Transcript NON-STATUTORY AUDIT SERVICES

Clarification Meeting : CORP 3019R
THE PROVISION OF NON-STATUTORY AUDIT
SERVICES FOR ESKOM HOLDINGS SOC LIMITED FOR
A PERIOD OF THREE (3) YEARS.
Capricorn 1 Boardroom, MWP
10 March 2015
Agenda and Presenters
SAFETY EVACUATION
SAFETY REPRESENTATIVE
GROUP COMMERCIAL PROCESS
Refilwe Tshosa
HIGH LEVEL REQUIREMENTS FOR NONSTATUTORY AUDIT SERVICES
Ishan Bhowani
TECHNICAL CRITERIA
Jacques van Oordt
QUALITY
Sipho Sambo
SHE
Mikateko Chauke
SD&L
Ishmael Modiko
7/7/2015
2
Commercial
Refilwe Tshosa
Commercial Process
 Eskom’s tender process consists of the following stages:
Stage
Details
Key Dates
Issue an open tender
•
Eskom Tender Bulletin
•
02 March 2015
Clarification Meeting
•
For bidders
•
10 March 2015
Closing Date
•
Deadline for submission
•
31 March 2015
Evaluation of RFP submission
•
Commence with Evaluation
•
April 2015
•
TBA
Award of the Contract
 This is a non-compulsory clarification session.
 The validity period for the tender is 180 working days from tender closing date.
 Clarification questions will be received until: 26 March 2015
 Eskom Representative details:
Refilwe Tshosa
[email protected]
7/7/2015
4
Tender Data
The tender shall be submitted as follows:
• one (1) printed original,
• one (1) copy of the original
Eskom reserves the right NOT to evaluate the tender; if the above is not adhered to the tender
will be disqualified.
The RFP shall be addressed to Eskom Holdings SOC Limited as follows:
•
Confidential
•
Panel for Non-Statutory Audit Services.
•
CORP: 3019R
7/7/2015
5
Tender Data
The place for delivery of the tender is Eskom’s Tender Box located at
•
ESKOM HOLDINGS SOC LIMITED
•
1 MAXWELL DRIVE
•
MEGAWATT PARK
•
SUNNINGHILL
•
Main Reception
•
Tender Office
The Tender Box is accessible from 06:00 to 18:00 (Monday to Sunday) and the
Tender Office hours are from 08:00 to 12:30 and thereafter 13:30 to 16:15 (Monday to
Friday only).
7/7/2015
6
Tender Returnables
7/7/2015
7
Evaluation Methodology
• Evaluation Methodology and Criteria
• The suppliers will be evaluated according to the Preferential Procurement Policy
Framework Act (PPPFA) process, where a 5 step evaluation process will be followed in
order to evaluate the supplier response for the non- statutory service panel:
• Step 1 Basic Compliance
•
Tender returnable submissions will be reviewed for compliance with all submission
requirements to ensure that mandatory requirements are met
.
• Step 2 Functional Analysis
•
7/7/2015
The functional analysis will include technical and quality and tenderers will be expected to
score an overall 80% functional threshold to proceed to the next step of evaluation.
Functional Evaluation Criteria
Weighted Average
Technical
80%
Quality (All or Nothing)
20%
Total
100%
8
Evaluation Methodology
Step 3 Price and Preference Analysis
•
•
•
Proposals will be evaluated on price which will be allocated 90 points and B-BBEE which will
be allocated 10 points.
Once the price and preference analysis is complete, and objective criteria will be applied.
The fees will be standardized by using the Auditor General as a benchmark. The out of
range proposals will be negotiated.
Step 4 Financial Analysis
•
An analysis of the tenderers’ financial statements will be conducted for the purposes of
establishing the tenderers financial viability and the ability to meet all of its contractual
obligations for the duration of the contract, should the tenderer be awarded the contract.
Step 5 Objective Criteria
•
The objective criteria will be applied after evaluation, and are generally the criteria/ conditions
specifically linked to contract award. The criteria will consist of the following
:
• Quality
• Safety, Health & Environmental and
• Supplier Development and Localisation
7/7/2015
9
Task Order Allocation
The external assurance provider selection criteria below will play a critical role in
the allocation process by ensuring fair work allocation.
COMPONENT
DESCRIPTION
Risk and Complexity
The level of risk and complexity of the project scope needs to be assessed
against the external assurance provider’s capabilities.
Cost
In line with the proposed pricing strategy, the external assurance provider will
be requested to price for the variable portions (Site Specific)
Localisation
This is to ensure that the objectives in terms of Skills Development, Job
Creation, Subcontracting takes place and are achieved.
Performance
This will be based on an auditable paper trail, whereby an External assurance
provider’s performance in executing works for Eskom will be taken into
account in terms of technical performance e.g. (Non-Conformance Report,
Quality).
The above criteria will take into account the number of active contracts
awarded to an External assurance provider. A service Provider may not be
asked to provide a quotation if they have already been awarded projects for
both probity and Assurance review, this is to ensure that all panel members
do benefit over time.
Availability
7/7/2015
10
Thank you
Questions?
Technical – A&F
Ishan Bhowani
Contract Overview
Ishan Bhowani
Senior Manager: Assurance and Forensic (A&F)
• High level requirements for non-statutory
audit services
7/7/2015
13
Contract Overview
• Non-statutory audit services is required due to various initiatives
including but not limited to:
• Increase in significant commercial transactions,
• Expansion programme,
• Limited Assurance resources,
• Eskom needs a number of reputable and well-resourced external
assurance providers to provide the services required.
• A&F reports:
• Administratively - Office of the Chief Executive (OCE),
• Functionally – Audit and Risk Committee (ARC).
7/7/2015
14
CONTRACT OVERVIEW
• The panel will report to A&F.
• The panel of auditors will provide a variety of services, which include
assurance and advice in respect of Eskom and its subsidiaries.
• Contract will be for a 3 year period.
• Maximum of 20 firms will be selected for the panel.
7/7/2015
15
CONTRACT OVERVIEW -SCOPE OF WORK
The panel of non-statutory auditors will provide a variety of services which
include assurance and advice in respect of Eskom and its subsidiaries. The
services will include:
• Proactive reviews of the commercial tendering process for commercial
transactions greater than R300M.
• Probity reviews for the commercial transactions that are to be adjudicated by
Eskom Executive Committee Procurement (EXCOPS) and Board Tender
Committee (BTC).
• Reviewing the adequacy and effectiveness of business processes, including
governance, risk management and controls;
• Co-sourcing of resources
7/7/2015
16
REPORTING STRUCTURE
OCE
Audit Risk Committee
Senior General Manager
Assurance and Forensic
Mr Molefi Nkhabu
Senior Manager
Mr Ishan Bhowani
Middle Managers
Mrs Arthi Govender
7/7/2015
Mr Jacques van Oordt
17
MINIMUM REQUIREMENTS
• Minimum requirements for each project from successful service providers:
• Proposals
• Engagement letter in a pre-defined format
• Final Report and Presentation in a pre-defined format
• Timesheets in a pre-defined format
• Attendance for specific committees to present final results
7/7/2015
18
Thank you
Questions?
Technical Criteria
Jacques van Oordt
Middle Manager: Assurance and Forensic
• Overview of the Technical Criteria
7/7/2015
20
Technical Criteria
TECHNICAL CRITERIA
CAPACITY, KNOWLEDGE AND EXPERIENCE (40%)
AUDIT METHODOLOGY/APPROACH (45%)
QUALITY CONTROL (15%)
TOTAL FOR TECHNICAL CRITERIA (100%)
NO
1
DETAILS
CAPACITY, KNOWLEDGE AND EXPERIENCE - 40%
Available capacity to complete the work required
Total capacity in South Africa:
Directors
Managers
Staff:
Professionals
Number of auditors (excluding admin staff)
Trainees
1.2 Relevant knowledge to complete the work required
Location of offices in South Africa:
Number of assurance reviews conducted on procurement transactions. List of procurement
transactions with the relevant company details
The firm should demonstrate the experience of the individual responsible for the account.
(Partners, directors, specialists, managers, senior, team):
- If a Director is responsible for the Eskom account as the main contact
- If a Manager is responsible for the Eskom account as the main contact
- If any other level is responsible for the Eskom account as the main contact
7/7/2015
21
Technical Criteria
TECHNICAL CRITERIA
NO
DETAILS
1
CAPACITY, KNOWLEDGE AND EXPERIENCE - 40%
1.3 Does the company have the following type of specialists available:
(For purposes of evaluation demonstrate that the individual has more than 5 years’ experience in the
relevant field/or a post graduate degree/diploma in the relevant field)
- Procurement/Commercial specialist
- Risk management specialist
- Public sector/PFMA/PPPFA specialist
- Corporate governance specialist
- IT Audit
- SHEQ Specialist
2
AUDIT METHODOLOGY/APPROACH - 45%
2.1 Provide detail of the firm's audit methodology, approach and technology used.
If adequate details provided that describes the following:
- sound methodology (Planning, Fieldwork, Reporting, Follow-up),
- efficient technology (automated working paper system, CAATs),
- description of process for continuous improvement
Does the firm ascribe to the following.
Proof of being accredited to these bodies (or Director/Lead Auditor/Partner) should be provided:
- SAICA – (South African Institute of Chartered Accountants)
- IRBA – (Independent Review Board of Auditors)
- IIA - (Institute of Internal Auditors).
3
QUALITY CONTROL - 15%
3.1 Provide the firms most recent External Quality Review (not older than 5 years).
Provide the firm(s) quality control system and quality control policies and procedures.
7/7/2015
22
Thank you
Questions?
Quality
Sipho Sambo
Quality
• Functional Criteria - 20% Weighting
• Form A and Form B
• To be signed- All or nothing approach.
• Eskom reserves the right to disqualify or score the Supplier 0 if the documents are not
signed.
• Quality Objective Criteria
• ISO 9001 Certificate or Objective evidence of a documented Quality
Management System (QMS) that is not certified but complies with ISO
9001 standard.
• Evidence of QMS in operation (Ref QM-58 Clause 3.2.1)
• Contract Quality Plan as per Scope of Works (Ref ISO 10005 )
7/7/2015
25
Thank you
Questions?
[email protected]
SHE
Mikateko Chauke
SHE Returnable - Annexure C 2
1. Acknowledgement Form for Eskom’s Rules and Requirements (in Annexure B)
2. Safety, Health and Environmental Plan for Scope of work not limited to the following:
• SHE organization within the Company-Responsibility & Accountability
• SHE Incident management
• Waste management
• PPE- Personal Protective Equipment
• Emergency planning and fire risk management
• Vehicle and driver behavior safety
• Contractor or supplier selection and management
• Competency, training, appointments
• Communication and awareness
• Management commitment and visible felt leadership
28
SHE Returnable - Annexure C 2
3. Baseline SHE Risk Assessment (BRA)
• Identification, assessment and management of Safety, Health and Environmental
risks related to the scope of work. The methodology used for the risk assessment
must be provided together with the BRA
4. Valid Letter of Good Standing (COIDA or equivalent)
• It is essential to ensure that all suppliers which perform work for Eskom / at Eskom
premises be registered with the Compensation Fund in terms of the Compensation
for Occupational Injuries and Diseases Act (COID Act). In order to ensure that the
above mentioned is adhered to, the tenderer needs to submit a valid letter of good
standing from the Compensation Commissioner, based on Legislation in section
89, of the Compensation for Occupational Injuries and Diseases Act.
5. SHE policy signed by CEO/ MD• Comply to OHS Act Section 7 or OSHAS 18001
7/7/2015
29
Thank you
Questions?
Supplier Development
and Localization
Ishmael Modiko
SD&L MANDATE
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
32
7/7/2015
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
•
Creation of new jobs by suppliers as a direct result
of Eskom business
Supplier development
•
Providing a platform to develop emerging
suppliers, and further contribution to local
developmental opportunities for national and
international suppliers
33
7/7/2015
33
SD&L EVALUATION CRITERIA (CONDITION OF
TENDERING)
Specific objectives of Tender (Application of the objective criteria in terms
of section 2(1)(d-f) of PPPFA)
The objective criteria for this tender are the following:
o Transformation of this sector by the appointment of a Black Owned Firm(s) that meets all functionality
requirement,
o Job creation for previously disadvantaged people.
o Development of small black suppliers
To achieve the above the following aspects will apply


Appoint a Black Owned firm ( more than 51% shareholding) or
Joint venture where the lead firm with more than 51% black owned
NB. The joint venture may be:
i)
Black Owned Company and Black Owned Company or
ii) Black Owned Company (Majority shareholding) and Non-Black Owned Company or
iii) Black Women Owned and Black Owned Company or
iv) Black Women Owned (Majority shareholding) and Non-Black Owned Company

In the even where task order is issued to a Generic Company, 30% of their task order value shall be spent with
a Black Owned Company (EME) (where necessary and the list of qualifying subcontract will be provided).
 Please note the above Specific objectives will not have a weight barrier for evaluations but Eskom reserves a
right to award this contract using this conditions of tender,
 Local content and skills development will form part of negotiation prior tender award.
7/7/2015
34
SD&L EVALUATION CRITERIA UNDER PPPFA
The evaluation criteria seeks to increase SD&L evaluation
score allocation in the overall scoring and to ensure all
dimensions of local development are considered:
10%
 B-BBEE - Levels (see
below score card)
7/7/2015
35
B-BBEE Evaluation Scorecard
36
7/7/2015
36
SD&L Compliance Matrix example {It will form
part of negotiations}
Skills Type
Estimated number of candidates to trained
Learnerships
30
In-Service training (Audit related)
20
IT Risk Auditor
12
Junior Auditor
10
Bursaries (Audit students)
20
Total number of 92 candidates will benefit through this transaction
•
Successful supplier will be obligated to train 1 candidate for every R3.2 Million cumulated through task
order awarded to the supplier; this obligation will be for the duration of the contract. The duration of the task
order will not be linked with the supplier’s obligation to train; therefore the supplier will have to ensure that
the skills committed are successfully achieved by the end of the contract period. Skills candidates shall be
sourced from previously disadvantage groups in South Africa. 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. The supplier may develop the candidates directly, through their supply network or through the
SETA accredited training providers.
•
Skills development candidates should be currently unemployed graduates from FET Colleges and
universities and/or matriculants. The composition of the candidates shall be representative of the population
demographics of South Africa. The supplier will be provided will the list of skills as per respective discipline
to choose from, this will mean this supplier will train candidate with skill type that is relevant to their area of
expertise.
37
7/7/2015
Thank you
Questions?
[email protected]