RHQ.LP.CONTRACT

Dear Madam/Sir,

October 11, 2013

Sub: Tender for manal"{inl"{the marketinl"{ activity for BPCL lovaltv prOl"{rams.

BPCLhas two loyalty programs supporting its marketing activities. PetroBonus - targeted at theindividual customer & SmartFleet - building relationships with fleet owners respectively.

These programs have completed a decade in existence and have formed a strong base ofmembers. The volumes transacted through the programs are impressive. Both these program

cover approximately 18% of the normal volumes traded by BPCL. 3.5 lac members in the

'PetroBonus' program & close to 80000 members in the 'SmartFleet' program form the member

base in the program.

Relationship building with members is an onerous task and that too with such large numbers.

These call for proper database management and account management services, to ensure that

proper service can be rendered to the members. This apart members need to be engaged andclosely associated with the program as well.

BPCL seeks the services of a 'competent' agency to manage such activities as listed below in

brief and elaborated in detail (Annexure I). Please understand the scope of work and quote yourbest rates.

1. Scope of work:

Considering the above, a brief scope of work covered in this tender would inter-alia include:-

• Data Base Management: Managing the database for the active members of PetroBonus

Program on a secured server, basis which all marketing & communication activitieswould be done.

• Account Servicing: Broadly would require the dedicated resource from the agency to co­

ordinate marketing activities of both the programs concerning the website

management, Promotion & campaign management, Partnership management.• Customer Service: Managing customer service through a call centre to attend to the

email and postal queries on the PetroBonus program.

• Promotions and campaign: Designing, executing and tracking promotions for both

'PetroBonus' & 'SmartFleet' programs.

• Mailing and fulfillment: Fulfillment of all the communications such as statement,communications, festive greetings, through print, e-mail and SMS.

All the activities shall be carried out in close co-ordination with the BPCLteam. Needless to

mention that the agency will strictly adhere to the timelines provided for the activities as agreed

upon for each work. The agency will also ensure to produce quality output.

A detailed scope of work is attached as Annexure I to assist and bringing in clarity to the entire

scope that would facilitate proper quote from the agency. SLAwill be drawn up basis this scopeof work post award of work.

2. Submission of Bids:

The response to the tender will be in two parts and submitted in two separate envelopesmarked 'Technical -Bid' & 'Commercial- Bid' separately. Thereafter they will be enclosed in

another envelope marked the reference to the Tender and submitted on or before the due dateoutlined herein. You are supposed to use the envelopes provided with tender document forsubmission of the bids. DD for EMD should be enclosed with the Technical bid.

3. PRE-BIDConference

A pre-bid conference to resolve all doubts and bring in common understanding among thebidders will be arranged and suitable date will be informed you soon. All agencies are requested

to ensure their representatives are present for the 'Pre-Bid' meet on 17th October 2013 at ourMaker Tower office in Mumbai with authorization letter on your letter head confirming your

participation in the Pre-Bid conference.

4. Tender response process:

You are required to participate in a two part Techno commercial bid.e-

We seek a Two part Bid from the agencies Technical BID and Commercial BID in 2 Separatesealed envelopes'as detailed below.

a) Technical BID of the Tender:

Please submit relevant Documents on

• Capabilities of the agency to support BPCL's Loyalty program inline with BPCL'sScope of work .

• Organizational Profile and credentials.

The agency would require citing names of accounts serviced by them either in the present,or in the past, which covers all parameters outlined above, which the agency should have

experience in executing. This description will be used as reference and explaining their

capability.

The criterion of Technical evaluation would be as detailed in Annexure II.

You need to make a presentation to the BPCl committee on above and also on BusinessCase attached as Annexure III. Please note that the time given for making the presentationshould not be more than one hour.

b) Commercial BID of the Tender:

The agency should submit their quotes for executing all the above activities for both the

loyalty program of BPCL.The quotes for this tender are broken in two parts.

r

1. Management fees paid monthly should be quoted as per Annexure IV.

2. Call of work (as described in Annexure I) - Rates for such call of works will be based onSchedule of Rates (SOR). Annexure V in the predesigned format captures the SOR.Items listed here will be used for such work to be executed in the program.

All quotes should be given exclusive of taxes alongwith details of all applicable taxes. Notquoting for any line item will disqualify your participation from the tender.

Commercial bid would be opened only for the agencies shortlisted in the Technical evaluation.

5. Evaluation of the Tender:

The selection process will constitute short listing of agencies/ agency basis the 'Technical Bids'submitted and evaluations of the agencies presentation by a committee.

A committee would shortlist the parties for this selection on an approved criterion on select

parameters. The commercial Bid would be opened only for shortlisted parties.

Primarily the committee would assess the agencies experience under the parameters namelyflData Base Management, Account Servicing, Customer Service, Promotions and Campaigns,

Mailing & Fulfillment, as described in Annexure I.

The agency would re~quire citing names of accounts serviced by them either in the present or in

the past which covers all parameters outlined above, which the agency should have experiencein executing. This description will be used as reference and explaining their capability.

6. Billing:

The estimates for itemized work shall be submitted in advance for all types of work based on the

final agreed rates. However for creative jobs, only the final approval of the creative shallconstrue approval of the work.

A separate SLAwill be drawn and signed to ensure and adhere to commitment levels to qualityand time of delivery.

Bills will be raised and submitted by the agency separately for two accounts

a. Management fee bills at the end of the monthb. 'Call of Work' bills on completion of the job.

Management fee bills for the previous month will be raised by the first week of the subsequentmonth by the agency and submitted for clearance. Bills submitted will include all supportingdocuments as required. Absence of 'supportings' will render the bill as disqualified for payment.

Such supporting submitted alongwith claimed bills, will however be scrutinized prior to making

payments.

7. Tenure:

The tenure of appointment of the agency would be initially for a period of two years from thedate of issue of letter to commence the work (Letter of Award) . BPCLmay at its own discretion,

call for extending the contract for a further period of one year at the same terms and conditions.

8. EMD - Earnest Monev Deposit:

a) The agency should submit an EMD (Earnest Money Deposit) for an amount of Rs.1Lakhin the form of a Demand Draft (DD)/ Banker's cheque along with their bids payable toBharat Petroleum Corporation Limited at Mumbai. In the absence of the EMD, the bidswill be considered invalid and treated as rejected.

b) No interest will be paid on the EMD collected.

9. Security Deposit:

a) The agency awarded the work will require to furnish a Security Deposit 'equivalent toRs.1 Lakh' in the form of a DD (Demand Draft)/ Bank Guarantee. The Demand Draft is to

be drawn in favor of Bharat Petroleum Corporation Limited, payable at Mumbai. BankGuarantee should be issued as per the Draft provided in General Conditions of the

Contract (GCe) of tender (page no. 37). The said Security Deposit will not attract anyinterest for the period of contract.

b) The agency will arrange to submit the DD / Bank guarantee within 7 days of the demandfor the Security Deposit put forth, basis which the offer letter would be issued. In the

event of-the agency failing to submit the Security Deposit within the stipulated 7 daysperiod, their bid would be considered invalid. The agency could also opt for convertingtheir EMD to security deposit.

c) The Bank Guarantee in the form of Security Deposit would be executed in the event offailure of the agency to fulfill the terms of the contract.

d) The Security Deposit collected would be returned within 30 days after the successful

completion of the tenure of the contract, and after a formal request for the release ismade by the agency in consideration.

e) In the event of an extension of the period of the contract, the period of the security

deposit will be considered to be extended till the valid period of contract. In the case ofa Bank Guarantee issued by the successful bidder, a fresh bank guarantee will be drawn

and issued by him/ in the case of DD being submitted earlier, the same will be retainedtill the extended period.

10. Termination:

BPCL reserves the right to foreclose the agreement of the contract with the successful bidder

without assigning any reasons thereof. However BPCLwill provide a 90 days' notice period priorto such foreclosure and the same period will be applicable for an agency wishes to foreclose thecontract.

11. Confidentiality:

Agency shall undertake to maintain complete confidentiality of fulfilling the above duties.Further, they shall also undertake that their directors, officers arid employees shall take

necessary steps to comply with the above restrictions and to use such methods and apply suchdegree of care with regard to 'Confidential Information', as would be used or applied to protectand avoid disclosure of their own Confidential Information. This in all will require signing off a

"Non Disclosure Agreement" and any breach of this clause will be considered a breach ofagreement and liable for termination of the contract

12. Rate Quotation:

The agency should submit their quotes for executing all the above activities for both the loyalty

program of BPCL strictly in accordance to the 'Price Bid' format enclosed with the Tender',Quotes for this tender are broken in two parts.

1. Management fees paid monthly should be quoted as per Annexure IV.2. Call of work (as described in Annexure I) - Rates for such call of works will be based on

Schedule Of Rates. Annexure V in the predesigned format captures the SOR, Items listedhere will be used for such work to be executed in the program.

All quotes should be given exclusive of all taxes. Taxes as applicable need to be specified clearly

in the quotes .•..

Annexures VI & VII are the General Conditions of Contract (GCe) and Integrity Pact (IP)

respectively which are to be submitted alongwith your bids. Please ensure to sign all the pagesof tender documents (including annexures) while submitting the bids.

Your quotes should reach us in the sealed envelope provided along with the Tender documenton or before 28th October 2013 latest by 15:00 hrs. addressed to:

Ch. Manager Loyalty Programs,Bharat Petroleum Corporation LimitedlthFloor, EWing, Maker Towers,Cuffe Parade

Mumbai -400005

Thanking you,

Yours faithfully,For Bharat Petroleum Corporation Limited

. ~A"'~~~AlJ!R'al:5h De b

Ch.Manager, Loyalty Programs