INSOURCING OF CNC MACHINIST FOR CNC SHOP

HINDUSTAN AERONAUTICS LIMITED AIRCRAFT DIVISION, BANGALORE COMPLEX POST BAG NO. 1788, VIMANAPURA POST, BANGALORE-560 017 INDIA Phone: +91 80 22321585, Fax +91 80 22315188 Web Site: www.hal-india.com

ANNEXURE-I (TECHNICAL COMPLIANCE MATRIX)

Tender Ref No. A/E/ESP/OT-RT/LCAMK1A-233/1/25 Dtd. 30.07.2025 Tender Due Date: 20.08.2025

Scope of Supply INSOURCING OF CNC MACHINIST AT CNC SHOP,AIRCRAFT DIVISION, HAL,B'LORE (PACKAGEWISE L1 OFFER) (OPEN TENDER - TWO BID SYSTEM)

1. Tenderer / Bidder Details

1 Name of the Tenderer / Bidder M/s.

2 Nature of Organization (Govt. / Public Limited Co. / Pvt. Limited Co. / Partnership / Proprietary)

3 Address of Registered Office

4 Address in Bangalore

5 Contact Person & Designation with Mobile No.

6 Telephone No.

9 Please confirm whether the bidder is Unregistered / Registered / Composition Scheme in GSTN

10 GSTIN No. (Copy to be Submitted)

11 PAN No. (Copy to be uploaded)

12 Whether the Bidder is MSE as per MSME Act (If Yes, pl. attach the relevant document to prove the same in the Technical Bid)

Whether the MSE is owned by SC/ST? (If Yes, pl. attach the relevant document to prove the same in the Technical Bid)

Whether the MSE is owned by Woman Entrepreneur? (If Yes, pl. attach the relevant document to prove the same in the Technical Bid)

Bidders who wants to avail privileges given to MSME vendors, should have UAN. Copy of the Udyog Aadhar certification shall be submitted to consider such privileges to MSMEs.

13 Pl. indicate whether the bidder is blacklisted or delisted. (Bidders who are blacklisted or delisted from any PSU / Govt. Departments will not be eligible to participate for bidding)

14 Whether the Bidder is a Registered Vendor with any of the HAL Divisions.

If 'Yes', please confirm the name of HAL Divisions where you have registered and provide the details such as Vendor Registration No. & Category and UPLOAD related documents to support your claim.

15 Pl. confirm the address to which PO to be placed in the event of acceptance of your tender after bid evaluation.

16 Bidder shall indicate their GeM (Government e Marketplace) Seller ID.

17 Please upload your Bank details in NEFT/RTGS/ECS format duly authorized by concerned Branch Manager of the Bank.

BANK DETAILS (Copy of cancelled cheque leaf to be Submitted) Bank Account No.

Name of the Bank

Type of Account

TECHNICAL COMPLIANCE MATRIX (SCOPE OF WORK DESCRIPTION)

SL No. SCOPE DESCRIPTION MANDATORY/ DESIRABLE ACCEPTABLE / NOT ACCEPTABLE REMARKS

1 Machining of CNC components by using CNC machines available in aircraft division For Information

2 Machines are having Siemens and Fanuc / Fager Control. For Information

3 Vendor has to use CNC Programs supplied by HAL for machining Mandatory

4 Machines are capable of machining Aluminium Alloys and Magnesium Alloys. For Information

5 Vendors are required to depute Qualified CNC Operators for machining on 3 shift basis. Mandatory

6 Machines, Cutting tools, CNC Programs and CNC layout sheets, Maintenance of the machine, Coolant, consumables are provided by the Division. Mandatory

7 The list of the Components to be machined as per Annexure -A For Information

II SCOPE OF WORK AND SPECIAL TERMS AND CONDITION (The entire activities to be carried out are as follows)

1 Vendor has to collect all the necessary documents and templates from CNC programming Department. Mandatory

2 Cleaning of Machine bed for loading raw material and arrangement of clamping elements for carrying out the machining operations. Mandatory

3 Loading of raw material, Maintaining Billet thickness as per Nc Layout sheet. Fixing of Datum, Establishing of tool offsets, collection of cutting tools from tool crib and carrying out various setups as per the Nc Layout Sheet. Mandatory

4 Collection and return of cutting tools from tool crib as per the existing practice. Mandatory

5 General up keeping of the machine regularly. Mandatory

6 Vendor should arrange for removal of chips from working zone and disposition of chips in the designation bins in all shifts. Mandatory

7 Recording of daily status and recording of dimensions in the log book. Mandatory

8 Laisoning with CNC Programming department for program verification / clarification. Mandatory

9 Carrying out first off Proving operation as per the procedure of CNC Programmer or CNC shop in-charge. Mandatory

10 The vendor has to make arrangement to carryout stage deburring, wax filling,final Deburring and vibro operations. Vendor has to ensure no loss of machine hours for want of stage deburring and final deburring is taken up immediately after finish machining. Mandatory

11 Cleaning of the part after all operations. Mandatory

12 The vendor has to co-ordinate for movement of the Completed parts along with documents to NC Inspection dept. Mandatory

13 Any rework given by the Nc inspection during inspection has to be carried out immediately by the vendor for Clearance of the parts. Mandatory

14 Obtain route book stamping from NC(Q) after part completion / acceptance . Mandatory

15 The quantity and Part mentioned against line item in the Commercial Quote format and as per Annexure “A” may vary for machining however the total amount of work will not cross the total order value. Mandatory

16 HAL-Aircraft Division will have flexibility to load components based on priority. Mandatory

17 Raw Material size at the time of issuing may vary based on availability at HAL-Aircraft Division. Vendors need to execute the Purchase Order without any additional cost. Mandatory

18 Quotation to be submitted as total cost per part as indicated in the Commercial quote format and as per Annexure ‘A’ list considering difficulty level mentioned. Vendor to quote same unit cost for particular group considering difficulty levels . HAL reserves the right to load any component within the group. Ex : Type-1 Group consists of 17 parts. Any components within the particular group can be loaded up to 17 qty. However the total quantity of particualr group will not exceeded qty 17. Mandatory

19 For Sl.No 79, 80 & 81 quote to be submitted as per man hour rate separately. Total cost of the part will be Man Hour Rate x SMH fixed by the MSD. Mandatory

20 All operational SMH is as per the established MSD Hours available in the Job Ticket for Sl no-79,80 & 81 of Annexure-A incase parts differ from the list of Annexure-A or as per Divisional requirement. Mandatory

21 Up keeping of machine and general surrounding of machines. Mandatory

22 Maintaining traceability of parts, in entire manufacturing cycle. Mandatory

23 Recording start and finish time job for each operation and filling the check list during operation. Mandatory

24 Vendor shall ensure completion of extra material trimming, filling and burr free surface before offering to QC for inspection. Mandatory

25 Effective supervision shall be ensured by the vendor with qualified supervisor who has to ensure proper supervision during operation of critical process. Supervisor (over and above machine operators/helpers) is mandatory for effective execution of order in operating shifts. Offer/Proposals shall not be considered for evaluation if supervisory activities are not considered. Mandatory

26 Man power deployed by the vendor should ensure tool pre-setting, assist operators for component loading, Inter machine movement, top up of coolant etc. Manpower deployed should have multi tasking abilities. Mandatory

27 All the Finished components are to be offered to Inspection within 24 hrs of completion. Mandatory

28 The qualification required for man power deployed for running CNC machines should be Degree,Diploma ( Mechanical/Production) with minimum 2 years of relevant experience or ITI Machinist with 4 years of relevant experience. Vendor to submit qualification and experience certificate of deputed manpower whille deployment. Mandatory

29 Training(basic training for approximately 2 weeks) will be provided to Man power deployed by the vendor by HAL and after training, evaluation and practical test will be conducted for personnel engaged by the vendor. No payment shall be made during the training period. Personnel who are qualified in the test only will be eligible to operate the machine. Mandatory

30 Material movement and supply of tools are under the Scope of HAL-Aircraft Division . Mandatory

31 Acceptance of each part will be by HAL QC. Mandatory

32 The Contract is valid for two years. Mandatory

33 Priority and quantity of parts to be machined shall be fixed by CNC shop in-charge. Mandatory

34 Machine Breakdown should be immediately informed to CNC shop in-Charge. Mandatory

35 Operator should Clean the chips and coolant at regular intervals. Corrosion of the parts should not happen due to coolant deposition. Mandatory

36 All the technical inputs like drawings, sketches, Nc layout sheets, processes sheets will be provided by HAL-Aircraft Division. All the documents shall be kept in proper place without any damage and shall not be copied or taken out.. Mandatory

37 The vendor shall provided all logistics support to its manpower for the execution of the work at HAL-Aircraft Division. Mandatory

38 The entire activities to be carried out are as per the instruction of CNC shop supervisor. Mandatory

39 Sufficient man power shall be engaged by the vendor for these activities. The emperical estimate as below. Sl no Personnel Number 1 Supervisor 1 2 CNC Operators 9 3 Fitter 1 4 Helper 1 TOTAL : 12 Multi tasking ,multi skilling of operations for execution of work is permitted to run machines on three shift basis. Mandatory

40 Effective supervision shall be ensured by the vendor with qualified supervisor during operation of critical process. Mandatory

41 Separate Log book for each machine to be maintained by the vendor to record all the details of the operations/ activities carried out in each shift. Mandatory

42 It is the responsibility of the vendor to assign the sufficient man power under each categories to meet the functional and production requirements. Mandatory

43 The details of man power along with their qualifications and experience (Supervisor/Operator/fitter ) to be provided while submitting the quotation. Mandatory

44 Required tools, fixtures, machines in working condition will be supplied by HAL.Consumable like cotton waste, saw dust, cleaning agent etc along with compressed air and power will be provided by HAL-Aircraft Division. For Information

45 If the tool,cutters etc are damaged or lost by the vendor, the same should be replaced with new ones by the vendor at its own cost. Mandatory

46 In case of rejection or accidents due to vendor not following SOP’s laid by HAL-Aircraft division, Loss of actual cost will be deducted and in case of rejection caused other than vendor mistake, actual cost of machining( man hours) and value added to the Part will be decided by MSD and it will be paid by vendor(proportional cost w.r.t. vendor quoted cost based on the percentage work completion) or recovered from invoices. Mandatory

47 Manpower deployed shall to work in 3 shift basis ( 8 hrs shift, i.e 7:00 am to 3:00 pm/3:00 pm to 11: 00 pm/11:00 pm to 7:00 am) as per the requirement of the company. In exigency of work it may be required to work on sundays also. Mandatory

48 In case of the vendor having /had any previous experience of executing similar jobs (positioning of personnel for Technical/production activities ), the evidence of such experience may be provided with full details along with the quotation. Mandatory

49 a)The order will be two years from the date of release of purchase Order. In case of poor performance or any other reason , HAL reserves the right to close the order by giving one month notice without assigning any reasons.In case of premature withdrawl of contract by the vendor, a minimum of one month notice should be provided by the Vendor. b)In case of Satisfactory completion of the order, the repeat order will be opted on mutual agreed basis. Mandatory

50 The competent authority of the office of the HAL reserves the right to award any or part or full contract to any successful agency(ies) at its discretion and this will be binding on the vendor. Mandatory

51 HAL reserved the Right to Identify the L1 Vendor considering all 06 typegroup of Items Quantity on Packagewise L1 Offer basis. In case, any vendor quote partially or not quoted for all the 06 Type Group (i.e, Tender Sl No 01 to 06) items such quotes are liable for Dis-Qualification. Mandatory

52 All the safety accessories like safety shoes ,hand gloves, goggles and helmet, etc. required for wearing during operation to be arranged by vendor. All operators shall wear uniform during the work. Mandatory

53 HAL is not responsible for any injury/loss of life etc. caused to his personnel deputed for work. It is the sole responsibility of vendor to supervise the job and will be responsible for their safety. Vendor shall indemnify HAL for any loss of life causality or injury to the personnel or any loss or damage to the property of HAL. Mandatory

54 The vendor shall oversee the effective working of the personnel provided by him. Mandatory

55 The vendor shall comply with all the requirements of labour law of Union Govt. Mandatory

56 The decision of the Officer-in- charge is final with regard to the satisfactory performance of the contract and any matter arising out of that is binding on the vendor as decided by HAL. Mandatory

57 It shall be the sole responsibility of the vendor to settle the dispute if any, arising out of engagement between himself and the personnel engaged by him and the management of HAL shall not in any way be responsible ,in the event, the personnel approach the competent authority, under any Act of law in the court. The entire expenses in this regard shall be borne by the vendor. Mandatory

58 Personnel engaged by the vendor shall comply with all safety and regulation. The vendor will be responsible to compensate the personnel in the event of any accident. Mandatory

59 The vendor shall obtain labour licence as per contract labour (Regulation Act) Act-1970, and furnish valid registration certificate / License issued by Union Labour Commission after obtaining the contract. Mandatory

60 HAL shall not be under any obligation for providing employment to any the personnel of the vendor after expiry of the purchase order. HAL does not recognize any employee employer’s relationship with any of the workers of the vendor engaged in HAL. Mandatory

61 The personnel of the vendor shall not be the employees of HAL and they shall not claim from HAL, any salary or allowances, compensation, damages or anything arising out of their deployment / duty under this contract. The vendor shall make them known about this position in writing before deployment under this contract. Mandatory

62 The Purchase Order is terminable without any compensation to the vendor for the breach of contract for any of the terms and conditions herein contained or otherwise stipulated in the tender documents /agreement. Mandatory

63 Machine uptime will be ensured upto 75% to 80%, Vendor has to effectively use the machine to meet the production plan with co-ordination with HAL-Aircraft Division. Machine should not be in idle condition for more than 5% of the available time. Mandatory

64 Rejection allowance of 5% on HAL supplied parts shall be allowed over the contract period of 2 years . Against Type -06 Group activity parts for any excess rejection beyond allowance, Raw material with value added cost will be recovered from Vendor bills. The maximum permissible rejection allowance will be 5% on HAL supplied parts (or the final quantity deliverable as per any subsequent amendment, Short-Closure or Termination) or One (1) , whichever is higher. This quantity will be converted into an equivalent allowable value. If the cumulative rejection in value terms is within the allowable value, HAL will supply additional material free of cost to the extent to cover the rejection. HAL Aircraft Division has the right to recover the cost of raw material as indicated in the above commercial quote format from the subcontractor . All rejected materials will be returned to HAL, , Aircraft Division by the subcontractor at his own expense on F.O.R basis. Mandatory

65 Delivery Schedule : Vendor has to complete the assigned job within the stipulated time. A delay of 5 days attributable to the vendor beyond the defined time line for any activities shall be considered as a failure to meet the production requirement and same will be treated as underperformance. HAL reserves the right to terminate the contact based on underperformance report . Monthly /Quarterly performance report will be made available to vender in writing. The time/date of execution of the assigned activity mentioned in the Order/Contract shall be deemed to be the essence of the contract and the activity must be completed not later than the timeline specificed therein. If the vendor fail to execute the assigned activity within the prescribed period as per the Order or as mutually agreed later in writing with HAL, HAL is entitled at its option to seek compensation and redressal through any or some of the following as deemed appropriate a)To recover Liquidated Damager(LD at the rate of 0.5% of the value of the activity executed late for each week of delay subject to a maximum of 5% of the value of the actvity delayed. b) To short-close / Terminate the order. Following delays will not be attributable to vendors, in case of sub-assembly jig hold up : (a)Additional technical input during the build by HAL (b)Delay in supply of items by HAL (c)Delay for Stage clearances /approvals by HAL QC / ORDAQA Mandatory

66 PAYMENT: 100 % of payment will be made to vendor after acceptance of Linewise completion of workdone report as indicated in the commercial quote format . Payment will be based on Line wise completion as per workdone report jointly signed by the User department, HAL NC (Q) representative and vendors repesentative on monthly basis. Payment is not based on the attendance of the personnel deployed. No payment will be made if part is rejected by NC(Q) and deviation is attributable to supplier. If HAL demands , The Vendor shall submit the monthwise remittance proof of statutory payment of ESI and PF and monthly attendance report of Vendors personnel deputed at respective Shop floor of Aircraft Division,HAL, B'lore. For Information

67 The vendor shall be responsible for any loss or damage caused to HAL property due to the negligence of the personnel engaged by him. The cost of such damage as decided by the management shall be paid by vendor or recovered from amounts payable to the vendor. Mandatory

68 HAL is not responsible for any injury/loss of life etc. caused to his personnel deputed for work. It is the sole responsibility of vendor to supervise the job and will be responsible for their safety. Vendor shall indemnify HAL for any loss of life causality or injury to the personnel or any loss or damage to the property of HAL. Mandatory

69 The decision of the Officer-in- charge is final with regard to the satisfactory performance of the contract and any matter arising out of that is binding on the vendor as decided by HAL. Mandatory

70 It shall be the sole responsibility of the vendor to settle the dispute if any, arising out of engagement between himself and the personnel engaged by him and the management of HAL shall not in any way be responsible ,in the event, the personnel approach the competent authority, under any Act of law in the court. The entire expenses in this regard shall be borne by the contractor. Mandatory

71 Sub-contractor personnel should not carry any of the electronic gadgets such as mobiles and other electronic items inside HAL premises. Mandatory

72 Service provider engineer will be removed if he/she found not suitable for the task at any stage of work assignment and suitable replacement needs to be provided immediately. Mandatory

73 The persons engaged by the vendor shall also be subjected to securities check by HAL security . The management reserves the right to ask vendor to dispense with the services of any person engaged by him, if he is reported to be doubtful integrity /non performance /any other specific reasons. Mandatory

74 The contractor shall not sublet whole of the work [back to back basis]. However, contractor is permitted to engage specialized agencies for part of the work with prior approval of Divisional Head on the recommendation of the Engineer-in-Charge. Mandatory

75 All the safety accessories like safety shoes ,hand gloves, goggles and helmet, uniform etc. required for wearing during operation . Mandatory

76 The sub-contractor shall take all necessary safety precautions and necessary Safety equipment. If any incident/accident happen in HAL premises necessary medical care, compensation as per LAW is the responsibility of the sub-contractor. Due care to be practiced in regard of health & safety of the workmen. HAL should not be held responsible for any claim/ liability for any untoward incidents during the contractual period. Mandatory

77 Sub-contractor should indemnify HAL against any loss, damages, liability etc. for any action or inaction of subcontractor’s employees or for any injury, death etc. to them during HAL’s premises Mandatory

78 Sub-contractor should provide indemnity bond to HAL against any liability on HAL in respect of these personnel or for any loss to HAL’s property for negligence, non-performance etc. of these personnel. The bond should be submitted within 7 working days after receipt of purchase order. Mandatory

79 Sub-contractor shall arrange necessary Police/Security verification to the workmen for executing work inside HAL Aircraft Division premises and submit to HAL. Mandatory

80 The sub-contractor shall comply with statutory requirements w.r.t. ESI / PF Act, Workmen Compensation act, Minimum Wages Act or any other Act as applicable: i) Payment of wages Act-1936 ii) Employee Provident Fund & Misc. Act-1952 iii) Factories Act- 1948 iv) Contract Labour (R & A) Act-1970 v) Minimum Wage Act- 1948 vi) The employee’s State Insurance Act-1948. If required, as per the stipulation under the contract labour (Regulation Act) Act, 1970, the vendor shall obtain and furnish valid registration certificate/ License issued by the Assistant Labour Commission-Central within 30 days of issue of Acceptance letter. Mandatory

81 All statutory requirements such as EPF, ESIC, etc., should be in the name of the principal contractor only. Any such consent shall not relieve the contractor from any of his liability or obligation under the contract and he shall be responsible for the acts, defaults and neglects of any sub-contractor, his representative, servants or workmen as fully as if they were the acts, defaults or neglects of the contractor. Vendor should pay minimum wages for respective category and vendor shall remitt all the statutory payments like ESI & PF for personnel engaged. Vendor should enclose a proof of remittance of ESI and PF challan for each personnel deputed for the respective contract PO while submission of Invoice for payment. If Vendor fails to produce or not paid the payments like ESI and PF of the deployed personnel, HAL reserves the right to short close the contract. In case of non-applicability of ESI on his employees, the vendor should make an alternative insurance coverage for medical injuries / death of his employees. HAL will not be liable for any payments to the employees engaged by the vendor in this regard. Mandatory

82 The contractor shall take all steps necessary to ensure that all persons employed on any work in connection with the contract have noticed that Indian Official Secrets Act, 1923 (XIX of 1923)applies to them & will continue to so apply even after the completion of such works under the contract. Mandatory

83 During period of the contract it shall be the responsibility of the Contractor to safeguard all materials (tools, tackles, plant, equipment etc. either issued by HAL or brought by the Contractor), against all losses, damages, on account of thefts shortages, fire or any reasons whatsoever and HAL shall not be responsible for loss, damages etc. as aforesaid and suitably substitute / compensate for HAL items. The Contractor shall solely be responsible for protecting and securing such property Mandatory

84 Any amendment in the Part number due to higher issue / design improvement /PQ compliance Annexure A to be modified and same to be absorbed by the vendor.No extra cost will be given. Mandatory

85 The quantity and Part mentioned against line item as per Annexure “A” may vary however the total amount of work will not cross the total order value. Mandatory

86 Commencement of Work: After PO placement within 15 days deputation of manpower should be done. Mandatory

87 Risk Clause :Vendor has to complete the assigned job within the stipulated time. A delay of 7 days attributable to the vendor beyond the defined time line for any activities, shall be considered as a failure to meet the production requirement and same will be treated as underperformance. HAL reserves the right to short close the purchase order. All items issued will be taken back by HAL and no compensation will be provided for work already carried out by the vendor for the in-completed sub-assembly work. Mandatory

88 It is essential for the Vendor to visit the site before quote for understanding the requirement and before pre-bid meeting. Vendor has to submit the Evidentary documentary proof to issue the visitor pass to attend Pre-Bid Meeting. Mandatory

89 Pre-Bid meeting: Interested vendor should attend Pre bid meeting scheduled on or before 14.08.2025 which is mandatory to discuss any Technical Clarification noticed by the Vendor for better understanding of Scope for submission of Competitive Quote and also to assess the vendor for qualification criteria. Vendor to submit original signed Omnibus NDA agreement (Annexure V) as applicable as per HAL prescribed format which is uploaded in the e-Tender. The Vendor has to give prior confirmation by E-mail for attending the Pre-Bid meeting with furnishing the Representative names and Government ID proof for attending the Pre-Bid Meeting putting request to DGM (ES) to email id ([email protected]) & contact No: 080-22322243/1519. Desirable

90 The competent authority of the office of the HAL reserves the right to award any or part or full contract to any successful agency(ies) at its discretion and this will be binding on the bidders. Mandatory

91 The vendor shall comply with all the requirements of labour law of Union Govt. Mandatory

92 Personnel engaged by the vendor shall comply with all safety and regulation. The vendor will be responsible to compensate the personnel in the event of any accident. Mandatory

93 HAL shall not be under any obligation for providing employment to any the personnel of the contractor after expiry of the purchase order. HAL does not recognize any employee employer’s relationship with any of the workers of the contractor engaged in HAL. Mandatory

94 The personnel of the vendor shall not be the employees of HAL and they shall not claim from HAL, any salary or allowances, compensation, damages or anything arising out of their deployment / duty under this contract. The Contractor shall make them known about this position in writing before deployment under this contract. Mandatory

95 The Purchase Order is terminable without any compensation to the contractor for the breach of contract for any of the terms and conditions herein contained or otherwise stipulated in the tender documents /agreement. Mandatory

III BID QUALIFYING CRITERIA (ESSENTIAL):

1 DETAILS OF CONSTITUTION OR LEGAL STATUS OF THE TENDERER: The Bidder should be a Company/Firm/Proprietorship having valid GSTN Registration and PAN in India. Mandatory

2 Bidder shall be an Indian Vendor or else their tender will be rejected. Mandatory

3 Bidder shall have Mandatorily CLASS III DSC from the authorised agency and got Registered with HAL E-portal to participate in the Open Tender. Mandatory

4 The supplier shall furnish a Performance Bank Guarantee as per HAL’s format (Annexure- VI) for 10% of the PO Value excluding GST from a scheduled bank in India on award of contract PO from HAL and the same shall be valid up to end of the warranty period from the date of acceptance / commissioning or otherwise equivalent amount shall be retained till completion of warranty period and other obligation of Purchase Order / contract. In case Supplier does not agree for Performance Bank Guarantee / retention of equivalent amount from their invoice/bill, the offer would be summarily rejected Mandatory

5 The Bidder shall furnish original duly signed legal instruments like Non-Disclosure Agreement (NDA) as per HAL prescribed format (Refer Annexure - VI) while attending the Pre-Bid meeting at Aircraft Division, HAL, B'lore. Prior intimation by E-mail addressing to [email protected] refering the Open Tender Number shall be requested for attending the Pre-Bid meeting for qualifiction to participate in the HAL E-Portal. Mandatory

6 Earnest Money Deposit (EMD): The bidder shall be required to deposit earnest money of Rs. 1,00,000/- (Rupees One Lakh only) for Indian Bidders. The EMD shall be submitted in Demand Draft/Banker’s Cheque/Wire Transfer only in favour of Hindustan Aeronautics Limited, payable at Bangalore and enclosed in a cover with tender reference and due date super scribed, and should reach the following address or the requisite amount to be Wire Transferred before Tender Closing date & Time. Deputy General Manager [External Source Department], Hindustan Aeronautics Ltd., Aircraft Division, Bangalore Complex, Bangalore-560017.India Ph : 080-22322243/1519 For Wire transfer, please make use of the following bank details: ACCOUNT NAME: HINDUSTAN AERONAUTICS LIMITED, AIRCRAFT DIVISION ACCOUNT NO: 39187601793 IFSC CODE : SBIN0001114 BANK NAME : STATE BANK OF INDIA, HAL BRANCH However EMD is exempted for PSUs, Other entities in the Govt Sector, MSEs Exempted by Govt Policy and foreign vendors. Vendor has to submit relevant documents MSME, Udyog Aadhaar etc., for claiming exemption. Mandatory & upload the relevant documentary evidence.

7 HAL reserves the right to verify the information by the vendor. In case the information is found to be false/ incorrect, the offer shall be summarily rejected during pre bid meeting/ Technical Bid / Commercial bid stages For Information

8 Submission of TWO BID (Techno Commercial) by any Unregistered Vendor of Aircraft Division, such Vendor will be assessed by the Technical Team during Technical Evaluation stage. Based on the outcome of the assessment report of the Technical Committee Vendor shall be Qualified/approved for opening of Commercial Bid. For Information

9 The bidder along with the bid shall furnish documentary evidence at the first instance itself to substantiate their claim meeting the requirement specified in the qualifying criteria. Qualification may be completed based on the details so furnished without seeking any subsequent additional information. For Information

10 Even though bidder meets all the criteria mentioned above, HAL reserves the right to assess the Bidder’s capability and capacity to perform the job, in the overall interest of HAL and HAL can reject the bid(s) at any time without assigning any reason and without incurring any liability to the affected bidders(s). For Information

11 The persons engaged by the vendor shall be subjected to security check by HAL Security. The HAL Management reserves the right to ask the vendor to dispense with the services of any person engaged by him, if he is reported to be of doubtful integrity/ non-performance/ any other reasons. Mandatory

12 In case of poor performance or any other reasons, HAL reserves the right to short close the order by giving one month notice without assigning any reasons. In case of satisfactory completion of the order, the order may be amended for future requirements with mutual agreement of both the parties. For Information

13 Necessary Police verification needs to be obtained by the Vendor for their personnel well before their deputation to HAL. The same needs to be made available to our security department for issuing necessary daily or monthly passes. At all times, the Vendor will be liable to maintain utmost discipline and will be held responsible for any kind of mis-conduct by any of their personnel. Mandatory

14 Personnel engaged by the vendor shall comply with all safety regulations. Vendor should ensure that required Personal Protective Equipment(PPE) will be used by their personnel deployed and the same will be provided by vendor. The vendor will be responsible to compensate the personnel in the event of any accident. Mandatory

15 The vendor shall not sub-let any portion of the contracted job without prior written approval of HAL. Mandatory

16 The personnel of the Contractor shall not be the employees of HAL and they shall not claim from HAL, any salary or allowances, compensation, damages or anything arising out of their deployment/ duty under this Contract. The Contractor shall make them known about this position in writing before deployment under this contract. For Information

The blank box highlighted in yellow colour shall be filled by the Vendor and uploaded the dully filled format with authorised seal and Signatory along with commercial quote Bid of the above E-Tender mandatorily. PLEASE INDICATE YOUR RESPONSE TO THE FOLLOWING TERMS AND UPLOAD AS A PART OF TECHNICAL BID. BIDDERS TO ENSURE NO PRICES ARE INDICATED IN THIS SHEET OR ANY WHERE IN THE TECHNICAL BID EVEN IN THE FORM OF PDF, IN CASE PRICES ARE ENTERED IN TECHNICAL BID, THE OFFER WILL BE SUMMARILY REJECTED. PRICES SHOULD BE ENTERED ONLY IN PRICE BID OF E PROCUREMENT WEB PORTAL.

DEFINITIONS & INTERPRETATIONS

HAL / COMPANY : Means Aircraft Division - HAL, who is interested to appoint a Supplier for the tendered service.

BIDDER / TENDERER : The firm / Agency who submits the bid / tender against this Invitation for Tender (IFT)

SSFUL BIDDER or TENDERER / Supplier / Vendor: The Bidder/Tenderer, whose bid/tender is accepted by HAL for award of Contract.

BID SHOULD BE SUBMITTED THROUGH E-PROCUREMENT

HINDUSTAN AERONAUTICS LTD.,

AIRCRAFT DIVISION

COMMERCIAL QUOTE FORMAT

TELEPHONE: 080 - 22322243/22321519 E-MAIL ID : [email protected]

NATURE OF WORK: INSOURCING OF CNC MACHINIST FOR CNC SHOP- ( PACKAGEWISE L1 OFFER) (OPENTENDER - TWO BID SYSTEM)

TENDER REFERENCE NO: A/E/ESP/OT-RT/LCAMK1A-233/1/25 Dtd. 30.07.2025 Tender Due Date: 20.08.2025

VENDOR NAME : VENDOR ADDRESS :

VENDOR QUOTE REF: QUOTATION DATE:

VENDOR GSTIN: UDYAM REGISTRATION NO:

TYPE OF ENTERPRISE MEDIUM/ MICRO/SMALL WOMEN ENTER PRISES (YES/NO)

OWNER OF THE ENTERPRISE BELONGS TO SC /ST OR OTHERS GEM SELLER ID

OWNER OF THE ENTERPRENEUR BELONGS Women Enterpreneur BANK DETAILS OF THE VENDOR Bank Name & Branch

SC/ST Account No & Type

Others IFSC/ MICR No:

TReDS REGISTRATION NO: SAC NO FOR SERVICE RENDERED

CONTACT PERSON & PHONE NO: E-MAIL ID

Sl No. Part No Description Qty (In Nos) Vendor quote Total Cost

Unit Price (Per Nos)

1 INS-TYPE-1_1 INSOURCING TYPE 1 CNC TYPE 17 0

FOR TYPE 1 CNC PART LIST DETAILED BELOW FOR REFERENCE (ANNEXURE A)

Part No Part Description Raw Material cost Difficult Level

01F 8E 300M 001 0A0 HOUSING (DUMMY) 173561 0.75

01F 1C 230M 001 0AB BLK'D FRAME STA#30 472240 0.81

01F 8H 201M 001 0A0 PYLON HOUSING - LD POD 102603 0.81

01F 8E 601M 001 0A0 PYLON HOUSING (ASSRAM) 116672 0.81

01F 8E 101M 001 0AA PYLON HOUSING -OUT BOARD R73 120104 0.81

01F 8C 101M 001 0AB PYLON HOUSING -IN BOARD 187591 0.81

01F 8D 101M 001 0AA PYLON HOUSING -MID BOARD 169107 0.87

01F 2B 410M 001 1AD FRONT SPAR WIN 125922 0.92

01F 2B 410M 001 2AD FRONT SPAR WIN 125922 0.92

01F 1C 401M 001 2AA BOTTOM LONGERON 277601 0.95

01F 1D 301M 001 1AA BOTTOM LONGERON 191538 0.97

01F 1D 301M 001 2AA BOTTOM LONGERON 191538 0.97

01F 1D 310M 001 2AA TOP LONGERON - 54561 0.97

01F 8F 101M 001 0AB HOUSING (TANDEM) 453932 1.0

2 INS-TYPE-2_1 INSOURCING OF CNC TYPE 2 0

FOR TYPE 2 CNC PART LIST DETAILED BELOW FOR REFERENCE (ANNEXURE A)

Part No Part Description Raw Material cost Difficult Level

01F 2B 401M 001 1AC ELEVON SUPPORT 315472 0.49

01F 2B 401M 001 2AC ELEVON SUPPORT 315472 0.49

3 INS-TYPE-3_1 INSOURCING OF CNC TYPE 17 0

FOR TYPE 3 CNC PART LIST DETAILED BELOW FOR REFERENCE (ANNEXURE A)

Part No Part Description Raw Material cost Difficult Level

01F 2B 414M 001 2AC DRY BAY BRACKET 78157 0.33

01F 1D 231M 001 0AB BLK'D FRAME(STA#31 AT X=9835) 133329 0.31

01F 1D 233M 001 0AB FRAME # 33 (BLK'D. ASSY. AT X=1056 121593 0.31

01F 1C 224M 001 0AA FRAME#24-RH-SIDE(X=7400) 86995 0.32

01F 1D 235M 001 0AB FRAME TOP(STA #35) 58256 0.33

01F 2B 414M 001 1AC DRY BAY BRACKET 78157 0.33

01F 1C 225M 001 0AB FRAME#25(X=7785) (BLK'D STA#25 ASSY 132765 0.35

01F 1C 222M 001 0AA FRAME-TOP BLK'D ASSY. STA.#22 (X=67 125783 0.36

01F 2B 411M 001 2AC DRY BAY BRACKET 118025 0.36

01F 2B 411M 001 1AC DRY BAY BRACKET 118025 0.36

01F 2B 403M 001 1AC ROOT RIB - WING 521595 0.39

4 INS-TYPE-4_1 INSOURCING OF CNC TYPE 14 0

FOR TYPE 4 CNC PART LIST DETAILED BELOW FOR REFERENCE (ANNEXURE A)

Part No Part Description Raw Material cost Difficult Level

01F 1C 131M 006 2A0 LONGERON (AIR C 7352 0.17

01F 1C 131M 006 1A0 LONGERON (AIR C 7352 0.17

01F 2B 406M 001 1AB AUXILIARY ROOT 136773 0.17

01F 1C 340M 001 1AA TOP LONGERON-FW 63302 0.17

01F 1C 112M 006 1A0 TEE-LONGERON-LH 29853 0.19

01F 2B 404M 001 1AC ROOT RIB (WING) 951821 0.19

01F 1D 310M 001 1AA TOP LONGERON - 54561 0.20

01F 1D 236M 001 0AA TOP FRAME (BLK'D. ASSY. STA #36) 61501 0.20

01F 1C 112M 006 2A0 TEE-LONGERON-LH 29853 0.20

01F 2B 407M 001 1AA REAR SPAR - INB 39699 0.24

01F 2B 408M 001 1AB REAR SPAR MIDBO 27670 0.25

01F 2B 409M 001 1AB REAR SPAR OUT B 23444 0.25

01F 1C 401M 001 1AA BOTTOM LONGERON 277601 0.25

5 INS-TYPE-5_1 INSOURCING OF CNC TYPE 28 0

FOR TYPE 5 CNC PART LIST DETAILED BELOW FOR REFERENCE (ANNEXURE A)

Part No Part Description Raw Material cost Difficult Level

01F 1D 101M 006 1AA LONGERON TOP- L 5622 0.02

01F 1D 101M 006 2AA LONGERON TOP- L 5622 0.02

01F 2B 407M 001 2AA REAR SPAR - INB 39699 0.02

01F 2B 408M 001 2AB REAR SPAR MIDBO 27670 0.02

01F 2B 409M 001 2AB REAR SPAR OUT B 23444 0.02

01F 1D 101M 004 1AA LONGERON-TOP-(L 6182 0.04

01F 1D 101M 004 2AA LONGERON-TOP-(L 6182 0.04

01F 2B 410M 003 1A0 FRONT SPAR SPLI 7691 0.04

01F 2B 410M 003 2A0 FRONT SPAR SPLI 7691 0.04

01F 2B 400M 031 1AA BRACKET-ELEVON 15458 0.04

01F 2B 400M 031 2AA BRACKET-ELEVON 15458 0.04

01F 1C 229M 001 1AA FRAME#25(X=7785) (BLK'D STA#25 ASSY 4107 0.06

01F 1C 227M 001 1AA FRAME -LH FRAME #27(X=8385) 23953 0.07

01F 2B 405M 001 1AB AUXILIARY ROOT 5682 0.07

01F 2B 410M 002 1AA FRONT SPAR STA 7691 0.07

01F 2B 410M 002 2AA FRONT SPAR STA 7691 0.07

01F 2B 403M 001 2AC ROOT RIB - WING 521595 0.09

01F 2B 404M 001 2AC ROOT RIB (WING) 951821 0.09

01F 1C 342M 001 1AA TOP LONGERON-AF 34617 0.09

01F 1C 340M 001 2AA TOP LONGERON-FW 63302 0.09

01F 1C 342M 001 2AA TOP LONGERON-AF 34617 0.09

01F 2B 405M 001 2AB AUXILIARY ROOT 5682 0.13

01F 2B 406M 001 2AB AUXILIARY ROOT 136773 0.13

Sl No. Part No Description Raw Material Cost per Part (Approximately) Qty (In Hrs) Vendor quote Total Cost

Unit Price (In Man Hour Rate)

6 INS-TYPE-6_1 INSOURCING OF CNC TYPE 1650 0

FOR TYPE 6 CNC PART LIST DETAILED BELOW FOR REFERENCE (ANNEXURE A)

Description of Work Raw Material cost (In Hrs)

CFC PANEL DRILLING(Total 16 types) - 650

Drilling for Lower issue to Higher issue parts - 500

5 AXIS CNC MACHINING - 500

Total Taxable Value (A) - (Sum of Sub Total 1 to 6) 0

Add : Statutory Taxes & Duties (i.e., GST wherever as Applicable)

CGST in % on Total Taxable Value (A) as applicable effective from 01.07.2017 - ( B ) 0.00% 0

SGST in % on Total Taxable Value (A) as applicable effective from 01.07.2017 - ( C ) 0.00% 0

IGST in % on Total Taxable Value (A) as applicable effective from 01.07.2017 - ( D ) 0.00% 0

GRAND TOTAL - ( Sum of A+B+C+D) 0

Validity of Quotes

Delivery Lead Time & Liquidated Damages

Terms and Conditions Annexure-I, Scope of Work & Commercial bid notes (Acceptable / Not acceptable)

1. Your Quote is Subject to the following Terms & Conditions:

The price quoted is F.O.R, HAL, Aircraft Division, B'lore as per below terms and conditions: 1. Machining of CNC components by using CNC machines available in aircraft division,HAL, B'lore. 2. Vendor has to use CNC Programs supplied by HAL for machining. 3. Vendors are required to depute Qualified CNC Operators for machining on 3 shift basis.. 4. Machines, Cutting tools, CNC Programs and CNC layout sheets, Maintenance of the machine, Coolant, consumables are provided by the Division. 5. The list of the Components to be machined are indicated in the above commercial quote format and also provided in Annexure -A.

a) Pre-Bid meeting: Interested vendor should attend Pre bid meeting scheduled on or before 14.08.2025 which is mandatory to discuss any Technical Clarification noticed by the Vendor for better understanding of Scope for submission of Competitive Quote and also to assess the vendor for qualification criteria. Vendor to submit original signed Omnibus NDA agreement (Annexure V) as applicable as per HAL prescribed format which is uploaded in the e-Tender. The Vendor has to give prior confirmation by E-mail for attending the Pre-Bid meeting with furnishing the Representative names and Government ID proof for attending the Pre-Bid Meeting putting request to DGM (ES) to email id ([email protected]) & contact No: 080-22322243/1519.

b) The Statutory taxes as applicable (i.e,G S T) at the time of delivery to be indicated Explicitly in percentage as provision given in the above commercial quote format coloured with Yellow. In case if the Vendor has not indicated the Tax line structure in % or left blank or not given any qualification for applicability of taxes as provision given in the additional notes below, such quotes shall be considered as "Inclusive of all Taxes and Duties" and vendor will not be eligible to make any claim in this regard at a later stage.

c) The RFQ quantity indicated is tentative, which may Increase/Decrease from time to time based on our LCA production Programme The Vendor shall submit the competitive offer considering the 5 Years anticipated requirement in addition to the above RFQ Quantity. The quotes of the Vendor shall be firm and fixed valid for 5 years period for the future additional quanties after successful proving and supply of initial order as establish source. In case of any higher issue changes against Annexure A parts indicated above in the commercial quote format after award of PO, the vendor has to carry out the Machining work on the updated higher issue part at the quoted price.

d) Identical Prices: In case Two or more bidder quotes the same price HAL reserves the right to seek revised offer from the same bidders or resolve the tie through a real-time reverse auction process and placing the order on the revised L1 offer. In case if the same situation prevails again then HAL reserve the right to place order on any one of them. When counter terms and conditions have been offered by a bidder HAL shall not be deemed to be governed by such terms and condition unless specific written acceptance there of has been given by HAL.

e) The offer is valid unless otherwise specified in the quote should remain valid for our acceptance for a minimum of 120 Days from the closing date of Tender.

f) Post Tender Correction: If the bidder request for any post Tender correction after opening of the Tender, such Tender is liable for Rejection or Disqualification.

g) Payment Terms: 100 % of payment will be paid to vendor after acceptance of parts from NC(Quality Department),HAL, Aircraft Division,B'lore and submission of Linewise completion workdone report as indicated in the commercial quote format . Payment will be based on acceptance of Line wise completion as per workdone report jointly signed by the User department, HAL NC (Quality Department) representative and vendors repesentative on monthly basis. Payment is not based on the attendance of the personnel deployed No payment will be made if part is rejected by NC(Quality Department) and deviation is attributable to supplier. If HAL demands , The Vendor shall submit the monthwise remittance proof of statutory payment of ESI and PF and monthly attendance report of Vendors personnel deputed at respective Shop floor of Aircraft Division,HAL, B'lore.

h) Vendor has to submit the quote per part against each type-group as provisioned the above commercial quote format and as per Annexure ‘A’ considering difficulty level mentioned above. Vendor has to consider the same quoted unit cost for each Type-group considering difficulty levels . However HAL reserves the right to load any components as indicated in above commercial quote format within the group. Ex Type-1 Group consists of 17 parts. Any components within the Type1-group can be loaded up to 17 qty. However the total quantity of Type1-group will not exceeded qty 17. HAL reserved the Right to Identify the L1 Vendor considering all 06 typegroup of Machining activities on Packagewise L1 Offer basis. In case, any vendor quote partially or not quoted for all the 06 Type Group (i.e, Tender Sl No 01 to 06) items such quotes are liable for Dis-Qualification. Against Tender Sl No.Type-06 quote to be submitted as per man hour rate separately as provisioned in the above commercial quote format. Total cost of the part will be Man Hour Rate x SMH fixed by the Management Service Department (MSD),Aircraft Division, HAL,B'lore. All operational SMH is as per the established MSD Hours available in the Job Ticket for Sl no-79,80 & 81 of Annexure-A incase parts differ from the list of Annexure-A based on Divisional requirement. In case of Non avalilability of CMS Machines, Division reserves the right to handing over the suitable machines to produce the components as listed in Annexure A.

i) REJECTION ALLOWANCE: Rejection allowance of 5% or One (1) , whichever is higher on HAL supplied parts shall be allowed on the RFQ Qty over the contract period of 2 years . Against Type -06 Group activity parts for any excess rejection beyond allowance Raw material with value added cost will be recovered from Vendor bills. The maximum permissible rejection allowance will be 5% on HAL supplied parts (or the final quantity deliverable as per any subsequent amendment, Short-Closure or Termination) or One (1) , whichever is higher. This quantity will be converted into an equivalent allowable value. If the cumulative rejection in value terms is within the allowable value, HAL will supply additional material free of cost to the extent to cover the rejection. HAL Aircraft Division has the right to recover the cost of raw material as indicated in the above commercial quote format from the subcontractor for excess rejection. The Raw material cost indicated in the RFQ is tentative. The exact loaded material cost on rejection will be recovered at the point of payment as per the actual loaded material type and respective current material purchase price.

j) Any minor changes in nomenclature including changes in drawing number, part number, Higher Issues, change in dimensions or change in material specification or etc against above RFQ Parts does not entail an increase in unit SMH by more than 5% vendor should absorb the changes voluntarily with out additional cost / claim for the applicable Order Quantity for the material supplied by HAL.

k) Delivery Schedule : Vendor has to complete the assigned job within the stipulated time. A delay of 5 days attributable to the vendor beyond the defined time line for any activities shall be considered as a failure to meet the production requirement and same will be treated as underperformance shall be considered as late and LD clause is applicable (Note: Any delay noticed and indicated in the work completion report by HAL shop Supervisor, such extent of delay LD will be calculated at the rates given below): a) To recover Liquidated Damages (LD) at the rate of 0.5% of the value of the item(s)delivered late for each week of delay subject to a maximum of 5 % of the value of the item(s) delayed. LD = V×[D/7]×0.5% or 5% of V, whichever is less, where V is the value of item(s) delayed and D is the number of days of delay. b) Claim reimbursement under the Risk Purchase clause c) To Short-Close/Terminate the Order Following delays will not be attributable to vendors: (a)Additional technical input during the build by HAL (b)Delay in supply of items by HAL (c)Delay for Stage clearances /approvals by HAL QC / ORDAQA.

l) Vendor can enter "0" Values for partial Regrets for Line Wise Items, since the cells accept only "numerical values" and In case if they want to regret the whole Tender, "Regret" can be qualified in the additional notes as provision given below.

m) Integrity Pact (IP) : The Vendor has to Compulsorily submit the duly signed Integrity Pact as per the Prescribe format of HAL where the order Value is > 5 Crore before placement of PO. The vendor will subcontract any portion of the SOW to a third party and the value of such subcontracting will be Rs. 2 Crores or more, the vendor should sign and submit a tripartite Integrity Pact (HAL, vendor and subcontractor) in a format to be specified by HAL

n) HAL reserves the right to place Repeat Order up to 100% of the value & quantity of the original order for any additional quantity requirement after placement of the original order (or) within 12 months from the date of completion of the original order.

o) Deviation Statement: Company will appreciate submission of offer based on the terms and conditions in the "RFQ" & “Scope of Service”, etc. to avoid wastage of time and money in seeking clarifications on technical / commercial aspect of the offer. Any deviation in reference to Commercial Terms & Conditions and its justifications must be submitted in the Deviation Statement format as per Annexure - IV of RFQ Document only.

p) Safety: HAL is not responsible for any injury/ loss of life, etc. caused to his personnel deputed for work; it is the sole responsibility of vendor to supervise the job and will be responsible for the safety. Vendor shall indemnify HAL for any loss of life, casualty or injury to his personnel or any loss or damage to the property of HAL.

q) Loss / Damage: The Vendor shall be responsible for any loss or damage caused to HAL property due to the negligence of the personnel engaged by him. The cost of such damage shall be paid by the vendor or recovered from the amounts payable to the vendor.

r) Risk Purchase: In case the supplier fails to execute the order in time either in terms of quality and quantity, HAL reserves the right to procure from elsewhere at the risk and the cost of the supplier and any extra expenditure incurred due to this purchase is payable by the supplier. In case the order is not executed to the entire satisfaction of HAL the Performance Bank Guarantee shall be forfeited. Besides intimation of risk purchase action.

s) Earnest Money Deposit (EMD): The bidder shall be required to deposit earnest money of Rs. 1,00,000/- (Rupees One Lakh only) for Indian Bidders. The EMD shall be submitted in Demand Draft/Banker’s Cheque/Wire Transfer only in favour of Hindustan Aeronautics Limited, payable at Bangalore and enclosed in a cover with tender reference and due date super scribed, and should reach the following address or the requisite amount to be Wire Transferred before Tender Closing date & Time. Deputy General Manager [External Source Department], Hindustan Aeronautics Ltd., Aircraft Division, Bangalore Complex, Bangalore-560017.India Ph : 080-22322243/1519 For Wire transfer, please make use of the following bank details: ACCOUNT NAME: HINDUSTAN AERONAUTICS LIMITED, AIRCRAFT DIVISION ACCOUNT NO: 39187601793 IFSC CODE : SBIN0001114 BANK NAME : STATE BANK OF INDIA, HAL BRANCH, However EMD is exempted for PSUs, Other entries in the Govt Sector, MSEs Exempted by Govt Policy and foreign vendors. Vendor has to submit relevant documents like MSME, Udyog Aadhaar etc., for claiming exemption.

t) Risk Purchase: In case the supplier fails to execute the order in time either in terms of quality and quantity, HAL reserves the right to procure from elsewhere at the risk and the cost of the supplier and any extra expenditure incurred due to this purchase is payable by the supplier. In case the order is not executed to the entire satisfaction of HAL the Performance Bank Guarantee shall be forfeited. Besides intimation of risk purchase action.

u) Performance Bank Guarantee: The supplier shall furnish a Performance Bank Guarantee as per HAL’s format (Annexure- VI) for 10% of the PO Value excluding GST from a scheduled bank in India and the same shall be valid up to end of the warranty period from the date of acceptance / commissioning or otherwise equivalent amount shall be retained till completion of warranty period and other obligation of Purchase Order / contract. In case Supplier does not agree for Performance Bank Guarantee / retention of equivalent amount from their invoice/bill, the offer would be summarily rejected

v) The Vendor has to Upload the duly filled and authorised signed copy of TECHNICAL COMPLIANCE MATRIX CUM SCOPE OF WORK (ANNEXURE-I) along with commercial Quote Bid of the above E-Tender Mandatorily for Evaluation of offer Technically by TEC. The blank box highlighted in yellow colour of the Scope of work Compliance Matrix - Annexure I shall be filled by the Vendor. Any Vendor quote technically Dis-Qualified by TEC such Commercial Bid quote will not be opened.

w) The other general terms and conditions will be indicated in Annexure-III. The Vendor should submit the Commercial Quote taking in to consideration of all the Annexures and Scope of Work as as referred in the RFQ

x) Supplied (Vendor) should have Security Clearance issued by concerned Police Authorities and should have clear Police Verification Report (PVR) at all times in their possession to be issued to the Purchaser (Vendee) on specific demand.

y) Vendor should submit Signed Omnibus Non-Disclosure Agreement (NDA) as per the format given which will be valid for 03 to 05 years period.

z) 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 Tender/Contract/Agreement, restrict disclosure to any other 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

aa) Bidders are advised, in their own interest, to ensure that their bids are submitted well before the "Due Date & Time of Bid-Submission" of the Tender as HAL's "e-Procurement System" at https://eproc.hal-india.co.in will not allow submission of bids once the closing date and time of the Tender (i.e., Due Date & Time of Bid-Submission) is reached. HAL shall not be responsible, if bidder is not able to submit the bid on account of failure in network / internet connect. Quotation sent by any other modes like e-mail/Fax/Courier/Post/ Hand drop will be not be considered for evaluation. For general correspondence kindly mail to [email protected]

ab) Register on TReDS Platform: “HAL is registered on TReDS Platform (Trade Receivables Discounting Systems), as being promoted by Government of India directive. It is suggested that all the MSMS vendors to take note of the same and consider for registering on any TReDS platform and avail the platform services which is being made available as per the Government Initiative.”

Important Note:

HAL has not appointed any agent in India or outside India for procurement of any items and deals directly with Vendors. In case any individual or firm approaches you posing themselves as an authorized agent of HAL. It is requested that you should not entertain such claim and in addition inform immediately to DGM (External Source Department) Aircraft Division, HAL, Bangalore" .

Additional Notes if any:

HINDUSTAN AERONAUTICS LIMITED AIRCRAFT DIVISION, BANGALORE COMPLEX POST BAG NO. 1788, VIMANAPURA POST, BANGALORE-560 017 INDIA Phone: +91 80 22321585, Fax +91 80 22315188 Web Site: www.hal-india.com

Tender Ref No. A/E/ESP/OT-RT/LCAMK1A-233/1/25 Dtd. 30.07.2025 Due Date: 20.08.2025

Scope of Supply INSOURCING OF CNC MACHINIST FOR CNC SHOP

Name of the Tenderer / Bidder

Quotation Reference Number

GENERAL TERMS AND CONDITIONS

SL No Particualrs Compliance Yes/ No Remarks

1 PRICE: The bidder is required to indicate prices in Indian Rupees against individual items. Price quoted should be on F.O.R. Destination basis, for delivery at Stores at Aircraft Division of HAL Bangalore 560017 inclusive of all charges including transit insurance as applicable. Noted & Confirmed

2 FIRM PRICES: Unless the RFP/RFQ states otherwise, prices quoted will be deemed as firm and fixed during firm and fixed during the validity of Order/Contract. Accordingly, subsequent claims for price increases or alteration of any of the terms of the Order / Contract shall not be raised unless HAL agrees to consider on merit. Noted & Confirmed

3 GST & OTHER TAXES : GST and / or other taxes as applicable should be distinctly shown alongwith the prices quoted also indicating HSN/SAC codes as applicable. GST, wherever liveable and intended to be claimed from HAL should be distinctly shown as “Extra” as provision given in the “Commercial Quote format” in case of E-procurement Tender and for Normal Tender shall be indicated as “Extra” in the Quotation. Where this is not done no claim for taxes will be admitted at a later stage on any ground whatsoever unless such claim arises due to a change in GST/ Tax Law/ Rules subsequent to submission of Bid. Noted & Confirmed

4 VALIDITY OF THE QUOTATION: Unless otherwise stated in the RFP/RFQ, Price quoted should remain valid for a minimum of 120 days from the closing date of Tender enquiry to account for processing of Bids and internal approval by HAL Noted & Confirmed

5 TENDER DUE DATE: The due date for submission of quote is as given in the Request for Quotation through E Procurement web portal. Please note that the due date for submission generally will not be extended. If extension is required, vendor has to provide request for extension 5 days before the due date, failing which extension will not be done. Noted & Confirmed

6 SUBMISSION OF TENDER: Bidders are requested to submit their proposals (Technical and Price bid) online at E Procurement web portal. Tenders submitted other than E Procurement web portal will not be considered and will be rejected (No Hard copies of Technical and Price bid should be submitted). HAL is not responsible for delays / problems faced if any with internet, etc. Hence you are requested to submit the bids on-line well before the tender due date and time. Noted & Confirmed

7 LATE TENDER: Bids received after the due date and time specified in the tender shall be rejected in competitive Tenders. This applies even if there might be genuine reasons for such non-submission/non receipt of of Bids within the date/time as per the RFP/RFQ. Noted & Confirmed

8 TENDER EVALUATION: i) Evaluation is based on packagewise basis considering all RFQ Line Items. ii) Bid with lowest price conforming to the specification will be considered for placement of order. iii) If two or more bidders quote the same price, HAL reserves the right to seek revised offer from the same bidders and placing order on revised L-1 offer. If same situation prevails then HAL reserve the right to place order on any of them. iv) 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. Noted & Confirmed

9 INSPECTION: Finished Items shall be inspected by HAL Aircraft Division’s Inspector (or by a Third Party Inspection agency chosen by HAL or by a Committee formed by HAL) at Vendor’s works or at HAL as decided by HAL. The outcome of the inspection (Accept/Reject/Rework) will be final and binding on the Vendor. The Vendor shall facilitate and support inspection if it is conducted at its premises based on advance intimation by HAL. Even though PDI or other stage inspections might be involved, the final inspection and acceptance will be at HAL Aircraft Division or applicable as per supplier scope of work Noted & Confirmed

10 ACKNOWLEDGEMENT : Once the Order is placed by HAL, within 7 calendar days, an acknowledgement of the same shall be sent to HAL to confirm Acceptance of the Order including Specification, Quantity, Price, Payment Terms, delivery schedule, etc. as indicated in the Order. If Acceptance as above is not given within 7 calendar days, it will be deemed to have been accepted. In order to avoid future disputes, vendors are encouraged to go through the Order and its Terms & Conditions carefully and intimate HAL if any of the contents are not in line with what was quoted and/or in line with what was negotiated and agreed with HAL. Noted & Confirmed

11 DAMAGE/LOSS TO MATERIAL/ASSETS: In the spirit of a Bailor-Bailee relationship in case material, tools, etc. are supplied by HAL, the Vendor shall take due care of these assets to prevent loss, damage, theft, pilferage, etc. due to man-made or natural causes. However, normal wear and tear of these assets while in usage will not be considered as damage for the above purpose. Vendor is strongly urged to procure Insurance Policy to cover the risk of loss/damage to materials and assets issued by HAL. Noted & Confirmed

12 i) REJECTION ALLOWANCE: Rejection allowance of 5% or One (1) , whichever is higher on HAL supplied parts shall be allowed on the RFQ Qty over the contract period of 2 years. Against Type -06 Group activity parts for any excess rejection beyond allowance Raw material with value added cost will be recovered from Vendor bills. The maximum permissible rejection allowance will be 5% on HAL supplied parts (or the final quantity deliverable as per any subsequent amendment, Short-Closure or Termination) or One (1) , whichever is higher. This quantity will be converted into an equivalent allowable value. If the cumulative rejection in value terms is within the allowable value, HAL will supply additional material free of cost to the extent to cover the rejection. HAL Aircraft Division has the right to recover the cost of raw material as indicated in the above commercial quote format from the subcontractor for excess rejection. The Raw material cost indicated in the RFQ is tentative. The exact loaded material cost on rejection will be recovered at the point of payment as per the actual loaded material type and respective current material purchase price. Noted & Confirmed

13 QUALITY AND WORKMANSHIP: The Vendor shall ensure that the items/tools/components supplied by them shall be of the highest quality and workmanship and as per the drawings & specification provided by HAL. Wherever orders are placed in accordance with particular specification/drawing requirement, it will be deemed to be an undertaking by the Vendor that they have fully acquainted themselves with various drawings / specifications/standards thereof. Noted & Confirmed

14 WARRANTY The Items supplied shall be free from any defects/poor workmanship and shall be guaranteed for Quality/ satisfactory performance for a period of 12 months from date of final acceptance by HAL. Any defect or deviations or shortfall against the Technical Specifications of the item Warranty period shall be rectified by the Vendor at its own cost. HAL at its option may insist on the vendor furnishing a Performance Bank Guarantee (PBG) for 10% of the value of the Order to cover HAL’s risks during the Warranty period. Such PBG in HAL’s format should be valid till 60 days after the last item is delivered. Post the Warranty period or post the expiry of the PBG as applicable, any rework or rectification to address defects noticed should be undertaken by the vendor on mutually agreed terms. Noted & Confirmed

15 k) Delivery Schedule : Vendor has to complete the assigned job within the stipulated time. A delay of 5 days attributable to the vendor beyond the defined time line for any activities shall be considered as a failure to meet the production requirement and same will be treated as underperformance shall be considered as late and LD clause is applicable (Note: Any delay noticed and indicated in the work completion report by HAL shop Supervisor, such extent of delay LD will be calculated at the rates given below): a) To recover Liquidated Damages (LD) at the rate of 0.5% of the value of the item(s)delivered late for each week of delay subject to a maximum of 5 % of the value of the item(s) delayed. LD = V×[D/7]×0.5% or 5% of V, whichever is less, where V is the value of item(s) delayed and D is the number of days of delay. b) Claim reimbursement under the Risk Purchase clause c) To Short-Close/Terminate the Order Following delays will not be attributable to vendors: (a)Additional technical input during the build by HAL (b)Delay in supply of items by HAL (c)Delay for Stage clearances /approvals by HAL QC / ORDAQA. Noted & Confirmed

16 TECHNICAL ASSISTANCE: Vendor shall take responsibility for successful integration, proving and qualification of the product to the satisfaction of the certification authorities. For this purpose vendor undertakes to send to HAL (without any cost to HAL) technical personal required by HAL / certification authorities. Noted & Confirmed

17 PACKING: Each items will be suitably packed in order to withstand transport hazards and also during storage period. Batch number and date of manufacture should be labelled on each part. Noted & Confirmed

18 HAL reserves the right to carryout on-site visits/audits and shall have unhindered access to shop floor, stores, bonded area and also at his sub vendors, if any. Project Review Meetings (PRM) will be conducted at regular intervals. Noted & Confirmed

19 EXTENSION OF TIME: If an extension of delivery schedule is desired, the vendor shall apply in writing to HAL citing valid reasons for extension, preferably at least 15 days prior to the scheduled date of delivery of the next item/batch as applicable. If HAL at its sole discretion agrees to the request, a mutually agreed revised schedule will be made and documented. If no request for extension of schedule is made as above, no later request for waiver of LD, etc. will be entertained by HAL. Noted & Confirmed

20 REPEAT ORDER: The additional Quantity up to 100% or less can be placed as repeat order within a period of 12 months from the last PO supply at the same initial PO unit cost. Noted & Confirmed

21 Vendor will be responsible for collection of kits from HAL with proper identification, packing and transportation in coordination with HAL. Vendor to check the kits with planning schedule and confirm the items before packing. Vendor is also required to supply finished items to HAL Aircraft Division , HAL, Bangalore Noted & Confirmed

22 PAYMENT TERMS: 100 % of payment will be made to vendor after acceptance of parts from HAL,QC. Payment is not based on the attendance of the personnel deployed. Payment will be based on Line wise completion as per workdone report jointly signed by the User department, HAL QA representative and vendors repesentative. No payment will be made if part is rejected by NC(Q) and deviation is attributable to supplier. If HAL demands , The Vendor shall submit the monthwise remittance proof of statutory payment of ESI and PF and monthly attendance report of Vendors personnel deputed at respective Shop floor of Aircraft Division,HAL, B'lore. Noted & Confirmed

23 APPROPRIATION : Whenever under this Order/contract any sum of money is recoverable from the Vendor, HAL shall be entitled to recover such sum by the following means sequentially until the entire claim is covered. a) Deduction from payables under the present Order b) Deduction from payables under any other Order placed by the HAL Division that placed the present Order c) Deduction from payable under any Order placed by any other Division of HAL If the entire claim cannot be covered by the above, the vendor shall make a direct payment to HAL through Bank transfer for the balance amount. If this not done, then HAL will invoke the Indemnity Bond for recovery through legal process. Notwithstanding the remedies available as above, HAL reserves the right to come to a negotiated settlement With the vendor in case the circumstances so warrant. Noted & Confirmed

24 Vendor shall establish and maintain a proper system at their premises for monitoring and managing the Inventory and Production including Part Rejection Order ( PRO ) and Tagging. Noted & Confirmed

25 RISK PURCHASE: In case the vendor fails to deliver items as per the specifications, scope, quality or schedules as per the Order, the vendor shall compensate HAL for the additional costs incurred by HAL in arranging for the supplies which are in default. Prior to invoking this clause, HAL will issue a Notice stating its intention to go ahead with alternative arrangements and the obligations of the vendor. In case a resolution to the issue is not proposed by the vendor within 15 days or if that proposal is unacceptable, HAL will initiate action to Short-Close or Terminate the Order and go ahead with making alternative arrangements including prospecting other vendors. In this case, the vendor shall be liable to pay HAL the difference between the price at which such alternate arrangement will be made and the price as per the Order/Contract with the vendor for the items undelivered or delivered with non-compliances. This is in addition to other claims and remedies available to HAL including the imposition of Liquidated Damages. Noted & Confirmed

26 SUB-CONTRACTING: The Vendor shall not sub-contract the scope of work under the Order in whole (or to an extent large enough) to any other party in such a manner as to make itself equivalent to an agency or intermediary. In case more than 25% of the scope of work (SOW) in terms of value is proposed to be sub- contracted to a single third party, prior written consent of HAL shall be taken. If the vendor will subcontract any portion of the SOW to a third party and the value of such subcontracting will be Rs. 2 (Two) crores or more, the vendor should be ready to sign a tripartite Integrity Pact (HAL, vendor and the sub-contractor) if so demanded by HAL and in a format specified by HAL. Noted & Confirmed

27 INDIAN MICRO & SMALL ENTERPRISES (MSES): As per the directives of Govt. of India, Ministry of Micro, Small and Medium Enterprises amendments to Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 vide order No. 21(22)-2018-MA dtd 9th Nov 2018. L1 vendor is Non-MSE & tendering quantity is dividable: If one or more MSE Vendors fall within the price band of L1+15% and agree for L1 price the supply of 25% of tendered quantity (rounded to lesser integer) will be shared among MSE’s L1 Vendor is Non-MSE & tendering quantity is undividable: If MSE vendor quoting price falls with in the price band of L1+15% and agrees for L1 price the full tendered quantity will be awarded to MSE vendor. L1 vendor is MSE full tendered quantity shall be awarded. The vendor must certify whether they belong to Micro and Small Enterprises (MSEs), if so they should enclose the relevant supporting documents specified by Ministry of MSME and also indicate whether the enterprise is owned by the Scheduled Caste or the Scheduled Tribe entrepreneurs. In absence of these information & supporting documents, the vendor will not be considered under MSEs. Noted & Confirmed

28 WAIVER OR TRANSFER OF THE CONTRACT : The supplier shall not waive the contact or transfer it to third parties, whether in part or in whole, nor waive any interest that is included in the contract without prior written permission of the company. Noted & Confirmed

29 MODIFICATION: Any Modification of or addition to the contract shall not be binding unless made in writing and agreed by both the parties. Any minor changes in nomenclature including changes in drawing number, part number, Higher Issues, change in dimensions or change in material specification or etc against above RFQ Parts does not entail an increase in unit SMH by more than 5% vendor should absorb the changes voluntarily with out additional cost / claim for the applicable Order Quantity for the material supplied by HAL. Noted & Confirmed

30 MATERIAL CHANGE IN INFORMATION: Vendor shall always inform any material changes in the information already declared/furnished by them at the time of registration or afterwards, within 30 days of such material change in information. Non-compliance in this regard may result in de-registration of the Vendor. In the case of serious breaches, the Order is liable to be terminated at HAL’s discretion. Noted & Confirmed

31 CONFIDENTIALITY : Vendor is given the drawings/ process sheets and other documentation for manufacture of the components required by HAL Aircraft Division. The documents issued to Vendor are strictly confidential. Vendor should keep them in safe custody. The information contained in the documents should not be divulged to any other person(s) or entities. Vendor is solely responsible to prevent any loss of these documents. No extra copies of the documents should be made other than for essential and legitimate purposes, in any case ensuring confidentiality. Any violation by Vendor of these instructions will make Vendor liable for penal action under section 3 and 5 of the Official Secrets Act, 1923. HAL may insist on signing of a Non-Disclosure Agreement in this regard. The drawings shall be the property of HAL and shall not be used for any purpose other than the purpose intended under the Order/Contract. Where technical inputs/assistance is provided to the Vendors by HAL to facilitate work, such inputs shall also be treated as confidential information and safeguarded accordingly. Vendor shall not directly deal with HAL’s customers for the items deliverable to HAL under this Order unless expressly instructed to do so by HAL. Noted & Confirmed

32 PARALLEL ORDER/CONTRACT: Nothing in this Order/ contract precludes HAL from entering now or hereinafter into any Order/contract with others for manufacturing and supply of same or similar goods. Noted & Confirmed

33 TERMINATION OF CONTRACT: In the event of HAL Aircraft Division not being satisfied with the performance of the Vendor for any reason including breach of contract, or for HAL’s own convenience, HAL Aircraft Division shall be entitled to terminate the Order/contract, after giving 30 days’ notice in writing to the Vendor by registered post. In case of a termination for convenience of HAL, the compensation payable to the vendor shall be worked out on a fair and equitable basis and then agreed mutually through negotiation. In case the termination is warranted for reasons entirely attributable to the vendor, no compensation shall be payable, but HAL shall be entitled to claim remedies as available under the present Order. Further, upon termination, the Vendor shall ensure the following at its own expense and within 30 days after the termination is formally completed. a) All the materials supplied by HAL, except what is allocable on a pro rata basis to the deliveries completed before the date of receipt of the Notice of Termination, to be returned to HAL. This shall include unused raw materials, semi-finished items and finished items ready to be delivered. b) All the other assets (Tools, Jigs, Fixtures, Inspection equipment, etc.) supplied by HAL or fabricated by the vendor using HAL funds to be returned to HAL c) All the documents (in soft and hard copies) supplied by HAL to be returned to HAL d) All spare copies of documents, soft copies in vendor IT system to be permanently erased/destroyed. e) For enabling HAL to make alternative arrangements for supply of the items, the vendor shall transfer drawings, documents, process sheets, methodology, etc. to HAL including IP rights (if involved) for use by HAL. In case the termination is for HAL’s convenience, the parties will negotiate the terms of such transfer. f) In case the vendor has sub-contracted a portion of its scope of work, all of the above stipulations to be understood to include the materials, documents, etc. issued to/available with the sub-contractors of the vendor also. Noted & Confirmed

34 ARBITRATION: All disputes related to this Order shall at first instance be resolved through friendly negotiations. If the dispute cannot be resolved thus, the matter shall be referred to Arbitration as follows. (a) FOR VENDORS OTHER THAN GOVERNMENT ENTITIES AND MSMES 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 (ICA) and the award made in pursuance thereof shall be binding between the parties. (b) FOR A VENDOR WHO IS A GOVERNMENT ENTITY In the event of any dispute or difference relating to the interpretation and application of the provisions of commercial contract(s) between Central Public Sector Enterprises (CPSEs)/ Port Trusts inter se and also between CPSEs and Government Departments/Organizations (excluding disputes concerning Railways, Income Tax, Customs & Excise Departments), such dispute or difference shall be taken up by either party for its resolution through AMRCD (Administrative Mechanism for Resolution of CPSE’s Disputes) as mentioned in DPE OM No.05/0003/2019-FTS-10937 dated 14/12/2022 as amended and the decision of AMRCD on the said dispute will be binding on both the parties. (c) APPLICABLE ONLY FOR MSME VENDOR 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 which is in force from time to time. Noted & Confirmed

35 WORK AND PAYMENT DURING ARBITRATION Work under the contract and related activities including payments can, if reasonably possible, continue by mutual agreement during the arbitration proceedings. Noted & Confirmed

36 JURISDICTION: The Court at Bangalore, Karnataka only shall have jurisdiction to deal with and to decide any legal matter whatsoever arising out of this contract. This contract shall be governed by and subject to and interpreted and construed in accordance with the Laws of Republic of India, which are in force from time to time. Nothing in this contract shall entitle the Parties to this contract to exercise the rights, privilege and powers conferred under this contract in any manner which will contravene the Laws of India. Noted & Confirmed

37 FALL CLAUSE: During the validity of the present Order, the vendor shall not sell or offer to sell the items deliverable under this Order to any other buyer at prices lower than those agreed in this Order. In case it comes to the notice of HAL that this condition is breached, HAL, if it so chooses, will notify the vendor accordingly and seek the benefit of such lower prices which shall be passed on to HAL without demur. Such benefit will arise from the date on which sales at the lower prices is made/ offered by the vendor to any other buyer. Noted & Confirmed

38 EXPORT LICENSE: Foreign Vendors making proposals should ensure availability of export license as per their Govt. Regulations for export to India. Vendor shall be required to obtain and maintain all Export/Import licenses and permits etc., as the case may be, required for performing supplies/ services against this tender. Obtaining export license shall be entire responsibility of the Vendor. The Vendor shall ensure that HAL has unrestricted rights to export its products incorporating the item supplied by the vendor to any county. Noted & Confirmed

39 AGENTS/AGENCY COMMISSION: The vendor confirms and declares that the vendor has not engaged any individual or firm, whether Indian or Foreign whatsoever, to intercede, facilitate or in any way to recommend to HAL or any of its functionaries, whether officially or unofficially, to the award of the contract/ order to the vendor; 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 Vendor agrees that if it is established at any time to the satisfaction of HAL that the present declaration is in any way incorrect or if at a later stage it is discovered by HAL that the vendor 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 the contract/ purchase order, the vendor will be liable to refund that amount to HAL. The vendor will also be debarred from participating in any RFQ/Tender for new projects/ program with HAL for a minimum period of five years. HAL will also have a right to consider cancellation of the contract/ order either wholly or in part, without any entitlement or compensation to the vendor who shall in such event be liable to refund to HAL, all payments made by HAL in terms of contract/ order along with interest at the rate of 2% per annum above SOFR (Secured Overnight Financing Rate) (for foreign vendors) and MCLR of State Bank of India plus 2% (for Indian vendors) as on the date of payment. HAL will also have the right to recover any such amount from any contracts/ order concluded earlier with HAL. Noted & Confirmed

40 IMMUNITY TO THE GOVERNMENT OF INDIA : It is expressly understood and agreed by and between Vendor & HAL that HAL is entering into this contact solely on its own behalf and not on behalf any other person or entity. In particular, it is expressly understood and agreed that Government of India is not a party to this contract and has no liabilities, obligations or right hereunder. It is expressly understood and agreed that HAL is an independent legal entity with power and authority to enter into contracts solely on its own behalf under the applicable laws of India and general principles contract law. Vendor expressly agrees, acknowledges and understands that HAL is not an agent, representative or delegate to the Government of India. It is further agreed and understood that 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 hereby expressly waives, releases and foregoes any and all actions, including counterclaims, impleader claims or counter claims against the Government of India arising out of this contract and covenants as to any manner, claim cause or action whatsoever arising out of or under this contract. Noted & Confirmed

41 INTELLECTUAL PROPERTY (IP) RIGHTS, ETC.: a) Vendor 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 the Vendor with the aid of either funding and/or technical inputs from HAL (hereinafter referred to as ‘Foreground IP’). To the extent that Vendor’s sub-contractors perform any part of the Contract, the Vendor shall ensure that any Foreground IP arising from such work shall be assigned to HAL. Vendor shall share with HAL all documentation necessary for HAL to exercise its rights to Foreground IP. If required by HAL, Vendor shall assist HAL in registering the Foreground IP in favour of HAL. b) Vendor grants to HAL an irrevocable, non-exclusive, world-wide, royalty-free license to sell, offer for sale, use, and distribute HAL Products incorporating the item(s) supplied by the vendor under this Order which item(s) may contain Background IP of the vendor. Background IP shall mean and include all pre-existing inventions and IP necessary for HAL to exercise its rights to Foreground IP. c) Vendor 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 the vendor. 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, the vendor shall within reasonable time at vendor’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 for the damages suffered by HAL arising due to inability to put to use the supplies/ services or a portion thereof. d) 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, specifications, 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. Noted & Confirmed

42 INVOLVEMENT OF ANY AGENTS AND MIDDLEMEN: No involvement of Agents or Middlemen in India or abroad in any capacity whatsoever is permitted at any stage in relation with this tender and the resultant contract. Subcontractor shall confirm that he has not appointed any agent in India to promote this contract and that no commission etc. is payable to any such agent in connection with this contract. Subcontractor shall also confirm that he has neither paid nor will pay any commission, fee or any such charges to any agent in connection with the award and execution of this contract. Should it be subsequently proved that such a commission, fees or charge has been paid, contrary to the foregoing, buyer shall be entitled to terminate this contract forthwith. The buyer shall also be entitled to recover from the seller an amount equal to the commission, fees or any such charge proved to have been paid. HAL has not appointed / authorized any person / agent to deal with the subcontractors in respect of the said contract. In case, if someone claims and interacts with the subcontractors it shall be duty of the subcontractors to bring such instances to the notice of HAL Management. It is expressly understood and agreed by and between Sub Contractor & purchaser that purchaser is entering into this contact solely on its own behalf and not on behalf any other person or entity. In particular, it is expressly understood and agreed that Government of India is not a party to this contract and has no liabilities, obligations or right hereunder. It is expressly understood and agreed that purchaser is an independent legal entity with power and authority to enter into contracts solely on its own behalf under the applicable laws of India and general principles contract law. Sub Contractor expressly agreed acknowledges and understand that purchaser is not an agent, representative or delegate to the Government of India. It is further agreed and understood that 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, sub-contractor hereby expressly waives releases and foregoes any and all actions, including counterclaims, impleader claims or counter claims against the Government of India arising out of this contract and covenants as to any manner, claim cause or action or this whatsoever arising out of or under this contract. Noted & Confirmed

43 EXIT CLAUSE: Exit criteria: The contract/order may be terminated under the following circumstances: i) In the event of unsatisfactory performance by the vendor during the contract period, or any of the information provided by the vendor is found to be untrue, or vendor is found to have attempted to influence any person involved with the contract through unethical means, the contract shall be terminated with 03 month’s advance notice without any financial implication to HAL. Notwithstanding the foregoing, in cases where it is found that a vendor is engaged in unethical practices, they shall be barred from participating in the future contracts for a period of 02 years. ii) If there is change in HAL requirement, contract shall be terminated with 01 months advance notice. The liability of HAL in this case will be agreed mutually. In the event of termination of contract by either party the vendor shall ensure the following: a) IPR’s are transferred to HAL to enable HAL to proceed on the work with other Vendor. Vendor also will render all assistance till the other vendor fully take over the balance work. b) Transfer title and deliver all or any part thereof of the supplies, materials, work-in-progress, finished Products, Tooling, drawings and data produced or acquired by vendor specifically for the Product being terminated. c) Supply of products and its components / spares at least for a period of 05 years from the date of such termination. d) The vendor is declared bankrupt or becomes insolvent. e) The delivery of material is delayed due to causes of Force Majeure by more than (03 months). f ) Based on the decision of the Arbitration Tribunal. Noted & Confirmed

44 FORCE MAJEURE: Neither party will be liable to the other for any act done or prevented from so doing by virtue of the occurrence of force majeure conditions such as war, general mobilization of troops, strikes, lockouts in factories, fire, earthquakes and floods, embargoes or stoppage of deliveries by Government. Noted & Confirmed

45 A designated coordinating officer should be nominated by Vendor who will be single point of contact for coordinating the project with HAL. Please indicate following: Contact person name Postal address, email ID for future correspondence / clarifications and also provide email and phone no of CEO/MD/GM/Proprietor Noted & Confirmed

The blank box highlighted in yellow colour shall be filled by the Vendor and uploaded the dully filled format with authorised seal and Signatory along with commercial quote Bid of the above E-Tender mandatorily.

DEFINITIONS & INTERPRETATIONS

HAL / COMPANY : Means Aircraft Division - HAL, who is interested to appoint a Supplier for the tendered service.

BIDDER / TENDERER : The firm / Agency who submits the bid / tender against this Invitation for Tender (IFT)

SUCCESSFUL BIDDER or TENDERER / Supplier / Vendor: The Bidder/Tenderer, whose bid/tender is accepted by HAL for award of Contract.