ENQUIRY NO. LE 0445 ARCELORMITTAL SOUTH AFRICA LTD INVITES TENDERS FOR THE ROAD TRANSPORTATION OF ARCELORMITTA S FINAL PRODUCTS (HEAVY COILS) FROM VANDERBIJLPARK WORKS TO ZAMBIA (LUSAKA) TENDERS ARE DUE ON: 27 DECEMBER 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 faxed to the official tender fax number: (016) 889-1007 or email TenderOffice@arcelormittal.com. (PLEASE DO NOT INCLUDE A COPY OF THIS ENQUIRY IN YOUR TENDER, ESPECIALLY WHEN YOU FAX YOUR TENDER.) (Also see paragraph 2.1) DATE ISSUED: 10 DECEMBER 2013
I N D E X 1 INSTRUCTIONS TO TENDERER... 3 2 TENDERS... 3 3 ESTIMATED TONNAGE... 6 4 GENERAL REQUIREMENTS... 6 5 PRICE ADJUSTMENT (ESCALATION)... 8 6 BROAD BASED BLACK ECONOMIC EMPOWERMENT (BBBEE)... 8 7 PAYMENT... 8 8 CONFIDENTIALITY... 8 9 GOODS IN TRANSIT (GIT) COVER... 9 10 TERMINATION... 9 11 PERMITS... 9 2
1 INSTRUCTIONS TO TENDERER 1.1 DISCREPANCIES 1.1.1 The Tenderer shall check the numbers 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 this document contains any discrepancies or obvious errors, then the Tenderer shall immediately inform the Logistics Procurement Analyst, ArcelorMittal, Vanderbijlpark, (see par. 1.3 below) and have the problem rectified or explained as the case may be. No claim whatsoever will be entertained for errors in the tender price resulting from the abovementioned discrepancies. 1.1.2 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 may be qualified accordingly. 1.2 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. 1.3 CONTRACTUAL / TECHNICAL ENQUIRIES 1.3.1 Enquiries or information required with regard to the COMMERCIAL, FINANCIAL and CONTRACTUAL aspects of this enquiry document may be addressed to: Refilwe Palayi: Procurement Analyst, ArcelorMittal, Vanderbijlpark Telephone: 016 889 2206 OR 083 468 1597 Email: refilwe.palayi@arcelormittal.com 2 TENDERS 2.1 SUBMISSION OF TENDER The Tender, covering letter and supporting documents shall be submitted to ArcelorMittal 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 ENQUIRY NO. LE 0445 IMPORTANT: PLEASE DO NOT SUBMIT A COPY OF THIS ENQUIRY DOCUMENT 3
The Tender shall be submitted to ArcelorMittal not later than the closing time and date for receipt of Tenders as mentioned on the cover page. 2.2 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. 2.3 TENDERS TO BE COMPLETED 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 pre-requisite may render the Tender liable for rejection. 2.4 VARIATIONS / QUALIFICATIONS BY TENDERERS / ALTERNATIVE TENDERERS 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 consist 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 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 compliance with all conditions and specifications of the enquiry documents. 2.5 LATE TENDERS 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. 2.6 LOWEST TENDER ArcelorMittal does not bind itself to accepting the lowest or any tender, or 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 electronic mail from ArcelorMittal. 2.7 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, and thereafter until withdrawn in writing by the Tenderer 4
2.8. INFORMATION THAT MUST BE SUPPLIED BY TENDERERS PLEASE NOTE THAT AN INCOMPLETE TENDER WILL NOT BE CONSIDERED THE TOTAL TONNAGE WILL NOT NECESSARILY BE AWARDED TO ONE TRANSPORTER ONLY ENQUIRY LE 0445 2.8.1. Date when rendering of service can commence (or notice period needed before your company can commence) ArcelorMittal needs the transport to commence on 1 February 2014. 2.8.2. Tenderers MUST indicate the size of their current fleet (quantity of trucks) and must clearly indicate how many tri-axles and how many links their fleet consist of. Please DO NOT reflect any vehicles of any sub-contractors but only reflect the vehicles owned by your company. 2.8.3. Transport tariff per ton (excluding VAT) based on the diesel price of December 2013 (R12.5837/liter for Gauteng). 2.8.4. Percentage of tariff that reflects diesel (i.e. 28% as per Seifsa s Table L). 2.8.5. Should you require that the tariffs 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. 2.8.6 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 1st day of the month following the month during which the price of diesel changed. Please confirm your acceptance. 2.8.7. Escalation formula must be supplied please refer to clause 5.3 and also provide the fixed portion of your tariff together with your proposed annual escalation formula. ArcelorMittal propose a fixed portion of 20% as reflected in clause 7 Annexure B (Draft Agreement). The fixed portion is the portion of the tender tariffs that will not be adjusted during annual negotiations as it is expected of the transporter to take responsibility to also reduce their costs continuously. Refer also clause 7 of the Draft Agreement. 2.8.8. A copy of your company s current Goods in Transit Insurance Cover must be submitted with your tender. 2.8.9. 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 18 of the Annexure B (Draft Agreement). 2.8.10. The following documents must accompany the tender for company with no vendor number in ArcelorMittal and failure to do so will render the tender incomplete: (i) (ii) (iii) (iv) (v) Company Registration Certificate (CK 1, CK 2) / Certificate of Incorporation (CM 1, CM 46); TAX Clearance Certificate / SARS Good Standing Certificate; Registration Certificate at Compensation Commissioner or Letter of Good Standing from Compensation Commissioner W.As. 48) VAT Registration Certificate BBBEE Certificate of Compliance 5
Should your tender be successful, you will be requested to supply the following additional documents/sign the following documents: (a) (b) (c) (d) (e) (f) (g) Vendor Application Form; PAYE SARS questionnaire 37.2 Written agreement General Conditions of purchase Company letterhead Electronic payment transfer Instruction letter Original Cancelled cheque / Letter from financial institution confirming bank details 3 ESTIMATED TONNAGE THE TOTAL ESTIMATED TONNAGES FOR THIS ENTIRE ENQUIRY IS 800 TONS PER MONTH 100% of these tonnages will be delivered at Lusaka (Zambia), this tender require 90% Tri-axle and 10% link. 4 GENERAL REQUIREMENTS 4.1 PRODUCT SPECIFICATION AND REQUIREMENTS HEAVY COILS - Coil Mass: Average 22.2 tons, Min 20.8 tons and Max 25 tons - Truck type: Tri-axle 26 tons min pay load and 32 tons min pay load REQUIREMENTS - all trailers must have rubber on the deck (Width: 1, 23 m, Thickness: 0.9 mm) - When fastening the coil, there must be rubber between the coil and chain. - All material must be tarped. The total tonnage will not necessary be awarded to one Transporter only Vanderbijlpark Works To Lusaka Estimated volume/month 800 tons Tri-axle Min 26 ton (90 %) Link Min 32 ton (10% ) NB: Transporters are advice to expect approximately 2 working days delay at border, this mean that truck might be delayed for more than 2 days at border waiting for clearing documentation and ArcelorMittal do not have any control of delays that might occur. Tariffs tendered must be exclusive of VAT. Tender tariffs must be inclusive of clearing and forwarding charges. Tenderers are to provide tariffs for both Tri-Axles and Inter-link trailers 6
4.2 CUSTOMER COMPLAINTS Where product/material is damaged in transit, the complaint must be brought to ArcelorMittal s attention in writing within 48 hours of the incident so that it may be registered on ArcelorMittal s Customer Complaints System. Failure to report any such complaint shall render the Successful Tenderer liable for damages to the product/material. An ArcelorMittal representative shall together with the Successful Tenderer investigate the complaint to determine the cause thereof. If it is found that Successful Tenderer is responsible for the damage to the product then the Successful Tenderer shall be responsible for compensating ArcelorMittal at the invoice value for the product/material which had been damaged as well as for the onward and return transport cost of the product/material, which is to be returned to the relevant ArcelorMittal Works by the Successful Tenderer. Damaged product/material remains the property of ArcelorMittal and should be returned to ArcelorMittal s premises within 96 hours of the incident/ accident. ArcelorMittal shall be compensated at the invoice value for material that is lost or stolen whilst in custody or under the control of the Successful Tenderer. Once the product is accepted by the Successful Tenderer and placed in the Successful Tenderer area of responsibility, then the Successful Tenderer becomes responsible for any customer complaints that are not related to ArcelorMittal s production processes. All claims are to be settled by the Successful Tenderer within sixty (60) days from date of invoice, failing which ArcelorMittal reserves the right to cancel the Agreement with the Successful Tenderer. If material is not delivered within 7 days of loading at any ArcelorMittal premises then the Manager, Production Planning must be informed of the reason for non-delivery and when the load will be delivered. 4.3 TONNAGES The total estimated tonnage for the entire enquiry is more or less 800 tons per month. Please note that these volumes are erratic and not evenly distributed over the year. It is specifically recorded that ArcelorMittal provides no warranties and/or undertakings and that ArcelorMittal makes no representations as to the tonnages available for transport by the Successful Tenderer during the term of the Agreement. It is further specifically recorded that ArcelorMittal cannot be held accountable for any costs incurred by the Successful Tenderer(s) such as the purchase of equipment in order to give effect to the Agreement. The quantities to be transported and reflected in Enquiry LE 0445 are estimated quantities and are only given as a guide to indicate the extent of the material to be transported which are subject to production volumes, customer orders, etc. The estimated quantities are given without any obligation on the part of ArcelorMittal and the quantities may vary from time to time in accordance with the requirements of ArcelorMittal. It is further specifically recorded that ArcelorMittal can under no circumstances be held accountable for any costs incurred by the Successful Tenderer(s) such as the purchase of equipment, etc. in order to give effect to the Agreement. 7
4.4 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 Contractor simultaneously with the payment for the relevant services. In all instances tax invoices shall be submitted and shall include the Contractor s VAT registration number. Invoices rendered for payment shall, where applicable, be adjusted accordingly 5 PRICE ADJUSTMENT (ESCALATION) The anticipated period of the Agreement/s that will result from this Enquiry is 3 years, i.e. to start 1 February 2014 and to expire 31 January 2017. (a) (b) A fixed portion of at least 20% (twenty percent). 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. Applicable Road Freight Indices (Seifsa -Table L1 or L2). 6 BROAD BASED BLACK ECONOMIC EMPOWERMENT (BBBEE) A Tenderer, unless fully BBBEE compliant, is required to improve its BBBEE compliance status by at least one contribution level every year for the duration of the Agreement or alternatively, until such time as a full BBBEE compliance level is reached. ArcelorMittal reserves the right to audit the Successful Tenderer s BBBEE status on a regular basis and the Successful Tenderer shall afford ArcelorMittal reasonable access to all documentary and other information necessary to conduct such an audit. The Tenderer shall indicate what his BBBEE status / Level is and shall provide the necessary documentation in support thereof. 7 PAYMENT 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). 8 CONFIDENTIALITY 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. 8
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. 9 GOODS IN TRANSIT (GIT) COVER The Successful Tenderer shall undertake to duly comply with all statutory control measures and applicable regulations governing the transport of the Products, and shall make provision for keeping the Product in the condition it was when received from ArcelorMittal. The Successful Tenderer shall have Goods in Transit insurance cover. Each load will be insured for at least the market value of the product and the cost of insurance is to be included in the transport tariffs. The estimated current value of the products is at R500, 000.00 (five hundred thousand rand) per load but is subject to change of which ArcelorMittal will inform the Successful Tenderer. 10 TERMINATION Either party will have the right, in addition to any other rights which it may have in law, to terminate an agreement being arrived at forthwith and without further notice in any of the following events: If the other party makes any arrangements in contemplation of insolvency or is declared insolvent or liquidated; 11 PERMITS if the other party ceases to carry on business; if the other party ceases to be in a position to fulfill any of its obligations in terms of an agreement being arrived at; if there is any change in the control or a material change in the shareholding or control or the other party which the concerned party on reasonable grounds might consider to be detrimental to the concerned party. (For the purpose of this clause control includes, without limitation) the power or ability of any shareholder of the other party, whether exercising such power by voting rights or pursuant to any agreement or arrangement) materially to influence any decision or act taken or to be taken by or on behalf of the other party). The Successful Tenderer(s) shall be solely responsible for obtaining the necessary authority and road transport permits from the authorities concerned as well as for the licensing of the vehicles concerned, and shall provide proof thereof to ArcelorMittal s satisfaction when called upon to do so. 9