Supplier Development Localisation and Industrialisation - Execution Support Ishmael Modiko - Vehicle Accessories Compatibility Mode
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Supplier Development Localisation and Industrialisation Execution Support Ishmael Modiko
We have a mandate to contribute positively to the
development of the country
Our mandate is to achieve maximum and sustainable
local development impact through leveraging Eskom’s
procurement spend in a manner that allows flexibility within
the business in order to accommodate government local
development initiatives and policies
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SD&L measures impact along these key
performance areas
Key performance areas Definition
Skills development • Increasing the skill base (number and skill level) of
South African workers in areas relevant to the
energy sector and where there is a national
scarcity of skills
Local content • Utilisation of Eskom and suppliers’ spend to
develop South African based suppliers relevant to
the energy sector (focusing primarily on BBB-EE
Black Owned and youth owned suppliers)
Industrialisation • Utilisation of Eskom and suppliers’ spend to foster
the establishment of new competitive industries in
the energy sector
Employment and job • Creation of new jobs by suppliers as a direct result
creation of Eskom business
Supplier development • Providing a platform to develop emerging
suppliers, and further contribution to local
developmental opportunities for national and
international suppliers
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One of the growing issues in South Africa 4
SDL&I evaluation criteria (Condition of Tendering)
Condition of tender:
Eskom has decided to apply pre-qualifying criteria to advance certain designated groups as follows according to Specific Tendering Condition
(Application of other criteria in terms of section 2(1) (d-f) of PPPFA and PPPFA regulations 2017 4(1) (a and c):
To achieve the above the following aspects of PPPFA 2017 pre-qualification regulation 4 (a and b) will apply
Appoint tenderer that has B-BBEE status of level 1-3 (option a)
Joint Venture will be allowed but they need to meet above special condition of tendering
Note: SD&L undertaking will be negotiated before contract award
Incubating: Successful tenderer will required to use 5% of contract value to incubate EME/QSE’s that are 100% owned. The successful supplier will
train, coach and mentor that incubatee until they graduate. Regular monitoring should be done and reported to Eskom contract management as well as
SD&L monitoring team, not limited to Eskom doing audit on site. Thereafter start subcontracting 25% of scope of work to EME/QSE’s that are 100%
owned by Black owned and/or at least 51% or more owned by Black Youth owned and/or at least 51% or more owned by Black women owned and/or
at least 51% or more owned by Black People with Disabilities.
Eskom will be procuring this services from local service providers, therefore local Content to South Africa will be 100% since Eskom do not expect any
products or skills to be imported for these transaction
SDL&I requirement shall be negotiated, agreed to and will form part of the NEC contract then they shall be monitored on quarterly basis throughout the
duration of the contract to ensure all the obligations and undertakings are fulfilled. Failure not to achieve agreed SDL&I requirement will result in 2.5%
and will be taken off from all outstanding payment or future invoice and only be released after SDL&I obligations has being satisfied.
Please note the above pre-qualification requirements will be a gatekeeper of this tender and Eskom reserves a right to award this contract using this conditions
of tendering,
Local content, industrialisation, supplier development and skills development will form part of negotiation prior tender award.
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B-BBEE certification/sworn affidavit evaluations
Points allocation Pre-qualification (gatekeeper)
The tenderers will be evaluated in accordance to PPPFA
regulation of 2017 4(A&B), where the suppliers will be allocated
10 points as per B-BBEE scorecard below (valid B-BBEE
10% certificates that are SANAS accredited or SWORN AFFIDAVIT
that is completed, signed and stamped as a mandatory
B-BBEE - Levels
returnable). The tenderers will be required to submit their valid B-
(see below score card)
BBEE certificates indicating level 1-3, failure not to submit a valid
B-BBEE certificate or submit B-BBEE certificate that has expired,
that will result in supplier being disqualified. The tenderers that will
be Joint Venturing (JV) will be required to submit a valid SANAS
accredited joint B-BBEE certificate that also reflects level 1-3,
failure which, the JV will be disqualified.
Eskom requires tenderers to submit an SD&L Undertaking as per the
Please sign and following specified targets regarding the various SD&L initiatives. The SD&L
return SD&L Undertaking requires tenderers to commit to various SD&L objectives such as
undertaking for job creation, skills development, enterprise development etc. The SD&L
evaluation whether Undertaking is required as a returnable document and incorporated as a
is accepted/reject condition of contract with the successful tenderer. Tenderers who fail to
then negotiate
submit the SD&L undertaking within such period as Eskom may require, will
be disqualified, however, if tenderers submit the Undertaking but do not meet
the targets in full, the tenderer will not be disqualified. Eskom may use this as
a negotiation point.
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B-BBEE Evaluation Scorecard (90/10)
Number of points Number of points
B-BBEE Status Level of Contributor
(90/10 system) (80/20 system)
1 10 20
2 9 18
3 6 14
4 5 12
5 4 8
6 3 6
7 2 4
8 1 2
Non-compliant contributor 0 0
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SDL&I skills development targets {It will form part of
negotiations} Vehicle Accessories
Skills Type Estimated number of candidates to trained%
Learnership (Industry Related) 30%
Bursaries (Industry Related) valued at R50 000 70%
• Successful tenderer will be obligated to train 1 candidate for every R4 Million accumulated through task
orders/instructions/purchase order awarded to the service provider; this obligation will be for the duration of the contract
however supplier needs to demonstrate positive progress on quarterly basis. The duration of the task order will not be linked
with the supplier’s obligation to train; therefore the service provider will have to ensure that the skills committed are
successfully achieved as per work allocated to them. Skills candidates shall be sourced from previously disadvantage
groups in South Africa, particularly at the site where the services will be taking place. The purpose is to provide these
candidates with skills and workplace experience in order to increase the opportunity for them to be employable within the
industry as well as assist those who are struggling financial during their schooling. The service provider may develop the
candidates directly, through their supply network or through the SETA accredited training providers or relevant body.
• R50 000 Bursary scheme will cover any outstanding fees or accommodation and meals or books or registration fee and one
year fees or combination of all the above depending on the situation. The amount can be used to benefit more than one
student but it should be fully utilised. The supplier will be fully responsible for the process to appoint the students. The
supplier will also work together with universities to get appoint students and the universities will generate invoices for
payment done by supplier. Thereafter submit proof of payment and other necessary documents to Eskom monitoring and
reporting team.
• Skills development candidates should be currently unemployed graduates from Colleges and universities and/or
matriculants. The composition of the candidates shall be representative of the population demographics of South Africa
particularly at the site where delivery is taking place
• The monitoring and report will provide implementation schedule and supplier data collection templates to ensure that the
above obligations to train candidates are achieved successfully through regular monitoring of task order value awarded to
suppliers.
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Success Stories
2019/06/20 9
GX success story
Eskom target was 21
candidate
GX achieved 21
candidates to date
Jobs created: 61
Job retained: 58
2019/06/20 10PPE panel contract
Created Jobs: 15
Created Jobs: 4
Issued 11 Bursary
Issued 1 Bursary
Learnership: 13
candidate benefited
Invested in
refrigerated bakkie/
Invested in delivery
borrowed cold room
bakkie/ machinery/
storage/officesWho is Econ Oil
Econ oil is 100% black
woman owned
company, that started
as non-value adding
distributors to
blending and
transporting fuel oil.
They also managed to
open few deports in
order to improve turn
around time. Today
Econ Oil is supplies 16
million litres of fuel oil
per month, all because
of Eskom suppliers
development initiative.
12FFS success story
6 black youth
companies
got bakkies
tanker/pump
each and 5
schools got
science lap
kits
2019/06/20 13Engineering and fleet management success stories
2019/06/20 142019/06/20 15
SHEQ Contract
2019/06/20 16SHEQ Contract
2019/06/20 172019/06/20 18
64 Students Benefited
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BURSARY Insert copy or paste
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STUNDENTS2019/06/20 20
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