airports company of south africa (acsa) rfb reference … rfb 51_2017_advertising.pdf · relations...

REQUEST FOR BID (RFB) FOR THE AWARDING OF FOUR SEPARATE ADVERTISING

CONCESSIONS FOR A PERIOD OF TEN YEARS THROUGH AN OPEN PUBLIC BID

PROCESS WITH BID NUMBER COR51/2017

Airports Company of South Africa (ACSA)

RFB Reference Number: COR51/2017

BID SUBMISSION DEADLINE: 15 September 2017 at 14h00

Bidding Company

Name PLEASE INPUT

Representative

Name PLEASE INPUT

Signature PLEASE INPUT

Date PLEASE INPUT

INDEX

Section 1: Instructions to Bidders

1.1 Collection of RFB document and briefing session

1.2 Submission of Response

1.3 Separate Bids

1.4 Late Bids

1.5 Clarification and Communication

1.6 Bid Responses

1.7 Disclaimers

1.8 No Contact Policy

1.9 Conflict of Interest

1.10 Validity period

1.11 Confidentiality of information

1.12 Anti-Corruption Hotline

Section 2: Submission of Proposal

2.1 Terms and Conditions of RFB

2.2 Binding Arbitration Provision

2.3 RFB Acceptance

2.4 Response Format and Content

2.5 Obligations on Award

2.6 Concession Agreement

2.7 Security

2.8 Further Obligations on Award

2.9 Disclaimers

2.10 RFB Timelines

Section 3: Background, Purpose, and Scope of RFB

3.1 Background

3.2 Passenger Numbers

3.3 Introduction

3.4 ACSA’s Advertising Strategy

3.5 The Advertising Opportunities

3.6 Bid Response Options

3.7 Scope of RFB

3.8 Special Conditions of the RFB

Section 4: Preference (B-BBEE) and Price

4.1 Definitions

4.2 B-BBEE Provisions

4.3 Points Awarded for Price (Financial Offer)

Section 5: Evaluation Criteria

5.1 Overview

5.2 Evaluation Approach

5.3 Mandatory Requirements / Pre-Qualification Criteria

5.4 Functionality/ Technical

5.5 Price and B-BBEE

5.6 Transformation Imperatives

Section 6: Returnable Documents

Appendix A Declaration form

Appendix B Declaration of forbidden practices form

Appendix C Acceptance of RFB terms and conditions

Appendix D Company profile, executive summary and organogram

Appendix E Joint Venture (JV) Agreement (If applicable)

Appendix F Valid Original Tax Clearance Certificate

Appendix G B-BBEE Declaration Form

Appendix H Original B-BBEE Verification Certificate

Appendix I Latest audited financial statements/management accounts

Appendix J Bank / Financial Letter of Support

Appendix K Structure of resources for the Opportunity

Appendix L CV ’s of key personnel

Appendix M Schedule of Bidder Experience

Appendix N Certificate of Incorporation

Appendix O Rent Schedule: Bid Rentals & Turnover %

Appendix P Names and Identity Numbers of Directors (ID Copies)

Appendix Q Order of Preference

Appendix R Important Commercial Terms

Appendix S Pro Forma Concession Agreement

Appendix T Marketing, Sales & Operational Plan

SECTION 1: INSTRUCTIONS TO BIDDERS

1.1 Collection of RFB documents and Briefing Sessions

Tender documents will be available at the National Treasury website (eTender) from the 14 July 2017. Bidders

should be registered with National Treasury on the Central Supplier Database (CSD). If award is made to

a Bidder not registered on the National Treasury CSD, the Bidder will be required to be registered within

7 working days following award.

Non-compulsory Briefing Sessions will take place as follows:

OR Tambo International Airport – 03 August 2017 at 10h00

Cape Town International Airport – 02 August 2017 at 12h00

King Shaka International Airport – 01 August 2017 at 10h00

Bidders may attend any or all of the briefing sessions as scheduled

1.2 Submission of response

The envelopes containing bid documents must have on the outside, the bidder’s return address, the full description

of the bid, bid number and the details of the Bid Management Office/Procurement / Supply Chain department

where the bid will close. The documents must be signed and completed by a person who has been given authority

to act on behalf of the Bidder. The bottom of each page of the bid documents must be signed or stamped with the

Bidder’s stamp as proof that the Bidder has read the bid documents. Bid documents must be submitted on or

before 14h00 (PM) on 15 September 2017 via hand delivery only. The bid documents must be sent to the

following addresses: Airports Company South Africa Limited, OR Tambo International Airport, 3rd Floor

Terminal A, North Wing Lower Room Offices, ACSA Tender Deposit Box, OR Tambo International Airport

OR Airports Company South Africa Limited , King Shaka International Airport, Ground Floor MSO Building

OR Administrator of the Tender Office Tender Box, Southern Office Block, Cape Town International

Airport (CTIA).

1.3 Separate Bids

This RFB involves more than one Advertising Opportunity in respect of which bids are invited. Each such

Advertising Opportunity is placed for bid individually and Bidders who wish to bid for more than one Advertising

Opportunity must bid separately for each Advertising Opportunity.

1.4 Late Bids

Bids which are submitted after the closing date and time will not be accepted.

1.5 Clarification and Communication

Name: Lebogang Jiyane

Designation: Tactical Sourcing Buyer

Cell: +27 11 723 1598

Email: [email protected]

Request for clarity or information on the bid may only be requested until 31 August 2017 at 16h00. Any

responses to queries or for clarity sought by a bidding entity will also be sent to all the other bidding entities

which have responded to the Request for Bids invitation.

Bidders may not contact any ACSA employee on this bid other than those listed above. Contact will only be

allowed between the Successful Bidder and ACSA Business Unit representatives after the approval of a

recommendation to award this bid. Contact will also only be permissible in the case of pre-existing commercial

relations which do not pertain to the subject of this bid.

1.6 Bid Responses

Bid responses must be strictly prepared and returned in accordance with this bid document. Bidders may be

disqualified where they have not materially complied with any of ACSA’s requirements in terms of this bid

document. Changes to the Bidder’s submission will not be allowed after the closing date of the bid. All bid

responses will be regarded as offers unless the Bidder indicates otherwise. No Bidder or any of its

consortium/joint venture members may have an interest in any of the other Bidder/joint venture/consortiums

participating in this bid for the same Advertising Opportunity.

1.7 Disclaimers

It must be noted that ACSA may:

a) Award the whole or a part of this bid;

mailto:[email protected]

b) Split the award of this bid;

c) Negotiate with all or some of the shortlisted Bidders;

d) Award the bid to a Bidder other than the highest scoring Bidder where transformation imperatives (Point

5.6) allow;

e) Cancel this bid;

f) ACSA does not take any responsibility for expenses or loss, which may be incurred by any Bidder in

preparation of this bid.

1.8 No Contact Policy

Neither Bidders, nor their members (if consortia), nor their advisers, may contact officers, employees, or

advisers of ACSA, save as provided for in point 1.5 above, about the RFB or the submission of bids at any

time after the Clarification and Communication closing date. Contact will however be permissible only in the

case of pre-existing commercial relations, in which case contact may be maintained only in terms thereof. In

making such allowed contact, neither Bidders nor their members, nor anyone acting on behalf of any Bidder

or member, may refer to this RFB or bid in response thereto. The “no contact policy” will not apply in relation

to any information deemed to be in the public domain, or which is readily available from organs of state.

1.9 Conflict of Interest

Bidders are required to identify and to disclose as soon as possible any conflict of interest or potential conflict

of interest to ACSA. Bidders should contact ACSA for clarity on whether a conflict of interest actually exists

or not. The existence of a conflict of interest or a failure by a Bidder to timeously disclose any such conflict or

part conflict, may result in the Bidder’s bid being disqualified.

Each Bidder shall include in its bid a declaration that neither the Bidder nor any member of the Bidder’s

consortium or shareholder of such member has any interest whatsoever (whether direct or indirect) in any

other Bidder or in any member of any other Bidders’ consortium bidding for the same Advertising Opportunity.

1.10 Validity Period

For ACSA to thoroughly evaluate responses, it requires a validity period of one hundred and eighty (180)

business/working days determined inclusive from date of bid closure, therefore the financial offer/s by the

Bidder must remain firm and valid for such period. It is only in exceptional circumstances where ACSA would

accommodate a proposal to change the financial offer submitted.

1.11 Confidentiality of Information

ACSA will not disclose any information furnished to ACSA through this bid process to a third party or any

other Bidder without the prior written approval of the Bidder whose information is sought.

Furthermore, ACSA will not disclose the names of the Bidders until the bid process has been finalised.

Bidders may not disclose any information provided to them as part of this process to any third party without

the prior written approval of ACSA. In the event that the Bidder requires to consult with third parties on the

contents of this RFB document, such third parties must complete and sign confidentiality agreements, which

should be returned to ACSA as part of response submission to this bid process.

1.12 Anti-Corruption Hotline

ACSA subscribes to fair and just administrative processes. ACSA therefore urges its clients, suppliers and

the general public to report any fraud or corruption to:

Airports Company South Africa ANTI-CORRUPTION HOTLINE

Free Call: 0800 00 80 80

Fax: +27 (0)12 664 0307

Fax2e-mail: 086 726 1681

Email: [email protected]

mailto:[email protected]

SECTION 2: SUBMISSION OF PROPOSAL

2.1 Terms and Conditions of RFB

2.1.1 This RFB is open to all Bidders, registered and / or duly authorised to operate in South Africa.

2.1.2 Any bids received after the bid submission date and time will not be considered by ACSA

2.1.3 Except where specifically provided for in this RFB, a Bidder may make no changes to its bid after the

closing time and date.

2.1.4 ACSA reserves the right to award the contract on the basis of the bid submission received from a

Bidding entity subject to ACSA’s terms and conditions.

2.1.5 ACSA or their duly appointed representatives shall be the sole adjudicators of the acceptability and or

feasibility of the bids. The decision shall be final and except as required by law or otherwise, no reason

for the acceptance or rejection of any bid will be furnished.

2.1.6 Should the bid be awarded on the strength of information furnished by a Bidder, which information is

proved to have been incorrect, in addition to any other legal remedy it may have, ACSA may at any

time during the life of the contract:

(I) Recover from the relevant Bidder all costs, losses or damages incurred by it as a result of the

award and/or

(ii) Cancel the award of the bid and/or contract and claim any damages, which it may have suffered

or will suffer as a result of having to make less favourable arrangements.

(iii) The Bidder shall be liable to pay for losses sustained and/or additional costs or expenditure

incurred by ACSA as a result of cancellation. ACSA shall furthermore have the right to recover

such losses, damages or additional costs by way of set off against monies due or which may

become due to the Bidder in terms of the said contract.

2.1.7 All representations, agreements or arrangements arising from bids submitted in terms hereof

(including any negotiations that follow) shall not be binding on ACSA, its officers, employees or agents

unless reduced to writing and signed by a duly authorised representative of ACSA.

2.1.8 ACSA reserves the right to amend the terms and conditions of this RFB at any time prior to finalisation

of the contract between the parties and shall not be liable to any Bidder or any other person for

damages of whatsoever nature which they may have suffered as a result of such amendment. All bids

are submitted at the entire risk of the Bidder.

2.1.9 ACSA reserves the right to postpone the closing date for submission of bids or to withdraw the RFB

at any time without giving rise to any obligation for the responsibility for any loss or financial damage

which may be incurred or suffered by any Bidder.

2.1.10 In the case of a joint venture or partnership between Bidders, evidence of such joint venture must be

included with the bid submission, either in the form of a Joint Venture Agreement or Memorandum of

Understanding. Alternatively, all the members of the joint venture may in writing nominate one member

of the joint venture to complete and sign the RFB on behalf of the joint venture. This written authority

must be signed by duly authorised members of the joint venture and be submitted with the bid.

2.1.11 Bidders must ensure that all information submitted by them in their bids is complete, accurate and

fairly represents the information communicated. Bidders must further ensure that, irrespective of the

weighting (if any) ascribed to any criterion; the bid contains all information relevant to an evaluation of

that criterion. Any information which is incomplete, inaccurate, ambiguous, unfairly represented or

conditional may result in the bid being disqualified or adversely evaluated. Bidders must immediately

notify ACSA in writing should they become aware that any information stated in the bids is or may be

inaccurate for whatever reason, including due to a subsequent change in circumstances

2.1.12 After submitting a bid, no Bidder may make any changes in the composition of its consortium and / or

shareholding before the final date and time for the submission of the bids without the prior written

approval of ACSA. Full details of any such intended change must be notified in advance, in writing, to

ACSA for consideration. ACSA reserves the right to reject or accept such change, whether

conditionally or unconditionally. ACSA reserves the right to disqualify any Bidder which makes or

attempts to make any change to the composition of its consortium other than in accordance with the

aforesaid provisions.

2.2 Binding Arbitration Provision

2.2.1 It is a condition of participation in this RFB process between the Bidder and ACSA that should any dispute

or difference arise between the parties, this shall be resolved by a single Arbitrator -

• Concerning the purport or effect of the RFB documents or of anything required to be done or

performed there under;

• Concerning any aspect of the RFB process to anything done or decided there under: or

• Concerning the validity of the award of the RFB to any Bidder or the failure to award same to

any Bidder, then such dispute or difference shall be finally resolved by arbitration.

2.2.2 Such arbitration shall be by a single arbitrator who shall be -

• Selected by agreement between the parties, or failing such agreement nominated on the

application of any party by the Arbitration Foundation of Southern Africa (AFSA); and

• The arbitrator shall have power to open up, review and revise any certificate, opinion,

decision, requisition or notice relating to all matters in dispute submitted to him/her and to

determine all such matters in the same manner as if no such certificate, opinion, decision,

requisition or notice had been issued.

2.2.3 Upon every or any such reference, the costs of an incidental to the reference and award shall be at the

discretion of the arbitrator, who may determine the amount of the costs, or direct them to be taxed as

between attorney and client or as between party and party and shall direct by whom and to whom and in

what manner they shall be borne and paid.

2.2.4 The award of the arbitrator shall be final and binding on the parties and any party shall be entitled to apply

to the Courts to have such award made an order of court.

2.2.5 Save as set out in this clause, the arbitration shall be conducted in accordance with the rules of the

Arbitration Foundation of Southern Africa for Commercial Arbitrations.

2.2.6 The arbitration shall be held in Johannesburg in the English language.

2.2.7 However, nothing in this clause shall preclude any party to the arbitration from seeking interlocutory relief

in any court having jurisdiction pending the institution of a review or other appropriate proceedings for

legal redress.

2.2.8 Such arbitration shall be commenced and concluded within 30 days of the dispute having noted.

2.3 RFB Acceptance

2.3.1 ACSA reserves the right to reject: -

a. Incomplete bids;

b. Late bids;

c. Conditional bids; and

d. Bids that are non-compliant with the procedural and administrative requirements.

2.3.2 This RFB implies neither obligation to accept the highest or any bid nor any responsibility for expenses

or loss, which may be incurred by any Bidder in preparation of his bid.

2.3.3 Bidders may include with their bids any descriptive matter, which, if referred to in the RFB, will form part

of the RFB. In case of any discrepancy, however, the issued RFB and supporting documents and

information completed therein by the Bidder will be considered as the valid and binding bid.

2.3.4 Notwithstanding any other provision in this document, no ACSA employee or any person related to or

associated with an ACSA employee may (individually or through a corporate vehicle which includes a

company, close corporate, trust, partnership etc.) submit a bid for consideration in this tender process

unless interest is declared and approved as per Delegated Level of Authority.

2.4 Response Format and Content

Please organise proposals in separately tabbed sections with labels that correspond to the sections that have

been outlined in the Index of this RFB document.

• Please keep sections sequential.

• Provide a concise response in provided spaces.

• Wherever a table is provided, please title your section tab to match the RFB section in which the

table appears.

• Use the table format for your responses, and maintain the sequence and reference numbers in

the table.

• Please keep responses in the document formats they are being requested.

2.5 Obligations on Award

In addition to any terms which may be stipulated by ACSA in the afore going clauses, following the award

of any bid, the Successful Bidder shall:

2.5.1 Finalise, to ACSA’ satisfaction any details outstanding in connection with the Advertising

Opportunity and / or the Concession agreement within the time allowed therefore;

2.5.2 Sign the Concession agreement with ACSA on terms agreeable to ACSA within the time allowed

therefore under Point 2.6 (Concession agreement);

2.5.3 Furnish ACSA with the security required in terms of Point 2.7 (Security) within the time allowed

therefor; and

2.5.4 Promptly obtain, at its own cost, any approval or licence required by Law to enable the Successful

Bidder to enter into the Concession agreement and / or to fully perform its obligations and exercise

its rights in terms of the Concession Agreement

ACSA may, in its sole discretion and from time to time, extend the date or dates by when the

Successful Bidder is required to comply with the above terms.

2.5.5 ACSA shall have the right to withdraw, with immediate effect or with effect from any reasonable future date nominated by it, in writing, the award of a Bid and to cancel any contract consequent thereon if the award of any Bid or conclusion of a Concession Agreement is subsequently set aside by any order of court, arbitration award or other binding agreement, award or finding, whether such order, agreement, award or finding arises from contested proceedings or an agreed settlement of any dispute;

2.5.6 Should ACSA withdraw the award as contemplated above, the Successful Bidder’s bid shall be

disqualified from further consideration by ACSA and ACSA shall proceed further as may be

appropriate, with regard to the remaining bids for the Advertising Opportunity.

2.5.7 No Bidder shall have any right of recourse against ACSA as a result of the withdrawal of a bid

award and / or cancellation of a Concession Agreement by ACSA pursuant to this Clause 2.5

2.6 Concession Agreement

2.6.1 The award of the bid entails the entering into of the Concession agreement between ACSA and

the Successful Bidder.

2.6.2 With immediate effect on the award of a bid, a contract shall come into existence between ACSA

and the Successful Bidder on the terms set out in the pro forma Concession Agreement attached

as Appendix S (Pro-Forma Concession Agreement)

2.6.3 The Successful Bidder shall be obliged to formally sign the Concession Agreement within 21

calendar days of the award of the Bid.

2.7 Security

The Successful Bidder (and, in certain instances where ACSA in its sole discretion requires, each of its

shareholders or members) will be required to furnish ACSA with security in a form and for an amount

acceptable to ACSA for the due fulfilment of its obligations in terms of this bid Concession Agreement.

The nature and amount of the security required is set out in this bid Concession Agreement. The security

is to be lodged with ACSA within 21 days of the award of the Bid. Failure to provide this security may

result in the cancellation of the concession and the withdrawal of an award of Bid as envisaged in Point

2.5.

The Successful Bidder will further be required to provide Surety. The nature and amount of the surety

shall be set out in this bid Concession Agreement.

2.8 Further Obligations on Award

Unless expressly stated otherwise, the following warranties are given as at the date on which a bid is

submitted to ACSA, as at the date on which any bid is awarded and for the period between those dates.

The Bidder warrants to ACSA except as fully and fairly disclosed to ACSA in writing in the bid, that:

2.8.1 The information furnished by the Bidder is complete, accurate, unconditional and fairly presented;

2.8.2 It will be able to allocate the appropriate resources to the Advertising Opportunity in order to be

able to operate should it be awarded the bid within 90 days from the date it is awarded the bid;

2.8.3 It envisages no impediment in obtaining the necessary security required by ACSA in terms of

Point 2.7 (Security); and

2.8.4 It has the necessary skills and experience to successfully meet the financial projections set out

in its Bid

2.9 Disclaimers

2.9.1 The information contained in the RFB or otherwise provided to Bidders, whether orally or in writing

(collectively “the RFB Documents”) was obtained from several sources and is offered in good

faith for the guidance of the Bidders only;

2.9.2 Any estimates and projections provided involve significant elements of subjective judgement and

analysis which may or may not be correct. Bidders are cautioned that the information presented

in the RFB Documents may be inaccurate inter alia due to human error or due to incorrect source

information having been furnished to ACSA. Further, the information referred to herein is not an

exhaustive account of the statutory requirements which may affect a bid and shall not be regarded

as a complete or authoritative statement of relevant Law;

2.9.3 Each Bidder is obliged to become acquainted with all of the provisions of the Laws affecting the

bid, the entering into of the Concession Agreement and fulfilment of its terms;

2.9.4 The RFB Documents do not purport to contain all of the information that may be required by

Bidders to evaluate the Advertising Opportunities and any recipient of the RFB Documents should

conduct its own independent legal, financial or other analysis of the Advertising Opportunities and

of the information contained or referred to in the RFB Documents and should obtain such

professional advice as it deems necessary;

2.9.5 The RFB Documents supersede all information concerning the Advertising Opportunities which

may have been previously communicated to the Bidder, whether orally, in writing or otherwise;

2.9.6 The RFB Documents are not intended to form the basis of a decision to enter into any transaction

with respect to an Advertising Opportunity or any other investment decision and do not constitute

an offer, invitation or recommendation to enter into or may any such transaction or decision;

2.9.7 Neither ACSA nor its employees, directors or advisers make any representation or warranty,

express or implied or accept any responsibility or liability as to the accuracy or completeness of

the information contained in the RFB Documents or any written or oral information made available

in connection with ACSA, its business activities and / or the Advertising Opportunities and nothing

contained herein is or shall be relied upon as a promise or representation, whether as to the past

or as to the future.

2.10 RFB Timelines

Description Date

Bid Invitation 14 July 2017

Briefing Sessions 01-03 August 2017

Enquiries Closing Date and Time 31 August 2017 at 16h00

RFB Submission closing Date and Time 15 September 2017 at 14h00

Concession start date 01 July 2018

SECTION 3: BACKGROUND, PURPOSE AND SCOPE OF RFB

3.1 Background

Since its inception 24 years ago, Airports Company South Africa Limited (ACSA) has transformed into a focused,

profitable and commercial enterprise that is market-driven and customer service oriented. The company was

formed in 1993 as a public company under the Companies Act of 1973, as amended, and the Airports Company

Act of 1993, as amended.

ACSA owns and operates South Africa’s nine principal airports, comprised of the country’s major international

airports, namely; O.R. Tambo (ORTIA), Cape Town (CTIA) and King Shaka (KSIA) and the smaller regional

airports, namely; Bram Fischer (Bram), Upington (UTN), Port Elizabeth (PLZ), East London Airport (ELN), George

Airport (GRJ) and Kimberley Airport (KMB). ACSA’s registered corporate office operates from Bedfordview.

ACSA is focused on creating and operating world-class airports measuring up to international standards. This is

evidenced by ACSA’s participation in selected airport management. In February 2006, ACSA and a consortium

comprising an Indian company GVK and South African listed company, Bidvest, won a concession to manage

Mumbai International Airport (MIAL).

In addition, ACSA is extensively involved in the expansion, maintenance and management of Guarulhos

International Airport (Guarulhos) in Brazil. Guarulhos is currently the largest international airport in Latin America.

An MOU was signed with Ghana in 2014 for the provision of project management oversight as well as technical

and management consulting services. An operational readiness and transfer programme has been submitted and

approved which allows ACSA specialists to provide support services to the respective management teams to

plan, prepare and transition to the new Terminal 3 currently being built at Khotoka International Airport in Ghana

which is due to be completed and commissioned in April 2018.

ACSA’s involvement at the airport in Mthatha kicked off in October 2016 and a 5-year business plan is currently

being developed.

Internally ACSA recently introduced a new governance framework and operating model. It is hoped that the new model will assist ACSA to achieve its business strategy, supported by three business pillars:

3.2 Passenger Numbers

3.3 Introduction

On-airport advertising can entertain and engage passengers whilst generating additional commercial revenues

for airports.

Brands must be assured of the following in order to lure them to the airport:

Airports Company South Africa’s 9 airports with total passenger numbers in 2016

OR Tambo International

(Johannesburg)

Cape Town International

King Shaka International

(Durban)

Port Elizabeth International

East London George Bram Fischer International

(Bloemfontein)

Kimberley Upington International

20.4m 10m 4.9m 1.6m 0.7m 0.7m 0.4m 0.2m 0.1m

Airports Company South Africa’s 9 airports with total passenger numbers in 2017

OR Tambo International

(Johannesburg)

Cape Town International

King Shaka International

(Durban)

Port Elizabeth International

East London George Bram Fischer International

(Bloemfontein)

Kimberley Upington International

20.7m 10.2m 5.2m 1.4m 0.8m 0.7m 0.4m 0.2m 0.1m

1. Their target market will be reached through airport advertising

Airports offer access to affluent and influential individuals difficult to reach with most other media

2. The airport travellers will be in a receptive frame of mind to absorb the brand messaging

Most passengers are attentive to airport branding due to the high dwell time associated with air travel

3. The opportunities offered are visible and offer brands a variety of options in terms of the type of

mediums and sizes available

Due to the sheer size of terminal buildings and the surrounding precinct, airports generally offer a wide

variety of both location and scale to brands

4. Airport advertising is comparatively well priced

Given the unique attributes of the airport users (high LSM) and the fact that the International Airports’

terminals are operational on a 24-hour basis, brands are guaranteed value for money and thus a

comparatively higher return on spend at airports

These attributes serve to cement the notion that airport advertising offers a powerful environment in which

brands are able to communicate with current and potential consumers.

3.4 ACSA’s Advertising Strategy

ACSA intends to increase its annual advertising income from approximately R 200 Million (current) per annum

to R 300 Million (market potential) per annum by implementing a structural and tactical intervention in the

advertising business model to unlock revenue potential.

3.4.1 The strategic objectives are to:

• Provide the highest return on investment for advertisers

• Increase the value of airport advertising through decluttering

• Invest in digital platforms

• Balance income maximisation with the enhancement to the passenger journey

• Achieve ACSA’s corporate transformation objectives

3.4.2 These strategic objectives will be achieved through:

➢ Selecting specialists who will differentiate airports from their broader Out-Of-Home or media offering

➢ Migrate to fewer but more effective touchpoints moving from the current multi-concession model to

a limited concession model

➢ Decluttering of Airports through the award of exclusive zones as opposed to individual sites. In this

regard ACSA requires a balance between using spaces for commercial advertising, creating a

destination for arriving and departing passengers (attached as Annexure 1 are plans for ORTIA to be

considered) and the integration of the retail offerings to be marketed on airport (attached as Annexure 2

is a sample of current retail marketing ). These objectives should be incorporated into a holistic digital

plan where the airport destination and retail offering are given exclusive loops for an appropriately

discounted charge.

➢ Leverage National Footprint through the award of zones across the network of 9 airports

➢ Defined Route to Market by providing exclusivity to Successful Bidders (Concessionaire)

➢ Transformation through the application of prequalification criteria and transformation imperatives

3.5 The Advertising Opportunities

3.5.1 For the purpose of this RFB there are a total of four (4) opportunities namely:

3.5.1.1 Outdoor

Consisting of all external sites across the network of nine (9) airports as listed in Clause 3.1.

The Current Outdoor portfolio is made up as follows:

Airport Current Number of Sites Approximate Current Minimum

Monthly Rental

ORTIA 36 R 2,000,000

CTIA 34 R 1,500,000

KSIA 36 R 700,000

REGIONALS

(Comprising PLZ, ELN, BLM,

GRJ, KMB, UPN)

43 R 300,000

TOTALS 149 R 4,500,000

The maps indicating the current layout of Outdoor sites are affixed hereto as Schedule 1.

The required minimum monthly rental in respect of the Outdoor opportunity will be in the

sum of R 4 Million (Four million rand) per month

3.5.1.2 Domestic Arrivals

Consisting of all sites located within the Domestic Terminals: Arrivals across the network of nine (9)

airports as listed in Clause 3.1.

The Current Domestic Arrivals portfolio is made up as follows:


Monthly Rental

ORTIA 19 R 1,234,862

CTIA 28 R 1,309,545

KSIA 20 R 1,160,000

REGIONALS


GRJ, KMB, UPN)

40 R 175,877

TOTALS 107 R 3,880,284

The maps indicating the current layout of Domestic Arrivals sites are affixed hereto as Schedule 2.

The required minimum monthly rental in respect of the Domestic Arrivals opportunity will be

in the sum of R 3.5 Million (Three Million and five hundred thousand rand) per month

3.5.1.3 Domestic Departures

Consisting of all sites located within the Domestic Terminals: Departures across the network of nine

(9) airports as listed in Clause 3.1.

The Current Domestic Departures portfolio is made up as follows:


Monthly Rental

ORTIA 26 R 1,660,042

CTIA 27 R 1,034,400

KSIA 18 R 759,800

REGIONALS


GRJ, KMB, UPN)

56 R 266,733

TOTALS 127 R 3,720,975

The maps indicating the current layout of Domestic Departures sites are affixed hereto as Schedule

3.

The required minimum monthly rental in respect of the Domestic Departures opportunity will

be in the sum of R 3.5 Million (Three million and five hundred thousand rand) per month

3.5.1.4 International (Arrivals and Departures)

Consisting of all sites located within International: Arrivals and Departures across the network of

nine (9) airports as listed in Clause 3.1.

The Current International portfolio is made up as follows:


Monthly Rental

ORTIA 39 R 3,800,000

CTIA 11 R 300,000

KSIA 5 R 25,000

REGIONALS


GRJ, KMB, UPN)

3 R 6,910

TOTALS 60 R 4,131,910

The maps indicating the current layout of International (Arrivals and Departures) sites are affixed

hereto as Schedule 4.

The required minimum monthly rental in respect of the International opportunity will be in

the sum of R 3.5 Million (Three million and five hundred thousand rand) per month

Whilst the current site layouts and rentals achieved have been provided for reference, ACSA is relying upon

Bidders to use this footprint to consolidate and declutter the offering to achieve its objectives including

digitalisation described under 3.4.1 and 3.4.2 above. Any major deviation from the current footprint or mediums

requiring extended loading on the infrastructure or operational flow is subject to approval by relevant

departments within ACSA.

All awards made in terms of the Advertising Opportunities will be for a period of 10 years and will commence on

01 July 2018.

3.6 Bid Responses

Bidders must bid in accordance with all of the options below:

3.6.1 Bidders to provide Capital requirements during the term of the bid award in respect of infrastructure

required for the Advertising Opportunities

3.6.2 ACSA to consider providing the Capital requirements or part thereof in respect of infrastructure required for the Advertising Opportunities. ACSA shall at its election provide the Capital required as an additional rental payable by the Bidder as per the following table :

Asset Life up to

3 years

Asset Life up to

5 years

Asset Life up to

7 years

Asset Life up to

10 years

Starting Rental for

Every R100 000

escalating at 6% from

Year 01

R 40,100 for 3

years only

R 25,600 for 5

years only

R 21,950 for 7

years only

R 14,800 for 10

years only

3.6.3 Bidders must also propose a JV partnership with ACSA for the Advertising Opportunities. This option

will be available to ACSA even where the Bidder has met or exceeded the B-BBEE hurdle. ACSA at its

sole discretion may consider partnering through Special Purpose Vehicle (SPV) with ACSA equity at

26% as follows:

• ACSA to be provided with full details on equity contribution and projected balance sheet and income

statement of the SPV during term. In addition, the dividend cover; pre-emptive rights and other

pertinent shareholder rights for consideration must be provided for ACSA’s consideration.

• Lease obligation to ACSA not altered

• ACSA’s involvement in the SPV will lighten the equity burden should any emerging entities be

invested with a large established (specialist) operator

• ACSA’s 26% equity may be transferred to the Emerging Entity any time after 2 years

• This option will require PFMA approval in terms of Section51 (g) and 54 (2) which could take up to

12 months from exercising award

3.6.4 Bidders must indicate the basis on which each of their bids are submitted in Appendix O (Rent Schedule) in addition to the SPV feasibility described above.

3.7 Scope of RFB

3.7.1 Overview of the Scope of the RFB

1. Background of the Business Case

Historically ACSA’s advertising division operated on a hybrid model where ACSA sold sites in addition to

contracting with multiple media owners able to secure sites for brands and advertisers at each airport

location.

These multiple touch points in reaching advertisers resulted in clutter and erratic pricing which caused

confusion in the market and lead to many brands withdrawing from the airports. Further exacerbating

matters was the resultant price wars which saw a decline in revenues and an increase in visual clutter.

After international and local research and surveys, the intent is to move away from the multi-concessionary

platform to a limited concession model with a maximum of four (4) opportunities able to serve across the

network of airports. These four distinct opportunities will provide concessionaires an exclusive zone

meeting advertiser needs and the ability to tailor solutions for advertisers.

The many long -term advertising concession agreements have expired across the network of airports and

have been extended and contracted for until December 2017. This Bid aims to source advertising

concessionaires who will run these concessions for a period of ten years across the network of airports.

2. Details of Advertising Opportunities

The subject opportunities are at all ACSA owned Airports. These opportunities are made up as follows:

(1) International portfolio across the network of airports;

Comprising approximately 60 sites at OR Tambo, Cape Town International and King Shaka

International Airports with an estimated current revenue to ACSA of R 4.1 Million per month.

The monthly minimum rentals required for this opportunity in terms of this RFB is R 3.5 Million per

month.

(2) Domestic Departures portfolio across the network of airports;

Comprising approximately 127 sites across the network of 9 airports with an estimated current

revenue to ACSA of R 3.7 Million per month.

The monthy minimum rentals required for this opportunity in terms of this RFB is R 3.5 Million per

month.

(3) Domestic Arrivals portfolio across the network of airports;


revenue to ACSA of R 3.9 Million per month

The monthy minimum rentals required for this opportunity in terms of this RFB is R 3.5 Million per

month.

(4) Outdoor portfolio across the network of airports


revenue to ACSA of R 4.5 Million per month

The monthy minimum rentals required for this opportunity in terms of this RFB is R 4 Million per

month.

3.8 Special Conditions of the RFB Bidders can bid for any or all of the 4 (four) Advertising Opportunities with the following conditions: 3.8.1 The concession period for this RFB is for a period of 10 years and will commence on 01 July 2018 3.8.2 Bidders will be required to diligently account for the quarterly turnover rental payable to ACSA and will

also be required to submit to ACSA Audited Annual Turnover Certificates within three months after the anniversary of the lease commencement date

3.8.3 Bidders must meet the required annual escalation applicable to minimum rentals for each opportunity for which a bid is submitted

3.8.4 A Bidder may not be awarded more than 2 (two) opportunities available through this RFB.

3.8.5 Bidders who bid for more than one opportunity must specify their order of preference upfront under

Appendix Q (Order of Preference) as part of their bid submission

3.8.6 A Bidder who qualifies for award of more than 1 (one) opportunity must enter into a separate Concession Agreement for each opportunity

3.8.7 The Successful Bidder will have to abide by the predetermined restrictions as municipal by-laws in outdoor opportunities at Cape Town International Airport. The external sites implementation plans are guided by the City of Cape Town Outdoor Signage By-Law as promulgated from time to time. Cape Town International Airport has been re-designated from Partial to Minimum Control in terms of Schedule 1 of the Outdoor Advertising and Signage By-law.

The City of Cape Town and Cape Town International Airport have reached an agreement and together have work-shopped an Outdoor Advertising Signage Master Plan (SMP) which allows for 20 (twenty) freestanding outdoor billboards. The maximum size of each freestanding billboard is 36sqm (thirty-six square meters) unless an individual billboard is double-sided in which case the maximum size will be 36 sqm per side with the total advertising space of 72 sqm (seventy-two square meters). Internal illumination of free standing billboards is permissible. The Signage Master Plan (SMP) agreed with the City of Cape Town also allows for 16 (sixteen) flat custom made wall signs. Currently all flat wall signs are larger than 54 sqm (fifty-four square meters) and each sign will require a waiver to accommodate the increased size. The increased size is supported in the SMP and will be considered for approval only once the individual signage applications are submitted to the City of Cape Town. Further, all other controlling regulations in Schedule 4 of the By-Law must be adhered to. The successful Bidder will be responsible for all application costs related to the approval of the outdoor SMP and any variations thereto. Cape Town International Airport will be the legal permit holder for such approvals granted.

3.8.8 The Successful Bidder will have to abide by the predetermined restrictions as municipal by-laws in outdoor opportunities at King Shaka International Airport. The external sites implementation is guided by the eThekwini Municipal by-laws. King Shaka International Airport has been designated a Special Advertising Zone, the provisions for which are not currently included in the by-laws. The airport is currently involved in a process with the municipality to define such provisions. On award, the Bidder’s proposed Master Plan is to be submitted to eThekwini Municipality for approval along with accompanying reports per site which shall include but not be limited to traffic impact assessments, structural engineering diagrams, elevation diagrams etc. The Bidder is to meet the conditions with the eThekwini Municipality. The successful Bidder will thus be responsible for all application costs related to their proposed Master Plan for the outdoor opportunity at King Shaka International Airport. King Shaka International Airport will be the legal permit holder for such approvals granted.

3.8.9 The Successful Bidder must, on award of the Outdoor Opportunity abide by the provisions of all applicable Municipal by-laws in the Municipalities where OR Tambo International Airport (ORTIA), Port Elizabeth (PLZ), East London (ELN), George (GRJ), Bloemfontein (BLM), Kimberley (KMB) and Upington (UPN) Airports are located The bidder will be responsible for all applications and associated costs related to the approval of the Outdoor Master Plans at the airports as listed. ACSA shall in all instances remain the legal permit holder for such approvals granted.

3.8.10 The Successful Bidder/s who is/are awarded the Domestic Arrivals, Domestic Departures and/or the International Opportunity in terms of this RFB must take cognisance of the Ambiance elements currently being driven by the respective airports. Ambiance projects are being rolled out at OR Tambo International Airport (ORTIA), Cape Town International Airport (CTIA) and King Shaka International Airport (KSIA).

Bidders are required to factor into their Master Plan design elements associated with the Ambiance themes at the respective airports. Extracts from the Ambiance Projects at the three international airports (ORTIA, CTIA and KSIA) are included as Schedule 5

3.8.11 Bidders who are awarded the Domestic Arrivals, Domestic Departures and / or the International Opportunity are to take cognisance of the installation of “Infogate Pods” within these zones. Any advertising opportunities available on these platforms will become available to the Successful Bidder within these zones on award. The envisaged locations of these “Infogate Pods” are included as Schedule 6

3.8.12 Wi-Fi advertising opportunities are specifically excluded from this RFB and Bidders are hereby advised that this opportunity will be pursued separately by ACSA

3.8.13 Any extensions or improvements to any of the airports passenger terminals during the lease period will be included and will form part of the concession from commencement of operations as these areas will have extended the current terminals. However, the minimum monthly rental at date of commissioning will be increased by the proportion of the new terminal area created in proportion to the existing and new areas at a discount of 25% e.g., 10,000 sqm (ten thousand square meters) of new area divided by 100,000 sqm (one hundred square meters) (i.e. 10,000 sqm new area plus 90,000 sqm existing area) = 10% to be further discounted by 25% = 7.5%. Therefore, should the existing rental on operationalizing the extended area be R 2 Million (two million rand) per month such existing rental shall be increased by 7.5% to R 2,150 Million (two million, one hundred and fifty thousand rand) per month. Should the existing lease anniversary rental escalation be less than 6 months away, the escalation will only be computed on the existing rentals i.e. R 2 Million (two million rand) per month; however, all future annual escalations will thereafter be on the total rentals payable which shall include the rental applicable to the new area.

3.8.14 Successful Bidders may sub-contract with current Concessionaires for a period not exceeding 6 months from date of award whilst reorganising the Master Plans submitted as part of this RFB

3.8.15 At the expiry of the 6 month period described in Point 3.8.14, Bidders may not sub-contract more than 25% of the awarded opportunity

3.8.16 Sub-contracting may only take place with entities having the same or better B-BBEE status level as the Successful Bidder

3.8.17 In terms of Point 3.8.14 and 3.8.15 ACSA will calculate turnovers due based on turnover generated by the sub-contractor and not based on revenue received by the Bidder

3.8.18 The MAC transformation targets increase each year and bidders will be required to meet them annually, failing which, at ACSA’s election the bidder will be placed in breach with an option to terminate the lease. In addition, a penalty of 5% of the bidding entities turnover will become payable.

3.8.19 The successful bidders will also be required to progress their B-BBEE status at award to a minimum of Level 3 in terms of timetable agreed with ACSA on award of any opportunity; failing which, breach provisions and penalties as described above will apply.

3.8.20 Should the successful Bidder qualify as Level 3, this must be maintained or improved throughout the contract duration

SECTION 4: PREFERENCE (B-BBEE) AND PRICE

The maximum points for this bid are allocated as follows:

Points

Price 50

B-BBEE Status Level of Contribution 50

Total Points for Price and B-BBEE must not Exceed 100

4.1 Definitions

“Advertising Industry” consists of advertising and / or media companies whose core business is the

conceptualisation, creation, production or display of advertising to foster a relationship between a product and

the public.

“B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad -Based

Black Economic Empowerment Act;

“B-BBEE status level” means the B-BBEE status received by a measured entity based on its overall

performance contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of

section 9(1) of the Broad-Based Black Economic Empowerment Act;

“Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic Empowerment

Act, 2003 (Act No. 53 of 2003);

“Exempted Micro Enterprise (EME)” means an entity with an annual Total Revenue of R 10 (ten) Million or

less

“Large Entity Development” within the advertising industry means an entity with a turnover in excess of R

50 (fifty) Million

“Qualifying Small Enterprise (QSE)” within the advertising industry means an entity with a turnover of

between R 10 (ten) Million and R 50 (fifty) Million

“Total Revenue” bears the same meaning assigned to this expression in the Codes of Good Practice on Black

Economic Empowerment issued in terms of section 10 of the Broad-Based Black Economic Empowerment Act

and promulgated in the Government Gazette on 13 October 2013;

4.2 B-BBEE Provisions

MAC SA is a broad forum of marketing, advertising and communication enterprises comprising representatives from each stakeholder group or industry who are signatories to the sector charter and who are guided by the MAC SA Constitution and its mandate.

The Transformation of the Marketing, Advertising and Communication (MAC) Sector Code was gazetted on 01 April 2016.

The intention is to allocate the available 50 points for B-BBEE in accordance with the MAC Sector Charter as detailed below:

LARGE ENTITIES SCORECARD:

Element Weighting

1. Ownership 25 points

2. Management control 27 points

3. Skills development 20 + 10 bonus points

4. Enterprise and supplier development 42 + 4 bonus points

5. Socio-economic development initiatives 5 points

6. Responsible marketing and communications 5 points

Total Weighting Points 124 + 14 bonus points

The 138 points scored by the bidding entity will be converted to 50 points in terms of this RFB.

Eg. A Large Entity scoring 120 points out of the possible 138 points will be awarded 43.48 points out of the available 50 points calculated as follows: (120 / 138) x 50

QUALIFYING SMALL ENTERPRISES (QSEs) SCORECARD:

Element Weighting

1. Ownership 25 points

2. Management control 15 points

3. Skills development 25 + 10 bonus points

4. Enterprise and supplier development 30 points

5. Socio-economic development initiatives 5 points

6. Responsible marketing and communications 5 points

Total Weighting Points 105 + 10 bonus points

The 115 points scored by the bidding entity will be converted to 50 points in terms of this RFB.

Eg. A Qualifying Small Enterprise scoring 95 points out of the possible 115 points will be awarded 41.3 points out of the available 50 points calculated as follows: (95 / 115) x 50

Should the Bidder be a Large Entity or Qualifying Small Enterprise which does not prescribe to the Sector Charter, the generic scorecard will equally be converted to 50 points in terms of the bid.

EXEMPTED MICRO ENTERPRISES (EMEs)

B-BBEE Status Qualification

1. Level One Contributor ≥100 points on the Generic Scorecard

2. Level Two Contributor ≥95 but <100 points on the Generic Scorecard

3. Level Three Contributor ≥90 but <95 points on the Generic Scorecard

4. Level Four Contributor ≥80 but <90 points on the Generic Scorecard

Maximum Points 100 Points

EMEs will receive the minimum points under the Qualification scale in respect of their B-BBEE status unless a B-BBEE certificate is provided in which case the points will be awarded as reflected on the certificate and converted to the 50 points available for B-BBEE

4.2.1 Bidders are required to submit a B-BBEE Verification Certificate in addition to the full accompanying B-

BBEE report from a Verification Agency accredited by the South African Accreditation System (SANAS)

or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA), an affidavit

in the case of Qualifying Small Enterprises and an Emerging Micro Enterprises or an Auditor/Accounting

Officer as contemplated in the Close Corporation Act (CCA) together with the bid.

4.2.2 Bidders other than EMEs must submit their original and valid B-BBEE status level verification certificate

or a certified copy thereof, substantiating their B-BBEE rating issued by a Registered Auditor approved

by IRBA or a Verification Agency accredited by SANAS. QSEs have an additional option of submitting a

sworn affidavit as its B-BBEE certificate in terms of the amendments to the B-BBEE Codes of Good

Practice in 2013.

4.2.3 A trust, consortium or joint venture, that has been incorporated will qualify for points for their B-BBEE

status level as an incorporated legal entity, provided that the trust, consortium or joint venture entity

submits their B-BBEE status level certificate.

4.2.4 A person will not be awarded points for B-BBEE status level if it is indicated in the bid documents that

such a bidder intends sub-contracting more than 25% of the value of the contract to any other enterprise

that does not qualify for at least the points that such a bidder qualifies for, unless the intended sub-

contractor is an EME that has the capability and ability to execute the sub-contract.

4.2.5 A Bidder awarded an Advertising Opportunity may not sub-contract more than 25% of the value of the

opportunity to any other enterprise that does not have an equal or higher B-BBEE status level than the

bidder concerned, unless the opportunity is sub-contracted to an EME that has the capability and ability

to execute the sub-contract.

4.2.6 ACSA reserves the right to require of a Bidder, either before a bid is adjudicated or at any time

subsequently, to substantiate any claim in regard to its B-BBEE, in any manner required by ACSA

4.3 Points Awarded for Price (Financial Offer)

A maximum of 50 points is allocated for price with 40 of the available points allocated to minimum monthly

rentals and the remaining 10 points allocated to turnover percentage.

Points will be allocated on the following basis:

40 Points for Fixed Minimum Monthly Rentals in Month 1 of Year 1

Ps = 40 (1 + Pt – Pmin)

Pmin

Where:

Ps = Points scored for comparative price of bid or offer under consideration

Pt = Comparative price of bid or offer under consideration; and

Pmin = Comparative price of highest acceptable bid or offer;

10 Points for Turnover Percentage which shall remain constant for the duration of the bid award:

Ps = 10 (1 + Pt – Pmin)

Pmin

Where:

Ps = Points scored for comparative price of bid or offer under consideration

Pt = Comparative price of bid or offer under consideration; and

Pmin = Comparative price of highest acceptable bid or offer;

4.3.1 Bidders will be ranked according to the highest number of total combined points (Price and B-BBEE) and

will thereafter be subjected to Transformation Imperatives as provided for in Point 5.6

4.3.2 Points scored will be rounded off to the nearest 2 decimal places

SECTION 5: EVALUATION CRITERIA

5.1 Overview

ACSA applies a pre-determined evaluation criterion when considering received bids. During the evaluation of

received bids ACSA will make an assessment as to whether all the bids comply with set minimum requirements

and whether all returnable documents/information have been submitted. Bidders which fail to meet minimum

requirements, thresholds or have not submitted required mandatory documentation may be disqualified from this

RFB process at that phase.

The requirements of any given stage must be complied with prior to progression to the next stage. ACSA reserves

the right to disqualify Bidders without requesting any outstanding document/information.

ACSA may enter into negotiations with three shortlisted Bidders (if any) after the adjudication process before

awarding of any bid. The purpose of these negotiations will be clarification and negotiation of Bids and agreement

of key commercial, financial, legal and/or technical aspects with the objective of signing the Concession

Agreement immediately on awarding the bid to the Successful Bidder.

The Successful / Unsuccessful Bidder will be notified in writing.

5.2 Evaluation Approach

A staged approach will be used to evaluate bids and the approach will be as follows:

Stage 1 Stage 2 Stage 3 Stage 4

Ch

eck if

all

man

dato

ry

ad

min

istr

ati

ve r

eq

uir

em

en

ts

have

be

en

receiv

ed

an

d a

ll

pre

-qu

alifi

cati

on

cri

teri

a h

ave

been

fu

lfille

d

Evalu

ate

on

fu

ncti

on

ality

or

the

tech

nic

al

asp

ect

of

the b

id

Evalu

ate

Pri

ce a

nd

Pre

fere

nce

(B-B

BE

E)

Tra

nsfo

rmati

on

Im

pera

tiv

es

5.3 Mandatory Requirements / Pre-Qualification Criteria

The following Mandatory Returnable Documents must be provided. Exclusion of any one of these documents will

result in immediate disqualification.

1. Bidders must submit an original, valid SARS Tax Clearance Certificate / PIN / proof of application with SARS.

No bid will be awarded to any person or entity whose tax matters have not been declared to be in order by

SARS

2. Bidders must in relation to rentals meet the specified minimum monthly guaranteed rental set in Point 3.5.1

3. Bidders must in relation to turnover meet the specified turnover percentage set in Point 5.5.5

4. Bidders should agree to ACSA’s RFB Terms and conditions

5. Bidders must sign to accept all declarations in this RFB document

The following Pre-Qualification criteria, based on the MAC Sector Charter shall apply:

Large Entities

Transformation Element Criteria

Ownership At least 40% of exercisable voting rights in the enterprise in the hands of black people

At least 20% of exercisable voting rights in the enterprise in the hands of black women

Management Control At least 40% Black Executive Management as a percentage of all executive management

Qualifying Small Enterprises(QSEs)

Transformation Element Criteria

Ownership At least 40% vote of exercisable voting rights in the enterprise in the hands of black people

At least 30% of exercisable voting rights in the enterprise in the hands of black women

Management Control At least 50% Black representation at Executive Management level

Bidders will be required to provide proof that the above targets have been achieved in the form of their comprehensive B-BBEE report. Only Bidders who comply with these requirements will be

assessed further in terms of the Bid.

5.4 Functionality / Technical

The functionality/technical evaluation will be conducted by the Bid Evaluation Committee which comprises of

various skilled and experienced members from diverse professional disciplines. The evaluation process will be

based on prequalification/ threshold criteria.

Points allocated for Functionality shall be evaluated in accordance with the criteria as listed below. Total Quality

points allocated shall be 100. Bidder must score minimum score per sub-section equal to 70% (seventy

percent) of the available point allocation and an overall minimum threshold of 70 points out of 100 is

required to be achieved for the Bidder to be eligible for further evaluation on Price and B-BBEE (50/50 split).

DETAILED BUSINESS

REQUIREMENTS

Information and /

or format required

Weighting Minimum

Threshold

MASTER PLAN: 30 21 points

(70%)

NB: Failure to meet the minimum points will result in the elimination of the Bidder

1. Describe how the Master Plan will restore ACSA’s premium offering focussing on the following:

1.1. Reformatting the existing advertising positions for sites in each zone

and optimising the number of positions in relation to revenue potential in the zone with special consideration given to the use of digital platforms:

o Reformatting of sites to optimise revenue potential = 2 points o Demonstrates how number of sites proposed will optimise

revenue potential = 2 points o Digital platforms in relation to revenue potential = 1 point

1.2. Creating an enhanced and consistent look and feel across all sites or

positions in each zone: o Enhancement demonstrated = 3 points o Consistency demonstrated = 2 point

2. Describe how the Master Plan will create advertising solutions that are integrated into the traveller journey and experience to increase value to advertisers and passengers as follows:

2.1. Describe how the Master plan will appropriately utilise the various

media types and formats to unlock commercial value and enhance the traveller experience:

o Appreciation of how the different media formats will speak to passengers along their journey through the airport = 2 points

o Demonstrates how the different media formats will unlock commercial value = 2 points

o Utilisation of digital platforms and the placement thereof = 2 point

Narrative

Narrative and / or

diagrams and / or

mock-ups

Narrative

5

5

10

o Integration of airport messaging and positioning = 2 points o Allowances and integration of retail marketing branding = 2

points

2.2. Demonstrate how the airport “ambiance” themes will be incorporated

into the Master Plan design: o Incorporation of the ambiance design elements into proposed

structures = 2 points o Degree to which the theme is successfully conveyed = 3 points

2.3. Indicate a design / layout that serves the Master Plan as described above:

o Conveys consideration and consolidation of the following key elements: = 5 points

➢ Reformatting ➢ Appreciation for passenger flows ➢ De-cluttering (optimisation of the number of sites) ➢ Enhanced and consistent look and feel achieved

through various media formats

Narrative supported

by visual aids

Design layout

(Map)

5

5

SIMILAR / RELEVANT EXPERIENCE OF THE ENTITY AND

PROPOSED TEAM

25 17.5 points

(70%)


3. Company profile and service offerings relevant to this project

3.1. Evidence that the bidder is a reputable media / advertising specialist

with at least 3 years’ relevant continuous experience: (In the case of a JV, the experience of the individual entities making up the JV will be considered)

o Demonstrates through the company profile (Appendix D) that services relevant to this project have been undertaken for a minimum period of 3 continuous years = 5 points (List of services should indicate the similarity of the opportunity, value of the project, duration of the contract)

o Provides two testimonials from past or current advertising rights issuer (e.g. Private property owner or municipality) with whom the bidder has had sustainable and successful relationships = 5 points (Reference information should contain: name of rights issuer, description of the rights held, dates, bidders’ responsibilities and a contactable reference)

o Provides two testimonials from past or current brands or media buyers who have successfully and sustainably utilised the bidder’s advertising solution = 5 points (Reference information should contain: client name, project description, dates, bidders’ responsibilities and a contactable reference)

3.2. The key members of the bidder’s leadership, management and operational team:

o Bidders must submit an organizational structure demonstrating the allocation of resources (Appendix K) = 5 points

o Curriculum vitaes of the allocated resources demonstrates depth of experience and related industry knowledge (Appendix L) = 5 points

As per points listed

Organogram & CVs

15

10

FINANCIAL SOUNDNESS 20 14 points

(70%) NB: Failure to meet the minimum points will result in the elimination of the Bidder

4. Funding and Financial Plan

4.1 The Bidder must demonstrate that the proposed bid application is

unlikely to be dishonoured. This is to be demonstrated through submission of an investment plan and financial letter of support indicating that the bidder has sufficient facilities to cover the value of the bid over its lifespan

o Letter of intent from bank / financial institution or investor providing financial facilities to fund the opportunity with the requisite conditions required for the funding to be made available in writing = 2 points

o The letter of intent must be a commitment from the funder and the conditions to be met for the funding must be articulated and be achievable so as to give comfort that in the event that the Bidder is successful he will be able to satisfy funding requirements = 3 points

4.2 Sales and Sales Growth Strategy

o Provide calculations on how Sales are derived together with impact of marketing and future growth indicators, which assumptions are prudent, reasonable and stress-testedover the life span of the award taking into account seasonal changes of the Aviation and Media industry = 5 points

4.3 Interest cover ratio, Current ratio and Debt gearing ratio

o Provide the current monthly interest payments that the Bidder has to make on current loans. This is to be calculated against the earnings before interest and taxes so that the Bidder demonstrates its ability to meet it immediate debt obligations = 3 points

o Provide details of current debt levels and the calculation for the Current Ratio and Debt Gearing ratio which assumptions are prudent, reasonable and stress-tested over the lifespan of the award taking into account seasonal changes in the Aviation and Media industry = 3 points

o Net Cashflow from Proposed Opportunity – Bidder to provide details of anticipated Capital expenditure, available Working Capital and Financial Return on Investment to be in line with industry norms eg. Information from Listed co; brand)which assumptions are prudent, reasonable and stress-tested over the life span of the award taking into account seasonal changes of the Aviation and Media industry = 4 points

Bank / Investor

letter of intention

Calculations &

Narrative

Calculations &

Narrative

5

5

10

TECHNICAL CAPABILITY 25 17.5 points

(70%)


5. Marketing, Sales & Operational Plan

5.1. Provide marketing, sales and operations plan (Appendix T) for the

advertising opportunity: o Marketing plan shows an appreciation for the uniqueness of the

airport advertising opportunity. Details how airport advertising will be sold in relation to the bidder’s existing portfolios = 3 points

o Marketing plan demonstrates how on-airport audience opportunities will be exploited and monetised = 2 points

o Marketing plan details platforms to be utilised in the marketing of the airport opportunity with projected sales figures = 5 points

o Marketing plan includes intelligence around opportunities identified in current advertising / media market and how these will be exploited = 5 points

o Quality and applicability of acquisition and retention strategies within the Marketing Plan = 5 points

o Operational plan with organogram details how the bidder intends to respond to and manage operational requirements across the network of airports in relation to the advertising opportunity = 5 points

As per points listed

25

5.5 Price and B-BBEE

5.5.1 This stage of the evaluation process will be scored on a preference point system of 50/50, where Price

will account for 50 points, whilst preference (B-BBEE) will account for the remaining 50 points. The award

of business will be made to the Bidder which has scored the highest overall points for this stage of the

evaluation, unless the application of transformation imperatives justifies an award to another bidder or

ACSA splits the award or cancels the bid, etcetera

5.5.2 ACSA has determined the rental terms it requires from each of the Advertising Opportunities. Potential

Bidders are therefore to determine whether their particular advertising concepts can sustain the rental

required by ACSA and to only submit a proposal if they irrevocably meet the rental terms. The rental terms

include a minimum monthly guaranteed rental and a percentage of turnover rental whereby the Successful

Bidder will be required to pay an additional quarterly top-up should the turnover rental be greater than the

minimum monthly guaranteed rental for the quarter.

5.5.3 The quantum of the minimum monthly guaranteed rental and the percentage of turnover rental applicable

are as stated in the relevant section of Appendix O (Rent Schedule)

5.5.4 It is ACSA’s intention to establish business relationships on sustainable rental terms such that a “win-win”

partnership exists whereby both ACSA and the Successful Bidder are committed to growing revenue for

mutual benefit. It is for this reason that a minimum monthly guaranteed rental and a percentage of turnover

rental have been prescribed to enable the financial evaluation of bids to be undertaken on the basis of

the extent to which the bidder will grow ACSA’s share of the advertising revenue by virtue of the turnover

rental becoming payable to ACSA.

5.5.5 Minimum monthly guaranteed rental will be allocated 40 points out of the available 50 points for Price.

The Bidder that submits the highest starting minimum monthly guaranteed rental will be allocated 40

points. The points allocated to the lower minimum monthly guaranteed rental offer by the remaining

bidders will be allocated lower in proportion to the higher minimum monthly guaranteed rental offered by

the highest bidder. The minimum monthly rental proposed by Bidders in month one of the first year will

be used to determine the points scored. The minimum rental will remain and escalate annually as per the

annual CPI increase on every lease anniversary and will be capped at a minimum of 5% and a maximum

of 7%.

5.5.6 Percentage of Turnover Rental proposed will be allocated 10 points out of the available 50 points for

Price. The Bidder that submits the highest percentage of turnover rental will be allocated 10 points. The

Bidder should submit only one turnover percentage that will be applicable throughout the lease period.

The points allocated to the percentage of turnover rental offered by the other Bidders will be in proportion

to the percentage of turnover rental offered by the highest bidder. The percentage of turnover rental

proposed by bidders from month one of the first year and which remains consistent throughout the lease

period will be used to determine the points scored. The percentage of turnover rental proposed by the

Bidder cannot be reduced in subsequent months or years.

5.6 Transformation Imperatives

Bidders must first meet the Mandatory Administrative Requirements (Stage 1), Minimum Functionality Threshold (Stage 2) and have been scored for the 50/50 Preferential points for Price and B-BBEE (Stage 3).

5.6.1 Award for each opportunity will be made to the Bidder scoring the highest combined points for Price (50 points) and B-BBEE (50 points)

5.6.2 No Bidder will be awarded more than 2 opportunities

5.6.3 Bidders will be awarded opportunities according to their Order of Preference (Appendix Q) where they have qualified for the award of 2 or more opportunities

5.6.4 5.6.5 Should it be that there are no other qualifying Bidders who have 1 or less opportunities, the

Advertising Opportunities may be awarded to Bidders who will have 2 or more opportunities post award

SECTION 6: RETURNABLE DOCUMENTS

Appendix A Declaration form

Appendix B Declaration of forbidden practices form

Appendix C Acceptance of RFB terms and conditions

Appendix D Company profile, executive summary and organogram

Appendix E Joint Venture (JV) Agreement (If applicable)

Appendix F Valid Original Tax Clearance Certificate

Appendix G B-BBEE Declaration Form

Appendix H Original B-BBEE Verification Certificate

Appendix I Latest audited financial statements/management accounts

Appendix J Bank / Financial Letter of Support

Appendix K Structure of resources for the Opportunity

Appendix L CV ’s of key personnel

Appendix M Schedule of Bidder Experience

Appendix N Certificate of Incorporation

Appendix O Rent Schedule: Bid Rentals & Turnover %





APPENDIX A: DECLARATION FORM

Making a Declaration

Any legal person or persons having a relationship with persons employed by ACSA, including a blood relationship,

may submit a bid in terms of this bid document. In view of possible allegations of unfairness, should the resulting

bid, or part thereof, be awarded to persons connected with or related to ACSA employees, it is required that the

Bidder or his/her authorised representative declare his/her position in relation to ACSA employees or any member

of the evaluation or adjudication committee which will consider bids. Furthermore, ACSA requires all bidders to

declare that they have not acted in any manner inconsistent with the law, policy or fairness.

All bidders must complete a declaration of interest form below:

Full name of the Bidder or representative of the

Bidding entity

Identity Number

Position held in the Bidding entity

Registration number of the Bidding entity

Tax Reference number of the Bidding entity

VAT Registration number of the Bidding entity

I/We certify that there is a / no relationship between the Bidding entity or any of its shareholders / directors /

owner / member / partner with any ACSA employee or official.

Where a relationship exists, please provide details of the ACSA employee or official and the extent of the

relationship below

Full Names of Directors / Trustees / Members / Shareholders of the Bidding entity

Full Name Identity Number Personal Income Tax Reference

Number

I/We declare that we have not acted in any manner which promotes unfairness, contravenes any law or is against

public morals. We further certify that we will in full compliance of this bid terms and conditions as well as ACSA

policies in the event that we are successful in this bid.

Declaration:

I/We the undersigned ____________________________________________________ (Name) herby certify that

the information furnished in this bid document is true and correct. We further certify that we understand that where

it is found that we have made a false declaration or statement in this bid, ACSA may disqualify our bid or terminate

a contract we may have with ACSA where we are successful in this bid.

___________________________ _________________________________

Signature Date

____________________________ __________________________________

Position Name of bidder

APPENDIX B: DECLARATION OF FORBIDDEN PRACTICES

I/ We hereby declare that we have not been found guilty of any illegal activities relating to corruption, fraud, B-

BBEE fronting, anti-competitive practices and/or blacklisted by an organ of State Owned Company, etc. and/or

any other forbidden practices.

I/We declare the following:

Description Penalty Organ of State / State Owned Company

a)

b)

Furthermore, I/ We declare that to the best of my/ our knowledge there is / are no further practices to be

declared or which are in the process of being finalised. The following are alleged practices which have not yet

been finalised.

Description Organ of State / State Owned Company

a)

b)

This declaration was signed on _______ of ____________________________ 2017.

Name:

Designation:

Signature:

Bidder:

APPENDIX C: ACCEPTANCE OF RFB TERMS AND CONDITIONS

TO: Supply chain management office

Airports Company South Africa Ltd.

Proposal No: COR50/2017

1. Bidder’s Name and Contact Details

Bidder:

Physical Address:

Correspondence to be addressed to:

Fax Number:

Phone numbers:

Email Address:

Contact Person:

2. Proposal Certification

We hereby submit a Proposal in respect of the Advertising Opportunity.

• We acknowledge that ACSA’s terms and conditions (as amended and mutually agreed between

the parties if necessary) shall apply to the agreement with the successful Bidder/s,

• We have read, understand and agree to be bound by the content of all the documentation

provided by ACSA in this Request for Bid.

• We accept that ACSA’s Bid Board’s decision is final and binding.

• We certify that all forms of the Bid as required in the bid document are included in our submission.

• We certify that all information provided in our bid is true, accurate, complete and correct.

• This bid is specific to this Advertising Opportunity only; it has no impact, influence or effect on any

other opportunity for which a bid may be submitted.

• The undersigned is/are authorized to submit and sign the bid that shall be binding on closure of

the bid submission.

• The bid is binding on this Bidder for a period which lapses after one hundred and eighty (180)

days calculated from the closing date of bid submission.

Thus, done and signed

at on this the day of 2017

Signature:

Name:

For and behalf of:

Bidding entity name:

Capacity:

APPENDIX D: COMPANY PROFILE, EXECUTIVE SUMMARY AND ORGANOGRAM

Bidder to provide brief summary of their organisation and include their organisation’s Organogram relevant to

this opportunity with names, (starting with the Managing Directors/CEO)

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX E: JOINT VENTURE (JV) AGREEMENT (IF APPLICABLE)

Bidder to attach agreement/Memorandum of understanding between the parties.

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX F: VALID ORIGINAL TAX CLEARANCE CERTIFICATE

(Bidder to attach valid Tax Clearance Certificate)

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX G: B-BBEE DECLARATION FORM

1. Sub-Contracting

1.1 Will any portion of the opportunity be sub-contracted? YES / NO (*Delete whichever is not

applicable)

1.2 If yes, indicate:

a) The sub-contracted percentage is: ______%

b) The name of the sub-contractor is: __________________________________________

c) The B-BBEE status level of the sub-contractor is: _____________________

d) The sub-contractor is an EME: YES / NO (*Delete whichever is not applicable)

2. Declaration with Regard to the Bidder

2.1 Name of bidding entity

2.2 VAT Registration number:

2.3 Company registration number:

2.4 Type of company / firm:

Partnership/Joint Venture / Consortium

One person business/sole propriety

Close corporation

Company

(Pty) Limited

[TICK APPLICABLE BOX]

2.5 Describe principal business activities

2.6 Company Classification

Manufacturer

Supplier

Professional service provider

Other service providers, e.g. transportation, etcetera.

[TICK APPLICABLE BOX]

2.7 Total numbers of years the company / firm has been in business: _________________

2.8 I/we, the undersigned, who is/are duly authorised to do so on behalf of the company/firm, certify that:

2.8.1 The information furnished is true and correct;

2.8.2 If the B-BBEE status level of contribution has been claimed or obtained on a fraudulent

basis or any of the conditions of contract have not been fulfilled, ACSA may, in addition to

any other remedy it may have:

a) Disqualify the person from the bidding process;

b) Recover costs, losses or damages it has incurred or suffered as a result of that

person’s conduct;

c) Cancel the contract and claim any damages which it has suffered as a result of

having to make less favourable arrangements due to such cancellation;

d) Restrict the bidder or sub-contractor, its shareholders and directors, or only the

shareholders and directors who acted on a fraudulent basis, from obtaining

business from ACSA for a period not exceeding 10 years, after the audi alteram

partem (hear the other side) rule has been applied; and

e) Forward the matter for criminal prosecution.

Witnesses:

1. ______________________________

__________________________

Signature(s) of bidder(s)

2. ______________________________

Date: ______________________________

Address: ____________________________________________

_____________________________________________

APPENDIX H: B-BBEE VERIFICATION CERTIFICATE

The bid must include a B-BBEE verification certificate issued by a SANAS accredited ratings agency, or an

IRBA Registered Accounting Practice.

A detailed report of the B-BBEE verification certificate must be included as part of the bid submission. This

report must clearly indicate an analysis of the shareholding.

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX I: LATEST AUDITED FINANCIAL STATEMENTS/ MANAGEMENT ACCOUNTS

(Complete form below and attach latest 3 years’ company/company’s financial statements)

1. Company details:

Registered Address: ..............................................................................................................

Contact Person: ..............................................................................................................

Telephone: ..............................................................................................................

Fax: ..............................................................................................................

2. Shareholders

Names/Percentages of holdings: .............................................................................................

3. Bankers

Bank: ..............................................................................................................

Branch: ..............................................................................................................

Account Number: ..............................................................................................................

4. Turnover

Approximate turnover for each of the past three years (most current years to be provided)

Year 1: ..............................................................................................................

Year 2: ..............................................................................................................

Year 3: ..............................................................................................................

5. Company Performance

Tabulate the performance indicators requested for each of the past three years (most

current years to be provided):

YEAR Net Profit (ZAR): Gross Assets

(ZAR):

Owners’ Equity

(ZAR)

Year 1

Year 2

Year 3

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX J: BANK / FINANCIAL LETTER OF SUPPORT

Bidder to attach a letter from the bank / financial institution or entity providing financial facilities to fund the

Advertising opportunity in line with the definition of banking codes as provided below:

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

A Means the party is undoubted for the amount of your enquiry

First class firm or individual of undouted financial standing

B Means the party is good for the amount of your enquiry

Firm or person having a good record and meeting engagements promptly. Amount well within capacity of their ordinary business commitments.

C Means the party is good for normal business engagements and the amount if strictly in the way of business

Where a firm or individual has a good record but the amount may appear to be high in relation to their normal transaction requirements, or where a recent balance sheet is not held and information on the account owner is limited but the conduct of the account indicates that the transaction in question are unlikely to be dishonoured.

D Good moderate business engagements and a fair business risk.

Where position is modest or unknown, but where account is satisfactory conducted moderate business commitments (i.e. the risk is fair, note it is fairly risky)

E The figures are considered to too high and the figures are out of proportion to the firm’s financial capacity.

Self-explanatory

F F- The financial position of the business is unknown

Self-explanatory

G G- Paper is occasionally dishonoured Self-explanatory

H H- Paper frequently dishonoured Self-explanatory

APPENDIX K: BIDDER STRUCTURE OF RESOURCES FOR THE OPPORTUNITY

(Bidder to attach structure of resources for the opportunity)

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX L: CV of Key Personnel

Complete and make copies of template as required

Position to hold for this

opportunity

Name

Surname

Nationality

Date of Birth

Current Residence

Education

Major Experience in previous years related to similar type of advertising opportunities

Employer Details

Client Name

Reference details/ Letter of

confirmation (Attach)

Position Held

Job Description

Value of Portfolio excluding VAT

Duration: From (date) to (date)

Professional Body Affiliation/

Accreditation

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

APPENDIX M: SCHEDULE OF BIDDER EXPERIENCE

Client (Name, Tel No, Contact

Person)

Description of

contract

Value of work

inclusive of VAT

(Rand)

Duration

(From – to)

The Bidder must explain in detail, in no more than 10 pages, the extent of the Bidders’ experience in the operation

and management of an advertising portfolio at any airport or comparable trading environment including, but not

limited to the following:

• History of the Bidders experience in the operation and management of advertising portfolios; both

generally and in respect of airports;

• Number of years in business

• Location of headquarters or head office;

• Number of employees;

• Information on advertising concessions operated by the Bidder in the last 5 years;

Bidders should provide any other information which will support the Bidders’ experience as it pertains to this

submission.

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

Appendix N: Certificate of Incorporation

(Bidder to attach certificate of Incorporation)

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

Appendix O Rent Schedule:

Bid Rentals & Turnover Rental %

This sheet must be completed for each opportunity the Bidder wishes to bid for.

Notes:

The Bidder must propose (offer) monthly minimum rentals and turnover rental percentage of not less than the minimum specified for each opportunity listed.

Bidders must indicate for each opportunity the basis on which the bids and associated rentals are offered by ticking the appropriate option.

1. Opportunity:

☐Outdoor ☐Domestic Arrivals ☐Domestic Departures ☐International

2. Capex requirement for each year of the lease split into:

☐Each year to be provided by Bidder

☐Each year to be provided by ACSA

Note: ACSA has option and not obligation to contribute to be refunded as additional rentals per Point 3.6 of the Bid Document

3. SPV (Special Purpose Vehicle) Are you also providing an option for ACSA to become shareholder in a SPV, this is over and above the lease agreement?

☐YES

Proposed Equity ownership for ACSA …………………….. %

Provide Business Plan inclusive of equity contributions and returns for ACSA

4. Minimum Monthly Rentals (Bidders to complete only for the opportunity for which they are bidding):

OPPORTUNITY REQUIRED MINIMUM MONTHLY RENTAL

PROPOSED MINIMUM MONTHLY RENTAL

(OFFER)

OUTDOOR R 4,000,000

DOMESTIC DEPARTURES R 3,500,000

DOMESTIC ARRIVALS R 3,500,000

INTERNATIONAL (ARRIVALS / DEPARTURES)

R 3,500,000

5. Turnover Percentage (Bidders to complete only for the opportunity for which they are bidding)

OPPORTUNITY REQUIRED MINIMUM TURNOVER

PERCENTAGE

PROPOSED MINIMUM TURNOVER

PERCENTAGE

OUTDOOR 50%

DOMESTIC DEPARTURES 50%

DOMESTIC ARRIVALS 50%

INTERNATIONAL (ARRIVALS / DEPARTURES)

50%

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….


(Bidder to attach a comprehensive list of names with Identity numbers of directors including their ID copies)

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….


Where Bidders submit bids for more than one Advertising opportunity, Bidders must complete this form indicating

their order of preference.

This order of preference is required in the event that bidders are ranked highest for more than two opportunities,

and ACSA in meeting its objective criteria will utilise this preference order in awarding the opportunity.

1. Opportunity: …………………………………………………………………………………………………………

2. Opportunity: ………………………………………………………………………………………………………….

3. Opportunity: ………………………………………………………………………………………………………….

4. Opportunity: ………………………………………………………………………………………………………….

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….


Some of the important features of the concession include the following:

• The Successful Bidder is required to sign the pro forma Concession Agreement within 21 days of ACSA

awarding it the Bid;

• The concession will be granted on terms and for the period as stated in Point 3.5 (The Advertising

Opportunities)

• During the term of the lease, the Successful Bidder will pay either the turnover rental derived from gross

sales or the minimum monthly rental, whichever is the greater but which shall never be lower than the

minimum guaranteed rental proposed by the Concessionaire in Appendix S (Rent Schedule). In

subsequent years of the lease, the annual minimum guaranteed rental shall escalate by annual CPI rate

which will not be lower than 5% and higher than 7% each year; Up until the CPI certificate as defined in

the lease is declared, the rental will escalate at 6%

• In addition to the rental, the Successful Bidder shall pay ACSA for electricity; permit costs and any other

direct utilities and consumables provided by the airport;

• The Successful Bidder will be required to give ACSA security for the performance of its obligations in an

amount not less than the aggregate of 3 months’ rental of the first year of the concession. This will be in

the form of a cash deposit or payment guarantee from a reputable financial institution acceptable to ACSA;

• The Successful Bidder will further be required to give ACSA a surety equal to the remaining 9 months’

rental of the first year of the concession

• ACSA will, from time to time prescribe rules and insurance requirements relating to the premises, the

buildings and /or the airport pertaining to, amongst others, security, fire, safety, access, common area

use, parking, storage, air-conditioning, heating and matters allied thereto. The Successful Bidder is

required to comply with these rules;

• The Successful Bidder will be required to keep comprehensive accounting records, materially complying

with Generally Accepted Accounting Practice in use in the Republic of South Africa, together with all

books of original entry and source documents, relating to all sales achieved by the Successful Bidder

from the premises. ACSA shall have access to these records and will be able to make copies thereof;

Note to Bidders: The above terms do not supersede those terms contained in the pro forma Concession

Agreement (Appendix S). Any conflict will be resolved in favour of the terms recorded in the pro forma Concession

Agreement.

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….


The pro forma Concession Agreement contains key commercial terms on which the successful Bid will be

awarded. Bidders are required to review the pro forma Concession Agreement carefully and to be fully acquainted

with its terms.

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….

Appendix T Marketing, Sales and Operational Plan

(Bidder to provide detailed Marketing, Sales and Operational Plans)

Signed:

…………………………………..

Date:

………………………………………………

Name:

…………………………………..

Position:

………………………………………………

Bidder:

……………………………………………………………………………………………………….