BID BRIEFING: COR50/2017 REQUEST FOR BIDS FOR THE AWARDING OF VARIOUS CAR RENTAL CONCESSIONS CONCESSIONS FOR A PERIOD OF TEN YEARS THROUGH AN OPEN PUBLIC TENDER

Contents 3 6 9 14 26 WELCOME AND INTRODUCTION BID OUTLINE BID OPPORTUNITIES 9 BID RESPONSES 14 EVALUATION APPROACH 26 QUESTIONS

1. BID OUTLINE 1.1. OBJECTIVES OF THE BID 1.2. HOW THE BID WILL ACHIEVE THESE OBJECTIVES

1.1. Objectives of the bid The primary objects are to: Attract Best of Breed Operators and Brands Achieve ACSA’s transformation objectives

1.2. HOW THE BID WILL ACHIEVE THE OBJECTIVES Provide more opportunities than world norms( up to 10 opportunities ) Term of tender is 10 years Supports Transformation through: Prequalification criteria on equity and black management 50 / 50 point allocation Bidders to maintain and improve to targeted BBBEE supplier throughout lease Level the playing field by having differentiated rentals for kiosks and bays Providing all operators at the international airports with bays linked to their kiosks ACSA ‘s ESD partner to support suppliers in the value chain to become competitive.

2. Bid opportunities 2.1. The Opportunities 2.2. BID RENTAL TERMS

2.1. The opportunities For the purpose of this RFB there are a total of seventy-one (71) opportunities namely: Airport No. of operators and kiosks 3.8.1 O.R.Tambo International Airport 10 3.8.2 Cape Town International Airport 3.8.3 King Shaka International Airport 3.8.4 Port Elizabeth Airport 8 3.8.5 East London Airport 7 3.8.6 George Airport 3.8.7 Bram Fisher Airport 3.8.8 Kimberly Airport 6 3.8.9 Upington Airport

2.2. BID RENTAL TERMS Bidders must bid separately for kiosks and parking bay Bidders cannot bid for only a kiosk, or only for parking bays The rates for the kiosks and parking bays are indicated for every airport opportunity, eg ORTIA Cape Town and PE will be extending their buildings and Bidders are required to bid for the amount of square metres they require. The building project will only commence after confirming demand through the bid awards and arrangements will be made with the successful bidders on beneficial occupation dates. Minimum rentals will escalate by 8% p.a. Kiosk number sqm Minimum monthly rental (R ) Minimum number of bays Kiosk 1 425.00 327 185 250 Kiosk 2 281.00 216 119 150 Kiosk 3 123.00 94 959 75 Kiosk 4 100.00 39 836 50 Kiosk 5 60.00 23 824 25 Kiosk 6 50.00 20 000 Kiosk 7 30.00 12 000 Kiosk 8 82.00 63 136 Kiosk 9 Kiosk 10 315.00 242 536 200

2.2. BID RENTAL TERMS Minimum rentals will escalate by 8% p.a. The minimum monthly rental rate per parking bay is the following: for parking bays, up to 50 bays, the minimum rate per bay is R2,250.00 for parking bays between 51 bays and up to 100 bays, the minimum rate per bay is R2,750.00 for parking bays between 101 bays and up to 150 bays, the minimum rate per bay is R3,250.00 for parking bays between 151 bays and up to 200 bays the minimum rate per bay is R3,500.00 for parking bays between 201 bays and up to 300 bays the minimum rate per bay is R3,750.00 for parking bays, more than 301 bays, the minimum rate per bay is R4,000.00 Minimum rentals will escalate by 8% p.a.

3. BID RESPONSES 3.1. response formats 3.2 bid timelines

3.1. Response format Bidders are required to bid separately for each kiosk. Bidders are encouraged to bid for more than one kiosk, and to include their preferred kiosk in the event they are ranked the highest for more than one kiosk. Bidders should ensure there is a relationship between the size of kiosk they bid for to the number of parking bays requested. The minimum number of parking bays have been set for each kiosk. The minimum rate per parking bays are stated for each airport. Bidders will be required to pay an additional monthly top-up rental should the percentage turnover rental on time and mileage revenue be greater than the minimum monthly guaranteed rental of the parking bays. The percentage of turnover rental is set at 9% of the time and mileage revenue. Bidders are permitted to recover these costs as a surcharge on their invoice. This percentage should not exceed 9% of the time and mileage amount.

3.2. BID TIMELINES DESCRIPTION DATE Bid Invitation 5 September 2017 Non-compulsory Briefing Sessions 11 September 2017 Enquiries Closing Date 13 October 2017 RFB Submission Closing Date 1 November 2017 at 14h00 Anticipated Concession Start Date 01 April 2018

3.3. REQUESTS FOR CLARITY Email Address: Cor50_17.Tender@airports.co.za Contact: Leslie Young 011-723 1400 Responses to Requests for Clarity will be: Posted onto eTender Portal on National Treasury Website Emailed to all attendees registered at any of the bid brief sessions Emailed to those who have forwarded questions through in relation to the bid

4. evaluation approach STAGE 1 PRE-QUALIFICATION CRITERIA MANDATORY ADMINISTRATIVE REQUIREMENTS STAGE 2 FUNCTIONALITY STAGE 3 PRICE AND B-BBEE STAGE 4 TRANSFORMATION IMPERATIVES

Stage 1: pre-qualification criteria Based on the Tourism Sector Charter: Large Entities: Proof to be provided in the form of a comprehensive B-BBEE report Transformation Element Criteria Ownership At least 30% of exercisable voting rights in the enterprise in the hands of black people At least 15% of exercisable voting rights in the enterprise in the hands of black women Enterprise and Supplier Development (car rental sector purchases vehicles for foreign owned OEM’s, therefore car purchases themselves is excluded from calculation) At least 40% procurement spend (excluding procurement of motor vehicles) from suppliers that are at least 51% black owned At least 12% procurement spend (excluding procurement of motor vehicles) from suppliers that are at least 30% black women owned Management Control (aligned to ownership) At least 30% Black executive management as a percentage of all executive management within the car rental division of the entity At least 15% black female executive management as a percentage of all executive management within the car rental division of the entity At least 2% black employees with disabilities as a percentage of all employees

Stage 1: pre-qualification criteria Based on the Tourism Sector Charter: QSE’s: Proof to be provided in the form of a comprehensive B-BBEE report Transformation Element Criteria Ownership At least 30% vote of exercisable voting rights in the enterprise in the hands of black people At least 15% of exercisable voting rights in the enterprise in the hands of black women Enterprise and Supplier Development At least 30% procurement spend (excluding procurement of motor vehicles) from suppliers that are at least 51% black owned Management Control (aligned to ownership) At least 30% black executive management as a percentage of all executive management At least 15% black female executive management as a percentage of all executive management

Stage 1: MANDATORY ADMINISTRATIVE REQUIREMENTS The following Mandatory Requirements shall apply: Submission of an original, valid SARS Tax Clearance Certificate / PIN / Proof of application with SARS Bidders must meet the specified minimum monthly guarantee Bidders must meet the specified turnover percentage Bidders must agree to ACSA’s RFB Terms and conditions Bidders must sign to accept all declarations in this RFB document

Stage 2: functionality Bidders must score the minimum score per sub-section DETAILED BUSINESS REQUIREMENTS WEIGHTING MINIMUM THRESHOLD Car Rental Concept 20 12 points Market Potential 5 3 points Customer Service Philosophy Kiosk Design Operations Funding and Financial Plan 13 points

Stage 3: PRICE & B-BBEE Total available points for Preference (B-BBEE) and Price allocated as follows: 50 Points will be allocated to Price 50 Points will be allocated to B-BBEE

Stage 3: PRICE 50 Available points for Price allocated as follows: 20 Points will be allocated to Minimum Monthly Rentals for Kiosks Based on Fixed Minimum Monthly Rentals bid in Month 1 of Year 1 Shall not be less than the specified minimum monthly rentals Highest offer per opportunity will receive 20 points 30 Points will be allocated to Minimum Monthly Rental for Parking Bays Highest average minimum monthly rental per parking bay will receive 30 points

Stage 3: b-bbee DEFINITIONS: Large Entity Shall mean an entity with an annual turnover in excess of R 50 (fifty) Million Qualifying Small Enterprise (QSE) Shall mean an entity with an annual turnover of between R 10 (ten) Million and R 50 (fifty) Million Emerging Micro Entreprise (EME) Shall mean an entity with an annual Total Revenue of R 10 Million or less

Stage 3: B-BBEE 50 Available points for B-BBEE (based on Sector Charter) allocated as follows: Large Entities Scorecard: The total points scored by the bidding entity out of the available 111 points will be converted to 50 points Eg. A Large Entity scoring 100 points out of the possible 111 points will be awarded 45.05 points calculated as follows: (100/111) x 50 Should the Large Entity not subscribe to the Tourism allocation, the Generic Scorecard will be utilised and similarly converted to 50 points No. Element Weighting 1. Ownership 27 points 2. Management Control 19 points 3. Skills Development 20 points 4. Enterprise and supplier development 40 points 5. Socio-economic development initiatives 5 points Total Available Weighting Points 111 Points

B-BBEE Continued… Qualifying Small Entities (QSE’s) Scorecard: The total points scored by the bidding entity out of the available 101 points will be converted to 50 points Eg. A QSE scoring 90 points out of the possible 101 points will be awarded 44.55 points calculated as follows: (90/101) x 50 Should the QSE not subscribe to the Tourism allocation, the Generic Scorecard or Affidavit will be utilised and similarly converted to 50 points No. Element Weighting 1. Ownership 26 points 2. Management Control 15 points 3. Skills Development 25 points 4. Enterprise and supplier development 30 points 5. Socio-economic development initiatives 5 points 6. Responsible marketing and communications Total Available Weighting Points 101 Points

B-BBEE Continued… Exempted Micro Enterprises (EMEs) Scorecard: EMEs will receive the minimum points under the Qualification scale UNLESS a B-BBEE certificate is provided in which case the points will be awarded as reflected on the certificate Points will be converted to the 50 available points for B-BBEE No. B-BBEE Status Qualification 1. Level One Contributor ≥ 100 Points on the Generic Scorecard 2. Level Two Contributor ≥ 95 but < 100 Points on the Generic Scorecard 3. Level Three Contributor ≥ 90 but < 95 Points on the Generic Scorecard 4. Level Four Contributor ≥ 80 but < 90 Points on the Generic Scorecard Maximum Points 100 Points

Stage 4: TRANSFORMATION IMPERATIVES Award for each opportunity will be made to the Bidder scoring the highest combined points for Price (50 points) and B-BBEE (50 points) subject to the following Transformation Imperatives No Bidder will be awarded more than 1 opportunity per airport Bidders will be awarded opportunities according to their Order of Preference where they have qualified for the award of 1 or more opportunities Should there be no other qualifying Bidders who have 1 or less opportunities, the Car Rental Opportunities may be awarded to Bidders who will have 1 or more opportunities post award Should there be unmatched kiosks and qualified bidders, ACSA reserves the right to negotiate with such bidders on agreed terms and conditions. NOTE: Note for each kiosk the combined kiosk and parking bay scores used to rank bidders,.

Submission requirements Appendix A Declaration form Appendix B Declaration of forbidden practices form Appendix C Acceptance of RFB terms and conditions Appendix D Company profile, executive summary and organogram Appendix E Joint Venture (JV) Agreement (If applicable) Appendix F Valid Original Tax Clearance Certificate Appendix G B-BBEE Declaration Form Appendix H Original B-BBEE Verification Certificate Appendix I Latest audited financial statements/management accounts Appendix J Bank / Financial Letter of Support Appendix K Structure of resources for the Opportunity Appendix L CV ’s of key personnel Appendix M Schedule of Bidder Experience Appendix N Certificate of Incorporation Appendix O Rent Schedule: Bid Rentals & Turnover % Appendix P Names and Identity Numbers of Directors (ID Copies) Appendix Q Order of Preference Appendix R Important Commercial Terms Appendix S Pro Forma Concession Agreement Appendix T Functionality Criteria Submissions Appendix U 3 Year Projected Income, Expenditure and Cashflow Submission requirements

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