REQUEST FOR PROPOSAL: SUPPLY AND … DOCUMENT No. : CDC-OP-RFP-002-16 SIGNING OF THE ORIGINAL DOCUMENT We, the undersigned, accept this document as a stable work product to be placed

This document, and the information or advice which it contains, is provided by the DoE/DSRAC Programme

solely for the use by the Coega Development Corporation (Pty) Ltd and for reliance by its Programme

Director and the Board in performance of that Programme’s duties.

REQUEST FOR PROPOSAL: SUPPLY AND INSTALLATION OF HVAC CHILLERS AT

THE COEGA BPO

Contract No. CDC/466/16

Coega Development Corporation Coega IDZ and Port IDZ Infrastructure Programme Zone Development and Operations

RFP_CDC/446/16 BPO HVAC Chiller Supply and Installation-Advert 2 Rev.0 29/07/2016

REQUEST FOR PROPOSAL

Request for Proposal: Supply and Installation of HVAC Chillers at the Coega BPO


1 INVITATION AND SCOPE OF SERVICES

The CDC is inviting capable and competent suppliers/equipment vendors to submit proposals for

the supply and installation of 2 (two) number 600Kw Capacity each water cooled chillers .

Respondents are required to have relevant experience in the supply and installation of similar

equipment. As such they are expected to submit agency and or vendor agreements with the

original equipment manufacturers from whom they intend to source the equipment.

The scope covers the supply, delivery, installation, testing and commissioning of 2-off new chiller

units.

The scope of work is briefly summarized as follows:

a) 2-off new air cooled chillers with nominal cooling capacity of ±600kW each, complete

with on board buffer tanks.

b) Hoisting and Rigging

i. All hoisting and rigging required for the installation of new plant and equipment.

ii. Provision shall be made to comply with the OHS Act requirements and

regulations.

c) As-Built Drawings and Operation and Maintenance Manuals

i. Three (3) sets of “as built / as installed” drawings of the new installation.

ii. Three (3) sets of comprehensive Operation and Maintenance Manuals.

d) 1 (One) Year Maintenance and Guarantee

i. All equipment and workmanship shall be maintained and guaranteed for a period

of minimum 1 year from the date of commissioning

e) Training of 2 (two) number technicians in the maintenance and operation of the chillers

The Coega Development Corporation (Pty) Ltd (CDC) is refurbishing and upgrading the HVAC system at its

BPO centre in the Coega IDZ, Zone 3



2. CONDITIONS

(a) Respondents must be agencies or approved local suppliers of the manufacturers as proved

by the provision of agency/supplier agreements with the original equipment manufacturers.

(b) Preference will be given to respondents who comply with the CDC’s Procurement Policy &

Procedures; Refer to TGP 07:2013 REV 07 (Annexure J)

(c) Preferential Procurement Policy Framework Act (PPPFA) principles shall apply, whereby

submissions will be evaluated according to the provisions of that Act and the Public

Finance Management Act (PFMA) Sections 36 and 49;

(d) Bidders must submit a valid BBBEE Verification Certificate from SANAS Accredited

Verification Agency or from a Registered Auditor approved by Independent Regulatory

Board of Auditors (IRBA) in order to be eligible for empowerment points; The Qualifying

Small Enterprise (QSE) and Exempted Micro Enterprises (EME) must submit a sworn

affidavit confirming the company Annual Total Revenue and level of black ownership;

(e) The goods to be supplied must meet the Technical Specification as outlined.

Respondents will be assessed as per the criteria shown in Annexure B. Bidders are

required to fulfil ALL technical/functionality criteria in order to proceed to the next step of

evaluation;

(f) The following scores will be applied:

(i) Price - 90;

(ii) BBBEE Status - 10.

Request for Proposals (RFP) documents can be collected at no cost from 09H00, Monday 15h

August 2016 at the Coega Business Centre, Cnr Alcyon and Zibuko Streets, Coega IDZ,

Port Elizabeth 6070, and can also be downloaded from the CDC Website: www.coega.co.za.

from Monday the 15th of August 2016

A compulsory briefing meeting will be held on the 26TH

of August 2016 at 10h00 at the CDC

Business Centre, eNkundleni Boardroom, Ground Floor, Cnr Alcyon and Zibuko Streets,

Zone 1, Coega IDZ, where CDC representatives and the consultant will meet potential bidders

One original of the completed RFP document shall be placed in a sealed envelope clearly

marked: “CDC/466/16 – Request for Proposals: Supply and Installation of HVAC Chillers at

Coega BPO” The closing date and time for the receipt of completed bid documents is Friday, 9TH

September 2016, at 12H00, at the at the Coega Business Centre, Cnr Alcyon and Zibuko

Streets, Coega IDZ, Port Elizabeth 6070.

Failure to provide any mandatory information required in this Bid will result in the submissions

being deemed null and void and shall be considered non-responsive. An Electronic Tax

Compliance Status (TCS) System will be used to verify the bidder’s tax compliance status

so bidders must request a unique security personal identification number (PIN) and also



the Tax Income Number from SARS which must be quoted in the bid. Bothe the (pin) and

Income Tax Number would be used for verification purpose.

Proof of Registration with the Treasury’s Centralised Suppliers Database i.e. CSD Registration

Number MUST be provided, a registration report which reflects the registration number is needed for

verification purpose.

No telephonic or any other form of communication with any other CDC member of staff,

other than the named individual below, relating to this request for bid will be permitted. All

enquiries regarding this bid must be in writing only, and must be directed to:

Andile Ntloko, Unit Head: Supply Chain Management e-mail: [email protected].

The CDC reserves the right not to accept the lowest proposal in part or in whole or any proposal.

mailto:[email protected]


RFP_CDC/466/16 Supply and Installation of HVAC Chillers at the Coega BPO 5 Rev.0 28/07/2016

Contract No

CDC/466/16

July 2016

Request for Proposal:

SUPPLY AND INSTALLATION OF HVAC CHILLERS AT THE COEGA BPO



DOCUMENT INFORMATION SHEET

Title of Document : Request for Proposal: Supply and Installation of HVAC Chillers at the Coega BPO

Type of Document : Request for Proposal

Document Number : CDC-OP-RFP-002-16

Prepared by : Robert Moses Magotsi

Typed by : Robert Moses Magotsi

Business Unit : IDZ Infrastructure Programme

Prepared for : Prospective Bidders

Date of Issue : 28 July 2016

Copyright

All rights reserved. No part of this document may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying or recording

or otherwise, or stored in a database or retrieval system, without the prior written permission of the Coega Development Corporation (Pty) Ltd. ©


RFP_CDC/466/16 Supply and Installation ofHVAC Chillers at the Coega BPO i Rev.0 28/07/2016

DOCUMENT CONTROL SHEET

The purpose of this form is to ensure that documents are reviewed and approved prior to issue. The form is to be

bound into the front of all documents released by the CDC.

PROJECT NAME : Supply and Installation of HVAC Chillers at the Coega BPO

DOCUMENT TITLE : Request for Proposal: Supply and Installation of HVAC Chillers at the Coega

BPO

DOCUMENT No. : CDC-OP-RFP-002-16

SIGNING OF THE ORIGINAL DOCUMENT We, the undersigned, accept this document as a stable work product to be placed under formal change control as

described by the Change Control Procedure document.

ORIGINAL Prepared by Reviewed by Approved by Date:

28 July 2016

Name: Robert Moses Magotsi

Name: Warren Davies

Name: Maria Van Zyl

Signature:

Signature: Signature:

Distribution: Potential Bidders

REVISION CHART

REVISION 1 Name:

Name:

Name:

Date:

Signature:

Signature:

Signature:

REVISION 2 Name:

Name:

Name:

Date:

Signature: Signature: Signature:

REVISION 3 Name:

Name:

Name:

Date:



RFP_CDC/466/16 Supply and Installation ofHVAC Chillers at the Coega BPO ii Rev.0 28/07/2016

RESPONDENT’S INFORMATION SHEET

This form MUST be filled in by all respondents to this RFP and included as the third page of the Proposal

after the cover page.


Description of Contract Supply and Installation of HVAC Chillers at the Coega BPO

Name of Organisation / Company / Professional Services Entity

Physical Address

Postal Address

Contact Name

Email Address

Telephone Number

Fax Number

Cell Number


RFP_CDC/466/16 Supply and Installation of HVAC Chillers at the Coega BPO iii Rev.0 28/07/2016

TABLE OF CONTENTS

1 INTRODUCTION AND BACKGROUND ........................................................................... 1

2 SCOPE OF WORK ........................................................................................................... 1

3 PREPARATION OF SUBMISSION .................................................................................. 1

3.1 Responsiveness Assessment ........................................................................................ 2

3.2 Additional Information Required ................................................................................... 2

3.3 Technical Specification of the products …………………………………………………...2

3.4 Quantitative Assessment ............................................................................................... 3

3.5 Qualitative Assessment……………... ............................................................................. 4

4 TERMS AND CONDITIONS ............................................................................................. 3

5 DISQUALIFICATION ........................................................................................................ 4



1 INTRODUCTION AND BACKGROUND

Due to frequent gas leakages into the working space at the Discovery BPO, CDC commissioned a

technical study to clearly understand the root cause of the leakages. The study revealed there were

both design and system construction inadequacies to the Heating, Ventilation and Air Conditioning,

(HVAC) system with respect to compressor discharge piping, shortage of cooling capacity,

inadequacy of internal air distribution, incorrect plant design and construction, statutory ventilation

requirements, and smoke control. The consultant then proposed short term measures and long term

measures to deal with the issues. While short terms measures have been implemented, Long term

measures proposed included changing the present plant system form pure refrigerant gas HVAC to

water chilled HAVC system. The supply of the water chillers equipment forms part of the long term

measures which will incorporate other design changes to the HVAC ducting system.

2 SCOPE OF WORK

The scope covers the supply, delivery, installation, testing and commissioning of 2-off new chiller units.

The scope of work is briefly summarized as follows:

a) 2-off new air cooled chillers with nominal cooling capacity of ±600kW each, complete with on

board buffer tanks.

b) Hoisting and Rigging

iii. All hoisting and rigging required for the installation of new plant and equipment.

iv. Provision shall be made to comply with the OHS Act requirements and regulations.

c) As-Built Drawings and Operation and Maintenance Manuals

iii. Three (3) sets of “as built / as installed” drawings of the new installation.

iv. Three (3) sets of comprehensive Operation and Maintenance Manuals.

d) 1 (One) Year Maintenance and Guarantee

ii. All equipment and workmanship shall be maintained and guaranteed for a period of

minimum 1 year from the date of commissioning

e) Training of 2 (two) number technicians in the maintenance and operation of the chillers

3 PREPARATION OF SUBMISSION

The following items are to be submitted:

(a) The Respondents Information Sheet at the beginning of this document;

(b) A copy of the agency/supplier agreement with equipment manufacturer;

(c) Proposed delivery program and timeframes;

(d) Commitment to the transfer of knowledge, i.e. by providing training to a minimum of two people.

(e) The Financial Proposal form (Annexure C) is to be completed and signed by.



3.1 Responsiveness Assessment

The following criteria will be used in assessing the responsiveness of tenders.

Table 1: Mandatory Requirements to be submitted

Note; Failure of bidders to meet all the above mandatory requirements will result in

submissions being deemed null and void and shall be considered “non – responsive” and

therefore not considered.

3.2 Additional Information Required

NO. DESCRIPTION YES NO

1

Confirmation of Tax Compliance Status with SARS (N.B – please provide Personal

Identification Number (PIN) and Income Tax Number obtained from SARS); which

would be used for verification purpose with SARS.

2 Completed and signed Declaration of Interest Register (Form A3: Annexure G

3 Completed and Signed Declaration of bidder’s past supply chain management

practices (SBD8)

4 Completed and Signed Certificate of Independent Bid determination (SBD9)

5 Completed and signed Financial Proposal Schedule

6

Proof of Registration with the Treasury’s Centralised Suppliers Database i.e. CSD

Registration Number MUST be provided, a registration report which reflects the

registration number is needed for verification purpose

7 Verifiable Proof of agency or vendor agreement with equipment manufacturer

8

Respondents MUST provide proof (References letter/completion certificates) a

minimum of two (2) of similar supply and installation in the past three (3) to five (5)

years.


1 Valid BBBEE Verification Certificate from SANAS Accredited Verification

Agency/registered Auditor approved by IRBA.

2

Proposed methodology covering and demonstrating coherence of the:

(i) Work organization programme, (ii) Resource plan, and (iii) Methodology for executing the works.

3 Record of previous projects of similar nature and contact persons;

4 Letter of commitment by the contractor to allocating at least 35% of the contract to

SMMEs for developmental and meaningful involvement in the project.

5 Record of registration of bidder with, The South African Refrigeration and Air



3.3 Quantitative Assessment

Bids that achieve the minimum technical requirement will be further adjudicated on Price and

BEE status. The method of scoring Financial Proposals and the BEE Verification Certificate is

described in the attached Tender Evaluation and Scoring document.

The allocation of tender adjudication points for this Contract shall be as follows:

3.4 Qualitative Assessment

Conduct a Qualitative Assessment on the top three scorers from Stage 3 on the riskiness and/or

the nature of the project. The main thrust of this assessment would not be to second-guess the

preferred bidder but to address the question around potential capacity and commercial risks. The

performance reports of bidders who have previous exposure with CDC will also be considered

during this Stage and those bidders with negative performance reports will not be recommended

for appointment. The main question to be addressed under this Stage would be if there are any

reasons, the bidder would not be awarded the contract even though it might be the highest scorer.

This would be in line with the provisions of Regulation 9 of the PPPFA Regulations.

4 TERMS AND CONDITIONS

(a) All submissions must be received by the CDC no later than 12:00 noon, Friday, 9 September

2016. Respondents must submit their proposals before the closing date and time and any late

submissions will not be considered;

(b) All submissions and subsequent information received will become the property of the CDC and

will not be returned;

(c) Failure to complete all mandatory information will result in submissions being deemed null and

void and shall be considered “non-responsive” and therefore not considered;

(d) Telegraphic, telexed, faxed or e-mailed submissions will not be accepted;

(e) One original document indicating cluster(s) tendered for shall be placed in sealed envelopes

clearly marked. “CDC/466/16 Supply and installation of HVAC Chillers at the Coega BPO”.

(f) Respondents or their representatives (including the courier services) must ensure that they

register their submissions in the Register for Submissions form that will be provided at the

Reception Desk of the CDC, wherein they will indicate the name of the person delivering the

submission, the number of copies submitted, the time and date of submission and attach their

signatures;

Conditioning Contractors Association (SARACCA)

Area of Adjudication Maximum Points

Tendered Price (SP) 90

Empowerment Objectives (SE) 10

Total Points (S) 100



(g) All enquiries and submissions regarding this Request for Proposal must be directed in writing

only to: Mr Andile Ntloko: Unit Head: Supply Chain Management

Fax : 041 403 0573

Email : [email protected]

(h) The contact person reflected above shall be the only point of contact for this contract. Failure to

observe this requirement will lead to immediate disqualification of the respondent;

(i) The CDC reserves the right not to accept any submission. If the CDC does not accept any

submission, it will declare this proposal request process to be closed and may then elect to

negotiate with any party, or to proceed on a completely different basis, or not to proceed with the

services;

(j) Submission of a proposal and its subsequent receipt by the CDC does not represent a

commitment on the part of the CDC to proceed further with any Respondent or any project;

(k) The Respondent shall treat as confidential all documentation, drawings, reports, etc. which are

provided pursuant to this RFP;

(l) All documents, drawings, reports, etc. prepared by the Respondent pursuant to this RFP shall

become the copyright property of the CDC;

(m) No costs incurred by the Respondents in the preparation of their submission will be reimbursed;

(n) All Respondents will be advised as soon as the successful Bidders have been approved

pertaining to the specific contract;

5 DISQUALIFICATION

Potential Bidders will be disqualified immediately during the tendering stage or during the tender

evaluation and adjudication stage or after the contract has been awarded if they are found to have

conducted or committed any of the following:

(a) Bidders, bidder’s representatives, associates, or shareholders that sought to influence

adjudication process of this tender, or outcomes of the adjudication process, directly or indirectly;

(b) Bidder that failed to follow or observe the lines of communication that are prescribed in the

Advert;

(c) Collusion among bidders;

(d) Misrepresentation of information;

(e) Any Bidder or its principals or both who have engaged in corrupt and fraudulent practices, not

only with the CDC but anywhere else;

(f) The CDC will consider the Proposed Consultants in the tenderer’s bid as the assigned resources

for any awarded Project, Any changes to these proposed personnel is subject to CDC’s approval

prior to being changed by the bidder;

(g) Bidder who has pending liquidation, in receivership, bankrupt/insolvent (actually and

commercially); and

(h) Bidder or discipline partner appearing on National Treasury blacklist.

(i) Bidders who have previously been terminated on CDC projects.



ANNEXURES

ANNEXURE A : SCOPE OF SERVICES AND TECHNICAL SPECIFICATIONS

ANNEXURE B : TECHNICAL SPECIFICATION OF THE PRODUCT

ANNEXURE C : FINANCIAL PROPOSAL

ANNEXURE D : SBD 8

ANNEXURE E : SBD 9

ANNEXURE G & H : COMPULSORY DECLARATION OF INTEREST

ANNEXURE I : TGP 07: 2013 REV 07



ANNEXURE A:

SCOPE OF SERVICES AND TECHNICAL SPECIFICATIONS



ANNEXURE B TECHNICAL SPECIFICATION OF THE PRODUCT



Assessment Criteria

Requirement Criteria Criteria met or

not (Yes/No)

Number of Chillers offered

2

Type of Chillers offered

Air cooled water chiller

Cooling Capacity

_+600kW

Number of Circuits per Chiller 2

Refrigerant

R 143a

Compressor Type

Variable Speed screw

Integrated Buffer Tank _+600 litre

Chilled water flow rate (Minimum) 28.0L/sec at 230Kpa Head

(pressure)

Chiller Water Temperatures

Entering

Leaving

120C

70C

Chiller has Eurovent ESEER rating of at least A Provide verifiable ESEER

Rating of proposed Chiller

Chiller Assembled and Tested under ISO 9001

Quality management System Conditions

Provide ISO certification of

Assembler (Equipment

manufacturer)

Notes:

1. Bidders are required to fulfil all the above technical conditions to be considered for next stage

evaluation .



ANNEXURE C

FINANCIAL PROPOSAL



ANNEXURE C: FINANCIAL PROPOSAL

(Respondents MUST complete the pricing schedule and also the form of offer which forms part of Annexure

A)

.



ANNEXURE D

SBD 8

SBD 8

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES

1 This Standard Bidding Document must form part of all bids invited. 2 It serves as a declaration to be used by institutions in ensuring that when goods and services

are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system.

3 The bid of any bidder may be disregarded if that bidder, or any of its directors have-

a. abused the institution’s supply chain management system; b. committed fraud or any other improper conduct in relation to such system; or c. failed to perform on any previous contract.

4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

Item Question Yes No

4.1 Is the bidder or any of its directors listed on the National Treasury’s Database of Restricted Suppliers as companies or persons prohibited from doing business with the public sector? (Companies or persons who are listed on this Database were informed in writing of this restriction by the Accounting Officer/Authority of the institution that imposed the restriction after the audi alteram partem rule was applied). The Database of Restricted Suppliers now resides on the National Treasury’s website(www.treasury.gov.za) and can be accessed by clicking on its link at the bottom of the home page.

Yes

No

4.1.1 If so, furnish particulars:

4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)? The Register for Tender Defaulters can be accessed on the National Treasury’s website (www.treasury.gov.za) by clicking on its link at the bottom of the home page.

Yes

No


4.3 Was the bidder or any of its directors convicted by a court of law (including a court outside of the Republic of South Africa) for fraud or corruption during the past five years?

Yes

No

http://www.treasury.gov.za/

http://www.treasury.gov.za/




4.4 Was any contract between the bidder and any organ of state terminated during the past five years on account of failure to perform on or comply with the contract?

Yes

No


SBD 8

CERTIFICATION

I, THE UNDERSIGNED (FULL NAME)………………………………………….

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN

AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE. ………………………………………... ………………………….. Signature Date

………………………………………. ………………………….. Position Name of Bidder



ANNEXURE E

SBD 9



SBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

1 This Standard Bidding Document (SBD) must form part of all bids¹ invited.

2 Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement

between, or concerted practice by, firms, or a decision by an association of firms, if it is between

parties in a horizontal relationship and if it involves collusive bidding (or bid rigging). Collusive

bidding is a pe se prohibition meaning that it cannot be justified under any grounds.

3 Treasury Regulation 16A9 prescribes that accounting officers and accounting authorities must take

all reasonable steps to prevent abuse of the supply chain management system and authorizes

accounting officers and accounting authorities to:

a. disregard the bid of any bidder if that bidder, or any of its directors have abused the

institution’s supply chain management system and or committed fraud or any other

improper conduct in relation to such system.

b. cancel a contract awarded to a supplier of goods and services if the supplier committed any

corrupt or fraudulent act during the bidding process or the execution of that contract.

4 This SBD serves as a certificate of declaration that would be used by institutions to ensure that,

when bids are considered, reasonable steps are taken to prevent any form of bid-rigging.

5 In order to give effect to the above, the attached Certificate of Bid Determination (SBD 9) must be

completed and submitted with the bid:

¹ Includes price quotations, advertised competitive bids, limited bids and proposals.

² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire

to raise prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services

through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete.

SBD 9



CERTIFICATE OF INDEPENDENT BID DETERMINATION

I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________

(Bid Number and Description)

in response to the invitation for the bid made by:

______________________________________________________________________________

(Name of Institution)

do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of:_______________________________________________________that:

(Name of Bidder)

1. I have read and I understand the contents of this Certificate;

2. I understand that the accompanying bid will be disqualified if this Certificate is found not to be true

and complete in every respect;

3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying bid, on behalf

of the bidder;

4. Each person whose signature appears on the accompanying bid has been authorized by the bidder

to determine the terms of, and to sign the bid, on behalf of the bidder;

5. For the purposes of this Certificate and the accompanying bid, I understand that the word

“competitor” shall include any individual or organization, other than the bidder, whether or not

affiliated with the bidder, who:

(a) has been requested to submit a bid in response to this bid invitation;

(b) could potentially submit a bid in response to this bid invitation, based on their

qualifications, abilities or experience; and

(c) provides the same goods and services as the bidder and/or is in the same line of

business as the bidder



SBD 9

6. The bidder has arrived at the accompanying bid independently from, and without consultation,

communication, agreement or arrangement with any competitor. However communication between

partners in a joint venture or consortium³ will not be construed as collusive bidding.

7. In particular, without limiting the generality of paragraphs 6 above, there has been no consultation,

communication, agreement or arrangement with any competitor regarding:

(a) prices;

(b) geographical area where product or service will be rendered (market allocation)

(c) methods, factors or formulas used to calculate prices;

(d) the intention or decision to submit or not to submit, a bid;

(e) the submission of a bid which does not meet the specifications and conditions of the

bid; or

(f) bidding with the intention not to win the bid.

8. In addition, there have been no consultations, communications, agreements or arrangements with

any competitor regarding the quality, quantity, specifications and conditions or delivery particulars of

the products or services to which this bid invitation relates.

9. The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly

or indirectly, to any competitor, prior to the date and time of the official bid opening or of the

awarding of the contract.

³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property,

capital, efforts, skill and knowledge in an activity for the execution of a contract.



SBD 9

10. I am aware that, in addition and without prejudice to any other remedy provided to combat any

restrictive practices related to bids and contracts, bids that are suspicious will be reported to the

Competition Commission for investigation and possible imposition of administrative penalties in

terms of section 59 of the Competition Act No 89 of 1998 and or may be reported to the National

Prosecuting Authority (NPA) for criminal investigation and or may be restricted from conducting

business with the public sector for a period not exceeding ten (10) years in terms of the Prevention

and Combating of Corrupt Activities Act No 12 of 2004 or any other applicable legislation.

………………………………………………… …………………………………

Signature Date

…………………………………………………. …………………………………

Position Name of Bidder

Js914w 2



ANNEXURE G

FORM A3: COMPULSORY DECLARATION OF INTEREST

The following particulars must be furnished. In the case of a joint venture, separate enterprise

questionnaires in respect of each partner must be completed and submitted.

Section 1: Name of enterprise: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 2: VAT registration number, if any: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3: Accreditation/ registration number, if any: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 4: Particulars of sole proprietors and partners in partnerships

Name* Identity number* Personal income tax number*

* Complete only if sole proprietor or partnership and attach separate page if more than 3 partners

Section 5: Particulars of companies and close corporations

Company registration number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Close corporation number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax reference number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 6: Record of association with CDC member of Staff/Board

Indicate by marking the relevant boxes with a cross, if any sole proprietor, partner in a partnership or director,

manager, principal shareholder or stakeholder in a company or close corporation has an association with a CDC

member of staff or member of Board, a relative of a CDC member of staff or member of Board: An Association

is defined as: a business or personal relationship between a group of people or organizations joined together a

purpose.

If any of the above boxes are marked, disclose the following:

Name of sole proprietor,

partner, director, manager,

principal shareholder or

stakeholder

Name of the CDC member of staff or

Board

Type of relationship

(tick appropriate column)

Family Friend

*insert separate page if necessary



ANNEXURE H FORM A3: COMPULSORY DECLARATION OF INTEREST (continued)

The undersigned, who warrants that he / she is duly authorised to do so on behalf of the enterprise:

i) confirms that the neither the name of the enterprise or the name of any partner, manager, director or other

person, who wholly or partly exercises, or may exercise, control over the enterprise appears on the Register of

Tender Defaulters established in terms of the Prevention and Combating of Corrupt Activities Act of 2004;

ii) confirms that no partner, member, director or other person, who wholly or partly exercises, or may exercise,

control over the enterprise, has within the last five years been convicted of fraud or corruption;

iii) confirms that I / we are not associated, linked or involved with any other tendering entities submitting EOI offers

and have no other relationship with any of the bidders or those responsible for compiling the scope of work

that could cause or be interpreted as a conflict of interest; and

iv) confirms that the contents of this questionnaire are within my personal knowledge and are to the best of my

belief both true and correct.

Signed

Date

Name

Position

Company


APPENDIX I: TPG 07

Coega Development Corporation Coega IDZ and Port Procurement Zone Development and Operations


17 JANUARY 2013

EVALUATION AND SCORING OF

TENDER OFFERS ON

EMPOWERMENT OBJECTIVES AND

PRICE

Work Instruction No

TGP 07: 2013

REV 07



We, the undersigned, accept this document as a stable work product to be placed under formal change

control as described by the Procedure CDC-OP-PRO-002-08 Procedure for Management of Controlled

Documents.

This document, and the information or advice which it contains, is provided by the Safety, Health

and Environment Business Unit solely for use by the Coega Development Corporation (Pty) Ltd

and for reliance by its Executive Management and the Board in the performance of that Business

Unit’s duties.

Prepared by Reviewed by Approved by

Date:

Name:

Luvuyo Matya

Name: Andile Ntloko

Name: Bongeka Jojo




CDC-OP-FOM-080-12 i 17/01/2013



TABLE OF CONTENTS

ACRONYMS ................................................................................................................... 2

1 INTRODUCTION ....................................................................................................... 2

2 APPLICABLE DOCUMENTATION ........................................................................... 2

3 DEFINITIONS AND INTERPRETATIONS ................................................................. 3

4 TENDER ADJUDICATION POINTS .......................................................................... 6

5. DETERMINATION OF RESPONSIVENESS OF BIDDERS…………………………...7

6. THE QUANTITIATIVE ASSESSMENT……………………………………………..........9

7. GUIDELINES WHEN FUNCTIONALITY IS USED IN THE EVALAUTION

PROCESS………………………………………………..…………….. ……………… 10

8. DISQUALIFIERS DURING EVALUATION STAGE……………………….…………...10

9 DOCUMENTATION TO BE SUBMITTED IN SUPPORT OF TENDER ................... 12

10 VALIDITY OF PREFERENTIAL REGISTRATION AFFIDAVIT .............................. 13

11 PROOF OF CONTRACTUAL ARRANGEMENT .................................................... 13

12 OUTSOURCING OF WORKS ................................................................................. 14

13 COMPLIANCE WITH LEGISLATION ..................................................................... 14

14 SUBSTITUTION OF PREFERENTIAL GROUP DURING CONTRACT PERIOD ... 14

15 RECORDING AND REPORTING BY THE CONTRACTOR ................................... 15



ACRONYMS

ABE = Affirmable Business Enterprise

ABVA = Association of BEE Verification Agencies

BBBEE = Broad-based Black Economic Empowerment

BEE = Black Economic Empowerment

EME = Exempted Micro Enterprises

CDC = Coega Development Corporation (Pty) Ltd

CIDB = Construction Industry Development Board

LEP = Local Enterprise Participation

PPPFA = Preferential Procurement Policy Framework Act

SMME = Small, Medium and Micro Enterprises

WEO = Women Equity Ownership

INTRODUCTION

This Specification, TGP 07:2013: Tender Offer Evaluation and Scoring shall form the basis for

determining how this tender will be evaluated and scored more particularly with respect to

achievement of Empowerment Objectives and the Tendered Price.

This Specification was developed and adopted by the Coega Development Corporation Pty Ltd (CDC)

to ensure that Broad Based Black Economic Empowerment (B-BBEE) is meaningfully progressed and

that individuals with B-BBEE status, specifically from the Eastern Cape, participate meaningfully

during the execution of contracts awarded by the CDC for the development of the Coega IDZ and on

projects that the CDC implements on behalf of other entities.

APPLICABLE DOCUMENTATION

This Specification is to be read together with following applicable documents:

(a) Preferential Procurement Policy Framework Act (PPPFA);

(b) Broad-based Black Economic Empowerment Act (B-BBEE);

(c) CDC’s Procurement Policy & Procedures;

(d) Construction Industry Development Board’s (CIDB’s) Code of Conduct; and

(e) Public Finance Management Act (PFMA).



DEFINITIONS AND INTERPRETATIONS

(a) Affiliated Business: A business entity which has control of or the power to control another

business entity, albeit indirectly, e.g. where a third person has control of or has the power to

control both entities. Indicators of control shall, without limitation, include interlocking

management or ownership, identity of interests among family members, shared facilities and

equipment, or common use of employees.

(b) Accredited Verification Agencies: Enterprises that have been accredited by SANAS and

ABVA on behalf of the DTI to provide an independent opinion on the broad-based economic

empowerment status of enterprises.

(c) Assignment Value: The total Rand value of the money charged to the CDC by a Service

Provider for services rendered to the CDC following a duly authorised appointment to do so by

the CDC.

(d) Black people: refers to African, Coloureds, Chinese and Indian who are citizens of RSA by

birth and are citizens of RSA by naturalisation before 1994.

(e) Black Economic Empowerment: is defined as an integrated and coherent socio-economic

process that directly contributes to the economic transformation of South Africa and brings

about significant increases in the number of black people who manage, own and control the

country’s economy, as well as significant decrease in income inequalities.

(f) Broad Based Black Economic Empowerment: means the economic empowerment of all

black people including black women, workers, youth, people with disabilities and people living

in rural areas, through diverse but integrated socio economic strategies, as defined in the Act.

(g) Codes of Good Practice : refers to BEE Codes of Good Practice including all the statements

as issued under section 9 of Act 53 of 2003

(h) Contract: A legally binding agreement between the CDC and the Service Provider for the

latter to provide goods and/or services to the former. A contract would be legally binding only if

it has been signed by people who have the delegated authority to do so.

(i) Contractor: Any person, body, or legal entity who has a contract with the CDC for performing

a construction related contract. A Tenderer whose tender has been accepted becomes a

Contractor.



(j) Control: The possession and exercise of legal authority and power to manage the assets,

goodwill and daily operations of a business and the active and continuous exercise of

appropriate managerial authority and power in determining the policies and directing the

operations of the business.

(k) Employment Intensive Construction: Forms of construction utilising methods and

technologies which realise an increase in the number of employment opportunities generated

over plant based or traditional forms of construction.

(l) Executive Director: A partner in a partnership, a sole proprietor, a director of a company

established in terms of the Companies Act, 1973 (Act 61 of 1973) or a member of a close

corporation registered in terms of the Close Corporation Act, who, jointly and severally with his

other partners, co-directors or co-members, as the case may be, bears the risk of the business

and takes responsibility for the management and liabilities of the partnership, company, or

close corporation on a day to day basis.

(m) Firm: A business entity providing professional services in which at least two thirds of the

Principals are Registered Professionals-in-training.

(n) Joint Venture: An association of firms, companies or businesses for which purpose they

combine their expertise, efforts, skills and knowledge to execute the Contract.

(o) Local Enterprise Participation: A firm, company, business with a permanent office and

infrastructure in the Eastern Cape Province that participates meaningfully in the Performance

of the Works.

(p) Office: A firm which is under the full-time control and operation of a resident Registered

Professional.

(q) Owned: Having all the customary incidents of ownership, including the right of disposition,

and sharing the risks and profits commensurate with the degree of ownership interest as

demonstrated by an examination of the substance, rather than the form of the ownership

arrangements.

(r) Ownership Goal: The percentage of the Tendered Price, as awarded, which represents the

sum of the Rand value of HDI people’s equity in the Performance of the Works.

(s) Preferential Group: Individuals, firms or companies with BEE status and who are targeted for

empowerment.



(t) Preferential Participation Programme: A programme indicating the means, resources and

methodology by which a Contractor would undertake to engage preferential groups in the due

fulfilment of the Contract.

(u) Prime Contractor: A contractor who contracts with the CDC as the principal or main

contractor or as a joint venture partner to such contractors, to provide goods, services or

works.

(v) Professional Service: The provision on a fiduciary basis of labour and knowledge-based

expertise which is applied with skill, care and diligence in accordance with the provision of the

Professional Service Contract.

(w) Service Provider: Any person or body corporate that is under contract to the CDC for

providing a Professional Service.

(x) Registered Principal: A person within an Office who is professionally registered by the

relevant statutory council, and who is a director, partner, member, profit sharing associate,

shareholder or other category of persons who participates meaningfully in the ownership,

benefits and risks of the Office and is engaged full time in the operation of the Office.

(y) Registered Professional: A full-time employee of an Office, other than a Principal, who is

professionally registered by the relevant statutory council.

(z) Registered Professional-in-training: A full-time employee, other than a Principal, who is

registered by the relevant statutory council as a professional-in-training, has obtained the

necessary tertiary qualifications to register as a professional and is serving an in-house training

period prior to applying to register as a professional.

(aa) Senior Manager: An individual who is responsible for planning, organising, leading and

controlling operations within an organisation and who reports to the Executive Director.

(bb) Services: The provision of labour and/or work carried out by hand or with the assistance of

equipment and plant including the input as necessary of knowledge based expertise.

(cc) Small, Medium and Micro Enterprises: There are two types namely Exempted Small & Micro

Enterprise (ESME’s) and Qualifying Small Enterprise (QSE):

(i) Exempted Small & Micro Enterprises (ESME’s) are defined by the Codes, as companies

with an annual total turnover of R5 million or less.

(ii) Qualifying Small Enterprises (QSE) are defined by the Codes, as companies with an

annual total turnover of between R5 million and R35 million.



(dd) Sub-contractor: A contractor who contracts with the Prime Contractor to provide works as

part of the total services required by the CDC for that Contract.

(ee) Supplier: A firm that owns, operates or maintains stores, warehouses or other establishments

in which materials or supplies are bought, kept in stock and regularly sold to the public in the

usual course of business; and engages as its principal business, and in its own name, in the

purchase and sale of goods.

(ff) Tender: The offer of prospective suppliers of goods and/or services, submitted in a tender

document which is issued to the public at large.

(gg) Women Equity Ownership (WEO): The collective ownership percentage of full-time

Executive Directors within an enterprise who are women.

TENDER ADJUDICATION POINTS

4.1 Points Awarded for Empowerment Objectives

The points system for Service Providers (and Contractors) will be structured in the following

way:

SCORING

CRITERIA

WEIGHTING FOR

80:20

WEIGHTING FOR

90:10 COMMENTS

Price 80 90

Empowerment

Objective 20 10

B-BBEE Certificate

is required

Total points 100 100

The 80:20 weighting applies for contracts less than R1 million (VAT Incl.) whereas the 90:10

weighting applies for all contracts in excess of R1 million (VAT Incl.).



The allocation of tender adjudication points for Contracts shall be as follows:

Area of Adjudication Maximum Points Maximum Points

Tendered Price (SP) 80 90

Empowerment Objectives (SE) 20 10

Total Points (S) 100 100

In addition to price evaluation, CDC will evaluate contractors, service providers and

professionals based on their B-BBEE status achieved in accordance with the DTI Codes of

Good Practice and companies must submit B-BBEE Verification Certificates from accredited

verification agency or IRBA registered Auditors in order to be eligible for empowerment points.

Exempted Small & Micro Enterprises (ESME’s) enjoy a deemed BEE recognition of Level 4

contributor and those, which are 50% or more owned by black people are promoted to a Level

3 contributor. Sufficient evidence of qualification as an Exempted Small Micro-Enterprises

(ESME’s) is a letter from the enterprise’s Accounting Officer confirming that the turnover is less

than R5m or a verification certificate from Independent Regulatory Board for Auditors (IRBA) or

SANAS registered Verification Agency.

Note:

A Trust, Consortium or Joint Venture will qualify for points for their B-BBEE Status

Level as a legal entity, provided that the entity submits their B-BBEE Status Level

certificate.

A Trust, Consortium or Joint Venture will qualify for points for their B-BBEE Status

Level as an unincorporated entity provided that the entity submits their consolidated B-

BBEE Scorecard as if they were a group structure and that such a consolidated B-

BBEE Scorecard is prepared for every separate tender.

Empowerment points shall be awarded to a tenderer for attaining the B-BBEE status level of

contributor in accordance with the table below.

CONTRIBUTION LEVEL WEIGHTING FOR

80:20

WEIGHTING FOR

90:10

Level One 20 10

Level Two 18 9

Level Three 16 8

Level Four 12 5



CONTRIBUTION LEVEL WEIGHTING FOR

80:20

WEIGHTING FOR

90:10

Level Five 8 4

Level Six 6 3

Level Seven 4 2

Level Eight 2 1

Non Compliant Contributor 0 0

4 Local Enterprise Participation (LEP Target)

The LEP target is the value of work done by local enterprises, whether as prime contractor, sub-

contractor or supplier, determined as follows:

The value sourced at local level is the value of resources based in the local area or produced in the

local area

The LEP target must be calculated in relation to every entity involved in the project. Management staff

commuting from other areas for the duration of the project will not qualify as local. Plant and equipment

brought in from other areas will not qualify as local. Materials and plant sourced via local suppliers or

agencies will qualify as local. A supplier that has been established locally by a Tenderer solely for the

purpose of servicing the project will not qualify as a local Supplier.

The LEP threshold for CDC contracts is 30%.

The threshold may be increased by the BU up to 50% if scope exists for further local participation.

5 SMME / EME Involvement

There should be a minimum participation of 35% SMME’s / EME’s participation of tender value,

excluding VAT, escalation, etc. Each project from every Business Unit must achieve a minimum of 35%

SMME participation.



DETERMINATION OF RESPONSIVENESS OF BIDDERS

In deciding on the responsiveness or pre-qualifiers due cognisance must be taken to the fact that some

should always be included in the tender documents and some would depend upon the nature of the

contract and therefore might not always be required. The following responsiveness criteria or pre-

qualifiers will be used in this bid and are subdivided into mandatory and non-mandatory:

5.1 Mandatory Requirements

5.5.2 Additional information required


1

Confirmation of Tax Compliance Status with SARS (N.B – please provide

Personal Identification Number (PIN) and Income Tax Number obtained from

SARS); which would be used for verification purpose with SARS.

2 Completed and signed Declaration of Interest Register (Form A3: Annexure G

3 Completed and Signed Declaration of bidder’s past supply chain management

practices (SBD8

4 Completed and Signed Certificate of Independent Bid determination (SBD9)

5 Completed and signed Financial Proposal Schedule

6

Proof of Registration with the Treasury’s Centralised Suppliers Database i.e.

CSD Registration Number MUST be provided, a registration report which

reflects the registration number is needed for verification purpose

7 Verifiable Proof of agency or vendor agreement with equipment manufacturer

8

Respondents MUST provide proof (References letter/completion certificates) a

minimum of two (2) of similar supply and installation in the past three (3) to five

(5) years.

NO. DESCRIPTION

(1) BBBEE Certificate

(2)

The main JV partner to carry out the highest percentage of the work, to have the

relevant CIDB grading for that category of works in case of contractors, and to lead

contract (where applicable);

(3)

Proposed methodology covering and demonstrating coherence of the:

(iv) Work organization programme, (v) Resource plan, and (vi) Methodology for executing the works.

(4) Access/ownership (availability) of plant & equipment (In case of hiring key plant, letter

conforming the willingness of the hirer to hire equipment to the bidder);

(5) Record of previous projects which may be relevant in the evaluation of the bid and



6. THE QUANTITATIVE ASSESSMENT

It is considered that there might be a need for an iterative process between the Stage 1 and Stage 2

in that other things befit Stage 1 might only be apparent in Stage 2. This should be construed as

progressive elaboration of assessment and should be allowed to take place when a need to do so

arises.

6.1 Points Awarded for Tender Price (SP)

The lowest acceptable tendered price should be determined and will be used to calculate the

score for price. A maximum of 80 or 90 points will be allocated to the Tendered Price on the

following basis:

Where: SP = Score obtained by the Tenderer for Price;

Smax = Maximum score that could be obtained for this Contract;

Plowest = Lowest acceptable tender price;

Ptendered = Tendered price being considered.

contact persons (if any);

(6)

Supporting documents on project imperatives:

(i) Plans for promoting and managing safety, health and environmental issues during execution of the project;

(ii) Plans for monitoring and applying quality assurance principles in the execution of the project;

(iii) Plans for addressing socio-economic issues (with specifics on numbers to be achieved) which include:

(1) Maximisation of job opportunities (labour histograms); (2) Creation of opportunities and meaningful involvement of SMMEs; (3) Use of local material/local suppliers; and (4) Training of labour (non –accredited). (5) Proof of office locality (e.g. municipal account, title deed, lease

agreement etc.)

)(max tenderedlowestP PPSS



6.2 Empowerment Scoring, SE

(a) Obtain Broad-based Black Economic Empowerment (B-BBEE) certificate which must be

submitted with tender. (entities issuing the certificates should be registered with SANAS

or IRBA.

(b) In case of JV or Consortium submissions a Consolidated B-BBEE Scorecard must be

submitted and it must be prepared for every separate tender.

6.3 Total Tender Adjudication Points

The total tender adjudication points (S), is given by:

S = SP + SE (Not to Exceed 100 Points)

7 GUIDELINES WHEN FUNCTIONALITY IS INCLUDED AS A CRITERION IN THE

EVALUATION OF BIDS

Functionality – means the measurement according to predetermined norms of a service or commodity

designed to be practical and useful, working or operating, taking into account quality, reliability, viability

and durability of a service or commodity.

The evaluation of bids must be conducted in the following two stages:

7.1 Firstly, the assessment of functionality must be done in terms of the evaluation criteria and the

minimum threshold be determined. A bid must be disqualified if it fails to meet the minimum

threshold for functionality as per the bid invitation.

7.2 Thereafter, only the qualifying bids are evaluated in terms of the 80/20 or 90/10 preference

points systems, where the 80 or 90 points must be used for price only and the 20 or 10 points

are used for empowerment scoring and/or for achieving the prescribed RDP Goals.



8 DISQUALIFIERS DURING EVALUATION STAGE

The following disqualifiers will be used:

8.1 Bidder that sought to influence the adjudication process;

8.2 Collusion among bidders;

8.3 Misrepresentation of information;

8.4 Any service provider or its principals (or both) who have engaged in corrupt and fraudulent

practices, not only with the CDC but anywhere else;

8.5 Bidder who has a pending liquidation, in receivership, bankrupt/insolvent (actually and

commercially)

8.6 Tendered price unrealistically low and posing commercial risks to the client;

8.7 Poor past performance (the focus is on gross poor performance and a clear trend of poor

performance needs to be established).

9 DOCUMENTATION TO BE SUBMITTED IN SUPPORT OF TENDER

(a) The CDC shall require all potential Consultants, SP’s and CONTR’s to submit at tender stage,

a valid certified copy of a Verification Certificate. The Verification Certificate which indicates the

entity’s BEE status must be issued by SANAS Accredited Verification Agency or IRBA

registered Auditors. Similarly, small entities i.e. Exempted Small Micro Enterprises (ESME’s)

will have to submit Exemption Certificates issued by an Accredited Verification Agency or IRBA

registered Auditor’s certificate or similar certificate issued by Accounting Officers.

(b) The common legislative requirements that are specified by the CDC are CIDB Grading and

valid original Tax Clearance Certificate (TCC).

(c) Tenderers shall submit the Draft Joint Venture Agreement when required to do so.

(d) Tenderers shall deliver to the Employer a works programme clearly specifying the participation

of targeted enterprises per activity.

(e) Failure by the Tenderer to complete and deliver the information schedules in the form and

within the time specified as agreed by the CDC or its agents/officers, etc., may render the

tender non-responsive and lead to its rejection.



10 VALIDITY OF PREFERENTIAL REGISTRATION AFFIDAVIT

(a) Should a Tenderer either claim or engage an enterprise whose actual black equity and/or staff

composition differs from the actual black equity and/or staff composition for which credits have

been claimed whether incorrectly and/or fraudulently on any tender, such Tenderer shall

immediately be disqualified.

(b) Any Contract awarded on account of false information furnished by the Tenderer in order to

secure preference may be cancelled at the sole discretion of the CDC without prejudice to any

other remedies the CDC may have.

(c) Should the Tenderer be found to have acted fraudulently and/or dishonestly, he/she will be

disqualified from all future tenders for a minimum period of thirty six (36) months, or as

otherwise decided by the CDC.

(d) It is primarily the responsibility of the Tenderer to understand the relevant criteria, definitions

and interpretations associated with a specific preference group before claiming credits for the

engagement of such preference group.

11 PROOF OF CONTRACTUAL ARRANGEMENT

11.1 The Contractor shall submit to the CDC a list of sub-contractors to perform works, services or

supply of goods entered into between the Prime Contractor or Joint Venture at Prime Contract

Level and the sub-contracted preference groups. The CDC may deny the Contractor credits

towards the attainment of his preference group participation percentage in the absence of a

written sub-contract and/or the failure by the Contractor to submit a copy thereof to the CDC.

11.2 A Joint Venture or Consortium shall submit to the CDC a certified copy of the Joint Venture /

Consortium Agreement, if the Joint Venture/Consortium involves preference groups for which

participation credits are applied. The Contractor shall not impose upon preference groups

unfair conditions of contract. Preference participation credits claimed may be denied if such

contracts contain:

(i) A right of set-off, session and assignment as well as surety in favour of the employing

contractor;

(ii) Authoritarian rights given to the employing contractor with no recourse to independent

adjudication in the event of a dispute arising;

(iii) Payment procedures based on a pay-when-paid system;

(iv) Unreasonable retention percentages and periods of retention after completion;

(v) Conditions which are more onerous than those which exist in the Contract with the CDC.



11.3 Groups for which preference credits are applied for shall participate meaningfully during the

Performance of the Works and shall be responsible for clearly defined portions of the works to

be performed or services to be provided with its own work force and using its own resources or

resources hired by it independent of the employing contractor or non-preference partners in a

joint venture.

12 OUTSOURCING OF WORKS

12.1 The Prime Contractor/Service Provider shall execute works in accordance with tender

commitment and may not outsource works without due approval of the CDC Project Manager.

12.2 An entity must not be awarded points for B-BBEE status level if it is indicated in the tender

documents that such a tenderer intends sub-contracting more than 25% of the value of the

contract to any other enterprise that does not qualify for at least the points that such tenderer

qualifies for, unless the intended sub-contractor is an exempted micro enterprise that has the

capacity and ability to execute the sub-contract.

12.3 An entity awarded a contract may not sub-contract more than 25% of the value of the contract

to any other enterprise that does not have an equal or higher B-BBEE status level than the

person concerned, unless the contract is sub-contracted to an exempted micro enterprise that

has the capacity and ability to execute the sub-contract.

13 COMPLIANCE WITH LEGISLATION

Submissions from entities which do not meet the specified legislative requirements or proof of suitable

arrangements being made with the relevant authorities at the time of tendering will be rendered non-

responsive by the CDC. The common legislative requirements that are specified by the CDC are

CIDB Grading and valid original Tax Clearance Certificate (TCC).

In cases of Joint Ventures or Consortia, all the JV partners must have valid original TCC by the time

they make a submission. If one of the JV partners has not submitted a valid original TCC, the entire

JV or Consortium shall be regarded as being non-responsive. Sub-contractors must also comply with

Tax Clearance Certificate (TCC) requirements.

14 SUBSTITUTION OF PREFERENTIAL GROUP DURING CONTRACT PERIOD

13.1 Conditions during the Performance of the Works may necessitate terminating the participation

of a Preferential Group. This termination must, however, be authorised by the designated CDC

Project Manager. Key indicators for such justification include, but are not limited to the

following:



(i) Continuous poor productivity and progress by the Preferential Group;

(ii) Continuous non-conformance to quality standards by the Preferential Group

13.2 Each case shall be investigated and a formal written report prepared by the Procurement

Office in consultation with the Project Manager (PM).

15 RECORDING AND REPORTING BY THE CONTRACTOR

The CDC Project Manager shall monitor and ensure that SMME and LEP commitments are achieved

during the duration of the contract, the contractor shall report on monthly basis the achievements

thereof to the consultants and CDC Project Manager. The CDC Project Manager shall take all

necessary actions during the Performance of the Works to bring to the attention of the Contractor

when progress in the attainment of the tendered goal percentage(s) is lacking.

Supply Chain Manager

Andile Ntloko

…………………………………………….. …………………………………………………...

Signature Supply Chain Manager Date of approval