ROOTED IN AFRICA. INSPIRED BY THE WORLD.
HOW TO DO BUSINESS WITH SAA
SAA GROUP PROCUREMENT SUPPLIER INFORMATION 2016/17 [Excluding Mango]
PREAMBLE
WELCOME ON BOARD ROOTED IN AFRICA, INSPIRED BY THE WORLD
South African Airways (SAA) is a multi-award winning airline based in Johannesburg, South Africa.
SAA was founded on 1 February 1934. Over the past 82 years, we worked hard as an airline to overcome historical challenges and move with the times.
Today, we are a proud member of the Star Alliance group; the largest Alliance in world.
THE NATION’S PRIDE
South Africa’s national airline and the official airline of Bafana-Bafana, South Africa’s national soccer team. We provide our customers with great choices of travel In the domestic market and regional space.
The airline pride is that it is South Africa’s most on-time* airline.
SAA have recently been voted ‘Best Business Class product in Africa’ in the regional Category for the fifth time.
REACHING OUT
South African Airways flies to 27 carefully selected destination in Africa …including Abidjan, Accra, Blantyre, Dakar, Dar es Salaam, Douala, Harare, Kinshasa, Lagos, Libreville, Lilongwe, Livingstone, Luanda, Lusaka, Maputo, Mauritius, Nairobi, Ndola, Pointe Noire, Victoria Falls, Windhoek and our newly opened route Abuja.
We also offer daily flights from Johannesburg to following international destinations: London (Heathrow), Frankfurt, Munich, Perth, Hong Kong, New York, Washington and Sao Paulo.
SAA operates almost 600 flights per week between Johannesburg and Cape Town, Durban, East London and Port Elizabeth. We also code-share flights with Mango airlines between Lanseria, Cape Town and Durban.
SAA Technical (SAAT) is a subsidiary of SAA. The sole provider of aircraft maintenance to SAA, and supplies line maintenance to over 25 other domestic, regional and international airlines. Major maintenance is supplied to four other ongoing customers.
The other subsidiary is AirChefs, the catering arm of SAA, it provides catering services to SAA and a number of airlines. Contents
1. INTRODUCTION
2. SAA PROCUREMENT TRANSFORMATION MISSION
3. SMME DATABASE REGISTRATION
4. PROCUREMENT PROCEDURES: RFQ & RFP PROCESS
5. ENTERPRISE AND SUPPLIER DEVELOPMENT SUPPORT
6. SAA CORPORATE PROCURED COMMODITIES
7. SAAT PROCURED COMMODITIES
8. AIRCHEFS PROCURED COMMODITIES
9. CONTACT DETAILS
ANNEXURE A
- SAA CORPORATE PROCUREMENT PLAN 2016/17
- SAAT CORPORATE PROCUREMENT PLAN 2016/17
- AIRCHEFS PROCUREMENT PLAN 2016/17
1. INTRODUCTION
In support of South Africa’s National Developmental Goals, South African Airways (SAA) has been encouraging Small Medium Micro Enterprises (SMMEs) that are 51% and above Black Owned, Black Women Owned, Disabled Owned, Military Veterans Owned and Youth Owned businesses to do business with SAA.
• Last year SAA hosted a series of Supplier Engagement Summits around the country’s major towns/ cities with the objective to promote South African government developmental goals of creating an enabling environment for previously marginalised groups. This year SAA shall continue engaging SMMEs to do business with SAA through various platforms.
• The key purpose of this document is to give an overview of SAA’s procurement process, share some of the products procuring, even though we are finalising the Enterprise & Supplier Development Programme the document will also highlight common mistakes done by bidders and share the SAA annual procurement plan for 2016/17 financial year.
2. SAA PROCUREMENT TRANSFORMATION MISSION
To lead and accelerate transformation in the South African aviation industry and focus on the inclusive opportunities for black owned, women owned, disabled owned, Military Veterans owned and youth owned businesses;
Development and implementation of a sustainable, environmentally friendly procurement. 3. SMME DATABASE REGISTRATION
Compliant Small Medium Micro Enterprises (SMMEs) that are interested in doing business with SAA can register their businesses on the SAA SMME (EMEs & QSEs) database. o EME = Exempt Micro Enterprise is a business whose annual turnover is < R10m, i.t.o the new B-BBEE Codes of Good Practice. o QSE = Qualified Small Enterprise is a business whose annual turnover is >R10m The SMME database registration forms can be downloaded from the SAA website http://www.flysaa.com/za/en/footerlinks/aboutUs/saa-tenders.html (on the tender section). SAA promotes doing business with SMMEs by utilising the SMME database for operational purchasing (RFQ’s). SMMEs should also register on the National Treasury Central Supplier Database (CSD). To access the CSD website for self-registration click on the link: www.csd.gov.za and complete the online registration process. There after registering, kindly please submit the CSD Registration Summary Report to SAA by email to the following addresses: [email protected] and /[email protected] 4. PROCUREMENT PROCEDURES: RFQ & RFP PROCESS SAA operates a centralised procurement function for both Operational and strategic procurements on the following basis: • Any procurement of goods and services to the value of R500k (All Taxes inclusive) is to follow a three quote Request For Quote (RFQ) system; • Any procurement of goods and services to the value exceeding R500k (All Taxes inclusive) follows the open tender process, confinement or sole source approach, depending on the nature of the request. • For RFQs enquiries email [email protected] 4.3 Most common mistakes by potential suppliers / bidders • Do not address the functional scoring items in the proposal – prospective suppliers should be able to score themselves in the outline of their submission and determine their own scoring • Documentation requested as proof - not always provided with proposal such as certificates, proof of experience, CV’s etc. • Provide outdated or no Tax and B-BBEE certificates. No business can be conducted without having a valid Tax clearance certificate. No scoring for an outdated B-BBEE or if the B-BBEE certificate is not provided. • Bidders do not adhere to the closing date and time, specifically the closing time. Proposals will not be accepted or evaluated after the closing time. • When stating that all prices submitted must be firm, and further stated that “Firm” prices are deemed to be fixed prices, which are only subject to the following statutory changes, namely VAT, and validity of RFQ to be 60 days or RFP/RFB to be valid for 120 days, suppliers do request price escalations soon after an award, which will not be acceptable. Make sure of your pricing structures prior to bidding. 5. ENTERPRISE AND SUPPLIER DEVELOPMENT (“ESD”) SUPPORT • Enterprise and Supplier Development (“ESD”) means monetary and non-monetary contributions carried out to beneficiaries, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries. • Exempted Micro-Enterprises or Qualifying Small Enterprises which are 51% Black Owned or 30% Black Women Owned, Disabled Owned, Military Veteran Owned are priority to the transformation of the SAA procurement. • SAA and DTI have signed a memorandum of understanding on the development of key products the airline is procuring by enrolling the qualifying awarded suppliers and projects on the Black Industrialists Programme to support industry transformation and local production. Ideally Enterprise and Supplier Development (ESD) budget is the 3% Nett Profit after Tax (NPAT) of the company. Although SAA has not recorded NPAT, ESD remains a priority as explained hereunder: SAA utilises its supplier database as one of the vehicles to achieve the development objectives. SAA provides engagement sessions and exposure to SMMEs through hosting Supplier Summits, at this sessions commodity managers engage with prospective suppliers on procurement process, common mistakes by SMMEs when tendering and showcase some of the products they procure to keep the airline operational. SAA provides training/ workshops to suppliers on tender- procurement process and tips on how to submit acceptable tender documents. Where feasible and viable, SAA is setting out to unbundle its big contracts to allow and increase participation of SMMEs, encouraging its Large Enterprise and Qualifying Small Enterprises (QSEs) to subcontract with SMMEs. The key element of supporting SMMEs is that the airline pays small business suppliers within fifteen days of receiving required mandatory documentation. SAA provides rent free space for SMMEs that secured a tenders with SAA and whose services are required onsite (for example, office space and storage facilities) SAA is currently finalising the development of its ESD programme. This proposed programme has been developed taking into cognisance SAA’s loss making situation. - The collaborative initiative will include but not limited to development finance institutions and business development agencies. The latter would conduct business diagnosis and render business support services, in certain instances. - It is envisaged that this network of partners would be carefully grown over time to address the evolving execution requirements of SAA’s SD programme and in line with the airline’s implementation capabilities. - The programme will be advertised on the SAA website. 6. SAA CORPORATE PROCURED COMMODITIES - CORPORATE & PROFESSIONAL SERVICES - IN-FLIGHT SERVICES - ENERGY& FLEET - HOSPITALITY AND MEDIA - GROUND HANDLING SERVICES - SECURITY - FACILITIES - IT SERVICES - FLEET & AIRCRAFT ACQUISITION NAME OF COMMODITY: CORPORATE & PROFESSIONAL SERVICES Commodity Manager: Silas Matsaudza Brief List of goods and services The commodity group is • Legal services responsible for the sourcing of • Training services suppliers/service providers to • Banking services satisfy SAA’s professional and • Recruitment & executive search corporate requirements, such as • Crime line-Anonymous calls training services, legal services, • Archiving services consulting services, external • Courier services audit, and recruitment related • Consulting services services, routine and ad hoc • Employment wellbeing corporate requirements such as • Printing solutions office and pre-printed stationary, • Office stationary uniforms, archiving and courier • Pre-printed stationary services. Listed below are some • FDC, Cabin and ground staff uniform of the requirements that falls • Printing paper under Corporate & Professional Services Commodity Group. COMMODITY NAME: IN-FLIGHT SERVICES Commodity Manager: Bozena Kowalski Brief List of goods The commodity group is Comfort items (eg. Linen, Amenity Kits, responsible for the Headsets, etc.) sourcing of Tray set-up items (eg. Crockery, Glassware, suppliers/service Cutlery, etc.) providers to satisfy SAA’s Beverages passenger - a.(Non-alcoholic i.e. juices, soft drinks, coffee, needs/experience on- tea, etc.) board the aircraft. - b. (Alcoholic i.e. Beer, Wines, etc.) Consumables (Sugar, Salt & Pepper, nuts, etc). Disposable Paper Products. Disposable Plastic Products. Plastic rotable products. Galley Equipment & Maintenance. Magazines and newspapers. Stainless Steel Products. In-flight Entertainment (On-board videos) COMMODITY NAME: FLEET & AIRCRAFT ACQUISITION Commodity Manager: Bertus Steyn Brief List of goods or services: Aircraft Leasing (Cargo and Aircraft- Wet leases, Dry lease, Charter passenger) Services, Aircraft Inspection Services at Factories, e.t.c Fleet Services • Fuel ( Diesel, Petrol and Polyfuel) • Cargo Trucking (i.e. Sprinter and National) • Vehicle purchases • Vehicle Maintenance • Vehicle Hire / Lease • Freight Services • Forklifts • Chauffeur services • Cargo consumables including nets, pallets and ULD’s Flight Operations Services Flight Navigation Systems (i.e. charts, software etc) Simulator (Lease and service) Baggage Handling Services Baggage Repairs Services COMMODITY NAME: HOSPITALITY AND MEDIA Commodity Manager: Bozena Kowalski Brief List of goods and services The Hospitality and Media Commodity Social Media Agency Group is responsible for the following (international location) services: Digital Marketing Agency (international location) Hospitality: responsible for sourcing of SAA Advertising Agency (international Cabin and Flight Deck Crew hotel location) accommodation and Crew transport at all Media Planning and Buying applicable to SAA destinations: i.e. Corporate Clothing and International, Regional and Domestic Promotional Items locations. Transport provision for delayed Whereas the Media part of the above flights mentioned portfolio entails the following: Crew and Staff transport at JNB, sourcing of the following Durban and CPT services/products, to satisfy SAA’s Production and Publishing of the Marketing and Group Corporate Affairs Inflight Magazine - ‘Sawubona’ Departments needs/requirements: e.g. Corporate Exhibitions Corporate Clothing and Branded Sourcing of Hotel Accommodation, Promotional Items, Brand Design, Media for SAA Crew for Domestic Planning and Buying, Advertising, Market: Johannesburg, Port Production and Publishing of Inflight Elizabeth, Cape Town, and Magazine, Global advertising and Media Durban. Monitoring, etc. COMMODITY NAME: ENERGY Commodity Manager: Thami Sogwazile Brief List of services Energy - To ensure the security of supply Jet Fuel and delivery of Jet Fuel at all SAA and SAA affiliate locations. COMMODITY NAME: GROUND HANDLING SERVICES Commodity Manager: Thami Sogwazile Brief List of services The commodity group is responsible for the Management Functions sourcing of suppliers/service providers to Passenger services render Ground Handling requirements to Ramp services SAA Aircraft’s at each destination served by Load Control and Flight the Airline, like Johannesburg, Cape Town, Operations Durban, Port Elizabeth and East London. Cargo and Mail Warehouse Ground Handling is a regulated service and Services the Handler should be an Support Services accredited/licensed service provider as Security appointed by the Airports Authority. Ground Handling services are prescribed by IATA – and covered under the IATA Airports Handling Manual (AHM) 810 of January 2013 - Listed below are some of the requirements that falls under Ground Handling Services Commodity Group. COMMODITY NAME: SECURITY SERVICES Commodity Manager: Thami Sogwazile Brief List of services The Security part of the aforesaid CCTV Commodity portfolio is responsible for the Aviation Security sourcing of suppliers/service providers to Physical Security satisfy SAA’s Aviation and General security X-Ray machines services, including any other security related Boom Gates services which arise aim to enhance security TPU (Tactical Patrol Unit) services for SAA’s operations. Aviation and General security tenders are confined to ACSA accredited companies. The remainder of the tenders in this Commodity are open to the general public. COMMODITY NAME: FACILITIES Commodity Manager: Thami Sogwazile Brief List of services South African Airways Facilities Project Management Management mission is to design, develop, o Internal renovations and implement, extend the life expectancy of furniture Facilities & Assets and improve the delivery o Design and drawing of Facility Services for SAA within agreed management time, cost, business and quality Engineering and Maintenance requirements. o Engineering projects o Electrical and Mechanical maintenance o HVAC maintenance o Civil and General building maintenance o Energy management Soft and work place services o Cleaning o Landscaping and gardening o Catering o Boardroom management o Parking o Office moves Compliance and Call Centre COMMODITY NAME: IT SERVICES Commodity Manager: Mzolisi Rungqu Brief List of services IT Commodity entails sourcing of IT SAP Projects solutions and services. Some of the o SAP Procure to Pay optimisation solutions are used for operations o SAP Business Warehousing re- which are common to many corporate implementation environments and some are aviation o SAP Performance Management implementation specific. o SAP Mobility IT Hardware o SAN Storage o Servers o Desktops o Laptops o Mobile Devices (Tablets, Smart Phones) o Switches o Routers IT Software o Aviation specific software o Software vendors IT Servers o Software developers o Network specialist o Desktop services o Telephony specialist o Servers specialist 7. SAAT PROCURED COMMODITIES Aircraft Exteriors Aircraft Interiors COMMODITY NAME: Aircraft : Exteriors Commodity Manager: Belinda Rothquel Brief List of Services and Goods: The aircraft exterior commodity group is Engine Repairs and Overhaul responsible for sourcing of suppliers/service services providers to satisfy the technical operational Engine Leases requirements of SAAT related to the exterior APU Leases of the aircraft, which include requirements as Power Plant procurement regulated by the Federal Aviation support services Administration (FAA), European Aviation Wheel and Brakes service Safety Agency (EASA) and South African Civil providers Aviation Authority (SACAA). Some of the Aircraft Tyres goods and services sourced are Aviation Aircraft Paint specific, while some are common to Aircraft cockpit windows corporate environments. Tooling, Equipment and Training General: Biological monitoring services Customs tariff audit OEM licences Disposal of Redundant Assets Disposal of surplus material Facility upgrades COMMODITY NAME: Aircraft : Interiors Commodity Manager: Mmapitso Khoetha Brief List of Services and Goods: The aircraft interior commodity Landing Gear Repair and Overhaul group is responsible for sourcing of services suppliers/service providers to Avionics satisfy the technical operational Standard Hardware requirements of SAAT related to the Sealants interior of the aircraft, which include Igniters requirements as regulated by the Aircraft Lubricants and Greases Federal Aviation Administration Aircraft metals (FAA), European Aviation Safety Tooling and Equipment Agency (EASA) and South African Inflight Entertainment Civil Aviation Authority (SACAA). Some of the goods and services General: sourced are Aviation specific, while Liquid waste absorbent some are common to corporate Rags environments. Tooling Natural Gas NDT Services COMMODITY NAME: Aircraft : Interiors Commodity Manager: Ouma Bingwa Brief List of Services and Goods: The aircraft interior commodity group is Component Repair and Overhaul responsible for sourcing of services suppliers/service providers to satisfy APU Repair and Overhaul services the technical operational requirements BFE (Buyer Furnish Equipment) for of SAAT related to the interior of the new Aircraft aircraft, which include requirements as Aircraft Tapes regulated by the Federal Aviation Aircraft Batteries Administration (FAA), European Aviation Tooling and Equipment Safety Agency (EASA) and South African Civil Aviation Authority (SACAA). Some General: of the goods and services sourced are Gas cylinders and Bulk gas Aviation specific, while some are Waste disposal common to corporate environments. Logistics support Safety shoes Plastics Atec support 8.AIRCHEFS PROCURED COMMODITIES Food and Non food COMMODITY NAME: Catering Commodity Manager: Zainab Sadulla Brief List of services At Air Chefs, we are fanatical about food. Refrigeration maintenance, We have been in the food industry since services and repairs 1986 and have firmly established Building maintenance ourselves as a market leader in the Fleet maintenance & Fleet hiring Southern Africa airline catering industry. Cleaning services Working from our Central Production Electrical maintenance services Units in Johannesburg, Cape Town and Kitchen equipment maintenance Durban, our enthusiastic and meticulous and repairs team is capable of producing over 30 000 Gardening services mouthwatering meals every day. We offer Freight forwarding services a versatile catering service, from Supply of packaging equipment providing in-flight meals to our airline Supply of office stationery clients, to supplying staff restaurant Supply of staff clinic services meals to our corporate clients, ready- Supply of car tracking services made meals for contract caterers and a Provision of security services multitude of other food Container hiring Provision of waste removal service offerings. services Provision of microbiological services COMMODITY NAME: Catering Commodity Manager: Zainab Sadulla List of services Supply of pre-printed cards, labels & stickers Red meat products & Poultry products Seafood products Frozen vegetables Frozen fruits & Dairy products Bakery products & Desserts products Cold beverages & Hot beverages Assorted dry goods / groceries & ssorted dry snacks Savoury dry biscuits Prepared meals Whole fruits & vegetables Cut fruits & vegetables Freshly squeezed juices Fresh eggs & Liquid eggs Wet ice & Dry ice Gas Sauces & Spices Pasta Olives and olive oil 9. SAA GROUP CONTACTS South African Nico Mookeletsi 011 978 6530 Airways (SAA) Supplier Development [email protected] Corporate Reinette Slabbert 011 978 3753 Vendor Master [email protected] Silas Matsaudza 011 978 1629 Corporate & Professional Services [email protected] Bozena Kowalski 011 978 3995 Inflight Services [email protected] Thami Sogwazile 011 978 6831 Energy & Ground Handling Services, [email protected] Security Services, Facilities Bertus Steyn 011 978 3525 Fleet & Aircraft Acquisition [email protected] Mzolisi Rungqu 011 978 3264 IT Services [email protected] South African Princess Tshabalala 011 978 6354 Airways Supplier Development [email protected] Technical Belinda Rothquel 011 978 6354 (SAAT) Aircraft Exteriors [email protected] Mmapitso Khoetha 011 978 9262 Aircraft Interior [email protected] Ouma Viwe Bingwa 011 978 5774 Aircraft Interior [email protected] Air Chefs Portia Ngema 011 978 1754 Vendor Master [email protected] Zainab Sadulla 011 978 3336 Food & Non Food [email protected] ANNEXURE A - SAA CORPORATE PROCUREMENT PLAN 2016/17 - SAAT CORPORATE PROCUREMENT PLAN 2016/17 - AIRCHEFS PROCUREMENT PLAN 2016/17 THANK YOU FOR MORE INFORMATION ON SAA PLEASE CALL US OR VISIT OUR WEBSITE, WWW.FLYSAA.COM SOUTH AFRICAN AIRWAYS Airways Park, Jones Road O.R. Tambo International Airport 1627, South Africa Phone: +27 11 978 1111/5873 [email protected]