TRANSNET FRAIGHT RAIL, a division of

TRANSNET SOC LTD

Registration Number 1990/000900/30

[thereinafter referred to as Transnet]

REQUEST FOR QUOTATION [RFQ] No MMC-ERAC-VAR-015506

FOR THE: CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

SITE BRIEFING DATE: 18 SEPTEMBER 2014

VENUE: Transnet Komatipoort fuel Depot

Street Address: Off Bonkenburg Street

Town: Komatipoort

Province: Mpumalanga

Position: 100km East of Nelspruit

Latitude: S: 25° 26’ 12.52”

Longitude: E: 31° 57’ 06.90”

TIME: 11:00

FOR TECHNICAL ENQUIRIES CONTACT: SANELE MAZIBUKO (013) 658 2332 OR 060 560 2865

FOR COMMERCIAL ENQUIRIES CONTACT: NHLANHLA VILAKAZI (013) 656 4296

ISSUE DATE: 12 SEPTEMBER 2014

CLOSING DATE: 23 SEPTEMBER 2014

CLOSING TIME: 10:00

VALIDITY DATE: 31 DECEMBER 2014

Section 1

NOTICE TO BIDDERS

_____________________________________________________________________________________

Quotations which must be completed as indicated in Section 2 of this RFQ are to be submitted as follows:

METHOD: [Submit physically]

CLOSING VENUE: [Tender Box, Transnet Freight Rail Tender Advice Centre, Inyanda House 1, Ground Floor, 21 Wellington road, Parktown, Johannesburg]

_____________________________________________________________________________________

1 Responses to RFQ

Responses to this RFQ [Quotations] must not include documents or reference relating to any other quotation or proposal. Any additional conditions must be embodied in an accompanying letter.

On or after 12 SEPTEMBER 2014, the RFQ documents may be inspected at, and are obtainable from the office of Transnet Freight Rail Tender Advice Centre, Inyanda House 1, Ground Floor, 21 Wellington road, Parktown, Johannesburg.,

NOTES –

i. This RFQ tender document is available free of charge.

RFQ documents will only be available until 15h00 on Wednesday, 17th September 2014

Any additional information or clarification will be faxed or emailed to all Respondents, if necessary.

1.1 Delivery by hand

If delivered by hand, the envelope is to be deposited in the Transnet tender box which is located in the foyer on the ground floor, Inyanda House 1, 21 Wellington road, Parktown, Johannesburg, and should be addressed as follows:

THE SECRETARY

TRANSNET ACQUISITION COUNCIL

GROUND FLOOR

TENDER BOX

INYANDA HOUSE 1

21 WELLINGTON ROAD

PARKTOWN

JOHANNESBURG

2001

a) The measurements of the "tender box slot" are 500mm wide x 100mm high, and Respondents must please ensure that response documents or files are not larger than the above dimensions. Responses which are too bulky [i.e. more than 100mm thick] must be split into two or more files, and placed in separate envelopes, each such envelope to be addressed as required in paragraph Error! Reference source not found. Above.

b) It should also be noted that the above tender box is located at the main entrance and is accessible to the public 24 hours a day, 7 days a week.

1.2 Dispatch by courier

If dispatched by courier, the envelope must be addressed as follows and delivered to the Office of The Secretary, Transnet Acquisition Council and a signature obtained from that Office.

THE SECRETARY

TRANSNET ACQUISITION COUNCIL

INYANDA HOUSE 1

21 WELLINGTON ROAD

PARKTOWN

JOHANNESBURG

2001

1.3 If responses are not delivered as stipulated herein, such responses will not be considered and will be treated as "UNRESPONSIVE."

1.4 No email or facsimile responses will be considered, unless otherwise stated herein.

The responses to this RFQ will be opened as soon as possible after the closing date and time. Transnet shall not, at the opening of responses, disclose to any other company any confidential details pertaining to the Quotations / information received, i.e. pricing, delivery, etc. The names and locations of the Respondents will be divulged to other Respondents upon request

2 FORMAL BRIEFING

A compulsory clarification meeting with representatives of the Employer will take place on Thursday 18th September 2014, 11H00 at Transnet – Transnet Komatipoort fuel Depot.

(For direction please contact: SANELE MAZIBUKO (013) 658 2332 OR 060 560 2865).

[Respondent to provide own PPE, transportation and accommodation].

TENDERERS WITHOUT A VALID TENDER DOCUMENT IN THEIR POSSESSION WILL NOT BE ALLOWED TO ATTEND THIS COMPULSORY CLARIFICATION MEETING/SITE INSPECTIONS.

3 Broad-Based Black Economic Empowerment [B-BBEE]

Transnet fully endorses and supports the Government’s Broad-Based Black Economic Empowerment Programme and it would therefore prefer to do business with local business enterprises who share these same values. Transnet will accordingly allow a “preference” to companies who provide a valid B-BBEE Verification Certificate. All procurement transactions will be evaluated accordingly.

3.1 B-BBEE Scorecard and Rating

As prescribed in terms of the Preferential Procurement Policy Framework Act (PPPFA), Act 5 of 2000 and its Regulations, Respondents are to note the following:

 Functionality is included at a pre-qualification stage with a prescribed percentage threshold of 70 (Seventy points).

 Proposals will be evaluated on price which will be allocated 80 or 90 points and preference which will be allocated 20 or 10 points, dependent on the value of the Goods or Services.

 The 80/20 preference point system applies where the acquisition of the Goods or Services will be less than R1 000 000.00.

 If the 80/20 preference point system is stipulated and all Bids received exceed R1 000 000.00, the RFQ will be cancelled.

 The 90/10 preference point system applies where acquisition of the Goods or Services will exceed R1 000 000.00

 If the 90/10 preference point system is stipulated and all Bids received are equal to or below R1 000 000.00, the RFQ will be cancelled.

 In this RFQ, Transnet will use 80/20 preference point system prescribed in the PPPFA.

In compliance with the Government Gazette No 34612, Notice No. 754 dated 23 September 2011, as from 1 October 2011 valid B-BBEE Verification Certificates must be issued by:

(i) Verification Agencies accredited by the South African National Accreditation System [SANAS]; or

(ii) Registered Auditors approved by the Independent Regulatory Board of Auditors [IRBA], in accordance with the approval granted by the Department of Trade and Industry.

 Enterprises will be rated by such agencies based on the following:

a) Large Enterprises [i.e. annual turnover greater than R35 million]:

Rating level based on all seven elements of the B-BBEE scorecard

b) Qualifying Small Enterprises – QSE [i.e. annual turnover between R5 million and R35 million]:

Rating based on any four of the elements of the B-BBEE scorecard

c) Exempted Micro Enterprises – EME [i.e. annual turnover less than R5 million]:

In accordance with B-BBEE Codes of Good Practice [Statement 000, Section 4], any enterprise with annual total revenue of R 5 million or less qualifies as an EME.

 Automatic rating of B-BBEE Level 4 irrespective of race or ownership

 Black ownership greater than 50% or Black Women ownership greater than 50% automatically qualify as B-BBEE Level 3

Sufficient evidence to qualify as an EME would be a certificate (which may be in the form of a letter) from an auditor or accounting officer or a certificate from a Verification Agency accredited by SANAS. The certificate must confirm the company’s turnover, black ownership / black female ownership, B-BBEE status level and validity date.

Respondents are required to furnish proof of the above to Transnet. [i.e. a valid detailed scorecard as stipulated above in respect of Large Enterprises and QSEs, or a valid certificate in respect of EMEs].

Transnet will accordingly allocate a maximum of 10/20 [ten/twenty] points in accordance with the 80/20 / 90/10 preference point system prescribed in the Preferential Procurement Policy Framework Act

(PPPFA), Act 5 of 2000 and its Regulations to the Respondent’s final score based on an entity’s B-BBEE scorecard rating. [Refer Annexure A- B-BBEE Preference Points Claim Form for further details].

N.B. Failure to submit a B-BBEE certificate, which is valid as at the Closing Date of this RFP, will result in a score of zero being allocated for B-BBEE.

4 Communication

a) Respondents are warned that a response will be liable for disqualification should any attempt be made by a Respondent either directly or indirectly to canvass any officer(s) or employee of Transnet in respect of this RFQ between the closing date and the date of the award of the business.

b) A Respondent may, however, before the closing date and time, direct any written enquiries relating to the RFQ to the following Transnet employee:

Name: Prudence Nkabinde

Email: prudence.nkabinde@transnet.net

c) Respondents may also, at any time after the closing date of the RFQ, communicate with

Nhlanhla Vilakazi on any matter relating to its RFQ response:

Telephone 013 656 4296

Email Nhlanhla.Vilakazi@transnet.net

5 Tax Clearance

The Respondent’s original valid Tax Clearance Certificate must accompany the Quotation. Failure to provide this document with the RFQ submission will result in disqualification.

6 VAT Registration

The valid VAT registration number must be stated here: _______________________ [if applicable].

7 Legal Compliance

The successful Respondent shall be in full and complete compliance with any and all applicable national and local laws and regulations.

8 Changes to Quotations

Changes by the Respondent to its submission will not be considered after the closing date and time.

9 Pricing

All prices must be quoted in South African Rand on a fixed price basis, excluding VAT.

10 Prices Subject to Confirmation

Prices quoted which are subject to confirmation will not be considered.

11 Negotiations

Transnet reserves the right to undertake post-tender negotiations with selected Respondents or any number of short-listed Respondents.

12 Binding Offer

Any Quotation furnished pursuant to this Request shall be deemed to be an offer. Any exceptions to this statement must be clearly and specifically indicated.

13 INSTRUCTIONS FOR COMPLETING THE RFQ

13.1 Quotations must be submitted in duplicate hard copies [1 original and 1 copy] and must be bound.

13.2 Sign one set of original documents [sign, stamp and date the bottom of each page]. This set will serve as the legal and binding copy. A duplicate set of documents is required. This second set must be a copy of the original signed Quotation.

13.3 Both sets of documents are to be submitted to the address specified in paragraph 4.1 above.

13.4 All returnable documents tabled in the Quotation Form [Section 4] must be returned with your Quotation.

13.5 Unless otherwise expressly stated, all Quotations furnished pursuant to this RFQ shall be deemed to be offers. Any exceptions to this statement must be clearly and specifically indicated.

13.6 Any additional conditions must be embodied in an accompanying letter. Subject only to clause 15 [Alterations made by the Respondent to Bid Prices] of the General Bid Conditions, alterations, additions or deletions must not be made by the Respondent to the actual RFQ documents.

14 COMPLIANCE

The successful Respondent [hereinafter referred to as the Respondent] shall be in full and complete compliance with any and all applicable laws and regulations.

15 Disclaimers

Transnet is not committed to any course of action as a result of its issuance of this RFQ and/or its receipt of a Quotation in response to it. Please note that Transnet reserves the right to:

 modify the RFQ’s goods / service(s) and request Respondents to re-bid on any changes;

 reject any Quotation which does not conform to instructions and specifications which are detailed herein;

 disqualify Quotations submitted after the stated submission deadline;

 not necessarily accept the lowest priced Quotation;

 reject all Quotations, if it so decides;

 place an order in connection with this Quotation at any time after the RFQ’s closing date;

 award only a portion of the proposed goods / service/s which are reflected in the scope of this RFQ;

 split the award of the order/s between more than one Supplier/Service Provider; or

 Make no award at all.

Transnet reserves the right to lower the threshold for Technical by 10% [ten percent] if no Bidders pass the predetermined minimum threshold or if only one bidder passes the threshold. This right will be exercised in Transnet’s sole discretion.

In addition, Transnet reserves the right to exclude any Respondent from the bidding process who has been convicted of a serious breach of law during the preceding 5 [five] years, including but not limited to breaches

of the Competition Act 89 of 1998. Respondents are required to indicate below whether or not they have been found guilty of a serious breach of law during the past 5 [five] years:

I/We __________________________________________________________ do hereby certify that I/we have/have not been found guilty during the preceding 5 [five] years of a serious breach of law, including but not limited to a breach of the Competition Act, 89 of 1998, by a court of law, tribunal or other administrative body. The type of breach that the Respondent is required to disclose excludes relatively minor offences or misdemeanours, e.g. traffic offences.

Where found guilty of such a serious breach, please disclose:

NATURE OF BREACH:__________________________________________________________________________________________________________________________________________________________________________

DATE OF BREACH: ____________________________________________________________________

Furthermore, I/we acknowledge that Transnet SOC Ltd reserves the right to exclude any Respondent from the bidding process, should that person or entity have been found guilty of a serious breach of law, tribunal or regulatory obligation.

16 Evaluation Criteria

Transnet will utilise the following criteria [not necessarily in this order] in choosing a Supplier/Service Provider, if so required:

16.1 STAGE ONE: Test for Administrative Responsiveness

The test for administrative responsiveness will include the following:

The test for substantive responsiveness to this RFQ will include the following:

The test for Administrative & Substantive responsiveness [Stage One] must be passed for a Respondent’s Quotations to progress to Stage Two for further evaluation

16.2 STAGE TWO: Minimum Threshold 70 % for Technical Criteria

The test for the Technical and Functional threshold will include the following:

The following applicable values will be utilised when scoring each criterion mentioned above:

16.3 STAGE THREE: PRICING AND BBB-EE SCORING

Category: Commercial (Scoring Matrix)

The bidders that have successfully progressed through to Phase 2 will be evaluated in accordance with the 80/20 preference point system contemplated in the Preferential Procurement Policy Framework Act (Act 5 of 2011)

Weighted evaluation based on 80/20 preference point system:

Pricing

- Pricing will be calculated using the lowest price quoted as the baseline, thus the lowest price quoted will achieve full marks, while all other quotes will achieve a weighted average mark based on the lowest price.

- Pricing and price basis [firm] - whilst not the sole factor for consideration, competitive pricing and overall level of unconditional discounts1 will be critical

Transnet will utilise the following formula in its evaluation of Price:

PS = 80

Where:

Ps = Score for the Bid under consideration

Pt = Price of Bid under consideration

Pmin = Price of lowest acceptable Bid

- B-BBEE status of company

Preference points will be awarded to a bidder for attaining the B-BBEE status level of contribution in accordance with the table below:

17 Validity Period

Transnet desires a validity period of 90 [ninety] days from the closing date of this RFQ.

This RFQ is valid until 31 December 2014.

18 Banking Details

BANK: ________________________________________________

BRANCH NAME / CODE: __________________________________

ACCOUNT HOLDER: _____________________________________

ACCOUNT NUMBER: _____________________________________

19 Company Registration

Registration number of company / C.C. __________________________________

Registered name of company / C.C. __________________________________

20 Disclosure of Prices Quoted

Respondents must indicate here whether Transnet may disclose their quoted prices and conditions to other Respondents:

21 Returnable Documents

Returnable Documents means all the documents, Sections and Annexures, as listed in the tables below.

a) Respondents are required to submit with their Quotations the mandatory Returnable Documents, as detailed below.

Failure to provide all these Returnable Documents at the Closing Date and time of this RFQ will result in a Respondent’s disqualification. Respondents are therefore urged to ensure that all these Documents are returned with their Quotations.

All Sections, as indicated in the footer of each page, must be signed, stamped and dated by the Respondent. Please confirm submission of these mandatory Returnable Documents by so indicating [Yes or No] in the table below:

b) In addition to the requirements of section (a) above, Respondents are further required to submit with their Quotations the following essential Returnable Documents as detailed below.

Failure to provide all these Returnable Documents may result in a Respondent’s disqualification. Respondents are therefore urged to ensure that all these documents are returned with their Quotations.

All Sections, as indicated in the footer of each page, must be signed, stamped and dated by the Respondent. Please confirm submission of these essential Returnable Documents by so indicating [Yes or No] in the table below:

Failure to provide all the above-referenced returnable documents listed will result in a Respondent’s disqualification. Bidders are therefore urged to ensure that all these documents are returned with their Quotations.

20.1 CONTINUED VALIDITY OF RETURNABLE DOCUMENTS

The successful Respondent will be required to ensure the validity of all returnable documents, including but not limited to its Tax Clearance Certificate and B-BBEE Accreditation Certificate, for the duration of any contract emanating from this RFQ. Should the Respondent be awarded the contract [the Agreement] and fail to present Transnet with such renewals as and when they become due, Transnet shall be entitled, in addition to any other rights and remedies that it may have in terms of the eventual Agreement, to terminate the Agreement forthwith without any liability and without prejudice to any claims which Transnet may have for damages against the Respondent.

Section 2

QUOTATION FORM

I/We_________________________________________________________________________________

Hereby offer to supply the goods/services at the prices quoted in the Price Schedule below, in accordance with the conditions related thereto.

I/We agree to be bound by those terms and conditions in:

 the Standard Terms and Conditions for the Supply of Goods and Services to Transnet [available on request]; and

 any other standard or special conditions mentioned and/or embodied in this Request for Quotation.

I/We accept that unless Transnet should otherwise decide and so inform me/us, this Quotation [and, if any, its covering letter and any subsequent exchange of correspondence], together with Transnet’s acceptance thereof shall constitute a binding contract between Transnet and me/us.

I/We further agree that if, after I/we have been notified of the acceptance of my/our Quotation, I/we fail to deliver the said goods/service/s within the delivery lead-time quoted, Transnet may, without prejudice to any other legal remedy which it may have, cancel the order and recover from me/us any expenses incurred by Transnet in calling for Quotations afresh and/or having to accept any less favourable offer.

1 REFERENCES

Please indicate below the company names and contact details of existing customers whom Transnet may contact to seek third party evaluations of your current service levels:

SCOPE OF WORK

The scope of work to be carried out under this contract shall consist of the following:

1. INTRODUCTION

Komatipoort Terminal is located at Nkomazi Municipality in Mpumalanga Province at the following location Latitude S: 2526’ 12.52”, Longitude E: 31° 57’ 06.90”

Site infrastructure and operations are summarised as follows:

Main Site Activity: Locomotive movement facility

Main Infrastructure:

• Rail Tank Car Decanting Area

• Spill Containment Area

• Tankage (Diesel Storage Tanks)

• Tank Bund

• Locomotive Refuelling Area

• Fuel Pump House

• Drainage System

• Oil Separator

• Workshop

• Offices

Tankage:

 One 108 m³ above ground (A/G) vertical diesel storage tanks within a bund area.

 Three 38m³ above ground (A/G) horizontal diesel storage tanks within a bund area.

The tenderer is invited to tender for the cleaning of the four diesel storage tanks at Komatipoort terminal, covering the emptying of diesel from Tank 1 into three horizontal tanks Tank 2, 3 and 4 respectively and vice versa to the lowest product draw off point as possible and then remove the tanks bottoms including sludge disposal to a waste disposal site and render the tanks safe for entry and access by the tanks inspector, isolation of the tank, co-ordination, commissioning and handover in complete working order ready for immediate use at Komatipoort Terminal.

ONE TANK WILL BE CLEANED AT A TIME; THEREFORE THREE TANKS SHOULD REMAIN OPERATIONAL.

The following section outlines the scope of work and serves as a guide and is therefore not conclusive, it is expected that respondents who are deemed subject matter experts/ (API approved, etc) and shall include any pertinent data that shall serve as a baseline scope to comprehensively carrying out the tank cleaning as ascribed in API and any other related regulation/s.

2. PROPOSED SCOPE OF WORK

The scope of work to be carried out under this contract shall consist of the co-ordination, design, supply of materials, manufacture, delivery, installation, commissioning, handing over instruction and maintenance documentation of the following:

a) Isolate all piping, drainage system and valves connecting to the tank, if valves are to be closed then they are to be protected against inadvertent operation by the use of pneumatic or electric isolation of the actuator, and in case of manual valves the hand wheels are to be removed, moreover apply acceptable lock out and tag principle to ensure isolation.

b) Tanks should be emptied to the maximum extent by pumping dead stock.

c) After the tank has been emptied all connecting pipe lines shall be emptied and flushed with water.

d) Relief valves discharges into the tank should be blanked off, and a review of the relief system is required to ensure that any blinding off will not impair the integrity of the rest of the site system.

e) All tank mounted electrical equipment (except earthing and bonding cables) is to be isolated at the distribution system. Tank cathodic protection systems shall be disconnected 24 hours before any work is to commence to allow depolarization to take place.

f) Open all manholes to vent the tank 24hrs before start of work.

g) Perform gas testing prior to any work taking place and issue a permit to work; a safety plan shall be required.

h) Manually or mechanically remove sludge inside tank and tank walls, sludge to be disposed in accordance with hazardous disposal requirements and provide waste disposable certificate.

i) The following actions are required to return any tank into its operational mode:

i. The earthing and bonding systems shall be reinstated.

ii. All electrical cables shall be reconnected and tested.

iii. All instruments shall be reinstated and tested.

iv. All debris and equipment shall be removed from inside the tank and the tank roof and bund.

v. The automatic vents shall be in position and set.

vi. The roof drains and sumps shall be clear of debris.

vii. Any relief valves shall be tested (350 KPA) and reinstalled.

viii. All apertures shall have new gaskets and shall be bolted closed.

ix. All pipework shall be re-connected.

x. The cathodic protection systems shall be re-connected.

3. REQUIREMENTS

3.1 All work to be done in accordance with API 653

3.2 Transnet Safety compliance and full PPE

3.3 Ensure conformance to safety requirements for the confined space entry as stated by OHSAct

3.4 Method statement and Risk Assessment must be submitted with the quotation

3.5 Contractor to provide a gas tester complete with a valid calibration certificate during tank cleaning process to monitor the level of hydrocarbons

4. OUTCOMES:

4.1 Desludge Diesel bulk storage tank

4.2 High Pressure clean inside of the tank

4.3 All contaminated run off water must be pumped away

4.4 Provide certification for dispose waste

4.5 Ensure all debris are cleaned

Price Schedule

I/We quote as follows for the goods required, on a “delivered nominated destination” basis, excluding VAT:

Delivery Lead-Time from date of purchase order: ____________________ [days/weeks]

Notes to Pricing:

a) All Prices must be quoted in South African Rand, exclusive of VAT

b) To facilitate like-for-like comparison bidders must submit pricing strictly in accordance with this price schedule and not utilise a different format. Deviation from this pricing schedule could result in a bid being disqualified.

c) Please note that should you have offered a discounted price(s), Transnet will only consider such price discount(s) in the final evaluation stage if offered on an unconditional basis.

Section 3

STANDARD TERMS AND CONDITIONS FOR THE SUPPLY OF GOODS OR SERVICES TO TRANSNET

A Supplier/Service Provider shall be obliged to adhere to the Standard Terms and Conditions for the Supply of Goods and Services to Transnet as expressed hereunder. Should the Respondent find any condition(s) unacceptable, it should indicate which condition(s) is/are unacceptable and offer an alternative(s). A Quotation submitted by a Respondent will be subjected to review and acceptance or rejection of its proposed contractual terms and conditions by Transnet’s Legal Counsel, prior to consideration for an award of business.

1 SOLE AGREEMENT

Unless otherwise agreed in writing, these terms [Terms and each Term] and Transnet’s purchase order(s) [Order or Orders] represent the only conditions upon which Transnet SOC Ltd [Transnet] procures goods [the Goods] or services [the Services] specified in the Order from the person to whom the Order is addressed [the Supplier/Service Provider]. Transnet does not accept any other conditions which the Supplier/Service Provider may specify, unless otherwise agreed to by Transnet in writing. In the event of any inconsistency between these Terms and any Order, these Terms shall take precedence.

2 CONFORMITY WITH ORDER

Goods/Services shall conform strictly with the Order. The Supplier/Service Provider shall not vary the quantities specified and/or the specification, if any, stipulated in the Order, without the prior written consent of Transnet. The Supplier/Service Provider warrants that the Goods/Services shall be fit for their purpose and of satisfactory quality.

3 DELIVERY AND TITLE

3.1 The delivery dates and addresses are those in the Order. Time shall be of the essence in respect of the Supplier’s/Service Provider’s obligations under the Order.

3.2 The Supplier/Service Provider will not be excused for delay in delivery or performance except due to circumstances outside its control and then only subject to the Supplier/Service Provider having notified Transnet in writing on becoming aware of such circumstances. Transnet may terminate an Order, in whole or in part, without incurring any liability to the Supplier/Service Provider if such a delay becomes, in Transnet’s absolute opinion, significant.

3.3 If on delivery, the Goods/Services do not conform to the Order, Transnet may reject the Goods/Services and the Supplier/Service Provider shall promptly rectify any defects or in Transnet’s opinion, supply appropriate replacement Goods/Services at the Supplier’s/Service Provider’s expense within the specified delivery times, without any liability due by Transnet.

4 PRICE AND PAYMENT

4.1 Prices specified in an Order cannot be increased. Payment for the Goods/Services shall be made by Transnet against an original undisputed invoice(s) [a Tax Invoice], supporting documentation and month-end statement from the Supplier/Service Provider. Tax Invoices plus supporting documentation shall be posted to the address shown in the Order.

4.2 Payment of the Supplier’s/Service Provider’s valid Tax Invoice(s) will be made by Transnet in the South African currency and on the terms stated in the Order, the standard payment terms being 30 [thirty] days from date of receipt by Transnet of a month-end statement, unless otherwise agreed to in writing. Transnet shall arrange for payment of such Tax Invoices and any pre-authorised additional expenses incurred, provided that the authorised expenses are supported by acceptable documentary proof of expenditure incurred [where this is available]. Any amounts due in terms of these Terms shall be paid to the Supplier/Service Provider, taking into account any deduction or set-off and bank charges.

5 PROPRIETARY RIGHTS LIABILITY

If any allegations should be made or any claim asserted against Transnet that ownership of, or any act or omission by Transnet in relation to Goods/Services or any written material provided to Transnet relating to any Goods/Services or pursuant to an Order being a violation or infringement of any third party’s contractual, industrial, commercial or intellectual property rights including but not limited to any patent, registered design, design right, trade mark, copyright or service mark on any application thereof, the Supplier/Service Provider hereby indemnifies Transnet against and hold it harmless from any and all losses, liabilities, costs, claims, damages and expenses [including any legal fees] arising directly or indirectly from such allegation or claim provided that this indemnity shall not apply where the allegation or claim arises solely as a result of the Supplier/Service Provider following a design or process originated and furnished by Transnet. The Supplier/Service Provider shall either

a) procure for Transnet the right to continue using the infringing Goods; or

b) modify or replace the Goods/Services so that they become non-infringing,

provided that in both cases the Goods/Services shall continue to meet Transnet’s requirements and any specifications stipulated in the Order. Should neither option be possible, the Supplier/Service Provider may remove, with Transnet’s prior written consent, such Goods/Services and will pay to Transnet a sum equivalent to the purchase price. If Transnet refuses to give such consent, the Supplier/Service Provider shall have no liability in respect of any continued use of the infringing Goods/Services after Supplier’s/Service Provider’s prior written request to remove the same.

6 PROPRIETARY INFORMATION

All information which Transnet has divulged or may divulge to the Supplier/Service Provider and any information relating to Transnet’s business which may have come into the Supplier’s/Service Provider’s possession whilst carrying out an Order, and the existence of the Order, shall be treated by the Supplier/Service Provider as confidential information and shall not, without Transnet’s prior written consent, be disclosed to any third party, or be used or copied for any purposes other than to perform the Order. This clause does not apply to information which is public knowledge or available from other sources other than by breach of this Term. Upon request by Transnet, the Supplier/Service Provider shall return all materials issued pursuant to the Order and, pending this, shall protect Transnet’s rights in any such materials. Such confidential information shall at all material times be the property of Transnet.

7 PUBLICITY

The Supplier/Service Provider shall not name Transnet or use its trademarks, service marks [whether registered or not] or Goods in connection with any publicity without Transnet’s prior written consent.

8 TERMINATION OF ORDER

8.1 Transnet may cancel an Order in whole or in part at any time upon at least 7 [seven] days’ written notice to the Supplier/Service Provider, or when there is a change in control of the Supplier/Service Provider or the Supplier/Service Provider commits any serious breach or any repeated or continued material breach of its obligations under these Terms and/or Order or shall have been guilty of conduct tending to bring itself into disrepute, on written notice to the Supplier/Service Provider when such work on the Order shall stop.

8.2 Transnet shall pay the Supplier/Service Provider a fair and reasonable price for justified work in progress, where such price reflects only those costs not otherwise recoverable by the Supplier/Service Provider, at the time of termination, and the Supplier/Service Provider shall give Transnet full assistance to check the extent of such work in progress. Payment of such price shall be in full and final satisfaction of any claims arising out of such termination and upon such payment the Supplier/Service Provider shall deliver to Transnet all work, including any materials, completed or in progress. The sum payable to the Supplier/Service Provider under this clause will not in any event exceed the total amount that would have been payable to the Supplier/Service Provider had the Order not been terminated.

8.3 In the event of termination the Supplier/Service Provider must submit all claims within 2 [two] months of termination after which time claims will only be met in what Transnet considers exceptional circumstances.

8.4 If the Goods or Services are not provided in accordance with an Order, the Order shall be deemed terminated and the Supplier/Service Provider shall compensate Transnet for any costs incurred in obtaining substitute Goods or any damage caused due to the failure or delay in the delivery.

9 ACCESS

The Supplier/Service Provider shall be liable for the acts, omissions and defaults of its personnel or agents who, for the purposes of the Order, shall be treated as if they are the Supplier’s/Service Provider’s employees. The Supplier/Service Provider shall ensure that any such personnel or agents, whilst on Transnet’s premises, shall comply with Transnet’s health and safety, security and system security rules and procedures as and where required.

10 WARRANTY

The Supplier/Service Provider warrants that it is competent to supply the Goods/Services in accordance with these Terms to the reasonable satisfaction of Transnet and that all Goods/Services delivered under the Order: (a) conform and comply in all relevant legislation, standards, directives and orders related to [inter alia] the Goods/Services in force at the time of delivery, and to any specifications referred to in the Order; (b) will not cause any deterioration in the functionality of any Transnet equipment; and (c) do not infringe any third party rights of any kind. The Supplier/Service Provider hereby indemnifies Transnet against all losses, liabilities, costs, claims, damages, expenses and awards of any kinds incurred or made against Transnet in connection with any breach of this warranty.

11 INSOLVENCY

If the Supplier/Service Provider shall have a receiver, manager, administrator, liquidator or like person appointed over all or any part of its assets or if the Supplier/Service Provider compounds with its creditors or passes a resolution for the writing up or administration of the Supplier/Service Provider, Transnet is at liberty

to terminate the Order or Orders forthwith, or at its option, to seek performance by any such appointed person.

12 ASSIGNMENT

The Supplier/Service Provider shall not assign its obligations under an Order without Transnet’s prior written consent, which consent shall not be unreasonably withheld or delayed.

13 NOTICES

Notices under these Terms shall be delivered by hand to the relevant addresses of the parties in the Order or may be served by facsimile or by email, in which event notice shall be deemed served on acknowledgement of receipt by the recipient.

14 LAW

Orders shall be governed by and interpreted in accordance with South African law and any disputes arising herein shall be subject to South African arbitration under the rules of the Arbitration Foundation of South Africa, which rules are deemed incorporated by reference in this clause. The reference to arbitration shall not prevent Transnet referring the matter to any South African courts, having jurisdiction, to which the Supplier/Service Provider hereby irrevocably submits but without prejudice to Transnet’s right to take proceedings against the Supplier/Service Provider in other jurisdictions and/or obtaining interim relief on an urgent basis from a court of competent jurisdiction pending the decision in other courts or from instituting in any court of competent jurisdiction any proceedings for an interdict or any other injunctive relief. If the Supplier/Service Provider does not have a registered office in the South Africa it will at all times maintain an agent for service of process in South Africa and shall give Transnet the name and address of such agent as such may be amended, in writing, from time to time.

15 GENERAL

Completion or termination of an Order shall be without prejudice to any Term herein which by its nature would be deemed to continue after completion or termination. Headings are included herein for convenience only. If any Term herein be held illegal or unenforceable, the validity or enforceability of the remaining Terms shall not be affected. No failure or delay by Transnet to enforce any rights under these Terms will operate as a waiver thereof by Transnet. All rights and remedies available to either party under these Terms shall be in addition to, not to the exclusion of, rights otherwise available at law.

16 COUNTERPARTS

These Terms and conditions may be signed in any number of counterparts, all of which taken together shall constitute one and the same instrument. Any party may enter into this agreement by signing any such counterpart.

By signing this RFQ document, the Respondent is deemed to acknowledge that he/she has made himself/herself thoroughly familiar with all the conditions governing this RFQ, including those contained in any printed form stated to form part hereof and Transnet SOC Ltd will recognise no claim for relief based on an allegation that the Respondent overlooked any such condition or failed to properly take it into account for the purpose of calculating quoted prices or otherwise.

SIGNED at ___________________________ on this _____ day of __________________________ 20___

SIGNATURE OF RESPONDENT’S AUTHORISED REPRESENTATIVE

NAME: ______________________________________________

DESIGNATION: _______________________________________

REGISTERED NAME OF COMPANY: ________________________________________________________

PHYSICAL ADDRESS:

______________________________________________________________________________

_____________________________________________________________________________

Respondent’s contact person: [Please complete]

Transnet urges its clients, suppliers and the general public

to report any fraud or corruption to

TIP-OFFS ANONYMOUS: 0800 003 056

Section 4

VENDOR APPLICATION FORM

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 6: SIGNING POWER – RESOLUTION OF BOARD OF DIRECTORS

NAME OF ENTITY: _______________________________________________________________

It was resolved at a meeting of the Board of Directors held on ______________________________ that

FULL NAME(S) CAPACITY SIGNATURE

________________________ ______________________________ ____________________

________________________ ______________________________ ____________________

________________________ ______________________________ ____________________

_______________________ ______________________________ ____________________

in his/her capacity as indicated above is/are hereby authorised to enter into, sign, execute and complete any documents relating to Quotations and/or Agreements for the supply of Services.

FULL NAME ________________________ __________________________

SIGNATURE CHAIRMAN

FULL NAME _________________________ __________________________

SIGNATURE SECRETARY

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 7: CERTIFICATE OF ACQUAINTANCE WITH RFQ DOCUMENTS

NAME OF ENTITY: _____________________________________________________________________________________

I/We ___________________________________________________________________________________ do hereby certify that I/we acquainted myself/ourselves with all the documentation comprising this RFQ and all conditions contained therein, as laid down by Transnet SOC Ltd for the carrying out of the proposed supply/service/works for which I/we submitted my/our response.

I/We furthermore agree that Transnet SOC Ltd shall recognise no claim from me/us for relief based on an allegation that I/we overlooked any RFQ/contract condition or failed to take it into account for the purpose of calculating my/our offered prices or otherwise.

SIGNED at ___________________________ on this _____ day of ___________________2014

_____________________________ ___________________________

SIGNATURE OF WITNESS SIGNATURE OF RESPONDENT

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 8: GENERAL BID CONDITIONS - SERVICES

Refer General Bid Conditions attached hereto

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 9: STANDARD TERMS AND CONDITIONS OF CONTRACT

FOR THE PROVISION OF SERVICES TO TRANSNET

Refer Form ST&C attached hereto.

Respondents should note the obligations as set out in

clause 20 [Terms and Conditions of Bid]

of the General Bid Conditions [RFQ Section 3] which reads as follows:

“The Service Provider shall adhere to the Standard Terms and Conditions of Contract as set out in Form ST&C – Services, a copy of which is attached hereto. Should the Respondent find any conditions unacceptable, it should indicate which conditions are unacceptable and offer alternatives. Any such submission shall be subject to review by Transnet’s Legal Counsel who shall determine whether the proposed alternative(s) are acceptable or otherwise, as the case may be.”

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 10: RFQ DECLARATION FORM

NAME OF ENTITY: _______________________________________________________

We ___________________________________________________________ do hereby certify that:

1. Transnet has supplied and we have received appropriate responses to any/all questions [as applicable] which were submitted by ourselves for bid clarification purposes;

2. we have received all information we deemed necessary for the completion of this Request for Quotation [RFQ];

3. at no stage have we received additional information relating to the subject matter of this RFQ from Transnet sources, other than information formally received from the designated Transnet contact(s) as nominated in the RFQ documents;

4. we are satisfied, insofar as our entity is concerned, that the processes and procedures adopted by Transnet in issuing this RFQ and the requirements requested from bidders in responding to this RFQ have been conducted in a fair and transparent manner; and

5. furthermore, we declare that a family, business and/or social relationship exists / does not exist [delete as applicable] between an owner / member / director / partner / shareholder of our entity and an employee or board member of the Transnet Group.

If such a relationship exists, Respondent is to complete the following section:

FULL NAME OF OWNER/MEMBER/DIRECTOR/

PARTNER/SHAREHOLDER: ADDRESS:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Indicate nature of relationship with Transnet: _____________________________________________________________________________________

________________________________________________________________________________

[Failure to furnish complete and accurate information in this regard may lead to the disqualification of a response and may preclude a Respondent from doing future business with Transnet]

6. We declare, to the extent that we are aware or become aware of any relationship between ourselves and Transnet [other than any existing and appropriate business relationship with Transnet] which could unfairly advantage our entity in the forthcoming adjudication process, we shall notify Transnet immediately in writing of such circumstances.

7. We accept that any dispute pertaining to this bid will be resolved through the Ombudsman process and will be subject to the Terms of Reference of the Ombudsman. The Ombudsman process must first be exhausted before judicial review of a decision is sought. [Refer “Important Notice to Respondents” overleaf].

8. We further accept that Transnet reserves the right to reverse an award of business or decision based on the recommendations of the Ombudsman without having to follow a formal court process to have such award or decision set aside.

SIGNED at ___________________________ on this _____ day of ______________________ 2014

IMPORTANT NOTICE TO RESPONDENTS

 Transnet has appointed a Procurement Ombudsman to investigate any material complaint in respect of RFQs exceeding R5, 000,000.00 [five million S.A. Rand] in value. Should a Respondent have any material concern regarding an RFQ process which meets this value threshold, a complaint may be lodged with Transnet’s Procurement Ombudsman for further investigation.

 It is incumbent on the Respondent to familiarise himself/herself with the Terms of Reference for the Transnet Procurement Ombudsman, details of which are available for review at Transnet’s website www.transnet.net .

 An official complaint form may be downloaded from this website and submitted, together with any supporting documentation, within the prescribed period, to procurement.ombud@transnet.net

 For transactions below the R5,000,000.00 [five million S.A. Rand] threshold, a complaint may be lodged with the Chief Procurement Officer of the relevant Transnet Operating Division.

 All Respondents should note that a complaint must be made in good faith. If a complaint is made in bad faith, Transnet reserves the right to place such a bidder on its List of Excluded Bidders.

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 11: BREACH OF LAW

NAME OF ENTITY: ______________________________________________________________________

I/We____________________________________________________________________________________

do hereby certify that I/we have/have not been found guilty during the preceding 5 [five] years of a serious breach of law, including but not limited to a breach of the Competition Act, 89 of 1998, by a court of law, tribunal or other administrative body. The type of breach that the Respondent is required to disclose excludes relatively minor offences or misdemeanours, e.g. traffic offences.

Where found guilty of such a serious breach, please disclose:

NATURE OF BREACH: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

DATE OF BREACH: ____________________________________________________________________

Furthermore, I/we acknowledge that Transnet SOC Ltd reserves the right to exclude any Respondent from the bidding process, should that person or entity have been found guilty of a serious breach of law, tribunal or regulatory obligation.

SIGNED at _____________________ on this _____ day of _______________________20__

_____________________________ ___________________________

SIGNATURE OF WITNESS SIGNATURE OF RESPONDENT

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 12: BID CLARIFICATION REQUEST FORM

RFQ deadline for questions / bid clarifications: Before 12:00 3 days prior to closing date

TO: Transnet SOC Ltd

ATTENTION: The Secretary, Transnet Acquisition Council [TAC]

EMAIL prudence.nkabinde@transnet.net

DATE: _____________________________________________

FROM: _____________________________________________

_____________________________________________

RFQ Bid Clarification No [to be inserted by Transnet] ……..

REQUEST FOR BID CLARIFICATION

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

RFQ FOR THE CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL

Section 13: SERVICE PROVIDER CODE OF CONDUCT

Transnet aims to achieve the best value for money when buying or selling Services and obtaining services. This however must be done in an open and fair manner that supports and drives a competitive economy. Underpinning our process are several acts and policies that any Service Provider dealing with Transnet must understand and support. These are:

The Transnet Procurement Procedures Manual [PPM];

Section 217 of the Constitution - the five pillars of Public PSCM [Procurement and Supply Chain Management]: fair, equitable, transparent, competitive and cost effective;

The Public Finance Management Act [PFMA];

The Broad Based Black Economic Empowerment Act [B-BBEE]; and

The Prevention and Combating of Corrupt Activities Act.

This Code of Conduct has been included in this RFQ to formally appraise prospective Transnet Service Providers of Transnet’s expectations regarding behaviour and conduct of its Service Providers.

Prohibition of Bribes, Kickbacks, Unlawful Payments, and Other Corrupt Practices

Transnet is in the process of transforming itself into a self-sustaining State Owned Company [SOC], actively competing in the logistics industry. Our aim is to become a world class, profitable, logistics organisation. As such, our transformation is focused on adopting a performance culture and to adopt behaviours that will enable this transformation.

1. Transnet will not participate in corrupt practices and therefore expects its Service Providers to act in a similar manner.

Transnet and its employees will follow the laws of this country and keep accurate business records that reflect actual transactions with and payments to our Service Providers.

Employees must not accept or request money or anything of value, directly or indirectly, to:

- illegally influence their judgement or conduct or to ensure the desired outcome of a sourcing activity;

- win or retain business or to influence any act or decision of any decision stakeholders involved in sourcing decisions; or

- gain an improper advantage.

There may be times when a Service Provider is confronted with fraudulent or corrupt behaviour of Transnet employees. We expect our Service Providers to use our “Tip-offs Anonymous” Hot line to report these acts [0800 003 056].

2. Transnet is firmly committed to the ideas of free and competitive enterprise.

Service Providers are expected to comply with all applicable laws and regulations regarding fair competition and antitrust.

Transnet does not engage with non-value adding agents or representatives solely for the purpose of increasing B-BBEE spend [fronting].

3. Transnet’s relationship with Service Providers requires us to clearly define requirements, exchange information and share mutual benefits.

Generally, Service Providers have their own business standards and regulations. Although Transnet cannot control the actions of our Service Providers, we will not tolerate any illegal activities. These include, but are not limited to:

- misrepresentation of their product [e.g. origin of manufacture, specifications, intellectual property rights];

- collusion;

- failure to disclose accurate information required during the sourcing activity [e.g. ownership, financial situation, B-BBEE status];

- corrupt activities listed above; and

- harassment, intimidation or other aggressive actions towards Transnet employees.

Service Providers must be evaluated and approved before any materials, components, products or services are purchased from them. Rigorous due diligence is conducted and the Service Provider is expected to participate in an honest and straight forward manner.

Service Providers must record and report facts accurately, honestly and objectively. Financial records must be accurate in all material respects.

Conflicts of Interest

A conflict of interest arises when personal interests or activities influence [or appear to influence] the ability to act in the best interests of Transnet.

Doing business with family members

Having a financial interest in another company in our industry

RFQ FOR CLEANING OF DIESEL STORAGE TANKS AT KOMATIPOORT DIESEL STORAGE AND DISPENSING TERMINAL Section 14: CERTIFICATE OF ATTENDANCE OF SITE MEETING / RFQ BRIEFING

It is hereby certified that –

2. ___________________________________

3. ___________________________________

Representative(s) of _______________________________________ [name of entity]

attended the site meeting / RFQ briefing in respect of the proposed Services to be supplied in terms of this RFQ on _________________________2014

____________________________ ______________________________

TRANSNET’S REPRESENTATIVE RESPONDENT’S REPRESENTATIVE

DATE _______________________ DATE _________________________

SECTION 15: NON-DISCLOSURE AGREEMENT [NDA]

Complete and sign the Non-Disclosure Agreement attached hereto

Section 17: E4B – MINIMUM COMMUNAL HEALTH REQUIREMENTS

MINIMUM COMMUNAL HEALTH REQUIREMENTS IN AREAS OUTSIDE THE JURISDICTION OF A LOCAL AUTHORITY: TEMPORARY FACILITIES FOR CONTRACTOR'S PERSONNEL

1. CAMPS