Tenders
Performance Linked Retail Management and Procurement Services for duty free operations at CIAL

 NOTICE INVITING TENDER

Introduction

CIAL is the airport operator and owner of Cochin International Airport located in central Kerala, India.  Cochin International Airport is the first airport built under Public Private Participation (PPP model) in India and commenced it’s operation from 1999. We are also the first airport in the world to fully run on solar power.   Cochin International Airport has achieved a total of 9.6 million passenger movement during 2017 out of which 4.99 million are international and 4.61 million are domestic passengers. International passengers are mainly Non-Resident Keralites/Indians working/living abroad visiting their family, tourists etc.

YEAR

PASSENGER MOVEMENT

INTERNATIONAL SECTOR

GROWTH % - YEAR on YEAR

2010-11

2359937

5.71 %

2011-12

2588032

9.67 %

2012-13

2934017

13.37 %

2013-14

3271755

11.51 %

2014-15

3745043

14.47 %

2015-16

4641127

23.93 %

2016-17

4995168

7.65%

The new international terminal, of CIAL, Terminal 3 (T3), has a peak hour capacity of around 4,000 passengers and 1.5 million sq.ft of terminal area. The total area allotted for Duty Free Business in T3 is 33000 sq.ft designed for providing a global shopping experience.

CIAL’s duty free operations commenced in 2002. From a very humble beginning during 2002-03, the duty free business has rapidly grown to such an extent that it is the major driver of growth and revenue for the company. For the FY 2016-17, duty free has significantly contributed to the total revenue of CIAL.  In 2013, CIAL constructed a state-of-art warehouse (approximately 4800 sqm) with required office area in the Airport premises to support its duty free operations. 

CIAL as part of its business strategy, during 2016, incorporated a wholly owned public limited subsidiary company, “CIAL Dutyfree and Retail Services Limited” ( CDRSL) under Companies Act 2013, with the main object of carrying out the business of Duty Free and Retail operations at Cochin International Airport.  CIAL subsequently hived off its duty free business and entrusted the same to CDRSL with effect from 01st June 2016. 

 CDRSL, as part of its gesture to take duty free business to new heights, intends to identify a reputed Duty Free operator for providing Performance Linked Retail Management and Procurement Services for its duty free operations at designated Locations of Terminal 3, Cochin International Airport, and has decided to carry out the competitive bidding process for selection of a Bidder to whom the contract may be awarded. Brief particulars of the Tender/ Request For Proposal (“RFP”) are as follows.

  Tentative Schedule:

RFP Particulars

Remarks

Date of release of tender 

01st  February 2018 to 15th February 2018  

Cost of Tender document           

INR 10,000/- (Indian Rupees Ten Thousand only ) Inclusive of  GST

Contract Term

10 Years.   

Pre-bid meeting

20th February 2018 at 11.00 hrs at Cochin International Airport

Bid submission (Technical and Financial ) 

On or before 3rd March 2018 at 10.00 hrs  (IST)

 

Earnest Money Deposit

INR. 2,000,000  (Indian Rupees Two million only )

Technical Bid  opening

3rd March 2018 at 10.30 hrs. (IST)      

Financial Bid  opening

3rd March 2018 at 15.00 hrs. (IST)                      

Interest Free Security Deposit

INR 200,000,000 (Indian Rupees  Two Hundred million only) as Interest Free cash deposit

Services of the Selected Bidder

The Selected Bidder to provide two types of Performance Linked services to CDRSL and quote their Service Charges accordingly in the financial proposal. The two types of services are given below.

1.    Performance Linked Retail Management Services.

2.    Performance Linked Procurement Services

The obligations of Selected Bidder with regard to above services are specified in this RFP. The Selected Bidder has to execute separate Agreements for Retail Management services and Procurement services.

Service Charges

a.      The Service Charges payable by CDRSL shall be a comprehensive fee for the services rendered by the Selected Bidder for the (1) Retail Management Services of the Duty Free Shop and (2) the procurement services for the Duty Free operations in terms of the Agreement so granted to the Selected Bidder.

b.      CDRSL to release only 80% of Service Charges payable on a monthly basis and the balance 20% on a quarterly basis on the satisfactory completion of the performance criteria, at the end of each quarter.  

c.      The Service Charges will be inclusive of all applicable taxes including GST

Proposed Selection Process

 In order to identify the right agency for providing management and procurement services, the proposal is evaluated through a two bid system consisting of Technical bid and Financial bid.  The Financial bid of such Bidders whose Technical bid has been found to be not in compliance with the requirements of RFP will be rejected.  Once both Technical bid and Financial bid are found in compliance with RFP, the same will be evaluated based on the Techno Commercial Offer (TCO) score.  The points allocated for each criterion of Technical and Commercial aspects and formulae of calculation of Techno Commercial Offer (TCO) score are detailed in the RFP Selection of successful bidder is made based on the Techno Commercial Offer (TCO) score obtained by each bidder. The Bidder with the highest TCO Score shall be declared as the Selected Bidder.

 Eligibility Criteria:

 The Bidder may be a single entity or a group of entities (the “Consortium”), coming together to implement the Contract.

 Technical Capacity: For demonstrating technical capacity and experience ("Technical Capacity”) the Bidder (in the case of Consortium, the Lead Member) and/or its Associate shall satisfy each of the following criteria, as on the date of issue of RFP:-

 (i)  The Bidder (or its Associates), shall have an operating experience (India and / or Abroad) of at least five (5) continuous years in Duty-Free Business, as on the Application Due Date

 (ii)   The Bidder (or its Associates), shall have proven operational experience in the duty free core category business operation (Liquor, Perfumes & Cosmetics,  Confectionery and Tobacco) in minimum 3 International Airports (India and/or abroad), out of which two (2) airports should have handled at least five (5) million passengers in any year during the last 3 financial years.

(iii)  There is no pending, active, or previous legal action that prevents the applicant from submitting the Bid, executing the Agreement or fulfilling the conditions of the Contract.

(iv)       The successful bidder should have the capacity to provide adequate number of brands as may be decided by CDRSL.

 Financial Capacity :   The Bidder (or its Associates), claiming the experience in Duty-Free Business, shall have a turnover of not less than USD 100 million in any of the three preceding financial years from the business of operating Duty-Free business in India and / or abroad.Sealed Tenders are invited on behalf of Managing Director - CDRSL, from reputed Duty Free operators for the PerformanceLinkedRetailManagementandProcurementServicesContract for the Duty Free shop operated at Terminal 3 of Cochin International Airport. CIAL/CDRSL also welcome all potential bidders to visit our location and facilities at the new International Airport Terminal (T3) in this regard. 

 Contact details.

 

Mr. Jacob T Abraham

Deputy General Manager (Retail Business)

Cochin International Airport Ltd.

Mobile: 09539701535

Telephone: +91 (0)484 2610275

Email: jacob@cial.aero

  Cochin, Kerala
  +91 484 2610115
  +91 484 2610012
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