Eskom Holdings Limited

Eskom Holdings Limited T1.2 Tender Data The conditions of tender are the Standard Conditions of Tender as contained in Annex F of the CIDB Standard for Uniformity in Construction Procurement (January 2009) as published in Board Notice 12 of 2009 in Government Gazette No 31823 of 30 January 2009. (See www.cidb.org.za). The Standard Conditions of Tender make several references to the Tender Data for details that apply specifically to this tender. The Tender Data shall have precedence in the interpretation of any ambiguity or inconsistency between it and the Standard Conditions of Tender. Each item of data given below is cross-referenced to the clause in the Standard Conditions of Tender to which it mainly applies. Clause number F.1.1 F.1.2 The employer is Eskom Holdings SOC Limited Tender Data The tender documents issued by the employer comprise the following documents: Volume 1: Tendering procedures T1.1 Invitation to tender T1.2 Tender data Volume 2: Returnable documents T2.1 List of returnable documents T2.2 Returnable schedules C1.1 Form of offer and acceptance C1.2 Contract data (part 2) Volume 3: The contract Part C1: Agreements and contract data C1.2 Contract data (part 1) C1.3 Form of Guarantee Part C2: Pricing data C2.1 Pricing instructions Part C3: Scope of work C3 Scope of work Part C4: Site information C4 Site information F.1.4 The employer s agent is : Name: Zandile Mahlangu Address: Komati Power Station, Private bag, Blinkpan, 2250 Tel: (013) Fax: (086) 667 4831 E-mail: F.1.6 The competitive negotiation procedure shall be applied at the discretion of the Employer.. PART T1: TENDERING PROCEDURES 1 OF 5 T1.2 TENDER DATA

F.2.1 Only those tenderers who satisfy the following eligibility criteria are eligible to submit tenders: "BBBEE Levels 1-4 Suppliers in the Mpumalanga Province F.2.7 There is no clarification meeting. Main tender offers are not required to be submitted together with alternative tenders. Alternative offers should clearly be marked ALTERNATIVE. Alternative tender offers will be considered based on a different completion date If tenderer wishes to submit an alternative tender offer, the only criteria permitted for such alternative tender offer is that it demonstrably satisfies the Employer s standards and requirements, the details of which may be obtained from the Employer s Representative. Acceptance of an alternative tender offer will mean acceptance in principle of the offer. It will be an obligation of the contract for the tenderer, in the event that the alternative is accepted, to accept full responsibility and liability that the alternative offer complies in all respects with the Employer s standards and requirements. F.2.13.3 Parts of each tender offer communicated on paper shall be submitted as an original, plus 1 copy. F.2.13.5 F.2.15.1 The employer s details and address for delivery of tender offers and identification details that are to be shown on each tender offer package are: Location of Tender box: 10 Smuts Avenue Emalahleni Identification details: MPGXC003858 Attention: Mr Enock Mabena Press CTRL + click on the link below to view GPS coordinates: http://maps.blackberry.com?lat=- 25.87367&scr_z=0&lon=29.21745&label=10+Smuts+Avenue%2C+Witbank%2C+South+Africa& address=10+smuts+avenue&city=witbank&region=mpumalanga&country=south+africa&z=0 Latitude: 25.87723S Longitude: 29.21629E F.2.13.9 F.2.15 F.2.16 F.2.18 F.3.1.1 Telephonic, telegraphic, telex, facsimile or e-mailed tender offers will not be accepted. 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. The tenderer shall, when requested by the Employer to do so, submit the names of all management and supervisory staff that will be employed to supervise the Labour Intensive portion of the works together with satisfactory evidence that such staff members satisfy the eligibility requirements. The Employer will respond to requests for clarification received up to 3 working days before the tender closing time. PART T1: TENDERING PROCEDURES 2 OF 5 T1.2 TENDER DATA

F.3.1.2 The Employer reserves the right to negotiate Post Tender with one or more Short Listed Suppliers after receipt of Tenders/ Offers CRITERIA With the Lowest Priced Tender or When Eskom Holdings SOC Limited s price estimation is substantially lower than that of the lowest priced tender / offer. F.3.11.1 The financial offer will be reduced to a comparative basis using the Tender Assessment Schedule. F.3.11.2 The procedure for the evaluation of responsive tenders is Method 1 F.3.13.1 Tender offers will only be accepted if: a) the tenderer submits an original valid Tax Clearance Certificate issued by the South African Revenue Services or has made arrangements to meet outstanding tax obligations; b) the tenderer has not: i) abused the Employer s Supply Chain Management System; or ii) failed to perform on any previous contract and has been given a written notice to this effect. f) the tenderer has completed the Compulsory Enterprise Questionnaire and there are no conflicts of interest which may impact on the tenderer s ability to perform the contract in the best interests of the employer or potentially compromise the tender process and persons in the employ of the state are permitted to submit tenders or participate in the contract; g) the tenderer is registered and in good standing with the compensation fund or with a licensed compensation insurer; h) the employer is reasonably satisfied that the tenderer has in terms of the Construction Regulations, 2003, issued in terms of the Occupational Health and Safety Act, 1993, the necessary competencies and resources to carry out the work safely. F.3.18 The number of paper copies of the signed contract to be provided by the employer is 1. The additional conditions of tender are: Z clauses TENDER EVALUATION A Standard Tender evaluation process will be followed based on the following procedure: A standard tender evaluation process will be followed as stipulated in Eskom Procurement and Supply Chain Management Procedure (32-1034) in conjunction with the Preferential Procurement Policy Framework Act (PPPFA), No.5 of 2000 To apply the 90/10 preferential point system during evaluation as per the Preferential Procurement regulations, 2011 pertaining to the Preferential Procurement Policy Framework Act, Act no 5 of 2000(PPPFA), which includes the use of standard prescribed formulae for the determination of scoring and ranking; and A three (3) step evaluation will be conducted. 1. Objective Criteria 2. Price and Preference Analysis 3. Local Production and Content PART T1: TENDERING PROCEDURES 3 OF 5 T1.2 TENDER DATA

Objective Criteria Step 1 - (Technical, Commercial, SHE and Quality). Proposals will be required to meet a 70% qualifying score in order to be evaluated further and proposals that fail to achieve the minimum qualifying score will be disqualified. A weighted score-card approach will be used to evaluate technical compliance of tenders against the specification. The review will be done by the cross function team consisting of: Technical team namely: Dinah Mahlangu, Commercial: Enock Mabena, Financial: Babalwa Umoetok, OHS: Thabitha Letele, Quality: Snegugu Piko and Environment: Mokgadi. Evaluation Criteria DESCRIPTION Maximum number of point percentage Technical 100% 40% Safety and Health 100% 30% Quality 100% 30% Commercial & Financial 100% 70% Tenders will be expected to score at least the minimum threshold per functional area to proceed to the next phase SCORE TECHNICAL 100% State if company has a sustainable resource plan 10% The contractor should be familiar with the Power Station Environment. 35% Capable of use of sweeper and vacuum machines 15% CVs and copies of Site Manager, Safety Officer and Supervisor. 20% Lashing activity should be carried out by workers familiar with lashing. 25% QUALITY 100% A copy of ISO 9001:2008 Certification/ Objective evidence of a QMS that complies with ISO 9001:2008 Attach information on similar work performed (at most within the last two years) 15% Submit a list of long lead times 15 % Supply copies of any QMS / Technical assessment reports carried out by Eskom in the last two years/ Internal audits 1 st party Attach a minimum of 5 copies of typical customer satisfaction surveys / questionnaires as per the requirements of ISO 9001 2008 (Clause 8.2.1) SHE SAFETY HEALTH AND ENVIRONMENT 100% Comply to OHS Act and Hazardous Chemicals Substance Regulation 30% SHE Policy 20% Letter of Good Standing with Compensation Commissioner 10% Acceptance of Komati Power Station Safety, Health, Quality and Environmental Requirements 20% Acceptance of Eskom live saving rules and Safety Rules Enforcement directive 20% COMMERCIAL & FINANCIAL 100% Price List with Activity Schedule 20% Valid SARS Tax Clearance Certificate 20% Supplier PAYE Evaluation Pack 10% NEC3 Form of offer and Acceptance 15% Supplier B-BBEE Verification Certificate and SD&L Requirements 25% Employment Equity Registry 10% 40 % 15% 15% PART T1: TENDERING PROCEDURES 4 OF 5 T1.2 TENDER DATA

Step 2 The Price will be based on the 90/10 preferential point system during evaluation as per the Preferential Procurement regulations, 2011 pertaining to the Preferential Procurement Policy Framework Act, Act no 5 of 2000(PPPFA), which includes the use of standard prescribed formulae for the determination of scoring and ranking. Calculate price points out of 90% Price. Apply preference points according to B-BBEE level contribution =10% Add price points and preference points Select tender with highest points (Price Points + Preference Points) NB: Post Tender negotiations shall ONLY be conducted under the following circumstances: With the Lowest Priced Tender or When Eskom Holdings SOC Limited s price estimation is substantially lower than that of the lowest priced tender / offer. Number of Points (90/10 system) B-BBEE Qualification For procurement above R1 million 1 100 points 10 2 85 points < 100 points 9 3 75 points < 85 points 8 4 65 points < 75 points 5 5 55 points < 65 points 4 6 45 points < 55 points 3 7 40 points < 45 points 2 8 30 points < 40 points 1 Non-compliant contributor < 30 points 0 Step 3 SD&L REQUIREMENTS Eskom Holdings SOC Limited, as a State Owned Enterprise, is supportive of the South African Government s Growth, poverty eradication and job creation strategy, SD&L (Supplier Development and Localization) Eskom Holdings SOC Limited's contribution to this initiative is to set local content, Black economic empowerment (BEE, BWO and SME) and skills development targets as key evaluation criteria in tenders that it awards. SD&L compliance will form part of the overall evaluation process for all Eskom Holdings SOC Limited s formal tenders. SUPPLIER DEVELOPMENT & LOCALISATION REQUIREMENTS / OBLIGATIONS Objective Criteria (Non-weighted criterion) The objective criteria of this package are to advance participation of businesses that are BBBEE compliant. Eskom Prefers to do business with BBBEE compliance Level 1-4. Suppliers who will not meet the above levels upon contracting will be required to submit a proposal on how they will migrate to the required Level within a year. PART T1: TENDERING PROCEDURES 5 OF 5 T1.2 TENDER DATA