TENDERS ARE STRICTLY DUE ON: 30 SEPTEMBER 2013 AT 14:00

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1 RE - ISSUE 1 ENQUIRY NO. LE 0403 ARCELORMITTAL SOUTH AFRICA INVITES TENDERS FOR ROAD TRANSPORT OF SCRAP FROM SPECIAL PROFILE AND SHAVINGS FROM STEEL FORGE PLANT IN PRETORIA WORKS TO VEREENIGING VAAL WORKS. TENDERS ARE STRICTLY DUE ON: 30 SEPTEMBER 2013 AT 14:00 IMPORTANT NOTICE The Tenders MUST BE DEPOSITED in the TENDER BOX (in duplicate) at the under mentioned physical address ArcelorMittal VANDERBIJLPARK Main Entrance (approach from Delfos Boulevard) Directions to TENDER BOX are indicated as such when entering ArcelorMittal Vanderbijlpark Works. Tenders may also be ed to the official tender address: TenderOffice@arcelormittal.com or fax: but handing it in at the Tender Box is preferred (PLEASE DO NOT INCLUDE A COPY OF THIS ENQUIRY IN YOUR TENDER.) (Also see paragraph 2.1) DATE ISSUED: 10 SEPTEMBER 2013

2 INDEX PART 1 - GENERAL, LEGAL, COMMERCIAL & FINANCIAL ASPECTS INSTRUCTIONS TO TENDERER TENDERS TARIFFS PAYMENT DETAILS CONFIDENTIAL DURATION... 7 PART 2 - Specification DESCRIPTING OF THE MATERIAL TO BE TRANSPORTED SCOPE OF WORK SUCCESSFUL TENDERER S OBLIGATIONS TONNAGES... 9 ANNEXURE A - OCCUPATIONAL HEALTH AND SAFETY ACT, ACT NO 85 OF

3 PART 1 - GENERAL, LEGAL, COMMERCIAL & FINANCIAL ASPECTS 1. INSTRUCTIONS TO TENDERER 1.1. Discrepancies The Tenderer shall control the page numbers and number of the pages before submission of his Tender. Should any page be found to be missing or figures or writing be indistinct or any obscurity or doubt arise as to the meaning of any description or particulars of any item or if the Tender document contains any discrepancies or obvious errors, then the Tenderer shall immediately inform the Procurement Graduate in Training, ArcelorMittal (see par ) and have the problem rectified or explained as the case may be. No claim whatsoever will be entertained for faults in the Tender price/s resulting from the abovementioned discrepancies Should there be any contradictions, discrepancies and/or ambiguities between any of the documents or parts thereof embodied in the Enquiry documents, this should be pointed out to ArcelorMittal for clarification during the tendering stage, as no claim as a result of such contradictions, discrepancies or ambiguities will afterwards be considered by ArcelorMittal. In the absence of any clarification having been obtained from ArcelorMittal, the Tender must be qualified accordingly Alterations, omissions or additions No alterations, omissions or additions shall be made to this document, but should it be deemed necessary to do so, then the Tenderer must qualify his Tender accordingly Contractual queries Contractual and/or Commercial Queries or information required with regard to this Enquiry document may be discussed with the Procurement Graduate in Training, ArcelorMittal: Refilwe Palayi on Landline: (016) or refilwe.palayi@arcelormittal.com 3

4 2. TENDERS 2.1. Submission of Tender The complete Tender shall be supplied to ArcelorMittal (see cover page) and shall be submitted in duplicate and in sealed envelopes or parcels on which the name of the Tenderer is not disclosed and shall be marked and addressed as follows: TENDER: RE -.ISSUE ENQUIRY NO. LE 0403 ROAD TRANSPORT OF SCRAP FROM SPECIAL PROFILE AND SHAVINGS FROM STEEL FORGE PLANT IN PRETORIA WORKS TO VEREENIGING VAAL WORKS Tender shall be submitted to ArcelorMittal not later than the closing time and date for receipt of Tenders as mentioned on the cover page. A Tender, which due to its size, cannot be deposited in the tender box shall be handed to the security officer on duty Incorrect address Any Tender inadvertently opened before the closing time and date for the receipt of Tenders due to an incorrect address or marking, will not be considered by ArcelorMittal Tenders to be complete The Tenderer shall submit a complete tender to ArcelorMittal. No additional submission of information pertaining to an incomplete Tender will be permitted after the closing date and time. Non-compliance with this prerequisite may render the Tender liable to rejection Variations/qualifications by Tenderers/alternative Tender The Tenderer shall tender strictly in accordance with the requirements of this Enquiry document, but is allowed to submit in addition alternative Tender(s) in which case the alternative Tender(s) shall consists of all the relevant information in order to submit a complete tender. Where the Tenderer decides to deviate from the conditions and/or specifications of the Enquiry document(s) or in any way qualifies his Tender, such deviation or qualification shall be clearly set out in his Tender document, failing which the Tender will be deemed to be submitted unqualified and in non-compliance with all conditions and specifications of the Enquiry documents Late Tender ArcelorMittal will not consider late Tenders, i.e. Tenders received by the Tender Office, ArcelorMittal Vanderbijlpark, after the closing date and time for submission of Tenders. 4

5 2.6. Lowest Tender ArcelorMittal does not bind itself to accept the lowest or any Tender, nor to assign any reason for the rejection or acceptance of a Tender. No Tender shall be deemed to have been accepted unless such acceptance has been conveyed to the Tenderer by notice in writing or by telefax from ArcelorMittal Validity of Tender Tenders shall remain valid for a period of 120 days from the due date for the receipt of Tenders during which period ArcelorMittal shall have the right to accept a Tender without any right of withdrawal on the part of the Tenderer Information that must be supplied by Tenderer PLEASE NOTE THAT AN INCOMPLETE TENDER WILL NOT BE CONSIDERED Date when rendering of service can commence (or notice period needed before your company can commence) ArcelorMittal needs the transport of this products to commence no later than 01 November Transport tariff per ton (excluding VAT) based on the diesel price of September 2013 (R / liter for Gauteng), for each product separately Percentage of tariff that reflects diesel portion e.g. 28% of the tariff Should you require that the tariff be adjusted when the price of diesel change during the course of the Agreement, then please state how this will be applied. ArcelorMittal recommends that when the price of diesel change with 10% (increase or decrease), that the transport tariffs must then be adjusted. Please confirm or tender alternative Should your tariff change during the course of the Agreement due to changes in the price of diesel, then the adjusted tariff will be effective from the 1 st day of the month following the month during which the price of diesel changed. Please confirm your acceptance Escalation formula must be supplied please refer to clause 3.2 and also provide the fixed portion of your tariff together with your proposed annual escalation formula. This is the portion of the tariff that will not be adjusted during annual negotiations as it is expected of the transporter to take responsibility to also reduce their costs continuously A copy of your company s current Goods in Transit Insurance Cover. The current market price for scrap is R2, per ton and shavings is R2, per ton A copy of your company s BBBEE certificate must be submitted with your tender. If you do not submit a copy of your BBBEE certificate, your tender will be regarded as incomplete and invalid. Refer clause 17 of the Annexure B (Draft Agreement) Should your company not be registered as a Vendor with ArcelorMittal South Africa, then the following documents MUST be supplied with your Tender: (i) A Certified copy of your Company Registration Forms (CK1 / CK2) and/or Certificate of Incorporation (CM1/ CM29/CM9 (name change), CM46). 5

6 (ii) A valid, original and/or certified copies of your company s Tax Clearance Certificate (iii) A valid, original and/or certified copies of your company s VAT Registration Certificate. (iv) A Registration Certification of the Compensation Commissioner or proof of latest payment to the Compensation Commissioner Tenderers are requested to confirm their acceptance of the Draft Agreement Annexure B Should no objections or alternatives be offered by a Tenderer, the Draft Agreement will serve as the Final Agreement between the parties Tenderers are requested to supply any other information that is relevant to this Enquiry. 3. TARIFFS Tariffs tendered for services should exclude VAT. The tenderer must calculate VAT in accordance to relevant statutory provision and indicate it separately on its invoices to ArcelorMittal Invoices Tax invoices for services rendered submitted to ArcelorMittal for payment shall indicate the VAT payable separately (if applicable). ArcelorMittal shall make payment of VAT to the Tenderer simultaneously with the payment for the relevant services. In all instances tax invoices shall be submitted and shall include the Tenderer s VAT registration number. Invoices rendered for payment shall, where applicable, be adjusted accordingly Price adjustment (Escalation) ArcelorMittal shall give preference to fixed Tender prices where the tariffs of the contract shall remain fixed for the full duration of the contract. However, in order to achieve a win-win situation between the successful Tenderer and ArcelorMittal, the parties will re-negotiate the tariff on an annual basis should the term of the Agreement be extended Tenderers are therefore requested to submit their escalation formula as part of their tender. Elements that will be used as guidelines during the negotiations will include, but will not be limited to: (a) A fixed portion of at least 20% (twenty percent). (b) Applicable Indices e.g. (Seifsa). 4. PAYMENT 4.1 Tenderers shall give complete detail as to whom, when and how payment has to be effected, namely: tenderer s full name, address, contact person and fax number; banker s full name, account number, address, contact person and fax number; by electronic fund transfer (EFT). 6

7 5 DETAILS CONFIDENTIAL The Tenderer (whether his Tender is accepted or not) shall treat all details in this Enquiry document and his Tender as private and confidential. ArcelorMittal will likewise treat details of the Tenderer s proposals as private and confidential and no information contained in a Tender will be disclosed to third parties. Except as required by law, the parties shall keep confidential, both during the term of the agreement and after its termination, all information relating to the other party procured in terms of the Agreement including, e.g. all processes, methods and techniques, manufacturing, software specification, computer systems and other confidential information in any media used by or the property of the other party and shall make use of such information only for the purposes of the Agreement. 6. DURATION The Agreement(s) tendered for shall be for a period of 3 years and shall commence 1 November 2013 until 31 October

8 PART 2 - SPECIFICATIONS 7. DESCRIPTING OF THE MATERIAL TO BE TRANSPORTED 7.1. Shavings 60 tons per month from Steel forge. Pretoria Works Shavings description Material: Loose machine shop shavings Truck type: box trailer with high sides or back tipper Carrying capacity: tons truck Loading methods: buckets 7.1. Scrap total tonnages tons per month from Special Profiles, Pretoria Works, Scrap description Size: 1 meter pieces (fencing and windows frames) Truck type: box trailer with high sides or back tippers Carrying capacity: tons truck Loading Method: Overhead magnet crane 8. SCOPE OF WORK 8.1. Scope The Successful Tenderer shall be responsible for the Road transport of scrap from Special Profile and shavings from steel forge in Pretoria Works to Vereeniging Vaal Works. Covering of the product with tarpaulin during transport is not essential. Should any spillage occurs during transport or whilst the Products are under the control of the Tenderer, then the Tenderer shall be responsible to insure that all spillage will be cleaned within a reasonable time at his own expense. Tenderers must give their commitment to this pre-requisite in writing in his tender document. 8

9 8.2 Loading and Off-loading Times Loading time at Special Profile Pretoria Works 24/7 Loading times at Steel forge plant Pretoria Works Monday to Friday: 06:00 13:00 No loading on weekends Off-loading time at Vereeniging Vaal Works 24/7 The times as reflected above shall apply to the Agreement unless otherwise agreed to between the parties. 9. SUCCESSFUL TENDERER S OBLIGATIONS Save as otherwise provided for, the successful Tenderer/s shall supply all necessary transport vehicles, labor, equipment, fuel and other facilities, necessary for the safe transportation by road of the said products between the said points. The drivers of the successful Tenderer/s shall be compelled to undergo Safety Training by ArcelorMittal and if so required, by the relevant Customer/s. It will be a pre-condition of the Agreement that the Successful Tenderer will supply all his drivers with PPE (Personal Protective Equipment), inter alia overall (one piece or pants and jacket, Preferably with some reflective strips sown onto it), hard-top hat, safety shoes and safety glasses that shall be worn at all times on the premises of ArcelorMittal and that of the Customers. 10. TONNAGES DESTINATION FROM PRETORIA TO PRODUCTS RATES PER TON ESTIMATED MONTHLY VOLUMES Vereeniging Vaal Works Shavings R 60 tons Vereeniging Vaal Works Scrap R tons The estimated tonnage is only given as a guide to indicate the extent of the work to be performed. The estimated quantity is given without any obligation on the part of ArcelorMittal and the quantity may vary from time to time in accordance with ArcelorMittal s requirements. 9

10 ANNEXURE A - OCCUPATIONAL HEALTH AND SAFETY ACT, ACT NO 85 OF 1993 This Annexure is incorporated in and forms part of the Conditions of the agreement, setting out the arrangements and procedures agreed to in order to ensure that the Tenderer complies with the Occupational Health and Safety Act, Act No 85 of 1993, (herein referred to as the Act) as amended from time to time. 1 Should the Chief Inspector give a direction in terms of section 7 of the Act to the Tenderer to prepare a health and safety policy as contemplated in that section, the Tenderer shall within 30 days from the date of Instructions forward a copy of such a policy document to ArcelorMittal and hereby undertakes to display a copy as contemplated in section 7(3) of the Act. 2 The Tenderer shall throughout the duration of the Agreement, provide ArcelorMittal with the necessary information to enable ArcelorMittal to establish the Tenderer's compliance with the Act. 3 The Tenderer shall as far as is reasonably practicable comply with the following in the execution of this Agreement: (a) provide and maintain, systems of work, plant and machinery that are safe and without risks to health and safety; (b) institute precautionary measures necessary to eliminate or mitigate any hazard or potential hazard to the safety and health of employees, before resorting to protective equipment; (c) make arrangements to ensure the safety and absence of risks to health in connection with the production, processing, use, handling, storage and substances, where applicable; (d) establish the hazards to the health or safety of persons attached to any work which is performed in terms of this Agreement, any article or substance which is used, handled, stored. In any plant or any machinery which is used in the Agreement the Tenderer shall further establish precautionary measures to be taken in respect of such work, article, plant or machinery as is applicable in order to protect the health and safety of persons involved during the execution of the agreement. The Tenderer shall further provide the necessary means to apply such precautionary measures; (e) provide such information, instructions, training and supervision as may be necessary to ensure the health and safety of his'-, ArcelorMittal's-, and any sub- Tenderer's employees involved during the execution of the agreement; (f) not permit any employee to do any work or to produce, process, use, handle, store or substance, where applicable, nor to operate any plant or machinery, unless the necessary precautionary measures contemplated in clause 3 of this Annexure or prescribed by the Chief Inspector, have been taken; (g) implement all the necessary measures to ensure that the requirements of the Act are complied with by every person in his employment or on site of the contract works where plant or machinery is used; (h) enforce such measures as may be necessary, in the promotion of health and safety; 10

11 (i) ensure that work is performed and that plant, machinery or equipment is used under the general supervision of a person trained to understand the hazards associated with it and who have the authority to ensure that precautionary measures taken by ArcelorMittal and the Tenderer are implemented; (j) ensure that all employees are informed regarding the scope of their authority in the execution of the Agreement and in terms of the Act; (k) execute the Agreement in such a manner as to ensure that no person other than those in his or her employment who may be directly affected by the Tenderer's activities, is exposed to hazards to health and safety; (l) ensure that nothing about the manner in which any plant, article, machinery or equipment for use at ArcelorMittal or on ArcelorMittal's premises is erected or installed makes it unsafe or creates a risk to health and safety when properly used; (m) ensure that every employee is conversant with the hazards to such employee's health and safety attached to the work to be performed at ArcelorMittal, as well as with the precautionary measures which should be taken and observed in respect to those hazards; (n) inform ArcelorMittal beforehand of any inspections, investigations or formal inquiries of which he has been notified by an inspector in terms of the Act and of any application for exemption made by him in terms of the Act; (o) inform ArcelorMittal of the occurrence of an incident in the work place or section of the work place where the Tenderer is performing work in terms of the Agreement. 4 The Tenderer shall ensure that its employees and any sub-tenderer's employees comply with the following: (a) take reasonable care for the health and safety of any employee and of other persons who may be affected by the employee's acts or omissions; (b) co-operate with ArcelorMittal or any person designated for this purpose by ArcelorMittal to enable ArcelorMittal to comply with any obligation or requirement to be performed or complied with in terms of the Act; (c) carry out any lawful order given to him or her and obey the health and safety rules and procedures laid down by ArcelorMittal or any person authorised thereto by ArcelorMittal or the Tenderer in the interest of health and safety; (d) if any situation which is unsafe or unhealthy comes to the employee's attention, as soon as reasonably practicable, report such situation to the Tenderer as well as to ArcelorMittal; (e) if an employee is involved in any accident which may affect his or her health or which has caused an injury to him or her, report such incident to the Tenderer as well as ArcelorMittal or anyone authorised thereto by ArcelorMittal as soon as reasonably practicable; (f) not to intentionally or recklessly interfere with, damage or misuse anything which is provided for in the interest of promoting health or safety. 11

12 5 The Tenderer hereby confirms that its Chief Executive Officer, as defined in the Act, has as far as is reasonably practicable ensured that the duties of the Tenderer in the execution of the Agreement and as contemplated in the Act, have been properly discharged. 6 If the number of employees employed by the Tenderer in terms of the Agreement exceeds 20 (twenty), the Tenderer shall within 14 (fourteen) days of the commencement of the Agreement provide ArcelorMittal with full particulars of the safety representatives at the Contract works. The Tenderer shall simultaneously confirm that it complies with section 17 (2) of the Act in the appointment of the safety representatives and that such health and safety representatives received the necessary facilities, assistance and training to fulfill their duties and functions as health and safety representatives. 7 If two or more health and safety representatives are involved in the work covered by the Agreement, the Tenderer shall, within 7 (seven) days from the date of a meeting between such health and safety representatives, send a copy of the minutes of such a meeting, as well as a copy of any recommendation made by the Health and Safety Committee to ArcelorMittal. 8 The Tenderer shall not make any deduction from any employee's remuneration- or require- or permit any employee to contribute towards any payment to him or her or any other person in respect of anything which the Tenderer is in terms of this Agreement, or in terms of the Act required to provide or to do in the interest of the health and safety of any employee covered by the Agreement. 9 The Tenderer shall immediately report to ArcelorMittal any incidents occurring at the place or places where the Tenderer performs any work in terms of the Agreement, in which or in consequence of which: (a) any person dies, becomes unconscious, suffers the loss of a limb or part of a limb or is otherwise injured or becomes ill to such a degree that he or she is likely either to die or to suffer a permanent physical defect or is likely to be unfit for a period of at least 14 (fourteen) days either to work or to continue with the activity for which such employee was employed or is usually employed; (b) an occurrence of catastrophic proportions, as defined in the Act resulting from the use of plant or machinery or from any activity in the performance of this Agreement has taken place; or (c) the health or safety of any person was endangered and where: (i) the uncontrolled release of any substance or pressure took place; (ii) machinery or any part thereof fractured or failed, resulting in flying, falling or uncontrolled moving objects; or (iii) machinery ran out of control. 10 The Tenderer or any of the Tenderer's employees shall not without the consent of an inspector disturb the site at which any incident occurred in which a person died or was injured to such an extent that that person is likely to die or suffer the loss of a limb or part of a limb, provided that such action as is necessary may be taken to prevent a further incident, or to remove the injured or dead or to rescue a person from danger. 12

13 11 The Tenderer shall in no way whatsoever victimise any of its employees because the Tenderer suspects or believes, whether or not the suspicion or belief is justified or correct, that one of his employees has given information to ArcelorMittal in respect of any matter concerning the health and safety of employees. 12 If an inspector of the Department of Labour wishes to perform any of his or her duties in terms of the Act at the Contract works, the Tenderer shall at all times provide such facilities as are reasonably required by the inspector to enable him or her and his or her assistant (if any) to perform effectively and safely his or her function under the Act. 13 The Tenderer or any of its employees shall not interfere with or remove any blocking, bar, barricade or fence placed on the instruction of an inspector in terms of the Act. 14 The Tenderer shall forthwith bring to the attention of ArcelorMittal the contents of any prohibition, direction or notice given by an inspector to the Tenderer or a sub- Tenderer or any of the Tenderer's or sub-tenderer's employees in terms of the Act. 15 The Tenderer shall fully co-operate in respect of any investigation or inquiry by an inspector and provide all necessary assistance, as envisaged in section 34 of the Act in the event of such an inspector investigating or inquiring into any matter related to the Tenderer's or sub-tenderer's execution of the Agreement. 16 The Tenderer shall not disclose any information concerning the affairs of ArcelorMittal without the prior approval of ArcelorMittal, which shall not be unreasonably withheld. 17 The Tenderer shall not: (a) in any record, application, statement or other document, referred to in the Act, wilfully furnish information or make a statement which is false in any material respect; (b) hinder or obstruct an inspector in the performance of his or her functions; (c) refuse or fail to comply to the best of his or her ability, with any requirement or request made by an inspector in terms of the Act; (d) refuse or fail to answer to the best of his or her ability to any question which an inspector in the performance of his or her functions in terms of the Act, put to him or her; (e) give himself out as an inspector; (f) tamper with or discourage, threaten, deceive or in any way unduly influence any person with regard to evidence to be given in respect of any investigation in terms of the Act; (g) prejudice, influence or anticipate the proceedings of any finding or inquiry in terms of the Act; (h) tamper with or misuse any safety equipment installed or provided to any person by ArcelorMittal or the Tenderer; 13

14 (i) fail to use safety equipment at any work place in terms of the Agreement or in the cause of his or her employment or in connection with the use of plant or machinery; (j) willfully or recklessly do anything at a work place in connection with the use of plant or machinery in terms of the Agreement which shall threaten the health or safety of any person. 14