1. 26 March 2015 Clarification meeting: Scaffolding and Insulation material

2. Agenda DescriptionResponsibility Opening, welcome and evacuationCommercial Declaration of interest Commercial Purpose of the meeting Commercial Presentation by CommercialCommercial Representative Presentation by SD & LSD & L Representative Presentation by Safety Safety Representative Presentation by QualityQuality Representative Presentation by TechnicalTechnical Representative GeneralAll ClosureCommercial 2

3. 3 Evaluation Criteria STEP 1: Stage 1 - Tender submissions will be checked for completeness of commercial returnable which includes submission of all mandatory documents required by commercial, finance, technical, quality and SHE. Stage 2 Evaluation of functionality. Suppliers that do not provide all of the documents requested below will be automatically disqualified from the evaluation process.

4. 1. Commercial returnables Commercial Tender ReturnablesMandatory for Evaluation Mandatory for Contract Award COMMERCIAL Authority to submit a tender.XX Declaration of fair bidding practices.XX Proposed changes to tender documents (alternative tenders). X Declarations of Shareholding or Beneficiaries.XX Confidentiality & Non-Disclosure Agreement.XX If two or more tenderers form a joint venture, consortium or other unincorporated grouping of two or more persons (“joint venture”), a copy of the joint venture agreement entered into between the partners. XX Contract Data Part C 1.2 b provided by Supplier.X Valid certified copy of SARS Tax Clearance Certificate. X Supplier declaration of interestX 4

5. Financial / Price Mandatory for Evaluation Mandatory for Contract Award Activity Schedule /Pricing Schedule. XX Audited Financial Statements of the tenderer for the previous two (2) financial years. Note: It is important to submit the Financial Statements of the tender document for Eskom to be able to determine the financial standing of the company. X 5

6. SHE Mandatory for Evaluation Mandatory for Contract Award SHE Policy signed by the company CEO. X SHE Plan. X A valid letter of good standing. X Approval certificate as an Asbestos Contractor from the Department of Labour. X Signed Annexure B Acknowledgement of Eskom’s rules aand requirements. X Baseline SHE risk assessment. X 6

7. QUALITY Mandatory for Evaluation Mandatory for Contract Award ISO 9001:2008 Certified Quality Management System – by any recognised national and/or international Accredited certification company OR QMS Manual with the following documents: Document control Control of non- conformity Corrective Action Preventative Action Control of Records Internal Audit X Signed and completed (Form A and B) X Evidence of QMS In Operation X Draft Quality Control Plan. X Draft Inspection and Test Plans. X 7

8. TECHNICAL Mandatory for Evaluation Mandatory for Contract Award Typical outages or maintenance or construction or other related work Project Programme and Method Statement. X Organisational Chart per outage/maintenance/ construction contract. X Proof of the ability to do design of specialised scaffolding structure drawings and engineering certification of such. X Proof of ability and capacity to design and erect scaffolding to a minimum height of 80m including hanging scaffolding and platforms. X Proof of at least 5 years specific Industrial Plant outages, construction or maintenance experience eg Power Station. X 8

9. TECHNICAL Mandatory for Evaluation Mandatory for Contract Award CV’s of management, overheads & supervision personal indicating career history and qualification relevant scaffolding supervision and management with detailed reference list of the project/s where such work was done including safety statistics. X Checklist for Induction and Medicals. X 9

10. TECHNICAL Mandatory for Evaluation Mandatory for Contract Award A proven record of managing a construction or maintenance/outage contract with more than 200 staff on Site. Training and certification documents from accredited training facility to be submitted. Sample Training Certificates for: Working at Heights Scaffold Inspection Scaffold Erectors Insulation X 10

11. TECHNICAL Mandatory for Evaluation Mandatory for Contract Award Schedule of Proposed Sub-Contractors / Sub- Consultants with relevant scaffolding and insulation experience with detailed reference list of the project/s where such work was done including safety statistics. X Proof of the ability to do specialised lagging, cladding, asbestos removal and storage. X Previous experience with regards to Scaffolding and Insulation. X Proof of stockholding or acquired by/through hiring of minimum 200 tons kwikstage scaffold. X 11

12. Stage 2 - Functionality 12 Suppliers will be evaluated on Safety Quality Technical SHE: All or nothing principle shall apply. Quality: All or nothing principle shall apply. Factory Assessment will only be done to suppliers that have passed Phase 1: Evaluation of a Tender Documentation.

13. STEP 2, 3, 4 AND 5 Step 2 – Local Production and Content Preference will be given to South African suppliers. Step 3 – Financial Analysis will be conducted for the purposes of establishing the tenderers financial viability and ability to meet all of its contractual obligations for the duration of the contract, should the tenderer be awarded the contract. 13

14. STEP 2, 3, 4 AND 5…cont. Step 4 – Price and Preference Analysis Price points and preference points will be added; and The tenderers with highest points (Price Points + Preference Points) will be awarded the contracts. Step 5 – Objective Criteria Eskom will contract with suppliers that have 51% or more black ownership. 14

15. OTHER CONDITIONS: The tender shall be submitted as 1 (one) original, 1 (one) copy and 5 (five) protected CD (disk) labelled Commercial and Pricing, Quality, SHE and Technical. Failure to submit a copy of the tender will be disqualified. 15

16. OTHER CONDITIONS: The deadline for tender submission is 10h00 hours on 15 April 2015 (South African Standard Time). The tenders will be opened at 10h00 South African Standard Time on 15 April 2015 at the following location: Tender Advice Centre CORP 3130 Opposite Main Reception Maxwell Drive Megawatt Park Sunninghill Sandton 16

17. 26 March 2015 Presented by Martin Sabelo Supplier Development and Localisation Scaffolding and Thermal Insulation

18. Eskom Supplier Development and Localisation Mandate 18 SOURCE: SD&L Our mandate is to achieve maximum and sustainable local development impact through leveraging Eskom’s procurement spend in a manner that allows flexibility within the business in order to accommodate government local development initiatives and policies The objective of government through various departments and across different spheres is to foster the creation of a sustainable economy by increasing the local supply base through manufacturing and other industry-building activities, develop skills and create employment opportunities.

19. Supplier Development and Localisation Gatekeeper 19 PREFERENCE Eskom, as a state owned enterprise, is tasked with achieving government socio-economic transformation and development initiatives through its procurement spend. Therefore, Supplier Development & Localisation (SD&L) sets targets on B-BBEE, Localisation, Industrialisation, Skills Development, Job Creation and Supplier Development.  Eskom’s Hierarchy of Procurement:  In terms of Eskom’s policy on procurement, black owned companies which are BWO, SMME’s large black owned companies will be given preference provided the following is complied with: o Black Owned local scaffolding and insulation companies; preference shall be given to Black Owned companies with at least 51% Black Ownership. A Shareholder agreement, must be submitted to substantiate ownership. o In the event that it is a joint venture, the same principle as above still applies.

20. Supplier Development and Localisation Gatekeeper 20  All tenderers should submit their CIPRO documents, with copies of identity documents of the directors and shareholders of their companies, so that we can identify companies that are black owned. Signed Shareholders and or Joint Venture Agreements of parties involved in the business must be submitted with the tender  Medical certificates will indicate if the owners of the companies are living with disabilities.  Local content Annexures C,D and E ..\Scaffolding & Insulation Enquiry\Annexure C - SD & L\Local content annexures CD and E.doc..\Scaffolding & Insulation Enquiry\Annexure C - SD & L\Local content annexures CD and E.doc  Skills and Development will be negotiated with successful tenderers who will be expected to fill-in the SD&L Matrix, indicated here-under.

21. 21 SD&L Matrix

22. Safety– Scaffolding and Thermal Insulation Presented by Puleng Khabo Date: 26/03/2015

23. INTRODUCTION Eskom has embarked on a drive to create and sustain a world-class culture and standard of Safety, Health and the Environment (SHE) In order to achieve this culture and standard, there was a need to introduce strategies and requirements that would support this platform by: – define the minimum Safety, Health and Environmental (SHE) requirements – ensure consistent implementation of these requirements – the elimination of injuries and fatalities through Eskom’s engagement in construction as a client 23

24. PROJECT DETAILS SCOPE: Scaffolding and Thermal Insulation SERVICE CATEGORY: Service or scope of work is considered to be high risk An “all or nothing approach” will apply All SHE requirements have to be met. Scoring = 100% 24

25. TENDER RETURNABLES Non-negotiable minimum SHE requirements that tenderers have to address and respond to when submitting tender returnables: Acknowledgement of Eskom’s rules and requirements SHE policy Baseline SHE risk assessment ( based on the scope of work) SHE plan ( mitigation measures to eliminate or minimise the risk) Valid letter of good standing Registration with DoL as an Asbestos Contractor Asbestos removal plan 25

26. SHE Policy The Occupational Health and Safety Act, Act 85 of 1993, requires the employer to provide and maintain as far as reasonable and practical a work environment that is safe and without risk to the health of employees. Section 7 of the Act provides direction to employers concerning the health and safety policy of the organisation. A health and safety policy is a written statement of principles and goals embodying the company's commitment to workplace health and safety signed by the CEO. There are no hard and fast rules about what to include in a policy. The employer should create a policy that is suitable and sufficient in order to address the health and safety need of the company. 26

27. Baseline Risk Assessment The purpose of conducting a baseline HIRA is to establish a risk profile or a set of risk profiles. It is used to prioritise action programmes for issue-based risk assessments. The output of a baseline risk assessment- is a risk profile or set of risk profiles; and it is a clear description of Activities Identification of hazards Assessment of risks which shall include Methodology (consequence, probability, severity, frequency etc.) Risk category ( high, medium, low etc.) Control measures to be implemented to eliminate or minimise the risk 27

28. SHE Plan Requirements to be considered when compiling a SHE plan: Results/outcome of the risk assessment Applicable legal & Eskom requirements (Minimum) Medical surveillance program/medical certificate of fitness x 1 Competency : Risk Assessor, SHE plan compiler, First aiders, SHE reps, Safety Officers etc. Incident management Emergency management & response Vehicle safety Training and awareness 28

29. Valid letter of Good Standing It is essential to ensure that all suppliers that perform work on Eskom premises be registered with the Compensation Fund in terms of the Compensation for Occupational Injuries and Diseases Act (COID Act). In order to ensure the above mentioned the supplier needs to produce a letter of good standing with the Compensation Commissioner. Based on Legislation in section 89, of the Compensation for Occupational Injuries and Diseases Act In order to ensure the above mentioned the supplier needs to produce a letter of good standing with the Compensation Commissioner. 29

30. EVALUATION CRITERIA Based on Annexure C1 SHE File submission requirements Files to be well organised Annexure C1 to be used as index page and documents to be filed accordingly Same information to be uploaded on the CD 30

31. Thank you

32. 26 March 2015 Presented by Sipho Sambo Quality Scaffolding and Thermal Insulation

33. PROCUREMENT QUALITY ASSURANCE Suppliers to comply with Supplier Contract Quality Requirements Specification – QM 58. Annexure (A and B) to be completed and signed. Quality assessment criteria (Spreadsheet attached). Annexure E - Quality\QM-58 Supplier Contract Quality Requirements Specification.pdfAnnexure E - Quality\QM-58 Supplier Contract Quality Requirements Specification.pdf Annexure E - Quality\Signed Quality requirements (Form A and B).pdfAnnexure E - Quality\Signed Quality requirements (Form A and B).pdf Annexure E - Quality\Scaffolding and Insulation- Quality Assessment Criteria.xltAnnexure E - Quality\Scaffolding and Insulation- Quality Assessment Criteria.xlt 33

34. 26 March 2015 Presented by Riaan Rijsbergen Scaffolding and Thermal Insulation TECHNICAL

35. Suppliers will be evaluated as follows: Annexure F -Technical\Technical evaluation criteria - Scaffolding & Insulation.docxAnnexure F -Technical\Technical evaluation criteria - Scaffolding & Insulation.docx 35

36. Thank you