Strategic Procurement

STRATEGIC PROCUREMENT REQUEST FOR TENDER

TENDER PARTICULARS:

SUBJECT REQUEST FOR THE TENDER FOR THE PURCHASE OF THE PHASED ARRAY ULTRASONIC EQUIPMENT (hereinafter referred to as GOODS) REQUEST NO SAAT 001/13 DATE ISSUED 19/03/2013 CLOSING DATE 30/04/2013 CLOSING TIME 11H00 RFP QUERIES The Project Manager Name: Gcobisa Gosa Fax: +27 11 978 2638 E-mail [email protected]

SUBMISSION PARTICULARS COMPANY NAME REGISTRATION # CONTRACT PERSON TELEPHONE # FACSIMILE # E-MAIL ADDRESS

------To be completed by SAA Technical ------For Official use only SUBMISSION ADMINISTRATION TCB LIAISON PROCUREMENT LIAISON

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Table of Contents

1. Overview 1.1 Introduction 1.2 Procurement Philosophy 1.3 SAA Black Economic Empowerment (BEE) Programme Statement of Policy 2. Criteria 2.1 Elimination /Critical Criteria 2.2 Evaluation Criteria

3. Conditions 3.1 Conditions of Quotation 3.2 Tenderer’s May Form a Consortium or a Joint Venture 3.3 Submission of Tenders 3.4 Period of Acceptance 3.5 Deviations from RFT

4 Cover Letter Supplier’s details Appendix 1 Scope of Services Appendix 2 Pricing Appendix 3 Confirmation of Intention to quote & confidentiality Appendix 4 Company Documentation Appendix 5 Board Resolution / Delegation of Powers Appendix 6 References Appendix 7 Checklist

1. OVERVIEW

1.1 INTRODUCTION

South African Airways (“SAA”) is committed to be the carrier of choice in the markets it serves. SAA Technical (“SAAT”) as the contracted maintenance provider to SAA is committed to assist SAA to be the carrier of choice in the markets it serves. Reference in this document to SAA shall include reference to SAAT unless specifically stated otherwise.

This is inspired by our belief in service excellence, integrity, accountability, quality, safety, people development and value to our shareholders.

SAA’s new values and business practices guide all our business relations. Our business partners and suppliers are encouraged to uphold, promote and share the same values and vision.

The quality, price and service that we provide our customers can only be as good as what we receive from our suppliers.

We strive for continuous improvement in our critical business areas and seek to establish relationships with suppliers that are equally passionate in their quest for better quality, price and service. By exceeding our requirements and expectations, you will not only ensure that you maintain the current level of business; you will position yourself for more in the future.

1.2 PROCUREMENT PHILOSOPHY

It is the policy of SAA, when purchasing GOODS, to follow a course of optimum value and efficiency by adopting best purchasing practices in supply chain management, ensuring where possible that open and fair

1/9/2018 Page 3 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER competition has prevailed, with due regard being paid to the importance of:

1.2.1 The promotion of the Interdivisional Support Policy; 1.2.2 The promotion, development and support of businesses from communities (small, medium, micro enterprises, as well as established businesses within those communities) in terms of its BEE Policy; 1.2.3 The promotion of national and regional local suppliers and agents before considering overseas suppliers; and 1.2.4 The development, promotion and support for the moral values that underpin the above, in terms of SAA’s Business Ethics and Guidelines which requires that all commercial conduct be based on ethical and moral values and sound business practice. This value system governs all commercial behaviour within SAA.

1.3 SAA BLACK ECONOMIC EMPOWERMENT (BEE) PROGRAMME STATEMENT OF POLICY

It is the policy of SAA to promote Black Economic Empowerment by enabling qualifying Black Suppliers and SMME Suppliers, to meaningfully participate in the mainstream of the SAA procurement endeavours. In order to promote the effective and efficient development and support of suppliers and contractors from the historically disadvantaged communities, SAA decided to target that 50% of the discretionary total procurement expenditure be sourced in such a manner that it advances Black Economic Empowerment.

2. CRITERIA In order to facilitate fair comparison between the tenders or quotations all tenders shall be converted to a common basis on the comparative list taking the following into account:

2.1 Elimination/Critical Criteria 2.1.1 Compliance to technical specification This tender is subject to compliance with the technical specification noted in Appendix 1. A tender shall not be recommended for acceptance if the tenderer is unable to comply with these needs. 1/9/2018 Page 4 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER

2.2 Evaluation Criteria 2.2.1 Price In view of the fact that SAA and SAAT are operating in a competitive transport market, price is a very important factor as it ensures optimum value for money and reflects directly onto SAA’s and SAAT’s bottom line.

2.2.2 Capacity to Deliver (Experience, equipment, financial standing and previous performance of the tenderer) A tender shall not be recommended for consideration if the employee required to make the recommendation has any doubt, based on the reasonable grounds as to whether the tenderer is: - Sufficiently experienced - Equipped and is sufficient sound financial standing to carry out any contract that may be awarded pursuant to the tender

Capacity to Deliver - In terms of: Lead time Free service offered during the guaranteed period and the readily availability of expert advice Further to the above, this category will be subjected to the following scrutiny: - Price fixation/validity period against the Rate of Exchange - Service supply ability - Statutory compliance - Quality and SAA specification conformance - Warranties/Guarantees - Track record within the industry incorporating Company Risk Analysis 2.2.3 BEE 1/9/2018 Page 5 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER

Black Economic Empowerment shall mean a deliberate proactive and ongoing programmes to ensure constructive participation by South African Blacks in the mainstream of the South African economy as stakeholders, i.e., as entrepreneurs, owners and managers who can beneficially utilize assets to create wealth.

3. CONDITIONS

Provided that you are prepared to comply with the conditions herein you are invited to submit a TENDER/Proposal for the Scope of Work as contained in Annexure 1:

3.1 Conditions of Quotation

3.1.1 The final terms and conditions are subject to negotiations and a conclusion of an agreement between the parties. 3.1.2 Final payment terms will be negotiated with the successful tenderer before awarding the tender. 3.1.3 The tenderer shall provide its best and final price in the tender. This price will be considered together with all other relevant criteria in the tender. The validity period of quoted prices should be clearly stated in the tender. The final prices will be negotiated with the successful tenderer before awarding the tender. 3.1.4 The tender shall be awarded at the sole and absolute discretion of SAAT. SAAT hereby represents that it is not obliged to award this tender to any tenderer. SAAT is entitled to retract this tender at any time as from the date of issue. SAAT is not obliged to award this tender to the tenderer that quotes the lowest tender.

1/9/2018 Page 6 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER 3.1.5 The tenderer shall be disqualified from tendering if any attempt is made either directly to solicit and/or canvass any information from any employee or agent of SAAT regarding this tender from the date the tender is submitted until the date of award of the tender. 3.1.6 SAAT will adjust any arithmetical errors found in the Quotation and shall advise the tenderer accordingly. 3.1.7 Quotations and any information contained within will be treated as confidential and will not be disclosed to any third party – including other tenderers. 3.1.8 Tenderers shall prepare and submit Quotations at their own expense.

3.1.9 The successful Tenderer shall: 3.1.9.1 Offer to supply and deliver GOODS in accordance with the specifications, at the prices quoted and in accordance with the delivery conditions; 3.1.9.2 Agree that the scope of Purchase document constitutes a general list and indication of GOODS required at various stations, however the specific requirement of GOODS required may vary from station to station; 3.1.9.3 Enter into a contract when requested to do so by SAAT within the stipulated period; 3.1.9.4 Be liable for all additional expenses incurred by SAAT in having to call for tenders afresh and/or accepting any less favorable tender in the event that the tenderer fails to enter into a contract with SAAT timeously. 3.2 Tenderers may form a Consortium or a Joint Venture.

3.2.1 Tenderers must guarantee the obligations of the Consortium or Joint Venture. 3.2.2 Tenderer(s) must supply the following:  A binding agreement between all parties of the Consortium or Joint Venture  Name of the Consortium Joint Venture trading as  Contact person twenty four (24) hours availability  List of shareholders and percentage shareholding  Date of Consortium or Joint Venture registration  Consortium or Joint Venture registration number  Consortium or Joint Venture registration

1/9/2018 Page 7 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER  Organizational structure of Consortium or Joint Venture  Basic functional structure, i.e. the administrative section of your Consortium or Joint Venture with which SAAT will be dealing with on a day to day basis.

3.2.3 The agreement and submission should clearly show who the leading Consortium/Joint Venture member is. The leading member shall be responsible for the execution of this tender.

3.3 Submission of Tenders.

3.3.1 Tenderers must deposit R1,000.00 (One thousand Rands only) into the following SAA bank account prior to the submission of the completed Tender document:

Banking Institute Name: Standard Bank

Branch: Isando

Account Number: 0022771263

Branch Code: 012542

Tender, together with an original of the bank deposit slip for R1,000.00 (One thousand Rands), including all documents and information pertaining thereto, shall be submitted in a sealed parcel/envelope. The envelope must be clearly marked with:-

The RFT No: SAAT 01/13 Closing Date: 30 April 2013 Tender/Confidential/Do not open Tenderer’s Name and Address on the back of the envelope and Be addressed as follows:-

FOR ATTENTION: Chairperson: SAA Tender Board South African Airways (PTY) LTD Private Bag x13 Johannesburg International Airport 1627 Republic of South Africa

1/9/2018 Page 8 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER 3.3.2 Hand delivered tenders must be sealed in a parcel or envelope marked “Tender/Confidential/Do not open” and placed in the Tender Box situated at:

South African Airways (Pty) Ltd Main Reception Gate Airways Park, Jones Road OR Tambo International Airport

3.3.3 All tenders should reach SAA by no later than 11h00 on the closing date

3.3.4 No facsimile or e-mail submissions will be considered.

3.3.5 Tenders submitted shall consist of all listed documents in Appendix 7- the checklist, which forms the minimum acceptable requirement. 3.3.6 Late tenders will not be considered and tenders delivered to any address or deposited in any box other than that stipulated herein will be regarded as late tenders and may consequently be returned to tenderers. 3.4 Period of Acceptance 3.4.1 Quotations shall be open for acceptance for a period of at least 120 calendar days after the closing date. It should be noted that tenderers may offer a shorter validity period, but that they may, in that event, be disregarded for this reason. 3.4.2 Should tenderers be unable to comply with this validity period, an alternative validity period may be offered hereunder. The tender holds good until ______(state alternative period) Date: ______Signature of Tenderer(s): ______Print Name: ______Contact Numbers: ______

1/9/2018 Page 9 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER 3.5 Deviations from RFT 3.5.1 Unless otherwise specified and stipulated in writing, any terms and conditions forming part of the tenderer’s proposal which deviates from the RFT shall be of no force or effect.

SUPPLIER DETAILS:

Supplier Physical Address:

Supplier Postal Address:

Telephone No: Fax No: Contact Person: E-mail: Company Registration No: Banking Details: Bank Name: Account No: Branch Code: If the items being offered on this Tender originate from a country, other than RSA, please supply the following details: Country of Origin:

1/9/2018 Page 10 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER Country of Manufacture: Country of Export: Manufacturer Name: Manufacturer Address in full:

The Tenderer must state hereunder the annual holiday closedown period and also if this period has been included in the delivery period offered:

SIGNATURE OF TENDERER

SCOPE OF WORK Appendix 1

Phased Array Ultrasonic Equipment

Part Number: ULTRASONIC EQUIPMENT OMNISCAN MX PAUT 16-128 (U8100029) with software version MXU 2.0 R7 or higher

Flaw Detector, Automated OmniScan MX PA Module conforming to the following; - A,B,S & C Scan Display - Advanced real-time data processing - Configurable in (16:16; 16:128) elements 1ea Incl. - x1 Omniscan - x2 BNC Connectors (1 Pulse/Receiver 1 Receiver for conventional UT) - Software Version MXU-2.0R7 or higher - Battery, Carry Case with handle & strap, AC Adapter 10l16 Probe 1 ea

1/9/2018 Page 11 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER 10l16E5-5 Probe 1 ea AWP05-64-08-050 Probe 1 ea SA1-N60S5X5 Wedge 1 ea SA00-N60S Wedge 1 ea Reference Standard NDT 1094-040 1 ea Reference Standard NDT 1094-050 1 ea Reference Standard NDT 1094-050 1 ea Reference Block 99D57204164000 1 ea

Kindly advise the following: 1. Guarantees / Warranties 2. After sales service (In terms of Training and availability of expert advice. And, also, indicate whether the cost of Training is included in the price or show it separately) 3. Operating Manuals to be supplied 4. Estimated period of delivery 5. Payment Terms – To be negotiated with SAAT 6. The detailed drawings on the layout of the proposed system NOTE: SUPPLIER MUST ALSO SUBMIT EQUIPMENT APPROVAL CERTIFICATES FROM BOEING AND AIRBUS. Failure in doing so will result in a supplier being disqualified.

PRICING Appendix 2 Tenders are requested to provide a comprehensive breakdown of the pricing structure.

CONFIRMATION OF INTENTION TO QUOTE AND Appendix 3 CONFIDENTIALITY (To be submitted before Tender Documents Submission, via fax)

COMPANY NAME: ______

CONTACT PERSON: ______

REGISTRATION NUMBER: ______

REQUEST FOR TENDER NO: SAAT 01/13

We confirm receipt of the above Request for Tender and all specifications, drawings and exhibits and confirm our intention to submit a Tender for the GOODS all in accordance with the Request for Tender. We undertake to keep secret and hold confidential all information relating directly or indirectly to this Request for Tender, the GOODS as defined in the Request for Tender and warrant that the same shall not be divulged by ourselves, our employees or agents to any third party (including prospective Sub-contractors / Suppliers) save to the extent necessary for the preparation of our Tender, and then only on the basis that the recipient of such information shall be bound by similar confidentiality undertakings to those undertaken by ourselves hereunder. We, as Tenderers, realize and agree that the fact that we have been invited to submit a Tender and all matters relating to SAAT's handling of the proposed Contract or the selection of Suppliers or potential Suppliers are strictly confidential as among Tenderer and SAAT. All announcements as to pre-qualification, Request for Tender, Tenderers and Contract negotiations will be made by SAAT only. The above undertaking shall survive the Tender and any subsequent Contract.

We further undertake to return the RFB and all specifications, drawings and exhibits if we are not successful with this enquiry or decide not to submit a Tender.

Communication with Tenderer: All further communications concerning this Request for Tender should be addressed for the attention of our ,

Telephone: , Fax:

Yours faithfully 1/9/2018 Page 13 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER Date: ______

Signature by Tenderer’s Representative who hereby acknowledges that he/she is duly authorised to commit the Tender to this undertaking.

Kindly acknowledge receipt of this Tender and indicate your agreement with the above- mentioned by return message to Fax: 27 11 978-2638

COMPANY DOCUMENTATION Appendix 4

Please attach the listed documents:

1. Financial Statements Please attach your Audited Financial Statements for the past two years for companies OR the two previous year’s financial statements and officer’s report for Closed Corporations (CC). 2. Company or CC Registration Documents 3. Companies Shareholders Certificate 4. Current SARS Tax Clearance Certificate (or proof of application for same) 5. Cancelled blank cheque with Company/CC name. 6. Company BEE documents 7. The original deposit slip to confirm intention to tender

Board Resolution / Delegation of Powers Appendix 5 Please attach, this existing format is a sample:

Company Name Here MINUTES OF [Company Name] BOARD MEETING HELD IN [Place] ON [Date]

PRESENT: Surname [Chairman] Surname [Designation]

RESOLVED THAT: The company will Tender for SAA Technical (Pty) Limited, Tender Number: SAAT 01/13

FURTHER RESOLVED THAT: Name [Company Representative] has been duly authorized to sign all documents relating to this Tender on behalf of [Company Name].

1/9/2018 Page 16 of 20 STRATEGIC PROCUREMENT REQUEST FOR TENDER Name Surname [Chairman] Witness

Name Surname [Designation] Witness

REFERENCES Appendix 6

List three (3) references of present or past, customers, other than SAA/SAAT where service of similar scope has been performed in the last 12 Months. This information is compulsory.

1. Company name: ______

Scope of Work: ______

______

Contact Person & Title: ______

Telephone: ______

Address: ______

______

2 Company name: ______

______

Telephone: ______

Address: ______

______

3. Company name: ______

______

Telephone: ______

Address: ______

CHECKLIST Appendix 7 We the undersigned submit this Request for Tender in accordance with the conditions contained in the referenced RFT document and attach the documents required:

No. Documents submitted N/A Yes No Cover Letter Appendix 1 Scope of Services Appendix 2 Pricing Appendix 3 Confirmation of Intention to Quote Appendix 4 Company Documentation Appendix 5 Board Resolution Appendix 6 References Appendix 7 Checklist

Signatures: ______

Print Name: ______

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