The Department of Public Enterprise’s Competitive Supplier by iyf57920

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									CSDP Commitment Plan framework



            Draft
Guideline to developing a Competitive Supplier Development Commitment Plan


CSDP Commitment Plan framework

Suppliers/tenderers are advised to review Eskom’s CSDP, which will
be revised on an annual basis1, for guidance on high expenditure
components within Eskom’s supply chain.

The following framework serves as a guide to those companies that
respond to Eskom tenders.

      1. Review Eskom’s CSDP plan, especially the respective industry
         groups and components set out in this plan.

      2. Choose components within Eskom’s CSDP plan.

      Your choices could be further informed by analyses of your own
(not necessarily revealed to us) like the following:

               Look at Tier 1, 2 and 3 manufacturing

               Conduct market analysis

                                  a. Market demand (local and abroad)

                                  b. Supplier analysis (local and abroad)

                                  c. Current local content

               Conduct investment analysis

               Complete     an    opportunity     analysis     (see   Figure   A1
                below).




1
    located at the Eskom website under “Tender Bulletin” and then “CSDP”


Eskom
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Guideline to developing a Competitive Supplier Development Commitment Plan


                      Existing local
                      capacity/                Requirements for development of/increase Capacity of         Timing
Component             capabilities             in local supply capacity                 plant               (months)

                      • 2 filter               • Technology transfer/ licence                 1200 bag      • 6+
Bag filters              manufacturing         • Purchase equipment and set up in             filters per   • 12 +
                         companies                 existing plant (both plants have space     annum
                         make smaller              available)
                         filters               •   Skills - Train equipment operators                       •3
                                               •   Debt financing (Rxx m)                                   = 21 months*
       * Assuming linear development process
 Source: TSAPRO team analysis


Figure A1: Illustration of an opportunity analysis

    3. Detail out a CSDP plan

    The CSDP commitment plan will typically:

         contain a multi year capital procurement and expenditure
          projection for the Works;

         contain a spend analysis of commodities and services that will
          be sourced locally, identify commodities and services where
          local security of supply (at competitive prices) would be
          beneficial;

         detail how the Works procurement spend can be leveraged to
          build and or enhance local supply and capability (which should
          include           well         defined          key      performance              indicators      and
          milestones for such intervention);

         identify, where possible, opportunities to introduce new
          supply capacity or capability (this refers to capacity and
          capability that does not currently exist within the South
          African economy) within Eskom’s supply base (with projected
          development costs and sustainability of such capacity /
          capability forming part of the analyses); and

         set out the tenderer’s commitments to CSDP with regard to:

                o local manufacturing targets over a particular timeline

Eskom
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Guideline to developing a Competitive Supplier Development Commitment Plan


           o establishing       or   expanding      sustainable      local   supply
              capability in South Africa, encompassing skills and
              know-how transfer as applicable;

           o investing, or procuring the investment of, funds to
              ensure the establishment of such local supply and
              capability; and

           o using the local supply and capability as part of its global
              capacity for Eskom as well as for the export market.

       No specific evaluation criteria are set for this aspect and
        Eskom reserves the right to negotiate with the tenderers
        regarding their CSDP commitments. Eskom’s agreement on
        the tenderer’s final CSDP is a pre-condition to contract award,
        but Eskom may waive this at its sole discretion.




Eskom
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