9 SUPPLIER DEVELOPMENT AND LOCALISATION REQUIREMENTS

Eskom, as a State Owned Entity is a participant in the Government’s Development initiatives has as such identified spending on infrastructure – such as power station construction - as key area for building local capacity and capability as well as transformation of the supply industry.

The Shareholder’s Compact with the Department of Public Enterprises (DPE) necessitated the formation of Supplier Development and Localisation (SD&L) function within Group Commercial Division to drive Government local development objectives.

TABLE 1: SUPPLIER DEVELOPMENT AND LOCALISATION COMPLIANCE MATRIX FOR SUPPLIERS AND CONTRACTORS
Criteria / Weight (%) / Total Target (%) / Proposed Target (%) / Total Overall Weighted Score
Local Content to South Africa / 33.33% / 100.00% / 0.00%
Local Content Local to Site / 33.33% / 100.00% / 0.00%
Skills Development / 33.34% / 100.00% / 0.00%
Total Score / 100.00%
Total Supplier Development and Localisation Score / 0.00%

9.1 Special Conditions of tendering

Special Conditions of Tender (Application of other criteria in terms of section 2(1)(f) of PPPFA)

The special conditions objectives are as follows:

  • Transformation of this sector by the appointment of Black Owned Companies,
  • Development of small black service provider (EME’s – Exempted Micro Enterprises),
  • Appointment of the companies located within the North West Province.

To achieve the above the following aspects will apply:

  • First preference will be given to suppliers that are within the North West Province
  • Appoint companies that are North West Province based

9.2Local Production and Content

As this tender does not concern a “designated sector” as per regulation 9 of the Preferential Procurement Regulations,2011. Eskom has not set local content threshold, however the tenderer will be expected to propose the local content. This will be incorporated into the contract.

Weight / Tenderer’s offer
Local content to SA (Non-designated)

The local content as percentage of the proposal price will be calculated in accordance with the SABS approved technical specification number SATS 1286: 2011 as follows:

LC = (1 – x/y)*100.

9.3 Local to site and Job creation

Local to site

The local to site percentage is set at 100% of the contract value and it will be incorporated into the contract

Job Creation

Number of jobs to be created as a result of this contract
Number of jobs to be retained as a result of this contract

9.4 Skills Development for the Project

Eskom intends to improve Skills Development by ensuring that technical support is directed towards enhancing supply capacity and capability within the industry or sector of operation. By doing this the capacity and competitiveness of the local supply base will be increased and the goals of shared growth, employment creation, poverty reduction and skills development will be achieved.

Skills development does no longer form part of the tender evaluation criteria. The tenderer is however, encouraged to propose Skills Development initiatives in terms of the following skills required for this project as indicated in the table (matrix) below. These will form part of the contractual obligation with the successful contractor.

Skills development matrix

Skill type / Eskom’s target / Tenderers proposal
Train the trainer – Facilitator (relevant to the contract) / 1 per contractor

The Tenderer is to provide the individuals in specified trades identified above with sufficient on the job and other skills training in the specified trade or discipline to:

achieve the outcome of passing a trade test and qualifying as an artisan, or the equivalent for any of the required skills and accordingly to be certified to that level; or (as applicable)

generally be regarded, when there is no industry standard test or certification for the trade or discipline in question, as being employable in that trade or discipline.

Application of B-BBEE preference points:

Tenderers are required to submit original and valid B-BBEE Status Level Verification Certificates or certified copies thereof together with their bids to substantiate the B-BBEE claims.

Tenderers who do not submit B-BBEE Status Level Verification Certificates or non-compliant contributors to B-BBEE will not qualify for preference points for B-BBEE however will not be disqualified from the tender process. Such a tenderer will score points out of 90 for price and 0 points out of 10 for B-BBEE.

Preference points will be allocated according to B-BBEE level contribution in terms of the following table:

B-BBEE / Qualification / Number of Points
(90/10 system)
For procurement above
R1 million
1 / ≥ 100 points / 10
2 / ≥ 85 points < 100 points / 9
3 / ≥ 75 points < 85 points / 8
4 / ≥ 65 points < 75 points / 5
5 / ≥ 55 points < 65 points / 4
6 / ≥ 45 points < 55 points / 3
7 / ≥ 40 points < 45 points / 2
8 / ≥ 30 points < 40 points / 1
Non-compliant contributor / < 30 points / 0

Points awarded to a tenderer for attaining the B-BBEE Status Level of contribution in accordance with the table above.

The points scored for price will be added to the points scored for B-BBEE status level of contribution to obtain the tenderers total points scored out of a 100.

Negotiations will be commence with the tenderers scoring the highest points after a mandate to negotiate post tender has been approved by the Delegation Authority.