Tender Reference No: HY/PUR/CMM/SAP SERVICE/KP/11 .
Annexure-I
Technical Scope, Techno-Commercial Terms and Conditions for engaging SAP Technical Consultant for Implementation of SAP Services to PE&SD Division of BHEL in existing SAP client of BHEL Hyderabad
Terms Used:
Bidder/Implementer/Vendor – Bidder participating in the tender as per the qualification criteria
RFP - Request for Proposal.
A. SCOPE / Bidder’s Compliance Yes / No / Bidder’s Remarks1. / 1. Scope : To provide SAP Consulting Services for creation of new company code for BHEL, PE&SD, Hyderabad within the existing instance / client in SAP ECC 6.0.
The scope of this project covers
· Building a new company code in a functioning SAP client, by copying the settings of existing company code and modifying it to suit the slightly different functional requirements of new company code.
· Unit, Integration, Regression & Stress Testing.
· Data Migration from existing company code to new company code.
· Technical Upgrade of existing SAP client from ECC6.0 to the latest SAP Enhancement Package.
· Go-live of new company code.
· Post Go-live support & Training for all modules for at least one month.
2. ERP Modules: The following ERP modules will be covered as part of this project.
· Finance & Controlling
· Project Systems
· Material Management
· Sales & Distribution
· Production Planning
· Quality Management
· Statutory Requirements (Excise, Sale Tax, Customs Duties, etc)
· ABAP/BI
3. Details of Scope:
Functional Scope: The details of SAP ECC6.0 functional modules to be implemented at BHEL PE&SD are as given below. Exact details for the following will be finalized later during blueprint stage.
SAP FI &CO Module :
· General Ledger : G/L Accounts, Documents, Periodic Processing, Reporting
· Accounts Payable: Indigenous / Foreign Vendors, Subcontractors and other Payments
· Accounts Receivable: Indigenous / Foreign Customers, Subcontractors and other Receivables
· Cash / Funds Management: Banks and Cash Management, Credit Management
· Asset Management: Asset Procurement, Payment, Depreciation
· Tax and Incentive Management: Taxes relating to Excise Duty, Service tax, Sales tax, VAT/CenVAT, Income Tax, Tax Deduction at Source, All Incentives like Export Contracts / Deemed Exports, Imports, etc
· Project Costing: Cost Monitoring and Result Analysis (AS7 Turnover recognition).
· Periodical process for : Closing of Accounts / Periods - Monthly / Quarterly / Half Yearly / Yearly
· Cost Element Accounting:
· Cost Centre Accounting:
· Product Cost Controlling: Updation of rates , Periodical Process etc
· BI Reports for Debtors reports, Cost reports etc.
SAP PS Module :
· Make to order
· Project Estimation ( pre-order)
· Applicable Product Group Main Assembly (PGMA) list, work plan.
· Project Planning
· Project Scheduling
· Project Monitoring
· Project Accounting, result analysis
SAP MM Module :
· Material and Vendor Master
· Purchase Requisitions
· Purchase Orders
· Goods Receipts
· Invoice Verification
· Accounts Payable
· Inventory Management
· Vendor Evaluation and rating
· Sub Contract management
· Statutory Requirements (Excise, Sale Tax, Customs Duties, etc)
SAP SD Module :
· Customer Master, Transporter master
· Inquiry Processing
· Quotation Processing
· Contract / Sales Order Processing
· Scheduling Agreement, Rebates, Returns, Deals, Promotions Processing.
· Billing Schedule
· Linking of BOM to major billable items and assigning billing values.
· Dispatch Clearance and Billing clearance
· Delivery and Shipment
· Management of Road Permits
· Excise Billing
· Customer Billing (commercial Invoices, PVC, ERV, ED & ST, short Billing, Credit notes, Advances )
· Applicability of statutory regulations like Customs / Excise, Sales tax etc and Generation of documents / reports for the same.
· Credit Management
· Statutory Requirements (Excise, Sale Tax, Customs Duties, etc)
SAP PP Module :
· Bill of Materials (MBOM , WBOM)
· Material Master Creation.
· Project Piping Management System (PPMS)
· Routing.
· Work Centers.
· Forecasting.
· Sales & Order Planning.
· Material Requirement Planning (MRP).
· BOM STATUS (Material Addition to project structure).
· Contract Engineering Co-ordination.
· Document Management System (DMS).
· Product Specification and Drawing Management with version control .
· Integration with EDAS ( Engineering Digital Archival System ).
· Completion Schedules from BOM.
· Customer Documentation .
· Project Documentation.
· Design interface Documentation.
· Change Management.
· Drawing number/Product specification number generation.
SAP QM Module :
· Quality Planning
· Inspection
· Quality Control
· Certificates & Notifications
ABAP/BI Developments : ABAP/BI Reports and Developments that are identified for addressing the user requirements are In Scope.
Data Migration : Legacy data conversion management for all relevant transaction and master data involved.
DMS :Migration of existing DMS (Document Management System)
Exclusions from Scope:
§ Integration with CAD / CAM, Engineering drawings and other specialized products§ Implementation or Integration of PDM (Product Data Management)
§ Implementation of my SAP components like CRM, APO.
· Local Area Network : The rollout of the LAN is out of Scope
· Wide Area Network : The rollout of the WAN is out of Scope
· Licenses / Hardware : It is intended to use existing licenses and hardware. Therefore, new licenses and hardware procurement is out of scope for this project.
2. /
Note:
1. The project language is English and all project documentation will be in English.2. The Bidders are expected to study the existing SAP client configuration before bidding.
3. The project Implementation methodology will be based on SOLMAN supplemented by tools, accelerators, and learning’s from previous implementations, projects of similar nature.
4. The project implementation schedule is 3 months from the date of Letter of Intent to vendor.
5. The signed off Business Blue print will form the basis for the SAP solution. The parties authorized to sign off the business blue print would include but not limited to the BHEL Business Process Owner & Solution Architect; who would form the over-arching change board. Sign Off parties would be determined during the Project Preparation phase.
6. BHEL would provide detailed organizational structure during the project preparation phase.
7. Network connectivity: It is intended to use existing network connectivity.
8. ABAP/BI Developments : The vendor will have to identify and modify the existing/New ABAP/BI developments to suit the new design / user requirements.
9. BHEL functional / domain experts will extend necessary support.
3. /
Implementation Strategy:
The total project implementation shall be completed in all respects as per scope in a time period of Three months from LOI.Program Phases:
The major milestones and timelines of the Project are:
· Project preparation
· Business blueprint
· Realization
· Final preparation
· Documentation
· Go live
· Post Go-Live Support & Training
B. Bidder / Implementer Qualification Criteria:(Provide documentary evidence wherever required in support of Bidder's response) / Bidder’s Compliance Yes / No / Bidder’s Remarks
4. / The Bidder should be an Organization registered under the Companies Act 1956 and should have registered office in India.
(Registration certificate to be enclosed)
5. / The Bidder should be an organization of repute in operation for the last 5 years as on 31-03-2011 in India with its core operation being IT consulting services. (Registration certificate to be enclosed)
6. / The bidder must have a minimum turnover of Rs.500 crores for all the last 3 financial years put together from IT consulting services as revealed by audited annual account. (Annual Audited reports for 3 years 2008-09, 2009-2010, 2010-2011 to be attached)
7. / The bidder should have a well established presence in India with an installed base to implement and support the SAP through-out the life time, including the ability to provide timely response and service to BHEL. (Declaration letter from the company signed by authorized signatory is to be attached)
8. / The bidder should be SAP Global Services partner with experience of having executed at least three SAP assignments with customers of this nature. (SAP Global Services Partnership Certificate, Copies of Project Completion certificate from the customers are to be attached)
9. / The bidder must have at least 500 SAP consultants on its rolls as on 31st March 2011 in India. (Declaration letter from the company signed by authorized signatory is to be attached)
10. / The bidder should be CMMi level 5 and ISO 9001:2008 certified organization. The certificate should be valid on the date of submission. (Copy of CMMi level 5 certificate to be attached.)
C. General Criteria / Bidder’s Compliance Yes / No / Bidder’s Remarks
11. / The vendor’s proposal is central to the evaluation and selection process. Therefore, it is important that the vendor carefully prepares the proposal and responds. The quality of the response will be viewed as an indicator of vendor’s business capability.
12. / A single prime vendor must respond to the RFP and take responsibility for the entire project. No subcontracting is allowed.
13. / A duly authorized corporate official legally capable of binding the vendor must sign the proposal. (Power of attorney/board resolution to the signatory should be attached.)
14. / False and Misleading statements: If any information provided by the respondent is found to be inaccurate at any stage of the selection process, BHEL may, at its discretion, reject the offer of the respondent and no correspondence will be entertained in this regard. Submission of wrong and/or false information may also disqualify the POTENTIAL IMPLEMENTER from any future work from BHEL.
15. / Clarifications on this RFP: BHEL reserves the right to obtain clarification on any point in an implementer’s response to this RFP or to obtain additional information necessary to properly evaluate. Failure of an implementer to respond to such a request for additional information or clarification within the time specified may result in rejection of implementer’s proposal.
16. / Minimum Level of resources:
Implementer is expected to deploy senior resources who meet the minimum level as indicated below.
Resource / Total Exp Level (Years) / SAP Experience (Years) / Domain Experience (Years) / Min. No. of resource
Project Manager / 15 / 8 / 7 / 1
Solution Architect - SAP Integration / 12 / 8 / 7 / 1
Data Migration & Cutover Manager / 12 / 6 / 6 / 1
Functional Consultants (Min. one per module) / 8 / 6 / 4 / 6
ABAP/BI Developer / 8 / 6 / 3 / 2
Basis / 8 / 6 / 4 / 1
17. / Implementer has to enter into a non-disclosure agreement with the Company and also a contract for implementing the application.
18. / The implementer should also indicate the size of the proposed implementation team for BHEL and also a brief resume of the consultants that they plan to depute for this assignment. This should be submitted along with the proposal.
19. / Expenses for responses: Potential Implementer is solely responsible for their expenses, if any, in preparing a response to this Request for Proposal. This would include any costs incurred during initial presentation or subsequent negotiations.
D. Techno-Commercial Terms and Conditions / Bidder’s Compliance Yes / No / Bidder’s Remarks
20. / The offer should be valid for 180 days from date of opening of Price bid.
21. / Implementation shall be completed in 3 Months from date of LOI (Letter Of Intent). Penalty will be levied in case of delays @ ½ % per week of delay or part there of, of total contract value, subject to a maximum of 10%.
In case of non acceptance of the above, offer will be loaded proportionately, only for the purpose of evaluation.
22. / Bidder has to give acceptance to finalization of tender through Reverse Auction, other wise offer will not be considered. (Enclose Acceptance letter)
23. / The Bidder shall submit the proposed plan of execution and the methodology to execute the plan at the time of bid submission. (Document to be submitted.)
E. Termination of Order and Consequences / Bidder’s Compliance Yes / No / Bidder’s Remarks
24. / BHEL reserves the right to terminate the order/contract, upon situations arising due to non-compliance of contract Terms & Conditions by the bidder, at the risk and cost of the Bidder.
25. / In case of the contract termination, Bidder shall remove the resource from BHEL premises at his own risk and cost after due permission from BHEL within a month of serving notice in this respect.
26. / ACCEPTANCE OF ORDER
Bidder shall submit Letter of acceptance for the LOI within two days and a detailed contract will be signed subsequently.
27. / PATENTS & TRADEMARKS
Bidder shall at all times indemnify BHEL against all claims which may be made in respect of the Systems/goods/Software supplied, for infringement of any right protected by patent, registration of designs or trademarks and legality of usage of Software. In the event of any such claims being made against BHEL, BHEL will inform the Bidder who shall at his own cost either settle any such dispute or conduct any litigation that may arise there from.
28. / Risk Purchase :
BHEL reserves the right to exercise ‘Risk Purchase’ option for Implementation of the project, from any other source at the cost of the Bidder in case there is delay of more than 3 months from the date of LOI.
29. / Indemnity :
Bidder shall fully indemnify and keep indemnified BHEL against all claims which may be made in respect of the use of System/Software/Item(s)/services supplied/rendered by the Bidder, for infringement of any rights protected by patent, registration of designs or trademarks and legality of the Software.
All such claims in this regard will be settled as per Indian Laws.
In the event of any such claims being made against the BHEL, BHEL will inform in writing to the Bidder who shall at his own risk and cost either settle any such dispute or conduct any litigation that may arise there from.
30. / Insurance:
Comprehensive insurance cover for all consultants deployed during the currency of the contract, including any extended periods for implementation as well as post go-live support that is mutually agreed in writing, shall be taken by the Bidder at his own cost.
31. / Confidentiality:
Bidder shall, at all times, undertake to maintain complete confidentiality of all data, information, software, drawings & documents, etc. belonging to the BHEL and also of the Systems, procedures, reports, input documents, manuals, results and any other company documents discussed and/or finalized during the course of execution of the order/contract
32. / Arbitration :
In all cases of disputes emanating from and in references to this agreement the matter shall be referred to the arbitration of the sole arbitration of the Executive Director/ GM of BHEL, Hyderabad or any other person (including an employee of BHEL, even though he had to deal with the matter relating to this agreement in any manner) nominated by the said Executive Director /GM to act as sole arbitrator. The arbitration shall be under ‘THE ARBITRATION AND CONCILIATION ACT OF 1996’ and the rules there under. The arbitrator may from time to times with the consent of the parties enlarge the time for making and publishing the award
33. / Withdrawal from the Contract :
In case the Bidder withdraws the offer submitted by him/her after it is accepted by BHEL and fails to supply the goods/Services as per the terms and conditions of the contract, or at any time repudiated the contract wholly or in part, BHEL shall be at liberty to cancel the contract and to recover from the bidder the extra cost and the other losses incidental to the breach of contract by the bidder in addition to losing EMD and Security Deposit already received by BHEL
34. / In addition to the terms and Conditions mentioned in this document, General Terms and Conditions in Annexure-II are to be accepted.
35. / BHEL reserves the right to finalize the tender through Reverse Auction, as per the Terms and Conditions of reverse auction is given in Annexure-IV.
Annexure-II
General Terms and Conditions
1. BIDDER TO INFORM HIMSELF FULLY:
1.1. The bidder shall closely peruse all the clauses, specifications and requirements and drawings etc., specified in the tender documents, and the offer made should be in accordance with these documents. If bidder requires any clarification and additional information on any of the tender documents/conditions, the bidder shall contact the BHEL Official inviting bids at the earliest.