Clarification Day 2 - Final

Outsourcing of IT
Infrastructure Services
(CORP 2821)
Clarification Session
12 December 2013
This presentation is used as an aid to Tenderers in responding to CORP 2821 and the
information in it is provided for information and clarification purposes only. In preparation
of this presentation certain information relating to tender CORP 2821 was used and
Eskom will not accept any liability or responsibility whatsoever, if any such information is
incomplete, inaccurate or misleading in any way or for any loss or damage that may
arise from reliance by Tenderers on such information contained in the presentation. Any
conflict that may exist between the information contained in the presentation and tender
CORP 2821, the tender CORP 2821 shall take precedence.
This presentation is an illustration and summary of the RFP. In the event of conflict, the RFP shall take precedence. Eskom Holdings SOC Limited, Copyright 2013
Clarification Presentations Day 2
12 December 2013
Legal
Commercial
SHE,
Quality
and
SD&L
Closing
Time
Agenda
Presented by
08:00
Registration
09:00
Safety and Evacuation
09:10
MSA and Consequence Management
Justin Cornish
09:45
Human Resources
Justin Cornish
10:00
Technical Evaluation and Deliverables
Stacy McTavish
10:45
BREAK
11:00
Commercial response and Pricing Workbook
Dinesh Dheda
11:45
Safety
Fundisa Dangazele
12:30
Quality
Tshilidzi Dau
13:15
LUNCH
14:15
SD&L
Ishmael Modiko
15:00
Governance Bodies
Petru Swanepoel
15:15
Data Room Rules
Petru Swanepoel
15:30
Closing
Sal Laher
1 the RFP shall take precedence. Eskom Holdings SOC Limited, Copyright 2013
This presentation is an illustration and summary of the RFP. In the event of conflict,
Contents

Human Resources
Commercial Response and Pricing Workbook
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
MSA: The Fundamental Structural Problem
TERMS AND CONDITIONS

Term
Services
SCHEDULES
Third Party Contracts

Service Levels
Definitions
Change Management
Third Party Cooperation
Services Description / Scope
Human Resources
Charges
Customer Responsibilities
Service Levels
Proprietary Rights
Charges
Governance and Change Management
Audit
Facilities
Data & Reports
Customer Responsibilities
Confidentiality & Security

Third Party Contracts
Representations & Warranties
Dispute Resolution
Termination Assistance
Termination
Human Resources
Indemnities
Security
Liability
Transition & Transformation
Boilerplate
Exit Management
TERMS
AND
CONDITIONS
Eskom Infrastructure Outsourcing MSA Structure
EXIT MANAGEMENT
TRANSITION
PRICING
GOVERNANCE
AND
DEMAND
MANAGEMENT
The legal terms. Can be

kept in the drawer unless
there is a problem
The deal definitional
Schedules. Define and
protect value in the deal
and provide the basis
from which evolution
and change is made
TERMS
AND
CONDITIONS
The Eskom Infrastructure Outsourcing MSA
The standby
Schedules
not required other than
for specific purposes.
EXIT MANAGEMENT
PRICING
GOVERNANCE
AND
DEMAND
MANAGEMENT
TRANSITION
The relationship tool

for managing the
ongoing contract as it
evolves over time
The transient
Schedules. Required
for specific periods and
purpose and end once
the purpose is fulfilled
Consequence Management
Performance
Standards
Services
Levels
KPIs
Deliverables
Qualitative and
Quantitative
Measures
Service Credit Methodology

Calculation: SC=WFxPLMxCLFxAt Risk Amount
Service
Level
1
Weighting
Factor (WF)
/ Multiplier
2%
2%
...
2%
...
2%
...
2%
...
...
At Risk Capped at
Amount: 200% of 15%
15% of
Annual
Charges
Consecutive Failure
Performance Level Multiplier (PLM)
Multiplier (CFM)
Required / Target Level to Defective /
2 consecutive failures - x2
3 or more consecutive
Lower Bound Level - x1
Defective / Lower Bound Level to Material failures - x4
Default / Critical Level - x1.5
2 or more below Material
Below Material Defau lt / Critical Level Default / Critical LDs /
x2
Step In / Termination
Critical Default - LDs / Step In /
Termination
Deliverable Credits and SD&L Credits

Deliverable Credits
Project
Milestone Weighting Calculation
1
2%
DC = WF x Project
Milestone Payment
At Risk Amount - 15% of
Monthly charges of project
SD&L Credits
Delay in Date for
Achieving Threshold
First 60 days
Credit /Remedy
1% Monthly Charges per
day of delay
Second 60 Days

day of delay
Third 60 days

day of delay
Further delay
Step In / Termination
Consequence Management: Change and

Exceptions
Types of Change
Types of Change:
Changing Weighting Factors

Modifying KPI / Service Level
Designations
Excused Events
Relief against Service Credits

Prescribed list of events
Subject to rules and process
No grace period for Service Credits
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
HR Section 197 on entry

S197 will apply on commencement of the Services following Transition
Employee terms and conditions will be provided to bidders during RFP process
Employees
falling within
the scope of
services to
be automatically
transferred
Information and consultation process prior

to transfer
Collaborative approach to ensure smooth
transition
Accrued and unpaid rights to
severance/leave etc.
Values to be agreed and set out in contract
Accrued rights to transfer in full
Transferred employees not to be dismissed /
retrenched for 12 months after
commencement of the services
Successor
Supplier:
Required
to propose
intended
approach
to transfer
employees
Pensions: Eskom will provide pension details - Supplier to confirm pension

arrangements that will apply to transferring employees
HR Section 197 on exit
S197 will apply on exit from the Agreement (in whole or in part)
Incumbent
Supplier
Transferring
Employees
Eskom will work with outgoing supplier and

incoming supplier to assess employee needs
Supplier expected to staff appropriately over
life of contract to mitigate risks
of large number of unwanted Employees.
Restriction on amendments to Employee
terms and conditions 12 months prior to
Successor
expiry or upon notice of expiry of the
Supplier
contract
Contents
Human Resources
Technical Evaluation
Technical Deliverables

Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
Technical evaluation consists of 2 steps

Detailed on
next pages
1
Basic
compliance
(e.g.,
deliverables)
Evaluation
of technical
profile
Minimal
requirements to
pass
Proven track
record in South
Africa
Proven track
record in IT
infrastructure
outsourcing
Experience in IT
infrastructure
outsourcing
Threshold of
80% for
passing
functional
evaluation
2
Evaluation of Technical,
Quality and SD&L
20%
SD&L
10%
Quality
70%
Technical
Financial
analysis
65%
Outsourcing scope
5%
Transition and
transformation plan
30%
MSA
No individual thresholds of criteria / sub-criteria; objective safety requirements

enforced during negotiation
Evaluation of technical profile as minimal

requirements to pass (1/2)
Category
Criteria
IT track record in
South Africa
Does the tenderer1 have local office based in South Africa and has managed in
the year 2012 >= 100 locally employed FTEs with South African nationality
(working in IT related services) in South Africa?
Did the tenderer1 serve between years 2008 and 2013 at least 2 customers
(globally, incl. South Africa) with each having >=10'000 seats for end user
services as per the current scope of work requested by Eskom and as main
outsourcing service provider for the desktop / end user services tower?
Did the tenderer1 serve between the years 2008 and 2013 at least 2
Track record of IT
infrastructure
outsourcing
customers (globally, incl. South Africa) with each having >=13'500 active
LAN ports (excl. DC LAN) supported as per the current Networking
Services (LAN / WAN field support) scope of work requested by Eskom and
as main outsourcing service provider for the Networking Services tower?
Did the tenderer1 serve between the years 2008 and 2013 at least 2
customers (globally, incl. South Africa) with each having >=10'000 seats on
the service desk infrastructure tower as per the current scope of work
requested by Eskom and as main outsourcing service provider for the service
desk tower?
1 or it's holding company having a subsidiary, or any one of the Joint Venture partners
Evaluation of technical profile as minimal

requirements to pass (2/2)
Category
Criteria
Did the tenderer1 serve between the years 2008 and 2013 at least 2 customers
(globally, incl. South Africa) with each supporting, managing and maintaining
>=1'300 servers (virtual and physical) as per the current scope of work
requested by Eskom and as main outsourcing service provider for the servers
support tower?
Track record of IT
infrastructure
outsourcing
Did the tenderer1 manage >=500 outsourced FTEs (in IT outsourcing) during
Experience in IT
infrastructure
outsourcing
each of the years 2008-2012?

Did the tenderer1 manage >=50 outsourced FTEs (in IT infrastructure end
user services tower as per the current scope of work requested by Eskom)
during each of the years 2008-2012?
Did the tenderer1 manage >=50 outsourced FTEs (in IT infrastructure
Service Desk tower as per the current scope of work requested by Eskom)
Network Services / LAN tower as per the current scope of work requested by
Eskom) during each of the years 2008-2012?
Servers Support tower as per the current scope of work requested by Eskom)
Was the tenderer (excl. subcontractors) in 2012 or 2013 certified in ITIL V2 or
higher and in 1 of the following industry certifications: ISO20000 or ISO27001?
1 or it's holding company having a subsidiary, or any one of the Joint Venture partners
Evaluation of scope and transition /

transformation plan as scored items
Questions/evaluation criteria
Evidence provided
by tenderer
Did the tenderer submit a transformation proposal that included Transformation plan
Transition and
transformation
plan
a. Transformation activities including timing

b. Estimations of potential savings and necessary investments
for Eskom
c. Conditions that need to materialise to realise savings
Did the tenderer submit a transition plan that included

a. Transition activities broken in different workstreams over
a defined span of time (in accordance with T-Systems
disengagement plan)
b. Estimations on effort for different workstreams
c. Conditions that need to materialise to realise transition
To which degree does the tenderer accept the outsourcing

Scope
scope that has been described in the different service

catalogues?
deliverable
Transition plan
deliverable
Mark-ups of service
catalogues
2 Markup of the Scope

ILLUSTRATIVE
Sub-category
Number
Weighting of in service Sub-weight
Agreement
sub-category catalogue of item
1.
n.a.
Introduction
2.1 Equipment
n.a.
maintenance
and support
Different sub-criteria
weightings fixed, but
not communicated
by Eskom
Comment
1.
n.a.
2.1.1
n.a.
2.1.2
n.a.
2.1.3
n.a.
2.1.4
n.a.
2.1.5
n.a.
2.1.6
n.a.
2.1.7
n.a.
2.1.8
n.a.
Mark-up each
clause in the
service catalogue
User Selects:
Agree without comment
Partially agree with comment
Disagree with comment
100%
50%
0%
Contents
Human Resources
Technical Evaluation
Technical Deliverables

Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
There are 10 technical deliverables (on top of other contract

deliverables, such as price workbook with quotes) (1/2)
Category
Markups on
Eskom
RFP
Deliverable
Mark-up of
service
catalogues
Mark-up of MSA/
deal principles
Description of documents to be delivered (incl. mandatory elements)
Agreement with no comments, agreement with comments or refusal with comments for
Services per tower
KPIs and SLAs per tower
Pricing methodology
Candidate to respond for each deal principle acceptance, acceptance with comments or
refusal with comments
Outsourcing track record in South Africa (signed by CEO of Tenderer)

Number of locally employed FTEs with South African nationality in 2012
Description of work focus (incl. detailed description of supported IT services)
Option to receive SA identity numbers of all FTEs during negotiation phase
For each of the IT infrastructure towers 2 signed reference cases with detailed
description of provided services (incl. duration of contract) and with contacts of
customers of Tenderer that can be contacted containing information on
Number of supported seats (for End User Services and Service Desk towers)
Number of supported active LAN ports (Network Services)
Number of supported servers (Servers Support)
Experience in IT infrastructure outsourcing (signed by CEO of Tenderer)

Number of outsourced FTE in total for each year from 2008 to 2012
Number of outsourced FTEs per IT infrastructure technology tower (as per outsourcing
scope defined by Eskom) for each year from 2008 to 2012
Option to receive identity numbers and work description of all mentioned FTEs during
negotiation phase
Proof of industry certifications ISO20000, ITIL V2 or higher and ISO27001 (copy of certificates)
Proof of outsourcing track record

in South Africa
Qualifications
of tenderer
Mandatory
template
from Eskom
Proven track
record in IT
infrastructure
outsourcing
Experience in IT
infrastructure
outsourcing
Excluding other (non-technical) deliverables such as skills development matrix, safety documents etc.
There are 10 technical deliverables (on top of other contract

deliverables, such as price workbook with quotes) (2/2)
Category
Deliverable
Description of documents to be delivered (incl. mandatory elements)
Transition plan including approach to transition, roadmap, HR related issues (e.g.,

culture change, how to deal with transfers from section 197), and impact on application
landscape
Planned support and steps for termination after contract termination
Service transformation plan including approach, roadmap 2015 - 2019, baseline, and target
state
Innovation plan (e.g., ideas for remote provisioning, remote desktop support solutions)
Estimates of potential savings and necessary investments from Eskom
Conditions that need to happen to realise savings
Ideas of how to drive future innovation (e.g., governance ideas, benefit sharing, etc.)
incl. conditions of what needs to happen to drive these ideas
Matrix of all relevant risks (impact vs. likelihood) for transaction and set of proposed
mitigation measures for identified risks
Transition plan
Disengagement
plan
Proposals
from tenderer
Service
transformation
plan
Ideas for how to
drive innovation
Risk management
plan
Mandatory
template
from Eskom
Excluding other (non-technical) deliverables such as skills development matrix, safety documents etc.
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
Schedule B: Commercial Response

(mandatory returnable)
Detail cost sheet completion (price workbook)
Rate of Exchange fluctuations- Eskom prefers a fixed price

(in ZAR)
Annual adjustments - Statistics South Africa year on year

CPI increase
Submit an intention to provide a Performance Bond or

Parent Company Guarantee.
Eskom Travel and Subsistence (T&S) Allowance guidelines

applicable to Suppliers
Additional Information Requirements - prior to the final

submission date.
Sign-off by duly authorised person before submission
Summary cost excluding VAT (in ZAR) cut & paste from
Price Workbook
Overview of commercial returnables (1/2)

The tenderer must complete and return the documents below. Failure to submit items marked under Basic Compliance
will result in tender being considered non-responsive. Failure to submit items marked under File A or File B may result in
tender failing evaluation.
No. Returnable Document/ Schedule
File File Basic

Returnable Template Tenderers
A
B
Compliance in the RFP*
tick box
1 The Cover Page to this tender
Cover Page
2 Acknowledgement Form Invitation to Tender

(form to be returned within 5 business days of the
RFP issue date)
Section 2
3 Authority to Submit a Tender
Appendix B
4 Registration certificates for Company/

organization (CIPC for South African companies)
To be provided by
tenderer
5 Declaration Regarding Fair Bidding Practices
Appendix B
6 Schedule of Proposed Sub Consultants (only if

applicable)
Appendix B
7 Form of intent to provide a Parent Company

Guarantee (only if applicable)
Appendix B
8 Form of Intent to Provide a Performance Bond

(only if applicable)
Appendix B
9 A valid B-BBEE Verification Certificate from an

accredited Verification Agency with the score card
To be provided by
tenderer
Overview of commercial returnables (2/2)

The tenderer must complete and return the documents below. Failure to submit items marked under Basic Compliance
will result in tender being considered non-responsive. Failure to submit items marked under File A or File B may result in
tender failing evaluation.
No. Returnable Document/ Schedule
File File Basic

Returnable Template Tenderers
A
B
Compliance in the RFP*
tick box
10 Preference Points Claim Form
Appendix E
11 Original SARS Tax Clearance Certificate
To be provided by
tenderer
12 Certificate of Compliance with the Employment

Equity Act
To be provided by
tenderer
13 Latest signed and audited financial statements

(and for the past three years)
To be provided by
tenderer
14 Suppliers Declaration of Interest
Appendix D
15 Commercial Response
Appendix B
16 Vendor details
Appendix B
17 Pricing Workbook
(Electronic and Printed copy required)
Appendix A
18 Description of overall plans and approach with

respect to employment of Transferring Employees
To be provided by
tenderer
Commercial Price Workbook

(instructions)
Tenderer to fill out all excel fields of tan/orange colour in all worksheets of this document
Complete pricing information to be provided, empty excel fields can lead to disqualification of
tenderer (some validation built in to workbook)
No changes in any other fields allowed

All quoted prices to be filled out in ZAR excluding VAT
All quoted prices to be stated in CPI free values
All price quotes to be provided for services and not units (i.e. total support price for X SEATs), also
the quotes for volumes that vary from expected number of units (Price bands e.g. 30-40%) (the only
exception is for standby services for end user services, Resource rates)
A volume discount (on a per unit base) is expected to be included in the proposed pricing per service
Definitions and background information on the services can be found in the service catalogues of the
respective infrastructure tower (cross-functional tower activities to be included in pricing of other
towers)
Quoted prices need to reflect service catalogue proposal of Eskom as is (independent of acceptance
of services on the MSA markup and SLAs marked up by tenderer)
Tenderer to state all assumptions for pricing in the worksheet "Assumptions (to be minimised by
requesting clarification questions before 31 Jan 2014)
NB. 2015 Transition cost should be counted once only

Termination charge sheet response is required as basis for negotiation
Commercial Price Workbook

(mandatory returnable)
Appendix A : Price Workbook

Outsourcing IT Infrastructure Services
I Pricing Servers Support
II Pricing Service Desk
III Pricing End User Services
IV Pricing Network Services
V Summary of Pricing
VI Resource rate card
VII Termination rate card
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
Process Flow of QM-58 Specification

General requirements
Quality management
policy (3.1.1)
Implentation stage
(3.1.2)
Supplier quality
performance and
monitoring stage (3.6)
E-quality tool achiever

plus (3.7)
Quality management in
engineering (3.1.3)
Contract award and

quality control stage (3.5)
Payment and delivery

(3.8)
Quality management in
fabrication and
construction (3.1.4)
Contract award stage

(3.4)
Tender submission stage

(3.2)
Tender evaluation and

negotiation stage (3.3)
30
30
Quality Documentation with Tender

The supplier shall submit the following quality documentation with tender
1. Signed & completed form A
2. Signed & completed form B
3. A copy of the CV / Resume of the contractor's Quality Management Representative
4. ISO 9001:2008 certification covering the intended scope of supply OR objective evidence of a Quality
Management System that complies with ISO 9001:2008 requirements (copy of the QMS manual
including the six mandatory procedures) that covers the intended scope of supply
5. A signed copy (by duly authorised representative) of the latest structure/ organogram of the
Organization featuring quality. This structure should indicate to whom the organizations quality
management representative reports to
6. Information on similar IT infrastructure outsourcing work performed (at most within the last two years)
(Document with contract periods and customer details including scope)
7. A sample of a completed Non-conformance report shall be attached to tender. (NCR)
8. A sample of a completed corrective action report. (CA)
9. A sample of a completed Preventative action report. (PA)
10. A sample of an audit report on a sub-Contractor/Supplier
11. A sample of an Audit Schedule on a Sub-Contractor/Supplier
12. The contractor shall attach a copy of their procedure/Process for the selection and control of suppliers.
13. A Copy of the organizations procedure for reviewing Supplier Nonconformities
14. The contractor shall attach a draft Programme Statement covering QM58 and ISO10005 requirements
for Quality Plans (refer sheet2 CQP guide)
15. QCP/ITPs (Inspection Test Plan) from a similar project or a draft for the scope of supply that covers
Witness and Hold Points to "Customer" (Refer sheet 3 ITP guide)
31
31
Evaluation Criteria and Weighting (Scorecard)

QM-58 Clause
3.2.1.5.
3.2.1.1./2.
Assorted
Description of Quality Returnable

Section A
ISO 9001:2008 certification covering the intended scope of supply or objective
evidence of a Quality Management System that complies with ISO 9001:2008
requirements
Section B
Form A and Form B
Section C
Copy of Quality Management CV
Organogram of the Organization featuring quality
Information on similar IT infrastructure outsourcing work performed
A sample of a completed Non-conformance report shall be attached to tender
(NCR)
A sample of a completed corrective action report. (CA)
A sample of a completed Preventative action report. (PA)
A sample of an audit report on a sub-Contractor/Supplier
A sample of an Audit Schedule on a Sub-Contractor/Supplier
The contractor shall attach a copy of their procedure/Process for the selection
and control of suppliers
A Copy of the organizations procedure for reviewing Supplier Nonconformities
Weight
30%
10%
25%
3.2.1.8(a).
Section D
Draft Programme Statement
25%
3.2.1.8(b).
Section E
Inspection Test Plan
10%
SOURCE: Source
32
Summary of Procurement Quality Assurance

Process
1. Supplier submits Quality documentation with a tender
2. Quality contributes 10% of total technical weight but has no threshold
3. Supplier Quality documentation submitted with tender complies with
QM-58 requirements
4. Quality evaluation report recommends that based on tender evaluation
report that supplier MAY BE CONSIDERED for awarding of contract
5. Eskom Procurement Quality Assurance organize a contract hand over
meeting with supplier Quality Management Representative and
Eskom stakeholders
6. Eskom Quality advisor ensures that Supplier QMR commits to the
submission of a CQP & ITP for Eskom approval
7. CQP & ITP is implemented by Supplier and monitored by Eskom for
the duration of the contract
33
13
33
Example of Quality Documentation File
Index page of contents
Quality
Documentation
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Form A
Form B
CV of QMR
ISO 9001 Certificate
Organizational Structure
Etc.
Etc.
Etc.
Etc.
Etc
Etc.
Etc.
Etc.
34
34
Eskom System Assurance & Supplier Audits
Eskom reserves the rights to

Perform supplier technical and quality capability
assessments on all potential suppliers in order to
determine if all quality and technical risks associated with
a specific contract, process, commodity, project or service
comply to requirements
Perform audits on all suppliers, contractors and
subcontractors who have been awarded a contract. These
post contract audits shall be carried out, in accordance
with Eskom's supplier, contractor audit schedule
35
35
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
ZERO HARM VALUE
Eskom will strive to ensure that zero harm befalls its employees, contractors,
the public and the natural environment
Tenderer needs to
meet Eskoms
objective SHE
requirements in
order for a contract
to be awarded
Background Information
Eskom has embarked on a drive to create and sustain a

world-class culture and standardisation within Eskom
Commercial Process regarding Safety, Health and the
Environment
As part of Eskoms Supplier Management System, it is
now a requirement for all suppliers who wish to
undertake work for Eskom to undergo an occupational
safety, health and environment (SHE) evaluation process
This process assists Eskom to determine whether
suppliers take reasonably practicable steps to apply safe
systems of work; comply with the legislative and Eskomspecific requirements and addresses SHE adequately
SHE Tender Returnable Annexure B
Annexure B
Acknowledgement
form signed by
Management of
the Company
(CEO/MD and
witnessed - 32726 Annexure B)
The acknowledgement form for Eskom rules and

requirements
32 - 727 Eskom Safety, Health, Environmental and

Quality Policy
32 - 421 Eskom Cardinal Rules

32-95 Eskom Incident Management Procedure
32-36 Eskom procedure on Smoking
SHE Tender Returnable Other Returnables
Annexure C
SHE Tender
Returnable
Acknowledgement form signed by Management of the

Company (CEO/MD and witnessed - 32-726
Annexure B)
A valid letter of Good Standing COID

(Compensation for Occupational Injuries Diseases)
OR Letter of Insurance (not less than R500,000) OR
Proof of Application (for either)
Tenderer SHEQ Policy signed by the CEO of the

Company
Risk Assessment for the scope of work to be

performed by the supplier (list of risks and mitigating
factors)
Submit Medical Surveillance Procedure
Company emergency procedure and emergency

contact numbers
Incident Management Procedure to be submitted, also

covering the process stating clearly who to contact if a
Consultant gets injured on Eskom site/offices
SHE Tender Returnable Documents before

Contract Award
Compulsory
documents
to be
submitted
before
contract
award
Proof of employee Medical Surveillance Records

conducted by the Occupational Health Practitioner.
Buyer to check and confirm with SHE personnel
Proof of valid drivers licenses for employees that will

be performing the task at hand
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
We have a mandate to contribute positively to the

development of the country
Our mandate is to achieve maximum and

sustainable local development impact
through leveraging Eskoms procurement
spend in a manner that allows flexibility
within the business in order to accommodate
government local development initiatives
and policies
12/
SD&L evaluation criteria under functionality
The evaluation criteria seeks to increase SD&L evaluation

score allocation in the overall scoring and to ensure all
dimensions of local development are considered1:
20%
Local content (and subcontracting to local to site, BWO,

BYO, and BOs where applicable)
Skills development
Job creation (work opportunities)
1 B-BBEE Levels are not included in the SD&L Evaluation Criteria but are rather considered as part of the Price-Preference assessment.
12/
SD&L measures impact along these key

performance areas
Key performance areas
Definition
Skills development
Increasing the skill base (number and skill level) of

South African workers in areas relevant to the
energy sector and where there is a national scarcity
of skills
Local content
Utilisation of Eskom and suppliers spend to

develop South African based suppliers relevant to
the energy sector (focusing primarily on BBB-EE
Black Owned and youth owned suppliers)
Industrialisation
Utilisation of Eskom and suppliers spend to foster

the establishment of new competitive industries in
the energy sector
Employment and job

creation
Creation of new jobs by suppliers as a direct result

of Eskom business
Supplier development
Providing a platform to develop emerging suppliers,

and further contribution to local developmental
opportunities for national and international suppliers
12/
SD&L Localisation Compliance Matrix

Table 1: supplier development and localisation compliance matrix for suppliers and contractors
Criteria
Weight (%) Total target (%)
Local Content to South Africa

Local Content Local to Site
Procurement from BPLD
Procurement from BYO
Procurement from BWO
Procurement from BO
Skills Development
Total Score
25.00%
15.00%
Proposed target (%)
Total overall weighted score
100.00%
25.00%
0.00%
0.00%
10.00%
10.00%
10.00%
10.00%
10.00%
25.00%
30.00%
100.00%
Total Supplier Development and Localisation Score
0.00%
0.00%
0.00%
0.00%
0.00%
Table 2: skills development compliance matrix
Skill type (occupation)
Target number of
persons to be
OFO
trained (Local to
occupational
Weight (%) South Africa)
group
Proposed number
of persons to be
trained (Local to
South Africa)
Target number
of persons to
be trained
(Local to site)
Proposed number
of persons to be Total
trained (Local to weighted
site)
score
Desktop Technician
20.00%
448
0.00%
Data centre technician
30.00%
447
0.00%
Service desk support technician
15.00%
447
0.00%
Network Engineer
35.00%
300
0.00%
0.00%
100.00%
1,642
0.00%
Total
To be completed by Tendered
Number of jobs to be created as a result of this contract
Number of jobs to be retained as a result of this contract
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
Eskom IT governance landscape includes 11

governance processes
Management
level
Strategic
Involvement
Business
1
IT
Outsourcing partner
Strategic alignment
2 Continuous improvement
3 Contract management
4 Financial Management
5 Risk and compliance management
6 Disaster recovery
Tactical
7 Change Management
8
Service option and architecture
9 Demand and capacity management
Operational
10 Performance Measurement
11 Incident & problem management
Overview of Governance process structures (1/2)
Strategic
alignment
Continuous
Improvement
Description of process
Involved forums
Creating alignment between Group IT,
Executive Committee meetings
business needs and IT Outsource

Service Provider
Ensure and plan for service

improvements by designing/adapting
processes for continuous improvement
Service Management committee

Input to Executive Committee
meetings
3 Contract
management
Coordinate all commercial items through Contract Management Committee
4 Financial
management
Ensure billing is aligned to pricing &
Risk and
5 compliance
management
Ensure business continuity through
regularly monitoring the contract and

managing escalation and changes
volumes through monitoring cost trends
Service Management committee

constantly assessing risk landscape and Escalations to Executive
defining mitigating actions
Oversee disaster recovery through

6 Disaster recovery
Contract Management Committee

Update of billed services to SMC
planning and executing business

continuity measures
Committee meetings
Escalations to Service
Management committee
Overview of Governance process structures (2/2)
Change
7
Management
Manage and approve ICT changes
Change and Release Management
through monitoring, categorising and

preparing for changes
Committee
Review and manage changes to service Input for Contract Management

8
options (e.g. change of service level) and

architecture
Service option
and architecture
Demand and
9 capacity
management
Create demand forecast, ensure continu- Communication of demand
ed cost efficiency of given demand.

Prioritise projects and out-of-catalogue
requests
Ensure service delivery aligns with SLA

10
Performance
measurement
Incident &
11 problem
management
Committee
Ratify at Service Management
Committee
and trigger follow-up actions to address

identified issues
changes and forecast in SMC

Eskom internal meeting
SLA Performance Review Meeting

Feed into Service Credit process
and feedback to Service
Management Committee
Analyse the root causes of incidents and Weekly OMFs and Divisional OMC
escalate if necessary and then review
incident and problem model regularly
There are 6 major governance forums across 3

levels
Level
Eskom leadership
Governance forums1
Provider leadership
Executive Committee meetings
Strategic
CIO
Senior manager:
Service Management Committee

(SMC)
Monthly
Head of Service
Delivery
Contract Management Committee

(CMC)
Monthly
Key Account Manager
Change and Release management

committee
Senior Manager:
Service Delivery
SLA Performance Review

meetings
Operational
Quarterly
CEO / Managing Director
Tactical
Senior Manager:
Business Enablement
Frequency
Infrastructure
Operations Manager
Weekly
Change Manager
Monthly
Service Level Manager
Operational Management
Operational Management
Committee
(OMC)
Operational
Management
Committee (OMC)
Committee ( OMC/OMF)
Senior
Infrastructure
managers IM Operations
(Monthly)
Manager
(Weekly) Retained internal Eskom organization, ad hoc project
meetings and day-to-day work not included in overview
Service Delivery
Manager
Weekly /
Monthly
(divisional)
For all governance forums agenda, format, frequency

and leaders need to be clearly defined
Operational level
Tactical level
Strategic level
Management
mechanism
and governance forums
Executive
Committee
Meeting
Service
Management
Committee (SMC)
SLA Performance
Review meetings
Operational
Management
Committee
(OMC/OMF)
Lead
Quarterly
CIO
Monthly
Senior manager:
Infrastructure
services
Monthly
Senior manager:
Business
enablement
Provide oversight over IT change control requests and scheduling

Review / assess proposed changes to application / technology platforms
Evaluate and assess risks associated to changes
Ensure that the appropriate safeguarding mechanisms are included in all
proposed changes
Weekly
Senior
manager:
Service
delivery
Monthly
Infrastructure
operations
manager
Review SLA performance against SLA targets using SLA dashboard

Consider and confirm validity of performance explanations
Review and recommend appropriate actions to correct SLA
underperformance
Support operational benchmarking process
Ensure divisional service delivery

Address frequent operational challenges
Explore operational activities to improve day-to-day functioning
Monthly
(divisional)
OMF
Weekly
Senior manager IMs/

Infrastructure
operations
manager
Key topics (with different frequencies)
Ensure a healthy
relationship and on-going
strategic alignment between
parties
Approve / monitor
innovation plans
Ensure on-going and

effective execution of
Services contracted
between parties
Act as a sub-committee to
the SMC to co-ordinate and
control all changes
(additions, changes and
deletions) to the contract.
Contract
Management
Committee (CMC)
Change and
Release
Management
committee
Meeting
frequency
Objective
Manage / control changes

Safeguard Eskom from
disruptive changes that may
disrupt business continuity
Ensure delivery against

agreed Service Levels
Recommend remedial
actions to resolve any SLA
performance deficiencies
Committee ensures quality

delivery of both application
and infrastructure services
to the Eskom Divisions
Seeking to resolve any unresolved escalated issues

Ensure alignment between parties on business strategies
Regularly review, approve and monitor progress of vendors
transformation plans/ideas (e.g., approve business case presentations
of initiatives)
Address relationship related issues raised by both parties
Future roadmaps and innovation
Address escalations from operational forums
Ratify new services and removal of existing services
Ratify provider compliance with the SLA requirements for all services
Review and approve delegation of authority to various committees
Ratify annual price adjustments
Ensure that any changes to the contract are made correctly
Contractual changes are technically and financially evaluated and
accepted, thus enduring no legal compromise to the parties
Track the status of contractual changes
Agree on major changes to delivery model and outsourcing scope
Review annual market benchmarks against current service catalogue
Efficiency of the meetings to be consistently measured
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
Data room logistics (1/3)

Data room appointments can be made from Friday 13/12/2013
by sending a request to: dataroom2821@eskom.co.za
The data room will be available from Tuesday 17/12/2013 until
31/01/2014
Data room venue: The Core Boardroom, Megawatt Park,
C-block Ground Floor, Centre Core
Hours: 08:30 12:00 and again 13:00 16:00 on
Monday Fridays
Only day on 24 and 31 December (08:30 12:00)
No weekends, no public holidays

No questions and no discussions will be entertained
All questions and clarification requirements to be sent to the
Q&A e-mail address: corp2821@eskom.co.za
Maximum 3 people per company allowed in the data room
at a time
Maximum 2 consecutive sessions may be reserved at a time.
Only after these sessions have been used can another
reservation be made for another time slot in order to ensure all
tenderers have a fair opportunity to access the information
4 laptops available in the data room
One laptop can be occupied per tenderer / company

No copies, no photos, no files to be saved
All cell phones, memory sticks, cameras etc. will have to be
locked away in lockers provided
Cameras are installed in data room
Laptop USB ports are disabled
Tenderers are allowed to take notes
Paper and pens will be provided
No eating and or drinking will be allowed in the data room
Please be considerate and keep noise levels down
Contents

Human Resources
Quality
Safety
SD&L
Governance Bodies
Data Room Rules
Closing
Outsourcing of IT
(CORP 2821)
Clarification Session
12 December 2013

Clarification Day 2 - Final

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Outsourcing of IT

Clarification Presentations Day 2

Safety and Evacuation

MSA and Consequence Management

Technical Evaluation and Deliverables

Commercial response and Pricing Workbook

Data Room Rules

MSA and Consequence Management

MSA: The Fundamental Structural Problem

TERMS AND CONDITIONS

Third Party Contracts

Services Description / Scope

Governance and Change Management

Data & Reports

Confidentiality & Security

Eskom Infrastructure Outsourcing MSA Structure

The legal terms. Can be

The Eskom Infrastructure Outsourcing MSA

The relationship tool

Service Credit Methodology

Deliverable Credits and SD&L Credits

2% Monthly Charges per

3% Monthly Charges per

Consequence Management: Change and

Changing Weighting Factors

Relief against Service Credits

MSA and Consequence Management

HR Section 197 on entry

Information and consultation process prior

Pensions: Eskom will provide pension details - Supplier to confirm pension

HR Section 197 on exit

Eskom will work with outgoing supplier and

Commercial Response and Pricing Workbook

Technical evaluation consists of 2 steps

No individual thresholds of criteria / sub-criteria; objective safety requirements

Evaluation of technical profile as minimal

Evaluation of technical profile as minimal

each of the years 2008-2012?

Evaluation of scope and transition /

a. Transformation activities including timing

Did the tenderer submit a transition plan that included

To which degree does the tenderer accept the outsourcing

scope that has been described in the different service

2 Markup of the Scope

Commercial Response and Pricing Workbook

There are 10 technical deliverables (on top of other contract

Description of documents to be delivered (incl. mandatory elements)

Outsourcing track record in South Africa (signed by CEO of Tenderer)

Experience in IT infrastructure outsourcing (signed by CEO of Tenderer)

Proof of outsourcing track record

There are 10 technical deliverables (on top of other contract

Description of documents to be delivered (incl. mandatory elements)

Transition plan including approach to transition, roadmap, HR related issues (e.g.,

Planned support and steps for termination after contract termination

MSA and Consequence Management

Schedule B: Commercial Response

Detail cost sheet completion (price workbook)

Rate of Exchange fluctuations- Eskom prefers a fixed price

Annual adjustments - Statistics South Africa year on year

Submit an intention to provide a Performance Bond or

Eskom Travel and Subsistence (T&S) Allowance guidelines

Additional Information Requirements - prior to the final

Sign-off by duly authorised person before submission