Introduction

- Name

- Bonga Ndaba

- Designation

- Strategic Sourcing & Contracts Manager

- Division

- Procurement

- Location

- Westville, Durban

My Story Today…

- Engen Procurement

- Overview of Structure

- Who’s who

- Commodity Management

- Engen’s Tender Procedures

- Monetary Values

- Governance

- Engen’s Tender Evaluation Methodology

- Evaluation Criteria

- Where “potential” Opportunities exist

Overview of Structure

Enablement Manager

Governance & Strategic

Projects Manager

Corporate Services Manager

Sourcing & Contracts Manager

Sourcing & Contracts Manager

Sourcing & Contracts Manager

Sourcing & Contracts Manager Projects

Chief Procurement

Officer

Overview of Portfolio

Strategic Sourcing & Contracts Manager

(Zulfa Bardien)

Sourcing

Special Projects

Retail Forecourts

Road Transport

Building Contractors

Construction Engineers

Consultants

Strategic Sourcing & Contracts Manager

(Riaz Kajee)

Sourcing

General/Special Projects

Piping fabrication and installation

Manufacture and Repairs to Pressure Vessels

Super Ultra High Pressure Cleaning

Strategic Sourcing & Contracts Manager

(Bonga Ndaba)

Sourcing

Special Projects

Lubricants

Packaging

Chemicals

Additives

Oil & Gas

Corporate Services Manager

(Christy Woolfuth)

Sourcing

Operational Procurement

Everything from Stationery to Civil Works

Usually associated with Routine Procurement

Procedure

Purchases

Less than R10K

Buyer

Utilise CPC

and/or

Petty Cash

Formal Quotation

is not Mandatory

Purchases Between

R10K – R30K

Buyer

1 x Quote

Recorded

Only Level 4

BBBEE vendors

invited

Purchases Between

30K – 250K

Senior Buyer

3 Written Quotes

Only Level 4

BBBEE

Preference to BO

& BWO

HSEQ

Purchases Between

R250k - R2m

Senior Buyer

3 Written Quotes

Only Level 4

BBBEE

Formal Eval

Formal Approval

Preference to BO

& BWO

HSEQ

Procedure

Purchases Above

R2m

Specialist – Strategic Sourcing Specialist

Formal RFP Process 3 Written Quotes

Only Level 4 and above BBBEE vendors

Preference to BO & BWO

Must be Technically Pre-Qualified

Must be HSEQ Approved

Must be Presented to Tender Board

Formally Approved by GM / CEO

Procedure

- Tenders Above R2m (Very Formal)

- Adjudicated by formal CFST

- Technical SME’s, Legal, BBBEE, HSEQ, Procurement, Audit

- Evaluation Criteria formally agreed and signed off by CFST

- Presented to Tender Board

- Approved by GM and/or CEO

- Non Conformance

- Waiver Procedure which has to be approved by the person with the

relevant LOA

- Also requires relevant Tender Board Approval

Procedure

- As a “Rule of Thumb”…

- Only vendors that are level 4 and above are invited for Tender

- Criteria Includes

- HSEQ

- BBBEE

- Commercial

- Technical (Sometimes no Technical Evaluation)

- Awards

- Not given to the lowest tenderer, but

- To the vendor who achieves the best combined score

Evaluation Criteria

- HSEQ

- …is a MANDATORY priority for Engen, and as a fundamental value,

no other priority may override safety

- Standard Criteria in all tenders

- Depending on Nature and Complexity of Work

- Low Risk = 6 point Questionnaire to be completed

- Plumbing, Tiling, Shelving, Painting, HVAC, Refrigeration, etc

- High Risk = 12 point Questionnaire to be completed

- Pump and Tank, Transport, Building Contractors, Civil

Contractors, etc

Evaluation Criteria

- BBBEE

- Not Negotiable (only level 4 and above vendors invited)

- Preferential Payment Terms

- 7days, 14 days, etc

- +51% Black Owned = 2 points

- +30% Black Women Owned = 3 points

- 5 additional points

- Enterprise Development

- COMMERCIAL

- Price

- Financial Viability (Optional)

- Adherence to T&C’s (Optional)

Evaluation Criteria

- TECHNICAL

- Technically Pre-approved

- Then NO Technical Evaluation

- Mining Engineering Vendors, Depot Engineering Vendors,

Refinery Engineering Vendors, Electrical Engineers

- Non Technically Approved

- There has to be a NEED

- Have to meet Engen’s BBBEE requirements. All NEW vendors

must be +51% BO and +30% BWO

- Have to complete Engen’s HSEQ questionnaire relevant to the

nature of the work

- Have to demonstrate experience, skills, qualification – Not

necessarily Oil and Gas but even Retail experience

Procedure

- TECHNICAL CONT…

- Non Technically Approved Cont…

- Have necessary Equipment

- A team consisting of HSEQ and SME’s physically go out and

assess the company

- Once Technically Approved – vendor gets invited to partake in

tenders

- AWARD

- Is based on the best combined score

- SAP DATABASE

- Only once a tender is won, does the vendor get added to the SAP

Database

Opportunities

- OPPORTUNITIES

- Retail Forecourts

- Pump and Tank

- Forecourt Maintenance

- HVAC / Refrigeration

- 3rd Party Transporters

- Transportation of Fuel & Lubes (no agets/brokers)

- Professional Services

- Quantity Surveyors

- Professional Consulting Services

Points to Note

- Engen gives priority to Black Owned and Black Women Owned

companies in terms of our BBBEE and Procurement Policy – know the Codes

- Call when you know and have experience in your CORE BUSINESS.

- No opportunities available immediately because everything goes via

tender on expiry of contract.

- Database available from the relevant Manager for potential suppliers and

services providers.

- High focus on HSE and Quality in the Petroleum Industry.

- Each province has a BBBEE and Business Development Executive. KZN

contact is Phatheka Mkhiva on 031 460 4911 (Engen Refinery Nr.).

- Enterprise Development handled by Phatheka and Procurement Dept.

- Westville Office is 031 250 2911 & Head Office number is 021 403 4911

Questions