SUPPLY CHAIN MANAGEMENT

PROJECT NAME:SUPPLY OF FUEL AUTOPAX PASSENGER SERVICES FLEET

PROJECT DESCRIPTION:APPOINTMENT OF A SERVICE PROVIDER TO SUPPLY AUTOPAX PASSENGER SERVICES WITH FUEL FOR A PERIOD OF 60 MONTHS

END USER:AUTOPAX PASSENGER SERVICES.

(REGION / DEPARTMENT):FLEET OPERATIONS MANAGEMENT

  1. Introduction

The mandate of Autopax Passenger Services (Autopax) is to provide an intercity bus passenger transport service operates on a fully commercial basis, support rail operations through effective feeder and distribution services and also to offer services to cities and municipalities in rural areas.

Autopax wishes to follow a Request for Proposals (“RFP”) process for the appointment of a service provider to supply Fuel Diesel to Autopax Nationally, the current foot print Harmony (Johannesburg), Salvokop (Pretoria) Epping(Cape Town), Queenstown and Port Elizabeth depots (Home base) as well as On Route designated refuelling stations countrywide, provision Fuel Management System and provision and installation of Anti-sypholing devices to the Autopax fleet.

  1. Background Information

2.1Status quo

Autopax entered into two separate contracts for home based supply and delivery of dieseland for on-route re-fuelling services.

Autopax had an historic Fuel Management System administered by a appointed service provider, installed at respective depots where the Diesel tanks are locatedto manage both the issuing of diesel as well as the management of the stock

Autopax has a e-tag / e-fuelling system for home based depots-the system has a nozzle reader (e-tag) installed on the vehicle fuel tank that recognise the pump nozzle and allow Diesel to automatically dispense.The system transmits transactional information from the Diesel tanks through a modem to a server which enables depot management to extract information data for analysis and reconciliation purposes.

2.1.1Current Home-base Infrastructure

Harmony depot

  • 2 x 30 m3 horizontal tanks
  • 2 x pumps
  • 1 x modem
  • 1 x CPU
  • Digital meter

Salvokop

  • 2 x 30 m3 horizontal tanks
  • 2 x pumps
  • 1 x modem
  • 1 x CPU
  • Digital meter

Cape Town

  • 1 x 30 m3 horizontal tanks
  • 1 x pump
  • 1 x modem
  • 1 x CPU
  • Digital meter

Queenstown

  • 1 x 30 m3 horizontal tanks
  • 1 x pump
  • 1 x modem
  • 1 x CPU
  • Digital meter

Port Elizaberth

  • 1 x 30 m3 horizontal tanks
  • 1 x pump
  • 1 x modem
  • 1 x CPU
  • Digital meter

2.1.2Current Environment: En-route

  • Autopax utilises the card system to transact for on-road fuelling.

2.1.3Problem statement

  • Autopax has a fleet of 520 buses which is a combination of City to City and Translux buses. Autopax operates an inter-city transport services which reaches the rural areas. To operate buses, Autopax is reliant on fuel and fuel must be accessible at depots and on road.
  • Fuel is major cost driver of the business and therefore management of fuel is of utmost importance.
  • E-tags currently fitted on our vehicles are not durable and does not prohibit driver tampering
  • The current e-tag system is prone to frequent defects which may lead to fuel pilferages.
  • The current system does not give accurate readings on kilometres clocked for reporting purposes.
  • The current use of cards to transact is susceptible to cloning, theft and loss.
  1. Objective of the Proposed Project
  • Autopax wants to ensure a reliable and regular supply of Diesel / fuel for continued uninterrupted operations.
  • Fuel management system is imperative to eradicate fuel pilferage and provide valuable information to enable decision making.
  1. Scope of work and area of focus

4.1Specifications of the Work or Products or Services Required

The prospective bidder will be expected to supply 500ppm diesel for depots and re-fuel buses that are on-route. The diesel must be suitable for the use of high-speed compression ignition engines and be in accordance with the latest issue of SANS 342. Prospective bidder must include in their bid a Technical Data Sheet for the product on offer.

4.1.1Supplyand Delivery of Fuel at Home Based Depots

Table 1 FUEL REQUIREMENTS

Product type- Diesel 500ppm / Epping
(Cape Town)
Mon & Fri
20000 Litres per delivery / Harmony (Johannesburg)
Mon, Wed and Fri
40000 Litres per delivery / Salvokop (Pretoria)
Mon, Wed and Fri
40000 Litres per delivery / Port Elizabeth
(Western Cape)
Mon & Fri
8000 Litres per delivery / Queenstown
(Eastern Cape)
Mon & Fri
8000 Litres per delivery
Total / 40000 x 4 = 160000 x 12 = 1920 000 / 120000 x 480000 x 12 = 5760 000 / 120000 x 480 000 x 12 = 5 768 000 / 16000 x 4 = 64000 x 768 000 / 16000 x 4 = 64 000 x 768 000
Grand Total / 14976 000

NB: frequency of supply per months shall be eight (8) times normally.

  • The diesel fuel must be delivered to Autopax depots ( refer to table 1 above )
  • The prospective contractor is required to deliver the requested fuel orders, under normal circumstances, by 08:30 hrs the next day for each order placed.
  • However, under urgent circumstances, the contractor may be required to deliver the requested fuel within 8 hours, upon an order being placed.
  • Bulk deliveries will be accepted through certified assized tanker meters reading litres and tenths of a litre

4.1.2On – road Fuel Supply for 500ppm Diesel.

  • Regular supply of diesel fuel at designated areas / points.
  • The prospective contractor is required to avail fuel as per table listed below per area or site on a 24 hour basis. (See table 2). The estimated total litres per month for On Road fuel is 600000 litres per months.
  • The principal purpose of the supply of fuel must provide and enhance the effective operations of busses on-route. On Road fuel average = 595 798 l / month (refer to attached table 2 indicative of current on –road fuelling sites)

4.1.3Automated Fuel Management System

The prospective bidder will be required, at their own cost, to provide and maintain an automated fuel management system, including all hardware and software to support the system based on latest advanced technology for provision of accurate information.

  • Prospective bidder must demonstrate the innovation ideas on how they can assist Autopax on fuel efficiency and technological aspects to achieve effective consumption.
  • The proposed Fuel management system must include home base and on-route solutionincluding stock management technologies.
  • Fuel management system must be able to provide a comprehensive automated report on fuel consumption per vehicle, report on total kilometres travelled each time the bus re-fuels (the reading of kilometres travelled should be automatic an should not require human intervention) and average litres per hundred kilometres
  • Provide exception report on a daily basis.
  • The system should cater for managing the following parameters

Litres dispensed at any given time should not exceed vehicle tank capacity level.

Contingency backup plan if system is off line

Have capacity to enable to refill outside during downtime and be able to account and detect for such transaction

Irregular usage / anti-theft detector / detection of discrepancies

  • Successful Service provider must provide on the site training and support at regular intervals. The technical training on quarterly basis and support plan must be included in the proposed bid.
  • Any technological advancements on the automated fuelling system must be communicated in advance and system upgraded accordingly ( also on-site training to be provided on system enhancement)
  • Platinum support - Personalised daily health checks

24/7 remote fault monitoring

Industry leading response times

24/7 HW and SW support

08:00 -17:00 daily onsite support (weekends and public holidays included)

4.1.3.1Current ICT Environment

Autopax primarily use SAP ERP solutions – enterprise resource planning solution, these enables the business to optimize critical business functions such as accounting and financial, human capital management, supplier relationship management, plant maintenance and other systems.

4.1.4Anti-siphoning Devices

The prospective bidder is further required to supply, install and maintain anti-siphoning devices to eradicate fuel theft. The device is specifically required to prevent siphoning of fuel from buses.

  1. Insurance

The prospective bidder and any subcontractors shall, provide as a minimum the following insurances:

  1. Public liability insurance

The bidder will be required to provide indemnity against liability in the event of accidental death or injury to third parties and / or loss of or damage to third party arising directly from the execution of the contract. The amount required in respect of public liability will be a minimum of R5 million or as otherwise agreed between the parties.

  1. General insurance

Insurance of plant, machinery and equipment, including but not limited to tools, offices and other temporary structures and contents, and other objects brought onto site by the bidder for a sum sufficient to provide for the replacement or the minimum of R5 million or as otherwise agreed to between the parties.

  1. Time Frames / Programs
  • It is recommended that 60 months contract duration is entered into given that the prospective bidder is expected to implement an automated fuel management system which includes hardware and software, provide necessary training and maintain the system – a shorter period will not allow bidders to recover such costs therefore bidders maybe discouraged to respond to the bid.
  • It is also expected that bidders will be encouraged to give more favourable discounts for fuel in a long term contract than a short term contract.
  • Program of the works

Milestones / Planned Competition Date
BSC Approval / 12 October 2017
BAC for noting / 27 October 2017
Preparation Tender document / 14 October 2017
Tender advertisement on e-Tender / 14 October 2017
Tender Evaluation / 13 November 2017
Tender Adjudication / 20 November 2017
Preferred Bidder Award / 24 November 2017
Contract negotiation and approval by both parties / 30 November 2017
Contract administration & inspection during delivery through the contract period / Quarterly
Contract period / 60 Months
  1. Evaluation Criteria

The evaluation will be done in three stages as follows:

Stage 1: Compliance Requirements (Indicate all Compliance Requirements)

  • Valid Tax Clearance Certificate (must be valid on closing date of submission of the proposal);
  • Valid BBBEE Certificate from a SANAS accredited rating agency or IRBA;
  • Letter from auditors confirming shareholding of the Bidder;
  • Completed and signed Tender Forms of AUTOPAX with all the annexures thereto;
  • Certificate for Attendance of Compulsory Briefing Session/ Site Visit
  • Bank Rating Code
  • Company registration documents
  • Letter of good standing (COID)
  • Copies of Directors IDs
  • Consortium or Joint Venture Agreement (whichever if applicable)
  • Company letter head
  • COR, CM 29 (Contents of Register of Directors as issued by Companies Registration Office)
  • Proof of UIF Registration
  • Register on CSD ( central data base)

Note: If a bidder is a Consortium, Joint Venture or Prime Contractor with Subcontractor(s), the compliance requirements listed above must be submitted for each Consortium/ JV member or Prime Contractor and Subcontractor(s).

7.1Technical Compliance

  • Provide a certified copy of Petroleum site and retail licences (On-road)
  • Provide a certified copy of Petroleum Wholesale Licences (Home-base)

The bidder must demonstrate compliance with the following standards:

No. / Standard / Yes / No / Comments
1. / SANS 342:2006 – Specification for Automotive Diesel fuel / Comply
2 / SANS 1518 – Transportation of dangerous goods – Design Requirements for Road Tankers / Comply / Not comply
3 / SANS 10229 – Packaging of dangerous goods for road and transportation in SA / Comply / Not comply
4 / SANS 10231 – Transportation of dangerous goods – Operational Requirement / Comply / Not comply
5 / SANS 10232 – 1: Transportation of dangerous goods – Emergency Information system for road transport / Comply / Not comply
6 / SANS 10232 -3: Intermediate Bulk Containers for dangerous substance / Comply / Not comply

Please provide documents as proof supporting a response of “Compy”. A response of a ‘No’ will lead to disqualification of the bid.

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Stage 2: Technical / Functionality Requirements

NOTE: The Technical or Functionality criteria must be guided by the project scope of works and area of focus.

Bidders who do not achieve the 80% threshold on technical evaluation will beautomatically disqualified.

CRITERION / INDICATOR / WEIGHT / SCORE
Experience / Provide a list of similar projects and values ( current and completed in last 5 years)
  • Supply and delivery of fuel at depots
  • Supply of diesel fuel on route facilities
  • Automated Fuel Management System
(provide reference letters from your current and previous client in the past five years – the letter should include contact details (name, designation, email and contact number and indicative of contract value) / 30 / 1 / Poor / 6 projects over a 10 Million per annum (2 for home-base, 2 for on-road and 2 for automated fuel management system)
2 / Average / 6 projects over a 30 Million per annum (2 for home-base, 2 for on-road and 2 for automated fuel management system)
3 / Good / 6 projects over a 50 Million per annum(2 for home-base, 2 for on-road and 2 for automated fuel management system)
4 / Very good / 6 projects over a 100 Million per annum (2 for home-base, 2 for on-road and 2 for automated fuel management system)
5 / excellent / 6 projects over a 150 Million per annum (2 for home-base, 2 for on-road and 2 for automated fuel management system)
Capacity (Home-base /
  • Provide a list of fleet for delivery (Home-base) and demonstrate how the fleet will be aligned to Autopax requirements
  • Provide a description of infrastructure and depots – demonstrate compliance with all applicable legislation
  • Current workload
/ 25 / 1 / Poor / Information provided is inadequate
2 / Average / Information provided is poor and poorly presented
3 / Good / Information provided is adequate
4 / Very good / Information provided exceeds the requirements
5 / excellent / Information provided far exceeds the information required
Capacity (On-route) /
  • National Footprint - Countrywide coverage on Autopax routes
Provide a list of fuelling sites inclusive of physical address – route maps
(stipulate agreements with the other suppliers where applicable) / 25 / 1 / Poor / 95% required fuelling sites
2 / Average / 98% required fuelling sites
3 / Good / 100% required fuelling sites
4 / Very good / 10 % more than the required fuelling sites
5 / excellent / 20 % more than the required fuelling sites
Roll out Plan for Automated Fuel Management system on (tanks and vehicles) / Provide a roll out plan for the automated fuel management system – the plan should include but not limited to the following points
  • Team
  • Timelines
  • Communication
  • System launch
  • Training
  • Support
  • maintenance
/ 20 / 1 / Poor / The roll out plan is inadequate
2 / Average / The roll out plan is poor or poorly demonstrated;
3 / Good / Roll out plan is adequate and covers key requirements
4 / Very good / Roll out plan covers all requirements
5 / excellent / Roll out plan is excellent, include milestones
Total score / 100

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SCORING LEGEND:

RATING / SCORE / SCORE DESCRIPTION
Compliance Exceeded / 5 / Excellent
Fully Compliant / 4 / Good
Partial Compliance / 3 / Not Compliant
Not meeting Compliance / 2 / Poor
No evidence of compliance / 1 / Very Poor

For the evaluation of the tender I have included the following and the following:

1 / Poor / 95% required fuelling sites
2 / Average / 98% required fuelling sites
3 / Good / 100% required fuelling sites
4 / Very good / 10 % more than the required fuelling sites
5 / excellent / 20 % more than the required fuelling sites

Stage 3: Pricing and BBBEE

Only Bidders who have achieved the 80% threshold for Technical evaluation will be evaluated for the Price component which is 90% of the Evaluation Criteria.

The BBBEE component of evaluation is weighted at 10% of the evaluation criteria. Bidders will be awarded the following points based on the level of their BBBEE as per their BBBEE Certificate issued by an agency approved by SANAS:

Only bids from bidders who are subcontracting a minimum of 30% to an EME or QSE which is at least 51% owned by black people shall be considered as pre-qualifying criteria for further evaluation.

Any bid which fails to meet the above stated pre-qualifying criteria as stipulated in the tender documents shall be automatically disqualified

BBBEE Status Level of Contributor / Number of Points
1 / 10
2 / 9
3 / 6
4 / 5
5 / 4
6 / 3
7 / 2
8 / 1
Non-complaint contributor / 0
  1. Functional Requirements
  2. SUMMARY OF WEIGHTS

CATEGORY / DESCRIPTION / WEIGHTING
Experience / 30%
Capacity (Home-base) / 25%
Capacity (On-route) / 25%
Roll out Plan for Automated Fuel Management system on (tanks and vehicles) / 20%
Total / 100

ANNEXURE “A”

TABLE 2: List of current re fuelling points inclusive of spend countrywide for the month of May 2017.

Outlet / Litres / Values
ExelRoelf & Jacks / 11 516.64 / R 124 888.63
Golden Exel Service Station / 32 483.82 / R 362 362.19
Junction Motors / 2 044.55 / R 23 345.54
Mageza Service Station Ridge Park / 24 695.25 / R 269 994.20
Sasol Abbotsford / 14 168.72 / R 153 026.08
Sasol Arkwright / 4 478.34 / R 50 088.43
Sasol Davest / 8 578.62 / R 95 767.83
Sasol De Bron / 234.51 / R 2 532.84
Sasol Disa Road / 114 251.96 / R 1 232 936.33
Sasol Duncanville / 5 188.60 / R 58 032.41
Sasol First Avenue / 19 063.89 / R 218 636.25
Sasol Gateway / 6 948.49 / R 79 820.06
Sasol George Highway / 256.61 / R 2 786.42
Sasol Harkerville / 437.73 / R 4 775.44
Sasol Kimberley / 1 085.69 / R 12 451.35
Sasol Kingsview / 112.10 / R 1 285.64
Sasol Komatipoort / 2 352.83 / R 26 983.67
Sasol La Belle / 10 383.76 / R 112 150.84
Sasol Lydenburg / 242.71 / R 2 744.45
Sasol Malamulele / 538.61 / R 6 373.70
Sasol Malelane / 479.18 / R 5 495.52
Sasol NMR / 3 200.01 / R 34 499.21
Sasol North Reef / 12 178.62 / R 136 048.16
Sasol Northmead / 2 520.45 / R 28 190.21
Sasol Norwood Mthatha / 204.72 / R 2 292.79
Sasol Owen Dam / 46 621.88 / R 517 517.44
Sasol Parys / 429.16 / R 4 799.99
Sasol Port Shepstone / 4 962.80 / R 54 148.83
Sasol Queenstown / 51 675.14 / R 568 389.21
Sasol Ravenswood West / 931.67 / R 10 420.36
Sasol Risiville / 48 758.14 / R 544 703.87
Sasol Sherita's / 2 083.44 / R 23 272.27
Sasol Skinner Street / 22 877.87 / R 255 879.71
Sasol Stanford Road / 6 455.59 / R 69 492.35
Sasol Stormvoel Road / 33 017.61 / R 369 133.30
Sasol Umgeni / 49 970.06 / R 538 943.84
Sasol Vereeniging / 2 277.71 / R 25 454.22
Sasol Viking / 23 444.31 / R 261 652.50
Sasol Welkom / 465.67 / R 5 197.16
Sasol West Star / 6 244.77 / R 69 845.25
Sasol Zebetiela North / 9 986.71 / R 114 315.71
Sasol Zebetiela South / 7 809.91 / R 89 289.45
Volkstud Motors / 139.77 / R 1 565.37
Grand Total / 595 798.60 / R 6 571 529.02

PRICING SCHEDULE: SUPPLY DELIVERY OF DIESEL, AUTOMATED FUEL MANAGEMENT SYSTEM AND ANTI-SIPHONING DEVICES

This section should be completed and signed by the Bidder’s authorized personnel:

There will be price adjustments allowable that shall be applied at the anniversary of the contract as per CPI.

All rates quoted below are inclusive of VAT

Item / Fuel Zone and Magistrate District / Estimated Quantity per depot / Price per litre / Discounted price per litre / Total Price (Quantity x Discounted price per litre)
500ppm Diesel (Home-base)
1 / 01A – Cape Town / 1920 000
2 / 09C - Pretoria / 5760 000
3 / 05A - Queenstown / 768 000
4 / 01A – Port Elizabeth / 768 000
5 / 09C - Johannesburg / 5 760 000
Total / 14976 000
500ppm Diesel (On-road)
1 / National (Designated fuel stations) / 7200 000
Fuel Management System
Item / Description / Price per bus including installation and five (5) years’ operating cost / Time Required for the installation of the system
1 / Fuel Management System
Anti-siphoning Devices
1 / Anti-siphoning Devices / Price per bus / Time required for the installation of the devices

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