Request for Tender

Disposal of 1992 Cook Island Bank Notes - OOC

Reference No. ___SA151602_____________

Date of Release:__November 2015_____

Ministry of Finance and Economic Management

Version No. 1

Table of Contents

1

1.Glossary and Definitions3

2.Introduction4

Summary of Requirement4

Submission of Tender/Offer4

Tender/Offer Closing Time4

Contact Officer4

3.Selection Process6

Notification of Acceptance6

Probity6

Statement of Requirement(s)5

Conditions of Tendering6

4.Appendices7

APPENDIX A7

Form of Tender7

APPENDIX B9

Evaluation Criteria9

APPENDIX C12

Agreement for sale of bank notes12

Glossary and Definitions

Term

Explanation

RFT

Request for Tender

Tender Management Team

The team that is responsible for the management of this Tender, including the evaluation and administrative functions

Evaluation Committee

The group of people within the Tender Management Team that will evaluate this Tender

Manual

The Cook Islands Government Financial Policies and Procedures manual. http://www.mfem.gov.ck/policies-and-templates incl the Procurement manual at www.procurement.gov.ck

Ministry of Finance and Economic ManagementRequest for Tender No. _SA151602____

DRAFT

Page 5 of 13

Introduction Summary of Requirement

Through this RFT, the Ministry of Finance and Economic Management (MFEM) wishes to dispose of its inventory of bank notes issued in 1992 and now out of circulation. These notes are no longer legal tender but have value to collectors of bank notes worldwide. The parcel included in this tender is:

Cook Islands 1992 issue $50.00 x 6,000

Cook Islands 1992 issue $20.00 x 6,000

Cook Islands 1992 issue $10.00 x 6,000

Submission of Tender/Offer

Tenders should be submitted by email in either pdf or MS word format to tenders@cookislands.gov.ck with the subject line Cook Island Bank Notes OOC SA151602 as specified in the RFT. Tenders must be received to the inbox of tenders@cookislands.gov.ck in the form specified in Appendix A by the due date. Failure to do so will result in the tender being disqualified. Comment by Russell Hynd: We should input the exact details here so that they can be cut and paste into the tender email

All tenders should be submitted exclusive of any and all VAT, GST or other applicable taxes and levies. Cost and insurance for removal of the notes is at purchaser expense. Cook Islands VAT may be payable depending on whether the purchaser resides in the Cook Islands of offshore.

The receipt time on the inbox will be used as confirmation of receipt for the purposes of ensuring the tender submitted is within time limit.

No hard copy tenders will be accepted for this tender.

Tender/Offer Closing Time

Tenders close at 4.00 pm on Friday 21 November 2015.

Reserve Price

This tender is subject to a reserve price. If not met the tender evaluation panel reserves the right to negotiate with the highest or any other bidder, or any other potential purchaser in order to achieve the best price possible.

Contact Officer

Negotiations will not be permitted between the Tender Team and any prospective tenderers during the tender advertising period. However, prospective tenderers may seek clarification of the tender documents prior to submitting their tenders. Any enquiries in relation to this tender should be directed to the Contact Officer identified below. Tenderers should note that to ensure no disadvantage to any tenderers, responses to questions pertaining to this RFT will be shared with all potential tenderers through the Cook Islands Government Web Site www.procurement.gov.ck in the form of a Frequently Asked Questions document for the tender that will be updated as required through the tender period.

Any enquiries in relation to this tender should be directed to the Contact Officer at the address given below.

Name of Person: Terry PiriTitle:Funds Manager, MFEME-mail:terry.piri@cookislands.gov.ck

Statement of Requirement(s)

The Ministry of Finance and Economic Management (MFEM) wishes to dispose of its inventory of bank notes issued in 1992 and now out of circulation. These notes are no longer legal tender but have value to collectors of bank notes worldwide. The parcel included in this tender is:

Cook Islands 1992 issue $50.00 x 6,000

Cook Islands 1992 issue $20.00 x 6,000

Cook Islands 1992 issue $10.00 x 6,000

The notes are all un-used and 5,000 out of each 6,000 remain in their original sealed packages of 10 x 100 notes = 1,000 notes (which does not in most cases fully seal the notes). The remaining 1,000 of each denomination are out of the plastic wrap but remain banded. Some staining is evident due to their storage for the last 24 years. Pictures are attached herein at Appendix C for illustration purposes.

Notes are sold on an as is where is basis for removal from the Cook Islands Ministry of Finance and Economic Management premises in Avarua, Cook Islands. All costs associated with removal or transport are at purchasers account in addition to the tender price.

The Ministry of Finance and Economic Management will provide documentation verifying authenticity of the notes in total only eg. We will not provide individual statements of authenticity for each note, package, or denomination; and will provide any further documentation required to allow their transport from the Cook Islands. Any extraordinary costs associated with this will be at the purchasers expense.

The Cook Islands Government will accept no liability for any damage or loss associated with the use or removal of the items sold in this tender by any party, for any reason.

Physical count of notes has not been done so they are sold as an approximate number.

Selection Process

Evaluation of the responses to this RFT will be in accordance with the Evaluation Criteria described in AppendixB. Failure to comply with the Standard Conditions may result in immediate exclusion from the Evaluation process.

Notification of Acceptance

Tenders shall remain open for acceptance and shall not be withdrawn for a period of sixty (60) working days from the Closing Date of the tender. Unsuccessful tenderers shall be notified in writing by the Principal or their representative within 10 working days of acceptance of the successful tender.

If no tender is accepted by the Principal within twenty (20) working days after the Closing Date, each tenderer will be notified in writing by the Principal or their representative whether their tender is still under consideration or is no longer being considered.

The Tender Team reserves the right to contact any or all tenderers in order to clarify and points within the tender offer.

The Principal shall not be bound to accept the highest priced tender or the highest scored tender or any tender.

The tenderer must confirm their acceptance of the terms of the contract attached at Appendix D. If the tenderer is unable to agree to any clause, it must set out in a table form the clause reference, reason why the tenderer cannot accept it and proposed alternative wording.

Probity

No gifts or entertainment of any nature will be permitted between any parties involved throughout the tender process, including: tenderers or potential tenderers, tender team members, evaluation team members, the Head of Ministry, or any other member or organisation that may have an involvement with any aspect of the tender process.

Conditions of Tendering

1. Tenders must be completed in the format contained in Appendix A of this RFT. If offers do not comply with this format, they may not be accepted at the discretion of the tender evaluation committee.

2. Tenders must be emailed in accordance with the requirements of this RFT

3. All proposals and related documentation in respect of this RFT must be in the English language.

Appendices

APPENDIX A

Form of Tender

Funds Manager

Ministry of Finance and Economic Management

Rarotonga

Delivered via email Reference in the subject line as:

Disposal of 1992 Cook Island Bank Notes - OOC - SA151602

By the due date: 4.00pm on Friday 21 November 2015

Having examined the Tender Documents in relation to Tender Reference No. SA151602 and dated November 2015, released by Ministry of Finance and Economic Management (MFEM), we submit the following offer.

We offer to purchase the items identified in this tender document as is where is and remove from their designated location (currently in MFEM Storage facilities in Avarua, Cook Islands). We accept that no guarantee is made in terms of condition or fitness for any purpose whatsoever.

We offer to pay MFEM the sum of [insert the price offered in text with the value in numbers thus (NZD$__________.__)] stated exclusive of Value Added Tax, together with such other sums as may be ascertained in accordance with the Contract.

We undertake to remove the property within the period stated in the Conditions of Tendering.

We agree to abide by this Tender for a period of sixty (60) days from the date fixed for receiving the same and it shall remain binding upon us and may be accepted by you at any time before the expiry of that period.

Unless and until a Contract Agreement is prepared and executed, this Tender together with your written acceptance thereof, shall constitute a binding contract between us.

We understand that you are not bound to accept the highest or any tender you may receive.

We understand that no contract shall come into existence, and no legal or other obligations shall arise between us and you (or between us and any other agent of the Principal) in relation to the conduct, outcome or otherwise of the Tender process, prior to and apart from your acceptance of our Tender.

We understand that you may make whatever enquiries you deem necessary regarding our ability to meet the terms of this tender. Further, during the assessment stage we understand and agree that you may request specific information from all tenderers in order to assist your assessment. We acknowledge that a failure to provide such information may result in disqualification from the process.

We provide the following information required to be submitted with this Tender:

Contact details and authorised signature

Proposed removal method

Contact details and authorised signature

Signature:

_______________________________________________________________________

Printed Name:

_______________________________________________________________________

Position Held:

_______________________________________________________________________

Tenderer:

_______________________________________________________________________

Address:

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

Date:

_______________________________________________________________________

E-mail Address:

_______________________________________________________________________

Phone No.:

_______________________________________________________________________

Facsimile No.:

_______________________________________________________________________

Proposed Removal Process

I understand that the bank notes must be removed by me within 30 days of being notified of acceptance of my tender. The method I intend to use to remove the bank notes is as follows:

APPENDIX B

Evaluation Criteria

The Evaluation Criteria has been drawn from the Statement of Requirements, Standard Conditions and Special Conditions as articulated in the RFT. In accordance with clause 24.5 of the Manual, Tenders that did not meet the Standard Conditions are deemed noncompliant and may be excluded from the evaluation, or if applicable the tenderer may be asked to rectify the compliance issues.

Criterion

Standard Conditions

Yes/No

1. Tender is completed in the format contained in Appendix A of the RFT.

2. Tenders are received in the required form in the Tender Box by the closing time specified in the RFT

3. Proposal and related documentation must be in the English language.

Evaluation Criteria

Weight %

4. Price

60

5. Ability to complete the requirements of the tender - Risk

40

Special Conditions

A Weighted Criteria methodology will apply to the evaluation of the Special Conditions of this RFT. The assignment of weightings is based on the following principles:

The Special Conditions that reflect the critical elements of the project will be assigned a weight

Weightings will reflect the relative importance of each criterion

Scores will be based on the information provided in the submitted Tender

Risk

The Evaluation Committee will conduct a Risk Assessment for each Tender submitted. This will identify the most significant risks presented by the Tender and consider the Likelihood of the risk occurring; the consequence of that risk; and a risk mitigation strategy. In conclusion, the mitigated risk will be determined to form an overall measure of the risk represented by each Tender.

The Risk Mitigation Strategy may include the inclusion of specific clauses in the executed contract. Therefore, a Tender considered to be High Risk might still be selected subject to the Tenderers willingness to accept the proposed contract amendments.

APPENDIX C

Illustrations

Original Packaging 10 bands of 100 $10 notes = 1,000 notes in total

2 bands of 100 $50.00 notes shows staining along edges

Unpackaged notes, banded, shows slight staining along edges

APPENDIX D

Agreement for sale of bank notes

Date:

Seller: Ministry of Finance and Economic Management

Buyer:

Background

A. The Seller holds an inventory of 18,000 unused bank notes issued by the Cook Islands Government in 1992 and no longer in circulation, or accepted as legal tender. These are defined as:

Cook Islands 1992 issue $50.00 x 6,000

Cook Islands 1992 issue $20.00 x 6,000

Cook Islands 1992 issue $10.00 x 6,000

B. A tender was held to sell the bank notes and the Buyer was selected as a purchaser of the bank notes as more particularly detailed in Schedule 1.

C. The parties have agreed to the sale of the Bank notes on the condition that the Buyer assumes all responsibility for the removal of the bank notes from their current location within 30 days from the date of signing this agreement.

It is agreed that:

1. Agreement

The Seller agrees to sell and the Buyer agrees to buy those banknotes detailed in the attached Schedule subject to the terms and conditions of this agreement.

2. Price and deposit

The total price is $[amount] VAT inclusive (Price). A 20% deposit on the Price is payable on signing this agreement, the remainder is payable prior to collection of the bank notes. Interest shall be payable for late payment from the date set out in the Schedule at 2% per month or part of a month. Where payment is not made by the required time the Seller may elect to sell the Bank notes to any party at any price.

3. Collection

The Buyer is responsible for collecting the bank notes from the location advised by the Seller. Collection is not permitted prior to the payment of the Price.

4. Transfer of Bank notes to Buyer

Title and risk in the bank notes transfers to the Buyer on payment of the Price.

5. Quality

The Seller does not provide any warranties as to the quality, fitness, or description of the bank notes.

6. Damage by Seller

Where there is damage or any wear other than usual wear and tear during the period between when the tender closes and signing this contract, the Seller will at its option either make good the damage or reduce the Price of the bank notes accordingly.

Signed by the Seller:

Signed by the Buyer:

Schedule 1

Description of bank notes

3 separate parcels of approximately 6,000 bank notes in the following denominations:

Cook Islands 1992 issue $50.00 x 6,000

Cook Islands 1992 issue $20.00 x 6,000

Cook Islands 1992 issue $10.00 x 6,000

The notes are all un-used and 5,000 out of each 6,000 remain in their original sealed packages of 10 bands x 100 notes = 1,000 notes (which does not in most cases fully seal the notes).

The remaining 1,000 of each denomination are out of the plastic wrap but remain banded. Some staining is evident due to their storage for the last 24 years. Pictures are attached herein at Appendix 4 for illustration purposes.

Physical count of notes has not been done so they are sold as an approximate number.

Collection date: (date from which interest accrues if full payment is not made): 30 days following the signing of this agreement