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Minutes of Pre-Bid Meeting held on 23rd September, 2015 at 11:30 hrs regarding Tender Id No. 2015_DIPP_46397_1 Dated: 15.09.2015 for Appointment of Consultancy Agency For Start Ups for DIPP.

October 6, 2015

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Minutes of Pre-Bid Meeting held on 23rd September, 2015 at 11:30 hrs regarding Tender Id No. 2015_DIPP_46397_1 Dated: 15.09.2015 for Appointment of Consultancy Agency For Start Ups for DIPP.

(1) The Following were present: 

A. The following officials of Department of Industrial Policy & Promotion (DIPP) & Consulting Agencies were present in the meeting:

1. Shri Shailendra Singh, JS, DIPP

2. Shri Shihab Ansari Azhar, Program Manager, World Bank

3. Shri Frank Noble A, Assistant Secretary, DIPP

4. Smt. Shama Praveen, Assistant Secretary, DIPP

5. Shri Chandrashekhar Nayaka, Assistant Secretary, DIPP

6. Shri Suraj Kumar, Assistant Secretary, DIPP

7. Shri Rajesh Pawar, Assistant Director, DIPP

8. Smt. Shalini Gupta, Assistant Director, DIPP

B. Representatives of following consultancy Agency were present in the meeting:

1. KPMG

2. Ernst & Yoong

3. ICRA Management Consulting Services Ltd.

4. WIPRO Ltd.

5. PWC

6. IL&FS Clusters

7. DELOITTE

8. Darashaw & Co.

9. Grant Thornton

10. Mckinsey & Company

11. A.T.Kearney

C. Minutes of the meeting have been attached. ( Annexure -1)

Minutes of Pre-Bid Meeting held on 23rd September, 2015 at 11:30 hrs Dated: 15.09.2015 for Appointment of Consultancy Agency For Start Ups for DIPP.

Sl.No.

Para

Clause

Query

Reply

1

2.6.5

Experience of executing Programme Management Unit (PMU)/ Programme Management Office (PMO) projects with Central/ State Govt. in India in the last 3 years of value more than Rs. one crores (5 marks for each project)

Experience of executing Programme Management Unit (PMU)/ Programme Management Office (PMO) projects with Undertakings fully owned by State Government (i.e. State Public Sector Enterprises) should also be allowed

Experience of executing Programme Management Unit(PMU)/Programme Management Office(PMO) projects with Undertakings fully owned by State Government will also be allowed.

2

2.6.5

Qualifications, past performance/experience, skills and knowledge of Project Manager Essential Education Qualification (Graduate and MBA/PGDBA equivalent)·         Minimum Experience: 10 years Years of work experience: (10-12 years : 3 marks; more than 12 years : 5 marks) Experience as a project manager: 5 marks

Request to kindly allow the Chartered Accountancy qualification also for the position of Project Manager

The required essential educational qualification of the Project Manager in this RFP is Graduate and MBA/PGDBA equivalent.

3

2.6.5

Qualifications, past performance/ experience, skills and knowledge of other team members. Minimum Education Qualification (A Graduate and MBA/PGDBA equivalent/CA/CWA/CS/LLB)       Minimum Experience: 5Years in related field (5-10 years: 2 marks for each member more than 10 years:3 marks for each member)   ·         Maximum Marks-15

How many other Team Members are to be proposed?

The number of Team members to be deployed is upto the Consulting firm to decide.

4

2.6.5

 

No mention of number of dedicated team member in the RfP document, who will be deployed on full time basis.

Deployment period of the team members shall be full time.

5

3.2.5.1

Prohibition of Conflicting Activities: Neither the Consulting Agency nor their Sub consultants nor the Personnel shall engage, either directly or indirectly, in any of the following activities: a) during the term of this Work order, any business or professional activities which would conflict with the activities assigned to them under this Work order; and b) after the termination of this Contact, such other activities as may be specified in the SC

Need to be clarified in detail about the business or professional activities which would conflict with the activities assigned under this Work order

Prohibition with regards to conflicting activities refers to any activity which creates a conflict of interest for the consulting agency and affects its function of giving appropriate advice in good faith. No specific list of such activities can be given.

6

2.6.4

Consulting Agency Bidder should be a registered firm/company/partnership/consortium and should be in operations in India for a minimum of 3 years

Please clarify the experience of consortium partner shall be considered for both eligibility and technical evaluation, in case the interested consultant chose to submit the proposal in consortium

The experience on the number of projects will be calculated as per consortium. For all other criteria’s, the experience of lead partner will be taken into account.

7

2.6.5

Experience of being a knowledge partner on Make in India initiative or of executing projects to improve ease of doing business or investment promotion in India (Central Government and State Government 5 for each project) 

We understand that Make in India and Ease of Doing Business are holistic concepts and these phrases are relatively recent while these objectives have been implemented / pursued at State and Central levels in different forms and under different connotations. It would be pertinent to provide an indicative list of specific initiatives which would qualify for marks under this broad criterion. To encourage greater participation by consultancy firms in the tender, we request you to kindly include initiatives in economic development related to:

· Policy formulation

· Need assessment

· Financial linkages for MSMEs  

· Non – Financial Services for MSMEs

· Capacity Building

· Promoting schemes related to development of sectors covered under “Make in India”

· Vocational Training 

· Entrepreneurship development

· Use of IT to simplify Government processes 

· Organization of buyer seller meets for attracting investments

· Availability of global offices for investment promotion

· Market Development Programs

· Inclusive Growth

No indicative list can be provided while ' Make in India ' initiative is a recent one, other areas have been worked on in Central as well as in State Governments. Concepts of Ease of Doing Business and Investment promotion are well established and need no further clarification. Consulting agency has to indicate under which category the subject matter falls

8

2.6.5

Team deployment

We believe that the team of the shortlisted consultant shall be working from the consultant’s home office in NCR. It may be clarified if the consultant needs to depute any of the personnel at the department or on site on a full time basis.

· Kindly provide an indicative assessment of man months for each of the personnel proposed in the project over the period of 3 years for the purpose of having uniformity in the financial bids of the bidders

While decision of deputing an on-site team is with the applicant and they will be awarded marks in technical evaluation accordingly. A team of at least 2 members onsite is expected.

9

Form 4 B

Summary of Costs

Since, a dedicated team shall be working with DIPP on this engagement; It is not clear how the cost for developing recommendations, cost for handholding activities, cost for monitoring activities will be worked out. Kindly Clarify

Cost for developing recommendations, handholding activities and monitoring activities will have to be worked out by the bidders

10

3.4

Payments to consulting agency

· Provision of advance may please be considered · Since the deployment of manpower for discharge of works shall be continuous in nature, we request you to kindly consider monthly payment

Payment schedule will be made as following:

i. Developing recommendations – After the submission of recommendation. Cost of developing recommendation if it exceeds 1/3rd of total cost for the year, the amount in excess shall be paid in equal monthly installments over the year.

 ii.  Handholding activities – Quaterly payment based on the deliverables

iii. Monitoring activities – Quaterly payment based on the deliverables No Advance shall be made in the case

11

 

Earnest Money Deposit (EMD) Amount

The amount of EMD is very significant. It is requested to reduce it to INR 5 lakhs which shall also encourage greater participation

There will be no change.

12

Form 3C

Turn over

Kindly clarify, if the turnover of year 201415 shall be considered

As per Form 3C, the details have been requested for the Financial years 2011-12,2012-13,2013-14.

13

3.7

Liquidated Damages

The clause and its implementation mechanism is unclear, kindly clarify

Deliverable timeline shall be as follows

i. Developing recommendation: Within 2 months of effective date.

ii. Handholding activities: Based on the submission of the deliverables which will be specified by DIPP

iii.  Monitoring activities: Based on the submission of the deliverables which will be specified by DIPP

14

3.7.4a

 

The penalty for delay in adherence to implementation schedule shall be considered only in cases of delay attributable to consultant only, please confirm. Also, please indicate an upper limit to the amount of penalty

All the details are mentioned in the clause 3.7. There is no change to it.

15

 

 

The opening of pre-qualification proposals is mentioned on 08th Sept 2015, which seems like a typo, and should be October, please clarify.

Corrigendum already issued in this regard

16

 

 

What is the scheduled time for the Pre bid meeting to be held on 25th Sept 2015.

23rd September 2015

17

2.4.7(i)

All the costs associated with the Assignment shall be included in the Financial Proposal. These shall normally cover remuneration for all the personnel (Expatriate and Resident, in the field, office, etc.), accommodation, air fare, transportation, equipment, printing of documents, secondary and primary data collection, etc…

It is requested to clarify the travel requirements and nature (domestic and/or overseas) with frequency of travel for this project.Also, Since the duration of the project is 3 years, it may not be possible to ascertain the future travel requirement. Hence, it is requested that for any approved travel all associated travel charges to be reimbursed on the basis of the actuals.

Consulting agency is expected to bring International know-how with them on the subject. Travel (National/International) and Stay will be taken care by the Consulting agency according to their judgment for delivery of project Where specific tour is to be undertaken on the request of DIPP, cost of such tours  shall be borne by DIPP

18

2.6.4

Consulting Agency Bidder should have average turnover of ₹ 25 crore per year in the last three years from consultancy services.

It is understood that this project is of national significance and is envisaged to deliver long term impact with regards the “Start-up” ecosystem. Accordingly, we believe that the minimum turnover requirement should be increased to at least 75 crores per year in the last 3 years.

There will be no change in this requirement.

19

2.6.5

Team members: Minimum Experience: 5Years in related field

Kindly modify this (in line with the scoring rationale for project manager) to (5-7 years: 2 marks for each member more than 7 years:3 marks for each member)

There will be no change in this requirement.

(5-10 years: 2 marks for each member

more than 10 years:3 marks for each member)

· Maximum Marks-15

20

5

Designing and set up a system to monitor progress on the above initiatives in achievement of deliverables and targets set for various agencies

Kindly detail the scope for this line item. In case an IT system needs to be need to be developed, kindly clarify who would be responsible for hosting and maintaining the same.

The system refers to both IT and non-IT initiatives including development of an IT system. It will be integrated with the DIPP’s existing website

21

5

Identify global best practices and benchmarks that facilitate growth of start-ups;

Please clarify if any primary study visits would be required as part of this.

As in 17 above.

22

Form 3A, Point 9/Form 3G, Point 8

We certify that in regard to matters other than security and integrity of the country, we or any of our affiliates have not been convicted by a court of law or indicted or adverse orders passed by a regulatory authority which would cast a doubt on our ability to undertake the Project or which relates to a grave offence that outrages the moral sense of the community.

Kindly confirm that this requirement applies to affiliates in India only.

Requirement applies to affiliates in India only

23

Form 3A, Point 10/Form 3G, Point 9

We further certify that in regard to matters relating to security and integrity of the country, we have not been charge-sheeted by any agency of the Government or convicted by a court of law for any offence committed by us or by any of our affiliates. We further certify that neither we nor any of our consortium members have been barred by the central government, any state government, a statutory body or any public sector undertaking, as the case may be, from participating in any project or bid, and that any such bar, if any, does not subsist as on the date of this RfP.

Kindly confirm that this requirement applies to affiliates in India only

Requirement applies to affiliates in India only.

24

Form 3A, Point 11/Form 3G, Point 10

We further certify that no investigation by a regulatory authority is pending either against us or against our affiliates or against our CEO or any of our Partners/Directors/ Managers/ employees.

Please clarify whether the word “Director" in this clause refers to Board of Directors or Directors by designation.

The word “Director" in this clause refers to the Directors of Company as defined in the Companies Act, 2013.

25

Form 3A, Point 11/Form 3G, Point 10

We further certify that no investigation by a regulatory authority is pending either against us or against our affiliates or against our CEO or any of our Partners/Directors/ Managers/ employees.  

Please clarify whether the word “Partners” in this clause refers to partners of the firm or partners by designation.

The word “Partners” in this clause refers to  partners of a firm by whatever name called.

26

Form 3A, Point 11/Form 3G, Point 10

We further certify that no investigation by a regulatory authority is pending either against us or against our affiliates or against our CEO or any of our Partners/Directors/ Managers/ employees

Kindly limit the requirement to the bidding entity/CEO/Partners/Directors.

The clause shall exempt Managers/ employees where such information was not already in the knowledge of the bidding organization.

27

27

3.2.8

Liability of the Consulting Agency: Subject to additional provisions, if any, in this work order the Consulting Agency‘s liability under this Work order shall be as provided by the Applicable Law.

Kindly limit consulting agency’s liability to one time the fees to be received from DIPP under this engagement.

There will be no changes to this clause

 

2.5.2

The authorized representative's authorization should be confirmed by a written power of attorney by the competent authority accompanying the proposal

 

 

 

Clause 15 of Form 3A

A power of attorney in favour of the authorized signatory to sign and submit his proposal and documents is attached herewith

Will a board resolution authorizing the competent person to be the signing Authority suffice or is the Power of Attorney a mandatory requirement

In case of companies, board resolution authorizing the competent person to be the signing Authority will suffice

 

Form 3E

Form 3E: Format for Power of Attorney for Authorized Representative

 

 

29

3.2

Termination clause

The termination clause is provided only to the client

There will be no changes to this clause

30

3.2.7

Documents prepared by the consulting agency to be the property of the Client

All designs, reports, other documents and software submitted by the consulting agency purusant to this work order shall become and remain the property of the Client, and the consulting agency shall, not later than upon termination or expiration of this Work order, deliver all such documents and software to the client, together with a detailed inventory thereof. The consulting agency may retain a copy of such documents and softwar. Restricitions about the future use of these documents and software, if any, shall be specified in the SC.

All designs, reports , other documents and software submitted by the consulting agency purusant to this work order shall become and remain the property of the Client. In case the firm is using any existing software, it has to be brought to the notice of the client in advance.

31

31

3.2.9

Professional Liability Insurance

Consulting Agency will maintain at its expense, Professional Liability Insurance including coverage for errors and omissions caused by Consulting Agency's negligence, breach in the performance of its duties under this Work order from an Insurance Company permitted to offer such policies in India, for a period of one year beyong completion of Services commencing from the Effective date

Consulting agency can have insurance policy till the date of completion of services.

32

4.5.7.1

Performance Security

Performance security is 15% of the total cost of Financial Proposal under this assignment.

1. Can it be reduced to 10%

2. Can this be given as mobilization fees

There will be no change.

33

Miscellaneous

Background Material for Startups

 

Currently there are no materials available for Startups

34

Miscellaneous

Extension of timelines

 

There will be no extension of timelines

35

Section 6,Clause 3.4.2,Payments to the Consulting Agency

The Agency will submit pre-receipted invoices in triplicate, for necessary settlement when the payment is due on completion of each individual component as identified in Section 4 of this RFP

In section 4, only yearly cost of each component to be quoted by consultant has been mentioned. There is no clarity on the payment terms. We request DIPP to provide clarity on the payment structure

It has to be given on each completed component.

36

Section 6,  Clause 3.7.3, Liquidated damages

The amount of liquidated damages under this Work Order shall not exceed 100 percent of the total value of the contract as specified in Annexure B.

Request DIPP to make the following required changes: 

The amount of aggregate liquidated damages under this Work Order shall not exceed 100 10 percent of the total value of the contract as specified in Annexure B.

There will be no changes to this clause

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