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Documentation on Open RFQ

November 08, 2012

Purchasing documentation on

Open Request for Quotations for contract awarding to


provide services for media buying, planning and post-
campaign analysis for a period of one year to K-
Telecom CJSC

Yerevan
2012
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Documentation on Open RFQ
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Contents

1. General Provisions.............................................................................................................3
1.1. General information on Request for Quotations..........................................................3
1.2. Legal status of procedures and documents................................................................3
1.3. Other provisions...........................................................................................................4
2. Subject of RFQ..................................................................................................................5
2.2 Additional demands for products (if there are additional works subject to fulfillment,
or there are additional demands or compliance documents are required)..................5
2.2.1 Lot 1. Media planning and buying for TV advertisement...........................................5
2.2.2 Lot 2. Media planning and buying for Radio advertisement......................................7
2.2.3 Lot 3. Media planning and buying for On line advertisement...................................8
3. Order of execution of Request for Quotations............................................................10
3.1. Preparation of Quotations..........................................................................................10
3.2. Requirements to Applicants. Approval of compliance with the presented
requirements..............................................................................................................11
3.3. Submission and acceptance of Quotations...............................................................11
3.4. Decision-making........................................................................................................13
3.5. Agreement conclusion...............................................................................................13
3.6. Notification of Applicants about the results of Request for Quotations.....................13
4. Samples of standard forms of documents, included in the Annex...........................14
4.1. Letter about offer submission (Form 1).....................................................................14
4.2. Applicants Questionnaire (Form 2)...........................................................................16
4.3. Applicants Work History Reference List (Form 3).....................................................18

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1. General Provisions

1.1. General information on Request for Quotations

1.1.1. K-Telecom CJSC (legal address: 4/1 Argishti str., Yerevan, Armenia),
(hereinafter referred to as the Organizer), with the public notification posted on its
website at www.mts.am/procurement on conducting Open Request for Quotations,
has invited agencies specialized in media buying, planning and post-campaign
analysis (hereinafter referred to as the Applicants) for submission of Proposals with
the right to conclude agreement on Media buying, planning and post-campaign
analysis with K-Telecom CJSC for a period of one year.

1.1.2. For further information, please apply to the Organizer


Contact person: Rousanna Apoyan
Procurement Leading Specialist
Administration Services Department
Purchasing Unit
K-Telecom CJSC (VivaCell-MTS)
4/1 Argishti Street
Yerevan 0015, Armenia
Tel.: +374 93 298507
Fax: +374 93 298541
E-mail: procurement@mts.am

1.1.3. No fee is foreseen for provision of RFQ Documentation.

1.2. Legal status of procedures and documents

1.2.1. The Open Request for Quotations (RFQ) is not a tender and the given
procedure of Open RFQ is also not considered as a public tender. It is a collection
of respective offers available in the market, as a result of which the best offer might
be accepted. The process of the Request for Quotations is not regulated by the
Articles 463-465, 1043-1044 of RA Civil Code and Law On Public Auctions.

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1.3. Other provisions

1.3.1. The Applicants independently incur the expenses with regard to the
preparation and submission of the Quotation, whereas the Organizer is not
responsible for those expenses and has no obligations regardless of the course and
results of the purchasing process.

1.3.2. The Organizer reserves the right to reject the Quotation if he/she ascertains
that the Applicant expressly or by implication gave, agreed to give or offered the
Organizers employee reward in any form: job, service, any value as a stimulus that
can influence the decision-making to define the best offer.

1.3.3. The Organizer reserves the right to cancel the purchasing process on
conducting an Open RFQ at least 3 days prior to the closing date of this Open RFQ
(as specified in item 3.3.3.), respectively notifying about it the Applicants via posting
of this information on www.mts.am/procurement webpage. The Organizer bears no
responsibility for the expenses incurred by the Applicants or Third Parties as a result
of such cancellation.

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2. Subject of RFQ
Lot 1 Media planning and buying for TV advertisement;
Lot 2 Media planning and buying for Radio advertisement;
Lot 3 Media planning and buying for Online advertisement.

Applicant shall submit:


- Quotation as per the attached Annexes 1, 2 and 3;
- Separate quotation shall be submitted for each Lot.
Total Pricelist (Annex 4) for other services not included in the list of Annexes 1, 2
and 3 (The best offer shall be selected taking into account the Quotations as per
Annexes 1, 2 and 3, as well as Total Pricelist).

Applicant shall precisely submit the applied discounts.


Contract for a period of one year with possible extension shall be concluded with
the selected supplier (Applicant that has offered the best unit price).
Submitted quotations must be valid during the entire period of the contract without
any modifications.

2.2 Additional demands for products (if there are additional works subject to
fulfillment, or there are additional demands or compliance documents are
required)

2.2.1 Lot 1. Media planning and buying for TV advertisement


Media buying, planning and post-campaign analysis agency shall be responsible
for selecting media for TV advertisement placement on behalf of the client.
The agency shall be responsible for effective media planning for Yerevan and
Regional TV channels for assisting the client in achieving business objectives
through his/her advertising budget by recommending the best possible use of
available TV channels. Agencys role shall include analyzing target audience,
keeping abreast of media developments, reading market trends and
understanding motivations of consumers, negotiations with TV channels of
Yerevan and marzes in order to get better price for the client and the best
positioning in the ads blocks.

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The agency shall provide with weekly, monthly, quarterly TV media reports for all
operators carrying out their activities in the Armenian market. Reports shall
include TRP, GRP, SOV/SOS, AMR, SHR, AFF, Reach, Channel mix (the list may
be changed as per the clients demand) with analytical graphics, assessments and
recommendations. All reports shall be provided in the template provided by the
client.
Target groups for the reports shall be mass market, business market, youth 14-24
and total 14-60:
The agency shall monitor and control media plans during running campaign on
weekly bases, compare monitoring reports with media plans and if there are any
missed or not fully broadcasted advertising spots, coordinate and require
compensation from the TV Channels.

Technical part
Analyzing and selecting communication vehicles (tactical media planning and
optimization)
Leveraging the purchasing power of the advertiser (negotiating and buying)
Presenting a detailed post-campaign analysis (training and sharing information, if
needed)
Ensure confidentiality of information exchanged
The only source for the requested reports shall be AGB Nielsen Armenia
For detailed technical specification please refer to Annex 1 Form B

Commercial part
Commission fee shall be paid separately to the agency.
Applicant shall present budget for media services and the rate for broadcasting
ads on Yerevan and regional TV channels without commission fees or additional
service payments (which shall be presented in the table indicated in Annex 1
Form A).
Applicants registered in the RA shall separately indicate the monthly fee for
services listed in Annex 1, Form B.
The price/rate for service provision shall be indicated in AMD, VAT excluded.

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Media planning average term for service implementation equals to 2 business


days after placing the order. In separate cases, it will be required to implement the
order within shorter terms about which the contractor shall be informed in
advance.
Media Planning Strategy for year 2013 the service implementation period shall
be maximum one month after placing the order.
Weekly, monthly and quarterly monitoring reports submission terms are
mentioned below:
Weekly reports reports of each week shall be presented till the end of
the next week.
Monthly reports reports shall be presented on the 7th working day of
the next month.
Quarterly reports reports of each quarter shall be presented on the
7th working day of the next quarter.
Payments shall be made according to monitoring reports. 100% within 10 banking
days after submission of the final invoice and signing of delivery-acceptance act.
The contract shall include data nondisclosure clause.

2.2.2 Lot 2. Media planning and buying for Radio advertisement


Media agency shall be responsible for selecting media for Radio advertisement
placement on behalf of the client. Agency is responsible for an effective media
planning for Yerevan and Regional radio stations for assisting the clients in
achieving business objectives through their advertising budgets by recommending
the best possible use of available Radio Stations. Agencys role shall include
analyzing target audiences, keeping abreast of media developments, reading
market trends and understanding motivations of consumers, negotiations with
Radio Stations, Yerevan and regions, for getting better price for the client and the
best positioning in the ads blocks. Agency shall follow up on media plans during
running campaigns, audit and reconcile all invoices, distribute radio advertising
spots to all radio stations. Agency shall be able to create and record radio spots
as well.

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Technical part
Analyzing and selecting communication vehicles
Leveraging the purchasing power of the advertiser (negotiating and buying)
Ensure confidentiality of information exchanged
For detailed technical specification please refer to Annex 2 Form B.

Commercial part
Commission fee shall be paid separately to the agency.
Applicant shall present rate for broadcasting ads on Yerevan and regional radio
stations (which shall be presented in the table indicated in Annex 2 Form A).
The price/rate for service provision shall be indicated in AMD, VAT excluded.
Payments shall be made according to monitoring reports (if available). 100%
within 10 banking days after submission of the final invoice and signing of
delivery-acceptance act.
The contract shall include data nondisclosure clause.

2.2.3 Lot 3. Media planning and buying for On line advertisement


Media agency shall be responsible for selecting websites and posting banners on
behalf of the client which shall be addressed to target audiences and/or comply
with the Company interests.
Agency is responsible for the selecting and recommending the best possible use
of available websites. Agencys role shall include analyzing target audiences,
negotiations with contacts of websites, for getting the best prices and the best
positioning of the websites.
Agency shall distribute flash banners to all selected websites, manage
replacement within 1 working day, audit and reconcile invoices and present
weekly and monthly reports/statistics/ratings of the websites.
Weekly, monthly and quarterly monitoring reports submission terms are
mentioned below:
Weekly reports reports of each week shall be presented on each
Tuesday of the next week.
Monthly reports reports shall be presented on the 2nd working day
of the next month.
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Technical part
Analyzing and selecting websites for the client
Leveraging the purchasing power of the advertiser (negotiating and buying)
Ensure confidentiality of information exchanged
For detailed technical specification please refer to Annex 3 Form B.
Commercial part
Commission fee shall be paid separately to the agency.
Applicant shall present the pricelist with the following information in accordance
with Annex 3 Form A.
The price/rate for service provision shall be indicated in AMD.
The following payment terms are recommended: 100% within 10 banking days
after submission of the final invoice and signing of delivery-acceptance act on
monthly basis.
The contract shall include data nondisclosure clause.

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3. Order of execution of Request for Quotations

3.1. Preparation of Quotations

3.1.1. General requirements to Quotation


The Applicant who wishes to respond to the RFQ must prepare a Quotation,
which shall include:
3.1.1.1. Letter about offer submission in the form and according to
instructions, stipulated in this Documentation (Form 1 );
3.1.1.2. Price Quotation in accordance with instructions indicated in this
RFQ;
3.1.1.3. Documents, which prove the Applicants compliance with
requirements of this RFQ (sub-point 3.2.).
3.1.1.4. Applicants Work History Reference List - the list of companies and
contact persons that can provide information/reference (Form 3).
3.1.1.5. The CSR (Corporative Social Responsibility) policy of the applicant
and the list of the CSR activities realized during the last two year.

3.1.2. The Applicant shall submit all documents in hard copies. The Applicant shall
also submit electronic version of the Quotation to procurement@mts.am e-mail
address before RFQ submission deadline. The electronic version of the file shall be
protected by password of at least 12 characters combined of letters, numbers,
symbols etc. The electronic version of the Quotation to be provided in Word or
Excel format with copy/paste option. The Quotation should be prepared in Armenian
(Armenian Unicode font to be used) and/or English The size of the one e-mail is
limited and cannot be more than 6 MB. The password of the Quotation shall be
enclosed in the envelope of the hard copy of the Quotation submitted to Organizer.
The Applicant bears responsibility for non-compliance to this request.

3.1.3. The Applicant is entitled to submit only one Quotation. In case of violation of
this rule, all Quotations of this Applicant are rejected without consideration of their
merits.

3.1.4. If there are multiple lots, the Participant prepares an individual Quotation for
each lot applied. All Quotations shall be filled in according to this purchasing
Documentation and have to be placed in different envelopes and shall be sealed
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with the stamp of the Applicant. The lot numbers have to be specified on the
envelopes. Afterwards the envelopes have to be inserted into the envelope of the
Applicant.

3.1.5. Each document, enclosed in Applicants Quotation, must be sealed with


Applicants seal and signed by the duly authorized person.

3.1.6. Documents (sheets or informational envelopes), included in Quotation,


should be fixed or packed in a way that would prevent documents or informational
envelopes from accidental loss or replacement.

3.1.7. Applicant shall provide one original Quotation in Armenian and/or English.

3.2. Requirements to Applicants. Approval of compliance with the presented


requirements

3.2.1. Requirements to Applicants


3.2.1.1. Any legal entity has the right to submit Quotations in accordance
with the rules and procedures prescribed in this Documentation. In
order to qualify for the best offer and for the right to conclude
Agreement, Applicant should comply with the following
requirements at the moment of the Quotation submission in
compliance with this Documentation on Request for Quotations:
a) Work experience in the Armenian market not less than 3
year(s);
b) Organization should not be filed for bankruptcy, liquidation
or reorganization; its property should not be arrested;
3.2.1.2. Applicant should include in the Quotation Documentation the copies
of state and tax registration and certificates;

3.3. Submission and acceptance of Quotations

3.3.1. Prior to submission, the Quotation should be properly sealed in the


envelopes (packages, boxes, etc.). The following information should be indicated on
the envelope:

K-Telecom CJSC Original/Copy of the Quotation

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4/1 Argishti str., Yerevan, Armenia

Do not open before 17:00 oclock (Yerevan time) 29/11/2012.


It can be opened only at the Purchasing Committee meeting.
__________________________________________________________________________

(Complete name of the RFP, which the Quotation is submitted)

__________________________________________________________________________

(Number or Complete name of the Lot, which the Quotation is submitted)

______________________________________

______________________________________
(Full business name of the Applicant and its mail address)

3.3.2. The Applicant shall submit all documents in hard copies either to the
Organizers location: K-Telecom CJSC (legal address: 4/1 Argishti str., Yerevan,
Armenia) or to the Courier Service before the deadline stipulated by item 3.3.3. of
this RFQ. In case of delivering the hard copy of the Quotation by Courier Service,
the Applicant should send the delivery related details (the Courier Companys name,
the Airway bill Number, or Tracking Number) to the procurement@mts.am e-mail.

3.3.3. Organizer stops accepting Quotations at 17:00 oclock (Yerevan time)


29/11/2012. Anyway the Applicant should pass the hard copy to the Organizer or
Courier Service before the set deadline. Quotations, received by the Organizer or
passed to the Courier Service later than the term indicated above, will be rejected
by the Organizer without consideration of their essence.
3.3.4. Organizer submits the reference to the person, who delivers the envelope,
about its receipt with indication of receipt time.

3.4. Decision-making

3.4.1. At the closed executive session the Tender Committee established for RFQ
processes makes a decision on conducting additional stages, or on determination of
the best offer (based on price criteria) and Agreement conclusion, or about closing
the given procedure of RFQ without determination of any best offer, if none of the
Applicants meets the requirements of this procedure and/or RA legislation.

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3.4.2. Under other equal conditions, the preference shall be given to the Applicant
presenting the best CSR activities throughout the last two years.

3.5. Agreement conclusion

3.5.1. Agreement between Organizer and Applicant that provided best offer is
concluded within 30 days after the end of RFQ procedures and the execution of the
Protocol on its results, or within other time limits defined in RFQ or within the period
specified by the Organizer.

3.6. Notification of Applicants about the results of Request for Quotations

3.6.1. Organizer within five working days following the determination of the best
offer publishes the information about RFQ results on its website which indicates:
a) Title of the Applicant that provided the best offer;
b) Brief description of the subject, place, date and number of protocol of the
Tender Committee.

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4. Samples of standard forms of documents, included in the Annex

4.1. Letter about offer submission (Form 1)

4.1.1. Form of letter about offer submission


Beginning of form

____________________
________________________

Dear Sirs!

Having studied the Notification on holding the Request for Quotations processes, which
has been published on K-Telecom CJSC website at www.mts.am/procurement on
dd/mm/yyyy and Documentation on the Request for Quotations on (Subject of
RFQ)___________, and accepting the requirements of the Request for Quotations ls
stipulated by them,

_______________________________________________________________________,
(Applicants full name with indication of organizational-legal form)

Registered at
_______________________________________________________________________,
(Applicants legal address)

___________________________is considered as _______________________________,


(Name of Applicant) (Type of Tax, working with VAT or other tax)

Wishes to participate in the RFQ process with a Quotation to conclude an Agreement on


provision the following works, goods or services:
________________________________________________________________________
(Brief description)

This Quotation has legal status of offer and is valid at least 3 months from the date of its
submission.

This Quotation is complimented with the following documents, including the integral
annexes:

1. on ____ sheets;
2. Documents, which prove Applicants compliance with the established
requirements - on____ sheets;

____________________________________
(Signature, stamp)

____________________________________
(Full name and position of the Signatory)

End of form

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4.1.2. Instructions for filling in the form:

The letter should be executed on Applicants official letterhead form. The date and number
should be indicated by the Applicant in the letter in accordance with the rules of document
flow established in its organization.

Applicant should indicate its full title (with indication of organizational-legal form) and legal
address.

Applicant should indicate the cost on provision of the works, goods or services in
figures and words, in AMD and/or US dollars, VAT inclusive, (The prices of implementation
of works, delivery of goods and provision of services shall be indicated in Annexes without
taxes, except for applicants working with simplified tax)
.

The letter should be signed and sealed according to requirements of sub-points 3.1.5.

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4.2. Applicants Questionnaire (Form 2)

4.2.1. Applicants Questionnaire form


Beginning of form

Attachment 1 to the letter about offer submission


dated _________________ city, __________

Questionnaire for Applicants

Applicants title and address _________________________________

Title Applicant information


1. Applicants organizational-legal form and
business name
2. Certificate of registration in the Uniform
State Register of Legal Entities
(date and number, issued by)
3. Applicants tax code
4. Legal address
5. Postal address
6. Bank details (name and address of the
bank, number of the Applicants bank
account, bank telephones, other bank
details)
7. Applicants phone numbers
(with the indication of the city code)
8. Applicants fax number
(with the indication of the city code)
9. Applicants e-mail address
10. Full name of the Applicants head who is
entitled to sign pursuant to the Applicants
constituent document, with the indication
of the position and contact telephone

____________________________________
(Signature, stamp)

____________________________________
(Full name, position of the signatory)

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End of form

4.2.2. Instructions for filling in the form:

Date and number of Quotation are indicated by the Applicant in accordance with the letter
about offer submission.

Applicant indicates its business name (including its organizational-legal form) and address.

Applicants must fill in the above mentioned table in all positions. In case of absence of any
data, indicate the word none.

In row 6 Bank details are indicated the details, which will be used during Agreement
conclusion.

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4.3. Applicants Work History Reference List (Form 3)

Applicants Work History Reference List


Beginning of form

Attachment 2 to the letter about offer submission


dated _________________ city, __________

Reference List

Applicants title and address _________________________________

Work History Reference Table


Contact
Company Project Project Project End Person Name
N
Name Name/Type Start Date Date & Phone
Number
1
2
3
4
5
6
7
8
9

____________________________________
(Signature, stamp)

____________________________________
(Full name, position of the signatory)

End of form

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