Transcript SD & L Plan Master Pack

SD&L Presentation
SD&L Manager: Procurement CoE
Presented By: Bongani Madlala
Date: 21 May 2014
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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To support economic development, we have
distilled five main objectives from different
government developmental programmes
Programmes
Development objectives
ASGI-SA
NIPF
Transformation
Skills Development
B-BBEE
Job creation
NIPP
Localisation
CSDP
Industrialisation
IPAP
NGP
NDP
• We have aligned ourselves along development objectives rather than individual policy and
government programs
• This has allowed us to address the requirements of multiple programmes simultaneously, without
having to create new departments or functions
Source: Eskom Supplier Development and Localisation Strategy and Plan
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20: 15: 15 Strategy (2016)
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MYPD3: 8% vs 16% NERSA Award
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Alignment with Eskom’s Cost Cutting Initiatives
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RR Response Strategy = 20: 15: 15
Cost driven, transformational and aligned to the
government socio-economic development agenda;
Purpose: To facilitate and incubate the introduction of new
players within the target group and to keep jobs and
maintain our suppliers
Suppliers should also focus on assisting RR to reduce
operational costs and deliver greater value to Eskom;
We intend to reach a target of 50% new entrants by 2016,
broken down as follows;
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Need support from industry suppliers to achieve this
strategy.
The PPPFA enforces a two-stage review process
where bids are evaluated on functionality, price and
B-BBEE, influencing Eskom’s procurement policy
PPPFA Framework:
• PPPFA provides the conditions for preferential allocation and the evaluation of tenders as provided for in the Constitution
(Section 217)
• The PPPFA aims to ensure that procurement remains transparent and cost effective while allowing for a degree of
preferential allocation
• Under the PPPFA, a two stage tendering process is followed:
Stage 1
Basic
compliance
• Mandatory
Returnables
• B-BBEE
certificate
(no
mandatory)
Functional Analysis / Gate Keepers
Functionality
Functionality
• Technical
• Locality (e.g.
quality
delivery)
Thresholds
• Local content (if
designated)
• Technical
Stage 1 may include application of
specific goals
Stage 2
Preference Points
evaluation
• Price (80 or 90 points)
• B-BBEE scorecard (20
or 10 points)
Weighted score
Recommend Bidder
• Select tender with
highest points
• Contract must be
awarded to the
tenderer who scores
the highest points,
unless objective
criteria in addition to
the specific goals
justify the award to
another tenderer
Source: The Preferential Procurement Policy Framework Act, 2000 (Act no. 5 of 2000); Preferential Procurement Policy Framework Act 5 of 2000 Interim Strategy; Procurement Review Team Analysis
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SD& L application
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Complete and sign SD&L Document (gatekeeper)
First Tier Procurement Supplier – BBBEE Level 3, PPPFA subcontracting regulations
Awards of contracts to tenderers not scoring the highest number of points – PPPFA regulations
Two specific goals:
Hierarchy of supplier preference
20:15:15 procurement strategy
Preference to new (RR’s 20:15:15 procurement strategy) BO entities (51% or more) using Eskom’s
hierarchy of supplier of at least BBBEE level 3
Retain and /or improve BBBEE status level for the contract duration. Migration plan if preferred
supplier is BBBEE level 4 to 8 or non-compliant.
Localisation – all job creation and skills development beneficiaries shall be sourced within the 60 km
of project site
Job Creation: supplier proposal – target revenue driven
Skills Development: supplier shall develop 1 skill for every R1 million turnover threshold, per Skills
Development Table = 15 skills
2015/07/17
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