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ROOTED IN AFRICA. INSPIRED BY THE WORLD. HOW TO DO BUSINESS WITH SAA SAA GROUP PROCUREMENT SUPPLIER INFORMATION 2016/17 [Excluding Mango]

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Page 1: ROOTED IN AFRICA. INSPIRED BY THE WORLD

ROOTED IN AFRICA. INSPIRED BY THE WORLD.

HOW TO DO BUSINESS WITH SAA

SAA GROUP PROCUREMENT SUPPLIER INFORMATION 2016/17 [Excluding Mango]

Page 2: ROOTED IN AFRICA. INSPIRED BY THE WORLD

PREAMBLE

WELCOME ON BOARD

ROOTED IN AFRICA, INSPIRED BY THE WORLD

South African Airways (SAA) is a multi-award winning airline

based in Johannesburg, South Africa.

SAA was founded on 1 February 1934. Over the past 82 years,

we worked hard as an airline to overcome historical challenges

and move with the times.

Today, we are a proud member

of the Star Alliance group; the largest

Alliance in world.

Page 3: ROOTED IN AFRICA. INSPIRED BY THE WORLD

THE NATION’S PRIDE South Africa’s national airline and the official airline of Bafana-Bafana,

South Africa’s national soccer team. We provide our customers with great choices of travel In the domestic market and regional space.

The airline pride is that it is South Africa’s most on-time* airline.

SAA have recently been voted ‘Best Business Class product in Africa’ in the

regional Category for the fifth time.

Page 4: ROOTED IN AFRICA. INSPIRED BY THE WORLD

REACHING OUT South African Airways flies to 27 carefully selected destination in Africa …including Abidjan, Accra, Blantyre, Dakar, Dar es Salaam, Douala, Harare, Kinshasa, Lagos, Libreville, Lilongwe, Livingstone, Luanda, Lusaka, Maputo, Mauritius, Nairobi, Ndola, Pointe Noire, Victoria Falls, Windhoek and our

newly opened route Abuja. We also offer daily flights from Johannesburg to following international destinations: London (Heathrow), Frankfurt, Munich, Perth, Hong Kong, New York,

Washington and Sao Paulo. SAA operates almost 600 flights per week between Johannesburg and Cape Town,

Durban, East London and Port Elizabeth. We also code-share flights with Mango airlines between Lanseria, Cape Town and Durban.

SAA Technical (SAAT) is a subsidiary of SAA. The sole provider of aircraft

maintenance to SAA, and supplies line maintenance to over 25 other domestic, regional and international airlines. Major maintenance is supplied to four other ongoing customers.

The other subsidiary is AirChefs, the catering arm of SAA, it provides catering services

to SAA and a number of airlines.

Page 5: ROOTED IN AFRICA. INSPIRED BY THE WORLD

Contents 1. INTRODUCTION

2. SAA PROCUREMENT TRANSFORMATION MISSION

3. SMME DATABASE REGISTRATION

4. PROCUREMENT PROCEDURES: RFQ & RFP PROCESS

5. ENTERPRISE AND SUPPLIER DEVELOPMENT SUPPORT

6. SAA CORPORATE PROCURED COMMODITIES

7. SAAT PROCURED COMMODITIES

8. AIRCHEFS PROCURED COMMODITIES

9. CONTACT DETAILS

ANNEXURE A

- SAA CORPORATE PROCUREMENT PLAN 2016/17

- SAAT CORPORATE PROCUREMENT PLAN 2016/17

- AIRCHEFS PROCUREMENT PLAN 2016/17

Page 6: ROOTED IN AFRICA. INSPIRED BY THE WORLD

1. INTRODUCTION

In support of South Africa’s National Developmental Goals, South African

Airways (SAA) has been encouraging Small Medium Micro Enterprises (SMMEs)

that are 51% and above Black Owned, Black Women Owned, Disabled Owned,

Military Veterans Owned and Youth Owned businesses to do business with SAA.

• Last year SAA hosted a series of Supplier Engagement Summits around the

country’s major towns/ cities with the objective to promote South African

government developmental goals of creating an enabling environment for

previously marginalised groups. This year SAA shall continue engaging

SMMEs to do business with SAA through various platforms.

• The key purpose of this document is to give an overview of SAA’s

procurement process, share some of the products procuring, even though

we are finalising the Enterprise & Supplier Development Programme the

document will also highlight common mistakes done by bidders and share

the SAA annual procurement plan for 2016/17 financial year.

Page 7: ROOTED IN AFRICA. INSPIRED BY THE WORLD

2. SAA PROCUREMENT TRANSFORMATION MISSION

To lead and accelerate transformation in the South

African aviation industry and focus on the inclusive

opportunities for black owned, women owned, disabled

owned, Military Veterans owned and youth owned

businesses;

Development and implementation of a sustainable,

environmentally friendly procurement.

Page 8: ROOTED IN AFRICA. INSPIRED BY THE WORLD

3. SMME DATABASE REGISTRATION

Compliant Small Medium Micro Enterprises (SMMEs) that are interested in doing

business with SAA can register their businesses on the SAA SMME (EMEs & QSEs)

database.

o EME = Exempt Micro Enterprise is a business whose annual turnover is < R10m,

i.t.o the new B-BBEE Codes of Good Practice.

o QSE = Qualified Small Enterprise is a business whose annual turnover is

>R10m<R50m, i.t.o the new B-BBEE Codes.

The SMME database registration forms can be downloaded from the SAA website

http://www.flysaa.com/za/en/footerlinks/aboutUs/saa-tenders.html (on the tender

section). SAA promotes doing business with SMMEs by utilising the SMME database

for operational purchasing (RFQ’s).

SMMEs should also register on the National Treasury Central Supplier Database

(CSD). To access the CSD website for self-registration click on the link:

www.csd.gov.za and complete the online registration process. There after

registering, kindly please submit the CSD Registration Summary Report to SAA by

email to the following addresses: [email protected] and

/[email protected]

Page 9: ROOTED IN AFRICA. INSPIRED BY THE WORLD

4. PROCUREMENT PROCEDURES: RFQ & RFP PROCESS

SAA operates a centralised procurement function for both Operational and strategic procurements on the following basis:

• Any procurement of goods and services to the value of R500k (All Taxes inclusive) is to follow a three quote Request For Quote (RFQ) system;

• Any procurement of goods and services to the value exceeding R500k (All Taxes inclusive) follows the open tender process, confinement or sole source approach, depending on the nature of the request.

• For RFQs enquiries email [email protected]

Page 10: ROOTED IN AFRICA. INSPIRED BY THE WORLD
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4.3 Most common mistakes by potential suppliers / bidders

• Do not address the functional scoring items in the proposal – prospective suppliers should be able to score themselves in the outline of their submission and determine their own scoring

• Documentation requested as proof - not always provided with proposal such as certificates, proof of experience, CV’s etc.

• Provide outdated or no Tax and B-BBEE certificates. No business can be conducted without having a valid Tax clearance certificate. No scoring for an outdated B-BBEE or if the B-BBEE certificate is not provided.

• Bidders do not adhere to the closing date and time, specifically the closing time. Proposals will not be accepted or evaluated after the closing time.

• When stating that all prices submitted must be firm, and further stated that “Firm” prices are deemed to be fixed prices, which are only subject to the following statutory changes, namely VAT, and validity of RFQ to be 60 days or RFP/RFB to be valid for 120 days, suppliers do request price escalations soon after an award, which will not be acceptable. Make sure of your pricing structures prior to bidding.

Page 13: ROOTED IN AFRICA. INSPIRED BY THE WORLD

5. ENTERPRISE AND SUPPLIER

DEVELOPMENT (“ESD”) SUPPORT • Enterprise and Supplier Development (“ESD”) means monetary and

non-monetary contributions carried out to beneficiaries, with the

objective of contributing to the development, sustainability and

financial and operational independence of those beneficiaries.

• Exempted Micro-Enterprises or Qualifying Small Enterprises which are

51% Black Owned or 30% Black Women Owned, Disabled Owned,

Military Veteran Owned are priority to the transformation of the SAA

procurement.

• SAA and DTI have signed a memorandum of understanding on the

development of key products the airline is procuring by enrolling the

qualifying awarded suppliers and projects on the Black Industrialists

Programme to support industry transformation and local production.

Page 14: ROOTED IN AFRICA. INSPIRED BY THE WORLD

Ideally Enterprise and Supplier Development (ESD) budget is the 3% Nett Profit

after Tax (NPAT) of the company. Although SAA has not recorded NPAT, ESD

remains a priority as explained hereunder:

SAA utilises its supplier database as one of the vehicles to achieve the development

objectives.

SAA provides engagement sessions and exposure to SMMEs through hosting Supplier

Summits, at this sessions commodity managers engage with prospective suppliers on

procurement process, common mistakes by SMMEs when tendering and showcase

some of the products they procure to keep the airline operational.

SAA provides training/ workshops to suppliers on tender- procurement process and

tips on how to submit acceptable tender documents.

Where feasible and viable, SAA is setting out to unbundle its big contracts to allow and

increase participation of SMMEs, encouraging its Large Enterprise and Qualifying Small

Enterprises (QSEs) to subcontract with SMMEs.

The key element of supporting SMMEs is that the airline pays small business suppliers

within fifteen days of receiving required mandatory documentation.

Page 15: ROOTED IN AFRICA. INSPIRED BY THE WORLD

SAA provides rent free space for SMMEs that secured a tenders with

SAA and whose services are required onsite (for example, office space

and storage facilities)

SAA is currently finalising the development of its ESD programme.

This proposed programme has been developed taking into cognisance

SAA’s loss making situation.

- The collaborative initiative will include but not limited to development

finance institutions and business development agencies. The latter

would conduct business diagnosis and render business support

services, in certain instances.

- It is envisaged that this network of partners would be carefully grown

over time to address the evolving execution requirements of SAA’s SD

programme and in line with the airline’s implementation capabilities.

- The programme will be advertised on the SAA website.

Page 16: ROOTED IN AFRICA. INSPIRED BY THE WORLD

6. SAA CORPORATE PROCURED

COMMODITIES - CORPORATE & PROFESSIONAL SERVICES

- IN-FLIGHT SERVICES

- ENERGY& FLEET

- HOSPITALITY AND MEDIA

- GROUND HANDLING SERVICES

- SECURITY

- FACILITIES

- IT SERVICES

- FLEET & AIRCRAFT ACQUISITION

Page 17: ROOTED IN AFRICA. INSPIRED BY THE WORLD

NAME OF COMMODITY: CORPORATE & PROFESSIONAL SERVICES

Commodity Manager: Silas Matsaudza

Brief List of goods and services

The commodity group is

responsible for the sourcing of

suppliers/service providers to

satisfy SAA’s professional and

corporate requirements, such as

training services, legal services,

consulting services, external

audit, and recruitment related

services, routine and ad hoc

corporate requirements such as

office and pre-printed stationary,

uniforms, archiving and courier

services. Listed below are some

of the requirements that falls

under Corporate & Professional

Services Commodity Group.

• Legal services

• Training services

• Banking services

• Recruitment & executive search

• Crime line-Anonymous calls

• Archiving services

• Courier services

• Consulting services

• Employment wellbeing

• Printing solutions

• Office stationary

• Pre-printed stationary

• FDC, Cabin and ground staff uniform

• Printing paper

Page 18: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: IN-FLIGHT SERVICES

Commodity Manager: Bozena Kowalski

Brief List of goods

The commodity group is

responsible for the

sourcing of

suppliers/service

providers to satisfy SAA’s

passenger

needs/experience on-

board the aircraft.

Comfort items (eg. Linen, Amenity Kits,

Headsets, etc.)

Tray set-up items (eg. Crockery, Glassware,

Cutlery, etc.)

Beverages

- a.(Non-alcoholic i.e. juices, soft drinks, coffee,

tea, etc.)

- b. (Alcoholic i.e. Beer, Wines, etc.)

Consumables (Sugar, Salt & Pepper, nuts, etc).

Disposable Paper Products.

Disposable Plastic Products.

Plastic rotable products.

Galley Equipment & Maintenance.

Magazines and newspapers.

Stainless Steel Products.

In-flight Entertainment (On-board videos)

Page 19: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: FLEET & AIRCRAFT ACQUISITION

Commodity Manager: Bertus Steyn

Brief List of goods or services:

Aircraft Leasing (Cargo and

passenger)

Aircraft- Wet leases, Dry lease, Charter

Services, Aircraft Inspection Services at

Factories, e.t.c

Fleet Services

• Fuel ( Diesel, Petrol and Polyfuel)

• Cargo Trucking (i.e. Sprinter and

National)

• Vehicle purchases

• Vehicle Maintenance

• Vehicle Hire / Lease

• Freight Services

• Forklifts

• Chauffeur services

• Cargo consumables including nets,

pallets and ULD’s

Flight Operations Services Flight Navigation Systems (i.e. charts,

software etc)

Simulator (Lease and service)

Baggage Handling Services

Baggage Repairs Services

Page 20: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: HOSPITALITY AND MEDIA

Commodity Manager: Bozena Kowalski

Brief List of goods and services

The Hospitality and Media Commodity

Group is responsible for the following

services:

Hospitality: responsible for sourcing of SAA

Cabin and Flight Deck Crew hotel

accommodation and Crew transport at all

applicable to SAA destinations: i.e.

International, Regional and Domestic

locations.

Social Media Agency

(international location)

Digital Marketing Agency

(international location)

Advertising Agency (international

location)

Media Planning and Buying

Corporate Clothing and

Promotional Items

Transport provision for delayed

flights

Crew and Staff transport at JNB,

Durban and CPT

Production and Publishing of the

Inflight Magazine - ‘Sawubona’

Corporate Exhibitions

Sourcing of Hotel Accommodation,

for SAA Crew for Domestic

Market: Johannesburg, Port

Elizabeth, Cape Town, and

Durban.

Whereas the Media part of the above

mentioned portfolio entails the following:

sourcing of the following

services/products, to satisfy SAA’s

Marketing and Group Corporate Affairs

Departments needs/requirements: e.g.

Corporate Clothing and Branded

Promotional Items, Brand Design, Media

Planning and Buying, Advertising,

Production and Publishing of Inflight

Magazine, Global advertising and Media

Monitoring, etc.

Page 21: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: ENERGY

Commodity Manager: Thami Sogwazile

Brief List of services

Energy - To ensure the security of supply

and delivery of Jet Fuel at all SAA and SAA

affiliate locations.

Jet Fuel

Page 22: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: GROUND HANDLING SERVICES

Commodity Manager: Thami Sogwazile

Brief List of services

The commodity group is responsible for the

sourcing of suppliers/service providers to

render Ground Handling requirements to

SAA Aircraft’s at each destination served by

the Airline, like Johannesburg, Cape Town,

Durban, Port Elizabeth and East London.

Ground Handling is a regulated service and

the Handler should be an

accredited/licensed service provider as

appointed by the Airports Authority. Ground

Handling services are prescribed by IATA –

and covered under the IATA Airports

Handling Manual (AHM) 810 of January

2013 - Listed below are some of the

requirements that falls under Ground

Handling Services Commodity Group.

Management Functions

Passenger services

Ramp services

Load Control and Flight

Operations

Cargo and Mail Warehouse

Services

Support Services

Security

Page 23: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: SECURITY SERVICES

Commodity Manager: Thami Sogwazile

Brief List of services

The Security part of the aforesaid

Commodity portfolio is responsible for the

sourcing of suppliers/service providers to

satisfy SAA’s Aviation and General security

services, including any other security related

services which arise aim to enhance security

services for SAA’s operations.

Aviation and General security tenders are

confined to ACSA accredited companies. The

remainder of the tenders in this Commodity

are open to the general public.

CCTV

Aviation Security

Physical Security

X-Ray machines

Boom Gates

TPU (Tactical Patrol Unit)

Page 24: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: FACILITIES

Commodity Manager: Thami Sogwazile

Brief List of services

South African Airways Facilities

Management mission is to design, develop,

implement, extend the life expectancy of

Facilities & Assets and improve the delivery

of Facility Services for SAA within agreed

time, cost, business and quality

requirements.

Project Management

o Internal renovations and

furniture

o Design and drawing

management

Engineering and Maintenance

o Engineering projects

o Electrical and Mechanical

maintenance

o HVAC maintenance

o Civil and General building

maintenance

o Energy management

Soft and work place services

o Cleaning

o Landscaping and gardening

o Catering

o Boardroom management

o Parking

o Office moves

Compliance and Call Centre

Page 25: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: IT SERVICES

Commodity Manager: Mzolisi Rungqu

Brief List of services

IT Commodity entails sourcing of IT

solutions and services. Some of the

solutions are used for operations

which are common to many corporate

environments and some are aviation

specific.

SAP Projects

o SAP Procure to Pay optimisation

o SAP Business Warehousing re-

implementation

o SAP Performance Management

implementation

o SAP Mobility

IT Hardware

o SAN Storage

o Servers

o Desktops

o Laptops

o Mobile Devices (Tablets, Smart Phones)

o Switches

o Routers

IT Software

o Aviation specific software

o Software vendors

IT Servers

o Software developers

o Network specialist

o Desktop services

o Telephony specialist

o Servers specialist

Page 26: ROOTED IN AFRICA. INSPIRED BY THE WORLD

7. SAAT PROCURED COMMODITIES

Aircraft Exteriors

Aircraft Interiors

Page 27: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: Aircraft : Exteriors

Commodity Manager: Belinda Rothquel

Brief List of Services and Goods:

The aircraft exterior commodity group is

responsible for sourcing of suppliers/service

providers to satisfy the technical operational

requirements of SAAT related to the exterior

of the aircraft, which include requirements as

regulated by the Federal Aviation

Administration (FAA), European Aviation

Safety Agency (EASA) and South African Civil

Aviation Authority (SACAA). Some of the

goods and services sourced are Aviation

specific, while some are common to

corporate environments.

Engine Repairs and Overhaul

services

Engine Leases

APU Leases

Power Plant procurement

support services

Wheel and Brakes service

providers

Aircraft Tyres

Aircraft Paint

Aircraft cockpit windows

Tooling, Equipment and

Training

General:

Biological monitoring services

Customs tariff audit

OEM licences

Disposal of Redundant Assets

Disposal of surplus material

Facility upgrades

Page 28: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: Aircraft : Interiors

Commodity Manager: Mmapitso Khoetha

Brief List of Services and Goods:

The aircraft interior commodity

group is responsible for sourcing of

suppliers/service providers to

satisfy the technical operational

requirements of SAAT related to the

interior of the aircraft, which include

requirements as regulated by the

Federal Aviation Administration

(FAA), European Aviation Safety

Agency (EASA) and South African

Civil Aviation Authority (SACAA).

Some of the goods and services

sourced are Aviation specific, while

some are common to corporate

environments.

Landing Gear Repair and Overhaul

services

Avionics

Standard Hardware

Sealants

Igniters

Aircraft Lubricants and Greases

Aircraft metals

Tooling and Equipment

Inflight Entertainment

General:

Liquid waste absorbent

Rags

Tooling

Natural Gas

NDT Services

Page 29: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: Aircraft : Interiors

Commodity Manager: Ouma Bingwa

Brief List of Services and Goods:

The aircraft interior commodity group is

responsible for sourcing of

suppliers/service providers to satisfy

the technical operational requirements

of SAAT related to the interior of the

aircraft, which include requirements as

regulated by the Federal Aviation

Administration (FAA), European Aviation

Safety Agency (EASA) and South African

Civil Aviation Authority (SACAA). Some

of the goods and services sourced are

Aviation specific, while some are

common to corporate environments.

Component Repair and Overhaul

services

APU Repair and Overhaul services

BFE (Buyer Furnish Equipment) for

new Aircraft

Aircraft Tapes

Aircraft Batteries

Tooling and Equipment

General:

Gas cylinders and Bulk gas

Waste disposal

Logistics support

Safety shoes

Plastics

Atec support

Page 30: ROOTED IN AFRICA. INSPIRED BY THE WORLD

8.AIRCHEFS PROCURED COMMODITIES

Food and Non food

Page 31: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: Catering

Commodity Manager: Zainab Sadulla

Brief List of services

At Air Chefs, we are fanatical about food.

We have been in the food industry since

1986 and have firmly established

ourselves as a market leader in the

Southern Africa airline catering industry.

Working from our Central Production

Units in Johannesburg, Cape Town and

Durban, our enthusiastic and meticulous

team is capable of producing over 30 000

mouthwatering meals every day. We offer

a versatile catering service, from

providing in-flight meals to our airline

clients, to supplying staff restaurant

meals to our corporate clients, ready-

made meals for contract caterers and a

multitude of other food

service offerings.

Refrigeration maintenance,

services and repairs

Building maintenance

Fleet maintenance & Fleet hiring

Cleaning services

Electrical maintenance services

Kitchen equipment maintenance

and repairs

Gardening services

Freight forwarding services

Supply of packaging equipment

Supply of office stationery

Supply of staff clinic services

Supply of car tracking services

Provision of security services

Container hiring

Provision of waste removal

services

Provision of microbiological

services

Page 32: ROOTED IN AFRICA. INSPIRED BY THE WORLD

COMMODITY NAME: Catering

Commodity Manager: Zainab Sadulla

List of services

Supply of pre-printed cards, labels &

stickers

Red meat products & Poultry products

Seafood products

Frozen vegetables

Frozen fruits & Dairy products

Bakery products & Desserts products

Cold beverages & Hot beverages

Assorted dry goods / groceries & ssorted

dry snacks

Savoury dry biscuits

Prepared meals

Whole fruits & vegetables

Cut fruits & vegetables

Freshly squeezed juices

Fresh eggs & Liquid eggs

Wet ice & Dry ice

Gas

Sauces & Spices

Pasta

Olives and olive oil

Page 33: ROOTED IN AFRICA. INSPIRED BY THE WORLD

South African

Airways (SAA)

Corporate

Nico Mookeletsi

Supplier Development

011 978 6530

[email protected]

Reinette Slabbert

Vendor Master

011 978 3753

[email protected]

Silas Matsaudza

Corporate & Professional Services

011 978 1629

[email protected]

Bozena Kowalski

Inflight Services

011 978 3995

[email protected]

Thami Sogwazile

Energy & Ground Handling Services,

Security Services, Facilities

011 978 6831

[email protected]

Bertus Steyn

Fleet & Aircraft Acquisition

011 978 3525

[email protected]

Mzolisi Rungqu

IT Services

011 978 3264

[email protected]

South African

Airways

Technical

(SAAT)

Princess Tshabalala

Supplier Development

011 978 6354

[email protected]

Belinda Rothquel

Aircraft Exteriors

011 978 6354

[email protected]

Mmapitso Khoetha

Aircraft Interior

011 978 9262

[email protected]

Ouma Viwe Bingwa

Aircraft Interior

011 978 5774

[email protected]

9. SAA GROUP CONTACTS

Page 35: ROOTED IN AFRICA. INSPIRED BY THE WORLD

ANNEXURE A

- SAA CORPORATE PROCUREMENT PLAN 2016/17

- SAAT CORPORATE PROCUREMENT PLAN 2016/17

- AIRCHEFS PROCUREMENT PLAN 2016/17

Page 36: ROOTED IN AFRICA. INSPIRED BY THE WORLD

FOR MORE INFORMATION ON SAA PLEASE CALL US

OR VISIT OUR WEBSITE, WWW.FLYSAA.COM

SOUTH AFRICAN AIRWAYS

Airways Park, Jones Road

O.R. Tambo International Airport

1627, South Africa

Phone: +27 11 978 1111/5873

[email protected]

THANK YOU