1The scope of work

1.1Terms of Reference

1.1.1 Background

PRASA CRESS will evaluate proposals from the Respondents based on:

a)Experience and Credibility in the market

b)Capacity and Resources necessary to handle the scope of work

c)Price competitiveness and

d)Empowerment initiatives & BBBEE Rating

1.1.2 Type of Property Portfolio

Industrial and Retail and Mixed-Use (Refer Attached Annexure “A” named Property Schedule)

1.1.3 Location

Gauteng, Western Cape and KwaZulu Natal Provinces

1.2Expectations

The successful Respondent is expected to provide the following services:

a)To implement PRASA CRES Property Management Strategies and Mandates.

b)To compile income and expenditure budgets.

c)Management of property expenses and income i.e. Rental and Debt collection.

d)To perform all Lease Management Functions.

e)Responsible for Maintenance (Refurbishment) and Project Management as and when required.

f)Undertake Advisory work such Property Valuation, Business Case Development and Project Feasibility Studies.

g)Responsible for overall Facilities Management and Contract Management.

h)Account Payments and Credit Control Functions.

i)Control Procedures and Risk Management.

j)Take full responsibilities on Marketing of the properties and Reporting.

k)Contract duration is for the period of three (3) three years.

l)Internal (PRASA) skills transfer within the duration of the contract.

m)Fulfilment of all requirements as stipulated in 7.1

1.3 Disclaimer

The scope for property management services provided may extend to all other new Development Leases that PRASA may acquire through the “Acquisition of Development Leases Program” during the duration of the contract.

2.Technical Evaluation

CRITERIA / WEIGHT / SCORES
Years of Experience
Experience in the property management services offering in the industry / 10 / The number of years of experience in providing property management services in the market
  1. Less than 3 years’ experience
  2. 3 -4 years of experience
  3. 4 -5 years of experience
  4. 5 -7 years of experience
  5. 7 – 10 years or more of experience

Staff Experience
Qualifications of Key Staff / Size of the Organisation
+Experience of Key Personnel (based on Submitted CV’S)
(Complete table 2B.1) / 20 / The service provider/entity key personnel should have a minimum of 3 years’ experience in the asset management industry and must have been management positions during those years
  1. Less than 3 years with no experience
  2. More than 3 years but less than 5 years’ experience
  3. 5 to 10 years with property related qualifications
  4. 10 to 15 years with property related qualifications
  5. 15 years or more with property related qualifications

Proven track record
Organisational Experience
Provision of proof of related services provided currently and over the last 5 years with landlords with references and contact details
(Complete table 2B.2) / 10 / Point for every service provided or undertaken for various landlords including JSE listed entities within the last 5 years.
  1. Less than 2 service providers
  2. 3 to 4 service providers
  3. 5 to 6 service providers
  4. 7 to 8 service providers
  5. 9 or more service providers

National exposure
(Evaluation will be based on information populated in tables 2B.1 and 2B.2) / 10 / Demonstration of companies existence to various provinces with such evidence of national footprint is provided were similar services have been rendered in SA especially in KZN, GAUTENG and WESTERN CAPE
  1. One Province
  2. Two Provinces
  3. Three to five provinces including KZN,GP and WC
  4. Six to seven provinces including KZN.GP and WC
  5. Eight to nine provinces including KZN.GP and WC

Capacity:
Proposal Context / Understanding of the Brief / Implementation Flexibility / 25 / Demonstrated experience of management of various types of properties. Points will be allocated for experience in relation to various categories of property managed to date with specific experience for each property type:
  • Vacant Land Parcels
  • Single Tenanted Properties
  • Multi Tenanted Industrial properties and Shopping Centres
  • Shopping Centres, single and multi-tenanted Industrial Properties.
  • Mixed Retail Centres, Offices and single to Multi tenanted Industrial properties
  • All types of Commercial Properties
  1. Vacant Land Properties only
  2. Land and Industrial Properties only
  3. Land, Industrial and Offices only
  4. Land, Industrial, Offices and Retail Properties
  5. All commercial Properties

Current ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. / 15 / The gauge this ability, thecurrent ratioconsiders the currenttotal assets of a company (both liquid and illiquid) relative to that company’s currenttotal liabilities. Formula = current assets /current liabilities.
Current ratio:
1 = None submission
2 = x < 0
3 = x < 0.5
4 = 0.5 ≤ x ≤ 1
5 = x > 1
Net profit margin:
This determines the ratio of net profits to revenues for a company or business / 10 / Expressed as a percentage, net profit margins show how much of each Rand collected by a company as revenue translates into profit. Formula: net margin = net profit / revenue.
Net profit margin:
1 = None submission
2 = x < 0
3 = ≥ 5%
4 = ≥ 10%
5= > 15%

3. COMPLIANCE REQUIREMENTS

Bidders shall comply with the following requirements failure to comply shall lead to disqualification:

a)To be considered, the service provider/entity must be in possession of a relevant qualification or in the case of a company or joint venture, must have relevant qualifications amongst its members/employees.

b)Each member/employee to have necessary property related qualification or recognised tertiary qualification and or registered as a Property Practitioner in terms of the provisions of EAAB of South Africa

c)Proof of membership Estate Agency Affairs Board (EAAB) of South Africa is compulsory. Proof of qualification and registration must therefore be submitted in respect of each bidder or employees within a company or joint venture that submits this bid.

d)Certified copies will be accepted provided the PRASA can insist on having the original documents submitted for verification purposes. Failure to submit the required proof with the bid documents will result in the rejection of such bid irrespective whether such bidders are indeed qualified or registered.

e)If at any time for the duration of this project being valid and in operation, an appointed service provider and/or entity is being found guilty of some transgressions in the terms of the regulations of the EAAB, the appointment of such a firm will also be terminated and all instructions held by that firm will be cancelled and recalled.

f)No member of the team working on PRASA’s portfolio to be current Government Employee

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