Request for Proposal (RFP) Risk Management and Short Term Insurance Broking Services. RFP Number: 485/12/12/2014

Request for Proposal (RFP) Risk Management and Short Term Insurance Broking Services RFP Number: 485/12/12/2014 Date of Issue 23 November 2014 Compulsory Briefing Session Closing Date and Time Place 1 December 2014 at Building 22 Central Station at 10:00 12:00 12 December 2014 at 12:00 (Noon) Tender box, CSIR Main Reception, Gate 3 ( North Gate) Enquiries Strategic Procurement Unit E-mail: tender@csir.co.za RFP Page 1 of 19

Introduction The Council for Scientific and Industrial Research (CSIR) is one of the leading scientific research and technology development organisations in Africa. In partnership with national and international research and technology institutions, CSIR undertakes directed and multidisciplinary research and technology innovation that contributes to the improvement of the quality of life of South Africans. The CSIR s main site is in Pretoria while it is represented in other provinces of South Africa through regional offices. The CSIR is committed to supporting innovation in South Africa to improve national competitiveness in the global economy. Science and technology services and solutions are provided in support of various stakeholders, and opportunities are identified where new technologies can be further developed and exploited in the private and public sectors for commercial and social benefit. RFP Overview The CSIR herewith invites brokers to submit a proposal to be reviewed for a possible threeyear agreement for broker, risk management and short term insurance services for the CSIR. The CSIR is seeking the services of a qualified service provider that is experienced in the provision of risk management and short term insurance services for an organisation similar to the CSIR. Section 1 Covers the general terms and conditions applicable to RFP s as laid down by the CSIR. Section 2 Covers the scope and requirements for this RFP. RFP Page 2 of 19

SECTION 1: GENERAL TERMS AND CONDITIONS 1. Proprietary Information The CSIR considers this Request for Proposal (RFP) and all related information, either written or verbal, which is provided to the respondent, to be proprietary to CSIR. It shall be kept confidential by the respondent and its officers, employees, agents and representatives. The respondent shall not disclose, publish, or advertise this specification or related information in part or as a whole to any third party without the prior written consent of the CSIR. This applies regardless of whether the recipient of this RFP responds with a proposal or not. The CSIR reserves the right to require the return or destruction of all documents supplied or produced during the proposal process, including extracts, summaries and related notes. Unauthorised disclosure of the RFP or its contents or failure to observe other specific requirements contained herein may result in disqualification from further consideration in addition to any other remedies the CSIR may have under law or equity. The CSIR will maintain strict confidentiality in receipt of and possession of proposal responses including clarifications and other submissions during the RFP process. All material submitted in response to the RFP shall become the property of the CSIR and may only be returned at CSIR discretion. The CSIR has the right to use any or all of the information presented in any reply to the RFP. Selection or rejection of any proposal does not affect this right. The successful respondent(s) shall not use the contract or CSIR name for promotional purposes, without seeking the prior approval from the CSIR. The provisions of the above paragraph will also apply to any subcontractors and/or joint venture partners that respondents may propose in proposals. RFP Page 3 of 19

2. Disclaimers The CSIR has produced this RFP in good faith. However, the CSIR, its agents and employees do not warrant its accuracy or completeness. To the extent that the CSIR is permitted by law, the CSIR will not be liable for any claim whatsoever and howsoever arising (including, without limitation, any claim in contract, negligence or otherwise) for any incorrect or misleading information contained in this RFP due to any misinterpretation of this RFP. This RFP is a request for proposals only and not an offer document; answers to it must not be construed as acceptance of an offer or imply the existence of a contract between the parties. By submission of its proposal, respondents shall be deemed to have satisfied themselves with and to have accepted the CSIR general terms & conditions of RFP. The CSIR makes no representation, warranty, assurance, guarantee or endorsements to the respondent(s) concerning the RFP, whether with regard to its accuracy, completeness or otherwise and the CSIR shall have no liability towards the respondent or any other party in connection therewith. 3. Cost of Proposal Respondents are expected to fully acquaint themselves with the conditions, requirements and specifications of this RFP before submitting proposals. Each respondent assumes all risks for resource commitment and expenses, direct or indirect, of proposal preparation and participation throughout the RFP process. The CSIR is not responsible directly or indirectly for any costs incurred by respondents. 4. Verification of Documents Respondents cannot secure relief on the grounds of mistakes. Respondents shall check the numbers of the pages of this RFP to satisfy themselves that none are missing or duplicated. If any doubt exists as to the full intent and meaning of any description, or if this RFP contains any obvious errors, the respondent shall notify the CSIR at once for rectification. No liability whatsoever will be admitted in respect of errors in any application due to the aforementioned aspects. RFP Page 4 of 19

5. Changes to the RFP The CSIR reserves the right to modify these and other RFP requirements. Any changes or modifications to the RFP shall be made available in an electronic format by the CSIR. Hard copies will also be made available for collection. Respondents will be informed of any changes or modifications and shall be responsible for the collection of such documents from the CSIR. The CSIR at its sole discretion, reserves the right to: Request additional information from all or any respondent. Reject or accept any RFP responses without disclosing the reason therefore. Enter into further negotiations with all or any of the respondents. Extend the RFP process, including calling for new RFPs. 6. Evaluation Process and Criteria 6.1. Evaluation of Proposals All proposals will be evaluated by an evaluation team for functionality, price and B-BBEE. Based on the results of the evaluation process, the CSIR will approve the awarding of the contract to successful tenderers. A two-phase evaluation process will be followed. The first phase includes functionality, local production and content. The second phase includes the evaluation of price and B-BBEE status. Pricing proposals will only be considered after functionality phase has been adjudicated and accepted. Only proposals that achieved a minimum qualification score for functionality will be evaluated further using the preference points system. The 90/10 preference point system will be used where 90 points will be dedicated to price and 10 points to B-BBEE status. If all tenders received are equal to, or below R1m, the proposal will be cancelled and re-issued. 6.2. Exclusion Criteria Proposed Service Team Credentials, experience and qualifications including proof of FSB Regulatory Examination (FAIS) Certificate of the team members that will be involved in the day to day servicing of the CSIR portfolio must be included in the quotation. Failure to do so will result in the proposal not being considered. RFP Page 5 of 19

Proof of all qualifications, list of projects and client references must accompany the quotation. Failure to do so may result in the quotation not being considered favourably. 6.3. Elimination Criteria Submission after the deadline. No proof of insurance industry membership and FSP licence. No Valid Tax Clearance Certificate. No completed CSIR supplier registration forms or valid CSIR vendor number. No B-BBEE certificate or proof of annual turnover signed off by bookkeeper or auditor. Proposals with a technical specification score of less than 70% overall and within each criteria. 6.4. The functionality evaluation criteria will be based on the following: Criteria Weight Experience and track record 40 Insurance Programme Structure 35 Completeness of proposal 10 Proof of Professional Indemnity and Commercial Crime cover Global/Geographical reach and footprint 10 5 7. Venue for Proposal Submission All proposals must be submitted at: CSIR GATE 03 - Main Reception Area (in the Tender box) at the following address: Council for Scientific and Industrial Research (CSIR) Meiring Naudé Road Brummeria RFP Page 6 of 19

Pretoria 8. Briefing Session Details A compulsory briefing session will be held on 1 December 2014 at the venue below. Attendance at the briefing session is mandatory. The purpose of the briefing session is to clarify issues with this RFP. Answers given by CSIR personnel at the briefing session are not binding. The written responses to questions will supersede any verbal communication at the briefing session. All questions submitted will be recorded and answers will be provided in writing to all prospective bidders and persons attending the briefing session. 8.1. Provisional Agenda for the Briefing Session Welcome Confirmation of signing of the attendance register Disclaimer Introductory comments Question and answer session 8.2. Venue Details Location: CSIR Information Services at CSIR Main Campus, Meiring Naude Road, Brummeria, Pretoria Venue: Building 22, Central Station Date: 1 December 2014 Time: 10:00 to 12:00 9. Tender Programme The tender program, as currently envisaged, incorporates the following key dates: Issue of tender documents: 23 November 2014 Compulsory Briefing Session: 1 December 2014 RFP Page 7 of 19

Closing date: 12 December 2014 10. Submission of Proposals All proposals are to be sealed. No open proposals will be accepted. All proposals are to be clearly marked with the RFP number and the name of the tenderer on the outside of the main package. Proposals must consist of two parts, each of which is placed in a separate sealed package clearly marked: PART 1: Functionality Proposal: RFP Number: 485/12/12/2014 PART 2: Pricing Proposal, B-BBEE and other Mandatory Documentation Proposals submitted by companies must be signed by a person or persons duly authorised thereto by a resolution of a Board of Directors. The CSIR will award the contract to qualified tenderer (s) whose proposal is determined to be the most advantageous to the CSIR, taking into consideration the technical (functionality) solution, price and B-BBEE. 11. Deadline for Submission Proposals shall be submitted at the address mentioned above no later than 12H00 on 12 December 2014. Where a proposal is not received by the CSIR by the due date and time, it will be regarded as a late tender. Late tenders will not be considered. Enquiries and contact with the CSIR Any enquiry regarding this RFP shall be submitted in writing to CSIR at tender@csir.co.za with RFP No 485/12/12/2014 as the subject. Contact by any means whatsoever with CSIR personnel is not permitted during the RFP process other than as required through existing service arrangements and/or as requested by the CSIR as part of the RFP process. Any form of canvassing by the tenderer to any member of staff or supplier, for purposes of influencing the award of the contract, will automatically disqualify the tenderer from the evaluation process. Tenderers shall not offer or give any consideration of any kind to any employee or representative of the CSIR as an RFP Page 8 of 19

inducement or reward for doing, or refraining from doing, any act in relation to the obtaining or execution of this or any other contract with the CSIR. 12. Medium of Communication All documentation submitted in response to this RFP must be in English, unless otherwise indicated under technical specification. Pricing proposal must be cross-referenced to the sections in the Technical Proposal. Any options offered must be clearly labelled. Separate pricing must be provided for each option offered to ensure that pricing comparisons are clear and unambiguous. Price needs to be provided in South African Rand (excl. VAT), with details on price elements that are subject to escalation and exchange rate fluctuations clearly indicated. Price should include additional cost elements such as freight, insurance until acceptance, duty where applicable. Only firm prices* will be accepted during the tender validity period. Non firm prices** (including prices subject to rates of exchange variations) will not be considered. *Firm price is 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 a 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; **Non-firm price is all prices other than firm prices. 13. Correctness of responses The tenderer furthermore confirms satisfaction regarding the correctness and validity of their proposal and that all prices and rates quoted cover all the work/items specified in the RFP, and that prices and rates quoted cover all obligations under any resulting contract. The tenderer accepts that any mistakes regarding prices and calculations will be at their own risk. RFP Page 9 of 19

14. Offers are binding The tenderer hereby agree that the offer in the proposal shall remain binding upon him/her and receptive for acceptance by the CSIR during the validity period indicated and calculated from the closing date and time of the RFP. 15. Responsibility to execute, and failure to comply The successful tenderer hereby accepts full responsibility for the proper execution and fulfilment of all obligations and conditions devolving on him/her under this agreement as the Principal(s) liable for the due fulfilment of this contract. The respondent hereby offers to render all of the services described in the attached document (if any) to the CSIR on the terms and conditions and in accordance with the specifications stipulated in this RFP documents (and which shall be taken as part of, and incorporated into, this tender at the prices inserted therein). 16. Verification of Documents Tenderers should check the numbers of the pages to satisfy themselves that none are missing or duplicated. No liability will be accepted by the CSIR in regard to anything arising from the fact that pages are missing or duplicated. Telegraphic and telefax proposals will not be accepted. Pricing schedule and B-BBEE credentials should be submitted with the proposal, but as a separate document and no such information should be available in the functional proposal. If a courier service company is being used for delivery of the proposal document, the RFP description must be endorsed on the delivery note/courier packaging to ensure that documents are delivered to the tender box, by the date and time as mentioned above. RFP Page 10 of 19

17. Sub-Contracting A tenderer will not be awarded points for B-BBEE status level if it is indicated in the tender documents that such a tenderer intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a tenderer qualifies for, unless the intended sub-contractor is an exempted micro enterprise that has the capability and ability to execute the sub-contract. A tenderer 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 exempted micro enterprise that has the capability and ability to execute the sub-contract. 18. Other terms and conditions A tenderer shall not assume that information and/or documents supplied to CSIR, at any time prior to this request, are still available to CSIR, and shall consequently not make any reference to such information document in its response to this request. A copy/s of any affiliations, memberships and/or accreditations that support your submission must be included in the tender. In case of proposal from a joint venture, the following must be submitted together with the proposal: Joint venture Agreement including split of work signed by both parties; Each party s B-BBEE and Tax Clearance Certificate; Proof of ownership/shareholder certificates/copies of Identity document; and Company registration certificates. An omission to disclose material information, a factual inaccuracy, and/or a misrepresentation of fact may result in the disqualification of a tender, or cancellation of any subsequent contract. CSIR s decision on tenders received shall be final and binding. Failure to comply with any of the terms and conditions as set out in this document will invalidate the proposal. RFP Page 11 of 19

19. CSIR Reserves the right to: Amend any RFP conditions, validity period, specifications, or extend the closing date and/or time of RFPs before the closing date. All respondents, to whom the RFP documents have been issued, will be advised in writing of such amendments on time; verify any information contained in a proposal; request documentary proof regarding any tendering issue; vary, alter, and / or amend the terms of this RFP, at any time prior to the finalisation of its adjudication hereof; award the tender to an organisation that has strong B-BBEE credentials in terms of current B-BBEE legislation; award the tender to an organisation that is a joint venture with a black empowered company; to give preference to locally manufactured goods; appoint one or more service providers, separately or jointly (whether or not they submitted a joint proposal); award this RFP as a whole or in part; cancel or withdraw this RFP as a whole or in part without furnishing reasons and without attracting any liability. 20. Disclaimers The CSIR has produced this RFP in good faith. However, the CSIR, it agents and its servants do not warrant its accuracy or completeness. To the extent that the CSIR is permitted by law, the CSIR will not be liable for any claim whatsoever and howsoever arising (including, without limitation, any claim in contract, negligence or otherwise) for any incorrect or misleading information contained in this RFP due to any misinterpretation of this RFP. This RFP is a request for proposals only and not an offer document; answers to it must not be construed as acceptance of an offer or imply the existence of a Contract between the parties. By submission of its proposal, tenderers shall be deemed to have satisfied themselves with and to have accepted all Terms & Conditions of this RFP. The CSIR makes no representation, warranty, assurance, guarantee or endorsements to tenderer concerning the RFP, whether with regard to its accuracy, completeness or otherwise and the CSIR shall have no liability towards the tenderer or any other party in connection therewith. RFP Page 12 of 19

SECTION 2: SCOPE OF SERVICES AND REQUIREMENTS Background The CSIR herewith invites brokers to submit a proposal to be reviewed for a possible threeyear agreement for broker, risk management and short term insurance services for the CSIR as per detail provided below. The proposal should address / provide the following: 2.1 Broker fee Please furnish us with a three year fee proposal: Broker fee year 1: Broker fee year 2: Broker fee year 3: R. (VAT Inclusive) R. (VAT Inclusive) R. (VAT Inclusive) 2.2 Services required Services companies are invited to provide to the CSIR risk management and short term insurance broking services. This will include services such as providing advice and consultation on short term insurance, claims handling, risk surveys on an annual basis at Broker s cost and representing the CSIR at insurers and re-insurers. Preference may be given to brokers who have offices in Pretoria. The renewal date for each term will be 1 April of each year, starting on 1 April 2015. One insurance risk survey will be conducted for each site throughout the South Africa per annum. 2.3 CSIR sites The CSIR sites are located as follows: Province Western Cape CSIT Site Name/Location 10 Jan Cilliers Street, Stellenbosch 15 Lower Hope Rd, Rosebank, Cape Town RFP Page 13 of 19

Eastern Cape Kwazulu Natal Gauteng Gommery Ave, Summerstrand, Port Elizabeth Corner King George Street and 5 th Avenue, Durban Meiring-Naude Road, Brummeria, Pretoria Paardefontein Kloppersbos, Gauteng Auckland Park Carlow Road Auckland Park - Cottesloe 2.4 Current sums insured and limits of indemnity APPENDIX 1 The following CSIR information is deemed necessary to furnish the CSIR with a proposal and is to be considered provisional. It will be updated during the following months and the actual figures will be submitted to the successful Broker. This information is provided as it may be deemed necessary to assist in determining the Broker s fee. The CSIR will furnish all brokers with a five-year claim history. No further information will be supplied as we deem this information as sufficient to determine a broking fee. The fee shall include VAT and will be fixed for a period of 12 months. After the first contractual period of 12 months, an increase in broking fees of not more than the CPI index will be accepted. 2.5 Membership Service companies, shall be a member of the South African Financial Intermediaries Association (FIA). Proof of membership must be attached to the completed proposal form. 2.6 Cover Service companies must have a minimum insurance cover of not less than: Professional Indemnity R500 000 000.00 RFP Page 14 of 19

Fidelity Guarantee R250 000 000.00 Please submit proof of cover and indicate excesses applicable. Submit proof that you are able to pay excesses. (Last financial report to accompany the proposal) Please submit proof of FSP licence. 2.7 Appointment of investigators, loss adjusters and assessors Service companies must have a mandate to appoint an assessor immediately and must submit proof of such. 2.8 Office visits The CSIR reserves the right to visit the offices of the Risk Management and Short Term Insurance Broking Service companies offices at any time. 2.9 Presentation Any or all Service companies can be requested to present the short term insurance programme to the CSIR. 2.10 Confidentiality All or any information provided to Service companies by the CSIR, shall be regarded as strictly confidential and will not be made known to third parties without the written consent of the CSIR. 2.11 Preparation of proposal The CSIR will not be held responsible for any cost incurred by the Risk Management and Short Term Insurance Broking Service companies in the preparation and handling of the proposal. RFP Page 15 of 19

2.12 Claims handling Claims handling will be done by the successful Risk Management and Short Term Insurance Broking Service Company in-house and shall not be outsourced. 2.13 Company profile A company profile must be submitted indicating salient factors such as: Company registration and VAT registration details Date business started Shareholders and directors, registered and committed Trade references (min three references) Bankers detail Last 3 years financial statements Cancelled original cheque Tax Clearance Certificate, must be valid for a period of 6 months Trading history, if any, with the CSIR The key contact people (plus detailed CV in terms of FAIS, fit and proper standing) that would be allocated to this account. Reasons why you believe the CSIR should consider you as a preferred supplier. Please Note: The CSIR retains the right to investigate any information provided and may call for any supporting information. Any misrepresentation will result in a potential broker being disqualified and excluded from any further involvement in this process. 2.14 Other conditions The below conditions form part of this RFP: Full price tender including premiums and broker earnings to be included in the proposal No underwriting survey reports including EML/MFL calculations are available quote per insurance summary Prospective suppliers may approach all Insurers complying with the relevant statutory solvency and other requirements. Prospective supplier s proposals should include all classes of insurance listed in the tender. Quotations to be based on existing insurance programme structure and deductibles no cover, limits or extensions reflected may be amended or deleted RFP Page 16 of 19

Prospective suppliers can include alternative placement structure quotations if they want but a firm quotation must be provided per the insurance summary and claims experience provided. Annual 100% Premiums VAT inclusive must be shown net of any insurer/broker and reinsurance commissions per policy class as per insurance summary provided. Should a deposit premium apply, it must be shown and a full explanation must be given as to how the deposit premium will operate. Nevertheless only the 100% or maximum premiums must be shown in the summary page of insurance cost per policy class. If the policy premium is subject to declaration adjustments, please advise how it would affect the premium. The Broker s annual service fee or commission earnings inclusive of VAT to be provided as well as annual inflation for the tender period. Support for the prospective supplier s proposals should be evidenced by a signed participation confirmation letter from Insurers/Reinsurers per policy class who will support the recommended structure at the terms, conditions and exceptions proposed by the prospective supplier. The appointed Short Term Insurance Broker will not be allowed to increase the insurance premiums for the tender period with more than the CPI, unless substantiating proof from the quotations received from the insurers reflected a hardening insurance market or which is based on an adverse/increase on claims incidents/values. In the event of organic growth of the portfolio including but not limited to inflationary increase of the sums insured and inclusion of additional cover and services the afore going rule limiting the premium growth to CPI shall not apply. Premium quotations to be valid till 1 April 2015 Compulsory Briefing Session to be attended by interested brokers Proposed Service Team Credentials, experience and qualifications including proof of FSB Regulatory Examination (FAIS) Certificate of the team members that will be involved in the day to day servicing of the CSIR portfolio Broker Office/Service Branches network in South Africa Broker servicing strategy and annual plan envisaged for CSIR CSIR to schedule services to be rendered by broker and these to be included in the broker annual service fee/commission earnings quoted Copy of bidders Standard Terms of Engagement (TOE) to be provided Existing client reference contact details/letter confirming prospective suppliers involvement in 5 clients similar to the size of CSIR Sample of the 5 largest claims handled by the prospective suppliers till final settlement by insurers in the past 3 years. RFP Page 17 of 19

Qualifications The CSIR reserves the right to investigate the qualifications and accomplishments of all suppliers under consideration. The CSIR may require additional evidence of technical capabilities and other representations made in conjunction with responses to the RFP. This additional evidence may include, but is not limited to, references from supplier s clients who received similar services. Conflict of Interest The successful supplier shall not be allowed to provide any equipment, or management services to the CSIR that may be recommended as a result of the risk assessment or have any financial or operational ties to any potential vendors. RFP Page 18 of 19

Declaration of Interest RFP No:.. Only tenderers who have completed and signed the declaration part of the tender documentation may be considered for evaluation. 1. I hereby undertake to render services described in the attached tendering documents to CSIR in accordance with the requirements and task directives / proposal specifications stipulated in RFP Number... at the price/s quoted. My offer/s remains binding upon me and open for acceptance by the CSIR during the validity period indicated and calculated from the closing date of the proposal. 2. The following documents shall be deemed to form and be read and construed as part of this proposal: (specify the list of documents that must be submitted) (i) (ii) (iii) Tender documents, viz Tax clearance certificate; Pricing schedule(s); Broad Based Black Economic Empowerment Status Level of Contribution in terms of the Preferential Procurement Regulations 2011; Declaration of interest; Special conditions of the tender; Etc. Terms and Conditions of proposal; and Other (specify) 3. I confirm that I have satisfied myself as to the correctness and validity of my proposal; that the price(s) and rate(s) quoted cover all the services specified in the proposal documents; that the price(s) and rate(s) cover all my obligations and I accept that any mistakes regarding price(s) and rate(s) and calculations will be at my own risk. 4. I accept full responsibility for the proper execution and fulfilment of all obligations and conditions devolving on me under this proposal as the principal liable for the due fulfilment of this proposal. 5. I declare that I have no participation in any collusive practices with any tenderer or any other person regarding this or any other proposal. RFP Page 19 of 19

6. I accept that the CSIR may take appropriate actions, deemed necessary, should there be a conflict of interest or if this declaration proves to be false. 7. I confirm that I am duly authorised to sign this proposal. NAME (PRINT). CAPACITY... SIGNATURE... NAME OF FIRM.... DATE... WITNESSES 1. 2. DATE:... RFP Page 20 of 19