PART 2 - TERMS OF REFERENCE

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1 PART 2 - TERMS OF REFERENCE Cacadu Development Agency - Terms of Reference CALL FOR PROPOSALS: Investigation Study to develop a framework plan to establish a Green Mohair Production Centre at the Somerset East Industrial Park. 1- PROJECT DESCRIPTION: General: In terms of the mandate received from the Sarah Baartman District Municipality (SBDM), via a Service Level Agreement (SLA), concluded an signed in September 2015, the Cacadu Development Agency (CDA) is requested to develop local economic projects that could potentially have a macro benefit on the holistic economy of the district. It is important to note that the primary driver of all the CDA s projects is job creation, skills development and social upliftment. Furthermore all core projects are designed to be catalytic and to encourage private sector investment in order to create a conduit platform for value added downstream and upstream opportunities. The prevailing challenges in this respect are the rural context, limited resources and unsustainable levels of unemployment and poverty. The CDA, as a local government institution, employs a policy of alignment of its programs to all Government policies and is confident that both this and its other projects are fully compliant with both the spirit and aspirations of Government Policy and guidelines. Project Location: Somerset East is located in the Cacadu District of the Eastern Cape Province and is the largest town of the Blue Crane Route Municipality. The proposed site for the establishment of the Greening Facility is at the Somerset East Industrial Park. 3- PROJECT INFORMATION: Background to Mohair Industry: (i) Mohair properties Mohair is a natural fibre with a unique set of properties. These include: Lustre: The fibres natural lustre gives garments a silky sheen. Mohair garments are ideal for day and night wear. Lightweight: Mohair is very lightweight. Garments, rugs, blankets, shawls and other apparel are so light that one is scarcely conscious of them, but they provide incredible warmth. Insulation qualities: The thermal insulation qualities of mohair have already been mentioned, but Mohair also provides very good sound insulation. Dye-responsive: Mohair takes dye very well and retains the colour.

2 Moisture & temperature control: Mohair breathes absorbing and releasing moisture, wicking moisture away from the body and controlling its own climate for optimal comfort. It is cool in summer and warm in winter. Durability: Mohair is one of the most elastic and strong natural fibres. The fibres are long and extremely durable. Crease Resistant: Mohair s natural elasticity ensures that materials made of mohair do not crease and hold their shape. Mohair also does not matt like many other natural fibres. Flame Resistant: Mohair is non-flammable making it particularly good for articles of apparel and for use in niche markets like the aviation industry or areas where potential fire is a concern. Mohair is classed according to thickness, length, style and character, the absence of kemp fibre, coloured and contaminated fibres, clean yield and uniformity. There are essentially six broad grades of mohair, ranging from super fine kid (under 26 microns) to adult (35+ microns). The global mohair clip is approximately 4.4 million kg s (4,400 metric tons). The South African clip is approximately 2.2 million kg s (2,200 metric tons), about 50% of the global clip. However, South Africa is by far the biggest producer of high quality mohair. South Africa imports approximately 1,200,000 kg s of mohair (46% from Lesotho) and processes 90% of the world production. Production has fallen, both in South Africa and globally over the last 20 years and prices have fluctuated widely. Over the last four years the prices have been good and the weakened ZA Rand has assisted local farmers whose costs are largely in ZA Rand while the purchasers use currencies that have strengthened significantly against the Rand. (ii). What is green mohair? The terms green or sustainable often refer to products, services or practices that allow for economic development while conserving for future generations. Other definitions describe a green product as one that has less of an environmental impact or is less detrimental to human health than the traditional product equivalent. It is worth noting that almost no product will ever be 100% green, since all product development will have some impact on the surrounding environment. It all comes down to degrees of impact and trading off between impacts. To understand the trade-offs one should realize that there are select attributes that describe green products and services; these are listed below. Green products are: Energy efficient and produced in an energy efficient manner, durable and often have low maintenance requirements. Free of Ozone depleting chemicals, toxic compounds and don t produce toxic by-products. Often made of recycled materials or content or from renewable and sustainable sources. Obtained from local manufacturers or resources. Biodegradable or easily reused either in part or as a whole. Biodiversity friendly, produced in a way that limits the impact on biodiversity and does not impact negatively on important biodiversity.

3 To this list, many companies are attaching issues of social responsibility and fairness. The Fair Trade movement, were pioneers in this, but many other companies have followed and insist that employment practices and living conditions for the people producing the product are not severely exploitative. (iii). Opportunity: There are significant opportunities associated with green mohair and green wool. These are linked to accessing niche markets where premium prices can be realised. These markets are associated with specialist, high value uses in the fashion and aeronautical industries and are being explored by the Innovations in Smallholder Agriculture in South Africa for Climate Change Resilience (ISASAR) Project at Nelson Mandela Metropolitan University (NMMU) in partnership with Cacadu Development Agency (CDA). Greening production also provides preferential access to markets over non- green products. ISASAR and CDA are also investigating several new applications for green mohair in a range of new fields. To take advantage of these opportunities and the strategic location of the Somerset East Industrial Park at the centre of the mohair production area in South Africa, the CDA is, in partnership with NMMU ISASAR and others, looking to investigate the establishment of a Green Mohair Production Centre in the Somerset East Industrial Park. To advance this process the CDA is seeking the services of a suitably qualified individual or company to investigate issues relating to the Green Mohair Production Centre. 4- PROPOSAL SCOPE: The call for proposal is based on the following requirements: 1- An investigation study to draft a framework plan for the establishment of the Green Mohair Production Centre, and will include a detailed investigation of the: Components and process of a Green Mohair Production Centre (GMPC). The appropriate size for GMPC. Availability of appropriate mohair grade and green. This will include an analysis of farmer attitudes with regard to shifting to green production. Costing for the GMPC. Power requirements for the GMPC. Water requirements for the GMPC and options relating to recycling and conservation of water. Staffing requirements 2- Other requirements. A second major component of the research study will comprise an assessment of on-farm greening kits, their key elements and acceptability. Specifically: Can the kits be simplified? Predator control measures (relating to biodiversity elements). Costs & effort required of farmers in meeting the kit requirements.

4 3- The related item to cover accreditation & certification issues relating to green production: Certification issues what global certification examples? ISO 14000, Fair Trade, Energy Star, Green Seal, EU Eco Label etc. Certification standards & requirements appropriate for mohair and wool. What will it cover energy, biodiversity, social responsibility. Global acceptability criteria. Identification of possible certification agencies. 5- GENERAL INFORMATION: All service providers preparing proposals should take note of the following general notes and disclaimers. By submitting a proposal, all service providers agree that they are familiar with the content of this section: 1. The CDA reserves the right to decide on the preferred proposal based on the criteria set out in this document. 2. The CDA reserves the right to decide not to proceed with any part of the proposal or it in its entirety. 3. The CFP must be valid for a period of 90 days from the closing date and time for submission of proposals. 4. No late submissions will be entertained. 6- COMPULSORY BRIEFIENG SESSION A briefing session will be held in Somerset East, Eastern Cape on the 9 th of September 2016 at the Boschberg Tourism Hub Active centre, 8 Bell Street, Somerset East at 12h00; any enquiries or request for directions to be addressed to: Project Manager: Mr. Chris Wilken Cell no: ; cwilken@cacadudevelopment.co.za 7- EVALUATION OF TENDER The evaluation of this Bid will be conducted in the following two (2) stages: Stage 1: Assessment of functionality The assessment of functionality will be done in terms of the evaluation criteria. A Bid will be disqualified if it fails to meet the minimum threshold of 70% for functionality as per the Bid invitation and will not proceed to the 2 nd stage of evaluation. Functionality Criteria The following criteria is used to determine the functionality of the call: - Project Team: The study is of a technical nature and requires team members that have previous experience in: - scientific Mohair fibre research

5 - practical experience in Mohair processing systems, factory layout and factory operations; - practical knowledge of Mohair farming operations, inclusive of working with the Mohair farming fraternity; - specific experience in International Green Certification systems. - Approach: The methodology that will be used to compile the three study areas (see Project Scope) needs to be clearly demonstrated in the bid; Special emphasis on the approach and understanding of the following study areas: The understanding of the process to design the green production centre lay out; General approach to addressing the on-farm Greening kit with special reference to the approach to the predator control issue. Demonstrate the understanding of the International Greening Certification process. CRITERIA WEIGHT VALUE 1-5 SCORE Project Team 40 Max Approach (Holistic) 40 Max TOTAL 80 (TW) 400 (MPS) Stage 2: (Pricing competiveness and BEE) Preference points systems Only those qualifying Bids will be evaluated in terms of the 80/20 preference points systems, where the 80 will be used for price (VAT inclusive) and the 20 for points awarded for B-BBEE status level of contribution as follows: Points awarded for B-BBEE Status Level of Contribution B-BBEE Status Level of Number of Points Contributor Non-Compliant Contributor 0

6 NB: In order to claim for these points, Bidders are required to submit an original and valid B-BBEE Status level Verification Certificates or certified copies thereof together with their Bids to substantiate their B-BBEE rating claims. 8- SUBMISSION OF PROPOSALS Bidders are reminded that it is their responsibility to ensure submission of their tenders not later than the time and closing date indicated in the Call for Proposal. It is the bidder s responsibility to choose a means of delivery that will ensure receipt by the CDA at the time and date specified. (No electronic Tenders allowed) Proposals should be submitted in a sealed envelope, clearly marked Call for Proposal: Greening Certification of Natural Fibres, shall be delivered to the CEO: Cacadu Development Agency and be deposited in the bid/ tender box at Sarah Baartman District Municipality. 32 Govan Mbeki Ave. by 12:00 on the 19 th September 2016, where after, Bids will be opened in public, in committee Room 1, 6 th Floor. Late, telephonic, faxed and electronic bids will not be accepted.

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