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REQUEST FOR PROPOSAL

FOR

THE

PROCUREMENT OF CDE BATTERY FOR

KOMPSAT-3A SATELLITE

RFP NO. KARI-12-76

May, 2012

Korea Aerospace Research Institute

115 Gwahangno, Yuseong-Gu, Daejeon 305-333, Korea

Phone: +82-42-860-2374, Fax: +82-42-870-3759

E-mail: sblim@kari.re.kr

REQUEST FOR PROPOSAL

FOR

THE

PROCUREMENT OF CDE BATTERY FOR

KOMPSAT-3A SATELLITE

May, 2012

Korea Aerospace Research Institute

115 Gwahangno, Yuseong-Gu, Daejeon 305-333, Korea

Phone: +82-42-860-2374, Fax: +82-42-870-3759

E-mail: sblim@kari.re.kr

KARI proprietary

The data/information contained in this document shall not be disclosed, distributed or reproduced, in whole or in part, to third

parties without a written approval of KARI

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TABLE OF CONTENTS

ACRONYMS AND DEFINITIONS

PART I.

INTRODUCTION ............................................................................................. 6

1. KARI CDE (COOLER DRIVE ELECTRONICS) BATTERY PROGRAM ....................................... 6
2. KEY SCHEDULE OF THE CDE BATTERY PROGRAM ............................................................. 6
3. OBJECTIVE OF RFP ......................................................................................................... 6
4. STRUCTURE OF THE RFP ................................................................................................. 7

PART II.

GENERAL INSTRUCTIONS FOR PROPOSAL ...................................................... 8

1. QUALIFICATION OF BIDDER............................................................................................... 8
2. SUBMISSION OF PROPOSAL .............................................................................................. 8

2.1 Proposal Format ................................................................................................... 8
2.2 Number of Copies ................................................................................................. 9
2.3 Bid Closing Date ................................................................................................... 9
2.4 Method of Proposal Submission............................................................................ 9
2.5 Point of Contact .................................................................................................. 10
2.6 Statement of Compliance .................................................................................... 10

3. VALIDITY OF PROPOSAL ................................................................................................. 10
4. BID BOND 11

4.1 Amount of Bid Bond and validity.......................................................................... 11
4.2 Bid Bond Establishment Method ......................................................................... 11
4.3 Bid Bond Return ................................................................................................. 11
4.4 Contractor’s Bid Bond ......................................................................................... 11

5. QUESTIONS AND MODIFICATIONS .................................................................................... 12
6. NO CONTRACTUAL OBLIGATION ..................................................................................... 12
7. ACCEPTANCE/REJECTION OF BIDS ................................................................................. 12
8. EVALUATION OF PROPOSAL............................................................................................ 13

8.1 Evaluation Process ............................................................................................. 13
8.2 Evaluation Factors .............................................................................................. 14
8.3 Pricing Requirements .......................................................................................... 14
8.4 Successful Bidder and Negotiation ..................................................................... 14
8.5 Evaluation and Contract Schedule ...................................................................... 15

9. CONTRACT  15
10. LANGUAGE AND MEASUREMENT UNITS ......................................................................... 15
11. CERTIFICATES AND GOVERNMENT APPROVALS .............................................................. 15
12. CONFIDENTIALITY ........................................................................................................ 16
13. WITHDRAWAL OF PROPOSAL ........................................................................................ 16
14. PROPERTY OF PROPOSAL ............................................................................................ 16
15. EXPENSES  16
16. GOVERNING LAW ......................................................................................................... 16
17. ARBITRATION............................................................................................................... 16
18. RECEIPT OF RFP PACKAGES ............................ 오류!  책갈피가  정의되어  있지  않습니다.
19. REGISTRATION OF INTENT ............................................................................................ 17

PART III.

SUGGESTED PROPOSAL ............................................................................. 18

Chapter 1: Executive Summary ................................................................................ 18
Chapter 2: Technical Proposal .................................................................................. 18
Chapter 3: Management Proposal ............................................................................ 19

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Chapter 4: Statement of Work Proposal .................................................................... 21
Chapter 5: Warranty and Maintenance Proposal ....................................................... 21
Chapter 6: Draft Contract Proposal ........................................................................... 21
Chapter 7: Price Proposal ......................................................................................... 22

PART IV.

WARRANTY AND MAINTENANCE .................................................................. 23

Chapter 1: Warranty .................................................................................................. 23
Chapter 2: Maintenance ............................................................................................ 23

APPENDICES

APPENDIX A. TERMS AND CONDITIONS

APPENDIX B. EQUIPMENT SPECIFICATION

APPENDIX C. STATEMENT OF WORK

APPENDIX D. ENVIRONMENT SPECIFICATION
APPENDIX E. PRODUCT ASSURANCE REQUIREMENT
APPENDIX F. BUS EMC REQUIREMENTS SPECIFICATION

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Acronyms and Definitions

PSR

Pre-Shipment Review

Qualification Model

AIT

Assembly, Integration, and Test

CDR

Critical Design Review

CDRL

Contract Data Requirements List

CD-ROM

Compact Disc, read-only-memory

CFI

Customer Furnished Item

CWBS

Contract Work Breakdown Structure

Each

EDC

Effective Date of Contract

EGSE

Electrical Ground Support Equipment

EPS

Electrical Power Subsystem

ESR

Equipment Suitability Review

EUT

Equipment Under Test

Flight Model

GEO

Geosynchronous Earth Orbit

Height

ICD

Interface Control Document or Drawing

IEEE

Institute of Electrical & Electronics Engineers

KARI

Korea Aerospace Research Institute

KOMPSAT

Korea Multi-Purpose Satellite

LAN

Local Area Network

LEO

Low Earth Orbit

M&C

Monitor and Control

MRR

Manufacturing Readiness Review

Product Assurance

PDR

Preliminary Design Review

PMO

Program Management Office

PMP

Program Management Plan

POC

Point of Contact

RFP

Request for Proposal

ROK

Republic of Korea

CDE Battery

Cooler Drive Electronics Battery

S/C

Spacecraft

SDRL

Subcontract Data Requirements List

SITC

Satellite Integration & Test Center

SOW

Statement of Work

SRR

System Requirements Review

TBD

To Be Determined

TBR

To Be Revised/Reviewed

TRR

Test Readiness Review

USB

Universal Serial Bus

Width

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PART I.

INTRODUCTION

1. KARI CDE (Cooler Drive Electronics) Battery Program

1.1 KARI (Korea Aerospace Research Institute) is located at Dae-duk Research Complex

in Daejeon, 140 km south of Seoul. KARI was established in 1989 with the funding of

the Korea government, in accordance with the Aerospace Industry Promotion Act.

Since KOMPSAT-1 (Korea Multi-Purpose Satellite-1), KOMPSAT-2, and the geo-

stationary satellite COMS (Communication, Ocean, and Meteorology Satellite) were

successfully launched in 1999, 2006, and 2010, respectively, KARI is developing

KOMPSAT-3, KOMPSAT-5, and KOMPSAT-3A at present.

1.2 The CDE Battery is one of the EPS (Electrical Power Subsystem) units in KOMPSAT-

3A and will be installed in KOMPSAT-3A bus. The CDE Battery acts as an energy

buffer to stabilize the power system of KOMPSAT-3A.

1.3 The CDE Battery program is based on Turn-key such that the Contractor shall take all

responsibilities of design, manufacturing, assembly, integration, testing activities, etc.

for the CDE Battery program.

1.4 The CDE Battery program requests for the procurement of two (2) CDE Batteries, i.e.,

one (1) FM CDE Battery and one (1) QM CDE Battery.

2. Key Schedule of the CDE Battery Program

The CDE Battery Program for two (2) CDE Batteries procurement shall be progressed

with the major milestones as follows:

l  Effective Date of Contract (EDC): July 2012 (TBD)
l  Equipment Suitability Review (ESR): July 2012 (TBD)
l  Critical Design Review (CDR): October 2012 (TBD)
l  Manufacturing Readiness Review (MRR): December 2012 (TBD)
l  Test Readiness Review (TRR): March 2013 (TBD)
l  Pre-Shipment Review (PSR) and Delivery: May 2013

For tentative payment schedule, refer to the Article 6.1 in Appendix A.

3. Objective of RFP

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This Request for Proposal (RFP) explains the procedures to be taken by Bidders who are

willing to provide the CDE Battery. Bidders are highly recommended to submit the Proposal

in accordance with the guidelines and instructions as contained in the RFP.

4. Structure of the RFP

This RFP consists of the following four parts and four appendices:

PART I

INTRODUCTION

PART II

GENERAL INSTRUCTIONS FOR PROPOSAL

PART III

SUGGESTED PROPOSAL

PART IV

WARRANTY AND MAINTENANCE

APPENDICES

APPENDIX A TERMS AND CONDITIONS

APPENDIX B EQUIPMENT SPECIFICATION

APPENDIX C STATEMENT OF WORK

APPENDIX D ENVIRONMENT SPECIFICATION

APPENDIX E PRODUCT ASSURANCE REQUIREMENT

APPENDIX F BUS EMC REQUIREMENTS SPECIFICATION

Only the body of this RFP and appendix A are distributed when the bid for CDE Battery

Program is announced. Appendices B, C, D, E, and F are only distributed to Bidder, who

sent Letter of Intent for CDE Battery Program to KARI, after the Bidder signs the non-

disclosure agreement (NDA).

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PART II.

GENERAL INSTRUCTIONS FOR PROPOSAL

1. Qualification of Bidder

1.1 Bidder shall have direct knowledge and first-hand experience in developing the

Lithium-ion battery for the low orbit and earth observation satellite and business

record to sell such a battery at least five (5) times as of the Bid Closing Date.

1.2 Bidder shall be in possession of the necessary licenses, in effect as of the Bid

Closing Date, required for development and delivery of such battery as described in

this RFP.

1.3 The qualifying statement for the above requirements and supporting materials shall

be included in the Proposal. Additional qualifying evidence may be requested to

substantiate Bidder’s qualification during the evaluation period.

1.4 The qualification of the Bidder is solely the KARI Evaluation Committee’s

discretion so that any Bidder shall not raise any objection regarding the KARI

Evaluation Committee’s decision thereupon.

2. Submission of Proposal

2.1 Proposal Format

2.1.1 Bidder shall submit the Proposal organized in the following chapters with any

other required certificates and evidences under this RFP:

- Chapter 1 Executive Summary

- Chapter 2 Technical Proposal

- Chapter 3 Management Proposal

- Chapter 4 Statement of Work Proposal

- Chapter 5 Warranty and Maintenance Proposal

- Chapter 6 Draft Contract Proposal

- Chapter 7 Price Proposal (to be submitted in a separately sealed envelope,

two (2) copies)

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The detailed instructions for each chapter can be found in Part III Suggested

Proposal of this RFP. It is required that Bidders submit the Proposal in the same

sequence as instructed in the Suggested Proposal.

2.1.2 The total number of pages of the Proposal shall not exceed 200 pages excluding

references.

2.2 Number of Copies

Excluding the Price Proposal, the Proposal shall be submitted in one (1) original

hard copy marked as “Original Copy” on the cover and seven (7) hard copies. In

addition to the hard copies, three (3) soft copies of electronic files (one (1) in MS Office

format and two (2) in PDF format) of the Proposal shall be submitted in the form of

CD-ROM. And one (1) original hardcopy marked as “Original Copy” on the cover and

one (1) softcopy as a PDF format shall be submitted in separately sealed envelope.

Bidders do not need to submit the electronic file of the Price Proposal. In case of any

discrepancies between the hard copy and soft copy, the hard copy shall prevail.

2.3 Bid Closing Date

The closing date and time for the Proposal is specified in the bid summary. If any

part of the Proposal as required under this RFP is submitted after the stipulated closing

time, the entire Proposal will not be accepted.

2.4 Method of Proposal Submission

The Proposal shall be hand-carried or sent via appropriate courier service to the

following personnel or his designee:

Mr. Jae-Seok LEE

Procurement Team

Korea Aerospace Research Institute

169-84 Gwahangno (Eoeun-Dong), Yuseong Gu

Daejeon 305-806, Korea

Tel) 82-42-860-2613

Fax) 82-42-860-2666

E-mail) jslee78@kari.re.kr

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2.5 Point of Contact

KARI’s point of contact for contractual matter is the same as paragraph 2.4 and

KARI’s point of contact for technical matter is as follows;

Seong-Bin LIM, Ph. D.

Head of KOMPSAT-3A SE & I Team

Korea Aerospace Research Institute

169-84 Gwahangno (Eoeun-Dong), Yuseong Gu

Daejeon 305-806, Korea

Tel: 82-42-860-2374

Fax: 82-42-870-3759

E-mail: sblim@kari.re.kr

Bidder shall specify its single point of contact in the Chapter 1 Executive Summary

of the Proposal to communicate in conjunction with the RFP, Proposal, subsequent

evaluation, and so forth. Bidder’s information on the point of contact shall include the

name, title/position, address, telephone no., facsimile no., and e-mail address.

2.6 Statement of Compliance

This RFP shall legally bind Contractor after the Contract is awarded unless the

Bidder explicitly expresses the differences from the RFP in the Compliance matrix

(Refer to Section 9 “Contract” in this chapter).

Bidder shall state any compliance or non-compliance in regard to the requirements

and/or instructions of this RFP in the form presented in Chapter 1 of Part III in this RFP.

Every paragraph and subparagraph shall be listed, and the compliance, non-compliance,

or partial compliance to the requirements and/or instructions in the RFP shall be

declared. The Statement of Compliance shall be included in Chapter 1 Executive

Summary of the Proposal.

3. Validity of Proposal

Proposals shall be valid for one (1) year from the Bid Closing Date. It can be

extended up to six (6) months with KARI’s written request.

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4. Bid Bond

4.1 Amount of Bid Bond and validity

Bidder shall establish a bid bond in favor of KARI no later than the Bid Closing

Date and submit the certificate to KARI along with its Proposal. The total amount of the

bid bond shall be at least five (5) percent of the total bidding price. The bond shall

remain valid until the Proposal validity period as specified in above Section 3. It shall

be also extended up to six (6) months, if the Proposal validity is extended with KARI’s

written request as per above Section 3.

4.2 Bid Bond Establishment Method

The Bid Bond in Section 4.1 shall be established in the form of an irrevocable letter

of credit by the first class international bank and advised through the Woori Bank

Daejeon Branch (address: 1495 Dunsan-dong, Seo-gu, Daejeon, Korea, Tel.: 82-42-

488-9704, ext. 313/Fax: 82-0505-003-0759). The Bid Bond shall be available by

KARI's draft at sight drawn on the Bank, accompanied by the statement of KARI stating

that Bidder has refused to enter into a Contract with the terms and conditions in the

Proposal as amended, if any, that Bidder has hindered the fair bidding by fraud or

misrepresentation, or that Bidder has withdrawn its Proposal after the Bid Closing Date.

The Bid Bond shall contain the substantial part of the terms and conditions of the Bid

Bond, date of establishment, account, amount, payment terms, and date of expiry, etc.

4.3 Bid Bond Return

The bid bonds except for those of the Successful Bidder and the Bidder in the next

ranking in the evaluation will be released upon the instructions of KARI to the

Unsuccessful Bidders, without interest, promptly after KARI’s selection of the

Successful Bidder. In the event that KARI decides not to enter into a Contract after the

selection of the Successful Bidder, the bid bonds of the Successful Bidder and the

Bidder in the next rank will be likewise released. When the Contract with Successful

Bidder is executed, the bid bond of the Bidder in the next rank will be released.

4.4 Contractor’s Bid Bond

When the Contract with Successful Bidder is executed, the bid bond of the

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Successful Bidder may be released and Successful Bidder as Contractor shall provide

the performance bond to KARI in accordance with the provision of Contract.

5. Questions and Modifications

Any questions as to the intent and clarification of the RFP shall be directed to

KARI’s point of contact as specified in Section 2.4 and 2.5 of the Part II of this RFP by

fax or letter no later than ten (10) days before the Bid Closing Date. However, for

convenience and fast response, e-mail is also available in advance of fax or letter.

After the Bid Closing Date, Bidders shall neither amend, modify, or supplement the

Proposal, nor submit any other documents to KARI, except KARI's written request.

KARI may ask each Bidder in writing for clarifications, amendments, revisions, or

supplementation of the Proposal and any other documents submitted by Bidder at any

time and for additional information or documents necessary for the evaluation of

Proposal.

6. No Contractual Obligation

This RFP shall not be interpreted as an offer for a contract or any type of guarantee

by KARI. It is KARI's sole discretion whether or not to allow the contract award to any

Bidder. KARI owes no responsibility or obligation to select the Contractor among

Bidders.

This solicitation for the Proposal shall neither be construed to create an obligation

on KARI to enter into a contractual instrument, nor shall it serve as a basis for any

claim for reimbursement of costs for the effort to prepare, submit, amend, revise or

supplement the Proposal, and other related documents expended by the Bidder

regardless of whether or not the Bidder is successful in receiving an award as a result of

the solicitation.

7. Acceptance/Rejection of Bids

KARI reserves the right to accept or reject any bidding, and to amend the bidding

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process and reject this bidding at any time prior to the award of the Contract without

any liability to the affected Bidder(s), and KARI is not under any obligation to inform

the affected Bidder(s) of the background for its action.

8. Evaluation of Proposal

The evaluation of the Proposals will be made by the KARI Evaluation Committee.

The following evaluation process is for information only, and KARI reserves the right

to modify the process without any prior notification to Bidders.

8.1 Evaluation Process

During the Bid evaluation, KARI may send Bidders a set of questions for

clarification or request any supplement to the Proposals, and the evaluation will be

made based on the Proposal, the answers to the questions, and the supplements received

from Bidders.

Major areas of evaluation will be following three (3) areas as a minimum: general

and management area, technical area, and price.

In general and management area, compliance to the RFP instructions, financial

capability, management capability and experience, major general contractual terms and

conditions, etc. will be evaluated.

In technical area, technical capability to comply with the technical requirements in

the RFP, technical heritage and experience, interface with satellite system, technical

documentation and delivery plan, test and validation plan, contractor’s Product

Assurance (PA) system and PA plan, etc. will be evaluated.

Price will be one of the major areas of evaluation, along with the other areas.

As a result of overall evaluation of the Proposal including price, KARI will select

the Successful Bidder that is best qualified and compliant with the requirement of the

RFP. At the time the Successful Bidder is selected, the ranking of the other Bidders will

also be determined.

The selection of the Successful Bidder is solely the KARI evaluation committee’s

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decision, and unsuccessful bidders shall not raise any objection regarding the evaluation

committee’s decision.

8.2 Evaluation Factors

The on-time delivery, compliance to the RFP requirements, technical capability

(including in-orbit heritage) of the Bidder, warranty, etc., are the critical elements in the

process of Qualified Bidders selection. After the Qualified Bidders are selected, the rank

of Successful Bidders is determined according to the KARI's discretion which takes

account for both the technical evaluation result and the price.

8.3 Pricing Requirements

Any price or rate proposed by Bidder shall be firm and fixed, not subject to change

for a price escalation for the entire period of the contract. And the currency quoted in

the Proposal shall be in U.S. dollars and shall be broken down as further detailed in

Chapter 7 of Part III in this RFP.

Any kinds of taxes and duties arising in connection with Bidder’s work under this

RFP and under the eventual Contract shall be Bidder’s responsibility, except for the

customs duties levied in Korea.

The price shall be inclusive of any cost or charge incurred due to delivery of any

equipment, hardware or documentation to KARI based on the DAT Incheon Airport

rule as stipulated in the INTERCOMS 2010.

8.4 Successful Bidder and Negotiation

Among the Qualified Bidders, the Successful Bidder will be selected by the KARI

Evaluation Committee through the Proposal evaluation process.

When the Successful Bidder is notified, the ranking of the other Bidders will also be

notified. Contract negotiation will be started with the Successful Bidder, and in the

event mutually agreeable terms and conditions are not reached with the Successful

Bidder in reasonable time, KARI may proceed to the Contract negotiations with the

next ranked Bidder without undertaking a new bidding process.

In case KARI initiates the Contract negotiation with the next ranked Bidder, the

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next ranked Bidder will occupy the position as the Successful Bidder and assume any

obligations imposed upon the Successful Bidder under this RFP. The same process may

go on to other next ranked Bidders.

8.5 Evaluation and Contract Schedule

The following is a tentative milestone for the evaluation and Contract, which may

be changed at KARI’s sole discretion.

· Selection of Successful Bidders: Bid Closing Date + 2 weeks

· Time limit for Contract negotiation with the Successful Bidder: Selection of

Successful Bidders + 15 calendar days

· Time limit for Contract negotiation with the next ranked Bidder: KARI will

notify the negotiation schedule dependent on the progress of Contract

negotiation with Successful Bidder.

9. Contract

The Contract will be effective subject to the Korean Government’s approval thereof.

10. Language and Measurement Units

The Proposal and any documents submitted to KARI under the RFP and

communication shall be in English and measurements and quantities shall be in

International System of Units.

11. Certificates and Government Approvals

Bidder shall receive the government approvals (e.g. export licenses) and certificates

from the relevant governments, necessary for all of the works relating to the delivery of

CDE Battery. Bidder's ability and plan to get such approval and certificates shall be

submitted to KARI, together with any appropriate assurance letters from the relevant

governments, in the Chapter 1 Executive Summary of the Proposal.

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12. Confidentiality

All elements of the RFP shall be kept confidential and the data/information

contained in this document shall not be disclosed, distributed or reproduced, in whole or

in part, to any third parties without a written approval of KARI.

13. Withdrawal of Proposal

Bidder may withdraw its Proposal at any time before the Bid Closing Date.

Withdrawal shall be made in written format and shall be received by KARI before the

Bid Closing Date (Refer to Section 4.2 “Bid Bond Establishment Method” in this

chapter).

14. Property of Proposal

All documents, data or information in any type of media submitted in response to

the RFP shall become the property of KARI and will be retained or disposed by KARI.

15. Expenses

Expenses incurred by Bidders in connection with the preparation, submission, any

subsequent clarification and negotiation activities shall be for their own account and

shall not be requested to KARI.

16. Governing Law

This RFP and the Contract shall be construed in accordance with and governed by

the laws of the Republic of Korea.

17. Arbitration

Any disputes, in relation to and under the RFP and Contract, shall be resolved

through arbitration in Seoul, Korea, under the Rules of the Korean Commercial

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Arbitration Board.

18. Registration of Intent and Receipt of RFP Packages

Bidders are requested to send the Letter of Intent to submit the Proposal by e-mail to

KARI within one (1) week from the announcement of the bid for CDE Battery Program.

The e-mail address is indicated in Section 2.4. When the bid for CDE Battery Program

is announced, only the body of this RFP and appendix A are distributed. Appendices B,

C, D, E, and F are only distributed to Bidder, who sent the Letter of Intent for CDE

Battery Program to KARI, after the Bidder signs the non-disclosure agreement (NDA).

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PART III. Suggested Proposal

The Proposal shall follow the order and format described in this part. The

Proposal shall also include the suggested contents.

Chapter 1: Executive Summary

Bidder shall present an outline of the key features of the Proposal including the

following;

- Summary of the Proposal

- Qualification of the Bidder

- Qualification of the Subcontractors

- Single Point of Contact

- Licenses (including export licenses) and Certifications

- Compliance matrix to this RFP, etc.

Bidder shall respond on every article in this RFP by using the compliance

matrix. The compliance matrix shall be in accordance with the format given below.

Table 3.1 Format of Compliance matrix

Title of the Document

Part/Chapter/Article/Page

Description/Requirement

Compliance

(C/PC/NC)

Remarks

Note] “C” means compliance, “PC” means partial compliance and “NC” means Non-compliance

Chapter 2: Technical Proposal

Bidder shall provide full description of their technical approaches, including

exact thermal and mechanical mounting scheme with satellite structure, test and

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validation plan, etc., to satisfy the CDE Battery technical requirements as stated in

Appendix B of this RFP and to successfully perform the CDE Battery Program

requested in Appendix C of this RFP. Bidder shall identify any additional services

or capabilities that may be beneficial to select the proposed CDE Battery.

Chapter 3: Management Proposal

The management approach to achieve the successful CDE Battery Program shall

be described in this Chapter. At least the followings shall be included in this

Chapter:

(a) Introduction

Bidder shall describe a company structure, management philosophy,

success/failure history, reputation in the global market, etc.

(b) Program Management Experience and Approach

Bidder shall describe Bidder’s experience as a space proven battery

provider including experience of engineering personnel assigned to this

program. And Bidder shall also describe Bidder’s management

approach and indicate how the responsibility for the various elements

will be assigned both to organizations within the Contractor and major

suppliers and subcontractors.

Program organization charts depicting the chain of responsibilities shall

be included. The names and resumes of key management, scientific,

and engineering personnel assigned to this program are to be included

with the percentage of time assignment to the program. In case the

Contractor is not the manufacturer of the CDE Battery, the relationship,

roles and responsibility of each involved organization shall be

described.

(d) Program Schedule

This section shall contain the detailed program schedules. Major

schedules shall also be shown. In any cases, the date of CDE Battery

delivery to KARI shall be done by May 2013. Overall schedule margins

shall be clearly noted.

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Describe in detail proposed methods to measure and control schedule of

the program. Emphasize the method of early warning and correction of

schedule slippage and cost overrun. Discuss the experience which the

Bidder has accumulated using these methods and submit related

experience information.

Identify the technical and management review meetings planned, the

frequency of these meetings, and note the level of company

management in attendance at each meeting. Briefly describe how cost

control methods will not jeopardize performance, reliability, and

schedule requirements.

(e) Back-up Plan

Bidder shall propose a back-up plan in case of schedule delay.

(f) Risk mitigation approach and risk management plan:

Bidder shall describe the risk mitigation approach which is being

implemented by the Bidder. Bidder shall identify key technical or

programmatic risks and provide the risk mitigation plan for those risks.

(g) Subcontracts Management

Describe the tasks or items to be subcontracted or purchased and

proposed suppliers. Also, show how the subcontractors will be

managed (technical, cost, and schedule). List all subcontractors and

suppliers for unit, assembly and higher level equipment, with a brief

business history of these organizations. KARI shall have a right to

reject under-qualified subcontractors.

(h) Technical Management and Product Assurance Plan

Describe the technical management approach and product assurance

plan to be implemented by Bidder to ensure non-defective

workmanship and successful manufacturing, assembly, integration, and

testing of CDE Battery.

(i) Program Resources

Bidder shall discuss the Bidder’s personnel, facility, test equipment,

design and analysis tools, and software resources. Bidder shall also

discuss loading due to other program during CDE Battery Program

period including both new and probable new programs. Bidder shall

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present resumes of key persons to be assigned to CDE Battery Program.

(j) Financial Capability and Evidence

Bidder shall present published financial statements for last three (3)

years which shows the profit, loss, total assets, and debt, etc.

Chapter 4: Statement of Work Proposal

The Statement of Work for the CDE Battery Program is specified in Appendix

C in this RFP. Bidder shall describe the compliance on the Statement of Work in

article by article. Bidder can propose other work scope beneficial for the CDE

Battery Program.

A CDE Battery Program schedule including milestones and deliverables shall

be presented assuming the June 2012 as EDC.

Chapter 5: Warranty and Maintenance Proposal

Bidder shall propose the warranty and maintenance which are specified in Part

IV Warranty and Maintenance and Appendix A Terms and Conditions in this RFP.

Bidder can describe all suggested options.

Chapter 6: Draft Contract Proposal

Bidders shall describe terms and conditions in this chapter observing the Terms

and Conditions of KARI (Appendix A) as if the Bidder awarded the Contract. This

Draft Contract Proposal is required for the purpose of speeding up the Contract

process. However, the Terms and Conditions in this RFP shall prevail and the Draft

Contract Proposal is a reference only and any terms and conditions of the Draft

Contract Proposal which are against KARI's Terms and Conditions shall not be

regarded as the Contract.

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Chapter 7: Price Proposal

Bidder shall propose the price based on the requirements in this RFP. The price

or rate proposed by Bidder shall be firm and fixed, not subject to change for a

price escalation for the entire period of the Contract.

Any currency quoted in the Proposal shall be expressed in U.S. dollar only.

Miscellaneous costs such as insurance, shipping costs, taxes, charges and

duties, etc., shall be included in the Proposal; Bidder shall be required to provide

additional cost and financial data to support its detailed price proposal, as and

when requested by KARI during the validity period of its proposal.

Bidder shall provide a breakdown price table which includes all items as

specified in the Table 3.2 Breakdown Price Table (example), as a minimum.

Table 3.2 Breakdown Price Table (example)

Item

Price

(US Dollar)

Unit

Subtotal

(US Dollar)

FM CDE Battery

1,000

QM CDE Battery

1,000

Item 1

1,000

Item 2

1,000

…

Total

********

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PART IV.

WARRANTY AND MAINTENANCE

Chapter 1: Warranty

The CDE Battery shall be warranted for duration of two (2) years from the date

of KARI's written approval on definitive acceptance on the site against any

operational faults (refer to Articles 7.2 and 20 in Appendix A).

The warranty to be provided by Contractor shall cover the replacement of

faulty parts, the supply of labor required for repair, test, assembly etc., and any

incidental and necessary costs for such services and work.

The Contractor shall submit the written plan for repair within three (3) days

after the reception of the notification of fault. The Contractor shall completely

finish the repair within two (2) weeks after the reception of the notification of fault

(Refer to the Article 20 in Appendix A Terms and Conditions in this RFP).

To meet these requirements, the Contractor shall propose a detailed plan for the

prompt repair in the Proposal. The detailed information (location, number of crews,

resume, phone and FAX numbers, etc.) of the task force team (in Korea and

foreign countries) shall be included in the Proposal.

Chapter 2: Maintenance

2.1

General Rules

All parts requiring reconditioning or maintenance for CDE Battery must be

easily accessible. A CDE Battery maintenance note, i.e., CDE Battery maintenance

guide providing detailed instructions, etc. shall be included in the documentation

by using the friendly explanation with reference to schematic diagrams, drawings

or photographs.

2.2

Maintenance Services

The Contractor has the responsibilities to immediately answer the operational

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and maintenance questions which KARI brings in by FAX or telephone calls until

the system is dismantled by KARI.