REQUEST FOR PROPOSAL ENTERPRISE RESOURCE PLANNING (ERP ...test.ecic.co.za/useruploads/files/ERP...
Transcript of REQUEST FOR PROPOSAL ENTERPRISE RESOURCE PLANNING (ERP ...test.ecic.co.za/useruploads/files/ERP...
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
1
REQUEST FOR PROPOSAL
ENTERPRISE RESOURCE PLANNING (ERP)
BID NUMBER:
CLOSING DATE FOR SUBMISSION:
TIME:
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
2
Table of Contents 1 Introduction .................................................................................................................................... 5
1.1 Background ............................................................................................................................. 5
1.2 Purpose ................................................................................................................................... 5
2 Scope of Services for the ERP Solution ........................................................................................... 5
2.1.1 Financial Management module ...................................................................................... 5
2.1.2 Human Resource Management module ......................................................................... 6
2.1.3 Procurement Management module ............................................................................... 6
2.1.4 Professional Services ....................................................................................................... 6
3 Submission of Tenders and Closing Date ........................................................................................ 6
3.1 Tender submission place and closing date ............................................................................. 6
3.2 Tender Submission Instructions (2 Envelope System) ............................................................ 7
3.2.1 ENVELOPE ONE – Technical Proposal ............................................................................. 7
3.2.2 ENVELOPE TWO – Price Proposal .................................................................................... 7
4 Preparation of Responses ............................................................................................................... 8
5 Evaluation Criteria ........................................................................................................................... 8
5.1 Technical Evaluation Criteria .................................................................................................. 8
5.1.1 Part 1 –Evaluation of Mandatory Documents Criteria .................................................... 8
5.1.2 Part 2- Functional Criteria ............................................................................................... 9
5.1.3 Part 3 System Specifications Criteria ............................................................................ 10
5.1.4 Part 4 Proof of Concept (POC) Presentation and Risk Assessment .............................. 11
5.2 Price Evaluation Criteria ........................................................................................................ 11
6 Briefing Session ............................................................................................................................. 12
7 Proposal Response Format ........................................................................................................... 12
8 Technical Proposal Response Format ........................................................................................... 13
8.1 Standard Bidding Documents & Forms (Section 1 of the Technical Proposal) ..................... 13
8.1.1 Invitation to Bid Form – SBD1 ....................................................................................... 13
8.1.2 Declaration of Interest Form – SBD4 ............................................................................ 13
8.1.3 Declaration of Bidder’s past Supply Chain Management Practices – SBD 8 ................. 13
8.1.4 Certificate of Independent Bid Determination - SBD9 .................................................. 14
8.2 Executive Summary (Section 2 of Technical Proposal) ......................................................... 14
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
3
8.3 Company Background (Section 3 of the Technical Proposal) ............................................... 14
8.4 Track Record (Section 4 of the Technical Proposal) .............................................................. 14
8.5 Application Software (Section 5 of the Technical Proposal) ................................................. 14
8.6 Technical and Hardware Requirements (Section 6 of the Technical Proposal) .................... 15
8.6.1 Vendor Hosted Option (Section 6 of the Technical Proposal) ...................................... 15
8.7 Proposed Implementation Plan (Section 7 of the Technical Proposal) ................................ 16
8.7.1 General Implementation Approach (Section 7.1 of the Technical Proposal) ............... 17
8.7.2 Project Management Approach (Section 7.2 of the Technical Proposal) ..................... 17
8.7.3 Hardware, Software and Storage Design and Installation Consulting (Section 7.3 of the
Technical Proposal) ....................................................................................................................... 18
8.7.4 Data Conversion and Migration Plan (Section 7.4 of the Technical Proposal) ............. 18
8.7.5 Report Development (Section 7.5 of the Technical Proposal) ...................................... 18
8.7.6 Implementation and Training (Section 7.6 of the Technical Proposal) ........................ 18
8.7.7 Change Management Approach (Section 7.7 of the Technical Report) ....................... 19
8.7.8 System Documentation, manuals and Testing (Section 7.8 of the Technical Proposal)
20
8.7.9 Process Re-engineering Assistance (Section 7.9 of the Technical Proposal) ................ 20
8.7.10 Knowledge Transfer (Section 7.10 of the Technical Proposal) ..................................... 20
8.7.11 Other activities proposed by the Bidder and the Microsoft Project Plan (Section 7.11
of the Technical Proposal) ............................................................................................................ 20
8.8 Ongoing Support Services (Section 8 of the Technical Proposal) ......................................... 21
8.9 Personnel Plan, Experience and Qualifications (Section 9 of the Technical Proposal) ......... 21
8.10 Functional System Requirements (Section 10 of the Technical Proposal) ........................... 21
8.11 License and Maintenance Agreements (Section 11 of the Technical Proposal) ................... 23
8.12 Exceptions and Deviations (Section 12 of the Technical Proposal) ...................................... 23
8.13 Electronic Copy of the Technical Proposal (Section 13 of the Technical Proposal) .............. 23
9 Cost Proposal Response Format ................................................................................................... 24
9.1 Electronic Copy of the Price Schedule (Section 1 of the Price Proposal) .............................. 24
9.2 Standard Bidding Documents ............................................................................................... 25
9.2.1 Software Pricing Schedule – SBD 3.1 ............................................................................ 25
9.2.2 Professional Services Pricing Schedule – SBD 3.3 ......................................................... 25
9.2.3 Preference Points Claim Form SBD 6.1 ......................................................................... 25
10 Special Conditions of Contract .................................................................................................. 25
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
4
10.1 Scope of Agreement.............................................................................................................. 25
10.2 Professional Services Warranty ............................................................................................ 26
10.3 Pricing .................................................................................................................................... 27
10.4 Confidentiality ....................................................................................................................... 27
10.5 Title and Confidentiality ........................................................................................................ 27
10.6 Subcontractors ...................................................................................................................... 28
10.7 Approval of Sub-Contractor, Project Team and Project Manager Designation .................... 28
10.8 Assignments .......................................................................................................................... 28
10.9 Vendor as Independent Contractor ...................................................................................... 29
10.10 Warranty ........................................................................................................................... 29
10.11 Final Acceptance of the System ........................................................................................ 30
10.12 Standard Forms and Contracts ......................................................................................... 30
10.13 Advertisement ................................................................................................................... 30
10.14 Password Security ............................................................................................................. 31
10.15 Non-Performance Procedures .......................................................................................... 31
10.16 Replication of Software ..................................................................................................... 31
10.17 Project Schedule and Acceptance ..................................................................................... 31
10.18 Acceptance Testing ........................................................................................................... 31
10.19 Payment Terms ................................................................................................................. 33
10.20 Travel Expense Reimbursement ....................................................................................... 34
10.21 Conflict of Interest ............................................................................................................ 34
10.22 Intellectual Property ......................................................................................................... 34
11 ANNEXURE A – General Conditions of Contract ....................................................................... 35
12 ANNEXURE B – Bid Response Document – Technical Proposal ................................................ 51
13 ANNEXURE C – Bid Response Document – Price Proposal ....................................................... 52
14 ANNEXURE D – ERP Software and Implementation Services – Specifications.xlsx .................. 53
15 ANNEXURE E – ERP Software and Implementation Services– Price Schedule.xlsx................... 54
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
5
1 Introduction
1.1 Background
The Export Credit Insurance Corporation of South Africa (SOC) LTD (ECIC)1 is a
self-sustained state-owned entity listed under Schedule 3B of the Public Finance
Management Act. The mandate of the ECIC is to facilitate and encourage South
African export trade, by underwriting export credit loans and investments outside
the country, in order to enable South African contractors to win capital goods and
services contracts in countries outside South Africa. The ECIC is a registered short
term insurer under the Short Term Insurance Act and is subject to supervision and
regulation by the Financial Services Board.
The ECIC seeks to modernise and reduce the cost of its operations by automating
its business processes through a Business Process Management System (BPMS)
and upgrading its current financial system to an Enterprise Resource Planning
(ERP) solution. The ECIC expects that this IT Modernisation Project will result in
increased efficiency across the organisation.
1.2 Purpose
ECIC requests the services an ERP vendor to implement an ERP solution for the
ECIC covering its core components of financial management, Human resource
management and Procurement management.
The purpose of this document is to set out the terms of reference for an ERP
solution and seeks to establish to the greatest possible extent complete clarity
regarding the requirements for both parties to the agreement resulting from this
request for proposal.
2 Scope of Services for the ERP Solution
The scope of the services required for the ERP solution includes:
2.1.1 Financial Management module
Sourcing and installation of the Financial Management ERP module with the
following functionalities:
Accounts payable
Accounts receivable
Planning and budgeting
General Ledger
Bank reconciliation
1 Further information on the ECIC can be found at www.ecic.co.za
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
6
Cash management
Fixed assets
Grant or Project Accounting
2.1.2 Human Resource Management module
Sourcing and installation of the Human Resource Management ERP module with
the following functionalities:
Personnel management
Leave management
Payroll management
Organisational management
Performance management
Training management
2.1.3 Procurement Management module
Sourcing and installation of the Procurement Management ERP software modules
with the following functionalities:
Purchasing
Contract management
2.1.4 Professional Services
Provision of professional services as follows:
Definition of hardware specification and advise on installations
Project management
Data conversion and migration
Report development
Implementation and training services
Change management
System documentation and Testing
Knowledge transfer to ECIC staff
Ongoing support and maintenance of the ERP solution for a minimum period
of 5 years
3 Submission of Tenders and Closing Date
3.1 Tender submission place and closing date
Tender proposal must be received by ECIC no later than 17H00 on 7 November
2014.
Bids must be submitted by hand to:
Head: Procurement and Office Management
Export Credit Insurance Corporation of South Africa SOC LTD,
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
7
Block C7 & C8 Eco Origins Office Park,
349 Witch Hazel Avenue,
Highveld Ext 79,
Centurion
Bidders that choose to submit their bid documents before the closing date and time
may do so during working hours only (08:30-17:00).
It is the Bidder’s responsibility to ensure that their bid submissions reach the ECIC
before the bid closing times as no late submissions will be accepted.
Telegraphic, telephonic, telex, facsimile, e-mail and late tenders will not be
accepted. Bidders will be advised of the outcome by letter, facsimile or e-mail.
3.2 Tender Submission Instructions (2 Envelope System)
Bidders must submit their proposal and all supporting documentation in a sealed
envelope, clearly marked as follows:
3.2.1 ENVELOPE ONE – Technical Proposal
Bidders must submit one (1) signed, completed, original of the Technical Proposal,
seven (7) copies of the Technical Proposal together with eight (8) electronic
copies on a compact disk (CD) of the Technical Proposal. The envelope must
contain all information and documents relating to the tender. (Refer to list of
returnable documents). No pricing information must be included in Envelope
One.
3.2.2 ENVELOPE TWO – Price Proposal
Bidders must submit one (1) signed, completed, original Price Proposal (pricing
schedule/schedule of rates as applicable) , seven (7) copies of the Price Proposal
together with eight (8) electronic copies on a compact disk (CD) of the Price
Proposal.
Bidders are required to place the sealed ENVELOPE ONE together with the sealed
ENVELOPE TWO into one sealed envelope or container. The sealed envelope or
container must be marked for the attention of the Head: Procurement and Office
Management together with the following information:
BID REFERENCE NO: ________
ERP TECHNICAL and PRICE PROPOSALS
BIDDER’S NAME AND ADDRESS
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
8
The Price Proposal will only be opened and evaluated when the Bidder has successfully
met the minimum Technical Evaluation Criteria of the Technical Proposal as set out in
paragraph 5 below.
Bidders shall organise their response document and insert a table of contents as
specifically specified in paragraph 7 below and bind (ring bind or similar method) the
proposal documents. Bidders shall verify page numbers of their proposal, as ECIC will not
accept any liability with regard to any disputes arising from pages that are missing or
duplicated in the aforementioned documents.
Bidders are required to complete and sign all the Bid Response Documents (refer to the
Bid Response Document Checklist section 1.5 of the Annexure B:) and initial all pages,
drawings and brochures which are included in the reply as ECIC will not accept any liability
with regard to any disputes arising from pages that are missing or duplicated in the
aforementioned documents.
4 Preparation of Responses
Bidders shall bear all costs associated with preparation and submission of the proposal.
ECIC shall not be responsible or liable for any cost incurred during the bidding process.
5 Evaluation Criteria
This Tender will be evaluated using a two stage process. The First stage will comprise the
Technical Evaluation which will be based on the Technical Proposal whilst the second
Stage will comprise the Price Evaluation which will be based on the Price Proposal. It is
the Bidder’s responsibility to ensure that it has responded to both evaluation criteria.
Failure to meet the evaluation criteria may result in the Bidder being disqualified from
being appointed. Bidders must ensure that they have included all supporting
documentation, especially the documentation that may be required to support the
response to the evaluation criteria.
5.1 Technical Evaluation Criteria
The Technical Evaluation Criteria which will be based on the Technical Proposal and
will comprise four (4) parts.
5.1.1 Part 1 –Evaluation of Mandatory Documents Criteria
All Technical Proposals will be evaluated against the Mandatory Documents Criteria
Bidders must COMPLY WITH ALL the Mandatory Documents Criteria in order to
qualify for further evaluation.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
9
Proposals not meeting these requirements will be disqualified. Bidders should
acknowledge acceptance of these terms and complete the checklist in their RFP
response.
Mandatory Documents Criteria
Completed reference form for at least one ERP software installation for a
company of similar size and complexity (Refer section 4 of the Technical
Response).
Response to the RFP is submitted by the due date and time.
An authorized company officer completes and signs all the Standard Bidding
Documents for the Technical Proposal (section 1 of the Technical
Proposal) and the Price Proposal (section 2 of the Price Proposal).
The Bidder has completed all forms and questionnaires in the Bid Response
Documents and complied with all instructions of the RFP. Where the Bidder
has not complied with the instructions or has exceptions, such non-
compliance or exception is noted in section 1.5 Bid Response Document
Checklist of the Technical Proposal.
5.1.2 Part 2- Functional Criteria
Bidders complying with ALL the Mandatory Evaluation Criteria will be evaluated
against the Functional Criteria as set out below. Bidders must score 60 points or
more out of a total 100 points allocated for Functional Criteria. Bidders that score
less than 60 points will not be evaluated further. Bidders who obtain the required
threshold of 60 points or more will qualify for further evaluation.
The scoring criteria for purposes of awarding points for the functional criteria will be
as follows:
Criteria
No Functionality Criteria
Points
Allocated
1. Company Background
(Section 3 of Technical Proposal) 10
2. Track Record
(Section 4 of Technical Proposal) 10
3. Application Software
(Section 5 of Technical Proposal) 15
4. Technical and hardware Requirements
(Section 6 of Technical Proposal) 15
5. Proposed Implementation Plan
(Section 7 of Technical Proposal) 25
6. Ongoing Support Services
(Section 8 of Technical Proposal) 15
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
10
Criteria
No Functionality Criteria
Points
Allocated
7.
Personnel Plan, Experience and
Qualifications
(Section 9 of Technical Proposal)
10
Total points allocated for Functional Criteria 100 Points
5.1.3 Part 3 System Specifications Criteria
Bidders qualifying in Part 2 Functional Criteria will be evaluated against the
System Specification Criteria as set out below. Bidders must score 80 points or
more out of a total 100 points allocated for the System Specifications Criteria.
Bidders that score less than 80 points will not be evaluated further. Bidders who
obtain the required threshold points of 80 points or more will qualify for further
evaluation
The scoring criteria for purposes of awarding points for the ERP Specifications
Criteria will be as follows:
Criteria
No.
System Specification Criteria Points
Allocated
1 Financial management 45
1.1 Accounts payable 5
1.2 Accounts receivable 5
1.3 Planning and budgeting 5
1.4 General Ledger 10
1.5 Bank reconciliation 5
1.6 Cash management 5
1,7 Fixed assets 5
1.8 Grant and Project Accounting 5
2 Procurement or Supply Chain Management 10
2.1 Purchasing 5
2.2 Contract management 5
3 Human Resources Management 35
3.1 Personnel management 10
3.2 Leave management 5 3.3 Payroll management 5
3.4 Organisational management 5
3.5 Performance Management 5
3.6 Training management 5
4 General and technical 10
100
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
11
5.1.4 Part 4 Proof of Concept (POC) Presentation and Risk Assessment
Proof of Concept (POC)
Bidders qualifying in part 3 “System Specification Criteria” will be requested to
conduct a POC Presentation. The POC Presentation will be used to determine how
the solution complies with the system requirements. Bidders must score 80 points
or more out of a total 100 points allocated for the Proof of Concept. Bidders that
score less than 80 points will not be evaluated further. Bidders who obtain the
required threshold points of 80 points or more and pass the Risk Assessment
review will qualify for Price Evaluation Criteria. The evaluation criteria for Proof of
Concept will be as follows:
Criteria
No.
Proof of Concept Criteria Points
Allocated
1 Functionality of Software 40
3 Quality of reports produced by the system 30
4 Ease of Use 30
100
Bidders will be expected to select and prepare a POC presentation for ONE (1)
functionally for EACH of the Financial Management, Human Resource and
Procurement modules.
Risk Assessment
In addition to Proof of Concept presentation, all bids that meet the minimum
qualifying score for Part 3: “System Specifications Criteria” will undergo a risk
assessment based on the following framework:
Any aspects that emanate from the Bidders individual responses
Any information received from past references
Acceptance of the Special Conditions of Contract as set out in paragraph
10 below and General Conditions of Contract as set out in Annexure A.
ECIC may disqualify bidders based on the outcome of the risk assessment and
Proof of Concept.
5.2 Price Evaluation Criteria
Bidders that successfully achieve minimum points for Technical Evaluation Criteria2
will qualify for evaluation of their Price Proposal. The Price Proposal will only be
opened and evaluated once the Technical Evaluation is completed. Bidder’s Price
2 Meeting all the requirements for Part 1, 2, 3 and 4 of the Technical Evaluation Criteria
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
12
proposals and BEE certificates will be ranked according to price and preference points
from the highest number of points to the lowest. The Bidder with the highest number of
points will be recommended for the award of the tender.
The 90/10 evaluation criteria will be followed for the purpose of this RFP. The B-BBEE
points will be awarded as per the rating certificate, the points for Joint ventures (JV) or
consortiums will be awarded based on the certificate of the JV or the consortium.
6 Briefing Session
Briefing session for this tender is compulsory: Bidders must ensure that they attend the
briefing session and sign the attendance register as non-attendance or failure to sign the
attendance register will automatically disqualify a bidder from submitting a proposal for this
Tender.
7 Proposal Response Format
To facilitate the analysis of responses to this RFP, the Bidder is required to prepare their
proposals in accordance with the instructions outlined in this section. Bidders must
respond in full to all RFP sections and follow the RFP format (section numbering,
etc.) in their response. Failure to follow these instructions may result in
disqualification.
For each question asked in the RFP, the proposer shall provide in their response,
the question asked and their answer using the section numbering of the RFP.
Proposals shall be prepared to satisfy the requirements of the RFP. EMPHASIS SHOULD
BE CONCENTRATED ON ACCURACY, COMPLETENESS, AND CLARITY OF
CONTENT. All parts, pages, figures, and tables should be numbered and labelled clearly.
The proposal should be organized as follows:
ENVELOPE ONE - TECHNICAL PROPOSAL
Section
Number Title
1. Standard Bidding Documents & Forms
2. Executive Summary
3. Company Background
4. Track Record - Vendor Evaluation Form
5. Application Software
6. Technical and Hardware Requirements
7. Proposed Implementation Plan
8. Ongoing Support Services
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
13
ENVELOPE ONE - TECHNICAL PROPOSAL
Section
Number Title
9. Personnel Plan, Experience and Qualifications
10. Functional System Requirements – (complete excel spreadsheet:
ERP Software and Implementation Services – Specifications.xlsx)
11. License structure
12. Exceptions and Deviations
13. Electronic Copy of technical Proposal
14. Document Checklist
ENVELOPE TWO - PRICE PROPOSAL
Section
Number
Title
1. Standard Bidding Documents
2. Electronic Copy of Price Proposal
3. Document Checklist
Instructions relative to each part of the response to this RFP are defined in paragraph 8
for Technical Proposal and paragraph 9 for Price Proposal below.
8 Technical Proposal Response Format
8.1 Standard Bidding Documents & Forms (Section 1 of the Technical Proposal)
8.1.1 Invitation to Bid Form – SBD1
Bidders should complete and sign this form. If the Bidder uses the services of
subcontractors or partners for the performance of services required, such
subcontractors/partners will be required to also sign the SDB1 form if their share of the
fee amounts to more than 40% of the total Bid price.
8.1.2 Declaration of Interest Form – SBD4
Bidders should complete and sign this form.
8.1.3 Declaration of Bidder’s past Supply Chain Management Practices – SBD 8
Bidders should complete and sign this form.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
14
8.1.4 Certificate of Independent Bid Determination - SBD9
Bidders should complete and sign this form.
8.2 Executive Summary (Section 2 of Technical Proposal)
This part of the response to the RFP should be limited to a brief narrative & not to exceed
two (2) pages describing the proposed solution. The summary should contain as little
technical jargon as possible and should be oriented toward non-technical personnel. The
executive summary should not include cost quotations.
8.3 Company Background (Section 3 of the Technical Proposal)
In addition to providing responses to the following items, the Bidder must complete section
3 of the Technical Proposal in the Bid Response Document. Bidders must provide
information about their company so that the ECIC can evaluate the Bidder’s stability and
ability to support the commitments set forth in response to the RFP. Information that
Bidders should provide in this section are as follows:
1. The company's background including a brief description (e.g., past history, present
status, future plans, company size, etc.) and organization charts.
2. Financial information for the past TWO (2) completed financial years that includes
income statements, balance sheets, and statement of cash flows.
3. If the Vendor is proposing to use subcontractors on this project, please provide
background information on each subcontractor, Vendor relationship with that firm
and the specific services and/or products that the subcontractor will be providing on
the project. A complete list of subcontractors is required. The ECIC has the right to
approve all sub-contractors of the Bidder at any time.
8.4 Track Record (Section 4 of the Technical Proposal)
The Bidder must provide at least three (3) references from clients that are similar in size
and complexity to the ECIC. The format for completing the client references is provided in
section 4 of the Technical Proposal in the Bid Response Document.
8.5 Application Software (Section 5 of the Technical Proposal)
As the ECIC is contemplating an ECIC-hosted versus vendor-hosted solution, aspects of
the proposed solution to be provided should be clearly delineated where they vary
between these two approaches in the sections below. The Bidder is required to provide a
general description of the application program product and how it will meet requirements of
this RFP. This section must address, at a minimum, the following items:
1. Describe your overall proposed technology solution.
2. Describe the product direction for the company, including time frames.
3. Describe unique aspects of the Bidder’s solution in the marketplace.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
15
4. Describe components of the solution that are industry standards versus being
proprietary to the Bidder.
5. For third party products proposed that are integrated with the Bidder’s solution
provide the following for each product:
a. Reason that this product is a third-party product versus being part of the
software Bidder’s solution,
b. Extent to which this third-party product is integrated with the Bidder’s
solution.
Bidders must complete Section 5 of the Technical Proposal in the Bid Response
Document
8.6 Technical and Hardware Requirements (Section 6 of the Technical Proposal)
The Bidder shall provide the information described in this section and complete Section 6 of the technical Proposal in the Bid Response Document. This information will be used in the evaluation process. As the ECIC is contemplating a ECIC-hosted versus vendor-hosted solution, aspects of the proposed solution to be provided should be clearly delineated where they vary between these two approaches for each of the following.
Hardware and Storage Environment a. Describe the proposed computer hardware and storage environment to
support the system. In the event that there are multiple computer systems available, list all options. Indicate which is the preferred hardware platform and why. List the conditions in which the preferred hardware platform would change. A hardware configuration, which takes into account the size of the ECIC, application modules, database size, and anticipated growth, must be provided.
b. What system architecture do you propose? Describe the number and type of: application servers, database server(s), and development and test environments. Describe your proposal’s technical architecture (preferably using a PowerPoint or Visio diagram). This should show components such as the database server, applications server, reporting server, test/training server, firewall(s), web server(s), web browser, minimum workstation requirements, remote access, wireless connectivity, network connectivity to LAN and WAN, etc. Describe any potential use of virtual server technologies (e.g. Microsoft Virtual Server, VMware) and application accelerators and note what Vendors you partner with or recommend and/or support.
c. Describe your proposed information architecture/model (preferably using a PowerPoint or Visio diagram). This should depict data models, taxonomy, data elements, coding structures, a process for standardizing on a particular coding structure, data definitions (employees, Vendors, invoices, etc.)
8.6.1 Vendor Hosted Option (Section 6 of the Technical Proposal)
Note: response to this section is optional. Bidders will not be penalized for lack of response to this section.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
16
In addition to providing responses to the following items, the Vendor must complete the Section 6.1 of the Technical Proposal in the Bid Response Document.
1. Please describe your vendor hosted model, including: hosting, integration, help desk, provisioning and desktop management capabilities, deployment model (dedicated servers, shared environment, etc.), impact to ECIC’s network and bandwidth, and any partners that may be involved in service delivery.
2. Please describe your proposed service level agreement, including any tiered levels of service, response times, and standard metrics.
3. Please describe your support model, including: cost structure for support calls. 4. Please describe your data center and storage facilities, including: locations,
staffing, physical security, environmental controls (including redundant power), redundancy/load balancing capabilities, data backups and disaster recovery capabilities.
5. Please describe your logical security, including: firewall security, authentication controls, and data encryption capabilities.
6. Please describe your change management, upgrade, and patch management policies & practices?
7. Describe your systems administration/management capabilities including: monitoring of performance measures, intrusion detection, and error resolution.
8. Describe how you will help the ECIC move to a new operation at the end of the contract term or if the contract is terminated, including the process for notifying of termination.
9. Please provide a copy of your most recent SAS70 audit.
8.7 Proposed Implementation Plan (Section 7 of the Technical Proposal)
The Bidder is to provide an implementation plan in narrative format supported by an
activity-level project plan using Microsoft Project that details how the proposed solution is
to be implemented. This implementation plan should include the following elements:
Item
No.
Title Points
Allocated
7.1 General Implementation approach 5
7.2 Project management approach 5
7.3 Definition of hardware specification and advice on installations 5
7.4 Data conversion and migration 5
7.5 Report development 5
7.6 Implementation and training services 3
7.7 Change management 2
7.8 System documentation and Testing 2
7.9 Process re-engineering assistance 2
7.10 Knowledge transfer to ECIC staff 2
7.11 Other activities proposed by the Bidder and the Microsoft Project
plan
4
Total Points allocated to the Proposed Implementation Plan 40
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
17
The Bidder should not be constrained to only include the above items in the Bidder’s
proposal response if the Bidder feels that additional elements may add value to the overall
implementation. The ECIC requests that the Bidder provide their work plan in a Microsoft
Project format as part of the proposal response to be included in the Electronic Copy of the
Technical Proposal.
It is expected that the Bidder will lead the efforts in each of the implementation
areas described below unless stated otherwise. Further details on what is to be
provided as part of the Bidder’s proposed implementation plan are included in the following
subsections.
As the ECIC is contemplating an ECIC-hosted versus vendor-hosted solution, aspects of
the services to be provided should be clearly delineated where they vary between these
two approaches.
8.7.1 General Implementation Approach (Section 7.1 of the Technical Proposal)
Provide a general overview of the implementation approach you plan to use for the ECIC
that includes addressing the following items:
1. Describe how you transition from the sales cycle to the implementation phase of the
project.
2. Describe key differentiators of the approach as it relates to implementing a solution
on time, within budget and with the ability to meet the needs of a diverse client like
ECIC.
3. Describe how you conclude on a preferred implementation phasing of software
modules. What is your recommended approach for this implementation?
4. Describe your approach towards running parallel systems for a period of time.
8.7.2 Project Management Approach (Section 7.2 of the Technical Proposal)
Provide an overall description of the Bidder’s project management approach towards this
type of engagement and projected timing for major phases. Provide a high-level work plan
for achieving the successful deployment of your proposed system. The ECIC expects the
Bidder to provide project management resources leading to the successful deployment of
the system. This project manager will work as a team member with ECIC’s project
management team. This project manager can be an employee of the Bidder or a partner
of the Bidder. In either case, the costs for the project manager should be clearly denoted in
the pricing section of the Price Proposal.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
18
8.7.3 Hardware, Software and Storage Design and Installation Consulting (Section
7.3 of the Technical Proposal)
The ECIC usually installs the required hardware and communications equipment for
applications. We are open to other proposals to accomplish a successful deployment. The
Bidder is expected to specify, furnish, deliver, install and support all application and
system software that may include pre-installing or equipment staging. What do you
propose for the most effective deployment of hardware, communications and related
equipment?
8.7.4 Data Conversion and Migration Plan (Section 7.4 of the Technical Proposal)
It is anticipated that data conversion will occur when migrating to the new application. The
Bidder is expected to assist the ECIC in the conversion of both electronic and manual data
to the new system. It is expected that the ECIC will be responsible for data extraction from
current systems and data scrubbing and data pre-processing and that the Bidder will be
responsible for overall data conversion coordination, definition of file layouts, and data
import and validation into the new ERP. Please provide pricing for data conversions in the
associated Microsoft Excel pricing spreadsheet to be submitted as part of the electronic
copy of the Price Proposal.
1. Describe your general approach towards data conversion and how you would work
with the ECIC to conclude on what should be converted.
2. Please describe your organization’s recommended approach toward retention of
legacy data.
8.7.5 Report Development (Section 7.5 of the Technical Proposal)
For specific reporting requirements, it is anticipated that the Bidder will take the lead on
developing any reports required as part of the initial deployment of the system. The Bidder
is expected to provide specialized knowledge and information to the ECIC staff during the
development of needed reports, via technical training on the tools used for report
development, database schema and architecture, etc.
Provide information on your reporting approach including:
1. Description of various methods of reporting including Business Intelligence,
2. Methods for the ECIC to identify, specify, and develop required custom reports
during the implementation.
8.7.6 Implementation and Training (Section 7.6 of the Technical Proposal)
The ECIC intends to explore the advantages, disadvantages and related costs of two
implementation training approaches:
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
19
1. End User Training Approach: All end-user and technical training will be performed
on-site through implementation and be performed by the Bidder.
a. End user implementation training will be provided by the Bidder and include
joint participation by the relevant ECIC process owner team lead supporting
the process area in the new software system.
b. Technical Implementation training will include training for ECIC IT staff on the
technologies required to support the new ERP system.
2. Train the Trainer Approach: The Vendor will incorporate a “train the trainer”
approach where only key ECIC team leaders will be trained through implementation
on their modules and then they will train the remainder of the ECIC staff in their
respective areas.
a. There would be roughly 1-2 subject matter experts (SME’s) for each module
including one team leader. This training would be provided at ECIC facility.
b. Training materials supplied by the Bidder would be used by SME’s and team
leaders for training their staff.
c. Web conference or remote online tutorial sessions would be available to
SME and team lead staff to participate in after initial training was completed
in their module.
d. Technical implementation training will include training only key IT staff (2-3)
to support
The Bidder should provide an overall description of both training methods, including the
following:
General timeframes in which both types of training will be conducted
The Bidder must list the nature, level, and amount of training to be provided
for both options in each of the following areas:
Technical training (e.g., programming, operations, etc.)
User training
Other staff (e.g., executive level administrative staff)
8.7.7 Change Management Approach (Section 7.7 of the Technical Report)
The ECIC recognizes that a movement from the current environment to a new solution will
present change management challenges. The Bidder should clearly identify their approach
towards Change Management including any unique approaches, processes, or tools that
will be used.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
20
8.7.8 System Documentation, manuals and Testing (Section 7.8 of the Technical
Proposal)
The Bidder is expected to provide user manuals and online help for use by the ECIC as
part of the initial training and on-going operational support. Additionally, the ECIC is
expected to provide technical documentation.
1. Describe what documentation (user guide, technical guide, training materials, etc.)
is available on the system proposed and any related costs.
2. Describe what types of documentation you anticipate developing during the course
of the project.
The Bidder should also describe their recommended approach to the following types of testing that are anticipated to be performed on the project and the type of assistance they anticipate providing to the ECIC related to such testing:
1. System testing
2. Integration testing (in relation to the ERP modules)
3. Stress/performance testing
4. User acceptance testing (UAT)
8.7.9 Process Re-engineering Assistance (Section 7.9 of the Technical Proposal)
With the deployment of a new application, the ECIC wishes to take advantage of
capabilities within the software that provide support for operational improvements. Bidders
are requested to describe their approach towards process redesign including discussion
on the optimal time in which to conduct redesign as it relates to implementation of the new
software.
In addition, please describe your organization’s capabilities to assist in a ECIC wide
redesign of the chart of accounts to best leverage the capabilities of the system in order to
meet the ECIC’s overall financial tracking and reporting objectives.
8.7.10 Knowledge Transfer (Section 7.10 of the Technical Proposal)
The Bidder should describe their process for ensuring that a transfer of knowledge occurs
back to ECIC such that staff is capable of supporting and maintaining the application in the
most proficient manner once the implementation engagement is complete.
8.7.11 Other activities proposed by the Bidder and the Microsoft Project Plan
(Section 7.11 of the Technical Proposal)
Details of additional elements that the Bidder feels may add value to the overall
implementation.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
21
The ECIC requests that the Bidder provide their work plan in a Microsoft Project format as
part of the proposal response to be included in the Electronic Copy of the Technical
Proposal.
8.8 Ongoing Support Services (Section 8 of the Technical Proposal)
Please specify the nature and conditions of any post-implementation support options including:
a. Post-go live support that is included in the proposal response b. Onsite support (e.g. system tuning, application configuration, interface
issues, report development, network optimization, user training and tips to optimize the user experience)
c. Telephone support, d. Help Desk services (If there is a service level agreement for your help desk,
please provide a copy with your RFP response.) e. Toll-free support line f. Users group (i.e. - information about it, where it is held and when. If no, are
you planning one? g. Online knowledge base (i.e. – how it accesses, who updates it, etc.)
8.9 Personnel Plan, Experience and Qualifications (Section 9 of the Technical
Proposal)
The Bidder must detail the type and amount of implementation support to be provided (e.g., number of personnel, level of personnel, time commitment, etc.). Include CVs for all personnel that will be assigned to the project. If the Bidder is using a subcontractor, please include information on subcontracting staff being used and their specific role on the project. Please provide an overall project organizational structure for both ECIC and Bidder’s staff involvement during the project (for both an ECIC-hosted and vendor-hosted solution). Identify the roles and responsibilities of each component of this structure. This includes an appropriate governance structure in which to manage the project.
8.10 Functional System Requirements (Section 10 of the Technical Proposal)
The requirements defined in this section contain the overall general functions of the
requested software solution. The primary objective of the ECIC in implementing a new
system is to provide a more integrated information system environment that will eliminate
the redundant entry of data, provide improved system capabilities, provide improved
access to data, and streamline overall operations.
Attached to this RFP is an Excel spreadsheet (version 2010) “ERP Software and
Implementation Services – Specifications.xls” which details a number of requirements
that must be addressed by the Bidder’s proposal. The Bidder is expected to complete the
excel spread sheet having followed the instructions below.
These requirements set out in the excel spreadsheet are considered mandatory in
implementing the complete solution as defined in section 5 – Application Software.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
22
Together they define a system that will operate efficiently in the proposed computer
environment while providing a high level of flexibility in meeting the ECIC’s current and
future data needs. Bidders must replace cells A1:G1 in the first excel sheet (General and
Technical) with the Bidder’s Company Name which will be repeated and printed for each
subsequent module.
The Priority column includes one of the following entries to indicate the importance of the
specification/report to ECIC:
“H” – High:
An absolutely necessary feature to be gained from the implementation of a new system.
This would be a feature that ECIC already has and uses in its current software, is available
and/or tracked in a shadow system (i.e., spreadsheet, document, etc.)
“M” – Medium:
This is a feature that the ECIC would like in the new system that is not currently being
tracked or is not existing functionality.
“L” – Low:
This would be a feature that, while of interest, is not applicable at this time or something
that could be a future deployment.
Each Bidder should review the specifications and reports listed in each subsection and
respond as to their availability within the Bidder’s software system. The responses should
be entered under the “Availability” column of each form as follows:
Flag Description
Y Functionality is provided out of the box through the completion of a task associated with a routine configurable area that includes, but is not limited to, user-defined fields, delivered or configurable workflows, alerts or notifications, standard import/export, table driven setups and standard reports with no changes. These configuration areas will not be affected by a future upgrade. The proposed services include implementation and training on this functionality, unless specifically excluded in the scope of work, as part of the deployment of the solution.
R Functionality is provided through reports generated using proposed Reporting Tools.
M Functionality is provided through customization to the application, including creation of a new workflow or development of a custom interface that may have an impact on future upgradability.
T Functionality is provided by proposed third party functionality (i.e., third party is defined as a separate software vendor from the primary software vendor). The pricing of all third party products that provide this functionality MUST be included in the Price Proposal.
F Functionality is provided through a future general availability (GA) release that is scheduled to occur within 1 year of the proposal response.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
23
Flag Description
N Functionality is not provided
8.11 License and Maintenance Agreements (Section 11 of the Technical Proposal)
Sample license and maintenance agreements must be provided in this part of the
Bidder’s response for all components of the recommended solution (i.e., hardware,
software, operating system, database, etc.). Indicate the basis on how licenses are
determined.
8.12 Exceptions and Deviations (Section 12 of the Technical Proposal)
If the Bidder finds it impossible or impractical to adhere to any portion of these
specifications and all attachments, it shall be so stated in its proposal, with all
deviations grouped together in a separate section entitled, “exceptions/deviations from
proposal requirements.” This section will be all-inclusive and will contain a definition
statement of each and every objection or deviation with adherence to specific RFP
sections. Objections or deviations expressed only in other parts of the proposal, either
directly or by implication, will not be accepted as deviations, and the Bidder in
submitting a proposal, will accept this stipulation without recourse.
8.13 Electronic Copy of the Technical Proposal (Section 13 of the Technical
Proposal)
The Bidder is required to submit a Compact Disk (CD) which must contain:
1. PDF copy of the Technical Proposal
2. The proposed project plan on Microsoft Project as outlined in paragraph
8.7.11 above in relation to section 7.11 of the Technical Proposal
3. A Powerpoint or Visio diagram of the Technical Architecture as required in
paragraph 8.6 above (in relation to section 6 of the Technical Proposal)
4. A Powerpoint or Visio diagram of the Information Architecture as required in
paragraph 8.6 above (in relation to section 6 of the Technical Proposal)
5. The completed copy of the ERP Software and Implementation Services -
Specifications.xlsx file as required in paragraph 8.10 above (in relation to
section 10 of the Technical Proposal)
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
24
9 Cost Proposal Response Format
9.1 Electronic Copy of the Price Schedule (Section 1 of the Price Proposal)
Costs for the Vendor’s proposed solution should be submitted on the proposal pricing schedules provided in the associated Microsoft Excel pricing spreadsheet.
The ECIC will not consider time and materials pricing. Vendors shall provide firm and fixed pricing based on the functionality described. For each item, indicate if the cost is one-time, annual, or other.
The Bidder shall provide price information for each separate component of the proposed solution, as well as the costs of any modifications necessary to fully comply with the RFP specifications.
In the event the product or service is provided at no additional cost, the item should be noted as "no charge" or words to that effect.
In the event the product or service is not being included in the Vendor proposal, the item should be noted as "No Bid".
Bidders shall provide all pricing alternatives in the excel cost sheets.
Vendor shall provide prices in South African Rand.
Vendor shall make clear the rationale and basis of calculation for all fees.
Vendors shall show separate subtotals for the required elements of the proposed solution, and for any layers of optional elements.
In presenting software license fees, the Bidders shall:
o Explain all factors that could affect licensing fees;
o Make clear what type of license is offered for each price (named user, concurrent user, installed copies, processor-based, etc.);
o Indicate which product versions, operating platform(s), and machine classes are included for each price;
o Indicate whether a product is for “server” or “client,” as applicable; and,
o Make clear the extent of any implementation services that are included in the license fees (installation, configuration, training, etc.)
To the extent possible, Bidders shall show any applicable discounts separately from the prices for products and services.
The ECIC prefers that Bidders provide separate prices for each item in the proposed solution. However, the Bidder is also encouraged to present alternatives to itemized costs and discounts, such as bundled pricing, if such pricing would be advantageous to the ECIC.
The ECIC reserves the right to pursue direct purchase of all items and services proposed.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
25
The ECIC is strongly considering both a vendor-hosted solution through an ASP or SaaS licensing model and a traditional on-premise solution. As such, the ECIC is requesting proposals to include detailed information regarding the Bidder’s hosting and licensing options. If multiple solutions are proposed, please include a separate pricing schedule for each hosting/licensing model.
9.2 Standard Bidding Documents
9.2.1 Software Pricing Schedule – SBD 3.1
The Bidder is required to complete software price schedule with the total bid price
for the software excluding discounts.
9.2.2 Professional Services Pricing Schedule – SBD 3.3
The Bidder is required to complete professional services price schedule with the
total bid price for the software excluding discounts.
9.2.3 Preference Points Claim Form SBD 6.1
This preference form must form part of all bids invited. It contains general
information and serves as a claim form for preference points for Broad-Based Black
Economic Empowerment (B-BBEE) Status Level of Contribution
10 Special Conditions of Contract
The ECIC will enter into a Service Level Agreement which will be fully negotiated after a
Bidder is selected. Responses to the terms outlined herein may be considered in the
selection process and such terms shall be included in the final Agreement. The term
“Agreement” or “this Agreement” shall mean the final contract between the ECIC and the
selected bidder (the “Vendor”), which shall include these terms and conditions and all
exhibits and attachments thereto.
The following Conditions of Contract substantially in the form contained in this paragraph
10 (“Special Conditions of Contract”) as well the General Conditions of Contract
attached as Annexure A, are expected to be agreed to by the Bidders as part of contract
negotiations. Exceptions must be explicitly noted in section 12 Exceptions and
Deviations of the Technical Proposal in the checklist forms provided. Lack of exceptions
listed on the checklist shall be considered acceptance of all of the terms and conditions as
presented in this RFP.
10.1 Scope of Agreement
ECIC agrees to license the Software and receive the services detailed in
Attachment <__>. Service Provider agrees to provide same, subject to the terms
and conditions stated in this Agreement and Attachment <__>. Payment for such
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
26
services shall be per Attachment <__>. The ECIC, without prior and mutual written
agreement, will incur no other service costs. The service costs in Attachment <__>
are inclusive of project management services and include turn-key data conversion,
chart of accounts design assistance, software configuration, formal Acceptance
testing (see clause herein), and initial account balancing. The implementation of the
Software and provision of services shall be per Attachment <__>. ECIC agrees to
provide server and desktop hardware configured per Attachment <__> based on
Vendor’s recommendation.
10.2 Professional Services Warranty
A. The Vendor agrees at all times to maintain an adequate staff of experienced and qualified employees for efficient performance under this Agreement. The Vendor agrees that, at all times, the employees of Vendor furnishing or performing any services shall do so in a proper, workmanlike, and dignified manner.
B. The Vendor agrees that all persons working for or on behalf of Vendor whose duties bring them on ECIC’s premises shall obey the rules and regulations that are established by the ECIC and shall comply with the reasonable directions of the ECIC’s officers. The ECIC may, at any time, require the removal and replacement of any of Vendor's employees for good cause.
C. The Vendor shall be responsible for the acts of its employees and agents while on the ECIC’s premises. Accordingly, Vendor agrees to take all necessary measures to prevent injury and loss to persons or property located on the ECIC’s premises. Vendor shall be responsible for all damages to persons or property caused by Vendor or any of its agents or employees. Vendor shall promptly repair, to the specifications of the ECIC, any damage that it, or its employees or agents, may cause to the premises or equipment of the ECIC. Should the Vendor fail to do so, the ECIC may repair or replace such damaged equipment and the Vendor shall promptly reimburse such cost of repair or replacement incurred by the ECIC.
D. The Vendor agrees that, in the event of an accident of any kind, Vendor will immediately notify the ECIC contact person and thereafter, if requested, furnish a full written report of such accident.
E. The Vendor shall perform the services contemplated in the Agreement without interfering in any way with the activities of the ECIC’s staff or visitors.
F. The Vendor and its employees or agents shall have the right to use only those facilities of the ECIC that are necessary to perform services under this Agreement and shall have no right to access any other facilities of the ECIC. The ECIC shall also extend parking privileges to properly identified members of Vendor's full-time staff on the same basis as they are extended to the ECIC’s staff.
G. The ECIC shall have no responsibility for the loss, theft, mysterious disappearance of, or damage to equipment, tools, materials, supplies, and other personal property of the Vendor or its employees, subcontractors, or equipment-suppliers.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
27
10.3 Pricing
All prices for the Vendor's services as per Annexure C are for the term of the
Agreement. The ECIC shall pay Vendor for satisfactory performance of the service
specified in this Agreement, the sums in accordance with your reply to our RFP,
and any related addenda.
10.4 Confidentiality
Both parties recognize that their respective employees and agents, in the course of
performance of this Agreement, may be exposed to confidential information and
that disclosure of such information could violate rights to private individuals and
entities. Each party agrees that it will not disclose any confidential information of the
other party and further agrees to take appropriate action to prevent such disclosure
by its employees or agents. The confidentiality covenants contained herein shall
survive the termination or cancellation of this Agreement. This obligation of
confidentiality shall not apply to (a) information that at the time of the disclosure is in
the public domain; (b) information that, after disclosure, becomes part of the public
domain by publication or otherwise, except by breach of this Agreement by a party;
(c) information that a party can establish by reasonable proof was in that party’s
possession at the time of disclosure; (d) information that a party receives from a
third party who has a right to disclose it to that party; or (e) information that is
subject to requests under Promotion of Access to Information Act, 2000 (PAIA).
10.5 Title and Confidentiality
Title and full rights to the Software licensed under this Agreement, including, without
limitation, all intellectual property rights therein and thereto, and any copies ECIC
make, remain with Vendor. It is agreed the Software is the proprietary, confidential,
trade secret property of Vendor, whether or not any portions thereof are or may be
copyrighted, and ECIC shall take all reasonable steps necessary to protect the
confidential nature of the Software, as ECIC would take to protect its own
confidential information. ECIC further agrees that it shall not make any disclosure of
any or all such Software (including methods or concepts utilized therein) to anyone,
except to its directors, employees, agents, auditors, consultants, subcontractors &
any party to whom such disclosure is necessary to the use for which rights are
granted hereunder.
ECIC shall appropriately notify all its directors, employees, agents, auditors and
subcontractors to whom any such disclosure is made that such disclosure is made
in confidence and shall be kept in confidence by them. The obligations imposed by
this section upon ECIC, its employees, agents, and subcontractors, shall survive
and continue after any termination of rights under this Agreement. It shall not be a
breach of this agreement if ECIC is required to disclose or make the Software
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
28
available to a third party or to a court if the Software is required to be disclosed
pursuant to PAIA, or is subpoenaed or otherwise ordered by an administrative
agency or court of competent jurisdiction to be produced.
10.6 Subcontractors
The Vendor may use subcontractors in connection with the work performed under
this Agreement. When using subcontractors, however, the Vendor must obtain
written approval from the ECIC. In using subcontractors, the Vendor agrees to be
responsible for all of their acts and omissions to the same extent as if the
subcontractors were employees of the Vendor.
10.7 Approval of Sub-Contractor, Project Team and Project Manager Designation
The Vendor understands that the successful installation, testing, and operation of
the system that is the subject of this Agreement shall be accomplished by a
cooperative effort. To most effectively manage this process, the Vendor shall
designate a single representative to act as an ex-officio member of the ECIC’s
project management team and who shall have the authority to act on behalf of the
Vendor on all matters pertaining to this Agreement.
The ECIC shall have the right to approve all subcontractors, Account / Project
Manager, and staff assigned to the project by the Vendor. In the event that an
employee of the Vendor is, in the opinion of the ECIC, uncooperative, inept,
incompetent, or otherwise unacceptable, the Vendor agrees to remove such person
from the project. In the event of such a removal, the Vendor shall, within fifteen (15)
days, fill this representative vacancy as described above. Regardless of whom the
Vendor has designated as the representative, the Vendor organization remains the
ultimate responsible party for performing the tasks and responsibilities presented in
this Agreement.
10.8 Assignments
This Agreement or any part thereof shall not be assigned or subcontracted by the
Vendor without the prior written permission of the ECIC; any attempt to do so
without said prior permission shall be void and of no effect.
The Vendor agrees not to assign, transfer, convey, sublet, or otherwise dispose of
the Agreement or any rights, title, or interest created by the Agreement without the
prior consent and written approval of the ECIC.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
29
10.9 Vendor as Independent Contractor
It is expressly agreed that the Vendor is an independent contractor and not an
agent of ECIC. The Vendor shall not pledge or attempt to pledge the credit of ECIC
or in any other way attempt to bind the ECIC.
The relationship of the Vendor to ECIC shall be that of an independent contractor
and no principal/ agent or employer-employee relationship is created by the
Agreement.
10.10 Warranty
A. Vendor represents and warrants that it has the right to grant the licenses set forth under this Agreement. Vendor further represents and warrants that it has good and marketable title to the Software and any Equipment sold hereunder free and clear from all liens, encumbrances, and claims of infringement of patent, copyright, trade secret or other proprietary rights of third parties. Vendor further represents and warrants that neither the Software in the form delivered by Vendor to ECIC, nor any modifications, enhancements, updates or upgrades thereto, nor the normal use thereof by ECIC, will infringe any patent, copyright, trademark, trade secret or other proprietary right of any third party.
B. In the event that any third party makes a claim or files a lawsuit challenging ECIC’s right to use the Software or Equipment, Vendor shall defend and indemnify ECIC and hold it harmless for any and all losses, liabilities, judgments, damages, awards and costs (including legal fees and expenses) arising out of said claim or lawsuit, and for any monies paid in settlement thereof. In resolving any such infringement claim, Vendor shall, in its reasonable discretion, either procure a license to enable ECIC to continue to use the Software or develop or obtain a non-infringing substitute acceptable to ECIC at Vendor’s cost.
C. Vendor represents and warrants that the Software and related products as described with this Agreement will perform in accordance with all Documentation, Contract Documents, Vendor marketing literature, and any other communications attached to or referenced in this Agreement.
D. Vendor represents and warrants that the Software and related products, including all modifications contracted under the terms of this Agreement, will meet the requirements of ECIC as set forth in the Bid Response Documents - Technical Proposal.
E. ECIC has: (i) presented detailed technical specifications of the particular purpose for which the System is intended and (ii) provided detailed descriptions and criteria of how the System can be defined to accomplish particular purpose. Given this advanced preparation concerning, and documentation about, ECIC’s particular purpose, Vendor, at the time this Agreement is in force, has (1) reason and opportunity to know the particular purpose for which the System is required, and (2) that ECIC is relying on Vendor’s experience and knowledge of the System to identify those components which are most suitable and appropriate. Therefore, Vendor warrants that the System and all products included in this Agreement are
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
30
fit for the purposes for which they are intended as described in the Bid Response Documents - Technical Proposal.
F. Vendor represents and warrants that all products provided under this Agreement are compatible with and certified for use and operation in ECIC’s operating environment. Furthermore, Vendor acknowledges that it has reviewed the hardware system ordered by ECIC and represents and warrants that such hardware system is sufficient for ECIC’s current and reasonably projected use, including account and transaction volumes.
10.11 Final Acceptance of the System
The system proposed shall be defined to be finally accepted by ECIC after the
installation of the equipment, training, and successful completion of the following
performance examinations: system hardware examination, software performance
examination, system functional competence examination, system capacity
examination, full-load processing capacity examination, system availability
examination, approval of as-builts, training, and system documentation. The ECIC
shall be the sole judge of whether all conditions for final acceptance criteria have
been met. Upon final acceptance, title to the system is deemed to be conveyed to
the ECIC.
10.12 Standard Forms and Contracts
Any forms and contracts the Vendor proposes to include as part of the Agreement
must be submitted as part of this proposal. Any forms and contracts not submitted
as part of the proposal and subsequently presented for inclusion may be rejected.
ECIC reserves the right to accept or reject in whole or in part any form contract
submitted by a vendor and/or to require that amendments be made thereto, or that
an agreement drafted by the ECIC be utilized. This requirement includes, but is not
limited to, the following types of forms: subcontractor, franchise, warranty
agreements, maintenance contracts, and support agreements. The ECIC will have
the right to negotiate any and all contracts/agreements and prices/fees with the
finalist bidder, if doing so is deemed in the best interest of the ECIC.
10.13 Advertisement
Vendor shall not use, in its external advertising, marketing programs, or other
promotional efforts, any data, pictures, or other representation of the ECIC unless
Vendor receives specific written authorization in advance from the ECIC. Vendor
will limit and direct any of its advertising on the ECIC’s premises and shall make
arrangements for such advertising. Vendor shall not install any signs or other
displays within or outside of the ECIC’s premises unless in each instance the prior
written approval of the ECIC has been obtained. However, nothing in this clause
shall preclude Vendor from listing the ECIC on its routine list for matters of
reference.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
31
10.14 Password Security
The Vendor warrants that no ‘back door’ password or other method of remote
access into the software code exists. The Vendor agrees that any and all access to
any software code residing on the ECIC server must be granted by the ECIC to the
Vendor, at its sole discretion.
10.15 Non-Performance Procedures
In the event that the ECIC determines that the Vendor is not performing in a manner
consistent with the intent and spirit of this Agreement or in a manner consistent with
commonly accepted business practices, then the ECIC shall have the right to do
any of the following: (a) formally notify Vendor of non-performance, (b) reserve the
right to withhold any and all payments pending, including support and maintenance
agreement fees, until the non-performance is corrected, (c) request a joint meeting
of Vendor and ECIC decision makers to attempt to resolve the non-performance, (d)
require a Vendor employee to be on-site at ECIC’s location until the non-
performance is resolved, (e) invoke the Termination clause herein.
10.16 Replication of Software
ECIC shall not copy Software for any purposes other than for back up or disaster
recovery. ECIC has the right to develop interfaces to, and/or database applications
that integrate with, the licensed Software using Vendor’s recommended database
and development tools without voiding the Support Agreement or warranties herein.
10.17 Project Schedule and Acceptance
Vendor will develop a detailed Project Schedule that details both Vendor and
ECIC’s responsibilities. The Project Schedule should be in sufficient detail to specify
the conversion, training, testing, acceptance, and live operation activities. Both
Vendor and ECIC agree that a mutually agreeable Project Schedule will be
submitted to and approved by the ECIC to be completed within ……. days of the
Effective Date. In the event that the Vendor is unable to provide the Project
Schedule within …… days, ECIC will have at its option, the ability to terminate the
Agreement and obtain all fees paid to Vendor. The Project Schedule will also
include the criteria by which the software will be tested and accepted by ECIC.
10.18 Acceptance Testing
For purposes of acceptance of the System (or portions thereof), the parties intend
to use the following staged acceptance procedure. All timeframes specified in the
following procedures may be overridden by the Project Schedule.
I. Written Deliverable: Vendor shall submit interim drafts (stamped, noted or otherwise clearly marked “Draft”) of a written deliverable to ECIC for review prior to approval. ECIC agrees to review and provide comments to Vendor on each interim draft within the agreed reasonable time after
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
32
receiving it from Vendor. Any proposed amendments to the written deliverable requested by the ECIC shall be promptly correct by the Vendor and returned to ECIC for Acceptance. ECIC will not unreasonably withhold, delay or condition its approval of a final written deliverable. Vendor is responsible for tracking status of each deliverable including but not limited to the date in which it was submitted to the ECIC and date returned.
II. Software Deliverable: Acceptance testing is an iterative process designed to determine whether the Software Deliverable performs the functions described in its approved Specifications and to discover and remove Defects through repeated testing cycles. “Specification” means the Project Scope and Requirements found at Exhibit “….” and any other written specifications delivered to the ECIC by the Vendor during the course of the project or the Application Software Documentation. In the event of conflicts between Specifications and Application Software Documentation the Specifications will prevail.
Vendor will work with the ECIC and make a good faith effort to develop a test plan with the requisite details, understanding the level of detail required may change depending on the complexity of the requested software deliverable and to test each software deliverable (the “Acceptance Tests” or “Acceptance Testing”).
a. The “Acceptance Test Period” for each Software Deliverable will be five (5) Business Days unless an alternate time is mutually agreed upon between Vendor and ECIC. The Acceptance Test Period for each Software Deliverable will start within five (5) Business Days, unless an alternate start date is mutually agreed upon by Vendor and ECIC, after the Software Deliverable is installed at ECIC’s designated site and Vendor has successfully completed Vendor’s installation test and notified ECIC that the Software deliverable is “Ready for Acceptance Testing.” Vendor will not be obligated to deliver a Software Deliverable to ECIC until ECIC demonstrates the readiness of the target technical platform and environment, as described in Exhibit “….”, and according to the Project Scope and Requirements.
b. If ECIC determines during the Acceptance Test Period that the Software Deliverable contains a Defect, ECIC will promptly send the Vendor a written notice reporting the alleged Defect describing it to the Vendor in sufficient detail reasonably necessary for Vendor to recreate it. Vendor will modify the Software Deliverable to remove the reported Defect and will provide the modifications to ECIC for re-testing. ECIC will then re-test the modified portions of the Software Deliverable promptly after receiving the modifications from Vendor. In such a case, Vendor and ECIC will mutually agree upon an updated Acceptance Test Period.
c. By the end of the Acceptance Testing Period ECIC will provide Vendor with a final written list reporting any outstanding Defects
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
33
(the “Snag List”). ECIC will have ten (10) Business Days after the receipt of the modifications to re-test the modified Software deliverable to confirm that the Defects that were reported on the Snag List have been removed. If any Defects that were reported on the Snag List have not been removed, ECIC will provide Vendor with written notification by the end of the retesting period reporting any such Defects. In such event, the procedures set forth in this paragraph will be repeated for the remaining Defects on the Snag List.
d. Vendor and ECIC each agrees to work diligently to achieve acceptance of Software Deliverable at the earliest possible date.
III. “User Acceptance Testing” shall mean testing of each Phase using the
process defined under Part <__> - Section <__>; provided, however, the Acceptance Test Period will be ……… days unless otherwise mutually agreed.
IV. “Conditional Acceptance” will occur upon the earlier of correction of Defects reported as part of User Acceptance Testing of the Phase, or Go-Live of the Phase. There will be a Conditional Acceptance for each Phase; Conditional Acceptance after the final Phase constitutes Conditional Acceptance of the entire Solution. Unless the Project Schedule determines otherwise, the Acceptance Test Period for User Acceptance Testing will be …….days, Vendor and ECIC will work diligently to put the Phase into Go Live operations.
V. “Final Acceptance” involves use of the Solution in totality in production operations for a period of ……….. days. It will include use of the Phases and/or the System previously tested and conditionally accepted. If after ………… days the Solution performs without Defects, the ECIC and the Vendor will both issue and execute a “Final Acceptance” of the Phase. The time frame for Final Acceptance will stop if Defects are found during production use and prevent further production use of the Solution. The Final Acceptance process will resume on the date the Defect is confirmed as fixed and will continue for the remainder of the Final Acceptance time frame. There will be a Final Acceptance for each Phase; Final Acceptance after the final Phase constitutes Final Acceptance of the entire Solution.
10.19 Payment Terms
Specific payment terms will be negotiated as part of the final contract. It is expected that
certain payments will be made upon delivery of the hardware and software with additional
payments made based on specific project milestones. Vendor shall submit to the ECIC for
its review a pay request in a form agreeable to the ECIC. The pay request shall be
accompanied by such supporting documentation as required by the ECIC.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
34
10.20 Travel Expense Reimbursement
All travel expense costs must be included in the Vendor’s fixed price cost. ECIC will not
make a separate payment for reimbursable expenses. ECIC shall not be liable for
additional travel costs incurred due for any reason outside ECIC’s control.
10.21 Conflict of Interest
The Vendor shall not employ as a director, officer, employee, agent, or subcontractor any
elected or appointed official of the ECIC or any member of his/her immediate family.
10.22 Intellectual Property
All information, data, programs, publications & media created specifically for and paid for by the
ECIC or as a result of the work identified in this Agreement is the property of the ECIC unless
otherwise noted, copyright protected, or defined or agreed to by both parties to this Agreement.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
35
11 ANNEXURE A – General Conditions of Contract
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
36
THE NATIONAL TREASURY
Republic of South Africa
GOVERNMENT PROCUREMENT:
GENERAL CONDITIONS OF CONTRACT
July 2010
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
37
GOVERNMENT PROCUREMENT
GENERAL CONDITIONS OF CONTRACT
July 2010
NOTES
The purpose of this document is to:
(i) Draw special attention to certain general conditions
applicable to government bids, contracts and orders; and
(ii) To ensure that clients be familiar with regard to the rights
and obligations of all parties involved in doing business
with government.
In this document words in the singular also mean in the plural
and vice versa and words in the masculine also mean in the
feminine and neuter.
The General Conditions of Contract will form part of
all bid documents and may not be amended.
Special Conditions of Contract (SCC) relevant to a specific
bid, should be compiled separately for every bid (if
(applicable) and will supplement the General Conditions
of Contract. Whenever there is a conflict, the provisions
in the SCC shall prevail
.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
38
TABLE OF CLAUSES
1. Definitions
2. Application
3. General 4. Standards
5. Use of contract documents and information; inspection
6. Patent rights
7. Performance security 8. Inspections, tests and analysis
9. Packing
10. Delivery and documents 11. Insurance
12. Transportation
13. Incidental services 14. Spare parts
15. Warranty
16. Payment
17. Prices
18. Contract amendments
19. Assignment
20. Subcontracts 21. Delays in the supplier’s performance
22. Penalties
23. Termination for default 24. Dumping and countervailing duties
25. Force Majeure
26. Termination for insolvency
27. Settlement of disputes
28. Limitation of liability
29. Governing language 30. Applicable law
31. Notices
32. Taxes and duties 33. National Industrial Participation Programme (NIPP)
34. Prohibition of restrictive practices
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
39
General Conditions of Contract
1. Definitions 1. The following terms shall be interpreted as indicated:
1.1 “Closing time” means the date and hour specified in the bidding
documents for the receipt of bids.
1.2 “Contract” means the written agreement entered into between the
purchaser and the supplier, as recorded in the contract form signed by
the parties, including all attachments and appendices thereto and all
documents incorporated by reference therein.
1.3 “Contract price” means the price payable to the supplier under the
contract for the full and proper performance of his contractual
obligations.
1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting
of any thing of value to influence the action of a public official in the
procurement process or in contract execution.
1.5 "Countervailing duties" are imposed in cases where an enterprise
abroad is subsidized by its government and encouraged to market its
products internationally.
1.6 “Country of origin” means the place where the goods were mined,
grown or produced or from which the services are supplied. Goods are
produced when, through manufacturing, processing or substantial and
major assembly of components, a commercially recognized new
product results that is substantially different in basic characteristics or
in purpose or utility from its components.
1.7 “Day” means calendar day.
1.8 “Delivery” means delivery in compliance of the conditions of the
contract or order.
1.9 “Delivery ex stock” means immediate delivery directly from stock
actually on hand.
1.10 “Delivery into consignees store or to his site” means delivered and
unloaded in the specified store or depot or on the specified site in
compliance with the conditions of the contract or order, the supplier
bearing all risks and charges involved until the supplies are so
delivered and a valid receipt is obtained.
1.11 "Dumping" occurs when a private enterprise abroad market its goods
on own initiative in the RSA at lower prices than that of the country of
origin and which have the potential to harm the local industries in the
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
40
RSA.
1.12 ”Force majeure” means an event beyond the control of the supplier and
not involving the supplier’s fault or negligence and not foreseeable.
Such events may include, but is not restricted to, acts of the purchaser
in its sovereign capacity, wars or revolutions, fires, floods, epidemics,
quarantine restrictions and freight embargoes.
1.13 “Fraudulent practice” means a misrepresentation of facts in order to
influence a procurement process or the execution of a contract to the
detriment of any bidder, and includes collusive practice among bidders
(prior to or after bid submission) designed to establish bid prices at
artificial non-competitive levels and to deprive the bidder of the
benefits of free and open competition.
1.14 “GCC” means the General Conditions of Contract.
1.15 “Goods” means all of the equipment, machinery, and/or other materials
that the supplier is required to supply to the purchaser under the contract.
1.16 “Imported content” means that portion of the bidding price represented
by the cost of components, parts or materials which have been or are
still to be imported (whether by the supplier or his subcontractors) and
which costs are inclusive of the costs abroad, plus freight and other
direct importation costs such as landing costs, dock dues, import duty,
sales duty or other similar tax or duty at the South African place of
entry as well as transportation and handling charges to the factory in
the Republic where the supplies covered by the bid will be
manufactured.
1.17 “Local content” means that portion of the bidding price which is not
included in the imported content provided that local manufacture does
take place.
1.18 “Manufacture” means the production of products in a factory using
labour, materials, components and machinery and includes other
related value-adding activities.
1.19 “Order” means an official written order issued for the supply of goods
or works or the rendering of a service.
1.20 “Project site,” where applicable, means the place indicated in bidding
documents.
1.21 “Purchaser” means the organization purchasing the goods.
1.22 “Republic” means the Republic of South Africa.
1.23 “SCC” means the Special Conditions of Contract.
1.24 “Services” means those functional services ancillary to the supply of
the goods, such as transportation and any other incidental services,
such as installation, commissioning, provision of technical assistance,
training, catering, gardening, security, maintenance and other such
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
41
obligations of the supplier covered under the contract.
1.25 “Written” or “in writing” means handwritten in ink or any form of
electronic or mechanical writing.
2. Application 2.1 These general conditions are applicable to all bids, contracts and orders
including bids for functional and professional services, sales, hiring,
letting and the granting or acquiring of rights, but excluding
immovable property, unless otherwise indicated in the bidding
documents.
2.2 Where applicable, special conditions of contract are also laid down to
cover specific supplies, services or works.
2.3 Where such special conditions of contract are in conflict with these
general conditions, the special conditions shall apply.
3. General 3.1 Unless otherwise indicated in the bidding documents, the purchaser
shall not be liable for any expense incurred in the preparation and
submission of a bid. Where applicable a non-refundable fee for
documents may be charged.
3.2 With certain exceptions, invitations to bid are only published in the
Government Tender Bulletin. The Government Tender Bulletin may be
obtained directly from the Government Printer, Private Bag X85,
Pretoria 0001, or accessed electronically from www.treasury.gov.za
4. Standards 4.1 The goods supplied shall conform to the standards mentioned in the
bidding documents and specifications.
5. Use of
contract
documents
and
information;
inspection.
5.1 The supplier shall not, without the purchaser’s prior written consent,
disclose the contract, or any provision thereof, or any specification,
plan, drawing, pattern, sample, or information furnished by or on
behalf of the purchaser in connection therewith, to any person other
than a person employed by the supplier in the performance of the
contract. Disclosure to any such employed person shall be made in
confidence and shall extend only so far as may be necessary for
purposes of such performance.
5.2 The supplier shall not, without the purchaser’s prior written consent,
make use of any document or information mentioned in GCC clause 5.1 except for purposes of performing the contract.
5.3 Any document, other than the contract itself mentioned in GCC clause
5.1 shall remain the property of the purchaser and shall be returned (all
copies) to the purchaser on completion of the supplier’s performance
under the contract if so required by the purchaser.
5.4 The supplier shall permit the purchaser to inspect the supplier’s records
relating to the performance of the supplier and to have them audited by
auditors appointed by the purchaser, if so required by the purchaser.
6. Patent rights 6.1 The supplier shall indemnify the purchaser against all third-party
claims of infringement of patent, trademark, or industrial design rights
arising from use of the goods or any part thereof by the purchaser.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
42
7. Performance security
7.1 Within thirty (30) days of receipt of the notification of contract award,
the successful bidder shall furnish to the purchaser the performance
security of the amount specified in SCC.
7.2 The proceeds of the performance security shall be payable to the
purchaser as compensation for any loss resulting from the supplier’s
failure to complete his obligations under the contract.
7.3 The performance security shall be denominated in the currency of the
contract, or in a freely convertible currency acceptable to the purchaser
and shall be in one of the following forms:
(a) a bank guarantee or an irrevocable letter of credit issued by a
reputable bank located in the purchaser’s country or abroad,
acceptable to the purchaser, in the form provided in the
bidding documents or another form acceptable to the
purchaser; or
(b) a cashier’s or certified cheque
7.4 The performance security will be discharged by the purchaser and
returned to the supplier not later than thirty (30) days following the
date of completion of the supplier’s performance obligations under the
contract, including any warranty obligations, unless otherwise
specified in SCC.
8. Inspections,
tests and
analyses
8.1 All pre-bidding testing will be for the account of the bidder.
8.2 If it is a bid condition that supplies to be produced or services to be
rendered should at any stage during production or execution or on
completion be subject to inspection, the premises of the bidder or
contractor shall be open, at all reasonable hours, for inspection by a
representative of the Department or an organization acting on behalf of
the Department.
8.3 If there are no inspection requirements indicated in the bidding
documents and no mention is made in the contract, but during the
contract period it is decided that inspections shall be carried out, the
purchaser shall itself make the necessary arrangements, including
payment arrangements with the testing authority concerned.
8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3
show the supplies to be in accordance with the contract requirements,
the cost of the inspections, tests and analyses shall be defrayed by the
purchaser.
8.5 Where the supplies or services referred to in clauses 8.2 and 8.3 do not
comply with the contract requirements, irrespective of whether such
supplies or services are accepted or not, the cost in connection with
these inspections, tests or analyses shall be defrayed by the supplier.
8.6 Supplies and services which are referred to in clauses 8.2 and 8.3 and
which do not comply with the contract requirements may be rejected. 8.7 Any contract supplies may on or after delivery be inspected, tested or
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
43
analyzed and may be rejected if found not to comply with the
requirements of the contract. Such rejected supplies shall be held at the
cost and risk of the supplier who shall, when called upon, remove them
immediately at his own cost and forthwith substitute them with
supplies which do comply with the requirements of the contract.
Failing such removal the rejected supplies shall be returned at the
suppliers cost and risk. Should the supplier fail to provide the
substitute supplies forthwith, the purchaser may, without giving the
supplier further opportunity to substitute the rejected supplies,
purchase such supplies as may be necessary at the expense of the
supplier.
8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the
purchaser to cancel the contract on account of a breach of the
conditions thereof, or to act in terms of Clause 23 of GCC.
9. Packing 9.1 The supplier shall provide such packing of the goods as is required to
prevent their damage or deterioration during transit to their final
destination, as indicated in the contract. The packing shall be
sufficient to withstand, without limitation, rough handling during
transit and exposure to extreme temperatures, salt and precipitation
during transit, and open storage. Packing, case size and weights shall
take into consideration, where appropriate, the remoteness of the
goods’ final destination and the absence of heavy handling facilities at
all points in transit.
9.2 The packing, marking, and documentation within and outside the
packages shall comply strictly with such special requirements as shall
be expressly provided for in the contract, including additional
requirements, if any, specified in SCC, and in any subsequent
instructions ordered by the purchaser.
10. Delivery
and documents 10.1 Delivery of the goods shall be made by the supplier in accordance with
the terms specified in the contract. The details of shipping and/or other
documents to be furnished by the supplier are specified in SCC.
10.2 Documents to be submitted by the supplier are specified in SCC.
11. Insurance 11.1 The goods supplied under the contract shall be fully insured in a freely
convertible currency against loss or damage incidental to manufacture
or acquisition, transportation, storage and delivery in the manner
specified in the SCC.
12. Transportation 12.1 Should a price other than an all-inclusive delivered price be required,
this shall be specified in the SCC.
13. Incidental services
13.1 The supplier may be required to provide any or all of the following services, including additional services, if any, specified in SCC:
(a) performance or supervision of on-site assembly and/or
commissioning of the supplied goods; (b) furnishing of tools required for assembly and/or maintenance
of the supplied goods; (c) furnishing of a detailed operations and maintenance manual
for each appropriate unit of the supplied goods;
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
44
(d) performance or supervision or maintenance and/or repair of
the supplied goods, for a period of time agreed by the parties,
provided that this service shall not relieve the supplier of any
warranty obligations under this contract; and
(e) training of the purchaser’s personnel, at the supplier’s plant
and/or on-site, in assembly, start-up, operation,
maintenance, and/or repair of the supplied goods.
13.2 Prices charged by the supplier for incidental services, if not included in
the contract price for the goods, shall be agreed upon in advance by the
parties and shall not exceed the prevailing rates charged to other
parties by the supplier for similar services.
14. Spare parts 14.1 As specified in SCC, the supplier may be required to provide any or all
of the following materials, notifications, and information pertaining to
spare parts manufactured or distributed by the supplier:
(a) such spare parts as the purchaser may elect to purchase from the
supplier, provided that this election shall not relieve the supplier
of any warranty obligations under the contract; and
(b) in the event of termination of production of the spare parts:
(i) Advance notification to the purchaser of the pending
termination, in sufficient time to permit the purchaser to
procure needed requirements; and
(ii) following such termination, furnishing at no cost to the
purchaser, the blueprints, drawings, and specifications of the
spare parts, if requested.
15. Warranty 15.1 The supplier warrants that the goods supplied under the contract are
new, unused, of the most recent or current models, and that they
incorporate all recent improvements in design and materials unless
provided otherwise in the contract. The supplier further warrants that
all goods supplied under this contract shall have no defect, arising from
design, materials, or workmanship (except when the design and/or
material is required by the purchaser’s specifications) or from any act
or omission of the supplier, that may develop under normal use of the
supplied goods in the conditions prevailing in the country of final
destination.
15.2 This warranty shall remain valid for twelve (12) months after the
goods, or any portion thereof as the case may be, have been delivered
to and accepted at the final destination indicated in the contract, or for
eighteen (18) months after the date of shipment from the port or place
of loading in the source country, whichever period concludes earlier,
unless specified otherwise in SCC.
15.3 The purchaser shall promptly notify the supplier in writing of any
claims arising under this warranty.
15.4 Upon receipt of such notice, the supplier shall, within the period
specified in SCC and with all reasonable speed, repair or replace the
defective goods or parts thereof, without costs to the purchaser.
15.5 If the supplier, having been notified, fails to remedy the defect(s)
within the period specified in SCC, the purchaser may proceed to take
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
45
such remedial action as may be necessary, at the supplier’s risk and
expense and without prejudice to any other rights which the purchaser
may have against the supplier under the contract.
16. Payment 16.1 The method and conditions of payment to be made to the supplier
under this contract shall be specified in SCC.
16.2 The supplier shall furnish the purchaser with an invoice accompanied
by a copy of the delivery note and upon fulfillment of other obligations
stipulated in the contract.
16.3 Payments shall be made promptly by the purchaser, but in no case later
than thirty (30) days after submission of an invoice or claim by the
supplier.
16.4 Payment will be made in Rand unless otherwise stipulated in SCC.
17. Prices 17.1 Prices charged by the supplier for goods delivered and services
performed under the contract shall not vary from the prices quoted by
the supplier in his bid, with the exception of any price adjustments
authorized in SCC or in the purchaser’s request for bid validity
extension, as the case may be.
18. Contract amendments
18.1 No variation in or modification of the terms of the contract shall be
made except by written amendment signed by the parties concerned.
19. Assignment 19.1 The supplier shall not assign, in whole or in part, its obligations to
perform under the contract, except with the purchaser’s prior written
consent.
20. Subcontracts 20.1 The supplier shall notify the purchaser in writing of all subcontracts
awarded under this contracts if not already specified in the bid. Such
notification, in the original bid or later, shall not relieve the supplier
from any liability or obligation under the contract.
21. Delays in the
supplier’s
performance
21.1 Delivery of the goods and performance of services shall be made by
the supplier in accordance with the time schedule prescribed by the
purchaser in the contract.
21.2 If at any time during performance of the contract, the supplier or its
subcontractor(s) should encounter conditions impeding timely delivery
of the goods and performance of services, the supplier shall promptly
notify the purchaser in writing of the fact of the delay, its likely
duration and its cause(s). As soon as practicable after receipt of the
supplier’s notice, the purchaser shall evaluate the situation and may at
his discretion extend the supplier’s time for performance, with or
without the imposition of penalties, in which case the extension shall
be ratified by the parties by amendment of contract.
21.3 No provision in a contract shall be deemed to prohibit the obtaining of
supplies or services from a national department, provincial department,
or a local authority.
21.4 The right is reserved to procure outside of the contract small quantities
or to have minor essential services executed if an emergency arises, the
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
46
supplier’s point of supply is not situated at or near the place where the
supplies are required, or the supplier’s services are not readily
available.
21.5 Except as provided under GCC Clause 25, a delay by the supplier in
the performance of its delivery obligations shall render the supplier
liable to the imposition of penalties, pursuant to GCC Clause 22,
unless an extension of time is agreed upon pursuant to GCC Clause
21.2 without the application of penalties.
21.6 Upon any delay beyond the delivery period in the case of a supplies
contract, the purchaser shall, without canceling the contract, be entitled
to purchase supplies of a similar quality and up to the same quantity in
substitution of the goods not supplied in conformity with the contract
and to return any goods delivered later at the supplier’s expense and
risk, or to cancel the contract and buy such goods as may be required
to complete the contract and without prejudice to his other rights, be
entitled to claim damages from the supplier.
22. Penalties 22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of
the goods or to perform the services within the period(s) specified in
the contract, the purchaser shall, without prejudice to its other remedies
under the contract, deduct from the contract price, as a penalty, a sum
calculated on the delivered price of the delayed goods or unperformed
services using the current prime interest rate calculated for each day of
the delay until actual delivery or performance. The purchaser may also
consider termination of the contract pursuant to GCC Clause 23.
23. Termination for default
23.1 The purchaser, without prejudice to any other remedy for breach of
contract, by written notice of default sent to the supplier, may
terminate this contract in whole or in part:
(a) if the supplier fails to deliver any or all of the goods within
the period(s) specified in the contract, or within any
extension thereof granted by the purchaser pursuant to GCC
Clause 21.2; (b) if the Supplier fails to perform any other obligation(s) under
the contract; or (c) if the supplier, in the judgment of the purchaser, has
engaged in corrupt or fraudulent practices in competing for or in executing the contract.
23.2 In the event the purchaser terminates the contract in whole or in part,
the purchaser may procure, upon such terms and in such manner as it
deems appropriate, goods, works or services similar to those undelivered,
and the supplier shall be liable to the purchaser for any excess costs for
such similar goods, works or services. However, the supplier shall
continue performance of the contract to the extent not terminated.
23.3 Where the purchaser terminates the contract in whole or in part, the
purchaser may decide to impose a restriction penalty on the supplier by
prohibiting such supplier from doing business with the public sector for a
period not exceeding 10 years.
23.4 If a purchaser intends imposing a restriction on a supplier or any
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
47
person associated with the supplier, the supplier will be allowed a time
period of not more than fourteen (14) days to provide reasons why the
envisaged restriction should not be imposed. Should the supplier fail to
respond within the stipulated fourteen (14) days the purchaser may regard
the intended penalty as not objected against and may impose it on the
supplier.
23.5 Any restriction imposed on any person by the Accounting Officer /
Authority will, at the discretion of the Accounting Officer / Authority,
also be applicable to any other enterprise or any partner, manager,
director or other person who wholly or partly exercises or exercised or
may exercise control over the enterprise of the first-mentioned person,
and with which enterprise or person the first-mentioned person, is or was
in the opinion of the Accounting Officer / Authority actively associated.
23.6 If a restriction is imposed, the purchaser must, within five (5) working
days of such imposition, furnish the National Treasury, with the
following information: (i) the name and address of the supplier and / or person restricted by the
purchaser; (ii) the date of commencement of the restriction (iii) the period of restriction; and
(iv) the reasons for the restriction.
These details will be loaded in the National Treasury’s central database
of suppliers or persons prohibited from doing business with the public
sector.
23.7 If a court of law convicts a person of an offence as contemplated in
sections 12 or 13 of the Prevention and Combating of Corrupt Activities
Act, No. 12 of 2004, the court may also rule that such person’s name be
endorsed on the Register for Tender Defaulters. When a person’s name
has been endorsed on the Register, the person will be prohibited from
doing business with the public sector for a period not less than five years
and not more than 10 years. The National Treasury is empowered to
determine the period of restriction and each case will be dealt with on its
own merits. According to section 32 of the Act the Register must be
open to the public. The Register can be perused on the National Treasury
website.
24. Anti-dumping
and countervailing
duties and rights
24.1 When, after the date of bid, provisional payments are required, or anti-
dumping or countervailing duties are imposed, or the amount of a
provisional payment or anti-dumping or countervailing right is
increased in respect of any dumped or subsidized import, the State is
not liable for any amount so required or imposed, or for the amount of
any such increase. When, after the said date, such a provisional
payment is no longer required or any such anti-dumping or
countervailing right is abolished, or where the amount of such
provisional payment or any such right is reduced, any such favourable
difference shall on demand be paid forthwith by the contractor to the
State or the State may deduct such amounts from moneys (if any)
which may otherwise be due to the contractor in regard to supplies or
services which he delivered or rendered, or is to deliver or render in
terms of the contract or any other contract or any other amount which
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
48
may be due to him
25. Force Majeure
25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the
supplier shall not be liable for forfeiture of its performance security,
damages, or termination for default if and to the extent that his delay in
performance or other failure to perform his obligations under the
contract is the result of an event of force majeure.
25.2 If a force majeure situation arises, the supplier shall promptly notify
the purchaser in writing of such condition and the cause thereof.
Unless otherwise directed by the purchaser in writing, the supplier
shall continue to perform its obligations under the contract as far as is
reasonably practical, and shall seek all reasonable alternative means for
performance not prevented by the force majeure event.
26. Termination
for insolvency 26.1 The purchaser may at any time terminate the contract by giving written
notice to the supplier if the supplier becomes bankrupt or otherwise
insolvent. In this event, termination will be without compensation to
the supplier, provided that such termination will not prejudice or affect
any right of action or remedy which has accrued or will accrue
thereafter to the purchaser.
27. Settlement of
Disputes
28. Limitation of
liability
27.1 If any dispute or difference of any kind whatsoever arises between the
purchaser and the supplier in connection with or arising out of the
contract, the parties shall make every effort to resolve amicably such
dispute or difference by mutual consultation.
27.2 If, after thirty (30) days, the parties have failed to resolve their dispute
or difference by such mutual consultation, then either the purchaser or
the supplier may give notice to the other party of his intention to
commence with mediation. No mediation in respect of this matter may
be commenced unless such notice is given to the other party.
27.3 Should it not be possible to settle a dispute by means of mediation, it
may be settled in a South African court of law.
27.4 Mediation proceedings shall be conducted in accordance with the rules
of procedure specified in the SCC.
27.5 Notwithstanding any reference to mediation and/or court proceedings
herein,
(a) the parties shall continue to perform their respective obligations
under the contract unless they otherwise agree; and
(b) the purchaser shall pay the supplier any monies due the supplier.
28.1 Except in cases of criminal negligence or willful misconduct, and in
the case of infringement pursuant to Clause 6; (a) the supplier shall not be liable to the purchaser, whether in
contract, tort, or otherwise, for any indirect or consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay penalties and/or damages to the purchaser; and
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014
49
32.2 A local supplier shall be entirely responsible for all taxes, duties,
license fees, etc., incurred until delivery of the contracted goods to
the purchaser.
32.3
No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the award of a bid the Department must be in possession of a tax clearance certificate, submitted by the bidder. This certificate must be an original issued by the South African Revenue Services.
33.
Industrial
National
33.1
The NIP Programme administered by the Department of Trade and
Industry shall be applicable to all contracts that are subject to the Participatio n (NIP) NIP obligation.
29. Governing
language
(b) the aggregate liability of the supplier to the purchaser, whether
under the contract, in tort or otherwise, shall not exceed the total
contract price, provided that this limitation shall not apply to the
cost of repairing or replacing defective equipment.
29.1 The contract shall be written in English. All correspondence and other
documents pertaining to the contract that is exchanged by the parties
shall also be written in English.
30. Applicable
law 30.1 The contract shall be interpreted in accordance with South African
laws, unless otherwise specified in SCC.
31. Notices 31.1 Every written acceptance of a bid shall be posted to the supplier
concerned by registered or certified mail and any other notice to him
shall be posted by ordinary mail to the address furnished in his bid or
to the address notified later by him in writing and such posting shall be
deemed to be proper service of such notice
31.2 The time mentioned in the contract documents for performing any act
after such aforesaid notice has been given, shall be reckoned from the
date of posting of such notice.
32. Taxes and
duties 32.1 A foreign supplier shall be entirely responsible for all taxes, stamp
duties, license fees, and other such levies imposed outside the
purchaser’s country.
Programme
34 Prohibition of Restrictive practices
34.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. 89 of
1998, as amended, an agreement between, or concerted practice by,
firms, or a decision by an association of firms, is prohibited if it is
between parties in a horizontal relationship and if a bidder (s) is / are
or a contractor(s) was / were involved in collusive bidding (or bid
rigging).
34.2 If a bidder(s) or contractor(s), based on reasonable grounds or
evidence obtained by the purchaser, has / have engaged in the
restrictive practice referred to above, the purchaser may refer the
matter to the Competition Commission for investigation and possible
imposition of administrative penalties as contemplated in the
Competition Act No. 89 of 1998.
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference AUGUST 2014
50
34.3 If a bidder(s) or contractor(s), has / have been found guilty by the
Competition Commission of the restrictive practice referred to above,
the purchaser may, in addition and without prejudice to any other remedy
provided for, invalidate the bid(s) for such item(s) offered, and / or
terminate the contract in whole or part, and / or restrict the bidder(s) or
contractor(s) from conducting business with the public sector for a period
not exceeding ten (10) years and / or claim damages from the bidder(s) or
contractor(s) concerned.
Js General Conditions of Contract (revised July 2010)
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference AUGUST 2014
51
12 ANNEXURE B – Bid Response Document – Technical Proposal
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference AUGUST 2014
52
13 ANNEXURE C – Bid Response Document – Price Proposal
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference AUGUST 2014
53
14 ANNEXURE D – ERP Software and Implementation Services – Specifications.xlsx
Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference AUGUST 2014
54
15 ANNEXURE E – ERP Software and Implementation Services– Price Schedule.xlsx