Request for Proposal (RFP)

15 July, 2003

Dear Sir/Madam,

Subject: RFP for the provision of Travel Management Services

UN/UNDP Office in Ukraine requests you, in case of your interest to be considered for UN/UNDP Ukraine Travel Agent slot, to submit a proposal for Travel Management Services (TMS), as per enclosed Terms of Reference (TOR).

Your offer comprising of technical proposal and financial proposal, in sealed envelopes, should reach the following address no later than 14 August 2003

UN Office in Ukraine

01021, Kyiv, Klovskiy Uzviz #1

Attention: Liudmyla Shovkoplias, Manager, Administrative Services

marked "CONFIDENDTIAL"

PROPOSAL - TRAVEL AGENT

If you request additional information, we would endeavor to provide information expeditiously, but any delay in providing such information will not be considered a reason for extending the submission date of your proposal.

You are kindly requested to acknowledge receipt of this letter and to indicate whether or not you intend to submit a proposal.

Yours sincerely,

Liudmyla Shovkoplias

Manager, Administrative Services

United Nations Development Programme

_________________________________________________________________________________________________________

Terms of Reference (TOR)

Objective: The objective of this exercise is to set up an advantageous agreement with one of the most competent travel agencies, fully accredited member of IATA with an access to AMADEUS database, resulting in successful provision of travel management services (TMS), negotiation of working discount system and subsequent cost savings.

Duration: The duration of this agreement is initially 12 months, with the subsequent assessment of the services provided and possible further extension in case of the successful provision of TMS.

I. General Information

Services required by UN agencies:

1. Onward air fare, hotel and car rental reservations as well as travel insurance; whenever possible discount rates for car rentals, assistance in visa issuance;

2. Information on country visa requirements, health, immigration clearance, other government restrictions, and assistance in obtaining travel tax exemption certifications, passports and entry visas to the country;

3. Delivery of airline tickets within eight (8) hours of receipt of UN Agencies responsible person confirmation (or earlier depending on need), and seat assignments on flights, where possible;

4. Reconfirmation and revalidation of airline tickets, re-issued tickets which are returned as a result of changed routing or fare structures and printed itineraries showing complete information on status of reservations on all carriers and hotels;

5. Timely notification to Travelers of airport closing, cancellations or delays in flights, and obtain any reimbursement which may be due on account of canceled or reissued reservations and/or tickets;

6. Possibility of booking and obtaining tickets within seven days a week from 09:00 – 20:00.

7. Investigation on any complaints from Travelers and follow up the recovery of lost baggage;

8. Regular detailed reporting (when required by UN Office) made to UN Office on the services provided, discount, mileage benefit received.

General overview of UN expense and travel activity:

Airfare - average amounts paid for the year 2002 – beyond US$ 200,000 (including domestic and international flights with majority of international flights)

Travel pattern statistics

1. Top ten cities visited: New York, Geneva, Vienna, Bratislava, Istanbul, London, Amsterdam, Moscow, Yerevan, Simferopol.

2. Hotel preferences in Kyiv: hotel Premier Palace, hotel Kyiv, hotel Salut, hotel Ukraina, President Hotel Kyivskyi, Hotel Rus, Hotel Kreschatik

Service configuration

1. Present service arrangement and ultimate goals: The ultimate goal is to set up a successful agreement with one of the most competent travel agencies resulting in good provision of travel management services, working discount system and cost savings.

2. Most satisfied with: an overall 5% discount for travel services provided; good/highly competent/proficient/quick/polite service; provision of the choice of the best/least costly routes possible. Less satisfied with: no discount system.

II. Contract Parameters

1. UN agencies plan to negotiate an initial 1 (one) year contract with a service providor, fully accredited member of IATA, connected to AMADEUS database for the performance of travel services. The service standards to be provided must be of the highest order, and responses to specific questions concerning service dements will be weighted heavily.

2. Considering that UN agencies require a variety of services and financial commitments, we expect these to be included under one contract.

3. UN agencies recognize the importance of confidentiality of the data provided, the proposal information and the travel itineraries and reservations of its travelers. Accordingly, the selected agency must keep confidential all dealings with UN agencies.

4. This Request for Proposal is not to be construed in any way as an offer to contract with the Agency.

5. Please note that UN agencies are not committed to selecting any of the agencies submitting proposals. Furthermore, as quality of services is the principal selection criterion, the UN agencies do not bind themselves in any way to selecting the agent offering the lowest price.

6. UN agencies provide payment to the Travel Agency for TMS via bank transfer at the beginning of each next month.

III. Agency Profile

General agency information.

Please provide us with:

1. Annual report(s) or audited financial statement showing levels of business activity for past two years;

2. Information on the type of ownership and mix locations;

3. Business references/list of other corporate clients being served;

4. A list of individuals by name and title who will be responsible for the servicing of UN Agencies.

IV. Instructions for Recipients

A. UN agencies require the proposal submitted to:

UN Office in Ukraine

01021, Kyiv, Klovskiy Uzviz #1

Attention: Liudmyla Shovkoplias, Manager, Administrative Services

marked "CONFIDENDTIAL"

PROPOSAL - TRAVEL AGENT

B. Responses are due 14 August 2003

C. Respondents must answer questions concisely and eliminate any superfluous messages. The proposal must follow the order of the RFP (Request for Proposal).

D. Addenda to the RFP, if they become necessary, will be forwarded to all original recipients of the RFP.

E. Proposals may be withdrawn by the bidding agency at any time.

F. All proposals are considered the property of UN agencies.

V. Information to be Provided by Recipient Travel Agency

A. Air Travel

1. Describe in detail your ability to secure the lowest available published and/or negotiated airfares.

2. Considering the international scope of UN, describe in detail what your agency has in place to obtain and control cost-effective international faring.

3. Will you guarantee the lowest fare within our policy guidelines? Will you fund the difference?

4. Do you provide negotiated airfares? Please describe how your system works with both domestic and international carriers.

5. In time of emergency, do you have a 24-hour emergency toll-free number? If so, is it a third-party service or company-owned and operated? Is it full service? How would you assist our international travelers?

6. Do you provide an option of the most convenient, least costly fare routes or the final selection by UN agencies travel unit staff?

B. Hotels and Car Rentals

1. Do you have a corporate hotel programme? Please describe and provide examples. Is the programme exclusively yours, or is your agency a participant in a co-operative or third-party programme?

2. Will you help UN agencies in negotiating hotel rates both domestically and internationally?

3. Do you provide written confirmations?

4. Please provide us with your rates for transport service for Borsypil and Zhuliany airport for UN agencies. Do you provide cars with insurance, if so, what are their rates?

C. Document Delivery

Please describe how you plan for ticket delivery for the preferred service configuration and remote locations.

D. Visa

What is your company’s fee for assistance in visa issuance, excluding actual Embassy charge. Please provide us with the list of Embassies inside and outside Kyiv to be served by you.

E. Personnel

1. What type of training do you provide for your personnel?

2. Do you provide incentives for your people? How?

3. How efficient and polite your personnel are in their work with clients? How quick they are in responding to the needs of clients? What means do they use in providing of the feedback (e-mail, fax, phone, etc.). What is the average timing of responses to the queries?

F. Special Services

Indicate any special features, programmes, or services that would be beneficial to UN Agencies and its travelers (e.g. visa processing, "Meet and Greet", Lost baggage follow-up, insurance).

G. Groups. Meetings. Conferences

1. Describe your capabilities for making arrangements for groups, meetings, and conferences.

2. What special skills do you have? Do you negotiate on behalf of your clients?

3. Do you charge for the services provided? Give a brief description of pricing, and emphasize how your pricing structures are different from those of other agencies.

H. International Locations and En Route Services

How will your agency assist UN travelers away from home? Do you have any branch offices worldwide?

I. Implementation

Please provide a detailed implementation plan for the preferred service configuration.

J. Financial Considerations

1. Please describe your financial arrangements based on the information provided for the service configuration.

2. What other cost reduction opportunities are available?

3. What discount are you able to insure in addition to direct discounts based on agreements with airlines?

4. Do you have a system to trace payments/orders report on discounts?

K. Additional Information

1. State additional services and benefits that make your agency unique.

2. Offer alternative service configurations and pricing scenarios.

3. State your management philosophy as it pertains to this account.

4. Describe your overall quality effort beyond quality control.

5. What are you doing to attract and retain personnel? What is your turnover rate, and what are the approximate percentage breakdowns for the various reasons for leaving?