Supply of Radial Shaft Seal for LUH

Tender ref: RC/IMM/RSS/8422BOI/925/1

Technical Specification Compliance Sheet

Name of the vendor

Para Technical Specification Vendor Compliance

1 INTRODUCTION The proposed radial shaft seals will be employed in Light Utility Helicopter (LUH) Main gearbox (MGB) and Tail Gearbox (TGB) assembly. The seal should prevent the leakage of lube oil from MGB & TGB to outside and at the same time prevent entry of dust & other foreign objects inside MGB & TGB assembly.

2 DESCRIPTION The radial shaft seals will be used in the Main Gearbox and Tail Gearbox Assemblies of LUH. The detail of the seals is given in Table-1 and Table-2 respectively. The vendor proposal should include the seal drawing.

3 SEAL SPECIFICATION

3.1 SEALS USED IN MAIN GEARBOX OF LUH (See Table-1) Fil table in next sheet

3.2 SEALS USED IN TAIL GEARBOX OF LUH (See Table-2)- Fill Table in next sheet

4 APPLICABLE REGULATIONS FAR Part 27 : Airworthiness standards: Normal Category Rotorcraft MIL-STD-810G : Environmental test Methods RTCA-DO-160F : Environmental conditions & test procedures for airborne equipment MIL-PRF-23699 or DERD 2487/JSD OX-38 : Lubrication, Lubricating oil specification TSO-C150a : Aircraft Seal (if applicable)

5 QUALIFICATION TESTING

5.1 GENERAL The seals are required to be qualified / cleared for the qualification for the following demonstration: • Speed Capability • Pressure Capability • Temperature Capability. • Misalignment, Shaft Runout and Roundness. • Axial Location & Axial runout. • Vibration consideration after assembly. • Life calculation testing. In addition to above qualification tests / reports the seal must qualify following environmental tests

5.2 ENVIRONMENTAL TEST CONDITIONS Following Environmental Tests shall be conducted as per MIL-STD-810G. Any changes required in the test procedure shall be mutually agreed. If the unit is already certified for similar Para’s of earlier versions of MIL-STD-810G, they can be considered for acceptance by Hindustan Aeronautics Limited (HAL) and Indian Military Certification Agencies, provided they are equal to or more stringent than as called in MIL-STD-810G requirement & substantiated by submitting adequate supporting qualification documents and existing clearance for similar applications. Since LUH will have both Military & Civil version, the Civil Specification as per RTCA-DO-160F is also required to be complied. Wherever similar tests are called for, more stringent test of the two standards should be complied. Supplier shall provide a comparison statement on the requirements of the two standards w.r.t their stringent levels to HAL for its concurrence. Wherever similarity is claimed, support documents to be submitted for acceptance by Indian Military Certification Authority.

5.2.1 Fluid Susceptibility The shaft seal should be compatible with gearbox oil Turbonycoil-35M to specification DERD2487 / JSDO OX38 or Mobil Jet II to specification MIL-PRF-23699F/TN600. Oil contaminated during normal use in the helicopter shall not have any detrimental effect on life and performance of the shaft seal. The supplier shall also mention the method of cleaning and the time duration for periodical cleaning in order to have stipulated performance. Refer RTCA-DO-160F (section 11) / MIL-STD-810G (method 504.1) whichever is more stringent.

5.2.2 Temperature, Altitude & Humidity Susceptibility Overall operational temperature limits : - 45ºC to +150ºC Temperature limits for storage : - 54º C to 85ºC Operation at an altitude range of : - 500m to 7000m. Relative humidity up to 100% : As per MIL-STD-810G (Method 520.3) / RTCA-DO-160F (section 4 to 6) whichever is more stringent

5.2.3 Sand and Dust Resistance The tests for sand and dust resistance shall be in accordance with MIL-STD-810G (Method 510.5) or RTCA-DO-160F (section 12) whichever is more stringent.

5.2.4 Salt and Fog The tests for salt fog shall be in accordance with method 509.5 of MIL-STD-810G or RTCA-DO-160F (section 14) whichever is more stringent.

5.3 INTEGRATION TEST AT HAL (to be done by HAL)

5.3.1 Functional Test 10 hours of functional endurance test will be carried out on the MGB and TGB assemblies maintaining the oil sump temperature at different temperature (minimum of 85ºC and maximum of 150ºC) to check any leakages at seal interface. If the leakage at seal interface is found satisfactory (i.e., there is no leakage/seepage), seal is cleared for further tests. Vendor has to assist, whenever required for satisfactory conduction of the test and for improvements required if any, based on the integration test feedbacks.

5.3.2 5.3.2 Acceptance Load Test Load test of 03 hours and 02 hours block will be carried out on the MGB and TGB assemblies respectively. There should be no leakage/seepage at the seal interface. Vendor has to assist, whenever required for satisfactory conduction of the test and for improvements required if any, based on the integration test feedbacks.

6 RELIABILITY AND MAINTAINABILITY PARAMETERS Vendor to provide information/data/documents on the following: • Total storage life (in calendar period). • Total technical life in operating hours and calendar period (if applicable). • Component Maintenance Manual (covering Daily & Periodic inspection schedules). • Action to be taken after expiry of specified life. • Potential for further life extensions. • Storage requirement and storage servicing schedule. • MTBR (Mean Time Between Replacement). • Functional Hazard Analysis.

7 CERTIFICATION The supplier shall provide the following documents: • Description of the unit and detailed drawings. • Qualification & Certification type tests records with Test Schedule & Results. • Acceptance Test Procedure & Pre-installation Checks. • A release note (EASA FORM-1/FAA Form 8130-8 /Certificate of Conformance) from concerned authorities for use on helicopters for each unit delivered. • Declaration of Design and Performance (DDP). • Design Organization Interface Document (DOID) to be established between the vendor and HAL. (Civil requirement). • Airworthiness certificate by certification authority from country of origin.

8 TECHNICAL SUPPORT FOR CONTINUED AIRWORTHINESS Vendor to address and provide necessary details on the following: • The vendor has to provide the details of the special tools along with the procedures required for the installation and removal of the seals. It is the responsibility of the vendor to supply these special tools. • Technical support during prototype integration, bench testing, ground / flight-testing and certification with respect to resolving technical problems, snags/defects/failures observed during operation. • Vendor to provide detailed defect investigation reports on failures/defects reported during operation. • After certification on helicopter, vendor to provide update on any part number changes, Revision/Issue changes, Modification status etc. along with reason/justification and support documents such as ECN/SB/SIL/SL etc. as applicable. • Any improvement implemented due to technology up gradation, internal improvements etc. to be informed in advance for concurrence of HAL before implementation. • Issues regarding obsolescence and actions to overcome the same to be informed well in advance to HAL for supporting the existing fleet.

9 PRIOR EXPERIENCE Vendor should have developed/supplied similar items of same/similar/advanced specifications as given in the RFQ to reputed aerospace industries or organizations across the globe. The supplied components shall be used on aerospace platforms certified by any of the certification agencies like CEMILAC, DGCA, EASA, FAA etc. Details of the executed contracts should be provided to ascertain credentials.

Tender ref: RC/IMM/RSS/8422BOI/925/1

Technical Specification Compliance Sheet

Name of the vendor

TABLE-1 : SEALS USED IN MAIN GEARBOX OF LUH

SPECIFICATION DETAILS

RADIAL SEAL-1 RADIAL SEAL-2 Vendor Compliance

Material of Seal To be decided by Vendor

Material of the seal carrier/retainer Aluminium Alloy (HAL responsibility)

Material of the shaft Case Carburising Steel (Specification: ZFNL 9201/MDN 9201A)

Shaft Diameter / Seal Inner Diameter 28.0mm (h7) Shaft Roughness: Rz 1-3µm 50.0mm (h7) Shaft Roughness: Rz 1-3µm

Seal Outer Diameter 47.0mm 70.0mm

Seal Width 10.0mm 10.0mm

Shaft concentricity corresponding to the seal carrier bore

Direction of rotation See Figure-1, Figure-2 & Figure-3 See Figure-4 & Figure-5

Nominal Shaft Speed 12000 RPM 6000 RPM

Radial Force FR=30N FR=30N

Maximum Speed 122.5% of Nominal Speed

Type of Lube Oil Synthetic oil to specification: (i) JSD OX-38/DERD 2487 (ii) MIL-PRF-23699

Viscosity (at 1000 C) 7.5 cst / 5.5 cst

Temperature (Max.) 150°C

Average temperature 90°C

Min. outer temperature while starting -40°C

Maximum pressure 0.5 bar (gauge)

Oil level with respect to oil seal Below the seal centre axis or equal to the center axis of the seal

Quantity per Helicopter 3 2

TABLE-2 : SEALS USED IN TAIL GEARBOX OF LUH

SPECIFICATION DETAILS

RADIAL SEAL-3 RADIAL SEAL-4 Compliance

Material of Seal To be decided by Vendor

Material of the seal carrier/retainer Aluminium Alloy (HAL responsibility) Case Carburizing Steel (HAL responsibility)

Material of the shaft Case Carburising Steel (Specification: ZFNL 9201/MDN 9201A) Case Carburizing Steel (Specification: 16NCD13)

Shaft Diameter / Seal Inner Diameter 50.0mm (h7) Shaft Roughness: Rz 1-3µm 102.0mm (h7) Shaft Roughness: Rz 1-3µm

Seal Outer Diameter 68.0mm 122.0mm

Seal Width 9.0mm 10.0mm

Shaft concentricity corresponding to the seal carrier bore

Direction of rotation See Figure-6 See Figure-7

Nominal Shaft Speed 4003 RPM 2234 RPM

Radial Force FR=30N FR=30N

Maximum Speed 122.5% of Nominal Speed

Type of Lube Oil Synthetic oil to specification: (i) JSD OX-38/DERD 2487 (ii) MIL-PRF-23699

Viscosity (at 1000 C) 7.5 cst / 5.5 cst

Temperature (Max.) 150°C

Average temperature 90°C

Min. outer temperature while starting -40°C

Maximum pressure 0.5 bar (gauge)

Oil level with respect to oil seal Below the seal centre axis or equal to the center axis of the seal

Quantity per Helicopter 1 1

PART-IB - MAIN RFQ COMPLIANCE SHEET Tender ref: RC/IMM/RSS/8422BOI/925/1

QUOTATION REFERENCE:

Para No. Description Vendor's Compliance

1 GENERAL INFORMATION:

1.1 Hindustan Aeronautics Limited (HAL), a Navaratna Public Sector Undertaking is engaged in Design, Development, Manufacture, and Repair & Overhaul of Aircraft, Aero Engines, Helicopters, Avionics and Accessories (www.hal-india.co.in).

1.2 This RFQ deals with requirement of “RADIAL SHAFT SEAL FOR LUH" program.

2 SYSTEM REQUIREMENT DEFINITION

2.1 Technical requirement

2.1.1 The Technical Specification of the RADIAL SHAFT SEAL FOR LUH (hereinafter also referred as “System” based on context) shall be as per HAL document Ref: RC/LUH/TS/TS/116 Issue I Rev A dated 27.10.2022 enclosed as PART- I to this RFQ.

2.2 Documentation All documents shall be provided in line with Technical Specification Ref: RC/LUH/TS/TS/116, Issue I, Rev A dated 27.10.2022.

2.2.1 Based on design reviews, or problems noticed during integration and testing, if there is any need for modification/ change in the system to make it compliant to Technical Specifications and/or to make it fit for use shall be the responsibility of the vendor to carry out such modifications / changes and render technical assistance without additional cost to HAL. Vendor is required to note that product performance, weight, reliability and MTBF would be important consideration.

2.2.2 The system offered should be of the current design and should be maintained in service for a period of at least 30 years. In case a need arises on the vendor’s end to replace the system with a superior or an upgraded system for any reason including addressing obsolescence, vendor should take responsibility for offering such alternate system at prices not more than what are quoted against this RFQ.

2.3 Integration/ Certification requirements:

2.3.1 Vendor should supply System for integration into LUH during development phase as per schedule given below. Technical and Qualification Documentation, Ground Support Equipment, Special Tools (if any, required for equipment installation/removal, testing and maintenance) along with spares that are required to prove the system on LUH platform should be proposed by the vendor and deliveries are to match the requirements at various phases of the project.

2.3.2 Vendor should note that in the process of proving the system on LUH, necessary services such as Systems Engineering, Adaptations of Hardware and technical services may be required by HAL during the Integration and Ground and Flight evaluation of the system on LUH including training to HAL representatives to carry out such tasks. Vendor should provide technical assistance to HAL in these aspects.

2.4 Schedule of Deliverables: The proposed system is required by HAL in two phases as given below: Adherence to the required schedules shall be an important consideration for accepting or rejecting Bids. Minor deviations in this regard may be accepted by HAL based solely on its judgment and discretion.

2.4.1 Development Phase: During the development Phase, our requirement of units is as follows:

Sl No ITEM Quantity Delivery Date

1 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-1 01 Lot TO+3 Months TO: Placement of PO

2 RC/LUH/TS/TS/116/Seal-1 60 Nos

3 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-2 01 Lot

4 RC/LUH/TS/TS/116/Seal-2 40 Nos

5 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-3 01 Lot

6 RC/LUH/TS/TS/116/Seal-3 20 Nos

7 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-4 01 Lot

8 RC/LUH/TS/TS/116/Seal-4 20 Nos

The system shall be supplied as per technical specification. It is possible that the Bidder may be capable/ready to supply ahead of these schedules in which case the Order/Contract will include such accelerated schedules as mutually agreed. A single Order will be placed for the Development phase covering the period up to Certification of the system by the Airworthiness Authority. Although “numbers” is mentioned above, the Bidder should provide itemized list of all deliverables along with Part Nos. and respective quantities. Bidder should incorporate mutually agreed changes, if any (which will be known after fitment /usage of delivered units) arising out of initial integration and trials on LUH platform as a retro modification without additional cost. For the developmental units supplied by bidder, in case of any deviation in PI check values or any malfunction of the unit, rectification for the same to be performed by the vendor without any cost implications to HAL. Vendor to specify special tools & test equipment if any. All deficiencies in system (not meeting specification), which are noticed at any stage (including Production phase and post warranty period), and which are attributable to bidder should be rectified free of cost in all units/supplies.

2.4.2 Production Phase : The total production requirement is spread over a period of ~ 6 years after successful completion of development phase of project based on receipt of orders from customers. The tentative production program schedule is given below:

*Note i) There will be no single order covering the total production phase. Orders for production phase as above are subject to (i) Certification of the LUH by the Airworthiness Authority and (ii) receipt of orders from the HAL Customers. It should also be noted that the quantity ordered may be less than the numbers mentioned above either on yearly basis or in total. ii) In line with the above, the tentative schedule of deliveries in the table above will be used only for commercial evaluation on a uniform basis. Production phase requirements will be sourced through purchase orders to be placed from time to time taking into consideration Orders from customers, HAL’s production schedule and vendor’s supply lead-time. Accordingly, Vendor is required to indicate the lead time for supply of production units with reference to time of placement of production orders. iii) Seller should carry out Defect investigation and rectification /upgradation /qualifications of the unit without any additional costs, in case of premature failures at all phases of contract.

2.4.3 Adherence to agreed Development Plan/ Delivery Schedule: Preference will be for a proven system that can be customized to meet Technical Specifications of this RFQ rather than a system which has to be developed ab initio or which is primitive to start with and needs major development effort to bring it up to the required level of sophistication. Accordingly, the latter type of systems offered will be technically disqualified solely based on HAL’s assessment. Vendor is required to indicate development schedule (in the form of a Gantt chart) broadly in line with the schedules required as per this RFQ. While minor changes may be accepted based on HAL’s discretion, schedule deviations which could affect HAL’s schedule for Certification of the LUH will not be accepted. Based on the information in the technical bid, further information available and the level of readiness of the system offered, HAL will make an assessment whether the vendor is capable of meeting the development schedule

2.5 Product support during service life:

2.5.1 Vendor should supply recommended spares for operator level servicing and should carry out the necessary product support activities. Vendor should also recommend the list of test equipment/ fixtures and special tools required for servicing at HAL/ its customer bases.

2.5.2 Vendor should indicate lead time for supply of spares, test equipment, etc. and should authorize HAL for direct purchase from OEMs/Primary vendors of the spares, test equipment, etc.

3 VENDOR QUALIFICATION CRITERIA:

3.1 Bids are invited only from Class-I local supplier (means a Supplier or Service Provider, whose goods, services & works offered for procurement, has local content equal to or more than 50%) & Class-II local supplier (means a Supplier or Service Provider, whose goods, services & works offered for procurement, has local content of 20% or more but less than 50%). Bids from vendors other than Class-I or Class-II local suppliers will be summarily rejected.

3.2 Definition of Local content: Local content means the amount of value added in India (i.e. indigenous items/services added in the offered products/services/works) be the total value of the item offered (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties/IGST) as a proportion of the total value (excluding net domestic indirect taxes), in percentage.

3.3 The ‘Class-I & II local supplier’ should provide a “Self-Certification/ certificate from the statutory auditor or cost auditor based on the quoted value” (Formats placed at Enclosure-II) along with technical offer indicating that the item offered meets the minimum local content as mentioned above and provide the % of local content along with details of the location(s) at which the local value addition is made. It is mandatory to indicate minimum local content in ENCLOSURE-IA. A copy of ink-signed certificate should be uploaded along with technical bid in e-portal and original certificate should reach us within 15 days of due date of tender. The offer/bid received from vendors without indicating the percentage of local content will be rejected.

3.4 Purchase Preference, as detailed at Appendix-A, is applicable only to Class-I local supplier. In case of non-submission of ‘Self Certification/ certificate from the statutory auditor or cost auditor’ as stated above, the purchase preference shall not apply. The subject item falls under Indivisible category.

4 QUALITY REQUIREMENTS: All Quality requirements shall be as per the Technical Specification Ref: RC/LUH/TS/TS/116 Issue I REV. A date: 27.10.2022.

5 Bidder’s country which shares a land border with India:

5.1 Restrictions under Rule 144(xi) of the General Financial Rules (GFRs) issue by GoI, Ministry of Finance, Department of Expenditure (DOE). Bidders should refer to Appendix-C of these tender documents i.e., Clause regarding restrictions on procurement from a bidder of a country which shares a land border with India.

5.2 All the participating bidders have to mandatorily submit the both ANNEXURE-I A & I B relevant certificate (either Type-I or Type-II) as per format enclosed, at the time of submitting the technical bid along with their offer

6 GUIDELINES FOR SUBMISSION OF BIDS:Vendor should submit proposal in single bid format, technical bid and Commercial bid together (through HAL e-Procurement portal only). Accordingly, your proposal should cover the following: Technical Bid: Following documents must be submitted as part of the technical bid: Technical Proposal (also referred as Technical Bid) should include the following information.

6.1 Compliance Statements:

6.1.1 Compliance matrix confirming point-by-point compliance to all paras of this RFQ, compliance matrix against technical specifications at Part I and compliance matrix against Commercial terms and conditions at Part II, should be enclosed with the technical proposal.

6.1.2 Insufficient or incomplete details may lead to rejection of the offer. In respect of technical specifications, indication of “compliance”, “non-compliance”, or “partial compliance needs to be substantiated with details sufficient enough to enable comprehensive understanding

6.2 Development Plan with Schedule: Vendor to provide a Development Plan with Schedule, in case the System is to be developed or adapted, clearly indicating the intermediate milestones in the form of a Gantt chart.

6.3 Integrity Pact (IP):

6.3.1 Vendor should submit hard copy of Integrity Pact (either Omnibus IP or Standalone IP), in original, duly signed by authorized signatory and witness, in a sealed envelope. Bidders should submit IP on plain bond Paper. All pages to be initialed by Bidder/ authorized signatory. Formats for both Omnibus IP and Standalone IP are placed at Part-IV of RFQ. Vendor may select either Omnibus IP or Standalone IP for signing with HAL. In case, the vendor had already signed Omnibus IP with any divisions of HAL and the same is valid then they can enclose a copy of the same against this tender, instead of signing fresh Integrity Pact

6.3.2 The envelope, which contains the signed IP, should be marked as “Integrity Pact” indicating tender reference and due date and should reach us at the following address on or before the tender due date and time: Deputy General Manager (IMM)-RC, Rotary Wing Research & Design Centre, Hindustan Aeronautics Ltd. Vimanapura Post, Bangalore-560017, Ph :+91 80 2232 7253 Or alternatively the sealed cover with tender reference and due date containing the signed Integrity pact should be dropped in the tender box ( Rotary Wing Research and Design Centre) kept at Reception (VIP Gate of RWRDC& Production division) on or before the tender due date and time specified in tender. HAL will not be responsible for any transit/postal delay or delay due to any other reasons in receipt of hard copy of original signed IP. A copy of signed IP should also be scanned and attached with your technical bid, which has to be submitted online through e-Procurement portal

6.3.3 Entering into integrity pact without deviation from the specified format is preliminary qualification without which the bid is liable to be rejected without evaluation. Bidders who submit IP with deviation might at HAL’s discretion be given an opportunity to submit original signed IP without deviation within stipulated time limit as decided by HAL

6.3.4 In respect of IP and its monitoring, there would be Independent External Monitors (IEM) who will be appointed by the Central Vigilance Commission, a statutory body and not by HAL. The present IEMs are: Shri Gangaram Aloria, IAS(Retd.) e-mail ID: [email protected] Shri Sunil Kumar Bansal, IPS (Retd.) e-mail: [email protected] Shri Chaitanya Kumar Varma, CE&MES (Retd) e-mail ID: [email protected]

6.3.5 The signed IP will form part of the contract/purchase order, in the event of placement of order

6.3.6 All clarifications/query/status w.r.t tender & validity extension of tender should be forwarded to HAL only and not to the IEM except query related to IP. Signed IP in original should not be forwarded to the IEM.

6.4 Non-disclosure Agreement: Non-disclosure Agreement duly signed by the authorized signatory from the vendor’s side strictly as per the format enclosed at PART-IV of this RFQ should be submitted. If the vendor does not agree to any specific clause in the NDA, the same should be brought out in the Technical Bid for consideration of HAL. However, HAL reserves the right to accept or reject such proposed changes to the clauses of the NDA.

6.5 Support needed from HAL: Vendor needs to clearly define the information/ support needed from HAL for executing the proposed supply after signing of contract/ placement of PO. In case support is required from HAL, a Work Share Matrix clearly indicating the responsibilities of HAL and Vendor is to be attached. However, such support from HAL, other than as a facilitation of work, shall have no impact on the pricing of the bid nor shall it shift any of the vendor’s responsibilities to HAL.

6.6 Checklist: Vendor should attach duly filled check list as given in PART-V of this RFQ.

6.7 Price formats without figures in Technical Bid: In the Technical evaluation, there is a need to confirm whether the Bidder has quoted price details as per requirement. For this purpose, Bidder should include in the Technical Bid the Price Format (Part-III of the RFQ) after filling it up as per the following instructions. • Actual prices quoted by the Bidder SHALL NOT be filled in. • Instead, wherever price is quoted, it should be filled in as “Quoted”. If price is not quoted (because that cost element is not applicable) or if the quote is zero, then it should be filled in as “N/A”. It may be noted that if prices are included in the Technical Bid in contravention of the above, the Bid will be summarily rejected without giving any opportunity for rectification. Note: The bidder should upload Technical Bid in the form of documents mentioned above in the form of attachments (each attachment file not exceeding 5 MB) through HALs e-procurement portal.

7 COMMERCIAL REQUIREMENTS:

7.1 Prices: All the prices payable by HAL for Radial Shaft Seal FOR LUH should be given in the price format enclosed as PART-III of this RFQ. It should be complete in all respects. No subsequent addition/ alteration/ claim will be entertained over and above the quote, Prices Quoted should be FIRM AND FIXED till completion of supplies

7.2 Compliance to Commercial Terms and Conditions

Vendor is expected to comply with all the terms and conditions as given in PART-II of this RFQ. For other Commercial Terms & Conditions, in case the Bidder proposes alternative formulation for any clause, the same should be indicated clearly in the Bid. However, such non-compliances or partial/modified compliances should be kept to a bare minimum. In case proposed alternatives taken together negates or seriously compromises the basic nature of commercial engagement envisaged through this RFQ, then HAL at its sole discretion will be entitled to reject the Bid.

7.3 HAL’s Rights & obligations

7.3.1 Issuance of this RFQ shall not impose any obligation on HAL to place any Order on (or to sign any Contract) with any Bidder. HAL also reserves the right to cancel the RFQ process at any stage without assigning any reason.

7.3.2 HAL is under no obligation to meet or reimburse any cost incurred by or on behalf of Bidders in connection with responding to the RFQ or participating in any process related to this RFQ.

7.3.3 Validity of Prices/ Bids: All quoted prices and bids shall remain valid for a minimum period of 270 days from the closing date of this RFQ.

8 Technical Evaluation:

8.1 Technical bid opening: Technical bids submitted against this RFQ would be opened on next working day after the due date. Interested bidders may witness the bid opening online by logging into HAL e-Procurement portal.

8.2 All the Technical bids submitted by the vendors would be opened and examined for adherence/ compliance to the requirements as specified in this RFQ. In case of ambiguity or non-clarity in statements given by the vendors, HAL may seek information/ clarifications and/or seek demonstration, testimonials, means of compliance, etc. Only such offers that meet HAL requirements shall be short-listed for further commercial evaluation.

8.3 HAL reserves the right to call for a demonstration of the System being quoted or technical interactions to ascertain vendor’s competencies, availability of technical resources, past experience, credibility of claims made in the RFQ response, means/likelihood of compliance with technical specifications, etc. with any one or all vendors on no cost no commitment basis before opening of the commercial bids. If, based on demonstration or technical interactions as above, HAL Technical Evaluation Committee comes to a reasonable conclusion that the compliance to technical specifications or other claims made in the vendor’s bid are unlikely to be met in practice; the Bid shall be rejected as technically non-compliant.

8.4 Commercial Bids of bidders who do not qualify during Technical Evaluation will remain unopened and inaccessible to HAL or anyone else.

9 Commercial Evaluation

9.1 Commercial Bid Opening: Commercial bids of vendors whose technical bids have been found to be meeting HAL’s requirement would be opened online. The date and time of opening would be informed to all technically qualified vendors, who may witness the tender opening online by logging into HAL e-Procurement portal

9.2 Bid with lowest price arrived at based on the commercial evaluation criteria mentioned below conforming to the specification will be considered for placement of order

9.2.1 The tender will be evaluated on package-wise as per price bid.

9.2.2 For determination of comparative prices for commercial evaluation, the following steps would be applied • The delivery years, quantities and prices filled up in the price bid will be taken as the basis for commercial evaluation. • The conditions of the Public Procurement (Preference to make in India) policy will be applied on the basis of L-1 so determined to finalize the vendor on whom final Order will be placed after due processes including negotiations

9.2.3 The following loading factors will be considered for commercial evaluation:

9.2.4 Conditional discounts if offered in the Bid will not be considered in evaluation of tender.

9.2.5 Applicability of the Taxes (GST, etc) should be explicitly indicated in the Bid both in percentage terms and in absolute terms. In the absence of this specific input, the offered price would be considered as all-inclusive and no further claims related to taxes payable would be entertained later

9.2.6 The prices quoted will be evaluated on FOR HAL, Bangalore, basis

10 Exchange Rate Variation Vendors should note the following, if exchange rate variation is claimed on the quoted prices: i) Vendor should invariably specify the Import Content included in the quoted prices (all line items where import content is present) in terms of Foreign exchange as well as equivalent Indian Rupees In the absence of this input, it shall be construed that vendor shall not be claiming exchange rate variation (ERV) from HAL in the future in regard to the Order/Contract that might result from this RFQ. For Commercial evaluation, HAL will convert the foreign currency portion to Indian Rupees using exchange rates prevailing at due date of tender as per HAL’s policy. ii) ERV will be applicable only after coming into force of the Order/Contract resulting from this RFQ and only on those line items where quantum of Import content was indicated in the Bid. iii) After coming into force of the Order/Contract, for the purpose of making payment/deduction, the reference exchange rate adopted will be TT Selling Rate (of SBI Parliament Street Branch, New Delhi) prevailing as on the date of Bill of Entry. Accordingly the ERV will be computed with respect to the Base Rates prevailing at due date of tender as per HAL’s policy. iv) Vendor to provide all required supporting documentary evidence w.r.t. import content linked to HAL’s order and Bill of Materials to claim custom duty exemption ( if applicable) and exchange rate variations. v) For purpose of making ERV payment/deduction, actual value of import (to be supported by BOE, etc) or declared value of import in bidders quote whichever is lower will be considered for calculation of ERV based on TT selling rate on the date of BOE. vi) In line with the above, Exchange Rate Variation adverse to the vendor shall be paid by the HAL as addition to Invoice and Exchange Rate Variation favorable to the vendor shall be passed on to HAL as deduction from Invoice.

11 Additional Information:

i) The bidder should not indicate price details / indicate pricing aspects in technical bid. If bidder submit price bid / indicate pricing aspects in technical bid, the bid is liable for rejection and such bid may not be considered for further evaluation. ii) Bids received after the due date and time shall be summarily rejected. HAL reserves the right to reject incomplete tenders if the nature and extent of deficiencies preclude rectification of Bid through limited clarifications. iii) Successful vendor needs to take sufficient insurance (amounting to total order value) cover against the risks of product and civil liabilities in relation to equipment /product supplied by him. In the event of claims from any other party on any damages or deficient performance which are directly attributable to the vendor’s product, HAL would not be liable and would have the right to seek appropriate compensation from the vendor. iv) Proposals should be submitted through HAL’s e-procurement portal only on or before due date and time. Refer attached e-Tender terms for submission of online proposal (Annexure-2). Any clarifications on the tender, you may contact: Deputy General Manager (IMM) – RC Rotary Wing Research & Design Centre, Hindustan Aeronautics Limited, P.B. No: 1783, Vimanapura Post, BANGALORE – 560 017, INDIA Tel: +91-80-22327253/22311690 / 22323219 Fax: +91-80-22313184 / 22311747 E-mail: [email protected] Contact Person: Sri B N LAKSHMANA, Mob:+91 98454 26790 Alternate Contact Person: Sri. SUDHAKAR REDDY G R, Mob: +91 96204 30946, e-mail: [email protected] iv) Tender Documents: The bidders should download all tender documents directly from HAL e-procurement portal (http://eproc.hal-india.co.in or link to e-Procurement through www.hal-india.co.in). No Tender fee is applicable.

PART-II ENCLOSURE TO TENDER NO. RC/IMM/RSS/8422BOI/925/1

COMMERCIAL TERMS & CONDITIONS

QUOTATION REFERENCE:

PLEASE INDICATE YOUR RESPONSE/ COMPLIANCE/ ACCEPTANCE TO THE FOLLOWING TERMS

Sl No. Description Vendor’s Compliance

1 IMPORTANT TERMS AND CONDITIONS

1.1 The tender is issued through HAL E-procurement portal (eproc.hal-india.co.in) and vendor has to submit their offer through E-portal mode only.

1.2 Vendors should quote for all the line items mentioned in the Tech Specification as called for in the price bid. Incomplete offers generally will not be considered for evaluation. In case for some item/s if offer is not submitted, the specific reason to be indicated by the respective vendor. Acceptance or otherwise of such incomplete offer, will be at the discretion of HAL based on the merits of the case.

1.3 When submitting your offer, please ensure that you have responded categorically against each technical / commercial terms. Your compliance / acceptance to each of our terms should be indicated clearly. In case, HAL terms and conditions are not acceptable, you may quote counter terms and conditions. When counter terms and condition of business have been offered by the tenderer, HAL shall not be deemed to be governed by such terms and conditions unless written acceptance thereof has been given by HAL. Any technical clarifications required may be obtained before submission of quotations. No ambiguity / request for changes in price/scope will be entertained after submission of quotation.

1.4 Procedure for obtaining Digital Signature Certificate (DSCs), its installation, procedure for Log in using DSCs and System Requirements documents are available in our e-portal website In case bidders have any problem during download of Tender Documents and Upload of their Bids, they may directly approach HAL Help Desk 24/7 through following. Email: [email protected] Ph: 080-22323697 / 98 You may also put a copy to us on email: [email protected] for follow up at our end.

1.5 Integrity Pact: (i) Integrity Pact (IP) as per HAL format enclosed shall be duly ink signed by the bidder along with the witnesses. Failure to sign Integrity Pact as per HAL’s standard format may lead to rejection of offer. In case of submission of offer through e-portal, scanned copy of the signed Integrity Pact also need to be submitted along with your offer and in parallel, the hard copy of original ink singed IP should reach HAL by post. The submission of Integrity Pact without deviation is a mandatory requirement (ii) It is requested to forward the original ink signed Integrity Pact in duplicate (as per HAL format enclosed with RFQ) duly initialled on each page to the following Contact Person and Address: DGM(IMM) RWRDC Hindustan Aeronautics Limited, Marathahalli Post, Bangalore - 560037 Ph: 080 - 2232 7353

(iii)In respect of IP and its monitoring authority i.e. the Independent External Monitor (IEM), who is appointed by HAL, in line with the communication received from Central Vigilance Commission (CVC). The present IEM/s is/are: 1. Shri Gangaram Aloria, IAS(Retd.) e-mail ID: [email protected] 2. Shri Sunil Kumar Bansal, IPS (Retd.) e-mail: [email protected] 3. Shri Chaitanya Kumar Varma, CE&MES (Retd) e-mail ID: [email protected] Further, it may be noted that only integrity Pact related issues should be forwarded to IEM. For all other clarifications on specific tender related queries the undersigned officer of HAL need to be contacted. (iv) The bidder may approach the IEM nominated only for IP related issues. Any other specific clarifications/query/status with reference to tender and request for validity, extension of the tender etc., should be forwarded to concerned tender issuing HAL Officer. (v) Both Omnibus IP and Standalone IP formats are enclosed with RFQ/RFP. In case if Bidder has already signed Omnibus IP with any other Divisions of HAL and validity of the same exists for this contract period, then Bidder may forward the copy of the same. If Omnibus IP is not signed, then Bidder may choose to execute either of the IP formats i.e. Omnibus IP or Standalone IP.

2 Restrictions on procurment from bidders from a country which shares a land border with India:

2.1 Bidder’s country which shares a land border with India: Any bidder from a country, which shares a land border with India will be eligible to bid in this tender only if the bidder is registered with the Competent Authority (i.e. the registration committee constituted by the Department for Promotion of Industry and Internal Trader (DPIIT). However, the bidders from those countries (even if sharing a land border with India) to which the Government of India has extended lines of credit or in which the Government of India is engaged in development projects are not required to register with Competent Authority and will be eligible to bid in this tender.

2.2 All the participating bidders have to mandatorily submit the relevant certificate as per format attached as ANNEXURE-II A (either Type-I or Type-II), at the time of submiting the Technical bid along with their offer.

2.3 Bidder from a country, which shares a land border with India, for the purpose of this Order means:- i) An entity incorporated, established or registered in such a country; or ii) A subsidiary of an entity incorporated, established or registered in such a country; or iii) An entity substantially controlled through entities incorporated, established or registered in such a country; or iv) An entity whose beneficial owner is situated in such a country; or v) An Indian (or other) agent of such an entity; or vi) A natural person who is a citizen of such a country; or vii) A consortium or joint venture where any member of the consortium or joint venture falls under any of the above.

2.4 Unless otherwise stipulated in the Contract, country of origin of ‘Services’ and related ‘Goods’ under the contract shall have their origin in India or other countries and must conform to the declaration, made by the Supplier in its bid regarding but not limited to any restrictions on certain countries with land-borders with India

2.5 The successful bidder shall not be allowed to sub-contract works to any contractor from a country, which shares a land border with India unless such contractor is registered with the Competent Authority.

3 Delivery and Passing of Property & Risk:- Delivery and Passing of Property & Risk shall be on F.O.R, RWRDC-HAL basis.

4 Delivery Period :Supplier should stipulate in terms of months from ‘T0’ and the delivery schedule should be adhere to. Supplier should also indicate in the form of a bar chart indicating the details of activities for the elements identified in the cost format and date of completion should also be attached with the quotation.

4.1 Bidders to indicate the Delivery Lead time for Development Phase from T0:

4.2 Bidders to indicate the Delivery Lead time for Production Phase from T0:

5 Validity of quote:- Quote should be valid for 270 days from the closing date of the present RFQ.

6.1 Vendor should fill in the Price Format downloaded from e-procurement portal. Prices should not be indicated in any other places. It should be complete in all respects. No subsequent addition/ alteration/ claim will be entertained over and above the quote. Offers without complete information and pricing will be treated as incomplete and will not be considered for further evaluation.

6.2 Price quoted should be on F.O.R. Destination basis, for delivery at HAL Stores inclusive of all charges including transit insurance.

6.3 Indian Bidder should quote in Indian Rupees only and payment will be made in Indian Rupees. Offers from Indian Bidders quoting in Foreign currency will not be considered for evaluation.

6.4 Bidders should clearly mention whether the prices hold good when the full quantity of enquiry is not ordered but only a part of it. Unless otherwise mentioned, it would be assumed that the rates hold good even when lesser quantities than those enquired of are ordered. Any increase in prices at a later date for ordering lesser quantities will not be agreed to.

6.5 The contract prices will be firm and fixed for Development Phase as per contract terms till execution of contract and exclude subsequent claims or price increases of any kind.

6.6 Prices for Series Production Phase (SP): Bidders should Indicate the prices considering expected year of delivery as indicated in Price Format / Price Bid (Part-III). However, if there is any delay by Vendor for Development and Certification of the ordered/ supplied items in development order beyond agreed delivery period, then the base level price quoted for Series Production will be extended for ordering without any escalation for year of ordering after certification. Bidders are also may also indicate applicable annual escalation rate in percentage for the deliveries beyond 2030 on the base year price of 2030.

6.7 IMPORT CONTENT:Vendors should note the following, if exchange rate variation is claimed on the quoted prices: In case the item / product offered by Indian vendor has import content, then the value of import content shall be indicated in the quotation (in FE / INR as the case may be).

6.8 Date of Reckoning of Exchange Rate Variation:

If the products/items/materials quoted by the Indian vendors involves import content, then the value of import content needs to be indicated in the offer (in FE). Further, vendor should indicate whether Exchange Rate Variation (ERV) is applicable on the FE content declared by the vendor. If ERV is applicable, ERV reckoning date shall be the last date of submission of commercial bids (i.e. due date of the tender). For purpose of making ERV payment, actual value of import (to be supported by BOE, etc.) or declared value of import in bidders quote whichever is lower to be considered for calculation of ERV based on TT selling rate on the date of BOE. Exchange rate variation on the higher side, shall be paid by the HAL and similarly any exchange rate variation on lower side i.e. price reduction, to be passed on to HAL.

7 Payment Terms:- For supply of items: 100% payment will be made within 30 days after delivery of items and acceptance of items at our Stores. For NRE & Testing charges etc : 100% payment within 30 days by way of NEFT / RTGS transfer after successful completion and certification duly signed by HAL & vendor for the respective services / NRCs. All payments will be done by way of NEFT / RTGS/ SWIFT Electronic Payment remittance mode. For the purpose of making payments, vendor to provide the following; a) Original Ink signed Commercial Invoice, b) Certificate of Conformance & Release Note like DGCA Form CA-1 etc., as applicable c) Acceptance test report (ATR) for system or its components, spares as applicable. d) Any other documents specifically mentioned in the Purchase Order.

In case, the vendor does not accept the above payment terms and proposes alternative terms then HAL will appropriately adjust the quoted prices to account for the effects of the differences in payment terms. Although the exact adjustment will differ on a case by case basis, the following adjustments will mandatorily be made for making all the bids strictly comparable independant of the actual payment terms quoted by bidders. i) In case of Letter of credit, the estimated bank charges for operating the LC will be added to the quoted price. ii) The effect of time value of money arrising out of differing payment terms will be computed using an appropriate discount rate and will be added to the quoted price.

8 For MSMEs & StartUps: For successful MSME / startup vendor, 15% (of the basic price) interest free Advance may be payable against submission of Bank Guarantee of equivalent amount and balance 85% shall be paid within 30 days of receipt and acceptance at our stores. In case advance is not sought, 100% payment will be made within 30 days of receipt and acceptance at HAL stores. In cases of MSEs, vendor to indicate whether they are owned by SC / ST Entrepreneur / Women Entrepreneur HAL is registered on TReDS platform (Trade Receivable Discounting Systems), as being promoted by GOI directives. It is suggested that all the MSME Vendors to take note of the same and consider for registration on any TReDS platform and avail the platform services which is being made available as per Government initiative.

9 Taxes / Duties: Applicable for Supply of Goods & Services: Indian vendor has to indicate the applicable GST along with relevant HSN code in the price bid. In case, the price bid does not contain the GST elements it would be treated that the indicated price is inclusive of all applicable GST elements.

10 Goods and Services Tax (GST):

10.1 GST Registration Status:

All the bidders/ Bidders should ensure that they are GST compliant and their quoted tax structure/ rates as per GST Act/ Rules. Bidder should be registered under GST and furnish GSTIN number and GST Registration Certificate in their offer unless they are specifically exempted from registration under specific notification/ circular/ section/ rule issued by statutory authorities.

10.2 GST Registration Number (15-digit GSTIN):

10.3 Composition scheme:

If the Bidder has opted for a composition levy under Section 10 of CGST, he should declare the fact while bidding along with GSTIN and GST registration certificate.

10.4 Exemption from Registration:

If a bidder is not liable to take GST registration, i.e., having turnover below threshold, he shall submit undertaking/indemnification against tax liability. Bidder claiming exemption in this respect shall submit a valid certificate from practising Chartered Accountant (CA)/ Cost Accountant with Unique Document Identification Number (DIN) to the effect that Bidder fulfils all conditions prescribed in notification exempting him from registration. Such bidder/ dealer shall not charge any GST and/ or GST Cess in the bill/ invoice. In such case, applicable GST shall be deposited under Reverse Charge Mechanism (RCM) or otherwise as per GST Act by the Procuring Entity directly to concerned authorities. Bidder should note that his offer would be loaded with the payable GST under the RCM. Further, Bidder should notify and submit to the Procuring Entity within 15 days from the date of becoming liable to registration under GST.

10.5 HSN Code and GST Rate:

(i) HSN (Harmonized System of Nomenclature) code for the goods provided in this Tender Document is only indicative. It shall be the responsibility of Bidder to ensure that they quote the exact HSN Code and corresponding GST rate for the goods being offered by them.

(ii) As per the GST Act, the bid and contract must show the GST Tax Rates (and GST Cess if applicable) and GST Amount explicitly and separate from the bid/contract price (exclusive of GST). If the price is stated to be inclusive of GST, the current rate included in the price must be declared by the bidder.

(iii) If a Bidder asks for GST (and GST Cess if applicable) to be paid extra, the rate and nature of such taxes applicable should be shown separately. Bidders should quote 'GST' if payable extra on the total basic rate of each cost element and quote GST in ‘%' inclusive of cess.

(v) The supply of commodities or services or both, if imported into India, shall be considered as supply under inter-state commerce/ trade and shall attract integrated tax (IGST). The IGST rate and GST cess shall be applicable on the ‘Custom Assessable Value’ plus the ‘Basic Customs duty applicable thereon’.

10.6 TDS for GST: Applicable TDS as per the prevailing guidelines of Government of India will be deducted while making payment. Under section 51 certain percentage of GST i.e. @ 2% of GST (2% IGST (for Interstate) / 1% CGST + 1% SGST for Intra State) to be deducted by the recipient if the contract value is more than Rs.. 2,50,000. TDS will be deducted when • Supplier, place of supply and recipient are in the same state • Supplier as well as the place of supply are in different states TDS will not be deducted if Supplier as well as the place of supply are in same State and the recipient is located in different State . TDS will be deducted at the time of payment or entry on books whichever is earlier.

11 Tender Evaluation:

11.1 The tender will be evaluated on package-wise considering Development Phase and Prodcution Phase prices as indicated in Main RFQ.

11.2 Bid with lowest price conforming to the specification will be considered for placement of order.

11.3 Conditional discounts will not be considered in evaluation of tender.

11.4 In respect of two bid system, technical bid will be opened on the tender opening date. After technical evaluation, the Commercial bids of those bidders who are technically acceptable will be opened.

11.5 Applicability of the Taxes (IGST/CGST etc.) should be explicitly indicated by the bidder in his response either in percentage or in absolute terms. In the absence of this input the offer would be considered all inclusive.

12 TECHNICAL EVALUATION:

Technical bids submitted by the vendors would be opened and examined for adherence/ compliance to the requirements as specified in this RFQ. In case of ambiguity in statements given by the vendors, HAL may seek information/ clarification from any or all the vendors. Only such offers that meet HAL technical requirements shall be short listed for further commercial evaluation. HAL’s discretion in this regard is absolute.

13 COMMERCIAL EVALUATION: The commercial evaluation shall be carried out based on the total price as indicated at price format For comparison purpose the prices quoted by the vendors would be loaded with applicable Indian taxes and duties, etc. as applicable at the time of technical bid opening to arrive the total landed cost to HAL. For comparison purpose the quotes indicated therein might be adjusted for non-compliances or partial compliances of commercial terms and conditions as mentioned at appropriate places in this RFQ.

14 Product Support/ Obsolescence: Considering that the requirement is spread over years, it is requested to ensure that there should not be any obsolescence issue not only in terms of items but in terms of technology also in the next 30 years. In case of obsolescence, bidder should intimate HAL at least 3 years in advance about obsolescence and should also absorb the cost for overcoming the obsolescence and provide continuous support for the next 30 years. HAL may be requiring various spares for the offered system/item in future. Exact requirement for the spare requirement will be intimated separately. Bidder to confirm that the cumulative price of all spares of item/system should not increase the unit cost of the item/system.

15 Warranties:- Vendor warrants as follows: i) All items delivered are free from defects in materials and workmanship. ii) All items delivered are in conformance to the specification and are fit for the intended purpose. iii) It shall be ensured that HAL shall have clear and undisputed title to the goods supplied under the contract.

16 Warranty Period: Warranty shall be for a period of 12 calendar months, after the goods have been taken over by HAL, the contractor shall be responsible for any defects that may develop due to faulty materials, design or workmanship and shall remedy such defects at his own cost when called upon to do so by HAL who shall state in writing in what respect the portion is faulty. If it becomes necessary for the contractor to replace or renew any defective portion of the goods the contractor shall make such replacement or renewal without any extra cost to HAL. During warranty period item shall be replaced/repaired free of cost including any to & fro freight/insurance involved. Supplier shall attend to warranty calls within 48 hours notice.

17 Post-Warranty Service: Arrangements for after sales service and maintenance (authorized service centre) in India on site during warranty & post warranty period should be clearly indicated providing with name, address, phone, Mob no, email Id of the contact person, infrastructure along with spare parts inventory held by your Authorized Technical Service Center. The Vendor to indicate the validity period of authorization for the technical service center

18 Packing:- Each item / deliverable will have to be packed in such a manner as to avoid damage during transit, handling, etc., and damage /deterioration due to climatic conditions. Batch number and date of manufacture & identification details and handling instructions should be printed / written on labels of the deliverables.

19 Receipt & Despatch: The Vendor is responsible for obtaining a clear receipt from the Transport Authorities specifying the goods dispatched. He will not book any consignment on a said to contain’ basis. If he does so, he does it on his own responsibility. HAL will take no responsibility for short deliveries or wrong supply of goods when the same are booked on said to contain’ basis. HAL shall pay for only such stores as are actually received by them in accordance with the contract

20 Quantity: a) The quotation must be in the unit in which the quantity is indicated in the enquiry. If it is otherwise, conversion data must be furnished. b) HAL reserves the right to order quantity less than indicated in the enquiry/ quoted for by bidder, at the prices quoted, without any reference to the bidder.

21 Quality & Workmanship: a) Generally the stores shall be of the best quality and workmanship. Contractor shall comply with the contract in all respects be to the satisfaction of HAL. Where tenders are called for in accordance with ‘particulars’, the contractor’s tenders to supply in accordance with such `particulars’ shall be deemed to be an admission on his part that he has fully acquainted himself with the details thereof and no claim on his part which may arise on account of non-examination or insufficient examination of the ‘particulars’ will in any circumstances be considered. The contractor shall supply the stores in accordance with the ‘particulars’ unless any deviation is authorised as an exception expressly specified in the Purchase Order. b) The Stores/Goods supplied shall conform to the standards, if mentioned in the Technical Specifications, or, where no applicable standard is mentioned, to the authoritative standards appropriate to the Goods’ country of origin. Such standards shall be the latest issued by the concerned institution.

22 Requirements of ISO 14001:2015; Environmental Management System (EMS): I. Information about potential significant environmental impacts associated with transportation, delivery, use, end-of-life treatment and final disposal of its products and services may be provided II. It is desired that Environmental Friendly Materials, Systems and Processes are used with the lifecycle perspective to have minimal impact on the Environment while delivering the product/service

23 Requirements of ISO 45001:2018 Standard: The vendor/Supplier/ contractor shall ensure requirements with respect to ISO 45001:2018 standard guidelines clause A 8.1.4. This includes equipment’s, installations and materials are safe for use by workers as intended by ensuring: -equipment is delivered according to specification and tested to ensure it works as intended -installations are commissioned to ensure they function as designed -materials are delivered according to their specifications -any usage requirements, precautions or other protective measures are communicated and made available (E.g. Safety instructions, Hazard communication Symbols, SDS, Etc.)

24 INSPECTION-QUALITY ASSURANCE – ACCEPTANCE:

24.1 All Technical Documents related to Certification, although not expressly covered in the Tender, but become necessary for certification will have to be provided by the vendor free of cost. Details of the documents to be provided will be discussed mutually. All documents shall be in English language.

24.2 Airworthiness certificate and other related certificates issued by government certification agencies or other authorized agencies need to be supplied along with all deliverables made under the contract.

24.3 HAL will carry out inspection in its premises as per the supporting documents provided by the Vendor. Deviations/Defects noticed on inspection will be intimated to the Vendor for free replacement/rectification action as necessary. Acceptance of the deliverables will be issued by HAL only after all such deviations and defects are eliminated by the vendor. If any stores are rejected, vendor to re-submit stores in replacement of those rejected within a time specified by HAL, the vendor bearing the cost of freight in such replacement without being entitled to any extra payment:

24.4 Stores/ Goods supplied shall be of the best quality and workmanship. Vendor shall comply with the contract in all respects be to the satisfaction of HAL. Where tenders are called for in accordance with ‘particulars’, the contractor’s tenders to supply in accordance with such `particulars’ shall be deemed to be an admission on his part that he has fully acquainted himself with the details thereof and no claim on his part which may arise on account of non-examination or insufficient examination of the ‘particulars’ will in any circumstances be considered. The vendor shall supply the stores in accordance with the ‘particulars’ unless any deviation is authorised as an exception expressly specifi ed in the contract. The Stores/ Goods supplied shall conform to the standards mentioned in the Technical Specifi cations, or, where no applicable standard is mentioned, to the authoritative standards appropriate to the Goods’ country of origin. Such standards shall be the latest issued by the concerned institution.

24.5 Vendors need to : - follow a quality management system; - use HAL designated or approved external providers, including process sources (e.g., special processes); − notify HAL of nonconforming processes, products, or services and obtain approval for their disposition; − prevent the use of counterfeit parts: The Vendor shall plan, implement, and control processes, appropriate to the organization and the product, for the prevention of counterfeit or suspect counterfeit part use and their inclusion in product(s) delivered to HAL. − notify HAL of changes to processes, products, or services, including changes of their external providers or location of manufacture, and obtain the HAL’s approval; − flow down to external providers applicable requirements including HAL requirements; − provide test specimens for design approval, inspection/ verification, investigation, or auditing; − retain documented information, including retention periods and disposition requirements; - to ensure that their persons are aware of: their contribution to product or service conformity their contribution to product safety the importance of ethical behaviour

24.6 HAL or its customers and regulatory authorities shall have the right to access to the applicable areas of all facilities of vendor, at any level of the supply chain, involved in the order / contract and to all applicable records.

25 Inspection, Consequences of Rejection: The goods on receipt in HAL will be subject to inspection and tests, if necessary and HAL inspector’s decision as regards acceptance/rejection of goods shall be final and binding between the parties. (In case of Plant & Machinery, goods shall be finally inspected & accepted only after successful commissioning) If any stores are rejected, then HAL shall be at liberty to: a) Either: i) Allow the contractor to re-submit stores in replacement of those rejected within a time specified by HAL, the contractor bearing the cost of freight in such replacement without being entitled to any extra payment, (or) ii) Buy the quantity of stores rejected or other of a similar nature elsewhere at the risk and cost of the contractor without effecting the contractor's liability as regards the supply of any further consignments due under the contract, (or) (iii) Terminate the contract and recover from the contractor the loss HAL may thereby incur. The contractor shall not be entitled to any gain on the repurchase,

Any stores rejected by HAL’s Inspector must be removed by the contractor within 14 days from the date of receipt of intimation of rejection and at his own cost, failing which the contractor shall be liable to pay storage charges at 1% for each day of delay on the invoice value of the stores. If the stores are not removed within a month from the date of intimation of rejection, the stores will be liable, to be sold by HAL at the contractor’s risk and responsibility and the proceeds adjusted towards storage charges. c) In case any payment is made against delivery and it is found that the supplied item is rejected during inspection/commissioning, contractor will be required to choose any one of the following options to collect the rejected item for replacement: i) Refund the amount paid and collect the item for replacement. ii) Submit a Bank Guarantee for the amount already paid and collect the item for replacement. iii) Bring the replacement item to HAL and collect the rejected item.

26 Supply of Alternative Item:

In case bidder is quoting for an alternative part number it should be confirmed that the offered part is fully interchangeable with the required part. Applicable descriptive literature/ catalogue if any may please be enclosed by the bidder with offer (at least two copies).

27 Modification: Modifications, updates, etc. done to the hardware, software or documentation related to the deliverables under the contract at any point of time during or after the validity of the contract shall be promptly intimated to HAL for ensuring that such changes are incorportaed in the products delivered under this contract as well.

28 Language: All correspondence between the Parties, as well as all documentation, manuals, software listings and other writings, in connection with this Contract shall be in the English Language.

29 Shelf life: Where stores offered have a limited shelf-life, kindly indicate the life involved and confirm that in the event of an order from us, only newly manufactured stores with the maximum possible shelf-life at the time of dispatch will be offered for shipment. In respect of rubber items such as seals etc., having cure date, the item should not have been manufactured earlier than 6 months of dispatch.

30 Liquidated Damages: In the event that any supply under the PO/contract is delivered later than agreed schedules in the PO/contract, liquidated damages will be payable / deducted from Invoice equal to 0.5% for every week of delay or part thereof on the delayed portion of the order subject to a maximum of 10% of the value of the delayed item. In case of bidders not agreeing for LD clause or willing to accept a maximum percentage which is less than 10%, then, 10% of the quoted price or the difference in value between 10% of the price and the maximum agreed by the vendor will be added to the actual quote submitted by the vendor for comparision with other bidders in order to determine the lowest bidder.

31.1 Please indicate approximate net weight of each of the item and gross weight and dimension of the package to enable HAL to determine the mode of dispatch.

31.2 Please indicate in your tender, whether stores newly manufactured are offered. Where newly manufactured stores are offered and on inspection it is found that reconditioned stores or parts have been used, such stores will be rejected at the contractor’s risk and expense.

31.3 Vendor should confirm that they are the original manufacturer of the stores referred to in this contract and has not engaged any individual or firm whether Indian or foreign whatsoever, to intercede, facilitate or in any way to recommend to the Government of India or any of its functionaries, whether officially or unofficially, the award of the contract to the seller nor has any amount been paid or intended to be paid to any such individual or intended to be paid to any firm in respect of any such intercession, facilitation or recommendation, vendor accepts that if it is established that the present declaration is in any way incorrect and if at any later stage it amount/commission to such individual/firm, vendor will be liable to pay the similar amount to HAL for engaging such individual/firm and making the payment as commission. In addition, vendor will also be debarred from entering into any supply contract with the Ministry of Defence, Government of India for a minimum period of 5 years. Vendors shall also consider cancellation of the contract without any entitlement or compensation to vendors who shall also be liable to refund all payments made by HAL in terms of the contract along with the interest at the London Inter-Bank Offer Rate (LIBOR).

31.4 The supplier should ensure that manufacturer batch no. is indicated on all the materials supplied.

31.5 Vendor shall provide the information about potential significant Environmental impacts associated with transportation, delivery, use, end-of-life treatment and final disposal of the products and services.

31.6 It is desired that Environmental Friendly Materials, Systems and Processes are used with the life cycle perspective to have minimal impact on the Environment while delivering the product / service.

31.7 HAL reserves the right to cancel the tender without assigning any reasons thereof. The decision of HAL is final in this regard.

31.8 Any order, resulting from the enquiry, shall be governed by the General Terms and Conditions of Contract of HAL and any party quoting against this enquiry shall be deemed to have read and understood these terms and conditions and to have quoted subject to these terms and conditions (Enclosed).

31.9 When counter terms and conditions have been offered by a tenderer, HAL shall not be deemed to be governed by such terms and conditions unless specific written acceptance thereof has been given by HAL.

31.10 Any terms & conditions which has not been the part of the bid or Purchase Order, if put forward in subsequent correspondence, shall not be considered by HAL.

31.11 Disregard of any instructions, may result in your offer being ignored.

31.12 Canvassing by tender form, including unsolicited letter on tender submitted or post tender corrections shall render their tenderers liable for rejection.

32 Deliveries, Consequences of Breach:

The date of delivery stipulated in the Purchase Order shall be deemed to be the essence of the Contract, and delivery must be completed on or by the dates mentioned in the Purchase Order or the tender. Should the Vendor fail to deliver the stores or any consignment thereof within the period prescribed for such delivery, HAL shall be entitled at their option: a. To recover from the Vendor as per liquidated damages, and not by way of penalty, a sum of 0.5% of the price of any stores which the contractor has failed to deliver as aforesaid, for each week or part thereof during which the delivery or such stores may be in arrears subject to a maximum of 10% of the price of the stores in default (or) b. To purchase elsewhere, with or without notice to the Vendor on the account and at the risk of the Vendor, the stores not delivered or others of a similar description (where other exactly complying with the particulars are not available), HAL’s decision in this respect will be final (or) c. To terminate the contract in the event of action being taken under Para – (a) & (b) above, the Vendor shall be liable for any loss which HAL may sustain on the account, but the Vendor shall not be entitled to any gain on repurchases made against default.

33 EXIT CLAUSE Exit criteria: The contract/order may be terminated under the following circumstances: i. In the event of unsatisfactory performance by the Seller during the contract period, or any of the information provided by the Seller is found to be untrue, or Seller is found to have attempted to influence any person involved with the contract through unethical means, the contract shall be terminated with three month’s advance notice without any financial implication to Buyer. Notwithstanding the foregoing, in cases where it is found that a Seller has engaged in unethical practices, they shall be barred from participating in the future contracts with HAL for a period of three years. ii. If there is change in Buyer requirement, contract shall be terminated with three months advance notice. The liability of Buyer in this case will be agreed mutually. In the event of termination of contract by either party, the Seller shall ensure the following: a) IPR’s are transferred to Buyer to enable Buyer to proceed on the work with other Seller. Seller also will render all assistance till the other Seller fully takes over the balance work. b) Transfer title and deliver all or any part thereof of the supplies, materials, work-inprogress, finished Products, Tooling, drawings and data produced or acquired by Seller specifically for the Product being terminated. c) Supply of products and its components / spares at least for a period of two years from the date of such termination. iii. The Seller is declared bankrupt or becomes insolvent. iv. The delivery of material is delayed due to causes of Force Majeure by more than six months). v. Based on the decision of the Arbitration Tribunal.

34 Termination for Default of Seller or for other reasons: HAL shall have the right to short close present Contract in part or in full by giving 1 month prior notice to the Supplier, in any of the following cases:- a) The work is delayed or cancelled for causes attributable to force majeure. b) The requirement is withdrawn by HAL’s Customer. c) The Supplier is declared bankrupt or becomes insolvent. d) It is noticed that the firm has utilized the services of any agent to get the resulting Order and paid any commission to such agent. e) As per decision of the Arbitration Tribunal f) In case any part of the Order is subcontracted by the Supplier without prior permission of HAL. g) If the performance of the Supplier is not found satisfactory during the execution of work. In any of the above stated case, no claim of damage etc., by the Supplier will be allowed.

35 INSOLVENCY: Supplier enters into liquidation, whether compulsory or voluntary (other than amalgamation or reconstruction with another party taking over all its rights as well as commitments) or becomes insolvent or suffers a receiver of the whole or part of its asset to be appointed, i) Shall forthwith notify the same to HAL and the HAL shall have the right without prejudice to his other rights or remedies to terminate the unexecuted part of this Contract. ii) In such an event, HAL shall become entitled forthwith to get the refund within 30 days of all the advance payments received by Supplier and expenditure incurred by as a part of its obligations under this contract it has not fulfilled. In such an event if applicable, Supplier is liable for return of any materials/items (including drawings, designs etc) to HAL, which are held at his end as a part of the obligations under this contract

36 Indemnity against Patent rights:- The successful bidder/Supplier shall defend, indemnify and hold HAL harmless from and against all actions, causes of action, liabilities, claims, suits, judgment, liens, awards, damages of any kind and nature whatsoever and expenses and costs of litigation to the extent such claims arise out of infringement of any IPR, patent, copyright, trademark or involve wrongful use of trade secret or confidential information or negligence attributable to the Supplier

37 Appropriation: Whenever under this contract any sum of money is recoverable from any payable by the contractor, HAL shall be entitled to recover such sum by appropriating in part or whole by deducting any sum then due or which at any time thereafter may become due to the contractor in this or any other contract entered by HAL as a whole its Divisions and Branch Offices etc., held by him alone or in partnership with others. Should this sum be not sufficient to cover the full amount recoverable, the contractor shall pay to HAL on demand the remaining balance due.

38 Right of Sale and Utilization-Export License/Reexport Permission:

38.1 As the requirement is for Military/Civil application a specific confirmation from Bidders/Sellers on availability of export license from their respective Government should be provided and a copy of such relevant permission / license issued may be enclosed.

38.2 Bidders /Suppliers shall be required to obtain and maintain all Export/Import licences and permits etc., as the case may be, required for performing supplies against this tender. Obtaining export licence and timely availability shall be entire/sole responsibility of the Bidders/Suppliers, which forms a part of obligations of the contract. However any unforeseen delay should be promptly informed to HAL with proper justification. If End user certificate is required from HAL, the format of the same may be enclosed with this offer.

38.3 Bidders/Suppliers may indicate status of export permit based on the present rules/ regulations of their respective country and normal time frame for obtaining such export permission if an order is placed in near future and the said time frame should be covered within the delivery schedule indicated.

38.4 Bidders/Suppliers should also confirm that necessary clearances are available from their Governmental authorities regarding the sharing of technical data required for integration purposes with other vendors of Aircraft /Helicopter on a need to know basis.

38.5 Clearance in unequivocal terms also needs to be accorded regarding export of the equipment fitted as a part of the military and civil variant Aircraft /Helicopters, spare LRUs, modules & components and service support when such activities are undertaken by HAL India to other countries. Reservations if any may be specifically indicated as a part of the technical Bid.

38.6 Thus Bidders/Suppliers to confirm that there are no restrictions for exporting HAL Aircraft/helicopters to any country, fitted with the LRU/Systems/items offered/supplied by them.

38.7 Buyer will have exclusive worldwide sale and support right for all supplies under contract if specifically developed and funded by HAL. Any enquiry received on such equipment shall be directed to Buyer and Bidder/Seller will not directly sell / support / service without prior concurrence of Buyer. For all development orders all the Intellectual Proprietary Rights (IPR) will rest with Buyer.

38.8 The prices to be quoted by Bidders/Sellers for exports should be competitive in international market scenario.

38.9 In case of grant of Rights for Transfer of Technology (ToT) to Buyer for manufacture and/ or Repair and Overhaul (RoH), then Buyer will have exclusive rights for worldwide sale of the Aircraft / Helicopter incorporating the items/LRU Systems manufactured/ Repaired & Overhauled under ToT.

39 Confidentiality:- For the purpose of this Tender / Contract / Agreement, the Bidder / Contractor / Supplier shall not store, copy or disclose HAL’s data and information whether in written, machine readable or other tangible form or disclosed orally, that is of value to HAL. Also, Bidder / Contractor / Supplier agrees to use HAL’s data only for the purpose under this Contract, restrict disclosure to any person or entity or third party and shall safeguard the provided data including from cyber security risks etc. Bidder / Contractor / Supplier should promptly return within 90 days HAL’s data in original media and should not keep HAL’s data, upon expiry of Tender / Contract / Agreement or early termination of Contract / Agreement and certify that HAL’s data has been deleted permanently. Non-adherence to this confidentiality clause by the Bidder / Contractor / Supplier shall be treated, as a material breach of this Tender / Contract / Agreement. The provisions of this clause shall survive and remain in force notwithstanding the termination or expiry of this Contract / Agreement.

40.1 Seller agrees that HAL shall be the sole owner of all intellectual property (IP) generated in the performance of this Contract by or on behalf of Seller with the aid of either funding and/ or technical inputs from HAL (hereinafter referred to as ‘Foreground IP’). If applicable and to the extent that seller sub-contracts performance of any part of the contract, the seller shall ensure that any Foreground IP arising from such work of its sub-contractor/s shall be assigned to HAL absolutely. Seller hereby assigns and agrees to assign all rights and interest in the Foreground IP to HAL. Seller shall share with HAL, all documentation necessary for HAL to exercise its rights to Foreground IP. If required by HAL, Seller shall assist HAL in registering the Foreground IP in favour of HAL.

40.2 Seller grants to HAL an irrevocable, non-exclusive, world-wide, royalty-free license to sell, offer for sale, use, execute, release, disclose, and distribute the developed supplies/ services/ products, which may contain Background IP. Background IP shall mean and include all pre-existing inventions and IP necessary for HAL to exercise its rights to Foreground IP.

40.3 Seller shall indemnify and protect at its own cost, HAL in respect of cost/ claims/ liabilities (including attorney’s fees and associated costs of legal proceedings) arising from any violation of Intellectual Property Rights of any third party with respect to supplies/ services provided by seller. If HAL or HAL’s customer/s are unable to put to use the supplies/services or a portion thereof as a result of violation of the Intellectual Property of any third party, Seller shall within reasonable time at seller’s own cost either, i. Procure for HAL and HAL’s customer/s the right to continue using the supply /service or, ii. Replace or modify the supplies/ services so that it becomes non-infringing or, iii. Compensate HAL the amount equivalent to the cost of supplies procured /to be procured, development cost already paid to seller and damages suffered by HAL arising due to inability to put to use the supplies/ services or a portion thereof.

40.4 In case the supplier receives a requirement/ request for supply or repair of deliverables of this contract directly from any third party including HAL’s customers, such request shall be forwarded to HAL. Intellectual property for the purpose of this clause includes inventions, discoveries and improvements; know-how, works of authorship, technical data, drawings, specification, process information, reports and documented information; and computer software (including without limitation, source code, object code, source code listings and object code listings that would enable the software to be reproduced or recreated), topology of integrated circuits, databases or any other such results of intellectual activity.

40.5 Conflict of Interest: Any bidder having a conflict of interest, which substantially affects fair competition, shall not be eligible to bid in this tender. Bids found to have a conflict of interest shall be rejected as nonresponsive. A bidder in this Tender Process shall be considered to have a conflict of interest if the bidder: a) directly or indirectly controls, is controlled by or is under common control with another Bidder; or b) receives or have received any direct or indirect subsidy/ financial stake from another bidder; or c) has the same legal representative as another bidder for purposes of this bid. A Principal can authorize only one representative, and the representative also should not represent or quote on behalf of more than one Principal. However, this shall not debar more than one Authorised distributor from quoting equipment manufactured by an Original Equipment Manufacturer (OEM), in procurements under Proprietary Article Certificate; d) has a relationship with another bidder, directly or through common third parties, that puts it in a position to have access to information about or influence the bid of another Bidder or influence the decisions of the Procuring Entity regarding this Tender process; or participates in more than one bid in this tender process;

40.6 Participation in any capacity by a Bidder (including the participation of a Bidder as sub-contractor in another bid or vice-versa) in more than one bid shall result in the disqualification of all bids in which he is a party. However, this does not limit the participation of a non-bidder firm as a sub-contractor in more than one bid; or f) would be providing goods, works, or non-consulting services resulting from or directly related to consulting services that it provided (or were provided by any affiliate that directly or indirectly controls,is controlled by, or is under common control with that firm), for the procurement planning (inter-alia preparation of feasibility/ cost estimates/ Detailed Project Report (DPR), design/ technical specifications, Terms of Reference (ToR)/ Activity Schedule/ schedule of requirements or the Tender Document etc.) of this Tender process; or g) has a close business or family relationship with a staff of the Procuring Organization who: i) are directly or indirectly involved in the preparation of the Tender document or specifications of the Tender Process, and/or the evaluation of bids; or ii) would be involved in the implementation or supervision of resulting Contract.

41 PENALTY FOR USE OF UNDUE INFLUENCE :- Vendor undertakes that he has not given, offered or promised to give, directly or indirectly any gift, consideration, reward, commission, fees, brokerage or inducement to any person in service of HAL or otherwise in procuring the Contract or forbearing to do or for having done or forborne to do any act in relation to the obtaining or execution of the Contract or any other Contract with the Government for showing or forbearing to show favor or disfavor to any person in relation to the Contract with the Government. Any breach of the aforesaid undertaking by Vendor or any of its employees or anyone acting on its behalf (whether with or without the knowledge of Vendor) or the commission of any offence by Vendor or anyone employed by him or acting on its behalf, as defined in Chapter IX of the Indian Penal Code, 1860 or the prevention of Corruption Act, 1947 or any other Act enacted for the prevention of Corruption shall entitle HAL to cancel the Contract and all or any other contracts with the vendor and recover from the vendor the amount of any loss arising from such cancellation. A decision of HAL or its nominee to the effect that a breach of the undertaking has been committed shall be final and binding on Vendor. Giving or offering of any gift, bribe or inducement or any attempt to any such act on behalf of Vendor towards any officer/employee of HAL or to any other person in a position to influence the decision of HAL, directly or indirectly or any attempt to influence any officer/employee of HAL for showing any favor in relation to this or any other contract, shall render the Vendor to such liability/penalty as HAL may deem proper, including but not limited to termination of the Contract, imposition of penal damages, forfeiture of the Bank Guarantee and refund of the amounts paid by HAL

42 Bribes and Gifts: Any bribe, commission, gift or advantage given, promised or offered by or on behalf of the Vendor or his parties, agent or servant or any one on his or their behalf to any officer, servant, representative or agent of HAL or any person on his or their behalf in relation to the obtaining or to the execution of this or any other contract with HAL shall in addition to any criminal liability which the Vendor may incur, subject to the Vendor to the cancellation of this and all other contracts with HAL and also to payment of any loss or damage resulting from any such cancellation thereof. Any question or dispute as to the commission of any offence under the present clause shall be settled by HAL in such manner and on such evidence or information as they may think fit and sufficient and their decision shall be final and conclusive.

43 IMMUNITY TO GOVERNMENT OF INDIA:- It is understood and agreed that the Government of India is not a party to this agreement and has no liabilities, obligations or rights hereunder. It is expressly understood and agreed that HAL is an independent legal entity with power and authority to enter into contracts solely in its own behalf under the applicable Laws of India and General Principles of Contract Law. The vendor shall agree, acknowledge and understand that HAL is not an agent, representative or delegate of the Government of India. It is further understood and agreed that the Government of India is not and shall not be liable for any acts, omissions, commissions, breaches or other wrongs arising out of the contract. Accordingly, vendor expressly waives, releases and foregoes any and all actions or claims against the Government of India arising out of this contract, not to sue the Government of India as to any manner, claim, cause of action or thing whatsoever arising out of or under this agreement.

44 Agent / Agency Commission:- The seller confirms and declares to the buyer that the seller is the original manufacturer or authorized distributor / stockiest of original manufacturer or Govt. Sponsored / Designated Export Agencies (applicable in case of countries where domestic laws do not permit direct export by OEMS) of the stores referred to in this offer / contract / Purchase order and has not engaged any individual or firm, whether Indian or Foreign whatsoever, to intercede, facilitate or in any way to recommend to Buyer or any of its functionaries, whether officially or unofficially, to the award of the contract / purchase order to the Seller; nor has any amount been paid, promised or intended to be paid to any such individual or firm in respect of any such intercession, facilitation or recommendation. The Seller agrees that if it is established at any time to the satisfaction of the Buyer that the present declaration is in any way incorrect or if at a later stage it is discovered by the Buyer that the Seller has engaged any such individual / firm, and paid or intended to pay any amount, gift, reward, fees, commission or consideration to such person, party, firm or institution, whether before or after the signing of this contract / purchase order, the Seller will be liable to refund that amount to the Buyer. The Seller will also be debarred from participating in any RFQ / Tender for new projects / program with Buyer for a minimum period of five years. The Buyer will also have a right to consider cancellation of the Contract / Purchase order either wholly or in part, without any entitlement or compensation to the Seller who shall in such event be liable to refund all payments made by the Buyer in terms of the Contract / Purchase order along with interest at the rate of 2% per annum above LIBOR (London Inter Bank Offer Rate) (for foreign vendors) and Base Rate of SBI (State Bank of India) plus 2% (for Indian vendors). The Buyer will also have the right to recover any such amount from any contracts /Purchase order concluded earlier with Buyer.

45 Fall Clause: i) The prices charged for the stores supplied under the contract by the Vendor shall in no event exceed the lowest price at which the Vendor sells the stores or offers to sell stores of essentially identical description or specification to any persons/organizations including the purchaser of any Department of the Government of India or any Department of the Indian State Governments or any Public undertaking of the Central or State Governments, as the case may be during the period till the performance of the supply order against the order/contract is completed. ii) If at any time during the said period, the Contractor reduces the sales prices, sells or offers to sell such stores to any person/organization as mentioned above at a price lower than the price chargeable under the present order/contract, the contractor shall notify HAL of such reduction/sale or offer of sale and the price payable under the present contract for the stores supplied after the date of coming into force of such reduction or sale or offer to sale shall stand correspondingly reduced.

46 Settlement of Disputes and Arbitration:-

46.1 All disputes or differences whatsoever arising between the parties out of or relating to the construction, meaning and operation or effect of this Contract or the breach thereof shall be settled by Arbitration in accordance with the Rules of Arbitration of the Indian Council of Arbitration or International Centre for Alternative Dispute Resolution (ICA/ICADR) and the award made in pursuance thereof shall be binding on the parties. The provisions of the Arbitration and conciliation Act 1996 or any statutory modifications thereof shall apply to such legislation.

46.2 Applicable only for MSEs: The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides parties to a dispute (where one of the parties is a Micro or Small Enterprise) to be referred to Micro and Small Enterprises Facilitation Council if the dispute is regarding any amount due under Section 17 of the MSMED Act, 2006. If a Micro or Small Enterprise, being a party to dispute, refers to the provisions in MSMED Act 2006, these provisions shall prevail over the Indian Arbitration and Conciliation Act, 1996 and its statutory modifications thereof.

46.3 Supply and Payment during Arbitration: Supply under the contract shall if reasonably possible continue by mutual agreement during the Arbitration proceedings and no payment due to or payable by HAL, will be withheld without reasonable cause and merely on account of the pendency of such proceedings.

47 SHORT CLOSURE OF CONTRACT:- HAL reserves the right to short close this contract with three month prior notice to the vendor at any time during the tenure of the contract. The financial settlement entailed by such action shall be finalized based on the principle of equitable price adjustment and shall be based on discussions and mutual agreement.

48 Jurisdiction:-The competent Court at Bangalore, India shall only have Jurisdiction to deal with and decide any legal matter whatsoever arising on account of formulation or execution of this Contract.

49 Applicable Law: The contract shall be governed by and interpreted in accordance with the laws of the Republic of India.

50 Non Assignment to third Party:Vendor shall not be entitled without HAL’s consent to assign or transfer to a third party all or part of the benefi ts or obligations under this contract.

51 Parallel Arrangement:

Any Order awarded to the successful bidder as a result of this tender, will be on non-exclusive basis. HAL reserves the right of entering into parallel contract(s)/ release parallel Order(s) with any other firms now or hereafter.

52 Non-conformities between Figures and Words: In case of non-conformities/errors are observed in responsive tenders between the quoted prices in figures and in words. This situation normally does not arise in case of e-Procurement. This should be taken care of in the manner indicated below: i) If, in the price structure quoted for the required goods, there is discrepancy between the unit price and total price (which is obtained by multiplying the unit price by the quantity), the unit price shall prevail and the total price corrected accordingly; ii) If there is an error in a total corresponding to the addition or subtraction of sub-totals, the sub-totals shall prevail and the total shall be corrected; and iii) If there is a discrepancy between words and figures, the amount in words shall prevail. Such a discrepancy in an offer should be conveyed to the bidder asking him to respond by a target date and if the bidder does not agree to HAL's observation, then the bid is liable to be rejected.

53 New Firm(Non Registered vendor): Indicate in your quotation, whether you are an Registered vendor of HAL and if so by which division of HAL. If you are not an registered vendor of HAL, submit the application for Registration by HAL by downloading application format from our website www.hal-india.co.in with necessary documents. Deemed Registration: Vendors registered in other Defense PSUs will be considered as Deemed Registered. This Deemed Registration will enable the vendors to participate in all future tenders of HAL for similar category of goods/services subject to fulfillment of other eligibility criteria indicated in the RFQ. However, prior to placing of order, in case the vendor is selected after following the due process/procedure, all the formalities relating to completion of regularization of the Registration Process as per the extant procedure of this will have to be completed.

54 SUPPORTING ADDITIONAL DOCUMENTS: The Bidder/s agrees to submit such document/s like submission of Integrity Pact / supporting additional documents etc., if required or as called for in RFQ, subsequent to opening of the Bid and before finalizing the contract or PO, depending upon the then circumstances and decision of HAL. Any failure to submit such document/s or Integrity Pact in HAL given format, shall amount to rejection of the bid, which decision shall be at the discretion of HAL.

55 Any query related to tender (like due date extension, technical clarification, etc.) needs to be sent to HAL directly. The name and contact details of HAL personnel to whom queries related to tender to be sent are as below:- DGM (IMM) Rotary Wing Research & Design Centre, Hindustan Aeronautics Limited, Marathahalli Post, Bangalore - 560017 Ph: 080 - 2232 7191 Fax: 080 - 2231 7253 E-mail: [email protected]

TENDER NO. RC/IMM/RSS/8422BOI/925/1 ENCLOSURE-IA

DETAILS OF LOCAL CONTENT (to be uploaded along with Technical Bid)

S.N ITEM DESCRIPTION % of local content Details of location(s) at which the local value addition is made Whether copy of ink signed 'Self Certification' is uploaded (Yes / No)

1 Radial Shaft Seal for LUH Including Development & Production Phase

General Notes: -

1 Class-I local supplier means a Supplier or Service Provider, whose goods, services & works offered for procurement, has local content equal to or more than 50%.

2 Class-II local supplier means a Supplier or Service Provider, whose goods, services & works offered for procurement, has local content equal to or more than 20% but less than 50%.

3 Local content: Local content means the amount of value added in India (i.e.indigenous items/services added in the offered products/services/works) be the total value of the item offered (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties/IGST) as a proportion of the total value (excluding net domestic indirect taxes), in percent.

4 Purchase Preference, as detailed at Enclosure-A, is applicable only to Class-I local supplier. In case of non-submission of ‘Certificate as stipulated’, the purchase preference shall not apply.

5 A copy of ink-signed certificate should be uploaded along with technical bid in e-portal and original certificate should reach us within 15 days of due date of tender otherwise the purchase preference will not be applicable for the said offer.

6 The offer/bid received without indicating the percentage of local content will not be considered & rejected.

B) Additional Information, if any, may be indicated in the below table

ENCLOSURE TO TENDER NO. RC/IMM/RSS/8422BOI/925/1

Quote Reference:

PRICE FORMAT (EC 2024 Level)

General Instructions: i) The price bid should be complete in all respects and inline with the format given below. ii) While pricing, relevant tender documents (for details like quantity, deliverables and other details) including Main Tender document, Terms & Conditions, Technical Specification. iii) The quantity wrt to documentation, GSE, Special Tools, test equipments etc as requested at various phases of project in price format should be as per technical requirement/ should be adequate to meet RFQ requirement with respect to development phase, production phase,Spares etc. iv) It is the responsibility of the Seller (OEM) to ensure that complete and comprehensive list of all test equipments/ tooling/ other items/ materials/ services as required for various phases of project with detail break down indicating itemized price list with quantity are included in price proposal. v) No changes are permitted in this format. vi) Prices shouls be quoted in Indian Rupees only. UOM - Unit of Measurement

vii) Price break up (itemwise) and additional price details, if any, with regard to spares, list of equipments, special tools etc covered under Development, Production phases etc & others should be given in separate sheet -Price breakup sheet of this file only.Price break up for each Qualification test by actual testing to be provided.

A. DEVELOPMENT PHASE:

S/N DESCRIPTION QTY Unit of Meaure HSN /SAC Code Unit Price (Excluding Taxes) Total Basic Prices Applicable Taxes (If any) As per GST Structure) (Please mention the applicable Tax Arte and Its value) Extended Value Including Taxes (Total Value)

Rate of GST in % GST Amount

1 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-1 1 Lot 0.00 0.00 0.00

2 RC/LUH/TS/TS/116/Seal-1 60 Nos. 0.00 0.00 0.00

3 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-2 1 Lot 0.00 0.00 0.00

4 RC/LUH/TS/TS/116/Seal-2 40 Nos. 0.00 0.00 0.00

5 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-3 3 Lot 0.00 0.00 0.00

6 RC/LUH/TS/TS/116/Seal-3 20 Nos. 0.00 0.00 0.00

7 Non-Recurring Cost for procurement of RC/LUH/TS/TS/116/Seal-4 1 Lot 0.00 0.00 0.00

8 RC/LUH/TS/TS/116/Seal-4 20 Nos. 0.00 0.00 0.00

Indian Bidders to provide the following Details:

Value of Import content (only for deliverables supported by BOE) involved in the total quoted base price in FE

% of Customs Duty on import content (included in the quoted base price) in %

EXCHANGE RATE ADOPTED (Indicate Currency and Exchange Rate)

i) Radiator Shaft seal should include all deliverables as per Technical Specification (Part-I).

ii) No changes are permitted in this format.

iii) Prices should be quoted in Indian Rupees only

iv) Please provide itemized prices for all the above price elements (w.r.t. supplies and documentation).

v) Indian Bidders, Please indicate the % of of import content involved in the quoted base price as well as the % of customs duty on this import content included in the quoted base price. If HAL to give Custom Duty Exemption Certificate for imported components/items, Custom Duty amount will be excluded from evaluation and ordering. Note: Please indicate the % of import content involved in the quoted base price as well as the % of customs duty on this import content included in the quoted base price. If HAL give Custom Duty Exemption Certificate for imported components/items, Custom Duty amount will be excluded from evaluation and ordering.

vi) Training and Technical Assistance should include all expenses.

vii) vendor to provide cost break up for each qualification test as per technical specification requirement.

B. PRODUCTION PHASE

S/N DESCRIPTION Expected Year of Delivery QTY UOM HSN /SAC Code Unit Price -Considering Year wise delivery (Excluding Taxes) Total Basic Prices Applicable Taxes (If any) As per GST Structure) (Please mention the applicable Tax Arte and Its value) Extended Value Including Taxes (Total Value)

Rate of GST in % GST Amount

Indian Bidders to provide the following Details:

Value of Import content (only for deliverables supported by BOE) involved in the total quoted base price in FE

% of Customs Duty on import content (included in the quoted base price) in %

EXCHANGE RATE ADOPTED (Indicate Currency and Exchange Rate)

Bidders should Indicate the prices considering expected year of delivery as indicated in above Table . Bidders are also may also indicate applicable annual escalation rate in percentage for the deliveries beyond 2030 on the base year price of 2030.

i)Radial Shaft seal should include all deliverables as per Technical Specification (Part-I).

ii) Please provide itemized prices in respect of product, sub-modules, LRUs, SRUs or detailed parts which are procured or can be manufactured / serviced/ replaced as separate items. This detail has to be provided mandatorily and the total cost of items in the production build/ break down should sum up to unit production price at this table B.

iv) Purchase orders will be placed for Production Phase based on yearwise quantity required as per production plan (spread over a period of 06 years as given in Main RFQ-Para 2.3.2 based on Customer orders. The total quantity indicated above does not refers to quantity per order per annum or minimum order quantity for ordering. The quantity per order per annum during Production phase is subject to variations based on customer orders and HAL's production plan.

v) Indian Bidders, Please indicate the % of of import content involved in the quoted base price as well as the % of customs duty on this import content included in the quoted base price. If HAL give Custom Duty Exemption Certificate for imported components/items, Custom Duty amount will be excluded from evaluation and ordering. Note: Please indicate the % of import content involved in the quoted base price as well as the % of customs duty on this import content included in the quoted base price. If HAL give Custom Duty Exemption Certificate for imported components/items, Custom Duty amount will be excluded from evaluation and ordering.

C. SUMMARY OF TOTAL COST IMPLICATION

S/N DESCRIPTION Total Value

1 TOTAL OF DEVELOPMENT PHASE (P) 0 0.00

2 TOTAL OF PRODUCTION PHASE (Q) 0 0.00

Total Cost implication (sum of above) 0.00

Note: The Commercial Evaluation will be evaluated on above Package wise as per main RFQ

Taxes & Duties if applicable to be indicated below table.

Bidders to indicate the applicable Taxes & duties for the prices quoted above

Sl No Type Applicability Rate

4 other's if any (Please Specify)

5 other's if any (Please Specify)

6 other's if any (Please Specify)

7 other's if any (Please Specify)

Note: In applicability coulmn, Bidders to specify on applicability of taxes/levies applicable on type of product/services.

D.Price Break up for Unit Cost for RADIAL SHAFT SEAL

S/N DESCRIPTION QTY UOM UNIT PRICE (Basic Price) EXTENDED VALUE (Total Value)

E.Price Break up of "NON RECURING COST" for RADIAL SHAFT SEAL

S/N DESCRIPTION QTY UOM UNIT PRICE EXTENDED VALUE (Total Value)

F. TECHNICAL ASSISTANCE & TRAINING BEYOND THE SCOPE OF CONTRACT

S/N DESCRIPTION RATE / MAN-DAY

1 Rate per Man day of technical assistance (inclusive of technical fees, accommodation and other charges with exclusion of only air fare) at 2024 price level for availing technical assistance beyond the scope of contract as specified, which option may be exercised by HAL based on requirements during various phases of the programme. (Air fare would be reimbursable on submission of invoice based on actual expenditure).

2 Rate per Man day for Training at HAL (inclusive of technical fees, accommodation and other charges with exclusion of only air fare) at 2024 price level for availing training beyond the scope of contract as specified, which option may be exercised by HAL based on requirements during various phases of the programme. (Air fare would be reimbursable on submission of invoice based on actual expenditure).

3 Rate per Man day for Training at Vendor’s works at 2024 price level for availing training beyond the scope of contract as specified, which option may be exercised by HAL based on requirements during various phases of the programme

The above prices are indicative only and not part of commercial evaluation and option will be excercised based on HAL's discretion

Adiitional Information, if any

PRICE BREAK-UP DETAILS SHEET (OTHER THAN SPARES)