Pakistan International Airlines

340 Pages·2011·3.88 MB·English

PAKISTAN INTERNATIONAL AIRLINES

INVITATION TO BID FOR ERP IMPLEMENTATION (TERMS OF REFERENCE)

1. Introduction

Pakistan International Airlines Corporation (PIA) has initiated a project to implement an
Enterprise Resource Planning (ERP) solution in order to achieve greater operational efficiencies
and facilitate the realization of growth targets. As a first phase, the areas of Finance; Human
Resources and Administration; and Procurement and Inventory Control are being targeted.

PIA now invites firms with experience of implementing ERP solutions in large public sector
organizations and/or in the Airlines industry to bid for the following:

1. Provision of licenses for an ERP Package and Add-ons
2. Supply and Installation of Appropriate Hardware and Review of Infrastructure
Environment
3. ERP Implementation, Training and Rollout
4. Post Implementation Warranty and Support

2. Request for Proposal

A detailed Request for Proposal document is attached setting out the following:
Section A - Project Detail
Section B - Instructions To Contractors
Section C - PIA’s IT Environment
Section D - Product Requirements (ERP Package & Add-ons)
Section E - Product Requirements (Others)
Section F - Services Requirements
Section G - Hardware Requirements
Section H - Requirements Compliance Matrix
Section I - Completion and Compliance Checklist
Section J - Criteria for Technical and Commercial Evaluation

3. Bidding Process

Being a public sector corporation PIA complies with the Public Procurement Rules 2004 and the
guidelines of the Public Procurement Regulatory Authority. The process being followed for
selecting a vendor is Single-stage Two-envelope bidding, which requires technical and
commercial proposals to be submitted in two separate sealed envelopes. Bidders are advised to
carefully review, in particular, Instructions (Subsection B1) of Instructions to Contractors
(Section B) and ensure that their bids comply with all stated conditions.
4. Significant Dates From RFP Issuance to Contract Signing

RFP Issuance 15Nov 2011
Submission of Queries 22 Nov 2011
Pre-bid Meeting 28 Nov 2011
Written Responses to Queries 01 Dec 2011
21 Dec 2011 till
Submission of Proposals
1030 Hrs (PST)
21 Dec 2011
Opening of Technical Bids
@ 1100 Hrs (PST)
Publication of Technical Evaluation Report on PPRA &
28 Dec 2011
PIA’s websites
04 Jan 2012
Opening of Commercial Bids
@ 1100 Hrs (PST)
Publication of Technical and Commercial Evaluation
06 Jan 2012
Results on PPRA & PIA’s websites
Submission of Draft Contract 10 Jan 2012
Finalization of Contract 13 Jan 2012
Contract Signing with Successful Bidder 16 Jan 2012

5. Payment for RFP Collection

The bidder may download the RFP document from PIA’s website www.piac.com.pk or
www.ppra.org.pk ,the bidders are required to submit a pay order / demand draft of Rs. 10,000 (or
its US$ equivalent) drawn on Pakistan International Airlines along with the Technical Proposal
otherwise their proposals will not be considered.

Contract Timelines and Payment Terms

This is a high priority project for PIA which is being monitored directly by the Board of Directors.
Accordingly, an ambitious time schedule has been set targeting project completion within 9
months of contract signing. This period is inclusive of two months for post go-live support.
While recognizing that each ERP vendor will have their own methodology PIA has developed the
following schedule as a baseline against which the schedules proposed by each bidder will be
measured, significant weightage being given to adhering as closely to the baseline dates as
possible (albeit following the vendor’s own methodology). The schedule also indicates the
payment terms which PIA intends to follow, this being linked to achievements of specific project
milestones:
Associated ERP Implementation
ERP Licenses Hardware
Project Services
Major Project Milestones
Deliverables 1 Target Payment Target Payment Target Payment
Date % 2 Date % 2 Date % 2
Signing of Contract (against bank
1, 2, 3 16 Jan 12 10 16 Jan 12 10 16 Jan 12 10
guarantee)
Installation of Interim Servers 6 23 Jan 12 -
Delivery and Installation of SW (ERP
7 23 Jan 12 80
Package and Add-ons
Hardware Delivery (Production and DR
8 16 May 12 40
Sites)
Issuance of Certificate Upon Successful
9 16 Jun 12 40
HW Installation
Business Requirements Gathering and
10, 11, 12 31 Mar 12 15
Analysis
Build and Conduct UAT 13, 16, 17, 18, 19 30 Jun 12 15
End-User Training and Readiness 14, 15, 20, 21, 26 31 Jul 12 20
Project Go-Live 22, 23, 24 31 Aug 12 20
Completion of Post Go-live Support 25 31Oct 12 10 31Oct 12 10 31Oct 12 20
Recurrent Costs Bidder to Specify Bidder to Specify Bidder to Specify

Notes:

1. Successful completion of the project deliverables listed in Section 6 would mark the achievement of the project milestones

2. Although the payment schedule for each of the project components, that is, ERP Licenses, Hardware and ERP Implementation Services is
separately mentioned, there is a high degree of interdependencies among them. If the Contractor is unable to achieve the target ERP
Implementation deadlines this would not only impact the payment schedule for that particular component of the Contract but for others (ERP
Licenses, Hardware) as well. To elaborate the point, timely delivery and installation of the required hardware, but without the ERP
Implementation deadlines being achieved would require PIA to withhold scheduled payments against hardware as well.
6. Suggested Project Deliverables

The successful bidder will be required to provide deliverables during the course of this
project, some of which are as follows:

1. Draft Contract
2. Final Contract
3. Project Charter Document including Detailed Project Plan
4. Fortnightly Progress Report
5. Status of Project Issues List. This should be updated weekly during the project
duration.
6. Interim Servers, Operating Servers and Related Tools
7. ERP Software (Media) Installation
8. Installation of Hardware at Production and Disaster Recovery Sites
9. Certificate upon Successful Installation of Hardware
10. Requirements Specifications Document
11. Gap Analysis Document
12. Templates for Data Collection
13. Solutions Design Document
14. End-User Training Manuals and Exercise Guides based on the Configured
Solution
15. Training Plan for ERP Overview, Configured ERP Application and for End-
Users. The end-users training plan should be role-based
16. UAT Plan
17. Scenarios-based Test Scripts for User Acceptance Testing
18. Development/Provision of Standard and Customized Reports
19. Roles and Responsibility Matrix
20. Master Implementation / Rollout Plan
21. IT Infrastructure Readiness Report and Certification
22. Fully Configured ERP solution
23. Go-Live Certificate
24. Detailed Plan for Post-implementation Support
25. Project Completion Report and Certificate
26. Application Users or Operations Manuals

This list may not necessarily be comprehensive or exhaustive. Hence, bidders are free to
suggest additional deliverables, if necessary.

7. Pre-bid Meeting

A pre-bid meeting will be scheduled at 10 a.m. on 25 November 2011 at PIA to respond
to queries of interested bidders. By 19 November 2011, all queries and nomination to
attend the meeting should be sent (preferably, by email) to:

General Manager Procurement
Procurement and Logistics Department
Pakistan International Airlines
PIA Head Office, JIAP,
Karachi
Email: [email protected]

By 29 November 2011, PIA will provide to participating bidders written responses to all
queries.
8. Other Instructions

1. For any further query, bidders may contact GM Procurement at
[email protected]
2. Bids must be delivered to the aforementioned address. All bids must be
accompanied by a bid bond (included in the Commercial Proposal envelope) for
5 percent of the total bid price (in shape of Pay Order / Bank Draft / Bank
Guarantee). Bank Guarantee must be valid for 90 days from the date of
submission of bid. Bid Bonds will be returned within 30 days of the award of the
contract under this RFP to the successful bidder
3. Successful bidder shall be required to furnish a Performance Guarantee which
shall be 10% of the contract amount
4. Successful bidder shall be required to sign the Integrity Pact (format attached in
RFP document)
5. Late bids will be rejected. Bids will be opened in the presence of the
representatives of bidders who choose to attend.
6. Bid must be valid for at least 90 days (extendable) from the date of submission.
Requirement Compliance Matrix

Vendor Score

Use the following scoring scheme for responses to all but SERVICE and HARDWARE REQUIREMENTS

Vendor
Score Response Description Remarks
4 Standard feature (S) Is available as a standard feature Module / standard feature of the proposed solution
Is not a standard feqture of the proposed solution, but an acceptable workaround
ix possible without any customization to the ERP and without incurring additional
3 Workaround (W) Is available as a work-around and without customization cost. Description of Add-on / Utility and the time required to configure / develop /
implement it. In such cases Contractor has to ensure that appropriate costs
have been incorporated in the Commercial Proposal
Is not a feature of the standard solution, but is possible through an application
Enhancement through add-on The required functionality Is available through application
2 add-on or a third-party solution. In such cases Contractor has to ensure that
or third-party solution (E) add-on or third-party solution
appropriate costs have been incorporated in the Commercial Proposal
The requirement cannot be fulfilled through a feature of the standard solution and
The feature/functionality can be made available through any third-party application, but can be catered by developing a custom-built
1 Customization (C)
customization program for PIA. In such cases Contractor has to ensure that appropriate costs
have been incorporated in the Commercial Proposal
Cannot be catered as standard feature, workaround,
0 Not available (N) The requirement cannot be catered in any way.
enhancement, customization

Use the fol lowing scoring schem e for responses to SERVICE and HARD WARE REQUIREMENTS

Vendor
Score Response Remarks

1 Y = Yes Details of how the hardware requirements will be fulfilled

0 N = No / Cannot be provided Nil
Global Requirement - General

GLOBAL REQUIREMENTS – GENERAL
Response
Sr. No. Requirement (S, W, E, C, N) Remarks
Common Characteristics
1
Common characteristics are shared by all areas of the
ERP Solution
1.1
Integration
2
Software supports modern ―best business practices‖, with
data located in one integrated system shared across all
organizational units
2.1
It will also be integrated with future modules using the
same development language / platform
2.2
Configuration
3
Software will require minimum software modification to
meet its business requirements. It will allow for easy
configuration to meet those requirements without changing
3.1 software code or requiring Add-ons
Technology Interfaces
4
Software has standard application programming interfaces,
tools and methodologies that allow future releases to
accommodate interfaces without re-programming
4.1
A standard approach to interfaces is available to avoid
multiple, unique approaches for different systems
4.2
The Contractor has ensured, at its cost, availability of not
only its own APIs but also from other parties to enable
integration with other applications that it has proposed
along with the ERP as well as existing applications that will
continue to run at PIA and will require integration with the
4.3 proposed ERP
Contractor has ensured to provide XML-based APIs
wherever these are available
4.4
Access Control
5
The system supports multiple levels of security while
providing single sign-on facility to the users
5.1
Individual fields will be protected from unauthorized access
5.2
Access to certain functions and data will be protected until
they are approved by PIA‘s concerned policy makers
5.3
Application security will be integrated with database
security. Data files / tables will only be accessed through
the ERP; direct access through different query languages
5.4 will not be possible
Templates or group functions will be provided to facilitate
maintenance
5.5
Changes in assignment (employee transfers) or
termination / retirement will automatically trigger a review
of the employee‘s security privileges
5.6
Comprehensive logs of transactions and security incidents
will be maintained for auditing purposes. System will be
capable to maintain audit trails and logs
5.7
System will provide authorization, authentication, integrity
and non-repudiation facilities for critical transactions
5.8
Password length and acceptable character combination as
per industry standards are supported
5.9
System will allow setting up of password change frequency
and the number of previous passwords that could not be
repeated
5.10
System will force users to change their passwords after
pre-defined intervals
5.11
System will allow secure remote login and will support
digital signature and time stamp, etc.
5.12
User Interface
6
The system will have a common look and feel across all
applications
6.1
Screen labeling will be available in English and Urdu
6.2
Online help will be available for all applications and will
allow for customization
6.3
The system will have fast data entry screens for bulk data
entry
6.4
The system will be accessible using standard personal
computer through browser
6.5
System will allow opening multiple sessions
6.6
System will allow for switching between different programs
without first having to exit from the system.
6.7
System will allow defining navigational menus that can be
created by end-users according to their job requirements
6.8
Business rules will be incorporated into the system such
that the rules are applied at the time information is entered
into the system
6.9
The system will have validation routines / parameters to
identify errors, inconsistencies or additional requirements
at the time data is entered
6.10
Reporting / Inquiry
7
The system will include comprehensive inquiry / reporting
tools that allow for easy access to authorized data
7.1
―Drill down‖ capability to examine details will be available
7.2
It will also be possible to create reports that reflect status
as of a specified point in time
7.3
Standard reports will be included to serve as models for
customized reporting and to provide for basic functional
reports
7.4
Report wizards or similar techniques will be available to
guide users through report creation
7.5