Request for Proposals:
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- Pauline Gardner
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1 Request for Proposals: TRANSACTION ADVISORY & OTHER PROFESSIONAL SERVICES TO BE RENDERED ON STUDENT ACCOMMODATION AND OTHER EDUCATIONAL INFRASTRUCTURE PROJECTS AT DIFFERENT CAMPUSES OF THE DURBAN UNIVERSITY OF TECHNOLOGY P a g e i 15
2 INVITATION AND SCOPE OF WORK The Durban University of Technology (DUT) hereby invites all capable and competent Service Providers to; Conduct due diligence on proposals submitted by Developers; Assist the university in assessing potential risks that are associated with the different student accommodation solutions as proposed by the Developers; Assist the university in drafting, including concluding the longterm lease agreements for student accommodation, based on specification issued by the University and solutions proposed by the Developers; Assist the university in setting up relevant committees to oversee progress towards the implementation of various models; Monitor progress during implementation including preparing monthly reports for the University; Monitor compliance by Developers with signed agreements and advise both the university and the Developers of deviations from the signed Agreements and mitigating strategies. The Transaction Advisor s delivery team shall include registered professional Architect, registered professional Structural & Civil Engineers, registered professional Electrical & Mechanical Engineers, registered professional Construction Health & Safety Expert, and admitted Lawyer specialising in building contracts. Further, the Transaction Adviser shall demonstrate understanding of the following concepts; Lease/rent to Own Approach; Build Operate and Transfer (BOT); Lease Back Option. CONDITIONS (a) (b) (c) (d) All key personnel for each discipline should be registered professionals in terms of their respective Acts. Preference will be given to respondents who comply with the University s current Procurement Policy & Procedures. Preferential Procurement Policy Framework Act (PPPFA) principles shall apply, whereby submissions will be evaluated according to the provisions of that Act. The scores will be determined as follows: (i) Price - 80 (ii) Empowerment - 20 There will be no compulsory briefing meeting, however, bidders are advised to familiarize themselves with all DUT campuses or those campuses which their proposals will be based on, as no additional cost in this regard will be entertained by the university. P a g e ii 15
3 One copy of the completed proposal shall be placed in a sealed envelope clearly marked: RFP 100 : REQUEST FOR PROPOSALS FOR TRANSACTION ADVISORY AND OTHER PROFESSIONAL SERVICES ON PROPOSED STUDENT ACCOMMODATION AND OTHER EDUCATIONAL INFRASTRUCTURE PROJECTS. The closing date and time for the receipt of completed proposals is 05 September 2018 by 10h00. Proposals must be deposited into the Closed quotation Box situated at Procurement Department, M.L. Sultan road, M.L. Sultan campus, Ground floor opposite security. Failure to provide any mandatory information required in this tender will result in the submissions being deemed non-responsive. Respondents must include a valid SARS Tax Clearance Certificate/SARS access pin, the Specified BBBEE certificates and company registration documents in their submissions in order to be considered. Telegraphic, telexed, facsimiled or ed submissions will not be accepted. No telephonic communication with any DUT member of staff relating to this Tender will be permitted. All enquiries regarding this Tender must be in writing only, and must be directed to: khemrajn@dut.ac.za The DUT reserves the right not to accept the lowest proposal in part or in whole or any proposal. P a g e iii 15
4 TABLE OF CONTENTS INVITATION AND SCOPE OF WORK (ii) 1. BACKGROUND Page SCOPE OF WORK Page ENVISAGED TRANSACTION ADVISOR S DELIVERY TEAM.... Page INFORMATION REQUIRED TO BE SUBMITTED... Page EVALUATION CRITERIA. Page CONDITIONS PRECEDENT Page CRITERIA FOR DISQUALIFICATION Page QUERIES IN RESPECT OF THE PROPOSAL Page CLOSE DATE FOR PROPOSALS. Page P a g e iv 15
5 1 BACKGROUND The University is in dire need of a cost effective and sustainable student s accommodation, conducive of living and learning which are central to student s success. The current interventions are heavily biased in favour of short-term arrangements through accommodating students in outsourced residences. This approach is not sustainable and is costly to the University and an impediment to student s success as most of the outsourced residences are in dilapidated states. There is a need for a long-term and lasting solution to student s accommodation, which is an inherent obligation for the University. The limitations for further development of University-owned student residences is equally becoming a reality that the University has to acknowledge and begin to formulate innovative approaches in tackling the backlogs. First of all the University doesn t have financial reserves that it can utilize to build its own student residences. Secondly, the Durban Campuses (where a large number of students are studying) have serious limitations of the availability of open land. On the other hand, the University s campuses in the Midlands have sufficient land to build student s residences; however this does not provide an overall solution to the University as student s enrolment at the Midlands campuses is currently about 5500 headcounts, translating to 20% of the overall number of students. Given the above challenges, there is a need to develop a sustainable hybrid model that will include both University-owned residences, and regulated outsourced student s accommodation. There is a need to accelerate the realization of these interventions in order to accelerate the attainment of one of the University s strategic objective; namely student centeredness. Statistics shows that the University s owned residences accommodate 3693 students in the year 2018, whilst about students are accommodated in outsourced residences. Therefore, there is currently over-dependence on outsourced residences. This is the main risk that requires to be carefully managed as it remains a major barrier in student s success and will forever be a trigger for instability in the institution due to the University not being able to meet the demand of providing accommodation to all those students that are in need of this critical service P a g e 5 15
6 2 GENERAL SCOPE OF SERVICES REQUIRED Subsequent to the challenges depicted in the background above, the DUT has called for Proposals for long term student accommodation solutions, from interested Developers. It is the view of the institution that, it does not have the necessary expertise to do the following upon receipt of the proposals from the Developers, and hence it intends appointing an independent consultant to; a) Conduct due diligence on proposals submitted by Developers. b) Assist the university in assessing potential risks that are associated with the different student accommodation solutions as proposed by the Developers. c) Assist the university in setting up relevant committees to oversee the programme; d) Monitor progress during implementation including preparing monthly reports for the university; e) Monitor compliance by Developers with signed agreements and advise both the university and the Developers of deviations from the signed Agreements and mitigating strategies. Extensive knowledge and understanding of the following concepts will be vital; Lease/rent to Own Approach; Build Operate and Transfer (BOT); Lease Back Option; Privately owned facilities but which are regulated by the university. 3 THE ENVISAGED TRANSACTION ADVISOR S DELIVERY TEAM The following professionals are expected to be part of the Transaction Advisor s delivery team, and are to be involved over the duration of the contract, as and when required by the Transaction Advisor shall comprise; 3.1 Architectural services as set out by the SACAP in accordance with the Architectural Profession Act, which in the main will verify efficiency of space allocation by developers including verifying compliance with the DHET standards and norms in this regard. 3.2 Structural Engineering Services as set out by the ECSA in accordance with the Engineering Profession Act, and will check structural integrity of the proposed options to alleviate potential risks that might be associated with structural unsoundness of proposed buildings, especially the existing ones. P a g e 6 15
7 3.3 Civil Engineering Services as set out by the ECSA in accordance with the Engineering Professions Act, and will in the main, verify availability of bulk services, and efficiency of the designs as proposed by Developers. 3.4 Electrical Engineering Services as set out by the ECSA in accordance with the Engineering Professions Act, and will in the main, verify all the allowance by the Developer, if they comply with DHET minimum standards and norms. 3.5 Electrical Engineering Services as set out by the ECSA in accordance with the Engineering Professions Act, and will in the main, verify all the allowances by the Developer, if they comply with DHET minimum standards and norms. 3.6 Mechanical Engineering Services as set out by the ECSA in accordance with the Engineering Professions Act, and will in the main ensure compliance of the proposed designs with DHET requirements. 3.7 Construction health and safety services as set out by the Construction Regulations of the Occupational Health & Safety Act, and will in the main ensure that the proposed structures don t pose any health risk to students and public. 3.8 Legal services as set out by the relevant law society. This will participate in verifying all legal implications of the proposals made by the Developers, including assisting the university in drafting and conclusion of long term agreements. P a g e 7 15
8 4 COMPULSORY INFORMATION REQUIRED TO BE SUBMITTED IN RESPONSE TO THIS REQUEST FOR PROPOSAL (RFP) 4.1 Comprehensive company profile 4.2 Details of the Lead Member / Consortium Member Firm 4.3 Contact person s Name and Contact Details i.e Telephone, Cell Phone, Electronic mail address of the Team Leader 4.4 Details of all other consortium members where applicable 4.5 A brief Resume of the individual consortium members where applicable and company profiles 4.6 Professional affiliations of each consortium member together with relevant registration numbers and proof of registrations 4.7 Resource capacity details of each consortium member for its local office (Durban and Pietermaritzburg) 4.8 Details of professional indemnity insurance cover for each consortium 4.9 Tax Clearance certificate/sars Access Pin for each consortium member 4.10 Company registration documents 4.11 Last two years audited / accepted financial statements 4.12 Consortium Agreement where applicable 4.13 Experience of consortium members in tertiary institution projects 4.14 Letters of reference from other clients Minimum of 3 per consortium member 4.15 Each consortium member will be required to complete and submit DUT Supplier forms if awarded the contract Methodology, Philosophy and Approach Method statement and implementation proposal Quality control and management plan Project Control Plan P a g e 8 15
9 4.17 Organization and Staffing Proposed project organogram Project roles and responsibilities Curriculum Vitae s of key project team members Proof of professional registration of the discipline team members Proof of qualifications of all team members Commitment of availability of each proposed team member to work on this project, including demonstrating other work commitments Broad Based Black Economic Empowerment A SANAS approved BBBEE Verification Certification certificate for each consortium member EMEs may provide Affidavit in terms of the Act P a g e 9 15
10 4.19 Financial proposal The financial proposal will be based on the estimated hours to be spent by the team on the project as follows; # Description No of hours 1 Due diligence stage Quantity Surveyor 720 Architect 240 Civil Engineer 240 Structural Engineer 240 Electrical Engineer 240 Mechanical Engineer 240 Construction Health & Safety Specialist 240 Admitted Lawyer 80 2 Monitoring during implementation Quantity Surveyor 1152 Architect 288 Civil Engineer 288 Structural Engineer 288 Electrical Engineer 288 Mechanical Engineer 288 Construction Health & Safety Specialist 288 Admitted Lawyer Total for fees before VAT & disbursements 4 Add a % allowance for disbursements 3 Total for fees & disbursements before VAT 4 Add VAT at 15% 5 Total for fees and disbursements including VAT Rate per per hour Amount P a g e 10 15
11 4.20 The University intends utilizing services of all or some of the appointed Transaction Advisor s team members in planning and implementation of some educational infrastructure projects which are yet to be identified. The fees for rendering these will be based on the latest Fee Tariff Guidelines as issued by their respective professional bodies, applicable as at the date of this tender. The Bidders are therefore required to show the maximum discount percentage which they are prepared to offer. Upon calculation of fees for each discipline which will be needed for each project, the university will then reduce the fee amount by the tendered discount percentage, in order to arrive at the correct professional fee amount. 5% of the overall fee total will be allowed for disbursements. The deliverables for each discipline will be in line with those that are shown in the respective fee tariff guidelines, and this will also be applicable to the fee split per stage or deliverable. Please fill in your preferred discount percentage which will be considered during risk assessment of the evaluation process. No. Disciplines Discount Percentage offered Quantity Surveyor Architect Civil Engineer Structural Engineer Electrical Engineer Mechanical Engineer Construction Health & Safety specialist P a g e 11 15
12 5 EVALUATION CRITERIA The Evaluation Criteria is set hereunder. The intended procedure after the receipt of responses to this request for proposal is that, the Bid Evaluation Committee will evaluate all tenders, and evaluation shall include presentations by bidders: Step 1 - Will deal with compliance with mandatory requirements. Tax Clearance, BBBEE Certificate and SIPDM Certificate. Step 3 Will deal with functionality/quality of the submissions and proposals. This will also look into the commercial risk assessment. Bids who score 80% and above in this category will be considered for bid adjudication Step 4 Adjudication of bids on price and empowerment. Evaluation of Quality and functionality - 80% And thereafter adjudication of financial offer 80% And empowerment 20% CRITERION MAXIMUM POINTS AWARDED SCORING Locality 5 5 Points if firm has offices at Pietermaritzburg or Durban 15 Projects (5) 15 points Student Residences Projects (4) 12 points project experience as a Projects (3) 9 points Transaction Advisor Projects (2) 6 points (PPP Student Housing Projects (1) 3 points Advisory) Projects (0) 0 points Letters of Reference 15 5 Points per each letter of reference submitted MEANS OF VERIFICATION Proof of address not older than 3 months (Utility accounts, etc) Letter of reference submitted, which show good or better performance in similar projects P a g e 12 15
13 Method Statement and Points for a clear, precise Method statement to Implementation and relevant method show a clear Proposal statement understanding of the task at hand. Experience of 15 5 Points for experience of CV s of key professional professional team on professional team on projects team members showing projects of similar nature, of similar nature relevant experience. TOTAL 100 THE MINIMUM QUALITY AND FUNCTIONALITY SCORE REQUIRED IS 80 POINTS CRITERION MAXIMUM POINTS SCORING FINANCIAL OFFER Points for the lowest compliant bidder. Prorating of points for all other bidders BROAD BASED BLACK 20 Level 1 Contributor 20 points ECONOMIC Level 2 Contributor 18 points EMPOWERMENT MEANS OF VERIFICATION Assessment of financial offer submitted. Assessment of SANAS approved BBBEE Certificates submitted P a g e 13 15
14 6 CONDITIONS PRECEDENT 6.1 The DUT shall not be held liable for any costs of preparation, presentation or submission of a proposal. 6.2 Adjustments to a submitted proposal, by a telephone, facsimile, or letter will not be considered. Should a tenderer/consortium wish to alter his/her proposal, it must withdraw it by letter, and submit a revised proposal prior to the closing date and time as set out in the invitation to submit a proposal. 6.3 DUT reserves the right to award or not to award the contract and to award the contract to any respondent it deems necessary for any reason and shall not be obliged to provide any reason for its decision. 6.4 Submission of a response to this request for proposal does not constitute conclusion of a contract. 6.5 Each consortium member shall be jointly and severally liable for performance under this contract should it be appointed. 6.6 The form of contract shall be the CIDB Professional Services Agreement as amended to include items contained in this Terms of Reference and otherwise agreed. 6.7 The Consortium shall be required to provide professional indemnity insurance that covers a value not lower than two times the offered value. 6.8 The successful entity shall contract with the DUT. 6.9 A Tenderer is precluded from tendering for this project if any of its Directors, Shareholders, Principal, Member, Staff Member or spouse or relative of any Director, Shareholder, Principal, Member, etc is directly involved with this project or is a member of any decision making body within the DUT, e.g DUT Council. P a g e 14 15
15 7 CRITERIA FOR DISQUALIFICATION 7.1 Non submission of a valid Tax Clearance Certificate/SARS PIN/ CSD Report for all consortium members 7.2 Non-disclosure of any findings and sanctions imposed on any professional in terms of the relevant Professions Act. 7.3 If DUT has reason to believe that the tenderer, or any person being the employee, partner, director or shareholder of the tenderer or a person acting on behalf of or with the knowledge of the tenderer; Has offered, promised or given a bribe or other gift or remuneration to any person in connection with obtaining a contract; and or; Has acted in fraudulent and corrupt manner in endeavouring to obtain or obtaining a contract; and or Has approached an officer or employee of DUT with the object of influencing the award of contract in the respondent s favour; and or Has entered into any agreement or arrangement, whether legally binding or not, with any other person, firm or company: To refrain from tendering for this contract; and or As to the amount of the tender to be submitted by either party; and or Has disclosed to any other person, firm or company other than DUT, the exact or approximate amount of its tender; 7.4 DUT may, in addition to using any other legal remedies, reject the tender or cancel the contract based on a breach by the tenderer if a contract had been concluded already. 7.5 Tenderer/consortium members are warned that they will be disqualified should any attempt be made by the tenderer/consortium/their partners, either directly or indirect, to canvass any employee of DUT or the Project Manager/Transaction Advisors, in respect of a response, between the closing date and the date of the award of the contract. P a g e 15 15
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