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Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference OCTOBER 2014

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REQUEST FOR PROPOSAL

ENTERPRISE RESOURCE PLANNING (ERP)

BID NUMBER:

CLOSING DATE FOR SUBMISSION:

TIME:


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Table of Contents 1 Introduction .................................................................................................................................... 5

1.1 Background ............................................................................................................................. 5

1.2 Purpose ................................................................................................................................... 5

2 Scope of Services for the ERP Solution ........................................................................................... 5

2.1.1 Financial Management module ...................................................................................... 5

2.1.2 Human Resource Management module ......................................................................... 6

2.1.3 Procurement Management module ............................................................................... 6

2.1.4 Professional Services ....................................................................................................... 6

3 Submission of Tenders and Closing Date ........................................................................................ 6

3.1 Tender submission place and closing date ............................................................................. 6

3.2 Tender Submission Instructions (2 Envelope System) ............................................................ 7

3.2.1 ENVELOPE ONE – Technical Proposal ............................................................................. 7

3.2.2 ENVELOPE TWO – Price Proposal .................................................................................... 7

4 Preparation of Responses ............................................................................................................... 8

5 Evaluation Criteria ........................................................................................................................... 8

5.1 Technical Evaluation Criteria .................................................................................................. 8

5.1.1 Part 1 –Evaluation of Mandatory Documents Criteria .................................................... 8

5.1.2 Part 2- Functional Criteria ............................................................................................... 9

5.1.3 Part 3 System Specifications Criteria ............................................................................ 10

5.1.4 Part 4 Proof of Concept (POC) Presentation and Risk Assessment .............................. 11

5.2 Price Evaluation Criteria ........................................................................................................ 11

6 Briefing Session ............................................................................................................................. 12

7 Proposal Response Format ........................................................................................................... 12

8 Technical Proposal Response Format ........................................................................................... 13

8.1 Standard Bidding Documents & Forms (Section 1 of the Technical Proposal) ..................... 13

8.1.1 Invitation to Bid Form – SBD1 ....................................................................................... 13

8.1.2 Declaration of Interest Form – SBD4 ............................................................................ 13

8.1.3 Declaration of Bidder’s past Supply Chain Management Practices – SBD 8 ................. 13

8.1.4 Certificate of Independent Bid Determination - SBD9 .................................................. 14

8.2 Executive Summary (Section 2 of Technical Proposal) ......................................................... 14


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8.3 Company Background (Section 3 of the Technical Proposal) ............................................... 14

8.4 Track Record (Section 4 of the Technical Proposal) .............................................................. 14

8.5 Application Software (Section 5 of the Technical Proposal) ................................................. 14

8.6 Technical and Hardware Requirements (Section 6 of the Technical Proposal) .................... 15

8.6.1 Vendor Hosted Option (Section 6 of the Technical Proposal) ...................................... 15

8.7 Proposed Implementation Plan (Section 7 of the Technical Proposal) ................................ 16

8.7.1 General Implementation Approach (Section 7.1 of the Technical Proposal) ............... 17

8.7.2 Project Management Approach (Section 7.2 of the Technical Proposal) ..................... 17

8.7.3 Hardware, Software and Storage Design and Installation Consulting (Section 7.3 of the

Technical Proposal) ....................................................................................................................... 18

8.7.4 Data Conversion and Migration Plan (Section 7.4 of the Technical Proposal) ............. 18

8.7.5 Report Development (Section 7.5 of the Technical Proposal) ...................................... 18

8.7.6 Implementation and Training (Section 7.6 of the Technical Proposal) ........................ 18

8.7.7 Change Management Approach (Section 7.7 of the Technical Report) ....................... 19

8.7.8 System Documentation, manuals and Testing (Section 7.8 of the Technical Proposal)

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8.7.9 Process Re-engineering Assistance (Section 7.9 of the Technical Proposal) ................ 20

8.7.10 Knowledge Transfer (Section 7.10 of the Technical Proposal) ..................................... 20

8.7.11 Other activities proposed by the Bidder and the Microsoft Project Plan (Section 7.11

of the Technical Proposal) ............................................................................................................ 20

8.8 Ongoing Support Services (Section 8 of the Technical Proposal) ......................................... 21

8.9 Personnel Plan, Experience and Qualifications (Section 9 of the Technical Proposal) ......... 21

8.10 Functional System Requirements (Section 10 of the Technical Proposal) ........................... 21

8.11 License and Maintenance Agreements (Section 11 of the Technical Proposal) ................... 23

8.12 Exceptions and Deviations (Section 12 of the Technical Proposal) ...................................... 23

8.13 Electronic Copy of the Technical Proposal (Section 13 of the Technical Proposal) .............. 23

9 Cost Proposal Response Format ................................................................................................... 24

9.1 Electronic Copy of the Price Schedule (Section 1 of the Price Proposal) .............................. 24

9.2 Standard Bidding Documents ............................................................................................... 25

9.2.1 Software Pricing Schedule – SBD 3.1 ............................................................................ 25

9.2.2 Professional Services Pricing Schedule – SBD 3.3 ......................................................... 25

9.2.3 Preference Points Claim Form SBD 6.1 ......................................................................... 25

10 Special Conditions of Contract .................................................................................................. 25


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10.1 Scope of Agreement.............................................................................................................. 25

10.2 Professional Services Warranty ............................................................................................ 26

10.3 Pricing .................................................................................................................................... 27

10.4 Confidentiality ....................................................................................................................... 27

10.5 Title and Confidentiality ........................................................................................................ 27

10.6 Subcontractors ...................................................................................................................... 28

10.7 Approval of Sub-Contractor, Project Team and Project Manager Designation .................... 28

10.8 Assignments .......................................................................................................................... 28

10.9 Vendor as Independent Contractor ...................................................................................... 29

10.10 Warranty ........................................................................................................................... 29

10.11 Final Acceptance of the System ........................................................................................ 30

10.12 Standard Forms and Contracts ......................................................................................... 30

10.13 Advertisement ................................................................................................................... 30

10.14 Password Security ............................................................................................................. 31

10.15 Non-Performance Procedures .......................................................................................... 31

10.16 Replication of Software ..................................................................................................... 31

10.17 Project Schedule and Acceptance ..................................................................................... 31

10.18 Acceptance Testing ........................................................................................................... 31

10.19 Payment Terms ................................................................................................................. 33

10.20 Travel Expense Reimbursement ....................................................................................... 34

10.21 Conflict of Interest ............................................................................................................ 34

10.22 Intellectual Property ......................................................................................................... 34

11 ANNEXURE A – General Conditions of Contract ....................................................................... 35

12 ANNEXURE B – Bid Response Document – Technical Proposal ................................................ 51

13 ANNEXURE C – Bid Response Document – Price Proposal ....................................................... 52

14 ANNEXURE D – ERP Software and Implementation Services – Specifications.xlsx .................. 53

15 ANNEXURE E – ERP Software and Implementation Services– Price Schedule.xlsx................... 54


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1 Introduction

1.1 Background

The Export Credit Insurance Corporation of South Africa (SOC) LTD (ECIC)1 is a

self-sustained state-owned entity listed under Schedule 3B of the Public Finance

Management Act. The mandate of the ECIC is to facilitate and encourage South

African export trade, by underwriting export credit loans and investments outside

the country, in order to enable South African contractors to win capital goods and

services contracts in countries outside South Africa. The ECIC is a registered short

term insurer under the Short Term Insurance Act and is subject to supervision and

regulation by the Financial Services Board.

The ECIC seeks to modernise and reduce the cost of its operations by automating

its business processes through a Business Process Management System (BPMS)

and upgrading its current financial system to an Enterprise Resource Planning

(ERP) solution. The ECIC expects that this IT Modernisation Project will result in

increased efficiency across the organisation.

1.2 Purpose

ECIC requests the services an ERP vendor to implement an ERP solution for the

ECIC covering its core components of financial management, Human resource

management and Procurement management.

The purpose of this document is to set out the terms of reference for an ERP

solution and seeks to establish to the greatest possible extent complete clarity

regarding the requirements for both parties to the agreement resulting from this

request for proposal.

2 Scope of Services for the ERP Solution

The scope of the services required for the ERP solution includes:

2.1.1 Financial Management module

Sourcing and installation of the Financial Management ERP module with the

following functionalities:

Accounts payable

Accounts receivable

Planning and budgeting

General Ledger

Bank reconciliation

1 Further information on the ECIC can be found at www.ecic.co.za

http://www.ecic.co.za/


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Cash management

Fixed assets

Grant or Project Accounting

2.1.2 Human Resource Management module

Sourcing and installation of the Human Resource Management ERP module with

the following functionalities:

Personnel management

Leave management

Payroll management

Organisational management

Performance management

Training management

2.1.3 Procurement Management module

Sourcing and installation of the Procurement Management ERP software modules

with the following functionalities:

Purchasing

Contract management

2.1.4 Professional Services

Provision of professional services as follows:

Definition of hardware specification and advise on installations

Project management

Data conversion and migration

Report development

Implementation and training services

Change management

System documentation and Testing

Knowledge transfer to ECIC staff

Ongoing support and maintenance of the ERP solution for a minimum period

of 5 years

3 Submission of Tenders and Closing Date

3.1 Tender submission place and closing date

Tender proposal must be received by ECIC no later than 17H00 on 7 November

2014.

Bids must be submitted by hand to:

Head: Procurement and Office Management

Export Credit Insurance Corporation of South Africa SOC LTD,


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Block C7 & C8 Eco Origins Office Park,

349 Witch Hazel Avenue,

Highveld Ext 79,

Centurion

Bidders that choose to submit their bid documents before the closing date and time

may do so during working hours only (08:30-17:00).

It is the Bidder’s responsibility to ensure that their bid submissions reach the ECIC

before the bid closing times as no late submissions will be accepted.

Telegraphic, telephonic, telex, facsimile, e-mail and late tenders will not be

accepted. Bidders will be advised of the outcome by letter, facsimile or e-mail.

3.2 Tender Submission Instructions (2 Envelope System)

Bidders must submit their proposal and all supporting documentation in a sealed

envelope, clearly marked as follows:

3.2.1 ENVELOPE ONE – Technical Proposal

Bidders must submit one (1) signed, completed, original of the Technical Proposal,

seven (7) copies of the Technical Proposal together with eight (8) electronic

copies on a compact disk (CD) of the Technical Proposal. The envelope must

contain all information and documents relating to the tender. (Refer to list of

returnable documents). No pricing information must be included in Envelope

One.

3.2.2 ENVELOPE TWO – Price Proposal

Bidders must submit one (1) signed, completed, original Price Proposal (pricing

schedule/schedule of rates as applicable) , seven (7) copies of the Price Proposal

together with eight (8) electronic copies on a compact disk (CD) of the Price

Proposal.

Bidders are required to place the sealed ENVELOPE ONE together with the sealed

ENVELOPE TWO into one sealed envelope or container. The sealed envelope or

container must be marked for the attention of the Head: Procurement and Office

Management together with the following information:

BID REFERENCE NO: ________

ERP TECHNICAL and PRICE PROPOSALS

BIDDER’S NAME AND ADDRESS


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The Price Proposal will only be opened and evaluated when the Bidder has successfully

met the minimum Technical Evaluation Criteria of the Technical Proposal as set out in

paragraph 5 below.

Bidders shall organise their response document and insert a table of contents as

specifically specified in paragraph 7 below and bind (ring bind or similar method) the

proposal documents. Bidders shall verify page numbers of their proposal, as ECIC will not

accept any liability with regard to any disputes arising from pages that are missing or

duplicated in the aforementioned documents.

Bidders are required to complete and sign all the Bid Response Documents (refer to the

Bid Response Document Checklist section 1.5 of the Annexure B:) and initial all pages,

drawings and brochures which are included in the reply as ECIC will not accept any liability

with regard to any disputes arising from pages that are missing or duplicated in the

aforementioned documents.

4 Preparation of Responses

Bidders shall bear all costs associated with preparation and submission of the proposal.

ECIC shall not be responsible or liable for any cost incurred during the bidding process.

5 Evaluation Criteria

This Tender will be evaluated using a two stage process. The First stage will comprise the

Technical Evaluation which will be based on the Technical Proposal whilst the second

Stage will comprise the Price Evaluation which will be based on the Price Proposal. It is

the Bidder’s responsibility to ensure that it has responded to both evaluation criteria.

Failure to meet the evaluation criteria may result in the Bidder being disqualified from

being appointed. Bidders must ensure that they have included all supporting

documentation, especially the documentation that may be required to support the

response to the evaluation criteria.

5.1 Technical Evaluation Criteria

The Technical Evaluation Criteria which will be based on the Technical Proposal and

will comprise four (4) parts.

5.1.1 Part 1 –Evaluation of Mandatory Documents Criteria

All Technical Proposals will be evaluated against the Mandatory Documents Criteria

Bidders must COMPLY WITH ALL the Mandatory Documents Criteria in order to

qualify for further evaluation.


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Proposals not meeting these requirements will be disqualified. Bidders should

acknowledge acceptance of these terms and complete the checklist in their RFP

response.

Mandatory Documents Criteria

Completed reference form for at least one ERP software installation for a

company of similar size and complexity (Refer section 4 of the Technical

Response).

Response to the RFP is submitted by the due date and time.

An authorized company officer completes and signs all the Standard Bidding

Documents for the Technical Proposal (section 1 of the Technical

Proposal) and the Price Proposal (section 2 of the Price Proposal).

The Bidder has completed all forms and questionnaires in the Bid Response

Documents and complied with all instructions of the RFP. Where the Bidder

has not complied with the instructions or has exceptions, such non-

compliance or exception is noted in section 1.5 Bid Response Document

Checklist of the Technical Proposal.

5.1.2 Part 2- Functional Criteria

Bidders complying with ALL the Mandatory Evaluation Criteria will be evaluated

against the Functional Criteria as set out below. Bidders must score 60 points or

more out of a total 100 points allocated for Functional Criteria. Bidders that score

less than 60 points will not be evaluated further. Bidders who obtain the required

threshold of 60 points or more will qualify for further evaluation.

The scoring criteria for purposes of awarding points for the functional criteria will be

as follows:

Criteria

No Functionality Criteria

Points

Allocated

1. Company Background

(Section 3 of Technical Proposal) 10

2. Track Record


3. Application Software


4. Technical and hardware Requirements


5. Proposed Implementation Plan


6. Ongoing Support Services



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Criteria

No Functionality Criteria

Points

Allocated

7.

Personnel Plan, Experience and

Qualifications

(Section 9 of Technical Proposal)

10

Total points allocated for Functional Criteria 100 Points

5.1.3 Part 3 System Specifications Criteria

Bidders qualifying in Part 2 Functional Criteria will be evaluated against the

System Specification Criteria as set out below. Bidders must score 80 points or

more out of a total 100 points allocated for the System Specifications Criteria.

Bidders that score less than 80 points will not be evaluated further. Bidders who

obtain the required threshold points of 80 points or more will qualify for further

evaluation

The scoring criteria for purposes of awarding points for the ERP Specifications

Criteria will be as follows:

Criteria

No.

System Specification Criteria Points

Allocated

1 Financial management 45

1.1 Accounts payable 5

1.2 Accounts receivable 5

1.3 Planning and budgeting 5

1.4 General Ledger 10

1.5 Bank reconciliation 5

1.6 Cash management 5

1,7 Fixed assets 5

1.8 Grant and Project Accounting 5

2 Procurement or Supply Chain Management 10

2.1 Purchasing 5

2.2 Contract management 5

3 Human Resources Management 35

3.1 Personnel management 10

3.2 Leave management 5 3.3 Payroll management 5

3.4 Organisational management 5

3.5 Performance Management 5

3.6 Training management 5

4 General and technical 10

100


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5.1.4 Part 4 Proof of Concept (POC) Presentation and Risk Assessment

Proof of Concept (POC)

Bidders qualifying in part 3 “System Specification Criteria” will be requested to

conduct a POC Presentation. The POC Presentation will be used to determine how

the solution complies with the system requirements. Bidders must score 80 points

or more out of a total 100 points allocated for the Proof of Concept. Bidders that

score less than 80 points will not be evaluated further. Bidders who obtain the

required threshold points of 80 points or more and pass the Risk Assessment

review will qualify for Price Evaluation Criteria. The evaluation criteria for Proof of

Concept will be as follows:

Criteria

No.

Proof of Concept Criteria Points

Allocated

1 Functionality of Software 40

3 Quality of reports produced by the system 30

4 Ease of Use 30

100

Bidders will be expected to select and prepare a POC presentation for ONE (1)

functionally for EACH of the Financial Management, Human Resource and

Procurement modules.

Risk Assessment

In addition to Proof of Concept presentation, all bids that meet the minimum

qualifying score for Part 3: “System Specifications Criteria” will undergo a risk

assessment based on the following framework:

Any aspects that emanate from the Bidders individual responses

Any information received from past references

Acceptance of the Special Conditions of Contract as set out in paragraph

10 below and General Conditions of Contract as set out in Annexure A.

ECIC may disqualify bidders based on the outcome of the risk assessment and

Proof of Concept.

5.2 Price Evaluation Criteria

Bidders that successfully achieve minimum points for Technical Evaluation Criteria2

will qualify for evaluation of their Price Proposal. The Price Proposal will only be

opened and evaluated once the Technical Evaluation is completed. Bidder’s Price

2 Meeting all the requirements for Part 1, 2, 3 and 4 of the Technical Evaluation Criteria


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proposals and BEE certificates will be ranked according to price and preference points

from the highest number of points to the lowest. The Bidder with the highest number of

points will be recommended for the award of the tender.

The 90/10 evaluation criteria will be followed for the purpose of this RFP. The B-BBEE

points will be awarded as per the rating certificate, the points for Joint ventures (JV) or

consortiums will be awarded based on the certificate of the JV or the consortium.

6 Briefing Session

Briefing session for this tender is compulsory: Bidders must ensure that they attend the

briefing session and sign the attendance register as non-attendance or failure to sign the

attendance register will automatically disqualify a bidder from submitting a proposal for this

Tender.

7 Proposal Response Format

To facilitate the analysis of responses to this RFP, the Bidder is required to prepare their

proposals in accordance with the instructions outlined in this section. Bidders must

respond in full to all RFP sections and follow the RFP format (section numbering,

etc.) in their response. Failure to follow these instructions may result in

disqualification.

For each question asked in the RFP, the proposer shall provide in their response,

the question asked and their answer using the section numbering of the RFP.

Proposals shall be prepared to satisfy the requirements of the RFP. EMPHASIS SHOULD

BE CONCENTRATED ON ACCURACY, COMPLETENESS, AND CLARITY OF

CONTENT. All parts, pages, figures, and tables should be numbered and labelled clearly.

The proposal should be organized as follows:

ENVELOPE ONE - TECHNICAL PROPOSAL

Section

Number Title

1. Standard Bidding Documents & Forms

2. Executive Summary

3. Company Background

4. Track Record - Vendor Evaluation Form

5. Application Software

6. Technical and Hardware Requirements

7. Proposed Implementation Plan

8. Ongoing Support Services


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ENVELOPE ONE - TECHNICAL PROPOSAL

Section

Number Title

9. Personnel Plan, Experience and Qualifications

10. Functional System Requirements – (complete excel spreadsheet:

ERP Software and Implementation Services – Specifications.xlsx)

11. License structure

12. Exceptions and Deviations

13. Electronic Copy of technical Proposal

14. Document Checklist

ENVELOPE TWO - PRICE PROPOSAL

Section

Number

Title

1. Standard Bidding Documents

2. Electronic Copy of Price Proposal

3. Document Checklist

Instructions relative to each part of the response to this RFP are defined in paragraph 8

for Technical Proposal and paragraph 9 for Price Proposal below.

8 Technical Proposal Response Format

8.1 Standard Bidding Documents & Forms (Section 1 of the Technical Proposal)

8.1.1 Invitation to Bid Form – SBD1

Bidders should complete and sign this form. If the Bidder uses the services of

subcontractors or partners for the performance of services required, such

subcontractors/partners will be required to also sign the SDB1 form if their share of the

fee amounts to more than 40% of the total Bid price.

8.1.2 Declaration of Interest Form – SBD4

Bidders should complete and sign this form.

8.1.3 Declaration of Bidder’s past Supply Chain Management Practices – SBD 8



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8.1.4 Certificate of Independent Bid Determination - SBD9


8.2 Executive Summary (Section 2 of Technical Proposal)

This part of the response to the RFP should be limited to a brief narrative & not to exceed

two (2) pages describing the proposed solution. The summary should contain as little

technical jargon as possible and should be oriented toward non-technical personnel. The

executive summary should not include cost quotations.

8.3 Company Background (Section 3 of the Technical Proposal)

In addition to providing responses to the following items, the Bidder must complete section

3 of the Technical Proposal in the Bid Response Document. Bidders must provide

information about their company so that the ECIC can evaluate the Bidder’s stability and

ability to support the commitments set forth in response to the RFP. Information that

Bidders should provide in this section are as follows:

1. The company's background including a brief description (e.g., past history, present

status, future plans, company size, etc.) and organization charts.

2. Financial information for the past TWO (2) completed financial years that includes

income statements, balance sheets, and statement of cash flows.

3. If the Vendor is proposing to use subcontractors on this project, please provide

background information on each subcontractor, Vendor relationship with that firm

and the specific services and/or products that the subcontractor will be providing on

the project. A complete list of subcontractors is required. The ECIC has the right to

approve all sub-contractors of the Bidder at any time.

8.4 Track Record (Section 4 of the Technical Proposal)

The Bidder must provide at least three (3) references from clients that are similar in size

and complexity to the ECIC. The format for completing the client references is provided in

section 4 of the Technical Proposal in the Bid Response Document.

8.5 Application Software (Section 5 of the Technical Proposal)

As the ECIC is contemplating an ECIC-hosted versus vendor-hosted solution, aspects of

the proposed solution to be provided should be clearly delineated where they vary

between these two approaches in the sections below. The Bidder is required to provide a

general description of the application program product and how it will meet requirements of

this RFP. This section must address, at a minimum, the following items:

1. Describe your overall proposed technology solution.

2. Describe the product direction for the company, including time frames.

3. Describe unique aspects of the Bidder’s solution in the marketplace.


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4. Describe components of the solution that are industry standards versus being

proprietary to the Bidder.

5. For third party products proposed that are integrated with the Bidder’s solution

provide the following for each product:

a. Reason that this product is a third-party product versus being part of the

software Bidder’s solution,

b. Extent to which this third-party product is integrated with the Bidder’s

solution.

Bidders must complete Section 5 of the Technical Proposal in the Bid Response

Document

8.6 Technical and Hardware Requirements (Section 6 of the Technical Proposal)

The Bidder shall provide the information described in this section and complete Section 6 of the technical Proposal in the Bid Response Document. This information will be used in the evaluation process. As the ECIC is contemplating a ECIC-hosted versus vendor-hosted solution, aspects of the proposed solution to be provided should be clearly delineated where they vary between these two approaches for each of the following.

Hardware and Storage Environment a. Describe the proposed computer hardware and storage environment to

support the system. In the event that there are multiple computer systems available, list all options. Indicate which is the preferred hardware platform and why. List the conditions in which the preferred hardware platform would change. A hardware configuration, which takes into account the size of the ECIC, application modules, database size, and anticipated growth, must be provided.

b. What system architecture do you propose? Describe the number and type of: application servers, database server(s), and development and test environments. Describe your proposal’s technical architecture (preferably using a PowerPoint or Visio diagram). This should show components such as the database server, applications server, reporting server, test/training server, firewall(s), web server(s), web browser, minimum workstation requirements, remote access, wireless connectivity, network connectivity to LAN and WAN, etc. Describe any potential use of virtual server technologies (e.g. Microsoft Virtual Server, VMware) and application accelerators and note what Vendors you partner with or recommend and/or support.

c. Describe your proposed information architecture/model (preferably using a PowerPoint or Visio diagram). This should depict data models, taxonomy, data elements, coding structures, a process for standardizing on a particular coding structure, data definitions (employees, Vendors, invoices, etc.)

8.6.1 Vendor Hosted Option (Section 6 of the Technical Proposal)

Note: response to this section is optional. Bidders will not be penalized for lack of response to this section.


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In addition to providing responses to the following items, the Vendor must complete the Section 6.1 of the Technical Proposal in the Bid Response Document.

1. Please describe your vendor hosted model, including: hosting, integration, help desk, provisioning and desktop management capabilities, deployment model (dedicated servers, shared environment, etc.), impact to ECIC’s network and bandwidth, and any partners that may be involved in service delivery.

2. Please describe your proposed service level agreement, including any tiered levels of service, response times, and standard metrics.

3. Please describe your support model, including: cost structure for support calls. 4. Please describe your data center and storage facilities, including: locations,

staffing, physical security, environmental controls (including redundant power), redundancy/load balancing capabilities, data backups and disaster recovery capabilities.

5. Please describe your logical security, including: firewall security, authentication controls, and data encryption capabilities.

6. Please describe your change management, upgrade, and patch management policies & practices?

7. Describe your systems administration/management capabilities including: monitoring of performance measures, intrusion detection, and error resolution.

8. Describe how you will help the ECIC move to a new operation at the end of the contract term or if the contract is terminated, including the process for notifying of termination.

9. Please provide a copy of your most recent SAS70 audit.

8.7 Proposed Implementation Plan (Section 7 of the Technical Proposal)

The Bidder is to provide an implementation plan in narrative format supported by an

activity-level project plan using Microsoft Project that details how the proposed solution is

to be implemented. This implementation plan should include the following elements:

Item

No.

Title Points

Allocated

7.1 General Implementation approach 5

7.2 Project management approach 5

7.3 Definition of hardware specification and advice on installations 5

7.4 Data conversion and migration 5

7.5 Report development 5

7.6 Implementation and training services 3

7.7 Change management 2

7.8 System documentation and Testing 2

7.9 Process re-engineering assistance 2

7.10 Knowledge transfer to ECIC staff 2

7.11 Other activities proposed by the Bidder and the Microsoft Project

plan

4

Total Points allocated to the Proposed Implementation Plan 40


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The Bidder should not be constrained to only include the above items in the Bidder’s

proposal response if the Bidder feels that additional elements may add value to the overall

implementation. The ECIC requests that the Bidder provide their work plan in a Microsoft

Project format as part of the proposal response to be included in the Electronic Copy of the

Technical Proposal.

It is expected that the Bidder will lead the efforts in each of the implementation

areas described below unless stated otherwise. Further details on what is to be

provided as part of the Bidder’s proposed implementation plan are included in the following

subsections.

As the ECIC is contemplating an ECIC-hosted versus vendor-hosted solution, aspects of

the services to be provided should be clearly delineated where they vary between these

two approaches.

8.7.1 General Implementation Approach (Section 7.1 of the Technical Proposal)

Provide a general overview of the implementation approach you plan to use for the ECIC

that includes addressing the following items:

1. Describe how you transition from the sales cycle to the implementation phase of the

project.

2. Describe key differentiators of the approach as it relates to implementing a solution

on time, within budget and with the ability to meet the needs of a diverse client like

ECIC.

3. Describe how you conclude on a preferred implementation phasing of software

modules. What is your recommended approach for this implementation?

4. Describe your approach towards running parallel systems for a period of time.

8.7.2 Project Management Approach (Section 7.2 of the Technical Proposal)

Provide an overall description of the Bidder’s project management approach towards this

type of engagement and projected timing for major phases. Provide a high-level work plan

for achieving the successful deployment of your proposed system. The ECIC expects the

Bidder to provide project management resources leading to the successful deployment of

the system. This project manager will work as a team member with ECIC’s project

management team. This project manager can be an employee of the Bidder or a partner

of the Bidder. In either case, the costs for the project manager should be clearly denoted in

the pricing section of the Price Proposal.


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8.7.3 Hardware, Software and Storage Design and Installation Consulting (Section

7.3 of the Technical Proposal)

The ECIC usually installs the required hardware and communications equipment for

applications. We are open to other proposals to accomplish a successful deployment. The

Bidder is expected to specify, furnish, deliver, install and support all application and

system software that may include pre-installing or equipment staging. What do you

propose for the most effective deployment of hardware, communications and related

equipment?

8.7.4 Data Conversion and Migration Plan (Section 7.4 of the Technical Proposal)

It is anticipated that data conversion will occur when migrating to the new application. The

Bidder is expected to assist the ECIC in the conversion of both electronic and manual data

to the new system. It is expected that the ECIC will be responsible for data extraction from

current systems and data scrubbing and data pre-processing and that the Bidder will be

responsible for overall data conversion coordination, definition of file layouts, and data

import and validation into the new ERP. Please provide pricing for data conversions in the

associated Microsoft Excel pricing spreadsheet to be submitted as part of the electronic

copy of the Price Proposal.

1. Describe your general approach towards data conversion and how you would work

with the ECIC to conclude on what should be converted.

2. Please describe your organization’s recommended approach toward retention of

legacy data.

8.7.5 Report Development (Section 7.5 of the Technical Proposal)

For specific reporting requirements, it is anticipated that the Bidder will take the lead on

developing any reports required as part of the initial deployment of the system. The Bidder

is expected to provide specialized knowledge and information to the ECIC staff during the

development of needed reports, via technical training on the tools used for report

development, database schema and architecture, etc.

Provide information on your reporting approach including:

1. Description of various methods of reporting including Business Intelligence,

2. Methods for the ECIC to identify, specify, and develop required custom reports

during the implementation.

8.7.6 Implementation and Training (Section 7.6 of the Technical Proposal)

The ECIC intends to explore the advantages, disadvantages and related costs of two

implementation training approaches:


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1. End User Training Approach: All end-user and technical training will be performed

on-site through implementation and be performed by the Bidder.

a. End user implementation training will be provided by the Bidder and include

joint participation by the relevant ECIC process owner team lead supporting

the process area in the new software system.

b. Technical Implementation training will include training for ECIC IT staff on the

technologies required to support the new ERP system.

2. Train the Trainer Approach: The Vendor will incorporate a “train the trainer”

approach where only key ECIC team leaders will be trained through implementation

on their modules and then they will train the remainder of the ECIC staff in their

respective areas.

a. There would be roughly 1-2 subject matter experts (SME’s) for each module

including one team leader. This training would be provided at ECIC facility.

b. Training materials supplied by the Bidder would be used by SME’s and team

leaders for training their staff.

c. Web conference or remote online tutorial sessions would be available to

SME and team lead staff to participate in after initial training was completed

in their module.

d. Technical implementation training will include training only key IT staff (2-3)

to support

The Bidder should provide an overall description of both training methods, including the

following:

General timeframes in which both types of training will be conducted

The Bidder must list the nature, level, and amount of training to be provided

for both options in each of the following areas:

Technical training (e.g., programming, operations, etc.)

User training

Other staff (e.g., executive level administrative staff)

8.7.7 Change Management Approach (Section 7.7 of the Technical Report)

The ECIC recognizes that a movement from the current environment to a new solution will

present change management challenges. The Bidder should clearly identify their approach

towards Change Management including any unique approaches, processes, or tools that

will be used.


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8.7.8 System Documentation, manuals and Testing (Section 7.8 of the Technical

Proposal)

The Bidder is expected to provide user manuals and online help for use by the ECIC as

part of the initial training and on-going operational support. Additionally, the ECIC is

expected to provide technical documentation.

1. Describe what documentation (user guide, technical guide, training materials, etc.)

is available on the system proposed and any related costs.

2. Describe what types of documentation you anticipate developing during the course

of the project.

The Bidder should also describe their recommended approach to the following types of testing that are anticipated to be performed on the project and the type of assistance they anticipate providing to the ECIC related to such testing:

1. System testing

2. Integration testing (in relation to the ERP modules)

3. Stress/performance testing

4. User acceptance testing (UAT)

8.7.9 Process Re-engineering Assistance (Section 7.9 of the Technical Proposal)

With the deployment of a new application, the ECIC wishes to take advantage of

capabilities within the software that provide support for operational improvements. Bidders

are requested to describe their approach towards process redesign including discussion

on the optimal time in which to conduct redesign as it relates to implementation of the new

software.

In addition, please describe your organization’s capabilities to assist in a ECIC wide

redesign of the chart of accounts to best leverage the capabilities of the system in order to

meet the ECIC’s overall financial tracking and reporting objectives.

8.7.10 Knowledge Transfer (Section 7.10 of the Technical Proposal)

The Bidder should describe their process for ensuring that a transfer of knowledge occurs

back to ECIC such that staff is capable of supporting and maintaining the application in the

most proficient manner once the implementation engagement is complete.

8.7.11 Other activities proposed by the Bidder and the Microsoft Project Plan

(Section 7.11 of the Technical Proposal)

Details of additional elements that the Bidder feels may add value to the overall

implementation.


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The ECIC requests that the Bidder provide their work plan in a Microsoft Project format as

part of the proposal response to be included in the Electronic Copy of the Technical

Proposal.

8.8 Ongoing Support Services (Section 8 of the Technical Proposal)

Please specify the nature and conditions of any post-implementation support options including:

a. Post-go live support that is included in the proposal response b. Onsite support (e.g. system tuning, application configuration, interface

issues, report development, network optimization, user training and tips to optimize the user experience)

c. Telephone support, d. Help Desk services (If there is a service level agreement for your help desk,

please provide a copy with your RFP response.) e. Toll-free support line f. Users group (i.e. - information about it, where it is held and when. If no, are

you planning one? g. Online knowledge base (i.e. – how it accesses, who updates it, etc.)

8.9 Personnel Plan, Experience and Qualifications (Section 9 of the Technical

Proposal)

The Bidder must detail the type and amount of implementation support to be provided (e.g., number of personnel, level of personnel, time commitment, etc.). Include CVs for all personnel that will be assigned to the project. If the Bidder is using a subcontractor, please include information on subcontracting staff being used and their specific role on the project. Please provide an overall project organizational structure for both ECIC and Bidder’s staff involvement during the project (for both an ECIC-hosted and vendor-hosted solution). Identify the roles and responsibilities of each component of this structure. This includes an appropriate governance structure in which to manage the project.

8.10 Functional System Requirements (Section 10 of the Technical Proposal)

The requirements defined in this section contain the overall general functions of the

requested software solution. The primary objective of the ECIC in implementing a new

system is to provide a more integrated information system environment that will eliminate

the redundant entry of data, provide improved system capabilities, provide improved

access to data, and streamline overall operations.

Attached to this RFP is an Excel spreadsheet (version 2010) “ERP Software and

Implementation Services – Specifications.xls” which details a number of requirements

that must be addressed by the Bidder’s proposal. The Bidder is expected to complete the

excel spread sheet having followed the instructions below.

These requirements set out in the excel spreadsheet are considered mandatory in

implementing the complete solution as defined in section 5 – Application Software.


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Together they define a system that will operate efficiently in the proposed computer

environment while providing a high level of flexibility in meeting the ECIC’s current and

future data needs. Bidders must replace cells A1:G1 in the first excel sheet (General and

Technical) with the Bidder’s Company Name which will be repeated and printed for each

subsequent module.

The Priority column includes one of the following entries to indicate the importance of the

specification/report to ECIC:

“H” – High:

An absolutely necessary feature to be gained from the implementation of a new system.

This would be a feature that ECIC already has and uses in its current software, is available

and/or tracked in a shadow system (i.e., spreadsheet, document, etc.)

“M” – Medium:

This is a feature that the ECIC would like in the new system that is not currently being

tracked or is not existing functionality.

“L” – Low:

This would be a feature that, while of interest, is not applicable at this time or something

that could be a future deployment.

Each Bidder should review the specifications and reports listed in each subsection and

respond as to their availability within the Bidder’s software system. The responses should

be entered under the “Availability” column of each form as follows:

Flag Description

Y Functionality is provided out of the box through the completion of a task associated with a routine configurable area that includes, but is not limited to, user-defined fields, delivered or configurable workflows, alerts or notifications, standard import/export, table driven setups and standard reports with no changes. These configuration areas will not be affected by a future upgrade. The proposed services include implementation and training on this functionality, unless specifically excluded in the scope of work, as part of the deployment of the solution.

R Functionality is provided through reports generated using proposed Reporting Tools.

M Functionality is provided through customization to the application, including creation of a new workflow or development of a custom interface that may have an impact on future upgradability.

T Functionality is provided by proposed third party functionality (i.e., third party is defined as a separate software vendor from the primary software vendor). The pricing of all third party products that provide this functionality MUST be included in the Price Proposal.

F Functionality is provided through a future general availability (GA) release that is scheduled to occur within 1 year of the proposal response.


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Flag Description

N Functionality is not provided

8.11 License and Maintenance Agreements (Section 11 of the Technical Proposal)

Sample license and maintenance agreements must be provided in this part of the

Bidder’s response for all components of the recommended solution (i.e., hardware,

software, operating system, database, etc.). Indicate the basis on how licenses are

determined.

8.12 Exceptions and Deviations (Section 12 of the Technical Proposal)

If the Bidder finds it impossible or impractical to adhere to any portion of these

specifications and all attachments, it shall be so stated in its proposal, with all

deviations grouped together in a separate section entitled, “exceptions/deviations from

proposal requirements.” This section will be all-inclusive and will contain a definition

statement of each and every objection or deviation with adherence to specific RFP

sections. Objections or deviations expressed only in other parts of the proposal, either

directly or by implication, will not be accepted as deviations, and the Bidder in

submitting a proposal, will accept this stipulation without recourse.

8.13 Electronic Copy of the Technical Proposal (Section 13 of the Technical

Proposal)

The Bidder is required to submit a Compact Disk (CD) which must contain:

1. PDF copy of the Technical Proposal

2. The proposed project plan on Microsoft Project as outlined in paragraph

8.7.11 above in relation to section 7.11 of the Technical Proposal

3. A Powerpoint or Visio diagram of the Technical Architecture as required in

paragraph 8.6 above (in relation to section 6 of the Technical Proposal)

4. A Powerpoint or Visio diagram of the Information Architecture as required in

paragraph 8.6 above (in relation to section 6 of the Technical Proposal)

5. The completed copy of the ERP Software and Implementation Services -

Specifications.xlsx file as required in paragraph 8.10 above (in relation to

section 10 of the Technical Proposal)


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9 Cost Proposal Response Format

9.1 Electronic Copy of the Price Schedule (Section 1 of the Price Proposal)

Costs for the Vendor’s proposed solution should be submitted on the proposal pricing schedules provided in the associated Microsoft Excel pricing spreadsheet.

The ECIC will not consider time and materials pricing. Vendors shall provide firm and fixed pricing based on the functionality described. For each item, indicate if the cost is one-time, annual, or other.

The Bidder shall provide price information for each separate component of the proposed solution, as well as the costs of any modifications necessary to fully comply with the RFP specifications.

In the event the product or service is provided at no additional cost, the item should be noted as "no charge" or words to that effect.

In the event the product or service is not being included in the Vendor proposal, the item should be noted as "No Bid".

Bidders shall provide all pricing alternatives in the excel cost sheets.

Vendor shall provide prices in South African Rand.

Vendor shall make clear the rationale and basis of calculation for all fees.

Vendors shall show separate subtotals for the required elements of the proposed solution, and for any layers of optional elements.

In presenting software license fees, the Bidders shall:

o Explain all factors that could affect licensing fees;

o Make clear what type of license is offered for each price (named user, concurrent user, installed copies, processor-based, etc.);

o Indicate which product versions, operating platform(s), and machine classes are included for each price;

o Indicate whether a product is for “server” or “client,” as applicable; and,

o Make clear the extent of any implementation services that are included in the license fees (installation, configuration, training, etc.)

To the extent possible, Bidders shall show any applicable discounts separately from the prices for products and services.

The ECIC prefers that Bidders provide separate prices for each item in the proposed solution. However, the Bidder is also encouraged to present alternatives to itemized costs and discounts, such as bundled pricing, if such pricing would be advantageous to the ECIC.

The ECIC reserves the right to pursue direct purchase of all items and services proposed.


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The ECIC is strongly considering both a vendor-hosted solution through an ASP or SaaS licensing model and a traditional on-premise solution. As such, the ECIC is requesting proposals to include detailed information regarding the Bidder’s hosting and licensing options. If multiple solutions are proposed, please include a separate pricing schedule for each hosting/licensing model.

9.2 Standard Bidding Documents

9.2.1 Software Pricing Schedule – SBD 3.1

The Bidder is required to complete software price schedule with the total bid price

for the software excluding discounts.

9.2.2 Professional Services Pricing Schedule – SBD 3.3

The Bidder is required to complete professional services price schedule with the

total bid price for the software excluding discounts.

9.2.3 Preference Points Claim Form SBD 6.1

This preference form must form part of all bids invited. It contains general

information and serves as a claim form for preference points for Broad-Based Black

Economic Empowerment (B-BBEE) Status Level of Contribution

10 Special Conditions of Contract

The ECIC will enter into a Service Level Agreement which will be fully negotiated after a

Bidder is selected. Responses to the terms outlined herein may be considered in the

selection process and such terms shall be included in the final Agreement. The term

“Agreement” or “this Agreement” shall mean the final contract between the ECIC and the

selected bidder (the “Vendor”), which shall include these terms and conditions and all

exhibits and attachments thereto.

The following Conditions of Contract substantially in the form contained in this paragraph

10 (“Special Conditions of Contract”) as well the General Conditions of Contract

attached as Annexure A, are expected to be agreed to by the Bidders as part of contract

negotiations. Exceptions must be explicitly noted in section 12 Exceptions and

Deviations of the Technical Proposal in the checklist forms provided. Lack of exceptions

listed on the checklist shall be considered acceptance of all of the terms and conditions as

presented in this RFP.

10.1 Scope of Agreement

ECIC agrees to license the Software and receive the services detailed in

Attachment <__>. Service Provider agrees to provide same, subject to the terms

and conditions stated in this Agreement and Attachment <__>. Payment for such


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services shall be per Attachment <__>. The ECIC, without prior and mutual written

agreement, will incur no other service costs. The service costs in Attachment <__>

are inclusive of project management services and include turn-key data conversion,

chart of accounts design assistance, software configuration, formal Acceptance

testing (see clause herein), and initial account balancing. The implementation of the

Software and provision of services shall be per Attachment <__>. ECIC agrees to

provide server and desktop hardware configured per Attachment <__> based on

Vendor’s recommendation.

10.2 Professional Services Warranty

A. The Vendor agrees at all times to maintain an adequate staff of experienced and qualified employees for efficient performance under this Agreement. The Vendor agrees that, at all times, the employees of Vendor furnishing or performing any services shall do so in a proper, workmanlike, and dignified manner.

B. The Vendor agrees that all persons working for or on behalf of Vendor whose duties bring them on ECIC’s premises shall obey the rules and regulations that are established by the ECIC and shall comply with the reasonable directions of the ECIC’s officers. The ECIC may, at any time, require the removal and replacement of any of Vendor's employees for good cause.

C. The Vendor shall be responsible for the acts of its employees and agents while on the ECIC’s premises. Accordingly, Vendor agrees to take all necessary measures to prevent injury and loss to persons or property located on the ECIC’s premises. Vendor shall be responsible for all damages to persons or property caused by Vendor or any of its agents or employees. Vendor shall promptly repair, to the specifications of the ECIC, any damage that it, or its employees or agents, may cause to the premises or equipment of the ECIC. Should the Vendor fail to do so, the ECIC may repair or replace such damaged equipment and the Vendor shall promptly reimburse such cost of repair or replacement incurred by the ECIC.

D. The Vendor agrees that, in the event of an accident of any kind, Vendor will immediately notify the ECIC contact person and thereafter, if requested, furnish a full written report of such accident.

E. The Vendor shall perform the services contemplated in the Agreement without interfering in any way with the activities of the ECIC’s staff or visitors.

F. The Vendor and its employees or agents shall have the right to use only those facilities of the ECIC that are necessary to perform services under this Agreement and shall have no right to access any other facilities of the ECIC. The ECIC shall also extend parking privileges to properly identified members of Vendor's full-time staff on the same basis as they are extended to the ECIC’s staff.

G. The ECIC shall have no responsibility for the loss, theft, mysterious disappearance of, or damage to equipment, tools, materials, supplies, and other personal property of the Vendor or its employees, subcontractors, or equipment-suppliers.


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10.3 Pricing

All prices for the Vendor's services as per Annexure C are for the term of the

Agreement. The ECIC shall pay Vendor for satisfactory performance of the service

specified in this Agreement, the sums in accordance with your reply to our RFP,

and any related addenda.

10.4 Confidentiality

Both parties recognize that their respective employees and agents, in the course of

performance of this Agreement, may be exposed to confidential information and

that disclosure of such information could violate rights to private individuals and

entities. Each party agrees that it will not disclose any confidential information of the

other party and further agrees to take appropriate action to prevent such disclosure

by its employees or agents. The confidentiality covenants contained herein shall

survive the termination or cancellation of this Agreement. This obligation of

confidentiality shall not apply to (a) information that at the time of the disclosure is in

the public domain; (b) information that, after disclosure, becomes part of the public

domain by publication or otherwise, except by breach of this Agreement by a party;

(c) information that a party can establish by reasonable proof was in that party’s

possession at the time of disclosure; (d) information that a party receives from a

third party who has a right to disclose it to that party; or (e) information that is

subject to requests under Promotion of Access to Information Act, 2000 (PAIA).

10.5 Title and Confidentiality

Title and full rights to the Software licensed under this Agreement, including, without

limitation, all intellectual property rights therein and thereto, and any copies ECIC

make, remain with Vendor. It is agreed the Software is the proprietary, confidential,

trade secret property of Vendor, whether or not any portions thereof are or may be

copyrighted, and ECIC shall take all reasonable steps necessary to protect the

confidential nature of the Software, as ECIC would take to protect its own

confidential information. ECIC further agrees that it shall not make any disclosure of

any or all such Software (including methods or concepts utilized therein) to anyone,

except to its directors, employees, agents, auditors, consultants, subcontractors &

any party to whom such disclosure is necessary to the use for which rights are

granted hereunder.

ECIC shall appropriately notify all its directors, employees, agents, auditors and

subcontractors to whom any such disclosure is made that such disclosure is made

in confidence and shall be kept in confidence by them. The obligations imposed by

this section upon ECIC, its employees, agents, and subcontractors, shall survive

and continue after any termination of rights under this Agreement. It shall not be a

breach of this agreement if ECIC is required to disclose or make the Software


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available to a third party or to a court if the Software is required to be disclosed

pursuant to PAIA, or is subpoenaed or otherwise ordered by an administrative

agency or court of competent jurisdiction to be produced.

10.6 Subcontractors

The Vendor may use subcontractors in connection with the work performed under

this Agreement. When using subcontractors, however, the Vendor must obtain

written approval from the ECIC. In using subcontractors, the Vendor agrees to be

responsible for all of their acts and omissions to the same extent as if the

subcontractors were employees of the Vendor.

10.7 Approval of Sub-Contractor, Project Team and Project Manager Designation

The Vendor understands that the successful installation, testing, and operation of

the system that is the subject of this Agreement shall be accomplished by a

cooperative effort. To most effectively manage this process, the Vendor shall

designate a single representative to act as an ex-officio member of the ECIC’s

project management team and who shall have the authority to act on behalf of the

Vendor on all matters pertaining to this Agreement.

The ECIC shall have the right to approve all subcontractors, Account / Project

Manager, and staff assigned to the project by the Vendor. In the event that an

employee of the Vendor is, in the opinion of the ECIC, uncooperative, inept,

incompetent, or otherwise unacceptable, the Vendor agrees to remove such person

from the project. In the event of such a removal, the Vendor shall, within fifteen (15)

days, fill this representative vacancy as described above. Regardless of whom the

Vendor has designated as the representative, the Vendor organization remains the

ultimate responsible party for performing the tasks and responsibilities presented in

this Agreement.

10.8 Assignments

This Agreement or any part thereof shall not be assigned or subcontracted by the

Vendor without the prior written permission of the ECIC; any attempt to do so

without said prior permission shall be void and of no effect.

The Vendor agrees not to assign, transfer, convey, sublet, or otherwise dispose of

the Agreement or any rights, title, or interest created by the Agreement without the

prior consent and written approval of the ECIC.


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10.9 Vendor as Independent Contractor

It is expressly agreed that the Vendor is an independent contractor and not an

agent of ECIC. The Vendor shall not pledge or attempt to pledge the credit of ECIC

or in any other way attempt to bind the ECIC.

The relationship of the Vendor to ECIC shall be that of an independent contractor

and no principal/ agent or employer-employee relationship is created by the

Agreement.

10.10 Warranty

A. Vendor represents and warrants that it has the right to grant the licenses set forth under this Agreement. Vendor further represents and warrants that it has good and marketable title to the Software and any Equipment sold hereunder free and clear from all liens, encumbrances, and claims of infringement of patent, copyright, trade secret or other proprietary rights of third parties. Vendor further represents and warrants that neither the Software in the form delivered by Vendor to ECIC, nor any modifications, enhancements, updates or upgrades thereto, nor the normal use thereof by ECIC, will infringe any patent, copyright, trademark, trade secret or other proprietary right of any third party.

B. In the event that any third party makes a claim or files a lawsuit challenging ECIC’s right to use the Software or Equipment, Vendor shall defend and indemnify ECIC and hold it harmless for any and all losses, liabilities, judgments, damages, awards and costs (including legal fees and expenses) arising out of said claim or lawsuit, and for any monies paid in settlement thereof. In resolving any such infringement claim, Vendor shall, in its reasonable discretion, either procure a license to enable ECIC to continue to use the Software or develop or obtain a non-infringing substitute acceptable to ECIC at Vendor’s cost.

C. Vendor represents and warrants that the Software and related products as described with this Agreement will perform in accordance with all Documentation, Contract Documents, Vendor marketing literature, and any other communications attached to or referenced in this Agreement.

D. Vendor represents and warrants that the Software and related products, including all modifications contracted under the terms of this Agreement, will meet the requirements of ECIC as set forth in the Bid Response Documents - Technical Proposal.

E. ECIC has: (i) presented detailed technical specifications of the particular purpose for which the System is intended and (ii) provided detailed descriptions and criteria of how the System can be defined to accomplish particular purpose. Given this advanced preparation concerning, and documentation about, ECIC’s particular purpose, Vendor, at the time this Agreement is in force, has (1) reason and opportunity to know the particular purpose for which the System is required, and (2) that ECIC is relying on Vendor’s experience and knowledge of the System to identify those components which are most suitable and appropriate. Therefore, Vendor warrants that the System and all products included in this Agreement are


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fit for the purposes for which they are intended as described in the Bid Response Documents - Technical Proposal.

F. Vendor represents and warrants that all products provided under this Agreement are compatible with and certified for use and operation in ECIC’s operating environment. Furthermore, Vendor acknowledges that it has reviewed the hardware system ordered by ECIC and represents and warrants that such hardware system is sufficient for ECIC’s current and reasonably projected use, including account and transaction volumes.

10.11 Final Acceptance of the System

The system proposed shall be defined to be finally accepted by ECIC after the

installation of the equipment, training, and successful completion of the following

performance examinations: system hardware examination, software performance

examination, system functional competence examination, system capacity

examination, full-load processing capacity examination, system availability

examination, approval of as-builts, training, and system documentation. The ECIC

shall be the sole judge of whether all conditions for final acceptance criteria have

been met. Upon final acceptance, title to the system is deemed to be conveyed to

the ECIC.

10.12 Standard Forms and Contracts

Any forms and contracts the Vendor proposes to include as part of the Agreement

must be submitted as part of this proposal. Any forms and contracts not submitted

as part of the proposal and subsequently presented for inclusion may be rejected.

ECIC reserves the right to accept or reject in whole or in part any form contract

submitted by a vendor and/or to require that amendments be made thereto, or that

an agreement drafted by the ECIC be utilized. This requirement includes, but is not

limited to, the following types of forms: subcontractor, franchise, warranty

agreements, maintenance contracts, and support agreements. The ECIC will have

the right to negotiate any and all contracts/agreements and prices/fees with the

finalist bidder, if doing so is deemed in the best interest of the ECIC.

10.13 Advertisement

Vendor shall not use, in its external advertising, marketing programs, or other

promotional efforts, any data, pictures, or other representation of the ECIC unless

Vendor receives specific written authorization in advance from the ECIC. Vendor

will limit and direct any of its advertising on the ECIC’s premises and shall make

arrangements for such advertising. Vendor shall not install any signs or other

displays within or outside of the ECIC’s premises unless in each instance the prior

written approval of the ECIC has been obtained. However, nothing in this clause

shall preclude Vendor from listing the ECIC on its routine list for matters of

reference.


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10.14 Password Security

The Vendor warrants that no ‘back door’ password or other method of remote

access into the software code exists. The Vendor agrees that any and all access to

any software code residing on the ECIC server must be granted by the ECIC to the

Vendor, at its sole discretion.

10.15 Non-Performance Procedures

In the event that the ECIC determines that the Vendor is not performing in a manner

consistent with the intent and spirit of this Agreement or in a manner consistent with

commonly accepted business practices, then the ECIC shall have the right to do

any of the following: (a) formally notify Vendor of non-performance, (b) reserve the

right to withhold any and all payments pending, including support and maintenance

agreement fees, until the non-performance is corrected, (c) request a joint meeting

of Vendor and ECIC decision makers to attempt to resolve the non-performance, (d)

require a Vendor employee to be on-site at ECIC’s location until the non-

performance is resolved, (e) invoke the Termination clause herein.

10.16 Replication of Software

ECIC shall not copy Software for any purposes other than for back up or disaster

recovery. ECIC has the right to develop interfaces to, and/or database applications

that integrate with, the licensed Software using Vendor’s recommended database

and development tools without voiding the Support Agreement or warranties herein.

10.17 Project Schedule and Acceptance

Vendor will develop a detailed Project Schedule that details both Vendor and

ECIC’s responsibilities. The Project Schedule should be in sufficient detail to specify

the conversion, training, testing, acceptance, and live operation activities. Both

Vendor and ECIC agree that a mutually agreeable Project Schedule will be

submitted to and approved by the ECIC to be completed within ……. days of the

Effective Date. In the event that the Vendor is unable to provide the Project

Schedule within …… days, ECIC will have at its option, the ability to terminate the

Agreement and obtain all fees paid to Vendor. The Project Schedule will also

include the criteria by which the software will be tested and accepted by ECIC.

10.18 Acceptance Testing

For purposes of acceptance of the System (or portions thereof), the parties intend

to use the following staged acceptance procedure. All timeframes specified in the

following procedures may be overridden by the Project Schedule.

I. Written Deliverable: Vendor shall submit interim drafts (stamped, noted or otherwise clearly marked “Draft”) of a written deliverable to ECIC for review prior to approval. ECIC agrees to review and provide comments to Vendor on each interim draft within the agreed reasonable time after


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receiving it from Vendor. Any proposed amendments to the written deliverable requested by the ECIC shall be promptly correct by the Vendor and returned to ECIC for Acceptance. ECIC will not unreasonably withhold, delay or condition its approval of a final written deliverable. Vendor is responsible for tracking status of each deliverable including but not limited to the date in which it was submitted to the ECIC and date returned.

II. Software Deliverable: Acceptance testing is an iterative process designed to determine whether the Software Deliverable performs the functions described in its approved Specifications and to discover and remove Defects through repeated testing cycles. “Specification” means the Project Scope and Requirements found at Exhibit “….” and any other written specifications delivered to the ECIC by the Vendor during the course of the project or the Application Software Documentation. In the event of conflicts between Specifications and Application Software Documentation the Specifications will prevail.

Vendor will work with the ECIC and make a good faith effort to develop a test plan with the requisite details, understanding the level of detail required may change depending on the complexity of the requested software deliverable and to test each software deliverable (the “Acceptance Tests” or “Acceptance Testing”).

a. The “Acceptance Test Period” for each Software Deliverable will be five (5) Business Days unless an alternate time is mutually agreed upon between Vendor and ECIC. The Acceptance Test Period for each Software Deliverable will start within five (5) Business Days, unless an alternate start date is mutually agreed upon by Vendor and ECIC, after the Software Deliverable is installed at ECIC’s designated site and Vendor has successfully completed Vendor’s installation test and notified ECIC that the Software deliverable is “Ready for Acceptance Testing.” Vendor will not be obligated to deliver a Software Deliverable to ECIC until ECIC demonstrates the readiness of the target technical platform and environment, as described in Exhibit “….”, and according to the Project Scope and Requirements.

b. If ECIC determines during the Acceptance Test Period that the Software Deliverable contains a Defect, ECIC will promptly send the Vendor a written notice reporting the alleged Defect describing it to the Vendor in sufficient detail reasonably necessary for Vendor to recreate it. Vendor will modify the Software Deliverable to remove the reported Defect and will provide the modifications to ECIC for re-testing. ECIC will then re-test the modified portions of the Software Deliverable promptly after receiving the modifications from Vendor. In such a case, Vendor and ECIC will mutually agree upon an updated Acceptance Test Period.

c. By the end of the Acceptance Testing Period ECIC will provide Vendor with a final written list reporting any outstanding Defects


33

(the “Snag List”). ECIC will have ten (10) Business Days after the receipt of the modifications to re-test the modified Software deliverable to confirm that the Defects that were reported on the Snag List have been removed. If any Defects that were reported on the Snag List have not been removed, ECIC will provide Vendor with written notification by the end of the retesting period reporting any such Defects. In such event, the procedures set forth in this paragraph will be repeated for the remaining Defects on the Snag List.

d. Vendor and ECIC each agrees to work diligently to achieve acceptance of Software Deliverable at the earliest possible date.

III. “User Acceptance Testing” shall mean testing of each Phase using the

process defined under Part <__> - Section <__>; provided, however, the Acceptance Test Period will be ……… days unless otherwise mutually agreed.

IV. “Conditional Acceptance” will occur upon the earlier of correction of Defects reported as part of User Acceptance Testing of the Phase, or Go-Live of the Phase. There will be a Conditional Acceptance for each Phase; Conditional Acceptance after the final Phase constitutes Conditional Acceptance of the entire Solution. Unless the Project Schedule determines otherwise, the Acceptance Test Period for User Acceptance Testing will be …….days, Vendor and ECIC will work diligently to put the Phase into Go Live operations.

V. “Final Acceptance” involves use of the Solution in totality in production operations for a period of ……….. days. It will include use of the Phases and/or the System previously tested and conditionally accepted. If after ………… days the Solution performs without Defects, the ECIC and the Vendor will both issue and execute a “Final Acceptance” of the Phase. The time frame for Final Acceptance will stop if Defects are found during production use and prevent further production use of the Solution. The Final Acceptance process will resume on the date the Defect is confirmed as fixed and will continue for the remainder of the Final Acceptance time frame. There will be a Final Acceptance for each Phase; Final Acceptance after the final Phase constitutes Final Acceptance of the entire Solution.

10.19 Payment Terms

Specific payment terms will be negotiated as part of the final contract. It is expected that

certain payments will be made upon delivery of the hardware and software with additional

payments made based on specific project milestones. Vendor shall submit to the ECIC for

its review a pay request in a form agreeable to the ECIC. The pay request shall be

accompanied by such supporting documentation as required by the ECIC.


34

10.20 Travel Expense Reimbursement

All travel expense costs must be included in the Vendor’s fixed price cost. ECIC will not

make a separate payment for reimbursable expenses. ECIC shall not be liable for

additional travel costs incurred due for any reason outside ECIC’s control.

10.21 Conflict of Interest

The Vendor shall not employ as a director, officer, employee, agent, or subcontractor any

elected or appointed official of the ECIC or any member of his/her immediate family.

10.22 Intellectual Property

All information, data, programs, publications & media created specifically for and paid for by the

ECIC or as a result of the work identified in this Agreement is the property of the ECIC unless

otherwise noted, copyright protected, or defined or agreed to by both parties to this Agreement.


35

11 ANNEXURE A – General Conditions of Contract


36

THE NATIONAL TREASURY

Republic of South Africa

GOVERNMENT PROCUREMENT:

GENERAL CONDITIONS OF CONTRACT

July 2010


37

GOVERNMENT PROCUREMENT

GENERAL CONDITIONS OF CONTRACT

July 2010

NOTES

The purpose of this document is to:

(i) Draw special attention to certain general conditions

applicable to government bids, contracts and orders; and

(ii) To ensure that clients be familiar with regard to the rights

and obligations of all parties involved in doing business

with government.

In this document words in the singular also mean in the plural

and vice versa and words in the masculine also mean in the

feminine and neuter.

The General Conditions of Contract will form part of

all bid documents and may not be amended.

Special Conditions of Contract (SCC) relevant to a specific

bid, should be compiled separately for every bid (if

(applicable) and will supplement the General Conditions

of Contract. Whenever there is a conflict, the provisions

in the SCC shall prevail

.


38

TABLE OF CLAUSES

1. Definitions

2. Application

3. General 4. Standards

5. Use of contract documents and information; inspection

6. Patent rights

7. Performance security 8. Inspections, tests and analysis

9. Packing

10. Delivery and documents 11. Insurance

12. Transportation

13. Incidental services 14. Spare parts

15. Warranty

16. Payment

17. Prices

18. Contract amendments

19. Assignment

20. Subcontracts 21. Delays in the supplier’s performance

22. Penalties

23. Termination for default 24. Dumping and countervailing duties

25. Force Majeure

26. Termination for insolvency

27. Settlement of disputes

28. Limitation of liability

29. Governing language 30. Applicable law

31. Notices

32. Taxes and duties 33. National Industrial Participation Programme (NIPP)

34. Prohibition of restrictive practices


39

General Conditions of Contract

1. Definitions 1. The following terms shall be interpreted as indicated:

1.1 “Closing time” means the date and hour specified in the bidding

documents for the receipt of bids.

1.2 “Contract” means the written agreement entered into between the

purchaser and the supplier, as recorded in the contract form signed by

the parties, including all attachments and appendices thereto and all

documents incorporated by reference therein.

1.3 “Contract price” means the price payable to the supplier under the

contract for the full and proper performance of his contractual

obligations.

1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting

of any thing of value to influence the action of a public official in the

procurement process or in contract execution.

1.5 "Countervailing duties" are imposed in cases where an enterprise

abroad is subsidized by its government and encouraged to market its

products internationally.

1.6 “Country of origin” means the place where the goods were mined,

grown or produced or from which the services are supplied. Goods are

produced when, through manufacturing, processing or substantial and

major assembly of components, a commercially recognized new

product results that is substantially different in basic characteristics or

in purpose or utility from its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the

contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock

actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and

unloaded in the specified store or depot or on the specified site in

compliance with the conditions of the contract or order, the supplier

bearing all risks and charges involved until the supplies are so

delivered and a valid receipt is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods

on own initiative in the RSA at lower prices than that of the country of

origin and which have the potential to harm the local industries in the


40

RSA.

1.12 ”Force majeure” means an event beyond the control of the supplier and

not involving the supplier’s fault or negligence and not foreseeable.

Such events may include, but is not restricted to, acts of the purchaser

in its sovereign capacity, wars or revolutions, fires, floods, epidemics,

quarantine restrictions and freight embargoes.

1.13 “Fraudulent practice” means a misrepresentation of facts in order to

influence a procurement process or the execution of a contract to the

detriment of any bidder, and includes collusive practice among bidders

(prior to or after bid submission) designed to establish bid prices at

artificial non-competitive levels and to deprive the bidder of the

benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

1.15 “Goods” means all of the equipment, machinery, and/or other materials

that the supplier is required to supply to the purchaser under the contract.

1.16 “Imported content” means that portion of the bidding price represented

by the cost of components, parts or materials which have been or are

still to be imported (whether by the supplier or his subcontractors) and

which costs are inclusive of the costs abroad, plus freight and other

direct importation costs such as landing costs, dock dues, import duty,

sales duty or other similar tax or duty at the South African place of

entry as well as transportation and handling charges to the factory in

the Republic where the supplies covered by the bid will be

manufactured.

1.17 “Local content” means that portion of the bidding price which is not

included in the imported content provided that local manufacture does

take place.

1.18 “Manufacture” means the production of products in a factory using

labour, materials, components and machinery and includes other

related value-adding activities.

1.19 “Order” means an official written order issued for the supply of goods

or works or the rendering of a service.

1.20 “Project site,” where applicable, means the place indicated in bidding

documents.

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillary to the supply of

the goods, such as transportation and any other incidental services,

such as installation, commissioning, provision of technical assistance,

training, catering, gardening, security, maintenance and other such


41

obligations of the supplier covered under the contract.

1.25 “Written” or “in writing” means handwritten in ink or any form of

electronic or mechanical writing.

2. Application 2.1 These general conditions are applicable to all bids, contracts and orders

including bids for functional and professional services, sales, hiring,

letting and the granting or acquiring of rights, but excluding

immovable property, unless otherwise indicated in the bidding

documents.

2.2 Where applicable, special conditions of contract are also laid down to

cover specific supplies, services or works.

2.3 Where such special conditions of contract are in conflict with these

general conditions, the special conditions shall apply.

3. General 3.1 Unless otherwise indicated in the bidding documents, the purchaser

shall not be liable for any expense incurred in the preparation and

submission of a bid. Where applicable a non-refundable fee for

documents may be charged.

3.2 With certain exceptions, invitations to bid are only published in the

Government Tender Bulletin. The Government Tender Bulletin may be

obtained directly from the Government Printer, Private Bag X85,

Pretoria 0001, or accessed electronically from www.treasury.gov.za

4. Standards 4.1 The goods supplied shall conform to the standards mentioned in the

bidding documents and specifications.

5. Use of

contract

documents

and

information;

inspection.

5.1 The supplier shall not, without the purchaser’s prior written consent,

disclose the contract, or any provision thereof, or any specification,

plan, drawing, pattern, sample, or information furnished by or on

behalf of the purchaser in connection therewith, to any person other

than a person employed by the supplier in the performance of the

contract. Disclosure to any such employed person shall be made in

confidence and shall extend only so far as may be necessary for

purposes of such performance.

5.2 The supplier shall not, without the purchaser’s prior written consent,

make use of any document or information mentioned in GCC clause 5.1 except for purposes of performing the contract.

5.3 Any document, other than the contract itself mentioned in GCC clause

5.1 shall remain the property of the purchaser and shall be returned (all

copies) to the purchaser on completion of the supplier’s performance

under the contract if so required by the purchaser.

5.4 The supplier shall permit the purchaser to inspect the supplier’s records

relating to the performance of the supplier and to have them audited by

auditors appointed by the purchaser, if so required by the purchaser.

6. Patent rights 6.1 The supplier shall indemnify the purchaser against all third-party

claims of infringement of patent, trademark, or industrial design rights

arising from use of the goods or any part thereof by the purchaser.

http://www.treasury.gov.za/

http://www.treasury.gov.za/


42

7. Performance security

7.1 Within thirty (30) days of receipt of the notification of contract award,

the successful bidder shall furnish to the purchaser the performance

security of the amount specified in SCC.

7.2 The proceeds of the performance security shall be payable to the

purchaser as compensation for any loss resulting from the supplier’s

failure to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the

contract, or in a freely convertible currency acceptable to the purchaser

and shall be in one of the following forms:

(a) a bank guarantee or an irrevocable letter of credit issued by a

reputable bank located in the purchaser’s country or abroad,

acceptable to the purchaser, in the form provided in the

bidding documents or another form acceptable to the

purchaser; or

(b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and

returned to the supplier not later than thirty (30) days following the

date of completion of the supplier’s performance obligations under the

contract, including any warranty obligations, unless otherwise

specified in SCC.

8. Inspections,

tests and

analyses

8.1 All pre-bidding testing will be for the account of the bidder.

8.2 If it is a bid condition that supplies to be produced or services to be

rendered should at any stage during production or execution or on

completion be subject to inspection, the premises of the bidder or

contractor shall be open, at all reasonable hours, for inspection by a

representative of the Department or an organization acting on behalf of

the Department.

8.3 If there are no inspection requirements indicated in the bidding

documents and no mention is made in the contract, but during the

contract period it is decided that inspections shall be carried out, the

purchaser shall itself make the necessary arrangements, including

payment arrangements with the testing authority concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3

show the supplies to be in accordance with the contract requirements,

the cost of the inspections, tests and analyses shall be defrayed by the

purchaser.

8.5 Where the supplies or services referred to in clauses 8.2 and 8.3 do not

comply with the contract requirements, irrespective of whether such

supplies or services are accepted or not, the cost in connection with

these inspections, tests or analyses shall be defrayed by the supplier.

8.6 Supplies and services which are referred to in clauses 8.2 and 8.3 and

which do not comply with the contract requirements may be rejected. 8.7 Any contract supplies may on or after delivery be inspected, tested or


43

analyzed and may be rejected if found not to comply with the

requirements of the contract. Such rejected supplies shall be held at the

cost and risk of the supplier who shall, when called upon, remove them

immediately at his own cost and forthwith substitute them with

supplies which do comply with the requirements of the contract.

Failing such removal the rejected supplies shall be returned at the

suppliers cost and risk. Should the supplier fail to provide the

substitute supplies forthwith, the purchaser may, without giving the

supplier further opportunity to substitute the rejected supplies,

purchase such supplies as may be necessary at the expense of the

supplier.

8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the

purchaser to cancel the contract on account of a breach of the

conditions thereof, or to act in terms of Clause 23 of GCC.

9. Packing 9.1 The supplier shall provide such packing of the goods as is required to

prevent their damage or deterioration during transit to their final

destination, as indicated in the contract. The packing shall be

sufficient to withstand, without limitation, rough handling during

transit and exposure to extreme temperatures, salt and precipitation

during transit, and open storage. Packing, case size and weights shall

take into consideration, where appropriate, the remoteness of the

goods’ final destination and the absence of heavy handling facilities at

all points in transit.

9.2 The packing, marking, and documentation within and outside the

packages shall comply strictly with such special requirements as shall

be expressly provided for in the contract, including additional

requirements, if any, specified in SCC, and in any subsequent

instructions ordered by the purchaser.

10. Delivery

and documents 10.1 Delivery of the goods shall be made by the supplier in accordance with

the terms specified in the contract. The details of shipping and/or other

documents to be furnished by the supplier are specified in SCC.

10.2 Documents to be submitted by the supplier are specified in SCC.

11. Insurance 11.1 The goods supplied under the contract shall be fully insured in a freely

convertible currency against loss or damage incidental to manufacture

or acquisition, transportation, storage and delivery in the manner

specified in the SCC.

12. Transportation 12.1 Should a price other than an all-inclusive delivered price be required,

this shall be specified in the SCC.

13. Incidental services

13.1 The supplier may be required to provide any or all of the following services, including additional services, if any, specified in SCC:

(a) performance or supervision of on-site assembly and/or

commissioning of the supplied goods; (b) furnishing of tools required for assembly and/or maintenance

of the supplied goods; (c) furnishing of a detailed operations and maintenance manual

for each appropriate unit of the supplied goods;


44

(d) performance or supervision or maintenance and/or repair of

the supplied goods, for a period of time agreed by the parties,

provided that this service shall not relieve the supplier of any

warranty obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant

and/or on-site, in assembly, start-up, operation,

maintenance, and/or repair of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in

the contract price for the goods, shall be agreed upon in advance by the

parties and shall not exceed the prevailing rates charged to other

parties by the supplier for similar services.

14. Spare parts 14.1 As specified in SCC, the supplier may be required to provide any or all

of the following materials, notifications, and information pertaining to

spare parts manufactured or distributed by the supplier:

(a) such spare parts as the purchaser may elect to purchase from the

supplier, provided that this election shall not relieve the supplier

of any warranty obligations under the contract; and

(b) in the event of termination of production of the spare parts:

(i) Advance notification to the purchaser of the pending

termination, in sufficient time to permit the purchaser to

procure needed requirements; and

(ii) following such termination, furnishing at no cost to the

purchaser, the blueprints, drawings, and specifications of the

spare parts, if requested.

15. Warranty 15.1 The supplier warrants that the goods supplied under the contract are

new, unused, of the most recent or current models, and that they

incorporate all recent improvements in design and materials unless

provided otherwise in the contract. The supplier further warrants that

all goods supplied under this contract shall have no defect, arising from

design, materials, or workmanship (except when the design and/or

material is required by the purchaser’s specifications) or from any act

or omission of the supplier, that may develop under normal use of the

supplied goods in the conditions prevailing in the country of final

destination.

15.2 This warranty shall remain valid for twelve (12) months after the

goods, or any portion thereof as the case may be, have been delivered

to and accepted at the final destination indicated in the contract, or for

eighteen (18) months after the date of shipment from the port or place

of loading in the source country, whichever period concludes earlier,

unless specified otherwise in SCC.

15.3 The purchaser shall promptly notify the supplier in writing of any

claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period

specified in SCC and with all reasonable speed, repair or replace the

defective goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s)

within the period specified in SCC, the purchaser may proceed to take


45

such remedial action as may be necessary, at the supplier’s risk and

expense and without prejudice to any other rights which the purchaser

may have against the supplier under the contract.

16. Payment 16.1 The method and conditions of payment to be made to the supplier

under this contract shall be specified in SCC.

16.2 The supplier shall furnish the purchaser with an invoice accompanied

by a copy of the delivery note and upon fulfillment of other obligations

stipulated in the contract.

16.3 Payments shall be made promptly by the purchaser, but in no case later

than thirty (30) days after submission of an invoice or claim by the

supplier.

16.4 Payment will be made in Rand unless otherwise stipulated in SCC.

17. Prices 17.1 Prices charged by the supplier for goods delivered and services

performed under the contract shall not vary from the prices quoted by

the supplier in his bid, with the exception of any price adjustments

authorized in SCC or in the purchaser’s request for bid validity

extension, as the case may be.

18. Contract amendments

18.1 No variation in or modification of the terms of the contract shall be

made except by written amendment signed by the parties concerned.

19. Assignment 19.1 The supplier shall not assign, in whole or in part, its obligations to

perform under the contract, except with the purchaser’s prior written

consent.

20. Subcontracts 20.1 The supplier shall notify the purchaser in writing of all subcontracts

awarded under this contracts if not already specified in the bid. Such

notification, in the original bid or later, shall not relieve the supplier

from any liability or obligation under the contract.

21. Delays in the

supplier’s

performance

21.1 Delivery of the goods and performance of services shall be made by

the supplier in accordance with the time schedule prescribed by the

purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its

subcontractor(s) should encounter conditions impeding timely delivery

of the goods and performance of services, the supplier shall promptly

notify the purchaser in writing of the fact of the delay, its likely

duration and its cause(s). As soon as practicable after receipt of the

supplier’s notice, the purchaser shall evaluate the situation and may at

his discretion extend the supplier’s time for performance, with or

without the imposition of penalties, in which case the extension shall

be ratified by the parties by amendment of contract.

21.3 No provision in a contract shall be deemed to prohibit the obtaining of

supplies or services from a national department, provincial department,

or a local authority.

21.4 The right is reserved to procure outside of the contract small quantities

or to have minor essential services executed if an emergency arises, the


46

supplier’s point of supply is not situated at or near the place where the

supplies are required, or the supplier’s services are not readily

available.

21.5 Except as provided under GCC Clause 25, a delay by the supplier in

the performance of its delivery obligations shall render the supplier

liable to the imposition of penalties, pursuant to GCC Clause 22,

unless an extension of time is agreed upon pursuant to GCC Clause

21.2 without the application of penalties.

21.6 Upon any delay beyond the delivery period in the case of a supplies

contract, the purchaser shall, without canceling the contract, be entitled

to purchase supplies of a similar quality and up to the same quantity in

substitution of the goods not supplied in conformity with the contract

and to return any goods delivered later at the supplier’s expense and

risk, or to cancel the contract and buy such goods as may be required

to complete the contract and without prejudice to his other rights, be

entitled to claim damages from the supplier.

22. Penalties 22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of

the goods or to perform the services within the period(s) specified in

the contract, the purchaser shall, without prejudice to its other remedies

under the contract, deduct from the contract price, as a penalty, a sum

calculated on the delivered price of the delayed goods or unperformed

services using the current prime interest rate calculated for each day of

the delay until actual delivery or performance. The purchaser may also

consider termination of the contract pursuant to GCC Clause 23.

23. Termination for default

23.1 The purchaser, without prejudice to any other remedy for breach of

contract, by written notice of default sent to the supplier, may

terminate this contract in whole or in part:

(a) if the supplier fails to deliver any or all of the goods within

the period(s) specified in the contract, or within any

extension thereof granted by the purchaser pursuant to GCC

Clause 21.2; (b) if the Supplier fails to perform any other obligation(s) under

the contract; or (c) if the supplier, in the judgment of the purchaser, has

engaged in corrupt or fraudulent practices in competing for or in executing the contract.

23.2 In the event the purchaser terminates the contract in whole or in part,

the purchaser may procure, upon such terms and in such manner as it

deems appropriate, goods, works or services similar to those undelivered,

and the supplier shall be liable to the purchaser for any excess costs for

such similar goods, works or services. However, the supplier shall

continue performance of the contract to the extent not terminated.

23.3 Where the purchaser terminates the contract in whole or in part, the

purchaser may decide to impose a restriction penalty on the supplier by

prohibiting such supplier from doing business with the public sector for a

period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any


47

person associated with the supplier, the supplier will be allowed a time

period of not more than fourteen (14) days to provide reasons why the

envisaged restriction should not be imposed. Should the supplier fail to

respond within the stipulated fourteen (14) days the purchaser may regard

the intended penalty as not objected against and may impose it on the

supplier.

23.5 Any restriction imposed on any person by the Accounting Officer /

Authority will, at the discretion of the Accounting Officer / Authority,

also be applicable to any other enterprise or any partner, manager,

director or other person who wholly or partly exercises or exercised or

may exercise control over the enterprise of the first-mentioned person,

and with which enterprise or person the first-mentioned person, is or was

in the opinion of the Accounting Officer / Authority actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working

days of such imposition, furnish the National Treasury, with the

following information: (i) the name and address of the supplier and / or person restricted by the

purchaser; (ii) the date of commencement of the restriction (iii) the period of restriction; and

(iv) the reasons for the restriction.

These details will be loaded in the National Treasury’s central database

of suppliers or persons prohibited from doing business with the public

sector.

23.7 If a court of law convicts a person of an offence as contemplated in

sections 12 or 13 of the Prevention and Combating of Corrupt Activities

Act, No. 12 of 2004, the court may also rule that such person’s name be

endorsed on the Register for Tender Defaulters. When a person’s name

has been endorsed on the Register, the person will be prohibited from

doing business with the public sector for a period not less than five years

and not more than 10 years. The National Treasury is empowered to

determine the period of restriction and each case will be dealt with on its

own merits. According to section 32 of the Act the Register must be

open to the public. The Register can be perused on the National Treasury

website.

24. Anti-dumping

and countervailing

duties and rights

24.1 When, after the date of bid, provisional payments are required, or anti-

dumping or countervailing duties are imposed, or the amount of a

provisional payment or anti-dumping or countervailing right is

increased in respect of any dumped or subsidized import, the State is

not liable for any amount so required or imposed, or for the amount of

any such increase. When, after the said date, such a provisional

payment is no longer required or any such anti-dumping or

countervailing right is abolished, or where the amount of such

provisional payment or any such right is reduced, any such favourable

difference shall on demand be paid forthwith by the contractor to the

State or the State may deduct such amounts from moneys (if any)

which may otherwise be due to the contractor in regard to supplies or

services which he delivered or rendered, or is to deliver or render in

terms of the contract or any other contract or any other amount which


48

may be due to him

25. Force Majeure

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the

supplier shall not be liable for forfeiture of its performance security,

damages, or termination for default if and to the extent that his delay in

performance or other failure to perform his obligations under the

contract is the result of an event of force majeure.

25.2 If a force majeure situation arises, the supplier shall promptly notify

the purchaser in writing of such condition and the cause thereof.

Unless otherwise directed by the purchaser in writing, the supplier

shall continue to perform its obligations under the contract as far as is

reasonably practical, and shall seek all reasonable alternative means for

performance not prevented by the force majeure event.

26. Termination

for insolvency 26.1 The purchaser may at any time terminate the contract by giving written

notice to the supplier if the supplier becomes bankrupt or otherwise

insolvent. In this event, termination will be without compensation to

the supplier, provided that such termination will not prejudice or affect

any right of action or remedy which has accrued or will accrue

thereafter to the purchaser.

27. Settlement of

Disputes

28. Limitation of

liability

27.1 If any dispute or difference of any kind whatsoever arises between the

purchaser and the supplier in connection with or arising out of the

contract, the parties shall make every effort to resolve amicably such

dispute or difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute

or difference by such mutual consultation, then either the purchaser or

the supplier may give notice to the other party of his intention to

commence with mediation. No mediation in respect of this matter may

be commenced unless such notice is given to the other party.

27.3 Should it not be possible to settle a dispute by means of mediation, it

may be settled in a South African court of law.

27.4 Mediation proceedings shall be conducted in accordance with the rules

of procedure specified in the SCC.

27.5 Notwithstanding any reference to mediation and/or court proceedings

herein,

(a) the parties shall continue to perform their respective obligations

under the contract unless they otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier.

28.1 Except in cases of criminal negligence or willful misconduct, and in

the case of infringement pursuant to Clause 6; (a) the supplier shall not be liable to the purchaser, whether in

contract, tort, or otherwise, for any indirect or consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay penalties and/or damages to the purchaser; and


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32.2 A local supplier shall be entirely responsible for all taxes, duties,

license fees, etc., incurred until delivery of the contracted goods to

the purchaser.

32.3

No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the award of a bid the Department must be in possession of a tax clearance certificate, submitted by the bidder. This certificate must be an original issued by the South African Revenue Services.

33.

Industrial

National

33.1

The NIP Programme administered by the Department of Trade and

Industry shall be applicable to all contracts that are subject to the Participatio n (NIP) NIP obligation.

29. Governing

language

(b) the aggregate liability of the supplier to the purchaser, whether

under the contract, in tort or otherwise, shall not exceed the total

contract price, provided that this limitation shall not apply to the

cost of repairing or replacing defective equipment.

29.1 The contract shall be written in English. All correspondence and other

documents pertaining to the contract that is exchanged by the parties

shall also be written in English.

30. Applicable

law 30.1 The contract shall be interpreted in accordance with South African

laws, unless otherwise specified in SCC.

31. Notices 31.1 Every written acceptance of a bid shall be posted to the supplier

concerned by registered or certified mail and any other notice to him

shall be posted by ordinary mail to the address furnished in his bid or

to the address notified later by him in writing and such posting shall be

deemed to be proper service of such notice

31.2 The time mentioned in the contract documents for performing any act

after such aforesaid notice has been given, shall be reckoned from the

date of posting of such notice.

32. Taxes and

duties 32.1 A foreign supplier shall be entirely responsible for all taxes, stamp

duties, license fees, and other such levies imposed outside the

purchaser’s country.

Programme

34 Prohibition of Restrictive practices

34.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. 89 of

1998, as amended, an agreement between, or concerted practice by,

firms, or a decision by an association of firms, is prohibited if it is

between parties in a horizontal relationship and if a bidder (s) is / are

or a contractor(s) was / were involved in collusive bidding (or bid

rigging).

34.2 If a bidder(s) or contractor(s), based on reasonable grounds or

evidence obtained by the purchaser, has / have engaged in the

restrictive practice referred to above, the purchaser may refer the

matter to the Competition Commission for investigation and possible

imposition of administrative penalties as contemplated in the

Competition Act No. 89 of 1998.

Request For PROPOSAL (RFP): ENTERPRISE RESOURCE PLANNING (ERP) Terms of Reference AUGUST 2014

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34.3 If a bidder(s) or contractor(s), has / have been found guilty by the

Competition Commission of the restrictive practice referred to above,

the purchaser may, in addition and without prejudice to any other remedy

provided for, invalidate the bid(s) for such item(s) offered, and / or

terminate the contract in whole or part, and / or restrict the bidder(s) or

contractor(s) from conducting business with the public sector for a period

not exceeding ten (10) years and / or claim damages from the bidder(s) or

contractor(s) concerned.

Js General Conditions of Contract (revised July 2010)


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12 ANNEXURE B – Bid Response Document – Technical Proposal


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13 ANNEXURE C – Bid Response Document – Price Proposal


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14 ANNEXURE D – ERP Software and Implementation Services – Specifications.xlsx


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15 ANNEXURE E – ERP Software and Implementation Services– Price Schedule.xlsx

REQUEST FOR PROPOSAL ENTERPRISE RESOURCE PLANNING (ERP ...test.ecic.co.za/useruploads/files/ERP...

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