17 September 2002
KCRC awards duty free concession
The Kowloon-Canton Railway Corporation announced today (17 September 2002) that its Managing Board has awarded a five-year franchise for selling duty free goods, general merchandise and specialty goods at Hung Hom, Mong Kok, Kowloon Tong and Lo Wu stations, and on board the KCR Guangzhou through train (Ktt) to DFB Services & Consultants Ltd.
The franchise will last for a period of five years from 1 January 2003 to 31 December 2007. The award was made following an open tendering exercise.
Prior to tenders being invited, the Corporation drew up a set of technical and financial evaluation criteria against which tenders were to be assessed. The technical criteria covered areas such as the tenderers' experience, market knowledge and business strategy, while the financial criteria covered the minimum monthly fee which each tenderer would pay to the Corporation in return for operating the franchise and the security deposit which they would offer to guarantee payment of the monthly fee.
Marks were assigned to each of these criteria, with the tenderer achieving the highest total marks being awarded the franchise. The criteria and the marking scheme were both approved by the Corporation's Managing Board.
Advertisements inviting tenders were published in the media on 31 May 2002 and tenders were closed on 9 July 2002. The Corporation's principal tender board evaluated the tenders received in accordance with the approved criteria, and made a recommendation to the Managing Board via the Property Committee of the Board. The Managing Board then awarded the franchise to DFB Services & Consultants Ltd, which had achieved the highest score.