Tender 26 (2017/2018) New Terminal (T4)
Pre-tender meeting convened for the Tender No. (26-2017/2018) on operation, management and maintenance, training and Developments of the support Building (T4) on Tuesday, dated 20/2/2018 at 2 pm at the DGCA Planning & Control Department – Meeting Room attended by the invited companies who have purchased the Tender Documents (4 companies).
Site visit were also convened to the Support Building (T4) prior to the pre-tender meeting explaining the latest construction progress of the same building (T4).
The pre-tender meeting was concluded confirming the following points:
1. The pre-tender meeting points are an integral part of the tender documents.
2. Companies to submit all their questions during the pre-tender meeting and any questions raised after the pre-tender meeting will not be counted.
3. All Companies who have purchased the Tender Document to register at the Central Tendering Committee prior submitted their bid. Their register card to be submitted as part of their bid.
4. The closing date for the bids Submittal is Wednesday 28/2/2018 before 12 noon.
5. All bids will be opened on Thursday, 1/3/2018, 10AM in the presence of bidders or their formal representative(s).
The questions below are raised by the invited Companies and the answers.
1) One of the renderers requested a copy of the presentation.
A: DGCA will provide a copy of the presentation to all the Tenderers as it is part of the Pre-Tender meeting.
2) In relation to Kuwait Airways, at the initial stage, will Kuwait airways be the only airline operating from T4? What about Ground Handling?
A: The decision at present is for Kuwa it Airways, the national carrier, because of its high growth and capacity in relation to the pax numbers.
Kuwait Airways has its own Ground Handli ng. However, DGCA will be looking at the performance, efficiency and standard of services which applies to Kuwait Airways as well as the Airport Operator.
3) Clarify the issue of Spare Parts, in particular the critical spare parts that'll affect the operation of T4.
A: Cengiz is committed to provide a list of spare parts for the period of 5 years in regards to the successful 24/7-operation of the airport.
4) In regards to existing concessionaires, contracts and the documents in relation to those contracts, in terms of trying to assess the revenue, what type of existing contracts will transfer over? In terms of agreements in place, is the operator expected to enter into negotiations, will the operator have some exposure?
A: In this instance, the operator has a free hand, the operator can select, negotiate, get the best deal on behalf of the government for any sub-contract. Any contract will be signed only after the final approval of DGCA. Benefits of the contract towards revenue and DGCA will have to be considered.
5) What is the obligation of the Operator to cover the 3rd parties' failure of payment, considering the financial mechanism of the project to collect OPEX I profit or Operator's fee from DGCA?
If the operator doesn't have any control on Kuwait Airways or 3rd parties and if for an unforeseen reason the 3rd party cannot make the payment, (considering that the operator will receive only a margin of the OPEX), what if the operator will not be able to cover such kind of financial risk. This may be an issue for decision-makingbefore the timecomes to submit an offer, thatis to see the return and associated risks.
Kindly reconsider the specific clause: the operator shall be removed for such obligation.
A: There is a process and structure to cover many cases such dispute settlements, overseeing the whole T4 operation, including a structure for steering committee. For T4, we have one airline - Kuwait Airways, which is the national carrier and Yd parties. DGCA approve contracts to see that it matches the regulations of Kuwait. Contracts with 3rd parties will be in coordination with DGCA to ensure it is fair and logical for every concerned party.
The Operator will not be liable for unforeseen measures beyond the operators capabilit y. DGCA's goal is for all parties to work together as one. 3rd party risks will be justified fairly. The process, mechanism and structure is set in place to treat risks, ident ify problems and problem-solve issues while fairly considering all entities
This should safeguard the process in decision making and final outcome of the assessment.
6) What is the financial model mechanism of how the project model will work? Is DGCA expecting the operator to propose a5-year plan and submit a pricefor the 5-year period in total? Will the 20% of the lump-sum amount be transferred to the winning party I operator in the initial year? Will it be in the beginning of the year or via quarterly payments?
A: The process: the operator willlook at the expenditures and revenues and put a price for each driver. There will be studies and considered as part of the operator's offer, which will affect OPEX.
For payments, to help the operator have enough funds to start operating from day 1, the 20% of the total amount will be paid as soon as the operator signs the contract. After this, a portion from the remaining 5-year's amount will be paid quarterly in equal parts.
7) Considering ongoing works on the apron side adjacent to T4, also there are certain Variation Orders in place and about to be, ompleted; these construction works I changes mayresult indelayof timeline period being completed, therefore will any shift in the timeline of the 5-year period may result in the delay of the project at hand. Is it possible to include in the contracts to provide certain coverage for reasons that will negatively affect the operator, which is also not controlled by the operator?
A: There is a clear summary in the part of responsibilities for the operator, where it is highlighted that the operator will not be held liable for anything beyond the capability of the operator. Due to the support, hard work and active involvement of all Kuwaiti Ministries and DGCA entities, we hope that variation orders will be on time, however, for any delay in this regard, beyond the control of the operator or DGCA, it is logical that the operator will not be held liable or be a part of negative assessment. This will be clear in the agreement.
8) In regards to airside operations, will it be possible to have a grid map or visual reference of the responsibility area of the operator for T4?
A: This issue has been corrected. The operator is responsible for the Terminal, Apron,
Car Park and Landside outside the Terminal.
9) Please give a clear announcement regarding DGCA's expectations regarding the DRAT Program.
A: ORAT is the responsibility of the authority; DGCA as a part of the ORAT task, has restructured the process of ORAT by creating a new structure and Steering Committee for ORAT, headed by H.E. the President of Civil Aviation. This is to ensure that sub-committees will do their work. Yes, there is a consultant involved in ORAT as well all the Stakeholders. There are six (6) working groups in total, established to fully operate in the ORAT process and TOR is defined in this regard. All this is to help the operator ensure the operator moves quickly as it plays an important role in ORAT and also ensure that all parties are available in June.
All answers are in line with the TOR with reference to ORAT in the tender document. The purpose of the new structure and process of ORAT is to achieve the satisfactory results by ensuring the opening of T4 at the specified time. All Airport Operators are requested to refer to the specific conditions within the tender document including the TOR, for clarifications concerning DRAT.
Furthermore, to ensure the successful results of DRAT, DGCA made sure all entities are being represented (such as Ministry of Interior, Customs, Kuwait Airways, KAFCO (fueling) and all other stakeholders within the airport), and also to ensure that all entities take-up their responsibilities.
10) It is mentioned in the presentation that Cengiz will support operational maintenance, please explain.
Will Cengiz provide all the spare parts? Unlimited spare parts? Is there a list of spare parts that Cengiz?
A: Spare parts is for the equipment for 5 years, the operator will have to oversee and manage this part in terms of scheduling and book-keeping. Cengiz is responsible for operational maintenance as per the cont ract. It is recommended that the operators include general maintenance in the OPEX.
There is a list of spare parts and the operator will be provided with a list of all the equipment, spare parts, because the operator will have to manage the terminal. The store for these parts will be under the ownership of DGCA, managed by the operator. It will be the responsibility of Cengiz to ensure that warranties of all equipment will be valid for a period of 5 years.
11) Can we request an extension for the submittal of the proposal? This is because of the procedures to get approval for such a tender.
A: DGCA is committed to the government and cannot postpone the date for submission of the proposal.
12) For the contract document to be drafted in English and Arabic, which language is the prevailing language?
A: By law, documents should be in English and Arabic, and translation should be identical. However, Arabic is the prevailing language. The bids can be submitted in English.
13) The documents asks the operator to provide services such as facilitation, what is DGCA's understanding of facilitation in general followed by provision of flight operation assistance and crew support systems?
A: This issue has been clarified and answer will be provided.
14) The task of airline slot allocation, please give more detail.
A: The coordination in this regard is between the airport operator and the airline and it is part of the contract process for slot allocation and distribution of aircrafts. Overall slot allocation of KIA is by DGCA through the Air Transport Department.
15) How to bring in sub-contractors withthe approval of DGCA, could it be acceptable for example for Munich to pair up with Cengiz. Can the percentage with partners be adjusted, DGCA says 60%-40%,
A: It is up to the airport operator to propose it, approval or rejection will be given by DGCA. What DGCA is looking for is the achievement of the quality of service. Quality of Service and fulfilling KPl's is the aim of DGCA.
Concerning the 60%-40% percentage of partnership, if the airport operator wants to partner with another operator then this motion will not be stopped. However, the bidder operator that is in a signed contract with DGCA will have to take the majority share of 60% in decision-making and the signatory airport operator will be held responsible. This 60%-40% is applicable for joining hands with other airport operators only and does not apply to 3rd parties or sub-contractors.
16) Please reconsider the process of registration.
A: This issue will be studied, and DGCA will revert in this regard. The process of registration, information required for registration, forms will be forwarded to the airport operators. Any solution to this issue will be notified immediately.
17) The mandatory labor percentage of Kuwaiti nationals. Please confirm if the percentage is 10%.
A: By law, we need to achieve 10%, but the hope is to have as many as possible, it is up to the operator. The aim to create manpower in the aviation industry for Kuwait and to see more Kuwaitis involved, and are in positions to manage the future of Kuwait International Airport.
18) The operator has to provide training for Kuwait nationals, however are manufactures of various systems required to provide their own training to staff and provide manuals to support stable operation.
A: There are management, operational management and technical trainings (for equipment, facilities and systems} available for staff. All contracts signed by Cengiz has elements of training built into t e contract, the manufactures will help to provide training through the cont racts.
19) Who is responsible for the provision or purchase of trolleys? Is the operator responsible to provide at its own cost or will it be provided?
A: Cengiz will provide trolleys only during the initial period, and not labour or operation in this regard.
Questions and Answers for The Tender 26 (2017-2018) of Passenger Terminal T4: