PRE-QUALIFICATION TENDER FOR THE PROVISION OF ENVIRONMENTAL SERVICES 11 JULY 2014

Agenda Welcome Esther Seshabela Safety TBA Technical Kentridge Makhanya Quality Sipho Sambo SHE Diane Maunatlala SD&L Ishmael Modiko ProcurementEsther Seshabela 11 July 20142

Environmental Services Technical Criteria

Required Services Scoping - EIA Basic Assessments Environmental Compliance Environmental Audits Environmental Protection Environmental Permits Environmental Specialized Services

Our Business - Projects

Criteria The appointment of service providers will be in the form of a panel and the panel structure will consist of four panels (A, B and C or Specialist) which are allocated to suppliers according to their capability.

2016/06/137 Key Performance IndicatorsPanel APanel BPanel CSpecialists Experience of the company/key resources 15 + years years years 10 years 9 years 8 years 6-7 years 5 years 5 years 4 years 2-3 years 1 year years years 6-10 years 5 years Projects experience (Number of projects successfully completed by company) 16 + Projects completed projects completed projects completed 9-11 projects completed 5-8 projects completed projects* 9-11 projects* 5-8 projects* 2-5 projects* 1 project* 11 + projects* 8-11 projects* 5-8 projects* 2-5 projects* 1-2 projects* 14 + projects* projects* 9-11 projects* 5-8 projects* 3-5 projects* Capacity or Professional Registration 30 + employees employees employees employees 6-9 employees employees employees employees 6-9 employees 2-5 employees employees employees 6-9 employees 2-5 employees 1 employees Natural Science Geographical footprint 7+ provinces 6 provinces 5 provinces 4 provinces 3 provinces 6 provinces 5 provinces 4 provinces 3 provinces 2 provinces 5 + provinces 4 provinces 3 provinces 2 provinces 1 province 5 + provinces 4 provinces 3 provinces 2 provinces 1 province Client list (References) 14 Plus clients clients 9-11 clients 6-8 clients 5 clients Clients 9-11 Clients 6-8 Clients 3-5 Clients 3 Clients clients 9-11 clients 6-8 clients 3-5 clients 1-3 clients 14 clients clients 9-11 clients 6-8 clients 3-5 clients Project/s* mean completed projects Where do I fit in?

Thresholds Tenderers are expected to meet an overall technical threshold indicated for each panel in order to be pre-qualified and proposals that fail to achieve the minimum qualifying score will be disqualified. See table below for the technical weighting and minimum thresholds to be achieved for each panel.

Thank you

Procurement (Tender Process) The tender procurement process will include the following major phases: Pre-qualification Stage (Technical) Question and answers directed through a single communication channel Clarification responses in open forum – Eskom tender bulletin Submit on or before closing date & time at Tender Office Evaluation Stage Short listing of tenderers based on the Functional Analysis ( Technical) Proposals will be required to meet thresholds as per panel category Shortlisting RFQ (Rates, SD&L & SHEQ) Evaluations Contract award 11 July

Procurement 1. Deadline for Clarification questions - 30 July Deadline for tender submission 05 August 10H00 South Africa Standard Time 3. Delivery of the tender submission Various tender boxes as indicated on the RFP (page 6-7) Suppliers must indicate the CORP Number of the tender box 3. Tender Returnables All listed documents to be submitted by closing date Suppliers must indicate the panel category tendered for 4. Number of tender documents to be submitted The tender shall be submitted in 2 copies: (1) printed original, (1) copy of the original 11 July

Thank you

Supplier Quality Requirements Environmental Service Date: July 2014 Presenter: Sipho A Sambo

2016/06/ /06/13 QM-58 Supplier Contract Requirements” The purpose of the Eskom Quality specification is to define the requirements by which Contractors and Suppliers shall manage, implement, maintain and continually improve a Quality Management System (QMS) based on ISO 9001:2008. The intention is that Contractors and Suppliers should continuously adhere to Eskom’s Quality requirements in respect of the supply of products and related services. QM-58 Shall be implemented on all new contracts, and extensions to existing contracts. QM-58.pdfQM-58.pdf

2016/06/ /06/13 Process Flow of QM-58 Specification

2016/06/1316 Section A (Option 1): QMS Requirements- ISO 9001 Certificate Clause No (QM-58) Evaluation Criteria/ Required DocumentsYes= 1 and No= a5A.1Product / Service Scoping on ISO certificate is defined and relevant1 A.2Certificate by Approved and Authorized certification authority1 A.3Certification Authority is has Recognized International Accreditation1 A.4 Validity (expiry date) of certificate1 Section A (Option 2): QMS Requirements- Objective evidence of a documented QMS that is not certified a5A.1Quality Manual (including ISO 9001 mandatory procedures)1 A.2Copy of Quality Policy signed by top management.1 A.3Procedure for Control of Documents1 A.4Procedure for Control of Records1 A.5Internal Audits Procedure1 A.6Procedures for Control of Nonconforming product or services1 A.7Corrective Action Procedure1 A.8Preventive Action Procedure.1 Quality Evaluation Criteria and Documents for Submission

2016/06/1317 Section B: Evidence of QMS in Operation Clause No (QM-58) Evaluation Criteria/ Required DocumentsYes= 1 and No= a4B.1Copy of CV of Quality Representative for the project a6B.2Signed Organisational structure & Quality dept. reporting structure a13B.3Additional Quality Management Accreditations (i.e. NDT/NDE/RBI/Welding) a12B.4Copy of procedure for control of suppliers & subcontractors a9B.5Copy of Completed non-conformance report (NCR) a10B.6Copy of Completed Corrective Action report (CA) a10B.7Copy of Completed Preventative Action report (PA)1 B.8Copy of Customer satisfaction surveys a8B.9Copy of a Quality Plan (incl ITP's) on previous project < 2yrs a7B.10Historical Information (list) of similar work performed < 2yrs1 Quality Evaluation Criteria and Documents for Submission

2016/06/1318 Section C: Contract Quality Plan as per Scope of Works (Ref ISO 10005) Clause No (QM-58) Evaluation Criteria/ Required DocumentsYes= 1 and No= C.1Supplier identified the persons responsible for drafting the PS1 C.2Scope of PS is complete, as description in the Works Information.1 C.3Allow for acceptance of PS by Employer (meeting Quality objectives)1 C.4Preliminary Management authority & responsibility Matrix submitted1 C.6Control of Quality Records- process to complete, keep & dispose1 C.8Allow for Customer Requirement reviews / specifications adjustments1 C.9Setup communication channel on quality issues1 C.11Purchasing- Submit a list of all suppliers and subcontractors.1 C.14Describe Procedures in dealing with Customer property1 C.16Supply draft Concession request for Non-conforming products1 Section D: ITPN/A Section E: Quality Requirements for ISO series and QM a1 &a2E.1Complete and sign Form A and B1 Quality Evaluation Criteria and Documents for Submission

2016/06/1319 The supplier shall submit the following quality documentation with the tender: 1)Signed form A 2)Signed form B 3)Detailed CV of the supplier Quality Management Representative. 4)Copy of ISO 9001:2008 certification OR objective evidence of a QMS that complies with ISO 9001:2008 (QM Manual and six mandatory procedures). 5)Copy of contractors organisational structure indicating QMR position. 6)Historical information register on similar work carried out. 7)Draft CQP that fully complies with ISO standard, and Eskom template (QM 58 Appendix C) Documents for Submission

2016/06/ /06/13 8)Closed out and completed product / process Non- conformance report. 9)Completed and closed out internal audit Corrective Action Report. 10)Completed and closed out Preventive Action Report. 11)A copy of procedure for control of suppliers. Quality Evaluation Criteria and Documents for Submission

2016/06/ /06/13 Summary of Procurement Quality Assurance Process 1)Supplier submits Quality documentation with a tender. 2)Suppliers Quality documentation submitted with tender complies with QM-58 requirements. 3)CQP is implemented by Supplier and monitored by Eskom for the duration of the contract.

Eskom reserves the rights to  Perform supplier technical and quality capability assessments on all potential suppliers in order to determine all quality and technical risks associated with a specific contract, process, commodity, project or service.  Perform audits on all suppliers, contractors and subcontractors who have been awarded a contract. These post contract audits shall be carried out, in accordance with Eskom's supplier, contractor audit schedule

23 SHE Requirements Environmental Service Presented by : MD Maunatlala SS: COHS

Eskom’s Core Values: ZERO HARM 2016/06/1324 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

Contractor SHE Returnables Contractor Risk Category: Low Risk (Objective criteria) Non- negotiable minimum requirements that tenders have to address and respond to when submitting tender returnable for evaluation are A baseline Risk Assessment Acknowledgement of Eskom’s rules and requirements Health and Safety Plan Valid Letter of Good Standing SHE Policy 25

Baseline Risk Assessment The purpose of conducting a baseline HIRA 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 HIRA in the future. 26

Eskom 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 form that is Annexure B 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 These are not tender returnables the are only there for guidance and reference purposes 27

SHE Plan and Details A detailed SHE plan which 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 28

Valid letter of Good Standing It is essential to ensure that all suppliers that perform work on 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 the above mentioned the supplier needs to produce a letter of good standing with the Compensation Commissioner. Based on Legislation in section 89, of the Compensation for Occupational Injuries and Diseases Act In order to ensure the above mentioned the supplier needs to produce a letter of good standing with the Compensation Commissioner. 29

SHE Policy 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. A health and safety 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 employer should create a policy that is suitable and sufficient in order to address the health and safety need of the company. 30

31