JOB WORK

ENGINE DIVISION HINDUSTAN AERONAUTICS LIMITED POST BAG NO. 9310 BENGALURU - 560093. INDIA.

Tender Ref. No:

NAME OF WORK: SUB CONTRACT

Name of the sub-contractor/Firm

Qtn. Reference No. & Date

SL Parameters RFQ Terms and Conditions Acceptable Yes / No If No, Reason for Non acceptance

1 PRICE a) 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 Engine Division of HAL (PIN Code:560093) inclusive of all charges including transit insurance as applicable.

b) Unless the RFP/RFQ states otherwise, prices quoted will be deemed as 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.

c) HAL will not provide any tools & gauges. Sub-Contractor to quote only unit price considering all machining , tooling, gauge & any development charges etc.

d) Special process Operations Like,copper plating, Silver plating and Nitriding, NDT, Heat Treatment, Anodizing, Hard anodizing, Tempering, Case hardening, welding will be carried out by HAL. Vendor quote shall be excluding these costs.

e) The price quoted by the sub-contractor should be after taking into consideration realizable value of scrap generated through job work.The scrap generated from the job work shall be disposed by paying GST and other statutory levis as applicable.

2 GST & OTHER TAXES GST and/or other taxes as applicable should be distinctly shown along with the prices quoted also indicating HSN/SAC codes as applicable. 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.

3 VALIDITY OF 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.

4 TENDER DUE DATE The due date for submission of quote is -------------------.

5 SUBMISSION OF BIDS The bidder is required to submit bids directly to HAL through the Mode of submission indicated in the RFP/RFQ with markings and enclosures stated therein. Bids which do not meet requirements stated in the RFP/RFQ are liable to be rejected at the absolute discretion of HAL

6 LATE TENDER a) 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 nonsubmission/non-receipt of Bids within the date/time as per the RFP/RFQ.

b) HAL Engine Division will not be responsible for inability of subcontractor to upload the tender documents in e-procurement/GeM.

7 OPENING OF TENDER Tender will be opened after due date/time as mentioned in Sl. No.5.

8 TENDER EVALUATION a) The Tender will be evaluated on line item basis.

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

c) If two or more bidders are determined as L1 in a purely price based selection, HAL reserves the right to seek revised offers from the same bidders or resolve the tie through a real-time reverse auction process.

d) If the lowest bidder has not offered full quantity, for the balance quantity, HAL reserves the right to source from other bidders.

e) Applicability of the relevant Taxes should be explicitly indicated by the bidder in his response in percentage and in absolute terms. In the absence of this input, the offer would be considered as all-inclusive and no further claims related to such taxes will be admissible.

f) 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. Commercial Bids of vendors not passing the technical gate will be returned in unopened condition.

g) Conditional discounts will not be considered in evaluation of tender.

9 QUALITY / INSPECTION a) Items shall be inspected by HAL Engine 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 Engine Division.

b) HINDUSTAN QUALITY INSTRUCTION HQI-Q-026 (LATEST ISSUE ) requirements are to be fulfilled.

c) Engine components are all airborne items that involve life critical/flight safety components. Airworthiness of these parts are utmost important and hence supplier should have quality assurance system procedure inline with HAL Quality Assurance.

d) Fabricated & finsihed components maintaining dimensions & geometrical tolerance are to be offered to HAL inspection before carrying out process operation along with their detail dimensional inspection reports.

e) HAL Quality Assurance will examine and certify the First off samples (First Article Inspection-FAI) and give their acceptance. Production batch in case of detail parts as well as assembly to be started only after FAI by HAL.

f) Sub-Contractor shall carry out detailed inspection on all these parts and record 100% dimension for each item and offer to HAL inspection for clearance and acceptance.

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.

11 DAMAGE/LOSS TO MATERIAL 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.

12 INDEMNITY BOND In case materials and/or assets (as listed in the Order) are supplied by HAL, the vendor shall furnish Indemnity Bond as per format attached to the Order prior to collection of material and assets from HAL. The value covered by the Indemnity Bond shall be Rs.----------------------‬. In case any loss or damage occurs, the vendor shall make good the loss on its own accord and continue the work or seek fresh material from HAL after compensating HAL for the value of loss/damage as assessed by HAL. In case the vendor fails to do so, HAL reserves the right to seek legal remedy for enforcing its claim.

13 REJECTION ALLOWANCE & RECOVERY a)The maximum permissible rejection allowance will be 5% of the quantity on Order (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.

b) In case the rejection exceeds the allowance value, HAL at its discretion may issue further material to complete the Order, but the value of materials rejected beyond the allowance value shall be paid by the vendor to HAL.

c) In the above case, the labour and other costs incurred by the vendor on the rejected item(s) up to the stage of rejection will not be paid by HAL.

d) Wherever defects are noticed by the Vendor in HAL supplied materials during machining/processing, the Vendor shall forthwith stop the operation and inform the Outsourcing Dept. of the concerned HAL Division. HAL after inspection of the material/part and verification of the claim will issue additional material if called for. HAL will also work out a mutually acceptable, fair and equitable compensation to the vendor for the work already done before the defect became apparent.

e) In any case, the rejected material will be returned to HAL by the vendor at his own expense unless HAL agrees otherwise.

14 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.

15 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.

16 DELIVERY SCHEDULE a) Delivery of sample will be 08 weeks from the dispatch of raw material. Bulk will be 12 weeks from the dispatch of raw material and Sample acceptance. Material will be loaded in staggered manner as per requirement and material availability. Sample quantity is desirable for avoiding rejections in bulk, but if the vendor decides to provide full quantity at once without a sample, then the delivery of 12 weeks will be considered from the dispatch of raw material

b) The time/date of delivery of the store mentioned in the Order shall be deemed to be the essence of the contract and delivery must be completed not later than the dates specified therein. Should the Vendor fail to deliver the stores within the prescribed period as per the Order or as mutually agreed later in writing with HAL, HAL shall be entitled at its option to seek compensation and redressal through any or some or all of the following as deemed appropriate:- i) 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. ii) Claim reimbursement under the Risk Purchase clause iii) To Short-Close/Terminate the Order

17 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.

18 ISSUE OF MATERIALS Materials are to be collected by the Vendor from HAL Engine Division Stores and finished or semi-finished items delivered to HAL Engine Division Stores or to any other destination as stated in the Order. No delivery charges will be paid by HAL unless it is provided for under any clause of the Order. The materials/other items received from HAL shall be properly identified with the order no, specification and quantity. These shall be protected from misuse, loss, damages and deterioration, properly stored at suitably identified and marked place under environmental conditions specified by HAL. Special Tools & Gauges, if any required, will be supplied on returnable basis subject to availability. All such Tools/ Gauges supplied by HAL and all other items fabricated by the Vendor using funding by HAL shall be returned to HAL immediately after completion of the task. Failure to do so will entail payment of financial compensation to HAL for the replacement cost of the items not returned or replacement with equivalent items in the same condition they were supplied/made.

19 PAYMENT TERMS a) The standard Payment Terms are 100% payment after receipt and acceptance of finished items at HAL Engine Division Stores. Payment to be effected through banking channels into the Bank account of the Vendor. Payment terms as negotiated and agreed will be stated in the Order. It shall be the vendor’s absolute responsibility to furnish to HAL the correct Bank Account details and to keep them up to date.

b) HAL is registered on TReDS platform (Trade Receivables Discounting Systems), as being promoted by GoI directive. It is suggested that all the MSME 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.

20 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.

21 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.

22 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 subcontractor) if so demanded by HAL and in a format specified by HAL

23 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.

24 CONFIDENTIALITY Vendor is given the drawings/ process sheets and other documentation for manufacture of the components required by HAL ………. 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.

25 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.

26 TERMINATION OF CONTRACT In the event of HAL Engine Division not being satisfied with the performance of the Vendor for any reason including breach of contract, or for HAL’s own convenience, HAL Engine 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 ransfer. 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.

27 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

28 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.

29 JURISIDICTION The Court at Bangalore, India only shall have jurisdiction to deal with and to decide any legal matter whatsoever arising out of this contract. This contract shall begoverned 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.

30 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.

31 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 toobtain 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.

32 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 scovered by HAL that the vendor has engaged any such individual/firm, and paid or intended to pay any amount, gift, reward, fees, commission orconsideration 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.

33 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.

34 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 ncorporating 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.

35 RAW MATERIAL, PACKING AND TRANSPORTATION a) Sub-contractor has to collect material & final part to be delivered to HAL Engine Division. No extra delivery charges will be paid by HAL. Incase of exigencies HAL may consider supplying the raw material or collection of finished / semifinished parts. For outstation vendor, HAL will supply raw material with one way fare and vendor has to deliver the parts to M/s HAL engine division on his own cost.

b) All parts (finished/semifinished) should be properly packed in acceptable condition and to be forwarded to HAL, Engine Division through reliable transport mode to avoid damage during transit. No extra delivery charges will be paid by HAL.

c) The packaging for parts should be fit to size and foam based sent through carton box.

d) The materials/other items received from HAL shall be properly identified with the order no, specification and quantity. These shall be protected from misuse, loss, damages and deterioration, properly stored at suitably identified and marked place under environmental conditions specified by HAL.

36 PRESERVATION OF MATERIALS & DRAWINGS a) HAL supplied drawings and other documents are sole property of Engine Division and needs to be preserved till the completion of purchase order . b) HAL supplied data, information, drawings, process sheets, documents etc., (hard copies and soft copies in CD/DVD) from the unsuccessful bidders as well as bidders not quoting against HAL’s requirement should immediately return the documents on completion of the bidding process.

37 TECHNICAL REQUIREMENTS & PROCESS APPROVAL a) All parts are to be manufactured exactly as per the HAL supplied drawing and process Sheets/Plan. However, if process sheets/plans are prepared by sub-contractor, the same need to be submitted to HAL-Methods Engineering department for approval before commencement of manufacturing.

b) Any alternate technology / methodology can be used for manufacturing of these parts only after prior approval of HAL Process Planning/Methods.

c) Intermediate & finsihed components should be submitted for inspection at HAL along with detail dimensional report & required documents.

d) Sub-contractors can send representative to study part/detail drawings at factory side.sub-contractor representative should carry with him company reference and valid identity at all times.

38 DRAWING CHANGES Sub-contractors shall implement minor drawing changes like dimensional change which does not effect the set-up and fixturing involved at no additional cost. These minor changes can include the following, inter alia. 1. Changes in nomenclature including changes in Drawing Number, Part Number, details in the Title Block, etc. which do not affect the unit material, unit SMH or other costs. 2. In case HAL supplies the material, any change in dimensions of the part which does not entail an increase in unit SMH by more than 5%. 3.Any change in material specifications which does not entail an increase in unit SMH by more than 5% for machining, processing, HT, etc. put together.

Major changes will involve renegotiation of the terms of the Order/Contract and amendment of the Order/Contract unless the vendor is ready to absorb the changes voluntarily.

39 DEDUCTIONS DUE TO INCOMPLETE OPERATIONS Payment for the partly finished line items: Based on inspection of the semi-finished items, the percentage completion of each item should be estimated by HAL, mutually agreed with the vendor and documented. Payment should be based on the prices in the Order/Contract for each item multiplied by the percentage completion for each item.

40 COUNTER TERMS AND CONDITIONS When counter terms and conditions of the business are offered by the bidder, HAL shall not be deemed to be governed by such terms & conditions unless written acceptance thereof has been given by HAL. No conditions & terms, notice of which has not been given in the tender by bidders submitting quotations will be considered by HAL, if put forward in subsequent correspondence and after placement of order.

41 RESPONSE/REGRET Vendor shall send Regret Reply in case the subject item is not covered in your range of products or is not willing to submit proposal.

42 DESPATCH DOCUMENTS a) Sub-contractor to provide below mentioned documents along with the supplies: 1. Delivery Challan ( Final & Intermediate Operations, if any) 2. Invoice 3. Raw material certificate 4. Material Consumption report 5. Detail Inspection documents 6. CoC ( Certificate of Conformity) 7. HAL supplied route card duly stamped for the operations carried. 8. Copy of HAL Material Gate Pass (Raw material & Intermediate Operation Movement if any) 9. Copy of last Technical Input / approved process sheet from HAL (if any)

b) Guidelines for preparing delivery documents i.There shall be a separte DC for each part loaded against each separte HAL material gate pass/ Dispatch Advice(DA). ii.Work Order No, Batch No, Quantity, Material Gate Pass No/Dispatch Advice No, PO NO to be mentioned in documents. iii.Quantity on documents shall match with delivered quantity. iv. Every batch of a particular part no delivery shall have an identification tag indicating the status of part viz: for HT, for Finishing, for Rejection etc.

c) Sub-contractor may please adhere to the above guidelines while preparing the dispatch documents. Consignments not accompanying any of the above documents will be returned back to the sub-contractor.

43 SAFETY POLICY AND OCCUPATIONAL HEALTH Vendor to comply with the statutory, regulatory & other requirements, such as adhering to quality standards pertaining to occupational health and safety measures as per ISO:45001:2018

44 PURCHASE PREFERENCE TO MSE'S a) If L1 vendor is not a MSE, only those MSEs (L2, L3, etc. among MSEs) quoting within L1+15% band shall be invited to meet L1 price. Up to 25% of the tendered quantity shall be offered to the MSEs agreeing to supply at L1 rate. For this, first the L2 MSE within the price band shall be invited to meet the L1 price. If L2 does not agree to supply at L1 rate or does not agree to supply the full 25% quantity, then L3 MSE shall be approached for the remaining quantity, and so on. If none of the MSEs in the price band do not agree to supply at L1 rate, the full quantity shall be ordered on the original L1 vendor. b) MSE Vendors need to upload latest MSE Certificate along with Tender.

45 INTEGRITY PACT For purchase orders valued at Rs.5 crores & above (as applicable from time to time), the successful sub-contractor will have to submit an Integrity Pact with HAL.

46 L1 vendor cannot claim for awarding with purchase order by default as the right for placement of purchase order resides with Division.

Note: Please fill all the columns mandatorily.

ENGINE DIVISION HINDUSTAN AERONAUTICS LIMITED POST BAG NO. 9310 BENGALURU - 560093. INDIA.

Tender Ref. No:

NAME OF WORK: SUB CONTRACT.

Name of the sub-contractor/Firm

Qtn. Reference No. & Date

SL. No. PART NO. /DESCRIPTION/DRW ISSUE sub-contractor Scope of works Raw Material (RM) Spec / RM desc. RM UNIT COST. INR Order qty Unit Price ( INR) SGST% CGST% IGST% REMARKS

Please provide the GST applicability with breakup like CGST, SGST, IGST etc seperately in above mentioned columns: Also provide the GST registration no. HSN No & SAC no. Validity of Quotation (Minimum 120 days Required) Indicate Accepted / Not Accepted

Any other points:-

Note: Please fill all the columns.