State of Israel
REQUEST FOR PROPOSALS ( RFP )
Monitoring Railway Projects and Activities
Attached please find a request for proposals by the Government of the State of Israel regarding services in connection with monitoring railway projects and activities in Israel.
Please review the attached and if you are interested to apply, please submit your proposal as specified therein.
Monitoring Railway Projects and Activities - Request for Proposals
On behalf of the Government of the State of Israel (hereinafter - the “GOI”) I hereby invite you
to submit a proposal for the provision of professional services to the GOI and assistance to the GOI in monitoring and supervising the Projects and the Activities (as defined herein) to be executed according to the agreement between the GOI and Israel Railways Ltd company
th( “IRL”) signed on August 11 2008 (hereinafter – the services or consultant services).
The Accountant General in the Ministry of Finance has appointed an inter-office Tender Committee (the "Tender Committee") to manage the procedure for the selection of an engineering and consulting company (EMC). The Tender Committee consists of representatives from the Ministry of Finance and the Ministry of Transport and Road Safety. General Background
1. The GOI has executed the attached development agreement with Israel Railways Ltd (IRL) (the "IRL Agreement"). The IRL Agreement sets forth the terms and conditions for implementing the development plan to be performed by the IRL over a four year period (the “IRL Plan”). The
IRL Plan contemplates the implementation of certain projects which have an estimated aggregate cost of USD 7.4 billion (based on USD/NIS exchange rate = 4.0).
The main provisions of the IRL Plan include the following :
2. IRL is a governmental company, wholly owned by the State of Israel, whose purposes include the establishment, development, management, maintenance and operation of the railroad infrastructure system throughout Israel for transportation of passengers and cargo.
3. The IRL Plan, the implementation of which commenced on January 1 2003 and was renewed
thston August 11 2008 , will end on December 31 2012, has an estimated total cost of USD 7.4
billion (based on USD/NIS exchange rate = 4.0) of which its updated balance as at August 2008 is USD 5 billion (based on USD/NIS exchange rate = 4.0).
The plan includes, inter alia, the following components:
3.1. Railroad infrastructure development - the railroad infrastructure IRL Plan, including railway
stations, includes the following elements:
3.1.1. 13 (Thirteen) main projects for the construction of new railway lines and the
upgrading and expansion of existing ones.
3.1.2. An electrification project, the purpose of which is to partially replace the use of
diesel fuel with electricity for the operation of the trains.
3.1.3. A cargo infrastructure upgrade project, the purpose of which is to increase the
volume of cargo transportation.
3.2. Acquisition of rolling stock - this plan encompasses the acquisition of passenger cars and
engines. The purpose of this plan is to address the anticipated growth in demand for
passenger and cargo transportation. The estimated total cost of such acquisitions, for the
remaining period of the IRL Plan as at August 2008, is US$ 570 million (based on USD/NIS
exchange rate = 4.0).
3.3. Maintenance - the maintenance plan includes: (1) improvements to the control system; (2)
communications systems upgrade; (3) infrastructure rehabilitation; (4) train station upgrades;
(5) ongoing security and safety measures; and (6) the integration of rail/road solutions. The
maintenance plan has an estimated cost of US$83 million for the remaining period of the
IRL Plan as at August 2008.
3.4. Future projects design.
The IRL plan also provides for the creation of a stock of design programs for future projects.
This stock has an estimated cost of USD 111 million.
4. As stated in the IRL Agreement the GOI retains supervisory authority of the IRL and its operation and, inter alia, of all aspects of the IRL Plan both in terms of finance and technical performance including design, estimations, contracts, payments, use of money, management and actual performance of any and each project or part of a project and of the IRL plan in its entirety. The GOI also retains supervisory authority of the IRL current operations.
5. The EMC that will be selected as the winning bidder will provide consulting services to the GOI and assist the GOI in exercising its supervisory authority in connection with the Projects. The primary purposes of the Services to be performed by the EMC shall be:
5.1. Facilitating the efficient performance of the Projects, and monitoring of the planning and
performance of the Projects, as appropriate. In addition, the Services shall facilitate
implementation of the Projects in accordance with the budget and the time schedules set
forth in the development agreement , with a particular emphasis on enabling real time
adjustments in such implementation;
5.2. Ensuring that the Projects are performed in accordance with customary professional
standards, including accounting, financial and engineering standards;
5.3. Review and make recommendations for all Tenders:
• 100 million NIS or more.
• Train Stations
• International Tenders
The tender review should include the examination, review and assessment of planning and
design phases to include statutory planning, preliminary engineering and detailed engineering.
• Confirm technical systems are proven with a track record for constructability, reliability,
availability and maintainability.
• Confirm that systems interface and reasonable cost to enhance
• Ensure that issues are resolved at appropriate level of design
• Assess non-IRL critical path issues such as archaeology, utility, relocation, site access,
traffic diversion, etc.
• Technical provisions are consistent with tender approach.
5.4. providing a basis for the GOI to assess and consider the ongoing financing aspects of the
IRL Project ;
5.5. increasing the GOI's abilities in monitoring and supervising the planning and execution of
the IRL Project within the time frame and budget set forth in the IRL Agreement and in
accordance, inter alia, with generally accepted engineering standards;
5.6. Ensuring the efficient utilization of the financial resources provided by the GOI for the IRL
5.7. Providing second opinion on engineering design of new proposed projects
5.8. Providing available professional human resources in the field of:
Engineering design with an emphasis on bridges, tunnels design
Railway Operation and traffic management
IT and ERP
Customer and passenger service
Execution of projects in the PPP method
The EMC will provide the GOI with monthly detailed reports about the given services for the
past month. In addition quarterly and annual reports will be submitted 14 days after the end
of each period. Quarterly reports will summarize monthly reports. Annual reports will
include in addition also key and strategic issues of the performance of the IRL. All reports
will be submitted in English with a translation to Hebrew.
The GOI anticipates to hold monthly meetings with the EMC in order to discuss issues
relating to the EMC's performing of services on a going basis.
6. The GOI anticipates that the EMC will be a partnership between an international company and a local entity or that the international company will hire local staff for the execution of these services. The local entity/staff is expected to perform certain parts of the Services which would require familiarity with the local economy and statutory and regulatory framework, for example, Israeli planning, engineering and accounting entities. The international company shall have to prove relevant experience of monitoring railway projects of accumulated size of no less than USD billion in the last 5 years. The members of the international company dealing with engineering issues have to have academic civil engineering education with expertise in railways, with a 10 year experience in railway issues each. The local entity members shall have to prove experience in railway projects execution (design / supervision / implementation) of 5 years each. The EMC has to indicate professionals for special issues including finance, economics, IT, traffic control and PPP project execution with 10 years of relevant experience each .
The Bidder shall present to the Tender Committee credentials about the international company and its staff and the local entity and its staff.
During the contract period the project manager from the EMC will have to commit itself to presence in Israel during at least 14 days per month. However, the EMC will be allowed to submit a request to the GOI for approving a temporary substitute, being in Israel and being representing the project manager.
In any case of replacing a team member, the leaving member will have to stay in office for ensuring a training period of at least 2 months for the new member.
For the avoidance of doubt, in the event that an EMC is assisted by, or subcontracts with, any other person or entity with respect to the performance of any aspect of the Services, the EMC shall remain fully liable and responsible to the GOI for and with respect to such performance. For the avoidance of doubt, the Tender Committee shall be entitled to make amendments to the nature of the above-referred services to be performed. No Bidder shall have, at any time, any claim, objection or demand against the Tender Committee with respect to such changes.
.Duration of the Contract
7. The contractual period is for three (3) years from the date of the signature of those
authorized to sign the contract on behalf of the GOI (hereinafter – the first contractual period).
8. The GOI has the sole and exclusive option to extend the contract for an additional period
up to 24 (twenty four) months according to the extent of the need, upon advanced written
notice, under identical terms and conditions, and subject to budgetary approval (hereinafter –
the additional contractual period).
9. The GOI may, upon advance written notice, end the contract within the contractual period,
for any reason and at its sole discretion, without any obligation to provide reasons for such a
Conflict of interest/Confidentiality/Ownership
10. The bidder who will be selected to provide the services (hereinafter – the winning
bidder) shall declare that it does not have and that it will not have, throughout the contractual
period between the parties, and during the 24 months from the end of the contractual period, a
conflict of interest of any kind whatsoever. Without derogating from the generality of the
aforesaid, the winning bidder shall not represent and shall not act, in the course of the
contractual period, on behalf of any entity to whom the services are likely to be relevant. 11. The winning bidder shall be required to sign a commitment to keep confidentiality
without reservation and to agree that all of the meetings in which it takes part and all of the
findings and data regarding the service that shall be provided by it, including its work product,
shall be kept confidential throughout the contractual period and afterwards, unless it received
the GOI’s written approval in advance for the transmission of such findings or data.
12. All documents and works which shall be prepared by the winning bidder in the
framework of its advisory services shall be the exclusive property of the GOI and neither the
winning bidder nor anyone acting on its behalf shall have any claim or action regarding them.
In addition, neither the winning bidder nor anyone acting on its behalf shall make any use of
the information that is not public property that shall come to its attention in the framework of
the advisory services, unless it received prior written approval from the GOI to do so.
13. The winning bidder shall not make use of the information that it became aware of in
the course of the contractual period, except for the purpose of carrying out its duties. 14. The winning bidder promises that it will not present the results of such work during
the contractual period and afterwards, including every document that the winning bidder shall
prepared in the framework of providing the advisory services, to any entity other than a
representative of the GOI, unless it received written advance approval from the GOI to do so.
Compensation for the services provided
15. Each bidders shall submit in its tender a proposal for the monthly fixed price it requests
for the execution of services ( " The Price Proposal " ) , either in Israeli shekels or U.S.
dollars or Euro ( a mix of currencies is not allowed ). The Price Proposal shall not include VAT
according to law (the amount of VAT shall be added at the time of payment). The Price
Proposal shall include all costs and expenses incurred by the bidder for the execution of the
16. The Price Proposal shall be indexed to the Israeli CPI, to the US CPI or to the HICP
respectively. The base index will be the last known index at the date of submission of the
proposals, all as detailed in the Agreement.
Information and documents to be submitted in the proposal:
17. Detailed description of proposed methodology for executing the Services. : The
methodology suggested by you should include, inter alia, the following elements:
17.1. Examination and inspection of the planning and design stages of the IRL Project which will
include statutory planning, preliminary engineering planning, and detailed engineering
17.2. Examination of status of permits and authorizations required for each Project, as well as
required cooperation agreements with third parties.
17.3. Examination of risk matrix elaborated for each Project prior to its execution.
17.4. Second opinion on projects on the design stage not included in the IRL plan.
17.5. Monitoring IRL design, construction and maintenance standards.
17.6. Examination and inspection of the transportation and transit aspects of the IRL Plan 17.7. Review of the estimated costs of the IRL Projects detailed in the IRL Plan. 17.8. Ongoing monitoring and supervision of the implementation of the IRL Plan in accordance with
the IRL Agreement including the estimated costs and market prices, and the examination of
tender processes, preparatory works and related commitments.
17.9. Examination and inspection of financing, standards and costs of the purchase of the rolling
stock and the electrification projects and the technological aspects thereof, smart cards and the
fast line to Jerusalem (A1) .
17.10. Examination and inspection of the quality assurance procedures undertaken by IRL. 17.11. Approval of the completion of each project in the IRL Plan.
17.12. Approval for transfers of funding for the IRL Project from the GOI as detailed in Appendix D
to the IRL Agreement and monitoring the use of such funding by the IRL.
17.13. Examination, inspection and supervision of IRL operation.
17.14. Consultation, upon demand about freight transport.
17.15. Consultation upon demand with respect to any issue related to the IRL Project, including, inter
alia, PPP (Public Private Partnership) railway projects and passenger service, preparation of
technical requirements by external advisers
17.16. Examination of special projects such as electrification
17.17. Reporting procedure to the GOI: please describe the format of monthly, quarterly and yearly
reports per project examined, to be submitted to the GOI for each project monitored during the
course of providing the Services.
18. The proposed Team members: Each bidder is requested to include a complete list of the members of the team who will provide the suggested services (the "Team Personnel"). The list will include detail of the names, ages, education and professional experience of the team personnel, and a CV for each of the Team Personnel. In addition the bidder will have to indicate who will act as Israeli project manager of the EMC in Israel. Please note that the project manager will have to prove at least 15 years of experience in planning aspects of Israeli civil engineering. Furthermore the bidder will have to indicate the field of responsibility of each team member in providing the services (task allocation).
It is hereby clarified that the team proposed by the bidder and it alone, shall perform the services, unless prior written authorization is received from the GOI.
19. Information about the bidder :
19.1. Basic information about the Bidder and its equity holders, (cap table), including charter or
19.2. A description of the bidder, the areas of its activity and relevant experience, with specific
and detailed attention to the description of the services and its requirements. 19.3. A concise summary of the organizational structure, activities and expertise of the bidder.
The bidder shall attach, according to the certifications customary in its country, corporate
registration certificate, signatory rights certificate, approved by a notary. 19.4. Detailed description of the Bidder’s worldwide affiliates
19.5. A detailed list and description of similar projects performed previously by the Bidder, in
Israel and out of Israel, including in countries in which the official language is not English,
and addressing the total cost of such projects (in US$), the scope and nature of such projects
and the Bidder’s exact responsibilities in each project. The Bidder shall describe its
qualifications and experience in similar projects, the number, size and scope of projects in
which it has provided similar services in the past 7 years. It shall list and describe all works
of at least 3 billion U.S. dollars performed by itself in Israel and abroad in the past 7 years
19.6. Written recommendations from clients that have received similar services from the Bidder
in the past, and/or names, contact details and title descriptions of such clients that may be
approached by the Tender Committee.
19.7. Description of any potential conflict of interests with the interests of the GOI, or IRL,
including with respect to works currently being performed and works performed in the past,
by the Bidder and/or by any of its affiliates or local professionals in Israel.
20. Signed Agreement: The attached Agreement, including the confidentiality and absence of
conflict of interest attachment will have to be signed and submitted with the proposal.