annex a dotc mrt-3 system maintenance ......annex a dotc mrt-3 system maintenance service provider...

ANNEX A

DOTC MRT-3 SYSTEM MAINTENANCE SERVICE PROVIDER

General Bid Bulletin No. 09-2014

Page 1 of 34

Item

No.

Query

(lifted from the written queries submitted by prospective

bidders; names of bidders have been omitted)

Response

1

[We] would like to request your good office for permission to

conduct a depot visit of our technical team for further evaluation

and reference relevant to the preparation and finalization of

necessary bidding documents.

Bidders who purchased the Bidding Documents are allowed to

conduct site inspection upon their written request. (Please see GBB

Nos. 02-2014 and 03-2014 for the Site Visit Guidelines)

2 How is LD related to the penalty provisions for not meeting KPI

targets? Liquidated Damages is separate from the penalty provisions.

3

May we be clarified with what is referred to by the last two words

"defective equipment". Are these the equipment which are to be

subject of the maintenance works?

For example, if the contractor is not able to repair the wheel

truing machine due to whatever reason, will the contractor be

held liable to replace the truing machine or pay DOTC an amount

equivalent to the purchase price of a new truing machine?

Yes, defective equipment upon assumption of the new maintenance

provider should be repaired. For wheel truing machine,

replacement may only be an option, however, the Maintenance

Provider should ensure that the wheel truing maintenance activity

is done in accordance with the maintenance specifications.

4

In the definition of terms, it is stated that “Special Repairs”

means any repair of the System required as a result of any

damage thereto caused by any of the following:

(a) Failure of Client or any of their respective affiliates,

contractors, subcontractors or representatives, to operate the

System in accordance with the operating and maintenance

The new maintenance contract is independent of the BLT

Agreement. The peak periods are 6:30 AM - 9:30 AM and 4:30 PM

- 7:30 PM.

ANNEX A



Page 2 of 34

Item

No.

Query



Response

manuals and established operating rules;

(c) Failure of Client, or any of its respective affiliates,

contractors, subcontractors or representatives to make the System

or any portion thereof, available to Provider for scheduled

maintenance in accordance with the requirements of the

approved Manuals and

the Operating Assumptions (refer to Annex C);

In view of the foregoing, we opine that three (3) hours peak

period in the morning and in the evening may NOT in accordance

with the operating and maintenance manuals and established

operating rules set forth in the BLT Agreement. Longer peak

period does not only subject the system to being overused, it also

affects the performance of scheduled preventive maintenance on

a daily basis in a certain number of LRVs which may be in

violation of the requirements approved Manuals and Operating

Assumptions.

ANNEX A



Page 3 of 34

Item

No.

Query



Response

5

In that premise, and assuming that payments for Special Repair

work is over and above the base maintenance fee, is our

understanding correct that the winning proponent should not be

penalized for the breakdown of affected assets/equipment (e.g.

tracks, LRV, etc.) based on the aforementioned principle?

Page 138 of the Bidding Documents, shall now read as follows:

“Reduction, removal or sidetracking of trains (Degraded Service)

due to failure of system/s other than the Rolling Stock. This shall

include all systems, subsystems and components of the Traction

Power Supply, OCS, Tracks (excluding the tracks involve for

replacement as rehabilitation project), Signaling (except for MAN

900 defects) and Permanent Ways

The winning Maintenance Provider should maintain sixty nine (69)

cars only since four (4) LRVs are unserviceable.

Upon rehabilitation of these four (4) LRVs the Maintenance

Provider shall maintain all seventy three (73) LRVs.”

Page 137 of the Bidding Documents:

“60 cars / LRVs or 20 trains per Peak Hour.”

The third column for the Annexes in Pages 225 to 234 shall read as

follows:

“TOTAL MANDATORY QUANTITY REQUIREMENTS FOR

SPARE PARTS FOR 3-YEAR CONTRACT SHOULD ONLY

COMMENCE THREE (3) MONTHS AFTER THE ISSUANCE

OF NOTICE TO PROCEED”

ANNEX A



Page 4 of 34

Item

No.

Query



Response

6

"The 'inventory and status assessment' document provided by the

outgoing Contractor can be used as the baseline condition of

system asset for information of the incoming Contractor. The

inventory may be validated by an independent third party auditor

in behalf of the Client." Please confirm that during the validation

of the status of the 'system asset' with an independent third party

auditor, the Contractor will not be penalized for the whole

duration of said validation process.

Please confirm that DOTC will be a signatory to the handover

documents.

Penalties shall be imposed in accordance with Section VII Item 4.

Provided however that the validation should not be more than one

(1) month from the issuance of the NTP.

DOTC shall be a witness to the handover documents.

ANNEX A



Page 5 of 34

Item

No.

Query



Response

7

Considering the condition of MRT3 assets/equipment as

mentioned by DOTC-MRT3 representatives during a senate

hearing last September 1, 2014 i.e. DOTC requires an X amount

in billions of pesos to improve the condition of MRT3 system to

address the common causes of breakdowns/revenue interruptions

particularly the traction motors, we opine that it is unfair to

impose penalty to the winning proponent since it is already

established that a General Overhaul is required to avert frequent

breakdowns. Will DOTC consider lifting the penalty provisions

for this contract until the required improvements are completed?















follows:





8

Can DOTC consider reducing the minimum no. of available cars

during the peak period and the penalty conditions imposed for

the Escalators/Elevators due to the current condition of the

system and its assets?

No. The minimum number of required trains at revenue operations

shall be twenty (20) trains and penalty conditions for the

escalators/elevators will be imposed in accordance with Section

VII Item 4 only upon completion of the elevator rehabilitation

project.

ANNEX A



Page 6 of 34

Item

No.

Query



Response

9

Peak Period: We opine that the figure representing the Penalty

Amount for every 20mins is inconsistent with the figure

representing the Reference Penalty which is based on per car

peak period. Considering the 3 hour peak period shown in the

TOR, we opine that the Penalty Amount should be around P9000

only per car for every 20mins. Is our understanding correct?

Please clarify.

Computed on a “per Peak Hour” basis, the penalty of Php

27,000.00 per car for the first 20min and for every 20 minutes

thereafter not exceeding the Reference Penalty amount of Php

80,000 per car per peak period will be imposed if the number

of cars provided at Insertion/Removal area is less than 60 cars

or 20 trains in accordance with the timetable issued by DOTC-

MRT3. During peak hour operations, penalty of Nine

Thousand Pesos (Php 9,000.00) per car per twenty (20) minutes

will be imposed for every car removed from the revenue line.

ANNEX A



Page 7 of 34

Item

No.

Query



Response

10

The current conditions of the rails have been observed to be not

in their proper state due to either poor maintenance or the outright

lack of maintenance. There have been accurate information and

data gathered wherein this current state of the rails, aside from

the same not being maybe suitable for the system's continued

operations, is not an appropriate basis to determine a reasonable

the adopted KPI.It is not unreasonable to assume that these KPIs

were calculated against a rail condition that is not in a degraded

state. The current degraded condition of the rails is not new to

anyone as news reports about train interruptions have been traced

to poor rail condition of the MRT3 rails. It was also reported that

this was the reason for the reduction of the speed of the trains to

only 40 kph.















follows:





ANNEX A



Page 8 of 34

Item

No.

Query



Response

11

The signaling system, with the proprietary nature of its software,

hardware, and its other appurtenances, have reportedly been not

sufficiently maintained. In fact, there were reported instances of

some glitches in the system that have been traced to such

improper or insufficient maintenance due to the lack of the

needed spare parts caused by obsolescence. Not upon this

degraded condition of the signaling system, we assume that these

KPIs were calculated. We assume, however, that they were

calculated against a properly maintained and perfectly operating

signaling system, which is not obtaining in the present condition.















follows:





ANNEX A



Page 9 of 34

Item

No.

Query



Response

12

We also discussed in the said Pre-Bid Conference the matter of

one 3-hour Peak Service Period in the morning and another 3-

hour Peak: Service Period in the afternoon as appearing in the

Terms of Reference.However, when we look at the BLT

Agreement of the MRT3 Project, we see a required general

overhauling of the rail vehicles every after s" years of use, which

has as basis of rail vehicle usage of a 2-hour Peak: Service Period

in the morning and another 2-hour Peak Service Period in the

afternoon.By the maintenance records of the said vehicles, the

supposed 8th general overhauling must now be implemented this

year, which we think will not happen.It has to be noted that the

observance of the one 3-hour Peak Service Period in the morning

and another 3-hour Peak Service Period in the afternoon has long

been implemented and that the ideal every 8th year general

overhauling is not any more appropriate in view of the real extent

of the past and current usage of these vehicle. Under this type of

use, the 8th year activity must have to be done much ahead. Thus,

we see here also the degraded state of these vehicles.Here, we

assume again that the KPIs in the Terms of Reference were not

calculated against this degraded state of the vehicles.

The three (3) hour peak period is maintained.

ANNEX A



Page 10 of 34

Item

No.

Query



Response

13

General Bid Bulletin No. 04-2014, which was posted recently in

the DOTC website, seems to be only a partial reply to some

queries raised in this procurement, and it appears to have been

issued seven days prior to 13 October 2014, the bid date, with a

number still unanswered.Does this mean that, as the BAC shall

issue a reply to the remaining queries, it will necessitate the

movement of the bid date to a later day that will just make the

process comply with Section 22.5.1 of the Revised Implementing

Rules and Regulations of Republic Act No. 9184?

Answers to queries shall be in the General Bid Bulletin to be issued.

14

It was mentioned that in the event that any sub-contractor is

found by the procuring entity to be ineligible, the sub-contracting

of such portion of the goods shall be disallowed. In case when

the bidder only identify the sub-contractor during the contract

implementation as allowed under Section 8.2. , will the procuring

entity allow the bidder to replace the disallowed sub-contractor?

If it is allowed, is there a time frame or limit on the replacement

of the disallowed sub-contractor/

Replacement of the submitted bid shall not be allowed as this will

constitute improvements of the bid proposal.

ANNEX A



Page 11 of 34

Item

No.

Query



Response

15

It was mentioned that similar contracts shall refer to contract

involving the maintenance of railway tracks, rolling stocks,

railway stations and railway power supply. Please clarify why

signaling, telecommunication, OCS,AFCS, station/depot

equipment and facilities was not specifically included under

similar contracts where in fact maintenance of these items will

be part of the contract.

Also on our understanding, similar contract would mean a

maintenance contract performed on a system which is "generally

similar to MRT3 System" in terms of rolling stock-light rail,

power supply and OCS, track system, stations and signaling

system.

The observation that similar contract means "generally similar to

MRT3 System" in terms of rolling stock-light rail, power supply

and OCS, track system, stations and signaling system is correct.

16

Sub-contracting the project in full/entirety of the scope of works

is not allowed. This clause is quite confusing and should be

revised considering that it was also mentioned that the contractor

shall sub-contract directly to the OEM of elevator, escalator,

signaling and that DOTC MRT3 may allow the contractor to sub-

contract maintenance of rolling stock, civil and tracks, power and

OCS, signaling and communications, station/depot equipment

facilities and AFCS.

Sub-contracting the project in full/entirety of the scope of works is

not allowed. However, subcontracting elevator/escalator and

signaling to Original Equipment Manufacturer is allowed.

ANNEX A



Page 12 of 34

Item

No.

Query



Response

17

The supplier shall carry sufficient inventories to assure ex-stock

supply of consumable spares for the Goods for the period as

provided in SCC Clause 17.3

Under SCC Clause 17.3 it was indicated that "For Expendable

Supplies, three (3) months after acceptance by the Procuring

Entity of the delivered Goods or after the Goods are consumed

whichever is earlier. Since there may be cases wherein

Expendable Supplies have to be procured abroad, this clause has

to be extended or modified to provide the Supplier/Contractor

ample time to process the procurement and delivery of the

aforesaid supplies.

8 of the Bidding Documents, shall now read as follows:














follows:





ANNEX A



Page 13 of 34

Item

No.

Query



Response

18

As mentioned, the period of correction of defects in the warranty

period is seven calendar days from notice of defects. This period

is too short and has to be modified considering that correction of

defects may require preparation and approval of

procedures/methodologies and acquisition of parts, equipment,

tools, supplies from either local market and abroad.

The correction of defects during the warranty period shall be done

immediately and the penalty provisions shall be imposed for such

failure.

ANNEX A



Page 14 of 34

Item

No.

Query



Response

19

Indicated as one of the Contractor's Commitments is to "maintain

at least six (6) months supply of fast moving spare parts,

consumables and other related materials and to replenish the

quantity they have received from the outgoing Maintenance

Contractor. Please harmonize this in accordance with our query

under SCC6.2.















follows:





ANNEX A



Page 15 of 34

Item

No.

Query



Response

20

The contractor will be in charge of the maintenance in normal

operating status the existing magnetic type AFC for a period of 1

year. Is this a guaranteed period? Or is there a possibility that

maintenance take over by the AFC Provider will be earlier or

longer than 1year? In such cases what will be conditions on

maintenance contract payment for this particular system?

Once the new AFC provider is in place the corresponding

maintenance cost for AFC will be deducted. The bid proposal shall

indicate the maintenance cost of existing AFCS.

21

Please clarify the meaning of accumulated contract.Does it mean:

• 15 years cumulative contracts (maintenance of a complete

similar railway system) by a single entity within the JV

• Or 15 years cumulative contracts (maintenance of a complete

similar railway system) of the different members within the JV

• Or 15 years cumulative contracts (maintenance of railway sub-

system) of the different members of the JV

An entity in the Joint Venture (JV) must have at least 15 years-

experience per discipline either accumulated or single contract to

qualify in the experience requirement.

ANNEX A



Page 16 of 34

Item

No.

Query



Response

22

The bidder is also required to submit the Nominated Sub-

Contractor (for all proprietary fields). Since there are already

existing Sub-Contractors for all proprietary fields it would be

better if the Procuring Entity would just provide the list of these

sub-Contractors to the bidders.

The bidder is also required to submit the list of Suppliers for Parts

and Consumables. Since all the parts suppliers are already known

to the Procuring Entity it is better to just provide the list of

suppliers to the bidders. For consumables, it is very premature at

this stage to indicate the list of suppliers for each item as this will

be sourced out later when the contract is awarded.

The procuring entity cannot provided additional information to

bidders to complete the bid proposal.

23

It was mentioned that one of the specific objective was to provide

Special Repairs for the Rail Vehicles, permanent ways and other

related systems and sub-systems. It has to be clarified however

whether the cost (labor and materials) of performing all special

repairs will be on the account of the Client.

Special repairs include labor cost and materials.

24

In the footnote, it was mentioned that the parameters may change

upon implementation of the CAPEX Project and corresponding

adjustments are subject to instructions of the Client. Does it mean

that an additional contract will be prepared and signed by the

concerned parties to cover the contract changes and cost?

Yes, if maintenance of CAPEX will be awarded to the winning

maintenance provider beyond the warranty

ANNEX A



Page 17 of 34

Item

No.

Query



Response

25

Considering that MRT3 has been in operation for more than 14

years, we believed that the documents listed are already in

existence or in place. In order to be consistent and provide

continuity with what is being currently practiced and used for the

system, it would be better if these existing documents are

provided to the bidder/s for their improvement, updating or

incorporation of necessary changes. This query is also related to

the same additional duly signed technical documents (reference-

page 77) that must be included in the first envelope.

The bidders should submit these plans and manuals as part of their

bid proposal.

26

To properly prepare a bid which would be responsive to the

current situation and condition of the system, the "Inventory and

Status Assessment" (baseline condition of system assets)

mentioned therein should have been included as part or as

attachment to the bid documents.

Maintenance Audit Report of 2010 may be secured from the BAC

Secretariat.

ANNEX A



Page 18 of 34

Item

No.

Query



Response

27

In consideration of the present condition of the wayside system

(worn-out or deteriorated tracks/rails, outdated signaling system)

where the failures or service interruption usually last for hours,

the winning maintenance contractor would then be heavily

penalized as the number of trains are reduced due to either

stoppage or implementation of provisional service operation. On

our view, to make the maintenance contract viable and attractive

to the bidders, application of penalties on reduction of trains due

to wayside system failures should either be revised or much

better if removed until such time that the condition of the present

wayside system hasbeen fully rectified.















follows:





ANNEX A



Page 19 of 34

Item

No.

Query



Response

28

For signaling components that are only available for procurement

or repair abroad, the 6 weeks duration seems to short and has to

be adjusted to accommodate processing, shipping, repair/test and

other custom requirements.















follows:





ANNEX A



Page 20 of 34

Item

No.

Query



Response

29

Part of maintenance is the replacement of outdated parts (as

necessary) for the MRT3 AFC Equipment. We are aware of the

fact that presently worldwide, much of the railway system have

already migrated to contactless ticketing system, so it would be

very hard on the part maintenance contractor to source out for

replacement components and better be excluded from the

maintenance requirement.

AFC is part of the Maintenance Contract and provisions in the

contract involving AFC shall be reviewed and modified

accordingly upon implementation of the new AFC project of

DOTC.

Once the new AFC provider is in place the corresponding

maintenance cost for AFC will be deducted. The bid proposal shall

indicate the maintenance cost of existing AFCS.

30

It was mentioned that the Contractor shall keep ready a special

stock of spare parts and equipment for special repairs to be

available in commercially and technically reasonable quantities

and types for immediate use to return the line to normal operation

as soon as possible without waiting for procurement and delivery

of parts. This statement implies that the cost of special repairs is

to the account or responsibility of the maintenance contractor. On

our understanding special repairs are necessary repairs on defects

or damages caused by acts, events or failures beyond the control

of the maintenance contractor and therefore should be borne by

the Client. In addition to the above, we need clarification if the

special stock of spare parts and equipment for special repairs has

already been considered and included in the list of "total

mandatory quantity requirements for 3-year contract" (page 225-

262)

Please refer to Special Repair Provision in the Section VII of the

Bidding Documents.

ANNEX A



Page 21 of 34

Item

No.

Query



Response

31 Please clarify why there are no fast moving parts included in the

list for power supply, tracks and permanent ways, E & M and

Depot equipment.

The fast moving parts for power supply, tracks and permanent

ways, E & M and Depot equipment shall be included in the bid

proposal as necessary. However, absence of said documents shall

not be ground for disqualification.

32 Please clarify why there are no consumables included in the list

for OCS, power supply, AFC, tracks and permanent ways and

depot equipment.

The list of consumables for power supply, tracks and permanent

ways, E & M and Depot equipment shall be included in the bid

proposal as necessary. However, absence of said documents shall

not be ground for disqualification.

33

Please clarify why the maintenance manuals of the following

equipment were not included in the list:

• Bogie repair hoist

• Bogie turntable

• Car hoist and body stands

• Access tower

• Hydraulic press

• Forklift truck

• Pallet truck

•Points grinder

• Corrugation grinder

• Road rail vehicle re-railing

• Compressed air system

• Train washer plant

• Building electrical and mechanical equipment

Maintenance Manual for such equipment should be part of the bid

proposal.

ANNEX A



Page 22 of 34

Item

No.

Query



Response

34

In relation to the Pre-Bid Conference held last 14 October 2014

for the Project DOTCMRT-3 System Maintenance Service

Provider, we would like to request copy of minutes of said

meeting.

Prospective bidders will be transmitted a copy of the Minutes of

Meeting of the second Pre-Bid Conference held on 14 October

2014 upon written request.

35

Inventory and Status Assessment or System Declaration should

be provided or made available by the DOTC to all the interested

bidders. This document will allow the bidder/s to have a clearer

picture in order for them to prepare a more responsive bid

proposal. The document should contain among others the

following:

• Status or condition of each vehicles/trains (including its major

equipment! components)

• Status or condition of other sub-systems (Tracks and

Permanent Ways, Signaling, Power Supply, OCS, Telecom,

AFC, Building Facilities, E & M equipment, Depot Equipment,

etc.) including the major equipment/components

• Quantity or stock level of remaining spare parts per subsystem

(including pending orders if available)


Secretariat.

ANNEX A



Page 23 of 34

Item

No.

Query



Response

36

The description and quantity of spare parts indicated on the lists

was extracted from the original "Maintenance Agreement

between MRTC and Sumitomo for which the listed spare parts is

for a "newly commissioned railway system and may not fit to the

requirements of the "existing used and degraded system".

Considering that the MRT3 has been operation for 14 years, the

quantity of spare parts should be based on the current

consumption rates, current system condition, and the

requirements necessary to restore and maintain the system. In

addition, please clarify why only the quantity of initial spare parts

for LRV Maintenance was labeled "total mandatory quantity

requirements for 3-year contract" while non for the other sub-

system.

Maintenance Specification is not based on the age of the System.

Please refer to Annex A and B page 222-262.

37

The description and quantity of additional machines and

equipment indicated on the lists was extracted from the original

"Maintenance Agreement between MRTC and Sumitomo" which

was then foreseen and procured to address the maintenance

requirement and activities for a "newly commissioned railway

system". In the absence of the requested Inventory and Status

Assessment or System Declaration we have no idea as to whether

these previously procured additional machines and equipment

are still in existence or operational.

Maintenance Specification is not based on the age of the System.

ANNEX A



Page 24 of 34

Item

No.

Query



Response

38

The description and quantity of special tools, fixtures and jigs

indicated on the lists was extracted from the original

"Maintenance Agreement between MRTC and Sumitomo" which

was then foreseen and procured to address the maintenance

requirement and activities for a newly commissioned railway

system". In the absence of the requested Inventory and Status

Assessment or System Declaration we have no idea as to whether

these previously procured special tools, fixtures and jigs are still

in existence or operational.


Secretariat.

39

The description and quantity of measuring instrument on the lists

was extracted from the original "Maintenance Agreement

between MRTC and Sumitomo" which was then foreseen and

procured to address the maintenance requirement and activities

for a "newly commissioned railway system". In the absence of

the requested Inventory and Status Assessment or System

Declaration we have no idea as to whether these previously

procured measuring instruments are still in existence or

operational.

Maintenance Specification is nor based on the age of the system.

ANNEX A



Page 25 of 34

40

In consideration of the present degraded MRT3 system

operations due to problems with tracks, rolling stock and

signaling (as a result of either lack of spare parts, obsolescence

or underprovided maintenance), we believed that the application

of KPI and penalties is truly inappropriate and should be deferred

up to the time that the problems with the above-mentioned

systems have been fully rectified.Please note that rectification

completion will depend on a lot of factors such as:

• Availability of spare parts (inclusive of order, lead and delivery

time). This may be difficult or win take time for obsolete parts

• Availability of necessary maintenance equipment or test

equipment

• Installation rectification duration

• Maintenance window (available non-revenue hours to rectify

the wayside system and the rolling stock)

• Testing and commissioning time

Due to the above, we could not therefore estimate how long I will

it take for the rectification works to be completed. What we could

then suggest is for the DOTC to revise the contract provisions in

such a way that the "winning bidder" will be given ample period

or a "relaxed period" to fully identify and assess the conditions

and requirements to rectify or normalize the system and perform

the necessary corrections without the application or provisions

on KPI's and Penalties.

Once the "relaxed period" has been determined and agreed

between DOTC and the winning bidder, the imposition of the

KPI's and Penalties could then be established















follows:





ANNEX A



Page 26 of 34

Item

No.

Query



Response

41

In view of the current condition and status of the MRT3 rail

system of which the public is not fully aware or exactly aware,

bidders are apprehensive of the expectation of the public with the

assumption of a new maintenance provider. As it is widely

accepted among persons who are knowledgeable of the only

available solutions to this current status and condition, that these

solutions are not that which are achievable overnight, and it will

take a while to have them implemented, the BTC cannot be

assured of the public's acceptance of the fact that this condition

or status cannot be improved overnight.In support to assure a

bidder's confidence that it is protected from this problem, the

issuance of a (a) System Status Declaration - to cover the whole

system, and (b) Subsystems Status Declaration - to cover each

subsystem is requested and this issuance will achieve the

following:a. A baseline upon which the accurate calculation of

the technical and financial proposal of a bidder can be based,b.

the real status of the system and its subsystems can be made

known upon which the assessment by anyone of the performance

of the winning contractor can be calculated.


Secretariat.

ANNEX A



Page 27 of 34

Item

No.

Query



Response

42

As it has been deemed that the Terms of Reference of the tender

as having been based on a system that is in proper and good

condition, which condition is not obtaining in the current MRT3

system, the measures and gauges that have been adopted (KPIs)

through which penalties are to be imposed, have been described

as unreasonable.This unreasonableness had made the tender not

attractive to bidders.This being such, the revision of the

conditions and grounds for the imposition of the penalties, and

the same to be observed only upon the completion of the

rehabilitation of works that have been put on stream to improve

the degraded rail system, must have to be pursued.The graduated

re-imposition of the grounds and conditions for the imposition of

the penalties is fair and reasonable to both the procuring entity

and the maintenance provider. An example would be: once the

signaling system shall have been rehabilitated/upgraded, the

penalties imposable by reason of lack or improper maintenance

of the signaling system or any part thereof must already be

observed, this will not relieve the maintenance provider from

undertaking the required maintenance works.

KPIs and the Maintenance Specifications are not usually based on

age and status of system but is premised on the desired level of

service.















follows:





ANNEX A



Page 28 of 34

Item

No.

Query



Response

43

One of the ways that will assist a bidder to confidently calculate

its technical and financial proposal is to allow them to have full

access to all records and documents of performance of previous

and current maintenance works done on the whole system.

Such access must be available not only during contract

implementation, but more importantly, way ahead before bid

submission.


Secretariat.

44

In GBB No. 07-2014, Annex A item 4, we requested for the

average hourly ridership data during weekdays at peak periods

during the past 12 months. The answer we got is that the Head of

Primary BAC Secretariat shall provide Bidders access to

ridership data.

Can DOTC please simply provide the data to all bidders? If it is

too voluminous, can we just get the average hourly ridership data

for June 2013, December 2013 and January 2014. If this request

cannot be granted, can you please provide name and contact

number of the Head of the Primary BAC Secretariat? May we

please invoke that the information requested be provided within

the period stated in ITB clause 10.2.

Bidders may request for access to ridership data from the Head of

the Primary BAC Secretariat:

ATTY. ZENAIDA B. BITENG

Head of the Primary BAC Secretariat

Unit 22, 2nd Floor, The Columbia Tower, Ortigas Avenue, Brgy.

Wack-Wack 1555 Mandaluyong City, Philippines

Tel. Nos.: (+632) 727-7960 local 229

Email Address: [email protected]

ANNEX A



Page 29 of 34

Item

No.

Query



Response

45

In GBB No. 07-2014, Annex A item 19 to 24 queries got a similar

response as follows "Please refer to Item 11I(55)(c) of the

Technical Specifications." The reference item reads "Failure of

Client, or any of its respective affiliates, subcontractors or

representatives to make the System or any portion thereof,

available to Provider for scheduled maintenance in accordance

with the requirements of approved Manuals and the Operating

Assumptions (refer to Annex C);" The quoted reference item III

(55) (c) of the Technical Specifications does not answer queries

19 to 24. Can we please have a simple "Yes" or "No" answer.

Item III (55)(c) states that: “Special Repairs” means any repair of

the System required as a result of any damage thereto caused by

any of the following:

(a) Failure of Client or any of their respective affiliates, contractors,

subcontractors or representatives, to operate the System in

accordance with the operating and maintenance manuals and

established operating rules;

(b) Acts of passengers or trespassers other than the Client’s or

Maintenance Provider Personnel resulting in failure or interruption

of service;

(c) Failure of Client, or any of its respective affiliates, contractors,

subcontractors or representatives to make the System or any portion

thereof, available to Provider for scheduled maintenance in

accordance with the requirements of the approved Manuals and the

Operating Assumptions (refer to Annex C);

(d) Actions of unauthorized or unqualified persons unless the same

are caused by the negligence of the Contractor;

(e) Animals, birds or foreign objects unless the same is the

consequence of the negligence of the Provider;

(f) An event of force majeure;

(g) Vandalism or other criminal activity;

(j) Flooding, unless the same is the result of the negligence of the

Contractor, such as improper provision of maintenance of drainage;

(h) System improvements initiated by MRT-3.

ANNEX A



Page 30 of 34

Item

No.

Query



Response

46

In GBB No. 07-2014, Annex A item 35, we quote the last

paragraph of DOTC's response "Warranties extended by the

OEM to the Maintenance Provider for spare parts procured shall

also be assigned to DOTC-MRT3. OEM shall ensure the

availability of spare parts for at least five (5) years after

termination of warranty period".

It is not within the control of the bidder to impose such

requirements from the OEM. We opine that this requirement is

very unreasonable. Can you please reconsider?

The warranties for spare parts procured should be in favor of the

DOTC-MRT3 as end-user/Client. In addition, the maintenance

provider shall ensure that the availability of spare parts for at least

five (5) years after the termination of warranty period is included

in the contract with the OEM.

47

In GBB No. 07-2014, Annex A item 36, yes we agree that the

maintenance contract is independent of the BLT agreement. But

the technical considerations such as design capacity indicated in

the BLT are obviously a main parameter of the maintenance

contract. As stated in the recent Senate Hearings and also on

many news articles, the MRT 3 system is already subject to

overload. If this is true, then the system is being operated under

conditions defined in item III (55) of the Technical

Specifications.Was there any time in the past that the capacity of

23,600 PPHPD at AW3 crush loading as stated in Section VII of

the Technical Specifications (page 86 of 289), been exceeded? If

yes, then please confirm that the system is being operated, in

some instances, above the design capacity?

The system is operated in accordance with the design of eight (8)

passengers per square meter, headways are more than the design of

three (3) minute headway. The MRT3 is actually operating at crush

load but overloading the trains are not possible.

ANNEX A



Page 31 of 34

Item

No.

Query



Response

48

In GBB No. 07-2014, Annex A item 37.

Can DOTC simply provide the information being requested to all

bidders? Please. Please. If this request cannot be granted, can you

please provide name and contact number of the Head of the

Primary BAC Secretariat? May we please invoke that the

information requested be provided within the period stated in

ITB clause 10.2.

Bidders may request for access to Control Center Daily Report

from the Head of the Primary BAC Secretariat:

ATTY. ZENAIDA B. BITENG

Head of the Primary BAC Secretariat

Unit 22, 2nd Floor, The Columbia Tower, Ortigas Avenue, Brgy.

Wack-Wack 1555 Mandaluyong City, Philippines

Tel. Nos.: (+632) 727-7960 local 229

Email Address: [email protected]

49

In GBB No. 07-2014, Annex A item 44.Please allow us to

reiterate our request for the list of consumables? How can a

prospective bidder estimate the cost of consumables if the list of

consumables will not be provided by DOTC? May we please

invoke that the information requested be provided within the

period stated in ITB clause 10.2.

Please refer to pages 229 to 231 of the Bidding Documents.

50

In GBB No. 07-2014, Annex A item 50.

How many stations is equivalent to 172,000 sq.m? Shouldn't this

fall under "Special Repairs?"

The 172,000 sq.m. covers all painted portions of the thirteen (13)

stations/terminals and the depot.

This is included in the Maintenance Contract.

51

General

Please confirm if the original maintenance contractor's monthly

fee 10 years ago is around 1.4M USD (exclusive of escalation)?

The contract for bidding is with a different Approved Budget for

the Contract (ABC).

ANNEX A



Page 32 of 34

52

We opine that the original monthly maintenance fee is an

average of the foreseen monthly costs (plus margin) during the

original contract duration of 10 years or 120 months of the

original maintenance contractor. Although the average is 1.4M

USD per month (which is approximately the same monthly ABC

of this contract being bid), the monthly costs actually vary from

month to month throughout the 10 year term. The variation of

actual monthly price which may be represented as "peaks and

valleys" in a time-cost graph, is significant (i.e. monthly standard

deviation is high). During the 10 year original maintenance

contract term, the total annual cost for year 1 would normally

increase the following year and would continuously increase

until it reaches a peak perhaps during the implementation of the

rolling stock overhauls. After which, the total annual cost would

logically drop again. The cycle is repeated. Therefore, even if the

average maintenance price is 1.4M USD per month, logic would

dictate that the monthly ABC of 1.4M USD would be more than

sufficient on some months or insufficient on other months,

depending on schedule and impact of the different maintenance

cycles of the different core systems. The preceding statement,

taken together with the fact that the system is already old and

most of its equipment may have reached its design life, then the

monthly average maintenance price of 1.4M USD per month may

be insufficient.Can DOTC re-validate the ABC? Instead of using

past experience or this 1.4M USD average, we believe the

maintenance price should be estimated considering actual needs

and recent price estimates.

The present ABC is computed based on the new maintenance

specifications.

ANNEX A



Page 33 of 34

Item

No.

Query



Response

53

May we suggest that DOTC clearly differentiate the following

activities in relation to the Terms of Reference (TOR) or

Technical Specifications of this 3-year contract (a) Regular

Preventive Maintenance based on O&M Manuals (b) Upgrading,

rehabilitation, restoration activities - or interventions required to

extend the design life of assets (c) Design life cycle

replacementsIs item (b) and (c) not part of the base maintenance

fee? Since item (a) is clearly the scope of this bid, then any KPI

impact of non-implementation of (b) and (c) should not be the

responsibility of the maintenance contractor. Will this be the

principle applied in this contract?

The new maintenance specifications covers regular maintenance,

preventive maintenance and system replacement excluding eight

year major overhauling and other rehabilitation projects of DOTC-

MRT3.

54

We would like to propose and request your good office for the

relaxation of Key Performance Indicator (KPI) in the imposition

of penalty and propose a gradual mandatory KPI in the transition

period due to the status, condition and reliability of LRVs in this

manner:

Period Key Performance

Indicators (KPI)

First Month to Third Month 0 (No KPI)

Fourth Month to Sixth Month 15 LRVs

Sixth Month to Ninth Month 18 LRVs

Ninth Month Onwards 20 LRVs

Computed on a “per Peak Hour” basis, the penalty of Php 27,000.00

per car for the first 20min and for every 20 minutes thereafter not

exceeding the Reference Penalty amount of Php 80,000 per car per

peak period will be imposed if the number of cars provided at

Insertion/Removal area is less than 60 cars or 20 trains in

accordance with the timetable issued by DOTC-MRT3. During

peak hour operations, penalty of Nine Thousand Pesos

(Php9,000.00) per car per twenty (20) minutes will be imposed for

every car removed from the revenue line.

In the event of an upgrade in operation such as operating a four (4)-

car train and/or reduction of headway to two and a half minutes, an

additional payment of Nineteen Thousand Six Hundred Thirty Four

and 7/100 United States Dollars (19,634.7 USD) per car shall be

payable to the maintenance contractor subject to availability of

funds and amendment of the maintenance contract.

ANNEX A



Page 34 of 34

Item

No.

Query



Response

55 We would like to propose and request your good office for an

extension of 30 days for the final submission of bidding

documents.

Due to the urgency of the project the submission and opening of

bids is scheduled on 28 October 2014 at 2:00 p.m. (Please refer to

GBB No. 06-2014).