FOR: SERVICE AND MAINTENANCE OF FORKLIFTS FOR A PERIOD OF APPROXIMATELY 5 YEARS AT MATLA, LETHABO, KRIEL, TUTUKA AND ROSHERVILLE:

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1 ROSHERVILLE WORKSHOPS, MATLA WORKSHOPS AND ONSITE AT ESKOM S LETHABO POWER STATION No. ROSH/2015/STR/11 FOR: SERVICE AND MAINTENANCE OF FORKLIFTS FOR A PERIOD OF APPROXIMATELY 5 YEARS AT MATLA, LETHABO, KRIEL, TUTUKA AND ROSHERVILLE: Deadline for tender submission: 10:00 hours on 30 September 2015 TENDERER S NAME (Business Name): BUSINESS REGISTRATION NUMBER: ESKOM VENDOR NUMBER (if any): Page 1 of 52

2 Date Ref: ROSH/2015/STR/11 Enquiries 07 September 2015 Tebogo Phakoago (011) We invite you to submit a tender to provide the goods identified above. The list of documents provided for the purpose of the tender is attached to this Letter of Invitation. The scope of work is given in the Goods Information. The terms and conditions of the proposed contract are identified in Agreements and Contract Data. Eskom Rotek Industries SOC Ltd s Standard Conditions of Tender specifies the actions to be taken during the process of tendering. The section entitled Tender Data provides the details which make the standardised Conditions of Tender specific to this tender, including the criteria you are required to comply with in order to be able to submit a tender in response to this Invitation. The tender documents are supplied to you on the following basis: Free of charge We have delegated the responsibility for this tender to Eskom Rotek Industries SOC Ltd s Limited's Representative whose name and contact details are given in the Tender Data. We deem that a submission of a tender by you in response to this invitation constitutes your acceptance of the Conditions of Tender. Please complete the attached Acknowledgement Form and return by Fax as indicated on the form within 5 days of receiving this Invitation. If you do not intend submitting a tender kindly return all the enclosed documentation together with the Acknowledgement Form, giving your reason for not wishing to participate. We are looking forward to receiving and evaluating your tender. Yours faithfully, Tebogo Phakoago Strategic Sourcing Officer phakoakm@eskom.co.za Page 2 of 52

3 TO: Eskom Rotek Industries SOC Ltd s Representative FROM Attention TEBOGO PHAKOAGO Sender Fax No. Fax No. NO. ROSH/2015/STR/11 ACKNOWLEDGEMENT: SERVICE AND MAINTENANCE OF FORKLIFTS MAKE SIZE SERIAL NO LOCATION Mitsubishi 3 Ton MH 6522 R&D KIPOR 3 Ton HN51100 R&D KIPOR 3 Ton HN51100 TGS Spares Logistics KIPOR 5 Ton KP TGS Spares Logistics Mitsubishi 10 Ton MH R&D HYSTER 16 Ton G019E01937F R&D DOOSAN PRO5 5 Ton N RIGGING DOOSAN 1.8 Ton RN90132 LETHABO DOOSAN PRO5 5 Ton N STRATEGIC STORE DOOSAN 3 Ton ON70717 OSM MANHAND 3 Ton SATELLITE STORE Mitsubishi 2.5 Ton M25D 8525 TGS Matla Works Sunward 3 Ton TGS KRIEL Sunward 7 Ton TGS Kriel Sunward 5 Ton TGS Matla Sunward 3 Ton TGS Tutuka Toyota 1.75 Ton S1206F Logistics Yard Rosherville TCM 7 Ton FD70Z7 Logistics Yard Rosherville We are in receipt of Eskom Rotek Industries SOC Ltd s letter dated 7 September We confirm that the documentation received by us is: (delete / complete as applicable) Either: Correct as stated in the attached list of Contents, and that each document is complete. (Tick box if documentation complete) Or: Incorrect or incomplete for the following reasons: Page 3 of 52

4 Please select either statement 1 or 2 below and delete the other: 1 We have noted the deadline for tender submission (given in the Tender Data) and will be submitting our tender before then and as instructed. We propose to submit a tender in the name of the organisation stated above. (Delete if the following is not applicable) The organisation stated above is a joint venture between: 2 We do not intend to submit a tender for this service, and return all of the attached documentation herewith. Our reason for not wishing to submit a tender is as follows: Yours faithfully For the tenderer Page 4 of 52

5 CONTENTS Tender Data 1.2. Eskom Rotek Industries SOC Ltd s Standard Conditions of Tender (Available at under Tender Bulletin and from Eskom Rotek Industries SOC Ltd s Representative). 2. TENDER RETURNABLES Ref. 1 BASIC COMPLIANCE RETURNABLES Completed and signed tender document (including Cover Sheet) Authorization Form Original and valid SARS Tax Clearance Certificate issued by the South African Revenue Services Original certificate of good standing or proof of application issued by the Compensation Fund (COID) or a licensed compensation insurer To the extent that the tenderer falls within the definition of a designated Employer as contemplated in the Employment Equity Act 55 of 1998, the tenderer is required to furnish the Employer with proof of compliance with the Employment Equity Act, including proof of submission of the Employment Equity report to the Department of Labour. Declaration Regarding Fair Bidding Practices Original cancelled cheque or a stamped letter from the bank confirming banking details Supplier declaration of interest Confidentially and non-disclosure agreement If two or more tenderers form a joint venture, consortium or other unincorporated grouping of two or more persons, a copy of the joint venture agreement entered into between the partners Complete Annexure A SHE Evaluation questionnaire Complete Annexure B SHE Requirements for tender enquiries Comply to Annexure C SHEQ Policy Mandatory for Evaluation Mandatory for contract award X X X X X X X X X X X X X 2 FUNCTIONALITY Proof of turnaround time X Page 5 of 52

6 Proof of accreditation by relevant OEM Proof of forklift maintenance Service report template of: 1. Job card 2. Job completion certificate or report 3. Warranty period on spares and service undertaken per job X X X 3 PRICE AND PREFERENCE Pricing schedule X A valid B-BBEE Verification Certificate from a SANAS or IRBA accredited Verification Agency or for EMEs, a sworn affidavit or a letter from an accounting officer or auditor confirming turnover within threshold per DTI Codes of Good Practice X X 4 APPLY OBJECTIVE CRITERIA 4.1 Financial analysis Audited Financial Statements of the tenderer for the previous two financial years. Tenderers must note that in the case of a joint venture or special purpose vehicle (SPV) especially formed for this tender, audited financial statements for each participant in the JV / SPV is required. 4.2 Mandatory documents for contract award received X 4.3 Satisfies specific goals of tender (per SD&L annexure) X 4.4 Accept contract terms and conditions (per NEC contract) X 4.5 Legal compliance (Tax clearance, COIDA, etc) X X 3. AGREEMENTS AND CONTRACT DATA 3.1. Form of Agreement and Purchaser s Acceptance (Contract award stage only,) 3.2. Contract Data Part 1: Data provided by the Purchaser 4. CONTRACT PRICES (Contract award stage only,) 5. PURCHASER S GOODS INFORMATION Service and maintenance of forklifts as per NEC document attached. Page 6 of 52

7 6. SUPPLIER S GOOD S INFORMATION (Contract award stage only) TENDER DATA 1 General [1.1] Eskom Rotek Industries SOC Ltd s Representative is Name Tebogo Phakoago Address Lower Germiston Road Tel No E mail phakoakm@eskom.co.za [1.2 ] A tenderer is a person, partnership, firm or company eligible to submit a tender in response to this invitation only if it is: Registered (country) in South Africa Included on (tender list) 2 Tenderer's obligations [2.1] The tender documents are listed in the Invitation to Tender, and Addenda [2.7; 3.2] issued by Roshcon SOC Limited [2.2] A Non-compulsory clarification meeting has been arranged for tenderers as follows: Address: RRR Building Stanford A Boardroom Date: 17 September 2015 at 10H00-12H00 [2.3] the closing time for clarification of queries is 5 days before the deadline for tender submission. No questions, during the tendering period will be answered telephonically. Questions must be submitted in writing, either via or fax through to: Name E mail Tebogo Phakoago phakoakm@eskom.co.za Page 7 of 52

8 [2.4] the conditions of contract, available separately, are stated in the Contract Data. [2.5] Alternative tender(s) may be based only on the following criteria and subject to acceptance by Roshcon SOC Limited. A different completion date. Alternative terms of delivery selected from the latest applicable INCOTERMS. Other combinations of secondary option clauses, acceptable to the Purchaser, selected from the Eskom Rotek Industries SOC Ltd s NEC Short Supply Contract. Provision of a financing package where none has been requested by this tender. Different technical methods and specifications. [2.6] The tender may be for the whole only/part of the services Also be in other tender documents where the tenderer is requested to return something as part of his tender. [2.7]. The tender submission documents (returnable) shall be submitted one complete marked original tender document and a one complete marked hard copy of the original. Please Note: The tenderer is required to submit both complete (original and copy of the original). A submission will be rendered non-responsive where the one complete hard copy of is not submitted. Tender submitting copies which are materially incomplete will also be disqualified. [2.8] the invitation to tender number is ROSH/2015/STR/11 [2.9] The place for delivery of the tender is Roshcon SOC Limited s Tender Box located at : Rotek Engineering Security Office Stand 46, Roshland road Lower Germiston Road Rosherville, Johannesburg, Gauteng Next to the Boom Gate [2.10] The deadline for tender submission is 10:00 hours on 30 September 2015 [2.11] The validity period is 12 weeks [2.12] In terms of the Preferential Procurement Policy Framework Act (PPPFA) the 90/10 scoring system will be applicable to this tender. Failure to submit valid and original or certified copy of the B-BBEE will result in the tenderer not qualifying for preferential points The attachments / templates include the following documents that must be part of the tender documentation and be returned with the tender: Page 8 of 52

9 PPPFA REGULATIONS.pdf PPPFA Regulations 2011.pdf 3 Roshcon SOC Limited s Undertakings [3.1] Eskom Rotek Industries SOC Ltd s Representative will determine the evaluated tender price by adjusting the total of the Prices (if any) as follows: Making the specified correction for arithmetical errors. Excluding contingencies in any Activity or Task Schedule. Making an appropriate adjustment for any other acceptable variations, deviations, or alternative tenders submitted. Making a comparison of the Net Present Value of each adjusted tender based on the tendered plan (if provided) and prices, on the estimated effect of Price Adjustment Factors and rate of exchange fluctuations (if applicable) and on other evaluation parameters relating to uncertainty and risk. [3.02, 3.03, 3.04] The number of copies of signed contract documents to be supplied by Roshcon SOC Limited s are: For the NEC Contract: 4 Additional conditions of tender The additional conditions of tender are: Your response should include a covering letter containing full details of the company ownership, names of directors, shareholders/equity ownership, Joint Ventures, strategic alliance and company VAT and registration numbers. In the event that any of the proposed equipment is imported it is necessary to provide the details of the Parent company, a copy of the agreement or a letter must be obtained from the importer indicating that your company is an accredited representative in South Africa. The Tenderers are required to provide a covering letter clearly stating their Acceptance of the NEC CONTRACT and confirm the validity that your tender is valid for 12 weeks from date of closing. Any deviation to the above mentioned conditions will be considered as an alternate offer and need to be recorded in your submission in the following format. Clause Page No. Subject Variation/Comment Page 9 of 52

10 No tippex / correction pen to be used on any page or pages of the documents to be submitted. Failure to comply with this, your tender will be deemed commercially unacceptable. Evaluation Process: Step 1: Acceptable/ Responsive tender Review tender submission for basic compliance with terms and conditions of tenders; Eliminate alternative tenders; Complete copy submitted for evaluation (i.e. one original and one copy); Mandatory returnables to evaluate thresholds and apply preference points system; Authorised tenders Verify supplier Declaration Of Interest Responsive tender proceeds to evaluation of thresholds. Non-responsive disqualified Step 2: Functionality Evaluate submissions against functionality criteria; Rate each submission against each criteria ; Eliminate tenders below minimum qualifying threshold of 60% ; Only tenders meeting minimum qualifying threshold of 60% qualify for price and preference evaluation. Page 10 of 52

11 Functionality criteria CRITERIA REQUIRED LEVEL POINTS RANGE Callout response: Turnaround time 3 1 TO 5 MAINTENANCE SERVICES AND REPAIRS OF RRR FORKLIFTS EVALUATION RANGE 1 = above 24 hours 2 = hour response 3 = 8-16 hour response 4 = 4-8 hour response 5 = 0-4 hour response EVALUATION RANGE - POINTS 1 = 0 points 2 = 10 points 3 = 20 points 4 = 25 points 5 = 30 points SCORING 30 Accreditation by relevant OEM 3 1 TO 2 1 = Not Accredited 2 = Accredited 1 = 0 points 2 = 5 points 5 Experience in Forklift maintenance Services Service Report -Samples of: 1) Job card 2) Job completion certificate/ report 3) Information/ detail on Period on spares and service Undertaken per job 3 1 TO TO 5 1 = No exp 2 = 0-1 Year exp 3 = 2-3 Years exp 4 = 4-5 Years exp 5 = 6+ Years exp 1 = No exp 2 = 1 Year exp 3 = 2 Years exp 4 = 3 Years exp 5 = 4+ Years exp 1 = 5 points 2 = 10 points 3 = 15 points 4 = 20 points 5 = 25 points 1 = 0 points 2 = 5 points 3 = 10 points 4 = 15 points 5 = 20 points 80 Minimum qualifying threshold 60% Step 3 Price and Preference Analysis (90/10) Calculate price points out of 90 (Price = Tendered (tactical) or evaluated (project) price) Maximum 10 points may be allocated to specific goals Apply preference points according to B-BBEE level contribution Add price points and preference points Select tender with highest points (Price Points + Preference Points) Page 11 of 52

12 Table 2 Price Evaluation (90 points) Adjudication Criteria Points Price Evaluation Pt Pmin Ps 901 Pmin Where: Ps Pt = Points scored for price of tender under consideration 90 = Rand value of tender under consideration Pmin = Rand value of lowest acceptable tender B-BBEE Evaluation (10 points) Tenderers are required to submit original and valid B-BBEE Status Level Verification Certificates or certified copies thereof together with their tenders to substantiate the B-BBEE claims. Tenderers who do not submit B-BBEE Status Level Verification Certificates or noncompliant contributors to B-BBEE will not qualify for preference points for B-BBEE however will not be disqualified from the tender process. Such a tenderer will score points out of 90 for price and 0 points out of 10 for B-BBEE. Points awarded to a tenderer for attaining the B-BBEE Status Level of contribution in accordance with the table on next page: Page 12 of 52

13 Table 3 Preferential points B-BBEE Number of Points (90/10 system) Non-compliant 0 contributor The points scored for price will be added to the points scored for B-BBEE status level of contribution to obtain the tenderers total points scored out of a 100. Step 4: Apply Objective criteria Accepted contract terms and conditions Financial analysis Satisfies specific goals of tender (per SD&L annexure) Satisfies Eskom s data base registration minimum requirements. Mandatory for contract award document received. Step 5: Contract award Award contract to the highest ranked tenderer per price and preference who satisfies all objective criteria. Page 13 of 52

14 OBJECTIVE CRITERIA Eskom, as a state owned enterprise, is tasked with achieving government socio-economic transformation and development initiatives through its procurement spend. Therefore, Supplier Development & Localisation (SD&L) sets targets on B-BBEE, Localisation, Industrialisation, Skills Development, Job Creation and Supplier Development elements PPPFA REGULATIONS EXTRACT: PART TWO Awards of contracts to tenderers not scoring the highest number of points Section 7 (1) of the PPPFA regulations states that A contract may be awarded to a tenderer that did not score the highest total number of points, only in accordance with Section 2 (1) (f) of the Act Section 2 (1) (f) of the Act states that the contract must be awarded to the tenderer who scores the highest points, unless objective criteria in addition to those contemplated in paragraphs (d) and (e) justify the award to another tenderer; (d) the specific goals may include i. contracting with persons, or categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender or disability; ii. implementing the programmes of the Reconstruction and Development Programme as published in Government Gazette No dated 23 November 1994; (e) any specific goal for which a point may be awarded, must be clearly specified in the invitation to submit a tender; Therefore, in line with PPPFA extract above: Eskom Rotek Industries SOC Ltd reserves the right to award to a supplier who may not be the highest scoring or highest ranked supplier, in line with Section (2) (1) (f) of the PPPFA. OBJECTIVE CRITERIA OF THE TENDER The specific goals of this tender are the following: Promotion of a Black Owned enterprise within this sector through Eskom s hierarchy of supplier preference and RR s 20:15:15 procurement strategy; Skills development for the currently unemployed local to site communities; and The creation of new jobs for the currently unemployed local to site communities. To achieve above the following aspects will apply: 1) Post 90/10 evaluation, select preferred supplier(s) according to objective criteria as follows:: Page 14 of 52

15 a. Allocate points according to figure 1: i. RR s 20:15:15 procurement strategy ii. Eskom s hierarchy of supplier preference b. Allocate points according to Figure 2 (SD&L Compliance Matrix) c. The points scored for Figure 1 will be added to the points scored for Figure 2 to obtain the tenderer s total points scored on specific goals/ objective criteria d. Award to the highest ranked entity in terms of the specific goals/ objective criteria SD&L condition to award a. All panel members shall be required to achieve a minimum of 60% score in the SD&L Compliance Matrix (Figure 2). 1. B-BBEE Preference will be given to a new supplier that has attained BBBEE Contributor Levels of 1 to 3 and has Black Ownership that is more than 50% using Eskom s hierarchy of supplier preference. Objective criteria will be evaluated according to figure 1 below on the basis of the following principles: a) Hierarchy of supplier preference When sourcing and selecting suppliers for purposes of competitive enquiries / tenders and the awarding of orders / contracts, Eskom Rotek Industries SOC Ltd has a preference to procure in accordance with the following hierarchy of supplier selection: Black Disabled persons or groups operating as Level 1-3 EMEs, or QSEs (Level 1-3 ) Black Youth operating as Level 1-3 EMEs or QSEs (Level 1-3) Black Women-Owned Businesses (BWOs) being Level 1-3 EMEs, or QSEs (Level 1-3) Black Owned being Level 1-3 EMEs, or QSEs (Level 1-3) (SMEs) Black Owned being (Generic - Level 1-3) From a South African based manufacturer or service provider; From a South African distributor of local South African manufactured products; From a foreign supplier, directly imported by Eskom; and From a Value-adding Agency (as defined in this Procedure), being a local supplier of imported products / services b) Eskom Rotek Industries SOC Ltd Limited preferential procurement 20:15:15 strategy To facilitate and incubate the introduction of new suppliers within the hierarchy of procurement and to promote job retention and creation whilst diversifying our supply base, Eskom Rotek Industries Page 15 of 52

16 SOC Ltd s has introduced a 20:15:15 strategy. Eskom Rotek Industries SOC Ltd s intends to reach a target of 50% new suppliers by 2016, broken down as follows: Figure 1: 20:15:15 scoring criteria RR will use the table below to measure objective criteria / 20:15:15 points specific goals Classification New Black Disabled Black Youth BWO BWO BO BO Total 51%-100% 51%-100% 76%-100% 51%-76% 76%-100% 51%-76% New EME New QSE New LME Other Note: New supplier refers to: - Business entities that are newly registered on the supplier database and complies with all the RR commercial requirements. - Inactive Vendors who were previously loaded on the RR database and not being used who complies to all the commercial requirements - Vendors sourced through Eskom Transversal contracts whereby RR formed part of the contract arrangement Should the preferred service provider be between B-BBEE Level 4 to 8 and/or non-compliant, Eskom Rotek Industries SOC Ltd will require a migration plan, within thirty days of signing a contract, Page 16 of 52

17 indicating how the minimum required level 3 will be achieved. This migration plan shall indicate how the supplier will improve its B-BBEE status to the expected B-BBEE status (equivalent to Eskom Rotek Industries SOC Ltd s BBBEE status). 2. Localisation Local Content to South Africa: The local content target is set at 100% of the contract value. Local Content Local to Site: The local to site target is set at 50% of the Local Content value. This means that 50% of the local content shall be sourced firstly from, areas within the 60 kilometre radius of the project site, then within local municipal district and /or the province in which the services will be consumed. Resources that may be sourced Local to Site include jobs, skills development candidates or sub-contracting. 3. Industrialisation The supply market is already local, therefore there will be no definitive targets set for industrialisation. 4. Skills Development As part of skills development, skills candidates will be developed in the various skills types mentioned in the Skills Development Matrix (Figure 2) below. These skills types address the demands of the national scarce skills as identified within the relevant SETA. A total number of 1 skills development candidates shall be developed Local to Site. The skills candidates may be developed directly by the service provider, through the service provider s own supply network or through the SETA accredited training providers. Skills candidates shall be currently unemployed graduates from FET (Further Education and Training) colleges, universities or matriculants. These candidates shall also be representative of the population demographics of South Africa. 5. Job Creation Suppliers should mention the number of jobs created and retained as a direct result of the contract. These proposals shall be made in the SD&L Compliance Matrix (Figure 2) as shown below. The expectation will be that suppliers will have a core team, which will be made up of specialised skills that may not be sourced in the areas surrounding the site. It will be required that at least 50% of all semi-skilled and 100% of all unskilled labour that will be utilised in executing the works, will be sourced from areas local to the site. Page 17 of 52

18 6. Supplier Development Supplier must indicate and submit the plan to develop the capability and capacity of its subcontractor(s). The Supplier Development plan must be aligned to the DTI Codes of Good Practice relevant element and must answer the following two key questions: i. What is being done to enhance the financial capacity of beneficiary? and ii. What is being done to improve the operational capacity of beneficiary Every contract should be accompanied by the SD&L implementation schedule which must be completed by the supplier and returned to SD&L within 30 days of contract award. This will be used as a reference document for monitoring, measuring and reporting on the supplier s progress in delivering on their stated SD&L commitments. Figure 2 SD&L Compliance Matrix for Machine Maintenance Services for TGS at Matla Definitions: Page 18 of 52

19 Black: African, Coloured, Indian or Chinese persons who are natural persons and who are: a. Citizens of the Republic of South Africa by birth or descent; or b. Citizens of the Republic of South Africa by naturalization before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or c. Citizens of the Republic of South Africa by becoming citizens only after the commencement date of the Constitution of the Republic of South Africa Act of 1993, who, but for apartheid which had been in place prior to that date, would have been entitled to acquire citizenship by naturalization, prior to that date. Accredited Verification Agency: An accredited verification agency is one that has fulfilled all prescribed legislative requirements for operating as a verification agency in terms of the B-BBEE Act and / or any other applicable legislation. Exempted Micro Enterprise (EME): EME refers to a Supplier with a total revenue not exceeding R5m, or as otherwise prescribed within relevant Sector Codes, who have an automatic B-BBEE Status of a Level Four Contributor, or a BBBEE Status of a Level Three Contributor where more than 50% Black Owned, without the requirement of a B-BBEE verification certificate being mandatory. Qualifying Small Enterprise (QSE): Suppliers with turnovers of between R5m and R35m, or as otherwise prescribed within relevant Sector Codes, will be measured against four elements of the QSE Scorecard as set out in the B- BBEE Codes of Good Practice. Large Measured Entity (LME): Large Suppliers with turnovers in excess of R35m (thirty five million Rand) will be measured against all seven elements of the Generic Scorecard as set out in the B-BBEE Codes of Good Practice. Disabled Supplier: Disabled Suppliers refers to persons with a long term or recurring physical or mental impairment that Page 19 of 52

20 Substantially limits their entry into, or advancement in employment. BPLwD: An EME or QSE that is more than 50% owned and effectively managed by Black disabled supplier. Youth Persons between ages 14 to 35 (inclusive of both ages) BYO: An EME or QSE that is more than 50% owned and effectively managed by Black youth. BWO: An EME or QSE that is more than 50% owned and effectively managed by Black women. BO: An EME or QSE that is more than 50% owned and effectively managed by Black persons. Evaluation process to be followed; STEP 1: Price and Preference Points System (90/10) Decision Factors Weighting Score Price 90% B-BBEE 10% Price Evaluation (90 points) Adjudication Criteria Points Where: Ps = Points scored for comparative price of tender under consideration Pt = Comparative price of tender under consideration Pmin = Comparative price of lowest acceptable tender B-BBEE Evaluation (10 points) Tenderers are required to submit original and valid B-BBEE Status Level Verification Certificates or certified copies thereof together with their tenders to substantiate the B-BBEE claims. Tenderers who do not submit B-BBEE Status Level Verification Certificates or non-compliant contributors to B-BBEE will not qualify for preference points for B-BBEE however will not be disqualified from the tender process. Such a tenderer will score points out of 90 for price and 0 points out of 10 for B-BBEE. Page 20 of 52

21 Points awarded to a tenderer for attaining the B-BBEE Status Level of contribution in accordance with the table below: B-BBEE Status Level of Contributor Number of points (90/10 system) Non-compliant contributor 0 Combine Final Evaluation: B-BBEE: 90% Price: 10% The points scored for price will be added to the points scored for B-BBEE status level of contribution to obtain the tenderers total points scored out of a 100. Roshcon reserves the right to award a tender to a supplier who may not be the highest-scoring or highest-ranked supplier, for the purpose of maximising recognition of black ownership, black management control, skills development, and/or preferential procurement in line with section (2)(1)(f) of the PPPFA PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011 This preference form must form part of all tenders invited. It contains general information and serves as a claim form for preference points for Broad-Based Black Economic Empowerment (B- BBEE) Status Level of Contribution Page 21 of 52

22 NB: BEFORE COMPLETING THIS FORM, TENDERERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B- BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, GENERAL CONDITIONS 1.1 The following preference point systems are applicable to all tenders: - The 80/20 system for requirements with a Rand value of up to R (all applicable taxes included); and - The 90/10 system for requirements with a Rand value above R (all applicable taxes included). 1.2 The value of this tender is estimated to exceed R (all applicable taxes included) and therefore the 90/10 system shall be applicable. 1.3 Preference points for this tender shall be awarded for: (a) (b) Price; and B-BBEE Status Level of Contribution The maximum points for this tender are allocated as follows: PRICE B-BBEE STATUS LEVEL OF CONTRIBUTION 10 Page 22 of 52 Total points for Price and B-BBEE must not exceed 100 POINTS 1.4 Failure on the part of a tenderer to fill in and/or to sign this form and submit a B-BBEE Verification Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the tender, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed The purchaser reserves the right to require of a tenderer, either before a tender is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser. 2. DEFINITIONS

23 2..1 all applicable taxes includes value-added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills development levies; 2.2 B-BBEE means broad-based black economic empowerment as defined in section 1 of the Broad -Based Black Economic Empowerment Act; 2.3 B-BBEE status level of contributor means the B-BBEE status received by a measured entity based on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act; 2.4 tender means a written offer in a prescribed or stipulated form in response to an invitation by an organ of state for the provision of services, works or goods, through price quotations, advertised Competitive tendering processes or proposals; 2.5 Broad-Based Black Economic Empowerment Act means the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); 2.6 comparative price means the price after the factors of a non-firm price and all unconditional discounts that can be utilized have been taken into consideration; 2.7 consortium or joint venture means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract; 2.8 contract means the agreement that results from the acceptance of a tender by an organ of state; 2.9 EME means any enterprise with annual total revenue of R5 million or less Firm price means the price that is only subject to adjustments in accordance with the actual increase or decrease resulting from the change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax, which, in terms of the law or regulation, is binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the execution of the contract; 2.11 functionality means the measurement according to predetermined norms, as set out in the tender documents, of a service or commodity that is designed to be practical and useful, working or operating, taking into account, among other factors, the quality, reliability, viability and durability of a service and the technical capacity and ability of a tenderer; 2.12 non-firm prices means all prices other than firm prices; Page 23 of 52

24 2.13 person includes a juristic person; 2.14 rand value means the total estimated value of a contract in South African currency, calculated at the time of tender invitations, and includes all applicable taxes and excise duties; 2.15 sub-contract means the primary contractor s assigning, leasing, making out work to, or employing, another person to support such primary contractor in the execution of part of a project in terms of the contract; 2.16 total revenue bears the same meaning assigned to this expression in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act and promulgated in the Government Gazette on 9 February 2007; 2.17 trust means the arrangement through which the property of one person is made over or bequeathed to a trustee to administer such property for the benefit of another person; and 2.18 trustee means any person, including the founder of a trust, to whom property is bequeathed in order for such property to be administered for the benefit of another person. 3. ADJUDICATION USING A POINT SYSTEM 3.1 The tenderer obtaining the highest number of total points will be awarded the contract. 3.2 Preference points shall be calculated after prices have been brought to a comparative basis taking into account all factors of non-firm prices and all unconditional discounts; Points scored must be rounded off to the nearest 2 decimal places. 3.4 In the event that two or more tenders have scored equal total points, the successful tender must be the one scoring the highest number of preference points for B-BBEE 3.5 However, when functionality is part of the evaluation process and two or more tenders have scored equal points including equal preference points for B-BBEE, the successful tender must be the one scoring the highest score for functionality. 3.6 Should two or more tenders be equal in all respects, the award shall be decided by the drawing of lots. Page 24 of 52

25 4. POINTS AWARDED FOR PRICE 4.1 THE 90/10 PREFERENCE POINT SYSTEMS A maximum of 90 points is allocated for price on the following basis: 90/10 Where Pt Pmin Ps 901 Pmin Ps = Points scored for comparative price of tender under consideration Pt = Comparative price of tender under consideration Pmin = Comparative price of lowest acceptable tender 5. Points awarded for B-BBEE Status Level of Contribution 5.1 In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference points must be awarded to a tenderer for attaining the B-BBEE status level of contribution in accordance with the table below: B-BBEE Status Level of Contributor Number of points (90/10 system) Page 25 of 52

26 Non-compliant contributor 0 Combine Final Evaluation: B-BBEE: 10% Price: 90% The points scored for price will be added to the points scored for B-BBEE status level of contribution to obtain the tenderers total points scored out of a 100. The tenderer scoring the highest points will be awarded the contract. 5.2 Tenderers who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an Accounting Officer as contemplated in the CCA or a Verification Agency accredited by SANAS or a Registered Auditor. Registered auditors do not need to meet the prerequisite for IRBA s approval for the purpose of conducting verification and issuing EMEs with B-BBEE Status Level Certificates. 5.3 Tenderers other than EMEs must submit their original and valid B-BBEE status level verification certificate or a certified copy thereof, substantiating their B-BBEE rating issued by a Registered Auditor approved by IRBA or a Verification Agency accredited by SANAS. 5.4 A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a legal entity, provided that the entity submits their B-BBEE status level certificate. 5.5 A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an unincorporated entity, provided that the entity submits their consolidated B-BBEE scorecard as if they were a group structure and that such a consolidated B-BBEE scorecard is prepared for every separate tender. 5.6 Tertiary institutions and public entities will be required to submit their B-BBEE status level certificates in terms of the specialized scorecard contained in the B-BBEE Codes of Good Practice. 5.7 A person will not be awarded points for B-BBEE status level if it is indicated in the tender documents that such a tenderer intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a tenderer qualifies for, unless the intended sub- contractor is an EME that has the capability and ability to execute the sub-contract. 5.8 A person awarded a contract may not sub-contract more than 25% of the value of the contract to any other Enterprise that does not have an equal or higher B-BBEE status level than the person concerned, unless the contract is sub-contracted to an EME that has the capability and ability to execute the sub-contract. Page 26 of 52

27 6. TENDER DECLARATION 6.1 Tenderers who claim points in respect of B-BBEE Status Level of Contribution must complete the following: 7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS AND B-BBEE Status Level of Contribution: = (maximum of 10 or 20 Points) (Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 5.1 and must be substantiated by means of a B-BBEE certificate issued by a Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or an Accounting Officer as contemplated in the CCA). 8 SUB-CONTRACTING 8.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable) If yes, indicate: (i) What percentage of the contract will be subcontracted?.... % (ii) The name of the sub-contractor?.. (iii) The B-BBEE status level of the sub-contractor?.. (iv) Whether the sub-contractor is an EME? YES / NO (delete which is not applicable) 9 DECLARATION WITH REGARD TO COMPANY/FIRM 9.1 Name of company/firm : VAT registration number : Company registration number. : Page 27 of 52

28 9.4 TYPE OF COMPANY/ FIRM Partnership/Joint Venture / Consortium One person business/sole propriety Close corporation Company (Pty) Limited [TICK APPLICABLE BOX] 9.5 DESCRIBE PRINCIPAL BUSINESS ACTIVITIES COMPANY CLASSIFICATION Manufacturer Supplier Professional service provider Other service providers, e.g. transporter, etc. [TICK APPLICABLE BOX] 9.7 Total number of years the company/firm has been in business? 9.8 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on the B-BBE status level of contribution indicated in paragraph 7 of the foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we acknowledge that: (i) (ii) (iii) The information furnished is true and correct; The preference points claimed are in accordance with the General Conditions as indicated in paragraph 1 of this form. In the event of a contract being awarded as a result of points claimed as shown in paragraph 7, the contractor may be required to furnish documentary proof to the satisfaction of the purchaser that the claims are correct; Page 28 of 52

29 (iv) If the B-BBEE status level of contribution has been claimed or obtained on a fraudulent basis or any of the conditions of contract have not been fulfilled, the purchaser may, in addition to any other remedy it may have (a) (b) (c) (d) (e) Disqualify the person from the tendering process; Recover costs, losses or damages it has incurred or suffered as a result of that person s conduct; Cancel the contract and claim any damages which it has suffered as a result of having to make less favourable arrangements due to such cancellation; Restrict the tenderer or contractor, its shareholders and directors, or only the shareholders and directors who acted on a fraudulent basis, from obtaining business from any organ of state for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been applied; and Forward the matter for criminal prosecution WITNESSES: 1. SIGNATURE(S) OF TENDERER(S) 2. Page 29 of 52

30 DATE:.. ADDRESS:.... Page 30 of 52

31 DECLARATION CERTIFICATE FOR LOCAL PRODUCTION AND CONTENT This standard document must form part of all tender. It contains general information and serves as a declaration form for local content (local production and local content are used interchangeably). Before completing this declaration, tenderers must study the General Conditions, Definitions, Directives applicable in respect of Local Content as prescribed in the Preferential Procurement Regulations, 2011 and the South African Bureau of Standards (SABS) approved technical specification number SATS 1286:201x. 1. General Conditions 1.1. Preferential Procurement Regulations, 2011 (Regulation 9. (1) and 9. (3) make provision for the promotion of local production and content Regulation 9.(1) prescribes that in the case of designated sectors, where in the award of tenders local production and content is of critical importance, such tenders must be advertised with the specific tendering condition that only locally produced goods, services or works or locally manufactured goods, with a stipulated minimum threshold for local production and content will be considered Regulation 9.(3) prescribes that where there is no designated sector, a specific tender condition may be included, that only locally produced services, works or goods or locally manufactured goods with a stipulated minimum threshold for local production and content, will be considered Where necessary, for tenders referred to in paragraphs 1.2 and 1.3 above, a two stage tendering process may be followed, where the first stage involves a minimum threshold for local production and content and the second stage price and B-BBEE A person awarded a contract in relation to a designated sector, may not sub-contract in such a manner that the local production and content of the overall value of the contract is reduced to below the stipulated minimum threshold The local content (LC) as a percentage of the tender price must be calculated in accordance with the SABS approved technical specification number SATS 1286: 201x as follows: LC = 1 x 100 Where x imported content y tender price excluding value added tax (VAT) Page 31 of 52

32 Prices referred to in the determination of x must be converted to Rand (ZAR) by using the exchange rate published by South African Reserve Bank (SARB) at 12:00 on the date, one week (7 calendar days) prior to the closing date of the tender as indicated in paragraph 4.1 below A tenderer will be disqualified if: the tender fails to achieve the stipulated minimum threshold for local production and content indicated in paragraph 3 below; and. this declaration certificate is not submitted as part of the tender documentation. 2. Definitions 2.1. tender includes advertised competitive offers, written price quotations or proposals; 2.2. tender price price offered by the tenderer, excluding value added tax (VAT); 2.3. contract means the agreement that results from the acceptance of a tender by an organ of state; 2.4. designated sector means a sector, sub-sector or industry that has been designated by the Department of Trade and Industry in line with national development and industrial policies for local production, where only locally produced services, works or goods or locally manufactured goods meet the stipulated minimum threshold for local production and content; 2.5. duly sign means a Declaration Certificate for Local Content that has been signed by the Chief Financial Officer or other legally responsible person nominated in writing by the Chief Executive, or senior member / person with management responsibility(close corporation, partnership or individual) imported content means that portion of the tender price represented by the cost of components, parts or materials which have been or are still to be imported (whether by the supplier or its subcontractors) and which costs are inclusive of the costs abroad, plus freight and other direct importation costs, such as landing costs, dock duties, import duty, sales duty or other similar tax or duty at the South African port of entry; 2.7. local content means that portion of the tender price which is not included in the imported content, provided that local manufacture does take place; 2.8. stipulated minimum threshold means that portion of local production and content as determined by the Department of Trade and Industry; and Page 32 of 52

33 2.9. Sub-contract means the primary contractor s assigning, leasing, making out work to, or employing another person to support such primary contractor in the execution of part of a project in terms of the contract. 3. The stipulated minimum threshold(s) for local production and content for this tender is/are as follows: Description of services, works or goods Stipulated minimum threshold % % % 4. Does any portion of the services, works or goods offered have any imported content? YES / NO 4.1 If yes, the rate(s) of exchange to be used in this tender to calculate the local content as prescribed in paragraph 1.6 of the general conditions must be the rate(s) published by SARB for the specific currency at 12:00 on the date, one week (7 calendar days) prior to the closing date of the tender. The relevant rates of exchange information is accessible on Indicate the rate(s) of exchange against the appropriate currency in the table below: Currency US Dollar Pound Sterling Euro Yen Other Rates of exchange NB: Tenderers must submit proof of the SARB rate (s) of exchange used. Page 33 of 52

34 LOCAL CONTENT DECLARATION BY CHIEF FINANCIAL OFFICER OR OTHER LEGALLY RESPONSIBLE PERSON NOMINATED IN WRITING BY THE CHIEF EXECUTIVE OR SENIOR MEMBER/PERSON WITH MANAGEMENT RESPONSIBILITY (CLOSE CORPORATION, PARTNERSHIP OR INDIVIDUAL) IN RESPECT OF TENDER No.... ISSUED BY: (Procurement Authority / Name of Institution):... NB The obligation to complete, duly sign and submit this declaration cannot be transferred to an external authorized representative, auditor or any other third party acting on behalf of the tenderer. I, the undersigned,... (full names), do hereby declare, in my capacity as.. of...(name of tender entity), the following: (a) The facts contained herein are within my own personal knowledge. (b) I have satisfied myself that the goods/services/works to be delivered in terms of the above-specified tender comply with the minimum local content requirements as specified in the tender, and as measured in terms of SATS (c) The local content has been calculated using the formula given in clause 3 of SATS 1286, the rates of exchange indicated in paragraph 4.1 above and the following figures: Tender price, excluding VAT (y) Imported content (x) Stipulated minimum threshold for Local content (paragraph 3 above) Local content %, as calculated in terms of SATS 1286 R R If the tender is for more than one product, a schedule of the local content by product shall be attached. (d) I accept that Eskom has the right to request that the local content be verified in terms of the requirements of SATS (e) I understand that the awarding of the tender is dependent on the accuracy of the information furnished in this application. I also understand that the submission of incorrect data, or data that are not verifiable as described in SATS 1286, may result in the Page 34 of 52

35 Procurement Authority / Institution imposing any or all of the remedies as provided for in Regulation 13 of the Preferential Procurement Regulations, 2011 promulgated under the Policy Framework Act (PPPFA), 2000 (Act No. 5 of 2000). SIGNATURE: WITNESS No. 1 WITNESS No. 2 DATE: DATE: DATE: Annex-c_Local Annex-d_Imports Annex-e_Local content Declaration-S Declaration-Supportin Content Declaration-S Page 35 of 52

36 Authority to submit a tender / offer Indicate the status of the tenderer by ticking the appropriate box hereunder. The tenderer must complete the certificate set out below for his category of organisation or alternatively attach a certified copy of a company / organisation document which provides the same information for the relevant category as requested here. A COMPANY B CLOSE CORPORATION C PARTNERSHIP D JOINT VENTURE E SOLE PROPRIETOR A. Certificate for company I, _. _, chairperson of the board of directors of., hereby confirm that by resolution of the board taken on (date), Mr/Ms, acting in the capacity of _, was authorised to sign all documents in connection with this tender offer and any contract resulting from it on behalf of the company. Signed Date Name Position Chairman of the Board of Directors Page 36 of 52

37 B. Certificate for close corporation I, _. _, member of, hereby confirm that by majority vote of the members taken on (date), Mr/Ms, acting in the capacity of _, was authorised to sign all documents in connection with this tender offer and any contract resulting from it on behalf of the company. Signed Date Name Position Member C. Certificate for partnership We, the undersigned, being the key partners in the business trading as _ hereby authorise Mr/Ms, acting in the capacity of _, to sign all documents in connection with the tender offer for Contract and any contract resulting from it on our behalf. Name Address Signature Date NOTE: This certificate is to be completed and signed by the full number of Partners necessary to commit the Partnership. Attach additional pages if more space is required. Page 37 of 52