DD 6101/TS POLE REPLACEMENT, RSI MAINTENANCE AND EMERGENCY ELECTRICAL & DD6102/TS RSI MAINTENANCE Date12 June 2014

12 June Agenda DescriptionResponsibility Opening & WelcomeThabile Sibiya Evacuation & Safety Venue Co-ordinator CommercialThabile Sibiya TechnicalIan McFadden SHESthe Ngcamu QualityAnand Mahabeer SD & LThandi Dlamini QuestionsAll ClosureThabile Sibiya

Background  PREQUALIFICATION, NO PRICES  PANEL CONTRACT  AS AND WHEN REQUIRED BASIS/PURCHASE ORDERS  DD6101/TS-IAN MCFADDEN (FIELD SERVICES)  DD6102/TS-NONHLANHLA CELE (MAJOR MAINTENANCE)  FOLDERS ON THE TENDER BULLETIN 12 June 20143

COMMERCIAL PRESENTATION Presenter: Thabile Sibiya 4

KEY DATES DD6101/TS  DEADLINE: 25 JUNE 2014  TIME: 10H00  VALIDITY: 20 WEEKS  DEADLINE FOR CLARIFICATION: 3 DAYS BEFORE TENDER DEADLINE DD6102/TS  DEADLINE: 27 JUNE 2014  TIME: 10H00  VALIDITY: 20 WEEKS  DEADLINE FOR CLARIFICATION: 3 DAYS BEFORE TENDER DEADLINE 12 June 20145

ENQUIRY DETAILS  Tenders marked as follows: “CONFIDENTIAL” Eskom Holdings SOC Limited, Commercial Build, Att: Nerash Singh, 25 Valley View Rd, New Germany.  Tender Office situated at Commercial Building Complex, 25 Valley View Road New Germany.  NO late tenders will be accepted! 12 June 20146

ENQUIRY DETAILS…… Contin  Each submission to be clearly identified as an ORIGINAL OR COPY Company name and DD Number.  NO LEVER ARCH FILES, Submissions to be packaged in such a that they will fit into the slots and can be structured as follows: Part A –Commercial Returnable Documents (including SD&L) Part B – Technical Returnable Documents Part C – SHE Returnable Documents Part D- Quality Returnable Documents 12 June 20147

ENQUIRY DETAILS…… Contin  Submissions to be bound up, no loose papers  All enquiries to be addresses to the Buyer in writing.  All clarifications will be answered in writing and will be made available on the Eskom Tender Bulletin website: n/search.asp n/search.asp 12 June 20148

EVALUATION METHOD-PPPFA  3-STEP PROCESS Stage 1: Functionality Stage 2: Financial Analysis Stage 3: Standard and Implementation Evaluation.  Price not evaluated according to 90:10 principle: standard rates to be negotiated. 12 June 20149

GATEKEEPERS/MANDATORY REQUIREMENTS  A gatekeeper is a non negotiable requirement which is required to be met. In the event that this is not met, the tender returnable will be deemed to be unacceptable and no further evaluation will be conducted.  CIDB Registration-EB/EP Category of Works  Electrical Contractor Board Registration 12 June

Stage 1:FUNCTIONALITY  TECHNICAL (40 Points) Annexure B A penalty system will be applied for the technical aspects where 10 points will be deducted for any requirement partially met, and 15 points deducted for any requirement that has not been met.  SHE (30 Points) Annexure C An all or nothing approach is to be applied. The tenderers are therefore required to meet the full requirements in order to achieve the total weight of 30 points. 12 June

Functionality…..contin  QUALITY (30 Points) Annexure D An all or nothing approach is to be applied. The tenderers are therefore required to meet the full requirements in order to achieve the total weight of 30 points TOTAL=100 POINTS Tenderers will be required to meet a minimum threshold of 75 to progress to stage 2. Failure to meet the minimum threshold will result in the tenderer not being evaluated further. 12 June

Stage 2: FINANCIAL ANALYSIS An analysis of the tenderers financial statements will be conducted for the purposes of establishing the tenderers financial viability and ability to meet all of its contractual obligations for the duration of the contract, should the tenderer be awarded the contract.  Not traded/ do not have financial statements:  To submit a Lists of all assets owned / the amount owing on the asset in order for the Business Risk Analyst to make a decision regarding the contractors financial viability 12 June

Stage 3: Standards and Implementation  All the contractors that have met the requirements for stage 1 and stage 2 will be further evaluated by Standards and Implementation Section for final approval to be included in the final panel list. As and when Standards and Implementation Section approves the contractors, they will be added to the panel.  However, all previously approved contractors (supporting documents in place) will be contracted with immediately, while new companies and companies that have never been evaluated in this category of works and where there is no proof supporting their qualification, the contractors will undergo a site evaluation and assessment by the Standards and Implementation Section. 12 June

PART A-COMMERCIAL DOCUMENTS NoReturnable Document / Schedule Compulsory for Evaluations Compulsory for Contracting A1Cover sheet of the Invite to Tender (Page 1) A2Acknowledgement Form behind T1.1 Invitation to Tender (returned within 5 working days of receipt of tender documents ) [Page 3-5] A3Eskom Standard Conditions of Tendering A4Authorisation Form 15

A5Original and valid SARS Tax Clearance Certificate A6Proof of CIDB Contractor Registration A7Valid B-BBEE Certificate from an Accredited Verification Agency or Letter from the Audit /Accounting Officer A8Declaration Regarding Fair Bidding Practices 12 June

A9Evaluation Questionnaire to Determine whether a Company, Close Corporation (CC) or Trust is a Personal Service Provider for Purposes of PAYE A10Declaration of Shareholding and Directorship 12 June

A11To the extent that the tenderer falls within the definition of a “designated Employer” as contemplated in the Employment Equity Act 55 of 1998, the tenderer is required to furnish the Employer with proof of compliance with the Employment Equity Act, including proof of submission of the Employment Equity report to the Department of Labour 12 June

12 June A12Audited Financial Statements of the tenderer for the previous two financial years, or to the extent that such statements are not available, for the last year. A13Suppliers Declaration of Interest A14Signed Acknowledgement Form- Localisation Compliance Matrix A15Signed acknowledgement -List of Eskom Policies and Procedures related to the Tender List of Eskom Policies and Procedures related to the Tender

TECHNICAL REQUIREMENTS- Part B 12 June  Presented By: Ian McFadden Based on the following requirements: 1.Staff/Skills/Training 2.Tools and Equipment 3.Vehicles REFER ANNEXURE A

SHE REQUIREMENTS-Part C Presented By: Sthe Ngcamu Based on the following requirements from document 1.Acknowledgement for Eskom’s rules and requirements 2.Health and Safety Plan 3.Vehicles 4.Valid Letter of Good Standing 12 June

SHE REQUIREMENTS…CONT 5.Medical 6.Performance records 7.Competency 8.Costing for Health and Safety ANNEXURE B 12 June

QUALITY REQUIREMENTS: Part D  Submission of a Valid ISO Accredited Certification. Alternatively, compliance to the ISO 9001:2008 Quality Management System, must be submitted for evaluation purposes: 1.Quality Manual incl 6 Mandatory procedures) 2.Procedure for the Control of Documents 3.Procedure for the Control of Records 12 June

QUALITY REQUIREMENTS: Part D… CONT 4.Procedure to manage Non-Conformance, Corrective Action and Preventative Action 5.Procedure – Purchasing including control of Contractors, Sub Contractors, Storage & Preservation 6.Quality Policy Statement – duly signed and dated by the company’s Executive 7.Contract Quality Plan – either scope specific or previous similar project 12 June

QUALITY REQUIREMENTS: Part D..CONT 8.Inspection Test Plan – either scope specific or previous similar project 9.Preliminary Risk Assessment – scope specific or similar project 10. Curriculum Vitae of the Company’s Quality Management Representative 12 June

QUALITY…CONT  An all or nothing approach is to be applied. Failure to adhere to any of the above requirements will render the tender submission as non-compliant The following is not to be printed for submission with the tender 1.Examples of documents & quality policy document 2.QM58 Suppliers Contract Quality Requirements Specification 12 June

SD & L REQUIREMENTS  Eskom intends to improve Skills Development by ensuring that technical support is directed towards enhancing supply capacity and capability within the industry or sector of operation.  By doing this the capacity and competitiveness of the local supply base will be increased and the goals of shared growth, employment creation, poverty reduction and skills development will be achieved. Tenderers are encouraged to propose Skills Development initiatives in terms of the Skills required for these projects. These will form part of the contractual obligation with the successful contractor. 12 June

12 June Targets: WoodPole Replacement Skill typeEskom’s target Tenderers proposal N1 to N6 Electrical College 2 SAMTRAC Training2 EC1 Driver Training2

Targets: RSI Maintenance Skill typeEskom’s target Tenderers proposal N1 to N6 Electrical College 2 SAMTRAC Training2 EC1 Driver Training2 ORHVS2 29

Targets: Emergency Electrical Skill typeEskom’s targetTenderers proposal N1 to N6 Electrical College 2 SAMTRAC Training2 EC1 Driver Training3 ORHVS3 12 June

Targets: RSI Maintenance (Major Maintenance) Skill typeEskom’s target Tenderers proposal N1 to N6 Electrical College 2 SAMTRAC Training1 EC1 Driver Training2 ORHVS2 12 June

SD & L REQUIREMENTS…CONT  The Tenderer is to provide the individuals in specified trades identified above with sufficient on the job and other skills training in the specified trade or discipline to:  achieve the outcome of passing a trade test and qualifying as an artisan, or the equivalent for any of the required skills and accordingly to be certified to that level; or (as applicable)  Generally be regarded, when there is no industry standard test or certification for the trade or discipline in question, as being employable in that trade or discipline. 12 June

Thank you