The Provision of Facilities Management Services to Eskom Real Estate (ERE) Corporate & Zone office buildings in Gauteng Clarification Meeting on 26 February 2015

Financial requirements Presented by: Suni John – Commercial Finance

3 Financial Returnables: Corporate and Zone office buildings 1. Pricing Schedule (Excel File) CORPORATE BUILDINGS (5 Price schedules): Gauteng maintenance – Price schedule: 1. Sunninghill Buildings 2. Megawatt Park 3. Simmerpan complex 4. EAL 5. ERIC ZONE OFFICE BUILDINGS (Core + Non-core technical) (4 + 4 price schedules) Gauteng maintenance zone office price schedules: 1. Tshwane 2. Ekurhuleni 3. JHB 4. Vaal

Financial Returnables: Corporate and Zone office buildings 4 Please note clause number 2.18 in the Invitation to tender document: CORPORATE BUILDINGS: The tender shall be for the whole of the contract. Tenderers can tender for not more than two (2) Corporate Sites. Only one (1) Site will be awarded per supplier. ZONE OFFICE BUILDINGS: The tender shall tender for the specific functional grouping either Core Technical Services OR Non-Core Technical Services for a respective Zone being tendered for. Tenderers can tender for not more than two (2) Zone Sites. Only one (1) Site will be awarded per supplier.

5 Financial Returnables: Corporate and Zone office buildings 1.1 Corporate Buildings Pricing Schedule (Excel File) Consists of following worksheets: 1.Cover page 2.Contents 3.Supplementary preambles 4.Section 1 – 15 Core technical services (15 worksheets) 5.Section 16 – 18 Non-core technical services (3 worksheets) 6. CPA 7. Prescribed indices 8.Final summary 1.2 Zone office Core Technical Price schedule (Excel File) Consists of following worksheets: 1.Cover page 2.Contents 3.Supplementary preambles 4.Section 1 – 15 Core technical services (15 worksheets) 5. CPA 6.Prescribed indices 7.Final summary

Financial Returnables: Corporate and Zone office buildings Zone office Non-Core Technical Price schedule (Excel File) Consists of following worksheets: 1.Cover page 2.Contents 3.Supplementary preambles 4.Section 16 – 18 Non-Core technical services (3 worksheets) 5. CPA 6.Prescribed indices 7.Final summary 2. CPA requirements for Local (South African) Goods/Services

Note: some rows and columns that appear in the Excel file are hidden in the above extract 7 Cover sheet: Corporate & Zone office Tenderers to Enter all relevant details on the cover page

Price schedules & CPA Note: some rows and columns that appear in the Excel file are hidden in the above extract 8 Tenderers to enter Unit Price into column F excl VAT Tenderers to Enter CPA per line item: 1.Use drop-down list to select applicable CPA formula per line item into column H 2.Default is “Fixed’ - if left unchanged, offer is Fixed and Firm CPA Formulae are updated in sheet “CPA” COLUMN:EFGHI

9 Contract Price Adjustment (CPA) What is CPA? CPA is a mechanism used to track the movement of a contractor’s costs over the Contract period to provide reasonable reimbursement for price fluctuations. CPA determinations are calculated using a pre-determined formula based on the assumed cost drivers of a particular product or service and a recognised index-based system which tracks those cost movements over a period of time. Prices will be fixed for first year and thereafter CPA will apply from anniversary of contract onwards. Separate CPA invoices are submitted for each base invoice once CPA applies ie CPA is not a price increase updated on the contract but rather a price adjustment based on the movement in the applicable index vs the base index

10 Contract Price Adjustment (CPA)………………contd 15% Fixed Portion minimum Balance (e.g. 85%) makes use of relevant indices Sum of indices adds up to 100% No in-house indices allowed Proposed indices must be reflective of cost structure Final applicable CPA formulae may be negotiated with successful tenderers

11 Per Formula (A to J) Submitted, the Tenderers must Enter: 1.Description of CPA Formula 2.For the balance of indices (e.g. 85%) making up each formula: % Weights (add up to 100% including minimum 15% Fixed portion) Description Definition from publisher Base month and Index plus Historical data See notes: CPA) Note: some rows and columns that appear in the Excel file are hidden in the above extract CPA Formulae

Note: some rows and columns that appear in the Excel file are hidden in the above extract Prescribed indices 12 Tenderer to enter from the Prescribed index worksheet the following in the CPA formulae workbook : Description Publishing index Full title of index

Final Note: some rows and columns that appear in the Excel file are hidden in the above extract 13 Final Summary This schedule provides a summary of the total value of all the sections and remains the responsibility of the contractor to ensure the accuracy of the amount carried to the summary.

Other matters Printing settings for all documents are to be adjusted according to tenderer’s printer Tenderers to please complete the Excel Pricing Schedule, included on the tender bulletin. The pricing schedule must be submitted in electronic copy (Excel format) on a compact disc (CD) as indicated. The hard copy must be submitted and signed by the authorised signatory. 14

Thank you