RFP for Modernised Costing System - Clarifications issued by DOP ...

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RFP for Modernised Costing System - Clarifications issued by DOP on 2nd May 2011

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Bidding Document

Reference(s)(section

number/ page)

Content of Bid

Document requiring

Clarification

Points of required

clarification

Clarification issued by DOP

IBM

1

Section: Instructions to Consultants Part-II (Data

Sheet), Point No. 14, page 19

Evaluation Criteria

Are the point distribution against 3 past projects experiences based on Project

Value? If yes, Please clarify the weightage of the same.

The project of more than the specified value shall have same weightage

irrespective of their value, however, the projects have to be of the nature and

area similar to the proposed project of Modernised Costing.

2

Section 3: Technical Proposal - Forms, Section 2.3

Page 25

PMU Experience

Please include Global Experience also in this case

Section 2.1 provide for Consultants Global experience.Relevant information on

Global PMU experience may be provided there.

3

Section 3: Technical Proposal - Forms, Sub Section

Form Tech - 10: page 37

Costing personnel

How many people are currently associated with costing and how many costing

module users do we expect? How are they distributed across the country?

For the operational/ financial/ managerial decision making the costing module

shall be used at various levels, from Branch PO to Directorate level. For

structure information, website of Department- indiapost.gov.in may be referred.

4

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point no. 2: Scope of

Work, Sub-section 2.1 (iv), page 44.

The costing system so

devised should be

able to analyze the

cost and profitability

The RFP and resource requirements are heavily based on Activity Based Costing.

There may be other alternatives which may be much easier to implement and

maintain. Does the DoP want to look at those alternatives also...such as

Competitor based or market based pricing? With reference to Section 5

subsection 2.1 Page 44 Point IV, it seems DoP wants the consultant to evaluate

other costing options and recommend the best fit. So shouldn't the CVs have

focus on cost consulting as a whole rather than focused on ABC costing.

DoP shall be considering all the available options, howver, being a service

organisation and human resources being major input in the process by means of

activities performed by them. Therefore, Activity Based Costing shall also have

to be analysed and considered. Certain operations in certain geographical areas

are being being performed by DoP only, where competitor's prices may not be

available for comparision.

5

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point No. 2.2 (iv),

page 45

Methodology proposed

to be adopted

Would the Department ERP be ready by the time the prototype implementation

time comes? What if the ERP system is not ready, how will the incorporation

takes place

The design devised by the Costing Consultant shall be incorporated in the ERP

system of DoP, therefore, prototype shall be built into that system and would be

ready for implementation

6

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point no. 4:

Expected Deliverables, Activities & Timelines, Sub-

section 3, page 46.

Benchmarking Report

For their activity based costing reports: We suggest DOP to share the existing

costing calculation procedure and reports which are currently in use

The existing costing procedures etc. shall be shared with selected consultant

under AS IS part.

7

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point no. 4:

Expected Deliverables, Activities & Timelines, Sub-

section 2, page 47.

AS-IS assessment

report

30 days for AS-Is study is inadequate. Please extend it to 60 days

The periods under the RFP document are devised for timely incorporation of the

System to be devised into ERP of the Department.

8

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point no. 4:

Expected Deliverables, Activities & Timelines, Sub-

section 5, page 47.

IT Architecture and

software development

/implementation plan

What are the current systems that provide input to the activity-based costing

process now? What are the platforms? What would the changes in that portfolio in

near future before the implementation begins?

It is expected that basic knowledge regarding project must have been obtained

by prospective consultant at the time of submitting EOI. However, selected

consultant are expected to study this part under AS IS phase of the project.

9

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point no. 4:

Expected Deliverables, Activities & Timelines, Sub-

section 1, page 48.

Project Management

review of pilot

implementation

How do you define Pilot? Who will provide the H/w, S/w for the Pilot? OR is it that

SI will act as a PMU for another Vendor/SI who will do implementation. Also pls

define the scope (functional/locational), duration and acceptance criteria of Pilot

Pilot here does not carry separate meaning and have to be implemented in two-

three circles/ Directorate before replicating in other field units. The Hardware and

software are to be provided by the Core System Integrator

10

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point no. 5, Sub-

section 5,6, page 50

Key consulting

resources required for

the project

We understand the the Costing Module of the ERP package suffice the business

need. Please clarify what is the importance of BI and EA in the current scope of

work?

The ERP Package is expected to meet the customised requirements of the

organisation. The proposed project is expected to identify such requirements of

DoP related to costing system and devise a system to capture the necessary

data, do analysis and provide MIS for decision making. This customised system

shall be incorporated in the ERP package.

11

Section 6: Forms of Contract, II - General

Conditions of Contract, 1 - General Provisions, 1.1

(I), page 58

Personnel

If SI bring the foreign personnel for this project, are there any security restrictions /

clearance, data sharing limitations applicable?

No special provision exists for the proposed project in respect of security

clearances. However, information/ data shared during working of the project, can

not be shared with third party without written consent of the Department.

12

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point No. 4 - Page 46

AND Section 6:Forms of Contract, Part III - Special

conditions of Contract, SC Clause 10 (b) -

Timelines, page 77

Expected Timelines

Timelines under these 2 Sections are different. Please confirm which one

supersede the other. On page 49 the total duration of the project is 480 days and

on Page 77 the total duration of the project is mentioned as 360 days

The timelines for deliverables as metioned under Section 5 clause 4, page 46-49

shall have to be oberseved and same be also be read under Section 6, part III,

Special conditions, page 76-77.

13

Section 5: TERMS OF REFERENCE, Part 1 -

Objective and Scope of Work, Point No. 4 - Page 46

AND

Section 6:Forms of Contract, Part III - Special

conditions of Contract, SC Clause 10 (b) -

Timelines, page 77

Expected Timelines

There is a time lag in between the Completion of Consulting work and the Start of

Project Implementation. Please confirm, whether SI can demobilize the resources

during the time lag duration

After consultations with the Department, the resources may be demobilised for

the period, as agreed by the Department. But, the required resources should be

available, as and when required for implementation.

QUERY's RELATED TO FORMS OF CONTRACT