t14/07/15 request for proposal to explore possible ... · competitiveness of furntech graduates and...

T14/07/15

REQUEST FOR PROPOSAL TOEXPLORE POSSIBLE SOLUTIONS TOIMPROVE THE PRODUCTIVITY ANDCOMPETITIVENESS OF FURNTECH

GRADUATES AND SMALL FURNITUREMANUFACTURES ACROSS THE

COUNTRY

BID CLOSING DATE: MONDAY, 20 JULY2015 AT 12:00 NOON

Industrial Development Corporation

TABLE OF CONTENTS

SECTION 1: GENERAL CONDITIONS OF BID 31. Proprietary Information Error! Bookmark not defined.2. Enquiries Error! Bookmark not defined.3. Bid Validity Period Error! Bookmark not defined.4. Instructions on submission of Bids Error! Bookmark not defined.5. Preparation of Bid Response Error! Bookmark not defined.6. Supplier Performance Management Error! Bookmark not defined.7. Supplier Development Error! Bookmark not defined.8. IDC’s Rights Error! Bookmark not defined.9. Undertakings by the Bidder Error! Bookmark not defined.10. Reasons for disqualification Error! Bookmark not defined.11. Local Production and Content Error! Bookmark not defined.12. Response Format (Returnable Schedules) Error! Bookmark not defined.13. Evaluation Criteria and Weightings Error! Bookmark not defined.SECTION 2: FUNCTIONAL REQUIREMENTS SPECIFICATION 121. Special instructions to bidders 132. Background Information 133. Objectives 164 Scope of Work 174. Deliverables 195 Project Timelines 206 Technical Evaluation Criteria 21SECTION 3: PRICE PROPOSAL 25SECTION 4: ANNEXURES 30


SECTION 1: GENERAL CONDITIONS OF BID

1. Proprietary Information

Industrial Development Corporation of SA Ltd (IDC) considers this Request for Proposal(RFP) and all related information, either written or verbal, which is provided to therespondent, to be proprietary to IDC. It shall be kept confidential by the respondent and itsofficers, employees, agents and representatives. The respondent shall not disclose,publish, or advertise this RFP or related information to any third party without the priorwritten consent of IDC.

2. Enquiries

2.1 All communication and attempts to solicit information of any kind relative to this RFPshould be channelled in writing to:

Name: Ms Shirley MampuruTelephone Number: Office:+27 11 269 3583Fax Number: +27 11 269 3116Email address: [email protected]

2.2 Enquiries in relation to this RFP will not be entertained after 16h00 on 13 July 2015.

2.3 The enquiries will be consolidated and IDC will issue one response and such response willbe posted, within two days after the last day of enquiries, onto the IDC website(www.idc.co.za) under tenders i.e. next to the same RFP document.

2.4 The IDC may respond to any enquiry in its absolute discretion and the bidderacknowledges that it will have no claim against the IDC on the basis that its bid wasdisadvantaged by lack of information, or inability to resolve ambiguities.

3. Bid Validity Period

Responses to this RFP received from bidders will be valid for a period of 120 dayscounted from the bid closing date.

4. Instructions on submission of Bids

4.1 Bids should be submitted in duplicate (2 hard copies) and one electronic copy (on CD)in PDF format all bound in a sealed envelope endorsed, T14/07/15: Request forproposal to explore possible solutions to improve the productivity andcompetitiveness of Furntech graduates and small furniture manufactures acrossthe country. The sealed envelope must be placed in the bid box at the Main Receptionarea of the IDC Building, 19 Fredman Drive Sandton by no later than 12:00 noon onMonday, 20 July 2015

4.2 Bids must be submitted in the prescribed response format, herein reflected asResponse Format.

4.3 The bid closing date, bidder name and the return address must also be endorsed onthe envelope.

4.4 If a courier service company is being used for delivery of the bid response, the biddescription must be endorsed on the delivery note/courier packaging and the courier

must ensure that documents are placed / deposited into the bid box. The IDC will notbe held responsible for any delays where bid documents are handed to the IDCReceptionist.

4.5 No bid response received by telegram, telex, email, facsimile or similar medium will beconsidered.

4.6 Where a bid response is not in the bid box at the time of the bid closing, such a biddocument will be regarded as a late bid. It is the IDC’s policy not to consider latebids for tender evaluation.

4.7 Amended bids may be sent in an envelope marked “Amendment to bid” and should beplaced in the bid box before the closing time.

5. Preparation of Bid Response

5.1 All the documentation submitted in response to this RFP must be in English.

5.2 The bidder is responsible for all the costs that it shall incur related to the preparationand submission of the bid document.

5.3 Bids submitted by bidders which are, or are comprised of companies must be signed by aperson or persons duly authorised thereto by a resolution of the applicable Board ofDirectors, a copy of which Resolution, duly certified, must be submitted with the bid.

5.4 The bidder should check the numbers of the pages of its bid to satisfy itself that noneare missing or duplicated. No liability will be accepted by IDC in regard to anythingarising from the fact that pages of a bid are missing or duplicated.

5.5 A list of all references (minimum of 3, as per the Functional Evaluation Criteria set outin section 2 of the RFP) must be included in the bid response.

5.6 A valid tax clearance certificate must be included in the bid response, or proof ofapplication endorsed by SARS in this regard.

5.7 A copy(s) of valid and current certificates from the professional organizations/ bodiesthat the bidder is affiliated to or a member of, must be included in the bid response.

6. Supplier Performance ManagementSupplier Performance Management is viewed by the IDC as a critical component inensuring value for money acquisition and good supplier relations between the IDC and allits suppliers.

The successful bidder shall upon receipt of written notification of an award, be required toconclude a Service Level Agreement (SLA) with the IDC, which will form an integral part ofthe supply agreement. The SLA will serve as a tool to measure, monitor and assess thesupplier‘s performance and ensure effective delivery of service, quality and value-add toIDC’s business.

Successful bidders will be required to comply with the above condition, and also provide ascorecard on how their product / service offering is being measured to achieve theobjectives of this condition.

7. Supplier DevelopmentThe IDC promotes enterprise development. In this regard, successful bidders may berequired to mentor SMMEs and/ or Youth-Owned businesses. The implications of sucharrangement will be subject to negotiations between the IDC and the successful bidder.

8. IDC’s Rights

8.1 The IDC is entitled to amend any bid conditions, bid validity period, RFP specifications,or extend the bid closing date, all before the bid closing date. All bidders, to whom theRFP documents have been issued and where the IDC have record of such bidders,may be advised in writing of such amendments in good time and any such changes willalso be posted on the IDC’s website under the relevant tender information. Allprospective bidders should therefore ensure that they visit the website regularly andbefore they submit their bid response to ensure that they are kept updated on anyamendments in this regard.

8.2 The IDC reserves the right not to accept the lowest priced bid or any bid in part or inwhole. It normally awards the contract to the bidder who proves to be fully capable ofhandling the contract and whose bid is functionally acceptable and/or financiallyadvantageous to the IDC.

8.3 The IDC reserves the right to award this bid as a whole or in part.

8.4 The IDC reserves the right to conduct site visits at bidder’s corporate offices and / or atclient sites if so required.

8.5 The IDC reserves the right to consider the guidelines and prescribed hourlyremuneration rates for consultants as provided in the National Treasury Instruction01 of 2013/2014: Cost Containment Measures, where relevant.

8.6 The IDC reserves the right to request all relevant information, agreements and otherdocuments to verify information supplied in the bid response. The bidder hereby givesconsent to the IDC to conduct background checks on the bidding entity and any of itsdirectors / trustees / shareholders / members.

9. Undertakings by the Bidder

9.1 By submitting a bid in response to the RFP, the bidder will be taken to offer to render allor any of the services described in the bid response submitted by it to the IDC on theterms and conditions and in accordance with the specifications stipulated in this RFPdocument.

9.2 The bidder shall prepare for a possible presentation should IDC require such and thebidder shall be notified thereof in good time before the actual presentation date. Suchpresentation may include a practical demonstration of products or services as called forin this RFP.

9.3 The bidder agrees that the offer contained in its bid shall remain binding upon him/herand receptive for acceptance by the IDC during the bid validity period indicated in theRFP and calculated from the bid closing hour and date such offer and its acceptanceshall be subject to the terms and conditions contained in this RFP document read withthe bid.

9.4 The bidder furthermore confirms that he/she has satisfied himself/herself as to thecorrectness and validity of his/her bid response; that the price(s) and rate(s) quotedcover all the work/item(s) specified in the bid response documents; and that the price(s)and rate(s) cover all his/her obligations under a resulting contract for the servicescontemplated in this RFP; and that he/she accepts that any mistakes regarding price(s)and calculations will be at his/her risk.

9.5 The successful bidder accepts full responsibility for the proper execution and fulfilmentof all obligations and conditions devolving on him/her under the supply agreement andSLA to be concluded with IDC, as the principal(s) liable for the due fulfilment of suchcontract.

9.6 The bidder accepts that all costs incurred in the preparation, presentation anddemonstration of the solution offered by it shall be for the account of the bidder. Allsupporting documentation and manuals submitted with its bid will become IDC propertyunless otherwise stated by the bidder/s at the time of submission.

9.7 The bidder warrants that the goods proposed under this RFP are new, unused, of themost recent or current models; and that they incorporate all recent improvements indesign and materials unless provided otherwise in this RFP. The bidder furtherwarrants that all goods proposed under this RFP shall have no defect, arising fromdesign, materials, or workmanship (except when the design and/or material is requiredby the RFP’s specifications) or from any act or omission of the bidder, that maydevelop under normal use of the proposed goods in the conditions prevailing in SouthAfrica.

10. Reasons for disqualification

10.1 The IDC reserves the right to disqualify any bidder which does any one or more of thefollowing, and such disqualification may take place without prior notice to the offendingbidder, however the bidder will be notified in writing of such disqualification:

10.1.1 bidders who do not submit a valid and original Tax Clearance Certificate or proofof application of such as endorsed by SARS on the closing date and time ofthe bid;

10.1.2 bidders who submit incomplete information and documentation according to therequirements of this RFP document;

10.1.3 bidders who submit information that is fraudulent, factually untrue or inaccurateinformation;

10.1.4 bidders who receive information not available to other potential bidders throughfraudulent means;

10.1.5 bidders who do not comply with mandatory requirements if stipulated in theRFP document;

10.1.6 bidders who fail to attend a compulsory briefing session if stipulated in the tenderadvert and/ or in this RFP document; and/or

10.1.7 bidders who fail to comply with FICA requirements.

11. Local Production and Content

The IDC promotes Local Production and Content. In the case of designated sectors, onlylocally produced goods, services or works or locally manufactured goods, with a stipulated

minimum threshold for local production and content will be considered. IDC reserves theright at its sole discretion to set minimum thresholds for sectors which may not have beendeclared as designated sectors by the dti in an effort to stimulate local production andcontent where relevant.

12. Response Format (Returnable Schedules)

Bidders shall submit their bid responses in accordance with the response format specifiedbelow (each schedule must be clearly marked):

12.1 Cover Page: (the cover page must clearly indicate the RFP reference number, biddescription and the bidder’s name)

12.2 Schedule 1:

12.2.1 Executive Summary (explaining how you understand the requirements of thisRFP and the summary of your proposed solution)

12.2.2 Annexure 1 of this RFP document (duly completed and signed)

12.3 Schedule 2

12.3.1 Original and valid Tax Clearance Certificate(s) (TCC);

12.3.2 Originally certified copies of bidder’s CIPC company registration documentslisting all members with percentages, in case of a CC.

12.3.3 Originally certified copy of ID document for the Company Representative

12.3.4 Annexure 2 of this RFP document (duly completed and signed);



12.3.7 B-BBEE verification certificate indicating the contribution level of the biddingentity

12.3.8 For Exempted Micro Enterprises (EME) with an annual turnover less than R10million, a sworn affidavit confirming the annual total revenue and level of blackownership. An EME that has at least 75% black beneficiaries qualifies forelevation to "Level One Contributor” and an EME that has at least 51% blackbeneficiaries qualifies for elevation to "Level Two Contributor”. Anymisrepresentation in terms of the declaration constitutes a criminal offence as setout in the B-BBEE Act as amended.

Note: If a bidder is a Consortium, Joint Venture or Prime Contractor withSubcontractor(s), the documents listed above (12.3.1-12.3.7) must besubmitted for each Consortium/ JV member or Prime Contractor andSubcontractor(s).

12.3.9 Copy of Joint Venture/ Consortium/ Subcontracting Agreement duly signed by allparties (if applicable)

12.4 Schedule 3:

12.4.1 Response to Section 2 of this document, in line with the format indicated in thisRFP document.

12.4.2 Annexure 3 of this RFP document, duly completed and signed

12.4.3 Annexure 4 of this RFP document, duly completed and signed (if applicable)

12.5 Schedule 4: Price Proposal (response to Section 3 of this RFP document) (Must besubmitted in a separate envelope within the sealed envelope of the bid)

12.6 One (1) CD with all Schedules listed above, also included in the sealed envelopeof the bid

13. Evaluation Criteria and Weightings

Bids shall be evaluated in terms of the following process:

13.1 Phase 1: Initial Screening Process: During this phase, bid responses will be reviewedfor purposes of assessing compliance with RFP requirements including the general bidconditions, which requirements include the following:

Submission of a valid Tax Clearance Certificate as referenced in 12.3.1

above

Submission of Company Registration Forms as referenced 12.3.2 above

Submission of ID copy for the Company Representative as referenced in

12.3.3 above

BEE Status Certification as referenced in 12.3.7 & 12.3.8 above

Completion of all Standard Bidding Documents and other requirements, as

reflected in this RFP, which covers the following:

Section 2: Statement of compliance with the Functional Evaluation

Criteria for this RFP

Section 3: Cost Proposal and Price Declaration Form

Annexure 1: Acceptance of Bid Conditions

Annexure 2: Supply Chain Management Questionnaire

Annexure 3: Bidders Experience & Project Team

Annexure 4: Declaration Form for Local Content

Annexure 5: Declaration of Interest

Annexure 6: Shareholders’ Information/ Group Structure

Failure to comply with the requirements assessed in Phase 1 (compliance), may lead to

disqualification of bids.

13.2 Phase 2: Technical/ Functionality Evaluation

Bid responses will be evaluated in accordance with the Functional criteria as follows:

13.2.1 Mandatory Functional/ Technical Requirements

All bid responses that do not meet the Mandatory Functional Requirements will bedisqualified, and will not be considered for further evaluation on the Non-Mandatory Functional Requirements. The Mandatory Functional Requirementsare stated in section 2 of this RFP document.

Failure to comply with the Mandatory Functional Requirements assessed in phase2 may lead to disqualification of bids.

13.2.2 Other Functional/ Technical Requirements

With regard to the other Functional Requirements, the following criteria (set out inmore detail in section 2 of this RFP document) and the associated weightings willbe applicable:

ELEMENT WEIGHT

Bidder’s Relevant Experience 15

Bidder’s Proposed Methodology 20

Experience, Skills and Qualifications of the key personnel of the auditTeam 30

Skills Transfer 5

Project Plan 5

Presentations 25TOTAL 100%

Note:

The bidder must score a total of at least 52.50 points on experience of the bidder and the team,proposed methodology, project plan and skills transfer in order to qualify for the presentations.

The minimum qualifying score for functionality is 70%. All bids that fail to achieve the minimumqualifying score on functionality shall not be considered for further evaluation on Price and BEE,in Phase 3.

13.3 Phase 3: Preference Point System

All bids that achieve the minimum qualifying score for Functionality (acceptable bids)will be evaluated further in terms of the preference point system, as follows:

CRITERIA POINTS

Price 90

B-BBEE 10

TOTAL 100 points

14. Promotion of Emerging Black owned Service Providers

It is the IDC’s objective to promote transformation across all industries and/ or sectors ofthe South African economy and as such, bidders are encouraged to partner with a blackowned entity (being 50%+1 black owned and controlled). Such partnership may includethe formation of a Joint Venture and/ or subcontracting agreement etc., where a portion ofthe work under this tender would be undertaken by black owned entities. To give effect tothis requirement, bidders are required to submit a partnership / subcontracting proposaldetailing the portion of work to be outsourced, level of involvement of the black ownedpartner and where relevant, submit a consolidated B-BBEE scorecard in-line with theprovisions of the PPPFA Regulations which will be considered as part of the B-BBEEscoring listed in 13.3.

SECTION 2: FUNCTIONAL REQUIREMENTS SPECIFICATION

SECTION 2: FUNCTIONAL REQUIREMENTS SPECIFICATION

1. Special instructions to bidders1.1 Should a bidder have reason to believe that the Functional Requirements are not open

/ fair and/or are written for a particular brand or product or service provider; the biddermust notify IDC Procurement within five (5) days after publication of the RFP.

1.2 Bidders shall provide full and accurate answers to the questions posed in this RFPdocument, and, where required explicitly state either “Comply/Not Comply” regardingcompliance with the requirements. Bidders must substantiate their response to allquestions, including full details on how their proposal/solution will address specificfunctional/ technical requirements; failure to substantiate may lead to the bidder beingdisqualified. All documents as indicated must be supplied as part of the bid response.

1.3 Failure to comply with Mandatory Requirements may lead to the bidder beingdisqualified.

2. Background Information2.1 Industrial Development and Policy Development Programme Overview

The main purpose of Industrial Development Programme of the Department of Trade andIndustry designs and implement policies, strategies and programmes to develop themanufacturing and related sectors of the economy that contribute to the direct and indirectcreation of decent jobs, add value and enhance competitiveness in both domestic andexport market . Industrial Competitiveness is one of the sub programmes that developspolicies, strategies and programmes to strengthen the ability of manufacturing and othervalue-adding sectors to create decent jobs and increase value-addition andcompetitiveness in domestic and export markets, as set out in the annual three-yearrolling IPAP. The latest Industrial Policy Action Plan (IPAP) 2014/15 - 2016/17 is one ofthe key pillars of this broader approach. It builds on the National Industrial PolicyFramework (NIPF) and represents the sixth annual iteration of the first IPAP launched inthe 2007/08 financial year.

Each year, the dti launches a revised three-year rolling IPAP with a 10-year outlook in acontext of rapid economic change and significant global uncertainty. This has proved to bea robust formula, which allows continual scaling up of interventions and sufficient flexibilityto respond to change. Just as many of today's successful industrial firms have built uptheir capacities through a process of learning by doing, the latest version of IPAP clearlydemonstrates the dti's commitment to constantly refine and improve on the design andimplementation of its industrial policy.

IPAP 2014/15- 2016/17 is the product of careful analysis of the latest trends in the globaland regional industrial policy space and a result of the continuous search for optimalpolicy coherence within Government, between government departments and across a fullrange of stakeholders and social partners. The IPAP document identifies the Forestry andForest products industry as a sector that contributes to rural development, povertyalleviation and employment creation.

2.2 Sector Development Programme

The customised Sector programmes develops and implements high impact sectorstrategies focused on manufacturing and other value-adding sectors to create decent jobsand increase value-addition and competitiveness in domestic and export markets, as setout in the annual three-year rolling IPAP. In 2010/11, the Clothing and TextilesCompetitiveness Programme (CTCP) was developed to introduce an important productionand competitiveness enhancement incentive, which encourages production and job-creation activities more directly. By the end of September 2013, 728 enterprises had beensupported and approximately 62 350 jobs saved. Transfer payments are made to variouspublic entities, including the IDC for the Clothing and Textiles Production Incentive;customised-sector programmes at the Council for Scientific and Industrial Research forthe Aerospace Industry Programme; the National Foundry Technology Network; theIntsimbi National Tooling Initiative; and the Centurion Aerospace

Similarly the forestry sector has been identified as one of the sectors that has potential tocreate jobs and presents great opportunities for growth through beneficiation and valueadding to the products before exporting.

2.3 South African Furniture Industry

The South African Furniture Industry is an important sector in the South African economybeing one of the most labour-intensive industries and with a potential to contribute to thereduction in unemployment, increase in exports and the development of the Small,Medium and Micro Enterprises (SMME). It can contribute to geographic spread ofeconomic activity since products can be produced in rural areas with relatively minimalinvestment. Most of the furniture manufacturers are located in KwaZulu Natal (KZN),Western Cape (WC), and Gauteng provinces.

The industry’s levels of competitiveness have been declining over the years. This hasbeen attributed to skills shortage, declining investment in capital equipment and researchand development. This has resulted in the closure of some companies and the loss ofjobs. Competitiveness can be enhanced by development and introduction of new productsin the sector, the use of new or alternative materials, especially those available locally,and introduction of new technology. The industry lost its competitiveness to othercountries with better support, allowing other countries not only to increase their globalmarket shares, but to more importantly increase their market share in South Africa.

Over the past five years, the South African exports have seen a steady decline, with thevalue of imports having surpassed exports. This means that the furniture industry has notkept pace with the growth in worldwide furniture trade and has steadily been losing itsmarket share of the global furniture manufacturing. To this end dti management approvedthe draft strategy for the development of the furniture industry in South Africa. Thestrategy document recognizes the challenges and opportunities for the industry.

In dealing with the above challenges, the furniture strategy proposes that programmes bedeveloped to support the long term sustainability and competitiveness of the industry. Theimplementation of programmes will address issues around SME Development, RawMaterial Supply, and Skills Development. The Fibre Processing and Manufacturing(FP&M) Seta and Furntech are well positioned to deal with skills shortages in the sector.Through the skill levy that companies pay, manufacturers are able to access training

through FP&M Seta. Furnetch works on an incubation model, where companies areincubated in their facilities for a period of 3 years. Furntech provide training and support toaspiring and existing furniture manufacturers', in a protected incubation environment, toensure business survival, especially at the start-up stage. The assistance offered includesall aspects of starting up and developing their companies into sustainable businesses. Themodel offers key industry skills training and facilitate market access for productsmanufactured by incubates, with the aim of them exiting the incubator as fully fledgedbusinesses.

2.4 Problem Statement

The furniture industry has been identified to have the potential to unlock economic growth.It is therefore important that proper attention and consultative interventions be afforded tothe Furniture Industry so as to enhance growth and investment of this sub sector.

Furntech centres play a significant role in addressing the skills shortages in the FurnitureIndustry. The biggest challenge so far with Furntech incubates has been the dependencylevel that seems to be created by the program. In most cases trainee failed to maintaintheir business outside the incubator, and once access to the machinery in the workshopstops. According to Furntech statistics, an average of 300 individuals has been trainedeach financial year since its inception in 2000. However, very few remain in business andthe industry once they have exited the incubation system. The major challenges faced bythe graduates include failure to access high tech capital due to the level of theirbusinesses and high overheads costs and failure to secure sustainable markets to growtheir businesses.

According to Furntech statistics, over 4700 individuals have been trained and incubatedsince Furntech’s inception in 2000. The current situation with incubates present anopportunity to further capacitate and organise trained manufactures, and thus improveproductivity and competitiveness. These individuals or firms will be concentrated in thevicinity of the Furntech centres in KZN, Western Cape, Gauteng, Mpumalanga, and theEastern Cape.

It is believed that these trained individuals and businesses developed from the incubationprocess can play a vital role in improving the industry competitiveness and growing theeconomy.

The purpose of this exercise is to appoint a service provider to provide the following:

Explore and recommend at least four (04) options to improve the productivity andcompetitiveness of Furntech graduates and small furniture manufactures acrossthe country;

Conduct a feasibility study on the recommended option;

Depending on the positive results of the feasibility study, develop a bankablebusiness case on the recommended option;

Develop implementation/ Action Plan for the recommended option;

3. Objectives3.1 The overall objective of this project is to explore possible options/ solutions to improve

the productivity and competitiveness of Furntech graduates and small furnituremanufactures across the country; conduct a feasibility study and develop acomprehensive business plan on the recommended option in consultation with keystakeholders, and also develop its implementation framework. Proposals thus have todetail appropriate and effective ways in which to present an accurate analysis ofinformation pertinent to achieving the specific objectives of the project.

3.2 Specific Objectives are as follows:3.2.1 Identification of possible options

To develop a database of Furntech incubates, and other furniture manufacturers inthe Furntech centres vicinity;

Provide a profile of the incubates in each province;

Identify and analyse available options that will improve the productivity andcompetitiveness of Furntech graduates and small furniture manufactures acrossthe country. These options should be consistent with government policies includingthe economic and financial, institutional and management, environmental andsociocultural framework.

Provide a comparative report on available options.

3.2.2 Feasibility StudyA detailed background research which must address the following specific issues A validation of the relevance of the recommended option in addressing the existing

problems in furniture manufacturing industry in South Africa including theeconomic, social and environmental impact of the project;

A detailed assessment of the supply chain, technical, economic and financial,institutional and managerial, environmental and socio-cultural feasibility of therecommended option.

To identify key challenges and gaps, and recommend innovative mechanisms ofaddressing them.

A detailed assessment of potential sustainability of the project (recommendedoption) results after completion,

To identify best practice models in the development, implementation andmonitoring of similar intervention in a similar environment.

Forge strategic partnerships with government and respective municipalities andother relevant agencies to solicit support for the recommended.

3.2.3 Business PlanA detailed plan for the project activities, including indicators for project objectives andresults, design specifications, required resources, the institutional structure forimplementation stipulating the responsibilities of various bodies, project timing/phasing,estimated costs and a logical framework planning matrix.The business plan should include amongst others: Developing a strategic framework and support measures, appropriate technology,

technical matters and technical assistance; environmental protection; socio-culturaland gender aspects; institutional and management capacity and arrangements,public and private; economic and financial aspects.

Identification of appropriate private and public sector roles, and outline keystrategies and actions necessary to give effect to the above.

3.2.4 Implementation PlanThe implementation plan should outline recommendations for the next steps and any

further actions necessary to secure project financing and implementation and, possibly,draft tender documents for the selection of consultancy services that may be required atimplementation stage.Should the recommended option require physical construction then the following shouldbe included in the implementation plan. Details of engineering designs, technical specifications and tender documents for

any physical works and supplies that will be required in executing the project; A draft Financing Proposal that will detail the viability of the proposed project.

4. Scope of Work4.1 Specific Activities and Outputs

The Service provider will be expected to perform the following:

4.1.1 Phase 1: Identification of possible options

Develop a database of Furntech incubates, and other furniture manufacturersin the Furntech centres vicinity;

Provide a profile of the incubates in each province;

Identify and analyse at least four (04) available options that will improve theproductivity and competitiveness of Furntech graduates and small furnituremanufactures across the country. These options should be consistent withgovernment policies including the economic and financial, institutional andmanagement, environmental and sociocultural framework.

Provide a comparative report on available options.

Note: The successful bidder will only proceed to the next Phase i.e. feasibility study,when advised by the IDC after the review of the recommended options. The options mustbe acceptable to the IDC.

4.1.2 Phase 2: Feasibility Study

The successful bidder will required to conduct a feasibility study on onerecommended/ selected option. The study will entail the following:

Undertake literature review on existing furniture manufacturing industry.Synthesise information, screen for adequacy and identify gaps. Review therecommended model in other industries in South Africa, rest of Africa andglobally.

Establish the relevance of the recommended option as determined by: itscoherence with country’s macro-economic environment, and the economic,social or environmental sector demanding value added wood productsintervention; the consistency with the overall national/regional developmentobjectives specified in the Industrial Development Framework, Industrial PolicyAction plan(IPAP) and NDP;

Identify all stakeholders affected by or involved in the proposed project; andoutlined their roles thereof.

Identify other interventions or priorities by any national organisation orgovernment which may be affected by the proposed intervention;

Identify key challenges and gaps, and recommend innovative mechanisms ofaddressing them.

Identify best practice models in the development, implementation andmonitoring of similar interventions in a similar environment.

Develop detailed ownership models and scenarios. Conduct wider consultation with various relevant key stakeholders in relevant

provinces, including private sector, government departments, municipalities,organised labour and tertiary institutions.

Conduct a detailed assessment of the supply chain, technical, economic andfinancial, institutional and managerial requirements in furniture manufacturing.

Conduct stakeholder workshops during the feasibility.

Note: The successful bidder will only proceed to the next Phase i.e. development of aBusiness Case and implementation plan when advised by the IDC after the review of thefeasibility report and there is confirmation of positive results. The options must beacceptable to the IDC.

4.1.3 Phase 3: Business Case

Conduct wider consultation with various relevant key stakeholders in relevantprovinces, including private sector, government departments, municipalities,organised labour and tertiary institutions in developing a business case for therecommended solution to improve competitiveness for the incubates and orsmall manufacturers.

Propose solutions to build capacity on the proposed model. Provide financial projections to determine the viability of the proposed

recommended model

The consultants will give a detailed recommendation for the conceptualbusiness model to be structured as follows:

Overall objectives: Why is the project important to the target groups andbeneficiaries, the region and the Government? What is the desiredeconomic, social and environmental development/impact?

Project results: What products and services will the project deliver tothe target groups and beneficiaries? What assumptions are required toachieve the project purpose?

Project activities: What is the precise scope of activities to beundertaken and what are the associated assumptions for achieving theproject results. The project purpose and results should be measurableby indicators, and project activities should be quantified whereverpossible.

Strengthen appropriate infrastructure support to the recommended option. Build an effective industrial, trade and productive capacity needed to ensure

optimisation of furniture production.

Conduct a risk analysis for the recommended option. Conduct stakeholder workshops during the development of the business case.

4.1.4 Phase 4: Compiling Implementation Plan

The implementation plan should outline recommendations for the next steps and anyfurther actions necessary to secure project financing and implementation and, possibly,draft tender documents for the selection of consultancy services that may be required atimplementation stage.Should the recommended option require physical construction then the following shouldbe included in the implementation plan. Details of engineering designs, technical specifications and tender documents for

any physical works and supplies that will be required in executing the project; A draft Financing Proposal that will detail the viability of the proposed project.

5. Deliverables5.1 The following are expected deliverables in order to meet the objectives of this initiative:

5.1.1 Project Inception Report

This report will set out the alternative technical solutions for the project in sufficientdetail to enable an informed decision to be made on the preferred solution.Inception report detailing all deliverables of the project including a work plan ofactivities to be achieved during the contract period.

Service provider required to commence by drafting the inception reportdetailing the overall approach, methodology and expected timeframe inwhich each phase of the project activities costs will be completed.

The inception report will serve as a discussion document and will be thebasis upon which the detailed approach to the project is agreed.

The inception report is an interim deliverable that is expected to becompleted in two weeks from the date of appointment of the serviceprovider.

5.1.2 Phase 1: Identification of possible options

The report must be detailed and comprehensively cover all the activities undertaken inidentifying all the available options (i.e. at least a minimum of four (04) options) as outlinedin paragraph 4.1.1 above.

5.1.3 Phase 2: Feasibility Study Report.

The study conclusions should be presented in the feasibility study report. The report mustbe detailed and comprehensively cover all the objectives and scope of work outlined inparagraph 4.1.2 above.

The appendices must be submitted as follows:

i. Study methodology/work plan (2-4 pages).ii. Itinerary (1-2 pages).iii. List of persons/organisations consulted (1-2 pages).iv. Literature and documentation consulted (1-2 pages).

5.1.4 Phase 3: Business PlanA detailed and comprehensive Business Plan that covers all the objectives andscope of work outlined in paragraph 4.1.3 above.

5.1.5 Phase 4: Implementation/ Action PlanA detailed implementation plan that covers the objectives and scope of workoutlined in paragraph 4.1.4 above.

5.1.6 Phase 5: Close Out Report

6. Project TimelinesThe project should be completed within twelve (12) months from the date of signing theservice level agreement.

Activities are as follows:Activity TimelineIdentification of possible options 1 monthFeasibility Study 3 monthsBusiness Case and Implementation Plan 8 months

7. Technical Evaluation Criteria

7.1 Non-Mandatory Technical Requirements

The bidder must indicate its compliance / non-compliance to the requirements and shouldsubstantiate its response in the space provided below. If more space is required to justifycompliance, please ensure that the substantiation is clearly cross-referenced to the relevantrequirement.

7.1.1 BIDDER’S EXPERIENCE Comply PartiallyComply

NotComply

The bidder must demonstrate relevant experience working in SouthAfrican furniture manufacturing industry.

The bidder must provide two (02) relevant contactable references ofresearch /studies the bidder conducted within the South Africanfurniture manufacturing industry in the past 5 (five) years. Pleaserefer to Table (a) of Annexure 3 of this document for the format inwhich the required information must be provided.

Note: The following scoring matrix will be used to evaluate thesecriteria.

One (1) relevant references in the past five years = 2 points

Two (2) relevant references in the past five years = 3 points

Three (3 ) to Four (04) references in the past five years = 4points

Five (5) References and above in the past five years = 5points

Substantiate / Comments


NotComply

The bidder must demonstrate relevant experience in conductingfeasibility studies in similar work relating to this project.

The bidder must provide three (03) relevant contactable references ofsimilar work done in the past 5 (five) years. Please refer to Table (b)of Annexure 3 of this document for the format in which the requiredinformation must be provided.








NotComply

The bidder must demonstrate relevant experience in the developmentof Business Cases in similar work relating to this project.

The bidder must provide two (02) relevant contactable references ofsimilar work done in the past 5 (five) years. Please refer to Table (c)of Annexure 3 of this document for the format in which the requiredinformation must be provided.







7.1.4 BIDDER’S PROPOSED METHODOLOGY Comply PartiallyComply

NotComply

The bidder must provide a detailed proposal of the methodology/approach to be used to carry out the scope of work outlined aboveand clearly demonstrating how the objectives of the study will beachieved. The proposal must outline, amongst other things, thefollowing:

Qualitative and quantitative techniques to be used Desktop and first hand research approach Stakeholder facilitation and engagement model


7.1.5 QUALIFICATIONS AND SKILLS OF KEY PERSONNEL Comply PartiallyComply

NotComply

The bidder’s key personnel of the proposed team must have relevantqualifications, skills and experience.

Team Leader:The incumbent must be a Business Development Specialistwith the following key qualification and experience: Post graduate qualification in Economics/

Development Economics and related disciplines; Strong leadership qualities and the ability to

communicate effectively; Minimum 7 years practical and technical experience in

macroeconomic policy development; Knowledge of Forestry Beneficiation Industry, Local

Economic Development, Industrial Sectors andclusters and Enterprise development issues;

High attention to detail and ability to prioritiseworkload, multi-task and work to tight deadlines;

Strong understanding of provincial macroeconomicpolicies;

Knowledge of public sector procurement policies;

Technical competency of the project team: Experience and knowledge of enterprise development

specialist Strategy development and project experience; policy

analysis and evaluation; A thorough understanding of regional, national and global

economies and relevance in natural resourcebeneficiation and industrial policy development;

A thorough understanding of furniture manufacturingindustry backward and forward linkages;

Experience in programme strategy or policy impactassessments;

Research methodologies and analysis skills; Experience in policy development and Strategic

The bidders must submit, as part of its proposal, the following: The structure and composition of the proposed team, clearly

outlining the main disciplines/ specialties of this project andthe key personnel responsible for each specialty. Pleaserefer to Table (b) Annexure 3 of this document for the formatin which the required information must be provided.

CVs of the key personnel; and the CVs must clearly highlightqualifications, areas of experience/ competence relevant tothe tasks and objectives of this project as outlined above.


7.1.6 SKILLS TRANSFER Comply PartiallyComply

NotComply

The bidder must provide a skills transfer plan that will articulate howskills transfer will take place with the dti over the period of the projectto build capacity in the automotive sector and the plan must alsodemonstrate the degree to which its core team is made up ofHistorically Disadvantaged South African’s (HDSAs) so as to benefitand build capability in respect to automotive industry.


7.1.7 PROJECT PLAN Comply PartiallyComply

NotComply

The bidder must provide a detailed project plan to undertake thestudy; the plan must indicate key activities, timelines, milestones/deliverables.


7.1.8. Practical Evaluation: Presentations

All shortlisted bidders will be invited for presentations to the IDC Panel. The bidders might be giventwo days’ notice for the presentations.

Bidders will be required to present on, but not limited to, the following:

Interpretation of the ToR

Proposed research methodology.

Bidder’s Relevant Experience

Experience, Skills and Qualifications of the key personnel

Skills Transfer

SECTION 3: PRICE PROPOSAL

SECTION 3: Cost Proposal

1 Please indicate your total bid price here: R………………………………… (compulsory)2 NOTE: All prices must be VAT exclusive and must be quoted in South African Rand (ZAR).3 Are the rates quoted firm for the full period of the contract?

Important: If not firm for the full period, provide details of the basis on which price adjustments shall beapplied e.g. CPI etc.

4 All additional costs associated the bidder’s offer must be clearly specified and included in the TotalBid Price.

5Is the proposed bid price linked to the exchange rate? Yes No

If yes, the bidder must indicate CLEARLY which portion of the bid price is linked to the exchangerate:

6Payments will be linked to specified deliverables after such deliverables havebeen approved by the IDC. Payments will be made within 30 days from date ofinvoice.

Comply Not Comply

7

The IDC reserves the right to consider the guidelines on consultancy rates as setout in the National Treasury Instruction 01 of 2013/2014: Cost ContainmentMeasures which took effect from 01 January 2014, where relevant.

The bidder must indicate if their proposed rates are in line with the provisions ofthe referenced National Treasury Instruction: Cost Containment Measures.

Comply Not Comply


8 COSTING MODEL

8.1 Phase 1: Identification of possible options

Activity/ Deliverable Resource(s) Rate/Hour perresource

Numberof hours

Cost

(VAT Excl.)

Disbursements

Sub-Total (A) (VAT Excl.)

Note:

YES NO

Disbursements and any other (additional) costs must be clearly defined (outlining allassumptions) and a detailed breakdown thereof must be provided.

The bidder will only proceed to the next Phase i.e. feasibility study, development of business planand implementation/ action plan when advised by the IDC after the review of the recommendedoptions.

8.2 Phase 2: Feasibility Study

Activity/ Deliverable Resource(s) Rate/Hour perresource

Numberof hours

Cost

(VAT Excl.)

Disbursements

Sub-Total (B) (VAT Excl.)

The bidder will only proceed to the next Phase i.e. development of business plan andimplementation/ action plan when advised by the IDC after the review of the feasibility study

The bidder must clearly outline all the assumptions made in costing of the feasibility study.

8.3 Phase 3: Development of Business Plan

Activity/ Deliverable Resource(s)Rate/Hour per

resource

Number ofhours

Cost

(VAT Excl.)

Disbursements

Sub-Total (C) (VAT Excl.)

8.4 Phase 4: Development of Implementation/ Action Plan

Activity/ Deliverable Resource(s)Rate/Hour perresource

Number ofhours

Cost

(VAT Excl.)

Disbursements

Sub-Total (D) (VAT Excl.)

Note: Disbursements and any other (additional) costs must be clearly defined (outlining allassumptions) and a detailed breakdown thereof must be provided.

TOTAL BID PRICE (A+B+C+D)

9 SUMMARY OF THE PROPOSAL

DESCRITPION BIDDER’S PROPOSAL

Number of resources(personnel)

Identification of possibleoptions

Feasibility Study

Business Plan

Implementation/ Action Plan

Project duration (in hours)


Feasibility Study

Business Plan

Implementation/ Action Plan

Project duration (in months)


Feasibility Study

Business Plan andImplementation/ Action Plan

Commencement Date

Price Declaration FormDear Sir,

Having read through and examined the Request For Proposal (RFP) Document, RFP no. T14/07/15, the

General Conditions, and all other Annexures to the RFP Document, we offer to conduct a feasibility study

to explore possible solutions to improve the productivity and competitiveness of Furntech graduates and

small furniture manufactures across the country to the IDC at the following total amount:

R......................................................................................................................... (Excluding VAT)

In words

R........................................................................................................................ (Excluding VAT)

We confirm that this price covers all activities associated with the service, as called for in the RFP

document. We confirm that IDC will incur no additional costs whatsoever, other than in respect of VAT,

over and above this amount in connection with the provision of this service.

We undertake to hold this offer open for acceptance for a period of 120 days from the date of submission

of offers. We further undertake that upon final acceptance of our offer, we will commence with the

provision of the required service when required to do so by the IDC.

We understand that you are not bound to accept the lowest or any offer, and that we must bear all costs

which we have incurred in connection with preparing and submitting this bid.

We hereby undertake for the period during which this bid remains open for acceptance, not to divulge to

any persons, other than the persons to whom the bid is submitted, any information relating to the

submission of this bid or the details therein except where such is necessary for the submission of this bid.

SIGNED DATE

(Print name of signatory)

Designation

FOR AND ON BEHALF OF: COMPANY NAME

Tel No

Fax No

Cell No

SECTION 4: ANNEXURES


Annexure 1 – Acceptance of Bid Conditions and Bidder’sDetails

Request for Proposal No:

Name of Bidder:

Authorised signatory:

Name of AuthorisedSignatory

Position of AuthorisedSignatory

By signing above the bidder hereby accept full responsibility for the proper execution and fulfilment of allobligations and conditions devolving on him/her under this RFP.

[Note to the Bidder: The Bidder must complete all relevant information set out below.]

BIDDING STRUCTURE

Indicate the type of Bidding Structure by marking with an ‘X’:

Individual Bidder

Joint Venture/ Consortium

Prime Contractor with Sub Contractors

Other

REQUIRED INFORMATION

If Individual Bidder:

Name of Company

Registration Number

Vat registration Number

Contact Person

Telephone Number

Cellphone Number

Fax Number

Email address

Postal Address

Physical Address

If Joint Venture or Consortium, indicate the following for each partner:

Partner 1

Name of Company

Registration Number


Contact Person

Telephone Number

Cellphone Number

Fax Number

Email address

Postal Address

Physical Address

Scope of work and the value as a % of the total value

of the contract

Partner 2

Name of Company

Registration Number


Contact Person

Telephone Number

Cellphone Number

Fax Number

Email address

Postal Address

Physical Address

Scope of work and the value as a % of the total value

of the contract

If bidder is a Prime Contractor using Sub-contractors, indicate the following:

Prime Contractor

Name of Company

Registration Number


Contact Person

Telephone Number

Cellphone Number

Fax Number

Email address

Postal Address

Physical Address

Sub contractors

Name of Company

Company Registration Number


Contact Person

Telephone Number

Cellphone Number

Fax Number

Email address

Postal Address

Physical Address

Subcontracted work as a % of the total value of the

contract

- 34 -

Annexure 2 - Supply chain management practices questionnaireRequest for Proposal No:

Name of Bidder:


[Note to the Respondent: the Respondent must complete the information set out below. If the Respondentrequires more space than is provided below it must prepare a document in substantially the same format settingout all the information referred to below and return it with Returnable Schedule 2.]

The bidder must complete the following questionnaire.

Bidder’s past supply chain management practices:

Item Question Yes No

3.1 Is the Bidder or any of its directors listed on the South African NationalTreasury’s database as companies or persons prohibited from doing businesswith the public sector?

(Companies or persons who are listed on this database were informed inwriting of this restriction by the South African National Treasury after the audialteram partem rule was applied).

Yes No

If so, provide particulars:

3.2 Is the Bidder or any of its directors listed on the Register for Bid Defaulters interms of section 29 of the Prevention and Combating of Corrupt Activities ActNo 12 of 2004?To access this Register enter the National Treasury’s website,www.treasury.gov.za , click on the icon “Register for Bid Defaulters” or submityour written request for a hard copy of the Register to facsimile number+27123265445.

Yes No


3.3 Was the Bidder or any of its directors convicted by a court of law (including acourt outside of the Republic of South Africa) for fraud or corruption during thepast five years?

Yes No

- 35 -

Item Question Yes No


3.4 Does the Bidder relate to any IDC employee or part of IDC current or paststaff (employee) establishment?

Yes No


3.5 Was any contract between the Bidder and any organ of state (within the Republic of SouthAfrica or within any foreign territory) terminated during the past five years on account offailure to perform on or comply with the contract?


I, _____________________________ (print name) hereby certify that the information, facts and representationsare correct and that I am duly authorized to sign on behalf of the company.

Name of Company: __________________________________________________________

Company Registration Number: _________________________________________________

Company VAT Registration Number: _____________________________________________

________________________________

Signature

________________________________

Date

- 36 -

Annexure 3: Response Format for Section 2Bidder’s Experience and the proposed Project TeamRequest for Proposal No:

Name of Bidder:


[Note to the Bidder: The bidder must complete the information set out below in response to the requirements stated in Section 2 of this bid document. If the bidder requiresmore space than is provided below it must prepare a document in substantially the same format setting out all the information referred to below and return it with thisReturnable Schedule 3.]

The bidder must provide the following information:

Table (a) Details of the bidder's current and experience working in South African furniture manufacturing industry: (please refer to par 7.1.1 of Section 2 of this RFPdocument):

Client’ Name Project description Project CostProject period

(Start and End Dates)Description of service performed and

extent of Bidder's responsibilitiesName, title and telephone

contact of client

- 37 -

Table (b) Details of the bidder's current and experience working in conducting feasibility studies in similar work relating to this project. (please refer to par 7.1.2 ofSection 2 of this RFP document):




contact of client

Table (c) Details of the bidder's current and experience in the development of Business Cases in similar work relating to this project: (please refer to par 7.1.3 ofSection 2 of this RFP document):




contact of client

- 38 -

Table (d) Details of the key personnel of the bidders’ proposed team:

Name Position Role / Duties in this ProjectRelevant Project Experience

Project description, Client, Project period Project Cost

Identification of possible options

Feasibility Study

Development of a Business Plan

- 39 -

Development of Implementation Plan

- 40 -

Annexure 4: Declaration Form for Local ContentSBD 6.2

DECLARATION CERTIFICATE FOR LOCAL PRODUCTION AND CONTENT FOR DESIGNATED SECTORS

This Standard Bidding Document (SBD) must form part of all bids invited. It contains general information andserves as a declaration form for local content (local production and local content are used interchangeably).

Before completing this declaration, bidders must study the General Conditions, Definitions, Directives applicablein respect of Local Content as prescribed in the Preferential Procurement Regulations, 2011, the South AfricanBureau of Standards (SABS) approved technical specification number SATS 1286:2011 (Edition 1) and theGuidance on the Calculation of Local Content together with the Local Content Declaration Templates [Annex C(Local Content Declaration: Summary Schedule), D (Imported Content Declaration: Supporting Schedule toAnnex C) and E (Local Content Declaration: Supporting Schedule to Annex C)].

1. General Conditions

1.1. Preferential Procurement Regulations, 2011 (Regulation 9) makes provision for the promotion of localproduction and content.

1.2. Regulation 9.(1) prescribes that in the case of designated sectors, where in the award of bids localproduction and content is of critical importance, such bids must be advertised with the specific biddingcondition that only locally produced goods, services or works or locally manufactured goods, with astipulated minimum threshold for local production and content will be considered.

1.3. Where necessary, for bids referred to in paragraph 1.2 above, a two stage bidding process may befollowed, where the first stage involves a minimum threshold for local production and content and thesecond stage price and B-BBEE.

1.4. A person awarded a contract in relation to a designated sector, may not sub-contract in such a manner thatthe local production and content of the overall value of the contract is reduced to below the stipulatedminimum threshold.

1.5. The local content (LC) expressed as a percentage of the bid price must be calculated in accordance withthe SABS approved technical specification number SATS 1286: 2011 as follows:

LC = [1 - x / y] * 100

Where

x is the imported content in Rand

y is the bid bid price in Rand excluding value added tax (VAT)

Prices referred to in the determination of x must be converted to Rand (ZAR) by using the exchange ratepublished by South African Reserve Bank (SARB) at 12:00 on the date of advertisement of the bid asindicated in paragraph 4.1 below.

- 41 -

The SABS approved technical specification number SATS 1286:2011 is accessible onhttp:/www.thedti.gov.za/industrial development/ip.jsp at no cost.

1.6 A bid may be disqualified if –

(a) this Declaration Certificate and the Annex C (Local Content Declaration: Summary Schedule) arenot submitted as part of the bid documentation; and

(b) the bidder fails to declare that the Local Content Declaration Templates (Annex C, D and E) havebeen audited and certified as correct.

2. Definitions

2.1. “bid” includes written price quotations, advertised competitive bids or proposals;

2.2. “bid price” price offered by the bidder, excluding value added tax (VAT);

2.3. “contract” means the agreement that results from the acceptance of a bid by an organ of state;

2.4. “designated sector” means a sector, sub-sector or industry that has been designated by the Departmentof Trade and Industry in line with national development and industrial policies for local production, whereonly locally produced services, works or goods or locally manufactured goods meet the stipulated minimumthreshold for local production and content;

2.5. “duly sign” means a Declaration Certificate for Local Content that has been signed by the Chief FinancialOfficer or other legally responsible person nominated in writing by the Chief Executive, or senior member /person with management responsibility(close corporation, partnership or individual).

2.6. “imported content” means that portion of the bid price represented by the cost of components, parts ormaterials which have been or are still to be imported (whether by the supplier or its subcontractors) andwhich costs are inclusive of the costs abroad (this includes labour or intellectual property costs), plus freightand other direct importation costs, such as landing costs, dock duties, import duty, sales duty or othersimilar tax or duty at the South African port of entry;

2.7. “local content” means that portion of the bid price which is not included in the imported content, providedthat local manufacture does take place;

2.8. “stipulated minimum threshold” means that portion of local production and content as determined by theDepartment of Trade and Industry; and

2.9. “sub-contract” means the primary contractor’s assigning, leasing, making out work to, or employinganother person to support such primary contractor in the execution of part of a project in terms of thecontract.

3. The stipulated minimum threshold(s) for local production and content (refer to Annex A of SATS1286:2011) for this bid is/are as follows:Description of services, works or goods Stipulated minimum threshold

_______________________________ _______%

_______________________________ _______%

- 42 -

4. Does any portion of the services, works or goods offered

have any imported content?

(Tick applicable box)

YES NO

4.1 If yes, the rate(s) of exchange to be used in this bid to calculate the local content as prescribed inparagraph 1.5 of the general conditions must be the rate(s) published by SARB for the specific currencyat 12:00 on the date of advertisement of the bid.

The relevant rates of exchange information is accessible on www.reservebank.co.za.

Indicate the rate(s) of exchange against the appropriate currency in the table below (refer to Annex A of SATS1286:2011):

Currency Rates of exchange

US Dollar

Pound Sterling

Euro

Yen

Other

NB: Bidders must submit proof of the SARB rate (s) of exchange used.

5. Were the Local Content Declaration Templates (Annex C, D and E) audited and certified as correct?

(Tick applicable box)

YES NO

5.1. If yes, provide the following particulars:

(a) Full name of auditor: ………………………………………………………(b) Practice number: ………………………………………………………………………..(c) Telephone and cell number: ……………………………………………………………….(d) Email address: ………………………………………………………………………..

(Documentary proof regarding the declaration will, when required, be submitted to the satisfaction of theAccounting Officer / Accounting Authority)

6. Where, after the award of a bid, challenges are experienced in meeting the stipulated minimum threshold forlocal content the dti must be informed accordingly in order for the dti to verify and in consultation with theAO/AA provide directives in this regard.

- 43 -

LOCAL CONTENT DECLARATION

(REFER TO ANNEX B OF SATS 1286:2011)

LOCAL CONTENT DECLARATION BY CHIEF FINANCIAL OFFICER OR OTHER LEGALLYRESPONSIBLE PERSON NOMINATED IN WRITING BY THE CHIEF EXECUTIVE OR SENIORMEMBER/PERSON WITH MANAGEMENT RESPONSIBILITY (CLOSE CORPORATION,PARTNERSHIP OR INDIVIDUAL)

IN RESPECT OF BID NO. .................................................................................

ISSUED BY: (Procurement Authority / Name of Institution):.........................................................................................................................NB

1 The obligation to complete, duly sign and submit this declaration cannot be transferred toan external authorized representative, auditor or any other third party acting on behalf of the bidder.

2 Guidance on the Calculation of Local Content together with Local Content DeclarationTemplates (Annex C, D and E) is accessible on http://www.thdti.gov.za/industrialdevelopment/ip.jsp. Bidders should first complete Declaration D. After completing Declaration D,bidders should complete Declaration E and then consolidate the information on Declaration C.Declaration C should be submitted with the bid documentation at the closing date and timeof the bid in order to substantiate the declaration made in paragraph (c) below. DeclarationsD and E should be kept by the bidders for verification purposes for a period of at least 5 years. Thesuccessful bidder is required to continuously update Declarations C, D and E with the actual valuesfor the duration of the contract.

I, the undersigned, …………………………….................................................... (full names),do hereby declare, in my capacity as ……………………………………… ………..of ...............................................................................................................(name of bidder entity), thefollowing:

(a) The facts contained herein are within my own personal knowledge.

(b) I have satisfied myself that:

(i) the goods/services/works to be delivered in terms of the above-specified bid complywith the minimum local content requirements as specified in the bid, and as measuredin terms of SATS 1286:2011; and

(ii) the declaration templates have been audited and certified to be correct.

(c) The local content percentage (%) indicated below has been calculated using the formula givenin clause 3 of SATS 1286:2011, the rates of exchange indicated in paragraph 4.1 above and theinformation contained in Declaration D and E which has been consolidated in Declaration C:

Bid price, excluding VAT (y) R

Imported content (x), as calculated in terms of SATS 1286:2011 R

Stipulated minimum threshold for local content (paragraph 3 above)

Local content %, as calculated in terms of SATS 1286:2011

- 44 -

If the bid is for more than one product, the local content percentages for each productcontained in Declaration C shall be used instead of the table above.The local content percentages for each product has been calculated using the formula givenin clause 3 of SATS 1286:2011, the rates of exchange indicated in paragraph 4.1 above andthe information contained in Declaration D and E.

(d) I accept that the Procurement Authority / Institution have the right to request that the localcontent be verified in terms of the requirements of SATS 1286:2011.

(e) I understand that the awarding of the bid is dependent on the accuracy of the informationfurnished in this application. I also understand that the submission of incorrect data, or data thatare not verifiable as described in SATS 1286:2011, may result in the Procurement Authority /Institution imposing any or all of the remedies as provided for in Regulation 13 of the PreferentialProcurement Regulations, 2011 promulgated under the Preferential Policy Framework Act(PPPFA), 2000 (Act No. 5 of 2000).

SIGNATURE: DATE: ___________

WITNESS No. 1 DATE: ___________

WITNESS No. 2 DATE: ___________

- 45 -

Annexure 5 – Declaration of Interest

1. Any legal person, including persons employed by the state¹, or persons having a kinship with personsemployed by the state, including a blood relationship, may make an offer or offers in terms of thisinvitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In viewof possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to personsemployed by the state, or to persons connected with or related to them, it is required that the bidder orhis/her authorised representative declare his/her position in relation to the evaluating/adjudicatingauthority where-

- the bidder is employed by the state; and/or

- the legal person on whose behalf the bidding document is signed, has a relationship withpersons/a person who are/is involved in the evaluation and or adjudication of the bid(s), or whereit is known that such a relationship exists between the person or persons for or on whose behalfthe declarant acts and persons who are involved with the evaluation and or adjudication of thebid.

2. In order to give effect to the above, the following questionnaire must be completed andsubmitted with the bid.

2.1 Full Name of bidder or his or her representative: …………………………………………………….

2.2 Identity Number:………………………………………………………………………………………

2.3 Position occupied in the Company (director, trustee, shareholder²): ………………………………..

2.4 Company Registration Number: ………………………………………………………………..…….

2.5 Tax Reference Number: …………………………………………………………………….………

2.6 VAT Registration Number: ………………………………………………………………....

2.6.1 The names of all directors / trustees / shareholders / members, their individual identity numbers, taxreference numbers and, if applicable, employee / persal numbers must be indicated in paragraph 3below.

¹“State” means –

(a) any national or provincial department, national or provincial public entity or constitutional institutionwithin the meaning of the Public Finance Management Act, 1999 (Act No. 1 of 1999);

(b) any municipality or municipal entity;

(c) provincial legislature;

(d) national Assembly or the national Council of provinces; or

- 46 -

(e) Parliament.

²”Shareholder” means a person who owns shares in the company and is actively involved in the management ofthe enterprise or business and exercises control over the enterprise.

2.7 Are you or any person connected with the bidder YES / NO

presently employed by the state?

2.7.1 If so, furnish the following particulars:

Name of person / director / trustee / shareholder/ member: ……....………………………………

Name of state institution at which you or the person

connected to the bidder is employed :………………………………………

Position occupied in the state institution:………………………………………

Any other particulars:

………………………………………………………………

………………………………………………………………

………………………………………………………………

2.7.2 If you are presently employed by the state, did you obtain YES / NO

the appropriate authority to undertake remunerative

work outside employment in the public sector?

2.7.2.1 If yes, did you attached proof of such authority to the bid YES / NO

document?

(Note: Failure to submit proof of such authority, where

applicable, may result in the disqualification of the bid.

2.7.2.2 If no, furnish reasons for non-submission of such proof:

…………………………………………………………………….

…………………………………………………………………….

…………………………………………………………………….

2.8 Did you or your spouse, or any of the company’s directors / YES / NO

trustees / shareholders / members or their spouses conduct

- 47 -

business with the state in the previous twelve months?

2.8.1 If so, furnish particulars:

…………………………………………………………………..

…………………………………………………………………..

…………………………………………………………………...

2.9 Do you, or any person connected with the bidder, have YES / NO

any relationship (family, friend, other) with a person

employed by the state and who may be involved with

the evaluation and or adjudication of this bid?

2.9.1 If so, furnish particulars.

……………………………………………………………...

…………………………………………………………..….

………………………………………………………………

2.10 Are you, or any person connected with the bidder, YES/NO

aware of any relationship (family, friend, other) between

any other bidder and any person employed by the state

who may be involved with the evaluation and or adjudication

of this bid?

2.10.1 If so, furnish particulars.

………………………………………………………………

………………………………………………………………

………………………………………………………………

2.11 Do you or any of the directors / trustees / shareholders / members YES/NO

of the company have any interest in any other related companies

whether or not they are bidding for this contract?

2.11.1 If so, furnish particulars:

…………………………………………………………………………….

…………………………………………………………………………….

…………………………………………………………………………….

3 Full details of directors / trustees / members / shareholders.

- 48 -

Full Name Identity NumberPersonal Tax

Reference Number

State EmployeeNumber / Persal

Number

4. DECLARATION

I, THE UNDERSIGNED (NAME)………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT. IACCEPT THAT IDC MAY REJECT THE BID OR ACT AGAINST ME SHOULD THIS DECLARATIONPROVE TO BE FALSE.

………………………………….. ..……………………………………………

Signature Date

…………………………………. ………………………………………………

Position Name of bidder

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Annexure 6 – Shareholders’ Information

[Note to the bidder: the bidder must complete the information set out below. If the bidder requires more spacethan is provided below it must prepare a document in substantially the same format setting out all the informationreferred to below and return it with Returnable Schedule 2.]

Name of the shareholder ID Number Race Gender % shares

Note: The bidder must also attach the detailed Company/ Group Structure where relevant.

I, THE UNDERSIGNED (NAME)………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED ABOVE IS CORRECT.

………………………………….. ..……………………………………………

Signature Date

…………………………………. ………………………………………………

Position Name of bidder