/ Purchasing documentation on Open RFP
“09” March, 2010

Purchasing documentation on

Open request for proposals for contract awarding to provide HR Management Software Solution (HRMS) to K-Telecom CJSC for the period of 2010 May to 2010 June

Yerevan
2010

Contents

Company Profile 4

1. General Provisions 5

1.1. General information on Request for Proposals 5

1.2. Legal status of procedures and documents 5

1.3. Appeal 6

1.4. Other provisions 7

2. Subject of RFP 8

2.1. The subject of RFP is as follows: 8

2.1.1 Technical part 8

2.1.2 Commercial part 9

3. Order of execution of request for proposals. 10

3.1. Preparation of proposals 10

3.2. Requirements to Applicants. Approval of compliance with the presented requirements 12

3.3. Submission and acceptance of proposals 13

3.4. Amendment and call back of the Proposals 14

3.5. Evaluation of Proposals 15

3.6. Decision Making 17

3.7. Agreement conclusion 17

3.8. Rights of the Applicant that provided best offer for RFP 17

3.9. Notification of Applicants about the results of request for proposals 18

4. Samples of standard forms of documents, included in the Annex 19

4.1. Letter about offer submission (Form 1) 19

4.2. Technical / Commercial proposal on provision of the works, goods or services (Form 2) 21

Applicant’s Questionnaire (Form 3) 22

Technical Specification (Annex 3) 24

Company Profile

'K-Telecom' CJSC (VivaCell-MTS), is the Armenia’s leading mobile operator with over 2 million subscribers. Starting its activity onJuly 1,2005, VivaCell-MTS spearheaded the development of the telecommunication sector in Armenia, and offered innovative mobile voice and data products and services, and tailored solutions for different market segments. On September 14, 2007, the Company became the subsidiary of Mobile Tele-Systems OJSC (MTS), one of the world’s largest multinational mobile operators with more than 360 roaming partners in more than170 countries.

VivaCell-MTS has become the choice of remote mountainous villagers, housewives, youth, middle-class as well as traveling business people. VivaCell-MTS also paved the way and lead this partnership with the society through its Corporate Social Responsibility: everywhere hand in hand with all Armenians in social, cultural, health, sports, educational and humanitarian activities.

1. General Provisions

1.1. General information on Request for Proposals

1.1.1. “K-Telecom” CJSC - legal address: 4/1 Argishty str., Yerevan, Armenia (hereinafter referred to as the Organizer), with the public notification posted on its website at http://www.mts.am/procurement and/or in Republic of Armenia newspaper #42 dated 11/03/10 on conducting Open Request for Proposals, has invited software solution providers organizations (hereinafter referred to as the Applicants) for submission of proposal with the right to conclude agreement on HR Management Software Solution (HRMS) with ’K-Telecom’ CJSC during May-June 2010

1.1.2. For further information, please apply to the Organizer: contact person

Rousanna Apoyan

Analytical Officer

Administration Services Department

Purchasing Unit

’K-Telecom’ CJSC (VivaCell – MTS)

4/1 Argishty Street

Yerevan 0015, Armenia

Tel.: +374 93 298507

Fax: +374 93 298541

1.1.3. The complete information on participation in open purchasing process is posted on the Organizer’s website at http://www.mts.am/procurement and can also be provided in a hard copy or on a CD upon official request or applicability.

1.1.4. The procedures as well as instructions on participation and preparation of Proposals for open purchasing process are provided in the Forms of Section 3 and the Section 4.

1.1.5. No fee is foreseen for provision of RFP documentation.

1.2. Legal status of procedures and documents

1.2.1  The Open Request for Proposals (RFP) is not a tender and the given procedure of Open RFP is also not considered as a public tender. It is a collection of respective offers available in the market, as a result of which the best offer might be accepted. The process of the request for proposals is not regulated by the Articles 463-465, 1043-1044 of RA Civil Code and Law “On Public Auctions”

1.2.2  Publication of RFP in compliance with point 1.1.1 with its indispensable annexes is the invitation to submit proposals and must be considered by the Applicants as such.

1.2.3  Applicant’s proposal has legal status of offer, which should include all the essential terms of the given contract and shall be considered by the Organizer in compliance with this document. The Organizer reserves the right to determine Applicants’ proposals, as firm offers, which are not subject to further changes except for the cases foreseen by this document.

1.2.4  The Agreement concluded on the basis of RFP Process results, stipulates all agreements reached by the Parties.

1.2.5  In the course of determination of Agreement terms with the Applicant that submitted best offer the following documents are used with the strict order of the indicated hierarchy (in case of their controversy):

a)  Notification about conducting Open RFP and this Documentation on Open RFP for all the executed stages including all the addenda and clarifications;

b)  Applicant’s proposal with all the attachments and clarifications in compliance with Requirements of the Organizer.

1.2.6  Other documents of the Organizer and the Applicants do not define the rights and obligations of the parties with regard to the current Open RFP.

1.2.7  In all other cases, which are not regulated by the Notification about conducting the Open RFP and current Documentation on Open RFP, parties are governed by the legislation of the Republic of Armenia (RA).

1.2.8  Upon the authority of submitting Proposal and in case of waving the right of call them back according to the procedure stipulated by the given Document and RFP, the Applicants shall agree with the procedures and provisions prescribed by the given Document and RFP.

1.3. Appeal

1.3.1. All disputes and disagreements, arising as a result of conducting the RFP, including the one, concerning execution of obligations by Organizer and Applicants, should be resolved through negotiations. When one of the parties receives a claim, it shall send the response to the other party within 10 working days from the moment of its receipt. In case if disputes are not regulated after 30 days of their commencement, they should be regulated according to the rules and procedures of RA legislation.

1.4. Other provisions

1.4.1. The Applicants independently incur the expenses with regard to the preparation and submission of a Proposal, whereas the Organizer is not responsible for those expenses and has no obligations regardless of the course and results of the Purchasing Process.

1.4.2. The Organizer provides reasonable confidentiality regarding all the information received from the Applicants, including the one described in the Proposal. This information may be provided to other Applicants or to the third party only in cases directly stipulated by the existing legislation of RA or the given RFP documentation.

1.4.3. The Organizer reserves the right to reject the Proposal if he/she ascertains that the Applicant expressly or by implication gave, agreed to give or offered the Organizer’s employee reward in any form: job, service, any value as a stimulus that can influence the decision-making to define the Winner.

1.4.4.  The Organizer has the right to reject the Proposals of the Applicants which came to an agreement with each other on the determination of best offer or for the purpose of having impact on that process.

1.4.5.  The Organizer reserves the right to cancel the purchasing process on conducting an Open RFP at least 3 days prior to the closing date of this Open RFP (as specified in item 3.3.4) respectively notifying about it the Applicants via e-mail and/or posting of this information on http://www.mts.am/procurement webpage. The Organizer bears no responsibility for the expenses incurred by the Applicants or Third Parties in a result of such cancelation.

2. Subject of RFP

2.1. The subject of RFP is as follows:

a. The implementation of a Human Resource Management system is necessary to automate all existing HR processes and to meet the following goals:

1. To ensure the proper management of staff related data as a consolidated and authentic source of information;

2. To provide the user access to all parties of HR management process in terms of document flow optimization, confidentiality and proper archiving.

3. To set a unified HR reporting related to all the existing processes and avoiding loss and duplication of personnel related information and processes.

b. The Applicant should provide a Software Implementation Plan (SIP) with necessary time resources with implementation timeline for the specifications described in the Attachment 3 from A to Z.

c. The Applicant should provide the proposal, containing a quotation.

d. The Applicant should provide the Hardware and Software requirements for the offered product.

See Annex 3 for technical specification.

2.1.1 Technical part

·  Full Demo version for evaluation to be provided together with other documentation in the offer.

·  Provision of interface model with minimum functionality after concluding the agreement and before software installation with the possibility to review and request for the new technical/functional adjustments in the frames of existing technical requirements without additional fee

·  Comprehensive HR Management System covering all possible HR functionalities (for reference- see also the Annex 3 «Technical requirements»).

·  Technological and organizational-technical proposals for rendering services.

·  The Applicant should have high business reputation

2.2. The Applicants` proposals should be elaborated in accordance with Form № 4.2, which is described in Annex № 1.

3. Order of execution of request for proposals.

3.1.  Preparation of proposals

3.1.1.  General requirments to Proposal

The Applicant who wishes to respond to the RFP must prepare a Proposal, which shall include:

3.1.1.1.  Letter about offer submission in the form and according to instructions, stipulated in this Documentation (Form № 1);

3.1.1.2.  Technical / Commercial Proposal for provision of goods, works or services in the form and in accordance with instructions, stipulated in this RFP (Form № 2);

3.1.1.3.  Price proposal in accordance with instructions indicated in this RFP;

3.1.1.4.  The draft Agreement in accordance with instructions stipulated in this RFP;

3.1.1.5.  Documents, which prove the Applicant’s compliance with requirements of this RFP (sub-point 3.2).

3.1.2.  The Applicant shall submit all documents in hard copies as well as electronically on a CD.

3.1.3.  The Applicant is entitled to submit only one Proposal. In case of violation of this rule, all Proposals of this Applicant are rejected without consideration of their merits.

3.1.4.  If there are multiple Lots, the Participant prepares an individual Proposal for each Lot applied. All Proposals shall be filled in according to this purchasing documentation and have to be placed in different envelopes and shall be sealed with the stamp of the Applicant. The lot numbers have to be specified on the envelopes. Afterwards the envelopes have to be inserted into the envelope of the Applicant.

3.1.5.  Each document, included in the Annex, should be signed by the person who, pursuant to RA legislation, is entitled to act on behalf of the Applicant without power of attorney, or the person duly authorized by the Applicant on the basis of notarized power of attorney. In the second case, the original of power of attorney shall be fixed as an Attachment.

3.1.6.  Each document, enclosed in Applicant’s Proposal, must be sealed with Applicant’s seal.

3.1.7.  Documents (sheets or informational envelopes), included in Proposal, should be fixed or packed in a way that would prevent documents or informational envelopes from accidental loss or replacement.

3.1.8.  Applicant shall prepare one original and two copies of Proposal in each language (if multiple languages are applied), on which the words “original” and “copy” should respectively be indicated.

3.1.9.  Neither of corrections in the Proposal text has legal force, except for the cases, when these corrections are authorized by handwritten script “corrections are verified” and personal signature of the authorized person is indicated next to each correction.

3.1.10.  Requirements to the language of proposal

3.1.10.1.  All the documents, included in the Proposal, should be prepared in Armenian and/or English with the exception of the following:

The documents which original copies were presented to the Applicant by the third parties in another language, may be presented in the original language, providing the attached translation of these documents in Armenian and/or English (in especially envisaged cases the translation must be apostilled), for authentication of which the Applicant is responsible. In case of revealing discrepancies between the translation and the original of the document, the Organizer makes a decision on the basis of a translation.

3.1.11.  Clarification of Documentation on request for proposals

3.1.11.1.  Applicants are entitled to apply to the Organizer for clarification of this RFP. The requests for clarification of RFP should be submitted in the written form with the signature of the head of the organization or another responsible person authorized by the Applicant.

3.1.11.2.  Organizer, within reasonable period, should provide an answer to any question that he/she received not later than 2 days prior to the deadline of Proposal receipt (point 3.3.4.). If, in Organizer’s opinion, the given question is of interest to all the Applicants, the answer copy (without indication of the question source) should be announced to all the Applicants that officially received this Documentation (sub-point 1.1.3) or via the same communication means used for posting this announcement.

3.1.12.  Amending Documentation on request for proposals

3.1.12.1.  The Organizer is entitled to amend this documentation on request for proposals before the deadline for submission of the Proposals but not later than 3 days prior to the submission deadline, except for the cases when these amendments do not change the significant conditions indicated in RFP.

3.1.12.2.  All Applicants shall be immediately notified on the matter of such amendments via the same communication means used for posting this announcement.

3.1.13.  Prolongation of the deadline of Proposals acceptance

3.1.13.1.  If necessary, Organizer has the right to prolong the deadline of Proposals acceptance, stipulated in sub-point 3.3.4 with notification to all Applicants in compliance with the procedure, stipulated in 3.1.12.1.

3.2.  Requirements to Applicants. Approval of compliance with the presented requirements

3.2.1.  Requirements to Applicants

3.2.1.1. Any legal entity reserves the right to submit proposals in accordance with the rules and procedures prescribed in this Documentation. In order to qualify for the best offer and for the right to conclude Agreement, Applicant should comply with the following requirements at the moment of the Proposal submission in compliance with this Documentation on request for proposal: