Online Vending Agency RFP - Eskom · Background Eskom is already vending prepaid electricity through five National Online Vending Agents that interface with its Online Vending Server.

Online Vending

Agency RFP CORP:3024

Clarification Session 03 December 2014

Housekeeping Rules

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Powering your

world

The Aim of the Clarification Session

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Key Topics – ‘Business of the day’

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Background

Commercial Requirements

Objectives of the RFP

Eskom Online Vending Model

Functional & Technical Requirements .

Supplier Development & Localisation (SD&L)

Quality Requirements

‘Online Vending Agency RFP Clarification’

Commercial

Requirements

Background

Eskom is already vending prepaid electricity through five National Online Vending Agents that interface with its Online Vending Server.

In order to expand the vending operations and serve our customers better, Eskom wishes to identify suitable online vending agents with operational vending systems and infrastructure that complies with the XMLVend specification as a vending protocol.

Eskom intends to award contracts to a maximum of 10 (ten) qualifying service providers.

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Online Vending Agency RFP

Clarification Session

CORP 3024

Supplier Development and

Localisation (SD&L)

in line with PPPFA

Evaluation Criteria

Functionality

Preference points

(B-BBEE)

Supplier Preference

Supplier Development

& Localisation (including Enterprise

Development)

Phase 1

Phase 2

Phase 3

Phase 4

Preference will be given in the following order:

• Enterprise s Owned by Black People Living with Disabilities

(BPLwD)

• Black Youth Owned Businesses (BYO)

• Black Women-Owned Businesses (BWO)

• Black Owned Businesses (BO)

• Other Suppliers

B-BBEE

• B-BBEE certificate will be evaluated according to

90/10 rule

N/B Price will not be applicable

To be negotiated with the successful tenders

• Local content

• Sub-contracting

• Skill development

• Job creation

Phase 2: Preference points (B-BBEE)

B-BBEE Status Level of Contributor Number of points (90/10 system)

1 10

2 9

3 8

4 5

5 4

6 3

7 2

8 1

Non-compliant contributor 0

The evaluation matrix essentially provides points on the basis of a level

contribution attributed to each supplier with Level 1 contributors being

the most favoured.

Enterprise Development - (Mentorship Programme) The table below indicates requirements for Bidders that are categorised as Large

Measured Enterprise (LME), with a turnover of R35m and above, according to the

B-BBEE codes of good practice.

Mentorship Eskom’s Target

Emerging supplier development

(e.g. provide assistance or support with

development of their systems to comply with

Eskom’s technical specification)

2

Mentees will be coming from the evaluation

process undertaken by Eskom = CORP 2801

Sub-Contracting

• Skills transfer shall form scope of the mentorship programme.

• The selected emerging service providers will be contracted as sub agents by

the Principal Agent, while being mentored (for the duration of the contract – 3

years).

• The mentorship shall form part of the contractual obligations with qualifying

‘Measured Enterprises’ (LMEs)

• An implementation plan will be required, signed and submitted 30 days after

contracting.

Criteria for Enterprise Development

Service providers who are tendering for national will be expected to mentor a minimum of 2 emerging suppliers in line with the following:

• Eskom will be awarding contracts to a maximum of 10 (ten) service providers,

• The selected companies will then be checked if they are ‘Measured Enterprises’ (LME), with a turnover of R35m and above, according to the B-BBEE codes of good practice, so that the requirement for mentoring 2 emerging service providers could be applied.

• The emerging service provider mentees will be coming from the evaluation process undertaken by Eskom, and these will be service providers that will have met the minimum compliance for the document and theory evaluation.

• These emerging service providers will have failed the minimum technical application compliance required by Eskom.

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Criteria for Enterprise Development

• The selected emerging service provider will be contracted as sub agents by ‘Measured Enterprises’ (LMEs), while being mentored (for the duration of the main contract – 3 years).

• The mentorship shall form part of the contractual obligations with qualifying ‘Measured Enterprises’ (LMEs)

• An implementation plan will be required, signed and submitted 30 days after contracting.

• The purpose of the implementation plan is for the approved ‘Measured Enterprises’ to demonstrate how they will implement the commitment on mentorship.

• The implementation plan will have time lines reviewed quarterly and quarterly reports will be required on the progress of mentorship.

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Skills Development

The table below should be completed only by Bidders who are categorised as

Qualifying Small Enterprise (QSE) and Exempted Micro Enterprise (EME)

Skills Type

Customer Service

IT Technician(Server & storage)

Marketing (Direct Sales)

Installation & Maintenance

C

Commercial Requirements



CORP 3024

What is New this time around ..?

Threshold = 1

Tech Test = 100%

Pass Mark = 80%

PPPFA

Tech Theory (Special cond)

Quality

(obj criteria)

04/12/2014 13

Contacts & Submission Deadlines

Eskom Representative during this Tender - Nokuthula Ntshingila

E-mail - [email protected]

Contact No. - 011 800 2874

Deadline of Tender submission - 18 December 2014

@ 10h00 South African Standard Time (SAST)

Deadline for Clarification of queries - 12 December 2014

Validity of this Tender - 120 days

Tender delivery address The Tender Office Centre

Eskom Megawatt Park

Opposite Main Reception

Desk Maxwell Drive Sunninghill

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mailto:[email protected]





Commercial Tender Returnables

Item List of Returnables Reference

1 COMMERCIAL

1.1 Cover Letter

1.2Confirm of Receipt of Addednda to Tender Documents (Mandatory for

award)A.1

1.3 Authority to submitt Tender documents (Mandatory for award) A.2

1.4 Completed Declaration of fair bidding practice (Mandatory for award) A.3

1.5 Probity of Close Family Members or Beneficiaries (Mandatory for award) A.4

1.6

Valid B-BBEE Certificate from an Accredited Verification Agency or a

letter from the Audit/Accounting Officer for the Exempted Micro

Enterprices (EMEs) (Mandatory for award and points allocation)

1.7Shareholders of the Tenderer and respective percentages of such

shareholding (Mandatory for award)A.5

1.8

If all/some of the shareholders listed in 1.6 above are entities they should

provide shareholders of such entities and their respective shareholding

percentages. (Mandatory for award)

1.9

If information in 1.7 and 1.8 is older than three months. Bidder's External

Auditors must issue letter confirmin current accuracy. (Mandatory for

award)

1.10A complete list of names and identity numbers of the directors of the

tendering house including the % of the shareholdings.

Commercial Tender Returnables cont….

1 COMMERCIAL

1.11Valid SARS Tax Clearance Certificate (IRP20) (applicable if the tenderer

is a South African tax payer)

1.12Valid IRP 30 SARS certificate if operating as a labour broker in terms of

the Income Tax Act No.58 of 1962 (Mandatory for award) Separate form

1.13 PAYE Supplier evaluation pack

1.14Schedule of Proposed Sub-Contractors/Associates (Mandatory for

Award)A.6

1.15

The agreement for any associations with other companies in the form of

joint venture, patnership or consortiums (Mandatory for Evaluations &

Mandatory for award) for the purpose of this tender (Only apply to JV's

and Consortia)

1.16 Declaration with regard to company or (Mandatory for award) A.7

1.17 Contact details of the Supplier (Mandatory for award) A.8

Technical Tender Returnables


2 TECHNICAL

2.1 Category Preference (Mandatory for award) B.1

2.2 Value Adds (Mandatory for award) B.2

2.3 Document Theory Evaluation Questionnaire (Mandatory for award) B.3

2.4

Practical Evaluation Criteria (Mandatory for Evaluation, award & point

allocation) Appendixes A-G

2.5

Technical Compliance Requirements

• Vending agency business model supported (XMLVend Compliance)

• Ability to support Online Vending (first line support, disaster recovery,

architecture)

• Point of sale device (Indication of devices that will be deployed)

Technical Compliance Requirements

• Vending agency business model supported (XMLVend Compliance)

• Ability to support Online Vending (first line support, disaster recovery,

architecture)

• Point of sale device (Indication of devices that will be deployed)

(Mandatory for Evaluation)

Financial Returnables


3 FINANCIAL RETURNABLES

3.1

Audited Financial Statements of the tenderer for the previous three (3)

financial years, or to extent that such statements are not available, for the

last year. Tenderers must note that in case of a venture or special

purpose vehicle (SPV) escpecially formed for this tender, The latest two

years sets of audited annual financial statements e.g. 2013/2012 and

2012/2011 for each participant in the JV OR For new organisation (Full

set management accounts with an independent review by an auditor for

each participant in the JV (Mandatory for Evaluation and award)

3.2

For incorporated joint ventures

The latest two years sets of audited annual The latest two years sets of

audited annual financial statements e.g. 2013/2012 and

2012/2011(Mandatory for Evaluation and award & points allocation)

3.3 Price adjustments and payment methods (Mandatory for Evaluation) C.1

3.4 Price Schedule/Rates (Mandatory for award & points allocation) C.2

Evaluation Criteria

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Evaluation criterion Stages of evaluation

Compliance and

conditions of tender

a) Paper / Theory evaluation (also be used for shortlisting )

b) Commercial tender returnables

Functionality Phase 1 a) Technical Evaluation

Preference points

(B-BBEE)

Phase 2

B-BBEE certificate

Preference Phase 3

Preference on this tender will be in line with Section 3.4.3 of the Eskom

Procurement and Supplier Management Procedure 32-1034 on the

Hierarchy of Supplier Preference, from Black Suppliers in the following

order. From Black suppliers, in the following order:

• Businesses owned by Black people Living with

• Disabilities

• Black Youth-Owned Businesses

• Black Women-Owned Businesses

• Small Black Enterprises

• Large Black Suppliers

Evaluation Criteria

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Evaluation criterion Stages of evaluation

Supplier

Development &

Localisation

Phase 4

To be negotiated with the successful suppliers on the following:

• Job creation

• Skills Development

• Sub-Contracting

Quality To be negotiated with the successful suppliers for completion before the

contract is awarded

High level dates

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Activity Envisaged Date

Advertisement in news papers

23 November 2014

Clarification Session 03 December 2014

Closing 18 December 2014

Evaluations Jan – April 2015

Adjudication Tender Committee May 2015

Negotiations May 2015

Award July 2014

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Key Objectives of this RFP To identify potential Vending Agencies that wish to vend

prepaid electricity tokens to Eskom customers.

To identify potential Vending Agencies that can provide a vending service in areas that have insufficient vending coverage at the moment.

To evaluate other Vending technologies or channels that might be proposed by Vending Agencies to provide improved services, provided that they utilise an XMLVend compliant interface to communicate with Eskom’s central online vending server.

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What is Online Vending?

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“Online Vending”, simply described, is a system that enable customers to purchase prepaid electricity via virtual or remote terminals located in retail outlets or in new or existing vending stations.

This system vends electricity from the main Eskom central server in real-time.

Compliance with the XMLVend Specification is critical for this operation and will be applicable to all Categories.

Full compliance with the XMLVend interface protocol. (Some clients may not implement all the required use cases). But, for the purpose of the technical evaluations, vending agents will be required to be tested for full XMLVend compliance regardless of the client terminals to be used.

Online Vending Service ‘Mantra’

Online Vending allows customers to purchase prepaid electricity tokens Anywhere, Anytime and Anyway*

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*Via legal & Eskom approved channels

Internet

Northern Cape

Western Cape

Eastern Cape

Kwa-Zulu Natal

Free State

Limpopo

Mpumalanga

North WestGauteng

Customer Service Operating Units

1) Northern & Western Cape

2) North West & Free State

3) Eastern Cape

4) Kwa-Zulu Natal

5) Gauteng

6) Mpumalanga

7) Limpopo

Northern Cape

Western Cape

Eastern Cape

Kwa-Zulu Natal

Free State

Limpopo

Mpumalanga

North WestGauteng

Northern Cape

Western Cape

Eastern Cape

Kwa-Zulu Natal

Free State

Limpopo

Mpumalanga

North WestGauteng1

2

3

7

6

5

4

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Eskom prepayment

customer base is

currently around

4.5 million.

Migration to Online Vending

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Retail Chain Stores ATM’s

Increased ‘National Vending Footprint & Accessibility’

through deployment of various point of sale devices / channels

Contact Centres

+/ 1600 Off-line Vending Agents

Merchants

Eskom Walk-In Centres

+

Real ti

me

No

t re

al ti

me

Internet

Prepaid Electricity Tokens used be sold from Eskom Walk-In Centres before +/- 1600 Offline Vending Agents were

appointed in the communities that Eskom is supplying directly. EasyPay pay points and vending outlets (Retail

Stores, Service Stations Banks etc) were later added to increase the options and expand the national footprint.

The current phase is that of implementing Online Vending and thus deploying multitudes of new virtual channels

Phase 1

Phase 2

Phase 3

Phase 4

Online Vending Model

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Credit

Uploads

Customer

Care &

Billing

Database

SAP

Online

Vending

Database

Client Machines

Gateway - Server

Cu

sto

me

r D

ata

Do

wn

loa

ds

Secure Eskom Environment External to Eskom

XMLVend

XMLVend

Fir

e

Wa

ll

Internet

Bank

Tra

ns

ac

tio

ns

Do

wn

loa

ds

Bank

Deposits

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Envisaged Service Relationship

Service Relationship Compact:

Eskom sign Service Level

Agreements (SLA’s) with

‘Principal Agents’

Principal Agents provide

service via ‘Sub-Agents’.

Sub-Agents not allowed to

further sub-contract.

Sub-Agents sell directly to

Eskom Customers.

Eskom still custodian of its

customers & enforce proper

customer service delivery.

Sub-Agents

Principal Agents

Eskom

Vending Agency Key Performance Areas

Vending

Agency

KPA’s

Guide to overall compliance

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CORP 3024

Technical

Requirements

Contents

33

XMLVend specification

Testing Process

Use Cases to be tested

Functionality Required

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XMLVend specification

XMLVend 2.1 is a secure and open web service based protocol that facilitates prepayment vending functionality between a single logical vending server and ‘n’ number of clients.

The generic XMLVend specification is needed for development since the Eskom specialised documents refer to the generic XMLVend specification.

However, the Eskom specialised version of XMLVend must be implemented by all parties who are interested to provide prepayment electricity vending for Eskom.

04/12/2014 35

RFP Issued

Clarification session

Tender submission and closure

Evaluations :

Technical compliance testing pre-arranged sessions

Contract award (cannot vend LIVE! yet)

Pre Commissioning – SSL and Issue Advice Confirmation Test

Vend GO LIVE!

Testing Process

Test Server

Testing Process (cont.)

Vendor

• Own client server

• Vending device to be used for requesting tokens

• Voucher / token printer / some display method

• Magnetic card encoder

• Meter card reader

Eskom

• LAN connectivity between the Reference Test server and the client server

• Reference Test server

• Magnetic tokens

• Meter cards

04/12/2014 36

Use Cases to be tested

Update Meter Key

Vend token for Magnetic Meters

Write and Update Customer Meter Cards

Customer Fault Reporting

Receipt layout

Issue ‘‘Advice Last Response’’

SSL

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Purchase Credit Token

Purchase Credit Token with ‘‘Debt Recovery Function’’

Purchase Credit Token with Debt Recover Function and Free Basic Electricity

Dispense Free Basic Electricity (FBE) Token

Reprint Token

Confirm Meter Details

Functionality Required

04/12/2014 38

Functionality Numeric Magnetic

Number only based vending Yes Yes

Purchase Credit Token, including:-

Purchase Credit Token with FBE

Purchase Credit Token with Debt Recovery

Purchase Credit Token with Over Recovery

Purchase Credit Token with Debt Recovery and FBE

Yes Yes

Collect FBE Token Yes Yes

Reprint Transaction Yes Yes

Pay Debt (manual selection to pay) Yes Yes

Account Payment (manual selection to pay) Yes Yes

Confirm Meter Details Yes Yes

Swipe Meter Card Yes Yes

Enter all data (Blind vending) Yes Yes

Capture Customer Fault Yes Yes

Update Meter Key Yes Yes

Encode meter card Yes Yes

Convert numeric to magnetic token No Yes

Produce magnetic tokens No Yes

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