Nepal Telecom

Nepal Telecom 

Nepal Doorsanchar Company Limited 


(Nepal Doorsanchar Company Limited) 

Tender No. NDCL/14/065- 66 

For 

Supply, Delivery, Installation Supervision, Testing & 

Commissioning Of Enterprise Resource Planning (ERP) 

System 

January, 2009 

Material Management Department, TEL : 977-1-4227878 

Central office, P.O. Box 5406, FAX : 977-1-4227260 

Doorsanchar Bhawan, Bhadrakali Plaza 

email:ntc.mmd@ntc.net.np 

Kathmandu, 

Nepal. 

Tender No: NDCL/14/ 065 - 66 for Supply, Delivery, Installation Supervision, Testing & Commissioning of ERP System. 

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Table of Content 

S/N Section Description 

COMMERCIAL SPECIFICATION 

1. I Important Notice to Bidders (INB) 

2. II Invitation for Bids (IFB) 

3. III Instructions to Bidders (ITB) 

4. IV Conditions of Contract (COC) 

5. V Sample Forms 

Bid Form (Sample Form 1) 

Bid Security Form (Sample Form 2) 

Manufacturer Authorization Letter (Sample Form 3) 

Performance Security Form (Sample Form 4) 

License Form (Sample Form 5) 

6. VI Schedule of Requirements (SOR) 

7. VII Schedule of Prices (SOP) 

TECHNICAL SPECIFICATION 

8. VIII Technical Specifications 

9. Chapter 1 General Technical Specification 

10. 

Chapter 2 to 

Chapter 15 

Detail Technical Specification 

Annex-I NT Chart Of accounts 

Annex-II List of accounting centres 

Annex-III Accounting Centres Hierarchy 

Annex-IV General Ledger 

Annex-V Revenue & Inter Administrative Accounting 

Annex-VI Accounts Payable 

Annex-VII Fixed Assets 

Annex-VIII Financial Budgeting & Treasury Management 

Annex-IX Procurement 

Annex-X Inventory Management 

Annex-XI Human Resource & Payroll Management 

Annex-XII Deployment Detail of Customer Billing Server and Network 

Annex-XIII Specification for IBM compatible Computers & Laser 

Printers 

Annex-XIV Transaction Volume 

Annex-XV Phase wise Implementation List 

Annex-XVI Networking Details 


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SECTION I: IMPORTANT NOTICE TO BIDDERS (INB) 

All the documents to be submitted by the Bidder shall be written in English language. 

Part A 

Bidders are requested to study the tender document carefully. Absence of any of the following documents will result 

in the rejection of the Bid. 

a. A clause-by-clause comments on Conditions of Contract and Technical Specifications. 

b. All the pages containing Conditions of the Contract and Technical Compliance Statement shall be signed and 

stamped with official seal by the bidder (authorized person). 

c. Detailed Technical description of both the Hardware and ERP Software shall be included along with the bid document. 

d. Certificates from user administrations for experience of implementation of offered ERP system as specified in Clause 

no. 1.4 of Section VIII Chapter 1”General Technical Specification”. 

e. ISO 9000 series certificate for offered servers. 

f. Manufacturing certificates for offered SAP or ORACLE products as specified in Clause no. 1.4 of Section VIII: 

Technical Specification, Chapter 1"General Technical Specification". 

g. Certificates from user administrations for software development and implementation experience as specified in 

Clause no. 1.4 of Section VIII: Technical Specification, Chapter 1"General Technical Specification". 

h. Documentary evidence related to Local Software Support House requirements as specified in Clause no. 23 of 

Section III: ITB. 

h. All the Documents supporting as evidence for all the clauses of eligibility of product, implementer of the ERP 

software, local software support house shall be the Authentic Documents (True copy of documents with the letter head 

of the issuing authority duly signed with date by the authorized person, stamped with official seal and with name, 

designation of the signatory in the letter). 

i. The Power of attorney and signature specimen of the authorized person in a separate sheet shall be submitted along 

with the Bid. 

Part B 

The following documents shall be submitted by the Bidders for bid opening purpose, without which the 

bid shall be rejected. 

a. Bid Form duly signed with date by the authorized person and stamped with official seal as per Section V: Sample 

Form No. 1 “Bid Form” enclosed in the bid document. 

b. Bid Security furnished in accordance with Section III, Clause no. 7, and as per Sample Form No. 2 “Bid Security 

Form” enclosed in the bid document. 

c. Price Schedule duly signed with date by the authorized person and stamped with official seal in accordance with 

Section VII: SOP. 


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d. Manufacturer’s/Producer’s Authorization Letters as specified in Section III: Instruction to Bidders Clause no. 16. 

e. In case, the Bidder wishes to offer any discount or any goods/service free of cost, such letter of discount/free of cost 

offer applicable to the main offer shall be attached to the Bid Opening Documents. The offered discount will not be 

considered for evaluation of bid if such letter is not attached with bid Opening Document. 

f. The unit price of all goods, services and inland delivery including free of cost goods, services and inland delivery shall 

be quoted in section VII: Schedule of Price (SOP). The bidder shall clearly mention as “Free of Cost” (FOC) in the 

‘Total CIF price’ and 'Total Inland Delivery price' in their respective column of price schedule. The prices of the free of 

cost goods, services and inland delivery and/ or discount shall be proportionately absorbed in the unit price of the 

goods, services and inland delivery at the time of contract and shall be applicable in all subsequent purchases also. 

g. The Power of attorney and signature specimen of the authorized person in a separate sheet shall be submitted along 

with the Bid. 

Part C 

In order to simplify the process of Bid opening and also to economize the time consumed during the Bid opening, 

the Bidders are required to submit the above documents mentioned in Part B in a separate sealed envelope 

marked as " DOCUMENT FOR BID OPENING". Otherwise, the bidder shall be fully responsible for the probable 

consequences that may result therein after. 

Important Conditions of Contract (COC) 

Part D 

a. Bids with deviation in Supply, Delivery, Installation and Commissioning period as mentioned in Clause no. 5 of 

Section IV: Conditions of Contract shall be rejected. 

b. Bids with any deviation in Warranty requirements as given in Clause no. 6 of Section IV: Conditions of Contract shall 

be rejected. 

c. Bids with any deviation in Payment Terms as mentioned in Clause no. 7 of Section IV: Conditions of Contract shall be 

rejected. 

d. The bid shall be rejected if the Bidder fails to comply with Taxes and Duties as per Clause no. 11 of Section IV: 

Conditions of Contract. 

e. Bids with any deviation in the major clauses, marked with (*), shall also be rejected. 

Technical Compliance Statement 

Part E 

In order to assist the evaluation process, the Bidders shall mention the relevant Clause No., Page No., Chapter 

/Section/Volume of the offered bid document and/or the brochure & catalogue, wherever applicable, for the purpose of 

verification of their Technical Compliance Statements. 

End of Section I: Important Notice to Bidders 


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SECTION II: INVITATION FOR BIDS (IFB) 

Date: January, 2009 

Tender No: NDCL/14/ 065-66 

1. Nepal Telecom (Nepal Doorsanchar Company Limited) intends to establish the ERP system to connect all of its 

accounting centers throughout the country. For this purpose, Nepal Telecom invites sealed bids NDCL/14/065 - 66, for 

the Supply, Delivery, Installation Supervision, Testing and Commissioning of Enterprise Resource Planning 

(ERP) System. 

2. Interested bidders may obtain further information from the office of: 

Nepal Telecom (Nepal Doorsanchar Co. Ltd.) 

Material Management Department 

Central Office, Doorsanchar Bhawan, Bhadrakali Plaza, 

Kathmandu, NEPAL. 

Tel No. : 977-1-4227878, 4210309 

Fax No. : 977-1-4227260 

3. A complete set of bidding documents may be purchased by any interested bidder on the submission of a written application 

to the above and upon payment of a non-refundable fee of US$. 350.00 (US Dollars: Three Hundred Fifty only) or EUR. 

250.00 (In words EURO: Two Hundred Fifty) or NRs. 25,000.00 (Nepalese Rupees: Twenty Five Thousand only). 

If interested bidder wishes to collect the document by courier service additional US$. 70.00 (US Dollars: Seventy 

only) or EUR 50.00 (in words EURO: Fifty only) or NRs. 5,000.00 (Nepalese Rupees: Five thousand only) will be 

charged to the bidder. 

4. Bid must be accompanied by a Bid Security of US$ 131,000.00 (In words US Dollars: One Hundred Thirty One 

Thousand only) or EUR. 91,500.00 (In words EURO: Ninety One Thousand Five Hundred only) or in NRs. 

9,901,000.00 (In words Nepalese Rupees: Ninety Nine Hundred One Thousand only). 

The Bid security must be furnished or counter guaranteed by one of the following banks in Nepal without which bid 

shall be rejected; 

1. Nepal Rastra Bank 

2. Standard Chartered Bank Nepal Limited 

3. Nabil Bank Limited 

4. Himalayan Bank Limited 

5. Nepal Investment Bank Limited 

6. Bank of Kathmandu Limited 

7. Nepal Industrial and Commercial Bank Limited 

8. Kumari Bank Limited 

9. Everest Bank Limited 

10. Macchapuchhere Bank Limited 

11. Siddhartha Bank Limited 

12. Nepal SBI Bank Limited 

13. Laxmi Bank Limited 

14. Nepal Bangladesh Bank Limited 

15. Lumbini Bank Limited 

5. Bid documents will be available in soft copy (in CD) as well as in hard copy. The offer shall be made in the form of soft copy 

in CD (in Word, Excel and PDF Format) as well as in documentation form. Soft copy is used for the easiness of bid 

preparation and for the easiness of bid evaluation only. In case of discrepancy between the two, the hard copy shall 

prevail. 

End of Section II: Invitation for Bids 


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1 Cost of Bidding 



SECTION III: INSTRUCTIONS TO BIDDERS (ITB) 

The bidder shall bear all cost associated with the preparation and submission of its bid, and Nepal Telecom will in 

no case be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process. 

2 Bidding Documents 

2.1 The goods/service required, bidding procedures and conditions of contract are prescribed in the Bidding Documents. 

In addition to the Invitation for Bids, the Bidding Documents include: 

(a) The Instructions to Bidders; 

(b) Conditions of Contract; 

(c) Technical Specifications; 

(d) Schedule of Requirements; 

(e) Schedule of Prices; 

(f) Bid Form; 

(g) Bid Security Form; 

(h) Manufacturer’s Authorisation Letter; 

(i) Performance Security Form; 

(j) License Form 

2.2 The bidder is required to examine all Instructions, Commercial Terms and Conditions, Forms, Technical 

Specifications, Schedule of Requirements etc. as included in the Bidding Document. Failure to furnish all information 

as required by the Bidding Documents or submission of an incomplete and / or partially quoted bid will remain at the 

bidder’s risk and may result in the rejection of its bid. 

3 Clarification of Bidding Documents 

3.1 A prospective bidder requiring any clarification of the Bidding Documents may notify Nepal Telecom in writing at the 

mailing address indicated in the invitation for Bids. Nepal Telecom will respond in writing to any request for clarification 

of the Bidding Documents received not later than fifteen (15) days prior to the deadline for the submission of bids. 

Written copies of the Nepal Telecom's response (including an explanation of the query but without identifying the 

source of the inquiry) will be sent to all prospective bidders who have purchased the bidding document. 

3.2 Pre-Bid Conference 

Nepal Telecom shall conduct Pre-Bid Conference in order to clarify issues and queries raised by bidders. 

The Pre-Bid Conference shall be held fifteen (15) days prior to the deadline for the submission of bids. The bidders 

who have purchased the original bid document shall be eligible to participate in Pre-Bid Conference. The number of 

the participants from each bidder organization shall not exceed four (4). Exact date, venue and time of Pre-Bid 

Conference shall be notified to bidders at appropriate time. 

4 Amendment of Bidding Document 

4.1 Nepal Telecom, may, for any reason, whether at its own initiative or in response to a clarification requested by a 

prospective Bidder, may issue clarification and corrections Seven (7) days prior to the deadline for the submission of 

bids without affecting the condition and specifications. 

4.2 Such clarifications and corrections will be notified in writing to all prospective bidders who have purchased the bidding 

documents. Inclusion of such clarification and corrections will be binding on them. 

4.3 In order to provide Bidders reasonable time in which to take the amendment into account in preparing their bids, 

Nepal Telecom may at its discretion extend the deadline for submission of bids. 


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5 Composition of Bid Document 

The bid documents shall comprise documents and forms duly filled with date and signed by authorised person as 

mentioned in the Section I: ‘Important Notice to Bidders’. 

5.1 Submission of the following documents and forms along with bid document is mandatory, without which, the 

bid shall be rejected. 

(a) 

(b) 

(c) 

Bid Form (Sample form No. 1) in accordance with Section V duly filled with date and signed by authorised 

person. 

Bid Security furnished in accordance with Clause no. 7 of Section III: Instructions to Bidders and the Bid 

Security Form (Sample form No. 2) duly filled with date and signed by authorized person. 

Price Schedule in accordance with Section VII and Clause no. 6 of Section III: Instructions to Bidders duly 

filled with date, signed by authorized person and sealed with official stamp. 

(d) Manufacturer’s/Producer’s Authorisation Letters if the bidder is not a manufacturer (as per Sample form No. 3) 

for the offered items. (Please refer to clause d.: Part-B of Section I: Important Notice to Bidders ) 

(e) 

(f) 

The Power of attorney and signature specimen of the authorized person in a separate sheet shall be 

submitted along with the Bid. 

Clause by clause comments on Conditions of Contract and Technical Specification. (Please refer to Clause a.: 

Part-A, and Part-E of Section I: Important Notice to Bidders) 

(g) Detail Technical description of the items to be supplied. (Please refer to Clause c.: Part-A of Section I: 

Important Notice to Bidders also.) 

(h) 

Certificates for supply records from user administrations for the implementation of the offered ERP 

software. (Please refer to Clause d: Part-A of Section I: Important Notice to Bidders also.) 

(i) SAP or Oracle Certificate for producing offered ERP software (Please refer to Clause f.: Part-A of Section I: 

Important Notice to Bidders also.) 

(j) 

(k) 

(l) 

(m) 

(n) 

Certificates for implementation from user administrations of the offered ERP software (Please refer to 

Clause g.: Part-A of Section I: Important Notice to Bidders also.) 

Documents evidencing Local Software House requirements as specified in Clause 23 of Section III:I TB. 

All the Documents supporting as evidence for all the clauses of eligibility of product, implementer of the 

ERP software, local software support house shall be the Authentic Documents (True copy of documents 

with the letter head of the issuing authority duly signed with date by the authorized person, stamped with 

official seal and with name, designation of the signatory in the letter). 

All the pages containing Conditions of the Contract and Technical Compliance Statement shall be signed by 

the bidder (Authorized person) and stamped with official seal. The signature specimen of the authorized person 

shall be submitted along with the Bid. 

The bidder shall submit its Audited Financial Statement and Annual Reports for last three (3) years along with 

the bid document. 


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The Bidder shall submit the above documents from (a) to (e) in 3 rd envelope sealed and marked as “Document for bid 

Opening” and remaining documents from (f) to (n) shall be enclosed in the 1 st envelope “Original” & 2 nd envelope 

“Copy” as mentioned in Clause 9 of Section III: Instructions to Bidders. 

5.2 Compliance Statements to Commercial & Technical Requirement 

5.2.1 In the offer, the bidder shall include clause by clause statement and sufficient documentation such that the Nepal 

Telecom can validate the compliance statements. In the statement of compliance, the bidder shall state:- 

a. “FULLY COMPLIANT” if systems and functions offered fully meet the tender requirement. 

b. "PARTIALLY COMPLIANT" if the systems and functions offered meet the requirement partially. The bidder 

shall state the reason why the offer is partially compliant. However, if the bidder is able to fulfill the specified 

requirement later, the time schedule for this shall be stated. In such cases, the bidder shall clearly mention 

the extent to which other requirements or specifications are affected. 

c. "NON COMPLIANT” if the systems and functions can not meet the requirements. The bidder shall also state 

reasons for it. 

d. Compliance statements such as 'Agreed', 'Noted', 'OK' Tick mark & 'Understood' etc. shall not be 

acceptable and shall be considered “Non Compliant” 

Bidders shall mention, along with the compliance statement, the relevant Clause No., Page No., Chapter 

/Section/Volume of the offered bid document and/or the brochure & catalogue, wherever applicable, for 

the purpose of verification of their Commercial & Technical Compliance Statements. 

5.2.2 In case of absence or unclear statements of compliance for any specified requirement, the Nepal Telecom will 

interpret that particular requirement as being "NON COMPLIANT". 

6 Bid Price & Bid Currency 

The bidder shall quote the unit prices and total bid prices of the goods it proposes to supply under the contract on the 

appropriate price schedule attached to this document. 

6.1 The prices shall be quoted in US$ or in EURO on CIP (by air) to the Nepal Telecom’s IT Directorate Store, 

Kathmandu as per Section VI: Schedule of Prices (SOP). The prices shall be exclusive of taxes/duties such as 

VAT, Local Development Tax, Custom Duties, and Security Tax etc. applicable at the port of entry in Nepal. 

6.2 In case of Nepalese Bidder the prices shall be quoted in NRs. (Nepalese Rupees) on CIP Nepal Telecom’s IT 

Directorate Store, kathmandu as per the Section VII: SOR. The prices shall be inclusive of Taxes/duties such as VAT, 

Local Development Tax, Custom duties, security tax etc. applicable at the port of entry in Nepal. 

6.2 The Bidder shall be responsible to pay withholding tax (TDS – Tax Deduction at Source) as per the Income tax 

law of government of Nepal applicable at the time of the payment. 

6.3 The prices shall be fixed and will not be subjected to any variation 

Any bid not submitted as per the clause No. - 6 shall be rejected. 

7 Bid Security 

7.1 Pursuant to Clause no. 4 of Section II, the bidder shall furnish, as part of its bid, Bid Security of US$ 131,000.00 (In 

words US Dollars: One Hundred Thirty One Thousand only) or EUR. 91,500.00 (In words EURO: Ninety One 

Thousand Five Hundred only) or in NRs. 9,901,000.00 (In words Nepalese Rupees: Ninety Nine Hundred One 

Thousand only). 


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. 

The bid security must be furnished or counter guaranteed by one of the Banks as mentioned in Clause no. 4 

of Section II: Invitation for Bid. 

7.2 Bid Security shall remain valid up to 23 rd July 2009 

7.3 Any bid not secured in accordance with Clause nos.7.1 and 7.2 shall be rejected. 

7.4 The bid security is required to protect Nepal Telecom against the risk of bidder's non-performance. 

7.5 The bid securities of all the bidders shall be discharged upon signing of the Contract and furnishing the Performance 

Security by the successful bidder, pursuant to Clause no. 4 of Section IV. 

7.6 The bid security shall be forfeited: 

a) If the bidder withdraws its bid during the period of bid validity specified by the bidder on the Bid Form; 

OR 

b) If the bidder, having been notified of the acceptance of its Bid by Nepal Telecom during the period of Bid validity, 

either fails or refuses to sign the contract agreement within thirty (30) days from the date of issuance of letter of 

intent; or fails or refuses to furnish the Performance Security in accordance with Clause no. 4 of Section IV: 

Conditions of Contract. 

8 Period of Validity of Bids 

8.1 Bids shall remain valid up to 23 rd June 2009 

Bids, not valid until the date mentioned above, shall be rejected. 

8.2 In exceptional circumstances, Nepal Telecom may solicit the bidder's consent to an extension of the period of validity. 

The request and the responses thereto shall be made in writing. The bid security provided under Clause no. 7 of 

Section III: Instruction to Bidders shall also be suitably extended. A bidder may refuse the request without forfeiting its 

bid security. A bidder granting the request will not be required nor permitted to modify its bid. 

9 Formats, Sealing, Marking and Signing of Bids 

9.1 The Bidders are required to submit the bids in three (3) separate envelopes each envelope sealed properly as follows: 

a) 1 st envelope with seal and marked as "Original", shall contain original documents as per Part A of 

Section I: Important Notice to Bidders, 

b) 2 nd envelope with seal and marked as "Copy", shall contain copy documents as per Part A of 

Section I: Important Notice to Bidders. 

c) 3 rd envelope with seal and marked as "DOCUMENT FOR BID OPENING", shall contain documents 

as per Part B of Section I: Important Notice to Bidders, 

In the event of any discrepancy between original and copy, the original shall prevail. 

9.2 The original and the copy or copies of the bid shall be typed or written in indelible ink and shall be signed by the Bidder 

or a person or persons duly authorised to bind the Bidder to the contract. All pages of the bid, except for unamended 

printed literature, shall be initialled by the authorized person or persons signing the bid. But, the pages containing 

Conditions of the Contract and Technical Compliance Statement shall be signed and stamped with official seal by 

the bidder’s authorized person. Please refer to Clause b.: Part A of Section I: Important Notice to Bidders also. 


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9.3 Any interlineations, erasures, or overwriting shall be valid only if they are initialled by the authorized person or persons 

signing the bid. Please refer to Clause b.: Part A of Section I: Important Notice to Bidders also. 

9.4 a) The inner and outer envelopes shall be addressed to the Nepal Telecom at the following address: 

The Managing Director, 

Nepal Telecom (Nepal Doorsanchar Company Limited.) 

Material Management Dept. 

Central office, Doorsanchar Bhawan 

Bhadrakali Plaza, 

Kathmandu, NEPAL. 

P.O.Box 5406 

Tel No.: 977-1-4227878 / 4210309 

Fax No.: 977-1-4227260 

b) The outer envelope shall bear "Invitation for Bids Tender No. NDCL/14/065-66, for “Supply, Delivery, 

Installation Supervision, Testing and Commissioning of ERP System" , “DO NOT OPEN BEFORE 

OPENING DATE " i.e. 24 th February, 2009 and indicate the name and address of the bidder to enable the 

bid to be returned unopened in case it is declared "late". 

9.5 If the outer envelope is not sealed and marked as required by Clause no. 9.4, the Nepal Telecom will assume no 

responsibility for the bid's misplacement or premature opening of the bid submitted. The bid thus received will be 

rejected. 

9.6 In order to facilitate evaluation of the Bid, the Bidder shall provide the complete bidding documents in hard copy as 

well as soft copy including Price Schedule, Schedule of Requirements, Compliance statements of both Commercial 

and Technical requirements, Other calculations etc. In case of discrepancy between hard copy and soft copy, hard 

copy shall prevail. 

10 Deadline for Submission of Bids 

10.1 Bids must be received by the Nepal Telecom at the address specified under Clause no.9.4 (a) not later than 

11:45 a.m. on 24 th February, 2009”. 

However, if the submission date is declared to be public holiday, the submission date will be postponed for the next 

working day at the said time. 

10.2 The Nepal Telecom may, at its discretion, extend this deadline for the submission of bids by amending the Bidding 

Documents in accordance with Clause no. 4 of Section III: Instructions to Bidders. 

11 Late Bids 

Any bid received by the Nepal Telecom after the date and the time of submission of bids pursuant to Clause 

no. 10 of Section III: Instructions to Bidders shall be rejected. 

12 Opening of Bids by the Nepal Telecom 

12.1 The Nepal Telecom will open bids, in the presence of bidders representatives who choose to attend, at 12:00 noon 

on 24 th February, 2009” at the Nepal Telecom, Central office, Doorsanchar Bhawan, Bhadrakali Plaza, Room 

No. 201. In case, the bid opening date happens to be an official holiday, the Nepal Telecom will open the bids in the 

following working day. The bidder representatives who are present shall sign a bid opening checklist evidencing their 

attendance. 


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12.2 The bidder's names, bid prices, modifications, bid withdrawals and the presence or absence of the requisite bid 

security and such other details as the Nepal Telecom at its discretion, may consider appropriate will be announced at 

the opening. 

12.3 The Nepal Telecom shall prepare minutes of the bid opening. 

13 Supply, Delivery, Installation Supervision, Testing and Commissioning Schedule 

Supply, delivery, installation Supervision, Testing and commissioning of the ERP system shall be made to Nepal 

Telecom, as mentioned in Section IV: Conditions of Contract, Clause no. 5 "Supply, Delivery, Installation supervision, 

testing and Commissioning of the system”. Bids with deviation in Supply, Delivery, Installation supervision, 

testing & Commissioning period as mentioned in Clause no.5 of Section IV: Condition of Contract by more 

than four (4) weeks shall be rejected. 

14 Warranty 

Bid with any deviation in Warranty as mentioned in Clause No. 6 of Section IV: Conditions of Contract shall be 

rejected. 

15 Payment 

Bid with any deviation in Payment Term as mentioned in Clause No. 7 of Section IV: Conditions of Contract 

shall be rejected. 

16 Manufacturer’s Authorisation Letters 

The Bidder shall submit Manufacturer’s/Producer’s Authorization Letters for the offered items (Hardware and ERP 

System) (Section V: Sample Form No. 3 “Manufacturer’s/Producer’s Authorisation Letters” enclosed in the bid 

document) from the Manufacturers of the Servers and Produce’s of ERP Software. 

If the bidder itself is the manufacturer/ and producer of the goods (Hardware and ERP System), then the bidder shall 

provide the proof of it being the manufacturer/producer and need not to provide the authorization for the goods 

(Hardware and ERP System) it manufactures/ and produces. 

If the Bidder is not the manufacturer/producer of the goods (Hardware and ERP System), nonsubmission 

of Manufacturer’s/ and Producer’s Authorization Letters from the Manufacturers/ and 

Producer shall result in rejection of the bid. 

17 Bid Evaluation and Award Criteria 

17.1 In case a Bidder offers one or more alternate or optional offer(s) in addition to the main offer, Nepal Telecom will 

consider only the main offer for evaluation purpose, and under no circumstances, evaluation will be influenced by 

anything mentioned in alternate or optional offer(s). 

However, based on cost-benefit and/or technical analysis, Nepal Telecom, if deemed necessary, may consider 

alternate or optional offer (s) during Contract negotiation with the successful Bidder. 

17.2 Preliminary Examination 

17.2.1 The Nepal Telecom will examine the bids to determine whether they are complete, whether any computational 

errors have been made, whether required sureties have been furnished, whether the documents have been 

properly signed, and whether the bids are generally in order. 

17.2.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy between the unit price and the 

total price, which is obtained by multiplying the unit price and quantity, the unit price shall prevail, and the total 


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price will be corrected. If there is a discrepancy between words and figures, the amount in words will prevail. 

Incase of discrepancy between total quoted price in the bid form and the bill of quantity or price schedule, the 

lowest total price shall prevail for evaluation. If there is a discrepancy between the hard copy and soft copy, the 

hard copy shall prevail. If the Supplier does not accept the correction of the errors, its bid will be rejected, 

and its bid security may be forfeited. Nepal Telecom reserves rights to award the tender to the next lowest 

bidder or may go for re-tender whichever is convenient. 

17.2.3 The Nepal Telecom may waive any minor informality, nonconformity, or irregularity in a bid, which does not 

constitute a major material deviation, provided such waiver does not prejudice or affect the relative ranking of any 

Bidder but Bids with any deviations to the major Commercial and Technical Clauses marked with asterisk 

(*) shall be considered as major deviation and the bid with such major deviation shall be rejected. 

Prior to the detailed evaluation, the Nepal Telecom will determine the substantial responsiveness of each bid to 

certain critical provisions stipulated in the Nepal Telecom tender document. For the purpose of this clause, a 

substantially responsive bid is the one, which conforms to all the terms and conditions of the bidding documents 

without major material deviations. Deviations from, or objections or reservations to critical provisions, such as 

those concerning Bid Security, Payment Terms, Applicable Law and Taxes and Duties, Warranty, Supply, 

Delivery, Installation and Commissioning and the following technical requirements marked with asterisk (*) will be 

deemed to be major deviations. The Nepal Telecom determination of a bid’s responsiveness will be based on the 

contents of the bid itself without recourse to any extrinsic evidence. 

Major Clauses with Asterisk Mark (*) 

Commercial Clauses 

(Section IV: COC) 

Technical Clauses 

(Section VIII: Technical Specification) 

• Clause No. 4 Section IV • Chapter 1, Clauses No.: 1.2, 1.3, 1.4, 1.12.25 

• Clause No. 5 Section IV 

• Chapter 10, Clause No.: 10.1.1, 10.1.5.2, 

10.1.7.1, 10.2.5, 10.4, 10.7, 10.10, 10.12, 

10.12.2.1, 10.12.4 

• Clause No. 6 Section IV • Chapter 11, Clause No.: All the clauses 

• Clause No 7 Section IV 

• Clause No. 11 Section IV 

17.2.4 If a bid has one or more major deviations, it will be rejected by the Nepal Telecom and will not 

subsequently be made responsive by the Bidder by correction of the nonconformity. 

17.3 Detailed Evaluation 

17.3.1 Detailed evaluation shall be carried out for those Bids, which are found to be responsive after preliminary 

examination as per above Clause no. 17.2. Detailed evaluation shall be based on clause by clause compliance 

statements or comments on Condition of Contract and Technical Specification as well as technical details, 

catalogues, brochures etc. furnished by each bidder. 

17.3.2 Once the bids are considered substantially responsive after detailed evaluation, all those responsive bids shall be 

judged from financial evaluation perspective only and no weightage shall be given to other technical details or 

parameters or additional features and facilities of the offered products. 

17.3.3 For evaluation of the bids, in addition to the bid price and other commercial and technical requirements, the 

following factors shall be taken into consideration for evaluation purpose: 

17.3.3.1 If the offered quantity is not sufficient to meet The Nepal Telecom’s requirement, required quantity will be 

loaded to fulfil the requirement and price will be adjusted accordingly taking into consideration the offered unit 

price of the same bidder. 


12



17.3.3.2 If some required items are missing in the offer, then the highest price among the 

qualified bidders will be considered for evaluation purpose and loaded to bring all the bidders in equal footing. 

However, if the bidder who misses/short supplies the required items happens to be the winner, the 

missed/Short supplied items shall be provided free cost to the Nepal Telecom. If major items, without which 

very purpose of bidding will not be fulfilled, are missing, the bid shall be considered non-responsive and shall be 

rejected. 

17.3.3.3 Supply, Delivery, Installation and Commissioning 

If the offered Supply, Delivery, Installation and Commissioning periods are more than the period specified 

in Clause no. 5 of Section IV, Conditions of Contract, the price adjustment will be made by loading the 

bid price by half percent (0.5%) of the total quoted price per week for the delayed period up to four (4) 

weeks. Bids with deviation by more than four (4) weeks will be rejected. 

17.3.4 If deviations are found in eligibility criteria of product, implementer, local software support house, major clauses or 

certain critical issues on both technical & commercial requirements, the bid will be rejected and will not be 

considered for further evaluation and financial comparison. 

17.4 Contract Award 

Based on evaluation as per above clause nos.17.1/17.2/17.3, the lowest evaluated priced bid among all 

responsive bids will be selected as the successful bid. As financial evaluation shall be done as per Clause no. 

17.3.3, total evaluated price may differ from the price quoted by the bidder in its price schedule. Financial 

comparison shall be based on “evaluated price” and not “offered price”. However, the final total contract price shall 

be finalized during contract negotiation with the successful bidder. The Nepal Telecom will subsequently issue a 

Letter of Intent (LOI) to initiate negotiation between the bidder and Nepal Telecom. Upon successful negotiation, 

Nepal Telecom shall award the Contract to the successful Bidder. 

18 Nepal Telecom's Right to accept or reject any or all Bids 

Notwithstanding Clause no. 17, Nepal Telecom reserves the right to accept or reject partially or fully any bid, and 

to annul the bidding process and reject all bids, at any time prior to award of contract, without thereby incurring 

any liability to the affected bidder, or bidders or any obligation to inform the affected bidder or bidders of the 

grounds for the Nepal Telecom's action. 

19 Nepal Telecom's Right to Vary Quantities 

The Nepal Telecom reserves the right at the time of award of contract to increase or decrease by up to 20% of the 

quantity of goods and services specified in the Schedule of Requirements without any change in unit price or other 

terms and conditions. 

20 Signing of Contract 

After the receipt of the LOI (Letter of Intent) from the Nepal Telecom, the successful bidder shall send its authorized 

representative within fifteen (15) days for contract negotiation and signing the contract. At the time of signing the 

contract, supplier shall submit a Performance Security in the form of bank guarantee for 10% of the amount of the 

Contract in the same currency as that of the Contract or equivalent in US$. 

Non-submission of performance bond at the time of signing the contract may lead to the cancellation of the 

Contract. 

There will be a separate contract for Annual Maintenance Contract (AMC) and Installation and commissioning by 

Local Software Support House in other accounting centres apart from eight accounting centres to be implemented by 

the Bidders as specified in Clause 5 and 6 of Section IV, Conditions of Contract. 


13



21. Local Agent 

The bidder selected for Contract award shall appoint a Local Agent prior to Contract signature and conduct all 

correspondences through the Local Agent if the bidder is from outside Nepal. While appointing the local agent in 

Nepal, the successful bidder shall declare the percentage of commission and currency of payment payable to the local 

agent at the time of signing of the contract. 

22. Bidder’s Experience and Field Proven Software 

22.1 The offered ERP Software product shall be of latest version either from SAP or from Oracle. 

22.2 The bidder shall be either manufacturer of the ERP software or the authorized dealer of the manufacturer of the 

ERP software. 

22.3 The Bidder shall have software development and implementation experience of at least five years on the date of 

bid opening. The Bidders shall provide proof of being software developer and implementer for at least five years 

on the date of bid opening. 

22.4 The Bidder shall have experience of implementation of proposed ERP system in two telecom companies having at 

least combined subscriber base of one million telephone lines (PSTN/CDMA/GSM) with user base of 100 users in 

any of above two companies and shall provide authentic certificates from those two user administrations along 

with the Bid. 

Or 

The bidder shall have implementation experience of the proposed ERP System in two utility companies 

(Telecom/Electricity/Water Supply/Gas Supply) companies having at least 6000 employees and annual turnover 

of at least USD 300 Million. 

22.5 If the bidder submits bid in Joint venture, then joint venture agreement shall be submitted. In case of joint venture, 

each member of the joint venture agreement shall meet the eligibility criteria as mentioned in this clause. Further, 

the prime responsibility among the joint venture partners shall be specified in the bid documents and Nepal 

Telecom shall sign the contract only with the Prime responsible party, if contract is awarded. 

22.6 The bidder shall submit ISO 9000 series certificate for their offered servers 

22.7 The Bidders shall specify and submit details of the Local Support software House as per the Clause no. 23, 

Section III: ITB 

22.8 The Bidders shall provide the names, addresses, and telephone; fax numbers and e-mail address of the user 

administrations whose certificates have been provided. Nepal Telecom reserves the right to substantiate the 

bidder’s claim, with the concerned administrations, about the satisfactory performance of the equipment supplied 

and their experiences and details of special problems (if any) that have been encountered with the hardware or 

software in actual service. 

22.9 The Bidders shall provide its company profile and audited financial statement of last three years. 

22.10 In case of Nepalese Bidder, Bidder must be registered in Nepal as per the Nepal Government Law. Bidder shall 

submit Local PAN and VAT certificate along with bid Document. 

23 Local Software Support House 

The bidder shall specify the Local Software Support House in the bid document. The Bidder shall involve Local 

Software Support House during entire project period including warranty and AMC. Bidder must submit the signed 


14



MOU document between bidder and Local Software Support House specifying roles and responsibilities at the time of 

submission of bid. 

Eligibility criteria of Local Software Support House 

23.1 It shall have Oracle Certified Professional (OCP) manpower on ORACLE RDBMS. Certificate of the same 

shall be submitted. 

23.2 The Bidder shall train at least 2 Professionals of Local software support house on the offered ERP Software 

before finalization of requirement analysis. These Professionals shall be made capable to customize offered 

ERP software. 

23.3 Company profile and audited financial statement of last three (3) years of local software support house shall 

be provided. 

23.4 It must have undertaken at least 2 financial / accounting database software projects on ORCALE RDBMS. 

Details of such projects shall be submitted along with the bid document. 

23.5 Evidence of at least Five years of experience in software development and customisation shall be provided. 

23.6 Organization structure of Local Software Support House and roles of each unit shall be provided. 

23.7 Local software support house shall submit PAN and VAT certificate along with bid Document. 

24. Nepal Telecom Reserves Right to Accept or Reject the Services under the Phase-II Implemenation 

Nepal Telecom reserves the right to accept or reject the Services under the Phase-II Implementation depending upon 

the successful and satisfactory implementation of the Phase-I as mentioned in the Section VIII: Technical 

Specification, Chapter 12 “Detail Technical Specification: Acceptance Testing”. 

25. Site visit for the inspection of the Implementation of the Offered ERP System 

During evaluation, Nepal Telecom’s professional team may visit site where the offered ERP 

System has been implemented and is in operation, in order to assess the implementation and 

performance of the ERP System. 

Nepal Telecom may choose a suitable site in the country other than the country of Bidder as per the supply 

records certificates. Nepal Telecom may visit the manufacturer’ premises if necessary. Nepal Telecom shall 

perform tests based on the tender specifications and offered bid document. 

The cost of the visit shall be borne by Nepal Telecom and the duration shall be of one week. The 

Bidder shall arrange with the operator/Administration for the tests and other demonstrations. 

End of Section III: Instructions to Bidders 


15



SECTION IV: CONDITIONS OF CONTRACT (COC) 

Clause No. 

Clauses 

1 Definitions 

2 Country of Origin 

3 Standards 

4 Performance Security 

5 Delivery, Installation, Testing & Commissioning 

6 Warranty 

7 Payment 

8 Contract Amendments 

9 Assignment 

10 Applicable Law 

11 Taxes and Duties 

12 Liquidated Damages 

13 Force Majeure 

14 Insurance 

15 Patent Rights and Software License 

16 Documents 

17 Additional Order 

18 Termination of Contract 

19 Arbitration 

20 Training 

21 

Inspection & Tests 

22 Price of Spare parts (Price Escalation Formula) 


16



SECTION IV: CONDITIONS OF CONTRACT (COC) 

Clause 

No. 

1 

Definitions 

Particulars of Nepal Telecom’s Requirements 

In this contract the following terms shall be interpreted as indicated: 

a) "The Contract" means the agreement entered into between the NEPAL 

TELECOM and the Supplier, as recorded in the Contract Form signed by the 

parties, including all amendments and appendices thereto and all documents 

incorporated by reference therein. 

b) "The Total Contract Price" means the total price of all the goods and services 

included in the contract which will be payable to the Supplier on the fulfillment of 

all obligations under the contract. 

c) "The Contract Price" means the price of individual item listed in the Price 

Schedule and Quantity thereof of the Contract. 

d) "The Goods" means all of the hardware and software, which the Supplier is 

required to supply to the Nepal Telecom under the Contract. 

e) "Nepal Telecom" means Nepal Doorsanchar Company Limited. 

f) “MMD” means Material Management Department of the Nepal Telecom. 

The Bidder shall 

state as : Fully 

Compliant/ Partially 

Compliant /Non 

Compliant 

g) "The Supplier" means the individual or firm supplying the goods under this 

contract. 

h) "IT Directorate" means Information Technology Directorate of Nepal Telecom 

Country of Origin 

2 

The bidder shall mentioned country of origin of all the goods offered in accordance 

with the section VII and the bidder shall not deviate from the offered country of 

origin at the time of signing of the contract. 

Standards 

3 The goods supplied under this contract shall conform to the standards mentioned 

in the Technical Specifications. 

4 Performance Security 

The successful bidder shall submit bank guarantee as performance security in 

accordance with the Sample No.4 enclosed in the bid document. The currency of the 

bank guarantee shall be in currency of Contract or equivalent amount in US$. The 

validity of the bank guarantee shall cover the warranty period as mentioned in the 

Warranty Clause No 6. 

4.1 

The bank guarantee equivalent to 10 % of the total contract amount (including inland 

transportation cost, if applicable) shall be submitted at the time of signing the 

Contract. 

4.2 

The Performance Security shall be issued or counter guaranteed by one of the 

banks as mentioned in Clause no. 4 Section II: Invitation for Bids. 

The proceeds of the Performance Security shall be payable to the Nepal Telecom as 

compensation for any loss resulting from the Supplier's failure to complete its 

obligations under the Contract. 


17

Clause 

No. 

4.3 

4.4 

5 




The Nepal Telecom can terminate the Contract if the Supplier fails to fulfill the 

obligations as per the Contract. Upon termination of the contract, the Performance 

Security submitted under the Contract will be forfeited and the loss incurred by NT 

due to termination of the Contract shall be borne by the Supplier. After this, the 

Supplier shall be black listed and the notice of black listed shall be circulated to all 

departments of Nepal Telecom. The Supplier who has been black listed shall not 

be eligible to participate in any tender and Sealed quotations of NT for the period of 

Five (5) years. 

The Performance Security will be discharged by the Nepal Telecom not later than 

thirty (30) days following the date of completion of the Supplier's performance 

obligations, including the issuance of the Warranty Completion Certificate (WCC) as 

stated in Clause no. 6.1 of this section, under the Contract. 

Supply, Delivery, Installation Supervision, Testing and Commissioning 

All of the goods (Hardware & ERP System) as mentioned in the Section VI: SOR shall 

be delivered to Nepal Telecom's IT Directorate store, Kathmandu. The supply, 

delivery, installation supervision, testing and commissioning of the ERP System shall 

be done as follows: 

a) Bidder shall complete the Requirement/Gap analysis and delivery of System 

Requirement Document (SRD) within sixty five (65) days from the date of signing 

of the contract 

b) Bidder shall complete the Installation and Commissioning of the Hardware, 

OS, RDBMS, Tools & Others (including installation and installation test at 

Main & DR sites) (Part-II and Part-V (5.1 of Section VII: SOP) within one 

hundred (100) days from the date of signing the Contract. 

c) Nepal Telecom shall approve the Requirement Analysis/SRD delivered by 

the bidder within fifteen (15) days from the date of delivery of the 

Requirement Analysis/SRD by the bidder. 

d) Bidder shall complete the Delivery Installation and Commissioning of the 

ERP Software of ERP System (including customization and installation 

and commissioning at Main, DR sites and Four Accounting Centers) 

(Part-I and Part-V (5.2 of Section VII: SOP) within one hundred twenty 

(120) days from the date of approval of SRD by Nepal Telecom. 

e) The Bidder shall complete the Phase-I Implementation (Please also refer 

to Annex XV) (Part-VI of Section VII: SOP)within two hundred forty (240) 

days from the date of approval of SRD by Nepal Telecom. 

f) The Bidder shall complete the Phase-II Implementation (Please refer to 

Annex XV) (Part-VII within one (1) year from the date of issuance of work 

order for the Phase-II implementation. Bidder shall commence Phase-II 

implementation after the issuance of Work order for the Phase-II 

implementation as mentioned in the Section VIII: Technical Specification, 

Chapter 12 “Detail Technical Specification: Acceptance Testing”. 

However, Nepal Telecom, if required, may issue the Work Order before 

the issuance of the 1 st Phase Implementation Certificate if the Phase-I 

implementation is carried out successfully and satisfactorily. 





Compliant 


18



Clause 

No. 

Acceptance Testing 


5.1 Acceptance Tests : 

Acceptance testing shall be carried out as specified in Section VIII: Technical 

Specification, Chapter 12 "Detail Technical Specification: Acceptance Testing”. 

6 Warranty and Technical Support Services 

Warranty and Technical Support Services Period: 

The warranty and Technical Support Services shall remain valid for a period of 

twenty four (24) months from the date of issuance of Final Acceptance Certificate 

(FAC). 

6.1 

Nepal Telecom shall issue Warranty Completion Certificate (WCC) within thirty (30) 

Days after the satisfactorily completion of warranty and Technical Support Services 

period as mentioned in the Section VIII: Technical Specification, Chapter 13 " Detail 

Technical Specification: Warranty and Technical Support Services”. 





Compliant 

The Nepal Telecom shall promptly notify the supplier in writing of any claims arising 

under this warranty. 

6.2 

6.3 

6.4 

6.5 

6.6 

The Supplier warrants that the Systems supplied under the Contract are of the 

latest appropriate design, and that they incorporate all recent improvements in 

design and materials. The Supplier also warrants that all Products form part of the 

producers’ current product lines, have been previously released to the market, and 

all non-custom software products have been in production use for at least three 

months. 

Upon receipt of such notice, the supplier shall, with all reasonable speed, repair or 

replace the defective goods or parts thereof and return it back, without any costs to 

the Nepal Telecom within sixty (60) days of receiving such notice. 

If the Supplier, having been notified of the claim, fails to remedy the defects(s) within a 

reasonable period, Nepal Telecom shall take remedial action as may be necessary, at 

the supplier's risk and expense and without prejudice to any other rights which Nepal 

Telecom may have against the supplier under the contract. 

During the delivery and testing, if some of the items found missing, short supplied or 

damaged, the supplier shall supply/replace these items without any cost to Nepal 

Telecom, and all the costs including customs and other local taxes shall be borne by 

the supplier. 

During the warranty period, the supplier shall make good (or replace with new items if 

applicable) all the defective goods including software or parts thereof as specified by 

the Nepal Telecom, with all reasonable speed and at no additional cost to Nepal 

Telecom. 

The supplier shall provide professional staff in the field stations in Nepal or teleassistance 

as may be required during the warranty period to remedy any deficiency 

that may develop. Until the completion of the warranty period, the supplier shall at 

all times and under all conditions be entirely responsible for the satisfactory 

performance of the system. 

The cost of material, freight, insurance and any other duties and costs during the 

warranty period such as expert visit to Nepal site, cost of both way freight for repair of 

faulty component, custom duty for importation of repaired item or replacement item 


19

Clause 

No. 

etc. shall be borne by the Supplier. 








Compliant 

During the Warranty Period, the Supplier will provide at no additional cost to the 

Purchaser all Product and documentation updates and new software version 

releases within 30 days of their availability in the Purchaser’s country, and no later 

than 12 months after they are released in the country of origin of the Product. 

6.7 Warranty shall also include warranty and technical support services as specified in 

Section VIII: Technical Specifications, Chapter 13 “Detail Technical Specification: 

Warranty and Technical Support Services”. 

6.8 

Annual Maintenance Contract (AMC) 

After completion of twenty four (24) months warranty of complete ERP system 

(hardware and ERP Systems) as specified in COC: clause 6.1 to 6.7, Annual 

Maintenance Contract (AMC) for three years (3) will take effect. This shall be 

governed by a separate contract which shall be negotiated and signed at least three 

months prior to the end of warranty period. 

The bidder shall quote the price for Annual Maintenance Contract (AMC) in 

Section VII, price schedule and that will be considered for evaluation. 

The Nepal Telecom shall promptly notify the supplier in writing of any claims arising 

under this warranty. 

6.9 

6.10 

6.11 

6.12 

The Supplier warrants that the Systems supplied under the Contract are of the 

latest appropriate design, and that they incorporate all recent improvements in 

design and materials. The Supplier also warrants that all Products form part of the 

producers’ current product lines, have been previously released to the market, and 

all non-custom software products have been in production use for at least three 

months. 

Upon receipt of such notice, the supplier shall, with all reasonable speed, repair or 

replace the defective goods or parts thereof and return it back, without any costs to 

the Nepal Telecom within sixty (60) days of receiving such notice. 

If the Supplier, having been notified of the claim, fails to remedy the defects(s) within a 

reasonable period, Nepal Telecom shall take remedial action as may be necessary, at 

the supplier's risk and expense and without prejudice to any other rights which Nepal 

Telecom may have against the supplier under the contract. 

During the warranty period, the supplier shall make good (or replace with new items if 

applicable) all the defective goods including software or parts thereof as specified by 

the Nepal Telecom, with all reasonable speed and at no additional cost to Nepal 

Telecom. 

The supplier shall provide professional staff in the field stations in Nepal or teleassistance 

as may be required during the AMC period to remedy any deficiency 

that may develop. Until the completion of the AMC period, the supplier shall at all 

times and under all conditions be entirely responsible for the satisfactory 

performance of the system. 

The cost of material, freight, insurance and any other duties and costs during the AMC 

period such as expert visit to Nepal site, cost of both way freight for repair of faulty 

component, custom duty for importation of repaired item or replacement item etc. shall 

be borne by the Supplier. 


20

Clause 

No. 




During the AMC Period, the Supplier will provide at no additional cost to the 

Purchaser all Product and documentation updates and new software version 

releases within 30 days of their availability in the Purchaser’s country, and no later 

than 12 months after they are released in the country of origin of the Product. 





Compliant 

7 Payment 

Payment for Goods (Hardware and ERP Software) and Services 

100% Payment of the foreign currency component for the Goods and Services shall 

be made through Irrevocable Letter of Credit (L/C). Nepal Telecom shall open an 

irrevocable Letter of Credit (L/C) for total Contract amount (excluding the cost of 

Annual Maintenance Contract (AMC)) in favour of the supplier. The L/C for the 

amount of the Hardware and Software only will be opened first. The amount for the 

service portion will be added afterwards by amending the original L/C. 

7.1 

Nepal Telecom shall open irrevocable L/C within fifteen (15) days from the date of 

signing of the Contract, provided that error free pro-forma invoice has been received 

within Seven (7) days. Delay in submission of the error free pro-forma invoice may 

result in delay in opening of letter of credit which ultimately may delay the 

implementation of the system and shall attract liquidated damage. 

The supplier shall provide separate pro-forma invoices for the goods and services. 

The breakdown costs of the freight and insurance along with the costs of goods to be 

delivered shall be clearly mentioned in the commercial invoice. 

Payments of Goods – Part-II of Section VII: SOP (Hardware, OS, RDBMS, 

Tools and others) 

a) On Shipment: 

Fifty Percent (50%) payment of the Price of the Goods – Part-II of Section VII: SOP 

(Hardware, OS, RDBMS, Tools and other) shipped shall be paid through Irrevocable 

Letter of Credit (L/C) opened in favour of the supplier in a bank in its country upon 

submission of original shipping documents specified in Section IV, COC Clause no. 16 

"Documents". 

b) On Provisional Acceptance Certificate (PAC): 

7.2 

Twenty Five Percent (25%) of the price of the goods -Part-II of Section VII: SOP 

(Hardware, OS, RDBMS, Tools and other) shall be made through irrevocable L/C 

within thirty (30) days upon issuance of Provision Acceptance Certificate (PAC) 

for Hardware as mentioned in the Section VIII: Technical Specification, Chapter 

12 "Detail Technical Specification: Acceptance Testing ". 

c) On Final Acceptance Certificate (FAC): 

Twenty percent (20%) of the price of the Goods – Part-II of Section VII: SOP 

(Hardware, OS, RDBMS, Tools and other) shall be made through irrevocable L/C 

within thirty (30) days upon issuance of Final Acceptance Certificate (FAC) for 

Hardware after the stabilization period as mentioned in the Section VIII: Technical 

Specification, Chapter 12 "Detail Technical Specification: Acceptance Testing ". 


21

Clause 

No. 

7.3 

7.4 




Payments of Goods- Part-I of SOP (ERP System including 

Customization) 

a) On Approval of System Requirement Document (SRD) 

Five percent (5%) of the price of the Goods – Part-I of Section VII: SOP 

(ERP System including customization) on approval of System 

Requirement Document (SRD). 

b) On Shipment: 

Ten Percent (10%) payment of the Price of the Goods-Part-I of Section VII: SOP 

(ERP System including customization ) shipped shall be paid through Irrevocable 

Letter of Credit (L/C) opened in favour of the supplier in a bank in its country upon 

submission of original shipping documents specified in Section IV, COC Clause 

no. 16 "Documents". 

c) On Issuance of Provisional Acceptance Certificate (PAC) : 

Twenty Five (25%) payments of the price of the Goods-Part-II of Section VII: 

SOP (ERP System including customization) shall be made through irrevocable 

L/C within thirty (30) days from the date of issuance of Provisional Acceptance 

Certificate (PAC) as mentioned in the Section VIII: Technical Specification, 

Chapter 12 "Detail Technical Specification: Acceptance Testing ". 

Liquidated damages, short fall of goods and any other charges payable to the 

Nepal Telecom shall be deducted at this time of the payment. 

d) Payment on Issuance of Final Acceptance Certificate (FAC): 

Fifty five percent (55%) of the price of the Goods-Part-II of Section VII: SOP 

(ERP System including customization) shall be made through irrevocable L/C 

within thirty (30) days upon issuance of Final Acceptance Certificate (FAC) after 

stabilization period as mentioned in the Section VIII: Technical Specification, 

Chapter 12 "Detail Technical Specification: Acceptance Testing ". 

Payment on Warranty Completion Certificate (WCC) 

Remaining Five Percent (5%) of the price of Goods-Part-I and Part-II of Section 

VII: SOP (Hardware, OS, RDBMS, Tools & others and the ERP System 

including customization) shall be made through irrevocable L/C within thirty (30) 

days upon issuance of Warranty Completion Certificate (WCC) as mentioned in the 

Section VIII: Technical Specification, Chapter 13 " Detail Technical Specification: 

Warranty and Technical Support Service". 

Payment for Services 

(a) In-plant Test (Part-III) 

100% payment of the In-plant Test (Part-III of Section VII: SOP) shall be made through 

irrevocable L/C upon claim along with invoice and In-plant test certificate 

presented by the supplier after the successful completion of the In-plant Test. 

Nepal Telecom will certify such claims within 30 days of submission. 

(b) Training (Part-IV) 

100% payment of the training (Part-IV of Section VII: SOP) shall be made 

through irrevocable L/C upon claim along with invoice and completion certificate 

presented by the supplier after the successful completion of the training. Nepal 

Telecom will certify such claims within thirty (30) days of submission. 





Compliant 


22

Clause 

No. 




(c) Installation Testing and Commissioning of Hardware, OS, RDBMS, 

Tools & Others and Implementation at Main, DR Sites and Four 

Accounting centers (Part V) 

100% payment for the Installation, Testing and Commissioning of Hardware, OS, 

RDBMS, Tools & Others and Implementation at Master, DR sites and four 

accounting centres (Part-V) as specified in Section VII: schedule of Prices (SOP) 

shall be made through irrevocable L/C after issuance of Provisional Acceptance 

Certificate (PAC) upon claim along with invoice. Nepal Telecom will certify such 

claim within 30 days submission. 

(d) Phase-I Implementation (Part-VI) 

100% payment for the Phase-I Implementation (Part-VI) as specified in Section 

VII: Schedule of Prices (SOP) shall be made through irrevocable L/C after 

issuance of 1 st Phase Completion Certificate upon claim along with invoice. 

Nepal Telecom will certify such claim within 30 days submission 

(e) Phase-II Implementation(Part-VII) 

100% lot wise payment for the Phase-II Implementation (Part-VII) as specified in 

Section VI: Schedule of requirement shall be made through irrevocable L/C after 

issuance of lot wise Acceptance Certificate (AC) upon claim along with invoice. 

Nepal Telecom will certify such claim within 30 days submission 

(f) Warranty & Technical Support Services (Part-VIII) 

Payment for warranty & Technical Support Services for twenty four (24) 

months (Part-VIII) shall be paid on quarterly basis upon submission of claims 

and invoices to Nepal Telecom on certification by Nepal Telecom’s Project 

Manager of satisfactory discharge of services as per as per Section VIII: 

Technical Specifications, Chapter 14 "Detail Technical Specification: Annual 

Maintenance Contract" and Section IV: COC, Clause No. 6. 

(g) Annual Maintenance Contract (AMC) Part-IX 

Payment for three (3) years Annual Maintenance Contract (AMC) Part-IX for 

hardware and ERP System shall be made on quarterly basis upon submission of 

claims and invoices to Nepal Telecom on certification by Nepal Telecom’s 

Project Manager of satisfactory discharge of services as per Section VIII: 

Technical Specifications, Chapter 14 "Detail Technical Specification:Annual 

Maintenance Contract" and Section IV:COC, Clause No. 6. 





Compliant 

This shall be governed by a separate contract which shall be made 3 months 

prior to the end of Warranty period. Separate irrevocable Letter of Credit (L/C) 

shall be opened for the Annual Maintenance Contract (AMC). 

7.5 Payment for Local Currency Portion ( if Applicable ) 

Payment for Local Currency Portion ( if Applicable ) 

a) Payment of Inland Transportation: 

100% Payment for local currency incurred in inland transportation of the goods 

in Nepal shall be made to the Supplier within Thirty (30) days upon a claim 

after the satisfactory receipt of all the goods at final destination. 


23

Clause 

No. 

7.6 




b) Payment of the goods and services with country of origin Nepal: 

Payment for the Goods with Country of Origin Nepal shall be made as per the 

Clause No. 7. 1 and 7.2 in local currency. 

L/C Amendment and Effective Date 

In case the L/C has to be amended due to reasons attributable to the Supplier, the 

effective date of L/C will be the date on which L/C was originally established. 

If the L/C has to be amended due to reasons attributable to NT, the effective date of 

L/C will be the date on which L/C is amended. 

All the charges for L/C payable outside Nepal shall be borne by the supplier. 

In case of L/C amendment is requested by the supplier for the reasons attributable to 

the supplier, all bank charges for such amendment (reconfirmation charge, negotiation 

charge etc.) inside and outside Nepal shall be borne by the supplier. 





Compliant 

Contract Amendments 

8 No variation in or modification of the terms of the Contract shall be made except by 

written amendment signed by the both parties. 

Assignment 

9 The Supplier shall not assign, in whole or in part, its obligations to another party to 

perform under this Contract, except with the Nepal Telecom's prior written consent. 

Applicable Law 

10 The Contract shall be governed and interpreted in accordance with prevailing laws 

of Nepal Government and by-law of Nepal Telecom. 

11 Taxes and Duties 

The Supplier shall be entirely responsible for all taxes/duties stamp duties, license 

fees and other such levies imposed outside Nepal. The Taxes/ duties such as Custom 

duties, VAT, Local development tax, security tax etc. applicable at the time of 

importation of goods in Nepal, for the value not exceeding the total contract price will 

11.1 

be borne by the Nepal Telecom. However, it will be the Supplier’s responsibility to pay 

Taxes/ duties as mentioned above for the amount increased beyond the total contract 

price. 

The bidder shall be responsible to pay withholding Tax (TDS-Tax Deducted at 

11.2 

Source) as per the income tax law of government of Nepal applicable at the time of 

payment. 

Taxes Deduction and Other Deduction on Payment 

All the payment under this contract shall be made only after deduction of 

withholding tax amount (TDS- Tax deducted at Source) in accordance with the 

11.3 clause No. – 11.2 of section IV : Conditions of Contract (COC). 

Liquidated damages, short fall of equipment and any other charges payable to 

Nepal Telecom shall be deducted at the time of the payment. 

12 Liquidated Damages 

12.1 

If the Supplier fails to complete the delivery, installation Supervision, testing and 


24

Clause 

No. 




commissioning and make ready for putting into commercial service within the time 

period specified in the Table-1 given below, Nepal Telecom shall, without prejudice to 

its other remedies under the Contract, deduct from the Total Contract Price payable to 

the Contractor, as liquidated damages, a sum equivalent to 0.5% percent of the 

Contract price of the goods and services, which could not be delivered/commissioned 

(as per the table-1) for each week of delay until actual delivery or performance up to a 

maximum deduction of 10% of the Total Contract Price . Once the maximum is 

reached, the Nepal Telecom may consider termination of the Contract. 





Compliant 

Item 

Installation, testing and 

Commissioning of 

Hardware, OS, RDBMS, 

Tools & others (including 

installation and 

installation test at Main & 

DR sites) (Part-II and 

Part-V ( 5.1)of Section 

VII:SOP) 

ERP System Including 

Implementation at Main 

and DR sites and 4 

Accounting Centres (Part- 

I and Part-V ( 5.2) of 

Section VII: SOP) 

Phase-I Implementation 

(Part-VI of Section VII: 

SOP) 

Phase-II Implementation 

(Part VII of Section VII: 

SOP) 

Table-1 

Delivery, Installation, 

Commission Duration 

(Please refer to Clause 

No. 5 of Section 

IV:COC) 

within one hundred 

(100) days from the 

date of signing the 

Contract 

Within two hundred 

(200) days from the 

date of signing of the 

contract. Any delays 

caused by Nepal 

Telecom in providing 

the approval for SRD 

shall be deducted. 

Within two hundred 

forty (240) days from 

the date of approval of 

SRD by Nepal Telecom 

Within one (1) year 

from the date of 

issuance of Work Order 

for 

Phase-II 

Implementation 

Deduction to be 

made as liquidated 

damages for each 

week of delay 

0.05% of the Contract 

Price of the Hardware, OS, 

RDBMS, Tools & Others 

and ERP System (Part-I 

and Part-II & Part-V(5.1) 

of Section VII: SOP) 


Price of the ERP System 

and implementation at 

Main and DR sites and 4 

Accounting Centres (Part-I 

and Part-V of Section VII: 

SOP) 


Price of the ERP System 

and 

Phase-I 

implementation (Part-I 

and Part-VI of SOP) 


Price of the Phase-II 

implementation (Part-VII 

of Section VII:SOP) 

13 Force Majeure 

The Supplier shall not be liable for forfeiture of its Performance Security, liquidated 

damages or termination for default, if and to the extent that, its delay in performance or 

13.1 

other failure to perform its obligations under the Contract is the result of an event of 

Force Majeure 

For purposes of this Clause, "Force Majeure" means an event beyond the control 

13.2 

of the Supplier or Purchaser and not involving the Supplier's or Purchaser’s fault or 


25



Clause 

No. 

13.3 


negligence. Such events may include, but are not restricted to, acts to the Nepal 

Telecom either in its sovereign or contractual capacity, wars or revolutions, fires, 

floods, epidemics, quarantine restrictions and freight embargoes. 

If a Force Majeure situation arises, the Supplier shall promptly notify the Nepal 

Telecom in writing of such condition and the cause thereof. Unless otherwise directed 

by the Nepal Telecom in writing, the Supplier shall continue to perform its obligations 

under the Contract as far as is reasonably practical, and shall seek all reasonable 

alternative means for performance not prevented by the Force Majeure event. 

14 Insurance 

14.1 

14.2 

14.3 

The goods supplied under the Contract shall be fully insured in a freely convertible 

currency against any loss or damage incidental to manufacture or acquisition, 

transportation, storage and delivery in the manner specified in the clause no. 14.3 of 

this section. 

The insurance policy shall be issued or counter issued by one of the insurance 

company incorporated in Nepal. Any claim under insurance policy shall be lodged 

with such insurance company in Nepal and claim shall be released/paid to the 

Nepal Telecom. 

The insurance shall be in an amount equal to 110% of the CIP value of the goods 

from ‘’warehouse to warehouse’’ on ‘’all risks’’ basis including risk of Theft, 

Pilferage, No delivery (TPND), Strikes, Riots, Civil Commotion (SRCC) and War 

Clauses. All the items shall be fully Insured by the Supplier up to the final 

destination (i.e. goods Installation sites). 





Compliant 

14.4 The insurance policy shall remain valid till sixty (60) days after the delivery of all 

goods at Nepal Telecom Respective Stores. 

Any item/part damage / lost shall be replaced by the Supplier free of charge at first 

14.5 and the insurance claim shall be made by the Suppliers to recover the cost of 

damaged/ lost goods and the Nepal Telecom will extend all the necessary cooperation 

in this regard. 

15 Patent Rights and Software Licenses 

Patent Rights 

15.1 

15.2 

The Supplier shall indemnify the Nepal Telecom against all third – party claims of 

infringement of patent, trademark or industrial design rights arising from use of the 

goods (equipment and software) or any part thereof in Nepal. 

Software License 

The supplier shall provide appropriate software licenses for all the software products 

including third party software supplied under the contract as per the sample form no. 

5. The licenses shall be issued in the name of Nepal Telecom by the manufacturer of 

the Products. The license document shall be delivered along with the software 

products and documentation. 

The bidder shall clearly mention all the applicable software license fees that Nepal 

Telecom has to pay. This will be considered during evaluation. 

Nepal Telecom reserves right to reallocate equipment/software from one place to 

another within Nepal. No License fee shall be applicable now or in future if Nepal 

Telecom relocates the equipment/software within Nepal. 


26

Clause 

No. 

16 Documents 








Compliant 

Upon shipment, the Supplier shall notify the Nepal Telecom and the Insurance 

Company by fax and email the full details of the shipment including Contract number, 

Description of goods, Quantity, the airway bill / bill of lading, or truck receipt number 

(as applicable) and date, Port of loading, Date of shipment, Port of discharge, L/C 

number etc. The Supplier shall send by courier service a copy of following documents 

to the Nepal Telecom with a copy to the Insurance company: 

16.1 

16.2 

i) Five (5) copies of the Supplier's invoice showing goods description, quantity, 

unit price, and total amount and L/C number. 

ii) Original and Four (4) copies of the negotiable, clean airway bill and four (4) 

copies of non-negotiable airway bill. 

iii) Five (5) copies of packing list identifying contents of each the goods 

iv) Insurance certificate; 

v) Manufacture's /Supplier's guarantee certificate; 

vi) Certificate of origin issued by Chamber of Commerce 

vii) Manufacturer’s factory test report 

viii) Inspection certificate issued by the Material Management Department, the 

Nepal Telecom as per the Inspection Report submitted by Nepal Telecom 

Inspector 

ix) Original software license issued by manufacturers as per the sample form no. 

5 provided by NT for application software product. 

A set of the above mentioned non-negotiable documents shall be received by the 

Nepal Telecom within Seven (7) days from the date of despatch of goods and, if 

not received, the Supplier will be responsible for any consequential expenses. 

Additional Orders 

Nepal Telecom shall have the right to order additional goods and services up to 

17 

20% of the Total Contract Price during the contract validity period i.e. until expiry of 

warranty. The unit prices for additional orders shall not exceed the contract unit 

prices. 

18 Termination of Contract 

Terminations for Default 

18.1 

The Nepal Telecom may, without prejudice to any other remedy for the breach of 

contract, by written notice of default sent to Supplier, terminate this contract in whole 

or in part: 

(a) If the supplier fails to deliver any or all of the Goods within the time period (s) 

specified in the Contract, or any extension thereof granted by the purchaser. 

(b) If the Supplier fails to perform any other contractual obligation (s) under the 

contract; or 

(c) If the supplier, in either of the above circumstances, does not cure its failure 

within a period of thirty (30) days (or such longer period as the Purchase may 

authorize in writing) after the receipt of the default notice from the purchase. 


27

Clause 

No. 

18.2 




Terminations for Convenience 

The Nepal Telecom may terminate the Contract, in whole or in part, at any time for 

its convenience. The notice of termination shall specify that termination is for the 

Nepal Telecom’s convenience, the extent to which performance of work under the 

contract is terminated, and the date upon which such termination becomes 

effective. 





Compliant 

19 Arbitration 

19.1 

19.2 

19.3 

20 

If any dispute arises between the contracting parties in connection with or arising out 

of contract or the execution of the contract, whether the execution of works after the 

completion of works and whether before or after the repudiation or termination of the 

contract including any disagreement by either party with any action, inaction 

certification, the matter shall be settled by arbitration under United Nation Commission 

on International and Trade Law (UNCITRAL) Arbitration Rules. 

Arbitration takes place in Kathmandu, Nepal and shall be conducted in English 

Language. 

The Arbitral Tribunal shall consists of three arbitrators appointed as follows 

(a) Each contracting parties shall appoint only one arbitrator from their sides 

(b) The third arbitrator shall be appointed by agreement of the above mentioned two 

arbitrators. 

Training 

The supplier shall provide training to Nepal Telecom’s personals as per the clauses 

mentioned in, Section VIII: Technical Specifications, Chapter 11 "Detail Technical 

Specification: Training Requirement". 

21 

Bidder shall quote the cost of Training as per the Section VIII: Technical 

Specifications, Chapter 11 " Detail Technical Specification: Training 

Requirement". 

Inspection and Test 

In-plant test shall be done prior to shipment by the Inspector designated by Nepal 

Telecom. Supplier shall send a copy of the In-plant test certificate issued by Nepal 

Telecom inspector to the Insurance company as mentioned in Clause 16 of Section 

IV, COC. 

Bidder shall quote the cost of in-plant test as per Section VIII:Technical 

Specifications, Chapter 12 " Detail Technical Specification: Acceptance 

Testing". 

22 Price of Spare Parts (Price Escalation Formula) 

The prices of spare shall remain fixed for two (2) years after the expiry of warranty 

and Technical Support Services period covered by the contract. After that period, 

the price escalation formula shall be applied. The bidder shall provide price 

escalation formula and the price escalation formula shall be such that the annual 

price increment shall not exceed 2% (two percent). 

End of Section IV: Conditions of Contract 


28

epal Telecom 

epal Doorsanchar Company Limited 

SECTION V: SAMPLE FORMS 

Bid Form 

Sample Form No.1 

Date: -------- 

Tender No.: NDCL/14/065-66, for Supply, Delivery, Installation Supervision, Testing & Commissioning of ERP System. 

To: 

Nepal Doorsanchar Company Limited, 

Material Management Department, 

Central Office, Doorsanchar Bhawan, 

Bhadrakali Plaza, Kathmandu, NEPAL. 

Gentlemen: 

Having examined the Bidding Documents including Addenda Nos.: ----------- (Insert Numbers), the receipt of which is hereby duly 

acknowledged, we, the undersigned, offer to Supply, Delivery, Installation Supervision, Testing and Commissioning of ERP System 

in conformity with the said Bidding Documents for the sum of ----------------------------------------------(Specify Bid Price in figure and 

words) or such other sums as may be ascertained in accordance with the Schedule of Prices attached herewith and made part of 

this bid. 

We undertake, if our bid is accepted, to complete Supply, Delivery, Installation Supervision, Testing and Commissioning of ERP System 

within three hundred and twenty (320) days from the date of signing of the contract and Phase-II Implementation within one (1) year 

from the date of issuance of work order for Phase-II implementation. 

If our bid is accepted we will obtain the guarantee of a bank in a sum equivalent to Ten (10) % of the Total Contract Sum for the due 

Performance of the Contract. 

Commission and gratuities, if any, paid to or to be paid by us to agents-relating to this Bid, and to contract execution if we are awarded the 

contract, are listed below: 

Name and Address of Local Agent Amount & Currency Purpose of Commission Gratuities 

____________________ _________________ ___________________________ 

(if none, state “none”) 

Our bid is valid up to 23 rd June 2009 and it shall remain binding upon us and may be accepted at any time before the expiration of this 

validity. 

Until a formal contract is prepared and executed, this bid, together with your written acceptance thereof in your notification of award shall 

constitute a binding contract between us. 

We understand that you are not bound to accept the lowest or any bid you may receive. 

Dated: ---------- (Specify date) 

Signature : ______________ Signature : 

Name : ______________ Name : ______________ 

Designation : ______________ 

Designation : ______________ 

(Witness) 

Duly Authorised to sign 

Address : ______________ bid for and on behalf of 

Official Seal : ______________ 

(In the Capacity of), 

Official Seal : ______________ 

Note: This Bid Form shall be duly filled, signed with date and stamped with official seal. Bid Form not duly filled and without 

signatue, date and official stamp shall be rejected and will not be considered for evaluation. 


29



Sample Form No.2 

Bid Security Form 

Whereas -------------------- (Name of the Bidder) [ hereinafter called "the Bidder"] has submitted its Bid dated ------- (Date of 

Submission of Bid) to Supply, Delivery, Installation Supervision, Testing and Commissioning of ERP System ( hereinafter 

Called “Bid") 

KNOW ALL PEOPLE by these presents that WE, ---------------- (Name of Bank) of Nepal, having our registered office at ----------------- 

(Address of Bank) [hereinafter called "the Bank"], are bound unto Nepal Doorsanchar Company Limited, [hereinafter called "the 

Purchaser"] in the sum of ------------ (Currency & amount) for which payment well and truly to be made to the said Purchaser, the 

Bank binds it self, its successors, and assigns by these presents. Sealed with the Common Seal of the said Bank this----------- 

(Specify date) 

THE CONDITIONS of this obligation are: 

1. If the Bidder withdraws its Bid during the period of Bid validity specified by the Bidder on the Bid Form; 

OR 

2. If the Bidder, having been notified of the acceptance of its Bid by the Purchaser during the period of Bid validity: 

(a) Fails or refuses to sign the contract agreement within stipulated time, or 

(b) Fails or refuses to furnish the Performance Security, in accordance with the Clause no. 4 of Section IV, Conditions of Contract, 

We undertake to pay to the Purchaser up to the above amount upon receipt of its first written demand, without the Purchaser having 

to substantiate its demand, provided that in its demand the Purchaser will note that the amount claimed by it is due to its owing to the 

occurrence of one or both of the two conditions, specifying the occurred condition or conditions. 

This guarantee will remain in force up to 23 rd July 2009 and any demand in respect there of shall reach the Bank not later 

than the above date. 

_________________________________ 

[Signature and Official Seal of the Bank] 

____________________________________________________________________________________________ 

The list of banks located in Nepal as per Clause no. 4 of Section II: Invitation for Bids (IFB) has been short listed & 

acceptable to Nepal Telecom for the purpose of Bid security. 


30



Sample Form No. 3 

To, 


Material Management Department 

Central Office, Doorsanchar Bhawan 

Bhadrakali Plaza 

Kathmandu, Nepal 

Manufacturer's/Producer’s Authorisation Letter 

WHEREAS -------------- (Specify Name of the Manufacturer or Producer) who are established and reputable manufacturers 

or producer’s of --------------- (Specify Name and/or description of Goods) having factories or producing house at ---------------- 

---- ------------ (Specify Address of Factory or Producing House) 

Do hereby authorise --------------------- (Specify Name and Address of Bidder/Agent) to submit a Bid, and subsequently 

negotiate and sign the Contract with you against Invitation for Bids (IFB) No. NDCL/14/065-66 for to Supply, Delivery, 

Installation Supervision, Testing and Commissioning of ERP System the above Goods manufactured by us 

We hereby extend our full guarantee and warranty for the Goods offered for supply by the above firm against this Invitation 

for Bids. 

______________________________________ 

[Signature for and on behalf of Manufacturer or Producer] 

Name : --------------------------- 

Designation : -------------------------- 

Date : --------------------------- 

Note : 

The Manufacturer’s or Producer’s Authorization Letter shall be on the letterhead of the 

manufacturing or producer concern and shall be signed by a person competent and having the 

power of attorney to bind the manufacturer or producer. 

It is mandatory to submit Manufacturer’s or Producer’s Authorization Letter for Offered Products as per 

Clause no. 16 of Section III: Instruction to Bidders. 


31



Sample Form No. 4 

Performance Security Form 

To: 




Bhadrakali Plaza, 

Kathmandu, Nepal. 

WHEREAS ------------------- (Name of Supplier) [hereinafter called "the Supplier"] has undertaken, in pursuance of Contract No. 

NDCL/14/065-66 to Supply, Delivery, Installation Supervision, Testing and Commissioning of ERP System (hereinafter called 

"the Contract"] 

AND WHEREAS it has been stipulated by you in the said Contract that the Supplier shall furnish you with a Bank Guarantee by a 

reputable bank for the sum specified therein as security for compliance with the Supplier's performance obligations in accordance with 

the Contract 

AND WHEREAS we have agreed to give the Supplier a Guarantee: 

THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of the Supplier, up to a total of --------------- 

(Specify Currency and amount of Guarantee in figure and words), and we undertake to pay you, upon 

your first written demand declaring the Supplier to be in default under the Contract and without cavil or argument, any sum or sums 

within the limits of ----------------(Specify Currency and amount of Guarantee) as aforesaid, without your needing to prove or to show 

grounds or reasons for your demand for the sum specified therein. 

This guarantee is valid until the ---------- (Specify date). 

Signature and Official Seal of the Guarantors 

Name :------------------------ 

Designation : --------------------------- 

Date : -------------------- 

Address :--------------- 

The list of banks located in Nepal as per Clause no. 4 of Section II: Invitation for Bids (IFB) has been short listed & 

acceptable to Nepal Telecom for the purpose of Performance Security. 


32

Sample Form o. 5 



License Document Form 

To, 




Bhadrakali Plaza, Kathmandu, Nepal 

License for {Write name of the software product} 

1. In consideration of the Contract No. NDCL/14/065-66, {Name and address of the software product 

manufacturer} grants to Nepal Telecom a fully paid-up perpetual irrevocable non-exclusive and nontransferable 

Corporate license on {name of the software product} with effect from the delivery date throughout 

the territory of Nepal to access and use the Products, including all inventions, designs, customizations and 

marks embodied therein, supplied under the Contract No. NDCL/14/065-66 (hereinafter called the Licensed 

Products), which software may be: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

used or copied for use on or with the Platforms for which they were acquired; 

reproduced for safekeeping or backup purposes; 

used with the External Programs by Nepal Telecom 

disclosed to and reproduced for use by the support service supplier or their subcontractors 

used or copied for use on or transferred to replacement computers 

subject to audit by the supplier to verify compliance with the license agreement 

copied for use in quality assurance of the licensed Programs 

2. Nepal Telecom shall use the Licensed Products in its own business only as Telecommunication Service 

Provider in Nepal. 

3. {Name of the software product manufacturer} warrants that: 

a) It has full power and authority to grant the corporate license to use the Programs and the information 

contained in the Manuals and associated documentation; 

b) The Programs will be fit for their purpose and will operate in accordance with the specifications and 

the manuals and related documents agreed between (a) Nepal Telecom and (b) {Name of the 

software product manufacturer} and that the Program will be free from Material Defects; 

c) The Program will operate on the Platforms 

d) {Name of the software product manufacturer} will provide correction of defects during entire 

operational life time of the offered equipment under the arrangements of NDCL/14/065-66. 

4. {Name of the software product manufacturer} warrants that Nepal Telecom’s use of the Licensed Products will 

not constitute an infringement of a patent, design right, copyright or any other proprietary rights of any person. 

{Name of the software product manufacturer} indemnifies Nepal Telecom and will save and hold Nepal 

Telecom harmless from and against all loss, damage, costs and expenses (including legal expenses) and 

liabilities of every kind whatsoever arising out of or in connection with any such claims, suit or proceedings. 

5. This License shall be construed in accordance with and governed by the law of Nepal. Each party irrevocably 

agrees to submit to the exclusive jurisdiction of the Courts of Nepal is respect of any dispute, suit, action or 

proceedings which may arise out of or in connection with this License. 

Signed by_____________________ 

For and on behalf of {Write name of the software product manufacturer} 

Name: 

Title: 

Stamp: 


33

Nepal Telecom

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