MINUTES OF THE BRIEFING SESSION HELD ON … Session... · be satisfied during the contract...

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RT3-2018 SUPPLY, DELIVERY, INSTALLATION, COMMISSIONING AND MAINTENANCE OF OFFICE

AUTOMATION SOLUTIONS FOR THE STATE

MINUTES OF THE BRIEFING SESSION HELD ON 07/05/2018 VENUE: NATIONAL TREASURY, 40 CHURCH SQUARE, PRETORIA

TIME: 10H00 Disclaimer: minutes are captured to provide the substance of the discussions and may not be for word by word as per the meeting proceeding. Other discussions are captured after corrections were made. CHAIRPERSON: MS KWANELE MTEMBU

1. PROCEDURAL MATTERS Session led by Ms Phumzile Maluleke (PM) from 10h00 to 10h05

1.1 Welcome, Introductions and Housekeeping

PM declared the meeting opened. The cross functional sourcing team (CFST) was asked to introduce themselves. There were two (2) attendance registers for suppliers and CFST. PM indicated that the attendance register is written on top for easy recognition. The direction to the bathrooms was indicated, together with the refreshments station including water on top of the tables. Mobile phones were requested to be put on silent so not to disturb the meeting. Questions were requested to be written down and dealt with during the Question and Answer session towards the end of the meeting. It was clarified that referencing throughtout the meeting is made to the Special Conditions of Contract (SCC). There was an announcement regarding the venue (103 at 240 Madiba Street, Pretoria) of another meeting for employees who might have attended the wrong meeting. There were no changes to the agenda.

1.2 Attendance Registers are attached as Annexure 1A (CFST) and Annexure 1B (Suppliers)

2. SECTION A : GENERAL BID CONDITIONS

Session led by Mr Ntando Sangweni (NS) from 10h06 to 10h30 2.1 The Special Conditions of Contract (SCC) will prevail over General Conditions of Contract should there

be a conflict as on Page 5 of 42. 2.2 The Closing Date and Time is 1 June 2018 at 11h00 as on of 42. 2.3 Submission of proposals are detailed on Section 3.1 and 3.2 of SCC including how to submit the RFP

response. Submission should be in two (2) methods, portal web link https://portals.treasury.gov.za/sites/ContractResponses that will also close on the 1st of June 2018 at 11h00 and by the Tender Information Centre (TIC) and the address is on section 12.1, page 9 of 42 of the SCC. Submission of the RFP responses to the TIC should be 1 original hard copy document, 2 copies of the original and 1 electronic copy as per section 3.2 of SCC.

2.4 Format of submissions, Section 3.5 of SCC on Page 6 of 42 The sequential format is on section 3.5 as Part 1 to Part 4. Part 1 is Administrative Complaince documents, Part 2 is Pre-Qualification Criteria, Part 3 is Technical Functionality comprising of Part 3a to Part 3c and Part 4 is Alternative Proposals

2.5 SBD Forms

All SBD forms must be completed and submitted on the closing date.

https://portals.treasury.gov.za/sites/ContractResponses

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SBD 1: bidders are to indicate the model bidding for and bidders can bid for more than one (1) model.

SBD 5: imported content equalling to or exceeding $10 million. Number 2 and 3.2 of the SBD will be satisfied during the contract execution and not at the award of contract since the quantities are not guaranteed.

TCBD 1: if a bidder is sourcing from a 3rd party, it must be completed. 2.6 Tax compliance requirements on Page 7 of 42. No hard copies of tax clearance certificates must be

submitted but according to SBD 1 (pin or Central Supplier Database registration number).

2.7 Late bids on Page 7 of 42. They will not be accepted. Even few seconds means the RFP response is late. The same applies for the portal submission.

2.8 Supplier due diligence / verifications on Page 8 of 42. During the bid process, where required

verifications will be conducted by the CFST.

2.9 Communication on Page 8 of 42. No communication by bidders to any of the CFST members regarding this RFP during the procurement process. Communication should be in writing to the provided email address on section 3.1 of the SCC.

2.10 Bid enquiries closing date on Page 9 of 42. All enquiries regarding the RFP should be received by the

latest 25 May 2018 @23h59 in order to allow responses and communication of all queries received.

2.11 Bid enquiries email address on Page 9 of 42. There is a dedicated email address [email protected] for the RFP. No emails should be sent to any of the CFST members as this is a formal competitive bidding process and will be audited.

2.12 Demonstration of the submission of the RFP responses on eportal took place.

(1) Register

(2) CSD Registration

Number

(3) Post inserting username and passowrd, click ok to

login

mailto:[email protected]

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Bidder is required to register

User name should be the CSD registration number (MAAA…)

Password can be anything. Post registration, bidder will insert the CSD registration number and created password and click ok

To upload documents, bidder should click new document

(4) Click new document

(5) Browse for document to

upload

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Browse for the document you want to upload

Select document to upload

Click open to upload the document

You can add any comment(s) about the document you are uploading

Click ok to save uploaded document

Once uploaded it cannot be deleted

Browse for the document you are about to

upload (6) Select document from a

folder for uploading

(7) To upload document click

open

(8) Write any comment(s) about

the document uploaded

(9) click ok to save document

uploaded

(10) Uploaded documents will

appear here

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Uploaded documents will show under upload

Once completed uploading documents, click next to the name on the far right corner in front of the question mark for the drop down menu

Click sign out

(11) Once completed uploading documents, click

next to the name for the drop down

(12) click sign out

(13) click yes to close the portal

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3. SECTION B1: TERMS OF REFERENCE Session led by Mr Izak de Villiers (IdV) from 10h31 to 11h15 The sequence of the session included

Contract name change,

Comparison with previous RT3,

Technical solution requirements,

Procurement options, and

Service delivery phases. The focus of the new transversal contract is on the provision of a solution and not just the equipment, hence the name of the transversal contract has been revised from office equipment and labour saving devices to office automation solutions. Installation and once off end user training of 5-10 people will be on a once fee

that can be incorporated into the price. There will be assessment of requirements prior to quoting as this bid is

not just about price but Total Cost of Ownwership (TCO) and bidders are more than welcome to add on the scope of solution, and eventually advise clients on what types of equipment can be suitable for their office environments as per the analysis outcome. There are improvements built in the normal equioment/hardware solution. Bidders were shown how to respond to the Multi-Functional Printers (MFPs), Shredders and the completion of all the mandatory highlighted items for compliance. Failure to complete the excel sheet including the pricing will disqualify the proposals. Bidders can exceed the specifications/scope of solutions if need be and delete the items not bidding for. Shredders need to be binded with the on-site Service Level Agreement (SLA) and priced. The mandatory accessories and services includes:

Device management tool, Installation and secure configuration, Training, and Support and maintenance, continuous monitoring, reporting and optimisation.

The new transversal contract aims to address shortcomings of the current transversal contract RT3-2015 with minimum disruption. It further aims to improve cost-effectiveness and focus on TCO. The traditional rental + copy charge model remains on the new transversal contract. There will be increased Information and Communication Technology/ies (ICT), security, automation focus including added software, service and training requirements. There is introduction of the automated reporting and fault logging, assessment questionnaire, new policies and processes. There is also a new solution option: Managed Print Service (MPS) for more effective use of equipment that includes additional higher-level software, services, ad-hoc assessment to determine what exact functionality must be included in each specific solution (project-based). The focus will be more on multi-device solution vs. single box-drop. There is also a new payment option: Prepaid Bidders were shown how to complete the technical functionality of the equipment as provided on an excel sheet named Annexure B Phase 3a. There are four (4) categories of equipment and SITA certification is required mainly on the Mono and Colour Multi-Functional Printers (MFPs) and maybe it will change overtime for Duplicators and Shredders.

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There are four (4) categories which are Mono MFPs, Colour MFPs, Duplicators and Shredders. The office automation solutions should encoumpass the hardware (equipment), basic software, basic services, consumables, advanced services and advanced software. The completion of the technical functionality requirements must be done in excel, submitted in soft copy, a bidder is not allowed to mess up with the excel sheet as it is password protected. A bidder must comply with all mandatory lines. A bidder is to be aware of the mandatory versus optional lines on the excel sheet. Slide 17 of the briefing session presentation attached as Annexure 2, should be noted carefully. For the mandatory evaluation a bidder must be careful when answering. ―Yes! = comply fully with entire stated requirement, with no qualifications ―No! = everything other than Yes All specified components, accessories, services, software, etc. must be included in the quoted price. The evaluation process flow on slide 18 of the briefing session presentation was elaborated on. Procurement options as on section 16.4.1 on SCC page 12 of 42 from the transversal contract includes

Ad hoc User Requirement Analysis to be done per project Procurement options informed by analysis being a(n):

o Complete solution (MPS) – best practice implementation or o Equipment only (rental + click) or o Service/software only (e.g. additional training, print management tools) or o Accessories only (software, finishers, consumables) or o Combination of any/all options

End-users wil have an option to choose between Rental (30 days post invoice receipt) versus

Prepaid payment options Buy-back option: new client equipment that was procured outside RT3 transversal contract can be

bought-back by suppliers in provision of an ideal printing solution based on the assessment outcome. Contracts from RT3 cannot be settled but an assessment thereof should take place as on the implementation phase 1 of Figure 1 for optimisation of the entire environment.

Service delivery post award (Figure 1 on SCC page 16 of 42) was elaborated on and is self-explanatory. There were questions raised that are captured on Annexure 3.

4. SECTION B2: SPECIFIC BID CONDITIONS

Session led by Ms Kwanele Mtembu (KM) from 11h16 to 11h35 The sequence of the session included

Duration of Contract – Section 18 (Page 17 of 42). The transversal contract is for thirty-six (36) months with an option to extend for a periof of twenty-four (24) months at a zero (0%) percent rental. During the extended period it wil only be the usage (cost per page) that will be billed which should be inclusive of support and maintenance. Therefore the RT3-2018 transversal contract should not go beyond August

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2024 so that it is manageable. The SCC dates were explaining how the twenty-four (24) months extension will operate.

Poor performance - (Page 17 of 42) on the transversal contract will not be allowed. National Treasury is anticipating partnership with the panel of bidders and there will be remedial processes that will take place to determine poor performance to be detaled on the agreement that the panel of bidders will sign with the National Treasury.

Post award participation – Section 19.3 (Page 18 of 42). The transversal contract is open to all spheres of Government excluding the private sector. All bidders that will form the panel will be notified of new participants on the transversal contract. The list of participants will not be published on the National Treasury website.

Evaluation Criteria – Section 20 (Page 18-24) There are six (6) phases as indicated on section 20. Phase 1 is on the administrative compliance

which focuses on all the documentation required for submission as indicated on section 20.2. Format of submission is indicated on Section 3.5 (Page 6 of 42) The mandatory documents will render the bidder’s RFP response invalid (non-responsive) and

they are: o SBD forms (Annexure A) o Functionality Requirements & Pricing (Annexure B)

o Phase 2 – Section 20.3 (Page 20 of 42) is a pre-qualification criteria that requires main bidders to sub-

contract a minimum of 30% of the contract value to a NEW or EXISTING EME/QSE which is atleast 51% Black Owned that will provide the downstream activities. The main bidder is to indicate which services the sub-contractor(s) will perform. A bidder that does not meet the pre-qualification criteria as

indicated on section 20.3.1 will be disqualified and not be evaluated further on Phase 3.

o Phase 3 – Section 20.4 (Page 21, 32-34 of 42) is splitted into three (3) parts. Phase 3a is applicable to the functionality of the equipment irrespective of the model. Phase 3b is about the capacity and capability of the main bidders. The threshold for passing Phase 3b is 50% and Table 7 on Page 32 to 34 provides the evaluation elements and criterion to be met. Phase 3c is alongside Phase 3a and should be completed on the excel sheet.

o Phase 4 – Section 20.7 (Page 22 of 42) is splitted into two (2) parts. At the transversal contract level there will be no fixed prices but negotiated ceiling prices. The final TCO price will be at the institution level as the analysis will inform the optimum office automation solution. The award at the institution level will be ased on the functionality requirements together with the TCO pricing and not Price and B-BBEE.

Cost breakdown – Section 20.8 (Page 23 of 42) is required in line with Phase 3a. Bidders should itemise the cost into various components which are cost drivers including the sub-contracting cost portion and profit margin.

o Phase 5 – Section 20.10 (Page 24 of 42), negotiations at the transversal contract and institution level are part of this transversal contract.

o Phase 6 – Section 20.11 (Page 24 of 42), post negotiations the CFST will present the evaluation report to the Bid Adjudicating Committee for recommendation and appointment of the panel of suppliers.

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SECTION B2: SPECIFIC BID CONDITIONS CONTINUES (CONTRACT PRICE ADJUSTMENT) Session led by Mr Fanie Hanekom (FH) from 11h35 to 11h40 There will be no contract price adjustment for equipment rental throughout the transversal term contract period of thirty-six (36) months after a purchase order has been issued. The rental price will be fixed for the transversal term period of thirty-six (36) months and reduced by 100% for the extension period of twenty-four (24) months. There will only be contract price adjuments (CPA) for any new/additional equipment or solution procured during the transversal term contract as at the date of purchase. Annexure C detailing the Contract Price Adjustment will be issued on the 18th of May 2018.

5. SECTION C: AWARD CONDITIONS

Session led by Mr Sinethemba Mfokazi (SM) from 11h41 to 12h00 The sequence of the session included:

Award of contract – Section 22 (Page 24 of 42). The emphasis was placed on the fact that this transversal contract has the black economic empowerment at heart. The award of the transversal contract will be to a panel of suppliers at a National or Provincial level with sub-contracting of atleast 51% black owned companies for downstream activities at provincial level. The provinces will have an option between multiple main suppliers with a sub-contractor(s) at the provincial level hence the RFP was not structured to allow bidding by only local companies per province.

Empowerment targets – Section 23 (Page 25-27 of 42). There are goods and services on this transversal contract which are 100% locally manufactured and ring-fenced. The empowerment targets will be strictly monitored and will not be just on paper and the reporting requirements will be provided to successful main bidders. The National Treasury reserves the right as a condition to sub-contract post award including the ring-fenced locally manufactured goods and services.

In terms of enterprise development, the main bidders are required to develop the skills of the sub-contractor(s)’ resources, provide the sub-contractor(s)’ resources with practical experience and in doing so job creation will be achieved through the sustainable sub-contractor(s) business or new employment of the resources elsewhere. Main bidders will be required to indicate the number of jobs they intend to create. Compliance to the empowerment targets is key for this transversal contract and there will be measures in place for non-compliance.

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6. SECTION D: POST AWARD CONDITIONS

Session led by Ms Emmah Mashiane (EM) from 12h00 to 12h15 The sequence of the session included:

Agreement / SLA – Section 24.2 (Page 27 of 42). The panel of suppliers will sign an agreement with National Treasury. A participant will continue to sign an SLA with the selected supplier from the panel.

Procurement Guideline – Section 25 (Page 27 of 42). A procurement guideline will be available to assist end-user (especially supply chain management practitioners) on how to procure from the transversal contract including the selection conditions of the models. An example was made where quotations are requested from the transversal contract whereas the prices of the suppliers are visible on the transversal contract.

Monitoring – Section 26 (Page 28 of 42). There are four (4) monitoring targets for the transversal contract. The monitoring of current and new SLAs, bidder’s performance, sub-contractor(s)’ and empowerment targets.

Reporting – Section 27 (Page 28 of 42). Some of the requirements elements are indicated on section 27.2 of the SCC but will be detailed to the successful bidders. National and Provincial Treasuries foresee quarterly reporting by way of meetings and online reporting. Meetings will be scheduled post award in advance.

7. OTHER

KM discussed and emphasized the following matters from 12h16 to 12h25:

All the information (presentation, minutes, questions etc.) discussed during the briefing session will be uploaded on the National treasury (Transversal Contracts) website under a new folder RT3-2018.

The Annexure C for Cost Price Adjustment will be uploaded on the advertising of tenders portal www.etenders.gov.za where the bid is currently advertised.

Bidders to take note of the new developments (introductions to the transversal contract) being the printing policy, procurement guide, assessment questionnaire, and contracts that will be signed by the new panel of suppliers. The general conditions of contract together with the SCC will form the base of the agreement to be signed by the new panel of suppliers.

Where bidders believe that the SCC does not cover all requirements for office automation solution(s), alternative proposals may be submitted. They will be evaluated separately.

Current suppliers were urged not to take the RFP for granted and omit important or mandatory requirements as there is no automatic renewal of the panel of suppliers instead they will be disqualified.

Correction on the tender bulletin gazette was made in terms of the bid submission details on SCC being on 3.1 to 3.2 and not 3.4.

Bidders were requested not to memorise National Treasury bid processes and follow the lead of the contract manager. An example was made to the presentation of the sub-contractor(s) as required on Phase 2 during the bid process and also that there will be activities taking place within the bid process.

http://www.etenders.gov.za/

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Bidders were requested not to return the brifing session documents back and any irrelevant information. Any relevant information not requested should be clearly marked for consideration and relevance as the CFST will not have time to be considering irrelevant information as the new transversal contract should commence by 1 October 2018. An example was made as a submission of a tax clearance certificate as the bidder’s tax compliance will be verified through CSD/South African Revenue Services.

Bidders were encouraged to submit their RFP responses on time, even the day before to avoid working hard on the RFP response and it becomes late as it will not be considered.

The closing date was emphasized to be the 1st of June 2018 and not 1st of July 2018.

Questions were requested to be submitted to the provided email address until the closing date of the 25th of May 2018.

8. QUESTION AND ANSWER SESSION

Session led by Mr Goitseone Tong (GT) from 12h26 to 12h55 All questions received to-date including questions raised during the briefing session are attached as Annexure B

The first set of questions were received from Konika Minolta South Africa. They were read out and the CFST responded to the questions

Other round of questions were taken and responded to during the meeting, also included on Annexure B.

Bidders were requested to put their questions raised during the meeting in writing in order to share with the briefing session attendees and others who did not attend the briefing session via the website. The purpose is also to ensure that the questions raised during the meeting are responded to in full.

9. CLOSURE

Session led by Mr Vharughese Mammen (VM) from 12h56 to 13h00 The CFST together with the Suppliers were offered an opportunity for any closing remarks. The remarks shared emphasized the importance of sub-contracting at provincial level and the commitment of issuing the Annexure C of the SCC (Contract Price Adjustment). CFST and Suppliers were appreciated for the attendance and questions. The CFST is looking forward to the bidder’s RFP responses. Meeting was adjourned.

Minutes prepared by: Ms P Maluleke Date: 08 May 2018

Minutes reviewed and quality assured by Chairperson: Ms K Mtembu Date: 14 May 2018

MINUTES OF THE BRIEFING SESSION HELD ON … Session... · be satisfied during the contract...

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