1. THE ESTABLISHEMENT OF A PROFESSIONAL SERVICES RESOURCE PANEL FOR SAP IT RESOURCES FOR A PERIOD OF FIVE (5) YEARS Date: 27 August 2014

2. 2 Agenda 1Welcoming of AttendeesMbulelo Mncengani2 Minutes 2Evacuation ProcedureMbulelo Mncengani3 Minutes 3 Introduction of Eskom Representatives & Suppliers and Register All5 Minutes 4Objective of the sessionVarsha Pillay5 Minutes 5Safety Health & Environment (SHE)Ayanda Maxambele15 Minutes 6 Quality Sipho /Mbulelo15 Minutes 7TechnicalMartha & Team20 Minutes 8Supplier Development &LocalisationRojane Qacha10 Minutes 9Commercial InformationMbulelo Mncengani15 Minutes 10ClosureMbulelo Mncengani

3. 3 Commercial Clarification

4. Commercial clarification 4 Eskom Representative for Corp3039 : Mbulelo Mncengani E-mail: Mbulelo.Mncengani@eskom.co.za Landline: +2711 800 2877 Fax: +086 666 2297 Timelines Clarification meeting : 27 August 2014 Clarification Queries Closing Date : 12 September 2014 (5 days prior to closing) Enquiry Closing Date and Time: 17 September 2014, Strictly 10:00am (SAST) No Late Submission/s will be accepted under any circumstances – not even by a second Enquiry Price:: Free of Charge

5. Confirmation of tender document tender bulletin 1.RFP 2.PSC contract conditions 3.SHE Assurance 4.Quality Assurance 5.Eskom Conditions of Purchase 6.NDA Tender submission should take into account information shared at this meeting 5 Commercial clarification

6. Additional tender conditions If a supplier has participated in Concept Release approval (CRA) & Design Release Approval (DRA) stage of the project they may not tender for the Execution Release Approval ( ERA) phase. 6

7. 7 Tender Returnables

8. Tender Returnable 8 No. Title Reference 1 Original and valid SARS Tax Clearance Certificate 2 Latest signed and audited financial statements 3 A valid B-BBEE Verification Certificate from a Verification Agency 4 Safety documents ANNEX B 5 Quality REF QM 58 6 Supplier’s Declaration of Interest ANNEX “J” 7 Non-Disclosure Agreement (NDA) ANNEX “I” 8 Authority to submit a tender ANNEX “A” 9 Declaration of fair bidding practices ANNEX “D” 10 Supplier general information ANNEX “E” 11 Acknowledgement form 12 Technical spread sheet ANNEX H 13 Certificate of Compliance with the Employment Equity Act (if employing more than 50 employees) 14 Vendor details ANNEX “F” 15 Acceptance of general conditions of tender and quality requirements for the procurement of assets, goods and services. ANNEX “G” 16 Bid Rigging 17 Supplier Evaluation Pack ANNEX “L” 16 Probity on Close family member or beneficiaries 17 Letter from SAP confirming SAP partnership

9. 9 Pricing Schedule

10. Price Schedule Skill RATES (R ) K3K4K5K6+ 1. SAP Programme Manager 2. SAP Project Manager 3. SAP Solution Architects 4. SAP Application Architect 5. SAP Information and Integration Architect 6. SAP BI Project Manager 7. SAP BI Solution Architect 8. SAP BI System Analyst 9. SA Business Object Developer 10. SAP BW Developer 11. SAP Data Architect 12. SAP Software Developer 13. SAP Technical Architect 14. SAP Basis Resource 15. SAP Data Migration Resource 16. SAP Workflow Developer 17. PO Developer 19. SAP Change Manager 20. SAP EPC Developers 21. SAP Module / Functional Specialist 22. SAP Oracle Database 23. SAP AIX infrastructure 24. SAP Business Analyst 10

11. 11 Evaluation Criteria

12. The evaluation will follow a two prong approach as indicated below Contract Evaluation I.Supplier evaluation for contract award C.V. Evaluation after contract award II.The successful suppliers will be required to submit C.V’s for resources on an as and when required, and the CV’s will be evaluated per resources requirement. Eskom, as a State Owned Enterprise will use the PPPFA evaluation criteria to evaluate all bids that fully meet the gate keepers stated below. The 90/10 preference points system will be used. 12

13. 13 Evaluation Criteria Basic Compliance

14. BASIC COMPLIANCE Failure to adhere to expressly stated requirements, e.g. failure to provide pricing in the required format Tender certificate with partners status is needed as a returnable 14

15. 15 Evaluation Criteria Functionality

16. FUNCTIONAL ANALYSIS TECHNICAL GATE KEEPER Supplier must be a SAP Certified partner Companies responding must have an office in South Africa EVALUTION CRITERIA Supplier need to score a minimum of 65% Tenders which do not meet Eskom’s mandatory requirements will not be evaluated further 16 SectionWeightings Percentage Experience of the company 20% Compliance to implementation methodologies 15% SAP System Support Experience 15% SAP Management and Technical Resources 15% SAP Functional Resources 35% Total 100%

17. 17 Evaluation Criteria Objective Criteria

18. 18 Objective Criteria SHE

19. OBJECTIVE CRITERIA: SHE SAFETY (YOU REFER TO THIS AS ANNEXURE B&C) SHE EVALUATION SCORE CARD Is the acknowledgement form for Eskom's rules and requirements on procedure 32-726 (in Annexure B) signed and submitted by the tenderer A valid letter of Good Standing from Compensation of Injuries and Disease SHE Policy signed by the CEO of the Company Risk Assessment for the scope of work to be performed by the Supplier COMPULSORY DOCUMENTS TO BE SUBMITTED BEFORE COMMENCEMENT OF WORK / AWARD OF TENDER. Proof of medical surveillance fitness test records Vehicle Management: Proof of valid driver’s licenses or a confirmation that the employee will be using a public transport. Emergency Preparedness 19

20. 20 Objective Criteria QUALITY

21. OBJECTIVE CRITERIA: QUALITY 21

22. 22 Objective Criteria SD&L

23. OBJECTIVE CRITERIA : SD&L REQUIREMENTS SUPPLIER DEVELOPMENT AND LOCALISATION REQUIREMENTS As a State-Owned Enterprise, Eskom is increasingly utilised as a front line implementation channel for the concept of a “Developmental State” as such the following strategy for the transmission protection and control schemes apply: EVALUATION CRITERIA Suppliers will be required to contribute towards the six elements of SD&L over and above PPPFA regulations, namely: B-BBEE (Black ownership), Localisation, Industrialisation, Skills Development, Job Creation and Supplier Development for the duration of the contract. 23

24. OBJECTIVE CRITERIA : SD&L REQUIREMENTS 1.BBBEE A.Objective criteria in terms of section 2(1)(d-f) of the PPPFA will be used in awarding to the tenderer which meets specific objectives. The specific objectives include the following: Eskom prefers to contract with suppliers that are B-BBEE level 1 to 4 contributors and further preference is given to suppliers with more than 50% Black Ownership. The suppliers shall commit to maintaining or improving the B-BBEE contributor level for the duration of this contract. Suppliers shall be allocated points in accordance with the B-BBEE Evaluation Scorecard (figure 1) shown below and 90/10 preference point system shall be applicable 24

25. OBJECTIVE CRITERIA : SD&L REQUIREMENTS Figure 1: Preference Points Scorecard 25

26. OBJECTIVE CRITERIA : SD&L REQUIREMENTS B.Specific Goal of tendering The specific goals of Tender (Application of other criteria in terms of section 2(1)(d-f) of PPPFA) The objective criteria for this tender are the following: Transformation of this sector by through the appointment of a Black Owned supplier(s), Job creation for previously disadvantaged people, Skills development of unemployed candidates, Development of small black owned enterprises. To achieve the above the following aspects will apply: Negotiate with short listed suppliers to meet the targets in the SD&L compliance matrix. Only the local suppliers are to be listed in the panel. A minimum of 60% of the contract value shall be awarded to black owned entities or joint ventures. 26

27. OBJECTIVE CRITERIA : SD&L REQUIREMENTS NB. The joint venture entities may be a combination of: I.Black owned categories of BPLD, BYO, BWO and BO. II.Black owned categories of BPLD, BYO, BWO and BO together with non- black owned entities in which Black owned entities hold the majority shares. Suppliers shall be evaluated against their valid and accredited BBBEE verification certificate, and these suppliers are required to maintain their BBBEE contributor levels throughout the contract period. 27

28. OBJECTIVE CRITERIA : SD&L REQUIREMENTS 2.Localisation The target for the local content for the provision of resources for SAP CoE shall be set at 100% of the contract amount because all suppliers are locally based and shall deploy local resources. In cases where there are no local resources initially, the suppliers shall expedite the transfer of skills to local resources to become competent before the end of contract. In order to promote equitable distribution of spend among the panel members every supplier shall be allocated a minimum of R70 million over the contract period. Local-to-site target for the provision of SAP CoE resources shall be set at 100% of local content. Local content to site refers to Gauteng province where Eskom is utilising these SAP CoE resources. The aim is for the suppliers to spend some of their budget at locations where Eskom is utilising SAP CoE resources. The expenditure could be a combination of sourcing from local-to-site suppliers for the execution of activities, recruiting employees and developing skills of candidates from the local-to-site regions. There is no target for subcontracting because the suppliers are providing all the required resources themselves. Note: Only companies that have more than 50% of Black Youth Ownership and over 50% of Black Women Ownership are classified as BYO and BWO respectively. 28

29. OBJECTIVE CRITERIA : SD&L REQUIREMENTS 3.Industrialisation There is no target for industrialisation in this contract modification because the local content is already 100%. 4.Skills Development Skills development for the provision of resources for SAP CoE shall have specific targets that address Eskom’s core, scarce and critical skills and the MICT SETA scarce and critical skills. The target for skills development is one hundred and seventy five (175) candidates consisting of 85 identified and selected from local to site regions and further 90 from elsewhere in South Africa. This total figure shall be accumulated at task order allocation stage where the suppliers shall be assigned the number of candidates in proportion to the value of the task orders as indicated in the attached Skills Development Framework for SAP Centre of Excellence (CoE). Skills candidates shall be currently unemployed graduates from TVTCs (Technical and Vocational Training Colleges) universities or schools. These candidates shall also be representative of the population demographics of South Africa. The process of developing these skills shall involve the participation by suppliers directly and also through their supply network. In certain cases, the SETAs accredited training providers can be approached to participate in developing critical and scarce skills. 29

30. OBJECTIVE CRITERIA : SD&L REQUIREMENTS 5.Job Creation Suppliers should mention the number of jobs created and retained as a direct result of the contract. 6.Supplier Development Suppliers must indicate and submit the plans to develop their own SAP accreditation level through the improvement of their capability and capacity. These plans shall also make undertakings for the suppliers to improve their BBBEE status as well as black ownership. Every contract should be accompanied by the SD&L implementation schedule which must be completed by the supplier and returned to SD&L within 30 days of contract award. This will be used as a reference document for monitoring, measuring and reporting on the supplier’s progress in delivering on their stated SD&L commitments. 30

31. 31 Evaluation Criteria Price and Preference

32. Evaluation Criteria: Price and Preference 32 The bid price (maximum 90 points) B-BBEE status level of contributor (maximum 10 points) The following formula will be used to calculate the points for price A maximum of 10 points may be allocated to a bidder for attaining their B-BBEE status level of contributor.

33. 33 Evaluation Criteria Other contract conditions

34. Additional contract conditions Implement five (5) year contracts to a panel of six (6) top SAP certified companies SAP resources to be sourced from locally-based and internationally based companies. 34

35. Questions