BBBEE PREFERENTIAL PROCUREMENT PLAN

1. INTRODUCTION 1

2. SUCCESS FACTORS 1

3. APPROACH TO PREFERENTIAL PROCUREMENT 1

4. ANNUAL ACTIVITIES 13

5. rectification procedure 13

1. INTRODUCTION

The objective in relation to this Element is: To ensure the participation of EMEs, QSE’s and local Enterprises in the Project. Promote sustainable local economic development within Tshwane. Actively support procurement from black owned EME’s and QSE’s along with black women owned entities by

identifying opportunities to increase the procurement from local suppliers in order to support local employment creation.

The Private Party appointed Suppliers in the following way: Selected based on experience, value add and B-BBEE Recognition level

The Construction Subcontractor has appointed Design team consultants and Suppliers by:Careful selection of the design team as being leaders in their field, expertise and commitment to projects of this nature. Suppliers selected, have been limited to those who can add value in the design phase and by their expertise are able to bring value for money to the process, and have strong BBBEE credentials in the very important fields of electrical and mechanical engineering.

The Operations Subcontractor has not yet appointed any Suppliers and their approach is discussed below.

2. SUCCESS FACTORS

The success factor for the project in relation to Preferential Procurement is that the City is able through this Element to meet its BBBEE Objectives for the Project. The local Enterprises in Tshwane will be empowered through the Private Party and Material Subcontractors sourcing from local Vendors. This will also lead to economic growth and job creation in Tshwane.

Transparency in the procurement process and procedures Competitive procurement process Development and inclusion of local black entities into the supply chain Effective contract and supplier management Comprehensive contract award and take on process Effective quality control and management process and system Regular audit process

3. APPROACH TO PREFERENTIAL PROCUREMENT

Private Party

The Private Party Preferential Procurement Policy will be based on local contractors/vendors to procure goods and services required to maintain the operating structure of the Private Party, excluding insurances.

The Private Party will source the following from Local EME’s and QSE’s based in Tshwane Offices Stationery supplies Grocery and cleaning supplies Computer and Office supplies Office Cleaning Supplier

Preference will be given to suppliers whose B-BBEE Recognition levels are between Level 1 and Level 4; Black owned Businesses and Black Women owned Businesses that are based in Tshwane.

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In summary, the table below illustrates the Private Party obligations and intended achievements in percentageCommitted Obligation

BBBEE Procurement 45%QSE and EME Procurement 10%Black Owned Enterprise Procurement 10%Adjusted Local Enterprise Procurement 0%

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Construction Joint Venture

The construction phase will be for a period of 24 Months and the Procurement Policy and intended approach will be as set out in the Project Management section of the Technical Submission. Targeted procurement strategy will be implemented; focussing on the requirements of the City with regards all aspects of B-BBEE and ensuring the commitments made are achieved, without sacrificing quality, time to delivery and value for money.

In terms of approach the CJV will divide out the various work packages into the larger works contracts and the smaller trades which will include the wet works etc.

Managing ProcurementThe Construction Joint Venture’s Procurement Management strategy and methods will be guided by commitment to Preferential Procurement for BBBEE companies and suppliers competent to meet the exacting material specifications required by the City of Tshwane. Wherever possible goods will be procured from BBBEE companies, and the Construction Joint Venture will place the emphasis on procuring goods from Tshwane based enterprises, as well as Black Women owned enterprises.

Due to time constraints in putting the Contract Value in place, very few procurement commitments (i.e. contracts) have been made, which allows the CJV the opportunity to call for competitive tenders, meeting the exacting requirements placed on the process by the City. These inter alia relate to the development of local enterprises, which could well see new business being established in the City. It should be noted that the tender process is geared specifically to meet the commitments made and preference will be given to local businesses and suppliers for the procurement of certain goods and services, without incurring a premium cost for such goods and services.

Local Enterprises will be identified using databases, networks and previous experiences and will be invited to tender on goods and services.

Please note that no contracts are binding until such time as that the Construction Subcontract has been signed and this is linked to the signature of the main PPP Agreement.

Material ProcurementThe Construction Joint Venture will realise efficient material procurement by advanced scheduling, ordering and expediting according to the detailed construction programme. This function is initiated by site management, implemented and administered by the site based purchaser and the Procurement Committee. These functions will be supported by the relative constituents of the Construction Joint Venture’s purchasing departments. It will be managed by the Project Manager. The Construction Subcontractor’s system ensures competitive purchasing and avoids delays that may occur through industry supply bottlenecks. This process also ensures that the required samples are submitted in sufficient time for approval.

Procurement processes rely on the scouring of data bases, using networks and past experiences to compile tender lists for various goods and services to be procured. In order to qualify for inclusion on such lists, specific commercial requirements have to be provided, and these are assessed in terms of achieving the BBBEE procurement targets. Businesses have to be real, established with necessary registration as required by regulations and the laws governing the Country.

This information will be used to see if additional Enterprise Development could be implemented.

Targets and Indicators:Commitments as set out in the BBBEE Matrix, and continual monitoring to ensure these are met.

Empowerment ControllerCoordination and implementation of BBBEE elements such as skills transfer, training and preferential procurement which serve the project as a whole will be carried out by the empowerment controller, overseen by the Contracts Director in line with Construction Joint Venture’s policies and procedures.

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Achievements will be tracked on a monthly basis, and quarterly reports submitted to the City which sets out achievements to date. At the end of the Construction Period, a final report will be compiled which will indicate to what extent the undertakings with regards BBBEE have been met.Performance ManagementThe three pillars of construction being Time, Quality and Cost are used to performance manage the construction team.Possible StakeholdersThe requirements of the BBBEE schedules set out potential stakeholders, without whom, this project cannot be built and delivered to the City and the citizens of Tshwane.How suppliers will be developedSuppliers and Vendors will be developed as per the Enterprise Development plan.Participation of Tshwane Based EnterprisesIt is the intention to engage with as many Tshwane based enterprises to be able to meet the commitments made. The data bases which have been promised by the City, (as well as the Tshwane Business Forum) will be used to identify suitable suppliers than can be invited to tender for various work packages.

As the time has been limited, it has not been possible to clearly define work packages and allocate accurate values to these packages; the Construction Joint Venture has set up budgets which will be developed into work packages during the final detail design stage and procurement phase of the project. In anticipation, a first pass on contractors identified to undertake these various packages have been identified. This list is not finite, and will be subject to change, to support meeting the requirement for local enterprises to be used extensively in delivering the building.

CITY OF TSHWANE - TSHWANE HOUSE            

 

D&C SUBCONTRACTOR JV - TIER 4

PROCUREMENT SPEND              

Supplier/Vendor name

Nature of Services/Goods provided

Contribution level *

BBEEE Recognition level

Supplier size*

Local Company

Black owned > 50%

Black women

owned > 50%

1 Stallion Security Site security Level 3 110% QSE Yes 10% 0%

2 Group Five Plant hire Level 2 123% Large No 26.86% 4.29%

3 Trencon Plant hire Level 2 123% Large No 100.00% 0.00%

4 Group Five Crane erection & dismantling Level 2 123% Large No 26.86% 4.29%

5 Trencon Crane erection & dismantling Level 2 123% Large No

100.00% 0.00%

6 Group Five Mobile cranes Level 2 123% Large No 26.86% 4.29%

7 Trencon Mobile cranes Level 2 123% QSE No 100.00% 0.00%

8 Group Five Transport Level 2 123% Large No 26.86% 4.29%

9 Trencon Transport Level 2 123% QSE No 100.00% 0.00%

10 ROBOR Scaffolding Level 4 100% Large No 26.12% 7.07%

11 Group Five Safety Level 2 123% Large No 26.86% 4.29%

12 Trencon Safety Level 2 123% QSE No 100.00% 0.00%

13 Neotel Internet & telephone Level 4 100% Large No 19% 3%

14 TSHWANE Water & sewage       Yes    

15 Industrial Plumbers Water & sewage reticulation Level 3 110% QSE No 0% 0%

16 TSHWANE Power consumption       Yes    

17 Edison Power Gauteng Power reticulation Level 2 123% Large No 100% 0%

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18 Voldeo cc Rubble removal Level 4 110% QSE Yes 25% 25%

19 Carma Cleaning Cleaning Level 4 110% EME Yes 0% 0%

20 Group Five Offices & stores Level 2 123% Large No 26.86% 4.29%

21LOMBARD (wait for updated) Insurance Level 6 60%   No 7.06% 3.31%

22 Standard Bank of SA Surety            

23Zero Unlimited Earthworks Azania Earthworks Level 3 110% QSE No 10% 0%

24 Pestatermite cc Soil poisoning Level 4 100% QSE Yes 0% 0%

25 Industrial Plumbers Sub soil drainage Level 3 110% QSE No 0% 0%

26 AFRISAM ? Concrete Level 2 123% Large No 0% 0%

27 TBM Infrastructure Concrete Labour only Level 3 110% QSE No 100% 0%

28 Masterfloat Power floating Level 3 110% EME No 0% 0%

29 Group Five Stripping piles Level 2 123% Large No 26.86% 4.29%

30 Pre-Form Formwork Level 6 60% QSE Yes 15% 12%

31 Masterfloat Saw cuts Level 3 110% EME No 0% 0%

32Ngobeni & TDS Waterproofers cc Joint fillers Level 2 123% QSE Yes 26% 0%

33 Barnes Group Reinforcement Level 2 123% Large No 26.86% 4.29%

34 Barnes Group Mesh reinforcement Level 2 123% Large No 26.86% 4.29%

35 Barnes Group Dowels Level 2 123% Large No 26.86% 4.29%

36 Sabrix Brickwork Level 6 60% Large Yes 3.90% 0.00%

37 TBM Infrastructure Brickwork Labour only Level 3 110% QSE No 100.00

% 0.00%

38Ngobeni & TDS Waterproofers cc Waterproofing Level 2 123% QSE Yes 26% 0%

39Damax Plastics (Kahn & Kahn) DPC Level 2 123% QSE No 0% 0%

40Ngobeni & TDS Waterproofers cc Joint sealers Level 2 123% QSE Yes 26% 0%

41Southey Group (Tate & Nicholls) Roof coverings Level 4 100%   No 31.90% 4.12%

42 The Door Group Doors Level 4 100% EME No 0% 0%

43 The Door Group FE doors Level 4 100% EME No 0% 0%

44 Sun Shop fitters (Old) Shop fitting Level 1 135% QSE Yes 100% 0%

45 Ohlhorst Africa Vanity tops Level 3 110% Large Yes 26% 0%

46A.B.E. Contracting Services Suspended ceilings Level 2 123% QSE No 60% 30%

47A.B.E. Contracting Services Partitioning Level 2 123% QSE No 60% 30%

48 Combined FlooringFloor coverings - carpets Level 2 123% QSE No 67% 0%

49 Sure Sign Signage Level 1 135% QSE No 10% 100%

50Iliad (Buchels Hardware) Toilet fittings Level 5 80% QSE Yes 5.66% 2.68%

51 Sunpro Blinds Level 3 110% EME Yes 0% 0%

52 Sun Shop fitters (Old) Tea kitchens Level 1 135% QSE Yes 100% 0%

53 Iliad (Buchels Hardware) Walk-off mats Level 5 80% QSE Yes 5.66% 2.68%

54 Khombanani Steel (Tass) Structural steel Level 2 123% QSE No 26% 0%

55 Khombanani Steel (Tass) Canopies/shading Level 2 123% QSE No 26% 0%

56 Nugget Steel Sundry metalwork Level 3 110% EME No 100% 0%

57 Milga Manufacturing cc Balustrading Level 2 123% ? Yes 0% 0%

58 Diri Aluminium Glazed balustrading Level 8 10% QSE Yes 0% 0.00%

59Govender's Aluminium & Glass Metal louvers Level 2 123% QSE No 100% 50%

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60 Sandpalm Doors cc Roller shutter doors Level 1 135% QSE No 50% 0%

61Govender's Aluminium & Glass

Aluminium lobby doors, etc. Level 2 123% QSE No 100% 50%

62 Diri Aluminium Lift shaft glazing Level 8 10% QSE Yes 0% 0.00%

63Govender's Aluminium & Glass

Aluminium façade, windows, etc. Level 2 123% QSE No 100% 50%

64 Diri Aluminium Roof light Inc. glazing Level 8 10% QSE Yes 0% 0.00%

65 Riggers Steeplejacks Façade cleaning rails Level 5 80% QSE No 0% 0%

66 Ohlhorst Africa Plastering Level 3 110% Large Yes 26% 0%

67 Andrew Africa Textured coatings Level 5 80% QSE No 0% 0%

68 Ohlhorst Africa Tiling Level 3 110% Large Yes 26% 0%

69 Industrial PlumbersPlumbing - rainwater disposal Level 3 110% QSE No 0% 0%

70 Edelweiss Glass Mirrors Level 4 100% ? Yes 0% 0%

71 Magpro Construction cc Painting Level 3 110% QSE Yes 10% 0%

72 City Marking's Road marking Level 2 123% QSE No 100% 50%

73 Majestic Wallpapers cc Wallpaper Level 3 110% EME No 100% 0%

74 Group FiveBuilder's work icw Specialist installations Level 2 123% Large NO 26.86% 4.29%

75   Refuse compactor            

76 TBM Infrastructure Guard house Level 3 110% QSE No 100% 0%

   Specialist subcontractors:            

77Zero Unlimited Earthworks Azania Bulk earthworks Level 3 110% QSE No 10% 0%

78 Esorfranki Construction Piling Level 4 100% QSE No 18.86% 1.24%

79 Esorfranki Construction Lateral support work Level 4 100% QSE No 18.86% 1.24%

80 Edison Power Gauteng Electrical Level 2 123% Large No 100% 6.25%

81 Cold Air Projects HVAC & BMS Level 2 123% QSE No 0% 0%

82 Industrial Plumbers Plumbing Level 3 110% QSE No 0% 0%

83 Umlilo Sprinklers Level 3 110% QSE No 100.00

% 50%

84 MFS Smoke detection Level 2 123% EME No 0% 0%

85 RVI/Curvent Smoke extraction Level 5 80% QSE No 25.98% 12.34%

86 Sure Sign Fire Signage Level 1 135% QSE No 100% 100%

87 Sigma Lifts Lift installation Level 4 100% QSE No 30% 30%

88 Smart Line IntegrationSecurity & access control Level 4 100% QSE No 0% 0%

89Data Connectivity Solutions Data & voice cabling Level 3 110% QSE No 25% 0%

90Servest (Landscape Studio) Landscaping Level 3 110% EME Yes 30.38% 7.70%

91Servest (Landscape Studio) Water feature Level 3 110% EME Yes 30.38% 7.70%

92  Secure piazza lock down barrier            

93   "Green star" building            

                 

94 Impumelelo Furniture Level 2 123% QSE No 100% 25%

95 Classic Working Life Furniture Level 4 100% EME Yes 0% 0%

96 SoFa So Good Furniture Level 1 135% QSE No 55% 10%

97 Steed Furniture Level 3 110% EME No 33% 33%

98 PH Designs Furniture Level 2 123% QSE No 0% 0%

                 

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99L Y T Architect & Motsepe Architects JV Architects Level 3 110% QSE No    

                 

100 LYT InteriorsInterior design & space planning Level 3 110% QSE No    

                 

101 Head Interiors Interior design Level 3 110% QSE No 0% 0%

                 

102 Brian Heineberg & Associates Quantity surveyors Level 7 50% ? No 0% 0%

                 

103 PURE CONSULTINGStructural & Façade engineers Level 3 110% ? No 9.93% 3.96%

                 

104Spoormaker Consulting Engineers HVAC Level 3 110% ? Yes 30% 10.63%

                 

105Spoormaker Consulting Engineers Electrical Level 3 110% ? Yes 30% 10.63%

                 

106Mike Gough Building Services (Old) Wet services Level 4 100% EME No 0% 0%

                 

107 PJC Consulting Sustainability Level 3 110% QSE No 0% 0%

                 

108 Landscape Studio Landscaping Level 4 100% EME Yes 0.00% 0.00%

                 

109 ITS Traffic Engineers Traffic engineers Level 2 123% ? Yes 65% 12.50%

                 

110 Solutions for Elevating Lifts & escalators Level 4 100% EME No 0% 0%

                 

111 Building Code Consultants Fire protection Level 4 100% EME No 0% 0%

                 

112 Origin Town Planning Town planning Level 4 100% EME Yes 0% 0%

                 

113 Crossman Pape Geotechnical fees            

                 

114   Land surveyor            

                 

115 Weber Wentzel Legal fees            

                 

116   Environmental fees            

                 

117   Health & Safety fees            

                 

118 City of Tshwane Bulk service contributions       Yes    

                 

119 City of Tshwane Electrical connection fees       Yes    

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Note: None of these entities have any contractual standing on the project as no negotiation or tender process has been implemented as this process can only commence once Financial close is achieved so proper correct contract procedures can be followed.

The table below indicates the obligation in percentage for CJV for the 24 months. It should be noted that CJV is tier 3 and that it will only indicate procurement spend up to tier 4.

CJV Spend: Committed Obligation

BBBEE Procurement 56.2%QSE and EME Procurement 10%Black Owned Enterprise Procurement 15%Adjusted Local Enterprise Procurement 23%

Goals Associated with Preferential Procurement:As required by the Preferential Procurement Requirements and commitments:

Status of enterprises, are to be assessed based upon the DTI Codes of Practice for BBBEE. This approach utilises the Balanced Scorecard with nationally accepted targets being aspired to by the participants. Areas such as equity (ownership), management, employment equity, skills development, Black women and disabled participation and procurement will be measured according to a nationally accepted standard. This allows the assessment of performance of the enterprises and subsequently the nature of the cash flows of the project to target groups. In addition to the codes, an assessment of the level of engagement with disabled people will be carried out.

The quantum of engagement with targeted enterprises in the planning and execution of the project will ensure the goals are achieved, and will encourage all participants in the cash flow to achieve the goals.

The targets set out in the BBBEE Matrix, serves as the basis for defining target groups and enterprises and commitments to be achieved or wherever possible exceeded..

Basis for targeting:1. Size of the enterprise, Small Enterprise definition by DTI, Act on Small Business. The development of SMME’s during

the contract, to remain SMME, even if the contract granted due to the City of Tshwane project results in the enterprise exceeding the definition as a result of the apportioned work.

2. Ownership risks and profits to be commensurate. Indicators of control should be centred on the authority and power to manage assets, goodwill and daily operations of the business. The critical issue in respect of empowerment companies is whether or not they are independent, that is free of direct or indirect control of another company.

3. Management4. Procurement (B-BBEE), and value addition.5. Use of declaration by suppliers of their status (see SANS* draft declaration), and BEE Certification according to the

DTI Codes of Practice.6. Evaluation of potential suppliers prior to tender.

Framework for Targeted Procurement:Implementing procurement as an instrument of policy to achieve and exceed targets.The framework provides a basis for continuous monitoring of performance, from preparation of tender to implementation and completion. This involves the alignment of procurement documentation and the collection of declaration and BEE certification from suppliers on a continuous basis. Continuous evaluation of policy and cost will be required since some of the draw backs of targeted procurement include:

1 The need to manage new suppliers and in some cases an increased number of commercial relations, with an increase in the number of new entrants with poor management and experience, this will be overcome through mentoring and other interventions.

2. Threats include loss of effectiveness and increased costs. This will be overcome by an experienced team of evaluators and mentors. The bidder has previous experience in targeted procurement and access to a large number of emerging businesses. This will help overcome these challenges. This framework has been successfully applied previously to manage the increase in effectiveness and reduce costs.

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As can be noted above the Construction SPV has identified and determined the extent of work to be allocated to Black SMME and Exempted Micro Enterprise. The Status of this SMMES will be assessed based upon the DTI Codes of best practice for BBBEE.

The list of procurement that is set aside for vendors will be established from time to time to enable the construction subcontractor to meet its preferential procurement commitments. These set-asides will allocate aspects of spend to certain classes of suppliers, an example of a class of suppliers.

The CJV will utilise the City database of contractors/vendors/etc. to identify any local companies that can be used on the project. Further in its tender process, the CJV will ensure that there is a specific criterion that needs to be met in terms of BBBEE and QSE and EME. The emphasis will be on local contractors/vendors in the tender evaluations.

Operations Joint Venture

The members of the OJV have shown itself as a true supporter of small business and specifically local business in areas where it has rolled out projects. Informed by Transformation imperatives, the Localisation programmes typically focus on procurement from local suppliers meeting the following requirements:

Procurement from Local Black Suppliers, Procurement from Black Women Owned Enterprises, Procurement from Small Black Enterprises, Local Content to Site.

Previous achievements at sites have seen procurement from large black suppliers from designated areas of approximately 30%, procurement from black women owned suppliers of approximately 49%, procurement from small black supplier was approximately 62% and local content to site spend was approximately 70%.

The key consideration with localisation is the sourcing of goods and services from local suppliers. OJV also links localisation with aspects of supplier development. This ensures that all suppliers, particularly those within the local are adequately supported with the intention of increasing the probability of having sustainable successful business.

An additional motivation for introducing supplier development interventions at local supplier level is to ensure that the highest levels of service and quality are achieved by all suppliers associated with the OJV.

Processes for achieving localisationStrategic SourcingA key aspect of localisation is strategic sourcing which will be used to identify strategic goods and services not currently available within region. Following this identification process, enterprises with the potential to supply these goods and services will be engaged and assisted with developing the capacity to supply these goods and services. These activities form part of enterprise development initiatives however the focus will primarily be on ensuring that Tsebo has the required local suppliers to provide all commodities needed to deliver this project.

Local Supplier IdentificationProspective local suppliers will be identified within the City of Tshwane district municipality. These will be vetted to ensure that all City of Tshwane requirements are adhered to. Those not already registered with City of Tshwane as vendors, will be required to and assisted with the registration process. Local business forums, associations and chambers will be engaged in order to identify additional suppliers as deemed appropriate. The OJV will also utilise the database of local suppliers to be provided by the City.

Supplier Development A detailed supplier development commitment will be implemented to support this process. Following the vetting process, an enterprise development consultant will sit down with suppliers identified as requiring enterprise development support and they’ll be taken through the supplier development process as discussed in the section “How will suppliers be developed?”

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This process is typically defined in a 36 month plan with deliverables for each of the periods and the team is put together to achieve the stated objectives. As much as the focus is on enterprise development, the benefits of these programmes also talk to some aspects of socio-economic development in a manner that is appropriate for the project and its location. The potential benefits of local enterprise development and socio-economic development arising from this intervention are:

Creation of sustainable businesses, Creation of employment opportunities particularly for youth, women, and disabled people in a targeted geographic

area; Achieving employment targets for disabled people;

All the additional benefits will be largely determined by the needs of the local community as well as businesses in the area. This will be identified as part of the local supplier sourcing activities and also engagement with community forums where appropriate.

Intended procurement approach and its preference mechanism;Preferential Procurement policies will be implemented within the OJV. These policies will guide the procurement function and will be aligned to ensure that procurement targets are being met. To support the preferential procurement policy, processes will be put in place to guide the supplier engagement and contract management function.

A vendor/supplier tracking tool will be in place to monitor and evaluate continued compliance to contractual obligations in terms of service delivery, quality, pricing and B-BBEE. This tool will track spend across the targeted supplier groups

The organisation will have on-going engagement with its vendors/suppliers and regular audits on compliance will take place.

The preference mechanism for the engagement of suppliers will be based on (in no particular order):o B-BBEE Contribution statuso Entity classification ( Generic, QSE, EME)o Black Equity statuso Black Women Equity status o Locality of the suppliero Quality of the good or service suppliedo Pricing structure

The OJV will engage the market in fair, sound and equitable procurement practice at all times and will enter into transactions on the basis of having selected suppliers via a formal process, which includes evaluation criteria that are weighted and scored. Decisions will take into account the BEE credentials and initiatives of suppliers and this will form part of the evaluation, scoring and decision criteria where appropriate. Where all other factors are equal, preference will be given to BEE qualified and certified suppliers. .

Specific plans will be developed and implement with the 3 to 6 months of services commencement date in accordance with the preferential procurement policies of the OJV to ensure the OJV achieve the targets.

The OJV will take into consideration the database to be provided by the City of potential Tshwane based suppliers that will be included in the procurement appointment process – Note at this time the specific suppliers have not been identified.

In order to achieve the above percentages the Operation Joint Venture may procure the following goods and services indicated below. The list below shows the procurement spend on SMMES, QSEs and EMEs. The list will be discussed with the City within 3 months of services commencement.The services that OJV would possibly look to subcontract as part of preferential procurement are as follows:

HVAC Installation Building Management System Electrical Installation Lighting Installation

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Generators HT Electrical Reticulation Fire Detection Installation Fire Protection Installation Technical Security Installation Lifts UPS Systems General Fabric Maintenance Internal Plants Asset Management Waste Management & Recycling Physical Security Landscape, Gardens, Ground Maintenance & Irrigation Cleaning & Hygiene Pest Control

Approach:The OJV will determine what works and services can be undertaken by QSEs and EMEs. Thereafter it will go into a tender process. In addition, the OJV will review the City’s database and send out tender documents to local companies to compete in the tender process as well.

o Priority will be given to those measured entities who are Empowering Suppliers as defined in the Codes of Good Practice 2013 and whose B-BBEE contributor level is 4 or higher, except in exceptional circumstances which will then require Board approval for procurement.

o Procurement from measured entities who black equity shareholding is 51% or more or 30% or black women equity will be prioritised.

o Procurement from measured entities who are EME’s or QSE’s will be prioritised.o Procurement from local measured entities will be prioritised

The OJV plans to achieve the following in addressing this element:

Years 0 -5o 50% B-BBEE procurement spend from all B-BBEE compliant vendorso 30% B-BBEE procurement spend from Qualifying Small Enterprises and Exempt Micro Enterpriseso 15% B-BBEE procurement spend from 51% black owned or 30% black women owned enterpriseso 70% B-BBEE procurement spend local to site

Years 6 – contract end o 70% B-BBEE procurement spend from all B-BBEE compliant vendorso 30% B-BBEE procurement spend from Qualifying Small Enterprises and Exempt Micro Enterpriseso 20% B-BBEE procurement spend from 51% black owned or 30% black women owned enterpriseso 70% B-BBEE procurement spend local to site

Performance management;BEE suppliers will be treated consistent with market practice with regards to quality, price, expected service levels, or any other commercial or technical requirements

To ensure that performance levels and standards will not be detrimental to the business, potential BEE companies and/or small business suppliers shall be totally accountable for maintaining agreed specifications. The following selection criteria may

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therefore be applied (This is not an extensive or exhaustive list and serves as a guideline only) in addition to more detailed and specific criteria:

Technical competency Supply and Delivery ability Guarantees and Warrantees Service Level Agreements Price and value for money Skills and competencies (including qualifications and certifications) Compliance with RSA legal, statutory and regulatory requirements Geographical Location Referrals / references Site inspections Acceptable accounting practices and systems Valid Company listing and VAT + SARS compliance Acceptance of contractual terms and conditions No outstanding or current judgements

All suppliers that intend doing business with The OJV shall be evaluated in accordance with a supplier assessment evaluation, which will include a BEE Questionnaire within the balanced scorecard framework specified by the DTI. However, acquiring the information to accurately assess suppliers on all aspects of the balanced scorecard is time-consuming, so in the interest of providing accurate information in an acceptable time frame, it has been decided to do the supplier assessments in two phases.

Phase 1The OJV will contract with an accredited rating and verification agency to assist in evaluating suppliers regarding their BEE status. The first phase assesses only the BEE equity of suppliers, as well as taking into account any rating that suppliers may have achieved through Empowerdex.

Phase 2The OJV will be conduct regular supplier audits. These audits will assess the following criteria: Black ownership (including shareholding / Equity)

Management Employment Equity (EE) Employees employment equity Skills Development BEE Procurement Social Upliftment initiatives and other Black economic empowerment initiatives of the supplier

The criteria for the phase 2 evaluations, as listed above, will not have the same weightings for all types of suppliers. Suppliers will be classified as either large companies, SMME’s (EME’S and QSE’s) or Entrepreneurs. All suppliers will be rated and ratings will be recorded in the approved supplier listing.

The supplier ratings will be regularly updated with each tender and utilised in the evaluation of all procurement initiatives. Ratings will be revisited on expiry of a contract, prior to renewal or no less than every 18-24 months and the rating must show improvement each time it is assessed.

Operations Joint Venture:Possible Stakeholders;

o City of Tshwaneo Local small business chamberso Local small business forumso Local communities and community leaderso Local Tribal Authorities o Local economic development agencies

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o Local funding agencies

How suppliers will be developedTo be successful, supplier development programmes require significant investment in time and resources. A sustainable programme typically yields the most positive results and importantly, is achievable long after the life of project. Within the City of Tshwane context, there are three key drivers of supplier development. These are:

Initiatives supporting enterprise development from a broad based black economic empowerment perspective; The creation and/or accessing of sustainable markets for the developed enterprises; Developing the human resources associated with the beneficiary enterprises. These would vary from recruitment to

training the beneficiary enterprise’s staff;

Participation of Tshwane based EnterprisesThe Shareholders of the OJV each have a well-established procurement department that maintains a database of preferred suppliers within Tshwane. The OJV shall further utilise the database to be provide by the City of local based suppliers that the OJV may include in the procurement appointment phase.

Suppliers will only be appointed in so far as they assist the OJV to meet the requirements of the bid and at a minimum are local based Tshwane businesses as well as being black owned enterprises

4. ANNUAL ACTIVITIESThe annual activities that will be undertaken by the Construction and Operations Subcontractors are:Construction Joint Venture:

The Construction Joint Venture has identified the following Annual Activities:o Internal Audit (Procurement forms part of the annual internal audit)o Annual BBBEE Report

Operations Joint Venture: The Operations Joint Venture has identified the following Annual Activities:

o Identification of new qualifying black and black women owned suppliers to be included into the supply chain and supplier development programmes

o On-going monitoring and evaluation of supplier performanceo Monthly and quarterly reporting against targets

5. RECTIFICATION PROCEDUREPrivate Party The Private Party aims to retain its Preferential Procurement Commitment by procuring from Black Owned Local Enterprises for the daily operations and services required for the Project.

Construction Joint Venture The Construction Joint Venture aims to meet its Preferential Procurement Targets by identifying local enterprises in general, and then targeting Black Owned Local Enterprises for work packages required to meet the delivery of the project in the Construction Period.

Operations Joint VentureThe Shareholders of the OJV each have a well-established procurement department that will actively measure, monitor and manage the suppliers providing services. Suppliers will be contracted with on the basis that they assist the OJV to ensure compliance with the BBBEE commitments, where the suppliers fail to assist, the OJV will implement corrective measures as per the agreed SLA with the applicable suppliers to ensure the targets are met.

SLA’s will be agreed with each supplier, where all criteria that the suppliers are requested to provide will be clearly identified and corrective measures agreed where suppliers fail to achieve their targets

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In the event that the Private Party and/or Material Subcontractors are not able to meet the commitment in relation to this Element, the Private will:

Issue a formal letter to the CoT stating the element, the current achievement and why the relevant period has been a challenge;

Propose a rectification action plant and reassess the commitment; Propose dates for the rectification; Agree rectification procedure with CoT

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