargo – condition, count and verify labeling in the presence of security. 2. Check and weigh consignment. If cargo is of valuable nature (silver, gold), Duty Manager or Duty Supervisor to be present during weighing operation. Correction if necessary to be made on the AWB. 3. Reading weight / charges etc., in the presence of the freight delivering agent. 4. Documents to be entered in the system for customs purpose, and assigned to the relevant flight as per the booking sheet, which will be given to the handling agent by Air India sales office every day. 5. Dangerous goods to be checked and DG cargo to be left/secured in the area designated for such cargo. The Handling Company should have a licensed staff to handle dangerous goods – Export / Import in accordance with the current IATA DGR and ensure that such a staff is made available for acceptance and handling of Air India cargo. 6. Ensure all security documentation's are in order, and if not, the same to be obtained from the exporter/agent by telephone/telefax/email in accordance with the applicable law. Also to ask for a copy of the TSA security letter as required by local laws. 7. All customs procedures to be processed, and ERL's to be delivered to customs as per customs requirement. 8. All efforts to be made for utmost utilization of the aircraft space available. This is to be done based on the booking sheets provided to the handler by Air India sales for east bound flight, and further through telephone calls, and finally completion upon receipt of final CPM. Post Office mail and company material also to be forwarded following the above yard sticks, with the ultimate objective for total utilization of the space available. 9. To produce a build sheet for the warehouse staff to build the ULD / loose accordingly. 10. The warehouse staff to act on the build sheet and advice the office staff, who in turn will prepare the final manifest depicting the ULD No. / loose cargo and the contents. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 13 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 11. Supplementary manifest to be prepared to account for the last minute changes on the cargo cartage. 12. Telex messages to be sent within 1 hour of departure of flight to all concerned (local, en route station and destination), regarding the joining load for the flight, with all dangerous goods details or special cargo handling details and any other required information. 13. In case of payload / space restrictions, the cargo load to be adjusted and documents / computer to be updated accordingly. 14. Requisite number of copies of air waybill manifests and tally sheets to be prepared for export and import cargo and forwarded on board for destination requirement and en route station(if required), and distributed to all concerned. 15. AV7 postal mail copy to be collected by the handling agent from Authorities and brought back to the warehouse, which will be received by the warehouse staff. Bags to be checked against mail documents and x-rayed (if same being forwarded within 24 hrs), and forwarded on the first available flight. Likewise Post Office mail delivered landside by the Postal authorities is received by warehouse staff and forwarded on the first available flight. 16. Document M-1 to be raised after mail has been dispatched, copies of which to be forwarded to ORD Accounts and copy given to cargo coordinator. 17. If any dangerous goods on board, then a NOTAC has to be prepared including copy of declaration and copy of relevant blue page from DG Book and produced to the Captain for his signature and obtain signed copy for Load Control Unit(LCU)/staff and flight record. 18. All joining valuable / perishables on board to be advised to security and cargo co- ordinator in the morning. 19. To send the telexes pertaining to flight departure, i.e. valuable cargo, diplomatic mail, perishable cargo, dangerous goods, trans-shipments, UCM and any other special handling. Also, if any cargo offloaded, intimation to be sent to destination. 20. To give joining cargo/mail figures once flight has departed to traffic/LCU staff. 21. To prepare manifest in FFM format after each flight departure. 22. To provide backlog figures as and when required. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 14 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 23. Export Tracing: - Offloaded cargo, missing cargo etc. - At destination to do bond check, and relevant telexes to be sent to the various destinations until the cargo has been traced. 24. Execute export AWB and prepare transfer at source. TFM on behalf of Air India. 25. In case an AWB is used from strong room, the AVYS register must be filled. 26. To manifest and prepare documents for movement of cargo shipped by road. 27. To handle / reply to any claims received from agents. 28. For shipments booked and shipped at Air India office, charges are to be collected on daily basis and accounted in the export MAP with supporting documentation and also advise to Air India. Cash and checks collected, has to be handed over along with a copy of the AWB to Air India on daily basis. At the end of the month, the final MAP along with the documents has to be handed over to AI. In case of credit extended to any agency, invoice will be raised by the handling agent on daily basis and ensure collection and accounting of the money in the export map. 29. All the cargo booked through CASS agency and uplifted over ORD will be audited by AI and data entry to be done by the handling agent on a daily basis through software provided by AI. (B) JOB REQUIREMENTS – IMPORT CARGO 1. Import documents brought from the Air India flights, by Air India coordinator to be segregated into: a) Imports for Chicago b) Imports for trans-shipment. 2. Chicago documents to be fed into the computer for the necessary customs clearance and AMS inputs completed. 3. Trans-shipment documents also to be similarly fed into the computer for obtaining the necessary release note and transfer manifest for the ultimate destinations. 4. To book onward cargo with relevant carrier and obtain confirmation. 5. To arrange for transport to bring import cargo from the aircraft to warehouse and deliver. 6. Arrange for transport to the receiving carrier's warehouse, on or in the close proximity of the airport of arrival of transfer cargo under cover of the transfer manifest. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 15 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 7. To notify consignee or agent of the arrival of the shipment and record the same. 8. Warehouse staff to offload the cargo from bulk lorries and ULD trucks, and then break down and / or empty ULD'S. 9. One import manifest to be given to cargo warehouse supervisor to check the actual cargo arrival in the warehouse, and pieces to be checked against the manifest. 10. On completion of the above, status one to be sent- FLIGHT REPORT / DISCREPENCY & TELEX TO BE SENT TO ORIGIN STATION/SECURITY. 11. Arrange for collection of charges on 'charges collect' consignments as per the airway bills. Cash or check collections and accounts on daily basis and to be handed over to Air India. The collections has to be accommodated in the CC import map with supporting documentary and also a telex to the station of origin 12. Arrange for collection of DO fees as applicable and shall prepare and issue Delivery Order to the consignee/agent, and provide a receipt copy of the DO for Air India record. Cash collections and accounts to be handed over to Air India on daily basis. 13. Release cargo to the consignee or agent upon proper release by customs and other government agencies as required. 14. Take action in accordance with applicable instructions when consignee refuses acceptance or payment, i.e. send telex to originating destination, with follow-up action. IRP to be raised and sent to point of origin. 15. Any shipper built unit handed over to agent / consignee must be recorded, reflecting the identification number and Condition of the unit, and also to ensure that it is returned within 3 days in the same condition as and when handed out. In the event of loss or damage, the handling agent must inform Air India, who in turn will take necessary penile action against the agent / consignee. 16. To report any damage on telex to originating station, and accordingly prepare damage report. The same to be stamped by security. 17. All import tracing i.e. inbound missing cargo, insufficient addresses, no response from importer etc., and disposal instructions to be requested via telex by the handling agent. 18. To do bond check every week with a copy to Air India. 19. Trucks ex USA to be off-loaded by the warehouse staff, and transactions are to be treated as an import inbound flight, except copy 5 of the TI document is stamped by customs and should be filed. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 16 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 20. Pallet stock inventory to be carried out every week, and SCM telex/email about the same to be sent to all concerned unit at Mumbai with a copy to ORDKZAI/ORDKGAI. 21. The container inventory to be carried out every week and SCM telex/email about the same to be sent to all concerned unit at Mumbai with a copy to ORDKZAI/ORDKGAI. 22. To handle / reply to any claims received from agents / shipper / consignee. 23. If cargo mishandled/lost/damaged while in custody of the Cargo Handling agent, the Cargo Handling agent will be liable for the claim arising due same. 24. MAIL HANDLING – Mail to be handed over to postal authority if required and number of bags and AV7s should be logged on a daily basis. Send report to Bombay Mail section along with receipted AV7s from postal authorities. (C) JOB REQUIREMENT - TRANSFER FUNCTIONS i. DIP MAIL Imports a) Prepare transfer manifest Prepare in-bond labels b) All docs taken to Customs for approval and brought back to ensure all shipments transferred same day, if possible. c) All shipments taken physically to respective airlines' warehouse with respective transfer manifest. ii. EXPORTS Receive transfer manifest from interline carrier/trucking company - check Airwaybills and customs approval and other docs. iii. COMAT Consignments for CAO transfer to foreign airlines - prepare transfer manifest and take each consignment to respective foreign airlines' warehouse for acceptance. iv. CARGO For Import consignments-book on telephone with respective airlines, type transfer manifest, and load on truck or physically take to interline carrier. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 17 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) For Export - receive from trucking company/interline carrier, as normal shipment would be checked. (D) JOB REQUIREMENTS/ FLIGHT HANDLING - CO-ORDINATORS 1. The flight coordinators to use the handling agency‟s airside transportation for attending flights. 2. The flight coordinators on duty will function and report to Air India District Cargo Sales Manager / Air India flight coordinator. 3. Check all freight that has been built for the flights and see if anymore allocation available from load control and then organize with warehouse staff and handling agent to build the extra ULD (pallet/containers) or Loose cargo for bulk load and pass weights to load control. Ensure all pallets and containers space is used to the maximum. 4. To check if all documents/manifests are ready for the flight. If valuable cargo being accepted i.e. Gold, to be weighed in coordinators presence and ensured all documents to be amended. 5. To check dangerous goods notification to captain (NOTAC) is made with all relevant copies attached. 6. To advise Transport company, the quantum of load to pick up for the flight. 7. To accept Cat A Bag (diplomatic bag) from Indian High Commission in the morning and manifest the same with copies for Accounts ORD & BOM and copies for flight purser and flight folder. 8. Second coordinator to monitor all cargo leaves the warehouse in the correct position for easy on load straight onto the aircraft. 9. All joining post office mail documents to be listed on daily basis with on forwarding details to post office on weekly basis. 10. Attend incoming flight a) Take over any Cat A Bag from the incoming Flight Purser. b) i) To check for any valuable incoming cargo. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 18 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ii) Load any joining valuable cargo in presence of security fill in valuable note. iii) Ensure all valuable container cargo offloaded. iv) Incoming Valuable cargo to be taken to warehouse and stored in strong room. v) Valuable mail- bag to be personally handed over to post office and receive stamped copy. vi) To ensure all pallets/containers/bulk cargo is correctly offloaded and same taken back to warehouse. c) Second coordinator to ensure Courier mail is offloaded and shifted/taken to Courier Facility. d) If any courier mail short-landed to send appropriated telexes. 11. See departure flight: i) Hand over Cat A Bag joining / transit to Flight Purser. ii) Load joining documents / manifest in Valuable container. iii) See Captain with dangerous goods NOTAC and explain degree of danger of goods and position where same is loaded and once he is satisfied take signature on NOTAC. Give copy of NOTAC to In-flight Supervisor/First Officer and retain the same with flight departure report for office record. 12. Courier mail being accepted has to be X-rayed in coordinators presence by Security staff and each bag has to be tagged. Security letter has to checked and copy of tag attached same to be handed over to Security Manager. Bags to be picked up by Ramp agent to be monitored and taken to aircraft and then loaded and advise all concerned regarding weight to load control. Send telex after departure. 13. In regards to incoming mail on flights from India for ORD / onward destinations, the second Coordinator to go to post office with Ramp agent driver to ensure all ORD bound mail is delivered and documents stamped by Post Office and all onward destined mail to be taken to various airlines and handed over by the coordinator. After receiving stamped mail docs M2 to be made (a list of all bags) and forwarded to Bombay Mail Shed with copy in our flight folder. 14. After flight departure all flight handling reports to be completed. All on-load / offload cargo figures to be passed to Air India load control, ORD and to Mumbai by telex. All valuable / Cat A Bag / joining mail / AOG / Human Remains telexes to be sent. Pallet in/ out inventory to be kept on daily basis and forward to Mumbai on fortnightly basis. Keep register of every flight in and out with all revenues /stores/mail figures on daily basis. 15. Handover on daily basis to Air India copies of i) Import/Export manifest and airway bills ii) Import/Export cash maps and bank deposit slips AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 19 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) (E) JOB REQUIREMENTS - CUSTOMER SERVICES UNIT 1. To handle all inquires, answer telexes, make arrangement for movement of special cargo and make bookings. Pre-alert telexes for cargo needing special attention to be sent to concerned stations. Maintain records for export shipments including filing of CTM. Sort out discrepancies pertaining to export / import consignments. The customer Services Unit will function under the direction of Air India Personnel. Functions to be performed: 1. Post flight computer action on every consignment – freight delivered. 2. Import notification – by telephone / fax. 3. Telephone queries. 4. Cargo bookings. 5. Tracing – mishandled cargo, short-shipments. 6. Flight details/arrival details for export/import shipments. 7. Handle General cargo rates ( TACT ) enquiries. 8. Miscellaneous queries – Storage charges, documentation, special handling of cargo etc. 9. Postal mail statistics – AV7 statement made for every flight for BOM mail office. 10. Auditing of flight – check air waybills for correctness of weight, dimensions, PER clause and other fields. 11. Feed Cargo I statistics. 12. Issue CCAs. 13. Cover for other staff for lunch hour / vacation. Supervisor‟s additional functions: 1. Cargo Claims – export and import. 2. Special customers/cargo requirements/projects. 3. Handling of all queries from Indian missions regarding export, import, diplomatic mail etc. 4. Maintenance of building / equipment including repairs. 5. All correspondence pertaining to customer service. (F) JOB REQUIREMENTS - COMAT HANDLING 1. General COMAT Functions: Handling of all Company material transported by the Carrier. Coordinate with Regional Materials Manager –(R-MMD) office for movement of COMAT/AOG/Critical company consignments. General Functions to be performed: AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 20 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Answer all faxes / telexes giving required / requested information. Find all designated A.O.G.‟s critical, work stoppage consignments and assign them to Q Notes / air waybills. Resolve all discrepancies regarding unpaid invoices ( i.e. find relevant Q Notes / air waybills. Fax or mail requests for invoices / correct P.O. numbers or any other discrepancy to MMD and match same when received. Send reminders for same, if not received. Book Air India cargo A/C only freight. Obtain booking rate and tariff information. Send for C.O.D. payments from MMD. Keep a copy of payment cheques, if received. If consignment returned due no payment, keep copy of slip / return date. Return all consignments to vendor requested by MMD. Notify parties of COMAT / import P/U‟s. Give local P/U for COMAT / imports. Maintain trucking receipts, Q Note / air waybill files etc. Send freight for repacking. Answer telephone requests. 2. COMAT EXPORTS - 1 As regards COMAT, the handling agency is required to carry out exactly the same functions as for any Commercial Export shipment, with the difference that the making of the AWB and the labeling of all packages are done by Air India. For all purposes, it is exactly the same as any Commercial shipment. The functions are - acceptance, documentation, computer feeding of data, labeling, handling of AOG including DG COMAT consignments, transferring of inbound COMAT consignments to final destination, maintaining a record of outbound/inbound COMAT. To liaise with RM-MMD for uplift of AOG/DG COMAT consignments. Functions to be performed: 1. Freight received from UPS / FEDEX / other carriers. 2. Load / store freight into bins according to date / section for delivery. 3. Feed details of each shipment into computer to obtain Q Note / air waybill. 4. Label freight (COMAT number / AOG / Must GO, etc.) 5. Prepare paperwork for export – copies to destinations, MMD and cargo office. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 21 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 3. COMAT IMPORTS - 2 The prospective tenderers to advise if they have the necessary facilities for the customs clearance of imports. In brief, the COMAT shipments are like any other commercial cargo shipments except that the documentation and labeling is done by Air India themselves. Functions to be performed: 1. Prepare / Type 3311 customs forms with copies for customs. 2. When COMAT consignment cleared by customs, match custom papers with tally. 3. Make labels for each consignment and attach same. 4. Deliver to UPS / FEDEX / other approved carrier. 5. Prepare paper work for information of MMD. 6. Answer all telex correspondence requesting for forwarding information from Mumbai /MMD / Engineering. General Cargo Handling Specifications 1. Liaise with local authorities. 2. Indicate the Handling Company is acting as handling agent for Air India. 3. Dispatch and receive all messages in connection with the services performed by the handling company, using Air India originator code, as applicable. 4. Maintain a message file containing all above-mentioned messages pertaining to each flight. 5. Maintain clean, well-lighted facilities for handling of cargo. Protecting cargo from unauthorized access and weather. 6. Take appropriate action to prevent theft of, or damage to, cargo. 7. Ensure safe operation of all equipment in facility. 8. Provide acceptance/certification check for all dangerous goods to be handled per existing procedures and regulations applicable to Air India. 9. Obtain receipt upon delivery of cargo. 10. Maintain all files (e.g. security, dangerous goods, live animal, human remains, mail etc) in accordance with Air India and regulatory requirements. 11. Check all documents to ensure shipment may be carried in accordance with Air India‟s and all applicable regulatory requirements. 12. Place cargo under Customs‟ control, if required, and clear discrepancies in accordance with local regulations. 13. Present to Customs, as required, cargo for physical examination. 14. Take immediate action in accordance with Air India‟s and/or local authorities‟ instructions in respect of irregularities, damage or mishandling of dangerous goods and special cargo shipments. Set up inspection services as required. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 22 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 15. Report to Air India any irregularities discovered in cargo handling. 16. Research and resolve air waybill discrepancy reports. 17. Handle lost, found and damaged cargo matters, as mutually agreed. (Repair or repackage damaged containers/cartons for further carriage.) 18. Notify Air India of complaints and claims, giving supporting data. 19. Resolve customer complaints at first point of contact within established guidelines. 20. Non-delivery notices must be completed and mailed for unclaimed shipments. 21. Take action in accordance with applicable instructions when consignee refuses acceptance or payment. 22. All import short shipments, damages and short landings must be telexed to the origin and transit stations and a proper short shipment and / or damage report filled out. 23. All irregularities must be remarked and updated for quick response. 24. Balance actual daily collections. 25. Deposit collections in Air India account and maintain record. 26. Collect all required collections documentation for forwarding to Accounting Office. 27. Handle company mail, as mutually agreed. 28. All Stationary such as U.S. Customs clearing documents for import and export to be provided by handling agent as per industry practice. For example carrier certificates, inbound transfer documents etc. 29. Handling Agent should provide his own Internet access and computer to comply with U.S. Customs AMS Regulations and submission of export declarations for comat. 30. Cleaning of the office premises provided to AI should be arranged and provided by the handling agency. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 23 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) ANNEX. V HANDLING COMPANY PROFILE Please furnish the following information and other relevant information pertaining to your cargo handling company in general and your facility and capability at ORD International Airport in particular covering the following aspect: Please provide specific answers to each of the following points of this annexure. Response should be sealed and submitted in a separate envelope clearly marked "Handling Company Profile". Please do not quote price in this envelope. 1. Name, Address, Contact Tel No., Fax No., E-Mail address, etc. 2. Please submit a brief resume of cargo handling company. Please confirm that your Handling Company has minimum 03 years of Cargo Handling experience at Chicago. 3. Warehouse space held presently with location address at Chicago. 5 Please confirm that you will be able to meet all staffing, service levels and handling procedural requirements as given in Annex IIA, Annex III and Annex IV. 6 Please give brief description of resources in terms of manpower and cargo handling equipment and warehouse facility held at ORD International Airport. Please specify that the manpower held by you are sufficiently trained in cargo handling/warehouse activity and that they hold authorized and valid DGR approval/certification. 7 Please state if you hold all necessary handling equipment for cargo handling and that you will be in be positioning the equipment as per list given in Annex IA, in the warehouse for handling Air India cargo. 8 Please specify airlines handled for cargo at Chicago by you. 9 Cargo handling Company's approximate financial turnover and tonnage handled annually - by way or providing cargo handling services at Chicago. 10 Whether members of IATA Clearing House. 11 Contact person for Air India for this tender, with contact address and telephone numbers, and brief resume of person, with whom Air India will deal on a day-to-day basis, if the contract is awarded to you. 12 Please confirm that your company is an approved / licensed handling agency by Competent Authority, ORD, for services offered by you. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 24 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 13 Please confirm that you will comply with all requirements under local laws / rules related with health and safety, labour, TSA, FAA and any other applicable regulations. 14 Please give details of training set-up related to cargo handling activities for your staff. Necessary Carrier‟s specific training as decided by Air India will be provided for which no reimbursement will be made to the Handling Agent by the Carrier for deputing their staff to undergo the same. Please confirm if the same is acceptable to your company. 15 Please confirm that the Liability and Indemnity as per Article 8 & 11 of IATA SGHA 2008 version and Termination clause with 60 days notice from either side, is acceptable by you. 16 Please confirm that there will be no escalation in the handling charges in case of change in schedule of operations. 17 Please give the details of staff held in the following categories and flight details: a) No of Staff employed Managerial Skilled Unskilled b) No. Of simultaneous wide-bodied flights you can handle at Chicago. No. of flights that you will be required to handle when Air India flights are on ground - Please specify Day wise position. c) Please provide information on airlines presently handled by you at Chicago 18 GHA will be executed in the form of Annex B simplified version of IATA SGHA, January 2008. The service standard required and procedures enumerated in Annex IV and Service Level agreement including the penalty clause as prescribed in Annex II A will form part of the GHA. Please confirm the same is acceptable to you. 19 Please confirm that resource requirements, procedures and job requirements as given in Annex IV will be complied with. 20 Please confirm Area offered to Air India for the following: a) Office Space --- b) Space for X-ray machine- AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 25 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) c) Secured warehouse space for Cargo Cooling- d) Warehouse space for COMAT - 21 The Handling Company will be deemed technically qualified based on the evaluation criteria given below, for which the minimum qualifying points will be 10. The commercial offer of only technically suitable parties will be opened. EVALUATION CRITERIA a) Minimum points to be obtained to qualify for the final Evaluation process is Ten(10). b) The term “Ground Handling Services” means Cargo Handling only meeting all requirement of „IATA Standard Ground Handling Agreement‟ Annex “A” (January 2008). REQUIREMENT GRADING (in Points) i. Number of years in the business of providing Cargo Handling services for Passenger flights Less than 3 years will not be considered. 3 to 5 years – 1 point 6 to 9 years – 3 points 10 years & above – 5 points ii. Number of airports where you have Cargo Handling Set up One airport – 1 point 2 to 5 airports - 2 points 6 to 9 airports - 3 points 10 airports – 5 points & above iii. Total number of client airlines to which you are providing Cargo Handling services at the airports of your operation. Less than Three (03) client airlines will not be considered. 03 to 05 clients – 1 point 06 to 10 clients – 2 points 11 to 15 clients – 3 points 16 to 20 clients – 4 points 21 & more clients – 5 points iv. On how many flights you had provided Cargo Handling services annually. Please provide maximum numbers of flights handled by you during the year 2009 at any single airport of your operation. Indicate the name of the airport. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 26 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Less than Five Hundred (500) flights annually at any single airport of your operation will not be considered. 500 – 1000 flts. – 1 point 1001 -2000 flts. – 2 points 2001 -3000 flts. – 3 points 3001 -5000 flts – 4 points 5001 & above – 5 points v. Number of airlines conventional & wide-bodied handled at the same time Less than Two (02) airlines for wide-bodied annually at airport of your operation will not be considered. 02 – 04 airlines. – 1 point 05 - 09 airlines – 2 points 10 - 15 airlines. – 3 points 16 -20 airlines – 4 points 21 & above – 5 points vi. Number of Accreditations / Certifications/Approvals for Cargo Handling services held by you. One – 1 point Two – 2 points Three – 3 points Four – 4 points Five – 5 points & above vii. The Annual Turnover of the Company in USD less than USD 0.5 million turnover will not be considered 0.5 to USD 2 millions - 1 point More than 2 to USD 4 millions - 2 points More than 4 to USD 6 millions – 3 points More than 6 to USD 8 millions – 4 points USD 8 millions and above – 5 points Response to be signed by Authorized Signatory with company Seal 22 Please do not quote price in response to this Annexure AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 27 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 23 The following para to be included in the GHA, which is mandatory. "It is expressly understood and agreed by and between (the corporation) and Air India Limited (the Indian PSU) that Air India Limited (the Indian PSU) is entering into this agreement solely on its own behalf and not on behalf of any other person or entity. In particular it is expressly understood and agreed that the Government of India is not a party to this agreement and has no liabilities, obligations or rights hereunder. It is expressly understood and agreed that Air India Limited (Indian PSU) is an independent legal entity with power and authority to enter into contracts solely in its own behalf under the applicable laws of India and general principles of Contract Law. The (Corporation) expressly agrees, acknowledges and understands that Air India Limited. (The Indian PSU) is not an agent, representative or delegate of the Government of India. It is further understood and agreed that the Government of India is not and shall not be liable for any acts, omissions, commissions, breaches or other wrongs arising out of the contract. Accordingly, (Corporation) hereby expressly waives, releases and forgoes any and all actions or claims, including cross claims, impleader claims or counter claims against the Government of India arising out of this contract and covenants not to suit the Government of India as to any manner, claim, cause of action or things whatsoever arising of or under this agreement. 24. Air India is committed to fostering the most ethical and corruption free business environment. AI values its relationships with all Counterparts and deals with them in a fair and transparent manner. Air India is implementing the Integrity Pact Program in cooperation with Central Vigilance Commission (CVC) in respect of all contracts of the value of Rs.10 crores and above. The Vendors would sign the Pact and submit it along with the financial and technical bids. The Integrity Pact Program is attached as Annex- VII. 25. Please confirm whether above is acceptable to you and you agree to include in the GHA to be executed. This is our mandatory legal requirement. Therefore, it forms the part of the GHA. 26. Please confirm that there will be no escalation in handling charges in case of change in schedule of operations. 27. Please confirm that you can commence to provide services effective immediately. 28. Please give location and address of your warehouse at the airport. 29. PLEASE DO NOT QUOTE PRICE IN RESPONSE TO THIS ANNEXURE Signed by Authorized Personnel AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 28 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) CRITERIA FOR SELECTION OF HANDLING AGENTS The Handling Company will be selected based on the following criteria: 1) The Handling Agency should be approved/licenced by FAA/TSA and Airport Authority for providing cargo-handling services at O‟Hare. 2) Experience of minimum 3 years as Cargo Handling Agent at Chicago. 3) Agency must confirm to commence cargo-handling services for Air India flights immediately failing which their offer will be rejected. 4) Agency to execute GHA as per standard IATA 2008 version with indemnity and termination clause. 5) Agency to confirm that they will execute SLA with respective penalty clauses and will perform part of GHA. 6) The period of contract will be 3 years and the rates to be quoted accordingly. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 29 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Annex VI COMMERCIAL OFFER Please respond to each of the following points with specific answers having taken into consideration the following provided with the tender document: 1. Annexure I, 2. Annexure II, IIA 3. Annexure III 4. Annexure IV 5. Annexure V Duly signed response by your authorised signatory should be submitted in a sealed envelope marked clearly "Commercial Offer" . 1. Quote rate for Surface Transportation/Trucking between Chicago to EWR and EWR to Chicago on per kg and per Ton basis. 2. Specify any conditions, limitations, restrictions, surcharges, etc if applicable on your quotations. Also specify application of taxes if included / excluded. 3. Please quote charges for handling Air India Cargo- Import and Export, COMAT & Mail, for a contract period of Three Years, in the format given below In Handling agency‟s Taxes/levies/Additional Warehouse charges applicable if any Handling charges for Import and Export USD _______ per Kg Cargo of up to 400 tons per month. Handling charges for Import &Export USD _______ per Kg Cargo, of up to 500 tons per month Handling charges for Import & Export USD _______ per Kg Cargo of up to 600 tons per month 4 Terminal Handling & Storage Charges - Handling at Handling Agent's warehouse The terminal charges for export, import and transhipment consignments will be determined by market practice and will be charged with Air India components. Government of India shipments and COMAT should be exempt from terminal and storage charges. 5 Mail handling – charges: USD per Kg of mail handled. 6 Service freight handling (COMAT) Please indicate separate rate for import/export of COMAT (Non-revenue Cargo) AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 30 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 7 Please indicate BUP charges per ULD Annex-VII INTEGRITY PACT PROGRAM I. INTRODUCTION Air India Limited (AI) is a premier Public Sector airline (formed with the merger of the erstwhile Air-India and Indian Airlines) engaged in air transportation of passengers and cargo in India and abroad. The brand name of the Company is AIR- INDIA and it conducts its business by benchmarking itself to the highest ethical standards, and adopting the best practices followed by the industry. It does business with a number of domestic and international Bidders, Contractors and Vendors of goods and services (Counterparties). AI is committed to fostering the most ethical and corruption free business environment. AI values its relationships with all Counterparts and deals with them in a fair and transparent manner. In order to achieve these goals, AI is implementing the Integrity Pact Program in cooperation with Central Vigilance Commission (CVC) in respect of all contracts of the value of Rs.10 crores and above. As a part of this initiative, AI will, in consultation with CVC, appoint external Independent Monitors who will help AI in implementing the Integrity Pact Program. The Integrity Pact would be signed by the Principal and the Vendor at the pre-tendering stage itself, and will form part of the Tender document. A pre-signed Integrity Pact by the Principal would form part of the Tender document. The Vendors would sign the Pact and submit it alongwith the financial and technical bids. The ingredients of AI‟s Integrity Pact Program are broadly based on: - - Commitments and Obligation of Air India and its employees - Commitments and Obligation of Counterparties - Violation and Consequences - Independent Monitor - Implementation Guidelines - Role of Independent Monitors. II. COMMITMENTS AND OBLIGATION OF AI a. AI is committed to have the most ethical and corruption- free business dealings with its Counterparties. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 31 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) b. AI values its relationship with all Counterparties and will deal with them in a fair and transparent manner. c. AI and/or its Associates (employees, agents, consultants, advisors, etc.) will not seek or take bribes / undue benefit directly or indirectly for themselves or for third parties. d. In a competitive tender as well as in general procurement, AI will deal with all Counterparties with equity, reason and fairness. e. AI will exclude all Associates who may be prejudiced or have a Conflict of Interest in dealings with Counterparties. f. AI will honour its commitments and make due payments to Counterparties in a timely manner. g. AI will initiate action and pursue it vigorously whenever corruption or unethical behavior occurs. III. COMMITMENTS AND OBLIGATIONS OF THE „COUNTER-PARTY‟ a. The Counterparty, directly or indirectly (through Agent, consultant, advisor, etc.), will not pay any bribes or give illegal benefit to any one to gain undue advantage in dealing with the Principal, AI. b. The Counterparty will not engage in collusion, Price-Fixing, etc. with other Counterparties in dealing with the Principal, AI. c. The Counterparty will not pass on to any third party any of the Principal‟s confidential information unless authorized by the organization. d. The Counterparty will promote and observe best ethical practices within its organization. e. The Counterparty will inform the Independent Monitor: i. If it receives demand for a bribe or illegal payment/benefit and ii. If it comes to know of any unethical or illegal practice in the Principal‟s organization (AI) iii. If it makes any payment to any of AI‟s Associates. f. The Counterparty will not make any false or misleading allegations against AI or its Associates. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 32 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) IV. VIOLATIONS & CONSEQUENCES a. If a Counterparty commits a violation of its Commitments and Obligations under the Integrity Pact Program during the bidding process, it shall be liable to compensate AI by way of Liquidated damages amounting to a sum equivalent to 3% of the value of the offer or the amount equivalent to Earnest Money Deposit/Bid Security, whichever is higher or an amount determined by the Independent Monitor. b. Incase of violation of the Integrity Pact whereby after award of the Contract the Principal (AI) terminates or is entitled to terminate the Contract, AI shall be entitled to demand and recover from the Contractor liquidated damages equivalent to 5% of the contract value or the amount equivalent to Security Deposit/Performance Bank Guarantee, whichever is higher or an amount determined by the Independent Monitor. c. AI may ban and exclude the Counterparty from future dealings until the Independent Monitor is satisfied that the Counterparty will not commit any future violation. d. AI may initiate criminal proceedings against the violating Counterparty, depending on the gravity of the violation. e. In case there is a violation of the Integrity Pact by the Principal (AI) or its Associates (i.e. employees, agents, consultants, advisors, etc.), AI undertakes to take appropriate action against them. f. If the complaint made by a counter-party is found to be frivolous or mischievous, action in the form of certain sanctions would be taken against the said complainant. V. INDEPENDENT MONITOR 1. Chairman & MD, AI, is the authority to appoint Independent Monitor(s) to oversee the implementation and effectiveness of the Integrity Pact Program. The process for their appointment shall be similar to Outside Expert Committee (OEC). For this purpose, AI may constitute a panel of Independent Monitors and the same may be referred to CVC for clearance. 2. The Independent Monitor will be a person of Impeccable Integrity, Knowledgeable of AI‟s business and experienced in commercial activities. 3. It will be a voluntary, non-salaried position of 3 years terms. Independent Monitor will have stature /benefits similar to those of Chairman of the Audit Committee of AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 33 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Board/status of the Directors of AI. The remuneration and perquisites would be similar to the remuneration/perks of independent Directors on the Board of AI. 4. The main objective of the Independent Monitor will be to oversee the implementation of the Integrity Pact Program, to prevent corruption, or any other unethical practices in the implementation of the contract. 5. The Independent Monitor will not have administrative or enforcement responsibilities. He will coordinate his efforts through the CVO or other anti-corruption institutions such as CVC. (He may engage services of outside agencies such as accounting firms, law firms, etc at AI‟s expense, if required, in discharge of his responsibilities after obtaining the approval of the Chairman & M.D.) 6. The Independent Monitor will have access to all offices and internal records of the Principal in respect of the Tender in question. He will also have access to Counterparties‟ records and information regarding its dealing with the Principal. 7. The Independent Monitor will have the right to attend any meetings between the Principal and the Counterparties. As far as possible, the meetings should be scheduled in India. In respect of any meeting to be held outside India, attendance by the Independent Monitor would be decided in consultation with the Chairman & M.D., AI. 8. If the Independent Monitor observes or suspects an irregularity, he will inform the Chairman of AI. Once the Independent Monitor is satisfied that any irregularity has taken place, he may also inform the CVO and CVC. VI. IMPLEMENTATION GUIDELINES To implement the Integrity Pact Program, the following general Guidelines are suggested: a. To select and appoint a Panel of Independent Monitors in consultation with the CVC. b. To get commitment from all Senior Level executives/officials of AI to implement the program. It should be recognized that there may be resistance to Integrity Pact program. c. To develop detailed implementations plans and finalize the Integrity Pact document in consultation with the Independent Monitors. d. To notify all senior staff members, Board of Directors, any other over-sight body of the Organization and major suppliers of AI‟s plans to implement Integrity Pact program, which is to be Included in AI‟s web site and also disclose this initiative to the media. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 34 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) VII. PERIODIC REVIEW & EVALUATION It is recommended that the Board of Directors of AI periodically review the effectiveness of Integrity Pact Program by all or some of the following measures: - 1. The Independent Monitors and senior leadership of AI do an annual self-assessment of Integrity Pact Program effectiveness and identify areas / ways to improve the same. 2. The Independent Monitor will submit an annual report on the progress / effectiveness of Integrity Pact Program to the Board of Directors of AI. 3. AI may conduct an annual 360-degree review (through an outside agency, if required) with senior executives, junior executives, suppliers, and competitors, regarding the effectiveness of the Integrity Pact Program in reducing corruption. Feed-back may be taken from the junior and senior executives of the Principal, suppliers and competitors. 4. AI should meet with CVC on an annual basis to review the effectiveness of the program. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 35 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) INTEGRITY PACT Between Air India Limited (AI) hereinafter referred to as “The Principal”, and hereinafter referred to as “The Bidder/ Contractor” PREAMBLE The Principal intends to award, under laid down organizational procedures, contract(s) for .The Principal values full compliance with all relevant laws of the land, rules, regulations, economic use of resources and of fairness/transparency in its relations with its Bidder(s) and/or Contractor(s). In order to achieve these goals, the Principal will appoint an Independent External Monitor (IEM), who will monitor the tender process and the execution of the contract for compliance with the principles mentioned above. Section 1 – Commitments of the Principal 1. The Principal commits itself to take all measures necessary to prevent corruption and to observe the following principles:- a. No employee of the Principal, personally or through family members, will in connection with the tender for, or the execution of a contract, demand, take a promise for or accept, for self or third person, any material or immaterial benefit which the person is not legally entitled to. The word „take‟ shall also include the past and future. b. The Principal will, during the tender process treat all Bidder(s) with equity and reason. The Principal will in particular, before and during the tender process, provide to all Bidder(s) the same information and will not provide to any Bidder(s) confidential/additional information through which the Bidder(s) could obtain an advantage in relation to the tender process or the contract execution. c. The Principal will exclude from the process all known prejudiced persons and persons who would be known to have a connection or nexus with the prospective bidder. 2. If the Principal obtains information on the conduct of any of its employees which is a criminal offence under the IPC/PC Act or the conduct rules of the Principal, or if there be AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 36 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) a substantive suspicion in this regard, the Principal will inform the Chief Vigilance Officer and in addition can initiate disciplinary actions. Section 2 – Commitments of the Bidder(s)/ contractor(s) 1. The Bidder(s)/ Contractor(s) commit themselves to take all measures necessary to prevent corruption in their dealings with AI. He commits himself to observe the following principles during his participation in the tender process and during the contract execution. a. The Bidder(s)/ Contractor(s) will not, directly or through any other person or firm, offer, promise or give to any of the Principal‟s employees involved in the tender process or the execution of the contract or to any third person any material or other benefit which he/she is not legally entitled to, in order to obtain in exchange any advantage of any kind whatsoever during the tender process or during the execution of the contract. b. The Bidder(s)/Contractor(s) will not enter with other Bidders into any undisclosed agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non- submission of bids or any other actions to restrict competitiveness or to introduce cartelisation in the bidding process. c. The Bidder(s)/Contractor(s) will not commit any offence under the relevant IPC/PC Act; further the Bidder(s)/ Contractor(s) will not use improperly, for purposes of competition or personal gain, or pass on to others, any information or document provided by the Principal as part of the business relationship, regarding plans, technical proposals and business details, including information contained or transmitted electronically. d. The Bidder(s)/Contractors(s) of foreign origin shall disclose the name and address of the Agents/representatives in India, if any. Similarly the Bidder(s)/Contractors(s) of Indian Nationality shall furnish the name and address of the foreign principals, if any. Further details as mentioned in the “Guidelines on Indian Agents of Foreign Suppliers” shall be disclosed by the Bidder(s)/Contractor(s). Further, as mentioned in the Guidelines all the payments made to the Indian agent/representative have to be in Indian Rupees only. Copy of the “Guidelines on Indian Agents of Foreign Suppliers” is placed at (Page nos. 6-7) e. The Bidder(s)/Contractor(s) will, when presenting his bid, disclose any and all payments he has made, is committed to or intends to make to agents, brokers or any other intermediaries in connection with the award of the contract. f. This integrity pact shall override the confidentiality clause, if any, in the offer submitted by the Contractor/Bidder and in the agreement entered into by the Principal with the Contractor/Bidder. 2. The Bidder(s)/Contractor(s) will not instigate third persons to commit offences or acts outlined above or be an accessory to such offences. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 37 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Section 3 - Disqualification from tender process and exclusion from future contracts If the Bidder(s)/Contractor(s), before award or during execution has committed a transgression through a violation of Section 2, above or in any other form such as to put his reliability or credibility in question, the Principal is entitled to disqualify the Bidder(s)/Contractor(s) from the tender process or take action as per the procedure mentioned in the “Guidelines on Banning of business dealings”. Copy of the “Guidelines on Banning of business dealings” is placed at Page nos. 8-16. Section 4 – Compensation for Damages 1. If the Principal has disqualified the Bidder(s) from the tender process prior to the award according to Section 3, the Principal is entitled to demand and recover the damages equivalent to Earnest Money Deposit/Bid Security and other actual damages due to the consequential delay. 2. If the Principal has terminated the contract according to Section 3, or if the Principal is entitled to terminate the contract according to Section 3, the Principal shall be entitled to demand and recover from the Contractor liquidated damages of the Contract value or the amount equivalent to Performance Bank Guarantee. 3. The Contractor/Bidder shall not be entitled to claim from the Principal any amounts either as damages or otherwise, on account of termination. Section 5 – Previous transgression 1. The Bidder declares that no previous transgressions occurred in the last 3 years with any other Company in any country conforming to the corruption approach or with any other Public Sector Enterprise in India that could justify his exclusion from the tender process. 2. If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender process or action can be taken as per the procedure mentioned in “Guidelines on Banning of business dealings”. Section 6 – Equal treatment of all Bidders/Contractors/Subcontractors 1. The Bidder(s)/ Contractor(s) undertake(s) to demand from all subcontractors a commitment in conformity with this Integrity Pact, and to submit it to the Principal before contract signing. 2. The Principal will enter into agreements with identical conditions as this one with all Bidders, Contractors and Subcontractors. 3. The Principal will disqualify from the tender process all bidders who do not sign this Pact or violate its provisions. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 38 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Section 7 –Criminal charges against violating Bidder(s)/Contractor(s)/ Subcontractor(s) If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an employee or a representative or an associate of a Bidder, Contractor or Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the same to the Chief Vigilance Officer. Section 8 – Independent External Monitor/Monitors 1. The Principal appoints competent and credible Independent External Monitor for this Pact. The task of the Monitor is to review independently and objectively, whether and to what extent the parties comply with the obligations under this agreement. 2. The Monitor is not subject to instructions by the representatives of the parties and performs his functions neutrally and independently. He shall report to the Chairman, AI. 3. The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access without restriction to all Project documentation of the Principal including that provided by the Contractor. The Contractor will also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and unconditional access to his project documentation. The same is applicable to Subcontractors. The Monitor is under contractual obligation to treat the information and documents of the Bidder(s)/ Contractor(s)/ Subcontractor(s) with confidentiality. 4. The Principal will provide to the Monitor sufficient information about all meetings among the parties related to the Project provided such meetings could have an impact on the contractual relations between the Principal and the Contractor. The parties offer to the Monitor the option to participate in such meetings. 5. As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so inform the Management of the Principal and request the Management to discontinue or take corrective action, or to take other relevant action. The monitor can in this regard submit non-binding recommendations. Beyond this, the Monitor has no right to demand from the parties that they act in a specific manner, refrain from action or tolerate action. 6. The Monitor will submit a written report to the Chairman, AI within 8 to 10 weeks from the date of reference or intimation to him by the Principal and, should the occasion arise, submit proposals for correcting problematic situations. 7. Monitor shall be entitled to compensation on the same terms as being extended to / provided to Independent Directors on the AI Board. 8. If the Monitor has reported to the Chairman AI, a substantiated suspicion of an offence under relevant IPC/ PC Act, and the Chairman AI has not, within the reasonable time taken visible action to proceed against such offence or reported it to AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 39 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) the Chief Vigilance Officer, the Monitor may also transmit this information directly to the Central Vigilance Commissioner. 9. The word „Monitor‟ would include both singular and plural. Section 9 – Pact Duration This Pact begins when both parties have legally signed it. It expires for the Contractor 3 years after the last payment under the contract, and for all other Bidders 12 months after the contract has been awarded. If any claim is made/lodged during this time, the same shall be binding and continue to be valid despite the lapse of this pact as specified above, unless it is discharged / determined by Board of AI. Section 10 – Other provisions 1. This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered Office of the Principal, i.e. Mumbai. 2. Changes and supplements as well as termination notice need to be made in writing. Side agreements have not been made. 3. If the Contractor is a partnership or a consortium, this agreement must be signed by all partners or consortium members and in the case of a Company by an authorised representative. 4. Should one or several provisions of this agreement turn out to be invalid, the remainder of this agreement remains valid. In this case, the parties will strive to come to an agreement to their original intentions. (For & On behalf of the Principal) (For & On behalf of Bidder/ Contractor) (Office Seal) (Office Seal) Place -------------- Date -------------- Witness 1: (Name & Address) _____________________________ _____________________________ _____________________________ AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 40 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) _____________________________ Witness 2: (Name & Address) _____________________________ _____________________________ _____________________________ _____________________________ AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 41 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) GUIDELINES FOR INDIAN AGENTS OF FOREIGN SUPPLIERS 1.0 There shall be compulsory registration of agents for all Global (Open) Tender and Limited Tender. An agent who is not registered with AI Departments/Stations shall apply for registration in the prescribed Application –Form. 1.1 Registered agents will file an authenticated Photostat copy duly attested by a Notary Public/Original certificate of the principal confirming the agency agreement and giving the status being enjoyed by the agent and the commission/remuneration/salary/ retainer ship being paid by the principal to the agent before the placement of order by AI Departments/Stations. 1.2 Wherever the Indian representatives have communicated on behalf of their principals and the foreign parties have stated that they are not paying any commission to the Indian agents, and the Indian representative is working on the basis of salary or as retainer, a written declaration to this effect should be submitted by the party (i.e. Principal) before finalizing the order 2.0 DISCLOSURE OF PARTICULARS OF AGENTS/ REPRESENTATIVES IN INDIA. IF ANY. 2.1 Tenderers of Foreign nationality shall furnish the following details in their offer: 2.1.1 The name and address of the agents/representatives in India, if any and the extent of authorization and authority given to commit the Principals. In case the agent/representative be a foreign Company, it shall be confirmed whether it is real substantial Company and details of the same shall be furnished. 2.1.2 The amount of commission/remuneration included in the quoted price(s) for such agents/representatives in India. 2.1.3 Confirmation of the Tenderer that the commission/ remuneration if any, payable to his agents/representatives in India, may be paid by AI in Indian Rupees only. 2.2 Tenderers of Indian Nationality shall furnish the following details in their offers: 2.2.1 The name and address of the foreign principals indicating their nationality as well as their status, i.e., whether manufacturer or agents of manufacturer holding the Letter of Authority of the Principal specifically authorizing the agent to make an offer in India in response to tender either directly or through the agents/representatives. 2.2.2 The amount of commission/remuneration included in the price (s) quoted by the Tenderer for himself. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 42 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 2.2.3 Confirmation of the foreign principals of the Tenderer that the commission/remuneration, if any, reserved for the Tenderer in the quoted price (s), may be paid by AI in India in equivalent Indian Rupees on satisfactory completion of the Project or supplies of Stores and Spares in case of operation items . 2.3 In either case, in the event of contract materializing, the terms of payment will provide for payment of the commission /remuneration, if any payable to the agents/representatives in India in Indian Rupees on expiry of 90 days after the discharge of the obligations under the contract. 2.4 Failure to furnish correct and detailed information as called for in paragraph-2.0 above will render the concerned tender liable to rejection or in the event of a contract materializing, the same liable to termination by AI. Besides this there would be a penalty of banning business dealings with AI or damage or payment of a named sum. GUIDELINES ON BANNING OF BUSINESS DEALINGS CONTENTS S.No. Description Page(s) 1. Introduction 9 2. Scope 9 3. Definitions 10 4. Initiation of Banning / Suspension 11 5. Suspension of Business Dealings 11-12 6. Ground on which Banning of Business Dealing can be 12-13 initiated 7. Banning of Business Dealings 13-14 8. Removal from List of Approved Agencies- 14-15 AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 43 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) Suppliers/Contractors etc. 9. Procedure for issuing Show-cause Notice 15 10. Appeal against the Decision of the Competent Authority 15 11. Review of the Decision by the Competent Authority 15 12. Circulation of the names of Agencies with whom Business 16 Dealings have been banned 1. Introduction 1.1 Air India Limited (AI), being a Public Sector Enterprise and ‘State’, within the meaning of Article 12 of the Constitution of India, has to ensure preservation of rights enshrined in Chapter III of the Constitution. AI has also to safeguard its commercial interests. AI deals with Agencies, who have a very high degree of integrity, commitments and sincerity towards the work undertaken. It is not in the interest of AI to deal with Agencies who commit deception, fraud or exercise of coercion or undue influence or other misconduct in the execution of contracts awarded / orders issued to them. In order to ensure compliance with the constitutional mandate, it is incumbent on AI to observe principles of natural justice before banning the business dealings with any Agency. 1.2 Since banning of business dealings involves civil consequences for an Agency concerned, it is incumbent that adequate opportunity of hearing is provided and the explanation, if tendered, is considered before passing any order in this regard keeping in view the facts and circumstances of the case. 2. Scope 2.1 The General Conditions of Contract (GCC) of AI generally provide that AI reserves its rights to remove from list of approved suppliers/contractors or to ban business dealings if any Agency has been found to have committed misconduct, violation of any law or any term of the agreement and also to suspend business dealings pending investigation. If such provision does not exist in any GCC, the same may be incorporated. 2.2 Similarly, in case of sale of material there is a clause to deal with the Agencies/customers/buyers, who indulge in lifting of material in unauthorized AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 44 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) manner. If such a stipulation does not exist in any Sale Order, the same may be incorporated. 2.3 However, absence of such a clause does not in any way restrict the right of Company (AI) to take action/decision under these guidelines in appropriate cases. 2.4 The procedure of (i) Removal of Agency from the List of approved suppliers / contractors; (ii) Suspension and (iii) Banning of Business Dealing with Agencies, has been laid down in these guidelines. 2.5 These guidelines apply to all the Departments/Stations and subsidiaries of AI. 2.6 It is clarified that these guidelines do not deal with the decision of the Management not to entertain any particular Agency due to its poor/inadequate performance or for any other reason. 2.7 The banning shall be with prospective effect, i.e., future business dealings. 3. Definitions In these Guidelines, unless the context otherwise requires: i) ‘Party/Contractor/Supplier/Purchaser/Customer’ shall mean and include a public limited company or a private limited company, a firm whether registered or not, an individual, a cooperative society or an association or a group of persons engaged in any commerce, trade, industry, etc. ‘Party/Contractor/Supplier/Purchaser/Customer’ in the context of these guidelines is indicated as ‘Agency’. ii) ‘Inter-connected Agency’ shall mean two or more companies having any of the following features: a. If one is a subsidiary of the other. b. If the Director(s), Partner(s), Manager(s) or Representative(s) are common; c. If Management is common; d. If one owns or controls the other in any manner; iii) ‘Competent Authority’ and ‘Appellate Authority’ shall mean the following: a. For Company (entire AI) Wide Banning The Executive Director – SBU in charge of Procurement shall be the „Competent Authority‟ for the purpose of these guidelines. Chairman, AI shall be the „Appellate Authority‟ in respect of such cases. b. In case the foreign supplier is not satisfied by the decision of the First Appellate Authority, it may approach AI Board as Second Appellate Authority. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 45 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) c. For Departments / Stations only Any officer not below the rank of Executive Director appointed or nominated by the Functional Director / SBU Head shall be the „Appellate Authority‟ in all such cases. d. For Corporate Office only For procurement of items / award of contracts, to meet the requirement of Corporate Office only, Head of CMMG shall be the “Competent Authority” and Director (Technical) shall be the “Appellate Authority”. e. Chairman, AI shall have overall power to take suo-moto action on any information available or received by him and pass such order(s) as he may think appropriate, including modifying the order(s) passed by any authority under these guidelines. iv) ‘Investigating Department’ shall mean any Department or Unit investigating into the conduct of the Agency and shall include the Vigilance Department, Central Bureau of Investigation, the State Police or any other authority or agency set up by the Central or State Government having powers to investigate. v) ‘List of approved Agencies - Parties/Contractors/Suppliers/ Purchasers/Customers shall mean and include list of approved/registered Agencies - Parties/Contractors/Suppliers/ Purchasers/Customers, etc. 4. Initiation of Banning/Suspension Action for banning/suspension of business dealings with any Agency should be initiated by the department having business dealings with them after noticing the irregularities or misconduct on their part. The Vigilance Department of AI shall have the right to recommend banning/suspension and this shall be binding on the Department/SBU and non-compliance of these recommendations/instructions shall be deemed to be misconduct on the part of the Head of the Department/SBU. 5. Suspension of Business Dealings 5.1 If the conduct of any Agency dealing with AI is under investigation by any department (except Foreign Suppliers of imported coal/coke), the Competent Authority may consider whether the allegations under investigation are of a serious nature and whether pending investigation, it would be advisable to continue business dealing with the Agency. If the Competent Authority, after consideration of the matter including the recommendation of the Investigating Department, if any, decides that it would not be in the interest to continue business dealings pending investigation, it may suspend business dealings with the Agency. The order to this effect may indicate a brief of the charges under investigation. If it is decided that inter-connected Agencies would also come within the ambit of the order of suspension, the same should be specifically stated in the order. The order of suspension would operate for a AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 46 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) period not more than six months and may be communicated to the Agency as also to the Investigating Department. The Investigating Department may ensure that their investigation is completed and whole process of final order is over within such period. 5.2 The order of suspension shall be communicated to all Departmental Heads within the Departments/Stations. During the period of suspension, no business dealing may be held with the Agency. 5.3 As far as possible, the existing contract(s) with the Agency may continue unless the Competent Authority, having regard to the circumstances of the case, decides otherwise. 5.4 If the gravity of the misconduct/violation under investigation is very serious and it would not be in the interest of AI, as a whole, to deal with such an Agency pending investigation, the Competent Authority may send his recommendation to Chief Vigilance Officer (CVO), AI Corporate Office along with the material available. If Corporate Office considers that depending upon the gravity of the misconduct/violation, it would not be desirable for all the Departments/Stations and Subsidiaries of AI to have any dealings with the Agency concerned, an order suspending business dealings may be issued to all the Departments/Stations by the Competent Authority of the Corporate Office, copy of which may be endorsed to the Agency concerned. Such an order would operate for a period of six months from the date of issue. 5.5 For suspension of business dealings with Foreign Suppliers, following shall be the procedure: - i. Suspension of the foreign suppliers shall apply through out the Company including Subsidiaries. ii. Based on the complaint forwarded by ED-Procurement or received directly by Corporate Vigilance, if gravity of the misconduct under investigation is found serious and it is felt that it would not be in the interest of AI to continue to deal with such agency, pending investigation, Corporate Vigilance may send such recommendation on the matter to Executive Director-Procurement to place it before a Committee consisting of the following : 1. Director-Finance/Head of Corporate Finance; 2. SBU Head/Department concerned; 3. ED-Headquarters/Head of Corporate Office; 4. GM-Legal/Head of Corporate Law. The committee shall expeditiously examine the report, give its comments/recommendations within twenty one days of receipt of the reference by ED-Procurement. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 47 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) iii. The comments/recommendations of the Committee shall then be placed by ED-Procurement before the Board of AI and if the Board opines that it is a fit case for suspension, SBU Head may pass necessary orders, which shall be communicated, to the foreign supplier by ED-Headquarters. 5.6 If the Agency concerned asks for detailed reasons of suspension, the Agency may be informed that its conduct is under investigation. It is not necessary to enter into correspondence or argument with the Agency at this stage. 5.7 It is not necessary to give any show-cause notice or personal hearing to the Agency before issuing the order of suspension. However, if investigations are not complete in six months time, the Competent Authority may extend the period of suspension by another three months, during which period the investigations must be completed. 6. Grounds on which Banning of Business Dealings can be initiated 6.1 If the security consideration, including questions of loyalty of the Agency to the State, so warrants; 6.2 If the Director/Owner of the Agency, proprietor or partner of the firm, is convicted by a Court of Law for offences involving moral turpitude in relation to its business dealings with the Government or any other public sector enterprises or AI, during the last five years; 6.3 If there is strong justification for believing that the Directors, Proprietors, Partners, owner of the Agency have been guilty of malpractices such as bribery, corruption, fraud, substitution of tenders, interpolations, etc; 6.4 If the Agency continuously refuses to return/refund the dues of AI without showing adequate reason and this is not due to any reasonable dispute which would attract proceedings in arbitration or Court of Law; 6.5 If the Agency employs a public servant dismissed/removed or employs a person convicted for an offence involving corruption or abetment of such offence; 6.6 If business dealings with the Agency have been banned by the Govt. or any other public sector enterprise; 6.7 If the Agency has resorted to Corrupt, fraudulent practices, coercion, undue influence and other violations including misrepresentation of facts; 6.8 If the Agency uses intimidation/threatening or brings undue outside pressure on the Company (AI or its official in acceptance/ performances of the job under the contract; AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 48 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 6.9 If the Agency indulges in repeated and/or deliberate use of delay tactics in complying with contractual stipulations; 6.10 Willful indulgence by the Agency in supplying sub-standard material irrespective of whether pre-despatch inspection was carried out by Company (AI) or not; 6.11 Based on the findings of the investigation report of CBI/Police/internal Vigilance or any other investigative agency including Government Audit against the Agency for malafide/unlawful acts or improper conduct on his part in matters relating to the Company (AI) or even otherwise; 6.12 Established litigant nature of the Agency to derive undue benefit; 6.13 Continued poor performance of the Agency in several contracts; 6.14 If the Agency misuses the premises or facilities of the Company (AI), forcefully occupies tampers or damages the Company‟s properties including land, water resources, forests / trees, etc. (Note: The examples given above are only illustrative and not exhaustive. The Competent Authority may decide to ban business dealing for any good and sufficient reason). 7 Banning of Business Dealings 7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries. However, the Competent Authority of the Department/Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Department/Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct/default to beyond the Department/Unit. Any ban imposed by Corporate Office shall be applicable across all Departments/Stations of the Company including Subsidiaries. 7.2 For Company-wide banning, the proposal should be sent by ACVO of the Department/Unit to the CVO through the Chief Executive of the Department/Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents except for banning of business dealings with Foreign Suppliers of imported coal/coke. The Corporate Vigilance shall process the proposal of the Department/Unit for a prima-facie view in the matter by the Competent Authority nominated for Company-wide banning. The CVO shall get feedback about that agency from all other Departments/Stations. Based on this feedback, a prima-facie decision for banning/or otherwise shall be taken by the Competent Authority. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 49 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-cause notice to the agency conveying why it should not be banned throughout AI. After considering the reply of the Agency and other circumstances and facts of the case, a final decision for Company-wide banning shall be taken by the Competent Authority. 7.3 There will be a Standing Committee in each Department/Unit to be appointed by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items/award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of Executive Director/General Manager from Finance, Procurement and Legal: i) To study the report of the Investigating Agency and decide if a prima- facie case for Company-wide/Local unit wise banning exists, if not, send back the case to the Competent Authority. ii) To recommend for issue of show-cause notice to the Agency by the concerned department. iii) To examine the reply to show-cause notice and call the Agency for personal hearing, if required. iv) To submit final recommendation to the Competent Authority for banning or otherwise. 7.4 If the Competent Authority is prima-facie of the view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 8 Removal from List of Approved Agencies - Suppliers/Contractors, etc. 8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers/Contractors, etc. 8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries. 8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract. 9 Show-cause Notice AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 50 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 9.1 In case where the Competent Authority decides that action against an Agency is called for, a show-cause notice has to be issued to the Agency. Statement containing the imputation of misconduct or misbehavior may be appended to the show-cause notice and the Agency should be asked to submit within 15 days a written statement in its defense. 9. 2 If the Agency requests for inspection of any relevant document in possession of AI, necessary facility for inspection of documents may be provided. 9.3 The Competent Authority may consider and pass an appropriate speaking order: a. For exonerating the Agency if the charges are not established; b. For removing the Agency from the list of approved Suppliers/Contactors, etc. c. For banning the business dealing with the Agency. 9.4 If it decides to ban business dealings, the period for which the ban would be operative may be mentioned. The order may also mention that the ban would extend to the interconnected Agencies of the Agency. 10 Appeal against the Decision of the Competent Authority 10.1 The Agency may file an appeal against the order of the Competent Authority banning business dealing, etc. The appeal shall be to the Appellate Authority. Such an appeal shall be preferred within one month from the date of receipt of the order banning business dealing, etc. 10.2 Appellate Authority would consider the appeal and pass appropriate order which shall be communicated to the Agency as well as the Competent Authority. 11 Review of the Decision by the Competent Authority Any petition/application filed by the Agency concerning the review of the banning order passed originally by Chief Executive/Competent Authority under the existing guidelines either before or after filing of appeal before the Appellate Authority or after disposal of appeal by the Appellate Authority, the review petition can be decided by the Chief Executive/Competent Authority upon disclosure of new facts/circumstances or subsequent development necessitating such review. The Competent Authority may refer the same petition to the Standing Committee for examination and recommendation. AIR INDIA LIMITED Tender No. GH/CARGO/ORD/049 Page 51 of 51 TENDER FOR CARGO HANDLING AT CHICAGO (ORD) 12 Circulation of the names of Agencies with whom Business Dealings have been banned 12.1 Depending upon the gravity of misconduct established, the Competent Authority of the Corporate Office may circulate the names of Agency with whom business dealings have been banned, to the Government Departments, other Public Sector Enterprises, etc. for such action as they deem appropriate. 12.2 If Government Departments or a Public Sector Enterprise request for more information about the Agency with whom business dealings have been banned, a copy of the report of Inquiring Authority together with a copy of the order of the Competent Authority/Appellate Authority may be supplied. 12.3 If business dealings with any Agency have been banned by the Central or State Government or any other Public Sector Enterprise, AI may, without any further enquiry or investigation, issue an order banning business dealing with the Agency and its inter-connected Agencies. 12.4 Based on the above, Departments/Stations may formulate their own procedure for implementation of the Guidelines.