KARNATAKA HANDLOOM DEVELOPMENT CORPORATION

LTD
GOVERNMEMT OF KARNATAKA

CUSTOMIZED SOFTWARE FOR BACKEND OPERATIONS AND FRONT END OPERATIONS

OF KHDCLTD
(THROUGH e-Procurement ONLY)

CUSTOMIZED SOFTWARE FOR AUTOMATING BACKEND OPERATIONS OF KHDC

AND LINKING UP WITH CUSTOMIZED SOFTWARE OF FRONT END OPERATIONS
OF KHDC LTD
PRIYADARSHINI NEKARA BHAVANA, VIDYA NAGAR, HUBLI-580 031
REGIONAL OFFICE: NO.1, TANK ROAD, PRIYADARSHINI COMMERCIAL
COMPLEX, HALASURU, BANGALORE 560 042
WEBSITE: http://KHDCLTD.COM

Document version control

English

Name of Document
Author
Authorized Officer
Description of Content:

Functional Requirements Specification for

KHDC
KHDC LTD
MD, KHDC
Functional specification for Development of
Integrated software for KHDC and
implementation of the software

Approved/Vetted by:

MD, KHDC

Invitation for Competitive bidding

Karnataka Handloom Development Corporation Limited. (hereinafter referred as KHDC),

is a Government company registered under Companies Act, 1956 for the purpose of dealing
with the most vital input 'Handloom' for the benefit of the weavers of the State.
The Corporation invites proposals from interested bidders capable in development of
integrated software for KHDC and its implementation which should be an enterprise wide
solution, which integrate and optimize all the functions of the KHDC. Complete set of tender
documents are available for download, by interested bidders, from the said e-Procurement portal of
the Government of Karnataka.
Time schedule of various tender related events:

Tender reference No:

Date of issue of RFP
Pre-bid meeting & venue

Last Date for Receiving Queries

Last Date and Time for submission of Bids
Date and Time of Opening of Technical Bid
Date and Time of Opening of Commercial Bid
EMD
Contact Person
Address for Communication

KHDC/MD/COMP/2013-14/
26.02.2014
05.03.2014 at 11.30 am
Regional Office: No.1, Tank Road,
Priyadarshini Commercial Complex,
Halasuru, Bangalore 560 042
10.03.2014 up to 11.00 am
12.03.2014 up to 3.00 pm
14.03.2014 at 3.30 pm
15.03.2014 at 11.30 am (Tentative)
Rs 400000.00
Sri B.Gajendra
Administrative Officer
Mobile- 9900017249
Karnataka Handloom Development
Corporation LTD
(A Govt. of Karnataka Undertaking)
Head Office: Priyadarshini Nekara
Bhavana,Vidya Nagar, Hubli-580 031
Regional Office: No.1, Tank Road,
Priyadarshini Commercial Complex,
Halasuru, Bangalore 560 042
Website:khdcltd.com

The Bidders shall submit an electronic copy of performance bank guarantee, project plan,
invoices etc. online in the e-procurement platform. The bidders shall have provision to view
the status of the invoices of for all contracts handled online. Selected bidder has to pay
transaction fees for using e-procurement platform to handle post tendering activities. Refer to
the e-procurement platform for details.

For further information/clarifications, you may call the contact person or visit the website
www.eproc.karnataka.gov.in
Bidders Registration Process e-Procurement Portal
E-Procument is centralized unique platform for the departments to publish the tenders and bidders to
submit the bid online at e-procurement website URL: https://eproc.karnataka.gov.in
Prerequisites to register on e-Procurement Portal:
The bidders have to register (One time registration) on e-procurement portal to submit the bids for the
tenders. The bidders once registered can participate in any of the department tenders. The registration
should be renewed on every year by paying Rs.100/-.
The following are the prerequisites required to register:
Step 1: Procure Digital Signature Certificate
DSC Vendor Details:
Sl.No.

DSC Vendor Name

Contact Person

01
02
03

MTNL
TCS
Safescript

Mr. Bipin kumar

Mr. Viral Dawood
Mr.Nachiketa Mohapatra

04

Ncode Solutions

Nagaraj/Ravikumar R

05
3 I Infotech
DSC Cost Details:

Sylvia Blanche

Office Landline
NO.
41520966
22372226
66183135
/
66183127
25272525
/
25213521
42275300

Mobile No.
9449855518
9972932213
9900807235
9972247696
42275301

A Class III Digital Signature Certificated will range between Rs.1500 to Rs.4500 depending on
the vendor and the level of support provided by the vendor.
The registration charges paybleto Government of Karnataka is Rs.500/- only.
Step 2: Government of Karnataka has a standard format of Affidavit/Power attorney
which has to be notarized.
Individuals
Company
Affidavit on Rs.20/stamp
POA on Rs.100/- Stamp Paper
DSC key holder should be the power receiving Authority in POA.
Logging onto the link below the format for POA/Affidavit can be downloaded:
https://www.eproc.karnataka.gov.in/eportal/downloadTemplates.seam
Step 3: Pan Card Number Required
Individuals
Individuals Pan Card No.

Company
Company Pan Card no.

Step 4:

Back Details like: Bank name, Bank a/c no., Bank Branch, IFSC and so on required.

Step 5:

Two valid and active email ids to receive the communication like User id, passward
and tenders published.

Step 6:

Registration fee of Rs.500/- can be paid in the following four modes of payment:
1.

Credit Card

ii.

Direct Debit

1.

NEFT

iv.

OTC (Remittance at the Bank Counter

- Only Axis Bank)

Details of mode of payment are given in e-payment system of e-procurement system
Axis Bank Branch details can be downloaded from :
https://www.eproc.karnataka.gov.in/documents/Axis _bank_branch_list.zip
Registration Approval:
Please call 94800 51498 ( Call only if registration approval is pending for morethan 1 working day)
Please cal 9480051519 for EMD Refund once the online instruction is given by the department.
Training Details:
A fee Training schedule is organized by Centre for e-Governance on all GOK Working Saturday.
Please register your names / name of the company with e-procurement helpdesk on below mentioned
contact nos. to attend the training.
User guides can be downloaded from the link:
https://www.eproc.karnataka.gov.in/documents/Supplier Registration User Guidev 701122008.doc
Training Date

Training Venue

Batches

On all Govt. of Karnataka

working Satudays

Training room no.1,, Gate

No.2, M S Building,
Bangalore-01

10:30 am to

02:30 pm to

Helpdesk Details:
For further clarifications, please call e-procurement Helpdesk on 080-25501216 / 25501227
(Timings: 9:00 am to 9:00 pm from Monday to Saturday) take support on Kannada and English or
Mail to Helpdesk:hphelpdesk.blr@intarvo.com

Kindly note that, KHDC, e-procurement portal or other agency are not responsible for any unforeseen
problems, possible technical glitches, causing delay in submission of their proposal before the due
date. Hence, applicants are requested to upload their proposal three days before the proposal

submission due date to avoid technical or other problems.

E-Payment System of E-Procurement System

1. Payment of Tender Processing fee and EMD through any of the following modes of epayment as specified in the e-Procurement platform.

a. Credit Card
b. Direct Debit
c. NEFT / RTGS
d. Over-the-Counter (OTC)

1.1

Credit Card
The Credit card payment is routed through a payment gateway and prompts the bidder for
entry of relevant credit card details. The confirmation of payment is displayed on the screen
leading to bidding screen with a green tick against the payment.

1.2

Direct Debit
The direct debit payment is only for Axis Bank account holders and the payment routed
through Axis Bank internet payment gateway. The gateway prompts the bidder for entry of
relevant debit card / bank account details. The confirmation of payment is displayed on the
screen leading to bidding screen with a green tick against the payment.

1.3

NEFT / RTGS
The National Electric Fund Transfer (NEFT) / Real Time Gross Settlement (RTGS) mode of
e-payment involves printing a challan from the e-procurement system. On selection of the
NEFT / RTGS in the e-procurement platform, the bidder needs to select the refund account
prior to click of Pay button. The next screen provides a link to download the challan. The
challan contains the
Beneficiary name, beneficiary account NO., beneficiary IFSC code, beneficiary bank branch
and city. The challan need to be furnished to the sending bank to facilitate transfer of money.
The NEFT challan generates dynamic bank account no. which varies with every bidder and
tender. Hence, the bidders shall not use the same NEFT challan for multiple payments.
On receipt of transaction number form the sending bank, the same need to enter in the eProcurement platform along with the date of payment against the specific NEFT / RTGS
payment transaction. The NEFT / RTGS mode of e-Payment is a deferred mode of e-payment

as the same is reconciled in the next two working days after upload of payment scroll in the eProcurement system. Bidders may submit their bids after updated of transaction number in the
e-Procurement system. A green tick mark appears against the payment after update of
transactions number and date of payment. However, the payments are reconciled after
payment records are updated by the bank.
1.4

Over-the-Counter (OTC)

The Over-the-Counter (OTC) mode of e-payment involvers printing a challan from the eProcurement system.. On selection of the OTC mode in the e-Procurement Platform, the
bidder needs to select the refund account prior to click of Pay button. The next screen
provides a link to download the challan. The challan contains the beneficiary name in favour
of which either cash (upto Rs.50,000) or Deman Draft can be submitted in any of designated
branches of Axis Bank throughout the State of Karnataka and country. All payments less that
Rs.50,000/- are accepted in cash form for OTC mode of payments and all payments of
Rs.50,000/- and above are accepted in the form of Demand Draft.
On receipt of transaction number from the sending bank, the same need to enter in the eProcurement platform along with the dated of payment against the specific OTC payment
transaction. The OTC mode of e-payment is deferred mode of e-payment as the same is
reconciled in the next two working days after upload of payment scroll in the e-procurement
system. Bidders may submit their bids after updated of transaction number in the eProcurement system. A green tick mark appears against the payment after update of
transaction number and date of payment. However, the payments are reconciled after payment
records are updated by the bank.
2.

Important Note
In the case of payments made through NEFT / RTS or OTC, the bidder needs to print
a challan from the e-Procurement platform prior to actual payment. On obtaining the bank
transaction number, the same need to be updated in the e-Procurement platform along with
the date of payment. A green tick icon appears against the payment in the e-Procurement
platform, though the status of the payment shows Verification pending. The payment is
reconciled subsequently on upload of payment scroll in the e-Procurement system and the
status verification pending will subsequently be changed to verification successful.
With regard to payment through NEFT / RTGS, the bidder is advised to initiated payment well in
advance to avoid the risks as mentioned below:

a.

Payments credited after the due date and time of submission as prescribed in the tender
notification.

b.

Payment returning bank to the bidders account due to incorrect entry of beneficiary
account no. and / or beneficiary account name by the sending bank at the time of transfer.

c.

Please ensure that the payments are credited within the last date and time of receipt of
tenders. Bidders crediting payments after the due date and time of submission as

prescribed in the tender notification will not be eligible to participate in the tender.
d.

Please instruct the sending bank to enter the correct bank account, IFSC code and
beneficiary name, as mentioned in the NEFT / RTGS challan generated from the eProcurement platform, while transferring amount through NEFT / RTGS. Any mistake in
the entry of above information will result in amount returning bank to sender and
subsequent ineligibility of the bidder to participate in the tender.

Contents
Invitation for Competitive bidding........................................................................................................3
Contents.................................................................................................................................................8
Prequalification Criteria.......................................................................................................................12
* Conditions for Experience ...........................................................................................................14
Bidders engaged in fraudulent practices..........................................................................................14
Salient Points:..................................................................................................................................15
ABOUT KHDC...................................................................................................................................16
AS IS Study.....................................................................................................................................16
Current Issues & Challenges............................................................................................................17
Objective of the RFP........................................................................................................................18
Audience.........................................................................................................................................18
Purpose of the RFP..........................................................................................................................19
Copyrights.......................................................................................................................................20
Scope of Work.................................................................................................................................20
Overview of the scope of work .......................................................................................................20
Application Software Development ....................................................................................................21
A.Performing System Requirement Study ......................................................................................22
B.Developing Solution Design ........................................................................................................23
C.Performing Software Development/ Customization/ Configuration ............................................25
D.Developing MIS ..........................................................................................................................28
E.Performing Software Testing .......................................................................................................29
1.Preparing documentation .........................................................................................................31
2.Developing Automated Reconciliation Modules (Physical and cycle counting).......................32
3.Conducting Pilot ......................................................................................................................33
4.Defining Ownership and Licenses ...........................................................................................33
5.Migration of current services along with data to the new system .............................................33
Training ..............................................................................................................................................46

SLA Monitoring .................................................................................................................................48

Coverage & Duration of the Project ....................................................................................................49
Implementation Approach & Plan ......................................................................................................50
Project Implementation Plan ...........................................................................................................50
Business model ...........................................................................................................................50
Team structure and composition .........................................................................................................53
Stakeholders, Roles & Responsibilities...............................................................................................57
Responsibilities of SI...........................................................................................................................59
System Overview and System Requirements.......................................................................................61
Architecture Constraints .....................................................................................................................65
Relevant Technology ......................................................................................................................66
Quality Attributes ...........................................................................................................................66
Critical Requirements .........................................................................................................................76
Design Issues ......................................................................................................................................77
Security Requirements.........................................................................................................................79
Operational Requirements...................................................................................................................83
TECHNICAL DESIGN & ARCHITECTURE....................................................................................86
APPROVAL OF DELIVERABLES....................................................................................................87
SOLUTION MAINTENANCE...........................................................................................................87
TRAINING OF SYSTEM ADMINISTRATION SERVICES.............................................................89
Project Bidding & Implementation Schedule ......................................................................................91
Project Deliverables, Timelines & Payment Schedule ........................................................................93
Payment Schedule ...............................................................................................................................99
Bid Details Terms and Conditions .............................................................................................101
Instructions to Bidder ................................................................................................................101
Evaluation of Commercial proposals ............................................................................................124
Negotiations, Contract Finalization and Award ........................................................................124
Award of Contract ........................................................................................................................125
General Conditions of Contract.........................................................................................................127
Definitions ....................................................................................................................................127
Deviations .....................................................................................................................................129
Use of Contract documents and information .................................................................................131
Liquidated Damages .....................................................................................................................132
Confidentiality and Termination Rule ...........................................................................................132
Force Majeure ...............................................................................................................................133
Contract Amendment ....................................................................................................................135

Applicable Law .............................................................................................................................135

Assigning of Tender Whole or in Part.........................................................................................136
Subcontracting...............................................................................................................................136
Resolution of Disputes...................................................................................................................136
Change Control Schedule..............................................................................................................136
Exit Management ..........................................................................................................................139
Transfer of Assets .........................................................................................................................140
Cooperation and Provision of Information ....................................................................................141
Confidential Information, Security and Data ................................................................................142
Employees ....................................................................................................................................142
Transfer of certain agreements ......................................................................................................143
Right of Access to Premises ..........................................................................................................143
General Obligations of the System Integrator ...............................................................................144
Exit Management Plan ..................................................................................................................144
Insurance Requirement .................................................................................................................145
Notices ..........................................................................................................................................146
Software Licenses..........................................................................................................................146
Intellectual Property of the Application Software..........................................................................146
Obligations of the selected agency(s) ............................................................................................147
Inspection & Test ..........................................................................................................................148
Warranty .......................................................................................................................................148
Delivery & Documents..................................................................................................................150
Third Party Claims.........................................................................................................................150
Ownership of Equipments..............................................................................................................150
Prevention of Corrupt or Fraudulent Practices ..............................................................................151
Interpretation of Clauses ...............................................................................................................152
General Requirement.....................................................................................................................152
Performance Bank Guarantee........................................................................................................152
Failure to agree with the Terms & Conditions of the RFP.............................................................153
Automation of KHDC Activities.......................................................................................................154
High level automation diagram......................................................................................................155
Procurement process......................................................................................................................156
Production System.........................................................................................................................157
Projects to warehouse workflow....................................................................................................159
FG Hubli warehouse ( multifunctional warehouse acting as warehouse and storage house for ssds
scheme ).........................................................................................................................................160

Projects subprojects at various levels.............................................................................................161

Raw material gowdowns................................................................................................................162
Silk projects...................................................................................................................................164
Finance Accounting Automation...................................................................................................165
Inventory System...........................................................................................................................168
Wholesale processing....................................................................................................................169
Assumptions..................................................................................................................................170

Prequalification Criteria

Solution providers desirous of bidding for the project shall meet the following prequalification criteria.

Serial Particulars
No.
1
Bidder Registration

Bidder should be a
registered
Company/Partnership Firm/Sole
Proprietorship and must have
completed 5 years of existence
as on Bid calling date.

Annual Turnover

The bidder should have an

minimum average annual
Turnover of Rupees 5 crore
from Information Technology
Industry

Government/PSU
Experience/Prior
experience in handloom
company

The Bidder should have

executed minimum of one
System integration project
(software development,
installation, training,
implementation, support) for
government/PSU/handloom/
company in India with minimum
value of Rs. 50 Lakhs in the last
three financial years.

IT Experience*

The Bidder should have

implemented at least 3 (three) IT
solutions in India in the last five
years with minimum value of
Rs. 50 Lakhs per

Certificate of
Incorporation from
Register of companies/
Proprietorship
Certificate/Partnership
deed to be submitted.
Power of Attorney
from
Company/Partnership
Firm authorizing
person for signing bid.
Audited financial
statements for the past
Three financial years
(namely 2010-11,
FY2011-12, FY 201213). If Breakup is not
available, Bidder
should submit
certificates from a
Chartered Accountant.
Copy of Work order
and project completion
certificate from client
Copy of Work orders
and project completion
certificate from client.

Work order copy

implementation, including
software design,
implementation, installation,
maintenance of software, user
training and support. Out of
these 3 projects, atleast one
project should have finance &
accounting, Production, human
resource, embedded design, rfid
based solutions payroll,
inventory management.
5

Blacklisting for
fraudulent practices
The organization should not
have been blacklisted for
fraudulent practices by any of its
clients, central / state / UT
Government.

Local establishment at
Bangalore

Local establishment at
Bangalore on awarding the
assignment is Mandatory
The Bidder should have valid
Service tax, sales tax, Income
tax certificates.

Organization
Credentials

Experience

Experienced project managers,

technical managers and ERP
Consultants on board the
company

Embedded Expertise

Design RFID based solutions

Self-Declaration
certificate stating that
the organization has not
been blacklisted by
Central/State/UT
Government and has
not been charged for
any fraudulent activity.
Copy of Service tax
certificate.
Copy of Service Tax,
Sales
Tax, Income Tax
Certificate
Profiles of managers
having minimum 15
years work experience
in the top
multinationals to
execute, design the
software required.
Profiles should be
genuine and should be
on full payroll of the
company. Form 16
from the company
towards those people.
Project completion in
Embedded space,
showing research
towards rfid solutions

* Conditions for Experience

1. The projects listed here should not have been completed using outsourcing of the software
development work either in entirety or in parts. The dedicated and permanent staff of the
bidder should have been responsible for the development and deployment of the software
code.
2. The projects proposed under this category should not have been done for automating any
internal processes of the organization itself or for any of its wholly or partly owned
subsidiaries.
3. The projects proposed under this category should include IT implementation and
customizations of worth more than Rupees. 50 Lakhs. This would exclude the license costs
for any COTS product procured.
4. The projects suggested here should clearly provide the mechanism adopted to perform
integration and the type of integration performed with application systems owned by agencies
external to the project client.
5. The projects suggested here should also state the number of direct users of the system and
the mechanism of delivery of services to these users.
6. The documents provided should be self-certified by the bidders POA (Power of Attorney)
or the company secretary.
7. The bidder would be graded on the basis of the number and type (like the projects of
similar nature*) of such implementations done.

Bidders engaged in fraudulent practices

KHDC requires that the agency contracted through this process must observe the highest
standards of ethics during the performance and execution of the awarded contract(s). KHDC
will reject the bid submitted by the bidder, if it has been determined by KHDC to having been
engaged in corrupt, fraudulent, unfair trade practices, coercive or collusive.
These terms are defined as follows:
a. "Corrupt practice" means the offering, giving, receiving or soliciting of anything of
value to influence the action of KHDC or any personnel in contract executions.

b. "Fraudulent practice" means a misrepresentation of facts, in order to influence a

procurement process or the execution of a contract, to KHDC, and includes collusive
practice among applicants (prior to or after Proposal submission) designed to establish
proposal prices at artificially high or non-competitive levels and to deprive KHDC of
the benefits of free and open competition.

c. Unfair trade practices means supply of services different from what is ordered on,
or change in the Scope of Work which was agreed to.

d. Coercive practices means harming or threatening to harm, directly or indirectly,

persons or their property to influence their participation in the execution of contract.

e. Collusive practices means a scheme or arrangement between two or more

applicants with or without the knowledge of the KHDC, designed to establish prices
at artificial, non-competitive levels; KHDC will reject an application for award, if it
determines that the applicant recommended for award has, directly or through an
agent, engaged in corrupt, fraudulent, unfair trade, coercive or collusive practices in
competing for the contract in question;

Salient Points:

2. The bidder should provide a technical presentation to the KHDC and its Tender
Scrutiny committee which should be in line with the technical proposal submitted
against the evaluation criteria.

3. The bidder should structure the technical proposal in response to the technical
evaluation criteria such that the relevant and appropriate information can be viewed
and studied with ease.
The technical qualification scores applicable are
a. Maximum Total Technical Score: 100 marks
b. Minimum cut-off qualification score: 70 marks

4. The bidder must get more than 50% marks in individual Categories, as well, in order
to be considered for qualifying the technical evaluation stage.

5. The bidder must ensure that the bidder proposes those resources who meet the
minimum mandatory qualification requirements for the proposed role. Any failure to
do so would lead to disqualification of the bidders proposal.

ABOUT KHDC

Karnataka Handloom Development Corporation Limited has been established under the
Companies Act 1956, as a Public Limited Company on 3.10.1975 with Registration No.2883.
The Registered Office of the Company is situated at Priyadarshini Nekara Bhavana,
Vidyanagar, Bangalore 580 031 and its Regional Office is situated at Priyadarshini
Commercial Complex, No.1, Tank Road, Halasuru, Bangalore 560 042.
The main objects of the Corporation are to promote, aid and assist the rehabilitation, growth
and development of the handloom industry in general and in particular of that Sector of the
handloom industry which is outside the Cooperative Sector in the State of Karnataka.
To provide financial assistance to Handloom Industry and all or any allied, ancillary,
preparatory, processing or finishing industries.
The authorised share capital of the Corporation is Rs.55.00 crores and the paid up Share
Capital as on date is Rs.51.88 crores.
The Govt. of Karnataka holds 88.98% of the Share Capital and Govt. of India holds 10.01%
and accordingly it is a Govt. Company within the meaning of Section 617 of the Companies
Act.
AS IS Study

As part of this project, a detailed study was undertaken to understand the ASIS functioning of
KHDC. The project consultant interacted with the identified stakeholders through structured
discussions, walkthrough, and observations to understand and articulate their needs, key
problems & issues faced and their requirements / expectations from the proposed solution. An
assessment was performed to understand the services and service levels and a detailed
profiling of Stakeholders was carried out.
A three pronged approach to the As Is study was taken as shown below:
o Study of the Governing Environment
o Organization Study (Structure/IT Infrastructure)
o KHDCs View (Business processes and functions)
Based on the discussions/study, the following details were captured
o Detailed description and Process maps
o Key Functions along with interfaces with other departments/ external stakeholders
o Services and the service levels
o Organization Structure, Roles and responsibilities of the people handling the jobs.

o Existing IT Applications at the KHDC

o Applicable Rules and Regulations for the KHDC

KHDC has embarked on the journey to adopt Information Technology since 1995.KHDC is
currently using custom based package for finance & accounting at H.O, Inventory
Management at Ranibennur .The system is designed and implemented based on two-tier
architecture and data is largely residing locally.
PCs with MS-Word, MS-Excel with Internet or hard core ledgers are used currently to
support business activities in Departments like procurement, Production, Warehouses,
Projects, and Weaver passbook maintenance, Finance & Accounting, ADMIN/HR, and
Marketing Dept. etc.

Current Issues & Challenges

Lack of robust information sharing and tracking mechanisms with external and
internal entities.

Lack of coordination between centres in conducting and sharing information on a

real-time basis

Lack of easy and efficient mechanism to access historical records for better
sampling and selection

Difficulty in conducting analysis, follow-ups and tracking of audit findings

Minimal level of automation in most departments, IT presence limited to basic

documenting

It focuses only on the automation of the internal functions of the accounting

department & Payroll

It has serious security gaps like inability to have of audit trails, possibility of
modification of data at the database level, easy access by use of only passwords,
unencrypted management of passwords, etc.

It relies on usage of USB Drives and related media devices for transfer of data as
critical as budgets

Data entry gets done at multiple levels leading to duplication of efforts

A latency of multiple days in generation of account statements with enormous

manual effort

Lack of user friendliness in the existing software.

With the passage of time and advancement in backend technologies the requirements of the

user departments and the stakeholders of the KHDC have increased immeasurably. The
requirements now with advantages accrued are enunciated briefly here below

Objective of the RFP

KHDC has planned to use Information & Communication Technologies (ICT) as a key
enabler in delivering the required services to the users (key stakeholders). The primary
objectives of KHDC are:

Automation of all processes and integration between the KHDC system and the
stakeholder departments for real time transfer of information.

Better service to Weavers

Weaver passbook automation

Better managed Operations

Integration of all functions and services

One system for all Operational, accounting and Administrative functionalities

Efficiency in utilization of human resources.

Benefiting from technical advancements in the field of networking for reducing

maintenance cost, ensuring higher security & availability of data and hassle-free
and faster conclusion of activities.

Tighter security of data and audit trail of all activities carried out within the
system.

It is expected that the development of a new system will allow incorporation of

new technologies and open standards and will both deliver enhanced
functionalities and eliminate the risk of breakdown of the present system.

MIS for Decision Making.

Cloud based system to manage the entire solution

embedded RFID Solution to cater to the needs of retail sales

POS based system in KHDC retail outlets

Management system to manage warehouses

Audience

The document is meant for all potential system integrators, who would be interested in
developing and deploying the KHDC IT system. The possession of this document in no way
certifies the permission to develop KHDC IT system. The selection of SI for developing
KHDC IT system is the sole discretion of the department and a separate bidding process will
be used to identify the suitable system integrator.

Purpose of the RFP

The purpose of this RFP is to enable bidders in communicating details, specifications and
cost of their Offerings in accordance to the Scope of Work for the IT solution to be procured
by KHDC to meet functional Specifications as desired from the IT solution specified in this
document.
KHDC is looking for commercially off the shelf available product implementation using SAP
Erp, Oracle Apps, and Microsoft dynamics only. No Open source software or none of the
other open source ERP software should be used for implementation. The system
developer/integrator can develop their own custom software(workflow solutions) from
scratch and should not use any third party software as base to create the system. The
proposed IT system should be an enterprise wide solution, which offers an opportunity to
integrate and optimize all the functions of the KHDC. KHDC will evaluate the methodology
used by the integrator/developer in order to award the tender.
The product should provide the KHDC with cutting edge information system, integrated
across various functions. The solution should be a cloud based load balanced system to
achieve 99.99% SLA.
The IT Solution for KHDC shall need to meet the business and technology objectives of
KHDC and also should take into account the Technical Environment and Functional
Specifications of IT solution. To the extent the software solution does not achieve these
prerequisites it will need to be appropriately configured & customized to the satisfaction of
the KHDC Core Team formed specifically for this purpose. The system should be flexible to
accommodate day to day process changes.
This tender therefore envisages implementation of IT solution covering the following
processes (but not limited to the below mentioned list):

1.

Administration

2.

Marketing Management

3.

Planning and Development

4.

Procurement and planning

5.

Production & Processing

6.

Weaver passbook automation

7.

Inventory Management

8.

Scheme management

9.

Project management

10.

Financial and Management Accounting

11.

Projects Division Management

12.

MIS

13.

Warehouse management system

14.

Gowdowns management system

15.

Wholesale management system

16.

Retail Management system

17.

Processing unit management system

18.

POS system management and pos system

19.

Quality control system at all levels

Copyrights

This document is the whole & sole property of the Karnataka handloom development
corporation limited and no one is authorized to either copy it in portion or entirety for any
purpose other than for developing the KHDC application software.

Scope of Work

The following sections detail out the scope of work to be performed by the system integrator
(SI). The SI shall be responsible for the successful completion / execution of the activities
listed in the following paragraphs, as well as implementation of the proposed solution, as
specified in this RFP, in all the offices of the KHDC throughout Karnataka and other retail
outlets outside Karnataka handled by KHDC.
Overview of the scope of work

The following outlines the broad areas of scope of work for system integrator and the later
sections highlight the detailed scope of work for SI in each of the following areas:
No

Scope of work

Details

Software development Configuration,

Customization &Implementation

Performing System Requirement Study.

Developing Solution Design.
Performing Software Development /

Customization / Configuration.
Developing MIS.
Performing Software Testing.
Performing Change Management. Preparing
Documentation.
Conducting Rollout.
2

Migration of current services along with data

to the new system.

Preparing a strategy & templates for data

migration and digitization to help KHDC
operators for entering data into new
application
Performing Transition Management.

Acceptance testing and Certification

Supporting Functional & Non-Functional

Testing of Application System.
Supporting Acceptance Testing &
Certification.

Application Support

Providing Application Support &

Maintenance.
Performing software health check up

Training

Performing Training needs analysis.

Preparing Curriculum, Schedule, Strategy
and Manuals.
Training to all staff members of KHDC.
Training to all Staff at HO, Unit managers
and service staff.
Performing Change Management

SLA Monitoring

Developing SLA measurement and

monitoring system.

Embedded hardware developed in-house to

cater to POS needs

Training of usage of the embedded rfid

devises.

Embedded scanners designed in house at

warehouse

Training of usage of the embedded rfid

devises.

Application Software Development

A. Performing System Requirement Study

1. The System Integrator (SI) shall perform a detailed assessment of the functional,
technical and operational requirements set out in the RFP.

2. For the requirements listed in the RFP, SI shall prepare the System Requirement
Specifications (SRS) based on the process definitions & Functional Requirement
Specifications (FRS) document provided with this RFP. It should perform its own
individual assessment, by consulting the KHDC and its consultants. The SRS should
have the following minimum details:

a.

List of all forms and their contents;

b.

List of all validations applicable;

c.

Detailed process flow of the entire Business Logic;

d.

List of all data elements and database requirements;

e.

Details of interfaces both external & internal, hardware & software;

f.

System and processes for capturing attributes for SLA measurements;

g.

Various attributes of the application and the mechanism to manage

those;

h.

Details of all tools & technologies to be used;

i.

Assumptions, Dependencies & Constraints.

3. It would be the responsibility of the SI to identify all requirements for the Application
Software and document it as part of the SRS. The SI should follow the latest version
of the IEEE Standard 830 & 1233 for drafting the SRS. Any deviation from this
standard should be communicated in advance to the KHDC and a written consent
should be taken, from it, in this regard.
4. The SRS document should be accompanied with a detailed use case document of all
functions of the application system in line with the requirements specified in the FRS.

5. The SI shall also prepare a requirements traceability matrix (RTM) mapping the
requirements specified in the FRS with the sections dealing with those in the SRS.
The template for preparing the SRS has to be approved by the KHDC before it is used
to document the SRS.

6. A formal sign-off should be obtained from the designated officer identified as KHDC
for the Project, before proceeding with the Design, Development, Customization and
Installation of the systems. The documents to be presented for sign-off should include
the SRS as well as the RTM.

B. Developing Solution Design

1. The SI shall prepare the solution design keeping in mind the technical
requirements suggested in this RFP as well as the signed off SRS. The technical
design should adhere to the industry wide best practices and share those best
practices with the KHDC, in terms of the following:

a.

System Designing;

b.

Database designing;

c.

Software development / Customization;

d.

Security planning;

e.

Bandwidth Utilization.

2. The SI shall design the solution architecture & specifications for meeting the
system requirement specifications finalized by the SI and as approved by the
KHDC. The solution design should ensure that there is no single point of failure
(SPOF) within the IT system for only critical components like database server,
application server, core switch.

3. The detailed system design document should specify the detailed solution
architecture. The Solution Architecture should highlight the major components of
the solution and their interactions and the responsibilities assigned to them, and
map it to the requirements identified in the SRS. It should specify the rationale of
how the sizing of hardware and software was done.

4. Additionally, with respect to this detailed system design document, the document
should minimally include the following:

a.

Design of the detailed application system, including modular structure,

any third party API Is being used, mechanism of presentation, etc.;

b.

User interface designs;

c.

Database structures including ER, Data Dictionaries and DFD

diagrams;

d.

Security architecture & Policies;

e.

Solution application architecture, including the details of each

component used;

f.

Data Backup & Recovery Strategy;

g.

Business Process Models using Control Flow Diagram, Flow charts;

h.

Design trade-offs;

i.

Software / Hardware Deployment Model;

j.

Software/ Hardware Configuration Management;

k.

Database Backup and Management Policies.

5. However, it should not be limited to the above and other design components
deemed necessary must be part of the specified solution.

6. The solution design should identify all the process logic and business logic for all
functionalities and sub-functionalities of IT solution. It should define all the
workflows and the validations at every level of each workflow. The above
requirements should be part of other regular details which should be documented
within the solution design.

7. The SI shall update the RTM by mapping the functional requirements specified as
part of this RFP with the related sections in the design document.

8. The principles of Enterprise Architecture and Service Oriented Architecture shall

be followed while designing the systems. The objective of the designing exercise
should be to identify all possible mechanism of IT implementation within the
KHDC, identify reuse of existing components (both software and hardware) and
remove redundancies within the system.

9. The SI shall prepare and publish standards to be followed for performing the
following activities, namely,
a.

Coding / Customization;

b.

Testing;

c.

Project Management;

d.

Risk Management;

e.

Database structuring;

f.

SQL Query designing.

10. The standards documents should be made available, to the KHDC or to its
designated nominee, during the onset of the requirements gathering exercise. It
would be imperative on the part of the SI to ensure that the standards are approved
by the KHDC or its nominee before they initiate the solution design phase. Further
in case the KHDC or its nominee wants any changes to be accommodated within
the standards it will be essential for the SI to incorporate those before they initiate
the solution design phase.

11. The SI shall submit the solution design document to the KHDC and obtain a sign
off on the design document before commencing the development/ customization/
installation of the solution.

C. Performing Software Development/ Customization/ Configuration

1. The manpower deployed for performing software development / customization /

configuration and testing should at least have a minimum job experience in the
relevant technologies as mentioned in the section Team structure and composition.
This would be applicable for all those resources, which are deployed for the project,
and whose minimum qualification criteria have not been mentioned either in the
technical evaluation criteria or in the team structure and composition section.

2. The SI shall perform the software development/ configuration based on the functional
& system requirement specifications and solution design finalized thereof. The
development/ configuration/ customization process should ensure that the standards
specified during the design phase are adhered to during the entire cycle.

3. SI is supposed to develop the software in conformance with ISO27001 & ISO 27002

standards as well as all known global best practices related to security.

4. A standard methodology shall be adopted for Software Engineering, covering the

entire SDLC (Software Development Life Cycle). Agile model should be followed
and demoes should be given at regular intervals. The system should be developed
using continuous integration agile model and should make use of extreme programing
or test driven development.

5. The development/customization for the application system should be performed at the

premises of the SI. The SI premises should have the following minimum supporting
infrastructure:

Application Staging Server

Database cloud Staging Server

Version control & management server

Build Server

Developer Machines

Testing Machines

Cloud Servers

Windows azure private cloud

Geo redundant Blob storage

Table storage

Hadoop cluster for large data

6. The application software system would consist of,

Application Software/ commercially off the shelf available product

Integration Component (integration between external entities and the application

system with the requirements specified as part of the FRS)

7. The software solution developed should support both English and Kannada (Ability to
enter, read, print in Kannada). The bilingual support should cover the interface of the
application system, the data entered within the application system, the data stored by
the application system and the data displayed by the application system.

8. The SI shall consult the KHDC while developing the user interfaces and design the
interfaces as per the KHDCs requirements.

9. The protocol for communication including data formats and exact mechanism of data
transfer with participating entities has not been defined in this RFP and the SI should
capture these during the requirements gathering phase and ensure that all of these are
documented as part of the SRS document.

10. There are some centres of KHDC which does not have regular internet connection.
The system should have the facility to install the application software at those units
where internet connectivity is limited and whenever the internet is functional, such
that the required features can be availed in an offline manner wherein the data will be
stored locally and once the internet connection is restored the data will be
synchronized with central server.

11. At the unit locations where network facility is not available, the system should have
the facility to copy or write the data in a CD.

12. The SI shall implement workflows, within the IT system, with well-defined business
rules. The two way communication between the stakeholder entities and the
application would ensure that the following minimal requirements are taken care off

Two way handshaking so that each participating entity knows the status of data
delivery;

Point to Point encryption of the data during transit;

Digital signing and time-stamping of data being sent out to the requesting entity
so as to ensure non-repudiation;

Sharing of information using XML as a form of structuring the data; there would
be individual schema requirements for each stakeholder with whom the data
would be shared; these requirements shall be worked out by the SI on a case to
case basis;

Web Service is a popular media for creating service oriented architecture for
sharing information with stakeholders. The KHDC intends to adopt this approach

for all real-time interactions, but it is the discretion of the SI to decide on the
mechanism of interaction in case the situation so requires.

13. The KHDC shall have intellectual property rights over the source code written for
developing or customizing the software application. The SI shall not use the source
code in any other place without seeking permission from the KHDC and without
carrying out a basic sanitation of the code. The sanitation activity would involve all
such activities which would ensure that the code cannot be misused for hacking into
the system. Source code should be part of deliverable without any pre-conditions.

14. SI Should use mature ERPs to implement the system. He can make use of SAP,
Oracle Apps, Microsoft Dynamics Erp systems only. Alternatively he can develop his
own custom system from scratch without the usage of any 3rd party Open source ERPs

D. Developing MIS

1. The KHDC intends to retain transactional data for a period of 10 years within the live
(OLTP) database. The data for the period previous to the 10 year retention period
should be kept in an aggregated form in a separate database. The type of aggregations
to be created over the data has to be identified by the SI and documented as part of the
SRS document.

2. The system shall provide facility for generating and viewing online, real-time project
and MIS reports for transactions handled during a specified period, transaction density
trends for any specified periodicity (hourly, daily, weekly, monthly, yearly) and any
bottleneck situation creating dependency at any stage.

3. The MIS reporting system shall be an integrated system which shall provide userfriendly reporting for points of access like various offices of the KHDC and/or
designated monitoring office. The list of reports has been described in detail in the
FRS, but should be elaborated further during the SRS preparation stage.

4. The SI shall provide full access to generate reports from the system to the KHDC
officials or its nominees. This should be done without compromising the sanctity and
security of the data stored.

5. In addition to the reports that are identified in the FRS, that so far as a particular data
is available in the system, it should be possible to get a report on that for the sake of
helping the KHDC or its designated agencies in analysis and/or decision making.

6. Apart from the regular textual and tabular form of reports, the system should also
enable generation of standard charts and graphs based on MIS data. The charts and
graphs should support 2-dimensional representations as well as motion charts.

7. The system should support drill down and drill through reports.

8. The system should support role based access system for data access.

9. The system should provide capability to dynamically create filters for generating
reports. Such type of filters would be based on existing data or patterns within data
and would be meant to simplify report generation process. A step in this direction
would be to use MIS reports as filter parameters for generating new reports. Districtwise expenditure incurred on various schemes can form the basis for creating a report
identifying the districts which have performed poorly in implementation of any
particular scheme.

10. The system must provide the feature to schedule the automated generation of reports
through it.

11. The SI shall support the 3rd party auditor in auditing the business logic, used for
generating the MIS reports. The SI should also get the usability and presentation of
MIS report formats approved by the KHDC before making them live.

12. The system should be developed using a continuous model of integration and should
accommodate feature( small set ) that has been left out during outlining of this
document.

E. Performing Software Testing

1. The SI shall conduct its testing process as per the Quality Assurance Plan prepared
and provided by it. Such a plan should adhere to the latest version of the IEEE 730
standards.

2. The objective of testing is to ensure that the entire system in totality, including all
hardware, software and human components, which are part of this project, perform as
per the objectives laid down in this RFP. The results coming out from the testing
process should ensure that the objectives enshrined here are met successfully. The
objectives will have the following minimal dimensions

Functional

Security

Performance

3. The SI shall design the Testing strategy, Test Cases and conduct testing of various
components of the software developed/ customized/ configured.

4. The SI shall share the standards followed while performing the testing as well as the
testing strategy and the test cases with the KHDC and the 3rd Party auditor.

5. The SI shall integrate the application software with embedded printer and scanner
developed internally by SI. Such integrations have to be tested as part of UAT and
Integration testing.

6. Project will have to undergo comprehensive testing and should minimally include
Unit Testing, System Testing, Integration Testing, Performance Testing, and Load &
Stress testing.

7. The SI should preserve the test case results and should make them available to the 3rd
party auditor for review. The objective would be to ensure the 3rd party auditor is able
to validate the testing of all possible scenarios.

8. The SI shall share the tools used for testing the application system with the KHDC as
well as the 3rd Party auditor. If the tool is a proprietary tool then it should share at
least one license with the KHDC.

9. The SI shall perform testing of the application software from actual environments of
units located at remote locations. This testing should be performed as part of
performance testing and the results of such an activity shall be shared with the

KHDC.

10. The testing of the IT system shall include all of the following components vis--vis
the functional, operational, performance and security requirements of the project, as
envisioned in this RFP, is concerned

Application Software & Database

Unified Gateway Mechanism for allowing integration between external entities

and the application system.

Testing between each component lying in the KHDC workflow.

11. The SI shall obtain sign-off from the KHDC or its nominees on testing approach and
plan. The SI shall perform the testing of the solution based on the approved test plan
and criteria; document the results and shall fix the bugs found during testing.

12. Though the KHDC is required to provide the formal approval for the test plan, it is
ultimately the responsibility of the SI to ensure that the end product delivered by the
SI meets all the requirements specified in this RFP and the signed off SRS. The basic
responsibility of testing the system lies with the SI.

13. The SI shall create a staging area at the KHDC premises and ensure that all the
application software upgrades/ releases are appropriately tested in the staging area and
are applied on live instance only after such comprehensive testing. Any downtime/
system outage for IT system caused by applying such patches shall be attributed to the
SI as system downtime and shall attract penalties as per SLA.

14. SI will do the following activities in order to successfully implement the solution

1. Preparing documentation

a. The SI shall prepare/ update the documents including the following set of,
Software Requirement Specification, Detailed Design, Change
Management Plan, Training Plan, Test Cases & Results, User Manuals,
Training manuals, Operations Manual, Maintenance Manual,
Administrator Manual, Security Policy, etc. as per acceptable standards.
An updated and latest copy of these documents has to be handed over
during the time of exit.
b. Four versions of the user manuals should be created. One version should
be created for the employees and it should address the mechanism of using

the application for performing internal activities. The second version

should be created for the senior management of KHDC. This version
should help them in understanding the mechanism of working on the
website. The third version should be a manual for guiding the external
entities KSDA/NSCs/other Institutions, etc. in accessing the IT
application system. The fourth version should be a manual for the
Distributors/Dealers on using the Application Software for remitting
funds. For all the four versions the SI is responsible for providing a print
ready soft copy to the KHDC, in English and Kannada, which in turn will
print them at the from any source which it deems fit. Further all the four
manuals should be made available for downloading from the website of
the software application and also from the application itself. Similarly
FAQs should also be written and made available for viewing and
downloading in the system.

c. System should be interactive wherein queries can be posted online and

replies given.
d. The SI shall obtain the sign-off from the KHDC or its nominee for all the
documents submitted for this Project and shall make necessary changes as
recommended by KHDC before submitting the final version of the
documents.
e. The SI shall maintain logs of the internal review of all the deliverables
submitted to the KHDC or the agency designated by the KHDC. The logs
shall be submitted to the KHDC or the designated agency on request.

2. Developing Automated Reconciliation Modules (Physical and cycle counting)

1. The SI shall get the reconciliation procedures audited by the 3rd party auditor and the
KHDC before making them live.

2. Reconciliation would be divided into two broad categories, namely,

Transactional Reconciliation Reconciliation defining the number of transactions

performed between the KHDC and the participating entity are same in both the
databases of the KHDC as well as in that of participating entity.

Financial Reconciliation Reconciliation defining the amount of money

transacted between the KHDC and the participating entity is similar to what has
been recorded by both the systems.

3. Reconciliation report should be accessible as part of the MIS and as an email to the
concerned stakeholders.

3. Conducting Pilot

1. Rollout will be done in two phases, in phase-1, One complete workflow starting from
weaver till the retail outlet should be implemented. In stage 2 remaining flows to be
integrated.
2. The detailed implementation plan has to be provided by the SI and should implement
as per KHDC norms.

4. Defining Ownership and Licenses

1. The ownership of all software developed/ customized/ configured/ procured and for
support would lie with the KHDC.
2. The licenses procured for any COTS software solution should ensure that in case an
upgrade, patches, or hot fix, is launched, it should be given to the KHDC free of cost.
The SI should ensure that it upgrades the existing deployed solution with the released
patch or hot fix provided under the license and this will imply that all dependencies, if
any, for performing this upgradation are taken care off.
3. All licenses & support related to these should be in the name of KHDC.

5. Migration of current services along with data to the new system

A. Performing Data Digitization & Migration

1. The SI shall prepare a strategy & templates for data migration and digitization
after discussion with the KHDC and get the same approved by the KHDC.
2. The KHDC operators shall perform data migration from the existing systems to
the database implemented for the Application software.
3. The KHDC operators shall perform migration of the legacy data into the IT
database. The SI will help KHDC with any functionality migration as may be
required.
4. Data migration to be performed by the KHDC operators shall be preceded by an
appropriate data migration methodology, prepared by the SI and approved by the
KHDC.
5. The SI shall conduct integration testing of the application software once before
data migration and once after data migration & before preparatory go-live.

B. Performing Transition Management

1. The SI shall help the KHDC in managing the transition from the existing IT
system to the proposed application system.
2. The transition process should ensure that there is no service disruption in any of
the services provided by KHDC. The challenges during transition would be to
perform management & consolidation of data between old system and new
system, between the existing application database at each KHDC unit and the new
database. Here it should be noted that no unit of KHDC will ever work
simultaneously on both older IT system as well as new application software
system. There should be single date complete transition from old application to a
new application for a particular unit. In order to do this the local database of the
old application and the central database of the new application should synch with
each other.

3. The SI should identify a cut-off date, till which it should migrate all the data from
old database to the new database. The data from the cut-off date to the go-live date
should be incorporated within the new database using the application directly.

4. SI has to ensure zero service disruption during transition as such it needs to plan
accordingly. The plan for transition should focus on the following 2 key activities

Training Training to its operators as well as KHDC officials should be

provided either on government holidays or after office hours to the best
possible extent.

Deployment Deployment of software should be done on a government

holiday or after office hours so as to ensure that there is no disruption in
regular work.

5. Once the new system has gone live and is operational, it will be the responsibility
of the SI to ensure that no instances of the existing IT system is available in any
office or is in use for any purpose.

6. At the end of the contract period or in the event of termination of contract, the SI
is required to provide necessary handholding and transition support, which shall
include but not be limited to, conducting detailed walk-through and demos/ drills
for the application system, handing over the entire software (including source

code, program files, configuration files, setup files, project documentation etc.),
addressing the queries/ clarifications of application implementation agency,
selected by KHDC.

7. The ownership of the data generated upon usage of the system, at any point of
time during the contract or expiry or termination of the contract, shall rest
absolutely with KHDC.

8. During the exit/ transition management process, it is the responsibility of the SI to

address and rectify the problems identified with the application software and
installation/ reinstallation of the system software etc. The SI shall ensure that the
application software is handed over to the KHDC in a complete operational
condition to the satisfaction of the KHDC. In case SI is unable to address such
issues, KHDC may levy penalty or invoke the PBG.

9. At its discretion the KHDC may extend the contract period on mutual terms in
order to ensure smooth handover.

10. During the contract period, the SI shall ensure that all the documentation
including policies, procedures, asset registers, configuration documents, etc. are
kept up to date and all such documentation is handed over to the KHDC during
the exit management process.

c. Acceptance testing and Certification

Supporting Functional & non-functional testing of application system

1. KHDC shall undertake an exercise of Testing, Acceptance and Certification of the

IT solution, as soon as the System Integrator declares that the IT system to be
ready for the go-live. System Integrator shall coordinate with the KHDC and the
TPA for performing the acceptance testing and certification. The following
methodology will be adopted for acceptance testing to be carried out for the IT
solution.

2. KHDC holds the right to conduct Third Party Audit (TPA) on the IT system to be
designed and developed under the scope of this project. As part of Acceptance

testing, concurrent audit and certification, KHDC owns the right to audit and
review, by itself or a third party agency, all aspects of project development and
implementation covering software including the processes relating to the design of
solution architecture, design of systems and sub-systems, coding, testing, business
process description, documentation, version control, change management,
security, service oriented architecture, performance in relation to defined
requirements, interoperability, scalability, availability and compliance with all the
technical and functional requirements and the agreement. Here it is important to
mention that there will be one agency selected by the KHDC for audit &
certification of overall Application software and the security and control aspect of
the new IT system.
3. The TPA will lay down a set of guidelines following internationally accepted
norms and e-Governance Standards for the testing and certification in all aspects
of the project development and implementation covering software and the
processes relating to the design of solution architecture, design of systems and
sub-systems, coding, testing, business process description, documentation, version
control, change management, security, service oriented architecture, performance
in relation to compliance with SLA metrics, interoperability, scalability,
availability and compliance with all the technical and functional requirements of
the RFP and the agreement.
4. The TPA will be involved with the project early in the development stage to
ensure that the guidelines are being followed and to avoid large-scale
modifications pursuant to testing done after the application is fully developed.
5. The TPA nominated by KHDC will establish appropriate processes for notifying
the System Integrator of any deviations from the norms, standards or guidelines at
the earliest instance after noticing the same to enable the operator to take
corrective action.
6. Such an involvement of and guidance by the TPA will not, however, absolve the
System Integrator of the fundamental responsibility of designing, developing,
installing, testing and commissioning the various components of the project to
deliver the services in perfect conformity with the SLAs.
7. Should acceptance tests not be concluded to the satisfaction of the KHDC shall
have the right to reject the solution or identified faulty components, in respect of
which the acceptance tests were not satisfactorily concluded, and to terminate the
contract and in that event the System Integrator shall refund and repay all the
amounts received by them from KHDC and any expenses within 30 days from the
receipt of a written claim from KHDC.

8. Third Party Audit shall include monitoring the performance of the IT system with
a view to ensuring desired Quality of Service (QoS) by the SI as defined in the
respective SLAs, signed between the KHDC, and SI. The 3rd party audit will be
initiated from the stage when the first sets of documents are delivered by the SI
and would conclude after go-live. The 3rd party review will focus on the
following

I.

Concurrent Audit This audit will be performed while the requirements

analysis, design and development are being performed. As part of this
audit, series of best practices & standards document will be prepared by
the system integrator. These documents will relate to the following coding, testing, project management and

II.

risk management. The system integrator has to ensure that the 3rd party
agency approves these standards and best practices documents before it
proceeds with solution design. These documents will be manuals to be
followed by the system integrator at all stages of SDLC. The 3rd party
agency will be responsible for ensuring concurrence to the standards and
escalating any deviations. During this stage all deliverables in document
and software source code form would be audited for quality.

III.

User Acceptance Test and functional compliance audit This audit will be
performed at the stage of user acceptance, once the final source code has
been handed over for audit and compliance. This audit will focus on
compliance of the application software to the functional requirements
provided by the system integrator.

IV.

Security & Implementation audit This audit will be performed after the
user acceptance and functional audit stage is completed. This audit will
focus on the compliance of the application software to the security
requirements. During this stage, audit will be performed to ensure that the
SLA monitoring processes have been firmly put in place. The role of the
TPA would be to certify the

Accurateness & reliability of the details being projected by the SLA

monitoring system.

Completeness of the SLA monitoring system, in terms of information

being captured and projected.

9. Within these three stages two sub activities will be performed, namely,

a. Primary audit Preliminary investigation and reporting of deviations and

corrections to be performed over each deliverable

b. Concurrence Audit Final investigation for checking implementation of

recommendations given during the primary audit

10. The KHDC would perform a detailed acceptance testing over the software
application deployed from all locations of the KHDC, from where the system is
expected to be accessed along with a test from the Application Software. These
testing would be performed once with the sample data and once after the data
migration has been performed.

11. Acceptance criteria for the IT Project would be laid down by the KHDC after
reviewing the SRS provided by the SI. The acceptance criteria would be provided
to the SI before the development commences. The applications would be tested by
the KHDC or any third party identified by the KHDC with respect to the
parameters lay down therein. Here it should be noted that acceptance of the entire
IT application would require migration of all data as per the FRS. The acceptance
of all the functionalities/ modules would be essential before go-live.

12. User Acceptance Testing shall be conducted at the KHDC premises. SI should
adapt to the changes by using continuous model of integration.

13. SI shall provide and ensure all necessary support to the KHDC or to any third
party conducting the Acceptance Testing including sharing necessary project
documentation, source code, and systems designed & developed, testing strategy,
test cases developed for the project, test results etc. The SI would be required to
facilitate this process and it would be incumbent upon the SI to meet all the
criteria.

14. The KHDC will undertake an exercise of Testing, Acceptance and Approval of
the application system through a third party, as soon as the SI declares the system
ready for this purpose before Go-Live. SI shall coordinate with the KHDC
and/or the nominated agency for performing the acceptance testing and
certification. During the testing process the KHDC will only play the role of
observer and facilitator, while the SI will be responsible for ensuring that the 3rd
party audit is successfully concluded and appropriate approval is received from
the 3rd party auditor well in advance, so that there is no delay in the delivery of

milestones.

15. The acceptance test will be done by the Third Party Auditor (TPA) as per the plan
proposed by the SI and agreed by KHDC. The system integrator has to show the
successful installation and provide the generated data in a format prescribed by
KHDC, and other parameters as per specification mentioned in this RFP. All
expenses for acceptance of the system shall be borne by the system integrator.

16. The KHDC will establish appropriate processes for notifying the system integrator
of any deviations from defined requirements at the earliest instance after noticing
the same to enable the system integrator to take corrective action. Such an
involvement of the Acceptance Testing & Certification agency/ies, nominated by
the KHDC, will not, however, absolve the operator of the fundamental
responsibility of designing, developing, installing, testing and commissioning the
various components of the project to deliver the services in perfect conformity
with the SLAs. Following discusses the acceptance criteria to be adopted for the
proposed system as mentioned above.

17. Concurrent audit will be done during the development period. Compliance audit
(Security and overall functional) will be conducted after testing and before go-live
stage.

Acceptance Criteria and Certification

1. The primary goal of Acceptance Testing, Audit & Certification is to ensure that the
proposed system meets requirements, standards, specifications and performance
prescribed by the RFP and as needed to achieve the desired outcomes. The basic
approach for this will be ensuring that the following acceptance tests shall be
conducted:

Functional Requirements Compliance Review o Technical Requirements

Compliance Review o Availability Requirements Compliance Review

Performance Requirements Compliance Review o Security Requirements

Compliance Review

Manageability Requirements Compliance Review o Integration

Requirements Compliance Review

SLA Reporting System Adherence Review o Project Documentation

Quality Review o Data Quality Standards Review

2. Functional Requirements Compliance Review

1. The new system developed/ customized by system integrator shall be reviewed

and verified by the agency against the Functional Requirements signed-off
between KHDC and system integrator. Any gaps identified shall be addressed by
system integrator immediately prior to Provisional Go-live of the system. One of
the key inputs for this testing shall be the traceability matrix to be developed by
the system integrator for new system. Apart from Traceability Matrix, agency may
develop its own testing plans for validation of compliance of system against the
defined requirements. The acceptance testing with respect to the functional
requirements shall be performed by both independent third party agency (external
audit) as well as the select internal KHDC users (i.e. User Acceptance Testing)
and the system has to satisfy both third party acceptance testing and internal user
acceptance testing, upon which the system shall go-live.

2. For conducting the User Acceptance Testing, KHDC shall identify the employees
from the respective divisions, who shall be responsible for the day-to-day
operations of the functions automated through the IT system. The system, during
the functional requirements review, shall necessarily satisfy the user acceptance
testing process.
3. SI will build up the UAT test scripts (in each pilot & rollout phases) for evaluating
the implementation of business processes, which will be mutually agreed with
sign off.
4. Technical Requirements Compliance Review
5. The technical design of the application system including the solution architecture,
system design, development approach, source code etc. shall be reviewed by the
third party auditor, to ensure compliance with the technical standards defined for
the project. Any non-compliance/ gap identified in the design shall be reported to
SI, which shall be corrected and signed-off prior to undertaking the next phase of
activity in the project implementation.
6. Security Requirements Compliance Review

7. The IT solution configured and customized shall be audited by the TPA from a
security & controls perspective. Following are the broad activities to be performed
by the Agency as part of Security Review. The security review shall subject the
application system to the following activities:

Audit of Network, Server and Application security mechanisms

Assessment of authentication mechanism provided in the application

/components/ modules

Assessment of data encryption mechanisms implemented for the solution

Assessment of data access privileges, retention periods and archival

mechanisms o Server and Application security features incorporated etc

Study of exceptions in the audit trail

Report on access to audit trails

Tracking critical transactions within the audit trail

Logging of all critical errors

Report on all security breaches

8. Performance Requirements Compliance Review

9. Performance is a key requirement for the Project. The deployed solution is
supposed to be a highly scalable solution, which is designed in a scale up/out
model at each layer. This will provide the model for future growth. This test
process will include the following activities.

I.

Determination of performance metrics

II.

Designing performance tests

III.

Development of workload and testing of the system with a particular

volume of transactions and data

IV.

Performance testing and sizing study

V.

Identification of bottlenecks and providing solutions.

VI.

Determining final performance figures.

VII.

Communication of final results to all stakeholders

Final output of this process would be a sizing guide for the solution tested. The sizing guide
will document the details of the performance tests, test data, bottlenecks identified, alternate
solutions provided, and the final performance data. This document will provide the scalability
data of the solution for various loads. This will become the authentic guide for future scale
up/out plans of the Project.

10. Availability Requirements Compliance Review

11. The IT solution should be designed to remove all single points of failure. The
solution should provide the ability to recover from failures, thus protecting against
many multiple component failures. This test process will include the following
activities.
I.

Designing tests for high availability testing

II.

Execution of high-availability tests and robustness tests

III.

Assessment of transaction/data losses in relation to Disaster Recovery

system

IV.

Communication of final results to all stakeholders

High Available clustering at all Web, Application and DB server levels will be targeted as per
the relevant SLAs.

12. Manageability Requirements Compliance Review

13. Manageability Requirements of the IT solution will be tested and certified for the
following:

I.

Remote Monitoring of Status and Statistics of all high-level components.

II.

Management capability to start/ stop/ restart services & systems.

III.

Auto discovery of all components identified through IP Address.

IV.

Auto discovery of all other system components.

V.

Ability to track changes in configurations of the system components to

help track Service.

VI.

System disruptions.

Final output of this process would be a manageability compliance document for the IT system
deployed.

14. Integration Requirements Compliance Review

15. The TPA shall test and certify the solution for its capability to integrate with external

entities. The TPA shall also test the level of coupling embedded within the system and
its internal components. The TPA will perform the following tests and validations:

I.

Testing Components and Component Integration

II.

Testing System Interfaces

III.

Validation testing

16. SLA Reporting Systems Adherence Review

17. SI shall design, develop, implement/ customize the SLA monitoring toll and shall
develop/deploy any additional tools required to monitor the performance
indicators defined for the project. The TPA shall verify the accuracy and
completeness of the information captured by the SLA monitoring system
implemented by the SI and shall certify the same. The tools deployed for the IT
system, based on SLAs, shall be configured by SI.

18. Project Documentation Quality & Comprehensiveness Review

19. The TPA shall review the project documents developed by SI including
requirements, design, source code, installation, training and administration
manuals, and version control as per industry standards etc.

20. Any issues/gaps identified by the testing agency in any of the above areas, shall be
addressed to the complete satisfaction of the KHDC without any additional cost.

21. Data Quality Standards Review

22. The TPA shall perform Data Quality Assessment for Data digitized by the SI and
the data migrated by the SI to the IT system. The errors/gaps identified during the
Data Quality

23. Assessment shall be addressed by the SI before moving the data into production

environment, which is a key mile stone for Go-live of the solution. Some key
testings to be performed would be

Database Backup and recovery Testing

Query Testing

Data Conversion process testing

Supporting Accepting Testing &Certification

A. A 3rd party auditor would be involved to verify the configuration of the system and
ascertain whether it meets all known standards mentioned in this RFP. The auditor
will also verify the warranty related documents.

Application Support

A. Providing Application Support

1.

During the contract period, SI shall be completely responsible for defect

free functioning of the application software and shall resolve any issues
that include bug fixing, improvements in presentation and/or functionality
and others at no additional cost during the support period, within a
duration agreed to between the KHDC and the SI, failing to deliver within
the agreed time will attract penalty. To this end it would be responsible for
undertaking support of the application software.

2.

SI shall provide the latest updates, patches/ fixes, version upgrades

relevant for the solution components agreed upon by the KHDC.

3.

The SI must provide onsite Warranty/Support for the software application

for 5 years, commencing from the date of go-live during the business
hours.

4.

The SI shall be responsible for software version management, and

software documentation management, reflecting current features and
functionality of the solution. All planned changes to the application
systems shall be coordinated within the established Change Control
processes to ensure that:

a.

Appropriate communication on change required has taken place;

b.

Proper approvals have been received;

c.

Schedules have been adjusted to minimize impact on the production

environment.

5.

The SI shall define the Software Change Management & Version control
process and obtain approval for the same from the KHDC. For any
changes to the software, the SI has to prepare detailed documentation
including proposed changes, impact to the system in terms of functional
outcomes/ additional features added to the system etc. The SI is required to
obtain approval from the KHDC for all the proposed changes before
implementation of the same into production environment and such
documentation is subject to review at the end of each quarter of
maintenance support phase.

6.

For performing of any functional changes to system, which are deviating

from the signed-off Functional Requirements/ System Requirements, a
separate Change Control Note (CCN) shall be prepared by the SI and
effort estimates shall be mutually agreed between the SI and the KHDC.
This is applicable to the change requests coming up after the expiry of a
six months period post Go-live stage. Before go-live and during the six
months post-go-live period, such changes and feedbacks from the KHDC
pertaining to functional specifications will be incorporated by the SI
without any additional costs to the KHDC.

7.

Any changes/ upgrades to the software performed during the support phase
shall be subjected to comprehensive & integrated testing by the SI to
ensure that the changes implemented in the system meets the desired and
specified requirements of the KHDC and doesnt impact any other
function of the system.

8.

The SI shall perform health check-up of database and the application, once
every quarter, so as to identify the areas of concern and subsequently
address those concerns. The objective of the health check-up would be to
ensure that any issues concerning performance of the database and the
application should be identified and tackled. The SI shall review security
advisories (such as bulletins generally available in the industry) on a
regular basis to determine vulnerabilities relevant to the IT assets and take
necessary preventive steps after taking prior approvals.

9.

SI shall perform installation of upgrades of system software. The critical

updates shall be implemented immediately. Rectification of problems due
to crashing or malfunctioning of the software; within the time limits
prescribed in the RFP would also be the responsibility of the SI.

10.

The SI shall procure licenses as required for the complete software

solutions supplied under this contract. The license certificate has to be
procured in the name of the Managing Director of Karnataka State
Handloom development Corporation and submitted to KHDC.

11.

The essence of the software maintenance contract is to ensure that the

entire systems software works perfectly in unison and delivers expected
performance during the period covered by the agreement between the SI
and the KHDC and that the systems uptime is up to the standards
prescribed in the RFP.

Software health check-up

1. The system integrator will undertake system health check-up measures as a part of
overall responsibility for maintenance of the proposed system. It will include the
following activities:

Form software health check-up policy in consultation with the KHDC o Frame
software health check-up schedules

Software health check-up must cover the entire system

Software health check-up activities must be conducted at least once in a month at

each unit.

2. The system integrator shall arrange to hold one day training cum workshop for
improving the skills of the KHDC employees in proper usage of Application Software
& day to day maintenance.

Training

1. The SI shall conduct Training Needs Analysis of all the concerned staff and draw up a

systematic training plan in line with the overall project plan. The trainings shall be
provided at the KHDC Head Office or any other district premises, as fixed by KHDC.

2. A separate training curriculum shall be developed for the following groups:

Officers at HO;

Staff at KHDC centres

Operational Staff at warehouses, subcenteres, godowns, PTPH

3. The SI must impart training to all the KHDC staff to make them well conversant with
the functionalities, features and processes built in the IT system. This is aimed to
ensure smooth operations enabled through IT system. The SI shall train all such
employees and provide relevant training materials to them. The training pedagogy
will be designed to impart hands-on experience with adequate usage of cases and
scenarios to the extent feasible. Training of its own personnel will be at the cost of the
SI.

4. Training schedule shall be so designed in batches that the on-going/ regular operations
are not affected seriously.
5. The SI will have to impart training on basic application software usage & access skills
to the trainees. This would not include training on MS Office or any such products.

6. The SI shall also be responsible for retraining the above staff whenever changes are
made in the application and/or personnel and it is the responsibility of the SI to ensure
that the staff from KHDC involved in the operations is familiar with new versions (if
any) of the IT system.

7. Training content will focus on scenarios and case studies with respect to each type of
transaction with the purpose of giving a realistic approach to the trainee on how to
handle a particular case. Also, stress would be on giving as much hands-on experience
as required to make the trainees fully conversant and able to work effortlessly on the
application.

8. The duration of training (for the KHDC personnel) shall be finalised jointly by the SI
and the KHDC. However the period should be sufficiently long for effecting
meaningful assimilation of training content by an average user.

9. There should be at least 2 qualified personnel from the SI side in every training
session for conducting the training program.

10. It should be appreciated that the training and hand-holding activity will be an ongoing
activity which should be undertaken as and when required. Such a requirement will be
communicated to the SI by the KHDC and would be paid for separately.

11. The SI shall be responsible for conducting Training as per the scope of work and as
per the detailed training strategy plan - both these documents have to be read in
conjunction. It is the responsibility of the SI to identify the exact effort required for
conducting the training and quote accordingly in the commercial bid. The KHDC will
not entertain any type of claims caused by delays or wrong estimation done by the SI.
In case KHDC intends to utilize additional efforts from SI in conducting training
beyond the scope of the work it would make payments for the same in line with the
man-month rates quoted in the commercial bid.

12. In case more than 30% of the respondents suggest that the training provided to them
was un-satisfactory or less than satisfactory then the SI would have to re-conduct the
same training at no cost to the KHDC.

13. Soft Copy of the Course Material will be provided by KSP and the SI should provide
hardcopies of the Course Material to all trainees (Course material to be printed in both
English & Kannada).

SLA Monitoring

1. Service levels agreed with the SI would be monitored by the KHDC on a monthly
basis and AMC payments would be made quarterly after subtracting the total penalties
arising due to non-compliance of the SLA
2. The SI shall develop an SLA Measurement and Monitoring System (SMMS) for
measuring and reporting SLAs. The SI shall provide access to the SMMS to the 3rd
party auditor for reviewing the mechanism adopted for measuring the SLAs and also
the values achieved against each SLA. The SMMS shall be developed in conjunction
with the IT solution
3. SI shall ensure that the proposed SMMS address all the SLA measurement
requirements and calculation of applicable penalties as indicated in the RFP.

4. All data flowing to the SMMS shall be made directly from the IT solution. The
SMMS shall also be audited along with the IT solution. No manual data entry should
be performed on the SMMS

5. SMMS should be capable of generating MIS reports to project the SLAs achieved in
the month and also the monthly bill shall be generated through the SMMS
6. It would be the responsibility of the SI to generate appropriate MIS reports both in
hard and soft copies to ensure accurate capturing of the work carried out during the
month.
7. Payments to be made for quarterly would be calculated on the basis of the monthly
MIS reports generated from SMMS

Coverage & Duration of the Project

2. The operations shall cover the KHDC head office at Hubli, regional office at
Bangalore and all the KHDC centres. There is one corporate office, one regional
office, multiple projects, subprojects, nearly 12000 weavers (passbook automation) ,
56 retail outlets, 9 warehouses, 3rd party processing houses, dye house, PTPH all
working differently throughout India.
3. For the purposes of this RFP, pre requisites for Go-Live are as follows:

The IT system is completely operational as per the requirements in this RFP after
successful completion of the pilot and full rollout.

All the acceptance tests are successfully concluded as per the satisfaction of the
KHDC.

System is certified by 3rd Party, wherever applicable, in accordance with

requirements of the RFP.

Three month acceptance go-live and stabilization go-live is completed.

4. The System Integrator (SI) would be responsible for providing comprehensive AMC
& Support for the application software for a period of 5 years from the date of GoLive. Such a comprehensive AMC would include bug fixing, application fine-tuning
so as to enhance its performance, etc. SI should provide first year AMC in the

included cost for proposal.

5. Access to the application shall be extended to the new KHDC offices and centres
which may be opened by the organization during the contract period.

Implementation Approach & Plan

Project Implementation Plan

KHDC plans to roll-out the services and functions in a phased manner, where each
phase is broken down into smaller steps to match the resources and capacities at
the disposal of the KHDC. A phased implementation plan with better risk
management and planned capacity building has been charted out to lower the risk
of incompatibility with resources, user needs and policies compared to a BigBang approach.

Implementation of IT system in the State shall be done in two segments

Backend operational part and warehouse to retail chain management.

It is proposed to implement the project in a phased manner.

The phasing plan discusses from both geographical and applications phasing for
the project

Business model

1. The idea of a business model within the context of IT system relates to addressing the
Application development and maintenance costs of the IT system and the capacity
building that needs to be simultaneously carried out. The main objective of the
business model is to minimize the risk for both the organization and the System
Integrator.
2. This model rests on the premise that the IT application and training program is created
and operated by the System Integrator for a specified time. The System Integrator
should identify the required bill of hardware materials& System Software(Refer
Section 8 & 9 of ANNEXURE IV: Bid Formats) and is expected to give detailed bill
of materials as per data center requirements for setting up infrastructure to run the
proposed software solution and also create training modules, conduct user training
and provide support.
3. The broad sets of responsibilities expected from the System Integrator are:

Development / customization and deployment of IT system;

Preparing Strategy & templates to facilitate KHDC operators in Data

Migration and digitization of the data to make IT operational;

User Acceptance tests (UAT) with validated scripts from KHDC; o User
training for KHDC users and other stakeholders;

Application Software, System administration/ operations training to the

select employees of KHDC.

4. The System Integrator has to help KHDC in Preparing Strategy & templates to
facilitate the migration/conversion of entire data from the present system, and also the
necessary/requisite data to make the system operational, into the IT system. Prior to
Go-Live of the system, the Project Monitoring unit shall conduct 3rd party IT
performance and security audit.

5. The System Integrator shall integrate required hardware necessary for the
implementation of the IT System. The servers shall be housed at the location
suggested by KHDC.

6. The System Integrator shall be completely responsible for imparting the application
software, system software training to all KHDC officers and other stakeholders like
the Unit managers, sales team, etc. The System Integrator shall provide online
support, online training module and Handholding activities for KHDC to migrate to
the new IT system. The KHDC shall have strategic control / ownership over all the
assets deployed like system software including database, data and application
software with corresponding components.

7. The payments would be made on a CAPEX OPEX model, wherein all the capital
expenditure, incurred by the SI on system software and application software and cost
incurred in providing support before go-live, would be paid as per the payment
schedule on completion of milestones before the initiation of go-live. Operational
expenditures comprising of Software AMC, CCN, warranty & support, would be paid
on a quarterly basis. Within the OPEX, CCN, the costs would be paid as per actual
level of effort required. The cost for undertaking CCN would be calculated by
multiplying the effort mutually agreed between the KHDC and the SI with the man
month rate quoted by the SI in the commercial proposal.

Team structure and composition

1. This section provides the details of minimum team requirements including its
structure and composition during the software implementation. The team to be
deployed should be divided into four sections, namely,

Project management team.

Implementation team.

Training team.

2. The project shall be headed by the project manager, who would be responsible for
the overall execution and implementation of the project. The technical team, the
training team would directly report to the engagement / project manager.

3. The implementation team would be lead by the Module team leader, who would
be assisted by the Project Manager

4. The development lead of the technical team would be responsible for leading the
developers who would be working on individual applications/ modules of the IT
application software. Similarly the development lead would also be responsible
for leading the testing & quality assurance team. The quantity of resources
scheduled for deployment would vary based upon the effort estimated by the
bidder. Implementation work cannot be outsourced and the team deployed for this
activity should be on the payrolls of the SI. Further it would be the responsibility
of the SI to get approvals on the profile of the development team members from
the KHDC prior to their deployment in the project.

5. The development leader would also be responsible for managing and supporting
the implementation of the IT system. The entire development team placed at the
head office should be in place before the pilot phase commences.

6. The Training Manager would additionally be part of the team and would be
reporting to the project manager. Training Manager and Trainers should be well
versed in Kannada Language along with English.

7. Here it should be noted that the cost of the project manager, the entire
implementation & deployment team and the Training manager has to be billed
under the IT application software development cost.

8. The detailed qualifications required for each resource is mentioned in the

following table

Resource

Role

Qualification

Project manager

The engagement / project

manager would be the main
interlocutor between the KHDC
and the SI. He would be the
person to whom the entire team
of the SI involved in
designing,development, rollout
and support of the project would
be reporting.

The person suggested should have a

minimum technical qualification Masters
degree/diploma (inApplications or
Computer Science or IT)/
MBA;He / She should have had an overall
experience of 15 years working in
projects related to implementation of IT
solution

Software

The Software Development

The person/s suggested should have a

Development Team
lead

team leader would be

responsible for managing the
activities leading to the
development of software. This
would include software
development, testing,
deployment and rollout. The
resource would be reporting to
the engagement

minimum educational qualification, BE /

BTECH in Computer Science or MCA;
He / She should have had an minimum
experience 12 years in IT implementation,
configuration customization

/ project manager.
Developers

They would be responsible

for

Person/s suggested should have a

minimum educational qualification, of

developing the source code

or

BE / BTECH or MCA; Resource should

have had an minimum

performing the customization of

the

experience of 7 years in IT

application software proposed.

Testers

The Resource would be

responsible for
testing individual software
and documents. The tester should
be capable of unit testing,
integration

Training manager

implementation,configuration and
customization. One year post go-live and
whenever a change is requested. There
should be atleast 20 developers working
on the entire project.
a.
The person/s suggested should
have a minimum educational qualification
of BE/ BTECH or MCA;
He / She should have an minimum
experience of 6 years or above in
software testing and quality assurance
processes;

testing, load testing, etc. He /

She would be responsible for
preparing test cases, executing
test cases and reporting the
observations. He / She would be
responsible for both manual and
automated testing.

b.
Experience in using automated
testing tools

Training Managers would be

responsible for creating training
plan and ensuring its
approval and execution. He / She
would be reporting to the
Engagement / Project Manager.

The person/s suggested should have a

minimum educational qualification of a
post graduate degree like MCA / MBA;
He / She should have an overall
experience of more than 10 years or
above in training.

Experience letter should be submitted by

the employer. Minimum 10 testers should
be onboard the project.

Stakeholders, Roles & Responsibilities

A clear definition of the roles and responsibilities of all the stakeholders in the project
establishes transparency, accountability, manageability and efficiency in the project. This
section gives an overview of the roles and responsibilities of KHDC and the System
Integrator. The detailed scope of work and responsibilities for System Integrator are
discussed in Section 4 of this document.

Responsibilities of Karnataka Handloom Development Corporation

In summary, the following outline the key responsibilities of KHDC in the proposed IT
implementation project.

a. Constitute the Governance and Project Management Structures from KHDC as

required for IT software implementation

b. Evaluate the bids received in response to this RFP and select the System Integrator

c. Finalization of the agreement and the SLA with the System Integrator

d. Facilitate meeting of the board of directors at regular intervals to take stock of the
progress of the project, resolve issues and issue relevant orders and guidelines with
respect to any reforms or Business process reengineering with defined Standard
operating procedures (SOP)

e. Finalization of project implementation plan along with timelines and deliverables in

consultation with the System Integrator with best practices in industry.

f. Co-ordinate with the units and its agencies associated with the project to ensure their
participation in the project initiative.

g. Develop physical space & related infrastructure at the KHDC corporate office to the
extent required to participate in the IT project.

h. Identification of list of personnel who shall be trained and issue communication to the
trainees regarding the time and venue where the training activity is held.

i. Provide office space/ infrastructure required for conducting training programs.

j. Continuous monitoring of the performance of System Integrator in phases using SLA

criteria specified in the RFP
k. Select a reputed 3rd party as the agency for conducting security audit of the IT system

l. Creation of suitable structures and procedures to evaluate /ensure that the payment
that is due for the services rendered is paid in terms of the SLA/ Agreement
conditions

m. Tie-up with Financial institutions to facilitate e-Payment (for payment of Provident

Funds, Income Tax & VAT) using Payment Gateways.

n. Build the necessary tie-up required with Certifying Agencies for the issue of digital
certificates

o. Create a mechanism for resolution of disputes that may arise between the System
Integrator and KHDC

p. Implement policy reforms and amendments with Best practices as required for
implementation of the project

q. Engage third party experts / agencies (TPA) to perform the validation of deliverables
during project design, development, implementation, Acceptance & operations phases

r. Monitoring and managing project performance

s. Identify & nominate TPA to constitute the various committees

t. Review of performance of the vendors and stakeholders and undertake corrective

actions to achieve the project objectives

u. Coordinate with all the stakeholders and third party agencies, vendors involved in the
IT Project

v. Overall project issue & risk Management

w. Reporting project progress, successes, issues and risks to the board or directors and
support in taking corrective actions, with mitigation plans
x. Project communications management with weekly review meetings.

y. Shall also coordinate with nodal and implementation agencies for projects such as
KSWAN, HDC operators to ensure smooth implementation/integration of the KHDC
IT system.

z. Shall be responsible for coordinating and implementation of change & capacity

building programmes, responsible for guiding the teams activities concerning
stakeholder management, communications, benefits realisation, process improvement
and training for successful implementation of the IT project.

Responsibilities of SI

S.N
1.

Activity
Selection of Implementation, Audit & Certification agencies

SI KHDC
Y

Finalization of Functional Requirements for the covering all the aspects &
obtain sign-off from KHDC IT system
2.

Provide sign-off on the deliverables submitted by SI during design phase

3.

4.

5.

6.

7.

System Design, Development & implementation of the IT system

Preparing a Strategy & templates for Data Digitization & Migration as

required for the IT system implementation

System Configuration Management

Audit & Certification of the IT system

Monitor and measure the performance of the SI against the contractual

obligations
8.

Correction/ addressing the gaps identified in Audit &

9.

10.

Certification & delivery of error free system for the IT system

Training of KHDC employees for usage of the IT system

Maintenance support of the application software whenever required

11.

12.

Monitoring & Measurement of SLAs

System Overview and System Requirements

The purpose of this section of the RFP is to outline the functional overview of the IT system required
for KHDC and present a brief description of each functional module. The detailed functional
requirements specifications of the proposed IT system are discussed in later part of this document.
Design of Suggested Application Architecture: Based on the study undertaken, an Application
Architecture is envisioned that will ensure creation of a composite application that is scalable,
reliable, available and manageable and meets the requirements identified by KHDC stakeholders. The
application is designed as 3-tier/ Layered Architecture keeping with the best practices and will ensure
decomposition of services such that most interactions occur only between neighbouring layers.

The above solution architecture consists of several components as outlined below:

Interfaces and Access Channels such as Secure Layer such as HTTPS to provide
Application Software accessible to end users over Browsers

Identity and Access Management to ensure Single Sign on (SSO) and Role based
access will ensure Proper Authorization, Authentication and Auditing of Users.

Service Interface components such as middleware that enable successful delivery of

the requested services to the users.

Enterprise Content Management System/Transliteration: to manage the KHDC's

information content and manage work flows, with all its diversity of format and
location.

E-Forms to give the exact look like of manual forms to be used by various
stakeholders depending upon their service request.

Case Management as a process for collecting discrete inquiries, performing tasks,

executing processes and compile all relevant information.

Digital Signatures to be used by KHDC officials while issuing

certificates/license/permit and any other formal official communication using this
instead of the physical signatures.

Workflow Engine to manage and execute all system processes and facilitate the flow
of information, tasks and events.

MIS Reporting Engine to assist KHDC in defining and monitoring various MIS
reports.

Rule/Policy Automation to ensure consistent and comprehensive implementation of

policy and required regulations across KHDC system.

Email System to assist KHDC in managing email accounts for all internal and
selective external stakeholders.

a. Considering the key factors and requirements discussed above, the IT

application architecture below presents the key users, functional components
and interfaces with the external systems. The detailed functional requirements
of IT, covering all the functional modules below, are provided in the later part
of the RFP.

b. The application architecture has been designed to suggest the architecture

requirements of the KHDC. This architecture will be the minimum
requirement to be fulfilled by the selected system integrator (SI). The purpose
of using the following architecture is to help identify the concern areas of the
KHDC and present the technical requirements focusing on each of the concern
areas. The SI shall have the intellectual freedom to modify the architecture to a
form which it deems as better than that presented here but without
compromising on the essential technical requirements listed out.

The system will be accessed from both Intranet as well as Internet; as such we can
categorize the sets of users to Intranet and Internet users. While Intranet users will be
primarily the KHDCs employees, performing the core functions such as order
booking or bill processing etc.

The number of Intranet users will be around 350 with a time window of 10 X 7 i.e. 8
hours a day, 6 days a week. These users will be dedicated and will be performing their
core operations over this application.

The number of public users is difficult to gauge, it is expected that the number of such
users will grow with time, as more and more people start using the Application
Software. Apart from the mentioned Internet users, application systems of various
units will be accessing the IT system using Internet for downloading as well as

uploading data. Some of the users from the category of unit level staff and the
supporting officials may access the system from Intranet. The percentage of KHDC
officers may by initially less but with growing breadth of the organization, these
numbers are expected to increase.

Considering the above scenario the access to the application system can be
categorized on the basis of Internet and Intranet based accesses. While Intranet based
accesses will primarily be done by end users using the Web Application, the Internet
based access will be performed using both Web Application as well as Web Service.
While end users will use Web Application accessible over a browser, the application
systems will use Web Services.

Along with the above sets of activities the IT system exposed to the Internet would
also be hosting scheduled jobs which would be delivering contents to locations, either
through HTTP or through FTP.

Thus the exchanges between the users of the IT system and the system itself would
happen through the following modes

I.

Intranet

II.

Web Applications accessible over Browsers

III.

Internet/remote access

IV.

Web Applications/Portal accessible over Browsers Web Services

V.

FTP

VII.

Scheduled Processes for pushing data using either FTP or HTTP

Architecture Constraints

1. The application proposed has to adhere to various requirement constraints which

is essential for addressing the objectives of the KHDC, they are namely the
following,

a.

To be centrally deployed with a single data source The organization

has faced numerous problems with data maintenance and
reconciliation. This was primarily because of the fact that the most of
the IT applications being used were not integrated and were not using
the single data source. In order to ensure better control and version
management, KHDC wants to have a centrally deployed application
system connected with a single data source thus ensuring simplicity in
maintenance and lesser need of data reconciliation.

b.

Dedicated sessions hosted over the system by dedicated users

Dedicated users will be logging into the system and performing
continuous operations, this will result in greater utilization of
bandwidth as well as greater number of sessions being opened and
maintained over both application servers as well as the database
servers. The proposed system should be able to scale out and ensure
timely service delivery to its users. The system should make sure that
there is no denial of service at any point of time.

c.

Role based authorization within the system KHDC runs its day to
day functions using various roles assigned to individuals. These roles
have various capabilities and clearly delineate responsibilities of
individuals. The upcoming system should enable support for
replicating the manual process of role assignment and delegation
within itself. The system should thus be built in a manner that roles can
be created or modified or deleted, while responsibilities can be
assigned and de-assigned to such roles.

d.

Use of workflow based processing The proposed system will be used

by KHDC officials as part of their day to day work and also as part of a
process wherein multiple individuals will be working simultaneously
over a single transaction. Such a system should be workflow driven,
wherein clear delineation of individuals roles should be maintained,
such that no two persons should be able to work on a single transaction
simultaneously. Further appropriate alerts & reminders should be
generated for each individual to complete his or her pending task. The
workflow should be configurable wherein individuals roles and
position in the workflow can be modified, removed or inserted.

Relevant Technology

1. The proposed system shall be based upon cloud based web technologies so as to
enable the entire application interface accessible from the web browser. This
would require centralized deployment of the application over the web server. This
web server shall be accessible using a URL (Universal Resource Locator) address
over a port designed for transmitting HTTP (Hyper text transfer protocol) traffic
or its secured version HTTPS.

2. This will help in ensuring scalability of the application such that a new node
required to be added to the IT system would require only a web browser to
connect to the system and start accessing the application.

3.
The proposed solution should use either of the following databases, Oracle, or
MS-SQL Server. Should be using an enterprise version of the database.

Quality Attributes

1. The quality attributes define the areas where the application has to prove its value.
It is over these areas that the application system service levels would be measured.
These areas can be categorized into the following

2. System quality attributes The overall qualities of the proposed system when
considered as a whole, should include the following;

a. Supportability, meaning, the capability of supporting the IT system over its

whole product life. This implies not only satisfying any necessary needs or
requirements, but also the provision of additional software, or any other
resource required to maintain the software operationally and capable of
satisfying its function. The bidders are expected to suggest mechanisms to
be adopted by them, including processes to be adopted as well as
technologies to be deployed, so as to ensure that the IT solution has a
higher degree of supportability.

b. Testability, meaning, the degree to which a software artefact (i.e. a

software system, software module, requirements- or design document) part
of the IT system supports testing in a given test context. The bidder should
ensure that as part of its technical proposal it highlights the mechanisms to
be followed in ensuring the high testability standards of the software
application system.

3. Run-time quality attributes The qualities of the proposed system directly

expressed at run-time should include the following

a. Availability, meaning, capability to ensure higher uptime and lesser

downtime. The IT system depends upon uninterrupted performance of its
software systems to support its activities and any unplanned downtime of
such systems can result in significant costs and negative publicity. The
bidder, as part of its technical proposal, should clearly specify the
mechanism to reduce Mean time between failures (MTBF).

b. Interoperability, meaning, the ability of the system to work with other

systems without special effort from the user is a key factor within the
KHDC. The proposed application system needs to work in a
heterogeneous environment and needs to ensure that all the systems part of
this heterogeneous environment should be able to share information in a
way which it is capable to understand.

c. Manageability, meaning, proposed application software should be

designed to not only service the end users of the KHDC, but also the
software operators (IT departments or managed SIs) working for the
KHDC. Application software has to be designed with functionality to
simplify the management of the software by operations teams. The
technical proposal of the bidder should ensure that they present a
mechanism to provide a sophisticated level of manageability.

d. Performance has many dimensions; while adherence to functional & nonfunctional requirements is one major dimension for measuring
performance, another major dimension would be the responsiveness of the
system. While responsiveness of the system can be measured against
various factors, namely, end users or against scenarios or events such as
increase in peak hour traffic. The bidder should address the concerns of the
KHDC using its technical architecture and sizing documents on how it
intends to address the performance requirements of the IT system.

e. Reliability, meaning, the probability of failure-free system operation for a

specified period of time in a specified environment. The IT system needs
to have a huge component of reliability wherein it should ensure that a
certain level of performance would be delivered under any and every
circumstance. It is for the selected SI to identify the circumstances and
perform adequate sizing for meeting those. Here it should also be noted
that reliability of application in managing the data security and
transactions both between agencies as well as within the system, is an
essential component of the IT application system.

f. Scalability is a desirable property of the IT system, including, its

applications, servers, network, databases or a process, which indicates its
ability to handle growing amounts of work. The system should provide for
dynamic as well as passive scalability. The scalability should be both
vertical (scaling up), i.e. adding more resources to the system, as well as
horizontal (scaling out), i.e. adding more nodes to the system. In KHDC
parlance it refers to the following

Capability of adding more users to the system

Capability to add more processes within the system

Capability to add steps to a process within the system

Capability to add more physical tiers to the system

Capability to enhance the hardware capacity

Security, meaning, protection of information and property from

theft, corruption, or natural disaster, while allowing the information
and property to remain accessible and productive to its intended
users. The term system security means the collective processes and
mechanisms by which sensitive and valuable information within
the IT system owned by the KHDC and its services are protected
from publication, tampering or collapse by unauthorized activities
or untrustworthy individuals and unplanned events respectively.
This would include payment authorization processes, using 3rd
party payment gateways, as well.

4. Design quality attributes The qualities reflecting the design of the proposed
system should adhere to the following goals and should be demonstrated clearly
within the technical solution proposed;

a. Integrity can be defined in three terms, namely,

a. System Integrity The state that exists when there is complete

assurance that under all conditions the IT system is based on the
logical correctness and reliability of the operating system, the logical
completeness of the software that implement the protection
mechanisms, and data integrity.

b. Application integrity A critical requirement from the IT application

is to ensure that any operations it performs are performed correctly.
c. Data integrity Data integrity is data that has a complete or whole
structure. All characteristics of the data, within the system database,
including business rules, rules for how pieces of IT system data relate
dates, definitions and lineage must be correct for ensuring integrity of
the database.

d. Flexibility, meaning, the ability of IT system to change easily i.e. the

ease with which a system or component can be modified for use in
applications or environments other than those for which it was
specifically designed for. By incorporating configurable workflow
technology, business rules engine and intelligent agent techniques into
information systems, application software can be made more robust,
more cost effective to maintain, and easier to change.

e. Maintainability, meaning, the probability of performing a successful

repair action within a given time. Mean time to repair, or MTTR, is a
common measure of the maintainability of a system. The bidder, as
part of its technical proposal, should clearly specify the mechanism to
reduce MTTR.

5. User quality attributes The qualities reflecting the user aspirations from the
proposed IT system are illustrated below;

a. Usability is an important criterion for the proposed application to adhere

to. The elegance and clarity with which the interaction between the user
and the IT system should take place is an important and a subjective factor
critical to the success of the application. The usability as a factor will be
evaluated over two criteria, namely,

e. More efficient to use It should take less time to accomplish a

particular task

f. Easier to learn Operation can be learned by observing the object

g. Ease of availability of help and frequently asked questions as per the

relevance of the subject or topic

h. Alerts and popup messages for guiding the user

i. Sophistication in error handling

j. Capability to users to customize the screens and features within the

system.

6. Suggested Solution Architecture

a. The application architecture should follow the layering strategy, which is

meant to achieve logical separation of functionality of the application.
Although it is up to the SI to design and suggest physical deployment of
layers so as to achieve physical separation of functionalities.

b. The following minimum layers should be provided within the suggested

application architecture, namely,

o Presentation Layer
o Services Layer
o Business Layer
o Data Layer

7. Presentation Layer

High Level Specifications

1. The solution should be able to run on a load balanced cloud

clustered environment.

2. The solution should offer fail over capabilities, to support load

distribution and parallel execution of components across multiple
servers.

3. The solution should offer in memory caching minimizing unnecessary re-generation of pages for performance improvement.

4. The solution should provide user centered design for ensuring

minimum usage of bandwidth while providing rich features and
user experience resulting in higher user productivity. A
suggestion would be to implement AJAX extensively.

5. Should support industry standards such as XML for data sharing

as well as implementation of form validations.

6. Should provide contextual online help to users.

7. The Application Software platform should offer support for

authenticating the user with digital signature as well as simple
name/ password procedures.

8. Application should support SSL for secure communication over

web.

9. Support for a broad range of web services technology adhering to

standards, including but not limited to SOAP, WSDL, UDDI (v2
and v3).

10. The solution must support comprehensive analytics module to

tracks portal/community traffic, searched keywords, system
response time, document downloads, user turnover, visit duration
etc.

11. The solution should provide bi-lingual interface, primarily in

English and then in Kannada (Ability to Enter, Read & Print in
Kannada). The user would have choice to choose the language
option and view as well as enter contents in the language of
choice.

12. The solution should allow offline filing of forms such as accounts
details, inventory details, etc.

13. The solution should support alerts for communicating with the
user.

Services Layer

High Level Specifications

1. The solution should be based on industry standards (e.g. W3C) and should not be
limited by proprietary platforms of any kind

2. The solution should be designed with the objective of efficient service delivery to
other solution components

3. The solution should be open to interfacing with other systems for required data
exchanges and validations.

4. The solution should be able to expose its service delivery functionality.

5. The solution should have the capability of being deployed in load balanced
clusters to provide availability and scalability

6. Should support Service Oriented Architecture for service delivery.

Business Layer

High Level Specifications

1. The solution should be modular in nature with ease of addition / modification of

functional requirements / business rules.

2. The solution should be scalable in nature such that additional hardware can be
added to handle the peak loads of transactions.

3. The solution should ensure end to end process compliance and incorporation of all
functional requirements.

4. Should be able to initiate appropriate workflows based on applicable business

rules.

5.
The solution should be able to enable / disable workflows for processes /
process segments as desired by the functional requirements.

6.
The workflow system should allow dynamic configuration of entities and
users within the application.

7. The solution should be able to define process hierarchies and there should be no
limitation on the number of levels in the hierarchy. While each hierarchy would be
related to roles and each roles assigned responsibilities. The configuration of such
hierarchies should be possible from within the application at run-time.

8. The solution should be able to perform all necessary validations.

9. The solution should support XML (industry standard) based messaging and
communication.

10. The proposed solution should interface with email systems supporting SMTP for
sending out notifications as an additional notification medium over and above
notifications within the system.

Data Layer

High Level Specifications

1. Should be able to store 5TB of data and should be scalable up to 50 TB for the
next 5 years after go-live.

2. Should be able to support high levels of concurrent usage and should be scalable
for the next 5 years after go-live.

3. Should be configured in a clustered mode to ensure high availability and load

balancing / failover.

4. The database schema should be designed in an efficient manner and should have

the ability to incorporate the appropriate normal form of database design.

5. There should be no multiple instances of the same information stored.

6. If any local database / templates are maintained at the units, it should be ensured
that the database schema is uniform across all locations and is same as that of the
central database. Further there should be controls so that the schema at these
locations cannot be changed.

7. There should be proper facilities to define backup schedules from the application
interface.

8. The application should have proper data archiving facility.

9. The application interface should be clearly able to define user roles within the
database.

Critical Requirements

The application proposed by the bidder should be:

1. Based on current state of the art technical platforms

a. SI is restricted to use Microsoft dynamics/Oracle dynamics or SAP Erp to

implement. The SI should not be using open source open source alternatives.
b. SI can develop an custom ERP system from scratch to meet the requirement.

Design Issues

There are several common issues that should be considered while designing the
application. These issues can be categorized into specific areas of the design. The
following sections provide guidelines for the common areas where focus should be
provided in the proposed system:

Caching The proposed application system should include both data level caching
and page level caching. While data caching would ensure creation of cached data
elements over the web server or integration server, the page level caching should be
done at the client system.

Communication The proposed application system should ensure robust and reliable
communication between entities within the system as well as entities outside the
system. Communication can be performed using various mechanisms such as data
sharing, emailing, mobile medium, etc.

Composition Compositions are basic building blocks of data structures. The system
should build complex data objects using simple objects and data types. The system
should emphasize on data and object composition

Exception Management The proposed application system should include Exception

management at various levels. Whereas it should be possible to switch from one level
to another for greater scrutiny of the application performance. Escalation management
should also include escalation procedures.

Navigation The interfaces of the application should have a robust navigation system
inbuilt within it, such that it should be possible to move from one segment to another
segment of the system with ease and without compromising security or data integrity.

User Experience The proposed application should be capable of providing unique

user experience in terms of

Look & feel

Access & approach

Content and availability

Help & guidance

User Interface The user interface should be easy to use and understand and should
support two languages, Kannada and English. Locatability would be one important
condition for judging the quality of an interface. Locatability is the property of a
system which qualifies its capability in helping users identify and locate relevant
information on a timely manner within the system.

Validation The proposed solution should ensure high standards of quality of the data
being fed into the system. In order to ensure this there should be thorough validation
of data being fed into the system. The validations can be built in as a plug-in to the
system such that required changes are implemented as and when required.

Authentication The authentication process should guard the entire IT system against
unauthorized attempts of access. This process should not look at the application as a
separate entity but as part of the entire IT system whose access and control procedures
have to be governed and managed centrally as a single whole.

Authorizations The authorization to the entire IT system should be governed using a

single policy. Roles should be defined such that it should govern the authorization of
users for various activities conducted over the entire IT system of the KHDC.

Interoperability The system should be capable of working with diverse systems in a

harmonious manner

State Management The system should maintain the state of each access to the

system across multiple requests and messages. This will hold good for both human
users of the system as well as the other IT systems which interact with application
software.

Security Requirements

Given below is the set of requirements, which the proposed system and the SI should
implement so as to mitigate all forms of threats to the IT system.

1. Information Security

Physical Security

The physical security of the proposed solution should cover both:

The centralized hub

O
The unit offices The end offices of the KHDC would host the desktops and
other infrastructure as mentioned in the earlier section. The SI should suggest physical
security at the offices if required.

Application Security

Internal Users (KHDC Users / Operators) should not be able to login to the
application, without providing login credentials and digital certificate.

The application should have capability to enforce required password

policy (e.g. minimum password length, complexity requirements,

password age etc.).

The application should lock out user Id after performing a configurable

number of unsuccessful attempts.

Application user Authentication & authorization related transactions

should be encrypted.

Application should restrict to authenticate a user whose password has

expired until the user changes the expired password.

The application should display an appropriate message upon successful

login or and a warning after failed login attempt.

The application should enable the creation of different user groups, and the
assignment of different privileges to each group.

The application should support role based access control to enforce

separation of duties.

The application should display the last login status

(successful/unsuccessful, time) to the user.

In case the system is being accessed by other systems / web services /

interfaces, the system should perform due authentication.

It is preferred that no direct access to the database is provided to any

external agency unless required and approved by the KHDC.

Any uploaded file to the application system should be scanned thoroughly

before allowing the uploaded file to reach IT application system for

storage.

The application should implement for Maker-Checker concept wherein a

user who creates a record or request should not be able to approve or
update the record or request.

Audit Trails & Logs

The SI and the KHDC should agree on a timeframe for which old audit
logs will be maintained for ready reference in the system. The old records
may be archived.

The application should log all application transaction details including

time stamp, operator, approver IDs, update/modification trail etc.

The application should protect its audit records from unauthorized

deletion, modification, or disclosure.

Data Protection

The application should store password and other key data content in encrypted form.

Session Management

The application shall limit to only one session per user or process ID

The application shall put a limit on the maximum time length of an idle
session, which should ensure that automatic session termination takes
place after expiry of the specific time length. This maximum time length

would be 15 minutes during non-peak hours while 10 minutes during peak

hours. Mechanism of calculating peak hours is defined in the scope of
work.

The system should provide capability to modify the maximum time length
of idle sessions dynamically.

The application users should be able to explicitly terminate a session

(logout).

The application should not store authentication credentials on client

computers after a session terminates.

ApplicationDeployment

Basic hygiene check (security check) shall be done for the Operating
system on which the application is installed.

All unused ports, both software and hardware, should be blocked at client
PCs and at Server machines.

The application server should be protected with appropriate Antivirus

software.

Any version upgrade / changes in application software shall not be

performed on the production server directly without appropriate
methodologies of staging in testing environment.

Any version upgrade/ changes in application shall be implemented in

staging / test server. The application shall be migrated to the production
environment only after adequate testing and approval from the KHDC.

Backup & Recovery

The backup and restoration policy should be framed and provided to the
KHDC as a deliverable by the SI.

The SI shall be responsible for taking backup of all data that is stored
within the new system in accordance with the backup policy.

The SI shall implement the required backup solution for regular /

scheduled backups.

A backup schedule shall be prepared by the SI and the same shall be

implemented with approval of the KHDC.

Operational Requirements

This section sets out the operational requirements of the IT project including project
management requirements, procurement & transportation requirements, solution
maintenance & support requirements, etc.

Operational requirement specifications

GENERAL MANAGEMENT

1. System Integrator (SI) shall implement and manage the IT solution in accordance
with the service level metrics defined for the project, as stated in this RFP.

2. SI shall coordinate and provide complete support to KHDC in conducting the

solution, including software components, acceptance testing and certification.

3. The SI shall assist the IT Project in operation of User Registrations within the
KHDC IT system.
4. The SI shall provide software support from the Go-Live* date for overall
system stabilization, software maintenance, solution maintenance and end-user
problem resolution. The operational support will have to ensure that the IT
solution is functioning as intended and all problems associated in operation of the
application system are resolved immediately. Such support shall be provided till
the end of the contract period which would be 5 years.
5. The SI shall assist KHDC in facilitating third party audit of the system or any
other audits ordered by the KHDC, TPA etc. The SI shall spare the resources,
share the documents, create test cases, etc. as per the audit requirements for
facilitating the audit by third party.
6. The SI shall submit fortnightly reports to the KHDC, on all operational issues
faced during the period. Such types of reports shall be related to

o Uptime of the software system

o Schedules of system health check-up activities carried out.

o Database Management activities carried out including backup, fine

tuning, security drills, log review, etc.

o Adherence to SLAs or any breach recorded.

o Any other report specified during the operational phase.

7.

Apart from the above fortnightly report, the SI should submit a daily report on
availability of all services at all nodes and basic health check-up of application.

8. For each application/ module installed, the System Integrator is required to train
the KHDC staff, (technical, end-user staff and system maintenance) and
otheragencies, identified by KHDC, to enable them to effectively operate the
system The System Integrator shall also be responsible for re-training the users of
the system whenever changes or upgrades are made in the application. The SI

shall prepare the training material and host it in the website for free down load by
the end users.

Preparation of documents including User Manuals, Operational Manual

Maintenance Manuals, etc. as per acceptable standards both in English and Kannada.

The SI shall assist the KHDC in rolling out Change Management initiatives
undertaken to ensure smooth roll-out of the Project.

PROJECT MANAGEMENT (Only during implementation and roll-out)

Create an organized set of activities for the project in the form of a Project Plan in
accordance with the timelines set as per Section 9 of RFP.

Establish and measure resource assignments and responsibilities within the project
plan.

Measure project deadlines, budget figures, and performance objectives within the
project plan.

Help communicate the project plan to stakeholders with meaningful reports. During
the project implementation the System Integrator shall submit to the KHDC, the
following reports:

Results accomplished during the period;

Cumulative deviations to date from schedule of progress on milestones as

specified in Section 9 of the RFP read with the agreed and finalized Project
Plan;

Corrective actions to be taken to return to planned schedule of progress;

Proposed revision to planned schedule, provided such revision is necessitated

by reasons beyond the control of the SI;

Other issues and outstanding problems, and actions proposed to be taken;

Submit progress reports on a fortnightly basis

Provide reports on interventions which the System Integrator expects to be

made by the KHDC and/or actions to be taken by the KHDC before the next
reporting period;

Project quality assurance reports etc.

TECHNICAL DESIGN & ARCHITECTURE

1. The SI shall execute the basic and detailed design and the implementation
activities necessary for successful installation of the System in compliance
with the provisions of the Contract, or and where ever not so specified, in
accordance with good industry practices.
2. The SI shall be responsible for any discrepancies, errors or omissions in the
specifications, drawings, and other technical documents that it has prepared,
whether such specifications, drawings, and other documents have been
approved by the KHDC or not, provided that such discrepancies, errors, or
omissions are not because of inaccurate information furnished in writing to the
SI by or on behalf of the KHDC.

APPROVAL OF DELIVERABLES

1. The SI shall provide the KHDC with all deliverables as mentioned under the
scope of work, technical requirements and in any other form within this RFP.

2. The SI shall ensure that all deliverables are approved by the KHDC or its
authorized representatives. In case the KHDC does not approve the deliverable, it
would be the responsibility of the SI to ensure that it understands and implements
the concerns of the KHDC w.r.t. the deliverable and submits the updated
deliverable for the consideration of the KHDC. It will be the responsibility of the
SI to ensure that each of its deliverables are approved and signed off by the
KHDC.

SOLUTION MAINTENANCE

1. The System Integrator shall provide support and software health checkup for
the application solution software for the duration of Fifty four months,
commencing from the date when the system goes live i.e. (go-live* + 54
Months). The warranty should include that the solution supplied under this
Contract shall have no defect arising from design or workmanship or from any
act or omission of the successful bidder that may develop under normal use of
the supplied solution.
2. During the warranty period, System Integrator shall be completely responsible
for defect free functionality of IT application software and shall resolve any IT
solution related issues including bug fixing etc within the duration agreed to
between KHDC and the System Integrator.

3. The System Integrator shall provide the latest updates, patches/ fixes, version
Upgrades relevant for the IT solution components. These would include all
COTS products supplied as part of the contract.

4. System Integrator shall be responsible for software version management,

software documentation management reflecting current features and
functionality of the solution.

5. During the warranty period, System Integrator shall be responsible for any
upgradations / modifications to the application module/ software, which would
be taken up as a change request.

6. The SI shall be responsible to upgrade the application software in such a way

that any versions of upgrades released by the OEMs, of products on which the
software is dependant, from time to time can be acceptable without causing
any additional costs and without disturbing its functionality.

7. In the event that such upgradations require the improvement of the application
it will be the SIs responsibility to do so without any additional cost burden to
the purchaser.

TRAINING OF SYSTEM ADMINISTRATION SERVICES

1. This includes the training the KHDC staff on design of an appropriate System
administration policy with precise definition of duties and adequate
segregation of responsibilities and obtaining the approval for the same from
the KHDC.
2. System Administration includes the following activities:
a. Training on performance tuning of the system as may be needed to
comply with
b. SLA requirements on a continuous basis.
c. Training on Security management including monitoring security and
intrusions in to the solution.
d. Training on monitoring and tracking, server and network performance
and take corrective actions to optimize the performance on a daily
basis.
e. Escalation and co-ordination with other vendors for problem resolution
wherever required.
f. Training on system and database administration tasks, such as
managing access control system, creating and managing users etc.
g. Training on data storage management activities including backup,
restore and archival etc.

h. Attend to KHDCs user request for assistance related to usage and

management of ITsolution.

i. Training on creation and maintaining the daily back-up and related

data.

3. Other important activities shall include but not be limited to:

Daily maintenance of the system configuration

Implementation of system security features

Overall security of the network

Day to day disk space management

Tracking servers performance and take remedial and preventive actions

in case of problems

Proper upkeep of storage media for taking backups

Project Bidding & Implementation Schedule

1. The following table indicates the key mile stones for the proposed engagement (s)
including the schedule for bidding process and for implementation of the IT
system. T as referred in the table below is the Date on which the RFP has been
issued by KHDC.
2. Bidding timelines
3.
S. No.

Milestone

1. Date of issue of Request For Proposal (RFP)

2. Last date for Submission of Written Questions by bidders

25.02.2014

10.03.2014 Up
to 11.00 am

05.03.2014 at
11.30 am
3. Pre- Bid Conference

4. Tender Scrutiny Committees Response to bidder Questions

11.03.2014 up to 3.30 pm

12.03.2014 up to 3.00 pm
5. Due Date for Submission of Proposals

14.03.2014 at 3.30pm
6. Date of opening the Technical Proposals

7. Date of opening the Commercial Proposals

15.03.2014 at 11.30 am

8. Contract Finalization and Award

Will be intimated

Project Deliverables, Timelines & Payment Schedule

Following table details the key project milestones, deliverables to be submitted by SI at each
milestone and relevant payment to be provided by KHDC for completion of each milestone by SI. The
project is proposed to be implemented on a CAPEXOPEX model and CAPEX payments to the
System Integrator shall be made as per milestones achieved prior to go-live, here it should be noted
that the payment of maintenance support phase cost incurred during pre-go-live would be paid after
go-live; is achieved and would be considered as a capital expenditure. Subsequently OPEX payments
would be made, starting go-live, on a quarterly basis based on the performance of the services
provided by the SI in line with the project SLAs indicated in this RFP, requirements stated in RFP and
its annexure, timelines provided under this section.
#
1.
2.

Milestone

Deliverables from SI

Timelines

Contract sign-off.

PBG for 10 % of total contract value.

Contract
Sign-off (T)

Submission of SRS document for

IT system.

System Requirement Specifications

(SRS)

T+
6Weeks

Document.
3.

Sign-off from KHDC on SRS.

None (Deliverables for this milestone

shall be responsibility of KHDC and is
dependent on conformity of SIs
performance against the above mentioned
activities and milestones).

T+8
Weeks

4.

Submission of System Design

Technical / System Design Document

including but not limited to :

T+
9Weeks

Document.

Logical and Physical Data base Design.

Logical Data Dictionary and data / file
formats.
Component and Deployment Views of
the Application. Collaboration, Class
diagrams in the UML notations.
Security and Features.
Performance Features.
Interface / Control Design Features.
Traceability Matrix.
Data Migration Plan.
5.

Capturing of data digitization &

Data Digitization and Migration Plan

T + 11

Milestone

Deliverables from SI

data migration requirements

Timelines
weeks

6.

Sign-off from KHDC on system

design documents.

None (Deliverables for this milestone

shall be responsibility of the KHDC and is
dependent on conformity of SIs
performance against the above mentioned
activities and milestones).

T+
11Weeks

7.

Submission of change

Change Management Plan

management plan and

Training Plan

T+
11weeks

Training Plan.
8.

Handing over of all existing

information for digitization and
migration

All physical documents to be digitized.

9.

Submission of Testing Approach

& test cases documents for third
party security audit & UAT.

Document on Testing Approach for IT

Software, along with the test cases
including but not limited to: Type of
Inputs (functional /performance / stress /
Acceptance /structural) also including
Test Coverage / boundary conditions.
Machine Configuration. Test
Assumptions. Exact test stimuli as
applicable. Response Time / Execution
Time / Throughput.

T + 13
Weeks

10

Sign Off on Testing Approach &

test cases documents, for third
party security audit & UAT, by
the KHDC.

None (Deliverables for this milestone

shall be responsibility of KHDC and is
dependent on conformity of SIs
performance against the above mentioned
activities and milestones).

T + 14
weeks

All digital information to be migrated.

T + 12
weeks

Milestone

11

Development of software,
Implementation/ configuration
/configuration /
customization and submission for
acceptance testing & UAT of the
following modules of the
application software
a.Production & Processing
b.Quality Control
c.Marketing Management
d.Inventory Management
configuration /

Deliverables from SI
Configure/ customize, test modules of the
IT software (Note: before submission of
software for third party acceptance testing
& UAT, the SI should perform in-depth
internal testing and should address all the
gaps identified during such internal
testing).

Timelines
T + 30
Weeks

Reports on Various Tests performed over

the modules of IT system along with the
results & resolution reports for the issues
identified during Testing.
One complete workflow should be
developed and implemented starting from
weaver till retail outlet and this flow
should be seamlessly working(Phase1)

customization and submission for

acceptance testing & UAT of the
following modules of the
application software
a.Production & Processing
b.Quality Control
c.Marketing Management
d.Inventory Management
e.Financial and Management
Accounting
f.Admin &Human Resource
Management/Secretarial & Legal
Section
g.Projects
h.Workflow and MIS system
12

Submission of Third Party

and User Acceptance Testing
Reports all modules and
Submission of Digitized
Records for Review and

None (Deliverables for this milestone

shall None (Deliverables for this
milestone shall be responsibility of
KHDC and is dependent on conformity of
SIs performance against the above
mentioned activities and milestones).
Submission of printed records of digitized
data for review and validation by KHDC.

T + 36
Weeks

Milestone

Deliverables from SI

Timelines

Validation.

13

End user training for pilot stage

Completion of Training for all the users in

a phased manner. This will see training
being imparted to pilot stage users on the
four modules.

T + 40
Weeks

Change Management Workshops

including presentation materials and
related documents.
Training & User Manuals.
14

Go-live of IT software for

Stage 1 and stage 2

15

End user training for

rollout phase.

Defect free IT system along with source

Code, library files, DLLs, Setup
programs, Documentation, etc. for the
modules.

T + 43

Completion of Training for all the users in

a phased manner. This will see training
being imparted to users on application
software modules covered. Change
Management Workshops including
presentation materials and related
documents.

T + 44

Weeks

Weeks

Updated Training & User Manuals.

16

Rollout stage with

Rollout of modules of application

software across all locations covered.

T+
45weeks

Submission of Project

Submission of System administration,

T + 46

Documentation for review by

configuration, training, user manuals,

Weeks

Third party agency*.

security policy and other project related

documentation.

commencement of
operations in the KHDC.
17

18

Submission of Feedback by

None (Deliverables for this milestone shall

on conformance of SIs performance
against the above mentioned activities and
milestones).

T + 47
Weeks

Milestone

Deliverables from SI

Timelines

19

Submission of Third Party

None (Deliverables for this milestone shall

be responsibility of the KHDC and is
dependent on conformance of SIs
performance against the above mentioned
activities and milestones).

T + 47

The entire system with 1 months

satisfactory functioning in a integrated
environment.

T + 48
Weeks

Post Implementation Support to KHDC.

To
commence
from T
+48weeks

Review Reports for Project

Documentation.
20

Acceptance Go-Live after

burn testing of the system

Weeks

for 1 month.
21

Quarterly Maintenance Support

Daily/Weekly/for-nightly/monthly
Performance Monitoring Reports for the IT
system.
Quarterly software health checkup Updated
system design documents, specifications.
.
Latest source code, application deployment
files, configuration files for entire solution.
Updated user manuals, administration
manuals, training manuals etc.
Software change logs etc.

At the end
of Each
Quarter
during
Maintenance
phase

Key Notes for above Table:

Go-live is a date, 1 month after the proposed IT system has been made completely operational, in its
entirety, as per the requirements provided in this RFP across all KHDC locations. Within this period
of 1 month, acceptance go-live would be provided. The acceptance go-live period would be utilized to
review the impact of the application software and its adherence to the project objectives set out in this
RFP and would be also be used to stabilize the application software and review the performance of the
application software in terms of its capacity to handle load and its error free operations.

The timelines mentioned for each milestone, occurring before the go-live, can be negotiated between
the SI and the KHDC and minor adjustments to the timelines can be performed without impacting the
overall go-live. In such circumstances the Implementation & Rollout SLAs will get modified
accordingly. Such changes have to be signed off, by the SI and the KHDC, as part of the contract.

c.
Penalties shall be levied by the KHDC for delay in completion of the milestones. The
details of the penalties are specified in the Service Level Agreements section.
It is to be noted that upon completion of Go-live the SI is required to submit the updated source code
and any document, which may have undergone changes after their initial delivery, as per the
milestones. Further, at the end of each quarter of maintenance support, SI is required to submit all the
updated system design documents, specifications, source code, application deployment files, user
manuals, administration manuals, software change logs and all other applicable deliverables, which
may have undergone changes as a result of any change control note getting executed during that
quarter.
The Go-live of solution shall be upon certification of the IT project by the third party agency. SI is
required to address all the gaps identified during the testing to the satisfaction of the KHDC prior to
Go-live.
All the documents/manuals shall be kept up to date by the SI based on the changes to the system
functionality performed during the contract period. The revision history shall be maintained by SI for
all such changes. Further the SI should, as and when required, submit an updated version of all
documents/manuals incorporating all such changes or updations which may have taken place over the
documents as a result of knowledge gained or user experience and related feedback of the documents.
The payment during maintenance support phase (Year 1 - 5 of implementation) is also subject to
successful demonstration of SLA measurement process/ reports for the SLAs. The SI shall
implement/ customize/ develop any additional tools to record and reports the performance indicators.
The SLA reporting tools/process implemented by the SI is subject to a Third party review and SI shall
address any issues identified during such third-party review for achieving the eligibility for this
payment.

A deliverable would undergo multiple iterations before it gets approved. Iterations would involve
review by the KHDC and modification of the deliverable by the SI, accommodating the suggestions
provided. The SI needs to plan accordingly. Each milestone would be an iterative process and need
not be considered as a one-step activity. Selected SI would be encouraged to complete each milestone
in a staggered manner by submitting completed portions of their deliverables as and when they feel
appropriate without having to wait for the entire activity to get over.

Payment Schedule

Following table details the key Project milestones, deliverables to be submitted by the SI at each
milestone and relevant payment to be provided by KHDC for completion of each milestone by SI.

The business model of the project ensures milestone based payment, on capital expenditure
incurred by the vendor against all system software and application software procured.

Points to be noted are

Software CAPEX will consist of Cost of the License, Configuration and Customization +
Cost of the Training + Cost of the data digitization & migration + Cost of system software.

Solution Deployment Model

Following presents the illustrative deployment model for the IT system for the KHDC.
1. System Integrator is required to procure and implement necessary application
software and authentication systems for the IT system.
2. This view suggests the deployment of the application system should be done in
the de-militarized zone.
3. The KHDC would like to ensure capability to perform vertical enhancements i.e.
increasing the processing capabilities as well as memory capabilities as and when
required by the system. This should be possible without large investments or a
large amount of downtime. The bidders would be rated upon the quality of
suggestions made in the technical proposal for ensuring such a feature.

4. The deployment model projects the following minimum requirements from the
solution proposed by the bidders

Requirement of high availability using clustering for failover and load

balancing at every level.

Capability to use unutilized idle resources of less used zone, such as

Internet zone or the Intranet zone, to support peak loads over either of the
zone.
Provision for content management server hosting the KHDCs website.
Provision for SMTP server for hosting KHDCs email relaying system
within the Internet zone.
Provision for Integration server for ensuring connectivity with the external
agencies for information sharing, within the Internet zone
Provision for database servers as a single data repository located in the
secured zone
Provision for management control of all the servers using a management
server
Provision for directory server of unified IT resource and user management
ssssand certificate server for PKI implementation.

Use of domain controller at hosting site and additional domain controller

at respective offices which should exchange the global catalogue
frequently. This is perceived as a mechanism to ensure that bandwidth
consumed during authentication. Further domain controller and additional
domain controllers should be used to enforce group policies over users,
computers and devices.
Provision for Intrusion Detection and Prevention System.
Provision for firewalls.
Linear Tape One (LTO) 4 technology should be used for providing
magnetic tape backup.
All equipments must operate on voltage range and frequency range, 220v
+/- 20v, 50Hz +/-2Hz and must include power plugs standard in India.

Unless otherwise specified, all equipment must operate in environments of

10-45 degree centigrade, 20-90 percent relative humidity, and 0-40 grams
per cubic meter of dust.
All information technologies MUST properly display, calculate, and
transmit date data, including, but not restricted to 21st-Century date data.
Unless otherwise specified, all equipment must operate at noise levels no
greater than 55 decibels.
All electronic equipment that emits electromagnetic energy must be
certified as meeting, US FCC- class B and UL or equivalent, emission
standards.
Core switch at Main hosting site and DR site acts as Core/Distribution
layer and provides aggregation of server farm and user access switches. It
provides multi-layered, high speed scalable and fault tolerant connectivity
to various access layers.
The Hardware & Software should be compatible for interoperability with
each other.
Each device should have a power supply efficiency of 80% or more.
The KHDC does not intend to have any link load balancers as part of this
contract. Any WAN related hardware is beyond the scope of this tender.

Bid Details Terms and Conditions

Instructions to Bidder

Request for Proposal

This Request for Proposal (RFP) for the design, development, implementation and
maintenance of an IT solution is issued by the Karnataka Handloom development
Corporation through the e-Procurement portal of the Government of Karnataka. The intent of
this RFP is to invite proposals from the agencies (also referred to as bidders) to enable the
KHDC to select a System Integrator (also referred to as Implementation Partner) for the IT

project.

Acknowledgment of Receipt
Bidders are not required to acknowledge the receipt of the RFP as they may download the
same from the e-Procurement portal of the Government of Karnataka.

Bidding schedule Key dates

The Tender Inviting Authority would by and large follow the bidding schedule as given in the
following table. The KHDC reserves the right to modify the schedule. However, any changes
to the schedule would be prior notified either through a letter or hosted in the website or
through email to all agencies.

Contact Details
For any clarifications & communications with reference to the bid documents, the bidders are
expected to communicate at the contact information as provided below.

on-Disclosure Agreement

The bidders must sign the Non-Disclosure Agreement as per the prescribed format supplied
by KHDC. The Non-Disclosure Agreement of the selected system integrator will form part of
the Contract Agreement.

Licensed Products and Services

The selected system integrator would be required to obtain license / authorization for any
software or services to fulfill its performance obligations under this contract. In case of any
infringement on this by system integrator, KHDC will not be responsible for the same.

Concessions Related to KHDC Projects

At no stage of the project, KHDC would provide any form or certification or undertaking,
which the bidders / the selected system integrator might ask for getting concessions / benefits
in various activities due to KHDC related work.
Cost of Proposal

The bidder is responsible for all costs incurred in connection with his participation in the bid
process, including, but not limited to, costs incurred in conduct of informative and other
diligence activities, participation in meetings/discussions/presentations, preparation of
proposal, POC, in providing any additional information required by the KHDC to facilitate
the evaluation process, and in negotiating a definitive Service Agreement and all such
activities related to the bid process. This RFP does not commit the KHDC to award a contract
or to engage in negotiations.

Pre-Bid Conference
The KHDC will host a Pre-Bid Conference, on 05.03.2014 at 11.30 am at KHDC Regional
office, Halasoor, Bangalore. Any change in the date, time and venue of the conference will be
intimated to all bidders through an e-mail. The representatives of the respective organizations
may attend the pre-bid conference at their own cost. The purpose of the conference is to
provide bidders with information regarding the RFP and the proposed solution requirements,
and to provide each bidder with an opportunity to seek clarifications regarding any aspect of
the RFP and the IT Project. Request for clarifications should reach the KHDC either through
email/fax/post (in the format specified) not later than two days before the pre-bid conference.
All requests shall be addressed to the contact person at KHDC.

Bidder Inquiries and KHDC Responses

a. All enquiries from the bidders relating to this RFP must be submitted
in writing exclusively to the contact person notified in section 10. The
mode of delivering written questions would be through post or email.
Under no circumstances shall KHDC be responsible for ensuring that
bidders inquiries have been received by KHDC.

b. KHDC will endeavour to provide a complete, accurate, and timely

response to all questions, to all the bidders. However, KHDC makes no
representation or warranty as to the completeness of any response, nor
does the KHDC undertake to answer all the queries that have been
posed by the bidders. All responses given by the KHDC will be
distributed to all the bidders.

Supplemental Information to the Request for Proposal

a. If KHDC deems it appropriate to revise any part of this RFP or to issue
additional data to clarify an interpretation of the provisions of this RFP, it
may issue supplements to this RFP in the form of Addenda / Corrigenda.
Such supplemental information will be communicated to all the bidders
either by e-mail or will be published in the website. Any such supplement
shall be deemed to be incorporated by this reference into this RFP.

Amendment of RFP Documents

At any time prior to the deadline for submission of Proposal, KHDC may amend the RFP
documents by issuing suitable Corrigendum issued through its website/notification in
newspapers. To give reasonable time to the bidders, so that they can take corrigendum into
account in preparing their Proposals, the KHDC shall extend (if necessary), the deadline for
submission of Proposals.
Language of Proposal
The Proposal, and all correspondence and documents related to the Proposal exchanged by
the bidder and the KHDC should be in English. Supporting documents and printed literature
furnished by the system integrator may be in any language other than English provided they
are accompanied by an accurate translation of the relevant passages in English language.
Supporting material, which is not translated in English, will not be considered for evaluation.
For the purpose of evaluation and interpretation of the bid proposal, the English language
translation shall prevail.

KHDCs Right to Terminate the Process

a. The KHDC makes no commitments, explicit or implicit, that this process
will result in a business transaction with anyone.
b. This RFP does not constitute an offer by the KHDC. The bidders
participation in this process may result in the KHDC selecting the bidder
to engage in further discussions and negotiations towards execution of a
contract. The commencement of such negotiations does not, however,
signify a commitment by the KHDC to execute a contract or to continue
negotiations.

Bid Security
a. Bidders shall submit, along with their Bids, Bid Security(EMD) of Rs. 3,00,000
(Rupees Three Lakhs only), and shall be paid as per terms of the e-Procurement
system
b. The bid security of all unsuccessful bidders submitted with the EoI(Expression of
interest) would be refunded without interest by KHDC within one month from the
date of signing of the contract with the successful bidder. The bid security, for the
amount mentioned above, of successful bidder would be returned without interest
upon submission of Performance Guarantee.
c. In case bid is submitted without bid security as mentioned above then the KHDC
reserves the right to reject the bid without providing opportunity for any further
correspondence to the bidder concerned.

Venue & Deadline for submission of proposals

a. All interested bidders shall pay EMD and Tender Processing fee and submit their
Technical and Commercial responses electronically using the unified e-Procurement
platform of the Center of E governance. The URL of the e-Proc portal is:
http://www.eproc.karnataka.gov.in .
b. Bidders shall submit the tenders only through the unified e-Procurement system
before the scheduled date and time for bid submission. The KHDC will not be liable
or responsible for any delays due to unavailability of the portal and the internet link.
c. Since the submission of the proposals shall be through the e-Procurement System of
Government of Karnataka, all bidders shall register themselves in the e-Procurement
system and all terms and conditions applicable for bid submission through e-

Procurement shall be applicable for this bid also.

d. Last Date & Time for submission of bids is 13.03.2014_up to 3.00 PM.

e. The Tender Inviting Authority may, in exceptional circumstances and at its discretion,
extend the deadline for submission of proposals by issuing an addendum or by
intimating all bidders who have been provided the RFP, in writing or through e-mail
or post on the website. In this case, all rights and obligations of the KHDC and the
bidders who have been previously subjected to the original deadline will thereafter be
subject to the extended deadline.
f. The Bidders shall submit an electronic copy of performance bank guaranteeof amount
equivalent to 5% of total contract value, project plan, invoices etc. online in the eprocurement platform. The bidders shall have provision to view the status of the
invoices of for all contracts handled online. Selected bidder has to pay transaction fees
for using e-procurement platform to handle post tendering activities. Refer to the eprocurement platform for details.

Late bids

a. Bids received after the due date and the specified time (including the extended period
if any) for any reason whatsoever, shall not be entertained.

Bid Opening
a. Technical Bids will be opened on 14.03.2014 at 3.30pm through the process defined
in the e-Procurement System of Government of Karnataka. The bid is a 2 cover
system comprising of technical and financial bid. Only candidates who qualify for
technical bid will be entertained for financial bid. The say of KHDC is final in this
matter.

Proposal Instructions and Conditions

a. Proposals must be direct, concise, and complete. All information not directly relevant
to this RFP should be omitted. The Tender Scrutiny Committee will evaluate the
bidders proposal based on its clarity and the directness of its response to the

requirements of the project as outlined in this RFP. To assist in the preparation of

proposal, the Tender Inviting Authority is making available an electronic version of
this RFP.

The Proposal submitted by the bidder shall comprise the following -

1. Proposal covering letter (covering letter is set forth in the later

part of this RFP);
2. Tender Processing Fee;
3. Bid Security;
4. Technical proposal in the format as specified in later part of this
RFP;
5. Detailed Bill of Materials required for Software implementation
6. All the tools and technologies proposed for the project;
7. Affirmative Statement on the existence of, absence of, or
potential for conflict of interest on the part of the bidder or any
prospective sub-contractor due to prior, current, or proposed
contracts, engagements, or affiliations with the KHDC.
8. Financial bid as specified in this RFP. The bidders also may
share the supporting information on financials that can provide
rationale for the prices quoted;
9.

A board resolution / Letter of Authority authorizing the bidder

to sign/ execute the proposal as a binding document and also to
execute all relevant agreements forming part of RFP;

10. Declaration stating zero outsourcing.

11. Declaration of any potential conflict of Interest with the KHDC.
12. Any other information that is required to be submitted in the
proposal process.

Technical Proposal

a. The technical proposal should contain a detailed description of how the bidder will
provide the required services outlined in this RFP. It should articulate in detail, as to
how the bidders Technical Solution meets the requirements specified in the RFP. The
technical proposal must not contain any pricing information. In submitting additional
information, please mark it as supplemental to the required response. If the bidder
wishes to propose additional services (or enhanced levels of services to the KHDC)
beyond the scope of this RFP, the proposal must include a description of such services
as a separate attachment to the proposal and how it will enhance value to the
customer.

b. The technical proposal should be structured according to the technical evaluation and
should address the following at the minimum:

Past performance and relevant experience

Experience in design, development & implementation of Software Solution proposed.

Experience in managing facilities in relevant projects.

Experience in managing projects with more than 200 man months of software
development, testing and configuration efforts invested. This effort can contain the efforts
invested in performing project management, requirements analysis and documentation.

Manpower & Personnel proposed for the project

Project / Engagement Manager proposed for the project.

Design and Development team proposed for the project.

IT training manager proposed for the project.

Technical solution and its compliance with requirements, with the following details,

Bidders understanding of the requirements.

The Solution Architecture proposed by the bidder.

The Application Software proposed by the bidder.

System Software proposed by the bidder.

System Quality Assurance procedures followed by the bidder.

Inventory management mechanisms proposed by the bidder.

SLA Monitoring & Reporting strategy proposed by the bidder.

Security Architecture proposed by the bidder.

Management Information System proposed by the bidder.

Backup & Restoration policies and procedures proposed by the bidder.

Plan for implementing Business Continuity Management.

Management Controls proposed for the project, including the following details.

Approach & Methodology planned for adoption for successful execution of the
project.

Project planning methodologies proposed for the project.

Assessing Project Risks & Mechanism of mitigating those risks.

Handling change management during project rollout.

Bidder must provide the following information:

Description of prior experience and expertise of the resources in the organization that would
enable the organization to provide robust and standardized products and services;

Resumes of manager(s) responsible for the management of this project, highlighting pertinent
experience.
Profile of bidder personnel who would be directly assigned to provide services pertaining to
this contract and the specific function each individual would perform;
All the resumes of the proposed team should be given in the format provided in as specified
in the RFP.

Financial Proposal
a. Unless expressly indicated, the bidder shall not include any technical information
regarding services in the financial proposal. Additional information may be submitted
to accompany the proposal. While submitting additional information, please mark it
as supplemental to the required response. Prices shall be quoted entirely in Indian
Rupees.
b. The bidders shall mandatorily quote for all the requirements of IT Implementation,
including any items which are not identified in the formats provided for the successful
implementation of the project and subsequent maintenance inline with SLA.
c. During the proposal preparation, the SI shall propose necessary infrastructure
(including software and hardware), in its technical and financial bid, required to
operationalize the IT solution. The Infrastructure proposed by SI shall address the
functional, performance, security and availability requirements as stated in the RFP
and shall address the requirements as stated in the RFP. The SI shall be solely
responsible for any financial implications on items not quoted in the proposal and
which are required for operationalization of the IT Solution.
d. Cost quoted for the software (both system & application) shall include the cost of
design, development, configuration, customization and implementation according to
Project Requirements which would include the cost of the Development &
deployment team, Project Manager, and the Training Manager.

Deviations and Exclusions

a. The bidder shall provide deviations and exclusions, if any, from the defined scope of
proposed IT solution in the format provided in this RFP. Here it should be noted that
any deviation or exclusion unacceptable to the KHDC would lead to the
disqualification of the bidder from the tendering process, this will be applicable
irrespective of whether the bidder scores more than 70% marks in the technical
evaluation process.
Total Responsibility
a. Bidder shall undertake total responsibility for the defect free operation of the
proposed IT Solution, without any conditions. Such an undertaking would be made as
part of the proposal covering letter format for which has been provided in this RFP.

Signature

a. The covering letter must be signed with the bidders name and by a representative of
the bidder, who is authorized to commit the bidder to contractual obligations and has
the power of attorney on behalf of the bidder. All obligations committed by such
signatories must be fulfilled.

Bid Submission

a. Submission of bids shall be in accordance with the instructions given in the eProcurement System of Government of Karnataka.

b. The Tender Inviting Authority will not accept delivery of proposal by fax or e-mail.
Proposal received by facsimile shall be treated as defective, invalid and rejected.

Period of Validity of Proposals

a. The technical and commercial proposals and the rates provided in the commercial
proposal shall be valid for a period of Twenty four (6) months from the date of
opening of the proposals. A proposal valid for a shorter period may be rejected as
non-responsive. Any bidder withdrawing the proposal within the period of validity
will forfeit his EMD.
b. In exceptional circumstances, at its discretion, Tender Inviting Authority may solicit
the bidder's consent for an extension of the validity period. The request and the
responses thereto shall be made in writing (or by fax or email).

Prices
The bidder shall arrive at a final value (based on their quote) for the entire project on a single
responsibility basis. KHDC reserves the right to procure the components/ services listed in
this RFP in whole or in part. No adjustment of the contract price shall be made on account of
any variations in costs of labour and materials or any other cost component affecting the total
cost in fulfilling the obligations under the contract. The Contract price shall be the only
payment, payable by KHDC to the successful bidder for completion of the contractual
obligations by the successful bidder under the Contract, subject to the terms of payment
specified in the contract. The price would be inclusive of all taxes, duties, charges and levies
as applicable.

The prices, once offered, must remain fixed and must not be subject to escalation for any
reason whatsoever within the period of project. A proposal submitted with an adjustable price
quotation or conditional proposal may be rejected as non-responsive. The prices quoted in the
commercial bid shall be subject to negotiation with KHDC based on the requirements of
modules required and number of licenses.

Correction of errors
a. Bidders are advised to exercise adequate care in quoting the prices. No excuse for
corrections in the quoted price will be entertained after the proposals are opened. All
corrections, if any, should be performed before submission, failing which the figures
for such items may not be considered. Arithmetic errors in proposals will be corrected
as follows:
b. In case of discrepancy between the amounts mentioned in figures and in words, the
amount in words shall govern. The amount stated in the proposal form, adjusted in
accordance with the above procedure, shall be considered as binding, unless it causes
the overall proposal price to rise, in which case the overall proposal price shall
govern. If there is a discrepancy between the unit price and the total price that is
obtained by multiplying the unit price and quantity, the unit price shall prevail and the
total price shall be corrected.
Non-Conforming Proposals
a. A proposal may be construed as a non-conforming proposal and ineligible for
consideration if it does not comply with the requirements of this RFP. Failure to
comply with the technical requirements, and acknowledgment of receipt of
amendments, are common causes for holding proposals non-conforming.
b. If a proposal appears to be canned presentations of promotional materials that do
not follow the format requested in this RFP or do not appear to address the particular
requirements of the proposed IT solution, then it shall be disqualified from further
consideration.

Disqualification
The proposal is liable to be disqualified in the following cases or in case bidder fails
to meet the bidding requirements as indicated in this RFP:

Proposal is not submitted in accordance with the procedure and formats prescribed in
this document or treated as non-conforming proposal.

During validity of the proposal, or its extended period, if any of the bidder increases
his quoted prices.

The bidders proposal is conditional and has deviations from the terms and conditions
of RFP. Proposal is received in incomplete form.

Proposal is received after due date and time.

Proposal is not accompanied by all the requisite documents.

If Bidder provides quotation for one/two Phases only and not for the entire scope of
work.
Bidder tries to influence the proposal evaluation process by
unfair/unlawful/corrupt/fraudulent means at any point of time during the bid process
In case any one party submits multiple proposals or if common interests are found in
two or more bidders, the bidders are likely to be disqualified, unless additional
proposals/bidders are withdrawn upon notice immediately.

Bidders may specifically note that while evaluating the proposals, if it comes to the
Tender Scrutiny Committees knowledge expressly or implied, that some bidders may have
colluded in any manner whatsoever or otherwise joined to form an alliance resulting in
delaying the processing of proposal then the bidders so involved are liable to be disqualified
for this contract as well as for a further period of three years from participation in any of the
tenders floated by Procurement Entity. Any conviction of the bidder in court case/ legal

proceedings, tax evasion case.

Bidder has been blacklisted by Central/ State/ UT Government or any of their clients.

Modification and Withdrawal of Proposals

a. No proposal may be withdrawn in the interval between the deadline for submission of
proposals and the expiration of the validity period specified by the bidder on the
Conflict of Interest
Existence of, absence of, or potential for conflict of interest on the part of the bidder or any
prospective sub-contractor due to prior, current, or proposed contracts, engagements, or
affiliations with KHDC should be disclosed by the bidder. Additionally, such disclosure shall
address any and all potential elements (time frame for service delivery, resource, financial or
other) that would adversely impact the ability of the bidder to complete the requirements as
given in the RFP. This shall be submitted in the format provided in the Format for declaring
Conflict of Interest.

Acknowledgement of Understanding of Terms

a. By submitting a proposal, each bidder shall be deemed to acknowledge that it has
carefully read and understood all sections of this RFP, including all forms, schedules
and annexure hereto, and has fully informed itself as to all existing conditions and
limitations.
Conditions
The following terms are applicable to this RFP and the bidders proposal. This RFP does not
commit the Tender Inviting Authority to enter into a service agreement or similar undertaking
with the bidder or any other organization and the Tender Inviting Authority shall have the
right to reject or accept any proposal or offer, or any part thereof (e.g., any component of any
proposed solution) for any reason whatsoever. The Tender Inviting Authority reserves the
right to enter into relationships with more than one bidder; can choose not to proceed with
any bidder with respect to one or more categories of services/requirements outlined in this
RFP; and can choose to suspend the project or to issue a new RFP for this project that would
supersede and replace this one. Proposals should be accompanied with a covering letter in
format specified under Proposal Covering Letter undersigned by authorized representative
having power of attorney on behalf of the bidder. The Tender Inviting Authority is not
restricted in its rights to use or disclose any or all of the information contained in the
proposal, and can do so without compensation to the bidder. The Tender Inviting Authority
shall not be bound by any language in the proposal indicating the confidentiality of the

proposal or any other restriction on its use or disclosure. Any work product, whether
acceptable or unacceptable, developed under a contract awarded as a result of this RFP shall
be the sole property of the KHDC unless stated otherwise in the definitive service agreement.
Timing and sequence of events, resulting from this RFP shall ultimately be determined by the
KHDC. No oral conversations or agreements with any official, agent, or employee of the
KHDC shall affect or modify any terms of this RFP, and any alleged oral agreement or
arrangement made by a bidder with any department, agency, official or employee of the
KHDC shall be superseded by the Master Service Agreement that results from this RFP
process. Oral communications by the KHDC to bidders shall not be considered binding on
the KHDC, nor shall any written materials provided by any person other than the KHDC.
Proposals are subject to rejection if they limit or modify any of the terms and conditions or
specifications of this RFP. By responding, the bidder shall be deemed to have represented and
warranted: that its proposal is not made in connection with any competing bidder submitting
a separate response to this RFP, and is in all respects fair and without collusion or fraud; that
the bidder did not participate in the RFP development process and had no knowledge of the
specific contents of the RFP prior to its issuance; and that no employee or official of the
KHDC participated directly or indirectly in the bidders proposal preparation. Neither the
bidder nor any of bidders representatives shall have any claims whatsoever against the
KHDC or any of its respective officials, agents, or employees arising out of or relating to this
RFP or these procedures (other than those arising under a definitive service agreement with
the bidder in accordance with the terms thereof). Until the contract is awarded and during the
currency of the contract, bidders shall not, directly or indirectly, solicit any employee of the
KHDC to leave the KHDC or any other officials involved in this RFP process in order to
accept employment with the bidder, its affiliates, actual or prospective consortium members,
or any person acting in concert with the bidder, without prior written approval of the KHDC.

Bid Opening & Proposal Evaluation Process

Total transparency will be observed while opening of proposals. Tender Inviting Authority
reserves the right at all times to postpone or cancel a scheduled Tender opening. In the event
of the specified date of bid opening being declared a holiday, the bids shall be opened at the
appointed time and location on the next working day. The proposal evaluation would be
divided into the following two categories,
a.

Technical Evaluation

b.

Commercial Evaluation

The technical evaluation would be done on the basis of the technical evaluation criteria. The
technical evaluation criterion specifies mandatory requirements which need to be adhered for

manpower and past relevant experience. In case the bidder is not able to propose relevant
resources with mandatory qualifications and projects meeting relevant experience then the
bidder would be disqualified from further evaluation process.
Proposals which qualify the technical evaluation round would be considered for the
commercial evaluation. The commercial evaluation is proposed model wherein the sum total
of the CAPEX and the OPEX would be considered for selecting the lowest price bidder, who
would subsequently be awarded the rights to execute the project.
General Guidelines for tender opening
1.
Bids will be in two parts (technical and financial) as indicated in the RFP. There will
be two bid-opening events (i) for the Technical Bids and (ii) for the Commercial Bids.
2.
The technical proposals of all the bidders will be opened. After evaluation of technical
proposals, the commercial proposals of only those bidders, who qualify in technical
evaluation, will be opened.
3.
The date and timing for opening the Technical & Commercial proposals will be
informed to the bidders at the appropriate time, with adequate notice on the e-procurement
portal.

Bid opening sessions

1.
In the event of the specified date of bid opening being declared a holiday for Tender
Inviting Authority, the Bids shall be opened at the same time and location on the next
working day. During bid opening preliminary scrutiny of the bid documents will be made to
determine whether required bid security has been furnished, whether the proposal covering
letter, citations, resumes and statement of deviations have been properly signed, and whether
the bids are generally in order. Bids not conforming to such preliminary requirements will be
prima facie rejected.
2.
Bids will be opened in the presence of bidders representatives, who choose to attend.
The bidder representatives who are present shall sign a register evidencing their attendance.
3.
The bidders names, bid modifications or withdrawals, discounts, and the presence or
absence of requisite bid security and such other details as the KHDC officer at his/her
discretion, may consider appropriate, will be announced at the opening. No bid shall be
rejected at bid opening, except for late bids, which shall be returned unopened.
4.
Bids that are not opened and read out at bid opening shall not be considered further
for evaluation, irrespective of the circumstances.
5.

Withdrawn bids will be returned unopened to the bidders.

Verification of Bid Security

1.
The bid security submitted through the e-Procurement process shall be verified by the
Tender Inviting Authority. Bids not accompanied with the requisite Bid Security or whose
Bid Security is not in order shall be rejected.

Evaluation of Demo
1.
The objective of this assignment is to assess the competence of the bidder in
designing and implementing the solution for the entire IT System, especially pertaining to
network and related hardware and software.
2.
The Tender Scrutiny Committee intends to have demonstration of the IT system, as
part of the technical solution, for evaluating the technical proposals of the bidders. The demo
would be of awarded 16 marks and bidders would be graded within this, based upon their
performance at this stage.
3.
This activity is envisaged keeping in mind the stringent timelines that the bidder must
work against. All the necessary hardware, devices, software etc. required for the
demonstration should be brought by the bidder only. KHDC will in no way undertake to
provide any hardware, software or devices to any bidder. The database will be additionally
given to the bidder by the KHDC; the bidder has to append this to the existing collected
database.

4.

Methodology

During the demo, each bidder will be given the digitized data of the transactions available
with KHDC. The bidder shall use the same hardware which will be installed and operated in
the project.

The bidder will have to demonstrate functionality and performance of the IT system.
The method of creating a central database by consolidation of the data should be
demonstrated.
A workflow solution and reporting should be showcased in detail.
MIS reports that will be useful for the officials of KHDC should be generated. The bidder
shall use his domain knowledge to design and generate MIS reports that will be useful for
KHDC.

Evaluation of Technical proposals

The Technical Proposals of only those bidders, whose Bid Security is in order, shall be
opened for technical evaluation. The bids will then be passed on to a Tender Scrutiny
Committee (the Committee) appointed by the Steering Committee for the IT system which
is the Tender Accepting Authority for the project, for evaluation. The evaluation of the
Technical bids will be carried out in the following manner: The bidders' technical solutions
proposed in the bid document are evaluated as per the requirements specified in the RFP and
adopting the evaluation criteria.
The Bidders are required to submit all required documentation in support of the evaluation
criteria specified (e.g. detailed project citations and completion certificates, client contact
information for verification, profiles of project resources and all others as required for
technical evaluation.

Mandatory Adherence
a.
The technical evaluation criteria has six categories, the first two categories is the
requirements of past performance and relevant experience of the bidder. A bidder is expected
to suggest at least three and two projects, respectively, meeting each of the relevant
requirements for being selected for further evaluation. Here it should be noted that bidder can
suggest the same project for various requirements, provided they meet those requirements.
The fourth category of the technical evaluation criterion contains the manpower and
personnel section. This category seeks resumes of resources that would be placed for project
work. The qualifications of the resources proposed have been further divided into two
sections, namely, the mandatory qualification requirements and additional qualification
requirements. While a resource proposed for a particular role should meet each of the
mandatory qualification requirements of that role any additional qualifications would be used
to grade the resource. Any resource found not adhering to the mandatory
qualification criterion would not be accepted and the corresponding proposal would be
disqualified from the evaluation process.

Evaluation of Technical Bids

a.
The technical evaluation of the bid will be based on the bidders response to the
requirements as mentioned in the RFP, which will include the Technical Specifications
mentioned in RFP.
b.
The parameters for technical evaluation would include the following criteria. Each
bidder has to present the technical bid to the evaluation committee for examination. The score
will be computed for total of 100. The bidder with less than 70 score in technical evaluation

will be treated as non-responsive.

Proposal Presentations
a.
The committee shall invite each bidder to make a presentation, to the KHDC and the
Technical Scrutiny Committee at a date, time and venue determined by the KHDC. The
purpose of such presentation would be to allow the bidders to present their proposed solutions
to the committee and highlight the key points in their proposals. The presentation would be a
critical element in the technical proposal evaluation process. The presentation duration would
be limited to 2 hours, which would include the demonstration of the IT system, with
additional 30 minutes for question & answer. The presentation should be architected as per
the flow of the technical evaluation criteria.
b.
The Tender Scrutiny Committee may seek written clarifications and supporting
documents from the bidders. The primary function of clarifications in the evaluation process
is to clarify ambiguities and uncertainties arising while evaluating the bid documents. Oral
clarifications provide the opportunity for the committee to state its requirements clearly and
for the bidder to more clearly state its proposal. The committee at its sole discretion may seek
inputs from their professional, technical faculties in the evaluation process.
c.
Depending on the evaluation criteria mentioned in this document, each Technical Bid
will be assigned a technical score out of a maximum of 100 points, including the marks
allocated for Demo.
d.
Only the bidders, who score more than 70% marks in individual categories, and
thereby reach a Technical score (TS) of 70 (Seventy) or more, will qualify for the financial
bid evaluation. The bidders must get more than 70% marks in individual categories, as well,
in order to be considered for qualifying the technical evaluation stage.

Point based system for technical evaluation

S.No.
1.

Criteria
Experience of the Bidder in IT implementation in India/Abroad

Points/ Marks
15

Two or below Two projects 0 Points Three projects 4 points for each
completed project Additional projects 1.5 points for each completed
project (Max. of two projects) The total points are subject to a maximum
of 15.Documentary proof in the form of work order and satisfactory
completion certificate should be enclosed for these projects in the
technical proposal.
2.

The total points are subject to a maximum of 10.

10

Documentary proof in the form of work order and satisfactory

completion certificate should be enclosed for these projects in the
technical proposal.
3

Understanding the Project

5Points

20

requirements
Blueprint (mapping) of

5Points

The proposed system in relation to

the functions and also nonfunctional requirements.
Technical solution proposed,

5Points

architecture, Feasibility
to implement
and Support

5Points

Position Project Manager

Role The engagement / project manager would be the main
interlocutor between the KHDC and the SI. He would be the person to
whom the entire team of the IS involved in designing, development,
rollout and maintenance of the project would be reporting.
Mandatory Qualifications The engagement / project manager
suggested should exhibit the following attributes (Marks: 4)
a. The person suggested should have a minimum technical
qualification of Masters degree/diploma (in Computer Applications or

20

Computer Science or IT)/ MBA ;

b. He /She should have had an minimum experience of 15 years

Position Software Development leader

Role The Software Development team leader would be responsible for

managing the activities leading to the development of software. This
would include software development, testing, deployment and rollout.
He / She would be reporting to the project manager.

Mandatory Qualifications The Software Development team leader

suggested should exhibit the following attributes (Marks: 4)

a.The person/s suggested should have a minimum educational

qualification, of BE / BTECH in Computer Science or MCA;

b.He / She should have had an minimum experience of 12 years in IT

implementation, configuration and customization.
Position Software testing lead
Role The Software Testing team leader would be responsible for
managing the activities leading to the testing of software. This would
include software testing, testing, deployment and rollout. He / She would
be reporting to the project manager.

Mandatory Qualifications The Software Development team leader

suggested should exhibit the following attributes (Marks: 4)

a. The person/s suggested should have a minimum educational

qualification, of BE / BTECH in Computer Science or MCA;
b. He / She should have had an minimum experience of 8 years in IT
implementation, configuration and customization
Position Developers

Role They would be responsible for developing the source code or

performing the customization of the application software proposed.

Mandatory Qualifications The developers suggested should exhibit the
following attributes (Marks: 4)

a. Person/s suggested should have a minimum educational

qualification, of BE / BTECH or MCA;
b. Resource should have had an minimum experience of 5 year in IT
implementation, configuration and customization. One year post
go-live and whenever a change is requested.
Position Testers
Role They would be responsible for testing the functional req or
performing the customization of the testcases as to test the software
proposed.
Mandatory Qualifications The testers suggested should exhibit the
following attributes (Marks: 4)

a. Person/s suggested should have a minimum educational

qualification, of BE / BTECH or MCA;
b. Resource should have had an minimum experience of 2-3 year in
IT implementation, configuration and customization. One year
post go-live and whenever a change is requested.

Overall approach and methodology of project execution and post

implementation support including training and data migration plan,
Project work plan, milestones and deliverables
Approach and Methodology: 5 Points

20

Data migration model : 6 Points

Post Implementation Support: 4 Points
Project Work Plan, Milestones and Deliverables: 5 Points
6.

Proposal presentation

15

Total

100

Evaluation of Commercial proposals

1.
The financial bids of only the bidders who have been found substantially responsive
meeting the technical requirements and also secured required score in the technical evaluation
should be considered for the financial bid evaluation. The financial proposal evaluation will
be based on L1, the lowest cost is the winning bidder.

2.
To facilitate evaluation of bids, KHDC, at its sole discretion, may seek clarification in
writing from any bidder regarding the bid.
3.
Final choice of firm for the project shall be made on the basis of conformity to prequalification, appropriateness of the financial offer from point of view of cost effectiveness
over the entire period for the services and capability of the firm to execute and service the
project.
4.

Net Current or Net Present Value (NPV)

Interest Rate (I) for Net Present Value calculations of recurrent costs is 8.5 % for each year,
wherever applicable.
Negotiations, Contract Finalization and Award

1.
The KHDC reserves the right to negotiate with the bidder (s) whose financial proposal
has been ranked lowest (L1) by the committee if it so desires. A contract will be awarded to
the responsible, responsive bidder whose proposal conforms to the RFP and is, in the opinion
of KHDC, the most advantageous and represents the best value to the proposed IT Project,
price and other factors considered. Evaluations will be based on the proposals, and any
additional information requested by the Tender Scrutiny Committee while evaluating.
Tender Accepting Authoritys Right to Accept Any Proposal or Reject any or All Proposals
1.
Tender Accepting Authority reserves the right to accept or reject any bid, and to annul
the bidding process and reject all bids at any time prior to award of contract, without thereby
incurring any liability to the affected.
2.
Tender Accepting Authority may at their sole discretion and at any time during the
evaluation of Proposal, disqualify any bidder, if the bidder has:
Submitted the Proposal documents after the response deadline;
Made misleading or false representations in the forms, statements and attachments submitted
in proof of the eligibility requirements;

Exhibited a record of poor performance such as abandoning works, not properly completing
the contractual obligations, inordinately delaying completion or financial failures, etc. in any
project in the preceding three years;

Submitted a proposal that is not accompanied by required documentation or is nonresponsive;

Failed to provide clarifications related thereto, when sought; Submitted more than one
Proposal;

Declared ineligible by the Government of India/ State/ UT Government for corrupt and
fraudulent practices or blacklisted.

Submitted a proposal with price adjustment/variation provision.

Award of Contract
1.

Award Criteria

a. KHDC will award the Contract to the successful bidder whose proposal has been determined as
the best value proposal based on Technical and Financial evaluation criteria and accepted by the
Tender Accepting Authority.
2.

Purchasers right to Vary Quantities at Time of Award

a. The Purchaser reserves the right at the time of Contract award to increase or decrease, by the
percentage(s) indicated in the Scope of Work, any of the following:
the quantity of substantially identical Subsystems; or

the quantity of individual software products, and other goods components of the Information
System; or

The quantity of Installation or other Services to be performed, from that originally specified
in the Technical Requirements without any change in unit prices or other terms and
conditions.

b. Final choice of Bidder, to execute this project shall be made on the basis of to the
following: Suitability of the solution proposed by bidder
Time schedule of execution

Appropriateness of financial offer from the point of view of costeffectiveness, Total cost over contact period
Sustainability of solution

3.

Signing of Contract

a. At the same time as KHDC notifies the successful bidder that its proposal has been accepted,
KHDC shall enter into a separate contract, incorporating all agreements between KHDC and the
successful bidder. The Master Service Agreement is provided in the appendix of the RFP. Such
agreements shall cover, in detail; aspects/terms of the contract such as:
i.

Performance security

ii.

Contract form

iii.

Warranty

iv.

Payment

v.

Prices

vi.

Assignment

vii.

Sub-contracts

viii.

Liquidated damages

ix.

Termination

x.

Applicable law

xi.

Notices

xii.

Taxes and duties

xiii.

Confidentiality

xiv.

Limitation of liability

xv.

Technical Documentation

xvi.

Project Management

xvii.

Bidders obligations

General Conditions of Contract

a. Following are key contract terms and conditions required by Managing Director, Karnataka State
Handloom Development Corporation to enter into a relationship with the Bidder. This term sheet
is not intended to be exclusive. This Contract is intended to sensitize the Bidder to various
clauses, which may be reflected in the final contract.
Definitions
Agreement means the Agreement to be signed between the successful bidder and KHDC,
Government of Karnataka, including all attachments, appendices, all documents incorporated by
reference thereto together with any subsequent modifications, the RFP, the bid offer, the
acceptance and all related correspondences, clarifications, presentations.

Authorized Representative shall mean any person authorized by either of the parties.
Awareness and Sensitization It shall mean creating Awareness among the people and other
stakeholders about the Project and sensitizing them in this regard for successful implementation
of the project. The awareness and sensitization is expected to bring about positive changes in
peoples approach and response with respect to the Project, such that they are receptive to ICT
infrastructure and processes and responsive in executing the project in true spirits. It shall include
printing literature, communication of messages through various media, etc.

Contract is used synonymously with Agreement.

Default Notice shall mean the written notice of Default of the Agreement issued by one Party
to the other in terms hereof.

Effective Date means the date on which the contract signed for execution

GO live Means the date on which all modules as per the contract are made operational and
accepted by KHDC.

Law shall mean any Act, notification, bye law, rules and regulations, directive, ordinance,
order or instruction having the force of law enacted or issued by the Central Government and/ or
the Government of Karnataka or KHDC or any other regulatory authority or Department of the
government.

LoI means Letter of Intent, which shall constitute the intention of the KHDC to place the
Purchase Order with the successful bidder.

Party means KHDC or Bidder, individually and Parties mean KHDC and Bidder, together.

Project Coordinator Means the Project Manager or any other officer appointed by KHDC on
its behalf for overall co-ordination, supervision and project management

Proposal / Bid means the Technical and Commercial Proposals all together, i.e., complete
proposal for the implementation of IT system at Karnataka Handloom development Corporation.

Request for Proposal (RFP) means this document and its annexure etc., seeking a set of
solution(s), services(s), materials and/or any combination of them.

Requirements shall mean and include schedules, details, description, statement of technical
data, performance characteristics and standards (Indian & International) as applicable and
specified in the RFP.

System Integrator (SI)/ Bidder means any firm or group of firms (called consortium) offering
the solution(s), service(s) and /or materials as required in the RFP. The word Bidder/ system
integrator when used in the pre-award period shall be synonymous with parties bidding for this
RFP, and when used after award of the Contract shall mean the successful party with whom
KHDC, signs the agreement for rendering of services for implementation of this project.

Termination Notice means the written notice of termination of the Agreement issued by one
Party to the other in terms hereof.

Deviations
a. The tender should be for the complete scope of work and services. However, in case of any minor
deviations, the Bidder should clearly and separately state the item that is in deviations in their
tender. This should be clearly stated under deviations head quoting the index and serial references
in Technical Specifications. Any deviation mentioned elsewhere in the tender but not clearly
stated under this section should not be considered. The Bidder should also clearly indicate the

services and utilities to be provided by the, KHDC including their obligations, if any, KHDC
reserves the right to consider or reject these deviations of the tender.

Use of Contract documents and information

The Bidder shall not, without prior written consent from KHDC disclose the Contract, or any
provision thereof, or any specification, plan, drawing, pattern, sample or information to any
person other than a person employed by the Bidder in the performance of the Contract.
Disclosure to any such employed person shall be made in confidence and shall extend only so far,
as may be necessary for purposes of such performance. The Bidder shall not, without prior
written consent of KHDC, make use of any document or information made available for the
project, except for purposes of performing the Contract. All project related document issued by
The KHDC, other than the Contract itself, shall remain the property of KHDC and shall be
returned (in all copies) to KHDC on completion of the Bidders performance under the Contract
if so required by KHDC

12.4

Limitation of Liability

a. There shall be no limitation to the liability of the System Integrator in case of any damages for
bodily injury (including death) and damage to real property and tangible personal property.
b. This Agreement does not grant or create any rights, benefits, claims, obligations or causes of
action in, to or on behalf of any person or entity (including any third party) other than between the
respective Parties to this Agreement , as the case may be.
c. Any claim or series of claims arising out or in connection with this Agreement shall be time
barred and invalid if legal proceedings are not commenced by the relevant Party against the other
Party within a period of Eighteen (18) months from the date when the cause of action first arose
or within such longer period as may be permitted by applicable law without the possibility of
contractual waiver or limitation.
d. The Managing Director, KHDC Project shall be entitled to claim the remedy of specific
performance under this Agreement or the SLAs.
e. Except for damages mentioned in Point No. (a) above, the System Integrator's aggregate liability
under this Agreement in respect of any or all claims arising under this Agreement shall not exceed
the aggregate amount received by the System Integrator.

Liquidated Damages
If the successful Bidder fails to deliver any or all of the Goods or perform the Services within the
time period(s) to be specified in the Contract, KHDC shall, without prejudice to its other
remedies under the Contract, deduct from the Contract Price, as liquidated damages, a sum
equivalent to two percent (2%) of the delivered price of the delayed Goods or unperformed
Services for each week or part thereof of delay until actual delivery or performance, up to a
maximum deduction of ten percent (10%). Once the maximum is reached, KHDC may consider
termination of the Contract. In the event Bidder fails to provide the Services in accordance with
the Service Standard, the Bidder shall be liable for penalty as per the terms and conditions of
SLA's The KHDC is entitled to withhold (deduct) from the purchase price or the Performance
Security the liquidated damages that have become due.
Confidentiality and Termination Rule
The Bidder shall not use or disclose to any third party, except for the purpose of the observance
of these terms and Conditions any confidential information of KHDC.

1.

Termination by Default

a. The KHDC without prejudice to any other remedy for breach of Contract, by written notice of
default sent to the Bidder, may terminate the Contract fully or in part: If the selected Bidder fails
to implement the system within the time period(s) specified in the Contract, or within any
extension thereof granted by KHDC pursuant to clause, or
i. If the selected Bidder fails to deliver any or all Contracted services as per service standards
specified in the Contract or
ii. If the selected Bidder fails to perform any other obligation(s) under the Contract, or
iii. If the Bidder / selected Bidder in the judgment of KHDC has engaged in corrupt or fraudulent
practices in competing for or in executing the Contract.

b. In the event KHDC terminates the Contract in whole or in part, KHDC may procure upon such
terms and in such manner, as it deems appropriate, services similar to those undelivered, and the
selected Bidder shall be liable to KHDC for any excess costs for such similar services. However,

the Bidder shall continue performance of the contract to the extent not terminated. Alternately,
KHDC would be free to fully take over the assets and operations earlier being undertaken by the
Bidder on mutually agreed terms, without prejudice to any other action as contemplated in the
Contract.

2.

Termination by Insolvency

a. The KHDC may at any time terminate the Contract by giving written notice to the selected Bidder
if the successful Bidder becomes bankrupt or otherwise insolvent. In this event, termination will
be without compensation the selected Bidder, provided that such termination will not prejudice or
affect any right of action or remedy which has accrued or will accrue thereafter to KHDC.

3.

Termination by Bidder Right

a. Notwithstanding the foregoing, the Successful Bidder may terminate this agreement any time,
upon ninety days written notice to KHDC and if KHDC is in material breach of any of its
obligations under this agreement, which breach, if capable of remedy, has not been remedied
within ninety (90) days of written notice identifying the breach and requiring it to be remedied.
Force Majeure
a. Force Majeure Event: As used in the contract, a Force Majeure Event shall mean any
unforeseeable act or event that prevents the affected Party from performing its obligations under
this contract or complying with any conditions required by the other Party under this contract if
such act or event is beyond the reasonable control of and not the fault of the affected Party and
such Party has been unable to avoid such act or event by the exercise of prudent foresight and due
diligence, including (except as hereinafter limited); War and other hostilities (whether war be
declared or not), invasion, act of foreign enemies, mobilization, requisition or embargo;
Rebellion, revolution, insurrection, military or usurped power and civil war; Riot, civil
commotion, terrorism or disorder, except, in the case of Successful Bidder, where involving
employees of Successful Bidder, any Subcontractor, or any subcontractor of any subcontractor;
Pestilence, epidemics, inclement weather constituting flood, lightning, cyclone, typhoon and

earthquake, but, in the case of Successful Bidder, (excluding monsoons), fire explosion,
shipwrecks, transportation accidents or other accidents or acts of God, but specifically excluding,
in the case of Successful Bidder, all ground conditions (other than ground conditions which could
not have been foreseen or identified on reasonable investigation); Discovery of historically
significant artifacts on the Facility Site; Any failure by a Governmental Instrumentality (including
Central Govt.) to grant any Applicable Permit, within a reasonable time after application therefore
having been duly made and the conditions for the issuance thereof having been duly satisfied The
following events are explicitly excluded from a Force Majeure Event and are solely the
responsibility of the affected Party (it being understood that Successful Bidder shall have
responsibility for all Subcontractors for purposes hereof): Strikes, collective bargaining
agreements of either Party resulting in a delay or stoppage of the Work and labour disputes of any
kind (in all cases other than strikes, labour delay or stoppage or other labour disputes on an
industry-wide or nation-wide basis); Late delivery of Equipment caused by suppliers or by
inefficiencies on the part of Successful Bidder or his Subcontractors; and Economic hardship &
political uncertainty Burden of Proof: In the event that the parties are unable in good faith to agree
that a Force Majeure Event has occurred, the Parties shall submit the dispute for resolution
pursuant provided that the burden of proof as to whether a Force Majeure Event has occurred
shall be upon the Party claiming a Force Majeure Event.

b. Excused Performance: If either Party is rendered wholly or partially unable to perform its
obligations under the Contract because of a Force Majeure Event, that Party will be excused from
whatever performance is affected by the Force Majeure Event to the extent so affected. The
affected Party gives the other Party written notice of the occurrence of the Force Majeure Event as
soon as practicable after the occurrence thereof, and also gives the other Party written notice
describing in reasonable detail the particulars of such occurrence, including an estimation of its
expected duration and probable impact on the performance of such Partys obligations hereunder,
and thereafter continues to furnish timely regular reports with respect thereto during the
continuation of the Force Majeure Event; The suspension of performance shall be of no greater
scope and of no longer duration than is reasonable required by the Force Majeure Event. No
liability of either Party which arose before the occurrence of the Force Majeure Event causing the
suspension of performance shall be excused as a result of the occurrence, including liability for
the timely payment of money otherwise due and earned by performance of tasks required under
the contract by any Party; The affected Party shall exercise all reasonable efforts to mitigate or
limit damages to the other Party; The affected Party shall use its best efforts to continue to
perform its obligations hereunder and to correct or cure the event or condition excusing
performance; and When the affected Party is able to resume performance of its obligations under
the Contract, that Party shall give the other Party written notice to that effect and shall promptly

resume performance hereunder.

c. Limitation: Anything in the Contract to the contrary notwithstanding: Any act, event, or
occurrence listed above or asserted as Force Majeure Event that results materially from the
negligence or intentional acts of the affected Party (or, in the case of Successful Bidder or any
Subcontractor, or any Subcontractor of any thereof) shall not constitute a Force Majeure Event;
and The affected Party shall not be relieved from obligations under the Contract to the extent that
the negligence or willful misconduct of the affected Party (or in the case of Successful Bidder or
any subcontractor or any Subcontractor of any thereof) contributes to or aggravates the Force
Majeure Event.

d. Consequences of Force Majeure: Neither Party shall be considered in default or in breach of its
obligations under the Contract to the extent that performance of such obligations is prevented by
an exempting Force Majeure Event. Unless otherwise directed by KHDC in writing, the Bidder
shall continue to perform its obligations under the Contract as far as is reasonably practical, and
shall seek all reasonable alternative means for performance not prevented by the Force Majeure
event.

e. Termination on account of Force Majeure: If an event of Force Majeure continues for a period
of one hundred and eighty (180) days or more at a time, the parties may, by mutual agreement,
terminate the Contract without either party incurring any further liabilities towards the other with
respect to the Contract, other than to effect payment for Products already delivered or Services
already performed including services rendered during the continuance of the Force Majeure event
and services and products completed partially, either during or prior to the Force Majeure event.
Contract Amendment
No variation in or modification of the terms of the Contract shall be made except by written
amendment signed by the parties.

Applicable Law
The Contract shall be interpreted in accordance with appropriate Indian laws.

Assigning of Tender Whole or in Part

The Successful Bidder should not assign or make over the contract, the benefit or burden thereof
to any other person or persons or body corporate except declared consortium partners. They
should not underlet or sublet to any person/s or body corporate except declared consortium
partners for the execution of the contract or any part thereof.

Subcontracting
Except where otherwise provided by the Contract, the Contractor shall not sub-contract any part
or whole of the Works without the prior consent of the KHDC.

Resolution of Disputes

The KHDC and the selected Bidder shall make every effort to resolve amicably by direct
informal negotiation any disagreement or dispute arising between them under or in connection
with the Contract. If, after thirty (30) days from the commencement of such informal
negotiations, the KHDC and the selected Bidder have been unable to amicably resolve dispute,
either party may require that the dispute be referred for resolution to the formal mechanisms,
which may include, but are not restricted to, conciliation mediated by a third party acceptable to
both, or in accordance with the Arbitration and Conciliation Act, 1996. All Arbitration
proceedings shall be held at Bangalore, India, and the language of the arbitration proceedings and
that of all documents and communications between the parties shall be in English.

Change Control Schedule

1.

Purpose

a. This Schedule describes the procedure to be followed in the event of any proposed change to the
Master Service Agreement (MSA), Project Implementation Schedule and Operation and
Management SLA. Such change shall include, but shall not be limited to, changes in the scope of
services provided by the system integrator and changes to the terms of payment as stated in the
Terms of Payment Schedule. It is recognised that change is an inevitable part of service delivery

and that a significant element of this change can be accomplished by re-organising processes and
responsibilities without a material effect on the cost. The system integrator will endeavour,
wherever reasonably practicable, to effect change without an increase in the terms of payment as
stated in the Terms of Payment Schedule and the KHDC will work with the system integrator to
ensure that all changes are discussed and managed in a constructive manner.

b. This Change Control Schedule sets out the provisions which will apply to changes to (a) the
MSA; (b) the Project Implementation Schedule; and (c) Operation and Management SLA.

c. For performing of any functional changes to system, which are deviating from the signed-off
Functional Requirements/System Requirements, a separate Change Control Note (CCN) shall be
prepared by the system integrator and effort & cost estimates shall be mutually agreed between
system integrator and the KHDC. This is applicable to the change requests coming up after the
Go-live stage. Before, the go-live stage, such changes and feedbacks from the KHDC pertaining
to functional specifications will be incorporated by the system integrator without any additional
costs to the KHDC.
2.

Change Control Note (CCN)

a. Change requests in respect of the MSA, the Project Implementation Schedule, or the Operation
and Management SLA will emanate from either the system integrator or KHDC. The initiator of
CCNs will be responsible for obtaining approval for the change and will act as its sponsor
throughout the Change Control Process and will complete the Initiation Process of the CCN.
CCNs will be presented by the initiator to the other, who will acknowledge receipt by signature of
the CCN.

b. The system integrator and the KHDC, while preparing the CCN, shall consider the change only
when such change is beyond the scope of services including ancillary and concomitant services
required as detailed in of the RFP.

c. For any changes in the system, identified by either party, the system integrator shall prepare a
detailed Change Control Note within ten working days from the date of intimation of such
change.
3.

Quotation

a. The system integrator shall assess the CCN and complete the evaluation of the CCN. In
completing the evaluation of the CCN, the system integrator shall provide as a minimum:
A description of the change;

A list of deliverables required for implementing the

change; A timetable for implementation;

An estimate of any proposed

change; Any relevant acceptance
criteria;

An assessment of the value of the proposed change;

Material evidence to prove that the proposed change is not already covered within the scope
of the project, SLAs, or MSA.

b. Prior to submission of the completed CCN to the KHDC, or its nominated agencies, the system
integrator will undertake its own internal review of the proposal and obtain all necessary internal
approvals. As a part of this internal review process, the system integrator shall consider the
materiality of the proposed change in the context of the MSA, the Project Implementation,
Operation and Management SLA affected by the change and the total effect that may arise from
implementation of the change.

c. Materiality criteria will be established by the KHDC and the system integrator. Changes requiring
no escalation of authority can be implemented. Discussion and agreement as to materiality will be
held in accordance with the Governance Schedule.

4.

Costs

a. The system integrator shall be responsible for its own costs incurred in the quotation; preparation
of CCNs and in the completion of its obligations described in this process provided the SI meets
the obligations as set in the CCN.
5.

Reporting/Review

a. The Status on the progress of the Change requests and CCNs will be reported by system
integrator on a fortnightly basis and same shall be reviewed by both the parties on Fort-nightly
basis.

6.

Obligations

a. The system integrator shall be obliged to implement any proposed changes once approval from
the KHDC in accordance with the CCN has been given, with effect from the date agreed for
implementation.

Exit Management
a.

Purpose

a. This clause sets out the provisions which will apply on expiry or termination of the Contract
Agreement, the Project Implementation, Operation and Management SLA (Service Level
Agreement) and SOW (Scope of Work).

b. In the case of termination of the Project Implementation and/or Operation and Management SLA

or SOWs due to illegality, the Parties (KHDC, System integrator) shall agree at that time
whether, and if so during what period, the provisions of this clause shall apply.

c. The Parties shall ensure that their respective associated entities, in case of the client, KHDC or its
nominated agencies and sub-contractors in case of the system integrator, carry out their respective
obligations set out in this Exit Management Clause.
Transfer of Assets
a. The system integrator shall be entitled to use the Assets for the duration of the exit management
period which shall be the three month period from the date of expiry or termination of the MSA.

b. KHDC during the Project Implementation Phase and Operation and Management Phase shall be
entitled to serve notice in writing on the system integrator at any time during the exit management
period as detailed hereinabove requiring the system integrator to provide the KHDC or its
nominated agencies with a complete and up to date list of the Assets within 30 days of such
notice. KHDC shall then be entitled to serve notice in writing to the system integrator at any time
prior to the date that is 30 days prior to the end of the exit management period requiring the
system integrator to sell any of the Assets to be transferred to KHDC or its nominated agencies at
market value (as determined as of the date of such notice).

c. Upon service of a notice as mentioned in point above, the following provisions shall apply:

In the event, if the Assets to be transferred are mortgaged to any financial institutions
by the system integrator, the system integrator shall ensure that all such liens and
liabilities have been cleared beyond doubt, prior to such transfer. All documents
regarding the discharge of such lien and liabilities shall be furnished to KHDC or its
nominated agencies.

All risk in and title to the Assets to be transferred to be purchased by KHDC or its
nominated agencies pursuant to Clause (ii) above, shall be transferred to KHDC or its
nominated agencies, on the last day of the exit management period.

The Client or its nominated agencies shall pay to the system integrator on the last day

of the exit management period such sum representing the depreciated value of the
assets as defined under the clause on termination by bidder right.

That on the expiry of this clause, the system integrator and any individual assigned
for the performance of the services under this clause shall handover or cause to be
handed over all Confidential Information and all other related materials in its
possession under this clause to the KHDC.

That the products and technology delivered to the Client during the contract term or
on expiry of the contract duration should not be sold or re-used or copied or
transferred by system integrator to other locations apart from the locations mentioned
in the RFP without prior written notice and approval of the KHDC. All software &
documents etc. used by system integrator for the KHDC shall be the legal properties
of the KHDC.

d. In case the vendor decides to exit due to non-performance, the application Software will be
forfeited and become a property of the KHDC.
Cooperation and Provision of Information
1. During the exit management period:
a) The system integrator will allow KHDC or its nominated agencies access to information
reasonably required to define the then current mode of operation associated with the provision
of the services to enable it to assess the existing services being delivered;
b) Promptly on reasonable request by the KHDC or its nominated agencies, the system
integrator shall provide access to and copies of all information held or controlled by it which
it have prepared or maintained in accordance with the MSA, the Project Implementation, the
Operation and Management SLA and SOWs relating to any material aspect of the services
(whether provided by the system integrator). KHDC or its nominated agencies shall be
entitled to copy all such information. Such information shall include details pertaining to the
services rendered and other performance data. The system integrator shall permit the KHDC
or its nominated agencies and/or any Replacement system integrator to have reasonable
access to its employees and facilities as reasonably required to understand the methods of
delivery of the services employed by the system integrator and to assist appropriate
knowledge transfer.

Confidential Information, Security and Data

a. The system integrator will promptly on the commencement of the exit management period supply
to the KHDC or its nominated agencies the following:
(i)

Information relating to the current services rendered and customer satisfaction

surveys and performance data relating to the performance in relation to the services;
and

(ii)

Documentation relating to Intellectual Property Rights; and

(iii)

KHDC data and confidential information; and

(iv)

All current and updated data as is reasonably required for purposes of the Client or its
nominated agencies transitioning the services to its Replacement system integrator in
a readily available format; and

(v)

All other information (including but not limited to documents, records and
agreements) relating to the services reasonably necessary to enable KHDC or its
nominated agencies, or its Replacement system integrator to carry out due diligence
in order to transition the provision of the Services to the Client or its nominated
agencies, or its Replacement system integrator (as the case may be).

b. Before the expiry of the exit management period, the system integrator shall deliver to the KHDC
or its nominated agencies all new or up-dated materials from the categories set out in point (i)
above and shall not retain any copies thereof, except that the system integrator shall be permitted
to retain one copy of such materials for archival purposes only.
c. Before the expiry of the exit management period, unless otherwise provided under the MSA,
KHDC or its nominated agencies shall deliver to the system integrator all forms of system
integrator confidential information which is in the possession or control of KHDC or its
nominated agencies or its users.
Employees
a. Promptly on reasonable request at any time during the exit management period, the system
integrator shall, subject to applicable laws, restraints and regulations (including in particular those

relating to privacy) provide to Client or its nominated agencies a list of all employees (with job
titles) of the system integrator dedicated to providing the services at the commencement of the
exit management period;

b. Where any national, regional law or regulation relating to the mandatory or automatic transfer of
the contracts of employment from the system integrator to the KHDC or its nominees, or a
Replacement of system integrator ("Transfer Regulation") applies to any or all of the employees
of the system integrator, then the Parties shall comply with their respective obligations under such
Transfer Regulations.

c. To the extent that any Transfer Regulation does not apply to any employee of the system
integrator, the KHDC or its nominated agencies, or its Replacement system integrator may make
an offer of employment or contract for services to such employee of the system integrator and the
system integrator shall not enforce or impose any contractual provision that would prevent any
such employee from being hired by the KHDC or its nominated agencies or any Replacement
system integrator.
Transfer of certain agreements

a. On request by the Client or its nominated agencies, the system integrator shall effect such
assignments, transfers, innovations, licenses and sub-licenses as the Client may require in favour
of KHDC or its nominated agencies, or its Replacement system integrator in relation to any
equipment lease, maintenance or service provision agreement between system integrator and third
party lessors, system integrators, or system integrator, and which are related to the services and
reasonably necessary for the carrying out of replacement services.
Right of Access to Premises
a. At any time during the exit management period, where Assets are located at the system
integrator's premises, the system integrator will be obliged to give reasonable rights of access to
(or, in the case of Assets located on a third party's premises, procure reasonable rights of access
to) KHDC or its nominated agencies, and/or any Replacement system integrator in order to
inventory the asset or assets.
b. The system integrator shall also give the KHDC or its nominated agencies, or any Replacement

system integrator right of reasonable access to the system integrator's premises and shall procure
the KHDC or its nominated agencies and any Replacement system integrator rights of access to
relevant third party premises during the exit management period and for such period of time
following termination or expiry of the MSA as is reasonably necessary to migrate the services to
KHDC or its nominated agencies, or a Replacement system integrator.
General Obligations of the System Integrator
a. The system integrator shall provide all such information as may reasonably be necessary to effect
as seamless a handover as practicable in the circumstances to KHDC or its nominated agencies or
its replacement system integrator and which the system integrator has in its possession or control
at any time during the exit management period.

b. For the purposes of this Clause, anything in the possession or control of any system integrator or
associated entity is deemed to be in the possession or control of the system integrator.

c. The system integrator shall commit adequate personnel to comply with its obligations under this
Exit Management Clause.
Exit Management Plan
a. The system integrator shall provide the Client or its nominated agencies with a recommended exit
management plan ("Exit Management Plan") which shall deal with at least the following aspects
of exit management in relation to the MSA as a whole and in relation to the Project
Implementation, the Operation and Management SLA and SOWs.

a) A detailed programme of the transfer process that could be used in conjunction with a
Replacement system integrator including details of the means to be used to ensure continuing
provision of the services throughout the transfer process or until the cessation of the services
and of the management structure to be used during the transfer; and
b) Plans for communication with such of the system integrator's staff, suppliers, customers and
any related third party as are necessary to avoid any material detrimental impact on KHDCs
operations as a result of undertaking the transfer; and

c) If applicable, proposed arrangements for the segregation of the system integrator's networks
from the networks employed by KHDC or its nominated agencies and identification of
specific security tasks necessary at termination; and
d) Plans for provision of contingent support to the Client or its nominated agencies, and
Replacement system integrator for a reasonable period after transfer for the purposes of
providing service for replacing the Services.

b. The system integrator shall re-draft the Exit Management Plan annually thereafter to ensure that it
is kept relevant and up to date.

c. Each Exit Management Plan shall be presented by the system integrator to and approved by the
KHDC or its nominated agencies.

d. In the event of termination or expiry of MSA, Project Implementation, Operation and

Management SLA or SOWs each Party shall comply with the Exit Management Plan.

e. During the exit management period, the system integrator shall use its best efforts to deliver the
services.

f.

Payments during the Exit Management period shall be made in accordance with the Terms of
Payment Clause.

This Exit Management plan shall be furnished in writing to the KHDC or its nominated agencies
within 90 days from the Effective Date of MSA.

Insurance Requirement
a. The system integrator shall maintain standard forms of comprehensive insurance including
liability insurance, system and facility insurance and any other insurance for the personnel, assets,
data, software, etc. and submit the list of all the insured items to KHDC prior to the start of

operations. The operator shall take and keep effective all the insurances during the period of the
Contract.

b. The successful bidder shall obtain policy of insurance in respect of claims for personnel injury to
or death of any person employed by the system integrator and arising out of such employment
Notices
Any notice given by one party to the other pursuant to this Contract shall be sent to the other
party in writing by post or by telex, cable or facsimile and confirmed in writing to the partys
address. A notice shall be effective from the date when delivered, tendered or affixed on notice
board whichever is earlier.

Software Licenses
The paper licenses of all software to be deployed as part of the project would be in the name of
the KHDC, and the original copy of the same shall be deposited by the successful bidder at the
KHDCs office after signing of the contract and before the installation of the software at any of
the sites, and the licenses are found run time use only.

Intellectual Property of the Application Software

Application software, source code of the application software, database used by the application
software and all documentation of the application software would be the whole and sole
intellectual property of the KHDC. The system integrator shall maintain the IPR of the KHDC for
the complete contract period and shall transfer it back to the KHDC or its nominated agency
during the Transfer stage at the end of the contract. Following conditions apply:

i. Ownership and Title: Title to the minor enhancements, point updates and
documentation, including ownership rights to patents, copyrights, trademarks and trade
secrets therein shall be the exclusive property of KHDC. Once the software is customized
as per the requirements of the KHDC, the ownership of intellectual property of the
software will be held by the KHDC only.

ii. Reverse Engineering: The operator shall not reverse engineer any minor, major
enhancement or point update.
iii. Confidentiality: The system integrator hereby acknowledges that the minor
enhancements, point updates, and documentation may contain information that may be
trade secret and proprietary to the KHDC. The system integrator hereby agrees not to
disclose such information except to persons and organizations expressly authorized by the
Client to receive such information. The system integrator shall not remove or alter any
copyright notices or proprietary legends affixed by the Client to such minor
enhancements, point updates or documentation.

iii. Copies: The system integratorshall make available to the Client an additional copy of the
minor enhancements, point updates and documentation for back-up use on the Computer.

iv. Limitation of Damages: The system integrator shall not be liable for any failure to
perform its services because of circumstances beyond the control of system integrator,
where such circumstances shall include (without limitation) natural disaster, terrorism,
labour disputes, war, declarations of governments, transportation delays, and misuse of
the Software by the KHDC.

Obligations of the selected agency(s)

a. The selected system integrator shall be obliged to work closely with the KHDC, act within its
own authority and abide by directives issued by the KHDC authorities.

b. The selected system integrator shall abide by the job safety measures prevalent in India and
will free KHDC from all demands or responsibilities arising from accidents or loss of life the
cause of which is the system integrators negligence. The system integrator will pay all
indemnities arising from such incidents and will not hold KHDC responsible or obligated.

c. The selected system integrator will treat as confidential all data and information, obtained in
the execution of his responsibilities, in strict confidence and will not reveal such information
to any other party without the prior written approval of KHDC.

d. The selected system integrator shall install and use only the recommended / supplied software
in specified quantities during the period of the contract.

e. The set up and the manpower deployed shall be dedicated for the use of KHDC work only. It
shall not be used for any other purpose during or after office hours or holidays.

f.

The contract shall not be assigned or sublet to any third party without the written approval of
the KHDC.

g. The selected system integrator must handle carefully all the equipments and work. It should
not affect the normal working of KHDC office. Right time attendance and work are important;
otherwise it shall be treated as non-cooperation to KHDC, which will be liable for termination
of contract.
h. The system integrator shall comply with all rules regulations byelaws and directions given
from time to time by any local or public authority in connection with this work and shall pay
fees or charges that are levied on him without any extra cost to the Client.
Inspection & Test
a. KHDC and/or its representative reserve the right of inspection and testing of the goods prior to
delivery and after delivery at the site, or at any time during the period of the contract.
b. KHDC reserves the right to inspect, test and, wherever necessary, reject the Goods after the
Goods arrival at Project Site. This shall in no way be limited or waived by reason of the
Goods having previously been inspected, tested and passed by KHDC or its representative
prior to the Goods shipment.
Warranty
1. Warranty & Maintenance
The Successful Bidder shall also provide complete maintenance support for all the proposed IT
software solution components as outlined in this RFP for a minimum of 5 years from the date of golive.

e. During the warranty period, the bidder shall warrant that the goods supplied under the contract are
new, unused, of the latest release version/ models at the time of delivery and incorporate all recent
improvements in design and materials, unless provided otherwise in the contract. The bidder
further warrants that the goods supplied under this contract shall have no defects arising from
design, materials or workmanship.

f.

KHDC shall promptly notify the successful bidder in writing of any claims arising under this
warranty. Upon receipt of such notice, the bidder shall, within the warranty period and with all
reasonable speed, repair or replace the defective systems, without costs to the KHDC and within
the time specified and acceptable to KHDC.

g. If the successful bidder, having been notified, fails to remedy the defect(s) within the period
specified in the contract, KHDC may proceed to take such reasonable remedial action as may be
necessary, at the successful bidders risk and expense and without prejudice to any other rights,
which KHDC may have against the bidder under the contract.

h. During the warranty period, the successful bidder will provide all product(s) and documentation
updates, patches/ fixes, and version upgrades within 15 days of their availability and should carry
out installation and make operational the same at no additional cost to KHDC.

i.

The successful bidder hereby warrants KHDC that:

a) The proposed IT solution represents a complete, integrated solution meeting all the
requirements as outlined in the RFP and further amendments if any, and provides the
functionality and performance, as per the terms and conditions specified in the contract.
b) The proposed IT solution will achieve parameters delineated in the technical specification/
requirement and shall be appropriately integrated to meet the proposed Project requirements.
c) The successful bidder undertakes to ensure the maintenance of the acceptance
criterion/standards in respect of the systems during the warranty period.
d) The system integrator shall provide the warranty for Application Software supplied for a

period of five years on all the items supplied as per the contract from Go-Live. The supplied
system software shall carry warranty/support as per the agreement between the KHDC and
the software OEMs.
2. Warranty services from sub-contractors
a. If the system integrator is offering solutions/products from other system integrators, they shall
detail the responsibilities of the parties involved and also submit a letter of undertaking from the
parties mentioning their consent and assurance for satisfactory support of their product or services
during the Warranty period.
Delivery & Documents
Delivery of Goods shall be made by the selected system integrator strictly in accordance with the
specifications of the tender document or in case of deviations, the specifications approved and
accepted by the KHDC.
Third Party Claims
The selected system integrator(s) shall indemnify KHDC against all third-party claims of
infringement of patent, trademark or industrial design rights arising from use of the Goods or any
part thereof in India.
Ownership of Equipments
a.

All the equipments procured from the selected agency(s) by KHDC shall virtually have the
right to use of the property throughout the contract period though the ultimate transfer may
come much later, after the expiry of the contract period. The selected agency will therefore not
shift, move, and transfer the equipments without the prior consent of the KHDC. Such a
request by the system integrator should be made with suitable justification and reasoning.
However, the system integrator will be allowed to carry out normal maintenance activities as
scheduled. It should be noted that if equipment has to be replaced, the replacement must have a
manufacturing date later than the equipment being replaced and the configuration of the
replacement should be same or higher. Information about all such replacements along with
reasons for should be provided in writing to KHDC.

b.

Ownership of all the data created during the period of contract shall be the property of the
KHDC, however, the responsibility of its maintenance, updation, correctness and backup
would be that of system integrator.

c.

No third party interest in any form (lien, mortgage, hypothecation etc.) without the prior
approval and consent of the KHDC, can be created on the assets, equipments etc. installed by
the selected agency(ies).

d.

Resident Project Leader / Manager

e.

The system integrator is required to ensure that at least one Senior Staff (Project Leader /
Project Manager) who is capable of decision making and required coordination on day-to-day
operations of the project are seated full-time at KHDC Office at Bengaluru, for the entire
duration of the project.

Prevention of Corrupt or Fraudulent Practices

KHDC requires that agencies observe the highest standards of ethics during the procurement
and execution of such contracts. In pursuance of this policy, KHDC:
a. Defines for the purposes of this provision, the terms set forth as follows:
a) Corrupt practice means offering, giving, receiving or soliciting of anything of value
to influence the action of the public official in the procurement process or in contract
execution; and
b) Fraudulent practice means a misrepresentation of facts in order to influence a
procurement process or execution of a contract to the detriment of KHDC, and
includes collusive practice among agencies (prior to or after bid submission) designed
to establish bid prices at artificial non-competitive levels and to deprive KHDC of the
benefits of the free and open competition;

b. Will reject a proposal for award if it determines that the system integrator recommended for
award has engaged in corrupt or fraudulent practices in competing for the contract in question;

c. Will declare a firm ineligible, either indefinitely or for a stated period of time, to be awarded a
contract if it at any time determines that the firm has engaged in corrupt and fraudulent
practices in competing for, or in executing, a contract.

d. The past performance of the bidder will be cross-checked if necessary. If the facts are proven
to be dubious the bidders tender will be ineligible for further processing.

e. The selected system integrator shall hire employees only after checking past records. The data
generated out of transactions shall not be misused in any way. All the software used must be
duly licensed.
Interpretation of Clauses
a.

In case of any ambiguity in the interpretation of any of the clauses in the tender document, the
interpretation of the clauses by Authorized Representative of KHDC, Government of
Karnataka, Undertaking shall be final and binding on all parties.

General Requirement
a.
The workmanship shall be absolutely first class. Bad workmanship shall be rectified or
replaced at no extra cost.

b.

The Bidder should make his own arrangements to obtain all the material required for this work
such as hoists, ladders, scaffolding, stools, tackles, and all transport for labor, materials etc.

Performance Bank Guarantee

a.
The successful bidder shall at their own expense deposit with KHDC, within fifteen (15)
working days of the date of notice of award of the contract or prior to signing of the contract
whichever is earlier, an unconditional and irrevocable Performance Bank Guarantee (PBG)
from a scheduled commercial bank with a net worth of more than 1000 Crores, acceptable to
KHDC, in the format prescribed in the Annexure, payable on demand, for the due performance
and fulfilment of the contract by the bidder. Failure to submit the PBG within the specified
period by the bidder may be construed as non-acceptance of the contract and failure to comply
with the terms and conditions of the RFP, leading to the forfeiture of the entire EMD amount.
b.

This Performance Bank Guarantee will be for an amount equivalent to 5% of total contract
value, which shall be submitted by the SI upon signing the contract. PBG should be valid for
entire term of the contract. PBG shall be invoked by KHDC in the event Implementation
Agency (i) fails to meet the milestones provided for in the Time Schedule for Implementation

and Operations contained in this RFP or any changes agreed between the parties, (ii) fails to
perform the responsibilities and obligations as set out in this RFP to the complete satisfaction
of the KHDC, (iii) misrepresentations of facts/information submitted to the KHDC.
c.

All incidental charges whatsoever such as premium; commission etc. with respect to the
performance bank guarantee shall be borne by the bidder. The performance bank guarantee
shall be valid for 66 months from date of signing the contract. If the project implementation/
go-live is delayed, the PBG shall be extended by the SI for such additional duration. Go-live
is the date on which the proposed IT Solution is completely operational as per the requirements
provided in this RFP and all the acceptance tests are successfully concluded to the satisfaction
of KHDC. The performance bank guarantee may be discharged/ returned by KHDC upon being
satisfied that there has been due performance of the obligations of the bidder under the
contract.

d.

In the event of the bidder being unable to service the contract for whatever reason, KHDC
would invoke the PBG. Notwithstanding and without prejudice to any rights whatsoever of
KHDC under the contract in the matter, the proceeds of the PBG shall be payable to KHDC as
compensation for any loss resulting from the bidders failure to perform/comply its obligations
under the contract. KHDC shall notify the bidder in writing of the exercise of its right to
receive such compensation within 7 (Seven) days, indicating the contractual obligation(s) for
which the bidder is in default.

e.

KHDC shall also be entitled to make recoveries from the bidders bills, performance bank
guarantee, or from any other amount due to him, an equivalent value of any payment made to
him due to inadvertence, error, collusion, misconstruction or misstatement.

Failure to agree with the Terms & Conditions of the RFP

a.

Failure of the successful bidder to agree with the Terms & Conditions of the RFP shall
constitute sufficient grounds for the annulment of the award, in which event KHDC may award
the contract to the next best value bidder or call for new proposals.

b.

The KHDC may blacklist the said bidder from participating in any tender process of the KHDC
for a period of seven years.

Automation of KHDC Activities

KHDC operations can be bifurcated broadly into two categories i.e.,

1. Operational Management System

2. Warehouse to retail outlet management system
Both the systems should be implemented in parallel to achieve overall efficiency results

Operational Management System

Activities under Operational Management System can be broadly visualized as under.
The root cause for any operation to trigger is Sales. Sales drives production.
1. Production Automation
a. Raw material management
b. Pre loom processing management
c. Manpower management
d. Project, subproject, sub-centre, die-house management
e. Requirement fulfilment management.
f.

Production Forecasting

2. Purchase automation
a. Purchase planning
b. Purchase Fulfilment Automation
c. Purchase to delivery tracking( old purchase to delayed delivery tracking )
d. Approval management
3. Project management
a. Production tracing at sub-centre level
b. Weaver management
c. Sub centre management
d. Stock management
e. Dye house stock management

f.

Staff salary management

g. FG Goods management
h. Account Management
4. Financial management
a. Projects
b. Regional office
c. Head office, projects, subprojects, diehouses, ptph, pph, raw material bank and all
branches of KHDC where computer operations take place
5. Quality control
6. Planning and development
a. Scheme management
b. Schemes from government institutions management
c. Funds projection
7. Costing Management
8. Weaver passbook management system
a. Looms and accessories
b. Conversion charges management
c. Loan management

The above process differs in some magnitude for both silk and cotton based projects. Separate
implementation flows are required to cater to both silk and cotton based procurement, production and
Purchase
supply to Warehouses.
Production
(Purchase planning, Purchase
Marketing Indent
Fulfillment Automation,
Purchase to delivery tracking,
Approval management,
Quality control)

High level automation diagram

Projects/ sub projects

Warehouse

Procurement process

Production System

Projects to warehouse workflow

FG Hubli warehouse ( multifunctional warehouse acting as warehouse and storage house for ssds
scheme )

Projects subprojects at various levels

Raw material gowdowns

Silk projects

Finance Accounting Automation

Warehouse to retail outlet management system

Activities under Warehouse to retail outlet management to be computerized
1. Warehouse management
a. Individual warehouse management
b. Processing house management
c. Third party processers management
d. Accounts management
e. Put away
f. Transfers
g. Inventory management
2. Account management system
a. Corporate Accounts
b. Overall Financial account management
3. Wholesale
a. Rate management
b. Account Management
4. Retail sale distribution management
a. Sales forecasting
b. Marketing vendor management
c. Rebate management
d. Sales performance calculator
5. Retail - Outlet management
a. Point of sale
b. Finance management
c. Inventory management
6. Inventory management
a. Overall Inventory management linkup
b. Cycle counting and physical counting
7. SKU Management
a. Discounts
b. Product pricing module
8. Scheme management
9. Admin management
a. Management of employee basic database
10. Costing solution
a. Costing management(Running and fixed width/FG) for goods

Inventory System

Wholesale processing

Assumptions
Financial systems are required in every place. In addition financial management system is required at
hubli office and Bangalore office.
In addition 150 barcode scanners and 60 barcode printers with basic stationary is required to setup the
system.
Complete ERP / workflow system is required to join the warehouses to POS system at retail

Bidders are request to quote the software development, implementation, training costs under
one head and hardware (barcode scanners and printers) under a different head.
Bidders are requested to furnish all the details as mentioned earlier in the document with
detailed technical presentation so as to enable smooth selection of bidders.