16 July 2014 Development of Eskom Real Estate Master Plan detailing Asset Management Solution, Property Management Solution, Procurement and Financial Approaches and Execution Plan PS(HO)2014/GS/01 Clarification Meeting

2 AGENDA TimeItemFacilitator 10:00Welcome & Safety EvacuationMWP Safety Rep 10:05Project Background & Technical Requirements  Scope of work  Key deliverable  Technical evaluations Bafana Hlophe 10:15Commercial and SDL RequirementsElvis Mulovhedzi 11:00Health & Safety RequirementsPhillip Mathebula 11:30Quality RequirementsMothusi Itumeleng 11:45Financial RequirementsElvis Mulovhedzi 12:15Questions & AnswersAll ClosureElvis Mulovhedzi

Project Background and Technical Requirements

Commercial & SDL Requirements

Commercial Requirements  General Information Information sharing is non-compulsory RFP / Tender / Enquiry No. PS(HO)2014/GS/01 Issue 04 July 2014 and closing 07 August 2014; at 10H00 Acknowledgement form Tender Bulletin link: Eskom Representative details (Commercial, Technical, Financial, SD&L): or

Commercial Requirements  Guidelines Deadline of clarification of queries; 31 July 2014 The tender shall be submitted as an original hard copy, plus 1 copy (identical to the original), and x1 soft copy in CD / USB The soft copy is not a substitute for hardcopy which must still be provided. Failure to adhere to this requirements will render tenderer non-responsive and the tender that does not meet the requirements will be disqualified. The proposal must be indexed and structured into 3 sections: o Section 1 – Commercial Proposal (Commercial returnable including Prices/Financial information) o Section 2 – Technical Proposal (Separate subfolders, into; Technical, Safety and Quality) o Section 3 – Supplier Development and Localisation NB: Prices on hard copies must be identical to the ones on the CD /USB.

Commercial Requirements  Guidelines cont… o Proposals marked ‘Confidential’ and displaying the RFP no. PS(HO)2014/GS/01 and the tenderer’s name should be deposited to the Eskom Tender Box located at : Tender Office (Opposite Main Reception) Eskom Megawatt Park Office 1 Maxwell Drive Sunninghill Ext. 3Sandton Johannesburg The tender offer validity period is twelve (12) weeks 7

Commercial Requirements  Evaluation Criteria Preferential Procurement Policy Framework Act (PPPFA) evaluation process (90/10 methodology) Commercial requirements i.e. tender returnable and compliance to the submission criteria Two steps (2) evaluation Steps: I.Functional Analysis (Technical and SHEQ) – 70% threshold II.Price and Preference (90/10) Negotiation items: I. SD&L targets Contract award item: I.Financial capacity 8

SD&L 9  Eskom strategic objective of transformation, reduce unemployment, skills development and equity.  Seek opportunities in procurement  Partner with willing and able suppliers in executing the objective.

Skills Development 10 Tenderers are encouraged to participate in creating experiential training for unemployed learners in the following areas: Type of SkillNumber Real Estate Analyst1

Background 11

Retention 12  In order to ensure compliance and achievement of these obligations a retention of 2% on every invoice paid shall apply.  The amount shall be payable back in full to the contractor on verified achievement of all obligations.  Where a contractor partially achieves its obligations then a portion of the amount shall be refunded based on pre- agreed formula of calculation of penalties.

Health and Safety Requirements

SAFETY REQUIREMENTS 16 July 2014 Thembinkosi Mbolekwa

INTRODUCTION 1.COID Act 2.General Safety Requirements 3.Health and safety plan 4.Risk Assessments for work to be performed 5.Returnable documents for tender evaluation 15

Letter of Good Standing Required 1.COID Act:  An employer carrying on business in the Republic shall within the prescribed period and in the prescribed manner register with the commissioner. 2. Construction Regulations:  The client shall ensure that every PC is registered and in Good Standing with the Compensation Fund or with a licensed compensation insurer prior to work commencing on site. 16

Risk Assessments for work to be performed The tendering contractor shall submit a risk assessment as part of the health and safety plan which must include:  the identification of the risks and hazards to which persons may be exposed to,  An analysis and evaluation of the risks and hazards identified based on a documented method;  A documented plan and applicable safe work procedures to mitigate, reduce or control the risks and hazards that has been identified;  A monitoring plan; and  A review plan 17

Required documents to form part of you Health and safety plan A SHE Policy signed by the CEO; Management structure and legal appointments (company organogram). Resources, Roles, Responsibility and Authority; Competency, training and awareness program Hazard Identification, Risk Assessment and controls & SHE Method Statements. Sub-contractor and Supplier management program( Process applied to select, qualify and monitoring SHE compliance of sub-contractor during work execution.) Letter of Good Standing with The Compensation Commissioner (licensed insurer or equivalent) 2016/06/0918

Required documents to form part of you Health and safety plan Incident management program (Corrective and preventive action management from incidents including lessons learned, communication) Medical surveillance program ( certificate of medical fitness and Man-job specifications-( risk based)) Emergency preparedness and response procedures 19

Tender evaluation process for SHE OHS Requirements:Scores (%) Health and Safety Plan:  Contractor Organogram,  Signed SHE Policy Statement,  Acknowledgement of Eskom Life Saving Rules,  List of OH&S Appointees & CV’s,  Letter of Good Standing,  Sub-contractor Management,  Transporting of workers. 50% Risk Assessments:  HIRA Process,  Risk Rating Process,  High risk management process (e.g. Driving) 30% Incident Management Process:  Incident Investigation Process,  Contractor’s LTIR information,  Incident reporting etc. 20% 20

Quality Requirements

13/05/ QM 58 – Supplier Contract Requirements Purpose - Define the quality requirements/returnable documents which shall be submitted with a tender. Quality requirements are based on ISO 9001:2008. The required Quality requirements/returnable are as follows: o Quality Management System (QMS) Requirements. o Evidence of QMS in operations. o Additional/Customized Requirements (form A and B)  Note: QM – 58 defines the above mentioned requirements (read para 3.2 –and 3.3).  All returnable documents should be in English.

13/05/ Quality Documentation with Tender The supplier shall submit the following quality documentation with the tender: o Quality Management System (QMS) Requirements.  Submit a copy of valid ISO 9001:2008 certification.  OR  Submit an objective evidence of a QMS, consisting of the following: Quality Manual. Document Control Procedure (Clause 4.2.3), Record Control Procedure (Clause 4.2.4), Internal Audit Control Procedure (Clause 8.2.2), Control of nonconforming product (Clause 8.3), Corrective Action Procedure (Clause 8.5.2), Preventative Action Procedure (Clause 8.5.3). Procedure for control of suppliers (i.e. additional procedure).

13/05/ Quality Documentation with Tender Evidence of QMS in operations. Copy of closed out and completed product / process NCR. Copy of closed out and completed product / process CAR. Copy of closed out and completed product / process PAR. Detailed CV of the supplier QMR. Copy of organisational structure indicating QMR position. Historical information register on similar work carried out. Copy of customer satisfaction survey. Additional/Customized Requirements. Form A – Tender & Contract Quality Requirements (App A – QM 58). Form B – Quality Management System Requirements (App B – QM 58).

25 Evaluation Criteria & Weights Ref Clause (QM 58) Supplier Tender Submissions (Checklist) Weights (%) 1.Quality Management System Requirements (ISO 9001):  IS0 9001:2008 Certification OR,  Quality Manual with 6 Mandatory Procedures. 45% 2Evidence of QMS in operation:  Copy of closed out and completed product / process NCR.  Copy of closed out and completed product / process CAR.  Copy of closed out and completed product / process PAR.  Detailed CV of the supplier QMR.  Copy of organizational structure indicating QMR position.  Historical information register on similar work carried out.  Copy of customer satisfaction survey. 45% 3Additional/Customized Requirements.  Form A.  Form B. 10%

Financial Requirements

QUESTIONS & ANSWERS?. 27

Thank you