Tender Clarification Meeting for Batteries: CORP3320 Date: 18 September 2015

2 Housekeeping Rules

Key Topics and Presenters Purpose and introduction Commercial requirements-Musiiwa Gidi Quality requirements- Musiiwa Gidi/Pamela Dondashe Safety, Health and Environmental requirements-Punky Mhlongo Supplier Development and Localization requirements- Rojane Qacha Technical Requirements-Thomas Jacobs/Christo Van Zyl 3

The purpose of the clarification session 4

Tender CORP Tender closing date- 9 October 2015 Closing date for clarification of queries -2 Oct 2015 NEC3 ECC Contract type Tender may be submitted for the whole scope or part Tender shall be submitted The tender shall be submitted as:  two (2) hardcopies, being an original and one (1) copy, Failure to submit a original tender plus 1 complete hard will lead to the tender being declared non-responsive i.e it will not be evaluated further.  as well as three (3) identical CD’s containing all the tenderer’s documents in electronic format. The original and hard copy of the tender must be clearly divided into the following sections: Commercial L (As per Commercial Tender Returnables) SD&L (As per SD&L Tender Returnables) Finance (As per Finance Tender Returnables) Technical (As per Technical Tender Returnables) Quality (As per Quality Tender Returnables) SHE (As per SHE Tender Returnables)

Tender details Ref NumberDescriptionClosing dateClosing time CORP 3320Batteries09 October :00 AM 6 The tender shall be addressed to Eskom Holdings SOC Limited as follows: Eskom Holdings SOC Limited Megawatt Park Maxwell Drive Sunninghill Sandton South Africa, 2157 The place for delivery of the tender is Eskom Holdings SOC Limited's Tender Box located at : Tender Advice Centre in the main reception area opposite the Main Reception Desk, Eskom Megawatt Park, 1 Maxwell Drive, Sunninghill, 2157

Commercial requirements Evaluation Method Step 1 - Basic Compliance Review tender submission for compliance to all submission requirements. Tenders which do not meet the basic compliance requirements will not be evaluated further Step 2 - Functional Analysis Step 3 - Price and Preference Analysis (90/10) Price evaluations and apply prescribed formula (Annexure in the invitation to tender doc) and determine points for price; Add points for BBBEE as per prescribed table Achieve total points and derive ranking (Highest ranked to lowest ranked) Negotiations of objective criteria’s and contract award 7 Functionality CriteriaMaximum %Tenderers will be expected to score at least the minimum threshold per functional area to proceed to the next step Technical40%80% Safety, Health & Environment 30%100% Quality30%100% Total100% Overall threshold 92%

Commercial returnables 8 Commercial Mandatory for evaluation Mandatory for contract award The cover sheet √ Scope Indication form √ Declaration of fair bidding form √ Supplier declaration of Interest Form √ Confirmation of receipt of addenda to tender documents √ Declarations of Shareholding or Beneficiaries (Provide Entities or persons who are shareholders (number of shares of shareholding percentages) in bidding entity). √ Authority to submit tender form √ Non-Disclosure Agreement (NDA) for Vendors √ Original and valid SARS Tax Clearance Certificate √ Price Schedule √√ Foreign Procurement Shipping Information √√ CPA Strategy √√ Standard Conditions of Tender √√ Vendor Registration Form (If not a registered vendor) √

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Quality Requirements By M Gidi / Pamela Dondashe

Quality Requirements - Functionality criteria Yes/ No Quality documentation to be submitted with tender (QM-58) Ref Clauses score QUALITY MANAGEMENT SYSTEM (QMS) 30 Y Option 1 The tenderer shall attach a copy of ISO 9001:2008 certification (for Item Manufacturers), or Option 2 objective evidence of a QMS that complies with ISO 9001:2008 (Signed Quality Policy, 6 mandatory Procedures; Quality Manual with method statement); CUSTOMER DEFINED REQUIREMENTS 10 YThe tenderer shall complete and sign form A YThe tenderer shall complete and sign form B QMS

E.1 Annexure (A and B) is completed and signed Form A - NB: The Contractor/ Supplier/ Service Provider must complete and sign this form to acknowledge and accept Eskom Supplier Quality Requirements as per ISO 9001 Standard. Form B - NB: The Contractor/ Supplier/ Service Provider must complete and sign this form to acknowledge and accept Eskom Supplier Quality Requirements as per QM 58 Specification. 12

Quality Objective criteria Yes/NoQuality documentation to be submitted with tender (QM-58) Ref Clauses score QUALITY MANAGEMENT ORGANIZATION & HISTORY Y The tenderer shall attach a copy of the CV / Resume of the tenderers Quality Management Representative Y A copy of the latest structure / organogram of the quality function, including an abridged indication of qualifications of personnel. This structure shall indicate to whom the organizations quality management representative reports in the organization Y The contractor shall attach a copy of their procedure for the control of suppliers as per ISO 9001 : 2008 Clause N The contractor shall attach a copy of any QMS accreditations related to Scope of Work Y The tenderer shall attach information on similar work performed ( design, manufacture at works, testing, quality assurance, delivery to site or stores, off-loading, erection, commissioning, de-commissioning and disposal of valve regulated lead acid cells, vented flooded lead acid cells, semi-sealed nickel cadmium cells, battery stands and battery cabinets, and all accessories) Y The tenderer shall attach up to 5 copies of typical customer satisfaction surveys / questionnaires as per the requirements of ISO clause Y The tenderer shall attach a typical sample of a completed and closed out non-conformance report (NCR). (they submit a template NCR or give an indication of how customer complaints are handled by the company) Y The tenderer shall attach a typical example of a completed and closed out corrective action report, (they submit a template CAR or give an indication of how customer complaints are handled in terms of responsibility, acknowledgement, investigations made; actions taken and feedback to customer to resolve the reported defect or complaint)

Quality Objectives criteria continues… Yes /No Quality documentation to be submitted with tender (QM-58) Ref Clauses Score CONTRACT QUALITY PLAN (scope specific ) Y The tenderer shall submit a draft contract quality plan (CQP)/ checklist or Method statement with the tender. Refer to Annexure C of QM58 (pages 49 to 52). The CQP will be applicable to this tender and aligned with the processes in the quality procedure manual Y Supplier identified the persons responsible for drafting the CQP/PQP Scope of CQP/PQP is complete, as description in the Works Information. Allow for acceptance of CQP/PQP by Employer (meeting of Quality objectives) Preliminary Management authority & responsibility Matrix submitted Control of Quality Records- process to complete, keep and dispose records. Allow for Customer Requirement reviews / specifications adjustments Setup communication channel on quality issues (fixed contract meetings) Describe Procedures in dealing with Customer property QUALITY CONTROL PLAN (scope specific ) Y The tenderer shall submit a draft quality control plan (QCP) with the tender. Refer to Annexure I of QM58 (page 58) that include all major inspection and hold points for any witnessing or approval of design reviews, tests and inspections Y Inspection and test plans well - structured and designed per activity Index of all standards, specifications for all processes, products & materials. QCP has recorded a sequence of witness/verification points Proposed schedule of test and verification hold points recorded on QCP N The tenderer shall attach a typical example of a completed and closed out corrective action report, (they submit a template CAR or give an indication of how customer complaints are handled in terms of responsibility, acknowledgement, investigations made; actions taken and feedback to customer to resolve the reported defect or complaint)

Quality tender returnable 15 Quality Mandatory for evaluation Required for contract award Product / Service Scoping on ISO 9001:2008 certification (signed quality policy, 6 mandatory procedures; quality manual with method statement √√ Completed and signed customer defined requirements form A √√ Completed and signed customer defined requirements form A and B √√ Copy of CV of the tenderers Quality Management Representative √ Copy of latest structure of quality function √ Copy of procedures for their control of suppliers as per ISO 9001:2008 Clause 7.4 √ Quality information on similar work performed √ 5 copies of typical customer satisfaction surveys √ Typical sample a completed and closed out non- conformance report (NCR) √ Typical example of a completed and closed out corrective action report (CAR) √ Draft contract quality plan (CQP) checklist or method of statement √ Draft Quality Control Plan (QCP) √

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SHE Requirements By Punky Mhlongo

Skills Development and Localization (SD&L By Rojane Qacha

Batteries Enquiry Technical Requirements Corp 3320 September 2015 Thomas Jacobs

20 Content of the presentation Enquiry OverviewTechnical Gate Keepers – Level 1Technical Evaluation – Level 2Completing and Submission of the Schedules

Enquiry Overview Scope –The design, manufacture at works, testing, quality assurance, delivery to site or stores, off-loading, erection, commissioning, de-commissioning and disposal of valve regulated lead acid cells, vented flooded lead acid cells, semi-sealed nickel cadmium cells, battery stands and battery cabinets, and all accessories Technical Documents Schedules Enquiry Boardroom Factory EvaluationsReports

Technical Gate Keepers – Level 1 All tenderer information provided in the electronic spreadsheets provided. All required documentation available in electronic format (including drawings ) Formal OEM - agent agreement provided and compliant with requirements Detailed track records for all offered equipment. (Companies, contact details, sites, etc.) Offered warrantees Tenderers shall have a permanent South African office with a minimum 3 year track record for supply and support of standby batteries. Advanced-level support shall be available from the South African office on all tendered products for the duration of the contract. All battery cabinets and stands must be manufactured locally. 22

Technical Evaluation – Level 2 Acceptable Technical Risks –No local Eskom track record –Full required range not available Unacceptable Technical Risks –No local regional track record –Non-compliance to type test requirements –No OEM support letter –Use of non-Eskom approved sub- contractors Unacceptable Technical Conditions –No charging facilities –No test equipment details –No qualifications of support staff provided –Transportation certificates not available –HAZMAT Agreement not available Boardroom Evaluation Subcategories Risk Factory Minimum threshold is 80% Technical evaluation accounts for 40% of the Functional Analysis (SHE = 30% and Quality = 30%)

Completing and Submission of the Schedules Optimise the use of Interrow-connectors, Terminating devices and Battery stands where possible to limit the number of unique items required Please submit printed copies of all only the completed Schedules as physical proof of your submission and responses. 24

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