RFP NUMBER: RAF/2014/00013 DESCRIPTION: APPOINTMENT OF A PANEL OF LEGAL COST CONSULTANTS FOR THE ROAD ACCIDENT FUND

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1 Panel of Legal Cost Consultants Questions and Answers RFP NUMBER: RAF/2014/00013 DESCRIPTION: APPOINTMENT OF A PANEL OF LEGAL COST CONSULTANTS FOR THE ROAD ACCIDENT FUND PUBLISH DATE: VALIDIY PERIOD: CLOSING DATE: CLOSING TIME: COMPULSORY BRIEFING SESSIONS BID RESPONSES MUST BE HAND DELIVERED / COURIERED TO: ATTENTION: 06 JUNE Days from the closing date 08 JULY :00 AM THE CLOSING TIME WILL BE AS PER THE CLOCK AT THE RAF RECEPTION AS PER RFP DOCUMENT Road Accident Fund (RAF) Head Office Eco Glades II Office Park, 420 Witch-Hazel Avenue CENTURION (at the reception) STEPHEN VAN HUYSSTEEN Question 1 If you are an attorney taxing bills and lodging claims against RAF, are you prevented from tendering for this panel? Will there a conflict of interest? Answer 1 Yes. SLA states as follows: ACTING AGAINST THE FUND 7.1. The Firm agrees that from the Effective Date, it shall not act in any way which may give rise to a conflict of interests in relation to the Fund or the Services to be rendered in terms of this Service Level Agreement From the Effective Date of this Service Level Agreement the Firm may not accept any instruction to attend to negotiations/settlements or taxation of the legal cost bills against the Fund, or in any way act against the Fund. Yes, there will be conflict of interest and attorneys who litigate against RAF shall not tender. Question 2 To prove presence in the province what is required? One or all of the proof? Answer 2 Only one of the methods of proof is required. One of the following is required: Lease agreement Rental agreement Municipality statement 1

2 Rental invoice Any other proof Question 3 What will the period of payment of invoices be? Answer 3 Invoices are paid within thirty (30) days of receipt of invoice. Question 4 Will there be a duplication of work as RAF has internal staff doing this work? Answer 4 There will be no duplication of work. Question 5 If you an attorney on the non practicing roll must you go onto the practicing roll? Answer 5 If you are a cost consultant that does not have Right of Appearance then you do not have to be on the practicing roll. Your CV must be submitted detailing your experience. Question 6 How will instructions be allocated when there is a panel of attorneys in place, and who will the panel of attorneys utilise to tax bills? Answer 6 The panel attorney must obtain consent to use a cost consultant from the panel of legal cost consultants. Question 7 A number of questions relating to the requirement for the submission of financial statements were received. These questions are reproduced and answered below: Our company was registered in early 2013 and has been in operation in excess of 1 year. We are currently in the process of having our audit completed. The requirements of the tender are for the submission of 3 year audited financial statements which, the bid document tells us, is compulsory. How will the RAF ensure that young up-and-coming companies will not be adversely affected by this requirement in light of the fact that the writer, the sole shareholder, has in excess of 17 years' experience in the practice of law, including the drafting of bills, objections thereto and appearing at taxations? Do you agree that the requirement of audited financial statements with a signed audit report in the case of a company is irrelevant, illogical and or arbitrary? The requirement adds nothing to the quality of the tender submissions and its only effect is to prevent companies with appropriately qualified employees from submitting compliant tenders? In fact, it works prevents otherwise compliant and competent from tendering? If you agree with the above, will the RAF designate the requirement as not mandatory? At the briefing session I posed the question to the presenter that as I am a sole proprietor, whether the documentation enclosed (i.e. profit and loss statement, trial balance and balance sheet documentation) would suffice when completing the tender documents. As I am neither a company nor registered close corporation, financial statements are not required by the South African Revenue Services. My accountant submits the documents aforementioned on a 2

3 yearly basis when completing my tax return. Please confirm that the submission of these documents is proper compliance with the requirements for the tendering process. Is there a need for a sole proprietor to submit audited financial statements or any other type of financial statement? (I see reference is only made to companies and CCs in the checklist) ANNEXURE C: para 13: Am I correct to include my annual financial statements for the last 3 years even though I am a sole proprietor and not a company? Answer 7 The requirement for three years financial statements signed by the auditor of a company is generally applicable. However, a close corporation should provide financial statements signed by the accounting officer. A sole proprietor should provide financial statements prepared by their accountant or by themselves. A company or close corporation that has been in operation for several years should be able to provide financial statements as requested (and explained above) as these are required in terms of the Companies Act. A sole proprietor that has been in operation for several years should be able to provide financial statements for three years. A new company / close corporation / sole proprietor should provide financial statements relating to the previous years of operation for which financial statements are available. Where the company / close corporation / sole proprietor has been in operation for a period that is too short for financial statements to be expected, then such a company should provide management accounts or, at least, bank statements for the past three months. We require the statements outlined above for the purposes of conducting a financial due diligence on the bidders that are under consideration. We would need some form of information on the financial position of the bidder, even if it is a sole proprietor or a new operation. Question 8 Should I not have been able to attend the briefing session: will I be considered not to have complied with the mandatory requirements? Will the RAF still consider my bid? Answer 8 Attendance at the briefing by a representative of the bidder (or at least one of the entities in a bidder that is a consortium / joint venture) was compulsory. If there was no attendance by such a representative then the bid will be considered non-responsive and will not be evaluated. Question 9 Conducting business with the State (para 2.8 of annexure B): would we be considered to have conducted business with the state where we have acted as a correspondent attorney on the instructions of another firm for a parastatal (Eskom)? Answer 9 Yes, they would be considered as having conducted business with the state. Question 10 Additional BEE Information: On page 56 (para 1 SMME status of your enterprise ) we are requested to state the SMME status of our enterprise according to the SMME table. Under column s 3 & 5 I fall into the Micro category and under column 4 my total turnover is more than R (R 0.2M) and as such I fall under the Very Small category. What is the SMME status of my enterprise Micro / very Small? Answer 10 3

4 Please indicate the category of status (column 2) that most closely aligns to the three indicators (column 3, 4 and 5) by selecting the most frequent status (two or three out of three) or average status. Question 11 Additional BEE Information: On page 57 (para 2) we are asked to complete a table detailing the list of all shareholders / directors / owners. The heading to the 4th column is not complete; it says Citizenship? Answer 11 We apologise for the poorly formatted table. The full column heading of the fourth column of the table under paragraph 2 on page 57 of the bid document is: Date RSA Citizenship Obtained. Question 12 Additional BEE Information: On page 61 (para 9) we are asked to attach an auditor s certificate confirming that the enterprise is a value-adding supplier. If we are not obliged to submit audited financial statements (as in the case of a sole proprietor) will a certificate issued by the person that drew up the financial statements suffice or must this statement be issued by an auditor? Answer 12 This certificate should be signed by the auditor of a company, the accounting officer of a close corporation or by the accountant of a sole proprietor or sole proprietor themselves. Question 13 Additional BEE Information: On page 64 (para 15a) we are asked to attach an auditor s certificate confirming that the turnover of our enterprise is less than R5 mill. Will a BBBEE level contribution certificate by a SANAS accredited verification agency suffice? Answer 13 Yes. Question 14 Due diligence and declaration of interest: On page 66 (para1.3) we are asked to indicate the percentage of turnover invested in productive resources. What is meant by productive resources and are staff considered to be productive resources? Answer 14 The term investment implies that the monetary value should relate to assets that may be reflected on the balance sheet. Staff salaries would not be relevant to this. Training costs could be justified as investment in productive resources. Question 15 Due diligence and declaration of interest: Electronic Data Interface (EDI) capabilities: At para we are asked whether we have electronic interfaces into customer applications and at para 1.6 whether we have any existing electronic link with trading partners. We make use of GhostConvey which gives us access to Korbitec Municipal Services (an electronic interface with the City of Cape town for rates clearance certificates) and KorbitecGateway (and electronic link with all property stakeholders creating a platform for communication) as well as many other gateways between banks and legal professionals (we are however not on the panel of any of the banks). Does this mean that we should answer yes / no to questions and 1.6? Answer 15 You should answer yes to Item 1.6 could be answered yes where the bidder has facilities as simple as internet and . Question 16 4

5 Due diligence and declaration of interest: Infrastructure (para 5.3.2): I have purchased my infrastructure (computers, printers / scanners / copiers / fax machines) cash, generally at sales or secondhand. I am not in possession of receipts for the machines but am able to provide make, model & serial numbers for this equipment. Will an affidavit suffice as proof of ownership and if so, what score will be awarded? Answer 16 Yes, the proposed proof outlined in the question above would be adequate. An affidavit stating the serial numbers should suffice. Question 17 Proof is required of the software licences of the computers (point item 2 on page 83). How is this proof to be provided? Two similar questions were received relating to point item 2 on page 83: Due diligence and declaration of interest: Infrastructure (para 5.3.2): My computers all came with software installed. I do not have proof of licenses but am able to provide details of the products (including product ID codes) as appear electronically on the software. Will this suffice as proof of licenses and if so, what score will be awarded? I refer to clause of the bid document with regard to the infrastructure section of the document. With regard to providing proof of the licenses for the software the actual certificate of authenticity and the key product code have been removed from the software as purchased and affixed to the three individual computers that we own, which is the only proof we have that we purchased the software for each individual computer. In this regard would an affidavit, quoting the certificate of authenticity and product code in regard to each individual computer suffice stating that inspection of the applicable license on the hardware would be allowed? Answer 17 The proposed proof outlined in the second two questions above (Product keys, serial numbers) would be adequate, but should be provided as an affidavit. This proof, if it substantiates the required software, would result in a full score of 9 points. Question 18 In regard to communication capabilities our service provider is Telkom who provide internet, telephones our dedicated fax line and facilities. Would proof of the original Telkom account that highlights the ADSL uncapped line/telephone and fax lines be sufficient proof of this requirement? Answer 18 Yes, the proposed proof outlined in the question above would be adequate. Question 19 MATRIX skills and Experience (page 86) do we simply circle / tick the applicable box? ANNEXURE F: 5.3 PAGE Do we simply tick next to each applicable box/ score or is more required? Answer 19 Please tick, cross or circle the relevant box / score, but the CV of each Lead Consultant should support the circled/crossed/ticked item one matrix should be completed per Lead Consultant (see on pages 82-83). Question 20 Will the Performance Security be in the form of cash or Insurance? If in cash or bank guarantee, how much will it be? Ref. Page 28. 5

6 Answer 20 Performance security is not a requirement for this tender. Question 21 On page 1of the SLA on the footnotes, it is stated that "the name and details of the bidder will be specified after the award of the contract. Does it mean we do not complete this page? Answer 21 Bidders are requested to complete the required information on the SLA. However, upon award the SPA with will be properly updated with the details of successful bidders and this will be much easier if the information is already written on the SPA. Question 22 Do we also mark the boxes on Functional Criteria. Ref. P82? Answer 22 No, apart from please indicating where substantiating information is attached. Question 23 The writer, and the company's only shareholder, has more than 17 years experience in the drafting of bills, objections thereto and appearing at taxation, having been admitted as an attorney in The company is just more than 1 year in existence. In the Matrix of Skills and Experience information is requested relating to the experience of the bidders. Should the experience be recorded as that of the writer, or that of the company? Answer 23 It should be the experience of the Lead Consultant(s). The CV of each Lead Consultant should support the circled/ticked item one matrix should be completed per Lead Consultant (see on pages 82-83). Question 24 Are B-BBEE Certificates issued by Accredited Accountants acceptable? Answer 24 Yes. Question 25 Should the attachments be attached directly behind each section/ page or all of them at the end of the Tender document and Service Level Agreement? Answer 25 The place where documents are attached is at the discretion of the bidder. The location of supporting information should be indicated in the bid document at the point where supporting information is called for. Question 26 BID CONDITIONS PARA do we supply the information to these questions on separate pieces of paper with same headings and where do we attach these answers? Answer 26 Bidders should treat the bid conditions as an indication of the manner in which the bid process will be managed, rather than as a request for information. The information in these items is addressed in annexure C and its Additional BEE Information Template and in other parts of the document. Question 27 ANNEXURE C: PARA 5- does it follow given that I am a level 4 BEE contributor that I am 5 of the 90/10 system and 12 on the 80/20 system- do I just tick these boxes? 6

7 ANNEXURE C: PARA 7.1: my answer is 4= 5 or 12 points- is this correct? Answer 27 On page 44 and 45 we indicate that the 80/20 system is applicable to this bid. Paragraph 5 is for information. Bidders should claim their status under paragraph 7.1 (and their points out of 20). In the example above the claim would be Level 4 and 12 points. Question 28 ANNEXURE C: B INFORMATION NEEDED FOR FINANCIAL ASSESSMENT: Some of this information appears at other parts of the document. Do we need to repeat all the information again or only information that has not yet appeared or will still appear in the bid document? Where should we attach the answers? Answer 28 Please indicate where information may be found if it has already been provided in response to another request in the bid document. Do not duplicate substantiating information. Question 29 ANNEXURE F: 5.3 TECHNICAL CRITERIA: do we tick next to the points in each subsection if we comply (or are the points for RAF to tick if we comply? Where do we attach our answers to fully substantiate/ comment? Answer 29 Bidders MUST indicate Comply by ticking the relevant box for each item under ANNEXURE F: 5.2. For ANNEXURE F: 5.3, no tick is necessary and bidders should merely substantiate their ability to meet the requirements or indicate where such substantiation may be found in the submission. The place where documents are attached is at the discretion of the bidder. Question 30 ANNEXURE F: 5.3 PAGE 85- What is required of us on this page? Answer 30 This page is meant to indicate how references / track record will be scored. There has been an error in the information provided. An addendum will be posted to the website. The information should read: 7

8 Track record will be scored as follows: For each questionnaire submitted, the relevant reference questionnaire will be scored individually. For each of the six (6) questions the response will be scored out of 5 according to the table below: Response Score out of 5 No response 0 Poor 1 Below Average 2 Average 3 Good 4 Very Good 5 The score for each of the six questions will be added together to obtain a score out of 30. The score out of 30 for each of the questionnaires (up to a maximum of two, discarding the lowest scoring references) will be added together to obtain a score out of 60. The score out of 60 will be multiplied by the 30 points allocated to the criterion and divided by 60 to obtain the points score out of 30 for Track Record. Question 31 Should the list of references of past and present clients relate only to clients regarding legal costs work or in my case as an attorney also all my legal clients? Answer 31 The references should indicate the experience in respect of legal cost work. Question 32 CHECKLIST OF DOCUMENTS TO BE SUBMITTED: PAGE 7: are the 4 documents listed on page 7 applicable to this bid? If so I am unsure where to locate them and how we are to complete them? Answer 32 Yes, see details below: The Bid Conditions on pages 11 to 24 require acceptance to be indicated in several places. The Economic Empowerment refers to annexure C and its Additional BEE Information Template on pages 44 to 64. The Due Diligence is on pages 66 to 69. The Price Schedule is on pages 88 and 89. 8