SUMMARY DOCUMENT A Copy of the full tender document … Tenders/Intathakusa RFPver2.pdf · A Copy of the full tender document and supporting documents must be collected from the council

Ethekwini: Request for Proposals

SUMMARY DOCUMENT

A Copy of the full tender document and supporting documents must

be collected from the council office as per tender advert.

Request for proposals: Requests for proposals are hereby invited

from interested tourism/resort operators to submit business

proposals to Ethekwini Municipality for tourism

operating/management opportunities as identified in the Intathakusa

Business Plan.

Ethekwini Municipality (EM)

Ethekwini Municipality requests proposals for the commercial use of Intathakusa Tourist Retreat

facility at North of Inanda Dam on Portion 139 (of 5) of the Farm Inanda No. 818 through a

management agreement. Occupation of the site on which the lodge is situated will be in terms of a

lease.

This request for proposals (RFP) for tender number LED10/2009;Intathakusa Retreat is issued by

eThekwini Municipality in accordance with Municipal Finance Management Act.


Contents 1. Important general notes

2. The Investment opportunity

3. The Role of Institutions

3. Assistance to bidders

4. Site due diligence

5. Other due diligence

6. What must be included in the bid and how to submit it

7. The date and place for submitting bids

8. How the bids will be opened

9. Incomplete bids

10. How the bids will be evaluated and the preferred bidder chosen

11. Finalising the management and lease agreements

12. Bid timetable

Annexure 1:Background Project Information

Annexure 2: Financial information

Annexure 3: Business and operational plan

Annexure 4: Development and environmental proposal

Annexure 5: Risk matrix

Annexure 6: BEE proposal

Annexure 7: Declaration of Interest

Annexure 8: Declaration of Municipal Fees

Annexure 9: Bid cover sheets

Annexure 10: Draft Conditions of Lease


1. Important general notes

1.1 This RFP overrides all other eThekwini Municipality (EM) communications to bidders

about this investment opportunity.

1.2 No verbal discussion with any staff or advisor of Ethekwini Municipality can change, add

to or clarify any of the terms and conditions contained in this RFP. Bidders should only

rely on written changes, additions or clarifications from duly authorised staff of EM,

circulated to each bidder. Email communications from EM to bidders will count as written

communications.

1.3 Bidders are responsible for all costs related to their bid. EM will not compensate bidders

for any costs, regardless of the outcome of the bid.

1.4 EM may change the timetable in point 11. It may also make other changes to the RFP, or

add to it, or provide clarification, at any time. EM may cancel the bid at any time without

prior notice, and may disqualify any bidder as provided for in this RFP.

1.5 EM will not be responsible for any costs or damages whatsoever if it makes any changes

to the bid, cancels the bid, or disqualifies any bidder. EM will not be responsible for any

costs or damages whatsoever if it exercises any other rights as described in this RFP or

available to it under the laws of the Republic of South Africa.

1.6 The bid is governed by the laws of the Republic of South Africa and this RFP.

2. The investment opportunity

2.1 eThekwini Municipality has laid the foundation of investing initially in infrastructure and

development of portion of a tourism retreat facility. The purpose of this tender is to seek

a private sector development partner and facility operator that will be granted rights to

manage and use the facility for commercial gain and to invest further in subsequent

phases through a management agreement in accordance with an approved Site

Development Plan.

2.2 Further project background and investment opportunity are provided in Annexure 1.


Note to Bidders Whilst it may be preferred that every effort is made by Bidders to bid according to

the approved Site Development Plan, it is not conditional to do so and if Bidders choose to deviate

from the plan, such a decision must be clearly motivated in an amended Business Case and

submission of relevant drawings. It should further be noted that any deviation may require a new

and/or amendments to the Environmental Authorisation and Development Approval granted which

will be to the cost of the bidder.

3. The Role of Institutions

The following institutions provide support to this project:

eThekwini Municipality : Facility Owner, Strategic investor attraction, Project Manager,

and bulk infrastructure supply, and contract management.

eThekwini Business Support Unit: Provision of training and business support to smme‟s

Durban Investment Promotion Agency: Investment promotion within eThekwini.

Durban Tourism: Marketing and promotion of developed facilities.

4. Assistance to bidders

EM has mandated the Economic Development Unit of the eThekwini Municipality to

provide site information and other assistance to bidders. The following supporting

information is provided in the tender document:

Aerial photo showing cadastral boundaries

Topography at 2m contour intervals

Geotechnical and Waste Disposal Report: Drennan Maud, 2005

Environmental Record of Decision, 2008

Development Application Approval Conditions, 2009

Known constraints (DMOSS, 100-year floodline, servitudes, and slopes known to be unstable)

SG Diagrams

Photographs taken from the ground

5. Site due diligence


5.1 A site visit for all interested bidders will be held at Intathakusa Retreat on 15 February

2010 at 11.00am at no cost to bidders. Site visit is not compulsory. Alternatively,

background and technical information will be available on the following website:

http://www.durban.gov.za/durban/government/scm/

6. Other due diligence

Each bidder will be responsible for its own due diligence investigation of the investment

opportunities, environmental compliance requirements, proposed contractual terms and

anything else relating to this RFP. Neither EM nor any of its staff or advisors makes any

suggestions or guarantees, directly or indirectly, about anything affecting this RFP, the

project site, or the tourism opportunities.

7. What must be included in the bid and how to submit it

7.1 Bids and all related correspondence and documents must be in English.

7.2 Bidders must submit in closed envelopes. five copies of: the following:

the financial projections as per guide provided for in Annexure 2,

a business and operational plan, in the format given in „Annexure 3: Business and

operational plan‟

a development and environmental proposal, in the format given in „Annexure 4:

Development and environmental proposal‟

a completed risk matrix, in the format given in „Annexure 5 Risk matrix‟

a BEE proposal, in the format given in „Annexure 6 BEE proposal‟

a tax clearance certificate, issued by the South African Revenue Service (SARS)

prior to Bid Evaluation date, for each South African member of the bidder.

Attached Annexure 7 “Declaration of Interest” and Annexure 8 “Declaration about

municipal fees” must be completed and attached to the proposal

7.3 All information provided in the bid must be valid for 90 business days from the bid date.

7.4 Submitting a bid implies that the bidder knows and understands all the terms and

conditions set out in this RFP and under the applicable laws of the Republic of South

Africa, and that the bidder accepts these terms and conditions.

7.5 Refer to Annexure 9.for cover sheets that must be attached to each envelope.

Proposals that do not meet these requirements will NOT be considered for scoring.

http://www.durban.gov.za/durban/government/scm/


8. The date and place for submitting bids

One original copy of the Bid documents must be submitted to Tenders Box, Ground

Floor, City Engineers Building, 166 K.E Masinga Road (formerly Old Fort Road), Durban

for the attention of the Project Manager: P. Gilmore between the hours of 8.00am and

16.00pm before or no later than 11.00am on the 30th April 2010

Four further copies of the Bid Documents must be submitted after the closing date to

the Economic Development Unit, C/O P. Gilmore, 41 Magaret Mncadi Avenue, Rennies

House, 11th Floor to assist with speedily Bid Evaluation process.

9. Incomplete bids

9.1 The project assessment team (PAT), will check each bid to see whether all the

documentation that this RFP requires has been submitted correctly.

9.2 If a bid is not complete or something in it is not clear, the PAT may, but is not obliged to,

ask bidders for more information. Bidders will receive such requests for more information

in writing. No substantial changes to the bid will be asked for or allowed, except if there is

a clear mistake in the bid.


10. How the bids will be evaluated and the preferred bidder chosen

10.1 Adjudication of proposals.

a. Our Assessment Team will consider and assess your proposal, including any requests for oral presentations

b. The Assessment Team will present a report to the Bid Evaluation Committee of the Ethekwini Municipality

c. The Bid Evaluation Committee will make recommendations on an award, and the conditions of the awards to the Bid Adjudication Committee.

d. All proposers will be notified in writing of the decision/s of Bid Adjudication Committee.

Ethekwini Municipality reserves the right to not make an award.

10.2 Call for proposals

Request for Proposals (RFP) will be advertised in Ezasegagasini Metro which is a

supplementary to the Natal Mercury and Daily News.

Individual companies or joint ventures will qualify to bid. Companies responding to the

advertisement will be required to provide the detailed information, as outlined above in

Section 6, and will be offered the opportunity to meet with the Municipality‟s relevant

units to gain further understanding of the proposals required.

The tenders that meet the requirements will be evaluated on the following criteria and in

accordance with the Municipality‟s existing Targeted Procurement Policy and Guidelines

dated 14 October 2003 – 90/10 split:


FUNCTIONALITY EVALUATION CRITERIA Scoring

1 Financing plan (Annexure 2) 30

1.1 Has the bidder secured adequate finance to implement the project?

15

1.2 Is the basic cash flow model viable? 15

2 Business and operational plan (Annexure 3)

30

2.1 Management structure of the project team 5

2.2 Composition of project team 5

2.3 Experience of the project team in project management, marketing, social facilitation and other fields thought relevant by the proposed developer. – project delivery

5

2.4 Bidder‟s experience and track record in management of similar enterprises, and in similar target markets – facility management

5

2.5 Marketing and product branding plans 5

2.6 Programme for delivery 5

3 Development and environment proposal (Annexure 4)

30

3.1 Provision of Site Development Plan with respect to aspects raised in Annexure 4.

5

3.2 Area adequate proposals made for community benefit flows?

20

3.3 Provision of adequate Risk Matrix 5

EMPOWERMENT CRITERIA 10

See Annexure 6: “BEE scorecard”

Total points 100

Those proposers who score below 60 points on “Functionality” will not qualify for the bid.


10.3 The preferred bidder

The bidder that receives the highest score from the Functionality Score Sheet will be

appointed the preferred bidder. The bidder that receives the second highest overall score

will be appointed the reserve bidder. The Bid Adjudication Committee will make the final

decision.

11. Finalising the MANAGEMENT/ LEASE agreement

11.1 eThekwini Municipality Economic Development Unit will negotiate the Management

agreement and the lease agreement with the preferred bidder. Final rental will be

negotiated on the basis of the bidder‟s contribution and proposals made with respect to

community benefit flows.

11.2 eThekwini Municipality Real Estate Unit will be responsible to obtain the approval of the

relevant Committees of the Municipality to the LEASE agreement with the preferred

bidder.

11.3 Should EM and the preferred bidder fail to come to agreement on the management

agreement or the lease agreement conditions within six weeks (of what date), EM may

withdraw the appointment as preferred bidder and begin negotiations with the reserve

bidder.

12. Bid timetable

Event or process Date

RFP advertisement 29 January 2010

Site visit 15 February 2010

Bid closing date 30th April 2010

Bid short listings N/A

Presentations N/A

Bid evaluation 2 June 2010 *

Bid Adjudication/Institution Approval 9 June 2010 *

Announcement of preferred bidder and reserve bidder

15 June 2010 *

Negotiations 22 June 2010 *

Institution Approval N/A

Signature of lease and management agreements 1 July 2010 *

* anticipated/estimate dates


Contact Details:

Peter Gilmore Senior Project Manager Economic Development Unit ETHEKWINI MUNICIPALITY Ph: 031-3114227 Fax: 031-3321720 Cell: 083 3788737 [email protected]


Annexure 2: Financial information

Bidders must provide the following information.

1 The financing plan

Indicate how much capital will be needed, where it will come from (own capital, grants, loans) and

the expected amount and terms (interest rate, repayment period, security) of any proposed loans.

Specify whether the necessary financing has been secured, and provide appropriate proof.

2. A recent auditor’s report confirming that all the members of the bidder are solvent and liquid

If a member of the bidder does not produce audited financial statements, it must produce a

notarised statement of assets.

3. A cash flow forecast (net of VAT) for the proposed term (number of years) of the PPP agreement. This may be in a spreadsheet format of the bidder’s choice, but must at least present the following:

Start-

up

R’000

Year 1

R’000

Year 2

R’000

Year 3

R’000

Year 4

R’000

Year 5*

R’000

Cash inflows

Owners‟ capital

Loans received

Grants received

Cash from sales and other operating revenue

Cash from other sources

Total cash inflow (A)

Cash outflows

Project costs and startup expenses

Salaries, wages and staff costs


Start-

up

R’000

Year 1

R’000

Year 2

R’000

Year 3

R’000

Year 4

R’000

Year 5*

R’000

All other operating costs and expenses

Loan repayments

Replacement of equipment and vehicles

Total cash outflow (B)

Net cash flow

[A – B] before PPP fees and tax

* Adapt for the proposed term of the PPP


Annexure 3: Business and operational plan

Bidders should provide the following information, with back-up evidence wherever possible.

1. Special purpose vehicle constitutional information

While bidders are not required to form a special purpose vehicle (SPV) for the purpose of

bidding, the preferred bidder will have to confirm the management company structure that

will enter into a lease agreement. Bidders must therefore demonstrate that they have an

appropriate plan to create a management company by providing as much of the following

information as possible:

Bidder‟s name, address, telephones and fax numbers, and the trading name if this is

different from the registered name

Proposed directors of the SPV and their responsibilities

Place of registration (if applicable) and registration number (if applicable)

Memorandum and articles (or equivalent constitutive documents) (if applicable)

Shareholders‟ agreement (if applicable)

Direct shareholder(s) and their percentage shareholding or other beneficial interest or

participation (if there is more than one class or share or funding, give the percentages

to be held by each).

2. Rationale, background and capacity

The bidder‟s objectives

The bidder‟s track record on and knowledge of existing products or activities offered in

the tourism industry, including the size of existing operations in terms of turnover

Detailed description of existing facilities that will be managed and envisaged

development of remaining activities as per the approved Site Development Plan.

Programme for delivery.

Current operating standards, including an outline of any operations and procedures

manuals

Proposed organisational and staffing structures, including:

o management policies

o measures to transfer knowledge and expertise

o labour plan, including details of numbers of permanent and part-time staff that will

be employed, staff recruitment policies, and employment policies


Memberships and registrations (list any awards, accolades or ratings)

Curriculum vitae of shareholders, directors, management and staff

3. Market analysis

The bidder‟s track record in and knowledge of the market, including existing

relationships with tour operators and the travel trade (include references)

Target market (geographical, income, nature of activity, and so on)

Marketing channels

Product branding plans

Time taken to establish market

Growth in occupancy

Pricing range

Competitive analysis


Annexure 4: Development and environmental proposal

Note to institution Whilst it may be preferred that every effort is made by Bidders to bid according

to the approved Site Development Plan, it is not conditional to do so and if Bidders choose to

deviate from the plan, such a decision must be clearly motivated in an amended Business Case

and submission of drawings.

Bidders should provide the following information, with back-up evidence wherever possible.

1. Environmental impact assessment requirements (not required in the Submission, but will be considered as condition in Management Agreement)

a) Provide adequate plans for complying with the EIA requirements with respect to plan

deviation.

b) Provide adequate plans for complying with the EIA Record of Decision and Development

Approval Conditions.

2. Cultural, archaeological and natural resources (not required in the Submission, but will be considered as condition in Management Agreement)

a) Confirm that construction supervisors and crews and operational staff will be trained to

recognise chance finds‟ of cultural, archaeological and natural resources during

construction, and that all such finds during the construction and operational phases (i) will

remain undisturbed, undamaged and will not be removed and (ii) will be brought to the

immediate attention of AMAFA.

3. Carrying capacity

a) Notwithstanding the Development Plan approved for the site, Bidders must re-confirm the

measurable capacity of the business (for example number of guest beds and staff beds,

and planned guest and vehicle operators) as per their market assessments.

b) Describe steps to be taken to minimise the impact on the environment.

4. Staff accommodation and safety

a) Give an estimate of the total number of staff, including number to be accommodated on site

(including family members) and off site.

b) If the bidder is requesting that staff be housed at the project site, include this request,

indicating the number of staff.

c) Describe proposed operating standards for facilities, including a detailed operations and

procedures manual with the following minimum information:


safety, emergency and rescue procedures

equipment standards and adherence to the specifications of the relevant authorities

management and replacement of equipment

ongoing assessment and improvement of skills.

5. Visual impacts

a) Provide drawings of development footprint and all structures (including on site staff

accommodation) and associated infrastructure (applicable to plan deviation only).

b) Describe building materials to be used for all structures.

c) Describe efforts to minimise the visual impacts of the development, including

lighting.

d) Provide locations of lightning arrestors and radio masts on the project site and

details of how the visual impacts of these will be minimised.

6. Bulk infrastructure (whilst bulk services are provided to the site, any additional requirements to support any plan deviations, sections 6.1 and 6.2 must be complied with)

6.1 Electricity

a. Identify electricity source(s).

b. Provide location(s) of infrastructure needed for these source(s), including approximate

alignment of supply and reticulation networks.

c. Describe efforts to ensure they comply with national and municipal requirements.

6.2 Water

d. Identify water source(s).

e. Estimate total extraction requirement.

f. Describe intended water conservation and recycling measures in design and operation.

6.3 Roads and tracks

g. Provide number of kilometres of internal roads and tracks to be constructed, including

type and quantity of traffic expected.

h. Acknowledge that while the operator may use existing roads and tracks within project

site, it will take responsibility for maintaining these to municipality‟s satisfaction

i. Accept the terms and conditions for road development and maintenance as set out in

the municipality‟s requirements.

7. Waste management (not required in the Submission, but will be considered as condition in Management Agreement)

7.1 Liquid wastes


a. The liquid waste management plan must make provision for the development and

operational phases.

b. Detail the proposed wastewater management system capable of ensuring that liquid

wastes meet or exceed South African water quality regulations prior to discharge or

reuse, including an estimate of the approximate. volume of wastewater the project will

produce daily and a description of the method of disposal, treatment and recycling the

bidder intends to install.

c. Confirm that monthly wastewater monitoring will be undertaken and these reports

made available to eThekwini Municipslity.

d. Confirm that fuels, solvents and other liquid wastes will be stored in vessels equipped

with secondary containment structures, removed from the project site, and disposed of

in compliance with national, local and municipal requirements.

7.2 Solid wastes

e. The solid waste management plan must make provision for construction and

operational phases.

f. Estimate volumes of solid waste, by different waste categories, that the development is

expected to generate.

g. Describe the operator‟s proposed methods for disposing of and/or recycling solid

wastes.

h. Acknowledge that landfills are not permitted.

i. Alternatively, request to construct an incinerator within the project site, if applicable,

with the understanding that this will be subject to the findings of the EIA.

8. Fire management (not required in the Submission, but will be considered as condition in Management Agreement)

a) Agree to the provision of an on-site fire management plan .

b) Agree to subject final designs and safety specifications of all structures to a fire

safety audit carried out by a qualified fire safety expert.

c) Agree to develop and maintain an adequate fire perimeter around all permanent

structures by means other than burning.

9. Commitments

Acknowledge that the operator must comply at all times with eThekwini‟s Environmental

Guidelines which may change from time to time.

10. Project specific criteria


Framework for Community Beneficiation plan: The Framework is a guide for bidders

to make proposals with respect to community benefits. This Framework will also

form the basis for negotiating the long term lease conditions. Participants must

demonstrate that they have made provision for the upliftment, advancement and economic

empowerment of historically disadvantaged persons and communities living within

Intathakusa and surrounding areas. Economic empowerment should include equity

participation by historically dis-advantaged persons, and emerging businesses in the City

should be given the opportunity to supply the new industry with goods and services.

1. Measures to be undertaken by the Operator during construction for any extensions

to the facility:

The appointed construction contractor will be subject to comply with BEE Charter on

Construction. The charter compels the contractor to comply with the following;

1.1 Preferential Employment: Employment of Un-skilled labour will be all sourced from

Intathakus area. Skilled labour: Skilled artisans & tradesman will be recruited from

Intathakusa area, were such skills are unavailable in the community they will be

sourced elsewhere. NB: This should by no means compromise quality of the product

output.

1.2 Preferential Procurement: The above also applies to include preferential procurement

of services from SMME‟s with the view of prioritizing local SMME‟s for suppliers of

goods and services.

2. Operator’s Direct Interventions:

- Small Medium & Macro Enterprises (SMME) Training Programme

Consideration is being given by the Operator to run a training programme on various

topics pertinent to SMME operators. This will be run through a third party accredited

agent during the operation and any construction related phases of the facility and will be

open to a specific number of SMME operators from the Intathakusa communities.

Note: It is proposed that the candidates for the programme will be determined by

the eThekwini Municipality in consultation with the Operator. The Operator undertakes

to contribute the required funds for this programme.


- Enterprise Development:

The Operator will be required to formulate a strategy to assist in the development of

enterprises within the Intathakusa community.

Note: The detail of the above strategy is undetermined at this time and will be

confirmed in consultation with the Operator. It is proposed that enterprises that will be

legible for any programmes / initiative driven by the Operator will be determined by the

eThekwini Municipality in consultation with the Main Contractor

- Skill development:

The Operator and its main contractor is to conduct an apprenticeship / job skilling

programme for various trades/skills during any construction and during operations of

the facility after which they will receive a certificate or reference indicating the skills

obtained and their various proficiency levels.

Note: The detail of the programme that will be on offer are yet to be determined. It

is proposed that candidates for the programme be determined by the eThekwini in

consultation with the Main Contractor.

- Capital Investment on Community Facilities:

Consideration must be given by the Operator to formulate a Corporate Social

Investment programme.

Note: It is proposed that activities within the programme be determined in

conjuction with the Municipality. The Operator undertakes to contribute the required

funds for this initiative

- Operator is encouraged to give preference to employment for skilled workers but cannot

be directly enforced but will be highly encouraged.

- Socio-Economic Development:

The Operating Company will be required to formulate a CSI strategy. NB: The project

should be identified jointly with the Municipality and affected communities.


- Employment:

Where reasonably possible the operator must source its employees for the operation of

the facility from the Inathakusa area, unless such skills are unavailable.

Provide estimates of the number of job opportunities that will be created.


Annexure 5: Risk matrix

Note to institution[Adapt this risk matrix to the particular lease]

Type of risk General description of risk Project-

specific risk

Mitigation

measures

Allocation of risk

(institution/ private party/

shared)

Financing The required capital for capex and opex may not be able to raised; loans may not be able to be repaid; tax obligations may not have been fully taken into account or may change; fluctuating inflation, interest rates, and currencies may affect assumptions

Supporting infrastructure

Supporting infrastructure may be inadequate to sustain the enterprise

Planning, design and construction

Planning consents may not be adequate in the event of any deviations from current designs, the design may not be fit for the purpose; construction may not be completed on time and in budget

Utilities Utilities may not be fully available or may cause delays

Environment and heritage

Liability for losses caused by environmental or heritage damage or delays

Maintenance The costs of maintenance to required standards may vary from projections or maintenance may not be carried out

Operations Any factors (other than force majeure) that may impact on operations

Market, demand, volume

The demand for the product may be less than projected

Political Unforeseeable conduct by any government institution may adversely affect the project.

Force majeure Unexpected events beyond


Type of risk General description of risk Project-

specific risk

Mitigation

measures

Allocation of risk

(institution/ private party/

shared)

either party‟s control


Annexure 6 BEE SCORECARD

CONDITIONS PERTAINING TO TARGETED PROCUREMENT AND BLACK ECONOMIC EMPOWERMENT

1. BACKGROUND

The eThekwini Municipality has committed itself to the following key priorities with

respect to all procurement dealings:

Increased usage of local resources Redressing of skewed employment and ownership patterns through black economic empowerment

Creation of Opportunities for job creation and poverty alleviation (Community participation)

Stimulation of Skills Development and Transfer

Fast tracking the Growth and ensuring sustainability of SMME‟s

It has therefore tried to keep abreast of developments Nationally with regard to Black Economic

Empowerment in terms of the recent revision of its own procurement policy and legislation such as:

Constitution of the RSA

Preferential Procurement Policy Framework Act

Broad-Based Black Economic Empowerment Act

Construction Industry Development Board Act

Employment Equity Act

Skills Development Act

For the purposes of determining the degree of preference to be accorded to tenderers, and to set

minimum targets, the eThekwini has chosen a multi-pronged empowerment strategy, which

includes inter-alia the following:

A BEE Scorecard

A preferential points scoring mechanism.


This document therefore outlines the specification.


2. DEFINITIONS

Historically Disadvantaged Individual (HDI): The definition includes Black, Women, and

Disabled Individuals and preference has been given to all these target groups who, due to the

apartheid policy that had been in place, had no franchise in national elections prior to the

introduction of the Constitution of the Republic of South Africa, 1983 (Act no 110 of 1983) or the

Constitution of the Republic of South Africa, 1993 (Act No 200 of 1993) (the Interim Constitution).

Provided that a person, who obtained South African citizenship on or after the coming to effect of

the Interim Constitution, is deemed not to be an HDI.

Priority Population Group (PPG): Black Individuals who fall into population groups that were not

offered a franchise in the national elections before or after the introduction of the 1984 tri-cameral

parliamentary system and only received a franchise during 1994.

Black Business Enterprise (BBE): At least 26% Black Owned in terms of equity and voting

rights/powers, with a corresponding management representation at all levels.

Priority Business Enterprise (PBE): At least 26% Owned by individuals which are from the

Priority Population Group in terms of equity and voting rights/powers, with a corresponding

management representation at all levels.

Women Business Enterprise (WBE): At least 26% Women Owned in terms of equity and voting

rights/powers, with a corresponding management representation at all levels.

Disabled Persons Business Enterprise (DPBE): At least 26% Disabled Owned in terms of

equity and voting rights/powers, with a corresponding management representation at all levels.


“Disability” means, in respect of a person, a permanent impairment of a physical, intellectual, or

sensory function, which results in restricted, or lack of, ability to perform an activity in the manner,

or within the range, considered normal for a human being.

SMMEs: Small, Medium and Micro Enterprises.

Influenced Enterprise: 'Influenced' in a category is when ownership in that particular category is

between 26 and 50 percent, with corresponding management representation at Board, Executive

and Operational levels.

Empowered Enterprise: 'Empowered' in a category is when ownership in that particular category

is between 51 and 75 percent, with corresponding management representation at Board,

Executive and Operational levels.

Substantially Owned Enterprise: 'Substantially owned' in a category is when ownership in that

particular category is between 76 and 100 percent, with corresponding management

representation at Board, Executive and Operational levels.

Local Content/Resources: Preference points shall be allocated in terms of the location of the

enterprise where applicable in the following order of preference: eThekwini Municipality Area

(EMA); Kwa Zulu Natal (KZN); South Africa (SA)

Commercially Useful Function: The performance of real and actual work, or the provision of

services, in the discharge of any contractual obligation, which shall include but not be limited to the

performance of a distinct element of work which the business has the skill and expertise to

undertake, and the responsibility for management and supervision.


Contract: A legally binding agreement between the Employer and the Contractor for the latter to

provide Goods, Services, Engineering and Construction Works, or Professional Services in return

payment by the former.

Contractor: Any person, body, or legal entity who is under contract to the Employer for the

performance of the Contract. A Tenderer whose tender has been accepted becomes a Contractor.

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.

Contract Participation Goal (CPG): The value of work subcontracted to enterprises or

businesses factored according to their level of HDI/PPG Equity ownership as evaluated in terms of

the eThekwini Municipality Targeted Procurement Policy

Direct Preference: A preference points system, which awards tenders on the basis of points for

price and/or the procurement developmental objectives of the eThekwini Municipality.

Employer: The person or body entering into a Contract for the supply of Goods, Services,

Engineering and Construction Works, or Professional Services.

Executive Director: A partner in a partnership, 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 their other partners, co-directors or co-

members, as the case may be, bears the risk of business and takes responsibility for the

management and liabilities of the partnership, company, or close corporation.


Manufacturer: A firm that operates or maintains a factory or establishment that produces on its

premises materials or supplies required by the Prime Contractor for the performance of the

Contract.

Owned: Having all the customary incidents of ownership, including the right of disposition, and

sharing all the risks and profits. Commensurate with the degree of ownership interests as

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

arrangements.

Preferential Procurement Policy: A procurement policy which uses procurement as an

instrument of social policy in South Africa to affirm the changed environment, government‟s socio-

economic objectives and the principals of the Preferential Procurement Policy Framework Act

(2000).

Prime Contractor: A contractor who contracts with an employer as the principal or main contractor

or as a joint venture partner to such contractors, to provide goods, services and works.

Supplier: A firm that:

Owns, operates or maintains a store, warehouse or other establishment 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 the products.

Targeted Procurement: A system of procurement which provides employment and business

opportunities for marginalised individuals and communities, enables procurement to be used as an

instrument of social policy in a fair, equitable, competitive, transparent and cost-effective manner,

and permits and social objectives to be quantified, measured, verified and audited.


3. BEE SCORECARD & PREFERENCING SCHEDULE

The Contractor/Joint Venture may attain a maximum of 10 points, in respect of procurement

preferences, which can be achieved based on:-

The BEE status of the Tenderer. (BEE contributions of members of a Joint Venture will be calculated in proportion to their individual contribution percentages).

The level of skills development will be calculated in terms of the eThekwini Municipality Targeted Procurement Policy.

The location of the Tenderer. (Points for location of members of a Joint Venture will be calculated in proportion to their individual contributions).

Following sections outline in detail the various elements of the scorecard and the points calculation

mechanisms.

3.1 Conditions associated with the granting of preferences

The tenderer who claims a preference, undertakes to maintain Ownership, Management control

and Employment equity, of not less than that tendered in terms of the BEE Scorecard and required

to obtain the preference points, for the duration of the Contract.

1.1.1.1.1.1

1.1.1.1.1.2


1.1.1.1.1.3 3.2 Key areas of the BEE Scorecard

In implementing the scorecard the following key areas will be considered:

Equity Ownership

The BEE contribution shall be calculated in respect of the value of work undertaken by the

contractor or members of the joint venture (excluding the value of the work undertaken by domestic

subcontractors) according to the following formula for each of the targeted areas:

S = T x (W - Min) / (Max – Min)

Where:

S = the weighted average actual score

W = the weighted average actual percentage contribution calculated in

respect of the value of work undertaken by the contractor or members of

the joint venture (excluding the value of the work undertaken by domestic

subcontractors)

T = the maximum score in the targeted area

Min = the minimum percentage in the targeted area


Max = the maximum percentage in the targeted area

The totals for each of the target areas will then be added together to give the category Total Score.

This Total Score will then be divided by the Maximum Total for the category and multiplied with the

category weighting to give the Actual Score for the Category.

NB: Zero preference points will be given below the minimum levels set for each of the targeted

areas/groups. Here minimum levels will be:

Black PPG Women Disabled

26% 26% 5% 1%


Management and Control

The BEE contribution shall be calculated in respect of participation of the Targeted Individuals at

Executive, Senior and Middle Management levels on the project according to the following

formula for each of the targeted areas:


Where:





subcontractors)










Black PPG Women Disabled

30% 26% 5% 1%


1.1.1.1.1.3.1.1 Employment Equity

For Employment Equity, the figures to be used are the actual average percentages in the various

target categories. These will be used from the most recent EEA2 forms submitted to the

Department of Labour for existing companies, but in the case of Joint Ventures and special cases,

organograms must be produced to verify these.

The BEE contribution shall be calculated in respect of participation of the Targeted Individuals at

levels other than Executive, Senior and Middle Management according to the following formula for

each of the targeted areas:


Where:





subcontractors)










Black PPG Women

75% 51% 15%


BEE Scorecard

Black

PPG

Woman

Disabled

Total

Score

Max Total

Weighting

A

c

t

u

a

l

S

c

o

r

e

EQUITY OWNERSHIP (EO)

Maximum Score 1.25 2.5 1.25 1 6 2

Minimum % 26 26 5 1

Maximum % 100 100 100 100

Actual %

Weighted%

MANAGEMENT & CONTROL (M&C)

Maximum Score 1.25 2.5 1.25 1 6 2

Minimum % 30 26 5 1

Maximum % 100 100 100 100

Actual %

Weighted%

EMPLOYMENT EQUITY (EE)

Maximum Score 1.25 2.5 1.25 1 6 2

Minimum % 75 51 15 2

Maximum % 100 100 100 100

Actual %


Weighted%

SKILLS DEVELOPMENT (SD)

Levy paid ito Total Payroll R 1.0 52

(a) Actual claim iro Skills

Development

(b) Technical Bursaries and

expenditure incurred in developing

the relevant professions or industry in

South Africa NOT included in (a)

above.

R .....................................................

R ......................................................

Ratio of (a) and (b) to levy paid

LOCAL BUSINESS ENTERPRISES ito % Participation (LBE)

South Africa

0.5

Tick Applicable

(one only)

2 6

KwaZulu Natal 1

eThekwini Municipal Area 2

PREFERENCE SCORE in terms of 90 / 10

Overall Total Score

Notes

Only insert figures in shaded areas.

For EO, M&C, and EE, the figures to be used are the actual percentages in the various target categories.


For EE, the percentages to be used are those for permanent employees only.

The SD Levy is based on the actual claim from the Receiver in terms of Rands spent on training in relation to the amount paid, limited to 70% of total payment.

Technical Bursaries and development expenditure claimed are to be proven by the tenderer. The necessary documentation is to be attached to the submission.


Annexure 7 DECLARATION OF INTEREST

Project: Requests for proposals are hereby invited from interested

tourism/resort operators to submit business proposals to Ethekwini

Municipality for tourism operating/management opportunities as

identified in the Intathakusa Business Plan.

1. Any legal person, including persons employed by the principal, or persons having a kinship

with persons employed by the principal, including a blood relationship, may make an offer

or offers in terms of this invitation to bid. In view of possible allegations of favouritism,

should the resulting bid, or part thereof, be awarded to persons employed by the principal,

or to persons connected with or related to them, it is required that the bidder or his/her

authorised representative declare his/her position in relation to the evaluating/adjudicating

authority and/or take an oath declaring his/her interest, where-

- The bidder is employed by the principal; and/or

- the legal person on whose behalf the bidding document is signed, has a

relationship with persons/a person who are/is involved in the evaluation and or

adjudication of the bid(s), or where it is known that such a relationship exists

between the person or persons for or on whose behalf the declarant acts and

persons who are involved with the evaluation and or adjudication of the bid.

2. In order to give effect to the above, the following questionnaire must be completed and

submitted with the bid.

2.1 Are you or any person connected with the bidder, employed by the principal?


YES / NO

2.1.2 If „YES”, state particulars:


2.2 Do you, or any person connected with the bidder, have any relationship (family, friend,

other) with a person employed by the principal and who may be involved with the

evaluation and or adjudication of this bid?

YES / NO

2.2.1 If “YES”, state particulars:

2.3 Are you, or any person connected with the bidder, aware of any relationship (family, friend,

other) between the bidder and any person employed by the principal who may be involved

with the evaluation and or adjudication of this bid?

YES / NO

2.3.1 If “YES”, state particulars:


I, the undersigned Certify that the information furnished in paragraphs 2.1 to 2.3.1 above is

correct. I accept that the Ethwkwini Municipality may act against me should this declaration prove

to be false, and acknowledge that such action may include (but not be limited to) non-

conisderation of my proposal in respect of this project.

Signature

Full names

Date

Capacity of signatory

Address

Phone

E-mail


Annexure 8

DECLARATION ON MUNICIPAL FEES

Project: Requests for proposals are hereby invited from interested

tourism/resort operators to submit business proposals to Ethekwini

Municipality for tourism operating/management opportunities as

identified in the Intathakusa Business Plan.

I/We do hereby declare that the Municipal fees of the company known as:

are, as at the date of the tender closing, fully paid up, or arrangements have been concluded with

the Municipality to pay the said fees:

1.1.1.1.1.4 Account Account number

1.1.1.1.1.5

Electricity

Water

Rates

JSB levies


I/We acknowledge that should it be found that the Municipal fees are not up to date, the

Council may take such remedial action as is required, including non-consideration of my/our

proposal.

Signature

Date

Name of signatory

Capacity of signatory

Address

Phone

E-mail


Annexure 9: Bid cover sheets Cover sheets which include the following information must be attached to each envelope:

Bid for the commercial use of [name of project site] at [name of site location] through a

lease agreement

ENVELOPE 1: FUNCTIONALITY AND BEE BIDS

Name of bidder:

Postal address:

Street address:

Telephone:

Cell phone:

Fax:

Contact person:

Email address:

Signature of bidder:

Date:

Capacity in which bid is signed:

Signature of this document means that the bidder accepts the terms and conditions of this bid. Failure by the bidder to sign this form may disqualify the bid.
