TENDER FOR APPOINTMENT OF A SHORT TERM INSURANCE BROKER FOR A PERIOD OF THREE (3) YEARS

TENDER FOR APPOINTMENT OF A SHORT TERM INSURANCE BROKER FOR A PERIOD OF THREE (3) YEARS TENDER NO. NYDA-2014/01/RSK NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA) 11 BROADWALK AVENUE HALFWAY HOUSE MIDRAND 1685 Contact Name: Mr. Jack Serite Telephone: (011) 651-7000 Email: Jack.Serite@nyda.gov.za Name of Tenderer:.... Total Prices inclusive of Value Added Tax: R.. Amount in Words...... This tender closes at 11:00 AM on the 23 May 2014 at the offices of the NYDA Head Office, 11 Broadwalk Avenue, HALFWAY HOUSE, MIDRAND, 1683. LATE SUBMISSIONS WILL NOT BE ACCEPTED BY THE NYDA National Youth Development Agency (NYDA)

1: Tender Data Conditions of Tender The Conditions of Tender are the General Conditions of Contact issued by the National Treasury. The purpose of the Conditions is to: Draw special attention to certain general conditions applicable to government bids, contracts and orders; and To ensure that bidders are familiar with regard to the rights and obligations of all parties involved in doing business with government. The Standard Conditions of Tender make several references to the Tender Data which specifically applies to this tender. The information shall have precedence in the interpretation of any ambiguity or inconsistency between it and the General Conditions of Contract. Each item of Tender Data given below is cross-referenced to the relevant clause in the standard Conditions of Tender. Clause Number Clause Heading Data / Wording 1.1 The Employer is: The Employer is: National Youth Development Agency (NYDA) 11 Broadwalk Avenue HALFWAY HOUSE 1683 1.2 Tender Documents Documents that Relate to the Tender PART 1.2.1: TENDERING PROCEDURES Tender Notice and Invitation to Tender Tender Information PART 1.2.2: RETURNABLE DOCUMENTS Returnable Documents Returnable Schedules 1.3 Employer s Agent is: PART 1.2.3: AGREEMENT AND CONTRACT DATA SBD 7.2 Contract Form Rendering of Services PART 1.2.4: SCOPE OF WORK Contact Person: Mr Jack Serite 11 Broadwalk Avenue HALFWAY HOUSE 1683 Tel: (011) 651-7000 E-mail: Jack.Serite@nyda.gov.za 1.4. Eligibility Bidders who do not meet the requirements below will be immediately disqualified from the bidding process. 2

(a) Technical proposal (b) SBD 1 - Invitation to bid (c) SBD 3.3 - Pricing Schedule (Professional Service (d) SBD 4 - Declaration of interest (e) SBD 6.1 - Preference Points claim form (f) SBD 8 - Declaration of bidders past supply chain practices (g) SBD 9 - Certificate of independent bid determination (h) Original Valid Tax clearance certificate The National Youth Development Agency reserves the right to reject bids which are non-responsive, including, without limitation, bids which contain the following defects: (a) Late or incomplete bids; (b) Failure to conform to the rules or requirements contained in the Tender; including the proposal format; (c) Proof of collusion among Bidders, in which case all proposals involved in the collusive action will be rejected; and (d) Noncompliance with applicable law, unauthorized additions or deletions, conditional bids, incomplete bids, or irregularities of any kind which may tend to make the bid incomplete, indefinite or ambiguous as to its meaning. Joint Ventures / Consortiums are eligible to submit tenders provided that: (e) Each member of the JV must have a valid Tax Clearance Certificate issued by the South African Revenue Services (SARS); (f) A Joint Venture Agreement is signed by the JV Partners and attached to this tender document; (g) At least one of the JV / Consortium Members attends the Compulsory Briefing Meeting; and (h) A Joint Venture / Consortium must also submit a Joint Venture BBBEE Rating Certificate. 1.5 Clarification Meeting 1.6 Returnable Documents Compulsory Clarification Meeting will take place at the NYDA Head Office Building, 11 Broadwalk Avenue, Halfway House, Midrand on the 13 May 2014 at 10:00 am. Tenderers to submit fully completed returnable documents as stipulated. 3

1.7 Number of copies of tender offers to be submitted to the Employer 1.8 Sealing and Delivery of tender offers The returnable part of the tender offer communicated on paper shall be submitted as an original. No documents are to be retyped. Any tender documents that are retyped will be disqualified. The Employer s address for delivery of tender offers and identification details to be shown on each tender offer package are: Location of tender box: National Youth Development Agency (NYDA) Head Office, 11 Broadwalk Avenue, Halfway House, 1683 1.9 Closing time of tender offers 1.10 Tender offer validity 1.11 Two-Envelope System The closing time for submission of tender offers is as stated in the Tender Notice and Invitation to Tender. The tender offer validity period is 90 days A two-envelope system will be followed. 4

TENDER NO : NYDA2014/01/RSK TENDER DESCRIPTION: APPOINTMENT OF A SHORT TERM INSURANCE BROKER FOR A PERIOD OF THREE (3) YEARS COMPULSORY BRIEFING SESSION Date : 13 May 2014 Venue : 11 Broadwalk Avenue, Halfway House, Midrand Time : 10h00 Terms of Reference for the appointment of a short term insurance broker for a period of three (3) years 5

1. NYDA BACKGROUND National Youth Development Agency (NYDA) is the single largest investment that the South African government has made in support of youth development. It was formed through the merger of Umsobomvu Youth Fund, National Youth Commission and the Provincial Youth Commissions in terms of the National Youth Development Agency Act 54 of 2008; launched on Youth Day June 16 2009. The vision of NYDA is to mainstream and integrate youth development in all organs of state, private sector and civil society for sustainable livelihoods. Its mandate is to: Develop integrated youth development plan and strategy for SA. Guide efforts and facilitate: youth economic participation and empowerment achievement of education and training Initiate programmes aimed at combating crime, substance abuse and social decay amongst youth. Promote interest of youth generally, particularly of young people with disabilities. Monitor and evaluate all youth development interventions. 6

2. Background on the project/requirement In the normal course of business the NYDA encounters numerous risks. The NYDA in mitigating its risks wishes to cost effectively transfer some of it by taking out short term insurance. The NYDA requires the services of a reputable, capable and effective bidder that is a registered member of The South African Insurance Brokers Association (SAIBA), confirm support for the Financial Services Charter and adherence to the King III guidelines, to provide insurance broking services and claims services in all aspects of the NYDA business. The bidder should ensure that the services, which are in line with industry standards, as specified below, are quoted for. 3. Purpose and objectives of this tender To appoint a short term insurance broker for a period of 3 years to provide the following services: 1. Insurance brokering services 2. Claims services for all policies taken through the broker 4. Approach to the assignment The bidders must demonstrate their understanding of the functionality requirements and ensure that all returnable documents are submitted. 7

5. Scope 5.1 Performance specifications: The bidders should be able to provide the following general insurance actions in terms of placement, maintenance and administration of the insurance portfolio: 5.1.1. Internal and external discussions to set renewal and maintenance strategy; 5.1.2 Claim administration and maintenance; 5.1.3 Management reporting taking into consideration identification of bottlenecks claims and tracking problem claims amongst others; 5.1.4 Internal strategy meetings; 5.1.5 Post loss surveys; 5.1.6 Ad hoc adjustments and endorsements on sums insured and declarations to insurers/re-insurers; 5.1.7 Day to day correspondence and queries; 5.1.8 Monitor premium payments and refunds in accordance with accounts and statements; and 5.1.9 Keep NYDA up to date with latest amendments to the Legislation on Insurance through workshops. 5.1.10 Secure online claims handling system 8

5.2 Technical Requirements: A detailed scope of services will relate to the following insurance covers; 5.2.1 Employees Liabilities A cover to the NYDA arising from numerous threats and its management, including security litigation, employment practices, fiduciary or crime related loss, accidental injury or death and fiduciary liabilities: A. Fidelity Guarantee, to cover direct financial loss due to acts of fraud, forgery, alteration, robbery and safe burglary, computer fraud or dishonesty by employees resulting in dishonest personal financial gain. B. Directors, to protect the claims made against the NYDA s directors e.g., if ceases to operate and there are outstanding obligations from third parties. C. Public Liability, to protect the NYDA against claims involving illness, injury death, damages to third party property including but not limited to; defamation, defective workmanship and products. 5.2.2 Assets To cover all tangible property of every description belonging to the NYDA or which the NYDA has any propriety or pecuniary interest against loss or damage caused by fire or allied perils including electronic breakdown (first loss bases) 9

A. Electronic equipment, to cover on electronic business equipment including computers, laptops, licensed software, etc. B. Stock, to cover on goods that forms part of the NYDA business activity. C. Stock in transit, to cover on transportation of stock anywhere in South Africa, offshore, and African countries. D. Motor fleet, fully comprehensive cover on all vehicles owned, hired, leased, borrowed or used by the insured, including vehicles held in trust or in the custody or under control or care of the insured. Third party insurance for vehicles kept on the road, business use in neighbouring countries, out-in- Africa etc. E. Money, a cover on any negotiable instrument including cash cheques, credit card vouchers etc. F. Building cover, SASRIA, property terrorism and sabotage, fire, explosion, earthquake, power surges, alterations and additions etc. 5.2.3 Business Interruption A cover for financial loss suffered following interruptions of the NYDA business. This should include but not limited to, fixed expenses, operating expenses, additional working expenses and SASRIA. 5.2.4 Travel A cover for an employee of the NYDA whilst travelling on international journeys for business incurs Medical and Related Expenses as a result of illness or injury or liability. 10

5.2.5 Events A cover that indemnifies the NYDA for damages which the event organizer (NYDA), shall become legally liable to pay consequent upon accidental death of or bodily injury to or illness of any person or accidental loss of or physical damage to occurring within the territorial limits during the period of Insurance in the course of or in connection with the event. 5.2.6 Professional Liability All Damages resulting from any Claim for any Breach of Duty of the Insured. 5.2.7 Project Specification Insurance - Grant Program (Commercial Insurance Policy) - Foreign Exchange Students (interglobal health care plan) General The scope covers portfolios identified at this stage and does not necessarily limit the scope to this. It is expected that the bidder advice the NYDA of any other relevant portfolios and any other important information not covered below. 11

Bidders are encouraged to suggest additional improvements and value adds related to the rendering of corporate short term insurance. Details of value adds must be submitted as part of the responses to the bid and indicated as such. 6. Proposal content The proposal should cover the following contents: An indication as to understanding of the performance specifications and the bidders ability to provide the required services. In addition the bidder must demonstrate its experience and knowledge in providing the technical requirements. Specifically the bidder must provide the following information: Provide information that will assist the NYDA to assess the bidder s capabilities, capacity, competitive advantages, etc, for instance, in-house skills, previous experience, etc. The bidder must clearly demonstrate its ability to provide excellent service that will ensure a successful trouble-free insurance broking services. Provide proof that the bidder has experience and the necessary skill to provide the required services, including a detailed reference list including previous projects completed; a list of current and past clients (in the public and private sector) along with the names and telephone numbers of contact persons, the value of and the number of years that services were provided for. 12

Provide the names and qualifications of the bidder s staff members who would be on this project. Kindly attach the detailed resumes. Provide names and qualifications of any outside specialists and consultants, if applicable, who would assist bidder on various aspects of the functions to be performed. The bidder should clearly demonstrate that it has the necessary resources to be able to render the services. Review and advice the NYDA s institutional insurance policy. The ability to provide reports to the Corporation on claims and recoveries. 6.8 REQUIRED INFORMATION 6.8.1 Technical 6.8.1.1 Proof that contracts/ service level agreements exist between yourselves, insurance companies and re- insurers/co-insurers, attorneys for third party recoveries 6.8.1.2 Confirmation of Professional Indemnity Cover / Errors and Omissions policy minimum of R50 million (required after stage 3) 6.8.1.3 The number of law suits claims (Professional Indemnity / Errors and Omissions) that have been lodged by clients. 6.8.1.4 State how the bidder complies with Protection of Personal Information Act, no. 4 0f 2013. 13

7. Submission Requirements 7.1 One hardcopy must be the original submission, clearly marked "Original" and four (5) copied versions of the original. 7.2 Bidders should take particular care to ensure that there are no discrepancies on hardcopy bids of the proposed solution. NYDA reserves the right to reject any bids if there are discrepancies. 7.3 Each individual envelope must be clearly marked with the following information: 7.4 Description of the Tender: 7.5 Tender Number: 7.6 ORIGINAL or COPY 1 or COPY 2 etc.; and 7.7 Return address label indicating the name and address of the bidder. 7.8 Bids that are faxed, sent via telex, and/ or electronic mail delivery will not be accepted. 7.9 All bids received by NYDA will become the property of the NYDA and will not be returned to the bidder. 7.10 The bids must be inserted into the TENDER BOX available at the Reception Area of NYDA Head Office, 11 Broadwalk Avenue, Halfway House in Midrand, Johannesburg. No electronic submission should be made. Only hard copies marked for attention Mr Jack Serite. 14

7.11 No unlawful use of these submitted documents shall be permitted by NYDA, including copy right and intellectual rights protection. Unsuccessful bids will be informed in writing when the process is concluded. 7.12 A bid will be considered late if received after the specified date and time. Bidders are therefore strongly advised to ensure that bids be despatched allowing enough time for any unforeseen events that delay the delivery of the bid. 8. Communications 8.1 Contact person for technical enquiries regarding the bid: Mr S Hargovan Title : General Manager : Risk and Internal Audit National Youth Development Agency Email Address: sanjay.hargovan@nyda.gov.za 8.2 Contact person for enquiries regarding the bid document: Mr Jack Serite Procurement Officer-Supply Chain Management Unit National Youth Development Agency Email: jack.serite@nyda.gov.za All clarifications or enquiries must be made in writing at least 48 hours before the closing date of the bid. Telephonic requests for clarification will not be accepted. 15

9. Evaluation/Adjudication of Proposal Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000) and the associated Notices (notably No 501 and 502-which appear on Gazette Number 34350), which stipulate a 90/10 preference point system for acquisition of services, works or goods with a Rand value above R1 million should apply. Bids will be evaluated in three (3) phases: Compliance/eligibility Technical/Functionality 16

The top 3 bidders from this stage (having met the minimum threshold of 60 points) will be requested to provide quotations for insurance. Bidders have the option on quoting commission per cover taken and/or charging an annual management fee Price and BBBEE The preferred bidder will be required to provide proof of professional indemnity cover of R50M within 5 working days of being notified as the preferred bidder. Should this not be provided the bidder will be disqualified and the second preferred bidder will be ask to provide such documentation Bidders who do not meet the requirements below will be immediately disqualified from the bidding process. 17

9.1 Compliance/Eligibility Bidders who do not meet the requirements below will be immediately disqualified from the bidding process. Item Description 1 Technical proposal 2 All returnable documents - SBD 1 Invitation to Bid - SBD 3.3 Pricing Schedule (Professional Services) - SBD 4 Declaration of Interest - SBD 6.1 Preference points claim form - SBD 7.2 Contract form rendering of services - SBD 8 Declaration of past supply chain practices - SBD 9 - Certificate of independent bid determination - Original Valid Tax Clearance Certificate 3 Proof of registration with the Financial Services Board 4 Proof of membership with the South African Insurance Brokers Association 5 Membership to the South African Financial Services Intermediaries Association of key personnel 18

6 Proof of agency agreements with underwriters( if these cannot be provided, a letter from the underwriters confirming an agreement is in place must be provided) 7 Attended compulsory briefing session 8 Latest Audited Annual Financial Statements 9.2 Technical/ Functionality Evaluation The evaluation of the functionality of the bids will be assessed as per the criteria contained in the table below: Evaluation of Functionality CRITERIA WEIGHT VALUE SCORE S 1 Demonstrate the understanding and methodology 15 to be followed for the performance specifications No explanation provided ( value = 0) Demonstrate limited understanding of performance specifications ( value =1) Demonstrate limited understanding of performance specifications and methodology 19

to be followed ( value 2) Demonstrate understanding of performance specifications and adequate methodology to be followed ( value =3) Demonstrate exceptional understanding of performance specifications and methodology to be followed (value = 4) Value added services to performance specifications and methodology thereof (5) 2 Claims handling services 15 No response (value = 0) No specific individual assigned individual ( value = 1) Assigned individual with quarterly reports ( value = 2 ) Assigned individual with monthly reports ( value = 3) Assigned individual with monthly reports, 30 day turnaround time for assets ( value = 4) Assigned individual, monthly reports, 30 day 20

turnaround time for assets and quarterly meeting to resolve queries ( value = 5) Evaluation of Functionality CRITERIA WEIGHT VALUE SCORE S 3 Secure on line claims handling system 10 No secure on line solution ( value =0) Secure on line solution with no explanation of functionality ( value =1) Secure on line solution explaining the functionality (value = 2) Secure online solution explaining the functionality with add on functionalities ( value 3) Secure online solution explaining the functionality with reporting functionality ( value 4) Secure online solution explaining the functionality with reporting functionality and interactive (value = 5) 21

4 Bidders experience in brokering services in general 10 as per the performance specifications : No information (value=0) less than 2 years experience (value=1) 2 5 years experience (value=2) 5-10 years experience (value=3) 10-15 years experience (value=4) More than 15 years experience (value=5) 5 Bidders experience in brokering services for 15 employee liabilities and other as defined in the technical requirements No information (value=0) less than 2 years experience (value=1) 2 5 years experience (value=2) 5-10 years experience (value=3) 10-15 years experience (value=4) More than 15 years experience (value=5) 22

Evaluation of Functionality CRITERIA WEIGHT VALUE SCORE S 6 3 References provided from existing and past 5 clients No references ( value = 0) 1-2 reference provided ( value = 1) 3 references provided ( value = 2) 3 references with contact details ( value =3) 3 references provided with contact details and letters of recommendation ( value = 4) More than 3 references provided with contact details and letters of recommendation 7 Experience of key personnel assigned to the service 10 of assets, business interruption and travel as per the technical requirements ( excluding claims administrator ) No information provided (value = 0) 23

Less than 3 years experience ( value = 1) 3 5 years experience ( value = 2) 5-8 years experience ( value = 3) 8-12 years experience (value = 4) More than 12 years experience ( value = 5) 8 Experience of key personnel assigned to all services 10 Excluding assets, business interruption and travel as per the technical requirements ( excluding claims administrator ) No information provided (value = 0) Less than 3 years experience ( value = 1) 3 5 years experience ( value = 2) 5-8 years experience ( value = 3) 8-12 years experience (value = 4) More than 12 years experience ( value = 5) Evaluation of Functionality CRITERIA WEIGHT VALUE SCORE S 9 Experience of claims administrator 10 24

No information provided (value = 0) Less than 1 years experience ( value = 1) 1 2 years experience ( value = 2) 2-4 years experience ( value = 3) 4-6 years experience (value = 4) More than 6 years experience ( value = 5) TOTALS 100 Points Minimum Threshold for technical 60 Functionality will be evaluated using the following formula: Pf = (So/Ms) x Ap Where: a. Pf is the percentage scored for functionality by bid under consideration. b. So is the total score of the bid in question. c. Ap is the percentage allocated for functionality. d. Ms is the maximum score possible. Any proposal not meeting a minimum threshold of 60 points on functionality will not be considered further evaluation on price. 25

9.3 Allocation of points for Price The bid with the lowest acceptable price will receive the maximum points allocated for price; [90points]. The other bidders will receive proportionately lesser points based on the following formula: Ps = 90(1-(Pt-Pmin)/Pmin) Where: Ps = Points scored for comparative price of bid or offer under consideration; Pt = Comparative price of bid or offer under consideration; and Pmin = Comparative price of lowest acceptable bid or offer. 9.4 Allocation for points for B-BBEE Contribution The allocation of points for B-BBEE contribution will be as per the table below: B-BBEE Status Level of Contributor Number of Points 1 10 2 9 3 8 4 5 26

5 4 6 3 7 2 8 1 Non-Compliant Contributor 0 The points scored by a bidder in respect of the B-BBEE will be added to the points score for price in order to get the final points. Before a bid is adjudicated or at any time, it may be required from a bidder to substantiate claims it has made with regard to preference. Points will be rounded off to the nearest 2 decimals. In the event that two or more bids have scored equal total points, the contract will be awarded to the bidder scoring the highest number of points for the specified goals or B- BBEE contribution. 10 SPECIAL CONDITIONS 10.1 NYDA reserves a right not to accept any of the bids submitted. 10.2 NYDA reserves the right to withdraw or amend terms of reference/specifications by notice in writing to all parties who have received the terms of reference/specifications prior to the closing date. 10.3 The cost of preparing the bids will not be reimbursed. 27

11 REVIEW PROCESS 11.1 In order to evaluate and adjudicate bids effectively, it is imperative that bidders submit responsive bids. To ensure a bid will be regarded as responsive it is imperative to comply with all conditions pertaining to the bid and to complete all the mandatory fields and questionnaires. 11.2 Documents submitted on time by bidders shall not be returned and shall remain the property of the NYDA. 11.3 All bids duly lodged will be evaluated in accordance with the evaluation criteria. 11.4 NYDA may require presentations from short-listed bidders as part of the bid process. 12 REASONS FOR REJECTION 12.1 NYDA reserves the right to return late bids unopened. 12.2 Bidders shall not contact NYDA on any matter pertaining to their bid from the time the bid is closed to the time the bid has been adjudicated. Any effort by a bidder to influence the bid evaluation, bid comparisons or bid award decisions in any matter, may result in rejection of the bid concerned. 28

12.3 NYDA shall reject a submission if the bidder has committed a proven corrupt of fraudulent act in competing for a particular contract, restricted or listed on the National Treasury register for tender defaulters. 12.4 NYDA may disregard any submission if that bidder, or any of its Directors: 12.4.1 Have abused the Supply Chain Management (SCM) of any State Institution. 12.4.2 Have committed proven fraud or any other improper conduct in relation to such system. 12.4.3 Have failed to perform in any previous contract and the proof thereof exists. 12.4.4 Is restricted from doing business with the public sector if such a supplier obtained preferences fraudulently or if such supplier failed to perform on a contract based on specific goals. 12.5 NYDA reserves the right to contact references during the evaluation and adjudication process to obtain information. 29

INVITATION TO BID SBD 1 YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE (NAME OF DEPARTMENT/PUBLIC ENTITY) BID NUMBER: 2014/01/RSK CLOSING DATE: 23 May 2014 CLOSING TIME: 11:00 DESCRIPTION Tender No. 2014/01/RSK for appointment of short term insurance broker for a period of three years. The successful bidder will be required to fill in and sign a written Contract Form (SBD 7). BID DOCUMENTS MAY BE POSTED TO:... OR DEPOSITED IN THE BID BOX SITUATED AT (STREET ADDRESS) NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA) 11 BROADWALK AVENUE HALFWAY HOUSE MIDRAND 1685 Bidders should ensure that bids are delivered timeously to the correct address. If the bid is late, it will not be accepted for consideration. The bid box is generally open 24 hours a day, 7 days a week. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS (NOT TO BE RE-TYPED) THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT THE FOLLOWING PARTICULARS MUST BE FURNISHED (FAILURE TO DO SO MAY RESULT IN YOUR BID BEING DISQUALIFIED) NAME OF BIDDER POSTAL ADDRESS STREET ADDRESS TELEPHONE NUMBER CELLPHONE NUMBER FACSIMILE NUMBER E-MAIL ADDRESS VAT REGISTRATION NUMBER. CODE NUMBER.. CODE.NUMBER. HAS AN ORIGINAL AND VALID TAX CLEARANCE CERTIFICATE BEEN SUBMITTED? (SBD 2) YES or NO HAS A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE BEEN SUBMITTED? (SBD 6.1) YES or NO IF YES, WHO WAS THE CERTIFICATE ISSUED BY? AN ACCOUNTING OFICER AS CONTEMPLATED IN THE CLOSE CORPORATION ACT (CCA)..... A VERIFICATION AGENCY ACCREDITED BY THE SOUTH AFRICAN ACCREDITATION SYSTEM (SANAS); OR. A REGISTERED AUDITOR..... [TICK APPLICABLE BOX] 1

(A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE) ARE YOU THE ACCREDITED REPRESENTATIVE IN SOUTH AFRICA FOR THE GOODS / SERVICES / WORKS OFFERED? NO YES or [IF YES ENCLOSE PROOF] SIGNATURE OF BIDDER DATE.... CAPACITY UNDER WHICH THIS BID IS SIGNED TOTAL BID PRICE TOTAL NUMBER OF ITEMS OFFERED ANY ENQUIRIES REGARDING THE BIDDING PROCEDURE MAY BE DIRECTED TO: Department: National Youth Development Agency Contact Person: Mr Jack Serite Tel: 011 651 7000 Fax: N/A E-mail address:jack.serite@nyda.gov.za ANY ENQUIRIES REGARDING TECHNICAL INFORMATION MAY BE DIRECTED TO: Contact Person: Sanjay Hargovan Tel: 011 651 7000 Fax: N/A E-mail address:sanjay.hargovan@nyda.gov.za 2

SBD 2 TAX CLEARANCE CERTIFICATE REQUIREMENTS It is a condition of bid that the taxes of the successful bidder must be in order, or that satisfactory arrangements have been made with South African Revenue Service (SARS) to meet the bidder s tax obligations. 1 In order to meet this requirement bidders are required to complete in full the attached form TCC 001 Application for a Tax Clearance Certificate and submit it to any SARS branch office nationally. The Tax Clearance Certificate Requirements are also applicable to foreign bidders / individuals who wish to submit bids. 2 SARS will then furnish the bidder with a Tax Clearance Certificate that will be valid for a period of 1 (one) year from the date of approval. 3 The original Tax Clearance Certificate must be submitted together with the bid. Failure to submit the original and valid Tax Clearance Certificate will result in the invalidation of the bid. Certified copies of the Tax Clearance Certificate will not be acceptable. 4 In bids where Consortia / Joint Ventures / Sub-contractors are involved, each party must submit a separate Tax Clearance Certificate. 5 Copies of the TCC 001 Application for a Tax Clearance Certificate form are available from any SARS branch office nationally or on the website www.sars.gov.za. 6 Applications for the Tax Clearance Certificates may also be made via efiling. In order to use this provision, taxpayers will need to register with SARS as efilers through the website www.sars.gov.za. Jeyrel:\Mdk416-SBD2 tax clearance

SBD 4 DECLARATION OF INTEREST 1. Any legal person, including persons employed by the state¹, or persons having a kinship with persons employed by the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the state, or to persons connected with or related to them, it is required that the bidder or his/her authorised representative declare his/her position in relation to the evaluating/adjudicating authority where- - the bidder is employed by the state; and/or - the legal person on whose behalf the bidding document is signed, has a relationship with persons/a person who are/is involved in the evaluation and or adjudication of the bid(s), or where it is known that such a relationship exists between the person or persons for or on whose behalf the declarant acts and persons who are involved with the evaluation and or adjudication of the bid. 2. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid. 2.1 Full Name of bidder or his or her representative:. 2.2 Identity Number: 2.3 Position occupied in the Company (director, trustee, shareholder²):.. 2.4 Company Registration Number:... 2.5 Tax Reference Number:. 2.6 VAT Registration Number:... 2.6.1 The names of all directors / trustees / shareholders / members, their individual identity numbers, tax reference numbers and, if applicable, employee / persal numbers must be indicated in paragraph 3 below. ¹ State means (a) 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); (b) any municipality or municipal entity; (c) provincial legislature; (d) national Assembly or the national Council of provinces; or (e) Parliament. ² Shareholder means a person who owns shares in the company and is actively involved in the management of the enterprise or business and exercises control over the enterprise.

2.7 Are you or any person connected with the bidder YES / NO presently employed by the state? 2.7.1 If so, furnish the following particulars: Name of person / director / trustee / shareholder/ member: Name of state institution at which you or the person connected to the bidder is employed : Position occupied in the state institution:... Any other particulars: 2.7.2 If you are presently employed by the state, did you obtain YES / NO the appropriate authority to undertake remunerative work outside employment in the public sector? 2.7.2.1 If yes, did you attached proof of such authority to the bid YES / NO document? (Note: Failure to submit proof of such authority, where applicable, may result in the disqualification of the bid. 2.7.2.2 If no, furnish reasons for non-submission of such proof:... 2.8 Did you or your spouse, or any of the company s directors / YES / NO trustees / shareholders / members or their spouses conduct business with the state in the previous twelve months? 2.8.1 If so, furnish particulars:....... 2.9 Do you, or any person connected with the bidder, have YES / NO any relationship (family, friend, other) with a person employed by the state and who may be involved with the evaluation and or adjudication of this bid?

2.9.1If so, furnish particulars....... 2.10 Are you, or any person connected with the bidder, YES/NO aware of any relationship (family, friend, other) between any other bidder and any person employed by the state who may be involved with the evaluation and or adjudication of this bid? 2.10.1 If so, furnish particulars. 2.11 Do you or any of the directors / trustees / shareholders / members YES/NO of the company have any interest in any other related companies whether or not they are bidding for this contract? 2.11.1 If so, furnish particulars:... 3 Full details of directors / trustees / members / shareholders. Full Name Identity Number Personal Tax Reference Number State Employee Number / Persal Number

4 DECLARATION I, THE UNDERSIGNED (NAME) CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT. I ACCEPT THAT THE STATE MAY REJECT THE BID OR ACT AGAINST ME IN TERMS OF PARAGRAPH 23 OF THE GENERAL CONDITIONS OF CONTRACT SHOULD THIS DECLARATION PROVE TO BE FALSE... Signature. Position.. Date Name of bidder May 2011

SBD 6.1 PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011 This preference form must form part of all bids 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 NB: BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011. 1. GENERAL CONDITIONS 1.1 The following preference point systems are applicable to all bids: - the 80/20 system for requirements with a Rand value of up to R1 000 000 (all applicable taxes included); and - the 90/10 system for requirements with a Rand value above R1 000 000 (all applicable taxes included). 1.2 The value of this bid is estimated to exceed/not exceed R1 000 000 (all applicable taxes included) and therefore the system shall be applicable. 1.3 Preference points for this bid shall be awarded for: (a) (b) Price; and B-BBEE Status Level of Contribution. 1.3.1 The maximum points for this bid are allocated as follows: POINTS 1.3.1.1 PRICE.. 1.3.1.2 B-BBEE STATUS LEVEL OF CONTRIBUTION... Total points for Price and B-BBEE must not exceed 100 1.4 Failure on the part of a bidder 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 bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed. 1.5. The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser.

2 2. DEFINITIONS 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 bid 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 bidding 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 bid by an organ of state; 2.9 EME means any enterprise with an annual total revenue of R5 million or less. 2.10 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 bid 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 bidder; 2.12 non-firm prices means all prices other than firm prices; 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 bid 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 3. ADJUDICATION USING A POINT SYSTEM 3.1 The bidder 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;. 3.3 Points scored must be rounded off to the nearest 2 decimal places. 3.4 In the event that two or more bids have scored equal total points, the successful bid 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 bids have scored equal points including equal preference points for B-BBEE, the successful bid must be the one scoring the highest score for functionality. 3.6 Should two or more bids be equal in all respects, the award shall be decided by the drawing of lots. 4. POINTS AWARDED FOR PRICE 4.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS A maximum of 80 or 90 points is allocated for price on the following basis: 80/20 or 90/10 Where Pt P min 801 P min Ps or Pt P min Ps 901 P min Ps = Points scored for comparative price of bid under consideration Pt = Comparative price of bid under consideration Pmin = Comparative price of lowest acceptable bid 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 bidder for attaining the B-BBEE status level of contribution in accordance with the table below:

4 B-BBEE Status Level of Contributor Number of points (90/10 system) Number of points (80/20 system) 1 10 20 2 9 18 3 8 16 4 5 12 5 4 8 6 3 6 7 2 4 8 1 2 Non-compliant contributor 0 0 5.2 Bidders 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 Bidders 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 bid. 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 bid documents that such a bidder 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 bidder qualifies for, unless the intended subcontractor 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.

6. BID DECLARATION 5 6.1 Bidders 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 1.3.1.2 AND 5.1 7.1 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) 8.1.1 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... : 9.2 VAT registration number :... 9.3 Company registration number. : 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............. 9.6 COMPANY CLASSIFICATION Manufacturer Supplier Professional service provider

Other service providers, e.g. transporter, etc. [TICK APPLICABLE BOX] 6 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) (iv) 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; 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 bidding 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 bidder 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 BIDDER(S) 2. DATE:.. ADDRESS:....

DECLARATION OF BIDDER S PAST SUPPLY CHAIN MANAGEMENT PRACTICES 1 This Standard Bidding Document must form part of all bids invited. SBD 8 2 It serves as a declaration to be used by institutions in ensuring that when goods and services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system. 3 The bid of any bidder may be disregarded if that bidder, or any of its directors have- a. abused the institution s supply chain management system; b. committed fraud or any other improper conduct in relation to such system; or c. failed to perform on any previous contract. 4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid. Item Question Yes No 4.1 Is the bidder or any of its directors listed on the National Treasury s Database of Restricted Suppliers as companies or persons prohibited from doing business with the public sector? (Companies or persons who are listed on this Database were informed in writing of this restriction by the Accounting Officer/Authority of the institution that imposed the restriction after the audi alteram partem rule was applied). The Database of Restricted Suppliers now resides on the National Treasury s website(www.treasury.gov.za) and can be accessed by clicking on its link at the bottom of the home page. 4.1.1 If so, furnish particulars: Yes No 4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)? The Register for Tender Defaulters can be accessed on the National Treasury s website (www.treasury.gov.za) by clicking on its link at the bottom of the home page. 4.2.1 If so, furnish particulars: Yes No 4.3 Was the bidder or any of its directors convicted by a court of law (including a court outside of the Republic of South Africa) for fraud or corruption during the past five years? 4.3.1 If so, furnish particulars: Yes No

4.4 Was any contract between the bidder and any organ of state terminated during the past five years on account of failure to perform on or comply with the contract? 4.4.1 If so, furnish particulars: Yes No CERTIFICATION SBD 8 I, THE UNDERSIGNED (FULL NAME) CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS TRUE AND CORRECT. I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.... Signature. Position.. Date.. Name of Bidder Js365bW

CERTIFICATE OF INDEPENDENT BID DETERMINATION SBD 9 1 This Standard Bidding Document (SBD) 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 Treasury Regulation 16A9 prescribes that accounting officers and accounting authorities must take all reasonable steps to prevent abuse of the supply chain management system and authorizes accounting officers and accounting authorities to: a. disregard the bid of any bidder if that bidder, or any of its directors have abused the institution s supply chain management system and or committed fraud or any other improper conduct in relation to such system. b. cancel a contract awarded to a supplier of goods and services if the supplier committed any corrupt or fraudulent act during the bidding process or the execution of that contract. 4 This SBD 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 (SBD 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. 1