Page 1 of 65 TRANSNET PORT TERMINALS an Operating Division of TRANSNET SOC LTD [Registration No. 1990/000900/30] REQUEST FOR PROPOSAL [RFP] FOR THE PROVISION OF CARGO HANDLING SERVICES FOR TRANSNET SOC LTD (REG. NO 1990/000900/30) OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER REFERRED TO AS “TPT”), AT THE PORT OF RICHARDS BAY, INCLUDING THE PROVISION OF MATERIAL HANDLING EQUIPMENT (FRONT END LOADERS, AND DUMP TRUCKS/ADT’s) ON AN AS AND WHEN REQUIRED BASIS, FOR A PERIOD OF TWO (2) YEARS. RFP NUMBER iCLM HQ 239/TPT ISSUE DATE: 14 January 2019 CLOSING DATE: 12 February 2019 CLOSING TIME: 10:00 BID VALIDITY PERIOD: 90 Business Days from Closing Date PREQUALIFICATION CRITERIA - ONLY RESPONDENTS FALLING IN THE FOLLOWING CATEGORIES MAY RESPOND TO THIS RFP: • MINIMUM BBBEE LEVEL 2
65
Embed
REQUEST FOR PROPOSAL [RFP] - govpage.co.za · request for proposal [rfp] for the provision of cargo handling services for transnet soc ltd (reg. no 1990/000900/30) operating as transnet
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1 of 65
TRANSNET PORT TERMINALS
an Operating Division of TRANSNET SOC LTD
[Registration No. 1990/000900/30]
REQUEST FOR PROPOSAL [RFP]
FOR THE PROVISION OF CARGO HANDLING SERVICES FOR TRANSNET SOC LTD (REG.
NO 1990/000900/30) OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER
REFERRED TO AS “TPT”), AT THE PORT OF RICHARDS BAY, INCLUDING THE
PROVISION OF MATERIAL HANDLING EQUIPMENT (FRONT END LOADERS, AND DUMP
TRUCKS/ADT’s) ON AN AS AND WHEN REQUIRED BASIS, FOR A PERIOD OF TWO (2)
YEARS.
RFP NUMBER iCLM HQ 239/TPT
ISSUE DATE: 14 January 2019
CLOSING DATE: 12 February 2019
CLOSING TIME: 10:00
BID VALIDITY PERIOD: 90 Business Days from Closing Date
PREQUALIFICATION CRITERIA - ONLY RESPONDENTS FALLING IN THE FOLLOWING
CATEGORIES MAY RESPOND TO THIS RFP:
• MINIMUM BBBEE LEVEL 2
Page 2 of 65
SCHEDULE OF BID DOCUMENTS
Section No Page
SECTION 1 : NOTICE TO BIDDERS ................................................................................................................. 4
1 INVITATION TO BID .............................................................................................................................. 4
3. “AS AND WHEN REQUIRED” CONTRACTS ............................................................................................... 33
4. EXCHANGE AND REMITTANCE ............................................................................................................... 31
5. SERVICE LEVELS .................................................................................................................................. 33
6. TOTAL COST OF OWNERSHIP AND CONTINUOUS IMPROVEMENT INITIATIVES ........................................ 34
SECTION 4 : PROPOSAL FORM AND LIST OF RETURNABLE DOCUMENTS .......................................................... 36
SECTION 5 : CERTIFICATE OF ACQUAINTANCE WITH RFP, TERMS & CONDITIONS & APPLICABLE DOCUMENTS . 41
SECTION 6 : RFP DECLARATION AND BREACH OF LAW FORM ......................................................................... 43
SECTION 7 : RFP CLARIFICATION REQUEST FORM ......................................................................................... 46
SECTION 8 : B-BBEE PREFERENCE POINTS CLAIM FORM ................................................................................ 47
SECTIION 9: CERTIFICATE OF ATTENDANCE OF COMPULSORY RFP BRIEFING ................................................. 54
SECTION 10: SUPPLIER DEVELOPMENT INITIATIVES ...................................................................................... 55
SECTION 11 : DECLARATION OF SUPPLIER DEVELOPMENT COMMITMENTS ..................................................... 59
Page 3 of 65
SECTION 12 : B-BBEE IMPROVEMENT PLAN ................................................................................................... 62
RFP ANNEXURES:
ANNEXURE A SCOPE OF WORK PICTURES
ANNEXURE B TECHNICAL RETURNABLE DOCUMENTS
ANNEXURE C PRICING SCHEDULE
ANNEXURE D SUPPLIER DEVELOPMENT PLAN
ANNEXURE E B-BBEE IMPROVEMENT PLAN
ANNEXURE F SD VALUE SUMMARY
ANNEXURE G SD BID DOCUMENT
APPENDIX i MASTER AGREEMENT
APPENDIX ii SD GUIDELINE
APPENDIX iii SBD 1 FORM
Page 4 of 65
THE PROVISION OF CARGO HANDLING SERVICES FOR TRANSNET SOC LTD (REG. NO 1990/000900/30) OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER REFERRED TO AS “TPT”), AT THE PORT OF RICHARDS BAY, INCLUDING THE PROVISION OF MATERIAL HANDLING EQUIPMENT (FRONT END LOADERS, AND DUMP TRUCKS/ADT’s) ON AN AS AND WHEN REQUIRED
BASIS, FOR A PERIOD OF TWO (2) YEARS.
Section 1: NOTICE TO BIDDERS
1 INVITATION TO BID
Responses to this RFP [hereinafter referred to as a Bid or a Proposal] are requested from persons,
companies, close corporations or enterprises [hereinafter referred to as an entity, Respondent or Bidder].
DESCRIPTION PROVISION OF CARGO HANDLING SERVICES
BID FEE AND BANKING DETAILS
This RFP may be downloaded directly from National Treasury’s e-Tender Publication Portal at www.etenders.gov.za free of charge.
INSPECT / COLLECT
DOCUMENTS FROM
Transnet Port Terminals
First Floor
Kingsmead Office Park
South Tower
Stalwart Simelane Street
Durban
ISSUE DATE AND COLLECTION DATE
DEADLINE
This RFP may be downloaded directly from National Treasury’s e-Tender Publication Portal at www.etenders.gov.za free of charge from 14 January 2019 until 21 January 2019.
Bidders that download the RFP off the Portal, they are required to send their contact details to the following address: [email protected] by 17 January 2019. This is to ensure that any required communication (e.g. addenda
to the RFP) in relation to this RFP reaches those intending to respond. Transnet will not be held liable if Bidders do not respond by this date and do not receive the latest information regarding this RFP with the possible consequence of either being disadvantaged or disqualified as a result thereof.
COMPULSORY BRIEFING SESSION
Yes
Refer to paragraph 2 for details.
CLOSING DATE 10:00 on Tuesday 12 February 2019
Bidders must ensure that bids are delivered timeously to the correct address.
As a general rule, if a bid is late or delivered to the incorrect address, it will not be accepted for consideration.
VALIDITY PERIOD 90 Business Days from Closing Date
Bidders are to note that they may be requested to extend the validity period of their bid, at the same terms and conditions, if the internal evaluation process has not been finalised within the validity period. However, once the adjudication body has approved the process and award of the business to the successful bidder(s), the validity of the successful bidder(s)’ bid will be deemed to remain valid until a final contract has been concluded.
With regard to the validity period of short-listed bidders, please refer to Section 1, paragraph 10.
Any additional information or clarification will be faxed or emailed to all Respondents, if necessary.
A compulsory pre-proposal RFP briefing will be conducted at Transnet Port Terminals, Port of Richards Bay,
Umhlanthuze Engineering Boardroom, on the 21st of January 2019, at 11:00 for a period of ± two (2)
hours. [Respondents to provide own transportation and accommodation]. The briefing session will start
punctually and information will not be repeated for the benefit of Respondents arriving late.
2.1 A Certificate of Attendance in the form set out in Section 9 hereto must be completed and submitted with
your Proposal as proof of attendance is required for a compulsory site meeting and/or RFP briefing.
2.2 Respondents failing to attend the compulsory RFP briefing will be disqualified.
2.3 Respondents are encouraged to bring a copy of the RFP to the site meeting and/or RFP briefing.
3 PROPOSAL SUBMISSION
Proposals must be submitted in a sealed envelope addressed as follows:
The Secretariat, Transnet Acquisition Council
RFP No: iCLM HQ 239/TPT
Description: THE PROVISION OF CARGO HANDLING SERVICES FOR TRANSNET SOC LTD (REG. NO 1990/000900/30) OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER REFERRED TO AS “TPT”), AT THE PORT OF RICHARDS BAY, INCLUDING THE PROVISION OF MATERIAL HANDLING EQUIPMENT (FRONT END LOADERS, AND DUMP TRUCKS/ADT’s) ON AN AS AND WHEN REQUIRED BASIS, FOR A PERIOD OF TWO (2) YEARS.
Closing date and time: 12 February 2019, 10:00
Closing address: [Refer to options in paragraph 4 below
All envelopes must reflect the return address of the Respondent on the reverse side.
4 DELIVERY INSTRUCTIONS FOR RFP
4.1 Delivery by hand
If delivered by hand, the envelope must be deposited in the Transnet tender box which is located at
the main entrance of the Office Block, Transnet Port Terminals, South Tower Building, Stalwart
Simelane Street, Durban and must be addressed as follows:
THE SECRETARIAT
THE SECRETARIAT
DIVISIONAL ACQUISITION COUNCIL
TRANSNET PORT TERMINAL SOUTH TOWER BUILDING
KINGSMEAD OFFICE PARK
STALWART SIMELANE STREET
DURBAN
4001
a) The measurements of the "tender slot" are 400mm wide x 100mm high, and Respondents must
please ensure that response documents or files are no larger than the above dimensions.
Responses which are too bulky [i.e. more than 100mm thick] must be split into two or more
files, and placed in separate envelopes, each such envelope to be addressed as required in
paragraph 3 above.
b) It should also be noted that the above tender box is located at the street level outside the main
entrance Transnet Port Terminals, South Tower Building, Stalwart Simelane Street, Durban in
and is accessible to the public 24 hours a day, 7 days a week.
Page 6 of 65
4.2 Dispatch by courier
If dispatched by courier, the envelope must be addressed as follows and delivered to the Office of the
Secretariat, Divisional Acquisition Council and a signature obtained from that Office:
THE SECRETARIAT
DIVISIONAL ACQUISITION COUNCIL
TRANSNET PORT TERMINAL SOUTH TOWER BUILDING
KINGSMEAD OFFICE PARK
STALWART SIMELANE STREET
DURBAN
4001
5 BROAD-BASED BLACK ECONOMIC EMPOWERMENT AND SOCIO-ECONOMIC OBLIGATIONS
As explained in more detail in the BBBEE Preference Points Claim Form in Section 8 and as prescribed
in terms of the Preferential Procurement Policy Framework Act (PPPFA), Act 5 of 2000 and its
Regulations, Respondents are to note that Transnet will award preference points to companies who
provide valid proof of their B-BBEE status using either the latest version of the generic Codes of Good
Practice or Sector Specific Codes (if applicable).
The value of this bid is estimated to exceed R50 000 000 (all applicable taxes included); and therefore
the 90/10 system shall be applicable. Despite the stipulated preference point system, Transnet shall
use the lowest acceptable bid to determine the applicable preference point system in a situation where
all received acceptable bids are received outside the stated preference point system.
Respondents are required to complete Section 8 [the B-BBEE Preference Point Claim Form] and submit
it together with valid proof of their B-BBEE Status as stipulated in the Claim Form in order to obtain
preference points for their B-BBEE status. Respondents are required at all times to comply with the
latest B-BBEE legislation and/or instruction notes as issued from time to time by the DTI.
PREQUALIFICATION CRITERIA - ONLY RESPONDENTS WITH MINIMUM BBBEE LEVEL 2 MAY
RESPOND TO THIS RFP.
Note: Failure to submit valid and original (or a certified copy of) proof of the Respondent’s
compliance with the B-BBEE requirements stipulated in Section 8 of this RFP (the B-BBEE
Preference Points Claim Form) at the Closing Date of this RFP, will result in
disqualification.
B-BBEE Joint Ventures or Consortiums
Respondents who would wish to respond to this RFP as a Joint Venture [JV] or consortium with B-
BBEE entities, must state their intention to do so in their RFP submission. Such Respondents must
also submit a signed JV or consortium agreement between the parties clearly stating the percentage
[%] split of business and the associated responsibilities of each party. If such a JV or consortium
agreement is unavailable, the partners must submit confirmation in writing of their intention to enter
into a JV or consortium agreement should they be awarded business by Transnet through this RFP
process. This written confirmation must clearly indicate the percentage [%] split of business and the
responsibilities of each party. In such cases, award of business will only take place once a signed copy
of a JV or consortium agreement is submitted to Transnet.
Respondents are to note the requirements for B-BBEE compliance of JVs or consortiums as required
by Section 8 [the B-BBEE Preference Point Claim Form] and submit it together with proof of their B-
Page 7 of 65
BBEE Status as stipulated in the Claim Form in order to obtain preference points for their B-BBEE
status.
Note: Failure to submit a valid and original B-BBEE certificate for the JV or a certified copy thereof at
the Closing Date of this RFP will result in a score of zero being allocated for B-BBEE.
5.1 Subcontracting
Transnet fully endorses Government’s transformation and empowerment objectives and when
contemplating subcontracting Respondents are requested to give preference to Exempted Micro
Enterprises (EMEs), Start-up companies and Qualifying Small Enterprises (QSEs) which are Black
Owned, Black Women Owned, Black Youth Owned, companies owned by Black People with Disabilities,
including any companies designated as B-BBEE Facilitators1.
Respondents are required to submit proof of the subcontracting arrangement between
themselves and the subcontractor. Proof of the subcontracting arrangement must include
a subcontracting agreement, which must be submitted together with the bid documents
on the closing date and time.
Respondents are to note that it is their responsibility to select competent subcontractors that meet all
requirements of the bid so that their bid is not jeopardised by the subcontractor when evaluated.
Respondents are responsible for all due diligence on their subcontractors.
If contemplating subcontracting, please note that a Respondent will not be awarded points for B-BBEE
if it is indicated in its Proposal that such Respondent intends subcontracting more than 25% [twenty-
five percent] of the value of the contract to an entity/entities that do not qualify for at least the same
points that the Respondent qualifies for, unless the intended subcontractor is an EME with the
capability to execute the contract.
Respondent/s are discouraged from subcontracting with their subsidiary companies as this may be
interpreted as subcontracting with themselves and / or using their subsidiaries for fronting. Where a
Respondent intends to subcontract with their subsidiary this must be declared in their bid response.
The contract will be concluded between the successful Respondent and Transnet, therefore, the
successful Respondent and not the sub-contractor will be held liable for performance in terms of its
contractual obligations.
A person awarded a contract may not subcontract more than 25% [twenty-five percent] 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 subcontracted to an EME that has the capability and
ability to execute the subcontract.
In terms of Section 8 of this RFP [the B-BBEE Preference Point Claim Form] Respondents are required
to indicate the percentage of the contract that will be sub-contracted as well as the B-BBEE status of
the sub-contractor/s.
1 The Minister of the Department of Trade and Industry has the power to designate certain Organs of State or Public Entities as B-BBEE Facilitators. For example, the South African National Military Veterans’ Association (SANMVA) has been designated as a B-BBEE Facilitator. As such they will be treated as having rights of ownership held 100% by Black People, 40% by Black Women and 20% by Black designated groups.
Page 8 of 65
5.2 B-BBEE Improvement Plan
Transnet encourages its Service Providers to constantly strive to improve their B-BBEE rating. Whereas
Respondents will be allocated points in terms of a preference point system based on its B-BBEE
scorecard to be assessed as detailed in paragraph 5 above, in addition to such scoring, Transnet also
requests that Respondents submit a B-BBEE improvement plan. Respondents are therefore requested
to indicate the extent to which they will maintain (only if the Respondent is a Level 1) or improve their
B-BBEE status over the contract period.
Respondents are requested to submit their B-BBEE Improvement Plan as an essential document with
their Proposals by completion of Annexure D appended hereto. [Refer to Section 12 and Annexure D
for further instructions]
5.3 Supplier Development Initiatives
Historically in South Africa there has been a lack of investment in infrastructure, skills and capability
development and inequality in the income distribution and wealth of a significant portion of the
population. There have been a number of Government initiatives developed to address these
challenges. In particular, the New Growth Path [NGP] and New Development Plan [NDP] aligns and
builds on previous policies to ensure the achievement of Government’s development objectives for
South Africa.
Transnet fully endorses and supports Government’s economic policies through its facilitation of
Supplier Development [SD] initiatives. Hence Respondents are required to submit their commitments
with regard to Supplier Development Initiatives over the duration of this contract.
Respondents are required to provide a commitment that the monetary value of all SD initiatives to be
undertaken by them will not be less than 30% [thirty percent] of the contract value.
All Respondents must refer to Section 10 for instructions and complete Section 11 [Declaration of
Supplier Development Commitments] as this is a essential returnable document.
The commitments made by the successful Respondents will be incorporated as a term of
the contract and monitored for compliance.
6 COMMUNICATION
6.1 For specific queries relating to this RFP, an RFP Clarification Request Form should be submitted to
[email protected] before 12:00 on 30 January 2019, substantially in the form set
out in Section 7 hereto. In the interest of fairness and transparency Transnet’s response to such a query
will then be made available to the other Respondents who have collected RFP documents. For this
purpose, Transnet will communicate with Respondents using the contact details provided to the Secretariat
on issue of the bid documentation to the Respondent. Kindly ensure that you provide the Secretariat with
the correct contact details, as Transnet will not accept responsibility for being unable to contact a bidder
who provided incorrect contact details.
6.2 After the closing date of the RFP, a Respondent may only communicate with the Secretariat of the
Divisional Acquisition Council, at telephone number 031 308 8343, email
For this purpose, the attached Appendix iii SBD 1 must be completed and submitted as an
essential returnable document by the closing date and time of the bid.
15 PROTECTION OF PERSONAL DATA
In responding to this bid, Transnet acknowledges that it may obtain and have access to personal data of the
Respondents. Transnet agrees that it shall only process the information disclosed by Respondents in their
response to this bid for the purpose of evaluating and subsequent award of business and in accordance with
any applicable law. Furthermore, Transnet will not otherwise modify, amend or alter any personal data
submitted by Respondents or disclose or permit the disclosure of any personal data to any Third Party without
the prior written consent from the Respondents. Similarly, Transnet requires Respondents to process any
personal information disclosed by Transnet in the bidding process in the same manner. The detailed mutual
duties of Transnet and the Respondents to protect personal information is contained in paragraph 37 of the
General Bid Conditions.
Transnet urges its clients, suppliers and the general public to report any fraud or corruption to
TIP-OFFS ANONYMOUS: 0800 003 056
Page 13 of 65
THE PROVISION OF CARGO HANDLING SERVICES FOR TRANSNET SOC LTD (REG. NO 1990/000900/30) OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER REFERRED TO AS “TPT”), AT THE PORT OF RICHARDS BAY, INCLUDING THE PROVISION OF MATERIAL HANDLING EQUIPMENT (FRONT END LOADERS, AND DUMP TRUCKS/ADT’s) ON AN AS AND WHEN REQUIRED BASIS, FOR A PERIOD OF TWO (2) YEARS.
Section 2: BACKGROUND, OVERVIEW AND SCOPE OF REQUIREMENTS
1 BACKGROUND
The natural deep-water, Port of Richards Bay, is in South Africa’s premier bulk-minerals handling facility
opened to shipping 365 days a year. The Richards Bay Terminal predominantly handles dry bulk commodities
with parcel sizes less than 65mm. These commodities are transported on conveyor systems to or from storage
facilities, rail or road transport and/or alternatively Harbour Bound Industries.
The 6 and 7 series of the terminal pre-dominantly handles neo-bulk commodities of larger particle sizes as
well as the overflow of cargo from our premium berths (as highlighted below) utilising a skip-operation for
vessel loading.
In addition to the above, beneficiated products such as steel, paper and pulp, aluminium and project cargoes
are handled. The terminal has become the gateway between local industry production along the Richards Bay
Corridor and international markets.
The successful bidder will share in the mission and business objectives of TPT. These mutual goals will be
met by meeting contract requirements and new challenges in an environment of teamwork, joint participation,
flexibility, innovation and open communication.
The appointed service providers should be willing to collaborate with each other in particular
regarding the use of the relevant idle or excess equipment in the Terminal should a need arise
subject to terms and conditions
The following is a photographical view of the Port of Richards Bay with its respective quaysides, sheds, open
storage areas and berths:
Page 14 of 65
2 EXECUTIVE OVERVIEW
TPT wishes to outsource a portion of cargo handling services for the Port of Richards Bay Terminals. Further,
the operation for which this equipment and service is required, may be separated into the following terminals:
1.Richards Bay Multi-Purpose Terminal (Rbay MPT)
a. Neobulk
b.7-Series
c. 6-Series
2.Richards Bay Dry Bulk Terminal (Rbay DBT)
a. Port Rail Terminal (PRT)
b.Export
c. Import
Competency in the supply of this type of equipment and service must be demonstrated and the successful
bidder shall provide TPT with a reference list of similar work.
TPT (or it’s appointed 3rd party inspector) reserves the right to carry out inspections on all equipment.
No accommodation of any description (offices, workshops/operational facilities) will be provided by TPT for
the successful bidder’s use.
TPT reserves the right to award any section / component of the scope individually to different Bidders, or all
components to the same bidder or in portions if deems fit; based on the cargo handling process described in
3.1 below and corresponding pricing schedule, namely: -
• Richards bay Multi-Purpose Terminal - (Rbay MPT)
Page 15 of 65
• Richards bay Dry Bulk Terminal (including Port Rail Terminal - (Rbay DBT and Rbay PRT)
Safety and access requirements such as medicals, badging, transport, PPE, including SHE files shall be for the
Successful bidder’s account.
The tender includes the cargo handling services and the provision of the materials highlighted in this document
with handling equipment (with Operators) at Richards Bay Multipurpose terminal, Dry Bulk Terminal for both
inbound and outbound cargoes.
The contract duration will be 24 months (2 years) from the date of award, on an ‘as and when’ required basis,
including a lead-time of 30 days for site establishment.
TPT reserves the right to adhere to customer specification which does not guarantee all volumes to be handled
using the same operational model. TPT also reserves the right to allow its partners and/or customer(s) to
utilise their own equipment where and if required, based on TPT’s agreed commitments.
Volumes estimates are not absolute; service provider will not handle all volumes that pass through terminal
gates/boundaries. However, the following is a record of the historic volumes handled at these Port Terminals
as well as the projected future volumes.
TERMINAL PROJECTED VOLUMES IN TONNES
Fin Year 2019/20
Fin Year 2020/21
Fin Year 2021/22
Fin Year 2022/23
Fin Year 2023/24
Fin Year 2024/25
Fin Year 2025/26
Rbay MPT 6 372 476
6 556 432
6 753 979
7 256 231
7 512 872
7 760 419
7 981 662
Rbay DBT 14 384 215
14 826 368
15 499 850
16 049 741
16 471 125
16 999 125
17 785 125
COMMODITY DBT PROJECTED VOLUMES IN TONNES PER COMMODITY
TPT RECOMMENDED MINIMUM EQUIPMENT REQUIREMENT PER OPERATION,
SECTIONS TO BE COVERED ARE AS ER BELOW
MPT Operations
Section Equipment Size
Neo-Bulk Front End Loaders 16 Ton Bucket
7- Series Front End Loaders 16 Ton Bucket
6- Series Front End Loaders 16 Ton Bucket
Section Equipment Size
Neo-Bulk Dump Trucks 18 cube
7- Series Dump Trucks 18 cube
6- Series Dump Trucks 18 cube
DBT Operations
701 OPERATION HAPPENS AS AND WHEN REQUIRED
Section Equipment Size
Import (701 SLAB) Dumper Trucks 18 cube
Front End Loaders 16 Ton Bucket
3 SCOPE OF REQUIREMENTS
3.1 CARGO HANDLING PROCESS:
Transnet is the gateway of the South African economy, which handles the cargo as follows
across the two (2) terminals referred to in Section 1 above:
3.1.1 Receive cargo by rail or tipplers, move it to stacking area, back-stack it to the
required height and shipped.
3.1.2 Receive cargo from the vessel, stacked if required, load onto Rail or Road out of
the terminal.
672 971 1 412 247 1 240 814
Pig Iron 433 471 469 976 488 498 296 223
284 280
345 691
Low Ash Coal 16 233
27 870
64 657
5 434
32 124
Manganese Ore 180 308 24 300 0
0
0
0
Section Equipment Size
Export Front End Loaders 16 Ton Bucket
Import Front End Loaders 16 Ton Bucket
PRT
Front End Loaders 16 Ton Bucket
Dump Trucks (ADT) 18 cube
Excavator 9 Ton Bucket
Page 18 of 65
3.1.3 Receive cargo by road, move it to stacking area, back-stack it to required height
and shipped.
3.1.4 Receive cargo via tipplers or road trucks and leave the terminal via road transport.
3.1.5 Ad-hoc service (i.e. internal movement of cargo) specially authorised by TPT
Planning Department.
3.2 OPERATIONAL REQUIREMENTS FOR VESSEL WORKING:
It is expected for the successful bidder to work without any interruptions as a result of
shift change overs, fuelling, meal breaks etc. in order to ensure operational
efficiencies and committed handling rates are met and/or exceeded.
Please note, TPT reserves the right to change the commodity norm/targets as and when
required based on commercial commitments.
Shift Patterns:
TPT consists of automated conveyor belt systems as well as break bulk handling methods.
The successful bidder’s shift pattern will be aligned with that of the Terminal(s). The current
shift patterns are as follows: -
Week days (i.e. Monday – Friday)
06h00 – 14h00
14h00 – 22h00
22h00 – 06h00
Weekends and Public Holidays
06h00 – 18h00
18h00 – 06h00
NB: Although these are the current shift patterns, TPT reserves the right to change
the shift patterns without consulting the successful bidder and would expect the
successful bidder to align their shift patterns with that of TPT’s.
Richards Bay Terminal:
Multi-Purpose Terminals must be equipped to achieve a Nett loading rate of 280 Tons per
Hour (“tph”), with an average Gross loading rate of 220 tph.
The commodities that will be handled include; but not limited to:
Ferro Chrome, required loading rate of 220 TPH
Ferro Manganese, required loading rate of 220 TPH Pig Iron, required loading rate of 180 TPH
Chrome Ore (Fines), required loading rate of 180 TPH Chrome Ore (Lumpy), required loading rate of 180 TPH
Rock Phosphate, required loading rate of 200 TPH
Coal, required loading rate of 200 TPH Sulphate slag, required loading rate of 150 TPH
Other The product densities range from 0.7 ton/m3 to 3.7 ton/m3.
Page 19 of 65
NB:- A GRAPHICAL ILLUSTRATION OF THE PROCESSES OF HANDLING THE RESPECTIVE ABOVE MENTIONED
CARGO IS RECORDED UNDER PARAGRAPH 5 OF THIS SCOPE-OF-WORK DOCUMENT
Richards Bay Dry Bulk Terminal (including port rail operations):
Dry Bulk Terminal must achieve a nett loading rate of 2100 TPH, with an average Gross
loading rate of 2000 TPH.
The commodities that will be handled include; but not limited to:
Chrome ore, required loading rate of 2000 TPH
Magnetite ore, required loading rate of 2000 TPH
Coal, required loading rate of 1000 TPH
Coking Coal, required loading rate of 750 TPH
Metcoke, required loading rate of 350 TPH
Limestone, required loading rate of 350 TPH
The product densities of the cargo handled at Rbay DBT range from 0.9 ton/m3 to 3.2
ton/m3.
3.3 OPERATIONAL REQUIREMENTS FOR TIPPLERS AND MPT RAIL/ROAD:
3.3.1 Tippler Requirements:
The Tippler operation requires the following: -
3.3.1.1 Drop zone must be constantly cleared, ensuring that the tippler does not
idle/stop.
3.3.1.2 Cargo must be back stacked to ensure maximum utilisation of space at the
stockpile area, and operational efficiency.
3.3.1.3 Control measures in place to ensure NO damage to TPT equipment and
assets.
3.3.1.4 Ensure sufficient equipment for back-stacking of cargo etc.
3.3.1.5 Each tippler must achieve 20 wagons per hour (approximately 1300 tons
per hour).
3.3.1.6 Equipment to load tarps/canopies onto rail wagons.
3.3.2 Multi-Purpose Terminals Requirements: Richards Bay
In all Multi-Purpose Terminals rail truck offloading target is a minimum of 4 rail wagons
worked per hour at all rail sidings. Furthermore, every road truck is expected to complete
the process of offloading cargo within 35 minutes (from weighbridge in, to weighbridge
out).
The rail truck turnaround off-loading target on every 8 hour shift is as follows:
3.3.2.1 75 wagons for Neobulk
3.3.2.2 40 wagons for Coal, Rock Phosphate
3.3.2.3 Average of 40 wagons per block load.
Note: The operation is 24 hours per day 7 days per week, dependent on the availability of the
cargo.
Page 20 of 65
The three stages of the off-loading process - namely placing of loads, offloading/loading of loads, and pulling of loads - must operate in synchronisation such that each stage is
aligned to the other.
The trains arrive at the terminal in the following block loads:
Ferro Chrome block load is 75 wagons,
Ferro Manganese block load is 40 wagons, Pig Iron block load is 20 wagons,
Chrome Ore (Lumpy & Fines) block load is 40 wagons.
Rock Phosphate block load is 75 wagons,
Coal block load is 50 wagons,
Magnetite block load is 75 wagons, and
Other commodities may be added to the above list, dependant on industry
requirements.
4 SPECIFIC DELIVERABLES FOR THE TENDER PROCESS
The Bidder to submit a Minimum of Two (2) signed Trade Reference Letters from existing /
previous clients, on the clients' letterhead and must not be dated older than 5 years.
o In the event of Joint Venture (JV), partners trade reference will not be acceptable.
It should be an independent company reference.
o Trade reference letters must confirm that the set performance standards were met
and included in similar works processes for Break bulk and Bulk products utilising
the same equipment.
The Bidder to provide proof of mobile diesel tanker whether owned/leased (in the event of
ownership, logbook or intended lease agreement in the event of lease), as well as proof of road
worthy certificate T2 (Annexure B).
The bidder must provide minimum 16 tons’ capacity FEL whether owned/leased as per Technical
Returnable T2 (Annexure B).
The bidder must submit a full SHE safety file as per Technical Returnable T2 (Annexure B).
The bidder must prove their ability to supply all equipment and related Services as per tendered
Port with proof of insurance, as per Technical Returnable T3 (Annexure B).
Business Continuity plan:
The Successful bidder will provide with a comprehensive Business Continuity Plan (BCP)
including but not limited to the following as per Technical Returnable T4 (Annexure B)
The business contingency plan must include the following:
Training (Bidder to provide valid FEL certificate/s from the accredited service provider, plus South African code 14 drivers’ license). Operators to be in a possession of a PDP
· Contingency labour work force per shift ( Comprehensive)
· Training ( Comprehensive)
· Transportation( Comprehensive)
· Security planning (Comprehensive)
. Equipment availability (Comprehensive)
Page 21 of 65
. Spare part availability ( Comprehensive)
The strike management plan is very important. It defines the roles and responsibilities of
the strike management team. Supplier to stipulate they role during an industrial action. It should cover the following minimum information in the following categories: Pre-strike planning, During the strike, Post-strike review.
· List the strike management team and their contact details;
· How and when to declare a strike;
· Business continuity management process;
· Command centre operation;
· Chain of command for strike operations;
· Communication protocols e.g. notifying customers and regular strike reports;
· Identification of striking employees from non-striking employees e.g. go slows;
· Disciplinary process for illegally striking employees etc.
· Strike diary
· Emergency planning
• The bidder must confirm that; should they be awarded business; they will have an established
office within one (1) month of signing the letter of award. The office in relation to the Transnet
site/s (0 - 50km radius) as per Technical Returnable T5 (Annexure B).
The bidder must confirm that should they be awarded the business, they will within one (1)
month of signing the letter of award have a two-way communication system and a minimum of
20 handheld radios as per Technical Returnable T6 (Annexure B).
Equipment Break down Plan:
The successful bidder will provide response time with Technical support onsite, this should be
incorporated in the breakdown plan provided by the successful bidder, which details technical
team, mechanical vehicles and support and turnaround time to onsite support. TPT’s preference
is a response time of one (1) hour from calling logging for Technical onsite support.
The bidder must prove their ability to provide On-site Technical support highlighted in the
“Equipment Breakdown Plan” referred to below as well as per Technical Returnable T7 (Annexure
B).
The bidder must provide proof of in-house training including, but not limited to the following as
per Technical Returnable T8 (Annexure B).
o Training on the knowledge of commodity contamination (Proof of attendance, example
Standard Operations procedure)
o Training of supervisors (e.g. Supervisory Development Programme, attendance register)
o Management training (e.g. Certificate of attendance)
o Understanding of commodity norms. (e.g. proof of achievements)
Page 22 of 65
o Communication skills and understanding of basic instructions. (proof of attendance)
o Understanding the basic principles of loading and over loading (amongst others)
o Standard operating processes (SOP) and copies of attendance registers for the previous
training sessions, certificates issued/obtained by employees will serve as evidence of the
above trainings.
The bidder must provide a Standard Operating Procedure which must include (amongst
others) the following, as per Technical Returnable T9 (Annexure B): -
o Internal bulk & breakbulk Handling Processes
o Provide Equipment cleaning plan to avoid contamination
o Demonstrate flow chart of avoiding or mixing cargo
The bidder to provide written confirmation that they will be in a position to provide ISO
9001 certificate ("Quality Management System”) within a year of resuming operations,
Technical Returnable T9 (Annexure B).
Total assets register:
This will include a maintenance plan with all necessary Technical support requirements.
4.1 EXCAVATION STAGE
This involves the process of off-loading the rail trucks with the mobile back actors, which
are the primary equipment for this function. The mobile back actor “scoops” the cargo
from the rail truck and loads it into the Dump Trucks. Each mobile back actor must have
sufficient scooping capacity in order to meet operational requirements as outlined above.
This process in insourced by TPT.
4.2 DUMP TRUCK STAGE
These trucks are positioned alongside the rail-trucks, to transport the commodities from
the rail-trucks to the stockpiles, and off-load them at the appropriate bays. The ideal
capacity of dump trucks is approximately 30 ton for Richards Bay.
4.3 BACK-STACKING STAGE
The Front end loaders (FEL) pushes the bulk cargo up to eight (8) meters high (tipped
by the dump trucks) towards the back of the stack (please note: leave one meter away
from the blocks) in order to optimise the usage of the stacking area. NB: The 8m height
is measured from the ground level to the apex of the stack.
4.4 UPLIFTING FOR THE VESSELS
The Front end loaders required for this leg are mainly used for the uplifting bulk cargo for the vessels. The vessels are working according to the pre-determined norms and
Page 23 of 65
targets that need to be achieved at all times, based on the required norms as mentioned above.
4.5 ADHOC SERVICES
TPT will notify the Successful bidder of any ad-hoc activities that will be required e.g.
Housekeeping, pulling conveyors and other related activities. Authorisation should be
obtained prior to this service being executed.
4.6 OPERATING EQUIPMENT METHODS (Equip availability, Equip Operation, Reporting and
Reconciliation)
TPT reserves the right to invent or establish better ways of improving operational
efficiencies with or without informing the Successful bidder. Should this occur, the
Successful bidder shall be engaged to review. This could include, but not limited to, a
change in the Terminal operating models.
4.6.1 EQUIPMENT AVAILABILITY
4.6.1.1 All equipment and operators must be readily available to commence
work as prescribed by Transnet’s Operations Manager.
4.6.1.2 There should be no idle time experienced by all equipment during the
off-loading process.
4.6.1.3 If the non-availability of any equipment is due to mechanical
breakdown, it is the Successful bidder’s responsibility to ensure that
this does not lead to production delays or deviations from the norms
outlined in point 2.2 and 2.3 above.
4.6.1.4 If the time to carry out repairs is or 1 hour for all equipment, the
Successful bidder shall ensure that replacement equipment is provided.
4.6.1.5 Equipment refuelling must be done outside of normal working hours
i.e. supplied by the Successful bidder’s refuelling mobile bowsers.
Please note the following:
All Drivers/Operators must possess valid Driver’s License in terms of the
National Road Traffic Act No 93 of 1996 as well as any other relevant Operators
licence or permit as required by South African Law and all other relevant
legislation.
The Successful bidder must have a broad form of “current” insurance liability
cover which includes Professional Indemnity Insurance/Professional Liability
Insurance/General Insurance/Public Liability Insurance with a minimum
indemnity limit of R10 000 000.00 (ten million rand) per incident.
Page 24 of 65
TPT may conduct random inspections to verify the equipment condition at all
times before offloading.
4.6.2 EQUIPMENT OPERATION
4.6.2.1 The Successful bidder shall provide the equipment on a 24 hours a day,
seven days a week basis. TPT, will wherever possible, endeavour to give
early notification of equipment requirements. TPT reserves the right to
terminate the activities of the equipment; should TPT deem it necessary,
dependent on “Operational” requirements.
4.6.2.2 The Successful bidder’s personnel must have the requisite knowledge, skill
and experience required to perform the required work.
4.6.3 REPORTING
4.6.3.1 It is a compulsory requirement that the Successful bidders Operators’
Tonnage Reconciliation Sheets must be signed by both the
Successful bidder’s representative as well as a TPT representative in
accordance with the Project Manager’s requirements. The original must
be handed to the Project Manager for safekeeping.
4.6.3.2 The reconciliation on the agreed handled tonnages must be signed off
by the Successful bidder’s Manager, the TPT Operations Manager and
the TPT Senior Operations Manager on completion of the operation at
the point of exit from the terminal on weekly basis.
4.6.3.3 The Successful bidder shall immediately advise the Operations Manager
of all breakdowns and the re-placement plan. The Successful bidder
shall submit the reason for the non-availability together with the remedial
action to be taken. All actions taken to replace or repair will be within 1
and 2 hours as outlined in 3.6.1.4 above.
4.6.4 RECONCILIATION METHODOLOGY:
4.6.4.1 Transnet Port Terminals will reconcile volumes (tonnage) and base the
payment solely on cargo handled by the successful bidder, as per cargo
handling processes referenced in point 2.1 above, after the point of
exiting the terminal.
4.6.4.2 The successful bidder will produce proof (i.e. document) signed by TPT
Operational representative, that he or she has handled the cargo or
volumes in question. The document will clearly indicate tonnage handled,
date and time. Successful bidders’ representative’s name and TPT
representative name and company number.
4.6.4.3 Ad-hoc services (e.g. internal cargo movement) should be based on TPT
representative authorised by TPT Planning Manager. The service
Page 25 of 65
provider will be notified by TPT Planning department eight hours in
advance.
4.6.4.4 All invoices will be reconciled and signed off by Terminal Managers.
4.7 SPECIFICATIONS OF EQUIPMENT REQUIRED IN OPERATIONAL AREAS.
In addition to the equipment specifications of the Mobile back actors, Specially-adapted
Excavators, Front-end Loaders and Dump Trucks, the Successful bidder’s equipment
must comply with the following requirements:
4.7.1 All fleet must be in good working condition (as per relevant Road Traffic
Ordinances, amongst other applicable Laws) with safety workload certificates
and tested as per relevant legislation.
4.7.2 All fleet must be fitted with orange revolving lights and reverse sirens.
4.8 FRONT END LOADERS (FEL’s)
The FEL’s must have a minimum capacity of 16 Tons.
4.9 DUMP TRUCKS
The Dump trucks must have a minimum capacity of 18 m3 per payload. The recommended
bucket/bin size equivalent of 28 Ton is preferred. Bidders are to specify the type of Dump
Trucks being offered.
5 ENVIRONMENT AND SITE CONDITIONS IN THE PORT OF RICHARDS BAY TERMINALS
The equipment and installation shall be suitable for 24/7 continuous operation under the following conditions:
Altitude Sea level
Ambient temperature 5 – 45oC
Relative humidity Frequently 95%-100%
Corrosive atmosphere Severe
Air pollution Heavy dust laden
Rainy/wet conditions
Refer to Annexure A for Scope of Work Pictures.
As prescribed in terms of the PPPFA and its Regulations, Respondents are to note the following:
Functionality is included as a threshold with a prescribed percentage threshold of 80%.
Page 26 of 65
Respondents must complete and submit Annexure B – Technical Returnable Schedule which includes
a technical returnable documents.
A Respondent’s compliance with the minimum technical threshold will be measured by their responses to
Annexure B.
4 GREEN ECONOMY / CARBON FOOTPRINT
Transnet wishes to have an understanding of your company’s position with regard to environmental
commitments, including key environmental characteristics such as waste disposal, recycling and energy
conservation. Please submit details of your entity’s policies in this regard.
5 GENERAL SERVICE PROVIDER OBLIGATIONS
5.1 The Service Provider(s) shall be fully responsible to Transnet for the acts and omissions of persons directly
or indirectly employed by them.
5.2 The Service Provider(s) must comply with the requirements stated in this RFP.
Page 27 of 65
6 EVALUATION METHODOLOGY
Transnet will utilise the following methodology and criteria in selecting a preferred Service Provider, if so
required:
NB: Evaluation of the various stages will normally take place in a sequential manner. However, in order to expedite the process, Transnet reserves the right to conduct the different stages of the evaluation process in parallel. In such instances the evaluation of bidders at any given stage must not be interpreted to mean that bidders have necessarily passed any previous stage(s).
6.1 STAGE ONE: Test for Administrative Responsiveness
The test for administrative responsiveness will include the following:
Administrative responsiveness check RFP Reference
Whether the Bid has been lodged on time Section 1 paragraph 3
Whether all Returnable Documents and/or schedules [where applicable] were completed and returned by the closing date and time
Section 4
Verify the validity of all returnable documents Section 4
The test for administrative responsiveness [Stage One] must be passed for a
Respondent’s Proposal to progress to Stage Two for further pre-qualification
Price (90)
B-BBEE (10)
Scorecard
Stage 1 Stage 2 Stage 4
80% Minimum
Threshold
Administrative
Responsiveness
Substantive Responsiveness
RETURNABLE DOCUMENTS
& SCHEDULES
PRE-
QUALIFICATION MINIMUM BBBEE
LEVEL 2 TECHNICAL
Stage 3
Weighted Scoring / 100
WEIGHTED
SCORE
Stage 5
Post tender negotiation (if
applicable) requesting best & final offer.
Final evaluation
in terms of 90/10.
POST TENDER NEGOTIATION &
FINAL WEIGHTED
SCORE
Stage 6
Negotiation of final terms & conditions of contract including SD, B-BBEE Improvement Plan with successful bidder
SECTION 9 : Certificate of attendance of compulsory RFP Briefing
Valid and original (or a certified copy) of proof of Respondent’s compliance to B-BBEE requirements
stipulated in Section 8 of this RFP
b) Essential Returnable Documents
In addition to the requirements of section (a) above, Respondents are further required to submit with their Proposals the following essential Returnable Documents as detailed below.
Essential Returnable Documents required for evaluation purposes:
Failure to provide all essential Returnable Documents used for purposes of scoring a bid, by the closing date and time of this bid will not result in a Respondent’s disqualification. However, Bidders will receive an automatic score of zero for the applicable evaluation criterion. Bidders are therefore urged to ensure that all these documents are returned with their Proposals.
Please confirm submission of these essential Returnable Documents by so indicating [Yes or No] in the table
below:
ESSENTIAL RETURNABLE DOCUMENTS USED FOR SCORING SUBMITTED
[Yes or No]
- Annexure B Technical Returnable Schedule - Equipment (T3) - Business Contingency Plan (T4) - On-site technical support (T7) - Training (T8) - Contamination Mitigation (T9) - ISO 9001 Accreditation (T10)
Other Essential Returnable Documents:
Failure to provide other essential Returnable Documents may result in a Respondent’s disqualification. Bidders are therefore urged to ensure that all these documents are returned with their Proposals.
Please confirm submission of these essential Returnable Documents by indicating Yes or No in the table
below:
OTHER ESSENTIAL RETURNABLE DOCUMENTS & SCHEDULES
SUBMITTED
[Yes or No]
SECTION 4 : Proposal Form and List of Returnable documents
- In the case of Joint Ventures, a copy of the Joint Venture Agreement or written confirmation of the intention to enter into a Joint Venture Agreement
- Latest Financial Statements signed by your Accounting Officer or latest Audited Financial Statements plus 2 previous years ( i.e financial statements for the past 3 years)
- Tax Clearance Certificate or electronic access PIN obtained from SARS’s new Tax Compliance Status (TCS) system [Consortia / Joint Ventures must submit a separate Tax Clearance Certificate/PIN for each party]
- A copy of the directors ID document.
SECTION 5 : Certificate Of Acquaintance with RFP, Terms & Conditions & Applicable Documents
SECTION 6 : RFP Declaration and Breach of Law Form
SECTION 7 : RFP Clarification Request Form
SECTION 8 : B-BBEE Preference Claim Form
SECTION 10 : Supplier Development Initiatives
SECTION 11 : Declaration of Supplier Development Commitments
9.7 Total number of years the company/firm has been in business:……………………………
9.8 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify
that the points claimed, based on the B-BBE status level of contribution indicated in paragraph 7 of
the foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we
acknowledge that:
i) The information furnished is true and correct;
ii) The preference points claimed are in accordance with the General Conditions as indicated in
paragraph 1 of this form;
iii) In the event of a contract being awarded as a result of points claimed as shown in paragraph 7,
the contractor may be required to furnish documentary proof to the satisfaction of the purchaser
that the claims are correct;
iv) If a bidder submitted false information regarding its B-BBEE status level of contributor, local
production and content, or any other matter required in terms of the Preferential Procurement
Regulations, 2017 which will affect or has affected the evaluation of a bid, or where a bidder has
failed to declare any subcontracting arrangements or any of the conditions of contract have not
been fulfilled, the purchaser may, in addition to any other remedy it may have
(a) disqualify the person from the bidding process;
(b) recover costs, losses or damages it has incurred or suffered as a result of that person’s conduct;
(c) cancel the contract and claim any damages which it has suffered as a result of
having to make less favourable arrangements due to such cancellation;
(d) if the successful bidder subcontracted a portion of the bid to another person without disclosing it, Transnet reserves the right to penalise the bidder up to 10 percent of the value of the contract;
(e) recommend that the bidder or contractor, its shareholders and directors, or only
the shareholders and directors who acted on a fraudulent basis, be restricted by the National Treasury from obtaining business from any organ of state for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been applied; and
DATE _______________________ DATE _________________________
EMAIL ________________________
Page 55 of 65
RFP FOR THE PROVISION OF CARGO HANDLING SERVICES FOR TRANSNET SOC LTD (REG. NO
1990/000900/30) OPERATING AS TRANSNET PORT TERMINALS, (HEREINAFTER REFERRED
TO AS “TPT”), AT THE PORT OF RICHARDS BAY, INCLUDING THE PROVISION OF MATERIAL
HANDLING EQUIPMENT (FRONT END LOADERS, AND DUMP TRUCKS/ADT’s) ON AN AS AND
WHEN REQUIRED BASIS, FOR A PERIOD OF TWO (2) YEARS.
Section 10: SUPPLIER DEVELOPMENT INITIATIVES
1.1 Aim and Objectives
Historically in South Africa there has been a lack of investment in infrastructure, skills and capability
development and an inequality in the income distribution and wealth of a significant portion of the
population. There have been a number of Government initiatives developed to address these challenges.
In particular, the New Growth Path [NGP] and New Development Plan [NDP] aligns and builds on previous
policies to ensure the achievement of Government’s development objectives for South Africa. Transnet fully
endorses and supports Government’s New Growth Path policy.
The key focuses of the NGP include:
increasing employment intensity of the economy
addressing competitiveness
balancing spatial development of rural areas and poorer provinces
reducing the carbon intensity of the economy
creating opportunities in improving regional and global cooperation
enabling transformation that benefits a wider range of social actors in society e.g. workers, rural
communities, youth and women
Transnet, as a State Owned Company [SOC], plays an important role to ensure these objectives are
achieved. Therefore, the purchasing of goods and services needs to be aligned to Government’s objectives
for developing and transforming the local supply base. Transnet’s mission is to transform its supplier base
by engaging in targeted supplier development initiatives to support localisation and industrialisation.
Transnet aspires to also provide meaningful opportunities for Black2 South Africans with a particular
emphasis on:
Youth [16 to 35 year olds]
Black-ownership
Black women-ownership
People with disabilities
Small black-owned businesses
Local Economic development (the local to site development principle)
Job creation and job preservation of historically disadvantaged groups or individuals
Transnet requests that the Respondents discharge their supplier development initiatives in a manner that would
preferably benefit the above mentioned groups
1.2 Supplier Development [SD]
To facilitate the implementation of Supplier Development initiatives, Transnet has adapted an existing
framework from the Department of Public Enterprises [DPE]. This framework allows for a basic set of
principles to be applied to appropriately targeted SD initiatives. Supplier development initiatives aim to
2 “Black” means South African Blacks, Coloureds and Indians, as defined in the B-BBEE Act, 53 of 2003
Page 56 of 65
build local suppliers who are competitive through building capability and capacity. Hence the framework
has been termed the Increased Competitiveness, Capability and Capacity Supplier Development
Classification Matrix [IC³ Matrix]. Currently there are four quadrants of SD initiatives which Transnet
considers according to the IC³ Matrix. This RFP has been identified as strategic, involving high commercial
leverage and high value.
Accordingly, Respondents are required to provide a commitment of the Supplier Development initiative
they will undertake during the contract period in the Supplier Development Value Summary. In
addition, Transnet requires that all Respondents submit a Supplier Development Plan demonstrating
how they will discharge their commitments made in the Supplier Development Value Summary. The
contract which will be concluded with the successful bidder will incorporate the SD undertakings made in
the abovementioned documents as a term of the contract.
a) For a detailed understanding of the IC³ Matrix, the respective SD initiatives and their objectives, please
refer to the “Supplier Development Guidelines” appended hereto as Appendix ii This document must
be used as a guideline to complete the SD Plan.
b) The following Supplier Development [SD] focus areas have been identified, namely:
Category Description
New Skills development Skills transfer & skills education which will occur as a result of the award of contract
Job Creation/Preservation Number of jobs created or preserved resulting from the award of contract
Enterprise and Supplier
Development
Encouragement for growth and the expansion of emerging local firms, through procurement and support mechanisms (excluding subcontracting)
Local Economic Development (Local to site)
Incorporation of the use of rural labour and regional businesses which will contribute to NGP objectives (excluding subcontracting)
Green economy / carbon footprint: The potential reduction of the economy’s carbon intensity [i.e. creation of a greener economy] should be regarded as a key priority within all the above SD Categories and for all proposed SD initiatives
c) The Supplier Development Plan is to be submitted as a separate document. Supplier Development
Plan is a detailed narrative document explaining the Respondent’s Bid value as summarised in the
Supplier Development Value Summary. The SD Plan should outline the type of activities you intend
to embark upon should you be awarded the contract. This SD Plan should also provide an overview
of what you intend to achieve, when, and the mechanisms whereby you will achieve those objectives.
The SD Plan will represent a binding commitment on the part of the successful Respondent.
Annexure D must be completed, indicating by cross-reference the detailed areas which have been
addressed in your SD Plan for each of the evaluation criteria listed in paragraph 1.2 (b) above,
together with the Value Indicators therefor.
Notes for completion of the SD Plan:
(i) Respondents are required to address each of the aspects under the detailed SD Description
as a minimum for submission. This is not an exhaustive list however, and Respondents must
not be limited to these choices when compiling each section.
(ii) Please provide detailed calculations to illustrate how your estimated Rand values have been
derived.
Page 57 of 65
(iii) Respondents are required to provide an electronic copy [CD] of the completed Annexure D
as part of the SD Plan submission.
1.3 Additional contractual requirements
Should a contract be awarded through this RFP process, the successful Respondent(s) [hereinafter referred
to as the Service Provider] will be contractually committed, inter alia, to the following conditions:
a) The Service Provider will be required to submit a Supplier Development Implementation Plan
within 45 [forty-five] calendar days from the signature date of a Letter of Intent [LOI]. This
Implementation Plan represents additional detail in relation to the SD Plan providing an explicit
breakdown of the nature, extent, timelines and monetary value of the SD commitments which the
Service Provider proposes to undertake and deliver during the term of the contract. Specific
milestones, timelines and targets will be recorded to ensure that the Implementation Plan is in line
with Transnet’s SD objectives and that implementation thereof is completed within the term of the
contract.
b) The Implementation Plan may require certain additions or updates to the initial SD Plan in order to
ensure that Transnet is satisfied that development objectives will be met.
c) The Service Provider will need to ensure that the relevant mechanisms and procedures are in place
to allow for access to information to measure and verify the Service Provider’s compliance with its
stated SD commitments.
d) The Service Provider will be required to provide:
(i) monthly status updates to Transnet for each SD initiative. [Detailed requirements will be
provided by Transnet];
(ii) quarterly status reports for Transnet and the DPE. [Detailed reporting requirements will be
provided by Transnet]; and
(iii) a final Supplier Development report, to be submitted to Transnet prior to the expiry date of the
contract, detailing delivery, implementation and completion of all SD components plus auditable
confirmation of the Rand value contribution associated with each such SD commitment.
e) All information provided by the Service Provider in order to measure its progress against its stated
targets will be auditable.
f) The Service Provider will be required to submit this Implementation Plan to Transnet in writing, within
45 [forty-five] calendar days after signature of a Letter of Intent [LOI], where after both parties must
reach an agreement [signed by both parties] within 20 [twenty] calendar days. Transnet will reserve
the right to reduce or increase the number of days in which the Service Provider must submit its
Implementation Plan if it is deemed reasonable, based on the degree of complexity of the SD initiative.
g) The contract will be conditional on agreement being reached by the parties on the Implementation
Plan submitted by the Service Provider. Therefore failure to submit or thereafter to agree to the
Implementation Plan within the stipulated timelines will result in the non-award of such a contract or
termination thereof. Adherence to the Implementation Plan will be strictly monitored by the Regional
SD structures as well as Group ESD M & E. (Group Enterprise and Supplier Development (Monitoring
and Evaluation)
h) Failure to adhere to the milestones and targets defined in an Implementation Plan may result in the
invocation of financial penalties, to be determined at Transnet’s discretion, as well as providing
Transnet cause to terminate the contract in certain cases where material milestones are not being
achieved.
Page 58 of 65
1.4 Supplier Development Returnable Documents
Attached herewith is the following documentation:
Declaration of Supplier Development Commitments – Section 11 [essential]
SD Plan – Annexure D [essential]
SD Value Summary – Annexure F [essential]
SD Bid Document – Annexure G [essential]
Respondents are to note whether the abovementioned documents are listed as mandatory or
essential returnable documents in Section 4 to this RFP as failure to submit, or to submit an
incomplete mandatory returnable document will result in disqualification of your Proposal.
Failure to submit an essential returnable document may result in disqualification of your