Banking Services - eobi.gov.pk

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Banking Services Request for Proposal

Last Date for Submission: 27/6/2014

Bid Opening Date: 27/6/2014

Time & Place: 11:30 am at EOBI Head Office, 8th Floor

Web site: eobi.gov.pk

Tele no: 92 21 99240083-84

Contact Person:

Mr. Nayyar Mahmood

DDG (B&C-I)

Ex-AwamiMarkaz Shara-e-Faisal, Karachi

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TABLE OF CONTENTS

1. INTRODUCTION

2. SCOPE OF WORK

A. Pension Disbursement

B. Contribution Collection

3. BID SUBMISSION REQUIREMENT

4. SELECTION PROCEDURE

5. TERMS OF PAYMENT

6. LIQUIDATED DAMAGES

7. GENERAL TERMS & CONDITIONS

8. TERMINATION OF CONTRACT

ANNEXURES

Bid Form

Financial Information Form

Specimen Cover Letter

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1. INTRODUCTION

Employees‟ Old-Age Benefits Institution (EOBI), herein after referred as Institutionwas

established under section 4 of the EOB, 1976 (Act no. XIV) Providing various benefits to

the eligible insured persons working in different kind of establishments. The Institution

collects monthly contributions from the establishments/employers in respect of the

employees working therein directly or indirectly @ 6% (5% from the employer and 1% from

the employee) of the minimum wages prevailing in the country. The institution

isanautonomous body working under The Ministry of Overseas Pakistanis& Human

Resource Development, HRD Division, Government of Pakistan.

EOBI is a Federal entity having its Head Office at 190/1/B, Block 2, PECHS, Karachi with

39 regional offices and 34 field offices in all major cities of Pakistan from Karachi to Gilgit.

It has three controlling offices called B&C I, B&C II and B&C III in Karachi, Lahore, and

Islamabad respectively to supervise and monitor the operational and other activities of all

these offices falling within their respective jurisdictions. The total strength of employees in

the Institutionis about 1100 and EOBhas its independent Fund of Rs. 270 billion

approximately.

Major operational activities of EOBI include:

Identification & Registration of employers/establishments employing 5 or more

employees;

Identification & Registration of employee employed in all registerable establishments;

Collection of monthly EOB Contribution as per prescribed rates;

Disbursement of benefitsavailable under the Act, 1976to the registered and eligible

insured persons.

Following statistical information shows the steady progress EOBI has made since its

inception from July 1976:

Active Employers: About 67,000

Monthly Contribution: Rs. 1.2 billion (average)

Registered Pensioners: More than 400,000

Pensioner Paid: Rs. 1.0 billion per month (average)

Present channels for pension disbursement:

NBP branches, Easy Paisa/Tameer Bank outlets/branches, and six e-sahult NADRA centers.

Monthly average transactions:

Contribution collection: 27,000 per month

Pension Disbursement: 225,000 per month

EOBI intends to acquire services of commercial banks for Collection of monthly

contributions from the employers/insured persons and Disbursement ofbenefitsusing a

completely automated and professionally designed mechanism utilizing available network of

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its branches across Pakistan, for a period of five (5) years. Range of services required are

outlined in the next chapter titled “Scope of Services”.

2. SCOPE OF WORK

Primarily, EOBI‟s requirement of services can be categorized as “Pension Disbursement”

and “Contribution Collection”. Both type of services have their own distinct and specific

requirements, details of which follows.

A. DISBURSEMENT OF PENSION

Presently, more than 325,000 pensioners are drawing monthly pensions ranging from

Rs. 3,600 as minimum pension to a maximum of Rs. 6,250 per month as per formula, the

total monthly payout to EOBI pensioners is around Rs. 1.2billion per month. As the

matter is very sensitive and highly important, therefore in order to ensure the smooth and

uninterrupted payments/ servicesfollowing minimum requirements are to be met:

i. The selected bidder shall be required to open bank accounts or branchless banking

accounts for all EOBI pensioners;

ii. The selected bidder shall be required to issue ATM cards to all EOBI pensioners;

iii. The selected bidder shall be required to provide bio-metric proof-of-life in respect of

all EOBI pensioners every six months;

iv. The selected bidder shall make adequate arrangement to demonstrate its capability of

meeting technological requirements set forth by EOBI for data exchange using Web

Services;

v. The selected bidder shall provide on a daily basis (preferably real time) the

information/data (soft form only) of all pensions disbursed along with system-

generated bank statements (soft and hard copies) from individual branches to regional

offices of EOBI;

vi. The selected bidder shall provide on a monthly basis the information/data (soft form

only) of all pensions disbursed along with system-generated bank statements (soft and

hard copies) from individual branches to regional offices of EOBI;

vii. The selected bidder shall accept the responsibility of ensuring reconciliation of soft

data and bank statements at the end of each month, quarter, half-year, and year,

respectively;

viii. EOBI shall provide a monthly scroll of pensioners along with necessary details to the

selected bidder at least three working days before first of each month along with

required funds for pension disbursement;

ix. The selected bidder shall ensure the payments are credited to the pensioners‟ bank

accounts on first day of each month (in case first day of a month is a closed day, then

on the following working day) but not later;

x. The selected bidder shall provide corrected transaction data/information should it

transpire that a pension is incorrectly paid, either more or less;

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xi. The selected bidder shall not have the amendment rights over the data/information

provided by EOBI and shall only extend the relevant part of it to its release points in a

“read/view only” form;

xii. The selected bidder shall not make any payment to any individual whose name is not

included in the monthly scroll provided by EOBI;

xiii. The selected bidder shall have no authority whatsoever on changing the amount

sanctioned by EOBI and any error of omission in the data provided by EOBI shall

immediately be referred to EOBI for a resolution;

xiv. The selected bidder shall put in place an elaborate system of lodging complaints and

resolution thereof, of complaints relating to its branches, tellers, or other officials;

xv. The selected bidder shall have to initiate opening of bank accounts and ATM card

issuance within 10 days of the issuance of work order and shall be required to

complete the activity in three months;

xvi. The selected bidder shall demonstrate procedure of accounting and audit of funds

being provided by EOBI for the purposes of pension disbursement;

xvii. The selected bidder shall provide EOBI all the required MIS with pre-defined

frequency, details of which shall be worked with mutual consent;

xviii. The selected bidder shall demonstrate its capacity to provide bio-metric proof-of-life

every six months during the period of contract. For cases where bio-metric proof-of-

life is not possible, a suitable alternative may be worked out after obtaining consent

and approval from EOBI.

xix. The selected bidder shall provide EOBI a list of branches for pension.The list of

braches shall be compiled in consultation with EOBI keeping in view the facilitation

of EOBI pensioners.

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B. CONTRIBUTION COLLECTION

i. The selected bidder shall make adequate arrangement to demonstrate its capability of

meeting technological requirements set forth by EOBI for data exchange using Web

Services;

ii. The selected bidder shall arrange and facilitate EOBI contributors to deposit EOB

contribution in cash, cheque, and/or pay order form;

iii. The selected bidder shall provide facility for on-line(Net-Banking)transfer of funds for

employers who wish to pay EOB contribution using this facility;

iv. The selected bidder shall nominate branches for contribution collection as per details

to be provided by EOBI;

v. The selected bidder shall provide on a daily basis the information/data (soft form

only) of all contributionscollected along with system-generated bank statements (soft

and hard copies) from individual branches to regional offices of EOBI;

vi. The selected bidder shall provide on a monthly basis the information/data (soft form

only) of all contributionscollected along with system-generated bank statements (soft

and hard copies) from individual branches to regional offices of EOBI;

vii. The selected bidder shall accept the responsibility of ensuring reconciliation of soft

data and bank statements at the end of each month, quarter, half-year, and year,

respectively;

viii. The selected bidder shall provide a daily contribution collection statement to regional

offices (soft and hard copy) categorized on branches with number of contribution

chalans received and amount involved therein;

ix. EOBI shall provide on a daily basis details of contributors for contribution collection;

x. The selected bidder shall ensure the payments are credited to the EOB Central

Collection account daily in real time;

xi. The selected bidder shall provide corrected transaction data/information should it

transpire that a contribution amount is incorrectly recorded;

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3. BID SUBMISSION REQUIREMENT

The objective of bid submission requirement is to provide bidders the information to submit

their bid in response of this RFP according to the specifications defined in this RFP and in

order/sequence as set forth in this document. Bidders must follow following requirements for

their proposals/bids.

3.1. For this tender PPRA‟s Para 36(a) „Single stage - One Envelope Procedure‟ for open

competitive bidding shall be adopted.

3.2. Bids shall comprise of single envelope containing duly filled Bid Form and Financial

Proposal and clearly marked As “Bid Form” and “Financial” proposal.

3.3. Bidder shall submit “Bid Form” and “Financial Proposalat the address given in Tender

Notice and in this RFP by courier or by hand.

3.4. Technical proposals shall contain Company profile, proof of financial strength, location

of branches, experience in related field, technical staff, projects completed, major clients‟

list, etc.

3.5. The bidder must provide support services execution plan with Technical Proposal.

3.6. The bidder must attach all required documents with the proposal.

3.7. Bidders are required to fill the Bid Form attached at Annex-I and submit it along with

Financial Proposal at Annex-II. All bids must be accompanied with a cover letter as per

specimen given at Annex-III.

3.8. Scope of work may be increased/decreased as per EOBI requirement.

3.9. A bank draft equal to Rs. One million should accompany the bid as part of financial

proposal as Bid Security in form of Pay Order drawn in favor of EMPLOYEES' OLD-AGE

BENEFITS INSTITUTION, HEAD OFFICE, KARACHI, Account no. A/C 056266-3,

National Bank of Pakistan. The bid shall not be considered without Bid Security.

3.10. Total bid value shall cover cost of software support services and ancillary costs and all

applicable Govt. taxes.

3.11. Bidders shall be responsible to quote for both contribution collection and pension

distribution;

3.12. Bidders are required to submit their financial proposal in PAK Rupees (PKR).

3.13. Integrity pact need to be furnished on legal stamp paper along with bid. If not provided

bids are likely to be rejected.

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4. SELECTION PROCEDURE

4.1 Bidders fulfilling eligibility criteria shall be considered for opening of financial bids.

4.2 Financial proposals of bids found ineligible will be returned un-opened.

4.3 Only eligible and lowest evaluated financial bid will be accepted.

4.4After the approval of contract award, a contract agreement on the stamp paper worth Rs.

100/- shall be executed by the firm with selected bidder within 15 days from the date of

issuance of Letter of Intent.

5. TERMS OF PAYMENT 5.1 Payment of contract price shall be made in the following manner. However, EOBI may

consider any other alternative arrangement falling in the legal framework of Government of

Pakistan (GoP) at the time of Contract signing with selected bidder.

5.5 Payments for service charges will be made on quarterly basis. Invoices will be cleared as

soon as possible not exceeding 30 days upon receiving the same.

5.6 All payments shall be made through Cross Cheque in the Pak Rupees after deducting all

applicable taxes at source.

5.7 The bid security amount of the successful bidder will be returned after the signing of the

contract.

6. LIQUIDATED DAMAGES

6.1 In case of delay of delivery of services for reasons within control of the selected bidder,

EOBI reserves the right to get specific damages not exceeding 10% of the average monthly

contribution or pension disbursed, whichever is higher.

6.2 If the work is not executed to the entire satisfaction of EOBI, EOBI reserves the right to

reject it altogether with serving 30 days prior notice and get the work done by some other

party at the risk and cost of the selected bidder.

7. GENERAL TERMS & CONDITIONS

Following general terms & conditions apply to RFP:

7.1 The bidder should be registered with Income Tax Department.

7.2 An affidavit to the effect that the firm has not been blacklisted by any Government/Semi

Government organization.

7.3 EOBI may reject all bids or proposal at any time, prior to the acceptance of a bid or

proposal, as per PPRA rules.

7.4 Validity period of the bids shall be 120 days.

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7.5 Bids are liable to be rejected if; they are not conforming the terms, conditions and

specifications stipulated in this RFP.

7.6 During the examination, evaluation and comparison of the bids, the EOBI at its sole

discretion may ask the bidder for clarifications of its bid.

7.7 The request for clarification and the response shall be in writing/email. However, no

change in the price or substance of the bid shall be sought, offered or permitted after bid

submission.

7.8 If the contract amount exceeds Rs. 10 Million annually, the selected bidder has to furnish

the integrity pact.

7.9 Transaction Cost shall cover cost of all services to be provided inclusive of applicable

Government taxes and shall account for financial evaluation.

7.10 The amount submitted as Bid Security shall be refunded to the unsuccessful bidders

after the decision of EOBI for the award of said tender.

7.11 If there is a discrepancy between unit price and total price in the submitted bid which is

obtained by multiplying the unit price and quantity, the unit price shall prevail and total price

shall be corrected. If there is a discrepancy between the words and figures, the amount in

words shall prevail. If there is a mistake in addition/ totaling, that shall be corrected. If the

bidder does not accept the corrected amount of bid, his bid shall be rejected and his tender

security forfeited.

7.12 Incomplete and conditional tenders will not be entertained.

7.13 For this tender all updates/changes shall be communicated through email and also be

posted on EOBI website.

7.14 In case of any dispute between the two parties of any matter arising out of after signing

the contract agreement, the case shall be referred to the Chairman EOBI whose decision shall

be final and binding on both parties.

7.15 Bids submitted via email or fax will not be entertained.

7.16 Bidders indemnify EOBI against all third party claims of infringement of patent trade

mark, industrial design rights arising from use of the goods/services of any part thereof in

Pakistan.

7.17 The selected bidder shall nominate a team for the project. The team members would be

scrutinized by EOBI and only after approval of EOBI a team member shall be allowed to

work in the project team.

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8. TERMINATION OF CONTRACT

8.1 EOBI reserves the right to cancel an issued work order provided that bidder has not responded within 15 days with a letter of Intent.

8.2 After award of work order, if, during the course of project, bidder is found to have concealed and/or manipulated information to get the contract, the contract may be cancelled and notice of damages be served to the bidder.

8.3 As per PPRA rules, such bidder may also be reported for inclusion in “black listed” companies in PPRA record.

8.4 EOBI is gearing up for building in-house human resource capacity. EOBI and the vendor with mutual consent may terminate contract before schedule after giving one month notice in advance. In case of termination due to transferring the work to EOBI’s employees, the vendor shall amicably train and transfer the details without claiming any cost EOBI.

8.5 After expiry of contract period, a proper closure certificate shall be submitted by the successful bidder.

8.6 Contract, with mutual consent, can be extended on the same terms and conditions as agreed to by both the parties in the previous contract.

8.7 EOBI may decide to terminate the contract after serving a month’s notice if the services provided are deemed as unsatisfactory or EOBI’s internal resources are equipped enough to take over the development and maintenance of IT systems.

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Annex- I: Bid Form

Name of Bidder (Complete business name): ______________________________

Business Address: ____________________________________________________

Contact Information:

Contact Person: ______________________________________________

Cell No: __________________________ Land Line No: ________________________

Email: _______________________________________________

Eligibility Criteria

S. No. Criteria Fulfils Criteria (Yes/No)

1 Network of 500 or more branches

2 Network of 300 or more ATMs

3 Profit on Contribution Collection Account @ Discount Rate minus 150 points

4 Member of On-Link community

5 Long-term rating of A+ as of December 2013

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Annex- II: Financial Information Form

Transaction Cost (per disbursement / contribution collection)

Rs. ____________________________

In words (_______________________________________________________)

Please note that transaction cist shall be a fixed cost irrespective of the amounts of pension disbursed and/or contribution collected

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Annex-III: SPECIMEN COVER LETTER FOR BIDS

Reference No. EOBI/IT/ /2014 Dated: _________ Name of Contract: EOBI Applications Support Services, at Head Office, Karachi The DG (HR&GAD) EOBI Head Office, 190/B/1, Block-2, PECHS, Karachi. Dear Sir: 1. Having examined the RFP Documents including Instructions to bidders, eligibility criteria, specifications, for the execution of the above-named Contract, we, the undersigned, being a company doing business under the name and address ___________________________________________________________________________ and being duly registered under the laws of Pakistan hereby offer to execute and complete such contract and remedy any defects therein in conformity with the said documents including Addenda thereto with prices mentioned in the Financial Proposal (in figures and words) or such other sum as may be ascertained in accordance with the said documents. 2. We understand that all the Schedules attached hereto form part of this Bid. 3. As security for due performance of the undertakings and obligations of this Bid, we submit herewith a Bid Bond referred to in this document, drawn in favor of or made payable to Employees’ Old-Age Benefits Institution, Head Office, Karachi and valid for a period of 180 days. 4. We undertake, if our bid is accepted, to complete the whole of the work comprised in the above-named Contact within the time stated in Implementation and Payment Schedule. 5. We agree to abide by this bid for the period of 120 days beyond the date of opening of the Financial Proposal, and it shall remain binding upon us and may be accepted at any time before the expiration of this period. 6. Unless and until a formal Contract Agreement with SLA included is signed, this bid, together with your acceptance thereof, shall constitute a binding contract between us. 7. We undertake, if our bid is accepted, to execute the Performance Bond. 8. We understand that you are not bound to accept the lowest or any bid you may receive. 9. We do hereby declare that this Bid is made without any collusion, comparison of figures or arrangement with any other person or persons making a Bid for the above-named Contract. 10. We Confirm, if our Bid is accepted, that all partners of the joint venture (in case of joint venture) shall be liable jointly and severely for the execution of the Contract and the composition or the constitution of the joint venture shall not be alternate without the prior consent of the EOBI.

Dated this Of 2014

signature In the capacity of

Authorized to sign Bid on behalf of

(name of Bidder in Block Capitals)

Address

Witness 1 Name:

Address:

Witness 2 Name:

Address:

Banking Services - eobi.gov.pk

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