REQUEST FOR PROPOSAL FOR EXTENSION OF SAP …

RFP for Extension of SAP implementation: Treasury & Project Finance Operations

Confidential NHB/ITD/02/2007 Page 1

REQUEST FOR PROPOSAL FOR

EXTENSION OF SAP IMPLEMENTATION TREASURY & PROJECT FINANCE OPERATIONS

RFP No NHB/ITD/02/2007

Version No. 1.0.1

Date of Issue 12th April, 2007

Last Date of Submission 23rd April, 2007

Place of Submission National Housing Bank, IT Department, 3rd Floor, Core 5-A, India Habitat Centre, Lodhi Road, New Delhi 110003

Confidential All information about internal systems, processes, functions of the Bank received by the bidder are confidential. It is the responsibility of the bidder to implement all necessary security measures to ensure that no information relating to this document is released to any unauthorised parties.



Contents 1 Background information 4

1.1 National Housing Bank 4 1.2 Existing SAP Implementation 4 1.3 Need for Extension 4

2 Current Project 5 2.1 Scope of Work 5 2.2 Resources for the Project 5 2.3 Project Management Organization 5 2.4 Project Time Schedule and Milestones 5 2.5 Project Locations 6 2.6 Logistics 6 2.7 Technical Guidelines 6

2.7.1 Change Requests Management...........................................................6 2.7.2 Problem Escalation ...............................................................................6 2.7.3 Quality and Inspections .......................................................................6

3 Deliverables 7 3.1 Specifications and Design 7 3.2 Installation and Customization of the Solutions 7 3.3 Training programs 7 3.4 Managing Go-live Event 8 3.5 Post Go-live Support 8 3.6 Documentation 8

4 Bidding Process 9 4.1 Invitation for Bids 9 4.2 Minimum Experience Required 9 4.3 Earnest Money 9 4.4 Instructions to Bidders 9

4.4.1 Submission of offers .............................................................................9 4.4.2 Price Quotation....................................................................................10 4.4.3 Acceptance of Offer ............................................................................10 4.5 Evaluation Criteria for the Bidding Process 11

4.5.1 Technical Bids ......................................................................................11 4.5.2 Financial Bid ........................................................................................11 4.5.3 Final Processing...................................................................................11



5 Terms and Conditions of Project 13 5.1 General Conditions of Contract 13

5.1.1 Force Majeure ......................................................................................13 5.2 Special Conditions of Contract 13

5.2.1 Acceptance of offer .............................................................................13 5.2.2 Changes and enhancements in the scope of work .........................14 5.2.3 Role of NHB personnel ......................................................................14 5.2.4 Allowances and compensation .........................................................14 5.2.5 Inspection and Auditing ....................................................................14 5.3 Payment Terms 15

5.3.1 At project milestones ..........................................................................15 5.3.2 Delayed milestones and Contract Termination..............................15

6 Quotation Formats 18 6.1 Technical Bid 18

6.1.1 Vendor Identification Details ............................................................18 6.1.2 Technical Quotation............................................................................18 6.2 Financial Bid 19

6.2.1 Vendor Identification Details ............................................................19 6.2.2 Price Quotation....................................................................................20

7 Annexure 1 – Treasury Operations 21 8 Annexure 2 – Project Finance Operations 26



1 BACKGROUND INFORMATION

1.1 NATIONAL HOUSING BANK

The National Housing Bank (NHB) functions as the regulator of housing finance companies, provider of finance to housing finance institutions and housing project developers, and as promoter for housing finance sector. NHB is a very lean organisation with total staff strength of less than 100. At present it does not have any retail activities. NHB has its Head Office at Delhi and two branch offices at Mumbai and Hyderabad.

1.2 EXISTING SAP IMPLEMENTATION

NHB has implemented SAP for General Ledger, Borrowing Operations, HRD and payroll in 2005. It intends to extend the existing SAP implementation to include investment operations and project finance operations.

1.3 NEED FOR EXTENSION

The present requirement of extension of SAP to treasury and project finance functions is for integration of these functions with General Ledger to enable quick generation of the final accounts and integrated MIS.



2 CURRENT PROJECT 2.1 SCOPE OF WORK

The current project is for extension of SAP implementation in NHB to include Treasury Operations and Project Finance Operations. The details of activities and under the two operations and the list of processes supporting the activities are given in Annexure I and II respectively. The implementations for the two operations are to be done in parallel through independent teams with optimum use of resources without affecting the pace of either implementation.

2.2 RESOURCES FOR THE PROJECT

The existing SAP implementation in NHB is of SAP R/3 Enterprise Version 4.7 with separate Development, Quality and Testing, and Production systems connected through a Transport Management System. The modules implemented are HR, and FI/CO including CFM. The existing setup will be used as the base for the current project. SAP Loans management module may be considered additionally for project finance operations. Any augmentation to the hardware / software resources considered necessary for the project will be carried out by the Bank separately. These resources will be allocated to the project as per schedule of the project.

2.3 PROJECT MANAGEMENT ORGANIZATION

There will be a Steering Committee to monitor and supervise the project. The Steering committee will have nominated members from NHB top management. At the operations level a core team will be nominated having a Project Manager along with separate members from Treasury Operations and Project Finance Operations. The vendors will describe the project organisation in the bids. It is expected to have a senior functionary heading the project team supported by separate coordinators for Treasury Operations and Project Finance Operations.

2.4 PROJECT TIME SCHEDULE AND MILESTONES

The Project milestones will be as follows. The vendor will submit a project schedule defining dates for the milestones.

Milestone Type Milestone

1. Payment milestone Acceptance of the Order and Signing of Contract

2. Non payment milestone Completion of Study / Finalization of AS-IS Process Document



Milestone Type Milestone

3. Payment milestone Finalization of the Business Process Blueprint

4. Non payment milestone Completion of Core Team Training

5. Payment milestone Completion of Integration Testing

6. Payment milestone Completion of End User Training

7. Payment milestone Full Data upload and Commissioning [Go Live]

8. Payment milestone Completion of Post Go Live Support

The target go-live date for both the operations is 15th June 2007.

2.5 PROJECT LOCATIONS

The administrative location of the project is the NHB Head Office, New Delhi. 2.6 LOGISTICS

During the project period, reasonable size furnished office space will be provided at the NHB Head Office to the project team from the vendor for interaction with the NHB teams. The Bank will not provide any assistance for travel or stay for the vendor’s personnel, whether local or inter-city.

2.7 TECHNICAL GUIDELINES

The project must adhere to the technical guidelines given below. 2.7.1 CHANGE REQUESTS MANAGEMENT

The methodology to manage changes in scope and schedule during the course of the project must be described clearly in the bid. 2.7.2 PROBLEM ESCALATION

Problem escalation mechanism should be detailed in your bid. The escalation should cover each level of the organization up to the level of the CEO of the organization. 2.7.3 QUALITY AND INSPECTIONS

The bid must define a quality plan to implement quality control for the project. The plan may include inspections to be carried out by NHB with the objective of catching differences in the perception between NHB and the vendor at the earliest.



3 DELIVERABLES

The project deliverables are linked to the project milestones and are described in the following paragraphs.

3.1 SPECIFICATIONS AND DESIGN

The first set of deliverables are linked to functional and security specifications of the project. The consultants will study the business processes and furnish the following documents

a. Functional Specifications - AS-IS Document b. Functional Specifications - Business Process Blueprint Document. c. Security & Control Specifications

The security and controls incorporated in the implementation will be documented in detail. Detailed monitoring and verification requirements during production must be clearly specified.

3.2 INSTALLATION AND CUSTOMIZATION OF THE SOLUTIONS

The second set of deliverables is linked to realization of the Business Blue Print. This will include installation and commissioning of the SAP modules, carrying out the customization, and achieving specific developments for NHB. The consultants will also furnish the following documents

a. Customization Document b. Directory of all Developments c. Complete Test Plan for the system

Customization / Development should be done in a manner that it gives a reasonable assurance of upward compatibility with future versions of the platform. The development / customization should be as per a defined quality assurance program throughout the project period.

All the development must meet the requirements for security, performance, ease of use for operations, administration and management. All the applications developed / customized will be subjected to application audit.

3.3 TRAINING PROGRAMS

The vendor will provide detailed training to NHB core team. The content of the training will include customization details and development specifications. The following document will be provided: -

a. Core Team Training Document

The Core Team will provide training to end users with the guidance of the vendor. The vendor will provide the following documents for this purpose: -

a. End User Training Document b. User’s Manuals c. Administrator’s Manual



3.4 MANAGING GO-LIVE EVENT

The vendor will provide a detailed list of specific activities for go live event. The project plan submitted by the vendor must ensure that the activities are completed before the event.

All training programs must be completed before the go live event. 3.5 POST GO-LIVE SUPPORT

The vendor will provide onsite support for at least one month after go live stage to thrash out any teething problems. All the documents will also be converted to final release version during this stage.

3.6 DOCUMENTATION

All documents will be handed over in three copies, legible, neatly and robustly bound on A-4 size, good-quality paper. Soft copies of the document in MS Word format will also be submitted in CDs along with the hard copies.

All documents will be in plain English or Hindi.



4 BIDDING PROCESS 4.1 INVITATION FOR BIDS

The bids would comprise of two components Technical bid and Financial bid. The overall evaluation of the bid would be based on both technical and financial bids. The vendor will be responsible for the completeness of the quote it submits. 4.2 MINIMUM EXPERIENCE REQUIRED

Only those vendors will be considered who have completed at least two SAP - CFM / CML implementation in a corporate, bank or financial institution in India. 4.3 EARNEST MONEY

The earnest money for the bid would be Rs.50,000/ to be paid through a bank draft favouring ‘National Housing Bank’ payable at New Delhi. Bids not accompanied by the earnest money will not be considered and rejected summarily. 4.4 INSTRUCTIONS TO BIDDERS 4.4.1 SUBMISSION OF OFFERS

The offers should be submitted as per format described in Section 6 of this document. The complete bid will comprise of a sealed outer cover containing the forwarding letter and Earnest Money Draft and two sealed covers clearly marked ‘Technical Quotation’ and ‘Financial Quotation’.

The bids should be addressed to: -

The Deputy General Manager Information Technology Department National Housing Bank 3rd Floor Core 5 – A, India Habitat Centre Lodhi Road New Delhi – 110 003

All the covers must also have the following identification information super scribed on them: -

RFP number NHB/ITD/02/2007

Name of work Extension of SAP implementation Treasury & Project Finance Operations

Last Date & Time of submission 15:00 hrs 23rd April, 2007

Address & Contact details of the Bidder (Furnish address and contact details)

Name and Signature of the Authorised representative of the Bidder

(Authorized representative’s signature)



Sealed offer must reach the above mentioned address before the last date and time of submission specified. Late tenders are liable to be rejected outright.

Apart from the original quotation to be submitted in the manner detailed above, no other copies should be sent to the National Housing Bank and any such offers will not be valid quotations. Offers sent through telegram / telex/ fax, and offers not submitted in the standard formats given in the tender document shall be summarily rejected.

Bidders must keep their offer open for a minimum period of 30 days from the last date of submission of tender, within which date the bidders cannot withdraw their offer, subject, however, to the period being extended further, if required, by mutual agreement from time to time.

The authorized representative of the bidder should sign and stamp the bottom of each page of the tender document, including all enclosures.

Bidders must ensure that the conditions laid down for submission of the offers are completely and correctly fulfilled. Tenders that are not complete as stipulated above may be summarily rejected. All formats should be filled up without leaving any column unfilled.

Incorrect or misleading information: If the bidder deliberately gives incorrect or misleading information in his tender or wrongfully creates circumstances for the acceptance of his tender, the NHB reserves the right to reject such tender at any stage.

All explanatory remarks and clarifications, which the bidder may desire to make, must be, incorporated in the offer form, failing which the remarks / clarifications shall be ignored and tender dealt with as it stands.

4.4.2 PRICE QUOTATION

The bidders should quote their most competitive prices. The prices quoted shall be firm throughout the period of the validity of the offer and subsequently during the currency of the contract and shall not be subject to any variation. The bidder shall indicate break up of rates as specified in the quotation format. The prices quoted shall include right of patent, registered design or trademark, if any. The act of submission of the bid by the bidder shall be understood to mean that the bidder undertakes to indemnify the Bank against all claims in respect of patents, registered designs, trademarks etc. Payment milestones and payment terms shall be strictly as per this document. No change will be permitted. 4.4.3 ACCEPTANCE OF OFFER

The Bank reserves the right to accept any bid under this tender in full or in part, or to reject any bid or all bids without assigning any reason.



4.5 EVALUATION CRITERIA FOR THE BIDDING PROCESS

The bids received from the firms would be evaluated on the basis of their technical and financial competencies. The technical competencies would be evaluated first and only the firms having the requisite qualifying technical score would be eligible for the financial bid round. The composite score of the technical and financial competencies would be considered as the final score for the firm and firm with highest composite score would be considered for the project. 4.5.1 TECHNICAL BIDS

Criteria and Point system for the evaluation of the Technical bids are:

Criteria Points Assigned

i.) Specific experience of the consulting vendor for SAP implementation relevant to this assignment

30

ii.) Team qualifications and competence for the assignment* a) Team Leader 10 b) Domain Expert(s) 10 c) Others 10

Total points for criterion (ii) 30 iii.) Project Understanding, Methodology and Plan

a) Understanding of the Project 10 b) Methodology 10 c) Clarity of plan & Presentation 10 b) Documentation & Training Program 10

Total points for criterion (iii) 40 Technical Score (Total score for the aforesaid criteria) 100

The minimum qualification score for the Technical Bid would be 70. There is also a minimum experience criterion as specified in section 4.2. 4.5.2 FINANCIAL BID

Only firms successfully qualifying the requisite criteria of the Technical Bid process would be considered eligible for the Financial Bid Round.

The evaluation of the Financial Bids would be as follows: ♦ The lowest bid will be assigned the maximum Financial Score of 100 points. ♦ The Financial Scores of the other Financial Bids will be computed relative to

the lowest evaluated Financial Bid. ♦ The Financial Score computing methodology is as follows:

Lowest BidBid under consideration

Bid under consideration

100 Price Financial Score =Price

×

4.5.3 FINAL PROCESSING

♦ Proposals would be ranked according to their Final Score arrived at by combining Technical and Financial Scores as follows:



Final Score = Technical Score T + Financial Score F× ×

(T - Weightage given to the Technical Bid, F - Weightage given to the Financial Bid, T + F = 1)

♦ Weightage for the bids are as follows:

I. Technical Bid T 50% II. Financial Bid F 50%

Total Weightage 100%

♦ The firm achieving the highest combined Technical and Financial Score will be invited for negotiations.

* The Bank reserves the right to revise the evaluation criteria, points and weightages.



5 TERMS AND CONDITIONS OF PROJECT The successful bidder will enter into a contract with the NHB. The salient conditions are as mentioned below. These conditions should be read along with the Instructions to bidders, scope and details of the service, and tender forms.

5.1 GENERAL CONDITIONS OF CONTRACT

Law Governing the Contract: The extant laws for the time being in force in the Republic of India on the subject including the amended Arbitration Act shall govern the contract. All disputes are subject to jurisdiction of Delhi High Court and its Subordinate Courts in Delhi only. Income Tax & Other Taxes: The vendor and all personnel employed by him shall pay such taxes as payable under statutory laws of India and the NHB will not accept any liability for the same. The vendor has to fulfill the legal formalities and obligations under the sale tax on Works Contract effective from December 1, 1999 as amended thereafter. NHB will deduct required percentage as TDS and TDS certificate will be issued to the vendor. 5.1.1 FORCE MAJEURE

If, at any time during the continuance of contract agreement, the performance in whole or in part by either party or any obligation under the agreement is prevented or delayed by reasons of any war, hostile acts of the enemy, civil commotion, sabotage, fire, floods, explosions, epidemics, guarantee restrictions issued by any Government or competent authority or acts of God (hereinafter referred to as eventualities) then provided notice of the happening of any such eventualities is given by either party to the other within fifteen days from the days of occurrence thereon, neither party shall, by reason of such eventualities be entitled to terminate this contract / agreement nor shall either party have any claim for damages against the other in respect of such non –performance or delay in performance. Performance of the contract agreement shall, however be resumed as soon as practicable after such eventuality has come to an end or ceased to exist, provided that, if the performance in whole or part of any obligation under the contract agreement is delayed by means of any such eventuality for a period exceeding six months, either party may at his option terminate the contract agreement provided further that in the event of such prevention or delay as aforesaid, then, instead of exercising the option of termination of contract, both parties may consult with each other with a view to agreeing between them the action mutually to be taken in order to minimize the effect of such prevention or delay and continue the operation of this contract agreement

5.2 SPECIAL CONDITIONS OF CONTRACT 5.2.1 ACCEPTANCE OF OFFER

A Letter of Intent may be placed before the formal Acceptance of Tender. In case a formal Acceptance of Tender follows a Letter of Intent, the work will be deemed to have started from the date of issue of the Letter of Intent.



The successful bidder shall be required to execute an agreement for executing the work according to the conditions of tender / contract, accepted rates, specifications, schedule of prices and time schedules. Such an agreement shall be executed with the National Housing Bank acting through the Project Coordinator. The cost of the stamp duty on the agreement shall be borne by the bidder. Further, the bidder would have to enter into a confidentiality agreement by signing a non disclosure agreement. 5.2.2 CHANGES AND ENHANCEMENTS IN THE SCOPE OF WORK

If during the execution of project, it is found that the NHB wants changes in the scope of work, then the vendor and the NHB may renegotiate the contract upon mutual agreement in writing. 5.2.3 ROLE OF NHB PERSONNEL

NHB shall have the option of associating its personnel with each stage of the work in all its phases. The vendor shall provide these personnel with all the necessary information and facilities to carry out their functions. But the fact that NHB Personnel are associated with the vendor’s Personnel in the contracted work shall not in any way reduce the vendor’s responsibilities under this contract in any manner. Final responsibility to satisfy NHB of the satisfactory completion of supplies rests with the vendor. 5.2.4 ALLOWANCES AND COMPENSATION

NHB shall not be responsible for providing accommodation to the vendor or to his representatives who will be visiting the various sites during the course of the project under this contract. However, working space, if available, may be provided on request. The NHB will pay no allowance or other compensation for the visits of the vendor or his representatives to NHB’s sites and for the time spent by them at NHB site, for performing work covered under this contract. Employees of vendor will in no way be the employees of the NHB. The vendor has to observe all the State & Central labor laws. Vendor will indemnify the NHB Administration for loss and damages payable to the workers of the vendor by order of any law-enforcing agency. Vendor shall indemnify the NHB for loss and damages suffered due to passing on of programmes / modules / information to any other person / Agency by his partner / Agent / Servant / any person working on his behalf. 5.2.5 INSPECTION AND AUDITING

NHB reserves the right to nominate a suitable inspecting / auditing agency to inspect / audit the application software supplied by the Vendor. In the course of inspection / audit, if any deficiencies / shortfalls are noticed, it shall be the responsibility of the Vendor to fix them to the satisfaction of the Project Coordinator. If for reasons to be specified by the inspecting authority or its nominee, any corrections or changes are found necessary, the vendor shall at his own cost carry out the corrections. The vendor however shall be entitled for extension of time to



complete the contract on account of such correction. 5.3 PAYMENT TERMS

5.3.1 AT PROJECT MILESTONES

The tentative payment schedule based on the project milestones described in section 2.4 is as follows: -

Milestone type Milestone

% of nominal contract charges payable

1. Payment milestone Advance on acceptance of the Order and signing of contract

10%

2. Non payment milestone Completion of Study / Finalisation of the AS-IS process document

3. Payment milestone Finalization of the Business Process Blueprint 10%

4. Non payment milestone Completion of Core Team Training

5. Payment milestone Completion of Integration Testing 20%

6. Payment milestone Completion of End User Training 20%

7. Payment milestone Full Data Upload and Commissioning [Go Live] 25%

8. Payment milestone Completion of Post Go Live Support 15%

Release of payments will be made after approval by the Steering Committee on completion of payment milestones. The vendor will be required to submit documents considered necessary for reaching the milestones. 5.3.2 DELAYED MILESTONES AND CONTRACT TERMINATION

Project delays for purposes of calculation of liquidated damages will be assessed at each payment milestone. The payment milestone and each of its preceding non-payment milestones must be completed within the specified schedule. In case of delays, a request for extension of milestone dates, explaining the reasons for delay, should be made to the NHB for its consideration, failing which the entire work is liable to be rejected and action is liable to be taken as stipulated in the conditions of the contract. Extension of time on NHB’s account: In the event of any failure or delay by the NHB to furnish to the Vendor data or other relevant particulars necessary for progressing with the project schedules or to give the necessary notice to commence the works or any other delay caused by the NHB due to any other cause whatsoever, then such failure or delay shall in no way affect or vitiate the contract or alter the character thereof or entitle the vendor to damages or compensation thereof but in any such



case the NHB may grant such extension or extensions of the completion date as may be considered reasonable. Failure and Termination: The time for completing the supplies & installation in terms of respective clauses of the special terms & conditions of contract shall be deemed to be of the essence of the contract. If the Vendor fails to complete all the activities against a payment milestone and all its preceding milestones within the scheduled time of completion, or as extended as specified in the contract, or at any time repudiates the contract before its completion, the NHB may without prejudice to its other rights take either of the two under mentioned courses of action.

• Recover from the vendor as agreed liquidated damages, and not by way of penalty, a sum equivalent to 0.5% (half percent) of the amount payable against such payment milestone which the vendor has failed to complete within the period fixed for completion in the works contract, or as extended by the NHB, for each week or part of a week during which the milestone is delayed, provided that the total amount of liquidated damages under this condition shall not exceed 10% of the amount payable.

• Cancel the contract or a portion thereof and if so desired purchase or authorize the purchase of the service / works not so completed or others of a similar description (where service / works exactly complying with particulars are not readily procurable, in the opinion of the NHB, which shall be final), at the risk and cost of the vendor.

Where action is taken under sub-clause above, the vendor shall be liable for any loss which the NHB may sustain on that account provided the purchase, or, if there is an agreement to purchase, such agreement is made within six months from the date of such failure and in case of repudiation of the contract before the expiry of the aforesaid period of completion, within six months from the date of cancellation of the contract. The vendor shall not be entitled to any gain on such purchase and the manner and method of such purchase shall be to the entire discretion of the NHB. It shall not be necessary for the NHB to serve a notice of such purchase on the vendor. Provided further that if the contract is terminated for any reason whatsoever, the payment due to the vendor shall be restricted to the amount payable for the payment milestones completed in all respects by him, including acceptance by the NHB, as specified in the payment schedule, subject to deduction of any amount on account of delays or other reasons specified in the contract. Matters finally determined by the NHB: All disputes and differences of any kind whatsoever arising out of or in connection with the contract, whether during the progress of the works or after their completion and whether before or after the determination of the contract, shall be referred by the vendor to the NHB and the NHB shall within a reasonable time after their presentation make and notify decisions thereon in writing. The decisions, directions and certificates with respect to any matter the decisions of which is specially provided for by these or other special conditions, given and made by the NHB, represented by the Project Coordinator, be referred hereinafter as “excepted matters” and shall be final and binding upon the



vendor and shall not be set aside on account of any infirmity, omission, delay, or error in proceedings, in or about the same or any other ground or for any other reasons and shall be without appeal.



6 QUOTATION FORMATS The Quotation Formats describe the structure in which the quotations are to be submitted. The bidder should fill up the tables with information asked for in each column. Where a separate document is expected, the bidder may attach it in the bid. The complete bid will comprise of Technical and Financial bids submitted in sealed packet. The Technical and Financial Bids would be processed separately. Hence, these bids are to be enclosed in separate sealed envelopes, clearly indicating their respective headings and then placed in the outer sealed packet.

6.1 TECHNICAL BID

The technical bid will comprise of the following: 6.1.1 VENDOR IDENTIFICATION DETAILS

Item Response to be filled in by bidder

1. Name of the vendor [Full name of the firm/company]

2. Main / Head / Corporate office

[Full address, telephone numbers, fax numbers, and email address of the primary office of the organization]

3. Name and designation of the CEO of the company

[Name, designation and full address of the Chief Executive Officer of the bidding organisation, including contact numbers and email address]

4. Dealing Office [i.e. the office dealing with this proposal]

[Full address, telephone and fax numbers, and email addresses of the office of the organisation interacting with NHB for this RFP]

5. Name and designation of the contact person dealing with this proposal

[Name, designation and full address of the contact person of the dealing office, including contact numbers and email address]

6. Validity of offer, minimum period of 30 days specified

[Validity of the offer in calendar days]

6.1.2 TECHNICAL QUOTATION


Consulting Vendor

1. Vendor’s profile and experience

[Describe your profile as a SAP Implementer and types of Project undertaken and completed. Separate Document Expected.]

2. References [Describe at least two CFM / CML Implementation Projects you have done which can be taken as Reference Projects. You may furnish details as permitted by agreements signed by you. However, it will be your responsibility that verification can be done by NHB. Separate Document Expected.]




3. Description of the Project Team

[Describe the structure of your tentative team, profile of probable members with exact experience relevant for the current project. Separate Document Expected.]

Project

4. Description of the Project Scope

[Describe your understanding of the project scope – Broadly what can be done and what can not be done. Separate Document Expected.]

5. Description of the Project Details

[Describe your methodology, project organization, project plan, in details the technology, architecture, products and solutions that would be used. Separate document expected.]

6. Description of Project Agreement

[Enclose a copy of the Master Project Agreement for a project like ours. Separate document expected.]

7. Description of the Security & Controls incorporated

[Detailed description of security and control features that are to be built into solutions. Separate document expected.]

8. Quality Plan [Proposed quality plan setting out for controlling quality at different stages of the project and a proposed inspection schedule should be described. (Refer to subsection 2.7.3). Separate document expected.].

9. Change Management Methodology

[The proposed change management system should be described (Refer to subsection 2.7.1). Separate document expected.]

10. Problem escalation mechanism

[Describe the problem escalation mechanism with the name, designation and contact details at each level up to the level of CEO (Refer to subsection 2.7.2). Separate document expected.].

11. Training [Describe training programs for core team and end users supported by sample training documents. Separate document expected.]

12. Documentation [Describe your system documentation supported by sample documentation/manual (Refer to section 4.5.2). Separate document expected.].

13. Requisite IT Infrastructure

[Describe the IT Infrastructure requirements for the project - details of the hardware, software, platform, connectivity requirements, etc. These resources will be provided by the Bank.]

6.2 FINANCIAL BID

The financial bid will comprise of the following: 6.2.1 VENDOR IDENTIFICATION DETAILS


1. Name of the vendor [Full name of the firm/company]




2. Main / Head / Corporate office

[Full address, telephone numbers, fax numbers, and email address of the primary office of the organization]

3. Name and designation of the CEO of the company

[Name, designation and full address of the Chief Executive Officer of the bidding organisation, including contact numbers and email address]

4. Dealing Office [i.e. the office dealing with this proposal]

[Full address, telephone and fax numbers, and email addresses of the office of the organisation interacting with NHB for this RFP]

5. Name and designation of the contact person dealing with this proposal

[Name, designation and full address of the contact person of the dealing office, including contact numbers and email address]

6. Validity of offer, minimum period of 30 days specified

[Validity of the offer in calendar days]

6.2.2 PRICE QUOTATION


(detailed component-wise price breakup expected) 1. Total Cost of the

Project [All inclusive price for the total project. Breakup for taxes and levies to be indicated clearly.]

2. Time and Material Rates

[Rates for consulting resources on person days / person months basis; Definitions of person days, person months and applicability of rates in various situations.]

Maintenance

3. Support charges after completion of go live support

[Please indicate rates for consulting resources on person days / person months basis; Definitions of person days, person months and applicability of rates in various situations.]

4. Maintenance charges [Please give the details of the charges (annual basis) for a servicing and maintenance of the system]

Annexure I



7 ANNEXURE 1 – TREASURY OPERATIONS GENERAL Treasury operations are carried out by coordinated actions of RMMD-Treasury Division [Front Office], EPD – Accounts Division [Back Office], DRMD [Mid Office] and Mumbai Office [Settlement Office]. The basic guidance for treasury operations is provided by the policies approved by the Board. On a daily basis, the monitoring and review of treasury operations is done and guidance provided by FMIC. This committee receives specific inputs for market movements, interest rate outlook, liquidity in the system, various benchmarks and exposures to the counterparties from Front, Mid and Back Offices for taking investment decisions. Periodic guidance is also provided by two other committees namely ALCO and RMC. ACTIVITIES The main activities in treasury operations are as follows: - A. Investment The generic investment activity comprises of following steps: - 1. Identifying the surplus/funds to be invested on daily basis. Analysis of

alternative investments / disinvestments. 2. Taking decisions about investment pattern – quantum, period, counterparty,

instrument, rate of return and other terms. The investment is carried out in the permitted instruments as contained in the Investment policy based on the decision of ALCO/FMIC. The permitted instruments include: -

Govt. of India dated Securities, Treasury Bills CBLO segment Rated Corporate Bonds as prescribed in the Investment Policy, Subordinated Debts Commercial Paper/Certificate of Deposit Mutual Funds, such as Liquid Funds, Income Funds, G-Sec Fund etc. Fixed Deposits with commercial banks, financial institutions Lending through reverse Repo Investment in Pass Through Certificates (PTC) of MBS issues. CBLO

3. The investment is done through deals as per the decision to invest surplus/funds by Dealer at HO. The Dealer’s decision is authorized by the treasurer. The deal making activity is also monitored by the mid office. The objective of the monitoring and authorizations is to ensure that there are no

Annexure I



policy violations in terms of exposure to counter-parties, brokers, size of investment, limits etc. [In case of deals in GOI dated Securities and treasury bills, the transaction details are also entered onto the PDO NDS/NDS OM systems.]

4. The back office prepares the vouchers and interacts with Accounts Department for their posting. The back-office maintains the accounting records and books and reconciles them with Accounts Department periodically.

5. Mumbai Office carries out physical settlement of the transactions, such as issuances of cheques/transacts through RTGS, issuance of purchase request in r/o mutual fund units, covering letter for investment in FDs, funding of various accounts. Mumbai office generates and receives Inter Office Transaction (IOT) advices to/from H.O. for further processing and recording. This office also prepares a daily cash flow statement based on the known inflows/outflows and sends it to the Treasurer for information.

B. Disinvestment Disinvestment activity is done in close coordination with the borrowing operations since the activities can substitute for each other. The basic steps in the disinvestment activity are as follows:- 1. Taking decision regarding disinvestment. This step is considered along with the

decision for borrowings in place of the latter as both the activities result in cash inflow.

2. Sale of investments and Borrowing is done by Dealer at HO in the following instruments:

GOI dated Securities, Treasury Bills CBLO Segment Corporate Bonds Subordinated Debts Commercial Paper/Certificate of Deposit Mutual Funds : Liquid Fund; Income Fund; G-Sec Fund etc. Repo Borrowing. CBLO

It is noted that for the following activities, the back office & Mumbai office initiates the action:-

Coupon received on G-Secs, Corporate Bonds etc Maturity of G-Secs, Bonds, Term Deposits Reversal of lending under reverse Repo transactions. Maturity proceeds of the fixed deposits/periodical interest received Redemption in Mutual Fund Units Maturity of Tier-II Bonds/interest received

3. Mumbai Office carries out physical settlement of the transactions. Mumbai office receives the cheque/transacts through RTGS, issuance of redemption request for

Annexure I



mutual fund units, issuance of letter for maturity of FDs etc. The settlement is done through Inter Office Transaction [IOT (Investment)] A/c.

4. The back office prepares the vouchers and interacts with Accounts Department for their posting. The back-office maintains the accounting records and books and reconciles them with Accounts Department periodically.

C. Payment of Brokerage and CCIL Charges Brokerage and CCIL charges in respect of deals during a month are paid during the first week of the next month. The activity is initiated by the back office. The basic steps are as flows: Payment of Brokerage 1. Receiving Broker notes in respect of brokered deals from the concerned Brokers. 2. Generation of report on brokerage is at the end of the month 3. Verifying report on brokerage at HO against the Broker notes received. 4. Processing for approval of payment 5. Advising Mumbai office to make payment to the concerned brokers.

Payment of CCIL Charges 1. Receiving report from CCIL on-line at the end of the month for payment. 2. Verifying report from CCIL at HO against the deal done through NDS. 3. Processing for approval of payment 4. Advising Mumbai office to make payment to CCIL.

D. Miscellaneous The Treasury operations generate control reports and MIS for top management. These activities are done by the mid office and back office Mid-Office functions 1. Generation of various reports by Mid office as prescribed under Investment and

Treasury Manual 2. Generation of data for the purpose of preparing ALM statement

Back Office function 1. Calculation of monthly / quarterly interest provisions in respect of Fixed

Deposits; Corporate Bonds; Govt. Securities and other interest bearing instruments.

2. Computation of yield pertaining to investment operations on quarterly, half yearly and annual basis.

Annexure I



3. Monthly MIS to Top Management on o/s Investment balance 4. Daily report on limits & outstanding report and forthcoming maturity report 5. Calculation of duration/modified duration security-wise / portfolio-wise Yield for each of the instruments is calculated on the basis of average holding during the defined period, income earned (with or without profit) during the said period. Yield statement indicates the opening balance, investment during the defined period, disinvestment or sale during the defined period; closing balance; average holding (on daily product basis); income (with or without profit), yield for the defined period, yield for the corresponding period in the previous year etc.

PROCESSES The basic processes for treasury operations covering the four basic types of activities described above are as follows: - Process #01 Investment in Government Securities including Repo Transactions and Treasury Bills Process #02 Investment in Bonds issued FIs/PSUs Process #03 Investment in Corporate Bonds, Zero Coupon Bonds, Debentures and Preference Shares Process #04 Investment in Subordinated Debt Instruments Process #05 Investment in Commercial Paper, Certificate of Deposits Process #06 Investment in Mutual Fund Process #07 Investment in Mortgage Backed Securities (MBS) / Asset Backed Securities (ABS) Process #08 Investment in Fixed Deposits Process #09 Disinvestment in Government Securities, Treasury Bills Process #10 Disinvestment in Bonds issued FIs/PSUs Process #11 Disinvestment in Corporate Bonds, Zero Coupon Bonds, Debentures and Preference Shares Process #12 Disinvestment in Subordinated Debt Instruments Process #13 Disinvestment in Commercial Paper, Certificates of Deposits Process #14 Disinvestment in Mutual Fund Process #15 Disinvestment in Mortgage Backed Securities (MBS) / Asset Backed Securities (ABS) Process #16 Disinvestment in Fixed Deposits (Premature withdrawal) Process #17 Payment of Brokerage Process # 18 Payment of CCIL Charges

Annexure I



Process # 19 Coupon payment/ Maturity of Government Securities Process # 20 Maturity of Term Deposits / Periodic Interest earnings on Deposits Process # 21 Preparation of provisions Process # 22 Generation of fortnightly and monthly ALM Data and Reports Process # 23 Daily/Monthly Reports and MIS for Top Management Process # 24 Investment through CBLO Segment Process # 25 Disinvestment through CBLO Segment

Annexure II



8 ANNEXURE 2 – PROJECT FINANCE OPERATIONS GENERAL

The Project Finance Department (PFD) is involved in direct lending for the housing projects. The basic function of PFD department is to increase the housing stock in country and to provide house to all. Basic function like appraising the loans and monitoring the project is done by the department. Rating of the agency is done by DRMD. All disbursements and receipts of fund is done by our Mumbai office. Depending upon the requirements monitoring has been outsourced in few cases.

ACTIVITIES The main activities in Project Financing operations are as follows: - 1. Processing of application for financial assistance

Activities

1. Receipt of application in the prescribed format from the Borrowing Agency & categorizing it into the category of borrowers

2. Checking of the application to ensure that all requirements have been completed.

3. Communicating with agency to get all requirements 4. Entering details of the application in an Application Register. 5. Processing of the application - checking eligibility, exposure limit etc. 6. Preparing Project evaluation Group proposals. Components of PEG proposal

are as follows:- Due diligence Nature of the Project Project Cost & Financial Plan Prima facie viability of the project Conformity with the Loan Policy Recommendation

7. Circulating the proposal to PEG members. 8. Communication with agency regarding preliminary approval. 9. Obtaining detail project report from the agency. 10. Site visit if required. 11. Preparing project rating. 12. Preparation of project appraisal report / office note for submitting to

appropriate authority. 13. Receiving Sanction by the appropriate authority. 14. Preparation of a loan documents. 15. Preparation of repayment schedule

Annexure II



(a) Repayment of principal is in equal quarterly installment and generally starts after 1.5 years (this may vary from project to project) from the date of first disbursement or after 6 months from the date of last disbursement.

(b) Interest is payable every quarter on the amount disbursed and remaining outstanding. In case of loans that have been partly disbursed, interest can be collected periodically on the disbursed amount or the accrued interest is added to the principal amount when preparing the repayment schedule.

16. Release of sanction/rejection letter. B. Release of Financial assistance

Release of fund is done at Mumbai office. The basic steps at delhi office is as follows

1. Application for disbursement.

2. Site visit if required.

3. Preparation of Disbursement Memo.

4. Sending Disbursement Memo to Mumbai office for release of Project Finance.

C. Accounting for release of financial assistance

Activities

1. Receipt of Inter Office Transaction (IOT) advice of Disbursal at Delhi Office. 2. Appropriation of amount and Preparation of consolidated Journal Voucher at

Delhi Office. 3. Sending of consolidated Journal Voucher to Accounts Department. 4. Preparation of SAP voucher to be sent to accounts department. 5. Updating Main ledger and subsidiary ledgers. 6. Responding IOT to be sent to Mumbai office.

D. Activities after release of financial assistance

Activities

1. Reschedulement of loan - change in installment size, repayment frequency, number of installment, increasing/decreasing repayment period, bifurcating loan into number of loans, consolidating two or more loans into one, charging different interest rate on different releases under the same sanction. 1. Monitoring of project

a) Reminder for Quarterly progress report Balance confirmation certificate Recovery statements

Annexure II



b) Physical inspection of project yearly/half yearly/ before release as per policy.

E. Raising of Demand Advice for Repayment

Activities

1. Check if the system is updated of all disbursement and receipt till that time. 2. Selecting the list of agency for which the installment/interest is due for the

quarter. 3. Generation of Demand Advice in the last fortnight of the quarter, giving details

of principal and interest due for the quarter. 4. Preparation of letter for the agency for which installment/interest is not due but

accrued. 5. Printing and checking of interest calculations. 6. Sending Demand Advice to the Borrowing Agencies. 7. Preparation of summary of demand. 8. Sending summary of demand to Mumbai Office for monitoring of amounts to be

received by them. F. Receipt of Interest and Installment

Activities

1. Receipt of summary of demand from Delhi office 2. Receipt of amount due by Cheque/Demand Draft/Credit Advice 3. Deposit of instrument in bank 4. Check for clearance/dishonour of instrument 5. Preparation of Journal Voucher for General Accounts and IOT Project Finance

Account Advice for Receipt

Send IOT Project Finance Account Advice for Receipt to Delhi Office and mark off against the summary of demand.

G. Accounting for Receipt of Interest and Installment

Activities

1. Receipt of IOT Project Finance Account Advice for Receipt at Delhi Office 2. Appropriation of amount to different accounts 3. Preparation of consolidated Journal Voucher for General Accounts 4. Send consolidated Journal Voucher to Accounts Department 5. Updating Project Finance Accounts ledgers 6. Preparation of SAP voucher to be sent to accounts department. 7. Responding IOT to be sent to Mumbai office. H. Processing of Quarterly Progress Reports

Annexure II



Activities

1. Receipt of Quarterly reports from the Borrowing Agency 2. Updating the database 3. Analysis of report I. MIS for Project Finance

Activities

1. Preparation of Monthly and fortnightly report PROCESSES The basic processes for Project Finance operations covering the above basic types of activities described above are listed below: - Process #01 Grouping of eligible borrowers. Process #02 Grouping of eligible projects. Process #03 Processing of application/project appraisal. Process #04 Rating of Borrowing Agency (Done by other department with co-ordination of PFD) Process #05 Rating of project Process #06 Release of financial assistance Process #07 Accounting for release. Process #08 Raising of demand advice for repayment. Process #09 Receipt of repayments. Process #10 Prepayment of financial assistance Process #11 Quarterly MIS- Accounts closing statements Process #12 Forghtnightly MIS- ALM Process #13 Information for prudential return to RBI. Process #14 Credit Risk Reports Process #15 Flash Reports Process #16 Loan rescheduling – change in terms and conditions of loan. Process #17 Monitoring of projects

REQUEST FOR PROPOSAL FOR EXTENSION OF SAP …

Documents