CLARIFICATION MEETING FOR PPE ACCESSORIES CORP 2902R THE SUPPLY & DELIVERY OF PPE ACCESSORIES ON AN “AS AND WHEN REQUIRED” BASIS TO ESKOM SOC LTD NATIONWIDE ON A PROVINCIAL BASIS FOR A PERIOD OF 5 YRS 10 JULY 2014

AGENDA: CORP 2902R 2 ITEMSUBJECTRESPONSIBLE 1Opening and WelcomeNtswaki Fedile-Ditshoene 2Evacuation ProcedureEskom Safety Representative 3BackgroundNtokozo Ngubane 4Commercial PresentationNokuthula Ntshingila 5DTI-Local Procurement & ProductionRendani & Jaywant Irkhede 6Finance PresentationSuni John & Brian Muriwa 7Technical PresentationNtokozo Ngubane 8SHEMthokozisi Mhlanga 9Quality PresentationMarga Kruger 10Supplier Development & LocalisationIshmael Modiko 11QuestionsAll 12Closing

Commercial Nokuthula Ntshingila

NEC SUPPLY CONTRACT TERMS AND CONDITIONS – CORP 2902R NEC Supply contract will apply with the following options: X1 – Price adjustment for inflation X2 – Changes in the Law X4 – Parent Company Guarantee X7 – Delay Damages Z – Additional conditions of Contract 4

CONTACTS & SUBMISSION DEADLINES – CORP 2902R Eskom Contact for Corp 2902R: Name – Nokuthula Ntshingila Landline – – Timelines/Deadlines: Clarification Queries Closing Date: 29 th July 2014 (2 working days prior closing date) Enquiry Closing Date: 01 st Aug 2014 Enquiry Closing Time: 10:00am SA Telkom Time (no late submission/s will be accepted under any circumstances) – not even by a second Tender Submission Address: Corp 2902R The Tender Office Advice Centre Opposite the Main Reception Eskom Megawatt Park Maxwell Drive, Sunninghill 5 Free of Charge

SUBMISSION DOCUMENTS – CORP 2902R Your Company Return Address (In case your submission is late) Enquiry Submission: (a)The tender shall be submitted as an original hard copy, plus one (1) copy (identical to the original), and one (1) soft copy in CD / USB containing the prices only in both Pdf and excel format (See Price Schedule). The soft copy is not a substitute for hardcopy which must still be provided. (b)Tender Submission Folders to be arranged and labelled as follows: 1.Commercial (as per Commercial Tender Returnables) 2.Financial / Price 3.Supplier Development and Localisation (as per SD&L Tender Returnables) 4.SHE (as per SHE Tender Returnables) 5.Quality (as per Quality Tender Returnables) 6.Technical (as per Technical Tender Returnable) 6

EVALUATION METHOD – CORP 2902 NB! All the tenders will be evaluated centrally in Megawatt Park; the suppliers will be selected according to the province they have tendered for. This provincial tender is expected to provide the services to (9) nine provinces of South Africa.  Basic Compliance Review tender submissions for compliance to all submission requirements Ensure mandatory requirements are met. NEC contract document completed in full Declaration certificate for Local content SBD 6.2  Step 1: Functionality Technical – 40% SHE – 30% Quality – 30% Tenders which do not meet Eskom’s functionality requirements will not be evaluated further. 7

EVALUATION METHOD – CORP 2902 Cont…..  Step 2: Local Production and Content All service providers will be required to submit a Declaration Certificate for Local Production and Content SBD 6.2 (Annexure B). If the raw material to be used for a specific item is not available locally, tenderers should obtain written authorisation from the Department of Trade and Industry (DTI) should there be a need to import such raw material. A copy of the authorisation letter must be submitted together with the tender documents at the tender closing date.  Step 3: Financial Analysis An analysis of the tenderers financial statements will be conducted for the purposes of establishing the tenderers financial viability.  Step 4 – Price and Preference Eskom, as a State Owned Enterprise will use the PPPFA evaluation criteria to evaluate all bids that fully meet the above stated gate keepers. The 90/10 preference points system will be used. Calculate price points out of 90 (Tendered price). Preference points out of 10, for B-BBEE level contribution will be applied. 8

EVALUATION METHOD – CORP 2902 Cont.…..  Skills Development for Project (not a weighted criterion) PPPFA will be applicable in this transaction. Over and above the 10% allocated for B-BBEE; tenderers will also be encouraged to participate in skills development initiative during the negotiations with the shortlisted tenderers. This will form part of the contractual obligation with the successful suppliers. 9

Tender Returnables List of Tender Returnables is accessible on pages 13 to 20 of the Invitation to Tender document Non-submission of “ mandatory for evaluation” documents will render your tender non-responsive. Although all other documents are mandatory for contract award, tenderers are encouraged to submit all tender returnable documents for completeness purpose. 10

Supplier Development & Localisation (SD&L) Ishmael Modiko

We have a mandate to contribute positively to the development of the country 12 Our mandate is to achieve maximum and sustainable local development impact through leveraging Eskom’s procurement spend in a manner that allows flexibility within the business in order to accommodate government local development initiatives and policies

13 SD&L measures impact along these key performance areas Definition Key performance areas Increasing the skill base (number and skill level) of South African workers in areas relevant to the energy sector and where there is a national scarcity of skills Skills development Utilisation of Eskom and suppliers’ spend to develop South African based suppliers relevant to the energy sector (focusing primarily on BBB-EE Black Owned and youth owned suppliers) Local content Utilisation of Eskom and suppliers’ spend to foster the establishment of new competitive industries in the energy sector Industrialisation Creation of new jobs by suppliers as a direct result of Eskom business Employment and job creation Providing a platform to develop emerging suppliers, and further contribution to local developmental opportunities for national and international suppliers Supplier development

SD&L evaluation criteria (Condition of Tendering) Special Conditions of Tender (Application of other criteria in terms of section 2(1)(f) of PPPFA) 14 The objective criteria for this tender are the following: o Transformation of this sector by the appointment of a Black Owned Firm(s), o Job creation for previously disadvantaged people. o Development of small black manufacturers To achieve the above the following aspects will apply  Appoint a 100% Black Owned firm or joint venture where the lead firm with more than 50% black owned or in the event where Non-black firm get awarded the tender: 30% of spent will be with black owned distributor/supplier. NB. The joint venture may be: i)black and black or ii)black women and black owned Please note Local content will form part of DTI requirements and skills development will be negotiated prior tender award.

SD&L evaluation criteria under PPPFA The evaluation criteria seeks to increase SD&L evaluation score allocation in the overall scoring and to ensure all dimensions of local development are considered: 10%  B-BBEE - Levels (see below score card) 15

SD&L Skills Development Compliance Matrix Example {It will form part of negotiations} 16

17 B-BBEE Evaluation Scorecard

18 Occupational Health and Safety Specification (SHE) Presented by : Mthokozisi Mhlanga Contractor management OH&S

Eskom’s Core Values: ZERO HARM 2016/06/0719 Excellence Acknowledged by all for exceptional standards, performance and professionalism. Innovation Value-adding creativity and results oriented. Lead through excellence in innovation. Customer Satisfaction A commitment to meet and strive to exceed the needs of the receivers of products and services. IntegrityHonesty of purpose, conduct and discipline in actions, and respect for people. Zero HarmEskom will strive to ensure that zero harm befalls its employees, contractors, the public and the natural environment. Applicability : All Eskom Employees, Agents, Consultants, Suppliers, Contractors & Visitors. Eskom Values

Tenderer SHE Returnables Contractor Risk Category: Low Risk Non- negotiable minimum requirements that tenderers have to address and respond to when submitting tender returnables for evaluation are: Acknowledgement Form for Eskom’s Rules and Requirements (in Annexure B) signed & submitted by the Tenderer Health and Safety Plan Baseline Risk Assessment Valid Letter of Good Standing SHE Policy Failure to submit any of the above documentation will result to disqualification for further evaluation. 20

Eskom’s Rules and Requirements This is the acknowledgement form issued to the tenderer for his or her own acknowledgement of a clear understanding of all the SHE requirements at Eskom. Signing the Annexure B form will be deemed as your acceptance to conform to the following documentation and application of such within your scope of work. The following Policies/Procedures are in support of Eskom SHE requirements: Eskom SHEQ Policy Eskom Cardinal Rules Eskom Substance Abuse Policy Eskom Vehicle & Driver Procedure Incident Management Procedure The Policies & Procedures above are not tender returnables but for guidance and reference purposes. 21

Health & Safety (SHE) Plan A detailed SHE plan must address but not limited to the following : - Implementation of a SHE system, how it will be monitored and controlled - Training and competency for employees - Access and monitoring and control of visitors - Fire and Emergency preparedness - SHE risk management - How the culture of Zero harm will be entrenched into the company’s operations - The induction programme for all employees and visitors - Incident management - Personal protective equipment and safeguarding of employees - Safety initiatives, SHE awareness and communication - Housekeeping - Medical certificates - Vehicle and Driver safety 22

Baseline Risk Assessment The purpose of conducting a Baseline Risk Assessment is to establish a risk profile or a set of risk profiles. It is used to prioritise action programmes for issue-based risk assessments. The output of a Baseline Risk Assessment - is a risk profile or set of risk profiles; and It is a clear description of the methodology, system, terminology etc. used in the scoping exercise, and what may be required for the improvement of the Baseline Risk Assessment in the future. 23

Valid Letter of Good Standing It is essential to ensure that all suppliers which perform work at Eskom premises be registered with the Compensation Fund in terms of the Compensation for Occupational Injuries and Diseases Act (COID Act). In order to ensure that the above mentioned is adhered to, the tenderer needs to submit a valid letter of good standing from the Compensation Commissioner, based on Legislation in section 89, of the Compensation for Occupational Injuries and Diseases Act. 24

SHE Policy A SHE policy is a written statement of principles and goals embodying the company's commitment to workplace health and safety signed by the CEO. There are no hard and fast rules about what to include in a policy. The tenderer should create a policy that is suitable and sufficient in order to address the health and safety needs of the company. The Occupational Health and Safety Act, Act 85 of 1993, requires the employer to provide and maintain as far as reasonable and practical a work environment that is safe and without risk to the health of employees. Section 7 of the Act provides direction to employers concerning the health and safety policy of the organisation. 25

26

Technical Ntokozo Ngubane & Technical Team

Technical requirements a) Manufacturer requirements Phase 1 Completed Annexure A clearly stating the products they can manufacture and supply, also confirmation that their products comply with the Eskom specification. Phase 2 Prepare samples for the products they have tendered for to be evaluated during the site visits. Prepare the required supporting documentation for review during the site visit. The Eskom Technical Evaluating team will inspect the samples provided for compliance with the Eskom’s PPE Specification. NB: Phase 2 will be conducted on the shortlisted tenderers during Technical Evaluation. Only shortlisted tenderers will be notified of the Phase 2 requirements as well as preparation of samples & documentation. 28

Technical requirements Distributors requirements Phase 1 Obtain and submit a Letter of Agreement signed by the Manufacturer or a person in the similar level confirming that they will be sourcing their products from that Manufacturer. A completed Annexure A clearly stating products they are tendering for and confirmation that they comply with Eskom’s Specification. Phase 2 Request the Manufacturer to prepare samples for evaluation. Accompany the evaluation team to the Manufacturer’s premises during the site visit. Ensure that the required supporting documentation is prepared before site visit and is available during the site evaluation. NB: Phase 2 will be conducted on the shortlisted tenderers during Technical Evaluation. Shortlisted tenderers will be notified of the Phase 2 requirements as well as preparation of samples & documentation. 29

Technical requirements 30

Questions 31 ? 11 July 2013

Dankie Enkosi Thank you Siyabonga kakulu Ke a leboga Ke a leboha Ngiyabonga Ndi a livhuwa Ndzi khense ngopfu Commercial Finance