Kathmandu University School of Management

Project Implementation, Evaluation and Monitoring

Submitted to: Course Instructor
Mr. Jayakar Vaidya





Submitted by: Laxmi Poudel (12125)
Iroj Shrestha (12130)
Shrizana Shrestha (12133)
Sandeep Sigdel (12134)



May 20, 2014



Project Report
On
TIA Customer Service Improvement
Project
1

TABLE OF CONTENTS
I. Introduction: .................................................................................................................................................................. 2
II. Procurement Plan ....................................................................................................................................................... 3
III. Gantt Chart ........................................................................................................................................................................ 6
IV. Bid Data Sheet .................................................................................................................................................................. 7
A. Bid Data Sheet for Procurement of Air Conditioning Set ........................................................... 7
B. Bid Data Sheet for Procurement of Construction Work ............................................................ 10
V. Qualification of bidders ............................................................................................................................................ 12
A. Qualification Criteria for Procurement of Air Conditioning Set .......................................... 12
B. Qualification Criteria for Procurement Construction Work .................................................. 13
VI. List of Special Conditions of Contract (SCC) for the bid documents: ............................................... 13
VII. Probable Agenda for Negotiation with the Short Listed Bidders: ................................................... 15
VIII. Opearational and Purchasing Strategy......................................................................................................... 16
A. operational strategy ......................................................................................................................................... 16
B. purchasing strategy .......................................................................................................................................... 18
IX. Process Map: ................................................................................................................................................................... 19



2

I. INTRODUCTION:
The project titled as TIA Customer Service Improvement Project is currently in phase III
and requires simultaneous completion of two projects: Improvement of Radar system and
improvement of communication at international terminal complex. In this report, the detail
analysis of issues regarding the procurement of Visual display/ air conditioner and
decorative pendent in the Improvement of Communication at Airport Complex named
project will be done.
Since TIA is only international airport in Nepal, the proper management and maintenance of
service provided within the premise of airport is very crucial to Civil Aviation Authority
(CAA), which oversees the airport issues. Currently, CAA has signed a donor package
assistance of US $ 1 million for the technical improvement of the airport with Tourism
Ministry. Through this technical improvement, CAA wants to improve its existing service for
the customer convenience and radar system. Moreover, deficit amount will be covered by
development budget of government allocated for Tourism Development. Therefore, the
project is executed by Tourism Ministry and implemented by the Civil Aviation Authority,
Babarmahal, Kathmandu.
This project broadly aims to improve communication in Airport Complex. The main
objective of this project is to improve:
technical performance of the Customer service in Airport
communication with the passengers
image of the international airport
Specifically, the objective of the project is to make:
Improvement of information dissemination by improved visual display system
Improve passenger comfort by installing the air conditioners
Improve the outlook by installing the decorative pendants
Since another project under phase III, i.e. up gradation of radar component is in progress and is
estimated to get completed by 15
th
of Poush, 2071. this project is also required to be completed
by that date so that the project delivers the output on time. The starting date of the project under
study is Jestha 15
th
2071.
3

II. PROCUREMENT PLAN
Starting date: 15 Jestha 2071
S.
N
Procurem
ent
Category
Description
of
Procurement
item/activity
Estimat
e
Procuremen
t process
starts on
Goods
should
arrive and
installation
complete
by
Type of
procurem
ent
Type of
Contract
Criteria
of
contracto
r
evaluatio
n and
items
Remark or
justification if
any.
a. Goods LCD flat
displays of
reputed brand
(10 pcs)
460,000 Jestha 16,
2071
Shrawan 17,
2071
Request
for
Quotation
(RFQ)
1
Fixed
cost
contract
Timely
delivery,
cost,
brand
Requires
installation with
accessories of
steel
b. Goods Air
conditioning
sets about
1000w, 220v,
15 A flat 12
by 30 size,
noiseless (10
9,500,00
0
Jestha 15,
2071
Kartik 15,
2071
National
Competiti
ve
Bidding
Single
Specific
contract
Cost,
brand,
noise
emission,
past
experience
, warranty,
Under NCB, 5
months is
required for
procurement and
it requires
installation with
steel
4

pcs) timeliness
c. Goods Electrical
Pendants
950,000 Asar 15,
2071
Bhadra 15,
2071
RFQ Fixed
Cost
contract
Cost,
warranty,
quality,
timely
delivery,
past
experience
The eligible
suppliers
requested to
submit the
catalogue and
suggestion
regarding this
item
d. Goods
with
design
input
Decorative
light system
for evening
9,50,000 Shrawan 17,
2071
Ashoj 10,
2071
RFQ Turnkey
contract
Cost,
superior
design,
brand,
maintenan
ce, past
experience
Supplier
responsible for
design input and
installation
e. works Covering of
ceiling by
false board,
plastering
and colouring
2,520,00
0

Shrawan 16,
2071
Mangshir
26, 2071
NCB Time and
material
contract
Past
experience
, cost,
maintenan
ce
Start only after
completion of all
above activities
and takes 40
days.
5

of ceiling
18000 sq. ft
f. Consultant External
auditor for
final audit of
the project
50,000 Mangshir 27,
2071
Poush 14,
2071
(Consulta
nt
Qualificati
on
Selection
(CQS)
Lump
sum
contract
Qualificati
on and
experience
Since, we have
less time, auditor
form roaster is
selected and
asked to prepare
the final audit. It
will take only
15-18 days to
produce report as
the level of
complexity of
this project low.
1. Here, for RFQ, two months time is allocated so that the selection, award of contract and installation of goods procured will be
finished within this time frame.



6

III. GANTT CHART
Duration Jestha Asar Shrawa
n
Bhadr
a
Ashwin Kartik Mangshir Poush
Procurement
of 32 LCD
16-Jestha 17-
Shrawa
n
64
Procurement
of air
condition
sets
15-Jestha 15-
Kartik
156
Electrical
pendants
15-Asar 15-
Bhadra
63
Decorative
light
17-
Shrawan
10-
Ashoj
55
Covering and
coloring of
ceiling
16-
Shrawan
26-
Mangs
hir
133
Appointment
of external
auditor for
final audit
27-
Mangshir
14-
Poush
16
7


IV. BID DATA SHEET
A. BID DATA SHEET FOR PROCUREMENT OF AIR CONDITIONING SET
A bid data sheet for the procurement of air conditioning set is under the national competitive
bidding is presented below:
A. Introduction
ITB 1.1 Name of the Purchaser: Civil Aviation Authority

ITB 2.1 Tender No.: CDSC/02/067-68

ITB 2.1
Name of the Project: Procurement of Air Conditioner sets about 1000w,
220 v, 15 A flat 12by 30 size, noiseless- 10 pcs at international terminal
complex through TIA customer service improvement project, Phase III
B. Bidding Document
ITB 8.1 For clarification purposes only, the Purchasers address is:
Attention: Procurement Manager (Shanti Adhikari),
Name of the Purchaser: Civil Aviation Authority.
City/Town: Kathmandu
District: Kathmandu
Country: Nepal
Telephone: + 977 015250123
Facsimile Number: +977 1 4262538
Electronic Mail Address: TIA@caa.org.np
ITB 8.1 The purchaser will respond in writing to any request for clarification
provided that such request is received no later than three (4) days prior
to the deadline date for submission of bid.
ITB 8.2 Pre-Bid meeting shall be organized.
8


Pre-Bid meeting will take place, it will be at the following date, time
and place:
Date: 2071-Asar 15
Time: 2:00 PM
Place: Civi Aviation Authority, Babarmahal, Kathmandu, Nepal
C. Preparation of Bids
ITB 11.1 The language of the Bid is: English
ITB 12.1 (h) The Bidder shall submit the following additional documents with its
Bid: Suppliers Authorization from the Suppliers of the offered goods, if
the Bidder itself is not a official/authorized supplier of offered goods or
is only the agent of the supplier.
ITB 17.6 The Bidders shall submit:
Copy of Firm Registration Certificate
Copy of Business Registration Certificate
Copy of VAT and PAN Registration Certificate,
Copy of Tax Clearance Certificate or Tax returns submission evidence
for the F/Y 2070/71.
A written declaration made by the bidder, with a statement that s/he is
not ineligible to participate in the procurement proceedings; has no
conflict of interest in the proposed procurement proceedings, and has
not been punished for a profession or business related offense.
ITB 19.2 A Suppliers Authorization letter is only required for the following
items:
(i) Server, (ii) Computer
ITB 20.1 The bid shall be valid until Bhadra 15, 2071.
9


ITB 21.1

The Bidder shall furnish a bid security, from "A" class commercial bank
with Nrs 9,50,000/= [Nrs. Nine Hundred Fifty Thousand Only], which
shall be valid until Bhadra 15, 2071
ITB 21.2 If the Bidder wishes to submit the Bid Security in the form of cash, the
cash should be deposited in Deposit Account No 17835240100024 of
Civil Aviation Authority at Nepal Bank Ltd. , New Road Branch
and submit the receipt of the deposited amount of cash along with the
bid.
D. Submission and Opening of Bids
ITB 24.1 For bid submission purposes only, the Purchasers address is : Civil
Aviation Authority, Babarmahal, Nepal
ITB 24.1 The deadline for bid submission is:
Date: Shravan 15, 2071; Time: 12.45 hrs.
ITB 24.1 If the last date of purchasing, submission and opening of Bid falls on a
government holiday then the next working day shall be considered as
the last day without any change in the time and place as fixed.
ITB 27.1 The bid opening shall take place at: : Civil Aviation Authority,
Babarmahal, Kathmandu, Nepal
Date: 15 Bhadra, 2071
Time: 13.00 hrs
Place: Civil Aviation Authority, Babarmahal, Kathmandu, Nepal
E. Evaluation and Comparison of Bids
F. Award of Contract
ITB 43.3 No application can be submitted before the Review Committee for
review against the decision made by the chief of the Public Entity for
the bid amount up to the value of Nepalese Rupees 10,000,000 (ten
million)
10


ITB 43.9 The Bidder, filing application pursuant to ITB 43.4, shall have to
furnish a cash amount or Bank guarantee equal to 0.5% of its bid price.


B. BID DATA SHEET FOR PROCUREMENT OF CONSTRUCTION WORK
Bid data sheet for the procurement of work related to covering of ceiling by false boards and
plaster of Paris and coloring of ceiling of 18000 sq. feet under the national competitive bidding is
presented below.
A. Introduction
ITB 1.1 Name of the Purchaser: Civil Aviation Authority

ITB 2.1 Tender No.: CDSC/02/067-68

ITB 2.1
Name of the Project: covering the ceiling by false boards and plaster of
Paris and coloring the ceiling at international terminal complex through
TIA customer service improvement project, Phase III
B. Bidding Document
ITB 8.1 For clarification purposes only, the Purchasers address is:
Attention: Procurement Manager (Shanti Adhikari),
Name of the Purchaser: Civil Aviation Authority.
City/Town: Kathmandu
District: Kathmandu
Country: Nepal
Telephone: + 977 015250123
Facsimile Number: +977 1 4262538
Electronic Mail Address: TIA@caa.org.np
ITB 8.1 The purchaser will respond in writing to any request for clarification
provided that such request is received no later than three (4) days prior
to the deadline date for submission of bid.
ITB 8.2 Pre-Bid meeting shall be organized.
11


Pre-Bid meeting will take place, it will be at the following date, time
and place:
Date: 2071 Shrawan 16
Time: 2:00 PM
Place: Civi Aviation Authority,Babarmahal, Kathmandu, Nepal
C. Preparation of Bids
ITB 11.1 The language of the Bid is: English
ITB 12.1 (h) The Bidder shall submit the following additional documents with its
Bid: Suppliers Authorization from the Suppliers of the offered goods, if
the Bidder itself is not a official/authorized supplier of offered goods or
is only the agent of the supplier.
ITB 17.6 the bidders shall submit:
Copy of Firm Registration Certificate
Copy of Business Registration Certificate
Copy of VAT and PAN Registration Certificate,
Copy of Tax Clearance Certificate or Tax returns submission evidence
for the F/Y 2070/71.
A written declaration made by the bidder, with a statement that s/he is
not ineligible to participate in the procurement proceedings; has no
conflict of interest in the proposed procurement proceedings, and has
not been punished for a profession or business related offense.
ITB 19.2 A Suppliers Authorization letter is only required for the following
items:
(i) Server, (ii) Computer
ITB 20.1 The bid shall be valid until Mangsir 26, 2071.
ITB 21.1

The Bidder shall furnish a bid security, from "A" class commercial bank
with Nrs 9,50,000/= [Nrs. Nine Hundred Fifty Thousand Only], which
shall be valid until Mangsir 26, 2071
ITB 21.2 If the Bidder wishes to submit the Bid Security in the form of cash, the
cash should be deposited in Deposit Account No 17835240100024 of
Civil Aviation Authority at Nepal Bank Ltd. , New Road Branch
and submit the receipt of the deposited amount of cash along with the
12


bid.
D. Submission and Opening of Bids
ITB 24.1 For bid submission purposes only, the Purchasers address is : Civil
Aviation Authority, Babarmahal, Nepal
ITB 24.1 The deadline for Mangsir 26, 2071; Time: 12.45 hrs.
ITB 24.1 If the last date of purchasing, submission and opening of Bid falls on a
government holiday then the next working day shall be considered as
the last day without any change in the time and place as fixed.
ITB 27.1 The bid opening shall take place at:: Civil Aviation Authority,
Babarmahal, Kathmandu, Nepal
Date: Mangsir 26, 2071
Time: 13.00 hrs
Place: Civil Aviation Authority, Babarmahal, Kathmandu, Nepal
E. Evaluation and Comparison of Bids
F. Award of Contract
ITB 43.3 No application can be submitted before the Review Committee for
review against the decision made by the chief of the Public Entity for
the bid amount up to the value of Nepalese Rupees 10,000,000 (ten
million)
ITB 43.9 The Bidder, filing application pursuant to ITB 43.4, shall have to
furnish a cash amount or Bank guarantee equal to 0.5% of its bid price.

V. QUALIFICATION OF BIDDERS
A. QUALIFICATION CRITERIA FOR PROCUREMENT OF AIR CONDITIONING SET
The qualification criteria for the procurement of air conditioning set through national competitive
bidding is presented below.
1. The air conditioning set must be of 1000 watt, 220 volt, 15A flat with 12 inch by 30
inches in size. The estimated cost for the air conditioning set must be within the range
of Rs. 9500000. It also must have the requirement of the installation of the
accessories of steel or high density aluminium.
13


2. The supplier must have experience of 5 years of experience in supplying of air
conditioning items and installation.
3. Air conditioners must have remote control or have other electronic capabilities like
auto-restart. It also must have an air filters.
4. The voltage capacity must be 220 volt circuits to ensure that air circuit will run safely.
B. QUALIFICATION CRITERIA FOR PROCUREMENT CONSTRUCTION WORK
Qualification criteria for covering of ceiling by false board, plastering and colouring of ceiling
under the procurement of construction work.
1. The supplier must cover the ceiling by false boards and plaster of Paris and colouring the
ceiling 18000 sq. ft at the rate of Rs. 140 per sq feet with the total cost of Rs. 2520000.
2. The Bidder should have certified staff. The details of the staff so employed should be
provided along with the bid.
3. The supplier must have 10 years of experience regarding covering of ceiling by false
board, plastering and colouring of ceiling.
4. The Bidder should be ISO 9000 series certified for the materials and technology used for
the work.
VI. LIST OF SPECIAL CONDITIONS OF CONTRACT (SCC) FOR THE
BID DOCUMENTS:
The Special Conditions of Contract (SCC) contains provisions that the General Conditions of
Contract (GCC) requires be specified for a particular contract. The SCC is a contract document
and, therefore, is part of the contract and the provisions under this prevail over those in GCC
whenever there is a conflict. So, the following could be the list of special conditions, which
needs to be incorporated during the preparation of bid documents.
1. Name of the purchaser and his country.
2. The meaning of the trade terms remains same as that prescribed by Incoterms.
3. Version edition of Incoterms.
4. Governing law of the country Nepal.
5. The formal mechanism for the resolution of disputes shall be as follows:
14


a. For contracts entered into with Foreign Suppliers:
b. In case of a dispute between the Purchaser and the supplier, the dispute shall be
settled by arbitration in accordance with the provisions of the United Nations
Commission on International Trade Law (UNCITRAL) arbitration Rules.
6. For contracts entered into with suppliers from Nepal
a. In the case of a dispute between the Purchaser and a Supplier from Nepal, the
dispute shall be referred to adjudication or arbitration in accordance with the
laws of Nepal. Rule of arbitration:
7. Details of Shipping and other Documents to be furnished by the Supplier:
Upon delivery of the Goods to the Purchaser, the Supplier shall submit the following documents
to the Purchaser:
a. copies of the Suppliers invoice showing Goods description, quantity, unit price,
and total amount;
b. original and copies of the negotiable, clean, on-board bill of lading marked
freight prepaid and copies of nonnegotiable bill of lading;
c. copies of the packing list identifying contents of each package;
d. insurance certificate;
e. Manufacturers or Suppliers warranty certificate;
f. Inspection certificate, issued by the nominated inspection agency, and the
Suppliers factory inspection report; and
Certificate of origin
8. The minimum insurance of procurement goods to be 40 % of budget amount.
9. Payment for Goods and Services supplied from within the country:
Payment for Goods and Services supplied from within the Purchasers country shall be
made in Nepalese rupee, as follows:
Advance Payment: Ten (10) percent of the Contract Price shall be paid within thirty (30)
days of signing of the Contract against a simple receipt and a bank guarantee for the
equivalent amount and in the form provided in the Bidding Documents or another form
acceptable to the Purchaser.
15


On Delivery: Eighty (80) percent of the Contract Price shall be paid on receipt of the
Goods and upon submission of the documents specified.
10. Payment of Services
a. Payment of Installation:
b. 80% payment for Installation will be made within 30 days from the date of
issuance of PAC.
c. Final 20% payment for Installation will be made after the issuance of Final
Acceptance Certificate for the complete system.
11. Delivery, installation and commissioning of Goods: Within 45 Days from the date of
signing of the Contract
12. The Advance Payments shall be: 20% and shall be paid to the Contractor no later than
Completion date
13. Amount and form of Performance Security
14. Responsibility for transportation of the goods as specified by INCO terms.
VII. PROBABLE AGENDA FOR NEGOTIATION WITH THE SHORT
LISTED BIDDERS:
Though the general and special terms and conditions to the contract are listed in bid documents,
there exist some probable agendas which need to be negotiated firmly with the contracting
parties. The short listed bidders, who have passed both the technical and financial evaluation, are
now in position to be selected as possible contractor who will deliver the required goods to the
project. Except the above listed special conditions; the following could be the schema for
negotiation with the short-listed bidders.
Standards to be followed:
The negotiations regarding the standard for the procurement and further execution of
contract should be made with the bidders. There exist high chances of supplier using its
own standard for working, which may not be adequate for the project and may not be
able to satisfy the procuring party. Thus, the agreed upon standard for work is to be
established so that the conflict regarding the standards may not arise.
16



Meetings to be attended:
Since, meeting with the suppliers helps to understand the current status of the project
procurement activity, the negotiations regarding the schedule and team for the attendance
of meeting should be decided beforehand with the bidders. The negotiations regarding the
appropriate time for the frequent meeting with the bidders will help to conduct it
smoothly later.
Staffing Plan:
The composition of staffs and their qualification can be issue of negotiation between the
parties. The project can ask for the suppliers to include local people as their staffs for the
required position, if qualification matches. For the task like covering the ceiling with
false board and plastering does not require sophisticated knowledge and the local
employees can do it. So, the negotiations regarding such provisions should be conducted.



Selection of Subcontracting partners:
Further the project can negotiate with short listed bidders about the selection of sub-
contracting partners. The issues regarding the origin and quality of sub-contractors can be
negotiated between the project and short listed bidders.
VIII. OPEARATIONAL AND PURCHASING STRATEGY
TIAs project for customer service improvement is an operational project which is being
conducted to improve the facilities being provided at the airport. The project would improve
information dissemination at the airport as well as passenger comfort and outlook of the airport
terminals.
A. OPERATIONAL STRATEGY
Even though projects are part of an overall organization, every project needs to have a strategy of
its own, which should normally be in alliance with the strategy of the overall organization.
17


Operational strategy of a project is a plan of action that describes how the project would employ
their resources in the procurement of the products and services. While undertaking any project,
the project team needs to decide upon two important operational strategies on which to function.
These two operational strategies are:
1. Conformance (completing the project according to the defined time, cost and quality
standards) and
2. Performance (attempting to complete the project overcoming the standards set, i.e. at
lesser time, lesser cost or better quality)
Now, even though performance appears to be a better strategy for any project, there is
always a trade-off between time, cost and quality because we cannot focus on improving
all three of them at the same time.
For Tribhuwan International Airports customer service improvement project, our operational
strategy would be based on a combination of both conformance as well as performance strategy
depending on the trade-off we could offer for all the three dimensions: time, cost and quality.
Project
TIA
Operational Strategy
Time Cost Quality
Conformance Performance Conformance

Since this is an operational project, time is not a very important factor that we would have to try
to improve. The scheduled date for completion of project is Poush 15, 2071, which is also the
scheduled date for up gradation of radar component. Hence, the project would not have any
added advantage even if completed before this date. Thus, the team could follow conformance
strategy regarding delivery time. This would also be applied for quality because the project
involves only procurement, installation and other maintenance tasks. There would already be a
standard quality set for these tasks and hence, the team would work on conformance strategy for
quality as well.
18


However regarding cost, the project is being funded by international donors but the deficit
amount needs to be covered by the governments budget itself. Hence, in regards to cost, we
could try harder to minimize the cost incurred as much as possible, maintaining the standard
quality. This could be done by giving weightage to cost factor during procurement of goods and
services. We should however note that the cost should not be the only deciding factor but the
suppliers who meet the standard quality but also have lower cost could be selected.
B. PURCHASING STRATEGY
Purchasing strategy refers to the decisions that are to be made while making purchasing
decisions of any good or services required for the project. The decisions involve nature of
relationships between the supplier and the buyer (whether or not the project should be vendor
supported) as well as the required sourcing arrangements (single source/parallel source).
For our project of customer service improvement, the procurements done like 32 LCD TV, air
conditioners, electric pendants and decorative lights which are all electronic and technological
devices, require supply as well as installation from its suppliers. For this, our purchase should be
vendor supported, i.e. we need support from vendors in term of installation as well as service.
We would also need after sales service from the vendors in case of any problems or regular
maintenance of the devices.
Likewise, since the cost of overall purchase is very high, we are going for bidding process for
most of the deliveries. Hence, the source of our purchase would be parallel source, whereby we
would purchase the different goods for different suppliers and the selection will be done on the
basis of criteria set by the Civil Aviation Authority. T
Thus, the project will have a centralized purchasing system with the sourcing arrangement being
parallel source and the nature of relationship would be vendor supported.
19


IX. PROCESS MAP:
The Process map describing the major phases of the project and key activities within the each
phase is presented below in tabular form.
Start of the project Acquire Team Members 12 team members
Procurement of
32 LCD flat
display
- Request for quotation for
LCD flat display
- Evaluation of quotation
- Supply of LCD flat
display and installation
- Quantity Required: 10 pieces
- Budget Amount : Nrs.
4,60,000
- Installation with accessories
of steel of high density
aluminum
Procurement of
Air conditioning
set
- Preparation of Bid
document of Air
conditioning set
- Invitation to Bid for Air
conditioning set
- Evaluation of Bid
- Supply of LCD flat
display and installation
- Quantity Required: 10 pieces
- 1000 watts, 220 volt, 15 A flat
12 by 30 size, noiseless Air
conditioning set
- Budget Amount : 95,00,000
- Installation with accessories
of steel of high density
aluminum
Procurement of
Electrical pendants
- Request for quotation for
electrical pendants
- Evaluation of quotation
- Supply of Electrical
pendants
- Submit catalogue and
suggestions
- Quantity Required: 06
- Budget Amount : Nrs.
9,50,000
- Submit catalogue and
suggestions for the third item
by visiting the airport
20



Procurement of
Decorative light
system
- Request for quotation for
Decorative light system
- Evaluation of quotation
- Supply of Decorative
Light System and
installation
- Cost Limit: Nrs. 9,50,000
- Provide a design input as well
as the financial cost of all
accessories.


Covering and
coloring the ceiling
- Check lists of paint
service provide and call
for the job
- Quantity Required: according
to bill quantity
- Budget Amount: 25,20,000 (
18000sq ft * Nrs. 140 per sq
ft)
Procurement of
External Auditor
- Check the qualification of
auditors and select for
auditing