Objectives. An uptake economy. indirect job

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1 Request for Quotation Business Plan for a Sustainable Energy SMME Incubator Tuesday, 08 July Background The ethekwini Municipality Energy Strategy 1 highlights private sector in the city of Durban. The Objectives Commercial & Agri business Sector state: the need to develop the sustaina outlined in the Strategy for the ble energy Industrial, 1. Development of the energy efficiency and renewable energy technology sector is encouraged: An uptake of energy efficiency practice and renewable energy technology in industry, contributes to building a profitable sector within the economy. 2. Sustainable job creation: Efficient business is healthy business and the potential for sustainable commercial development within the EMA should be acknowledged and promoted, especially in the emergingg markets such as energy efficiency and renewable energy technology. Under the Cross cutting & Institutional Action Plan 9, the Strategy notes that the ethekwini Municipality needs to: 1. Establish the potential for direct and indirect job creation within EMA, via the enhanced uptake of EE and RE technologies in line with the Energy Strategy targets; 2. Liaise with industry groups and industry associations to establish specific strategies for attracting EEE and RE businesses into the EMA; 3. Promote the EMA as a Centre of Excellence for EEE and RE technology development and publicize this via media events and exhibitions; 4. Encourage job creation within the recycling sector; 1 cuments. aspx

2 5. Develop other promotional strategies, such as university sponsorships for energy technology graduates. Furthermore, a recent analysis of the Green Services and Industries Sector of ethekwini indicated that the energy subsector dominates this sector with over a quarter (28%; 100 firms) of all green services and industries identified in the EMA being energy related. According to this study, it is also notable the vast majority of green services and industries in ethekwini are SMMEs (size determined by employment) and are relatively new (51% under 10 years old). The energy subsector in ethekwini mirrors these general trends with firms on average employing 21 staff and 53% of firms being under 10 years old.. The report further notes that the renewable energy sector in ethekwini is viewed as undeveloped, but there are strong efforts aimed at the establishment and development of this industry. The efforts to support the development of the industry are led by the ethekwini Energy Office, the KwaZulu Natal Sustainable Energy Forum (KSEF), the Department of Economic Development and Tourism, and Trade and Investment KwaZulu Natal. Within this context of skills development and job creation, the ethekwini Municipal Energy Office intends to investigate the potential for supporting Small and Medium and Micro Enterprises (SMME) in the sustainable energy sector in the city. 2 Services Required The Energy Office intends to procure the services of a suitably qualified consultant to develop a Business Plan and Operational Policies for a Sustainable Energy Small and Medium and Micro Enterprises (SMME) Incubator in the ethekwini Municipality. The suggested Scope of Work is outlined below. This scope of work is modified directly from the InfoDev Guidelines Planning an Incubator Basic Training Phase 1: Scoping Study The scoping study will focus on assessing the current needs and opportunities for the Sustainable Energy Incubator in the city. The study will use the ethekwini Energy Strategy, ethekwini Green Services and Industries Study and the reports generated by the KZN Sustainable Energy Forum as a basis. This largely desktop assessment will include: 1. Assessment of SMME Pool: Who are the potential entrepreneurs, what are their needs now and into the future? 2. Assessment of Stakeholder Pool: Who are the key stakeholders nationally and locally (private, public and civil) who can become involved and support the incubator? What support services do they offer? 2 files/resource/infodevdocuments_745.pdf

3 3. Assessment of Market: Where are the gaps in the current sustainable energy market, what opportunities exist to localize goods and services? The deliverable for this phase of the research will be a scoping study report outlining the research findings from the sections listed above. 2.2 Phase 2: Development of a Business Model The second phase of the project will see the development of a business model for the incubator. This phase of the research will investigate what type of incubator will be established and the potential avenues for revenue and profits for the incubator. 1. Assessment of appropriate facilities and services: What facilities and services are possible and appropriate for the incubator? Pre business incubation services to nurture the market for intensive incubation, typically focusing on developing ideas and business plans, often with competitions and in conjunction with universities. Core Business Incubation delivered from one or more business incubator buildings. Outreach Business Incubation incubation support to companies not located in the business incubator but which visit the business incubator from time to time. Virtual Business Incubation purely on line business incubation support, by way of information and a growing set of on line support services, such as business plan reviews, mentoring (once a face to face relationship has been initiated) certain types of advice. Post Business Incubation supporting companies that have graduated in the next phase of their business expansion. 2. Assessment of potential physical location requirements: What physical premises should be considered for the incubator? What communication and business infrastructure requirements should be considered for the incubator? 3. Assessment of financing options. This will include: a. On going government support b. Public Private Partnerships c. Financial self sustainability A business model that considers short, medium and long term financing from different sources should be developed. The deliverable for this phase of the research will be a Business Model for the incubator summarized into a short report.

4 2.3 Phase 3: Business Plan The third phase of the project will see the development of a business plan for the incubator. The business plan will include the following components: 1. Executive Summary 2. Incubator Characterization / Concept a. Vision & Mission Statements b. Objectives (short, medium and longer term) 3. Marketing Plan a. Target businesses b. Their specific needs c. How to assess them d. Pricing e. Occupancy levels 4. Business Model a. Type of Incubator b. Services to be offered 5. Operating Plan a. Facilities b. Entry and exit policies c. Types and level of services d. Relations with other services e. 6. Administration Plan a. Staffing b. Details and Role of the Board (if applicable) c. Resources Required 7. Financial Plans a. Capital budget b. Operational budget c. Cash flow projections d. Profit targets

5 8. Monitoring and Evaluation Plan a. Performance monitoring The deliverable for this phase of the research will be the business plan for the incubator. 2.4 Phase 4: Incubation Support Programme (ISP) Application The final phase of the project will see the submission of the incubator business plan to the Department of Trade and Industry, Incubation Support Programme (ISP). The ISP aims to ensure that small, micro and medium enterprises (SMMEs) graduate into the mainstream economy through the support provided by the incubators. The ISP is one of the support measures to encourage partnerships in which big business assists SMMEs with skills transfer, enterprise development, supplier development and marketing opportunities. 3 The business plan structure in Phase 3 mirrors the requirements for the DTI ISP application. The submission for the ISP includes the following: ISP Balance Sheet ISP Cash flow Statement ISP Income Statement ISP Application Form 3 Deliverables The deliverables for the project will be as follows: 1) Monthly progress reports 2) Scoping Study Assessment 3) Business Model 4) Business Plan 5) ISP Fund Application Each deliverable should be submitted to the ethekwini Municipality for comment and review. 4 Timeframe and Budget This contract will be for a period of 4 months, expected to start at the beginning of August 2013 and terminate at the end of November This contract will be adjudicated in terms of the ethekwini Municipality Supply Chain Management rules and policies and will follow the 80:20 rule. The procurement will be done in terms of the Section 18 of 3

6 approved Supply Chain Management Policy, Procedures for procuring goods or services through written or verbal quotations and formal written price quotations 4 (i.e. formal written price quotations for procurements of a transaction value over R up to R (VAT included)). 5 Adjudication 5.1 Scoring This RFQ will be assessed according to a 2 step process. The first step is a functionality assessment and service providers must score a minimum of 70 points (out of 100) in order to be assessed any further. Step 2 is adjudicated according to price and preferential procurement. The scores for functionality are calculated as follows: Step 1: Functionality Score (100 points) Step 1: Functionality Score 1) Response to the Request for Quotations 25 2) Methodological innovation 25 3) Demonstrated experience in SMME incubators business plan development 25 4) Demonstrated experience in Sustainable Energy Research 25 TOTAL 100 Step 2: Price and Preferential Procurement (100 points) Step 2: Price and Preferential Procurement Score 1) Price including project management, VAT and all other costs 80 2) Preferential Procurement (FPLITE Score) Adjudication Criteria The adjudication criteria are scored as follows: Category Score 0% 0 Poor (40%) 10 Satisfactory (70%) 17.5 Good (90%) 22.5 Very good (100%) 25 Maximum

7 Criteria Description 0% Poor (40%) Satisfactory (70%) Good (90%) Very good (100%) 1) Response to the Request for Quotations No Response 2) Methodological innovation Does the proposal clearly demonstrate good understanding of the brief? All key deliverables are distinctly identified and adequately addressed Is the methodology innovative, detailed to adequately address all elements of the project and the technical approach in addition to stating how each will be executed? No Response The proposal shows limited understanding of the brief and project, has not adequately dealt with the key challenges. The technical approach and the methodology are poor / are unlikely to satisfy the project objectives or requirements. The tenderer has misunderstood certain aspects of the scope of work and does not deal with the critical aspects of it. The brief is well understood, clearly articulated, and key components are adequately addressed. The proposal reflects necessary concepts but has insufficient detail for it to be distinctive. The approach is generic and not tailored to address the specific project objectives and methodology. The approach does not adequately deal with the critical characteristics of the project. The quality of the plan and manner in which risk is managed is too generic. The proposal clearly demonstrates an understanding of the project s vision and the brief. All key components are adequately addressed The approach is specifically tailored to address the specific project objectives and methodology and is sufficiently flexible to accommodate changes that may occur during execution. The quality plan and approach to manage risk etc. is specifically tailored to the critical characteristics of the project. A unique proposal that is strongly aligned to and identifiable with the project. It identifies and deals well with all the brief criteria and has the potential to leave a broader legacy Besides meeting the criterion of a good rating, the important issues are approached in an innovative and efficient way, indicating that the tenderer has outstanding knowledge of stateof the art approaches. The methodology is comprehensive. 3) Demonstrated experience in SMME incubators business plan development Do the service provider team members have relevant and sufficient experience in the creation of business plans for SMME incubators as No Response The team has limited relevant SMME incubator experience in projects of similar nature and has not taken a project of this magnitude. The proposed team is The team has relevant SMME incubator experience in projects of similar nature but has not directly undertaken a project of this type. Key personnel The team has extensive SMME incubator experience in projects of similar nature and has directly undertaken similar projects. The key personnel allocated The tenderer has outstanding SMME incubator experience in projects of similar nature and has taken many such projects. Key personnel allocated to the

8 Criteria Description 0% Poor (40%) Satisfactory (70%) Good (90%) Very good (100%) well as demonstrable experience and expertise in projects of similar nature and scale? weak in important areas and is unlikely to deliver within the specified time frames. allocated to the project have reasonable relevant experience. have extensive relevant experience project have outstanding relevant experience. 4) Demonstrated experience in Sustainable Energy Research Do the service provider team members have relevant and sufficient Sustainable Energy Research experience and expertise in projects of similar nature and scale? No Response The team has limited relevant Sustainable Energy Research experience in projects. The proposed team is weak in important areas and is unlikely to deliver within the specified time frames. The team has relevant Sustainable Energy Research experience in projects of similar nature but has not directly undertaken a project of this type. Key personnel allocated to the project have reasonable relevant experience. The team has extensive Sustainable Energy Research experience in projects of similar nature and has directly undertaken similar projects. The key personnel allocated have extensive relevant experience. The tenderer has outstanding Sustainable Energy Research experience in projects of similar nature and has undertaken numerous projects of this nature. Key personnel allocated to the project have outstanding relevant experience.

9 6 Submission Requirements Quotations needs to be structured in accordance to the below breakdown and include the following information: 1) Chapter 1: Company Background 2) Chapter 2: Response to the brief 3) Chapter 3: Proposed methodology 4) Chapter 4: Team Member s demonstrated experience in SMME incubators business plan development 5) Chapter 5: Team Member s demonstrated experience in Sustainable Energy Research 6) Chapter 6: A detailed cost breakdown / budget for the required work inclusive of: a. Hour rates for team member/s b. Travel and disbursement costs c. VAT d. Total Cost 7) MBD 9 Forms (Anneuxre1): a. Original Declaration of Interest b. Original Declaration of Municipal Fees c. Original Certificate of Independent Bid Determination 8) Certified copy of BBBEE certification 9) Supporting Documents a. CVs of Team Member/s b. Service Providers Valid Tax Clearance Certificate. c. Focused Procurement Lite registration details ( Proposals need to be submitted (preferably by e mail) to: Clinton Jackson E mail: Suite 1, 19 th Floor 75 Dr Langalibalele Dube Street, Durban Tel: Proposals must be received no later than 11 am on 29 July The ethekwini Energy Office does not bind itself to accept the lowest or any quotation, and reserves the right to accept a portion of any quotation, unless the supplier expressly stipulates otherwise in their quotation. The ethekwini Energy Office does not undertake to consider quotations received after the due date and time unless clear evidence of dispatch is available.

10 7 Annexure 1: MBD 9 Forms A. DECLARATION OF INTEREST 1. No bid will be accepted from persons in the service of the state Any person, having a kinship with persons in the service of the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or related to persons in service of the state, it is required that the bidder or their authorised representative declare their position in relation to the evaluating/adjudicating authority. 3. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid Full Name of bidder or his or her representative: 3.2. Identity Number: 3.3. Position occupied in the Company (director, trustee, shareholder 6 ): Company Registration Number: 3.5. Tax Reference Number: 3.6. VAT Registration Number: 3.7. The names of all directors / trustees / shareholders members, their individual identity numbers and state employee numbers must be indicated in paragraph 4 below Are you presently in the service of the state? YES / NO 5 MSCM Regulations: in the service of the state means to be (a) a member of (i) any municipal council; (ii) any provincial legislature; or (iii) the national Assembly or the national Council of provinces; (b) (c) (d) (e) (f) a member of the board of directors of any municipal entity; an official of any municipality or municipal entity; an employee of any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act No.1 of 1999); a member of the accounting authority of any national or provincial public entity; or an employee of Parliament or a provincial legislature. 6 Shareholder means a person who owns shares in the company and is actively involved in the management of the company or business and exercises control over the company.

11 If yes, furnish particulars Have you been in the service of the state for the past twelve months? YES / NO If yes, furnish particulars Do you have any relationship (family, friend, other) with persons in the service of the state and who may be involved with the evaluation and or adjudication of this bid? YES / NO If yes, furnish particulars Are you, aware of any relationship (family, friend, other) between any other bidder and any persons in the service of the state who may be involved with the evaluation and or adjudication of this bid? YES / NO If yes, furnish particulars Are any of the company s directors, trustees, managers, principle shareholders or stakeholders in service of the state? YES / NO If yes, furnish particulars Is any spouse, child or parent of the company s directors, trustees, managers, principle shareholders or stakeholders in service of the state? YES / NO If yes, furnish particulars Do you or any of the directors, trustees, managers, principle shareholders, or stakeholders of this company have any interest in any other related companies or business whether or not they are bidding for this contract? YES / NO If yes, furnish particulars:....

12 4. Full details of directors / trustees / members / shareholders. Full Name Identity Number State Employee Number.. Signature. Capacity.. Date Name of Bidder

13 B. DECLARATION OF MUNICIPAL FEES I/We do hereby declare that the Municipal fees of (company name),are, as at the date of the tender closing, fully paid up, or arrangements have been concluded with the Municipality to pay the said fees : ACCOUNT ELECTRICITY WATER RATES JSB LEVIES OTHER ACCOUNT NUMBER I acknowledge that should it be found that the Municipal fees are not up to date, the Council may take such remedial action as is required, including termination of contract, and any income due to the Contractor shall be utilised to offset any monies due to the Council. Name Designation Signature Date

14 C. CERTIFICATE OF INDEPENDENT BID DETERMINATION 1. This Municipal Bidding Document (MBD) must form part of all bids¹ invited. 2.Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement between, or concerted practice by, firms, or a decision by an association of firms, if it is between parties in a horizontal relationship and if it involves collusive bidding (or bid rigging).² Collusive bidding is a pe se prohibition meaning that it cannot be justified under any grounds. 3.Municipal Supply Regulation 38 (1) prescribes that a supply chain management policy must provide measures for the combating of abuse of the supply chain management system, and must enable the accounting officer, among others, to: a. take all reasonable steps to prevent such abuse; b. reject the bid of any bidder if that bidder or any of its directors has abused the supply chain management system of the municipality or municipal entity or has committed any improper conduct in relation to such system; and c. cancel a contract awarded to a person if the person committed any corrupt or fraudulent act during the bidding process or the execution of the contract. 4.This MBD serves as a certificate of declaration that would be used by institutions to ensure that, when bids are considered, reasonable steps are taken to prevent any form of bid rigging. 5.In order to give effect to the above, the attached Certificate of Bid Determination (MBD 9) must be completed and submitted with the bid: ¹ Includes price quotations, advertised competitive bids, limited bids and proposals. ² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete.

15 MBD 9 CERTIFICATE OF INDEPENDENT BID DETERMINATION I, the undersigned, in submitting the accompanying bid: (Bid Number and Description) in response to the invitation for the bid made by: (Name of Municipality / Municipal Entity) do hereby make the following statements that I certify to be true and complete in every respect: I certify, on behalf of: that: (Name of Bidder) 1. I have read and I understand the contents of this Certificate; 2. I understand that the accompanying bid will be disqualified if this Certificate is found not to be true and complete in every respect; 3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying bid, on behalf of the bidder; 4. Each person whose signature appears on the accompanying bid has been authorized by the bidder to determine the terms of, and to sign, the bid, on behalf of the bidder; 6.For the purposes of this Certificate and the accompanying bid, I understand that the word competitor shall include any individual or organization, other than the bidder, whether or not affiliated with the bidder, who: a) has been requested to submit a bid in response to this bid invitation; b) could potentially submit a bid in response to this bid invitation, based on their qualifications, abilities or experience; and c) provides the same goods and services as the bidder and/or is in the same line of business as the bidder 6. The bidder has arrived at the accompanying bid independently from, and without consultation, communication, agreement or arrangement with any competitor. However communication between partners in a joint venture or consortium³ will not be construed as collusive bidding. 7. In particular, without limiting the generality of paragraphs 6 above, there has been no consultation, communication, agreement or arrangement with any competitor regarding:

16 a) prices; b) geographical area where product or service will be rendered (market allocation) c) methods, factors or formulas used to calculate prices; d) the intention or decision to submit or not to submit, a bid; e) the submission of a bid which does not meet the specifications and conditions of the bid; Or f) bidding with the intention not to win the bid. 8. In addition, there have been no consultations, communications, agreements or arrangements with any competitor regarding the quality, quantity, specifications and conditions or delivery particulars of the products or services to which this bid invitation relates. 9. The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly or indirectly, to any competitor, prior to the date and time of the official bid opening or of the awarding of the contract. 10. I am aware that, in addition and without prejudice to any other remedy provided to combat any restrictive practices related to bids and contracts, bids that are suspicious will be reported to the Competition Commission for investigation and possible imposition of administrative penalties in terms of section 59 of the Competition Act No. 89 of 1998 and or may be reported to the National Prosecuting Authority (NPA) for criminal investigation and or may be restricted from conducting business with the public sector for a period not exceeding ten (10) years in terms of the Prevention and Combating of Corrupt Activities Act No. 12 of 2004 or any other applicable legislation. Signature Date Position Name of Bidder Date ³ Joint venture or Consortium 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.

17 Request for Quotation Form Requesting Unit/Department: Details of Person Requesting Changes: Type of Change: URL where changes must be made: Supporting Documents: Please list them first and attach it to the . [Word, Compressed PDF s, JPEG images, EXCEL, PowerPoint]Please ensure that all PDF s are branded correctly, images are of high resolution and documents are correctly labeled. Please do not label your documents such as Doc1, Draft1, Personal Name or Date. Comments: Please provide detailed comments on the changes you require. Example: Please delete example file 2010 and replace with Example file 2011 Communications Officer: Please note that this form must be sent to your Communications Officer FIRST. Communications Officers will then review Derek Morgan RFQ advert upload Energy Office 1. RFQ Business Plan for a Sustainable Energy SMME Incubator Please upload the following: 1. RFQ Business Plan for a Sustainable Energy SMME Incubator to the Request for quotation notice board. SindyMtolo: Communications Manager MandlaNsele: Deputy Head Thabo Mofokeng: Municipal Spokesperson Gugu Mdlalose Sane Shandu KhayaSengani Sohana Singh Priah Dass Website Change Request Form and Website Guidance

18 the information submitted, highlighttheir name from the list on the right and then submit the form with all supporting documents to Sharen Thumboo (14819). Requested Date of Go-live: Please ensure that work is submitted 8 working hours in advance. o o o 8 working hours 17 working hours [ASAP] For Website Team Only: Date Received: Branding of Documents: Communication Officer Sign Off: Date of Go-live: Date of Reply to Client Department: Website Change Request Form and Website Guidance

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