MANUFACTURE AND SUPPLY OF
FOUR SETS OF GRADE 2 TITANIUM
CONDENSER TUBES AT TUTUKA
POWER STATION
ENQUIRY NUMBER : MPPPSC001048
DATE: 02 November 2016
2016/04/12 2
Rules of the meeting
All attendees to fill in Attendance Register
All Cell phones to be on silent during the meeting
Questions
OUTLINE
Commercial Requirements
SD&L Requirements
Project Management
Technical Requirements
Planning Requirements
Finance Requirements
Quality Requirements
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Indication of interest
T1.1 Acknowledgement Forms should be submitted after Clarification meeting
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COMMERCIAL – Evaluation Process
All tenders are evaluated and scored in accordance with Eskom’s Procurement Process and PPPFA (90/10).
• A five (5) stage evaluation process will be conducted after Basic compliance.
• Stage 1 Functionality evaluation
• Stage 2: Local Production and Content
• Stage 3: Financial Analysis
• Stage 4: :Price and Preference Point System
• Stage 5: Objective Criteria
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COMMERCIAL – Submission Dates and Address
Enquiry closes at 10h00 on 24 November 2016
Tender Box located at–
ESKOM HOLDINGS SOC LIMITED
THE TENDER OFFICE
10 SMUTS AVENUE
EMALAHLENI/WITBANK
1035
COMMERCIAL – Documents
Documents should be marked clearly, as follows:
ESKOM HOLDINGS SOC LIMITED
GROUP TECHNOLOGY AND COMMERCIAL DIVISION
CONFIDENTIAL TENDER NO: MPPPSC001048
THE EMPLOYER WILL RESPOND TO THE REQUEST FOR CLARIFICATION RECEIVED UP TO 5 (FIVE) WORKING DAYS BEFORE THE DEADLINE FOR TENDER SUBMISSION
LATE TENDERS WILL NOT BE ACCEPTED
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COMMERCIAL – Tender Envelope System
The tender should be packaged as follows:
• In three sections Technical (Engineering, SHEQ and Planning), Financial and Commercial.
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COMMERCIAL – Tender Communication
Contact Persons:
Simon Ndlakuse – Senior Advisor-Buying
Contact Details:
Tel: +2717 749 9265
Fax Numbers: +27 86 660 0423
Email Address: [email protected]
More information and any clarifications will be posted on this link:
http://mp2mas17.eskom.co.za/tenderbulletin/search.asp
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COMMERCIAL – SD & L
Objectives:
• Supporting SMME - the objective is to encourage anchor companies to avail subcontracting opportunities to small black owned companies
• Localization – the objective is to create a platform for South African based suppliers to be develop into national and international suppliers.
• Supplier Development – the objective is to ensure that Eskom’s procurement spend is utilized to develop South African based Suppliers.
• Skills Development – increment of Skills base in South Africa is viewed as a catalyst for Job creation and poverty reduction
COMMERCIAL – SD & L
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• Local content Local content to South Africa 0% (not a designated sector)
Local Content to SA Target% Proposal
0%
COMMERCIAL – SD & L
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Note : Eskom will apply the standard for Developing Skills through infrastructure Contracts published by Construction Industry Development Board on 23 August 2013 (Board Notice 180 of 2013, Government Gazette 36760) (“ the CIDB skills development Standard”) 100% Compliance
Qualifying candidates shall be currently unemployed and be recruited within local to site ( Lekwa Municipality).
Tenderers are expected to comply 100% on Skills Development.
Skills Type
Package A
Eskom Target
(Local to Site)
Proposed Number
(Local to Site)
Artisan N1- N6 10
Artisan N4- N6 10
Total 20
COMMERCIAL – SD & L
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Corporate Social Investment
CSI proposal target 2% of the contract value
SD & L: B-BBEE Evaluation Scorecard
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B-BBEE Level of
Contribution
Number of
points
allocated 90/10
Number of points scored
90/10
1 10
2 9
3 8
4 5
5 4
6 3
7 2
8 1
Non Compliant 0
Contract Type / Duration
• The contract will be awarded based on the New Engineering Contract (NEC3) supply Contract.
• Starting date : 26 April 2017
• Completion : 31 December 2019
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Contract : Clauses
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• X1 - Price Adjustment for inflation;
• X2 - Changes in the Law;
• X3 - Multiple currency;
• X4 - Parent Company Guarantee;
• X7 – Delay Damages;
• Z – Additional conditions of contract
Contracting methodology
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The contracting methodology is as follows:
• One supplier will be contracted for all 4 (four) units.
• Only manufacture and supply for first two (2) units .
• Notice for manufacturing of the remaining 2 (two) units will be given by Eskom “as and when” required based on the availability of the units
PRESENTATION OUTLINE
1. Overview
2. Works Information
3. Mandatory Technical Tender Returnables
4. QualitativeTechnical Evaluation Criteria
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OVERVIEW
• Tutuka Power Station has six units producing electricity of 609MW per unit. Each unit has one main condenser that is equipped with admiralty brass tubes in the condensing zones and CuNi tubes in the air-extraction zones.
• Over the decades since installation, these tubes have deteriorated to the point where replacement is necessary. It is therefore required that the condensers be re-tubed with Grade 2 titanium tubes.
• The Works Information or scope of work can be found on NEC document C3 SC3 “Purchaser Goods Information Part 3”.
• The Technical Tender Returnables are clearly stated in Eskom Specification 240-76648332 Rev 2 and also on the Engineering score sheet.
• Technical Tender Evaluation Criteria to be used can be found on Engineering score sheet document.
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WORKS INFORMATION
• The scope covers the manufacturing and supply (ex works) of Grade 2 Titanium Condenser Tubes for 4 units/sets.
• These tubes are to be manufactured as per Eskom Specification 240-76648332 Rev 2.
• The Supplier is to identify the third party inspector or authorised inspection authority (AIA) and submit an offer for the associated costs to the Purchaser as part of the tender application.
• AIA is defined as per SANS 10227 or accredited notified body in terms of PED (Pressure Equipment Directive).
• The Supplier, after approval from the Purchaser, shall appoint the third party inspector at the time of contract award.
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02/06/2014 31
• Note that the specification 240–76648332, Rev 2, states that “a third party/independent inspection authority will be appointed by Eskom”. This point will no longer apply as the appointment will be done by the Supplier. The rest of the specification will still fully apply.
• The specification catered for both seamless and welded / cold worked tubes. Both type of tubes will be evaluated the same.
• It indicates all the tests to be done during manufacturing process. These include tube 3.2 material certificates, manufacturing inspections, the tube markings, packing and sampling of tubes.
• Data books together with tube samples are to be sent to Eskom with the final product. All data book information is to be signed off by the third party or independent inspection authority.
WORKS INFORMATION
• One set of condenser tubes consists of the following:
o 6 550 tubes; length (L) - 10 004 mm; Outer Diameter (OD) - 19 mm; wall thickness (T) - 0.711 mm.
o 6 550 tubes; L - 10 939 mm; OD - 19 mm; T - 0.711 mm.
o 16 150 tubes; L - 10 004 mm; OD - 19 mm; T - 0.508 mm.
o 17 350 tubes; L -10 939 mm; OD - 19 mm; T - 0.508 mm.
• Tolerances:
o Tube OD: (+0.00 – 0.204) mm.
o Tube wall thickness: ± 10% (as per ASTM B338).
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WORKS INFORMATION
WORKS INFORMATION
• The following information is required within one week of the contract being awarded:
o Quantity of crates to be delivered,
o Dimensions of the crates ( length, width and height),
o Net mass per crate (kg),
o Gross mass per crate (kg).
• This is required for shipping arrangements. Note that the dimensions of the crates will be such that they are suitable for containerisation.
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Mandatory Technical Tender Returnables
Mandatory Technical Criteria Description Tender Returnable
1. In cases where the tube mill/manufacturer and
Contractor are different entities, a formal original
stamped and signed letter from the tube
mill/manufacturer shall confirm/state the relationship
between the tube mill/manufacturer and the
Contractor specific to this particular supply. The
letter shall contain contact details for the tube
mill/manufacturer.
Letter from
manufacturer.
2. The Manufacturer shall have a Quality Management
System that meets or exceeds the requirements of
ISO 9001. Relevant and applicable Certification and
the Quality Management Policy to be submitted.
Quality management
policy and certification.
3. The country of origin of the feed material shall be
clearly indicated.
Statement of country of
origin.
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Mandatory Technical Tender Returnables
Mandatory Technical Criteria Description Tender
Returnable
4.
The name of the tube manufacturing facility, and its web address,
e-mail address, contact telephone number and physical address
shall be clearly stated.
Manufacturer’s
details.
5.
Verifiable/auditable evidence shall be provided showing that 1
500 000 metres condenser tubes and/or heat exchanger tubing
with wall thickness of ≤ 1.5 mm has been manufactured at a
single manufacturing facility in the last 5 years. The
verifiable/auditable evidence shall include power plant or
applicable industrial heat exchanger applications (e.g.
petrochemical) “End User” references and length and number of
tubes supplied.
Evidence of
tube
manufacturing
experience.
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Mandatory Technical Tender Returnables
Mandatory Technical Criteria Description Tender
Returnable
6.
If Eskom has previously not received and successfully evaluated
samples from the same tube mill/manufacturer then the
prospective tube mill/manufacturer shall submit at least one
Independent Inspection Authority approved test report/certificate
(for the supply of condenser or heat exchanger tubing) which
documents the results of the chemical analysis, metallurgical,
mechanical, dimensional and NDT testing in accordance with
ASTM B338. IF PREVIOUSLY EVALUATED BY ESKOM,
SUBMIT A LETTER CONFIRMING THIS.
Test report/
certificate.
7.
A typical example of a QCP or ITP which meets the minimum
requirements of ASTM B338, for the manufacturing of condenser
tubes, shall be provided. All manufacturing processes are to be
included with acceptance criteria. The required documentation
shall describe the heat and tube identification or traceability
details and number of tests and retests.
Quality control
plan or
inspection and
test plan.
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Mandatory Technical Tender Returnables
Mandatory Technical Criteria Description Tender
Returnable
8.
Exclusions or qualifications to this Specification and/or ASTM
B338 are to be clearly noted. If no exclusions or qualifications
are submitted at the time of tender, the requirements as
prescribed in this Specification and/or ASTM B338 shall apply.
IF NO EXCLUSIONS, SUBMIT A LETTER CONFIRMING
FULL ADHERENCE.
List of
exclusions /
qualifications
/ deviations.
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Qualitative Technical Tender Returnables
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Qualitative Technical Criteria Description Tender
Returnable
Criteria
%
Weight
1.
If Eskom has previously not received and successfully
evaluated samples from the same tube
mill/manufacturer then the prospective tube
mill/manufacturer shall submit at least one
Independent Inspection Authority approved test
report/certificate (for the supply of condenser or heat
exchanger tubing) which documents the results of the
chemical analysis, metallurgical, mechanical,
dimensional and Non Destructive Testing (NDT)
testing in accordance with ASTM B338. IF
PREVIOUSLY EVALUATED BY ESKOM, SUBMIT A
LETTER CONFIRMING THIS.
Test report/
certificate.
30
Qualitative Technical Tender Returnables
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Qualitative Technical Criteria Description Tender
Returnable
Criteria
% Weight
2.
Provision of a typical example of Quality Control
Plan or Inspection and Test Plan and to include a
method statement which meets the minimum
requirements of ASTM B338, for the manufacturing
of condenser tubes. All manufacturing processes
together with “In-house” Quality Control activities to
be included with acceptance criteria. The required
documentation shall describe the heat and tube
identification or traceability details and number of
tests and retests.
Returnable:
Quality
control plan /
inspection
and test plan.
20
3.
Exclusions or qualifications to this Specification
and/or ASTM B338. IF NO EXCLUSIONS, SUBMIT
A LETTER CONFIRMING FULL ADHERENCE.
Returnable:
List of
exclusions /
qualifications
/ deviations.
30
Qualitative Technical Tender Returnables
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Qualitative Technical Criteria
Description
Tender
Returnable
Criteria % Weight
4.
Provision of an organogram, specific
to this particular supply, detailing all
entities/commercial parties and the
positions and individuals responsible
for technical expertise and logistic
support. Curriculum vitae of these
key personnel shall to be included
with the submission.
Organogram 20
Qualitative Technical Tender Returnables
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Comments
• All mandatory evaluation criteria must be met for further consideration.
• A minimum of 70 % is required on the total for the qualitative technical evaluation criteria in order for the tender to be considered to be technically acceptable.
• It is in the tenderer’s best interests to present the technical returnables in such a manner that they are in sequence from 1.1 to 1.8 and 2.1 to 2.4, and clearly labelled.
PLANNING REQUIREMENTS
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Programming Constraints
Primavera Planning tool to be used for computerised planning
Updates to the manufacturing programme reporting on a 2 weekly basis.
The Contractor must supply a level 2 programme for tender purposes indicating any milestone dates to be included in the contract data as well as milestones for the 4 units separately indicating the material purchase and manufacturing dates for each unit.
Once contract is awarded then a level 3 programme must be supplied with procurement and manufacturing of tubes for each unit with hold points if required for overseas inspections and quality control
FINANCE - REQUIREMENTS
TENDER RETURNABLES
Audited Financial Statements of the tenderer for the previous two financial years, Tenderers must note that in the case of a joint venture or special purpose vehicle (SPV) especially formed for this tender, audited financial statements for each participant in the JV / SPV is required. Start-up enterprises formed within the last 12 months are not required to send in statements, but if successful with their tender will be required to send statements for the first year when once available.
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Eskom Contract Quality Requirements
All suppliers shall adhere to the requirements as set out in the
Eskom Contract Quality Requirements Standard QM58 (240-
105658000) and align with ISO9001 requirements.
Quality Documents to be submitted with the Tender
• SECTION A : Quality Management System Requirements ISO 9001:2008 and
Evidence of QMS in operation.
• The supplier shall submit a copy of a valid ISO 9001:2008 certificate (that
is relevant to the scope of the tender).
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Eskom Contract Quality Requirements (cont.)
• Copy of an internal management system audit report (the audit report must include NCR, corrective & preventive report).
• Copy of an external (3rd party) management system audit report (the audit report must include NCR, corrective & preventive report)
• Copy of appointment letter & CV/ resume of a Quality Representative for the project.
• Project structure including Quality department reporting. (Incl QC’s)
• Copy of procedure for control of suppliers & subcontractors.
• Copies (minimum) of Customer satisfaction surveys. Reports must not be more than two years old.
• Copy of a Quality Plan (incl ITP's) on previous project < 2yrs.
• Historical Information (list) of similar work performed < 2yrs
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Eskom Contract Quality Requirements (cont.)
• SECTION B : Contract Quality Plan Requirements
• Draft Contract Quality Plan Requirements (Ref QM-58 and 240-109253698).
• Draft Quality Control Plan Requirements (Ref QM-58 Annexure I or 240-51544462).
• SECTION D : User defined additional Requirements & miscellaneous
• Form A (Tender & Contract Quality Requirements for QM 58 and Quality Requirements For ISO 9001 Standard) completed and signed.
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