SATCOL — Communications Satellite Bidding Process Has Begun (Updated Post)

Colombia has begun a US$250 million communications satellite contracting process, according to two reports prepared by enterprising Bogota lawyer Alejandro Delgado of Rodriguez & Cavelier. 

The process will identify and select a contractor for the “design, development, manufacture, delivery, launching and operation of the Colombian Fixed Services or Broadcasting Satellite (FSS or BSS).”   The bidding process is “open to space industry manufacturers or to satellite fixed services operators FSS which prove experience as ‘prime contractor’ for fixed services or broadcasting satellite manufacturing agreements.”

Ministry of Communications has announced in its website today that the following stages of the SATCOL’s bidding process have been postponed:

 – Publication of the answers to the questions, observations and comments to the Draft RFP’s.

 – Publication of the final RFP’s

 – Hearing on risk assignment and distribution.

 – Hearing to clarify the final RFP’s.

 The Ministry said in its statement that it will release the dates of such stages on September 18, 2009.

The following are two detailed memoranda written by attorney Delgado.

Rodriguez & Cavelier Memo No. 1

Background

After a bidding process which Satel Counsel International, Sti Ltda and Incorbank S.A. won to advise the Ministry of Technologies, Information and Communications and preparing the bidding terms for the “Design, development, manufacture, delivery, launching and operation of the Colombian social communications Satellite System (CSCSS) during its risk period”, the drafts of these bidding terms have been published in the official Contracting website since the 26th of August in order to be commented (they are available for any comments or suggestions until 3:00 p.m. of the 9th of September).

• The main points of this document are:

• The Public bidding process main objective is the selection of the Contractor for the design, development, manufacture, delivery, launching and operation of the Colombian Fixed Services or Broadcasting Satellite (FSS or BSS) during its risk period and in accordance to these bidding terms.

• The bidding process is open to space industry manufacturers or to satellite fixed services operators FSS which prove experience as “prime contractor” for fixed services or broadcasting satellite manufacturing agreements and locating satellites into Geostationary Orbit GEO. Prime Contractor means the main Contractor who has under its direction and responsibility the execution of an agreement in which services and activities of subcontracted third parties will be integrated. The required elements of a prime contractor are complied with because at least, a satellite operator, a satellite manufacturer and a satellite launcher will be required, in which case either the satellite operator or the satellite manufacturer would act as prime contractor and the others most surely as contractors, unless they choose to participate as a Consortium or as a Temporal Joint Venture. Prime contractor means that the contract with its client has been in a ready to use modality for the delivery of the satellite in orbit (In Orbit Delivery, IOD) this modality includes its direct responsibility regarding:

1. Manufacturing the satellite and its delivery in ground (In Ground Delivery, IGD).

2. Launching, delivery in orbit (IOD) and operation during the risk period.

3. Insurance that covers launching campaign, enlistment, launching and first year of operation in orbit.

4. Ground Control Stations (TTyC, control mission, control payload).

5. Training and Technology Transference.

6. Access to the minimum Orbit Spectrum Resource necessary.

MAXIMUM BUDGET

The official budget of the Information Technologies and Communications Fund for this Project corresponds to USD$249.041.095,89, budget approved by CONPES no. 3579 of the 25 of March of 2009 .

• The selection mode, through which the contractor selection is going to be performed, corresponds to Public Bidding.

• Considering the essence, nature and characteristics of the contract to be executed with the Information Technologies and Communications Fund, its form will be “ready to use” or “turnkey contract”) according to the doctrine definitions.

• QUALIFICATION REQUIREMENTS TO PARTICIPATE IN THE SELECTION PROCESS

• Legal conditions. In the current process the participation of the following is allowed:

a. National and foreign Corporations which had filed their individual proposals and which their corporate purpose includes: (i) space systems production and/or (ii) artificial satellite operation for fix or broadcasting services.

b. National and foreign corporations which file proposals and are constituted as consortiums or as Temporary Union, and which the corporate purpose of at least one of the members includes (i) space systems production and/or (ii) artificial satellite operation for fix or broadcasting services. The others members of the consortium or the Temporary Union should have within their corporate purpose some of the next activities: manufacturing of space qualified components, satellite integration and assembly, tests and trials of space systems and/or components, launching of satellite systems, securing of space missions, broadband services assistance and production of VSAT networks.

When the proposal is filed as a consortium or a Temporary Union the member which certified the experience as a manufacturer or as an operator must have a participation of at least 66% both in the proposal and its execution.

The foreign corporations must prove to have a representative who is domiciled in Colombia and is duly authorized to represent them during the Public Bidding and specifically to file the Proposal, give participation and compromise to their represented at all moments of the Public Bidding proceeding, sign the request documents and declarations and also sign the Agreement. If they are adjudicated, they are obligated to constitute a branch office or have a representative who is domiciled in Colombia .

No corporation can participate in more than one proposal either as an Individual Bidder or as a member of a Consortium or a Temporary Union. Notwithstanding the aforementioned, in case an Individual Bidder, a Consortium or a Temporal Joint Venture files in their Offer, subcontractor proposals for any activity of the Agreement, those subcontractors can participate in other Offers which arise in this Public Bidding proceeding.

If your company is interested in the aforementioned bidding process, please contact Dr. Alejandro Delgado Moreno.

 Rodriguez & Cavelier Memo No. 2

 

COLOMBIA 

THE COLOMBIAN SATELLITE PROJECT SATCOL

Background:

After being invited to participate in the bidding process to advise the Ministry of Technologies, Information and Communications, and as a result of that process being declared deserted, ACAC started a new process (invitation 033-2009) which Satel Counsel International, Sti Ltda e Incorbank S.A. won.

These companies were in charge of preparing the bidding terms for the “Design, development, manufacture, delivery, launching and operation of the Colombian social communications Satellite System (CSCSS) during its risk period”.

The drafts of these bidding terms have been published in the official Contracting website since the 26^th of August in order to be commented (they are available for any comments or suggestions until 3:00 p.m. of the 9^th of September).

The main points of this document are:

• The Public bidding process main objective is the selection of the Contractor for the design, development, manufacture, delivery, launching and operation of the Colombian Fixed Services or Broadcasting Satellite (FSS or BSS) during its risk period and in accordance to these bidding terms.

 

• The bidding process is open to space industry manufacturers or to satellite fixed services operators FSS which prove experience as “prime contractor” for fixed services or broadcasting satellite manufacturing agreements and locating satellites into Geostationary Orbit GEO. Prime Contractor means the main Contractor who has under its direction and responsibility the execution of an agreement in which services and activities of subcontracted third parties will be integrated. The required elements of a prime contractor are complied with because at least, a satellite operator, a satellite manufacturer and a satellite launcher will be required, in which case either the satellite operator or the satellite manufacturer would act as prime contractor and the others most surely as contractors, unless they choose to participate as a Consortium or as a Temporal Joint Venture. Prime contractor means that the contract with its client has been in a ready to use modality for the delivery of the satellite in orbit (In Orbit Delivery, IOD) this modality includes its direct responsibility regarding:

 

1. Manufacturing the satellite and its delivery in ground (In Ground Delivery, IGD).
2. Launching, delivery in orbit (IOD) and operation during the risk period.
3. Insurance that covers launching campaign, enlistment, launching and first year of operation in orbit.
4. Ground Control Stations (TTyC, control mission, control payload).
5. Training and Technology Transference.
6. Access to the minimum Orbit Spectrum Resource necessary.

 

MAXIMUM BUDGET

The official budget of the Information Technologies and Communications Fund for this Project corresponds to the following annual values, within the budget approved by CONPES no. 3579 of the 25 of March of 2009 and it counts with the Superior Fiscal Policy Council (FPSC) (CONFIS) tax approval by budgetary period:

The Values include all correspondent taxes, contributions and rates (in million pesos).

		Exchange rate: 2044
Year	Colombian pesos	US Dolars
2009	156.263.000.000,00	76.449.608,61
2010	130.562.000.000,00	63.875.733,86
2011	123.463.000.000,00	60.402.641,88
2012	98.752.000.000,00	48.313.111,55
TOTAL	509.040.000.000,00	249.041.095,89

           

• The selection modality, through which the contractor selection is going to be performed, corresponds to Public Bidding.

 

• Considering the essence, nature and characteristics of the contract to be executed with the Information Technologies and Communications Fund, its form will be “ready to use” or “turnkey contract” (in Anglo-Saxon law) according to the doctrine definitions.

 

 

DURATION AND DEADLINES OF THE PUBLIC BIDDING PROCESS

 

The duration and deadlines of this contracting process are established as follows:

 

 

Bidding procedure	Date	Place
Communication to the Chamber of Commerce	04-08-2009
Publication of the first draft of the Terms of Reference, the previous studies and the technical and financial annexes.	26- 08-2009	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
Publication of a press release.	27-08-2009	Nationwide newspaper
Term to file questions, observations and comments to the draft of the Terms of Reference, the previous studies and the technical and financial annexes.	Until  09-09-2009 at15:00  (03:00 p.m.)	Point of Attention to the citizen and Operador– PACO, vía fax at number3442373 and/or e – maillicitación-satcol@mintic.gov.cocopy to: contrataciones.compartel@mintic.gov.co
Answer to the questions, observations and comments made to the draft of the Terms of Reference, the previous studies and the technical and financial annexes.	Until 10-09-2009	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
Selection procedure opening: Publication of final Terms of Reference -Resolution whereby the public bid is officially opened.	10 -09-2009	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
Terms of Reference clarification hearing and of distribution and assignment of Risks.	14-09-2009 at 15:00 (03:00 p.m.)	Offices of the Compartel program, located in the Eastern flank of the fifth floor of the Murillo Toro Building, Cra 7ª between streets 12 and 13 of the city of Bogotá D.C.
Reception of observations, questions and comments to the Terms of Condition	From 10-09-09 to l18-09-09 at12:00 horas (12:00 m)	Point of Attention to the citizen and Operador– PACO, vía fax at number3442373 and/or e – maillicitación-satcol@mintic.gov.cocopy to: contrataciones.compartel@mintic.gov.co
Publication of the answers to the observations, questions and commentaries to the Terms of Condition	Until 23-09-2009	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
Publication of addendums	The working day previous to the Date of Closing, except for the established in the decree 2025 of 2009 article 2 paragraph 1.	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
CLOSING DATE AND RECEPTION OFOFFERS	1-10-2009 at 15:00  (03:00 p.m.)	Offices of the Compartel program, located in the Eastern flank of the fifth floor of the Murillo Toro Building, Cra 7ª between streets 12 and 13 of the city of Bogotá D.C.
Request to the bidders for explanations of the offers filed.	08 -.10-2009	They are published  in  http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co and/or submitted by e-mail or fac to the adrresses registered by the bidders.
Reception of the answers to the requested explanations.	16-10-2009 at  15:00 (03:00 p.m.)	Point of Attention to the citizen and Operador– PACO, vía fax at number3442373 and/or e – maillicitación-satcol@mintic.gov.cocopy to: contrataciones.compartel@mintic.gov.co
Publication of the Preliminary Evaluation Brief	26 -10-2009	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
Reception of comments, and observations to the Preliminary Evaluation Brief.	Until 03-11-2009at 15:00 (03:00pm)	Point of Attention to the citizen and Operador– PACO, vía fax at number3442373 and/or e – maillicitación-satcol@mintic.gov.cocopy to: contrataciones.compartel@mintic.gov.co
Publication of the document of answers and comments to the Preliminary Evaluation Brief and publication of the Final Evaluation Brief.	Until 09-11-2009	http://www.mintic.gov.cowww.compartel.gov.cowww.contratos.gov.co
Adjudicatory Public hearing.	11-11-2009 at 10:00 a.m.	Offices of the Compartel program, located in the Eastern flank of the fifth floor of the Murillo Toro Building, Cra 7ª between streets 12 and 13 of the city of Bogotá D.C.
Execution of contract.	Until 19-11-2009.	Offices of the Compartel program, located in the Eastern flank of the fifth floor of the Murillo Toro Building, Cra 7ª between streets 12 and 13 of the city of Bogotá D.C.
Contract legalization and signature of theCommencement minutes.	Until 26-11-2009	Offices of the Compartel program, located in the Eastern flank of the fifth floor of the Murillo Toro Building, Cra 7ª between streets 12 and 13 of the city of Bogotá D.C.

 

 

 

• QUALIFICATION REQUIREMENTS TO PARTICIPATE  IN THE SELECTION PROCESS

 

• Legal conditions. In the current process the participation of the following is allowed:

 

•  
  1.  
     1. National and foreign Corporations which had filed their individual proposals and which their corporate purpose includes: (i) space systems production and/or (ii) artificial satellite operation for fix or broadcasting services.

 

•  
  1.  
     1. National and foreign corporations which file proposals and are constituted as consortiums or as Temporary Union, and which the corporate purpose of at least one of the members includes (i) space systems production and/or (ii) artificial satellite operation for fix or broadcasting services. The others members of the consortium or the Temporary Union should have within their corporate purpose some of the next activities: manufacturing of space qualified components, satellite integration and assembly, tests and trials of space systems and/or components, launching of satellite systems, securing of space missions, broadband services assistance and production of VSAT networks. 

 

When the proposal is filed as a consortium or a Temporary Union the member which certified the experience as a manufacturer or as an operator must have a participation of at least 66% both in the proposal and its execution.

The foreign corporations must prove to have a representative who is domiciled in Colombia and is duly authorized to represent them during the Public Bidding and specifically to file the Proposal, give participation and compromise to their represented at all moments of the Public Bidding proceeding, sign the request documents and declarations and also sign the Agreement. If they are adjudicated, they are obligated to constitute a branch office or have a representative who is domiciled in Colombia[1].

No corporation can participate in more than one proposal either as an Individual Bidder or as a member of a Consortium or a Temporary Union. Notwithstanding the aforementioned, in case an Individual Bidder, a Consortium or a Temporal Joint Venture files in their Offer, subcontractor proposals for any activity of the Agreement, those subcontractors can participate in other Offers which arise in this Public Bidding proceeding.

• Financial Conditions

 

The Bidder and each of the Consortium and Temporally Union’s members must file approved financial statements corresponding to the last fiscal period in accordance with the law of the respective country.

1.9.2.2. Patrimonial requirements

The required patrimonial capacity percentage for the current process is: equal or higher than one hundred per cent (100%) of the total value of the Project’s Official Budget, which is calculated in accordance with this numeral. 

The required patrimonial capacity shall be calculated with the following formula:

CPR=VTP x 100%

CPR= the required patrimonial capacity must be accredited in each case.

VTP= total value of the Official Budget

100%= established percentage in this numeral of the Bidding Terms.

When the Bidder is a Consortium or a Temporal Joint Venture, it must have a patrimonial capacity which is equal or higher than the result of multiplying the required patrimonial capacity to the participation percentage in the Consortium or the Temporal Joint Venture.

1.9.2.3 Absence of agreement of payments to creditors

 

Neither the Bidder nor the members of the Consortium or the Temporal Joint Venture can be in a restructuration’s process, bankruptcy proceeding, insolvency proceeding, financial insolvency or any other similar event in their respective legislation.

1.3.2.4       Credit Limit Approval

 

The Bidder must present the proposal with a certification issued by a National bank entity which is controlled by the Finance Superintendence or by a foreign bank which is certified by a similar entity to the Finance Superintendence of the country of the foreign bank.  This certificate must establish the existence of a credit limit approval.  In the case of the foreign bank, the certifications must be apostilled.  MINIMUM REQUIRED CREDIT LIMIT: 5% of the value of the Official Budget.

 

 

• Technical Conditions

 

1.9.3.1 Operation Fleet

 

If the Bidder is a satellite systems operator its current fleet at must have least five (5) satellites in the Geostationary Orbit for fix services or broadcasting and  operating in the control position regime (SKW). Satellites operating in inclined GEO are excluded.

 

 

1.9.3.2. Satellite Manufacturing

 

If the Offering Party is a Manufacturer of space technologies, it shall have manufactured at least ten (10) fixed services or broadcasting satellites which are currently operating in the GEO under position control regime (SKW).

1.9.4. Regulatory Conditions: Orbit Spectrum Resource (ROE)

 

Regarding the ROE, the Bidder must present a certification of a Member State of the Communications International Union (UIT) in which states:

(a)     That said administration has the priority for the exploitation of that ROE accordingly with the UIT`s Radio-communications Regulation, or that it has coordination agreements with the administrations that precede it in priority.

(b)     The satellital position of this ROE must allow an elevation angle of the earth stations of 30º in Ku band and/or higher than 40º Ka band.

(c)     Express authorization for the Bidder for the exploitation of the respective ROE for this Project in case it is granted to him for a twenty (20) years period, starting on the date of launch that allows two consecutive cycles of  usefulness term.

 

CHRONOGRAM AND GOALS

The Bidder must present in its Proposal an activities` chronogram which includes the deadlines in Chart 2, seeking to guarantee an appropriate execution of the Agreement.

 

 

Number	Fase	Stages	Beginning	Maximum time since the beginning Deadline from the beginning
I.	Design of the satellite	Preliminary review of the Design (PDR) Critical review of the Design (CDR)	FEC    PDR	5 months    7 months
II.	Assembling, integration and testing	Start of assembling, integration and testing. Post test review, In Ground Delivery (IGD) andPre-loading.	CDR    End of assembling, integration and testing	8 months    7 months
III.	Loading,  launch andPreliminary acceptance in Orbit.	Preliminary acceptance in Orbit.	In Ground Delivery (IGD)	6 months
IV.	Preliminary acceptance of the ground segment.	Facilities acceptance   Preliminary acceptance	FEC    Loading and launch	28 months    5 months
V.	Final delivery of the space segment.	Final acceptance of the space segment.	In orbit Preliminary acceptance	12 months
VI.	Final delivery of the ground segment.	Final acceptance of the ground segment.	Preliminary acceptance in Orbit.	12 months
	FEC: Effective date of the Contract

 

 

 

Guarantee of seriousness of the proposal

 

The Proponent must present a Guarantee of Seriousness of the Proposal which will be constituted in favour of the Contracting Entity (In the guarantee, the beneficiary must literally appear as “Information and Communication Technologies Fund”) for an amount equivalent to two point five percent (2.5%) of the official budget for the execution of the Project.

The Guarantee must be enforceable for ninety (90) calendar days, starting on the date in which the Bidding Procedure closes.  In case the Proposal is presented by a Consortium or a Temporal Joint Venture, the Guarantee must be granted by all of the members.

Bank guarantees and insurance policies issued by banks or insurance companies which are legally established in Colombia will be accepted.  The terms must be those of a guarantee issued for a public entity.  The Bidder is required to extend the enforceability of the Guarantee of Seriousness of the Proposal when the Contractual Entity solicits it.

The Guarantee for the Seriousness of the Proposal must cover:

(i) The non signing of the agreement by the selected Bidder without just cause,

(ii) The non extension of the enforceability of the guarantee of the seriousness of the Offer, when the foreseen term in the documents for the adjudication of the agreement is prorogued or when the foreseen term for the execution of the agreement is prorogued, as long as said prorogues do not exceed a 3 month term,

(iii) The absence by the selected Bidder, of granting the performance guarantee demanded by the Fund to cover breach of contract’s obligations,

(iv)The withdrawal of the Offer after the term for Proposal presentations has expired,

(v) The absence of payment of the publication rights in the Contractors Single Paper (Diario Único de Contratación), which are foreseen as requisites for the legalization of the agreement,

(vi) When the withdrawal of the proposal is requested after the closing of the bidding proceedings, except in case of overcoming inability or incompatibility,

(vii) When after the granting of the contract, the legalization requisites of said adjudication are not complied within the established period,

(viii) If by the Proposal’s acceptance date, the documents issued abroad have not been filed at the Contractual Entity with the necessary consular proceedings for their validity in Colombia.

The policy must describe expressly and in detail all the liabilities it covers.  The policy shall be delivered with the receipt of payment of the premium. Both the policy and the receipt must be the originals.

Minimum useful term of the mission

The useful term of the mission offered by the Bidder must be at least one hundred and eighty (180) months, starting from the preliminary delivery in orbit and for position (SKW) controlled regime operation for the one hundred percent (100%) of the design power.

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[1] This paragraph is not clear. It should be subject to clarification from the Ministry of Communications.