supply chain management - pia · shipment will be done by supply chain department - pia. k. in case...

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Supply Chain Management

REF: GM (P)/Humsafar (Brand)/19

M/S Sub: Production & Supply of Humsafar Magazine.

Dear Sirs, We are pleased to invite your sealed tenders for the item mentioned above. In case of more than one schedule separate tender for each schedule should be furnished. The terms & conditions of the tender / supplies are given below:-

A) SUBMISSION OF TENDER

1. You are required to send your tenders addressed to General Manager Contracts &

Agreements, PIA Procurement & Logistics Building JIAP Karachi latest by 22-04-2019 by 1030 Hrs. The tenders may be dropped in the tender box marked as “Tender Box Commercial Purchases” placed at the entrance of the PIA Procurement & Logistics Building latest by 10:30 hours on the specified date. You may also send your tenders through registered A/D mail addressed to General Manager Contracts & Agreements, which must reach before the closing date and time mentioned above. Tenders will be opened at 11:00 hours the same day in the presence of tenderers.

2. Tenders received after stipulated date & time shall not be considered. The Corporation will not be responsible for postal delays. The decision of General Manager Contracts & Agreements in this respect shall be final and binding.

3. Bidders are required to submit a Pay Order of Rs. 3000/- (Non-Refundable) as tender fees along with Technical Proposal (Local Bidders).

B) EARNEST MONEY (Local Bidders)

The Tender should be accompanied a Pay Order payable ( va l i d f o r 90 day s f r om the da te o f tender open i ng ) equ i va len t to 2 % o f to ta l b id va lue in the name of M/S PAKISTAN INTERNATIONAL AIRLINES as interest free Earnest Money (Refundable). Earnest Money in any other shape shall not be accepted. Earnest / Security Money deposited against a running contract (s) purchase orders(s) shall not be transferable as earnest money for any other tender. All tenders without Earnest Money shall not be considered.

C) SECURITY DEPOSIT (Local Bidders)

The successful tenderer upon award of Contract / Purchase Order will be required to furnish security deposit (pay order) in the amount equivalent to 5% of total tender value stated in the Letter of Acceptance as interest free Security deposit and to remain valid 3-months after the expiry period of the Contract. The Earnest Money already held can be converted into Security Deposit and balance amount if any shall be deposited as above.

D) PREPARATION OF TENDER “Single Stage Two Envelope Basis”

The BID (Tender) submitted shall comprise of a single package containing two sealed

envelopes, each envelope shall be marked and will contain “TECHNICAL” and “FINANCIAL” proposal.

On the given tender opening date only “Technical Proposal” will be opened in the presence of tenderers available.

The “Financial Proposal” shall be shown to the parties but will be retained with PIA without being opened.

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After Technical Evaluation of the received Technical Proposals, Financial Proposals will be opened publicly at the date, time & venue to be announced and will be communicated to the bidders in advance.

PIA will open the “Financial Proposals” publicly of the parties whose Technical Proposals have been found acceptable.

Financial Proposals of the technically not-acceptable bids shall be returned un-opened to the respective bidders.

E) PREPARATION OF TENDER - TECHNICAL PROPOSAL:

All mandatory requirements are given in the schedule Please give all the available technical details of the items offered by you, supported with the technical literature, brochure, drawings and pictures, client list details, authorization certificates etc. BIDS / Tenders / Technical Proposal received shall be evaluated in accordance with the given technical specifications. PIA‟s requirements with Technical Specifications are given.

Bidders MUST:

Be registered with Sales Tax Authorities. (Please attach copy of Registration

Certificate). (Local Bidders Only) Quote Rates, GST, and other taxes separately. Bid on Prescribed Proforma issued by PIA. Affix the company seal on all tender documents.

Mention clearly Tender Reference on TOP RIGHT CORNER OF PROPERLY SEALED ENVELOPE, BEARING COMPANY’S STAMP

F) PREPARATION OF TENDER – FINANCIAL PROPOSAL

The tenders should be enclosed in double cover. The inner cover should be sealed having enclosed the following documents:

a) Schedule “A” duly filled in, signed and sealed. b) Original Pay Order for Earnest Money (Local Bidders). c) Undertaking on Rs. 100/= above non-judicial Stamp Paper duly signed and stamped by a

Public Notary Oath Commissioner. d) The outer cover should bear address of the General Manager Contracts & Agreements, PIA

P&L Building, Karachi Airport and reference number of the tender with opening date of tender.

e) All information about the services /material proposed to be supplied must be given as required in the schedule to tender.

G) PRICES

a) The Prices mentioned in the tender will be treated as firm till the completion of Purchase Order / Contract.

b) The Prices must be stated both in words and figures. Additional information, if any must be linked with entries on the Schedule to Tender.

c) Offers must be valid for 90 days. H) Duration of Contract

This Agreement shall commence upon the Effective Date and shall remain in effect for two years and extendable to one year based on performance of last two years.

General Manager Procurement Enclosed: Schedule A Term of Reference (ToR) Evaluation Criteria Draft Agreement Integrity Pact Undertaking to Execute the Contract

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TENDER SCHEDULE “A”

SN Description QTY one Year

Unit Rate PKR

Total amount Annual PKR

02 years total Amount.

01 Production & Supply of Humsafar Magazine

60000

Taxes (If any) PKR

Grand Total PKR

Attention:-

Non compliance to the conditions mentioned below at Serial No. 1 to 5 will render the quotation for rejection at the time of opening of tenders. Broad Terms and Conditions of Tender:- 1. Rates must be quoted in words and figures both inclusive of all applicable taxes, charges, duties,

expenses to be borne by the bidder. 2. Offer must be firm and final and valid for 90 days. 3. Incomplete, mutilated offer or offers without/deficient earnest money are liable for rejection. 4. Copy of certificate of registration with Sales Tax collectorate must accompany the quotation.

(Local Bidders Only).

5. PIA will have the right to visit the facility / premises of the tenderer or call for any further documents to establish the capability of firms to undertake this order/contract. PIA‟s decision in this regards shall be final will not be questioned in any court.

We/ I hereby confirmed having read and understood the terms and conditions of the tender and we / I expressly confirm and agree that our tender for the supply of above mentioned items are in terms of and subject to the terms and conditions of the tenders. TENDERER‟S SIGNATURE ______________________ DESIGNATION ____________ ADDRESS_____________________________________________________________ Tel No.______________ Fax No._____________ Email ________________________ GST No._____________ NTN NO.______________________

SEAL _____________________

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Section-1

TERMS OF REFERENCES (TORs) Introduction Pursuing the modern management practice, PIA has taken a decision in principle to outsource the production and supply of its in-flight magazine, HAMSAFAR tothe company with requisite capabilities and experience for editorial, printing services, revenue generation as well as a clear dependability that the magazine will remain the national carrier‟s Marketing and an instrument of positive presentation also of Pakistan. Scope of Work The function of outsourcing of Humsafar is included content development, creative designing, revenue generation, printing and supply of PIA Humafar magazine after every two month. Further details are mentioned below.

1. Magazine Requirements

a. Magazine will have 06 issues in a year, each after 2 month and the producer will supply

following quantity of each issue free of cost.

First year 15,000 copies

Second year 18,000 copies

Third year 22,000 copies (if extended)

b. No: of pages: Minimum 76 and maximum 100 pages including cover and back page

c. Size: A4 Size

d. Printing: Digital printing at (preferably Heidelberg machine)

e. Binding: Gum Binding

f. Page quality: Title and back page Art card 310gm Matt / Glossy lamination and Spot

UV embossing of HUMSAFAR word. Inside page matt finish 128 gm paper.

g. Contents: 70% of its contents in English and 30% in Urdu. 1/3 pages (or 33%) will be

reserved for ads including 4 complementary PIA ads in each issue (Same ratio will carry

forth from 76 to 100 pages as mentioned in point b above).

2. Advertisement Revenue

a. The Producer will be responsible to provide the magazine for the consumption of PIA without

any cost against advertisement revenue generated from the pages of the magazine.

Advertisements will be 1/3 part of total pages of the magazine. Following will be the formula

for advertisement revenue sharing between the producer and the publisher is stipulated in the

table below.

Year Producer part Publisher part

First Year (6 issues) 100* 0%

Second Year (6 issues) 75% 25%

Third year (6 issues) 25% 25%

* Allowed for establishing market and to absorb the initial investment / cost of setting up the arrangement.

a. Submission of publisher‟s revenue share will be submitted by producer on 1st July and 1st

January with consolidated report of revenue.

b. The Producer will responsible for following;

i. Business Development / Sales Promotion for ad spaces by dedicating resources and

developing tariff cards for the purpose after seeking approval of tariff from the

publisher.

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ii. Getting NOC for all the ads from PIA Brand Management to check consistency of

message and for evaluating whether the content of the ads / advertising brands are not

in violation of established ethical norm, national interests and competition product

promotion etc.

iii. Collection of Ad proceeds / revenue from the advertising brands / companies for its

share and publisher‟s share from second years onward.

iv. At no point the publisher will be exposed to any legal obligation or litigation from the

advertisers including but not limited to tariff and collection of amounts.

c. The commission of the intermediate/advertisers/business development will be 15% on each

advertisement, paid from the producer‟s share to the intermediate / advertising agency.

d. The producer will not charge any rate higher than what is approved by the publisher. In case

the producer is giving discount on the published tariff, it will be from the share of the

producer and not from that of the publisher.

e. The producer will raise invoice to advertiser and collection of amounts and outstanding

amounts from advertiser, as mentioned in point 2(b)iii.

f. In any case of default/non recovery of amounts from advertiser, Publisher‟s part will not be

delayed for payment.

g. The producer will ensure placement of ads only on advance payments along with Release

Order (RO) from the advertiser(s).

h. In case the producer suggests a specific campaign or activation to promote the magazine and

its advertisement revenue, which involves expenses, the producer can request PIA to share the

event costs if the plan is mutually agreed by both the parties.

i. The final editorial control of the contents, design and layout of the magazine (including the

table of contents) will be with General Manager Brand Management.

j. All approvals related to PIA and Editorial Board will be sought out by General Manager Brand

Management whereas contractual issues, printing quality and quantity check for each issue /

shipment will be done by Supply Chain Department - PIA.

k. In case there is a quality or quantity discrepancy observed, the producer will be responsible to

re-produce or re-print the required quality or quantity as per the satisfaction of Supply Chain

Department.

3. Timelines:

Producer will be bound to follow the following schedule of production and delivery of the each issue of the magazine as mention below.

4. Content Development

a. The producer will develop a broader content calendar annually for the next six issues of the

magazine; will first share the cover page, cover story and table of contents for Publisher's

approval for both English and Urdu.

b. The Producer on advice of Publisher will commence work on development of the Content after

consent on the proposed Theme & Table of Contents of the magazine. The approval on the

content will be provided by the Editorial Board.

c. The Producer will work on drafting of content based on the approved tone of voice.

d. The Producer will gather 50% articles from the renowned & professionalwriters of the industry.

50% articles will be written by Producer‟s in-house writers and PIA employees will also be able

to share their articles to the Magazine upon approval of the Editorial Board.

Activities Each Issue (from Date of Start & from Date of last Delivery) Days

Development of Table of Content with brief 3

Content creation and pictures 10

Final Creative Designs 12

Preparation of Dummy by the Printer 2

Magazine Dummy approval by PIA 10

Printing 20

Delivery 2

Total Duration 59

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e. The Producer will share questionnaire for Interviews of the PIA‟s Management to be covered in

the magazine if required by PIA

f. Producer will include articles carrying at least one promotional article on any foreign or

domestic destination served by PIA with the approval of the Publisher.

g. Producer will include articles carrying positive representation of Pakistan‟s arts and crafts,

exportable products and cultural/sports events, etc.

h. The Producer will also be responsible to gather content or arrange photography for any

article, review reports on any local and international events, PIA Campaigns and PIA

Destinations. However; PIA will provide Air Ticket (PIA Only) and VISA Introduction letter for

international.

i. The Producer will ensure that any content they have acquired has proper licensing rights for

publication of Pictures & articles.

j. The Producer will ensure all content developed and gathered are within the stipulated time

and in accordance with the approval provided by PIA.

k. Only copy rightprotected content and pictures to be used in the magazine.

l. The Producer will ensure that all printed copies are of same standard and without any errors

after developing and getting approval of the final dummy from the Publisher.

5. Urdu Composition

a. The Producer upon approval on content of English part by the Editorial Board will select

articles for Urdu part of the magazine;

b. The Producer will provide professional translation services of the shortlisted Articles along

with captions, if required by the Editorial Board

c. The Producer will carry out proper composition of the Urdu in order to maintain approved grid

and layout of the magazine

6. Cover Page and Cover Story Design

a. Title page space will not be sold to any brand, It will be designed as per PIA requirement

b. The Producer, based on the approved grid and manual will develop the Cover Page design for

PIA‟s approval;

c. The Producer will design cover page in accordance to the approved theme;

d. The Cover story of the magazine should complement the theme;

e. The overall grid and design will be in accordance with international design standards.

7. Inside Page Layouts &Formatting

a. The Producer will develop & design the remaining articles of the magazine along with relevant

pictures;

b. The Producer will follow the approved grid and style of the magazine;

c. The Producer will also design Urdu articles of the magazine.

8. Proofing and Language Check

a. The Producer will ensure that all content has a consistent tone of voice as approved by the

Editorial Board,

b. The Producer will engage specialized resources to check and reconfirm the content,

c. The Producer will be responsible for any grammatical, spelling and tenses errors in the

content,

d. The Producer will check resolution and copyrights for all images,

9. Final Dummy and Printing Proof

a. The producer will develop the final artwork of the magazine upon the approved size and grid.

b. The producer will produce final dummy of the entire Magazine for approval of PIA

c. PIA‟s approval on the Dummy will encompass the following aspects of the magazine quality:

i. Complete design of the magazine

ii. Picture quality

iii. Contents placement and accuracy

iv. Tone and quality of Voice

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v. Advertisers and advertisement

vi. Total No. of pages and size

d. The producer will ensure its resources are available at the printing process to check on the

proofing;

e. The producer will be responsible to ensure all colors, fonts and images used are well visible

and in their true colors and there are no printing errors;

f. The producer will be responsible that all printed copies are of same standard and without any

errors.

10. Final Printed Magazine & Delivery

a. The Producer will deliver printed copies of the magazine to PIA Procurement and Logistics

Department in Karachi;

b. The Producer will deliver Humsafar magazine, as per schedule to be provided by PIA, in a pack

of 50 magazines in each bundle to PIA Procurement & Logistics department;

11. Production of Digital Magazine

a. The Producer will provide the digital copy of the magazine for online viewing to PIA 2 days

prior to physical delivery of printed magazine.

b. The Producer will develop approved Magazine in proper digital book form for viewing of the

magazine on website;

c. The Producer will develop digital animation of the magazine using professional software to

ensure aesthetics and viewing is not compromised.

12. Delivery of the Magazine

a. The Producer will deliver copies of each issue in PIA Procurement & Logistics Department as

per schedule provided by PIA. Out of the total quantity, 500 copies of each issue will be

provided to the advertisers and promotion of the magazine.

b. The required copies shall be delivered to PIA as per printing quality and material specified in

Clause 1 of this contract and ensuring other elements already approved by PIA at the time of

approving the final dummy as defined in clause 9 (c) and delivery time line. In case of 1st

default (fail to meet quality and time line variation), a penalty of Rs.50,000 will be imposed.

At 2nd default, the amount of penalty will be Rs. 100,000. If contractor defaults 3rd time, PIA

will have the right to terminate the contract immediately and the complete Security Deposit

will be confiscated.

13. Promotion of Humsafar

The Producer will also be responsible for the promotion of Humsafar magazine at all medium. The producer will develop HUMSAFAR digital and social platform and will manage pages for maximum engagement and revenue generation.

14. Development of Magazine Design Manual

The producer will be responsible to develop the design manual of the new Humsafar magazine as per international design standard carrying complete design details including, pictures, color pallets and page layouts for different sections of the magazine in alignment with the overall brand guidelines of PIA.

15. Development of Magazine Content Manual

The Producer will also have to design a content strategy of the magazine carrying the broad table of content for the first year, determining tone of voice, Do‟s and Don‟ts of the content, content collection strategy and magazine execution framework and schedule.

16. Billing & payment

No production bill will be raised from Producer to the Publisher. All the supplies of committed copies will be made free of cost.

17. Advertisement in the Magazine

a. The producer will be responsible for advertisement collection for the purpose of revenue

generation.

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b. Producer will develop a rate card and will get approval from PIA.

c. Advertisement placement will solely be done on the basis of Release Orders received by the

Producer either directly from the client, their agency or through PIA. Ads will be placed on

first come first serve basis. No verbal commitments would be honored by any party.

d. The producer will ensure the quality of the advertisement in the magazine.

e. All ads will be charged as per tariff approved by PIA unless a discount is allowed by PIA.

f. PIA will place advertisement, if producer fails to bring paid advertisement at back page, inside

front and back inside pages,

g. If the magazine printing is delayed by 30 days from the date of its scheduled circulation

communicated to the advertiser due to any reason, the advertiser will not be charged for the

said ad and both parties will lose the revenue share. The advertiser will either be refunded

the complete payment or may be given a free insertion in the next issue. Any kind of

compensation will be offered to the advertiser only upon submission of written compensation

request.

h. All advertisements are subject to approval of the Publisher, who reserves the right to reject or

cancel any ad that do not complement and/or associate with the profile of Humsafar Magazine

and/or PIA guests.

i. Alcohol and Tobacco ads, Political leaning ads, and Direct Competing Airlines ads will not be

accepted for publication.

j. All those brands that can subject to malign and damage the image of Pakistan,PIA and

Humsafar will not be accepted for publication.

k. Any advertisement less than full page ad will not be accepted by the Producer for printing in

the magazine.

l. ROs for placement of advertisement will be accepted on the basis of advance payment

received with the Release Order (RO) from the advertiser to the Producer.

Section-2

Requirements of applicants: The bidder should be a income/sales tax payer having publishing experience, well recognized clientage list, strong financial position and well experienced human resource may apply for this tender. Selection Procedure: i. Application submission with all necessary documents as mentioned in Annexure-1

ii. Screening of application

iii. Profile Technical evaluation as per the Evaluation Criteria mentioned below in TORs

iv. Magazine Sample Evaluation

v. Selection of one successful applicant with highest marks

vi. Issuance of Letter of Intent

vii. Signing of Formal Contract

Evaluation Criteria: All applications will be evaluated as per the Evaluation Criteria in following categories i. Relevant Experience (20 marks)

ii. Magazine Portfolio (20 marks )

iii. Personnel experience and Qualification (20 Marks)

iv. Financial health (10 marks)

v. Litigation history (05 marks)

The bidder with highest marks will be considered as winner/ prequalified for supply of Humsafar magazines.

1. RelevantExperience (Marks Allocated 20)

Proven experience of the bidder/service provider/company in the fields of publishing, printing designing, magazines, In-flight magazines, advertising and relevant projects.Experience certificate

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mentioning the number of years will be provided by the participant at its letter head. One copy of first publishing magazine will be submittedby participant. 2 marks will be allocated to each year of experience up tomaximum 20 marks.

2. Magazine’s portfolio (Marks Allocated 20)

All bidders will have to provide their portfolio of magazines produced in last maximum 20 years. 02 marks will be allocated to each magazine of national or international level in any category. Bidder will provide the magazine copy with list of publications/magazines

3. Personnel Experience Qualification(Marks allocated 20) Participant will provide a certificate of List of employs with type/no. of experience on company letterhead and with NIC/service card copies. PIA will evaluate as per following criteria. Two (02)Marks will be allocated (upto maximum 20 marks for 10 employees) for 01 employees with minimum 5 years of experience in any of the following field. 1. Content development 2. Editorial 3. Concept, Creative and editorial development 3. Client Services

4. Financial worth (Marks allocated 10) Bidder must provide statement of annual turnover for last 3 years along with Bank statement of the company for last 12 months. One Mark will be allocated to each million turnover over from last three years upto maximum 10 marks.

5. Litigation History (Marks allocated 05) Bidder will be evaluated with its litigation history with any entity/Airline current & pending on similar service. One mark will be deducted up to maximum five marks for any current or historical case with any entity/airline (vice versa). Agency is required to submit the case history at its letter head. Otherwise PIA has right to disqualify or terminate the contract if PIA finds any litigation case of the agency, during or later on at any stage.

Technical Evaluation Form (Supply of Humsafar) Bidder‟s Name : _____________________________________________ Documents attached:

Sr.No Phase-1 Criteria Total Remarks

1 Total Relevant Experience

2 Total magazine portfolio

3 Total Personnel and their working experience of each employee

4 Total Financial turnover (PKR)

5 Total Litigation History/Cases

Sr.No Document Yes No Remarks

1 Filled technical evaluation form

2 Pay order PKR 2,000 as tender fee

3 Pay order PKR 10,000 as earnest money

4 Company NTN and Sales tax registration

5 Experience of advertising (company letter head )

6 Financial turnover for year2016,2017,2018 (letter head)

7 Bank statement for last 1 year

8 CNICs of the company head and employees (copies)

9 Human resource details (Company letterhead)

10 Litigation history (Company letterhead)

11 Company Profile

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Any other Detail: _____________________________________________________________________ Signature of bidders____________________________________________________________________ Name ______________________________________________________________________________ Phone/contact: _________________________________________________________________

12 Undertaking on stamp paper (as mentioned below )

13 Integrity Pact(as mentioned below )

14

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First draft

Draft Agreement Humsafar Outsourcing

This Agreement is made on this day ______________________at PIA Head office Karachi Between M/s Pakistan International Airlines Corporation Limited, based PIA Head Office at old terminal Karachi Airport, herein after refers as „The Publisher‟.

And ABC----- The Producer‟ who has won the tender of PIA outsourcing Humsafar Magazine providing best quality and rates among all other participants.

Whereas

Free of cost supply of PIA HUMSAFAR PIA In-flight Magazine

Terms and Conditions

18. Magazine Requirements

h. Magazine will have 06 issues in a year, each after 2 month and the producer will supply

following quantity of each issue free of cost.

First year 15,000 copies

Second year 18,000 copies

Third year 22,000 copies (if extended)

i. No: of pages: Minimum 76 and maximum 100 pages including cover and back page

j. Size: A4 Size

k. Printing: Digital printing at (preferably Heidelberg machine)

l. Binding: Gum Binding

m. Page quality: Title and back page Art card 310gm Matt / Glossy lamination and Spot

UV embossing of HUMSAFAR word. Inside page matt finish 128 gm paper.

n. Contents: 70% of its contents in English and 30% in Urdu. 1/3 pages (or 33%) will be

reserved for ads including 4 complementary PIA ads in each issue (Same ratio will carry

forth from 76 to 100 pages as mentioned in point b above).

19. Advertisement Revenue

b. The Producer will be responsible to provide the magazine for the consumption of PIA without

any cost against advertisement revenue generated from the pages of the magazine.

Advertisements will be 1/3 part of total pages of the magazine. Following will be the formula

for advertisement revenue sharing between the producer and the publisher is stipulated in the

table below.

Year Producer part Publisher part

First Year (6 issues) 100* 0%

Second Year (6 issues) 75% 25%

Third year (6 issues) 25% 25%

* Allowed for establishing market and to absorb the initial investment / cost of setting up the arrangement.

l. Submission of publisher‟s revenue share will be submitted by producer on 1st July and 1st

January with consolidated report of revenue.

m. The Producer will responsible for following;

v. Business Development / Sales Promotion for ad spaces by dedicating resources and

developing tariff cards for the purpose after seeking approval of tariff from the

publisher.

vi. Getting NOC for all the ads from PIA Brand Management to check consistency of

message and for evaluating whether the content of the ads / advertising brands are not

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in violation of established ethical norm, national interests and competition product

promotion etc.

vii. Collection of Ad proceeds / revenue from the advertising brands / companies for its

share and publisher‟s share from second years onward.

viii. At no point the publisher will be exposed to any legal obligation or litigation from the

advertisers including but not limited to tariff and collection of amounts.

n. The commission of the intermediate/advertisers/business development will be 15% on each

advertisement, paid from the producer‟s share to the intermediate / advertising agency.

o. The producer will not charge any rate higher than what is approved by the publisher. In case

the producer is giving discount on the published tariff, it will be from the share of the

producer and not from that of the publisher.

p. The producer will raise invoice to advertiser and collection of amounts and outstanding

amounts from advertiser, as mentioned in point 2(b)iii.

q. In any case of default/non recovery of amounts from advertiser, Publisher‟s part will not be

delayed for payment.

r. The producer will ensure placement of ads only on advance payments along with Release

Order (RO) from the advertiser(s).

s. In case the producer suggests a specific campaign or activation to promote the magazine and

its advertisement revenue, which involves expenses, the producer can request PIA to share the

event costs if the plan is mutually agreed by both the parties.

t. The final editorial control of the contents, design and layout of the magazine (including the

table of contents) will be with General Manager Brand Management.

u. All approvals related to PIA and Editorial Board will be sought out by General Manager Brand

Management whereas contractual issues, printing quality and quantity check for each issue /

shipment will be done by Supply Chain Department - PIA.

v. In case there is a quality or quantity discrepancy observed, the producer will be responsible to

re-produce or re-print the required quality or quantity as per the satisfaction of Supply Chain

Department.

20. Timelines:

Producer will be bound to follow the following schedule of production and delivery of the magazine as mention below.

21. Content Development

m. The producer will develop a broader content calendar annually for the next six issues of the

magazine; will first share the cover page, cover story and table of contents for Publisher's

approval for both English and Urdu.

n. The Producer on advice of Publisher will commence work on development of the Content after

consent on the proposed Theme & Table of Contents of the magazine. The approval on the

content will be provided by the Editorial Board.

o. The Producer will work on drafting of content based on the approved tone of voice.

p. The Producer will gather 50% articles from the renowned & professional writers of the

industry. 50% articles will be written by Producer‟s in-house writers and PIA employees will

also be able to share their articles to the Magazine upon approval of the Editorial Board.

q. The Producer will share questionnaire for Interviews of the PIA‟s Management to be covered in

the magazine if required by PIA

Activities Each Issue (from Date of Start & from Date of last Delivery) Days

Development of Table of Content with brief 3

Content creation and pictures 10

Final Creative Designs 12

Preparation of Dummy by the Printer 2

Magazine Dummy approval by PIA 10

Printing 20

Delivery 2

Total Duration 59

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r. Producer will include articles carrying at least one promotional article on any foreign or

domestic destination served by PIA with the approval of the Publisher.

s. Producer will include articles carrying positive representation of Pakistan‟s arts and crafts,

exportable products and cultural/sports events, etc.

t. The Producer will also be responsible to gather content or arrange photography for any

article, review reports on any local and international events, PIA Campaigns and PIA

Destinations. However; PIA will provide Air Ticket (PIA Only) and VISA Introduction letter for

international.

u. The Producer will ensure that any content they have acquired has proper licensing rights for

publication of Pictures & articles.

v. The Producer will ensure all content developed and gathered are within the stipulated time

and in accordance with the approval provided by PIA.

w. Only copy right protected content and pictures to be used in the magazine.

x. The Producer will ensure that all printed copies are of same standard and without any errors

after developing and getting approval of the final dummy from the Publisher.

22. Urdu Composition

d. The Producer upon approval on content of English part by the Editorial Board will select

articles for Urdu part of the magazine;

e. The Producer will provide professional translation services of the shortlisted Articles along

with captions, if required by the Editorial Board

f. The Producer will carry out proper composition of the Urdu in order to maintain approved grid

and layout of the magazine

23. Cover Page and Cover Story Design

f. Title page space will not be sold to any brand, It will be designed as per PIA requirement

g. The Producer, based on the approved grid and manual will develop the Cover Page design for

PIA‟s approval;

h. The Producer will design cover page in accordance to the approved theme;

i. The Cover story of the magazine should complement the theme;

j. The overall grid and design will be in accordance with international design standards.

24. Inside Page Layouts &Formatting

d. The Producer will develop & design the remaining articles of the magazine along with relevant

pictures;

e. The Producer will follow the approved grid and style of the magazine;

f. The Producer will also design Urdu articles of the magazine.

25. Proofing and Language Check

e. The Producer will ensure that all content has a consistent tone of voice as approved by the

Editorial Board,

f. The Producer will engage specialized resources to check and reconfirm the content,

g. The Producer will be responsible for any grammatical, spelling and tenses errors in the

content,

h. The Producer will check resolution and copyrights for all images,

26. Final Dummy and Printing Proof

g. The producer will develop the final artwork of the magazine upon the approved size and grid.

h. The producer will produce final dummy of the entire Magazine for approval of PIA

i. PIA‟s approval on the Dummy will encompass the following aspects of the magazine quality:

vii. Complete design of the magazine

viii. Picture quality

ix. Contents placement and accuracy

x. Tone and quality of Voice

xi. Advertisers and advertisement

xii. Total No. of pages and size

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j. The producer will ensure its resources are available at the printing process to check on the

proofing;

k. The producer will be responsible to ensure all colors, fonts and images used are well visible

and in their true colors and there are no printing errors;

l. The producer will be responsible that all printed copies are of same standard and without any

errors.

27. Final Printed Magazine & Delivery

c. The Producer will deliver printed copies of the magazine to PIA Procurement and Logistics

Department in Karachi;

d. The Producer will deliver Humsafar magazine, as per schedule to be provided by PIA, in a pack

of 50 magazines in each bundle to PIA Procurement & Logistics department;

28. Production of Digital Magazine

d. The Producer will provide the digital copy of the magazine for online viewing to PIA 2 days

prior to physical delivery of printed magazine.

e. The Producer will develop approved Magazine in proper digital book form for viewing of the

magazine on website;

f. The Producer will develop digital animation of the magazine using professional software to

ensure aesthetics and viewing is not compromised.

29. Delivery of the Magazine

c. The Producer will deliver copies of each issue in PIA Procurement & Logistics Department as

per schedule provided by PIA. Out of the total quantity, 500 copies of each issue will be

provided to the advertisers and promotion of the magazine.

d. The required copies shall be delivered to PIA as per printing quality and material specified in

Clause 1 of this contract and ensuring other elements already approved by PIA at the time of

approving the final dummy as defined in clause 9 (c) and delivery time line. In case of 1st

default (fail to meet quality and time line variation), a penalty of Rs.50,000 will be imposed.

At 2nd default, the amount of penalty will be Rs. 100,000. If contractor defaults 3rd time, PIA

will have the right to terminate the contract immediately and the complete Security Deposit

will be confiscated.

30. Promotion of Humsafar

The Producer will also be responsible for the promotion of Humsafar magazine at all medium. The producer will develop HUMSAFAR digital and social platform and will manage pages for maximum engagement and revenue generation.

31. Development of Magazine Design Manual

The producer will be responsible to develop the design manual of the new Humsafar magazine as per international design standard carrying complete design details including, pictures, color pallets and page layouts for different sections of the magazine in alignment with the overall brand guidelines of PIA.

32. Development of Magazine Content Manual

The Producer will also have to design a content strategy of the magazine carrying the broad table of content for the first year, determining tone of voice, Do‟s and Don‟ts of the content, content collection strategy and magazine execution framework and schedule.

33. Billing & payment

No production bill will be raised from Producer to the Publisher. All the supplies of committed copies will be made free of cost.

34. Advertisement in the Magazine

m. The producer will be responsible for advertisement collection for the purpose of revenue

generation.

n. Producer will develop a rate card and will get approval from PIA.

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o. Advertisement placement will solely be done on the basis of Release Orders received by the

Producer either directly from the client, their agency or through PIA. Ads will be placed on

first come first serve basis. No verbal commitments would be honored by any party.

p. The producer will ensure the quality of the advertisement in the magazine.

q. All ads will be charged as per tariff approved by PIA unless a discount is allowed by PIA.

r. PIA will place advertisement, if producer fails to bring paid advertisement at back page, inside

front and back inside pages,

s. If the magazine printing is delayed by 30 days from the date of its scheduled circulation

communicated to the advertiser due to any reason, the advertiser will not be charged for the

said ad and both parties will lose the revenue share. The advertiser will either be refunded

the complete payment or may be given a free insertion in the next issue. Any kind of

compensation will be offered to the advertiser only upon submission of written compensation

request.

t. All advertisements are subject to approval of the Publisher, who reserves the right to reject or

cancel any ad that do not complement and/or associate with the profile of Humsafar Magazine

and/or PIA guests.

u. Alcohol and Tobacco ads, Political leaning ads, and Direct Competing Airlines ads will not be

accepted for publication.

v. All those brands that can subject to malign and damage the image of Pakistan,PIA and

Humsafar will not be accepted for publication.

w. Any advertisement less than full page ad will not be accepted by the Producer for printing in

the magazine.

x. ROs for placement of advertisement will be accepted on the basis of advance payment

received with the Release Order (RO) from the advertiser to the Producer.

35. Exclusivity

a. It is stipulated that The Producer, --------------------- shall have exclusive right to produce the

Humsafar magazine for the duration of this agreement.

b. Further to this, Producer has the exclusive rights to solicit the advertisers for ads, collect the

ads and payments from the advertisers exclusively for the Humsafar magazine during the

tenure of this agreement with complete information to the Publisher.

36. Governing Law

a. The parties shall submit to the exclusive jurisdiction of the courts at Karachi.

b. This agreement shall be governed by the law of Islamic Republic of Pakistan.

37. Claims and Disputes

a. All claims and disputes between the parties hereto arising out of or in connection with this

agreement shall be discussed by the parties in an effort to amicably resolve the same.

b. Producer will indemnify, defend and hold harmless PIA from any third party claims, demands,

litigation on copyrights issues, or liabilities of writing, article and pictures of the Humsafar

magazine,

22. Amendment

This Agreement may not be amended except by instrument in writing signed by the duly authorized representatives of both the parties,

23. Duration of the Agreement

This Agreement shall commence upon the Effective Date and shall remain in effect for two years and extendable to one year based on performance of last two years.

24. Termination In addition to all the other remedies which the parties may be entitled to under the law, this

Agreement may be terminated without assigning any reason by hereto giving to the other party sixty (60) day notice in writing of such termination.

25. Force Majeure

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Except as provided under this agreement neither party shall be liable for any failure or delay in performance of its obligations due to any cause beyond its reasonable control including without limitation act of public enemy, war, rebellion, insurrection, fire accident, act of God and act of state or of the judiciary.

26. Arbitration and Applicable Law If at any time any question, dispute or difference may arise between both the parties under this Agreement, either party may as reasonable, give to the other Notice in writing of the existence of such question, dispute or difference, specifying its nature and the point at issue, for conciliation failing which the matter shall be referred to a single arbitrator nominated by the consent of the parties in accordance with the provision of Arbitration Act of 1940 or any statutory modification or re-enactment thereof for the time being in force or the seat of the arbitration shall be at Karachi.

For For Producer __________________ Pakistan International Airline Corporation Witness 1: Witness 1: Name _______________________ Name _____________________ CNIC No _____________________ CNIC No ____________________ Signature ____________________ Signature ____________________ Witness 2: Witness 2: Name _______________________ Name _____________________ CNIC No ____________________ CNIC No ____________________ Signature ____________________ Signature ____________________

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INTEGRITY PACT / DISCLOSURE CLAUSE

(To be submitted on Company’s Letterhead)

Declaration of Fees, Commissions and Brokerage Etc. Payable by the Suppliers, Vendors, Distributors, Manufacturers, Contractor & Service Providers of Goods, Services & Works___________________________________________ the Seller / Supplier / Contractor hereby declares its intention not to obtain the procurement of any Contract, right, interest, privilege or other obligation or benefit from Government of Pakistan or any administrative sub-division or agency thereof or any other entity owned or controlled by it (GOP) through any corrupt business practice. Without limiting the generality of the forgoing the Seller / Supplier / Contractor represents and warrants that it has fully declared the brokerage, commission, fees etc., paid or payable to anyone and not given or agreed to give and shall not give or agree to give to anyone within or outside Pakistan either directly or indirectly through any natural or juridical person, including its affiliate, agent, associate, broker, consultant, director, promoter, shareholder sponsor or subsidiary, any commission, gratification, bribe, finder‟s fee or kickback whether described as consultation fee or otherwise, with the object of obtaining or including the procurement of a contract, right, interest, privilege or other obligation or benefit in whatsoever form from Government of Pakistan, except that which has been expressly declared pursuant hereto. The Seller / Supplier / Contractor certifies that it has made and will make full disclosure of all agreements an arrangements with all persons in respect of or related to the transaction with Government of Pakistan and has not taken any action or will not take any action to circumvent the above declaration, representation or warranty. The Seller / Supplier / Contractor accepts full responsibility and strict liability for making any false declaration, not making full disclosure, misrepresenting facts or taking any action likely to defeat the purpose of this declaration, representation and warranty. It agrees that any contract, right, interest, privilege or other obligation or benefit obtained or procured as aforesaid shall without prejudice to any other right and remedies available to Government of Pakistan under any law, contract or other instrument, be void-able at the option of Government of Pakistan. Notwithstanding any rights and remedies exercised by Government of Pakistan in this regard, the Seller / Supplier / Contractor agrees to indemnify Government of Pakistan for any loss or damage incurred by it on account of its corrupt business practices and further pay compensation to Government of Pakistan in any amount equivalent to ten time the sum of any commission, gratification, brief, finder‟s fee or kickback given by the Seller / Supplier / Contractor as aforesaid for the purpose of obtaining or inducing the procurement of any contract, right, interest, privilege or other obligation or benefit in whatsoever from Government of Pakistan.

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(RUPEE ONE HUNDRED NON-JUDICIAL STAMP PAPER)

General Manager Procurement) Supply chain Management Pakistan Intentional Airlines Karachi. Subject: UNDERTAKING TO EXECUTE CONTRACT Dear Sir, 1. We / I, the undersigned tenderer do here by confirm, agree and undertake to do following in the event our / my tender for ___________________, is approved and accepted:- 2. That we / I will enter into and execute the formal contract, a copy of which has been supplied to us / me, receipt whereof is hereby acknowledged and which has been studied and understood by me / us without any change, amendment, revision or addition thereto, within a period of seven days when required by PIA to do so. 3. That all expenses in connection with the preparation and execution of the contract including stamp duty will be borne by us / me. 4. That we / I shall deposit with PIA the amount of Security as specified in the contract which shall continue to be held by PIA until three months after expiry of the contract period. 5. That in event of our / my failure to execute the formal contract within the period of Seven days specified by PIA the Earnest Money held by PIA shall stand forfeited and we / I shall not question the same.

Tenderer‟s Signature __________________

Name in Full _________________________

Designation __________________________

Address: ____________________________ _________________________

Phone / Fax # _________________________

N.I.C. # ______________________________

Seal ________________________________

Date ________________________________