RFQ - Tender Specs for Outsourcing SIAEC Integrated Logist…

SIA ENGINEERING COMPANY LIMITEDREQUEST FOR PROPOSALOUTSOURCING- INTEGRATED LOGISTICREQUIREMENTS22 FEBRUARY 2008COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20081-18SIA ENGINEERING COMPANY LIMITEDREQUEST FOR PROPOSAL – INTEGRATED LOGISTICS REQUIREMENTSCONTENTS LIST 11. INTRODUCTION 21.1. BACKGROUND 21.2. PURPOSE 21.3. OVERALL PROJECT TIMETABLE 22. INFORMATION ON SIAEC CURRENT SUPPORT STRUCTURE 32.1. OUR CURRENT SUPPLY CHAIN ARRANGEMENTS 33. TENDER ASSUMPTIONS AND REQUIREMENTS 53.1. GENERAL 53.2. GROWTH 53.3. DEFINITION 53.4. TERM OF CONTRACT 53.5. OUTSOURCING REQUIREMENT 63.6. REPORTS AND FREQUENCY 93.7. IT REQUIREMENTS AND DELIVERABLES 103.8. PRICING 103.9. NON-PERFORMANCE 113.10. LIABILITY 113.11. INSURANCE 113.12. BUSINESS CONTINUITY PLAN 133.13. PROGRAM MANAGEMENT 133.14. PERFORMANCE TARGETS 143.15. OTHER REQUIREMENTS 143.16. LODGEMENT PROCESS 153.17. STATUS OF REQUEST FOR PROPOSAL 153.18. STATUS OF PROPOSAL 153.19. WITHDRAWAL OF BINDING BIDS 163.20. EVALUATION OF PROPOSALS 163.21. CONFIDENTIALITY 163.22. CLARIFICATION OF BINDING BIDS 163.23. RESPONSIBILITY OF BID COSTS 163.24. CONCERNS ABOUT THE BID PROCESS 163.25. EVALUATION CRITERIA 163.26. COMMUNICATIONS 17APPENDIXESA – SIAEC MODEL OF OPERATIONSB – STORAGE CONDITIONS FOR AERONAUTICAL SUPPLIESC – IT SYSTEMS REQUIREMENTSD – TABLE OF REQUIREMENTS AND PRICINGE – KEY PERFORMANCE INDICES (KPI)COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20082-18INTRODUCTION1.1. Background.1 SIA Engineering Company Limited (“SIAEC”) is an aerospace Maintenance, Repair andOverhaul (MRO) service provider based in Singapore. SIAEC provides MRO services toairlines such as technical handling, light maintenance, major airframe maintenance,component repair and overhaul, Fleet Technical Management (FTM) and InventoryTechnical Management (ITM) services..2 SIAEC currently performs receipt and despatch of spares/parts, handling of customerowned parts (COP) to support customers who subscribe to our MRO services as well asComponent Movement Control (CMC) for our list of ITM customers. SIAEC wishes toexplore the possibility of outsourcing its integrated logistic services which includes receiptand despatch services, warehousing of commercial supply items and “DOPE” items,vendor and customer consignment stocks, handling and storage of customer owned parts(COP) and the logistic functions of Component Movement Control (CMC) to a 3 rd partylogistics service provider.1.2. PurposeThe purpose of this Request for Quotation (RFQ) is to seek quotes and proposal fromLogistics Service Providers (LSP) to provide an integrated logistic services, inclusive butnot limited to functions such as receipt, despatch of items, handling and storage,planning and replenishment of SIAEC, customer owned parts (COP) and vendorconsignment parts, managing Component Movement Control (CMC) as well aswarehouse management on a 24 by 7 basis.1.3. Overall Project TimetableThe timetable for the proposal process and SIAEC’s preferred project completion datesare outlined below:S/N Events Duration1 Issue Open Tender to bidders 30th Feb 20082 Bidders lodge proposals Closing 28th Mar 20083 Evaluation of Bids, including any presentations 28th Mar - 28th Apr 200845Selection of final shortlist of Preferred Bidders.MC approval on outsourcing program & costFinal negotiations with Preferred Biddersincluding contract documentation negotiations.30th Apr 200830th Apr - 16th May 20086 STC Approval and Award of contract 21st May 20087 Scoping of Works 22nd May - 31st July 20088 Commencement of Program 1st Aug 2008COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20083-182. INFORMATION ON SIAEC CURRENT SUPPLY CHAIN SUPPORTSTRUCTURE2.1 Current Supply Chain Support Arrangements.1 ReceiptReceipt management is performed in-house. SIAEC’s in-house Quality Division performsstore/acceptance inspections of SIAEC, Customer Owned items and vendor/customerconsignment items. Items are then issued to the user or sent to warehouse for storage..2 DespatchDespatch management is performed in-house instructions furnished in the form ofSIAEC’s Despatch section performs despatch of parts (including packing) based onInstruction to Despatch (ITD) and Repair Orders (RO). SIAEC’s Despatch will prepare thenecessary shipping documents and coordinate with the appointed freight forwarder forshipments..3 Customer Owned Parts (COP)Customer Owned Parts (COP) management is performed in-house. SIAEC’s COP Storeperforms receiving in, storage and issuing functions for the COP parts. An inventory cyclecount is also carried out on monthly basis..4 DOPE ItemsDOPE items are hazardous materials that are used directly or indirectly on the aircraft.DOPE items are received through the receipt process for DOPE items performed in –house.Quality Division performs store/acceptance inspections of these items. Items are thenissued to the user or move to the various storage locations depending on the storagecondition needed for the items (i.e. dope store, acid store, cold room, freezer, paint store,explosives, etc). DOPE store is currently supported and managed by SIA EngineeringSupplies..5 Commercial Items and ConsumablesSIAEC performs good receipts of commercial items and consumables for SIAEC-owneditems, customer items and vendor consignment items. SIAEC’s in-house Quality Divisionthen performs store/acceptance inspections. SIAEC receipt will either issue items directlyto the user or sent them to warehouse for storage. The storage of the consumables andcommercial items are currently supported and managed by SIA Engineering Supplies..6 Component Movement Control (CMC)Component Movement Control (CMC) is performed in-house. SIAEC’s CMC Storeperforms receiving in of unserviceable components from users in Line MaintenanceDivision, Base Maintenance Division and various customers’ overseas warehouses.SIAEC’s CMC will at point of receipt inspect components for any physical damage,process all necessary documentation and ensure that certain criterions are metbefore acceptance from the various sources. Segregation of the receivedcomponents is maintained at all times. Upon advice from the Repair Section, CMCwill move the components to the appointed locations for dispatch.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20084-18Current StorelocationReceipt Store(ISQ Building)Despatch Store(Outhouse Building)Size offacility204.00 m 2 +188.00 m 2(yard area)Average Daily Activity440 Receipt line-items perday (Mon-Sat)160 Receipt line-items perday items (Sunday)122.00 m 2 50 Despatch line-items perday (Mon – Sat)10 Despatch line-items(Sunday)Key Performance Indicator(KPI)AOG - Complete 100% ofReceipt items in 2 hours anddelivered to the user.Normal - Complete 90% ofReceipt items in 24 hours.AOG - Complete 100% ofDespatch items in 2 hours.Normal - Complete 90% ofDespatch items in 24 hours.COP Store(inside Hangar 2)DOPE Store(ISQ Building – 2 ndFloor)Consumable Store(ALH Building)CMC Store(Outhouse Building)357.09 m 2 60 Collections and Issues ofline items per day (Mon –Sat)10 Collections and Issues ofline items per day (Sunday)357.09 m 2 60 Receipt and Binning(Mon – Sat)60 Collections and Issues(Mon – Sat)10 Collections and Issues(Sunday)4243.483m 3 440 Receipt and Binning(Mon – Sat)160 Receipt and Binning(Mon – Sat)220 Collections and Issues(Mon – Sat)110 Collections and Issues(Sunday)60.00 m 2 30 Receipt items (Mon – Fri)70 Receipt items (Peakperiods)AOG - Complete 100% ofCollections and Issues itemsin 2 hours.Normal - Complete 90% ofCollections and Issues itemsin 24 hours.AOG - Complete 100% ofCollections and Issues itemsin 2 hours.Normal - Complete 90% ofCollections and Issues itemsin 24 hours.Note: DOPE store consist ofFreezer room, Cold room,Acid store and require permit/ license from SCDF).AOG - Complete 100% ofCollections and Issues itemsin 2 hours.Normal - Complete 90% ofCollections and Issues itemsin 24 hours.Note:- Including storage ofExplosive Class 1.4S and1.4C storage- Including replenishment ofstocks to operational storagesitesComplete 100% of Dispatchof unserviceable componentswithin 24 hours of Receipt.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20085-183. TENDER ASSUMPTIONS AND REQUIREMENTS3.1. GeneralBidders must prepare their bids based on the requirements set out in this RFP. Biddersare encouraged to propose services that are not requested in this document if theyprovide value-add to SIAEC’s businesses.3.2. GrowthDue to the rapid growth of the MRO business, bidders must be able to clearlydemonstrate in their proposal that they are able to support SIAEC’s future growth. Thebidder must also provide a differentiated pricing model associated with this businessexpansion.3.3 Definition“Materials” is collectively defined as, but not limited to, Aircraft Spares, Non AircraftSpares, Components, Tooling or Equipment.AWB is Airway billB2B is Business-to-Business PortalDN is Delivery NoteDO is Delivery OrderGR is Goods ReceivedARC is Authorized Release CertificateCOC is Certificate of ConformanceCOP is Customer Owned PartsPO is Purchase OrderRO is Repair OrderITD is Instructions To ShipALH is SIA Airline HouseDOPE is the store for chemical, dangerous goods, acid items, cold room items andfreezer items3.4 Terms of ContractBidders should include pricing proposals for each of the following proposed contractterm options:COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20086-18• 3 years• 5 years3.5 Outsourcing SIAEC Integrated Logistic RequirementsLSP are to meet the RFQ requested as per the proposed model of operation in AppendixA. However should LSP have a more cost effective and efficient model, please provideas an additional proposal and quote.Receipt operation includes:1. Receiving items from freight forwarder of SIAEC aircraft and non-aircraft parts,vendor/customer consignment parts, customer owned parts, items for repairs or afterrepairs inclusive of but not limited to dangerous goods, chemicals, explosives etcthrough an external warehouse (estimate area required: 10,000sqft)2. Un-stuffing3. Receipt inspection.4. Quality Inspection (requirement for LSP to have staff appointed as Stores Inspectorupon approval given by SIAEC Quality Management)5. Moving items from point to point within ALH and Line Maintenance6. Data Entry and system update7. Filing of documentsKPI:AOG - To complete Receipt items 100% of the time in 2 hours (inclusive ofIssuance if required by user on AOG basis)Normal - To complete Receipt items 90% of the time in 24 hoursDespatch of items includes:1. Receiving items from requestor or to collect items from various storage locations2. Packing of items inclusive but not limited to dangerous goods, chemicals, explosivesetc. Personnel who handles dangerous goods must go through the IATA approveddangerous goods regulation course and qualified.3. Data entry and system update4. Filing of documentsKPI:AOG - To complete Repacking items 100% of the time in 2 hoursNormal - To complete Repacking items 90% of the time in 24 hoursIssue items includes:1. Collect requisition from requestor2. Verify items and request from requestor tally3. Issue items to requestor4. Data Entry and system update5. Filing of documentsKPI:AOG - To complete Issue 100% of the time in 2 hoursNormal - To complete Issue 90% of the time in 24 hoursScrap and Mutilation:1. Collection of parts and documents for scrap2. Ensure secure storage of items for scrapCOMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20087-183. To carry out mutilation process if applicable4. Handle disposal process with SIAEC appointed vendor5. Data entry and system update.6. Filing of documentsKPI:Normal - To complete Scrap and Mutilation process100% within 1 dayChemical and Dope items – receiving, handling, storage, issuance and scrap:1. To store the above items in the approved warehouse for DOPE items including coldroom and freezer storage.2. To carry out shelf-life monitoring3. To carry out inventory planning for replenishment of stocks4. To ensure warehouse complies to all mandatory and SIAEC regulations and laws5. To carry out scrap process for expired items6. Personnel who handle such storage must be trained and qualified.7. Data entry and system update.8. Filing of documentsKPI:Receiving:Normal - To complete 100% receiving and storage within 4 hoursIssuing:Normal - To complete 100% issuing and update of inventory within 4 hoursWarehouse Management–COP store and Consumable store:1. To ensure warehouse storage conditions are met as per Refer to Appendix B withinthe external warehouse.2. Credit of items from receipt, excess return items and serviceable after repair items3. Issuance of items from stores4. Ensure safety of items in storage and integrity of inventory against SIAEC’sintegrated system5. To plan and replenish fast turnaround low value items at users stock area.6. Data entry and system update.7. Filing of documentsKPI:Storage Condition:Normal – Not more than 1 failure per monthCredit In:Normal – To complete 90% of credit in within 24 hoursIssuance:AOG – To have 100% items ready for issue within 0.5 hour of request.Normal – To have 90% of items ready for issue within 2 hours of request.Component Movement Control (CMC) Warehouse Management operations include:1. Receipt of unserviceable components2. Physical check and verification of received units3. Proper handing/taking over procedures4. Duplication of accompanying documents for recording purposes. To be handed overto Repair Section.5. Movement of items from point to point within ALH the Company premises.6. Data Entry and system update.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20088-187. Filing of documentsKPI:Normal - Complete 100% of Dispatch of unserviceable components within 24 hours ofReceipt.The proposed model as per Appendix A in summary: -a. LSP to provide an external warehouse whereby it will be the point of receipt forSIAEC, customer and vendor consigned spares. Quality Inspection will be carried outat the external warehouse including all system updates via interface.b. Non-immediate required spares will be stored in the external warehouse under a“bonded” area as specified by regulatory body.c. Items that are found to be discrepant will be segregated and stored in a controlleddiscrepant storage.d. Dope items will be moved to be stored in dope store in ALH as per dope facility.e. Customer owned parts after inspection will be move to COP store unless it is toobulky whereby it will be stored in external warehouse until required.f. Upon requirement of SIAEC, customer or vendor consign parts; the item will betransferred to ISQ (Transit) store for issuance or collection.g. LSP could also plan and provision storage of critical spares in either ISQ or ForwardStore for AOG requirements.h. For fast moving and low cost consumables required by Base Maintenance (BM), LSPshould provide a replenishment system in sub-store in the hangar. Items could bedispensed or issued.i. LSP should cater for an external warehouse for slow moving items but this would beconsidered as “supplemental”j. Items to be dispatch but not in external warehouse and CMC items will be collectedfrom ISQ and transported to external warehouse for re-packing and dispatch.k. LSP to provide transportation between external warehouse to ALH and all sub-stores.This should be included in the “basic” package.l. LSP should take note that items moving from external into ALH would need to bescreened in Super-Hub AFT3 and be escorted into ALH. Screening is catered from0900hrs until 1630hrs. Anything beyond these hours will be under ad-hoc and willrequire longer period.Operating of goods handling equipment and goods vehicle:LSP is to provide own goods handling equipment and vehicle for use for the scope of thework above:1. Goods Handling EquipmentLSP to provide own goods handling equipment and ensure handling equipment isalways maintained in good condition. Forklift drivers are to be trained and accreditedby approved Ministry of Manpower training centers and CAAS forklift drivingpermit. LSP shall ensure sufficient all-party insurance coverage.2. VehicleLSP are to provide own vehicles to transport items from location to location. LSP areto ensure vehicles are always maintained in good condition. LSP would have to seekapproval from SIAEC Safety and Security division of handling of vehicle withinSIAEC facilities. LSP shall ensure sufficient all-party insurance coverage and possesa valid Class 3 driving license and CAAS driving permit.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 20089-18Manpower:1. LSP may supply foreign nationals however documentary evidence need to beproduced to show such approval by the MOM. All foreign workers must be inpossession of valid work permits approved by the Ministry of Manpower (MOM).3. LSP shall replace workers, in the opinion of SIAEC, if they are found unsuitable,incompetent, negligent, or not performing their duties satisfactorily. This must becarried out immediately upon notification, failing which, the services performed bythe rejected workers will not be accepted and pro-rata deduction will be made on theinvoices.4. The workers employed must not have any criminal records or convicted of any drugoffences.5. LSP are to manage sufficient staffing including absences due to reservist, anydisciplinary matters, safety and security of its’ manpower subject to SIAEC policyand regulation if applicable.6. LSP are allow its’ manpower to be actively involved and participate in any ofSIAECs’ improvement and development programs. LSP shall bear the cost of any ofsuch programs.7. The Contractor must apply for the CAAS access passes for its workers. SIAEC willsponsor such applications, but shall limit the sponsorship to only a reasonablenumber of workers, determined at its own discretion. The Contractor must surrenderthe passes to CAAS if the approved workers are no longer under its employment.Safety:1. The Contractor must provide and maintain the necessary safety equipment for itsworkers in accordance with the Factory Act. Safety equipment shall include itemssuch as eye goggles, gloves, caps, dust masks, safety harness, raincoats, safety vestsand safety shoes.2. The Contractor must observe and comply with all present and future safety laws andregulations, and must bear all costs associated with such compliance.Audits:1. LSP to provide cooperation to meet auditors or audit requirements as per SIAECaudit programs.2. LSP shall ensure audit findings and countermeasures are replied, resolved andimplemented in timely manner. Responses to audit finding to be provided within 2weeks of audit report.3.6 Reports and FrequencyThe LSP shall provide regular reports at their respective frequencies to SIAEC. Some ofthe required reports are as follows:No. Report Name Frequency Description of Report1. Receipt Reporting Weekly Report to provide visibility of total number ofincoming receipts and the fulfillment rate andtheir respective fulfillment cycle time. Detailedreasons to be provided for all cases of nonfulfillment.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 200810-182. Despatch Reporting Weekly Report to provide visibility of total number ofoutgoing dispatches and the fulfillment rate andtheir respective fulfillment cycle time. Detailedreasons to be provided for all cases of nonfulfillment.3 COP Management& ReportingMonthly1) Stock reporting.2) KPI on Receipt/ Issue to binning of stock.3) Aging/shelf life expiry reporting of parts instock.4) Stock count.4 Export and Import Monthly Export and Import shipment, AWB, DN,Freight charges, Consignee List of Discrepancystatus reporting for supplier performanceassessment.5 CMC Status Report Daily Report to provide current status of all partsreceived into CMC. Data should be inclusivebut not limited to PN, SN, AWB if applicable,PO/RO/RFO and current location of units.6CMC FulfillmentReportWeeklyReport to provide visibility of total number ofcomponents received and the fulfillment rateand their respective fulfillment cycle time.Detailed reasons to be provided for all cases ofnon-fulfillment.3.7 IT Requirements and Deliverables.1 The bidder is expected to be able to provide interface between its IT systems withSIAEC’s IT systems. If cost of IT integration is payable by SIAEC, the biddermust clearly state and provide a breakdown on the costs in their proposal..2 SIAEC is currently using integrated SAP systems to manage its entire MROoperations covering purchasing, warehousing, repair management, loans andbillings and invoicing. In addition, SIAEC uses a B2B portal for its InventoryTechnical Management (ITM) business.3.8 Pricing.3 Additional information on system requirements is provided in Appendix C..4 The bidder must be able to provide real-time multi-site inventory visibility toSIAEC personnel.The bidder shall submit a pricing proposal with explanation of the methodology used tocompute the proposed charges. Pricing should be indicated as Basic, Optional orSupplemental as per in table in Appendix D. The bidder shall also provide a clearbreakdown of the proposed charges into one-time set-up or recurrent charge on thefollowing areas:.1 WarehousingCOMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 200812-18contract period. The policy shall contain a cross liability clause including a waiverof the insurer's right of subrogation in favour of SIA, SIAEC and its subsidiaries asfollows: -Each of the parties comprising the Insured shall for the purpose of this section beconsidered as a separate and distinct unit and the words "the Insured" shall beconsidered as applying to each party in the same manner as if a separate policy hadbeen issued to each of the said parties and the Insurers hereby agree to waive allrights of subrogation or action which they may have or acquire against any of theaforesaid parties arising out of any accident in respect of which any claim is madehereunder provided nevertheless that nothing in this clause shall be deemed toincrease the Limits of Liability in respect of any one occurrence or series ofoccurrences as stated in the Schedule..2) The successful bidder's All Risks Insurance Policy for a sum based on: -a) The full value of work executed by the successful bidder from time to time;andb) The full value of all materials, equipment and other things brought on to thesite by the successful bidder..3) A Transit All Risks Insurance Policy covering loss or damage to materials,equipment and other things which are transported from the premises of thesuccessful bidder or other suppliers or from SIAEC's premises in Changi Airport tothe site..4) Workmen's Compensation and Employers' Liability Insurance Policiesindemnifying SIAEC and the successful bidder against: -a) All liabilities arising out of claims by any and every workman or employeein and for the performance of this work;b) All liabilities for payment of compensation under common law and/orstatute;c) All liabilities for payment of all costs and expenses incidental orconsequential thereto; andd) The policies shall contain Endorsements A and B as follows: -ENDORSEMENT A“It is hereby understood and agreed that in the event of any workmen employed bythe within insured or by the Insured's Contractors as referred to in Endorsement Bherein or any dependant of such workman bringing or making a claim under theWorkmen's Compensation Legislation in force in Singapore against SingaporeAirlines Ltd, its subsidiaries, their subsidiaries and Associated Companies (SIA) orany of his agents or employees for personal injury or disease sustained whilst atwork on any contract covered by the terms and conditions of the within policyCOMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 200814-18.2 The bidder shall also provide a clear project implementation strategy and schedulein order to meet the timelines mentioned in Paragraph 1.3.1.3.14 Performance Targets.1 At all times during the performance of the services, LSP shall, meet specific targetsand adhere to the requirements as set out in Appendix E (“Key PerformanceIndicators”)..2 At the end of each calendar month, LSP shall submit to SIAEC a comprehensivereport on its performance measured against each of the Key Performance Indicator..3 Failure to meet targeted levels of performance may subject LSP to payment rebates.Failure to meet minimum levels of performance as specified in Appendix E shall bedeemed to be a breach of the agreement and will constitute an event of Default (as definedin Clause 3.13.1)..4 SIAEC shall notify LSP upon occurrence of such Default and give LSP a period of one (1)month to cure the Default..5 Should LSP fail to cure the Default to the satisfaction of SAEC within the period of one (1)month from the notification of the Default, and SIAEC has not exercised its operationalrecovery intervention rights, SIAEC shall then terminate the Agreement upon the issuanceof 14 (fourteen) days notice to LSP..6 If SIAEC elects to exercise its operational recovery intervention rights, LSP shall extendall necessary support to enable SIAEC to help LSP to cure the Default and resumeperformance of Services within a period of one (1) month from the notification of theDefault. If the Default has not been cured by the end of this period, SIAEC may terminatethe Agreement and appoint a new project management organization..7 The exercise of any operational recovery intervention rights under Clause 3.13.7 shall notdischarge any of LSP obligations under this Agreement or preclude SIAEC fromexercising, or prejudice the ability of SIAEC to exercise, any of the other rights orremedies available to SIAEC, including but not limited to those available at law and thoseexpressly provided under this Agreement. LSP shall provide all data and project materialsto the new project management organization designated by SIAEC.3.15 Other RequirementsIn addition to the requirements set out above, your proposal must include the followinginformation:.1 Preferred duration of the proposed contract (please take into account item 3.3above).2 If cost/price reviews are anticipated during any of the two (2) proposed terms forthe contract (as set out in item 3.3 above), when these are to occur and whatmechanism is to apply to restrict/limit increases.3 Response times for spares availability (including any relevant warranties)COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 200815-18.4 Other terms and conditions.5 Contact details for the clarification of Proposals. Name of contact person, address,and telephone and facsimile numbers in case there are any issues associated withthe proposal that requires clarification through the evaluation process..6 LSP should also provide in the proposal a yearly review plan showing plans to workcohesively with SIAEC on the following: -- Yearly plans and programs improvement on operational efficiency andquality leading to mutual cost sharing benefits- SIAEC’s own initiatives on improvement on efficiency of operations and newrequirements in all aspects i.e. new business developments, quality programs,safety programs etc.3.16 Lodgement Process.1 If there is a request for further information, not detailed in this document, acompleted and signed Confidentiality and Non Disclosure Agreement will berequired by SIAEC..2 Bids must be marked “Logistics Services” and be lodged at SIAEC by no later than12.00noon on 28 March 2008. Proposals should be sent to:Ms. Cheok Lay Ngorc/o The Secretary, Tenders CommitteeSIA Engineering Company LimitedThe General Office2 nd Floor, Ground Support Equipment Maintenance65 Airport Cargo RoadSingapore 819457.3 Bidders must submit an original plus three clearly marked copies and a CD-ROMsoftcopy. Bids must not be sent by facsimile or electronic mail transmission.3.17 Status of Request for ProposalThis document is intended as a guide to bidders only and does not create any bindingobligations upon SIAEC (other than pursuant to item 3.20 below) or bidders (other thanpursuant to item 3.20 and 3.22 below). SIAEC reserves the right to accept or rejectproposals in its absolute discretion.3.18 Status of ProposalSubject to item 3.18 below, Proposals must be submitted on the basis that they arebinding offers, capable of acceptance by SIAEC.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 200816-183.19 Withdrawal of Binding BidsAt anytime after the closing date a Bidder may advise SIAEC in writing that it wishes towithdraw its Binding Bid. At this point SIAEC will not assess or consider the Bidder’sBinding Bid any further.3.20 Evaluation of ProposalsSIAEC may appoint advisors to assist in the evaluation of proposals submitted3.21 Confidentiality.1 SIAEC will treat proposals as confidential but may disclose details of proposals toits advisors appointed for the purpose of evaluating proposals..2 The information provided in this RFP must be treated as confidential and may notbe disclosed to a 3 rd party without the prior permission of SIAEC.3.22 Clarification of Binding BidsDuring the course of its evaluation, SIAEC or its appointed advisers may ask for furtherinformation from a bidder or require a bidder to clarify any ambiguity contained in itsBinding Bid. Bidders must reply promptly to any such request3.23 Responsibility of Bid CostsSIAEC notes that should a bidder prepare a Binding Bid, SIAEC has no responsibilityfor the payment of any costs associated with the preparation of these documents, andsubsequent tender activities undertaken by any Bidder3.24 Concerns about the Bid ProcessA Bidder will have no right to appeal against, or to take legal proceeding, in respect ofany decision by SIAEC in relation to this project, including, without limitation,evaluating a detailed proposal, appointing a Preferred Bidder, agreeing to the wording ofthe Project Documents or concluding the bid process.3.25 Evaluation CriteriaCriteria used to evaluate the bids will include but not limited to the following.1 Total cost of program to SIAEC.2 Ability to meet the requirements spelt out in this document.3 Ability to support the growth of SIAEC’s MRO business.4 Minimization of risks to SIAEC.5 Financial strength, reputation and management expertise of the bidder.6 Other specific advantages and value-add services offered.COMMERCIAL-IN-CONFIDENCE

Request for Quotation – Integrated Logistics ServicesFebruary 200817-183.26 CommunicationsPoint of contact within SIAEC is:Raymond WiExecutive Fleet ManagementTel : (65) 65481119raymond_wi@singaporeair.com.sgCOMMERCIAL-IN-CONFIDENCE