In Line with SAA Product Specification/S

Request For Information

In line with SAA Product Specification/s

RFI GSM031/17

BUSINESS UNIT: Inflight Logistics & Inventory Management

TYPE OF PRODUCT: SAA’s Laundry and Dry Clean Linen (On-board, Catering, SAA Lounge, SAA Medical Services and SAAT requirements)

1. Background

South African Airways (SAA) is a State owned aviation asset – therefore its business operationsare run within a highly regulated environment; making compliance a key issue. All Business Units are expected to adhere to all applicable rules, laws and standards, to ensure SAA operational efficiency and sustainability of its business. Continuous

SAA is currently taking part in an international programme designed to recycle on-board products and is one of the few airlines in Africa and one of six in the world to achieve International Air Transport Association (IATA) Environmental Assessment Stage 1 status - therefore, seeking a partner to maintain this achievement and where possible support the current carbon emission’s initiatives (as part of SAA's Group Environment Strategy and in SAA's continuous effort to become one of the world's greenest airlines).

The aforementioned achievement comes after IATA’s two-year environmental assessment initiative to develop and establish an environmental standard and management system for over two hundred and forty (240) member airlines.

The aim of the two-year initiative is to create a minimum, recommended standard for airlines in areas such as general recycling, on-board recycling, efficient flight and airport operations, limiting and reducing carbon emissions, general energy efficiency as well as environmentally conscious Procurement Procedures. When it comes to the standard disposal options, which are reuse, recycling, energy recovery, neutralization, destructive incineration and landfill, SAA prefers those resulting in the most beneficial use, with the highest degree of preference being placed on reuse and descending to the least preferred disposal option of landfill.

The aforesaid does not only aim at cutting the energy costs and thereby maximising the bottom line as far as possible – considering, cutting energy consumption has a long term environmental implications, being at the heart of the Government and SAA. It is therefore against this background that SAA is looking for the service provider that will invest in machinery that is energy efficient, optimal and cost-effective.

As a state owned aviation asset, SAA has its Head Office at Airways Park, in Johannesburg; at the grounds of OR Tambo International Airport (ORTIA); whilst there are three stations: Johannesburg (JNB), Cape Town (CTP) and Durban (DUR):

SAA runs a 24hr operation out of Johannesburg with an average 76 departures and arrivals daily with a minimum of 30 minutes ground time and a maximum of four hours ground time.

In Cape Town and Durban there are approximately 20 departures and 20 arrivals per station and per day.

2. requirements Description:

SAA aim is to appoint a service provider to launder and dry clean all SAA’s linen from:

On-board and Catering
SAA Loungeand
SAA Medical Services’ as per the list below for all three stations.

Table 1: The Current On-board Catering and Cabin Linen Items

Item No. / Description For Onboard / Total Estimated Annual Qty in each ORTIA / Total Estimated Annual Qty in each CPT / Total Estimated AnnualQty in each DUR
SAXXXX / Towel Hot Business Class / 1016160 / 0 / 0
SAXXXX / PC Duvet Inner / 394200 / 0 / 0
SAXXXX / YC Blanket Red / 2198760 / 0 / 0
SAXXXX / Pillow Case Premium Class / 446760 / 0 / 0
SAXXXX / PC Duvet Cover / 394200 / 0 / 0
SAXXXX / Headrest Cover Premium Class Lie-Flat / 1909680 / 0 / 0
SAXXXX / Premium Serviettes / 1425325 / 229950 / 153300
SAXXXX / Premium Table Cloth / 807745 / 32850 / 21900
SAXXXX / PC Padded Seat Cover / 289080 / 0 / 0
SAXXXX / PILLOW SCATTER JC / 240900 / 0 / 0

Table 2:Lounges:

Quantity (each) per Lounge, per day:
Item / Domestic / Arrivals / International / First Class
Napkin / 60
Table Cloth / 2
Blanket / 2
Bath Towel / 27 / 15 / 45 / 14
Hand Towel / 3 / 14 / 11
Bath Mat / 30 / 11 / 51 / 14

Table 3:Medical Services:

ITEM / Quantity / Frequency / Turn Around Time / Wash & Iron
Gowns / 70 / 3 x /week / 3 days / Wash & Iron
Pillow cases / 10 / 3 x / week / 3 days / Wash & Iron
Sheets / 10 / 3 x / week / 3 days / Wash & Iron
Doctors Coats / 5 / 1 x / week / 3 days / Wash & Iron
Towels / 5 / 3 x / week / 3 days / Wash & Iron
Dressing Towels / 12 / 1 x / week / 3 days / Wash & Iron
Curtains / 14 / Twice / year / 7 days / Wash & Iron
Blankets / 9 / 3 x /week / 3 days / Wash & Iron

The service is required in Johannesburg only, whereas:

The successful Bidder will operate from SAA’spremises at OR Tambo International Airport.
There will be rental for accommodation space during the contractual period.
The Bidder will be responsible for payment of all other amenities namely: water, electricity, Fuel/Electricity for water heating, affluentwater compressed air, maintenance and upkeep of the related equipment and infrastructure directly linked to the laundry.
More information/average pertaining to the cost of average rates per square meter, average water consumption will be given duringthe applicable Briefing Session.
The Successful Bidder should consider a takeover agreement with SAA regarding some or all of the current laundry specific equipment like cooling tower (compressor) , air dryer , boilers and all existing piping form the plant room in order to reduce the set up capital cost (pending that the existing equipment fits into the environmental targets).
The Bidder must provide its own green economy efficient equipment for effective operation.
The successful Bidder must procure efficient equipment, install, commission and operate for specified period over which they will recoup their capital investment

SCOPE OF WORK AND Service Level Agreement (SLA)

3. Scope of work logistics

The following activities have to be performed by the successful Bidderfor Laundry Servicesduring the contractual period:

Time lines as dictated by the SAA schedule will be used for the service that is to be performed.
Load plans will be provided per destination, and the service provider is expected to pack per flight as per specification.
Tasks indicated below must be completed by the Domesticlaundry servicesper station for each and every aircraft which lands in that particular station, whilst:

All items in Table 1 – 3 to be striped on boardby the domestic caterer and cabin the cleaning company;

The aforementioned stripped items are to be delivered to the Service Provider (successful Bidder)at different intervals as per set schedule;

The stripped items are to be counted,laundered and repacked for the next flight as perthe setFlight Schedule.

The handover process must be designed and put in practice, as it will be from one vendor to another.
When items are repacked(per flight) they will have to be returned to another vendor so as to be loaded on board the aircraft.
The successful vendor (Service Provider) must provide the packaging of the aforementioned items as well as transportation, where needs be.

4. Pickup / Delivery

The successful Bidder must provide relevant and necessary personnel; including equipment to collect and deliver the aforementioned items to the airline’s other vendors and departments.
All set items (per schedule)must be prepared by the successful Bidder and made ready for collection 24hrs ahead of normalSAA scheduled flight departures.
The successful Bidder must be flexible (as expected) – thus willing and able to accommodate any irregular flight operations.
The successful Bidder must conduct accurate hand-over counts of the stock items from and to the airline’s relevant vendors and departments.

5. Counts

The successful Bidder shall furnish detailed delivery tickets (carrier’s part number and quantity as per attached Table 1- 3) of all items picked up, cleaned and returned per station (JNB, CPT & DUR).
The Service Provider will attach the delivery ticket to the invoice for SAA’s management to verify Service Provider’s invoices.
Whenever the carrier’s count of items picked up, cleaned and returned differs from the successful Bidder’s (contractor’s) delivery tickets and or invoice, it shall be taken that contractor agrees to accept it the carrier’s count as basis for payment.

6. Laundry specifications

It is expected that all items returned to the carrier must be free from lint, hair, dull casts, soap and other contaminants.
Tablecloths and napkins must be laundered separately from other items to ensure elimination of lint.
All items repacked and returned must be free from creases and stains.,
All stained items must be rewashed at no additional charge to the carrier at least once to recover all usable linens before isolating them into the heavily stained group.
Heavily stained group of linens must be washed with a caustic solution (hard wash) to attempt to eliminate as many stains as possible.
All items retaining stains after the “hard wash” must be returned to the carrier marked “permanently stained”.

7. Guarantee of work

The successful Bidder must ensure service of a high quality and industry standards, in all respects,forall items – to be returned, clean with properly packed or wrapped so it meets the standards set by the carrier.
All stains and soilingmust be removed (where possible), without damagingany items as stipulated in Table 1- 3.
Items will be cleaned, utilizing materials approved by the carrier, or materials generally recognized by the trade as least harmful to the items being cleaned.

8. Packaging

All items shall be packaged,per flight,in accordance with the carrier’s requirements at service provider’s cost.

Packaging should protect items from re-soiling during handling and storage and must be protective against any weather ailments.

9. The Stock Taking Process

An accurate stock count is required in order to verify opening stock and effectively ensure accurate stock holding.

To ensure that the above is achieved, the following must be carried out:

Counts are to be carried out in accordance with SAA Inventory count procedures.

Full Inventory count to be carried out on the set date, every month and the completed, verified

stock count result sent to SAA and its appointed Logistics Service Provider.

The vendor is to perform the following:

Locations where items of equipment and laundry should be placed –a detailed floor plan must be provided of the vendor’s unit for location of all inventory items.
Cut-off procedures for the stock in light of the activities in different locations must be provided. This must ensure that employee safety is not compromised and that movements are well contained.
Stock procedures to be communicated by the Inventory/Operations Manager to all persons who will be participating in the stock count.
Procedure to ensure that all items to be counted are collected from areas which otherwise are not used for holding equipment e.g. delivery vans etc.

10. The Storage and Safeguarding of SAA Equipment

SAA is the sole owner of all SAA equipment and Inventory items.
Adequate security measures must be implemented to safeguard SAA equipment
A full Inventory list must be upheld monthly.
Should there be assetsnot included on the asset register,the successful bidder must give a written report to SAA with immediate effect.
Inventory must be packed properly in the stores.
The Service provider is responsible for bond store management, as stipulated by the South African Revenue Services and Customs regulations, as well as any other applicable regulations.
The Service provider is obliged to declare all issues out of the bond store to customs authorities as prescribed by the country’s customs regulations.
The Service Provider will be held liable and accountable for any damage or loss to SAA stock items due to negligence on the part of the service provider, its employees or agents while the stock items are in their possession.
The Supplier shall on termination of this agreement pack and palletize all SAA’s stock for collection by SAA’s appointed logistic service provider.

11. Management Reports

The Service provider shall report on vendor service levels on a monthly basis.
The Service provider shall report monthly on inventory levels in the domestic network.
The Service provider shall provide monthly reports on items that are permanently stained.
The Service provider shall provide weekly report from product handover discrepancies from other vendors
In the event of rotation trends being at variance with the expected forecast, the Service provider shall report such trends to SAA. The trends report shall be reported quarterly.

service level/performance

SAA shall review the Service Provider’s performance in accordance with the requirements and terms and conditions of this Agreement and without prejudice to any other rights and/or remedies available to SAA, whether in terms of this Agreement or at law, be entitled to raise penalties in respect of Service failures in accordance with the below table:

Service Failure / Penalty
Incorrect Inventory reporting resulting to the Airline to do emergency freight / Service provider will incur the cost of freight
Non adherence to the handover times resulting SAA vendor to delay flight.5-20min
20min and above / 10% of the invoice
30% of the invoice
Non adherence to Specification / The total amount of the affected item(e.g. if its YC blanket all YC blankets for that flight will not be paid)
Non adherence to handover process & discrepancy report / Total cost of the losses due to non-adherence

SAA shall document such Service failures and shall be entitled to set-off the penalty amount from the next invoice payment.

The table below outlines the current collection and delivery schedule. The airline and the cabin cleaning and grooming service providers collect the clean linen at the same time they deliver the dirty linen. For each deliver and collection, the hand-over process must be followed. This table also indicates the estimated daily requirements as amended.

ANNEXURE A - THE SERVICES

SAA LAUNDRY PROCEDURE (SLA) AND SCOPE OF WORK

Operational issues must be directed to the Lounge Team Leaders/ Manager

No. / ITEM / ACTION
1 / Permits and Permissions / The Laundry Company (Successful Bidder) staff must be in possession of a valid ACSA Airport Terminal permit
2 / Collections and Deliveries / Laundry must be collected and dropped off by the Laundry Company (Successful Bidder) at the SAA Lounges Monday to Sunday including Public Holidays from each lounge at the following times:

Morning 09h00
Afternoon 15h00

3 / Towel Packaging / The towels must be packed as follows:
a / Domestic Baobab lounge / Bath towel and bath mat wrapped in plastic as a set
b / Platinum Lounge / Bath towel, and Hand Towel folded and packed into a separate large bag
c / Arrivals Lounge / Bath towel and bath mat wrapped in plastic as a set
d / International Baobab Lounge / Bath towel and bath mat wrapped in a plastic as set
e / International Cycad Lounge / Bath towels, bath mats and hand towels folded and packed into separate large bags
4 / Towel Colour
Coding / a / Champagne Cream / Used in arrivals , Cycad and Domestic Platinum Lounges
b / Stone / Used in International and Domestic Baobab Lounges
5 / Penalties / Failure by the Laundry Company (Successful Bidder) to adhere to the specifications set out in Clauses 3 and 4 will constitute a breach of the specification given by SAA and will result in penalties being imposed. Such penalties will be the non-payment by SAA for laundering expenses of such items.
6 / Serviettes / All serviettes are to be washed and ironed and packed in a separate large bag.
7 / Condemned Linen / All damaged/torn and old towels and/or serviettes are to be parked and marked separately. These damaged/old items are to be parked and marked separately and should be addressed and delivered for the attention of the Team Leader and/or Manager. Such damaged and /or old items MUST NOT be put back into circulation.
8 / Damaged Linen / Service Provider will accept responsibility for damages whilst there is no means of verifying the age of the items. In this respect, a recommendation is set out on a separate sheet for discussion purposes.
Receipting of the Collection/ Delivery Process:
9 / Receipt books (in triplicate form) are to be provided by the laundry company
10 / Each area will be allocated its own receipt book
11 / Receipt books to be completed as per items and signed off by both the laundry company and SAA staff
12 / Copies of daily receipts are to be kept in each individual area for safe keeping. The laundry company will retain its own copies thereof.
13 / At month-end, copies of daily receipts will form part of the invoice per area and sent to the current responsible person:
Prabashne Reddy
Tell: 011978 6773
Email:
14 / Invoices are to be provided to SAA by no later than the 10th of each month.
SCOPE OF WORK FOR MEDICAL DEPARTMENT LAUNDRY
15 / Frequency of laundry service will be three times a week, Monday, Wednesday and Friday.
16 / There may be an extra request for daily if SAA have pre – employment medical examinations.
17 / The laundry must be packed as follows:
17.1 / Pillow cases – fold twice
17.2 / Sheets – fold four times
17.3 / Doctors Coats –Shirt style
17.4
17.5 / Towels – fold four times
Dressing Towels – Fold four times
17.6 / Medical Gowns – Shirt Style
17.7 / Curtains – depend on size
17.8 / Blankets – depend on size
18 / Pick – up and collection every alternative weekdays at 2pm
19 / A copy of the daily receipt will be kept in the Medical Department for safe keeping
20 / At month end, copies for daily receipt as well as a spreadsheet, must form part of the invoice and sent to Adele Dumas (Tel: 011978 3878) and email: .
21 / The invoices are requested no later than the end of every month.

The Bidders must note the following:

The tender may be awarded as a whole or in part.
Effluent disposal will be at the service provider’s own costs.
The successful Bidder must provide its own machinery to execute the scope of work as well as any source of energy necessary to power the machinery.
Any utilities/consumables used in the process of executing the scope of work will be for the service provider’s own cost.
The successful Bidder operations must comply with all relevant local municipality regulations, in terms of water, waste disposal and chemical used as well as any environmental regulations.
The successful Bidder must have a plan of action to comply with the COHSA SA regulations.

Rev1-12/2015