File Ref.: K/22/15-188 Appendix B

Page 1

Special Conditions of Contract

1. Contractual Period

This Contract shall be valid for a period of twelve (12) months effective from the 1 April 2005 or the date of acceptance whichever is the later, with an option for extension for a further twelve (12) months at the sole discretion of the Government. The date of acceptance shall be the date referred to in clause 5(a) of the Terms of Tender in GSD-TERMS-1(July 2003).

2.  Probable Requirement

The quantities specified in the Schedule A are an estimation only and are not being figures to which the Government binds itself to adhere. The actual requirement may vary depending on the actual need and the Contractor must be prepared to accept any increase or decrease up to thirty percent (+/-30%) of the Contract value. The Contractor shall allow a mixed drawing of quantities of the items awarded.

3.  Option to Purchase

(a)  Persuant to clause 1 above, the second year requirement is an optional requirement. The Contractor will be informed 2 months before the expiry of the initial 12-month period whether the Government shall exercise the option of extending the contractual period for another 12-month period.

(b)  If the Government exercises the option of extension, the quantities specified shall be subject to a +/-30% in accordance with Clause 2 above.

4.  Extent of Stock

(a) Orders will be placed to the Contractor by various government departments on an ‘as and when required basis’ and the Contractor shall deliver the Goods ordered to the location as specified in the purchase order within 14 days from the date of order.

(b)  The Contractor shall maintain a minimum ready stock equal to 3 months of the contractual quantity for ex-stock supplies.

5. Marking

All the Goods delivered must be clearly labelled with batch control numbers, the expiry date of the items in question and the country of origin.

6. Product Replacement

(a)  In the event that either an item in the Schedule is discontinued in use by the Government or the use of which is superseded by a new item, the Government has the right to discontinue the purchase of the item.

(b) The Contractor undertakes to offer to the Government any units of microfilm materials in substitution for units of the Goods as specified in Schedule A where the substitute units have performance characteristics similar to or better than any units of the Goods as specified. Such substitute units shall be offered to the Government at the Contractor’s prevailing prices including discount offered to the Government in respect of the Goods under this Contract provided that such prices, after discount, are not higher than the respective Contract prices of the units to be substituted. In the event that the Government elects to obtain the substitute unit of photographic materials from the Contractor, the provisions of this Contract shall apply to such substitute units.

7. Guarantee

(a) The Contractor warrants that the Goods delivered shall have a shelf-life of not less than 12 months from the date of delivery to the location as specified in the purchase order.

(b)  All Goods supplied under this Contract shall be guaranteed against faulty materials for a period of twelve (12) months from the date of final acceptance. All replacement within this period shall be carried out free of all costs by the Contractor.

8. Order Status Report

The Contractor shall provide monthly order status report to the Government Supplies Department within the first 10 calendar day of each month. The order status report shall include the name of user department, order number, quantity, order value and date of delivery.

9. Payment through the Purchasing Card System

(a) In respect of the orders placed by the Government through the Purchasing Card System, the Contractor is required to produce the relevant sales slips and the duly signed delivery note to the Card Issuing Bank for collection of payment. No invoice shall be issued for Goods delivered under the Purchasing Card System. The Government shall not be held responsible for any delay in payment if any of the documents which are required for processing the relevant payments are not properly supplied to the card issuing bank within the time stipulated by the card issuing bank or the Government.

(b) The Contractor shall at its sole costs and expenses, make such arrangements with the Card Issuing Bank as may be necessary to enable the Government to pay for the goods or services through the purchasing card system.

(c) The Contractor warrants that the arrangements referred to herein will be finalised and completed well before the payment due date specified in the Contract.

10. Place of Manufacture

The Government reserves the right to reject any Goods which were not manufactured in the place specified in the Contract.

11. Special Packing Requirements

(a) Tenderers are requested to minimize the use of packaging materials.

(c)  If the goods offered are to be packed in carton box. The carton box packaging must be made from 100% recovered fibre# and must be strong enough for storage, stacking and transit. A certificate/declaration for compliance issued by the manufacturer must be submitted with the tender documents for evaluation.

#Definitions/Terms of Fibre

Recovered fibre

It means:

(1) Postconsumer fibre; AND/OR

(2) Manufacturing wastes such as:

(a) Dry paper and paperboard waste generated after completion of the papermaking process, and

(b) Repulped finished paper and paperboard from obsolete inventories of paper and paperboard manufacturers, merchants, wholesalers, dealers, printers, converters, or others;

AND

(3) It does not include mill broke.

Postconsumer fibre

(1) Paper, paperboard, and fibrous wastes from retail stores, office buildings, homes, and so forth, after they have passed through end-usage as a consumer item, including: used corrugated boxes, old newspapers, old magazines and mixed waste paper; AND/OR

(2) All paper, paperboard, and fibrous wastes that enter and are collected from municipal solid waste.

Postconsumer fiber does not include fiber derived from printers’ over-runs, converters’ scrap, and over-issue publications.

Mill Broke

Any paper waste generated in a paper mill prior to completion of the papermaking process. It is usually returned directly to the pulping process. Mill broke is excluded from the definition of ‘recovered fibre’.

12. Payment Correspondence

This Contract is arranged for various government departments, and payment in respect of the Goods supplied thereof shall be arranged by individual departments. To enable speedy payment to be made, invoice and correspondence concerning payment should be forwarded to the appropriate office to which the Goods are delivered. The Government shall not be held responsible for any delay in payment if invoice and correspondence are not properly addressed.

13. Intellectual Property Rights

(a) The Contractor hereby warrants that the Goods supplied under this Contract and the process for their manufacture do not infringe the Intellectual Property Rights of any third party.

(b) The Contractor hereby undertakes to inform the Government immediately if any claim for infringement or alleged infringement of Intellectual Property Rights is lodged against them during the currency of this Contract in respect of the Goods supplied under this Contract.

(c) The Contract shall indemnify the Government and keep the Government fully and effectively indemnified against all claims, actions, proceedings, liabilities, losses, damages, demands, charges, costs and expenses of whatsoever nature arising from or incurred by reason of infringement or alleged infringement of any Intellectual Property Rights in connection with the use or possession of the Goods or any part thereof by the Government.

(d) In the event of a claim being received by the Government alleging or the Government having grounds to believe that the Goods supplied hereunder are infringing copies or have otherwise infringed the Intellectual Property Rights of a third party, the Government Representative may, at its election, either

(i)  forthwith terminate this Contract in respect of the Goods not yet received by the Government; or

(ii)  suspend the performance of this Contract until the claim in question is resolved to the satisfaction of the Government provided that election to suspend performance under this Clause shall not preclude the Government from terminating this Contract any time after such election.

(e) The Government shall not be liable to pay any cost or compensation to the Contractor by reason of any termination under Clause 13(d) above irrespective of whether the Goods are later found by a court of law to have infringed any person’s Intellectual Property Rights or not.

(f) The rights of the Government under Clauses 13(d) and 13(e) shall be without prejudice to the provisions of Clauses 13(a) to 13(c) above.

K2215_188B