REQUESTFORPROPOSALFORTHEANNUALMAINTENANCEOFIRDAISAP-ERPAPPLICATION

Request for proposal (RFP)

for

IRDAI SAP – ERP Solution Annual Technical Support and Maintenance (ATS)

RFP No...... July, 2015

Issued By

Insurance Regulatory and Development Authority of India
3rd Floor, Parisrama Bhavan, Basheer Bagh HYDERABAD

500 004
TelanganaState(INDIA)

Ph: (040) 23381100
Fax: (040) 6682 3334

email:

1. Executive Summary

Introduction

Insurance Regulatory and Development Authority of India (IRDAI) was constituted as an autonomous body to regulate and develop the insurance industry, following the recommendations of the Malhotra Committee report, in 1999. The IRDAI was incorporated as a statutory body in April, 2000. The key objectives of the IRDAI include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

2. Objective

TheAuthorityhasimplementedSAPERPSystemforitsday to day activities and operations since the year 2011.TheAuthoritydesires toaward the contractforAnnual MaintenanceofSAP ERPApplicationInitially for a period of One (1) Year extendable up to three(3) years,year on year basis as per the Authority requirement and performance of the vendor. The Bidder either should be based at HYDERABAD/willing to extend support from HYDERABAD.

3. SCOPEOFWORK (On Shared Support Model)

1. SAPModulesimplementedat IRDAIare as follows. (Detailed Scope in the Annexure)

  • Human Capital Management including Payroll.
  • Finance and Controlling (FICO)
  • SAP Portal
  • BASIS
  • ABAP

2. The selected vendor will have to maintain all the above modules and provide support for a period of One (1) year extendable up to three (3) years, year on year basis as per the Authority requirement and performance of the vendor.

3. The selected vendor will implement/resolve the GAPs identified in the existing implementation as given in the GAP Report in the detailed scope.

4. The selected vendor shall ensure that the ERP server and application run un-interruptedly and smoothly.

5. During the maintenance period, the vendor will also provide required Technical and Functional Support for the ERP Application.

6. Coordination with Hardware Supplier for resolving hardware related issues.

7. Implementation of changes less than 10 Mandays.

8. Regular backup and routine maintenance.

(The detailed scope is given in the Annexure)

Supporting Technical Resource(Consultants/Technical Resource Persons) - 5 Members Team

  • 2-3 Shared Technical Consultants for IRDAI with SAP – HCM, FICO, Portal, BASIS and ABAP Skills and 3-5 years of Experience with multiple modules expertise initially to complete the Open issues in the GAP Analysis.
  • Team Lead (1) / Manager (1) with relevant domain, experience and technical knowledge.
  • Profiles of the Candidate of the Named Technical Resources (Profile) for evaluation.
  • The Bidder / Service Provider should have Support Facility in Hyderabad.The support model shall be onsite/off shore model using shared resources.

4. Term of Reference (TOR) & Service Level Agreement (SLA):

  • Providing ofsupportfortheEndUsersbyclearing theissuesraisedbythematProductionLevel.
  • EnlighteningtheEnd Userswith regardtothe issues,implementing thechangesatConfiguration Levelasandwhenrequired.
  • Implementing theinternalCircularsfromAuthorityasandwhenrequired,implementing PeriodicalChanges,maintainingtheSAPERPApplicationforthechangesnecessitated by internalorexternalcircumstance,anyotherchangesasrequiredbytheAuthority.
  • Providingproductionsupportto the existingSAPECC6.0 installation.
  • CarryingoutCustomization/Configuration changesfornewrequirements/new processesasandwhenrequired, without any extracost, for those Effortsrequiring lessthan12.5mandays (100 man hours). Efforts requiring more than12.5mandays (100 man hours) will be considered through Change Request route subject to conditions.
  • For New changes / Major Enhancements, the requirement analysis, specification, configuration, customisation, functional clarification, development, testing, implementation and documenting the same etc., forms part of Change Request Management.
  • 3 Days Refresher Training the User and Core Team on Quarterly basis.
  • 5 Days, 8 hours Support on weekly basis.
  • Working days : Monday–Friday(usingsharedsupportmodel). Exclusion National Holidays
  • Emergency On-Call / On-Site support as and when required.
  • Periodical On-Site Support:2 to 3 days during month-end / year-end.
  • Minimum AMS Support hours requirement in a month of 250 hours.

AMS Shared Support requirement
S.No / Annual Support
& Maitainance / Supporting Hours per Month
( Regular Activities + Issue Fixing/Enhancements) / Monthly
Requirement
( Hours) / No.of Days in Month @
6 hours / Day
1 / SAP - HCM,FICO / 30+40 / 70 / 11.67
2 / ABAP , ESS / 30+40 / 70 / 11.67
3 / BASIS / 25+25 / 50 / 8.33
4 / Enhancements ,Consulting,
Change Request,Trainings, Documentation etc / 50 / 8.33

5.IRDAISAP-ERP‟SOLUTIONLANDSCAPE

Thesolutionlandscapein placeforSAP-ERPisasfollows: A)ERPSOLUTIONARCHITECTURE

B)SECURITYARCHITECTURE

C)IRDAIERPINFRASTRUCTURELANDSCAPEWITHHIGHAVAILABILITY

DATABASE:Oracle11 g

Server (6), Operating System, Oracle 11g, SAP Licenses, SAN Storage, Backup Software etc.

6.INPUTSFROMIRDA

1. IRDAIwillprovideresourcesintherolesofSubjectMatterExpertstoassist withrequirementsgathering,andtheProjectManagerforValidation/ Sign- offs.

2. Necessaryaccessandpermissionswillbegiven,afterapproval,tothe

Vendorstoenablethemtocompletethe assigned tasks.

3. ExistingDocumentationandotherrelatedmanualswillbeprovided,wherever required,inatimelymanner.

4. EnglishwouldbethelanguageofImplementationincludingTraining,if any, BusinessDiscussions,Documentationetc.

5. ResponsibilityofCreationofDatamanually,whereverit isrequired,for

TestinginTestandProductionSystemlieswithIRDAITeam. However, the responsibility of obtaining the sign-off (issue closure) report from the user lies with the Vendor. IRDAI Project Manager will only help coordinating between the User and the Vendor for sign-off reports in case there is a stand-off.

7. SUPPORT PROCESSESAND TICKET FLOW

Level 1 Support (Managed byIRDA)

Coordination

  • Call logging Receive, RegisterRespond
  • Evaluationof the problem
  • Assigningthe problem

Help desk at Level 1 will be responsible forreceivingthe calls from the end users, logging the problems in to call loggingsystem & respond to the end users on the status of the problem.The issues will beeitherassigned to respectivefunctionalconsultants or to businessanalysts. Personnel at Level 1 willbe having a list of allthe personnel at Level 2 for assigningthe issues.

The Level 1Support Team (IRDAI Core Team) will be responsible forthe following activities:

  • User Id creation,PW reset
  • Authorization assignment
  • monitoring of problems reported by end users
  • Liaison between Key users and L2 Support
  • Continuous improvements- Newfunctionality,Processimprovements

Level 2 Support (To bemanagedby Vendor)

Level 2 support personnelwill be primarily playing the role of super user and managingthe frequently asked questionsor any solutionsthat are readilyavailable off the shelf. They will also handlesome easysecurityrelated problem tickets like password reset,minor authorizations etc.

The Level 2Support Team (Vendor SupportTeam) will be responsible forthe following activities:

  • Support L1 team
  • Bug Fixing
  • Training Core team /
  • Responding to Core Team request forinformation- How ,What,When, why
  • SAPSupportpack Levels, Application of OSSnotes
  • System change-Configuration and Developments
  • Continuous improvements - Newfunctionality,Processimprovements

CRITERIAFORCATEGORIZINGTICKETS

ThefollowingisthecriteriafordecidingcategoryofTickets(Incidents)basedonseverityand hencefacilitateprioritization.

IncidentPriorities

Priority / Severity / Criteria
1 / Critical / 1.Timecriticalproblem;example-a Criticalsystem/ processis inoperative;SAPsystemdown;etc.
2.Amajorservicedisruptionaffectinganentiresiteormultiplesites;
example-communicationbrokenwithseverallocations
3.Businessisseverelyimpactedandnoworkaroundisavailable
2 / Major / 1.Timeofresolutionisimportant,example-closingactivitiesgetting delayed
2.Highuseoffunctionsareinoperable,businessproductivityis compromisedworkaroundisnotavailable;example-majorinterface erroroccurs
3.Significantbusinessimpactevenif manualworkaroundsareavailable
–workcanbedone,butnottofullcapacity
4.Somenegativeimpactonquality/ accuracy/availabilityofcritical
information
3 / Minor / 1.Highusefunctionsareinoperable;example-A/P A/Rcannotbe posted,businessproductivityiscompromisedworkaroundisavailable
2.Smallbusinessimpact,workaroundistimeconsuming
4 / Query / 1.System,application,network,hardwaredegradedbutusable
2.Alternativeavailable
3.Useroperationsfunctionwithminimaldisruptions
4.Manualworkaroundsinplacewithminimalbusinessimpact
5.Includesnewenhancements,configurationandreportdevelopment
6.Nobusinessimpact

EXPECTEDSERVICELEVELSFORRESOLVINGTHEISSUES

Priority / Severity / Response
Time / Resolution
Time / Coverage / TargetSLA
1 / Critical / Respond within1 -4 hour / Resolve within4hrs / Business
Hours
Mon–Sat / 95%
2 / Major / Respond within2 -8 hours / Resolve within24 hrs / Business
Hours
Mon–Sat / 90%
3 / Minor / Respond within5-10 hours
hours / Resolve within2
days / Business
Hours
Mon–Sat / 90%
4 / Question / Respond within12-24 hours
hours / Resolve within4
days / Business
Hours
Mon–Sat / 80%

8.DELIVERABLES

ThefollowingDeliverablesshouldhavetobemanagedbytheSupportteam (Vendor):

MonthonMonthreductionofBugs

MonthonMonthreductionofrepeattickets(trainingrelated) ImprovedSystemstabilization

Enhancements

NoDown-timeduetoSAPApplication

Enhancementsrequiredshouldbeprovidedwithoutdisturbingtheexistingscope

IMPORTANTNOTE:AnychangeswhateverandwheneverrequiredbytheAuthorityare partofAMCAgreementandWILLNOTBETREATED ASCHANGEREQUEST SEPARATELYunlessitworksout tobeamajoractivityrequiringatotal100(HUNDRED) manhours.TotalMan Hours,inthiscontext,meanstheMan HoursrequiredforInformation gathering,ProcessFlowdesignandfinalization,ApplicationDevelopment /Modification, DatabaseDesignandCreation,TestingandImplementation.THE UNUSED PERSON HOURS WILL HAVE TO BE SPREAD ACROSS THE REMAINING MONTHS IN THE AMC PERIOD. ALSO, THE PERSON HOURS OF ONE MODULE SHOULD BE INTERCHANGEABLE WITH THAT OF OTHER MODULES.

Documentation /WorkFlownotetobepreparedandsubmittedbytheVendor,withdue Certificationand Signature, for those issue which involves changes in Configuration/ Database /Application. SuchissueswillbeclosedonlywhentheAuthorityacceptsthesaid document. Sub vendor ship for the AMS is not allowed.

Changesthat require morethan12.5mandays/ 100manhoursshallundergochangemanagement process throughtheagreedeffortestimationtemplate.Vendor shall submit the effort estimation template (to be followed by the bidder during change management process) as a part of their technical bid. All Change Requests would be first absorbed from the unused man hours for that quarter. Change Requests remained, if any, after the said absorption, only will be considered for additional payment.

9.GovernanceModel

ApartfromtheInternalGovernancemodeloftheVendor,IRDAI desirestohavethefollowing inplaceforbettergovernance.

1.IssuetrackertobecirculatedtotheconcernedpersonnelofIRDAI onaregularbasisas andwhenanissuearisesandalsoif thereisanupdateontheissuesraised.Thisisin additiontomonitoringofstatusthroughSolMan

2.MonthlyreviewwithVendorsProject/Manager

3.QuarterlyreviewwithVendorsProject/Manager /DeliveryHead.

Thedurationofmeetingandplaceetc.shallbedecidedonmutualconsultations.

10.ELIGIBILITYCONDITIONSFORTHEPROPOSEDVENDORS

  • The vendor should be a registered company under companies act and engaged in the business of providing software and technology related services and provides technical support services.. Proof of registration may be submitted (ROC).
  • The vendor should have implemented SAP ECC 6.0 ERP system should be a Service provider for supporting the SAP ECC 6.0 ERP system
  • ThevendorshouldbeprovidingAMCservicesforSAPSystemsforthepast3 years.TheVendorshallsubmitthecopyofthecertificatesobtainedfromthree of their current / past clients regarding satisfactory AMC support providedtothem.
  • List of Clients for whom similar service is being rendered should be provided.
  • The estimated cost of the Project is 25 Lakh ( Approx) per year excluding the GAP implementation cost.The annual turnover of the company should be 50% of Estimated Cost during each of the last 3 years. The proofs for the turnover for the year 2014-15and for the preceding3 years shall be submitted along with their technical proposal. The proofs should be in the form of Income Tax Returns / Certificate from a qualified Charted Accountant.
  • Should be a SAP Certified Implementation Partner for Implementations inIndia. Proof for SAP Certified Implementation / Application Management Services Partner‟ shall besubmitted along with the technical document.
  • TheVendorshouldbesensitivetoCustomersandshouldmeetCustomerExpectations within the agreed time limits.
  • The AMC supportingpersonnel are expected to have SAP Certification, though not mandatory. They should be well versed and conversant with the latest developments in SAP and allied areas.
  • The Vendor should have proper Organizational Structure and should provide a clearly defined Escalation Matrix for handling various issues.
  • Vendor should follow ITIL / ITSM compliant SOP processes for SAP Support.
  • The past satisfactory performance of the Vendor in providing similar services would be one of the deciding factors for Technical Short Listing.
  • The Bidder should not have been blacklisted by any of the Government or PSU’s in India or abroad. A formal declaration to this effect should be attached as part of the Bidding Document.

11.BIDEARNESTMONEY/EMD

ThebidderhavetosubmittheBidEarnestMoney/EMDofRs.1,00,000/-(Rs.OnelakhOnly) in the form of Demand Draftfavoring: “”InsuranceRegulatoryandDevelopmentAuthority of India‟andpayableatHyderabadatthetimeofsubmissionof the bid documents. In absenceofEarnestMoney, bid will be rejected. EMD ofunsuccessfulbidderwillberefundedwithin45daysfromthedateofopeningofcommercial bid.EMDof thesuccessfulbidderwillbe refundedwithinonemonthaftersuccessful completion ofcontractfinancesettlement,uponproperrequestsigningofcontractand submission ofBGfor10%oftheProjectValue.IRDAI willnotpayanyinterestontheEMD amount.

Failureofthesuccessful biddertoagreewiththeTermsConditions oftheRFPshall constitutesufficientgroundsfortheannulment oftheaward,inwhicheventtheIRDAI shall forfeittheEMDamountand blacklistthevendortobeconsideredforany futureassignments ata laterpointintime.

Theearnestmoneydeposit(EMD)maybeforfeited:

If the bidder withdraws its bid during the period of bid validity specified by the Bidder in the Bid Form If the bidder does not accept the correction of its Bid In the case of a successful bidder, if the bidder fails within the specified time limit to sign the Contract Agreement, or to furnish the required performance guarantee If the bidder fails to produce sufficient proof for the information provided as part of response of technical bid evaluation

12.VENUEDEADLINEFORSUBMISSIONOFPROPOSALS

BidmustbereceivedbyIRDAI attheaddressspecified inBidDocument notlaterthanthe specifieddateandtimeasspecifiedinBidDocument. Ineventofthespecifieddatefor submission ofbidsbeingdeclaredaholidayforIRDA,thebidswillbereceivedupto appointed timeonnextworkingday.IRDAI may,atitsdiscretion, extendthisdeadlinefor submissionofbidsbyamendingthebid,inwhichcaseallrightsandobligationsofIRDAI and bidderpreviouslysubject to the deadlinewill thereafterbe subjectto the deadlineas extended.

Proposalscompletedin allrespectsmaybesubmittedin asealedcoversuperscribed

as“Tender forAMCofSAP-ARPSystem”andaddressedto“TheSeniorJointDirector(IT),InsuranceRegulatoryandDevelopmentAuthority of India,3rdfloor,ParisramaBhavan,BasherBagh,Hyderabad–500004”.

Proposalsmustbesubmittedphysicallybydroppinginthetenderboxavailableatthe followingaddress:

InsuranceRegulatoryandDevelopmentAuthority of India,

3rdfloor,ParisramaBhavan,

BasheerBagh,Hyderabad–500004

13.LASTDATETIMEOFSUBMISSION:

Proposalsmustbesubmittedonorbefore14thAugust2015by1500hours(3:00PM).

IRDAI may,underexceptionalcircumstancesandatitssolediscretion,extendthedeadline forsubmissionofproposalsbyissuinganoticeand this informationwill bemadeavailablein thewebsite(

14.LATEBIDS

AnybidreceivedbyIRDAI afterthedeadlineforsubmissionofbidwillbesummarilyrejected and/orreturnedunopenedtothebidder,if bidderdesiredso,againstproperreceipt.

15.MODIFICATIONSANDWITHDRAWAL

Bids once submitted will be treated, as final and no further correspondence will be entertained onthis.Nobidwillbemodifiedafterthedeadlineforsubmission ofbids.No biddershallbeallowedtowithdrawthebidafterthedeadlineforsubmissionofbids.Incase ofsuccessfulbidder,hewillnotbeallowedtowithdraw/backoutfromthebidcommitments. Thebidearnestmoneyinsucheventualityshallbeforfeitedandallinterests/claimsofsuch biddershallbedeemedasforeclosed.

16.BIDOPENINGANDEVALUATION

IRDAI willopen thebids, inthepresenceofbidderrepresentativewhochoosestoattend, atthetimeanddatementionedinBiddocumentattheaddressmentionedinPara

“SubmissionofBids”.Thebidderrepresentativeswhoarepresentshallsignregister

evidencingtheirattendance.

Preliminaryexamination:IRDAI willexaminetheTechnicalbidstodeterminewhether theyarecomplete, whetherrequiredinformation hasbeenprovidedasunderlinedinthe biddocument, whetherthedocuments havebeenproperlysignedandwhetherbidsare generallyinorder.

TheTechnicalBidsthataregenerallyinorderwillbeevaluatedbasedonthe„Eligibility

Criteria‟statedinthisdocument.Onlythosebidder‟swhosatisfythe„eligibilitycriteria‟

willbeshortlistedforfurtherstagesofbiddingprocess.

Failuretodemonstrate tothesatisfactionofIRDAIontheadherencetotheEligibility criteriaand terms/conditionswillbetreatedasnotfulfillingallthetermsand conditionsof RFP and willmakethebidliabletoberejected.The decisionofIRDAIwillbefinal and no correspondence willbeentertainedinthisregard.IRDAIreservestherighttorejectany andallproposalswithoutassigninganyreason.IRDAIwillscrutinizetheoffersreceived todeterminewhethertheyarecompleteasperRFPrequirement,whethertechnical

documentation asaskedforandrequiredtoevaluatetheofferhasbeensubmittedand whetherthedocumentshavebeenproperlysigned.IRDAI may,atitsdiscretion,waive

anyminornon‐conformityoranyminorirregularityintheoffer.Thiswaivershallbe

bindingon alltheBiddersandIRDAI reservestherightforsuchwaivers.

IRDAI maychoosetoinvitethebidderstodiscussandclarifytheirtechnicalproposal. Anychangeintheproposal,however,shallnotbepermissible afterthebidsubmission. IRDAI reservestherighttoacceptorrejectanybidortoannulthebiddingprocess and rejectallbidsatanytimepriortotheawardofcontract, withouttherebyincurring any liabilityto theaffectedbidders;withoutgivinganyreasonswhatsoever.

Thecommercialbidsofonlythosebidderswhotechnicalbidsareinorderandcompletein allrespects,shallbeconsidered.

Technical Evaluation Criteria:

S. No / Evaluation Parameter / Weight age
1 / Bidders Understanding, Experience and Client References of same Modules / 10
2 / GAPs Reports finding resolution & rectification Recommendations / 25
3 / The service provider must be a SAP certified partner, EEC Certified. / 20
4 / Named Technical Profiles in all the given Modules. / 20
5 / Support (Onsite and Off Site) Capabilities, Availability and
Training Plan. / 15
6 / Project Management & Governance / 10

Thecommercial bidshallbeopenedinthepresenceofBidders‟representative,whosebids areconsideredasresponsive asperthetechnicalandotherqualification criteriaas underlined inthebiddocument. Theintimationoftimeandplaceofopeningofcommercial bidswillbeinformedseparatelytosuccessfulbidder(s)only.Commercialbidwiththelowest costwillbegivenafinancial scoreof100andotherproposalswillbegivenafinancial score thatisinverselyproportional totheirprice.Thecommercial bidshallbeaspertheformat attachedwiththisdocument.Subsequent tothepricebidevaluation,thesuccessfulBidder shallbeissuedaletterofintentasperspecifiedtimelines. Theselected biddershallfurnishthe performance guaranteeaspertheattachedformatwithin10workingdaysofthereceiptof theletterofintent.TheAuthorityreservestherighttosatisfyitselfofthereasonabilityofthe commercialbidinallaspects.

17.CLARIFICATIONSONBIDDERENQUIRIESANDIRDAI RESPONSESAND CONTACTPERSON

Toassistintheexamination,evaluationandcomparisonofbidsIRDAImay,atitsdiscretion, askthefirm/organizationfor clarification,presentation,andresponsein writingandno changeinthepriceorsubstanceof thebidshallbesought,offeredorpermitted.

Abidderrequiringanyclarification ofthebiddingdocumentsmaynotifyIRDAI bye-mailto I willrespondtoallsuchqueriesbye-mailonly.Anyquestions concerningthisRFPmustbesubmittedby e-mailto on orbeforethe lastdateforclarificationsi.e.,4thAugust2015..

Similarly,theBiddershouldnominatea

personasasinglepointofcontactfromwithinitsorganisation.Thename,postaladdress,

e‐mailaddressandcontactphonenumbersofsuchpersonshouldbementionedinthe

proposal.Norequestsforclarificationwillbeentertainedbytelephoneorinperson.Ifa

bidderdiscoversanysignificantambiguity,error,conflict,discrepancy, omissionorother deficiencyinthisRFP,thebiddershouldimmediatelynotifytotheaboveofficialof sucherror and request modification or clarification of the RFP document, which modification/clarificationshallbeprovidedatthesolediscretionofIRDAI.

18.REJECTIONOFABID

IRDAIdecisiontorejectabidand forfeit theEMDwillbefinal and withoutprejudiceand will bebindingonallparties.

19.IRDAI HASRIGHTTOTERMINATE THEPROCESS

TheIRDAImayterminatetheRFPprocessatanytimeandwithoutassigninganyreason. TheIRDAImakesnocommitments,expressorimplied,thatthisprocesswillresultina businesstransactionwithanyone.

ThisRFPdoesnotconstituteanofferbytheIRDAI. Thebidder’sparticipationinthisprocess mayresultinIRDAIselectingthebiddertoengageinfurtherdiscussions andnegotiations towardexecutionofacontract.Thecommencementofsuchnegotiationsdoesnot,however, signifyacommitmentbyIRDAItoexecuteacontractortocontinuenegotiations. TheIRDAI mayterminatenegotiationsatanytimewithoutassigninganyreason.

20.KEYACTIVITIESANDDATES

S.No. / Activity / Dates
1 / IssueofNotification / 24thJuly2015
2 / LastDateforsubmissionofqueries / 4thAugust2015
3 / SubmissionofFinalBid/Tender(Technicaland
CommercialProposals) / 14thAugust2015

21.AWARDOFCONTRACT

Thecontractwillbeawardedtotheresponsible,responsivebidderwhoseproposalconforms totheRFPand,intheopinionoftheIRDAI,represents thebestvaluetotheproposedAMC work.

.

Thesuccessfulbiddershallbeinvitedtodoadetailedpresentation givingthesolution approachcoveringthefollowing:

Justificationforthecommercialsquotedwithadetailedstatementofwork.

IRDAI reservestherighttonegotiatethecontractpriceandtomodifythestackwhere thebusinessor/andTechnicalrequirementscanbebettermetwiththemodification mutuallyagreed.

22.IRDAI‟SRIGHTTOACCEPTANYPROPOSALANDTOREJECTANYORALL

PROPOSALS

IRDAI reservestherighttoaccept orrejectanyproposal,andtoannulthetenderingprocess andrejectallproposals atanytimepriortoawardofcontract,withouttherebyincurringany liabilitytotheaffectedbidderorbiddersoranyobligation toinformtheaffectedbidderor biddersofthegroundsforIRDA'saction.

23.NOTIFICATIONOFAWARD

Priortotheexpirationofthevalidityperiod,IRDAI willnotifythesuccessfulbidderinwritingor byfaxoremail, tobeconfirmedinwritingbyletter, thatitsproposalhasbeen accepted.The notificationof award will constitutethe formationof the contract.Uponthe successful bidder'sfurnishingof performancebank guarantee,IRDAI will notifyeachunsuccessful bidder.

24.SIGNINGOFCONTRACT

Thebidder(primebidderin caseofconsortium)shallsigntheagreementwithIRDAI,IRDAIat the timeof awardofthecontract,within15daysofthe awardorwithinsuchextendedperiod asmaybespecifiedbyIRDA.Theagreement shallincludesystemprocedure tobe adoptedbybidder asdesired byIRDA.TheFirm/organizationisalso requiredtoenter intoa NonDisclosureAgreementwithIRDAI forconfidentiality/secrecy ofdata/systemand processes.IRDAI reservesitsrighttomodifyanyclauseoftheagreementpriortosigning anduponadequatenoticetothebidder.Non-fulfillment ofthisconditionofexecutinga contractbythesuccessfulbidderwithinthespecifiedperiodwouldconstitutesufficient groundforannulmentoftheawardandforfeitureofBidEarnestMoney.

25.PERFORMANCEBANKGUARANTEE

ThesuccessfulbiddershallathisownexpensedepositwithIRDA,within10working days ofthedateofnoticeofawardofthecontractorpriortosigningofthecontract whicheverisearlier,anunconditionalandirrevocablePerformanceBankGuarantee (PBG)fromascheduledbankacceptabletoIRDA,payableondemand,forthedue performanceandfulfilmentofthecontractbythebidder.

Thisshallbefor10%ofthecontractvalueforaminimumperiodof36monthsfrom thedateofstartofthecontractorearliertermination ofthecontract,whichthe firm/organization willhavetogetextendedfortheperiodwhichIRDAI maydecideto extendthecontractatthediscretionofIRDA.Failureofthesuccessful bidderto complywiththisrequirement shallconstitutesufficientgroundsfortheannulmentof theawardandforfeitureofthebidsecurity,inwhicheventIRDAI maymakethe awardtothenexteligiblebidder.

26.OTHERTERMSANDCONDITIONS

1. ThisAgreementwillbeforaperiod36monthsfromthedatehereinabovementioned unlessotherwiserenewedbythePartiesuponmutualconsultation.

2. ThisAMCwouldincludeallthemodulesmentioned intheSOWandthevendorwill havetoattendtotheconfigurationissuesinadditiontothetransactional support issues,intheimplementedscopeof SAPsystematIRDAI.

3. Inthisregard,theVendorshallensurethatappropriatelytrainedPersonnel are availabletoeffectivelyfurnishtheServicesascontemplatedunderthisAgreement.

TheVendorshallbesolelyresponsiblefortheactsofitsPersonnelandshould expresslyagreethat,allpaymentsduetoitsPersonnelasaresultofrendering

ServicesunderthisAgreementshallbetheVendor’ssoleresponsibility.

4. TheVendorshouldagreethatheshallprovide theServices inatimelyandeffective manneranddelivertheDeliverablestoIRDAIinaccordance withthetimeschedule specifiedbyIRDAIintheworkschedule.Intheevent,theVendorisunabletoprovide theServicestoIRDAIandfailedtodelivertheDeliverablesinaccordancewiththe timeschedule, then,theVendorshallforthwith notifyIRDAIinwritingthereasonsfor thedelayandcomplete theServicesanddelivertheDeliverablesinaccordancewith thetimeschedulespecifiedbyIRDAIthereafter.

5. Toensureeffectivesupportprocess,VENDORshouldoffersdeliverables under ServiceLevelAgreements (SLA)asagreedwithIRDAI.VENDOR shouldmonitor performanceof SLAsandprovidesmonthlyreportsto thedesignatedcustomer representative.

6. VENDOR willsubmitareportattheendofeverymonthonthesupportactivities executedfor the month.Theformatfor the samewill decidedmutuallybetweenIRDAI andVENDOR. ThisreportwillbebasisforVENDOR tosubmittheinvoicesforthe servicesofrespectivemonths.

7. Thereportsmayincludeissuesrelatedto SupportAvailability,SupportResponse, SupportResolution

8. Thereportsprovidedtothecustomercanhelpidentifyissuesrelatedtothefollowing:

  • Bettertrackingofcallstoresolution.
  • Abilitytoreviewoutstandingissues.
  • Escalationofissues,if necessary

9. Statusreportswouldbesubmitted atidentifiedintervals duringsteadystatewith detailslike:

a. Numberofopen,closedandbacklogcases.

b. Numberof High,MediumandLowPrioritycases.

c. SLAAdherencestatistics.

10.IncaseofintroducinganewfunctionalityaspartofBugFixingorLocalization, VENDORwoulddevelopaFunctionalSolutionDocumentandtrainendusersand

CORETeams.

11.VendorshallprovideescalationmatrixtoIRDAIalongwiththecontactdetailsofthe officials.

12.VendorshallprovideBankGuaranteefor10%ofAMCcostvalidduring theperiod of

AnnualMaintenance.

13.IRDAIreservestherightsto alter/ modifythepriorityof theissuesasperits requirements.

14.TheVendorisnotpermittedtosubcontracteitheranypartorwholeofthisAgreementto anyThirdParty.

15.Vendor shall not divulge any information to which it had access under this agreement. Neithervendornoranyofitsauthorizedpersonnelshallindulgein unauthorizeduseofsoftwareofIRDAI.

16.Vendorshallnotpublicizethisagreementforitssalespromotion.

27.PAYMENTTERMS

1. Payment foreachquartershallbemadeonsubmission of the Quarterly Invoicebythevendorwhichshall quoteits PANNo.andServiceTaxNo.in all suchclaims. Paymentswillbe madeon aquarterlybasisand the payment process for a completed quarter will be initiated atthebeginningofnextquarter, subject to other conditions.Thefirstquarterpaymentshall be madeonsubmissionofBGandsingingoftheAMCcontract.

2. Alongwiththe ClaimInvoice,the Vendorneedstosubmitthe issuelogsandProcess Documents for the Processes introduced / modified during the quarter, if not submittedaspartofmonthlyreportingstructure.

3. Paymentswillbemadeforthenetamountsafteraffectingstatutorydeductions.

28.PENALTY

Amaximum penaltyof 10% of AMC value forevery quartermaybe levied based on breaches in achieving the SLAs. The penalty calculated shall be adjusted from the amount payable.

During AMC period, penalty is as follows:

S.No. / Availability of the SAP Application (Quarterly basis) / Penalty
1 / 100% to 99.5% / NIL
2 / Below 99.5%-Up to 98.5% / 2% of quarterly lease charges
3 / Below 98.5%-Upto 97% / 5% of quarterly lease charges
4 / Below 97% -Up to 95% / 7% of quarterly lease charges
5 / Below 95% / 10% of quarterly lease charges

Below 90 % of SLA in a quarter not acceptable and may lead to termination of the contract with higher penalty or the final decision may be taken by IRDAI.

Annexure- A

Detailed Scope for the Annual Technical Support

1. HCM(HumanCapitalManagement)includingPayroll.

I) PersonnelAdministration

II) OrganizationalManagement III) TimeManagement/ Roasters IV) PayrollProcessing

V) TrainingEventManagement

VI) Recruitment

VII) PersonnelDevelopment

VIII) CompensationManagement

IX) TravelManagement

2. FinanceandControlling(FICO)

I)Financials(FI)

a) BasicSettings

b) GeneralLedgerAccounting c) BankAccounting

d) AccountsReceivable e) AccountsPayable

f) AssetAccounting

g) CashManagement

II) Controlling(CO)

a) CostCentreAccounting

b) Financial Statements

3. SAPPortal

I) EmployeeSelfService(ESS)

II) ManagerSelfService(MSS)

4. SAP BASIS Support and Maintenance:

Hardware and Database Administration.

•Hardware upgrades - adding memory or servers or devices

•Database backup and recovery

•Database optimization

•Disaster Recovery

•TechnicalAdministrationforProduction,QAandDevelopmentsystems

Some of the responsibilities of Basis personnel include the maintenance and upkeep of the hardware and database as other typical system administrators do. Typically, sizing, upgrading, backup and recovering are some of the issues that are dealt with.

Users and Security Administration.

•Create users and assign profiles

•Modify, lock and unlock users

•Develop authorizations and profiles

Client Maintenance.

•Create clients

•Copy and refresh clients

•Client imports and exports

•Delete and remove clients

•Modify change options

•Client maintenance involves the creating of clients and running client copies and refreshes.

•Client exports and imports occurs when you wish to take a client from one system and move it to another. Exports make a file at the operating system level, which can then be imported into the target system.

•When clients are obsolete, they must be deleted in order to be more efficient with memory.

Correction and Transport Systems (CTS)

•Moving changes from one R/3 system to another

Online Service System (OSS)

•OSS is a set of SAP’s online services such as bug fixes and useful implementation information

•OSS Notes

•Hotpacks

•Remote Connections

•Send questions to SAP