Introduction. - Name. - Designation. - Division. - Location. - Bonga Ndaba. - Strategic Sourcing & Contracts Manager.

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1 Introduction - Name - Bonga Ndaba - Designation - Strategic Sourcing & Contracts - Division - Procurement - Location - Westville, Durban

2 My Story Today - Engen Procurement - Overview of Structure - Who s who - Commodity Management - Engen s Tender Procedures - Monetary Values - Governance - Engen s Tender Evaluation Methodology - Evaluation Criteria - Where potential Opportunities exist

3 Overview of Structure Chief Procurement Officer Enablement Governance & Strategic Projects Corporate Services Sourcing & Contracts Sourcing & Contracts Sourcing & Contracts Sourcing & Contracts Projects

4 Overview of Portfolio Strategic Sourcing & Contracts Strategic Sourcing & Contracts Strategic Sourcing & Contracts Corporate Services (Zulfa Bardien) (Riaz Kajee) (Bonga Ndaba) (Christy Woolfuth) Sourcing Special Projects Retail Forecourts Road Transport Building Contractors Construction Engineers Consultants Sourcing General/Special Projects Piping fabrication and installation Manufacture and Repairs to Pressure Vessels Super Ultra High Pressure Cleaning Sourcing Special Projects Lubricants Packaging Chemicals Additives Oil & Gas Sourcing Operational Procurement Everything from Stationery to Civil Works Usually associated with Routine Procurement

5 Procedure Purchases Purchases Between Purchases Between Purchases Between Less than R10K R10K R30K 30K 250K R250k - R2m Buyer Utilise CPC and/or Petty Cash Formal Quotation is not Mandatory Buyer 1 x Quote Recorded Only Level 4 BBBEE vendors invited Senior Buyer 3 Written Quotes Only Level 4 BBBEE Preference to BO & BWO HSEQ Senior Buyer 3 Written Quotes Only Level 4 BBBEE Formal Eval Formal Approval Preference to BO & BWO HSEQ

6 Procedure Purchases Above R2m Specialist Strategic Sourcing Specialist Formal RFP Process 3 Written Quotes Only Level 4 and above BBBEE vendors Preference to BO & BWO Must be Technically Pre-Qualified Must be HSEQ Approved Must be Presented to Tender Board Formally Approved by GM / CEO

7 Procedure - Tenders Above R2m (Very Formal) - Adjudicated by formal CFST - Technical SME s, Legal, BBBEE, HSEQ, Procurement, Audit - Evaluation Criteria formally agreed and signed off by CFST - Presented to Tender Board - Approved by GM and/or CEO - Non Conformance - Waiver Procedure which has to be approved by the person with the relevant LOA - Also requires relevant Tender Board Approval

8 Procedure - As a Rule of Thumb - Only vendors that are level 4 and above are invited for Tender - Criteria Includes - HSEQ - BBBEE - Commercial - Technical (Sometimes no Technical Evaluation) - Awards - Not given to the lowest tenderer, but - To the vendor who achieves the best combined score

9 Evaluation Criteria - HSEQ - is a MANDATORY priority for Engen, and as a fundamental value, no other priority may override safety - Standard Criteria in all tenders - Depending on Nature and Complexity of Work - Low Risk = 6 point Questionnaire to be completed - Plumbing, Tiling, Shelving, Painting, HVAC, Refrigeration, etc - High Risk = 12 point Questionnaire to be completed - Pump and Tank, Transport, Building Contractors, Civil Contractors, etc

10 Evaluation Criteria - BBBEE - Not Negotiable (only level 4 and above vendors invited) - Preferential Payment Terms - 7days, 14 days, etc - +51% Black Owned = 2 points - +30% Black Women Owned = 3 points - 5 additional points - Enterprise Development - COMMERCIAL - Price - Financial Viability (Optional) - Adherence to T&C s (Optional)

11 Evaluation Criteria - TECHNICAL - Technically Pre-approved - Then NO Technical Evaluation - Mining Engineering Vendors, Depot Engineering Vendors, Refinery Engineering Vendors, Electrical Engineers - Non Technically Approved - There has to be a NEED - Have to meet Engen s BBBEE requirements. All NEW vendors must be +51% BO and +30% BWO - Have to complete Engen s HSEQ questionnaire relevant to the nature of the work - Have to demonstrate experience, skills, qualification Not necessarily Oil and Gas but even Retail experience

12 Procedure - TECHNICAL CONT - Non Technically Approved Cont - AWARD - Have necessary Equipment - A team consisting of HSEQ and SME s physically go out and assess the company - Once Technically Approved vendor gets invited to partake in tenders - Is based on the best combined score - SAP DATABASE - Only once a tender is won, does the vendor get added to the SAP Database

13 Opportunities - OPPORTUNITIES - Retail Forecourts - Pump and Tank - Forecourt Maintenance - HVAC / Refrigeration - 3rd Party Transporters - Transportation of Fuel & Lubes (no agets/brokers) - Professional Services - Quantity Surveyors - Professional Consulting Services

14 Points to Note - Engen gives priority to Black Owned and Black Women Owned companies in terms of our BBBEE and Procurement Policy know the Codes - Call when you know and have experience in your CORE BUSINESS. - No opportunities available immediately because everything goes via tender on expiry of contract. - Database available from the relevant for potential suppliers and services providers. - High focus on HSE and Quality in the Petroleum Industry. - Each province has a BBBEE and Business Development Executive. KZN contact is Phatheka Mkhiva on (Engen Refinery Nr.). - Enterprise Development handled by Phatheka and Procurement Dept. - Westville Office is & Head Office number is

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