TEMA WELCOMES SHRI GOPAL DAS, CMD BSNL & DIRECTORS, EXECUTIVE DIRECTOR, SENIOR OFFICERS BSNL

1. TEMA WELCOMES SHRI GOPAL DAS, CMD BSNL & DIRECTORS, EXECUTIVE DIRECTOR, SENIOR OFFICERS BSNL Event Supported by: Media Partner:

2. AGENDA • Acknowledgement • Discussion on Procurement Policy • Recommendations

3. ACKNOWLEDGEMENT • TEMA compliments BSNL for its continuous support to indigenous Telecom Equipment Manufacturers • TEMA compliments BSNL on its initiatives taken towards Integrity Pact • TEMA salutes BSNL for introduction of World class Technologies like 3G, WiMAX, FTTH, Fixed Mobile Convergence, Mobile Number Portability to our country • TEMA congratulates BSNL on fulfilling its role by being a socially responsible low cost service provider through out • TEMA congratulates BSNL for its initiatives taken towards increasing the Tele Density in rural areas. • TEMA would like to see BSNL as India’s most telecom operator and wishes for BSNL to remain a transparent organization as it is today

4. Suggestions for Procurement Policy • Fast Procurement…take TEMA’s help • Anonymous complaints..handling • Two stage/one stage bidding • Draft of a tender to be shared with TEMA for getting views of respective OEM/SI for their comments at least one month before NIT • Quarterly meetings with TEMA and formation of Expert Group of BSNL & TEMA • Procurement of Optical Fiber • BSNL Empanelment process : This will help BSNL to reduce the cycle time of finalization the process from tender to order. Once in a year process can be reviewed • More emphasis to be brought on indigenous manufacturing clause – this will help BSNL post sales support • Liquidated Damages shall be maximum 12% of the net amount after deduction of duties and taxes only on the delayed portion of the equipment • Delivery Period timelines should be flexible based on the quantum of supplies and the country of origin , specially in case of project nature of business • Project milestones should be linked to PO instead of APO

5. Suggestions for Procurement Policy – Contd. • Automated process for claiming the vendor payments should be introduced and beyond 60 days delay from the submission of complete bills need to be monitored at Circle level and also reviewed at HQ level (Some System need to be in place ) • The fall clause in a tender to be removed as the L-1 Vendor gives the most aggressive pricing through competitive bidding. • Product supply business : TESAC shall be pre- requisite to participate the tender , this will ensure BSNL timely supply

6. Suggestions by TEMA • Acceptance Testing Procedure (ATP) shall be signed off within one month of issuance of Purchase Order- as it takes major time for agreement of final detailed scope • VT process need to be simplified – Major application related test need to conduct and undertaking from vendor for general test schedule as vendor association with the project for minimum 5-6 years including O&M • In case of turnkey projects, site allotment, site readiness and finally site handover should be done on priority basis • BSNL & Vendor should sign the Project PERT on combined basis and benefit of doubt should be given to vendor if BSNL is responsible for delay – Standard practice follows by most of major Teleco’s • Penalties under AMC agreement should be capped to 12% • Minimum 60-70% of the payment should be made at the time of delivery ,as vendor gives 10% PBG or may ask for 20% PBG as bank guarantee – this will help vendor to mobilize the fund for fast project execution

7. Many Thanks!